Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q1 FY2014 Earnings Presentation
18 slides from Japan Airlines's earnings presentation, Jul 29, 2014
Slide 1: Financial Results 1st Quarter Mar/2015 (FY2014)
Financial Results 1st Quarter Mar / 2015 (FY2014) 29 July, 2014 Norikazu Saito Director, Senior Managing Executive Officer
Slide 2: Today's Topics
Today’s Topics Q JAPAN AIRLINES OVERVIEW OF FINANCIAL RESULTS FOR 1ST QUARTER MAR/2015 (FY2014) C2) - DETAILS OF FINANCIAL RESULTS FOR “4 4ST QUARTER MAR/2015 (FY2014) SUPPLEMENTAL REFERENCES
Slide 3: Overview of 1st Quarter FY3/15 Financial Results
Overview of 1st Quarter FY3/15 Financial Results Operating Revenue Operating Profit 40 10% 320 7.5% 6.1% 30 307.0 Operating Profit Margin ＋4.4% 20 5% 300 294.1 22.0 18.6 10 280 0 0% 1st Quarter 1ST Quarter 1st Quarter 1ST Quarter （JPY Bn） （JPY Bn） FY3/14 FY3/15 FY3/14 FY3/15 OIL・FX Markets Due to
Slide 4: Consolidated Financial Results
Consolidated Financial Results Consolidated Financial Results 1st Quarter FY3/15 1st Quarter 1ST Quarter JPY Bn % y/y FY3/14 FY3/15 Revenue 294.1 307.0 +4.4% Air transportation segment 262.9 274.1 +4.3% Operating Expense 272.0 288.4 +6.0% Air transportation segment 244.4 258.9 +5.9% Operating Profit
Slide 5: Changes of Operating Profit
Changes of Operating Profit 1st Quarter FY3/15 ▲3.4Bn （JPY Bn） Impact From Currency Market ▲2.1Bn (▲15.6%) Revenue ＋1.0Bn ASK y/y： +0.4% Cost ▲3.1Bn Sales of Expenses of Fuel ▲2.1Bn travel travel RPK y/y： +3.9% Expect Fuel ▲1.0Bn Agency ・ Agency ・ Incidential Incidential Business(※) Business(※) Carg
Slide 6: International Passenger Operations (Operating Results)
International Passenger Operations (Operating Results) International Passenger 1Q FY3/14 1Q FY3/15 % y/y Passenger Revenue 98.9 107.2 +8.4% The RPK increase outstripped (JPY Bn) the ASK increase. ASK（MN seat km） 11,260 11,728 +4.2% As a result, the load factor RPK（MN passenger km） 8,180 8,596 +5
Slide 7: International Passenger Operations (Changes of Revenue)
International Passenger Operations (Changes of Revenue) 1st Quarter FY3/15 +8.2Bn (+8.4%) 107.2 From March 30, 2014, we increased flights from Haneda. 2.9 Increased flights between NRT and New 5.4 York/Jakarta and launched route ・Strong inbound 98.9 demand and outbound between HND and Ho Chi Min
Slide 8: Domestic Passenger Operations (Operating Results)
Domestic Passenger Operations (Operating Results) Domestic Passenger 1Q FY3/14 1Q FY3/15 % y/y Passenger Revenue Though ASK declined by 4.0%, (JPY Bn) 108.8 105.7 ▲2.8% RPK was up 2.2%, and Load Factor also improved. ASK（MN seat km） 9,444 9,067 ▲4.0% RPK（MN passenger km） 5,531 5,654 +2.2% Yield
Slide 9: Domestic Passenger Operations (Changes of Revenue)
Domestic Passenger Operations (Changes of Revenue) 1st Quarter FY3/15 ▲3.0Bn (▲2.8%) 108.8 Sales of new Tokubin Discount 21 fares were strong. ▲5.2 105.7 Passengers using Dynamic 2.1 Packages increased. ・Customer mix, Extended the booking time limit of etc. ・Strong sales of Advance purchase fa
Slide 10: Major Operating Expense Items
Major Operating Expense Items Breakdown of Operating Expenses （JPY Bn） 1Q FY3/14 1Q FY3/15 Difference % y/y Fuel 68.3 73.6 +5.3 +7.8% Fuel costs increased by 5.3 billion yen due to FX Landing fees 20.0 19.9 ▲0.0 ▲0.1% and rising jet fuel prices. Maintenance 9.6 11.2 +1.6 +16.7% Sales Commissions
Slide 11: Analysis of Fuel Effect
Analysis of Fuel Effect Hedging Ratio for Fuel Costs Impact from Fuel (As of End of 1Q FY3/15) （JPY Bn） +5.3Bn (+7.8%) 100% 800 Approx. 80% +1.6 +2.1 +1.6 80% 700 ■fuel □FX Fuel loaded/ 60% Market Approx. Fx deferred gains or losses on hedges 40% Approx. 40% etc 600 68.3 73.6 Approx. 25% 15% Approx.
Slide 12: Major Balance Sheet Items
Major Balance Sheet Items Consolidated Balance Sheet Summary End of 1st Quarter FY3/15 End of FY2013 End of 1Q FY3/15 （ JPY Bn） Difference 2014/3/31 2014/6/30 Total Assets 1,340.1 1,342.3 +2.2 The balance of interest- bearing debt decreased by Cash and Deposits 368.7 348.4 ▲20.2 11. 1 billion yen
Slide 13: Major Cash Flow Items
Major Cash Flow Items (JPY Bn) 1Q FY3/14 1Q FY3/15 Difference Net income before income taxes and minority interests 20.9 17.5 ▲3.4 Depreciation 19.6 21.3 +1.6 Other 17.8 23.0 +5.2 Cash Flow from Operating Activities 58.4 61.9 +3.5 Capital Expenditure (1) ▲25.8 ▲43.0 ▲17.2 Other 1.8 1.6 ▲0.1 Cash Flo
Slide 14: Earnings Forecast for Mar/2015 (FY2014, Consolidated)
Earnings Forecast for Mar/2015 (FY2014, Consolidated) Mar/2014 Mar/2015 Mar/2014 Mar/2015 Result Forecast （JPY Bn） Difference Result Forecast ASK* Int’l +3.3% +4.9% Doms +1.8% ▲2.1% Operating Revenue 1,309.3 1,350.0 +40.6 RPK* Int’l +4.0% +2.7% Doms +3.2% ▲0.8% Operating Expense 1,142.5 1,210.0 +67.
Slide 15: Contact: Finance, Japan Airlines
Contact: Finance, Japan Airlines +81-3-5460-3068
Slide 16: 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 1Q/ 1Q/ 1Q/ 1Q/ (%) Difference (‘000) y/y FY2013 FY2014 FY2013 FY2014 Trans Pacific 33.0% 35.0% +2.0pt Trans Pacific 400 449 +12.2% Europe 19.0% 18.0% ▲1.0pt Eur
Slide 17: Supplemental Reference: Number of Aircraft in Service
《Supplemental Reference》 Number of Aircraft in Service JUN/2014 End of Mar/2014 End of Jun/2014 Difference Owned Leased Total Owned Leased Total Boeing 777-200 15 0 15 14 0 14 ▲1 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 4
Slide 18: Disclaimer
Disclaimer 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 cre