Ana Holdings Inc. · TSE:9202

Ana — Q2 FY2014 Earnings Presentation

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

  1. Slide 1: Financial Results FY2014 Second Quarter

    ANA HOLDINGS INC. Financial Results FY2014 Second Quarter Shinichiro Ito President and CEO Kiyoshi Tonomoto Senior Executive Vice President and CFO October 30, 2014 ©ANAHD2014 1

  2. Slide 2: Contents

    Contents . Financial Results FY2014 Second Quarter . Supplemental Reference Financial Results FY2014 Second Quarter P.4 Fuel and Exchange Rate P.32 Status of Air Transportation Business Composition of International P.33 (1) Domestic Passenger Business P.5 Passengers Results by Destination (2) Intern

  3. Slide 3: Part 1: Financial Results FY2014 Second Quarter

    Part1 . Financial Results FY2014 Second Quarter ©ANAHD2014 3

  4. Slide 4: Financial Results FY2014 Second Quarter

    Financial Results FY2014 Second Quarter Air transportation business led increase revenues and earnings significantly Financial Results of FY2014 1st Half (Consolidated) Trends of Op. Income (1st Half) Diff. vs Op. Income (¥Billion) 1H FY13/1H YoY ¥50.1Bn ¥75.3Bn ¥43.3Bn ¥57.9Bn (¥Bn) Op. Revenues 85

  5. Slide 5: Status of Air Transportation Business: Domestic Passenger Business

    Status of Air Transportation Business (1) Domestic Passenger Business Increased in revenues by stimulating demand while optimizing ASK Results Results of of FY14 FY14 1H 1H Assignment Assignment for for FY14 FY14 2H 2H  Promote “optimization on demand and supply”  Progress “optimization on demand

  6. Slide 6: Status of Air Transportation Business: International Passenger Business

    Status of Air Transportation Business (2) International Passenger Business Maintained yield levels while expanding ASK to secure strong demand Results Results of of FY14 FY14 1H 1H Assignment Assignment for for FY14 FY14 2H 2H  Expand ASK by utilizing additional slots at Haneda  Enhance competitiv

  7. Slide 7: Our Group's Main Initiatives of FY2014 First Half

    Our Group’s Main Initiatives of FY2014 First Half The management function as a holding company is producing benefits in terms of both “business” and “financial” strategies Business Strategy Financial Strategy AAnew newcompany companyfor forinbound inbounddemand demand ((ininNov Nov)) Implement Imple

  8. Slide 8: Progress of FY2014-16 ANA Group Corporate Strategy

    Progress of “FY2014-16 ANA Group Corporate Strategy” Implement Business Portfolio Strategy steadily under a holding company structure FY2014 FY2014 FY2015 FY2015 -- 16 16 Op. Income Advance “optimization on demand/supply” demand/supply” Major MajorInitiatives Initiatives Op. Income ¥¥130.0 130.0Bn B

  9. Slide 9: Part 2: Financial Results FY2014 Second Quarter Details

    Part2 . Financial Results FY2014 Second Quarter Details ©ANAHD2014 9

  10. Slide 10: Highlights of FY2014 Second Quarter

    Highlights of FY2014 Second Quarter Highlights of Financial Results FY14 1Q-2Q and FY13 1Q-4Q Achieved significant earnings year-on-year comparison FY2014 1Q-2Q Cumulative Results(Consolidated 2nd Quarter Jul.-Sep.  Op. Income ¥ 57.9 Bn YoY ¥ +14.6Bn  Op. Income ¥57.5Bn  Net Income ¥ 35.7 Bn YoY

  11. Slide 11: Consolidated Financial Summary: Income Statements

    Consolidated Financial Summary Income Statements 1H/FY13 1H/FY14 Difference 2Q/FY14 Difference Operating Revenues 783.1 854.8 + 71.6 467.9 + 36.3 Operating Expenses 739.8 796.8 + 56.9 410.4 + 27.6 Operating Income 43.3 57.9 + 14.6 57.5 + 8.6 Op. Margin (%) 5.5 6.8 + 1.2pts 12.3 + 1.0pts Non-Op. Gain

  12. Slide 12: Consolidated Financial Position

    Consolidated Financial Summary Consolidated Financial Position Mar 31, 2014 Sep 30, 2014 Difference Assets 2,173.6 2,276.3 + 102.7 Shareholders' Equity 746.0 798.7 + 52.6 Ratio of Shareholders‘ Equity (%) 34.3 35.1 + 0.8pts Interest Bearing Debts 834.7 869.3 + 34.5 Debt/Equity Ratio (times)* 1.1 1.1

  13. Slide 13: Consolidated Statements of Cash Flow

    Consolidated Financial Summary Consolidated Statements of Cash Flow 1H/FY13 1H/FY14 Difference Cash Flow from Operating Activities 133.7 122.2 - 11.5 Cash Flow from Investing Activities - 45.3 - 156.2 - 110.8 Cash Flow from Financing Activities - 62.7 22.1 + 84.8 Net Increase or Decrease 25.8 - 11.7

  14. Slide 14: Results by Segment

    Consolidated Financial Summary Results by Segment 1H/FY13 1H/FY14 Difference 2Q/FY14 Difference Air Transportation 682.0 742.2 + 60.1 407.0 + 30.5 Airline Related 93.0 108.9 + 15.8 55.3 + 7.9 Travel Services 90.7 89.0 - 1.7 52.3 - 2.0 Trade and Retail 53.8 61.3 + 7.5 31.3 + 3.9 Revenues Total for Re

  15. Slide 15: Operating Revenues and Expenses

    Air Transportation Business Operating Revenues and Expenses 1H/FY13 1H/FY14 Difference 2Q/FY14 Difference Domestic Passengers 344.3 345.8 + 1.5 197.4 + 0.5 International Passengers 196.5 235.7 + 39.2 126.5 + 19.4 Operating Cargo and Mail 68.5 80.3 + 11.7 41.1 + 6.3 Revenues Others 72.5 80.1 + 7.6 41

  16. Slide 16: Air Transportation Business: Changes in Operating Income

    Air Transportation Business Depreciation except Aircraft Changes in Operating Income Revenue from contracted Maintenance and handling Maintenance, etc. Mileage/Card Other LCC Business, etc Commission Accounting change is applied as Expense Sales-Linked Advertisement In-flight service shown on footno

  17. Slide 17: Domestic Passenger Operations

    Air Transportation Business Domestic Passenger Operations 1H/FY13 1H/FY14 % Y/Y 2Q/FY14 % Y/Y Available Seat Km (million) 31,141 30,647 - 1.6 15,808 - 2.6 Revenue Passenger Km (million) 18,950 19,293 + 1.8 10,504 + 0.5 Passengers (thousands) 21,370 21,675 + 1.4 11,704 + 0.2 Load Factor (%) 60.9 63.0

  18. Slide 18: Trends in Domestic Passenger Operations

    Air Transportation Business Trends in Domestic Passenger Operations Not including Vanilla Air/previously AirAsia Japan FY14 1H Revenue Change Factors Trends of passengers by Segment and Unit Price  Increased revenues while controlling ASK. Maximized revenues by both raising fare and setting promot

  19. Slide 19: International Passenger Operations

    Air Transportation Business International Passenger Operations 1H/FY13 1H/FY14 % Y/Y 2Q/FY14 % Y/Y Available Seat Km (million) 20,178 24,718 + 22.5 12,444 + 20.0 Revenue Passenger Km (million) 15,089 18,025 + 19.5 9,553 + 17.6 Passengers (thousands) 3,170 3,591 + 13.3 1,901 + 9.6 Load Factor (%) 74.

  20. Slide 20: Trends in International Passenger Operations

    Air Transportation Business Trends in International Passenger Operations Not including Vanilla Air/previously AirAsia Japan FY14 1H Revenue Change Factors Trends of ASK, RPK and Yield  Significant expansion of ASK led to achieve in steady  Captured demand while keeping a certain yield level. deman

  21. Slide 21: Trends in ASK/RPK by Destination

    Air Transportation Business Trends in International Passenger Operations Not including Vanilla Air/previously AirAsia Japan Trends in ASK/RPK/Composition of Business Class Trends in ASK/RPK by Destination Composition of passengers on business class is still in high level. North America Europe Index

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

    Air Transportation Business Trends in International Passenger Operations Not including Vanilla Air/previously AirAsia Japan Progress of “Dual-hub Network Strategy” Analysis based on different kinds of channel) Capture domestic demand broadly Both Narita and Haneda cover the Sales in Japan Sales in

  23. Slide 23: Domestic Cargo Operations

    Air Transportation Business Domestic Cargo Operations 1H/FY13 1H/FY14 % Y/Y 2Q/FY14 % Y/Y Available Ton Km (million) 1,006 963 - 4.2 501 - 6.1 Revenue Ton Km (million) 220 236 + 7.2 125 + 4.7 Revenue Ton (thousand tons) 223 236 + 5.8 125 + 3.5 Domestic Cargo Load Factor (%) 22.0 24.6 + 2.6pts* 24.9

  24. Slide 24: Intentionally Blank

    Intentionally Blank ©ANAHD2014 24

  25. Slide 25: International Cargo Operations

    Air Transportation Business International Cargo Operations 1H/FY13 1H/FY14 % Y/Y 2Q/FY14 % Y/Y Available Ton Km (million) 2,169 2,742 + 26.4 1,398 + 22.2 Revenue Ton Km (million) 1,366 1,801 + 31.8 909 + 30.0 Revenue Ton (thousand tons) 334 428 + 28.2 216 + 26.0 International Cargo Load Factor (%) 6

  26. Slide 26: Trends in International Cargo Operations

    Air Transportation Business Trends in International Cargo Operations FY14 1H Revenue Change Factors Trends of Traffic Results and Unit Price  Increased revenues significantly by capturing demand. Expanded cargo volume especially on trilateral traffic. YoY % (*) Japan Aircargo Forwarders Associatio

  27. Slide 27: LCC Operations

    Air Transportation Business LCC Operations 1H/FY13* 1H/FY14 % Y/Y 2Q/FY14 % Y/Y Domestic and International Passenger Operations in Total Available Seat Km (million) 837 1,098 + 31.1 602 + 26.2 Revenue Passenger Km (million) 554 820 + 47.8 524 + 46.5 Passengers (thousands) 484 570 + 17.6 371 + 24.0 L

  28. Slide 28: Intentionally Blank

    Intentionally Blank ©ANAHD2014 28

  29. Slide 29: Other Segments excluding Air Transportation Business

    Other Segments excluding Air Transportation Business Results by Segment Airline Related Travel Services 1H/FY13 1H/FY14 Difference 1H/FY13 1H/FY14 Difference (¥Billion) Revenues 93.0 108.9 + 15.8 90.7 89.0 - 1.7 Op. Income 3.7 5.2 + 1.5 2.7 2.7 - 0.0 Depreciation and Amortization 1.5 2.2 + 0.7 0.0 0

  30. Slide 30: Intentionally Blank

    Intentionally Blank ©ANAHD2014 30

  31. Slide 31: Supplemental Reference

    . Supplemental Reference ©ANAHD2014 31

  32. Slide 32: Fuel Hedge and Currency Hedge

    Supplemental Reference FY2014 Dubai Crude Oil Kerosene Fuel Hedge Earnings Forecast Assumptions US$107/bbl US$125/bbl 1H Results US$103.8/bbl US$118.2/bbl Not including hedge impact 100% 85% Hedge Ratio As of 30 Sep, 2014 Fuel FuelCost Cost 80% US$1 US$1change change per perbarrel barrel 60% 45% Non

  33. Slide 33: Composition of International Passenger Results by Destination

    Supplemental Reference Composition of International Passenger Results 1H/FY14 2Q/FY14 Difference Difference by Destination Composition Composition North America 33.2 + 2.1 33.1 + 1.8 Europe 21.5 + 0.6 22.2 + 1.6 Revenue China 14.8 - 1.6 14.8 - 2.2 Asia 26.6 - 0.6 25.6 - 0.9 Resort 3.9 - 0.5 4.3 - 0.

  34. Slide 34: Composition of International Cargo Results by Destination

    Supplemental Reference Composition of International Cargo Results 1H/FY14 2Q/FY14 Difference Difference by Destination Composition Composition North America 21.8 + 0.7 22.1 + 1.0 Europe 14.6 + 0.1 14.2 - 0.1 Revenue China 34.4 - 2.8 34.4 - 3.1 Asia 22.3 + 2.4 22.7 + 2.7 Others 6.9 - 0.3 6.6 - 0.4 No

  35. Slide 35: Aircraft in Service

    Supplemental Reference Aircraft in Service Mar 31, 2014 Sep 30, 2014 Change Owned Leased Boeing 747-400 (Domestic) 1 0 -1 0 0 Boeing 777-300ER 19 19 16 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 31 +4 30 1 Boeing 76

  36. Slide 36: (MEMO)

    (MEMO) ©ANAHD2014 ANA 36

  37. Slide 37: (MEMO)

    (MEMO) ©ANAHD2014 ANA 37

  38. Slide 38: (MEMO)

    (MEMO) ©ANAHD2014 ANA 38

  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 s

  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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