Ana Holdings Inc. · TSE:9202

Ana — Q2 FY2013 Earnings Presentation

48 slides from Ana's earnings presentation, Oct 30, 2013

  1. Slide 1: Financial Results FY2013 Second Quarter

    ANA Holdings Inc. Financial Results FY2013 Second Quarter Shinichiro Ito President and CEO Kiyoshi Tonomoto Senior Executive Vice President and CFO October 30, 2013 ©ANA2013 1

  2. Slide 2: Contents

    Contents Ⅰ. FY2013 Financial Results Second Quarter, Ⅲ. FY2013 Earnings Forecast 《Details》 Full-Year Earnings Forecast and Towards Corporate Plan for Next Term Consolidated Earnings Forecast P.31 Financial Results FY2013 Earnings Forecast by Segment P.32 Second Quarter - Highlights P.4 Air Transport

  3. Slide 3: FY2013 Q2 Results, Full-Year Forecast and Towards Corporate Plan for Next Term

    Ⅰ. FY2013 Financial Results Second Quarter, Full-Year Earnings Forecast and Towards Corporate Plan for Next Term ©ANA2013 3

  4. Slide 4: Financial Results FY2013 Second Quarter - Highlights

    Financial Results FY2013 Second Quarter - Highlights Inability to completely eliminate profit decline factors existing since the beginning of the fiscal year resulted in increased revenues but decreased profits 《FY2013 First Half Results》 《Traffic Results for First Half》 Diff. vs. 1Q 2Q 1H 1H / Y13

  5. Slide 5: FY2013 Full-Year Earnings Forecast

    FY2013 Full-Year Earnings Forecast Conducted a downward revision for the full-year earnings forecast in light of 1H performance of both revenues and expenses Revised Earnings Forecast 《FY2013 Full-Year Earnings Forecast》 Initial Forecast Diff. vs. Diff. vs. (¥billion) Initial Plan FY12 Operating Rev

  6. Slide 6: Towards Corporate Plan for Next Term

    Towards Corporate Plan for Next Term Direction of the corporate plan remains unchanged; current direction will be applied toward organizing relevant issues 【Short-term perspective】 Holdings management Holdings management Considering the profit decline seen in current fiscal year, we will work to rec

  7. Slide 7: Towards Corporate Plan for Next Term

    Towards Corporate Plan for Next Term Initiatives toward issues related to stabilizing/improving air transportation business based on multi-brand strategy ◆Flexible control of ASK on domestic routes Domestic Passenger Full Full Service Service to achieve supply and demand balance and profitability A

  8. Slide 8: Optimal Network at Haneda & Narita

    Towards Corporate Plan for Next Term Utilize Haneda expansion of slots to create a complete near-term model for our Tokyo Metropolitan international route network 《Optimizing our international route network 》 《Number of international flights at Narita/Haneda 》 Optimal Network at Haneda & Narita Opt

  9. Slide 9: Towards Corporate Plan for Next Term: Cost Restructuring

    Towards Corporate Plan for Next Term Confirm benefits of cost restructuring (CASK reduction) and continue initiatives through to completion （¥） Incl. Incl. fuel fuel Rebuild Rebuild strategy strategyand and measures me asures toward measures towardcompletion completion -- 0.58 0.58 of cost restructu

  10. Slide 10: Towards Corporate Plan for Next Term: Strategic Investments

    Towards Corporate Plan for Next Term Improve group business platform through strategic investments, tie into expansion of business segments 【Pilot Training Business】 《Airline Related》 North America Base Non-group Non-group Establish Bangkok Base airlines Expand business business domain domain airlin

  11. Slide 11: FY2013 Financial Results Second Quarter Details

    Ⅱ. FY2013 Financial Results Second Quarter 《Details》 ©ANA2013 11

  12. Slide 12: Highlights FY2013 Second Quarter

    Highlights FY2013 Second Quarter Highlights of Financial Results FY13 1-2Q and FY12 1Q-4Q  Consolidated Cumulative operating income for 2Q posted 43.3 billion yen (31.9 billion yen year-on-year decrease).  Net Income of 20.0 billion yen (16.8 billion yen year-on-year decrease); EBITDA of 110.9 bil

  13. Slide 13: Consolidated Financial Summary: Income Statements

    Consolidated Financial Summary Income Statements 1H/FY12 1H/FY13 Difference 2Q/FY13 Difference Operating Revenues 753.2 797.6 + 44.4 439.2 + 29.2 Operating Expenses 677.9 754.3 + 76.4 390.3 + 44.5 Operating Income 75.3 43.3 - 31.9 48.9 - 15.2 Op. Margin (%) 10.0 5.4 - 4.6 11.1 - 4.5 Non-Op. Gains/Lo

  14. Slide 14: Consolidated Financial Position

    Consolidated Financial Summary Consolidated Financial Position Mar 31, 2013 Sept 30, 2013 Difference Assets 2,137.2 2,130.5 - 6.7 Shareholders' Equity 766.7 767.6 + 0.8 Ratio of Shareholders' Equity (%) 35.9 36.0 + 0.2 Interest Bearing Debts 897.1 854.9 - 42.1 Debt/Equity Ratio (times) * 1.2 1.1 - 0

  15. Slide 15: Consolidated Statements of Cash Flow

    Consolidated Financial Summary Consolidated Statements of Cash Flow 1H/FY12 1H/FY13 Difference Cash Flow from Operating Activities 123.7 133.7 + 10.0 Cash Flow from Investing Activities - 326.0 - 45.3 + 280.6 Cash Flow from Financing Activities 129.6 - 62.7 - 192.3 Net Increase or Decrease -72.7 25.

  16. Slide 16: Results by Segment

    Consolidated Financial Summary Results by Segment 1H/FY12 1H/FY13 Difference 2Q/FY13 Difference Air Transportation 657.1 696.4 + 39.3 384.1 + 26.2 Airline Related 87.4 93.0 + 5.6 47.3 + 2.0 Travel Services 84.3 90.7 + 6.3 54.3 + 4.7 Trade and Retail 49.2 53.8 + 4.5 27.3 + 2.7 Revenues Total for Repo

  17. Slide 17: Air Transportation Business: Operating Revenues and Expenses

    Air Transportation Business Operating Revenues and Expenses 1H/FY12 1H/FY13 Difference 2Q/FY13 Difference Domestic Passengers 343.0 344.3 + 1.2 196.9 + 3.1 International Passengers 179.7 196.5 + 16.7 107.0 + 10.4 Operating Cargo and Mail 60.7 68.5 + 7.8 34.8 + 4.9 Revenues Others 73.5 86.9 + 13.4 45

  18. Slide 18: Air Transportation Business: Changes in Operating Income

    Air Transportation Business ・Revenue from contracted Changes in Operating Income Maintenance and Handling ・Mileage/Card ･Depreciation except Aircraft Other ・LCC Business, etc. ･Maintenance, etc. (¥ Billion） Revenue ･Commission, Advertisement Cargo +13.4 +12.6 ･In- In-flight service ･Ground Handling,

  19. Slide 19: Domestic Passenger Operations

    Air Transportation Business Domestic Passenger Operations 1H/FY12 1H/FY13 % Y/Y 2Q/FY13 % Y/Y Available Seat Km (million) 29,727 31,141 + 4.8 16,231 + 4.9 Revenue Passenger Km (million) 18,336 18,950 + 3.4 10,454 + 4.1 Passengers (thousands) 20,773 21,370 + 2.9 11,679 + 3.6 Load Factor (%) 61.7 60.9

  20. Slide 20: Trends in Domestic Passenger Operations

    Air Transportation Business Trends in Domestic Passenger Operations (Does not include AirAsia Japan) Quarterly Trends in Domestic Passengers FY2013 1H Revenue Change Factors by Segment, Unit Price Revenues increased as a result of passenger factors, which  1H resulted in a year-on-year increase in

  21. Slide 21: International Passenger Operations

    Air Transportation Business International Passenger Operations 1H/FY12 1H/FY13 % Y/Y 2Q/FY13 % Y/Y Available Seat Km (million) 18,490 20,178 + 9.1 10,372 + 10.0 Revenue Passenger Km (million) 14,341 15,089 + 5.2 8,125 + 8.0 Passengers (thousands) 3,311 3,170 - 4.3 1,734 + 0.9 Load Factor (%) 77.6 74

  22. Slide 22: Trends in International Passenger Operations

    Air Transportation Business Trends in International Passenger Operations (Does not include AirAsia Japan) FY2013 1H Revenue Change Factors Quarterly ASK/RPK/ Yield Trends Although revenues in passenger factors decreased due RPK increased to a level consistent with ASK due to to stagnant demand rec

  23. Slide 23: Passenger Demand Trends on China Routes

    Air Transportation Business Trends in International Passenger Operations (Does not include AirAsia Japan) Trends in ASK/RPK Passenger Demand Trends on China Routes of International Routes by Destination Increased year on year due to strong business demand  In addition to China routes, RPK on route

  24. Slide 24: Domestic Cargo Operations

    Air Transportation Business Domestic Cargo Operations 1H/FY12 1H/FY13 % Y/Y 2Q/FY13 % Y/Y Available Ton Km (million) 975 1,006 + 3.2 534 + 4.7 Revenue Ton Km (million) 224 220 - 1.7 119 + 1.5 Revenue Ton (thousand tons) 226 223 - 1.3 121 + 1.9 Domestic Cargo Load Factor (%) 23.0 22.0 - 1.1pts* 22.4

  25. Slide 25: International Cargo Operations

    Air Transportation Business International Cargo Operations 1H/FY12 1H/FY13 % Y/Y 2Q/FY13 % Y/Y Available Ton Km (million) 1,927 2,169 + 12.6 1,144 + 16.6 Revenue Ton Km (million) 1,167 1,366 + 17.1 699 + 20.4 Revenue Ton (thousand tons) 293 334 + 13.8 171 + 16.4 International Cargo Load Factor (%) 6

  26. Slide 26: Trends in International Cargo Operations

    Air Transportation Business Trends in International Cargo Operations FY2013 1H Revenue Change Factors Quarterly Traffic Results and Unit Price Trends Following the first quarter, cargo revenue increased  Although Japanese import/export cargo volume has due to an improvement in unit prices improvem

  27. Slide 27: Other Segments excluding Air Transportation Business

    Other Segments excluding Air Transportation Business Results by Segment Airline Related Travel Services 1H/FY12 1H/FY13 Difference 1H/FY12 1H/FY13 Difference Revenues 87.4 93.0 + 5.6 84.3 90.7 + 6.3 Op. Income 3.0 3.7 + 0.6 3.0 2.7 - 0.2 Depreciation and Amortization 1.4 1.5 + 0.0 0.0 0.0 - 0.0 EBIT

  28. Slide 28: Intentionally Blank

    Intentionally Blank ©ANA2013 28

  29. Slide 29: FY2013 Earnings Forecast Details

    Ⅲ．FY2013 Earnings Forecast 《Details》 ©ANA2013 29

  30. Slide 30: Intentionally Blank

    Intentionally Blank ©ANA2013 30

  31. Slide 31: Consolidated Earnings Forecast

    FY2013 Earnings Forecast Consolidated Earnings Forecast FY12 FY13（RE） Difference FY13（E）* Operating Revenues 1,483.5 1,580.0 + 96.4 1,610.0 Operating Expenses 1,379.7 1,520.0 + 140.2 1,500.0 Operating Income 103.8 60.0 - 43.8 110.0 Op. Margin (%) 7.0 3.8 - 3.2 6.8 Recurring Income 76.9 30.0 - 46.9 8

  32. Slide 32: Earnings Forecast by Segment

    FY2013 Earnings Forecast Earnings Forecast by Segment FY12 FY13 (RE) Difference FY13（E）* Air Transportation 1,292.7 1,375.0 + 82.2 1,400.0 Airline Related 178.1 195.0 + 16.8 200.0 Travel Services 161.0 170.0 + 8.9 170.0 Trade and Retail 97.7 103.0 + 5.2 103.0 Revenues Total for Reporting Segments 1,

  33. Slide 33: Air Transportation Business: Operating Revenue and Expenses

    FY2013 Earnings Forecast Air Transportation Business (Operating Revenue and Expenses) FY12 FY13 (RE) Difference FY13（E）* Domestic Passengers 665.9 681.0 +15.0 688.5 International Passengers 348.3 377.5 + 29.1 397.5 Operating Revenues Cargo and Mail 126.2 147.0 + 20.7 149.5 Others 152.1 169.5 + 17.3

  34. Slide 34: Changes in Operating Income

    FY2013 Earnings Forecast Air Transportation Business (Changes in Operating Income) (¥ Billion） 1．Change in Revenues and Expenses 2．Main Factors of Earnings Forecast Revision Domestic Passenger Decrease in profit by increasing expenses -7.5 Revenues Decrease Yen Depreciation more than revenues in for

  35. Slide 35: Passenger Operations Earnings Forecast Assumptions

    FY2013 Earnings Forecast 《Passenger Operations》 Earnings Forecast Assumptions for FY13（vs. FY12） Domestic Passengers International Passengers Total 1H(A) 2H(RE) FY13(RE) 1H(A) 2H(RE) FY13(RE) Available Seat Km + 6.1 + 3.4 + 4.8 + 10.7 + 10.2 + 10.4 Revenue Passenger Km + 4.7 + 4.8 + 4.8 + 6.5 + 9.5

  36. Slide 36: Passenger Operations Earnings Forecast Assumptions (ANA Brand Only)

    FY2013 Earnings Forecast 《Passenger Operations》 Earnings Forecast Assumptions for FY13（vs. FY12） 【Included data in page 35】 Domestic Passengers International Passengers ANA Brand Only 1H(A) 2H(RE) FY13(RE) 1H(A) 2H(RE) FY13(RE) Available Seat Km + 4.8 + 3.8 + 4.3 + 9.1 + 9.3 + 9.2 Revenue Passenger

  37. Slide 37: Cargo Operations Earnings Forecast Assumptions

    FY2013 Earnings Forecast 《Cargo Operations》 Earnings Forecast Assumptions for FY13（vs. FY12） Domestic Cargo International Cargo １H(A) 2H(RE) FY13(RE) １H(A) 2H(RE) FY13(RE) Available Ton km + 3.2 + 4.4 + 3.8 + 12.6 + 16.7 + 14.7 Revenue Ton km - 1.7 + 2.1 + 0.3 + 17.1 + 17.3 + 17.2 Revenue Ton - 1.3

  38. Slide 38: Supplemental Reference

    Ⅳ. Supplemental Reference ©ANA2013 38

  39. Slide 39: Fuel & Exchange

    Supplemental Supplemental Reference Reference Fuel & Exchange 1H results 2H assumptions Dubai Crude Oil US$103.5 US$102 Fuel Kerosene US$119.7 US$120 100% 90% Hedge Ratio （As of Sept 30, 2013） Fuel FuelCost Cost 80% 70% (US$1 (US$1change change 60% per perbarrel) barrel) 50% 40% 40% 30% Non Non hedg

  40. Slide 40: FY2013 Impact of Foreign Exchange Rate

    Supplemental 燃油・為替 Reference (operating income (loss) /including hedge effects; units: billion yen) FY2013 Impact of Foreign Exchange Rate Revenue Expense First Half Results (Earning Forecast as of 30 Apr, 2013 vs. Weighed Avg. during period) All Currencies Currencies USD Other Currencies 1.9 Bn Yen

  41. Slide 41: International Passenger Results by Destination

    Supplemental Reference International Passenger Results by Destination 1H/FY13 2Q/FY13 Difference Difference Composition Composition （Does not Include AirAsia Japan） North America 31.2 + 3.7 31.3 + 3.8 Europe 20.9 - 1.3 20.6 - 2.2 Revenue China 16.4 - 1.9 17.0 - 0.5 Asia 27.2 - 0.1 26.4 - 0.3 Resort

  42. Slide 42: International Cargo Results by Destination

    Supplemental Reference International Cargo Results by Destination 1H/FY13 2Q/FY13 Difference Difference Composition Composition North America 21.1 + 1.3 21.2 + 2.1 Europe 14.5 - 0.9 14.2 - 1.1 Revenue China 37.2 - 0.6 37.5 - 2.1 Asia 20.0 - 0.5 20.1 + 0.6 Others 7.2 + 0.6 7.0 + 0.4 North America 37.

  43. Slide 43: Aircraft in Service

    Supplemental Reference Aircraft in Service Mar, 2013 Sep, 2013 Change Owned Leased Boeing 747-400 (Domestic) 5 4 -1 4 0 Boeing 777-300ER 19 19 - 16 3 Wide-Body Boeing 777-300 7 7 - 7 0 Boeing 777-200ER 10 12 +2 7 5 Boeing 777-200 16 16 - 14 2 Boeing 787-8 17 23 +6 23 0 Boeing 767-300ER 26 26 - 6 20

  44. Slide 44: 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

  45. Slide 45: Intentionally Blank

    Intentionally Blank ©ANA2013 45

  46. Slide 46: Intentionally Blank

    Intentionally Blank ©ANA2013 46

  47. Slide 47: 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

  48. Slide 48: 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 ©ANA2013 (Our company name, department name, and mail addre

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