China Eastern AirlinesChina Eastern Airlines2012 Results Announcement

2013.3.27

DisclaimerThis presentation contains forward‐looking forecast and statements that reflect the

company’s current opinions on future events and its future financial performance.

These opinions were based on certain assumptions, which were determined by

various risk factors and subject to change. This presentation does not give the

assurance that the events predicted will actually occur, the forecast will materialize, or

the assumptions made were correct. The actual results may deviate materially from

the forecast.

This presentation is prepared under IFRS. Except for otherwise stated, 2012, 2011 and

2010 financial and operating figures include Shanghai Airlines Company Limited,

while 2009 and prior years do not. 2012 financial figures are VAT‐based, while 2011

and prior years are based on business tax.

1

IndustryCircumstances Theinternationalcrudeoilpricesstayedat

highlevelsingeneral

SlowdowninRMBappreciationagainstUSD

Normalizedimpactfromthedevelopmentofhigh–speedrailway

TheJapanesemarketwasundertheinfluenceofgeopoliticalfactors

Stronggrowthindemandforprivatetravel

Freightmarketswerestillstuckinatrough

0

20

40

60

80

100

120

140

Jan-09 Jan-10 Jan-11 Jan-12 Jan-13

5.96

6.16.26.36.46.56.66.76.86.9

Jan-09 Jan-10 Jan-11 Jan-12 Jan-13

USD/CNY

Brentoilprices

2

ResultsHighlights(RMBmillion) 2011 2012 YoY Change

Total Turnover 83,465 86,973 4.2%

Operating expenses 79,292 82,745 4.4%

Operating profit 4,173 4,228 1.3%

Profit attributable to shareholders 4,576 2,954 -35.4%

EBITDAR 15,758 16,832 6.8%

Earning per share(RMB) 0.41 0.26 -35.4%

Cashflowsfromoperatingactivities 13,623 12,617 -7.4%

ATK(million) 18,662.5 19,721.4 5.67%

RTK(million) 13,402.1 14,406.5 7.49%

Number of aircraft 377 416 39

Overall load factor 71.81% 73.05% 1.24pts

Daily utilization rate of aircraft(hours) 9.84 9.79 -0.05

3

BreakdownofTrafficRevenue

65.8% 64.8%

29.4% 30.6%

4.9%4.6%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2011 2012

Domestic International Regional

68,434 71,419

8,080 8,025

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2011 2012

RM

B M

M

Passenger Cargo

TrafficRevenueBreakdown TrafficRevenueBreakdownbyArea

3.8%

Note：Traffic Revenue just includes Passenger and Cargo Revenue

RM

B M

M

4

Passenger ‐ DataHighlights

RASK&RRPK

PassengerloadfactorandPassengernumbers2012 YoY

Change

Passengerrevenues(RMBmillion)

71,419 4.36%

ASK(million) 136,723.95 6.91%

RPK(million) 109,112.68 8.14%

Passengernumbers(thousandtime)

73,077.06 6.33%

Passengerloadfactor

79.81% 0.92pts

RASK(RMB) 0.52 -2.38%

RRPK(RMB) 0.65 -3.50%

0.54

0.68

0.52

0.65

00.10.20.30.40.50.60.70.8

RASK RRPK2011 2012

44,043

64,930 68,725 73,077

72.16%77.98% 78.89% 79.81%

50%

60%

70%

80%

20,000

40,000

60,000

80,000

2009 2010 2011 2012

载客人数（千人） 客座率Passenger numbers(thousand time)

Passenger load factor

5

Passenger ‐ DomesticMarket

北京

上海

香港深圳广州

昆明

成都

兰州太原 石家庄

Normalizedimpactofhigh‐speedrailway

InJuly2011,Beijing–ShanghaiHigh‐SpeedRailwayofficiallycommenceditsoperation

Impactreducesasroutedistanceincreases

Impactweakenedovertime

Respondandseekcooperationactively

Followmarkettrendanddeploycapacityaccurately

Increasecapacityforpeakseasons

Slowdowningrowthrateofbusinesstravelers

Maintainingrelativelyhighpassengerloadfactor

domestic passenger load factor from Jan-Dec

72%74%76%78%80%82%84%

2012

6

Passenger ‐ InternationalandRegionalMarketsJapaneseroutesareaffectedbygeopoliticalfactors

FlexiblyadjustedcapacityofJapaneseroutesbasedonmarketdemands:Jan‐AugincreasedcapacityYoYSep‐DecdecreasedcapacityYoY

InSep‐Dec,passengerloadfactorandpassengertrafficvolume ofJapaneseroutesexperiencedcertainextentofdecrease

Passengerloadfactorofinternationalroutesincreasedby4.4%ingeneral

Europe,USandAustralia:launchednewroutesandincreasedfrequencyofflights

Regional: emphasizedontheTaiwanMarket

72%74%76%78%80%82%84%86%

2012

international passenger load factor from Jan-Dec

Passenger ‐ HubConstructionSignificantincreaseinopportunitiesforflightconnections

Continuousincreaseintransfertravelers

Marketsharesincorehub(ShanghaiPudong)andregionalhubs(namely,KunmingandXi’an)were36.6%,42.1%and33.2%,respectively

Numberoftransfertravelersandconnectionopportunitiesobviouslyincreased

Launchingof“Air‐RailService”productsasacollaborationoftheairlineandrailwaysbureau

CooperatewithPudong AirporttorenovateTerminal1

EffectivelyintegratedresourcesforgroundhandlingofPudong Airport

7

2550

636261

2791

713396

0

500

1000

1500

2000

2500

3000

上海 昆明 西安

2011 2012

Number of OD in core markets

Shanghai Kunming Xi’an

147.0

31.117.8

179.7

33.614.8

0

40

80

120

160

200

上海 昆明 西安

2011 2012

Shanghai Kunming Xi’an

Number of transfer travelers (ten thousand)

Passenger ‐ BrandandCustomerServices

8

%ofsecondboardingoffrequentflyerincreasedsteadily

ContinuousgrowthofGroupclientsbusiness

Honoredbyvariousawardsincluding“GoldenTripodAward”,“GoldenBauhiniaAward”and“Top50MostValuableBrandsinChina”

Punctualityratewas77.82%,representing3ptshigherthantheindustryaverage

Furtherincreaseindirectsales

UpgradedandrenovatedhardwarefacilitiessuchasgroundVIPlounges

1574

1866

15.9%

17.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

1000

1200

1400

1600

1800

2000

2200

2011 2012

常旅客数量 常旅客二次乘机比Number of frequent flyer

% of second boarding of frequent flyer

3796

455555

91.5

0

20

40

60

80

100

2000

3000

4000

5000

2011 2012

集团客户数量 集团客户收入No. of corporateclients

Revenue from thecorporate clients

(RMB 100Million)

Passenger –FourCoreProducts

9

EasternTransfer

Toofferhigh–valuetravelers

comfortabletravellingexperience

EasternElite

Toplanpackagesproductsfor

internationallong‐haulpassengers

EasternPriority

Toprovidehigh‐endtravelerswith

full‐rangeandpersonalized

butler–styleservice

EasternFarReach

Toenhancequalityoftransferand

connectionserviceofCEA’shubs

Passenger ‐ AllianceandCooperation

10

Code‐sharingcooperation

SPAwithseveralforeignairlines

Integratedelectronicticketingagreementwithseveralforeignairlines

DevelopCode‐Sharingwithinalliance

Implementunifiedmanagementovercabinspacewithinalliance

Fourairlines’Cooperationprojectnamed“GreatChinaConnection”

Non‐SKYTEAMCooperation

JointlyoperaterouteswithAirFrance

SKYTEAMCooperation

Passenger ‐ Jetstar HongKong

11

ULN

HTA

KTMIXC

DEL

HYDBLR

CMB

MAA

CCU

DAC

CGP

MDL

RGN

KHH

TPE

VVOCTS

SDJYOK

KIXNGOFUK

OKA

CNX

BKK

PNH SGN

LXGHAN

ICN

MNLCGYCEBDVOBWN

BPN

SUBSRG

DPSBDO

JKT

SINMES

HKT

KUL

Hong Kong

ProgressofJetstar HongKongProject

InAugust2012,bothpartiessignedaformalshareholderscooperationagreement

InSeptember2012,Jetstar HongKongobtainedthebusinessregistrationcertificate

AttheendofJanuary2013,Jetstar HongKongpassedtheanti‐trustinvestigationconductedbyPRCMinistryofCommerce

Endeavourtocommenceoperationwithin2013

FleetisexpectedtoincreasefromtwoA320aircraftfortheinitialoperationstageto18aircraftin2015

Cargo ‐ DataHighlights

12

2012 YoYchange

Freighttrafficrevenue(RMBmillion) 8,025 -0.67%

AFTK(million) 7,416.25 3.69%

RFTK(million) 4,700.90 6.34%

Freightcarried(millionkg) 1,416.48 -1.84%

Freightloadfactor 63.39% 1.58pt

RAFTK(RMB) 1.08 -4.2%

RRFTK(RMB) 1.71 -6.6%

FreightcarriedandFreightloadfactor

RAFTK&RRFTK

1.13

1.83

1.08

1.71

0.20.50.81.11.41.7

RAFTK RRFTK

2011 2012

944

1465 1443 1416 50.45%

60.37% 61.81% 63.39%

20%

30%

40%

50%

60%

70%

0

400

800

1200

1600

2000

2009 2010 2011 2012

货邮载运量（千吨） 货邮载运率Freight load factorFreight carried(million kg)

Cargo – TransformationMeasures

13

ChinaEasternAirlines

Shareholdingstructureafterintegration

EasternLogistics

100%

Clearstrategicpositioning

Streamlineshareholdingstructureandintegratefreightresources

Fleetadjustment

Developnewbusinessandoptimizelogisticvaluechain

Express Warehouse Aviationtrading

Aviationfreight

transport

Logisticssolutions

ExpensesScaleandStructureAnalysis

14

Items(RMBMillion) 2012 YoYchange

Aircraftfuel 29,871.5 2.2%

Wages,salariesandbenefits 10,059.0 16.1%

Take‐offandlandingcharges 9,065.6 8.6%

Depreciationandamortization 7,556.9 8.5%

Office,administrationandotherexpenses 7,066.2 -6.6%

Aircraftmaintenance 4,432.7 0.6%

Aircraftoperatingleasefees 4,438.2 7.5%

Salesandmarketingexpenses 3,727.4 -0.3%

Foodandbeverages 2,031.4 0.5%

Others 4,495.8 6.5%

Totaloperatingexpenses 82,744.8 4.4%

CostControl

15

ATKandUnitCostofATK Measuresincluded:

Full‐scaleBudgetmanagement

Optimizeroutestructuretoreducefuelconsumption

Reducemaintenancecosts

Reducecontrollableexpenses

Reducefinancialcost

11642 12506

17887 18663 19721

4.88

3.08

3.84

4.25 4.20

3.29

2.10

2.64 2.68 2.68

1.00

2.00

3.00

4.00

5.00

6.00

0

5000

10000

15000

20000

25000

2008 2009 2010 2011 2012

ATK ATK单位成本 ATK单位成本（扣除燃油）Unit Cost of ATK

Unit Cost of ATK(net of fuel)

(Million ton-km) (RMB)

ProfitChangeAnalysis

16

(RMB 100Million)

SummaryofBalanceSheetandCashFlowStatement

17

Summaryofbalancesheet(RMBmillion)

31December2012

YoYchange

CurrentAssets 12,656.8 -7.7%

Non‐currentAssets 111,161.8 10.0%

TotalAssets 123,818.6 7.9%

CurrentLiabilities 48,623.0 12.1%

Non‐currentLiabilities 50,642.2 2.2%

TotalLiabilities 99,265.2 6.8%

Including:Interest‐bearingliabilities 67,594.1 9.0%

NetAssets 24,553.4 12.6%

NetAssetsattributabletoshareholder 22,925.8 13.9%

DebtRatio 80.17% -0.83pt

SummaryofCashFlowStatement(RMBmillion) 2012 YoY

change

Cashflowsfromoperatingactivities 12,617.4 -7.4%

Cashflowsfrominvestingactivities -11,789.1 -21.1%

Cashflowsfromfinancingactivities -2,174.3 -201.8%

(Decrease)/increaseincashandcashequivalents -1,346.0 -264.2%

Cashandcashequivalentsat31December2012 2,511.7 -34.9%

FleetScale(Endof2012)

18

No. Model Self–ownedandfinancialleasing

operatingleasing Total

PassengeraircraftWide–body

1 A340–600 5 52 A330s 18 10 283 A300‐600R 7 74 B767 6 1 7

Narrow–body5 A320s 137 41 1786 B757‐200 5 5 107 B737s 70 74 1448 CRJ–200 8 89 EMB–145LR 10 10

Totalnumberofpassengeraircraft 266 131 397Freighter

10 MD‐11F 3 311 A300‐600R 3 312 B747 2 3 513 B757–200F 2 214 B777F 6 6Totalnumberoffreighters 5 14 19

Totalnumberofpassengeraircraftandfreighters 271 145 416

FutureFleetPlan

19

Model2013 2014

Newdelivery Disposal Newdelivery Disposal

A320s 22 4 26

A330s 8 8

A340s 1

B737NG 26 5 24

B757 1

B777‐300ER 4Regionalaircraft 8Freighter 5 1Total 56 14 62 11

Note:Thedatashallbesubjecttoadjustmentbasedonthefuturemarketcondition

CapitalExpenditures

20

Items 2012 2013E

Expenditureonacquisitionofaircraft 15.2 26.3

Othercapitalexpenditures 3.4 4.4

Total 18.6 30.7

(RMBBillion)

Outlook‐ 2013OverallMarket

21

Domesticeconomyremainstable, andthesecondhalfyearwillbebetterthanthefirsthalf

Continuousgrowthindemandfordomesticpassengertransport,risingconsumptionpower andstrongdemandforoutboundtravel

Somesignsofrecoveryinfreightmarket

72–hoursvisa–freestaypolicywillbenefithubconstructioninShanghai

GrowthrateinCentralandWestChinamarketswillbehigherthanthatofEastChinamarkets

Normalizedeffectbroughtbyhigh‐speedrailway

DurationanddepthoftheimpactonJapanesemarketcausedbygeopoliticalfactorsisuncertain

EuropeanandUSmarket:Theimpactofthepoliticalandeconomyfactorsisuncertain

Outlook‐ Capacitystrategyin2013

22

Domesticmarket

CorehubatShanghai

RegionalhubsatXi’anandKunming,aswellasBeijingNanyuan airport

Increasethecapacityofpopulartouristroutes

Internationalandregionalmarkets

Launchnewroutesandincreasethefrequencyofcertainroutesforpeakseasons

AdjusttheJapaneseroutescapacityaccordingtomarketchanges

exploringpassengersourcesoftheSixthFreedomoftheAir

SeasonalincreaseintheSoutheastAsiamarket

FurtherdevelopingtheTaiwanmarket

Q&A

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