Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q1 FY3/2014 Earnings Presentation
31 slides from Japan Airlines's earnings presentation, Jul 31, 2013
Slide 1: Financial Results 1st Quarter Mar/2014 (FY2013)
Financial Results 1st Quarter Mar / 2014 (FY2013) 31 July, 2013
Slide 2: Topics
TOPICS Q SS JAPAN AIRLINES CC rrr OVERVIEW OF 187 QUARTER FY3/14 FINANCIAL RESULTS C2) OPERATIONS OF BOEING 787 DETAILS OF 18™ QUARTER FY3/14 SUPPLEMENTAL REFERENCES
Slide 3: Overview of 1st Quarter FY3/14 Financial Results
Overview of 1st Quarter FY3/14 Financial Results Operating Revenue Operating Profit （JPY Bn） Operating Profit Margin （JPY Bn） 60 15% 294.1 286.7 11.0% 40 10% 280 31.4 7.5% ＋2.6% 22.0 20 5% 250 0 0% 1st Quarter 1ST Quarter 1ST Quarter 1ST Quarter FY3/13 FY3/14 FY3/13 FY3/14 Despite weak Yen, Operat
Slide 4: First quarter operating revenue and profit commentary
In the first quarter, operating revenue was 294.1 billion yen due to the growth in both international and domestic passenger revenue. On the other hand, our Operating Profit declined by 9.3 billion yen to 22 billion yen because of the cost increase for the weak Yen and the suspension of Boeing 7
Slide 5: Impact from Current FX Markets
Impact from Current FX Markets Breakdown of the Impact on Our Operating Profit (JPY Bn) FX impact Excl. FX ▲10.6 Bn +1.2 Bn Expenses Revenue (Excl. Fuel) +5.3 ▲4.5 FUEL 31.4 ▲11.4 Revenue Expenses +2.0 ▲0.8 20.8 22.0 1Q FY3/13 Estimated Operating Profit 1Q FY3/14 (1USD=81.4JPY) without FX impact (1U
Slide 6: Commentary on FX impact on operating profit
This page shows the breakdown of the impact from the current foreign exchange market on our operating profit of the 1st quarter. The weak Yen made a 5.3 billion yen raise on our revenue, 4.5 billion yen impact on our fuel excluded cost, and 11.4 billion yen on our fuel cost. Our operating profit
Slide 7: Operations of Boeing 787
Operations of Boeing 787 Boeing 787 Operations Operations of Boeing 787 resumed from June 1, 2013. Narita-Helsinki Routes operation newly started from July 1. The reservation is growing steadily. Current Reservations (as of 25JUL) (**) JUL AUG Newly Launched Routes (*) 82% 83% All 787 Routes 7
Slide 8: 787 operations resumed June 1
June 1st, we resumed 787 operations, and now we are operating 787s to 7 cities over 8 routes. On July 1st, we launched a new service using Boeing 787 between Narita and Helsinki, building our network to boost our customers’ convenience, with Helsinki as a gateway bridging Japan and Europe. The
Slide 9: Consolidated Financial Results
Consolidated Financial Results Consolidated Financial Results 1st Quarter FY3/14 1st Quarter 1ST Quarter Revenue: JPY Bn % y/y FY3/13 FY3/14 294.1Bn JPY, y/y +2.6% Revenue 286.7 294.1 +2.6% Air transportation segment 259.1 262.9 +1.5% Operating Profit: Operating Expense 255.3 272.0 +6.5% 22.0 Bn
Slide 10: Operating revenue increased 2.6% year-on-year
Operating revenue for the first quarter increased by 2.6% year-on-year to 294.1 billion yen, mainly due to an increase in revenue per passenger on international flights, and an increase in the number of passengers on domestic flights. Operating expense increased by 6.5% from the previous year to 2
Slide 11: Changes of Operating Profit
Changes of Operating Profit 1st Quarter FY3/14 ASK y/y： +3.8% RPK y/y： +2.4% （JPY Bn） ▲9.3Bn (▲29.8%) Other Revenue Fuel Domestic Int’l Operation Int’l Passenger Cargo +4.0 ▲6.6 Coupled Revenue Passenger +0.5 ▲0.1 Cost Coupled +3.0 Cost 31.4 ▲1.6 Other Cost ▲1.5% +5.8% ▲0.8 +0.5% ▲10.7% ▲7.5 +3.1% ▲
Slide 12: Operating profit change commentary
Compared to the same period last year, revenue of international passenger and domestic passenger operations increased by 3.0 billion yen and 0.5 billion yen respectively. The aggregate revenues, including other revenues, increased by 7.3 billion yen. As for expenses, fuel costs increased signifi
Slide 13: International Passenger Operations (Operating Results)
International Passenger Operations (Operating Results) International Passenger 1Q FY3/13 1Q FY3/14 % y/y International Passenger Revenue: Passenger Revenue (JPY Bn) 95.9 98.9 +3.1% JPY98.9Bn, y/y +3.1% ASK（MN seat km） 10,853 11,260 +3.7% Load Factor: 72.6%, y/y ▲0.7pt RPK（MN passenger km） 7,961
Slide 14: International ASK and RPK commentary
ASK and RPK of international flights increased by 3.7% and by 2.8% respectively from last year. As a result, load factor declined slightly to 72.6%, but remains strong as last year. On the other hand, due to an increase in passengers on mid to long haul routes such as Southeast Asia, as well as a
Slide 15: International Passenger Operations (Changes of Revenue)
International Passenger Operations (Changes of Revenue) 1st Quarter FY3/14 +3.0Bn Strong Demand on Southeast Asia: (+3.1%) Load Factor 71.9% （y/y +3.3%） ▲0.7 98.9 JAL SKY SUITE 777: +3.7 Deployed on Narita=New York route - Stagnant China and Korea following ongoing services to 95.9 - Strong Sout
Slide 16: International demand commentary
In the first quarter, demand on China and Korea routes was stagnant, while demand on Southeast Asia routes was strong in terms of both load factor and unit revenue. In May, we launched JAL SKY SUITE 777, which offers greater comfort and amenities in every Class, to New York, following ongoing serv
Slide 17: Domestic Passenger Operations (Operating Results)
Domestic Passenger Operations (Operating Results) Domestic Passenger 1Q FY3/13 1Q FY3/14 % y/y Domestic Passenger Revenue : Passenger Revenue 108.8 Bn JPY, y/y +0.5% (JPY Bn) 108.2 108.8 +0.5% Revenue per passenger: ASK（MN seat km） 9,097 9,444 +3.8% y/y ▲2.9% RPK（MN passenger km） 5,425 5,531 +2.
Slide 18: Domestic ASK and RPK commentary
ASK and RPK increased by 3.8% and 2.0% respectively year-on-year. As a result, load factor declined slightly from the previous year to 58.6%. Meanwhile, due to a strong demand of group passengers, yield and revenue per passenger declined by 1.4% and 2.9% respectively. However, the number of revenu
Slide 19: Domestic Passenger Operations (Changes of Revenue)
Domestic Passenger Operations (Changes of Revenue) 1st Quarter FY3/14 Network Expansion: +0.5Bn New Tokyo (Haneda)= (+0.5%) Route Nagoya (Chubu) 108.8 108.2 Resumed Osaka (Itami) = Misawa, Hakodate, Matsuyama Sapporo=Niigata 4.0 Frequency Osaka (Itami) = Fukuoka, ▲3.5 Hanamaki, Sendai, Oita, Incre
Slide 20: Domestic network expansion commentary
In the first quarter, we expanded our domestic network significantly due to an increase in departure and landing slots at Tokyo-Haneda airport and Osaka-Itami airport. When examining passenger mix, group passengers accounted for an especially large margin mainly due to the tie-up with Tokyo Disn
Slide 21: Major Operating Expense Items
Major Operating Expense Items Breakdown of Operating Expenses Fuel cost increased by 6.6 (JPY Bn) 1Q FY3/13 1Q FY3/14 Difference % y/y Bn JPY due to an increase Fuel 61.6 68.3 +6.6 +10.7% in supply and weak Yen Landing fees 18.6 20.0 +1.4 +7.6% Maintenance cost Maintenance 6.9 9.6 +2.7 +39.3% in
Slide 22: Fuel, maintenance and personnel cost commentary
Fuel costs increased by 10.7% from previous year caused by a weak yen and increase in our supply. Maintenance cost increased by 2.7 billion yen due to an increase in outsourcing for the cabin interior refurbishment, and weak yen. Personnel costs increased by 3.4%, due to an increase in bonus le
Slide 23: Major Balance Sheet Items
Major Balance Sheet Items Consolidated Balance Sheet Summary End of 1st Quarter FY3/14 End of FY2012 End of 1Q FY3/14 The balance of interest- （JPY Bn） Difference 2013/3/31 2013/6/30 bearing debt is reduced to 149.2 Bn JPY after Total Assets 1,216.6 1,223.7 +7.0 repayment Cash and Deposits 347.9 3
Slide 24: Interest-bearing debt and equity ratio commentary
As we repaid lease debts, the balance of interest-bearing debt declined by 10.8 billion yen year-on-year to 149.2 billion yen. The shareholder’s equity ratio decreased by 1.4 points from the previous period to 45.1% due to payment of the dividend. As we posted the net profit in this quarter, we
Slide 25: Major Cash Flow Items
Major Cash Flow Items (JPY Bn) 1Q FY3/13 1Q FY3/14 % y/y Net income before income taxes and minority interests 30.4 20.9 ▲9.4 Depreciation 20.1 19.6 ▲0.4 Other 16.1 17.8 +1.6 Cash Flow from Operating Activities 66.6 58.4 ▲8.2 Capital Expenditure (1) ▲25.8 ▲25.8 +0.0 Other +0.4 +1.8 +1.3 Cash Flow fr
Slide 26: Topics
TOPICS Q OVERVIEW OF 15’ QUARTER FY3/14 FINANCIAL RESULTS OPERATIONS OF BOEING 787 DETAILS OF 1S QUARTER FY3/14 SUPPLEMENTAL REFERENCES JAPAN AIRLINES
Slide 27: Supplemental Reference: Impact from Fuel and Currency Markets
《Supplemental Reference》 Impact from Fuel and Currency Markets Hedging Ratio for Fuel Costs (As of End of 1Q FY3/14) Sensitivity for Fuel Costs (Without Hedging) 100% Approx. Crude Oil 2.0 Bn JPY 80% (Change in 1 USD/bbl） Per Year 80% FUEL FX FX 2.5 Bn JPY (Change in 1 JPY/USD) Per Year 60% Approx.
Slide 28: Supplemental Reference: Revenue of International Routes by Geographical Segment
《Supplemental Reference》 Revenue of International Routes by Geographical segment Passenger Revenue (% of the whole int’l revenue) Passengers (%) 1Q FY3/13 1Q FY3/14 y/y (‘000) 1Q FY3/13 1Q FY3/14 y/y Trans Pacific 32.5% 33.0% +0.5pt Trans Pacific 396 400 +1.0% Europe 19.0% 19.0% ▲0.0pt Europe 161 15
Slide 29: Supplemental Reference: Number of Aircraft in Service
《Supplemental Reference》 Number of Aircraft in Service Number of Aircraft (Consolidated) End of Mar/2013 End of Jun/2013 2013/3/31 2013/6/30 Changes Owned Leased Total Owned Leased Total Boeing 777-200 15 0 15 15 0 15 - Boeing 777-200ER 11 0 11 11 0 11 - Boeing 777-300 7 0 7 7 0 7 - Boeing 777-300ER
Slide 30: Fly into tomorrow.
Fly into tomorrow. Contact: Finance, Japan Airlines +81-3-5460-3068
Slide 31: This contents contains descriptions of the future expectations, outlooks, objectives and plans etc. of
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 created by the