Ana Holdings Inc. · TSE:9202

Ana — FY2014 Earnings Presentation

48 slides from Ana's earnings presentation, Apr 30, 2015

  1. Slide 1: Financial Results FY2014 ended March 31, 2015

    ANA HOLDINGS INC. Financial Results FY2014 ended March 31, 2015 Shinya Katanozaka President and CEO Yuji Hirako Senior Vice President and CFO April 30, 2015 ©ANAHD2015 1

  2. Slide 2: Contents

    Contents Part 1 . FY2014 Financial Results and . FY2015 Earnings Forecast Details FY2015 Earnings Forecast Consolidated Earnings Forecast P. 30 Outline of FY2014 Financial Results P. 4 Earnings Forecast by Segment P. 31 and FY2015 Earnings Forecast Air Transportation Business P. 32 Outline of FY2015

  3. Slide 3: Part 1 FY2014 Financial Results and FY2015 Earnings Forecast

    Part 1 . FY2014 Financial Results and FY2015 Earnings Forecast ©ANAHD2015 3

  4. Slide 4: Outline of FY2014 Financial Results and FY2015 Earnings Forecast

    Outline of FY2014 Financial Results and FY2015 Earnings Forecast (FY2014) Secured the highest operating revenues ever and outperformed the profit plan significantly (FY2015) Implement the annual plan steadily based on the current Mid-term Corporate Strategy and continually develop the growth strateg

  5. Slide 5: Outline of FY2015 ANA Group Network Plan

    Outline of FY2015 ANA Group Network Plan 【Int‟l Passenger / Int‟l Cargo】 Pursue competitiveness by continuing expansion on ASK/ATK 【Domestic Passenger】 Deepen optimization of demand/supply Trends of ASK/ATK and RPK/RTK（FY13=100） Initiatives for FY2015 （vs. FY14） 140 Approx. 129 Enhance dual-hub func

  6. Slide 6: FY2015 ANA Group Network Plan International Business

    FY2015 ANA Group Network Plan International Business Expand network by focusing on routes from/to Narita Improve transit function to capture trilateral traffic demand - Enhance dual-hub function on metropolitan area airports - Improve competitiveness on Int’l operations in Asia No.1 network carrier

  7. Slide 7: Major Approach of ANA Group in FY2015

    Major Approach of ANA Group in FY2015 Promote growth strategy while maintaining stability of financial condition Management function Stabilize management Business Strategy Growth of our group Financial Strategy as a holding company platform A. Air Transportation Business G. Corporate credit ratings

  8. Slide 8: Value Creation Goals

    Value Creation Goals Outperformed targets in the first fiscal year of the Mid-term Corporate Strategy Accelerate management speed for further value creation “Mid-term Corporate Strategy” (Released in ’14 Feb.) FY2014 FY2015 FY2016 EPS ¥ FY2014 FY2015 FY2016 EPS Forecast 18 (Right axis) Op. ¥14.88 16

  9. Slide 9: Part 2 FY2014 Financial Results Details

    Part2 . FY2014 Financial Results Details ©ANAHD2015 9

  10. Slide 10: Highlights of FY2014

    Highlights of FY2014 Highlights of Financial Results FY2014 Recorded a substantial increase in profit compared to the last fiscal year FY2014 Consolidated Results 4th Quarter (Jan.-Mar.) Ø Op. Income ¥ 91.5 Bn YoY + ¥25.5 Bn Ø Op. Income ¥ 2.2 Bn Ø Net Income ¥ 39.2 Bn YoY + ¥20.3 Bn Ø Net Income ¥

  11. Slide 11: Consolidated Financial Summary: Income Statements

    Consolidated Financial Summary Income Statements FY13 FY14 Difference 4Q/FY14 Difference Operating Revenues 1,570.1 1,713.4 + 143.3 416.2 + 35.3 Operating Expenses 1,504.1 1,621.9 + 117.7 413.9 + 30.0 Operating Income 65.9 91.5 + 25.5 2.2 + 5.3 Op. Margin (%) 4.2 5.3 + 1.1pts 0.5 Non-Op. Gains/Losse

  12. Slide 12: Consolidated Financial Summary: Financial Position

    Consolidated Financial Summary Consolidated Financial Position Mar 31, 2014 Mar 31, 2015 Difference (¥ Billion) Assets 2,173.6 2,302.4 + 128.8 Shareholders' Equity 746.0 798.2 + 52.2 Ratio of Shareholders‘ Equity (%) 34.3 34.7 + 0.3pts Interest Bearing Debts 834.7 819.8 - 14.9 Debt/Equity Ratio (tim

  13. Slide 13: Consolidated Statements of Cash Flow

    Consolidated Financial Summary Consolidated Statements of Cash Flow FY13 FY14 Difference Cash Flow from Operating Activities 200.1 206.8 + 6.7 Cash Flow from Investing Activities - 64.9 - 210.7 - 145.8 Cash Flow from Financing Activities - 85.5 - 30.4 + 55.1 Net Increase or Decrease 50.2 - 33.5 - 83

  14. Slide 14: Results by Segment

    Consolidated Financial Summary Results by Segment FY13 FY14 Difference 4Q/FY14 Difference Air Transportation 1,364.3 1,484.6 + 120.2 360.3 + 29.8 Airline Related 189.6 223.7 + 34.1 53.2 + 5.8 Travel Services 173.4 169.0 - 4.4 38.3 - 1.5 Operating Trade and Retail 110.2 127.0 + 16.7 32.0 + 4.5 Revenu

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

    Air Transportation Business Operating Revenues and Expenses FY13 FY14 Difference 4Q/FY14 Difference Domestic Passengers 675.1 683.3 + 8.2 160.0 + 3.1 International Passengers 395.3 468.3 + 72.9 114.1 + 16.2 Operating Cargo and Mail 145.5 166.9 + 21.4 40.7 + 3.8 Revenues Others 148.2 165.9 + 17.6 45.

  16. Slide 16: Changes in Operating Income

    Air Transportation Business Revenue from contracted Changes in Operating Income maintenance and handling Mileage/Card Depreciation except aircraft LCC Business, etc Other Maintenance, etc. Accounting change is applied as Expenses shown on footnote of P.11. Sales-Linked Commission +8.7 Advertisement

  17. Slide 17: Domestic Passenger Operations

    Air Transportation Business Domestic Passenger Operations Not including Vanilla Air FY13 FY14 % Y/Y 4Q/FY14 % Y/Y Available Seat Km (million) 61,046 60,213 - 1.4 14,574 - 0.3 Revenue Passenger Km (million) 37,861 38,582 + 1.9 9,317 + 2.9 Passengers (thousands) 42,668 43,203 + 1.3 10,322 + 2.2 Load F

  18. Slide 18: Trends in Domestic Passenger Operations

    Air Transportation Business Trends in Domestic Passenger Operations Not including Vanilla Air FY2014 Revenue Change Factors Trends of passengers by Segment and Unit Price üAchieved to increase revenues while controlling ASK for üExpanded capturing demand by flexible pricing management optimization o

  19. Slide 19: International Passenger Operations

    Air Transportation Business International Passenger Operations FY13 FY14 % Y/Y 4Q/FY14 % Y/Y Not including Vanilla Air Available Seat Km (million) 41,451 49,487 + 19.4 12,268 + 16.4 Revenue Passenger Km (million) 30,613 35,639 + 16.4 8,809 + 13.7 Passengers (thousands) 6,336 7,208 + 13.8 1,846 + 16.

  20. Slide 20: Trends in International Passenger Operations

    Air Transportation Business Trends in International Passenger Operations Not including Vanilla Air FY2014 Revenue Change Factors Trends of ASK, RPK and Yield üHighly achieved in revenues by capturing demand üIncreased both RPK and yield level steadily in-line with ASK expansion Index FY12 1Q=100 Mai

  21. Slide 21: Trends in International Passenger Operations by Destination

    Air Transportation Business Trends in International Passenger Operations Not including Vanilla Air Trends in ASK/RPK/Composition of Business Class Trends in ASK,RPK,L/F by Destination ü Business class passenger composition stayed in high level 200 100 200 100 North America Europe 90 90 Index FY10 1H

  22. Slide 22: Progress of Dual-hub Network Strategy

    Air Transportation Business Trends in International Passenger Operations Not including Vanilla Air Progress of “Dual-hub Network Strategy” Analysis based on different kinds of channel) üSecured demand from/to Japan üCaptured trilateral demand in Narita with Sales in Japan Sales in Overseas a tailwin

  23. Slide 23: Domestic Cargo Operations

    Air Transportation Business Domestic Cargo Operations FY13 FY14 % Y/Y 4Q/FY14 % Y/Y Available Ton Km (million) 1,973 1,883 - 4.6 449 - 4.3 Revenue Ton Km (million) 473 476 + 0.7 106 - 7.8 Revenue Ton (thousand tons) 477 475 - 0.3 105 - 8.7 Domestic Cargo Load Factor (%) 24.0 25.3 + 1.3pts* 23.8 - 0.

  24. Slide 24: Intentionally Blank

    Intentionally Blank ©ANAHD2015 24

  25. Slide 25: International Cargo Operations

    Air Transportation Business International Cargo Operations FY13 FY14 % Y/Y 4Q/FY14 % Y/Y Available Ton Km (million) 4,530 5,484 + 21.0 1,348 + 16.5 Revenue Ton Km (million) 2,937 3,608 + 22.8 876 + 13.6 Revenue Ton (thousand tons) 710 841 + 18.5 195 + 7.5 International Cargo Load Factor (%) 64.8 65.

  26. Slide 26: Trends in International Cargo Operations

    Air Transportation Business Trends in International Cargo Operations FY2014 Revenue Change Factors Trends of Traffic Results and Unit Price ü Captured steady demand, especially on trilateral cargo üTrend of unit price is in increase while expanding demand traffic demand, led to increase in revenues

  27. Slide 27: LCC Operations

    Air Transportation Business LCC Operations FY13* FY14 % Y/Y 4Q/FY14 % Y/Y Domestic and International Passenger Operations in Total Available Seat Km (million) 1,327 2,202 + 65.9 631 + 61.2 Revenue Passenger Km (million) 925 1,767 + 91.0 559 + 87.8 Passengers (thousands) 722 1,141 + 58.0 319 + 72.3 L

  28. Slide 28: Other Segments excluding Air Transportation Business

    Other Segments excluding Air Transportation Business Results by Segment Airline Related Travel Services FY13 FY14 Difference FY13 FY14 Difference (¥Billion) Op. Revenues 189.6 223.7 + 34.1 173.4 169.0 - 4.4 Op. Income 2.7 9.0 + 6.2 4.4 4.5 + 0.1 Depreciation and Amortization 3.2 4.6 + 1.4 0.0 0.0 +

  29. Slide 29: FY2015 Earnings Forecast Details

    . FY2015 Earnings Forecast Details ©ANAHD2015 29

  30. Slide 30: Consolidated Earnings Forecast

    FY2015 Earnings Forecast Consolidated Earnings Forecast FY14 FY15(E) Difference ¥ Billion Operating Revenues 1,713.4 1,790.0 + 76.5 Operating Expenses 1,621.9 1,675.0 + 53.0 Operating Income 91.5 115.0 + 23.4 Op. Margin (%) 5.3 6.4 + 1.1pts Recurring Income 67.1 90.0 + 22.8 Net Income 39.2 52.0 + 12

  31. Slide 31: Earnings Forecast by Segment

    FY2015 Earnings Forecast Earnings Forecast by Segment FY14 FY15(E) Difference ¥ Billion Air Transportation 1,484.6 1,545.0 + 60.4 Airline Related 223.7 235.0 + 11.2 Travel Service 169.0 175.0 + 5.9 Operating Trade and Retail 127.0 140.0 + 12.9 Revenues Total for Reporting Segments 2,004.4 2,095.0 +

  32. Slide 32: Air Transportation Business Forecast

    FY2015 Earnings Forecast Air Transportation Business FY14 FY15(E) Difference ¥ Billion Domestic Passengers 683.3 693.0 + 9.6 International Passengers 468.3 488.0 + 19.6 Operating Cargo and Mail 166.9 179.0 + 12.0 Revenues Others 165.9 185.0 + 19.0 Total 1,484.6 1,545.0 + 60.4 Fuel and Fuel Tax 367.6

  33. Slide 33: Passenger Operations Earnings Forecast Assumptions

    FY2015 Earnings Forecast Passenger Operations Earnings Forecast Assumptions for FY2015 vs. FY2014 Domestic Passengers International Passengers * : Difference ** : year-on-year basis 1H(E) 2H(E) FY15(E) 1H(E) 2H(E) FY15(E) Available Seat km - 2.6 - 1.3 - 2.0 + 6.3 + 14.6 + 10.4 Revenue Passenger km +

  34. Slide 34: Cargo Operations Earnings Forecast Assumptions

    FY2015 Earnings Forecast Cargo Operations Earnings Forecast Assumptions for FY2015 vs. FY2014 Domestic Cargo International Cargo * : Difference ** : year-on-year basis 1H(E) 2H(E) FY15(E) 1H(E) 2H(E) FY15(E) Available Ton km - 2.7 + 0.1 - 1.3 + 8.0 + 14.8 + 11.4 Revenue Ton km + 0.9 + 15.6 + 8.3 + 4

  35. Slide 35: Consolidated Financial Position (Estimate)

    Reference FY2015 Earnings Forecast Consolidated Financial Position (Estimate) Mar 31, 2015 Mar 31, 2016(E) Difference ¥ Billion Assets 2,302.4 2,242.0 - 60.4 Shareholders' Equity 798.2 838.0 + 39.7 Ratio of Shareholders‘ Equity (%) 34.7 37.4 + 2.7pts Interest Bearing Debts 819.8 726.0 - 93.8 Debt/Eq

  36. Slide 36: Consolidated Cash Flow (Estimate)

    Reference FY2015 Earnings Forecast Consolidated Cash Flow (Estimate) FY14 FY15(E) Difference ¥ Billion Net Income 39.2 52.0 + 12.7 Depreciation and Amortization 131.3 137.0 + 5.6 Principal Payment for Aircraft Lease 15.5 15.0 - 0.5 Cash Flow from Operating Activities * 222.4 224.0 + 1.5 Capital Expe

  37. Slide 37: Status of Fuel and Currency Hedging

    Status of Fuel and Currency Hedging Dubai Crude Oil / Kerosene FY2014 FY2015 Fuel Hedge Earnings Forecast Assumptions (US$/bbl) 107 / 125 67 / 85 FY14 Results (US$/bbl) 83.8 / 99.6 Not including hedge impact 100% 90% Hedge Ratio As of 31 Mar, 2015 Fuel Cost US$1 change 80% per barrel 60% 60% Non hed

  38. Slide 38: Impact of Foreign Currency

    Impact of Foreign Currency FY2014 Impact of Foreign Exchange Rate (Operating income (loss) /including hedge effects; units: Billion Yen) Earning Forecast as of 30 Apr, 2014 vs. Weighed Avg. during period Revenue Expense +100 +10.0 All Foreign Currencies ¥ 1.5 Bn USD +8.0 Profit Decreased ¥105→¥108.7

  39. Slide 39: Cost Restructuring and CASK

    Cost Restructuring and CASK of Air Transportation Business Enhance profitability and endurance by implementing “Cost Restructuring Initiatives” Cost Restructuring Initiatives Trends of CASK of Air Transportation Business Not including Vanilla Air Including Fuel Expenses Excluding Fuel Expenses Cost

  40. Slide 40: Intentionally Blank

    Intentionally Blank ©ANAHD2015 40

  41. Slide 41: Supplemental Reference

    . Supplemental Reference ©ANAHD2015 41

  42. Slide 42: Aircraft in Service

    Supplemental Reference Aircraft in Service Mar 31, 2014 Mar 31, 2015 Change Owned Leased Boeing 747-400 (Domestic) 1 0 -1 0 0 Boeing 777-300ER 19 20 +1 17 3 Boeing 777-300 7 7 7 0 Wide-Body Boeing 777-200ER 12 12 6 6 Boeing 777-200 16 16 14 2 Boeing 787-9 0 2 +2 2 0 Boeing 787-8 27 32 +5 30 2 Boeing

  43. Slide 43: International Passenger Results by Destination

    Supplemental Reference International Passenger Results FY14 4Q/FY14 by Destination Composition Difference Composition Difference North America 32.2 - 0.0 30.5 - 3.1 Europe 20.2 + 0.7 17.6 + 0.1 Revenue China 15.5 - 0.4 17.7 + 2.0 Asia 28.3 + 0.1 30.7 + 1.4 Resort 3.8 - 0.4 3.6 - 0.5 North America 35

  44. Slide 44: International Cargo Results by Destination

    Supplemental Reference International Cargo Results FY14 4Q/FY14 by Destination Composition Difference Composition Difference North America 24.6 + 2.7 30.1 + 7.4 Europe 14.6 + 0.0 14.8 - 0.5 Revenue China 33.0 - 3.4 29.1 - 4.9 Asia 21.4 + 1.1 20.1 - 1.2 Others 6.5 - 0.5 5.9 - 0.8 North America 35.0 -

  45. Slide 45: (MEMO)

    (MEMO) @©ANAHD2015 ANAT 45

  46. Slide 46: (MEMO)

    (MEMO) @©ANAHD2015 ANAT 46

  47. Slide 47: ANA Group Corporate Philosophy

    ANA Group Corporate Philosophy Mission Statement ANA Group Safety Principles ü 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 ü Safety is assured by an integrated help to fulfill the hopes management s

  48. Slide 48: 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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