Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — FY2014 Earnings Presentation

27 slides from Japan Airlines's earnings presentation, Apr 30, 2015

1. Slide 1: Mar/2015 (FY2014) Financial Results

   Mar/2015 (FY2014) Financial Results 30 April, 2015

2. Slide 2: Contents

   Contents P.2 P.3 P.4 P.6 * HAC, Hokkaido Air System has been incorporated from the second half of the fiscal year 2014. 1

3. Slide 3: Overview of FY Mar/15 Financial Results

   Overview of FY Mar/15 Financial Results Operating Revenue Operating Profit （JPY Bn） （JPY Bn） 1,400 200 20% 1,344.7 1,309.3 +35.3Bn 179.6 +12.8Bn (+2.7%) 166.7 (+7.7%) 16% 1,200 150 13.4% 12% 12.7% Operating Profit margin 1,000 100 8% Mar/2014 Full-Year Mar/2015 Full-year Mar/2014 Full-Year Mar/2015

4. Slide 4: Dividend for FY Mar/15

   Dividend for FY Mar/15 Enhancement for Shareholders return Dividend per share for FY Mar/15 Approx. 20% of full-year Consolidated Net 104.00JPY Income excluding Income Tax-Deferred Mar/2015 Full-year Dividend Calculation FY Mar/14 New Announcement on Announcement January 30,2015 Consolidated Net Inc

5. Slide 5: Forecast Overview of Full-Year Mar/2016 (FY2015)

   Forecast Overview of Full-Year Mar/2016 (FY2015) Operating Revenue Operating Profit （JPY Bn） （JPY Bn） 1,400 200 20% 1,344.7 1,328.0 179.6 ▲16.7Bn ▲7.6Bn 172.0 (▲1.2%) (▲4.3%) 16% 1,200 150 12% Operating 13.4% 13.0% Profit margin 1,000 100 8% Mar/2015 Full-Year Mar/2016 Full-Year Mar/2015 Full-Year M

6. Slide 6: Progress of Medium Term Management Plan

   Progress of Medium Term Management Plan Route Network Development Products and Services Enhancement Boeing 787-9 Int’l service “JAL SKY SUITE 787” unveiled ～Offers more space and comfort in JAL economy class～ 【New Route】 Nagoya(Chubu)＝Bangkok Osaka(Kansai)＝Los Angeles Expand / penetrate divisional p

7. Slide 7: Mar/2015 (FY2014) Financial Results Details

   2015年3月期決算 業績詳細 Mar/2015 (FY2014) Financial Results Details 取締役専務執行役員 斉藤典和

8. Slide 8: Overview of Consolidated Financial Results

   Overview of Consolidated Financial Results Consolidated Financial Results 4Q  Operating revenue (JPY Bn) Mar/2014 Mar/2015 y/y (Jan-Mar) y/y Mar/2015 (1) reached 1,344.7 billion Operating Revenue 1,309.3 1,344.7 +2.7% 322.3 +0.9% yen,+2.7% year on year. Air Transportation Segment 1,166.6 1,196.2 +2

9. Slide 9: Changes in Operating Profit

   Changes in Operating Profit Mar/2015(FY2014) （JPY Bn） +12.8Bn Impact From Currency Market ▲17.0Bn (+7.7%) ASK y/y： +0.8% Revenue ＋10.2Bn Cost ▲27.2Bn RPK y/y： +1.6% Fuel ▲18.1Bn Sales of Expenses of travel travel Ex. Fuel ▲9.1Bn Agency, Agency, Other Incidental Incidental Aircraft Depreciation Reven

10. Slide 10: International Passenger Operations (Operating Results)

    International Passenger Operations (Operating Results) International Passenger 4Q(Jan-Mar)  Passenger revenue was 454.8 Mar/2014 Mar/2015 y/y y/y Mar/2015(1) billion yen, +3.9% year on year. Passenger Revenue 108.8 (JPY Bn) 437.5 454.8 +3.9% +2.5%  Revenue per Passenger was ASK (MN seat km) 46,235

11. Slide 11: International Passenger Operations (Change in Revenue)

    International Passenger Operations (Change in Revenue) Mar/2015(FY2014) (JPY Bn)  ASK increased due new routes and +17.2Bn more flights. (+3.9%) +4.7 454.8  Expansion of JAL SKY SUITE +12.5 777/767/787 As a result, revenue per passenger increased. 437.5 Strong demand for inbound passengers  Stro

12. Slide 12: Domestic Passenger Operations (Operating Results)

    Domestic Passenger Operations (Operating Results) Domestic Passenger Mar/2014 Mar/2015 y/y 4Q (Jan-Mar) y/y  Passenger revenue was 487.5 Mar/2015 (1) billion yen, similar level as the Passenger Revenue 487.4 previous year (JPY Bn) 487.5 +0.0% 114.5 +1.8% ASK (MN seat km) 37,084 36,306 ▲2.1% 8,848 +

13. Slide 13: Domestic Passenger Operations (Change in Revenue)

    Domestic Passenger Operations (Change in Revenue) Mar/2015(FY2014) (JPY Bn) +0.1Bn (+0.0%)  Change in customer mix ・Increase in percentage of passengers 487.4 ▲6.4 +6.5 487.5 using promotional fares such as “Tokubin Discount 21”  Implementation of various - Passenger Mix - Implementation of measur

14. Slide 14: Major Operating Expense Items

    Major Operating Expense Items Operating Expenses 4Q (JPY Bn) Mar/2014 Mar/2015 difference y/y (Jan-Mar) difference  Fuel costs decreased by Mar/2015 (1) 0.8 billion yen. Fuel 283.3 282.5 ▲0.8 ▲0.3% 59.4 ▲11.5 Landing fees 80.2 81.6 +1.4 +1.8% 20.3 +0.9  Aircraft leases decreased by 4.3 Bn JPY due

15. Slide 15: Impact of Fuel and FX Markets

    Impact of Fuel and FX Markets Hedge Ratio of Fuel Costs Transition of Fuel Cost by factors (As of End of FY Mar/15) 300 Approx. 100% 90% 283.3 ▲39.5 +20.6 282.5 Fuel FX 280 80% +18.1 260 60% Volume Approx. increase / 40% 240 Hedging etc 40% Market FX Approx. Approx. ▲0.8Bn 20% 10% 10% Approx. 5% App

16. Slide 16: Major Balance Sheet Items

    Major Balance Sheet Items Consolidated Balance Sheet Summary as of Mar/2015 End of FY2013 End of FY2014 (JPY Bn) difference 2014/3/31 2015/3/31 Total Assets 1,340.1 1,473.3 +133.1  The equity ratio Cash and Deposits 368.7 364.9 ▲3.7 increased by 1.2pt to 52.7% Balance of Interest-bearing Debt 134.2

17. Slide 17: Major Cash Flow Items

    Major Cash Flow Items (JPY Bn) FY Mar/14 FY Mar/15 Difference Net income before income taxes and minority interests 160.0 169.9 +9.8 Depreciation 82.7 85.8 +3.1 Other 5.1 5.3 +0.1 Cash Flow from Operating Activities 247.9 261.1 +13.1 Capital Expenditure (1) ▲164.5 ▲198.6 ▲34.0 Other ▲2.1 ▲0.6 +1.5 C

18. Slide 18: FY Mar/16 Earnings Forecast (Consolidated)

    FY Mar/16 Earnings Forecast (Consolidated) FY Mar/15 FY Mar/16 (JPY Bn) difference Results Forecast FY3/15 FY3/16 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% +5.9% Ope

19. Slide 19: Changes in Operating Profit/ Forecast Mar/2016

    Changes in Operating Profit/ Forecast Mar/2016 (JPY Bn) Impact From Currency Market ▲14.0Bn Revenue ＋12.0Bn Cost ▲26.0Bn Fuel ▲16.0Bn ▲7.6Bn Ex. Fuel ▲10.0Bn 179.6 ▲9.8 +17.5 ▲8.5 +6.4 ▲1.3 ▲11.9 172.0 Mar/2015 Int'l Passenger Domestic Cargo & Mail Other Revenue Fuel Other Costs Mar/2016 Full year P

20. Slide 20: Mar/2016 Earnings Forecast (Consolidated Balance Sheet / Cash Flow)

    Mar/2016 Earnings Forecast (Consolidated Balance Sheet / Cash Flow) Maintain equity ratio of 50% or over and improve financial stability Consolidated Balance Sheet Consolidated Cash Flow Mar/2015 Mar/2016 Mar/2015 Mar/2016 （JPY Bn） Difference （JPY Bn） Difference Result Forecast Result Forecast Total

21. Slide 21: Supplemental References

    SUPPLEMENTAL REFERENCES

22. Slide 22: Supplemental Reference: 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 4Q(Jan-Mar) 4Q(Jan-Mar) (%) Mar/2014 Mar/2015 y/y y/y (‘000) Mar/2014 Mar/2015 y/y y/y Mar/2015 Mar/2015 Trans Pacific 34.0% 35.5% +1.5pt 33.5% ▲0.0pt Trans Paci

23. Slide 23: Supplemental Reference: Number of Aircraft in Service

    《Supplemental Reference》 Number of Aircraft in Service Mar/2015 End of Mar/2014 End of Mar/2015 Difference Owned Leased Total Owned Leased Total Boeing 777-200 15 0 15 13 0 13 ▲2 Boeing 777-200ER 11 0 11 11 0 11 -- Boeing 777-300 7 0 7 7 0 7 -- Boeing 777-300ER 13 0 13 13 0 13 -- Large-sized Total 4

24. Slide 24: Earnings Forecast Mar/2016: International Passenger Operations

    《Supplemental Reference》 Earnings Forecast Mar/2016（ Air transportation Segment ） International Passenger Operations y/y （%） End of Mar/2015 End of Mar/2016 Result Forecast 1H 2H (Forecast) (Forecast) Passenger Revenue (JPY Bn) 454.8 ▲2.1% ▲2.5% ▲1.6% ASK (MN seat km) 47,696 +3.1% +2.1% +4.1% RPK (M

25. Slide 25: Earnings Forecast Mar/2016: Domestic Passenger Operations

    《Supplemental Reference》 Earnings Forecast Mar/2016（ Air transportation Segment ） Domestic Passenger Operations y/y （%） End of Mar/2015 End of Mar/2016 Result Forecast 1H 2H (Forecast) (Forecast) Passenger Revenue (JPY Bn) 487.5 +1.4% +1.4% +1.4% ASK (MN seat km) 36,306 +0.7% ▲0.6% +2.1% RPK (MN pas

26. Slide 26: Contact: Finance, Japan Airlines

    Contact: Finance, Japan Airlines +81-3-5460-3068

27. Slide 27: 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

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