KOREAN AIR 2Q18 Financial Results

Transcription

1 KOREAN AIR 2Q18 Financial Results

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 forward-looking 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 (Non-consolidated) Dec. 31, 2017 Jun. 30, 2018 Change (Unit: KRW billion) Rate of Change Current Assets 3,220 3, % Cash & Cash Equivalent % Non-Current Assets 20,203 20, % Aircraft Related Assets 14,308 14, % Total Assets 23,423 24, % Financial Liabilities 13,829 14, % Other Liabilities 5,922 6, % Total Liabilities 19,751 20, % Total Equity 3,672 3, % Debt Ratio 538% 627% +89%p 3

4 Income Statement (Non-consolidated) 2Q17 2Q18 Change Rate of Change Sales 2,851 3, % Operating Expense 2,690 2, % Fuel Expense % Labor Expense % Operating Profit % Non-Operating Profit Foreign Currency Related Gain/Loss, Net Interest Expense, Net Income Before Tax Net Income (Unit: KRW billion) - FX Rate as of Mar. 31, 2018 : KRW 1,066.5 / USD 1 - FX Rate as of Jun. 30, 2018 : KRW 1,121.7 / USD 1 4

5 Revenue Changes (Non-consolidated) 2Q18 Revenue: KRW 3,014 bil. - +6% YoY growth (KRW 163 bil.) Cargo 23.6% (Unit: KRW billion) Domestic Passenger 2Q18 2Q ,000 1,500 2, (-8%) Others 10.3% International Passenger +161 (+10%) Aerospace 4.8% Cargo +40 (+6%) International Passenger 56.9% Domestic Passenger 4.4% Aerospace -44 (-23%) Others +17 (+6%) 5

6 Passenger Revenue by Route Operations (Unit: KRW billion) 800 2Q17 2Q % % +7% 200-8% +13% +23% -2% 0 Domestic Japan China SEA Oceania Americas Europe [Revenue by Routes] Americas 28% Europe 21% [Revenue by Region] Europe 5% Americas 16% Oceania 3% SEA 19% 2Q18 China 12% Domestic 7% Japan 10% SEA 9% China 7% Japan 6% 2Q18 Korea 57%

7 Passenger Business Overview 2Q18 Business Summary Traffic (RPK) Changes : China 25%, Japan 10%, SEA 6%, Europe 6%, Americas 1%, Oceania 3% No. of Passengers Carried : 5% (Korea Outbound 5%, Overseas 5% ) 3Q18 Business Outlook & Plan Expect strong demand due to peace on the Korean Peninsula, holiday (Korean Thanksgiving day) in September, and KE-DL JV Focus on improving profitability through servicing new routes while risk in fuel price and interest rate movement remains uncertain New Route: Incheon - Zagreb Frequency Expansion: Incheon - Kathmandu, Istanbul, Saint Petersburg, Moscow Frequency Reduction: Incheon - Auckland 7

8 Passenger Traffic International Domestic 2Q17 2Q18 YoY 2Q17 2Q18 YoY Capacity (mil. ASK) 23,142 23, % 1, % April 7,345 7, % % May 7,849 8, % % June 7,948 8, % % Traffic (mil. RPK) 18,382 19, % % April 5,853 6, % % May 6,120 6, % % June 6,409 6, % % L/F(%) 79.4% 80.7% 1.3%p 80.1% 80.3% 0.2%p Yield (KRW) % % Yield (US Cent) % % 8

9 Cargo Revenue by Route Operations (Unit: KRW billion) 400 2Q17 2Q % % -6% +24% +30% -3% -2% Domestic Japan China SEA Oceania Americas Europe [Revenue by Routes] [Revenue by Region] Europe Europe 11% Korea Americas 43% 2Q18 24% Japan 6% China Domestic 1% Americas 14% SEA 14% 2Q18 24% Japan 13% Oceania 1% SEA 15% 10% China 24%

10 Cargo Business Overview 2Q18 Business Summary Traffic (FTK) Changes : Japan 13%, China 3%, Americas 2%, Europe 7%, SEA11%, Oceania 19% Total Tonnage Carried : 2% (Korea Outbound 13%, Overseas 2% ) 3Q18 Business Outlook & Plan Increased global air cargo volume and high fuel price expected Diversification of the network through servicing high-growth routes such as Delhi, India, utilizing KE-DL JV routes Securing cost competitiveness in high fuel price market by way of operating fuel-efficient cargo flights 10

11 Cargo Traffic Cargo (international + Domestic) 2Q17 2Q18 YoY Capacity (mil. AFTK) 2,712 2, % April % May % June % Traffic (mil. FTK) 2,114 2, % April % May % June % L/F (%) 77.9% 75.9% -2.0%p Yield (KRW) % Yield (US Cent) % 11

12 Operating Expense Changes (Non-consolidated) 2Q18 Operating Expense: KRW 2,931 bil. - +9% YoY increase (KRW 242 bil.) 2Q18 2Q17 (KRW billion) ,000 1,500 Fuel 27% Labor 19% Fuel +180 (+29%) Rentals 3% Labor +39 (+8%) Commission 4% In-flight Service 4% Maintenance 3% Airport Related 10% Others 16% Depreciation 14% Depreciation Others +5 (+1%) +18 (+2%) 12

13 Fleet Status (As of June 30, 2018) Type of Fleet No. of Aircrafts Delivery in 2018 (Month) A A B B747-8I 10 B B B CS Passenger Total B747F 6 B747-8F 7 B777F 12 Cargo Total 25 0 Total

14 Borrowings (Non-consolidated) Dec. 31, 2017 Jun. 30, 2018 Change Currency Balance (billion) Ratio Balance (billion) Ratio Balance (billion) Ratio USD % % % KRW 4, % 4, % % Others (EUR, JPY, HKD in USD) % % % SUM (KRW) 13, % 14, % % - FX Rate as of Dec. 31, 2017 : KRW 1,071.4 / USD 1 - FX Rate as of Jun. 30, 2018 : KRW 1,121.7 / USD 1 14

15 Financial Position (Consolidated) Dec. 31, 2017 Jun. 30, 2018 Change (Unit: KRW billion) Rate of Change Current Assets 3,582 3, % Cash & Cash Equivalent 761 1, % Non-Current Assets 21,066 21, % Aircraft Related Assets 14,308 14, % Total Assets 24,649 25, % Financial Liabilities 14,853 15, % Other Liabilities 6,045 6, % Total Liabilities 20,898 21,933 1, % Total Equity 3,751 3, % Debt Ratio 557% 654% +97%p 15

16 Financial Position (Consolidated) 2Q17 2Q18 Change (Unit: KRW billion) Rate of Change Sales 2,905 3, % Operating Expense 2,732 3, % Operating Profit % Non-Operating Profit Foreign Currency Related Gain/Loss, Net Interest Expense, Net Income Before Tax Net Income

17 Thank you 17