Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — Q1 FY2023 Earnings Presentation

24 slides from Japan Airlines's earnings presentation, Aug 1, 2023

  1. Slide 1: Financial Results 1st Quarter Mar/2024 (FY2023)

    JAPAN AIRLINES Co., Ltd. Financial Results 1st Quarter Mar/2024（FY2023） Outdoor advertisement posted at Keikyu Haneda Airport Terminal 3 from March 29, 2023 August 1, 2023 ©Japan Airlines, ALL rights reserved.

  2. Slide 2: Agenda

    SKYTRAX SKYTRAX SKYTRAX APEX 2023 Covid-19 Safety World Airline Star Health Safety Powered Rating World's Best Economy Class Rating by SimpliFlying Audit 5-Star Best Economy Class Airline seat 5-Star Diamond 1. PERFORMANCE OVERVIEW FOR FY23Q1 APEX APEX 2. RECENT TOPICS WORLD CLASS FIVE STAR 3. DETAI

  3. Slide 3: Performance Overview for FY2023Q1

    Performance Overview for FY2023Q1 ✔ Increased revenue/profit through steadily capturing the recovering passenger demand Revenue EBIT (1) / Profit or Loss (2) +32.6 Bn (3) (JPY Bn) (JPY Bn) (+9.4%) +112.5 Bn (+41.9%) Fuel/FX Markets Operational Preconditions/ASK FY22Q1 FY23Q1 y/y Vs. FY22Q1 Singapore K

  4. Slide 4: FY2023Q1 Performance by Business Domain

    FY2023Q1 Performance by Business Domain ✔ Revenue and EBIT improved significantly from recovering passenger demand ✔ Cargo maintains revenue above pre-pandemic levels despite a decrease ✔ LCC’s EBIT improved. Mileage, Lifestyle and Infrastructure increased its EBIT Revenue by Business Domain EBIT by

  5. Slide 5: Recent Topics

    1. PERFORMANCE OVERVIEW FOR FY23Q1 2. RECENT TOPICS 3. DETAILS OF FINANCIAL RESULTS FOR FY23Q1 4. REFERENCES ©Japan Airlines, ALL rights reserved. 5

  6. Slide 6: Recent Topics

    RECENT TOPICS Full Service Carrier LCC Expansion of Network ZIPAIR started service on the San Francisco route in June and the Manila route in July! International Route ■ Expanded to 3 routes ■ Load Factor is increasing ■ Haneda - Dalian route began service in July 2023 for US West Coast ■ Haneda - D

  7. Slide 7: Details of Financial Results for FY23Q1

    1. PERFORMANCE OVERVIEW FOR FY23Q1 2. RECENT TOPICS 3. DETAILS OF FINANCIAL RESULTS FOR FY23Q1 4. REFERENCES ©Japan Airlines, ALL rights reserved. 7

  8. Slide 8: Consolidated Financial Results

    Details of financial results for FY2023Q1 Consolidated Financial Results Vs. FY19Q1 Vs. FY22Q1 FY19Q1 FY22Q1 FY23Q1 Diff. y/y Diff. y/y Revenue 348.8 268.8 381.4 +32.6 +9.4% +112.5 +41.9% Full Service Carrier 284.3 218.4 308.1 +23.8 +8.4% +89.7 +41.1% International PAX 130.6 62.4 147.5 +16.9 +12.9% +85

  9. Slide 9: Changes in EBIT (Revenues/Expenses)

    Details of financial results for FY2023Q1 Changes in EBIT (Revenues／Expenses) + stands for profit increase（ revenue increase, cost decrease ) RPK y/y ： +75.2% ▼ stands for profit decrease ( revenue decrease, cost increase ) ASK y/y ： +36.8% ＋58.9 Bn Domestic Cargo/ Mileage, （JPY Bn） Passenger Mail Life

  10. Slide 10: Changes in EBIT (Market and other impact)

    Details of financial results for FY2023Q1 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 ＋58.9 Bn Currency Market ▼5.1 Bn (Excl. Market Impact) Revenue +5.3 Bn Rev

  11. Slide 11: Int'l & Domestic Passenger Operations (Full Service Carrier)

    Details of financial results for FY2023Q1 Int’l & Domestic Passenger Operations (Full Service Carrier) ✔ Int’l PAX: Strong demand for Japan-bound flights, recovery seen for flights from Japan ✔ Domestic PAX: Actively stimulated leisure demand, June’s passengers at pre-pandemic levels Passenger Demand（V

  12. Slide 12: Int'l & Domestic Passenger Operations (Full Service Carrier)

    Details of financial results for FY2023Q1 Int’l & Domestic Passenger Operations (Full Service Carrier) International Passenger FY19Q1 FY22Q1 FY23Q1 Vs. FY19Q1 Vs. FY22Q1 Passenger Revenue (JPY Bn) 130.6 62.4 147.5 +12.9% +136.1% Passengers (’000) 2,429 728 1,571 ▼35.3% +115.6% RPK (MN passenger km) 1

  13. Slide 13: Cargo

    Details of financial results for FY2023Q1 Cargo ✔ International cargo recorded revenue higher than pre-pandemic levels by transportation of high value-added goods through our good transportation quality ✔ Maximized volume particularly between Asia and North America by utilizing both our own and other

  14. Slide 14: LCC

    Details of financial results for FY2023Q1 LCC ✔ ZIPAIR achieved operating profit margins close to 15% through higher rates of aircraft utilization and increased seat number. It has also started service on the San Francisco route in June and the Manila route in July, showing steady growth ZIPAIR SPRING

  15. Slide 15: Expenses

    Details of financial results for FY2023Q1 Expenses ✔ Actual fixed costs for FY23Q1 was 123.1 billion yen, achieved through steady cost control Major Operating Expense Items Vs. FY19Q1 Vs. FY22Q1 （JPY Bn） FY19Q1 FY22Q1 FY23Q1 Diff. y/y Diff. y/y Fuel 63.6 69.8 79.4 +15.7 +24.7% +9.5 ＋13.7% Landing and na

  16. Slide 16: Fuel Costs

    Details of financial results for FY2023Q1 Fuel Costs Changes in fuel costs Hedge Ratio (As of End of Jun./2023) （JPY (JPY Bn) Bn） Hedging Volume Market and others +16.4 ▼28.3 +14.9 79.4 FX 69.8 +6.4 101.8 ＋9.5 Bn (＋13.7%) FY21Q3 FY22Q1 FY23Q1 FY23 FY24 FY25 Fuel Hedging FX Hedging Foreign currency ❏

  17. Slide 17: Balance Sheet and Cash Flow

    Details of financial results for FY2023Q1 Balance Sheet and Cash Flow BS ✔ Equity ratio is 38.9% and Net D/E ratio is x0.0 both in terms of credit rating evaluation basis, kept at a healthy level CF ✔ Cash flow from Operating Activities is 123.6 billion yen, Free Cash Flow is 88.0 billion yen of inflow

  18. Slide 18: References

    1. PERFORMANCE OVERVIEW FOR FY23Q1 2. RECENT TOPICS 3. DETAILS OF FINANCIAL RESULTS FOR FY23Q1 4. REFERENCES ©Japan Airlines, ALL rights reserved. 18

  19. Slide 19: FY2023 Full-Year Performance Forecast

    Details of FY2023 Full-Year Performance Forecast ※From presentation material announced on May 2, 2023 Partial correction has been made (1) 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 Carri

  20. Slide 20: [Reference] 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

  21. Slide 21: [Reference] Operation Performance by Geographic Segment

    [Reference] Operation Performance by Geographic Segment (Full Service Carrier) Passenger Revenue Revenue Passengers Carried FY23Q1 (%） Vs. FY19Q1 Vs. FY22Q1 ('000) FY23Q1 Vs. FY19Q1 Vs. FY22Q1 Component Ratio America 37% +41.6% +108.4% America 393 ▼1.7% +60.1% Europe 16% +17.6% +121.8% Europe 135 ▼3

  22. Slide 22: [Reference] Fleet Information

    [Reference] Fleet Information End of FY22 (March 31, 2023) End of FY23Q1 (June 30, 2023) Diff. Owned Leased Total Owned Leased Total Airbus A350-900 12 4 16 12 4 16 0 Boeing 777-300ER 13 0 13 13 0 13 0 Large Boeing 777-200ER 3 0 3 1 0 1 ▼2 Large-sized Total 28 4 32 26 4 30 ▼2 Boeing 787-9 19 3 22 19

  23. Slide 23: Fly into tomorrow.

    Fly into tomorrow. Finance & Investor Relations Japan Airlines ©Japan Airlines, ALL rights reserved. 23

  24. Slide 24: 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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