• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Cea
 

Cea

on

  • 250 views

 

Statistics

Views

Total Views
250
Views on SlideShare
249
Embed Views
1

Actions

Likes
0
Downloads
0
Comments
0

1 Embed 1

http://www.corponline.org 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Cea Cea Presentation Transcript

    • China Eastern Airlines2012 Results Announcement 2013.3.27
    • DisclaimerThis presentation contains forward‐looking forecast and statements that reflect thecompany’s current opinions on future events and its future financial performance.These opinions were based on certain assumptions, which were determined byvarious risk factors and subject to change. This presentation does not give theassurance that the events predicted will actually occur, the forecast will materialize, orthe assumptions made were correct. The actual results may deviate materially fromthe forecast.This presentation is prepared under IFRS. Except for otherwise stated, 2012, 2011 and2010 financial and operating figures include Shanghai Airlines Company Limited,while 2009 and prior years do not. 2012 financial figures are VAT‐based, while 2011and prior years are based on business tax.
    • Industry Circumstances Brent oil prices The international crude oil prices stayed at 140 120 high levels in general 100 80 Slowdown in RMB appreciation against USD 60 40 Normalized impact from the development of 20 high–speed railway 0 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 The Japanese market was under the USD/CNY 6.9 influence of geopolitical factors 6.8 6.7 6.6 Strong growth in demand for private travel 6.5 6.4 Freight markets were still stuck in a trough 6.3 6.2 6.1 6 5.9 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 1
    • Results Highlights(RMB million) 2011 2012 YoY ChangeTotal Turnover 83,465 86,973 4.2%Operating expenses 79,292 82,745 4.4%Operating profit 4,173 4,228 1.3%Profit attributable to shareholders 4,576 2,954 -35.4%EBITDAR 15,758 16,832 6.8% (RMB)Earning per share 0.41 0.26 -35.4%Cash flows from operating activities 13,623 12,617 -7.4%ATK(million) 18,662.5 19,721.4 5.67%RTK(million) 13,402.1 14,406.5 7.49%Number of aircraft 377 416 39Overall load factor 71.81% 73.05% 1.24ptsDaily utilization rate of aircraft(hours) 9.84 9.79 -0.05 2
    • Breakdown of Traffic Revenue Traffic Revenue Breakdown Traffic Revenue Breakdown by Area 90,000 3.8% 90,000 80,000 80,000 4.6% 8,025 4.9% 70,000 8,080 70,000 29.4% 30.6% 60,000 60,000 RMB MM RMB MM 50,000 50,000 40,000 40,000 68,434 71,419 30,000 30,000 65.8% 64.8% 20,000 20,000 10,000 10,000 0 0 2011 2012 2011 2012 Passenger Cargo Domestic International Regional Note:Traffic Revenue just includes Passenger and Cargo Revenue 3
    • Passenger ‐ Data Highlights YoY Passenger load factor and Passenger numbers 2012 Change 78.89% 79.81% 80,000 77.98% 80%Passenger revenues 72.16% 71,419 4.36% 73,077(RMB million) 60,000 64,930 68,725 70% 40,000 60%ASK (million) 136,723.95 6.91% 44,043 20,000 50% 2009 2010 2011 2012RPK (million) 109,112.68 8.14% Passenger numbers Passenger 载客人数(千人) (thousand time) 客座率 load factorPassenger numbers RASK & RRPK 73,077.06 6.33%(thousand time) 0.8 0.68Passenger load 0.7 0.65 79.81% 0.92pts 0.6 0.54 0.52factor 0.5 0.4RASK (RMB) 0.52 -2.38% 0.3 0.2 0.1RRPK (RMB) 0.65 -3.50% 0 RASK RRPK 2011 2012 4
    • Passenger ‐ Domestic Market Follow market trend and deploy capacity Normalized impact of high‐speed railway accurately Increase capacity for peak seasons Slowdown in growth rate of business travelers 北京 太原 石家庄 Maintaining relatively high passenger 兰州 load factor 上海 成都 domestic passenger load factor from Jan-Dec 昆明84% 广州 深圳 香港82%80%78% In July 2011, Beijing–Shanghai High‐Speed 76% Railway officially commenced its operation74% Impact reduces as route distance increases 72% Impact weakened over time Respond and seek cooperation actively 2012 5
    • Passenger ‐ International and Regional Markets Passenger load factor of international routes Japanese routes are affected by geopolitical factors increased by 4.4% in general Europe, US and Australia: launched new routes and increased frequency of flights Regional: emphasized on the Taiwan Market international passenger load factor from Jan-Dec 86% 84% 82% 80% Flexibly adjusted capacity of Japanese routes 78% based on market demands: 76% Jan‐Aug increased capacity YoY 74% Sep‐Dec decreased capacity YoY 72% In Sep‐Dec, passenger load factor and passenger traffic volume of Japanese routes experienced 2012 certain extent of decrease 6
    • Passenger ‐ Hub Construction Significant increase in opportunities for flight connections  Market shares in core hub (Shanghai 3000 2550 2791 Number of OD in core markets Pudong) and regional hubs (namely, 2500 Kunming and Xi’an) were 36.6%, 42.1% 2000 and 33.2%, respectively15001000 636 713  Number of transfer travelers and 500 261 396 connection opportunities obviously 0 increased 上海 Shanghai 昆明 Kunming 西安 Xi’an 2011 2012  Launching of “Air‐Rail Service” products Continuous increase in transfer travelers as a collaboration of the airline and railways bureau200 179.7 Number of transfer travelers (ten thousand)160 147.0  Cooperate with Pudong Airport to 120 renovate Terminal 1 80 40 31.1 33.6 17.8 14.8  Effectively integrated resources for 0 ground handling of Pudong Airport 上海 Shanghai 昆明 Kunming 西安 Xi’an 2011 2012 7
    • Passenger ‐ Brand and Customer Services % of second boarding of frequent flyer increased steadily  Honored by various awards including 2200 17.0% 18.0% “Golden Tripod Award”, “Golden 2000 15.9% 17.0% Bauhinia Award” and “Top 50 Most 1800 1866 16.0% Valuable Brands in China” 1600 15.0% 1400 1574 14.0%  Punctuality rate was 77.82%, 1200 13.0% representing 3pts higher than the 1000 2011 2012 12.0% industry average Number of % of second boarding of 常旅客数量 常旅客二次乘机比 frequent flyer frequent flyer  Further increase in direct sales Continuous growth of Group clients business  Upgraded and renovated hardware 91.5 (RMB 100Million) facilities such as ground VIP lounges 100 5000 80 55 4000 4555 60 3796 40 3000 20 2000 0 2011 2012 No. of corporate 集团客户数量 集团客户收入 the Revenue from clients corporate clients 8
    • Passenger –Four Core Products Eastern Elite Eastern Priority To provide high‐end travelers with To offer high–value travelers full‐range and personalized comfortable travelling experience butler–style service Eastern Far Reach Eastern Transfer To plan packages products for To enhance quality of transfer and international long‐haul passengers connection service of CEA’s hubs 9
    • Passenger ‐ Alliance and Cooperation SKYTEAM Non‐SKYTEAM Cooperation Cooperation Develop Code‐Sharing within alliance Code‐sharing cooperation Jointly operate routes with Air France SPA with several foreign airlines Four airlines’ Cooperation project named “Great China Connection” Integrated electronic Implement unified ticketing agreement with management over cabin several foreign airlines space within alliance 10
    • Passenger ‐ Jetstar Hong Kong Progress of Jetstar Hong Kong Project  In August 2012, both parties signed a formal shareholders cooperation agreement Hong Kong  In September 2012, Jetstar Hong Kong obtained the business registration certificate  At the end of January 2013, Jetstar Hong Kong HTA ULN passed the anti‐trust investigation conducted VVO CTS by PRC Ministry of Commerce SDJ ICN YOK KIX  Endeavour to commence operation within FUK NGO IXC KTM OKA 2013 DEL DAC MDL TPE CCU CNX HAN KHH HYD CGP LXG BLR RGN BKK MAA MNL  Fleet is expected to increase from two A320 PNH SGN CGY HKT CEB CMB DVO BWN MES KUL SIN BPN aircraft for the initial operation stage to 18 JKT SRG aircraft in 2015 SUB BDO DPS 11
    • Cargo ‐ Data Highlights YoY Freight carried and Freight load factor 2012 change 2000 61.81% 63.39% 70% 60.37%Freight traffic revenue 1600 60% 8,025 -0.67% 50.45%(RMB million) 1200 1465 1443 1416 50% 800 944 40%AFTK(million) 7,416.25 3.69% 400 30% 0 20%RFTK(million) 4,700.90 6.34% 2009 2010 2011 2012 Freight carried 货邮载运量(千吨) 货邮载运率 factor Freight load (million kg)Freight carried 1,416.48 -1.84% RAFTK & RRFTK(million kg) 1.83 1.71 1.7Freight load factor 63.39% 1.58pt 1.4 1.13 1.08 1.1RAFTK(RMB) 1.08 -4.2% 0.8 0.5RRFTK(RMB) 1.71 -6.6% 0.2 RAFTK RRFTK 2011 2012 12
    • Cargo – Transformation Measures Shareholding structure after integration Clear strategic positioning China Eastern Airlines Streamline shareholding structure and integrate freight resources 100% Fleet adjustment Eastern Logistics Develop new business and optimize logistic value chain Express Warehouse Aviation Aviation Logistics freight trading solutions transport 13
    • Expenses Scale and Structure Analysis YoY Items (RMB Million) 2012 changeAircraft fuel 29,871.5 2.2%Wages, salaries and benefits 10,059.0 16.1%Take‐off and landing charges 9,065.6 8.6%Depreciation and amortization 7,556.9 8.5%Office, administration and other 7,066.2 -6.6%expensesAircraft maintenance 4,432.7 0.6%Aircraft operating lease fees 4,438.2 7.5%Sales and marketing expenses 3,727.4 -0.3%Food and beverages 2,031.4 0.5%Others 4,495.8 6.5%Total operating expenses 82,744.8 4.4% 14
    • Cost Control ATK and Unit Cost of ATK Measures included: (RMB)(Million ton-km)  Full‐scale Budget management25000 6.00  Optimize route structure to 20000 18663 19721 5.00 reduce fuel consumption 17887 4.88  Reduce maintenance costs15000 4.25 4.20 4.00 12506 11642 3.84  Reduce controllable expenses10000 3.29 3.00 3.08  Reduce financial cost 2.64 2.68 2.685000 2.00 2.10 0 1.00 2008 2009 2010 2011 2012 ATK ATK单位成本 Unit Cost of Unit Cost of ATK ATK单位成本(扣除燃油) ATK (net of fuel) 15
    • Profit Change Analysis(RMB 100Million) 16
    • Summary of Balance Sheet and Cash Flow Statement Summary of 31 December YoY Summary of Cash Flow YoY balance sheet 2012 2012 change Statement (RMB million) change (RMB million)Current Assets 12,656.8 -7.7% Cash flows from 12,617.4 -7.4%Non‐current Assets 111,161.8 10.0% operating activitiesTotal Assets 123,818.6 7.9% Cash flows from -11,789.1 -21.1%Current Liabilities 48,623.0 12.1% investing activitiesNon‐current Liabilities 50,642.2 2.2% Cash flows from -2,174.3 -201.8%Total Liabilities 99,265.2 6.8% financing activitiesIncluding: Interest‐ 67,594.1 9.0% (Decrease)/ increase in bearing liabilities -1,346.0 -264.2% cash and cash equivalentsNet Assets 24,553.4 12.6%Net Assets attributable to shareholder 22,925.8 13.9% Cash and cash equivalents 2,511.7 -34.9% at 31 December 2012Debt Ratio 80.17% -0.83pt 17
    • Fleet Scale (End of 2012) Self–owned and operating No. Model Total financial leasing leasing Passenger aircraft Wide–body 1 A340–600 5 5 2 A330s 18 10 28 3 A300‐600R 7 7 4 B767 6 1 7 Narrow–body 5 A320s 137 41 178 6 B757‐200 5 5 10 7 B737s 70 74 144 8 CRJ–200 8 8 9 EMB–145LR 10 10 Total number of passenger aircraft 266 131 397 Freighter 10 MD‐11F 3 3 11 A300‐600R 3 3 12 B747 2 3 5 13 B757–200F 2 2 14 B777F 6 6 Total number of freighters 5 14 19 Total number of passenger aircraft and freighters 271 145 416 18
    • Future Fleet Plan 2013 2014 Model New delivery Disposal New delivery Disposal A320s 22 4 26 A330s 8 8 A340s 1 B737NG 26 5 24 B757 1 B777‐300ER 4 Regional aircraft 8 Freighter 5 1 Total 56 14 62 11 Note: The data shall be subject to adjustment based on the future market condition 19
    • Capital Expenditures (RMB Billion) Items 2012 2013E Expenditure on acquisition of aircraft 15.2 26.3 Other capital expenditures 3.4 4.4 Total 18.6 30.7 20
    • Outlook ‐ 2013 Overall Market  Domestic economy remain stable, and the second half year will be better than the first half  Continuous growth in demand for domestic passenger transport, rising consumption power and strong demand for outbound travel  Some signs of recovery in freight market  72–hours visa–free stay policy will benefit hub construction in Shanghai  Growth rate in Central and West China markets will be higher than that of East China markets  Normalized effect brought by high‐speed railway  Duration and depth of the impact on Japanese market caused by geopolitical factors is uncertain  European and US market: The impact of the political and economy factors is uncertain 21
    • Outlook ‐ Capacity strategy in 2013 Domestic market  Core hub at Shanghai  Regional hubs at Xi’an and Kunming, as well as Beijing Nanyuan airport  Increase the capacity of popular tourist routes International and regional markets  Launch new routes and increase the frequency of certain routes for peak seasons  Adjust the Japanese routes capacity according to market changes  exploring passenger sources of the Sixth Freedom of the Air  Seasonal increase in the Southeast Asia market  Further developing the Taiwan market 22
    • Q&AIR TeamTel : 86‐21‐2233 0928 86‐21‐2233 0922 86‐21‐2233 0925Email: ir@ceair.com