Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q3 FY3/15 Earnings Presentation
37 slides from Japan Airlines's earnings presentation, Jan 30, 2015
Slide 1: Financial Results 3rd Quarter Mar/2015 (FY2014)
JAPAN AIRLINES Financial Results 3rd Quarter Mar / 2015 (FY2014) January 30, 2015 Norikazu Saito, Director, Senior Managing Executive Officer
Slide 2: Contents
Contents P.2 P.3 P.5 * HAC, Hokkaido Air System has been incorporated from the third quarter 1
Slide 3: Overview of 3rd Quarter FY3/15 Financial Results
Overview of 3rd Quarter FY3/15 Financial Results Operating Revenue Operating Profit Operating Profit （JPY Bn） Margin （JPY Bn） 1,050 19% 1,022.3 140 ＋0.7 Bn 1,020 137.4 （＋0.5%） 138.2 989.9 （＋32.4 Bn） 990 ＋3.3% 16% 960 135 13% 930 13.9% 13.5% 900 3Q FY3/14 3Q FY3/15 130 10% 3Q FY3/14 3Q FY3/15 Fuel /
Slide 4: Overview commentary: operating revenue and profit
During the reporting period, our operating revenue increased by 3.3% year-on- year to one trillion and twenty two point three (1,022.3) billion yen. In addition to an increase in international passenger revenue, domestic passenger revenue in the third quarter also increased due to an increase in
Slide 5: Revised Consolidated Financial Forecast for FY3/15
Revised Consolidated Financial Forecast for FY3/15 Upward Revision of Operating Profit Forecast Upward Revision of Net Income Revised our Forecast based on the result of 3rd quarter. Net income to be 139.0 Billion with 4.0 billion increase Operating Profit 167.0 Billion, Operating Profit Margi
Slide 6: Revised forecast commentary
In this page, it describes our consolidated financial forecast for the full fiscal year. Taking into account the financial results for the third quarter, we have revised our operating profit forecast upward by 9 billion yen to 167 billion yen from the last forecast of 158 billion yen. We estimat
Slide 7: Dividend Forecast for FY3/15
Dividend Forecast for FY3/15 Dividend Forecast Enhancement for Shareholders return Dividend per share for FY3/15 Appx. 20% of Consolidated Net Income for the fiscal 97.00JPY year excluding Income （Forecast） Tax-Deferred Forecast for FY3/15(E) Dividened Calculation FY3/14(A) Announcement on New Forec
Slide 8: Dividend forecast commentary
In this page, it describes our dividends forecast. Taking into account our rating and steady progress in improving our financial foundation, we will revise our dividend payout ratio from this fiscal year to 25% of full-year consolidated net income after deducting corporate tax adjustment, etc. i
Slide 9: Consolidated Financial Results
Consolidated Financial Results Consolidated Financial Results 3rd Quarter FY3/15 (JPY Bn) 3Q FY3/14 3Q FY3/15 y/y 3rd Quarter y/y Revenue: (Oct-Dec) (1) 1,022.3Bn JPY, Revenue 989.9 1,022.3 +3.3% 338.6 +2.4% y/y +3.3% Air Transportation Segment 883.6 909.9 +3.0% 300.6 +2.1% Operating Expense 852.4
Slide 10: Consolidated results commentary
During the reporting period, our operating revenue increased by 3.3% year-on- year to one trillion and twenty two point three (1,022.3) billion yen due to an increase in international passenger revenues. Operating expense increased by 3.7% year-on-year to 884.1billion yen, mainly due to weak Jap
Slide 11: Changes in Operating Profit
Changes in Operating Profit 3Q FY3/15 （Unit:JPY Bn） +0.7 Bn (+0.5%) Impact From Currency Market ▲11.0Bn ASK y/y： +0.2% Revenue ＋6.1Bn RPK y/y： +1.6% Cost ▲17.1Bn Sales of Expenses of Fuel ▲11.8Bn travel travel Agency, Agency, Ex. Fuel ▲5.3Bn Incidental Incidental Other Business(※) Business(※) Cargo
Slide 12: Operating profit changes commentary
This page shows the changes in operating profit. As for revenues, international passengers reported an increase in revenue of 14.6 billion yen and 1.8 billion yen decrease in domestic passengers, which was 32.4 billion yen increase with other revenues. As for expenses, it increased by 31.7 bil
Slide 13: International Passenger Operations (Operating Results)
International Passenger Operations (Operating Results) International Passenger 3rd Quarter International Passenger 3Q FY3/14 3Q FY3/15 y/y y/y (Jul-Sep) (1) Revenue: Passenger JPY 345.9 Bn Revenue 331.3 345.9 +4.4% 112.0 +2.7% (JPY Bn) y/y +4.4% ASK (MN seat km) 34,842 35,946 +3.2% 11,957 +1.7%
Slide 14: International passenger operations commentary
For International Passenger Operations, ASK increased by 3.2% and RPK increased by 2.1%. The load factor was 75.4% JAL SKY SUITE introduction and the unit revenue increase of the inbound visitors on weak yen have risen yield by 2.3% and unit revenue by 4.0% and the revenue was 345.9 billion yen
Slide 15: International Passenger Operations (Change in Revenue)
International Passenger Operations (Change in Revenue) 3QFY3/2015 3Q FY3/15 （Bn JPY） +14.6 Bn(+4.4%) Expansion of SKY SUITE 777/767/787 345.9 Improved Load Factor and Unit +2.1 price +12.5 Strong Demand for inbound Strong Demand for inbound 331.3 passengers passengers - Weak Yen - Passenger Mi
Slide 16: International passenger revenue commentary
In this page, it describes the change in international passenger revenue from the previous year in detail. In the third quarter, unit price was improved by expanding JAL SKY SUITE which greatly evolved comfortability and function. Also, inbound passengers increased about 10% over the previous
Slide 17: Domestic Passenger Operations (Operating Results)
Domestic Passenger Operations (Operating Results) Domestic Passenger 3rd Quarter 3Q FY3/14 3Q FY3/15(1) y/y (Oct-Dec) y/y Domestic Passenger (1)(2) Revenue: Passenger 373.0 Bn JPY, y/y ▲0.5% Revenue 374.9 373.0 ▲0.5% 124.8 +1.3% (JPY Bn) As ASK was ▲3.4% year ASK (MN seat km) 28,413 27,458 ▲3.4%
Slide 18: Domestic passenger operations commentary
In this page, it describes the situation of our domestic passenger operations. ASK fell by 3.4% year-on year, but 0.8% increase for RPK, which brought 2.8 point load factor increase to 66.4 % . On the other hand, the yield and unit price have turned plus in the third quarter as shown in the ri
Slide 19: Domestic Passenger Operations (Change in Revenue)
Domestic Passenger Operations (Change in Revenue) 3Q FY3/2015 （JPY Bn） Change in customer mix ▲1.8Bn ・Increase of the percentage of passengers (▲0.5%) using promotional fares such as “Tokubin 374.9 Discount 21” 373.0 ▲5.3 Implementation of various +3.5 measures ・ Launching of JAL SKY NEXT ・Exten
Slide 20: Domestic passenger revenue commentary
During the reporting period, the unit price fell because of the proportional growth of the passengers on promotional fares as “Tokubin Discount 21” . On the other hand, the expansion of JAL SKY NEXT ,our new seat and products for domestic network, gaining good feedback has bought revenue increas
Slide 21: Major Operating Expense Items
Major Operating Expense Items Operating Expenses 3Q 3rd Quarter (JPY Bn) 3Q FY3/14 FY3/15(1) difference % y/y (Oct-Dec) 1) ( difference Fuel costs increased by 10.7 billion yen. Fuel 212.3 223.0 +10.7 +5.1% 71.6 +0.4 Aircraft Lease is reduced Landing fees 60.8 61.3 +0.5 +0.8% 20.4 +0.3 by 4.1 Bn
Slide 22: Operating expense commentary
Fuel cost increased by 10.7billion yen, However the recent fuel market decline has made the cost into the level of the previous year. As for Aircraft depreciation costs, it increased by 3.7 billion yen by introducing new aircraft and purchasing the leased aircraft, incidentally reducing 4.1 bill
Slide 23: Impact from Fuel and FX Markets
Impact from Fuel and FX Markets Hedging Ratio for Fuel Costs Transition of Fuel Cost by its factors (As of End of 3Q FY3/15) (JPY Bn) 2,400 240 100% Approx. 240 約85% 85% Approx. FUEL FX 80% 約75% 75% Volume 2,300 230 3Q FX Market increase / FY3/15 Hedging etc 60% Approx. 2,200 220 ▲10.4 +9.4 40% 約40%
Slide 24: Fuel and FX commentary
The breakdown of the fuel cost increase of 10.7 billion yen was; plus 11.8 billion of weaker yen, minus 10.4 billion yen by the decline of fuel market and plus 9.4 billion in Payload increase and hedge gains and losses. As for the hedging of fuel cost, is shown in the table in the upper right co
Slide 25: Major Balance Sheet Items
Major Balance Sheet Items Consolidated Balance Sheet Summary as of End of 3rd Quarter FY3/15 End of 3rd The balance of interest- End of FY3/14 (JPY Bn) Qurater FY3/15 difference bearing debt is reduced 2014/3/31 2014/12/31 by 29.2 Bn JPY to 104.9 Bn JPY after repayment Total Assets 1,340.1 1,437.0
Slide 26: Balance sheet commentary
In this page, it describes the balance sheet . Outstanding interest-bearing debts decreased by 29.2 billion yen to 104.9 billion yen as we repaid lease obligation and long-term loans. Equity ratio was 51.5 percent which was same level as in the end of last fiscal year. 13-a
Slide 27: FY3/15 Earnings Forecast (Consolidated)
FY3/15 Earnings Forecast (Consolidated) FY3/15 FY3/15 FY3/15 FY3/14 FY3/15 Prev. Forecast Prev. Forecast (JPY Bn) Results New difference New As of As of Forecast Forecast 31,Oct,2014 31,Oct,2014 Revenue 1,309.3 1,342.0 1,340.0 +2.0 ASK Int’l 103.4 103.7 Operating Doms 98.0 98.4 Expense 1,142.5 1,175
Slide 28: Earnings forecast commentary
In this page, it describes our consolidated financial forecast for the full fiscal year. As previously mentioned, we have revised our operating profit forecast on October 31 upward. As for International passenger revenue forecast, we decreased it by 2 billion yen from the previous forecast ref
Slide 29: Fly into tomorrow.
Fly into tomorrow. Contact: Finance, Japan Airlines +81-3-5460-3068
Slide 30: Supplemental Reference: Major Cash Flow Items
《Supplemental Reference》 Major Cash Flow Items (JPY Bn) 3Q FY3/14 3Q FY3/15 Difference Net income before income taxes and minority interests 136.1 136.8 +0.7 Depreciation 61.9 64.7 +2.8 Other ▲14.4 ▲17.1 ▲2.7 Cash Flow from Operating Activities 183.6 184.4 +0.7 Capital Expenditure (1) ▲97.1 ▲164.4 ▲
Slide 31: Supplemental Reference: Revenue of International Routes by Geographical Segment
《Supplemental Reference》 Revenue of International Routes by Geographical segment Passenger Revenue (% of the whole int’l revenue) Passengers 3Q FY3/15 3Q FY3/15 (%) 3Q FY3/14 3Q FY3/15 Y/Y Y/Y (‘000) 3Q FY3/14 3Q FY3/15 Y/Y Y/Y (Oct-Dec) (Oct-Dec) Trans Pacific 34.0% 36.5% +2.5pt 36.0% +2.5pt Trans
Slide 32: Supplemental Reference: Number of Aircraft in Service
《Supplemental Reference》 Number of Aircraft in Service End of Mar/2014 End of Dec/2015 Changes 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 46 0 46 44 0 44
Slide 33: Supplemental Reference: FY3/15 Earnings Forecast (Balance Sheets / Cash Flow)
《Supplemental Reference》 FY3/15 Earnings Forecast (Consolidated Balance Sheets / Cash Flow) Consolidated Balance Sheet FY3/15 Prv. Forecast (JPY Bn) End of FY3/14 Result FY3/15 New Forecast Difference (Oct 31,2014) Total Assets 1,340.1 1,461.0 1,461.0 +0 Interest-bearing Debt 134.2 99.0 101.0 ▲2.0 S
Slide 34: Supplemental Reference: FY3/15 Earnings Forecast (Air Transportation Segment)
《Supplemental Reference》 FY3/15 Earnings Forecast（ Air transportation Segment ） International Domestic y/y (%) 1st to 3rd 1st to 3rd 4th Quarter FY3/15 4th Quarter FY3/15 (Exclude Load Quarter Quarter (Forecast) (Forecast) (Forecast) (Forecast) Factor) (Result) (Result) ASK +3.2% +4.2% +3.4% ▲3.4% +
Slide 35: Supplemental Reference: Flight Frequency and Fleet Plans for FY3/16
《Supplemental Reference》 JAL Group Announces Flight Frequency and Fleet Plans for FY3/16 Release : Jan 21, 2015 Newly established / Flight Frequency Increase (1) March 20,2015 to March 28,2015 Rou te Effe c tive Pe riod Re vise d poin ts Aircraft Deparutre and Arrival Time JL060 Kansai 15:20- Los An
Slide 36: Supplemental Reference: Flight Frequency and Fleet Plans for FY3/16
《Supplemental Reference》 Flight Frequency and Fleet Plans for FY3/16 Domestic Network Continuation of Seas on Operations Route Details Effec tiv e Period Itami = Matsumoto 1 daily flight August 1 ~ August 31 Itami = Memanbetsu 1 daily flight July 18 ~ July 20、July 25 ~ August 31 Sapporo (New Chitose
Slide 37: This contents contains descriptions of the future expectations, outlooks, objectives and plans etc. of
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 created by the