Korean Air Q Financial Results. Oct 19, 2011

Transcription

1 Korean Air Q Financial Results Oct 19, 2011

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 Summarized Financial Position Statements (Consolidated) (Unit : billion KRW) As of Sep 30, 2011 As of Dec 31, 2010 Changes (YOY) Amount Ratio Current Assets 2, , % Cash & Cash equivalents % Non-Current Assets 18, , , % Aircraft 10, , , % Investment in associates 2, , % Total Assets 21, , , % Financial Liabilities 14, , , % Current financial Liabilities 4, , % Non-current financial Liabilities 9, , , % Other Liabilities 4, % Total Liabilities 18, , , % Total Shareholder s Equity 3, , % 3

4 Summarized Operation Statements (Consolidated) Q Q Changes (YOY) Q Accumulated Q Accumulated Changes (YOY) Operating Revenue 3, , % 9, , % Operating Expense 3, , % 8, , % Operating Profit , % Other Income/Expense Foreign currency translation gain/loss Finance Income/Expense Net interest expense Profit share of accounted associates using equity method Income before Tax Net Income % % (Unit : billion KRW) 4

5 Summarized Operation Statements (Non-consolidated) (Unit : billion KRW) Q Q Changes (YOY) Q Accumulated Q Accumulated Changes (YOY) Operating Revenue 3, , % 8, , % Operating Expense 2, , % 8, , % Operating Profit % , % Other Income/Expense Foreign currency translation gain/loss Finance Income/Expense Net interest expense Income before Tax Net Income

6 Borrowings Currency As of Sep 30, 2011 As of Jun 30, 2011 Changes Local Weight Local Weight Amount Ratio USD 6.54 bil 59.0% 6.04% 56.3% 0.5 bil 8.3% KRW 4,284.1 bil 32.8% 4,360.2 bil 34.5% bil -1.2% JPY 66.4 bil 7.8% 72.3 bil 8.8% -5.9 bil -8.2% EUR bil 0.4% bil 0.4% bil -11.1% Total (in USD) bil 100% bil 100% 0.35 bil 3.3% Applied FX rates per $ 1 USD : KRW 1,179.50, JPY 76.76, EUR

7 Revenue Composition 3Q Operating Revenue : 3.19 trillion KRW (+3.4% YOY) Cargo 26.4% Others 5.9% International Passenger 58.8% Aerospace 3.2% Catering 0.6% Hotel/Limousine 0.4% Domestic Passenger 4.7%

8 Passenger Traffic Description Domestic Passenger International Passenger Q Q Changes Q Q Changes Supply (Mil ASK) 1,058 1, % 21,570 19, % Jul % 7,090 6, % Aug % 7,518 6, % Sept % 6,962 6, % Traffic (Mil RPK) % 17,059 15, % Jul % 5,789 5, % Aug % 6,085 5, % Sept % 5,185 4, % L/F(%) 66.7% 67.0% -0.3%p 79.1% 78.4% 0.7%p Yield (US Cent) % % * Mileage passengers included in 2011 RPK figures

9 Passenger Revenue Breakdown by Route Operation Domestic Japan China SEA Americas Europe Oceania Q Q [Unit : billion KRW] Europe 15% Oceania 4% Domestic 7% Japan 15% Europe 15% Oceania 4% Domestic 8% Japan 15% Americas 33% Q Q China 12% Americas 35% SEA 14% China 11% SEA 12%

10 Passenger Revenue Breakdown by Regional Sales Korea Japan China SEA Americas Europe Q Q [Unit : billion KRW] Europe Europe Americas 15% 5% Korea 51% Americas 16% 5% Korea 54% SEA 6% China 8% Japan 15% SEA 5% Q Q China 7% Japan 13%

11 Passenger Business Overview 3Q Business Summary Total carried passenger increased 8% (Korea inbound + Transit increased 21%) China outbound and Japan outbound increased 33% and 21% each (China-US transit increased 41%) RPK increased : SEA(+24%), China(+12%), America(+10%), Japan(+7%), Europe(+5%) Enhanced profitability and competitiveness by introducing A380 (New York, Paris) 4Q Business Plan Sales expansion of High class + Business class with new aircraft introduction (A380, B777 etc) New routes : Busan/Cebu, Incheon/Palau, Chungju/Taipei Resuming routes : Aomori, Hakodate, Oita, Nagasaki, Kota Kinabalu, Busan/Guam Frequency Increase : Bangkok, Siem Reap, Shizuoka, Manila, Busan/Siem Reap, Busan/Hong Kong, Chungju/Bangkok 11

12 Cargo Traffic Description Cargo (domestic + international) Q Q Changes Supply (Mil AFTK) 3,066 3, % Jul 1,052 1, % Aug 1,018 1, % Sept 996 1, % Traffic (Mil FTK) 2,261 2, % Jul % Aug % Sept % L/F(%) 73.8% 74.7% -0.9%p Yield (US Cent) % 12

13 Cargo Revenue Breakdown by Route Operation Q Q [Unit : billion KRW] Domestic Japan China SEA Americas Europe Oceania Europe 31% Oceania 1% Domestic 1% Japan Oceania 1% 6% Europe China 27% 11% Q Q SEA 13% Domestic 1% Japan 5% China 10% SEA 12% Americas 37% Americas 44%

14 Cargo Revenue Breakdown by Regional Sales Q Q [Unit : billion KRW] Korea Japan China SEA Americas Europe Americas 12% Europe 12% Korea 29% Americas 9% Europe 8% Korea 31% SEA 14% SEA 15% Q Q China 21% Japan 12% China 27% Japan 10%

15 Cargo Business Overview 3Q Business Summary America(+11%), Europe(+5%) outbound increased while Japan(-5%), SEA(-4%) and China(-10%) outbound decreased Korea outbound recorded a 13% decrease due slow demand of IT products Started regular scheduled routes : Spain (Zaragoza), Trans Atlantic (New York-Brussels) 4Q Business Plan Enhance profitability by focused operation on Profitable routes and developing new markets New air cargo traffic created with starting of Korea-US FTA Slow demand of IT products is expected to continue 15

16 Expense Breakdown 영업수익 x 억원 Q (2,977.8 billion KRW) Q (2,666.2 billion KRW) Sales Comission 3.9% Airport Related 10.0% Rental & Others 18.6% Jet Fuel 40.9% Labor 13.0% Sales Comission 4.7% Airport Related 11.7% Rental & Others 19.9% Jet Fuel 34.1% Labor 16.3% Depreciation Depreciation 13.6% 13.3% 16

17 Key Expenses (Unit : billion KRW) Q Q Changes Jet Fuel 1, % Consumed Amt (Mil bbl) % Average Unit Price (U$) % Labor % A/C Rental % No. of rented A/C (as end of 3Q) % A/C Depreciation % No. of A/C (as end of 3Q) % 17

18 Fleet Status & Delivery Plan Fleet Type Current Status (as of Sept 30, 2011) Delivery plan for Q A A A B B B Passenger TTL B747F 24 1 Cargo TTL 24 1 Grand Total Above chart does not include A/C rented out to Jin Air and Uzbekistan Airways 18

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