China Airlines Ltd. · TWSE:2610
China Airlines — Q1 2022 Earnings Presentation
23 slides from China Airlines's earnings presentation, Jun 10, 2022
Slide 1: China Airlines 2022 1st Investor Conference
China Airlines 2022 1st Investor Conference Jun.10.’22 2022年3月22日
Slide 2: Safe Harbor Notice
Safe Harbor Notice The information disclosed in this presentation and its accompanying announcements, including content relating to business outlooks, financial operations, and business forecasts, is based on information derived from internal corporate data and external economic developments as a
Slide 3: Agenda
Agenda 2022Q1 Operating Performance 1. Operating results 3. Financial risk management 2. Revenue & Cost breakdown 4. Pax & Cargo performance Market Outlook 1. Business outlook 3. Fleet planning 2. Pax & Cargo strategies 4. Sustainable development 3
Slide 4: 2022Q1 Operating Results
& CHINA AIRLINES :¥) 2022QI1 Operating Results
Slide 5: 2022Q1 Financial Results
2022Q1 Financial Results (NTD 100 Million) 2021.Q1 2022.Q1 Differences YoY Operating revenue 278.28 372.33 94.05 33.80% Passenger revenue 19.75 21.85 2.1 10.63% Cargo revenue 240.25 327.79 87.54 36.44% Other operating revenue 18.28 22.69 4.41 24.12% Net Operating Income(Loss) -4.69 36.36 41.05 - Net
Slide 6: Enhancing financial structure ratios
Enhancing financial structure ratios Debt ratio Current ratio 200% 80% 78.97% 161.71% 155.53% 77.94% 150% 73.09% 73.44% 72.64% 70.30% 100% 91.40% 70% 77.81% 69.06% 60.28% 50% 60% 0% 2017 2018 2019 2020 2021 2022Q1 2017 2018 2019 2020 2021 2022Q1 Based on individual financial report 6
Slide 7: Revenue breakdown and comparison
Revenue breakdown and comparison In 2022Q1, over 90% of income is contributed by cargo revenue is the major income during the pandemic period. Compared with the quarters of the last year, 2022Q1 total operating revenue is lower than the final quarter but higher than the first 3 quarters. NTD 100
Slide 8: Cost breakdown and comparison
Cost breakdown and comparison 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2022Q1 34% 19% 18% 14% 9% 4% Rental、Depr. Airport & Fuel & Amortization Labor Maintenance ground OTH Sales & handling passenger service 2021FY 29% 20% 18% 17% 10% 4% Based on individual financial report 8
Slide 9: Fuel cost analysis
Fuel cost analysis Unit 2021Q1 2022Q1 YoY Jet fuel(MOPS) USD/BBL 63.44 112.74 77.72% Fuel Consumption 10K BBL 343.75 352.35 2.50% TWD Fuel Cost 100 million 65.52 105.14 60.47% Hedging TWD gain/loss 100 million 0 (0.43) - TWD Total fuel cost 100 million 65.52 104.71 59.81% 9
Slide 10: Financial risk management
Financial risk management CAL’s hedging of fuel, exchange rates and interests rates etc., are based on the decisions made by the risk committee of Board of Directors. Exchange rates ： Natural hedge is applied in order to reduce influences made by currency fluctuation. Interest rates：Issue fixe
Slide 11: 2022Q1 Passenger performance
2022Q1 Passenger performance Passenger revenue distribution by region Available seat kilometer Currency: TWD North East (ASK) 1.58(+17.2%) Asia, 2% Passenger revenue Hong Kong, billion 2% 1.3 billion Average load factor Europe, 10% China, 26% (YoY+8.1%) Oceanic, 11% Revenue passenger 16.1 % (-3.5 pp
Slide 12: 2022Q1 Cargo performance
2022Q1 Cargo performance Cargo revenue distribution by region Available Freight Currency: TWD Ton Kilometer(AFTK) Oceanic Hong Kong 2.23(-4.2%) 3% Cargo revenue North East Asia 4% billion 32.7 billion 5% China, 6% Average load factor (YoY+36.5%) Carried tonnes 78.2 % (+2.7 ppt) Europe, 9% North 240.
Slide 13: Market Outlook
& CHINA AIRLINES :¥) Market Outlook
Slide 14: Overall business environment
Overall business environment Pax market：following by the border restriction ease, international RPK has recovered to 50% compared with pre-covid level. Cargo market：cargo capacity is still below 2019 level due to the Omicron outbreak leading to lockdown in China and the Ukraine-Russia conflict t
Slide 15: Re-opening border is boosting pax market recovery
Re-opening border is boosting pax market recovery 120% Asia Pacific US & EU have started re-opening of borders, which Europe, North 2025 2024 stimulates pax demand; however, some Asia Pacific 110% America, 2023 key markets remain closed which may slow down 2019 level Middle 100% recovery and keep
Slide 16: TPE airport pax volume is bottomed out
TPE airport pax volume is bottomed out TPE airport international trend 2022 5 Taiwan entry policies 137,896 Open borders to foreign business travelers, foreign student spouses Reopened Countries and minors, Southeast workers to Taiwan. 2020 4 Replace on-arrival PCR 34,618 test with saliva test.
Slide 17: China lockdown and Ukraine-Russia conflict weaken global supply chain strain
China lockdown and Ukraine-Russia conflict weaken global supply chain strain, but air rate is still in historical high Asia pacific supply and demand(change% with 2019) USD/kg 2022/2021 average air rete Demand decreased in Mar.2022 $6 Air cargo growth starts to slowdown $5 2022 15% West coast
Slide 18: Taiwan is one of major air cargo transit demand markets in Asia Pacific
Taiwan is one of major air cargo transit demand markets in Asia Pacific TPE airport cargo volume growth % with 2019 60% 50% 40% 30% 20% Taiwan 10% 2019 level 0% -10% -20% 1 4 7 10 1 4 7 10 1 4 2020 2021 2022 資料來源：桃機公司、Seabury、本公司整理 18
Slide 19: Business planning & strategies
Business planning & strategies High efficiency freight Well-prepared for introduction and stable cargo reopening PAX market income Increase customer preference by Deploying the 777F, through operational deploying the A321neo on regional routes efficiency to improve profitability Expand route n
Slide 20: Fleet planning
Fleet planning Fleet type 2022.05 2022.12 Remark 777-300ER 10 10 Wide body A350-900 14 14 A330-300 22 21 Phase out*1 Narrow 737-800 12 12 body A321neo 6 10 introduction*4 Net increase 3 Total pax aircraft 64 67 pax aircraft 747-400F 18 18 Freighters 777F 4 5 introduction*1 Net increase 1 Total freig
Slide 21: Launch environmentally friendly flight
Launch environmentally friendly flight China Airlines participated in “The Sustainable Flight Challenge” (TSFC) issued by SkyTeam on 5/4, selecting flight CI-753 from Taipei to Singapore as the sustainability demonstration flight. With ECO as the core concept, we take care of every details inclu
Slide 22: Sustainability award & performance
Sustainability award & performance The only Taiwanese airline selected as a component of DJSI Emerging Markets for six consecutive years. Ranking 2nd place in the global aviation industry. 8 consecutive years 3 consecutive years 11 consecutive years 2014 - 2021 2019 - 2021 2012 - 2022 Won the Ta
Slide 23: Thank you
& CHINA AIRLINES :¥) Thank you