Ana Holdings Inc. · TSE:9202

Ana — All Nippon Airways — Q1 FY2011 Earnings Presentation

50 slides from Ana's earnings presentation, Jul 29, 2011

  1. Slide 1: All Nippon Airways Financial Results FY11 First Quarter

    All Nippon Airways Financial Results FY11 First Quarter Shinichiro Ito President and CEO Tomohiro Hidema Executive Vice President and CFO July 29, 2011 ©ANA2011 1

  2. Slide 2: Contents

    Contents 【Part Ⅰ】 Ⅳ. FY2011 Earning Forecast (Detail) Ⅰ. FY11 First Quarter Results and FY11 Earnings Forecast Consolidated Earnings Forecast P.33-34 Financial Report FY11 First Quarter P.5 Earning Forecast by Segment P.35 FY2011 Earnings Forecast P.6 Air Transportation Business Operating Revenues a

  3. Slide 3: I. FY11 First Quarter Results and FY11 Earnings Forecast

    I. FY11 First Quarter Results and FY11 Earnings Forecast 【Part Ⅰ】 ©ANA2011 3

  4. Slide 4: Intentionally Blank

    Intentionally Blank ©ANA2011 4

  5. Slide 5: Financial Report FY11 First Quarter

    Financial Report FY11 First Quarter Despite flexible cost control measures, revenues were driven down by the earthquake and so we closed in deficit. 【1Q Financial Results Key Points】 ◆Significant Declines 《Financial Results FY11 First Quarter》 in Demand and Revenues Diff. vs. 《Impact of earthquake

  6. Slide 6: FY2011 Earnings Forecast

    FY2011 Earnings Forecast Return to profitability by striving to improve revenues through cost reduction initiatives and demand stimulation; we plan to issue a dividend of 2 yen. 《FY11 Full-Year Results and Financial Benchmarks Outlook》 【Earnings Forecast Key Points】 Year- Year-on- on-Year FY11 Chan

  7. Slide 7: II. Corporate Strategy

    Ⅱ. Corporate Strategy ©ANA2011 7

  8. Slide 8: LCC Business Strategy: LCC presence will expand globally

    LCC Business Strategy LCC presence will expand globally Europe Asia & Pacific United States 71,229 43,585 106,228 Southwest Ryanair 42,401 Easyjet 36,959 97,618 JL UA/CO 69,816 AF/KL 22,399 111,159 DL/NW KE 56,693 LH 16,054 86,129 AA 50,358 BA/IB 16,621 SQ [Total Passengers] (thousands) 19,723 CX I

  9. Slide 9: LCC Business Strategy: Future business environment and opportunities

    LCC Business Strategy Further validation of changes and issues in the future business environment and new opportunities for the LCC business 【 Environmental Changes in Japan 】 【Effects of Low Birthrate Aging 【Tough Competition in 【Improved Competitive Posture of Swing】 Population in Full Swing】 Ind

  10. Slide 10: Launch new Tokyo Metropolitan area based LCC soon

    LCC Business Strategy Launch new Tokyo Metropolitan area based LCC soon and preempt the Japanese LCC market Cost Competitive Edge Based on Asian Standard Build an overwhelming cost competitive edge that will enable us to survive in expanding Asia and China JAPAN Expanded Slot LCCs Enter Japan Comp

  11. Slide 11: Brand strategy customized to target customers

    LCC Business Strategy The brand strategy will be customized to target customers and the division of Group Airline functions will be clarified High End Existing demand ANA 《ANA+ANK Merger in Apr.2012 (plan) 》 Mid and wide body / based in the Tokyo Metropolitan Area Entire domestic and international

  12. Slide 12: ANA Group's Growth Strategy

    ANA Group's Growth Strategy Overcome the effects of the earthquake so that we can begin growing again as soon as possible and achieve stable, sustainable growth 《Continue growing as a network airline》 Profitability Corporate value 【FY2011 Management Themes】 B787 12 aircraft introduced Stable and 2

  13. Slide 13: III. FY2011 Financial Results First Quarter (Details)

    Ⅲ. FY2011 Financial Results First Quarter （Details） 【Part Ⅱ】 ©ANA2011 13

  14. Slide 14: Highlights FY11 First Quarter

    Highlights FY11 First Quarter Highlights of Financial Results FY11 1Q and FY10 1Q-4Q  Consolidated operating revenue and income for 1Q posted a narrow loss of 8.1 billion yen (11.0 billion yen year-on-year decline).  8.4 billion yen net loss for the quarter (3.2 billion yen year-on-year decline);

  15. Slide 15: Consolidated Financial Summary: Income Statements

    Consolidated Financial Summary Income Statements 1Q/FY10 1Q/FY11 Difference Operating Revenues 306.8 305.0 -1.7 Operating Expenses 303.8 313.1 + 9.3 Operating Income 2.9 - 8.1 - 11.0 Op. Margin (%) 1.0 - - Non-Op. Gains/Losses - 5.9 - 6.3 - 0.4 Recurring Income - 2.9 - 14.4 - 11.4 Extraordinary Gain

  16. Slide 16: Consolidated Financial Position

    Consolidated Financial Summary Consolidated Financial Position Mar 31, 2011 Jun 30, 2011 Difference Assets 1,928.0 2,083.7 + 155.6 Shareholders' Equity 520.2 499.3 - 20.8 Ratio of Shareholders' Equity (%) 27.0 24.0 - 3.0 Interest Bearing Debts 938.8 1,104.6 + 165.8 Debt/Equity Ratio (times) 1.8 2.2

  17. Slide 17: Consolidated Statements of Cash Flow

    Consolidated Financial Summary Consolidated Statements of Cash Flow 1Q/FY10 1Q/FY11 Difference Cash Flow from Operating Activities 39.4 9.2 - 30.2 Cash Flow from Investing Activities - 89.2 - 133.7 - 44.5 Cash Flow from Financing Activities 87.2 159.9 + 72.7 Net Increase or Decrease 37.3 35.4 - 1.9

  18. Slide 18: Results by Segment

    Consolidated Financial Summary Results by Segment 1Q/FY10 1Q/FY11 Difference Air Transportation 274.5 274.3 - 0.2 Travel Services 32.7 26.4 - 6.2 Total for Reporting Segments 307.2 300.8 - 6.4 Revenues Other 34.1 33.4 - 0.6 Adjustment - 34.5 - 29.1 + 5.3 Total 306.8 305.0 - 1.7 Air Transportation 1.

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

    Air Transportation Business Operating Revenues and Expenses 1Q/FY10 1Q/FY11 Difference Domestic Passengers 143.5 134.5 - 8.9 International Passengers 64.1 69.2 + 5.1 Operating Cargo and Mail 29.1 33.2 + 4.0 Revenues Others 37.7 37.2 - 0.4 Total 274.5 274.3 - 0.2 Fuel and Fuel Tax 61.2 65.0 + 3.8 Lan

  20. Slide 20: Air Transportation Business Operating Income Change

    Air Transportation Business Operating Income Change ・Commission, Advertisement ・In- In-flight service, Ground service, etc. ・Depreciation except Aircraft Other Revenues (¥ billion) Domestic ・Maintenance, etc. Passenger - 0.4 Other Expenses FY11 1Q 1.1 Op. Income FY10 1Q +4.0 Sales- Sales-Linked Op.

  21. Slide 21: Domestic Passenger Operations

    Air Transportation Business Domestic Passenger Operations 1Q/FY10 1Q/FY11 % Y/Y Available Seat Km (million) 13,616 13,331 - 2.1 Revenue Passenger Km (million) 8,398 7,149 - 14.9 Passengers (thousands) 9,566 8,164 - 14.7 Load Factor (%) 61.7 53.6 - 8.0pts Passenger Revenues (¥ billion) 143.5 134.5 -

  22. Slide 22: Trends in Domestic Passenger Operations

    Air Transportation Business Trends in Domestic Passenger Operations 1Q Cumulative Revenue Change Factors 1Q Trends in Domestic Passengers Achieve appropriate levels of revenue through ASK Passenger numbers gradually strengthening as we cuts implemented due to the earthquake seek to control supply

  23. Slide 23: International Passenger Operations

    Air Transportation Business International Passenger Operations 1Q/FY10 1Q/FY11 % Y/Y Available Seat Km (million) 6,656 8,326 + 25.1 Revenue Passenger Km (million) 5,121 5,470 + 6.8 Passengers (thousands) 1,224 1,273 + 4.0 Load Factor (%) 76.9 65.7 - 11.2pts Passenger Revenues (¥ billion) 64.1 69.2 +

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    Intentionally Blank ©ANA2011 24

  25. Slide 25: Trends in International Passenger Operations

    Air Transportation Business Trends in International Passenger Operations 1Q Cumulative Revenue Change Factors 1Q Trends in International Passengers Increase revenues by implementing demand stimulation Results bolstered by new routes and steadily measures in addition to the demand recovery recoveri

  26. Slide 26: Trends in International Passenger Operations: Visitors and Haneda

    Air Transportation Business Trends in International Passenger Operations 1Q Trends in Passengers Visiting Japan 1Q L/F Trends in Haneda International Routes We have been only minimally affected by the Despite the temporary effects of the earthquake, slump compared to the entire market L/F is retur

  27. Slide 27: Domestic Cargo Operations

    Air Transportation Business Domestic Cargo Operations 1Q/FY10 1Q/FY11 % Y/Y Available Ton Km (million) 450 426 - 5.4 Revenue Ton Km (million) 104 108 + 4.5 Revenue Ton (thousand tons) 10,3 108 + 4.7 Domestic Cargo Load Factor (%) 23.1 25.5 + 2.4pts Cargo Revenues (¥ Billion) 7.5 7.9 + 4.6 Unit Reven

  28. Slide 28: Intentionally Blank

    Intentionally Blank ©ANA2011 28

  29. Slide 29: International Cargo Operations

    Air Transportation Business International Cargo Operations 1Q/FY10 1Q/FY11 % Y/Y Available Ton Km (million) 698 888 + 27.1 Revenue Ton Km (million) 485 563 + 16.1 Revenue Ton (thousand tons) 132 140 + 6.2 International Cargo Load Factor (%) 69.5 63.5 - 6.0pts Cargo Revenues (¥ Billion) 20.0 23.6 + 1

  30. Slide 30: Trends in International Cargo Operations

    Air Transportation Business Trends in International Cargo Operations 1Q Cumulative Revenue Change Factors Trends in International Cargo Increase revenues by increasing FSC and ATK The effects of the earthquake were controlled and good volume results achieved (YoY) 35.0% （¥ billion） Revenue Ton kil

  31. Slide 31: IV. FY2011 Earning Forecast

    Ⅳ. FY2011 Earning Forecast ©ANA2011 31

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    Intentionally Blank ©ANA2011 32

  33. Slide 33: Consolidated Earnings Forecast

    Consolidated Earnings Forecast Consolidated Earning Forecast 《Ref.》 As of 24FEB, 11 Original FY10 FY11（E） Difference FY11（E） Operating Revenues 1,357.6 1,410.0 + 52.3 1,500.0 Operating Expenses 1,289.8 1,340.0 + 50.1 1,390.0 Operating Income 67.8 70.0 + 2.1 110.0 Op. Margin (%) 5.0 5.0 - 0.0pts 7.3

  34. Slide 34: Consolidated Earnings Forecast: Earthquake impacts eliminated by 3Q

    Consolidated Earnings Forecast Impacts of the earthquake will be eliminated by 3Q; in 4Q, demand will be as per the initial plan (％) Domestic ASK and Passengers (Year-on-Year） (％) International ASK and Passengers (Year-on-Year) 20 30 Passenger（Result/Forecast） 15 25 ASK（Result/Forecast） 10 20 5 0 1

  35. Slide 35: Earning Forecast by Segment

    Earning Forecast by Segment Earning Forecast by Segment 《Ref.》 As of 24FEB, 11 Original FY10 FY11（E） Difference FY11（E） Air Transportation 1,218.2 1,276.0 + 57.7 1,360.0 Travel Services 159.3 145.0 - 14.3 174.0 Total for Reporting Segments 1,377.6 1,421.0 + 43.3 1,534.0 Revenues Other 138.9 140.0 +

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    Intentionally Blank ©ANA2011 36

  37. Slide 37: Air Transportation Business Operating Revenues and Expenses

    Air Transportation Business Operating Revenues and Expenses 《Ref.》 As of 24FEB, 11 Original FY10 FY11 (E) Difference FY11（E） Domestic Passengers 652.6 659.0 + 6.3 712.0 International Passengers 280.6 327.0 + 46.3 342.0 Operating Revenues Cargo and Mail 125.0 135.0 + 9.9 136.0 Others 159.9 155.0 - 4.

  38. Slide 38: Air Transportation Business Operating Income Change

    Air Transportation Business Operating Income Change Others Revenues Expenses (¥ Billion) +51.5 Cargo △5.0 & Mail Fuel & +10.0 Fuel Tax +16.0 International Passenger Others Expenses +46.5 +35.5 Domestic Passenger Increase in Profit +6.5 Revenues +6.5 67.0 60.5 +58.0 FY10 FY11 Op. Income Op. Income ©A

  39. Slide 39: Earnings Forecast Assumptions: Passenger Operations

    Earnings Forecast Assumptions 《Passenger Operations》 Assumptions for FY11（vs. FY10） Domestic Passengers International Passengers 1H(E) 2H(E) FY11(E) 1H(E) 2H(E) FY11(E) Available Seat Km +0.6 -0.9 -0.1 +21.5 +9.8 +15.3 Revenue Passenger Km -9.4 +2.2 -3.8 +9.5 +12.8 +11.2 Passengers -9.5 +2.2 -3.9 +8

  40. Slide 40: Earnings Forecast Assumptions: Cargo Operations

    Earnings Forecast Assumptions 《Cargo Operations》 Assumptions for FY11（vs. FY10） Domestic Cargo International Cargo １H(E) 2H(E) FY11(E) １H(E) 2H(E) FY11(E) Available Ton km -3.2 -1.0 -2.1 +22.2 +14.9 +18.4 Revenue Ton km +7.4 -0.1 +3.6 +11.8 +10.7 +11.2 Revenue Ton +7.2 -1.2 +2.9 +6.5 +9.8 +8.2 Load

  41. Slide 41: Consolidated Balance Sheet (Plan)

    Consolidated Balance Sheet Consolidated Balance Sheet (Plan) 《Ref.》 As of 24FEB, 11 Original Mar 31, 2011 Mar 31, 2012(E) Difference FY11（E） Assets 1,928.0 1,992.0 + 63.9 1,876.0 Shareholders' Equity 520.2 535.0 + 14.7 542.0 Ratio of Shareholders‘ Equity (%) 27.0 26.9 - 0.1pts 28.9 Interest Bearing

  42. Slide 42: Consolidated Cash Flows (Plan)

    Consolidated Cash Flows 《Ref.》 As of 24FEB, 11 Consolidated Cash Flows (Plan) Original FY10 FY11(E) Difference FY11（E） Net Income 23.3 20.0 - 3.3 45.0 Depreciation and Amortization 118.4 127.0 + 8.6 129.0 Principal Payment for Aircraft Lease 13.4 15.0 + 1.6 15.0 Cash Flow from Operating Activities *

  43. Slide 43: V. Supplemental Reference

    Ⅴ. Supplemental Reference ©ANA2011 43

  44. Slide 44: Fuel Price and Exchange Rate

    Supplemental 燃油・為替 Reference Fuel Price and Exchange Rate Market Index and Assumptions FY11(E) Dubai Crude Oil (USD/BBL) 105 Kerosene (USD/BBL) 125 Exchange Rate (JPY/USD) 80 Hedging Ratio （as of Jun, 2011） FY11 FY12 FY13 FY14 FY15 100 Fuel 80 Currency 60 40 20 0 Fuel Hedge Ratio 60% 30% 5% 5% - Cur

  45. Slide 45: International Passenger Results by Destination

    Supplemental Reference International Passenger Results by Destination 1Q/FY10 1Q/FY11 Difference Composition Composition North America 29.6 27.0 - 2.6 Europe 19.4 19.6 + 0.2 Passenger China 29.3 26.9 - 2.3 Revenue Asia 18.8 22.5 + 3.7 Resort 2.9 4.0 + 1.0 North America 31.5 29.8 - 1.7 Europe 19.7 20

  46. Slide 46: International Cargo Results by Destination

    Supplemental Reference International Cargo Results by Destination 1Q/FY10 1Q/FY11 Difference Composition Composition North America 24.3 23.6 - 0.6 Europe 13.9 17.4 + 3.6 Cargo China 37.0 34.1 - 2.9 Revenue Asia 17.7 20.5 + 2.8 Others 7.1 4.3 - 2.8 North America 35.3 32.8 - 2.5 Europe 16.8 22.8 + 6.0

  47. Slide 47: Aircraft in Service

    Supplemental Reference Aircraft in Service Mar,2011 JUN,2011 Change Owned Leased Boeing 747-400 (International) 1 0 -1 0 0 Boeing 747-400 (Domestic) 10 10 - 10 0 Boeing 777-300ER 19 19 - 16 3 Wide-Body Boeing 777-300 7 7 - 7 0 Boeing 777-200ER 7 7 - 4 3 Boeing 777-200 16 16 - 14 2 Boeing 767-300ER 2

  48. Slide 48: 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

  49. Slide 49: 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

  50. Slide 50: 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 ©ANA2011 50

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