Ana Holdings Inc. · TSE:9202

Ana — Investor Presentation (February 2014)

32 slides from Ana's investor presentation, Feb 14, 2014

  1. Slide 1: FY2014-16 ANA Group Corporate Strategy

    ANA Holdings Inc. FY2014-16 ANA Group Corporate Strategy Shinichiro Ito President and CEO Kiyoshi Tonomoto Senior Executive Vice President and CFO February 14, 2014 ©ANAHD2014 1

  2. Slide 2: Contents

    Contents Ⅰ. FY2014-16 ANA Group Ⅱ. FY2014-16 ANA Group Corporate Strategy Corporate Strategy Targets Environmental Awareness of Corporate Strategy Consolidated Profit Plan P.20 P.4-5 Profit Targets by Segment P.21 Major Initiatives Air Transportation Business P.22 1) Enhancement and Development of P

  3. Slide 3: I. FY2014-16 ANA Group Corporate Strategy

    Ⅰ. FY2014-16 ANA Group Corporate Strategy ©ANAHD2014 3

  4. Slide 4: Environmental Awareness of Corporate Strategy

    Environmental Awareness of Corporate Strategy Under the stable economic growth, Air Transportation Business move into the age of tough competition Outlook Assumed Environment of FY2014-16 Corporate Strategy Outlook of of Macroe Macroeconomy Macroeconomy FY2013 FY2014 FY2015 FY2016 （IMF WEO, Jan.2014

  5. Slide 5: Environmental Awareness of Corporate Strategy

    Environmental Awareness of Corporate Strategy In light of accomplishment through 2012 and the issues we faced in 2013, we focus on our growth strategy 《FY2011-12》 《FY2011-12》 《FY2013》 《FY2013》 《FY2014-2016》 《FY2014-2016》 Op. Op. Income Income Issues Issues faced faced Profit Op. Op. Income Income Ta

  6. Slide 6: Major Initiatives ① Enhancement and Development of Revenue Platforms

    Major Initiatives ① Major Initiatives ① Enhancement Enhancement and and Development Development of of Revenue Revenue Platforms Platforms While working to enhance the profitability of our air transportation business, we will expand the profit contribution scales of each business segment 10.0%  Airl

  7. Slide 7: Major Initiatives ② Expansion and Diversification of Revenue Domains

    Major Initiatives ② Major Initiatives ② Expansion Expansion and and Diversification Diversification of of Revenue Revenue Domains Domains Combine the group business development and strategic investments to expand and diversify profit domains Strategic Strategic investment investment will will promot

  8. Slide 8: Major Initiatives ③ Brand New Cost Restructuring Initiatives

    Major Initiatives ③ Major Initiatives ③ Brand Brand New New Cost Cost Restructuring Restructuring Initiatives Initiatives Continue cost reductions while progressing further with structural reforms to enhance profitability - 20.0 FY2011-14 FY2011-14 FY2014-16 FY2014-16 ¥100.0Bn ¥100.0BnCost CostRestr

  9. Slide 9: Business Strategies (Domestic Passenger Operations)

    Business Strategies（Domestic Passenger Operations） In light of market trends and competition, seek to adjust supply and demand and establish an optimal operating structure to maintain profit base  Pursuit of supply and demand adjustments to maintain and improve load factor Use business domain segme

  10. Slide 10: Intentionally Blank

    Intentionally Blank ©ANAHD2014 10

  11. Slide 11: Business Strategies (International Passenger Operations)

    Business Strategies（International Passenger Operations） Establish competitive advantage under the expansion of Tokyo Metropolitan area airports and international passenger operations as a driver of growth  Largest international service carrier in Haneda airport Take advantage of Haneda convenience

  12. Slide 12: Business Strategies (International Passenger Operations)

    Business Strategies（International Passenger Operations） Optimal route development to take advantage of Haneda route convenience and Narita network 《European Route》 Convenient access in Haneda LHR CDG FRA FY13E AM FY14E ASK Composition FRA CDG LHR DUS ASK Composition 16.0% MUC 30.3% PM 84.0% CDG 69.7

  13. Slide 13: Business Strategies (International Cargo Operations)

    Business Strategies（International Cargo Operations） Use freighter network to cover growth in Asian market and expand into global distribution  Strengths of combination carrier Utilize combination of freighters and passenger aircraft that allows ANA Cargo to drive business as a comprehensive distrib

  14. Slide 14: Business Strategies (LCC Business)

    Business Strategies （LCC Business） Capture strong latent demand of LCC business through rebuilding Narita LCC business and achieve success with Kansai LCC  Growth of low- low-cost carrier market in Japan In addition to the three domestic LCCs, continued market entry in the Japanese market by overse

  15. Slide 15: Revenues and Profit Plan

    Revenues and Profit Plan Link top line growth to profit expansion and aim to break past profit records again (¥Billion) 《Op. Revenues/Op. Income/Net Income/Op. Income Margin (Consolidated)》 2,000.0 1,850.0 1,800.0 1,700.0 1,780.0 (%) 1,600.0 1,580.0 (Left Axis) 10.0 Op.Revenues 6.2% 7.0% Op. Income

  16. Slide 16: Cash Flows / Capital Expenditures Plan / Balance Sheet

    Cash Flows / Capital Expenditures Plan / Balance Sheet Secure cash flow and maintain financial stability while continuing with aircraft investments that support expansion of business scale 《Cash Flows》 （¥Billion） 《Capital Expenditures》 250.0 （¥Billion） FY13E FY14E FY15E FY16E 200.0 97.0 82.0 74.0 C/

  17. Slide 17: Management Financial Targets

    Management Financial Targets During the current plan period, aim to bring medium-term value creation goals back into view （¥Billion） FY14E FY15E FY16E FY16 Forecast Medium-term Op. Revenues 1,700.0 1,700.0 1,780.0 1,780.0 1,850.0 1,850.0 value creation goals Liabilities Liabilities Op. Income 85.0 8

  18. Slide 18: Reference: 3 letter airport codes

    【Reference】 3 letter codes MUC ・・・ Munich FRA ・・・ Frankfurt CDG ・・・ Paris LHR ・・・ London DUS ・・・ Düsseldorf HKG ・・・ Hong Kong CGK ・・・ Jakarta SIN ・・・ Singapore BKK ・・・ Bangkok SGN ・・・ Ho Chi Minh City MNL ・・・ Manila ©ANAHD2014 18

  19. Slide 19: II. FY2014-16 ANA Group Corporate Strategy Targets

    II. FY2014-16 ANA Group Corporate Strategy Targets ©ANAHD2014 19

  20. Slide 20: Consolidated Profit Plan

    Consolidated Profit Plan Consolidated Profit Plan FY13(E)* FY14(E) Difference FY15(E) Difference FY16(E) Difference Operating Revenues 1,580.0 1,700.0 + 120.0 1,780.0 + 80.0 1,850.0 + 70.0 Operating Expenses 1,520.0 1,615.0 + 95.0 1,670.0 + 55.0 1,720.0 + 50.0 Operating Income 60.0 85.0 + 25.0 110.0

  21. Slide 21: Profit Targets by Segment

    Profit Targets by Segment Profit Targets by Segment FY13(E)* FY14(E) Difference FY15(E) Difference FY16(E) Difference Air Transportation 1,375.0 1,500.0 + 125.0 1,575.0 + 75.0 1,635.0 + 60.0 Airline Related 195.0 198.0 + 3.0 202.0 + 4.0 205.0 + 3.0 Travel Service 170.0 175.0 + 5.0 180.0 + 5.0 190.0

  22. Slide 22: Air Transportation Business (Operating Income Plan)

    Air Transportation Business ( Operating Income Plan ) Operating Income Plan FY13(E)* FY14(E) Difference FY15(E) Difference FY16(E) Difference Domestic Passengers 681.0 693.0 + 12.0 685.5 - 7.5 677.0 - 8.5 International Passengers 377.5 451.0 + 73.5 500.0 + 49.0 548.5 + 48.5 Operating Cargo and Mail

  23. Slide 23: Air Transportation Business (Income and Profit Plan, Trends of ASK/ATK)

    Air Transportation Business ( Income and Profit Plan, Trends of ASK/ATK ) Domestic Passenger Operations ：Implement flexibility of optimizing supply and demand to pursue efficient operations (Maintain the revenue stream) International Passenger Operations ：Expand the business scale to be a mid-term g

  24. Slide 24: Cost Reduction Initiatives

    Cost Reduction Initiatives -Of the current “¥100Bn Cost Restructuring Plan,” Plan,” ¥86.0Bn in reductions (equivalent to Unit Cost ¥-0.9) 0.9) by the end of FY2014 -Continue to work toward total of ¥50.0Bn (equivalent to Unit Cost ¥-0.6) 0.6) as additional reductions during FY2015- FY2015-16 Current

  25. Slide 25: Revenue Plan by Segment

    Revenue Plan by Segment Revenue Plan 《Passenger Operations》 Not including VanillaAir (ex-AirAsia Japan) ** : Difference Domestic Passengers International Passengers *** : year-on-year basis FY13(E)* FY14(E) FY15(E) FY16(E) FY13(E)* FY14(E) FY15(E) FY16(E) Available Seat km + 4.4 - 1.0 - 1.8 - 1.3 +

  26. Slide 26: Revenue Plan by Segment

    Revenue Plan by Segment Revenue Plan 《Cargo Operations》 Domestic Cargo International Cargo ** : Difference *** : year-on-year basis FY13(E)* FY14(E) FY15(E) FY16(E) FY13(E)* FY14(E) FY15(E) FY16(E) Available Ton km + 3.8 - 8.2 - 4.5 - 1.7 + 14.8 + 18.9 + 10.2 + 8.3 Revenue Ton km + 1.7 - 1.5 + 4.3 +

  27. Slide 27: Consolidated Balance Sheet

    Consolidated Balance Sheet Consolidated Balance Sheet / Financial Targets (Plan) FY13(E)* FY14(E) Difference FY15(E) Difference FY16(E) Difference Assets 2,033.0 2,036.0 + 3.0 2,078.0 + 42.0 2,107.0 + 29.0 Shareholders' Equity 763.0 784.0 + 21.0 817.0 + 33.0 864.0 + 47.0 Ratio of Shareholders‘ Equit

  28. Slide 28: Consolidated Cash Flows

    Consolidated Cash Flows Consolidated Cash Flows (Plan) FY13(E)* FY14(E) Difference FY15(E) Difference FY16(E) Difference Net Income 15.0 30.0 + 15.0 45.0 + 15.0 60.0 + 15.0 Depreciation and Amortization 134.0 145.0 + 11.0 151.0 + 6.0 154.0 + 3.0 Principal Payment for Aircraft Lease 14.0 15.0 + 1.0 1

  29. Slide 29: Fuel Price and Exchange Rate

    Fuel Price and Exchange Rate Fuel Price& Exchange Rate Assumptions FY14(E) FY15(E) FY16(E) Dubai Crude Oil US$107/bbl US$107/bbl US$112/bbl Kerosene US$125/bbl US$125/bbl US$130/bbl 100% 90% Hedge Ratio （As of 31 Dec, 2013） Fuel Cost 80% US$1 change 70% per barrel 55% 60% 45% Non hedge 50% Impact of

  30. Slide 30: 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

  31. Slide 31: Cautionary Statement

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

  32. Slide 32: Thank you.

    Thank you. This material is available on our website. http://www.anahd.co.jp/en （Our website has been renewed） Investor Relations IR Library Presentations Investor Relations, ANA Holdings Inc. Phone +81-(0)3-6735-1030 E-Mail: ir@anahd.co.jp (Our company name, department name, and mail address have c

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