Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — FY2021 Earnings Presentation
31 slides from Japan Airlines's earnings presentation, May 6, 2022
Slide 1: Financial Results MAR/2022 (FY2021)
JAPAN AIRLINES Co., Ltd. Financial Results MAR/2022（FY2021） Tokyo / Haneda Airport Sapporo / New Chitose Airport Osaka / Itami Airport Okinawa / Naha Airport Fukuoka Airport "JAL SMARTAIRPORT" Deployment Completed MAY 6, 2022 ©Japan Airlines, ALL rights reserved.
Slide 2: Agenda: Performance Overview, Forecast, Details, References
APEX APEX SKYTRAX SKYTRAX SKYTRAX 2021 WORLD CLASS Health Safety Powered Covid-19 Safety Rating SKYTRAX World Airline Star Rating by SimpliFlying Audit 5-Star 5-Star World's Best Economy Class Diamond COVID-19 Excellence Award Best Economy Class Airline Seat 1. Performance Overview For Mar/22 The 9t
Slide 3: Performance Overview for Mar/22
PERFORMANCE OVERVIEW FOR MAR/22 ✓ Steady recovery of both Revenue and EBIT while the effects of the spread of COVID-19 infection continues Revenue EBIT (1)/ Profit or Loss (2) （JPY Bn) （JPY Bn) EBIT Net Profit/Loss ▼703.2 Bn 1,600 200 1,385.9 (▼50.7%) 88.8 48.0 1,200 0 +201.4 Bn EBIT Margin(3) 800 (
Slide 4: CFO commentary on full-year results
➢ Hi there, I’m Kikuyama, CFO of Japan Airlines. I would like to present the full- year financial results for the fiscal year ending March 2022 and the forecast for the fiscal year ending March 2023. ➢ For the full year ending March 2022, the impact of the pandemic continued, resulting in the revenu
Slide 5: Forecast for Mar/23
1. Performance Overview For Mar/22 2. Forecast For Mar/23 3. Details of Financial Results for Mar/22 4. References ©Japan Airlines, ALL rights reserved. 4
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Slide 7: Mar/2023 Full-Year Performance Forecast
Mar/2023 Full-Year Performance Forecast ✓ The full-year consolidated earnings forecast is Revenue 1,390 billion yen, EBIT 80 billion yen and Net Profit 45 billion yen, based on steady recovery of passenger demand, also aiming for resumption of dividends by the end of this fiscal year ✓ Aiming for th
Slide 8: CFO commentary on full-year forecast
➢ On this page, I will explain the full-year consolidated earnings forecast for fiscal year 2022. ➢ This year, we plan to turn into the black for the first time in three terms, and we would like to make a strong first step toward achieving our goals of the Medium-Term Management Plan at the end of F
Slide 9: Premises of Performance Forecast for Mar/2023
Premises of Performance Forecast for Mar/2023 ✓ International passenger demand gradually recovers as easing of quarantine restrictions in each country progresses ✓ A full-scale recovery of domestic passenger demand is expected, to reach pre-pandemic levels from the second quarter ✓ The impact on pro
Slide 10: CFO commentary on forecast assumptions
➢ On this page, I will explain the assumptions in our forecast. ➢ First, I will explain the premise for passenger demand. Regarding international passengers, we expect a steady recovery toward the second half of this fiscal year, considering the progress in the easing of the quarantine process in ea
Slide 11: Details of Full-Year Performance Forecast For Mar/23
Details of Full-Year Performance Forecast For Mar/23 Changes in EBIT (Revenues / Expenses) ✓ Int’l and domestic passenger revenues increase significantly as demand recovers, and cargo remains strong, maintaining revenues as previous year. ✓ Actual Fixed Costs are kept below 500 billion yen, and cost
Slide 12: CFO commentary on forecast details
➢ On this page, I will explain the details of the forecast in comparison with the previous fiscal year. ➢ As for international passenger revenue, we see the recovery of the demand to-and-from Japan is expected in addition to the transit demand. The number of passengers is planned to increase to 324.
Slide 13: Details of Financial Results for Mar/22
1. Performance Overview For Mar/22 2. Forecast for Mar/23 3. Details of Financial Results for Mar/22 4. References ©Japan Airlines, ALL rights reserved. 8
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Slide 15: Details of Financial Results for Mar/22
Details of Financial Results for Mar/22 Consolidated Financial Results 12 month (April to March) 4th Quarter （JPY Bn) FY19 FY20 vs FY20 Q4 FY19 FY20 FY21 FY21 Q4 Diff. y/y Diff. y/y Diff. y/y Revenue 1,385.9 481.2 682.7 ▼ 703.2 ▼50.7% +201.4 +41.9% 184.2 +59.5 +47.8% Int'l Passenger 486.2 27.9 70.8
Slide 16: Changes in EBIT (Revenue/Expenses)
Details of Financial Results for Mar/22 Changes in EBIT (Revenue/Expenses) ASK y/y: +55.4% + indicates profit increase (revenue increase, cost decrease) RPK y/y: +59.3% ▼indicates profit decrease (revenue decrease, cost increase) (JPY Bn) ＋158.8JPY Bn 22.0 billion yen of Personnel cost reduction thr
Slide 17: International Passenger Operations (Full Service)
Details of Financial Results for Mar/22 International Passenger Operations (Full Service) ✓ Progress in the easing of the quarantine process in each country resulted in the gradual recovery of demand between Asia and North America and to and from Japan (vs Pre-Pandemic(1) ) Int'l PAX Int'l Capacity
Slide 18: CFO commentary on international passenger results
➢ On the following pages, I will explain the major points on the results for the fiscal year ending March 2022. ➢ International passenger demand has been sluggish since the Pandemic, but as quarantine easing progressed, it recovered to 16% of the pre-pandemic level. ➢ I am confident that we have ent
Slide 19: Domestic Passenger Operations (Full Service)
Details of Financial Results for Mar/22 Domestic Passenger Operations (Full Service) ✓ Demand is steadily recovering from the end of the fiscal year due to the decrease in number of infected people and the progress of vaccination, while a rise and fall of demand was apparent due to the declaration o
Slide 20: CFO commentary on domestic passenger results
➢ This page shows the full-year results of the domestic passenger operations. ➢ While the demand for domestic passengers repeated to rise and fall throughout the year, it recovered to over 50% of the pre-pandemic level in March. ➢ The performance during the Japanese holiday week in May has also reco
Slide 21: Cargo and Mail
Details of Financial Results for Mar/22 Cargo and Mail ✓ International cargo showed significant increase in sales by maximum use of our passenger aircraft and other company's freighters to meet the strong demand ✓ Domestic cargo secures stable income due to strong demand for e-commerce, etc., despit
Slide 22: CFO commentary on cargo and mail
➢ This page shows the full-year results of our Cargo and Mail business. ➢ In particular, the demand and the unit price of international cargo have been favorable, due to factors such as a shift from marine transportation throughout the year. We expect that this situation will continue for the time b
Slide 23: Major Operating Expense Items
Details of Financial Results for Mar/22 Major Operating Expense Items ✓ Actual fixed costs were reduced by ▼34.3 billion yen from the initial estimate of 500 billion yen to 465.7 billion yen ✓ Flexible supply adjustments in response to declining demand enabled the control of the increase in variable
Slide 24: CFO commentary on cost management
➢ This page describes our cost management. ➢ Our efforts to reduce costs have been steadily showing results, and the actual fixed cost is 465.7 billion yen, which is a reduction of 34.3 billion yen from the initial target of 500 billion yen. ©Japan Airlines, ALL rights reserved. 14-S
Slide 25: Consolidated Statement of Financial Position and Cash Flow
Details of Financial Results for Mar/22 Summary of Consolidated Statement of Financial Position and Cash Flow ✓ Equity ratio is 41.1% for credit evaluation basis by Hybrid Finance Net D/E Ratio is 0.3x, keeping a healthy level Consolidated Balance Sheet End of FY20 End of FY21 Diff. （JPY Bn) Total A
Slide 26: CFO commentary on balance sheet and dividend forecast
➢ This page shows the balance sheet and cash flow. ➢ Despite the difficult performance, both Equity Ratio in credit rating evaluation basis and the Net D/E Ratio have been maintained at healthy levels. ➢ Page 17 and after are reference materials. ➢ Finally, I would like to explain our dividend forec
Slide 27: References
1. Performance Overview For Mar/22 2. Forecast For Mar/23 3. Details of Financial Results for Mar/22 4. References ©Japan Airlines, ALL rights reserved. 16
Slide 28: Operation Performance by Geographic Segment
[Reference] (1) Operation Performance by Geographic Segment (Full Service) Passenger Revenue Revenue Passenger Carried 12 Months 4th Quarter 12 Months 4th Quarter (%) (‘000) FY21 vs FY19 vs FY20 FY21Q4 vs FY20Q4 FY21 vs FY19 vs FY20 FY21Q4 vs FY20Q4 Americas 46% ▼77.0% +234.0% 42% +141.5% Americas 3
Slide 29: Fleet List
[Reference] Fleet List End of Mar 2021 End of Mar 2022 Diff. Owned Leased Total 1 Total 2 Owned Leased Total 1 Total 2 Total2 of end Retired Retired of Mar 2022 AircraftExcluded AircraftExcluded and 2021 Airbus A350-900 4 4 8 8 11 4 15 15 +7 Boeing 777-300ER 13 0 (1) 13 13 13 0 (1) 13 13 - Boeing 77
Slide 30: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations Japan Airlines ©Japan Airlines, ALL rights reserved. 19
Slide 31: Disclaimer
Disclaimer This content contains descriptions of the future expectations, outlooks, objectives and plans etc. Of Japan Airlines Co., Ltd. (hereafter "the company") and related Group companies (hereafter "the Group"). These are based on information available at the time when these materials were crea