JAL Group s s Strategies and Account Settlement for FY2003

Transcription

1 JAL Group s s Strategies and Account Settlement for FY2003 (Analyst Briefing) May 7, 2004 Japan Airlines System Corporation 0 JAL 2004

2 Table of contents Part 1 P1 Part 2 Outline of Accout Settlement for FY2003 P2. Forecast of Business Results for FY2004 P15 Outline of the Consolidated Financial Statements P3 Assumptions of the Forecast for FY2004 P16 Efforts for Cost Reduction (FY2004) P4 Forecast of Business Results for FY2004(Consolidated) P17 Efforts for Cost Reduction P5 Forecast of Business Results for FY2004(by Segment) P18 Efforts for Revenue Increase FY2004 P6 Capex & Depreciation P19 P7 Interest Bearing Debt P20 P8 P21 P9 International Passenger -1- P10 International Passenger -2- P11 P24 P12 P13 P26 P14 P22 P23 P25 P27 P28 P29 P30 P31 1 JAL 2004

3 <PART 1>. Outline of Account Settlement for FY JAL 2004

4 I. Outline of Account Settlement for FY2003 Outline of the Consolidated Financial Statements Operating Revenue (International Passenger Domestic Passenger International Cargo Others Operating Income Ordinary Income Net Income 3 JAL 2004

5 . Efforts for Cost Reduction (FY2004) 4 JAL 2004

6 . Efforts for Cost Reduction FY2004 Efforts or Cost Reduction Cost Reduction through Integration Effects 25.0 billion N.B. excluding Revenue Increase through Integration Effects Reduction of Personnel Expenses by introduction of new Retirement Benefit Scheme 32.0 billion* * compared with FY JAL 2004

7 . Efforts for Revenue Increase (FY2004) 6 JAL 2004

8 . Efforts for Revenue Increase FY2004 New FFP Strategy More attractive Mileage Program Increase of No. of JAL Card members JAL Mileage Bank No. of member: approx million Suica No. of issue: approx. 8.3 million Increase of Passengers JAL Card No. of member: approx. 1.2 million View Card No. of member: approx. 2.6million (N.B.) : All figures are as of March 31, 2004 First step of the new alliance between Railways & Airline 7 JAL 2004

9 . Efforts for Revenue Increase FY2004 Domestic Passenger -1- JAL Group's No. of Domestic Passengers in FY2003 (y.o.y.) 1Q yield* +0.1% 2Q yield* +3.0% 3Q yield* +10.8% 4Q yield* +13.6% Expansion of network through Integration in April, 2003 Sales Strategy focused on individual pax Ratio of individual pax vs. total pax Attained the target ratio of 63% in FY2003 Yield in FY2003 increased +6.7% ** * yield: based on RPK ** Figure of Apr. 2004: flash report Increase in Revenue 39.5 billion in FY JAL 2004

10 . Efforts for Revenue Increase FY2004 Domestic Passenger -2- Clear-cut User-friendly Affordable deluxe seats No. of seats Super seat: approx. 1,000 Triple Class-J : approx. 3,000 FY2004 Unification of flights to JAL Promotion of E-business Introduction of Class-J Target Revenue increase in FY billion yen (vs.fy2003 Enhancement of Individual Pax Ratio Increase of average yield based on no. of pax Target : FY2004 up 64% y/y Target : FY2004 up 3.4% y/y 9 JAL 2004

11 . Efforts for Revenue Increase FY2004 International Passenger -1- Assumed Demand FY04 assumed Demand (vs.fy03 FY02 Demand vs.fy03) Target Revenue Increase for FY billion yen (vs.fy billion yen (vs.fy2002) 10 JAL 2004

12 . Efforts for Revenue Increase FY2004 International Passenger -2- Strategies by route Pacific routes Maintain proper supply Maximize profit through high L/F & high yield Europe routes Expand network in response to active demand Business Sales strategy Beef-up Direct Marketing Shell-flat seats:introducing on 7 trunk routes Sight-seeing China routes Expand China routes anticipating future growth Expand the largest network of Japan-China routes Southeast Asia routes Reinforce optimal route operation matching with demand FLY! JAL! Asia FLY!JAL!Silver-wedding Trip 11 JAL 2004

13 . Efforts for Revenue Increase FY2004 International Cargo Trend of International Cargo Tonnage for FY2003 Active Demand for International Cargo FY2004 Beef-up on China routes Introduction of F Exploitation of Chubu International Airport Target Revenue Increase for FY2004: 9 billion yen vs. FY03) Offering high-value added products J-Products Revenue increase by satisfying demand FY2004 up 1.5% y/y 12 JAL 2004

14 . Goal of Operating Income (FY2004) 13 JAL 2004

15 . Forecast of Business Results for FY2004 Forecast of Business Results for FY2004 Billion yen Operating Income Resumption of dividend Cost Reduction New Retirement Benefit Scheme 32 billion Integration Effects 25 billion Revenue Increase Domestic Passenger 21billion International Passenger 145 billion International Cargo 9 billion 14 JAL 2004

16 Part JAL 2004

17 . Forecast of Business Results for FY2004 Assumptions of the Forecast for FY JAL 2004

18 . Forecast of Business Results for FY2004 Forecast of Business Results for FY2004(Consolidated) JAL 2004

19 . Forecast of Business Results for FY2004 Forecast of Business Results for FY2004 by Segment The credit card and leasing business, the retailing and distribution business, previously included "Air Transport-Related Business", are combined together with the hotel and resort operations and are to be presented as part of "Other Business" JAL 2004

20 . Forecast of Business Results for FY2004 Capital Investment & Depreciation No.of Aircraft introduced JAL 2004

21 . Forecast of Business Results for FY2004 Interest-bearing Debts JAL 2004

22 Part 2 21 JAL 2004

23 . Account Settlement for FY2004 Gist of the Consolidated Financial Statements 22 JAL 2004

24 . Account Settlement for FY2004 Revenues & Operating Income by Segment Operating Revenue *1 The credit card and leasing business, the retailing and distribution business, previously included "Air Transport- Related Business", are combined together with the hotel and resort operations and are to be presented as part of "Other Business". Airline-related Business in FY2002 includes the credit card and leasing business and the retailing and distribution business. JAS's other business in FY2002 is added to Travel Services Business. *2 Prior to consolidation adjustments 23 JAL 2004

25 . Account Settlement for FY2004 Gist of the results of Air Transportation Segment 24 JAL 2004

26 . Account Settlement for FY2004 Results of Domestic Passenger L/F FY % FY % Domestic Passenger Revenue 668.8bln Yr/Yr difference +39.5bln 25 JAL 2004

27 . Account Settlement for FY2004 Results of International Passenger L/F FY % FY % International Passenger Revenue 549.7bln Yr/Yr difference 118.7bln Effects of Forex 0.7% 26 JAL 2004

28 . Account Settlement for FY2004 Demand & Supply of International Passengers by route(yr/yr) 27 JAL 2004

29 . Account Settlement for FY2004 Result of International Cargo International Cargo Revenue 153.0bln Yr/Yr difference4.2bln International Cargo Tonnage by route (yr/yr %) On a Tonnage base Pacific Europe Effects of Forex 1.9% Southeast Asian & Others 28 JAL 2004

30 . Account Settlement for FY2004 Gist of the Breakdown of Operating Costs Air transportation Segments *1Add-up of JAL/JAS without Adjustment 29 JAL 2004

31 . Account Settlement for FY2004 Fuel & FOREX Air Transportation Segment Fuel Averaged Fuel Price SIN Kerosene FY03 $33.0/bbl (FY02 $30.5/bbl) Hedge Ratio for FY03 about 50 FOREX 30 JAL 2004

32 . Account Settlement for FY2004 Results of Main Subsidiaries before consolidation adjustments Airline-related Business Segment Travel Services Segment Others Segment! JALUX 31 JAL 2004

33 <Contact Address> Japan Airlines System Corporation, IR Desk TEL: (03) FAX: (03) Office Hour:Weekday9: Address: , Higashi-Shinagawa, Shinagawa-ku, Tokyo (N.B.) Please refer to the Financial Information ( Kessan Tanshin, Yukashoken Hokokusyo etc.) 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 Group s Financial Statements for FY2003. The copyright of this document belongs Japan Airlines System Corporation. You can watch this presentation on our Homepage (Sorry! Only in Japanese). Please refer to the following URL: 32 JAL 2004