Ana Holdings Inc. · TSE:9202

Ana — All Nippon Airways — Investor Presentation (February 2012)

36 slides from Ana's investor presentation, February 2012

  1. Slide 1: ANA 2012-13 Corporate Plan

    ANA 2012-13 Corporate Plan All Nippon Airways February, 2012 ©ANA2012 1

  2. Slide 2: Contents

    Contents Contents I. ANA 2012-13 Corporate Plan II. ANA 2012-13 Corporate Plan Targets Overview P.4 Consolidated Profit Plan P.20 Business Environment P.5-6 Profit Targets by Segment P.21 Air Transportation Business P.22-23 【Fiscal 2012-13 Corporate Plan】 ¥100 Billion Cost Reduction Initiatives P.24

  3. Slide 3: I. ANA 2012-13 Corporate Plan

    I. ANA 2012-13 Corporate Plan ©ANA2012 3

  4. Slide 4: Overview: Fiscal 2012-2013 Corporate Plan and Medium-Term Targets

    Overview Overview Fiscal 2012-2013 Corporate Plan and Medium-Term Targets 【Management Topics】 Transition to Holding Company System (scheduled for April 1, 2013) 《Ongoing Topics for Current Strategy 》 Fiscal 2012-2013 Corporate Plan Fiscal 2014 and Beyond  Enhance managerial efficiency (Phase II)

  5. Slide 5: Business Environment / Economic Outlook and Air Transportation Demand

    Business Business Environment Environment // Economic Economic Outlook Outlook and and Air Air Transportation Transportation Demand Demand Macroeconomic outlook is cloudy; looking to turn increasing latent latent air transportation demand to growth opportunities Asia/China still in high growth; lea

  6. Slide 6: Business Environment / Air Transportation Industry Trends

    Business Business Environment Environment // Air Air Transportation Transportation Industry Industry Trends Trends Strengthen management foundations in expectation of expanded capacity at Narita and Haneda FY2011 FY2011 FY2012 FY2012 FY2013 FY2013 FY2014 FY2014 FY2015 FY2015 International Narita Nar

  7. Slide 7: Fiscal 2012-2013 Corporate Plan / Profit Plan

    Fiscal Fiscal 2012-2013 2012-2013 Corporate Corporate Plan Plan // Profit Profit Plan Plan Create a base to secure stable profits of ¥100 billion and beyond; look for further medium- medium-term growth (¥ billion) FY11E FY12E FY11E Operating Revenues 1,400 1,500 1,560 Air Transportation Business 1,2

  8. Slide 8: Corporate Plan / Capital Expenditures & Cash Flows Plan

    Fiscal Fiscal 2012-2013 フリート導入計画・投資計画 2012-2013 Corporate Corporate Plan Plan // Capital Capital Expenditures Expenditures & & Cash Cash Flows Flows Plan Plan Continue capital investment in aircraft while still securing ¥100 billion in free cash flows over a two- two-year period 《Capital Expenditure

  9. Slide 9: Strategic Pivot Points

    Strategic Strategic Pivot Pivot Points Points Win in the market by building a stronger management foundation based on strategic pivot points that reflect changes in the market Fiscal Fiscal 2012-2013 Corporate 2012-2013 Corporate Plan Plan Pivot Pivot Points Points Group Reorganization Transition to

  10. Slide 10: Strategic Pivot 1: Holding Company System

    Strategic Strategic Pivot Pivot 1: 1: Holding Holding Company Company System System Create a management structure that can make the Group swiftly adapted to changes in the market , allow for Group-wide profit growth 《Currently》 《Holding Company Transition》 April 1, 2013  Separate Management Decisio

  11. Slide 11: Strategic Pivot 2: ¥100 Billion in Cost Reductions / ¥1 in unit cost reduction

    Strategic Strategic Pivot Pivot 2: 2: ¥100 ¥100 Billion Billion in in Cost Cost Reductions Reductions // ¥1 ¥1 in in unit unit cost cost reduction reduction Decisive cost reductions in all areas leading to stronger corporate corporate structure, better revenue risk management FY11 Base Level: Fiscal

  12. Slide 12: Strategic Pivot 3: Multi-Brand Strategy / LCC Business Growth

    Strategic Strategic Pivot Pivot 3: 3: Multi-Brand Multi-Brand Strategy Strategy // LCC LCC Business Business Growth Growth Expand operations mainly through international routes; use LCC businesses businesses to create new demand in LCC market 《ASK Plan for ANA and AirAsia Japan Domestic Routes 》 （AN

  13. Slide 13: Strategic Pivot 3: Multi-Brand Strategy / ANA Brand and LCC Brand

    Strategic Strategic Pivot Pivot 3: 3: Multi-Brand Multi-Brand Strategy Strategy // ANA ANA Brand Brand and and LCC LCC Brand Brand Expand networks and offer products/services based on unique business business properties of each brand, contribute to increased Group value <Full Service> <Frequent Busi

  14. Slide 14: Air Transportation Business / International Passenger Operation

    Air Air Transportation Transportation Business Business // International International Passenger Passenger Operation Operation Build a stronger business model as a network carrier focused on long- long-haul international route/connection demand Major Initiatives Expand Europe/U.S. network using B78

  15. Slide 15: Air Transportation Business / Domestic Passenger Operation

    Air Air Transportation Transportation Business Business // Domestic Domestic Passenger Passenger Operation Operation Improve business profitability through demand/supply balancing, aircraft operation efficiencies/optimization Major Initiatives Optimal route/aircraft plan for better efficiency and p

  16. Slide 16: Air Transportation Business / International Cargo Operations

    Air Air Transportation Transportation Business Business // International International Cargo Cargo Operations Operations Maximize freighter business profitability through better aircraft utilization Major Initiatives Maximize use of current fleet and introduce cost reforms to improve freighter oper

  17. Slide 17: Management Financial Targets / Dividend Policies

    Management Management Financial Financial Targets Targets // Dividend Dividend Policies Policies Increase shareholders’ equity through profits, create more stable financial posture 《Financial Targets》 billion)) Interest bearing debts (¥billion Interest-Bearing Debt Interest-Bearing Debt/EBITDA D/E R

  18. Slide 18: Five-year Earnings and Plan Overview

    Five-year Five-year Earnings Earnings and and Plan Plan Overview Overview Continued profit growth in the face of global recession and disaster. disaster. Accelerate management foundation improvement. FY2009 – FY2013 Earnings ✓ Overcame the FY2009 recession and FY2011 disaster to maintain strong grow

  19. Slide 19: II. ANA 2012-13 Corporate Plan Targets

    II. ANA 2012-13 Corporate Plan Targets ©ANA2012 19

  20. Slide 20: Consolidated Profit Plan

    Consolidated Profit Plan Consolidated Profit Plan FY11(E) FY12(E) Difference FY13(E) Difference Operating Revenues 1,400.0 1,500.0 + 100.0 1,560.0 + 60.0 Operating Expenses 1,310.0 1,390.0 + 80.0 1,430.0 + 40.0 Operating Income 90.0 110.0 + 20.0 130.0 + 20.0 Op. Margin (%) 6.4 7.3 + 0.9 8.3 + 1.0 No

  21. Slide 21: Profit Targets by Segment

    Profit Targets by Segment Profit Targets by Segment FY11(E) FY12(E) Difference FY13(E) Difference Air Transportation 1,266.0 1,364.0 + 98.0 1,430.0 + 66.0 Travel Services 152.0 155.0 + 3.0 155.0 - Total for Reporting Segments 1,418.0 1,519.0 + 101.0 1,585.0 + 66.0 Revenues Other 140.0 141.0 + 1.0 14

  22. Slide 22: Air Transportation Business Operating Income Plan

    Air Transportation Business Operating Income Plan (Air Transportation) FY11(E) FY12(E) Difference FY13(E) Difference Domestic Passengers 661.0 695.0 + 34.0 707.5 + 12.5 International Passengers 319.0 373.0 + 54.0 416.0 + 43.0 Operating Revenues Cargo and Mail 128.5 137.5 + 9.0 147.5 + 10.0 Others 15

  23. Slide 23: Operating Income Plan (Air Transportation)

    Air航空運送事業 Transportation Business 営業利益計画 Operating Income Plan (Air Transportation) (¥ billion） ※AirAsia Japan included FY12 Revenue +98.0 FY12 Expense -80.0 FY13 Revenue +66.0 FY13 Expense -46.0 Fuel & Fuel tax -23.0 Domestic Domestic Passengers +12.5 Fuel & Fuel tax +34.0 -25.5 Passengers Operatio

  24. Slide 24: ¥100 Billion Cost Reduction Initiatives

    ¥100 ¥100 Billion Billion Cost Cost Reduction Reduction Initiatives Initiatives 《FY13》 《FY13》Air AirTransportation Transportation 100 billion Op. Op. Expense Expense Cost Reduction No Cost No Cost Cost Reductions Reductions 《FY12》 《FY12》 Air AirTransportation Transportation ¥1.363 Reduction （¥ bil）

  25. Slide 25: ¥1 in Unit Cost Reduction Initiatives

    ¥1 ¥1 in in Unit Unit Cost Cost Reduction Reduction Initiatives Initiatives Operating Revenues and Expenses (FY10 Actual) FY10 Monitoring Indices Air Transportation (Passengers) Domestic Passengers 652.6 Unit Revenue = ¥10.8 International Passengers 280.6 Operating Revenues (Doms & Int’ Int’l Passen

  26. Slide 26: ¥1 in Unit Cost Reduction Initiatives

    ¥1 ¥1 in in Unit Unit Cost Cost Reduction Reduction Initiatives Initiatives Operating Revenues (Doms & Int’ Int’l Passengers) Air Transportation (Passengers) Unit Revenue ＝ Doms ASK + Int’ Int’l ASK Monitoring Indices Air Transportation (Passengers) Expenses（Total） Op. Expenses（ Total）‐（Cargo & Mail

  27. Slide 27: Revenue Plan by Segment

    Revenue Plan by Segment Revenue Plan by segment （Unit: ¥ billion, ％: year on year） 《《Domestic Domestic Passengers Passengers》》 《《International International Passengers》 Passengers》 《《International International Cargo》 Cargo》 Passengers Passengers （+2.1%） （+18.9%） Unit Price Unit Price （-0.2%） （-6.0%

  28. Slide 28: Revenue Plan by Segment: Passenger Operations

    Revenue Plan by Segment Revenue Plan 《Passenger Operations》 Domestic Passengers International Passengers *（*.* pts）:Difference ** （*.* pts）:year-on-year basis FY11(E) FY12(E) FY13(E) FY11(E) FY12(E) FY13(E) Available Seat km - 0.3 + 4.3 + 3.7 + 15.3 + 12.1 + 15.0 Revenue Passenger km - 3.1 + 7.3 + 0

  29. Slide 29: Revenue Plan by Segment: Cargo Operations

    Revenue Plan by Segment Revenue Plan 《Cargo Operations》 Domestic Cargo International Cargo ** （*.* pts）:year-on-year basis FY11(E) FY12(E) FY13(E) FY11(E) FY12(E) FY13(E) Available Ton km - 3.3 + 8.7 + 3.3 + 19.1 + 8.6 + 10.2 Revenue Ton km + 2.9 + 1.5 + 2.4 + 7.3 + 13.6 + 10.6 Revenue Ton + 2.6 + 1

  30. Slide 30: ©ANA2012

    ©ANA2012 ANA 7 | A STAR ALLIANCE MEMBER 4 > ve 30

  31. Slide 31: Consolidated Balance Sheet / Financial Targets (Plan)

    Consolidated Balance Sheet Consolidated Balance Sheet / Financial Targets (Plan) FY11(E) FY12(E) Difference FY13(E) Difference Assets 1,988.0 2,003.0 + 15.0 1,954.0 - 49.0 Shareholders' Equity 520.0 562.0 + 42.0 608.0 + 46.0 Ratio of Shareholders‘ Equity (%) 26.2 28.0 + 1.9 31.1 + 3.1 Interest Beari

  32. Slide 32: Consolidated Cash Flows

    Consolidated Cash Flows Consolidated Cash Flows (Plan) FY11(E) FY12(E) Difference FY13(E) Difference Net Income 20.0 40.0 + 20.0 55.0 + 15.0 Depreciation and Amortization 123.0 142.0 + 19.0 151.0 + 9.0 Principal Payment for Aircraft Lease 15.0 14.0 - 1.0 14.0 - Cash Flow from Operating Activities *

  33. Slide 33: Fuel Price and Exchange Rate

    Fuel Price and Exchange Rate 燃油・為替 Fuel Price and Exchange Rate Market Index and Assumptions FY11(E) FY12(E) FY13(E) Market Sensitivity FY12(E) FY13(E) 1H(A) 2H(E) (Non hedged impact) Dubai Crude Oil (USD/BBL) 109 105 100 100 1USD change per barrel 1.9 2.0 Kerosene (USD/BBL) 128 125 120 120 1JPY cha

  34. Slide 34: 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

  35. Slide 35: ANA Group Corporate Philosophy

    ANA Group Corporate Philosophy ANA Group Corporate Philosophy ANA Group Safety Principles － Our Commitments － 安全は経営の基盤であり社会への責務である。 Safety is our promise to the public and is the foundation of On a foundation of security and reliability, our business. 私たちはお互いの理解と信頼の the ANA Group will: Safety is a

  36. Slide 36: Thank you

    Thank you. This material is available on our website. http://www.ana.co.jp Investor Relations Financial Information Presentations Investor Relations, All Nippon Airways Co., Ltd. Phone +81-(0)3-6735-1030 E-Mail: ir@ana.co.jp ©ANA2012 36

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