Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q1 FY2017 Earnings Presentation
34 slides from Japan Airlines's earnings presentation, Jul 31, 2017
Slide 1: Financial Results 1st Quarter Mar/2018 (FY2017)
JAPAN AIRLINES Co., Ltd. Financial Results 1st Quarter Mar/2018（FY2017） July 31, 2017
Slide 2: Today's Topics
Today’s Topics P.1 P.2 P.3 P.4~ P.6~ P.15~
Slide 3: Overview of Financial Results for 1st Quarter Mar/18
Overview of Financial Results for 1st Quarter Mar/18 1st Quarter Mar/18 (FY2017) 1st quarter resulted in an increase in both revenue and profit compared to the previous year. Operating Revenue Operating profit・Net profit （JPY Bn） （JPY Bn） （ OP Margin ） 340 30 12% Operating Net Operating Profit Mar
Slide 4: Overview of first-quarter financial results (commentary)
Now, I will present an overview of the first-quarter financial results for the fiscal year ending March 31, 2018. Operating revenue increased 17.6 billion yen, up 5.9% year-on-year, to 314.8 billion yen. Operating profit increased 2.6 billion yen, up 12.0% year-on-year, to 24.7 billion yen, an
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 has been made based on the 1st quarter results. Operating profit・Net profit Change in operating profit （ JPY Bn ） （Operating Profit Margin, ROIC） 175 20% （ JPY Bn ） Oper
Slide 6: Revised earnings forecast (commentary)
Given our first quarter results, we have revised FY2017 earnings forecast to announce today. We have revised upward operating revenue by 9 billion yen to 1,348 billion yen, operating profit by 11 billion yen to 153 billion yen, and net profit by 8 billion yen to 108 billion yen, respectively. 2-
Slide 7: Revised Dividend Forecast
Revised Dividend Forecast Dividend forecast FY2016 Previous New Results Forecast Forecast (APR 28) Net Profit (1) 164.1 100.0 108.0 (JPY Bn) Dividends per share Income Tax-Deferred ▲31.6 5.0 5.0 (JPY Bn) （JPY） Income available for 132.5 105.0 113.0 96 dividends (JPY Bn) × 25% × 30% × 30% 94 Total am
Slide 8: Revised dividend forecast (commentary)
Together with the upward revision in earnings forecast, we have also revised dividend forecast. The interim and year-end dividends will be 48 yen each, which in total will become 96 yen per share. We will continue our best efforts to further increase the dividends. 3-S
Slide 9: Recent Topics
Recent Topics Route Network, Products & Services, Credit Ratings Int’l Doms (1) Launch Narita - Melbourne/787-8(SS8 ) Provide Free Inflight Wi-Fi Services （Sep 1, 2017～） ・JAL decided to provide free inflight Wi-Fi services to become ・By adding new route to Melbourne, a growing city, the the most
Slide 10: Recent topics (commentary)
On this page, I am going to show some of our management topics. For our international routes, we will launch Narita-Melbourne services on September 1st, and Narita-Kona on September 15 th, respectively. We will also increase frequencies on both routes of Haneda-London and Narita-Bangkok on Octob
Slide 11: Recent Topics (Innovation of Passenger Service System)
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 Investment: ＊Reservation, ticketing system
Slide 12: Passenger Service System (commentary)
This explains the effects by innovating our Passenger Service System. After spending 5 years of time and approximately 80 billion yen for its development , the new system will go live on November 16, 2017. Although relevant expenses are expected to increase due to depreciation and staff traini
Slide 13: Consolidated Financial Results
Consolidated Financial Results Consolidated Financial Results 1ST QUARTER Mar/18 1st Quarter 1st Quarter （JPY Bn） Diff. y/y Mar/17 Mar/18 Operating Revenue 297.2 314.8 ＋17.6 ＋5.9% Air Transportation Segment 268.3 285.8 ＋17.5 ＋6.5% Operating Expense 275.1 290.0 ＋14.9 ＋5.4% Air Transportation Segment
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Slide 15: Changes in Operating Profit (Revenues / Expenses)
Changes in Operating Profit（ Revenues ／ Expenses ） 1st Quarter Mar/18 （ JPY Bn ） ＋ stands for profit increase (revenue increase, cost reduction) ▲ stands for profit decrease (revenue decrease, cost increase) Impact from Currency Market ▲0.9Bn ＋2.6Bn Revenue ▲0.6Bn (＋12.0%) Cost ▲0.3Bn Fuel ▲0.3Bn Ex
Slide 16: Changes in operating profit (commentary)
Now, I will explain about the changes in operating profit. Revenue from International Passenger increased by 6.0 billion yen due to strong high yield demand out of Japan as well as more fuel surcharge revenues and such. Revenue from Domestic Passenger increased 6.7 billion yen year on year, beca
Slide 17: Changes in Operating Profit (Market / Others)
Changes in Operating Profit（ Market ／ Others ） 1st Quarter Mar/18 ＋ stands for profit increase (revenue increase, cost reduction) ▲ stands for profit decrease (revenue decrease, cost increase) （ JPY Bn ） +2.6Bn (+12.0%) Revenue Cost increase increase +15.8 ▲15.1 FX excl. Fuel Hedging Fuel (excl.Hedg
Slide 18: Changes in operating profit, market and others (commentary)
This page explains changes in operating profit from the viewpoints of market impact and others. Despite fuel cost increase for higher fuel prices, fuel surcharge revenue and the hedging effect contributed to increase operating profit by 1.9 billion yen against the previous year. Apart from Mar
Slide 19: International Passenger Operations
International Passenger Operations International Passenger Change in Revenue （ JPY Bn ） 1st Quarter 1st Quarter y/y ＋6.0Bn Mar/17 Mar/18 (＋6.1%) Passenger Revenue 99.5 105.5 ＋6.1% 105.5 (JPY Bn) ▲0.7 Passengers ＋6.7 2,052 2,038 ▲0.7% 99.5 (’000) Decline of passengers number on Hawaii and ASK South K
Slide 20: International passenger operations (commentary)
On international routes, number of passengers decreased 0.7% year on year as a result of less capacity with expanding JAL SKY SUITE products, however, revenue per passenger rose by 6.8% year on year for our revenue management initiatives and such. As a result, international passenger revenue sto
Slide 21: Domestic Passenger Operations
Domestic Passenger Operations Domestic Passenger Change in Revenue 1st Quarter 1st Quarter （ JPY Bn ） y/y Mar/17 Mar/18 ＋6.7Bn Passenger Revenue (＋6.1%) 109.4 116.1 ＋6.1% (JPY Bn) ・Increase in individual passengers (+) Passengers ・Recovery from a plunge in demand by 7,465 8,070 ＋8.1% the 2016 Kumamo
Slide 22: Domestic passenger operations (commentary)
Next, on domestic routes. While number of passengers increased 8.1% year on year thanks to more group passengers due to the recovery from a plunge in demand by the 2016 Kumamoto Earthquakes and increased individual passengers mainly with promotional fares, revenue per passenger decreased 1.8% ye
Slide 23: Major Operating Expense Items
Major Operating Expense Items Operating Expenses 1st Quarter 1st Quarter （JPY Bn） Diff. y/y Mar/17 Mar/18 Fuel 49.3 50.3 ＋0.9 ＋1.9% Landing and navigation fees 20.0 20.1 ＋0.1 ＋0.7% Maintenance 14.0 17.8 ＋3.7 ＋26.9% Sales Commissions 3.9 4.0 ＋0.1 ＋4.8% (Air Transport) Aircraft (1) 24.7 26.1 ＋1.4 ＋5.8
Slide 24: Operating expense items (commentary)
Please refer to page 11 for major operating expense items, which stood almost as planned. We will continue to make utmost efforts to control our costs. We continuously aim to maximize our profit as well as improve our corporate value by realizing the JAL VISION of “transforming JAL into a true g
Slide 25: 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 June 2017) (JPY Bn) Volume 100% increase/ FUEL FX 60 Market FX Hedging ▲6.4 80% +7.1 +0.3 60% 40 Approx Approx ＋0.9Bn 40% 40% 49.3 (＋1.9%) 50.3 40% Approx Approx 20 15% 15% 20% Approx Approx 5
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Slide 27: Major Balance Sheet Items
Major Balance Sheet Items Consolidated Balance Sheet Summary as of end of 1st Quarter Mar/18 End of End of Mar/17 1st Quarter (JPY Bn) Diff. 2017/3/31 Mar/18 2017/6/30 Total Assets 1,728.7 1,731.3 ＋2.5 Cash and Deposits (1) 404.0 388.6 ▲15.4 Balance of Interest-bearing Debt (2) 116.0 107.0 ▲9.0 Futu
Slide 28: Major Cash Flow Items
Major Cash Flow Items （JPY Bn） 1st Quarter 1st Quarter Diff. Mar/17 Mar/18 Profit before income taxes 20.2 25.2 ＋4.9 Depreciation and Amortization 23.4 25.5 ＋2.1 Other 17.2 19.0 ＋1.8 Cash Flow from Operating Activities 60.9 69.9 ＋8.9 Capital Expenditure(1) ▲73.9 ▲50.5 ＋23.4 Other 8.1 8.6 ＋0.5 Cash F
Slide 29: FY2017 (FY Mar/18) Revised Earnings Forecast
《 References 》 FY2017 (FY Mar/18) Revised Earnings Forecast P/L Operational Preconditions (Unchanged) FY2016 FY2017 FY2017 (JPY Bn) Diff. FY2017 Result Plan New Forecast Plan Operating Revenue 1,288.9 1,339.0 1,348.0 +9.0 ASK* Int’l +2.7% International Passenger 415.2 455.0 456.0 +1.0 Doms +1.4% Dom
Slide 30: FY2017 (FY Mar/18) Revised Earnings Forecast
《 References 》 FY2017 (FY 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 1,793.0 1,803.0 ＋10.0 Balance of Interest-bearing debts 116.0 133.0 133.0 - Shareholders’ Equity 972.0 1,031.
Slide 31: Revenue of International Routes by Geographic Segment
《 References 》 Revenue of International Routes by Geographic Segment Passenger Revenue Revenue Passengers Carried y/y Component Ratios (‘000) 1Q Mar/17 1Q Mar/18 y/y (%) 1Q Mar/18 1Q Mar/17 1Q Mar/18 America 291 312 ＋7.0% America ＋12.3% 27% 28% Europe 159 182 ＋14.2% Europe ＋14.8% 15% 16% Asia/Oceani
Slide 32: Number of Aircraft
《 References 》 Number of Aircraft End of Mar/17 End of 1st quarter Mar/18 (2017/3/31) (2017/6/30) 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
Slide 33: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations, Japan Airlines
Slide 34: 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