2012. 5. 3. 1
Disclaimer This presentation is for informational purposes only, contains preliminary financial and other information about Korean Air Lines Co., Ltd. and is subject to updating, revision, amendment and completion. This presentation does not and is not intended to constitute or contain any offer of securities for sale or a solicitation of an offer to purchase any securities of Korean Air Lines Co., Ltd. or any other company and neither this presentation nor anything contained herein shall form the basis of any contract or commitment. Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements or trend information that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the forward-looking statements in this presentation. In addition to statements which are forward-looking by reason of context, including without limitation, statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth opportunities, and risk adequate pricing, the words "may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, or continue", "potential, future, or further", and similar expressions are intended to identify forward-looking statements. Korean Air Lines Co., Ltd. assumes no obligation to update or revise any such statements or any other information contained herein to reflect events or circumstances that may arise after the date of this presentation. 2
Summary Statement of Financial Position (consolidated) 1Q 2012 4Q 2011 Amount (YOY) (Unit: billion) Ratio (YOY) Current Assets 3,745.4 3,350.1 395.3 11.8% Cash & Cash Equivalent 1,512.2 1,465.7 46.5 3.2% Non-Current Assets 19,077.6 19,038.2 39.4 0.2% Aircraft 11,250.4 11,186.7 63.7 0.6% Investment in associates 2,557.4 2,612.3-54.9-2.1% Total Assets 22,823.0 22,388.3 434.7 1.9% Financial Liabilities 15,479.4 15,159.1 320.3 2.1% Current 4,691.6 4,639.8 51.8 1.1% Non current 10,787.8 10,519.3 268.5 2.6% Other Liabilities 4,667.4 4,460.3 207.1 4.6% Total Liabilities 20,146.8 19,619.4 527.4 2.7% Total Shareholder s Equity 2,676.2 2,768.9-92.7-3.3% 3
Summary Income Statement (consolidated) 1Q 2012 1Q 2011 Amount (YOY) (Unit : billion) Ratio (YOY) Operating Revenue 2,998.3 2,821.4 176.9 6.3% Operating Expense 3,097.2 2,658.5 438.7 16.5% Operating Profit -98.9 162.9-261.8 Turn to loss Non-operating Income, net 69.9 205.8-135.9-66.0% Foreign currency related gain, net 146.7 204.6-57.9-28.3% Interest Expense, net 138.4 133.1 5.3 4.0% Profit share of associates using equity method 47.2 137.2-90.0-65.6% Income before tax -29.0 368.7-397.7 Turn to loss Net Income -67.2 270.9-338.1 Turn to loss 4
Summary Income Statement (non-consolidated) 1Q 2012 1Q 2011 Amount (YOY) (Unit : billion) Ratio (YOY) Operating Revenue 2,880.2 2,719.3 160.9 5.9% Operating Expense 2,994.9 2,574.1 420.8 16.3% Operating Profit -114.7 145.2-259.9 Turn to red Non operating Income,net 53.6 113.0-59.4-52.6% Foreign currency related gain, net 146.7 204.4-57.7-28.2% Interest Expense, net 120.2 116.2 4.0 3.4% Income before tax -61.1 258.2-319.3 Turn to red Net Income -81.3 189.5-270.8 Turn to red
Borrowings Currency As of March, 31 As of December, 31 Changes Balance (billion) Weight Balance (billion) Weight Amount (billion) Ratio USD $ 7.4 59.2% $ 7.3 60.5% $ 0.1 1.5% KRW 4,664 33.0% 4,700 33.9% -6-0.1% JPY 77.6 7.6% 49.3 5.3% 28.3 57.4% EUR 0.024 0.3% 0.028 0.3% -0.004-14.3% Total (USD) $ 12.4 100% $ 12.0 100% $ 0.4 3.3% Applied FX rate per US$ 1 : KRW 1,137.8, JPY 82.41, EUR 0.75 6
Revenue Composition 1Q Operating Revenue: KRW 2.88 trillion (+5.9% YOY) International Passenger 57.7% Cargo 27.1% Others 6.2% (Inflight Sales etc.) Aerospace 3.8% Catering 0.7% Hotel/Limousine 0.4% Domestic Passenger 4.1% 7
Passenger Traffic Description International Passenger Domestic Passenger 1Q 2012 1Q 2011 Change(%) 1Q 2012 1Q 2011 Change(%) Supply (Mil ASK) 21,114 18,752 12.6% 986 973 1.4% January 7,521 6,567 14.5% 332 336-1.2% February 6,630 5,855 13.2% 304 298 1.9% March 6,962 6,330 10.0% 351 339 3.5% Traffic (Mil RPK) 15,989 14,575 9.7% 589 572 3.0% January 5,918 5,325 11.1% 197 193 2.0% February 5,028 4,507 11.6% 193 187 3.2% March 5,042 4,743 6.3% 200 192 3.9% L/F(%) 75.7% 77.7% -2%p 59.8% 58.8% +1%p Yield (US Cent) 9.2 8.8 8.0% 17.8 16.7 6.6% 8
Passenger Revenue Breakdown By Route Operation [Unit : billion] 600 500 400 300 200 100 0 Domestic Japan China SEA Oceania Americas Europe 2012 1Q 2011 1Q Americas 31% Americas 32% Oceania 6% SEA 19% 2012 1Q China 10% Japan 15% Europe 12% Domestic 7% Oceania 5% SEA 17% 2011 1Q China 10% Japan 16% Europe 13% Domestic 7% 9
Passenger Revenue Breakdown By Regional Sales [ Unit : billion] 800 2012 1Q 2011 1Q 600 400 200 0 Korea Japan China SEA Americas Europe Europe 6% Americas Europe 6% Americas 19% SEA 7% 2012 1Q Korea 44% 17% SEA 7% 2012 1Q Korea 48% China 7% Japan China 6% Japan 17% 16% 10
Passenger Business Overview 1Q Business Summary RPK increase in all routes(yoy): Oceania 23%, SEA 18%, China 14%, Japan 8%, America, Europe 5% Korea outbound traffic maintain last year s level, overseas outbound increased 16%. (Korea inbound: +16%, Transit: +16%) 2012 2Q Outlook/ Business Plan As global economy recovers, Korea outbound is expected to show gradual increase. Capacity control and fleet redeployment to achieve higher operating efficiency so as to stabilize the business against the high oil prices. New route : ICN- Gatwick(April), ICN- Nairobi(June) Frequency Increase : ICN- Ulaanbaatar/Shenyang/Danang/Tianjin/ Xian/Vancouver, Busan-Beijing 11
Cargo Traffic Description Cargo (Domestic + International) 1Q 2012 1Q 2011 Change(YOY) Supply (Mil AFTK) 2,731 3,017-9.5% January 862 986-12.6% February 912 922-1.0% March 957 1,109-13.7% Traffic (Mil FTK) 2,059 2,277-9.6% January 600 718-16.4% February 702 687 2.4% March 757 872-13.2% L/F(%) 75.4% 75.5% +0.1%p Yield (US Cent) 30.8 30.6 0.7% 12
Cargo Revenue Breakdown By Route Operation [ Unit : billion] 300 2012 1Q 2011 1Q 200 100 0 Domestic Japan China SEA Oceania Americas Europe Americas 36% 2012 1Q Domestic 1% Oceania 1% Japan 6% China 11% Americas 40% 2011 1Q Domestic 1% Oceania 1% Japan 6% China 10% Europe 31% SEA 14% Europe 28% SEA 14% 13
Cargo Revenue Breakdown by Regional Sales [ Unit : billion] 300 2012 1Q 2011 1Q 200 100 0 Korea Japan China SEA Americas Europe Europe Europe Americas 11% 12% Korea 29% 11% Americas 11% Korea 31% SEA 15% 2012 1Q Japan SEA 14% 2011 1Q Japan China 20% 13% China 21% 12% 14
Cargo Business Overview 1Q Business Summary Korea outbound decreased 12%, transit traffic decreased 9% (YOY) Japan( 5% ), China (9% ), SEA( 7% ), Americas(16% ), Europe (7% ) outbound traffic decreased Chinese airline s sharp increase in capacity leads to rising competition in China market. No. of wide-body freighter: 93(Jan 2010) 109(April 2012) Auto parts, smartphones, semiconductors were the main items carried 2012 2Q Outlook/Business Plan Cargo traffic is expected to benefit from KR-US FTA and London Olympic games. Route operation plan to strengthen profitability Maintain the network and develop new markets to pursue sustainable growth. 15
Expense Breakdown 영업수익 1Q 2012 x 억원 (KRW 2,995 billion) 1Q 2011 (KRW 2,574 billion) Inflight service 3.3% Sales comission 3.0% Maintenance 3.1% Airport related 10.2% Others 12.6% Fuel 40.4% Sales comission 4.6% Others Maintenance 12.9% 1.8% Inflight service 3.4% Airport related 9.9% Fuel 38.7% rental 2.0% Depreciation Amortization 11.9% Labor 13.5% Rental 2.9% Depreciation Amortization 11.1% Labor 14.8% 16
Key Expenses (Unit: KRW billion) 1Q 2012 1Q 2011 Change Jet Fuel 1,210.3 995.0 21.6% Consumed Amount (Mil bbl.) 79.4 77.2 2.8% Average Unit Price (US$/bbl.) 13.3 11.6 14.7% Labor 405.8 380.4 6.7% A/C Rental 40.7 58.1-29.9% no. of A/C* (as end of 1Q) 24 24 0% A/C Depreciation 330.2 262.4 25.8% no. of A/C**(as end of 1Q) 130 113 15.0% * no. includes 6 subleased A/Cs to JIN Air ** no. includes 3 rented out A/Cs. 17
Fleet Status (as of March 31, 2012) Fleet Type Current Status To be delivered ( 12) To be Phased out ( 12) A380 5 1 A330 23 A300 7 7 B747 16 3 B777 31 1 B737 37 5 2 Passenger total 119 7 12 B747F 25 1 1 B777F 1 1 Cargo total 26 2 1 Total 145 9 13 Above chart does not include A/C rented out to Jin Air and etc. 18
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