Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q3 FY2020 Earnings Presentation
23 slides from Japan Airlines's earnings presentation, Feb 1, 2021
Slide 1: Financial Results 3rd Quarter FY2020
JAPAN AIRLINES Co., Ltd. Financial Results 3rd Quarter Mar/2021 (FY2020) February 1, 2021 ©Japan Airlines, ALL rights reserved.
Slide 2: Today's Topics
Today’s Topics PERFORMANCE OVERVIEW OF 3 rd Quarter P.3 FY2020 EARNINGS FORECAST FOR FY2020 P.4 LATEST INITIATIVES P.6 DETAILS OF FINANCIAL RESULTS FOR P.8 3 rd Quarter FY2020 P.15 REFERENCES IFRS is adopted from the fiscal year ending Mar 2021, instead of the previously used Japanese standard. Acco
Slide 3: Financial Results for 3Q of FY2020
Financial Results for 3Q of FY2020 ✓ Large drop in revenue due to the COVID-19 pandemic ✓ Despite the cost reduction efforts, we were unable to cover the decline in revenue and posted a significant loss Revenue(1) EBIT (1)(2)/Profit or Loss (1)(3)/EBIT Margin(1)(4) Profit EBIT （EBIT margin） （JPY Bn）
Slide 4: FY2020 Earnings Forecast
FY2020 Earnings Forecast ✓ Demand Forecast was revised based on the latest booking until fiscal year end ✓ Full-year forecast is EBIT of ▼420 billion yen and net loss of ▼300 billion yen ✓ To secure liquidity at hand and prevention of worsening financial structure, no dividend is forecasted Change i
Slide 5: FY2020 Earnings Forecast Financial Position
FY2020 Earnings Forecast Financial Position (1) ✓ Cash on hand will be 370 billion yen as of the end of March 2021 ✓ Equity Ratio will be 44.3% and D/E Ratio will be 0.5 times End of FY2019 End of FY2020 （JPY Bn） Diff. Results New Forecast Total Assets 1,982.2 2,100.0 +117.7 Cash and Deposits 329.1
Slide 6: Cost and CAPEX Reduction Initiatives
Cost and CAPEX Reduction Initiatives Cost Reduction CAPEX Reduction Fixed Cost 90 billion yen reduction from the initial plan is estimated as the previous forecast ◼ Further reduction of over 120 billion yen is estimated from the original plan (102 billion yen 【FY20 CAPEX】 reduction has been achieve
Slide 7: Bolstering Liquidity
Bolstering Liquidity ✓ Liquidity at hand as of the end of Dec is more than 750 billion yen, including unused credit line ✓ Cash burn is steadily decreasing until Q3. In Q4, it will remain around the half of the Q1 level because of cash outflow reduction efforts despite the uneasy situation Cash Bala
Slide 8: Financial Results (Details)
FINANCIAL RESULTS (DETAILS) ©Japan Airlines, ALL rights reserved. 8
Slide 9: Consolidated Financial Results for 3Q FY2020
Consolidated Financial Results for 3Q FY2020 (1) 3Q 3Q 3 rd quarter （JPY Bn） Diff. y/y Diff. y/y FY2019 FY2020 FY2020(6) Revenue 1,112.7 356.5 ▼756.1 ▼68.0% 161.7 ▼202.0 ▼55.5％ International Passenger 401.3 18.8 ▼382.4 ▼95.3% 9.6 ▼118.7 ▼92.5％ Domestic Passenger 427.9 136.9 ▼291.0 ▼68.0% 67.3 ▼74.8
Slide 10: Changes in EBIT (Revenues/Expenses)
Changes in EBIT (Revenues／Expenses) (1) (2) ASK y/y： ▼66.8% ＋ stands for profit increase (revenue increase, cost decrease) ▼ stands for profit decrease (revenue decrease, cost increase) RPK y/y： ▼84.8％ （JPY Bn） ▼ 408.8 114.6 3rd Quarter Int’l FY2019 Passenger ▼382.4 ▼294.1 Other Others(4) Expenses ▼
Slide 11: Int'l/Domestic Passenger Operations (Full Service Carrier)
Int’l/Domestic Passenger Operations (Full Service Carrier) ✓ Significant reduction in the international passenger demand continues ✓ Domestic passenger demand was on recovery and GoTo Travel promotional campaign increased group tour passengers while revenue per passenger dropped due to demand mix In
Slide 12: Cargo / Mail
Cargo / Mail ✓ Demand was captured as much as possible to increase revenue significantly (yoy+31.5%) in spite of the limited passenger flights. ✓ Cargo flights utilizing passenger aircrafts totaled at 11,378 from Apr to Dec 2020. ✓ Large-lot cargo demand was captured by chartered freighter flights.
Slide 13: Major Operating Expense Items
Major Operating Expense Items (1) ✓ Reduced revenue- and capacity-linked costs, equivalent of approximately 40% of reduced revenue (298.8 Bn JPY) ✓ Fixed cost is steadily reduced by 102 billion yen from the original plan（Details on P.6) 3rd 3Q 3Q （JPY Bn） Diff. y/y quarter Diff. y/y FY2019 FY2020 FY
Slide 14: Summary of Consolidated Statement of Financial Position and Cash Flow
Summary of Consolidated Statement of Financial Position and Cash Flow (1) ✓ Equity capital increased through public offerings to 1 trillion and 17.1 billion yen and the equity ratio was 47.6% BS ✓ Interest-bearing debts decreased to 494.5 billion yen from the end of Q2, the repayment within one year
Slide 15: References
REFERENCES ©Japan Airlines, ALL rights reserved. 15
Slide 16: Anti-COVID-19 Measures
《Reference》 Anti-COVID-19 Measures ◼ In-cabin air is replaced in two to three Cabin Appeal of Flysafe Environment in Cabin minutes ◼ Air flows from top to bottom ◼ Passengers do not get on/off during In-cabin Air Flow Image the flight ◼ Passengers face to the same direction ◼ HEPA Filter is equipped
Slide 17: Operation Performance by Geographic Segment (Full Service Carrier)
《Reference》 Operation Performance by Geographic Segment (Full Service Carrier) Passenger Revenue (1) Revenue Passengers Carried (1) (2) 3Q 3Q (Cumulative) 3Q (Cumulative) 3rd quarter 3rd quarter (%) Cumulative % (‘000) y/y y/y FY2019 FY2020 FY2019 FY2020 y/y FY2020 y/y America ▼94.9% ▼91.0% 28% 30
Slide 18: Fleet Information
《 Reference 》 Fleet Information End of FY2019 End of 3nd Quarter FY2020 (March 31, 2020) (December 31, 2020) Diff. Owned Leased Total Owned Leased Total Boeing 777-300ER 13 0 13 13 0 13 - Large Boeing 777-200ER 11 0 11 11 0 11 - Large-sized Total 24 0 24 24 0 24 - FSC Boeing 787-9 17 3 20 17 3 20 -
Slide 19: Strategic Direction Toward New Normal
《 Reference 》 Strategic Direction Toward New Normal Path to Recovery of Enterprise Value Our Structural Restructuring Outcome Responsibilities Safety and Restructuring the Comfort Business Structure Reconstruction of Endure COVID-19 Improve profitability / a strong financial Pandemic / take initiati
Slide 20: Structural Review for the New Normal
《 Reference 》 Structural Review for the New Normal Restructuring of the Business Structure Take initiatives for Growth and Improve Profitability / Take Initiatives for SDGs Risk Tolerance ◼ FSC Business ◼ LCC Business Flexible adjustments of fleets and retirement of aged aircrafts Strengthen LCC bus
Slide 21: Accounting Impact by IFRS Adoption
《Reference》 Accounting Impact by IFRS Adoption Profit/Loss Statement ◼ Due to changes in accounting rules for mileage points, revenue allocated to mileage points is deferred as a liability, and recognized when miles are redeemed (The impacts to Profit/loss are limited) ◼ Our main index for performan
Slide 22: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations, Japan Airlines ©JapanAirlines, ©Japan Airlines, ALL ALL rights rightsreserved. reserved.
Slide 23: 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