Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — Q1 FY2020 Earnings Presentation

28 slides from Japan Airlines's earnings presentation, Aug 3, 2020

  1. Slide 1: Financial Results 1st Quarter Mar/2021 (FY2020)

    JAPAN AIRLINES Co., Ltd. Financial Results 1st Quarter Mar/2021（FY2020） 『Team Asahikawa』（Handwritten by JAL Asahikawa Airport Office, JAL Engineering Asahikawa Airport Maintenance Office）and JAL Cabin Attendants) August 3, 2020 ©Japan Airlines, ALL rights reserved.

  2. Slide 2: Today's Topics

    Today’s Topics P.3 P.12 P.16 P.20 P.23 IFRS is adopted from the fiscal year ending Mar 2021, instead of the Japanese standard. Accordingly, figures in the previous years are also calculated in IFRS as well for comparison analysis. Japan Institute of FTE SKYTRAX SKYTRAX Information Technology Accessi

  3. Slide 3: The Current Overview and Immediate Initiatives

    Financial Results 1st Quarter Mar/2021 THE CURRENT OVERVIEW AND IMMEDIATE INITIATIVES NEAR FUTURE INITIATIVES TOWARD THE NEW NORMAL ©Japan Airlines, ALL rights reserved. 3

  4. Slide 4: Overview of Financial Results for 1st Quarter Mar/21

    Overview of Financial Results for 1st Quarter Mar/21  Large drop in revenue due to COVID-19 spread  No interim dividends are paid to secure liquidity at hand as first priority Revenue(1) EBIT (1)(2)/Profit or Loss (1)(3)/EBIT Margin(1)(4) （JPY Bn） （JPY Bn） EBIT Profit or Loss EBIT Margin（EBIT Marg

  5. Slide 5: Consolidated Financial Results for 1st Quarter Mar/21

    (1) Consolidated Financial Results for 1st Quarter Mar/21 1st Quarter 1st Quarter （JPY Bn） Mar/20 Mar/21 Diff. y/y Revenue 348.8​ 76.3 ▲272.4 ▲78.1% International Passenger ​130.6 2.7 ▲127.8 ▲97.9% Domestic Passenger 127.1​ 18.9 ▲108.1 ▲85.1% Cargo / Mail ​22.7 26.5 +3.8 +16.9% Other Revenue (2) 68.

  6. Slide 6: Changes in EBIT (Revenues/Expenses)

    Changes in EBIT（Revenues／Expenses） (1) （JPY Bn） (2) ＋ stands for profit increase (revenue increase, cost decrease) ASK y/y： ▲80.8% ▲ stands for profit decrease (revenue decrease, cost increase) RPK y/y： ▲94.2％ ▲150.9 Bn 19.9 1st Quarter Mar/20 Int’l Passenger ▲131.0 ▲127.8 Other Others(4) Expenses ▲

  7. Slide 7: International/Domestic Passenger Operations

    International/ Domestic Passenger Operations  Capacity was reduced largely as demand falls rapidly in COIVD-19  Domestic demand is gradually coming back in June International Passenger (1) Domestic Passenger (2) (2) Int'l PAX No. Int'l Capacity (2) Dom PAX No. Dom Capacity Dom L/F (2) (Y/Y) Int'l

  8. Slide 8: Cargo / Mail

    Cargo / Mail  Tight supply-demand situation continues as capacity is being reduced worldwide  Cargo flights with passenger aircraft totaled to 3,754 from Apr to Jun  ZIPAIR also started cargo flights on Narita= Bangkok routes from Jun  Revenue exceeded previous year (+17% yoy)due to price increa

  9. Slide 9: Major Operating Expense Items

    (1) Major Operating Expense Items  Revenue- and capacity-linked costs decrease as approximately 40% of revenue reduction (108.4 Bn JPY)  Fixed cost also steadily decreases more than estimated （Details on P.18） 1st Quarter 1st Quarter （JPY Bn） Diff. y/y Mar/20 Mar/21 Revenue 348.8 76.3 ▲272.4 ▲78.1

  10. Slide 10: Liquidity at hand

    Liquidity at hand  394.3 Bn JPY Liquidity at hand remains as of the end of June by prompt capital-raising and reduction of capital expenditure  Total capital-raising reached to appx. 500 Bn JPY level with unused credit line since Feb  Cash burn rate is decreasing as cancelled tickets are decrease

  11. Slide 11: Summary of Consolidated Statement of Financial Position and Cash Flow

    Summary of Consolidated Statement of Financial Position and Cash Flow(1)  The 394.3 Bn JPY of Cash and 200 Bn JPY of Credit Line make our long-term fund BS enough, while the repayment within one year remains at 50.7 Bn JPY  D/E Ratio is still at a sound level in spite of the increased interest-bea

  12. Slide 12: Near Future Initiatives

    Financial Results 1st Quarter Mar/2021 THE CURRENT OVERVIEW AND IMMEDIATE INITIATIVES NEAR FUTURE INITIATIVES TOWARD THE NEW NORMAL ©Japan Airlines, ALL rights reserved. 12

  13. Slide 13: Current Outlook (COVID-19 Impact)

    Current Outlook（COVID-19 Impact)  International Passenger Business remains unchanged due to travel restrictions  Domestic Passenger Business recovers as leisure demand in addition to business demand gradually recovers to a 75% yoy level in capacity International Passenger (1)(2) Domestic Passenger

  14. Slide 14: Safety and Comfort

    Safety and Comfort Appeal of Flysafe Environment  In-cabin air is replaced in two to three Cabin in Cabin minutes  Air flows from top to bottom In-cabin Air Flow Image  Passengers do not get on/off during cruise  Passengers face to the same direction  HEPA Filter is equipped HEPA Filter HEPA HE

  15. Slide 15: Contribution as Social Infrastructure

    Contribution as Social Infrastructure Supports logistic network 医薬品写真待ち Domestic chartered flights for Cabin loading of Special containers with increasing parcel demand medical supplies temperature control for pharmaceuticals Chartered rescue flights Social Engagement Completes social roles by provi

  16. Slide 16: Toward the New Normal

    Financial Results 1st Quarter Mar/2021 THE CURRENT OVERVIEW AND IMMEDIATE INITIATIVES NEAR FUTURE INITIATIVES TOWARD THE NEW NORMAL ©Japan Airlines, ALL rights reserved. 16

  17. Slide 17: To Recover Demand

    To Recover Demand Immediate 2 nd Half of FY20 FY21 or later “Go To Travel Campaign” Promotion Ease of Travel Restriction External Environments COVID-19 Testing Expansion through Establishment of PCR Testing Center Mid- & Long-haul LCC ZIPAIR Starts to Operate to Bangkok(※) ・Seoul (※)・Honolulu ※ star

  18. Slide 18: Cost and CAPEX Reduction Initiatives

    Cost and CAPEX Reduction Initiatives Cost Reduction CAPEX Reduction The revenue- and capacity-linked costs were Total 80 Bn JPY reduction is aimed by steadily reduced by40% of a rev. reduction level adding 30 Bn JPY more to the previous (108.4 Bn JPY reduction from Apr to Jun (1) ), forecast of 50 B

  19. Slide 19: Future Demand Scenarios

    Future Demand Scenarios The consolidated financial results forecast for Mar/21 cannot be provided at this moment but will be provided as soon as the COVID-19 effect becomes foreseeable For references, some demand and revenue scenarios and their impact on profits are shown as below Int’l Pax Demand

  20. Slide 20: Toward the New Normal

    Financial Results 1st Quarter Mar/2021 THE CURRENT OVERVIEW AND IMMEDIATE INITIATIVES NEAR FUTURE INITIATIVES TOWARD THE NEW NORMAL ©Japan Airlines, ALL rights reserved. 20

  21. Slide 21: Toward the New Normal ①

    Toward the New Normal① Changes in Business Environments Industry Society JAL Group  New Normal and Work Style  Slow Recovery on  Increase of interest-bearing Reform International Travel Debts  Changes in Society and the  Changes in Business Demand Local Economy  Industry Reform  Environmental

  22. Slide 22: Toward the New Normal ②

    Toward the New Normal ② JAL’s Measures Reconstruction of a firm Improve Safety and Accelerated Initiatives financial Structure Comfort Measures for Social Issues facing  Heightened hygiene standards Society  Structural Reform and promoting minimal contact  Measures for Environmental • Fixed cost

  23. Slide 23: References

    REFERENCES ©Japan Airlines, ALL rights reserved. 23

  24. Slide 24: Revenue of International Routes by Geographic Segment

    《Reference》 Revenue of International Routes by Geographic Segment Passenger Revenue Revenue Passengers Carried (1) (2) y/y Component Ratio (‘000) 1Q Mar/20 1Q Mar/21 y/y (%) 1Q Mar/21 1Q Mar/20 1Q Mar/21 America 399 8 ▲97.8% America ▲98.4％ 29% 22% Europe 195 3 ▲98.1% Europe ▲97.3% 16% 21% Asia/Ocean

  25. Slide 25: Number of Aircraft

    《 Reference 》 Number of Aircraft End of Mar/20 End of 1st Quarter Mar/20 (March 31, 2020) (June 30, 2020) Diff. Owned Leased Total Owned Leased Total Airbus A350-900 4 1 5 2 4 6 +1 Boeing 777-200 11 0 11 11 0 11 - Boeing 777-200ER 11 0 11 11 0 11 - Boeing 777-300 4 0 4 4 0 4 - Boeing 777-300ER 13 0

  26. Slide 26: Major Changes by IFRS Adoption

    《Reference》 Major Changes by IFRS Adoption Profit/Loss Statement  Due to changes in accounting rules for mileage points, revenue allocated to mileage points is deferred as a liability, and recognized when miles are redeemed (The impacts to Profit/loss are limited)  Our main index for performance w

  27. Slide 27: Fly into tomorrow.

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

  28. Slide 28: 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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