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Cathay Pacific Airways Limited
Stock Code: 00293
Annual Report 2012

Table of contents

  • Page 1
    Cathay Pacific Airways Limited Stock Code: 00293 Annual Report 2012

  • Page 2
    ...Report Corporate Governance Report 50 52 53 54 55 56 57 92 Independent Auditor's Report Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Company Statement of Financial Position Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity...

  • Page 3
    ...Cathay Pacific is listed on The Stock Exchange of Hong Kong Limited, as are its substantial shareholders Swire Pacific Limited ("Swire Pacific") and 94 98 103 104 Principal Accounting Policies Statistics Glossary Corporate and Shareholder Information Air China. Cathay Pacific is a founding member...

  • Page 4
    ... and Operating Highlights Group Financial Statistics 2012 2011 Change Results Turnover Profit attributable to the owners of Cathay Pacific Earnings per share Dividend per share Profit margin HK$ million HK$ million HK cents HK$ % 99,376 916 23.3 0.08 0.9 98,406 5,501 139.8 0.52 5.6 +1.0% -83...

  • Page 5
    ... we deal with our customers. We continued with our major investments in new aircraft and new products. We started to operate our own cargo terminal at Hong Kong International Airport in February 2013. This will bring significant benefits to our own cargo business and to Hong Kong as a centre for air...

  • Page 6
    ... by providing high quality products and services. This remains a key focus of the Cathay Pacific Group. To this end, Cathay Pacific has introduced a new premium economy class, a new long-haul economy class seat and a new regional business class seat. Since its introduction in April 2012, premium...

  • Page 7
    ... to Hong Kong and help to reinforce Hong Kong's standing as a leading international aviation centre. Award winning products and services • Our new long-haul business class seats (which were first introduced in March 2011) will be fitted in all our Boeing 777-300ER and long-haul Airbus A330-300...

  • Page 8
    ...2012 TTG Travel Awards. • Cathay Pacific's travel reward programme, Asia Miles, was named Best Frequent Flyer Programme for the eighth consecutive year at the Business Traveller Asia-Pacific Awards. • Flights were added on the Bangkok, Kuala Lumpur, Nagoya, Penang, Singapore and Taipei routes...

  • Page 9
    ...cargo joint venture with Air China was delivered in July 2012 and the final converted freighter was sold to Air China Cargo in March 2013. • Two more flight simulators - for the Boeing 777-300ER aircraft and the Boeing 747-8F freighter - were installed in the Cathay Pacific Flight Training Centre...

  • Page 10
    2012 in Review • Cathay Pacific Cargo has started a programme to replace its existing cargo booking system with a new system. The programme is intended to be completed in 2015. • In January 2012, we introduced mobile boarding passes for flights from Hong Kong. Passengers can check in online ...

  • Page 11
    ...community • In May 2012, Cathay Pacific received the 10 Consecutive Years Caring Company Logo 2002-2012 from the Hong Kong Council of Social Service. The award recognises the airline's commitment to caring for the well-being of the community, its employees and the environment. Annual Report 2012...

  • Page 12
    ... China and to help to develop economic opportunities for the people there. Commitment to staff • At the end of 2012, the Cathay Pacific Group employed some 29,900 people worldwide. More than 22,800 of these staff are based in Hong Kong. • The Cathay Pacific Group continued to recruit new...

  • Page 13
    2012 in Review Fleet profile* Number as at 31st December 2012 Leased Aircraft type Owned Finance Operating Total '13 Firm orders '14 '15 and beyond Total '13 Expiry of operating leases '14 '15 '16 '17 '18 and beyond Purchase rights Aircraft operated by Cathay Pacific: A330-300 A340-300 A350-900 ...

  • Page 14
    ... from Cathay Pacific and one wetleased Boeing 727 freighter. In January 2013, the wetleased Boeing 727 freighter was replaced by an Airbus A300-600F freighter. • During 2012 Air Hong Kong operated six flights per week services to each of Bangkok, Nagoya, Osaka, Seoul, Shanghai, Singapore, Taipei...

  • Page 15
    ... China. • The Group recorded an increased loss from Air China Cargo's results in 2012. This was mainly due to weak demand in the air cargo markets. • At 31st December 2012, Air China Cargo had a fleet of 11 freighters. It operates scheduled freighter services to nine countries and regions...

  • Page 16
    Our Investments The Cathay Pacific Group has made big investments in its people to ensure the highest levels of professionalism. As at 31st December 2012, we have 92 new, fuel-efficient aircraft on order for delivery up to 2020.

  • Page 17
    The HK$5.9 billion Cathay Pacific Cargo Terminal will boost both the capacity and efficiency of Hong Kong as a key air cargo hub.

  • Page 18
    ... number of passengers travelling in the premium classes and premium class yields were affected by economic weakness in major economies and travel restrictions imposed by corporations. High fuel prices significantly affected the profitability of our passenger services, particular on long-haul routes...

  • Page 19
    ... We increased Cathay Pacific frequencies on services to Bangkok, Ho Chi Minh City, Kuala Lumpur, Penang and Singapore. New overnight flights to and from Kuala Lumpur and Singapore helped to increase the number of passengers transiting through Hong Kong. • Business in the premium classes weakened...

  • Page 20
    ... Economy class demand was strong on all United States routes throughout the year. Sales originating in Canada and the United States for flights to and beyond Hong Kong were encouraging. However, the Canada routes were affected by strong competition. • Premium class revenues on the New York route...

  • Page 21
    ... from our two key markets, Hong Kong and Mainland China, was well below expectations, although there were short-term upturns in March and in the last quarter reflecting launches of new consumer electronics products. Capacity was adjusted in line with demand. We opened new routes where demand was...

  • Page 22
    ... other products from Mainland China. However, there was no sustained cargo peak in 2012, rather a short two-month period of improved demand. • We managed capacity in line with demand, reducing scheduled freighter services as necessary. Where possible, we operated extra sectors and charter flights...

  • Page 23
    ... to process and ship cargo. Asia Miles • Asia Miles is the award-winning travel reward programme for Cathay Pacific and Dragonair. It has more than four million members worldwide. • In 2012, for the eighth consecutive year, Asia Miles was named Best Frequent Flyer Programme at the Business...

  • Page 24
    Our New Products and Services

  • Page 25
    ... function on Cathay Pacific and Dragonair short-haul flights. We launched a Premium Economy Class cabin in 2012, while our new long-haul Business Class continued to win acclaim. Our flagship lounge in Hong Kong, The Wing, has been completely refurbished, offering new levels of pre-flight comfort.

  • Page 26
    Financial Review The Cathay Pacific Group reported an attributable profit of HK$916 million in 2012 compared with a profit of HK$5,501 million in 2011. The Group's core business was adversely affected by the high price of jet fuel, pressure on passenger yields and weak air cargo demand. Economic ...

  • Page 27
    ... percentage points to 80.1%. Available seat kilometres increased by 2.6%. • Passenger yield increased by 1.2% to HK¢67.3. • First and business class revenues increased by 0.8% and the premium class load factor increased from 66.9% to 67.3%. Premium economy and economy class revenues increased...

  • Page 28
    Financial Review Operating expenses Group 2012 HK$M 2011 HK$M Change Cathay Pacific and Dragonair 2012 HK$M 2011 HK$M Change Staff Inflight service and passenger expenses Landing, parking and route expenses Fuel, net of hedging gains Aircraft maintenance Aircraft depreciation and operating leases ...

  • Page 29
    Financial Review Cathay Pacific and Dragonair operating results analysis 2012 HK$M 2011 HK$M Airlines' profit before taxation Tax charge Airlines' (loss)/profit after taxation Share of profits from subsidiaries and associates Profit attributable to the owners of Cathay Pacific The change in the ...

  • Page 30
    ... Dividends per share decreased from HK$0.52 to HK$0.08. Assets • Total assets as at 31st December 2012 were HK$155,010 million. • During the year, additions to fixed assets were HK$20,177 million, comprising HK$18,289 million for aircraft and related equipment, HK$1,393 million for buildings...

  • Page 31
    ...in 2012 from HK$43,335 million in 2011. • Borrowings are mainly denominated in United States dollars, Hong Kong dollars, Japanese yen and Euros, and are fully repayable by 2024 with 68.0% currently at fixed rates of interest after taking into account derivative transactions. • Liquid funds, 67...

  • Page 32
    Our Contributions

  • Page 33
    ... programme has raised more than HK$120 million since the programme's launch in 1991. Staff from CX Volunteers contributed more than 3,300 hours of voluntary service in 2012. The signature "I Can Fly" programme has helped more than 3,000 young people build their aviation knowledge and community...

  • Page 34
    ...has been Finance Director of the Company since November 2011. He is also a Director of Hong Kong Dragon Airlines Limited. He was previously Deputy Finance Director of Swire Pacific Limited. He joined the Swire group in 1995 and has worked with the group in Hong Kong, the United States, Singapore and...

  • Page 35
    ... Corporation Limited, a Group Managing Director and a member of the Group Management Board of HSBC Holdings plc and a Non-Executive Director of Hang Seng Bank Limited and Bank of Communications Co., Ltd. He is also President of the Hong Kong Institute of Bankers and a member of the Exchange Fund...

  • Page 36
    ... December 2012 which are on pages 52 to 97. Company's share registrars, Computershare Hong Kong Investor Services Limited, 17th Floor, Hopewell Centre, 183 Queen's Road East, Hong Kong, for registration not later than 4:30 p.m. on Thursday, 2nd May 2013. Activities Cathay Pacific Airways Limited...

  • Page 37
    ...than three months expiring on any 31st December. Swire is the holding company of Swire Pacific which owns approximately 45% of the issued capital of the Company and JSSHK, a wholly owned subsidiary of Swire, is therefore Annual Report 2012 Major transactions Cathay Pacific Aircraft Services Limited...

  • Page 38
    ... ("Air China Group") on the other hand arising from joint venture arrangements for the operation of passenger air transportation, code sharing arrangements, interline arrangements, aircraft leasing, frequent flyer programmes, the provision of airline catering, ground support and engineering services...

  • Page 39
    ... non-executive Directors during the year totalled HK$3.0 million; they received no other emoluments from the Company or any of its subsidiaries. Connected transactions Hong Kong Airport Services Limited ("HAS"), a wholly owned subsidiary of the Company, entered into a joint venture agreement...

  • Page 40
    ...businesses of the Company as it operates airline services to certain destinations which are also served by the Company. Capacity No. of shares Ian Shiu Personal 1,000 0.00003 Other than as stated above, no Director or chief executive of Cathay Pacific Airways Limited had any interest or short...

  • Page 41
    ...high standards of ethics are maintained The Company complied with all the code provisions set out in the CG Code contained in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") throughout the year covered by the annual report...

  • Page 42
    ...the businesses and markets in which the Group operates, providing informed insight and responses to management The Company has been granted by the Stock Exchange a waiver from strict compliance with Rule 3.10A of the Listing Rules, which requires that an issuer must appoint Independent Non-Executive...

  • Page 43
    ... by Directors in meetings. A typical Board meeting would consist of: • a review of a report by the Chief Executive on the results since the last meeting and an explanation of changes in the business environment and their impact on budgets and the longer-term plan • the raising of new...

  • Page 44
    ... Non-Executive Directors" issued by the Hong Kong Institute of Directors. The Company makes available continuous professional development for all Directors at the expense of the Company so as to develop and refresh their knowledge and skills. Directors' and Officers' Insurance The Company has...

  • Page 45
    ... external parties such as customers, those with whom the Group does business, trade associations and service providers. Directors' interests as at 31st December 2012 in the shares of the Company and its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance...

  • Page 46
    ... levels, including Executive Directors and Executive Officers, are seconded to the Company. These staff report to and take instructions from the Board of the Company but remain employees of the Swire group. In order to be able to attract and retain staff of suitable calibre, the Swire group provides...

  • Page 47
    Corporate Governance Report Accountability and Audit Financial Reporting The Board acknowledges its responsibility for: • the proper stewardship of the Company's affairs, to ensure the integrity of financial information • preparing annual and interim accounts and other related information ...

  • Page 48
    ... Code • the Group's risk management processes • the approval of the 2013 annual Internal Audit programme and review of progress on the 2012 programme • periodic reports from Internal Audit and progress in resolving any matters identified in them • significant accounting and audit issues...

  • Page 49
    ... the Department conducts other special reviews as required. The Group Internal Audit Manager has direct access to the Audit Committee. Audit reports are sent to the Chief Operating Officer, the Finance Director, external auditors and the relevant management of audited departments. A summary of major...

  • Page 50
    ... the Company. The principal methods used to communicate with shareholders include the following: • The Finance Director makes himself available for meetings with major shareholders, investors and analysts over two-month periods immediately after the announcement of the interim and annual results...

  • Page 51
    ... meeting must be stated in the related requisition deposited at the Company's registered office. Detailed requirements and procedures are set out in the Corporate Governance Section of the Company's website. Other information for shareholders Key shareholder dates for 2013 are set out on page 104...

  • Page 52
    ... with Hong Kong Standards on Auditing issued by the Hong Kong Institute of Certified Public Accountants. Those standards require that To the shareholders of Cathay Pacific Airways Limited (Incorporated in Hong Kong with limited liability) we comply with ethical requirements and plan and perform the...

  • Page 53
    ... China Cargo and the Group's share of the results of these associates as included in the Group's consolidated financial statements as at and for the year ended 31st December 2012. Our independent auditor's report on the Group's consolidated financial statements for the year ended 31st December 2011...

  • Page 54
    ...for the year ended 31st December 2012 2012 HK$M 2011 HK$M 2012 US$M 2011 US$M Note Turnover Passenger services Cargo services Catering, recoveries and other services Total turnover Expenses Staff Inflight service and passenger expenses Landing, parking and route expenses Fuel, net of hedging gains...

  • Page 55
    ... of Financial Position at 31st December 2012 2012 HK$M 2011 HK$M 2012 US$M 2011 US$M Note ASSETS AND LIABILITIES Non-current assets and liabilities Fixed assets Intangible assets Investments in associates Other long-term receivables and investments Long-term liabilities Related pledged security...

  • Page 56
    Company Statement of Financial Position at 31st December 2012 2012 HK$M 2011 HK$M 2012 US$M 2011 US$M Note ASSETS AND LIABILITIES Non-current assets and liabilities Fixed assets Intangible assets Investments in subsidiaries Investments in associates Other long-term receivables and investments Long...

  • Page 57
    ... fixed and intangible assets Dividends received from associates Purchases of shares in associates Loan to associates Net cash outflow from investing activities Financing activities New financing Net cash benefit from financing arrangements Loan and finance lease repayments Security deposits placed...

  • Page 58
    ... Statement of Changes in Equity for the year ended 31st December 2012 Noncontrolling interests Attributable to the owners of Cathay Pacific Non-distributable Investment Share revaluation premium reserve HK$M HK$M Cash flow hedge reserve HK$M Capital redemption reserve and others HK$M Total equity...

  • Page 59
    ...-airline business segment includes mainly catering, ground handling and aircraft ramp handling services. The unallocated results represent the Group's share of profits of associates. The major revenue earning asset is the aircraft fleet which is used both for passenger and cargo services. Management...

  • Page 60
    ... 2. Segment information (continued) (b) Geographical information 2012 HK$M 2011 HK$M Turnover by origin of sale: North Asia - Hong Kong and Mainland China - Japan, Korea and Taiwan India, Middle East, Pakistan and Sri Lanka Southeast Asia Southwest Pacific and South Africa Europe North America...

  • Page 61
    ... 272 (53) Hong Kong profits tax is calculated at 16.5% (2011: 16.5%) on the estimated assessable profits for the year. Overseas tax is calculated at rates of tax applicable in countries in which the Group is assessable for tax. Tax provisions are reviewed regularly to take into account changes in...

  • Page 62
    ...2012 HK$M 2011 HK$M Cash flow hedges - recognised during the year - transferred to profit and loss - transferred to intangible assets (note 11) - deferred tax recognised Revaluation of available-for-sale financial assets - recognised during the year Share of other comprehensive income of associates...

  • Page 63
    ... Statement of Financial Position Aircraft and related equipment Owned HK$M Leased HK$M Other equipment Owned HK$M Leased HK$M Buildings Owned HK$M Under construction HK$M Total HK$M Group Cost At 1st January 2012 Exchange differences Additions Disposals Reclassification to assets held for sale...

  • Page 64
    ...10. Fixed assets (continued) Aircraft and related equipment Owned HK$M Leased HK$M Other equipment Owned HK$M Leased HK$M Buildings Owned HK$M Total HK$M Company Cost At 1st January 2012 Additions Disposals Reclassification to assets held for sale Transfers At 31st December 2012 At 1st January 2011...

  • Page 65
    ...Group and HK$236 million (2011: HK$271 million) for the Company. No depreciation is provided on these advance payments. (d) Security, including charges over the assets concerned and relevant insurance policies, is provided to the leasing companies or other parties that provide the underlying finance...

  • Page 66
    ... to past performance and expectations for market development, approved by management. Cash flows beyond the five-year period are extrapolated with an estimated general annual growth rate of 1.0% to 3.0% (2011: 1.0%) which does not exceed the long-term average growth rate for the business in which...

  • Page 67
    ... to the Accounts Statement of Financial Position 13. Associates Group 2012 HK$M 2011 HK$M Company 2012 HK$M 2011 HK$M Hong Kong listed shares at cost (Market value: HK$16,526 million, 2011: HK$14,457 million) Unlisted shares at cost Share of net assets - listed in Hong Kong - unlisted Goodwill...

  • Page 68
    ...(a) Long-term loans Group 2012 HK$M 2011 HK$M Company 2012 HK$M 2011 HK$M Bank loans - secured - unsecured Other loans - unsecured Amount due within one year included under current liabilities Repayable as follows: Bank loans - within one year - after one year but within two years - after two years...

  • Page 69
    ...$3,973 million (2011: HK$4,156 million) respectively. 16. Other long-term payables Group 2012 HK$M 2011 HK$M Company 2012 HK$M 2011 HK$M Deferred creditors Derivative financial liabilities - long-term portion 1,079 1,143 2,222 906 1,706 2,612 797 1,096 1,893 392 1,641 2,033 Annual Report 2012...

  • Page 70
    ... 2012. 2012 HK$M 2011 HK$M Net expenses recognised in the Group's profit and loss: Current service cost Interest cost Expected return on plan assets Actuarial losses recognised Total included in staff costs Actual return on plan assets 388 299 (509) 53 231 887 349 302 (550) - 101 (412) 68 Cathay...

  • Page 71
    ... in fair value of plan assets comprise: At 1st January Movements for the year - expected return on plan assets - employee contributions - employer contributions - benefits paid - actuarial gains/(losses) At 31st December 509 7 302 (400) 377 8,119 Group 2012 HK$M 2011 HK$M 7,324 8,077 550 9 175...

  • Page 72
    ... 2012 and HK$25,000 from 1st June 2012). Staff may elect to contribute more than the minimum as a voluntary contribution. Contributions to defined contribution retirement schemes charged to the Group's profit and loss were HK$951 million (2011: HK$864 million). 70 Cathay Pacific Airways Limited

  • Page 73
    ... Financial Position 18. Deferred taxation Group 2012 HK$M 2011 HK$M Company 2012 HK$M 2011 HK$M Deferred tax assets: - provisions - tax losses - cash flow hedges - customer loyalty programmes Deferred tax liabilities: - retirement benefits - accelerated tax depreciation - investments in associates...

  • Page 74
    ... December 2012, total derivative financial assets of the Group and the Company which did not qualify for hedge accounting amounted to HK$1,349 million (2011: HK$1,105 million) and HK$1,349 million (2011: HK$1,105 million) respectively. Group 2012 HK$M 2011 HK$M Company 2012 HK$M 2011 HK$M Analysis...

  • Page 75
    ... year ended 31st December 2012 (2011: nil). 21. Liquid funds Group 2012 HK$M 2011 HK$M Company 2012 HK$M 2011 HK$M Short-term deposits and bank balances (note 26) Short-term deposits maturing beyond three months when placed Funds with investment managers - debt securities listed outside Hong Kong...

  • Page 76
    ...) 23 42,565 Retained profit HK$M Share premium HK$M Investment revaluation reserve HK$M Cash flow hedge reserve HK$M Total HK$M Company At 1st January 2012 Profit for the year Other comprehensive income Total comprehensive income for the year 2011 second interim dividends 27,779 2,190 - 2,190...

  • Page 77
    ... million (2011: HK$2,190 million) and share of associate's other negative reserve of HK$680 million (2011: HK$763 million). The cash flow hedge reserve relates to the effective portion of the cumulative net change in fair values of hedging instruments and exchange differences on borrowings and lease...

  • Page 78
    Notes to the Accounts Statement of Cash Flows 25. Reconciliation of operating profit to cash generated from operations 2012 HK$M 2011 HK$M Operating profit Depreciation of fixed assets Amortisation of intangible assets Provision for impairment of assets held for sale Provision for impairment of ...

  • Page 79
    ...Directors receive fees as members of the Board and its committees. Executive Directors receive salaries. For Directors employed by the Swire group, the remuneration disclosed represents the amount charged to the Company. Bonus is related to services for 2011 and was paid in 2012. Annual Report 2012...

  • Page 80
    ... and Employees 27. Directors' and executive officers' remuneration (continued) (b) Executive officers' remuneration disclosed as recommended by the Listing Rules is as follows: Cash Contributions to retirement schemes HK$'000 Non-cash Bonus paid into retirement schemes HK$'000 Basic salary HK$'000...

  • Page 81
    ... of individuals, including those who have retired or resigned during the year, in each employment category whose total remuneration for the year fell into the following ranges: 2012 HK$'000 Director Flight staff Other staff Director 2011 Flight staff Other staff 0 - 1,001 - 1,501 - 2,001 - 2,501...

  • Page 82
    ... and Air China group on the other hand arising from joint venture arrangements for the operation of passenger air transportation, code sharing arrangements, interline arrangements, aircraft leasing, frequent flyer programmes, the provision of airline catering, ground support and engineering services...

  • Page 83
    ... and in December 2012, the Federal Court of Australia, pursuant to such agreement, entered its judgment against the Company for A$11.25 million and costs of A$0.5 million (total equivalent to HK$94.6 million at the exchange rate current as of the date of payment). Cathay Pacific has satisfied the...

  • Page 84
    ... business, the Group is exposed to fluctuations in foreign exchange rates, interest rates and jet fuel prices. These exposures are managed, sometimes with the use of derivative financial instruments, by the Treasury Department of Cathay Pacific in accordance with the policies approved by the Finance...

  • Page 85
    ...2012 After one year but within two years HK$M After two years but within five years HK$M Within one year HK$M After five years HK$M Total HK$M Group Bank and other loans Obligations under finance leases Other long-term payables Trade and other payables Derivative financial liabilities, net Total...

  • Page 86
    ... under finance leases Other long-term payables Trade and other payables Derivative financial liabilities, net Total (c) Market risk (i) Foreign currency risk The Group's revenue streams are denominated in a number of foreign currencies resulting in exposure to foreign exchange rate fluctuations...

  • Page 87
    ...to the Accounts Supplementary Information 31. Financial risk management (continued) At the reporting date, the exposure to foreign currency risk was as follows: 2012 USD HK$M EUR HK$M TWD HK$M SGD HK$M RMB HK$M JPY HK$M Group Trade debtors, other receivables and prepayments Liquid funds Long-term...

  • Page 88
    ..., in particular interest rates, remain constant. The analysis has been performed on the same basis as for 2011. 2012 Net increase/ (decrease) in profit and loss HK$M Net increase/ (decrease) in other equity components HK$M United States dollars Euros New Taiwan dollars Singapore dollars Renminbi...

  • Page 89
    ...-bearing financial instruments was as below: Group 2012 HK$M 2011 HK$M Company 2012 HK$M 2011 HK$M Fixed rate instruments Loans receivable Long-term loans Obligations under finance leases Interest rate and currency swaps Net exposure 722 (2,899) (10,277) (27,239) (39,693) Group 2012 HK$M 2011 HK...

  • Page 90
    ... as at 31st December 2012 were as follows: 2012 HK$M 2011 HK$M Foreign currency risk - long-term liabilities (natural hedge) - cross currency swaps - foreign currency forward contracts - foreign exchange swap Interest rate risk - interest rate swaps Fuel price risk - fuel options Others - carbon...

  • Page 91
    ... differ from their carrying amounts shown in the statement of financial position: 2012 Carrying amount HK$M Fair value HK$M 2011 Carrying amount HK$M Fair value HK$M Group Loans receivable Long-term loans Obligations under finance leases Pledged security deposits 722 (24,637) (38,874) 3,965...

  • Page 92
    ... 2 HK$M 2011 Level 3 HK$M 2011 Total HK$M Assets Investments at fair value - listed - unlisted Liquid funds - funds with investment managers - other liquid investments Derivative financial assets - - - 136 Liabilities Obligations under finance leases designated as at fair value through profit or...

  • Page 93
    ... standard on both the results and the financial position of the Group. 34. Event after the reporting period In March 2013, the Group entered into a trade-in deal with The Boeing Company to dispose of four Boeing 747-400BCF converted freighters which were taken out of service in 2012 and early 2013...

  • Page 94
    ... Limited Cathay Pacific MTN Financing Limited Cathay Pacific Services Limited Global Logistics System (H.K.) Company Limited Guangzhou Guo Tai Information Processing Company Limited Hong Kong Airport Services Limited Hong Kong Aviation and Airport Services Limited Hong Kong Dragon Airlines Limited...

  • Page 95
    ... issued capital owned Principal activities Air China Cargo Co., Ltd. Air China Limited Cebu Pacific Catering Services Inc. Ground Support Engineering Limited People's Republic of China People's Republic of China Philippines Hong Kong Cargo carriage service Airline Airline catering Airport ground...

  • Page 96
    ... of the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). The measurement basis used is historical cost modified by the use of fair value for certain financial assets and liabilities as explained in accounting policies...

  • Page 97
    ... to ten years. Freighter aircraft 8. Financial assets Other long-term receivables, bank and security deposits, trade and other short-term receivables are categorised as loans and receivables and are stated at amortised cost less impairment loss. Where long-term investments held by the Group are...

  • Page 98
    ... purchase or sale of the assets occurs. interest rates or jet fuel prices, any fair value change is accounted for as follows: (a) the portion of the fair value change that is determined to be an effective cash flow hedge is recognised directly in equity via the statement of changes in equity and is...

  • Page 99
    ...payments. 18. Frequent-flyer programme The Company operates a frequent-flyer programme called Asia Miles (the "programme"). As members accumulate miles by travelling on Cathay Pacific or Dragonair flights, part of the revenue from the initial sales transaction equal to the programme awards at their...

  • Page 100
    ...funds and bank overdrafts) Other long-term payables Deferred taxation Net assets Financed by: Funds attributable to the owners of Cathay Pacific Non-controlling interests Total equity Per share Shareholders' funds EBITDA Earnings/(loss) Dividend Ratios Profit/(loss) margin Return on capital employed...

  • Page 101
    ... 7.0 8.7 11.9 5.1 1.01 0.62 (10.0) (11.8) (73.7) 3.7 1.10 0.69 9.3 12.6 2.1 14.2 0.74 0.30 6.7 8.9 1.2 15.1 0.70 0.36 6.5 8.8 2.0 17.1 0.64 0.26 10.3 11.8 2.0 14.6 0.69 0.34 4.0 4.7 0.8 7.2 0.85 0.36 Annual Report 2012 99

  • Page 102
    ...Excess baggage carried Kilometres flown Block hours Aircraft departures Length of scheduled routes network Destinations at year end Staff number at year end ATK per staff On-time performance* Departure (within 15 minutes) Average aircraft utilisation* A320-200 A321-200 A330-300 A340-300 A340-600 747...

  • Page 103
    ... - 102 10 6 16 1 3 1 37 26 15 3 22 7 6 1 - - 5 11 - 96 11 6 13 1 3 - 34 23 15 3 21 7 5 - - - 5 10 - 89 10 6 10 1 3 - 30 23 15 3 19 6 5 - - - 5 9 - 85 8 6 9 - 3 - 26 Annual Report 2012 101

  • Page 104
    ...2004 2003 Productivity* Cost per ATK (with fuel) ATK per HK$'000 staff cost Aircraft utilisation Share prices High Low Year-end Price ratios (Note) Price/earnings Market capitalisation/ funds attributable to the owners of Cathay Pacific Price/cash flows Times HK$ Unit Hours per day HK$ 3.64 1,805...

  • Page 105
    ... of Cathay Pacific Shareholders' funds = per share Total issued and fully paid shares at end of the year Operating profit and share of profits of associates less taxation Average of total equity and net borrowings Profit/(loss) attributable to the owners of Cathay Pacific Dividends Cash generated...

  • Page 106
    ... 2012 Annual report available to shareholders Annual General Meeting Stock codes Hong Kong Stock Exchange ADR 00293 CPCAY Six months ending 30th June 2013 Interim results announcement Interim dividend payable August 2013 October 2013 5th April 2013 8th May 2013 104 Cathay Pacific Airways Limited

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    www.cathaypacific.com