4Q17 FINANCIAL RESULTS - Korean Air · · 2018-04-27KOREAN AIR 4Q17 FINANCIAL RESULTS. 2 ......
Transcript of 4Q17 FINANCIAL RESULTS - Korean Air · · 2018-04-27KOREAN AIR 4Q17 FINANCIAL RESULTS. 2 ......
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KOREAN AIR
4Q17 FINANCIAL RESULTS
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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.
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End of 2016 End of 2017 Changes Rate
Current Assets 2,876 3,281 406 14.1%
Cash & Cash equivalent 746 576 -170 -22.8%
Non-Current Assets 19,830 20,282 451 2.3%
Aircraft related assets 13,728 14,308 580 4.2%
Total Assets 22,706 23,563 857 3.8%
Financial Liabilities 15,391 13,829 -1,563 -10.2%
Other Liabilities 5,662 6,062 401 7.1%
Total Liabilities 21,053 19,891 -1,162 -5.5%
Total Equity 1,653 3,672 2,019 122.1%
Debt Ratio 1,274% 542% -732%p
Financial Position (Non-consolidated)
(billion KRW)
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2016
4Q
2017
4QChanges 2016 2017 Changes
Sales 2,868 3,015 5.1% 11,503 11,803 2.6%
Operating Expense 2,693 2,784 3.4% 10,424 10,847 4.1%
Fuel Expense 593 708 19.4% 2,190 2,616 19.5%
Operating Profit 175 231 31.7% 1,079 956 -11.4%
Operating Profit Rate 6.1% 7.7% 1.6%p 9.4% 8.1% -1.3%p
Non-Operating Profit -1,046 404 -1,821 262
Foreign currency related
gain/loss, net-884 608 -296 1,013
Interest expense, net -103 -97 -373 -399
Income Before Tax -871 635Turn to
profit-742 1,218
Turn to
profit
Net Income -672 479Turn to
profit-591 908
Turn to
profit
Income Statement (Non-consolidated)
(billion KRW)
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4Q2017
(3,015 billion KRW)
Domestic
Passenger
4.0%
International
Passenger
53.9%
Cargo
26.4%
Others
10.3%
Aerospace
5.4%
4Q2016
(2,868 billion KRW)
Domestic
Passenger
4.1%
International
Passenger
51.6%
Cargo
24.7% Others
11.1%
Aerospace
8.5%
Revenue Composition (Non-consolidated)
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Annual Revenue Change (Non-consolidated)
Domestic
Passenger
4.3%
International
passenger
55.4%
Cargo
23.8%Others
10.3%
Aerospace
6.2%
0 1 2 3 4 5 6 7
Domestic
Passenger
International
Passenger
Cargo
Aerospace
Others
2017 2016
+365.0
-170.8
+25.9
2017 Total Revenue : 11.8 trillion KRWincreased +2.6% yoy (+299.9 billion KRW)
+13.3 (billion KRW)
+66.5
trillion KRW
Domestic
7%
Japan
11%China
12%
SEA
22%
Oceania
5%
Americas
26%
Europe
17%
4Q17
0
200
400
600
800
Domestic Japan China SEA Oceania Americas Europe
4Q16 4Q17
+3%
+3%
+20%
+8%
+6%
+0%+18%
Korea
57%
Japan
6%
China
7%
SEA
8%
Americas
16%
Europe
6%
4Q17
Passenger Revenue by Route Operations
[billion KRW]
[Revenue : Routes] [Revenue : Regional Sales]
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Passenger Traffic Growth Trend
2017 Passenger Traffic Growth (RPK) increased +2.6% yoy
69.8%
76.1%
77.0%
77.9%
76.7%
74.7%
76.9%
78.5%79.3%
66.0%
68.0%
70.0%
72.0%
74.0%
76.0%
78.0%
80.0%
50,000
55,000
60,000
65,000
70,000
75,000
80,000
2009 2010 2011 2012 2013 2014 2015 2016 2017
RPK(좌) 여객 L/F(우)million RPK
RPK(L) L/F(R)
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Traffic(RPK) Changes : SEA 10%↑, Europe 8%↑, Oceania 4%↑, Americas 4%↑, Japan 2%↓, China 4%↓
Number of Passengers Carried : 5%↑
(Korea Outbound 17%↑, Overseas 8%↓)
Worldwide air passenger traffic to increase +6.0% YoY - IATA
Opening of ICN Airport Terminal 2, PyeongChang Olympics, and JV partnership with Delta Airlines to increase overall demand in the passenger sector.
To constantly monitor China & Japan demand for capacity restoration as the sales recover from THAAD installation & North Korea related issues
Frequency Expansion : Incheon - Madrid / Istanbul / Aomori / Sapporo
Passenger Business Overview
4Q17 Business Summary
2018 Business Outlook & Plan
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4Q16 4Q17 YoY 4Q16 4Q17 YoY
Capacity (Mil ASK) 22,414 23,991 7.0% 908 875 -3.7%
Oct 7,673 8,118 5.8% 340 325 -4.6%
Nov 7,154 7,678 7.3% 286 275 -4.1%
Dec 7,587 8,196 8.0% 281 276 -2.1%
Traffic (Mil RPK) 17,525 18,418 5.1% 699 675 -3.3%
Oct 6,068 6,218 2.5% 272 254 -6.5%
Nov 5,457 5,897 8.1% 223 219 -1.7%
Dec 6,000 6,302 5.0% 203 202 -0.7%
L/F(%) 78.2% 76.8% -1.4%p 77.0% 77.2% 0.3%p
International Domestic
Passenger Traffic
Domestic
1%
Japan
5%China
10%SEA
14%Oceania
1%
Americas
42%
Europe
27%
4Q17
0
100
200
300
400
Domestic Japan China SEA Oceania Americas Europe
4Q16 4Q17
-9%+24%
+20%
+28%
+12%
+8%
+15%
Korea
25%
Japan
11%
China
26%
SEA
14%
Americas
12%
Europe
12%
4Q17
Cargo Revenue by Route Operations
[billion KRW]
[Revenue : Routes] [Revenue : Regional Sales]
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Cargo Traffic Growth Trend
2017 Cargo Traffic Growth (FTK) increased +5.3% yoy
74.7%
76.3%
75.4%
76.3%
77.0%
79.5%
77.9%
76.9%
78.5%
72.0%
73.0%
74.0%
75.0%
76.0%
77.0%
78.0%
79.0%
80.0%
7,000
7,500
8,000
8,500
9,000
9,500
10,000
2009 2010 2011 2012 2013 2014 2015 2016 2017
FTK(좌) 화물 L/F(우)million FTK
FPK(L) L/F(R)
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Traffic(FTK) Change : Oceania 32%↑, Japan 17%↑, Americas 3%↑,Europe 3%↑, SEA 2%↑, China 0%↑
Total Tonnage Carried : 5%↑ (Korea Outbound 2%↓, Overseas 7%↑)
The demand for air cargo in 2018 to increase +4.5% yoy (IATA)
Global economy to grow +3.9% (IMF) Positive indicator for air cargo - Reduction of U.S. corporate tax rate - Steady demand for IT devices delivered from the Asia-Pacific region
To secure profitability of cargo business by expanding air cargo transport product and flexible capacity management
Cargo Business Overview
4Q17 Business Summary
2018 Business Outlook & Plan
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4Q16 4Q17 YoY
Capacity (Mil AFTK) 2,750 2,854 3.8%
Oct 921 913 -0.8%
Nov 946 983 3.8%
Dec 883 958 8.5%
Traffic (Mil FTK) 2,205 2,280 3.4%
Oct 736 724 -1.6%
Nov 752 786 4.5%
Dec 718 771 7.4%
L/F (%) 80.2% 79.9% -0.3%p
Cargo (International + Domestic)
Cargo Traffic
15
Fuel
25%
Labor
17%
Depreciation
15%
Others
18%
Airport
related
11%
Maintenance
4%
In-flight
Service
4%
Commission
3%
Rentals
3%
4Q17
( 2,784 billion KRW)
4Q16
(2,693 billion KRW)
Fuel
22%
Labor
17%
Depreciation
16%
Others
19%
Airport
related
11%Maintenance
5%
In-flight
Service
4%
Commission
3%
Rentals
3%
Operating Expense Breakdown (Non-consolidated)
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Annual Operating Expense Change (Non-consolidated)
Fuel
24%
Labor
18%
Depreciation
15%
Otehrs
18%
Airport
related
11%Maintenance
4%
In-flight
Service
4%
Commission
3%
Rentals
3%
2017 Total Operating Expense : 10.8 trillion KRW, increased +4.1% yoy (+422.7 billion KRW)
0 1 2 3 4 5
Fuel
Labor
Depreciati
on
Rentals
Others
2017 2016
+426.1 (billion KRW)
+63.6
-64.6
+85.6
-88.0
trillionKRW
Type No. of Aircrafts Delivery in 2018(month)
A380 10
A330 29
B747-400 4
B747-8I 10
B777 38 ②③④⑤
B787-9 5 ⑥⑦⑨⑫
B737 35
CS300 2 ②③④⑤⑥⑦⑧⑩
Passenger Total 133 16
B747F 9
B747-8F 7
B777F 12
Cargo Total 28 0
Total 161 16
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Fleet Status
(As of Dec 31st, 2017)
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Balance
(billion)Ratio
Balance
(billion)Ratio
Balance
(billion)Ratio
USD 8.1 62.5% 7.2 55.6% -0.9 -11.1%
KRW 3,830 25.6% 4,150 30.0% 320 8.4%
Others
(EUR/JPY/HK
D in USD)
1.5 11.9% 1.9 14.4% 0.4 26.7%
SUM
(KRW)15,390 100% 13,830 100% -1,560 -10.1%
End of 2016 ChangesEnd of 2017
Borrowings (Non-consolidated)
(billion)
- FX Rate as of Dec. 31st, 2016 : USD1 / KRW1,208.5- FX Rate as of Dec. 31st, 2017 : USD1 / KRW1,071.4
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Thank you