RNS Number:1735O
All Nippon Airways Co Ld
31 July 2003
For the first quarter ended June 30, 2003 July 31, 2003
Consolidated financial results
All Nippon Airways Co., Ltd. (9202)
1. Basis of quarterly financial results
(1) Changes in significant accounting
policies :
Certain simplified methods compared with latest financial period
are applied.
(2) Change of scope of consolidation and application of the equity
method :
Consolidation Equity method
Newly added - -
Excluded 3 -
2. Consolidated financial highlights for the first quarter ended June 30, 2003
(1) Summary of consolidated operating results Yen (Millions rounded down)
FY2003 first FY2002 first FY 2002
quarter quarter
% %
Operating revenues 259,627 - - - 1,215,909
Operating income (loss) (28,651) - - - (2,597)
Recurring profit (loss) (27,368) - - - (17,236)
Net income (loss) (18,324) - - - (28,256)
(2) Summary of consolidated financial
positions
FY2003 first FY2002 first FY 2002
quarter quarter
(As of June 30, (As of June 30, (As of March 31,
2003) 2002) 2003)
Total assets Yen 1,436,905 - 1,442,573
(Millions)
Shareholders' equity Yen 104,941 - 121,954
(Millions)
Shareholders' equity ratio % 7.3 - 8.5
Summary of consolidated cash flows
FY2003 first FY2002 first FY 2002
quarter quarter
Cash flows from operating Yen (17,176) - 85,952
activities (Millions)
Cash flows from investing Yen (37,618) - (52,478)
activities (Millions)
Cash flows from financing Yen 16,656 - (63,364)
activities (Millions)
Cash and cash equivalents at end Yen 119,992 - 158,121
of the period (Millions)
Notes : The quarterly financial results of FY2002 are not disclosed .
3. Forecast of consolidated operating results for the period ending March 31, 2004
No revision on forecasted operating results for the period ending March 31,2004 has been
made.
Summary of Consolidated Financial Results for First Quarter
Ended June 30th 2003
Financial Results
Overview
During the quarter under review (April 1st - June 30th, 2003) the Japanese economy remained mired in stagnation.
This, coupled with the worldwide spread of SARS, had a serious effect on the Group's air transportation business,
as well as on its travel services and hotel operations. As a result, despite steady progress in implementing its cost
reduction plan, the ANA Group posted decreased operating revenues and profits, resulting in a net loss of AY18.3 billion
on a consolidated basis for this quarter.
The following is a summary of operating results by business segment. (Revenue for each business segment includes
intercompany transactions.)
Air Transportation
In terms of domestic passenger operations, this year's shorter Golden Week holiday period meant fewer travellers.
This and the sluggish economy combined to reduce operating revenues by AY8.8 billion compared with the same period of
the previous year.
On the international side, meanwhile, saw signs of recovery at the end of this quarter in terms of a strong rebound of
Business Class passengers on European routes, thanks to the shorter duration of the Iraq War than expected. However,
this was offset by greatly reduced demand on other routes (particularly China) due to the SARS outbreak. As a result,
operating revenue decreased by AY12.6 billion compared with the same period of the previous year.
To deal with this situation, we adopted a system to allow us better to respond to fluctuations in international demand:
some Asian routes had fewer flights, used downsized aircraft, or were suspended altogether, while our Honolulu and Seoul
routes, where demand remained steady, were temporarily allotted more flights, including charters.
Finally, the International Cargo business increased its operating revenue by AY900 million, thanks to the establishment
of special cargo flights and expanded capacity.
Operating revenues in the air transportation segment as a whole, however, dropped significantly: down AY19.9 billion
from the same period of the previous year, resulting in an operating loss of AY27.9 billion.
Travel Services
While domestic travel services in this off-season period achieved better results than in the previous year, partly as a
result of our promotional sales efforts to raise demand, overseas travel services, due to the SARS outbreak, suffered a
major drop in demand. Operating revenues from this segment decreased by AY3.1 billion compared with the same period of
the previous year, resulting in an operating loss of AY0.6 billion.
Hotel Operations
This segment saw operating revenues decrease by AY2.5 billion year on year. However, if, in order to make a fair
comparison, we exclude operating revenues from the two overseas hotels sold in 2002 from the consolidated figures for
that year, the substantive revenue decrease would amount to AY0.9 billion.
Slack domestic demand, with fewer international travelers, affected operations: accommodation, banqueting and catering
all posted lower revenues. The overall operating loss was AY0.6 billion.
Other Businesses
The spread of SARS affected the operating revenues of some subsidiaries. The operating revenues at a subsidiary
providing international airline reservations and ticketing systems were down by half to AY0.3 billion compared with the
same period of the previous year, and duty free sales also experienced difficulties. Nevertheless, this segment achieved
an operating income of AY0.3 billion.
Financial Condition
Net loss before taxes was /28.2 billion during this first quarter. After adjustments including depreciation and
amortization, cash flows from operating activities registered an outflow of AY17.1 billion. Cash flows from investing
activities resulted in an outflow of AY37.6 billion due to capital investments, primarily aircraft. In total, the free
cash flow resulted in an outflow of AY54.7 billion. As for cash flows from financing activities, our capital procurement
centering on the issuance of bonds and the repayment of loans resulted in an inflow of AY16.6 billion. As a result, cash
and cash equivalents decreased by AY38.1 billion, with the balance standing at AY119.9 billion at the end of this
quarter.
As a result on our balance sheets, fixed assets, mainly aircraft, increased by AY26.3 billion compared with the previous
fiscal year, while cash and cash equivalents (cash, deposits and marketable securities) in current assets decreased by A
Y32.4 billion, and interest-bearing liabilities (loans and bonds) increased by AY18.2 billion.
Shareholders' equity decreased by AY17 billion as a result of the net loss for this period, with total assets
decreasing by AY5.6 billion.
(1) Consolidated statements of income (loss)
Yen (Millions)
FY2003 first FY2002 first Difference
quarter quarter
(For reference) (For reference)
Operating revenues and expenses
Operating revenues 259,627 280,955 (21,328)
Operating expenses 234,220 233,169 1,051
Sales, general and administrative 54,058 60,775 (6,717)
expenses
Operating income (loss) (28,651) (12,989) (15,662)
Non-operating income and expenses 1,283 (3,251) 4,534
Net interest income (expenses) (4,971) (5,450) 479
Others 6,254 2,199 4,055
Total recurring profit (loss) (27,368) (16,240) (11,128)
Net extraordinary gain (loss) (855) (1,958) 1,103
Net income (loss) before taxes (28,223) (18,198) (10,025)
Corporate, inhabitant and enterprise tax (9,917) (6,239) (3,678)
Minority interests 18 (163) 181
Net income (loss) (18,324) (11,796) (6,528)
Notes: The results of FY2002 first quarter above are prepared for the company's internal management purpose, and not
for disclosure. These data are stated solely for the convenience of the reader.
Profit and loss on equity method is not reflected in FY2002 first quarter.
(2) Consolidated balance sheets
Yen (Millions)
FY2003 first FY 2002 Difference
quarter
(As of June 30, (As of March 31,
2003) 2003)
Assets
Current assets 323,595 355,996 (32,401)
Cash, deposits and marketable 120,600 157,334 (36,734)
securities
Trade accounts receivable 93,402 94,435 (1,033)
Inventories 58,451 55,803 2,648
Other current assets 51,142 48,424 2,718
Fixed assets 1,112,237 1,085,905 26,332
Tangible fixed assets 866,269 851,044 15,225
Intangible fixed assets 42,059 42,679 (620)
Investments and others 203,909 192,182 11,727
Deferred assets 1,073 672 401
Total assets 1,436,905 1,442,573 (5,668)
Liabilities
Current liabilities 341,469 317,938 23,531
Trade accounts payable 112,539 126,911 (14,372)
Short-term loans, current portion of 117,751 83,916 33,835
bonds payable and long-term debt
Other current liabilities 111,179 107,111 4,068
Long-term liabilities 981,082 992,375 (11,293)
Bonds payable and long-term loans 845,886 861,479 (15,593)
payable
Accrued employees' retirement 111,106 106,780 4,326
benefits
Other long-term liabilities 24,090 24,116 (26)
Total liabilities 1,322,551 1,310,313 12,238
Minority interests 9,413 10,306 (893)
Shareholders' equity
Common stock 86,239 86,239 -
Capital surplus 52,588 104,228 (51,640)
Earned surplus (34,072) (67,388) 33,316
Unrealized gain (loss) on securities 1,515 223 1,292
Foreign currency translation (372) (404) 32
adjustments
Treasury stock (957) (944) (13)
Total shareholders' equity 104,941 121,954 (17,013)
Total liabilities, minority interests and 1,436,905 1,442,573 (5,668)
shareholders' equity
(3) Consolidated statement of cash flows
Yen (Millions)
FY2003 first FY2002 first
quarter quarter
(For reference)
I. Cash flows from operating activities
Net income (loss) before taxes (28,223) (18,198)
Depreciation 15,675 14,826
Others (4,628) 16,405
Net cash provided by (used in) operating (17,176) 13,033
activities
II. Cash flows from investing activities
Payment for acquisition of tangible fixed (58,661) (20,722)
assets
Proceeds from sale of tangible fixed 24,052 9,791
assets
Payment for acquisition of intangible (1,655) (3,814)
fixed assets
Others (1,354) 4,293
Net cash provided by (used in) investing (37,618) (10,452)
activities
III. Cash flows from financing activities
Increase (Decrease) in short-term loans 9,315 5,241
Proceeds from long-term loans 1,900 2,200
Repayment of long-term loans (22,895) (21,941)
Proceeds from issuance of bonds 29,823 -
Others (1,487) (203)
Net cash provided by (used in) financing 16,656 (14,703)
activities
IV. Effect of exchange rate changes on cash and cash 9 (788)
equivalents
V . Net increase(decrease) in cash and cash (38,129) (12,910)
equivalents
VI. Cash and cash equivalents at the beginning of the 158,121 188,648
period
VII. Net increase (decrease) resulting from changes in - -
scope of consolidation
VIII. Cash and cash equivalents at the end of 119,992 175,738
period
Notes: The results of FY2002 first quarter above are prepared for the company's internal management purpose, and not
for disclosure. These data are stated solely for the convenience of the reader.
(4)Segment information
The Company and consolidated subsidiaries conduct operations in air transportation, travel services, hotel operations
and other businesses.
Businesses other than air transportation, travel services and hotel operations are insignificant to the consolidated
results of operations of the Company and its consolidated subsidiaries and, accordingly, are included in 'Other
businesses' in the following industry segment information.
Yen (Millions)
Air Travel Hotel Other Total Elimination Consolidated
and/or
transportation operations businesses unallocated
services assets
Operating revenues 193,747 27,834 13,008 25,038 259,627 - 259,627
Intra-group sales and 16,441 3,634 2,950 15,584 38,609 (38,609) -
transfers
Total 210,188 31,468 15,958 40,622 298,236 (38,609) 259,627
Operating expenses 238,161 32,151 16,615 40,311 327,238 (38,960) 288,278
Operating income (loss) (27,973) (683) (657) 311 (29,002) 351 (28,651)
Yen(Millions)
Air Travel Hotel Other Total Elimination Consolidated
and/or
transportation services operations businesses unallocated
assets
Operating revenues 211,698 30,573 15,259 23,425 280,955 - 280,955
Intra-group sales and 18,406 4,092 3,200 17,571 43,269 (43,269) -
transfers
Total 230,104 34,665 18,459 40,996 324,224 (43,269) 280,955
Operating expenses 243,455 35,239 18,409 40,304 337,407 (43,463) 293,944
Operating income (loss) (13,351) (574) 50 692 (13,183) 194 (12,989)
Notes: The results of FY2002 first quarter above are prepared for the company's internal management purpose, and not
for disclosure. These data are stated solely for the convenience of the reader.
(5)Breakdown of operating revenues and overview of airline operating results(Consolidated)
'Breakdown of operating revenues (Consolidated)'
Yen (Millions)
FY2003 first quarter FY2002 first quarter Difference
(For reference) (For reference)
Domestic routes
Passenger 139,541 148,346 (8,805)
Cargo 6,100 5,860 240
Mail 2,166 2,538 (372)
Baggage handling 66 67 (1)
Subtotal 147,873 156,811 (8,938)
International routes
Passenger 32,173 44,870 (12,697)
Cargo 10,479 9,571 908
Mail 775 712 63
Baggage handling 144 161 (17)
Subtotal 43,571 55,314 (11,743)
Revenues from scheduled flights 191,444 212,125 (20,681)
(Total)
Other operating revenues 18,744 17,979 765
Total 210,188 230,104 (19,916)
Notes : 1. Segment operating revenue includes inter-segment transactions.
2. The results of FY2002 first quarter above are prepared for the company's internal management purpose, and
not for disclosure. These data are stated solely for the convenience of the reader.
'Overview of airline operating results (Consolidated)'
FY2003 first quarter FY2002 first quarter Year on year (%)
Domestic routes
Number of passengers 10,323,319 10,645,187 97.0
Available seat-km 15,849,108 15,187,626 104.4
(thousand km)
Revenue passenger-km 8,844,592 8,996,088 98.3
(thousand km)
Passenger load factor (%) 55.8 59.2 (3.4)
Cargo (tons) 95,731 91,969 104.1
Cargo-km (thousand tons km) 92,872 89,001 104.3
Mail (tons) 15,987 18,580 86.0
Mail-km (thousand tons km) 17,369 19,041 91.2
International routes
Number of passengers 566,535 871,975 65.0
Available seat-km 5,935,097 6,618,876 89.7
(thousand km)
Revenue passenger-km 3,245,743 4,514,495 71.9
(thousand km)
Passenger load factor (%) 54.7 68.2 (13.5)
Cargo (tons) 56,897 44,944 126.6
Cargo-km (thousand tons km) 256,348 239,137 107.2
Mail (tons) 3,048 2,492 122.3
Mail-km (thousand tons km) 14,393 12,929 111.3
Notes :
1. Domestic routes: ANA + Air Nippon Co., Ltd. (ANK) + Air Hokkaido Co., Ltd. (ADK) + Air Nippon Network Co., Ltd.
(ANN)
2. International routes: ANA + ANK + Air Japan Co., Ltd. (AJX)
3. These results do not include results of charter flights.
4. Data of International routes use preliminary figures.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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