2. Disclaimer
This presentation contains forward‐looking forecast and statements that reflect the
company’s current opinions on future events and its future financial performance.
These opinions were based on certain assumptions, which were determined by
various risk factors and subject to change. This presentation does not give the
assurance that the events predicted will actually occur, the forecast will materialize, or
the assumptions made were correct. The actual results may deviate materially from
the forecast.
This presentation is prepared under IFRS. Except for otherwise stated, 2012, 2011 and
2010 financial and operating figures include Shanghai Airlines Company Limited,
while 2009 and prior years do not. 2012 financial figures are VAT‐based, while 2011
and prior years are based on business tax.
3. 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
7. 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 operation
74% Impact reduces as route distance increases
72%
Impact weakened over time
Respond and seek cooperation actively
2012
5
8. 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
9. 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%, respectively
1500
1000 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 bureau
200 179.7 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
10. 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
11. 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
12. 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
13. 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
19. 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 activities
Total Assets 123,818.6 7.9%
Cash flows from
-11,789.1 -21.1%
Current Liabilities 48,623.0 12.1% investing activities
Non‐current Liabilities 50,642.2 2.2%
Cash flows from
-2,174.3 -201.8%
Total Liabilities 99,265.2 6.8% financing activities
Including: Interest‐
67,594.1 9.0% (Decrease)/ increase in
bearing liabilities -1,346.0 -264.2%
cash and cash equivalents
Net 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 2012
Debt Ratio 80.17% -0.83pt
17
20. 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
21. 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
22. 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
23. 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
24. 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