JAL REPORT 2022
JAL Group Integrated Report
March, 2022

Chapter 1 Foreword

JAL Group Information System

JAL REPORT 2022 ｜Table of Contents

Editorial Policy

You can learn about...

Chapter 1｜Foreword
Our Purpose
Our Strength35

Our Vision
Message from the President

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9

15
17
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19
22
23

(4) JAL Group Code of Conduct(5) Corporate Governance①Corporate Governance System②Management Structure③Outside Directors Speak Out
About the JAL Group

24
25
25
27

①Aircraft②Full Service Carrier (FSC)③LCC(2) Cargo and Mail

(3) Mileage, Lifestyle and Infrastructure①Mileage and Lifestyle②Regions③Air Mobility④Contracted Services(4) DX Strategy(5) Human Resource Strategy
4. Finance Strategy

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59

Chapter 4｜Sustainability

JAL REPORT 2022

External environment, risks and opportunities
that impact our business ■■■Embedding ESG into the management
plan and ESG strategies ■■・JAL Group Corporate Policy・JAL Philosophy

・Company Profile
・History
・Corporate Governance・Medium Term Management Plan
・Organizational Overview
WEB

Accessibility
Prevention of Infectious Diseases
Communities
Route Network Expansion
Promotion of Inbound Tourism
Regional Revitalization
Convenience in Mobility and Daily Life
Disaster Restoration AssistanceCommunity Relations
Governance
Robust Risk Management(strengthening BCM)
Fair Business Practices (compliance)
Disclosure
Responsible Procurement

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95
95
95
96
97
97
98
99
99
101
102
103

Portfolio management for businessrestructuring ■■Investment strategy for intangible assets (DX, etc.) including
human resources and intellectual property ■■Finance strategy to achieve bothresilience and capital efficiency andstrategically allocate resources ■■Solving social issues toward asustainable future ■https://www.jal.com/en/outline/■ Safety and Quality

・Safety Management
・Initiatives to Create a Safe and Secure Society
・Quality Initiatives
https://www.jal.com/en/flight/

4. Financial Data
Evaluation and Analysis of Financial Conditions

5. Other Data
Stock Information
Company Information
Major External Ratings

117
119
127
127
128
128

The JAL website
WEB■ Sustainability

・Sustainability Management
・Integrated Report/ESG Data
・JAL Group Sustainability Initiatives
・JAL Group Initiatives to Achieve the SDGs
WEB

https://www.jal.com/en/sustainability/■ Investor Relations

・About the JAL Group・Stock Information
・IR Library・Financial Highlights
・Monthly Traffic Data
・Business Risks
WEB

https://www.jal.com/en/investor/■ Other MediaKPIs to measure progress towardachievement of initiatives and results ■■Date of publication
August 2022

https://www.jal.com/en/

Offers a comprehensive insight into JAL Group’s business approach,activities in general, IR (Investor Relations) information and sustainability
information.
Forward-looking statements
This report includes forward-looking statements about the JAL Group’sbusinesses and forecasts. These statements are based on our analysis ofexisting information and various trends. Actual results may differ materiallyfrom forecasts set forth in forward-looking statements due to business risks
and uncertainties.
Products, services, events, etc.
Some of the products, services, events, etc. contained in this report havebeen suspended due to extenuating circumstances.
For the latest information, please refer to sources such as the JAL website.
PhotosIn some of the photos in this report, masks are not worn however masks
were only removed for the purposes of the photograph.

・JAL Group Safety ReportWEB

https://www.jal.com/en/flight/report/

・Corporate Governance ReportWEB

https://www.jal.com/en/outline/governance/

・Consolidated Financial Statements
WEB

https://www.jal.com/en/investor/library/finance/

・Consolidated Financial Results
WEB

https://www.jal.com/en/investor/library/information/

About the cover
The low-noise, fuel-efficient Airbus A350, which
can reduce CO 2 emissions by 15% to 25%
compared to conventional aircraft. Following
service entry of 16 A350 aircraft on domestic
routes, we plan to progressively introduce themon international routes from 2023. The JAL
Group is working to reduce CO 2 emissions,which is a pressing issue for airlines, and aims
to achieve net zero CO2 emissions by 2050.

Data Section

1

105
107
111
113
115
116

■Corporate Policy and Company Profile
Corporate governance that disciplines the
direction toward long-term and sustainableenhancement of corporate value ■WEB

Chapter 5｜Data Section
1. Data Highlights
2. ESG Data
3. Business Data
International Route Map
Domestic Route Map
Consolidated Subsidiaries

The following detailed information is also posted
企業サイト内からも下記のon the JAL corporate website.

Sustainability

Sustainability Initiatives
63― Solving Social Issues ―Key Initiatives and Performance Indicators
65(Targets and Performance)
Environment
69
Addressing Climate Change
70
Effective Use of Limited Resources
79
Precaution of Environmental Pollution
81
Noise Reduction
81
Biodiversity Conservation81
People83
Respect for Human Rights
83
Human Resource Development
87
Diversity and Inclusion
89
Workstyle Innovation
91
Wellness
91

Business model for long-term and sustainablevalue creation through our business ■The JAL Group has published JAL REPORT 2022 to inform stakeholders
about our business activity outcomes in the previous financial year, ourstrategies for the future, and to provide an understanding of the Group’s
pursuit of social and economic values, and sustainable growth.
This report has been collated from a wide range of both financial andnonfinancial information that the JAL Group has deemed to be of particularimportance to Group management, all of which is made available on the JAL
website.
Period covered by the report
Primarily April 2021 to March 2022 (FY2021)
Scope of the report
This report covers 199 JAL Group companies, comprising Japan
Airlines Co., Ltd., 144 subsidiaries and 54 affiliates.
Reference guidelines
The International Integrated Reporting Framework issued by the International
Integrated Reporting Council (IIRC) and the Guidance for Collaborative Value
Creation issued by the Ministry of Economy, Trade and Industry were used as
reference in preparing this report. The GRI Standard issued by the Global
Reporting Initiative (GRI) was used as reference for ESG information.

Medium Term Management Plan

37
41
43
46
46
47
49
50

企業サイト
website■ JAL corporate

Strengths and foundations essential tocompetitive advantage ■■33

Chapter 3｜Medium Term Management Plan
1. Strategy-The Big Picture
2. ESG Strategy
3. Business Strategy(1) Passengers

Our long-term vision to create long-term value andvisualize social values to solve social issues ■Other media

The JAL Group Value Creation Story

Chapter 2｜The JAL Group Value Creation Story
1. JAL Group's Value Creation Story
2. JAL Group's Value Creation Process
3. Foundation for Value Creation(1) Safety Charter(2) JAL Philosophy(3) Divisional Profitability Management System

Foreword

In addition to this report, detailed information is available on our corporate website and various booklets for stakeholders.

JAL REPORT 2022
JAL Group Integrated Report
March, 2022TOP

JAL REPORT 2022

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Chapter 1 Foreword

Our Purpose

Our Strength

Our Vision

TOP MESSAGE

Foreword
The JAL Group Value Creation Story

Our Purpose
To Become The World’s
Most Preferred and Valued Airline Group,
Where Many People and Goods Freely Move Around

Medium Term Management Plan
Sustainability

3

JAL REPORT 2022

Safety Charter (excerpt)
Safety: The protection of lives. This is the commitment andbasic foundation of business continuity for the JAL Group.
We take to heart our mission and responsibility as
safety professionals to ensure a safe operation on every
flight with the best of our knowledge, skills and abilities.

TOP

JAL REPORT 2022

Data Section

The JAL Group Will:
Pursue the material and intellectual growth of all
our employees;-Deliver unparalleled service to our customers;-Increase corporate value and contribute to thebetterment of society.

4Chapter 1 Foreword

Our Strength

Our Purpose

Our Vision

TOP MESSAGE

Foreword
The JAL Group Value Creation Story

Our Strength
Three Strengths Cultivatedthrough Challenge and Innovation

Medium Term Management Plan

More than 70 years have passed since Japan Airlines Co., Ltd. wasfounded in 1951 as Japan's first postwar commercial airline. With highgoals, the JAL Group, together with its customers, ventured into theskies of Japan with unwavering dedication and ingenuity. In addition,
all employees study and pass on valuable lessons drawn from the 2010
bankruptcy and accidents and continuously embrace challenge andinnovation.
Our three strengths are assets of the JAL Group for achieving sustainablegrowth. We will continue to align our mental vectors and use our threestrengths to realize JAL Vision 2030.

70 Years of Challenge and Innovation
Contributing to the progress and development of society through air transportation

Operations andServices××

Learning and passing lessons from
accidents and incidents

Challenge andInnovation
Working steadily and creating
innovations to attain high goals

Human
resources
base

Customerbase

Financialbase

The human resource base
was built through concerted
efforts of all employees withawareness of belonging to the
JAL Group team and a sense of
professionalism

A customer base made up ofconnections with all customers
who use the JAL GroupOne of the strongest financial
bases of any airline in theworld, built through steady andstrong management focused on
profitability

Human resources who makeup the workforce, policies andattitudes such as the Corporate
Policy and JAL Philosophy, andknow-how and skills cultivatedover the years

Connections with all customers
who have used the JAL Groupthrough the mileage program,membership organizations andaccumulated data

JAL Group's financial position,
disciplined resource allocationand cost management,
and connections with ourshareholders, investors and otherstakeholders

Data Section

1951: Founding of Japan Airlines (former company)
1959: Birth of the Tsurumaru (Japanese crane) logo
1987: Full privatization
2002: Merger of Japan Airlines and Japan Air System
2006: Establishes the Safety Promotion Center
Introduces a Safety Management System (SMS)
2010: Files petitions for reorganization proceedings
Reorganizes route network and withdraws from the freighter business2011: Establishes a new Corporate Policy and the JAL Philosophy
Introduces the divisional profitability management system and revives the Tsurumaru logo
2012: Relists on the Tokyo Stock Exchange
Enacts the Fundamental Policies of Corporate Governance
2019: Revises the Safety Charter and enacts a new Code of Conduct
2021: Establishes “JAL Vision 2030”

JAL Group’s Three Strengths
Sustainability

Providing unparalleled service
grounded in experience

Lessons andLearning

PHOTOGRAPHY BY SACHIE ABIKO

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Chapter 1 Foreword

Our Purpose

Our Strength

Our Vision

TOP MESSAGE

Foreword
The JAL Group Value Creation Story

Our Vision
JALグループは、大きく時代が動き価値観が変わるなか、「安全・安心」と「サステナビリティ」
を未来への成長のエンジンとして、以下を実現します

Build a society
where everyone
can live safely andwith peace of mind

JAL
Vision2030

Medium Term Management Plan

Safety andPeace of Mind

Sustainability

Build a better future
where everyone canfeel fulfilled andhopeful

多くの人々やさまざまな物が自由に行き交う、心はずむ社会・未来においてSustainability

世界で一番選ばれ、愛されるエアライングループを目指します

Amid significant changes in the world and social values, JAL Vision 2030 paves
the way towards growth, driven by the universal values, “Safety and Peace ofMind” and “Sustainability.”
Data Section

The JAL Group will realize JAL Vision 2030 in coordination with our
stakeholders, utilizing the strengths, which we have cultivated over the years.

7

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Chapter 1 Foreword

Our Purpose

Our Strength

Our Vision

TOP MESSAGE

Foreword
The JAL Group Value Creation Story
Medium Term Management Plan

TOP MESSAGE

Representative Director, President
Japan Airlines Co., Ltd.

9

JAL REPORT 2022

Data Section

AKASAKA Yuji

Sustainability

We Will Create a Safe and Secure
Society and a Sustainable Future with
ESG at The Core of Management,
Utilizing Our Strengths to The Maximum

The JAL Group team is working united
and aligned to achieve sustainable growthand development in accordance with the
FY2021-2025 Medium Term Management Plan.
This fiscal year, the second year of the
five-year plan, we created Rolling Plan
2022 and to accelerate the realization of
JAL Vision 2030, we made a big change to
our policy; we put ESG strategy, one of thethree pillars of our management strategy,
at the core of management.
How will we solve management issues
such as normalizing earnings, promoting
medium-term business restructuring,and restructuring our business modelthrough long-term ESG strategies in orderto achieve long-term enhancement ofcorporate value? President Akasaka spokeof his determination and enthusiasm.

TOP

JAL REPORT 2022

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Chapter 1 Foreword

Our Purpose

Our Strength

up and the aviation industry faces headwinds.
Meanwhile, the JAL Group steadily implemented theMedium Term Management Plan. We established fourbusiness areas in our Business Strategy: Full Service
Carrier (FSC), LCC, Cargo and Mail, and Mileage, Lifestyleand Infrastructure, all non-aviation business domains, andare also working on promoting business restructuring to
expand our revenue streams, especially outside the FSC
business. In June 2021, we welcomed LCC SPRING
JAPAN to the JAL Group, and in March 2022, JALUX to
the JAL Group, a global trading company specializing inaviation, thus significantly expanding our business fields.
In addition, ZIPAIR Tokyo, a medium- and long-haul
LCC, became the first LCC to offer transpacific flights,
while cargo and mail flights generated record revenues.
Furthermore, we introduced the low-noise, fuel-efficient
Airbus A350 to our FSC operations, which will contributeto our ESG strategy, and upgraded our domestic flagshipfleet. Even as the pandemic dragged on, we neverstopped moving forward.

Association), the oneworld alliance and our business
partners.

Return to profitability in FY2022 :Rebuilding the financial base

*Credit rating taking into account hybrid financing

Accelerating business restructuring :Strengthening resilience and improving profitability
In our business strategy, we urgently need to strengthen
resilience and improve profitability through businessrestructuring. Before the pandemic, the FSC business
and Cargo and Mail business generated profits, but
going forward, we would like to see the LCC andMileage, Lifestyle and Infrastructure business, a growing
business area, generate roughly half of our profits.
The Mileage and Commerce businesses, in particular,
have low volatility and stable growth potential, which willcontribute to strengthening resilience. Rapid growth isexpected in these business areas by developing new
business models through digital transformation (DX)utilizing our customer base.
Each of the four business areas is not completely
independent; they cannot exist without our core
FSC business, a source of strength. For example, it
is important to expand e-commerce utilizing FSC’s
customer base and to diversify business areas,leveraging the knowledge, experience and technologicalcapabilities of diverse human resources cultivated in the
FSC business.
Another important factor is the JAL Philosophy. It isthrough the JAL Philosophy, the shared values that welive by and what supports the strong our teamwork, that
we can create new collaborations and synergies one
after another as our business areas diversify.

Medium Term Management Plan
Sustainability

At the beginning of fiscal 2022, the aviation industry
finally started to show signs of life again. With thegradual easing of international travel restrictions andvarious measures to stimulate domestic demand, travel
demand is recovering strongly. Customers have flocked
to airports and flights, and on seeing this,I felt that people’s desires "to travel" and "to see" will
never fade away.
The first quarter went largely according to the plan andoperating cash flow bounced back to positive cash flow.
Under the plan, we aim to return to monthly profitability
in July and achieve 80 billion yen in EBIT, similar to prepandemic levels, and resume dividend payments toour shareholders. Despite the pandemic, we secured
employment of all our employees and maintained humanresources, making it possible to respond to the rapid
recovery in demand without any problem.
I am also confident that we will accomplish our plan,
as we have been able to absorb some of the negative
effects such as high crude oil prices through profitability
improvement measures over the past two years.
By accelerating business restructuring, we would liketo achieve and deliver an upside to our profit targetof 185 billion yen in EBIT by fiscal 2025. As for our
financial base, we are maintaining an equity ratio of
approximately 40%* and by generating consistently highprofit, we will rebuild a strong and firm financial base.
In addition, the aviation industry as a whole is taking
action to overcome unprecedented damage. We willcontinue to work in unison with the Scheduled Airlines
Association of JAPAN, IATA (International Air Transport

The JAL Group Value Creation Story

I would like to express my heartfelt sympathy toeveryone who contracted the novel coronavirus(COVID-19) and their families and express my sincere
gratitude to everyone who is working to bring thesituation under control, including healthcare workers
and administration.
In May 2021, the JAL Group announced a new Medium
Term Management Plan and took a step forward towardsustainable growth and development through a threepillar management strategy: Business Strategy, Finance
Strategy and ESG Strategy.
However, we were struck by two unexpected situations.
One was the prolonged pandemic. The rampant spreadof variants restricted the movement of people. The
other is the Russia-Ukraine situation. Flights to European
destinations are still restricted, crude oil prices are shooting

TOP MESSAGE

Foreword

FY2021-2025 Medium Term Managment Plan :Review of the first fiscal year of the plan

Our Vision

Management issues
FY2021-2025
Announcement of the Medium Term
Management Plan

FY2021
Short-term
challenges

Long-term
challenges

11

JAL REPORT 2022

2025

2030〜

Normalize earnings(return to profitability, resume
dividend payment)

Data Section

Medium-term
challenges

2022

Promote business restructuring
Rebuild the financial baseTransform the business model with ESG strategies

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Chapter 1 Foreword

Our Purpose

Our Strength

In conclusion :Building on our strengths
After experiencing COVID-19, an unprecedented crisis,
I was reminded of our strengths; the human resourcesbase and customer base.
All of our 36,000 or so employees practice the JAL
Philosophy, and the culture of aiming for continual
betterment of society has permeated through theorganization. Even in challenging situations, thismotivation has never waned. In the latest employee
awareness survey, the scores for "I feel purpose andam motivated to work for society" and "I am satisfied
working for the company" improved compared to preCOVID-19 levels. The results show that awareness of
the SDGs is high and on par with "Safety" and "Service."
In addition, our approximately 3.6 million JAL Card
members, approximately 30 million JAL Mileage
members and other JAL Group customers show
support and empathy for our business and products
and services, are repeaters and provide advice. They
continue to support us even though they are unable to
fly with us as often as before.
As the JAL Group is supported by diverse humanresources with high goals and customers who warmly

Growth scenario
Enhance the JAL Group's strengths sustainably

Humanresources
base

Improve
employeeengagement

Improvecustomerengagement

Customerbase

Improve performance

Financialbase

support us, we can confidently make big changes,
such as business restructuring and the implementationof ESG strategies. We will continue to work to achieve
growth, while improving employee engagement andcustomer engagement.
The JAL Group will fulfill its responsibilities as a social
infrastructure and lifeline, and work united and aligned
to become the world’s most preferred and valued airline
group of all stakeholders. We look forward to working
with you.

Medium Term Management Planpeople, commodities and logistics by solving social
issues. Our reason for being is to contribute to humanexchanges and mutual understanding, utilizing ourability to transcend location barriers and time barriers,
which are strengths of an airline, and create a society
and future where people and goods freely move around.
With this awareness, we aim to create sustainable
demand.
We will focus on three key issues: the global
environment, safety and security, our mission as a social
infrastructure, and strive to make everyday life and life
stages even better.
In particular, as CO2 emission reduction is the mostimportant issue for airlines, the JAL Group aims toachieve net zero CO2 emissions by 2050. Amid the
pandemic, we steadily upgraded our fleet to low-carbon
aircraft such as the Airbus A350. Half of the carbon
reductions by 2050 will be achieved through upgrades
to fuel-efficient aircraft, but we will need to use SAF to
reduce the other half of emissions.
First, we have concluded agreements with various
suppliers overseas to replace 10% of total fuel on board
with SAF in 2030. The next challenge is procuring SAF
in Japan. We will cooperate with various parties such as
the aviation industry, oil wholesalers and authorities toensure stable SAF procurement at a fair price.

The JAL Group Value Creation Story

Amid social changes caused by COVID-19, the growing
momentum toward sustainability, or a sustainable
society, has been remarkable. Environmentally-friendly
and socially responsible products are important as wellas price and quality.
Standing at a time of significant change in social values
and a big turning point in history, our aim to create asustainable society through our business is a worthy
cause that will stimulate growth of our ambitious anddiverse workforce. JAL Vision 2030, which contains
long-term targets for 2030, upholds the goals ofcreating a society where everyone can live safely andwith peace of mind and build a sustainable future. In
Rolling Plan 2022, an amended version of the Medium
Term Management Plan, we have put ESG strategy at
the core of management to accelerate the realizationof JAL Vision 2030. We have redefined growth as"enhancement of corporate value" rather than theconventional idea of increasing "volume" or "scale.” We
will make a major shift in our products, services andbusiness model from an ESG perspective.
Our ESG strategy is to create sustainable flows of

TOP MESSAGE

Foreword

Putting ESG strategy at the core of management :Enhancing corporate value over the long-term

Our Vision

Sustainability
Data Section

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Chapter 2 The JAL Group Value Creation Story

Foreword

1. JAL Group's Value Creation Story

JAL Vision 2030: Achieving Carbon Neutrality
The business environment has changed drastically due to COVID-19. Leveraging the strengths it has cultivated over the years, the JAL
Group aims to become the world's most preferred and valued airline group by implementing JAL Vision 2030, which focuses on "creating asafe and secure society" and "building a sustainable future." To achieve this goal, all employees will work together to implement the JAL

The JAL Group Value Creation Story

Our Purpose p.3

Group FY2021-2025 Medium Term Management Plan, which revolves around ESG strategies.

To become the world’s most preferred andvalued airline group, where many people
and goods freely move around

FY2021-2025 Medium Term Management Plan
Rolling Plan 2022 p.37

FY2050Carbon Neutrality p.70

Medium Term Management Plan

Accelerate implementation of management strategies with ESG strategies
as the core to increase resilience and achieve sustainable growth

Our Vision p.7

JALグループは、大きく時代が動き価値観が変わるなか、Changes in the external
environment p.38
Society
Further rise in momentum to achieve the SDGs

Market「安全・安心」と「サステナビリティ」
を未来への成長のエンジンとして、以下を実現します

ESG Strategy p.41

E

Growth Strategy and Enhance Corporate Value
Solving social issues and creating sustainable flows of people,
commodities and logistics

S

Safety andPeace of Mind

G

Build a society
where everyone
can live safely andwith peace of mind

Structural changes in air travel demandand consumer behaviour

Airline Industry and JAL

Before the Corona crisis

Prolonged period of severe damage to business

Growth centered on the aviation sector (full-service carriers andfreight mail), driven by the growing aviation market driven by
the increasing number of foreign visitors to Japan.

■ Destabilization of the world situation,
particularly in Europe■ Fluctuations in market conditions (fuel andexchange markets)

Our Strengthp.5

LCC Net sales

JAL

DX Strategy Maximize CX and EX

p.55

Strengthening customer engagement

Customer base onsolidate efforts of
Human resource strategy Chumanresources

p.57

Strengthening employee engagement

Shift to growthinvestments
and shareholder
returns

Financial Strategy p.59

Rebuilding the financial
base

Sustained growthJAL

FY2020

FY2021

FY2022-

FY2025

FY2030

Data Section～FY2019

JAL REPORT 2022

世界で一番選ばれ、愛されるエアライングループを目指します

Accelerate business restructuring to increase resilience

Aviation area

15

Build a better future
where everyone canfeel fulfilled andhopeful

多くの人々やさまざまな物が自由に行き交う、心はずむ社会・未来において

p.43

Human resource baseFinancal base

Sustainability

Sustainability

Non-aviation area

Business Strategy

JAL
Vision2030

FY2050TOP

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1. JAL Group's Value Creation Story

2. JAL Group's Value Creation Process

3. Foundation for Value Creation

2. JAL Group's Value Creation Process
Solving Social Issues and Enhancing Sustainable
Corporate Value

the basis foundation of flight safety. Leveraging the foundation of value creation and diverse capital such as
human resources and aircraft, we will solve social issues and create sustainable flows of people, commodities
and logistics and achieve sustainable enhancement of corporate value.

Business Model (business activities)

OUTCOME (Value to Create)

OUTPUT (Products and Services)

EE SS GG Put ESG strategy as the core of management strategy as the growth strategy toward 2030

Stakeholders

Diverse and professional human resources

Domestic
Stability

International
High

Full Service Carrier

GrowthSocial capital

Price range
LCC

LCC

●

•JAL Group airlines, the oneworld alliance, etc.
Cities serviced: 441•Collaboration with regional communities in Japan

Our three LCCs will offer
reasonable prices for tourism
and VFR* demand and makeair travel easier and moreaccessible.

High

Low
Short
Domestic Flights

International Flights

Long* Visit Friends and Relatives

Large customer base•JAL Mileage Bank members: approx. 30 million

Production capital
Cargo and Mail

Aircraft and serviced airports•JAL Group aircraft: 12 aircraft types, 227 aircraft•Domestic and international airports: 95

Financial capital●

Promptly respond to strong demand using cargo space of passenger aircraft including
LCCs and operating charter flights with business partners●

Provide advanced transportation services such as transport of pharmaceuticals●

Launch freight business with Yamato HD in response to the 2024 issue of trucks andtransport companies

A strong financial base

Natural capital
Finite resources•Energy sources such as jet fuel•Tourism resources, materials and commodities
generated from a rich natural environment andbiodiversity

Mileage, Lifestyle andInfrastructure*Shareholder equity ratio in credit rating evaluation taking into
account hybrid financing

Mileage andLifestyle●

Expand into growing business areas using ourcustomer base and know-how●

Expand partnerships with businesses in different
industries.

Air Mobility

Regions

Contracted
Services

Number of cities and routes served
RTK*2

Mileage issued
Product sales volume
Flights handled by contracted services
Regional business sales
Air mobility service

JAL Philosophy p. 22

Divisional Profitability Management System p. 23

Business
partners

External
partners

Shareholders Next generation/and investors
Employees

Social value
Networks connecting Japan
with the world, that aresafer and more secure withlittle environmental impacts

4 priority areas, 22 issues, and c. 180
initiatives to achieve the SDGs（p.65）
Top priority issues (FY2025 target)
Aircraft Accidents and Serious Incidents

Safety and0
Peace of Mind (during the entire period of the Medium Term Management Plan)NPS*1 + 4.0pt (FSC international/domestic)

Create a new social
infrastructure leveraging
our strengths in aviation

Environment

Total emissions: below 9.09 million tons
Cargo and Airports:	Eliminate petroleum-derived
plastic
Cabin and Lounge:	100% switch to ecofriendly materials

Communities

Domestic passenger*2 and Cargotransport volume+ 10% vs. FY2019
Group Female Managers Ratio:

People30%

Economic value
Make everyday life andall life stages even better

Sales from new busineses+300 Bn JPY*
(vs. FY2019)

Fuel cost reduction by updating to fuel-efficient aircraft▼40 Bn JPY*

(Reduction effect if measures are not implemented)

Sales per employee+30%*(vs. FY2019)

Investment and asset optimization
Increase freedom in management*Targets by FY2030*1 Revenue passengers carried x Distance traveled evenue cargo and mail weight x Distance transported*2 R

Data Section

Foundations of Value Creation
Safety Charter p. 19

RPK*1

External
partners

Sustainability•Equity: 799.7 billion yen•Equity ratio: 41.1%*

Number of cities and routes served

Regional
communities

Medium Term Management Plan

Networks connecting regional areas in Japan withthe world

Number of cities and routes served

Realize sustainable air transportation of the future

Business portfolio

Social infrastructure•Regulations and manuals•IT systems (e.g. enterprise systems)•Open innovation (JAL Innovation Platform)

Operations with the latest
aircraft, high quality services,and creation of stable flowsof people and distribution
channels through highly
convenient networks

Solve social issues Create sustainable flows of people, and sales and distribution channels

Accumulated expertise●Strengthen coordination among business areas (portfolio management, creation of Group synergies (p.44))

Intellectual capital

Customers

Full Service Carrier•Consolidated employees: 35,423•Percentage of men: 49.9%, Percentage of women: 50.1%•Total hours spent on drills and training per person: 162.3

The JAL Group Value Creation Story

Human capital

Foreword

INPUT (key management resources)

The JAL Group, as a social infrastructure and lifeline, operates in four areas typical of a Full Service Carrier, on

Wellbeing

Chapter 2 The JAL Group Value Creation Story

JAL Group Code of Conduct “Commitment to Society” p. 24

Corporate Governance p. 25

Increase corporate Value
17

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JAL REPORT 2022

18

Chapter 2 The JAL Group Value Creation Story

1. JAL Group's Value Creation Story(1) Safety Charter(2) JAL Philosophy

3. Foundation for Value Creation

2. JAL Group's Value Creation Process(3) Divisional Profitability Management System(4) JAL Group Code of Conduct(5) Corporate Governance3．Foundations of Value Creation■Implementation of the safety management system (PDCA cycle)
Foreword▶Safety risk management（1）Safety Charter①Gathering and dissemination of information
We gather a wide range of information from reports on unsafe behavior and acts, the flight data analysis program, crew fatigue
risk management program and alcohol risk management program, and use it to prevent safety events.
②Managing risks
In formulating safety measures for air transport and promoting responses to accidents and troubles, we manage risk through thefollowing steps.

Identify hazard*

Safety Charter

The JAL Group Value Creation Story

The JAL Safety Charter provides the JAL Group's determination, fundamental attitude, and actions on safety,
which is indispensable to airlines. The JAL Group places particular importance on the safety management
system, which is a collection of structured organizational processes for promoting safety, and a safety culture,
which is a foundation of safety. Every employee, from top management to frontline staff, observes the Safety
Charter on a daily basis.

Utilizing gathered information on unsafe conditions and unsafe events, we identify hazards
and real or hidden risk factors with the potential to cause or contribute to an aircraft
accident, serious incident or other adverse events.
* Any source of danger or potential danger which may cause or contribute to an aircraft accident, serious
incident or other adverse events.

Safety: The protection of lives.
This is the commitment and basic foundation of business continuity for the JAL Group.
We take to heart our mission and responsibility as safety professionals to ensure a safe operation on
every flight with the best of our knowledge, skills and abilities.
To accomplish this, we will act according to the following principles.

Establish measures

Monitor and review

We establish and implement measures to eliminate each hazard so that high priority risks
are reduced to a tolerable level.

Medium Term Management Plan

· Stop immediately when safety concern arises.
· Comply with rules and strictly follow standard operating procedures.
· Always check and confirm; never rely on assumptions.
· Promptly communicate information without omission to ensure safety.
· Deal with problems quickly and appropriately without underestimation.

Assess risk

We determine the severity of consequences and the probability of occurrence, assess
the acceptability of the risk level and examine the need to take action. Multiple risks areprioritized, as necessary, to know which ones are most urgent.

We monitor the measures and evaluate their effectiveness. If the risk is determined not to be
acceptable, we establish and implement additional measures.

▶Education, training and safety awareness①Initiatives based on the three actuals principle
JAL Group employees are educated on the importance of safety from the depths of their minds by going to the accident site (theManagement

Safety Management SystemPlan

A safety management system is a generic term for a collection of structured

Actionorganizational processes that include safety policies, organizational structures,

actual place), looking at aircraft debris and personal belongings of victims (the actual objects), and listening to stories of those
who experienced the accident (the actual people).

Do②Safety education

CheckWe conduct Group-wide safety seminars for new employees and managers.

responsibility sharing, and methods of safety risk management. In accordanceof safety.

with the JAL Group Safety Charter, our fundamental safety policy, management,
the Corporate Safety and Security Division and other divisions implement the
PDCA cycle for safety, and organically link it across organizations to ensure thesafety management system functions properly and continuous improvements
are made.

■Safety management structure・As there are eight airlines in the JAL Group including
Japan Airlines, safety is managed under a common policy

Plan

Do

Plan

Do

ActionCheck

ActionCheck

Divisions

Corporate Safety and Security
Division

PDCA Cycle of the Safety Management System

・The President assumes final responsibility for safety.
・The Chief Safety Officer, appointed by the President, hasoverall responsibility and authority for the safety management

Council in order to maintain uniform and high safety levels

system, and makes important management decisions

throughout the JAL Group. In addition, the Group Operational

including safety measures and safety investments.

Safety Promotion Committee has been established as a
to maintain and strengthen safety cooperation between JAL
divisions and Group airlines.

19

JAL REPORT 2022

For details the safety management system, please visit the JAL website.
WEB

https://www.jal.com/en/flight/sf_organization.html③Training and assessment
To assure stable safety and quality standards, training and assessment are conducted for pilots, maintenance engineers, cabin
attendants and dispatchers.
▶Internal audits
We conduct internal audits regularly in accordance with the requirements established by the Ministry of Land, Infrastructure,
Transport and Tourism (MLIT) and the International Air Transport Association (IATA) in order to identify areas for improvement in thesafety management system and improve safety standards.
▶Management review

Data Section

which was confirmed by the Group Safety Enhancement

subcommittee of the Group Safety Enhancement Council

Sustainability

Furthermore, we conduct safety education every year for all employees aimed at raising awareness to think and act on the basis

The Group Safety Enhancement Council reviews policies and plans every year and evaluates and improves the safety management
system to ensure that it is functioning effectively.
▶Management of Change
We have established and implement a Management of Change process to manage risks arising from upsizing and downsizing oforganizations, and changes to facilities, systems, processes, and procedures with the probability of affecting safety.

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JAL REPORT 2022

20

Chapter 2 The JAL Group Value Creation Story

1. JAL Group's Value Creation Story(1) Safety Charter(2) JAL Philosophy

2. JAL Group's Value Creation Process(3) Divisional Profitability Management System

3. Foundation for Value Creation(4) JAL Group Code of Conduct(5) Corporate Governance▶Third-party assessment

The JAL Philosophy is a mindset, a set of values, and an attitude expected of everyone working on JAL services
and products. By distributing the JAL Philosophy Pocketbook to all employees, deepening their understanding,and practicing the JAL Philosophy, we believe that every employee will be able to work with confidence andpride, and that we can build team trust and boost collaboration to create value.

JAL regularly undergoes safety audits by the Ministry of Land, Infrastructure, Transport
and Tourism (MLIT) and IOSA (IATA Operational Safety Audit), an international safety
audit program to enhance safety management.
②Advice and recommendations from the Safety Advisory Group

Align Mental Vectors ーToward the realization of the corporate policy ーIn August 2005, the Safety Advisory Group was established comprising five external
experts to provide advice on safety issues. The members possess extensive

management and safety operations.

Philosophy, which contains shared criteria for decisionSafety Advisory Group: (left rear) Prof. Haga, Prof.
Komatsubara, (left front) Prof. Hatamura, Mr.
Yanagida (Chair), Prof. Kamata

A Safety Culture
A safety culture is an organizational culture and an organization’s shared awareness about safety.
The JAL Group is working to foster a safety culture based on lessons learned from the past.

A reporting culture

A culture of decision-making and challenge
The JAL Group aims to achieve sustainable growth and development by adapting to the rapidly changing environment. As it isextremely important from the viewpoint of safety for employees to make decisions within their authority and responsibility, we
are reviewing and improving the decision-making process to ensure smooth and prompt decision-making.

A communication culture

A culture of refining manuals
JAL Group employees strive to understand the true meaning of their work manuals by always asking themselves, "What is thisprocedure for?" Also, manuals are there to follow but also to change. Therefore, we search for improvements necessary whenusing the manual and revise manuals together with manufacturers. We have established a framework for periodic inventory
both in quality and in quantity.

A culture of thinking from the “second to third person perspective”

unparalleled service to our customers, increase corporate

Part 1 In Order to Lead a Wonderful Life
Chapter 1 The Formula for Success(The Formula for Life and Work)The Result of Life and Work= Attitude × Effort × Ability

Fire Yourself Up
Strive for Perfection
Chapter 4 Ability Will Improve
Ability Will Improveにつながる取り組みを行い、全社員でベクトルを合わせて、
Chapter 3 Unite Our Hearts「お客さまに最高のサービスを提供し、社会の進歩発展に
Make the Best Baton Pass
Align Mental Vectors
貢献する」という企業理念の実現を目指しています。

Part 2 To Become a Wonderful JAL
Chapter 1 Each of Us Makes JAL What It Is
Each of Us Makes JAL What It Is
Discuss Frankly
Lead by Example
Be the Center of the Vortex
Valuable Lives Are Entrusted to Us in Our WorkBe Thankful
Put Yourself in the Customer’s Position

Chapter 2 Have the Right Attitude
Base Criteria for Decision-Making on“Doing What Is Right as a Human Being”
Have a Beautiful Mind
Be Humble and Honest
Always Be Cheerful and Positive
A Small Good Is Like a Great Evil, While aGreat Good May Appear MercilessWrestle in the Center of the Ring
Grasp Matters Simply
Possess Opposing Extremes
Chapter 3 Accumulate Tedious Efforts with Passion
Work Earnestly
Accumulate Tedious Efforts
Work with Voluntary Attention

Chapter 2 Have a Keen Sense of Profitability
Maximize Revenues and Minimize Expenses
Elevate Our Cost-Consciousness
Pursue Profit Fairly
Manage the Company Based on Accurate Figures“Workfloor” Management
Follow the Merit System

Chapter 4 Possess a Fighting Spirit
Maintain an Ardent Desire
Never Give Up Until We Succeed
Boast and Make It Come True
Possess True Courage
Chapter 5 Be Creative in Our Work
Today Should Be Better Than Yesterday, Tomorrow
Better Than Today
Conceive Optimistically, Plan Pessimistically, andExecute OptimisticallyThink Through to Visualize the Results
Decide and Act with Speed
Face Challenges with Courage
Aim High■Initiatives to practice the JAL Philosophy▶JAL Philosophy Workshop▶Leaders Workshop

JAL Philosophy Workshops are

To align the mental vectors ofheld to repeatedly study the JAL

leaders, leaders workshops

Philosophy. Approximately 36,000

are held six times a year for

employees, from Executive Officers

Executive Officers and Viceto new employees of all Group
companies, participate in study

An online workshop

Presidents, and twice a year for

Leaders Workshop held in June 2022

managers.

sessions three times a year. To create opportunities for cross-

By repeatedly studying the awareness, values, and attitudes

functional communication and foster a sense of unity, workshops

expected of leaders, we aim to create an organization whereare held online, connecting employees from around the world.

all employees can find fulfillment at work.

Voice

JAL Philosophy and I
At Haneda Airport, where I was assigned immediately after joining the company, it was difficult to conduct normal
business due to significant flight reductions. To express our gratitude to JAL passengers even under thesecircumstances, we started to send off international flights on "Nikko Day," which was previously performed only
for domestic flights. Although there were many challenges, I feel that we were able to do this because the JAL
Philosophy, "never give up until we succeed," was instilled in every employee. We will continue to grow as humanbeings and practice the JAL Philosophy in order to contribute to the development of our company and society.

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JAL REPORT 2022

Data Section

ONODERA Mitsuki
Work Philosophy Department

JAL REPORT 2022

共通の判断基準であるJALフィロソフィのさらなる実践

JAL Philosophy

In order to encourage JAL Group employees to think from the customer’s perspective, we place importance on the “second to third
person perspective,” which combines the third person perspective of thinking from a specialized airline professional and the firstand second person perspective of treating customers as if we or our family were the customer.

21

JAL Philosophy＝ Common Criteria

value and contribute to the betterment of society.”

Sustainability

The JAL Group is promoting communication and creating opportunities for employees to verbally share information face-toface. An activity has been running since 2006, where employees across divisions meet and revitalize the organization. We also
employ “verbal confirmation” as a means of interactive communication to ensure thorough checks and instill this practice inworkplaces.

Mental Vectors

capabilities to realize the Corporate Policy, “provide

Medium Term Management Plan

Reporting hazards is essential to safety management. Therefore, we have introduced a voluntary reporting system to avert
emerging safety problems. Even minor human errors are reported and used to establish preventive measures. In 2007, JAL
became the first airline in Japan to introduce a non-punitive reporting policy to inform employees that they will not be punishedfor human errors if the Company deems that they occurred even though every precaution was taken. In this way, we havecreated an environment to encourage employees to report spontaneously without hesitation.

making, and align mental vectors and organizational

The JAL Group Value Creation Story

recommendations on safety from an expert’s viewpoint, which we apply to Group

Realization of the Corporate Policy

JAL Group employees autonomously practice the JAL

knowledge and experience in human factors, failure and defect analysis, organizational
operation and culture, and safety, and provide a wide range of objective advice andForeword(2) JAL Philosophy①External audit

22Chapter 2 The JAL Group Value Creation Story

1. JAL Group's Value Creation Story(1) Safety Charter(2) JAL Philosophy

2. JAL Group's Value Creation Process(3) Divisional Profitability Management System

3. Foundation for Value Creation(4) JAL Group Code of Conduct(5) Corporate GovernanceThe divisional profitability system is based on amoeba management and has the strengths of "proactive
management" and "employee participation."
The JAL Philosophy, which contains shared values, is essential to the operation of this system. It helps us to not
only maximize divisional profits but also pursue profits for the “best of all.”“Commitment to Society” is a behavioral guideline to be followed by all employees to increase corporate
value and realize a sustainable society. Under the commitment of top management, all employees conduct
themselves with a deep understanding of the purpose and objective of the Code of Conduct, thereby building
trust from our stakeholders and society and actively contributing to the realization of a sustainable society.

A Driver of Employee Engagement In Management

Driving the Practice and Application of the JAL Philosophy

By creating a Target and Result Table that lists monthly financial results and earnings forecasts in a shared format for allorganizations, all employees can understand management information from the same perspective, which in turn encourages
autonomous employee participation in management.
In addition, leaders of each organization are responsible for the profitability of their own organization, pursue profits and gain
management experience, which contributes to the development of the next generation of management personnel. Throughthe divisional profitability management system, we promote employee participation and develop management personnel, torealize the Corporate Policy.

By thinking and acting in accordance with “Commitment to Society,” we will further ensure the application of the JAL
Philosophy, which will contribute to solving social issues such as the SDGs and realizing the Corporate Policy.

JAL Group Corporate Policy

JAL Group Code of Conduct

Practice the
JAL Philosophy

Utilize
the divisional
profitability
management
systemJAL Group Code of Conduct
Preamble

1. Safety

2.
3.
4.
5.
6.
Pursuit of Trust with Respect for Mission andPassing on thecustomer stakeholders human rights responsibility precious earth to thesatisfaction
and job
as a member
next generation
satisfactionof society(global environment)

7.
Fairbusinesspractices

JAL Philosophy■Efforts that proved effective during the
pandemic■Role in realizing the medium term
management plan

23

JAL REPORT 2022

For the full text of the JAL Group Code of Conduct, please visit the JAL website.
WEB

https://www.jal.com/en/sustainability/codeofconduct/

Initiatives to Instill and Practice the JAL Philosophy
Since the JAL Philosophy was established in 2019, we have focusedon disseminating and instilling the JAL Philosophy in employees and

FY2019FY2020

FY2021

Established anddisseminated(individuals)

Understand andpractice(Individuals)

Practice and instill(individuals andorganizations)organizations. Practicing the Code of Conduct cannot be achieved alone;coordination in the workplace is essential. Therefore, in FY2021 we
focused on workplace communication, which has led to further instilling

Data Section

We will make maximum use of these two strengths, "proactive
management" and "employee participation," to restructure our business.
Utilizing "proactive management," we create a monthly earnings forecast
in each business area to grow the business, while responding immediately
to new market conditions. At the Group Business Performance Reporting
Meeting attended by all Executive Officers, for example, the executivesof the FSC business provide recommendations on issues and necessary
actions in the Mileage and Lifestyle business. In this way, proposals andsuggestions are exchanged to generate synergies across the JAL Group
based on "employee participation" We seek to achieve growth in eachbusiness area from all perspectives of the JAL Group.

Sustainability

Continued implementation of the divisional profitability management
system proved to be effective during the pandemic. Utilizing the strengthsof “proactive management,” we achieved flexible cost management.
By analyzing earnings forecasts months ahead, we adjusted capacity
in response to sudden fluctuating demand, thereby controlling variable
costs such as operating expenses. Based on the forecast, all employees
thought of what they could do to improve profitability and put their ideas
into practice. We were able to demonstrate the strength of “employee
participation” and improve the profitability of the JAL Group.

Medium Term Management Plan

1. Safety
2. Pursuit of customer satisfaction
3. Trust with stakeholders(1) Information disclosure and dialogue(2) Prohibiting insider trading
4. Respect for human rights and job satisfaction (humanrights and labor)(1) Respecting human rights and diversity(2) Safe and comfortable work environments
5. Mission and responsibility as a member of society(1) Contributing to regional revitalization through our business(2) Responsibility as a company that plays a role in social
infrastructure(3) Responsibility as a corporate citizen
6. Passing on the precious earth to the next generation(global environment)(1) Global environmental preservation initiatives(2) Disclosure of environmental information and dialogue
7. Fair business practices(1) Reinforcing compliance(2) Preventing corruption(3) Fair business relations with business partners(4) Free and fair competition(5) Management of personal information and intellectual
property(6) Eliminating relations with antisocial forces Full text of the
JAL Group Code of Conduct

Realize the JAL
Group Corporate
Philosophy
Consistently generate
profits through employee
participation in management

The JAL Group Value Creation Story(4) JAL Group Code of Conduct “Commitment to Society”

Foreword(3) Divisional Profitability Management System

the JAL Philosophy and promoting daily practice.
For social issues to be addressed by the JAL Group (4 areas and 22 issues),
see Chapter 4, Sustainability on page 63.

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JAL REPORT 2022

24

Chapter 2 The JAL Group Value Creation Story

1. JAL Group's Value Creation Story(1) Safety Charter(2) JAL Philosophy

2. JAL Group's Value Creation Process(3) Divisional Profitability Management System

3. Foundation for Value Creation(4) JAL Group Code of Conduct(5) Corporate Governance

We maintain an awareness that the JAL Group is a corporate citizen with the duty of fulfilling our financial
responsibility of earning adequate profits through provision of high quality products in a fair and competitiveenvironment as well as fulfilling our corporate social responsibility. Thereby, we will deliver unparalleled service to
our customers, while upholding safety as a leading company of safety in the transport sector.
Based on this stance, we have established the JAL Philosophy based on the Corporate Policy, and acorporate governance system that exerts strong management monitoring while maintaining high managementtransparency and makes speedy and appropriate management decisions in order to increase corporate value
and fulfill accountability.
For details of the Fundamental Policies of Corporate Governance and the Corporate Governance Report, please visit the JAL website.
WEB

https://www.jal.com/en/outline/governance/*Matters not specifically mentioned in this section are those about Japan Airlines Co., Ltd.

Personnel Committee ｜ 2 meetings held in FY2021
Submits a report on inquiries from the Board regarding thenomination and dismissal of Executive Officers.
In FY2021, the committee discussed matters to be reported to theBoard of Directors, and the training of candidates for Executive Officer
positions and the ideal new execution structure. It also prepared a listof Executive Officer candidates.

① Corporate Governance System■Corporate Governance System

OutsideInternal

General Meeting of Shareholders
Appointment・Dismissal
Appointment・Dismissal

Corporate Governance Committee
Three of the four members
are Outside Directors.
Outside Audit and Supervisory Board
Member 1 Observer

Advisory・
Recommendation

Three of the nine are Outside Directors.
Audit

Nominating Committee

Appointment・Dismissal
Instruction

Three of the five members are
Outside Directors.

Compensation Committee

Board of Directors

Advisory・
Recommendation

Supervision・Instruction・
Delegation of Authority

President

Instruction
ReportFinancial Audit
Report・Collaboration

Audit Department

Instruction・ReportCollaboration* The following committees have been established as management committees
directly under the President.:

JAL Philosophy Council

Personnel Committee

Executive Officers

Councils andCommittees, etc.*1

Group Business Performance Reporting MeetingGroup Safety Enhancement Council
Group Risk Management Council

Officers Disciplinary Committee

Supervision

Three of the five members are
Outside Directors.

Audit●Risk Management and Information Security Committee●Financial Risk Committee

Internal Audits
The Audit Department (ten employees) performs internal audits,
centering on Group-wide themes concerning the risk of large
losses, business effectiveness and efficiency, credibility of financial
statements, legal compliance, asset preservation, etc., according
to a risk-analysis-based audit plan for the fiscal year. With regard
to the credibility of financial statements, the Audit Department also
conducts assesments in general as an independent organization
under the President in the internal control reporting system relating
to financial statements, in accordance with the Financial Instruments
and Exchange Act.
Results of internal audits are reported to the President andinformation on important matters concerning internal controls isprovided to the Audit & Supervisory Board Members and accounting
auditors to promote mutual coordination.
Audit and Supervisory Board Members regularly exchange opinions
and information with the Audit Department each quarter.

Sustainability Promotion Council●Sustainability Promotion Council

Departments and Subsidiaries

Group Management Council●Customer Experience Promotion Committee●JAL Wellness Promotion Committee●Investment Monitoring Committee●Subcommittee of the Council

Accounting Audits
KPMG AZSA LLC conducts accounting audits, in accordance with
the Companies Act and the Financial Instruments and ExchangeAct. In addition to periodic audits, accounting issues such as theestablishment, amendment and abolition of laws, regulations andrules are checked as necessary to achieve appropriate accounting
work.
Audit and Supervisory Board Members receive reports from theaccounting auditors at times of audit planning and the announcementof financial results and ask for reports as necessary.

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JAL REPORT 2022

Data Section

Executive Management Council

Officers Disciplinary Committee ｜ Not held in FY2021
Decides disciplinary action of Directors and Executive Officers.

JAL REPORT 2022

Collaboration

Sustainability

Instruction・
Delegationof Authority

Corporate Governance Committee ｜ Held twice in FY2021
Checks whether business activities comply with the JAL Group
Fundamental Policies of Corporate Governance, conducts analysis andassessment to determine whether they will contribute to sustainablegrowth and enhancement of corporate value over the medium- tolong-term, and provides necessary feedback and recommendations to
the Board of Directors.
In FY2021, the committee discussed matters related to Fundamental
Policies of Corporate Governance and formulated a policy on the
Board Effectiveness Assessment and submitted a report.

Three of the five members are
Outside Audit and Supervisory
Board Members.

Decision of
Proposals regarding
Appointment/
Dismissal
Accounting Auditor

Appointment・Dismissal

Three of the five members are
Outside Directors.

Three of the five members are
Outside Directors.

Audit & Supervisory Board

Appointment・Dismissal

Audit and Supervisory Board ｜ 15 meetings held in FY2021
The Audit and Supervisory Board makes objective and appropriate
decisions from an independent standpoint, based on their
responsibility to our shareholders, in fulfilling their role andresponsibility pertaining to their duties, namely, audit of businessexecution, nomination and dismissal of accounting auditors, andexercise of rights concerning auditor remuneration.

Medium Term Management Plan

Board of Directors ｜ 19 meetings held in FY2021
The Board of Directors exercises strong management monitoring witha high degree of transparency through the nomination of Directors,
Audit and Supervisory Board Members and Executive Officers,
decision of officer remuneration, and important decision-making.
To fulfill this role, the Board separates the management monitoring
and business execution functions. The Board Chair is nominated fromamong Directors who do not concurrently serve as Executive Officer.
In addition, at least three highly independent candidates arenominated for Outside Director, and Outside Directors account for atleast one-third of all Board members.
To ensure efficient decision-making, the Board of Directors entrusts
the President with decision-making regarding matters stipulated in the
Administrative Authority Criteria Table, in accordance with Regulations
for Kessai and Administrative Authority, which was approved by the
Board of Directors. In addition, the Executive Management Council
has been established to contribute to appropriate and agile decisionmaking by the Board of Directors and the President.
Generally, Directors and Audit and Supervisory Board Members must
attend at least 80% of Board meetings.

25

Compensation Committee ｜ 7 meetings held in FY2021
Submits a report on inquiries from the Board regarding remunerationof Directors, Executive Officers and Audit and Supervisory Board
Members. Inspects the remuneration system to ensure it provides
sound incentives toward sustainable growth.
In FY2021, the committee discussed and presented a report to theBoard of Directors on how the officer remuneration system should
be used to promote the Medium Term Management Plan morevigorously.

The JAL Group Value Creation Story

Nominating Committee ｜ 7 meetings held in FY2021
Submits a report on inquiries from the Board regarding the nominationof Directors and Audit and Supervisory Board Members. Defines thequalifications of President and other executives and manages Board
member development.
In FY2021, the committee discussed matters to be reported to theBoard of Directors, and the requirements and processes for theselection of candidates for Executive Officers for change of officers,
and future succession plans for management personnel.

Foreword(5) Corporate Governance*

26

Chapter 2 The JAL Group Value Creation Story

1. JAL Group's Value Creation Story(1) Safety Charter(2) JAL Philosophy

3. Foundation for Value Creation

2. JAL Group's Value Creation Process(3) Divisional Profitability Management System(4) JAL Group Code of Conduct(5) Corporate Governance② Management Structure
Foreword

Board of Directors (as of August 1, 2022)

KIKUYAMA Hideki
SHIMIZU Shinichiro

AKASAKA Yuji
TSUTSUMI Tadayuki

YANAGI Hiroyuki

HATCHOJI Sonoko

Candidates for Director are nominated from among persons who have substantial experience, deep insight and expertise in various fields, with a view tomaking board composition diverse in terms of gender, nationality, career, and age. The Company aims to have several female directors on the Board.
Legal considerations are explained to Directors to ensure that they are aware of their responsibilities including the “fiduciary duty of loyalty” and the “duty of careof a prudent manager” and opportunities are provided to Inside Directors for continuous participation in external training, affiliated organizations and such. The
term of office is one year in order to confirm their accountability for each fiscal year.
Outside Directors are selected from an appropriate number of at least three independent candidates and comprise at least 1/3 of the Board of Directors.
Candidates for Outside Director who do not qualify as highly independent within the meaning of “Standards for Independence of Outside Directors” establishedby the Company are not elected. In addition, persons who hold concurrent positions in more than four listed companies excluding the Company are notelected as a candidate for Outside Director. Furthermore, one Outside Director from among Outside Directors is elected as the Lead Independent Outside
Director to improve coordination with Corporate Auditors and internal divisions.

AKASAKA Yuji (January 3, 1962/ 60 years old)

SHIMIZU Shinichiro (December 13, 1962/ 59 years old)

Director, Chairperson

Representative Director, President

Representative Director, Executive Vice President

Since joining the Company, he has acquired an extremely high levelof insight on flight safety and frontline experience as a pilot. As
Representative Director and President from 2012, he demonstrated
strong leadership and determination to direct, formulate andexecute the Medium Term Management Plan. Since 2018, he has
contributed to strengthening the monitoring and advisory function of
the Board of Directors as Board Chair and a member of Corporate
Governance Committee.

Since joining the Company, he has been mainly engaged inmaintenance and engineering and acquired frontline experience anddeep insights into flight safety, as well as in-depth knowledge and abroad network in the engineering and maintenance industry. From
2014, he brought his strong leadership and decision-making skills
to JAL Engineering Co., Ltd. as President and solidified thefoundation of flight safety. As Representative Director and Presidentof the Company since 2018, he has been working intensively tomaintain flight safety, the basic foundation of the JAL Group, andhas been leading our employees toward realizing the Corporate
Policy through a proactive display of his initiative to practice the JAL
Philosophy.

Since joining the Company, he has held various positions inpersonnel and industrial affairs related to pilots and cabin
attendants, and has exercised strong leadership and planning andcoordination skills to achieve positive results. As Senior Vice
President of Human Resource Management from 2013 and head of
the Executive Secretariat Office from 2016, he made considerable
contributions to improving and stabilizing JAL’s presence by taking abird’s-eye view of the Company. Since April 2020, he has assisted
the President as Representative Director, Executive Vice President
and has contributed to strengthening and improving management.

■List of Directors

KIKUYAMA Hideki (March 19, 1960/ 62 years old)

TOYOSHIMA Ryuzo (August 17,1959/ 62 years old)

TSUTSUMI Tadayuki* (December 19, 1960/ 61 years old)

Representative Director, Senior Managing Executive Officer

Director, Senior Managing Executive OfficeDirector, Managing Executive Officer

Since joining the Company, he has held successive positions in IT
systems, passenger reservations, human resources, industrial
affairs, corporate planning and other divisions at JAL Head Officeand the Americas Regional Office, and has demonstrated
exceptional leadership and strong planning and coordination skills.
As Senior Vice President of Managing Division Route Marketingfrom 2013, he contributed greatly to maximizing route profitability.
Since 2016, as Senior Vice President of Financing and Accounting,he has demonstrated precise management decision-making skills
that contribute to comprehensible and highly transparent
disclosures to our shareholders and investors, and for the interestsof our shareholders.

Since joining the Company, he has held successive positions inindustrial affairs including Vice President and has achieved positive
results with his exceptional leadership and strong planning andcoordination skills. As Senior Vice President of Corporate Control
from 2015, he contributed significantly to the expansion of thedivisional profitability management system across the JAL Group.
Since 2019, he has greatly contributed to maximizing route
profitability as Senior Vice President of Managing Division RouteMarketing.

Since joining the Company, he has acquired an extremely high levelof insight on flight safety and frontline experience as a pilot. Serving
as Executive Officer of Flight Operations from 2019 and Senior Vice
President of Corporate Safety and Security since 2020 to present,
he has greatly contributed to maintaining flight safety with hisstrong sense of responsibility and ethics.

KOBAYASHI Eizo (January 7, 1949/ 73 years old)

HATCHOJI Sonoko (January 15, 1950/ 72 years old)

YANAGI Hiroyuki* (November 20, 1954/ 67 years old)

Independent Outside Director(Lead Independent Outside Director)

Independent Outside Director

Independent Outside Director

She has extensive experience in financial product development,
financing and risk management at banks, and in-depth knowledge
and experience in customer-centric marketing in hotelmanagement. She also possesses comprehensive knowledge andexperience in management strategy and diverse perspectives on
educational reform at universities. She draws on her experience toprovide advice on management and appropriate monitoring ofbusiness execution.

He has a wealth of experience and knowledge as a senior
management executive at companies that promote global
expansion. He provides advice to our management executives andmonitors business execution from a practical and multilateralperspective.

He has extensive experience and vast insight on global business
management and leadership at diverse group companies as top
management of a general trading company. He brings practical anddiverse perspectives to management and appropriately monitors
business execution from a practical and multilateral perspective.

Attendance (FY2021)
Important positions concurrently held (* is a public company)

Appointment of Committee Members

Tenure (year)

Number of Company
shares held (100 shares)

Attendance rate ofBoard meetings

Attendance of Board meetings

Corporate GovernanceCommittee〇

Skills Matrix

Nominating Committee

Compensation
Committee

Personnel Committee

Officers Disciplinary
Committee

UEKI Yoshiharu

10

365

100%

(19/19)Representative Director, President

AKASAKA Yuji

4

104

100%

(19/19)〇〇Chairperson〇

Representative Director, Executive Vice President

SHIMIZU Shinichiro

4

37

100%

(19/19)

〇

〇

〇

〇

Representative Director, Senior Managing Executive Officer

KIKUYAMA Hideki

6

16

100%

(19/19)Director and Senior Managing Executive Officer

TOYOSHIMA Ryuzo

3

36

100%

(19/19)Director and Managing Executive Officer

TSUTSUMI Tadayuki

1

7

100%

(15/15)

Independent Outside Director (Lead Independent Outside Director)

KOBAYASHI Eizo

Outside Director, Japan Exchange Group, Inc.

7

77

100%

(19/19)Chairperson〇

Chairperson〇〇

HATCHOJI Sonoko

Outside Director, Daicel Corporation
Outside Director, Maruha Nichiro Corporation

4

51

100%

(19/19)

〇

〇

〇

〇

Chairperson

YANAGI Hiroyuki

Outside Director, AGC Inc. Independent Non-executive Director,
Kirin Holdings Company, Limited
Mitsubishi Electric * Outside Director

1

40

100%

(15/15)〇Chairperson

〇

〇

〇

Independent Outside Director
Independent Outside Director

Management Experience Finance & Accounting Legal/Risk Management

Safety Management

Global Experience

Sales/Marketing

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

IT/Technology

〇

〇

〇
〇

〇

〇

Data Section

Director, Chairperson

Outside Director, Japan Airport Terminal Co., Ltd.*

Sustainability

UEKI Yoshiharu (September 16, 1952/ 69 years old)Name

Medium Term Management Plan

KOBAYASHI Eizo

UEKI Yoshiharu

Position at the Company

The JAL Group Value Creation StoryTOYOSHIMA Ryuzo

〇

〇
〇*
〇
〇*

〇

〇

〇

〇

〇

* Experience as senior management in an industry, based on Level 1 classification of the Global Industry Classification Standard (GICS)

27

JAL REPORT 2022TOP

JAL REPORT 2022

28

Chapter 2 The JAL Group Value Creation Story

1. JAL Group's Value Creation Story(1) Safety Charter(2) JAL Philosophy

3. Foundation for Value Creation

2. JAL Group's Value Creation Process(3) Divisional Profitability Management System(4) JAL Group Code of Conduct(5) Corporate Governance

KAMO Osamu

In principle, a person who does not fall under any of the following categories is
considered to be an independent person.
1. A person who is currently or has been in the past 10 years an executive* ofconsolidated subsidiaries in our company and our company.
2. A person who has fallen under any of the following (a) to (f) in the past three years.
a. A business partner or an executive thereof whose transaction amount with ourcompany for one business year exceeds 1% of our company or any of the saidbusiness partner’s consolidated subsidiaries in sales.
b. A major shareholder or an executive thereof whose ratio of funding to ourcompany is 5% or more.

OKADA Joji
KUBO Shinsuke

ForewordStandards for Independence of Outside Directors

Audit and Supervisory Board Members (as of August 1, 2022)

c. Major lenders to our company or an executive thereof.
d. A person who receives or belongs to an organization that receives donations
exceeding 10 million yen per year from our company.
e. A person who has received more than 10 million yen per year other than
remuneration as an officer, or a person who belongs to an organization that hasreceived remuneration in excess of 1% of its remuneration consolidated sales.
f. An executive who is assigned as an external executive of another company andalso the Director of the company.
3. A spouse or a relative within the second degree of kinship to the persons listed in 1
and 2 above.

The JAL Group Value Creation Story* An executive means an Executive Director or an Executive Officer

Progress in Strengthening Corporate Governance
Ahead of the establishment of the Corporate Governance Code, we established in FY2012 voluntary committees fornomination and remuneration, amongst others, as a company with an Audit and Supervisory Board, and have actively madeefforts to improve board effectiveness to strengthen governance in accordance with the Corporate Governance Code.

2012
SAITO Norikazu

KITADA Yuichi

Audit and Supervisory Board Member

Since joining the Company, he has worked mainly in finance andaccounting for many years and possesses extensive knowledge offinance, accounting, and investor relations. From 2014, serving as
Director, Senior Managing Executive Officer and Senior Vice
President of Finance and Accounting, worked intensively on
providing comprehensible and highly transparent disclosures to ourshareholders and investors, and contributed significantly to making
accurate management decisions on shareholder returns.

Since joining the Company, he has worked mainly in maintenanceincluding maintenance technology and quality assurance. Serving as
Executive Officer of Engineering and Maintenance from 2018, hesupervised the maintenance division of the JAL Group andcontributed significantly to maintaining and improving engineeringand quality. Since June 2020, as Managing Executive Officer ofEngineering and Maintenance, he has provided precise comments
at Board meetings and other meetings from the perspective of
maintaining flight safety based on his extensive frontline experiencein engineering and quality assurance.

Outside Audit and Supervisory Board Member/
Independent Director

OKADA Joji (October 10, 1951/ 70 years old)

Outside Audit and Supervisory Board Member/
Independent Director

Outside Audit and Supervisory Board Member/
Independent Director

Since joining Sanwa & Co. Tokyo Marunouchi Office (currently
Deloitte Touche Tohmatsu LLC), he has gained a wealth ofexperience, achievements and deep insight on accounting throughexperience in corporate audits, share listings, corporate
revitalization, M&A and other cases.

He possesses extensive experience and expertise as a senior
management executive and director of finance and accounting at a
general trading company. Through his experience as Audit andSupervisory Board Member of a general trading company and Chairof the Japan Audit and Supervisory Board Members Association, he
has gained a good understanding of governance and auditing
including risk management.

■FY2015
・Started Board Effectiveness Assessment■FY2017
・Commenced Board Effectiveness Assessment using a third party■FY2019・Strengthened the risk management meeting body
* Contains trends since relisting on the First Section of the Tokyo Stock Exchange in September 2012

Appointment ofCommittee Members

Number of Company
Attendance rate ofshares held (100 shares) Board meetings

Attendance of Board Attendance rate of Audit and Attendance of Audit andmeetings
Supervisory Board meetings Supervisory Board meetings

3

63

100%

(19/19)100%(15/15)

Audit and Supervisory Board Member

KITADA Yuichi

1

10

100%

(15/15)100%(11/11)KAMO Osamu

Attorney at Law, Managing Partner of Ginza Sogo Law Office.
Outside Audit and Supervisory Board Member of Azearth Corporation

6

81

100%

(19/19)100%(15/15)

Outside Audit and Supervisory Board
Member/ Independent Director

KUBO Shinsuke

Representative Partner, Kyoei Accounting Office Certified Public Accountant
Outside Audit and Supervisory Board Member, Kawasaki Kisen Co., Ltd.

4

49

100%

(19/19)100%(15/15)

OKADA Joji

Member of the Business Accounting Council of Financial Services Agency
Outside Director, Nippon Exchange Self-Regulation Organization

2

25

100%

(19/19)100%(15/15)

JAL REPORT 2022

■FY2021・Compliance with all principles of the (revised)
Corporate Governance Code■FY2018
・Compliance with all principles of the (revised) Corporate
Governance CodeCompliance with the Corporate
Governance CodeOutside Audit and Supervisory Board
Member/ Independent Director

Outside Audit and Supervisory Board
Member/ Independent Director

29

SAITO Norikazu■FY2014・To be chaired by a non-executive director■FY2017・Compliance with all principles of the
Corporate Governance CodeAttendance (FY2021)
Tenure (year)■FY2016
・Increased the number of Outside Directors from 2 to 3

■FY2021・Outside Directors shall account for 1/3 of thedirectors.
・Documented the establishment of a system withmultiple female directors

Corporate GovernanceCommittee

Skills Matrix
Management Experience Finance & Accounting

Legal/Risk Management Safety Management

Global Experience

Sales/Marketing

Data Section

Audit and Supervisory Board Member

Important positions concurrently held (* is a public company)■FY2012・Independent Outside Directors (2)Chair of the Board of
Directors

Since registering as an attorney-at-law in April 1973, he has
accumulated extensive experience and insight on compliance andcorporate governance, including guidance on compliance forgovernment agencies and companies and working in an
investigative committee on fraud. Since June 2016, he has
provided legal and auditing advice to the Company as an Audit andSupervisory Board Member.

■List of Audit and Supervisory Board Members
Name■FY2017・Introduced a new officer remuneration system to share interests with shareholders
・Created a succession plan for the President, etc.

Strengthening
supervisory functions

Improving board effectiveness

KUBO Shinsuke (March 4, 1956/ 66 years old)

Position at the Company■FY2021・Outside Audit and Supervisory Board Members
joined the Corporate Governance Committee as
observers

Institutional design as acompany with an Audit
and Supervisory Board

Sustainability

KAMO Osamu (March 25, 1947/ 75 years old)

Audit and Supervisory Board Member★2021 Revised the Corporate
Governance Code

Medium Term Management Plan

KITADA Yuichi* (June 22, 1960/ 62 years old)

2021

■FY2012・Established committees relating to nomination, officer remuneration, etc. chaired by an Outside Director

Composition of Directors

SAITO Norikazu (November 23, 1956/ 65 years old)

2018

★2018 Revised the Corporate
Governance Code★2015 Established the Corporate
Governance Code

Trends in the Corporate
Governance Code, etc.

Audit and Supervisory Board Members monitor important matters concerning corporate management, business operations and the execution of duties byreviewing important Kessai (written approval) documents, as well as participating in Board meetings and other important meetings. Furthermore, Audit andSupervisory Board Members, together with staff members of the Audit and Supervisory Board, conduct an annual audit of each business location, subsidiary
and affiliated company and report the results to the Representative Directors.
Audit and Supervisory Board Members also share information with internal audit departments and accounting auditors and hold regular meetings with Audit
and Supervisory Board Members of subsidiaries to improve and strengthen the auditing of JAL Group.
We provide Audit and Supervisory Board Members with corporate information, and opportunities for continuous participation in external training, affiliatedorganizations and such. Candidates for Outside Audit and Supervisory Member are elected from among persons with vast knowledge and experience invarious fields, and persons who do not qualify as highly independent within the meaning of “Standards for Independence of Outside Directors” established by
the Company are not elected. In addition, persons who hold concurrent positions in more than four listed companies excluding the Company are not elected
as candidate for Outside Audit and Supervisory Board Member. Outside Audit and Supervisory Board Members ensure sound management by conducting
audits from a neutral and objective standpoint, with the cooperation of internal audit departments and accounting auditors.

2015

IT/Technology

〇
〇

〇
〇

observer

〇

〇

〇

〇

〇

〇

〇

〇

〇

TOP

JAL REPORT 2022

30

Chapter 2 The JAL Group Value Creation Story

1. JAL Group's Value Creation Story(1) Safety Charter

3. Foundation for Value Creation

2. JAL Group's Value Creation Process(2) JAL Philosophy(3) Divisional Profitability Management System(4) JAL Group Code of Conduct(5) Corporate GovernanceSupport for Directors and Audit and Supervisory Board Members■Policy on decision of officer remuneration

Legal considerations are explained to Directors, as necessary,to ensure that they are fully aware of their duties, including
the fiduciary duties of the duty of loyalty and the duty of care.
They are provided opportunities for continuous participation inexternal training and affiliated organizations.
In addition to the provision of corporate information, Audit
and Supervisory Board Members are given opportunities toparticipate in external training and external organizations.

to the demonstration of a sound entrepreneurial spirit.
③ We will provide remuneration that is appropriate to managementin accordance with our business performance.
《Remuneration levels and remuneration composition ratios》① We will set appropriate remuneration levels with reference to thebusiness environment and objective remuneration data in themarketplace.
② Taking into account the business characteristics of the Company
and the effectiveness of performance-linked remuneration, fixed
remuneration and performance-linked remuneration shall beestablished as follows (Since FY2022):

Board Effectiveness Assessment
The JAL Group aims to increase corporate value over the medium- to long-term through a Board Effectiveness Assessment eachyear, with reference to the self-assessment of each Director and Audit and Supervisory Board Member, and a review of Board
operations to increase corporate value over the mid- to long-term.

■Framework for performance-linked remuneration

Standard in case of achievement in line with performance targets is 100%

30%

20%

Basic remuneration

Performance-linked bonus

Performance-linked sharebased remuneration* The above is a rough estimate and will fluctuate depending on the price of our company shares.

■Payment of remuneration to Directors and Audit and Supervisory Board Members (FY2021)
Position

Number of people

Total remuneration, etc.
(1 million yen)

Total remuneration by category, etc. (1 million yen)

Director

12244(including Outside Director)

(4)

(36)

(36)

(ー)

Audit and Supervisory Board Member

6

77

77

ー

(including Outside Audit and Supervisory Board Member)

(3)

(28)

(28)

Total

18

322

322

ー

ー

(ー)
ー

ー

ー

Challenges

Initiatives

Assessment

Appointment of officers:
Need to deepen
activities of
remuneration andpersonnel committees
and improve reporting to
the Board

Improve the content ofcommittee discussions
and report the review
process to the Board

Increased transparency
by deepening committee
discussions andexpanding reporting on
the process of reviewing
committee activities

Need to strengthenGroup governance fornew businesses throughmonitoring

Strengthen monitoringof new businesses fromthe perspective of
business, earnings andhuman resources

Need to hold in-depth
discussions on thelong-term vision andbusiness portfolio post
COVID-19

Need to strengthen
constructive dialogue
with shareholders

Verified progress of new
businesses andconfirmed future
direction Establishedand implemented
measures to strengtheninternal controls of the
JAL Group

Need to make continued
efforts to address new
risks such as businessexpansion and IT
security

Further strengthen risk
management

Develop strategies torealize a long-term
vision Including
sustainability

Established theSustainability Promotion
Council. Accelerated
discussions on climatechange and respect forhuman rights

Need to strengthen
oversight of initiatives toaddress sustainability
issues and businessrestructuring

Promote humanresource strategies inline with businessstrategies tocontinuously improve
human resource
capabilities

Improve provision of
information to individual
investors and strengtheninteractive
communication

Began accepting
advance questions andlivestreaming of theGeneral Meeting of
Shareholders. Begandisseminating
information using IR
mailNeed to improve
constructive dialogue inview of the growing
number of individual
shareholders

Enhance interactive
communication throughbetter information
dissemination and better
understanding andanalysis of needs

WEB

https://www.jal.com/en/outline/governance/#effectiveness【Response to COVID-19】

Earnings and financial condition
FinancingMain Agenda Items Discussed by the
Board of Directors
In FY2021, a total of 19 monthly Board
meetings and extraordinary Board
meetings were held.

【Management Strategy】

FY2021-2025 JAL Group Medium Term Management Plan
Formulation of Rolling Plan 2022
● ESG Strategy● Business Strategy (LCC, new businesses, etc.)● Finance Strategy
Made JALUX a consolidated subsidiary
Develop human resources to promote advancement of women
and women in management posts【Governance and Risk Management】

Aircraft accident report
Decision of new executive officers
Board Effectiveness Assessment
Compliance with the Revised Corporate Governance CodeResponse to priority risks
Strengthen internal controls of the JAL Group
Revise the officer remuneration system

Data Section

candidates with practical and diverse experiences, such as
management in a Group company and overseas assignments
and activities in external organizations, they acquire thenecessary grounding for management at an early stage.
To develop the next generation of executives including
Executive Officers, the Personnel Committee discusses
career path mapping, cross-functional rotation, external
networking and human resource pooling to promote diversity
and expand their capacity and perspectives.

Initiatives

For more information on the results of the 2021 assessment and future initiatives, please visit the JAL website.

Succession Plan for President and Other Leaders
The qualifications required of the President and otherleaders are as follows: “Persons with qualities to steadily
achieve positive results toward realizing the Corporate Policy
by working together with all employees based on a firm
commitment to flight safety, which is the basic foundationof business continuity for the JAL Group. They must also
display initiative in practicing the JAL Philosophy.
The Nominating Committee continuously discusses possible
candidates for President and other executives. By providing

Challenges

Sustainability

Basic
PerformancePerformancelinked
remuneration linked bonus share-based remuneration244ーー* 1 Remuneration, etc. for the fiscal year under review includes three(3) directors and one (1) Audit and Supervisory Board Member who
retired at the conclusion of the 72nd Ordinary General Meeting of
Shareholders held on June 17, 2021.
2T* he total amount of remuneration, etc. for directors does not include
salaries for employees who concurrently serve as director.
* 3 The total amount of remuneration of Audit and Supervisory Board
Members is "no more than 100 million yen per annum" (resolutionof the Extraordinary General Meeting of Shareholders held on July
10, 2012). Renumeration for Audit and Supervisory Board
Members is only fixed remuneration (monthly remuneration) froman independent standpoint, and the decision is made throughconsultation of Audit and Supervisory Board Members. The numberof Audit and Supervisory Board Members on the conclusion so theGeneral Meeting of Shareholders was five (including three Outside
Audit and Supervisory Board Members).

Dialogue with Shareholders

50%

Assessment Items

Performance-linked remuneration

Monitoring■ Performance indicators
・TSR (ratio to TOPIX Including Dividends)
・Consolidated ROIC
・Number of selected ESG stocks
・CO2 emissions per revenue to-kilometer

Medium- to Long-term Strategy■ Performance indicators
・EBIT*
・Individual performance indicators for each officer
We will take into account achievement status of targets regarding
flight safety.
* 40% is a financial indicator and 60% is a non-financial indicator.

FY2022Medium Term Management Plan

2. Performance-linked share-based remuneration
The number of shares to be granted as performance-linked share-based remuneration will vary from approx. 0~150
depending on the degree of achievement, with 100 as the number of shares to be granted in the case of achievement inline with performance targets. The performance evaluation period shall be three years, with performance for threeconsecutive fiscal years evaluated each year.

Board Composition

FY2021

1. Performance-linked bonus
The amount of performance-linked bonus to be paid will vary fromapprox. 0~150 depending on the degree of achievement, with 100 as
the amount to be paid in the case of achievement in line withperformance targets.

Fixed remuneration

In order to deepen their understanding of the Company, we
provide Outside Directors and Outside Audit and Supervisory
Board Members with safety education including a memorial
climb of Mt. Osutaka, a visit to the Safety Promotion Center,and visits of frontlines. We also provide advance briefings on
agenda items as necessary and opportunities and materials to
explain other matters at their request.

The JAL Group Value Creation Story《Basic Policy》① To achieve sustainable and steady growth and increase
corporate value over the medium- to long-term, we promotebusiness execution in accordance with the Corporate Policy
and management strategies, and strongly motivate Directors toachieve specific management targets.
② We will establish appropriate ratios for performance-linked
bonus linked to business performance, and for the purpose offurther promoting the alignment of interests of shareholders,establish appropriate ratios for performance-linked sharedbased remuneration linked to corporate value in accordancewith medium- to long-term performance, in order to contribute

Foreword

Officer Remuneration【Dialogue with Stakeholders】

Feedback on IR briefings, etc.
Customer feedback
Shareholder benefit programs and communication withshareholders【Decision and Oversight of Other Important Duties】

31

JAL REPORT 2022TOP

JAL REPORT 2022

32

Chapter 2 The JAL Group Value Creation Story

1. JAL Group's Value Creation Story(1) Safety Charter(2) JAL Philosophy

2. JAL Group's Value Creation Process(3) Divisional Profitability Management System

3. Foundation for Value Creation(4) JAL Group Code of Conduct(5) Corporate Governance③ Outside Directors Speak Out About the JAL Group

KOBAYASHI Eizo

Directors operates in a very open atmospheretechnology typified by aircraft, I wanted to use my own

compared to other companies. I speak frankly myself.

experience and knowledge in BtoC manufacturing, so I

Even today, there are active discussions about theaccepted the position of Outside Director.

aviation business, but when strengthening new

KOBAYASHI: I have been an Outside Director sincebusinesses in non-aviation areas, I think it would be

2015, the longest of the three. Until then, I had used

more effective if discussions are further deepened withJAL Group flights frequently for business trips and otherOutside Directors, who have experience in other fields

purposes, but after experiencing the pain of bankruptcy,

and industries.

I observed changes in employee mindset and behavior

KOBAYASHIi: Since the Board of Directors needs toat firsthand. I was interested in what process led to thisconsider various proposals in a limited amount of time,change. At the same time, the aviation industry was

we try to prioritize discussions according to the business

shifting from a supply-chain-driven paradigm to aenvironment. I also try not to read the atmosphere atdemand-driven paradigm of providing services while

Board meetings but instead feel free to express mystimulating and generating demand at customer

opinions. This is because I feel that if a director

touchpoints based on customers' needs. Amid all this, I

disapproves or gives a bold opinion, it will stimulatewanted the JAL Group to become more energetic and I

discussion.

Medium Term Management Plan

generation of employees. As the company handles

The JAL Group Value Creation Story

HATCHOJI Sonoko

HATCHOJI: I believe that the JAL Group Board of

Foreword

YANAGI Hiroyuki

UEKI Yoshiharu

challenges while handing down its brand to the younger

am here to help.

Enhance Board Effectiveness From an External
Perspective and Support Future Growth of the JAL Group
Amid tremendous changes in the business environment of the aviation industry, the JAL Group Medium Term Management
Plan is being put to the test on how growth strategies should be created. The three Outside Directors and Mr. Ueki, Chair of
the Board of Directors, discussed key themes for future growth of the JAL Group, such as what role Outside Directors
should play in enhancing the effectiveness of the Board, which manages the JAL Group, and how JALʼs vision should becommunicated through dialogue with stakeholders and markets.

UEKI Yoshiharu
Director, Chairperson

What are your thoughts on ways to revitalize andincrease Board effectiveness?
YANAGI: I think the current way of running the Board

UEKI: The JAL Philosophy Chapter 5, "Be Creative inhave also been put forward in an organized manner. The

Better Than Yesterday, Tomorrow Better Than Today,"

Important positions concurrently held (*isa public company)
Outside Director, Daicel Corporation
Outside Director, Maruha Nichiro
Corporation

Important positions concurrently held (*isa public company)
Outside Director, AGC Inc. IndependentNon-executive Director,
Kirin Holdings Company, Limited
Mitsubishi Electric* Outside Director

JAL Group is restructuring its business, and three"Conceive Optimistically, Plan Pessimistically, andfactors are essential when venturing into new territory:

Execute Optimistically," "Think Through to Visualize thepassion, uniqueness and logic. I think passion will gain

Results," "Decide and Act with Speed," "Faceimportance in the future. While figures such as business

Challenges with Courage," and "Aim High."

Currently, I only have opportunities to speak to

performance are important, it is difficult to come up with

If you think pessimistically from the conceptual stage,

management and heads of businesses, but I believe it is

new ideas if you seek results first. Management must

nothing new will come out, so it is better to bealso the role of Outside Directors to talk to young

cultivate a corporate culture that encourages employees

optimistic. But when working out figures for the plan, aFirst of all, could you tell us how you accepted theemployees, who actually run the business, to hear theirto think about the next action as the project progresses

pessimistic view is better. Once it is decided to put it intorole of Outside Director and what you feel about thethoughts, and to convey the views of management so

and act immediately if it fails.

action, believe optimistically that you can do it.

JAL Group?

that management and employees can grow in the same

I hope that more and more employees speak

During the six years that I served as President, the

HATCHOJI: I accepted the post because I was

direction.

passionately about their desire to create new

exchange rate fluctuated from 80 yen to 120 yen

interested in how the JAL Group, which had overcome

YANAGI: Originally, the JAL Group had the image of abusinesses in the JAL Group. It would be interesting if

against the dollar. Even if the core of business has notmany difficulties in the aviation industry, incorporated its

company that emphasized brand values, but I was

the Board would sometimes come up with surprisingchanged, the external environment will change rapidly.

experience and initiatives in its corporate DNA.

interested in how the company was embracing

ideas or passionately engage in discussions.

It's all about having the courage to persevere and keep

KOBAYASHI Eizo
Independent Outside Director(Lead Independent Outside Director)
Important positions concurrently held (*is apublic company)
Outside Director, Japan Exchange Group, Inc.

Utilizing experience and knowledge to contributeto sustainable growth of the JAL GroupJAL REPORT 2022TOP

JAL REPORT 2022

Data Section

Our Work" contains the philosophies, "Today Should Be

YANAGI Hiroyuki
Independent Outside Director

UEKI Yoshiharu
Director, Chairperson

Sustainability

and the content of discussions are very good. Proposals
HATCHOJI Sonoko
Independent Outside Director

Attendees

33

To become an organization that promotes active
Board discussions and encourages employees
to embrace challenges

34

Chapter 2 The JAL Group Value Creation Story

1. JAL Group's Value Creation Story(1) Safety Charter(2) JAL Philosophy

2. JAL Group's Value Creation Process(3) Divisional Profitability Management System

3. Foundation for Value Creation(4) JAL Group Code of Conduct(5) Corporate Governancethan FSC, as described in the Medium Term

employees?

KOBAYASHI Eizo
Independent Outside Director(Lead Independent Outside
Director)

Management Plan, namely LCC, Cargo and Mail, andYANAGI: In terms of dialogue with the market, it isOutside Directors sit on internal committees. Can

Mileage, Lifestyle and Infrastructure, address the seven

all about carefully explaining new business strategies

you tell us how committee discussions areissues such as safety and security, DX and humanand progress on business restructuring that the

progressing?

resources, establish a completely new businessmarket expects. Even if it takes time to produce

YANAGI: As Chair of the Nominating Committee, I

platform, and work on the three business areas andresults and the market doubts its feasibility, it isbelieve there are four issues to be addressed. First, theseven issues over the next five years in ways that areimportant to explain what progress has been madeup with changes in the environment at any cost.

election and selection process of a candidate tovisible.

and gain trust.

KOBAYASHI: Management needs to think about how

succeed the President.

HATCHOJI: About five years ago, overseas

much impact new businesses will have on performance.

Second, a framework to develop human resources toinstitutional investors accounted for nearly half of theI think that if we can continue to grow thriving

become future President, based on a matrix of businessbusinesses and build a team, or organization, to support

fields they have experienced. Third, deciding the best mix

underperforming businesses, we can let employees

for management, including Outside Directors. Fourth,work on new businesses. No project will go as planned.

deciding whether to reappoint the President. At otherwill have to think more about how to communicate

It is the responsibility of management to correct wherecompanies where I serve as Outside Director, thewith individual investors and how to explain our

things go wrong, implement the PDCA cycle, and build a

Nominating Committee has determined thegrowth strategy.

team that can support and make up for what is lacking

reappointment of the President as of several years ago to

HATCHOJI: We are going to invest a lot of energy, both

KOBAYASHI: Internally, the key is to ensure that JAL

in their activities.

strengthen governance. Maybe you should consider thesematerial and human, in new areas such as non-aviation

Group employees are fully aware of our business

UEKI: About 70% of the company's investments are inideas, too.

fields and LCC. It would be great if we could use thatstrategies and growth strategies. If management

aircraft, 20% in systems and about 10% in new

KOBAYASHI: It is important to share what is discussed

energy to nurture the seeds of the spirit or aspirations

and employees are convinced of the future direction,

projects. Since the JAL Group has little experience within the committee with other directors. You may need tothat still exist in those fields.

the 36,000 or so employees in the JAL Group will

new investments, Outside Directors provide various

set some criteria, such as a career path necessary for a

KOBAYASHI: What is clear is that there is no future formake their own sales pitch.

instructions on how to proceed with investments.

potential candidate.

the JAL Group unless the FSC business remains solid as

UEKI: In diologues with stakeholders, we must

KOBAYASHI: While the Board's basic stance has not

HATCHOJI: Publishing the rules also leads to betterthe core business. That's why it's time to redesign the

explain in our own words in a way that resonates

changed, the nature of discussions has changed

governance of the succession plan, including thefuture of FSC. We must first grow FSC and LCC for air

with ourselves so that our employees can work withsignificantly since the beginning of my tenure. At first, theselection of the President.

passengers as the platform for new businesses.

a sense of reality and our shareholders and other

Regarding non-passenger business areas, we will needinvestors can trust our growth strategy.

to assess and decide the need for any necessary action

KOBAYASHI: Despite hardships in the aviationby the company. It may be a good idea to consider how

industry resulting from the outbreak of COVID-19 in

HATCHOJI Sonoko
Independent Outside
Directorgrowing steadily up till now. Now, it is important to enter
new fields and create new businesses. You will need toshareholders make up 46%. In the past, IR was
mainly for institutional investors, but in the future, weyoung employees in their 30s and 40s, who will be the2020, all employees believed in the future of the JAL

do things differently, whether it's finding internal

future leaders, view the future of JAL and newGroup and persevered. The aviation industry is

resources, hiring outside talent, or partnering withbusinesses.

undergoing huge structural changes. The JAL Group

companies.

In non-air travel fields, cooperation of external humanvision is to grow while protecting the fundamentals,

The JAL Group has developed talented humanresources and partnerships with other companies are

such as safety, through collaboration with

important. A new business can only thrive after three

employees who have worked primarily in the airline

years at the best, and usually bloom years later. The

business, mid-career employees with experience inresources to support its future, so it is important tocultivate a corporate culture in which employees canchallenge themselves to do whatever they want without

Board must decide whether there are employees whoother industries, and employees hired overseas.

What are the pressing issues that the JAL Groupwill work in new businesses even if it takes time, and if

UEKI: Thank you for your time and your valuable

should address during the period of the Medium

there are none, we must hire people from outside andopinions from the perspective of Outside Directors.

Term Management Plan?

invest in management resources.

YANAGI: The first thing we need to do is to get backWhat do you think about dialogue with stakeholders

Data Section

fear of failure.

Fulfilling accountability on growth strategies
through dialogue with stakeholders

Sustainability

and international FSC business, which had been

JAL Group's shareholders, but now individual

Medium Term Management Plan

discussions centered on how to expand the domestic

YANAGI Hiroyuki
Independent Outside
Director

The JAL Group Value Creation Story

such as our shareholders, customers andForeword

we can work to expand the three business areas otherEngagement in the succession plan that will
determine the future growth of the JAL Group

into the black and resume payment of dividends. Then,

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Chapter 3 Medium Term Management Plan

1. Strategy – The Big Picture

Timeline

Medium Term Management
Plan-Rolling Plan 2022

Present

To further ensure the achievement of the Medium Term
Management Plan announced in May 2021, we updated theplan to adapt to changes in the business environment andcreated Rolling Plan 2022 in May 2022.
We will make concerted Group-wide efforts to implement
the Rolling Plan and achieve sustainable growth anddevelopment.

Early recovery from COVID-19

Bn JPYThe JAL Group Value Creation Story

Bn JPY

80
Bn JPY
2021

2023

2022

2024

2025

2030
JAL Vision

Achieve the Medium Term Management Plan and realize JAL Vision 2030

Managing Executive Officer
Senior Vice President of Corporate Strategy & Planning
Senior Vice President of Business Administration

2050
Net-zero CO2emissions

Accelerate strategy execution

Environmental Awareness and Strategic Outline▶Business Environment②Accelerate business restructuring and build a more

Environmental awareness when creating the Medium Term Management Plan (FY2021)

resilient business structure
We will transform the business model, such as growing andyen. However, with the global progress on vaccinations andexpanding new businesses in addition to our LCC and airline-

lifting of travel restrictions, the Japanese government has

related businesses, to build a more resilient revenue model

implemented various measures to stimulate demand forso that we can prepare for and respond better to all types ofdomestic travel and we are beginning to see positive signs ofchanges in the external environment. Rolling Plan 2022 sets

recovery. I feel that society is starting to shift towards the “withnew restructuring targets. Out of the FY2025 profit target of 185

COVID-19” and “post-COVID-19” eras.

billion yen in EBIT, we will increase profit in the Mileage, Lifestyle

Politics
 igitalization and regional revitalization
DEconomic reconstruction by promoting
Japan as a tourism-oriented nation• H eightened environmental regulations
such as greenhouse gas control

from 30% before the COVID-19 pandemic to 45% by 2025.

In May 2021, we announced a five-year Medium Term

To accelerate business restructuring, we feel that it isManagement Plan and moved forward to restructure ourimportant to strengthen cooperation and activities between

business model and implement ESG strategies. Given thebusiness domains. We will strive to maximize revenues, while

fast-changing impact of the pandemic and other external

keeping in mind what is “best for all” for the JAL Group.

from FY2022

In FY2022, international passenger demand is expected to beIncreasing importance of sustainability
Transition to a resilient society• A move from “mass” to “personal”•••

Technology
 igital acceleration and integration withD
the real world• B usiness model transformation with DX• N on-face-to-face touchless services
become a norm•

Changes in the business environment
JAL / Airline Industry

MarketSocietyLong-term damage to the airline
business

Structural changes in air travel demandand behavioral changes of consumers

Growing social awareness to achieve
the SDGs

Long-term effects of COVID-19 variants
Global destabilization especially in Europe• C hanging market conditions (fuel prices and foreign exchange)
•

•

•

•

New behavior patterns such as remote work
E-commerce and cargo demand remain strong••

ESG creates corporate value
Intensified global commitment to net zero CO 2 emissions ofpublic and private sectors

To build resilience and achieve sustainable growth,

Sustainability③V-shaped recovery after COVID-19

 orst negative growth since World War IIWLong-term economic stagnation risk
• Centralization to decentralization andmultipolarization••

changes, we updated the plan to ensure its achievement andformulated, in May 2022, a four-year Rolling Plan 2022 starting

Society and the Environment•

and Infrastructure business domain and improve the profit mix▶Medium Term Management Plan-Rolling Plan 2022

Economyaccelerate management strategy execution with ESG strategy at the corearound 45% of pre-COVID-19 levels and domestic passenger

Pursue ESG management to drive

ESG strategy growth and increase corporate value

demand to be 90%, with further recovery thereafter.
Through determined efforts to improve earnings and capture①ESG-centered values to drive management strategies

the comeback of air travel, we aim to get back into the black

Our ESG strategies are aimed at solving social issues andin FY2022 and achieve the FY2019 profit level of 80 billion yen

achieving the SDGs through our business activities. Rollingin EBIT.

Plan 2022 defines ESG strategy as the growth strategy

We will utilize our strengths, that is, our human resource

Uncertainty remains in the business environment due to the prolonged pandemic as seen by structural changes in air travel demand

towards 2030. We will continue to provide value to society

base and customer base, and work across the Group toand behavioral changes of consumers, global instability, and changing market conditions. Led by the growing momentum to achievethrough our business operations, thereby generating revenue

accomplish Rolling Plan 2022 and position ourselves for

the SDGs, companies and investors are becoming more aware of ESG.

and increasing our company’s value.

sustainable growth and development.

The airline industry is expected to grow strongly again in the medium- to long-term spurred by global economic recovery andBusiness Accelerate business model reform
strategy and build resilience

Finance Financial restructuring, growthstrategy investments and shareholder return

Data Section* EBIT of each business domain as described in this Chapter uses a simplified calculation method for internal management purposes and does not represent revenue or
profit of the business segment. In addition, classification of businesses does not correspond one-to-one with the air transportation business segment or other segments.

Medium Term Management Plancompounded by rising crude oil prices and a weakening

The three-point plan is as follows.

185

170

SAITO Yuji

prolonged pandemic, and unstable global conditions were

FutureRealize JAL Vision 2030

Sustainable EBIT improvement
Recover to FY2019 profit
level

FY2020The business environment continued to worsen due to the

Foreword―Accelerate management strategy execution centered on ESG strategy ―growth.
Business strategy, finance strategy and ESG strategy remain the pillars of our management strategies, but to adapt to the new
reality, we will pursue ESG-centered strategies. To achieve our management targets, we will tackle social issues through ourbusiness activities and implement business and financial restructuring.

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Chapter 3 Medium Term Management Plan

1. Strategy – The Big Picture

2. ESG Strategy

3. Business Strategy

4. Finance Strategy

Safety and Security

Work steadily towards their achievement by FY2025

Accelerate safety and security initiatives to realize JAL Vision 2030

We have established management targets for FY2025 in the areas of safety and security, sustainability, and finance, taking into
account the business environment, global trends, stakeholder expectations, their impact on our business, and their importance tomanagement. These are the key management issues and challenges of the JAL Group.

As mentioned in the Medium Term Management Plan, the JAL Group, as a leading company of safety, aims to increase its safety
layers and build a society where everyone can live safely and with peace of mind. To adapt to changes in the internal and external
environment, we will accelerate safety innovation, risk response strategies, creation of next-generation safety, and development of
human resources and culture as the basis of these initiatives towards the realization of JAL Vision 2030.

FY2025 Targets

FY2021 Results

Aircraft Accidents and Serious Incidents: 0(during the entire period of the Medium Term Management Plan)

2 cases

Environmental changes surrounding safety and security
JALグループは、事業を取り巻く環境、国際社会の動向やステークホルダーからの期待、事業を通じた影響度合い、経営にとってのRoll out our management strategy
Global risks and technology
重要性などをもとに、2025年度に達成を目指す経営目標として、「安全・安心」、「財務」、「サステナビリティ」のそれぞれに目標値を設Internal
External
environmental•

Drive ESG-centered management strategy

定し、最重要経営課題として取り組んでまいりました。
changes
Push forward with business model reform (expand business areas)•

Peace of Mind

Domestic +7.1pt
International +7.4pt

CO2Emission
Reduction

Total emissions: below 9.09 million tons

6.2 million tons

Reduction ofSingle-use
Plastic

Cabin and Lounge: Eliminate virgin petroleum-derived plastic
Cargo and Airports:100% eco-friendly
materials

25% abolished

Communities

Regional
Revitalization

Domestic passenger*2 and cargo transport volume: +10% vs. FY2019

PeopleDiversity andInclusion

Ratio of female managers in the JAL Group 30%

Environment
Sustainability
JAL

NPS*1 +4.0pt (FSC international/domestic)(sales margin)

10% or Higher in FY2023

Safety innovation

90% change

ROIC(Return On Invested
Capital)EPS

JAL(Earnings Per Share)

FY2023¥260

Pre-COVID-19
levelc.¥290 level*3

 ctively utilize cutting-edge digitalA
technology to improve the operational
performance of aircraft

Aircraft failure prediction technology (PDA, etc.)• Weather forecasting technology (en route turbulencemeasures)• Image recognition technology (improve engine internal
inspection)*3

Strengthen crew health care
—

*3

•
•

Fatigue risk management based on data analysis
Full-scale launch of pilot support program*1 Net Promoter Score ... Objective indicator of customer satisfaction (compared to the beginning of FY2021)*2 Passenger traffic growth by stimulating tourism demand and creating new flows*3 Negative EBIT and negative net profit in FY2021■F Y2025 target: Achieve a clean record free of aircraft accidents and serious incidents during the period covering the medium termplan, and create a comfortable world-class customer experience that provides peace of mind in all settings.
■F Y2021 results:
Safety: We fell short of our target due to two aircraft accidents that caused injury to persons on board from the shaking of theaircraft. In response, we stepped up measures to prevent injury caused by the shaking of the aircraft to protect the safety of ourpassengers and crew members.
Peace of mind: Customer satisfaction on both domestic and international flights exceeded our targets through JAL FlySafe and
JAL SMART AIRPORT services.
For our safety and security initiatives, please refer to page 40.

Sustainability■FY2025 targets: We established targets for four of the social issues defined as key issues.
■F Y2021 results:
Environment: We are making progress on carbon reduction and elimination of single-use plastics to meet our FY2025 targets.
C ommunities: Passenger traffic declined from FY2019 due to flight reductions as domestic passenger demand continued a slow recovery.
People: The ratio of female mangers in JAL Group rose 2.4 percentage points from FY2020 to 21.9%. We will continue to work toachieve the 30% target by FY2025.

Create next-generation safety■F Y2025 targets: We aim to achieve pre-COVID-19 levels of all indicators in FY2023 and maintain and improve them thereafter. In
particular, we aim to achieve Earnings Per Share (EPS) to counteract the stock dilution caused by the public offering in November 2020.
■F Y2021 results: Although we recorded a loss, we maintained our financial base as the foundation of a successful businessrestructure using hybrid financing.

Human resources and culture

Strengthen aviation security•E xpand into the air mobility business,leveraging know-how accumulated in airtransportation business (p.53)

Advanced AI-based security screening processImprove hygiene/cleanliness throughinfectious disease control (p.94)
Stronger response to cybersecurity risks•••

Encrypt and monitor communicationsS eparate and protect sensitive information such as customer data aintain networks in disaster andMemergency situations•P articipate in the development of national safety
standards and systems
Build a safety management system utilizing aviation
technologyE stablish a sustainable safety culture
utilizing diverse human resourcesP rovide managerial staff with safety education onorganizational accidents• P rovide young employees with safety education to learn
about recent accidents• P reserve and pass on accident sites and related facilities evelop BCP for earthquake in Tokyo and outbreak ofD
infectious diseases（p.100）• Establish 2nd Data Center in Kansai area
• Use drones to transport supplies（p.53）••

Pass on and continuously spread a culture and awareness to think on the basic foundation of safety and security
For more on our safety culture, please refer to page 21.

Food safety
To serve safe, delicious meals customers can enjoy with peace of mind in flight and inlounges, we implement a safety management system that covers the entire process frommenu development to provision. Under the supervision of the officers in charge, we areworking to ensure safe and secure air travel for our customers across their journey throughcross-functional coordination that includes food safety management departments, airport
departments, cabin attendant departments, and inflight meal caterers and suppliers.
Food safety management
JAL Group hygiene auditors who are knowledgeable of FSSC22000, an internationally-recognized foodsafety certification scheme, perform hygiene audits at our caterers and JAL airport lounges around theworld to ensure that hygiene standards are observed and appropriate risk measures are taken.

Allergy prevention

Data Section

For information on our sustainability initiatives, please refer to Chapter 4 Sustainability on page 63

Finance

Respond to diversifying risks

Sustainability

Safety andPeace of Mind

Diversification and emergence of global risks
Development and proliferation of digital technology

21.9%

—

FY2025•（as of March 21. 2020）—

9% in FY2023•

Passenger ▼59%
Cargo ▼34%•

Financeenvironmental
changes

Medium Term Management Plan

EBIT Margin

The JAL Group Value Creation Story

SafetySafety and
JAL Peace of Mind

Foreword

Management Targets

Food safety management

We provide allergen free in-flight meals with the utmost care so that passengers are served their requested meal. For example, our cabin attendants verballyconfirm the contents of the meal, each passenger is served by the same cabin attendant, and colored paper napkins are used for visual identification. We also
provide information on allergens and nutrients in compliance with the law and in an appropriate manner.

For our finance initiatives, please refer to Finance Strategy on page 59.

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Chapter 3 Medium Term Management Plan

1. Strategy – The Big Picture

2. ESG Strategy

3. Business Strategy

4. Finance Strategy

2. ESG Strategy
We will integrate ESG into our management strategies to drive corporate growth towards 2030. To realize
JAL Vision 2030, we will work on the theme "Solve social issues and create sustainable flows of people,
commodities and logistics."

JAL Group ESG Strategy

JAL Vision 2030

Create social and economic values through ESG strategies and increase
corporate value
Drive ESG strategy

Social value

Economic value

Sustainable flows of people, andsales and distribution channels

Realize
JAL Vision 2030

Realize long-term
growthStrategic upfront investments and costs
incurred (fuel-efficient aircraft, SAF *, etc.)

Assessed by 4 Priority Areas, 22 Issues,and c. 180 initiatives to achieve the SDGs

Drive ESG strategy to acquire
opportunities and reduce risks

Acquire opportunities■Safety and Peace of Mind ................. Build a society where everyone can live safely and with peace of mind
■Sustainability .................................................... Build a better future where everyone can feel fulfilled and hopeful

JAL Brand/
Aggregate market price2030 targets
Sales from new businesses

Increase sales

Increase
corporate value
The JAL Group Value Creation Story

Put ESG strategy at the core of our management strategy to drive growth towards 2030

Foreword

Drive ESG strategy to increase corporate value―ESG-centered growth strategy to increase corporate value ―Reduce risks
Investment and asset optimization+300 Bn JPY(vs. FY2019)

ESG Strategy (long-term business strategy)

Solve social issues and create sustainable flows of people, and sales and distribution channels
Reduce costs

For social issues to be addressed by the JAL Group (4 areas and
22 issues), see Chapter 4 Sustainability on page 63.

Social infrastructure

Wellbeing

Build sustainable air transport infrastructure

Build new social infrastructure with the strengths of aviation

Make everyday life and all life stages even better inimize environmental impacts
MProvide air transportation that issafer, more secure and gives morepeace of mind
LCC
• Continue to connect Japan with therest of the world
Cargo and • Expand regional route network
Mail•

Maintain high value-addedtransportation and logistics networks

Mileage

Air Mobility

Realize seamless transportation in
all regions to solve social issues

Commerce

Airport andMaintenance

Build transportation Infrastructure
to and from airports

Regions
and Travel

Promote the JAL Mileage andLifestyle Concept for the wellbeingof our customers and society

and improve productivity but also comply with future environmental regulations and reduce risks.
These efforts will enhance the JAL brand and increase our market value and corporate value.
① Increase sales

billion yen sales increase in new businesses in 2030 compared to 2019.

JAL REPORT 2022

fuel costs without the introduction of fuel-efficient aircraft.
Identify opportunities③ Improve productivity

The participation and retention of diverse human resources will increase
employee motivation and satisfaction, which in turn will attract evenmore talented human resources, thus creating an upward spiral of active
participation of diverse human resources. We will also revamp and improvebusiness processes with DX to improve employee productivity. Through these
initiatives, we target a 30% improvement in sales-per-employee in 2030
compared to FY2019.

① Investment and asset
optimization

Data Section

41

The introduction of fuel-efficient aircraft will reduce carbon emissions and fuelcosts. We aim for a 40 billion yen reduction in fuel costs in 2030 compared to

We aim to solve the following social issues through our cargo and mail, air mobility, and airport and maintenance contracted service
businesses
Maintain logistics networks：Solve labor shortage issues in the logistics sector by shifting from truck to air freight
Seamless transportation in all regions： Convenience in Mobility and Daily Life (p.97)
Build transportation infrastructure to and from ： Convenience in Mobility and Daily Life (p.97)
Support Japanese market entry of overseas airlines with airport and maintenance contracted services
We will work on the theme "make everyday life and all life stages even better” through our mileage, commerce, regional and travelbusinesses, and tackle the following social issues.
Achieve wellbeing with the JAL Mileage and Lifestyle Concept： Environmentally-friendly Activities , Ethical Consumption , Wellness (p.91)
Create new flows by enhancing regional attractiveness：Regional Revitalization (p.96)

Sustainability

Make everyday life andall life stages even better

We aim to solve the following social issues through our FSC, LCC and Cargo and Mail businesses.
Minimize environment impacts ： Addressing Climate Change (p.70), Effective Use of Limited Resources (p.79）
Prevention of Infectious Diseases (p.94）
Provide safe and secure air travel ： Accessibility (p.93),
Expand route networks connecting Japan and regional Japan with the world： Route Network Expansion (p.95),
Promotion of Inbound Tourism (p.95), Regional Revitalization (p.96)

Improving customer preference by solving social issues and creating air mobility
and cargo and mail demand will contribute to sales increase. We target a 300

Maximize regional attractivenessand value and create flows② Reduce costs

Build new social
infrastructure with thestrengths of aviation+30%(vs. FY2019)

When promoting ESG strategies, we will actively solve social issues to not only create opportunities to increase sales, reduce costs

Cargo and
Mail•

Build sustainable airtransport infrastructure

Increase freedom in management

Sales per employee

Improve productivity

FSC▼40 Bn JPY(Reduction effect if measures are not implemented)

Medium Term Management Plan

Climate change

Fuel cost reduction by updating tofuel-efficient aircraft

Assets such as low-noise fuel-efficient aircraft comply with the latest
environmental regulations and are expected to be serviceable over the longterm. We will also expand financing options such as SDGs bonds.

Reduce risks② More freedom inmanagement

By taking the lead in solving environmental and social issues, we can prevent
impacts and restrictions imposed by regulations.

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Chapter 3 Medium Term Management Plan

1. Strategy – The Big Picture

2. ESG Strategy

3. Business Strategy

4. Finance Strategy

3. Business Strategy

Build a resilient business structure with growth potential bypromoting Group management

We will accelerate business restructuring and create a resilient business portfolio.

EBIT targets and composition ratio by businessBusiness targets
Business expansion

Mileage, Lifestyleand Infrastructure

Portfolio management

Move into high growth areas and drive
business model reform

132 Bn JPY+15pts

FY2025 EBITFY2025 sales

65Bn JPY

330Bn JPY

FY2019-25 CAGR +9%
EBIT margin 20%

FY2019-25 CAGR +3%

Structural reform

30%

LCC

Business expansion

10%

 aximize sales through synergic effects
M• Minimize costs by improving efficiency•

Maximize profitability of the entire JAL Group across business areas

Expand new business areas using our strong
customer base and human skills as drivers

35%

Create Group-wide synergies• Design a business structure adaptive to the business environment• Optimize resource allocation

The JAL Group Value Creation Story

185 Bn JPY or more

Foreword

Strengthen Collaboration Among Business Areas

Accelerate business restructuring and build resilience

Full Service Carrier (FSC)

LCC

Cargo and Mail

Mileage, Lifestyle andInfrastructure

Safety and Peace of Mind

To respond to diversifying risks, we will deploy technologies developed in aviation in new business domains such as
air mobility.

Human

To create value, we will assign human resources to profitable businesses with growth potential. To improve
productivity, we will accelerate Group-wide initiatives such as the establishment of regional headquarters in Japan.

DX

To accelerate business restructuring, we will develop a cross-business database and analyze and utilize the data.

Sales

To unify customer touchpoints and promote sales functions in non-FSC businesses, we will shift from ticket sales tosolution sales using JAL Group assets.

JAL Group companies

To achieve business growth, we will increase revenues in each JAL Group company.

Realize high profitability anddouble the size of business

FY2025 EBITFY2025 sales

19Bn JPY

120Bn JPY

Medium Term Management Plan

Introduce a multi-brand strategy
for growing leisure and VFR*2 markets

EBIT margin 16%*2 Visit Friends and Relatives

70%

55%

Structural reform

Full Service Carrier (FSC)

Accelerate initiatives to increase
profitability and recover/increase demand
Improve profitability as the core business
FY2025 sales

1 Tn JPY and over
FSC + Cargo&Mail
FY2025 EBIT margin

FY2025*1 Before COVID-19: figures deducting impact of COVID-19
from FY2019 results (earnings forecast figures disclosed
at the announcement of FY19Q3 financial results (IFRS)

Mileage, Lifestyle, Infrastructure
LCC

FSC・Cargo and Mail

8% and overBusiness expansion

FY2025 EBIT

100 Bn JPY

Expand business with a new
business model
Increase profit through utilization of belly cargospace and freighter business in partnership
FY2019 –FY2025 sales CAGR

＋14%

Cost management

To keep JAL Group’s actual fixed costs at the 500 billion yen level, we will control costs across business areas.

FY2025 sales

200Bn JPY

To accelerate initiatives in each business and maximize JAL Group’s profits, we will promote Group management and strengthencross-functional cooperation beyond business boundaries. To achieve the optimal business portfolio and generate synergies
throughout the JAL Group, we will coordinate and support businesses focusing on the seven items shown in the chart above.

Topic

Data Section

To accelerate business restructuring, we set up specific targets in each business.
Leveraging the strengths we have cultivated as a full service carrier (FSC), we will increase the EBIT ratio of LCC and Mileage,
Lifestyle and Infrastructure by 15 percentage points compared to pre-COVID-19 levels and build a business structure thatwithstands changes in the business environment.
By expanding new business areas such as LCC and Mileage, Lifestyle and Infrastructure without reducing profits of FSC areas, wewill build a more resilient business structure.

JAL REPORT 2022

To improve operational efficiency and the “best for all,” we will reduce functional dispersion and functional
redundancy.

Cargo and Mail

Business restructuring targets

43

Corporate function

Sustainability

BeforeCOVID-19*1

We have established five regional headquarters that report to the President in Hokkaido, Tohoku, Chubu,West Japan, and Kyushu with the aim to improve Group productivity and shift to solution sales, thus clarifying
the business responsibilities of each region and building a management promotion system. We will create a
portfolio based on regional characteristics to maximize Group revenues.

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Chapter 3 Medium Term Management Plan

1. Strategy – The Big Picture(1) Passengers

3. Business Strategy

2. ESG Strategy(2) Cargo and Mail

(3) Mileage, Lifestyleand Infrastructure(4) DX Strategy

4. Finance Strategy(5) Human Resource
Strategy

Passengers
Global air transportation is a business that brings flows of people, commodities and logistics to every city and region of the world, and is essential
to the advancement and development of society in every aspect including economics, culture and politics. Therefore, to play an indispensable rolein society, we will make a firm contribution to the realization of a sustainable future.
Specifically, we need to make flights safer and more secure with little or negative environmental impact and expand regional route networks toconnect Japan with the world. Therefore, as a common initiative of our FSC and LCC operations, we will not only reduce CO2 emissions throughjoint SAF procurement with our global alliance and joint business partners, but also actively eliminate single-use plastics, reduce waste and foodloss, improve accessibility, ensure hygiene and cleanliness, and increase inbound demand and travel demand to regions in Japan.
Ross Leggett
Deputy Senior Vice
President, Route Marketing

Cargo and Mail

IWAKOSHI Hiroo
Senior Vice President,
Cargo and Mail Division

Mileage, Lifestyle and Infrastructure

OMORI Yasushi
Senior Vice
President, Mileageand LifestyleBusiness Division

Mileage and Lifestyle promotes the JAL Mileage and Lifestyle Concept
under the motto "make daily life and life even better with miles" for the
wellbeing of our customers and society.
We will create services to suit customers’ everyday life and life stages,
provide points for environmental-friendly activities, introduce a new
loyalty program, and expand e-commerce of ethically-sourced products
to increase corporate value, and solve social issues, thereby contributing
to a sustainable society. By further strengthening and developing
mileage, finance and commerce business areas, which thrived during
the pandemic, as pillars of the medium term non-airline businessstrategy, we will stand at the forefront of restructuring the JAL Groupand aim for an annual operating profit of 50 billion yen in FY2025,
double the figure of pre-COVID-19 levels.

Regions
There are many attractive regions in Japan, but they also have common issues such as depopulation and environmental problems. We aim
to contribute to regional revitalization by creating flows of people, commodities and logistics, and achieve the medium term target of a 10%
increase in passenger and cargo traffic by enhancing local tourism resources, creating programs such as workcation and agri-training,rethinking our brand, diversifying agricultural products, and developing new sales channels for cross-border EC.
"Cheer up your community! Connect smiles!" All employees will work together to achieve this goal.

HONDA Shunsuke
Senior Vice President,
Regional Vitalization
Division

Cater to a wide range of customer needs with our FSC and LCC lineup
JAL, as a full service carrier, provides and develops highquality products and services and an extensive networkwith convenient connections, and operates flights tomeet the volume and size of demand. We will deepen
airline partnerships to build a network that is essential
for business, tourism and daily life, and air links between
cities and regions in Japan with the world to contributeto stable flows of people and commodities.
To meet diversified customer needs for prices andservices, the JAL Group will offer a wider range ofprices and diverse services covering all domestic andinternational markets utilizing its three LCCs (ZIPAIR
Tokyo, SPRING JAPAN, Jetstar Japan). In particular,
the three LCCs aim to increase so-called “associateddemand” by offering reasonable prices for tourism andVFR* demand with growth potential, and making air
travel easier and more accessible.
* Visit Friends and Relatives

International

Stability

Joint Venture Partners

High

Full Service Carrier

GrowthPrice range
LCC

LCC

American Airlines
British Airways
Finnair
IberiaMalaysia Airlines

LCC

High

Low
Short
Domestic Flights

International
Flights

Long① Aircraft ーAircraft strategy to support sustainable growthーForm a network with 229 Group aircraft

Contracted Services

Steady flagship fleet upgrade

TAMURA Ryo
Senior Vice President,
Engineering and
Maintenance Division

How wonderful it would be to fly and go wherever you want to ......
the pandemic made these feelings stronger. In order to live up tothese expectations, we are working each day to provide unparalleledaircraft quality. I am confident that our maintenance engineers andtechnical staff will be motivated by the process to reach this goal,
which will in turn contribute to customers' safety and peace ofmind.
By putting these thoughts into practice when maintaining the JAL
Group fleet and serving overseas airlines and related businesses,
we will contribute to the safety and security of aviation in Japan.

216

211

Large

27

34

[A350/777]

Medium78

72[787/767]

61

54

[737]

32
18

32
19

FY2020

FY2025[E190/170][ATR/Q400]

Small
Regional
Propeller

777

A350

International: 777-300 ER
Domestic: 777-200/300/200 ER(777-200 ER transferred to domestic network)

International: A350-1000 (FY2023~)
Domestic: A350-900 (FY2019~)

Sustainability

MAEDA Atsushi
Senior Vice
President, Airport
Division

Domestic

Full Service Carrier (FSC)ABE Eri
Deputy Senior Vice
President, Regional
Vitalization Division

I believe that attracting inbound demand will become an increasingly
important measure to promote regional revitalization, which is a social issue.
We will build a stable and agile system that assures quality and issecond to none with safety as the major premise, and steadily provide
ground handling services for overseas airlines at airports throughout
Japan. In addition, we will support their entry to the Japanese market
and create flows of people, commodities and logistics by continuously
communicating the value and charms of regional Japan in collaboration
with local governments and related companies.
In addition to providing air transportation, the JAL Group will connect
regions across Japan with the world to and from airports and provide
ground handling services to contribute to the growth of inbound demandand promote Japan as a tourism-oriented nation.

Business portfolio

Medium Term Management Plan

Strong demand for cargo and mail is set to continue in the global
air cargo market. To respond to pre- and post-COVID-19 changes
in transport demand, we will improve our products and services,
particularly strategic items such as e-commerce, home delivery,
healthcare (pharmaceuticals and medical products) and food, which
are closely related to social life. In addition to using JAL aircraft, we
will maximize capacity through partnerships, thereby maintaining ourlogistics network.
Furthermore, we will provide long-haul transportation with freighters,in collaboration with our partners, as a new domestic transportation
business model and contribute to logistics stabilization.
Going forward, JALCARGO will continue to contribute to the sustainable
development of society by solving social issues through logistics.

By maintaining and expanding networks that connect Japan, and regions and cities in Japan with the world, theJAL Group will improve accessibility, vitalize regions and make air transport more sustainable. To achieve this,we will strengthen ties with partner airlines and build networks that cover all markets.

The JAL Group Value Creation StoryTOYOSHIMA Ryuzo
Senior Vice President,
Route Marketing

Foreword(1) Passengers ーAchieve sustainable growth with FSC and LCCsー

Message from the Officers

25% improvement in fuel efficiency(compared to conventional aircraft)

FY2020 shows the number of aircraft in operation, taking into account decommissioning.
38

Improve cabin comfort
with renewed cabin
configuration

LCC
SPRING JAPAN: Included only in FY2025 as it became a consolidated subsidiary in FY2021
Jetstar Japan: Not included because it is not consolidated

19

31
26
18

13

18

8

8

2025

FY20202

Air Mobility

45

Next-generation air mobility represented by drones and eVTOLs will not only contribute to environmentally-friendly logistics and transportation infrastructure but also help
create a disaster-resistant and resilient society through prompt emergency transportation of rellief personnel and relief supplies and also revitalize communities throughthe provision of new services.
However, for new mobility to take root in society, we need to ensure safety and security. In this respect, the JAL Group has the knowledge and technology to safeguard
flight safety, which we have cultivated over the years, and we believe it is our responsibility to take full advantage of this know-how to spread next-generation air mobility
across all regions of Japan.
Through the launch of a drone business in 2023 and an air taxi business in 2025, we will find new revenue streams through air mobility and create a sustainable society
where everyone can enjoy an enriched life.

JAL REPORT 2022

FY2025

We will respond to changes in the business environment suchas fluctuating demand trends by building a flexible aircraft
portfolio to strategically promote our FSC and LCC operations.
The JAL Group will form a network for FY2025 with 229
aircraft, an increase of 11 from 218 aircraft in FY2020. We
will increase FSC operations with 211 aircraft in FY2025 andimprove profitability.

FY2019

2020

2023

2023

2025

Data Section

NODA Yasushi
Senior Vice
President, Digital
Innovation Division

FY2020We will increase LCC aircraft from two in FY2020 to 18 aircraftin FY2025 and expand their networks.
Furthermore, we will steadily introduce the fuel-efficient Airbus
A350 to update our domestic and international flagship fleet,
reduce our environmental footprint and improve cabin comfort.

TOP

JAL REPORT 2022

46

Chapter 3 Medium Term Management Plan

1. Strategy – The Big Picture(1) Passengers

3. Business Strategy

2. ESG Strategy(3) Mileage, Lifestyleand Infrastructure(2) Cargo and Mail

(4) DX Strategy

4. Finance Strategy(5) Human Resource
Strategy

FY2021

FY2022～

Improve profitability during weak demand periods

Improve profitability and accelerate demand recovery and expansion initiatives

Medium Term Initiative

Promote low-environmental-impact product-service development andprovision

Foreword②Full Service Carrier (FSC) ーImprove profitability and accelerate demand recovery and expansion initiativesー

We will eliminate petroleum-derived plastics used incabins and lounges by FY2025.
We will change buffet style to mobile ordering inFull Service CarrierE xpand networks based on demand recoveryImprove customer preference by expanding fuel-efficient Airbus A350 services• Promote product-service development and provision with little or negativeenvironmental impact• F urther promote ESG strategies with global alliance and joint business partners••

Haneda and Narita to reduce food waste, and will
recycle and compost 100% of food waste generated
from in-flight meal preparation at Haneda and Narita.

The JAL Group Value Creation StoryR educed maintenance and operating costs by retiring the
Boeing 777 and introducing the Airbus A350
• Suspended unprofitable routes and utilized code-sharing• Introduced JAL SMART AIRPORT to hub airports in Japan•

Sakura Lounge* for international passengers atFurthermore, we will work together with ourcustomers to reduce our environmental footprint
by offering a carbon offset service for corporate■Review of FY2021

customers and expanding our “JAL Ethical Choice

We slashed costs during the prolonged pandemic, such as cutting maintenance and operating costs by retiring old aircraft and~Meal Skip Option~” service to all international

adjusting routes and flight frequency. At the same time, we strived to maximize revenues by assigning larger aircraft to meet demandroutes.

and flexibly adjusting flight frequency and flight schedules to attract passengers with connecting international flights. On domestic* Introduced to JAL First Class Lounge in March 2021

Mobile ordering screen in lounge

Amenity kit for Meal Skip Option users
The photo is for illustrative purposes.

routes, JAL SMART AIRPORT touchless and smooth services were introduced at five domestic hub airports (Haneda, Itami, New

Medium Term Initiative

Chitose, Fukuoka, Naha).

Medium Term Initiative

Expand networks based on demand recovery

Further promote ESG strategies with global alliance and joint business partners

We will strengthen our network with partner airlines to improve customer convenience, deepen our understanding of each other's

On international routes, we will resume routes and flights

In addition to joint SAF procurement in the U.S. with certain oneworld members, we will consider promoting SAF production in

based on demand recovery from COVID-19. In addition toareas with low manufacturing capacity and making strategic investments in SAF manufacturers.

capturing transit passengers between North America and Asia

Utilizing the alliance framework and joint businesses, we will consider promoting innovation and D&I through exchanges of humanon Narita routes, where demand has rapidly recovered, we

resources with diverse backgrounds and values, and a combination of know-how.

Medium Term Management Plan

ESG strategies and explore opportunities for collaboration.

will progressively resume flights to and from Haneda, whichwere scheduled to be expanded from FY2020, to improveconnections to domestic flights, thereby contributing tostimulating flows of people and commodities between regional
Japan and the world.
On domestic routes, we will maintain and expand networks as
an important social infrastructure. In particular, regional airlines
J-AIR, JAC, HAC, JTA and RAC have a social mission tokeep community lifelines open. We will therefore optimize their

ATR aircraft of JAC and HAC are low-carbon turboprop aircraft. JAC’s 11th ATR
delivered in April 2022 was given a special livery decorated with the words "ecoPROP"
and a heart-shaped leaf design to convey the message of preserving nature and passing
it on to the next generation. The JAL Group is maintaining networks and promoting
regional development in outlying islands with abundant natural resources, such as theWorld Heritage sites of Yakushima, Amami-Oshima and Tokunoshima, and Okinawa.

and communicating the charms of each region.
Furthermore, JAL and All Nippon Airways (ANA) will codeshare on outlying island routes through the five-member EAS LLP (Essential
Air Service Alliance LLP) framework, comprising JAL, ANA and three Kyushu-based regional airlines with routes to outlying islands,

On the launch of codeshare flights with Malaysian Airlines, our joint business
partner, on the Haneda-Kuala Lumpur route in August 2022, we jointly

Sustainability

networks and utilize the resources of each airline, while creatingpurchased SAF in the U.S. through the oneworld framework. SAF will be
loaded on scheduled flights from San Francisco in 2024, and will be expanded
to flights from Los Angeles and San Diego from 2027

JAC, Amakusa Airlines and ORIENTAL AIR BRIDGE. JAL and ANA will join hands to contribute to regional route network expansion
and regional revitalization by creating flows of people between cities and outlying islands.

Medium Term Initiative

Improve customer preference by expanding fuel-efficient Airbus A350 services

On domestic routes, we expanded our low-noise fuel-efficientVoice

In FY2021, Hokkaido Air System (HAC) completed aircraft upgrades to the latest low-noise, fuel-efficientA350-900 fleet to 16 aircraft and will gradually introduce the

ATR. With three ATRs, the Sapporo Okadama Airport-based airline connects six routes in Hokkaido (includingA350-1000 on international routes from 2023.

infrastructure. Through interactions with customers at our destinations, I feel that HAC’s role is expanding. I willwith future environmental regulations and the sustainable
preference and comfort to further capture business demand, an
important revenue source.

47

JAL REPORT 2022

Data Section

two outlying island routes) with one route in Tohoku and plays the role of community-based transportation

Environmental-friendly aircraft will contribute to compliancedevelopment of air transport. We will also improve customer

Working with local communities - Hokkaido Air System initiatives

continue to work with the local communities to design ways of solving their problems, such as creating venues
INOUE Atsuki
Manager, Corporate Planning
Department
Hokkaido Air System Co., Ltd.

to attract visitors with local businesses, improving multimodal transportation with airports in coordination withlocal transportation operators, and collaborating with local high schools.

TOP

JAL REPORT 2022

48

Chapter 3 Medium Term Management Plan

1. Strategy – The Big Picture(1) Passengers

3. Business Strategy

2. ESG Strategy(3) Mileage, Lifestyleand Infrastructure(2) Cargo and Mail

4. Finance Strategy(4) DX Strategy(5) Human Resource
Strategy

FY2022～

FY2021
Full-scale launch of three LCCs based in Narita

Realize high profitability and double the size of businessAircraft:10

Aircraft:18

LCC

aircraft Routes:11routes * Excluding Jetstar Japan

Aircraft routes:22routes••

improve profitability

Transport demand is diversifying even amidst tight capacity and demand. To meet social needs, we will
maximize capacity through airline partnerships, and strengthen the handling of strategic items that are closely
related to social life, such as e-commerce, home delivery, health care and food. We will also continue to provide
sustainable services by solving social issues related to logistics.

FY2025 plan, excluding Jetstar Japan

FY2021

FY2022～

Securely capture robust demand and increase profit

Expand business with a new business modelE xpand networks in Asia, North America and ChinaIncrease competitiveness and reduce environmental impacts
by introducing the A321 LR ade maximum use of our routes and other airline’s aircraftM
to meet robust cargo demand• Transported vaccines and other pharmaceuticals leveraging
our high quality transportation•

Cargo and Mail

■Review of FY2021
ZIPAIR Tokyo, Japan’s pioneer medium- and long-haul LCC, expanded its size of business while maintaining a first-mover advantage
by launching services to the U.S. west coast. SPRING JAPAN became a consolidated subsidiary to lead the way into the Chinese
inbound market, with expectations of recovery and growth, and Jetstar Japan helped stimulate recovery in tourism demand,
especially during the New Year holidays.

Medium Term Initiative

The JAL Group Value Creation Story pened US west coast route as Japan's first mediumO
and long-haul LCC• M ade SPRING JAPAN a consolidated subsidiary, createda new brand• R eviewed the number of aircraft and routes to•

Foreword(2) Cargo and Mail ーExpand business with a new business modelー③ LCC ーAchieve high profitability and double business size ーIncreasetransportation capacity on high demand and high growthroutes by strengthening partnerships• Strengthen handling of high-unit revenue cargo by building a production system that enables quality control and reduction of lead time
• Launch freighter business with Yamato Holdings in April 2024 (operated
by Jetstar Japan)•■Review of FY2021
In international cargo operations, amid strong demand for semiconductors and the shift to air freight due to sea freight disruptions,
the JAL Group endeavored to maintain supply chains for various customers and maximize revenue by operating freighters of

Expand Asia, North America and China networks

overseas airlines and cargo flights using JAL passenger aircraft. When transporting COVID-19 vaccines, we met requests fromsociety utilizing our high transport quality.

The JAL Group offers diverse products in growing andcreate people flow to regional Japan with environmentallyfriendly aircraft and reasonable prices to improve customer
preference as the customers’ most preferred LCC andCities in China
Set to become the world's
largest airline market in a
few years

increase profitability.
Specifically, the three LCCs will work to capture leisure andChina-specific LCC

Narita Airport

North America +Southeast Asia
U.S.: the world's largest
airline market
Asia=North America
demand: high growth
Japan's first mediumand long-haul LCC

VFR* markets, which are expected to grow in the postThe three Narita-based LCCs will utilize their route networks toBest domestic route
network from Tokyo
metropolitan area

create people flow between regional Japan and the world andcontribute to the expansion of inbound demand.
reciprocal frequency flyer benefits and the strengths andfeatures of JAL and the three LCCs.

Launch freighter business with Yamato HD in April 2024

Cities in Japan* Three LCCs transport passengers
from Narita Airport

Markets with stable profitability

Holdings, Inc. (Yamato HD) to develop a sustainable logistics
network in response to the “2024 issue.”use of freighters as a new transport mode will contribute toensuring stable transportation capacity and maintaining andimproving service quality. JAL and Yamato HD will promote
communities and solving social issues, and achieve further
growth by becoming the customer’s choice of airline.

Voice●Steadily implement the Medium Term Management Plan

To accelerate business restructuring, we will pursue growth initiatives.
High-speed air transport solutions can help solve the 2024 issue.

Build a sustainable logistics network throughfreighter operations leveraging the strengths of
JAL and Yamato HD

Meet customer needs with our partners
Taking into account the strong growth trend of air cargo demand especially from Japan, China and otherfreight charter demand, we were able to meet customer demand to the fullest and successfully secure capacity

notion toward LCCs, which are generally known for low service levels because the air tickets are inexpensive.

through negotiations, thanks in part to our long-standing partnerships since the pre-pandemic period. I feel that

Since cabin attendants concurrently handle ground services, we have the distinct advantage to apply the acquired

JALCARGO has a great responsibility to fulfill amid disruptions in logistics. Going forward, we will continue to
PU YONG
Cargo Route Marketing,
Alliance Officelisten to the customer’s voice in order to maintain supply chains, and by making agile adjustments to capacity, we
Data Section

ZIPAIR Tokyo's services onboard the aircraft are comparable to that of a full-service carrier; in terms of the seat

The EC market is growing at an annual rate of over 15%. To capitalizeon this strong demand for growth, it is urgent to address the 2024
issue.

as well as using JAL's route network with our own aircraft. Despite supply chain disruptions and strong air

so that our customers can purchase a blanket on their personal devices. Our goal is to remove any preconceived

proactively apply the experience I gained when conducting online internships for students.

Yamato Group

Asian countries to Europe and the U.S., we have been building higher capacity with partner airlines overseas,example, we do not provide complimentary blankets, but instead, provide advice to help navigate the online portal

skillset and knowledge during flight duty. When communicating with passengers and fellow crew members, I●Secure transportation capacity for growing EC

partnership by using each other’s resources to contribute tomanner, proactively create ideas and strive to understand what our customers genuinely prefer from an airline. For

NAKAJIMA Sayaka
Cabin attendant
ZIPAIR Tokyo, JapanThe 2024 issue is the problem of labor shortage and cost increasethat may occur in trucks and transport companies following therevised Labor Standards Act.

Sustainability

To become the customer's most preferred LCC
In order to embody ZIPAIR Tokyo’s NEW BASIC AIRLINE spirit, we communicate with our customers in a cordial

External
environment

In addition to trucks and other transport modes in Japan,* Visit Friends and Relatives

Voice●2024 Issue of Trucking Industry

In April 2024, we will launch a joint business with Yamato

which handle a large amount of long-distance logistics, the

COVID-19 future, and double the size of their business.

We will strive to strengthen the JAL Group LCC brand throughMedium Term Initiative

Medium Term Management Planchanging markets. Each LCC will promote ESG strategies towill meet their needs and contribute to the growth and development of society.

pitch and complimentary in-flight internet services. We will continue to strive to provide in-flight services that makea lasting impression, and we sincerely hope that our customers select ZIPAIR as their most preferred LCC.

49

JAL REPORT 2022TOP

JAL REPORT 2022

50

Chapter 3 Medium Term Management Plan

1. Strategy – The Big Picture(1) Passengers

3. Business Strategy

2. ESG Strategy(3) Mileage, Lifestyleand Infrastructure(2) Cargo and Mail

4. Finance Strategy(4) DX Strategy(5) Human Resource
Strategy(3) Mileage, Lifestyle and Infrastructure
The sharp decline in air transport demand caused by the pandemic made us reaffirm the importance of revenue
sources in areas other than air transport. In FY2021, we started to work on expanding the Mileage, Lifestyleand Infrastructure business domain to restructure our business model. We aim to grow the JAL Group, utilizing
the strengths of our customer base, brand and skills in each business domain; Mileage, Lifestyle, Regions, Air
Mobility, and Contracted Services (airport/maintenance/cargo).

① Mileage and Lifestyle

Regions•E xpand joint problem-solving projects with regional areas (local
governments and companies)

E xpanded services in daily life and all stages of life (marketed
JAL Denki and JAL Housing Loans)• M ade JALUX a consolidated subsidiary•

distribution channels to deliver regional products throughout the world including Japan.

D ouble profits by promoting the JAL Mileage and Lifestyle Concept

Medium Term Initiative

Expand the solution business in coordination with local communities

Regional attractivenessWe will promote the JAL Mileage and Lifestyle Concept of providing
Sales and profit growthservices in daily life, and expand areas for saving and using miles to

The JAL Group Value Creation Story

To solve regional problems, we will design purposeful tourism for people to visit regions and develop attractive products and

FY2022～•(Unit: Bn JPY)

Double profits through business expansion

EBIT

quality, convenient services to contribute to building a sustainable

FY2019

2021

2023

2025

through joint problem-solving projects with regional areas)

Sales: FY2019-25 increase +110%

People flow

society and promoting our ESG strategies.

Contribute to the wellbeing of our customers and society through the JAL
Mileage and Lifestyle Concept and double profits

JAL Mileage and Lifestyle Concept
In the Mileage and Finance business domains, we will launch new ~make everyday life and all life stages even better with miles~
services such as JAL Wellness & Travel, JAL housing loans, JAL■Promote regional attractiveness

Createadded value

Passenger
transport■Product development & branding・Add value to inspire customers to travel to regional areas, such as environmental
preservation activities and cultural experiential travel utilizing attractive regional
traditions, cultures, natural features, etc.

and JAL miles to further the JAL Mileage and Lifestyle Concept.

Permanent
people flows

specialty products

In the Commerce business domain, we welcomed JALUX to the
JAL Group to strengthen our EC business.

・Create and increase permanent flows of people to “my second hometown” andits associated demand in collaboration with local governments and companies

andpayment such as touchless and QR code payments. We will

Traveling with a purpose, such as JAL Agricultural Exchange, a short-term agritraining program, SDGs tours, and “my second hometown” tours

HR(cabin crew, etc.)

Branding

Increase
consumption

Cargotransport

・E xpand distribution channels in Japan for
local specialty products by promoting JAL
FURUSATO NOZEI・Promote cross-border EC initiatives andincrease exports of local specialty products

Sustainability

lineup such as insurance and securities, and promote cashless

JAL’s solutions

・Develop new value-added products by combining excellent local
commodities and JAL’s know-how
・In addition to planning and development, provide comprehensive
support from market research to sales and PR■Expand sales channels for local

Passenger
transport■New tourism

Going forward, we will improve our financial services and productRegional issues

Flows of sales and distribution channels

Tourism promotion project with local companies planned by JAL Furusato
Ambassadors (e.g. JR Hokkaido Rail Tour)

Denki (electricity) and the mutual exchange of Rakuten points

Guide：Create new flows (people, sales and distribution channels)

Medium Term Management Planin everyday life and environmentally-friendly activities, and provide high-Route network
Human resources, customer base, etc.

250

expanding partnerships with other industries and promoting DX, we will
introduce a new mileage program that allows members to earn points

JAL’s strengths

Regions

Tourism resources, local specialty products
Diverse traditions, cultures, natural features, etc.

500

promote the wellbeing of our customers and society. In addition toMedium Term InitiativeIncreased awareness of local products and expanded sales
channels (JAL FURUSATO NOZEI (hometown tax donation
program), EC for China, increased desirability of local
products by Furusato Cheering Teams)

We aim to revitalize regions while preserving the natural environment and creating lasting people flow.

FY2021

Mileage andLifestyle

FY2022～

FY2021•

Foreword② Regionsbuild a new EC website and develop ethically-sourced products
to expand our commerce business, in addition to increasing

Sales target

synergies with JALUX.
We will continue to promote the JAL Mileage and Lifestyle
Concept under the motto "make everyday life and all life stages
even better with miles."Voice

Management target

JAL REPORT 2022

Domestic passenger and cargo traffic経営目標
by FY2025 vs. FY2019 +10 %Meet the challenge to offer an attractive mileage program
I hold frank discussions with my colleagues every day on how we can create a mileage program that appeals to

Voice

Revitalize regions through cross-border EC
We feel that we can assist local business operators with procedures that are difficult for them, such as customs

customers. JAL Denki (electricity) which we launched with Kyushu Electric Power Company in April 2022 is aprocedures and contracts, so that they can sell attractive local products on our cross-border EC site (JAL Yusen,

service that connects everyday activities with leisure activities based on our aspiration to “provide our customers

an official mini-program in mobile app WeChat).

with more opportunities to earn miles and board JAL flights.” Going forward, we will boldly take on the challenge

We aim to revitalize regions by disseminating information on the regional features, culture and history of local

Data Section

51

売上高目標

Provide diverse services in everyday life and all life stages andexpand ways to earn and use milesof making JAL's mileage program more appealing by promoting environmentally-friendly services.
YONEKURA Sonosuke
Business Strategy Group
Mileage Business Division

By FY2025 10 Bn JPY

products to inspire customers to visit.
IHARA Yuichiro
Strategic Group, Business
Strategy DepartmentTOP

JAL REPORT 2022

52

Chapter 3 Medium Term Management Plan

1. Strategy – The Big Picture(1) Passengers

3. Business Strategy

2. ESG Strategy(3) Mileage, Lifestyleand Infrastructure(2) Cargo and Mail

4. Finance Strategy(5) Human Resource
Strategy(4) DX Strategy

FY2022～

FY2021

Air Mobility••T rialed the drone business in various regionsT rialed the business model of the air taxi business•

FY2022～

FY2021E stablish an Operation Platform Business and expand air mobility
marketContracted Services•

Foreword④ Contracted Services③ Air Mobility

Supported the growth of society and the airline industry through business expansion leveraging our strengths

We will develop a contracted services system enabling us to flexibly and steadily respond to the recovery in air travel demand, andand there are rising expectations of using next-generation air mobility to solve various regional issues and provide people with new

expand our services utilizing the strengths of an airline. We will also attract overseas airlines to airports in Japan, contribute toforms of transportation to enrich their lives. The JAL Group will be aware of their needs and contribute to solving social issues withcreating flows of people and logistics in Japan and overseas and support growth of the economy and the airline industry.

The JAL Group Value Creation Story

Underpopulated areas including remote islands with an aging and declining population face challenges such as access to shopping,our know-how on air mobility to improve mobility and convenience and live more sustainably.

Establish an operation platform and expand the air mobility market

Medium Term Initiative

Mechanisms to support safe operations
Promote the safe and optimized use of the sky

Business Profile and Services

Operational Support Platform BusinessDrone BusinessL ogistics network to support
everyday life
• A ssess disaster situations,emergency transport of
supplies•

Air Taxi BusinessR egional transportation
network• S upport mobility of essential
workers•

Use safety management
systemPromote collaboration
with partners

Develop business models by area

2023

2024

2025

Build anSMS

Launchservice

Improve capabilities
to expand markets

Establish operations
control system(Hyogo Prefecture / Oct 2021)

Build a business modelin outlying islands(Amami Islands, etc.) and
deploy in other regions

JAL's strengths～2030

Establish Platform Business

Testbusiness

Launchbusiness

Expand businessmodels by area

Realize MaaS in the sky forcoexistence of diverse air
mobility operations

Test
flights

Test business model(Mie Prefecture /Jan 2022)

Launchbusiness

Capacity that responds flexibly to changes in demand• Provide peers and public agencies with various services leveraging our facilities/equipment and human skills cultivated in airtransportation operations• Build a solid supply structure in alliance with partners to flexibly respond to changes in demand trends and seek larger shares

Ground Handling

MRO

Cargo warehouse

Steadily respond to air travel demand recovery, promote Japanas a tourism-oriented country and attract inbound demand

Offer various maintenance and technological services
from operations support to equipment services

Provide comprehensive logistics services to meetstrong cargo demand■Expand market share■Upgrade service■Enhance logistics service

 igh quality and stable services to meet variousHdemands (certified by ISAGO)• P ackaged services including administrative operations• A irline marketing to global airlines in collaboration
with local municipalities•

High density ofoperations

Execute test plan

Partnerships

Skills/assets

Expand air mobility market

Test pharmaceuticals
transport(Tokyo / Feb 2022)

Launch in EXPO 2025
Osaka, Kansai, operate
in rural and urban areas[Demand environment] Recovery of inbound demand, need for maintenance andtechnical services due to flight resumption, robust cargo demand

Provide services according to issues and needs of eachregionFY2022Contribute to the development of society and the airline industry throughbusiness expansion leveraging our strengths

Launch business andrealizesales of perations support including responses to irregularO
events and provision of parts, equipment and tools• M aintenance services for engines and landing gears• N ew businesses leveraging expertise in airtransportation (technologies, training programs,
logistics, etc.)•

Medium Term Management Plan

S afety management and operations
control support services• O ptimization adjustment of high density
operations• O perator training program•

Medium Term InitiativeE xtensive contracted services of cargo handling
mainly at hub airports in Japan• S trengthen comprehensive logistics services usingcargo warehouses• Transport safety and quality leveraging technologicalsupport•Create flows of people and distribution channels

50 Bn JPY

Expand contracted services

Sustainability

Growth of society and the airline industry

The JAL Group has been actively participating in drone Proof of Concept flight tests in remote islands and urban areas and eVTOL
studies to turn them into businesses. We will utilize the know-how we have cultivated in the air transportation business to draw apicture where drones and eVTOLs play an active role in society, based on a flight management framework and system, and play a

Sales target

売上高目標+50％ increasevs. FY2019 by FY2025

leadership role in new markets. Aiming to build a world where different types of air mobility move around, we will develop a platformthat supports safe and smooth operations so that more operators can enter into air mobility and ensure safe operation.
For more information, please visit the JAL website.
WEB

Voice

https://www.jal.com/en/air_mobility/

Voice

Build a society where everyone can live comfortably
Although difficult decisions must be made at times due to speed inherent in new businesses, we aim to build
a world where drones and eVTOLs operate safely and efficiently using JAL’s operations control and safety
management system cultivated in the airline business, and build a society where everyone can live comfortably in

KINOSHITA Hayato
Air Mobility Creation Department
Digital Innovation Division

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JAL REPORT 2022

coordination with local governments and companies

Zhao Danyang
Customer Sales andContracts Group
Ground Handling Strategy

To prepare for recovery in air transportdemand, we evolved traditional maintenancepractices with DX and other technologies.
At Narita, we made progress last year withquality control by developing a document
and qualifications management system,
which is less prone to human error, as theforms and systems of each customer airline
are different.
Going forward, we will continue to further
NOZAWA Fumiaki
Customer Maintenanceenhance JAL's technological capabilities
Department
cultivated over the years, serve our
Narita Aircraft Maintenance customers sincerely, and create an
Center (NMZ)
organization that flexibly meets customer
JAL Engineering Co., Ltd.
needs.

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JAL REPORT 2022

Data Section

We are preparing to launch a platform to manage and support drones and eVTOLs in an integrated manner.

We had a strong desire tosee more overseas carriers
fly to Japan, so we opened aconsignment business website
in Japanese, English, Chineseand Korean for overseas airlinesthat are thinking of entering theJapanese market. By promoting
our high quality services, we havereceived many inquiries. Looking
ahead to the recovery andgrowth of inbound tourism, we
will steadily fulfill our mission ofconnecting Japan with the world.

54

Chapter 3 Medium Term Management Plan

1. Strategy – The Big Picture(1) Passengers

3. Business Strategy

2. ESG Strategy(3) Mileage, Lifestyleand Infrastructure(2) Cargo and Mail

4. Finance Strategy(5) Human Resource
Strategy(4) DX Strategy

Foreword(4) DX Strategy ーBuild and utilize Big Data to accelerate business restructuringーBusiness restructuring through DX
Expand customer base

Expand service area
We will realize the JAL Mileage and Lifestyle Concept of offering

We will centrally manage JAL Group member IDs and link them todiverse services in everyday life and all life stages and expand

member IDs of other companies. By expanding the membership baseour service area, in collaboration with new businesses and otherto non-airline businesses, we will be able to reach out to customers

companies’ services. One member ID will enable the use of a various

who seldom fly and expand our customer base. Customers will beservices, increasing the use of mileage and making it more appealing

able to use JAL services with member IDs of other companies.

The JAL Group Value Creation Story

We will apply our know-how on customer data analysis
and utilization developed in the FSC business toother business areas such as Mileage, Lifestyle and
LCC, speed up business restructuring through DX toaccelerate growth, and tackle social issues.

to customers.

NODA Yasushi
Executive Officer
Senior Vice President,
Digital Innovation Division

Expandservice area

Expandcustomer baseService Platform collaboration

DX target: Maximize CX and EX

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JAL REPORT 2022

Next-generation
IT platform

Digital transformation (DX)
Digitalize business processes

Open Innovation

Maximize(Employee
Experience)

Collaboration

Collaboration

Data Sharing

Other companies’
services
Continuously improvethe employee experience

Build a centrally managed
JAL ID platform

Develop DX
human resources

Develop Big Data

For more information on JAL Innovation Lab, please visit the JAL website.
WEB

Other companies’
customer base

Data of our company and other companies

https://www.jal.com/en/innovation_lab/#/▶To promote DX
To achieve our targets, next-generation IT infrastructure, open
innovation, and the development of DX human resources are
essential.
①Next-generation IT infrastructure
Strengthen security and data infrastructure.

②Open innovation
We will utilize the JAL Innovation Lab, the base for value
creation and business development, and accelerate cocreation of new value (solutions, products, services) together
with other industries through cross-organizational initiatives
and Lab Alliance.
③Development of DX human resources
We will develop human resources group wide, who arecapable of driving DX and business creation from threeperspectives: education, assignment, and recruitment.
By investing in human resources, we will further evolve
our intellectual capital, that is, know-how on services andtechnology, and accelerate business restructuring throughbusiness expansion.

Analyze and utilize data using AI

Create Value

Develop new productsthat meet customer needs
Expand service lineup

Develop Big Data
Analyze and utilize data using AI

Create value

Create new businesses
using customer data
Build new business models

Personal marketing
Tailor proposals to fit customer needs

By expanding our customer base and providing new services in airline and non-airline business areas, we will generatesynergies and gather and accumulate more customer data. We will work on Big Data integration to bring data gatheredfrom other company systems to make it more valuable for us, and analyze and utilize Big Data with AI, thereby
strengthening our own system.
Data-driven product development will enable us to better meet customer needs, create businesses in both airline andnon-airline domains, and boost our personal marketing strategy to offer better customer solutions.

Data Section▶Accelerate business restructuring through DX
To adapt to challenging situations such as the COVID-19
pandemic, there is an urgent need to build a resilient businessstructure with growth potential. We will therefore acceleratebusiness restructuring through DX.
Together with our diverse workforce, we will drive business
innovation utilizing digital technology and data, and create
Group-wide synergies, cross-industry ecosystems, and newvalue.

Create a newcustomer experience

JAL Group customer baseEX

Technology

Maximize(Customer
Experience)

Realize JAL Mileage andLifestyle Concept

New businesses

Operation
Process

Sustainability▶Review of FY2021
We worked on maximizing CX and EX through digitalization.
For example, we completed the deployment of JAL SMART
AIRPORT to domestic hub airports and installed touchlesscheck-in kiosks to welcome guests in a hygienic and clean
environment.
We also diversified workstyles and improved productivity bycreating an environment that enabled remote work during the
pandemic, such as programs to support remote work andavatar robots on airport frontlines. We will apply the strengths
developed through these initiatives to accelerate businessrestructuring.

CX

Human resources

Medium Term Management Plan

The targets of DX in the Medium Term Management Plan are
to maximize CX (Customer Experience) through value creation
and unparalleled service, and to maximize EX (Employee
Experience) through workstyle innovation so as to improvebusiness quality and productivity.
To maximize CX, we will improve service quality and evolve
personalization by expanding digital touchpoints such as
mobile apps. To maximize EX, we will improve productivity
through business sophistication in data preparation,acquisition and sharing, and AI- and RPA-based automationand improved efficiency. Maximizing EX will increase
employee motivation and productivity, which in turn willcontribute to service development and service quality,
thereby maximizing CX and creating an upward spiral of EX
improvement.

Customer
Journey

ID collaboration

We will accelerate business restructuring through a positive spiral of expanding our customer base and service area,building, analyzing and utilizing Big Data, and improving services.

The JAL Group will meet the challenge of value creation
through DX, fusing human resources and technology.

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56

Chapter 3 Medium Term Management Plan

1. Strategy – The Big Picture(1) Passengers

3. Business Strategy

2. ESG Strategy(2) Cargo and Mail

(3) Mileage, Lifestyleand Infrastructure(4) DX Strategy

4. Finance Strategy(5) Human Resource
StrategyーConsolidate the talents of our diverse workforce, our greatest strengthー

Executive Officer
Human Resources DivisionPlacement and assignment■ Assign human resources in charge ofbusiness model reform•Increase personnel in growing business areas■ Introduce a new evaluation system

to encourage challenges in growing
business areas••

SAEDA Naohito

Continuous productivity growthE xpand the reach of our job posting through open
recruitment
Introduce a performance-linked, performance-based
remuneration system

Recruitment and development■ Recruit and develop human resources

according to diversification of businessareas

 ctively recruit diverse human resourcesA• E xpand practical experience through transferring tocompanies outside the Company or within the Group• Invest in human resources•■ Improve employee engagement by

increasing motivation••

Business process■ Establish a system to accelerate Group-

wide initiatives••

overlapping functions■ Improve operational efficiency using

digital technology••

 esign new career paths
DProvide appropriate employee returnE stablish regional offices in JapanIntegration and consolidation of distributed,

Achieve business sophistication using operational dataProductivity growth through business processtransformation＜Assign human resources to growing business areas＞<Highly engaged employee percentage*1><Increase of per capita sales>(vs. FY2019)(vs. FY2019)(vs. FY2019)

Increase of 3,000employees in FY2025

For details on Human Resource Development, please refer to page 87.

■Promote D&I・DX

FY2025 10pt improvement

・Promote the active participation of diverse human resources such as women,
non-Japanese, senior human resources and develop workstyles
・D evelop DX human resources to promote business development and problem solving

The JAL Group Value Creation Story

We will actively invest in human resources to maximize
their talents and be the driver of sustainable growth anddevelopment.
We will consolidate the talents of our diverse workforce,
our strength, and accelerate management strategy
execution through joint efforts

Create new value

Foreword(5) Human Resource Strategy

FY2025 15% increase<Ratio of female managers in the JAL Group>

End of FY2021 21.9%→ End of FY2025

30%*1 Percentage of employees who responded favorably to the Employee Engagement Survey

In FY2021, the JAL Group continued education and training

In creating the human resource strategy for Rolling Plan 2022,

courses and secondments to external entities to make use of

we focused on two key points: value creation and continuous

underutilized staff resulting from the sharp decline in demand

productivity growth.

during the pandemic. Training hours per employee increased

To diversify revenue streams through business restructuring,

2.2 times compared to pre-COVID-19 levels, and external

which we will work over the medium term, we must challenge

secondments averaged 1,600 employees a month. Byvalue creation in non-airline business domains. We will thinkacquiring new experiences and knowledge, each employee

out of the box to develop and nurture human resources whoachieved personal growth. In FY2022, to take the offensive as

meet challenges and create value. We will also embed an

demand recovers, we will accelerate business restructuringorganizational culture of “challenge without fear of failure andand the solutions business through business activities, putting

never give up till the end.” Furthermore, we will continuously

ESG at the core of the three management strategies asimprove productivity so that we may flexibly respond tooutlined in Rolling Plan 2022.

the increased workload caused by demand recovery andOur human resource strategy was established, recognizing

environmental changes.

that human resources are our most important asset to support

Specific measures will be implemented in four areas: assign

JAL Group’s value creation story. In preparing our strategy, we

human resources to growing business areas, hire diverse

made a quantitative comparison of the actual and ideal picture

human resources and provide personal growth opportunities,of our human resources, created concrete measures to close

restructure business processes, and promote key initiatives. To

the gap, and adopted the outcome to establish our medium

accomplish this, it is important to gain empathy of JAL Vision

term targets.

2030, and encourage autonomy and motivation within our

We will steadily implement our human resource strategy,

employees to reach our goal. Therefore, "boosting employee

maximizing the talents of our diverse workforce, andengagement and motivation" will be a key initiative, and weaccelerate management strategy execution through joint

will assist them in furthering their career and invest in humanefforts.

resources.

Strategy Details■Assign human resources in growing business areas
FY2025 target
Assign an additional 3,000 employees in growing business areas(vs.FY2019)■Business process reform
FY2025 target
Increase per capita sales: 15% increase (vs.FY2019)

We will establish a human resources system to expand growing businesses suchas LCC and Mileage and diversify revenue sources. We will shift employees fromprimarily FSC to growing business areas, resulting in an additional 3,000 employees
in growing businesses with expectations of revenue increase, in FY2025 (vs.
FY2019)We will continue to expand job offerings and promotions in growth areas to motivate
employees and introduce a performance-based remuneration system for posts
requiring advanced expertise, creativity, and autonomy.

We will reduce man-hours and improve productivity while increasing sales throughbusiness process reform.
In the production expansion phase of demand recovery, we will consolidate
overlapping work in business support departments in the JAL Group, improve FSC
business efficiency with digital technology, and minimize input. At the same time,
we will establish regional offices in Japan to maximize regional profit and improve
employee capabilities through human resource investments, and maximize output.

■Hire diverse human resources and provide personal
growth opportunities■Key initiatives ～D&I & DX～

FY2025 target
Increase highly engaged employees by 10 percentage points(vs. FY2019)
To diversify our business areas and contribute to sustainable growth anddevelopment of the JAL Group, we will hire human resources with diverse
knowledge, and enhance employee capabilities and employee engagement throughactive human resource investments.
Specifically, we will hire midcareer and experienced professionals throughout theyear and people with skills for specific jobs. We will also provide practical experiencethrough internships and internal and external secondments, and increase internaland external training opportunities to diversify their knowledge and experience.

Sustainability

Strategic Outline
Medium Term Management Plan

▶Review of FY2021 and FY2022 Initiatives

FY2025 target
Ratio of female managers in the JAL Group: 30%(FY2021 result: 21.9%)
We will continuously promote D&I and DX as key initiatives of our human resource
strategy.
We will break away from stereotype thinking through diverse workstyles with adiverse workforce transcending gender, culture and occupation barriers, andcreate innovation by fusing human resources with DX to create value and improve
productivity.
For details on D&I, please refer to page 89.

Data Section

Basic concept of human resource investment
The JAL Group has established a system to link key components of human resource development such as recruitment, assignment, evaluation, and training, and maximize
human resource value. We innovated workstyles to increase employee motivation regardless of gender, nationality, age and other personal attributes, and actively invested
in work environments and digital devices, among others. We will continue to actively invest in human resource development and improve workplaces to maximize diverse
talents, create value and improve productivity.
For details on Human Resource Development, please refer to page 87.

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58

Chapter 3 Medium Term Management Plan

1. Strategy – The Big Picture

2. ESG Strategy

3. Business Strategy

4. Finance Strategy

4. Financial Strategy

KIKUYAMA Hideki
Representative Director,
Senior Managing Executive Officer

Strategically allocate resources to build risk tolerance and capitalefficiency
End of
FY2021

Build Risk
Tolerance andCapital Efficiency• Build risk tolerance•M aintain and improvefinancing capabilities• Improve capital and asset
efficiency

Resource Allocation▶Summary of Financial Year 2021
This fiscal year was a tough year again for the JAL Grouppandemic. Although the latter half of the year saw a temporary
recovery of domestic demand, demand saw a downturn withthe spread of new variants, leading to a volatile environment.
Amid this environment, the JAL Group strived for improved
profitability by increasing revenue through the strong cargodomain, controlling variable costs through agile adjustment ofcapacity, decreasing executive compensation and decreasing
fixed costs including bonuses for employees.
In terms of finance, we conducted a total of 441.9 billion yen
of debt financing, including 350-billion-yen worth of hybrid
financing. We have not only secured enough liquidity at
hand but have strengthened our financial structure without
diluting our equity, and secured investment capital to realize
strengthened our risk-tolerance through these factors andintroducing low carbon-emitting, low-noise aircraft.
Through the growth of 3 non-full service carrier domains ofcargo/mail, LCC and Mileage/Lifestyle/Infrastructure, the JAL
Group will conduct diversification of revenues and profits andbuild a business structure that is less reliant on full-service
carrier.
As for financial strategy, our policy of aiming for a balanceof risk tolerance and capital efficiency, while strategically
Operating in the air transportation industry with high volatility,
it is essential to keep a high level of risk tolerance for stable
management. Therefore, we will initially prioritize a restructuringof our financial foundation such as a shareholder’s equity ratio
of about 50% (based on credit rating evaluation), and zeronet interesting-bearing debt by the end of 2025. Thereafter,
as cash flow generation recovers, we will move on to a newphase where capital allocation will be gradually directed▶Toward Financial Year 2022 and beyond

growth. Through these initiatives, we will strive toward

demand is steadily recovering, and with factors such as theeasing of border restrictions, a rapid recovery of demand is
expected.
Regarding the full-service carrier domain, the JAL Groupwill swiftly recover capacity through the A350 aircraft that

Shareholder Return•D ividends with focus on

Stability

Equity ratio
41.1%

Credit rating

Maintain
A rating(credit rating)

Secure and maintain 5.0~5.6 months worth ofpassenger revenue• Aim for approx. 50% equity ratio (credit rating)• Aim to achieve zero net interest-bearing debt by the end of FY25

Aim for A flat rating

Capital efficiency

Achieve, maintain and improve
ROIC*1 9%, ROE 10% or above

Capital allocation

Prioritize restructuring of financial structure
Promote investment for sustainable growth

Financial discipline

Secure sufficient free cash flow for each fiscal period

Dividend

Aim to resume dividends by
the end of FY2022

Stable dividend payout
ratio of over 35%

stability and consistency•P ayout ratio: 35% or higher• F lexible buyback to enhance total return ratio

Total return

Flexibly consider buyback*1 Return on Invested Capital ＝EBIT (after tax) /Average fixed assets at the beginning and end of a fiscal year(*2)*2 Fixed assets＝Inventory assets＋Non-current assets－Deferred tax assets－Net defined benefit asset

allocating our management resources, has not changed.

introduced new fuel-efficient aircraft for future growth.

The effect of the pandemic is steadily slowing down. Domestic

sustainable growthCredit facility of
300 bn JPY

toward shareholder returns and investment for sustainable

Given our experiences with the COVID-19 pandemic, we will prioritize restructuring our financial foundation for increased risk
tolerance, then transition to the phase of shareholder returns and active investment of management resources toward sustainablegrowth.
In terms of liquidity at hand, we will secure 5.0~5.6 months’ worth of passenger revenue in order to tolerate large-scale pandemics
like the COVID-19 pandemic. To increase capital efficiency, committed credit lines will also be utilized. In addition, a healthy financial
structure and increased fund-raising ability will be aimed through a shareholder’s equity ratio of 50% (based on credit rating evaluation),

Sustainability

sustainable growth post-COVID-19. We have steadilyGroup will conduct ESG management through proactively• Observe financial discipline• Allocate resources optimally•P romote investment for494.2 Bn JPY

Sustainable growthphase

Medium Term Management Plan

and the aviation industry due to the prolonged COVID-19

differentiate us from our competitors. In addition, the JAL

Liquidity

Financial restructuring
phase

The JAL Group Value Creation Story

The JAL Group will strive toward restructuring the financial
foundation, strengthening risk tolerance, preparing forthe post-COVID-19 sustainable growth phase and therecovery of cash-flow creation. Under such strong financial
foundation, management resources will gradually andstrategically be distributed toward shareholder returns andinvestment for sustainable growth.

Restructuring of Financial Foundation

Foreword―Restructuring of financial foundation and toward the sustainable growth phase ―and zero net interesting-bearing debt by the end of 2025. In terms of credit rating, “A” will be aimed.
On the other hand, improved capital/asset efficiency of 9% ROIC and 10% ROE will be aimed for increased efficiency ofmanagement. By improving capital efficiency, we will strive toward management that will meet the expectations of our stakeholders.

sustainable growth and long-term increase of corporate value.
We position shareholder returns to be one of the mostimportant management matters and will aim to resume
year-end dividends for FY2022. Finally, we will promote andaccelerate the management strategy of achieving sustainablegrowth with ESG placed at the core.
Data Section

have been introduced during the pandemic. The consequent
increase in product/service competitiveness will work to

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60

Chapter 3 Medium Term Management Plan

1. Strategy – The Big Picture

2. ESG Strategy

4. Finance Strategy

3. Business Strategy

Investment Strategy

Gradually shift cash flow allocation from restructuring of financial
foundation to shareholder return and investment for sustainable growth

All investments are to drive ESG management

Sustainable Growth
Phase

A Carefully select investments inthis phase

D Active shareholder return

B Recover an appropriate level ofliquidity

E Investment for sustainable growth

C Aim to resume dividends by theend of FY2022

Operatingcash flow

Debt
B repayment
Increasecashbalance

Cash inflow

Cash allocation

Gradually shift
cash flow
allocation fromrestructuringof financial
foundation toshareholder
return andinvestment forsustainablegrowthOperatingcash flow

660 Bn JPY

Approx.

Approx. 190 Bn JPY

150 Bn JPY /year

Approx.

170 Bn JPY /year(3 years total: approx. 510 bn JPY)

Actively update to fuel-efficient
aircraftAccelerate CO2 emission reduction

Shareholder
returnGradually expand growthinvestment while
prioritizing improvement offinancial structure

E

E

Environmental investment
such as for CO 2 reduction

S

Investment contributing tosolve social issues such as
safety and peace of mind,
customer convenience andregional communities

G

Investment to strengthen
corporate governance

Investment

FY2021Debt
financing

Debt
repayment

Cash inflow

Cash allocation

FY2022[Results]

FY2023～2025[To be implemented]

E Introduced fuel-efficient A350-900, etc.

Introduce fuel-efficient aircraft (A350 etc.)

S Introduced JAL SMART AIRPORT, etc.

Invest in air mobility related businesses, etc.

G Investments to strengthen LCC management foundation, etc.

Investment to strengthen IT infrastructure, etc.

Medium Term Management Plan

Debt
financing

C Shareholder
returnA
Investment

D

4 years total: Approx.
The JAL Group Value Creation Story

End of
FY2021



Restructuring
Phase

Foreword

Toward Investment for Growth and Shareholder Returns

In terms of cash flow distribution, the “Financial foundation restructuring phase” that prioritizes the restructuring of financial
foundation will be gradually shifted to the “Sustainable growth phase” that strengthens shareholders returns and investment for

The JAL Group considers all investments are to drive ESG management, and will steadily conduct investments belonging to thesustainable growth.

areas of “E”, “S” and “G”. The planned investment for the four years from 2022 to 2025 is 660 billion yen and will be conducted

In the “Financial foundation restructuring phase”, cash flow distribution will be conducted with priority on liquidity at hand and debt

under disciplined investment management.

repayment, toward increased risk tolerance and early improvement of financial structure. During this phase, investments will be
conducted through careful analysis, and resumption of year-end dividends for the FY2022 will be aimed.
Thereafter, as passenger demand recovers and cash flow improves through structural reform, we will shift to the “Sustainable growth

Investment for E

Introduction of fuel-efficient aircraft such as the A350 will contribute to a reduction of CO2 emissions, aswell as investment for SAF.

phase” to gradually shift focus to shareholder return and investment toward sustainable growth.
In terms of shareholder returns, we plan to achieve a stable dividend payout ratio of more than about 35% and improve the total
In the “Sustainable growth phase”, we will continue to conduct disciplined investment with ROIC and mid/long-term improvement of

Investment for “safety and peace of mind” is a social responsibility to the JAL Group, for improvement

Investment for S

Sustainability

payout ratio through flexible buyback.

of convenience/comfortability for our customers and toward air mobility that will contribute to a new
foundation of society.

corporate value placed at the core.

Investment for G

Topic

strengthen BCP.

Discussion with our shareholders

JAL REPORT 2022

The JAL Group will promote ESG management by steadily investing toward the areas of “E”, “S” and “G”. If performance recovers
and cash flow creation improves higher than planned, enhanced shareholder returns and increased volumes of investment forsustainable growth will be conducted.
Data Section

We proactively provide opportunities for analysts of security companies and institutional investors to havediscussions with our president, executive vice president, CFO, and others in the form of 1-on-1 as well aslarge meetings. In addition, we conduct events directed towards investors such as IR DAY and CEO/CFO
Small Meetings.
In “IR DAY” conducted in May 2022, we provided the opportunity for investors to discuss the “JAL GroupFY2021-2025 Medium Term Managment Plan Rolling plan 2022” with 11 executive officers including theCEO. Continuing from last year, Outside Director HATCHOJI Sonoko joined the session to discuss corporate
governance, allowing the understanding of the JAL Group from various perspectives.
In the “CEO Small Meeting” held in June 2022, active discussion was held between our investors andPresident AKASAKA about the “ESG Strategy” that is placed at the core of the “FY2021-2025 Medium Term
Managment Plan Rolling Plan 2022”.

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62

Chapter 4 Sustainability

Sustainability Initiatives

The Sustainability Promotion Committee chaired by the Senior Vice President

Foreword

ーSolving Social Issuesー

Promotion System
Board of Directorsof General Affairs meets each month to review progress and discuss initiatives
with relevant officers. The Sustainability Promotion Council, established in 2021

President

and chaired by the President, manages ESG through management review on the
We aim to be an airline group with corporate value that creates
sustainable flows of people, commodities and logistics so that
we can build a better future where everyone can feel fulfilled andhopeful. We will also execute our ESG strategies while always
issues and whether the direction and speed at which we areheading matches global trends.

AOKI Noriyuki
Managing Executive Officer
Chair of Sustainability Promotion Committee
Senior Vice President, General Affairs Division

Decide major issues and annual targets for sustainability initiatives, and monitor●and evaluate progress●

Decide actions to address climate change, risks and opportunities●

Monitor and evaluate the Environmental Management System●

Monitor and evaluate human rights due diligence

Meets twice a year
in principle, andwhenever necessary
to the agenda

Sustainability Promotion Council
Chair: President

The agenda items are reported to the Board of Directors, where they are
discussed. Going forward, we will submit key issues on ESG to the Board for

Sustainability Promotion Committee
Chair: Senior Vice President of General Affairs Division

Meets oncea month in principle

Sustainability Promotion Vice Presidents Meeting

Meets once a month

Sustainability Staff Meeting

Meets once a week

The JAL Group Value Creation Story

asking ourselves whether our initiatives are really solving social

following agenda items.

deliberation and pursue enhanced corporate value.

Solve Social Issues through ESG Strategies (identifying materiality)
To contribute to the achievement of the 17 goals/169 targets of the SDGs, we have categorized key issues to be addressed by
the JAL Group into 22 issues in four areas, Environment, People, Communities, and Governance, based on their impact on our

restructuring, it is important to have the collective strength

The world is shifting to an era of change where economic

and sensitivity to eliminate as many risks as possible. Taking

activities are impacted by the external environment, such as

on new challenges will only be possible if we are sensitive tothe acceleration of globalization and rising interest in ESG

the environment and we build a solid foundation for managing

and the SDGs. The JAL Group has made efforts to solve

risks.

social issues through its business activities and achieve the▶Employees, the drivers of business synergies

term business strategy) as “solve social issues and create

In the previous fiscal year, we strengthened the sustainability

sustainable flows of people, commodities and logistics.” This

promotion structure by establishing the Sustainability

represents a shift in our business objective to accelerate ESG-

Promotion Council chaired by the President. Our present

centered management strategy and business restructuring. It

challenge is to embed sustainability activities in theis vital that we change our mindset from conducting corporate

organization, where we see diverse human resources achieve

citizenship activities to improving sustainable corporate

the SDGs through their work and individual efforts bind thevalue and creating it. To build a better future where everyone

strengths of businesses together and generate synergies. We

can feel fulfilled and hopeful, we will treat ESG initiatives aswill utilize the strengths of our strong human resource base“investments” in new businesses rather than “costs” and will

and customer base to create Group-wide synergies.

categorized from the perspective of ESG.
Placing ESG strategy at the core of management strategy, Rolling Plan 2022 sets forth the goal of solving 22 social issues throughour business and creating sustainable flows of people, commodities and logistics. We reviewed the 22 issues affecting sustainability
in the four areas and their relationship with Passengers, Cargo and Mail, Mileage, Lifestyle, Regions, Contracted Services, and Air
Mobility, and changed the objective of our business to achieve JAL Vision 2030.

■4 Areas and 22 Issues to be addressed by the JAL Group

E
E▶Build a better future with stakeholders

PeopleBehavioral changes have occurred, exemplified by the choiceof eco-friendly or ethically-sourced products over those thatare not. To become a leading company of ESG, we would liketherefore, the key issues of the JAL Group can be categorized

to further accelerate efforts to address climate change andinto four areas, Environment, People, Communities andother social issues and play our part in building a sustainable

Governance, and 22 issues. We will reduce risks by removing

society. The important thing is to work together with our

impediments to sustainable growth, and to increase

stakeholders through internal and external communication.

opportunities, we will link social change with value creation

We will work hand in hand with society to build a sustainable

to achieve sustainable growth and economic revitalization,

future and become the world's most preferred and valued

and build a better society. As we move forward with businessairline group.

JAL REPORT 2022

Precaution of Environmental
Pollution

Noise Reduction

Biodiversity Conservation

Respect for Human Rights

Human Resource Development

Diversity and Inclusion

Workstyle Innovation

Wellness

Accessibility

Route Network Expansion

Promotion of Inbound Tourism

Regional Revitalization

Convenience in Mobility andDaily Life

Disaster Restoration AssistanceCommunity Relations

Robust Risk Management(strengthening BCM)

Fair Business Practices(compliance)

Disclosure

Responsible Procurement

Prevention of Infectious
DiseasesS
S

Communities

G
G

63

Effective Use of Limited
Resources

Governance

Data Section▶A powerful offensive strategy hinges on a strong defense

ESG factors present business risks and opportunities,

Addressing Climate Change

Environment

incorporate them in our business strategy to enhance longterm sustainable value.

SDGs

Issue

Sustainability

SDGs. Rolling Plan 2022 defines our ESG strategy (long-

business and their importance to management, through Board discussion. They cover the 17 goals of the SDGs and have been

Medium Term Management Plan

▶Putting ESG strategy at the core of managementTOP

JAL REPORT 2022

64

Chapter 4 Sustainability

Sustainability initiatives

Environment

PeopleCommunities

Governance

The JAL Group has established medium-term targets in each of the four areas and 22 issues with the aim to build
a sustainable society through our business operations and tackle the SDGs and ESG.
To promote ESG-centered management strategies in non-airline business areas, we established and disclosed
new indicators in addition to those that were disclosed last year. On formulating the Medium Term Management
22 issues

Main initiatives

FY21 results

FY25 targets

CO2 emission Scope 1 [aviation]

9.09 million tons

4.39 million tons

6.19 million tons

Below 9.09 million tons

CO2 per revenue ton kilometers (RTK)

1.0648 kg-CO2/RTK

km 1.3763 kg-CO2/RTK

km 1.2751 kg-CO2/RTK

Disclosed in FY22

CO2 emission Scope 2 [ground equipment]

57,000 tons

51,000 tons

53,000 tons

54,000 tons

Ratio of fuel-efficient aircraft

82.0%

84.0%

85.0%

86.0%

SAF out of Total Fuel On Board・L oaded on all five A350
delivery flights (from Toulouse
to Japan)・Domestically produced SAF loaded on
domestic scheduled flights

・Loaded on four A350 delivery flights(from Toulouse to Japan)
Replace 1% of total fuels with SAF
・L oaded a blend of two types ofdomestically produced SAF on domesticscheduled flights

Reduction by JAL Green Operations(CO2 emission reduction in daily operations)

157,000 tons (1.7% of total
emissions)

82,000 tons (1.8% of total emissions)

142,000 tons (2.3% of total
emissions)

JAL carbon offset website traffic

Tracked from FY21Q4

Environment

Management target

Priority issues

Priority issues

2.5 times vs. FY21 result
10.4%

25.0%

100.0%

Ratio of single-use plastics made fromenvironmentally-friendly
materials at airports and in cargo*

started from FY20

87.6%

90.0%

100.0%

Routes offering international meal cancellation
service*started from FY20

7 routes (total 39 routes: 18%)

19 routes (total 39 routes: 48%)

All routes

28.0%

34.0%

100.0%

Paperless in cargo sheds

ー

ー

ー

Complete paperless in JAL flights

Precaution of Environmental Pollution
p.81

Industrial waste reduction

Final disposal rate

0.3%

0.6%

0.3％

Keep below 1%

Noise Reduction
p.81

Operation with low-noise aircraft

ICAO Chapter 4 standard compliant aircraft

100%

100%

100%

100%

Prevention of illegal wildlife trade

Transport of illegal wildlife

0

0

0

0

Use of certified products

Ratio of paper items with international certification in
24.2%
consideration with forest resources used in cabins

66.5%

66.5%

100.0%

Human Rights Due Diligence

Preventing adverse HR impacts (establishmentof PDCA and appropriate operation)

Tracked from FY22

Training hours per person

72.3 hours/person

277.1 hours/person

162.3 hours/person

Track record

Training cost per person*3¥449,480/person¥109,321/person¥84,469/person

Track record

Employee satisfaction

54.4%

54.4%

51.7%

64.4% (+10 pt vs. FY19)

Ratio of employees with disabilities*1

2.62%

2.67%

2.64%

3.2％

Promotion of the active participation ofdiverse human resources in the workplace

Ratio of female managers

18.4%

19.5%

21.9%

30.0%

Management target

Childcare leave applicants*2

743 people

946 people

934 people

Track record

Nursing care leave applicants*2

53 people

40 people

20 people

Track record

Respect for Human Rights
pp.83-86
Human Resource Development
pp.87-88

Improvement of employee training
Improvement employee satisfaction

Diversity and Inclusion
pp.89-90

Priority issues

Sustainability

Paper reduction

Biodiversity Conservation
pp.81-82

SDGs

Reduce 2.5% of CO2 emitted fromaircraft

Reduction of virgin petroleum-based single-use
2.5%
plastic in cabins and lounges

Recycling of cooking waste from in-flight meals 7.7%

Stakeholders

Medium Term Management Plan

Plastic use reduction

In-flight meals disposal reduction

PeopleFY20 results

Priority issues

Effective Use of Limited Resources
pp.79-80

S

FY19 results

The JAL Group Value Creation Story

E

Management target

Plan in FY2021, we defined four priority management targets; reduction of carbon emissions, eliminationof single-use plastics, women in management, regional revitalization, taking into account domestic andinternational standards, industrial targets, global trends, and stakeholder expectations, after deliberations at the
management level based on opinions from relevant ministries, academic experts, NGOs and external experts.

Performance indicators

CO2 emission reduction

Addressing Climate Change
pp.70-78

Foreword

Key Initiatives and Performance Indicators (Targets and Performance)

100.0％

Data Section

Legend for Stakeholders...Customers...External partners

65

JAL REPORT 2022...Communities...Next generation/Environment...Shareholders and investors...Business partners...Employees

TOP

JAL REPORT 2022

66

Chapter 4 Sustainability

Sustainability initiatives

22 issues

Environment

Main initiatives

1,862 hours/person

1,878 hours/person

1,890 hours/person

1,850 hours/person

Annual paid leave usage ratio*2

79.0%

71.5%

74.5%

100%

Monthly overtime hours worked per person*2

9.5 hours/person

8.0 hours/person

9.9 hours/person

4 hours/person (linked to 1,850 hr total
hr worked per person per year)

Number of remote workers*2

36,105 people

336,287 people

346,167 people

Track record

247 times (workcation only)

918 times

1,533 times

Track record

Employee check-up ratio

100%

100%

100%

Keep 100%

Family check-up ratio*2

37.5%

36.0%

To be disclosed within FY2275%

Breast cancer check-up ratio (including family)*2 36.7%

43.4%

To be disclosed within FY2270%

Uterine cancer check-up ratio (including family)

30.7%

38.6%

To be disclosed within FY22

70%

Ratio of these passengers on board

0.36%

0.29% (0.8 times vs. FY19 result)

0.64% (1.8 times vs. FY19 result)

2.5 times vs. FY19 result

Number of wooden wheelchairs, which go
through metal detectors

478 wheelchairs

478 wheelchairs

478 wheelchairs

580 wheelchairs

Weight of pharmaceuticals transported

610 tons

721 tons (118% vs. FY19 result)

1,172 tons (92% vs. FY19 result)+50% vs. FY19 result

Preserving and developing regionalroutes including island routes

Number of domestic destinations (including
code-share)

62 destinations

61 destinations

61 destinations

More than 62 destinations

Expanding services by increasing
consignments

Ground handling of passenger and cargo flights
87,000 flightsof overseas carriers

9,000 flights

17,000 flights

128,000 flights

Increasing international visitors aboard
domestic flights

Number of passengers

701,240 people

49,188 people

121,844 people

1,505,000 people

Increasing domestic passenger/cargo traffic
Management target
Priority issues
Increase rate (passengers)ー

74.2% vs. FY19 result

59% vs. FY19 result+10% vs. FY19 result

Increase rate (cargo)ー

30% vs. FY19 result

34% vs. FY19 result+10% vs. FY19 result

Increasing associated demand by creating a
programs to visit regions in Japan

Environmental conservation measures andregional passenger transport measures

ー

ー

ー

25

Convenience in Mobility and Daily Life
p.97

Commercialization of drone logistics/”flyingcars” air taxi

Realization of commercialization

ー

ー

ー

FY23: commercialization of drone
logistics
FY25: commercialization of flying cars

Disaster Restoration Assistance p.97

Disaster relief

Donations through Charity Miles￥9,208,500￥11,328,500

To be disclosed within FY22

Track record

Number of participants

7,745 people

9,772 people

6,125 people

Track record

Total hours

51,734 hours

33,600 hours

27,952 hours

Track record

Children's Dream Support Project

Miles donatedStarted FY22ーー

3 million miles

Nurturing the next generation

Number of SORAIKUⓇ participants*4

191,840 people

20,435 people

50,147 people

Track record

Number of exercises as per BCP

1

1

4

2

Compliance ratio

100%

100%

100%

Keep 100%

PeopleImprovement of health check-up ratio
Wellnesspp.91-92

Improvement of gynecologicalcheck-up ratio*2

Accessibility
p.93

Increasing passengers who feel barriers to
Priority issues
travelPrevention of Infectious Diseases
p.94

Transport of pharmaceuticalsRoute Network Expansion
p.95
Promotion of Inbound Tourism
p.95

Communities

Usage of workcation/bleisure

Regional Revitalization
p.96

Priority issues

Promotion of volunteerism
Community Relations
p.98

Robust Risk Management (strengthening BCM*6)
Strengthening BCP effectiveness*7
pp.99-100

GovernanceCompliance to the Corporate Governance
Priority issues
Code

30%

30%

1/3

Over one third

Board meeting attendance ratio of Outside
Directors and Auditors

98.3%

100%

100%

Keep over 80%

Prevention of information leakage

Number of incidents

0

2*5

0

0

Prevention of corruption and bribery

Number of corruption and bribery cases

0

0

0

0

Disclosure
p.102

Improving disclosure on our Sustainability
webpage

Website traffic

765,912 visitors

786,229 visitors

893,469 visitors

Over 1,000,000 visitors

Responsible Procurement
pp.103-104

Supply chain managementConfirmation rate of primary supplier soundness

18%

37％

62%

100%

2

2

2

JAL REPORT 2022

Priority issues

Number of regulatory safety audits of all caterer
2
factories and in-flight supply storerooms per year

Data Section

Ratio of Outside Directors
Improving Board performance

Fair Business Practices (compliance)
pp.101-102*1 Sum of Japan Airlines Co., Ltd. and special subsidiary JAL SUNLIGHT Co., Ltd.
*2 Japan Airlines Co., Ltd. only
*3 External training*4 Activities to provide an opportunity for the next generation to think about their future,
Japan, the world, and the planet by exploring the wonders of the sky

67

*2

SDGs

Sustainability

Total work hours*2

Stakeholders

Medium Term Management Plan

FY25 targets

The JAL Group Value Creation Story

FY21 results

Foreword

FY20 results

Promotion of diverse workstyles

G

Governance

FY19 results

Workstyle Innovation
p.91

S

Communities

Performance indicators

Improvement of productivity

S

People*5 Number of data breaches reported to the authorities*6 Business Continuity Management*7 Business Continuity PlanTOP

JAL REPORT 2022

68

Chapter 4 Sustainability

Environment

Sustainability initiatives

Addressing Climate Change

Effective Use of Limited Resources

PeopleCommunities

GovernancePrecaution of Environmental Pollution

Noise Reduction

Biodiversity Conservation

Environment

Addressing Climate Change

FY2025 Management target

Particularly relevant areas:

Passengers

Cargo and Mail

Foreword

1
22

Total CO2 emissions below 9.09 million ton (FY2021 results: 6.19 million ton)

Basic Concept (JAL Group Code of Conduct)

Passing on the precious Earth to thenext generation (global environment)(1) Global environmental preservation initiatives
The JAL Group complies with laws and regulations andstrives to address climate change, use limited resources
effectively, prevent environmental pollution, reduce noise,and conserve biodiversity to reduce impacts on theenvironment. Furthermore, we pursue the developmentof environmentally-friendly technologies to solve
environmental issues, in coordination with stakeholders.

Challenges to be solved

Climate Change▶ Addressing
pp.70-78
Effective Use of LimitedWEB

pp.79-80

https://www.jal.com/en/sustainability/
environment/limited-resources/▶ Resources

As mentioned in the Medium Term Management Plan-Rolling Plan 2022 announced in May 2022, we aim toachieve the goals in JAL Vision 2030 and long-term growth by reducing risks and increasing opportunities with
ESG at the core of our management strategy, thereby increasing corporate value.

Precaution of Environmental

WEB

p.81

https://www.jal.com/en/sustainability/
environment/pollution-prevention/

Based on this concept, the JAL Group has established an environmental policy and a promotion system under
this policy and will work actively as a corporate citizen to remove impediments and obstacles and protect theenvironment.

WEB

For more information on the JAL Group Environmental Policy, please visit the JAL website.

▶ Pollution

Reduction▶ Noisep.81

JAL Group Code of Conduct "Commitment to Society"

Conservation▶ Biodiversity
pp.81-82

https://www.jal.com/en/sustainability/
environment/noise-reduction/WEB

https://www.jal.com/en/sustainability/environment-management/policy/

Medium Term Management Plan

(2) Disclosure of environmental information andstakeholder dialogue
The JAL Group actively discloses environmental information,
maintains dialogue with stakeholders and expands
environmental preservation initiatives across society.

WEB

WEB

https://www.jal.com/en/sustainability/
environment/climate-action/

The JAL Group recognizes that addressing climate change is a particularly important issue in social sustainability.
To steadily promote carbon reduction initiatives, amongst others, and fulfill our responsibility as an air transport
operator, we declared in June 2020 the target of achieving net zero CO2 emissions (net zero emissions)* by 2050.
We also endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in
February 2021 and Science Based Targets (SBT) initiative in March 2022. We will make adequate disclosure of
relevant information regularly.

The JAL Group Value Creation Story

We maintain an awareness that air transport is responsible
for a number of negative effects on the environment. To
fulfill our responsibility of passing on the precious Earth
to the next generation, we raise awareness of every
employee and protect the environment in every aspect.

Basic concept

WEB

https://www.jal.com/en/sustainability/
environment/biodiversity/* Net zero emissions: To balance actual carbon emissions from business activities and carbon reductions through initiatives (including the use of emissions trading and CCS (Carbon
dioxide Capture and Storage, the technology for capturing CO2 for long-term storage))https://www.jal.com/en/sustainability/codeofconduct/

Governance
The Medium Term Management Plan includes actions in ourpolicies and important matters to combat climate change.

management strategy to address climate change and provides

Environmental Management

Important targets and initiatives are discussed and decided by

22 sustainability issues across four areas to solve social

the Sustainability Promotion Council, chaired by the President,

issues through our business. Officer remuneration is based

In accordance with the JAL Group Environmental Policy, we will strive to achieve our environmental targets byimplementing the Environmental Management System (EMS) to promote environmental conservation activities, while
making continuous improvements appropriately and efficiently. In addition to establishing targets and action plans, wewill review the EMS on a quarterly basis and conduct internal environmental audits each year to verify system suitability
and legal compliance, and the level of target achievement such as carbon reduction and single-use plastics elimination.
In FY2021, in addition to divisional and company targets, we worked on waste segregation, personalized plastic waterbottles, and electricity conservation, all of which employees can easily do.
In 2021, JAL Royal Catering Co., Ltd., which provides in-flight meals, acquired ISO14001:2015, an international standard
that specifies the requirements for an effective environmental management system.

and are reported to the Board of Directors four times a year.

on the officer’s strong determination to achieve sustainable

We launched the NZE (Net Zero Emissions) Project in Junebusiness and increase corporate value through steady efforts

2021, which is Group-wide. Initiatives to achieve specificto tackle these issues, using external ESG assessments andtargets go through the PDCA cycle in the Environmental

CO2 reduction targets as indicators to measure progress andManagement System (EMS) and results are reported to theperformance.

Sustainability Promotion Council.

For more information about officer remuneration, please refer to page 31.

President
ReportManagement review
Decision-making,appointment

EMS Director

Internal Audit Team

(Senior Vice President of General Affairs)

Secretariat

ReportInstruction

Sustainability Promotion
Council(EMS cases discussed at least biannually)

Sustainability Promotion
Committee(EMS cases discussed at least biannually)

Members: President, all officers
including EMS Director
Agenda: Approval of medium- andlong-term environment targets,deliberation on EMS operational status, etc.
Members: Relevant officers, EMS
Director
Agenda: EMS progress management,
problem sharing, etc.

ReportGroup companies

Divisional EMS Managers(Vice Presidents of Administration)

EMS
supportReport(appointed in each division)

JAL REPORT 2022

Members: Divisional EMS Managers,
Chief of Secretariat
Agenda: Establishing and reviewing
divisional annual targets etc.

EMS Staff Meeting(meets biannually)

Members: Divisional EMS staff,
Secretariat
Agenda: Concrete initiatives, progress
and problem sharing, etc.

Appointment/
Instruction

Divisional EMS Staff in charge

69

EMS Managers Meeting(meets biannually)

Strategy■ Scenario analysis
Since the global outbreak of COVID-19, the global community
has established the 1.5℃ scenario as the standard climatechange scenario, and global action to achieve the 1.5℃ has
been growing, such as stronger environmental laws andregulations in Europe, the U.S. return to the Paris Agreement,
Japan’s carbon neutral declaration, revisions to Nationally
Determined Contributions (NDC), and the COP26 agreement
to meet the 1.5℃ target.

In 2018, the JAL Group participated in the “Support Projectfor Scenario Analysis of Climate Risks and Opportunities
in accordance with TCFD” supervised by the Japanese
Ministry of the Environment (MOE) and predicted the society
in 2030 based on two scenarios (RCP8.5*1, RCP2.6*2) of theInternational Energy Agency (IEA) and the Intergovernmental
Panel on Climate Change (IPCC), that is, keeping global warming
to below 4℃ and below 2℃ by the end of this century.

Data Section(ESG Promotion Department)

Sustainability

The Board of Directors deliberates and decides JAL Group*1 RCP8.5 scenario: A scenario with the highest emissions in the IPCC Fifth Assessment Report (a pathway with the highest greenhouse gas emissions in 2100)*2 RCP2.6 scenario: A scenario with the lowest emissions to stabilize global warming in the IPCC Fifth Assessment Report (limit the increase of global mean temperature to 2℃ )TOP

JAL REPORT 2022

70

Chapter 4 Sustainability

Environment

Sustainability initiatives

Addressing Climate Change

Effective Use of Limited Resources

PeopleCommunities

GovernancePrecaution of Environmental Pollution

Noise Reduction

Biodiversity Conservation*1

Development of policy toward low carbon transition
・Introduction of carbon tax in some countries/regions
・Limited support for development and diffusion ofGovernment ・Stricter fuel-efficiency regulations
next-generation aircraft and sustainable aviation fuel (SAF)*2
・Slowdown in low carbon/decarbonization trend(Strengthen and maintain relations with the government)
Continuing increase in LCC entrants
・Entry of LCCs, targeting price-sensitive customers, at a
New market entrants similar pace

Suppliers(feedstocks)

Suppliers(Aircraft manufacturers)

Continuous improvement in fuel efficiency
・Improved fuel-efficiency of aircraft
・Progress with supersonic aircraft development

Cost increase
・Heightened regulations and higher carbon prices (small impact)
Airline industry/ ・Fuel-efficiency improves but next-generation aircraft
Company
development and SAF diffusion slows down, no large change inbusiness landscape・High dependence on conventional jet fuel and rising fuel costs
due to soaring crude oil prices
Action・Demand growth especially in developing countries

Customers ・Growing logistic demand due to population increaseand economic revitalization (cargo)
・Limited interest in decarbonization, no shift torailway, etc.
・More flight cancellations and delays as extreme
weather conditions intensify(Create business plans in anticipation ofdemand growth, develop routes to meetdemand, expand codeshare, strengthen
weather information gathering and analysis)

Review routes based on fuel-efficiency,
strengthen BCP, intensifying climate change(Invest in SAF to a certain extent)(Investments in next-generation aircraft development at
the same pace)
No change

Climate change has the potential to adversely affect the airtransport business, which is founded on a “safe and securesociety,” and as a result, poses a significant risk to businesssustainability. Furthermore, addressing climate change throughCO2 emission reduction by airlines may have a variety offinancial impacts, including upgrades to fuel-efficient aircraft
and compliance with carbon pricing.
These factors affecting the JAL Groupʼs business are
summarized and discussed in accordance with the TCFD
portfolio of climate change-related risks and opportunities
and are listed in the table below. The "period" and "impact"
categories used here are defined below.

Items

Alternatives

Continue efforts to improve fuel-efficiency, implement measures against rising fuel costs, consider measures to prepare for physical risks

・In the 2℃ scenario, review of supply chains and business model
may be necessary due to diffusion of SAF and modal shift

Suppliers(Feedstocks)

Feedstock cost fluctuations
・Difference in cost between regions where SAF is
widespread and fuel costs fall and regions where
supplies do not keep up and prices do not fall

New entrant

Airline industry/
Company

Alternatives

FY2031 to FY2050 (Period until net zero emissions isachieved)

Impact Classification

PeriodLess than 3 billion yen

MediumFrom 3 billion yen to less than 30 billion yen

Large

30 billion yen or more

Impact of
Risk

Mitigation Measures
・Purchase credits that meet CORSIA eligibility criteria at
stable and fair prices
・Participate in rule-making on emissions trading overseas(ICAO, IATA) and in Japan (GX League)

Short- tomediumterm

Small toMedium

Impact of high SAF and hydrogen fuel prices on
earnings

Medium- tolong-term

Large

Aircraft

Delays in the development of aircraft and airport
infrastructure using new technologies such ashydrogen and electric power

Long-term

Large・Collaborate with aircraft and engine manufacturers
・Make approaches to the government and relevant entities

DemandDecline in customer preference due to delays
in climate action and slowdown in air transportdemand growth in Japan due to a modal shift

Medium- tolong-term

Small toMedium・Promote the values of aircraft mobility on reinforcing CO2
reduction measures

Operations

Decrease in total passengers due to climate
disasters caused by intensifying and extreme
weather events, changes in precipitation andclimate patterns, and the impact of increased flightcancellations on earnings

Medium- tolong-term

Medium to
Large・Strengthen the ability to manage disaster risks andimprove the BCP

DemandImpact of a pandemic caused by ecosystemchanges due to rising average temperatures on the
air transportation businessMedium- tolong-term

Large

SAF

Acute
Chronic

Items

Outline of Opportunities

Aircraft
operated

PeriodWEB

https://press.jal.co.jp/en/release/202205/006653.html

Resource efficiency
Energy source
Resilience
MarketProducts andservices

SAF

Demand・Invest in manufacturers and procure SAF at a fair pricethrough joint purchasing alliance・Make industry-wide approaches to the government andrelevant entities

・Provide a safe and secure air transport environment byreinforcing infectious disease control
・Create flight plans on estimating passenger demand

Impact ofOpportunities

Our responses to expand opportunities

Large

・Reduce CO2 emissions through innovative operational methods
・Make approaches to manufacturers, the government andrelevant entities to introduce advanced air traffic control andaircraft using new technologies
・Steadily upgrade to fuel-efficient aircraft

Reduction of fuel costs and CO2 (reductionof credit purchase costs) throughoperational methods, improved aircraft
technology and improved infrastructure
including advanced air traffic control

Short- tolong-term

Stable jet fuel supply and lower jet fuelprices through diversifying fuel supply
sources

Medium- tolong-term

Large・Procure SAF produced through multiple manufacturingmethods
・Promote SAF in Japan through an All Japan effort such as
ACT FOR SKY

Improved customer preference and increasein air demand by responding appropriately
to diversifying customer needs

Short- tolong-term

Large・Provide low carbon, environmentally-friendly products andservices・Expand disclosures on CO2 reduction and climate action

New revenue sources by creating new low
carbon businesses (next generation air
mobility, freighter business with Yamato HD,
LCC business)

Medium- tolong- term

Large・Create new businesses leveraging JAL Group's assets

Opportunity

For details of the FY2021-2025 JAL Group Medium Term Management
Plan-Rolling Plan 2022, please visit the JAL website.

Revenue or Cost Impact(Duration)

Small

Shortage of capacity due to delays in SAF
development, manufacture and supply

opportunities based on IEA SDS*3 and other factors, which
we reflected in the Medium Term Management Plan 2021 andRolling Plan 2022. We are also actively working to utilize SAF,
which is a key driver to achieving net zero emissions.

*1 Carbon Offsetting and Reduction Scheme for International Aviation: A system that requires international airlines to purchase emissions units for any excess of actual CO2 emissions in
2019.
*2 Sustainable Aviation Fuel: Fuel that is expected to reduce CO2 emissions by an average of 80% compared to conventional jet fuel over the entire life cycle throughout production,
procurement, manufacturing, transportation and combustion.
*3 IEA SDS: Sustainable Development Scenario of the International Energy Agency (IEA), a path toward complete achievement of the SDGs

JAL REPORT 2022

Long termTOP

JAL REPORT 2022

Data Section

Based on societal demand for decarbonization in the airline
industry, ICAO (International Civil Aviation Organization) is
considering long-term CO2 reduction targets for 2050. It
is expected that countries will continue to strengthen theircarbon emission regulations and actively engage in emissions
trading.
Under these circumstances, the JAL Group announced its
target of net zero emissions by 2050 at the General Meetingof Shareholders in June 2020, on the basis of the 1.5℃
scenario. We created a road map, taking into account risk and

FY2026 to FY2030 (Period to achieve SDGs)

Large

・Modal shift to rail and ship(coordinate with railways, etc.)

Engagement with suppliers, industry associations and governments is essential to ensure SAF stability

71

Physical risk

Middle period

Sustainability

Fuel-efficiency improvement continues
・Progress with development of next-generation aircraft
Suppliers
・Increased needs for fuel-efficient next-generation(Aircraft manufacturer) aircraft(Strengthen relations with aircraft manufacturers and increase
investments in next-generation aircraft development)

Growing demand for international flights
Shift to a low carbon society intensifies
・Growing demand especially in developing countries
・Growing air travel demand due to economic development inCustomers ・Growing environmental concerns, shift todeveloping countries
environmental-friendly mobility/transportation modes,
・Slowdown in growth due to shift to environmentally-friendly
such as rail and shiptransportation such as rail and ship
(Reduce transport costs by improving fuel-efficiency
・Stricter regulations, rising carbon prices
and reducing costs)
・Adoption of SAF progresses
Action
Review aircraft investment plan,
secure SAF and build supply chains,review routes taking into account refueling

FY2022 to FY2025 (Current Medium-Term Management
Plan applicable period)

Medium- tolong-term

Strengthen relations with the government(lobby SAF diffusion)(Consider developing SAF made from feedstocks other than agricultural products)

ActionActively invest in SAF development
Secure SAF, strengthen relationships with suppliers(Promote open innovation)

ActionPolicies andregulations
Technology
MarketEvaluation

Short term

Increase in credit purchase costs due to stronger
CO2 emission regulations in each country

Transition
risk

Development of policy toward low carbon transitionengines with high greenhouse gas (GHG) emissions in some・Introduce carbon tax for decarbonization/low carbon society
Government ・Stricter fuel-efficiency regulations
countries/regions (pay fines)
・Tighter restrictions on land use in some countries/regions as part of・Support SAF development and diffusion toward decarbonization
climate action, affecting feedstocks (crops) required for SAF production
・Restrictions on departures/arrivals of aircraft loaded with old jet

New entrants Entrants using electric-powered aircraft
・Emergence of new carriers, primarily those using
electric-powered aircraft for transport

Emissiontrading

Contents

Medium Term Management Plan

2℃ scenario

Outline of Risks

Period Classification

The JAL Group Value Creation Story

Rising feedstock costs
・Reduction in costs to change to SAF due to slow
diffusion of SAF
・Rising crude oil-derived conventional fuel prices(invest in SAF development)■ Risks and opportunities

Foreword

4℃ scenario is an extension of the status quo (The structure of the aviation industry remains largely unchanged.)
4℃ scenario ・ *TheThe assumption that the CORSIA scheme will progress under the current plan72

Chapter 4 Sustainability

Environment

Sustainability initiatives

Addressing Climate Change

Effective Use of Limited Resources

PeopleCommunities

GovernancePrecaution of Environmental Pollution

Noise Reduction

Biodiversity Conservation

The JAL Group defines risk as an event or action that impedes the achievement of an organizationʼs mission, objectives or targets,and conducts a semiannual risk survey and assessment. Items evaluated as having a particularly large impact are identified aspriority risks, and deliberations and decisions are made by the Group Risk Management Council, chaired by the President, and its■JAL Group's road map towards Net Zero CO2 Emissions
CO2 Emissions (10k tons)

CO2 Reduction

1,200

Upgrades tofuel-efficient
aircraft: 50%

1,000

subcommittee, the Risk Management and Information Security Committee.
Furthermore, as risks associated with climate change are recognized as material risks, each climate risk is identified in the PDCA
cycle through the Environmental Management System (EMS), and is managed, taking into account global trends in legislation andpolicy. Details are reported to the Board of Directors for discussion and evaluation.

800

Reduction in daily
operations: 5%600

Use of SAF:
45%

200

Transition risks and physical risks associated with climate change are managed in the risk management framework of the JAL

0Group.

FY2019For a risk management structure chart, please visit the JAL website.
WEBhttps://www.jal.com/en/sustainability/governance/riskmanagement/#risk

1.5℃ scenario→

2025

Upgrades to fuel-efficient aircraft

Indicators and targets

ESG Data Book: https:// www.jal.com/en/sustainability/esg/pdf/esg.pdf
Due to the nature of the air transport business, aircraft emissions account for about 99% of CO2 emissions. Accordingly, we willaddress this issue with top priority. We have also set high targets for CO2 emissions from ground equipment and are working hard toachieve them.
Although achieving the targets is by no means easy, we will continue to stand at the forefront to support the aviation industry
in reducing CO2 emissions, in line with the Japanese governmentʼs Clean Energy Strategy and international frameworks, whilestrengthening coordination and collaboration with stakeholders in Japan and overseas.
For more information on "Performance and Targets for Reducing CO2 Emissions," please visit the JAL website.
WEB

https://www.jal.com/en/sustainability/initiatives/

Use of SAF

2045

2050

Use of SAF

Utilize the latest fuel-efficient aircraft today and aim to introduce aircraft using new technologies in the near future,such as hydrogen and electric powered aircraftIn addition to “JAL Green Operations” to reduce CO2 emissions in daily operations, promote collaboration across theindustry, including air traffic control agency, airlines, and airport operators
Collaborate with stakeholders towards a decarbonized society to secure SAF supply and reduce costs■ Targets and initiatives towards CO2 emission reduction by 2030
The JAL Group's target of reducing 10% of total emissions by FY2030 compared to FY2019 levels is one of the most ambitious
targets among global airlines. We will boldly take on this challenge through such initiatives as upgrades to fuel-efficient aircraft basedon a stable financial base, the steady implementation of JAL Green Operations, and strategic procurement of SAF on setting specific
SAF replacement targets.
Moves to produce SAF and build supply chains are accelerating overseas. The Japanese government has clearly stated its intention
to promote the production and distribution of SAF in its “Basic Policy on Economic and Fiscal Management and Reform 2022”and “Grand Design and the Action Plan for a New Form of Capitalism.” To achieve our ambitious target of replacing 10% of all
fuel on board with SAF by 2030, the JAL Group will actively work to commercialize SAF through public-private partnerships andcooperation with domestic and international stakeholders.

■CO2 reduction targets and results
Base year

2021

Direct emissions(Scope1)

FY19 Results

FY21 Results

million tons

million tons

9.09

6.19

ATAGʼs*1 WAYPOINT 2050*2.

2025

2030

FY2025 CO2 Reduction Targets
Total emissions:Less than 9.09 million tons
(Approx. 500,000 tons reduction)*Less than FY2019

FY2030 CO2 Reduction Targets
Total emissions:Less than 8.18 million tons
(Approx. 2 million tons reduction)*90% compared to FY2019

2050
Sustainability

studying 2050 emissions scenarios, with reference to the latest materials of ICAO and IATA based on the 1.5℃ pathway and2040

Upgrades to fuel-efficient aircraft
Reduction in daily operations■ Conditions for creating scenarios to achieve net zero emissions by the JAL GroupTo reduce CO2 emissions from JAL Group aircraft, we are discussing issues and considering measures that can be taken, on

2035

Net Zero CO2Emissions

Medium Term Management Plan

CO2 emissions, waste materials and water consumption, and discloses results on progress and performance.

2030

Target of CO2 reduction (net)
CO2 emissions with no efforts (BAU)

Reduction in daily operations

To pass on the precious Earth to the next generation, the JAL Group has set targets on environmental data such as reduction of

The JAL Group Value Creation Story

2.0℃ scenario→
400■ Risk Management System

Foreword

Risk Management

net zero*Voluntarily digging deeper, taking into account the Paris Agreement, etc.

In creating scenarios, we determined the growth of RTK (Revenue Ton-Kilometers) based on total international and domestic
passenger demand respectively, calculated the total volume of CO2 emissions up to 2050, and reflected the impact in each initiative.
*1 ATAG (Air Transport Action Group): An international coalition of organizations and companies in the air transport industry that promotes sustainability in the aviation industry.
*2 Waypoint 2050 (English only) https://aviationbenefits.org/environmental-efficiency/climate-action/waypoint-2050/

Indirect emissions(Scope2)

FY13 Results

FY21 Results

tons

tons

80,00053,000

FY2025 CO2 Reduction Targets

FY2030 CO2 Reduction Targets

Total emissions:Less than 54,000 tons
*67% compared to FY2013

Total emissions:Less than 40,000 tons
*50% compared to FY2013

net zero

Data Section▶Coordination with external parties to reduce CO2 emissions (public-private activities, etc.)
We are participating in a study group, organized by the Ministryof Land, Infrastructure, Transport and Tourism and the Ministryof Economy, Trade, and Industry, to reduce CO2 emissions in
the operations domain (SAF adoption, improvement of aircraft
operating techniques, adoption of new technology) and the airport
73

JAL REPORT 2022

domain through public-private activities.
In the airline industry, the 19 member companies of the Scheduled
Airlines Association of JAPAN are drawing up the 2030 Global
Warming Prevention Plan to reduce CO2 emissions in coordination
with relevant companies and other industry associations.

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74

Chapter 4 Sustainability

Environment

Sustainability initiatives

Addressing Climate Change

Effective Use of Limited Resources

PeopleCommunities

GovernancePrecaution of Environmental Pollution

Noise Reduction

Biodiversity Conservation▶Procurement of SAF

Priority and strategic measures■Use of SAF

Foreword

In FY2021, we signed a joint agreement with oneworld alliance member airlines to purchase SAF from the U.S., a leader in SAF
production. SAF will be purchased from Aemetis, which produces SAF made from waste animal fats, and Gevo, which uses non-

The JAL Group has set the target of replacing 1% of total fuel with SAF in FY2025 and 10% in FY2030. To achieve these targets,

edible field corn to make SAF. This is the first initiative of the alliance, and by showing the need for SAF by multiple airlines, we will

we are working on SAF production and utilization pathways with our stakeholders in Japan and overseas, transcending industry

contribute to the diffusion and market expansion of SAF and promote carbon neutrality in the airline industry.

boundaries.
(10,000 kl)

35

10%

Estimated procurement potential
Domestic procurement volume

of total fuelExpect toachieve target

30

Target25of total fuel1%

Shortage

15
5

2024

2025

2026

2027

2028

2029

2030

▶What is SAF (Sustainable Aviation Fuel)?
SAF is fuel made from non-petroleum derived feedstocks that absorb carbon dioxide, such as used cooking oil and thinned wood.
Using SAF results in a reduction in carbon emissions.

SAF

Jet fuel

Curb new CO2 emissions

CO2 emissions▶Initiatives to increase SAF procurement and utilization
In addition to joint procurement of SAF with oneworld alliance member airlines, the JAL Group is promoting SAF diffusion andexpansion by using domestically produced SAF and participating in the development of next-generation SAF such as synthetic fuel.
75

JAL REPORT 2022

ACT FOR SKY logo and 16 participating companies③ Coordination with the government
At the FY2021 Study Group on CO2 Reduction in the Aircraft Operations Sector, the target of replacing 10% of fuel consumed
by Japanese airlines with SAF was set up as a common target of the Ministry of Land, Infrastructure, Transport and Tourism andJapanese airlines. In introducing SAF, it was recommended that the development and production of internationally competitivedomestic SAF should be promoted and that coordination among wholesalers on the supply side and airlines on the user side should
be strengthened in order to build future supply chains.
For this reason, in FY2022, the Public-Private Council for the Promotion of SAF, co-sponsored by the Ministry of Land, Infrastructure,
Transport and Tourism and the Ministry of Economy, Trade and Industry, was established as a forum for public-private discussions
and joint initiatives on technical and economic issues and solutions. JAL is an active participant in this forum.
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JAL REPORT 2022

Data Section

CO2 absorption② Coordination among industries
In March 2022, JAL, JGC HOLDINGS CORPORATION, ANA
and REVO International Inc. established ACT FOR SKY, a
voluntary organization that works to commercialize, promoteand expand the use of domestically produced SAF. A total of
16 companies, including those directly involved in domestic
SAF business and those essential in establishing supply chainsfor domestic SAF, will coordinate and collaborate to change
the awareness of citizens and companies, while promoting theimportance of SAF, carbon neutrality and achieving a circular
economy.
As a founding company, JAL will contribute to increasingawareness and decarbonization in the aviation sector. Goingforward, ACT FOR SKY will work with various stakeholders topromote and expand SAF and implement specific initiatives todevelop Japanʼs aviation network and the entire industry andbuild a sustainable society.

Joint report created and announced by JAL and ANA

Sustainability

Non-petroleum derived
feedstocks① Coordination in the airline industry
To achieve carbon neutrality in 2050, the development anddiffusion of SAF is essential. In October 2021, JAL and ANA
created and announced a joint report "Towards Virtually Zero
CO2 Emissions for Air Transport in 2050" to build a stablesupply system for SAF.
The report aims to raise awareness and promote
understanding of SAF in Japan and provides a wide range
of information on mass production and utilization including
estimates of SAF requirements of both companies. To pass on
air transportation to the next generation as an important social
infrastructure that connects Japan with the world, JAL and
ANA will continue to work together to promote SAF diffusion
and other environmental measures, in coordination with thegovernment and related parties.

Medium Term Management Plan

0

2023

Aemetis and Gevo, with which oneworld alliance members signed a joint agreement▶Coordination with stakeholders
Accelerating efforts to produce and stably secure SAF in Japan20

FY2022The JAL Group Value Creation Story40

TargetTarget amount76

Chapter 4 Sustainability

Environment

Sustainability initiatives

Addressing Climate Change

Effective Use of Limited Resources

PeopleCommunities

GovernancePrecaution of Environmental Pollution

Noise Reduction

Biodiversity Conservation■ Engaging in emissions trading

In September 2019, we began introducing the Airbus A350

In addition to complying with CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) adopted by ICAO, JAL-900 on domestic routes and completed service entry of 16

offers JAL Carbon Offset. We will also participate in rulemaking through the GX (Green Transformation) League to build a carbon

aircraft. From 2023, we will begin to introduce the Airbus

emissions trading system in Japan.

Foreword■ Upgrading to fuel-efficient aircraft

A350 -1000 on international routes. This fuel-efficient, lownoise, low-carbon aircraft reduces carbon emissions by 15%▶JAL Carbon Offset

to 25% compared to previous models.

SDGs bonds

We will continue to steadily upgrade our fleet to fuel-efficient
aircraft using funds raised through a public offering in FY2020
the airline industry in March 2022.
With the active development of electric- and hydrogen-80%

powered next-generation aircraft equipped with new

60%

technologies, we will cooperate with aircraft and engine

40%

manufacturers to promote technological innovation. As thedevelopment of infrastructure including airports is essential tonext-generation aircraft, we will work with stakeholders suchvoluntary scheme for customers to offset CO2 their flights emit.

Percentage of fuel-efficient aircraft
100%

15%

15%

15%

Following the website renewal of the program for individuals in
15%

14%

emissions from corporate travel. We will continue to work with
85%

85%

85%

85%

86%

our customers to reduce CO2 emissions.

Illustration of using
smartphones

20%
0%

2021

2022

2023

2024

2025

Measures to reduce CO2 emissions from ground equipment

environment.

We are implementing various initiatives in daily operations
to reduce CO2 emissions such as eco-flights through better(Normal pushback)Distance from parking spot: average 2 min(Short pushback)Distance from parking spot: average 1 min 30 sec

With regard to ground equipment, initiatives to reduce
unit energy consumption by 1% or more on average arein progress. Under the “operator classification evaluation
system” of the Act on the Rational Use of Energy (Energy
Conservation Act) implemented by the Ministry of
Economy, Trade and Industry, the JAL Group has beencertified as “S Class,” an excellent business operator, for 7

consecutive years since 2015.
To reduce CO2 emissions from airport vehicles at airports,
we are working to introduce electric-powered vehicles
and alternative diesel fuels. At Kumamoto Airport, we are
testing B-30 fuel which is a blend of 30% biodiesel fuelmade from used cooking oil, and at Narita Airport, B-100
fuel which is a substance of 100% biodiesel.

Launch of Japan's first B-30 fuel trial (Kumamoto Airport)

Refueling B-100 (Narita Airport)

Medium Term Management Plan

■ Initiatives in daily operations

shorter flight courses. These initiatives are collectively called

February 2022, we began offering a program for corporations
in July 2022, which allows them to visualize and offset

as the government and airport companies to improve thetiming, better flight maneuvers, lighter weight aircraft, andof climate experts, the JAL Group offers JAL Carbon Offset, a
The JAL Group Value Creation Storyand SDGs bonds, the world's first transition bonds issued byWith the cooperation of CHOOOSE, a Norwegian company

JAL Green Operations.
In FY2021, we have introduced an initiative to improve fuelefficiency of regional jets by cleaning their engines with foam
instead of spraying water. We are also actively promoting
new initiatives such as shortening the distance of pushbackwith towing tractors at departure (short pushback) at Haneda
Airport.

Sustainability

CONTRAIL Project

VoiceFirst in the world to Introduce a new method of Engine
Foam Wash for regional jets

To protect the future of traveling around the world by plane, it is essential for the aviationindustry to reduce its environmental impact. Foam wash using a special cleaning agent
by the maintenance division to improve the environment. Each activity is small, but wehope to raise awareness of environmental concerns within the company and the aviationindustry.

77

JAL REPORT 2022

MIKI Sayuri
Planning, Aircraft Maintenance Center, Osaka
JAL Engineering Co., Ltd.

Data Section

takes longer working hours than water wash, but we decided to introduce it as an initiative

The JAL Group has been working on in-flight atmosphericobservation since 1993. In 2005, the National Institute forEnvironmental Studies (NIES) and aircraft parts manufacturer
JAMCO Corporation joined the efforts to expand andenhance the scope of these atmospheric observations, andwith each party putting their expertise to use, the CONTRAIL
Project was born. The CONTRAIL Project is the worldʼs firstplanned ongoing, global-scale continuous measurement ofgreenhouse gases using equipment installed on scheduled
passenger flights, and this joint public-private projectcontinues its activities today.

CONTRAIL logoTOP

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78

Chapter 4 Sustainability

Sustainability initiatives
Addressing Climate Change

Effective Use of Limited Resources

PeopleCommunities

GovernancePrecaution of Environmental Pollution

Noise Reduction

Biodiversity Conservation

Effective Use of Limited Resources

FY2025 Management target
Single-use plastics

Particularly
relevant areas:

Passengers

Cargo and Mail

Eliminate petroleum-derived products in cabins and lounges (FY2021 result: 25% eliminated)
Change 100% to environmentally-friendly materials for cargo and airports (FY2021 result: 90% changed)

Reduce food waste

Foreword

2
22

Environment

Priority and strategic measures
Greenhouse Gas (GHG) emissions from the entire food system covering production, distribution, processing and disposal are
estimated to account for 21~37% of global emissions. Food waste is now a serious global problem and reduction initiatives arean essential social responsibility for building a decarbonized society. The JAL Group has implemented various initiatives such

Basic concept■To fulfill our responsibility to pass on the precious Earth to the next generation, the JAL Group aims tobecome a recycling-based society that uses limited resources effectively.
to reduce food waste and eliminate petroleum-derived single-use plastics products in all aspects of ourbusiness, which will contribute to reducing greenhouse gas emissions.
■To achieve this, we will work with our customers to reduce food waste and eliminate the use of plastic

products at every touchpoint including our cabins, and reduce food waste in supply chains.

employees to action, making us one of the most pioneering and challenging airlines in the world.

■ JALʼs FLW (Food Loss & Waste) Reduction Program
RefuseReduceWe have introduced a meal cancellation
service called "JAL Ethical Choice - Meal
Skip Option -" for customers who do notneed meals, the world’s first among global
airlines, and will expand the service to allroutes from the second half of FY2022.

We are working to reduce food waste
by improving cooking methods, reduce
leftover food from in-flight meals bypurchasing ingredients appropriately
and managing reservations, and develop
menus, so that passengers can enjoy andfinish their meals. As a unique initiative,
we request the customers’ cooperation to
reduce leftover food.

Eliminate single-use plastics

RefusePriority and strategic measures

Ethical Choice Service

Single-use plastics used (Japan Airlines Co., Ltd.)

Reuse

FY2019eliminating single-use plastics, which cause global

Petroleum-derived plastics only

FY2019warming and ocean pollution, by FY2025. With the

FY2025

FY2025cooperation of our customers, we are promoting theSingle-use plastics discontinued

WEB

0

Passenger cabins and lounges

Others (cargo, airports)▶Examples of single-use plastics reduction
Passenger cabins and lounges
Elimination of petroleum-derived plastics FY21 result: 25%
ReduceRedesign

Containers made from recycledplastic bottles

Reuse
Wash and use
repeatedly

ReduceCargo, airports
Change 100% to environmentally-friendly materials FY21 result: 90%
Redesign

Discontinue sobatsuyu (soba dipping sauce)bottles and use gelled type dipping sauce

Discontinue provision of plasticbags for checked baggage(1.5 million per year)

RecyclePlastic sheets for packing cargo
made from recycled materials,
recycled from 40 years ago

https://www.jal.co.jp/jp/en/inter/
service/meal/meal_skip/

Reuse non-standard crops
Use non-edible food parts
Donations to social welfare
council, etc.

Reuse
We are developing in-flight meals, whichreuse farm products that are discarded
because they are "non-standard" andnon-edible parts that are discarded in the
production and processing stage. We arealso working to reduce waste in supply
chains by purchasing pre-cut ingredientsfrom suppliers who reuse scraps in the
cutting process.

Redesign

Recycle 100% plastic bottles

ReduceRecycleDevelop menus
so that passengers
can finish their meal
Ideas in the cooking process
Loss meal* trend analysis
Campaign to prevent
leftover food

Enjoying meals will reduce CO2
emissions from waste disposal andhelp keep the planet clean.
JAL promotes initiatives to protect
the natural environment in order tobuild a sustainable society.

100% recycling of food waste
in preparation process
Promote the use of cyclicalvegetable production* Leftover food from in-flight meals caused by discrepancy between
number of reservations and actual passenger countMessage to passengers on the menu card

WEB

https://www.jal.com/en/sustainability/
environment/limited-resources/#anc09

RecycleIn June 2022, JAL Royal Catering, incollaboration with NTT Business Solutions,
successfully recycled all cooking waste fromin-flight meals into fertilizer. The recycled
fertilizer is used to grow vegetables near
Narita for use in in-flight meals. In this way,
we are promoting recycling.

Reuse

Reuse

Reuse

Vegetable soup made from broccoli stalks
that would have been discarded

Collaboration sweets with MIZKAN Group ZENB
Sable made with beet seeds, stems and roots

In-flight meal made with spinach grown with thecyclical agricultural method
Fumiko's Western Set Plate SDGs ~ A dish of future ingredients

Sustainability

ReduceReduceJAL’s
FLW 4R

Let's do ethical sky!

Blend of eco-friendly materials

3Rs (Reduce, Reuse, Recycle) + 1R (Redesign).

"Passing on the precious
Earth to the next generation"

Medium Term Management Plan

In May 2021, the JAL Group set the target of

The JAL Group Value Creation Story■To promote the effective use of limited resources, we will practice the 4Rs (Refuse, Reduce, Reuse, Recycle)

as scheduling forward reduction plans, reducing food waste from catering facilities and supply chains, and putting ideas fromTopic

WWF Japan special website

79

JAL REPORT 2022

WEB

https://www.wwf.or.jp/campaign/pcc2025/

We need to cancel in-flight meals in advance,
so I think it is a very good idea.

Data Section

To solve global plastic pollution and climate change caused by mass production, mass consumption
and mass disposal, it is essential to fundamentally reexamine the nature of production, consumption,and disposal. JAL and 10 other companies participated in Plastic Circular Challenge 2025 organized by
Public Interest Incorporated Foundation World Wide Fund Japan (WWF Japan). Based on the concept ofa sustainable circular economy, it is essential to take comprehensive and ambitious measures prioritizing
Reduce, Reuse and Recycle in this order. While there are various issues in eliminating single-use plastics,
we will continue to expand and accelerate our activities in collaboration with stakeholders to achieve thesetargets.

I think your efforts to eliminate waste are great.

Customer feedback
I realized that finishing my in-flight meal is good forthe environment.

It reminded me that companies are required to makeefforts to improve the environment without lowering
customer service levels.

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80

Chapter 4 Sustainability

Addressing Climate Change

Effective Use of Limited Resources

PeopleCommunities

GovernancePrecaution of Environmental Pollution

Noise Reduction

Biodiversity Conservation

Precaution of Environmental Pollution

Particularly
relevant areas:

Passengers

Cargo and Mail

Priority and strategic measures
Foreword

3
22

Environment

Sustainability initiatives■ Preventing illegal wildlife trade

Basic concept■The JAL Group will strive to prevent environmental pollution to fulfill its responsibility to pass on the precious

Earth to the next generation.
■We will strive to reduce carbon emissions from aircraft and factories, which cause environmental pollution.
■To achieve this, we will reduce emissions of carbon dioxide (CO2), nitrogen oxides (NOx), carbon monoxide(CO) and hydrocarbons (HC) by using aircraft engines that comply with appropriate standards.

The JAL Group Value Creation Story

We will also manage and reduce the release of hazardous chemical substances in accordance with the Law
Concerning Reporting, etc. of Releases to the Environment of Specific Chemical Substances and Promoting
Improvements in Their Management (PRTR Law). We will maintain a final disposal rate for industrial waste of
1% or lower.

In June 2018, the JAL Group signed the Buckingham Palace Declaration by the United for Wildlife Transport Taskforce to reduce
illegal wildlife trade promoted by the International Air Transport Association (IATA). There were incidents in the JAL Group, where wefound passengers taking endangered species from the island; endangered palm crabs at Ishigaki Airport and rare frogs and snakes
at Amami Airport. Considering the importance of preventing these incidents, we have invited staff from World Wide Fund Japan(WWF Japan) and held workshops since 2020 to study the current situation of illegal wildlife trade and how to handle situations
when discovering this. We also created in-house educational content with the cooperation of WWF Japan, to embed Group-wide
understanding.
In the Amami and Okinawa region, which is home to many rare wildlife species, the JAL Group, together with the local communities,
is actively participating in anti-poaching and anti-smuggling measures implemented by the Ministry of the Environment and local
government. These initiatives were introduced at a symposium on illegal wildlife trade in December 2021, which was organized by
WWF Japan and TRAFFIC, a leading NGO working globally on Biodiversity Conservation and sustainability development.

Topic
4
22

Noise Reduction

Particularly relevant areas:

Passengers

Cargo and Mail

Basic concept

Formulation of guidelines for ESG foods and merchandise
The JAL Group has developed guidelines for handling foods and merchandise related to the protection of endangered animals, animal welfare andother ESG risks. To properly understand the importance of biodiversity conservation and raise awareness of its relationship with foods and merchandise
we handle, we are raising public awareness.

■ Relationship with World Natural Heritage Sites

the environment and aims to live in harmony with residents around the airport.
■To reduce noise, we are upgrading our fleet to the latest low-noise aircraft that comply with noise standards,

and are actively introducing noise abatement operational procedures.

We are steadily upgrading to aircraft compliant to noise standards* (ICAO

Percentage of aircraft compliant to ICAO noise standards

Chapter 4, Chapter 14), and are upgrading our flagship fleet to the low-noise,%100

fuel-efficient Airbus A350.

80

We are also actively working on "reduction of noise at source" and "noise

60

abatement operational procedures" required by airlines according to ICAO’s

40

Balanced Approach to Aircraft Noise Management.

20* Standards set by ICAO. Chapter 4 applicable from 2001 and Chapter 14 applicable from 2017

0

100

100

45

100

46

41

In addition to communicating local attractions of the Amami and Okinawa
region, the JAL Group has been working since 2019 as the lead organizerof a joint association to promote the registration of World Natural
Heritage Sites (Kagoshima: 66 companies and organizations, Okinawa:
50 companies and organizations), in collaboration with administration,
local businesses and local organizations. After registration of the region
as a World Natural Heritage Site, we continue to provide support by
attracting visitors with sightseeing tours to enjoy the natural environmentand donating a portion of the tour price to conserve World Heritage Sites.

Livery based on a drawing of endangered animals and plants
by elementary and junior high school students that won a prize
in a competition sponsored by Okinawa Prefecture to celebrate
registration as a World Heritage Site

■ Sexual reproduction of corals for reef restoration project
FY2019FY2020Particularly relevant areas:

FY2021

FY2025Chapter14 compliant aircraft

Passengers

Cargo and Mail

Mileage, Lifestyle and Infrastructure

One of the attractions of Okinawa is its coral reefs, which are not only beautiful but
also have many roles to play in the coexistence and lives of living creations. In recent
years, capacity of coral reefs has been declining due to rising sea temperaturesand crown-of-thorns starfish outbreaks, which have become a problem. Japan
Transocean Air (JTA) has formed a council with supporting local businesses to assist
in reef restoration through sexual reproduction on Ishigaki and Kume Islands.

Basic concept

Sustainability

Biodiversity Conservation

100

40

Chapter4 compliant aircraft

522

Medium Term Management Plan

■The JAL Group maintains an awareness that air transport is responsible for a number of negative effects on

Spawning corals photographed off Ishigaki Island■The JAL Group will contribute to biodiversity conservation to fulfill its responsibility to pass on the precious

Earth to the next generation.
■We will fulfill our responsibility as an air transport operator to ensure that our services are not used for the

Voicetransportation of illegal wildlife trade.
We also minimize the impact of our business activities on the environment and ecosystems.
expanding biodiversity conservation activities.

SAKAE Masayuki
Regional Sales Manager,
Amami

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JAL REPORT 2022

Data Section■To achieve this, we are utilizing JAL's strengths of human resources to prevent illegal wildlife trade and are

Balancing the protection of the natural environment and nature experience
Preventing roadkill and overuse of wildlife has become an important issue in the
Amami and Okinawa region. On Amami-Oshima Island, since last October, it is a rule
to optimize the hours of night tours for observing the Amami rabbit and other wildlife.
Tour reservations and tour areas are checked by the authorities.
The Amami sales office, which serves as the secretary of the World Natural Heritage
Promotion Community, works together with local residents to realize sustainable
tourism, such as publicizing rules and participating in meetings with member
companies.

Photo courtesy of the
Ministry of the EnvironmentTOP

JAL REPORT 2022

82

Chapter 4 Sustainability

Sustainability initiatives

Respect for Human Rights

Environment

Human Resource Development

Diversity and Inclusion

PeopleCommunities

Workstyle Innovation

Wellness

Accessibility

GovernancePrevention of Infectious Diseases■ Framework for respecting human rights
To promote initiatives that respect human rights, in FY2021, the JAL Group established internal regulations governing the structure
and operation of human rights due diligence (“HRDD”).
In accordance with these regulations, we established key issues for FY2021 from three perspectives: supply chain management,
provision of products and services, and improvement of the internal environment.
At the end of the fiscal year, we conducted a review and assessment, and will plan next yearʼs activities, taking into account humanrights risks surveys and dialogue with experts.
As part of our review, we reviewed the HRDD flow and will promote activities in FY2022 based on the new flow.

Basic Concept (JAL Group Code of Conduct)

Pursuit of customer satisfaction

Challenges to be solved

The JAL Group provides information on products
and services appropriately, takes comments fromdevelop and provide better products and services
in order to deliver unparalleled service to ourcustomers. When doing so, we put ourselves in thecustomers’ position and develop innovative products

Resource Development▶ Human
pp.87-88

and services to meet diverse customer needs.

and Inclusion▶ Diversity
pp.89-90

Respect for Human Rights and employee
satisfaction (human rights and labor)Innovation▶ Workstylep.91

JAL Group Code of Conduct "Commitmet to Society"
WEB

6
22

https://www.jal.com/en/sustainability/codeofconduct/

1. Confirmation of Human Rights policy

WEB

https://www.jal.com/en/sustainability/
human/human-resources-management/

https://www.jal.com/en/sustainability/
human/diversity/WEB

https://www.jal.com/en/sustainability/
human/work_style/https://www.jal.com/en/sustainability/
human/health-management/

4. Review on the implementation status of the previous
year's improvement plan

4. Management review of previous year's initiatives

5. Dialogue with experts/
Establishment of important issues andimprovement plan for the current fiscal year

5.	Dialogue with external experts. Based on “Human Rights
Risks evaluation/extraction of Issues” and “Review on theimplementation status of the previous year's improvement
plan,” create proposed important issues for the current
fiscal year and an improvement plan based on dialogue withexperts and stakeholders.

6. Management review

6. 	 Report to the President on the previous year's review,proposed important issues and proposed improvement planfor the current fiscal year.

7. Reflect the previous year's review in the current
year's improvement plan

7. 	 Based on the results of management review, reflect
necessary improvements in the improvement plan for thecurrent fiscal year.

8. Confirmation of important issues and improvement plan for the current fiscal year

8. Confirm important issues and the improvement plan for thecurrent fiscal year

9. Implement important issues and improvement plan for the current fiscal year

9. Implement the improvement plan by relevant departments

10. Report internally and externally

10. Report internally and externally in the Integrated Report andover the website

https://www.jal.com/en/sustainability/
human/accessibility/of Infectious Diseases▶ Prevention
p.94

WEB

https://www.jal.com/en/sustainability/
prevent-infection-spread/

Particularly relevant areas:

All areas■In accordance with the JAL Group Human Rights Policy, we respect all stakeholders including our customers

and every employee of the JAL Group.
We strictly prohibit discrimination on the basis of gender, age, nationality, race, ethnicity, religion, social status,
disability, sexual and gender identity.
We strive to prevent physical and emotional stress to our customers when providing goods and services,prevent human trafficking by air transportation and prevent human rights violations in our supply chains.
■To achieve this, we have included human rights due diligence in our business processes, and address issues,
disclose information and continuously improve our operations.
In addition, JAL Group employees are educated on gender equality, LGBTQ issues and prevention of humantrafficking. We also take steps with regard to our supply chains (refer to Responsible Procurement).
For more information on the JAL Group Human Rights Policy, please visit the JAL website.

JAL Group Accessibility Service Policy
Based on the JAL Philosophy, which defines the basic attitude of employees, we will:
2. offer a variety of travel options to all ourcustomers; and3. co-create enjoyment and delight through travel withcustomers and society.

Flow for HRDD initiatives(Follow this flow every year to promote efforts to respect human rights.)

Dialogue with external experts
As in the previous fiscal year, we invited SHIMOTAYA Takeshi
of The Global Alliance for Sustainable Supply Chain (ASSC), a
general incorporated association that promotes international
respect for human rights, to hold a dialogue with membersof the Sustainability Promotion Committee. In the previous
dialogue, he pointed out that job security during the pandemic
could be seen as a human rights issue and we reflected thisin our initiatives. In this year’s dialogue, he provided valuableadvice on the importance of interacting with suppliers andinitiatives to promote understanding of LGBTQ. Based on his
advice, we identified important issues in HRDD for the current
fiscal year and published them on our website.

Dialogue between
ASSC Mr. SHIMOTAYA
and officers of relevant
divisions

Data Section

https://www.jal.com/en/sustainability/codeofconduct/pdf/human-rights_en1908.pdf

https://www.jal.com/en/sustainability/human/
human_rights/#due-diligence

Sustainability■All officers and employees of the JAL Group fulfill their responsibility to respect the human rights of all people.

JAL REPORT 2022

3.	 Prioritize risks based on results of human rights risks
assessments and identify human rights issues thatparticularly need to be addressed in the following fiscal yearWEB

▶ Accessibility
p.93

2. Conduct a risk survey of all Group companies

3. Human rights risks evaluation/extraction of issues

WEB

1. provide stress-free travel for all
customers:

Grievancemechanism

WEB

Basic concept83

2. Human rights risks assessment

1. Verify each year that there are no problems with the policy.
Risk
reportingWEB▶ Wellness
pp.91-92

Respect for Human Rights

WEB

Details of each step are as follows.

Medium Term Management Plan

Respecting others means respecting different culturesand values. To achieve this, we actively interact withdiverse cultures around the world.
To create productive workplaces where employees
are motivated by their work, we take pride and joy indoing our best for our colleagues.

HRDD

https://www.jal.com/en/sustainability/
human/human_rights/

The JAL Group Value Creation Storycustomers sincerely, and continuously strives toWEB

for Human Rights▶ Respect
pp.83-86

Foreword

PeopleTOP

JAL REPORT 2022

84

Chapter 4 Sustainability

Sustainability initiatives

Respect for Human Rights

Human Resource Development

Environment
Diversity and Inclusion

PeopleWorkstyle Innovation

Communities
Wellness

Accessibility

GovernancePrevention of Infectious Diseases■ Confirmation of respect for human rights inthe supply chain■ Prevention of long working hours

A garment factory in Vietnam■ Procurement of products with consideration
for human rights

In-flight meals made with ASC, GAP certified ingredients(For details on certifications, please refer to Use of Certified Products on page 104.)

It's a penalty logo

In addition to encouraging remote work throughout the
JAL Group especially in business support departments andcontrolling the number of employees who come to work, wehave established rules on coming to work and going homeand social distancing when working in the office and havedisseminated the rules in a timely manner.
In FY2021, we promoted similar initiatives and strived toprevent further infections through workplace vaccinations.

Sustainability

Workplace vaccination■ Fair and impartial hiring and promotion

For customers who feel physical or psychological barriers totravel due to disabilities, we are working to eliminate barriers
to create a stress-free environment during travel and at theirdestination so that they can enjoy travel more freely andeasily anytime.
Assisting customers at the airport■ Prevention of infectious diseases

The JAL Group has continuously worked to promote
understanding of LGBTQ and was awarded, for the sixth
consecutive year, the highest rank of "Gold" in the PRIDE Index*
established by the voluntary organization “work with Pride.”
We were also recognized for internal and external innovations
utilizing the diverse perspectives of our employees, and JAL
was recognized with the D&I Award in the “Best Workplace”
category at D&I Award 2021 sponsored by JobRainbow Inc.
We also actively communicate our gender equality initiatives,and participated in a dialogue with Airbus and an online event
on International Women's Day in March.

Illustration of Airbus LGBTQ

Data Section

Through the JAL FlySafe initiative, we are heightening ourhygiene and cleanliness standards, the basics of infectious
disease control. Even during the pandemic, we are providing
services at airports and in passenger cabins that deliverpeace of mind.

* Evaluation index of sexual minority initiatives such as LGBTQ + by companies
and organizations

Infectious disease control measures at the airport

JAL REPORT 2022

Amid the rapid decline in air travel demand caused by COVID-19, which created an underutilization of staff, we worked tomaintain employment and enable our employees to acquire new knowledge.
In FY2021, an average of 1,600 employees a month were seconded to external entities in Japan. In addition, the Regional
Vitalization Division, which was established during the pandemic, launched the JAL Furusato (hometown) Project to solve
regional issues through cross-industry collaboration using the JAL Group's knowledge, experience and technology.
As part of this project, cabin attendants selected through in-house recruitment are serving as JAL Furusato Ambassadors
and JAL Furusato Cheering Teams to promote the charms of regional areas in Japan and solve regional issues.
For employees working outside Japan, we are providing new opportunities to work outside their region through remote
work, as it will take time for demand for international flights to recover.

■ Prevention of COVID-19 to employees■ Improvement of accessibility

85

Workcation in Singapore■ Employment maintenance■ Prevention of human trafficking
The JAL Group positions unintended involvement in humantrafficking by air transport as an important human rights issue.
In FY2021, we cooperated with the "It's a Penalty Tokyo
Campaign” hosted by the British non-profit organization,It's a Penalty, and co-hosted by the Japanese non-profit
organization Sport For Smile. We also showed a video of ananti-trafficking campaign aboard JAL Group domestic andinternational flights. Furthermore, all employees are educatedon respect for human rights including prevention of humantrafficking. In FY2021, 83.8% of all employees took thiscourse.

We are taking steps to curb overtime and holiday work bycreating a system to support flexible workstyles, such aschanging working hours, introducing a super flexible system
where there are no core hours and employees can take paid
leave on an hourly basis.
We are also working to creating a system to enable
employees to take holidays more easily such as workcation,
which is working remotely while on vacation, and bleisure,which is taking a vacation during a business trip.

Medium Term Management Plan

Since September 2018, we have been progressively
replacing service goods in cabins and lounges with certified
products that conform with human rights considerations forworkers engaged in forestry, agriculture and fishery.
As a result, we prevent human rights violations such as poor
working conditions, child labor and land rights violations ofindigenous peoples.

We have established Regulations on the Prevention of Harassment in the Workplace, which define and prohibit harassment,
and specify violations that will be subject to disciplinary action.
In addition to an internal harassment hotline, we have established a 24/7 Group hotline for consultation on compliancein general and a sexual harassment hotline for cabin attendants. In this way, we are taking steps to develop a system toreceive consultations directly from our employees and maintain a healthy, harassment-free work environment.

The JAL Group Value Creation Story

We strive to build sustainable supply chains that ensure
respect for human rights, legal compliance, environmental
protection and fair labor practices. Through a selfassessment questionnaire for suppliers, we check the statusof human rights considerations through questions on equal
treatment of foreign workers, overtime, payment of wages
and other matters. As part of this initiative, in FY2022 we set
up a hotline that is open to suppliers in Japan and overseas
and developed a process for responding to reports.

■ Prevention of harassment
Foreword

Special Feature: JAL Group's efforts to respect human rights

PRIDE indicator 2021 of “work with Pride”"Gold" for six consecutive years since 2016

JobRainbow’s D&I Award 2021
D&I AwardTOP

JAL REPORT 2022

86

Chapter 4 Sustainability

Sustainability initiatives
Respect for Human Rights

Diversity and Inclusion

Human Resource Development

Communities

Workstyle Innovation

Wellness

Accessibility

GovernancePrevention of Infectious Diseases

Particularly relevant areas:

All areas

Basic concept■ Developing autonomous employees▶ Supporting employees

Foreword

7
22

Human Resource Development

PeopleEnvironment

The JAL Group refers to autonomous thinking and acting■We develop human resources based on the belief that the personal growth of JAL Group employees willcontribute to the growth of the organization and in turn the sustainable growth of the JAL Group.
■We have defined qualities expected of all JAL Group employees and will strive to improve employee■To achieve this, we will actively invest in human resource development by expanding internal and external

education and training programs and providing opportunities to become autonomous employees.

course for managers and various activities to practice JAL
OODA.
One of these activities, W-PIT*, is an in-house venture team,
where employees challenge co-creation while incorporating"excitement" into new businesses.
We are also nurturing autonomous employees through

The JAL Group Value Creation Story

engagement (understand and empathize with the company vision, the intention and attitude to think, act andcontribute autonomously to its achievement), and increase the number of employees with diverse knowledge
and experience.

as "JAL OODA" and conducts a mindset change education

programs such as the in-house entrepreneur audition called"Sozo no Tsubasa (Wings of Creativity)” to encourage
employees to challenge new business areas, and in FY2021
launched "Career Challenge” inviting employees to take up
challenges.

Priority and strategic measures* Abbreviation for Wakuwaku (exciting) Platform Innovation Team■ Expanding training programs· New Employee Orientation· JAL Philosophy Workshop· Risk Management Education· Training for Managers· Business Skills Training· Leader’s Workshop· Safety Education· Information Security Training·C areer Development Training by
Age Groupand Others

Topic

Maintenance Kaizen (improvement) activities presentation conference

The maintenance division carefully selects outstanding Kaizen initiatives in each
workplace and holds a Kaizen activities presentation conference once a year at theend of the year to encourage challenge and innovation.
Kaizen achieved through trial and error and teamwork, without treating matters thatare “difficult to ~ or likely to ~” in the workplace as someone else’s problem, has
increased solidarity in the organization and developed human resources who drive
value creation.
In addition to workplace improvements, the number of SDGs and Kaizen activities
at other divisions has increased, and so we are expanding the scope of ouractivities beyond the maintenance division.

■ Enhancing work experience through internaland external secondments▶ Career Design

We treat the rapid changes in the business environment as
an opportunity for growth, and in addition to gaining work
experience in other jobs within the Group, we seconded
around 1,600 employees a month to approximately 150
external entities including local governments, logistics
industries, call centers and educational institutions.
Secondment has provided employees with external insights
they could not have gained before the pandemic. Furthermore,increasing opportunities for work experience utilizing theknowledge they gained from secondment has led to personal
growth of each employee.
We will continue these initiatives to enhance individual
capabilities and increase the number of employees with morediverse knowledge and experience than before, which in turnwill contribute to sustainable growth and development in eachbusiness area.

opportunities for them to think about their careers, such as

JAL REPORT 2022

To encourage employees to develop their careers, we provide
providing information on the CAREER intranet webpage andhosting JAL CAREER TALK LIVE, where JAL Group employees
Working at internal and external seconded workplaces

discuss their careers.
Furthermore, in FY2022, we will introduce a Self-Career Dockfor employees to consult with Japan-certified in-house career
consultants about developing their career.
Going forward, we will continue to create an environment forcareer development and improve employee engagement.

Topic

Online training of new employees outside Japanoverseas and employees with disabilities can participate
in various education and training programs, the number ofparticipants increased to 18,250 in FY2021, 1.3 times therecord high number in FY2020.

Speakers of JAL CAREER TALK LIVE

External human resource development

The JAL Group is focused on educating university students to pass on knowledge andexperience cultivated in the airline business. We would like to develop human resources
who can contribute to the development of tourism-related industries and regional
economic vitalization and industrial promotion, while vitalizing regional economies andindustries, and developing understanding of the airline business.
Furthermore, we are expanding the scope of our education business to the generalpublic, utilizing the know-how cultivated through educational activities such as lectures atuniversities.

Data Section

As part of efforts to provide opportunities to study anytime andanywhere, we are increasing the number of training sessions
online.
By creating an environment where employees in Japan and

Kaizen activities presentation conference(Left: award presentation ceremony, Right: staff in charge of planning)

Sustainability■ Expanding online education and training
courses87< Main Education and Training Programs >Medium Term Management Plan

We have established the qualities expected of all JAL Group
employees based on the JAL Philosophy and conduct humanexchanges across the boundaries of Group companies andjob category.
We also train leaders and safety and service professionals
through specialized training in each job category, and conduct
education and training suited to each company.
Going forward, we will expand investment in human resources
and increase internal and external opportunities to gain
business skills and create value, thereby creating humanresources who drive business diversification as outlined in theMedium Term Management Plan.

A lecture by a JAL lecturer at a university

TOP

JAL REPORT 2022

88

Chapter 4 Sustainability

Sustainability initiatives
Respect for Human Rights

Human Resource Development

Diversity and Inclusion

Communities

Workstyle Innovation

Diversity and Inclusion

FY2025 Management target

Wellness

Governance

Accessibility

Prevention of Infectious Diseases

Particularly relevant areas:■ Recruitment and advancement of employees with external experience

All areas

Many of our experienced hires are active in business creation, digital promotion and other fields that require advanced knowledge. They are
creating value leveraging diverse knowledge acquired externally.
Many of these employees have been promoted to management posts and the number of employees involved in important decision-making
has been increasing year by year. We will continue to promote advancement to management posts.
To promote value creation utilizing internal and external knowledge, we will further promote fair and equitable advancement, judging
individuals for what they are, and promote the active participation of employees hired based on their experience.
In recruitment activities that resumed in February 2022, we are on the lookout for recent graduates with work experience and aim to hire
employees with diverse knowledge and experience.
We also resumed recruitment of people with experience in business planning for the first time in three years. We are hiring alumni* as well.

Ratio of female managers in JAL Group: 30% (FY2021 result: 21.9%)

Basic concept■The JAL Group promotes the values of D&I, workstyle innovation and wellness in order to create workplaces,

where employees are treated with respect and are engaged and motivated by their work.

*A hiring method of rehiring retirees from the company

create work environments where everyone can display their talents regardless of gender, age, nationality, race,
ethnicity, religion, social status, disability, sexual orientation or gender identity.

■ Promoting challenges by employees with disabilities
We are taking on the challenge of expanding areas to assign employees withdisabilities where they can use their talents and abilities.
In addition to the cafés and other facilities already in place, we opened amanicure room for employees in FY2020.
In recognition of this effort, we received a special award in the environmental
development category as an outstanding example at the ACE Awards 2021
organized by ACE*.
In FY2021, we opened a shoeshine room for employees in order to provide
opportunities for employees with disabilities to participate in the workplaceand for employees to deepen their understanding of D&I.

■To achieve this, we promote fair and equitable employment of diverse human resources, and placement andadvancement to management posts so that every employee including women and global human resources
can work energetically under a merit-based system. Furthermore, we will cultivate awareness to promote
understanding of D&I.

Priority and strategic measures

89

JAL REPORT 2022

Ratio of female managers (%)(people)
1,300

1,278

30.0%

26.0

1,100

1,053

900

799

846

15.6%
End of
FY2015853

16.3%

End of
FY2016

18.4%

16.3%

End of
FY201721.9%

882

End of
FY201919.5%

End of
FY2021

Presentation of JAL D&I Lab Activities

22.0
18.0
16.0

End of
FY2020

JAL D&I Lab, a bottom-up activity in which employees think autonomously
and promote D&I, focused on four themes: promote the participation of global
human resources, promote women's participation, promote the participationof employees with disabilities and promote life career development.
Furthermore, during JAL's Barrier-Free Mindset Week 2021 in December
2021, we held events to learn about the barrier-free mindset and the activities
of diverse employees.
Going forward, we will continue to promote D&I from both the top- down andbottom-up approach that contributes to value creation.

20.0

16.8%

End of
FY2018■Bottom-up activities by employees

24.0

983

1,000

700

30.0
28.0

1,200

800

（%）

Shoeshine service for employees

End of
FY202514.0

experience based on feedback from our global awareness survey anddirect dialogue with employees and will continue to develop humanresources under a well thought out plan.

Voice

Communicating the JAL Group's initiatives to the world

A wide range of employees play an active role in the JAL Group regardless of nationality or gender and their accomplishments are disseminated throughout
the world.
One such employee is Sze Hunn Yap who works in Singapore. She was selected as one of the Women to Watch 2020 by Campaign Asia-Pacific, one of thelargest advertising magazines in Asia, in recognition of her past work. On International Women's Day in March 2022, she was invited as a panelist at the
Women's Summit held by Equality Leaders, which promotes D&I, to present the JAL Group's D&I initiatives.
“I participated in this event as a panelist in the hope that I could be of some assistance in advancing genderequality and D&I.
The event gave me the opportunity to sit down with various women leaders from around the world and reflect
more deeply on what D&I means to me.
In addition, to mutually enhance and support each other toward common targets, it is important to createa work environment that respects the individuality and diversity of each person and allows them to freely
express their opinions, and each person has a major role to play in creating that work environment.”

Data Section

To promote the participation and advancement of employees hired
outside Japan, we are placing emphasis on developing humanresources toward advancement to management posts throughtransfers within the area and education and training programs uniqueto the area.
Approximately 40 employees hired outside Japan are working inJapan, and the percentage of employees who hold important overseas
positions such as branch managers and district officer managers isapproximately 20% as of April 2022. We intend to further increase thisnumber during the period of the Medium Term Management Plan.
During the pandemic, we conducted training online while ensuring thesafety and security of our employees and their families.
Going forward, we will further increase opportunities to broaden work

■ Number of female managers (people)*G eneral Incorporated Association Corporate Accessibility Consortium

Sustainability■ Promoting the participation andadvancement of employees hired outsideJapan

them to management posts and nurturing their capabilities. By
supporting career development through hierarchical networking andcreating a "pipeline list," we will further strengthen development,
nurture awareness of more female employees who aspire to become
leaders and develop an environment to accomplish this.

Medium Term Management Plan

As a result of striving to achieve the management target of 30% female
managers in the JAL Group, we achieved the result of 21.9% at theend of March 2022, up 2.4 percentage points from the previous year.
In particular, with regard to womenʼs advancement to Executive Officer
and Vice President-level senior management positions, one female
Executive Officer was newly appointed in April 2022.
In addition to station managers at hub airports, Haneda, Narita, Osakaand Fukuoka, we have newly appointed female employees as headsof the regional headquarters of Western Japan and Chubu Japan.
Through these initiatives, the number of women in senior managementin the JAL Group has more than doubled in the last three years, from37 to 78. Women continue to play an active role at the top leadershiplevel.
In addition to encouraging further understanding of the importance ofpromoting D&I through study sessions for leaders, we hold lectures
for female leaders on a regular basis that are delivered by top
management in order to nurture their knowledge and skills.
Going forward, we aim to develop more women leaders by assigning

The JAL Group Value Creation Story■To create an organization that promotes inclusion of diverse human resources and pursues value creation, we■ Promoting womenʼs advancement in theworkplace

Foreword

822

PeopleEnvironment

Sze Hunn Yap
CX Data Marketing Department
Global Marketing Group

Employees assigned to Japan from overseas

TOP

JAL REPORT 2022

90

Chapter 4 Sustainability

Sustainability initiatives
Respect for Human Rights

Human Resource Development

Environment
Diversity and Inclusion

Communities

Workstyle Innovation

Wellness

Governance

Accessibility

Prevention of Infectious Diseases

Particularly relevant areas:

Priority and strategic measures

All areas

Foreword

9
22 Workstyle Innovation
Basic concept

People■ Wellness
The five-year JAL Wellness 2025 plan is based on five key issues: lifestyle diseases, cancer, mental health, tobacco control and women's health. As■The JAL Group promotes the values of D&I, workstyle innovation and wellness in order to create workplaces,part of our support for working women, we have launched a joint initiative with Marubeni Corporation, CARADA medica Inc. and MTI Ltd. to address

where employees are treated with respect and are engaged and motivated by their work.

health issues unique to women, such as premenstrual syndrome (PMS) and menopausal symptoms, through workplace awareness surveys, raising■We will create workplaces where every employee, our greatest strength, can play an active role, including

awareness of women's health issues and conducting trials of online medical checkups.

employees with time constraints due to child care and nursing care.

JAL was recognized as a brand in the Health & Productivity Stock Selection for the fourth time. In addition, 20 Group companies were recognizedunder the 2022 Certified Health & Productivity Management Outstanding Organizations Recognition Program, an increase of 11 companies from last■To achieve this, we will optimize working hours and expand our remote work program. We will also promote

year. They were highly praised for working actively under the strong leadership of the Chief Wellness Officer

workcation and bleisure and contribute to regional revitalization.

The JAL Group Value Creation Story（CWO）, Wellness Leaders in the workplace and further initiatives to improve women's health, literacy onhealth through better use of the website, and mental health care during the pandemic.

Priority and strategic measures▶JAL Wellness 2025 KPIs

■ Promoting a workstyle without location constraints*Figures in brackets are actual values for FY20 (blank if no actual value). FY22 target values are shown outside the white frame.

Obesity ratio [all employees]

Breast cancer screening ratio [women employees aged 18 and above]

Breast cancerLess than 18%

Specific health checkup ratio [families]

Lifestyle-relateddiseases

37.9%

50%

Specific health checkup ratio [employees, families, special retired insured persons]

67.5%

72%

Specific health guidance implementation ratio [employees]

30.2%

45%

Women’shealthGastric cancer screening ratio [employees aged 35 and above]

60.3%

64%

Stomach■ Balancing life events and work
The JAL Group reviewed its evaluation system to ensure that our employees, regardless of gender, cancontinue to develop their career even after taking a leave of absence due to life events.
Furthermore, to raise awareness among male employees and create an environment where both parents canraise their children, from FY2022 in addition to developing paternity leave, we are encouraging employees
to take at least two consecutive weeks of paternity leave. By planning childcare leave in advance, we arereviewing team workstyles and changing employee mindsets.

Colon■ Optimizing working hours

10
22 Wellness
Basic concept

89.5%

79.0%

52% or above

12
7.9

8

8.5

9.5

74.5%
9.9

60

8.0
4.0

FY2017

2018

2019

2020

2021

* Japan Airlines Co., Ltd. only

Particularly relevant areas:

2025
Target20

Percentage of people with high stress [employees]

Less than 24%

Percentage of e-Learning participants [employees]

50%

60% or above

Percentage of wellness activities by company and regions [employees]

40%

60% or above

Regularly exercise [employees]

55.6%

58% or above

Restful sleep [employees]

Lifestyle(specific healthcheckupquestionnaire)Less than 6.5%

76.5%

78% or above

Moderatio eating speed [employees]

60.6%

64% or above

Consumption of alcohol within the recommended Government Guidelines [employees]

87.4%

88.5% or above

Male employees

40

4
0

60%
Mental healthWellness activities

60%

Re-examination ratio

80

71.5%

75%

Colorectal cancer screening ratio [spouses aged 35 and above/special retired insured persons]

100

86.0%

16

Health literacy

Re-examination ratio

100%

20

60% or above
28%

42%

35.3%

■ Average monthly overtime/working hours on holidays per employee
Percentage of annual paid leave applicants (%)

19.3% 32% or above
Re-examination ratio

Smoking

0

26.3%

Less than 24%

Sustainability

The JAL Group believes that the growth of a company can be achieved by using time generated by working
efficiently to external experiences, personal development, and mental and physical refreshment, andreturning the experience and value to the company.
To achieve this, we are working to ensure proper working hours together with annual paid leave in a planned
manner. Despite the increased workload in business support departments caused by COVID-19, we
promoted flexible workstyles and achieved a 74.5% improvement in annual paid leave applicants in FY2021(71.5% in FY2020).
On the other hand, since the average monthly overtimes hours worked per employee was 9.9 (8.0 in
FY2020), we will continue to work to optimize working hours through flexible workstyles.

26.1%

72.7%

Overtime work and annual paid leave applicants*

54% 56% or above
Uterine cancer screening ratio [spouses aged 18 and above/special retired insured persons]

Women with excessively low BMI [women employees under 34]

Colorectal cancer screening ratio [employees aged 35 and above]

Workstyle workshop

32% or above

60%

60%

Cancerscreening

27.4%

Re-examination ratio

60% or above

Gastric cancer screening ratio [spouses aged 35 and above/special retired insured persons]Re-examination ratio

64% or above

Medium Term Management Plan

Re-examination ratio

60.4%

Breast cancer screening ratio [spouses aged 35 and above/special retired insured persons]Uterine cancer screening ratio [women employees aged 18 and above]

Uterine cancer

19.8%

JAL is the first airline to receive the Awards of the Minister of Internal Affairs and Communications in the2021 Top One Hundred Telework Pioneers organized by the Ministry of Internal Affairs and Communications,in recognition of Group-wide remote work, business process innovation, and promotion of new workstyles
such as workcation and bleisure.
In December 2021, we set up a workstyle study group aimed at increasing corporate value, vitalizing regions
and achieving the SDGs through diffusion and promotion of new workstyles with a focus on workcation. We
will carry out various activities centered on workcation with companies and local governments.
The JAL Group will continue to promote flexible workstyles to cultivate an environment where diverse humanresources can work energetically.

Female employees

4.2% Less than 3.7%

■ Promoting wellness of our customers
All areas■The JAL Group promotes the values of D&I, workstyle innovation and wellness in order to create workplaces,

where employees are treated with respect and are engaged and motivated by their work.

To ensure that our customers enjoy their journey in good health, we plan in-flight meals that give consideration to effects on their health and better
nutrition intake, and disclose necessary information.
In 2020, we collaborated with Dai Nippon Printing Co., Ltd. and launched “JAL Wellness & Travel,” a new mileage service that supports daily healthand wellness activities before and during travel.
We will combine the strengths of both companies to create services for customers to earn miles and enjoy a healthy life so that they can go on theirnext trip.

■In addition to health and safety management, we will promote the physical and mental health of our employees■To achieve this, we will promote wellness through the JAL Group health promotion project "JAL Wellness 2025"

by raising awareness of health, while helping each other with our health issues.
We will also provide products and services that contribute to the health of our customers.

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Topic

"Fly for it! Let's work out! Tokyo 2020 countdown exercise"Starting from 100 days to go until the Tokyo 2020 Olympic Games began, athlete-employees and Wellness
leaders held a total of four monthly “radio exercises" and “stretching and training” online events for employees
in Japan and around the world.
Furthermore, every day for 100 days, we uploaded and showed an exercise video that anyone can easily do
anytime to pass the baton for better health.

Data Section

and their families so that employees can work energetically and in good health. Furthermore, we will strive tocontribute to the health of all stakeholders.

JAL athlete-employees introducing
the countdown exercise

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92

Chapter 4 Sustainability

Sustainability initiatives
Respect for Human Rights

Diversity and Inclusion

PeopleCommunities

Workstyle Innovation

Accessibility

Wellness

Accessibility

GovernancePrevention of Infectious Diseases

Particularly relevant areas:

Passengers

12
22

Basic concept

Basic concept■The JAL Group aims to create a society where everyone can enjoy an enriched life through travel, and is■As the responsibility and mission of social infrastructure, the JAL Group is■We have established the JAL Group Accessibility Service Policy to build a society where everyone can enjoy a■We provide customers with a hygienic and clean environment of the world’s

fulfilling life through travel free of barriers related to aviation and at travel destinations

highest level. We will also fulfill our responsibility as an international carrier.

■To achieve this, we are promoting the “barrier-free mindset” of all employees to be more attentive to each

Priority and strategic measures■ Provision of information

Priority and strategic measures■ Creating a hygienic and clean environment attouchpoints

content from the customerʼs
perspective. We planned andconducted accessible tours that
customers can enjoy with peaceof mind.

■ External collaboration▶ Cooperation with the Kao GroupIn addition to basic infection control measures such as disinfection andwearing masks, the JAL Group was the only Japanese airline to apply
3-4 day Accessible Okinawa
Tour on a Wheelchair

It is important to deepen
coordination with stakeholders and join hands to promotebarrier-free activities from pre-trip preparations to activities atthe destination.
To ensure safe and secure travel for all customers, theJAL Group and ANA, with the participation of people withdisabilities, created Service Guidelines during the COVID-19
Pandemic, and held meetings to exchange views on
promoting the understanding of people with disabilities within
the airline industry.
In recognition of efforts beyond company boundaries, JAL
received the 15th MLIT Ministerʼs Award for the Promotion ofBarrier-Free Environments.

Furthermore, to further pursue hygiene and cleanliness, this fiscal year weare coordinating with the Kao Group, which provides infectious disease
control solutions to medical facilities with their expertise, under the slogan“Taking Cleanliness to a Higher Level." The Kao Group supervised andimproved our cleaning manuals for airports, aircraft and other facilities,
and we are managing hygiene based on advice from the department
specializing in hygiene.

■ Preventing the spread of infectious diseases
through the transportation of pharmaceuticals
In addition to transporting vaccines from Belgium and to various partsof Asia.
Leveraging JAL's strengths cultivated in cargo transport, such astemperature control and monitoring of transport times and cargoconditions, we formed a cold chain system for vaccines enabling
appropriate transportation.

Presentation of the 15th MLIT Minister’s Award for the Promotion of Barrier-Free Environments

Transporting Paralympic athletes for the Tokyo 2020 Games
Games and traveling to their training camps. By assisting them with boarding and disembarking in wheelchairs
and carefully loading their equipment in Japan and overseas, they were able to use our flights with peace ofmind. In addition, we were able to convey the spirit of Japanese hospitality to customers around the world
through close communication.

Introducing new cleaning
tools to promote effective andefficient hygiene and cleanliness

Triple award for infectious disease control by external associations
JAL was awarded the world's highest rating by airline rating agencies APEX*1 and SKYTRAX*2*3 in recognition of JAL FlySafe infectious disease
control initiatives.
In December 2021, JAL became the only Japanese airline to receive APEX "WORLD CLASS" in recognition of our world-class service quality andsustainability initiatives in addition to infectious disease control.
To build a society where people feel peace of mind even during the pandemic, we will continue JAL FlySafe initiatives, which put safety and peace ofmind first.

Data Section

At the Tokyo 2020 Games, we welcomed many Paralympic athletes and assisted them in participating in the

JAL REPORT 2022

mobile ordering for guests in lounges using their own smart devices.

transportation of vaccines to Taiwan, Indonesia, Malaysia and other parts

In FY2021, we launched “3-4 day Accessible Okinawa Touron a Wheelchair" an individual tour that allows participants tofreely choose dates, flights and barrier-free accommodations
and activities. An employee who uses a wheelchairparticipated from the planning stage, joined the tour anddemonstrated diverse talents such as carefully selecting

TAJIMA Yukari
Planning Group

automatic check-in kiosks and Self Baggage Drop machines and testof Japan including outlying islands, JAL played a role in supporting the■ Accessible tourism

Voiceantiviral and antibacterial coatings at all touchpoints, install touchless

Sustainability

To erase any concerns before the trip, we post information on
boarding assistance and the joy of travel on our website forcustomers who request assistance. We also offer the Airport
Experience Program (online) to experience the entire processfrom booking to boarding to ease concerns.

initiative, which aims to prevent infectious diseases at all touchpoints. We will also respond to requests fromsociety such as the transportation of vaccines.

Medium Term Management Plan

To provide a stress-free customer experience, we haveintroduced an In-flight Service Guide (with braille, enlarged
letters and voice codes) and are taking steps to improvecustomer service skills by developing in-house qualifications
for cabin attendants.
In addition to domestic check-in counters at Haneda Airport,
we have renewed counters at Osaka (Itami) for customers withdisabilities in order to make airports easier to use and more
comfortable.
We will use our experience in the transport of Paralympic
athletes to the Tokyo 2020 Games to support the mobilityof athletes with disabilities around the world, and improve
hospitality and services to deliver greater peace of mind to
customers with developmental impairment.

■To achieve this, we will utilize digital technology and coordinate with partners with expertise in the JAL FlySafe

The JAL Group Value Creation Storycustomer so that everyone including people with disabilities who experience mobility barriers can enjoy travel
more freely and easily anytime. We will also develop a seamless, safe and secure mobility environment bydeepening partnerships with various parties.

■ Development of an environment

Cargo and Mailcommitted to preventing the spread of infectious diseases and building a society
where everyone can live safely and with peace of mind.

working to improve accessibility to provide unparalleled service to all our customers.

93

Passengers

Prevention of Infectious Diseases Particularly relevant areas: Mileage, Lifestyle and Infrastructure

Foreword

11
22

Human Resource Development

Environment*1 APEX (Airline Passenger Experience Association): One of the world's largest airline industry associations based in North America. An NPO consisting of member airlines, airports,
and airline suppliers around the world.
*2 SKYTRAX: A global air rating company based in London, U.K.
*3 JAL received APEX's Diamond in the "Health Safety Powered by SimpliFlying Audit," SKYTRAX 5-star in the "COVID-19 Airline Safety Rating,” the COVID-19 Excellence Award
at World Airline Award 2021, and the three highest ratings in external evaluations of infectious disease control.

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94

Chapter 4 Sustainability

Sustainability initiatives

Route Network Expansion

Environment

Promotion of Inbound Tourism

Communities

PeopleRegional Revitalization

Convenience in Mobility and Daily Life

GovernanceDisaster Assistance Restoration

Community Relations

Communities

FY2025 Management target

Basic Concept (JAL Group Code of Conduct)

Mission and responsibility as acorporate citizen
We are grateful to play a role in delivering social infrastructure andrepay our gratitude by fulfilling our mission as a public transport
operator.

(2) Responsibility as a company that plays a role in social
infrastructure
The JAL Group manages risks as an organization to be preparedagainst terrorism, cyber-attacks, natural disasters and otherevents that threaten civil life and corporate activities. In the eventof a natural disaster, we strive to resume air transport services as
quickly as possible, cooperate in disaster recovery efforts throughair transport, and fulfill our social mission and responsibility as apublic transport operator that plays a role as social infrastructure.

JAL Group Code of Conduct "Commitment to Society"
WEB

13
22

https://www.jal.com/en/sustainability/codeofconduct/

Challenges to be solved

Network Expansion▶ Routep.95

of Inbound Tourism▶ Promotion
p.95▶ p.96

Regional Revitalization

https://www.jal.com/en/sustainability/community/network/

Domestic passenger*2 and Cargo transport volume +10% vs. FY2019

https://www.jal.com/en/sustainability/community/inbound/WEB■To achieve this, we will create objectives and programs to visit communities, develop products, expand sales
channels, conduct environmentally-friendly activities and create programs to preserve the natural environment.

WEB

https://www.jal.com/en/sustainability/community/regional_revitalization/

WEB

p.97

https://www.jal.com/en/sustainability/community/maas/

Disaster Restoration▶ Assistance
p.97

Relations▶ Community
p.98

WEB

https://www.jal.com/en/sustainability/community/disaster/WEB

https://www.jal.com/en/sustainability/community/community_relations/

Particularly relevant areas:

Passengers

Cargo and Mail

Mileage, Lifestyle and Infrastructure

Priority and strategic measures■Creating people flow

As a “farm business” that creates people flow to communities (rural, mountainand fishing villages), we held Agricultural Training 2021 last fiscal year.
Starting this fiscal year, we will develop it into a JAL Furusato (hometown)
Working Holiday to visit mountains under the concept "More than tourism but
not to the extent of migration."
We will also contribute to improving the quality of farm stays by establishing
the Farm Stay Quality Assessment Support System and increasing facilities
that guests can use safely and with peace of mind. This will contribute to thedevelopment of local economies and communities.
In addition, by promoting purpose-driven trips under the theme "community
tourism," we will work to create a purpose and system for visiting communities,
thereby creating people flow.

JAL Agricultural Study 2021 in Hirado, Nagasaki■Creating commodity flow and logistics flow

■To achieve this, we will adjust routes and use resources of the JAL Group's community-based regional carriers(J-AIR, JAC, HAC, JTA, RAC). In addition, we will provide a system to encourage a hybrid workstyle andlifestyle that "balances life in the city and countryside."

Particularly relevant areas:

Passengers

Cargo and Mail

Mileage, Lifestyle and Infrastructure

Basic concept■We will provide air route networks and create and communicate regional attractiveness.
■To achieve this, we will use route networks and sales networks that connect Japan with the world, which we haveestablished with our partners, as well as JAL Group's regional airlines that provide community-based services. We
will continue to provide travel products and fares that are easy to use for visitors to Japan.
We also assist overseas airlines entering the Japanese market with consigned services.

Through planning and development by JAL Furusato Ambassadors, whohave moved to regional areas to carry out community-based activities, we will
uncover excellent local products (primary products, processed goods, andcrafts) and create value.
In addition, we made sweets using local ingredients from recipes created by
the JAL Furusato Cheering Team, which was branded as “JAL Sweets Box
with JAL cabin attendants.”
We will not only sell products but also introduce their background and regional
culture on the JAL Furusato Nozei (hometown tax payment) site and crossborder EC sites to convey regional attractiveness through local products andattract visitors to the region.

The first JAL Sweets Box■Environmental initiatives
In registered World Natural Heritage Sites, we will continue to conduct naturefriendly activities that do not lead to over tourism, while creating tours, using
zero-CO2 emission EV buses, and learning about nature conservation.
In addition, we will create objectives and programs to think about communities
and the natural environment, such as expanding services using J-Credit as acarbon offset program and workcation to plant trees while working remotely.
In addition, we will accelerate various initiatives, such as food loss measuresand agricultural diversification of nonstandard products.

Data Section■To contribute to communities as a social infrastructure, the JAL Group is working to build a future, where thegovernment's target of 60 million international visitors in 2030 travel to rural areas. We will also contribute toregional revitalization by attracting inbound demand to regional areas across Japan.

▶Product development and branding

Sustainability■To expand route networks, we will work to maintain and develop outlying island routes and regional routes, andincrease traffic between cities and rural areas.

Promotion of Inbound Tourism■To contribute as a social infrastructure, the JAL Group will tackle solve issues such as creating sustainablecommunities and preserving the natural environment to vitalize regions.
■In building sustainable communities, we will utilize our air network to connect rural areas with urban areas and theworld and to connect people with people. We will use our know-how to provide solutions, from creating regional
attractiveness to building systems, in order to create people flow, commodity flow and logistics flow. We will also
promote initiatives that contribute to the preservation of the natural environment.

Convenience in Mobility and▶ Daily Life

Route Network Expansion

JAL REPORT 2022

Mileage, Lifestyle and Infrastructure

Basic conceptWEB■To contribute to communities as a social infrastructure, the JAL Group aims to build a future where people andgoods move freely between cities and rural areas. Maintaining community lifelines is our social mission.

95

Cargo and Mail

* Increase in the number of passengers by stimulating tourism demand and creating new flows.

Basic concept

14
22

Passengers

Medium Term Management Plan

(3) Responsibility as a corporate citizen
The JAL Group contributes to solving social issues and promotingsocial development as a corporate citizen by nurturing the next
generation, supporting culture and sports, and cooperating withdisaster recovery operations, regional exchanges, international
cooperation and other activities.

Particularly relevant areas:

The JAL Group Value Creation Story(1) Contributing to regional revitalization through our business
The JAL Group contributes to the sustainable development ofregions across Japan that support our air transportation business.
To achieve this, we make efforts to enhance the appeal andvalue of regions using our know-how accumulated in the aviation
business and networks, and contribute to vitalizing regional
economies by expanding flows of people and goods.

Regional Revitalization

Foreword

15
22

Yanbaru Forest Nature Tour with GuideTOP

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96

Chapter 4 Sustainability

Sustainability initiatives
Route Network Expansion

Promotion of Inbound Tourism

Convenience in Mobility and Daily Life

Regional Revitalization

Convenience in Mobility andDaily Life

Communities

PeopleGovernanceDisaster Assistance Restoration

Community Relations

Particularly relevant areas: Mileage, Lifestyle and Infrastructure

Basic concept

1822Community Relations

Particularly relevant areas:

Basic concept■In order to contribute to communities as a social infrastructure, the JAL Group will tackle social issues andrespond to changing customer needs and improve mobility and convenience in everyday life.
■Combining our know-how, human skills and customer base with new technologies, we will develop products
and services that make everyday life and life stages even better.

* Mobility as a Service. A new mobility concept of treating all transport modes as one service and providing seamless transportation.

■As a good corporate citizen, the JAL Group aims to build better relationships with stakeholders and contributeto the development of society.
■As part of our corporate citizenship activities, we will use our know-how as an airline company to create
opportunities to think about the future of the environment and society, foster the next generation, support
culture and sports, and work with various stakeholders. We also support volunteer activities by our employees.

Priority and strategic measures■JAL SORAIKU®

Priority and strategic measures■Seamless transportation
We launched a new initiative, JAL MaaS, to provide one-stop information on mobility and solve local transportation problems.
On the theme of solving problems in regional logistics that support life in remote islands using drones, we conducted Proof ofConcept test flights in the Amami Islands of assisting the residents with shopping and delivering pharmaceuticals.
Aiming to be a regional logistics infrastructure, we would like to turn this project into a business in FY2023. Going forward, we
aim to expand the network to airports and contribute to expanding sales channels for local specialized goods to markets outside
prefectures such as metropolitan areas and overseas.

Amami Airport
Consider on-demand delivery of daily
necessities, medical supplies anddisaster relief supplies

Amami-shi
Kikai-cho
Consider on-demand delivery
and logistics of medical andpharmaceutical products

KoniyaSeso

JAL MaaS (illustration)

Yoro

Disaster Restoration Assistance

Ikeji

IkenmaCreate a better and sustainable world by
reducing the distance between people,
goods and experiences around the world.

Particularly relevant areas:

All areas

Basic concept■We will cooperate in providing air transport to maintain and restore transportation networks in the event of adisaster and providing other assistance for reconstruction.
■To achieve this, we will secure air transport in the event of a disaster by operating temporary flights andmaintaining a transport system for relief supplies and relief personnel in collaboration with the government, local
governments, NGOs and NPOs. We will also work with local governments to promote industries and generate
tourism demand.

Priority and strategic measures■Securing air transportation and supporting affected areas●August 2021: Provided relief supplies to areas affected by heavy rain
●Employee fundraising for massive volcanic eruption and tsunami off thecoast of Tonga
97

JAL REPORT 2022

Fundraising by employees
309,271yen

FY2019FY2020

FY2021

191,840

20,43550,147

An online class on the job of cabin attendants■Distribution of educational content
We offer JAL STEAM SCHOOL, a class in which pilots explain the world of aircraft and aviation fromthe perspectives of STEAM *1. In addition, JAL STEAM SCHOOL Portable, an interactive programthat summarizes the contents of the class in an easy-to-understand manner, is exhibited in science
museums and other venues throughout Japan to provide opportunities for more people to develop
their creative thinking skills.
Furthermore, in collaboration with DOCOMO gacco, we introduced "People who Work in Airline
Industry"*2 presented by JAL Group employees in gacco ®, a video learning service.

Children experiencing JAL STEAMSCHOOL Portable■Supporting culture and sports
The JAL Foundation holds the World Children's Haiku Contest for children around the world toprovide them with an opportunity to deepen their understanding of Japanese culture and cultivate
their sensitivity.
In addition, in support of a D&I society that recognizes individual differences and promotes active
participation, we cosponsor "Challenge for Tomorrow"*3. From FY2022, we have been supporting“Challenge for Tomorrow”*4 and are working to further promote a barrier-free mindset throughparasports so that everyone can feel the importance of challenging themselves to something new.
Results (past 3 years)
Fiscal year

FY2019FY2020

FY2021

Participating schools

287 schools

129 schools

277 schools

Number of people(41,889 persons)(12,559 persons)(23,960 persons)

An elementary school student trying
out wheelchair basketball (Provided
by the Nippon Foundation Parasports
Support Center) universal teaching method that combines the comprehensive study of Science, Technology, Engineering, Art and Mathematics. It is an educational philosophy that
*1 A
adds creativity education to science and mathematics education, aimed at cross-disciplinary learning to create a cycle of learning (seeking) and making (creating).
*2 Already closed.
*3 A hands-on para-sports class for elementary, junior high and high schools hosted by the Nippon Foundation Parasports Center*4 Education and training programs by para-athlete instructors for students and all generations across Japan, including companies and local governments

Voice

World Cleanup with JAL Group employees worldwide
The Kuala Lumpur branch is working to reduce the use of plastic. We felt it necessary to show more of our commitment
to protecting the planet and the children of the future through our daily activities, so we volunteered to participate inWorld Cleanup Day, a global citizens movement to clean up streets.
The participation of more than 300 employees and their families not only from the Kuala Lumpur branch but also fromother branches all over the world raised awareness of our contribution to society and the achievement of the SDGs.

FY2021 assistance results
Massive volcanic eruption andtsunami off the coast of Tonga

Fiscal year
Number ofpeopleData Section

In response to the earthquake off the coast of Fukushima Prefecture in March 2022, from the day after the earthquake we increased
scheduled flights to and from the Tohoku region, assigned larger aircraft and operated extra flights (March to April: 672 flights) tomaintain and secure air transport for the people in the Tohoku region.
In addition, we conducted the following activities to provide assistance for natural disasters that occurred in Japan and overseas.

JAL SORAIKU ® aims to provide students with the opportunity
to think about their future and the future of the global
environment by exploring the wonders of the sky and the joy offlying. It is offering online classes, SORA-ECO classes, origami
plane classes and virtual JAL Factory Tours as activities thatcan be done during COVID-19.
Taking the advantage of being able to participate fromeverywhere, we offered online courses to Japanese schools
overseas. We are also conducting joint initiatives with local
governments.

Sustainability■The JAL Group will support the reconstruction of areas affected by disasters to contribute to communities as asocial infrastructure.

Number of JAL SORAIKU® participants (past three years)

Medium Term Management Plan

Connect distribution points on islands(Example: expanding sales channels for specialty
products by reducing transport time to the airport)

Develop a transport network with
eVTOLs in the future

The JAL Group Value Creation Story■To achieve this, we will introduce a MaaS* platform that supports search and arrangement of transportationfrom airports. In air mobility, we will utilize our expertise in flight safety technology and operations control toachieve seamless transportation.

17
22

All areas

Foreword

16
22

Environment

MOHD ANUAR NURZULAIKHA
Kuala Lumpur Cargo OfficeTOP

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98

Chapter 4 Sustainability

Sustainability initiatives

Environment

PeopleRobust Risk Management (strengthening BCM)

GovernanceCommunities

Fair Business Practices (compliance)

Disclosure

Responsible Procurement

Priority and strategic measures■Implementation of the risk management cycle

Basic Concept (JAL Group Code of Conduct)

Trust with stakeholders

Fair Business Practices (compliance)

We comply with laws and rules and conduct ourselveswith honesty and integrity as a member of a company
that is genuinely trusted by society.
(1) Reinforcemeent of compliance(2) Prevention of corruption(3) Fair business relations with business partners(4) Free and fair competition(5) Management of personal information and intellectual
property(6) Elimination of antisocial forces

Challenges to be solved

Robust Risk ManagementWEB

pp.99-101

https://www.jal.com/en/sustainability/
governance/riskmanagement/▶ (Promotion of BCM)

Fair Business Practices

WEB

pp.101-102

https://www.jal.com/en/sustainability/
governance/fair-business-practices/▶ (compliance)▶ Disclosure
p.102

WEB

https://www.jal.com/en/sustainability/
governance/information-disclosure/

Procurement▶ Responsible
pp.103-104

WEB

https://www.jal.com/en/sustainability/
csr-procurement/

JAL Group Code of Conduct "Commitment to Society"1922

https://www.jal.com/en/sustainability/codeofconduct/

Robust Risk Management (Promotion of BCM)
Particularly relevant areas:

All areaseach organization can achieve their targets.
1
7
Changes in the business environment
domestically and internationally
Progress management,
residual risk assessment(includes review, training, auditing, etc.)
Entire JAL Group
Overseasregional
headquarters

Division A

6
Response
risks

Dept.
A-1

Dept.
A-2

2
Confirm the mission, goals,
and targets of eachorganization

GroupairlineGroupcompany

3
Identify risks

54Clarify priority risks

Update the risk map

capabilities have been highly evaluated by rating agencies.

To fulfill our mission as a public transportation operator thatplays the role of a social infrastructure, we have establishedindividual BCPs for unknown viral infections, large-scale
IT disruptions, and an earthquake that strikes Tokyo, while
promoting universalizing business continuity management
which doesn't depend on a cause of incident.
In response to COVID-19, we activated the BCP for unknown
viral infections in January 2020.
As for an earthquake hitting the Tokyo metropolitan area, as
JAL Head Officeʼs central functions are concentrated in Tokyo,
we set up the Operations Control Center, Osaka branch. We
are also improving the BCP and conducting training using theknowledge of external experts so as to continuously improve
BCP effectiveness. The JAL Group's business continuity

In March 2020, we received a DBJ BCM rated
loan from the Development Bank of Japan(DBJ), and the rating results commended Japan
Airlines for “particularly advanced business
continuity initiatives.”

Basic concept■To keep trustworthy, the JAL Group comprehensively manages risks in its business activities.
■We will strengthen robust risk management including BCM and improve information security measures including■Promotion system

Board of Directors
President
Flight safety

Group Safety Enhancement Council
Group Operational Safety Promotion
Committee

Other than flight safety
Group Risk Management Council
Risk Management andInformation Security Committee

・The person in charge (leader of organization where the risk has
occurred) responds by assembling people deemed necessary.
・The person in charge advises the person responsible for determining
the level of risk to shift to Level Ⅱ or Ⅲ according to the severity ofthe situation.

Level II

Response by special committee

・A committee is formed by Vice Presidents of main departments withVice President of Risk Management as Secretariat and risk response
is implemented. Vice President of Risk Management advises the
person in charge of determining the risk level to shift to Level III or I
depending on the situation.

Level III

Response by Command Office・A Command Office chaired by the President (or Executive Vice
President) is set up and normal operations system quickly shift tothe crisis management system.

Voice

HAKAGAWA Karin
Passenger Service, Kochi Airport

Kochi Airport's response to the Nankai trough earthquake: Collaboration with Keio University
I participated in an earthquake and tsunami disaster prevention exercise at Kochi Airport conducted as a joint
industry-university research project with Keio University.
Under the scenario supervised by Associate Professor OKI Satoko, Faculty of Environment and Information
Studies Graduate School of Media and Governance, we were absorbed in responding to situations that were far
beyond our expectations.
Through the exercise, I realized how important it is to "think and act for yourself" to protect your life. I was
reminded of the importance of greetings and gratitude, and building trust among staff.
To protect as many lives as possible, I believe that awareness of our behavior and mission will change the entire
outcome. I will perform my duties to prepare for that day.

TOP

JAL REPORT 2022 100

Data Section

To proactively control JAL Group's risks, we have established the Group Risk Management Council chaired by the President andcomposed of Senior Vice Presidents of each business area. For prioritized risks identified through screening by risk surveys, we
review the status of risk controls against them semiannually and decide on further improvements, as needed.
A subcommittee has been established to deal with financial risks and information security risks in more detailed and more frequently.
Responses to prioritized risks assessed and decided by the subcommittee are reported to the Board of Directors, where further
measures are discussed as necessary, creating a multi-layered risk governance structure for the interests of our stakeholders.

JAL REPORT 2022

Response by the person responsible for handling the risk

Financial Risk Committee

Business risks Operational risks

99

The JAL Group has established a system for the responsible
person to quickly determine the level of crisis management(Levels I to III) according to the situation and to take immediate
action in the event we detect or confirm the occurrence, or
threat of, a risk impeding flight safety and security, a natural
disaster, pandemic, and other risks to air transport.
In recent years, in response to BCP activation on the outbreakand spread of COVID-19 and on safety and security risks
in certain regions and airspace due to the Ukraine-Russian
situation, we have established a task force to gather andanalyze information and take appropriate action. We also
conduct drills regularly and enrich education and training toraise staff awareness of crisis management.

Level lSustainability

cybersecurity.
■To achieve this, we have established a Group-wide risk management system to identify and respond to prioritized risks,
and are developing a system to respond promptly when risks emerge.
We will also strengthen business continuity management (BCM) for unknown viral infections, large-scale IT failures andan earthquake that strikes the Tokyo metropolitan area. Information security measures include the establishment of amanagement system and a threat monitoring system, and security for all employees.

■Development of a crisis management system

Medium Term Management PlanWEB

■Development of BCP (Business ContinuityPlan) and training

We implement the risk management cycle regularly so that

The JAL Group Value Creation Story

The JAL Group ensures fair disclosure while
maintaining a constructive dialogue with a broad rangeof stakeholders in order to achieve sustainable growthand increase corporate value.
(1) Disclosure and dialogue(2) Prohibition of insider trading

The JAL Group defines risk as "an event or action thatthreatens the achievement of the mission, purpose or targetof an individual or an organization," mandating all organization
leaders to manage with their own risks as the risk officer.
In implementing preventive risk management, risk officers
conduct risk assessments twice a year to identify prioritizedrisks and take risk measures. CSA, i.e., (Risk) Control Self
Assessment, is provided the organiztion at stake to reassess
and improve and improves risk responses through a workshopstyle self-assessment and provides risk consulting, as needed.

Foreword

GovernanceEnvironment

Robust Risk Management (strengthening BCM)■ Information Security Measures

Fair Business Practices (compliance)▶Information security

20
22■ Number of breaches of Code of Conduct in FY2021
The number of fines and sanctions imposed on JAL and subsidiaries for violation of laws and regulations is zero.

Transportation ISAC

Item (Relevant Code of contact items in parentheses)

Aviation-ISAC

Relevant authorities

in collaboration with an external specialized organization. In the eventof an incident, we have established the CSIRT (Computer Security
Incident Response Team) in accordance with the Risk Management
Manual to respond to incidents and prevent recurrence.
Furthermore, an annual audit is conducted by an external specializedorganization, and we have recently introduced secure terminals forremote work and fully encrypt and constantly monitor communicationsof our terminals even outside the company.
*1 An organization that promotes activities contributing to the improvement of collective
defense capabilities of businesses in the transportation sector*2 A global information-sharing organization composed of airlines, aircraft manufacturers, etc.
*3 Safety guidelines to ensure information security in the aviation sector

Particularly relevant areas:

All areas

competition, manage personal data and intellectual property, and eliminate relations with antisocial forces.
■To achieve this, we will raise awareness of all employees on behavior and compliance based on the CodePriority and strategic measures

We have established reporting and consultation desks inside andoutside the company that can be used by anyone working in the
JAL Group (24/7, available in Japanese and English languages).

101 JAL REPORT 2022

Antitrust violations (Free and fair competition)0

Insider Trading (Prohibition of Insider Trading)0

Information leakage (Management of personal information and intellectual
property)

0

Particularly relevant areas:

All areas■When making disclosures, we strive to provide complete information and engage in constructive dialogue withshareholders, investors and other stakeholders.
■For this purpose, in order to make the JAL Group's corporate stance easily accessible, various information

is available on the JAL website, including JAL REPORT, an integrated report on finance and ESG, JAL Group
Safety Report, which summarizes JAL Group's stance and initiatives on safety, and information on thecorporate philosophy, company profile, safety and quality, sustainability and investor relations. We also makedisclosures about our business plans and financial results in a timely, fair and appropriate manner.

Priority and strategic measures■ Appropriate disclosure■ Communication with shareholders

In order for our stakeholders to comprehensively understand our latest
situation, the JAL Group works to increase the quality of disclosed
information as well as focus on two-way communication. Our stance
was highly evaluated, thus we received 1st place for the transport
sectorʼs “2021 Award for Excellence in Corporate Disclosure” fromThe Securities Analysts Association of Japan, for the third time in thelast four years.
Due to the uncertain nature of demand recovery in FY2021, theconsolidated financial forecast was undecided. In this situation, the“break-even matrix” was disclosed to provide our investors andanalysts with a better image of the conditions required for a positive
EBIT and EBITDA. This method of creatively meeting the needs of ourinvestors was highly evaluated, and thus we were awarded the “IRGood Visual Award” from the Japan Investor Relations Association for
two years in a row.

In addition to posting information on the corporate philosophy,
management strategies and plans on our website for easy viewingof our corporate stance, we also provide various opportunities
for dialogue. In FY2021, as part of our efforts to strengthencommunications, we began livestreaming of our shareholders'meetings and accepting questions in advance, opening a website
dedicated to shareholders and launching the "IR Mail" service, which
delivers IR-related information in a timely manner.
In addition to resuming JAL Factory Tours, we held online briefings on
our environmental initiatives to facilitate participation by shareholders
living far away to deepen their understanding of the JAL Group.
Going forward, we will continue to enhance and improve the quality ofDisclosure to achieve better dialogue with shareholders and investors.

In addition, individual consultation desks have been set up in
at each Group company to detect and correct misconduct
throughout the JAL Group. In FY2021, there were 110
whistleblowing incidents. We also conducted in-house training on
the revised Whistleblower Protection Act.

For employees to correctly understand the company's situation whena Medium Term Management Plan or quarterly financial results areannounced, we not only distribute in-house newsletters immediately
but also produce easy-to-understand commentary videos, which canbe viewed on demand by employees around the world.

■ Anti-corruption efforts

In the JAL Group Code of Conduct “Commitment to Society,” wedeclared to prevent corruption and money laundering to pursue
profits in a fair and just manner.
In addition, as we expand our business globally, we will comply
with applicable laws and regulations and international conventions
in each country and region. To achieve this, we are developing anorganizational structure through education for Vice President-level
employees and periodically reviewing the anti-corruption system.

■ Timely and easy-to-understand information
to employees

The “break-even matrix” that received
the “IR Good Visual Award”

Integrated report, “JAL REPORT
2021” was highly evaluated and wasawarded an award for excellenceby “Nikkei Integrated Report Award2021” hosted by Nikkei Inc., for its
level of disclosed information.

Data Section■ Establish consultation services

0

Sustainabilityof Conduct through education. Additionally, we will develop a consultation desk to ensure early detection of
misconduct.

To realize ethical behavior by JAL Group employees, we conduct
education on compliance including anti-corruption (twice a year)
for all employees, seminars for officers and grade-based education
to improve education.

Human rights abuse (Respecting human rights and diversity)

disclosures to achieve transparency and better dialogue with a wide range of stakeholders.

■To achieve fair business practices, we strive to ensure compliance, prevent corruption, engage in free and fair

■ Enhance employee education0■In order to remain a company trusted by society, the JAL Group strives to enhance and improve the quality ofExternal specialized organization■The JAL Group will conduct its business in a fair manner to continue to be a company trusted by society.

To reinforce compliance throughout the JAL Group, we haveestablished the JAL Group Compliance Network, consisting of
officers from each JAL Group company, to clarify responsibilities,
share information promptly and implement measures.

FY2021

Bribery (Preventing corruption)

21
22 Disclosure
Basic concept

Basic concept■ Develop an environment for promoting
compliance

Item (Relevant Code of contact items in parentheses)

A specialized information security organization

Fair Business Practices (Compliance)

For details on corporate governance, please refer to page 25 onwards.

FY2021

Medium Term Management Plan

As an important infrastructure operator responsible for public
transportation, we implement measures against cyberattacks such asdata leaks and unauthorized access, in accordance with guidelines
established by the Ministry of Land, Infrastructure, Transport
and Tourism*3. In addition, we provided regular e-learning to all
employees (participation rate of over 90%) and monitor threats 24/7

Responsible Procurement

Information-sharing in information security andcollaboration with relevant authorities▶Management system

The Risk Management and Information Security Committee (p.99)
oversees the handling of personal data and management andpromotion of information security. We will enhance information security
against increasingly sophisticated and complex external attacks andmitigate business risks. Furthermore, under the Senior Vice Presidentof IT Planning, who is the CISO (Chief Information Security Officer),an organization dedicated to information security participates inTransportation ISAC*1 and AVIATION ISAC*2. Measures necessary tostrengthen information security are implemented.

Disclosure

The JAL Group Value Creation Story

In view of the importance of information security and personal dataprotection in a sophisticated information and telecommunications
society, we have established the JAL Group Fundamental Policy on
Information Security and are working to properly manage and protect
important information held by the company, such as personal data ofcustomers entrusted to use in the course of business, by disclosing on
our website, information on compliance with laws and internal rules,
our management system, safety measures, education, awarenessraising activities, cooperation with subcontractors, accident handlingmeasures and our help desk.

GovernanceCommunities

Foreword▶ Basic policy

PeopleInformationsharing

Sustainability initiatives

Coordination

Chapter 4 Sustainability

A video of financial results for employees presented by
the Senior Vice President of Finance and Accounting

TOP

JAL REPORT 2022 102

Chapter 4 Sustainability

Sustainability initiatives

Environment

PeopleRobust Risk Management (strengthening BCM)

Fair Business Practices (compliance)

Responsible Procurement

Responsible Procurement

Disclosure

Particularly relevant areas:

All areas

Basic concept

Use of certified products

Foreword

22
22

GovernanceCommunities

Priority and strategic measures■In order to remain a company trusted by society, the JAL Group respects its business partners, strives to develop
sound businesses and conduct responsible procurement.
■Recognizing that our daily aircraft operations and products and services are based on good partnerships withour business partners, we will maintain fair and impartial procurement, and build sustainable supply chains bycommunicating and complying with the JAL Group Supplier Code of Conduct.

Vegetables

Seafood

Strengthening cooperation with business partners

The prawns used in this menu are produced
under responsible aquaculture management
and certified by a third party according to
ASC (Aquaculture Stewardship Council)
standards, and received ASCʼs Group
Distribution Certification (CoC).
WEB

https://www.asc-aqua.org/(ASC-C-02732)

Priority and strategic measures
Compliance with JAL Group Supplier
Code of Conduct in FY2021 (percentage by field)■Identify primary suppliersASC：
Whiteleg
shrimp

100%
80%
60%

ASIAGAP：
Salad

40%
20%
0%

■Cooperate with business partners andrequest improvement*1 An NPO that provides a platform for managing and sharing ethical supply
chain data with the aim of achieving responsible business practices in the
supply chain. Established in the U.K. in 2004.
*2 Abbreviation for self-assessment questionnaire

Supplier assessment flow

■

■

■

■JAL Supplier Hotline
In FY2022, we opened in April the JAL Supplier Hotline toprovide consultation to business partners and their employees.
Going forward, we will periodically review the system toimprove its effectiveness.
In addition to quality, price, and delivery, we will continue
evaluations from the perspective of sustainability throughself-assessment questionnaires to promote responsible
procurement and ultimately achieve the SDGs.

Forestmanagement
certification:
Menu card

PeriodBy

Monitoring completion rate ofprimary suppliers

FY2019FY2023

FY2023

100%

62%Soundness confirmation rateof primary suppliers

FY2019FY2023

FY2023100%

62%

Auditing rate of suppliers
requiring audit

FY2019FY2023

Each year 100%

N/A

Consulation response rate

Each year

Each year 100%

FY2022~Training rate of procurement
staff

Each year

Each year 100%

100%

Target Achievement

Relaxation wear

Topic

GOTS is an international organic fiber standard for
producing products in environmentally and sociallyconscious ways, consisting of certified raw materials and theirtraceability, provisions for prohibitions and restrictions on the use ofchemicals, separation and identification, environmental management,
residue limits, social norms (development of working conditions andconditions, prohibition of child labor, and workers' rights).

Delicious sustainable coffee
Mi Cafeto’s mission is to create and maintain a market by supporting
producers who strive to make delicious coffee while protecting thenatural environment and human rights, and by directly importing coffee
at a price commensurate with its quality without going through a
middleman. Our company agrees with JAL's efforts and collaborates
to help solve social problems by serving delicious, sustainable coffee incabins and lounges.

Rainforest Alliance
Certification
Rainforestʼs newcertification logo laysout a vision for a path tosustainability based oncontinuous improvement,
transparency and shared
responsibility between
producers and companies
to achieve our mission ofbuilding a better future
for people and natureby making responsible
business the new normal.

TOP

JAL REPORT 2022 104

Data Section

KAWASHIMA José Yoshiaki
Coffee hunter
President, Mi Cafeto Co., Ltd.

103 JAL REPORT 2022

Forest Management Certification is a system in which an independent third party evaluatesand certifies forest management according to certain standards. It was established in Europe
and the U.S. in the 1990s to prevent forest degradation and depletion from global illegal
logging and to achieve sustainable forest management.

Global Organic Textile Standard (GOTS)
Certification

Key Performance Indicators (KPI)
Key Performance Indicators (KPI)

Forest Stewardship Council (FSC) Forest Management Certification

Sustainability

We disseminate the JAL Group Supplier Code of Conduct
widely to our business partners and ask them to comply with
it. For primary suppliers we check compliance status throughthe Sedex*1 SAQ*2 and a JAL questionnaire.
When we received replies that do not meet the standards
required by JAL, we communicated with the company andasked them to make improvements such as establishingenvironmental targets and developing a CSR promotion
system. Going forward, we will make it a requirement tomake improvements to meet the standards by a specified
deadline or submit an improvement plan in order to continuetransactions.

(Images include illustrations)

Medium Term Management Plan

Considering the amount and volume of procurement andthe importance and non-substitutability of products, wehave designated approximately 470 domestic and overseas
suppliers as primary suppliers and are working to check thesoundness of supply chains in the order of high risk products.

ASIAGAP is GFSI (Global Food Safety Initiative),a certification of farms committed to foodsafety and environmental preservation and is astandard for global farm management. There aremany standards for food safety, environmental
protection, occupational safety, human rights, andwelfare, including the management of pesticides
and fertilizers. JAL Agriport has also obtained thiscertification for its farms.

The JAL Group Value Creation Story■To achieve this, we will respond sincerely to our business partners and identify and solve problems from theperspectives of legal compliance, global environmental protection, respect for human rights, proper labor practices
and fair business practices.

Chapter 5 Data Section

Foreword

1. Data Highlights
ESG
CO2 emission reduction

Percentage of fuel-efficient aircraft

CO2 emissions from aircraft (1000 tons)

Revenue Passenger Kilometers / Available
Seat Kilometers(domestic flights)

Employees

Non-fuel-efficient aircraft (%)
Fuel-efficient aircraft (%)

Number of employees (people)

Revenue Passenger Kilometers / Available
Seat Kilometers*9(international flights)

On-time arrival rate

Available Seat Kilometers(1 million seat-km)
Revenue Passenger Kilometers(1 million passenger-km/km)

Available Seat Kilometers(1 million seat-km)
Revenue Passenger Kilometers(1 million passenger-km/km)

Passenger Load Factor(= Revenue Passenger Kilometers (RPK)/Available Seat Kilometers (ASK)) (%)

Passenger Load Factor(= Revenue Passenger Kilometers (RPK)/Available Seat Kilometers (ASK)) (%)

Domestic (%)
International (%)

Total (%)

96.38
100

9,085

33,03872

6,194

34,00335,42371.8

36,11635,71425,643

2017

2018

2019

2020

2021

(FY)

0

49.3

2017

2018

2019

51,83654,925

2020

2021

(FY)

2017

2018

2019

2020

2021

(FY)

2017

26,19525,44320182019

Japanese GAAP

41,905
26.5

18.4

9,282

12,0892020

2021

22,780
6,027

11,918
2,196
(FY)

2017

2018

2019

2020

2021

(FY)

2017

2018

2019

2020

2021

215.8

61.0

2020
IFRS

2021

(FY)

IFRS

Japanese GAAP

IFRS

92.81

96.27 95.33
92.99 91.78
86.83

84.12

24,535

19,452

84.18

87.46
83.29

84.73 85.79

54,32444,65942,01336,199

84.99

85.00

77.1

70.3
47.7

50

4,393

72.5

81.3

85

84

82

79

35,653

81.0

Finance*7
Ratio of female managers/Ratio of nonJapanese managers*1

Employment rate of people with disabilities
Employment rate of people with disabilities (%)

Average monthly overtime hours per monthand rate of paid leave usage ratio*3
Average monthly overtime hours worked per person (hours)
Annual paid leave usage ratio (%)
89.5%

86.0%

21.9%
19.5%
16.3%

16.8%

18.4%

19.9%
19.5%

2.69%

20.5%

2.69%

2.62%

2.67%

79.0%

71.5%

NPS (Net Promoter Score)

EBIT*8/Net profit/loss*9/EBIT margin*16*6

Operating profit (billion yen)
Net profit/loss (billion yen)
Operating profit margin (%)

Domestic (points)
International (points)

12.6%

74.5%

7.9

2018

2019

2020

2021

(FY)

2017

2018

2019

2020

2021 （FY）

2017

135.4

2019

2020

2021

(FY)

2.1

2.2

0
0

1.4

1.3

2017

2017

2018

53.4

2019

2021

238.6

251.2

48.0

7.1
2020

18.1%

300.2

88.8

150.8

7.4
7.6

20.2%
16.9%

285.4

8.0

2018

6.4%

176.1
100.6

8.2

2017

EBIT margin (%)

23.0

9.9

9.5

8.5

EBITDA (billion yen)
EBITDA margin (%)

20.6%
7.1%

174.5

Statutory employment ratesince March 1, 2021 (2.3%)

EBIT (billion yen)

11.8%

30.0

2.64%

EBITDA*10/EBITDA margin*11 *16

Medium Term Management Plan

Ratio of female managers (%)
Ratio of non-Japanese managers (%)

*2

2,866
286.6

398.3

(FY)

The JAL Group Value Creation Story

9,070

9,332

36,060

177.5
2,394
239.4

Initial result

2017

2018
2019
Japanese GAAP

2019

2020
IFRS

2021

2017

(FY)

2018
2019
Japanese GAAP

2019

(FY)

Business
Aircraft accident/Serious incident

Number of aircraft

Aircraft accident
Serious incident

Percentage of highly satisfied employees (%)

Large
Regional jets

Shareholders' equity ratio

MediumSmall

Shareholders’ equity (billion yen)
Shareholders' equity ratio (%)
Shareholder's equity ratio based on credit rating evaluation*12 (%)
57.4%

57.2%
55
56.8%

56.8%

54.4%

54.4%

51.7%

3

1

65

1

2019

2020

2021

(FY)

2017

1

1

1

0
2018

65

2

0
2018

52

51

2019

2020

2021

(FY)

62

61

1,165.1

1,094.8

1,014.2

59

71

77

83

80

76

40

40

44

45

44

2017

2018

2019

2020

2021

Net profit/loss (billion yen)
Total dividends (billion yen)
Repurchase amount (billion yen)
Dividend payout ratio (%)
Total return ratio (%)

39.3%
35.3%
41.1%
947.4

135.4

28.7%

33.7%
799.7

44.5%
25.5%

72.8%

150.8

80.9%

49.2%

20.0

20.0

38.7

38.3

29.4%

32.3%

2017

2018

35.3%

39.3%

53.4

48.0
20.0
18.8

20.0
18.8

286.6
(FY)

2017

2018
2019
Japanese GAAP

2019

2020
IFRS

2021

(FY)

2017

2018
Japanese GAAP

2019

2019

2020
IFRS

2021

(FY)

2019

2019

2020

177.5
2021 (FY)IFRSJapanese GAAP

*9 Profit/loss attributable to owners of parent*10[Japanese GAAP] EBITDA = Operating profit + Depreciation [IFRS] EBITDA = EBIT + Depreciation*11[Japanese GAAP] EBITDA Margin = EBITDA/ Operating Revenue [IFRS] EBITDA Margin = EBITDA/ Revenue*12 Shareholder's Equity Ratio based on credit rating evaluation considering Hybrid Finance*13 Payout Ratio = Total Dividends / Profit or Loss*9 *15*14 Total Return Ratio = (Total Dividends + Share Repurchases) / Profit or Loss*9 *15*15 Profit attributable to owners of parent for FY2017–2018 excludes the effects of income taxes deferred*16 EBIT Margin and EBITDA Margin for FY2020 and FY2021 are not shown as they are negative figures. Payout Ratio and Total Return Ratio for FY2020 and FY2021 are not shown as nodividend has been provided.

TOP

JAL REPORT 2022 106

Data Section*1 In Japan Airlines Co., Ltd. (Locally hired managers overseas + Non-Japanese managers hired in Japan in business planning and maintenance engineering jobs)/Total managers*2 Sum of Japan Airlines Co., Ltd. and JAL Sunlight Co., Ltd. a special subsidiary, as of June 1 of the following fiscal year
*3 Japan Airlines Co., Ltd. only
*4 The percentage of employees who chose 4 or 5 out of a 5-point scale in a biennial survey conducted in FY2017 and FY2019. FY2018 and FY2020 show results for the previous year
*5 Figures for Revenue Passengers Carried, Revenue Passenger Kilometers (RPK), Available Seat Kilometers (ASK) and Load Factor for international flights have been calculated since
FY2015 including the portion of JAL flights sold to other airlines by code-share.
*6 Compared to results in early FY2017*7 IFRS is adopted from FY2020. Accordingly, figures for FY2019 are also calculated under IFRS for comparison.
*8 EBIT = Profit or Loss before Financing and Income tax (Profit/Loss before Tax – Finance Income /Expenses)

105 JAL REPORT 2022

58.9%
45.0%

50

Total return ratio*14 *16

Dividend payout ratio (%)

51.2%

1,060.3

2

2017

53

Dividend payout ratio*13 *16

Sustainability

Percentage of highly satisfied employees*4

Chapter 5 Data Section

2. ESG Data

1. Data Highlights

3. Business Data

4. Financial Data

5. Other Data

ESG data is also available on the JAL website.
https://www.jal.com/en/sustainability/esg/pdf/esg.pdf

WEB

Environment (E)Environment (E)Unit

FY2017FY2018FY2019FY2020

FY2021Unit

GHG Scope 1
1,000 ton-CO2

9,083

9,345

9,121

4,421
4,405*1

6,214
6,196*1CO2 emissions from aircraft

1,000 ton-CO2

9,070

9,332

9,085

4,393

6,194

％

99.9

99.9

99.6

99.3

99.5

1,000 ton-CO2

13

13

15

14

14

CO2 emissions from vehicles

1000 ton

—

—

21

15

17

CO2 emissions per Revenue Ton Kilomter (RTK)

kg-CO2/RTK—

1.03231.06481.37631.27511,000 ton-CO2

54

50
39*3

57
39*3

51
34

53
35*3

GHG Scope 2*3

3

GHG Scope 3
Total emissions

1,000 ton-CO2

460.2

478.5

1,402.7(2,176.9)*4

1,046.2

1534.6

Category 1: Purchased goods and services

1,000 ton-CO2

—

—

215

166

198

Category 2: Capital goods

1,000 ton-CO2

—

—

721

264

481

450

468
465*3

455(1,227)*4
453*3(1,221)*4

603
596*3

842
835*3

Category 3: Fuel- and energy-related activities(not included in Scope 1 or Scope 2)

1,000 ton-CO2
1,000 ton-CO2

—

—

1.0

0.8

1.3

1,000 ton-CO2

4.3

4.4

4.6

4.7

4.6

Category 7: Employee commuting

1,000 ton-CO2

5.9

6.1

6.1 (8.3)*4

7.7

7.7

GHG Scope 1+2

1,000 ton-CO2

9,137.0

9,395.0

9,178.0

4,472.0

6,267.0

GHG Scope 1+2+3

1,000 ton-CO2

9,597.2

9,873.5

10,580.7

5,518.2

7,801.6

Basic fuel consumption unit
Specific Fuel Consumption for Passenger Transport

L/100PK

3.192

3.132

3.225

4.195

3.816

Specific Fuel Consumption for Cargo Transport

L/TKT

0.355

0.348

0.358

0.466

0.424

Kerosene

1,000 GJ

0.3

0.3

0.3

1.2

1.2

Heavy fuel oil A

1,000 GJ

8.6

2.5

2.0

2.7

2.2

Energy consumption (ground)*5

1,000 GJ

260

267

257

245

241

1,000 MWh

110

102

98

89

92

Steam, heat, cooling

1,000 GJ

332

340

332

317

337

Crude oil equivalentkl

43,512

41,71740,15335,43939,148Jet fuel

1,000 kl

3,678

3,784

3,684

1,781

2,507

Crude oil equivalent

1,000 kl

3,483

3,583

3,488

1,687

2,357

Energy consumption (fuel)1,000 MWh

37,57238,651

37,63018,22925,633

Energy consumption (steam, heat, cooling)

1,000 MWh

95

96

92

88

94

Energy consumption (total)

1,000 MWh—

38,84937,82018,40625,8191,000 ton-NOx

5.02

5.10

5.54

2.43

3.06

Energy consumption (aircraft)

Electricity equivalent

NOx emissions

FY2021

g/PKT

0.047

0.046

0.053

0.065

0.049

g/TKT

0.527

0.511

0.589

0.724

0.544

HC (hydrocarbon) emissions in LTO cycle*6

1,000 ton-HC

0.63

0.63

0.66

0.13

0.15

CO (carbon monoxide) emissions in LTO cycle*6

1,000 ton-CO

3.87

3.95

4.35

1.71

2.40

ton

24.5

26.3

27.7

23.7

24.3

kg

6.62

7.40

3.94

1.96

14.27

Other emissions

VOC emissions

Tap water consumption
Groundwater, Sea, River, Lake, Industrial water consumption
Total consumption
Industrial waste
Total waste generated
Total waste used/recycled/sold
Total waste disposed
PCB waste
Final disposal rate
Fuel-efficient aircraft
Airbus A350
Boeing 787
Boeing 777
Boeing 737-800
Embraer 170
Embraer 190
ATR42-600
ATR72-600
Number of fuel-efficient aircraft (Total)
Ratio of fuel-efficient aircraft
Low-noise aircraft
Ratio of ICAO Chapter compliant aicraft
Ratio of ICAO Chapter 14 compliant aicraft
VehiclesMotor vehicle
Gasoline consumption
Diesel consumption
Environmental investments
Investments (aircraft costs)
Environmental violations
Number of violations of legal obligations/regulations
Amount of fines/penalties related to above violations
Food loss & waste
Food loss & waste in JAL Royal Catering Narita and Haneda offices
Total weight of compost from food loss & waste above
Percentage of passengers boarding from Narita andHaneda of all international passengers
Wood/Paper/Fiber containers
Percentage of total weight of recycled and/or certified raw
materials
Metal (aluminum, steel, etc.) container
Percentage of total weight of recycled and/or certified raw
materials
Glass container
Percentage total weight of recycled and/or certified raw
materials
Plastic
Reduction rate of new petroleum-derived products in cabins
and lounges
Percentage of environmentally-friendly materials used insingle-use plastics for checked baggage at airports
Percentage of plastic containers and packaging that can be recycled(percentage of total weight of all plastic containers and packaging)
Percentage of recycled materials in plastic containers and packaging(percentage of total weight of all plastic containers and packaging)

0
435

485
276*3
0
485

447
220*3
0
447

335
203*3
0
335

316
190*3
0
316

ton
ton
ton
ton
％

3,266
3,233
33
3
1.0

3,912
3,873
39
0.07
1.0

3,330
3,320
10
0
0.3

2,834
2,817
17
0
0.6

3,998
3,985
13
0
0.3

aircraftaircraftaircraftaircraftaircraftaircraftaircraftaircraftaircraft
%

—
36
40
57
17
12
4
—
166
72

—
42
40
62
18
14
6
1
183
79

5
49
39
62
18
14
8
2
197
82

8
49
37
61
18
14
9
2
198
84

15
51
18
64
18
14
11
2
193
85

%
%

—
—

—
—

100
45

100
40

100
41

vehicle
kl
kl

—
—
—

—
—
—

3,609
691
7,430

3,604
495
5,125

3,537
539
5,964

billion yen

168.2

175.4

181.3

55.3

132.0

case
yen

0
0

0
0

0
0

0
0

0
0

ton
ton

137.2
0

151.4
0

153.5
11.8

22.5
6.3

34.3
11.7

%

46.0

45.4

47.4

47.4

45.0

%

—

—

—

99.5

99.7

%

—

—

—

97.9

97.9

%

—

—

—

75.3

75.3

%

—

—

2.5

10.4

25.0

%

—

—

—

87.6

90.0

%

11.5

11.4

11.8

11.6

14.9

%

0.0

0.0

0.0

0.0

0.7

1,000 m3

435

1,000 m3
1,000 m3

*1 Excludes in-flight catering facilities in Japan*2 In-flight catering facilities have been added to Head Office, Airport, Maintenance Center and Branch Offices from FY2019.
*3 10 hub airports of JAL Group in Japan*4 Basic unit from FY2020 is used in FY2019 ( ).
*5 Head Office, Airport, Maintenance Center, and Branch Offices*6 ICAO standard of counting take-off and landing as “one”

TOP

JAL REPORT 2022 108

Data Section

Specific NOx emissions from passenger transport
Specific NOx emissions from cargo transport

107 JAL REPORT 2022

FY2020

Sustainability

Town gas, LPG
Electricity

Total
CFC substitute (aircraft)
Total

FY2019Medium Term Management Plan

Category 5: Waste
Category 6: Business travel

NOx (nitrogen oxide) emissions in LTO cycle*6

FY2018The JAL Group Value Creation Story

Total emissions

CO2 emissions from ground equipment*2

FY2017

Water consumption
Withdrawal

Greenhouse gas emissions (GHG)

Ratio of GHG Scope 1 of CO2 emissions from aircraft

Foreword

2. ESG Data

Chapter 5 Data Section

2. ESG Data

1. Data Highlights

3. Business Data

4. Financial Data

5. Other Data

https://www.jal.com/en/sustainability/esg/pdf/esg.pdf

WEB

Social (S) Human Resources

*1

Unit

FY2017FY2018FY2019FY2020Unit

FY2021

Employees
Number of employees (consolidated)people33,03834,00335,65336,06035,42325,191people23,82824,29525,27825,244people

2,629

2,690

2,766

2,876

3,082

Number of cabin crew

people

6,581

7,018

7,609

7,940

7,150

Ratio of managers

%

15.8

15.5

14.8

15.0

15.9

Ratio of general staff

%

84.2

84.5

85.1

85.0

84.1

Ratio of male employees

%

51.6

50.2

49.4

48.3

49.9

Ratio of female employees

%

48.4

49.8

50.6

51.7

50.1

Ratio of female managers

%

16.3

16.8

18.4

19.5

21.9

%

—

—

19.9

19.5

20.5

Ratio of non-Japanese managers *2 *3
*3

200

218

216

218

226

%

88.4

89.8

88.4

84.0

90.1

Ratio of locally hired managers in overseas offices*3

%

58.4

64.0

56.3

53.0

57.4

people

20

14

50

6

0

%

2.69

2.69

2.62

2.67

2.64

2,340(7.1％)

2,422(7.1%)

3,711(10.4%)

2,352(6.5%)718(2.0%)

—

—

8.1

15.9

20.6

Number of mid-career employees hired (business planningstaff hired in Japan)*3
Ratio of employees with disabilities*4

Employment, turnover
Number of new employees (new employee hire rates)
Average cost of hiring full-time employees*3
Voluntary turnover rate*3

Total turnover rate (male)*3

Total turnover rate (female)*3

people (%)
ten thousand yen
%

2.6

2.0

1.9

1.1

1.6

%

—

—

—

—

2.2

%

—

—

—

—

1.5

Age
Average age
Average age of ground staff

year

38.6

39.1

39.4

38.6

39.4

year

38.9

39.5

40.2

39.1

40.0

Average age of cockpit crew

year

44.1

44.0

43.8

44.0

43.8

Average age of cabin crew

year

35.6

35.4

35.0

35.0

35.8

year

14.5

14.7

14.4

14.4

14.8

year

—

—

—

21.4

21.4

year

—

—

—

10.5

11.7

Years worked
Average years worked
Average years worked (male)*3

Average years worked (female)*3
Training hours per person

hour

64.7

70.8

72.3

277.1

162.3

Training cost per person*5

yen

422,187

470,698

449,480

109,32184,469Cockpit crew

people

2,448

2,447

2,519

2,620

2,632

Maintenance engineer

people

1,809

1,827

1,859

1,856

1,867

Qualifications

Annual remuneration
Average annual remuneration (all employees)

1,000 yen

7,021

7,126

6,684

5,638

5,521

(Male) manager*3

1,000 yen

—

—

—

7,742

7,173

(Female) manager*3

1,000 yen

—

—

—

7,671

6,975

1,000 yen

—

—

—

5,293

5,081

1,000 yen

—

—

—

4,472

4,221

(Male) general staff*3(Female) General Service*3

FY2019FY2020

FY2021%hourcasepeople%people%people
hour

89.5
7.9
69
843
—
89
56.8
6,826
59,551

86.0
8.5
54
789
79.9
68
56.8
8,140
68,288

79.0
9.5
28
743
81.8
53
54.4
7,745
51,734

71.5
8.0
13
946
106.3
40
54.4
9,772
33,600

74.5
9.9
11
934
99.3
20
51.7
6,125
27,952

%
%
%
%
%
%
%

―
68.8
―
90.4
30.4
6.0
26.0

―
68.8
―
91.6
28.9
5.5
25.4

―
68.3
―
94.4
27.9
5.0
43.4

―
67.1
―
96.1
26.3
4.2
60.4

19.1
―
8.7
―
25.9
4.2
58.9

Communities
Unit

Domestic passenger traffic
Domestic cargo traffic
Number of overseas carriers' flights handled out of total
passenger and cargo flights*9
Collaboration
Number of schools partnership*3
Number of cities partnership*10

FY2017FY2018FY2019FY2020

FY2021% (vs. FY2019)% (vs. FY2019)

—
—

—
—

—
—

▼74.2
▼30.0

▼59.0
▼34.0

flight—88,00087,0009,000

17,000school
city

12
11

20
18

25
20

30
25

32
41

Governance (G)Unit

Corporate governanceCompliance rate of Corporate Governance Code
Number of Directors on the Board*3
Ratio of Outside Directors*3
Number of female Directors*3
Number of female officers (Director, Executive Officer)*3
Ratio of female officers (Director, Executive Officer)*3
Board meeting attendance rate of Outside Directors and Auditors*3
Risk management
Number of data breaches
Number of corruption and bribery cases
Secondary usage ratio of personal data
Number of substantiated complaints received from outside
parties regarding privacy protection
Number of whistleblowing cases

FY2017FY2018FY2019FY2020

FY2021%people%peoplepeople
%
%

—
10
30
1
4
—
—

—
10
30
1
4
—
—

100
10
30
1
5
—
98.3

100
10
30
1
5
13.2
100

100
9
33
1
5
13.9
100

case
case
%

0
0
0.0

0
0
0.0

0
0
0.0

2
0
0.0

0
0
0.0

case

0

0

0

0

0

56

96

84

71

110

*1 Japan Airlines Co., Ltd. and 59 consolidated subsidiaries*2 (Locally hired managers overseas + Non-Japanese managers hired in Japan in business planning and maintenance engineering positions/Total managers*3 Japan Airlines Co., Ltd. only
*4 Sum of Japan Airlines Co., Ltd. and JAL Sunlight Co., Ltd. a special subsidiary, as of June 1 of the following fiscal year
*5 Subject to external training*6 Total number of childcare leave applicants/Number of male employees with newborn baby
*7 The percentage of employees who chose 4 or 5 out of a 5-point scale in a biennial survey conducted in FY2017 and FY2019. FY2018 and FY2020 show results for the previous year
*8 Calculation based on data of Japan Airlines Health Insurance Association*9 Result of airport contracted services (passenger and ramp handling)*10 Some include partnership agreements with councils rather than municipalities.

TOP

JAL REPORT 2022 110

Data Section

109 JAL REPORT 2022

FY2018Sustainability

Training

Social (S)FY2017

Medium Term Management PlanpeopleRatio of locally hired staff in overseas offices*3

WorkstylePaid leave usage ratio*3
Average monthly overtime hours worked per person*3
Industrial accidents*3
Childcare leave applicants*3
Paternal leave usage ratio*6
Nursing care leave applicants*3
Percentage of highly satisfied employees*7
Participants in voluntary activities
Total hours of voluntary activities
Wellness*8
Obesity ratio (BMI 25 or higher)
Appropriate weight maintenance ratio
Percentage of people with high stressStress check ratio
Smoking ratio (male)
Smoking ratio (female)
Breast cancer check-up ratio(female employees age 18 and above)

The JAL Group Value Creation Story

Number of ground staff
Number of cockpit crew

Number of managers hired overseas

Foreword

ESG data is also available on the JAL website.

Chapter 5 Data Section

1. Data Highlights

3. Business Data

2. ESG Data

4. Financial Data

5. Other Data

Foreword

3. Business Data
SafetyTraffic Data
Unit

FY2017FY20180

FY20191

FY2020Aircraft accident

case

1

Serious incident

case

1

2

3

Irregular operations*1

case

51

48

34

FY2021

2

Domestic flights

1

1

Total passengers

42

47

0

Safety event*2
case

14

19

9

6

6

Parts Departing from Aircraft

case

2

4

4

1

1

Revenue Passenger Kilometers

FY2020FY2019FY2020

FY2021people34,033,475

34,859,576

33,783,710

12,212,131

16,238,833

1,000 passenger-km

25,643,092

26,195,658

25,443,520

9,282,122

12,089,054

1,000 seat-km

35,714,021

36,116,930

36,199,539

19,452,985

24,535,597

71.8

72.5

70.3

47.7

49.3

people8,585,399

9,128,236

8,277,987

357,519

892,471

1,000 passenger-km

42,013,111

44,659,463

41,905,628

2,196,423

6,027,871

1,000 seat-km

51,836,491

54,925,904

54,324,546

11,918,047

22,780,657

81.0

81.3

77.1

18.4

26.5

％

*1 *3

％

Passenger Load Factor*3

Cargo and Mail

Aircraft
FY2019FY2018Passenger Load Factor

Available Seat Kilometers*2 *3https://www.jal.com/en/flight/report/

FY2018FY2017

Total passengers*3

For more safety data, please visit the JAL website for our Safety Report.

FY2017Available Seat Kilometers

*2

Unit

International flights (Full Service Carrier (FSC))*1 A situation in which partial malfunction of multiple aircraft systems occur, for example, and the pilots respond according to the manual and return to the airport to ensure safety,
resulting in a schedule change including the destination (excluding bird strike, lightning strike, etc.). In general, it is not a situation that immediately affects safety of operations.
*2 Article 111-4 of the Civil Aeronautics Act and Article 221-2-3 and 4 of the Ordinance for Enforcement of the Civil Aeronautics Act mandate reporting to the MLIT, and the following
situations are applicable. Accidents specified in each item of Article 76 (1) of the Civil Aeronautics Act and situations (serious incident) in Article 76 (2) of the Act do not fall under thiscategory. Generally speaking, they do not immediately lead to an aircraft accident.

Unit

Revenue Passenger Kilometers*1

IFRS*5

Domestic revenue cargo ton-km

1,000 ton-km

364,089

343,529

328,182

237,874

231,515International revenue cargo ton-km

1,000 ton-km

2,233,387

2,429,268

2,407,691

1,948,205

3,113,671

FY2017FY2018FY2019FY2020

FY2021

FY2021

aircraft

0

0

5

8

15

Boeing 777-300ER

aircraft

13

13

13

13

13

Boeing 777-300

aircraft

4

4

4

4

4

Boeing 777-200ER

aircraft

11

11

11

11

8

Boeing 777-200

aircraft

12

12

11

9

4

Boeing 787-9

aircraft

11

17

20

20

22

Boeing 787-8

aircraft

25

25

29

29

29

Boeing 767-300ER

aircraft

29

29

29

29

29

Boeing 767-300

aircraft

6

6

5

2

0

Boeing 737-800

aircraft

57

62

62

61

65

Boeing 737-400

aircraft

8

3

0

0

0

Embraer 170/Embraer 190

aircraft

29

32

32

32

32

ATR42-600/ATR72-600

aircraft

4

7

10

11

13

De Havilland DHC-8-400CC

aircraft

5

5

5

5

5

De Havilland DHC-8-400

aircraft

6

1

0

0

0

De Havilland DHC-8-300

aircraft

1

0

0

0

0

SAAB340B

aircraft

10

8

5

3

0

Unit

NPS (Net Promoter Score)*4

Domestic flights

point

+1.4

+1.3

+7.6

+23.0

+7.1

International flights

point

+2.1

+2.2

+8.2

+30.0

+7.4

*1 Revenue Passenger Kilometers: The total distance flown by revenue paying passengers. Number of revenue passengers x distance flown (kilometers)*2 Available Seat Kilometers: Measures passenger carrying capacity. Total seats x Distance flown (kilometers).
*3 Since FY2015, calculation of figures for Revenue Passengers Carried, Revenue Passenger Kilometers, Available Seat Kilometers, and Load Factor for international flights include
codesharing of JAL-operated flights sold by other airlines.
*4 Compared to results in early FY2017*5 International Financial Reporting Standards (IFRS) have been applied since FY2020.

Collaboration with External Parties
Unit

FY2017FY2018FY2019FY2020

FY2021

Number of partner airlines
Domestic flights*

Company

3

3

3

3

3

International flights

Company

26

30

36

35

35

Number of Lab Alliances

Company

—

7

11

12

12

Sustainability

Flight Data

Customer Satisfaction* Partnership with Jetstar Japan on international connection routes only

FY2017FY2018FY2019FY2020

FY2021Results of Major Subsidiaries*

Number of cities served
Domestic flights

destination

59

60

62

61

61

International flights

destination

284

348

378

368

380

Number of flights

Unit

FY2017FY2018FY2019FY2020

FY2021

JALPAK Co., Ltd.
Operating revenue

billion yen

1,751

1,820

1,696

—

—

Domestic flights

flight235,246

244,467

242,603134,325

224,022

Sales revenue

billion yen

—

—

1,701

555

458

International flights

flight53,29554,747

51,1298,138

17,127

Total

flight288,541

299,214

293,732

142,463

241,149

JAL CARD, INC.
Operating revenue

billion yen

183

194

201

—

—

Sales revenue

billion yen

—

—

196

186

185

Percentage of flights operated
Domestic flights

%

98.38

98.12

98.12

97.12

98.06

International flights

%

99.88

99.54

99.36

99.04

99.24

On-time departure rate
%

84.72

88.33

86.71

96.74

94.15

%

87.80

87.47

86.35

93.17

88.98

Total

%

88.61

88.10

86.62

96.02

93.38

* Each figure is for before elimination of consolidated transactions. In addition, the Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29,
issued on March 31, 2020) and the Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30, issued on March 31, 2020) since FY2020. Accordingly, sales
revenue figures for FY2019 are the figures after retroactive application of the accounting standard.

Data Section

Domestic flights
International flights
On-time arrival rate
Domestic flights

%

84.73

84.12

83.29

96.27

92.99

International flights

%

85.79

87.46

86.83

95.33

91.78

Total

%

85.00

84.99

84.18

96.38

92.81

111 JAL REPORT 2022

Medium Term Management Plan

Airbus A350-900

Unit

The JAL Group Value Creation Story

System problem (engine)

WEB

Japanese GAAPTOPJAL REPORT 2022 112

Chapter 5 Data Section

1. Data Highlights

3. Business Data

2. ESG Data

4. Financial Data

5. Other Data

Foreword

International Route Map（as of May 31, 2022）

Wenatchee
Kelowna
Bellingham

Prince George
Terrace
Terrace
Ketchikan
Ketchikan
JuneauJuneauFairbanks
Fairbanks

Tallinn
St. Petersburg

Walla Walla
Edmonton
Calgary
SpokanePullmanKalispell
Missoula

Anchorage

BerlinHannoverPragueBudapest
ViennaFrankfurt
MunichTenerife
Gran Canaria
SevillaMalagaZurichMilan
Nice
GenevaMarseille
Majorca
Barcelona
Toulouse
BilbaoDoha

VeniceNaplesRome
Bologna

Addis Ababa
Nairobi

DenverWinnipeg

Shenyang

Ulan Bator

Kazan

Nay Pyi Taw

DalianXi'an

Mandalay

Japan
Busan

Boise

Pasco
Pasco
PortlandRedmond
Redmond
EugeneReno
Sacramento
Santa Rosa
San Francisco

MedfordShanghai

Guangzhou
Shenzhen

Yogyakarta
Yogyakarta
Surabaya
Kuching
Denpasar
Sibu
Bintulu
Miri
LabuanPalm
Springs San Jose
Palm
Springs
FresnoBurbank
Burbank
Los Angeles
Ontario
Ontario

Taipei

Hanoi
Kaohsiung
Hong Kong
Guam
ManilaLuang Prabang
Trat
Phnom Penh
Ho Chi Minh City
Kota Kinabalu
Samui
Krabi
Kuantan

Lihue
Honolulu
Kahului

Da Nang
Siem Reap

Kona
Kona
Hilo

Tawau

Nadi
Sandakan

CairnsNoumeaBrisbaneGold Coast

Perth

SydneyMelbourne

BostonSeattleAucklandLas Vegas
DallasSanta Ana
San Diego
Phoenix
TucsonHermosillo
Albuquerque
AlbuquerqueCiudad Obregon
Los Mochis
El PasoCiudad Juarez
ChihuahuaPaz
LaLaPaz
Culiacan
San Jose del Cabo
North
North
West
West
Arkansas
Arkansas
DurangoLittle RockMonterrey
PuertoPuertoVallarta
Vallarta
Guadalajara
Manzanillo
Aguascalientes
PapeeteNuevo Laredo
Leon
Reynosa
San Luis Potosi
Queretaro
Ixtapa Zihuatanejo
TampicoMexico City
Acapulco
Veracruz
Oaxaca113 JAL REPORT 2022

Miami
Fort Lauderdale
West Palm Beach
Fort MyersSan Juan

Fortaleza
Tampa
CancunPensacola
MeridaNew OrleansFrankfurt
Salvador

RecifeLondonBrasilia
ManausBelo Horizonte

CampecheCiudad del Carmen
San Antonio

IguazuAustinHoustonLima
Campo GrandeTapachulaSantiago

Villahermosa
Tuxtla Gutierrez
Port Alegre
Curitiba
Sao Paulo
Rio De JaneiroTOP

Data Section● The above route map includes codeshare ﬂights.
● The above map is not geographically correct. This is for the purpose ofplacing JALʼs online cities in the center.
● Dashed lines (----) indicate a one-way route.

OrlandoSustainability

Cape Town

Victoria

Tianjin

Jakarta
Johannesburg

RochesterMontreal
Burlington
Syracuse
Columbus
Pittsburgh
Manchester
NewarkHartford
New York
Philadelphia
Harrisburg
Baltimore
DaytonWashington
Richmond
Indianapolis
Cincinnati
Norfolk
Lexington
Evansville
Raleigh Durham
Greensboro
Louisville
Knoxville
Charlotte
Greenville
ColumbiaCharleston
Nashville
Atlanta
Savannah
St. Louis
HuntsvilleJacksonville
Birmingham
MemphisPortlandVancouverBeijing

Chongqing

Guwahati
BagdograChengduVaranasi
Leh
Srinagar
Chandigarh
Amritsar
Delhi
Dubai
Lucknow
Ranchi
Kolkata
Ahmadabad
RaipurBhubaneswar
Mumbai
YangonPune
Hyderabad
Chennai
Goa
BangkokBangalore
Kochi
PhuketColomboMale
Langkawi
Mahe
Alor Setar
PenangKuala Terengganu
Kuala Lumpur
Johor Bahru
Singapore

Vladivostok
Seoul
YakimaKota Bharu

AnkaraAthensToledoDetroitTorontoCleveland
OttawaBuffalo

Yekaterinburg
Lampang
Sukhothai
Chiang Mai

Krasnodar
Sochi
Bucharest
Baku
Istanbul

Dubrovnik
Amman

Split

Ufa

Rostov

Stuttgart
ZagrebTel Aviv

Sao Paulo

SamaraKrakow

Great Falls
BozemanMedium Term Management Plan

London
Paris
Basel
Lyon
La Coruna
Santiago deCompostela
Vigo
OviedoPorto
LisbonMadridPerm

Tulsa
MadisonMilwaukee
ChicagoPeoriaBloomington
Grand Rapids
KalamazooSalt Lake City

Nizhny Novgorod
Warsaw

Des Moines
Kansas City
JoplinOklahoma City
Omaha
Minneapolis
Wichita

The JAL Group Value Creation Story

Stockholm
Hamburg
Kittila Ivalo
Reykjavik
Newcastle
Copenhagen
BillundDublinDusseldorf
Gothenburg
Manchester
Luxembourg
BelfastOslo
Rovaniemi
Amsterdam
Oulu
Glasgow Brussels
Moscow
Edinburgh
Helsinki
Riga
Aberdeen
Vilnius

JAL REPORT 2022 114

Section
Chapter 5 Data
国内線ルートマップ
2022年4月22日現在

1. Data Highlights

3. Business Data

2. ESG Data

4. Financial Data

5. Other Data

Consolidated Subsidiaries(as of April 22, 2022)（as of March 31, 2022）

Corporate Name

Rishiri

Paid-in Capital(Millions of yen)

Foreword

Domestic Route Map

Ratio of Voting Rights
Direct (%)

Indirect (%)

Total (%)

Sapporo(Okadama)

Obihiro(Tokachi Obihiro)

Sapporo(New Chitose)

4,537

72.8

—

72.8

300

60.0

—

60.0

Kushiro(Tancho Kushiro)

J-AIR CO., LTD.

100

100.0

—

100.0

HOKKAIDO AIR SYSTEM CO., LTD.

490

57.3

—

57.3

RYUKYU AIR COMMUTER CO., LTD.

396

—

74.5

74.5

ZIPAIR Tokyo Inc.

100

100.0

—

100.0

Misawa(Hachinohe・Towada)

SPRING JAPAN CO., LTD.

100

66.7

—

66.7

Tajima(Kounotori Tajima)

Izumo(Izumo Enmusubi)

Okayama(Okayama Momotaro)
Yamaguchi Ube
Kitakyushu(Kokura)Oita

Fukuoka

Nagasaki

Hiroshima
Takamatsu
Matsuyama

Nagoya(Komaki)Osaka(Itami)

Osaka(Kobe)

Osaka(Kansai)

Nagoya(Chubu)Tokyo(Haneda)Tokyo(Narita)

Tokushima(Tokushima Awaodori)

Kochi(Kochi Ryoma)

Nanki Shirahama

Kumamoto(Aso Kumamoto)Amakusa

Kagoshima

Amami-Oshima
Kikaijima

Tokunoshima(Tokunoshima Kodakara)
Okinoerabu(Erabuyurinoshima)

Kumejima

16.7

83.3

100.0

—

100.0

100.0

—

100.0

100.0

—

100.0

100.0

—

100.0

100.0

—

100.0

100.0

—

49.0

49.0

100

51.0

—

51.0

2,558

21.6

38.7

60.3

JAL INFORMATION TECHNOLOGY CO., LTD.

702

100.0

—

100.0

JAL DIGITAL EXPERIENCE CO., LTD.

475

51.0

—

51.0

JAL PAYMENT PORT CO., LTD.

390

16.5

68.5

84.9

JAL CARD, INC.

360

50.6

—

50.6

JAL-DFS CO., LTD.

300

—

60.0

60.0

JAL FACILITIES CO., LTD.

180

85.0

6.0

91.0

AXESS INTERNATIONAL
NETWORK, INC.

100

100.0

—

100.0

SJ Future Holdings Corporation

100

50.5

—

50.5

JALPAK INTERNATIONAL HAWAII, INC.
JALPAK INTERNATIONAL (EUROPE) B.V.

JAL SKY AIRPORT OKINAWA COMPANY., LTD.

33

66.7

33.3

100.0

JAL SATELLITE TRAVEL CO., LTD.

JALSKY OSAKA CO., LTD.

30

100.0

—

100.0

JALSKY KYUSHU CO., LTD.

30

100.0

—

100.0

JALSKY SAPPORO CO., LTD.

30

100.0

—

100.0

JALSKY KANAZAWA CO., LTD.

10

100.0

—

100.0

JALSKY SENDAI CO., LTD.

10

100.0

—

100.0

PT. TAURINA TRAVEL DJAYA*JAL GROUND SERVICE CO., LTD.

100

99.8

0.2

100.0

JAL GROUND SERVICE OSAKA CO., LTD.

10

—

100.0

100.0

JAL GROUND SERVICE KYUSHU CO., LTD.

10

—

100.0

100.0

JAL GROUND SERVICE SAPPORO CO., LTD.

10

—

97.7

97.7

JAL ENGINEERING CO., LTD.

80

100.0

—

100.0

JAL MAINTENANCE SERVICE CO., LTD.

10

100.0

—

100.0

USD 1,000
1,000
EUR 1,000
1,600
EUR 1,000
160
GBP 1,000
100
HKD 1,000
750
IDR 1,000
500,000

Airport-Related Business
JAL ABC, INC.

OthersJALUX INC.

JAL KANSAI AIRCARGOSYSTEM CO., LTD.

100

69.2

—

69.2

JAL AGRIPORT CO., LTD*

100

49.0

—

49.0

JAL CARGO SERVICE CO., LTD.

50

100.0

—

100.0

JAL HONGYUAN CO., LTD.

100

51.0

—

51.0

JAL CARGO HANDLING CO., LTD.

50

—

100.0

100.0

JAL BUSINESS AVIATION CO., LTD.

100

51.0

—

51.0

JAL CARGO SERVICE KYUSHU CO., LTD.

20

40.0

40.0

80.0

JAL BRAND COMMUNICATIONS CO., LTD.

100

100.0

—

100.0

JTA INFORMATION & COMMUNICATION CO., LTD.

50

—

100.0

100.0

100

100.0

—

100.0

JAL SBI FINTECH CO., LTD.

45

51.0

—

51.0

JAL NAVIA CO., LTD.

50

100.0

—

100.0

JAL SUNLIGHT CO., LTD.

20

100.0

—

100.0

JALUX AIRPORT INC.

15

—

100.0

100.0

100.0

OFFICIAL FILING CO., LTD.

10

50.0

40.0

90.0

10

—

100.0

100.0

USD 1,000
2,000

100.0

—

100.0

JAL MILEAGE BANK CO., LTD.

40

100.0

—

JPRO CO., LTD.

Airport-Related Business
JAL ROYAL CATERING CO., LTD.

2,700

51.0

—

51.0

JLC INSURANCE COMPANY LIMITED* Although JAL’s ownership is 50% or less, it is considered a subsidiary because JAL
has substantial control.

* Some flights between Osaka (Itami) and Kumamoto are also codeshare flights with AMX.

115 JAL REPORT 2022TOP

JAL REPORT 2022 116

Data Section

JAL SALES CO., LTD.

MILEAGE●Osaka (Kobe)-Aomori, Osaka (Kobe)-Hanamaki, Osaka (Kobe)-Matsumoto, Osaka (Kobe)-Kochi,
Sapporo (New Chitose)-Yamagata, Sapporo (New Chitose)-Matsumoto, Sapporo (Okadama)-Matsumoto,
Sapporo (Okadama)-Shizuoka, Yamagata-Nagoya (Komaki), Sendai-Izumo, Niigata-Fukuoka,
Shizuoka-Izumo, Shizuoka-Fukuoka, Shizuoka-Kagoshima, Nagoya (Komaki)-Izumo, Nagoya (Komaki)-Kochi,
Nagoya (Komaki)-Fukuoka, Nagoya (Komaki)-Kumamoto sectors are codeshare flights with Fuji Dream
Airlines (FDA). They are operated by FDA aircraft and crew.
●Fukuoka-Amakusa, Kumamoto-Amakusa sectors are codeshare flights with Amakusa Airlines (AMX). They
are operated by AMZ aircraft and crew.

30

EURO-CREATIVE TOURS (U.K.) LTD.

MiyakoIshigaki(Painushima Ishigaki)

97.8

100.0

Minami-Daito* Services are not available on select routes during certain periods of the year.

TaramaYonaguni

Kita-Daito
Okinawa(Naha)

1.1—

Passenger Sales

Yoron

96.7

JALPAK CO., LTD.

100.0

Cargo

Yakushima

80

Passenger Sales

Sustainability

Tanegashima(Cosmoport Tanegashima)

51.0

100

MaintenanceMiyazaki(Miyazaki Bougainvillea)

4.6

JAL SKY CO., LTD.

Ground Handling
Shizuoka(Mt.Fuji Shizuoka)

46.4

JUPITER GLOBAL, LTD.

Medium Term Management Plan

Komatsu(Kanazawa・Fukui)MatsumotoShinshu Matsumoto)

Oki(Oki Island Global Geopark)

HKD1,000
1,960

Cargo

JALPAK INTERNATIONAL (FRANCE) S.A.S.

Airport Passenger Handling

Niigata

70.0

JAL JTA SALES CO., LTD.

AomoriSendai

3.4

JAL AIRTECH CO., LTD.

JAPAN TRANSOCEAN AIR CO., LTD.

Yamagata(Oishii Yamagata)

66.6

Other Segments

JAPAN AIR COMMUTER CO., LTD.

Hanamaki(Iwate Hanamaki)

100

Air Transport Business

Low Cost Carrier

Akita

Total (%)

Other Segments

Memanbetsu(Abashiri・Bihoro・Kitami)

Hakodate

Okushiri

Indirect (%)

The JAL Group Value Creation Story

Asahikawa(Center of Hokkaido)

Direct (%)

Air Transport Business Segment

Full service carrier

Ratio of Voting Rights

Paid-in Capital(Millions of yen)

Corporate NameChapter 5 Data Section

1. Data Highlights

2. ESG Data

4. Financial Data

3. Business Data

5. Other Data

Foreword

4. Financial Data
Japanese GAAPFY2013

FY2014FY2015FY2016FY2017FY2018(Billions of yen)
FY20191,344.7
1,165.0
179.6
175.2
149.0
261.1
▼ 199.2▼ 67.3
61.8
85.8
265.5
292.7
198.6

1,336.6
1,127.4
209.1
209.2
174.4
312.3
▼ 207.2▼ 49.6
105.1
88.5
297.7
321.1
210.6

1,288.9
1,118.6
170.3
165.0
164.1
253.1
▼ 215.5▼ 53.5
37.5
95.7
266.1
286.2
233.1

1,383.2
1,208.6
174.5
163.1
135.4
281.5
▼ 180.1▼ 55.8
101.3
110.8
285.4
305.4
208.0

1,487.2
1,311.1
176.1
165.3
150.8
296.7
▼ 186.3▼ 37.0
110.3
124.1
300.2
320.1
222.1

1,411.2
1,310.5
100.6
102.5
53.4
60.0
▼ 221.5▼ 30.1▼ 161.5
138.0
238.6
260.2
239.6

As of fiscal year-end
Total assets
Net assets
Interest-bearing debt
Shareholders’ equity

1,340.1
711.0
134.2
690.2

1,473.3
800.7
100.5
776.4

1,578.9
870.5
92.6
843.0

1,728.7
1,003.3
116.0
972.0

1,853.9
1,094.1
125.7
1,060.3

2,030.3
1,200.1
142.3
1,165.1

1,859.3
1,131.8
191.7
1,094.8

89,411
181,352,000

94,289362,704,000

105,163362,704,000

127,583
353,715,800

123,474
353,715,800

144,308
349,028,700

236,234
337,143,500

458.45
1,903.53
80.00
362,639411.06
2,142.00
104.00362,584481.292,325.79
120.00362,500

456.56
2,749.71
94.00
359,594383.233,019.52
110.00353,334

432.103,340.15
110.00349,006

155.66
3,249.27
55.00
343,101

12.7
26.5
13.0
51.5
0.2x
19.1
21.5
8.6
12.2
17.5

13.4
20.3
12.8
52.7
0.1x
19.8
21.8
8.7
12.3
25.3

15.7
21.5
13.7
53.4
0.1x
22.3
24.0
9.1
11.7
24.9

13.2
18.1
10.3
56.2
0.1x
20.6
22.2
9.4
11.7
20.6

12.6
13.3
9.7
57.2
0.1x
20.6
22.1
10.1
12.5
28.7

11.8
13.6
9.1
57.4
0.1x
20.2
21.5
10.4
13.1
25.5

7.1
4.7
5.2
58.9
0.2x
16.9
18.4
10.6
13.2
35.3

Stock
Number of shareholders
Outstanding Shares Issued
Per share data (yen, U.S. dollars)*6
Profit attributable to owners of parent
Net assets
Dividends
Average number of shares during the fiscal year (thousands of shares)
Key Performance Indices
Operating margin (%)
ROE (%)ROA (%)
Shareholders' equity ratio (%)
D/E ratio (Times)
EBITDA margin(%)*8
EBITDAR margin(%)*9
Unit cost (yen)*10
Unit cost (yen) (Including fuel cost)
Dividend payout ratio (%)

Years ended March 31
Revenue
Operating Expense
EBIT
Profit before tax
Profit attributable to owners of parent
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Free cash flow*3
Depreciation and amortization
EBITDA*4
Capital investment (Purchase of non-current assets)
As of fiscal year-end
Total assets
Total equity
Interest-bearing debt
Shareholders' equity
Stock
Number of shareholders
Outstanding Shares Issued
Per share data (yen, U.S. dollars)Profit attributable to owners of parent
Shareholders' equity ratio
Dividends
Average number of shares during the fiscal year (thousands of shares)
Key Performance Indices
EBIT margin (%)
ROE (%)ROA (%)ROIC (%)
Shareholders' equity ratio (%)
Shareholders' equity ratio based on credit rating*7
D/E ratio (Times)
EBITDA margin*8
Dividend payout ratio (%)

FY2020(Billions of yen) Thousands of U.S. dollars*2
FY2021
FY2021481.2
885.0▼ 398.3▼ 404.0▼ 286.6▼ 219.5▼ 91.0388.6▼ 310.5
182.4▼ 215.8

682.7
940.2
▼ 239.4▼ 246.6▼ 177.5▼ 103.5▼ 173.7
359.2▼ 277.3
178.4▼ 61.05,578,176
7,682,212▼ 1,956,842▼ 2,015,009▼ 1,450,698▼ 846,025▼ 1,419,797
2,935,533▼ 2,265,822
1,458,370▼ 498,472

239.6

89.6

161.3

1,317,967

1,982.2
1,049.6
277.4
1,014.2

2,107.2
981.5
515.1
947.4

2,371.6
844.1
928.4
799.7

19,377,874
6,897,140
7,586,100
6,534,324

236,234
337,143,500

389,848
437,143,500

481,161
437,143,500

481,161
437,143,500

140.04
3,009.71
55.00
343,167▼ 764.99
2,168.06
0.00
374,766▼ 406.29
1,830.03
0.00
437,007▼ 3.31
14.95
0.00
─

6.4
4.6
4.3
4.7
51.2
─
0.3x
18.1

─
─
─
─
45.0
─
0.5x
─

─
─
─
─
33.7
41.1
1.2x
─

─
─
─
─
─
─
─
─

39.3

─

─

─

486.2
53,91045,551
8,958
84.5
10.7
9.0

27.9
11,918
2,196
357
18.4
12.7
2.3

68.7
22,780
6,027
892
26.5
11.4
3.0

562,014
─
─
─
─
─
─

437.5
46,23535,390
7,723
76.5
12.4
9.5

454.8
47,696
36,109
7,793
75.7
12.6
9.5

448.7
50,56340,305
8,460
79.7
11.1
8.9

415.2
50,621
40,633
8,394
80.3
10.2
8.2

462.9
51,83642,013
8,585
81.0
11.0
8.9

530.6
54,92544,659
9,128
81.3
11.9
9.7

476.2
54,324
41,905
8,277
77.1
11.4
8.8

Business Data(Full Service Carrier)International passenger operations *14
Passenger revenues
ASK (million seat kms)*11 *13
RPK (million passenger kms)*12 *13
Revenue passengers carried (1,000)*13
Revenue passenger load factor (%)*13
Yield (yen)*13
Unit revenue (yen)*13

Domestic passenger operations
Passenger revenues
ASK (million seat kms)*11
RPK (million passenger kms)*12
Revenue passengers carried (1,000)
Revenue passenger load factor (%)
Yield (yen)Unit revenue (yen)487.4
37,08423,74531,218
64.0
20.5
13.1

487.5
36,30623,99331,644
66.1
20.3
13.4

501.2
35,86924,341
32,114
67.9
20.6
14.0

498.6
35,42324,55032,570
69.3
20.3
14.1

518.2
35,71425,64334,033
71.8
20.2
14.5

528.0
36,11626,19534,859
72.5
20.2
14.6

514.6
36,19925,44333,783
70.3
20.2
14.2

Domestic passenger operations
Passenger revenues
ASK (million seat kms)*11
RPK (million passenger kms)*12
Revenue passengers carried (1,000)
Revenue passenger load factor (%)
Yield (yen)Unit revenue (yen)529.7
36,19927,49636,411
76.0
19.3
14.6

174.0
19,452
9,282
12,212
47.7
18.7
8.9

235.1
24,53512,08916,238
49.3
19.4
9.6

1,920,908
─
─
─
─
─
─

International cargo operations
Cargo revenue
Revenue cargo ton-km (million ton kms)

54.2
1,512

60.3
1,754

54.2
1,724

43.3
1,887

56.0
2,233

65.4
2,429

59.7
2,407

International cargo operations
Cargo revenue
Revenue cargo ton-km (million ton kms)

59.7
2,407

96.5
1,948

182.8
3,113

1,494,215
─Domestic cargo operations
Cargo revenue
Revenue cargo ton-km (million ton kms)

25.4
366

24.2
356

23.3
363

22.2
357

22.4
364

21.8
343

20.7
328

Domestic cargo operations
Cargo revenue
Revenue cargo ton-km (million ton kms)

20.7
328

21.7
237

20.7
231

169,548
─

117 JAL REPORT 2022TOP

JAL REPORT 2022 118

Data Section

Business Data
International passenger operations
Passenger revenues
ASK (million seat kms)*11 *13
RPK (million passenger kms)*12 *13
Revenue passengers carried (1,000)*13
Revenue passenger load factor (%)*13
Yield (yen)*13
Unit revenue (yen)*13*1	IFRS is adopted from FY2020. Accordingly,
figures for FY2019 are also calculated under
IFRS for comparison.
*2	US dollar amounts are provided forconvenience only, based on the exchange
rate of ¥122.39/ USD on March 31, 2022.
*3	Free cash flow = Cash flow from operating
activities + Cash flow from investing activities*4	[Japanese GAAP] EBITDA = Operating Profit+ Depreciation and Amortization [IFRS]EBITDA = EBIT + Depreciation*5	[Japanese GAAP] EBITDAR = Operating
income + Depreciation expense + Aircraft
lease*6	Japan Airlines Co., Ltd. conducted a 2-for1 stock split on October 1, 2014. Figures forprofit per share, net assets per share anddividend per share have been calculated
assuming the stock split was conducted at
the start of FY2013.
*7	Shareholder's Equity Ratio based on credit
rating evaluation considering Hybrid Finance.
*8	[Japanese GAAP] EBITDA Margin = EBITDA/
Operating Revenue [IFRS] EBITDA Margin =EBITDA/ Revenue*9	[Japanese GAAP] EBITDAR Margin =EBITDAR/ Operating Revenue*10	Unit cost = Consolidated air transport cost(excluding fuel costs) / ASK*11	ASK (available seat kilometers). A unit ofpassenger transport capacity: Total numberof seats x Distance flown (kms)*12	RPK (revenue passenger kilometers).
Total flight distance covered by revenue
passengers: Number of revenue passengers
x Distance flown (kms).
*13	From FY2015, revenue passengers carried,
revenue passenger kilometers, available
seat kilometers and load factor include
codeshare tickets sold by other companies
for JALoperated flights.
*14	From FY2020, Changes in codesharepassengers on other airlines are reflected
and to the figures for FY2019 as well forcomparison analysis.

Sustainability

1,385.9
1,308.8
88.8
88.1
48.0
80.8
▼ 233.7▼ 38.8▼ 152.8
162.4
251.2

Medium Term Management Plan

1,309.3
1,142.5
166.7
157.6
166.2
247.9
▼ 166.7▼ 61.9
81.2
82.7
249.5
281.0
164.5

FY2019The JAL Group Value Creation Story

Years ended March 31
Operating revenue
Operating expenses
Operating income
Ordinary income
Profit attributable to owners of parent
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Free cash flow*3
Depreciation and amortization
EBITDA*4
EBITDAR*5
Capital investment (Purchase of non-current assets)

IFRS*1

Chapter 5 Data Section

1. Data Highlights

2. ESG Data

3. Business Data

4. Financial Data

5. Other Data

Number of Visitors to Japan

Economic Conditions

Foreword

Evaluation and Analysis of Financial Conditions
Analysis of Consolidated Operating Results(Millions of visitors)

35
30■ 1. Earnings Summary

25
20

Revenue

682.7

EBIT

billion yen▼239.4billion yen

Loss attributable toowners of parent▼177.5billion yen

15
10
5(Year)

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

0

Source: Japan National Tourism Organization

Global Passenger Traffic (scheduled flights)(Millions of passengers)

5,000
3,750
2,500

FY2021 Changes in EBIT

0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020

(Year)

ASK y/y：＋55.4％
RPK y/y：＋59.3％

Source: ICAO - 2020 Statistics＋ indicates profit increase (revenue increase, cost decrease)▼ indicates profit decrease (revenue decrease, cost increase)＋158.8JPY Bn(JPY Bn)

Air Passenger Traffic Forecast

22.0 billion yen of Personnel cost reduction

Compound Annual Growth Rate 2020-2041

through employment subsidies and secondment

RPK in Billions
2019*indicates income/expenses for which the abobe is included for accounting puposes

2041

1,923 4,211

Cargo &
Mail

North America

Europe▼398.3774 1,707
Middle East
3.7%

Africa2.9%▼48.6
Maintenance＋4.8％▼50.3%＋61.7

Asia／Pacific
4.5%

Int’l
Passenger

442

▼10.9

＋11.3

▼18.8%

＋7.5%

World

Source: International Civil Aviation Organization＋3.6%*Others*2

▼15.9

＋12.5

▼4.9%

＋227.2%

FY21

FY20

＋153.4％

FSC*3・FX

FSC
FX(Total)

＋3.0
＋2.2
＋5.2

FSC
FX
(Total)

＋12.2
＋7.9
＋20.1

FSC
FX
(Total)Revenue ＋201.4JPY Bn (＋41.9%)
as “EBIT”) was a loss of 239.4 billion yen (EBIT loss of 398.3
billion yen in the previous year). The loss attributable to owners of
the parent was 177.5 billion yen (the loss attributable to owners of
the parent 286.6 billion yen in the previous year).

—
＋1
＋1

FSC TTLFX TTL(Total)

＋15.3
＋10.3
＋25.6

Landing and navigations fees
Sales commissions
Services
Expenses of Travel Products
Others
Total

＋3.9
▼3.9
▼3.8
＋3.4
▼15.5
▼15.9

Subsidies
Others
Total

＋5.4
＋7.0
＋12.5

Data Section

JAL Group

119 JAL REPORT 2022

＋9.0

Other
Expenses＋69.5％

4.0%

In FY2021, the revenue for the consolidated fiscal year increased
by 41.9% year-on-year to 682.7 billion yen, the operating
expenses increased by 6.2% year-on-year to 940.2 billion yen, theloss/earning before financing and income tax (hereinafter referred*Personnel＋35.5％

8,486 20,025

2.9%

Aircraft

＋42.9

826

Central and South America▼239.4Fuel＋7.2

Domestic
Passenger

2,903 7,576

4.1%

341

＋89.5

*OtherRevenues*1

Sustainability

3.6%

1,975 4,770

180Medium Term Management Plan

1,250

and rise in fuel prices in the market. Maintenance costs roseby 10.9 billion yen due to higher engine maintenance costs.
Personnel costs decreased by 9.0 billion yen due to a decrease
mainly in executives’ salaries and employees’ earnings linked
bonus payments. We responded to the decrease in demand by
making continuous efforts of reducing our capacity in order tominimize our operating costs, together with reducing the actual
fixed costs. As a result, the consolidated operating expense
increased by 6.2 % year-on-year to 940.2 billion yen.
EBIT was a loss of 239.4 billion yen (EBIT loss of 398.3 billion
yen in the previous year). Loss attributable to owners of parent
was 177.5 billion yen (loss attributable to owners of parent 286.6
billion yen in the previous year) as a result of income tax expensedecrease by recording deferred tax asset.

In FY2021, the international passenger demand has been sluggish
since the pandemic, but as quarantine easing progressed, its
revenue increased by 42.9 billion yen year-on-year. The domestic
passenger demand repeated to rise and fall throughout the year
due to the declaration of a state of emergency. However, becauseof improved preference for the JAL Group and its agile capacity
recovery, the domestic passenger revenue increased by 61.7 billion
yen year-on-year. The cargo and Mail business revenue increased
by 89.5 billion yen year-on-year due to very strong demand of
air cargo during the prolonged disruption of ocean shipments
throughout the year. As a result, the consolidated operating
revenues increased by 41.9% year-on-year to 682.7 billion yen.
As for expense, jet fuel costs increased by 48.6 billion yen as aresult of increase in fuel consumption due to capacity recovery

The JAL Group Value Creation Story

This fiscal year (April 1, 2021 to March 31, 2022) was a toughyear again for the JAL Group due to the prolonged COVID
infection. As the infection continued, we grappled to maintainour domestic and international route network while implementing
hygiene and contactless measures to ensure safety and security
for passengers was our first priority. Facing a delayed recoveryof passenger demand, we aimed for early recovery from the
COVID situation by implementing fundamental cost reduction
measures and maximizing cargo revenue to improve profitability,
together with public support from the Japanese government
such as exemption of landing fees and jet fuel tax or subsidies for
employment to assist the airline industry.
We will work together to fulfill our mission as a public
transportation provider to enable our valued passengers to use
our service with comfort, as the COVID infection settles and airtransport demand solidly recovers in and after 2022.

Expenses ▼55.1JPY Bn (▼6.2%)*1 Other Revenue = Travel Agency, Mileage, Ground Handling etc.
*2 Others = Gain or Loss on Sales of Aircraft, Other Revenue, Share of Profit or Loss of Investment and Income/Expenses from Investment*3 FSC = Fuel Surcharges

TOP

JAL REPORT 2022 120

Chapter 5 Data Section

1. Data Highlights

2. ESG Data

3. Business Data

4. Financial Data

5. Other Data

Domestic Passengers②Domestic Passenger Operations (Full Service Carrier)*1■ 2. Segment Earnings

Revenuebillion yen

Components of Revenues from the Air Transportation Segment（Millions of yen）

The revenue in Air Transportation Segment increased by 48.8%
year on year to 642.5 billion yen and the loss before investing,financing and income tax (hereinafter referred as “Segment profit(or loss)”) was 250.1 billion yen (segment loss of 403.3 billion yen
in the same period in the previous year). (Revenue and Segment
profit (or loss) are before elimination of transactions between
segments.) Details of revenue are shown in the table on the right.

FY2021

FY2020y/y (%)

International (Full Service Carrier)Passenger operations

27,917

68,785+146.4

Cargo operations

96,553

182,877+89.4

Mail-service operations

7,344

11,089

+51.0

333

746

+123.8132,149

263,499+99.4

Luggage operations
Sub total
Domestic (Full Service Carrier)

174,006

235,100+35.1

21,73520,751▼4.5

Mail-service operations

3,192

3,653

+14.4

Luggage operations

219

312

+42.2

Sub total

199,154259,817+30.5

Total revenues from international and domestic operations

331,304

523,316+58.0

Other revenues (The passenger revenues for LCC is included)

100,517

119,248+18.6

Total revenues

431,821642,565+48.8*1 The amounts are rounded down to the nearest million yen and the percentages arerounded off to the first decimal place.
*2 For SPRING JAPAN, as the results from acquisition of the subsidiary until the end ofJune are minor, traffic results from July are included as traffic results for LCC.

①International Passenger Operations (Full Service Carrier)*1

FY2021

FY2020+146.4357

892

ASK (MN seat km)

11,91822,780+91.1

RPK (MN passenger km)

2,196

6,027

+174.4L/F (%)

18.4％

26.5%

+8.0ptRevenue per Passenger (JPY)*2

78,08577,073

▼1.3

12.7

11.4

▼10.2

2.3

3.0

+28.9

*3

Yield (JPY)*4

Unit Revenue (JPY)● Passenger Revenue+149.6

America
EuropeAsia / Oceania
China
Hawaii / Guam
Total

FY2020+234.0+102.9+116.3+36.8+287.1+146.4

RPK (million passenger kilometers) (left hand scale)*5
ASK (million seat kilometers) (left hand scale)

Revenue Passenger-Load factor (%) (right hand scale)*5

60,00090.0
80.0

50,00070.0
40,00040.0

22,78020,00020.0

10,000
0

30.0

26.5

6,027
2017

2018
Japanese GAAP

2019

2019

2020

2021

10.0
0
(FY)

y/y

342
90
377
52
28
892

102
45
167
36
5
357

FY2020America
EuropeAsia / Oceania
China
Hawaii / Guam
Total

+235.3+100.7+125.4+43.7+385.3+149.6FY2021

5,733
2,627
3,307
142
106
11,918

10,962
4,467
6,530
308
511
22,780

+91.2
+70.0
+97.4
+115.9+379.2+91.1(MN passenger km)

FY2020America
EuropeAsia / Oceania
China
Hawaii / Guam
Total

FY2021

y/y

3,195
840
1,711
103
176
6,027

970
410
710
68
36
2,196

+229.2+104.8+141.1+49.9+387.4+174.4

12,212

16,238+33.0

ASK (MN seat km)

19,452

24,535+26.1

RPK (MN passenger km)

9,282

12,089+30.2

L/F (%)

47.7％

49.3％

+1.6ptRevenue per passenger (JPY)*2

14,24914,478+1.6

Yield (JPY)*3

18.7

19.4

+3.7

Unit Revenue (JPY)*4

8.9

9.6

+7.1

FY2020

FY2021

16.9
15.6
21.5
48.2
33.9
18.4

Revenue Passenger-Load factor (%) (right hand scale)*5

40,00080
70

30,00060
24,53520,000*1 Excl. LCCs
*2 Revenue per Passenger = Passenger Revenue / Passenger*3 Yield = Passenger Revenue / RPK*4 Unit Revenue = Passenger Revenue /ASK
*5 P assengers with mileage award tickets are included from FY2020 due to revenue
recognition change by applying IFRS and also included in the previous year’s figures forcomparison analysis

40

FY2021

FY2020y/y (%)

International
Cargo operations (JPY Bn)

96.5

182.8

＋89.4

Mail-service operations (JPY Bn)

7.3

11.0

＋51.0

Revenue cargo ton-km (millions)

1,948

3,113

＋59.8

155

160

＋3.3

Cargo operations (JPY Bn)

21.7

20.7

▼4.5

Mail-service operations (JPY Bn)

3.1

3.6

＋14.4

Revenue cargo ton-km (millions)

237

231

▼2.7

Mail ton-km (millions)

20

22

＋9.7

Mail ton-km (millions)
Domestic

30

12,08910,000

20
10

0

2017

2018

2019

2019

Japanese GAAP

③Cargo and Mail

50

49.3

2020

2021

0

（FY）

IFRS

④LCC

Revenue for LCC operations were as follows; international
passenger revenue was 2.1 billion yen, domestic passenger
revenue was 0.6 billion yen. Traffic results for LCCs were as
follows; passenger traffic 38,320 (number of passengers),
Revenue passenger km 120,889 (1,000 passenger-km), Available
seat km 1,829,817 (thousands) and load factor 6.6% forInternational Passenger Business, and passenger traffic 70,259(number of passengers), Revenue passenger km 55,012 (1,000
passenger-km), Available seat km 125,332 (thousands) and loadfactor 43.9% for Domestic Passenger Business. For SPRING
JAPAN, as the results from the acquisition of the subsidiary until
the end of June are minor, traffic results from July are included astraffic results for LCC.

(2) Other Businesses
Results of JALPAK Co., Ltd. and JAL Card Co, Ltd. are shown below.

JALPAK Co., Ltd.

JAL Card Co., Ltd
FY2020

FY2021

FY2020

FY2021

Overseas travelers handled (10,000 number of travelers)

0.0

0.0

+51.1

Memberships (10,000 number of members)

358.0

346.1

▼3.3

Domestic travelers handled (10,000 number of travelers)

114.1

100.4

▼12.0

Revenue (before elimination of consolidated transactions), (billions of yen)

18.6

18.5

▼0.7

Revenue (before elimination of consolidated transactions), (billions of yen)

55.5

45.8

▼17.6

y/y (%)■ 3. Analysis of Factors Affecting Operating Expenses

Operating Expenses

940.2

y/y (%)

Actual Fixed Costs

billion yen

465.7

billion yen

y/y

29.2
18.8
26.2
33.4
34.5
26.5

+12.3pt+3.2pt+4.7pt▼14.8pt+0.6pt+8.1ptMajor Operating Expenses(JPY Bn)
FY2020

FY2021

Fuel
Landing and Navigation fees
Maintenance
Sales Commissions
Services*1
Other Variable cost*2
Aircraft*3
Personnel*3
Other cost*3
Total Operating Expenses

96.7
38.4
58.1
3.7
11.0
91.5
151.5
254.8
178.8
885.0

Actual Fixed Costs*4

493.7

Diff.

y/y (%)

145.4
34.5
69.1
7.7
14.8
103.0
140.1
245.7
179.5
940.2

+48.6
▼3.9
+10.9
+3.9
+3.8
+11.4
▼11.3
▼9.0
+0.6
+55.1

+50.3
▼10.2
+18.8
+105.3
+34.9
+12.5
▼7.5
▼3.6
+0.4
+6.2

465.7

▼27.9

▼5.7

 ervices = Expenses regarding inflight services, airport lounges, cargo equipment, etc.
*1 S
*2 Other Variable Costs = Travel agency, Mileage, Ground handling etc.
*3 Includes costs that have variable factors such as the number of flights and passengers,
and temporary and additional costs associated with business structural reforms.
 ctual Fixed Costs excludes the variable factors such as the number of flights and passengers,*4 A
and temporary and additional costs associated with business structural reforms■ 4. Profit Attributable to Owners of Parent

In terms of expense, jet fuel costs increased by 48.6 billion
yen as a result of increase in fuel consumption due to capacity
recovery and rise in fuel price in the market. Maintenance costsrose by 10.9 billion yen due to higher engine maintenance costs.
Personnel costs decreased by 9.0 billion yen due to a decrease
mainly in executives’ salaries and employees’ earnings linked
bonus payments. Our efforts to reduce costs have been steadily
showing results, and the actual fixed cost is 465.7 billion yen,which is a reduction of 34.3 billion yen from the initial target of
500.0 billion yen. We also responded to the decrease in demandby making continuous efforts of reducing our capacity in order tominimize our operating cost, resulting in an operating expense
increase of 6.2% year-on-year to 940.2 billion yen.
As a result, EBIT was a loss of 239.4 billion yen (EBIT loss of
398.3 billion yen in the previous year).

Loss attributable to
Owners of Parent▼177.5 billion yen

The loss attributable to owners of the parent was 177.5 billion yen (the loss attributable to owners of the parent 286.6 billion yen in theprevious year) as a result of income tax expense decrease by recording deferred tax asset.
TOP

JAL REPORT 2022 122

Data Section(%)● Load Factor

121 JAL REPORT 2022

Passengers (ʼ000)

RPK (million passenger kilometers) (left hand scale)*5
ASK (million seat kilometers) (left hand scale)

y/y

● RPK

America
EuropeAsia / Oceania
China
Hawaii / Guam
Total

+35.1

(MN seat km)

● ASK

IFRS

*1 Excl. LCCs
*2 Revenue per Passenger = Passenger Revenue / Passenger*3 Yield = Passenger Revenue / RPK*4 Unit Revenue = Passenger Revenue /ASK
*5 P assengers with mileage award tickets are included from FY2020 due to revenue
recognition change by applying IFRS and also included in the previous year’s figures forcomparison analysis

FY2021

235.1

Sustainability

30,000

46
15
28
8
3
100

34
18
32
14
2
100

(‘000)

America
EuropeAsia / Oceania
China
Hawaii / Guam
Total

60.0
50.0

FY2021● Revenue Passengers Carried

FY2020International Passengers(%)

Component Ratio

FY2021y/y

174.0

Medium Term Management Plan

68.7

27.9

Passenger Revenue (JPY Bn)
Passengers (ʼ000)y/y (%)

Revenues of international routes by geographic segment*1

Passenger Revenue (JPY Bn)

The JAL Group Value Creation Story

Passenger operations
Cargo operationsy/y (%)

Foreword(1) Air Transportation Segment

642.5

FY2021

FY2020Chapter 5 Data Section

1. Data Highlights■ 5. Cash Flow

2. ESG Data

4. Financial Data

3. Business Data

Cash Flows from Operating Activities

Cash Flows from Investing Activities▼103.5

Cash Flows from Financing Activities▼173.7359.2

billion yen■ 7. Financial Position

billion yen

The balance of Cash and Cash equivalents at the end of the current fiscal year increased by 85.8 billion yen from the end of the previous
fiscal year to 494.2 billion yen.

Cash Flow(JPY Bn)

Cash Flows from Operating Activities

FY2021

FY2020▼103.5+115.9Depreciation and Amortization

182.4

178.4

▼3.9

Cash Flow from Investing Activities▼91.0▼173.7▼82.7

Capital Investment
Free Cash Flow*1▼97.8▼189.5▼91.7▼310.5▼277.3

+33.2

388.6

359.2

▼29.3

78.0

81.9

+3.8

▼215.8▼61.0+154.8Cash Flow from Financing Activities
Total Cash Flow*2

Cash Flows from Investing Activities

EBITDA*

3

Cash flow from investing activities (outflow) was 173.7 billion
yen mainly due to expenditures for acquiring Fixed assets (cashoutflow of 91.0 billion yen for the previous year).

*1 Cash Flow from Operating Activities + Cash Flow from Investing Activities*2 Cash flow from Operating Activities + Cash Flow from Investing Activities + Cash
Flow from Financing Activities*3 EBITDA=EBIT + Depreciation

Cash Flows from Financing Activities
Cash flow from financing activities (inflow) was 359.2 billion yen
due to long term debts and issuance of bonds (cash inflow of
388.6 billion yen for the previous year).

161.3

33.7 (41.1 )*2%End of FY21

Diff.

Consolidated Balance Sheet(JPY Bn)
End of FY20

2,107.2

2,371.6

Cash and Deposits

408.3

494.2

+85.8

Balance of Interest-bearing Debt

515.1

928.4

+413.3+17.1 (▼6.0)

Total Assets

Repayment within one year*1

69.6 (20.5)

86.7 (14.4)

947.4

799.7

▼147.7

Shareholdersʼ Equity Ratio (%)*2 *545.0%

33.7% (41.1%)▼11.2pt

D/E Ratio (x)*6

0.5x

1.2x

+0.6x

Net D/E Ratio (x)*3 *7

0.1x

0.5x (0.3x)+0.4x*1 Figures in brackets represent aircraft lease payment within one year
*2 Figures in brackets represent Equity Ratio based on credit rating evaluationconsidering Hybrid Finance*3 Figures in brackets represent Net D/E Ratio based on credit evaluation considering
Hybrid Finance*4 Shareholders’ Equity = Equity attributable to owners of the parent*5 Shareholders’ Equity Ratio = Ratio of equity attributable to owners of the parent tototal Assets*6 D/E Ratio = Interest-Bearing Debt/ Shareholders' Equity*7 Net D/E Ratio = (Interest-Bearing Debt – Cash and Deposits) / Equity■ 8. Credit Ratingsbillion yen

JAL’s current credit ratings are shown in the table on the right.

(As of August 2022)

FY2021 Fleet
End of Mar 2021

End of Mar 2022
RetiredAircraft
Excluded

Owned

LeasedTotal 1RetiredAircraft
Excluded

8

8

11

4

15

15

+7

13

13

13

0

13

13

—

4

0 *2

4

0

4

0 *2

—

0

11

6

8

0

8

5

▼1

0

9

0

4

0

4

0

—

Large

Owned

LeasedAirbus A350-900

44Boeing 777-300ER

130

Boeing 777-300

40Boeing 777-200ER

11

Boeing 777-200

9
41

4

45

27

40

4

44

33

+6

17

3

20

20

19

3

22

22

+2

Boeing 787-8

27

0

27

27

25

0

25

25

▼2

Boeing 767-300ER

29

0

29

29

29

0

29

29

—

Middle
FSC*1

Boeing 767-300

Small

Middle-sized Total

Regional

Total1

Total 2

Boeing 787-9

Large-sized Total

LCC

Diff.
Total 2 ofend of Mar
2022 and
2021

Total 2

Boeing 737-800

2

0

2

2

0

0

0

0

▼2

75

3

78

78

73

3

76

76

▼2

43

18

61

61

47

12

59

58 *2

▼3

(1) Hedging Policy
For international routes, fuel surcharges allow the Company
to offset some of its fuel costs. As a result, the Company uses
fuel hedging for fuel used on domestic routes. In addition, theCompany’s foreign currency revenues are roughly the same as its
foreign currency expenses, excluding fuel costs. Consequently, theCompany uses fuel and exchange rate hedging only for fuel costs.

43

18

61

61

47

12

59

58

▼3

32

0

32

32

32

0

32

32

—

De Havilland DHC-8-400CC

5

0

5

5

5

0

5

5

—

SAAB340B

3

0

3

2*

0

0

0

0

▼2

ATR42-600/ATR72-600

10

1

11

11

12

1

13

13

+2

Dubai Crude Oil (USD/bbl)
FX rate (USDJPY)

50

1

51

50

49

1

50

50

—

FSC*1 Total

209

26

235

216

209

20

229

217

+1

Boeing 787-8

2

0

2

2

4

0

4

4

+2

Boeing 737-800

0

0

0

0

0

6 *3

6

6

+6

LCC Total

2

0

2

2

4

6

10

10

+8

211

26

237

218

213

26

239

227

+9

*1 FSC = Full Service Carrier*2 The difference between Total 1 and Total 2 is retired aircraft as of the end of March*3 Increase due to the consolidation of Spring Japan

A– (Negative)

Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating

A (Negative)

Forex hedging

Fuel hedging

Foreign currency Foreign currency
revenues
expenses

Fuel use

InternationalroutesNon-fuelcosts

FSC
revenuereceived*2

FY2020Singapore Kerosene(USD/bbl)

FY2021

Domestic
routesy/y (%)

81.6

+87.6

42.0

74.3

+76.9

106.0

111.6

+5.3

43.5

(2) Overcome Market Risks
The impact of volatility in fuel prices is mitigated by hedging
and fuel surcharges, however there is some time lag of theireffects each year. However, over a medium-term timeframe, theCompany has been largely successful in mitigating the risk offluctuations in fuel prices. Based on cumulative changes in prices
over a certain period of time, the Company has offset the impactof those changes through hedging and fuel surcharges.

HedgedThe Company is exposed to fuel cost risks on
domestic routes, which do not have the FSC*1

The Company is exposed to forex risks related to fuelcosts, as foreign currency expenses excluding fuelcosts are largely offset by foreign currency revenues*1 In normal times, the Company uses fuel hedging for fuel used on domestic
routes, which is equivalent to approximately 40% of all fuel consumed by theGroup’s air transport operations*2 FSC…Fuel Surcharge

Illustrative chart of cumulative price impacts

Data Section

FSC*1 + LCC Total

Issuer rating

Fuel costs
Fuel/FX Markets

Small-sized Total

Regional Total

Rating & Investment Information, Inc. (R&I)■ 9. Fuel and Exchange Rate Hedging

Embraer 170/Embraer 190

2+264.3

Shareholdersʼ Equity*4

Fuel prices / forex
FSC / hedging
impactProfit fluctuation

0

123 JAL REPORT 2022%

Sustainability

Capital investment in FY2021 totaled
161.3 billion yen (including expenditure
for intangible assets). The JAL Group has
made investments for the introductionof new aircraft to improve operational
efficiency, for intangible assets including
investments to increase competitivenessto meet diverse customer needs, andfor system investments to improve
convenience and efficiency.
The main capital expenditures in FY2021
were advance payments to purchaseeleven new aircraft (seven Airbus A350900s, two Boeing 787-9s and two ATR42600s). The following major assets weresold: eight Boeing 777- 200s, two Boeing
767-300s and three SAAB340Bs.
With regard to capital expenditure, we will
carefully select and steadily implement
growth investments that will contributeto the enhancement of corporate
value, such as introducing new aircraftwith superior fuel efficiency and cabin
comfort, strengthening the LCC business,promoting touchless self-services withgreater efficiency, and investing in IT to
improve customer convenience, as we
restructure the financial foundation baseand invest for sustainable growth.

Capital Investment

Despite the difficult situation, we have secured shareholders’equity of 799.7 billion yen and shareholders’ equity ratio basedon credit rating evaluation considering hybrid finance of 41.1%.
Moreover, we have kept Net D/E Ratio based on credit evaluationconsidering hybrid finance at 0.3, keeping a healthy level.
(Assets)
Assets at the fiscal year-end increased by 264.3 billion yen fromthe end of the previous fiscal year to 2,371.6 billion yen, mainly
due to Cash and Cash equivalents increase.
(Liabilities)
Liabilities increased by 401.7 billion yen from the end of the previous
fiscal year to 1,527.5 billion yen due to hybrid financing which was
aimed at improving financial foundation and securing investment
funds in advance for sustainable growth at the same time.
(Equity)
Equity decreased by 137.3 billion yen from the end of the previous
fiscal year to 844.1 billion yen, as a result of an increase in the net
loss.

Shareholders’ Equity Ratio

billion yen

Medium Term Management Plan

■ 6. Capital Investment and Aircraft Procurement

799.7

The JAL Group Value Creation Story▼219.5

Cash Flow from Operating Activities

As a result of adding back or subtracting non-cash items including
depreciation, retirement benefit liabilities, operating receivables
and operating payables to/from loss before income tax of 246.6
billion yen, cash flow (outflow) from operating activities was 103.5
billion yen (cash outflow of 219.5 billion yen for the previous year).

Diff.

Shareholders’ Equity

Forewordbillion yen

5. Other DataTOP

JAL REPORT 2022 124

Chapter 5 Data Section

1. Data Highlights

2. ESG Data

4. Financial Data

3. Business Data

5. Other Data

recovery and cash flow improvement is promising if there areno significant event risks. Therefore, we will aim for dividend
payments for the fiscal year ending March 2023. We will strive for■ 10. Retirement Benefit Obligations(7) Aviation Safety Risk

(3) Climate Change Risk, Global Warming Risk and Risks
related to Environmental Regulations

demand recovery and JAL regrettably recorded significant
losses for this fiscal year that makes losses in two consecutive
years. Considering the surrounding business environment suchas the apparent geopolitical risk and the surge of fuel price, we
believe securing liquidity at hand to enhance our risk tolerance
and financial foundation is the best for JAL at this moment,
thus we have determined not to provide year-end dividends
in order to secure liquidity at hand. We regret that we cannot
pay dividends to our shareholders, but we would like to ask fortheir understanding in this situation. In terms of dividends forthe fiscal year ending March 2023, it may take some more time
for international passenger demand to recover fully from the
COVID infection, but a steady recovery of domestic passenger
demand seems possible. While we have to keep a close eye on
the geopolitical risk and the fuel price hike risk, our performance(6) Market Fluctuation Risk
①Fuel Price Fluctuation Risk
②Exchange Rate Fluctuation Risk
③Capital Market Risk and Financial Market Risk

(4) External Environment Risk such as International Affairs
and Economic Trends①External Environment Risk
②Competitive Risk
(5) Aircraft Delivery Risk(8) Regulatory Risk, Environmental Compliance Risk andLitigation Risk
①Regulatory Risk
②Litigation Risk
(9) IT Risk and Customer Data Protection Risk
(10) HR Risk and Industrial Relations Risk
For more information, please visit the JAL website.
WEB

https://www.jal.com/en/investor/risk/

Medium Term Management Plan

Total return ratio (FY2017-FY2021)*1 *2(%)(billion yen)
80.9

200
150.8

135.4

49.2

44.5
100

32.3

29.4
20.0

0

85.0

72.8

Sustainability

38.7

20.0
38.3

35.3
53.4

39.3

40.0

48.0
20.0
18.8

20.0
18.8

0.0

-100
-200
-300

2017

2018

2019

2019

Japanese GAAPNet profit/loss(billion yen)

▼177.5

2020

2021

(FY)

IFRS

Total dividends(billion yen)

Dividend payout ratio (%)▼286.6

Repurchase amount(billion yen)

Data Section

125 JAL REPORT 2022

(1) Pandemic Risk
①Risks related to short-term impact on businessperformance②Risk related to medium- to long-term changes in thebusiness environment(2) Natural Disaster Risk and risks related to external
factors including Terrorist Attacks■ 11. Distribution of Profits
JAL regards shareholder returns as one of our most importantmanagement matters. Our fundamental policy is to actively
implement shareholder returns through continuous and stabledividends and flexible share repurchases, while securing internal
reserves for making investments for corporate growth in the future
and changing business environment and to build a strong financial
structure.
Considering the uncertain business environment, JAL currently
positions the current situation as the “financial foundation
restructuring phase”. In this phase, JAL will prioritize a
restructuring of our financial foundation and enhancement ofrisk tolerance. Then, JAL will quickly restructure its financial
foundation and recover cash flow generation and move to the“sustainable growth phase”. Resources will gradually be allocatedto shareholder returns and investment for sustainable growth
based on the business environment.
In the “sustainable growth phase”, JAL will decide the dividend
per share level considering its continuity, stability and predictability
with reference to a payout ratio of approximately 35%. In addition,
JAL will proactively and flexibly consider share repurchases,
considering its financial position and other factors. As a result, JAL
seeks to achieve a total payout ratio, which combines the total
dividends paid out and the total amount of the share repurchases,of an approximately 35% to 50% range through appropriately
sharing periodic profits and allocating capital among all of its
stakeholders.
At the same time, JAL continuously strives to improve capitalefficiency through monitoring the total return on equity ratio,
which is calculated by dividing the sum of total dividends paidout and share repurchases by shareholders’ equity. JAL makes
its efforts to maintain this ratio at approximately 3% or above.
The company's articles of incorporation stipulate that JAL "maypay interim dividends to shareholders with the record date of
September 30 each year, upon a resolution by the Board of
Directors."
Even though the prolonged COVID infection is settling down andthe passenger demand, especially domestic demand, is gradually
coming back, the prolonged infection delayed passenger■ 12. Business Risks

The JAL Group Value Creation Story

Japan Airlines and consolidated subsidiaries have a lump-sum
retirement benefit plan. The Corporate Pension Fund also has
three funds, including the Japan Airlines Welfare Pension Fund.
Some subsidiaries overseas also have defined benefit plans.
The Japan Airlines Welfare Pension Fund, whose parent company
is Japan Airlines, has introduced a plan similar to a cash balance
plan as an optional plan. Furthermore, the JAL Group Corporate
Pension Fund comprising of domestic consolidated subsidiaries
and other companies has introduced a cash balance plan.

Foreword

Japan Airlines and major consolidated subsidiaries have fundedand unfunded-defined benefit plans and defined contributionplans covering substantially all of their employees. At the time ofretirement, a premium severance package may be paid which is
not subject to defined benefit plan obligations based on actuarial
calculations in accordance with IFRS. These pension plans are
exposed to general investment risks, interest rate risks, life risks,and other risks, but are not considered to be significant risks.
Accumulated defined benefit plans are operated by pension funds
that are legally segregated from the JAL Group. The board of
directors of pension funds or outsourced companies are requiredby law to act in the interests of members with priority and put thecapital of pooled assets to work under prescribed policies.
As of the end of the current fiscal year, 38 companies from among

early performance improvement and financial recovery in order torealize a continuous and steady return to shareholders again.

Total return ratio (%)*1 Total Return Ratio = (Total Dividends + Share Repurchases) / Profit or Loss*3 *4*2	EBIT Margin and EBITDA Margin for FY2020 and FY2021 are not shown as they
are negative figures. Payout Ratio and Total Return Ratio for FY2020 and FY2021
are not shown as no dividend has been provided.
*3	Profit/loss attributable to owners of parent*4	Profit attributable to owners of parent for FY2017–2018 excludes the effects ofincome taxes deferredTOP

JAL REPORT 2022 126

Chapter 5 Data Section

1. Data Highlights

2. ESG Data

3. Business Data

5. Other Data

4. Financial Data

Company Profile(as of March 31, 2022)

Corporate Name
Head Office（as of March 31, 2022）● Stock ExchangePrime Market of the Tokyo Stock Exchange● Stock Code

9201● Number of Shares Per Unit

100 shares● Account Closing DateMarch 31

● Ordinary General Meeting of ShareholdersJune each year

● Date of Finalizing Shareholders Eligible to Exercise Voting Rights at

the Ordinary General Meeting of Shareholders● Date of Record for DividendMarch 31

September 30 and March 31● Total Shares Issued 750 million(Common stock) (700 million)(Class 1 Preferred stock) (12.5 million)(Class 2 Preferred stock) (12.5 million)(Class 3 Preferred stock) (12.5 million)(Class 4 Preferred stock) (12.5 million）● Method of Official Announcement

Electronic public notice at:
URL www.jal.com/en/corporate/publicnotices/ (only in Japanese)
Provided, however, that if the electronic notice cannot be made due
to an accident or any unavoidable reason, the public notice shall be
published in the Nihon Keizai Shimbun.
 imitation on Listing or Recording of Citizens of Foreign Countries●Land Other Persons in Register of Shareholders and Register ofBeneficial Shareholders

Major ratings and awards are also posted on the JAL website.

* The total number of shares issued includes 136,291 shares of treasury stock.

WEB

https://www.jal.com/en/outline/awards.html

WEB

https://press.jal.co.jp/en/awards/● Major Shareholders

Number ofshares held
(stock)Shareholder

Voting rights
ratio
(%)

The Master Trust Bank of Japan, Ltd.(Trustaccount)

64,908,200

14.85

Custody Bank of Japan, Ltd.(Trust account)

13,160,900

3.01

MSIP CLIENT SECURITIES

8,151,547

1.86

UBS AG LONDON A/C IPB SEGREGATED CLIENT
ACCOUNT

8,006,870

1.83

Kyocera Corporation

7,638,400

1.74

Daiwa Securities Group Inc.

5,000,000

1.14

MLI FOR SEATOWN MASTER FUND-PB

3,374,200

0.77

DAIWA CM SINGAPORE LTD-NOMINEE ROBERTLUKE COLLICK

3,140,000

0.71

SSBTC CLIENT OMNIBUS ACCOUNT

2,858,062

0.65

GOVERNMENT OF NORWAY

2,784,286

0.63

119,022,465

27.23

Total

Comprehensive evaluation of service
quality, safety and security initiatives,and sustainability initiatives

Evaluation of infectious disease measures (safety and security initiatives)

SKYTRAX「COVID-19 Safety Rating」

APEX「WORLD CLASS」

APEX「Health Safety Powered by
SimpliFlying Audit Diamond」

Best rated 5 stars

SKYTRAX「COVID-19 ExcellenceAward」

Highest rating for DiamondFirst Japanese airline

Evaluation of ESG strategy

Evaluation of airport and in-flight products and services

SKYTRAX「World Airline Star Rating」

SKYTRAX「World's Best Economy Class」

From 2018

Second consecutive year

NPO J-Win 2021 J-Win Diversity
AwardsSKYTRAX「Best Economy Class Airline Seat」

Second Grand Prize, Advance Division

Fourth consecutive term (fifth)

Evaluation of D&I initiatives* Shareholding ratio is calculated by subtracting 136,291 shares of treasury stock androunding to two decimal places.

127 JAL REPORT 2022

（Yen）
5,000

Share price(Left axis)

Trading volume(Right axis)(million shares)
250

4,000

200

3,000

150

2,000

100

1,000

50

0

0

Evaluation of efforts to promote
D&I and improve accessibility

Tokyo Metropolitan Government's
Barrier-Free Mindset Corporate Supporter

Evaluation of DX initiatives
April
2018

April
2019

April
2020

The MSCI Japan Empowering Women Index

JobRainbow「D&I Award 2021」

JobRainbow「D&I Award 2021」

D&I Award

Best Rating "Best Workplace"

Top "Gold" for 6 consecutive years since 2016

April
2021

Evaluation of workstyle innovation

The Ministry of Internal Affairs andCommunications's 100 Best Telework Pioneers
First airline to receive the Minister ofInternal Affairs and Communications Award

A Brand in the Health &Productivity Stock Selection

The 2022 Certified Health & Productivity Management
Outstanding Organizations Recognition Program
JAL Group 20 companies certified

Evaluation of disclosure

Data Section

Article 12	Limitation on listing or recording of Citizens of Foreign Countries and Other
Persons in Register of Shareholders and Register of Beneficial Shareholders
12.1 If the Company receives from a person, who falls into one of thecategories listed in the items below, a request for listing or recording his or
her name and address in the register of shareholders (including the registerof beneficial shareholders; hereinafter the same), and if the acceptance ofsuch request causes the total voting rights owned by persons, who fall into
one of the categories listed in the items below, to represent one-third or
more of the Company’s total voting rights, the Company shall refuse suchlisting or recording.
(1) A person who does not have Japanese citizenship(2) A foreign country, foreign public body or similar entity(3) A corporation or other organization established under foreign laws andregulations
2.	When the Company intends to list or record all shares held by any of theshareholders listed in the items of the following paragraph, upon notificationfrom a book-entry institution in accordance with Article 151. Paragraph (1) or(8) of the Act on Book-Entry Transfer of Company Bonds, Shares, etc., andthereby the total number of voting rights held by such persons listed in theitems of the preceding paragraph will account for more than a third of theCompany’s voting rights, the Company shall list or record such shareholders
in the register of shareholders in accordance with measures provided for in
the Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism
to list or record only a part of the shares so that the total number of voting
rights held by such shareholders in the items of the preceding paragraphaccounts for less than a third of the Company’s voting rights.

Evaluation of D&I Promotion● Share Price and Trading Volume

Sustainability

The Articles of Incorporation lay down the following provision concerning the
Civil Aeronautics Act, Article 120-2.

Medium Term Management Plan

Stock Transfer Agency Department
Mitsubishi UFJ Trust and Banking Corporation
1-1, Nikko-cho, Fuchu-shi, Tokyo, Japan
Mailing address: ShinTokyo Post Office PO Box 29
Phone: 0120-232-711 (toll free (only within Japan))
Open: 9:00 am to 5:00 pm except weekends and public holidays(Japan time)
Website: www.tr.mufg.jp/daikou/ (only in Japanese)(2021 to 2022)

Common stock 437,143,500 (Number of shares per unit: 100)
Number of shareholders 481,161

Mitsubishi UFJ Trust and Banking Corporation● Contact

Major External Evaluations● Outstanding Shares Issued● Shareholder Registry Administrator

Capital273,200 million yen
Employees	Consolidated Employees 35,423 people
Employees 12,767 people
Capital andPaid-in Capital	539,541 million yen(Amount is rounded down
to the nearest million yen)
Business
1. Scheduled and non-scheduled air transport
2. Aerial work services
3. Other related business

The JAL Group Value Creation Story

Japan Airlines Co., Ltd.
Nomura Real Estate Bldg.,
2-4-1 Higashi-Shinagawa
Shinagawa-ku
Tokyo 140-8637, Japan
Phone: +81 (0)3-5460-3121
Website: www.jal.com/en
Established
August 1, 1951
Representative Director, AKASAKA Yuji
President

Stock Information

Foreword

5. Other Data

April
2022

Ministry of Economy, Trade and Industry and
the Tokyo Stock Exchange

Japan Securities Analysts Association "Award for Excellence inCorporate Disclosure"

The DX Stocks 2021

No. 1 in transportation for the third time in four years

Japan Investor Relations Association "IR Good Visual Award"
Won for the second consecutive year

TOP

JAL REPORT 2022 128

Japan Airlines Co., Ltd.
Finance Department
General Affairs Department
22-4-11 Higashi-Shinagawa, Shinagawa-ku, Tokyo
Phone: +81-3-5460-3121
The JAL Website		Corporate Information
Sustainability Information
Investor Information

https://www.jal.com/en/
https://www.jal.com/en/outline/
https://www.jal.com/en/sustainability/
https://www.jal.com/en/investor/