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Ana — All Nippon Airways — Q2 FY2012 Earnings Presentation

42 slides from Ana's earnings presentation, Oct 31, 2012

  1. Slide 1: Financial Results FY2012 Second Quarter

    All Nippon Airways Financial Results FY2012 Second Quarter Shinichiro Ito President and CEO Kiyoshi Tonomoto Executive Vice President and CFO October 31, 2012 ©ANA2012 1

  2. Slide 2: Contents

    Contents 【Part Ⅰ】 Ⅰ. FY2012 Financial Results Second Quarter and FY2012 Earnings Forecast Financial Results FY2012 Second Quarter - Highlights P.4 FY2012 Full-Year Earnings Forecast P.5 Fleet / Route Network Strategy P.6 LCC Business P.7 Capital Increase through Public Offering P.8 Medium-Term Corpo

  3. Slide 3: FY2012 Financial Results Second Quarter and FY2012 Earnings Forecast

    Ⅰ. FY2012 Financial Results Second Quarter and FY2012 Earnings Forecast 【Part Ⅰ】 ©ANA2012 3

  4. Slide 4: Financial Results FY2012 Second Quarter - Highlights

    Financial Results FY2012 Second Quarter - Highlights New operating income records set for second quarter and first half 《FY2012 First Half Results》 《First Half Results》 (FY2010 – FY2012) （¥billion） (¥billion) 1H / FY12 Diff. vs. Change 80.0 75.3 1H/FY11 Operating Revenues 753.2 +48.3 +6.9% 70.0 64.2

  5. Slide 5: FY2012 Full-Year Earnings Forecast

    FY2012 Full-Year Earnings Forecast Top line revised downward, but profit plan and planned dividend amount remain original plan 《Revision of Earnings Forecast》 【Key points of revision of earnings forecast 】 (Air Transportation) Operating revenues and operating expenses were revised 30.0 billion yen

  6. Slide 6: Fleet / Route Network Strategy

    Fleet / Route Network Strategy Accelerated incorporation of Boeing 787s and expansion of ANA brand international route network 《FY2012 International Passenger Operations: ASK Growth and Route Plan》 【No. of B787 owned】 （Route Plan for First Half） （ASK Results for First Half: total +9.3%） N. America +

  7. Slide 7: LCC Business

    LCC Business Launch a Japan-based LCC business that focuses on Japan and the growing Asian Market (Base Airport : Kansai) (Base Airport : Narita) Destination Flt/D Destination Flt/D Destination Flt/D Destination Flt/D Sapporo 4 Seoul(Incheon) 3 Sapporo 3 Seoul(Incheon)** 1 Fukuoka 3 Hong Kong 1 Kans

  8. Slide 8: Capital Increase through Public Offering

    Capital Increase through Public Offering Use a capital increase to strengthen the balance sheet and move to a growth strategy that uses growth funds 《Overview of capital increase through public offering》 offering》 End of End of 【Net asset indicators 】 Sept. 2012 Mar. 2012 Amount credited: credited

  9. Slide 9: Medium-Term Corporate Strategy

    Medium-Term Corporate Strategy Progress of fiscal 2012-13 Corporate Plan and direction of Corporate Plan in next term Cost Restructuring Fleet / Route Network Multi-Brand Strategy ◆Strategic Investment ◆Total 100 billion yen ◆Incorporate a total of Incorporate Asia’s growth in cost savings 66 Boeing

  10. Slide 10: FY2012 Financial Results Second Quarter Details

    Ⅱ. FY2012 Financial Results Second Quarter 《Details》 【Part Ⅱ】 ©ANA2012 10

  11. Slide 11: Highlights FY2012 Second Quarter

    Highlights FY2012 Second Quarter Highlights of Financial Results FY2012 1-2Q and FY2011 1-4Q  Consolidated cumulative operating income for 2Q posted 75.3 billion yen (25.1 billion yen year-on-year improvement). 36.9 billion yen net income for the quarter (14.0 billion yen year-on-year improvement)

  12. Slide 12: Consolidated Financial Summary: Income Statements

    Consolidated Financial Summary Income Statements 1H/FY11 1H/FY12 Difference 2Q/FY12 Difference Operating Revenues 704.8 753.2 + 48.3 410.0 + 10.2 Operating Expenses 654.7 677.9 + 23.2 345.7 + 4.2 Operating Income 50.1 75.3 + 25.1 64.2 + 5.9 Op. Margin (%) 7.1 10.0 + 2.9pts 15.7 + 1.1pts Non-Op. Gain

  13. Slide 13: Consolidated Financial Position

    Consolidated Financial Summary Consolidated Financial Position Mar 31, 2012 Sept 30, 2012 Difference Assets 2,002.5 2,165.5 + 162.9 Shareholders' Equity 549.0 736.3 + 187.3 Ratio of Shareholders' Equity (%) 27.4 34.0 + 6.6pts Interest Bearing Debts 963.6 933.6 - 29.9 Debt/Equity Ratio (times) 1.8 1.

  14. Slide 14: Consolidated Statements of Cash Flow

    Consolidated Financial Summary Consolidated Statements of Cash Flow 1H/FY11 1H/FY12 Difference Cash Flow from Operating Activities 90.4 123.7 + 33.3 Cash Flow from Investing Activities - 171.5 - 326.0 - 154.4 Cash Flow from Financing Activities 126.7 129.6 + 2.8 Net Increase or Decrease 45.4 - 72.7

  15. Slide 15: Results by Segment

    Consolidated Financial Summary Results by Segment 1H/FY11 1H/FY12 Difference 2Q/FY12 Difference Air Transportation 631.0 672.0 + 40.9 365.5 + 8.8 Travel Services 78.4 84.3 + 5.8 49.5 - 2.4 Total for Reporting Segments 709.5 756.3 + 46.8 415.1 + 6.3 Revenues Other 67.7 73.5 + 5.7 37.4 + 3.0 Adjustmen

  16. Slide 16: Intentionally Blank

    Intentionally Blank ©ANA2012 16

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

    Air Transportation Business Operating Revenues and Expenses 1H/FY11 1H/FY12 Difference 2Q/FY12 Difference Domestic Passengers 327.8 343.0 + 15.2 193.8 + 0.5 International Passengers 159.6 179.7 + 20.1 96.5 + 6.2 Operating Revenues Cargo and Mail 64.9 60.7 - 4.2 29.8 - 1.8 Others 78.6 88.3 + 9.7 45.3

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

    Air Transportation Business ･Maintenance Sales- Sales-Linked ･Commission, Advertisement Changes in Operating Income ・Handling ･In- In-flight service - 6.2 +4.9 ・Mileage/Card Mileage/Card ･Ground Handling, etc. (¥ Billion) ・LCC Business, Business, etc. Other Revenues ･Landing/Navigation Fees Internat

  19. Slide 19: Domestic Passenger Operations

    Air Transportation Business Domestic Passenger Operations 1H/FY11 1H/FY12 % Y/Y 2Q/FY12 % Y/Y Available Seat Km (million) 28,408 29,727 + 4.6 15,470 + 2.6 Revenue Passenger Km (million) 17,053 18,336 + 7.5 10,039 + 1.4 Passengers (thousands) 19,217 20,773 + 8.1 11,270 + 2.0 Load Factor (%) 60.0 61.7

  20. Slide 20: Trends in Domestic Passenger Operations

    Air Transportation Business Trends in Domestic Passenger Operations Quarterly Trends in Number of Passengers 1H Cumulative Revenue Change Factors Unit Price by Segment  Large revenue increase owing to passenger  The number of passengers is steadily recovering factors because of demand recovery fro

  21. Slide 21: International Passenger Operations

    Air Transportation Business International Passenger Operations 1H/FY11 1H/FY12 % Y/Y 2Q/FY12 % Y/Y Available Seat Km (million) 16,919 18,490 + 9.3 9,431 + 9.8 Revenue Passenger Km (million) 12,204 14,341 + 17.5 7,523 + 11.7 Passengers (thousands) 2,840 3,311 + 16.6 1,719 + 9.7 Load Factor (%) 72.1 7

  22. Slide 22: Trends in International Passenger Operations

    Air Transportation Business Trends in International Passenger Operations 1H Cumulative Revenue Change Factors Quarterly ASK / RPK / Yield Trends With the increase in ASK and recovery in demand since  RPK is showing growth greater than ASK as we greatly the earthquake, revenues have risen primarily

  23. Slide 23: Domestic Cargo Operations

    Air Transportation Business Domestic Cargo Operations 1H/FY11 1H/FY12 % Y/Y 2Q/FY12 % Y/Y Available Ton Km (million) 903 975 + 8.0 509 + 6.9 Revenue Ton Km (million) 228 224 - 1.8 117 - 1.9 Revenue Ton (thousand tons) 229 226 - 1.5 119 - 1.3 Domestic Cargo Load Factor (%) 25.3 23.0 - 2.3pts* 23.1 -

  24. Slide 24: Intentionally Blank

    Intentionally Blank ©ANA2012 24

  25. Slide 25: International Cargo Operations

    Air Transportation Business International Cargo Operations 1H/FY11 1H/FY12 % Y/Y 2Q/FY12 % Y/Y Available Ton Km (million) 1,791 1,927 + 7.6 981 + 8.6 Revenue Ton Km (million) 1,081 1,167 + 7.9 581 + 12.2 Revenue Ton (thousand tons) 277 293 + 5.9 147 + 7.8 International Cargo Load Factor (%) 60.4 60.

  26. Slide 26: Trends in International Cargo Operations

    航空運送事業 Trends in International Cargo Operations 1H Cumulative Revenue Change Factors Cargo Volume and Unit Price Trends ATK increase means more cargo volume is being carried, Cargo demand on inbound and outbound traffic in Japan is low but revenue is down because of unit price factors and declinin

  27. Slide 27: FY2012 Earnings Forecast Details

    Ⅲ. FY2012 Earnings Forecast 《Details》 ©ANA2012 27

  28. Slide 28: Intentionally Blank

    Intentionally Blank ©ANA2012 28

  29. Slide 29: Consolidated Earnings Forecast

    FY2012 Earnings Forecast 《Ref.》 As of Apr 27, 2012 Consolidated Earnings Forecast FY11 FY12（RE） Difference FY12（E） Operating Revenues 1,411.5 1,470.0 + 58.4 1,500.0 Operating Expenses 1,314.4 1,360.0 + 45.5 1,390.0 Operating Income 97.0 110.0 + 12.9 110.0 Op. Margin (%) 6.9 7.5 + 0.6pts 7.3 Recurrin

  30. Slide 30: Impact on Senkaku islands territorial dispute

    Impact on Senkaku islands territorial dispute ■Reservation and cancellation trends following the Senkaku Islands territorial dispute Passenger Total Passenger : Reservations + boardings difference 6,000 Anti-Japan from day before* demonstrations 4,000 around China 2,000 0 -2,000 -4,000 -6,000 Septem

  31. Slide 31: Earnings Forecast by Segment

    FY2012 Earnings Forecast Earnings Forecast by Segment 《Ref.》 As of Apr 27, 2012 FY11 FY12（RE） Difference FY12（E） Air Transportation 1,262.5 1,342.0 + 79.4 1,372.0 Travel Services 158.9 159.0 + 0.0 159.0 Total for Reporting Segments 1,421.5 1,501.0 + 79.4 1,531.0 Revenues Other 138.4 137.0 - 1.4 137.

  32. Slide 32: Operating Revenues and Expenses Forecast

    FY2012 Earnings Forecast Operating Revenues and Expenses 《Ref.》 As of Apr 27, 2012 FY11 FY12 (RE) Difference FY12（E） Domestic Passengers 651.5 682.0 + 30.4 695.0 International Passengers 320.0 351.5 + 31.4 370.0 Operating Revenues Cargo and Mail 128.0 131.5 + 3.4 138.5 Others 162.8 177.0 + 14.1 168.

  33. Slide 33: Earnings Forecast Assumptions: Passenger Operations

    FY2012 Earnings Forecast 《Passenger Operations》 Earnings Forecast Assumptions for FY12（vs. FY11） Domestic Passengers International Passengers 1H(A) 2H(RE) FY12(RE) 1H(A) 2H(RE) FY12(RE) Available Seat Km + 5.1 + 4.3 + 4.7 + 9.3 + 14.0 + 11.7 Revenue Passenger Km + 8.2 + 5.1 + 6.6 + 17.5 + 9.5 + 13.3

  34. Slide 34: Earnings Forecast Assumptions: Cargo Operations

    FY2012 Earnings Forecast 《Cargo Operations》 Earnings Forecast Assumptions for FY12（vs. FY11） Domestic Cargo International Cargo １H(A) 2H(RE) FY12(RE) １H(A) 2H(RE) FY12(RE) Available Ton km +8.0 + 6.2 + 7.1 + 7.6 + 11.0 + 9.3 Revenue Ton km - 1.8 + 3.8 + 1.0 + 7.9 + 23.9 + 16.2 Revenue Ton - 1.5 + 3.

  35. Slide 35: Supplemental Reference

    Ⅳ. Supplemental Reference ©ANA2012 35

  36. Slide 36: Fuel Price and Exchange Rate

    Supplemental 燃油・為替 Reference Fuel Price and Exchange Rate FY2012 Market Index and Assumptions 1H(A) 2H(E) Dubai Crude Oil (USD/BBL) 106 100 Kerosene (USD/BBL) 124 120 Exchange Rate (JPY/USD) 79 80 Hedging Ratio (as of Sept, 2012) FY2012 FY2013 FY2014 FY2015 60% Fuel Currency 50% 40% 30% 20% 10% 0% F

  37. Slide 37: International Passenger Results by Destination

    Supplemental Reference International Passenger Results by Destination 1H/FY12 2Q/FY12 Difference Difference Composition Composition North America 27.5 + 1.1 27.5 + 1.6 Europe 22.2 + 1.9 22.8 + 1.9 Passenger China 18.2 - 1.9 17.6 - 1.8 Revenue Asia 27.3 - 0.8 26.7 - 1.3 Resort 4.8 - 0.2 5.5 - 0.4 Nor

  38. Slide 38: International Cargo Results by Destination

    Supplemental Reference International Cargo Results by Destination 1H/FY12 2Q/FY12 Difference Difference Composition Composition North America 19.8 - 2.1 19.0 - 0.9 Europe 15.4 - 1.2 15.3 - 0.6 Revenue China 37.7 + 1.9 39.5 + 1.7 Asia 20.5 + 0.5 19.5 + 0.2 Others 6.6 + 0.9 6.7 - 0.5 North America 31.

  39. Slide 39: Aircraft in Service

    Supplemental Reference Aircraft in Service Mar, 2012 Sept, 2012 Change Owned Leased Boeing 747-400 (Domestic) 8 7 -1 7 0 Boeing 777-300ER 19 19 － 16 3 Wide-Body Boeing 777-300 7 7 － 7 0 Boeing 777-200ER 7 9 +2 6 3 Boeing 777-200 16 16 － 14 2 Boeing 787-8 6 14 +8 14 0 Boeing 767-300ER 26 26 － 6 20 Mi

  40. Slide 40: 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

  41. Slide 41: 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

  42. Slide 42: Thank you

    Thank you. This material is available on our website. http://www.ana.co.jp/eng 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 42

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