2014 Interim Results - ceair.com · Assets Structure and Cash Flow 10 28,503 18.6% 86,755 69.7%...
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2014 Interim Results International Financial Reporting Standards
Transcript of 2014 Interim Results - ceair.com · Assets Structure and Cash Flow 10 28,503 18.6% 86,755 69.7%...
2014 Interim Results
International Financial Reporting Standards
This presentation contains forward-looking forecast and outlook. These
opinions were based on certain assumptsions, which were subject to
change. The actual results may deviate materially from the forecast.
Region refers to Hong Kong, Macau and Taiwan.
Financial data included in this presentation is prepared under IFRS.
Unless otherwise specified, the unit for cost and income is RMB million.
Disclaimer
Industry Circumstances
1
• Market competition was more intensive
and the proportion of high-end travelers
reduced
• High-speed railway gradually networked
and diluted air travel demand
• Political unrest in some Southeast Asia
countries
• RMB depreciated against US dollars
Unfavorable Factors
• Global macro-economy gradually recovered
• Domestic economy maintained a relatively rapid growth
• Oil price declined at a certain extent in the first half of
the year
• Demand for leisure travel sustainably increased
• Japan market was stabilizing while Korea market was
promising
• Freight transport market showed recovery
Favorable Factors
Results Highlights
2
1H14 1H13 YoY Change
Total turnover 44,936 42,276
Of which: Transportation revenue 39,581 38,196
Operating costs 43,334 42,144
Operating profit 1,603 135
Gross profit margin 3.6% 0.3%
Net profit (attributable to equityholders of the Company)
12 622
EBITDAR 8,580 6,536
Cashflows from operating activities 5,262 3,780
ATK（million） 10,892 10,403
Passenger load factor 79.9% 79.3%
Number of aircraft 471 433
6.3%
3.6%
2.8%
1089%
3.3pt
-98.1%
31.3
%
39.2
%
4.7%
0.6pt
8.8%
Overall Market
3
Passenger
63.6%
Freight
36.4%
Overall Capacity
Passenger
90.9%
Freight
9.1%
Transportation Revenue
Structure
64.1% 63.9%
30.9%31.3%
5.0%4.8%
1H13 1H14
Transportation Revenue Proportion by area
Domestic International Regional
52.9% 53.5%
43.5% 42.8%
3.6% 3.7%
1H13 1H14
Capacity Proportion by area
Domestic International Regional
Passenger Market
4
Domestic
69.0%
International
27.3%
Regional
3.7%
Domestic
68.8%
International
26.6%
Regional
4.6%
5.5%
0.6pt
6.3%
1.2%
7.6%
0%
2%
4%
6%
8%
ASK PLF RPK RRPK* Revenue*
Changes of Main Passenger sector Indicators
0.60
0.65 0.65
0.60 0.61
0.45
0.51 0.510.48 0.49
50%
60%
70%
80%
90%
0.4
0.5
0.6
0.7
1H10 1H11 1H12 1H13 1H14
Passenger Unit Yield and Load factor Trend
Load Factor RRPK* RASK*
Capacity Breakdown
Revenue Breakdown
Note* ：Operational route subsidies included
Passenger Market
5
Hongqing
12.9%Pudong
8.2%
Beijing
7.5%Kunming
8.6%Xi‘an
6.0%
Others
56.8%
Domestic
Capacity
North America
24.4%
Australia
10.0%
Korea
7.0%Europe
15.4%
Japan
13.1%
Southeast Asia
30.1%
International
Capacity
Hong Kong
54.7%
Macau
6.7%
Taiwan
38.7%
Regional
Capacity
7.0%
0.7pt
8.0%
-0.2%
7.9%
-5%
0%
5%
10%
ASK PLF RPK RRPK* Revenue*
Changes of Main Indicators in Domestic Market
1.4%0.2pt
1.6%
6.3%
8.1%
0%
5%
10%
ASK PLF RPK RRPK* Revenue*
Changes of Main Indicators in International Market
8.8%
2.1pt
11.8%
-10.6%
0.03%
-18%
-8%
2%
12%
ASK PLF RPK RRPK* Revenue*
Changes of Main Indicators in regional Market
Note* ：Operational route subsidies included
Freight Market
6
Domestic
26.3%
International
70.0%
Regional
3.7%
Domestic
15.2%
International
78.8%
Regional
6.0%
3.4%
-2.1pt
-0.2%
2.5% 2.4%
-4%
-2%
0%
2%
4%
AFTK FLF RFTK RRFTK Revenue
Changes of Main Indicators in Cargo sector
1.981.86
1.77
1.54 1.58
1.201.12 1.09
0.92 0.91
50%
55%
60%
65%
0.5
1
1.5
2
1H10 1H11 1H12 1H13 1H14
Freight Unit Yield and Freight Load factor Trend
FLF RRFTK RAFTK
Capacity Breakdown
Revenue Breakdown
Revenue Change
7
42279
44936813
487
85
-47
1073
246
40000
41000
42000
43000
44000
45000
46000
1H13 Domestic
Passenger
International and
regional
Passenger
Cargo Others 1H14
Increase of Operational route subsidies
Major Costs
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Change of Cost Items 1H14 Proportion YoY change
Aircraft fuel 14,949 34.5%
Wages, salaries and benefits 6,885 15.9%
Take-off and landing charges 4,579 10.6%
Depreciation and Amortisation 4,448 10.3%
Indirect operating expenses 1,393 3.2%
Aircraft maintenance 2,080 4.8%
Aircraft operating lease fees 2,298 5.3%
Sales and marketing expenses 2,044 4.7%
Food and beverages 1,148 2.6%
Others 3,510 8.1%
Total operating expenses 43,334 100%
-0.2%
10.6%
0.0%
12.2%
-1.9%
-9.6%
6.9%
9.1%
5.4%
-1.6%
2.8%
Analysis on the Change in Operating Profit
9
135
16021338
30
-658
-171
-59
221 -149
-48581
1319
0
500
1000
1500
2000
2500
3000
1H13 Revenue Fuel Wage,salaries
and benefit
Sales and
Marketing
Food and
beverages
Aircraft
maintenance
Aircraft
operating
lease fees
Depreciation
and
Amortisation
Others 1H14
Increase of operational route subsidies
Assets Structure and Cash Flow
10
28,503
18.6%
86,755
69.7%
37,684
30.3%
124,439
81.4%
Assets and Liabilities Structure
Equity Total Liability Interest-bearing liability Other liability
20,045
23.3%
64,172
74.0%
2,538
2.9%
66,710
76.9%
Structure of Interest-bearing Liabilities
Liability in RMB Liability in Foreign currency
Liability in US Dollar Liability in other currency
1,9953,152
5,262
-8,304 4,168
31
-3000
-1000
1000
3000
5000
7000
Cash and cash
equivalents
before this period
Net cash inflow
from operating
activities
Net cash outflow
from investing
activities
Net cash inflow
from financing
activities
Fluence of
Exchange rate
Cash and cash
equivalents
at 30 June 2014
Changes of Cash Flow
Fleet Plan and Capital Expenditure Plan
Fleet PlanEnd of 2013
1H14
End of 1H14
Plan for 2H14 Plan for 2015 Plan for 2016
IN OUT IN OUT IN OUT IN OUT
Passenger Aircraft
451 23 -15 459 52 -27 71 -43 52 -26
A340-600 5 5 -1 -4
A330 Series 36 4 40 4 7
A300-600R 7 -3 4 -4
B777-300ER 0 4 5 5
B767 7 7 -1
A320 Series 201 9 -5 205 26 -11 25 -9 25 -6
B757-200 8 -1 7 -1 -4
B737 Series 169 10 -4 175 18 -3 34 -21 22 -15Regionalaircraft
18 -2 16 -6 -5 -5
Freighters 14 -2 12 -2 -1
Total 465 23 -17 471 52 -29 71 -44 52 -26
1H14 Plan for 2H14
Capital Expenditure 10,577 31,333
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Future Prospects
• Opportunities brought by the State Council’s request on
accelerating the development of transportation industry
• Domestic cross-area economic potential is gradually released
• Shanghai Free Trade Zone would provide convenience for trading
• Shanghai Disneyland is about to open
• Demand for private travel will maintain stable growth
• China United Airlines, a subsidiary of China Eastern Airlines, is
transforming into a low-cost carrier
• Geo-political instabilities existing in foreign countries
• Uncertainties of air fuel cost
• Uncertainties of the direction and range of RMB exchange rate
fluctuation
• Industry competition will become more intensive
• Influence by contingencies
Opportunities
Challenges
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