Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — FY2023 Earnings Presentation
35 slides from Japan Airlines's earnings presentation, May 2, 2024
Slide 1: Financial Results Mar/2024 (FY2023)
JAPAN AIRLINES Co.,Ltd. Financial Results Mar/2024（FY2023） May 2, 2024 ©Japan Airlines, ALL rights reserved.
Slide 2: Performance Overview, Details of Financial Results, References
SKYTRAX SKYTRAX 2023 World Airline Star APEX Best Wi-Fi in Eastern World's Best Economy Class Rating Asia 2024APEX" Best Economy Class Airline seat 5-Star WORLD CLASS 1. PERFORMANCE OVERVIEW FOR FY23 2. DETAILS OF FINANCIAL RESULTS FOR FY23 3. REFERENCES Health and Productivity Management Brand ※ TH
Slide 3: Performance Overview for FY2023
Performance Overview for FY2023 ✔ Both revenue and profit increased year on year by actively capturing strong inbound demand, exceeding the profit forecast by 5 billion yen. ✔ Year-end dividend increased from 40 to 45 yen per share. Annual dividend forecast is 75 yen per share. (Payout ratio of 34%) R
Slide 4: FY2023 revenue and EBIT commentary
● In the fiscal year 2023, our revenue was 1 trillion and 651.8 Billion Yen, which is a 276 billion yen increase year on year, mainly due to the steady recovery of passenger demand especially Japan-bound traffic. This is also 265 billion yen more than the pre-Covid level of 2019 revenue. ● EBIT was
Slide 5: FY2023 Performance by Business Domain
FY2023 Performance by Business Domain ✔ Revenue and EBIT improved significantly, driven by Full Service Carrier ✔ LCC turned profitable. Mileage, Lifestyle and Infrastructure steadily recorded profit Revenue by Business Domain EBIT by Business Domain Full Service Carrier Cargo and Mail LCC(1) Full Serv
Slide 6: Business domain results commentary
● This page shows the result of each business domain using internal management figures. ● The full-service carrier business area continued to drive earnings, posting an EBIT profit of 98.6 billion yen for the fiscal year. ● The LCC business domain also posted a positive EBIT of 2.4 billion yen, refl
Slide 7: Details of Financial Results for FY23
1. PERFORMANCE OVERVIEW FOR FY23 2. DETAILS OF FINANCIAL RESULTS FOR FY23 3. REFERENCES ©Japan Airlines, ALL rights reserved. 5
Slide 8: Intentionally Left Blank
Intentionally Left Blank ©Japan Airlines, ALL rights reserved.
Slide 9: Details of financial results for FY2023: Consolidated Financial Results
Details of financial results for FY2023 Consolidated Financial Results Q4 (Apr. to Mar.) Q4 (Jan. to Mar.) (JPY Bn) Vs. FY19 Vs. FY22 Vs. FY22 FY19 FY22 FY23 FY23 Diff. y/y Diff. y/y Diff. y/y Revenue 1,385.9 1,375.5 1,651.8 +265.9 +19.2% +276.3 +20.1% 402.5 +32.5 +8.8% Full Service Carrier 1,126.3 1,10
Slide 10: Consolidated results commentary
● From this page, I will show you the results for the Fiscal Year 2023. ● Page 6 shows our consolidated results. ©Japan Airlines, ALL rights reserved. 6-S
Slide 11: Changes in EBIT (Revenues/Expenses)
Details of financial results for FY2023 Changes in EBIT (Revenues／Expenses) + stands for profit increase（ revenue increase, cost decrease ) RPK y/y ： +33.4% ＋80.6 Bn ▼ stands for profit decrease ( revenue decrease, cost increase ) ASK y/y ： +16.6% （JPY Bn） Domestic Cargo and Mileage,Lifestyle and Passe
Slide 12: EBIT change factors commentary
● This page shows the factors behind the improvement in EBIT through revenue and expense. ● Revenues increased significantly by 276.3 billion yen from the previous fiscal year, due to increases in international and domestic passenger business, LCCs, and Mileage, Lifestyle and Infrastructure Business
Slide 13: Changes in EBIT (Market and other impact)
Details of financial results for FY2023 Changes in EBIT (Market and other impact) （JPY Bn） + stands for profit increase（revenue increase, cost decrease) Impact from ▼stands for profit decrease (revenue decrease, cost increase) ＋80.6 Bn Currency Market ▼17.2 Bn Revenue +20.4 Bn (Excl. Market Impact) Cos
Slide 14: EBIT market impact commentary
● This page shows the EBIT improvement by dividing it into market impacts and other factors. ● Jet fuel prices were lower than the previous year, resulting in a 4.0 billion yen improvement in EBIT year on year. ● Excluding the impact of market conditions, EBIT was improved by 76.6 billion yen. ©Japa
Slide 15: Int'l & Domestic Passenger Operations (Full Service Carrier)
Details of financial results for FY2023 Int’l & Domestic Passenger Operations (Full Service Carrier) ✔ Int’l PAX: Despite temporary weakness in demand, steady recovery toward March. Demand is expected to exceed 70% of CY19 after April, maintaining a high level of unit price. ✔ Dom. PAX: Revenue in li
Slide 16: Passenger demand and unit price commentary
● This page shows the current demand and unit price situations. ● For international passengers, demand weakened temporarily during the winter season, resulting in a recovery of 68% in the fourth quarter compared to 2019. Demand itself is improving toward the end of the fiscal year and is expected to
Slide 17: Int'l & Domestic Passenger Operations data
Details of financial results for FY2023 Int’l & Domestic Passenger Operations (Full Service Carrier) Q4 (Apr. to Mar.) Q4 (Jan. to Mar.) International Passenger CY19 (4) FY22 FY23 Vs. CY19 Vs. FY22 FY23 Vs. FY22 Passenger Revenue (JPY Bn) 531.2 417.5 622.3 +17.2% +49.1% 150.6 +15.5% Passengers (’000)
Slide 18: Full-Service carrier passenger business commentary
● This page shows the performance of the Full-Service carrier passenger business. ● The number of passengers on international routes was 68% compared to 2019, and as a result of a 73% increase in unit price, the revenue exceeded the pre-Covid level by approximately 17% of passenger revenue, 622.3 bi
Slide 19: Cargo
Details of financial results for FY2023 Cargo ✔ Revenue exceeded pre-pandemic levels by maximizing volume, through high value-added cargo such as pharmaceuticals, despite difficult market conditions. ✔ Taking on new business challenges, mainly on East Asia routes with strong express and e-commerce dema
Slide 20: Cargo business commentary
● This page shows the performance of our Cargo business. ● For international cargo business, efforts to maximize volume, particularly of pharmaceuticals and other high value-added cargo, resulted in the revenue well above 2019 levels. In addition, although the unit price declined from the previous y
Slide 21: LCC
Details of financial results for FY2023 LCC ✔ ZIPAIR started service on the Vancouver route in March, steadily making profits by capturing strong inbound demand. High load factor expected in April and beyond. Q4 (Apr. to Mar.) Q4 (Jan. to Mar.) ZIPAIR FY22 FY23 Vs. FY22 FY23 Vs. FY22 Passenger Revenue
Slide 22: LCC business commentary
● This page shows the performance of our LCC business. ● ZIPAIR launched Vancouver routes in March. They are showing steady growth with an increase in total passengers and revenues. ● Spring Japan is also showing signs of recovery, especially during peak seasons. ©Japan Airlines, ALL rights reserved
Slide 23: Expenses
Details of financial results for FY2023 Expenses ✔ Actual fixed costs was 507.6 billion yen, achieved through steady cost control Major Operating Expense Items Q4 (Apr. to Mar.) Q4 (Jan. to Mar.) （JPY Bn） Vs. FY19 Vs. FY22 Vs. FY22 FY19 FY22 FY23 FY23 Diff. y/y Diff. y/y Diff. y/y Fuel 243.4 323.3 356.7
Slide 24: Cost breakdown commentary
● This page shows the breakdown of the cost. ● Total operating expenses increased by 197.6 billion yen from the previous year to 1 trillion and 542.2 billion yen, due to the impact of market conditions such as the depreciation of Yen, as well as an increase in expenses linked to the scale of operati
Slide 25: Fuel Costs
Details of financial results for FY2023 Fuel Costs Changes in fuel costs Hedge Ratio (As of End of Mar./2024) （JPY Bn） Hedging Volume Market and others +40.1 ▼70.0 FX +41.7 356.7 323.3 +21.5 ＋33.4Bn (+10.3%) FY24 FY25 FY26 FY22 FY23 Fuel Hedging FX Hedging Foreign currency ❏ Hedging conducted for Fue
Slide 26: Fuel cost and hedging commentary
● This page explains our fuel cost and hedging. ● The fuel cost for fiscal year 2023 was 356.7 billion yen, increased by 33.4 billion yen year-on-year. ● The upper right graph shows the current progress of hedging. The lower part of the graph shows the conceptual diagram of our fuel and currency hed
Slide 27: Balance Sheet and Cash Flow
Details of financial results for FY2023 Balance Sheet and Cash Flow BS ✔ Equity ratio is 41.0% and Net D/E ratio is x0.0 both in terms of credit rating evaluation basis, kept at a healthy level CF ✔ Cash flow from Operating Activities is 363.9 billion yen. Free Cash Flow maintained at previous year's
Slide 28: Balance sheet and cash flow commentary
● Finally, I will explain our balance sheet and cash flow. ● The equity ratio on a credit rating basis is 41.0% and the net D/E ratio on a credit rating basis is 0.0 times. ● Our cash position at the end of March 2024 was 713.8 billion yen, which is 74.6 billion yen increase from the end of March 20
Slide 29: References
1. PERFORMANCE OVERVIEW FOR FY23 2. DETAILS OF FINANCIAL RESULTS FOR FY23 3. REFERENCES ©Japan Airlines, ALL rights reserved. 16
Slide 30: Operation Performance by Geographic Segment (Full Service Carrier)
[Reference] Operation Performance by Geographic Segment (Full Service Carrier) Passenger Revenue Revenue Passengers Carried Q4 (Apr. to Mar.) Q4 (Jan. to Mar.) Q4 (Apr. to Mar.) Q4 (Jan. to Mar.) FY23 FY23Q4 ('000) (%） FY23 Vs. FY19 Vs. FY22 FY23 Vs. FY22 Component Vs. FY19 Vs. FY22 Component Vs. FY
Slide 31: Fleet Information
[Reference] Fleet Information End of FY22 (March 31, 2023) End of FY23 (March 31, 2024) Diff. Owned Leased Total Owned Leased Total Airbus A350-1000 0 0 0 3 0 3 +3 Airbus A350-900 12 4 16 11 4 15 ▼1 Large Boeing 777-300ER 13 0 13 13 0 13 0 Boeing 777-200ER 3 0 3 0 0 0 ▼3 Large-sized Total 28 4 32 27
Slide 32: Details of FY2024 Full-Year Performance Forecast
[Reference] Details of FY2024 Full-Year Performance Forecast FY23 FY24 (JPY Bn) Result Forecast Diff. vs. FY23 y/y vs. FY23 Revenue 1,651.8 1,930.0 +278.1 +16.8% Full Service Carrier 1,322.5 1,503.0 +180.4 +13.6% International PAX 622.3 710.0 +87.6 +14.1% Domestic PAX 550.8 598.0 +47.1 +8.6% Cargo an
Slide 33: FY2024 Earnings Forecast (Air transportation Segment)
[Reference] FY2024 Earnings Forecast (Air transportation Segment) FY24 Vs. CY19(%) Vs. FY23(%) International Passenger CY19 (4) FY23 Forecast Full-year 1st Half 2nd Half Full-year 1st Half 2nd Half Passenger Revenue (JPY Bn) 531.2 622.3 710.0 +33.6% +27.1% +40.5% +14.1% +10.4% +17.9% Passengers (’00
Slide 34: Fly into tomorrow.
Fly into tomorrow. Finance & Investor Relations Japan Airlines ©Japan Airlines, ALL rights reserved. 21
Slide 35: 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