Slide 1: Air China Limited 2011 Interim Results Under IFRS
Air China Limited 2011 Interim Results Under IFRS August 2011
Slide 2: Agenda
Agenda Part 1 Highlights Part 2 Business Overview Part 3 Financial Overview Part 4 Outlook 2
Slide 3: Part 1 Highlights
Part 1 Highlights 3
Slide 4: Highlights
Highlights Key Financial Metrics 2011 Interim YoY Change * Turnover（RMB million） 45,584 31.06% Operating Expenses（RMB million） 41,570 35.49% Net Profit（ RMB million ） 4,272 -9.31% Profits Attributable to Shareholders（ RMB million ） 4,056 -12.08% EPS（RMB/share） 0.33 -16.33% Key Operational Metrics 20
Slide 5: Part 2 Business Overview
Part 2 Business Overview 5
Slide 6: Passenger Services – Air China
Passenger Services – Air China Total 2011 Interim YoY Domestic 2011 Interim YoY Change Change Revenue （RMB million） 29,334.8 16.66% Revenue （RMB million） 19,078.2 20.65% ASK （million） 55,728.1 6.75% ASK （million） 32,899.1 4.00% RPK （million） 45,155.5 9.22% RPK （million） 27,144.4 10.06% Load Factor （
Slide 7: Demand-orientated Capacity Deployment to Further Improve Efficiency
Demand-orientated Capacity Deployment to Further Improve Efficiency 1H2011 Passenger Capacity and Traffic Changes 1H2011 Passenger Capacity Distribution Change 3.51% International Domestic Regional 59.03% 37.45% 1H2011 20% 15% 11% 12% 10% 10% 8% 3.49% 7% 5pts 4% 35.91% 5% 3pts 60.60% -3pts 1H2010 0%
Slide 8: Strengthen Hub and Network Operations
Strengthen Hub and Network Operations ● Transfer passenger traffic at Beijing hub reached 2.22 million, with 68.8% capacity input ration. 3 new international routes: Beijing - Düsseldorf, Beijing - Munich - Athens, Beijing - Milan launched ● Additional slots at Chengdu, T2 Terminal transfer desk and
Slide 9: More Scientific Sales Management and Diversified Marketing Efforts Leads to Sustained Improvement in Yield
More Scientific Sales Management and Diversified Marketing Efforts Leads to Sustained Improvement in Yield Quality Premium Class Revenue Continued Growth 42% Growth in E-commerce Revenue RMB 100 million RMB 100 million 8.00 40% 60 7.00 6.00 42 5.00 40 30 4.00 20% 3.00 20 2.00 1.00 0.00 0% 0 Jan Feb
Slide 10: Air China Cargo
Air China Cargo 2011 Interim 2010 Interim YoY Change AFTK (million) 3,740.6 3,589.8 4.20% Freighter AFTK (million) 1,362.4 1,289.2 5.67% RFTK (million) 2,189.3 2,125.3 3.01% Freighter RFTK (million) 1,087.1 1,058.0 2.75% Tonnage Carried (tonne) 570,438.5 544,505.3 4.76% Freighter Tonnage Carried (to
Slide 11: Shenzhen Airlines
Shenzhen Airlines 2011 Interim YoY Change ASK (million) 16,256.6 8.63% RPK (million) 13,280.7 11.81% ATK (million) 1,710.9 6.33% RTK (million) 1,377.0 12.00% Passengers carried (thousand) 9,255.9 6.00% Passenger load factor (%) 81.69% 2.32pts ATK load factor (%) 80.48% 4.07pts Passenger Yield (RMB/R
Slide 12: Air Macao
Air Macao 2011 Interim YoY Change ASK (million) 1,683.2 9.67% RPK (million) 1,047.4 -3.27% ATK (million) 203.6 10.54% RTK (million) 118.1 -6.50% Passengers carried (thousand) 649.7 -4.61% Passenger load factor (%) 62.22% -8.32pts ATK load factor (%) 58.01% -10.58pts Passenger Yield (RMB/RPK) 0.87 28
Slide 13: Part 3 Financial Overview
Part 3 Financial Overview 13
Slide 14: Ideal Performance Resulted from Effective Management
Ideal Performance Resulted from Effective Management (RMB million) 2011 Interim 2010 Interim YoY Growth Turnover 45,584 34,781 31.06% Air traffic revenue 43,502 33,090 31.47% Operating expenses 41,570 30,680 35.49% Operating expenses ex-fuel cost 25,318 20,067 26.17% Gain from change in fair value o
Slide 15: Enhancing Passenger and Cargo Services Synergy with Steady Growth of Core Business Revenue
Enhancing Passenger and Cargo Services Synergy with Steady Growth of Core Business Revenue Revenue Breakdown: RMB million Revenue Passenger Cargo Total YoY Change Breakdown Services YoY Change Services YoY Change Domestic 27,110 47.42% 958 5.72% 28,068 45.47% （%） 70.36 6.12pts 19.27 -1.03pts 64.52 6
Slide 16: Cost Pressure from Jet Fuel Price Surge
Cost Pressure from Jet Fuel Price Surge （RMB million） 1H2011 1H2010 YoY Change 1H2011 Jet fuel 16,251 10,613 53.13% Maintenance Gain/loss from change in fair -80 -721 -88.85% Depreciation 3.5% value 11.0% Staff Take-off, 13.3% Take-off, landing and depot Landing and 4,275 3,559 20.10% charges Depot
Slide 17: Higher Jet Fuel Cost with Uncertainties in Future Price Trend
Higher Jet Fuel Cost with Uncertainties in Future Price Trend Fuel Costs and Jet Fuel Surcharge RMB billion 30 20 10 0 2005 2006 2007 2008 2009 2010 1H2010 1H2011 Fuel Costs Jet Fuel Surcharge Changes in Jet Fuel Purchase Price Average Domestic International RMB/Tonne RMB/Tonne RMB/Tonne 2011 1H Ave
Slide 18: Enhanced Cost Efficiency
Enhanced Cost Efficiency Fuel Cost and Non-fuel operating Cost Unit Cost 71,560 RMB million RMB 62,715 5 60,000 4.28 24,096 47,485 22,614 45,892 4 3.54 42,416 41,570 3.46 3.29 3.04 3.18 2.98 40,000 17,201 14,466 30,680 3 15,716 16,251 2 47,464 10,613 20,000 40,101 0.68 30,284 31,426 1 0.51 0.53 0.47
Slide 19: Margins and Returns
Margins and Returns 1H2011 1H2010 YoY Change EBITDA (RMB million) 8,593 8,107 6.00% EBITDA margin 18.85% 23.31% -4.46pts EBITDAR (RMB million) 10,893 10,369 5.06% EBITDAR margin 23.90% 29.81% -5.91pts Operating profit margin 8.81% 11.79% -2.98pts Pre-tax profit margin 12.03% 15.71% -3.68pts Net prof
Slide 20: Financial Strength and Healthy Capital Structure
Financial Strength and Healthy Capital Structure Net Debt to Equity Ration Total Debt to Asset Ration (x) % 3 2.54 2.50 100 79.63 77.8 73.94 72.74 2 1.72 1.64 80 62.4 66.32 1.15 60 0.94 1 40 20 0 0 2006 2007 2008 2009 2010 1H2011 2006 2007 2008 2009 2010 1H2011 Net Assets EBITDA Interest Cover Ratio
Slide 21: Part 4 Outlook
Part 4 Outlook 21
Slide 22: 2011: Opportunities and Challenges
2011: Opportunities and Challenges Opportunities Challenges Stable growth of domestic economy Higher risk and uncertainties in global economy Twelfth five-year plan provides a favourable environment for development Intensified competition in domestic airline industry Gradual strengthening of th
Slide 23: Appendix Other Financial and Operational Data
Appendix Other Financial and Operational Data 23
Slide 24: Fleet – Air China
1 Fleet – Air China 30 Jun 2011 Delivery Sub- Finance Operating Average Owned 2011 2012 2013 total Lease Lease Age A319 33 21 9 3 6.24 - - - A320/A321 47 8 29 10 2.40 14 14 10 A330 26 6 17 3 3.19 5 6 7 A340 6 6 - - 13.06 - - - B737 129 57 22 50 7.63 9 9 11 B747 9 7 2 - 14.24 - - - B757 10 10 - - 16.
Slide 25: Fleet – Shenzhen Airlines
2 Fleet – Shenzhen Airlines 30 Jun 2011 Delivery Sub- Finance Operating Average Owned 2011 2012 2013 total Lease Lease Age A319 5 3 0 2 5.03 0 0 0 A320 43 30 3 10 2.38 9 8 7 B737 59 23 7 29 7.76 10 6 10 TOTAL 107 56 10 41 5.47 19 14 17 25
Slide 26: Consolidated Balance Sheet (Condensed)
3 Consolidated Balance Sheet (Condensed) (RMB million) 30 Jun 2011 31 Dec 2010 Change Non-current assets 102,900 96,153 7.02% – Aircraft 87,905 82,655 6.35% – Property 5,770 5,876 -1.82% Current assets 24,048 22,979 4.65% – Cash and cash equivalents 15,763 14,402 9.46% Total assets 167,519 158,774 5
Slide 27: Consolidated Cash Flow Statement (Condensed)
4 Consolidated Cash Flow Statement (Condensed) (RMB million) 2011 Interim 2010 Interim YoY Change Net cash flow from operating activities 9,310 6,909 34.76% Net cash flow from investing activities 9,224 5,041 82.98% Net cash flow from financing activities 293 716 -59.04% Net increase/(decrease) in c
Slide 28: Consolidated Liabilities Breakdowns
5 Consolidated Liabilities Breakdowns RMB million RMB USD HKD EURO Sub-total (as of June 30, 2011) denominated denominated denominated denominated Bank loans and 60,293 8,343 46,241 5,480 229 notes Finance lease 18,430 1,037 17,393 obligation Bond 9,000 9,000 Total 87,723 18,380 63,634 5,480 229 Wei
Slide 29: Investor Relations - Beijing
Investor Relations - Beijing Rao Xinyu Tel: +8610-6146 2777 Fax: +8610-6146 2805 E-mail: raoxinyu@airchina.com Wang Kai Tel: +8610-6146 2799 Fax: +8610-6146 2805 E-mail: kai@airchina.com Website: www.airchina.com.cn