Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — Q3 FY2022 Earnings Presentation

26 slides from Japan Airlines's earnings presentation, Feb 2, 2023

  1. Slide 1: Japan Airlines Financial Results 3rd Quarter FY2022

    JAPAN AIRLINES Co., Ltd. Financial Results 3rd Quarter Mar/2023（FY2022） On New Year’s Day, 2023 Mt. Fuji and the first sunrise from “New Year Sunrise Flight” February 2, 2023 Operated as a Sustainable Flight with SAF (Sustainable Aviation Fuel) ©Japan Airlines, ALL rights reserved.

  2. Slide 2: Agenda and recognitions

    SKYTRAX SKYTRAX SKYTRAX World Airline Star 2022 Covid-19 Safety SKYTRAX Rating Rating 5-Star World's Best Economy Class 5-Star COVID-19 Excellence Award ※ APEX APEX APEX 1. PERFORMANCE OVERVIEW FOR FY22Q3 WORLD CLASS FIVE STAR Health Safety Powered by SimpliFlying Audit Diamond 2. FORECAST FOR FY22

  3. Slide 3: Performance Overview for FY22Q3

    Performance Overview for FY22Q3 ✔ Demand for International and Domestic Passenger rapidly recovered since October ✔ Net profit turned black in the third quarter, following the positive EBIT in the first half Revenue EBIT (1) / Profit or Loss (2) (JPY Bn) (JPY Bn) +507.1 Bn (+101.7%) EBIT Margin(3) 3.5%

  4. Slide 4: FY22Q3 Performance by Business Domain

    FY22Q3 Performance by Business Domain ✔ Revenue/EBIT steadily improved as passenger demand recovered ✔ Mileage Business records stable profit FY22 Q3 Mileage, Lifestyle (Apr. to Dec.) Full Service Carrier Cargo / Mail LCC (1) and Infrastructure （JPY Bn） and others (2) Revenue 634.1 183.4 20.1 167.7 E

  5. Slide 5: Forecast for FY22 Full-Year

    1. PERFORMANCE OVERVIEW FOR FY22Q3 2. FORECAST FOR FY22 FULL-YEAR 3. INITIATIVES FOR SAF 4. DETAILS OF FINANCIAL RESULTS FOR FY22Q3 5. REFERENCES ©Japan Airlines, ALL rights reserved. 5

  6. Slide 6: FY22 Full-Year Performance Forecast Revision

    FY22 Full-Year Performance Forecast Revision ✔ Downward revision conducted for revenue, EBIT and net profit to reflect latest demand trends for passenger and cargo ✔ Steady cost reduction, although not able to cover downturn of dom. passenger revenue ✔ We will strive to resume dividends despite the re

  7. Slide 7: Details of FY22 Full-Year Performance Forecast Revision

    Details of FY22 Full-Year Performance Forecast Revision FY2021 FY2022 EBIT by Business Domain FY2022 (JPY Bn) (4) Previous New Diff. Diff. (JPY Bn) Previous(4) New Results Forecast Forecast Forecast y/y Forecast Forecast Revenue 682.7 1,404.0 1,358.0 ▼46.0 +675.2 Full Service Carrier 47.0 13.0 Full Se

  8. Slide 8: Premises of Forecast: Int'l & Domestic Passenger Operations

    Premises of Performance Forecast for FY22 Full-year Int’l & Domestic Passenger Operations (Full Service Carrier) ✔ International Passenger number is less than the previous forecast but revenue is above the previous forecast due to increasing revenue per passenger ✔ Domestic Passenger number will ris

  9. Slide 9: Premises of Forecast: Cargo, LCC, Mileage and others

    Premises of Performance Forecast for FY22 Full-year Cargo, LCC, Mileage, Lifestyle, Infrastructure and others ✔ Int’l Cargo volume maintains previous forecast levels amid declining market avg., but lower unit price from relaxation of supply-demand balance results in lower revenue than previously exp

  10. Slide 10: Initiatives for SAF

    1. PERFORMANCE OVERVIEW FOR FY22Q3 2. FORECAST FOR FY22 FULL-YEAR 3. INITIATIVES FOR SAF 4. DETAILS OF FINANCIAL RESULTS FOR FY22Q3 5. REFERENCES ©Japan Airlines, ALL rights reserved. 10

  11. Slide 11: Initiatives for SAF (1)

    Initiatives for SAF(1) FY2018 FY2019 FY2020 FY2021 FY2022 SAF Procurement 1 from overseas • Invested in Fulcrum • Loaded SAF for flight • Joint procurement in • Fulcrum BioEnergy, Inc., BioEnergy, Inc., from San Fransisco the oneworld alliance starts production • Start loading SAF for 2 Aemetis Inc.,

  12. Slide 12: Details of Financial Results for FY22Q3

    1. PERFORMANCE OVERVIEW FOR FY22Q3 2. FORECAST FOR FY22 FULL-YEAR 3. INITIATIVES FOR SAF 4. DETAILS OF FINANCIAL RESULTS FOR FY22Q3 5. REFERENCES ©Japan Airlines, ALL rights reserved. 12

  13. Slide 13: Consolidated Financial Results

    Details of financial results for FY22Q3 Consolidated Financial Results Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) (JPY Bn) Vs. FY19Q3 Vs. FY21Q3 Vs. FY21Q3 FY19Q3 FY21Q3 FY22Q3 Diff. y/y Diff. y/y FY22Q3 Diff. y/y Revenue 1,112.7 498.4 1,005.5 ▼107.1 ▼9.6% +507.1 +101.7% 387.0 +179.2 +86.2% Full Service Carrie

  14. Slide 14: Changes in EBIT (Revenues/Expenses)

    Details of financial results for FY22Q3 Changes in EBIT (Revenues／Expenses) + stands for profit increase（ revenue increase, cost decrease ) RPK y/y ： +190.9% ▼ stands for profit decrease ( revenue decrease, cost increase ) ASK y/y ： +60.4% ＋218.0 Bn （JPY Bn） Mileage, Lifestyle and Infrastructure Full S

  15. Slide 15: Changes in EBIT (Market and other impact)

    Details of financial results for FY22Q3 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 ＋218.0 Bn Currency Market ▼41.7 Bn Revenue +34.5 Bn Cost ▼76.2 Bn (Excl. Mar

  16. Slide 16: Int'l & Domestic Passenger Operations (Full Service Carrier)

    Details of financial results for FY22Q3 Int’l & Domestic Passenger Operations (Full Service Carrier) Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) International Passenger FY19Q3 FY21Q3 FY22Q3 Vs. FY19Q3 Vs. FY21Q3 FY22Q3 Vs. FY21Q3 Passenger Revenue (JPY Bn) 401.3 47.0 287.1 ▼28.5% +509.7% 123.8 +589.7% Passen

  17. Slide 17: Cargo

    Details of financial results for FY22Q3 Cargo Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) International Cargo FY19Q3 FY21Q3 FY22Q3 Vs. FY19Q3 Vs. FY21Q3 FY22Q3 Vs. FY21Q3 Cargo Revenue (JPY Bn) 44.7 133.3 156.2 +249.1 % +17.2 % 47.2 ▼10.1% Available Ton Km (MN ton km) 3,378 2,513 2,853 ▼15.5% +13.5 % 995 +11

  18. Slide 18: LCC

    Details of financial results for FY22Q3 LCC ZIPAIR Spring Japan (1)(2) LCC Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) Q3 (Apr. to Dec.) Q3 (Oct. to Dec.) FY21Q3 FY22Q3 Vs. FY21Q3 FY22Q3 Vs. FY21Q3 FY22Q3 FY22Q3 Vs. FY21Q3 Passenger Revenue（JPY Bn） 0.2 13.9 - 6.5 - 5.4 1.7 +153.9% Passengers（’000） 11 306 - 1

  19. Slide 19: Expenses

    Details of financial results for FY22Q3 Expenses ✔ Actual fixed costs for FY22Q3 was 367.1 billion yen, on track to suppress it under the annual goal of 500 billion yen. Further cost control will be conducted to suppress increase in costs by the market. Major Operating Expense Items Q3 (Apr. to Dec.)

  20. Slide 20: Fuel Costs

    Details of financial results for FY22Q3 Fuel Costs Changes in fuel costs Hedge Ratio (As of End of Dec/2022) (JPY Bn) Market +95.1 241.6 FX Hedging Volume increase +49.1 and others +44.7 ▼49.1 45% 45% 101.8 25% 25% ＋139.8 Bn 15% 15% (＋137.3%) FY21Q3 FY22Q3 FY22 FY23 FY24 Fuel Hedging FX Hedging Forei

  21. Slide 21: Balance Sheet and Cash Flow

    Details of financial results for FY22Q3 Balance Sheet and Cash Flow BS ✔ Equity ratio is 39.5% and Net D/E ratio is x0.2 both in terms of credit evaluation basis, keeping a healthy level CF ✔ Cash flow from operating activities is 191.4 billion yen, Free cash flow is 117.3 billion yen of inflow, improvi

  22. Slide 22: References

    1. PERFORMANCE OVERVIEW FOR FY22Q3 2. FORECAST FOR FY22 FULL-YEAR 3. INITIATIVES FOR SAF 4. DETAILS OF FINANCIAL RESULTS FOR FY22Q3 5. REFERENCES ©Japan Airlines, ALL rights reserved. 22

  23. Slide 23: 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.) ('000) (%） FY22Q3 FY22Q3 FY22Q3 Vs. FY19Q3 Vs. FY21Q3 FY22Q3 Vs. FY21Q3 Component Ratio Vs. FY19Q3 Vs. F

  24. Slide 24: Fleet Information

    [Reference] Fleet Information End of FY21 (March 31, 2022) End of FY22Q3 (December 31, 2022) Diff. Total2 Total2 Total2 of Retired Retired Dec/22 Owned Leased Total1 AircraftExcluded Owned Leased Total1 AircraftExcluded - Mar/22 Airbus A350-900 11 4 15 15 12 4 16 16 +1 Boeing 777-300ER 13 0 (1) 13 13

  25. Slide 25: Fly into tomorrow.

    Fly into tomorrow. Finance & Investor Relations Japan Airlines ©Japan Airlines, ALL rights reserved. 25

  26. Slide 26: 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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