Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q3 FY2015 Earnings Presentation
33 slides from Japan Airlines's earnings presentation, Jan 29, 2016
Slide 1: Financial Results 3rd Quarter MAR/2016 (FY2015)
Financial Results 3rd Quarter MAR/2016 (FY2015) January 29th, 2016
Slide 2: Contents
CONTENTS @ | JAPAN AIRLINES DETAILS OF 38° QUARTER MAR/16 ™ FINANCIAL RESULTS SUPPLEMENTAL REFERENCES OVERVIEW OF 3®2 QUARTER Ce) MAR/16 RESULTS Cr) DIVIDEND FORECAST FOR MARI16 PROGRESS OF MEDIUM TERM MANAGEMENT PLAN
Slide 3: Overview of 3rd Quarter FY MAR/16 Results
Overview of 3rd Quarter FY MAR/16 Results Operating Revenue Operating Profit （JPY Bn） Operating Profit Margin （JPY Bn） 1,030 180 170.0 20% 1,022.3 ＋1.0Bn 1,023.4 160 ＋31.7Bn 18% （+0.1%） 1,020 140 138.2 (+23.0%) 16% 16.6% 120 14% 1,010 100 13.5% 12% 1,000 80 10% 3rd Quarter 3rd Quarter 3rd Quarter 3r
Slide 4: Operating revenue increased 0.1%; operating profit up to 170 billion yen
Operating revenue for the third quarter increased by 0.1% year-on-year to 1 trillion 23.4 billion yen due to an increase mainly in domestic passenger revenue. Notwithstanding the weaker yen, operating profit increased by 31.7 billion yen year-on-year to 170 billion yen due to an increase in revenu
Slide 5: Dividend Forecast for FY3/16
Dividend Forecast for FY3/16 Dividend Forecast FY 3/15 Forecast for (Result) FY 3/16 Dividend per share for FY3/16 Net Income(※) 149.0 JPY Bn 172.0 JPY Bn FY3/16 － 119.00JPY Income Tax-Deferred 1.3 JPY Bn （Forecast） +15.00JPY (+14.4%) 150.3 JPY Bn 172.0 JPY Bn Total amount for 37.7 JPY Bn 43.1 JPY B
Slide 6: Full-year forecast unchanged; dividend per share 119 yen
The full-year earnings forecast has not been changed since the announced date, October 30, 2015. We intend to return 25% of full-year net income after adjusting income tax deferred to our shareholders as dividends. Therefore Dividend Per Share for this fiscal year is estimated to be 119yen, that i
Slide 7: Progress of Medium Term Management Plan
Progress of Medium Term Management Plan Product and Service Enhancements ～JAL is the World’s Best Airline for On-time Flights～ ～JAL is ranked No.1 for “Loyalty” for 3 consecutive years ※Announced on January 7th, 2016 and No.1 for “Customer Satisfaction” for the first time in Major International Ai
Slide 8: Product and service recognition and route network
In terms of products and services, we were named by FlightStats of the U.S. as the world’s best airline for on-time arrivals in 2015. In the JCSI (Japanese Customer Satisfaction Index) survey for fiscal 2015, we ranked first for customer loyalty (intention to reuse rate) of international flights f
Slide 9: Consolidated Financial Results
Consolidated Financial Results Consolidated Financial Results 3rd Quarter Mar/16 3rd Quarter 3rd Quarter 3rd Quarter （JPY Bn） y/y ratio (5) y/y ratio Operating revenue was Mar/2015 Mar/2016 (Oct-Dec) 1,023.4 billion yen, up Operating Revenue 1,022.3 1,023.4 +0.1% 335.4 ▲0.9% 0.1% y/y. Air Transpor
Slide 10: Operating revenue up 0.1%, expenses down 3.5%
Aggregate operating revenue for the third quarter increased by 0.1% year-on- year to 1 trillion 23.4 billion yen mainly due to an increase in domestic passenger revenue. Notwithstanding effects of the weaker yen, operating expenses decreased by 3.5% to 853.3 billion yen primarily due to a sharp dr
Slide 11: Changes in Operating Profit
Changes in Operating Profit 3rd Quarter FY Mar/16 （JPY Bn） +31.7Bn Impact From Currency (+23.0%) Aircraft Maintenance Market ▲JPY20.1Bn Fuel Depreciation Revenue ＋JPY12.4Bn and Cost ▲JPY32.5Bn ▲6.7 Leases Personnel Fuel ▲JPY20.5Bn ▲1.8 Ex. Fuel ▲JPY12.0Bn ▲21.9% ▲2.6% ▲8.1 Other Costs ASK y/y： +0.2%
Slide 12: Operating revenue increased on robust domestic demand
The operating revenue increased by about 1 billion yen year-on-year due to robust domestic passenger demand. International passenger revenue remained at the same level year-on-year due to an increase in number of passengers along with strong inbound demand, despite a decline in fuel surcharge reve
Slide 13: International Passenger Operations (Operating Results)
International Passenger Operations (Operating Results) International Passenger 3rd Quarter 3rd Quarter 3rd Quarter Passenger revenue was 345.9 y/y (Oct-Dec) (1) y/y Mar/2015 Mar/2016 billion yen, unchanged y/y Passenger basis. Revenue 345.9 345.9 ▲0.0% 110.3 ▲1.5% ASK was up 1.1% and RPK （JPY Bn
Slide 14: International ASK up 1.1%, RPK up 6.1%
On international flights, ASK increased by 1.1% year-on-year due to the starting of service to Dallas Fort Worth and an increase in flight frequency on China route, and RPK was up 6.1% as a result of capturing robust inbound demand. This resulted in a load factor of 79.1%, up 3.7 points on the prev
Slide 15: International Passenger Operations (Change in Revenue)
International Passenger Operations(Change in Revenue) 3rd Quarter FY Mar/16 （JPY Bn） ▲JPY0.0 Bn Although revenue per passenger (▲0.0%) declined due to a decrease in fuel surcharge, revenue management and expansion of JAL SKY SUITE 345.9 345.9 contributed to an increase in L/F and net unit price. ▲
Slide 16: International passenger revenue flat at 345.9 billion yen
Regarding revenue per passenger, although fuel surcharge revenue declined, the decline in revenue per passenger was partly set off by an increase in net revenue per passenger through the revenue management and the weaker yen. As for passenger numbers, inbound demand continued to rise primarily on
Slide 17: Domestic Passenger Operations (Operating Results)
Domestic Passenger Operations (Operating Results) Domestic Passenger 3rd Quarter 3rd Quarter 3rd Quarter Passenger revenue was y/y y/y Mar/2015 Mar/2016 (Oct-Dec) (1) 384.1 billion yen, up 3.0% Passenger y/y. Revenue 373.0 384.1 +3.0% 127.3 +2.0% （JPY Bn） ASK ASK was ▲1.1% while （MN seat km） 27,
Slide 18: Domestic load factor 68%, up 1.5 points
On domestic flights, ASK declined by 1.1% from the previous year, but RPK increased by 1.2%, resulting in a load factor of 68%, up 1.5 points on the previous year. Yield and revenue per passenger increased by 1.7% and 1.6% year-on-year respectively through revenue management. As a result, domest
Slide 19: Domestic Passenger Operations (Change in Revenue)
Domestic Passenger Operations(Change in Revenue) 3rd Quarter FY Mar/16 （JPY Bn） Changes in customer mix through +JPY11.1Bn revenue management (+3.0%) ・Well-reputed JAL SKY NEXT 384.1 ・Increase of individual passengers +5.0 Increase in passenger numbers through measures to boost demand +6.1 etc..
Slide 20: Domestic passenger revenue up 6.1 billion yen
Passenger revenue increased by 6.1 billion yen year-on-year due to changes in customer mix through revenue management. Despite a 1.1% decline in ASK from the previous year, domestic passenger revenue increased by 5 billion yen year-on-year due to a new advance purchase fare called Ultra Sakitoku
Slide 21: Major Operating Expense Items
Major Operating Expense Items Operating Expenses Increase in some cost items 3rd 3rd Quarter due to the weak yen and Quarter 3rd Quarter （JPY Bn） Diff. y/y ratio (Oct-Dec)(1) Diff. y/y ratio service enhancements. We FY FY MAR/16 MAR/15 will maintain cost reduction Fuel 223.0 180.7 ▲42.3 ▲19.0% 58.
Slide 22: Fuel costs decreased by 42.3 billion yen
Fuel costs decreased by 42.3 billion yen to 180.7 billion yen. Maintenance costs increased, mainly due to the weaker yen. Personnel costs increased by 8.1 billion yen year-on-year, due to increases in basic wages and bonuses and effects of exchange rates. The decrease in expenses of travel ag
Slide 23: Impact of Fuel and FX Markets
Impact of Fuel and FX Markets Hedging Ratio of Fuel Costs* Transition of Fuel Cost by Factors (As of End of 3rd Quarter FY Mar/16) (JPY Bn) *Approximately 250 100% 90% 3rd Quarter Fuel 3rd Quarter Fuel FX FY MAR/15 Market FY MAR/16 80% 220 Volume increase/ 190 Hedging etc. 60% ▲86.2 223.0 FX +23.4 4
Slide 24: Factors affecting the decrease in fuel costs
For factors affecting the decrease in fuel costs, please refer to the graph at the upper left of the page. Although fuel costs decreased by 86.2 billion yen year-on-year due to the sharp fall in fuel prices, the weaker yen pushed up fuel costs by 20.5 billion yen, and loading volume and gains and
Slide 25: Major Balance Sheet Items
Major Balance Sheet Items Consolidated Balance Sheet Summary as of end of 3rd Quarter FY Mar/16 End of FY End of 3rd Quarter (JPY Bn) Mar/15 FY Mar/16 difference The balance of interest- 2015/3/31 2015/12/31 bearing debt decreased by 20.7 billion yen to 79.8 Total Assets 1,473.3 1,545.7 +72.4 bill
Slide 26: Interest-bearing debt down to 79.8 billion yen
The balance of interest-bearing debt came to 79.8 billion yen, down 20.7 billion yen from the previous fiscal year-end, as a result of repaying long-term loans and lease obligations. Future Rental Expense under Operating Leases decreased by 20 billion yen from the previous fiscal year-end to 105
Slide 27: Major Cash Flow Items
Major Cash Flow Items （JPY Bn） 3rd Quarter FY Mar/15 3rd Quarter FY Mar/16 Difference Net income before income taxes and non-controlling interests 136.8 172.3 +35.4 Depreciation and Amortization 64.7 65.8 +1.0 Other ▲17.1 ▲14.1 +3.0 Cash Flow from Operating Activities 184.4 223.9 +39.5 Capital Expen
Slide 28: Operating cash flow totaled 223.9 billion yen
Cash flow from operating activities totaled 223.9 billion yen, up 39.5 billion yen from the year-earlier-period. Cash flow from investing activities decreased by 4.8 billion yen year-on-year, and we are progressing according to our plan. In cash flow from financing activities, the repayment of i
Slide 29: Fly into tomorrow.
Fly into tomorrow. Finance, Japan Airlines
Slide 30: Supplemental Reference: Revenue of International Routes by Geographic Segment
《Supplemental Reference》 Revenue of International Routes by Geographic Segment Passenger Revenue (% of the whole int’l revenue) Passengers FY Mar/16 FY Mar/16 FY Mar/15 FY Mar/16 FY Mar/15 FY Mar/16 (%) Difference 3rd Quarter Difference (‘000 passengers) Difference 3rd Quarter Difference 3rd Quarter
Slide 31: Supplemental Reference: Number of Aircraft in Service as of December 2015
《Supplemental Reference》 Number of Aircraft in Service as of December 2015 End of Mar/15 End of 3rd Quarter FY Mar/16 2015/3/31 2015/12/31 Increase/ decrease Owned Leased Total Owned Leased Total Boeing 777-200 13 0 13 12 0 12 ▲1 Large Size Boeing 777-200ER 11 0 11 11 0 11 - Boeing 777-300 7 0 7 5 0
Slide 32: Supplemental Reference: FY2015 Earnings Forecast (Consolidated)
《Supplemental Reference》 FY2015 Earnings Forecast（Consolidated） FY Mar/15 FY Mar/16 Forecast for (JPY Bn） FY Mar/16 Result Forecast Operating Revenue 1,344.7 1,347.0 ASK* Int’l +1.5% Doms. ▲1.1% Operating Expense 1,165.0 1,143.0 ASK Total +0.4% Operating Profit 179.6 204.0 RPK* Int’l +6.7% Operating
Slide 33: This contents contains descriptions of the future expectations, outlooks, objectives and plans etc. of
This contents 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 created by the