Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — FY2019 Earnings Presentation
29 slides from Japan Airlines's earnings presentation, Apr 30, 2020
Slide 1: Financial Results MAR/2020 (FY2019)
JAPAN AIRLINES Co., Ltd. Financial Results MAR/2020（FY2019） April 30th, 2020 ©Japan Airlines, ALL rights reserved.
Slide 2: Today's Topics
Today’s Topics OVERVIEW OF FINANCIAL RESULTS FOR MAR/20 P.3 DETAILS OF FINANCIAL RESULTS FOR MAR/20 P.5 REFERENCES P.13 Japan Institute of Information Technology FTE IT Award Accessibility Leadership Award SKYTRAX SKYTRAX Health and Productivity The World’s Best Economy Class Management Brand The Be
Slide 3: Overview of Financial Results for Mar/20
Overview of Financial Results for Mar/20 ✓ The coronavirus spread in Q4 rapidly decreased Int’l and Dom PAX demand ✓ Operating Profit decreased in spite of cost cut through capacity reduction in large scale ✓ Net Profit further decreased due to Income Tax Deferred Operating Profit・Net Profit (1) Ope
Slide 4: Operating Revenue and Profit commentary
◼ Operating Revenue had been par to the previous year up to the third quarter, however, in and after February, demand both in International Passenger and Domestic Passenger rapidly fell because of the coronavirus spread. As a result, Operating Revenue decreased by 76 billion yen to 1 trillion and 41
Slide 5: The Impact of the Coronavirus Spread
The Impact of the Coronavirus Spread ✓ Travel demand rapidly fell in and after Feb, due to travel restrictions/quarantines in many countries and suspension of events with large crowds or closure of theme parks in Japan ✓ Air traffic demand rapidly fell in all destinations, including domestic, in and
Slide 6: Commentary on passenger numbers and operating profit vs forecast
◼ The left-hand graph shows the passenger number against the previous year, and the right-hand graph shows up and down of Operating Profits from the previous forecast of 140 billion yen. ◼ In March, International Passenger number went down by about 70% year-on-year and Domestic Passenger number fell
Slide 7: Consolidated Financial Results
Consolidated Financial Results 4th Quarter （JPY Bn） FY2018 FY2019 Diff. y/y (Jan-Mar)(6) Diff. y/y Operating Revenue 1,487.2 1,411.2 ▲76.0 ▲5.1% 280.3 ▲75.8 ▲21.3％ International Passenger 530.6 476.2 ▲54.4 ▲10.3% 84.0 ▲43.1 ▲33.9％ Domestic Passenger 528.0 514.6 ▲13.4 ▲2.6% 99.1 ▲24.2 ▲19.6％ Cargo /
Slide 8: Details of FY2019 performance
◼ This page shows the details of the FY2019 performance. ©Japan Airlines, ALL rights reserved. 5-S
Slide 9: Changes in Operating Profit (Revenues/Expenses)
Changes in Operating Profit（ Revenues/Expenses ） Mar/20 (FY2019) （JPY Bn） ＋ stands for profit increase (revenue increase, cost decrease) ▲75.5 Bn ▲ stands for profit decrease (revenue decrease, cost increase) ASK y/y： ▲0.6% (▲42.9%) RPK y/y： ▲4.9％ ▲67.4 Bn (▲38.3%) Int’l Passenger “Other Revenues” F
Slide 10: Commentary on changes in Operating Profit
◼ This page explains the changes in Operating Profit. ◼ Operating Revenue decreased in International Passenger, Domestic Passenger and Cargo and Mail. In total, it decreased by 76 billion yen year-on-year. ◼ For Expenses, Aircraft cost increased as front-loaded cost for Haneda Airport Expansion, how
Slide 11: Changes in Operating Profit (Market/Others)
Changes in Operating Profit（ Market/Others ） Mar/20 (FY2019) (JPY Bn） ＋ stands for profit increase (revenue increase, cost decrease) Impact From ▲ stands for profit decrease (revenue decrease, cost increase) ▲75.5 Bn Currency Market +1.0 Bn (▲42.9%) Revenues ▲4.7 Bn Expenses +5.7 Bn ▲67.4 Bn Fuel Vo
Slide 12: Market impact commentary
◼ This slide shows the market impact to Operating Profit, which had negative impact of 7.2 billion yen year-on-year. ©Japan Airlines, ALL rights reserved. 7-S
Slide 13: International/Domestic Passenger Operations
International/ Domestic Passenger Operations International Passenger Domestic Passenger (4) (4) 4th Quarter 4th Quarter FY2018 FY2019 y/y (Jan-Mar) y/y FY2018 FY2019 y/y (Jan-Mar) y/y Passenger Revenue 530.6 476.2 ▲10.3% 84.0 ▲33.9% 528.0 514.6 ▲2.6% 99.1 ▲19.6% (JPY Bn) Passengers 9,128 8,277 ▲9.3%
Slide 14: Passenger revenue commentary
◼ International Passenger Revenue decreased to 476.2 billion yen, down 10.3%, because of the coronavirus spread in February and March, and sluggish demand especially in outbound business demand from Japan, up to February. ◼ Revenue per Passenger decreased by 1.0% but this is due to fuel surcharge de
Slide 15: Major Operating Expense Items
Major Operating Expense Items Operating Expenses 4th Quarter (4) （JPY Bn） FY2018 FY2019 Diff. y/y (Jan-Mar) Diff. y/y Fuel 251.2 243.4 ▲7.8 ▲3.1% 53.7 ▲5.7 ▲9.6％ Landing and navigation fees 86.3 84.8 ▲1.5 ▲1.8% 19.5 ▲1.8 ▲8.8％ Maintenance 72.9 75.0 +2.0 +2.9% 15.3 ▲2.5 ▲14.0％ Sales commissions (Air
Slide 16: Operating expense commentary
◼ Now this slide shows the details of Operating Expense Items. The figures in brackets exclude the depreciation method change, which is 1 trillion and 302.5 billion yen, 0.7% down year-on-year. ◼ In the fourth quarter itself, Operating Expense decreased by 26.9 billion yen, down 8.3% year-on-year, e
Slide 17: Major Balance Sheet Items and Cash Flow Items
Major Balance Sheet Items and Cash Flow Items Balance Sheet End of End of （JPY Bn） Diff. FY2018 FY2019 （1）Certificate of Deposits etc. included Total Assets 2,030.3 1,859.3 ▲170.9 （2）82.7 billion yen injection to Pension Fund included to the end of FY2019 Cash and Deposits(1) (2) 522.0 329.1 ▲192.9
Slide 18: Balance sheet and cash flow commentary
◼ On this slide, you will see Balance Sheet and Cash Flow. ◼ Please note that there should be no problem with the decrease of 192.9 billion yen in Cash and Deposits, however, in the end of this March, we were able to maintain the same level of cash amounts as the end of the third quarter, Dec 31. It
Slide 19: FY20 Recent Outlook
FY20 Recent Outlook ✓ Prompt capacity cut to the rapidly-falling demand, down by about 95% on International Routes and by about 70% on Domestic Routes. ✓ Actively increase cargo flights using passenger aircraft midst the excessive demand ✓ FY20 performance forecast unclear due to the unforeseeable c
Slide 20: Recent outlook commentary
◼ On this page, I will explain the recent outlook. ◼ Since April, passenger demand has been falling due to travel restriction or a stay-at-home order in many countries. Even in Japan, a stay-at-home request is further decreasing demand. We promptly responded to decrease capacity. ◼ The latest capaci
Slide 21: Immediate Actions to the coronavirus spread
Immediate Actions to the coronavirus spread ✓ Strive for cost reduction, through variable cost reduction with prompt capacity cut and fixed cost reduction, CAPEX reduction and securing liquidity at hand Cost Reduction CAPEX Reduction FY2020 Reduction FY2020 CAPEX Target Revenue and Capacity-linked C
Slide 22: Countermeasures commentary
◼ On this page, I will explain our prompt countermeasures we are taking and steadily to endure this critical situation. ◼ We will cut capacity-linked costs including fuel, maintenance or landing and navigation fees by promptly adjusting capacities. Also, we will cut fixed costs by conducting company
Slide 23: Shareholder return commentary
◼ I would like to explain shareholders return. ◼ The coronavirus spread is giving a tremendous impact to airline industry. Our performance would be severely affected if this situation continues. ◼ In this situation, securing liquidity at hand should be the first priority for us right now. Therefore,
Slide 24: Closing remarks and reference pages
◼ Following pages show Shareholder Return Results, Revenue of International Routes by Geographic Segment and Number of Aircraft we use. ◼ This ends my presentation. Thank you for your attention. ©Japan Airlines, ALL rights reserved. 12-S
Slide 25: Shareholders return
《Reference》 Shareholders return Shareholders Return Result Total Shareholder Return History （FY2012～FY2019） FY2018 FY2019 （JPY Bn） (Result) (Result) 250 90% Dividends per share (JPY) 110 55 72.8% Interim Dividend 55 55 200 70% 171.6 174.4 166.2 164.1 Year-End Dividend 55 - 150 149.0 150.8 135.4 47.7
Slide 26: Revenue of International Routes by Geographic Segment
《 Reference 》 Revenue of International Routes by Geographic Segment Passenger Revenue 4Q Component Ratio FY2019 (%) 3Months y/y FY2018 FY2019 4Q 3Months y/y America ▲0.2% ▲22.2% 26% 29% 30% Europe ▲9.7% ▲28.7% 16% 16% 15% Asia/Oceania ▲12.3% ▲35.7% 33% 32% 34% China ▲20.6% ▲63.7% 11% 10% 6% Hawaii/G
Slide 27: Number of Aircraft
《 Reference 》 Number of Aircraft End of Mar/19 End of Mar/20 (March 31, 2019) (March 31, 2020) Diff. Owned Leased Total Owned Leased Total Airbus A350-900 0 0 0 4 1 5 +5 Boeing 777-200 12 0 12 11 0 11 ▲1 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
Slide 28: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations, Japan Airlines ©Japan ©Japan Airlines, ALL Airlines, ALL rights rightsreserved. reserved.
Slide 29: 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