Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
FINNAIR Q1 2017RESULT
28.4.2017PEKKA VAURAMO,
CEO PEKKA VÄHÄHYYPPÄ,
CFO
Revenue grew and result continued to improve
• Revenue* grew 4.1% - China, Korea and domestic traffic the biggest contributors.
• Number of passengers grew 4.1%; we flew with fuller planes.
• Lapland drew visitors: +40.000 passengers in domestic traffic y-o-y
• Ancillary and retail sales per passenger grew and was 13 euros/pax
• Q1 comparable operating result -9M€ -10th consecutive y-o-y improvement in a row (-15 M€ Q1/16)
* Excluding SMT2
Comparable operating result, rolling 12 months by quarter
50
10
-40
20
0
-20
60
40
-50
70
-30
-10
30
Q1 17
Q3 14
-48
-36
6153
14
-24
Q1 15
Q2 15
-31
FY 14
FY 16
FY 15
Q3 15
Q1 16
54 55
37
Q2 16
Q3 16
24
Revenue, excluding SMT Capacity and traffic
Strong passenger revenue performance on flat capacity
Comparable operating result
Comparable operating result continued to improve: +41.2% y-o-y
+4,1%
Q1 2017Q1 2016
554532
Travel services -0.5%Cargo -1.2%
Passenger revenue +4.6%Ancillary and retail revenue +13.9%
+41.2%
Q1 2017Q1 2016-15
-9
2,06.0007.000
01.000
4.0003.000
5.000
2,5
2.0001,0
0,0
0,5
9.0008.000
1,5
3,08.128
6.617
8.121
Q1 2017
6.400
Q1 2016
+0,1%
Capcity (ASK) + 0.1%Traffic (RPK) +3.4%Passengers +4.1%
Pax, mill.ASK, mill.
Strike actions at HEL airport caused close to 200 flight cancellations during the period
PLF 78.8%
PLF 81.4%
3
Passenger revenue, M€
• Asia +6.9%• North Atlantic -11.6%• Europe +3.4%• Domestic +7.2%• Total pax revenue +4.6%
Passenger load factor, %
4
Q1: Nordics drew visitors, Asia, Europe and domestic driving revenue growth
• Asia +4.8% -p• North Atlantic -2.2% -p• Europe +1.4% -p• Domestic -1.5% -p• Total +2.6% -p
Capacity (ASK), mill. km
• Asia -0.3%• North Atlantic -4.1%• Europe -0.3%• Domestic +11%
100
150
0
50
200
161
23
Domestic
49
Europe
166
North Atlantic
52
Asia
176165
26
Q1 2017Q1 2016
468
Europe
2.9912.999
North Atlantic
Domestic
606 519
4.021
632
Asia
4.01179
71748083 81
707678
88
DomesticEuropeAsia North Atlantic
Total
Work on enabling growth continued
• Wet lease on the Miami route until May; then Miami discontinued until autumn. Two wet leased A321’s to be replaced with own, new A321’s
• A new A350 simulator and a future narrow body simulator will enhance pilots' training
• Recruitments continue: pilots, cabin crew, digital experts, customer service.
• 20 M€ cost efficiency program will be fully completed and on time
5
A350 is yielding results
• 8 aircraft currently in use, 3 more to be delivered during 2017
• Customer satisfaction clearly improved, NPS 46%
• Regularity (98.9%) and tech Dispatch Reliability (97.5%) on a good level
• A350 has improved Finnair’s overall fuel efficiency: Fuel consumption per ASK -3.4%, per RPK -4.9%
• More passenger and cargo capacity
6
A350 is up to 25% more fuel efficient vs. the replaced A340 –aircraft
Growth accelerates – record breaking summer ahead
• 87 times a week to Asia in the summer
• Growing number of passengers: Over 40,000 passengers per day in peak summer days
• More capacity to favourite destinations in Europe and Asia for summer 2017:
• San Francisco and Reykjavik• Additions to Tokyo and Hong Kong• Record number of flights to China and
Japan
• More capacity to Lapland for winter 2017; 430,000 seats during November-April
7
18 destinations in Asia7 in Americas,over 70 in Europe
We develop our customer experience• Q1 Customer satisfaction excellent: NPS * 46%.
• Finnair Kitchen: In flight catering back to Finnair's own hands.
• Alipay rollout to all flights to China in in the summer; Ease of buying.
• Wi-Fi installations of the long-haul fleet are completed in May, installations to narrow body fleet will begin later this year.
• The mobile application and Finnair.com growing in popularity and increasing sales;• Ticket sales in Finnair's digital channels grew by
33% and ancillary and retail sales were up 24% from the comparison period.
8
Mobile app had 136,000 active users*, (+ 78%)
Finnair.com 2.3 million visitors / month* (+ 19%)
*Net promoter score, Q1/2016: 38 %, Mobile app and Finnair.com users in March 2017
Outlook unchangedOutlook 2017:• The demand outlook for passenger and cargo traffic in
Finnair’s main markets continues to involve uncertainty.• Finnair estimates that, in 2017, due to the fleet renewal
and introduction of new aircraft, its capacity will grow 8–10 per cent, weighted strongly towards the second half of 2017.
• Revenue is expected to grow more slowly than our capacity, reflecting increasing capacity in the relevant markets.
• In keeping with its disclosure policy, Finnair will issue guidance for its expected full-year operational result in connection with the half-year report 20 July 2017.
9
10
Finance
Q1 was 10th quarter of year-on-year profitability improvement in a row
11
• Passenger revenue grew by 19 MEUR, as a result of clearly improved outlook especially in Asian and European traffic from a weak comparison period.
• Ancillary revenue grew by 4 MEUR, Economy Comfort seats sold particularly well.
• Revenue from Travel services & agency decreased mainly due to sale of SMT. • Fuel efficiency has improved due to fleet renewal and aircraft up gauging, fuel
spot price has increased, but hedging delays the impact.• Increase in other expenses mainly related to currency hedging items.• Depreciation: Mainly fleet renewal related, change from A340 to A350.• Growth: additional costs from recruitment, training and use of wet leases.
PY
26,92127,268
CY
+1.3%
CY
8,121
8,128
PY
+0.1%
2,501
PY
+4.1%
CY
2,604
RASK
CYPY
162EUR / PAX
+0.5%
162EUR / PAX
+2.6pp
78.8
CY
81.4
PY
+9.4%
11.9EUR /PAX
CYPY
13.0EUR /PAX
CY
6.82
+3.3%
6.61
PY
PY CY
-2.9%
32.0KG
32.9KG
1.22EUR /TON
1.20EUR /TON
PY CY
+1.7%
FLIGHTS ASK, mill
PAX, 1000 Avg. Fare1 PLF, %
Ancillary REV Cargo, mill Cargo REV
PY= Q1 16, CY= Q1 17, 1) Passenger revenue/number of passengers
+6.3
Q1 EBIT ACT
-9.0
Other (NET)
-5.1
Travel Services -0.3 & Agency -4Cargo -0.5Ancillary & Retail 4.1Passenger 18.6
Q1 EBIT PY
Depreciation
-6.2 -2.3
-10.9
RentsTraffic Other exp.
2.9
Fuel
10.0
Revenue
18.0
-15.3
Q1 2017 Passenger revenue vs. Q1 2016 Q1 2017 Other revenue items vs. Q1 2016, excluding SMT
12
Revenue grew on the back of improved load factors and solid performance in Asian and European traffic
Yield, mix, other
PLF (load)
FXASK Q1 ACTQ1 PY
4.1
3.4404.0
11.0
422.62.5
-3.0
404.0
11.4
North Atlantic
AsiaQ1 PY
+18.6
Q1 ACT
422.6
5.5
Unallo-cated
3.5
Domestic
1.2
Europe
Total ASK (%) PLF (pp) Yield1 (%)Δ to PY 0.1% 2.6 1.2%Q1 ACT 81.4%Q1 PY 78.8%
Δ to PY FEA ATA EUR DOMASK (%) -0.3% -4.1% -0.3% 11.0%PLF (pp) 4.8 -2.2 1.4 -1.5Yield1 (%) 1.3% -5.2% 1.7% -1.4%RASK (%) 7.2% -7.8% 3.7% -3.4%
59.1
39.6
Q1PY
29.7128.4
Ancillary & retail revenue
131.8
58.839.2
33.8
Travel services
Cargo
-0.5 -0.3
4.1
Q1 ACT
+3.4
Travel services
Ancillary and retail revenueCargo
Bond issue increases loans and cash, adjusted gearing remains conservative at 84.1%
• Liquid funds increased to 887.5 million euros• Interest bearing debt increased due to new 200 M€ bond issue,
old partially prepaid (85 M€)
Positive operating cash flow due to improved result and increased sales
13
Balance sheet and cash flow
• Investments consist of one final payment of E190 aircraft plus maintenance investments for owned fleet
Equity817,5
Other assets451,1
31 Mar 2017
HFS 131,12.649,9
Der. 26,8
IB debt815,1Der. 121,4
2.528,7
733,0
139,3
877,1
103,3 366,8
82,5
1.048,7
31 Mar 2016 31 Dec 2016
797,3
176,6
2.178,7
Fleet1.058,8
382,9Cash887,5
857,0
31 Mar 2016
380,0
31 Dec 201631 Mar 2017
466,8
2.178,7
479,8
2.649,9Other
liabilities513,5 580,4
348,5
Unflowntickets476,9
2.528,7
25,2
709,1
717,7 143,0
+272.4 M€
Investing+145.1M€
Financing+103.4 M€
Loan
pro
ceed
s
Oth
er
186.7
650.8
Disp
osals
Inve
stmen
ts
-41.9
Oth
er
-0.8
Wor
kinng
capit
al
0.419.1
Cash
201
6*
5.5
199.3
EBIT
DA
378.4
Operating23.9 M€
Cash
Q1*
Loan
pay
men
ts
-95.9
*Cash excluding commercial papers of over 3 month maturity
3 new A350 and 5 A321 aircraft to be delivered during 2017*
• Capacity growth to pick up in Q2 with new aircraft deliveries:• 8th A350 delivered in April, 3 more to be delivered
during 2017• 2 A321 aircraft delivered in Q1, 5 more to be
delivered during 2017 • Aircraft returns: All remaining A340 aircraft to be sold
back and returned to Airbus during 2017, one A319 returned after lease expired in Q1, two A321 aircraft to be returned in Q2 (wet leases)
• Net additions in 2017: 3 widebody aircraft and 4 narrow body aircraft
Net investment commitments 457 M€ 2017-2019
14
Capacity growth will pick up from Q2 onwards with new aircraft deliveries
M€
*2017 new deliveries in total: 4 A350’s and 7 A321’s
050
100150200250300350400450500
Q2-Q4 2017 2018 2019 2020 2021 2022 2023
Planned Investments Net investments (divestments)
SLB + other divestments Axis
THANK YOU
Contact us:IRO Kati Kaksonen+358 9 818 [email protected]
Income statement
in mill. EUR Q1 2017
Q1 2016
Change %
2016
Revenue 554.4 536.4 3.3 2,316.8Other operating income 20.2 22.1 -8.5 75.5Operating expensesStaff costs -90.5 -91.9 -1.4 -362.5Fuel costs -111.6 -121.6 -8.2 -491.5Other rents -44.4 -42.1 5.4 -167.4Aircraft materials and overhaul -35.6 -36.6 -2.7 -147.3Traffic charges -58.2 -61.1 -4.7 -262.8Ground handling and catering expenses -66.9 -65.1 2.7 -258.9Expenses for tour operations -28.6 -26.9 6.4 -87.8Sales and marketing expenses -17.5 -18.1 -3.2 -76.9Other expenses -71.2 -58.8 21.0 -266.6Comparable EBITDAR 50.1 36.4 37.8 270.4Lease payments for aircraft -30.0 -28.8 4.3 -109.5Depreciation and impairment -29.1 -22.9 27.1 -105.8Comparable operating result -9.0 -15.3 41.2 55.216
Revenue Comparable operating result
17
Revenue and comparable operating result development
600550
400
200150
350
650
450
250
10050
500
0
300
Q3 Q4Q2Q1
622544521
570536 568641
570554
2016 20172015
70
60
40
30
20
10
0-10
-20
50
-30Q3Q2 Q4Q1
3 1-13-9
64
-152
-28
66
20172015 2016
• Q1/16 hedging loss 45,1 mEUR• Q1/17 hedging profit 0,1 mEUR
18
Fuel costs decreased despite spot price increaseImproved fuel efficiency with fleet renewal and aircraft up gauging
122 112
-3-4535
3
0
20
40
60
80
100
120
140
160
180
2016Q1 Volume Price Currency Hedging deviation 2017Q1
mEUR
%- share of operating costs (584 mill. Eur. in Q1) Fuel hedges as of 31 March 2017
19
Fuel the single largest cost item
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%hedge ratio
upper
lower19 %
16 %
16 %10 %
11 %
12 %
8 %3 % 5 %
Fuel Staff
Leasing, maintenance, depreciation & impairment Traffic charges
Groundhandling & catering Other costs
Other rents Sales & marketing
Tour operations
Hedging, currencies and sensitivities
Fuel sensitivities 10% change Hedging ratio(rolling 12 months from date of financial statements)
without hedging with hedging H1/2017 H2/2017
Fuel EUR 47 million
EUR 23 million 73 % 70 %
Currency distribution 1–3 1–3 2016 Currency sensitivities Hedging ratio for operational cash flows % 2017 2016 USD and JPY
(rolling 12 months from date of financial statements for operational cash flows)
(rolling 12 months from date of financial statements)
Sales currencies 10% change without hedging
10% change with hedging
EUR 61 62 56 - -USD* 3 3 4 see below see below see belowJPY 7 6 9 EUR 20 mill. EUR 10 mill. 70 %CNY 5 5 7 - -KRW 3 2 3 - -SEK 6 5 5 - -Other 15 17 16 - -Purchase currenciesEUR 57 55 54 - -USD* 35 37 38 EUR 54 mill. EUR 17 mill. 71 %Other 8 8 8
20* Hedging ratio for USD basket. The sensitivity analysis assumes that the Chinese yuan and the Hong Kong dollar continue to correlate strongly with the US dollar.