Japan Airlines Co., Ltd. · TSE:9201
Japan Airlines — Q2 FY3/2015 Earnings Presentation
24 slides from Japan Airlines's earnings presentation, Oct 31, 2014
Slide 1: Financial Results 2nd Quarter Mar / 2015 (FY2014)
JAPAN AIRLINES Financial Results 2nd Quarter Mar / 2015 (FY2014) October 31, 2014 Yoshiharu Ueki, President Norikazu Saito, Director, Senior Managing Executive Officer
Slide 2: Contents
Contents ©) JAPAN AIRLINES OVERVIEW OF 187 HALF FY3/15 FINANCIAL RESULTS REVISED CONSOLIDATED FINANCIAL FORECAST FOR FY3/15 PLAN DETAILS OF 187 HALF FY3/15 (1H FY14) FINANCIAL RESULTS _Cont PROGRESS OF MEDIUM TERM MANAGEMENT SUPPLEMENTAL REFERENCES
Slide 3: Overview of 2nd Quarter FY3/15 Financial Results
Overview of 2nd Quarter FY3/15 Financial Results Operating Revenue Operating Profit Operating (JPY Bn) (JPY Bn) Profit Margin 110 700 14.5% 683.7 13.6% 15% 13% 659.3 ＋3.7% 90 95.8 92.8 11% 650 ▲2.9 Bn 9% 70 7% 50 5% 600 1H FY3/14 1H FY3/14 1H FY3/15 1H FY3/15 Operating profit was 92.8 billion. How
Slide 4: Revised Consolidated Financial Forecast for FY3/15
Revised Consolidated Financial Forecast for FY3/15 Revised Operating Profit Forecast Operating Profit Margin Operating Profit Margin Revised our Forecast based on the Result of 1H and (JPY Bn) 10.4% 11.8% change in Fuel market. 175 158.0 Operating Profit: 158.0 JPY Bn, OPM 11.8% 150 140.0 +18Bn
Slide 5: Progress of Medium Term Management Plan
Progress of Medium Term Management Plan Product and Service Enhancement International The first Japanese carrier to win SKYTRAX’s Best Business Class December 2014～Narita=Frankfurt Airline Seat Award January 2015～Narita=New York (JL004/JL003) Rolled out on London, New York, Paris, Los Angeles,
Slide 6: Progress of Medium Term Management Plan
Progress of Medium Term Management Plan Product and Service Enhancement For Our Customer Satisfaction Domestic In 2014 JCSI(*) survey, our international flights took 1st place for Word of Mouth for the first time. Took 1st place for Newly configured aircraft “JAL SKY NEXT” Customer Loyalty for t
Slide 7: Details of Financial Results 2nd Quarter Mar / 2015 (FY2014)
第2四半期業績 詳細 Details of Financial Results 2nd Quarter Mar / 2015 (FY2014) Norikazu Saito Director, Senior Managing Executive Officer
Slide 8: Consolidated Financial Results
Consolidated Financial Results Consolidated Financial Results 2nd Quarter FY3/15 2nd Quarter (JPY Bn) 1H FY3/14 1H FY3/15 y/y (Jul-Sep) (1) y/y Revenue: 683.7 Bn JPY, Revenue 659.3 683.7 +3.7% 376.6 +3.1% Air Transportation Segment 589.0 609.3 +3.4% 335.1 +2.8% y/y +3.7% Operating Expense 563.4 59
Slide 9: Changes of Operating Profit
Changes of Operating Profit 2nd Quarter FY3/15 ▲2.9Bn （JPY Bn） Impact From Currency Market (▲3.1%) ▲4.8Bn Revenue ＋2.7Bn ASK y/y： +0.4% Cost ▲7.5Bn Sales of Expenses of RPK y/y： +2.4% travel travel Fuel ▲5.1Bn Agency, Agency, Ex. Fuel ▲2.3Bn Incidental Incidental Other Business(※) Business(※) Fuel I
Slide 10: International Passenger Operations (Operating Results)
International Passenger Operations (Operating Results) International Passenger 2nd Quarter 1H FY3/14 1H FY3/15 y/y y/y International (Jul-Sep) (1) Passenger Passenger Revenue 222.2 233.9 +5.3% 126.7 +2.8% (JPY Bn) Revenue: 233.9 Bn JPY ASK (MN seat km) 23,089 23,988 +3.9% 12,260 +3.6% y/y +5.3% RP
Slide 11: International Passenger Operations (Change in Revenue)
International Passenger Operations (Change in Revenue) 1st HALF FY3/15 (Bn JPY) Increased frequency on +11.7Bn Narita - New York / Jakarta (+5.3%) routes, started Haneda - 233.9 Ho Chi Minh City service +2.8 Expansion of JAL SKY +8.9 ・Strong inbound SUITE 777 / 767 services 222.2 demand and outb
Slide 12: Domestic Passenger Operations (Operating Results)
Domestic Passenger Operations (Operating Results) Domestic Passenger 2nd Quarter As ASK was ▲3.8% 1H FY3/14 1H FY3/15 y/y y/y (Jul-Sep) (1) year-on-year, RPK Passenger Revenue increased by 1.2% 251.7 248.1 ▲1.4% 142.4 ▲0.3% and L/F was up (JPY Bn) +3.2pt year-on-year ASK (MN seat km) 19,229 18,490
Slide 13: Domestic Passenger Operations (Change in Revenue)
Domestic Passenger Operations (Change in Revenue) 1st HALF FY3/15 (Bn JPY) ▲3.5Bn (▲1.4%) Change in customer mix 251.7 ・Increase of the percentage of passengers using promotional fares such as “Tokubin 248.1 Discount 21” ▲6.2 +2.7 Implementation of various measures ・Customer ・Increase of passeng
Slide 14: Major Operating Expense Items
Major Operating Expense Items Operating Expenses 2nd Of the total increase in (JPY Bn) 1H FY3/14 1H FY3/15 difference % y/y Quarter difference operating expenses, (Jul-Sep) 7.5 billion yen was Fuel 141.1 151.4 +10.3 +7.3% 77.8 +4.9 attributed to the weaker yen. Landing fees 40.7 40.8 +0.1 +0.3% 20
Slide 15: Major Balance Sheet Items
Major Balance Sheet Items Consolidated Balance Sheet Summary as of End of 1st Half FY3/15 End of FY2013 End of 1H FY3/15 The balance of interest- (JPY Bn) difference 2014/3/31 2014/9/30 bearing debt declined by 21.2 billion yen to 112.9 Total Assets 1,340.1 1,400.0 +59.8 billion yen after repaying
Slide 16: FY3/15 Earnings Forecast (Consolidated)
FY3/15 Earnings Forecast (Consolidated) FY3/14 FY3/15 FY3/15 FY3/15 FY3/15 (JPY Bn) difference New Results New Forecast Prev. Forecast Prev. Forecast Forecast Revenue 1,309.3 1,340.0 1,350.0 ▲10.0 ASK Int’l 103.7 104.9 Operating Doms 98.4 97.9 Expense 1,142.5 1,182.0 1,210.0 ▲28.0 RPK Int’l 103.2 10
Slide 17: Fly into tomorrow.
Fly into tomorrow. Contact: Finance, Japan Airlines +81-3-5460-3068
Slide 18: Supplemental Reference: FY3/15 Earnings Forecast (Air Transportation Segment)
《Supplemental Reference》 FY3/15 Earnings Forecast（ Air transportation Segment ） International Domestic y/y (%) 1H 2H FY3/15 1H 2H FY3/15 (Except Load (Result) (Forecast) (Forecast) (Result) (Forecast) (Forecast) Factor) ASK +3.9% +3.6% +3.7% ▲3.8% +0.8% ▲1.6% RPK +3.3% +3.0% +3.2% +1.2% +1.0% +1.1%
Slide 19: Supplemental Reference: Major Cash Flow Items
《Supplemental Reference》 Major Cash Flow Items (JPY Bn) 1H FY3/14 1H FY3/15 Difference Net income before income taxes and minority interests 90.8 91.8 +0.9 Depreciation 40.5 42.6 +2.0 Other 6.8 7.2 +0.3 Cash Flow from Operating Activities 138.3 141.7 +3.4 Capital Expenditure (1) ▲56.2 ▲77.2 ▲20.9 Ot
Slide 20: Supplemental Reference: FY3/15 Earnings Forecast (Balance Sheets / Cash Flow)
《Supplemental Reference》 FY3/15 Earnings Forecast (Consolidated Balance Sheets / Cash Flow) Consolidated Balance Sheet (JPY Bn) End of FY3/14 Result FY3/15 New Forecast Previous Forecast difference Total Assets 1,340.1 1,461.0 1,402.0 +59.0 Interest-bearing Debt 134.2 101.0 101.0 +0 Shareholders' Eq
Slide 21: Supplemental Reference: Impact from Fuel and Currency Markets
《Supplemental Reference》 Impact from Fuel and Currency Markets Impact on Fuel Costs Hedging Ratio for Fuel Costs (As of End of 2Q FY3/15) （JPY Bn） Fuel loaded, 90% Approx.85% 160 deferred gains or 80% losses on hedges, etc. Fuel FX Market +3.8 70% Fx 150 +1.3 60% Approx. Approx. 45% +5.1 50% 40% 140
Slide 22: Supplemental Reference: Revenue of International Routes by Geographical Segment
《Supplemental Reference》 Revenue of International Routes by Geographical segment Passenger Revenue (% of the whole int’l revenue) Passengers (%) 1H FY3/14 1H FY3/15 Y/Y 2Q FY3/15 Y/Y (‘000) 1H FY3/14 1H FY3/15 Y/Y 2Q FY3/15 Y/Y Trans Pacific 34.5% 36.5% +2.0pt 38.0% +2.5pt Trans Pacific 870 951 +9.3
Slide 23: Supplemental Reference: Number of Aircraft in Service
《Supplemental Reference》 Number of Aircraft in Service End of Mar/2014 End of Sep/2014 2014/3/31 2014/9/30 Changes 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 To
Slide 24: Forward-looking statements 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 created by the