Slide 1: Financial Results 1st Quarter Mar/2017 (FY2016)
JAPAN AIRLINES Co., Ltd. Financial Results 1st Quarter Mar/2017（FY2016） July 29, 2016
Slide 2: Today's Topics
Today’s Topics P.1 P.2 P.13 From the first quarter of this fiscal year, figures for Revenue Passengers Carried, ASK, RPK and Load Factor include “Marketing Carriers’ on code- sharing flights operated by JAL”. The year-earlier first quarter also shows the figures after reflecting this change.
Slide 3: Overview of Financial Results for 1st Quarter Mar/2017
Overview of Financial Results for 1st Quarter Mar/2017 Operating Revenue Operating Profit （OP Margin） （JPY Bn） （JPY Bn） 340 50 20% ▲14.8Bn ▲14.1Bn （▲4.8%） 36.2 （▲39.1%） 15% 312.0 300 297.2 22.0 25 10% 11.6% 7.4% 5% 260 1st Quarter 1st Quarter 0 0% FY Mar/16 FY Mar/17 1st Quarter 1st Quarter FY Mar/1
Slide 4: Consolidated Financial Results
Consolidated Financial Results Consolidated Financial Results 1st Quarter FY Mar/17 1st Quarter 1st Quarter Operating revenue was 297.2 （JPY Bn） y/y FY Mar/16 FY Mar/17 billion yen, ▲4.8% y/y. Operating Revenue 312.0 297.2 ▲4.8% Air Transportation Segment 282.4 268.3 ▲5.0% Operating Expense 275.7
Slide 5: Changes in Operating Profit
Changes in Operating Profit 1st Quarter FY Mar/17 ▲14.1Bn (JPY Bn) (▲39.1%) Impact From Currency Market +2.9Bn Revenue ▲3.7Bn Cost +6.6Bn Fuel +3.3Bn Ex. Fuel +3.3Bn ASK y/y ： ▲0.3% RPK y/y ： ▲0.3% Int’l Passenger Maintenance Domestic Fuel ▲2.6 Aircraft Personnel ▲9.9 Passenger ▲0.2 ▲6.3 Other Cost
Slide 6: International Passenger Operations (Operating Results)
International Passenger Operations (Operating Results) International Passenger 1st Quarter 1st Quarter y/y Passenger Revenue was 99.5 FY Mar/16 FY Mar/17 billion yen, declined 9.9 billion Passenger Revenue (JPY Bn) 109.4 99.5 ▲9.1% yen y/y basis. ASK was up 1.2% y/y and RPK ASK (MN seat km) 12,5
Slide 7: International Passenger Operations (Change in Revenue)
International Passenger Operations (Change in Revenue) 1st Quarter FY Mar/17 ▲9.9Bn Net unit price improved through (JPY Bn) (▲9.1%) revenue management and the expansion of JAL SKY SUITE 109.4 operated routes, but the impact of fuel surcharge revenue decrease ▲7.8 and the stronger yen caused a 99.
Slide 8: Domestic Passenger Operations (Operating Results)
Domestic Passenger Operations (Operating Results) Domestic Passenger 1st Quarter 1st Quarter Passenger revenue was y/y FY Mar/16 FY Mar/17 109.4 billion yen, down 0.4 billion yen y/y. Passenger Revenue 109.9 109.4 ▲0.4% (JPY Bn) ASK (MN seat km) 8,973 8,743 ▲2.6% ASK was ▲2.6% y/y while RPK was
Slide 9: Domestic Passenger Operations (Change in Revenue)
Domestic Passenger Operations (Change in Revenue) 1st Quarter FY Mar/17 (JPY Bn) ▲0.4Bn Changes in customer mix (▲0.4%) ・Reputable JAL SKY NEXT ・Increase in individual passengers ・Decrease in group passengers 109.9 +0.6 due to the Kumamoto Earthquakes ▲1.0 109.4 Increase in passengers through de
Slide 10: Major Operating Expense Items
Major Operating Expense Items Operating Expenses 1st Quarter 1st Quarter Despite lower fuel costs due to the stronger (JPY Bn) Difference y/y FY Mar/16 FY Mar/17 yen and lower fuel prices, maintenance and Fuel 59.9 49.3 ▲10.5 ▲17.6% personnel costs increased, resulting in operating expenses of 275
Slide 11: Impact of Fuel and FX Markets
Impact of Fuel and FX Markets Hedging Ratio for Fuel Costs Transition of Fuel Cost by Factors (as of end of June 2016) (JPY Bn) 70 100% FUEL FX Market Volume 80% 60 loaded / Approx. 59.9 Hedging, etc. 60% Approx. ▲13.7 50% 50 FX 40% +6.5 40% Approx. ▲3.3 Approx. 40 49.3 20% ▲10.5Bn 20% 15% Approx.Ap
Slide 12: Major Balance Sheet Items
Major Balance Sheet Items Consolidated Balance Sheet Summary as of end of 1st Quarter FY Mar/17 End of End of FY 1st Quarter (JPY Bn) Mar/16 Difference The balance of interest- FY Mar/17 2016/3/31 bearing debt decreased by 2016/6/30 12.8 billion yen to 79.8 Total Assets 1,578.9 1,554.2 ▲24.6 billi
Slide 13: Major Cash Flow Items
Major Cash Flow Items (JPY Bn) 1st Quarter FY Mar/16 1st Quarter FY Mar/17 Difference Net Income Before Income Taxes and Non-controlling Interests 39.1 20.2 ▲18.8 Depreciation and Amortization 21.5 23.4 +1.9 Other 29.6 17.2 ▲12.4 Cash Flow from Operating Activities 90.3 60.9 ▲29.4 Capital Expenditur
Slide 14: Further actions to take to accomplish financial target
Further actions to take to accomplish financial target Aim to reach our target of Operating Profit through pursuing Divisional Profitability Management System Outline Operating 1st Quarter July Further actions to take Profit FY Mar/17 (Estimate) （Result） a. Increase entrusted ground handling a. Revi
Slide 15: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations, Japan Airlines
Slide 16: References: Operating Results for International Passenger by Major Routes
《References》 Operating Results for International Passenger by Major Routes Passenger Revenue Passengers y/y Proportion of whole Int’l (‘000) 1Q FY Mar/16 1Q FY Mar/17 y/y (%) 1Q FY Mar/17 1Q FY Mar/16 1Q FY Mar/17 America 271 291 +7.5% America ▲0.9% 24% 27% Europe 158 159 +0.5% Europe ▲11.9% 16% 15%
Slide 17: Reference: Number of Aircraft
《Reference》 Number of Aircraft End of Mar/2016 End of Jun/2016 Difference Owned Leased Total Owned Leased Total Boeing 777-200 12 0 12 12 0 12 - Boeing 777-200ER 11 0 11 11 0 11 - Boeing 777-300 4 0 4 4 0 4 - Boeing 777-300ER 13 0 13 13 0 13 - Large-sized Total 40 0 40 40 0 40 - Boeing 787-8 23 0 23
Slide 18: Mar/2017 Earnings Forecast (Consolidated)
- No change from that published Mar/2017 Earnings Forecast (Consolidated) on April 28, 2016 Consolidated Financial Results Operational Preconditions Mar/2016 Mar/2017 Mar/2016 Mar/2017 (JPY Bn) difference y/y Results Forecast Results Forecast Revenue 1,336.6 1,343.0 +6.3 +0.5% ASK* Int’l +1.3% ▲0.6%
Slide 19: Disclaimer
Disclaimer 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 cre