Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — Q3 FY2015 Earnings Presentation

20 slides from Japan Airlines's earnings presentation, Jan 29, 2016

  1. Slide 1: Financial Results 3rd Quarter MAR/2016 (FY2015)

    Financial Results 3rd Quarter MAR/2016 (FY2015) January 29th, 2016

  2. Slide 2: Contents

    CONTENTS @ | JAPAN AIRLINES DETAILS OF 38° QUARTER MAR/16 ™ FINANCIAL RESULTS SUPPLEMENTAL REFERENCES OVERVIEW OF 3®2 QUARTER Ce) MAR/16 RESULTS Cr) DIVIDEND FORECAST FOR MARI16 PROGRESS OF MEDIUM TERM MANAGEMENT PLAN

  3. Slide 3: Overview of 3rd Quarter FY MAR/16 Results

    Overview of 3rd Quarter FY MAR/16 Results Operating Revenue Operating Profit （JPY Bn） Operating Profit Margin （JPY Bn） 1,030 180 170.0 20% 1,022.3 ＋1.0Bn 1,023.4 160 ＋31.7Bn 18% （+0.1%） 1,020 140 138.2 (+23.0%) 16% 16.6% 120 14% 1,010 100 13.5% 12% 1,000 80 10% 3rd Quarter 3rd Quarter 3rd Quarter 3r

  4. Slide 4: Dividend Forecast for FY3/16

    Dividend Forecast for FY3/16 Dividend Forecast FY 3/15 Forecast for (Result) FY 3/16 Dividend per share for FY3/16 Net Income(※) 149.0 JPY Bn 172.0 JPY Bn FY3/16 － 119.00JPY Income Tax-Deferred 1.3 JPY Bn （Forecast） +15.00JPY (+14.4%) 150.3 JPY Bn 172.0 JPY Bn Total amount for 37.7 JPY Bn 43.1 JPY B

  5. Slide 5: Progress of Medium Term Management Plan

    Progress of Medium Term Management Plan Product and Service Enhancements ～JAL is the World’s Best Airline for On-time Flights～ ～JAL is ranked No.1 for “Loyalty” for 3 consecutive years ※Announced on January 7th, 2016 and No.1 for “Customer Satisfaction” for the first time in  Major International Ai

  6. Slide 6: Consolidated Financial Results

    Consolidated Financial Results Consolidated Financial Results 3rd Quarter Mar/16 3rd Quarter 3rd Quarter 3rd Quarter （JPY Bn） y/y ratio (5) y/y ratio  Operating revenue was Mar/2015 Mar/2016 (Oct-Dec) 1,023.4 billion yen, up Operating Revenue 1,022.3 1,023.4 +0.1% 335.4 ▲0.9% 0.1% y/y. Air Transpor

  7. Slide 7: Changes in Operating Profit

    Changes in Operating Profit 3rd Quarter FY Mar/16 （JPY Bn） +31.7Bn Impact From Currency (+23.0%) Aircraft Maintenance Market ▲JPY20.1Bn Fuel Depreciation Revenue ＋JPY12.4Bn and Cost ▲JPY32.5Bn ▲6.7 Leases Personnel Fuel ▲JPY20.5Bn ▲1.8 Ex. Fuel ▲JPY12.0Bn ▲21.9% ▲2.6% ▲8.1 Other Costs ASK y/y： +0.2%

  8. Slide 8: International Passenger Operations (Operating Results)

    International Passenger Operations (Operating Results) International Passenger 3rd Quarter 3rd Quarter 3rd Quarter  Passenger revenue was 345.9 y/y (Oct-Dec) (1) y/y Mar/2015 Mar/2016 billion yen, unchanged y/y Passenger basis. Revenue 345.9 345.9 ▲0.0% 110.3 ▲1.5%  ASK was up 1.1% and RPK （JPY Bn

  9. Slide 9: International Passenger Operations (Change in Revenue)

    International Passenger Operations(Change in Revenue) 3rd Quarter FY Mar/16 （JPY Bn） ▲JPY0.0 Bn  Although revenue per passenger (▲0.0%) declined due to a decrease in fuel surcharge, revenue management and expansion of JAL SKY SUITE 345.9 345.9 contributed to an increase in L/F and net unit price. ▲

  10. Slide 10: Domestic Passenger Operations (Operating Results)

    Domestic Passenger Operations (Operating Results) Domestic Passenger 3rd Quarter 3rd Quarter 3rd Quarter  Passenger revenue was y/y y/y Mar/2015 Mar/2016 (Oct-Dec) (1) 384.1 billion yen, up 3.0% Passenger y/y. Revenue 373.0 384.1 +3.0% 127.3 +2.0% （JPY Bn） ASK  ASK was ▲1.1% while （MN seat km） 27,

  11. Slide 11: Domestic Passenger Operations (Change in Revenue)

    Domestic Passenger Operations(Change in Revenue) 3rd Quarter FY Mar/16 （JPY Bn）  Changes in customer mix through +JPY11.1Bn revenue management (+3.0%) ・Well-reputed JAL SKY NEXT 384.1 ・Increase of individual passengers +5.0  Increase in passenger numbers through measures to boost demand +6.1 etc..

  12. Slide 12: Major Operating Expense Items

    Major Operating Expense Items Operating Expenses  Increase in some cost items 3rd 3rd Quarter due to the weak yen and Quarter 3rd Quarter （JPY Bn） Diff. y/y ratio (Oct-Dec)(1) Diff. y/y ratio service enhancements. We FY FY MAR/16 MAR/15 will maintain cost reduction Fuel 223.0 180.7 ▲42.3 ▲19.0% 58.

  13. Slide 13: Impact of Fuel and FX Markets

    Impact of Fuel and FX Markets Hedging Ratio of Fuel Costs* Transition of Fuel Cost by Factors (As of End of 3rd Quarter FY Mar/16) (JPY Bn) *Approximately 250 100% 90% 3rd Quarter Fuel 3rd Quarter Fuel FX FY MAR/15 Market FY MAR/16 80% 220 Volume increase/ 190 Hedging etc. 60% ▲86.2 223.0 FX +23.4 4

  14. Slide 14: Major Balance Sheet Items

    Major Balance Sheet Items Consolidated Balance Sheet Summary as of end of 3rd Quarter FY Mar/16 End of FY End of 3rd Quarter (JPY Bn) Mar/15 FY Mar/16 difference  The balance of interest- 2015/3/31 2015/12/31 bearing debt decreased by 20.7 billion yen to 79.8 Total Assets 1,473.3 1,545.7 +72.4 bill

  15. Slide 15: Major Cash Flow Items

    Major Cash Flow Items （JPY Bn） 3rd Quarter FY Mar/15 3rd Quarter FY Mar/16 Difference Net income before income taxes and non-controlling interests 136.8 172.3 +35.4 Depreciation and Amortization 64.7 65.8 +1.0 Other ▲17.1 ▲14.1 +3.0 Cash Flow from Operating Activities 184.4 223.9 +39.5 Capital Expen

  16. Slide 16: Fly into tomorrow.

    Fly into tomorrow. Finance, Japan Airlines

  17. Slide 17: 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 FY Mar/16 FY Mar/16 FY Mar/15 FY Mar/16 FY Mar/15 FY Mar/16 (%) Difference 3rd Quarter Difference (‘000 passengers) Difference 3rd Quarter Difference 3rd Quarter

  18. Slide 18: Supplemental Reference: Number of Aircraft in Service as of December 2015

    《Supplemental Reference》 Number of Aircraft in Service as of December 2015 End of Mar/15 End of 3rd Quarter FY Mar/16 2015/3/31 2015/12/31 Increase/ decrease Owned Leased Total Owned Leased Total Boeing 777-200 13 0 13 12 0 12 ▲1 Large Size Boeing 777-200ER 11 0 11 11 0 11 - Boeing 777-300 7 0 7 5 0

  19. Slide 19: Supplemental Reference: FY2015 Earnings Forecast (Consolidated)

    《Supplemental Reference》 FY2015 Earnings Forecast（Consolidated） FY Mar/15 FY Mar/16 Forecast for (JPY Bn） FY Mar/16 Result Forecast Operating Revenue 1,344.7 1,347.0 ASK* Int’l +1.5% Doms. ▲1.1% Operating Expense 1,165.0 1,143.0 ASK Total +0.4% Operating Profit 179.6 204.0 RPK* Int’l +6.7% Operating

  20. Slide 20: This contents contains descriptions of the future expectations, outlooks, objectives and plans etc. of

    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 created by the

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