Q2 Key facts Asia and business travel growing New Singapore - - PDF document

▶
q2 key facts
SMART_READER_LITE
LIVE PREVIEW

Q2 Key facts Asia and business travel growing New Singapore - - PDF document

May 23, 2023 352 likes •492 views

10.8.2011 I nterim Report August 5 , 2 0 1 1 Finnairs Q2 2 0 1 1 Q2 Key facts Asia and business travel growing New Singapore route made promising start Finnair rose to become one of top three airlines in Asian traffic

slide-1
SLIDE 1

10.8.2011 1

I nterim Report August 5 , 2 0 1 1 Finnair’s Q2 2 0 1 1

Q2 Key facts

  • Asia and business travel growing
  • New Singapore route made promising start
  • Finnair rose to become one of top three airlines in Asian traffic
  • FCA (Finncomm) acquisition, and establishment of Flybe Nordic
  • Unit costs (CASK) -7.6% , excluding fuel -11.6%
  • Net cash flow EUR 90.1 million
  • Increasing competition in domestic market and European traffic

consumed unit revenue

  • Weak Japan and the high price of oil continued to adversely affect

financial performance

  • Operational result was loss of EUR 13.8 million
slide-2
SLIDE 2

10.8.2011 2

Finnair restructuring

Target: perm anent 1 4 0 m illion euro cut in cost base by the year 2 0 1 4

  • We are targeting 140 million euro annual cut in cost base by

the year 2014

  • Planning of these savings and discussions with the personnel

group representatives are initiated immediately

  • Performance improvement of this magnitude will require

new thinking and a significant change in ways of working and operational structures

  • We will explore possibilities for efficiency gains throughout

the organization and analyze structural solutions with respect to flight operations, particularly in European traffic

  • The aim is to implement part of the cost savings during the

current year

slide-3
SLIDE 3

10.8.2011 3

Profitability to be driven by Asian grow th

  • Finnair aims to double its turnover in Asian traffic by 2020
  • In addition to traffic growth, we aim increase turnover from

ancillary sales delivering added value to customers

  • We are continually exploring new strategic opportunities in

Asian traffic

  • Partnerships are one of the cornerstones of our strategy; we

are actively seeking new partners in all areas

The New Finnair

Service identity renew al

Continually improving travel experience

Cost-com petitiveness

EUR 140 million permanent cut in cost level

Focus on core business Partnership strategy Structural solutions

Catering analysis, Technical Services, Airline Business, Organisation

Profitable grow th

Focus on Asian traffic: business travel and tailored ancillary services

Num ber one in the Nordic countries

Am ong the top three in Asian transit traffic Doubling of Asian turnover by 2 0 2 0

slide-4
SLIDE 4

10.8.2011 4

Finnair is a quality airline

  • Finnair is a leading European airline in the level of

customer service:

– Selected as the best North European airline – Customer satisfaction still rising

  • Our operational quality is top class
  • One of the most innovative airlines
  • Making customer service a competitive asset:
  • ur goal is to be the airline of choice in

Asia-Europe traffic

  • We will develop our service culture and sharpen
  • ur service identity

Results for the second quarter

slide-5
SLIDE 5

10.8.2011 5

Traffic Region Developm ent Q2 2 0 1 1 vs. Q2 2 0 1 0

  • Asia traffic share 53% of total ASK

ASK 2 7 .0 % RPK 3 2 .3 % PLF% 3 .3 % -p Traffic revenue 1 6 .4 %

North Atlantic

ASK 2 4 .3 % RPK 2 7 .9 % PLF% 2 .0 % -p Traffic revenue 1 8 .0 %

Europe

ASK 2 7 .8 % RPK 2 1 .4 % PLF%

  • 3 ,9 % -p

Traffic revenue 2 8 .0 %

Asia

ASK

  • 2 1 .7 %

RPK

  • 2 1 .9 %

PLF%

  • 0 .3 % -p

Traffic revenue

  • 2 0 .5 %

Leisure traffic

ASK 4 1 .7 % RPK 2 9 .1 % PLF%

  • 5 .1 % -p

Traffic revenue 2 3 .7 %

Dom estic

ASK 2 1 .0 % RPK 1 8 .0 % PLF%

  • 1 .8 % -p

Traffic revenue 1 8 .2 %

Total

ATK 4 8 .8 % RTK 3 9 .7 % CLF%

  • 4 .2 % -p

Traffic revenue 5 4 .8 %

Cargo

Key Figures

Q2 2011 Q2 2010 Change % H1 2011 H1 2010 Change % Turnover and result Turnover EUR million 539,4 473,5 13,9 1 073,10 955 12,4 Operational result, EBIT EUR million

  • 13,8
  • 13,6

1,5

  • 56,9
  • 39,9

42,6 Operational result, % turnover %

  • 2,6
  • 2,9
  • 5,3
  • 4,2

Operating result, EBIT EUR million

  • 25,2
  • 33,3
  • 24,3
  • 68,3
  • 59,2

15,4 EBITDAR EUR million 33,8 32,5 4 37,4 52,5

  • 28,8

Result before taxes EUR million

  • 30,2
  • 37,9
  • 20,3
  • 76,4
  • 67,3

13,5 Net result EUR million

  • 23
  • 27,8
  • 17,3
  • 56,8
  • 49,5

14,7 Balance sheet and cash flow Equity ratio % 32,9 32,2 Gearing % 24 36,1 Adjusted gearing % 78,7 98,1 Capital expenditure, CAPEX EUR million 30,9 74,8

  • 58,7

61,8 143,5

  • 56,9

Return on capital employed, ROCE 12months rolling %

  • 3,4
  • 7,8

Return on equity, ROE , %

  • 7,9
  • 13,7

12 mohths rolling Net cash flow from operating activities EUR million 90.1 19,5 52,1 1,6

slide-6
SLIDE 6

10.8.2011 6

Travel Services

  • The significant overcapacity in Finland’s package tour market

attributed to a loss of operational result of 5.6 Mill Eur

  • Aurinkomatkat turnover grew in the second quarter 2011 by 8% ,

while passenger numbers grew by 17% compared with the previous year

  • Integration of the leisure operations of Area and SMT into

Aurinkomatkat was completed in Q2

  • Aurinkomatkat renewed its visual identity and the name was

abbreviated to the form ‘Aurinko’ in its new logo

  • Business travel grew in Q2 and Finnair’s business travel agencies

increased their market share; Travel agencies’ productivity improved and the result turned clearly into profit

slide-7
SLIDE 7

10.8.2011 7

RASK & CASK Developm ent Airline Business, Q2 2011 vs. Q2 2010

RASK, tuotto per ASK CASK, kustannus per ASK CASK ilman pa. Henkilöstökustannus Maapalvelu- ja catering-kulut Poistot ja leasing-maksut Muut kulut Polttoaine Liikennöimismaksut +5,2

  • 6,1
  • 12,0

Change % Q2 2011 vs. Q2 2010

Change %

c ASK

  • 11,6
  • 7,6
  • 4,3
  • 9,6
  • 17,9
  • 10,8

RASK, revenue per ASK CASK, cost per ASK CASK excl. Fuel Staff costs Ground handling & catering exp. Depreciation & lease expenses Other expenses Fuel Traffic charges

Developm ent of operating expenses, Finnair Group, Q2 2011 vs. Q2 2010

Toiminnalliset kulut + 61,4 Toiminnalliset kulut ilman pa. +32,8 Polttoaine +28,6 Liikennöimismaksut + 0,0 Valmismatkatuotannon kulut + 4,6 Poistot ja leasing-maksut + 1,5 Muut kulut * +4,3 Henkilöstökulut + 4,5 Maapalvelu- ja catering- kulut + 7,0 +12,4 + 8,4 +4,2 +16,8 +20,6 + 7,9

Change % Q2 2011 vs. Q2 2010

Change %

  • Mill. EUR

+3,3 +27,7 Operating expenses Operating expenses excl. Fuel Fuel Traffic charges Expenses for tour operators Depreciation & lease expenses Other expenses Staff costs Ground handling & catering exp.

slide-8
SLIDE 8

10.8.2011 8

Cost Structure Q2 2 0 1 1

Fuel 2 4 % Personnel 20 % Other Costs 11 % Traffic Charges 9 % Depreciation and Leasing 5 % Groundhandling and Cat er ing 9% Tour operator costs 5 % Other Rent s 5 % Maint enance 5% Sales and M arketing 4 %

Jet fuel spot + 4 7 % y-o-y

slide-9
SLIDE 9

10.8.2011 9

Change in fuel costs Q2 2 0 1 1

* Includes EUR 4 million hedging loss * * Includes EUR 24 million hedging profit

Incl. Hedging cost of -4 MEUR Incl. Hedging profit of 24 MEUR

131** 103* 49

  • 28
  • 16

23 50 100 150 Q2/2010 Volume Price Currency Hedging Devitation Q2/2011 MEUR

Rolling Hedging Policy

0% 20% 40% 60% 80% 100% hedge ratio upper lower 0% 20% 40% 60% 80% 100% hedge ratio upper lower

slide-10
SLIDE 10

10.8.2011 10

Strong balance sheet

Equity ratio and adjusted gearing

%

20 40 60 80 100 120 2006 2007 2008 2009 2010 Q1 2011 Q2 2011 Omavaraisuusaste Oikaistu nettovelkaantumisaste, Adjusted Gearing

Equity Ratio Adjusted Gearing

Outlook for rest of 2 0 1 1

  • Result for second half of year expected to return to profit, in

line with earlier profit guidance

  • We aim to implement part of the cost savings target during

the current year

  • We expect positive result not to be achieved in 2011, due to

the heavy losses in first half of the year

  • Turnover expected to grow by more than 10% in the full

year

slide-11
SLIDE 11

10.8.2011 11

Thank you

slide-12
SLIDE 12

10.8.2011 12

RASK & CASK Developm ent Airline Business, 1H11 vs. 1H11 2010

RASK, tuotto per ASK CASK, kustannus per ASK CASK ilman pa. Henkilöstökustannus Maapalvelu- ja catering-kulut Poistot ja leasing-maksut Muut kulut Polttoaine Liikennöimismaksut +6,4

  • 7,0
  • 9,4

Change % 1H11 vs. 1H10

Change %

c ASK

  • 7,1
  • 3,8
  • 2,7
  • 6,0
  • 9,9
  • 3,7

RASK, revenue per ASK CASK, cost per ASK CASK excl. Fuel Staff costs Ground handling & catering exp. Depreciation & lease expenses Other expenses Fuel Traffic charges

Traffic Region Developm ent H1 2 0 1 1 vs. H1 2 0 1 0

  • Asia traffic share 53% of total ASK

ASK 2 1 .6 % RPK 2 2 .6 % PLF% 0 .3 % -p Traffic revenue 1 6 .8 %

North Atlantic

ASK 1 7 .3 % RPK

  • 1 4 .0 %

PLF%

  • 1 .8 % -p

Traffic revenue 9 .9 %

Europe

ASK 2 4 .0 % RPK 1 2 .7 % PLF%

  • 1 0 ,7 % -p

Traffic revenue 2 5 .8 %

Asia

ASK

  • 9 .4 %

RPK

  • 9 .6 %

PLF%

  • 0 .1 % -p

Traffic revenue

  • 9 .0 %

Leisure traffic

ASK 2 8 .7 % RPK 1 4 .4 % PLF%

  • 1 .8 % -p

Traffic revenue 1 5 .5 %

Dom estic

ASK 1 6 .3 % RPK 9 .1 % PLF%

  • 4 .8 % -p

Traffic revenue 1 3 .8 %

Total

ATK 2 8 0 % RTK 2 5 5 % CLF%

  • 4 .4 % -p

Traffic revenue 2 5 1 %

Cargo