Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — Q3 FY2019 Earnings Presentation

24 slides from Japan Airlines's earnings presentation, Jan 31, 2020

  1. Slide 1: Financial Results 3rd Quarter Mar/2020 (FY2019)

    JAPAN AIRLINES Co., Ltd. Financial Results 3 rd Quarter Mar/2020（FY2019） January 31, 2020 ©Japan Airlines, ALL rights reserved.

  2. Slide 2: Today's Topics

    Today’s Topics OVERVIEW OF FINANCIAL RESULTS FOR P.3 3rd Quarter MAR/20 REVISED CONSOLIDATED FINANCIAL P.5 FORECAST FOR MAR/20 DETAILS OF FINANCIAL RESULTS FOR P.7 3rd Quarter MAR/20 REFERENCES P.18 Health and Productivity SKYTRAX FTE Management Brand The World’s Best Economy Class Accessibility Lea

  3. Slide 3: Overview of Financial Results for 3rd Quarter Mar/20

    Overview of Financial Results for 3 rd Quarter Mar/20  Domestic Passenger was robust but INT’L Passenger & Cargo was weak  Operating Profit decreased year-on-year Operating Revenue Operating profit・Net profit (1)・Operating profit margin Figures in ( ) exclude （JPY Bn） （JPY Bn） the depreciation met

  4. Slide 4: FY2020 Tokyo Metropolitan Airports Routes

    FY2020 Tokyo Metropolitan Airports Routes Haneda  INT’L Network Expansion from Mar. 29 with the Additional 12 slots Route Effective​ 1 Haneda＝Los Angeles New Service 2 Haneda＝Chicago New Service (Transferred from Narita) Continental United 3 States Routes Haneda＝Dallas New Service (Transferred from

  5. Slide 5: FY2019 Earnings Forecast

    FY2019 Earnings Forecast  Operating Revenue Forecast decreases again by 30 billion yen due to sluggish INT’L PAX/CGO  Despite the steady cost reduction, Operating Profit Forecast decreases by 30 billion yen and so does Net Profit Forecast by 21 billion yen but no change in Dividend Forecast Revenu

  6. Slide 6: Intentionally Left Blank

    INTENTIONALLY LEFT BLANK ©Japan Airlines, ALL rights reserved. 6

  7. Slide 7: Consolidated Financial Results

    Consolidated Financial Results 3Q 3Q 3rd Quarter （JPY Bn） MAR/19 MAR/20 Diff. y/y ratio (Oct-Dec)(6) Diff. y/y ratio Operating Revenue 1,131.0 1,130.8 ▲0.1 ▲0.0% 371.0 ▲9.8 ▲2.6％ International Passenger 403.4 392.1 ▲11.3 ▲2.8% 126.1 ▲8.1 ▲6.1％ Domestic Passenger 404.7 415.4 +10.7 +2.7% 138.5 +2.0 +1

  8. Slide 8: Changes in Operating Profit (Revenues/Expenses)

    Changes in Operating Profit（ Revenues/Expenses ） 3 rd Quarter Mar/20 （JPY Bn） ＋ stands for profit increase (revenue increase, cost decrease) ▲ stands for profit decrease (revenue decrease, cost increase) ▲25.3 Bn ASK y/y： ＋1.5% (▲17.4%) RPK y/y： ＋1.4％ ▲18.5 Bn (▲12.7%) Domestic Other Fuel Maintenanc

  9. Slide 9: Changes in Operating Profit (Market/Others)

    Changes in Operating Profit（ Market/Others ） 3 rd Quarter Mar/20 (JPY Bn） ＋ stands for profit increase (revenue increase, cost decrease) ▲25.3 Bn ▲ stands for profit decrease (revenue decrease, cost increase) Impact From Currency Market +1.2 Bn (▲17.4%) Revenues ▲3.8 Bn Fuel Volume +0.8 Expenses +5.

  10. Slide 10: International Passenger Operations

    International Passenger Operations International Passenger Change in Revenue （JPY Bn） 3Q 3Q 3rd Quarter MAR/19 MAR/20 y/y (Oct-Dec)(4) y/y ▲11.3 Bn (▲2.8%) Passenger Revenue (JPY Bn) 403.4 392.1 ▲2.8% 126.1 ▲6.1% The Passenger Service System Effects Included Passengers 403.4 (’000) 6,872 6,769 ▲1.5%

  11. Slide 11: Domestic Passenger Operations

    Domestic Passenger Operations Domestic Passenger Change in Revenue （JPY Bn） 3Q 3Q 3rd Quarter y/y (Oct-Dec)(4) y/y MAR/19 MAR/20 ＋10.7 Bn Passenger Revenue 404.7 415.4 ＋2.7% 138.5 ＋1.5% (＋2.7%) (JPY Bn) ・ Demand Rise during Passengers (’000) 26,437 27,124 +2.6% 9,117 +1.0% the Long Holidays(＋) ・ Inc

  12. Slide 12: Major Operating Expense Items

    Major Operating Expense Items Operating Expenses 3Q 3Q 3rd Quarter （JPY Bn） Diff. y/y ratio Diff. y/y ratio MAR/19 MAR/20 (Oct-Dec)(4) Fuel 191.7 189.6 ▲2.0 ▲1.1% 61.9 ▲4.4 ▲6.7％ Landing and navigation fees 64.9 65.2 +0.3 +0.5% 21.7 +0.0 +0.3％ Maintenance 55.0 59.6 +4.5 +8.3% 19.6 +1.3 +7.2％ Sales c

  13. Slide 13: Major Balance Sheet Items and Cash Flow Items

    Major Balance Sheet Items and Cash Flow Items Consolidated Balance Sheet End of End of 3rd （JPY Bn） Quarter Mar/20 Diff. Remarks Mar/19 Total Assets 2,030.3 1,941.7 ▲88.5 Cash and Deposits 82.7 Bn. yen injection to Pension Fund in Sep. and （incl. Certificate of Deposits etc） 522.0 326.4 ▲195.6 tempo

  14. Slide 14: Revenue of International Routes by Geographic Segment

    《 Reference 》 Revenue of International Routes by Geographic Segment Passenger Revenue 3Q 3Q Component Ratio (%) Cumulative 3Months y/y y/y 3Q Mar/19 3Q Mar/20 3Q 3Months America +6.6% +0.3% 26% 28% 28% Europe ▲4.9% ▲3.0% 17% 17% 15% Asia/Oceania ▲4.2% ▲6.8% 32% 31% 34% China ▲7.0% ▲17.4% 11% 11% 10%

  15. Slide 15: Number of Aircraft

    《 Reference 》 Number of Aircraft End of Mar/19 End of 3rd Quarter/20 (March 31, 2019) (December 31, 2019) Diff. Owned Leased Total Owned Leased Total Airbus A350-900 0 0 0 5 0 5 +5 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

  16. Slide 16: FY2019 Earnings Forecast

    《 Reference 》 FY2019 Earnings Forecast Consolidated Balance Sheet End of End of FY2018 FY2019 （JPY Bn） Diff. Previous New Results (1) Forecast Forecast Total Assets 2,030.3 2,010.0 1,962.0 ▲48.0 Balance of Interest-bearing 142.3 171.0 171.0 - debts Shareholders’ Equity 1,165.1 1,174.0 1,166.0 ▲8.0 (

  17. Slide 17: Intentionally Left Blank

    INTENTIONALLY LEFT BLANK ©Japan Airlines, ALL rights reserved. 17

  18. Slide 18: ESG Management towards achievement of SDGs

    《Reference》 ESG Management towards achievement of SDGs ※Originally disclosed on February 25,2019 In this Medium Term Management Plan, we look to identify priority issues from the viewpoint of ESG management. And strive to solve social issues through to achieve SDGs *1 in 2030. 2030 Fields Priority I

  19. Slide 19: ESG

    《Reference》 ESG  Contribute to achieve SDGs, through our business activities, toward the realization of a sustainable society and corporate value increase  Established The JAL Group Code of Conduct “Commitment to Society” Environmental Social Governance ・High transparency and strict ・Low-Carbon In

  20. Slide 20: Financial Strategy and Capital policy①

    《Reference》 Financial Strategy and Capital policy① ※Originally disclosed on February 25,2019 Capital investments will be made within cash flow from operating activities. Approximately 2/3 of the total investment will be actively used for growth investment to increase corporate value. Aircraft invest

  21. Slide 21: Financial Strategy and Capital policy②

    《Reference》 Financial Strategy and Capital policy② ※Originally disclosed on February 25,2019 We will strategically allocate capital to increase corporate value, while maintaining a firm financial structure with high capital efficiency. Improve asset efficiency Further increase Capital allocation and

  22. Slide 22: Financial Strategy and Capital policy③

    《Reference》 Financial Strategy and Capital policy③ ※Originally disclosed on February 25,2019 （Partial updated ） Stable financial structure with high capital efficiency Enhancement of shareholder return and capital allocation for corporate value increases Financial structure Capital efficiency Shareh

  23. Slide 23: Fly into tomorrow.

    Fly into tomorrow. Finance & Investor Relations, Japan Airlines ©Japan ©Japan Airlines, ALL Airlines, ALL rights rightsreserved. reserved.

  24. Slide 24: 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

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