Ana Holdings Inc. · TSE:9202

Ana — H1 FY2015 Earnings Presentation

40 slides from Ana's earnings presentation, Oct 28, 2015

  1. Slide 1: Financial Results for the Six Months ended September 30, 2015

    ANA HOLDINGS INC. Financial Results for the Six Months ended September 30, 2015 Shinya Katanozaka President and CEO Yuji Hirako Senior Vice President and CFO, Member of the Board October 28, 2015 ©ANAHD2015 1

  2. Slide 2: Contents

    Contents 【Part 1】 Ⅰ. Financial Results for the Six Months ended September 30, 2015 《Outline》 Air Transportation Business Outline of Financial Results P. 4 Operating Revenues and Expenses P. 19 FY2015 Second Quarter Changes in Operating Income P. 20 Performance of New Routes P. 5 Domestic Passenger O

  3. Slide 3: Financial Results for the Six Months ended September 30, 2015 《Outline》

    Ⅰ. Financial Results for the Six Months ended September 30, 2015 《Outline》 ©ANAHD2015 3

  4. Slide 4: Outline of Financial Results FY2015 Second Quarter

    Outline of Financial Results FY2015 Second Quarter Achieved significant increase in revenues especially on Air Transportation business and made consistent improvement in profitability of the group 《 Financial Results FY2015 1st Half (Consolidated) 》 《Trends on Op. Income（Consolidated）》 Diff. vs （¥Bi

  5. Slide 5: Performance of New Routes on International Operations

    Performance of New Routes on International Operations New routes in service from the first half in this fiscal year made a good start Load Factor (%) FY14 1H FY14 2H FY15 1H 90 FY14 Principle New Routes FY15 1H New Routes 85 From Sep.1 Kuala Lumpur 80 From Jun.12 Vancouver Manila Houston 75 70 Dusse

  6. Slide 6: Status of the Group Business

    Status of the Group Business 燃油・為替 Promote business portfolio strategy steadily by expanding international business as a growth driver Review of 1H Major Approach of 2H ・Penetrated Haneda network in the market ・Establish Tokyo Metropolitan Dual-hub function International ・Implemented network expansi

  7. Slide 7: For the Next Corporate Strategy

    For the Next Corporate Strategy Achieve our management vision in 2020 and aim for top-tier in “customer satisfaction” and “value creation” The next corporate strategy aims for … Long-term Strategic Vision (-FY25) disclosed on Jan.30,2015 Achieve World’s leading airline group 1. Expand Domains of Air

  8. Slide 8: For the Next Corporate Strategy: Accelerate growth of existing business

    For the Next Corporate Strategy Capture expanding inbound demand for the group business domains to accelerate top-line growth FY16-20 Next Corporate Strategy Air Transportation Expand domains of airline business Enhance capturing inbound demand by all group companies  Reinforce marketing in oversea

  9. Slide 9: For the Next Corporate Strategy: Pursue profitability under stable financial platform

    For the Next Corporate Strategy Pursue profitability under the stable financial platform Growth “Long-term Strategy Foundation Promotion Acceleration （Past） （Present） （Next Corporate Strategy） Strategic Vision” （Top-line） FY2025 Cost 目指すべき水準 Op.Income ¥87.0Bn in total ¥50.0Bn in total New Counter- R

  10. Slide 10: Intentionally Blank

    Intentionally Blank ©ANAHD2015 10

  11. Slide 11: (MEMO)

    (MEMO) ©ANAHD2015 ANA 11

  12. Slide 12: (MEMO)

    (MEMO) ©ANAHD2015 ANA 12

  13. Slide 13: Financial Results for the Six Months ended September 30, 2015 《Details》

    Ⅱ. Financial Results for the Six Months ended September 30, 2015 《Details》 ©ANAHD2015 13

  14. Slide 14: Highlights of FY2015 Second Quarter

    Highlights of FY2015 Second Quarter Comparison of Financial Results FY15 1-2Q and FY14 Achieved a significant profit increase year-on-year 【 FY15 1-2Q Cumulative Results(Consolidated) 】 【2Q [Jul.-Sep.] (Consolidated)】  Op. Income ： ¥ 86.7Bn （YoY ¥ + 28.8Bn）  Op. Income ： ¥70.0Bn  Net Income Attri

  15. Slide 15: Consolidated Financial Summary: Income Statements

    Consolidated Financial Summary Income Statements (¥Billion) 1H/FY2014 1H/FY2015 Difference 2Q/FY2015 Difference Operating Revenues 854.8 911.2 + 56.4 497.3 + 29.3 Operating Expenses 796.8 824.4 + 27.5 427.3 + 16.9 Operating Income 57.9 86.7 + 28.8 70.0 + 12.4 Operating Income Margin (%) 6.8 9.5 + 2.

  16. Slide 16: Consolidated Financial Summary: Financial Position

    Consolidated Financial Summary Financial Position (¥Billion) Mar 31, 2015 Sep 30, 2015 Difference Assets 2,302.4 2,319.8 + 17.4 Shareholders' Equity 798.2 816.6 + 18.3 Ratio of Shareholders' Equity (%) 34.7 35.2 + 0.5pts Interest Bearing Debts 819.8 780.5 - 39.3 Debt/Equity Ratio (times) * 1.0 1.0 -

  17. Slide 17: Consolidated Financial Summary: Statements of Cash Flow

    Consolidated Financial Summary Statements of Cash Flow (¥Billion) 1H/FY2014 1H/FY2015 Difference Cash Flow from Operating Activities 122.2 171.1 + 48.9 Cash Flow from Investing Activities - 156.2 - 123.0 + 33.2 Cash Flow from Financing Activities 22.1 - 56.4 - 78.5 Net Increase/Decrease in Cash and

  18. Slide 18: Consolidated Financial Summary: Results by Segment

    Consolidated Financial Summary Results by Segment (¥Billion) 1H/FY2014 1H/FY2015 Difference 2Q/FY2015 Difference Air Transportation 742.2 788.0 + 45.8 430.8 + 23.8 Airline Related 108.9 114.4 + 5.5 56.6 + 1.3 Travel Services 89.0 88.4 - 0.5 52.1 - 0.1 Operating Trade and Retail 61.3 71.5 + 10.2 36.3

  19. Slide 19: Air Transportation Business: Operating Revenues and Expenses

    Air Transportation Business Operating Revenues and Expenses 1H/FY2014 1H/FY2015 Difference 2Q/FY2015 Difference (¥Billion) Domestic Passenger 345.8 353.2 + 7.4 200.9 + 3.4 International Passenger 235.7 259.6 + 23.9 140.3 + 13.8 Operating Cargo and Mail 80.3 78.9 - 1.4 40.2 - 0.9 Revenues Others 80.1

  20. Slide 20: Air Transportation Business: Changes in Operating Income

    Air Transportation Business Changes in Op. Income ・Revenues from contracted maintenance and handling ･Depreciation and Amortization except aircraft ・Mileage/Card ･Maintenance, etc. ・LCC Business, etc. (¥Billion） ･Commission Other Revenues Other Expenses ･Advertisement ･In-flight service ･Ground hand

  21. Slide 21: Domestic Passenger Operations

    Air Transportation Business Domestic Passenger Operations 1H/FY2014 1H/FY2015 % YoY 2Q/FY2015 % YoY Available Seat Km (million) 30,647 30,307 - 1.1 15,842 + 0.2 Revenue Passenger Km (million) 19,293 19,433 + 0.7 10,581 + 0.7 Passengers (thousands) 21,675 21,551 - 0.6 11,640 - 0.6 Load Factor (%) 63.

  22. Slide 22: Trends in Domestic Passenger Operations

    Air Transportation Business Trends in Domestic Passenger Operations (Not including Vanilla Air) FY15 1H Revenue Change Factors Trends of ASK, Revenues and Load Factor Achieved to increase in revenues with strategic pricing Load Factor improved steadily by optimizing demand management in considerat

  23. Slide 23: International Passenger Operations

    Air Transportation Business International Passenger Operations 1H/FY2014 1H/FY2015 % YoY 2Q/FY2015 % YoY Available Seat Km (million) 24,718 26,333 + 6.5 13,731 + 10.3 Revenue Passenger Km (million) 18,025 19,984 + 10.9 10,790 + 12.9 Passengers (thousands) 3,591 4,062 + 13.1 2,152 + 13.2 Load Factor

  24. Slide 24: Trends in International Passenger Operations

    Air Transportation Business Trends in International Passenger Operations (Not including Vanilla Air) FY15 1H Revenue Change Factors Trends of ASK, RPK and Yield  Business expansion led to significant increase in revenues  Steadily captured demand both in Japan and overseas Index：FY13 1Q=100 Passen

  25. Slide 25: Trends of ASK and RPK by Destination

    Air Transportation Business Trends in International Passenger Operations (Not including Vanilla Air) Trends of ASK and RPK by Destination (Index FY13 1Q=100) ：ASK ：RPK 180 North America 180 China 160 160 140 140 120 120 100 100 80 80 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY13 F

  26. Slide 26: Progress of Dual-hub Network Strategy

    Air Transportation Business Trends in International Passenger Operations (Not including Vanilla Air) Progress of “Dual-hub Network Strategy” （Trends of Traffic Results by Airports in 1st Half ） FY15 Size of Bubbles：RPK FY13 FY15 FY13 FY14 Flights at Haneda Horizontal：ASK（Millions） FY14 Flights at Na

  27. Slide 27: Domestic Cargo Operations

    Air Transportation Business Domestic Cargo Operations 1H/FY2014 1H/FY2015 % YoY 2Q/FY2015 % YoY Available Ton Km (million) 963 953 - 1.0 512 + 2.3 Revenue Ton Km (million) 236 230 - 2.8 124 - 0.7 Revenue Ton (thousand tons) 236 228 - 3.2 124 - 1.5 Load Factor (%) 24.6 24.1 - 0.4pts* 24.2 - 0.7pts* C

  28. Slide 28: International Cargo Operations

    Air Transportation Business International Cargo Operations 1H/FY2014 1H/FY2015 % YoY 2Q/FY2015 % YoY Available Ton Km (million) 2,742 2,957 + 7.9 1,537 + 10.0 Revenue Ton Km (million) 1,801 1,702 - 5.5 873 - 4.0 Revenue Ton (thousand tons) 428 396 - 7.5 204 - 5.3 Load Factor (%) 65.7 57.5 - 8.2pts*

  29. Slide 29: International Freighter Operations

    Air Transportation Business 【Ref.】International Freighter Operations 1H/FY2014 1H/FY2015 % YoY 2Q/FY2015 % YoY Available Ton Km (million) 618 625 + 1.1 314 - 2.5 Revenue Ton Km (million) 386 347 - 10.1 177 - 11.7 Revenue Ton (thousand tons) 194 176 - 9.3 90 - 8.1 Load Factor (%) 62.5 55.6 - 6.9pts*

  30. Slide 30: Trends in International Cargo Operations

    Air Transportation Business Trends in International Cargo Operations FY15 1H Revenue Change Factors Trends of Traffic Results and Unit Price  Revenue decreased compared to the last year due to Although unit price improved, capturing demand in short decline in weight volume （YoY：%） * Japan Aircargo

  31. Slide 31: LCC Operations

    Air Transportation Business LCC Operations Domestic and International 1H/FY2014 1H/FY2015 % YoY 2Q/FY2015 % YoY Passenger Operations in Total Available Seat Km (million) 1,098 1,724 + 57.0 927 + 53.9 Revenue Passenger Km (million) 820 1,495 + 82.3 826 + 57.8 Passengers (thousands) 570 896 + 57.2 503

  32. Slide 32: Other Segments excluding Air Transportation Business

    Other Segments excluding Air Transportation Business Results by Segment Airline Related Travel Services (¥Billion) 1H/FY2014 1H/FY2015 Difference 1H/FY2014 1H/FY2015 Difference Operating Revenues 108.9 114.4 + 5.5 89.0 88.4 - 0.5 Operating Income 5.2 4.2 - 0.9 2.7 2.8 + 0.0 Depreciation and Amortiza

  33. Slide 33: Status of Fuel and Currency Hedging

    Status of Fuel and Currency Hedging FY2015 Dubai Crude Oil(US$/bbl) Singapore Kerosene(US$/bbl) Fuel Hedge Earnings Forecast Assumptions 67 85 1H Results 55.7 67.9 (Not including hedge impact) 100% 80% Hedge Ratio(as of Sep 30, 2015) Fuel Cost 80% US$1 change per barrel 60% Non hedge 40% 35% impact

  34. Slide 34: Intentionally Blank

    Intentionally Blank ©ANAHD2015 34

  35. Slide 35: Supplemental Reference

    Supplemental Reference ©ANAHD2015 35

  36. Slide 36: Supplemental Reference: Aircraft in Service

    Supplemental Reference Aircraft in Service Mar 31, 2015 Sep 30, 2015 Change Owned Leased Boeing 777-300ER 20 22 +2 16 6 Boeing 777-300 7 7 － 7 0 Boeing 777-200ER 12 12 － 6 6 Boeing 777-200 16 16 － 14 2 Boeing 787-9 2 8 +6 8 0 Boeing 787-8 32 34 +2 31 3 Boeing 767-300ER 26 25 -1 11 14 Boeing 767-300

  37. Slide 37: Supplemental Reference: International Passenger Results by Destination

    Supplemental Reference International Passenger Results 1H/FY2015 2Q/FY2015 Composition Difference Composition Difference by Destination North America 32.5 - 0.7 32.8 - 0.3 Europe 19.6 - 1.9 19.7 - 2.5 Revenues China 16.7 + 2.0 16.4 + 1.5 Asia 27.0 + 0.4 26.1 + 0.6 Resort 4.2 + 0.3 5.0 + 0.7 North Am

  38. Slide 38: Supplemental Reference: International Cargo Results by Destination

    Supplemental Reference International Cargo Results by 1H/FY2015 2Q/FY2015 Composition Difference Composition Difference Destination North America 24.2 + 2.5 22.7 + 0.5 Europe 13.6 - 1.0 13.7 - 0.5 Revenues China 34.3 - 0.1 36.1 + 1.7 Asia 21.9 - 0.4 21.7 - 1.0 Others 5.9 - 1.0 5.9 - 0.7 North Americ

  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

  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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