KOREAN AIR 2Q17 FINANCIAL RESULTS

Transcription

1 KOREAN AIR 2Q17 FINANCIAL RESULTS 1

2 Disclaimer This presentation is for informational purposes only, contains preliminary financial and other information about Korean Air Lines Co., Ltd. and is subject to updating, revision, amendment and completion. This presentation does not and is not intended to constitute or contain any offer of securities for sale or a solicitation of an offer to purchase any securities of Korean Air Lines Co., Ltd. or any other company and neither this presentation nor anything contained herein shall form the basis of any contract or commitment. Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements or trend information that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the forward-looking statements in this presentation. In addition to statements which are forwardlooking by reason of context, including without limitation, statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth opportunities, and risk adequate pricing, the words "may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, or continue", "potential, future, or further", and similar expressions are intended to identify forward-looking statements. Korean Air Lines Co., Ltd. assumes no obligation to update or revise any such statements or any other information contained herein to reflect events or circumstances that may arise after the date of this presentation. 2

3 Financial Position (Consolidated) (billion KRW) 2016 End of Jun Changes Rate Current Assets 3,328 3, % Cash & Cash equivalent 1,090 1, % Non-Current Assets 20,629 21, % Aircraft related assets 13,728 14, % Investment in associates % Total Assets 23,957 24, % Financial Liabilities 16,305 15, % Other Liabilities 5,778 6, % Total Liabilities 22,082 21, % Total Equity 1,874 2,983 1, % 3

4 Income Statement (Consolidated) (billion KRW) 2Q16 2Q17 Changes Rate Sales 2,818 2, % Operating Expense 2,659 2, % Operating Profit % Non-Operating Profit Foreign currency related gain/loss, net Interest expense, net Income Before Tax Net Income

5 Income Statement (Non-consolidated) (billion KRW) 2Q16 2Q17 Changes Rate Sales 2,767 2, % Operating Expense 2,619 2, % Operating Profit % Non-Operating Profit Foreign currency related gain/loss, net Interest expense, net Income Before Tax Net Income

6 Borrowings (Non-consolidated) (billion) End of 2016 (As of) Jun. 30, 2017 Changes Balance (billion) Ratio Balance (billion) Ratio Balance (billion) Ratio USD % % % KRW 3, % 4, % % Others (EUR/JPY/HK D in USD) SUM (KRW) % % % 15, % 14, % % - FX Rate as of Dec. 31 st, 2016 : USD1 / KRW1, FX Rate as of Jun. 30 st, 2017 : USD1 / KRW1,

7 Revenue Composition (Non-consolidated) 2Q2016 (2,767 billion KRW) 2Q2017 ( 2,851 billion KRW) Cargo 21.5% Others 10.2% Aerospace 8.2% International Passenger 55.3% Domestic Passenger 4.8% Cargo 23.6% International Passenger 54.5% Others 10.3% Aerospace 6.6% Domestic Passenger 5.0% 7

8 Passenger Traffic International Domestic 2Q16 2Q17 YoY 2Q16 2Q17 YoY Capacity (Mil ASK) 22,925 23, % 968 1, % APR 7,391 7, % % MAY 7,816 7, % % JUN 7,718 7, % % Traffic (Mil RPK) 17,894 18, % % APR 5,661 5, % % MAY 5,949 6, % % JUN 6,284 6, % % L/F(%) 78.1% 79.4% 1.4%p 80.6% 80.1% -0.6%p Yield (KRW) % % Yield (US Cent) % % 8

9 Passenger Revenue by Route Operations [billion KRW] 800 2Q16 2Q % % -1% -26% +17% +4% +18% 0 Domestic Japan China SEA Oceania Americas Europe [Revenue : Routes] America s 28% Europe 21% [Revenue : Regional Sales] Europe 6% Americas 16% Oceania 3% SEA 19% 2Q17 Chian 11% Domesti c 8% Japan 10% SEA 9% China 6% Japan 6% 2Q17 Korea 57%

10 Passenger Business Overview 2Q Business Summary Traffic(RPK) Change : Europe 14%, SEA 11%, Oceania 4%, Americas 1%, Japan 6%, China 27% Number of Passengers Carried : 3% (Korea Outbound 12%, Overseas 8% ) 3Q Business Outlook & Plan Expect Korea outbound demand increase during summer peak season Plan to add alternative routes to absorb demand from THAAD impact Frequency Expansion : Incheon Barcelona, San Francisco, Vienna, Bangkok, Ulaanbaatar, Urumqi Frequency Reduction : Incheon - Moscow 10

11 Cargo Traffic Cargo (International + Domestic) 2Q16 2Q17 YoY Capacity (Mil AFTK) 2,687 2, % APR % MAY % JUN % Traffic (Mil FTK) 2,060 2, % APR % MAY % JUN % L/F (%) 76.7% 77.9% 1.3%p Yield (KRW) % Yield (US Cent) % 11

12 Cargo Revenue by Route Operations [billion KRW] 400 2Q16 2Q % +4% +37% +4% +26% +8% +7% Domestic Japan China SEA Oceania Americas Europe [Revenue : Routes] [Revenue : Regional Sales] Europe Americas 43% Oceania 2Q17 SEA 16% Europe 25% Japan 5% China 9% Domestic 1% Americas 13% SEA 16% 12% 2Q17 China 23% Korea 27% Japan 9% 1%

13 Cargo Business Overview 2Q Business Summary Traffic(FTK) Change : Japan 21%, Oceania 18%, SEA 11%, Americas 2%, China 2%, Europe 2% Total Tonnage Carried : 6% (Korea Outbound 2%, Overseas 5% ) 3Q Business Outlook & Plan Expect positive impact from recovering global economy and Korea export Plan to improve profitability with flexible capacity and customer based marketing 13

14 Operating Expense Breakdown (Non-consolidated) 2Q16 (2,619 billion KRW) 2Q17 ( 2,690 billion KRW) Rentals 3% Commission 3% In-flight Fuel 20% Labor 17% Depreciation 17% Rentals 3% Commission 3% Fuel 23% Labor 19% Depreciation 15% Service 4% Maintenance 4% Airport related 12% Others 20% In-flight Service 4% Maintenance Airport related 11% Others 18% 4% 14

15 Fleet Status (As of Jun 30 th, 2017) Type No. of Aircrafts Delivery in 2H17(Month) A A B B747-8I 9 7 B B B CS Passenger Total B747F 12 B747-8F 7 B777F Cargo Total 30 1 Total

16 Thank you 16