Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q3 FY2023 Earnings Presentation
25 slides from Japan Airlines's earnings presentation, Feb 2, 2024
Slide 1: Financial Results 3rd Quarter Mar/2024 (FY2023)
JAPAN AIRLINES Co.,Ltd. Financial Results 3rd Quarter Mar/2024（FY2023） February 2, 2024 ©Japan Airlines, ALL rights reserved.
Slide 2: Agenda: Performance overview, recent topics, details, references
SKYTRAX SKYTRAX SKYTRAX APEX 2023 Covid-19 Safety World Airline Star Health Safety Powered Rating World's Best Economy Class Rating by SimpliFlying Audit 5-Star Best Economy Class Airline seat 5-Star Diamond 1. PERFORMANCE OVERVIEW FOR FY23Q3 APEX WORLD CLASS Wi-Fi in Eastern Asia 2024APEX"Best 2. R
Slide 3: Performance Overview for FY2023Q3
Performance Overview for FY2023Q3 ✔ Increased revenue/profit vs pre-pandemic levels, achieved by swiftly recovering capacity ahead of others and steadily capturing the recovering passenger demand ✔ No changes made to consolidated financial results forecast and dividend forecast Revenue EBIT (1) / Net
Slide 4: FY2023Q3 Performance by Business Domain
FY2023Q3 Performance by Business Domain ✔ Revenue and EBIT improved significantly, driven by Full Service Carrier ✔ LCC’s EBIT made profitable. Mileage, Lifestyle and Infrastructure steadily recorded profit Revenue by Business Domain EBIT by Business Domain Full Service Carrier Cargo and Mail LCC(1) Fu
Slide 5: Recent Topics
1. PERFORMANCE OVERVIEW FOR FY23Q3 2. RECENT TOPICS 3. DETAILS OF FINANCIAL RESULTS FOR FY23Q3 4. REFERENCES ©Japan Airlines, ALL rights reserved. 5
Slide 6: Recent Topics
RECENT TOPICS Full Service Carrirer（Int'l 貨物・郵便 Passenger） LCC（ZIPAIR） New Aircraft A350-1000 Haneda - New York started ■Narita - Vancouver route to begin service on March 13, service on January 24 2024 ■A350-1000 will be launched on the Haneda - Dallas route ■Expanded to 9 destinations, aiming for
Slide 7: Initiatives for SAF
Initiatives for SAF(1) （Developments on Domestic SAF Production） ■Steady progress made toward the goal of replacing 10% of all fuel on board with SAF by 2030, especially with developments on production of Japan-made SAF. FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024～ FY2025 Target Replace 1% of J
Slide 8: Details of Financial Results for FY23Q3
1. PERFORMANCE OVERVIEW FOR FY23Q3 2. RECENT TOPICS 3. DETAILS OF FINANCIAL RESULTS FOR FY23Q3 4. REFERENCES ©Japan Airlines, ALL rights reserved. 8
Slide 9: Consolidated Financial Results
Details of financial results for FY2023Q3 Consolidated Financial Results Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) (JPY Bn) Vs. FY19Q3 Vs. FY22Q3 Vs. FY22Q3 FY19Q3 FY22Q3 FY23Q3 FY23Q3 Diff. y/y Diff. y/y Diff. y/y Revenue 1,112.7 1,005.5 1,249.3 +136.6 +12.3% +243.7 +24.2% 428.4 +41.3 +10.7% Full Service Car
Slide 10: Changes in EBIT (Revenues/Expenses)
Details of financial results for FY2023Q3 Changes in EBIT (Revenues／Expenses) + stands for profit increase（ revenue increase, cost decrease ) RPK y/y ： +40.5% ▼ stands for profit decrease ( revenue decrease, cost increase ) ASK y/y ： +19.8% ＋94.2 Bn （JPY Bn） Domestic Cargo/ Mileage, Passenger Mail Life
Slide 11: Changes in EBIT (Market and other impact)
Details of financial results for FY2023Q3 Changes in EBIT (Market and other impact) （JPY Bn） + stands for profit increase（revenue increase, cost decrease) ▼stands for profit decrease (revenue decrease, cost increase) Impact from ＋94.2 Bn Currency Market ▼9.4 Bn Revenue +13.5 Bn (Excl. Market Impact) Co
Slide 12: Int'l & Domestic Passenger Operations (Full Service Carrier)
Details of financial results for FY2023Q3 Int’l & Domestic Passenger Operations (Full Service Carrier) ✔ Int’l PAX: Strong inbound demand. Outbound demand expected to recover toward March ✔ Dom. PAX: Although demand slow around Jan., revenue per passenger above forecast Passenger Demand（VS.CY2019）(1)
Slide 13: Int'l & Domestic Passenger Operations (Full Service Carrier)
Details of financial results for FY2023Q3 Int’l & Domestic Passenger Operations (Full Service Carrier) Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) International Passenger FY19Q3 FY22Q3 FY23Q3 Vs. FY19Q3 Vs. FY22Q3 FY23Q3 Vs. FY22Q3 Passenger Revenue (JPY Bn) 401.3 287.1 471.7 +17.5% +64.3% 157.3 +27.0% Passe
Slide 14: Cargo
Details of financial results for FY2023Q3 Cargo ✔ International cargo strived to capture demand between Asia/China and North America, amid a slow recovery in demand for cargo to/from Japan ✔ Revenue exceeded pre-pandemic levels by maximizing volume, through high value-added cargo such as pharmaceutic
Slide 15: LCC
Details of financial results for FY2023Q3 LCC ✔ ZIPAIR scheduled to begin service on the Vancouver route in March, expanding its destination to 9 cities mainly in North America and Asia, to record strong profits. Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) ZIPAIR FY22Q3 FY23Q3 Vs. FY22Q3 FY23Q3 Vs. FY22Q3 Pas
Slide 16: Expenses
Details of financial results for FY2023Q3 Expenses ✔ Actual fixed costs was 375.7 billion yen, achieved through steady cost control Major Operating Expense Items Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) （JPY Bn） Vs. FY19Q3 Vs. FY22Q3 Vs. FY22Q3 FY19Q3 FY22Q3 FY23Q3 FY23Q3 Diff. y/y Diff. y/y Diff. y/y Fuel 18
Slide 17: Fuel Costs
Details of financial results for FY2023Q3 Fuel Costs Changes in fuel costs Hedge Ratio (As of End of Dec./2023) （JPY (JPY Bn) Bn） Hedging Volume Market and others +34.1 ▼63.0 +40.0 FX 266.2 241.6 +13.4 101.8 ＋24.5Bn (+10.2%) FY21Q3 FY22Q3 FY23Q3 FY23 FY24 FY25 Fuel Hedging FX Hedging Foreign currency
Slide 18: Balance Sheet and Cash Flow
Details of financial results for FY2023Q3 Balance Sheet and Cash Flow BS ✔ Equity ratio is 40,1% and Net D/E ratio is x0.0 both in terms of credit rating evaluation basis, kept at a healthy level CF ✔ Cash flow from Operating Activities is 273.2 billion yen. Free Cash Flow maintained at previous year'
Slide 19: References
1. PERFORMANCE OVERVIEW FOR FY23Q3 2. RECENT TOPICS 3. DETAILS OF FINANCIAL RESULTS FOR FY23Q3 4. REFERENCES ©Japan Airlines, ALL rights reserved. 19
Slide 20: Operation Performance by Geographic Segment (Full Service Carrier)
[Reference] Operation Performance by Geographic Segment (Full Service Carrier) Passenger Revenue Revenue Passengers Carried Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) FY23Q3 FY23Q3 ('000) (%） Component Vs. FY19Q3 Vs. FY22Q3 Component Vs. FY22Q3 FY23Q3 Vs. FY19Q3 Vs. FY22
Slide 21: Fleet Information
[Reference] Fleet Information End of FY22 (March 31, 2023) End of FY23Q3 (December 31, 2023) Diff. Owned Leased Total Owned Leased Total Airbus A350-1000 0 0 0 1 0 1 +1 Airbus A350-900 12 4 16 12 4 16 0 Large Boeing 777-300ER 13 0 13 13 0 13 0 Boeing 777-200ER 3 0 3 0 0 0 ▼3 Large-sized Total 28 4 32
Slide 22: Details of FY2023 Full-Year Performance Forecast
[Reference] Details of FY2023 Full-Year Performance Forecast ※From presentation material announced on October 31, 2023 FY22 FY23 EBIT by Business Domain (JPY Bn) FY22 FY23 FY23 Initial New Results Forecast Forecast Diff. (JPY Bn) Initial New Results Forecast Forecast Revenue 1,375.5 1,658.0 1,684.0 +
Slide 23: FY2023 Full-Year Forecast Balance Sheet and Cash Flow
[Reference] FY2023 Full-Year Performance Forecast Balance Sheet and Cash Flow ※From presentation material announced on October 31, 2023 FY23 FY23 End of FY22 (Initial (New （JPY Bn） Balance Sheet (Results) Forecast) Forecast) Diff. Total Assets 2,520.6 2,544.0 2,642.0 +98.0 Balance of Interest-bearing
Slide 24: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations Japan Airlines ©Japan Airlines, ALL rights reserved. 24
Slide 25: 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