2014 annual results - static-cdn.ceair.comstatic-cdn.ceair.com/upload/2015/3/29212220885.pdf ·...
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二零一四年全年业绩
International会计准则
2014 Annual Results
Under IFRS
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Disclaimer
Financial data included in this presentation is prepared under IFRS.
Unless otherwise specified, the unit for cost and income is RMB million
“Regions” or “Regional” in this presentation means Hong Kong,
Macau and Taiwan.
Transportation revenue in this presentation includes Co-operational
routes income.
This presentation contains forward-looking forecast and outlook. These
opinions were based on certain assumptions, which were subject to
change. The actual results may deviate materially from the forecast.
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Domestic Industry Circumstances
Favorable Factors
Relatively fast domestic economic growth
Industry regulatory policies tend to be more
market-oriented
International oil prices declined
Private travel demand continuously grew
Distribution rate lowered down
Unfavorable Factors
Uneven growth of the global economy
Political instability in some Southeast Asia
countries
Sluggish business travel demand
Slight depreciation in RMB against USD
1
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Results Overview
Data Overview 2014 2013 YoY
Total turnover 93,870 90,970 3.2%
Operating cost 87,812 89,394 -1.8%
Operating profit 6,058 1,576 284.3%
Gross profit margin 6.5% 1.7% 4.8pt
EBITDAR 20,507 15,152 35.3%
EBIT 6,186 1,641 276.9%
Net profit(attributable to shareholders of the Company)
3,410 2,373 43.7%
Cash Flows from operating activities 12,296 10,806 13.8%
ATK (Million) 22,539 21,715 3.8%
Passenger Load Factor 79.55% 79.21% 0.34pt
2
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Overall Market
Passenger,
64.1%
Freight,
35.9%
Capacity Breakdown by business
Passenger,
91.3%
Freight,
8.7%
Revenue breakdown by Business
3
3.8%
-0.1pt
3.7%
2.0%
5.7%
-2%
0%
2%
4%
6%
ATK LF RTK RRTK Revenue
Change in Major Transportation Indicators
11,573
53.3%
12,026
53.4%
9,377
43.2%
9,704
43.1%
765
3.5%
809
3.5%
0
5,000
10,000
15,000
20,000
25,000
2013 2014
ATK(M)Capacity Proportion by Market
Regional
International
Domestic
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Passenger Business
Domestic
68.7%
International
27.7%
Regional
3.6%
Capacity
Breakdown
Domestic,
69.0%
International,
26.6%
Regional,
4.4%
Revenue
Breakdown
4
5.6%
0.3pt
6.1%
0.5%
6.6%
ASK PLF RPK RRPK Revenue
Changes of Passenger business Indicators
0.63
0.680.65
0.61 0.61
0.49
0.540.52
0.48 0.48
70%
75%
80%
85%
0.4
0.5
0.6
0.7
2010 2011 2012 2013 2014
Trend of Unit Revenue and load factor
PLF RRPK RASK
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Domestic Passenger Business
Increased capacity in core markets
Optimized route network
Better match of market and aircraft
Overall demand in the domestic market was stable
Growth in private travel demand was relatively fast
Demand from high-end traveler was sluggish
Flight capacity in peak season was lower than expected
Hongqiao,
12.1%Pudong,
8.1%
Beijing,
11.0%
Kunming,
7.6%
Xi'an, 5.8%
Others,
55.3%
Capacity
Breakdown
5
5.7%
0.6pt
6.5%
-0.4%
6.1%
ASK PLF RPK RRPK Revenue
Changes of Main Domestic Passenger Business
Indicators
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International Passenger Business
Expanded international route network and increased the
frequency of trunk routes
Optimized capacity Allocation
Enhanced joint operation and code-sharing cooperation
Southeast Asia,
28.6%
North America,
25.5%
Europe,
15.8%
Japan,
13.3%
Australia,
9.3%
Korea,
7.6%
Capacity
Breakdown
Overall performance of international market was steady with an upward
trend
Europe,US and Korea markets were favorable
Demand of Japan Market was favorable, while the yield slightly declined
Southeast Asia market declined
Performance of premium classes was improved
6
5.4%
-0.5pt
4.7%4.2%
9.1%
ASK PLF RPK RRPK R
Changes of Main International Passenger
Business Indicators
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Regional Passenger Business
Strengthen Shanghai-Hong Kong premium route
Increase capacity of Taiwan and Macau market
Demand growth of Hong Kong market decreased
Competition in Taiwan market intensified
Macau market was favorable
Hong Kong,
54.5%
Taiwan,
38.1%
Macau,
7.4%
Capacity
Breakdown
7
6.0%
1.3pt
7.8%
-6.9%
0.4%
ASK PLF RPK RRPK Revenue
Changes of Main Passenger Business Indicators for
Regional Market
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Network and Market Share
Urumqi
London
Paris
Frankfurt
Los AngelesNew YorkSan FranciscoHawaii
MelbourneSydneyAuckland
Rome
VancouverToronto
Beijing
Taiyuan
Xi'an
Qingdao
Nanjing
Wuhan
HangzhouNingbo
Shenzhen
Nanchang
GuangzhouKunming
Chengdu
Hefei
Moscow
Several destinations in Southeast Asia
Taipei
Shanghai
Top 10 Markets inTerms of Total Flight
Share of CEA
Shanghai Market 41.8 %
Beijing Market 19.3 %
Guangzhou 10.5 %
Shenzhen 8.9 %
Kunming 41.3 %
Chengdu 13.2 %
Xi'an 30.7 %
Chongqing 9.8 %
Hangzhou 9.8 %
Xiamen 10.5 %
“Connecting each other”:
Southeast Asia,South Asia,West Asia
Japan Market
Korea Market
Major HubsTransit
ConnectionOpportunity
YoYChange
Proportion of Transit
Passenger
Pudong 2808 10.2% 22.0%
Xi'an 547 19.7% 2.3%
Kunming 1141 6.1% 8.8%
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Optimization of Fleet
Introduced new B777-300 aircraft
Focused on 4 major aircraft models
Better match aircraft type, market and routes
Reduced operating costs and enhanced operational efficiency
FleetEnd of 2013
2014 End of 2014In Out
Passenger Aircraft
451 75 -41 485
B777-300ER 4 4
A330 Series 36 8 44
B737 Series 169 28 -7 190
A320 Series 201 35 -14 222
A340-600 5 -1 4
B767 7 -1 6
B757-200 8 -3 5
A300-600R 7 -7
Regional Aircraft
18 -8 10
Freighters 14 -2 12
Total 465 75 -43 497
9
B777-300
A330 Series
B737 SeriesA320 Series
Long-haul routes to North America
To Europe, Australia and for trunk routes
Medium-and short-haul routes
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Brands and Services Experience
In-flight Facilities Sky Kitchen
Mobile ServicesEntertainment System VIP Lounges
Premium Class
Self-service check-in
10
New LOGO
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Marketing and Products
11
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Cargo Business
Domestic,
25.9%
International,
70.5%
Regional,
3.6%
Capacity
breakdown
Domestic,
15.4%
International,
78.6%
Regional,
6.0%
Revenues
Breakdown
12
0.7%
-1.1pt -1.1% -1.3%
-2.4%-3%
-1%
1%
AFTK FLF RFTK RRFTK Revenue
Changes of Main Cargo Business Indicator
1.951.83
1.711.57 1.55
1.181.13 1.08
0.95 0.92
50%
55%
60%
65%
0.5
1
1.5
2
2010 2011 2012 2013 2014
Trend of Unit Revenue and load factor
FLF RRFTK RAFTK
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Transformation Development
Transform from a traditional air passenger carrier to a modern
integrated air service provider
Explore low cost operating pattern on China United Airlines
Established e-commerce company to create CEA eco-system
To transform supportive assets into operational assets
Transform from a traditional air cargo carrier to a modern
integrated air logistics service provider
To explore new business mode and provide high-end logistics solutions
13
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Revenue Change
14
90,970
93,870
3,062
1,741 -181 -1,722
2013 Domestic
Passenger
International
and regional
Passenger
Cargo Others( Exclude
Co-operational
routes income)
2014
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Major Costs
Cost Items 2014 2013 YoY Prop
Aircraft fuel 30,238 30,681 -1.4% 34.4%
Wages, salaries and benefits 11,270 13,454 -16.2% 12.8%
Take-off and landing charges 9,440 9,190 2.7% 10.8%
Depreciation and amortization 9,183 8,226 11.6% 10.5%
Indirect operation expenses 4,950 4,623 7.1% 5.6%
Aircraft maintenance expenses 4,453 4,690 -5.1% 5.1%
Aircraft operating lease rentals 4,502 4,605 -2.2% 5.1%
Sales and marketing expenses 4,120 4,139 -0.5% 4.7%
Food and beverages 2,364 2,268 4.2% 2.7%
Others 7,292 7,518 -3.0% 8.3%
Total operating expenses 87,812 89,394 -1.8% 100%
15
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Operating Profit
16
1,576
6,058 2,900
443 -250 2,184
19
-96
237
103
-957
-101
2013 Increased
Revenue
Fuel Take off
and
Landing Charges
Wage,salaries
and benefit
Sales and
Marketing
Food and
beverages
Aircraft
maintenance
Aircraft
operating
lease fees
Depreciation
and
Amortisation
Others 2014
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Assets Structure and Cash Flow
31,772
19.2%
97,884
59.0%
36,173
21.8%
134,057
80.8%
Assets and Liabilities Structure
Equity Total Liability Interest-bearing liability Other liability
1,995 1,355
12,296
-24,033
11,112
-15
-10000
-5000
0
5000
10000
15000
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 31Dec 2014
Change of Cash Flow
17
16,205
16.6%
79,421
81%
2,258
2.3%
81,679
83.4%
Structure of Interest-bearing Liabilities
Liability in RMB
Liability in Foreign currency
Liability in US Dollar
Liability in other currency
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Future Prospects
• Economy restructures and maintains medium-to-high speed growth
• Reform on SOE and administrative simplification motivate industry
development
• Demand for private travel maintains stable growth
• Increase in demand due to relaxing visa policies
• “Belt and Road” and Free-trade zones release the potential of regional
economic development in China
• Shanghai Disneyland is about to open
• Emerging advantages on efficiency and cost from fleet optimization
• Geo-political instabilities existing in peripheral countries
• Uncertainties of crude oil price
• Uncertainties of the range and direction of RMB exchange rate fluctuation
• Higher expectations for US Federal raise US interest rate
Opportunities
Challenges
18
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Fleet Plan and Capex
19
Fleet Plan End of 20142015 Plan 2016 Plan
IN OUT IN OUT
Passenger Aircraft 485 80 -43 70 -26
B777-300ER 4 5 5
A330 Series 44 7
B737 Series 190 39 -18 35 -15
A320 Series 222 29 -11 30 -6
A340-600 4 -4
B767 6
B757-200 5 -5
Regional Aircraft 10 -5 -5
Freighters 12 -3
Fleet Plan 497 80 -46 70 -26
Capex(Billion) 25.9 32.6
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ADR Transaction Information
DR Symbol CEA
CUSIP 16937R104
Ratio 1 ADR : 50 ORD
Underlying SEDOL 6171375
Underlying ISIN CNE1000002K5
Depositary BNY Mellon
FOR MORE INFORMATION, PLEASE CALL:
LONDONMark [email protected] Telephone +44 207 163 7407
NEW YORKKristen [email protected] +1 212 815 2213
Angelo [email protected] Telephone +1 212 815 2893
HONG KONGHerston [email protected] Telephone +852 2840 9868
USEFUL INFORMATION:
Books Open/Closed: www.adrbnymellon.com/corp_actions_bc.jsp
Corporate Actions: www.adrbnymellon.com/corp_actions.jsp
DR Directory:www.adrbnymellon.com/dr_directory.jsp
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Q&A
IR Team
Tel : +86 21 2233 0928
+86 21 2233 0922
Email: [email protected] Official CEA APP CEA WeiboWeChat