Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — Q2 FY2015 Earnings Presentation

24 slides from Japan Airlines's earnings presentation, Oct 30, 2015

  1. Slide 1: Financial Results 2nd Quarter MAR/2016 (FY2015)

    Financial Results 2nd Quarter MAR/2016 (FY2015) October 30th, 2015

  2. Slide 2: Contents

    Contents 8 ui JAPAN AIRLINES OVERVIEW OF 187 HALF MAR/16 RESULTS REVISED CONSOLIDATED FINANCIAL FORECAST FOR MAR/16 PROGRESS OF MEDIUM TERM MANAGEMENT PLAN DETAILS OF 18™T HALF MAR/16 FINANCIAL RESULTS SUPPLEMENTAL REFERENCES

  3. Slide 3: Overview of 1st Half FY MAR/16 Results

    Overview of 1st Half FY MAR/16 Results Operating Revenue Operating Profit （JPY Bn） （JPY Bn） 130 20% 700 687.9 119.9 683.7 +27.1Bn +4.1Bn 110 (＋29.2%) 18% (＋0.6%) 92.8 17.4% 90 16% 650 Operating Profit 70 14% Margin 600 13.6% 50 12% 1st Half Mar/2015 1st Half Mar/2016 1st Half Mar/2015 1st Half Mar/2

  4. Slide 4: Revised Consolidated Financial Forecast for FY Mar/16

    Revised Consolidated Financial Forecast for FY Mar/16 Upward Revision in Operating Profit Forecast  The revision was made based on the results and Fuel/FX Operating Profit forecasts. New (JPY Bn) Previous Forecast Forecast Difference （JPY Bn） 210 204.0 Operating Profit 172.0 204.0 +32.0 (*) Net Inc

  5. Slide 5: Progress of Medium Term Management Plan

    Progress of Medium Term Management Plan International Domestic Product and Service Enhancements  JAL SKY NEXT has been installed in approximately 60% of selected 【SKYTRAX World Airline Awards】 domestic fleet.  “Best Business Class Airline Seats” in 2013  The installment will be completed in all 7

  6. Slide 6: Details of 1st Half FY Mar/16 Financial Results

    DETAILS OF 1§' HALF FY MAR/16 FINANCIAL RESULTS

  7. Slide 7: Consolidated Financial Results

    Consolidated Financial Results Consolidated Financial Results 1st Half Mar/16 1st H FY 1st H FY 2nd Quarter （JPY Bn） y/y ratio y/y ratio  Operating revenue was Mar/15 Mar/16 (Jul-Sep)(5) 687.9 billion yen, up 0.6% Revenue 683.7 687.9 +0.6% 375.8 ▲0.2% Air Transportation Segment 609.3 620.2 +1.8% 33

  8. Slide 8: Changes in Operating Profit

    Changes in Operating Profit 1st Half FY Mar/16 （JPY Bn） +JPY27.1Bn Impact From Currency (+29.2%) Market ▲JPY15.6Bn ASK y/y： +0.1% Revenue ＋JPY11.0Bn RPK y/y： +3.9% Cost ▲JPY26.6Bn Fuel Maintenance Aircraft Fuel ▲JPY16.8Bn Depreciation Personnel Ex. Fuel ▲JPY9.8Bn Sales of travel Expenses of ▲3.7 Oth

  9. Slide 9: International Passenger Operations (Operating Results)

    International Passenger Operations(Operating Results) International Passenger 1st H FY 1st H 2ndQuarter  Passenger revenue was 235.6 y/y ratio y/y ratio Mar/15 FY Mar/16 (Jul-Sep) (1) billion yen, up 0.7% year-on-year. Passenger Revenue （JPY Bn） 233.9 235.6 +0.7% 126.1 ▲0.4%  ASK was up 1.0% and R

  10. Slide 10: International Passenger Operations (Change in Revenue)

    International Passenger Operations(Change in Revenue) 1St Half FY Mar/16  Revenue per passenger declined due （JPY Bn） +JPY1.7Bn to a decrease in fuel surcharge. (+0.7%)  Expansion of JAL SKY SUITE 235.6 777/767/787 and the weak yen 233.9 contributed to an increase in +9.8 revenue per passenger. ▲8

  11. Slide 11: Domestic Passenger Operations (Operating Results)

    Domestic Passenger Operations(Operating Results) Domestic Passenger 1st H FY 1st H FY 2ndQuarter  Passenger revenue was 256.8 y/y ratio y/y ratio Mar/15 Mar/16 (Jul-Sep) (1) billion yen, up 3.5% year-on- Passenger Revenue year. （JPY Bn） 248.1 256.8 +3.5% 146.9 +3.1% ASK  ASK was ▲1.2% and RPK （MN

  12. Slide 12: Domestic Passenger Operations (Change in Revenue)

    Domestic Passenger Operations(Change in Revenue) 1st Half FY Mar/16  Changes in customer mix through revenue （JPY Bn） management +JPY8.6Bn ・Well-reputed JAL SKY NEXT (+3.5%) ・Increase of individual passengers 256.8 +2.2  Increase of high-yield passengers during high season (consecutive holidays in

  13. Slide 13: Major Operating Expense Items

    Major Operating Expense Items Operating Expenses 1st H FY 1st H FY 2nd  Increase in some cost items （JPY Bn） Diff. y/y ratio Quarter Diff. Mar/15 Mar/16 (1) (Jul-Sep) due to the weak yen and service enhancements. We will Fuel 151.4 122.5 ▲28.9 ▲19.1% 62.6 ▲15.2 maintain cost reduction Landing and n

  14. Slide 14: Impact of Fuel and FX Markets

    Impact of Fuel and FX Markets Transition of Fuel Cost by Factor Hedging Ratio of Fuel Costs* (JPY Bn) (As of End of 1st Half FY Mar/16) 1st H 160 *Approximately FY2014 100% 90% 140 Fuel FX 1st H FY2015 80% 120 ▲59.2 151.4 +13.5 60% Volume 100 +16.8 increase/ 122.5 40% Hedging, etc. 40% Market FX 80

  15. Slide 15: Major Balance Sheet Items

    Major Balance Sheet Items Consolidated Balance Sheet Summary as of End of 1st Half FY2015 End of FY2014 End of 1H FY2015  The balance of interest- (JPY Bn) difference 2015/3/31 2015/9/30 bearing debt decreased by 17.2 billion yen to 83.3 billion yen as Total Assets 1,473.3 1,511.2 +37.8 a result of

  16. Slide 16: Major Cash Flow Items

    Major Cash Flow Items （JPY Bn） 1st H FY Mar/15 1st H FY Mar/16 Difference Net income before income taxes and 91.8 123.6 +31.7 minority interests Depreciation and Amortization 42.6 43.4 +0.7 Other 7.2 10.6 +3.4 Cash Flow from Operating Activities 141.7 177.7 +35.9 Capital Expenditure(1) ▲77.2 ▲97.3 ▲

  17. Slide 17: FY2015 Earnings Forecast (Consolidated)

    FY2015 Earnings Forecast（Consolidated） Previous 予想 New Previous FY Mar/15 FY Mar/16 Forecast Forecast for Forecast (JPY Bn） 増減額 Result Forecast Announced on FY Mar/16 Announced on April 30, 2015 April 30, 2015 ASK* Int’l +1.5% +3.1% Revenue 1,344.7 1,347.0 1,328.0 +19.0 Doms. ▲1.1% +0.7% Int’l Passe

  18. Slide 18: FY Mar/16 Earnings Forecast (Consolidated BS/Cash Flow)

    FY Mar/16 Earnings Forecast (Consolidated BS/Cash Flow) Consolidated Balance Sheet （JPY Bn） FY Mar/15 Result FY Mar/16 New Forecast Previous Forecast Difference Announced on April 30, 2015 Total Assets 1,473.3 1,598.0 1,581.0 +17.0 Balance of Interest-bearing Debt 100.5 86.0 86.0 - (4) (4) Sharehold

  19. Slide 19: Submission of Corporate Governance Report

    Submission of Corporate Governance Report Corporate Governance Report We submitted our Corporate Governance Report to TSE on October 30, 2015 We will comply with each principle in the Corporate Governance Codes. In the Principle 5-2, “Establishing and Disclosing Business Strategy and Business Plan

  20. Slide 20: Fly into tomorrow.

    Fly into tomorrow. Contact: Finance, Japan Airlines +81-3-5460-3068

  21. Slide 21: Supplemental Reference: Revenue of International Routes by Geographic Segment

    《Supplemental Reference》 Revenue of International Routes by Geographic Segment Passenger Revenue (% of the whole int’l revenue) Passengers FY Mar/15 FY Mar/16 FY Mar/16 FY Mar/15 FY Mar/16 FY Mar/16 (%) Difference Difference (‘000 passengers) y/y y/y 1st Half 1st Half 2nd Quarter 1st Half 1st Half 2

  22. Slide 22: Number of Aircraft in Service as of September 2015

    《Supplemental Reference》 Number of Aircraft in Service as of September 2015 End of Mar/15 End of 1st Half FY Mar/16 2015/3/31 2015/9/30 Difference Owned Leased Total Owned Leased Total Boeing 777-200 13 0 13 12 0 12 ▲1 Large Size Boeing 777-200ER 11 0 11 11 0 11 - Boeing 777-300 7 0 7 5 0 5 ▲2 Boein

  23. Slide 23: Supplemental Reference: FY2015 Earnings Forecast (Air Transportation Segment)

    《Supplemental Reference》 FY2015 Earnings Forecast (Air transportation Segment) International Passenger Domestic Passenger y/y% 1H 2H FY Mar/16 1H 2H FY Mar/16 (Except Load Factor) （Result） （Forecast） （Forecast） （Result） （Forecast） （Forecast） ASK +1.0% +2.0% +1.5% ▲1.2% ▲0.9% ▲1.1% RPK +6.2% +7.2% +6

  24. Slide 24: Forward-looking statements notice

    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

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