Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q1 FY2015 Earnings Presentation
31 slides from Japan Airlines's earnings presentation, Jul 30, 2015
Slide 1: Financial Results 1st Quarter Mar/2016 (FY2015)
Financial Results 30 July, 2015 1st Quarter Mar/2016 (FY2015)
Slide 2: Today's Topics
Today’ s Topics Q — ——— JAPAN AIRLINES OVERVIEW OF FINANCIAL RESULTS FOR “© 1ST QUARTER MAR/16 (FY2015) DETAILS OF FINANCIAL RESULTS FOR Ces ) 1ST QUARTER MAR/16 (FY2015) SUPPLEMENTAL REFERENCES & &
Slide 3: Overview of 1st Quarter FY Mar/2016 Financial Results
Overview of 1st Quarter FY Mar/2016 Financial Results Operating Revenue Operating Profit （JPY Bn） （JPY Bn） 320 50 20% 312.0 307.0 +4.9Bn +17.6Bn 36.2 15% (+1.6%) (+94.6%) 300 25 10% 18.6 11.6% Operating 5% 6.1% Profit Margin 280 1st Quarter 1st Quarter 0 1st Quarter 1st Quarter 0% FY Mar/15 FY Mar/1
Slide 4: Overview commentary: revenue and profit increase
Operating revenue increased by 1.6% year on year to 312 billion yen because both domestic and international passenger operations increased. Operating profit increased by 94.6% year on year to 36.2 billion yen due to increase in revenue and a decline in fuel prices. We are pressing forward stea
Slide 5: Consolidated Financial Results
Consolidated Financial Results Consolidated Financial Results 1 st Quarter FY Mar/16 1st Quarter 1st Quarter （JPY Bn） y/y Operating revenue increased FY Mar/15 FY Mar/16 Operating Revenue 307.0 312.0 +1.6% by 1.6% to 312.0 billion yen. Air Transportation Segment 274.1 282.4 +3.0% Operating Expense
Slide 6: Consolidated results commentary
Operating revenue increased by 1.6% year on year to 312 billion yen, due to an increase in inbound passengers on international flights and an increase in our revenue per passenger on domestic flights. Operating expenses decreased by 4.4% year on year to 275.7 billion yen, due to a decline in fue
Slide 7: Changes in Operating Profit
Changes in Operating Profit 1st Quarter FY Mar/16 （JPY Bn） +17.6Bn ASK y/y： +0.9% Impact of Currency Market ▲7.3Bn (+94.6%) RPK y/y： +5.4% Revenue +5.2Bn Cost ▲12.5Bn Aircraft Cost（*） Fuel ▲8.0Bn Fuel Maintenance Personnel Except Fuel ▲4.5Bn Sales of Expenses of +13.7 ▲0.1 ▲0.4 ▲2.6 Other Cost trave
Slide 8: Operating profit change commentary
Operating profit increased by 17.6 billion yen year on year, the breakdown of which is an increase in operating revenue of 4.9 billion yen and a decrease in operating expense of 12.6 billion yen. As operating revenue, international passenger revenue increased by 2.2 billion yen due to an increas
Slide 9: International Passenger Operations (Operating Results)
International Passenger Operations（Operating Results） International Passenger 1st Quarter 1st Quarter Passenger revenue increased by y/y FY Mar/15 FY Mar/16 2.1% to 109.4 Bn. Passenger Revenue 107.2 109.4 +2.1% ASK and RPK increased by 2.4% （JPY Bn） and by 8.9% respectively, and ASK 11,728 12,00
Slide 10: International passenger commentary
RPK increased by 8.9% with robust inbound passengers while ASK increased by 2.4%. As a result, the load factor rose by 4.6 points to 77.9%. Yield and revenue per passenger decreased by 6.2% respectively. As shown in the bottom right chart, it is estimated that revenue per passenger and such, exc
Slide 11: International Passenger Operations (Changes in Revenue)
International Passenger Operations（Changes in Revenue） 1st Quarter FY Mar/16 （JPY Bn） Revenue per passenger declined +2.2Bn due to a decrease in fuel surcharge (+2.1%) revenue. Strong demand for inbound +7.5 109.4 107.2 ▲5.3 passengers, primarily from China and Southeast Asia. ・Fuel surcharge, ・
Slide 12: International revenue change commentary
Though fuel surcharge revenue decreased, we were able to partially recover the decrease in revenue per passenger thanks to an increase in net revenue per passenger, and such. Regarding the number of passenger, demand for inbound passengers was greatly increased owing to the weaker yen and the re
Slide 13: Domestic Passenger Operations (Operating Results)
Domestic Passenger Operations (Operating Results） Domestic Passenger 1st Quarter 1st Quarter Passenger revenue was 109.9 y/y FY Mar/15 FY Mar/16 billion yen, +3.9% year on year. Passenger Revenue 105.7 109.9 +3.9% （JPY Bn） ASK was ▲1.0% and RPK ASK 9,067 8,973 ▲1.0% slightly increased year on ye
Slide 14: Domestic passenger commentary
RPK increased by 0.1% while ASK decreased by 1.0%. As a result, the load factor increased by 0.7 points to 63.1%. Yield and revenue per passenger increased by 3.7% and 3.6% respectively. Consequently, domestic passenger revenue increased by 3.9% to 109.9 billion yen. 7-a
Slide 15: Domestic Passenger Operations (Changes in Revenue)
Domestic Passenger Operations (Changes in Revenue) 1st Quarter FY Mar/16 （JPY Bn） JAL SKY NEXT of highly reputed. +4.1Bn (+3.9%) Increase in passengers due to implementation of various +3.7 +0.4 109.9 measures to stimulate demand. 105.7 ・introduction of New discount fare “Ultra Sakitoku.” ・Incre
Slide 16: Domestic revenue change commentary
Revenue per passenger contributed to a revenue increase of 3.7 billion yen as a result of changes in customer mix due to increased individual passengers, and such. Although ASK decreased by 1.0% year on year, the number of passenger led to a revenue increase of 0.4 billion yen owing to the intro
Slide 17: Major Operating Expense Items
Major Operating Expense Items Operating Expenses (JPY Bn) 1st Quarter 1st Quarter Difference y/y Though some items of FY Mar/15 FY Mar/16 Operating Expenses Fuel 73.6 59.9 ▲13.7 ▲18.6% increased due to the weaker yen and the expenses for Landing and Navigation fees 19.9 20.4 +0.4 +2.2% service enh
Slide 18: Operating expense commentary
Some items of Operating Expenses increased due to the weaker yen and the expense for service enhancement, but we will continuously make best efforts to control our costs. Fuel costs decreased by 18.6% to 59.9 billion yen due to the decline in fuel prices. Personnel costs increased by 2.6 billi
Slide 19: Impact of Fuel and FX Markets
Impact of Fuel and FX Markets Hedging Ratio of Fuel Costs Transition of Fuel Cost by Factor (As of End of 1st Quarter FY Mar/16) 80 Approx 73.6 ▲27.8 100% 90% Fuel FX 70 +6.1 59.9 80% 60 +8.0 60% Approx 50 Volume 40% Market FX increase / 40% 40 Approx Approx Hedging etc 15% 15% Approx Approx 30 ▲13.
Slide 20: Fuel cost commentary
Please look at the chart in the upper left corner. Fuel costs declined by 13.7 billion yen year on year, the breakdown of which is a 27.8 billion yen decrease due to the falling fuel prices, but an 8 billion yen increase due to the weaker yen, and a 6.1 billion yen increase owing to an increase in
Slide 21: Major Balance Sheet Items
Major Balance Sheet Items Consolidated Balance Sheet Summary as of End of 1st Quarter FY Mar/16 End of End of FY The balance of interest- 1st Quarter （JPY Bn） Mar/15 Difference FY Mar/16 bearing debt decreased 2015/3/31 2015/6/30 by 8.7 billion yen to 91.8 Total Assets 1,473.3 1,479.3 +6.0 billion
Slide 22: Balance sheet commentary
Outstanding interest-bearing debts decreased by 8.7 billion yen to 91.8 billion yen as we repaid lease obligations and long-term loans. Future Rental Expenses under Operating Leases also decreased by 3.3 billion yen to 121.7 billion yen. The Shareholder’s Equity ratio slightly declined by 0.1
Slide 23: Major Cash Flow Items
Major Cash Flow Items （JPY Bn） 1st Quarter FY Mar/15 1st Quarter FY Mar/16 Difference Net income before income taxes and 17.5 39.1 +21.6 minority interests Depreciation and Amortization 21.3 21.5 +0.1 Other 23.0 29.6 +6.5 Cash Flow from Operating Activities 61.9 90.3 +28.3 Capital Expenditure (1) ▲4
Slide 24: Cash flow commentary
Cash flow from operating increased by 28.3 billion yen to 90.3 billion yen. Cash flow from investing increased by 14.9 billion yen, primarily for aircraft, and is proceeding as planned. Cash flow from financing totaled 48.8 billion yen due to cash outflows to repay interest-bearing debts, divi
Slide 25: FY Mar/16 Earnings Forecast (Consolidated)
FY Mar/16 Earnings Forecast (Consolidated) FY Mar/15 FY Mar/16 (JPY Bn) Difference Results Forecast FY Mar/15 FY Mar/16 Results Forecast Revenue 1,344.7 1,328.0 ▲16.7 ASK* Int’l +3.2% +3.1% Operating Expense 1,165.0 1,156.0 ▲9.0 Doms ▲2.1% +0.7% Operating Profit 179.6 172.0 ▲7.6 RPK* Int’l +2.0% +5.
Slide 26: Earnings forecast commentary
This page shows our earnings forecast for the fiscal year ending March 31, 2016. We will not change our forecast for the full fiscal year as the 1st quarter has just completed. We will continue to aim for both higher revenue and profit. Please refer to the following supplemental references. 13
Slide 27: Supplemental References
SUPPLEMENTAL REFERENCES
Slide 28: Revenue of International Routes by Geographic Segment
《Supplemental Reference》 Revenue of International Routes by Geographic Segment Passenger Revenue (% of the whole int’l revenue) Passengers 1ST Quarter 1ST Quarter 1ST Quarter 1ST Quarter (%) Difference (‘000) y/y FY Mar/15 FY Mar/16 FY Mar/15 FY Mar/16 Trans Pacific 35.0% 35.5% +0.5pt Trans Pacific
Slide 29: Number of Aircraft in Service Jun/2015
《Supplemental Reference》 Number of Aircraft in Service Jun/2015 End of Mar/2015 End of Jun/2015 Difference Owned Leased Total Owned Leased Total Boeing 777-200 13 0 13 12 0 12 ▲1 Boeing 777-200ER 11 0 11 11 0 11 -- Boeing 777-300 7 0 7 5 0 5 ▲2 Boeing 777-300ER 13 0 13 13 0 13 -- Large-sized Total 4
Slide 30: Contact: Finance, Japan Airlines
Contact: Finance, Japan Airlines +81-3-5460-3068
Slide 31: Disclaimer
Disclaimer 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 the time when these materials were cre