Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — FY2020 Earnings Presentation

21 slides from Japan Airlines's earnings presentation, May 7, 2021

  1. Slide 1: Financial Results MAR/2021 (FY2020)

    JAPAN AIRLINES Co., Ltd. Financial Results MAR/2021（FY2020） (1) (2) The first airline in Asia to be best-awarded in the two safety ratings May 7, 2021 (1) Awarded Diamond Certification for the first time to a Japanese airline by APEX Health Safety powered by SimpliFlying in COVID-19 safety measures

  2. Slide 2: Agenda and IFRS adoption note

    SKYTRAX SKYTRAX 2019 The World’s Best Economy Class 5-Star Airline The Best Economy Class Seat The 8th 1. PERFORMANCE OVERVIEW FOR MAR/21 APEX SKYTRAX IR Good Visual Award Health Safety Powered Covid-19 Safety Rating by SimpliFlying Audit 2. MAR/22 5-Satr Diamond 3. DETAILS OF FINANCIAL RESULTS FOR

  3. Slide 3: Performance Overview for MAR/21

    PERFORMANCE OVERVIEW FOR MAR/21 ✓ Large drop in revenue due to the COVID-19 pandemic ✓ Despite the cost reduction efforts, we were unable to cover the decline in revenue and posted a significant loss Revenue(1) EBIT (1)(2)/Profit or Loss (1)(3) （JPY Bn） （JPY Bn） 1,600.0 EBIT Profit or Loss 1,385.9 2

  4. Slide 4: MAR/22

    1. PERFORMANCE OVERVIEW FOR MAR/21 2. MAR/22 3. DETAILS OF FINANCIAL RESULTS FOR MAR/21 4. REFERENCES ©Japan Airlines, ALL rights reserved. 4

  5. Slide 5: FY21 Full-year Performance Forecast

    FY21 Full-year Performance Forecast No forecast cannot be provided but a break-even matrix is shown as below ✓ FY2021 full year performance forecast cannot be provided because International Passenger Demand is not foreseeable due to COVID-19 ✓ However, EBIT & EBITDA(1) break-even Int’l PAX/Domestic

  6. Slide 6: FY21 Recent Outlook

    FY21 Recent Outlook Int’l/Domestic Passenger Operations (Full Service Carrier), Cargo / Mail ✓ International Passenger remains at a low level due to travel restrictions ✓ Domestic passenger demand still remains unclear ✓ In Cargo and Mail, demand is captured as much as possible through more than 1,0

  7. Slide 7: Initiatives for liquidity at hand

    Initiatives for liquidity at hand Liquidity and cash burn ✓ Enough liquidity level of more than 700 billion yen including unused credit line as of the end of March 2021 ✓ FY20/Q4 Cash burn was about 15～20 billion yen per month. Strong cargo demand and less refund will lead improved cash burn going f

  8. Slide 8: Cost Management

    Reposted from the FY2021-2025 Mid-term Management Plan disclosed on May 7, 2021 Business Cost Management Flexible Variable Cost Management and Fixed Cost Reduction through Structural Reforms and further Streamlining and Productivity Improvement Past Measures • Thorough structural reforms, followed b

  9. Slide 9: Details of Financial Results for MAR/21

    1. PERFORMANCE OVERVIEW FOR MAR/21 2. MAR/22 3. DETAILS OF FINANCIAL RESULTS FOR MAR/21 4. REFERENCES ©Japan Airlines, ALL rights reserved. 9

  10. Slide 10: Consolidated Financial Results

    DETAILS OF FINANCIAL RESULTS FOR MAR/21 Consolidated Financial Results (1) 4th Quarter （JPY Bn） FY2019 FY2020 Diff. y/y (Jan-Mar)(6) Diff. y/y Revenue 1,385.9 481.2 ▼904.6 ▼65.3％ 124.6 ▼148.5 ▼54.4％ International Passenger 486.2 27.9 ▼458.2 ▼94.2％ 9.1 ▼75.7 ▼89.3％ Domestic Passenger 529.7 174.0 ▼355

  11. Slide 11: Changes in EBIT (Revenues/Expenses)

    DETAILS OF FINANCIAL RESULTS FOR MAR/21 Changes in EBIT (Revenues／Expenses) (1) (2) ASK y/y： ▼64.8% ＋ stands for profit increase (revenue increase, cost decrease) RPK y/y： ▼84.3％ ▼ stands for profit decrease (revenue decrease, cost increase) ▼4,871億円 ▼487.1Bn （JPY Bn） 88.8 FY2019 Int’l Passenger ▼45

  12. Slide 12: Int'l/Domestic Passenger Operations (Full Service Carrier)

    DETAILS OF FINANCIAL RESULTS FOR MAR/21 Int’l/Domestic Passenger Operations (Full Service Carrier) ✓ Int’l Passenger remained low throughout this fiscal year due to travel restrictions ✓ Domestic Passenger dropped due to the third wave but base demand was captured International Passenger (1) Domesti

  13. Slide 13: Cargo / Mail

    DETAILS OF FINANCIAL RESULTS FOR MAR/21 Cargo / Mail ✓ Price levels remained high due to demand-tight situations continued and Cargo revenue increased significantly (yoy+40.6%) in spite of the limited passenger flights. ✓ Cargo flights utilizing passenger aircrafts totaled at 15,299 throughout this

  14. Slide 14: Major Operating Expense Items

    DETAILS OF FINANCIAL RESULTS FOR MAR/21 Major Operating Expense Items (1) ✓ Reduced revenue- and capacity-linked costs, equivalent of approximately 41% of reduced revenue (368.0 Bn JPY) ✓ Fixed cost is steadily reduced by about 135 billion yen from the original plan 4th Quarter （JPY Bn） FY2019 FY202

  15. Slide 15: Summary of Consolidated Statement of Financial Position and Cash Flow

    DETAILS OF FINANCIAL RESULTS FOR MAR/21 Summary of Consolidated Statement of Financial Position and Cash Flow (1) ✓ Equity of 947.4 billion yen and Debt-Equity Ratio of 45.0% were secured in a difficult situation BS ✓ Interest-bearing debts including lease payment is 515.1 bn. yen and repayment with

  16. Slide 16: References

    1. PERFORMANCE OVERVIEW FOR MAR/21 2. MAR/22 3. DETAILS OF FINANCIAL RESULTS FOR MAR/21 4. REFERENCES ©Japan Airlines, ALL rights reserved. 16

  17. Slide 17: Operation Performance by Geographic Segment

    《Reference》 Operation Performance by Geographic Segment (Full Service Carrier) Passenger Revenue (1) Revenue Passengers Carried (1) (2) 4Q Component Ratio 4Q (3Months) (%) FY2020 3Months (‘000) FY2019 FY2020 y/y y/y 4Q FY2020 y/y y/y FY2019 FY2020 3Months America 1,511 102 ▼93.2% 37 ▼87.6% America ▼

  18. Slide 18: Fleet Information

    《 Reference 》 Fleet Information End of Mar/20 (March 31, 2020) End of Mar/21 (March 31, 2021) Diff. Owned Leased Total Owned Leased Total 1 Total 2 retired aircraft Total2 of Mar/21 - excluded Mar/20 Airbus A350-900 4 1 5 4 4 8 8 +3 Boeing 777-300ER 13 0 13 13 0 13 13 - (2) Boeing 777-300 4 0 4 4 0

  19. Slide 19: Accounting Impact by IFRS Adoption

    《Reference》 Accounting Impact by IFRS Adoption Profit/Loss Statement ◼ Due to changes in accounting rules for mileage points, revenue allocated to mileage points is deferred as a liability, and recognized when miles are redeemed (The impacts to Profit/loss are limited) ◼ Our main index for performan

  20. Slide 20: Fly into tomorrow.

    Fly into tomorrow. Finance & Investor Relations, Japan Airlines ©Japan Airlines, ALL rights reserved. 20

  21. Slide 21: 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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