Slide 1: Financial Results 1st Half Mar/2023 (FY2022)
JAPAN AIRLINES Co., Ltd. Financial Results 1st Half Mar/2023（FY2022） 「JAL SKY MUSEUM」 received the Kids Design Award 2022 “JAL SKY MUSEUM” received the “Good Design Award” and “Kids Design Award” for 2022 November 1, 2022 ©Japan Airlines, ALL rights reserved.
Slide 2: Agenda and ESG recognition
SKYTRAX SKYTRAX SKYTRAX 2022 Covid-19 Safety World Airline Star SKYTRAX Rating Rating World's Best Economy Class 5-Star 5-Star COVID-19 Excellence Award ※ 1. PERFORMANCE OVERVIEW FOR FY22Q2 APEX APEX APEX WORLD CLASS FIVE STAR Health Safety Powered by SimpliFlying Audit 2. FORECAST FOR FY22 FULL-YEA
Slide 3: Performance Overview for FY22Q2
PERFORMANCE OVERVIEW FOR FY22Q2 ✔ Revenue・EBIT improved and EBIT turned into the black for this first half despite the increase in fuel prices and depreciation of the yen, as the shift toward balancing the infection prevention and socioeconomic activities gained momentum Revenue EBIT (1) / Profit or L
Slide 4: FY22Q2 Performance by Business Domain
FY22Q2 Performance by Business Domain Full Service Carrier LCC LCC Profitability steadily improved and Flight restrictions for China and difficult turned into the black in 2nd quarter environment for dom LCCs continue, but alone with demand at 40% for int’l steady growth for mid-long int’l LCC & 75% fo
Slide 5: Forecast for FY22 Full-Year
1. PERFORMANCE OVERVIEW FOR FY22Q2 2. FORECAST FOR FY22 FULL-YEAR 3. INITIATIVES FOR THE SECOND HALF 4. DETAILS OF FINANCIAL RESULTS FOR FY22Q2 5. REFERENCES ©Japan Airlines, ALL rights reserved. 5
Slide 6: FY22 Full-Year Performance Forecast
FY22 Full-Year Performance Forecast ✔ To reflect the current situation, the forecast for revenue & operating expense is revised, while forecast for EBIT & Profit/Loss remains unchanged ✔ We will strive to achieve the profit forecast through rapid increase in int’l & dom demand and int’l unit revenue, a
Slide 7: Premises of Forecast: Int'l & Domestic Passenger Operations
Premises of Performance Forecast for FY22 Full-year Int’l & Domestic Passenger Operations (FSC) ✔ For Int’l, higher revenue than the initial forecast is expected through significant increase in unit revenue despite lower number of passengers than initial forecast ✔ For Dom, although rapid recovery is
Slide 8: Premises of Forecast: Cargo, Fuel/FX Markets
Premises of Performance Forecast for FY22 Full-year Cargo, Fuel/FX Markets ✔ International cargo is expected to maintain high unit prices and revenues are expected to exceed the initial forecast, despite a loosening supply-demand balance. ✔ FX is set at 145 JPY per USD, fuel at 125 USD per barrel of
Slide 9: Initiatives for the Second Half
1. PERFORMANCE OVERVIEW FOR FY22Q2 2. FORECAST FOR FY22 FULL-YEAR 3. INITIATIVES FOR THE SECOND HALF 4. DETAILS OF FINANCIAL RESULTS FOR FY22Q2 5. REFERENCES ©Japan Airlines, ALL rights reserved. 9
Slide 10: Initiatives for the Second Half
INITIATIVES FOR THE SECOND HALF Full Service Carrier LCC International ZIPAIR ❏ Increase supply for strong N. American routes ❏ Strong sales toward San Jose flights ❏ Strengthen overseas revenue management ❏ Increased flights to capture inbound demand Domestic Spring Japan ❏ Larger aircraft and increa
Slide 11: Details of Financial Results for FY22Q2
1. PERFORMANCE OVERVIEW FOR FY22Q2 2. FORECAST FOR FY22 FULL-YEAR 3. INITIATIVES FOR THE SECOND HALF 4. DETAILS OF FINANCIAL RESULTS FOR FY22Q2 5. REFERENCES ©Japan Airlines, ALL rights reserved. 11
Slide 12: Consolidated Financial Results
DETAILS OF FINANCIAL RESULTS FOR FY22Q2 Consolidated Financial Results 1st Half 2nd Quarter (JPY Bn) Vs. FY19Q2 Vs. FY21Q2 Vs. FY21Q2 FY19Q2 FY21Q2 FY22Q2 Diff. y/y Diff. y/y FY22Q2 Diff. y/y Revenue 748.9 290.6 618.5 ▼130.4 ▼17.4% +327.8 +112.8% 349.6 +192.0 +121.8% Full Service Carrier 612.2 219.1 50
Slide 13: Changes in EBIT (Revenues/Expenses)
DETAILS OF FINANCIAL RESULTS FOR FY22Q2 Changes in EBIT (Revenues／Expenses) + stands for profit increase（ revenue increase, cost decrease ) RPK y/y ： +227.7% ▼ stands for profit decrease ( revenue decrease, cost increase ) ASK y/y ： +64.6% ＋152.2 Bn （JPY Bn） Mileage, Lifestyle and Infrastructure and o
Slide 14: Changes in EBIT (Market and other impact)
DETAILS OF FINANCIAL RESULTS FOR FY22Q2 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 ＋152.2 Bn Currency Market ▼24.3 Bn (Excl. Market Impact) Revenue +19.8 Bn
Slide 15: Int'l & Domestic Passenger Operations (Full Service Carrier)
DETAILS OF FINANCIAL RESULTS FOR FY22Q2 Int’l & Domestic Passenger Operations (Full Service Carrier) 1st Half 2nd Quarter International Passenger FY19Q2 FY21Q2 FY22Q2 Vs. FY19Q2 Vs. FY21Q2 FY22Q2 Vs. FY21Q2 Passenger Revenue (JPY Bn) 272.9 29.1 163.2 ▼40.2% +460.3% 100.7 +462.4% Passengers (’000) 4,
Slide 16: Cargo
DETAILS OF FINANCIAL RESULTS FOR FY22Q2 Cargo 1st Half 2nd Quarter International Cargo FY19Q2 FY21Q2 FY22Q2 Vs. FY19Q2 Vs. FY21Q2 FY22Q2 Vs. FY21Q2 Cargo Revenue (JPY Bn) 29.7 80.8 109.0 +267.2% +35.0% 52.1 +24.3% Available Ton Km (MN ton km) 2,233 1,616 1,857 ▼16.8% +14.9% 962 +16.1% Revenue Ton Km
Slide 17: LCC
DETAILS OF FINANCIAL RESULTS FOR FY22Q2 LCC ZIPAIR Spring Japan (1) LCC 1st Half 2nd Quarter 1st Half 2nd Quarter FY21Q2 FY22Q2 Vs. FY21Q2 FY22Q2 Vs. FY21Q2 FY22Q2 FY22Q2 Vs. FY21Q2 Passenger Revenue（JPY Bn） 0.1 7.4 - 5.3 - 3.6 2.4 +252.5% Passengers（’000） 5 162 - 109 - 208 165 +617.7% RPK（MN passen
Slide 18: Expenses
DETAILS OF FINANCIAL RESULTS FOR FY22Q2 Expenses ✔ Actual fixed cost for FY22Q2 was 244.6 billion yen. Further cost control will be conducted to suppress increase in costs by the market & cut costs below the annual target of 500 bil. Major Operating Expense Items 1st Half 2nd Quarter （JPY Bn） Vs. FY1
Slide 19: Fuel Costs
DETAILS OF FINANCIAL RESULTS FOR FY22Q2 Fuel Costs Changes in fuel costs Hedge Ratio (As of End of Oct/2022) (JPY Bn) FX Market 29.0 +72.3 154.8 Volume Hedging increase and others 45% 45% +31.5 ▼37.1 58.9 ＋95.8 Bn 20% 20% 9% 9% (＋162.5%) FY21Q2 FY22Q2 FY22 FY23 FY24 Fuel Hedging FX Hedging Foreign c
Slide 20: Balance Sheet and Cash Flow
DETAILS OF FINANCIAL RESULTS FOR FY22Q2 Balance Sheet and Cash Flow BS ✔ Equity ratio is 39.0% and Net D/E ratio is x0.2 both in terms of credit evaluation basis, keeping a healthy level ✔ Cash flow from operating activities is 120.2 billion yen, Free cash flow is 67.7 CF billion yen of inflow, improvi
Slide 21: References
1. PERFORMANCE OVERVIEW FOR FY22Q2 2. FORECAST FOR FY22 FULL-YEAR 3. INITIATIVES FOR THE SECOND HALF 4. DETAILS OF FINANCIAL RESULTS FOR FY22Q2 5. REFERENCES ©Japan Airlines, ALL rights reserved. 21
Slide 22: Operation Performance by Geographic Segment (Full Service Carrier)
[Reference] Operation Performance by Geographic Segment (Full Service Carrier) Passenger Revenue Revenue Passengers Carried 1st Half 2nd Quarter 1st Half 2nd Quarter ('000) (%） FY22Q2 FY22Q2 FY22Q2 Vs. FY19Q2 Vs. FY21Q2 FY22Q2 Vs. FY21Q2 Component Ratio Vs. FY19Q2 Vs. FY21Q2 Component Ratio Vs. FY21
Slide 23: Fleet Information
[Reference] Fleet Information End of FY21 (March 31, 2022) End of FY22Q2 (September 30, 2022) Diff. Total2 Total2 Total2 of Retired Retired Sep/22 Owened Leased Total1 AircraftExcluded Owened Leased Total1 AircraftExcluded - Mar/22 Airbus A350-900 11 4 15 15 12 4 16 16 +1 Boeing 777-300ER 13 0 (1) 13
Slide 24: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations Japan Airlines ©Japan Airlines, ALL rights reserved. 24
Slide 25: 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