153 The Briefing on JAL Group s Semiannual Account Settlement of FY2002 November 18, 2002 Japan Airlines System Corporation
Table of Contents 1 JAL 2002
Agenda for today. Semiannual Account Settlement of JAL in FY2002. Semiannual Account Settlement of JAS in FY2002. 2002 JAL Forecast of Business Results of JAL Group in FY2002 2 JAL 2002
. Semiannual Account Settlement of JAL in FY2002 3 JAL 2002
Gist of the Consolidated Financial Statements (Unit:100mil yen) Operating Revenue 20029 8,581 Year on Year (yr/yr) 1.5% Difference of Non- & Consolidated 2,222 Operating Income 285 26.7% 94 Ordinary Income 375 +57.4% 91 Net Income 336 +105.4% 24 4 JAL 2002
Gist of Consolidated Statements of Cash Flows 20019 20029 Net Cash provided by Operating ativities Net Cash used in investing Activities Net Cash provided by financing activities 260 Net (decrease) increase in Cash and Equivalents FH01(A) 568 316 510 970 Cash and cash equivalents at end of Year FH02(B) 1,053 142 1,059 155 1,533 Difference (B)-(A) 484 174 549 105 562 5 JAL 2002
Unit:100mil yen Revenues & Operating Income by Segment Hotel & Resort Travel Services Aviation -related Air Transportation Unit:100mil yen Hotel & Resort Travel Services Aviation -related Air Transportation Operating Revenue Operating Income 6 JAL 2002
Gist of the results of Air Transportation Segment Unit:100mil yen Operating Revenue Unit:100mil yen Operating Income(Loss) Operating Revenue/year on year/operating income/year on year/ Net income/ year on year 7 JAL 2002
Associated Businesses Others 10% International Cargo Breakdown of the Revenues of Air Transportation Segment 7% 5% FH01 53% International Passenger Associated Businesses Others 11% International Cargo FH02 7% 6% 51% International Passenger 25% Domestic Passenger 25% Domestic Passenger 8 JAL 2002
Results of International Passenger International Passenger Revenue 3,435 (343.5 yen) 109 Yr/yr (10.9bln yen) yr/yr Revenue RPK ASK Yield ( (Exc Forex) JAL*(3% IP 5% 5% +2% +% JAA 6% 9% 1% +% +% Total 3% 5% 5% +% +% 9
Number of International Passengers by routes(yr/yr) (%) L/F FH02 72.4 FH01 72.7 Continental/Hawaii/Europe/Southeast Asia/ Oceania/Guam/China/Korean/Taiwan 10 JAL 2002
Results of Domestic Passenger Domestic Passenger Revenue 1,672 167.2 bln yen 15 yr/yr 1.5 bln yen yr/yr Revenue JAL( ) DP JEX JTA J-AIR Total Revenue 1% 9% 0% +34% 1% RPK +1% 6% +1% +33% +1% ASK 0% 8% 1% +22% 0% Yield 2% 2% 1% 0% 2% 11 JAL 2002
Results of International Cargo yr/yr Revenue Yield Yield (Exc Forex) International Cargo Tonnage by routes (year on year) On a Tonnage basis JAA Total JAL ( IC +13% +9% +13% RCTK +11% +37% +12% * +2% 21% +% * Pacific ( +1% 21% 0% * Europe Southeast Asia & Others International Cargo Revenue 733 73.3 bln yen 85 yr/yr 8.5 bln yen 12 JAL 2002
Breakdown of the Operating Expenses of Air Transportation Segment 13 JAL 2002
SIN kerosene US$/bbl Sources:Bloomberg Fuel Hedge Policy Average 5 Hedge rate : About 50% of forecasted consumption amount FH01 US$ 30.0 SH01 US$ 24.5 FH02 US$ 27.5 02 5 1 14 JAL 2002
Effects of Forex on Revenues(Non-Consolidated) Exchange Rate Forex USD EUR HKD FH2001 122.8 108.3 15.7 FH2002 124.5 116.5 15.9 4-9 Average of Company exchange rate for Apr. to Sep. (FH2002 7 Revenues 21 Expenses USA Forex effects (FH2002) +30 Operating Revenues +39 Operating Expenses 8 Income Components of Foreign Currencies Europe Asia, Oceania 4 2 8 3 Unit:100mil yen Others Total 1 1 20 27 15 JAL 2002
* Aviation-related Business Segment * Unit:100mil yen Operating Revenue Operating Income(Loss) Operating Revenue/year on year/operating income/year on year/ Net income/ year on year Unit:100mil yen 16 JAL 2002 Unit:100mil yen
Travel Services Segment Operating Revenue Unit:100mil yen Operating Income(Loss) Operating Revenue/year on year/operating income/year on year/ Net income/ year on year Unit:100mil yen 17 JAL 2002
Hotel & Resort Operations Segment Operating Revenue Unit:100mil yen Unit:100mil yen Operating Income(Loss) Operating Revenue/year on year/operating income/year on year/ Net income/ year on year 18 JAL 2002
Topics of FH2002 4 Opening of the Second Runway at Narita (April) Increase of flights Tokyo Routes (JAL) Shift from KIX to NRT (JAS) Expansion of slots at Haneda (July) JAL Entry into monopolistic routes by rival airlines (JAL) JAS Increase flights on heavy-demand routes (JAS) Alliance WOW Accession to WOW (July), Code-sharing with MU(Sept.) 7 Introduction of Shell Flat Seats JAL CHINA 7 JAL Business CHINA (July) 7 9 JAL,JAS 19 JAL 2002
. Semiannual Account Settlement of JAS in FY2002 20 JAL 2002
Gist of the Consolidated Financial Statements (Unit:100mil yen) Operating Revenue 20029 2,074 Year on year 6.6% Difference of Non- & Consolidated 293 Operating Income 64 53.2% 8 Ordinary Income 63 32.1% 10 Net Income 34 30.1% 6 21 JAL 2002
Gist of Consolidated Statements of Cash Flows 20019 FH01(A) 192 20029 FH02(B) Difference (B)-(A) 248 56 85 208 102 ( 189 11 193 42 169 74 14 144 20 22 JAL 2002
Gist of the results of Air Transportation Segment Unit:100mil yen Operating Revenue Operating Income(Loss) Unit:100mil yen Operating Revenue/year on year/operating income/year on year/ Net income/ year on year 23 JAL 2002
International Cargo Breakdown of the Revenues of Air Transportation Segment FH01 Associated Others Businesses 6% 1% 6% International Passenger 1% Others 1% International Cargo FH02 Associated Businesses 1% 6% 5% International Passenger Domestic Passenger 86% 87% Domestic Passenger 24 JAL 2002
Results of Domestic Passengers Domestic Passenger Revenue 1,630 163 bln yen 81 yr/yr 8.1 yen yr/yr 25 JAL 2002
Breakdown of the Operating Expenses of Air Transportation Segment 26 JAL 2002
CIF US$/bbl Sources: 02 7 Average FH01 US$ 26.5 FH02 US$ 24.6 Hedge rate : About 70% of forecasted consumption amount 27 JAL 2002
Effects of Forex on Revenues(Non-Consolidated) Forex effects (FH2002) 0.7 Operating Revenues +5 Operating Expenses 6 Income Unit:100mil yen FH02 2 Approx.2% of Operating Revenue (Asian currencies) 11 Approx.11% of Operating Expenses (Dollar) Components of Foreign Currencies 28 JAL 2002
. 2002 JAL Forecast for FY2002 (JAL Group) 29 JAL 2002
2002 (yr/yr) Trends of Demand by Segment (FH02/FH01) JAL +JAS 1st Half Results (yr/yr) IP 5% DP 1% IC +16% Aftermath of the incident in Bali 10 7 4 11 1 11/15 Cancellation: OCT:approx 7,000 (0.4 bln yen) NOV: approx 10,000 (as of NOV 15) 30 JAL 2002
2002 Assumptions of the Forecast for FY2002 International Domestic passenger Passenger International Cargo International passenger Domestic Passenger International Cargo demand yield 00 100 Forex Singapore Kerosene) CIF JAPAN) 31 JAL 2002
2002 2002 Forecast for FY2002 (Consolidated) (Unit:100million yen) Operating Revenue International Passenger FY01 FY02 7/15 Forecast (a) 6,325 6,890 FY02 11/15 ) Forecast (b) 20,295 21,170 20,900 6,840 7/15 (b)-(a) 270 Domestic Passenger International Cargo Others Operating Income Ordinary Income(Loss) Net Income (Loss) ROE 6,502 1,376 6,092 10 336 358 6,480 1,460 6,340 6,230 400 300 220 6,320 1,510 170230 240 240 Interest-bearing Debts Operating CF 32 JAL 2002 JAL JAS JAL(consolidated)+JAS(consolidated) 60 20 + +
2002 2002 Forecast for FY2002 (By Business Segment) Business Segment Air Transportation Aviation-related Travel Services Hotel & Resort Consolidated Adjustments Total Operating Revenue Operating Income Net Income (Loss) Unit:100mil yen 33 JAL 2002
2002 Capital Investment Depreciation Unit:100mil yen Unit:100mil yen Forecast 34 JAL 2002
2002 Interest-bearing Debts Unit:100mil yen / 686 68.6bln yen (compared with Mar. 2002) 35 JAL 2002
2002 Progress of the Integration HND=MMBOBOJAS JAL Route Plan 10 HKG 10 JAS System (Reservation etc.) FFP Sales Wholesale FY2002(Oct. 1 HNDOKJ/UBJNGO=FUK Network 10 FY2003 10 10 / FY2004 JAL 4 Implemented 36 JAL 2002
2002 Integration Effects Cost-reduction Effects Reduction of Rents ect. Job Reduction Fleet Reduction Other Reduction Fall in Revenue Airfare Cuts Return of Slots Increase in Revenue Total Integration Effects Additional Cost Increase Net Integration Effects 37 JAL 2002
2002 (Ref.) Fleet Plan for FY2002 Owned 2002.9.30 As of Sep.30, 2002 38 JAL 2002
Contact Address IR Japan Airline System Corporation IR Desk TEL: (03)5769-6097 FAX: (03)5769-6492 Office Hour: 9 30-12 00 13 00-17 108-6024 2-15-1 Address: Shinagawa Intercity, 2-15-1 Konan, Minato-ku, Tokyo 108-6024 URL: http://www.jal.jp 39 JAL 2002
Please refer to the Financial Information ( Kessan Tanshin ) for the precise figures on the account settlement. Any statements in this document, other than those of historical facts, are forward-looking statements about future performance, which are based on management s assumptions and beliefs in light of information currently available, and involve risks and uncertainties. Actual results may differ materially from these forecasts. This document is published as supplemental materials for the Briefing on JAL s Financial Statements for First half Results of FY2002. The copyright of this document belongs Japan Airlines System Corporation. 40 JAL 2002