Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q3 FY2021 Earnings Presentation
22 slides from Japan Airlines's earnings presentation, Feb 2, 2022
Slide 1: Financial Results 3rd Quarter Mar/2022 (FY2021)
JAPAN AIRLINES Co., Ltd. Financial Results 3rd Quarter Mar/2022（FY2021） February 2, 2022 On New Year’s Day, 2022 Mt. Fuji and the first sunrise from A350 “New Year Sunrise Flight” ©Japan Airlines, ALL rights reserved.
Slide 2: Agenda and awards
APEX SKYTRAX SKYTRAX APEX SKYTRAX 2021 WORLD CLASS Health Safety Powered Covid-19 Safety Rating 5-Star Airline 5 Star SKYTRAX The World’s Best by SimpliFlying Audit Economy Class Diamond COVID-19 Excellence Award The Best Economy Class Seat 1. PERFORMANCE OVERVIEW FOR The 8th 3rd Quarter FY21 IR Goo
Slide 3: Performance Overview for 3rd Quarter FY21
PERFORMANCE OVERVIEW FOR 3rd Quarter FY21 Revenue EBIT (1)/Profit or Loss (2) （JPY Bn）1,200.0 ▼614.2 Bn （JPY Bn） 1,112.7 EBIT Profit or Loss (▼55.2%) 200.0 114.6 100.0 74.8 800.0 +141.9 Bn 0.0 (+39.8%) EBIT Margin(3) 498.4 ▼ 100.0 10.3% 400.0 356.5 ▼128.3 ▼ 200.0 ▼212.7 ▼183.3 ▼297.9 Bn ▼ 300.0 ▼294
Slide 4: 1. Performance Overview for 3rd Quarter FY21
1. PERFORMANCE OVERVIEW FOR 3rd Quarter FY21 2. RECENT OUTLOOK 3. RECENT INITIATIVES 4. DETAILS OF FINANCIAL RESULTS FOR 3rd Quarter FY21 5. REFERENCES ©Japan Airlines, ALL rights reserved. 4
Slide 5: EBIT, EBITDA and Cash Burn
EBIT, EBITDA and CASH BURN ✓ Cash burn diminished and EBITDA turned positive in the Q3 period ✓ Q3 performance was in line with the performance forecast ✓ 350 billion yen was financed through hybrid financing, and the total liquidity at hand, together with the unused credit line of 300 billion yen,
Slide 6: Passenger and Cargo Demand
PASSENGER and CARGO DEMAND ✓ While Omicron variant makes the situation unclear, the current performance forecast remains unchanged because of cargo revenue increase and cost cut • Domestic Passenger would recover rapidly if COVID infection slows down • International Cargo demand is expected to remai
Slide 7: 2. Recent Outlook
1. PERFORMANCE OVERVIEW FOR 3rd Quarter FY21 2. RECENT OUTLOOK 3. RECENT INITIATIVES 4. DETAILS OF FINANCIAL RESULTS FOR 3rd Quarter FY21 5. REFERENCES ©Japan Airlines, ALL rights reserved. 7
Slide 8: Recent Initiatives
RECENT INITIATIVES ESG Transition Bond Actions to climate change The world’s first transition bonds in the SAF(Sustainable Aviation Fuel) Development aviation industry (1) and Promotion The first airline model example ✓ Joint SAF Purchase with Alliance Members selected by the Japanese government • J
Slide 9: 4. Details of Financial Results
1. PERFORMANCE OVERVIEW FOR 3rd Quarter FY21 2. RECENT OUTLOOK 3. RECENT INITIATIVES 4. DETAILS OF FINANCIAL RESULTS FOR 3rd Quarter FY21 5. REFERENCES ©Japan Airlines, ALL rights reserved. 9
Slide 10: Consolidated Financial Results
DETAILS OF FINANCIAL RESULTS FOR 3rd Quarter FY21 Consolidated Financial Results Q3 (April to December) Q3 (October to December) （JPY：Bn ） FY19Q3 FY20Q3 FY20Q3 FY19Q3 FY20Q3 FY21Q3 FY21Q3 Diff. y/y Diff. y/y Diff. y/y Revenue 1,112.7 356.5 498.4 ▼614.2 ▼55.2% +141.9 +39.8% 207.8 +46.0 +28.5% Interna
Slide 11: Changes in EBIT (Revenues/Expenses)
DETAILS OF FINANCIAL RESULTS FOR 3rd Quarter FY21 Changes in EBIT (Revenues／Expenses) ASK y/y： +56.5% + stands for profit increase（ revenue increase, cost decrease ) RPK y/y： +46.7% ▼ stands for profit decease ( revenue decrease, cost increase ) ＋110.8 Bn (JPY：Bn） 16.6 Bn yen of Personnel cost reduc
Slide 12: International Passenger Operations (Full Service Carrier)
DETAILS OF FINANCIAL RESULTS FOR 3rd Quarter FY21 International Passenger Operations (Full Service Carrier) ✓ The passenger number gradually recovered toward the end of December as transit passenger demand was captured and the border restriction was temporarily eased Int'l Pax Int'l Capacity (Seat N
Slide 13: Domestic Passenger Operations (Full Service Carrier)
DETAILS OF FINANCIAL RESULTS FOR 3rd Quarter FY21 Domestic Passenger Operations (Full Service Carrier) ✓ Demand recovered rapidly after the lift of state of emergency declaration ✓ Adequate operation captured 85% (vs. 2019) of passenger demand for New Year holidays ✓ “Award Anytime” for domestic fli
Slide 14: Cargo
DETAILS OF FINANCIAL RESULTS FOR 3rd Quarter FY21 Cargo ✓ International Cargo demand and price increased significantly y/y due to a shift from ocean shipment ✓ Achieved significant increase of revenue y/y through actively operating cargo flight with own passenger aircrafts and chartered freighters V
Slide 15: Expenses
DETAILS OF FINANCIAL RESULTS FOR 3rd Quarter FY21 Expenses Actual Fixed Cost (1) Breakdown of Operating Expenses (JPY: Bn) Actual Fixed Cost Fixed Cost (except Actual Fixed Cost) ✓ Actual Fixed Cost for the Q3 period (April to Dec.) was 346.7 Revenue and Capacity Linked Cost billion yen(y/y ▼22.8 bi
Slide 16: Consolidated Statement of Financial Position and Cash Flow
DETAILS OF FINANCIAL RESULTS FOR 3rd Quarter FY21 Summary of Consolidated Statement of Financial Position and Cash Flow ✓ Equity Ratio and Net D/E Ratio for credit rating was improved by the hybrid financing to BS a solid level of 42.9% and 0.2x, respectively ✓ Operating cash flow turned to 9.1 bill
Slide 17: 5. References
1. PERFORMANCE OVERVIEW FOR 3rd Quarter FY21 2. RECENT OUTLOOK 3. RECENT INITIATIVES 4. DETAILS OF FINANCIAL RESULTS FOR 3rd Quarter FY21 5. REFERENCES ©Japan Airlines, ALL rights reserved. 17
Slide 18: Full-Year Performance Forecast Mar/2022
Originally disclosed on Nov 2,2021 《Reference》 FULL-YEAR PERFORMANCE FORECAST MAR/2022 ✓ Full-year performance forecast is expected to improve significantly y/y to EBIT ▼198 billion yen and Net loss ▼146 billion yen ✓ The 2nd half is expected to improve from the 1st Half by about EBIT 100 billion ye
Slide 19: Operation Performance by Geographic Segment
《Reference》 Operation Performance by Geographic Segment (1) (Full Service Carrier) Passenger Revenue Revenue Passengers Carried Q3 (April to Dec.) Q3 (Oct. to Dec.) Q3 (April to Dec.) Q3 (Oct. to Dec.) (‘000) (%) FY21Q3 FY21Q3 FY21Q3 Vs. FY19Q3 Vs. FY20Q3 FY21Q3 Vs. FY20Q3 Component Vs.FY19Q3 Vs. FY
Slide 20: Fleet Information
《 Reference 》 Fleet Information End of FY20 (March 31, 2021) End of FY21Q3 (December 31, 2021) Owned Leased Total 1 Total 2 Owned Leased Total 1 Total 2 Diff. retired aircraft retired aircraft Total2 of Mar/21 - excluded excluded and Dec/21 Airbus A350-900 4 4 8 8 10 4 14 14 +6 Boeing 777-300ER 13 0
Slide 21: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations, Japan Airlines ©Japan Airlines, ALL rights reserved. 21
Slide 22: 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