Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — H1 FY2021 Earnings Presentation
25 slides from Japan Airlines's earnings presentation, Nov 2, 2021
Slide 1: Financial Results 2nd Quarter Mar/2022 (FY2021)
JAPAN AIRLINES Co., Ltd. Financial Results 2nd Quarter Mar/2022（FY2021） Japan Airlines marked 70th Anniversary of the foundation on October 1, 2021 November 2, 2021 ©Japan Airlines, ALL rights reserved.
Slide 2: Agenda and notes on presentation
SKYTRAX SKYTRAX SKYTRAX COVID-19 Excellence Award 2021 Covid-19 Safety Rating The World’s Best Economy Class 5 Star The Best Economy Class Seat SKYTRAX APEX 5-Star Airline Health Safety Powered by SimpliFlying Audit Diamond 1. PERFORMANCE OVERVIEW FOR 1st Half FY21 2. EARNINGS FORECAST The 8th IR Go
Slide 3: Performance Overview for 1st Half FY21
PERFORMANCE OVERVIEW FOR 1st Half FY21 ✓ Amid the COVID effects, Revenue and EBIT are on the rise toward recovery Revenue EBIT (1)/Profit or Loss (2) （JPY Bn）800.0 （JPY Bn） EBIT Profit or Loss 748.9 ▼458.2 Bn (▼61.2%) 100.0 82.9 54.1 0.0 +95.8 Bn EBIT Margin(3) 400.0 11.1% (+49.2%) ▼ 100.0 290.6 ▼10
Slide 4: Earnings Forecast
1. PERFORMANCE OVERVIEW FOR 1st Half FY21 2. EARNINGS FORECAST 3. RECENT TOPICS 4. DETAILS OF FINANCIAL RESULTS FOR 1st Half FY21 5. REFERENCES ©Japan Airlines, ALL rights reserved. 4
Slide 5: Full-Year Performance Forecast Mar/2022
FULL-YEAR PERFORMANCE FORECAST MAR/2022 ✓ Full-year performance forecast is expected to improve significantly y/y to EBIT ▼198 billion yen and Net loss ▼146 billion yen ✓ The 2nd half is expected to improve from the 1st Half by about EBIT 100 billion yen ✓ Full-year actual fixed cost is expected to
Slide 6: Full-Year Performance Forecast Mar/2022: Passenger Demand
FULL-YEAR PERFORMANCE FORECAST MAR/2022 Passenger Demand Forecast ✓ INT’L PAX. demand is expected to increase gradually with ease of border restrictions ✓ Dom. PAX. demand is expected to increase steadily along with vaccination ✓ Cargo demand is expected to remain strong throughout this fiscal year
Slide 7: An Updated Break-Even Matrix
AN UPDATED BREAK-EVEN MATRIX ✓ EBIT・EBITDA (1) break-even Int’l PAX/Dom. PAX demand matrix (2) was updated as below ✓ The break-even points decreased from the initial plan by the good Cargo business and further fixed cost reduction. ✓ Positive monthly EBITDA by the end of the 3 rd Quarter and positi
Slide 8: Initiatives for Liquidity at Hand
INITIATIVES FOR LIQUIDITY AT HAND Liquidity and cash burn ✓ Sufficient funds of more than 670 billion yen were secured as of the end of SEP/21 ✓ 200 billion yen will be added through hybrid financing from October ✓ Cash-burn will diminish in the 3rd Quarter, and it turns to be positive in the 4th Qu
Slide 9: Recent Topics
1. PERFORMANCE OVERVIEW FOR 1st Half FY21 2. EARNINGS FORECAST 3. RECENT TOPICS 4. DETAILS OF FINANCIAL RESULTS FOR 1st Half FY21 5. REFERENCES ©Japan Airlines, ALL rights reserved. 9
Slide 10: Recent Topics
RECENT TOPICS Initiatives for Safety and Comfort Initiatives for demand stimulation ✓ Sales Promotion in a timely manner for spurring demand recovery JAL is conducting thorough preventive measures The first Japanese airlines with 「JAL FLY SAFE」for safe the triple best rewards for and comfortable fli
Slide 11: JALUX to be a consolidated subsidiary
JALUX to be a consolidated subsidiary ✓ Conducts a joint tender offer with Sojitz Corporation to make JALUX a consolidated subsidiary ✓ Places JALUX as a “core company for non-aviation business” toward leaping business expansion and profit growth Objectives Outline of the tender offer General ◼ Stru
Slide 12: Recent Topics: ESG
RECENT TOPICS ESG Address to Climate Change Improving Accessibility ✓ Contributed to Tokyo 2020 Paralympic by safe SAF(Sustainable Aviation Fuel) and comfortable transportation supports to the its development acceleration and use athletes ✓ Promotes SAF, together with the governments • Smooth airpor
Slide 13: Details of Financial Results for 1st Half FY21
1. PERFORMANCE OVERVIEW FOR 1st Half FY21 2. EARNINGS FORECAST 3. RECENT TOPICS 4. DETAILS OF FINANCIAL RESULTS FOR 1st Half FY21 5. REFERENCES ©Japan Airlines, ALL rights reserved. 13
Slide 14: Consolidated Financial Results
DETAILS OF FINANCIAL RESULTS FOR 1st Half FY21 Consolidated Financial Results 1st Half 2nd Quarter （JPY：Bn ） FY19 FY20 FY20 FY19 FY20 FY21 FY21 Diff. y/y Diff. y/y Diff. y/y Revenue 748.9 194.7 290.6 ▼458.2 ▼61.2% +95.8 +49.2% 157.6 +39.2 +33.1% International PAX 272.9 9.1 29.8 ▼243.1 ▼89.1% +20.6 +
Slide 15: Changes in EBIT (Revenues/Expenses)
DETAILS OF FINANCIAL RESULTS FOR 1st Half FY21 Changes in EBIT (Revenues／Expenses) ASK y/y ： +78.1% + stands for profit increase（ revenue increase, cost decrease ) RPK y/y ： +66.3% ▼ stands for profit decease ( revenue decrease, cost increase ) ＋72.1 Bn （JPY:Bn） 10.6 Bn yen of Personnel cost reducti
Slide 16: International Passenger Operations (Full Service Carrier)
DETAILS OF FINANCIAL RESULTS FOR 1st Half FY21 International Passenger Operations (Full Service Carrier) ✓ Despite border restrictions, transit passenger demand and Tokyo 2020 Olympic and Paralympic athletes and staff demand were captured to increase revenue y/y ✓ Flight schedule was adjusted for tr
Slide 17: Domestic Passenger Operations (Full Service Carrier)
DETAILS OF FINANCIAL RESULTS FOR 1st Half FY21 Domestic Passenger Operations (Full Service Carrier) ✓ Base demand was steadily captured amid the COVID spread nationwide and the repeated declarations of a state of emergency ✓ Swift capacity adjustment and revenue management were conducted in the rapi
Slide 18: Cargo
DETAILS OF FINANCIAL RESULTS FOR 1st Half FY21 Cargo ✓ An increase in volume vs. pre-COVID and high unit prices continued in the limited belly-hold capacity situations ✓ Achieved significant increase of revenue y/y through actively operating cargo flights with own passenger aircrafts and chartered f
Slide 19: Expenses
DETAILS OF FINANCIAL RESULTS FOR 1st Half FY21 Expenses Breakdown of Operating Expenses Actual Fixed Cost(1) Actual Fixed Cost Fixed Cost(except Actual Fixed Cost) ✓ Actual fixed cost for 1st Half FY21 was 230.9 billion yen. Revenue and Capacity Linked Cost 1st Half It is under control toward 475 bi
Slide 20: Summary of Consolidated Statement of Financial Position and Cash Flow
DETAILS OF FINANCIAL RESULTS FOR 1st Half FY21 Summary of Consolidated Statement of Financial Position and Cash Flow ✓ Equity ratio as 39.3%, and the financial foundation was enhanced by the hybrid financing ✓ Repayment within one year including lease payments is just 66.2 billion yen, while BS suff
Slide 21: References
1. PERFORMANCE OVERVIEW FOR 1st Half FY21 2. EARNINGS FORECAST 3. RECENT TOPICS 4. DETAILS OF FINANCIAL RESULTS FOR 1st Half FY21 5. REFERENCES ©Japan Airlines, ALL rights reserved. 21
Slide 22: Operation Performance by Geographic Segment
《Reference》 Operation Performance by Geographic Segment (1) (Full Service Carrier) Passenger Revenue Revenue Passengers Carried 1st Half 2nd Quarter 1st Half 2nd Quarter (‘000) (%) FY21 FY21 FY21 Vs.FY19 Vs. FY20 FY21 Vs.FY20 Component Vs.FY19 Vs. FY20 Component Vs. FY20 America Ratio Ratio 146 ▼81.
Slide 23: Fleet Information
《 Reference 》 Fleet Information End of FY20 (March 31, 2021) End of 1st Half FY21 (September 30, 2021) Owned Leased Total 1 Total 2 Owned Leased Total 1 Total 2 Diff. retired aircraft retired aircraft Total2 of Mar/21 - excluded excluded and Sep/21 Airbus A350-900 4 4 8 8 8 4 12 12 +4 Boeing 777-300
Slide 24: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations, Japan Airlines ©Japan Airlines, ALL rights reserved. 24
Slide 25: 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