Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — H1 FY2017 Earnings Presentation
26 slides from Japan Airlines's earnings presentation, Oct 31, 2017
Slide 1: Financial Results 2nd Quarter Mar/2018 (FY2017)
JAPAN AIRLINES Co., Ltd. Financial Results 2nd Quarter Mar/2018（FY2017） October 31, 2017
Slide 2: Today's Topics
Today’s Topics P.1 P.2 P.7 P.8 P.9 P.17 ※JAL Corporate Website
Slide 3: Overview of Financial Results for 1st Half Mar/18
Overview of Financial Results for 1st Half Mar/18 1st Half Mar/18 (FY2017) 1st half resulted in an increase in both revenue and profit compared to the previous year. Operating Revenue Operating profit・Net profit （JPY Bn） （JPY Bn） （ Operating Profit Margin ） 700 692.3 120 20% Operating Net Operatin
Slide 4: Intentionally Left Blank
‘2 Neen JAPAN AIRLINES INTENTIONALLY LEFT BLANK
Slide 5: Revised Consolidated Financial Forecast for Mar/18
Revised Consolidated Financial Forecast for Mar/18 Upward Revision for Operating Profit & Net Profit Forecast An upward revision for the financial forecast for FY17 has been made on the 1st half result. Operating profit・Net profit (JPY Bn) Previous Forecast New Diff. Forecast (JUL 31) （ JPY Bn ） （
Slide 6: Revised Consolidated Financial Forecast for Mar/18: Changes in Operating Profit
Revised Consolidated Financial Forecast for Mar/18 Changes in Operating Profit ＋ stands for profit increase (revenue increase, cost reduction) 【Revenues／Expenses】 ▲ stands for profit decrease (revenue decrease, cost increase) ＋13.0Bn (＋8.5%) Fuel Others (Excl. Fuel) *FSC=Fuel Surcharge Other Revenue
Slide 7: Revised Dividend Forecast
Revised Dividend Forecast Dividend forecast FY2016 Previous New Results Forecast Forecast (JUL 31) Net Profit (1) (JPY Bn) 164.1 108.0 121.0 Dividends per share Income Tax-Deferred ▲31.6 5.0 2.0 （JPY） (JPY Bn) Income available for 132.5 113.0 123.0 dividends (JPY Bn) 105 Payout Ratio × 25% × 30% × 3
Slide 8: Recent Topics (Innovation of Passenger Service System)
※Reproduce, announced on July 31, 2017 Recent Topics（Innovation of Passenger Service System） New system* will go live on Nov 16, 2017 Aim to increase our passenger revenue by 1% or more as early as possible. As from FY19, the Benefit will exceed the Cost to contribute to our profitability. Total Inv
Slide 9: Progress of Strategic Expenditures
Progress of Strategic Expenditures ※Reproduce, announced on April 28, 2017 Strategic Expenditures（y/y +21.5Bn） IT upgrade : as planned Others : Slightly higher than the plan due to higher utilization ratio of free Wi-Fi services Maintenance（y/y +10.0Bn） As planned Others（y/y +10.0Bn） As plan
Slide 10: Financial strategy
Financial strategy Maintain both strong financial structure and high capital efficiency Financial structure Capital efficiency Shareholders’ Decrease cost of capital・ Credit rating Utilize debt Liquidity equity ratio Equity ratio reached Aim to achieve and Decrease cost of equity Maintain ap
Slide 11: Recent Topics
Recent Topics JAL Focus Refine our full service carrier business and Expand business domains Route Network Alliances Fleet Launch Narita – Melbourne JAL×Hawaiian Airlines Increasing No. of 787-9s for （2017.9.1～） ・Signed a comprehensive new partnership international routes Launch Narita – Kon
Slide 12: Consolidated Financial Results
Consolidated Financial Results Consolidated Financial Results 1st Half Mar/18 1st Half 1st Half 2 nd Quarter （JPY Bn） Diff. y/y Diff. y/y Mar/17 Mar/18 (Jul-Sep)(5) Operating Revenue 651.9 692.3 ＋40.3 ＋6.2% 377.5 ＋22.7 ＋6.4% Air Transportation Segment 585.6 627.3 ＋41.6 ＋7.1% 341.4 ＋24.1 ＋7.6% Operat
Slide 13: Changes in Operating Profit (Revenues / Expenses)
Changes in Operating Profit（ Revenues ／ Expenses ） 1st Half Mar/18 （ JPY Bn ） ＋ stands for profit increase (revenue increase, cost reduction) ▲ stands for profit decrease (revenue decrease, cost increase) ASK y/y： ＋0.5% ＋6.6Bn RPK y/y： ＋3.5% (＋7.2%) Other Revenues Fuel ▲2.9 Maintenance ＋7.0 Cargo &
Slide 14: Changes in Operating Profit (Market / Others)
Changes in Operating Profit（ Market ／ Others ） 1st Half Mar/18 (JPY Bn） ＋ stands for profit increase (revenue increase, cost reduction) ▲ stands for profit decrease (revenue decrease, cost increase) Impact from Currency Market ▲4.7Bn +6.6Bn Revenue ＋1.7Bn (+7.2%) Cost ▲6.4Bn (Excl. Market Impact) Fu
Slide 15: International Passenger Operations
International Passenger Operations International Passenger Change in Revenue （JPY Bn） 1st Half 1st Half 2ndQuarter ＋16.1Bn y/y y/y Mar/17 Mar/18 (Jul-Sep)(4) (＋7.6%) Passenger Revenue 213.1 229.3 ＋7.6% 123.7 ＋8.9% ▲0.1 229.3 (JPY Bn) Passengers ＋16.2 4,213 4,210 ▲0.1% 2,172 ＋0.5% (’000) 213.1 ASK 25
Slide 16: Domestic Passenger Operations
Domestic Passenger Operations Domestic Passenger Change in Revenue （ JPY Bn ） 1st Half 1st Half 2ndQuarter y/y y/y Mar/17 Mar/18 (Jul-Sep)(4) ＋11.6Bn Passenger Revenue (＋4.6%) 253.3 265.0 ＋4.6% 148.8 ＋3.4% (JPY Bn) ・Increase in individual passengers (+) Passengers ・Recovery from a plunge in demand b
Slide 17: Major Operating Expense Items
Major Operating Expense Items Operating Expenses 1st Half 1st Half 2nd Quarter (JPY Bn) Diff. y/y Diff. y/y Mar/17 Mar/18 (Jul-Sep)(3) Fuel 99.0 101.9 ＋2.9 ＋2.9% 51.6 ＋1.9 ＋3.9% Landing and navigation fees 40.6 41.2 ＋0.6 ＋1.5% 21.1 ＋0.4 ＋2.4% Maintenance 27.6 35.8 ＋8.1 ＋29.6% 18.0 ＋4.4 ＋32.3% Sales
Slide 18: 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 September 2017) (JPY Bn) Volume 100% 120 FX loaded/ Fuel FX Hedging Market +3.4 80% ▲9.9 100 +9.4 60% Approx. Approx. 40% 40% ＋2.9Bn 101.9 40% Approx. Approx. 80 99.0 (＋2.9%) 20% 20% 20% Appro
Slide 19: Major Balance Sheet Items and Cash Flow Items
Major Balance Sheet Items and Cash Flow Items Balance Sheet End of Mar/17 End of 1st Half Mar/18 (JPY Bn) Diff. 2017/3/31 2017/9/30 Total Assets 1,728.7 1,786.9 ＋58.1 Cash and Deposits (1) 404.0 418.1 ＋14.1 Balance of Interest-bearing Debt (2) 116.0 102.9 ▲13.1 Future Rental Expenses under Operating
Slide 20: FY2017 (Mar/18) Revised Earnings Forecast
《 References 》 FY2017 (Mar/18) Revised Earnings Forecast P/L Operational Preconditions FY2017 FY2017 FY2017 FY2017 FY2016 (JPY Bn) Result Previous New y/y Diff. Previous New Forecast Forecast Forecast Forecast Operating Revenue 1,288.9 1,348.0 1,366.0 ＋77.1 +18.0 ASK* Int’l +2.7% ＋2.7% International
Slide 21: FY2017 (Mar/18) Revised Earnings Forecast
《 References 》 FY2017 (Mar/18) Revised Earnings Forecast Balance Sheet End of FY2016 End of FY2017 End of FY2017 （JPY Bn） Diff. Results Previous Forecast New Forecast Total Assets 1,728.7 1,803.0 1,820.0 ＋17.0 Balance of Interest-bearing debts 116.0 133.0 130.0 ▲3.0 Shareholders’ Equity 972.0 1,038.
Slide 22: Earnings Forecast Mar/2018 (Air transportation Segment)
《 References 》 Earnings Forecast Mar/2018（ Air transportation Segment ） y/y （%） Mar/2017 Mar/2018 International Passenger Operations Full-year 1st Half 2nd Half Results Forecast （Forecast） （Result） (Forecast) Passenger Revenue (JPY Bn) 415.2 453.0 ＋9.1% ＋7.6% ＋10.7% Passengers (’000) 8,394 8,468 ＋0.
Slide 23: Revenue of International Routes by Geographic Segment
《 References 》 Revenue of International Routes by Geographic Segment Passenger Revenue Proportion of whole Int’l 1st Half 2nd Quarter (%) Mar/17 Mar/18 y/y y/y 2nd Quarter 1st Half 1st Half America ＋11.7% ＋11.2% 27% 28% 27% Europe ＋17.4% ＋19.6% 16% 17% 18% Asia/Oceania ＋2.8% ＋5.6% 32% 31% 29% China
Slide 24: Number of Aircraft
《 References 》 Number of Aircraft End of Mar/17 End of 1st Half Mar/18 (2017/3/31) (2017/9/30) 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 40 0 40 40
Slide 25: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations, Japan Airlines
Slide 26: 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