Japan Airlines Co., Ltd. · TSE:9201

Japan Airlines — FY2013 Earnings Presentation

29 slides from Japan Airlines's earnings presentation, Apr 30, 2014

  1. Slide 1: Mar/2014 (FY2013) Results

    Mar/2014 (FY2013) Results 30 April, 2014 Yoshiharu Ueki, President Norikazu Saito, Senior Managing Executive Officer

  2. Slide 2: Overview of Full-Year Mar/2014 (FY2013) Results

    Overview of Full-Year Mar/2014 (FY2013) Results Operating Revenue Operating Profit （JPY Bn) （JPY Bn) Operating Profit Margin 1,309.3 200 195.2 20% 1,300 1,238.8 ＋5.7% 166.7 16% 150 15.8% 12% 12.7% 1,000 100 8% Mar/2013 Full-Year Mar/2014 Full-year Mar/2013 Full-year Mar/2014 Full-year  Though we re

  3. Slide 3: Upward Revision of Operating Profit Mar/2014

    Upward Revision of Operating Profit Mar/2014 (JPY：Bn) 166.7 158.0 155.0 140.0 FY13 Initial FY13 Q2 FY13 Q3 Result Forecast Forecast Forecast  We initially forecast an operating profit of 140 billion yen, but by steadily accumulating profit, we achieved an operating profit of 166.7 billion yen for t

  4. Slide 4: Forecast Overview of Full-Year Mar/2015 (FY2014)

    Forecast Overview of Full-Year Mar/2015 (FY2014) Operating Revenue Operating Profit （JPY Bn) （JPY Bn) Operating Profit Margin 20% 1,400 1,350.0 200 1,309.3 ＋3.1% 166.7 16% 1,200 150 140.0 12% 12.7% 10.4% 1,000 100 8% Mar/2014 Full-Year Mar/2015 Full-Year Mar/2014 Full-Year Mar/2015 Full-Year  In fi

  5. Slide 5: Dividend for Mar/2014

    Dividend for Mar/2014  DPS for Mar/2014 based on our financial results 160.00JPY 147.00JPY Increase 2014/1/31 Announced forecast Mar/2014 (JPY Bn) Mar/2013 Result New Announced on Dividend Calculation Announcement 2014/1/31 Policy(1) Consolidated Net Income 171.6 JPY Bn 166.2 JPY Bn 148.0 JPY Bn Ap

  6. Slide 6: Positioning of Each Fiscal Year

    Positioning of Each Fiscal Year Steadily Achieve Our Management Targets to Realize Growth from FY2015 Review Future Plan FY2012-2013 FY2014 FY2015-2016 A period that our ability to execute the high-profitability A period of establishing a firm was tested A period to achieve Management business found

  7. Slide 7: Mar/2014 (FY2013) Results Details

    Mar/2014 (FY2013) Results Norikazu Saito, Senior Managing Executive Officer Details

  8. Slide 8: Overview of Consolidated Financial Results

    Overview of Consolidated Financial Results Consolidated Financial Results 4Q (JPY Bn) Mar/2013 Mar/2014 y/y (Jan-Mar) y/y  Operating revenue Mar/2014(1) reached 1,309.3 billion Revenue 1,238.8 1,309.3 +5.7% 319.4 +7.6% yen,+5.7% year-on-year. Air Transportation Segment 1,113.7 1,166.6 +4.8% 283.0 +

  9. Slide 9: Changes in Operating Profit

    Changes in Operating Profit Mar/2014(FY2013) ASK y/y： +2.6% RPK y/y： +3.7% ▲28.4 Bn （JPY：Bn） (▲14.6%) Other Revenue Fuel Operation Revenue Int’l Domestic Coupled Passenger Cargo & Mail +30.3 ▲37.0 Coupled Passenger Cost Cost +7.0 +30.9 +2.1 ▲6.2 ▲5.1 Other Cost ▲50.5 195.2 +11.6% ▲15.0% +0.5% +8.3%

  10. Slide 10: Impact From Currency Market

    Impact From Currency Market Breakdown of the Impact on Our Operating Profit （JPY：Bn） Forex Impact Increased Other Profit ▲45.0 Bn +16.5 Bn Expenses Revenue （Excl. Fuel） +22.5 ▲19.3 Other Other Fuel Revenue Expenses 195.2 ▲48.2 +48.0 ▲31.5 166.7 150.2 Mar/2013 Full-Year Mar/2014 Full-Year （82.4JPY/US

  11. Slide 11: International Passenger Operations (Operating Results)

    International Passenger Operations (Operating Results) Mar/2014(FY2013) Mar/2013 Mar/2014 % y/y 4Q(Jan-Mar) % y/y  Passenger revenue was 437.5 Mar/2014(1) billion yen, +7.6% year-on-year. Passenger Revenue (JPY Bn) 406.6 437.5 +7.6% 106.2 +8.1%  The load factor was 76.5% ASK (MN seat km) 44,745 46

  12. Slide 12: International Passenger Operations (Operating Results)

    International Passenger Operations (Operating Results) Mar/2014(FY2013)  Robust demand on European and South East Asia routes （JPY：Bn） Load Factor +30.9 Bn EUR routes 78.3%(+1.4% vspy) (+7.6%) SE Asia routes 76.1%(+1.7% vspy) 437.5  Increase of inbound passengers 9.0 from overseas Increase of reve

  13. Slide 13: Domestic Passenger Operations (Operating Results)

    Domestic Passenger Operations (Operating Results) Mar/2014(FY2013) 4Q (Jan-Mar)  Passenger revenue was Mar/2013 Mar/2014 % y/y % y/y Mar/2014(1) 487.4 billion yen, +0.5% Passenger year-on-year. Revenue 485.2 487.4 +0.5% 112.4 +0.7% (JPY Bn)  Unit price was ▲3.4% year- ASK (MN seat km) 36,443 37,08

  14. Slide 14: Domestic Passenger Operations (Operating Results)

    Domestic Passenger Operations (Operating Results) Mar/2014(FY2013) （JPY：Bn）  Robust demand of group passengers +2.1 Bn to boost demand (+0.5%) -Inbound passengers from regional areas in Japan to Tokyo metropolitan area due 485.2 487.4 to Tokyo Disney Resort® 30th Anniversary -The Sengu Ceremony of

  15. Slide 15: Major Operating Expense Items

    Major Operating Expense Items Breakdown of Operating Expenses 4Q (Jan-Mar) （JPY Bn） Mar/2013 Mar/2014 % y/y % y/y Mar/2014(1) Fuel 246.3 283.3 +15.0% 71.0 +16.9% Landing fees and other rent 75.1 80.2 +6.7% 19.3 +4.5% Maintenance 30.4 41.1 +35.2% 9.4 +38.7% Sales Commissions (Air Transport) 20.3 22.5

  16. Slide 16: Major Balance Sheet Items

    Major Balance Sheet Items Consolidated Balance Sheet Summary as of Mar/2014 End of FY2012 End of FY2013 (JPY Bn) difference 2013/3/31 2014/3/31  Shareholders' equity Total Assets 1,216.6 1,340.1 +123.5 ratio increased by 5.1pt Cash and Deposits 347.9 368.7 +20.7 to 51.5% Balance of Interest-bearing

  17. Slide 17: Major Cash Flow Items

    Major Cash Flow Items End of FY2012 End of FY2013 (JPY Bn) Difference 2013/3/31 2014/3/31 Net income before income taxes and minority interests 190.4 160.0 ▲30.4 Depreciation 81.0 82.7 +1.7 Other ▲6.6 5.1 +11.8 Cash Flow from Operating Activities 264.8 247.9 ▲16.9 Capital Expenditure (1) ▲121.8 ▲ 16

  18. Slide 18: Earnings Forecast for Mar/2015 (FY2014, Consolidated)

    Earnings Forecast for Mar/2015 (FY2014,Consolidated) Mar/2014 Mar/2015 (JPY Bn) Difference Result Forecast Mar/2014 Mar/2015 Result Forecast Operating Revenue 1,309.3 1,350.0 +40.6 ASK* Int’l +3.3% +4.9% Operating Expense 1,142.5 1,210.0 +67.4 Doms +1.8% ▲2.1% Operating Profit 166.7 140.0 ▲26.7 RPK*

  19. Slide 19: Changes in Operating Profit/ Forecast Mar/2015

    Changes in Operating Profit/ Forecast Mar/2015 ASK y/y： +1.8% RPK y/y ： +1.3% ▲26.7 Bn (▲16.1%) （JPY：Bn） Other Revenue Fuel Int’l Domestic +25.5 ▲32.6 Passenger Passenger Cargo & Mail Other Cost (Excl. Fuel) +13.4 ▲0.4 +2.0 166.7 ▲34.8 ▲0.1% +2.3% +8.9% ▲11.5% +3.1% 140.0 ▲4.1% Mar/2014 Full-Year Ma

  20. Slide 20: Impact From Currency Market Forecast Mar/2015

    Impact From Currency Market Forecast Mar/2015 have impact of ▲17.5 billion yen on profitability FOREX to為替影響により▲185億円の収支影響を見込む Mar/2014 2013年度 Mar/2015 2014年度 Result 実績 Forecast 計画 為替（円/USD） FX（JPY/USD） 99.9 107 （JPY：Bn） ▲26.7 Bn Other Other Revenue Expenses Revenue Fuel +31.8 ▲41.0 Expenses 166.7 2

  21. Slide 21: Mar/2015 Earnings Forecast (Consolidated Balance Sheet / Cash Flow)

    Mar/2015 Earnings Forecast (Consolidated Balance Sheet / Cash Flow) Consolidated Balance Sheet Mar/2014 Mar/2015 （JPY:Bn） Difference Result Forecast Total Assets 1,340.1 1,402.0 +61.8 Interest-bearing Debt 134.2 101.0 ▲33.2 Shareholders' Equity 690.2 744.0 +53.7 Shareholders' Equity Ratio (%) 51.5%

  22. Slide 22: Supplemental References

    SUPPLEMENTAL REFERENCES

  23. Slide 23: 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 (%) FY2012 FY2013 y/y 4Q FY2013 y/y (‘000) FY2012 FY2013 y/y 4Q FY2013 y/y Trans Pacific 34.0% 34.0% +0.0pt 33.5% +0.5pt Trans Pacific 1,692 1,775 +4.9% 453 +7.8

  24. Slide 24: Supplemental Reference: Number of Aircraft in Service

    《Supplemental Reference》 Number of Aircraft in Service Mar/2014 End of Mar/2013 End of Mar/2014 Difference Owned Leased Total Owned Leased Total Boeing 777-200 15 0 15 15 0 15 -- 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

  25. Slide 25: Supplemental Reference: Impact from Fuel and Currency Markets

    《Supplemental Reference》 Impact from Fuel and Currency Markets Mar/2015 Sensitivity for Fuel Costs 1 Hedging Ratio for Fuel Costs (As of End of Mar/2014) (Without Hedging) 100% Effect on Fuels (year) Approx 80% 80% Crude Oil 2.3 Bn JPY (Change in 1 Per Year #REF! Fuel #REF! FX USD/bbl） 60% FX Approx

  26. Slide 26: FY14 Earnings Forecast: International Passenger Operations

    《Supplemental Reference》 FY14 Earnings Forecast（ Air transportation Segment ） International Passenger Operations y/y （%） End of Mar/2014 End of Mar/2015 Result Forecast 1H 2H (Forecast) (Forecast) Passenger Revenue (JPY Bn) 437.5 +3.1% +3.4% +2.8% ASK (MN seat km) 46,235 +4.9% +4.8% +4.9% RPK (MN pa

  27. Slide 27: FY14 Earnings Forecast: Domestic Passenger Operations

    《Supplemental Reference》 FY14 Earnings Forecast（ Air transportation Segment ） Domestic Passenger Operations y/y （%） End of Mar/2014 End of Mar/2015 Result Forecast 1H 2H (Forecast) (Forecast) Passenger Revenue (JPY Bn) 487.4 ▲0.0% ▲1.4% +1.4% ASK (MN seat km) 37,084 ▲2.1% ▲3.9% ▲0.1% RPK (MN passeng

  28. Slide 28: Contact: Finance, Japan Airlines

    Contact: Finance, Japan Airlines +81-3-5460-3068

  29. Slide 29: 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

Japan Airlines — FY2013 Earnings Presentation on 6ix