Qantas 2013 Annual Report Download - page 6

Chairman’s Report
Group Performance
The Qantas Group reported statutory
prot after tax of $6 million and
underlying prot before tax of $192
million* for the 2012/2013 nancial year —
a result that demonstrates the strength
of our portfolio and the progress we have
made with our strategy in a challenging
aviation market.
Three of our four major operating
segments were protable and we took
important steps to strengthen the Group
further. We maintained a clear market-
leading position with our domestic
business. Jetstar continued to build
in Asia through the launch of Jetstar
Japan. And our loyalty business reported
another record result.*
Having reached an inection point in
2011/2012, the turnaround of Qantas
International is on track.
Securing and launching a partnership
with Emirates was a superb achievement,
giving Qantas International a global
network via Dubai. It will deliver benets
not just for Qantas International but for
the Group as a whole, and Alan Joyce
and his team deserve great credit for
putting together such a signicant
agreement in a short period of time.
We also strengthened the Group’s
nancial position in 2012/2013, reducing
debt and capital expenditure*. Liquidity
at 30 June was $3.4 billion, comprising
$2.8 billion in cash and $630million in
undrawn debt facilities.
Crucially, the Group is becoming more
efcient and productive through the
ongoing Qantas Transformation program.
Looking Forward
The very competitive operating
conditions facing the Group are unlikely
to ease during 2013/2014. Productivity
and cost-competitiveness will be vital for
the Australian economy as a whole, and
Qantas in particular.
While we are making progress, there is
still a great deal of work to do. However,
the Group is well positioned for future
success. The actions we took during
2012/2013 are delivering results. And we
have a clear strategy to build long-term
shareholder value.
Qantas Board Changes
As we look to the future I’d like to pay
tribute to the late James Strong, a
singular gure in Qantas’ history. His
record as Qantas CEO, on the Qantas
Board and in many other elds of
business and culture was remarkable.
James will be greatly missed.
We always seek to ensure that we have
a plan in place to renew the Board and,
accordingly, Patricia Cross will step
down at the AGM in October. Patricia
has served on the Board for a total of
nine years, as well as chairing Qantas
Superannuation between 2002 and 2005.
She has brought great experience and
judgement as a Director and I thank her
for her signicant contribution.
I would also like to acknowledge
Corinne Namblard, who left the Board
inFebruary.
At the same time, we welcome two new
Directors, appointed in August 2013.
Maxine Brenner and Jacqueline Hey
are excellent additions to the Board
and I look forward to working with them.
Australia’s National Carrier
It’s important to remember the role
Qantas plays in Australian life. Many
nations no longer have a agship
carrier. Yet Qantas continues to support
Australian business — at home and
overseas — promote Australian tourism
and trade, work with charities and
provide resources for our government
and emergency services.
Our strategy for a strong, sustainable
and successful Qantas Group will ensure
that this unique role continues long into
the future.
The Group’s many achievements in
2012/2013 are a tribute to the skill and
dedication of our more than 30,000
employees. I thank them sincerely for
their contribution.
This result
demonstrates the
strength of our
portfolio and the
progress we have
made with our
strategy.
*For explanations of non-statutory measures see the Review of Operations section in this report.
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