Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — H1 FY2023 Earnings Presentation

29 slides from Japan Airlines's earnings presentation, Oct 31, 2023

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

    JAPAN AIRLINES Co.,Ltd. Financial Results 1st Half Mar/2024 （FY2023） The JAL Group supports the Japanese National Rugby Team October 31, 2023 @JRFU, 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 FY23Q2 2. FORECAST FOR FY2023 FULL-YEAR APEX 「PRIDE Index 2022」

  3. Slide 3: Performance Overview for FY2023Q2

    Performance Overview for FY2023Q2 ✔ Increased revenue/profit vs pre-pandemic levels, achieved by swiftly recovering capacity ahead of others and steadily capturing the recovering passenger demand Revenue EBIT (1) / Profit or Loss (2) +72.0 Bn (3) (JPY Bn) (JPY Bn) (+9.6%) +202.4 Bn (+32.7%) Fuel/FX Ma

  4. Slide 4: FY2023Q2 Performance by Business Domain

    FY2023Q2 Performance by Business Domain ✔ Revenue and EBIT improved significantly, driven by Full Service Carrier ✔ LCC’s EBIT turned profitable. Mileage, Lifestyle and Infrastructure steadily recorded profit FY23 Mileage, Lifestyle Full Service Carrier Cargo / Mail LCC (1) （JPY Bn） and Infrastructure

  5. Slide 5: Forecast for FY2023 Full-Year

    1. PERFORMANCE OVERVIEW FOR FY23Q2 2. FORECAST FOR FY2023 FULL-YEAR 3. RECENT TOPICS 4. DETAILS OF FINANCIAL RESULTS FOR FY23Q2 5. REFERENCES ©Japan Airlines, ALL rights reserved. 5

  6. Slide 6: FY2023 Full-Year Performance Forecast

    FY2023 Full-Year Performance Forecast ✔ Consolidated full-year forecast: Revenue 1,684 billion yen, EBIT 130 billion yen and Net Profit 80 billion yen , to reflect the further recovering passenger demand ✔ Full-year dividend forecast increased from 40 yen to 60 yen per share Revenue EBIT / Profit (JPY

  7. Slide 7: Details of FY2023 Full-Year Performance Forecast

    Details of FY2023 Full-Year Performance Forecast FY22 FY23 EBIT by Business Domain (JPY Bn) FY22 FY23 FY23 Initial New Results Forecast Forecast Diff. (JPY Bn) Initial New Results Forecast Forecast Revenue 1,375.5 1,658.0 1,684.0 +26.0 Full Service Carrier Full Service Carrier 1,108.6 1,281.0 1,339.0

  8. Slide 8: Premises of Performance Forecast for FY2023

    Premises of Performance Forecast for FY2023 Int’l & Domestic Passenger Operations (Full Service Carrier) ✔ Int’l pax revenue expected to exceed initial forecast with larger pax number & higher unit price ✔ Domestic pax expected to exceed initial forecast through flexible pricing Passenger Demand（VS.C

  9. Slide 9: Recent Topics

    1. PERFORMANCE OVERVIEW FOR FY23Q2 2. FORECAST FOR FY2023 FULL-YEAR 3. RECENT TOPICS 4. DETAILS OF FINANCIAL RESULTS FOR FY23Q2 5. REFERENCES ©Japan Airlines, ALL rights reserved. 9

  10. Slide 10: Recent Topics (International Passenger Operations)

    RECENT TOPICS (International Passenger Operations) International Passenger Competitive Position in the Market Improving Competitiveness FY23 First-Half/Total Seats Left：Market Total New International Aircraft A350-1000 (FSC＋LCC） Scheduled to be in service by the end of the year! To/From Japan(vs CY1

  11. Slide 11: Recent Topics (Cargo/Mail, LCC, Mileage, Lifestyle and Infrastructure)

    RECENT TOPICS (Cargo/Mail, LCC, Mileage, Lifestyle and Infrastucture) Cargo/Mail 貨物・郵便 Mileage, Lifestyle and Infrastructure ■Preparation for freighter business underway Mileage Business 767 Freighter A321 Freighter ■ Further improve the convenience of Miles through: ・Partnership with Logistics ・Par

  12. Slide 12: Details of Financial Results for FY23Q2

    1. PERFORMANCE OVERVIEW FOR FY23Q2 2. FORECAST FOR FY2023 FULL-YEAR 3. RECENT TOPICS 4. DETAILS OF FINANCIAL RESULTS FOR FY23Q2 5. REFERENCES ©Japan Airlines, ALL rights reserved. 12

  13. Slide 13: Consolidated Financial Results

    Details of financial results for FY2023Q2 Consolidated Financial Results 1st Half 2nd Quarter (JPY Bn) Vs. FY19Q2 Vs. FY22Q2 Vs. FY22Q2 FY19Q2 FY22Q2 FY23Q2 FY23Q2 Diff. y/y Diff. y/y Diff. y/y Revenue 748.9 618.5 820.9 +72.0 +9.6% +202.4 +32.7% 439.4 +89.8 +25.7% Full Service Carrier 612.2 505.8 665.6

  14. Slide 14: Changes in EBIT (Revenues/Expenses)

    Details of financial results for FY2023Q2 Changes in EBIT (Revenues／Expenses) + stands for profit increase（ revenue increase, cost decrease ) RPK y/y ： +53.4% ▼ stands for profit decrease ( revenue decrease, cost increase ) ASK y/y ： +25.8% ＋91.0 Bn （JPY Bn） Domestic Cargo/ Mileage, Passenger Mail Life

  15. Slide 15: Changes in EBIT (Market and other impact)

    Details of financial results for FY2023Q2 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 ＋91.0 Bn Currency Market ▼7.9 Bn (Excl. Market Impact) Revenue +9.4 Bn Rev

  16. Slide 16: International & Domestic Passenger Operations

    Details of financial results for FY2023Q2 Int’l & Domestic Passenger Operations (Full Service Carrier) Q2 (Apr. to Sep.) Q2 (Jul. to Sep.) International Passenger FY19Q2 FY22Q2 FY23Q2 Vs. FY19Q2 Vs. FY22Q2 FY23Q2 Vs. FY22Q2 Passenger Revenue (JPY Bn) 272.9 163.2 314.4 +15.2% +92.6% 166.9 +65.6% Passe

  17. Slide 17: Cargo

    Details of financial results for FY2023Q2 Cargo ✔ International cargo recorded revenue higher than pre-pandemic levels by transportation of high value-added goods through our solid transportation quality ✔ Maximized volume particularly between Asia and North America by utilizing both our own and othe

  18. Slide 18: LCC

    Details of financial results for FY2023Q2 LCC ✔ ZIPAIR started service on the San Francisco route in June and the Manila route in July, expanding its destination to 8 cities mainly in North America and Asia ✔ Scheduled to increase its fleet to 8 aircrafts by the end of March 2024 Q2 (Apr. to Sep.) Q2

  19. Slide 19: Expenses

    Details of financial results for FY2023Q2 Expenses ✔ Actual fixed costs was 248.5 billion yen, achieved through steady cost control Major Operating Expense Items Q2 (Apr. to Sep.) Q2 (Jul. to Sep.) （JPY Bn） Vs. FY19Q2 Vs. FY22Q2 Vs. FY22Q2 FY19Q2 FY22Q2 FY23Q2 FY23Q2 Diff. y/y Diff. y/y Diff. y/y Fuel 12

  20. Slide 20: Fuel Costs

    Details of financial results for FY2023Q2 Fuel Costs Changes in fuel costs Hedge Ratio (As of End of Sep./2023) （JPY (JPY Bn) Bn） Hedging Volume Market and others +27.5 ▼56.2 +33.4 101.8170.0 154.8 FX +10.3 ＋15.1 Bn (＋9.8%) FY21Q3 FY22Q2 FY23Q2 FY23 FY24 FY25 Fuel Hedging FX Hedging Foreign currency

  21. Slide 21: Balance Sheet and Cash Flow

    Details of financial results for FY2023Q2 Balance Sheet and Cash Flow BS ✔ Equity ratio is 39.8% 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 213.4 billion yen, Free Cash Flow is 130.9 billion yen of inflo

  22. Slide 22: References

    1. PERFORMANCE OVERVIEW FOR FY23Q2 2. FORECAST FOR FY2023 FULL-YEAR 3. RECENT TOPICS 4. DETAILS OF FINANCIAL RESULTS FOR FY23Q2 5. REFERENCES ©Japan Airlines, ALL rights reserved. 22

  23. Slide 23: Operation Performance by Geographic Segment (Full Service Carrier)

    [Reference] Operation Performance by Geographic Segment (Full Service Carrier) Passenger Revenue Revenue Passengers Carried Q2 (Apr. to Sep.) Q2 (Jul. to Sep.) Q2 (Apr. to Sep.) Q2 (Jul. to Sep.) FY23Q2 FY23Q2 ('000) (%） FY23Q2 Vs. FY19Q2 Vs. FY22Q2 Component Vs. FY19Q2 Vs. FY22Q2 Component FY23Q2 V

  24. Slide 24: Fleet Information

    [Reference] Fleet Information End of FY22 (March 31, 2023) End of FY23Q2 (September 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 2

  25. Slide 25: FY2023 Full-Year Forecast Changes in EBIT

    [Reference] FY2023 Full-Year Performance Forecast Changes in EBIT（First Half Results・Second Half Forecast） ✔ Further recovery expected especially for Int’l Pax and Mileage, Lifestyle & Infrastructure ✔ Main factors for increased costs in 2nd half are fuel costs ＆investment in human resources + stand

  26. Slide 26: 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) (Results) (Forecast) (Forecast) (Results)

  27. Slide 27: FY2023 Forecast Balance Sheet and Cash Flow

    [Reference] FY2023 Full-Year Performance Forecast Balance Sheet and Cash Flow FY23 FY23 End of FY22 (Initial (New （JPY Bn） Balance Sheet (Results) Forecast) Forecast) Diff. Total Assets 2,520.6 2,544.0 2,642.0 +98.0 Balance of Interest-bearing 925.5 883.0 885.0 +2.0 debts Shareholders’ Equity(1) 816.

  28. Slide 28: Fly into tomorrow.

    Fly into tomorrow. Finance & Investor Relations Japan Airlines ©Japan Airlines, ALL rights reserved. 28

  29. Slide 29: 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

Japan Airlines — H1 FY2023 Earnings Presentation on 6ix