Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — Q3 FY3/2013 Earnings Presentation

28 slides from Japan Airlines's earnings presentation, February 2013

  1. Slide 1: Financial Results Third Quarter FY3/2013 (FY2012)

    Financial Results Third Quarter FY3/2013 (FY2012)

  2. Slide 2: Table of Contents

    Table of Contents Overview of 3Q FY3/13 (3Q FY12) Financial FY3/13 (FY12) Earnings & Operating Forecast Results • Consolidated Results P.18 • Highlights of 3Q FY3/13 Financial Results P.3 • Change of Consolidated Operating Profit Forecast P.19 • Revision of Consolidated Financial Forecast for P.4 •

  3. Slide 3: Overview of 3Q FY3/13 (3Q FY12) Financial Results

    Overview of 3Q FY3/13 (3Q FY12) Financial Results

  4. Slide 4: Highlights of 3Q FY3/13 Financial Results

    Highlights of 3Q FY3/13 Financial Results  Operating profit for 3Q FY3/13 is JPY 158.1Bn (Y/Y -2.2%). Operating margin remains high.  Our financial position is strong and the equity ratio reached 44.8% Total Revenue Operating Profit （JPY Bn） （JPY Bn） Margin 909.1 942.0 17.8% 16.8% 1,000 200 20% 80

  5. Slide 5: Revision of Consolidated Financial Forecast for FY3/13

    Revision of Consolidated Financial Forecast for FY3/13 Upward Revision of Operating Profit Forecast (JPY Bn) Margin 15.1％ Margin +JPY21.0Bn Margin 13.6％ (＋12.7%) 12.3％ +JPY15.0Bn (＋10.0%) 186 165 150 Target in IPO of FY12 Previous Forecast New Forecast (announced 2012/11/2) 4

  6. Slide 6: Dividend Policy for Fiscal Year Ending March 2013

    Dividend Policy for Fiscal Year Ending March 2013 Revision of Dividend Payout Ratio  To uphold our basic policy of proactively distributing benefits to shareholders, we have revised the dividend ratio from approx.15% to approx.20%.  To achieve the equity ratio target of 50%, we will improve our sh

  7. Slide 7: JAL's Suspension of 787 Operations

    JAL’s Suspension of 787 Operations  We suspended the use of 787 aircraft （total 7 aircraft）from January 16.  We are operating flights using alternative aircraft. Recent measures Future measures 【Temporarily suspended】  On current 787 routes Route Period Weekly flights • Continue operations using

  8. Slide 8: Details of 3Q FY3/13 (3Q FY12) Financial Results

    Details of 3Q FY3/13 (3Q FY12) Financial Results

  9. Slide 9: Overview of Consolidated Financial Results

    Overview of Consolidated Financial Results  Revenue of JPY 942.0Bn and operating profit of JPY 158.1Bn  Operating profit margin of 16.8% 3Q FY3/13 (JPY Bn) 3Q FY3/12 3Q FY3/13 % Y/Y % Y/Y (OCT-DEC)(1) Revenue 909.1 942.0 +3.6% 307.8 ▲0.5% Air Transportation Segment 816.9 843.0 +3.2% 275.3 ▲0.8% Op

  10. Slide 10: Increased / Decreased Elements of Operating Profit

    Increased / Decreased Elements of Operating Profit 3Q FY3/2013 ASK Y/Y： +4.3% RPK Y/Y：+10.8% Progress of Cost Improvement （JPY Bn） （JPY Bn） Other Minimized costs by expanding the Revenues Fuel Domestic Int’l Divisional Profitability Management Passenger Cargo +4.6% ▲7.6% Operation System Internation

  11. Slide 11: International Passenger Operations (Operating Results)

    International Passenger Operations (Operating Results) 3Q FY3/13 International Passenger 3Q FY3/12 3Q FY3/13 % Y/Y % Y/Y (OCT-DEC) Passenger Revenue (JPY Bn) 288.9 308.3 +6.7% 98.0 ▲0.1% Passengers (’000) 4,971 5,618 +13.0% 1,840 +4.5% RPK (MM passengers-km) 22,067 25,430 +15.2% 8,578 +11.8% ASK (MM

  12. Slide 12: International Passenger Operations (Increased / Decreased Elements of Passenger Revenue)

    International Passenger Operations (Increased / Decreased Elements of Passenger Revenue) 3Q FY3/2013  As the number of passengers increased, passenger revenue rose by JPY 19.3Bn Y/Y at 3Q FY3/13 +JPY19.3Bn (+6.7%)  Strong demand on medium and 308.3 long haul flights ＜L/F＞ This FY （FY3/12） North Am

  13. Slide 13: Domestic Passenger Operations (Operating Results)

    Domestic Passenger Operations (Operating Results) 3Q FY3/13 Domestic Passenger 3Q FY3/12 3Q FY3/13 % Y/Y % Y/Y (OCT-DEC) Passenger Revenue (JPY Bn) 367.2 373.4 +1.7% 123.0 ▲0.7% Passengers (’000) 21,839 22,946 +5.1% 7,719 +0.7% RPK (MM passengers-km) 16,748 17,579 +5.0% 5,889 ▲0.1% ASK (MM seats-km)

  14. Slide 14: Domestic Passenger Operations (Increased / Decreased Elements of Passenger Revenue)

    Domestic Passenger Operations (Increased / Decreased Elements of Passenger Revenue) 3Q FY3/2013  Revenue increased by JPY 6.2Bn due to an increase in passengers +JPY6.2Bn  Increased flights offering First Class, expanded (+1.7%) service to HND=Okinawa 373.4 routes 367.2  Increased Class J seats +

  15. Slide 15: Major Operating Expense Items

    Major Operating Expense Items Breakdown of Operating Expense 3Q FY3/13 (JPY Bn) 3Q FY3/12 3Q FY3/13 % Y/Y % Y/Y (OCT-DEC) (1) Fuel 172.4 185.6 +7.6% 61.4 +4.9% Landing fees and other rent 53.4 56.6 +5.9% 18.6 +1.9% Maintenance 18.3 23.6 +29.1% 8.7 +24.9% Sales Commissions 16.9 15.3 ▲9.1% 5.1 ▲12.6%

  16. Slide 16: Major Balance Sheet Items

    Major Balance Sheet Items  The balance of interest-bearing debt is JPY 175.1Bn after repayment  Shareholders' equity ratio increased by 9.1pt to 44.8%. End of FY3/12 End of 3Q FY3/13 (JPY Bn) Difference 2012/3/31 2012/12/31 Total Assets 1,087.6 1,176.8 +89.2 Cash and Deposits 272.4 317.4 +45.0 Bal

  17. Slide 17: Major Cash Flow Items

    Major Cash Flow Items (JPY Bn) 1H FY3/12 1H FY3/13 Difference Net income before income taxes and 161.2 154.0 ▲7.2 minority interests Depreciation 62.4 61.6 ▲ 0.8 Other ▲33.0 ▲16.7 +16.3 Cash Flow from Operating Activities 190.7 198.9 +8.2 Capital Expenditure (1) ▲81.0 ▲110.6 ▲29.5 Other 30.6 ▲1.0 ▲3

  18. Slide 18: FY3/13 (3Q FY12) Earnings & Operating Forecast

    Click to edit Master title style FY3/13 (3Q FY12) Earnings & Operating Forecast

  19. Slide 19: FY3/13 Earnings Forecast (Consolidated Results)

    FY3/13 Earnings Forecast (Consolidated Results) FY3/13 Previous (JPY Bn) FY3/12 Actual FY3/13 New Forecast Difference Forecast Revenue 1,204.8 1,228.0 1,215.0 +13 Operating Expense 999.8 1,042.0 1,050.0 ▲8 Operating Profit 204.9 186.0 165.0 +21 Ordinary Income 197.6 177.0 155.0 +22 Net Income 186.6

  20. Slide 20: Change of Consolidated Operating Profit Forecast

    Change of Consolidated Operating Profit Forecast  Operating Profit improved by JPY 21Bn from the previous announcement → Upward adjustment from JPY 165Bn to JPY 186Bn  Revenue increased by JPY 13Bn , fuel cost decreased by JPY 4Bn and other expenses are expected to decrease by JPY 4Bn Cost cut 186

  21. Slide 21: FY3/13 Earnings Forecast (Consolidated Balance Sheets / Cash Flow)

    FY3/13 Earnings Forecast (Consolidated Balance Sheets / Cash Flow) Consolidated Balance Sheet (JPY Bn) End of FY3/12 Actual FY3/13 New Forecast FY3/13 Old Forecast Difference Total Assets 1,087.6 1,190.0 1,174.0 +16 Interest-bearing Debt 208.4 159.0 175.0 ▲16 Shareholders' Equity 388.5 544.0 521.0 +

  22. Slide 22: Supplemental Reference

    Click to edit Master title style Supplemental Reference

  23. Slide 23: Revenue of International Routes by Geographic Segment

    《Supplemental Reference》 Revenue of International Routes by Geographic Segment Passenger Revenue (% of the whole int’l routes) Passengers 3Q FY3/13 (%) 3Q FY3/12 3Q FY3/13 Y/Y 3Q FY3/13 Y/Y (’000) 3Q FY3/12 3Q FY3/13 Y/Y Y/Y (OCT-DEC) (OCT-DEC) Pacific Routes 32.5% 34.0% +1.5pt 34.5% +2.5pt Pacific

  24. Slide 24: FY3/13 Operating Forecast (Air Transportation Business)

    FY3/13 Operating Forecast (Air Transportation Business) International Passenger Domestic Passenger 1H FY3/13 2H FY3/13 FY3/13 New 1H FY3/13 2H FY3/13 FY3/13 New (Y/Y basis) Actual Forecast Forecast Actual Forecast Forecast ASK +4.5% +4.7% +4.6% +7.6% ▲1.1% +3.1% RPK +17.1% +5.5% +11.0% +7.7% ▲1.3% +

  25. Slide 25: Number of Aircraft in Service

    《Supplemental Reference》 Number of Aircraft in Service Number of Aircraft Used by the JAL Group End of FY3/12 End of 3Q FY3/13 2012/3/31 2012/12/31 Increase/ Decrease Owned Leased Total Owned Leased Total Boeing 777-200 15 0 15 15 0 15 -- Boeing 777-200ER 11 0 11 11 0 11 -- Boeing 777-300 7 0 7 7 0

  26. Slide 26: Updated Information on Route/Frequency Plan

    《Reference》 Updated Information on Route/Frequency Plan International Routes Domestic Routes 【Flight suspension】 【New Routes】 Change (round-trip) Route Change (round-trip) Date of Commencement Route Period Effective Aircraft HND-Chubu 0 –> 1 /day 31 Mar 2013– 4 flights/wk –> 0 Narita=Helsinki 25 Feb

  27. Slide 27: Contact

    Contact Thank you for your attention! For any inquiries regarding this presentation, please contact the following Japan Airlines Financing and Accounting Office Phone： 81-3-5460-3068

  28. Slide 28: Important Information Regarding the Presentation

    Important Information Regarding the Presentation 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

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