Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
Finnair2015 kolmannenvuosineljänneksen tulos
30.10.2015Toimitusjohtaja Pekka VauramoTalousjohtaja Pekka Vähähyyppä
1 Finnair Q3 2015 Result, 30 October 2015
Q3 Result 201530 October 2015
Highlights of the quarter• Excellent Q3 result:
– Record result in Airline Business– Strong growth in ancillary sales– Clear improvement in Travel Services
• We are preparing for growth, recruitment of flying personnel has begun
• We received our first A350 aircraft andstrengthened further our financial position with Hybrid Bond issue in October
• Summer 2016: Fukuoka & Guangzhou, year-round to Miami, added weekly frequencies to Chicago, 12 new summer destinations
Finnair Q3 2015 Result, 30 October 20152
Q3 2015: Finnair’s strongest quarter ever
• Revenue increased, operational result strong at EUR 64M, +140% LY– Increased load factor in passenger
travel – Ticket revenues increased– Ancillary sales grew– Clear improvement in Suntours’
result– Leisure and business travel
increased
Finnair Q3 2015 Result, 30 October 20153
Favourable development in market environment • Leisure and business travel increased clearly
• Passenger demand on Chinese routes increased markedly in the third quarter. So far, the slow-down in Chinese economic growth has not affected passenger demand.
• Packaged tours supply in Finland was well balanced with demand.
• Decline in the price of jet fuel supported the result improvement, but strong USD dampened cost savings and increased other USD-denominated costs.
• Overcapacity in cargo traffic between Asia and Europe continued to weigh on cargo unit revenues.
• Finnair gained market share in European traffic. Market share in Asian traffic declined slightly from last year due to reduced capacity.*
• The Atlantic Joint Business (AJB) performed well in the Premium segment, and the Siberian Joint Business serving Japanese routes gained market share.
Finnair Q3 2015 Result, 30 October 20154 * Finnair’s estimates based on MIDT data collected on the sales volumes of travel agencies and Finnair’s estimates of airlines’ sales through their own sales channels, such as online.
Q3 revenue increased slightly, operational result was strong
• Revenue increased 2.3% to 637 M€– Passenger traffic revenue increased– Revenue from Cargo decreased – Loss of external revenue from sold operations
• Operational result 64 M€, increase 37 M€, +140%
• Fx impacts increased both unit revenues and costs – Revenue per available seat kilometre (RASK) at
constant currency decreased by 0.6% – Cost per available seat kilometre (CASK) at
constant currency decreased by 0.8%
5 * Operational result (EBIT), excluding non-recurring items and changes in the fair value of derivatives and in the value of foreigncurrency denominated fleet maintenance reserves.
Finnair Q3 2015 Result, 30 October 2015
637
450
500
550
600
650
Q1 Q2 Q3 Q4
Revenue by quarter
2013 2014 2015
10.1 %
-10%
-5%
0%
5%
10%
15%
Q1 Q2 Q3 Q4
Operational profit, % by quarter
2013 2014 2015
Positive trend in passenger traffic,revenue from cargo decreased
6
0
100
200
300
400
500
600
700
Q3 2014 Q3 2015
Ticket revenues Ancillary servicesCargo Other revenueTravel Services
623 M€ 637 M€
+8 %
-23 %
-55 %
+2 %
+41%
• Passenger traffic ticket revenue and ancillary sales grew significantly y-o-y.
• Cargo revenue decreased, partly reflecting the discontinuation of cargo freighter flights.
• Other Group External revenue decreased after the sale of Travel Retail store operations and Finncatering businesses.
• Travel Services' revenue flat.
Finnair Q3 2015 Result, 30 October 2015
Q3: Strong development in passenger ticket revenue, overcapacity weighing on cargo market market
7 Finnair Q3 2015 Result, 30 October 2015
ASK: Available Seat KilometresRPK: Revenue Passenger Kilometres
PLF%: Passenger Load Factor, %ATK: Available Tonne KilometresRTK: Revenue Tonne Kilometres
Ticket revenue: passenger revenue including leisure flightsAtlantic/Siberian Joint Business contribution included in the figures.
*Includes cargo freighter flights
North America
ASK mill km 654 +37.1 %
RPK, mill km 578 +36.8 %
PLF% 88.3 -0.2 %-p
Ticket revenue +41.2 %
Europe
ASK mill km 3,566 +5.2 %
RPK, mill km 2,926 +6.7 %
PLF% 82.0 +1.2 %-p
Ticket revenue +9.2 %
Asia
ASK mill km 3,848 -6.2 %
RPK, mill km 3,477 -3.8 %
PLF% 90.4 +2.2 %-p
Ticket revenue +1.7 %
Domestic
ASK mill km 314 +24.7 %
RPK, mill km 208 +24.5 %
PLF% 66.1 -0.1 %-p
Ticket revenue +22.5 %
Cargo*ATK mill km 365 -5.1 %
RTK mill km 207 -14.1 %
Cargo revenue -22.8 %
Total traffic
ASK mill km 8,383 2.0 %
RPK, mill km 7,189 3.5 %
PLF% 85.8 1.3 %-p
Ticket revenue +7.9 %
44%
43%
6%6%
Passenger Revenue Split
Asia
Europe
North America
Domestic
Events after the period
• First A350 received on 7 October 2015.
• EUR 200 million hybrid issued on 13 October 2015.
• Sale and leaseback of two first A350s in Q4. Expected impact on result EUR 70 million positive after concurrent expenses related to the phasing out of A340s.
Finnair Q3 2015 Result, 30 October 20158
A350 reforms customer experience and improves competitiveness
Finnair Q3 2015 Result, 30 October 20159
• First experiences in line with our expectations
• Outstanding reception across Europe
• Shanghai flights to commence on 21 November 2015
• Five aircraft in operation by Q2 2016
• Unique Nordic experience : design, service, Wi-Fi and inflight entertainment
Outlook for 2015• Finnair estimates that in 2015, its operational result is around break-even or
slightly positive.
• Capacity measured in Available Seat Kilometres will grow by approximately 3 per cent and that its revenue will remain approximately at the 2014 level. Finnair estimates, that its 2015 unit costs excluding fuel at constant currency will remain at the 2014 level.
• When calculated using the exchange rates effective at the end of the review period, the non-recurring items associated with the long haul fleet renewal in 2015 will have a substantial positive impact on Finnair’s operating result due to the strengthened US dollar. The non-recurring positive net impact of these arrangements on Finnair’s operating profit in H2/2015 is expected to amount to approximately EUR 70 million.
Finnair Q3 2015 Result, 30 October 201510
Finnair Q3 2015 Result, 30 October 201511
Financials
Result in briefQ3
• Revenue 637.1 M€(growth 14.3 M€ and 2.3% y-o-y)
• Available passenger kilometres (ASK) 8,383 mill +2.0 % vs PY, Revenue passenger kilometres (RPK) 7 189 mill +3.5%
• Operating expenses 576.2 M€(decrease 23.8 M€ and -4,0 % vs PY)
• Largest changes: fuel costs -23.8 M€,
• staff costs -7.3 M€, traffic charges +5.7 M€
• Operational EBIT improved by 37.5 M€to 64.2 M€
Q1-Q3• Revenue 1,738.5 M€
(growth 6.7 M€ and 0.4% y-o-y)
• Available passenger kilometres (ASK) 23,920 mill. +1.8 % vs PY, Revenue passenger kilometres (RPK) 19,399 mill +2.0%
• Operating expenses 1,727.2 M€(decrease 44,6 M€ and-2,5 % vs PY)
• Largest changes: fuel costs -43.9 M€staff costs -6.1 M€, traffic charges +24.0 M€
• Operational EBIT improved by 50 M€ to 22.9 M€
12 Finnair Q3 2015 Result, 30 October 2015
Key figures Q32015
Q32014
Change%
Q1-Q3 2015
Q1-Q3 2014
Change% 2014
Revenue and resultRevenue 637.1 622.7 2.3 1,738.5 1,731.8 0.4 2,284.5Operational EBITDAR 115.1 80.1 43.7 171.7 133.1 29.0 176.6Operational result 64.2 26.7 140.2 22.9 -27.1 184.6 -36.5
Operational result, % of revenue 10.1 4.3 5.8%-pp. 1.3 -1.6 2.9%-pp. -1.6
Operating result 50.7 23.6 114.7 36.7 -31.1 > 200% -72.5Result before taxes 48.9 21.2 130.2 29.4 -43.7 167.2 -99.1Result for the period 39.0 16.6 134.5 23.2 -35.4 165.6 -82.5Balance sheet and cash flowGross investment 18.4 15.3 20.3 38.2 68.4 -44.1 82.4Net cash flow from operating activities 62.6 -8.9 > 200 % 164.0 39.8 > 200% 24.2ShareShare price at the end of quarter 3.07 2.50 22.8 2.48Result for the period per share* 0.30 0.13 135.0 0.18 -0.28 164.4 -0.65Earnings per share, EPS 0.29 0.11 154.9 0.13 -0.33 139.4 -0.71
Finnair Q3 2015 Result, 30 October 201513
Key figures
* Before interest on hybrid bond
Operational result Q3 2014 vs. Q3 2015, M€
Finnair Q3 2015 Result, 30 October 201514
26.7
64.2
35.4
23.88.1
7.36.2 1.9 1 0.8 0.7 -0.6 -2.1 -2.6 -3.1 -3.7 -5.7
-13.9
-16.1
0.0
20.0
40.0
60.0
80.0
100.0
120.0
Record result in Airline Business
Revenue by quarter, M€ Operational result by quarter, M€
15 Finnair Q3 2015 Result, 30 October 2015
592
0
100
200
300
400
500
600
700
Q1 Q2 Q3 Q4
2014 2015
62
-40
-20
0
20
40
60
80
Q1 Q2 Q3 Q4
2014 2015
Clearly improved result in Travel Services
Revenue by quarter, M€ Operational result by quarter, M€
16 Finnair Q3 2015 Result, 30 October 2015
45
0
10
20
30
40
50
60
70
80
Q1 Q2 Q3 Q4
2014 2015
2.5
-5.0
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Q1 Q2 Q3 Q4
2014 2015
Q3 Operating expenses decreased by 4%
27%
14%
14%
12%
11%
10%
7%
3% 3%
Fuel
Staff costs
Leasing, maintenance, depreciation & impairments
Traffic charges
Ground handling and catering
Other costs
Other rental payments
Sales and marketing
Expenses for tour operations
Finnair Q3 2015 Result, 30 October 201517
Appreciation of USD dampened the decrease of fuel cost
• Q3 2014 hedging loss 1.7 M€
• Q3 2015 hedging loss 32.7 M€
Comparable Q3 fuel cost, EUR million
Finnair Q3 2015 Result, 30 October 201518
177153
0
31-81
27
0
20
40
60
80
100
120
140
160
180
200
Q3/2014 Volume Price Currency Hedgingdeviation
Q3/2015
M€
Cash funds increased 172 M€
Finnair Q3 2015 Result, 30 October 201519
362*
0
0
260
3
121
0
0
736
190*
130
0 63
0
0
152
55**
0
0
Net cash flow from operating activities
164.0
Net cash flow from investing activities
86.4
Net cash flow from financing activities
-78.2
-100.0
0.0
100.0
200.0
300.0
400.0
500.0M€
*Without marketable securities over 3 month **Change in value of marketable securities over 3 month
Q3 Negative net debt, strong balance sheet supports investments
Finnair Q3 2015 Result, 30 October 201520
360
462
645 543
0
200
400
600
800
1000
Interest-bearing debt
7x aircraftleases
Cash Adjusted netdebt
Composition of adjusted net debtStrong cash position and improving net cash flow
29 %
-33%
83 %
-50
0
50
100
150
2011 2012 2013 2014 30 Sep 2015Equity ratio Gearing Adjusted gearing
164
38
543
0
150
300
450
600
2011 2012 2013 2014 Q1-Q3 2015
Net operating cash flow Gross investments Liquid funds
%
M€
Strong balance sheet, negative net debt
M€
New hybrid bond strengthens capital structure further• In October, Finnair issued a 200 M€ hybrid bond, which is the largest hybrid bond
issue in Finland to date.
• Finnair’s new hybrid issue strengthens equity and enables competitive terms in other financing activities.
• The new hybrid has a life length of minimum 5 years.
• At the same time, Finnair redeemed 82 M€ of the higher-coupon 2012 hybrid.
• The new hybrid bond further diversified investor base with international investors.
Finnair Q3 2015 Result, 30 October 201521
Kiitos
22 Finnair Q3 2015 Result, 30 October 2015
Thank you
52%40%
8%
EUR USD* Other
Currency split, Q3
Sales currencies
23 Finnair Q3 2015 Result, 30 October 201523
Purchase currencies
Q3/14 Q3/15 Change% YTD/14 YTD/15 Change%
EUR/USD 1.33 1.11 -16.1 % 1.36 1.11 -17.8 %
EUR/JPY 137.75 135.89 -1.4 % 139.49 134.74 -3.4 %
50%
11%
11%
4%
3%3%
18%
EUR JPY CNY SEK KRW USD Muut
24
Fuel and currency sensitivities
Fuel sensitivity 10% changewithout hedging
10% change, takinghedging into account
Hedging ratio
(rolling 12 months from date of financial statements) H2 2015 H1 2016
Fuel EUR 41 million EUR 19 million 70% 63%
Currency distribution%
7–92015
7–92014 1–9 2015 1–9
2014 2014 Currency sensitivities USD and JPY(rolling 12 months from date of financial statements)
Sales currencies 10% change without hedging
EUR 50 49 56 57 58 -USD* 3 4 2 3 3 see belowJPY 11 12 9 10 9 EUR 18 millionCNY 11 10 8 7 7 -
KRW 3 2 3 2 3 -
SEK 4 4 5 5 5 -Other 18 19 17 16 15 -
Purchase currencies
EUR 52 50 51 51 52 -USD* 40 36 41 39 41 EUR 62 millionOther 8 14 8 10 7
* The sensitivity analysis assumes that the Chinese yuan and the Hong Kong dollar continue to correlate strongly with the US dollar..Finnair Q3 2015 Result, 30 October 2015
Rolling Hedging policy
Finnair Q3 2015 Result, 30 October 201525
Hedging positions as of 30 September 2015Hedging ratio for 2015: 70 %
• Finnair hedges jet fuel consumption 24 months ahead within the limits defined in the hedging policy.
• Finnair’s fuel purchases are 70% hedged for Q4 2015 and 63% for H1 2016.
• The company protects itself against the risks of currency, interest rate and jet fuel positions by using different derivative instruments, such as forward contracts, swaps and options.
Jet fuel spot price development
Finnair Q3 2015 Result, 30 October 201526
Jet fuel December 2009 – September 2015