Ana Holdings Inc. · TSE:9202

Ana — FY2013 Earnings Presentation

40 slides from Ana's earnings presentation, Apr 30, 2014

  1. Slide 1: Financial Results FY2013 ended March 31, 2014

    ANA Holdings Inc. Financial Results FY2013 ended March 31, 2014 Shinichiro Ito President and CEO Kiyoshi Tonomoto Senior Executive Vice President and CFO April 30, 2014 ©ANAHD2014 1

  2. Slide 2: Contents

    Contents 【Part 1】 Ⅰ. FY2013 Financial Results and FY2014 Earnings Forecast Ⅲ. FY2014 Earnings Forecast 《Details》 Outline of FY2013 Financial Results P. 4 Consolidated Earnings Forecast P. 27 and FY2014 Earnings Forecast Earnings Forecast by Segment P. 28 Items of “FY2014 ANA Group Network Plan” P. 5

  3. Slide 3: Part 1: FY2013 Financial Results and FY2014 Earnings Forecast

    【Part 1】 Ⅰ. FY2013 Financial Results and FY2014 Earnings Forecast ©ANAHD2014 3

  4. Slide 4: Outline of FY2013 Financial Results and FY2014 Earnings Forecast

    Outline of FY2013 Financial Results and FY2014 Earnings Forecast 【FY2013】 Profit rise exceeded the revised estimate 【FY2014】 Deploying the growth strategy based on FY14-16 Corporate Strategy FY2013 Results FY2014 Forecasts (¥ Billion) Full Year vs FY12 vs Estimate (*) Full Year vs FY13 Op. Revenues

  5. Slide 5: Items of FY2014 ANA Group Network Plan

    Items of “FY2014 ANA Group Network Plan” 燃油・為替 International Passenger Ensure a competitive advantage with expansion of the Tokyo Metropolitan Airports as a driver of growth Domestic Passenger Implement optimization of supply and demand as well as managing price strategically to sustain profit platf

  6. Slide 6: Estimation of International Passenger Traffic after Haneda Expansion

    Estimation of International Passenger Traffic after Haneda Expansion Stable market demand helped propel off International Passenger Operations of Tokyo Metropolitan area to a positive start European Routes Asian Routes -Shift from Narita to Haneda as a main base -Haneda Route: Focus on demand from/t

  7. Slide 7: Brand New Cost Restructuring / Trend of CASK

    Brand New Cost Restructuring / Trend of CASK Planning ¥-34.0Bn reductions in FY2014 (CASK decreased by ¥-0.96 compared to FY2011 original plan) Brand New Cost Restructuring Trends of CASK of Air Transportation Business Total ¥136.5Bn (¥) * Not including Vanilla Air (ex-AirAsia Japan) 14.0 Including

  8. Slide 8: Introducing New Aircraft and Fleet Plan in FY2020

    Introducing New Aircraft and Fleet Plan in FY2020 Stable acquisition of aircraft as resources for medium-term to long-term growth and replacement over the next 15 years Breakdown of the Latest Order (70 aircraft in total) *Years in brackets shows delivery period B777-300ER : 6 （FY2018-19） A320 neo :

  9. Slide 9: Part 2: FY2013 Financial Results Details

    【Part 2】 Ⅱ. FY2013 Financial Results 《Details》 Ⅲ. FY2014 Earnings Forecast 《Details》 ©ANAHD2014 9

  10. Slide 10: Highlights of FY2013

    Highlights of FY2013 Highlights of Financial Results FY13 【 FY2013 Consolidated Results 】 4th Quarter (Jan.-Mar.)  Op. Income ： ¥ 65.9 Billion （YoY ¥ -37.8 Billion）  Op. Income ： ¥ -3.0 Billion  Net Income ： ¥ 18.8 Billion （YoY ¥ -24.2 Billion ）  EBITDA ： ¥ 202.1Billion （ YoY ¥ -25.5Billion ） 

  11. Slide 11: Consolidated Financial Summary: Income Statements

    Consolidated Financial Summary Income Statements FY12 FY13 Difference 4Q/FY13 Difference Operating Revenues 1,483.5 1,601.0 + 117.4 389.0 + 37.5 Operating Expenses 1,379.7 1,535.0 + 155.2 392.0 + 36.9 Operating Income 103.8 65.9 ‐ 37.8 ‐ 3.0 + 0.6 Op. Margin (%) 7.0 4.1 ‐ 2.9pts ― ― Non-Op. Gains/Lo

  12. Slide 12: Consolidated Financial Position

    Consolidated Financial Summary Consolidated Financial Position Mar 31, 2013 Mar 31, 2014 Difference (¥ Billion) Assets 2,137.2 2,173.6 + 36.3 Shareholders' Equity 766.7 746.0 ‐ 20.6 Remeasurements of Defined Benefit Plans (Included Above) ― ‐30.1 ‐ 30.1 Ratio of Shareholders‘ Equity (%) 35.9 34.3 ‐

  13. Slide 13: Consolidated Statements of Cash Flow

    Consolidated Financial Summary Consolidated Statements of Cash Flow FY12 FY13 Difference Cash Flow from Operating Activities 173.1 200.1 + 26.9 Cash Flow from Investing Activities ‐ 333.7 ‐ 64.9 + 268.8 Cash Flow from Financing Activities 84.5 ‐ 85.5 ‐ 170.1 Net Increase or Decrease ‐ 75.5 50.2 + 12

  14. Slide 14: Results by Segment

    Consolidated Financial Summary Results by Segment (¥ Billion) FY12 FY13 Difference 4Q/FY13 Difference Air Transportation 1,292.7 1,395.2 + 102.4 338.6 + 33.5 Airline Related 178.1 189.6 + 11.4 47.3 + 0.8 Travel Services 161.0 173.4 + 12.4 39.9 + 2.6 Trade and Retail 97.7 110.2 + 12.5 27.5 + 5.4 Reve

  15. Slide 15: Air Transportation Business: Operating Revenues and Expenses

    Air Transportation Business Operating Revenues and Expenses FY12 FY13 Difference 4Q/FY13 Difference Domestic Passengers 665.9 675.1 + 9.1 156.9 + 7.0 International Passengers 348.3 395.3 + 47.0 97.9 + 14.5 Operating Cargo and Mail 126.2 145.5 + 19.2 36.9 + 5.2 Revenues Others 152.1 179.1 + 27.0 46.7

  16. Slide 16: Changes in Operating Income

    Air Transportation Business ・Revenue from contracted Changes in Operating Income Maintenance and handling ･Depreciation except Aircraft ・Mileage/Card Other ･Maintenance, etc. Other Revenue ・LCC Business, etc. (¥ Billion） Expense ･Commission, Advertisement +11.0 ･In-flight service ･Ground Handling, e

  17. Slide 17: Domestic Passenger Operations

    Air Transportation Business Domestic Passenger Operations FY12 FY13 % Y/Y 4Q/FY13 % Y/Y Available Seat Km (million) 58,508 61,046 + 4.3 14,623 + 4.8 Revenue Passenger Km (million) 36,333 37,861 + 4.2 9,052 + 6.7 Passengers (thousands) 41,089 42,668 + 3.8 10,102 + 6.1 Load Factor (%) 62.1 62.0 ‐ 0.1p

  18. Slide 18: Trends in Domestic Passenger Operations

    Air Transportation Business Trends in Domestic Passenger Operations *Not including Vanilla Air (ex-AirAsia Japan) FY13 Revenue Change Factors Quarterly Trends by Segment, Unit Price Increased revenue due to expansion of ASK and Captured increasing pleasure demand proactively. effective allocation

  19. Slide 19: International Passenger Operations

    Air Transportation Business International Passenger Operations FY12 FY13 % Y/Y 4Q/FY13 % Y/Y Available Seat Km (million) 37,947 41,451 + 9.2 10,543 + 8.4 Revenue Passenger Km (million) 28,545 30,613 + 7.2 7,745 + 8.3 Passengers (thousands) 6,276 6,336 + 1.0 1,579 + 4.8 Load Factor (%) 75.2 73.9 ‐ 1.

  20. Slide 20: Trends in International Passenger Operations

    Air Transportation Business Trends in International Passenger Operations *Not including Vanilla Air (ex-AirAsia Japan) FY13 Revenue Change Factors Quarterly ASK/RPK/ Yield Trends Increased revenues due to strategic yield management RPK is trending firmed and yield exceeded last year. in addition t

  21. Slide 21: Trends in ASK/RPK/Composition of Business Class

    Air Transportation Business Trends in International Passenger Operations *Not including Vanilla Air (ex-AirAsia Japan) Trends in ASK/RPK/Composition of Business Class Trends in ASK/RPK by Destination RPK growth exceeded ASK, also business class  Steady trends in RPK for all destinations. passenger

  22. Slide 22: Domestic Cargo Operations

    Air Transportation Business Domestic Cargo Operations FY12 FY13 % Y/Y 4Q/FY13 % Y/Y Available Ton Km (million) 1,905 1,973 + 3.6 469 + 7.1 Revenue Ton Km (million) 460 473 + 2.8 115 + 11.3 Revenue Ton (thousand tons) 463 477 + 2.9 115 + 11.0 Domestic Cargo Load Factor (%) 24.2 24.0 ‐ 0.2pts* 24.7 +

  23. Slide 23: International Cargo Operations

    Air Transportation Business International Cargo Operations FY12 FY13 % Y/Y 4Q/FY13 % Y/Y Available Ton Km (million) 3,958 4,530 + 14.5 1,157 + 16.3 Revenue Ton Km (million) 2,469 2,937 + 18.9 771 + 20.7 Revenue Ton (thousand tons) 621 710 + 14.3 181 + 15.4 International Cargo Load Factor (%) 62.4 64

  24. Slide 24: Trends in International Cargo Operations

    Air Transportation Business Trends in International Cargo Operations FY13 Revenue Change Factors Quarterly Traffic Results and Unit Price Trends Revenue increased due to improvement in unit price Captured demand increase steadily, and volume increase (ATK growth). trend of Japan Export/Import is i

  25. Slide 25: Other Segments excluding Air Transportation Business

    Other Segments excluding Air Transportation Business Results by Segment Airline Related Travel Services （¥Billion） FY12 FY13 Difference FY12 FY13 Difference Revenues 178.1 189.6 + 11.4 161.0 173.4 + 12.4 Op. Income 6.3 2.7 ‐ 3.6 4.4 4.4 ‐ 0.0 Depreciation and Amortization 3.0 3.2 + 0.2 0.0 0.0 ‐ 0.0

  26. Slide 26: Intentionally Blank

    Intentionally Blank ©ANAHD2014 26

  27. Slide 27: Consolidated Earnings Forecast

    FY2014 Earnings Forecast Consolidated Earnings Forecast FY13 FY14(E) Difference （¥Billion） Operating Revenues 1,601.0 1,700.0 + 98.9 Operating Expenses 1,535.0 1,615.0 + 79.9 Operating Income 65.9 85.0 + 19.0 Op. Margin (%) 4.1 5.0 + 0.9pts Recurring Income 42.9 55.0 + 12.0 Net Income 18.8 35.0 + 16

  28. Slide 28: Earnings Forecast by Segment

    FY2014 Earnings Forecast Earnings Forecast by Segment FY13 FY14(E) Difference （¥Billion） Air Transportation 1,395.2 1,500.0 +104.7 Airline Related 189.6 198.0 + 8.3 Travel Service 173.4 175.0 + 1.5 Trade and Retail 110.2 112.0 + 1.7 Revenues Total for Reporting Segments 1,868.6 1,985.0 + 116.3 Other

  29. Slide 29: Air Transportation Business Earnings Forecast

    FY2014 Earnings Forecast Air Transportation Business FY13 FY14(E) Difference （¥Billion） Domestic Passengers 675.1 692.0 + 16.8 International Passengers 395.3 453.5 + 58.1 Operating Revenues Cargo and Mail 145.5 168.5 + 22.9 Others 179.1 186.0 + 6.8 Total 1,395.2 1,500.0 + 104.7 Fuel and Fuel Tax 366

  30. Slide 30: Passenger Operations Earnings Forecast Assumptions

    FY2014 Earnings Forecast 《Passenger Operations》 Earnings Forecast Assumptions for FY14（vs. FY13） * : Difference Domestic Passengers International Passengers ** : year-on-year basis 1H(E) 2H(E) FY14(E) 1H(E) 2H(E) FY14(E) Not including Vanilla Air (ex-AirAsia Japan) Available Seat km ‐ 2.0 + 0.5 ‐ 0.

  31. Slide 31: Cargo Operations Earnings Forecast Assumptions

    FY2014 Earnings Forecast 《Cargo Operations》 Earnings Forecast Assumptions for FY14（vs. FY13） Domestic Cargo International Cargo * : Difference ** : year-on-year basis 1H(E) 2H(E) FY14(E) 1H(E) 2H(E) FY14(E) Available Ton km ‐ 4.4 + 3.5 ‐ 0.5 + 26.3 + 15.5 + 20.6 Revenue Ton km + 11.2 ‐ 1.1 + 4.6 + 1

  32. Slide 32: Consolidated Financial Position and Cash Flow (Estimate)

    FY2014 Earnings Forecast Consolidated Financial Position (Estimate) （¥Billion） End of Mar, 2014 End of Mar, 2015 (E) Difference Assets 2,173.6 2,189.0 + 15.3 Shareholders' Equity 746.0 772.0 + 25.9 Ratio of Shareholders‘ Equity (%) 34.3 35.3 + 0.9pts Interest Bearing Debts* 834.7 813,0 ‐ 217 ROA(%)

  33. Slide 33: Supplemental Reference

    Ⅳ. Supplemental Reference ©ANAHD2014 33

  34. Slide 34: Fuel Price and Exchange Rate Assumptions

    Supplemental Reference Fuel Price Assumptions ≪FY2014 Earnings Forecast Assumptions≫ （Not including hedge impact） Dubai Crude Oil ：US$107/bbl、 Kerosene：US$125/bbl 100% Hedge Ratio （As of 31 Mar, 2014） Fuel FuelCost Cost 80% US$1 US$1change change 65% per perbarrel barrel 60% 55% Non Nonhedge hedge 4

  35. Slide 35: FY2013 Impact of Foreign Exchange Rate

    Supplemental 燃油・為替 Reference FY2013 Impact of Foreign Exchange Rate (Operating income (loss) /including hedge effects; units: Billion Yen) Revenue Expense 1H (Earning Forecast as of 30 Apr, 2013 vs. Weighed Avg. during period) 2H (Earning Forecast as of 30 Oct, 2013 vs. Weighed Avg. during period) A

  36. Slide 36: International Passenger Results by Destination

    Supplemental Reference International Passenger Results FY13 4Q/FY13 Difference Difference by Destination Composition Composition North America 32.2 + 3.6 33.5 + 4.1 Europe 19.5 ‐ 1.7 17.5 ‐ 1.0 Revenue China 15.9 ‐ 0.8 15.7 ‐ 0.3 Asia 28.2 ‐ 0.5 29.3 ‐ 2.0 Resort 4.2 ‐ 0.6 4.0 ‐ 0.8 North America 35

  37. Slide 37: International Cargo Results by Destination

    Supplemental Reference International Cargo Results FY13 4Q/FY13 Difference Difference by Destination Composition Composition North America 21.9 + 2.0 22.7 + 2.7 Europe 14.5 ‐ 0.8 15.3 ‐ 0.1 Revenue China 36.3 ‐ 0.5 34.0 ‐ 1.2 Asia 20.3 ‐ 0.8 21.2 ‐ 1.3 Others 7.0 + 0.1 6.7 ‐ 0.1 North America 38.3 +

  38. Slide 38: Aircraft in Service

    Supplemental Reference Aircraft in Service Mar, 2013 Mar, 2014 Change Owned Leased Boeing 747-400 (Domestic) 5 1 -4 1 0 Boeing 777-300ER 19 19 － 16 3 Wide-Body Boeing 777-300 7 7 － 7 0 Boeing 777-200ER 10 12 +2 6 6 Boeing 777-200 16 16 － 14 2 Boeing 787-8 17 27 + 10 27 0 Boeing 767-300ER 26 26 － 6 2

  39. Slide 39: ANA Group Corporate Philosophy

    ANA Group Corporate Philosophy Mission Statement ANA Group Safety Principles  Safety is our promise to the public and Built on a foundation of security and trust, is the foundation of our business “the wings within ourselves”  Safety is assured by an integrated help to fulfill the hopes management

  40. Slide 40: Cautionary Statement

    Cautionary Statement Forward-Looking Statements. This material contains forward-looking statements based on ANA Holdings Inc.’s current plans, estimates, strategies, assumptions and beliefs. These statements represent the judgments and hypotheses of the Company’s management based on currently availa

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