Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — Q1 FY2019 Earnings Presentation

23 slides from Japan Airlines's earnings presentation, Jul 31, 2019

  1. Slide 1: Financial Results 1st Quarter Mar/2020 (FY2019)

    JAPAN AIRLINES Co., Ltd. Financial Results 1st Quarter Mar/2020（FY2019） July 31, 2019

  2. Slide 2: Today's Topics

    Today’s Topics P.1 P.2 REFERENCES P.14 SKYTRAX FlightStats SKYTRAX 5-Star Airline The best on-time The World’s Best Economy Class Asia-Pacific Airline The Best Economy Class Seat (Note) Regarding figures in tables of this material, amounts are rounded down to the nearest hundred million yen, and the

  3. Slide 3: Overview of Financial Results for 1st Quarter Mar/20

    Overview of Financial Results for 1st Quarter Mar/20  Operating Revenue increased by capturing demand steadily. Without the depreciation method change, Operating Profit was at the same level year-on-year Operating Revenue Operating profit・Net profit (1)・Operating profit margin Figures in ( ) exclud

  4. Slide 4: Consolidated Financial Results for 1st Quarter Mar/20

    Consolidated Financial Results for 1st Quarter Mar/20 1st Quarter 1st Quarter （JPY Bn） Mar/19 Mar/20 Diff. y/y Operating Revenue 342.1 355.7 +13.6 +4.0% International Passenger 124.8 127.8 ＋3.0 +2.4% Domestic Passenger 117.2 123.9 +6.6 +5.7% Cargo / Mail 24.2 22.7 ▲1.4 ▲6.1% Other 75.7 81.1 ＋5.3 +7.

  5. Slide 5: Changes in Operating Profit (Revenues/Expenses)

    Changes in Operating Profit(Revenues/Expenses ） 1st Quarter Mar/20 （ JPY Bn ） ＋ stands for profit increase (revenue increase, cost decrease) ▲ stands for profit decrease (revenue decrease, cost increase) ▲3.8 Bn ASK y/y ： +2.0% (▲15.6%) RPK y/y ： +2.9% ▲0.5Bn (▲2.1%) Other Revenues Fuel Maintenance

  6. Slide 6: Changes in Operating Profit (Market/Others)

    Changes in Operating Profit（ Market/Others ） 1st Quarter Mar/20 （ JPY Bn ） ＋ stands for profit increase (revenue increase, cost decrease) ▲ stands for profit decrease (revenue decrease, cost increase) Impact from Currency Market ▲2.1Bn ▲3.8 Bn Revenue ▲0.0Bn Cost ▲2.1Bn (▲15.6%) Fuel ▲1.4Bn ▲0.5Bn E

  7. Slide 7: International Passenger Operations

    International Passenger Operations International Passenger Change in Revenue （ JPY Bn ） 1st Quarter 1st Quarter ＋3.0 ＋30億円Bn y/y Mar/19 Mar/20 (＋2.4%) Including the Passenger Revenue 124.8 127.8 +2.4% Passenger Service (JPY Bn) System Effects +0.5 127.8 Passengers (’000) 2,251 2,262 +0.5% 124.8 ＋2.5

  8. Slide 8: Domestic Passenger Operations

    Domestic Passenger Operations Domestic Passenger Change in Revenue 1st Quarter 1st Quarter （ JPY Bn ） y/y Mar/19 Mar/20 ＋6.6 Bn Passenger Revenue (＋5.7%) 117.2 123.9 +5.7% (JPY Bn) ・ Demand Rise during Passengers 8,297 8,654 +4.3% the long holidays(＋) (’000) ・ Increase in individual Including the pa

  9. Slide 9: Major Operating Expense Items

    Major Operating Expense Items Operating Expenses 1st Quarter 1st Quarter (JPY Bn) Diff. y/y Mar/19 Mar/20 Fuel 60.3 63.6 +3.2 +5.5% Landing and navigation fees 21.2 21.4 +0.1 +0.6% Maintenance 18.5 19.2 +0.6 +3.6% Sales commissions (Air Transport) 4.7 4.6 ▲0.0 ▲2.0% 31.5 +4.0 +14.7% Aircraft (1) (2)

  10. Slide 10: Impact of Fuel and FX Markets

    Impact of Fuel and FX Markets Hedge Ratio Fuel Cost Breakdown by Factors (As of End of Jun/2019) （ JPY Bn ） Volume 100% 70 increase/ Fuel FX Hedging Market FX +2.5 63.6 80% 60.3 ▲0.6 +1.4 60 60% Approx. Approx. 40% 40% ＋3.2Bn 40% 50 (＋5.5%) Approx. Approx. 15% 15% 20% Approx. Approx. 5% 5% 40 1st Qu

  11. Slide 11: Major Balance Sheet Items and Cash Flow Items

    Major Balance Sheet Items and Cash Flow Items Balance Sheet End of 1st Quarter （JPY Bn） End of Mar/19 Diff. Mar/20 Total Assets 2,030.3 2,016.8 ▲13.5 Cash and Deposits (1) 522.0 491.7 ▲30.3 Balance of Interest-bearing Debt (2) 142.3 142.0 ▲0.3 Future Rental Expenses under Operating Leases 81.1 77.1

  12. Slide 12: Revenue of International Routes by Geographic Segment

    《 Reference 》 Revenue of International Routes by Geographic Segment Passenger Revenue Revenue Passengers Carried y/y Component Ratio (‘000) 1Q Mar/19 1Q Mar/20 y/y (%) 1Q Mar/20 1Q Mar/19 1Q Mar/20 America 330 368 +11.2% America +16.4% 26% 30% Europe 182 185 +1.6% Europe ▲2.7% 17% 16% Asia/Oceania 1

  13. Slide 13: Number of Aircraft

    《 Reference 》 Number of Aircraft End of Mar/19 End of 1st Quarter Mar/20 (March 31, 2019) (June 30, 2019) Diff. Owned Leased Total Owned Leased Total Airbus A350-900 0 0 0 1 0 1 +1 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

  14. Slide 14: FY2019 Earnings Forecast

    《 Reference 》 FY2019 Earnings Forecast ※No change from the figures disclosed on April 26, 2019 Revenue and FY2019 Operational FY2019 Preconditions ※y/y FY2018 Expenditure Plan FY2018 Diff. y/y (Plan) (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%

  15. Slide 15: FY2019 Earnings Forecast

    《 Reference 》 FY2019 Earnings Forecast ※No change from the figures disclosed on April 26, 2019 Balance Sheet End of End of (1) NOPAT/Average Fixed Asset (incl. Future Rental Expenses under （JPY Bn） FY2019 Diff. FY2018 Operating Leases) at beginning and end of a fiscal year (Plan) (2) Figures in ( )

  16. Slide 16: References

    OVERVIEW OF FINANCIAL RESULTS FOR 1ST QUARTER MAR/20 DETAILS OF FINANCIAL RESULTS FOR 1ST QUARTER MAR/20 REFERENCES 14

  17. Slide 17: ESG

    《Reference》 ESG  Contribute to achieve SDGs, through our business activities, toward the realization of a sustainable society and corporate value increase  Established The JAL Group Code of Conduct “Commitment to Society” Environmental Social Governance ・High transparency and strict ・Low-Carbon In

  18. Slide 18: Financial Strategy and Capital Policy ①

    《Reference》 Financial Strategy and Capital policy① ※Originally disclosed on February 25,2019 Capital investments will be made within cash flow from operating activities. Approximately 2/3 of the total investment will be actively used for growth investment to increase corporate value. Aircraft invest

  19. Slide 19: Financial Strategy and Capital Policy ②

    《Reference》 Financial Strategy and Capital policy② ※Originally disclosed on February 25,2019 We will strategically allocate capital to increase corporate value, while maintaining a firm financial structure with high capital efficiency. Improve asset efficiency Further increase Capital allocation and

  20. Slide 20: Financial Strategy and Capital Policy ③

    《Reference》 Financial Strategy and Capital policy③ ※Originally disclosed on February 25,2019 （Partial update ） Stable financial structure with high capital efficiency Enhancement of shareholder return and capital allocation for corporate value increases Financial structure Capital efficiency Shareho

  21. Slide 21: Financial Strategy and Capital Policy ④ Shareholder Return Policy

    《Reference》 Financial Strategy and Capital policy④ ※Originally disclosed on April 26,2019 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 sh

  22. Slide 22: Fly into tomorrow.

    Fly into tomorrow. Finance & Investor Relations, Japan Airlines ©Japan Airlines, ALL rights reserved.

  23. 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

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