Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — Q1 FY2021 Earnings Presentation

23 slides from Japan Airlines's earnings presentation, Aug 3, 2021

  1. Slide 1: Financial Results 1st Quarter Mar/2022 (FY2021)

    JAPAN AIRLINES Co., Ltd. Financial Results 1st Quarter Mar/2022（FY2021） August 3, 2021 ©Japan Airlines, ALL rights reserved.

  2. Slide 2: Agenda

    SKYTRAX SKYTRAX 2019 The World’s Best Economy Class 5-Star Airline The Best Economy Class Seat 1. PERFORMANCE OVEVIEW FOR FY21Q1 APEX The 8th SKYTRAX Health Safety Powered IR Good Visual Award 2. RECENT OUTLOOK Covid-19 Safety Rating by SimpliFlying Audit 5-Sat Diamond 3. DETAILS OF FINANCIAL RESULT

  3. Slide 3: Performance Overview for FY21Q1

    PERFORMANCE OVERVIEW FOR FY21Q1  COVID-19 effect continues significantly  In order to secure liquidity at hand in this difficult situation, no interim dividends will be paid Revenue EBIT (1)/Profit or Loss (2) （JPY Bn）400.0 （JPY Bn） EBIT Profit or Loss ▼215.7 Bn 40.0 348.8 19.9 12.9 (▼61.9%) 300.0

  4. Slide 4: Performance Overview for FY21Q1

    1. PERFORMANCE OVEVIEW FOR FY21Q1 2. RECENT OUTLOOK 3. DETAILS OF FINANCIAL RESULTS FOR FY21Q1 4. RECENT TOPICS 5. REFERENCES ©Japan Airlines, ALL rights reserved. 4

  5. Slide 5: Recent Outlook: Passenger Operations, Cargo / Mail

    Recent Outlook Int’l / Domestic Passenger Operations (Full Service Carrier), Cargo / Mail  Passenger number increased gradually by transit demand for International Passenger Business while border restrictions continued  Domestic demand gradually recovered even with declaration of a state of emerge

  6. Slide 6: Initiatives for liquidity at hand

    Initiatives for liquidity at hand Liquidity and cash burn  Secured a sufficient level of liquidity over 650 billion yen, together with credit line  Q1 Cash burn was about 10 to 15 billion yen per month  Cash burn is expected to stop as demand recovers and advance received increases Cash Balance &

  7. Slide 7: Details of Financial Results for FY21Q1

    1. PERFORMANCE OVEVIEW FOR FY21Q1 2. RECENT OUTLOOK 3. DETAILS OF FINANCIAL RESULTS FOR FY21Q1 4. RECENT TOPICS 5. REFERENCES ©Japan Airlines, ALL rights reserved. 7

  8. Slide 8: Consolidated Financial Results

    DETAILS OF FINANCIAL RESULTS FOR FY21Q1 Consolidated Financial Results FY19Q1 FY20Q1 （JPY：Bn ） FY19Q1 FY20Q1 FY21Q1 Diff. y/y Diff. y/y Revenue 348.8 76.3 133.0 ▼215.7 ▼61.9% +56.6 +74.1% International PAX 130.6 2.7 11.2 ▼119.3 ▼91.4% +8.5 +315.0% Domestic PAX 127.1 18.9 38.0 ▼89.0 ▼70.1% +19.0 +100

  9. Slide 9: Changes in EBIT (Revenues/Expenses)

    DETAILS OF FINANCIAL RESULTS FOR FY21Q1 Changes in EBIT (Revenues／Expenses) ASK y/y ： +139.7% + stands for profit increase（ revenue increase, cost decrease ) RPK y/y ： +173.3% ▼ stands for profit decease ( revenue decrease, cost increase ) ＋48.3 Bn （JPY Bn） 4.2 Bn yen of Personnel cost reduction thr

  10. Slide 10: Int'l / Domestic Passenger Operations (Full Service Carrier)

    DETAILS OF FINANCIAL RESULTS FOR FY21Q1 Int’l / Domestic Passenger Operations (Full Service Carrier) International Passenger (1) FY19Q1 FY20Q1 FY21Q1 Vs. FY19Q1 Vs. FY20Q1 Passenger Revenue（JPY Bn） 130.6 2.7 11.2 ▼91.4% +313.8% Passengers（’000） 2,429 33 149 ▼93.8% +341.3% ASK（MN seat km） 13,767 1,13

  11. Slide 11: Cargo / Mail

    DETAILS OF FINANCIAL RESULTS FOR FY21Q1 Cargo / Mail  International Cargo revenue significantly increased because of high demand and high price level under decreased capacity of passenger fight belly space  To capture strong demand, many cargo flights with own passenger aircraft and chartered frei

  12. Slide 12: Expenses

    DETAILS OF FINANCIAL RESULTS FOR FY21Q1 Expenses Major Operating Expense Items 主要営業費用項 FY19Q1 FY20Q1 （JPY：Bn ） FY19Q1 FY20Q1 FY21Q1 Diff. y/y Diff. y/y Fuel 63.6 19.4 26.5 ▼37.0 ▼58.2% +7.1 +36.8% Landing and navigation fees 21.4 7.7 8.0 ▼13.3 ▼62.5% +0.2 +3.0% Maintenance 19.2 18.5 17.5 ▼1.7 ▼8.8%

  13. Slide 13: Summary of Consolidated Statement of Financial Position and Cash Flow

    DETAILS OF FINANCIAL RESULTS FOR FY21Q1 Summary of Consolidated Statement of Financial Position and Cash Flow  Secured 42.4% of Equity Ratio in the difficult situation BS  Sufficient long-term fund has been secured for 573.2 billion yen of Interest-bearing debts and 74.3 billion yen of repayment w

  14. Slide 14: Recent Topics

    1. PERFORMANCE OVEVIEW FOR FY21Q1 2. RECENT OUTLOOK 3. DETAILS OF FINANCIAL RESULTS FOR FY21Q1 4. RECENT TOPICS 5. REFERENCES ©Japan Airlines, ALL rights reserved. 14

  15. Slide 15: JAL's LCC Strategy Based in Narita Starts in Earnest

    RECENT TOPICS LCC JAL’s LCC Strategy Based in Narita Starts in Earnest  Global network was established with three Narita-based LCCs  Will capture swiftly post-COVID demand recovery • Various services will be provided with cutting-edge technology Japan’s first Mid- and • Restarts a Honolulu route i

  16. Slide 16: Recent Topics: ESG

    RECENT TOPICS ESG ESG Management to achieve SDGs Initiatives • Key initiatives and FY2025 targets regarding  Disclosure of climate-related financial 4 priority areas and 22 issues through JAL’s information along with TCFD guideline business activities are disclosed on JAL’s • JAL announced its supp

  17. Slide 17: Safety and Comfort

    RECENT TOPICS Safety and Comfort  Complimentary COVID-19  Contactless  Hygiene measures  Awards  PCR Testing Service Cover SMART AIRPORT Antiviral and First airline in Asia to PCR testing service for domestic Extended complimentary Expansion Antibacterial be best-awarded in routes COVID-19 cove

  18. Slide 18: References

    1. PERFORMANCE OVEVIEW FOR FY21Q1 2. RECENT OUTLOOK 3. DETAILS OF FINANCIAL RESULTS FOR FY21Q1 4. RECENT TOPICS 5. REFERENCES ©Japan Airlines, ALL rights reserved. 18

  19. Slide 19: A break-even matrix is shown as below

    Originally disclosed on May 7,2021 《Reference》 A break-even matrix is shown as below  However, EBIT & EBITDA(1) break-even Int’l PAX/Domestic PAX demand matrix is shown below(2)  Will take all possible measures to improve performance by flexible adjusting to fluctuating demands 100% 【Break-even De

  20. Slide 20: Operation Performance by Geographic Segment

    《Reference》 (1) Operation Performance by Geographic Segment (Full Service Carrier) Passenger Revenue Revenue Passengers Carried Component Ratio (%) Vs. FY19Q1 Vs. FY20Q1 (‘000) FY21Q1 Vs. FY19Q1 Vs. FY20Q1 FY21Q1 America 49% ▼85.6% +815.7% America 61 ▼84.5% +605.0% Europe 13% ▼93.2% +151.3% Europe 1

  21. Slide 21: Fleet Information

    《 Reference 》 Fleet Information End of FY20 (March 31, 2021) End of FY21Q1 (June 30, 2021) Diff. Owned Leased Total 1 Total 2 Owned Leased Total 1 Total 2 retired aircraft retired aircraft Total2 of Mar/21 - excluded excluded Jun/21 Airbus A350-900 4 4 8 8 5 4 9 9 +1 Boeing 777-300ER 13 0 13 13 13 0

  22. Slide 22: Finance & Investor Relations, Japan Airlines

    Finance & Investor Relations, Japan Airlines ©Japan Airlines, ALL rights reserved. 22

  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

Japan Airlines — Q1 FY2021 Earnings Presentation on 6ix