Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — FY2014 Earnings Presentation
44 slides from Japan Airlines's earnings presentation, Apr 30, 2015
Slide 1: Mar/2015 (FY2014) Financial Results
Mar/2015 (FY2014) Financial Results 30 April, 2015
Slide 2: Contents
Contents P.2 P.3 P.4 P.6 * HAC, Hokkaido Air System has been incorporated from the second half of the fiscal year 2014. 1
Slide 3: Overview of FY Mar/15 Financial Results
Overview of FY Mar/15 Financial Results Operating Revenue Operating Profit （JPY Bn） （JPY Bn） 1,400 200 20% 1,344.7 1,309.3 +35.3Bn 179.6 +12.8Bn (+2.7%) 166.7 (+7.7%) 16% 1,200 150 13.4% 12% 12.7% Operating Profit margin 1,000 100 8% Mar/2014 Full-Year Mar/2015 Full-year Mar/2014 Full-Year Mar/2015
Slide 4: Operating revenue and profit increased year on year
Operating revenue increased by 2.7% year on year to 1,344.7 billion yen, and operating profit increased by 7.7% year on year to 179.6 billion yen. We announced our full-year operating profit forecast was 167.0 billion yen in our consolidated financial results for the first nine months and Medium
Slide 5: Dividend for FY Mar/15
Dividend for FY Mar/15 Enhancement for Shareholders return Dividend per share for FY Mar/15 Approx. 20% of full-year Consolidated Net 104.00JPY Income excluding Income Tax-Deferred Mar/2015 Full-year Dividend Calculation FY Mar/14 New Announcement on Announcement January 30,2015 Consolidated Net Inc
Slide 6: Dividend payout ratio raised to 25%
As mentioned when announcing our third-quarter financial results, we revised our dividend payout ratio from this fiscal year from 20% to 25% of full-year consolidated net income after excluding the influence of income tax-deferred in order to enhance returns to our stockholders. Based on the new
Slide 7: Forecast Overview of Full-Year Mar/2016 (FY2015)
Forecast Overview of Full-Year Mar/2016 (FY2015) Operating Revenue Operating Profit （JPY Bn） （JPY Bn） 1,400 200 20% 1,344.7 1,328.0 179.6 ▲16.7Bn ▲7.6Bn 172.0 (▲1.2%) (▲4.3%) 16% 1,200 150 12% Operating 13.4% 13.0% Profit margin 1,000 100 8% Mar/2015 Full-Year Mar/2016 Full-Year Mar/2015 Full-Year M
Slide 8: Operating revenue and profit expected to decline
We expect our operating revenue to decline due to a reduction of fuel surcharge revenue and such. We also expect our operating profit to decline due to the weaker yen and such, but we will continue to make utmost efforts to achieve higher earnings on higher revenues. The operating profit margin
Slide 9: Progress of Medium Term Management Plan
Progress of Medium Term Management Plan Route Network Development Products and Services Enhancement Boeing 787-9 Int’l service “JAL SKY SUITE 787” unveiled ～Offers more space and comfort in JAL economy class～ 【New Route】 Nagoya(Chubu)＝Bangkok Osaka(Kansai)＝Los Angeles Expand / penetrate divisional p
Slide 10: Route expansion and product enhancement
We are expanding our route network and enhancing our products and services as a full service carrier. As part of new services, we started JAL Express Tag Service for domestic flights at Haneda from March 31, 2015. To maintain and increase our cost competitiveness, we are expanding and penetratin
Slide 11: Mar/2015 (FY2014) Financial Results Details
2015年3月期決算 業績詳細 Mar/2015 (FY2014) Financial Results Details 取締役専務執行役員 斉藤典和
Slide 12: Overview of Consolidated Financial Results
Overview of Consolidated Financial Results Consolidated Financial Results 4Q Operating revenue (JPY Bn) Mar/2014 Mar/2015 y/y (Jan-Mar) y/y Mar/2015 (1) reached 1,344.7 billion Operating Revenue 1,309.3 1,344.7 +2.7% 322.3 +0.9% yen,+2.7% year on year. Air Transportation Segment 1,166.6 1,196.2 +2
Slide 13: Operating revenue up 2.7% year on year
Operating revenue increased by 2.7% year on year to 1, 344.7 billion yen, primarily due to an increase in international passenger revenue. Operating expenses increased by 2.0% year on year to 1,165.0 billion yen, mainly due to the weaker yen and an increase in costs for service enhancements. As a
Slide 14: Changes in Operating Profit
Changes in Operating Profit Mar/2015(FY2014) （JPY Bn） +12.8Bn Impact From Currency Market ▲17.0Bn (+7.7%) ASK y/y： +0.8% Revenue ＋10.2Bn Cost ▲27.2Bn RPK y/y： +1.6% Fuel ▲18.1Bn Sales of Expenses of travel travel Ex. Fuel ▲9.1Bn Agency, Agency, Other Incidental Incidental Aircraft Depreciation Reven
Slide 15: Operating profit increased by 12.8 billion yen
Operating profit increased by 12.8 billion yen year on year, the breakdown of which is a revenue increase of 35.3 billion yen year on year and a cost increase of 22.4 billion yen. The 17.2 billion yen increase in international passenger revenue contributed greatly to the revenues, while the weak
Slide 16: International Passenger Operations (Operating Results)
International Passenger Operations (Operating Results) International Passenger 4Q(Jan-Mar) Passenger revenue was 454.8 Mar/2014 Mar/2015 y/y y/y Mar/2015(1) billion yen, +3.9% year on year. Passenger Revenue 108.8 (JPY Bn) 437.5 454.8 +3.9% +2.5% Revenue per Passenger was ASK (MN seat km) 46,235
Slide 17: ASK and RPK increased
ASK and RPK increased by 3.2% and 2.0% respectively year on year. As a result, the load factor declined by 0.8 point to 75.7%. 8-a
Slide 18: International Passenger Operations (Change in Revenue)
International Passenger Operations (Change in Revenue) Mar/2015(FY2014) (JPY Bn) ASK increased due new routes and +17.2Bn more flights. (+3.9%) +4.7 454.8 Expansion of JAL SKY SUITE +12.5 777/767/787 As a result, revenue per passenger increased. 437.5 Strong demand for inbound passengers Stro
Slide 19: Changes in international passenger revenue
As for changes in international passenger revenue, both the expansion of routes operated by JAL SKY SUITE offering greater comfort and functionality and an increase in inbound fares due to the weaker yen contributed to a rise in revenue per passenger. Also, demand for inbound passengers was great
Slide 20: Domestic Passenger Operations (Operating Results)
Domestic Passenger Operations (Operating Results) Domestic Passenger Mar/2014 Mar/2015 y/y 4Q (Jan-Mar) y/y Passenger revenue was 487.5 Mar/2015 (1) billion yen, similar level as the Passenger Revenue 487.4 previous year (JPY Bn) 487.5 +0.0% 114.5 +1.8% ASK (MN seat km) 37,084 36,306 ▲2.1% 8,848 +
Slide 21: ASK decreased while RPK increased
ASK decreased by 2.1% from the previous year, while RPK increased by 1.0%. As a result, the load factor rose by 2.1 points to 66.1%. 10-a
Slide 22: Domestic Passenger Operations (Change in Revenue)
Domestic Passenger Operations (Change in Revenue) Mar/2015(FY2014) (JPY Bn) +0.1Bn (+0.0%) Change in customer mix ・Increase in percentage of passengers 487.4 ▲6.4 +6.5 487.5 using promotional fares such as “Tokubin Discount 21” Implementation of various - Passenger Mix - Implementation of measur
Slide 23: Changes in domestic passenger revenue
Regarding changes in domestic passenger revenue, an increase in customer share using promotional fares such as Tokubin Discount 21 led to a lower unit price. On the other hand, the number of passengers increased by 1.4% year on year due to the expansion of JAL SKY NEXT operations and various measu
Slide 24: Major Operating Expense Items
Major Operating Expense Items Operating Expenses 4Q (JPY Bn) Mar/2014 Mar/2015 difference y/y (Jan-Mar) difference Fuel costs decreased by Mar/2015 (1) 0.8 billion yen. Fuel 283.3 282.5 ▲0.8 ▲0.3% 59.4 ▲11.5 Landing fees 80.2 81.6 +1.4 +1.8% 20.3 +0.9 Aircraft leases decreased by 4.3 Bn JPY due
Slide 25: Fuel and aircraft lease costs decreased
Due to the recent decline in fuel prices, fuel costs decreased by 0.8 billion yen from the previous year. Aircraft leases decreased by 4.3 billion yen from a year ago. Operating expenses on the whole ended at 1,165.0 billion yen, up 22.4 billion yen over the previous year. 12-a
Slide 26: Impact of Fuel and FX Markets
Impact of Fuel and FX Markets Hedge Ratio of Fuel Costs Transition of Fuel Cost by factors (As of End of FY Mar/15) 300 Approx. 100% 90% 283.3 ▲39.5 +20.6 282.5 Fuel FX 280 80% +18.1 260 60% Volume Approx. increase / 40% 240 Hedging etc 40% Market FX Approx. Approx. ▲0.8Bn 20% 10% 10% Approx. 5% App
Slide 27: Fuel costs declined by 0.8 billion yen
Fuel costs declined by 0.8 billion yen year on year, the breakdown of which is 39.5 billion yen decrease due to falling fuel prices, 18.1 billion yen increase due to the weaker yen, and 20.6 billion yen increase owing to an increase in fuel consumption, and such. 13-a
Slide 28: Major Balance Sheet Items
Major Balance Sheet Items Consolidated Balance Sheet Summary as of Mar/2015 End of FY2013 End of FY2014 (JPY Bn) difference 2014/3/31 2015/3/31 Total Assets 1,340.1 1,473.3 +133.1 The equity ratio Cash and Deposits 368.7 364.9 ▲3.7 increased by 1.2pt to 52.7% Balance of Interest-bearing Debt 134.2
Slide 29: Interest-bearing debt decreased
Outstanding interest-bearing debts decreased by 33.6 billion yen to 100.5 billion yen as we repaid lease obligations and long-term loans. Off balance sheet unexpired lease fees also decreased by 20.4 billion yen to 125.0 billion yen. The equity ratio increased by 1.2 points year on year to 52.
Slide 30: Major Cash Flow Items
Major Cash Flow Items (JPY Bn) FY Mar/14 FY Mar/15 Difference Net income before income taxes and minority interests 160.0 169.9 +9.8 Depreciation 82.7 85.8 +3.1 Other 5.1 5.3 +0.1 Cash Flow from Operating Activities 247.9 261.1 +13.1 Capital Expenditure (1) ▲164.5 ▲198.6 ▲34.0 Other ▲2.1 ▲0.6 +1.5 C
Slide 31: Cash flow from operating activities increased
Cash flow from operating increased by 13.1 billion yen to 261.1 billion yen. Cash flow from investing increased by 32.5 billion yen to 199.2 billion yen due to cash outflows for the launch of new aircraft, and such. Subsequently, free cash flow decreased by 19.3 billion yen to 61.8 billion yen
Slide 32: FY Mar/16 Earnings Forecast (Consolidated)
FY Mar/16 Earnings Forecast (Consolidated) FY Mar/15 FY Mar/16 (JPY Bn) difference Results Forecast FY3/15 FY3/16 Results Forecast Revenue 1,344.7 1,328.0 ▲16.7 ASK* Int’l +3.2% +3.1% Operating Expense 1,165.0 1,156.0 ▲9.0 Doms ▲2.1% +0.7% Operating Profit 179.6 172.0 ▲7.6 RPK* Int’l +2.0% +5.9% Ope
Slide 33: Operating revenue and profit forecast to decline
We expect our operating revenue to decline by 16.7 billion yen year on year to 1,328.0 billion yen. Operating profit is seen to decline by 7.6 billion yen year on year to 172.0 billion yen, and ordinary profit is expected to decline by 6.2 billion yen to 169.0 billion yen, but we will continue t
Slide 34: Changes in Operating Profit / Forecast Mar/2016
Changes in Operating Profit/ Forecast Mar/2016 (JPY Bn) Impact From Currency Market ▲14.0Bn Revenue ＋12.0Bn Cost ▲26.0Bn Fuel ▲16.0Bn ▲7.6Bn Ex. Fuel ▲10.0Bn 179.6 ▲9.8 +17.5 ▲8.5 +6.4 ▲1.3 ▲11.9 172.0 Mar/2015 Int'l Passenger Domestic Cargo & Mail Other Revenue Fuel Other Costs Mar/2016 Full year P
Slide 35: Operating profit planned at 172.0 billion yen
Operating profit for fiscal year 2015 is planned at 172.0 billion yen, down 7.6 billion yen from the previous year, the breakdown of which is an assumed revenue decrease due to a decline in fuel surcharge revenue, and such. Consequently, we expect revenue to decline by 16.7 billion yen year on yea
Slide 36: Mar/2016 Earnings Forecast (Balance Sheet / Cash Flow)
Mar/2016 Earnings Forecast (Consolidated Balance Sheet / Cash Flow) Maintain equity ratio of 50% or over and improve financial stability Consolidated Balance Sheet Consolidated Cash Flow Mar/2015 Mar/2016 Mar/2015 Mar/2016 （JPY Bn） Difference （JPY Bn） Difference Result Forecast Result Forecast Total
Slide 37: Forecast equity ratio and free cash flow
We forecast shareholders’ equity of 894.0 billion yen, resulting in an equity ratio of 56.5%, and we expect to maintain our 50% or over equity ratio target as set out in the Medium Term Management Plan. We forecast cash flows for operating and investing of 261.0 billion yen and 215.0 billion yen
Slide 38: Supplemental References
SUPPLEMENTAL REFERENCES
Slide 39: 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 4Q(Jan-Mar) 4Q(Jan-Mar) (%) Mar/2014 Mar/2015 y/y y/y (‘000) Mar/2014 Mar/2015 y/y y/y Mar/2015 Mar/2015 Trans Pacific 34.0% 35.5% +1.5pt 33.5% ▲0.0pt Trans Paci
Slide 40: Number of Aircraft in Service Mar/2015
《Supplemental Reference》 Number of Aircraft in Service Mar/2015 End of Mar/2014 End of Mar/2015 Difference Owned Leased Total Owned Leased Total Boeing 777-200 15 0 15 13 0 13 ▲2 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 41: Earnings Forecast Mar/2016: International Passenger Operations
《Supplemental Reference》 Earnings Forecast Mar/2016（ Air transportation Segment ） International Passenger Operations y/y （%） End of Mar/2015 End of Mar/2016 Result Forecast 1H 2H (Forecast) (Forecast) Passenger Revenue (JPY Bn) 454.8 ▲2.1% ▲2.5% ▲1.6% ASK (MN seat km) 47,696 +3.1% +2.1% +4.1% RPK (M
Slide 42: Earnings Forecast Mar/2016: Domestic Passenger Operations
《Supplemental Reference》 Earnings Forecast Mar/2016（ Air transportation Segment ） Domestic Passenger Operations y/y （%） End of Mar/2015 End of Mar/2016 Result Forecast 1H 2H (Forecast) (Forecast) Passenger Revenue (JPY Bn) 487.5 +1.4% +1.4% +1.4% ASK (MN seat km) 36,306 +0.7% ▲0.6% +2.1% RPK (MN pas
Slide 43: Contact: Finance, Japan Airlines
Contact: Finance, Japan Airlines +81-3-5460-3068
Slide 44: 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