Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — FY2022 Earnings Presentation

29 slides from Japan Airlines's earnings presentation, May 2, 2023

  1. Slide 1: Financial Results Mar/2023 (FY2022)

    JAPAN AIRLINES Co., Ltd. Financial Results Mar/2023（FY2022） FY2023 JAL Group Entrance Ceremony （April 3, 2023） May 2, 2023 ©Japan Airlines, ALL rights reserved.

  2. Slide 2: Agenda and notes

    SKYTRAX SKYTRAX SKYTRAX 2022 Covid-19 Safety World Airline Star SKYTRAX Rating Rating Best Economy Class Airline Seat 5-Star 5-Star COVID-19 Excellence Award ※ 1. PERFORMANCE OVERVIEW FOR FY2022 APEX Health Safety Powered APEX APEX 2. FORECAST FOR FY2023 FULL-YEAR by SimpliFlying Audit WORLD CLASS F

  3. Slide 3: Performance Overview for FY2022

    Performance Overview for FY2022 ✔ Recovering passenger demand pushed up EBIT to 64.5 billion yen and Net Profit to 34.4 billion yen, exceeding the previous forecast of EBIT 50 billion yen ✔ Year end dividend forecast increased by 5 yen to 25 yen per share as Net Profit improved Revenue EBIT (1) / Profi

  4. Slide 4: FY2022 Performance by Business Domain

    FY2022 Performance by Business Domain ✔ Revenue and EBIT steadily improved as passenger demand recovered in line with expectations ✔ LCC’s EBIT turned black on a quarterly basis for the first time. Mileage performed strongly Mileage, Lifestyle FY22 Full Service Carrier Cargo / Mail LCC (1) and Infras

  5. Slide 5: Agenda

    1. PERFORMANCE OVERVIEW FOR FY2022 2. FORECAST FOR FY2023 FULL-YEAR 3. DETAILS OF FINANCIAL RESULTS FOR FY2022 4. REFERENCES ©Japan Airlines, ALL rights reserved. 5

  6. Slide 6: FY2023 Full-Year Performance Forecast

    FY2023 Full-Year Performance Forecast ✔ Consolidated full-year forecast: Revenue 1,658 billion yen, EBIT 100 billion yen and Net Profit 55 billion yen due to further recovering passenger demand ✔ Full-year dividend forecast is 40 yen per share Revenue EBIT / Profit (JPY Bn) +282.4 Bn (JPY Bn) +35.4 Bn

  7. Slide 7: Details of FY2023 Full-Year Performance Forecast

    Details of FY2023 Full-Year Performance Forecast FY22 FY23 EBIT by Business Domain (JPY Bn) FY22 FY23 (JPY Bn) Results Forecast Diff. y/y Results Forecast Revenue 1,375.5 1,658.0 +282.4 +20.5% Full Service Carrier 24.9 45.0 Cargo / Mail Full Service Carrier 1,108.6 1,281.0 +172.3 +15.5% LCC (1) ▼8.0

  8. Slide 8: Premises of Performance Forecast for FY2023: Passenger Operations

    Premises of Performance Forecast for FY2023 Int’l & Domestic Passenger Operations (Full Service Carrier) ✔ International Pax’s unit price remains high, and the easing of restrictions on the China routes is expected to further improve its performance ✔ Domestic Pax recovers close to CY19 levels. Aimi

  9. Slide 9: Premises of Performance Forecast for FY2023: Cargo

    Premises of Performance Forecast for FY2023 Cargo (International Cargo) ✔ Cargo volumes exceeding pre-pandemic levels is expected, achieved through utilization of passenger flights, 767 freighters and other companies' freighters ✔ Maintain and improve unit prices by maximizing network revenues throug

  10. Slide 10: Changes in EBIT (Revenues/Expenses) FY2023 Forecast

    Details of FY2023 Full-Year Performance Forecast Changes in EBIT (Revenues／Expenses) + stands for profit increase（ revenue increase, cost decrease ) ASK y/y： +19.6% ▼ stands for profit decrease ( revenue decrease, cost increase ) +35.4 Bn Mileage, Lifestyle and （JPY Bn） Infrastructure and others(1) +6

  11. Slide 11: Agenda

    1. PERFORMANCE OVERVIEW FOR FY2022 2. FORECAST FOR FY2023 FULL-YEAR 3. DETAILS OF FINANCIAL RESULTS FOR FY2022 4. REFERENCES ©Japan Airlines, ALL rights reserved. 11

  12. Slide 12: Consolidated Financial Results

    Details of financial results for FY2022 Consolidated Financial Results Q4 (Apr. to Mar.) Q4 (Jan. to Mar.) (JPY Bn) Vs. FY19Q4 Vs. FY21Q4 Vs. FY21Q4 FY19Q4 FY21Q4 FY22Q4 Diff. y/y Diff. y/y FY22Q4 Diff. y/y Revenue 1,385.9 682.7 1,375.5 ▼10.3 ▼0.7% +692.8 +101.5% 369.9 +185.7 +100.8% Full Service Carrie

  13. Slide 13: Changes in EBIT (Revenues/Expenses)

    Details of financial results for FY2022 Changes in EBIT (Revenues／Expenses) + stands for profit increase（ revenue increase, cost decrease ) RPK y/y ： +191.3% ▼ stands for profit decrease ( revenue decrease, cost increase ) ASK y/y ： +59.8% ＋304.0Bn （JPY Bn） Mileage, Lifestyle and Infrastructure Full Se

  14. Slide 14: Changes in EBIT (Market and other impact)

    Details of financial results for FY2022 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 Currency Market ▼49.4 Bn ＋304.0 Bn (Excl. Market Impact) Revenue +44.1 Bn Re

  15. Slide 15: Int'l & Domestic Passenger Operations (Full Service Carrier)

    Details of financial results for FY2022 Int’l & Domestic Passenger Operations (Full Service Carrier) Q4 (Apr. to Mar.) Q4 (Jan. to Mar.) International Passenger FY19Q4 FY21Q4 FY22Q4 Vs. FY19Q4 Vs. FY21Q4 FY22Q4 Vs. FY21Q4 Passenger Revenue (JPY Bn) 486.2 68.7 417.5 ▼14.1% +507.0% 130.4 +501.2% Passen

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

    Details of financial results for FY2022 Int’l & Domestic Passenger Operations (Full Service Carrier) ✔ Int’l passengers exceeded previous forecast by capturing strong Japan-bound demand ✔ Domestic passenger demand recovered strongly toward the end of the fiscal year Passenger Demand（VS.CY2019）(1) Reve

  17. Slide 17: Cargo

    Details of financial results for FY2022 Cargo Q4 (Apr. to Mar.) Q4 (Jan. to Mar.) International Cargo FY19Q4 FY21Q4 FY22Q4 Vs. FY19Q4 Vs. FY21Q4 FY22Q4 Vs. FY21Q4 Cargo Revenue (JPY Bn) 59.7 182.8 188.9 +216.2% +3.3% 32.6 ▼34.1% Available Ton Km (MN ton km) 4,418 3,345 3,855 ▼12.8% +15.2% 1,001 +20.4

  18. Slide 18: Cargo (International Cargo)

    Details of financial results for FY2022 Cargo (International Cargo) ✔ Volume was secured above total demand, although slightly lower than the previous forecast ✔ Unit price fell below the previous forecast due to the recovery of supply in the market and rapid slowdown of cargo demand Volume（VS.CY2019

  19. Slide 19: LCC

    Details of financial results for FY2022 LCC ZIPAIR SPRING JAPAN (1)(2) Q4 (Apr. to Q4 (Apr. to Mar.) Q4 (Jan. to Mar.) Q4 (Jan. to Mar.) LCC Mar.) Vs. Vs. Vs. FY21Q4 FY22Q4 FY22Q4 FY22Q4 FY22Q4 FY21Q4 FY21Q4 FY21Q4 Passenger Revenue（JPY Bn） 0.７ 22.4 ｰ 8.4 ｰ 8.2 2.7 +344.5% Passengers（’000） 25 488 ｰ 1

  20. Slide 20: Expenses

    Details of financial results for FY2022 Expenses ✔ Actual fixed costs for FY22 was 492.5 billion yen, suppressed under the annual goal of 500 billion yen. Major Operating Expense Items Q4 (Apr. to Mar.) Q4 (Jan. to Mar.) （JPY Bn） Vs. FY19Q4 Vs. FY21Q4 Vs. FY21Q4 FY19Q4 FY21Q4 FY22Q4 Diff. y/y Diff. y/y

  21. Slide 21: Fuel Costs

    Details of financial results for FY2022 Fuel Costs Changes in fuel costs Hedge Ratio (As of End of Mar/2023) （JPY (JPY Bn) Bn） FX +59.6 Market +105.5 323.3 Hedging Volume and others +63.1 ▼50.4101.8 145.4 ＋177.8 Bn (＋122.3%) FY21Q3 FY23 FY24 FY25 FY21Q4 FY22Q4 Fuel Hedging FX Hedging Foreign currency

  22. Slide 22: Balance Sheet and Cash Flow

    Details of financial results for FY2022 Balance Sheet and Cash Flow BS ✔ Equity ratio is 39.3% and Net D/E ratio is x0.1 both in terms of credit rating evaluation basis, keeping a healthy level CF ✔ Cash flow from Operating Activities is 292.9 billion yen, Free Cash Flow is 180.1 billion yen of inflow,

  23. Slide 23: Agenda: References

    1. PERFORMANCE OVERVIEW FOR FY2022 2. FORECAST FOR FY2023 FULL-YEAR 3. DETAILS OF FINANCIAL RESULTS FOR FY2022 4. REFERENCES ©Japan Airlines, ALL rights reserved. 23

  24. Slide 24: Operation Performance by Geographic Segment

    [Reference] Operation Performance by Geographic Segment (Full Service Carrier) Passenger Revenue Revenue Passengers Carried Q4 (Apr. to Mar.) Q4 (Jan. to Mar.) Q4 (Apr. to Mar.) Q4 (Jan. to Mar.) (%） ('000) FY22Q4 FY22Q4 FY22Q4 Vs. FY19Q4 Vs. FY21Q4 FY22Q4 Vs. FY21Q4 Component Ratio Vs. FY19Q4 Vs. F

  25. Slide 25: Fleet Information

    [Reference] Fleet Information End of FY21 (March 31, 2022) End of FY22 (March 31, 2023) Diff. Total2 Mar/23 Owned Leased Total1 Retired Owned Leased Total - Total2 of Mar/22 AircraftExcluded Airbus A350-900 11 4 (1) 15 15 12 4 16 +1 Boeing 777-300ER 13 0 13 13 13 0 13 0 Boeing 777-300 4 0 4 0 0 0 0 0

  26. Slide 26: FY2023 Earnings Forecast (Air transportation Segment)

    [Reference] FY2023 Earnings Forecast（Air transportation Segment） Vs. CY19(%) Vs. FY22(%) （Actual number shown for L/F） （Actual number shown for L/F） International Passenger CY19 (4) FY22 FY23 Full-year 1st Half 2nd Half Full-year 1st Half 2nd Half (Forecast) (Forecast) (Forecast) (Forecast) (Forecas

  27. Slide 27: FY2023 Earnings Forecast (Balance Sheet and Cash Flow)

    [Reference] FY2023 Earnings Forecast (Balance Sheet and Cash Flow) （JPY Bn） End of End of Balance Sheet Diff. FY22(Results) FY23(Forecast) Total Assets 2,520.6 2,544.0 +23.3 Balance of Interest-bearing debts 925.5 883.0 ▼42.5 Shareholders’ Equity(1) 816.2 850.0 +33.7 ※1 Figures in brackets represent

  28. Slide 28: Fly into tomorrow.

    Fly into tomorrow. Finance & Investor Relations Japan Airlines ©Japan Airlines, ALL rights reserved. 28

  29. Slide 29: 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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