KOREAN AIR 1Q17 FINANCIAL RESULTS

Transcription

1 KOREAN AIR 1Q17 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 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) Q17 Changes Rate Current Assets 3,328 3, % Cash & Cash equivalent 1,090 1, % Non-Current Assets 20,629 20, % Aircraft related assets 13,728 13, % Investment in associates % Total Assets 23,957 23, % Financial Liabilities 16,305 14,989-1, % Other Liabilities 5,778 6, % Total Liabilities 22,082 21,079-1, % Total Equity 1,874 2, % 3

4 Income Statement (Consolidated) (billion KRW) 1Q16 1Q17 Changes Rate Sales 2,867 2, % Operating Expense 2,544 2, % Operating Profit % Non Operating Profit ,025 Foreign currency related gain, net Interest Expense, net Income Before Tax Turn to Profit Net Income Turn to Profit 4

5 Income Statement (Non-consolidated) (billion KRW) 1Q16 1Q17 Changes Rate Sales 2,811 2, % Operating Expense 2,503 2, % Operating Profit % Non-Operating Profit Foreign currency related gain, net Interest expense, net Income Before Tax Turn to Profit Net Income Turn to Profit 5

6 Borrowings (Non-consolidated) End of 2016 (As of) Mar. 31, 2017 Changes Balance (billion) Ratio Balance (billion) Ratio Balance (billion) Ratio USD % % % KRW 3, % 3, % % Others (EUR/JPY/HK D in USD) 계 (KRW) % % % 15, % 14, % -1, % - FX Rate as of Dec. 31 st, 2016 : USD1 / KRW1, FX Rate as of Mar. 31 st, 2017 : USD1 / KRW1,

7 Revenue Composition (Non-consolidated) 1Q2016 (2,811 billion KRW) 1Q2017 ( 2,811 billion KRW) Cargo 20.0% Others 10.3% Aerospace 8.6% Cargo 22.8% Others 11.5% Aerospace 6.0% International Passenger 57.5% Domestic International Passenger 56.0% Domestic Passenger Passenger 3.6% 3.7% 7

8 Passenger Traffic International Domestic 1Q16 1Q17 YoY 1Q16 1Q17 YoY Capacity (Mil ASK) 23,367 22, % % JAN 8,113 7, % % FEB 7,571 7, % % MAR 7,682 7, % % Traffic (Mil RPK) 18,006 17, % % JAN 6,627 6, % % FEB 5,832 5, % % MAR 5,547 5, % % L/F(%) 77.1% 80.3% 3.2%p 72.3% 75.4% 3.0%p Yield (KRW) % % Yield (US Cent) % % 8

9 Passenger Revenue by Route Operations [billion KRW] 800 1Q16 1Q % -10% % -6% -3% +11% -13% 0 Domestic Japan China SEA Oceania Americas Europe [Revenue : Routes] Oceania 5% SEA 24% Americas 25% 1Q17 Chian 13% Europe 14% Domestic 6% Japan 13% [Revenue : Regional Sales] Europe 6% Americas 15% SEA 7% China 9% Japan 8% 1Q17 Korea 55%

10 Passenger Business Overview 1Q Business Summary Traffic(RPK) Changes : Europe 12%, SEA 3%, China 1%, Oceania 2%, Americas 6%, Japan 8% Number of Passenger Carried : 1% (Korea Outbound 5%, Overseas 8% ) 2Q Business Outlook & Plan Expect Korea outbound demand increase due to long holiday in May Plan to minimize the THAAD impact by increasing capacity to SEA, Japan, etc. New route : Incheon Barcelona (3 flights/week from Apr. 28) Expanded routes: Incheon LA, San Francisco, Seattle, Amsterdam, Vienna Reduced routes : Incheon Narita 10

11 Cargo Traffic Cargo (International + Domestic) 1Q16 1Q17 YoY Capacity (Mil AFTK) 2,504 2, % JAN % FEB % MAR % Traffic (Mil FTK) 1,872 2, % JAN % FEB % MAR % L/F (%) 74.8% 78.2% 3.4%p Yield (KRW) % Yield (US Cent) % 11

12 Cargo Revenue by Route Operations [billion KRW] 400 1Q16 1Q % +12% +32% +8% +33% 1% -1% Domestic Japan China SEA Oceania Americas Europe [Revenue : Routes] [Revenue : Regional Sales] Americas 40% 1Q17 Europe 27% Japan Domestic 1% Americas 13% Europe 13% 1Q17 Korea 28% Oceania 1% SEA 16% 5% China 10% SEA 15% China 22% Japan 9%

13 Cargo Business Overview 1Q Business Summary Traffic(FTK) Changes : Japan 24%, SEA 18%, China 9%, Europe 6%, Americas 6%, Oceania 6% Total Tonnage of Carried : 11% (Korea Outbound 4%, Overseas 13% ) 2Q Business Outlook & Plan Expect air cargo demand increase due to recovery in developed country consumption and Korea s exports Plan to expand new air cargo products and to improve profitability by providing flexible capacity 13

14 Operating Expense Breakdown (Non-consolidated) 1Q16 (2,503 billion KRW) 1Q17 ( 2,626 billion KRW) Rentals 3% Commission 3% In-flight Fuel 19% Labor 18% Depreciation 17% Rentals 3% Commission 3% Fuel 24% Labor 17% Depreciation 16% Service 4% Maintenance 4% Airport related 12% Others 20% In-flight Service 4% Maintenance 4% Airport related 11% Others 18% 14

15 Fleet Status (As of March 31 th, 2017) Type No. of Aircrafts Delivery in 2017(Month) A A B B747-8I B B B CS Passenger Total B747F 13 B747-8F 7 B777F 11 9 Cargo Total 31 1 Total

16 Thank you 16