Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — FY2017 Earnings Presentation
29 slides from Japan Airlines's earnings presentation, Apr 27, 2018
Slide 1: Japan Airlines Financial Results Mar/2018 (FY2017)
JAPAN AIRLINES Co., Ltd. Financial Results MAR/2018（FY2017） April 27th, 2018
Slide 2: Today's Topics
Today’s Topics P.1 P.2 P.3 P.4 P.14 P.20 ※JAL Corporate Website ※the CONTRAIL Project
Slide 3: Overview of Financial Results for Mar/18
Overview of Financial Results for Mar/18 Resulted in an increase both in revenue and operating profit compared to the previous year. Aim to increase both revenue and profit in FY2018 Operating Revenue Operating profit・Net profit Operating （JPY Bn） Operating Net Profit ROIC (2) （JPY Bn） Profit Pr
Slide 4: Dividend
Dividend Payout Approximately 30% of net profit attributable to owners of parent excluding income tax deferred is Ratio considered as a reference of dividends to shareholders DOE JAL will aim at 3% or above, considering the target ROE level(10%) and the target dividend ratio (30%) Dividend per sha
Slide 5: ESG
ESG Environmental Social Governance Low-Carbon Initiatives ： ・High transparency and strict Introduce fuel-efficient aircraft and ・Further promote workstyle innovation: management oversight： aim for eco-friendly operation Reduce overtime -3 Independent External Directors with ・Continue atmospheric ob
Slide 6: Details of Financial Results for Mar/18
OVERVIEW OF FINANCIAL RESULTS FOR MAR/18 DIVIDEND ESG EARNINGS FORECAST FOR MAR/19 REFERENCES 4
Slide 7: Consolidated Financial Results
Consolidated Financial Results Consolidated Financial Results Mar/18 4th Quarter （JPY Bn） FY2016 FY2017 Diff. y/y (Jan-Mar)(5) Diff. y/y Operating Revenue 1,288.9 1,383.2 +94.2 +7.3% 337.2 +23.7 +7.6% Air Transportation Segment 1,159.3 1,257.2 +97.8 +8.4% 306.7 +24.5 +8.7% Operating Expense 1,118.6
Slide 8: Changes in Operating Profit (Revenues / Expenses)
Changes in Operating Profit（ Revenues ／ Expenses ） Mar/18 (FY2017) （JPY Bn） ＋ stands for profit increase (revenue increase, cost reduction) ＋4.2Bn ▲ stands for profit decrease (revenue decrease, cost increase) ASK y/y ： ＋1.7% (＋2.5%) RPK y/y ： ＋3.8% Other Revenues Fuel Cargo ＋13.1 & Mail ▲16.4 Maint
Slide 9: Changes in Operating Profit (Market / Others)
Changes in Operating Profit（ Market ／ Others ） Mar/18 (FY2017) ＋ stands for profit increase (revenue increase, cost reduction) （ JPY Bn ） ▲ stands for profit decrease (revenue decrease, cost increase) Impact from +4.2Bn Currency Market ▲2.2Bn (+2.5%) (Excl. Market Impact) Revenue ＋7.0Bn Cost ▲9.2Bn
Slide 10: International Passenger Operations
International Passenger Operations International Passenger Change in Revenue （ JPY Bn ） FY2016 FY2017 y/y 4th Quarter y/y ＋47.7Bn (Jan-Mar)(4) (+11.5%) Passenger Revenue 462.9 415.2 462.9 +11.5% 116.4 +15.6% +9.7 (JPY Bn) Passengers 8,394 8,585 +2.3% 2,211 +4.6% ＋38.0 (’000) 415.2 ASK 50,621 51,836
Slide 11: Domestic Passenger Operations
Domestic Passenger Operations Domestic Passenger Change in Revenue 4th Quarter FY2016 FY2017 y/y (Jan-Mar)(4) y/y ( JPY Bn ） ＋19.6Bn Passenger Revenue (＋3.9%) 498.6 518.2 +3.9% 119.6 +1.7% (JPY Bn) ・Increase in individual passengers (+) Passengers ・Recovery from a plunge in demand by 32,570 34,033 +
Slide 12: Major Operating Expense Items
Major Operating Expense Items Operating Expenses 4th Quarter (JPY Bn) FY2016 FY2017 Diff. y/y Diff. y/y (Jan-Mar)(3) Fuel 198.7 215.2 +16.4 +8.3% 57.3 +6.3 +12.6% Landing and navigation fees 81.1 83.5 +2.4 +3.0% 21.0 +0.8 +4.3% Maintenance 48.9 62.0 +13.1 +26.8% 10.6 +2.6 +32.7% Sales commissions (A
Slide 13: Major Balance Sheet Items and Cash Flow Items
Major Balance Sheet Items and Cash Flow Items End of End of Balance Sheet (JPY Bn) FY2016 FY2017 Diff. Total Assets 1,728.7 1,854.2 +125.4 Cash and Deposits (1) 404.0 448.8 +44.7 Balance of Interest-bearing Debt (2) 116.0 125.7 +9.7 Future Rental Expenses under Operating Leases 76.4 67.4 ▲8.9 1 Cert
Slide 14: Revenue of International Routes by Geographic Segment
《 Reference 》 Revenue of International Routes by Geographic Segment Passenger Revenue 4Q Component Ratio FY2017 (%) 3Months 4Q y/y 4Q 4Q 3 Months y/y FY2016 FY2017 America +13.7% +11.0% 26% 26% 23% Europe +22.2% +33.5% 15% 16% 14% Asia/Oceania +9.1% +15.4% 34% 33% 37% China +12.3% +20.4% 10% 11% 12%
Slide 15: Reference: Number of Aircraft
《Reference》 Number of Aircraft End of Mar/17 End of Mar/18 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 25
Slide 16: Earnings Forecast for Mar/19
OVERVIEW OF FINANCIAL RESULTS FOR MAR/18 DIVIDEND ESG DETAILS OF FINANCIAL RESULTS FOR MAR/18 REFERENCES 14
Slide 17: FY2018 Earnings Forecast
FY2018 Earnings Forecast Revenue and Expenditure Plan Operational Preconditions FY2018 FY2018 （JPY Bn） FY2017 Diff. y/y FY2017 (Plan) (Plan) Operating Revenue 1,383.2 1,455.0 +71.7 +5.2% Int’l +2.4% +6.8% International 462.9 515.0 +52.0 +11.3% ASK Doms +0.8% +1.8% Passenger (1) Domestic 518.2 520.0
Slide 18: FY2018 Changes in Operating Profit (Revenues / Expenses)
FY2018 Changes in Operating Profit（ Revenues ／ Expenses ） Mar/19 (FY2018) （JPY Bn） ＋ stands for profit increase (revenue increase, cost reduction) ▲ stands for profit decrease (revenue decrease, cost increase) ASK y/y：＋4.8% ▲7.5Bn RPK y/y：＋4.4% (▲4.3%) Other Revenues Fuel Cargo Passenger Int’l Domes
Slide 19: FY2018 Changes in Operating Profit (Market / Others)
FY2018 Changes in Operating Profit（ Market ／ Others ） Mar/19 (FY2018) ＋ stands for profit increase (revenue increase, cost reduction) （ JPY Bn ） ▲7.5Bn ▲ stands for profit decrease (revenue decrease, cost increase) Fuel/FX Markets FY17 FY18 (▲4.3%) Revenue Cost Singapore Kerosene 67.8 73.0 increase
Slide 20: FY2018 Earnings Forecast: Balance Sheet
FY2018 Earnings Forecast Balance Sheet End of End of （JPY Bn） Diff. FY2017 FY2018 (Plan) Total Assets 1,854.2 1,933.0 +78.7 Balance of Interest-bearing 125.7 164.0 +38.2 debts Shareholders’ Equity 1,060.3 1,122.0 +61.6 Shareholders’ Equity Ratio (%) 57.2% 58.0% +0.9pt 1 Net Operating Profit After Ta
Slide 21: Impact of Fuel and FX Markets
Impact of Fuel and FX Markets Hedge Ratio of Fuel Costs Transition of Fuel Cost by Factors (As of End of Mar/2018) (JPY Bn) Volume increase/ 60% 250 FX Hedging Fuel Market FX +1.6 Approx. Approx. +6.7 40% 40% 40% +17.5 200 241.0 215.2 ＋25.7 Bn 20% (＋12.0%) Approx. Approx. 10% 10% Approx. Approx. 5%
Slide 22: References
OVERVIEW OF FINANCIAL RESULTS FOR MAR/18 DIVIDEND ESG DETAILS OF FINANCIAL RESULTS FOR MAR/18 EARNINGS FORECAST FOR MAR/19 REFERENCES 20
Slide 23: FY2018 Earnings Forecast (Air Transportation Segment)
《 Reference 》 FY2018 (Mar/19) Earnings Forecast（Air transportation Segment） y/y(%) International Passenger FY2017 FY2018 Full-year 1H 2H (Forecast) (Forecast) (Forecast) Passenger Revenue(1) (JPY Bn) 462.9 515.0 +11.3% +13.7% +9.0% Passengers (’000) 8,585 8,994 +4.8% +6.6% +3.0% ASK (MN seat km) 51,
Slide 24: Financial Strategy and Capital Policy 1
《Reference》Financial Strategy and Capital Policy① ※Reproduce, announced on February 28, 2018 22
Slide 25: Financial Strategy and Capital Policy 2
《Reference》 Financial Strategy and Capital Policy② ※Reproduce, announced on February 28, 2018 *1 Free cash flow (3-year aggregate)=Cash flow from operating activities-Cash flow from investing activities *3 Indicates dividend yield of shareholders’ equity *2 3-year aggregate new debts used (new procu
Slide 26: Financial Strategy and Capital Policy 3
《Reference》 Financial Strategy and Capital Policy③ ※Reproduce, announced on February 28, 2018 24
Slide 27: Innovation of Passenger Service System
《Reference》 Innovation of Passenger Service System ※Reproduce, announced on February 28, 2018 25
Slide 28: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations, Japan Airlines
Slide 29: 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