ANA HOLDINGS Reports Consolidated Financial Results for the Three Months Ended June 30, 2015
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ANA HOLDINGS INC. (9202) Consolidated Financial Results For the three months ended June 30, 2015 ANA HOLDINGS reports Consolidated Financial Results for the Three Months Ended June 30, 2015 1. Consolidated financial highlights for the three months ended June 30, 2015 (1) Consolidated financial and operating results (% : year-on-year) Operating Operating income Ordinary income Net income revenues attributable to owners of ANA HOLDINGS, INC. Yen Yen Yen Yen % % % % (Millions) (Millions) (Millions) (Millions) Three months ended Jun.30, 2015 413,880 7.0 16,745 - 15,943 - 8,377 140.0 Three months 386,827 10.0 347 - (2,522) - 3,491 - ended Jun.30, 2014 *Comprehensive income for the period Apr.1 - Jun. 30, 2015 ¥ 29,190 million (239.4%) for the period Apr.1 – Jun.30, 2014 ¥ 8,600 million ( - %) Net income per share Yen Three months 2.40 ended Jun.30, 2015 Three months 1.00 ended Jun.30, 2014 (2)Consolidated financial positions Total assets Total net assets Equity ratio Net assets per Share Yen (Millions) Yen (Millions) % Yen As of Jun. 30, 2015 2,283,138 818,933 35.6 232.82 As of Mar. 31, 2015 2,302,437 803,552 34.7 228.45 (Reference) Shareholders’ equity as of Jun. 30, 2015 ¥813,749 million as of Mar. 31, 2015 ¥798,280 million 2. Consolidated operating results forecast for the fiscal year ending March 31, 2016 (% : year-on-year) Operating revenues Operating income Ordinary income Net income Net income attributable to per share owners of ANA HOLDINGS, INC. Yen Yen Yen Yen % % % % Yen (Millions) (Millions) (Millions) (Millions) FY2015 1,790,000 4.5 115,000 25.6 90,000 34.1 52,000 32.5 14.88 3. Other (1) Changes of significant subsidiaries during the three months ended June 30, 2015 (changes of specific subsidiaries in accordance with changes in the scope of consolidation): None Consolidated Equity method Newly added - - Excluded - - 1 (2) Application of accounting methods which are exceptional for quarterly consolidated financial statements: None (3) Changes in accounting policies, accounting estimates and restatement of corrections (i) Changes caused by revision of accounting standards: Yes (ii) Changes other than (i): None (iii) Changes in accounting estimates: None (iv) Restatement of corrections: None *For details, please see page 9 “3. Others (3) Changes in accounting policies, accounting estimates and restatement of corrections”. (4) Number of issued shares (Common stock) Number of Shares FY2015 FY2014 Number of shares issued As of Jun. 30 3,516,425,257 As of Mar.31 3,516,425,257 (including treasury stock) Number of treasury stock As of Jun. 30 21,224,608 As of Mar.31 22,069,782 Average number of shares Three months Three months 3,494,974,946 3,490,186,623 outstanding during the period ended Jun. 30 ended Mar. 31 * Treasury stock includes 14,980 thousand shares owned by the trust account of the Employee Stock Ownership Group as of June 30, 2015. Indication of quarterly review procedure implementation status These quarterly financial results are not subject to the quarterly review requirements as provided in the Financial Instruments and Exchange Act. The review of quarterly consolidated financial statements as provided in the Financial Instruments and Exchange Act had not been completed as of the date of these Consolidated Financial Results for the Three Months Ended June 30, 2015. Explanation for appropriate use of forecasts and other notes The forward-looking statements such as operational forecasts contained in this statements summary are based on information currently available to the Company and certain assumptions which are regarded as legitimate. Actual results may differ from such forward-looking statements for a variety of reasons. 2 APPENDIX Overview of Consolidated Financial Results for the Three Months Ended June 30, 2015 Qualitative Information / Financial Statements, etc. 1. Explanation of Consolidated Operating Results Yen (Billions) Three months ended Three months ended Consolidated Operating Results Year-on-Year (%) Jun. 30, 2015 Jun. 30, 2014 Operating Revenues 413.8 386.8 7.0 Air Transportation 357.1 335.1 6.6 Airline Related 57.8 53.6 7.9 Travel Services 36.3 36.7 (1.1) Trade and Retail 35.2 30.0 17.3 Other 7.9 7.5 5.9 Intersegment Transactions (80.6) (76.2) - Operating Income (loss) 16.7 0.3 - Air Transportation 15.2 (1.1) - Airline Related 1.9 2.7 (30.8) Travel Services 0.5 0.7 (28.6) Trade and Retail 1.4 0.5 164.3 Other 0.3 0.1 91.6 Intersegment Transactions (2.7) (2.7) - Ordinary income (loss) 15.9 (2.5) - Net income attributable to owners of 8.3 3.4 140.0 ANA HOLDINGS INC. See Notes 1, 2, 3 below. In the first quarter of fiscal year 2015 (April 1, 2015 – June 30, 2015; hereinafter referred to as “three months ended in June 30, 2015 ”), the Japanese economy continued its gradual recovery, helped by improvement in capital investment and signs of improvement in consumer spending. Although there is a risk of a down-turn in the economy, with a slump in some overseas economies and so on, we expect this gradual recovery to continue, as various government measures take effect. Under such economic conditions, revenue grew mainly in Air Transportation, with operating revenues of ¥413.8 billion, operating income of ¥16.7 billion, ordinary income of ¥15.9 billion and net income attributable to owners of ANA HOLDINGS INC. was ¥8.3 billion. An overview of the three months ended in June 30, 2015 by segment follows. 3 Overview by Segment ◎ Air Transportation Operating revenues: ¥357.1 billion, up 6.6% year-on-year Operating income: ¥15.2 billion, up from operating loss of ¥1.1 billion in the same period of the previous year ANA received the highest customer satisfaction rating – ‘5 STAR AIRLINE’ – from UK-based Skytrax for three years in succession and was also selected as the best airline in two categories: “World's Best Airport Services” and the “Best Airline Staff Service in Asia” during the three months ended in June 30, 2015. <Domestic Passenger Services> Three months ended Three months ended Category Year-on-Year (%) Jun. 30, 2015 Jun.30, 2014 Passenger Revenues (Billion yen) 152.3 148.3 2.7 Number of Passengers (Passengers) 9,911,095 9,970,786 (0.6) Available Seat km (Thousand km) 14,464,866 14,839,144 (2.5) Revenue Passenger-km (Thousand km) 8,851,636 8,788,988 0.7 Passenger Load Factor (%) 61.2 59.2 2.0 *See Notes 3, 4, 6, 10, 11 & 15 below. In domestic passenger services, passenger numbers was below last year's level, due to the starting of the Hokuriku Shinkansen. We made efforts to set various flexible fares in accordance with demand in response to changes in the competitive environment, therefore the revenues surpassed the previous year. Within the route network, ANA took advantage of the "low-noise slots" that allow low-noise jets to land and take off at Itami Airport to reopen the Haneda-Hakodate route and, we also increased the number of flights on the Fukuoka-Miyazaki route, starting with the summer timetable. In response to changes in the competitive environment with the starting of the Hokuriku Shinkansen, in addition, we made efforts to match capacity with demand by using smaller aircraft serving the Haneda-Toyama/Komatsu routes, among other adjustments. On the marketing front, Tabiwari fares were fine-tuned, and “Sandaime J Soul Brothers from EXILE TRIBE” was appointed as summer campaign characters in an effort to stimulate demand. Regarding services, the hot meals provided as in premium class were expanded from three routes to six routes in June in an effort to become more competitive. 4 <International Passenger Services> Three months ended Three months ended Category Year-on-Year (%) Jun. 30, 2015 Jun. 30 2014 Passenger Revenues (Billion yen) 119.3 109.2 9.2 Number of Passengers (Passengers) 1,910,612 1,689,997 13.1 Available seat-km (Thousand km) 12,601,869 12,273,939 2.7 Revenue Passenger-km (Thousand km) 9,194,191 8,471,987 8.5 Passenger Load Factor (%) 73.0 69.0 3.9 *See Notes 3, 5, 6, 10, 11 & 15 below. International passenger services surpassed year-earlier levels in both revenues and the number of passengers, due to robust business traveler and capturing burgeoning in-bound tourist demand to Japan from all regions. In regard to the network, ANA commenced a new service on the Narita-Houston route in June 2015 that captures business demand in by taking advantage of improved access to the southern regions of the United States as well as Central and South America, in addition to provide more convenient connection services between Asia and North America with the addition of flights on the Narita-Singapore route. On the marketing front, various discount fares from Japan and abroad were introduced, and efforts were made to stimulate sales by continually engaging in promotions conveying the appeal of the ANA brand and Japan in overseas markets. The Company also became the main sponsor of the first major of the LPGA tour, naming the tournament “ANA INSPIRATION” and becoming the official airline of the LPGA in an effort to raise the Company’s identity abroad. In services, we launched “SKY LIVE TV” in May, in an effort to be more competitive by enabling news and sports programs to be viewed in real time on certain aircraft. 5 <Cargo Services> Three months ended Three months ended Year-on-Year Category Jun. 30, 2015 Jun. 30, 2014 (%) Domestic Routes Cargo Revenues (Billion yen) 7.2 7.6 (5.4) Available Cargo Capacity (Thousand ton-km) 441,079 462,410 (4.6) Cargo volume (Tons) 104,786 110,361 (5.1) Cargo Traffic Volume (Thousand ton-km) 106,228 111,840 (5.0) Mail Revenues (Billion yen) 0.9 0.9 2.8 Mail Volume (Tons) 8,173 8,098 0.9 Mail Traffic Volume (Thousand ton-km) 7,893 7,978 (1.1) Cargo and Mail Load Factor (%) 25.9 25.9 (0.0) Three months ended Three months ended Year-on-Year Category Jun.