Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q3 FY2018 Earnings Presentation
25 slides from Japan Airlines's earnings presentation, Jan 31, 2019
Slide 1: Financial Results 3rd Quarter Mar/2019 (FY2018)
JAPAN AIRLINES Co., Ltd. Financial Results 3 rd Quarter Mar/2019（FY2018） January 31, 2019
Slide 2: Today's Topics
Today’s Topics P.1 P.3 P.5 P.17 ※The Award for Passenger Service System Project (Note) Regarding figures in tables of this material, amounts are rounded down to the nearest hundred million yen, and the second decimal point in ratios is rounded off to one decimal point.
Slide 3: Overview of Financial Results for 3rd Quarter Mar/19
Overview of Financial Results for 3rd Quarter Mar/19 Achieved profit growth with growing revenue by capturing passenger demand through capacity expansion and the new system Operating Revenue Operating profit・Net profit （ JPY Bn ） （Operating Profit Margin） 200 25% （ JPY Bn ） +85.0Bn Operating Net O
Slide 4: Recent Topics
Recent Topics Take thorough actions to rebuild our safety management system based on the Business Improvement Order Pursue greater convenience & comfort for customers through enhanced networks and new aircraft Contribute to society through challenges to stay one step ahead in creating values t
Slide 5: FY2018 Earnings Forecast
FY2018 Earnings Forecast Raised operating profit forecast to 175 billion yen, resulting in profit growth, taking into account Q3 results, recent fuel prices and revenue forecasts FY2017 FY2018 Diff. Forecast （JPY Bn） Previous New (Y/Y) Diff. Results (1 Forecast ) Forecast Fuel /FX Markets Operatin
Slide 6: Revised Consolidated Financial Forecast for Mar/19 (Change in Operating Profit)
Revised Consolidated Financial Forecast for Mar/19（Change in Operating profit） (JPY Bn) ＋ stands for profit increase (revenue increase, cost reduction) ▲ stands for profit decrease (revenue decrease, cost increase) 【Revenues ／ Expenses】 ＋8.0Bn (＋4.8%) Fuel Ex. Fuel Int’l Domestic Other ▲4.0 Passenge
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Slide 8: Consolidated Financial Results
Consolidated Financial Results Consolidated Financial Results 3 rd Quarter Mar/19 3Q 3Q 3rd Quarter （JPY Bn） Diff. y/y ratio Diff. y/y ratio FY2017 FY2018 (Oct-Dec)(5) Operating Revenue 1,046.0 1,131.0 +85.0 +8.1% 380.8 +27.1 +7.7% Air Transportation Segment 950.5 1,032.1 +81.5 +8.6% 349.2 +26.0 +8.
Slide 9: Changes in Operating Profit (Revenues / Expenses)
Changes in Operating Profit（ Revenues ／ Expenses ） 3 rd Quarter Mar/19 (FY2018) ASK y/y ： +4.1% ＋ stands for profit increase (revenue increase, cost reduction) RPK y/y ： +5.2％ ▲ stands for profit decrease (revenue decrease, cost increase) +0.2Bn （JPY Bn） The effect of the change of the settlement (+
Slide 10: Changes in Operating Profit (Market / Others)
Changes in Operating Profit（ Market ／ Others ） 3 rd Quarter Mar/19 (FY2018) （ JPY Bn ） ＋ stands for profit increase (revenue increase, cost reduction) ▲ stands for profit decrease (revenue decrease, cost increase) Impact from +0.2Bn Currency Market +2.2 Bn (+0.2%) (Excl. Market Impact) Revenue ▲0.3B
Slide 11: International Passenger Operations
International Passenger Operations International Passenger Change in Revenue 3Q 3Q 3rd Quarter （JPY Bn） +57.0Bn y/y ratio y/y ratio FY2017 FY2018 (Oct-Dec)(5) （+16.5％） Passenger Revenue 403.4 +16.5% 134.2 +14.6% (JPY Bn) 346.4 ・Flight cancellation due (399.0) (+15.2%) (132.6) (+13.3%) to typhoons an
Slide 12: Domestic Passenger Operations
Domestic Passenger Operations Domestic Passenger Change in Revenue 3Q 3Q 3rd Quarter （ JPY Bn ） y/y ratio y/y ratio FY2017 FY2018 (Oct-Dec)(5) Passenger +6.1Bn 404.7 +1.5% 136.5 +2.3% (+1.5%) Revenue(1) 398.5 (JPY Bn) (409.1) (+2.7%) (138.1) (+3.5%) Passengers ・Flight cancellation due (’000) 25,919
Slide 13: The New Passenger Service System
The New Passenger Service System The Effect during FY18 3 rd Quarter The new passenger service system 16 billion yen (estimated as maximum) Main functional Major Improvements International flights：10.0 Bn yen enhancements （Nine months ended December 31, 2017=100) Domestic flights：6.0 Bn yen Revenue
Slide 14: Major Operating Expense Items
Major Operating Expense Items Operating Expenses 3Q 3Q 3rd Quarter (JPY Bn) FY2017 FY2018 Diff. y/y ratio (Oct-Dec)(3) Diff. y/y ratio Fuel 157.9 191.7 +33.7 +21.4% 66.3 +10.3 +18.6% Landing and navigation fees 62.5 64.9 +2.4 +3.8% 21.7 +0.4 +2.2% Maintenance 51.3 55.0 +3.6 +7.1% 18.3 +2.8 +18.3% Sa
Slide 15: 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 December 2018) (JPY Bn) 250 Volume 60% loaded/ Fuel FX Market FX Hedging Approx. Approx. 200 ▲1.4 40% 40% +45.4 ▲10.2 40% Approx. Approx. 150 30% 30% ＋33.7Bn 191.7 100 157.9 (＋21.4%) 20% Appro
Slide 16: Major Balance Sheet Items and Cash Flow Items
Major Balance Sheet Items and Cash Flow Items End of 3rd Balance Sheet End of Quarter Diff. (JPY Bn) Mar/18 Mar/19 Total Assets (1) 1,853.9 1,934.1 +80.1 Cash and Deposits (2) 448.8 460.5 +11.7 Balance of Interest-bearing Debt (3) 125.7 129.4 +3.6 1 Total Assets amount as of the end of March, 2018 h
Slide 17: Revenue of International Routes by Geographic Segment
《 References 》 Revenue of International Routes by Geographic Segment Passenger Revenue 3Q 3Q Component Ratio (%) Cumulative 3Months y/y y/y 3Q Mar/18 3Q Mar/19 3Q 3Months America +11.1% +14.6% 27% 26% 26% Europe +17.3% +12.3% 17% 17% 15% Asia/Oceania +14.8% +12.2% 32% 32% 34% China +30.9% +20.9% 10%
Slide 18: Number of Aircraft
《 References 》 Number of Aircraft End of Mar/18 End of 3rd Quarter/19 (March 31, 2018) (December 31, 2018) Diff. 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
Slide 19: FY2018 (Mar/19) Revised Forecast
《 References 》 FY2018 (Mar/19) Revised Forecast Balance Sheet End of End of 1 Disclosed on October 31, 2018 FY2017 FY2018 2 Total Assets amount as of the end of FY2017 has been changed （JPY Bn） Diff. due to the revision of the accounting standards and other Previous New regulations regarding indicat
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Slide 21: Reference: Financial Strategy and Capital Policy①
《Reference》 Financial Strategy and Capital Policy① ※Originally disclosed on February 28, 2018 17
Slide 22: Reference: Financial Strategy and Capital Policy②
《Reference》 Financial Strategy and Capital Policy② ※Originally disclosed on February 28, 2018 *1 Free cash flow (3-year aggregate)=Cash flow from operating activities-Cash flow from investing activities *3 Indicates dividend yield of shareholders’ equity *2 3-year aggregate new debts used (new procu
Slide 23: Reference: Financial Strategy and Capital Policy③
《Reference》 Financial Strategy and Capital Policy③ ※Originally disclosed on February 28, 2018 19
Slide 24: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations, Japan Airlines
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