Investor Relations 2011
2010. 4Q Performance
2011.2.10.
1. 2010. 4Q Financial Performance
1) Summary
50,726
38 872
) y
6,120
Revenue Operating Income
12,816
1 918
10,898
38,87211,854(30.5%)
420
800
380 8,4871,918(17.6%)
380(90.5%)
’09.4Q ’10.4Q 2009 2010 ’09.4Q ’10.4Q 2009 2010
-2,367
Q Q 2009 2010 09.4Q 10.4Q 2009
Borrowings Stock holder’s Equity Debt Ratio
38,64234,862-3,779
(-9 8%) 7 318
10,061
2 743
g q y
662% 695%
485%( 9.8%) 7,318 2,743
(37.5%)274%
2009 2010 2009 20101
2007 2008 2009 2010
2) Revenue Proportion
1. 2010. 4Q Financial Performance
2) Revenue Proportion
Performance Proportion Op. Cost Proportion
Dom.Others4.9%9.8% Labor
13.8%
Others
32 4%
Int’l
Cargo
28.2% Fuel
31 0%
32.4%
Passenger
57.0%
31.0%
MaintenanceSales
CommissionRental
7.7%Dep. &
Amortization
5.1%
4.5%Commission
5.4%
2
3) Financial Performance
1. 2010. 4Q Financial Performance
Category '10.4Q. ’09.4Q. Change Change(%) 2010 2009 Change Change
(%)
(Unit : KRW 100mil.)Income Statement
3) Financial Performance
Revenue 12,816 10,898 1,918 17.6% 50,726 38,872 11,854 30.5%
Cost of sales 12,016 10,479 1,537 14.7% 44,606 41,239 3,367 8.2%
Operating Income 800 420 380 90 5% 6 120 (2 367) 8 487Operating Income 800 420 380 90.5% 6,120 (2,367) 8,487 -
- Operating Margin(%) 6.24% 3.85% 2.4%p - 12.06% -6.09% 18.2%p -
Non-Operating Income/Cost (Net) (659) (1,704) 1,045 - (2,620) (1,440) (1,180) -Income/Cost (Net)- Net Financing Cost 497 512 -15 -3.0% 2,128 2,150 -21 -1.0%
- Gain on ForeignCurrency Translation -24 117 -141 - 113 779 -666 -85.5%
I b f Income before taxes 141 (1,285) 1,426 - 3,500 (3,807) 7,307 -
Net income (376) (519) 143 - 2,191 (2,663) 4,854 -
Exchange rate 1,140.9 1,178.5 -37.6 -3.2% 1,159.4 1,281.4 -122.0 -9.5%
Fuel Price234 7 197 0 37 6 19 1% 214 5 166 6 47 9 28 7%
3
(MOPS, ¢/USG)234.7 197.0 37.6 19.1% 214.5 166.6 47.9 28.7%
3) Financial Performance(cont’d)
1. 2010. 4Q Financial Performance
) ( )
Category 2010 2009 Change Change(%)
(Unit : KRW 100mil.)Balance sheet
Category 2010 2009 Change Change(%)
Total Asset 58,837 58,150 687 1.2%
Total Liabilities 48,776 50,832 -2,056 -4.0%
- Borrowings 34,862 38,642 -3,779 -9.8%
Stock holder’s Equity 10,061 7,318 2,743 37.5%
- Common Stock 8,921 8,759 162 1.9%
Debt Ratio 484.8% 694.6% -209.8%p -
Borrowings by Currency
Category 2010 2009 Change Change(%)
Borrowings(KRW100mil.) 34,862 38,642 -3,779 -9.8%
- KRW(100Mil.) 24,559 27,665 -3,106 -11.2%
- USD(Mil.) 855,761 816,812 38,949 4.8%
- JPY(Mil.) 3,988 11,402 -7,414 -65.0% 4
4) Operating Cost(U it KRW 100 il )
1. 2010. 4Q Financial Performance
) p g
Item ’10. 4Q. ’09. 4Q. Change Change(%)
Operating Cost 12,016 10,479 1,537 14.7%
(Unit : KRW 100mil.)
Fuel Cost 3,648 3,192 456 14.3%
Fuel Price(¢/ USG) 232.5 206.1 26.5 12.8%Volumes (Mil. USG) 140.0 132.7 7.3 5.5%
( /$)Exchange rate(₩/$) 1,120.0 1,201.7 -81.7 -6.8%The fuel price and usage increased
Wages 1,938 1,240 698 56.3%Number of Employees 8 580 8 139 441 5 4%Number of Employees 8,580 8,139 441 5.4%
Unpaid salary increment was paid, 2010 incentive was partially included on 4Q. wages
Depreciation 605 529 77 14.5%Number of Aircraft onFinancing Leases/Owned * 32.0 31.0 1.0 3.2%
Aircraft Rental Cost 793 817 -24 -3.0%Number of Aircraft on
42 2 41 8 0 4 1 0%Operating Leases * 42.2 41.8 0.4 1.0%
The exchange rate decreasedMaintenance Cost 532 526 6 1.2%
The number of engines, need to be repaired, was increased (13 → 15)Sales Commission 638 553 85 15.4%
* Figures include aircrafts leased to Air Busan5
1) Market Shares
2. 2010. 4Q Operating Performance
1) Market Shares
i i h i li
62%58%
37%40% 39%
40%39%
Asiana Korean Air Other Airlines
51% 50%52% 51%
46%43%
35% 24% 25% 26%
37% 37% 39%39%
35% 36%
27%28% 25%
32% 33%
26%22%
27%
35%23% 24% 25%
22% 22% 23% 23%27%
28% 25% 26%
6%10%
D P I t’l P C
2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010
Dom. Passenger Int’l Passenger Cargo
[Source: Korea Airport Corporation]6
2) Revenue Proportion by routes
2. 2010. 4Q Operating Performance
) p y
Passenger Cargo
Dom.Oceania Japan
Oceania
0.9%Dom.
8.2%EU
6.5%
Oceania
5.8% Dom.
0.4%
Japan
6.5%
S.E. Asia
14 9%
EU
21.6%Japan
23.5%USA
18.5%
14.9%
China
S.E. AsiaChina
8.6%
USA
47.2%20.0%17.3%
7
3) Int’l Passenger
2. 2010. 4Q Operating Performance
The yield increment is continued, though RPK increment slows down due to the decline of number ofJapanese and foreign inbound passengers on Dec. by geopolitical risk of North Korea.
3) Int l Passenger
Item ‘10. 4Q. ‘09. 4Q. Change Change(%)Rev(KRW 100Mil.) 6,871 5,262 1,609 30.6%
Operating
ASK(Mil.Km) 8,815 8,308 507 6.1%RPK(Mil.Km) 6,433 5,998 435 7.3%
L/F 73.0% 72.2% 0.8%p -Yi ld(KRW) 106 8 87 7 19 1 21 8%Yield(KRW) 106.8 87.7 19.1 21.8%Yield(¢) 9.5 7.5 2.0 26.7%
(Revenue doesn’t include sales commission)
RoutesRPK(Mil.Km) Yield(KRW)
‘10. 4Q. ‘09. 4Q. Change(%) ‘10. 4Q. ‘09. 4Q. Change(%)Int’l Passenger 6,433 5,998 7% 107 88 22%
J 808 709 14% 218 187 16%Japan 808 709 14% 218 187 16%S.E. Asia 1,725 1,527 13% 87 76 14%
China 750 608 23% 172 152 14%USA 1 967 1 898 4% 71 57 24%USA 1,967 1,898 4% 71 57 24%EU 605 680 -11% 81 58 39%
Oceania 579 576 0% 76 64 18% 8
(U it Mil K )
2. 2010. 4Q Operating Performance
3) Operating Performance(Cont’d)
6,7936 539
6,935RPK Change(%)
(Unit: Mil.Km)
Int’l Passenger RPK
3) Operating Performance(Cont d)
5,347 5,3215,695
5,3865,779 5,690
5,953
5,300 5,5015,122
6,227 5,998
6,7936,539 6,433
18%23%
28%
RPK Change(%)
18%
8% 5% 4%8% 7% 5%
‐2% ‐5% ‐10%
5%13% 11%
7%
'07.1Q 2Q 3Q 4Q '08.1Q 2Q 3Q 4Q '09.1Q 2Q 3Q 4Q '10.1Q 2Q 3Q 4Q
(Unit : KRW)Int’l Passenger Yield
84 8192 87 90 92
104 10597
86 90 8893 97
114107
27%
Yield change(%)Int l Passenger Yield
84 81
-3% -2%4% 4% 7%
14% 14%21%
8%
-7%14%
-4%
13%
27%22%
-14% -17%
'07.1Q 2Q 3Q 4Q '08.1Q 2Q 3Q 4Q '09.1Q 2Q 3Q 4Q '10.1Q 2Q 3Q 4Q9(Change rate : year-on-year)
4) Cargo
2. 2010. 4Q Operating Performance
With the arrival of peak season of cargo, RTK is increased year-on-year due to the expert growth ofmachinery like car parts while cargo yield is decreased due to the basis effect of last year’s peak price.
4) Cargo
Item ‘10. 4Q. ‘09. 4Q. Change Change(%)Rev(KRW 100Mil.) 3,434 3,411 23 0.7%
Operating
ATK(Mil.KM) 1,207 1,154 52 4.5%RTK(Mil.KM) 964 908 55 6.1%
L/F 79.8% 78.7% 1.2%p -Yield(KRW) 356 4 375 5 19 1 5 1%Yield(KRW) 356.4 375.5 - 19.1 -5.1%Yield(¢) 31.8 32.2 - 0.4 -1.1%
(Revenue doesn’t include sales commission)
RoutesRTK(Mil.Km) Yield(KRW)
‘10. 4Q. ‘09. 4Q. Change(%) ‘10. 4Q. ‘09. 4Q. Change(%)Cargo Total 964 908 6% 356 375 -5%
Japan 25 23 10% 895 808 11%Japan 25 23 10% 895 808 11%S.E. Asia 128 127 0% 401 363 10%
China 30 33 -10% 978 904 8%USA 532 495 8% 305 331 -8%EU 235 218 8% 315 363 13%EU 235 218 8% 315 363 -13%
Oceania 10 9 11% 303 290 5%Domestic 4 4 6% 339 322 5%
10
4) Cargo (Cont’d)
2. 2010. 4Q Operating Performance
(Unit: Mil.Km)Cargo RTK
4) Cargo (Cont d)
849 896 864967
861 867 834777
703 741 785
908 889 929879
964
17%27% 25%
12%
RTK change(%)
8% 1% -2%6% 1% -3% -3%
-20% -18% -15%-6%
% 12% 6%
2Q 3Q 4Q 2Q 3Q 4Q 2Q 3Q 4Q 2Q 3Q 4Q
'07.1Q
Q Q Q
'08.1Q
Q Q Q
'09.1Q
Q Q Q
'10.1Q
Q Q Q
(Unit : KRW)Cargo Yield
241 232248
278 271
316 363 357
255 261303
375349
387 368 356
36%47%
28% 37%48%
Yield change(%)
241 232
-10% -9% -3%6%
13%
28%
-6%-18% -16%
5%
37%21%
-5%
'07.1Q
2Q 3Q 4Q
'08.1Q
2Q 3Q 4Q
'09.1Q
2Q 3Q 4Q
'10.1Q
2Q 3Q 4Q
(Change rate : year-on-year) 11
1) Major Index
3. 2011 Business Plan
Exchange Rate Fuel Price
1 300F/X rate
$$125 0$/BBL
1,265
1 143
1,200
1,300 $123.3
$109.2$110.0
$125.0
1,0231055
1,143
1,100
1,000
1,100
$85.4$89.3
$80.6
$93.8
$80.0
$95.0
956927
900
2005 2006 2007 2008 2009 2010 2011(E)
$71.8
$65.0
2005 2006 2007 2008 2009 2010 2011(E)
Category 2010 2011(E) Change(%)Market
F/X R t (₩/$) 1,159 1,100 -5.1%
Category 2010 2011(E) Change(%)
Mops($/BBL) 90 1 106 7 18 5%F/X Rate(₩/$) 1,159 1,100 5.1%
Accounting F/X Rate(₩/$)
1,143 1,100 -3.7%
Mops($/BBL) 90.1 106.7 18.5%
Fuel Price($/BBL)
93.9 109.2 16.3%
Category 2011 SensitivityCategory 2011 SensitivityF/X ₩/$ 10↓ : Cash flow loss 7.6bil / Translation loss 5.5bilFuel MOPS 1$/BBL ↑: Fuel Cost increase(Before Hedge 14.8bil./ After Hedge 10.7bil.) 12
3. 2011 Business Plan
2) Business Plan
(Unit : KRW 100mil.)
2) Business Plan
D• Income Statement
Financial Plan Operating Plan
Category 2010 2011(E) Change(%)
Revenue 50 726 55 000 8 4%
(Unit : KRW 100mil.)
Category 2010 2011(E) Change(%)
ATK(Mil KM) 2 148 2 160 0 6%
• Dom. passengerIncome Statement
Revenue 50,726 55,000 8.4%Operating Income 6,120 6,100 -0.3%
Operating M i (%) 12 1% 11 1% -1 0%p
ATK(Mil.KM) 2,148 2,160 0.6%
Yield(KRW) 171 169 -0.9%
Margin(%) 12.1% 11.1% 1.0%p
C
• Balance sheet(Unit : KRW 100mil.)
• Int’l Passenger
Category 2010 2011(E) Change(%)
ATK(Mil KM) 34 730 36 232 4 3%Category 2010 2011(E) Change(%)
Total Asset 58,837 59,699 1.5%
T t l
ATK(Mil.KM) 34,730 36,232 4.3%
Yield(KRW) 103 110 6.9%
• CargoTotal Liabilities 48,776 45,047 -7.6%
Stock holder’sEquity 10,061 14,652 45.6%
• Cargo
Category 2010 2011(E) Change(%)
ATK(Mil.KM) 4,155 4,438 6.8%Debt Ratio 484.8% 307.4% -177.4%p
( ) 4,155 4,438 6.8%
Yield(KRW) 370 378 2.1%13
3) Fleet Plan
3. 2011 Business Plan
(As end of year)Fleet Plan Introduction of New Aircraft
3) Fleet Plan
A/C Type 2010 2011(E) Change
B737 2 2 0
A320/321 26 28 2
A380 6 Fleets- Delivery from 2014 to 2017
- Jumbo A/C with more than 500 seats/
Narrow Body 28 30 2
B767 7 7 0
A330 9 10 1
- Expand of long haul A/C & take-off to aPremium airline
A330 9 10 1
B777 11 11 0
B747 4 4 0
A350 XWB(800/900/1000) 30 Fleets- Delivery from 2016 to 2022- Mid/long haul A/C with 270~350 seats
Wide Body 31 32 1
Passenger 59 62 3
Freighter 10 10 0
Mid/long haul A/C with 270 350 seats- Eco-friendly aircraft(Low noise & emission)
Freighter 10 10 0
Total 69 72 3 U.S.A.U.S.A.EuropeEuropeAsia2011 Introduction of Aircraft
- A321 : 2 Fleets (Jan, Feb)- A330 : 1 Fleet (Mar)
14