Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — FY2018 Earnings Presentation
31 slides from Japan Airlines's earnings presentation, Apr 26, 2019
Slide 1: Financial Results Mar/2019 (FY2018)
JAPAN AIRLINES Co., Ltd. Financial Results MAR/2019（FY2018） April 26th, 2019
Slide 2: Today's Topics
Today’s Topics P.1 P.2 P.4 P.15 P.23 ※The Award for Passenger Service System Project (Note) Regarding figures in tables of this material, amounts are rounded down to the nearest hundred million yen, and the second decimal point in ratios is rounded off to one decimal point.
Slide 3: Overview of Financial Results for Mar/19
Overview of Financial Results for Mar/19 Resulted in an increase both in revenue and net profit compared to the previous year. Aim to achieve year-over-year growth in both revenue and profit in FY2019. Operating profit・Net profit (1) Operating Revenue Operating profit margin・ROIC (2) Operating O
Slide 4: Shareholder returns①
Shareholder returns① Shareholder Return Policy Focuses on continuity, stability and predictability (1) Total Return Ratio＝ From FY2019, approximately 35% will be a benchmark Dividends for payout ratio Total dividends + Total share repurchases Dividends per share will remain unchanged in spite Ne
Slide 5: Shareholder returns②
Shareholder returns② Shareholder Return Result and Forecast Total Return History (FY2012～FY2019) FY2017 FY2018 FY2019 (Result) (Result) (Forecast) （JPY Bn） 250.0 60% Dividends per share 110 110 110 47.7% 49.2% (JPY) 44.5% 200.0 50% 171.6 174.4 Interim Dividend 52.5 55 55 166.2 164.1 150.8 149.0 150.
Slide 6: Details of Financial Results for Mar/19
OVERVIEW OF FINANCIAL RESULTS FOR MAR/19 SHAREHOLDER RETURN EARNINGS FORECAST FOR MAR/20 REFERENCES 4
Slide 7: Consolidated Financial Results Mar/19
Consolidated Financial Results Mar/19 4th Quarter （JPY Bn） FY2017 FY2018 Diff. y/y Diff. y/y (Jan-Mar)(6) Operating Revenue 1,383.2 1,487.2 +104.0 +7.5% 356.1 +18.9 +5.6% International Passenger (1) 462.9 530.6 ＋67.7 +14.6% 127.1 +10.7 +9.2% Domestic Passenger (1) 518.2 528.0 +9.8 +1.9% 123.3 +3.6 +
Slide 8: Changes in Operating Profit (Revenues / Expenses)
Changes in Operating Profit（ Revenues ／ Expenses ） Mar/19 (FY2018) （JPY Bn） ＋ stands for profit increase (revenue increase, cost decrease) ASK y/y ： ＋4.0% ＋1.5Bn ▲ stands for profit decrease (revenue decrease, cost increase) RPK y/y ： ＋4.7% (＋0.9%) The effect of the change of the settlement Adjustme
Slide 9: Changes in Operating Profit (Market / Others)
Changes in Operating Profit（ Market ／ Others ） Mar/19 (FY2018) （JPY Bn） ＋ stands for profit increase (revenue increase, cost reduction) ▲ stands for profit decrease (revenue decrease, cost increase) Impact from +1.5Bn Currency Market +1.2Bn (+0.9%) Revenue ▲1.4Bn (Excl. Market Impact) Cost +2.6Bn Re
Slide 10: International Passenger Operations
International Passenger Operations International Passenger Change in Revenue FY2017 FY2018 y/y ratio 4th Quarter y/y ratio （ JPY Bn ） +67.7Bn (Jan-Mar)(5) （+14.6％） Passenger 530.6 +14.6% 127.1 +9.2% ・Flight cancellation due Revenue(1) 462.9 to typhoons and (JPY Bn) (524.4) (+13.3%) (125.4) (+7.7%) ・
Slide 11: Domestic Passenger Operations
Domestic Passenger Operations Domestic Passenger Change in Revenue 4th Quarter （ JPY Bn ） +9.8Bn FY2017 FY2018 y/y ratio (Jan-Mar)(5) y/y ratio (+1.9%) Passenger 528.0 +1.9% 123.3 +3.1% Revenue(1) 518.2 (JPY Bn) (534.3) (+3.1%) (125.1) (+4.6%) ・Flight cancellation due Passengers to typhoons and (’00
Slide 12: The New Passenger Service System
The New Passenger Service System The Effect during FY18 The New Passenger Service System 20 billion yen (estimated as maximum) Main functional International flights：10.0 Bn yen Major Improvements enhancements Domestic flights：10.0 Bn yen Improved Revenue Increase from Inbound Business Class and Func
Slide 13: Major Operating Expense Items
Major Operating Expense Items Operating Expenses 4th Quarter (JPY Bn) FY2017 FY2018 Diff. y/y (Jan-Mar)(3) Diff. y/y Fuel 215.2 251.2 +35.9 +16.7% 59.4 +2.1 +3.8% Landing and navigation fees 83.5 86.3 +2.8 +3.4% 21.4 +0.4 +2.0% Maintenance 62.0 72.9 +10.8 +17.5% 17.8 +7.1 +67.1% Sales commissions (A
Slide 14: Major Balance Sheet Items and Cash Flow Items
Major Balance Sheet Items and Cash Flow Items Balance Sheet End of End of Diff. (JPY Bn) FY2017 FY2018 (1) Total Assets amount as of the end of March, 2018 Total Assets(1) 1,853.9 2,030.3 +176.3 has been changed due to the revision of the Cash and Deposits(2) 448.8 522.0 +73.2 accounting standards a
Slide 15: Revenue of International Routes by Geographic Segment
《 Reference 》 Revenue of International Routes by Geographic Segment Passenger Revenue 4Q Component Ratio 4Q FY2018 (%) 3Months Component y/y y/y FY2017 FY2018 Ratio America +13.4％ +21.4% 26% 26% 25% Europe +12.8% ▲2.0% 16% 16% 13% Asia/Oceania +11.5% +3.2% 33% 33% 35% China +24.4% +7.7% 11% 11% 12%
Slide 16: Number of Aircraft
《 Reference 》 Number of Aircraft End of Mar/18 End of Mar/19 Diff. Owned Leased Total Owned Leased Total Boeing 777-200 12 0 12 12 0 12 - Boeing 777-200ER 11 0 11 11 0 11 - Boeing 777-300 4 0 4 4 0 4 - Boeing 777-300ER 13 0 13 13 0 13 - Large-sized Total 40 0 40 40 0 40 - Boeing 787-8 25 0 25 25 0 2
Slide 17: Shareholder Return / Details of Financial Results
OVERVIEW OF FINANCIAL RESULTS FOR MAR/19 SHAREHOLDER RETURN DETAILS OF FINANCIAL RESULTS FOR MAR/19 REFERENCES 15
Slide 18: FY2019 Earnings Forecast
FY2019 Earnings Forecast Revenue and Operational FY2019 FY2019 Preconditions ※y/y FY2018 Expenditure Plan FY2018 (Plan) Diff. y/y (Plan) (JPY Bn) ASK Int’l +6.0％ +2.5% Operating Revenue 1,487.2 1,563.0 +75.7 +5.1% Doms +1.1% +2.6% International 530.6 575.0 +44.3 +8.4% Total +4.0% +2.5% Passenger Dom
Slide 19: FY2019 Changes in Operating Profit (Revenues / Expenses)
FY2019 Changes in Operating Profit（ Revenues ／ Expenses ） Mar/20 (FY2019) （ JPY Bn ） ＋ stands for profit increase (revenue increase, cost reduction) ▲6.1Bn ▲ stands for profit decrease (revenue decrease, cost increase) ASK y/y： +2.5% (▲3.5%) RPK y/y： +3.1% ＋3.8Bn (＋2.2%) Other Revenues Fuel Cargo ＋1
Slide 20: FY2019 Changes in Operating Profit (Market / Others)
FY2019 Changes in Operating Profit（ Market ／ Others ） Mar/20 (FY2019) ＋ stands for profit increase (revenue increase, cost decrease) （ JPY Bn ） ▲6.1Bn ▲ stands for profit decrease (revenue decrease, cost increase) (▲3.5%) Fuel/FX Markets FY18 FY19 ＋3.8Bn Singapore Kerosene 83.9 90.0 (＋2.2%) Revenue
Slide 21: FY2019 Recent Market Situations
FY2019 Recent Market Situations Reservations in the long holidays “Golden Week” * Large Increase in Reservation Rate year on year in both International and Domestic Passenger *From April 27 to May 6 International Passenger Domestic Passenger 100.0% FY2018 FY2019 100.0% FY2018 FY2019 94.3% 86.6% 90
Slide 22: FY2019 Earnings Forecast
FY2019 Earnings Forecast Balance Sheet End of (1) NOPAT/Average Fixed Asset (incl. Future Rental Expenses under End of Operating Leases) at beginning and end of a fiscal year （JPY Bn） FY2019 Diff. FY2018 (2) Figures in ( ) in End of FY2019 Plan and Diff do not include (Plan) the depreciation method
Slide 23: FY2019 Impact of Fuel and FX Markets
FY2019 Impact of Fuel and FX Markets Fuel Cost Breakdown by Factors Hedge Ratio (JPY Bn) (As of End of Mar/2019) 300 Volume increase/ 60% Hedging Fuel Approx. Approx. FX +8.6 FX Market +9.0 40% 40% 40% +15.1 250 284.0 ＋32.7Bn 20% Approx. Approx. (＋13.0%) Approx. Approx. 251.2 10% 10% 5% 5% 0% 200 FY
Slide 24: FY2019 Earnings Forecast (Air Transportation Segment)
FY2019 (Mar/20) Earnings Forecast（Air transportation Segment） y/y(%) International Passenger FY2018 FY2019 Full-year 1H 2H (Forecast) (Forecast) (Forecast) Passenger Revenue (JPY Bn) 530.6 575.0 +8.5％ +8.5％ +8.5％ Passengers (’000) 9,128 9,490 +4.0％ +3.1％ +4.8％ ASK (MN seat km) 54,925 56,284 +2.5％ +3
Slide 25: References
OVERVIEW OF FINANCIAL RESULTS FOR MAR/19 SHAREHOLDER RETURN DETAILS OF FINANCIAL RESULTS FOR MAR/19 EARNINGS FORECAST FOR MAR/20 REFERENCES 23
Slide 26: Reference: ESG
《Reference》ESG Environmental Social Governance ・Low-Carbon Initiatives: ・Diversity promotion initiatives Introduce fuel-efficient aircraft and ・High transparency and strict ・Build a sustainable supply chain management oversight： aim for eco-friendly operation ・Contribute to regional revitalization -
Slide 27: Reference: Financial Strategy and Capital Policy①
《Reference》Financial Strategy and Capital policy① ※Originally disclosed on February 25,2019 25
Slide 28: Reference: Financial Strategy and Capital Policy②
《Reference》Financial Strategy and Capital policy② ※Originally disclosed on February 25,2019 26
Slide 29: Reference: Financial Strategy and Capital Policy③
《Reference》Financial Strategy and Capital policy③ ※Originally disclosed on February 25,2019 27
Slide 30: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations, Japan Airlines
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