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ANA HoldingsAnnouncement

06/09/2014 22:37

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RNS Number : 7236N
ANA Holdings Inc
30 July 2014 
 
ANA HOLDINGS Financial Results for the First Quarter of FY2014 
 
TOKYO, July 30, 2014 - ANA HOLDINGS (hereinafter "ANA HD") today reports its
financial results for the first quarter of fiscal year 2014 (April 2014 -
March 2015). 
 
Highlights 
 
·    Revenue up 10% versus Q1 2013, to ¥386.8 billion, with sales growth in
each business segment 
 
·    Operating expenses up 8.2% due principally to increased fuel costs 
 
·    Sales growth supported by good demand for domestic and international air
travel and diversification into other airline related businesses, including
cargo 
 
·    Operating income of ¥0.3 billion, against loss in same period of FY2013
and recurring loss reduced total loss ¥2.5 billion 
 
·    Net income of ¥3.4 billion versus net loss of \6.6 billion in Q1 2013
after extraordinary profit of \10 billion following defined benefits pension
plan. 
 
·    ANA HD maintains its forecasts for the consolidated business outlook for
FY2014, as announced on April 30, 2014 
 
Overview 
 
·    The Japanese economy softened slightly during the period, in anticipation
of the consumption tax rise, but has since shown signs of gradual recovery,
led by increased capital investment and a partial recovery in individual
consumption. 
 
·    Japan's economy is expected to recover slowly as the beneficial effects
of the government's economic policies take hold. 
 
·    ANAHD continues to deliver on its strategy to expand its airline network,
diversify revenue streams into other airline related services and capitalize
on the growing Asian market. 
 
·    ANAHD continues to maximize profits by managing the cost base tightly and
by capitalizing on its holding company structure. 
 
·   ANA continues to make customer service enhancements, in-line with its
objective of becoming the world's leading airline group. The Airline is proud
to be selected as the best airline in the world in the following two segments;
1) Best Airport Services, and 2) Best Transpacific Airline at the latest
SKYTRAX awards, in addition to retaining its prestigious "5 Star" rating. 
 
Consolidated Financial Performance                                      
Unit:billion yen (rounded down) 
 
                                  1Q/FY2014  1Q/FY2013  Difference  % Comparison  
 Operating revenues               386.8      351.5      +35.2       +10.0         
 Operating expenses               386.4      357.1      +29.3       +8.2          
 Operating income/loss            0.3        -5.6       +5.9        -             
 Non-operating income/ loss net)  -2.8       -5.6       +2.7        -             
 Recurring profit/loss            -2.5       -11.2      +8.7        -             
 Extraordinary gains/ loss (net)  10.0       1.8        +8.2        +443.7        
 Net income/loss                  3.4        -6.6       +10.1       -             
 
 
Performance by business segment                              Unit:billion yen
(rounded down) 
 
                     1Q/FY2014        1Q/FY2013           Difference       
 Operating revenues  Segment results  Operating revenues  Segment results  Revenue  Segment results  
 Air Transportation  335.1            -1.1                305.5            -6.5     +29.6            +5.3  
 Airline Related     53.6             2.7                 45.7             1.2      +7.8             +1.5  
 Travel Services     36.7             0.7                 36.3             0.6      +0.3             +0.1  
 Trade and Retail    30.0             0.5                 26.4             0.7      +3.5             -0.2  
 Others              7.5              0.1                 7.0              0.1      +0.5             +0.0  
 
 
Air Transportation 
 
Domestic Passenger Services 
 
·    Revenues from domestic passenger services rose by ¥0.9 billion(up 0.7%
year-on-year) with year on year growth in passenger number, driven by solid
demand in business travel and a sharp increase in leisure travel. 
 
·      Unit price came under pressure as a result of increased domestic
competition. 
 
·    ANA continues to expand its domestic flight network in order to make
leisure travel more convenient for passengers. 
 
·      ANA introduced additional flights on the Haneda-Iwami/Tottori route. 
 
·     ANA is maintaining tight control of its demand/supply balance, using
different sized aircrafts on domestic flights in response to the level of
demand. 
 
·    ANA continues to implement and review the use of "Tabiwari"
discount-fares in order to attract customers. 
 
·    To improve customer convenience, ANA launched a free transit bus service
during the period to allow passengers connecting between international and
domestic flights at Haneda Airport for easier transit. 
 
·      Furthermore, ANA continues to build on its popular "Tastes of Japan"
project, which introduces specially selected Japanese food and drinks to its
services, providing passengers with greater choice and highlighting different
aspects of Japanese culture and cuisine. 
 
(Except for % comparison and passenger load factor, rounded down) 
 
 Domestic Air Transportation (consolidated)  1Q/FY2014  1Q/FY2013  Difference  % Comparison  
 Revenue (billion yen)                       148.3      147.3      +0.9        +0.7          
 Number of passengers (thousand)             9,970      9,690      +280        +2.9          
 Available seat km (million)                 14,839     14,909     -70         -0.5          
 Revenue passenger km (million)              8,788      8,495      +293        +3.5          
 Passenger load factor (%)                   59.2       57.0       +2.2        -             
 
 
International Passenger Services 
 
·   As a result of introducing new routes and increased flights, ANA was able
to capture the increasing demand for international business and leisure travel
during the period. Consequently, revenues from international passenger
services rose by ¥19.7 billion (up 22.1% year-on-year) and passenger numbers
also increased. 
 
·   ANA continues to strengthen its network, taking advantage of the expansion
of international slots at Haneda Airport from this March. New services were
launched to seven destinations from Haneda to London, Paris, Munich, Hanoi,
Jakarta, Manila and Vancouver. ANA also increased frequency between Haneda and
Frankfurt, Singapore and Bangkok. A new service from Narita to Dusseldorf was
started at the same time. 
 
·   Discount fares "Bizi-wari" and "Eco-wari" were used during the
long-holiday season in order to attract tourist. 
 
·    In terms of customer service enhancements, ANA has expanded capacity and
facilities at the "ANA SUITE LOUNGE" and "ANA LOUNGE" at Haneda Airport. 
 
(Except for % comparison and passenger load factor, rounded down) 
 
 International Air Transportation (consolidated)  1Q/FY2014  1Q/FY2013  Difference  % Comparison  
 Revenue (billion yen)                            109.2      89.5       +19.7       +22.1         
 Number of passengers (thousand)                  1,689      1,436      +253        +17.7         
 Available seat km (million)                      12,273     9,805      +2,468      +25.2         
 Revenue passenger km (million)                   8,471      6,963      +1,508      +21.7         
 Passenger load factor (%)                        69.0       71.0       -2.0        -             
 
 
Cargo Services 
 
·    Revenue from domestic cargo services rose by ¥0.5 billion (up 7.4%
year-on-year) and from international cargo services rose by ¥4.8 billion (up
19.6% year-on-year). 
 
·        Both businesses also experienced year on year growth in volumes. 
 
·    In domestic cargo services, growth was supported by the steady demand for
the transportation of fresh foods, mainly from Kyushu and Okinawa, and ANA
actively responded to the demand for door-to-door delivery. 
 
·    In international cargo services, ANA launched the
Okinawa-Singapore-Narita and Narita-Jakarta routes, using an additional cargo
plane, to expand its network. In addition to cargo departing from Japan, ANA
also transports cargo from Asia/China to North America, where demand is
steady. This tripartite transportation of cargo within Asia, leveraging the
Okinawa cargo hub, led to both volume and revenue growth compared to the same
period last year. 
 
(Except for % comparison and passenger load factor, figures are rounded down) 
 
 Cargo (consolidated)             1Q/FY2014              1Q/FY2013  Difference  % Comparison  
 Domestic                         Revenue (billion yen)  7.6        7.1         +0.5          +7.4   
 Freight carried (thousand tons)  110                    101        +8          +8.6          
 Ton km (million)                 111                    101        +10         +10.1         
 International                    Revenue (billion yen)  29.3       24.5        +4.8          +19.6  
 Freight carried (thousand tons)  212                    162        +49         +30.6         
 Ton km (million)                 891                    666        +225        +33.8         
 
 
Others 
 
·    Other revenue in the air transportation business was ¥38.2billion(up 9.7%
year-on-year), including revenue from FFP program, maintenance contracts and
Vanilla Air Inc. 
 
·    During the 1Q of FY2014, 198,000 passengers were carried on Vanilla Air,
with a load factor of 59.7%. 
 
·      Targeted advertising, marketing and special offers have been introduced
for Vanilla Air in order to build brand recognition and boost demand on the
new Amami- Oshima route launched in July. 
 
Airline Related , Travel Services, Tradeand Retail and Other 
 
·    The airline-related businesses achieved sales of ¥53.6billionduring the
1Q (up 17.3% year-on-year) and operating profitof ¥2.7 billion(up 24.4%
year-on-year). This was driven by an increase in contracts for ground support
operations at Haneda Airport. 
 
·    In the travel businesses, sales for the 1Q were ¥36.7billion(up 1.0
year-on-year) with operating profit of \0.7 billion (up 27.0% year-on-year).
International travel services saw popular demand for packaged tours from
Haneda Airport and benefited from overseas travelers visiting Japan. 
 
·    In tradeand retail, sales of ¥30.0 billionwere achieved (up 13.4%
year-on-year) with operating profitof ¥0.5billion(down 29.7% year-on-year).
Revenue grew as a result of steady sales in the retail segment and air
electric segment. 
 
·    In other businesses, the steady real estate business resulted in sales of
¥7.5 billion(up 7.3% year-on-year) and operating profit of ¥0.1 billion(up
45.8% year-on-year) during the 1Q. 
 
Outlook for FY 2014 (April 2014 - March 2015) 
 
·    Japan's economy is expected to recover slowly as the beneficial effects
of the government's economic policies take hold. However, ANA HD remains
exposed to any potential downward swing in overseas economies and other
factors. 
 
·    ANA HD will continue to execute its Mid-term Corporate Strategy for
FY2014-2016, in order to achieve its mid-term profit target, despite the
continued high price of fuel and persistent weakness in the Japanese yen. 
 
As a result, ANA HD is maintaining its forecasts for the consolidated business
outlook for FY2014, as announced on April 30, 2014: 
 
Consolidated Operating Results (Forecast)          unit: billion yen (rounded
down) 
 
                     Forecast for FY2014  FY2013   Difference  
 Operating revenues  1,700.0              1,601.0  +98.9       
 Operating income    85.0                 65.9     +19.0       
 Recurring profit    55.0                 42.9     +12.0       
 Net income          35.0                 18.8     +16.1       
 
 
Notes for Editors: 
 
- Aｌｌ financial information are prepared on the basis of accounting principles
generally accepted in Japan 
 
- Aｌｌfinancial information are not audited and provided for reference only 
 
- All percentages are rounded off; all other figures including monetary
figures are rounded down 
 
- All comparisons are year-on-year 
 
Please see the attached PDF for more details. 
 
This information is provided by RNS
The company news service from the London Stock Exchange