Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — Investor Presentation (May 2022)

61 slides from Japan Airlines's investor presentation, May 6, 2022

Slide 1: JAL Group Medium Term Management Plan FY2021-2025 Rolling Plan 2022
JAL Group Medium Term Management Plan FY2021-2025 Rolling Plan 2022 May 6, 2022
Slide 3: Table of Contents
MTP2021-2025 Rolling Plan Table of Contents 2022 Chapter 1: Outline of Medium Term Management Plan- Chapter 3: Details of Strategy Rolling Plan 2022 1 -1: Timelines of Rolling Plan 2022 3 -1: Accelerate Initiatives in Each Business Area 1 -2: Outline of Management Strategy - Initiatives in Each Busi
Slide 4: Presentation script: introduction and chapter overview
MTP2021-2025 Rolling Plan 2022 ● Thank you for joining today's conference call. I’m Kikuyama, CFO of Japan Airlines. First, I would like present our Rolling Plan 2022 for the Medium-Term Management Plan FY2021- FY2025. ● This presentation material consists of three chapters: the outline of this roll
Slide 5: On Formulating the Medium Term Management Plan Rolling Plan 2022
Since our announcement, last May, of our FY2021 to FY2025 JAL Group Medium Term Management Plan, the uncertainty in the business environment has increased, given the prolonged impact of COVID-19 and the situation in Europe and its ramifications throughout the world. Under these circumstances, the JA
Slide 7: JAL Vision 2030
JAL Vision 2030 Corporate Policy JAL Vision Ideal image of the JAL Group in 2030 Medium-term Management Plan The JAL Group will focus on the key themes of “Safety and Peace of Mind” and “Sustainability” as the engines of growth in a time of upheaval with drastic changes in values Safety and Peace of
Slide 8: Script: JAL Vision 2030
MTP2021-2025 Rolling Plan 2022 ● This is JAL Vision, our goal for 2030, which I explained last year. ● As our environment and values of our society are changing drastically, we would like to move forward with "Safety and Peace of Mind" and "Sustainability" as the engines for our future growth. ● We
Slide 9: Rolling Plan: Outline of Medium Term Management Plan
Rolling Plan 1. Outline of Medium Term Management Plan- Rolling Plan 2022 2022 2. Three Pillars of Management Strategy 3. Details of Strategy ©Japan Airlines, ALL rights reserved. 5
Slide 11: Timelines of Rolling Plan 2022
MTP2021-2025 Corporate Policy Timelines of Rolling Plan 2022 Rolling Plan 1-1 2022 JAL Vision JAL Vision 2030 and 4-year rolling plan to realize the Medium Term Medium Term Management Plan Management Plan Current situation Medium Term Management Plan- Future Early recovery from Rolling Plan 2022 Rea
Slide 12: Script: timeline of Rolling Plan
MTP2021-2025 Rolling Plan 2022 ● This rolling plan is a four-year plan from this year to Fiscal year 2025. The medium-term management plan released last year has been updated and refined in accordance with the changes in our business environment. ● As for the fiscal years 2023 and 2025, we will not
Slide 13: Environmental Changes and Three Pillars of Management Strategy
MTP2021-2025 Environmental Changes and Three Pillars of Management Strategy Rolling Plan 1-2 Adapt to changes in the business environment and accelerate management strategy 2022 execution with ESG strategy at the core Changes in the business environment Airline Industry Market Society and JAL Prolon
Slide 14: Script: environmental changes
MTP2021-2025 Rolling Plan 2022 ● As a change in our business environment from last year, it is recognized that the promotion of ESG-based management leads to an increase in corporate value as the awareness among companies and investors are expanding. ● Based on those changes in our society, the JAL
Slide 15: Safety and Security Initiatives
MTP2021-2025 Safety and Security Initiatives Rolling Plan 1-3 Accelerate safety and security initiatives to realize JAL Vision 2030 2022 < Environmental changes surrounding safety and security > Internal Roll out our management strategy External Global risks and technology environmental ◼ Drive ESG-
Slide 16: Script: safety and security initiatives
MTP2021-2025 Rolling Plan 2022 ● This page explains our efforts for Safety and Security Initiatives, which is the foundation of the JAL Group. ● We will promote initiatives based on the human resources and the culture that have been cultivated by inheriting and continuously instilling the Safety and
Slide 17: Three Pillars: ESG, Business, Finance Strategy
1. Outline of Medium Term Management Plan- Rolling Plan 2022 2. Three Pillars of Management Strategy Rolling Plan ESG Strategy 2030 2022 Business Strategy 2025 Finance Strategy 2025 3. Details of Strategy ©Japan Airlines, ALL rights reserved. 9
Slide 19: ESG Strategy of the JAL Group
MTP2021-2025 ESG ESG Strategy of the JAL Group Rolling Plan 2-1 Put ESG strategy at the core of our management strategy to drive growth towards 2030 2022 ■Safety and Peace of Mind ... Build a society where everyone can live safely, securely and with peace of mind ■Sustainability ... Build a better f
Slide 20: Script: ESG strategy
MTP2021-2025 Rolling Plan 2022 ● From this page, I will present the ESG strategy that is put at the core of our management strategy. ● This page shows the relationship between the theme of JAL Group's ESG strategy and each business activity. ● To realize JAL Vision, JAL Group places the ESG strategy
Slide 21: Story of Increasing Corporate Value
MTP2021-2025 ESG Story of Increasing Corporate Value Rolling Plan 2-1 Create social and economic values through ESG strategy and increase corporate value 2022 Drive ESG strategy Social value Economic value Sustainable Increase Realize Realize long-term flows of people, sales and growth corporate val
Slide 22: Script: corporate value story
MTP2021-2025 Rolling Plan 2022 ● This page explains the story toward the enhancement of JAL Group's corporate value through the promotion of ESG strategies. ● We believe that promoting ESG-based strategies and creating economic values in addition to social values will contribute to the enhancement o
Slide 23: Aim to Achieve Net Zero CO2 Emissions by 2050
MTP2021-2025 ESG Aim to Achieve Net Zero CO2 Emissions by 2050 Rolling Plan 2-1 Following on steady progress in FY2021 to achieve targets, 2022 further accelerate initiatives in FY2022 ■ FY2030 CO2 reduction target FY2021 FY2022~ CO2 Emissions • Continue introduction of A350. (million tons) Upgrades
Slide 24: Script: CO2 emissions progress
MTP2021-2025 Rolling Plan 2022 ● On this page, I will explain the progress toward net zero CO2 emissions in 2050, which was presented last year. ● In FY2021, the number of flights was limited due to the pandemic. In addition to the introduction of fuel-efficient aircraft such as A350s and ATRs, furt
Slide 25: SAF Procurement Toward Net Zero by 2050
MTP2021-2025 ESG Aim to Achieve Net Zero CO2 Emissions by 2050 Rolling Plan 2-1 Accelerate initiatives in FY2030 aimed at achieving SAF load target by FY2050 2022 Realize stable procurement at appropriate prices through diverse SAF suppliers （10,000 kl） Target 40 Target amount 10% 35 Estimated procu
Slide 26: Script: SAF procurement
MTP2021-2025 Rolling Plan 2022 ● This page explains the current status of SAF procurement. ● In utilizing SAF, we aim to replace 10% of the total fuel load with SAF by 2030. ● At present, there is a shortage compared to the required amounts to achieve the target, therefore it is necessary to realize
Slide 27: Model Flight: Sustainable Flights
MTP2021-2025 Rolling Plan 2022 New value in air travel that we can take pride in Embrace the challenge of “sustainable flights” Haneda - Nov.2022 (month of COP27) Model flight Okinawa Domestic flight/A350 *Dates, aircraft, sectors, etc. are tentative Aircraft and fuel Passenger service Customers Emp
Slide 28: Script: model flight
MTP2021-2025 Rolling Plan 2022 ● We are planning a “Model flight” showing our sustainable operations during the COP in November this year. ● Please turn to Page 16. ©Japan Airlines, ALL rights reserved. S-14
Slide 29: Rolling Plan: Business Strategy
1. Outline of Medium Term Management Plan- Rolling Plan 2022 2. Three Pillars of Management Strategy Rolling Plan ESG Strategy 2030 2022 Business Strategy 2025 Finance Strategy 2025 3. Details of Strategy ©Japan Airlines, ALL rights reserved. 15
Slide 31: Business Targets of Business Model Reform
MTP2021-2025 Business Targets of Business Model Reform Rolling Plan 2-2 Accelerate business model reform to build resilience 2022 Targets in each business area Targets of Business Model Reform Structural Full Service Carrier Structural reform reform Business expansion LCC (FSC) EBIT Mileage, Lifesty
Slide 32: Script: business model reform targets
MTP2021-2025 Rolling Plan 2022 ● This page explains the specific goals of business structural reform. ● Improving profitability is the important issue for full-service carrier, which is our core business, and we set an EBIT margin of 8% or more, including cargo and mail. ● Business expansion is an i
Slide 33: Strengthen Collaboration Among Business Areas
MTP2021-2025 Business Strengthen Collaboration Among Business Areas Rolling Plan 2-2 Build a resilient business structure with growth potential by promoting Group management 2022 Portfolio management Create Group synergies ⚫ Design a business structure adaptive to ⚫ Maximize sales through synergic e
Slide 34: Script: business collaboration
MTP2021-2025 Rolling Plan 2022 ● The business structure reform will enable us to build a structure that combines resilience and growth in addition to accelerating efforts in each business domain. ● Please turn to Page 19. ©Japan Airlines, ALL rights reserved. S-17
Slide 35: Rolling Plan: Finance Strategy
1. Outline of Medium Term Management Plan- Rolling Plan 2022 2. Three Pillars of Management Strategy Rolling Plan ESG Strategy 2030 2022 Business Strategy 2025 Finance Strategy 2025 3. Details of Strategy ©Japan Airlines, ALL rights reserved. 18
Slide 37: Rebuild Financial Foundation
MTP2021-2025 Finance Rebuild Financial Foundation Rolling Plan 2-3 Strategically allocate resources to build risk resilience and capital efficiency 2022 End of Financial rebuilding Sustainable growth FY2021 phase phase 494.2 Bn JPY Secure and maintain 5.0~5.6 months worth of Liquidity Credit facilit
Slide 38: Script: financial strategy
MTP2021-2025 Rolling Plan 2022 ⚫ This page gives you an overview of our financial strategy. ⚫ Although the impact of the COVID-19 infection has been longer than initially expected, there is no change in our financial policy of strategically allocating resources with the aim of both strengthening ri
Slide 39: Growth Investment and Shareholder Return
MTP2021-2025 Finance Growth Investment and Shareholder Return Rolling Plan 2-3 Basic concept of cash flow allocation 2022 Gradually shift cash flow allocation from rebuilding of financial foundation to shareholder return and investment for sustainable growth End of FY2021 Rebuilding Phase Sustainabl
Slide 40: Script: cash flow allocation
MTP2021-2025 Rolling Plan 2022 ● This page explains the concept of resource allocation during the medium-term plan period. ● Considering the uncertain business environment, we are currently positioning it as the “financial foundation restructuring phase”. Specifically, we will carefully select inve
Slide 41: Investment Strategy
MTP2021-2025 Finance Investment Strategy Rolling Plan 2-3 Promote investment for sustainable growth with disciplined investment management 2022 All investments are to drive ESG management Actively utilize ESG finance to steadily upgrade to fuel-efficient aircraft 4 years total: Approx. 660 Bn JPY Ap
Slide 42: Script: investment strategy
MTP2021-2025 Rolling Plan 2022 ● This page provides an overview of our investment strategies ● As explained at the beginning, we have set ESG strategy as the basis of our management strategy and aim to solve social issues through our business activities. ● The JAL Group positions investment activi
Slide 43: Progress of Medium Term Management Targets
MTP2021-2025 Progress of Medium Term Management Targets Rolling Plan 2-4 Steadily work on FY2025 targets to achieve JAL Vision 2030 2022 FY 2025 target value FY2021 Results • Feb 15, 2022, JL2326: A passenger hit lower back due to turbulence during cruising and Aircraft Accidents and Serious Inciden
Slide 44: Script: progress of management targets
MTP2021-2025 Rolling Plan 2022 ● This page explains the progress of our management targets of the medium term management plan for FY2021. ● Regarding the "safety“, two accidents occurred, and the target was not achieved. ● For “Peace of Mind“, it exceeded the target both domestic and international b
Slide 45: Rolling Plan: Details of Strategy
1. Outline of Medium Term Management Plan-Rolling Plan 2022 Rolling Plan 2. Three Pillars of Management Strategy 2022 3. Details of Strategy 1. Accelerate Initiatives in Each Business Domain - Initiatives in Each Business Domain - Aircraft Strategy 2. Strategy in Key Business Areas - Mileage and Lif
Slide 47: Accelerate Initiatives in Each Business Area
MTP2021-2025 Rolling Plan 3-1 Accelerate Initiatives in Each Business Area Accelerate business model reform to build resilience 2022 FY2021 FY2022〜 Improve profitability during periods of Accelerate initiatives to increase profitability and low passenger demand recover/increase demand • Expand inter
Slide 48: Script: business area initiatives
MTP2021-2025 Rolling Plan 2022 ● On this page, we will present the efforts for each business area after FY2022. ● The full-service carrier business will increase profitability capturing the opportunity of recovery and expansion of demand. ● The LCC business will expand its business scale with a high
Slide 49: Aircraft Strategy
MTP2021-2025 Aircraft Strategy Rolling Plan 3-1 Adapt to changes in the business environment through flexible aircraft portfolios 2022 for Full Service Carrier (FSC) and LCCs Form a network with 229 Group aircraft Steadily promote renewal of flagship fleet Full Service Carrier (FSC) Reduce aircraft
Slide 50: Script: aircraft strategy
MTP2021-2025 Rolling Plan 2022 ● This page shows an overview of the JAL Group's aircraft strategy. ● We will strategically utilize full-service carriers and LCCs, and respond to changes in the business environment such as fluctuations in demand trends with a flexible aircraft portfolio. ● The number
Slide 51: Mileage and Lifestyle Business
MTP2021-2025 Mileage and Lifestyle Business Rolling Plan 3-2 Promote the JAL Mileage and Lifestyle Concept for the wellbeing of 2022 our customers and society Specific initiatives to promote the concept Initiatives in focused business areas JAL Mileage and Lifestyle Concept ◼ Introduce a new mileage
Slide 52: Script: mileage and lifestyle business
MTP2021-2025 Rolling Plan 2022 ● This page explains the strategy of the mileage - lifestyle business. ● We will promote the “JAL Mileage and Lifestyle Concept”, which aims to expand the services provided by focusing on miles in daily life. ● Through these efforts, EBIT will be doubled to 50 billion
Slide 53: Regional Business
MTP2021-2025 Regional Business Rolling Plan 3-2 Maximize regional attractiveness and value and create new flows 2022 Regional attractiveness JAL’s strengths Tourism resources, local specialty products Regional Business Route network Diverse traditions, cultures, natural features , etc. Human resourc
Slide 54: Script: regional business
MTP2021-2025 Rolling Plan 2022 ● This page explains the strategy of regional business. ● We will achieve a revenue of 10 billion yen as a regional business. ● Please turn to Page 28. ©Japan Airlines, ALL rights reserved. S-27
Slide 55: Air Mobility Business
MTP2021-2025 Air Mobility Business Rolling Plan 3-2 Realize seamless transportation in all regions to solve social issues 2022 Mechanisms to support safe operations Develop business models by area Promote the safe and optimized use of the sky Provide services according to issues and needs of each re
Slide 56: Script: air mobility business
MTP2021-2025 Rolling Plan 2022 ● This page describes the strategy of the air mobility business. ● Utilizing the know-how and technologies that support safe operation cultivated by JAL Group, we will establish an operation platform business in air mobility. ● By establishing these businesses, we will
Slide 57: DX Strategy
MTP2021-2025 DX Strategy Rolling Plan 3-3 Accelerate businesss model reform by building and utilizing Big Data through collaboration 2022 in the digital domain Expand service areas Expand customer base Service Platform collaboration ID collaboration Realize JAL Mileage and Lifestyle Other New busine
Slide 58: Script: DX strategy
MTP2021-2025 Rolling Plan 2022 ⚫ This page explains the strategy of DX. ⚫ By collaborating in the customer data base with other companies, we will build big data base and perform advanced analysis using artificial Intelligence. ● Please turn to Page 30. ©Japan Airlines, ALL rights reserved. S-29
Slide 59: HR Strategy
MTP2021-2025 HR Strategy Rolling Plan 3-3 Accelerate management strategy execution through the consolidated efforts of diverse 2022 human resources, our greatest strength Create new value Continuous productivity growth Placement and assignment Recruitment and development Business process ◼ Assign hu
Slide 60: Script: HR strategy
MTP2021-2025 Rolling Plan 2022 ● This page explains the human resources strategy. ● While steadily improving employee engagement, we will work to expand the allocation of human resources to growing business areas, develop the ability to play an active role in new fields, and improve operational effi
Slide 61: Fly into tomorrow. Disclaimer
MTP2021-2025 Rolling Plan 2022 Fly into tomorrow. 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 av

Japan Airlines — Investor Presentation (May 2022) on 6ix

Japan Airlines — Investor Presentation (May 2022)

Slide 1: JAL Group Medium Term Management Plan FY2021-2025 Rolling Plan 2022

Slide 2: Intentionally Blank

Slide 3: Table of Contents

Slide 4: Presentation script: introduction and chapter overview

Slide 5: On Formulating the Medium Term Management Plan Rolling Plan 2022

Slide 6: Intentionally Blank

Slide 7: JAL Vision 2030

Slide 8: Script: JAL Vision 2030

Slide 9: Rolling Plan: Outline of Medium Term Management Plan

Slide 10: Intentionally Blank

Slide 11: Timelines of Rolling Plan 2022

Slide 12: Script: timeline of Rolling Plan

Slide 13: Environmental Changes and Three Pillars of Management Strategy

Slide 14: Script: environmental changes

Slide 15: Safety and Security Initiatives

Slide 16: Script: safety and security initiatives

Slide 17: Three Pillars: ESG, Business, Finance Strategy

Slide 18: Intentionally Blank

Slide 19: ESG Strategy of the JAL Group

Slide 20: Script: ESG strategy

Slide 21: Story of Increasing Corporate Value

Slide 22: Script: corporate value story

Slide 23: Aim to Achieve Net Zero CO2 Emissions by 2050

Slide 24: Script: CO2 emissions progress

Slide 25: SAF Procurement Toward Net Zero by 2050

Slide 26: Script: SAF procurement

Slide 27: Model Flight: Sustainable Flights

Slide 28: Script: model flight

Slide 29: Rolling Plan: Business Strategy

Slide 30: Intentionally Blank

Slide 31: Business Targets of Business Model Reform

Slide 32: Script: business model reform targets

Slide 33: Strengthen Collaboration Among Business Areas

Slide 34: Script: business collaboration

Slide 35: Rolling Plan: Finance Strategy

Slide 36: Intentionally Blank

Slide 37: Rebuild Financial Foundation

Slide 38: Script: financial strategy

Slide 39: Growth Investment and Shareholder Return

Slide 40: Script: cash flow allocation

Slide 41: Investment Strategy

Slide 42: Script: investment strategy

Slide 43: Progress of Medium Term Management Targets

Slide 44: Script: progress of management targets

Slide 45: Rolling Plan: Details of Strategy

Slide 46: Intentionally Blank

Slide 47: Accelerate Initiatives in Each Business Area

Slide 48: Script: business area initiatives

Slide 49: Aircraft Strategy

Slide 50: Script: aircraft strategy

Slide 51: Mileage and Lifestyle Business

Slide 52: Script: mileage and lifestyle business

Slide 53: Regional Business

Slide 54: Script: regional business

Slide 55: Air Mobility Business

Slide 56: Script: air mobility business

Slide 57: DX Strategy

Slide 58: Script: DX strategy

Slide 59: HR Strategy

Slide 60: Script: HR strategy

Slide 61: Fly into tomorrow. Disclaimer