Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q3 FY2016 Earnings Presentation
24 slides from Japan Airlines's earnings presentation, Jan 31, 2017
Slide 1: Financial Results 3rd Quarter Mar/2017 (FY2016)
JAPAN AIRLINES Co., Ltd. Financial Results 3rd Quarter Mar/2017（FY2016） January 31st, 2017
Slide 2: Today's Topics
Today’s Topics P.1 P.3 P.6 P.7～ From the first quarter of this fiscal year, figures for Revenue Passengers Carried, ASK, RPK and Load Factor include “Marketing Carriers’ on code-sharing flights operated by JAL”. As a result, second-quarter ASK, RPK and Load Factor of the previous year reflect values
Slide 3: Overview of 3rd quarter FY2016 Results
Overview of 3rd quarter FY FY2016 Results Operating Revenue Operating Profits （JPY Bn） OP Margin （JPY Bn） 180 170.0 20% 1,100 ▲47.9Bn 160 ▲32.7Bn 18% （▲4.7%） (▲19.2%) 1,023.4 140 137.3 16% 16.6% 1,000 975.4 120 14% 100 14.1% 12% 80 10% 900 3Q MAR/16 3Q MAR/17 3Q MAR/16 3Q MAR/17 Fuel/FX Markets Op
Slide 4: FY2016 Consolidated Earnings Forecast (Not Changed)
FY2016 Consolidated Earnings Forecast(Not Changed) Maximizing the profit to achieve the target rather than revising the forecast Aforementioned on October 31st,2016 Consolidated Financial Results & Forecasts Operational Preconditions FY2015 FY2016 FY2015 FY2016 （JPY Bn） Result Forecast Results For
Slide 5: FY2016 Dividend Forecast
FY2016 Dividend Forecast Dividend forecast for FY2016 Appx. 25% of Net Income*1 for the fiscal year excluding Income Tax-Deferred Total amount for shareholder’s return（JPY Bn） FY2015 FY2016 Results Forecast 60.0 Share 1 自己株 Net Income* (JPY Bn) 174.4 161.0 Buyback 50.0 式取得 30.0 300 Income Tax-Deferr
Slide 6: Progress of measures to improve profitability
Progress of measures to improve profitability Reinforce Divisional Profitability Management System and maximize profits Measures to increase revenue 第2四半期 FY2016Q2 下期 2nd Half FY2016 Increase unscheduled flights Increase flights on Honolulu and Bangkok routes Int’l Passenger Implement measures to bo
Slide 7: Business Direction from FY2017
Business Direction from FY2017 ※Reprints of CRP2016 Material Medium and long term Management Targets from FY2017 ～To increase corporate value～ We will appropriately respond to passenger demand growth and continue to grow based on profitability and stability, and thus increase corporate value Profita
Slide 8: Recent Topics
Recent Topics Route Networks & Services INT Tokyo(Haneda)=New York(J.F. Kennedy) DOM route will be in service from April 1st,2017 JAL SKY NEXT is expanding onto more routes ・Installment of JAL SKY NEXT has been completed on all 77 aircraft. ・Additional installment on Japan Transocean Air(JTA)is
Slide 9: Consolidated Financial Results
Consolidated Financial Results Consolidated Financial Results 3rd Quarter Mar/17 3Q 3Q 3rd Quarter （JPY Bn） Diff. y/y ratio Diff. y/y ratio FY2015 FY2016 (Oct-Dec)(5) Revenue 1023.4 975.4 ▲47.9 ▲4.7% 323.5 ▲11.9 ▲3.6% Air Transportation Segment 923.2 877.2 ▲46.0 ▲5.0% 291.5 ▲11.4 ▲3.8% Operating Exp
Slide 10: Changes in Operating Profit
Changes in Operating Profit 3Q FY MAR/17 ▲32.7Bn （JPY Bn） Impact from Currency Market +15.7Bn Revenue ▲16.8Bn (▲19.2%) Cost +32.5Bn Fuel +16.5Bn Ex. Fuel +16.0Bn ASKy/y： ▲0.4% RPKy/y： +0.3% Int’l Maintenance Aircraft Passenger Fuel ▲3.3 ▲1.0 ▲31.5 Domestic Personnel Passenger Other Cost Other ▲8.8%
Slide 11: International Passenger Operations (Operating Results)
International Passenger Operations(Operating Results) International Passenger 3Q 3Q 3rd Quarter y/y ratio Passenger Revenue was 314.4 y/y ratio ※Figures exclude mileage travelers. FY2015 FY2016 (Oct-Dec) (4) billion yen, declined by 31.5 Passenger Revenue billion yen y/y. （JPY Bn） 345.9 314.4 ▲9.1
Slide 12: International Passenger Operations (Change in Revenue)
International Passenger Operations(Change in Revenue) 3Q FY MAR/17 Although net revenue per （JPY Bn） ▲31.5Bn passenger increased through (▲9.1%) revenue management and the expansion of JAL SKY SUITE 345.9 operated routes, revenue per passenger declined due to zero ▲28.1 fuel surcharge from April.
Slide 13: Domestic Passenger Operations (Operating Results)
Domestic Passenger Operations (Operating Results) Domestic Passenger 3Q 3Q 3rd Quarter y/y ratio y/y ratio Passenger revenue was ※Figures exclude mileage travelers. FY2015 FY2016 (Oct-Dec)(4) 380.8 billion yen, down 3.2 Passenger billion yen y/y. Revenue 384.1 380.8 ▲0.9% 127.5 +0.1% （JPY Bn） ASK
Slide 14: Domestic Passenger Operations (Change in Revenue)
Domestic Passenger Operations (Change in Revenue) 3Q FY MAR/17 Revenue per passenger mainly of （JPY Bn） ▲3.2Bn demand boosting fares decreased, (▲0.9%) due to price competition with other airlines 384.1 380.8 ▲7.1 Revenue per passenger decreased +3.8 due to the way the days of Holidays in Septem
Slide 15: Major Operating Expense Items
Major Operating Expense Items Operating Expenses 3Q 3Q Fuel costs dropped due to the （JPY Bn） 3rd Quarter Diff. y/y ratio Diff. y/y ratio stronger yen and lower fuel prices, FY2015 FY2016 (Oct-Dec)(4) but rising personnel costs led to Fuel 180.7 147.8 ▲32.8 ▲18.2% 48.7 ▲9.3 ▲16.1% operating expens
Slide 16: Impact of Fuel and FX Markets
Impact of Fuel and FX Markets Hedging Ratio of Fuel Costs Transition of Fuel Cost by Factors (As of End of 3Q FY2016) (JPY Bn) Market ▲32.8Bn 100% 180 (▲18.2%) FUEL FX ▲19.8 Volume 80% FX increase/ 160 Approx. Hedging 60% 180.7 ▲16.5 Approx.50% +3.5 40% Approx. 40% 140 30% 147.8 20% Approx. 5% 120 3
Slide 17: Major Balance Sheet Items
Major Balance Sheet Items Consolidated Balance Sheet Summary as of End of Q3 FY2016 End of Q3 （JPY Bn） End of FY2015 FY2016 Diff. 2016/3/31 2016/12/31 Total Assets 1,578.9 1,625.3 +46.3 Cash and Deposits (1) 420.3 372.6 ▲47.6 Balance of Straight Bond was issued in Interest-bearing Debt (2) 92.6 96
Slide 18: Major Cash Flow Items
Major Cash Flow Items （JPY Bn） 3Q FY2015 3Q FY2016 Diff. Net income before income taxes and minority 172.3 134.3 ▲38.0 interests Depreciation and Amortization 65.8 70.9 +5.1 Other ▲14.1 ▲24.2 ▲10.0 Cash Flow from Operating Activities 223.9 181.0 ▲42.9 Capital Expenditure(1) ▲160.6 ▲177.5 ▲16.8 Other
Slide 19: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations, Japan Airlines
Slide 20: Supplemental Reference: Revenue of International Routes by Geographic Segment
《Supplemental Reference》 Revenue of International Routes by Geographic Segment Passenger Revenue Component Ratio - From the first quarter of this fiscal year, figures for Revenue Passengers Q3 Q3 Carried, ASK, RPK and Load Factor include “Marketing Carriers’ on code- (%) Cumulative 3Months Q3 Q3 Q3
Slide 21: Supplemental Reference: Number of Aircraft
《Supplemental Reference》 Number of Aircraft End of FY2015 End of Q3 FY2016 2016/3/31 2016/12/31 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 22: Supplemental Reference: FY2016 Earnings Forecast (Consolidated Balance Sheet)
《Supplemental Reference》 FY2016 Earnings Forecast (Consolidated Balance Sheet) To improve financial stability, we aim to maintain the equity ratio at around 60% to improve our credit rating. Balance Sheet Fundamental Capital Policy Previous Accumulate retained earnings to （JPY Bn） FY2015 FY2016 Fore
Slide 23: Supplemental Reference: FY2016 Earnings Forecast (Cash Flow)
《Supplemental Reference》 FY2016 Earnings Forecast (Cash Flow) Make relevant capital investments based on strict investment discipline. Secure return on investment and maximize Free Cash Flow Cash Flow FY2015 FY2016 FY2016 （JPY Bn） Previous Forecast Diff. Results New Forecast (announced on Oct. 31,20
Slide 24: 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