JAL REPORT 2023
JAL Group Integrated Report
March 2023

Chapter 1 Introduction

Table of Contents/The JAL Group Corporate Policy
JAL REPORT 2023 ｜ Table of Contents
Message from JAL Group CEO

3

Special Feature: Looking Back on the COVID-19 Pandemic

Safety andPeace of Mind

9

Chapter 2｜The JAL Group Value Creation Story
24③Responsible Procurement
Special Feature: Dialogues with Stakeholders25
Risk Management27
27①Risk Management Structure②Efforts27
Corporate Governance
29
29①Corporate Governance System
33②Management Structure36③Officer Remuneration
37④Effectiveness Evaluation
⑤Message from Outside Directors and Chair of the Board of Directors 39
5. The Trails of Challenges
43

Build a society
where everyone
can live safely,
securely and witha peace of mind

62
64
65
67
69
69
70
72
75
77
80

Growth Strategy④Travel and Regional RevitalizationNew Businesses Promoted Through Open Innovation and 
Venture Capital
（2）DX Strategy（3）Human Resources Strategy
①Human Resources Portfolio
②DEI
③Career/Reskilling④Engagement（4）GX strategy
4. Financial StrategyCommunication with Institutional Investors

Build a better
future where
everyone can feel
fulfilled andhopefulTo become the worldʼs most preferred and valued airline group,by helping to create a vibrant society and a future
where many people and goods freely move around

Chapter 3｜Growth Strategy
1. Overall Strategy
45
2. ESG Strategy
49
3. Business Strategy
5151（1）Business Model Reform
Air Passengers
52
53①Portfolio/Aircraft②FSC55
57③LCC
Cargo and Mail
58
Mileage, Lifestyle, and Infrastructure 59
59①Mileage and Lifestyle
60②Air Mobility Area/MaaS61③Contract Business

Sustainability

The JAL Group Value Creation Story

1. Materiality
11
2. JAL Group's Value Creation Story
13
3. JAL Group's Value Creation Process
15
4. Foundations of Value Creation
1717（1）Safety Charter
20（2）JAL Philosophy
21（3）Divisional Profitability Management System
（4）Governance22
JAL Group Code of Conduct (Information Disclosure and Compliance) 22
Initiatives based on the JAL Group Code of Conduct22
22①Information Disclosure and Dialogue
23②Fair Business Practices

JAL
Vision2030

Introduction

Chapter 1｜Introduction

Chapter 4｜Sustainability
Special Feature: Sustainable Charter Flight
Sustainability Initiatives
（1）Overall Sustainability（2）Key Initiatives (Metrics and Targets)
Environment
Environmental Management
Addressing Climate Change (TCFD)
Biodiversity Conservation (TNFD)

Precaution of Environmental Pollution
101
Noise Reduction
101
Effective Use of Limited Resources
101
Special Feature: Sustainability of Restaurants in the Sky103
Respect for Human Rights
105Special Feature: Eleven Priority Issues, Indicators and Targets Related to Respect for Human Rights 107
Efforts by Corporate Citizenship Activities
109
Major External Evaluations
110

111
113
117
119
121
122

4. Financial Data
Evaluation and Analysis of Financial Conditions5. Other Data
Stock Information
Company Profile
Other Media

The JAL Group Corporate Policy:
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.

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

123
125
133
133
134
134

Sustainability

81
83
84
85
89
89
90
99

Editorial Policy
Editorial Policy

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 references in preparing thisreport. The GRI Standard issued by the Global Reporting Initiative (GRI) was used as areference for ESG information.

Period covered by the report
Primarily April 2022 to March 2023 (FY2022)
Scope of the report
This report covers 191 JAL Group companies, comprising Japan
Airlines Co., Ltd., 137 subsidiaries and 53 affiliates.
1

JAL REPORT 2023

The JAL Website
WEB

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

Offers a comprehensive insight into JAL Group’s business approach, activities ingeneral, Investor Relations (IR) information and sustainability information.

Products, Services, and Events
Some of the products, services, and events contained in this report have beensuspended due to extenuating circumstances.
For the latest information, please refer to sources such as the JAL Website.

Data Section

The JAL Group has published JAL REPORT 2023 to inform stakeholders about our businessactivity outcomes in the previous financial year, our strategies for the future, and to provide
an understanding of the Group’s pursuit of social and economic values, and sustainablegrowth. This report has been collated from a wide range of both financial and nonfinancial
information that the JAL Group has deemed to be of particular importance to Groupmanagement, all of which is made available on the JAL Website.

Forward-looking Statements
This report includes forward-looking statements about the JAL Group’s businesses
and forecasts. These statements are based on our analysis of existing informationand various trends. Actual results may differ materially from forecasts set forth inforward-looking statements due to business risks and uncertainties.

Date of publication August 2023

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JAL REPORT 2023

2

Chapter 1 Introduction

Table of Contents/
The JAL Group Corporate Policy

Messagefrom
Message fromJAL
CEOJAL GroupGroup CEO

FeatureMessage from JAL Group CEO
Introduction

As the third year of the Medium Term Management Plan FY2021 to
FY2025, JAL Group has formulated its Rolling Plan 2023, and placed their
ESG strategy, one of the three pillars of the management strategy, as
the top-tier strategy to realize JAL Vision 2030. How to achieve carbon
neutrality and to secure human resources is a major issue for the airline
industry. We will work together to realize our purpose to become theworld’s most preferred and valued airline group, by helping to create
vibrant society and a future where people and goods can move aroundfreely, and to improve our corporate value over a long term.

The JAL Group Value Creation Story

By placing ESG strategy at the top of
our strategy, we will create a society ofsafety and peace of mind and asustainable future by solving social
issues, and realizing long-term
improvement in corporate value.
AKASAKA Yuji
Representative Director,
President
Japan Airlines Co., Ltd.
JAL Group CEO

Growth Strategy
Sustainability
Data Section

3

JAL REPORT 2023

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JAL REPORT 2023

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Chapter 1 Introduction

Table of Contents/
The JAL Group Corporate Policy

Message fromJAL Group CEO

human well-being. In fact, some studies state that active
people are happier.
Going forward, we would like to provide the movement ofpeople and goods as well as new social values by creating
connections and relationships between people beyond their
movement. We will develop new businesses other than in
the aviation field to generate new revenue. We believe thatthe newly generated connections between people andgoods can stimulate the air transport demand and lead toincreased profits in the airline business.
We believe that this ESG strategy will realize the sustainabilityof air transportation and the improvement of corporate value.
[Figure 2]

ESG Strategy for JAL Vision 2030
In JAL Vision 2030, I am drawn to create a society withsafety and peace of mind and a sustainable future towards
2030, in which many people and various goods can movearound freely. With the aim of accelerating the JAL Group's
initiatives for a sustainable growth towarsd this Vision,
we have decided to review and reorient our MediumTerm Management Plan based on lessons learned fromthe COVID-19 pandemic into our Rolling Plan 2023. A
particularly important revision is the repositioning of our ESG
strategy to the top strategy in Medium Term Management
Plan.

■ Redefining Business Objectives
We have defined four main business domains for the
future and are diversifying our business by restructuring
our business structure. We have redefined our businessobjectives in order to align our top ESG strategy with eachbusiness strategy to strongly promote our ESG strategy.
The FSC business domain aims to achieve both
environmental measures and network expansion. We aim tocreate a more efficient fluid network not only for aviation but
also for the entire transportation system by cooperating withother airlines such as oneworld alliance, other transportation
modes such as railways and regional aviation, among others,
while enhancing competitiveness by introducing fuel-efficientand state-of-the-art aircrafts.
The mission of the LCC business domain is to create newflows of people. We will offer easy-to-understand services
especially for the younger generation, families with children,■ The Value of Air Transportation and Societal Connections
Originally, air transportation is essential for both people andgoods. To date, we have developed air transportation asa means to achieve this goal into a safe and secure social
infrastructure, thereby generating social value. Recently,
we aim to improve sustainable value by realizing carbon
neutrality even further. On the other hand, through the
COVID-19 pandemic, the movement of people and goods
created not only physical values, but also connections andpermanent relationships between people and goods, which
are connected to fundamental social values such as theenvironment, biodiversity, the local economy, and above all,Figure 1 :Revenue Performance and Plan

SalesSales(Billions(Billionsof yen)of yen)

EBIT/Operating
EBIT/Operating
ProfitProfit(Billions(Billionsof yen)of yen)

1,850
1,850

or aboveor above

1,6581,658

1,4871,487
1,3861,386

185 185or aboveor above

176 176

1,3761,376

100 100
65 65

89 89

683 683
481 481-239-239-398-398

2018 20182019 20192020 20202021 2021
2022 2022
2023 2023
2025（FY）
2025（FY）
results）
results）（Actual（ActualFigure 2 :JAL Group's Value Creation Story
For details, please see the following pages.
p.49 ESG Strategy

2018 20182019 20192020 20202021 2021
2022 2022
2023 2023
2025（FY）
2025（FY）（Planning）（Planning）

Movement of people and goods

results）
results）（Actual（ActualSocial values✓Conserve the environment and biodiversity✓Social infrastructure network✓Revitalize the local economy✓Carbon neutrality✓Improve of people's well-being

Customer base

Human capital baseSocietal
Connections

Expand New Air Transport Demandby Societal Connection

JAL REPORT 2023

LCC

Cargo and Mail

Develop New Businesses that Expand
Societal Connection

Data Section

Expansion of aviation revenues
FSC（Planning）（Planning）

Societal Connection✓Safety and security

Air
Transportation

5

Sustainability

To Become the World’s
Most Preferred and Valued Airline Group,
Where Many People and Goods Freely
Move Around.

Growth Strategy

For details, please see the following pages.
p.9 Special Feature "Looking back on the COVID-19 pandemic"
p.11 Materiality

were causing considerable environmental impact. As the
COVID-19 pandemic brought travel to a standstill, as a social
infrastructure, I decided to make it my business mission tosolve these problems. [Figure 1]

The JAL Group Value Creation Story

Thank you very much for your continued support to JAL
Group. From May 2023, COVID-19 has been downgradedin the Infectious Diseases Control Law, bringing back thebright wonderful days. I am truly delighted to see the smilingfaces of our customers and workers at the airport and on
board our flights. We would like to express our deepest
gratitude again for the tremendous support and cooperation
we received from our stakeholders during the COVID-19
pandemic.
The outbreak of the COVID-19 pandemic in the early2020s brought about the disappearance of demand, an
unprecedented crisis that the airline industry had neverexperienced before. Amid the uncertainty of the future, wetook a step forward towards the post-COVID period byformulating our Medium-Term Management Plan in May
2021 in order to unite all employees and move forward. Witha great deal of their support, we had to feel our way throughthe darkness, our revenue recovered to pre-COVID levels lastyear. We were able to generate profits and pay dividends
for the first time in three years. Although it is necessary tocontinue to respond to global risks, including the Ukrainiansituation, the business performance of this fiscal year has
been on track due to the further acceleration of the pent-up
demand.We feel that our Medium Term Management Plan
is close to achieving the target of 1.85 trillion yen or morein sales and 185 billion yen or more in EBIT in the final fiscal
year of FY2025. The three-year battle against COVID-19 has
been a series of hardships and challenges, but I also feel thatthe lessons learned have been tremendous.

First, I realized the importance of preparing of all risks. We
were able to overcome this unprecedented crisis not only
because of the strong financial base we had accumulated
prior to COVID-19, but we also realized that this was notenough in terms of business continuity and employee
motivation. We are accelerating our business structurereform to build a more resilient and sustainable business
management system by diversifying our business beyond
just aviation.
Next, we reaffirmed the underlying strength of the humanresources gathered in the JAL Group. I saw that everyone
in JAL Group practiced JAL Philosophy under the slogan"What we can do now" by taking up challenges to develop
new businesses and services. Also 2,000 employees, whowere relocated outside the company received high praise
wherever they went and returned with great confidence.
I can now believe that we have an unlimited potential in
our staff. At the same time, I was keenly aware of myresponsibility to make better use of these human resource
capabilities.
The other realization was the deep relationship betweensocial issues and our business. Encountering the COVID-19
pandemic, a human crisis, increased my awareness ofglobal issues, including environmental problems. I also thinkthat restricting the movement of people affected people'sconnections, which expanded further to various social
problems. I felt responsible, as an airline operator, that we

Introduction

Looking Back on Three Years of the COVID-19 Pandemic

FeatureTurn non-aviation business into a new revenue source

Economic values

Mileage, Lifestyle, and InfrastructureTOP

JAL REPORT 2023

6

Chapter 1 Introduction

Messagefrom
Message fromJAL
CEOJAL GroupGroup CEO

Table of Contents/
The JAL Group Corporate Policy

For a Sustainable Air Transport

FSC

LCC

Balancing environmental measuresand network expansion

Cargo and Mail

Mileage, Lifestyle and Infrastructure

Creating connections between people and goods
Milage and Card

Travel and Retail

Ground Handling

Regional Solutions

Air Mobility

Figure 5 :JAL Style Human CapitalManagement

To Conclude: Work to Further Enhance
Corporate Value Based on Safety and Security
This year, exactly 120 years after the Wright brothers'
first flight, we believe that the reason the aviation industry
has grown through the numerous event risks is because
the safety of airplanes has improved dramatically andhas established as a social infrastructure. Now, as newtechnologies such as drones and eVTOL air mobility arebeing developed, and as we prepare to fly in EXPO 2025
OSAKA, KANSAI in 2025, it is of utmost importancethat they will be accepted by society as safe and secure
vehicles. Our mission has always been and always will be tocontribute to the progress and development of society by
flying safely and securely.
The JAL Group will fulfill its responsibilities as a social
infrastructure lifeline with a more resilient business structure.
We will grow into a corporate group that further enhances
the power of human resources and creates connections andrelationships among people through air transportation, while
thanking our customers who always warmly support us. We
will work together to become “the world's most preferredand valued airline group" for all stakeholders. We lookforward to your continued support.

Use of digital and new technologies

Diverse investments in human resources and education

Automation, labor-saving, and multi-functionality

Improving skills and organizational skills

Same output with fewer people

Growth of each individual

Increased productivity

Increased value creativity

Sustainability● Young people and their families, and inbound tourists● Development of simple services and new points● Transport of medical, pharmaceutical, andregional products● Cooperation with other transport modes and drone logistics

185 or above

EBIT (Billions of yen)

Approx. 50％ FSC plus Cargo and Mail

132
65

100

Data Section

For details, please see the following pages.
p.51 Business Model Reform

Creation of new flows of people● Introduction of fuel consumption and state-of-the-art aircraft● Cooperation with alliances, other transportation modes, andregional airlines■ JAL Style Human Capital Management
The population in Japan is declining, and the time has cometo reconsider how to operate conventional labor-intensive airservices. In addition to strengthening our ability to secure andnurture airline personnel, we need to increase productivity
and value creativity both individually and as a team.
It is thus essential to reform operations to achieve thesame output with fewer people by utilizing digital andnew technologies and promoting automation and multiskilling. The other important factor is diversity equity andinclusion (DEI). In our past efforts, there were many cases
where creating a work environment where diverse humanresources can play an active role and adding new educationand experiences to the people who work there have led tothe creation of novel ideas and new systems. This has led to
the growth of individual employees and organizations. There
are various regulations and restrictions on aviation, but if theenigmatic power of DEI can be used in workplaces such as
in airports and cabins, it will lead to a significant change inaviation. I would like to add that we are on track to achieve

30 percent of female managers, one of our managementtargets, by FY2025.
In order to further unleash the power of human resources,
which is the JAL Group's greatest strength, we will actively
invest in human resources such as wages, promotion, andeducation, while promoting human capital management
by enhancing productivity and value creativity through twopillars: technology and diversity. [Figure 5]

Growth Strategy■ Toward Carbon Neutrality in the Sky
We have been working to achieve carbon neutrality in Net
Zero CO2 Emissions by 2050 (NZE) as one of the mostimportant issues for the global environment. I, however, feelthat the importance of this is growing day by day. In Europe,a law to replace short-haul air routes with railways came into
effect, and the Japanese government's broad policy clearlystates the direction of carbon neutrality in the aviation sector.
One of the pillars of CO2 reduction is the renewal to fuelefficient aircrafts. In addition to the Airbus A350 and Boeing
787, which are our main fleets, we decided to introduce the
Boeing 737MAX in FY2026. In all the number of aircrafts*,
the share of these advanced fuel-efficient aircrafts is
expected to be more than 70 percent in FY2030, up fromabout 30 percent before the COVID-19 pandemic, and wewill continue to steadily promote aircraft renewal.
Another pillar is the use of sustainable aviation fuel or
SAF. SAF is a new fuel that can reduce CO2 emissions byapproximately 80 percent compared to conventional aviation
fuel. In FY2030, we plan to replace 10 percent of all onboard

fuel with SAF. Heretofore we have been procuring SAF fromoverseas as European and North American countries havebeen preceding Japan in the SAF production. Hereafter,
we will procure domestic SAF for use in Japan. If SAF
cannot be refueled at Japanese airports, overseas airlines
may find it difficult to continue flights to Japan. Thus SAF in
Japan is definitely essential to support our country's aviation
infrastructure. At present, we are rapidly developing andmanufacturing SAF in Japan in cooperation with suppliers
that provide various technologies and raw materials,
including the petroleum and plant industries.
*Passenger aircrafts with more than 100 seats

The JAL Group Value Creation Story

During the COVID-19 pandemic, the entire airline industry
lost substantial revenue, but at the same time, theimportance of air transport was acknowledged, such as
being able to meet people quickly and being able to go
anywhere. In order to make air transportation sustainable in
the future, we currently have two major management issues.
One is to realize carbon neutrality in air transportation, andthe other is to secure human resources in a society with adeclining population.

Connecting goods, people, and communities throughhigh-speed transportation

Figure 4 :Profit by Business Domain

Introduction

domains, we hope to achieve a business structure in whichapproximately half of our profits will be generated through
LCC and Mileage, Lifestyle, and Infrastructure in FY2025.
[Figure 3 and Figure 4]

and inbound passengers traveling around Japan. We also
want to develop new destinations that FSC cannot cover.
The Cargo and Mail business domain plays a role inconnecting goods and people, and regions through highspeed transportation that leverages the strengths ofaviation. In particular, we will focus on the transportation of
goods that are directly connected to people's lives, suchas e-commerce, medical products and pharmaceuticals,
and local specialties. We will also contribute to solving
logistics problems by linking with other transportation modes
and using new technologies such as drones. In order toreinforce the mobility required for such meticulous cargotransportation, we will introduce new midsize cargo aircrafts.
In addition to aviation, the Mileage, Lifestyle, andInfrastructure business domain will grow into a core businessfor creating connections between people and goods, taking
advantage of the JAL Group's strengths in customer base,human resource base and brand strength. We will particularly
focus on solution businesses that address serious local
problems such as the declining and aging population by
expanding the number of people engaged in nature, food,culture, medical care, education, and events. In the travelbusiness, we will propose and disseminate new forms oftravel, such as Adventure Tourism, that can create deeper
relationships with local communities.
In the Milage and Card and Retail business domains, we willoffer convenient and affordable products and services otherthan those offered by airlines. Our 37 million JAL Mileage
Bank members and four million JAL Card members can use
our services in many situations other than transportation.
We will also take on the challenge of stable ground handling
operations at regional airports, which are important for
attracting inbound demand and the regional economy, andthe development of new infrastructures, such as the DroneeVTOL, which will connect daily life and is useful for disastercountermeasures.
As we strive for growth in each of these four business

Figure 3 :Business Objectives Redefined toPromote ESG Strategy (by Domain)

FeatureApprox. 10％ LCC
Approx. 40％ Milage, Lifestyle, and Infrastructure

Beforethe COVID-19 pandemic *1

FY2023
FY2025（Plans）（Plans）*1 B
 efore the COVID-19 pandemic: FY2019 results excluding the impact of the novel coronavirus(Earnings forecast Value (IFRS) disclosed at the time of FY2019 Q3 financial results announcement)

7

JAL REPORT 2023

FY2022TOP

JAL REPORT 2023

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Table of Contents/
The JAL Group Corporate Policy

Chapter 1 Introduction

Message fromJAL Group CEO

FeatureFeatureSpecial Feature Looking Back on the COVID-19 Pandemic

Impact of COVID-19 on Aviation Business ～Trends in the Number of Newly Confirmed Cases and Quarterly Revenue～

COVID-19 has been repositioned as an infectious disease since May 2023 putting an end to the COVID-19
pandemic, which has been uncontrollable for roughly three and a half years. We can now look back and reflect on
the struggle we experienced over the COVID-19 pandemic and recognize its tremendous impact. We will use ourknowledge and experience gained through the pandemic to improve our resilience and enhance the sustainabilityof the JAL Group.
JAL Amabie JET planned and painted by our maintenance engineers

Initiated a Crisis Management System led by the President Immediately After the Outbreak■Enacted a BCP to Establish a Task Force to make Prompt Decisions
Task Force Meetings

150

6,000

100

4,000

50

2,000

Chair of Task Force (President)

In January 2020, in line with the spread of the virus in Asian countries, we launched a task force headed by the
President based on our Business Continuity Plan (BCP), under the emergence of an unknown virus spreading
an infectious disease. Thereafter, we have held weekly meetings in the task force headquarters until May 2023
to address issues with a sense of speed and determination such as the prevention of infections among ourcustomers and employees, our fleet plan, and improvement of the income and expenditure.

0

Secretariat (Senior Vice President of General Affairs Division)
Each Executive Officer

FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4
Int'l passenger (FSC) revenue
Domestic passenger (FSC) revenue
Cargo and mail business revenue
Number of newly confirmed cases (Source: Open Data from Ministry of Health, Labour, and Welfare)State of emergency

Vice Presidents of each department

0

The JAL Group Value Creation Story

152 times

Held(between January 2020 to May 2023)

Task Force System(1,000 people)
8,000

Introduction(Billions of yen)
200

Quasi-emergency measures *Both periods are in Tokyo.

① Protecting Customers - For Safety and Peace of Mind

■Promote a Wide Range of Initiatives not only to Prevent the Spread of Infection, but also to Ensure Safe Travel

For details of our efforts, please refer to "Safety and Peace of Mind" on p.48.

Improvement of Hygiene
and Cleanliness

JAL SMART AIRPORT automates check-ins and baggage check-ins. Touchless sensors are installedin the check-in computers, and QR orders are installed in the lounge. Anti-viral and anti-bacterial
coatings were applied in the cabin. We have worked to improve hygiene and cleanliness in order toensure safe use everywhere.

Communication with Customers

After verifying the air circulation in the aircraft using the Fugaku supercomputer, we made efforts to make the announcement objective andeasy to understand, such as asking people to wear masks. Due to the increase in inquiries about reservations and airline tickets, and theinconvenience caused by the difficulty in making telephone connections, we are working on opening new channels such as using the LINE
application and strengthening our contact center.

Providing Support During Travel

New support services were provided, such as the mobile app VeriFLY, which provides travel
documents for each country changing day by day, JAL Covid-19 Cover, which pays for medicalcare and other expenses in case of infection during travel, and PCR Anshin Support, which provides
access to PCR tests even on miles.

Compatibility of Stronger Quarantine
Systems and Convenience

To make the flow at the quarantine as smooth as possible, we worked with relevant authorities to address issues such as changing thepeople flow so that customers could receive enhanced measures at the border of Japan to stop the spread of infection. At Narita and Haneda
airports, the JAL Group's Airport Customer Service staff took charge of the quarantine support services and made use of their experience tostrengthen quarantine at the same time as providing convenience to customers.

The "Safety and Security Initiative" is the first in Asia toreceive a double award of the world's highest rating.

② Protecting the Route Network - To Meet the Social Demands for Transportation as an Infrastructure

Strict immigration restrictions in each country made it necessary to avoid overnight stays for our crew. Their work and flight schedule was advertently reconsidered. While inbound traffic halted, demand fortransit through Japan recovered quickly. Based on immigration regulation trends, we worked hard to capture the demand by forecasting the trend, flexibly adjusting manpower, and adjusting schedules tofacilitate transit. In June 2020, ZIPAIR began operating LCC flights exclusively for cargo during a period when passenger demand was significantly declining. In June 2021, Spring Japan (currently) became aconsolidated subsidiary to prepare for demand recovery.

③ Protecting the JAL Group- To Expand Our Customer Base by Maintaining and Strengthening Our Human Resources andFinancial Base in Preparation for a Pent-up DemandMonthly flight hours per cabin attendant< Before Corona > 71.8 hours/month (May 2019) ➡ [the COVID-19 pandemic] 8.3 hours/month (May 2020)■Human Capital: Maintaining and Strengthening Human Resources Base who can Transform to Face the Challenges in Creating New and Diverse Values

Training

Pre-corona
FY2018 70.8 hours/year
FY2019 72.3 hours/year

FY2020 277.1hours/year
FY2021 162.3 hours/year

With the use of an online conference system, we have advanced the acquisition of new knowledge and skills thatcannot be acquired through work alone.
[Training contents (one example)] Safety/Service/Language/Management Planning/financial results/Knowledge ofother types of work/Laws/Cross-cultural understanding/Information systems/Health management, and the like

Consolidated Employees
Voice

FY2019 to 35,653*Relocating extra human resources
Relocating extra human resources

1,801 a month

After confirming their intentions, including an open recruitment process, employees from the airport department,
including cabin attendants, were relocated to various fields to acquire new knowledge and values.
[Relocated areas (examples)] City Hall/Town Hall/car dealers/delivery distribution centers/ customer contact
centers/telecommunications companies/integrated construction companies, to name a few. About 140 companies➡

FY2022 end 36,039 *Including LCC and non-airline domains.

An Unusual Case Among LCCs- ZIPAIR Sets the Stage for Early Profitability by Launching Freight-only Flights

JAL REPORT 2023

< Before Corona > 41 flights/year (FY2018)➡ [the COVID-19 pandemic] Flight 12,934/year (FY2020)

Disruptions in shipping and a sharp decline in supply from passenger services led to tighter supply and demand, as well as new demand for vaccine shipments and home deliveries. In response to this, we expanded our capacity
to meet the demand by operating freight-only flights by ZIPAIR, a newly established LCC, and by utilizing freight-only aircraft from other companies. We were able to realize high-quality transportation utilizing our know-how.

■Financial Capital: Aglie Financing and Strong Financial Base/Aircraft Renewal for CO2 Reduction During the COVID-19 Pandemic(Before corona) About 300 billion yen/year ➡【 the COVID-19 pandemic 】Approx. ▼ 200 billion yen/year (FY2020)

Operating cash flows

Increase in Committed credit lines

Interest-bearing debt
Approx.

Public Offering

250 billion yen

460 billion yen＋

Approx.

(Maximum Amount during the Period)

180 billion yen

Hybrid Finance350 billion yen➡

Equity ratio
End of FY2022 39.3%(For Rating Evaluation)

To reduce cash outflows, we immediately and thoroughly reduced all costs throughout the company (p.21). As a financial response, we flexibly secured liquidity on hand in a short period of time while
recapitalizing our equity ratio, which indicates the soundness of our financial base, decreased from 57.4 percent at the end of FY2018, but remained at a sound level of 39.3 percent (based on the ratingassessment). We will continue to rebuild a strong and risk-tolerant financial base.

11

Introduction of Airbus A350
aircraft(FY2019 Q4 -FY2022)

6

Introduction of Boeing 787 aircraft(FY2019 Q4 -FY2022)

Despite the difficult financial situation, we quickly made the necessary investments to achieve post-COVID-19
pandemic recovery and further growth. In particular, the renewal to fuel-efficient aircraft has been carried out asplanned before the COVID-19 pandemic, which has led to a reduction in CO2 emissions and an improvement inpreferences and has ensured a production system that can respond to the rapid recovery of demand.

CO2 emissions ▼15 to 25% (compared to conventional models)

Voice

Funding Based on Decisions and Measures from Lessons Learnt from our Past Bankruptcy

Data Section

The COVID-19 pandemic occurred when Japan's first medium and long haul LCC-ZIPAIR was preparing to start operations. For this reason,
the Bangkok Line, which opened in June, and the Seoul Line, which opened in September 2020, launched as a freight-only flight. This was
unusual for an LCC as its business is to generate profits with high passenger boarding rates. Being a freight-only flight was considered when we
NISHIDA Shingo
wondered what we could do to help society at that time. ZIPAIR is now responding to the demand recovery period through a total of six routes (8President, Representative Director
routes as of August 2023), which operated during the COVID-19 pandemic. As a result, ZIPAIR achieved profits in FY2022.
ZIPAIR Tokyo

9

Freight-only flight*Financing from FY2019 Q4 to FY2022

External secondment

Pre-corona
0 per month

Cargo and Mail

Sustainability

Although the number of flights decreased significantly due to the sharp decline in the volume of operations, our top priority was to protect the employment of our human resources, the most important capital in the JAL
Group. We worked to maintain and improve the knowledge, skills, and motivation of our employees working in the frontline to be prepared for the pent-up demand when the COVID-19 pandemic subsided. In order to secure
employment, while retaining our dignity, our employees were relocated to other regions and companies. We also made use of the public support framework, such as employment adjustment subsidies, by providing training
programs to nurture our human resources. In addition, JALUX, a core non-airline subsidiary, helped expand our customer base. Going forward, regarding our human capital management, we will further enhance the potentialof employees who have developed skills through training and relocation. We will also promote corporate restructuring by shifting our human resources from FSC business to future growth areas.

We worked to maintain the network to fulfill our mission as a social infrastructure for the movement of medical workers to outlying islands and other areas. On the other hand, in response to the declarationof a state of emergency in environmental changes, we flexibly reviewed flight frequencies and our fleet plan in order to secure profitability.

Growth Strategy< Before Corona > 146.9 flights per day on 57 routes, 83.4% boarding rate (August 2019)➡ [the COVID-19 pandemic] 17.5 flights/day on 28 routes, 14.4% boarding rate (April 2020)

International Passengers< Before Corona > 860.3 flights per day on 126 routes, 78.9% boarding rate (August 2019)➡ [the COVID-19 pandemic] 437.0 flights/day on 115 routes, 19.6% boarding rate (April 2020)

Domestic Passengers

Around February 2020, when international flight demands were lapsing, we raised funds with interest bearing debt for one year after experiencing
flight demand after SARS returned in six months. However, we prepared for a prolonged risk impact for another year after the state of emergency
was declared. By taking advantage of our financial position, we devised an equity story that would satisfy investors and undertook a public offering.
KIKUYAMA HIdeki
From a management, perspective, it was absolutely unacceptable not to procure adequate funds when possible because of a change in environment
Senior Vice President of Finance and Accounting
and end up facing the risk of being short of funds. As the timing was feasible, we continued to procure funds through hybrid financing.
(As of FY2019 to FY2022)TOP

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Chapter 2 The JAL Group Value Creation Story

1. Reconceptualizing Social Issues

1.Understanding Social Issues●Reassessing and reacknowledging the challenges of the SDGs in the aviation industry fromSocial issues

FY2019 to FY2020●Reconceptualizing social issues in light of social changes following the COVID-19

Social change

pandemic

2.Important Analysis for the JAL GroupManagement discussed the
JAL Group's Value Creation

Opportunities

2. Important Analysis for the JAL Group●The JAL Group defines the business creation of social and economic values through airtransportation and societal connections●We evaluated the relevance of recognizing social issues with the creation of social andeconomic values through air transportation and societal connections in our business. The
rate of importance was assessed under the perspectives of how the business measures
for social issues connected to acquiring opportunities in aviation and non-aviation growthand how to reduce risk expenses due to environmental regulations

Risks

3. Important Analysis for Stakeholders

Dialogue with Stakeholders(p.25)

Degree of Interest

3. Importance Analysis for Stakeholders●Understand the level of interest and the level of expectations from stakeholders for the JAL

Degree of Expectation

Group to resolve and recognize social issues through dialogue with stakeholders (p.25)●Evaluate the importance of each stakeholder from the perspective of having a higher

overall level of interest and expectations

Materiality Specific Process
To identify materiality, we first reconsidered social issues in the post COVID-19 pandemic period. We then analyzed the important social issues for
the JAL Group and its stakeholders based on the social and economic values that the JAL Group creates through air transportation and societal
connections. The identification of materiality was reported and approved by the Board of Directors after extensive management discussions at
the Sustainability Promotion Council chaired by the President.
The identified materiality is reflected in the business strategy of Rolling Plan 2023 of the Medium-Term Management Plan. We also set anddisclosed metrics and targets for each materiality.

Identifying Materiality

Material Issues (Materiality)

Indicator of Social Values [FY2025 target]

Promoting economic growth and international mutual understanding through tourism●The Sustainability Promotion Council discussed and decided to identify social issues of

Setting Indicators and Targets

high importance as materiality based on analysis. This was reported and approved by the
Board of Directors●Set metrics and targets based on identified materiality and disclose performances●Regional Revitalization[+10% compared to domestic total passengers FY2019]
Management target●Inbound expansion[1,505,000 inbound tourists to Japan using domestic flights]

Regional Revitalization

Bring prosperity and vitality to the community●Expansion of regional product distribution[Domestic cargo volume +10% compared to FY2019]
Management target●Promotion of new tourism

Resilience throughDiversity

Build a diverse society in which people, cultures, values, and modes of behavior are respected
and new values are created

Safe and
Secure Society

Create, develop, and protect a safe infrastructure of the skies

Aviation Infrastructure

Pass on the basis of sustainable air transport to the future[JAL Wellness and Travel 10 Municipalities in partnership]●Promotion of research with outside parties[200 Workstyle Research Members]●Respect for human rights[Implementation rate of human rights due diligence 100%]●Barrier-Free and Stress-Free[2.5 times the FY2019 boarding rate for customers who find
it difficult to travel]●Building a foundation for next-generation air mobility[FY2023 drone logistics business, FY2025 eVTOL business]●Maintenance and expansion of aviation and logistics networks[More than 65 domestic entry points including code share]●Reduction of CO2 emissions

Precious Earth●Improving the ability to create social value

Human Capital

Enhance capacity for value creation and productivity of all JAL Group employees[Highly engaged employees percentage 64.4%]●Promotion of DEI[Ratio of women in management 30%] Management target

Goals of the Relevant SDGs

●Expansion of air travel and total passengers[+10% compared to domestic total passengers FY2019]
Management target[1,505,000 inbound tourists to Japan using domestic flights]●Increase in transportation of local products[Domestic cargo volume +10% compared to FY2019]
Management target●Increase in contracted number of flights[128,000 flights operated by customer airlines]●Increase in the number of partnership municipalities related to travel[JAL Wellness and Travel 10 Municipalities in Partnership]●Expansion of mile life service users[There are 810,000 Dokokani mile users Development ofsubscription-type travel products 250% compared to FY2022]●Expansion of air travel in total passengers[2.5 times the FY2019 boarding rate for customers who find it
difficult to travel]●Commercialization of air mobility services[FY2023 drone logistics business, FY2025 eVTOL business]●Air total passengers: Expansion of the number of travelers and cargo traffic[+10% compared to FY2019 in total passengers and cargo volume +10%
compared to FY2019 in Japan] Management target●Expansion of air travel in total passengers[+10% compared to domestic total passengers v.s. FY2019] Management target●Expansion of commerce[15 companies strengthen planning and sales of recycled products
in cooperation with companies outside the JAL Group]

Data Section

Preserve and restore the global environment, which serves as a source of people, sales anddistribution channels, and to pass it on to the next generation[Scope 1 Emissions < below 9.09 million t (FY2019)] Management target●Conservation of biodiversity [1,000 colonies of sexually reproducing corals by 2026]●Reduction of single-use plastics Management target[Cabin Lounge: Total elimination of new petroleum derived products][cargo and airport: 100% change to environmentally friendly materials]

Indicator of Economic Values [FY2025 target]

Sustainability

Fulfilled Hearts

Enhance happiness and cultivate affluent life through free movement and connection of goods
and people

Identifying Materiality

Reflected in Medium Term Management Plan

Growth Strategy

Tourism Nation

The JAL Group Value Creation Story

The JAL Group positioned its ESG strategy at the topmost of the JAL Group Medium-Term Management Plan
Rolling Plan 2023 and reviewed its materiality to create social and economic value and solve social issues
through air transportation and societal connections generated by its business.
To date, materiality has been identified as 22 issues in 4 areas in order to contribute to achieving the 17
goals/169 targets of the SDGs. This is mainly in the FSC business area. Through the materiality identification
process, we are reviewing materiality so that it is closely linked to the creation of economic value in all
business areas of the JAL Group, and not just in aviation. In addition, we define human resources (humancapital), which is the JAL Group’s greatest strength, as materiality because to improve the value creation andproductivity of all our employees is an important management issue.
The JAL Group aims to achieve medium- to long-term growth by creating a safe and secure society and asustainable future through our materiality initiatives.

Introduction

1. Materiality●Improving the ability to create economic value[+15% per capita sales v.s. FY2019]●Promoting DEI [Ratio of women in management 30%]Management target

Please see pp.85-88 for more information on "metrics and targets."

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Chapter 2 The JAL Group Value Creation Story

1. Materiality

2.2.JALValue
JAL Group'sGroup's Value
Creation
Story
Creation Story

3. JAL Group's Value
Creation Process

4. Foundations ofValue Creation

5. The Trails of Challenges

Introduction

2.JAL Group's Value Creation Story

Achieving JAL VISION 2030 and Carbon Neutrality

Our Purpose

FY2021 to 2025 Medium Term Management Plan

To become the world’s most
preferred and valued airline group,
where many people and goods
freely move aroundAchieve value creation through ESG strategies to achieve medium- to long-term growth
Rolling Plan 2023

❶ ESG Strategy pp.49-50

p.46

Airline Industry and JAL● Market conditions: Cost increases due to fueland foreign exchange market conditions● Human resources: Shortage of human resourcesin the aviation and tourism industries● Competitors: Delayed recovery of international
flight capacity

❸

E
S

G

Drive ESG Strategy

Rolling Plan 2022

Market● Passengers: Passengers originating overseas
show strong recovery, but those originating inJapan and domestic flights are still weak● Cargo: High levels of volume but unit prices aregradually falling

ESG Strategy

Business Model Reform: Increase the percentage of new areas to 50%

p.51

Assign human resources to growing business areas

JAL

Finance Strategy
JAL

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

pp.67-74

FY2021

Finance Strategy pp.77-80▼10％pp.75-76

100

Approx.50% Cargo and Mail

15

Approx.10% LCC

70

Approx.40% Infrastructure

FSC/

ESG investment 650 Bn JPY
JALDividend payout ratio of about 35% or more
Debt repayment approx. 300 Bn JPY

64.5 Bn JPY

100 Bn JPY

185Bn JPY

FY2022

FY2023

FY 2025(Plans)

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

FY2019

pp.65-66

GX Strategy:70 fuel-efficient aircraft/SAF procurement

Sustainability

Build a better future
where everyone canfeel fulfilled andhopefulMileage, Lifestyle, andFY2050Carbon Neutrality
p.90

Data Section

132Bn JPY●❹
Investment in Human resources and ESG

Implement management strategies with
ESG strategies as the core

DX Strategy: Creating new value in the CX/EX spaceJAL
Vision2030

Sustainability

Business Strategy

55

JAL REPORT 2023

Build a society
where everyone
can live safely,
securely and witha peace of mind

Use of Digital Technology

45

13

Safety andPeace of Mind

Business Strategy

Human Resources Strategy: Per capita sales: +15%

CO2 emissions

Pre COVID-19*2

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❷ Economic value

JAL

Society● Environment: Acceleration toward carbon
neutrality and conservation of biodiversity● Society: Low birthrate/aging population,
stagnant regional economies

EBIT*1❷ Social value

Long-Term Business Strategy
Topmost Strategy in Order to Realize Value Creation and Growth

Growth Strategy

Changes in theExternal Environment

The JAL Group Value Creation Story

The JAL Group has set forth the JAL Vision 2030, which aims to create a society of Safety and Peace of Mind and a Sustainable future for the purpose of our company, which is to create avibrant society and a future where many people and goods freely move around.
❶ In the 2021 to 2025 JAL Group Medium Term Management Plan Rolling Plan 2023, we reviewed the positioning of our ESG strategy and defined it as our top-level strategy.
❷ Through our ESG strategy, we will create social value in terms of air transportation and societal connections, realize JAL Vision 2030, and improve economic value.
❸ In the business strategy to promote the ESG strategy, the JAL Group will expand its earnings and achieve sustainable growth through business model reform, human resources strategy,
DX strategy, and GX strategy for carbon neutrality.
❹ The financial strategy underpinning the ESG strategy is to appropriately allocate cash generated by the enhancement of economic value to ESG-promoting investments, such as humanresources and shareholder return, among others, while maintaining both risk tolerance and growth.

*1 EBIT: Earnings Before Interest and Taxes*2 FY2019 results excluding the impact of COVID-19(FY2019 Q3 earnings forecast disclosed at the time of financial announcement (IFRS))(Plans)

FY 2030

FY2 0 5 0TOP

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Chapter 2 The JAL Group Value Creation Story

1. Materiality

2. JAL Group's Value
Creation Story

3.3.JALValue
JAL Group'sGroup's Value
Creation
Process
Creation Process

4. Foundations ofValue Creation

5. The Trails of Challenges

Solving Social Issues and Enhancing Sustainable Corporate ValueINPUT (key management resources)

Business Model (Business Activities)
Balancing environmental measures andnetwork expansion

Diverse and professional human resources● JAL Group Employees: 36,039 employees● 1,365 female managers (22.8% of all managers)● Highly engaged employees

FSCIntellectual capital

The JAL Group supports the movement of people and goods in the areas of FSC, LCC, and Cargo and Mail, andcreates societal connections through air transportation while maintaining safe operations, which is the foundationof our business. We aim to continuously increase corporate value by creating social and economic value throughthe movement and connection of people and goods, and by strengthening human capital and other capital.

OUTPUT（Movement and Connection of Goods and People）

Number of new cities and routes in service● Introduction of fuel-efficient and state-of-the-art equipment

RPK* 2● Cooperation with alliances, other transportation modes, and regional airlines

CO 2 emissions

Accumulated expertise

OUTCOME(Enhancement of Value and Capital Created through Air Transportation and Societal Connections)
Value created through air transportation and societal connections
Movement of people and goods✓Safety and security✓Conservation of environment and biodiversity✓ Social infrastructure network✓ Revitalize the local economy✓ Carbon neutrality✓ Improvement of people's well-being

Human resources that respect diverse values,
challenge new value creation, and drive change● Productive and professional JAL Group employees● Female managers 30% of all managers● Highly engaged employees 64.4%(+10pts compared to FY2019)● IT systems that achieve high quality in the aviation domain

Creation of new flows of people
LCC

Networks connecting regional areas in Japan with the world● Young generation, families, and inbound● Development of simple services and new location points● JAL Group Airlines and Affiliated Airlines● Collaboration with local communities

Social Value

Number of new cities and routes

Intellectual Capital
Know-how to improve CX and EX and create new values

Number of cities and routes in service● Regulations and manuals that protect the safety of new skies systems● IT systems that utilize AI and advanced technologies to realize DX

RPK* 2Customer baseCO 2 emissions

Air
Transportation

Customer base centered on aviation

Social CapitalSocietal
Connections

Human resource baseNetworks that enhance air transportation andsocietal connections● JAL Group Airlines and affiliated airlines● About 37 million JAL Mileage Bank members

Substantial aircraft

Cargo
and Mail● JAL Group number of aircraft: 8 models, 224 aircraft among

Connecting goods, people and communities throughhigh-speed transportation● Transport of medical/pharmaceutical/regional products● Cooperation with other transport modes and drone logistics

which, 11 aircraft were deployed in growth areas.
*1● New type of fuel efficient equipment 29%● Collaboration with local communities and business partners

Strategic item handling volume● JAL Mileage Bank Member

Natural capital

Creating connections between people and goods
Mileage
Lifestyle, andInfrastructure

Mileage and card

Travel and retail

Regional solutions
Air mobility● Aircraft fuel using fossil fuels● Tourism resource

Production capital (FY2025)
Aircraft to support growth by accelerating renewal of fuel-efficient equipment

CO 2 emissions

Number of travelers on tours● Number of JAL Group aircraft 9 types 232 to 238

Expand New Air Transport Demandby Societal Connections

Develop new businesses that
expand Societal Connections

Expansion of aviation revenues

Turn non-aviation business into new revenue sources

FSC

LCC

Cargo and Mail

22 to 26 equipment deployed in internal and growth areas● New type of fuel saving equipment 2 models 47%● Equity ratio of approximately 50% (for rating purposes)● Credit Rating A Flat

Natural Capital

Stakeholders

Precious Earth/Resource use with low environmental impact

Number of authorized foreign airline flights
Air mobility service

Financial Capital (FY2025)
Rebuild a strong financial base to enhance risk
tolerance and balance growth

Mileage, Lifestyle, and Infrastructure

Amount of retail transactions
Amount of regional solution transactions

Ground handling

Effective use of resources

Customers

Regional Next Generation/
Environment
Communities

Business
Partners● World below the 1.5°C scenario

External
Partners

Shareholders
andInvestors

Employees● Conservation, restoration, and expansion of environmental resources that are also tourism resources● Securing and using resources with low environmental impact

Sustainability*1 Passenger aircraft with 100 seats or more

Economic Value

Number of issued miles

Financial infrastructure with the necessary risk tolerance
during the COVID-19 pandemic● Maintain credit rating of A

Customer base spanning aviation and non-aviation areas

RTK* 3Financial capital● Capital adequacy ratio 39.3% (for rating purposes)

Partnerships working together to solve social issues

Number of cities and routes in service

Growth Strategy

Production capital

Capital enhancement
Human Capital (FY2025)

Societal Connections● Regulations and manuals to protect aviation safety

Social capital

The JAL Group Value Creation Story

Human capital

Introduction

3.JAL Group's Value Creation Process*2 Number of paid passengers x transport distance *3 Weight of paid cargo and mail x transport distanceStrengthening human capital andimproving capital efficiency

Business portfolio
International

Stability

Foundations of Value Creation
Safety Charter pp.17-19

JAL Philosophy p.20

Divisional Profitability Management System p.21

High

FSC

GrowthLCC

LCC

Governance pp.22-42

LCC

Price range

High

Data Section

Enter into the same routes to maximize shares

Domestic

Low
Short
Domestic Flights

Long
International Flights

Increase corporate Value
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Chapter 2 The JAL Group Value Creation Story

1. Materiality

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

3. JAL Group's Value
Creation Process(2) JAL Philosophy

4.4. FoundationsofFoundations of
Value
Value Creation
Creation(3) Divisional Profitability Management System

5. The Trails of Challenges(4) Governance■Implementation of the Safety Management System (PDCA cycle)(1) Safety Charter❶Gathering and dissemination of information▶Safety risk management❷Managing risks
In formulating safety measures for air transport and promoting

We gather a wide range of information from reports on unsafe

responses to accidents and troubles, we manage risk through the

behavior and acts, the flight data analysis program, crew fatigue

following steps.

and alcohol risk management program, and use it to prevent safety
events.

Identify hazard*

Safety Charter● 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.
 ny source of danger or potential danger that may cause or contribute to an aircraft accident,*A
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.

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

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

Monitor and review▶Education, training and safety awareness❶Initiatives based on the three actuals principle

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

Plan

Do

organizational processes that include safety policies, organizational structures, responsibility

Act

Check

addition, we conduct safety training for new employees, employees,

actual place), looking at aircraft debris and personal belongings of

who have worked for JAL for 10 years, and new managers.

To assure stable safety and quality standards, training and assessment
are conducted for pilots, maintenance engineers, cabin attendants,
Plan

Do

Plan

Do

Act

Check

Act

Check

Divisions

Corporate Safety and Security
Division

PDCA Cycle of the Safety Management System■Safety Management Structure●The President assumes final responsibility for safety.
●The Chief Safety Officer, appointed by the President, has overall
responsibility and authority for the safety management system,
and makes important management decisions including safetymeasures and safety investments.
For details on the safety management system, please visit the JAL website.
https://www.jal.com/en/safety/safety_system/#systemand 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 the safety management system and improvesafety standards.
▶Management review

Data Section

JAL REPORT 2023

from the depths of their minds by going to the accident site (the❸Training and assessment

Division and other divisions implement the PDCA cycle for safety, and organically link it across17

aim of creating awareness based on the basic premise of safety. In

experienced the accident (the actual people).

Charter, our fundamental safety policy, management, the Corporate Safety and SecurityWEB

Safety education is conducted every year for all employees with theJAL Group employees are educated on the importance of safety

victims (the actual objects), and listening to stories of those who

sharing, and methods of safety risk management. In accordance with the JAL Group Safety● As there are eight airlines in the JAL Group including Japan Airlines,
safety is managed under a common policy which was confirmed by
the Group Safety Enhancement Council in order to maintain uniform
and high safety levels throughout the JAL Group. In addition, theGroup Operational Safety Promotion Committee has been
established as a subcommittee of the Group Safety Enhancement
Council to maintain and strengthen safety cooperation between JAL
divisions and Group airlines.

❷Safety education

Sustainability

Safety Management System

Management

improvements are made.

Growth Strategy· 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.

organizations to ensure the safety management system functions properly and continuous

The JAL Group Value Creation Story

The Safety Charter demonstrates the JAL Group's determination, basic philosophy, and actions toward safety, which is thebasic premise for creating value as an airline. Every employee, from top management to front-line employees, implements
the Safety Charter on a daily basis.
The JAL Group places particular importance on the Safety Management System, which is an organizational safety
promotion mechanism for maintaining and improving aviation safety, and the Safety Culture, which is an organizational
culture for functioning the safety management system.

Introduction

4. Foundations of Value Creation

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

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Chapter 2 The JAL Group Value Creation Story

1. Materiality(1) Safety Charter

2. JAL Group's Value
Creation Story

3. JAL Group's Value
Creation Process(2) JAL Philosophy

4.4. FoundationsofFoundations of
Value
Value Creation
Creation(3) Divisional Profitability Management System

5. The Trails of Challenges(4) Governance▶Third-party assessment❶External audit
JAL regularly undergoes safety audits by MLIT and IATA Operational Safety Audit (IOSA), aninternational safety audit program to enhance safety management.

Safety Advisory Group: (left rear) Prof. HAGA,
Prof. KOMATSUBARA, (left front) Prof. HATAMURA,
Mr. YANAGIDA (Chair), and Prof. KAMATA

Introduction❷Advice and recommendations from the Safety Advisory GroupIn August 2005, the Safety Advisory Group was established comprising five external experts toprovide advice on safety issues. The members possess extensive knowledge and experiencein human factors, failure and defect analysis, organizational operation and culture, and safety,
and provide a wide range of objective advice and recommendations on safety from an expert’s
viewpoint, which we apply to the JAL Group management and safety operations.

(2) JAL Philosophy
The JAL Philosophy is a mindset, a set of values, and an attitude expected ofeveryone working on JAL services and products.
Each member of the JAL Group aims to achieve the JAL Group corporate policyof "Deliver unparalleled service to our customers and Increase corporate value
and contribute to the betterment of society" throughout the daily practice of JAL
Philosophy.
When JAL Group employees think and act autonomously, JAL Philosophy aligns
the vectors of all employees.

The JAL Group Value Creation Story

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

A culture of refining manuals

A culture of thinking fromthe “second to third person
perspective”

KAWASAKI Kinuka
JAL Infotech Co., Ltd. Service Business Division
Field Service Division

19

JAL REPORT 2023

Chapter 3 Accumulate Tedious Efforts with Passion
Work Earnestly
Accumulate Tedious Efforts
Work with Voluntary Attention

Chapter 4 Ability Will Improve
Ability Will Improve
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 a Keen Sense of Profitability
Maximize Revenues and Minimize Expenses
Elevate Our Cost-Consciousness
Pursue Profit Fairly
Manage the Company Based on Accurate Figures

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

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

■Initiatives to Practice the JAL Philosophy▶ JAL Philosophy workshop▶ Leaders workshop

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

All JAL Group employees participate in workshops three times a year withthe aim of providing the best service to customers and contributing to theadvancement of society through the study of JAL Philosophy. In FY2022, we
deepened our learning on the theme of what each individual should be aware of
in order to solve social issues through business activities. The aim is to becomea driving force for tomorrow by learning the value of our daily work throughdialogue and introspection with our peers.

In FY2022, six workshops were held annually for executives
and department heads and two sessions annually for
managers, with the aim of helping leaders improve theircharacter. Focusing on leadership that responds to thechanging times and building an organization that takes onchallenges, the JAL Group's leaders strive to compete witheach other in order to demonstrate the strength of the JAL
Group in human resources.

Renew one's desire for safety
Safety Seminar for New Employees
I climbed Mt. Osutaka for the first time and felt the tragedy of the accident firsthand by witnessing the accident
site. I was determined to maintain safe flight operations as a member of the JAL Group through this memorial
climbing, and I thought it was my mission to pass on the memory of Mt. Osutaka. In day-to-day operations, as an
IT engineer, I will always be aware of how systems support the safe operation of Japan Airlines, and I will work
quickly and sincerely to resolve problems and issues while valuing the voices of those on the ground.

Safety Seminar for New Managers
Through the training, I felt that with my relocation, my desire for safety, which is the basis of my thinking, became
stronger. When I visited the site again, I could vividly see the scenes of that time, and the words from the people
and the actual people resonated more deeply.
In addition, by interacting with people of the same generation in other occupations, the sense of camaraderie
increased, my own feelings were inspired, and my awareness of safety increased.

View of the event heldin June 2022

Online workshop

Voice
Data Section

IMURA Yu
Ryukyu Air Commuter Co., Ltd.
Chief Crew First Officer Group 2

The JAL Group is promoting communication and creating opportunities for employees to verbally share
information face-to-face. 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 in workplaces.

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 Unite Our Hearts
Make the Best Baton Pass
Align Mental Vectors“Workfloor” Management
Follow the Merit System

Fire Yourself Up
Strive for Perfection

Sustainability

Voice

The JAL Group aims to achieve sustainable growth and development by adapting to the rapidly changing
environment. As it is extremely 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 toensure smooth and prompt decision-making.

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

Growth Strategy

A communication culture

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 punished for human errors if the JAL Group deems thatthey occurred even though every precaution was taken. In this way, we have created an environment toencourage employees to report spontaneously without hesitation.

JAL Philosophy

JAL Philosophy and ESG Strategy
Last year, we focused on ESG strategies as the theme of the JAL Philosophy workshop, hoping to convey that our work basedon altruism has led to ESG strategies. Participants commented, "I found that the results of each person's daily work lead to
ESG strategy, and my motivation for work increased." It was a challenge to tackle a difficult subject, but I feel that thinking
through the common values of JAL Philosophy has enabled us to bring all employees together.
TAMURA Yuko
Work Philosophy DepartmentTOP

JAL REPORT 2023

20

Chapter 2 The JAL Group Value Creation Story

1. Materiality(1) Safety Charter

2. JAL Group's Value
Creation Story

3. JAL Group's Value
Creation Process(2) JAL Philosophy

4.4. FoundationsofFoundations of
Value
Value Creation
Creation(3) Divisional Profitability Management System

5. The Trails of Challenges(4) Governance(4) GovernanceThe divisional profibility system, based on our Amoeba Management, has advantages such as fostering
personnel with a sense of management, proactive business management, and the realization of Management
by All. All JAL Group employees work on figures involved in company management to maximize profits.
Along with the implementation of JAL Philosophy, we aim to realize our corporate philosophy by not only
maximizing profit in each division, but also pursuing optimal profits throughout the entire company.

Governance is positioned as the foundation for the JAL Group's value creation. Through the JAL Group
Code of Conduct, which all employees must adhere to, company-wide risk management, and corporate
governance, which exercises strong management oversight functions based on high managementtransparency, we will firmly establish aggressive and defensive governance and achieve sustainablegrowth.

JAL Vision
Medium-Term Management Plan

JAL Group Code of Conduct (Information Disclosure and Compliance)
The JAL Group Code of Conduct is a commitment
to society through which the JAL Group conducts
its business and is an action guideline that all
employees must adhere to in order to create value
sustainably through their daily work.
In addition to implementing the JAL Philosophy, allemployees will think and act in accordance with
the Code of Conduct, thereby fulfilling the promise
to society, such as solving social issues including
the SDGs.

JAL Group Corporate Policy

Divisional Profitability
Management System

JAL Philosophy■ Developing Human Resources that Contribute to Sustainable Development

JAL Group Code of Conduct

In the Amoeba system, the leaders of each organization are responsible for the income and expenditure of their own organization. They gain
managerial experience by formulating intentional organizational goals and engaging all members to achieve the goals. This initiative will produce

JAL Philosophy

managerial talent.

■ Realize Business Model Reform by Leveraging Strengths

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

Each month, we formulate earnings forecasts for the FSC, the LCC, and theWEB

Mileage, Lifestyle and Infrastructure businesses. Based on these forecasts, we
examine and implement measures to maximize earnings. At the Group performance
report meetings, which are attended by all executives, discussions will be repeatedbusiness. In addition to cost management, which was a major topic of discussion
during the COVID-19 pandemic, the focus of discussions will be to maximize
income based on changes in the current business environment. All participants
will share their insights toward achieving the annual earning goal and rebuilding
the business portfolio. By taking advantage of proactive management and theManagement by All, we will realize the growth of each business, thereby leading to
the sustainable growth of the JAL Group.

Contribution to Improve Income and Expenditure

Monthly departmental meetings in the frontline (Left: JAL Cargo Right: JAL Sky)JAL REPORT 2023

Initiatives based on the JAL Group Code of Conduct
We formulate and implement initiatives based on the JAL Group Code of Conduct, ranging from the business strategy of the medium-term management
plan with ESG strategy at the top to initiatives related to more universal governance. Specific initiatives for more universal governance include:① Information Disclosure and Dialogue■In order to continue to be a trusted company in society, the JAL Group strives to have better dialogue with a wide range of stakeholders and to enhanceand improve the quality of information disclosure, which is a prerequisite for dialogue.
■We strive to disclose information carefully and engage in constructive dialogue with shareholders, investors and other stakeholders.
■In order to disclose the JAL Group's corporate stance, we have posted a variety of information on our company website, including the JAL Report,

a consolidated report on finance and ESG, the JAL Group Safety Report, which summarizes our attitude and initiatives toward safety, as well as our
corporate philosophy, corporate information, safety and quality information, sustainability information, and IR information. We also disclose informationon our management plans and financial results in a timely, fair and appropriate manner. In addition, we will carry out dialogue to promote understanding
from a wide range of stakeholders and enhance corporate value.

■ Proactive Information Disclosure

Data Section

Divisional profitability initiatives exerted its authority during the COVID-19 pandemic. The leaders of each organization took the lead in formulating earning forecasts
based on the latest demand trends of each month, and appropriately managed costs in response to the sharp decline in income. In addition, these forecasts were sharedat departmental meetings where all members gathered, regardless ofjob title or years of employment, and all organizations considered andimplemented measures to improve income and expenditure, such asplanning new businesses utilizing the resources that we own. In thisway, each organization continued to take advantage of the strengthsof the system, and the JAL Group as a whole has improved its
income and expenditure.

https://www.jal.com/en/philosophy-vision/codeofconduct/

Sustainabilityon the income and expenditure forecasts and measures formulated by each21

1. Safety
2. Pursuit of customer satisfaction
3. Trust with stakeholders(1) Information disclosure and dialogue(2) Prohibiting insider trading
4. R espect for human rights and job satisfaction (human rights 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) R esponsibility 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) M anagement of personal information and intellectual property(6) E liminating relations with antisocial forces

Growth Strategy

Driving Force to Involve all Employees in Management

JAL Group Code of Conduct

The JAL Group Value Creation Story

Realization of the JAL Group
Corporate Philosophy

Introduction(3) Divisional Profitability Management System

The JAL Group is working to enhance the quality of information disclosure and emphasize two-way communication
so that stakeholders can understand the situation and business environment accurately and deeply. In recognitionof this proactive disclosure of information, we have been ranked number one in the transportation sector for the
fourth time in the past five years since 2018 by the Japan Securities Analysts Association as a "Disclosure Excellent Company".
In order to build better relationships with stakeholders, we will continue to actively disclose information and strengthen communication throughdialogue events and IR materials and strive to conduct IR activities with higher quality.

TOP

JAL REPORT 2023

22

Chapter 2 The JAL Group Value Creation Story

1. Materiality

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

4.4. FoundationsofFoundations of
Value
Value Creation
Creation

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

5. The Trails of Challenges(4) Governance③ Responsible Procurement■The JAL Group carries out fair business activities in order to remain a company trusted by society.

Introduction② Fair Business Practices■We will maintain fair and clear procurement and strive to co-exist and co-prosper with our suppliers by building a sustainable supply chain through thedissemination and compliance with the JAL Group Supplier Code of Conduct.

■Fair business practices will be ensured through compliance, anti-corruption, engagement in free and fair competition, management of personal■To this end, we will endeavor to respond in good faith and identify and resolve issues from the perspectives of legal compliance, global environmental

information and intellectual property, and measures against anti-social forces.
■To this end, we will raise awareness of compliance and conduct based on the Code of Conduct through the education for each employee. We will also

protection, respect for human rights, proper labor practices, and fair business practices.

establish a consultation desk and work to detect fraud as soon as possible.
■In particular, as we work to prevent corruption, we comply with laws and regulations and international treaties applicable to our respective countries andregions as part of our global business development, and we are working to strengthen controls on bribery and prevent money laundering.

■ ESG Initiatives - Supply Chain ESG Program The JAL Group's businesses, including air transportation, are supported by the supply chains of a wide variety of suppliers. Throughout this supply

The JAL Group Value Creation Story

chain, we operate a supply chain ESG program to identify and address significant risks and impacts from an ESG perspective.

■ Promotion System▶Main Initiatives of the Program

Compliance initiatives, including the promotion of fair business conduct, are reported at the Group Risk

The Supply Chain ESG Program assesses and supports suppliers according to the level of their ESG risks.

Management Meeting directly under the President, and the status of initiatives is supervised. In addition,

The JAL Group Supplier Code of Conduct is presented to all our suppliers to understand and comply with. To significant suppliers judged to be

we have established the JAL Group Compliance Network, consisting of executives from each JAL Groupat high risk, the JAL Group uses SAQ*1 of Sedex*2 or the responses from our company's own Self-Assessment Questionnaire (JAL questionnaire)company, to ensure thorough compliance across the Group.

to confirm the compliance status, business practices, human rights, and the environment, as well as business materials such as labor conditions,sector-specific characteristics, and ESG in countries and regions.

■ Enhancement of Employee Education

In addition to quality, price, and delivery dates, we will continue to evaluate sustainability through SAQ and other means and promote responsible

Since the establishment of the Code of Conduct in 2019, the JAL Group has been conducting training programs with the aim of improving the levelof awareness, understanding, and steady implementation. All employees attend a seminar on our Code of Conduct annually in October, known as
the Compliance Month. In FY2022, we aimed to further implement the Code of Conduct by sharing and discussing what we think is important foreach employee and how to implement the Code of Conduct and share their problems at work. After their training, we distribute a questionnaire to all
In addition to the above training, we are also working to further raise awareness of compliance by providing education by job level, including the bbreviation for Self Assessment Questionnaire.
*1 A*2 Established in the U.K. in 2004 this is a non-profit organization that provides a platform for managing and sharing corporate ethics information with the aim of realizing
responsible business practices in the supply chain.

■ Promotion System
Goal setting and progress review and risk management at Board of Directors.

executive level, and lobby in each workplace, including overseas departments.

 ompliance with JAL Group SupplierC
Code of Conduct in FY2022 (percentage by field)

Growth Strategy

participants and work to improve the curriculum every year based on their responses.

procurement activities to achieve the SDGs.

（％）
100
80

Purchasing activities based on compliance with the JAL Group Supplier Code of Conduct.

■ Development of Consultation Services for Employees

60
40

We have established internal and external reporting and consultation desks (24 hours, 365 days, Japanese/English) that can be used anonymously

20

Education of procurement personnel0by all JAL Group employees. In addition, each group company has its own consultation desk, and the JAL Group as a whole is conducting early
detection and correction of fraud. The number of internal reports in FY2022 was 170. In order to make the contact easily accessible to employees,
we will continue to disseminate information that makes it easy to understand where to present their report and provide internal education on thewhistleblowing system.

■

Items

Number of Events■ Consultation Services for Business Partners

The number of violations of the Code of Conduct (disciplinary actions)

Bribery or Corruption

0

In FY2022, we began operating the JAL Supplier Hotline, a window

in FY2022 is shown at right. When violations are discovered, we not

Discrimination0

for direct consultation from suppliers and their employees. We visited

only investigate them appropriately and take action, but we also strive toHarassment

6

several suppliers, who were thought to be at high risk from a humanprevent the recurrence of such cases by frequently sharing the reported

Customer Privacy

0cases, providing in-house education, and establishing a system toConflict of Interests

0

prevent violations.

Money Laundering or Insider Trading0

rights perspective, and conducted awareness campaigns for our
hotline. While giving maximum consideration to the privacy of callers,
we cooperate with suppliers to confirm compliance with the JAL
Supplier Code of Conduct and engage in dialogue to resolve theissues.

Efforts for further implementation

23

JAL REPORT 2023

FY2019FY2020Understand andpractice(Individuals)

Key Performance Indicators (KPI)

PeriodBy

TargetAchievement（FY23）

Monitoring completion rate of primary
suppliers

FY2023

FY2023

100%

100%

Soundness confirmation rate ofprimary suppliers

FY2023

FY2023100%

100%

Auditing rate of suppliers requiringaudit

FY2023

FY2023100%

N/A

Consultation response rate

Each year

Each year

100%

100%

Training rate of procurement staff

Each year

Each year

100%

100%

FY2021 and onwards

Topic
Established anddisseminated(individuals)

Metrics and Targets

Practice and introduce(individuals andorganizations)

Data Section

Since its establishment in 2019, we have been working on a step-by-stepprocess to steadily implement the system by spreading the word and promoting
understanding. Since FY2021, each employee has been reflecting on the Codeof Conduct once again, sharing and discussing their own problems at work,
which they believe is an important practice for further application.

■

Sustainability■ Number of Violations of the Code of Conduct
in FY2022■

CDP Supplier Engagement Assessment

In the Supplier Engagement Assessment conducted by CDP, an international environmental non-profit organization, JAL was the
only airline in Japan to receive an "A," the highest rating given to the top eight percent from approximately 18,700 companies
Climate Change "A-" Assessment
in Japan and overseas. There after JAL was certified as a Supplier Engagement Leader.

TOP

JAL REPORT 2023

24

Chapter 2 The JAL Group Value Creation Story

2. JAL Group's Value
Creation Story

1. Materiality(1) Safety Charter(2) JAL Philosophy(3) Divisional Profitability Management System

5. The Trails of Challenges(4) GovernanceDialogues with Stakeholders

To realize our corporate policy, the JAL Group established a Multi-Stakeholder Policy based on the belief that
it is important to create value co-creation with diverse stakeholders such as shareholders, employees,
business partners, customers, creditors, and local communities.
Awareness and advice for improvement gained through constructive dialogue with a wide range ofstakeholders around the company are used to continuously enhance corporate value.
For information on our multi-stakeholder policy, please visit the JAL website.
https://www.jal.com/ja/sustainability/governance/fair-business-practices/pdf/multistakeholder_ja.pdf?230315*Japanese only

■For All Employees to Work Together to Create Value

Round table meeting between employees and management

For more examples, visit the JAL website.
WEB

Shareholders
andInvestors

Business Partners■Communication to Improve the Soundness of the Supply Chain

Following FY2021, we invited Mr. SHIMOTAYA Takeshi (photo), the founder of The Global Alliancefor Sustainable Supply Chain, who has expert knowledge on human rights in the supply chain,to hold a dialogue with the board members of the Sustainability Promotion Committee. In this
dialogue, he gave us valuable advice on the involvement of farmers and other producers in the
supply chain, as well as factory workers, and the progress of our company's efforts from a global
perspective. Based on the advice we received, we included the identification and conductionof on-site audits to suppliers that are closely tied to our company and highly important from an
ESG perspective, to one of our human rights due diligence efforts for FY2023. The JAL Groupwill continue to engage in dialogue with society and continue to address issues and make
improvements based on the belief that respect for human rights is a universal value.

As a member of the oneworld Alliance, JAL works with its allies to promote various measures to improve customer convenience and realize
sustainability through regular and subcommittee meetings. Going forward, JAL will be loading SAF, which is a joint procurement that has been
under discussion with member companies. Together with oneworld member companies, we will strive to realize new values and improve thequality of our services.
For details, refer to "SAF Procurement Overseas" on p.96

order to further promote ESG management by grasping the latest social trends andincorporating the knowledge of experts into our strategies, we held a dialogue withexecutives and Professor KANIE Norichika, a leading expert in SDGs research and aprofessor at Keio University Graduate School, regarding the process of formulating the
Medium-Term Management Plan Rolling Plan.
As aviation is an indispensable social infrastructure, Professor KANIE pointed out theequipment, and inflight meals, through the implementation of the Sustainable Model
Flight. In addition, flying to the area and actually feeling it through the five senses not
only brings joy and enjoyment to people, but also provides a valuable indication thatthe airline industry plays a great role in building a more resilient society and promoting

Shareholders and Investors■Strengthening Communication with Individual Shareholders and Investors
We strive to disclose information by posting management-related information such as our
corporate philosophy, management strategies, management plans, and results on our website
and by sending IR-related information in a timely manner through IR Mail. In addition, as a meansof strengthening two-way communications, we conducted new initiatives at the General Meeting
Hangar tour for shareholdersof Shareholders held in June 2023, such as livestreaming from the opening to the closing of themeeting and answering all questions received in advance. In addition, as a means to deepen
understanding of the JAL Group, we conducted tours of the JAL plant and held online briefings for shareholders living far away. We will continue
to work to further enhance and improve the quality of information disclosure and achieve better dialogue with shareholders and investors.

■Interacting with Institutional Investors through Interviews and Events

Data Section

significance and importance of challenging the future of flight, such as fuel, onboard

Sustainability

https://www.jal.com/ja/sustainability/human/satisfaction/customer*Japanese only

The midterm year between the enactment and achievement of SDGs is 2023. In

JAL REPORT 2023

External Partners■Conduct Regular Meetings and Subcommittees with Alliance Members■Becoming a Part of Building a Diverse and Resilient Society

25

Business Partners

External Partners

Community, Next Generation/Environment

diversity in society as a whole.

Next Generation/
Environment

Growth Strategy

Examples of Improvements in the Last Year
Based on customer feedback, [W ith sign language
interpretation and subtitle] Safety video - for your own safety- was produced.

■Creating Customer Value through Dialogue with Customers

JAL Sustainability Advisor Sustainable Flight Navigator
Professor KANIE Norichika of Keio University Graduate School (center)
SAITO Yuji, Corporate Planning Division (left)
AOKI Noriyuki, General Affairs Division (right)

Regional
Communities■Dialogue on Human Rights in the Supply Chain

Customers
Customer feedback is reported to the Board of Directors on a monthly basis. In
addition, through company-wide consultations at the management level, we confirm
how to solve problems and examine countermeasures. In addition, we are working
to develop new products and improve our services based on customer satisfaction
surveys after boarding our flights and the feedback received at the contact desk. The
JAL Group will continue to take customer feedback seriously and strive to improve its
services.

Customers

Our suppliers were requested to comply with the JAL Group Supplier Code of Conduct in order to raise the level of the entire supply chain fromthe perspective of ESG management. In addition to daily business meetings, participants from 39 significant suppliers participated in the briefing
session in FY2022 to publicize the JAL Group's ESG initiatives (such as CO2 reduction) and the JAL Supplier Hotline, established in FY2022.
Moreover we strive to improve our suppliers' understanding of ESG/SDGs through visits to supplier plants.

Employees
In order for all employees to work together to improve corporate value throughsustainable value creation, we are rapidly sharing accurate information and promoting
direct communication between management and employees. In order to ensure aproper understanding of the JAL Group's management strategy and status, our top
management distributes not only internal newsletters but also instructional videos on
the Medium Term Management Plan and quarterly financial results. In addition, regularbriefings by the President are available to our worldwide employees. Furthermore, wehold round-table meetings between the President and employees at various branches,
including overseas offices, to directly communicate with each other about safety, otherworkplace initiatives, and issues.

Employees

The JAL Group Value Creation Story

WEB

Stakeholders

Introduction

Special Feature

4.4. FoundationsofFoundations of
Value
Value Creation
Creation

3. JAL Group's Value
Creation Process

In addition to individual meetings, we actively engage in dialogue with institutional investors through a variety of IR events held throughout the year.
We have also resumed face-to-face events, striving to engage in interactive, polite dialogue with our stakeholders. We regularly provide feedback
to the Board of Directors and key departments concerned on the valuable opinions and comments obtained at these events, to reflect in ourmanagement.
Please see the following pages for details.
pp.77-80 Financial Strategies
p.110 Main Evaluations from Outside PartiesTOP

JAL REPORT 2023

26

Chapter 2 The JAL Group Value Creation Story

2. JAL Group's Value
Creation Story

1. Materiality(1) Safety Charter

4.4. FoundationsofFoundations of
Value
Value Creation
Creation

3. JAL Group's Value
Creation Process(2) JAL Philosophy

5. The Trails of Challenges(3) Divisional Profitability Management System(4) Governance■ The JAL Group defines risk as an event or action that interferes with the achievement of an organization's mission, objectives and goals. We haveestablished a company-wide risk management system and have selected priority risks in order to achieve sustainable growth and create social andcorporate value through our business, as well as to minimize the damage caused when risks occur, and to achieve early resolution and recovery.
■ We will strengthen our business continuity management (BCM) for unknown viral infections, large-scale IT failures, and the anticipated Tokyo

Metropolitan Earthquake. In addition, we will strengthen information security measures, including cybersecurity measures.
For information on business risks, please visit the JAL website.

The Group Risk Management Committee, chaired by the President, has been established to comprehensively manage the risks of the JAL Groupand stabilize management.
The meeting will discuss basic policies for risk management, countermeasures for priority risks identified through risk research and assessment, andBCM. In addition, a separate committee dedicated to financial and information security risks has been established at the lower end to provide moredetailed and frequent responses. We have established a multi-layered risk governance system, in which responses to priority risks determined at themeeting are reported to the Board of Directors and further measures are discussed as necessary.
Risks related to aviation safety are discussed at the Group Safety Committee, and risks related to sustainability in general, such as the environmentand human rights, are discussed at the Sustainability Promotion Committee.
For information on priority risks, please visit the JAL website.

Board of Directors

WEB

PresidentGroup Safety Enhancement Council

https://www.jal.com/en/sustainability/governance/
riskmanagement/#thinking

Reporting of priority risks

Reporting of priority risks

Chair: PresidentGroup Operational Safety
Promotion Committee

Risk Management andInformation Security Committee

Financial Risk Committee

Sustainability Promotion
Committee

Chair: Senior Vice President of
Safety Promotion Division

Chair: Senior Vice President ofGeneral Affairs Division

Chair: Senior Vice President of
Accounting Division

Chair: Senior Vice President ofGeneral Affairs Division

Aviation Safety

Corporate Risk Operation Risk(i) Implementation of the risk management cycle(ii) Enhancement of BCM

27

JAL REPORT 2023

1
2

Changes in the business environment
domestically and internationally

Progress management,
residual risk assessment(includes review, training, auditing, etc.)

Overseasregional
headquarters

Division A
Dept.
A-1

Confirm the mission, goals,
and targets of eachorganization

Entire JAL Group

6
Responserisks

Level III

Dept.
A-2

Group
airlineGroupcompany

3
Identify risks

54Clarify priority risks

Update the risk map

In March 2020, we received a DBJ BCM rated loan fromthe Development Bank of Japan (DBJ), and the rating
results commended Japan Airlines for “particularly
advanced business continuity initiatives.”

Response the command office・A Command Office chaired by the President (or Executive Vice
President) is set up and normal operations system quickly shifts tothe crisis management system.

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 dataof customers entrusted, by disclosing on our website, information oncompliance with laws and internal rules, our management system,
safety measures, education, awareness raising activities, cooperation
with subcontractors, accident handling measures and our help desk.

JAL Group Information Security Measures
People and Organizations

・Establishment of CISO and internal
committees
・Establishment of 24 hour monitoring system
・Collaboration with external ISAC
・Security training for all employees

Policies and Rules

・Basic Policy on Information Security in
the JAL Group・Development of internal rules

https://www.jal.com/en/sustainability/governance/riskmanagement/
information-security/

Technical measures

・Measures against cyber incidents suchas information leakage and unauthorizedaccess・ISO27001 certification for IT
infrastructure organizations■ Information Security

By establishing a Risk Management and Information Security
Committee to manage and promote personal information andinformation security, we aim to reduce corporate risks such as
information leaks in preparation for sophisticated and complex
external cyber-attacks.
Under the leadership of our Senior Vice President of the IT Planning
Department, also known as the Chief Information Security Officer(CISO), we are working to further improve our information security
management system by being members of Transportation ISAC
Japan*1 and Aviation ISAC*2 and by obtaining certification fromassociations that are under the jurisdiction of ISA27001, a global
standard for information security and infrastructure.

As an important public transportation infrastructure provider, wetake measures against cyber incidents such as information leaks
and unauthorized access in accordance with the guidelines set by
the Ministry of Land, Infrastructure, Transport and Tourism (MLIT).
Our internal efforts include regular e-Learning security training for
all employees, the establishment of a CSIRT system, and various
training programs to prevent cyber incidents and respond promptly
when they occur. In addition, as a measure to strengthen security
during telework, we have built a system that fully encrypts terminal
communications outside the company and constantly monitors them.
In cooperation with the outside world, specialized agencies monitor
threats 24 hours a day, 365 days a year, and conduct periodic audits.

 rganizations that promote activities contributing to the improvement of the*1 O
collective defense capabilities of transportation and transportation business
operators
 lobal information sharing organization consisting of airlines, aircraft*2 G
manufacturers, among others

Voice

NISHIMOTO Yuka
Security Strategy Dept.
Security Supervision Group

Contribute to Fostering a Security Culture
In 2022, JAL acquired ISO27001 certification for the division that is responsible for the system infrastructure of the entire JAL
Group. In order to expand the scope of certification, we are currently developing the necessary documents for ISMS* while
involving members of other departments and other groups. I am motivated by the feeling that we are building a security culture
one step at a time.
I also find it rewarding that the results are tangible and directly linked to the company's reputation. In fact, in the external
evaluation that evaluates corporate sustainability from an ESG point of view, whether or not a company has obtained ISO27001
certification is an evaluation item, so I feel that I can contribute to the evaluation of the company, which is a driving force for
my work.

Data Section

In order to fulfill our mission as a public transportation system that plays a role insocial infrastructure, we are promoting BCM and building a system that enables
us to carry out operations appropriately in times of emergency. In the event of an
unknown viral infection, major IT failure, or an earthquake directly beneath Tokyo,
we have established individual BCPs to protect the safety of our customers,
employees, family members, and related personnel. We have also established basic
policies and systems necessary for the continuation of the JAL Group's important
air transport services, including reservation and information services, and payment
and settlement services. In order to continue to improve the effectiveness andeffectiveness of the BCP, we conduct regular training, utilizing the knowledge ofexternal experts, and revise the BCP from time to time. The JAL Group's business
continuity capabilities have been highly evaluated by rating agencies.

We implement the risk management cycle regularly so thateach organization can achieve their targets.
7

・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.

■ Basic Policy■ Management System

Overall sustainability(Environment, Human Rights, among others)

Response the special committee

Sustainability

The JAL Group defines risk as "an event or action that threatens the achievementof the mission, purpose or target of an individual or an organization," mandating
all organization leaders to manage their own risks as the risk officer.
In implementing preventive risk management, risk officers conduct risk
assessments twice a year to identify prioritized risks and take risk measures. (Risk)
Control Self-Assessment, is provided the organization at stake to reassess andimprove risk responses through a workshop style self-assessment and provides
risk consulting, as needed.

Level II(iv) Information security measures

WEB

Please visit the following pages for details.
Aviation Safety Risk Management: p.17 Safety Management System, p.31 Meeting directly under the President
Sustainability Management: General Sustainability, p.84, Environmental Management, p.89

② Efforts

・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.

For more information about the JAL Group's Basic Policy on
Information Security, visit our company website

Sustainability
Promotion Council

Board Chair: President

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 impedingflight safety and security, a natural disaster, pandemic, and other risks
to air transport.
In recent years, in response to BCP activation on the outbreak andspread of COVID-19 and on safety and security risks in certain
regions and airspace due to the Ukraine-Russian situation, we haveestablished a task force to gather and analyze information andtake appropriate action. We also conduct drills regularly and enricheducation and training to raise staff awareness of crisis management.

Response by the person responsible for handling the risk

Growth Strategy

Board Chair:
PresidentGroup Risk
Management Council

Level lThe JAL Group Value Creation Story

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

WEB① Risk Management Structure(iii) Development of crisis management system

Introduction

Risk Management*Information Security Management System: How Information Security is Managed

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JAL REPORT 2023

28

Chapter 2 The JAL Group Value Creation Story

1. Materiality

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

3. JAL Group's Value
Creation Process(2) JAL Philosophy

4.4. FoundationsofFoundations of
Value
Value Creation
Creation(3) Divisional Profitability Management System

5. The Trails of Challenges(4) GovernanceCorporate Governance*

A person to whom none of the following Independence Standards apply shall be judged to be independent and outside officers, who do not qualify as being highly
independent, will not be nominated as outside directors or outside audit and supervisory board members. In addition, individuals, who concurrently serve as directors or audit& supervisory board members at more than four listed companies other than the company, will not be nominated.

Basic views on corporate governanceIndependence Standards for Outside Officers

As a leading safety company in the transportation field, the JAL Group will provide the best service to its customers while maintaining
safe operations, which is the basic premise of its existence. In addition to fulfilling our economic responsibility to provide good
products and earn appropriate profits through fair competition, we are conducting business with the view that we are a corporategroup that fulfills its responsibilities and contributes as a member of society. Based on this, we have established the JAL Philosophy
under our Corporate Philosophy and promptly make appropriate management decisions. At the same time, we strive to enhance
corporate value and fulfill our accountability by establishing a corporate governance system that demonstrates strong management
oversight functions under high management transparency.

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

The JAL Group Value Creation Story

1. An individual who has executed business* of the Company and the Company’s consolidated subsidiaries at present or in the past 10 years.
2. An individual who corresponded to any of the below items a. to f. in the past three years.
a. A business counterpart or a person who executed business of such business counterpart, whose transactions with the Company for one business year exceeded
one percent of consolidated revenue of or the business counterpart.
b. A major shareholder or a person executing business of such shareholder having an equity ratio of five percent or more in the Company.
c. A major lender of borrowings of the Company or a person executing business of such lender.
d. An individual receiving contributions of over 10 million yen a year from the Company or a person belonging to an organization receiving such contributions.
e. An individual receiving remuneration of over 10 million yen excluding Director’s remuneration from the Company or a person belonging to an organization
receiving remuneration exceeding one percent of consolidated revenue of the Company.
f. In case a person executing business of the Company is assigned as Outside Director of another company, the person executing business of such other company.
3. The spouse or relative within second degree of kinship of individuals corresponding to 1 and 2.

For details of the Fundamental Policies of Corporate Governance and the Corporate Governance Report, please visit the JAL website.
WEB

Introduction

Independence of Outside Officers

In order to achieve sustainable growth and increase social and economic value, the JAL Group undertakes strong managementtransparency.
We have established a corporate governance system that provides management oversight functions.

*A person executing business refers to an Executive Director or Executive Officer.

① Corporate Governance System
Board of Directors｜ Held 18 meetings in FY2022

Corporate Governance System
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 one Observer

Advisory・
Recommendation

Board of Directors
Three of the nine are Outside Directors.
Audit

Nominating Committee

Appointment・Dismissal
Instruction

Three of the five members are
Outside Directors.

Compensation Committee

Advisory・
Recommendation

Supervision・Instruction・Transfer of Authority

President

Executive Officers

29

JAL REPORT 2023

ReportReport・Collaboration

Audit Department

Collaboration

Personnel Committee ｜ Held three meetings in FY2022
The Company discusses matters to be consulted by the Board of Directors
regarding the appointment and dismissal of executive officers and reports
the results to the Board of Directors. In FY2022, in addition to the mattersto be reported to the Board of Directors, we discussed the development ofcandidates for executive officers and the new execution system.

Councils andCommittees, etc.*1

Officers Disciplinary Committee
Three of the five members are
Outside Directors.

Departments and Subsidiaries
Executive Management Council

Audit

In accordance with the annual audit plan established by the Audit
Department based on the results of the risk analysis, we conduct
audits focusing on risks that may hinder the achievement of JAL
Vision 2030, such as the risk of serious losses, the effectivenessand efficiency of operations, the reliability of financial reporting,compliance with laws and regulations, and asset preservation. As
for the reliability of financial reporting, we evaluate the internal
control reporting system for financial reporting under the Financial
Instruments and Exchange Act as an independent organization under
the direct control of the President.

Audit and Supervisory Board ｜ Held 15 meetings in FY2022
The Audit and Supervisory Board makes appropriate judgements from an independent
objective standpoint, based on their fiduciary responsibilities to the shareholders, whenfulfilling their role and responsibilities such as auditing the execution of the Director’s
duties, appointing or removing accounting auditors, and executing rights concerning
auditor remuneration.

Data Section

Decides disciplinary action of Directors and Executive Officers.

Instruction

Financial Audit

Compensation Committee ｜ Held four meetings in FY2022
The Compensation Committee discusses matters concerning the amount ofcompensation for Directors, Executive Officers and Corporate Auditors based on an
inquiry from the Board of Directors and reports back to the Board. In addition, thecommittee reviews the remuneration system as appropriate to ensure that it provides
sound incentives for sustainable growth.
In FY2022, we discussed specific indicators and evaluation methods for the executive
compensation system to promote the medium-term management plan more strongly,
and submitted a report to the Board of Directors.

Internal Audit
Supervision*Please refer to p.31 for the Executive Committee directly under the President.

Officers Disciplinary Committee ｜ Not held in FY2022

Collaboration

Instruction・ReportPersonnel Committee
Three of the five members are
Outside Directors.

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

Decision of
Proposals regarding
Appointment/
Dismissal
Accounting Auditor

Sustainability

Corporate Governance Committee ｜ Held twice in FY2021

Instruction・Transfer ofAuthority

Audit & Supervisory Board

Appointment・Dismissal

Appointment・Dismissal

Three of the five members are
Outside Directors.

Checks whether business activities comply with the JAL Group Fundamental
Policies of Corporate Governance, conducts analysis and assessment
to determine whether they will contribute to sustainable growth andenhancement of corporate value over the medium- to long-term, andprovides necessary feedback and recommendations to the Board of
Directors.
To assess the effectiveness of the Board of Directors, from the previous
year, we have been proposing an expansion of the scope of interviews to
all Directors and Corporate Auditors because the assessment has been
conducted through a questionnaire only for External Director. Furthermore,
a number of recommendations were made as a topic to be addressed in
the future such as promoting a new DX strategy and the need for further
operational ingenuity.

When submitting a proposal to the General Meeting of Shareholders concerning theappointment of candidates to the positions of Director and Corporate Auditor, theNominating Committee will comprehensive judgment of the personality, knowledge,
ability, experience and performance, and the like, of the candidate based on an inquiry
from the Board of Directors and will report back to the Board.

Internal

Growth Strategy

The Board of Directors exercises strong management monitoring with ahigh 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,①The Board separates the management monitoring and business executionfunctions. The Board Chair is nominated from among Directors who do notconcurrently serve as Outside Officer.
②At least three highly independent candidates are nominated for Outside
Director, and from the Ordinary General Meeting of Shareholders in June
2021, Outside Directors account for at least one-third of all Board members.
③In FY2021, we decided to increase female Director appointments.
④From fiscal 2021, Directors and Audit and Supervisory Board Members
are required to basically attend at least 80% of all Board meetings.
⑤The Board transfers appropriate authority to the President to ensure
efficient decision-making.

Nominating Committee ｜ Held nine meetings in FY2022
OutsideAccounting Audit
Accounting audits are conducted by KPMG AZSA LLC at our request, according to audits
required under the Companies Act and the Financial Instruments and Exchange Act. In
addition to periodic audits, accounting issues such as the establishment, amendment
and abolition of laws, regulations and rules are checked as necessary to achieve
appropriate accounting work.

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JAL REPORT 2023

30

Chapter 2 The JAL Group Value Creation Story

1. Materiality

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

3. JAL Group's Value
Creation Process(2) JAL Philosophy

4.4. FoundationsofFoundations of
Value
Value Creation
Creation(3) Divisional Profitability Management System

5. The Trails of Challenges(4) Governance■ Support for Directors and Audit and Supervisory Board Members

The Board of Directors transfers appropriate authority to the President in order to make efficient decisions.

Legal considerations are explained to the 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 in external training and affiliatedorganizations.
In addition to the provision of corporate information, Audit and Supervisory Board Members are given opportunities to participate in external
training and external organizations.
In order to deepen their understanding of the Company, we provide Outside Directors, Outside Auditors, and Supervisory Board Members withsafety education including a memorial climb of Mt. Osutaka, a visit to the Safety Promotion Center, and visits to frontlines. We also provide
advance briefings on agenda items as necessary and opportunities and materials to explain other matters at their request.

PresidentGroup Safety
Enhancement Council

Group Risk
Management Council
Risk Management andInformation Security
Committee

Customer Value
Creation Council

Sustainability Promotion
Committee

JAL Philosophy
CouncilGroup Business Performance
Reporting Meeting

Customer Experience
Promotion Committee

Financial Risk
Committee

Group Management
Council

JAL Wellness Promotion
Committee

Investment Monitoring
Committee▶Sustainability Promotion Council｜Held three meetings in FY2022
The Sustainability Promotion Council reviews progress management of

JAL Group for the purpose of contributing to appropriate and flexible

important issues and annual targets, management of risks anddecision-making by the Board of Directors and the President. The

opportunities of climate change, the environmental management

committee will deliberate over important issues requiring a resolution ofsystem, and human rights due diligence in order to promote ESG

the Board of Directors and matters requiring approval by the President

management for achieving the SDGs, build a better future wherethat need to be confirmed by the Executive Management Council

everyone can feel fulfilled and hopeful as stated in JAL Vision, andbefore presenting these issues to the Board or to the President

work with society to achieve sustainable development.

Main activities in FY2022: Discussed important management issues to

Main activities in FY2022: Disclosure of information on TCFD, DJSI

be submitted to the Board of Directors.

evaluation results and review, summary of ESG evaluation,
reorganization of important issues, initiatives based on changes in the▶Group Safety Enhancement Council｜Held 12 meetings in FY2022

external environment and social requirements, addition and revision of

To secure flight safety and promote safety management of the entire

targets, among others, were discussed and reported to the Board of

JAL Group, the Group Safety Enhancement Council makes decisions

Directors twice in FY2022.

on important safety management policies, confirms the status of andProgress in Strengthening Corporate Governance
Ahead of the establishment of the Corporate Governance Code, we established in FY2012 voluntary committees for nomination and remuneration, among others,
as a company with an Audit and Supervisory Board, and have actively made efforts to improve board effectiveness to strengthen governance in accordance with the
Corporate Governance Code.
In FY2022, we established a system whereby the Audit Department reports directly to the Board of Directors in addition to the Board of Corporate Auditors (Dual
Reporting Line). At the June 2023 Annual General Meeting of Shareholders, we established a system with multiple female directors.

2012
Trends in the Corporate
Governance Code, etc.
Institutional design
as a company
with an Audit andSupervisory Board
Strengthening
supervisory functions

Composition of
Directors
Chair of the Boardof Directors▶Customer Value Creation Council ｜ Established in June 2023

to be taken concerning safety in daily operations, among others,

Aiming at resolving important issues related to customer value for all

according to the JAL Group Corporate Policy and company policies tocustomers and society, the initiatives, and communications of eachsecure flight safety and promote safety management of the entire JAL

business with customer value as the starting point will be monitored.

Group.

Discussions will take place to reach decisions that will resolve theMajor Activities in FY2022: In addition to understanding the JAL

issues.

Compliance with the
Corporate Governance Code

we discussed how to respond to aviation accidents and other▶JAL Philosophy Council ｜ Held one meeting in FY2022

Improving board
effectivenessincidents during the fiscal year under review. In the event of an air

The JAL Philosophy Council establishes the fundamental policy, andaccident, the the JAL Group will promptly report the incident to thedraws up, enforces, and manages progress of measures to promote

Board of Directors.

penetration of the JAL Philosophy.

▶Group Risk Management Council｜Held two meetings in FY2022▶Group Business Performance Reporting Meeting ｜ Held 12Group's overall aviation safety policy and safety management system,

To conduct overall risk management and achieve stable JAL Group

2018

2021

★2018 Revised the Corporate
Governance Code★2015 Established the Corporate
Governance Code2023

★2021 Revised the Corporate
Governance Code■FY2012・Established committees relating to nomination, officer remuneration, etc. chaired by an Outside Director■FY2021・Outside Audit and Supervisory Board Members joined
the Corporate Governance Committee as observers■FY2017
・Introduced a new officer remuneration system to share interests with shareholders
・Created a succession plan for the President, etc.
■FY2012・Independent Outside Directors (2)■FY2021・Outside Directors shall accountfor 1/3 of the directors.
■FY2016
・Increased the number of Outside Directors from 2 to 3 ・Documented the establishment■FY2023of a system with multiple female ・Two or more female■FY2014
directors
・To be chaired by a non-executive
directors
director■FY2021■FY2017・Compliance with all principles of the (revised) Corporate
・Compliance with all principles of theGovernance CodeCorporate Governance Code■FY2018
・Compliance with all principles of the (revised) Corporate■FY2022
Governance Code■FY2015
・Established a dual reporting line
・Started Board Effectiveness Assessment
whereby the Audit Department reports
directly to the Board of Directors■FY2017
・Commenced Board Effectiveness Assessment using a third party■FY2019・Strengthened the risk management meeting bodySustainability

regularly reviews the Safety Management System, and decides actions

2015

Growth Strategy▶Executive Management Council ｜ Held 35 meetings in FY2022
The Executive Management Council is an organ established by the

The JAL Group Value Creation Story

Group Operational
Safety Promotion
Committee

Sustainability
Promotion Council

Executive Management Council

Introduction■Management Committees directly under the President*Trends since its listing on the First Section of the Tokyo Stock Exchange in September 2012 are presented.

meetings in FY2022

management, the Risk Management Council establishes the

The Group Business Performance Reporting Meetings are aimed at

fundamental policy on risk management, conducts regular risk

sharing earnings of each Group company and each division in the JAL

assessment, establishes countermeasures, and manages businessGroup and considering ways to improve business performance.

31

Main activities in FY2022: Review of priority risks, status of response▶Group Management Council ｜ Held 26 meetings in FY2022

to priority risks, and discussion on priority issues such as cyber

The Group Management Council conducts deliberation to checksecurity and response to the anticipated Tokyo Metropolitan

progress of important management issues facing the JAL Group andEarthquake. In FY2022, we reported to the Board of Directors twice inestablish measures to address these issues, and reports information of

total.

significant importance.

JAL REPORT 2023

Data Section

continuity, among others.

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JAL REPORT 2023

32

Chapter 2 The JAL Group Value Creation Story

1. Materiality

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

4.4. FoundationsofFoundations of
Value
Value Creation
Creation

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

5. The Trails of Challenges(4) Governance(i) Board of Directors

Introduction② Management Structure(as of August 1, 2023)

AKASAKA Yuji (January 3, 1962/61 years old/male)

SHIMIZU Shinichiro (December 13, 1962/60 years old/male)

Director, Chairperson

Representative Director, President

Representative Director, Executive Vice President

After joining the Company, Mr. UEKI acquired insight related tosafety operations, among others, and on-the-job experience as aflight crew at an extremely high level. He has taken control ofdeveloping and executing the Medium Term Management Plan,
exercising strong leadership and decision-making skills, as
Representative Director and Presidentand, since 2012.
Furthermore, he has continued to contribute to the strengthening of
the supervisory function of the Board of Directors serving as
Chairman of the Board of Directors and a member of the Corporate
Governance Committee since 2018.

After joining the Company, Mr. AKASAKA engaged mainly inEngineering and Maintenance Division, and acquired on-the-job
experience and insight related to safety operations, among others, at
an extremely high level as well as significant knowledge and extensive
connections in the airline engineering and maintenance industry. He
has strengthened the foundation for safety operations, exercisingstrong leadership and decision-making skills, as Representative
Director, President of JAL ENGINEERING CO., LTD., since 2014. In
addition, as being Representative Director and President of the JAL
Group since 2018, he has worked to uphold in the JAL Group thatflight safety is the foundation of the JAL Group and by “Lead by
Example” through his own practicing of JAL Philosophy he has aimed
to greatly contribute to the realization of JAL’s corporate philosophy
with all employees.

After joining the JAL Group, Mr. SHIMIZU successively engaged inpersonnel and labor affairs related to flight crews and cabin
attendants, among others, and other divisions, and realized material
achievements, exercising great leadership and strong planning andcoordination capabilities. Having served as Senior Vice President of
the Human Resources Division since 2013 and Senior Director of theSecretary’s Office since 2016, he has contributed considerably to
improving and stabilizing the JAL Group’s external presence byjudging the situation which the JAL Group is in from a higher
perspective. Since 2020, he has been assisting the President as
Representative Director, Executive Vice President, and considerably
contributing to further strengthening and enhancement of the
management structure.

SAITO Yuji (September 26 1964/58 years old/male)

TSUTSUMI Tadayuki (December 19, 1960/62 years old/male)

Representative Director, Senior Managing Executive Officer

Director, Senior Managing Executive OfficeDirector, Senior Managing Executive Office

After joining the Company, Ms. TOTTORI gained a high level of insightand field experience in safe flight operations and service through her
career as a cabin attendant and through her work with Corporate Safety& Security. Since 2020, she has demonstrated outstanding leadershipas Senior Vice President, Cabin Attendants Division in balancing humanresource development and employee motivation under the challenging
management environment of the COVID-19 pandemic, making asignificant contribution to maintaining safe operations. From 2023, she
has contributed to improving the quality we provide to our customers as
Senior Vice President, Customer Experience Division, helping to maintainand improve the quality of our services.

After joining the Company, Mr. SAITO has held positions inInternational Passenger Sales and the Corporate Planning Office,where he has proven his ability to exercise precise analysis andgood judgment. After assuming the position of Executive Officer in
2019, he was appointed as Senior Vice President, Corporate
Control Division. In 2021, he was appointed as Senior Vice
President, Corporate Planning Division and Senior Vice President,
Corporate Control Division, and since 2023, he has been
undertaking the position of Senior Vice President, Corporate
Planning Division and Chief Financial Officer of the JAL Group,
during which time he has provided a broad and objective view of theGroup’s management and made a significant contribution to ourearly return to profitability amid a challenging business environment.

After joining the Company, Mr. TSUTSUMI acquired insight related tosafety operations, among others, and on-the-job experience as a flightcrew at an extremely high level. As Executive Officer and Senior Vice
President, Flight Operations Division since 2019, Senior Vice President,
Corporate Safety & Security Division since 2020, and Director since2021, he has greatly contributed to supporting flight safety with hisstrong sense of responsibility and sense of ethics.

Growth Strategy

UEKI Yoshiharu (September 16, 1952/70 years old/male)

TOTTORI Mitsuko (December 31, 1964/58 years old/female)

KOBAYASHI Eizo (January 7, 1949/74 years old/male)

The qualifications required of the President and other leaders 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 foundation of business continuity for the JAL Group.
They must also display initiative in practicing the JAL Philosophy.
The Nomination Committee continuously discusses candidates for the position of President, among others, and provides the candidates with practical and diverse
experience, such as management experience at group companies, expatriate experience, and activities at outside organizations, so that they can acquire thenecessary background for management at an early stage.
With regard to the development of the next generation of executives, including executive officers, the Human Resources Committee holds practical discussions on
setting career paths, rotating across departments, forming external networks, and pooling human resources in order to promote diversity and expand capabilities andperspectives.

Mr. KOBAYASHI has extensive experience in global management
and leadership over multifaceted group companies and deep
insight into management as a member of top management of ageneral trading company that develops businesses around theworld. With such experience and insight, he gives advice to theCompany’s management and appropriately supervises theperformance of duties from practical and diversified perspectives,and if he is elected, the Company expects that he will continue tofulfil those duties.

Attendance (FY 2021)*

Tenure (year)

Attendance of Board meetings

11

412

100%

(18/18)

〇

5

124

100%

(18/18)〇〇Chairperson

〇

〇

〇

〇

〇

Representative Director, President

AKASAKA Yuji

Representative Director, Executive

SHIMIZU Shinichiro

5

47

100%

(18/18)TOTTORI Mitsuko

new post

5——

SAITO Yuji

new post

11

—

—

2

10

100%

(18/18)Outside Director, Japan Airport Terminal Co., Ltd.*TSUTSUMI Tadayuki
KOBAYASHI Eizo

Outside Director, Japan Exchange Group, Inc.

Independent Outside Director

YANAGI Hiroyuki

Independent Outside Director

MITSUYA Yuko

Outside Director, AGC Inc. Independent Non-executive Director,
Kirin Holdings Company Limited Mitsubishi Electric* Outside Director
Outside Director (Audit and Supervisory Committee Member), ENEOS Holdings, Inc. Outside
Director, Denso Corporation* Representative Director, SORA Representative Director, Japan
Basketball Association Vice President of the Japan Olympic Committee

Ms. MITSUYA has gained extensive experience and broad insight as acorporate manager, as well as a wealth of experience and practicalknowledge in human resource development, and we expect her tofulfill these roles after her appointment.

Nominating
Committee

Compensation
Committee

Officers Disciplinary
Personnel Committee
Committee

Management
Experience

Finance & Accounting

Legal/Risk
Management

Personal Affairs/
Safety Management
Talent Development

〇

〇

〇

〇
〇

〇
〇

Global Experience

CX Marketing

DX/IT/Technologies

GX/Environment
〇

〇
〇

〇

〇

〇

〇

〇

〇

〇

〇

Data Section

Name

Representative Director, Senior
Managing Executive Officer
Director and Senior Managing
Executive Officer
Director and Managing Executive
OfficerIndependent Outside Director(Lead Independent Outside Director)

Important positions concurrently held ( is a public company)

Corporate GovernanceCommittee

UEKI Yoshiharu

Mr. YANAGI has deep insight and extensive experience as a member of
top management in a company pushing ahead with international
expansion. With such insight and experience, he gives advice to theCompany’s management and appropriately supervises the performanceof duties from practical and diversified perspectives, and if he is elected,
the Company expects that he will continue to fulfil those duties.

Skills Matrix

Attendance rate ofBoard meetings

Position

MITSUYA Yuko (July 29, 1958/65 years old/female)
Independent Outside Director

Appointment of Committee Members

Number of Company
shares held (100 shares)

Director, Chairperson

YANAGI Hiroyuki (November 20, 1954/68 years old/male)
Independent Outside Director

Sustainability■ Succession Plans for the Presidents and Other Leaders

Independent Outside Director (Lead Independent
Outside Director)■List of Directors

The JAL Group Value Creation Story

Directors are selected from those with extensive experience in various fields and high insight and expertise, paying attention to ensuring diversity in terms of gender,international nature, work history, and age, among others. We also aim to have more than one female director from FY2021. In addition to the previous one outside
director, we have now appointed one in-house director to realize a system with multiple female directors. The JAL Group will explain legal considerations and othermatters to the directors and will ensure that the directors are fully aware of their duties, including the duty of loyalty and the duty of care to good offices, andprovide opportunities for outside training and continuous participation in external organizations. The term of office of directors shall be one year to clarify
management responsibilities for each fiscal year.
Outside Directors are elected from three or more suitable independent candidates and comprise at least one third of the Board of Directors. In accordance with ourcompany's "Independence Standards" for Outside Officers, The JAL Group will not appoint outside directors who are unable to secure substantial independence
or who concurrently serve as directors of more than four listed companies in addition to our company. Furthermore, one of the Outside Directors will be appointed
as the Lead Independent Outside Director to strengthen cooperation with Audit and Supervisory Board Members and internal divisions.

〇
〇

8

92

100%

(18/18)Chairperson〇

Chairperson

〇

〇

〇

〇

〇

2

40

100%

(18/18)〇Chairperson〇〇

Chairperson

〇

〇

〇

new post

—­

—

—

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

*Number of stocks based on the shareholder list as of March 31, 2023.

33

JAL REPORT 2023

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JAL REPORT 2023

34

Chapter 2 The JAL Group Value Creation Story

1. Materiality

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

3. JAL Group's Value
Creation Process(2) JAL Philosophy

4.4. FoundationsofFoundations of
Value
Value Creation
Creation(3) Divisional Profitability Management System

5. The Trails of Challenges(4) Governance③ Officer Remuneration

In addition to attending meetings of the Board of Directors and other important meetings, the Audit and Supervisory Board Members audit important matters related to corporate andbusiness operations and the status of business execution by inspecting important Kessai documents. In addition, together with Corporate Auditors Office staff, they conduct annual
audits of each business site and subsidiary, and report the results to the Representative Director. In addition, they will strive to exchange information with the Internal Audit Division and
the Accounting Auditor. They will also hold regular meetings with our subsidiaries, Audit and Supervisory Board Members, to enhance and strengthen auditing throughout the Group.
our company provides company information to Audit and Supervisory Board Members. In addition, they provide external training opportunities and continuous participation in externalorganizations for internal Audit and Supervisory Board Members.
Outside Audit and Supervisory Board Members appoint persons with extensive knowledge and experience in a variety of fields. In accordance with our Outside Director's"Independence Standards" established by our Company, will not appoint persons who are unable to secure substantial independence. Furthermore, a person who concurrently holds
more than four listed companies other than our company will not be appointed as an Outside Audit and Supervisory Board Member. Outside Audit and Supervisory Board Members,
together with other Audit and Supervisory Board Member companies, will work with the Internal Audit Division and the Accounting Auditor to ensure the soundness of management byconducting audits from a more neutral and objective perspective.

■Policy on the Decision of Officer’s Remuneration▶Total amount of remuneration, among others①Total amount of money in remuneration, and the like: not more than
700 million yen per year [of which, the total amount of fixed basic
remuneration is no more than 350 million yen (of which the total
amount of outside directors is no more than 50 million yen) andthe total amount of performance-linked bonuses is no more than
350 million yen]*Maximum amount to be paid in: Money to be paid in: Performance of applicable period in the execution of duties in which
remuneration receivables are used as consideration
Our company Stock Exchange for three months before and after the expiration of the evaluation period (six months in total)
the highest closing price of the common stock▶Basic Policy

KIKUYAMA Hideki (March 19, 1960/63 years old/male)

Audit and Supervisory Board Member

Audit and Supervisory Board Member

Since joining the the JAL Group, Mr. KITADA has worked mainly inmaintenance including maintenance technology and quality assurance.
Serving as Executive Officer of Engineering and Maintenance from 2018,he supervised the maintenance division of the JAL Group and contributed
significantly to maintaining and improving engineering and quality. Since
June 2020, as Managing Executive Officer of Engineering and
Maintenance, he has provided precise comments at Board meetings andother meetings from the perspective of maintaining flight safety based on
his extensive frontline experience in engineering and quality assurance.

After joining the the JAL Group, Mr. KIKUYAMA worked primarily in generaladministrative roles in, for example, the IT Planning Department, Human
Resources Department, and Labor Relations Department, as well as serving
as the Vice President of the General Affairs Department, the Americas Office,and Vice President of the Corporate Planning Office. After assuming theposition of Executive Officer in 2010, he has been contributing significantly tomaximizing route profits as Senior Vice President of Managing Division RouteMarketing Division since 2013. Since 2019, serving as the Senior Vice
President of the Finance & Accounting Division, he has worked to provide
highly transparent information disclosure and exercised proper management
decisions and decision-making skills that benefit the interests of shareholders.

KAMO Osamu (March 25, 1947/76 years old)
Outside Audit and Supervisory Board Member/
Independent Director

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

② We will establish appropriate ratios for performance-linked
bonuses based on business performance. For the purpose offurther promoting the alignment of interests of shareholders,establish appropriate ratios for performance-linked shared based
remuneration linked to corporate value in accordance withmedium- to long-term performance, in order to contribute to
demonstrating sound entrepreneur dynamics.
③ We will provide remunerations that are appropriate to our top
management in accordance with our business performance.
▶Remuneration Levels and Remuneration Composition Ratios

KUBO Shinsuke (June 22, 1960/67 years old)

OKADA Joji (October 10, 1951/71 years old)

Since joining Sanwa & Co. Tokyo Marunouchi Office (currently Deloitte
Touche Tohmatsu LLC), Mr. KUBO has gained a wealth of experience,achievements, and deep insight into accounting through experience incorporate audits, share listings, corporate revitalization, M&A and othercases.

Mr. OKADA 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 and Supervisory
Board Member of a general trading company and Chair of the Japan Audit
and Supervisory Board Members Association, he has gained a goodunderstanding of governance and auditing including risk management.

Outside Audit and Supervisory Board Member/
Independent Director■List of Audit and Supervisory Board Members
Name

Audit and Supervisory Board Member

KITADA Yuichi

Audit and Supervisory Board Member

35

Important positions concurrently held (*is a public company)

KIKUYAMA Hideki

Standard for achieving a target of 100%0％
Basic remuneration
50％

Tenure(year)

Number of Company
shares held (100 shares)

Board Attendance

2

15

100%

Number of Board of Attendance rate of Audit and Attendance of Audit andDirectors Attendance Supervisory Board meetings Supervisory Board meetings(18/18)100%

new post

18

KAMO Osamu

7

100

100%

(18/18)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.

5

63

100%

(18/18)100%（15/15）

Outside Audit and Supervisory Board
Member/Independent Director

OKADA Joji

Outside Director, NEC Corporation
Outside Director, Nippon Exchange Self-Regulation Organization

3

40

100%

(18/18)100%（15/15）

JAL REPORT 2023

—

80％

100％

Skill Matrix

〇

〇
〇

—

〇
〇

observer

〇
〇

〇
〇

〇

〇

〇

〇

〇

〇

〇

(assuming 100 at the timeof achievement of theperformance target)

Performanceindicators andpercentages〇〇〇

The amount paid varies by 0 to 150

The number of shares to be paid fluctuatesby 0 to 150*2

0％

25％
EBIT

（50％）

Performance
evaluation period

50％

75％

100％ 0％Individual Performance Evaluation*3

（20％）

25％
TSR*4

（30％）

（25％）

50％
ROIC*5（25％）

One year

75％
ESG*6

（25％）

100％
CO2*7

（25％）

Three years
Financial goal

Non-financial goal

*1 The Chairperson, President, among others, do not set "individual performance evaluation indicators for each officer," butevaluate them using "EBIT". Considering the progress in achieving the targets for flight safety.
*2 The final business year of Medium-Term Management Plan fluctuates between 0 to 200, adjusted according to theachievement of the targets.
*3 Individual indicators for each officer*4 TSR: Valuation based on the comparison between our company's total shareholder yield and TOPIX yield including
dividends*5 Valuation based on consolidated ROIC
*6 Rating based on the number of selected representative ESG issues (DJSI World Index, FTSE Blossom Japan Index, APEXWORLD CLASS, CDP A-, MSCI WIN)
*7 Evaluation based on CO2 emissions per ton-kilometer charged■Procedures for Remuneration Decision

Matters concerning the remuneration of the directors shall be decided
by the Board of Directors after deliberation and report to theCompensation Committee, which is voluntarily established by ourcompany. The majority of the members of the Compensation
Committee shall be outside directors, and the chair shall be selectedfrom outside directors.
The fixed basic remuneration is paid monthly, and performance-linked
bonus and performance-linked stock remuneration are paid once a year.

■Reasons why the Board of Directors has determined that the
remuneration for individuals should conform to the policy
With regard to the remuneration, and the like for individuals, theCompensation Committee, which is chaired by an outside director andis attended by a majority of the members, held discussions based on
the above-mentioned Policy on the Decision of Officer’s Remuneration.
Decisions were made at our Board of Directors meeting held on
February 17, 2022 with due respect for the deliberations and reports.
Therefore, the company judged that the contents of remuneration, andthe like, for individuals in FY2022 are in line with the above policy
stipulated by our company.

■Payment of remuneration to Directors andAudit and Supervisory Board Members (FY2022)

Performance-linked stock
remuneration
20％

Corporate Governance Management Finance & Legal/Risk Human Resource and Human Safety
GlobalDX/IT/GX/CX Marketing
Committee
Experience Accounting Management Resource Development Management Experience
Technologies Environment（15/15）

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

Outside Audit and Supervisory Board
Member/Independent Director

Linked to financial or non-financial targets

Performance-linked bonus
30％

Appointment ofCommittee Members

Attendance (FY2022)

Fixed remuneration

50％

Performance-linked Renumeration

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

Position

Number ofpeopleTotal remuneration, etc.
(1 million yen)

Director

9

406

250

122

32

(including Outside Director)

(3)

(34)

(34)

(ー)

(ー)

Basic
remuneration

Performancelinked
bonus

Performancelinked
share-based remuneration

Audit and Supervisory Board Member

5

77

77

ー

ー

(including Outside Audit andSupervisory Board Member)

(3)

(28)

(28)

ー

ー

Total

14

484

328

122

32

Data Section

Position*The amount shall be the amount excluding the allowance in the case where Executive Officers concurrently serve as a
Director and the allowance in the case where he has the right of representation.

Outside Audit and Supervisory Board Member/
Independent Director

Performance-linked Bonus*1
Fluctuation range

Sustainability① We will set appropriate remuneration levels with reference to thebusiness environment and objective remuneration data in themarketplace.
② Taking into account the nature of our company's business and theeffectiveness of performance-linked remuneration, the ratios of (A)the amount of fixed basic remuneration*, (B) the amount of
performance-linked bonus to be paid based on the degree ofachievement of the target, and (C) the amount of performancelinked stock remuneration to be delivered based on the degree ofachievement of the target are set as follows (The following
percentages are indicative and fluctuate in response to changes instock prices, and the like).

Performance-linked bonuses and performance-linked stock
remuneration performance indicators are reviewed as appropriate in
response to changes in the business environment and the roles of each
executive. In FY2022, we reviewed performance-linked bonuses andperformance-linked stock remuneration performance indicators in orderto more vigorously promote ESG, business and financial strategies,
which are the three pillars of the Medium-Term Management Plan's
management strategy.
Performance-linked shares of remuneration commencing in FY2019,
FY2020, and FY2021 will be uniformly not paid based on performance.

Growth Strategy

KITADA Yuichi*(June 22, 1960/63 years old)

① To achieve sustainable and steady growth and increase corporate
value over the medium- to long-term, we promote businessexecution in accordance with the Corporate Policy andmanagement strategies, and strongly motivate Directors toachieve specific management targets.

■Framework for Performance-linked Remuneration

The JAL Group Value Creation Story② Total amount of remuneration receivables, and the like perperformance evaluation period of remuneration (meaning the mostrecent three consecutive fiscal years ended): 1. Maximum numberof shares to be issued per performance evaluation period (100,000
shares) multiplied by the maximum amount to be paid in per share*

Introduction(ii) Audit and Supervisory Board Member (as of August 1, 2023)*1 Performance-linked bonuses and performance-linked stocks remuneration, and the like, represent the amounts recorded as
expenses in the relevant fiscal year.
*2 The total amount of remuneration, and the like, for directors does not include salaries for employees who concurrently serve
as a Director.
*3 The total amount of remuneration of the Audit and Supervisory Board Members is "no more than 100 million yen per annum"(resolution of the Extraordinary General Meeting of Shareholders held on July 10, 2012). Remuneration for Audit andSupervisory Board Members is only fixed remuneration (monthly remuneration) from an independent standpoint, and thedecision is made through consultation of Audit and Supervisory Board Members. The number of Audit and Supervisory
Board Members at the conclusion of so the General Meeting of Shareholders was five (including three Outside Audit andSupervisory Board Members).

TOP

JAL REPORT 2023

36

Chapter 2 The JAL Group Value Creation Story

2. JAL Group's Value
Creation Story

1. Materiality(1) Safety Charter

3. JAL Group's Value
Creation Process(2) JAL Philosophy

4.4. FoundationsofFoundations of
Value
Value Creation
Creation(3) Divisional Profitability Management System

5. The Trails of Challenges(4) Governance

Main Agenda Items Discussed by the Board of Directors(i) Effectiveness Effectiveness Evaluation of the Board of Directors

In FY2021, a total of 19 monthly Board meetings and extraordinary Board meetings were held.

While referring to the self-evaluation of each director and auditor, and third-party analysis, we conduct an effectiveness evaluation annually.
We aim to improve our corporate value over the medium to long term by reviewing our operations.

【Management Strategy】【Financial Results Finance】●2021-2025 JAL Group Medium Term Management Plan

●Quarterly financial results●Response to Audit and Supervisory Board Member Audit
Results●Air accident report●Financing

Progress of the Rolling Plan 2022

●Verification of cross-shareholdings

Sustainability Initiatives【Dialogue with Stakeholders】

Promotion of business structure reformSupervision

Dialogue with shareholders

Challenges

Need to continually address new risks such as business expansion
and IT security

Efforts

Evaluation

Confirms that Directors and Audit and Supervisory Board Members
are well-balanced in terms of diversity, including expertise andacquired experience

Further constructive dialogue needs to be strengthened in light of
the increase in the number of individual shareholders

Further strengthening risk management

Enhancing interactive communication through better disseminationof information and understanding and analysis of needs

Ensure a systematic and comprehensive understanding of externalrisks and implement the PDCA cycle

Reinforcing information dissemination to individual shareholders
and establishing communication infrastructure

Promotion of human resources strategies【Governance and Risk Management】

Promotion of DX Strategy●Evaluation of Board effectiveness●2021-2025 JAL Group Medium Term Management Plan
Formulation of Rolling Plan 2023
●Strengthening risk management●Revision of Nominating Committee Statute●Status of operation of the shareholder benefit system●Report and decision of the Committee on●Efforts to further strengthen constructive dialogue withshareholders

appointment of new executives and remuneration●Development and evaluation of internal controls●Feedback on IR briefings, among others【Decision and Oversight of Other Important Duties】●Risk Management Related Reports●Disclosure on climate change based on TCFD

●Introduction of Boeing 737-8●Internal Audit Report by Auditing Department●Customer feedback●Corporation for the realization of solution sales Merger●Audit and Supervisory Board Member Audit Policy
and Resultswith JAL Sales(ii) Effectiveness Evaluation of the Audit and Supervisory Board
Sustainability, business model reform, and human capital

E va l u a t i o n

E va l u a t i o n

Efforts

In particular, in order to continuously improve the power of human resources,
we promote human resources strategies in line with our business strategies.

Confirms steady efforts to reduce CO2 emissions and steady progress inaddressing other issues

Review progress by businessarea

Review issues and direction ofefforts

・We confirm that we conduct free
and open discussions respecting theopinions of outside directors while
being audited by Audit andSupervisory Board Members on theexecution of duties.

FY2022・In addition to actively providing
information to outside directors, we
also ensure that there is highaccessibility to information, and we
confirm that outside directors fulfill
their roles appropriately.

FY2023

Evaluation of Audit and Super visor y Board Member Audits

Ef f orts

In general, each item (audit policy, audit activities, operation of Audit
and Supervisory Board, among others) was highly evaluated, and it was
confirmed that effective audits were conducted based on the audit
policy and audit plan that fully considered management issues andissues pointed out in the past.

Based on the Medium-Term Management Plan
Rolling Plan 2023 and Effectiveness Evaluationof the Board of Directors, we confirmed progressin our business structure reform and productivity
improvement. We also confirmed that the Audit
and Supervisory Board will be involved in the
Audit and Supervisory Board Member election
process and cooperate with voluntarycommittees, while being aware of the expanded
responsibilities required as an Audit
and Supervisory Board Member.

Consensus building has been carried out in the Audit and Supervisory
Board while respecting the opinions of each Audit and Supervisory
Board Member. The audit environment has been developed and evolved
by enhancing online discussions, attending various meetings by Outside
Audit and Supervisory Board Members, and enhancing the contents ofrecords.

Continuingchallenge
Medium- and long-term strategy
Business model reform

Human capital

Need to sort out how sustainability
initiatives lead to increased
corporate values

In some business areas, initial plans
have not been met due to delays inmarket recovery, among others, andquantitative reviews and discussions
on future moves are necessary.

Going forward it will be necessary
to take our initiatives more
seriously.

Efforts

Reorganize social issues to beresolved and quantify the targets ofinitiatives materialize therelationship with corporate valueenhancement

Review plans in each business area
to steadily implement the PDCA
cycle and create an environment for
expanding new areas

In order to enhance human capital,
we will further clarify the ideal
human capital profile and promote
the allocation of human capital to
growth areas and investment in
human capital.

DX
In order to realize the Medium-Term
Management Plan, it is necessary tovisualize the efforts of eachheadquarters and accelerate thecompany-wide promotion. Promote
initiatives related to DX strategy tocreate new customer value andimprove productivity.
In order to secure more time fordiscussion and to stimulate further
discussion, further efforts must be
made to improve the management
issues identified in FY2022.

In order to secure more time for discussion
and to stimulate further discussion,

Main Agenda of Audit and Supervisory Board
A total of 15 Audit and Supervisory Board events were held in FY2022.
Further efforts must be made to improve themanagement issues identified in FY2022.
< Examples >・Further ingenuity and improvement of materials
・Further contrivances of explanatory videos to supplement
pre-sent materials
・Supplementary explanation to questions about the contents ofthe proposal
・Clarification of issues by sharing issues within the execution【Audit】【Cooperation】【Remuneration of Self-Assessment】●Formulation of audit policies and plans●Resolution on reappointment of financial auditor and●Resolution on Audit and Supervisory Board Member's●Report on Audit Activities and Audit and Supervisory
Board Member Report Committee●Checking Risk Management Status●Investigation of proposals and documents for the
General Meeting of Shareholders

For more information about the results of the 2022 evaluation and future initiatives, visit our company website.

JAL REPORT 2023

remuneration's consent●Prior Understanding of Non-Guaranteed Business by Accounting
Auditors

Individual remuneration●Audit and Supervisory Board Member Questionnaire
Survey (Evaluation of Effectiveness Evaluation)●Review of KAM●Management interview●Review of the consolidated report

Data Section●Formulation of audit reports

WEB

Sustainability

Ch al l en g es

Sustainability

Operation

Growth Strategy

Challenges

Strengthened supervision of sustainability issues and business structural reforms is needed

The Audit and Supervisory Board conducted a questionnaire to all Audit and Supervisory Board Members and carried out a self-assessment on
the status of audit activities, which was used as a reference for planning for the next fiscal year.

Assessment of Audit and Super visor y B oard

37

Shareholders

Operations

Intermediate strategies
FY2022

FY2023●Approval of proposals related to the General Meeting of

The JAL Group Value Creation Story

Composition of the Board of Directors

Introduction④ Effectiveness Evaluation●Verifying the EMS Audit

https://www.jal.com/en/philosophy-vision/governance/#effectivenessTOP

JAL REPORT 2023

38

Chapter 2 The JAL Group Value Creation Story

1. Materiality

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

3. JAL Group's Value
Creation Process(2) JAL Philosophy

4.4. FoundationsofFoundations of
Value
Value Creation
Creation(3) Divisional Profitability Management System

5. The Trails of Challenges(4) GovernanceIntroduction⑤ Message from Outside Directors and Chair of the Board of Directors

Support the Company's Challenges
with the Knowledge of General
Trading Company Management andWork to Realize Rolling Plan 2023

The JAL Group Value Creation Story

Support the JAL Group's
sustainable growth with theknowledge of development as
a manufacturing and global
manager

KOBAYASHI Eizo

Independent Outside Director (Principal Independent Outside Director)
Chair of Corporate Governance Committee
Chair of Renumeration Committee

Independent Outside Director
Chair of the Nominating Committee■Deliver a sustainable growth story from theBoard of Directors■S upport growth strategy with knowledge
gained as top management

At the trading company where I was President, there was a saying,

The JAL Group Board of Directors has three outside directors, eachcontinued to say to my employees, "Challenge, Create, Commit" andAt the 2022 meeting of the Board of Directors, we discussed bothdeveloping engines and synthetic fuels at our manufacturers and thewith different knowledge and experience, who discuss various

I asked them to be honest in order to be trusted by our customers,

structural reforms and growth strategies. In terms of structural

National Institute of Advanced Industrial Science and Technology toissues. There was a sense of tension at the Board Meeting when theand to become people who launch businesses that open the futurereform, we focused on breaking away from the COVID-19 pandemic

provide advice on the importance of synthetic fuels for the future of

COVID-19 pandemic was anticipated to continue for three morewith an aggressive spirit and frontier spirit.

and restoring the LCC business. As for the growth strategy, we

decarbonization and GX.

years from the beginning of 2 0 2 0 as this would weaken the

Our company's board of directors also spoke out based on this

discussed refurbishing the cabin of passenger aircraft and thefoundation of the JAL Group. In 2 0 2 1, when the COVID- 1 9

experience.

business model utilizing freight-only aircraft, and decided on the■D iscussing board diversity from a global
perspective

investment paths when the COVID-19 pandemic subsides. When I

In addition to discussions on the Succession Plan at the Nominating

pent-up demand, the JAL Group changed its policy from the pre-■Enhance Effectiveness Evaluation of the Board
through Discussions

discuss growth strategies, I first have a hypothesis or a concept,

Committee, we decided to reappoint the President, which has been

COVID-19 FSC-only stance and attempted to introduce a new

In the Corporate Governance Committee, discussions were focused

which I use to develop a business plan and manage to check theenforced at other companies where I am an Outside Director.

businesses from a completely different perspective.

on the effectiveness evaluation of the Board. As Chair of theflow of decisions. And I believe that the decisive and driving factor in

Looking back at the President's efforts over the past year, andThere is a limit to what we can do with our employees when

Committee, I am conscious of the transparency of management

decision making is whether the company has established methods

confirming his future desires, we will be able to have a transparent

developing new businesses. But if you look at other companies,

decision making, and am facilitating it from the viewpoint of

to consolidate its management.

and exciting management process from the perspectives of whether

there are always companies that excel in different fields with talented

strengthening our company's management.

The growth strategy of the JAL Group now includes expanding into

his ideas will lead to the improvement of corporate values.

people. I think we have entered an era in which we can take on big

I always advise people to implement the Medium-Term Management

new areas. In March 2023, JAL signed a purchase agreement for 21

At our company, three of the nine directors are Outside Directors.

challenges by incorporating our foresight and knowledge. The future

Plan's PDCA, but when evaluating its effectiveness, I ask what they

Boeing 737-8 fuel-efficient aircraft. This is the first time in 18 years

However, as corporate management is questioning the importance

growth strategy of the JAL Group will be to take advantage of

could and couldn't do, why was it not possible and how it could bethat JAL has ordered a new Boeing model, which will be introducedof diversity, it is not enough to have a diversity of directors.

external resources through collaborating businesses and to establish

made into a valuable experience and asset.

in 2026. This is a very large investment that the JAL Group rarely

One of the outside directors was originally a woman, but it is

two or three new business realms.

In addition, when revising the Corporate Governance Code, we

makes. I hope the whole Group will be excited and take on thesignificant that Ms. TOTTORI Mitsuko, who was a former JAL

In formulating Medium Term Management Plan Rolling Plan 2023,

believe that it should be "Comply and Express" rather than "Comply

challenge. In order to achieve this, the Board of Directors needs toemployee, has joined the board as a Representative Director Senior

we recommended that it is important to convey our management

or Express." There is no point in adhering to the Corporate

properly communicate to our Group employees the story of why "airManaging Executive Officer. Furthermore, based on my experience inphilosophy to all employees and put it into our individual mission. In

Governance Code unless you can properly explain its contents. I willtransportation and societal connections" set forth in this Rolling Plan

global management, I feel that non-Japanese often have a stronger

order to achieve the stated goals, each employee must do their best,

continue to contribute to the improvement of board effectiveness bycreates value and a sustainable business model.

awareness of issues such as human rights, and it is time for ourand if it is difficult to do so, the PDCA must be turned around andtaking the reins of the Committee as Chair so that we can improve

From the viewpoint of sustainability, the aviation industry has a greatcompany to start considering the appointment of non-Japanese

reset again, and the whole company must work on it again.

our issues and move in a better direction.

responsibility to promote measures against climate change, such as

directors. As Chair of the Nominating Committee, I will continue toreducing CO 2 emissions. From an aircraft perspective, there are twoenhance discussions on the diversity of the Board of Directors inbasic directions to change the aircraft: change to an energy-efficientorder to broaden the scope of our company's business and promoteaircraft or change the loaded fuel. In particular, the production anddiverse discussions.

domestic SAF is a pressing issue. We will use our experience in

JAL REPORT 2023

Data Section

TOP

Sustainability

JAL REPORT 2023

"the status quo is, in other words, an omission". At that time, I

stable supply of synthetic fuels is essential, and research on

Growth Strategy

pandemic came to an end and air transport demand showed a

39

YANAGI Hiroyuki

40Chapter 2 The JAL Group Value Creation Story

1. Materiality

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

3. JAL Group's Value
Creation Process(2) JAL Philosophy

4.4. FoundationsofFoundations of
Value
Value Creation
Creation(3) Divisional Profitability Management System

5. The Trails of Challenges(4) GovernanceIntroduction

To maximize the strengthof Board Members withdiverse backgrounds andadvanced knowledge toinspire employees

MITSUYA Yuko

UEKI Yoshiharu

Outside Director■Create a climate where challenges can betaken through dialogue

also in many other companies. From now on, men and women will
have equal opportunities. A system must be created that allows them

Director, Chairperson■Build a trusting relationship with each andevery director■Support the implementation of growthstrategies through communication

to make mistakes, and experience small successes and small failures

Based on its responsibilities to shareholders and other stakeholders,

Needless to say, it is up to the JAL Group employees to implement thevolleyball member most of my travel was with JAL to and from Narita

over again from a young age. In order to create a climate in which

the Board of Directors is required to promote the sustainable growth

medium- to long-term growth strategy determined by the Board of

Airport. As my first flight was also with JAL, JAL is my starting point inyoung people can take on challenges, I want to engage in dialogueof the JAL Group and the improvement of corporate value over the

Directors. Taking advantage of my long term experience as a captain

air travel. As an athlete, my judgment is made not whether I can do it,with diverse employees in our company, including women and young

medium to long term while resolving social issues. In order to achieve(pilot) at the front line and coming from within the company, I always

but whether I want to do it. When I was offered the position of anpeople.

this, while conducting highly effective supervision, we must takeorganize the decisions made at the Board of Director meeting by

appropriate risks and present a major direction.

taking on the viewpoint of how to convey them to our employees. I

As stated in the Skills Matrix, diversity is a strength of our Board ofalso seek to deliver messages that will increase the commitment of ourI became a teacher soon after I retired from being an athlete, and I■Submit your perspectives to the Board
because this is your first year
In the coming year, I will use my experience to strengthen humanDirectors, which consists of members with diverse backgrounds andemployees.

this Rolling Plan 2023, we are focusing on human resource

resources development, diversity, and governance. The advantage

broad knowledge. Outside Directors, who have a wealth of

These days, some argue that Outside Directors should serve as Chairdevelopment and diversity under the guidelines of developing andof my first year as an outside director is that I can see JAL from amanagement experience and high levels of expertise, provide opinionsof the Board of Directors, but the important thing is to make optimal

hiring "a person who respects diverse values, challenges new value

fresh perspective. This will be a period before I will becomethat are hard to come by among internal executives. We have not

management decisions and make sure that those decisions are

creation, and inspires change". I would like to use my experience toaccustomed to the company's l thinking. I will be able to evaluate

once or twice heard proposals that extend much longer than planned

implemented. The responsibility of the Chair of the Board of Directors

contribute to the development of human resources that the JAL

the company from outside perspectives, including the perspectives

or that are not approved as proposed due to severe objections. This

is to ensure that the JAL Group is "the world's most preferred andGroup values. The point of contact with airlines that many customersof our customers, and compare it with other companies.

proves that a strong supervisory function is definitely enforced.

valued airline group".

imagine are cabin attendants (CAs). Given the fact that there is still a

I believe that it is my role to contribute to the improvement of

On the other hand, we decided to take the opportunity of thelarge percentage of women working as CAs among Japanese airlines,

Effectiveness Evaluation of the Board by making statements at the

COVID-19 pandemic to build a highly resilient business portfolio, but

the JAL brand and image as well as our service assessment will

Board of Directors meetings on areas we should improve.

in order to expand new business areas, we need to draw on theknowledge of Outside Directors to boldly support new challenges.

Because women often pursue their careers through life events such as

However, new businesses are reasonably risky and sometimes

childbirth and child-rearing, it is necessary for the JAL Group to

divided.

consider how to design their lives in the midst of the various options

My 30 plus years of pilot experience is advantageous. Pilots gather

that women have, and to prepare a system that enables suchdiverse information and opinions on every flight in order to deliver

employees to pursue their careers throughout their lives. In this sense,

safety and security based on the trust relationship with colleagues,

I feel that the appointment of Ms. TOTTORI Mitsuko as Representative

including those working at airports and in the cabin. Like an orchestra

Director Senior Managing Executive Officer is of great significance. In

conductor, the role of the Chair of the Board of Directors is to create

the past, women commonly were backups for men not only in JAL but

the best possible symphony by harmonizing the various voices in an

Data Section

depend on how many promising women we can produce.

Sustainability

have been working on human resource development since then. In

Growth Strategy

When I was in my 20s and traveling around the world with the national

Outside Director, I accepted this challenging offer.

The JAL Group Value Creation Story

Work to create a systemthat enables women andyoung people to play anactive role by leveraging
their experience as leaders

open discussion. The optimal feature of the Chair of the Board of
Directors is that it brings the minds of board members together in aposition that is distinct from execution.

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JAL REPORT 2023

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42

Chapter 2 The JAL Group Value Creation Story

1. Materiality

2. JAL Group's Value
Creation Story

3. JAL Group's Value
Creation Process

4. Foundations ofValue Creation

5.5.TheChallenges
TheTrails
Trails ofof Challenges

Introduction

5. The Trails of Challenges
Since its establishment in Japan in 1951 as the first commercial airline after World War II, the JAL Group hasconstantly grasped the trends of the times, and accumulated challenges and innovations. Going forward, we
will continue to take advantage of the strengths we have cultivated through our 70-plus year history to realize
vibrant society and future where many people and various where many people and goods freely move aroundand work together with our stakeholders to achieve the "the world's most preferred and valued airline group."

Became one of the world's leading global
airlines through privatization

Recovery from Bankruptcy
Overcoming the COVID-19

Create relationships and connections through airtransportation with ESG strategy as top strategy

1951 to 1970s

1980s to 2000s

2010 to Today

Initially, we hired another company, aircraft, and started our business by
operating and maintaining outsourcing.
However, we expanded our route network by realizing our long-awaited aircraft
and independent operations and supported the mass transit era of the 1970s.

As we enter the era of great competition due to the Open Sky agreement andderegulation of aviation, we improved our service quality to differentiate andgrow as a global airline.

After bankruptcy in January 2010, we recovered our business by optimizing the scale of our operations andreforming employee attitudes. An unprecedented crisis emerged with the COVID-19 pandemic, however wewill overcome it by taking advantage of the strengths we built up to date and working together to realize JAL
Vision 2030.

The JAL Group Value Creation Story

Leapfrogged into the era of mass transportation through theestablishment of a flight system and management foundation

To Become
The World’s
Most Preferredand Valued
Airline Group

Human Capital (FY2025)
Human resources that respect diverse values,
challenge new value creation, and drive change■ Aircraft
1951: Martin 2-0-2 operation started
1960: DC-8 operation started (leftphoto)
1970:Launch of jumbo jet Boeing
747 (right photo)■ Human Resources■ IT system
1964: Domestic electronic seat reservation
system started (photo)
1974: Domestic check-in system started■ Route Network
1952: Launch of domestic independent operations
1954: Launch of the first international flight,
Tokyo-Honolulu-San Francisco routes
1961: Launch of northbound European routes*
Launch of independent operations

1962: Launch of southbound European routes
1966: Launch of New York routes
1967: Launch of round-the-world routes
1970: Launch of Moscow routes*
Launch of independent operations
1974: Launch of China routes
1978: Launch of Brazil routes

1965: Launch of the sale of Japan's firstoverseas package tour, JALPAK2012: Launch of Boeing 787-8
services (left photo)
2019: Launch of A350-900 services(right photo)

1988: Announcing the recruitment of 113 non-Japanese stewardesses (70 fromthe U.K., 22 from West Germany, and 21 from Singapore)
1994: Introduced flextime system
1995: The first female 1st grade aircraft mechanic
1997: The first female pilot operates a flight, for the first time in Japanese regularaircraft, on Tokyo-Hakodate route as a co-pilot of B747 aircraft
1997: Introduced captains over 60 years old

2010: Introduced the first female captain in Japan
2015: Diversity management companies
Selected for the first time as "Nadeshiko Brand"
Selected as the first health and productivity
management brand2017: Introduction of Telework
2017: Introduced WORKCATION

1995: Launch of JAL website
1996: Launch of online domestic flight reservation services
1997: Launch of online international reservation services
1999: Launch of JAL ONLINE (Domestic business travel support system)
2002: Introduced Japan’s first international flight check-in machine (photo)
2005:Launched online check-in services (for domestic and international flights)
Touch-and-Go boarding begins

2012: Introduction of Wi-Fi on international flights
2017: Transfer passenger check-in system to Altea
2019: Introduced Self Baggage Drop (SBD) at Narita Airport
2020: Realized JAL SMART AIRPORT
Launched JAL Chat Auto Answer Service
2021: Launch Face Express

1983: Became the world’s highest passenger and cargo according to International Air
Transport Association (IATA) statistics(Five years in a row until 1987)
1991: Terminated northern European routes passenger services via Anchorage
1996: Founded J-AIR Corporation
2007: Registered as a oneworld member

2011: Launch joint business with American Airlines
2011: Founded Jetstar Japan in collaboration with the
Qantas Group in Australia.
2012: Launched joint business with British Airways
2014: Launched joint business with Finnair
2016: Launched joint business with Iberia Airways

1982: Issued JAL card
1984: Founded JALCARD Co., Ltd.
1993: Introduced International Mileage Program
1997: Introduced JAL Mileage Bank on domestic flights
2003: JAL card membership exceeds one million members
2004: Launch of Class J services

2007: Launch of first class services on domestic flights
2008: JAL card membership exceeds two million members

1990: Launched the (former) JAL Foundation
1991: Launched the Atmospheric Observation & Monitoring Project at the (former) JAL Foundation (periodic observation
started in 1993).
1994: Launch of a reservation center for priority guests
2009: World's first test flight using biojet fuel

The first Tsurumaru logo

(Plus 10.0 pts compared to FY2019)Intellectual capital
2019: Seven JAL Group companies certified as Certified Health & Productivity Management
Outstanding Organizations Recognition Program 2019 White 500
2019: Childcare introduced to pilots and cabin attendants with a short-day working system
2021: Nursing care introduced to pilots and cabin attendants with a short day working system
2021: Telework of part of the customer contact center work
2022: Promotion requirements reflected for childcare, nursing care and maternity leave periods
2022: Strengthen efforts to encourage male employees to take childcare leave

Improve CX and EX and create new values
and know-how● Regulations and manuals that protect the new aviation

safety● IT systems that utilize AI and advanced technologies torealize DX

Social and related capital
Networks that enhance air transportation andsocietal connections● JAL Group Airlines and partnership airlines

Work together to solve social issues
Partnership●Collaboration with local communities and business

partners

Customer base spanning aviation and non-aviation●JAL Mileage Bank Member

2020: Launched joint business with Malaysian Airlines
2021: SPRING Japan becomes a consolidated subsidiary

Manufacturing Capital (FY2025)
Accelerate aircraft renewal to support growthin fuel-efficient aircraft● J
 AL Group has nine types and a total of 232 to 238 aircraft

Of which 22 to 26 are deployed to internal and growth areas

1987: Full privatization
2002: Japan Airlines and Japan Air System integrate management Established
the Corporate Policy, Safety Charter and Code of Conduct

The second Tsurumaru logo

Financial Capital (FY2025)

2013: Launch of "JAL CLUB EST" credit card for people
in their 20s
2014: JAL card membership exceeds three million
members

2010: Became the first eco-first airline after concluding an
Eco First Agreement between the Minister of theEnvironment and the President
2011: Launched “Japan Project,” a regional revitalization
project
2014: Diversity Declaration

2010: Petition for reorganization
Restructuring of the route network,
Withdrawal from the dedicated cargo aircraftbusiness
2011: Established a new Corporate Policy JAL Philosophy
Introduced divisional profitability management
system and a revived Tsurumaru Logo

Rebuilding a strong financial base tostrengthen risk tolerance and achieve growth●About 50% of equity ratio (based on rating)●Credit Rating A Flat

2016: Established the JAL Group Supplier Code of Conduct
2019: Established a new JAL Group Code of Conduct
2019: Eliminated plastic straws and muddlers in cabins and lounge
2020:Announced commitment to achieve "Net Zero CO2 Emissions" by
2050
Japan's first successful production of domestic SAF using cotton
clothing
2012: Re-listed on the Tokyo Stock Exchange
Established Fundamental Policies of Corporate Governance
2019: Revised our Safety Charter and established a new Code of Conduct
2021: Formulated JAL Vision 2030

The third Tsurumaru logo

Natural Capital
Precious Earth/Resource use with low
environmental impact●World below the 1.5°C scenario●Conservation, restoration, and expansion ofenvironmental resources that are also tourism resources●Securing and using resources with low environmental

impactData Section■ Organization and Management Foundation
1951: Launch of Japan Airlines Co., Ltd. (former company)
1953: Founded Japan Airlines Co., Ltd. (new company)
1959: Introduced the Tsurumaru logo●H ighly engaged employees 64.4%●New fuel-efficient aircraft Two aircraft types 47%■ Sustainability
1964: Transportation of Tokyo Olympic torch
1967: Designated as the official airline for the World Expo
1972: Special flight between Tokyo and Beijing to transport two
giant pandas (Kan Kan and Lan Lan)
1974: Special flight to Moscow to transport the Mona Lisa
1975: Launched JAL Scholarships Program for students in Asia and Oceania (Photo)● Female managers 30% of all managers

Sustainability■ Customer Base

1990: Launch of Boeing 747-400 services(left photo)
1995: Launch of B737-400 (small aircraft)
1996: Launch of Boeing 777 services (rightphoto)

Growth Strategy

1951: Employment of stewardesses
1953: Employment of stewards
1954: Two Japanese acquired pilot certificates for DC -4
1965: Overseas dispatch apprenticeship program and student
program established
1969: Introduced Employee Stock Ownership Plan

● Productive and professional JAL Group employees

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

Safety andPeace of Mind

Build a society
where everyone
can live safely,
securely and witha peace of mind

JAL
Vision2030

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

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JAL REPORT 2023

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TOP

JAL REPORT 2023

44

Chapter 3 Growth Strategy

Chapter 3 Growth Strategy
Timeline
Recover and Stabilize Business Performance

Shift to Growth

The Medium Term Management Plan will place ESG strategies at the top of its management strategy tocreate new social values such as the sustainable flow of people, goods, and distribution channels.
We aim for medium- to long-term growth by focusing on solving social issues in Japan and othercountries around the world through "air transportation" and "connection."▶Creating Values through air transportation and Connection
As an important social infrastructure, air transportation provided by the JAL
Group has created social and economic values as a "safe and secure" meansof transportation through which many people and various goods can freely
move around.
Air transportation is both a means of transportation and a source of societal
connection.
Through this "connection," we contribute to the well-being of people and thewell-being of society, as well as revitalizing local communities.

See pp.49-50 ESG Strategy for details.

Director Senior Managing
Executive Officer
Senior Vice President ofCorporate Strategy andPlanning
Chief Financial Officer▶Promoting capital efficiency with capital costs in mind
In terms of finance to support these efforts, we will strive to improve capitalefficiency while keeping in mind the cost of capital.
In FY2025, we raised shareholder's equity ratio (based on credit rating
evaluation) from 39.3 percent to about 50 percent, and set the ROIC target at
9 percent and ROE at 10 percent or more by surpassing cost of shareholders'equity.
As we grow by creating new values, we will enhance capital efficiency whilestrengthening our financial base.
We are also considering the introduction of a new investment efficiency
index, "Sustainable ROIC" (tentative name), which takes social values into
consideration.
By visualizing the value of ESG strategies, one of our goals is performanceand capital efficiency. This takes into account not only the increase incorporate profits and cash, but also the increase in social values delivered
through our business.
The JAL Group aims to realize "a vibrant society and a future where many
people and goods freely move around," as set forth in JAL Vision 2030,
which aims to create a safe, secure and with peace of mind society and asustainable future.
As an officer in charge, I will contribute to the growth of the JAL Group by
striving to gain the understanding and support of our stakeholders and by
quantifying and visualizing the social value that the JAL Group brings, suchas well-being, productivity, innovation, and regional revitalization through airtransportation and connection.

45

JAL REPORT 2023

2050

Bn JPY or Above

100.0
Bn JPY

2021

2023

2025

(Plan disclosed on May 2, 2023)(Plan)

2022

FY2021-2025 Medium Team Management Plan

Outline of Environmental Awareness and Strategy
As of May 2023 (Medium-Term Management Plan Rolling Plan 2023)

Politics
政治
Digitalization and regional revitalization
Economic reconstruction by promoting
Japan as a tourism-oriented nation
Heightened environmental regulations
such as greenhouse gas control

EconomySociety and the Environment

Technology

	Centralization to decentralization andmultipolarization
	Fluctuations in fuel and foreign exchange
market conditions	Recovery from the COVID-19 pandemic	Urban and regional disparities	Transition to a resilient society	A move from “mass” to “personal”
	Accelerating the movement toward carbon
neutrality and biodiversity conservation
	World population growth and decline in Japan	Shortage of human resources in the aviationand tourism industries	Delay in recovery of international supplies

	Digital acceleration and integration with the realworld	Business model transformation with DX
	Non-face-to-face touchless services to becomea normMain Opportunities
Demand✓Increased demand for domestic
flights✓Increase in inbound traffic✓Generation of new demand due to changes
in consumer and business behaviors
Demand✓Air transport demand recovers fromthe COVID-19 pandemic

Demand✓Decrease in air transport demand
due to digitalization

Demand✓Increased costs associated withenvironmental regulations

Cost

Preference
Demand✓Improve customer preference byaddressing needs

Productivity✓Increased productivity✓Securing and creating demand by
maintaining and expanding route networks

Demand✓Creating new business models✓Slower growth in air transportdemand due to modal shift✓Decrease in passenger demand on local routes
✓Difficulty maintaining production system

Preference✓Loss of competitiveness due toobsolescence

Demand✓Obsolete existing business

Major Risks
Cost✓Decrease in passenger demand on
local routes

Demand✓Rapid fluctuations in freight demand

Achieve value creation through ESG strategies to achieve medium- to long-term growth

ESG Strategy

Long-term business strategy

pp.49-50 Topmost Strategy in Order to Realize Value Creation and Grow

Business strategy

pp.51-76

Business Model Reform

DX Strategy

Restructure business portfolio and increase profit
by promoting ESG strategies

Using digital technology to provide customers withsafe and secure travel and new experiences

Financial Strategy

Build Risk Tolerance and Growth

Strategy to Drive ESG Strategy
Human Resources Strategy

Develop and hire human resources that respect
diverse values, challenge new value creation, anddrive change

pp.77-80

GX Strategy

Accelerate efforts to achieve carbon neutrality by
2050 through a variety of approaches

Strategy to Support ESG Strategy
Resource Allocation

Amid the end of the COVID-19 pandemic, passenger demand originating in Japan and domestic flights are still weak, and the recovery in flights
originating overseas exceeds expectations.
Costs have increased due to the continued high prices in jet fuel market prices and foreign exchange trends.
The movement toward carbon neutrality and biodiversity conservation is accelerating.
Looking ahead to FY2025, although costs will remain high, passenger demand is expected to recover steadily, and a tight demand-supply
environment is expected.
We will position our ESG strategy as the top strategy for realizing value creation and growth and will shift to a medium- to long-term growth strategy
with value creation as the starting point. We will aim to achieve our management targets by steadily implementing our business actions and financial
plans to promote our ESG strategy.

TOP

JAL REPORT 2023

Data Section*Sales and EBIT by business area described in this Chapter are calculated using a simplified
method for internal management and are not sales and profit by business segment.
In addition, there is no one-to-one correspondence between air transportation businesssegment and other business areas.

2030（EBIT）

185.0

Profit Target（EBIT）(EBIT)
64.5 Bn JPY

Net Zero CO2emission

Sustainability

SAITO Yuji

FY2023-2025

JAL Vision

Growth Strategy

The importance of enhancing sustainability in society was reacknowledged
with the experience of the COVID-19 pandemic.
People who have a continuous and diverse relationship with a particularregion are called "related populations".
In a society with a declining population, the sustainability of the region
depends on how to stimulate interacting community.
It is our role to address the interests of the local area to people, to havethem engage with the area through experiences, and create "connections"
between the people and area. We also have the role to create a purpose forthis movement.
For example, rather than having one hundred visitors visit the area once, weshould deepen the connection with people and the area by having ten people
visit the same area ten times.
With the end of the COVID-19 pandemic, traveling restrictions has been

Rolling Plan 2023

relaxed traveling lifting, we will work across sectors and occupations to createconnections through air transportation.
In order to keep air transport sustainable, it is essential to reduce
environmental impact.
We will promote the GX strategy and work toward carbon neutrality andbiodiversity conservation towards 2050.
▶Making the most of human resources to create connections
As a business strategy to promote ESG strategies, we will promote businessmodel reform, DX strategy, human resources strategies (human capitalmanagement), and GX strategies.
Among them, we believe that human resources strategies (human capitalmanagement) are particularly an important driver.
The JAL Group, a provider of social infrastructure, is a group of humanresources with a strong sense of contribution by creating the JAL Group's
value of air transportation and connection.
Each employee understands and derives ideas based on the vision ofcreating "connections" outlined in the Rolling Plan 2023 and creates newvalues to create connections.
To achieve this, it is important for each employee to create new values,
challenge the creation of medium- to long-term values, and transform andgrow as a human resource, with aspirations.
More than 20 internal dialogues have been conducted since the publication of
the Rolling Plan 2023.
We received an enthusiastic response from many employees who mentioned
their satisfaction with the value of air transportation and connection.
And one of the keywords when creating new values is diversity.
We believe that the promotion of diversity, equity and inclusion (DEI), in which
diverse human resources are accepted and recognized and can play anactive role, will lead to new value creation.
Creating innovation and social change requires highly motivated humanresources.
We will adopt a more dynamic system for the utilization and promotion ofhuman resources by providing a work environment in which the humanresource performance of the JAL Group can be maximized to evaluate ourefforts in creating value.
At the same time, we will support the growth of our employees so that they
can build their own careers autonomously. We will also promote measures toincrease engagement and advance their careers by providing them with thenecessary means of reskilling.

Sustained Increase In Corporate Value

The JAL Group Value Creation Story▶Medium Term Management Plan Rolling Plan
Based on the results of the first two years of the FY2021 to FY2025 Medium
Term Management Plan and environmental changes, we revised andmaterialized specific strategies and plans for the three years to FY2025, andformulated the Rolling Plan 2023.
While the COVID-19 pandemic is coming to an end, new challenges haveemerged, including changes in geopolitical conditions, global price increases,
and a shortage of human resources.
In response to these changes in the business environment, we will achieve
our Medium-Term Management Plan by steadily implementing our ESG
strategy, which is the top strategy for achieving growth, in order to shift from"recovery and stability" to "growth."

Introduction

1. Overall Strategy ―Realize Value Creation through ESG Strategies for Medium-to Long-term Growth―46

Chapter 3 Growth Strategy

Overall Strategy
1.1.Overall
Strategy

2. ESG Strategy

3. Business Strategy

4. Financial Strategy

Safety and Security ―Accelerate Efforts to Realize JAL Vision 2030―

We have established management targets for FY2025 in the areas of safety and peace of mind, sustainability, and finance, taking into

The JAL Group aims to realize a safe and secure society by deepening the layers of safety as a leading safety company.
We aim to realize JAL Vision 2030 by focusing on the sustainable development of our human resources, the final stronghold to protect safety
and the driving force for value creation. We also addresses various environmental changes issues surrounding aviation and upgrades fight safety
using digital technology.

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.
FY2025 TargetsJAL

3 cases0 (during the entire period of the Medium-Term Management Plan)NPS*1 +4.0pt (FSC international/domestic)
CO2 Emission
Reduction

Environment

Reduction ofSingle-use Plastic

Sustainability
Communities

Regional
Revitalization

PeoplePromotion of D&I

EBIT Margin

total emissions:below 9.09 million tons

91% change

Development of Safety Personnel

Response to Environmental Changes

Use of Digital Technology and Information	Succession and continuous penetration of culture andawareness that puts safety and security as the highest
priority

Expanding JAL SMART SECURITY, an aviation security
facility capable of conducting sophisticated aviation
security inspections, in preparation for diversifying
threats such as terrorism	In addition to maintenance engineer's knowledge, wehave developed a failure prediction logic using big
data and AI to predict aircraft failures

Passengers -15%
Cargo -17%

Group Female Manager Ratio

22.8%(as of March 31, 2023)

Achieve 10% or Higher

4.7%

ROIC

9%

3.3%

JAL

EPS

c. ¥290 level￥79（Earnings Per Share）*1 Net Promoter Score：Objective indicator of customer satisfaction (compared to beginning FY2021)*2 Increase in passenger count between metropolitan and rural areas by stimulating tourism demand and creating new flows etc. AIM to improve Total Shareholder Return (TSR) FY2025 Targets
FY2022 Results

See p.48 for our efforts to achieve safety and security goals.

 FY2025 Targets
FY2022 Results

Sustainability

We have set targets in four social topics that the JAL Group address as important issues.
Environment : The reduction of CO2 emissions and single-use plastics emissions is expected to be thetarget for FY2025.
Community : D ue to the prolonged impact of the COVID-19 pandemic, the volume of transportation
decreased compared to FY2019.
People : Ratio of female managers rose 0.9 points to 22.8% from FY2021.
We are working to achieve our 2025 target of 30%.

See pp.81-110 for information on sustainability initiatives.

Finance

FY2022 Results

We will achieve the level before the COVID-19 pandemic in each indicator. The indicators in FY2023
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.
EBIT for the full year was 64.5 billion yen, which achieved profitability.
In terms of EBIT margin, ROIC and EPS, we aim to achieve these targets in FY2025 while
simultaneously strengthening risk tolerance and achieving sustainable growth.

See pp.77-80 for our efforts to achieve our financial goals.

47

JAL REPORT 2023

Recognition and Award from Outside Parties
JAL is the only Japanese airline to be certified as APEX *1"WORLD CLASS" for two consecutive years following 2021.
APEX "WORLD CLASS" is an award established in 2021
to evaluate airlines in the post-COVID-19 era, and only
airlines that provide high-quality services in line with thesenew values have been selected due to growing interest in
sustainability, safety and security, and well-being.
For the sixth consecutive year, SKYTRAX *2 has recognized
us as a "5 Star" airline that provides the highest quality inthe world, and we are recognized for our staff's consistentknowledge of products, services and safety from the airport
to the cabin.
*1 The Airline Passenger Experience Association (APEX) is based in North America and is one of the world's largest airline industry associations.
*2 SKYTRAX is an international air transport rating organization based in the U.K.

■ Creating a Safe Environment
During the COVID-19 pandemic, to ensure cleanliness, the JAL Group cooperated with Kao Groupand carried out hygiene management based on expert knowledge, including supervising thecleaning manual of cabin attendants and airport staff.
In August 2022, we completed the introduction of an advanced security inspection system with
X-ray inspection equipment, a passable lane (smart lane), and JAL SMART SECURITY equippedwith a UV disinfection system for domestic flights at Haneda Airport to enable smooth and hygienic
security systems.
As COVID-19 was downgraded to common infectious disease on May 8, 2023, daily life is gradually
returning to normal. The JAL Group, however, will continue to ensure that all customers can enjoy
safe and comfortable air travel through the utilization of the latest technology and the creation of aclean environment.

Data Section

FY2025 Targets

To prevent turbulence during flights, we havedeveloped a system to obtain the latest weather
information in a timely manner through the evolutionof observation and communication technology

Sustainability

Safety and Security

 chieve a clean record free of aircraft accidents and serious incidents during the period covering theAmedium term plan, and create a comfortable world-class customer experience that provides peace ofmind in all settings.
Safety：We fell short of our target due to three aircraft accidents that caused injury to persons on board
from the shaking of the aircraft. In response, we stepped up measures to prevent injury causedby the shaking of the aircraft to protect the safety of our assengers and crew members.
Peace of Mind：H
 uman services at airports and in the cabin were highly rated, but there were challenges
in dealing with service changes due to COVID-19 and congestion due to rapid demand
recovery, and we will make improvements this fiscal year.

See p.19 for Safety Culture.

Leveraging the know-how cultivated in airtransportation business to create sustainable logistics
using drones and eVTOL and promote initiatives tosupport local communities

Growth Strategy

Finance（Return on Invested Capital）• Diversification and manifestation of global risks• Development and penetration of digital technologies

819 million tons

Cargo and Airports: 100% switch to eco-friendly materials

30％

Changes

Domestic +3.0pt

45% abolished+10％ vs FY2019• Promotion of ESG-based management strategies

Changes• Progress in business model reform (expansion of business areas)
定し、最重要経営課題として取り組んでまいりました。

international -3.3pt

Cabin and Lounge: No use of virgin petroleum-based plastic

Domestic Passenger*2 and Cargo transport volume

Top ESG Strategies
Global Risk and Technologyのそれぞれに目標値を設
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」
Internal Environmental
External Environmental

The JAL Group Value Creation Story

Peace of Mind

JAL

Environmental Changes Surrounding Safety and Security 事業を通じた影響度合い、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、経営にとってのAircraft Accidents and Serious Incidents

SafetyPeace of Mind

FY2022 Results

Introduction

Management Targets ―Work Steadily Towards their Achievement by FY2025―TOP

JAL REPORT 2023

48

Chapter 3 Growth Strategy

ESG Strategy
Strategy
2.2.ESG

1. Overall Strategy

3. Business Strategy

4. Financial Strategy

2. ESG Strategy―Creating Social and Economic Value and Improving Corporate Value by Creating Relationships and Connections Through Air Transportation―
The JAL Group has positioned ESG strategy as its top strategy for growth toward 2030. We will address
important social issues we face by creating relationships and connections through air transportation, while
creating sustainable social and economic values and enhancing corporate value.

The movement of people and goods, which the JAL Group has provided mainly for air transport, creates societal connections.
This transportation and connection will solve various social issues, such as revitalizing the regional economy, and creating social value, such asenhancing people's well-being.
To create economic value, we will develop businesses that expand societal connections. By expanding our business in this area, we aim to establish

In order to create connections and relationships through air transportation, we will work together across business domains to realize our value
creation story for ESG by promoting initiatives to offer more choice, remove constraints, and create purpose.

Offer more choices

Remove constraints

Create purpose

By various means

For everyone

Many times

FSC[Social Value of the Societal Connection]

As a safe and secure social infrastructure, we will provide networks and achievecarbon neutrality through the introduction of fuel-efficient aircraft and the use ofSAF.

We will conserve the environment and biodiversity, which are also tourism
resources, revitalize regions by stimulating interacting communities, namely
people who have continuous and diverse relationships with specific regions, andimprove people's well-being by creating social connections.

New Tourism workcations, etc.
Create a new purpose of movement

Cargo

LCC

Modal shift from trucks to airplanes

Low price range
Mileage[Social Value of Movement of People and Goods]

FSC

Travel, Region

Improving accessibility

Diverse fares and services
Network

new sources of revenue and achieve growth as a corporate group by leveraging these societal connections to drive increased demand for air travel
and expand the profitability of our aviation business.

FSCFSCFSC

Various products and services
Diversification of payment instruments

The JAL Group Value Creation Story

Value Creation and Sustainable Growth by Building Relationships andConnections through Air Transportation

Introduction

Initiatives to Create Connections and Relationships Through Air Transportation

×We will increase the number of ways totravel and connect, including the choiceof airfares at different price points by FSC
and LCC, and the ability to use a variety of
products and mileage.

Air Mobility, MaaS
Infrastructure development in remoteislands and mountainous areas
Seamless travel×

Create new logistics (relationships withlocal communities) through productdevelopment and discovery

In order to create a purpose of movement
and connection that makes people wantto move many times, we will create new
movement objectives such as New Tourism
and workcation.

Growth Strategy

By improving accessibility so that anyone
can move and connect, we will eliminate
restrictions such as enabling customers
with travel barriers to move without stress.
We are also working to achieve new forms
of seamless mobility through air mobility
and MaaS.

Cargo, CommerceSocial values

Movement of People and Goods

Societal Connection✓ Safety and security✓C onserve the environment and✓ Social infrastructure network

biodiversity✓ Carbon neutrality

Customer base

Air Transportation✓ Revitalize the local economy✓ Improve of people's well-being

Societal Connections

Expand New Air Transport Demandby Societal Connection

Develop New Businesses that Expand
Societal Connection

Expansion of aviation revenues

Turn non-aviation business into a new revenue sources

FSC

LCC

Cargo and Mail

Mileage, Lifestyle, and Infrastructure

Economic values[Non-Aviation Business Growth (Economic Value)]

Air transport demand will acquire new movement of people and goods createdby our efforts to create societal connections between people and goods, thereby
achieving increased revenue and further growth in the aviation business.

To grow our non-aviation business, we will expand the opportunities for customers
to use the JAL Group and expand our customer base through the development of
new businesses in our Mileage, Lifestyle, and Infrastructure business that create
societal connections between people and goods.

■ Providing Information to Relieve Concerns
We have created Sky Challenge Video, a video that summarizes the sequenceof events from check-in to baggage pick-up. It is posted on our website forcustomers who require special assistance. This video was made to help
eliminate any pre-flight concerns our customers may have.
We are continuing to implement the Airport Experience Program, which allows
customers to experience the sequence of events from booking to boarding torelieve anxiety.

■ Providing Accessible Tour Products
With the aim of providing safe and comfortable air travel for our customers with
developmental disabilities, we have integrated valuable information into ourprograms to identify and eliminate the barriers faced during travel.
Together with the Chuo University Research and Development Organization andthe Transportation Ecology and Mobility Foundation, we developed a program forpeople with disabilities to participate in tours through pre-experience sessions
at airports and on planes, and practice wearing seatbelts at home. In October
2022, we held an Autumn Accessible Tour in Yamagata.
In this joint project, experts including advisors and researchers whose children
have developmental disabilities took part from the planning stage.
As a first step to expand this program to other regions, in FY2023, we areplanning a tour to depart and arrive from Osaka (Itami) Airport as a first step inregional development and reflect the awareness we gained last year.

Data Section[Growth of Aviation Business (Economic Value)]■ Creating a More Comfortable Environment
In order to provide stress-free access for all our customers, for customers who
require sign language and subtitles, we have introduced a safety video with sign
language interpretation and subtitles.
At the airport, we are working to create an environment that is comfortable andeasy to use by setting priority seats at Diamond Premier domestic flights and
Sakura lounges.
We will also strive and continue to provide intangible services and hospitality.

Sustainability

Human capital base

Efforts to Improve Accessibility

Narration: Press this blue button when flushing.

49

JAL REPORT 2023

TOP

JAL REPORT 2023

50

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

Business Strategy
3.3.Business
Strategy

4. Financial Strategy(1) Business Model Reform(2) DX Strategy(3) Human Resources Strategy(4) GX strategy■ Changes in EBIT from FY2023 to FY2025
Profit Target (bn. JPY)

To promote ESG strategies, we will promote business model reform, DX strategies, human resources strategies(human capital management), and GX strategies.

Profit growth by steadily
capturing recoveringinternational demand

15.0
LCC

55.0

Cargo and Mail

Profit growth by developing
new business models

LCC

Expansion of ZIPAIR, andprofit growth of SPRING
JAPAN due to demand
recovery of China routes

Mileage, Lifestyle and Infrastructure

Steady profit growth in the
Mileage business

15.0
Mileage, Lifestyleand Infrastructure

100.0(1) Business Model Reform
We will restructure our business portfolio by promoting our ESG strategies and address social issues in our four business areas. While changing ourrevenue structure, we will realize our medium- to long-term profit growth.
In FY2025, we plan to record about half of our profits in the LCC and Mileage, Lifestyle and Infrastructure business areas.

FY2023

FY2025(Plan)Air Passengers

Profit Trends by Business Domain

185.0

EBIT (bn. JPY)

FSC, Cargo and Mail

Maintain and expand networks while reducing environmental impact byintroducing fuel-efficient aircraft, and stimulate interactive community

or above

LCC

Aircraft

A350-1000, 737MAX, ATR

Network

Expand domestic and international networks on our own andthrough alliance

Mileage, Lifestyle andInfrastructure

100

132.0

Leverage the advantages of air transportation to resolve issues in
the logistics industry, and create a sustainable logistics network

Achieving Sustainable Growth by Connecting People with the World and Regions

FSC and LCC will maintain and expand networks connecting cities, regions, Japan, and the world, while strengthening cooperation withpartnership airlines, to create value for mobility and connection. By updating to fuel-efficient aircraft strategic fleet allocation will strive forsustainable growth that combines network expansion with environmental measures.

Meeting the Needs of a Wide Range of Customers Through the FSC and LCC Lineups
Full Service Carrier (FSC) maintains and expands high-quality products, and services and a highly convenient network. Each airline operates flights according to the scale of demand
and route characteristics.
We will deepen our cooperation with partnership airlines, build essential networks for business, tourism and daily life. This will contribute to stable human flow and logistics byconnecting cities, regions, Japan, and the world.
The three LCCs, namely ZIPAIR Tokyo, SPRING JAPAN, and Jetstar Japan, aim to expand their associated demand by offering reasonable prices for tourists and demand for VFR *1,
which is expected to grow. LCCs will make air travel easier and more accessible.
Based on the diversified needs for prices and services, the JAL Group will provide a wide range of prices and services, covering the entire international and domestic markets.
Relatives*1. Visit Friends and140
140
※2

*2
Business Scale（ASK※2）

Operation of 767 and A321 freighters,
partnership with Yamato Holdings etc.

Note: Including ZIPAIR,SPRING JAPAN. Excluding Jetstar Japan.
Note: Including ZIPAIR,SPRING JAPAN. Excluding Jetstar Japan.

(%)
(%)
140
140

100.0

126
International 126
International
120
120

Create new flows of people
through flexible business development in response to the market

15

64.5

45

100
100

100
100

Aggressively expand North
American and Asian routes

Develop routes to large
cities/regions in China

100
100

Introduce new aircraft,
redeployment of Asian routes

70
55

Approx.
40%

2025(Plan)(Plan)*1 Pre-pandemic: figures deducting impact of COVID-19 from FY2019 results (earnings forecast
figures disclosed at the announcement of FY19Q3 financial results (IFRS)Create commercial activities that connect people and regional
communities by developing diverse products and services

JAL REPORT 2023

2022
2022

99
99

2023
2023

2025
2025

(Plan)(Plan)(Plan)(Plan)

TravelNew tourism that creates an interacting community

Regions

Maximize the value of regions through solution sales marketing

Contracted Services

Contribute to an increase in Japan-bound passengers throughcontracted services for overseas carriers' flights

Air Mobility

Revenues
Note: Excluding Jetstar Japan
Note: Excluding Jetstar Japan(bn,JPY)
JPY)
(bn,
1,200
1,200

1,015.9
1,015.9

1,250.0〜
1,250.0〜

1,176.0
1,176.0
900.4
900.4

International
International

800
800

LCC
LCC

400
400

Domestic
Domestic

Establish transportation infrastructure for remote islands,
mountainous areas, etc.
00

51

80
80

100
Domestic 100
Domestic

Data Section

2023

99
99

*2 Available Set-Kilometer (ASK): Unit for capacity to carry passengers. Total number of seats x distance (km)Mileage/Commerce Develop Mileage and Lifestyle services that create connections

FY2022FY2019FY2019108
108

Sustainability

Approx.
10%00Pre-pandemic*1

Growth Strategy

Approx.
50%

The JAL Group Value Creation Story

FSC

185.0 or above

FSC
Cargo and mail

Introduction

3. Business Strategy ―Business Strategies to Promote ESG Strategies―

FY2019FY2019

2022
2022

2023
2023

2025
2025

(Plan)(Plan)(Plan)(Plan)TOP

JAL REPORT 2023

52

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

Business Strategy
3.3.Business
Strategy

4. Financial Strategy(1) Business Model Reform(2) DX Strategy(3) Human Resources Strategy(4) GX strategy(i) Portfolio
Enhance Reciprocal Customer Transfer

International

Stability

MaDomestic-oriented routes

LCC

LCC

China-oriented routes

Codeshare partners

CO2 emissions will be reduced by replacing the existing Boeing 777 and Boeing
767 with the new Airbus A350 and Boeing 787.
These new aircraft will improve fuel consumption per aircraft by about 20
percent.
In FY2025, 47 percent of the total fleet will be replaced with new models.
Specifically, from the second half of FY2023, we will introduce Airbus A3501000 on international long-haul routes to reduce environmental impact andimprove cabin comfort.
Furthermore, from FY2026, Boeing 737-8, a new small aircraft, will gradually
renew the conventional Boeing 737-800. Looking ahead to our Medium-Term
Management Plan, we will promptly introduce and renew aircraft over the
medium to long term.

Rate of New Passenger Aircraft (with over 100 seats)

33
companies*

Price range

FY201929%

High

Domestic Flights

Distance

Upgrade results in
20% improvementin fuel efficiency
per aircraft

FY2025

53%

Low
Short

71%

*Overseas: 30 companies
Japanese: Three companies(FDA/AMX/ORC)

Long

International Flights■ FSC▶Domestic
Maintain the same level of supply as before the COVID-19 pandemic by maximizing the resources of Group airlines.
We will create new demand for travel through co-creation with local communities and promote inbound regional travel.
We will also implement code sharing using the framework of Essential Air Service Alliance (EAS LLP), which is composed of three regional airlines in
Kyushu with outlying island routes (JAC, Amakusa Airlines Co., Ltd. (AMX), ORIENTAL AIR BRIDGE CO., LTD. (ORC)), JAL, and All Nippon Airways
Co., Ltd. (ANA). JAL and ANA will work hand in hand to contribute to regional revitalization by creating human flows to cities and outlying islands.

47%

ATR aircraft operated by JAC and HAC are turboprop aircraft with low CO2 emissions.
HAC decided to introduce its fourth ATR aircraft in January 2023 and is preparing for the start of operations in the fall.
Maintaining and expanding routes in Hokkaido will improve convenience for citizens and residents as they are important routes for business, medicalcare, hospital visits, and other social activities.

■ Deployment of Aircraft to Growth Areas (International LCC and Cargo Aircraft Business)
We will actively deploy aircraft in our growth areas of international LCCs and cargo flights.
In FY2025, six cargo aircraft will be upgraded from being passenger aircraft. To stimulate growth in international flights with ZIPAIR and SPRING
JAPAN, 16 to 20 aircraft will be introduced in FY2025, up from two in FY2020.

6

Freighters

Convert passenger aircraft to freighters
767 freighters: Introduce 3 aircrafts
A321 freighters: Introduce 3 aircrafts

20(ii) Aircraft Build a Network with 229 Group Aircraft
Aircraft will be placed in growth areas and fuel-efficient aircraft will be introduced to maintain and expand our business scale and create mobility andconnections while reducing our environmental impact.

16

LCC

Sustainability

Through collaboration with JAL, we aim to improve the visibility of each company and the convenience of customers by strengthening our sales
power and improving our brand strength. We will also ensure that the three LCCs capture the tourists and VFR markets, which are expected to growfurther in the future, and expand our business scale.

Increase LCC aircraft for the growth of international flights
Introduce 16 to 20 aircrafts■ Number of Aircraft for the Entire JAL Group*By the end of FY2025, the JAL Group plans to build up its fleet size to 234
aircraft, the same as the pre-COVID-19 era.
We will strategically utilize FSC and LCC using different aircraft to respond tochanges in the business environment and fluctuations in demand trends.

Introduce
A350-1000
234

224

229

FY2019Recovery before the
COVID-19 pandemic
232-238

Freighters
LCC

International

1

Topic

2022

2

2025

3

Note: All figures are for the number of aircrafts at the end fiscal year

Noise Reduction

We are steadily upgrading to the most advanced aircraft that complies with noise standards* (ICAO
Chapter 4, Chapter 14).
The flagship carrier will be upgraded to the state-of-the-art Airbus A350, which is efficient in fuelconsumption and low in noise.
We are also actively working on reducing noise sources with noise abatement operational procedures,
which are the responsibilities of the International Civil Aviation Organization (ICAO) Balanced Approach to
Aircraft Noise Management.
* Standards established by ICAO. Chapter 4 applies from 2001 and Chapter 14 applies from 2017

FY2019

2022

2023

2025

Percentage of Aircraft Complying with ICAO Noise Standards
(%)
100

100

100

100

40

41

42

FY2020

FY2021

FY2022

100

80
60
40

Data Section

Domestic

JAL REPORT 2023

Increase
new model
aircraft■ Existing aircraft: 777, 767, 737-800■ New aircraft: A350, 787

■ LCC

53

FutureGrowth Strategy▶ International
By expanding routes to and from Haneda, which were planned to be expanded in FY2020, and improving the convenience of connecting todomestic flights, we will contribute to the expansion of human flow and logistics in Japan and overseas.
We will also work with our joint business code share partners to increase the share of transit demand between North America and Asia, where
demand is recovering quickly, on routes to and from Narita.

Source: Airbus JapanThe JAL Group Value Creation Story

GrowthLCC

Joint VenturePartners

High

FSC

Entered into same routes to maximize shares

Domestic

Introduction■ Reduction of CO2 Emissions by Upgrading to New Models① Portfolio/Aircraft

46

20
0

Chapter 4 Standard Equivalent Aircraft

FY2025Chapter 14 Equivalent Aircraft(Plan)*The number of aircraft in operation, taking into account decommissioning.
TOP

JAL REPORT 2023

54

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

Business Strategy
3.3.Business
Strategy

4. Financial Strategy(1) Business Model Reform(2) DX Strategy(3) Human Resources Strategy(4) GX strategy② FSC
Continuously Create Value by Capturing Recovery and Growing Demand for Mobility and Connections

Progress Towards Achieving FY2025 Targets
FY2022

FY2023

Improve profitability by maximizing
JAL Group companies' resources

Accelerate efforts to reduce environmental
impact and restore/expand demand・Swiftly adjusting the flight schedule in response
to demand recovery
・Expanding domestic services, including the
introduction of First Class on the Haneda –Hiroshima route and the Haneda – Kagoshimaroute, and the introduction of JAL SMART
AIRPORT in major domestic cities

・Airbus A350, a fuel-efficient aircraft, to improve
preference・Promote the development and provision of
products and services that reduce environmental
impact・Promote further ESG strategies using alliancesand joint business・Expand networks in response to demand recovery

FY2025 Targets

Medium-term Approach

Profittarget （EBIT）(EBIT)
利益目標(bn, JPY)

Total FSC business and Cargo and Mail business

150

100.0

100
50
0

24.9
FY20222025

Promoting the Development and Provision of Products and Services that Reduce Environmental Impact

We will eliminate the use of new petroleum-based plastics completely in in-flight services and lounges by FY2025.
In order to reduce food waste, the lounge will gradually have staff serve certain buffet menus and introduce online
orders.
For in-flight meals, JAL Royal Catering will recycle the composts of food residues from the in-flight meal manufacturing
process in Haneda and Narita.
In December 2022, we expanded the JAL Meal Skip Option for international in-flight meals to all routes to reduce foodwaste.
We are also expanding the use of carbon offset services for individuals and businesses.
In November 2022, we conducted a sustainable Charter Flight to realize carbon neutrality. We aim to realize asustainable society not only with our own efforts but also by cooperating with our customers, companies, and local
communities.
In addition, the interest in environmental measures is growing year by year. We view this as an important purchasing
decision factor and will promote initiatives to encourage customers to choose the JAL Group.

For more information about security,
visit our company website.
WEB

Growth Strategy

・Maintain and expand networks while
reducing environmental impact tocreate a relevant population

Smart lanes

The JAL Group Value Creation Story

We will increase profitability by expanding our international network in response to the recovery
and expansion demand from the COVID-19 pandemic, maintaining and expanding domestic route
networks as social infrastructure, and improving our preferences through service innovation. To achievesustainable growth, we will also promote the development of products and services that reduce
environmental impact, and ESG initiatives utilizing alliances and joint businesses.

Following Haneda Airport, JAL SMART SECURITY will be introduced at Naha Airport Domestic Flight A security
checkpoint in March 2024 (scheduled).
By introducing advanced X-ray CT inspection equipment, we will realize safer and more secure inspection without
removing liquid materials, personal computers, and plastic bottles.
In addition, our customers will be able to prepare and pass the inspection smart lane quickly as three people can go
through the lanes.
The JAL Group will continue to provide safer, more secure and stress-free airport services for our customers.
Starting with our 2023 Winter Schedule, the Airbus A350-1000 will be introduced on the New York route and theaircraft flight will be expanded gradually.
As for domestic flights, we have already introduced sixteen A350-900 aircraft, and will steadily upgrade the aircraftwith less noise and using less fuel consumption to reduce environmental impact.
We also decided to introduce the Boeing 737-8 in March 2023, with the aim of starting operation in 2026.
By deploying aircraft with as little environmental impact as possible, we will promote compliance with futureenvironmental regulations and create a foundation for sustainable air transportation. We will also enhance customer
preference and comfort, thereby strengthening the business demand, which is the basis of our revenues.

Introduction

Medium-term Approach Improve Customer Preference by Introducing New Flagships and Renewal of Services

https://www.jal.com/ja/sustainability/kakure/*Japanese only

For details, please refer to Sustainable Charter Flight on pp.81-82.

Medium-term Approach Expand Networks in Response to Demand Recovery

Medium-term Approach■ International Flights■ Domestic Flights

55

JAL REPORT 2023

Estimated total passenger demand (total market demand)

Air transport demand is steadily recovering
International

FY2025 end: Recovery to 90% level

Domestic

FY2023 medium: Recovery to 90% level

JAL and oneworld alliance members Alaska Airlines, American Airlines, British Airways, Finnair, and Qatari Airlines have jointly announced their intention
to purchase SAF Ziebo. from Gevo Inc., a renewable fuel manufacturer in Colorado, United States.
Over the next five years, starting in 2027, the Alliance plans to procure a total of approximately 750,000 kiloliters of SAF, which JAL will ship to Los
Angeles on the west coast of the United States, to scheduled flights at Los Angeles, San Francisco, and San Diego International Airports.

Voice(%) Note: Compared to CY2019 (pre- COVID-19 pandemic)
100
90

80
70
Domestic
International60
500FY2022

FY2023

FY2025MIYABE Yuka
Route Strategy
Assistant manager

Contribute to Regional Revitalization Through Code Sharing (Joint Operations) beyond the GroupAs part of a new initiative by EAS LLP, we began codesharing (joint operations) on October 30, 2022.
Although there were variety of systems and airport operations due to the different lineages, we were able to overcome many barriers throughcooperation and consultation.
In addition, ANA was able to sell seats on AMX and JAC flights and JAL was able to sell seats on ORC flights.
This has enabled us to expand our network to areas where we do not operate, and has enabled more customers to travel to outlying islands.
In addition, we believe that the increase in the number of passengers using outlying island routes will lead to the revitalization of the service areaand enable the stable operation of life routes.
JAC and other community-based airlines play a role as a transportation infrastructure closely related to people's lives, and we feel thatmaintaining these routes has great social significance.
We will continue to work with airlines that play such a role to ensure sustainable route management.

TOP

JAL REPORT 2023

Data Section

Domestic flights maintain and develop networks as an important infrastructure that supports society.
In particular, regional airlines, namely J-AIR, JAC, HAC, JTA, and RAC, have a social mission of
supporting daily life routes. We will make the most of their resources to maintain the same supply of
total seats as before the COVID-19 pandemic, optimize their networks, create travel demand, andcreate and disseminate regional attractiveness.
The Sapporo (Okadama) -Nemuro Nakashibetsu Line will open from the 2023 winter schedule. By
strengthening ties between Sapporo City, which supports medical and disaster prevention, and the
Nemuro area, including Nakashibetsu Town, we will contribute to the promotion of local industries andthe development of local communities while enhancing the convenience of local medical services.
In addition, together with neighboring Memanbetsu Airport, Kushiro Airport and Obihiro Airport, we will
enhance wide-area tourism in Higashi Hokkaido and revitalize the Doto area.
In addition, we will expand New Tourism by co-creating with local communities based on creating new
demand opportunities.
Creating new flows of people by countryside stay, anime tourism, travel subscriptions, eco tourism.
They will contribute to solve social issues at the same time as increasing the number of passengers
on domestic flights and revitalizing the local economy. We will also promote workcation and adventure
tourism.
In addition, for inbound travel, we will set priority destinations for each country of departure and promote
inbound travel.

We will strengthen our network with partner carriers, joint businesses and partnerships, with the aim of enhancing customer convenience and attracting a strong numberof international visitors to the region.
As for ESG, we will deepen our understanding of our mutual ESG strategies and consider opportunities for collaboration.
Using the oneworld framework, we will conduct joint procurement of SAF in the United States and expand its presence in scheduled flights. We will also consider
promoting SAF production in regions with low manufacturing capacity and making strategic investments with SAF manufacturers.

Sustainability

For international flights, the total passenger demand is expected to recover 90 percent of the 2019 level (pre- COVID-19 pandemic) by the end of FY2025.
As COVID-19 is now classified as Class 5 infectious disease in Japan, we will plan routes and number of flights in response to the recovering travel demand.
With the expansion of the Haneda Airport Departure network, which had been suspended during the COVID-19 pandemic, and the introduction of the new flagship Airbus
A350-1000, we will develop new services to strengthen the uptake of Japanese business and tourism demand.
In addition, we will strive to capture inbound demand and transit demand between North America and inbound demand by code sharing with other Asian airlines as wellas route network expansion to and from Narita.
By strengthening cooperation with joint business partners and expanding new code shares, we aim to increase customer options and build a highly convenient network.
In addition, in 2024, we will open the new Haneda – Doha route in our summer flight schedule, the first direct flight to the Middle East by a Japanese airline.
Through the international network of Qatar Airways, which is a member of oneworld Alliance with JAL, it will be possible to connect from Doha to the Middle East, Africa,and South America.

Further Promotion of ESG Strategies Using Alliances and Joint Businesses

56

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

Business Strategy
3.3.Business
Strategy

4. Financial Strategy(1) Business Model Reform(2) DX Strategy(3) Human Resources Strategy(4) GX strategy

Cargo and Mail

Based on the Growth in Demand, Generate a New Flow of LCC Passenger Traffic
In the growing market, the three LCCs will create value for human mobility and connections withothers by offering reasonably priced tickets on their respective network. We will also contribute to the
expansion of inbound traffic and the creation of international transit demand with Narita Airport as ourhub, thereby achieving high profitability and expanding the scale of our business.

Connecting Goods, People and Communities with High Quality Transport and New Business Models

Air freight is expected to play an ever-increasing role in high-speed transportation to connect goods with people andcommunities. We will strengthen our handling of high-value-added products such as pharmaceuticals and Japaneseregional products that require high quality transport, which is a strength of the JAL Group. In addition, we will establish asustainable logistics network based on a new business model to solve social issues in logistics.
Progress Towards Achieving FY2025 Targets
FY2022

FY2022SPRING JAPAN:

Stabilizing the business foundations andfinancial conditions of the three LCCs

Expansion of Business Scale andRealization of High Profitability

Profittarget （EBIT）(EBIT)
利益目標(bn. JPY)

Number of aircraft:11 aircraft*
Number of routes in service:13 routes*

20

15.0

15

Capturing inbound demand
Building a production system for expansion:

Expand networks in Asia, North America,and China:

10

Proactively reform the cost structure by reviewing
fleet and route strategy based on actual demand andchanges in the market environment.

Enhancing competitiveness and reducing
environmental impact through the introduction of
Airbus A321 LR:

0

5

FY2022-8.0

the expansion of the JAL Group's business areas through the acquisition of new
customer segments. Our goal is to create a "NEW BASIC AIRLINE" that provides

China-specific LCC

200.0*

200
190
180

FY2022

2025*Plan as of May 2, 2023 publication

・Contributing to the establishment ofa sustainable distribution network*

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

・In response to the 2024 logistic problem in Japan,, we will begin tooperate cargo-only flights in cooperation with Yamato Holdings, Inc.
・Utilizing the assets and know-how of both companies, we will attempt
to solve social issues centering on logistics, such as securing stabletransportation capacity, maintaining and improving service quality, andrevitalizing local communities.
* Aircraft refurbished from passenger to cargo planes

Growth Strategy

network from Japan to North America and Southeast Asia. This will contribute toexpanding and growing inbound traffic from China.

210■ Boeing 767-300ER BCF Aircraft*

Cities in China
Set to become the world's
largest airline market in a
few years

220

Compared to revenue
plan of FY2023*

JAL to Launch Cargo Flights for Further Growth in the Cargo and Mail Business■ Airbus A321ceo P2F Aircraft: As the JAL Group's medium- and long-haul LCC, we will expand ourwill leverage Spring Group's sales and brand capabilities to contribute to the・By operating our passenger aircraft, our Boeing
767F and cargo aircraft belonging to othercompanies, to achieve a level of revenue higher
than pre-COVID-19 times.
・Maximize revenue across the network byusing IT to determine freight rates and space
management
・Building a system for the commencement ofdomestic cargo operations

224.7

・By building strong partnerships with logistics partners, our company will begin operating our own cargo flights on both international and domestic
routes, focusing on a network strategy based on stable and high-growth demand, such as e-commerce and home delivery. This new businessmodel reduces business risks from fluctuations in demand and market conditions.
・We will attempt to secure profitability by offering flexible charter and temporary flights to meet customer needs.

Medium-term Approach Route Network Expansion in Asia, North America, and China

gradually expand the network to China's metropolitan and regional routes, we・Cargo flights by our passenger aircraft andcargo aircraft by other companies. Revenue will
surpass pre-COVID levels through flexible unit
pricing and securing cargo volume
・Development of an environment to transporthigh value-added goods and fresh goods
Example: Pharmaceutical dedicated temperature
controlled warehouse at Narita Airport(JAL MEDI PORT), one-stop logistics
serviceMedium-term approach

Number of aircraft : 16-20 aircraft: In line with the recovery of the market in the Japan-China route, to

230

2025

-5
-10

* Excluding Jetstar Japana high quality of service at the best value for the money paid.

(bn. JPY)

Jetstar Japan:

FY2025 Target

FY2023

貨物郵便収入Cargo
and Mail Revenue

Implementing New Business Models
Towards Solving Social Issues

The JAL Group Value Creation Story

ZIPAIR:

FY2025 Target

FY2023

Capturing Demand through Active Supply andPromoting New Logistic Businesses

Progress Towards Achieving FY2025 Targets

Introduction③ LCC●2024 logistics problem of Trucking Industry

External
environment

The 2024 logistics problem is the issue of labor shortage and cost
increase that may occur in trucks and transport companies following
the revised Labor Standards Act.

●Secure transportation capacity for growing EC

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
logistics problem.

●Steadily implement the Medium Term Management Plan

: We will certainly capture the recovering domestic tourism demand

Sustainability

To accelerate business model reform, we will pursue growth initiatives.
High-speed air transport solutions can help solve the 2024 logistics
problem.

and drive the growth of the domestic LCC market, especially in the Tokyo
metropolitan area. We will also resume international flights in order to captureadvantage by introducing the most environmentally friendly aircraft.
In addition, using Narita Airport, where the three LCC companies are based asa hub, we will utilize the strong network that each has to promote the flow ofpeople between the world and Japan. This will contribute to the expansion of

Build a sustainable logistics network throughfreighter operations

Best LCC domestic route
network from Tokyo
metropolitan area

the strong inbound demand from Asia. We will strive to improve our competitive

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

Boeing 767 300ER BCF (Image)

Airbus A321 ceo P2F (image)Markets with stable profitability

inbound traffic and the creation of international transit demand.

Voice

Voice
Towards the Return and Increase of Flights on the Chinese Routes
SPRING JAPAN is making concerted efforts to restore and increase the number of flights to China.
marketing activities in which I am in charge, such as our efforts to increase the sales share of our official website, package sales
including connections with JAL Group LCC companies, and various marketing initiatives in cooperation with JAL's China branches.
Going forward, we will actively expand our Chinese route networks and use our pricing and marketing strategies to attract more
XU Zhihan
Sales and Marketing Department
SPRING JAPAN Co., Ltd.

57

JAL REPORT 2023

customers, thereby contributing to regional revitalization through inbound travel to Japan and improving the JAL Group's profits.

YOSHIZAWA Yuto
Senior Staff
Cargo Route Marketing Route OfficeTOP

JAL REPORT 2023

Data Section

As an LCC, we are not only striving to maintain and improve our price competitiveness, but we are also preparing for the sales andSolving Social Issues Through Our Own Freighter Operations
In order to further expand out Cargo and Mail business, we will begin operating our own cargo fligihts based on our strategy of steadily
capturing demand through strong cooperation with logistics companies. Under our mission of never stopping logistics, we proposed
during the COVID-19 pandemic, we were able to secure supply in line with customer needs by operating cargo flights with our own
passenger aircraft and chartering cargo planes. This experience has made us aware that our responsibilities are to ensure a stabletransport capacity and to maintain supply chains. In preparation for the launch of our own cargo aircraft, we are currently studying our
flight schedule to meet customer needs and coordinating with airports and other relevant parties to establish a handling system.
The new cargo operations will contribute to solving social issues in response to the expected growth in e-commerce and airtransportation demand stemming from the 2024 logistics problem, and contribute to the sustainable development of society throughthe growth of our Cargo and Mail business.

58

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

Business Strategy
3.3.Business
Strategy

4. Financial Strategy(1) Business Model Reform(2) DX Strategy(3) Human Resources Strategy(4) GX strategy② Air Mobility/MaaS① Mileage and Lifestyle

Facing the Challenges of Local Mobility Through Realizing a Future where People and Goods Travel without Restraint

Growth Through Expansion of Mileage and Lifestyle Services that Create New Connections

In order to provide new value in mobility, we will utilize the JAL Group's know-how on aviation safety topromote the social implementation of drones and eVTOL. In addition, we will expand JAL MaaS, which
provides seamless travel to destinations by connecting with diverse transportation services, in an effort
to create a new regional flow of people.
Progress Towards Achieving FY2025 Targets
FY2022

Progress Towards Achieving FY2025 Targets
FY2022

Promoting the JAL Mileage and Lifestyle Initiatives to expand the savings and making use of mileage
to realize the well-being of customers and society and to lead business model reform

Profit Target Business area expansion⇒Profit increase(bn.JPY)・Expansion of services in non-airline domains
JAL Denki, JAL Mortgage, JAL Pay
・Strengthening EC Businesses
Making JALUX a consolidated subsidiary
・Increase the attractiveness and value of mileage
Partnership promotes cross-exchange with majorcommon points
Issuance of Green Life Mileage

・Enhancing awards and expanding the membership
base(Introduction of new status program)・Expanding the e-commerce business by utilizing
our member base(launch JAL Mall)・Continue to strengthen mileage partnerships in avariety of areas

Note: Mileage, Finance andCommerce Total

50.0

2022

2023

Medium-term Approach

Utilizing JAL Group Know-how to Establish an Operation Platform and Provide New Value in Mobility

Sustainability

and・We will realize a world where our customers will be able to access one-stop service with a single smartphone by expanding our existingtransportation services between airports and collaborating with all modes of transportation from origin to destination, utilizing our aviation expertisein DX and PR.
・Taking the opportunity of the Expo 2025 Osaka, Kansai, we will promote the commercialization of eVTOL and contribute to the realization of an
exciting society and future in which people and goods can travel without restraint.

■ MaaSIn the future, we will pursue further business expansion and profit growthby combining the expansion of frequent flyer services into new fields
such as nursing care and entertainment with investment in these new
businesses. At the same time, we will launch a new status program thatwill reflect not only airline used but can also be use in non-airline domains,
as well as a new smartphone application for JMB members.

Provide diverse services in everyday life and all life stages andexpand ways to earn and use miles

Customer Touchpoints, not Just in the Sky, but in Everyday LifeWe are working hard with our co-workers daily to build attractive frequent flyer programs that can be thought of as a need to saveand use more JAL mileage not only in an inflight menu but also in everyday life. The new status program, which is scheduled to be
introduced in January 2024, will add status points that are accumulated in everyday life, such as paying with JAL cards, shopping at
JAL Mall, and participating in environmentally friendly activities recommended by JAL, as well as boarding flights.
Going forward, we are trying to find out how to encourage non-flying JAL customers to enjoy their JAL status, and how to continue
using JAL services. We are also trying to improve our business to make the system easy to understand. In order to encouragecustomers to choose JAL throughout their daily lives, we will continue to promote the Mileage and Lifestyle concept from thecustomer's perspective.

・We will expand our existing transportation services between airports, utilize our aviation
expertise in DX and promotions to realize a world where customers can use our onestop services with a smartphone by linking with all modes of transportation fromdeparture to destination.
・Focusing on the needs and challenges of travel, we will realize new travel and travelingexperiences by providing seamless baggage-free transportation and last-mile services.

Voice
New Mobility in Remote Islands

SASAHARA SaoriBusiness Development Group Grand Crew
Air Mobility Business Creation Department

For me, Amami Oshima is an island of healing with its abundance of natural resources and the warm greetings by the islanders
that cannot be found in urban areas. However, due to the declining birthrate and aging population, there are many daily issues
such as shopping, medical care, and disaster response that need to be addressed. I am currently working on an initiative to solve
regional problems using drones in the town of Setouchi, Amami. I can't forget the wonderful smiles on the children's faces when
the drones delivered ice cream, which can't be bought at shops on the island. We hope to integrate drone services into the island
lifestyle and expand a sparkling future for children into the skies.

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JAL REPORT 2023

Data Section

JAL REPORT 2023

■MaaS
• Connect with diverse transportation services to travel
seamlessly to your destination with just a smartphone■ Air mobility■ Future Initiatives

59■Air mobility• Provide safe drone operations and management
systems to support regional logistics• eVTOL to offer new traveling experiences

2025

JAL Mileage and Lifestyle Concept~make everyday life and all life stages even better with miles~

We will continue to promote the JAL Mileage, Lifestyle and Infrastructure,
which provide a variety of services in daily life and life stages. It also
expands the scene of savings and using mileage to expand our customer
base and achieve profit growth.
Specifically, we will work with our group companies to enhance thefunctionality of JAL Pay and establish an online shopping mall (JAL Mall) inorder to improve the ease and usability of mileage in our daily life.

YAMASHITA Nao
Senior Staff
Mileage・Practical use of drone service in Amami
Setouchi-cho
・Study business models to create new last-mile
projects for local logistics
・Promote preparations to realize eVTOL
operations
・Expand MaaS services in collaboration withlocal communities and existing businesses
・Realize seamless travel with the introductionof digital tickets

Contribute to the realization of a future/society where people and goods come andgo freely by connecting with new mobility.

To Promote the JAL Mileage and Lifestyle Initiative, We Seek to Ease Of Saving and Use Of Mileage and to Expand the Customer Application■ Expansion of Creating New Flow of People andContributing to Regional Revitalization Mileage andLifestyle Initiatives

Voice・Together with Amami Setouchi-cho, testing use ofdrones to support life on the island
・Development of operation control technologies
and methods to support drone operations
・2025: Selected the eVTOL operator of Expo 2025
Osaka, Kansai・JAL MaaS launches new services to pursue andarrange airport-based travel

FY2025 Targets

Growth Strategy

40.0

25.0

FY2019Medium-term Approach

39.0

FY2023

Expand the Air Mobility Market by Establishing an Operational Platform

FY2025 Targets

FY2023The JAL Group Value Creation Story

We will provide a variety of services that will enrich your daily life and expand the scene of saving and theusage of mileage outside of air travel. We will expand our customer base with a new status program thatreflects our daily use. We will also realize growth by expanding our commerce business by utilizing theknow-how of JALUX, a core non-aviation company.

Introduction

Mileage, Lifestyle, and Infrastructure

60

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

Business Strategy
3.3.Business
Strategy

4. Financial Strategy(1) Business Model Reform(2) DX Strategy(3) Human Resources Strategy(4) GX strategy

Support the Restart and Recovery of the Coming and Going of People and Goods as an Infrastructure Supporting the Entire Aviation Industry

Providing Solutions to Solve Problems by Creating Relationships and Connections through Mobility

We will support the restart of flights by overseas airlines and contribute to the revitalization of the flow ofpeople and logistics. We provide high-quality services for airports, maintenance, and cargo with the skills
and assets that the JAL Group has developed. We will also expand our market share by building a systemthat can respond flexibly to changes in demand through cooperation with partners.

We will expand our business in problem-solving solutions in response to the diversifying issues andneeds. In order to create a flow of people, we will create new travel goals, known as New Tourism, suchas workcation and Adventure Travel, and will realize well-being based on these values. In addition, we will
maximize regional value by supporting local industries and promoting attractiveness through commercial
channels to expand the relevant population.

The JAL Group Value Creation Story④ Travel and Regional Revitalization

Introduction③ Contract Business

Progress Towards Achieving FY2025 Targets
FY2022

FY2023

FY2022

Expanding Business to Meet the Demand and Capitalize on Strengths as an Infrastructure to Support
Growth in Society and the Airline Industry(Airport)
Maintenance and strengthening of the current groundhandling system through own efforts such as airport support,
recruitment, and external cooperation(Maintenance)
Wide range of support for overseas airlines in the event ofaircraft and component problems
Launch of new businesses utilizing our technological knowhow(Goods)Responding to customer needs through the provision of highquality integrated logistics services, including enhanced
pharmaceutical handling

Progress Towards Achieving FY2025 Targets

FY2025 Targets
Revenues(Airports)
Steady response to return of flights by overseas airlines, tolead a tourism-oriented nation and inbound traffic(Maintenance)
Providing a wide range of aircraft maintenance andcomponent-related technical services for flight support(Goods)Creation of a highly productive work environment andexpansion of demand capacity through warehouseupgrading to be labor-saving and improve efficiency

150%

100%

Trends in
Revenue

125
100

FY19

90

FY22

FY23

FY24

FY25

[Demand Environment] Recovery of inbound demand, needs for maintenance and technical services through return flights, and flexible response to cargo demand
Partnerships

Skills/assets

FY2025 Targets

Expanding the Business of Problem-solving Solutions by Working Together with Local Communities
to Create Relationships and Connections through Mobility

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 air transportation operations
・Build a solid supply structure in alliance with partners to flexibly respond to changes in demand trends and seek larger shares

Development of business centered on human andcommercial styles(Flow of People)
Creating a new travel style to create a populationthat is related to the region
・Advanture Travel and Sauna Travel
・JAL FURUSATO Hometown Working Holiday
・Conclude partnerships with Japan Agricultural
Cooperative Tourism, primary industries andregional revitalization businesses(Flow of Goods)
Disseminate regional attractiveness and businessexpansion and growth・Expand the number of registered municipalities
and reciprocating products in JAL hometown tax
payment
・Brand JAL Sweets Box using local ingredients・Propose Goshoin, a stamp book, at "FURUSATO(hometown) no Wa," an all-employee community(Flow of People)
To expand the new tourism product lineup, we will
provide inspirational trips and promote inboundregional attractions.
・Advanture Travel・Countryside Stays(Flow of Goods and Logistics)
In addition to the development of new products
utilizing attractive local products, the background andclimate of the products are introduced to convey thecharm of various parts of Japan and also to attract
local customers.
・J AL hometown tax payment and Travel Tax
Payment

Domestic Passenger and Cargo Trafficplus 10% from FY2019(management targets)
Growth Strategy

Medium-term Approach Building a System to Respond to the Restoring Demand and Providing High-Quality Services using JAL's Strengths

JAL's strengths

FY2023

135

50

50%

0%

+35% from
FY2019 to FY2025

Medium-term Approach Providing Solutions for Local Issues Through the JAL Group Products and Services that Lead to the Creation of the Flow of People and Goods
MRO

Cargo Warehouse

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

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

Provide comprehensive and high-quality logistics
services to meet cargo demand■Increased profitability and sustained growth■Expansion of services provided■Expansion of logistics services

・ P romote improvement of contract terms with overseas airlines・ S trengthen volatility resilience with cooperation from local
governments and other businesses・ E stablish and attract ground handling systems at regional
airports

・ I rregular handling provides extensive flight support, including
the loan of facilities and tools
・ E ngine landing gear, among others, component maintenance・ I nitiatives for new businesses utilizing technical knowledge
gained through aircraft maintenance・ E xpansion of cargo handling entrusted business mainly in hub
airports in Japan・ E nhancing integrated logistics services utilizing the locationof airport cargo warehouses・ I mprove safety and transport quality with new technologies

Create flows of people and distribution channels
Growth of society and the airline industry
Sales target+35% increase売上高目標
vs. FY2019 by FY2025

Solution Sales(JAL's Offered Solutions)Route Network
Human Resources and Customer Base

Solve Issues by Creating Relationships andConnections through Mobility
Diverse needs and issues are emerging with the growing awareness of the environment by the customers, the diversification of lifestyles due to the
influence of the COVID-19 pandemic, changes in the passenger structure demand due to changes in work styles and attitudes, the diversificationof purchasing channels, and changes in sales methods due to rapid growth in the e-commerce market. The JAL Group aims to sustainably expand
and grow its business by providing solutions utilizing its products and services through dialogue. We will use our long-established sales capabilities

Customer Touchpoints, not Just in the Sky, but in Everyday Life

to meet the diversifying needs and issues of customers.

When we were entrusted with ground handling operations by a newly serviced overseas airline at Haneda Airport, we developed a systemthat included planning and setting up education and formulating a manual for the operation at Haneda Airport. In addition, we took on thechallenge of being entrusted with the task of overseeing the entire maintenance. As part of our new challenge, we were able to make themost of the JAL Group's knowledge and experience in contracting at other airports and successfully started this business smoothly. We willcontinue to provide services that meet the demands and contribute to the development of society and the airline industry.

To address regional issues, we will provide solutions that take advantage of JAL's strengths in contributing to the creation of the flow of people andData Section

Voice

Expand contracted services

JAL's Strengths

Issues Facing Local
Communities andCustomers

Sustainability

Ground Handlinggoods, and work together with local communities to resolve issues by creating value for relationships and connections through mobility.

FUNATO Manami Customer Service Group Supervisor
JAL Sky Haneda Airport Operations Administration Co., Ltd.

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JAL REPORT 2023

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JAL REPORT 2023

62

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

Business Strategy
3.3.Business
Strategy

4. Financial Strategy(1) Business Model Reform(2) DX Strategy(3) Human Resources Strategy(4) GX strategy■ Contributing to the Local Economy Through the Creation of New Business Streams

We aim to revive the tourism industry and revitalize the local economy by

In order to create relationships and connections with local communities, wecreating new demand through the expansion of thematic and optional products,

will provide an e-commerce site for customers who use JAL Hometown Tax

including the creation and provision of attractive products centered on

Payment and local products, as well as inbound passengers, so that they canworkcation, Adventure Travel, and Countryside Stay. We also aim to respondcontinuously purchase local products. In order to make people want to visit theto diversifying needs and resolve local issues by developing inbound local

production areas, we will introduce the background and climate of the products

tours and experiential educational trips. We aim to realize sustainable tourism,

and convey the charm of various parts of Japan through local products, which

revitalize local communities, and improve well-being through relationships andwill lead to attracting customers to the area. We will also create added value by

connections created through the creation of new flows of people, in othercreating products with regional characteristics.

words, mobility.

Precious Earth

Tourism Nation

Regional Revitalization

Fulfilled Hearts

Based on the policy to "realize a prosperous and sustainable society by reducing the distance between people, things andpeople around the world", we are working to create new businesses and services for the JAL Group that can play a part in
the expansion of business areas set forth in the Medium-Term Management Plan. While actively utilizing internal innovation
platforms such as the JAL Innovation Lab and the JAL Innovation Fund, as well as external know-how and knowledge, wewill promote initiatives in a wide range of areas, from space in the distance to sauna facilities in the vicinity, whether virtualor real.

Protection of nature, cultural properties and traditional industries/Recovery of tourism industry/Revitalization of local economy/Promote the attraction ofregions and products/Expand product sales channels/Diversification of lifestyle ......

Domestic DP

Visiting Japan DP

*

Topic

Problem resolution framework

Problem resolution framework*

Public sector
collaboration

Businesscollaboration

Assets and know-how
provided by the
JAL Group*Dynamic package

×

Public sector
collaborations

×

Businesscollaborations

Provided Assets (example)

Provided products and services
Workcations

Adventure Travel

Eco Tourism

Travel Subscription

Countryside Stay

Anime Tourism

JAL Hometown Tax

Travel tax

JAL Mall (EC Mall)

Cross border EC

Creation of new demand and regional revitalization through the flow of goods

Topic

2

Connect the Real and Virtual

Connect Earth and Space

JAL aims to create people who do not live in the area but
come to work and play, and people who have relationships
with the people who live there. To this end, we see JAL'srole as creating connections and are promoting projects toform various connections with customers. We are working
to co-create special experiences and products with local
communities through digital technology, and to provide new
unique digital products by utilizing JAL assets.
Going forward, we will continue to deepen similar initiatives
and take on the challenge of creating value through newconnections between the real and virtual.

Using the JAL Group's air transport know-how and experience, we are pursuing future
space business possibilities such as space transport and space travel.
In 2017, we began a capital and business alliance with ispace, inc. In 2022, the
HAKUTO-R Mission 1 Lunar Lander, in which the JAL Group was involved in the assembly
and inspection, was launched, marking a dramatic step forward in space development.
In addition, we are participating in partnership with Sierra Space of the United States andKanematsu Corporation with the Dream Chaser® spaceplane, which is the beginning of a
new challenge in realizing space transportation from Oita Prefecture.
Looking ahead to the future, when economic activities and people's lives will spreadto outer space, we will continue to shape the JAL Group's space business in order tobecome a player in the safe and secure movement of people and goods.

KOKYO NFT is a project where you can connect withlocal experiences and specialty products.

(Left) T echnical cooperation with ispace’s commercial lunar exploration program"HAKUTO-R" (2020)(Right) D ream Chaser® space plane

Growth Strategy

Creation of a flow of people

Product development
utilizing local products

1

The JAL Group Value Creation Story

Social challenge

New Businesses Promoted Through Open
Innovation and Venture Capital

Introduction■ Creating New Flow of People and Contributing to Regional Revitalization

Created value
JAL

Regions

Creating new JAL flows

Customers

Revitalization of regional
economies

Improving customer
well-being

Voice
Challenges of Overseas Visitors to Local Areas

Topic

JAL Innovation Lab is promoting new business development utilizing advanced
technologies with various co-creation partners. Last year, we launched Tokyo
Saunist, a solution service that visualizes the rush in saunas in the Lifestyle
Area. This is an example of JAL's non-aviation business development utilizing theknowledge and network that JAL has cultivated in the aviation field as its sauna
tourism business Going forward we will promote the introduction of hot spring
facilities and create synergies with JAL's overall business, including the Mileage,
LIfestyle and Infrastructure.

JAL REPORT 2023

Training Programs for the General
Public by JAL instructors

Data Section

63

3Connect Aviation and Non-aviation Areas

Developing Outside Human Resources

The JAL Group makes use of the knowledge and experience it has gained through its
aviation business to focus on educating new university graduates. In particular, we aim
to contribute to the revitalization of the local economy and the promotion of industry by
deepening our understanding of the aviation business and fostering human resources that
contribute to the development of the entire tourism industry.
In addition, we take advantage of the know-how we have accumulated in providing
education to outsiders, such as lectures at universities, and are taking on the challenge of
expanding our education business to a wider audience.

Topic

Sustainability

HIGASHINO Hiromasa
Assistant Manager
Tourism Planning Group
Solutions Sales Promotion Dept.

As part of our efforts to attract overseas visitors to Japan, we strive to improve our travel products, which convey the appeal of theregion, and promote them to appropriate markets.
In refining our products, we aim to create products that make you want to visit Japan, where Adventure Travel in the rich nature ofJapan is one example. We will promote our products in appropriate markets, such as selling ski products at travel expositions inAustralia.
Through JAL Vacations, a dynamic package for visiting Japan, we will promote inbound tourism by selling the products we refine andsend as packages, along with airline tickets and hotel accommodation reservations.

High-precision sensors will be installed in front of the sauna room to detect
the flow of people and visualize the rush in real time.

A lecture by a JAL lecturer
at a university

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JAL REPORT 2023

64

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

Business Strategy
3.3.Business
Strategy

4. Financial Strategy(1) Business Model Reform(2) DX Strategy(3) Human Resources Strategy(4) GX strategy(2) DX Strategy ―Accelerating the Creation of New Value Using Advanced Technologies―

Introduction

Value Created Through DX Strategy■Toward the Realization of DX
With the development of technology, we have become a society that enables us to realize new services and upgrade our operations. To adapt tochanges in the business environment, the JAL Group will focus on data, AI and advanced technology, and mobile as the three elements of DX aiming
to improve convenience for customers and productivity for employees. Furthermore, by further utilizing the data accumulated through customer
experiences and daily operations, we will create a virtuous cycle of the three elements and ensure the promotion of our DX strategy.

Advanced Technology

Changes in the Business Environment and Issues
SDGs

Diversification of customer needs

AI

Robot

Transition to online purchasing

Strengthen resilience

Cloud

Remote control technology

Maintaining the production system (decrease in the labor force)

Work style reform and improvement of job satisfaction

Metaverse

Web3/NFT

The JAL Group Value Creation Story

With big data, technology, and mobile as key drivers,
our employees work with motivation and enthusiasm tocreate new customer experiences that exceed customer
expectations. We will also work to expand new businessareas and take on challenges to solve social issues andchange through DX.

NODA Yasushi
Executive Officer
Senior Vice President,
Digital Innovation Division

AI and Advanced
Technologies▶Review of FY2022

In FY2022, we completely revamped our domestic airfares andimproved our website to make it easier to understand and use. We
also expanded our application functionality to make it mobile withsame-day upgrades and waiting lists. In the non-aviation businessarea, we launched JAL Pay, a smartphone payment service, topromote the JAL Mileage and Lifestyle Concept. In addition, we
worked to improve productivity by visualizing business processes
and utilizing digital tools to improve operational efficiency. In
addition, as a new business, we conducted demonstration tests forthe commercialization of drones.

CX

Technology(Customer Experience)

Creating newcustomer experience

Operation
Process
MaximizeEX(Employee Experience)

Digital Transformation (DX)Continuous improvementof employee experience

Advanced technologies
IT Platform
Open innovation

Embracing AI and advanced technologies,
Advancing data utilization

Data
Creating an environment for
big data utilization andpromoting data-driven management

Ensure promotion of DX strategy towardrealization of the Medium-Term
Management Plan

MobileEnhance customer experience andemployee productivity through theconvenience of digital touch points

DX HumanResources

Going forward, we will use our accumulated experience tostrengthen resilience and accelerate profitability, and work tocreate new social and economic value by adapting to the changing
business environments and diversifying customer needs.

▶Direction of DX Strategy
As the importance of connections between people and local
communities has been recognized following the COVID-19
pandemic, the JAL Group is working to enhance its corporate
value through ESG strategy. JAL's DX strategy aims to provide
customers with safe and secure transportation and new experienceby challenging social issues and changes through the use ofadvanced technologies with diverse human resources, which is
JAL's strength.
In order to maximize CX and EX, which are the objectives of DX, wewill work to create new experience for customers in the CX area,
and work to create an environment in the EX area where employees
can work with high productivity while maintaining high motivation
on an ongoing basis. Maximizing EX will lead to the development of
new services and the improvement of service quality, which in turnwill contribute to maximizing CX, thereby creating an upward spiralof EX improvement.

EX

CX
Personalized Service■ Recommendations■ Customization
We use AI to highly analyze customer dataand provide products and services that matchcustomer preferences, such as in-flight services, mileage, lifestyle, and travel. In addition, applications will support customers in all
situations so that they can freely choose
meals and necessary services.

Stress-Free, Anytime, Anywhere■ Enhancing Digital Touch Points■ JAL SMART AIRPORT
We will work to create smooth and consistentexperience by enhancing digital touch points
through the use of remote chatbot technology
and the expansion of application functions,with the aim of realizing stress-free services
for customers.

Improving Productivity and Value Creation■ Improving Productivity and Operational Efficiency■ Improving Employee Satisfaction

Sustainability

JAL was selected as one of the DX Stocks 2023 by the Ministry of
Economy, Trade and Industry, the Tokyo Stock Exchange, and theInformation-technology Promotion Agency.
In addition to JAL’s DX promotion system, the selection was basedon recognition of the deepening of existing airline services and thefull launch of initiatives in new business areas.

Maximize

Human
Resources

Growth Strategy

In order to promote ESG strategy that create connections throughAir Transportation and solve social issues, DX as stated in theMedium-Term Management Plan is aimed at maximizing Customer
Experience (CX) by providing new experience and the best
services to customers, maximizing the Employee Experience (EX)by improving business quality and productivity, and expanding
business areas.

Customer
Journey

We aim to maximize the value of the customer
experiences and improve the productivity of
on-site operations through the use of self-service and mobile procedures, and to improvethe efficiency of indirect operations throughthe use of End User Computing (EUC).
Through these measures, we aim to maximize
our employees' ability to create value andimprove their job satisfaction.

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JAL REPORT 2023

Data Section

To this end, it is essential to utilize advanced technologies such asdata and AI, and to foster the IT infrastructure, open innovation,
and DX human resources that support them. Specifically, we aim tocreate new value and businesses (p. 64) by strengthening security,
enhancing our database, and utilizing the JAL Innovation Fund andthe JAL Innovation Lab, which are innovative platforms. We will also
accelerate DX throughout the JAL Group by cultivating personnel
capable of promoting DX and new business creation throughout theentire company.

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66

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

Business Strategy
3.3.Business
Strategy

4. Financial Strategy(1) Business Model Reform(2) DX Strategy(3) Human Resources Strategy(4) GX strategy

Aggressive Human Resource Investment-

SAEDA Naohito

Human resources that respect diverse values, challenge new value creation, and drive change

Issues to Specifically be AddressedInternal environmental
changeIssues to Specifically be AddressedEnlargement of thegrowing business area

Increased value creativity

in human resources in order to realize the "improvement of value creativity"

Business
structurereformFewer and more skilled humanresources for existing businesses

Drastic improvement inproductivity

by the COVID-19 pandemic and accelerating business model reform, wereform by expanding new business areas such as the Mileage, Lifestyle,divided our efforts into four elements to realize "creation of new value" andand Infrastructure business through "improvement of value creativity" and"continuous improvement of productivity": "allocation of human resourcesby "drastically improving productivity" in the existing air transport business,to growing business areas," "recruitment of diverse human resources andwhich is our main business. By doing so, we aim to create a virtuous cycle

provision of growth opportunities for employees," "business process reform,"that leads to further value creation by improving corporate value and returningand "basic initiatives."

the results to each employee, who is our human capital.

result of the expansion of job postings under the open recruitment system▶Strategies and KPIs

and the promotion of the active participation of women, the allocation

Diverse human resources are the JAL Group's greatest strength, and itsof human resources to growing business areas and the ratio of female

philosophy has not changed. In formulating the human resources strategy for

Human capital investment
Create a sustainable business environment and return the results to employees

Key measures and KPIs to solve problems and bridge the gap between the human resources vision
Measures
Human Resources Portfolio

managers were on track to meet the targets for FY2025. On the other hand,

Rolling Plan 2023, we adopted the concept of human capital management,

sales per capita was -2 percent in FY2022 (compared to FY2019), comparedwhich maximizes the value of human resources and improves corporate

to the target of +15 percent in FY2025 (compared to FY2019).

value, in order to reinforce this philosophy.

The ratio of employees with high engagement was -2.7 points (comparedIn the "Three Perspectives and Five Common Elements Required for Human

to FY2019) in FY2022, compared to the target of +10 points in FY2025

Resources Strategy" of human capital management, "Human Resources(compared to FY2019).

Portfolio," "DEI," "Career/Reskiling" and "engagement" as well as "working

Based on these results, and in order to respond to new internal and externalstyle independent of time and place" are listed as the five common elements

issues, in FY2023 we will deepen our efforts to materialize human capitalof human resources strategy. Based on the belief that the human resourcesmanagement.

portfolio and the activation of individuals and organizations ("DEI", "Career/▲

Reskilling" and "Engagement ") are particularly important in the promotion of

FY2022 + 2,200 employees

focusing on these four elements, and specific measures are formulated andrealizing value creation and growth, and positioned human resources strategy

implemented for each element.

as one of the business strategies to promote ESG strategy.

Although each element is related to the other, measures for internal

In promoting our ESG strategy, we first clarified the JAL Group's humanenvironmental change are mainly assigned to "Human Resources Portfolio"

resources vision as "Human resources that respect diverse values, challengeand "DEI," and measures for external environmental change are assigned to

new value creation, and drive change". Next, in the face of the rapidly"Career/Reskilling" and "Engagement".

changing environment, we recognized two particular issues that need to

In addition, we have set KPIs for each element so that we can quantitatively

be addressed. Inside the JAL Group, there was a lack of opportunities forgrasp the ideal state and the current state of affairs. Based on the results

diverse human resources to reach their potential.

of each KPI in FY2022, we have formulated various measures to close theTurning our attention to the outside world, we recognized that it will be

gap. In order to achieve our goals, we will backcast what we need to do anddifficult to secure human resources in the future as the birthrate declines andexecute with a sense of speed.

Career/Reskilling

Engagement

KPI
Manpower allocation to
growing business areas

3,500 employees(compared to FY2019)

FY2025 +Ratio of female
managers

30% at the end of

Increase in per capita sales
FY202515％

FY2025

improvement(compared to FY2019)22.8% at the end of

FY2022 -2%(compared to FY2019)▲

FY2022▲(compared to FY2019)

Percentage of highly engaged
employees

10

FY2025pt improvement(compared to FY2019)▲

FY2022 -2.7pt (compared to FY2019)

Concept of Investment in Human Resources
At the JAL Group, we will accelerate the development of a system that supports the active participation of employees, provides educational andtraining opportunities that contribute to the improvement of individual abilities, and develops a personnel evaluation system and a compensation
system that properly evaluates and rewards challenges. We will continue to actively invest in human resources with the aim of improving value
creativity and drastically improving productivity.

Data Section

The Rolling Plan 2023 positioned ESG strategy as the top strategy for

DEI

Sustainability

ESG strategy, the JAL Group's human resources strategy was formulated by

Growth Strategy

and "drastic improvement of productivity." We will accelerate business model▶Integration with Management Strategies

Difficulty in securing human resources under
declining population in Japan

In order to cope with this severe environmental change, we will actively invest

In FY2022, with the aim of responding to the environmental changes caused

For each element, we set numerical targets to be achieved in FY2025. As aExternal environmental
changeBased on the JAL Philosophy, Wellness Promotion and Health Management, we develop human resources who can take on challenges andfoster a culture that values challenges.

Executive Officer
Senior Vice President,
Human Resources Division▶Review of FY2022

Lack of opportunities for diverse human resources
to reach their potential

The JAL Group Value Creation Story

In promoting human capital management, we will work together
to improve value creativity, drastically improve productivity, andinvest in human resources to achieve this goal.
We aim to create a virtuous cycle that leads to further value
creation by creating an environment in which we can conductbusiness on a sustainable basis and by returning the results toeach employee.

JAL Group's Human Resources VisionIntroduction(3) Human Resources Strategy - Increasing Value Creativity and Productivity throughthe population ages.

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JAL REPORT 2023

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68

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

Business Strategy
3.3.Business
Strategy

4. Financial Strategy(1) Business Model Reform(2) DX Strategy(3) Human Resources Strategy(4) GX strategy

In order to realize business model reform, we will acquire, nurture, assign and treat personnel with diverse knowledge
and experience to support new business areas and personnel with high expertise in the aviation field to support
existing business areas. We will expand the recruitment of experienced personnel, expand the scope of areas andpositions covered by the performance-based remuneration system, and introduce a personnel wage system thatapplies to highly specialized personnel essential for safe operation, thereby placing personnel in optimal positions
and build a new human resources portfolio for the JAL Group.

Overseas employees working in JapanThe JAL Group Value Creation Story

Priority and Strategic Measures

In order to enable employees, recruited from regions outside Japan, to play an even more activerole, we are making efforts to relocate employees to locations outside of Japan, as well as to foster
the appointments of employees by providing seminars and training programs specific to eacharea. As of April 2023, approximately 30 percent of our employees held important positions, suchas District Managers and Business Directors. We, however, intend to increase this number during
the Medium Term Management Plan period.
The number of staff working in Japan is expected to reach 50 employees by 2025. The
opportunities to expand the range of work experience will be increased even further. The contacts
between our diverse employees are expected to grow, which is expected to develop global
mindsets.

Introduction▶Actively Recruiting and Appointing from Regions Outside Japan① Human Resources Portfolio▶Promoting Challenges by Employees with Disabilities■Acquisition and Placement of Human Resources to Realize ESG Strategies▶Recruitment and Promotion of Employees with External Experience
Many experienced employees are active in areas where high knowledge is required, such as business creation and digital promotion, and are working to create new value by
utilizing diverse external knowledge to promote JAL's growth strategy.
Many employees are promoted to the management level and are involved in important decisions at the company. In order to further promote value creation by utilizing internaland external knowledge, we will further promote the promotion of employees who are hired with experience by making fair and impartial appointments based on personnel.
In addition, JAL Next Career GATE was launched as a new platform for recruiting experienced employees, which resumed in 2022, and began recruiting throughout the year.
We will continue to make further efforts to recruit experienced personnel through the development of various recruitment methods with the aim of recruiting personnel with ahigh level of expertise and diverse knowledge and experience.

Shops servicing coffee and light snacks, and shoeshine services are popular among our
employees. These shops provide opportunities for employees with disabilities. They can use theirtalents and abilities to play active roles. It also provides opportunities for our employees to deepen
their understanding of DEI.
On the Sustainable Charter Flight, employees with hearing impairments served as cabin support
staff to express in-flight announcements in sign language. We will continue our efforts to create
opportunities for career advancement that are not limited to conventional stereotypes and tosupport career development that can be challenged by anyone regardless of disability.
Shoeshine services for employees▶Human Resources Placement in Growing Business Aeas
The JAL Group aims to expand growing business areas such as LCC and Mileage and establish a personnel system to diversify and maximize business income and expenditure.
In FY2025, we will increase the number of personnel allocated to growing business areas by +3,500 employees (compared to FY2019) through the transfer of personnel
from existing areas, mainly FSC, to growing business areas and the recruitment of personnel with diverse knowledge and experience.

Voice

② DEI

Priority and Strategic Measures■Measures to Deepen Diversity▶Promotion of Women in the Workplace

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JAL REPORT 2023

■ Number of female managers (person)
Proportion of female managers (%)

(%)

1,365

(persons)
1,300

30.0%

1,278

28

1,200

26

1,100

1,053

900

700

24

983

1,000

800

30

846

799

End of
FY2015End of
FY2016882853

15.6% 16.3%

21.9%

22.8%

19.5%

End of
FY2017

16.8%

End of
FY2018End of
FY2019

20
18

18.4%
16.3%

22

16
End of
FY2020End of
FY2021

End of End of
FY2022 FY2025

14③ Career/Reskilling
The work roles of our employees are changing with the optimization of human resource portfolios dueto the revisions in business structures and the rapid transitions in the social environment. To respond tothese changes, we support career development in job autonomy and reskilling. We support our employees
by implementing a job autonomous career development system, such as a human resource systemfor employees who want to nominate themselves to the department they wish to work in and a system
where the employees can use their skills and abilities in an in-house second job system, or providing DX
education and reskilling for a second career for our employees to shape their own careers responsibly.

Priority and Strategic Measures■Developing Human Resources to Realize ESG Strategies

Data Section

We are continuing our efforts to achieve our management goal of 30 percent
female managers in the JAL Group. There were 22.8 percent as of March 2023.
In addition, the ratio of women in organizational management positions basedon the provisions of the Act on the Promotion of Women's Participation andAdvancement in the Workplace is 28.4 percent.
As for the promotion of women to managerial positions, we conduct agespecific training for the purpose of job autonomy in stages from their twenties.
To nurture the initiative to chart their own careers at an early stage, we also
conduct study sessions for those returning to work from administrative
leave, and other initiatives to ensure that women's career advancement is notinterrupted by life events. At the same time, we have also established a system
to learn comprehensively about the qualities of leaders that are required for eachlevel of management, from the first to the senior management.
We are promoting the placement of female managers across job categories,
including the appointment of six out of twenty-four female managers as flightattendants to the general managers of sales branches in various regions.

We actively promoted women to executive positions by utilizing the Pipeline List
to nurture and promote women according to their individuality and aptitude. In
April 2023, JAL newly appointed three female executives, bringing the ratio of
women to 22 percent in the management.

I am deaf, but I was wondering about the lack of opportunities for employees to participate in DEI promotion.
By participating in the Job Autonomy Development Training Program by the D&I Promotion Group of the
Human Resources Strategy Department, I thought that I would be able to share my opinions as a personwith disabilities and also make use of my new knowledge and experience. In the barrier-free mindset project
I worked on, I eliminated barriers between the disabled and the abled by devising ways to communicate.
In the future, I would like to continue to engage in work that can create a climate of respect for others andacceptance of diversity regardless of our traits.

Sustainability

In order to improve corporate value over the medium to long term and to enhance the sustainability of our business, we willtransform from a company with highly homogeneous human resources to a highly diverse company with human resources withdiverse knowledge and experience such as experience, sensitivity, values, and expertise.
We will deepen diversity and create new values by intergroup secondments, the active recruitment of foreign employees in Japan,
and by expanding the employment of people with disabilities, through the creation of an environment where everyone can work withsatisfaction.

KONISHI Kenta
Tennozu Pioneer GroupJAL Sunlight, Inc. General Affairs Center

Growth Strategy− We support diverse employee challenges through the Job Autonomy Development Training Program, anintern type training program launched in 2022. Employees with disabilities can also participate in this program
to take on new challenges.

■Measures to Enhance Value Creativity of Human Resources Acquised and Placed▶Performance-based Remuneration System
Since the JAL Group expects high results from Group companies that are primarily responsible for business model reform, we introduced a performance-based
remuneration system in FY2022 for the positions of Presidents in some Group companies. This will encourage new value creation, such as business expansion in new
business areas and diversification of revenue sources.
In FY2023, the system will be expanded to other Group companies and other positions, not limited to the position of the President, in an effort to realize business model
reform.

Helping Employees Develop Job Autonomy▶DX Human resources Development
We will conduct basic DX education for our 36,000 Group employees in order to build services and business models that meet the needs ofcustomers and society through the use of digital technology as well as to develop DX human resources that create new value by transforming oldinternal processes and organizational culture. In addition, we will provide DX education tailored to each level, including management and business
staff.

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70

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

Business Strategy
3.3.Business
Strategy

4. Financial Strategy(1) Business Model Reform(2) DX Strategy(3) Human Resources Strategy(4) GX strategy▶Developing Autonomous Employees

Introduction④ Engagement

The JAL Group has been conducting various activities to train managers to change their mindset and provide a place for practice toapply "JAL OODA", which is a form of autonomous thinking and action. One of these activities, W-PIT*, is an in-house venture groupthat enables employees to take on challenges of co-creation in different industries and to connect their excitement to business.

In order to maximize the power of diverse human resources, which is the JAL Group's greatest strength, we will create a highly engaged
work environment where each employee feels needed and rewarded.
We will improve employee engagement by implementing various measures such as the Human Resources Portfolio, DEI, and Career/
Reskilling. Also by promoting organizational revitalization through JAL Philosophy and Health Management. We will achieve a virtuous
cycle of increasing engagement by increasing productivity and appropriately transferring the results to human capital investment.

In addition, we continue to hold in-house entrepreneurship auditions Sozo no Tsubasa (Wings of Creativity) for employees to open
new business areas. In addition, in the Career Challenge, an internal recruitment program in FY2022, 23 divisions accepted 33 people
who had been selected internally to develop autonomous human resources.
*Abbreviation for Wakuwaku (exciting) Platform Innovation Team

▶Career Design

The JAL Group Value Creation Story

In order to encourage employees to develop their own careers, we have created opportunities for employees to think about their careers by disseminating information
through the CAREER Page on the company intranet, holding the JAL CAREER TALK LIVE where employees active in the JAL Group discuss their careers, and introducing
career development training. We also introduced a career consulting interview where employees can discuss career development with a nationally qualified internal career
consultant.

■Understanding Engagement Status▶Employee Engagement Survey

We will continue to create an environment where employees can form their own careers and aim to improve employee engagement.

Topic

The JAL Group regularly conducts engagement surveys as the basis for achieving a virtuous cycle in which productivity increases as a result of
increased engagement and business activities, and the results obtained are appropriately transferred to human capital investment to further increase
engagement.
In the survey, we conduct a company-wide survey of organizational activity, in which we identify questions that lead to engagement, such as careerand remuneration, and measure the percentage of employees who respond favorably to these questions.
FY2022 results are -2.7 points (compared to FY2019), which is far from the FY2025 target of +10 points (compared to FY2019). In order to improveengagement, the JAL Group believes that it is important to promote the aforementioned measures on the Human Resources Portfolio, DEI, andCareer/Reskilling, as well as the following measures on the Promotion of Diverse Workstyle, Health Management, and Occupational Health and
Safety Activities. By accelerating these measures, we will improve engagement.

Internal Career Consulting

Six employees with national qualifications in career consulting, selected through internal recruitment, provide support todeepen and clarify the awareness of career development by encouraging psychological self-insight of the counselor based on
expert knowledge such as career theory. A counselor said, "I now have a clear idea of what I value and focus on, how I want
to work in the future, and what I need to do in order to do so." We also plan to expand to JAL Group companies in the future.

JLCAREER Portal▶Expanding Training Programs
boundaries of companies and occupations within the Group. In addition, we train leaders and safety and service professionals through specialized training programs foreach job category and provide seminars and training programs specific to each company. We will continue to provide opportunities for employees to grow and learn inorder to build job autonomy. We will nurture human resources that will serve as a driving force to accelerate the diversification of the business areas listed in Medium Term
Management Plan.

Basic Education and Training System of the JAL Group in FY2023
Manager

Next generation training

New Employee
Orientation

Mental health management training for organizations

Training is provided according to each company's career path

Appropriate age group
25 to 34 years old

Airline Business Training
Time Management Training

Career development training 4

Appropriate age group
35 to 44 years old[Business Skills Training]
Logical-thinking training
Facilitation training

Appropriate age group
45 to 54 years oldLife Plan Seminar
Appropriate age group
55 to 59 years old

Problem-solving training
Diversity Equity Inclusion (DEI) Training

Support for personal development (Distance learning courses, learning English, among others)
DX Human Resources Basic Education and Professional Education▶Optimizing Working Hours
The JAL Group aims to be a company where everyone can play an active role,
including employees with time constraints such as childcare and nursing care.
For this reason, we have introduced a scheduled annual paid leave program andoptimized working hours. In spite of the recovery in passenger demand andvarious projects, there is an increase in workload particularly in the supporting
departments, however, with the implementation of a flexible workstyle, thepercentage of employees taking annual leave improved to 81.0 percent in FY2022(74.5 percent in FY2021).
On the other hand, the average monthly overtime and holiday working hours per
employee was 10.5 hours (FY2021: 9.9 hours), so we will continue to strive for
optimized working hours with flexible workstyle.

Leader's Workshop▶Health Management■Developing Human Resources to Support the Organization▶Development of Management Human Resources and Next Generation Leaders

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JAL REPORT 2023

20Management human resources and next generation
leaders training

79.0%

16
12
8

100

86.0%

8.5

9.5

71.5%
74.5%
9.9

80

81.0%

60

10.5

8.0

40
4.0

4

2018

2019

2020

2021

*Japan Airlines Co., Ltd. only

2022

2025
Target20
0

For the diverse human resources to fully display their individuality and abilities, it is essential to create a safe and secure work environment and topromote the health of employees and their families. The JAL Group Health Promotion Project "JAL Wellness" was launched in conjunction with theMedium Term Management Plan in 2012. Currently, JAL Wellness 2025 continues to promote the health of employees and families based on the five
major indicators such as lifestyle-related diseases, cancer, mental health, tobacco control, and women's health.
In particular, we consider female-specific health issues to be most important as it is directly related to productivity improvement and organizational
revitalization. We have introduced a program to address symptoms of menstruation and menopause using femtech in collaboration with LIFEM Inc.
We are working to improve the health literacy of all employees toward "women's health" through the use of online medical services and the active
implementation of seminars.
With the "Occupational Health and Safety Activities" at the workplace and the "JAL Wellness" between employees and their families, we will provide
a stage for each member of the JAL Group to actively perform and shine.

Data Section

In order to nurture management human resources who are able to set the direction ofbusiness and steer management in a strategic and speedy manner despite rapid changes
in the social and business environment, and next generation leaders who understand themission of management, and respond flexibly to all changes while driving diverse businessareas, including FSC, we provide opportunities to work in other companies, study and train
outside JAL, and cross-industry exchanges for each working level. Each employee bringsback the knowledge and what they learnt during their employment in outside companies andapplies the schooling to transform it into their business structure and create new values.
We will continue to select better programs and expand the scope of our programs.

■ Average monthly overtime/working hours on holidays per employee
Percentage of annual paid leave applicants (%) 100%0

Safety education and safety awareness seminars
JAL Philosophy Workshop

Overtime Work and Annual Paid Leave Applicants*

Sustainability

Appropriate age group
Up to 25 years old

Career development training 2

Career development training 3

The JAL Group promotes diverse workstyles for everyone to play an active role.
In FY2022, looking ahead to the close of the COVID-19 pandemic, we established a basic policy for hybrid work, which
combines office attendance and telework, so that employees can choose where they work while being conscious of productivity
and communication in accordance with the content of their work.
In addition, we established guidelines for second jobs to create an environment in which employees can gain new insights andhuman networks through their other job.
The JAL Group will continue to promote diverse workstyles in order to foster an environment in which diverse human resources
can work actively.

Vice PresidentManager Follow-up Training
Area Manager training programs

D&I Lab ProjectCommunication Leader Training (CLT)Actvities
training

Hierarchicaltraining

New manager training

Career development training 1
Career improvement
reskilling

Director

Factor Class■Improving Engagement▶Promotion of Diverse Workstyles

Growth Strategy

Based on JAL Philosophy, we have established JAL Group's Human Resources Vision as our basic concept. We conduct personnel exchanges that transcend theGeneral employment

Priority and Strategic Measures

For details, see the following page.

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72

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

Business Strategy
3.3.Business
Strategy

4. Financial Strategy(1) Business Model Reform(2) DX Strategy(3) Human Resources Strategy(4) GX strategy❷Health Management for Flight Crew Who Supports Flight Safety

JAL was recognized as a brand in the 2023 Health & Productivity Stock Selection for the fifth time. Twenty-four

In addition to the annual physical examination, the flight crew also undergo annual medical examinations as stipulated by the Civil Aeronautics Act,
which is under the jurisdiction of the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). The Flight Crew Wellness Promotion Department
follows up on the medical examinations and the results of the examination. In addition, an industrial physician always meets with the flight crew oncea year and conducts a medical interview, as well as confirming the physical and mental health of each individual and providing support for healthmanagement. Depending on the results of the medical examination, the flight crew may need to take a leave of absence based on the standards. In
this case, the flight crew will concentrate on medical treatment, among others, and will return as a flight crew through the return process prescribedby the MLIT and the company after confirming that the health condition has been restored and the numerical value has been improved. After
returning to service, the Flight Crew Wellness Promotion Department will carry out follow-ups as necessary.

companies in the JAL Group (20 last year) were recognized under the 2023 Certified Health & Productivity Management
Outstanding Organizations Recognition Program. They were highly praised for working actively under the strong
leadership of the Chief Wellness Officer（CWO）, Wellness Leaders in the workplace and further initiatives to improve
women's health, literacy on health through better use of the website, and mental health care during the pandemic.

Uterine cancer

Stomach

Women’s
Gastric cancer screening ratio [employees aged 35 and above]
health61.7%
66% or above
Re-examination ratio
70% or above
46.4%
Gastric cancer screening ratio [spouses aged 35 and above/special retired insured persons]
31.8%
46% or above
Re-examination ratio
58.8%
70% or above
Colorectal cancer screening ratio [employees aged 35 and above]
73.1%
77% or above
Re-examination ratio
Health literacy
24.7%
70% or above
Colorectal cancer screening ratio [spouses aged 35 and above/special retired insured persons]Wellness activities
39.5%
56% or above
Re-examination ratio
70% or above
24.6%

Mental health

Percentage of people with high stress [employees]
10.8% Less than 6%

Smoking

Male employees
25.4%
Less than 22%
Female employees
4.3% Less than 3.4%

Lifestyle(specific healthcheckupquestionnaire)

Breast cancer screening ratio [women employees aged 18 and above]
66% or above
62.0%
Re-examination ratio
70% or above
57.9%
Breast cancer screening ratio [spouses aged 35 and above/special retired insured persons]
34% or above
32.3%
Re-examination ratio
65.1%
70% or above
Uterine cancer screening ratio [women employees aged 18 and above]
57% or above
57.9%
Re-examination ratio
70% or above
60
57.8%

Topic

JAL Athletes Taking on the World Challenge

The JAL Group supports all athletes, including JAL Athlete Employees, by combining the image of athletes believing in themselves andcolleagues with JAL's aim to become "the world's most preferred and valued airline group."
At the Budapest 2023 World Athletics Championships, KITAGUCHI Haruka, a female javelin thrower, won the first gold medal in Japanesewomen's field history. We will continue to support our athletes and para-athletes who are taking on global challenges. JAL Athlete
Employees travel around Japan to launch the JAL Athlete Academy, which provides children with advice on how to enjoy sports and improvetheir athletic skills. We will work together with local residents to inspire and to experience the charm and enjoyment of sports as well as toexperience the attraction of areas they have never visited before.

Uterine cancer screening ratio [spouses aged 18 and above/special retired insured persons]
34% or above
27.9%
Re-examination ratio
70% or above
47.0%
Women with excessively low BMI [women employees under 34]
29.5%
Less than 22%

Growth Strategy

Colon

Cancerscreening

Obesity ratio [all employees]
19.3% Less than 17%
Specific health checkup ratio [families]
40.7%
60% or above
Specific health checkup ratio [employees, families, special retired insured persons]
72.5%
74% or above
Specific health guidance implementation ratio [employees]
49.2%
50% or above

The JAL Group Value Creation Story

Lifestyle-relateddiseases*FY2022 actual value in the frame, FY2023 target value outside white frame (FY2021 performance of specific health checkups and specific health guidance)

Breast cancer

JAL Wellness 2025 KPIs

Introduction❶JAL Wellness 2025 Initiatives

Percentage of e-Learning participants [employees]
65% or above
67.7%
Percentage of wellness activities by company and regions [employees]
70% or above
60.4%
Regularly exercise [employees]
60% or above
58.7%
Restful sleep [employees]
79% or above
67.7%
Moderatio eating speed [employees]
66% or above
64.7%
Consumption of alcohol within the recommended Government Guidelines [employees]
89.4%
89% or above
JAL Athlete Academy in Amami

Sustainability▶Occupational Safety and Health Activities
The JAL Group strives to ensure workplace safety and prevent industrial accidents by steadily implementing "Occupational Health and Safety
Management Activities" in all of its business areas, for all our active employees, as well as our contractors and partners.

❶Occupational Health and Safety Policy●We will strengthen safety and health systems in the JAL Group's business sites, for all our employees, working contractors and partners.
●In accordance with relevant laws and regulations, each workplace appoints a general safety and health manager, an industrial physician, a safety
manager, and a health manager according to the nature of the business and the number of employees. Also including employee representatives, laborand management work together to promote occupational safety and health activities, at the Safety and Health Committee and the Health Committee.
●In particular, in departments such as operations, cabin, maintenance, airports, cargo, loading and unloading, maintenance of vehicles dedicated to
ground operations, and catering, we will set up departments and personnel in charge of safety and health, conduct risk assessments, share safety

Data Section

hazard cases, and continuously implement PDCA through the Occupational Safety and Health Management System to prevent recurrence andreduce risks.
●The ultimate goal of the JAL Group is to achieve zero industrial accidents. To achieve this goal, each business site sets specific action plans forindividual issues, sets priorities and quantitative targets, and effectively conducts the PDCA cycle.
●This occupational health and safety policy is formulated by the JAL Wellness Promotion Committee, which consists of an Executive Officer in eachbusiness area. Led by Chief Wellness Officer (CWO), this policy serves as internal regulations such as the "Safety and Health Regulations" andguidelines for occupational health and safety activities at each site.
73

JAL REPORT 2023

KITAGUCHI Haruka, a female javelin thrower who
won the gold medal at the World Athletics
Championships in Budapest 2023.

JAL Athlete Employee. From left to right: YACHI Sora (Ski/Nordic Composite), KITAGUCHI Haruka(Athletics/javelin throw), KANO Koki (Fencing/Epe), TOBE Naoto (Athletics/High Jump), DOI Anna
(Athletics/short-haul Run), YAMAMOTO Ryoma (Athletics/Triple Jump), KORA Ayaka (Athletics/Long
Jump), SUZUKI Yudai (Para Track and Field, Long Jump, short-haul Run)TOPJAL REPORT 2023

74

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

Business Strategy
3.3.Business
Strategy

4. Financial Strategy(1) Business Model Reform(2) DX Strategy(3) Human Resources Strategy(4) GX strategy

Roadmap for Reducing CO2 Emissions by FY2030

Introduction(4) GX Strategy -Accelerating Response to Carbon Neutrality by 2050 Through a Variety of Methods-- - - -：Expected emissions if no measures are taken(10,000 tons)
1,000

Upgrades tofuel-efficient p.97
aircraft

FY2019Levels

Reduction in
p.97
daily
operations:900

Use of SAF*

AOKI Noriyuki

Amount of obligated CORSIA offsets to be allocated from FY2024

Managing Executive Officer
Senior Vice President,
General Affairs Division

FY2022

FY2025

*Sustainable Aviation Fuelmedium to long term, we will promote cooperation with suppliers

business is the most important issue in order to realize an exciting
move around without restraint. The GX Strategy was formulated
in the Medium Term Management Plan Rolling Plan 2023 with theintention of addressing the issue as one of the pillars, which must
be resolved strategically.
At the 2022 General Assembly of the International Civil Aviation
Organization (ICAO), long-term targets, which aims to becomecarbon neutral in the field of international aviation by 2050, and
CORSIA*, which is a framework for reducing CO2 emissions, wereadopted.

and partners that have new technologies such as synthetic fuels
and negative emissions (such as CO2 capture) that are under

GX promotion
investment

In addition, Internal Carbon Pricing (ICP) was introduced toaccelerate efforts to reduce CO2 emissions from the perspectiveof how it contributes to the roadmap for reducing CO2 emissions,rather than focusing only on returns from initial investment. We will
aggressively pursue investments to promote GX, including projects
that will lead to the acquisition of CORSIA certification in the future.

▶Accelerate Response Through Technological Innovationand Stakeholder Collaboration

aircraft and technological innovations will reduce CO2 emissions. In

Green Operations, and utilize SAF, which reduces CO2 emissions

addition, in the face of the rapidly increasing recognition of SAF, it

by up to 80 percent compared to conventional jet fuel. One of thewill be extremely important to accelerate efforts to grasp trends inmost important issues is the production and utilization of domestic

technological innovation and ESG investments through cooperation

SAF, and it is important to see this as an opportunity to build awith stakeholders while maintaining firm communication withdomestic recycling-based society that is internationally competitive,

external parties. We will work together to realize a decarbonized

and work to establish a national circulation that transcends industry

society while gaining the understanding of all stakeholders,boundaries.

including our customers and shareholders.

In addition, as part of CORSIA's efforts to implement offset

We have introduced an ICP to estimate the quantitative effect of CO2
reduction and have set the standard amount of CO2 reduction effectat 15,000 yen/ton.
When making decarbonization investment decisions with a focus on
the future, we will not make capital investment decisions based solely
on economic value, but will actively use this information to identify
social value and profit opportunities and risks, balancing the level ofcompany-wide efforts and accelerating our efforts toward carbon
neutrality.

Prior to the baseline review, the ratio was 0 percent for Individuals and 100 percent for Sectoral until 2030, and 20 percent for Individuals and 80 percent for Sectoral since 2030. However, basedon the baseline review last year, the ratio was 0 percent for Individuals and 100 percent for Sectoral until 2033.

Baseline and Ratio of Individual Growth Factors After Review*Prepared based on information provided by IATA (International Air Transport Association)
CORSIA PROGRAM

Less than 2019 years ofemissions<2024 to2035>

Less than 85 % of 2019
emissions

GrowthFactor"Basic Policy for Realizing GX"

Second phase
Mandatory participation
Individual 20
Sectoral 80

Individual 70
Sectoral 30

After review
Individual 0
Sectoral 100

After review
Individual 15
Sectoral 85

Individual 0
Sectoral 100

100

Sectoral Growth Factor
Global growth rate ofinternational aviation

Baseline ifbase year 2019 continues
Baseline
after this review

85
Offsetting requirement (CO 2 tons)=(A: Sector excess x Sectorial %)+(B: Individual company excess emissions x Individual%)
A= individual company emissions x (sector-wide excess emissions/sector-wide emissions)
B= Excess emissions by individual companies*Excessive growth rate

2019

JAL REPORT 2023

First phase
Voluntary participation
Individual 0
Sectoral 100

100

Roadmap established for the next ten years to simultaneously
address climate change, ensure a stable energy supply, and achieve
economic growth*CORSIA ... A system requiring international flights to purchase emission credits for exceeding the 2019 CO 2 emission standards

75

Pilot phase
Voluntary participation
Individual 0
Sectoral 100

Data Section<2021 to 2023>

In addition to accelerating our existing efforts to achieve our CO2
emission reduction targets by 2030, we will actively promote theuse of new technologies in our medium- to long-term strategies,
such as synthetic fuels and Direct Air Capture (DAC) that directly
captures CO2 from the atmosphere, which are undergoing researchand development worldwide with the aim of commercializing thetechnology around 2030, with a view to achieving carbon neutrality by
2050.

What is CORSIA?
CORSIA is a system established by ICAO that requires offsetting requirements on airlines of participating countries by sharing the amount of CO2 emissions exceeding thebaseline on international flights. At the 2022 ICAO General Assembly, the baseline was revised to "85 percent of the 2019 emission level” after 2024. Since the baseline
was lowered 15 percent, airlines of participating countries are required to offset when exceeding 85 percent of the 2019 emissions.
There are two types of offset requirements: individual and sectoral. The former refers to the ratio of individual airlines to bear the amount of their own offset requirements,
and the latter refers to the ratio of airlines of participating countries to bear the amount of offset requirements of the aviation sector.

< Framework and Policy on GX >Government Policy

Promote coordination with suppliers and partners
who possess new technologies such as synthetic
fuels and negative emissions (CO2 capture, etc).

Sustainability

For the sustainability of the aviation business, we expect our new

emissions by upgrading to fuel-efficient aircraft, implement JAL

GX promotion
technology

Base price: 15,000 yen/ton

development worldwide, and promote the use of new technologies.

In this environment, we will accelerate our efforts to reduce our own

Review of ICAO CORSIA baseline

Introduce Internal Carbon Pricing (ICP) into
investment decisions

Growth Strategy

society and future where many people and various objects can

ICAO

10％ less

Measure tocomply withrevisedCORSIAbaselinecompared to FY2019

obligations, we will add the use of emissions trading. In the

We recognize that reducing CO2 emissions in the air transport

Utilization ofcarbon-offset p.95
program

FY2030Less than
FY2019CO2 emissions(actual)▶Background and Outline of GX Strategy

p.95

The JAL Group Value Creation Story

ー：Actual emissions
800

Reduction of direct emissions

The GX strategy was formulated based on businesscharacteristics and changes in the external environment,with the goal of realizing a 1.5°C scenario for carbon
neutrality by 2050. We will promote GX throughcooperation with suppliers and partners with GX promotion
technology. We will use ESG investment to lead theaviation industry's efforts to realize a decarbonized society
as a leading airline company.

2021

2024

2027

2030

2033

2035

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JAL REPORT 2023

76

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

3. Business Strategy

Financial Strategy
Strategy
4.4.Financial- Strengthen Our Risk Tolerance and Further Accelerate Sustainable Growth -End of FY2022

As the COVID-19 pandemic comes to an end and air transport demand recovers, the JAL Group will strengthen its
risk tolerance while accelerating its efforts for sustainable growth. In addition to investment, we will actively allocate
management resources to promote our ESG strategy and human capital management, by recognizing the use ofresources not as costs, but as “ investments to support the future of JAL”. As business performance recovers, wewill gradually expand shareholder returns for those who have supported us during the COVID-19 pandemic.

Liquidity
Stability（credit rating）

Credit Rating

Maintain A
RatingCapitalEfficiency

Resource
Allocation

Shareholder
ReturnExecutive Officer
Senior Vice President of Finance and Accounting
Senior Vice President of Business Administration

SAITO Yuji

YUMISAKI Masao▶Summary of FY2022

For the fiscal year 2023, passenger demand is also on a steadyrecovery trend. The JAL Group has overcome the unprecedented
situation of a sharp and significant decline in demand and is firmly inplace to fully capture the recovering demand, including resuming theAchieve “A Flat”
In addition, consider introducing “Sustainable ROIC (tentative name)”,

ROIC*1

3.3%

FY2025：9 % a new investment efficiency index that takes social values into account

ROE

4.3%

FY2025: 10% or more by surpassing cost of shareholders' equity

Capital
Allocation

Accelerate efforts to achieve sustainable growth while
improving risk tolerance

Financial
Discipline

Secure sufficient free cash flow for each fiscal period

Dividend

FY2022:25 yen/share

Achieve a dividend payout ratio of over 35%, as soon as possible* 1 Return on Invested Capital (ROIC) = EBIT (after tax)/average of fixed assets*2 at the beginning and end of the fiscal year
* 2 Fixed assets = Inventories + non-current assets - deferred tax assets - assets for retirement benefits

Although there are no major changes in our financial strategy, we will focus more on accelerating growth. As the COVID-19
pandemic comes to an end and demand steadily recovers, we will strengthen our risk structure and accelerate our efforts forsustainable growth.
We will strive to achieve our goals by fiscal year 2025, the final year of the Medium Term Management Plan, by implementing
business model reform and achieving sustainable growth in the post-pandemic period.
The target indicators for strengthening risk tolerance were set in preparation for events at pandemic-level scales, and will be followedin the “Medium-Term Management Plan FY 2021-2025 Rolling Plan 2023”. With regard to liquidity on hand, we aim to secure
approximately 5.0~5.6 months of passenger revenue while partially utilizing credit facilities, and aim to achieve approximately 50
percent in terms of our equity ratio (based on credit rating evaluation) by the end of FY2025.
While the credit facility was increased during the pandemic, this was reduced on June 30, 2023, upon reflecting the improvement in
performance and cash flow.
Set an Appropriate Level of Liquidity as 5.0～5.6 Months ofPassenger Revenues After the COVID-19 Pandemic● S ecure liquidity that will enable us to tolerate risks according to the size ofpassenger revenues subject to potentially significant impacts if any event
risk occurs (Including the use of credit facility)● S ecure an appropriate level of cash and deposits considering asset efficiency

Working capital ＋
Repayment/
Investment

Preparation for event risks
Liquidityon hand

Fixed Cost
Spending until
Financing
Refund ofIssuedTickets

Creditfacility

In order to maintain our financing capabilities, we aim to achieve an “A Flat” credit rating. At the same time, we will also work to

Data Section▶“Financial Strategy” as a foundation for Our ESG Strategy

End of FY2025: Over 50% (credit rating)

Sustainability

This fiscal year, air passenger demand in Japan and overseas
steadily recovered as the shift toward balancing the infection’s
prevention and socioeconomic activities gained momentum.
Amid the recovery trend, the JAL Group strived toward maximizing
revenue by capturing both passenger and cargo demand, as well as
by steady growth of ZIPAIR and its mileage business, both of which
are growth drivers. We also made every effort to improve revenue by
cost reduction to recover from the COVID-19 pandemic, achieving
profitability for the full year.
As for our financial strategy, in order to steadily upgrade our fleets tofuel-efficient aircraft, we implemented a financing of approximately
26.5 billion yen through a transition-linked loan with specific use ofproceeds in March 2023 as the first Japanese airline company touse such a loan.
In terms of shareholder returns, the JAL Group has not provided
dividends for fiscal year 2020 and fiscal year 2021, as it wasnecessary to place the highest priority on securing liquidity on handand strengthening its financial position.
However, the JAL Group provided its year-end dividend at 25 yen
per share for fiscal year 2022, as cash flow is steadily recovering,
positive profitability is achieved for the full fiscal year, and airtransport demand is expected to make a steady recovery toward
the next fiscal year.
We would like to express our deep appreciation to our shareholders
for their continued support during the pandemic.

recruitment of human resources toward medium-to long-term growth.
International routes have shown recovery above expectations.
We will expand our long-haul full service carrier routes and expand
the capacity and network of our LCCs, particularly ZIPAIR, above
pre-pandemic levels. As for domestic routes, we will introduce
fuel-efficient aircraft and maintain the same level of supply at prepandemic levels, and aim to create new demand, such as regional
movement within Japan of inbound passengers.
For the cargo business, we aim to expand business with a new
business model that suppresses volatility through partnerships.
The mileage business has recorded stable profits, and we willcontinue to take measures to improve convenience and expand ourcustomer base.
As part of our investment for our company's sustainable growth,
we plan to introduce the state-of-the-art flagship A350-1000 on ourinternational routes from the winter schedule of fiscal year 2023, inorder to enhance our product competitiveness. Also, we will aim
for expansion through the introduction of freighters refurbishedfrom a passenger plane. By partnering with our logistics partners,
we will build a new business model that reduces business risks
and contributes to solving the shortage of truck drivers in domestic
delivery, which has become a social issue.
In order to expand our non-airline business domain, we areinvesting in IT for the new mileage status program, which weplan to introduce. Furthermore, through the expansion of SMART
AIRPORT, we will aim for smooth procedures at airports andimprovement of efficiency regarding our human resources.
Regarding shareholder returns, the forecasted dividend for fiscal
year 2023 is 40 yen per share, and the forecasted interim dividend
is 20 yen per share, as steady recovery of cash flow is expected.
Going forward, we will strive to achieve our basic policy of acontinuous and stable shareholder return, that is in line with ourbusiness recovery.

Secure 5.0–5.6 months’ worth of passenger revenue(including credit facility)

Growth Strategy

Director, Senior Managing Executive Officer
Senior Vice President of Corporate Strategy and Planning
Chief Financial Officer

39.3%（Equity Ratio）

Overview and Goals of FY2023-2025 Strategies

The JAL Group Value Creation Story

Build Risk
Resilience andCapital Efficiency

639.2 Bn JPY
Credit Facility 250 Bn JPY

Introduction① Restructuring of our Financial Foundation - Toward Risk Tolerance and Growth -4. Financial Strategy

improve capital efficiency and asset efficiency, aiming to achieve a “ROIC of 9%” and “ROE of 10% or higher”.
In addition, in order to promote our ESG strategy, we are considering the introduction of a new investment efficiency indicator,“Sustainable ROIC (tentative name)”, which takes into account the social value generated by ESG investments.
With regard to shareholder returns, we aim to achieve a dividend payout ratio of approximately 35% or more as soon as possible.
We will continue to work to restore and improve our business performance and our ability to generate cash flows to achieve ourbasic policy of a continuous and stable shareholder return.

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78

Chapter 3 Growth Strategy

1. Overall Strategy

2. ESG Strategy

Financial Strategy
Strategy
4.4.Financial

3. Business Strategy

Communication with Institutional Investors- Gradually expand shareholder returns while accelerating ESG investments Conceptualization of FY2023–2025
Invest in human resources and expenses incurred to pushforward with ESG

Investment
in assets
Total

650 Bn JPY
Introduce new investment
efficiency index that takessocial values into account

Proportion of
investment ● Introduction of fuel-efficient aircraft
60 % ● Electrification of airport vehicles, etc.
Proportion of

S investment ● Introduction of freighters
25 % ● Expand JAL SMART AIRPORT, etc.
Proportion of
G investment ●15 %Achieve goals of social
impactReduction of CO2 emissions
Increase inbound demand● Increase related populations

IT systems, etc.

Shareholder Return
Approx. 100 Bn JPY
Debt
Financing

Debt Repayment
Approx. 300 Bn JPY

Cash In
Approx. 1,000 Bn JPY〜

Cash Allocation

Total Number of Events for Institutional Investors
FY2019FY2020

FY2021

FY2022

Earnings Announcement・Medium Term Management Plan Announcement for Institutional Investors

4

4

4

4

Events for Institutional Investors

4

3

3

3

IRDAY

1

1

1

1

Facility Tour

1

0

0

0

CEO Small Meeting・CFO Small Meeting

2

2

2

2

Conference hosted by Securities Companies

9

9

11

12

FY2019FY2020

FY2021

FY2022

Interviews with Domestic Investors

167

Interviews with Overseas Investors

219
386
63
16
0
43
4

209
262
471
173
42
0
68
63

188
164
352
91
12
1
74
4

162
230
392
112
17
7
86
2

FY2019FY2020

FY2021

FY2022

4

4

4

4

●
●

Achieve stable dividend
Dividend payout ratio ofover 35%

Rebuild financial
foundation* 1 Operating CF excludes investment in human resources and expenses incurred in pushing forward with ESG

well as gradually expand shareholder returns in line with the recovery of our business performance, and restructure and grow ourfinancial base.
In addition to asset investment, we will continue to pursue our ESG strategy and human capital management, considering the use ofresources not as costs, but as “investments to support the future of JAL”.
To further promote ESG management, we plan to invest a total of 650 billion yen in assets between fiscal year 2023 and 2025.
Investment amounts related to E , S and G are allocated as follows. We believe that investments in ESG management will
simultaneously play a role in risk management to reduce fluctuations in capital costs and enhance our customer preference.

Total Number of Interviews with Institutional Investors (Total)

Total
Interviews by Management
President
Vice-president
CFO・Senior VP of Finance & Accounting
Others*1* 1 Includes interviews with the Chairperson

Internal Feedback ConductedFeedback conducted at the Board of Directors Meeting*2

S

25% of Investments● Introduction of fuel-efficient aircraft including the Airbus A350-1000● Electrification of airport vehicles● Introduction of freighters toward solving the issue of shortage of domestic truck drivers in domestic delivery● Expansion of JAL SMART AIRPORT for airport procedures and improved productivity* 2 Refers to feedback sessions conducted at the Board of Directors meeting to internally share the opinions of institutional investors

Sustainability

E

60% of Investments

Growth Strategy

In terms of the allocation of management resources, we will proactively promote ESG investment to support our ESG strategy, as

The JAL Group Value Creation Story

OperatingCash Flow*1

Invest in
ESG

E

Promotion andacceleration of ESG
Strategy

We are committed to appropriate, interactive communication with our institutional investors. In addition to individual meetings
with our President, Executive Vice President, Group CFO and others, we hold regular events to provide institutional investors with
opportunities to deepen their understanding of our company.
In addition, we regularly provide feedback on issues of interest and opinions from institutional investors around the world to ourdirectors and management at Board of Directors meetings and Group Management Council meetings, to identify issues andimprove our management.
We will continue to strive to improve both the "quality" and "quantity" of our dialogues to help more investors understand ourcompany.

IR DAYAt “IR DAY” held in May 2023, 11 management members including President Akasaka,
discussed the contents of the “JAL Group Medium-Term Management Plan FY 2021-

G

15% of Investments

Introduction② Distribution of Management Resources

2025 Rolling Plan 2023” focusing on the mid-long term growth strategy and other● IT systems to support our businessrelevant topics. Participants deepened their understanding of the JAL Group throughvarious perspectives including Full Service Carrier/Cargo, LCC, Mileage Lifestyle andIn fiscal year 2023, we introduced ICP(Internal Carbon Pricing) into our investment decisions. We will accelerate ESG investment by
including ESG elements in our investment decisions. We are also considering the introduction of a new investment efficiency index,
the “Sustainable ROIC (tentative name)”, which takes into account the social value generated by ESG investments.
The total amount of debt repayment toward restructuring our financial base is expected to be approximately 300 billion yen overstrive to gradually expand shareholder return as profits recover to achieve a dividend payout ratio of approximately 35 percent ormore as soon as possible.

For more information on Internal Carbon Pricing, please visit the JAL website.
WEB

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

Facility TourAt the “facility tour” held on May 2023, analysts of security companies and institutional
investors were introduced to the aircraft of ZIPAIR, our growth driver in the LCC
Data Section

three years. At the end of FY2022, we were able to resume dividends for the first time in 3 financial years. Going forward, we will

Infrastructure, and strategies regarding ESG and human resources.

business, as well as SMART AIRPORT and SMART SECURITY, which are highly
effective as part of the company's DX strategy.

CEO Small Meeting and CFO Small Meeting
At “CEO Small Meeting” and “CFO Small Meeting”, dialogue sessions were held focusing on the ESG strategy, which is acentral theme of the “JAL Group Medium-Term Management Plan FY 2021-2025 Rolling Plan 2023”.

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80

Chapter 4 Sustainability
Voice
first challenge toward addressing
Special Feature Japan'ssociety and the future stated in our goals!

Sustainable Charter Flight

Introduction

Realizing a continuous transformation of our flights
together with our customers

The JAL Group aims to create social and economic value by building relationships and connections
through air transportation that goes beyond business realms. This is to realize "an society and future
where many people and goods freely move around" as set forth in our goals.
The JAL 2030 Sustainable Charter Flight (hereinafter the “Flight”), which operated in November 2022,
symbolizes this concept
Working with various stakeholders, we took a challenge to operate a flight that leads
to a sustainable future.

The JAL Group Value Creation Story

Preparations for this Flight were carried out under theslogan "Together with our Customers."
Our customers kindly cooperated with carbon
offsetting to achieve Net Zero CO2 Emissions.
To further reduce CO2 emissions, our customers also
made efforts to reduce baggage weight, get to the
OGAWA Noriko,boarding gates early for on-time departures, pre-cancel
Vice President ofinflight meals in advance, make reservations for inflight
ESG Promotion
sales in advance, and we offered digitalized inflightmagazines. In order to recycle the paper cups used for inflight drinks, we asked
customers to cooperate in waste segregation. We also reduced the volume ofplastics by changing the lid of the paper cups from plastic to paper.
With the understanding and cooperation of our customers, this Flight was
successful. This will not be a one-off effort but will be expanded to international
flights and those operated by the Group airlines.
By taking advantage of the awareness and discoveries gained through theimplementation of this Flight, we will realize sustainable flights for 2030 and work
together with the JAL Group to promote initiatives to create connections throughair transportation.

■ Efforts to Provide Transport and Connections to Solve Social Issues
Offer more choices(By various means)
Remove constraints(By everyone)

Bring Together Initiatives Related to Sustainability
While transportation is convenient, the environmental impact of flight

Improving
accessibility
p.50

Promotion of DEI
p.69

Regional
Revitalization
p.63

of resources, promotion of diversity equity and inclusion (DEI), improving

tumblers made from Okinawa sugarcane pomace distributed as giveaways.

In terms of regional revitalization, we offered tours that allow visitors toaccessibility, and regional revitalization.

Drinks were served in recyclable paper cups using paper lids, focused on theexperience the charms of Okinawa while taking the environment into

Practicing the Five Pillars for Future Flights

operations has become a major issue.

Effective Use of
Limited Resourcesp.101

texture and durability. The cups and lids were collected after use.

consideration.

We served hamburgers made with soybean meat patty, which has a low

In addition to preparing hotels with sustainable amenities made from recycled

The Airbus A350-900, a state-of-the-art fuel-efficient aircraft was used for thisenvironmental impact, as well as other menus that took water consumption

plastic and Okinawa sugarcane pomace, a portion of the tour fee was

Flight.

and health into consideration.

donated to preserve the natural environment in Okinawa.

In addition to transportation, we also aim to create social and economic value

Approximately 40 percent of the fuel used was sustainable aviation fuel (SAF),

Many of employees played active roles in this Flight.

As the slogan of this Flight was A Sustainable Future Together, a future Net

by facilitating the flow of people, business, and goods, which are relationships

which reduces CO2 emissions by nearly 80 percent compared to conventional

Half of the cabin attendants were men, and employees with hearing

Zero CO2 Emissions flight was realized not only by the JAL Group but also by

and connections, through initiatives to offer more choices, remove constraints,

jet fuel.

impairments also served as cabin support staff and presented the outline ofco-creating with our customers, business partners, and local communities.

and create goals by collaborating across business realms.

We achieved Net Zero CO2 emission by devising operational improvements

inflight talk session with sign language.

The JAL Group will further accelerate our efforts to make all flights sustainable

This Flight, operated between Tokyo (Haneda) and Okinawa (Naha) insuch as efficient engine operations, and our customer’s cooperation in JAL

Cabin attendants with in-house accessibility certifications and airport staff

in order to realize “an society and future where people and goods freely movearound".

carbon offset, which compensated the CO2 emissions during the flight.

with Care- Fitter certifications serviced on the day, which promotes DEI andWith Net Zero CO2 Emissions at the top of our list, navigators such as

Regarding inflight services and giveaways, we made effective use ofaccessibility.

Professor Kanie Norichika of Keio University Graduate School, a leading

resources.

researcher of SDGs, participated in this event, focusing on the effective use

Upcycled items such as baggage tags made from used JAL seat covers, andSustainability

The JAL Group has declared Net Zero CO2 Emissions by 2050 to realize asustainable air transportation business.

November 2022, is an action that symbolizes our concept in realizing our goals.

Growth Strategy

Create purpose(Many times)

Net Zero CO2Emissionsp.90

Realizing Japan's First Net Zero CO2 Emissions Flight
One way from Haneda to Naha

Efforts to reduce CO 2

Estimated CO2 emissions

81

Conventional aircraft

Estimated CO2
emission:

100％

JAL REPORT 2023

Fuel-efficient
aircraft

Fuel-efficient
aircraft
Airbus A350

Estimated CO2
Emissions:
Approx

85％

SAF

＋

Flights＋

Net Zero CO2 Emissions:

85％

0％

JAL Carbon
Offset:With the cooperation of all customers in JAL Carbon Offset, thisFlight was able to compensate for CO2 emissions by donating to
CO2 absorption projects.

Top: Hamburgers with soybean meat patty
served as an inflight meal
Top right: A souvenir baggage tag made fromused JAL seat covers and leftover Kariyushi fabricinvented by JAL’s engineers.
Bottom right: Cups and lids made from paper that
acquired international certification in consideration
with forest resources

In order to take advantage of thediverse abilities of our employeeswith various origins, two of our
JAL SUNLIGHT’s employees withdisabilities served as cabin support
staff on this Flight.

Data Section

15％

The use of Airbus A350 resulted
in a reduction of approximately 15
percent from conventional aircraft.
Net Zero CO 2 Emissions wereachieved with the use of SAF and
JAL Carbon Offset.

For more information about JAL2030 Sustainable Charter Flight, please visit our website.
WEB

https://www.jal.com/en/sustainability/sustainableflight221118/

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Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Environment

Respect for Human Rights-Enhance corporate value by increasing social and economic value through the promotion of ESG strategies
We will promote our ESG strategies while always being aware of how the JAL Group should be from social
perspectives and how we can leverage our capital and strengths to influence the environment and society.
We will accelerate a JAL-like sustainability by determining our social role in order to realize a future in which
everyone can feel fulfilled and hopeful.

AOKI Noriyuki, Chair of Sustainability Promotion Committee(1) Overall Sustainability

Introduction

Sustainability Initiatives

Governance

The JAL Group Value Creation Story

The Sustainability Promotion Committee, chaired by the Senior Vice President of theBoard of Directors
General Affairs Division, is held on a monthly basis to review the progress of initiatives
and discuss them among the relevant officers.
President
The Sustainability Promotion Council, established in 2021 with the President as Chair
and attended by all Executive Officers, conducts management reviews and promotes
Sustainability Promotion Council
Chair: President,
ESG management under the following topics.
Participants: All Executive Officer(held once a quarter)● Determine important issues and annual targets for sustainability initiatives, andmonitor and evaluate the progress
Sustainability Promotion Committee Chair: Senior Vice President ofGeneral Affairs Division,● Determine risks and opportunities for climate change(held once a month)
Participants: relevant officers● Monitor and evaluate Environmental Management System (EMS)● Monitor and evaluate human rights due diligence
Sustainability Promotion Vice President Committee Participants: relevant vice presidents(held once a month)
The Sustainability Promotion Council reports and discusses the agenda of themeeting with the Board of Directors. They will consult the important matters related
Sustainability Staff Committee
Participants: Persons in
to ESG promotion with the Board of Directors in order to enhance corporate value.
charge of relevant departments(held once a week)
In FY2022, TCFD, the results and reviews of DJSI, the ESG evaluation outline,
materiality reorganization, initiatives based on external environmental changes andsocial requirements, additional and revised targets, among others, were discussed and reported to the Board of Directors twice in total. Based on
the discussions in the Sustainability Promotion Council, ESG and GX strategies were separately discussed at the Board of Directors twice in theprocess of formulating the Medium-Term Management Plan Rolling Plan.

Strategies
Growth Strategy

Based on the value creation story, the ESG strategy is positioned as the topmost strategy in the Medium-Term Management Plan Rolling Plan 2023.
It promotes company-wide initiatives.
Please see pp.49-50 for more information on ESG strategy, pp.67-74 for the human resources strategy, and pp.75-76 for the GX strategy.
* This chapter mainly refers to TCFD, information based on the recommendations of the TNFD, effective use of limited resources (reduction of single-use plastics and food waste),and efforts to respect human rights based on human rights due diligence.

The eight reorganized materiality issues are as follows. Please see pp.11-12 for details on materiality.

Key Sustainability Promotion Committee Members
From left in the back row, OMORI Yasushi, Senior Vice President of Mileage and Lifestyle Business, SAEDA Naohito, Senior Vice President of Human Resources,
ABE Eri, Deputy Senior Vice President of Sales and Marketing, NAKAGAWA Yukio, Senior Vice President of Procurement, From left in the front row, TOTTORI
Mitsuko, Senior Vice President of Customer Experience Brand Communication, AOKI Noriyuki, Chair of Sustainability Promotion Committee and Senior Vice
President of General Affairs, SAITO Yuji, Senior Vice President of Corporate Planning Chief Financial Officer.

▶Review of FY2022

Initially when the Medium-term Management Plan was announced,
the JAL Group focused on its own intentions and reasoning

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JAL REPORT 2023

Regional Revitalization
Creating mobility andconnections throughbusiness activities

Promoting economic growth and international mutual understanding through tourism
Bringing prosperity and vitality to the community

Fulfilled Hearts

Enhancing happiness and cultivate an enriched life through free movement and connection of goods and people

Resilience through Diversity

Building a diverse society in which people, cultures, values, and modes of behaviors are respected and new values are created

Safe and Secure Society

Creating, developing, and protecting a safe infrastructure of the skies

Aviation Infrastructure

Passing on the basis of sustainable air transport to the future

GX strategy

Precious Earth

Preserving and restoring the global environment, which serves as a source of people, sales and distribution channels, and to pass it on to the next generation

Human resources strategy

Human Capital

Enhancing capacity for value creation and productivity of all JAL Group employees

Foundation forvalue creation

Governance (Corporate Governance/JAL Group Code of Conduct)

Risk Management
The JAL Group defines risk as an event or action that interferes with the achievement of the mission, objectives, and goals of anindividual or an organization. Risk surveys and assessments are performed every six months.
The Sustainability Promotion Council deliberates risk management policies and necessary solutions for overall sustainability

Data Section▶Considering the Impact on the Environment and Society

Tourism Nation

Sustainability

ESG is now mainstream across the globe and it is changing rapidly
with the demands of non-financial disclosure and the evolving of
the regulations such as the CORSIA baseline.
In the Medium-Term Management Plan Rolling Plan 2022, the JAL
Group defined its ESG strategy, its long-term business strategy, tosolve social issues and facilitate the flow of people, business, andgoods, and has focused on transforming its business objectives.
While drawing our future image, we are steadily promoting our
initiatives after reviewing our main sustainability initiatives andperformance indicators to promote business activities based on
ESG strategies in business areas other than air transportation.
The JAL Group has disclosed information in line with our initiatives
which lead to the selection and assessment as a constituent of the
ESG evaluation.
In addition, the JAL 2030 Sustainable Charter Flight was a symbolic
initiative and a good opportunity for our employees to experiencesustainable flights as well as for our customers to see, learn, andexperience sustainability.

regarding its ESG strategy. However, gradually the JAL Groupchanged its perspectives to on how the Group should be from asocial outlook and what kind of impact we should exert on to theenvironment and society by leveraging our capital and strengths.
We recognize that business and ESG should not be differentiated.
As ESG is no longer exclusive, we are more aware of the impactthat our business activities have on the environment and society.
Thus we must change in order to continue to be the JAL Group
that our shareholders call for.
The Rolling Plan 2023 positioned the ESG strategy as the topmost
strategy to realize value creation and growth.
Based on the premise of reducing environmental impact, we aim
to resolve social issues such as the decline of community life
and the diminishing sense of well-being through the power of airtransportation and societal connection, which are being reviewed
with the COVID-19 pandemic.
Going forward, we will hone in on JAL's unique efforts to collaborate
across business realms. We hope to make strides toward initiatives
with a sense of purpose that create both social and economic value
through our business activities.
In order to realize an exciting society and future in which people andgoods can freely move around, our employees will work together
while considering the impact on the environment and society.

■Eight Key Materiality Issues Addressed by the JAL Group

governance, including the environment. The details are reported to the Board of Directors.

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Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Environment

Respect for Human Rights

While covering the 17 SDGs, the JAL Group simultaneously organizes the ESG perspectives and the degree of impact through businesses andthe importance for management is discussed at the Board of Directors. In FY2019, the JAL Group established four priority areas, namely theenvironment, people, local communities, and governance. 22 issues were addressed in each area and medium-term targets were set for each of thefour areas and 22 issues. ESG management was promoted to achieve the SDGs.
In FY2021, the four preeminent initiatives (reducing CO2 emissions, reducing single-use plastics, improving the ratio of female managers, and regional
revitalization) were set as management targets (Sustainability). In FY2022, new indicators were added and disclosed along with past performances inorder to promote our management strategy based on our ESG strategy in business areas other than air transport.
On the other hand, as the previous 22 issues in the 4 areas were mainly based on the FSC business, the link to social and economic values were notclear. In FY2023 they were revised into the eight materiality issues.

Regional Revitalization

Fulfilled Hearts

Action Items

Safe and Secure Society

Our company website provides information on key initiatives and achievements up to FY2022 that were included in last year's consolidated report.
WEB

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

Aviation Infrasructure

Performance Indicators

FY2019 Results

FY2020 Results

FY2021 Results

FY2022 Results

Increase ratio (Passengers)ー-74.2% v.s.FY2019 *Excluding LCC-59% v.s. FY2019 *Excluding LCC-15% v.s. FY2019

Increase ratio (Cargo)ー-30 v.s. FY2019-34% v.s. FY2019-17% v.s. FY2019

Maintenance and development of regional route
networks including outlying island routes

Number of domestic entry points (including code share)

62 points

61 points

61 points

64 points

More than 65 points

Expansion of services provided through increased
contract orders

Number of passenger and cargo flights regarding
ground handling for foreign carriers

87,000 flights

9,000 flights

17,000 flights

29,000 flights

128,000 flights

Promoting the use of domestic flights to in-bound tourists

Number of users

701,240 people

49,188 people

121,844 people

582,180 people

1,505,000 people

Drone logistics and commercialization of eVTOL Air Taxi

Commercialization

ー

ー

ー

ー

FY2023:Commercialization of drone delivery
FY2025:eVTOL commercialization

Promoting air travel to customers who find it difficult
to travel

Ratio of such passengers onboard

0.36%

0.29% (0.8 times v.s. FY2019)

0.64% (1.8 times v.s. FY2019)

0.71% (1.9 times v.s. FY2019)

2.5 times v.s. FY2019 results

Number of wooden wheelchairs which go through metal detectors

478 units

478 units

478 units

508 units

580 units

Enhancing pharmaceutical transportation

Transport weight

610 tons

721 tons +18% v.s. FY2019

1,172 tons +92% v.s. FY2019

1,363 tons +123% v.s. FY2019+50% v.s. FY2019

Promoting Workstyle Research with Outside Stakeholders

Number of member organizations of study groups

ー

ー

ー

52 organizations

200 organizations

Promoting JAL Wellness & Travel

Number of municipal partnerships

ー

ー

ー

4 cases

10 casesStrengthening planning and sales of recycled products
in cooperation with companies outside the JAL Group

Number of affiliated companies

ー

ー

ー

ー

15 companies

Promoting Dokokani Mile

Cumulative number of users

ー

ー

ー

540,000 people

810,000 people

Creating flow of people through the development ofsubscription -type travel programs

Number of users

ー

ー

ー

ー

250% of FY2022

Scope 1 [Aviation] Emissions

9.09 million tons

4.39 million tons

6.19 million tons

8.19 million tons

Less than 9.09 million tons

CO2 emissions per paid ton kilometer (RTK)

1.0648 kg-CO2/ton kilometers1.3763 kg-CO2/ton kilometers1.2751 kg-CO2/ton kilometers

1.0829 kg-CO2/ton kilometers0.8187 kg-CO2/ton kilometers

Scope 2 [Ground facilities] Emissions

57,000 tons

51,000 tons

53,000 tons

56,000 tons

54,000 tons

Percentage of fuel-efficient aircraft

82%

84%

85%

86%

86%

0.004％

1% of all loaded fuel

Increase in domestic passengers and cargo traffic

FY2025 Targets+10% v.s. FY2019

Management targets

Growth Strategy

Creating Relationships
and Connections ThroughMobility

Resilience through Diversity

Key initiatives based on the 8 materiality issues include actions to create mobility and connections through business activities from the perspectivesof increasing options, eliminating constraints, and creating objectives. Global environmental conservation initiatives such as the GX strategy topass on the precious Earth to the next generation, human capital management aimed at by the human resources strategy, and governance as thefoundation for value creation. Metrics and targets are set as follows. It is also possible to set quantitative numerical targets, and we have set items topromote with intention.
Among the disclosed items up to FY2022, prioritized items focused on tracking data trends are reflected in the ESG data.

The JAL Group Value Creation Story

Tourism Nation

Introduction(2) Key Initiatives (Metrics and Targets)

Precious Earth85

JAL REPORT 2023

Ratio of SAF to total fuelLoaded in all five A350
delivery flights

Domestically produced SAF loaded on
domestic scheduled flights

・Loaded on four A350 delivery flights
・Loaded simultaneously on two types ofdomestically produced SAF for domesticscheduled flights

Reduction through JAL Green Operations promotion(CO2 reduction through operational ingenuity)

157,000 tons (1.7% of emissions)

82,000 tons (1.8% of emissions)

142,000 tons (2.3% of emissions)

195,000 tons (2.4% of emissions)

Reduction equivalent to 2.5% of CO2
emissions from aircraft

Number of JAL Carbon Offset website visitors

ーー

Tracked from FY2021

13,122 people (1.5 times v.s. FY2021)

30,000 people (3.4 times v.s. FY2021)

Number of Carbon Offset users

ーーTracked from FY2022

385 people

2,000 people (5.2 times v.s. FY2022)

Reduction ratio of new petroleum-derived singleuse plastic items in in-house standard products
used inflight and in lounges

2.5%

10.4%

25%

45%

100%

Management targets

Use of environmentally friendly materials insingle-use plastics used in airports and cargotransportation*Starting from FY2020

87.6%

90%

91%

100%

Management targets

Reduction of inflight meal waste

Yield improvement

ー

ー

ー

ー

Less than 4.5%

Paper reduction

Electronic AWB (Air Waybill)

ー

ー

25％

62.5％

Finalized JAL flight e-AWB

Reducing total amount of CO2 emissions

Reduction of plastic

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JAL REPORT 2023

Data Section

Effective Use of Limited
Resources

Sustainability

Addressing Climate ChangeManagement targets

86Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Environment

Respect for Human Rights

Introduction

Precious Earth
Performance indicators

FY2019 Results

FY2020 Results

FY2021 Results

FY2022 Results

FY2025 Targets

Precaution of Environmental Pollution

Industrial waste reduction

Final disposal ratio

0.3%

0.6%

0.3%

0.6％

Keep below 1%

Noise Reduction

Low-noise aircraft operations

ICAO Chapter 14 standard compliant aircraft ratio

45％

40％

41％

42％

46％

Conserving and expanding tourism resources[Okinawa] Proliferating and regenerating sexually reproducing corals

ー

ー

ー

ー

1,000 clusters by 2026

Tourism Nation

Utilization of certified commercial materials

Ratio of paper items with international certification inconsideration with forest resources

15.9%

66.5%

66.5%

87.8%

100%

Regional Revitalization

Preventing illegal wildlife trade

Number of illegal wildlife transports

0

0

0

0

0

Consideration biodiversity in foodstuffs and commodity
products

Number of violations of in-house guidelines for
ESG risks in foodstuffs and products

ー

ー

ー

0

0

Reducing ecosystem impact around the airport[Tokyo] Number of incidents of inappropriate managementof water containing hazardous substances

ー

ー

ー

ー

0

Forming dynamic human resources portfolios

Manpower allocation to growing business areasーー+2,000 people+2,200 people+3,500 people v.s. FY2019

Ratio of women in management

18.4%

19.5%

21.9%

22.8%

30%

Employment ratio for persons with disabilities*1

2.62%

2.67%

2.64%

2.75％

3.2%

Percentage of men taking childcare leave

81.8%

106.3%

99.3%

87.2％

100％

Internal relocation through open recruitment

ー

ー

ー

30 people/year

100 people/year

Training cost per person¥449,480/person¥109,321/person¥84,469/person¥138,651/person¥338,000/person

Percentage of highly engaged employees

54.4%

54.4% (no survey)

51.7%

51.7% (no survey)

64.4%

Sales per capita

ー

ー

-50%

-2%

+15% v.s. FY2019

1,862 hours/person

1,878 hours/person

1,890 hours/person

1,884 hours/person

1,850 hours/person

Biodiversity Conservation

The JAL Group Value Creation Story

Action Items

Human Capital

Human Resources Portfolios
DEI

Promoting divers human resources*2*3

Careers/Reskilling

Providing opportunities for growth and learning

Total work hours*2

Improving labor productivity

79.0%

71.5%

74.5%

81.0%

100%

9.5 hours/person

8.0 hours/person

9.9 hours/person

10.5 hours/person

4 hours/person (linked to 1,850 hours of total
annual labor)

Employee consultation ratio

100％

100％

100％

100%

Maintaining 100%

*5

Family consultation ratio

37.5%

36.0%

40.7%

Disclosed during FY2023

75％

*2

36.7％

43.4％

64.6%

65.5%

70％

Uterine cancer screening

30.7%

38.6%

58.4％

60.5%

60%

Conducting human rights due diligence

Implementation ratio of human rights due diligence

ー

ー

ー

100％

100％

Respect for Human Rights

Respect for human rights of suppliers

Completion of human rights investigations of new key suppliers

ー

ー

ー

ー

100％

Resilience through Diversity

Respect for human rights of customers

Attendance ratio of education related to respectfor human rights

ー

ー

ー

81.9％

100％

Respect for human rights of employees

Ratio of employees who work long hours

ー

ー

ー

1.98％

0％

Strengthening the dissemination of information on
corporate website sustainability pages

Number of views

765,912786,229

893,469

840,170

1 million or more

Strengthening the dissemination of information toindividual shareholders and investors

Number of registered individual shareholders on
the email newsletter listーー

1,805 people

7,464 people

15,000 people

Preventing information leakage

Number of incidents

0

2*4

0

2

0

Number of Incidents to Prevent Corruption and Bribery

Number of incidents

0

0

0

0

0

Engagement

Improving the ratio of health check-up

Ratio of mammography*2

Disclosure and Dialogue
Promoting Fair Business
Activities

Confirmation ratio of integrity of critical suppliers

18%

37%

62%

81％

100%

Supply Chain Management

Number of aviation security audits of all caterer
factories and machine supply depots

2

2

2

2

2

Enhancement of BCM

Improving the effectiveness of BCP

Number of BCP-based exercises

1

1

4

4

2

Data Section

Promoting Responsible
Procurement Activities

Sustainability

Percentage of usage of annual paid leave

Average number of hours of overtime and holiday
work per month*2*2Growth Strategy

Increasing engagement

Management targets*1 Total value of Japan Airlines Co., Ltd. and JAL Sunlight Co., Ltd., a subsidiary that hires people with disabilities*2 Japan Airlines Co., Ltd. only
*3 Calculated based on the number of people in childcare leave applicants before FY2021*4 Number of information leakage incidents reported to authorities*5 Until FY2020, the data was compiled for family members aged 35 and over. From FY2021, the data is compiled for family members aged 40 and over.

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88

Chapter 4 Sustainability

Special Feature
Addressing Climate Change

Sustainability Initiatives
Biodiversity Conservation

Precaution of Environmental Pollution

Environment
Envionment

Respect for Human Rights

Noise Reduction

Effective Use of Limited Resources

Special Feature

Addressing Climate Change

Particularly relevant areas

Passengers

Cargo and Mail

Introduction

Environment

Basic Concept
Basic Concept (JAL Group Code of Conduct)

Challenges to be solved

Passing on the precious Earth to thenext generation (global environment)▶ pp.90-98

JAL Group Code of Conduct "Commitment to Society"

Biodiversity Conservation

WEB

Precaution of Environmental Pollution

WEB

Noise Reduction

WEB

Effective Use of Limited ResourcesWEB▶ pp.99-101▶ pp.101▶ pp.101* Net Zero Emissions: To balance actual carbon emissions from business activities and carbon reductions through initiatives (including the use of emissions trading and Carbon dioxide
Capture and Storage [CCS], the technology for capturing CO2 for long-term storage).

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

▶ pp.101-102

WEB

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

Growth Strategy

WEB

WEB

The JAL Group Value Creation Story

We maintain an awareness that air transport is
responsible for a number of negative effects on theenvironment. To fulfill our responsibility of passing
on the precious Earth to the next generation, weraise awareness of every employee and protect theenvironment in every aspect.
(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.
(2) Disclosure of environmental information andstakeholder dialogue
The JAL Group actively discloses environmental
information, maintains dialogue with stakeholders andexpands environmental preservation initiatives acrosssociety.

Addressing Climate Change

The JAL Group recognizes that an action to climate change is a particularly
important issue for the sustainability of the society. In June 2020, we announced
our commitment to achieve Net Zero CO2 Emissions by 2050 in order tosteadily promote various initiatives including CO2 emissions reduction as an airtransport operator’s responsibility. Also, we announced our support for the recommendations from the Task Force on
Climate-related Financial Disclosures (TCFD) in February 2021, and for the Science Based Target (SBT) initiative inMarch 2022.
In accordance with the Medium-Term Management Plan Rolling Plan announced in May 2023, the JAL Groupwill work to achieve JAL Vision 2030 and sustainably improve corporate value by positioning ESG strategy as the
topmost strategy in order to realize value creation and growth and by achieving medium to long-term growth throughthe management of risks and opportunities.
The JAL Group has established the JAL Group Environmental Policy based on this concept and a promotion system
under this policy. As a corporate citizen, we are working to preserve the environment and remove impediments to ourprogress.

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

Progress towards achieving FY2025 target

Environmental Management

Topic

FY2025 management target

FY2022 Result

Reduction of CO2 emissions

Total CO2 emissions below 9.09 million tons

8.19 million tons

Governance
The JAL Group's Board of Directors demonstrates a strong supervisory function through the periodic

Governance System

reporting (four times in FY2022) on the execution of initiatives concerning climate change and biodiversity.

Board of Directors

In the execution, the Sustainability Promotion Council, chaired by the President, formulates basic policies,
sets important targets, and manages progress, and deliberates and decides on policies to deal with issues.

President

Sustainability

Based on the JAL Group Environmental Policy,
Members: President, all officers
Sustainability Promotion Council
including EMS Director
President(EMS cases discussed at least biannually) Agenda: Approval of medium- andthe Environmental Management System (EMS)
long-term environment targets,Management
reviewis being constructed to accurately promote
Reportdeliberation on EMS operational status, etc.
Decision-making, appointment
environmental conservation activities while
Relevant officers, EMS Director
Sustainability Promotion Committee Members:
EMS
Director
Agenda: EMS progress management,Internal Audit Team(EMS cases discussed at least biannually)(General Manager, General Affairs Division)
making continuous improvements.
problem sharing, etc.
ReportInstruction
Targets and action plans are set for each
Secretariat(ESG Promotion Department)
Members: Divisional EMS Managers,
company and division based on management
ReportChief of Secretariat
EMS Manager Meeting
Divisional EMS Managers
Group companies
targets, such as reducing CO2 emissions andAgenda: Establishing and reviewing(meets biannually)(Vice Presidents of Administration)
EMS
divisional annual targets etc.
single-use plastics emissions. Quarterly reviews
supportAppointment/Instruction
ReportMembers: Divisional EMS staff,
and annual internal audits are also conducted
EMS Staff Meeting
Secretariat
Divisional EMS Staff in charge
to confirm compliance, system conformity, and(meets biannually)
Agenda: Concrete initiatives, progress(appointed in each division)and problem sharing, etc.
achievement of targets.
If a nonconformity is detected, corrective action, cause analysis, and an effectiveness review of the action are performed.
In addition, urgent matters are dealt with within the framework of risk management programs.
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.

Important issue

The Sustainability Promotion Committee, chaired by the Senior Vice President of the General Affairs
Division, deliberates on individual issues identified through the environmental management system (EMS)

Sustainability Promotion Council

and reports to the Sustainability Promotion Council.
The Medium-Term Management Plan incorporates responses to climate change into its management

Sustainability Promotion Committee

strategy and defines the eight materiality issues for sustainability in general to address social issues throughbusiness. With a strong commitment to achieve sustainable business operations and corporate value

EMS Internal Audit Functions

In accordance with ISO14001, EMS internal audits confirm the status of the organization, target management, environmental laws andregulations, education and training, communication, document information, and preparedness and response to environmental emergencies.
The contents of these audits are reported to the President at the management review.
It also functions as a mutual communication between the environmental division, which serves as an internal auditor, and the division to beaudited, leading to continuous improvement.

improvement through steady efforts to address these issues, we reflect external ESG ratings and CO2
reduction targets in executive remuneration as indicators.

■ Issues Presented and Reported at the Board of Directors and the Sustainability Promotion Council
in FY2022
Data Section

・Progress in efforts to address climate change (Formulation of targets and annual results)
・Information disclosure in line with TCFD recommendations
・GX Strategy to achieve Net Zero CO2 Emissions by 2050
For more information about officer remuneration, please refer to p.36.

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90

Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Addressing Climate Change

Biodiversity Conservation

Environment
Envionment

Precaution of Environmental Pollution

Respect for Human Rights

Noise Reduction

Effective Use of Limited Resources

Special Feature■ Conditions for Creating Scenarios to Achieve Net Zero CO Emissions by the JAL Group

Strategy■ Scenario Analysis
The international community is rapidly moving toward a 1.5℃ scenario as the benchmark for climate change action, with tighter
environmental laws and regulations in Europe, the return of the United States to the Paris Agreement, Japan's Carbon Neutral
Declaration and major reviews of Nationally Determined Contributions (NDC), and the de facto 1.5℃ target agreement at COP26.
In 2018, the JAL Group participated in the Project to Support Analysis of Scenarios of Climate Risks and Opportunities in line with
TCFD Recommendations organized by the Ministry of the Environment of Japan and predicted the society in 2030 based on two
scenarios (RCP8.5*1, RCP2.6*2) of the International 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 the century.

*3 IEA SDS Scenario: Sustainable Development Scenario, a pathway to full achievement of the Sustainable Development Goals by the International Energy Agency (IEA)*4 Air Transport Action Group (ATAG) - Global Alliance to Promote Sustainability in the Aviation Industry*5 — See: Waypoint 2050
https://aviationbenefits.org/environmental-efficiency/climate-action/waypoint-2050/

The JAL Group Value Creation Story*1 RCP8.5 Scenario: High-level reference scenario in the IPCC Fifth Report (equivalent to the maximum greenhouse gas emissions in 2100)*2 R CP2.6 Scenario: Low-Level Stabilization Scenario in the IPCC Fifth Report (Lowest emissions scenario developed with the goal of keeping future temperature increases
below 2℃)

Introduction

2。
Based on the 1.5 C scenario, the JAL Group announced that a target was set for Net Zero CO2 Emissions by 2050 at its shareholders' meeting in
June 2020. The below roadmap has been created considering risks and opportunities based on scenarios such as the IEA SDS*3 scenario.
With regard to the reduction of CO2 emitted by JAL Group aircraft, we are studying CO2 emissions reduction scenarios targeting 2050 and。
discussing future issues and measures to be taken with reference to the latest study materials of ICAO and IATA based on the 1.5 C pathway and*4*5
ATAG’s WAYPOINT 2050 .
In preparing scenarios, we set the growth of Revenue Ton-Kilometers (RTK) based on total international and domestic passenger demandrespectively, calculated the total volume of CO2 emissions up to 2050, and reflected the impact in each initiative.

■ JAL Group's Road Map Towards Net Zero CO Emissions
2・ The 4℃ scenario is an extension of the status quo (The structure of the aviation industry remains largely unchanged.)

4℃ scenario*The assumption that the CORSIA scheme will progress under the current plan

CO2Emissions(10k tons)

CO2 Reduction

1,200

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)
・Slowdown in low carbon/decarbonization trend(Strengthen and maintain relations with the government)

Upgrades tofuel-efficient
aircraft：50％

1,000
800

Continuing increase in LCC entrants
・Entry of LCCs, targeting price-sensitive customers, at a similar
New market entrants pace

Continuous improvement in fuel efficiency
・Improved fuel-efficiency of aircraft

Suppliers
・Progress with supersonic aircraft development(Aircraft manufacturers) (Investments in next-generation aircraft development at

Airline industry/
Company

Cost increase
・Heightened regulations and higher carbon prices (small impact)・Fuel-efficiency improves but next-generation aircraft
development and SAF diffusion slows down, no large change
in business landscape・High dependence on conventional jet fuel and rising fuel costs
due to soaring crude oil prices

Action

Review routes based on fuel-efficiency,
strengthen BCP, intensifying climate change(Invest in SAF to a certain extent)

the same pace)

Growing demand for international flights
・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 of demand
growth, develop routes to meet demand, expand
codeshare, strengthen weather information
gathering and analysis)

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 models
may be necessary due to diffusion of SAF and modal shift

Suppliers(Feedstocks)

ActionFeedstock 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

Actively invest in SAF development
Secure SAF, strengthen relationships with suppliers(Promote open innovation)

Alternatives

200

ActionStrengthen relations with the government(lobby SAF diffusion)(Consider developing SAF made from feedstocks other than agricultural products)

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
・Slowdown in growth due to shift to environmentally-friendly
modes, 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

Net Zero CO2Emission。
1.5 C scenario →0

FY20192025

Target of CO₂ reduction (net)
CO2 emissions with no efforts (BAU)

2030

2035

2040

Upgrades to fuel- efficient aircraft
Reduction in daily operations

2045

2050

Use of SAF

Reduction indaily operations

Utilizing the latest fuel-efficient today and aiming 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 emission in daily operations, Promoting collaboration across theentire industry, including air traffic control agency, airlines, and airport operations

Use of SAF

Collaboration with stakeholders to aim for decarbonized to secure SAF supply and reduce costs

Toward achieving our Net Zero CO2 Emissions by 2050, a new department dedicated to GX strategy was established in April 2023. JAL will continue
to promote GX strategy through a wide variety of methods, including the use of internal carbon pricing (ICP) and negative emission technologies, inorder to promote investment toward decarbonization, and the continuation of active efforts to use SAF*6, which is recognized as a particular focus.
In March 2022, we issued the world's first transition bond in the aviation industry to steadily upgrade our fleet to the most advanced equipmentwith high fuel efficiency (such as the A350 and 787), and it was selected as the first model example in Japan’s Aviation Industry for 2021 Climate
Transition Finance Model Projects by Ministry of Economy, Trade and Industry of Japan.
In March 2023, JAL became Japan's first airline to issue Transition-Linked Loans with specific use of proceeds, and the loan was selected as atarget of the Ministry of Economy, Trade and Industry's FY2022 Global Warming Countermeasures Promotion Program Subsidy. In addition, JALissued its second transition bond in June 2023, and is actively and continuously utilizing ESG finance. We are engaging in dialogue with investors togain an understanding of our company's initiatives.
In October 2022, the International Civil Aviation Organization (ICAO) reviewed its long-term CO2 reduction targets for 2050, and the CORSIA*7
baseline was revised. In line with this, it is expected that CO2 emission reductions by airlines will be promoted, and countries will strengthen CO2emission regulations and be active in CO2 emission trading. JAL recognizes that it is necessary to accelerate its response to climate change.
*6 S ustainable Aviation Fuel (SAF): CO2 emissions can be reduced by an average of 80 percent compared to conventional jet fuel in the life cycle from production andprocurement of feedstock to manufacturing, transportation and combustion.
*7 C
 ORSIA: Carbon Offsetting and Reduction Scheme for International Aviation: A system that requires international flights to purchase emission credits for exceeding the 2019
CO2 emission standards (baseline)

Data Section

Fuel-efficiency improvement continues
・Progress with development of next-generation aircraft
・Increased
needs for fuel-efficient next-generation
Suppliers(Aircraft manufacturer) aircraft(Strengthen relations with aircraft manufacturers
and increase investments in next-generation
aircraft development)

Airline industry/
Company

Use of SAF：45％

Sustainability

Development of policy toward low carbon transition
・Introduce carbon tax for decarbonization/low carbon society
・Restrictions on departures/arrivals of aircraft loaded with old jet engines with
Government ・Stricter fuel-efficiency regulations
high greenhouse gas (GHG) emissions in some countries/regions (pay fines)
・Support SAF development and diffusion toward decarbonization
・Tighter restrictions on land use in some countries/regions as part of climate
action, affecting feedstocks (crops) required for SAF production

New entrants Entrants using electric-powered aircraft
・Emergence of new carriers, primarily those using
New entrant
electric-powered aircraft for transport

400

Upgrades to fuelefficient aircraft

No change

2℃ scenario

2.0 。
C scenario →Reduction in daily
operations：5％

Growth Strategy

Suppliers(feedstocks)

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)

600

・Modal shift to rail and ship (coordinate with railways, etc.)

Engagement with suppliers, industry associations and governments is essential to ensure SAF stability

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Chapter 4 Sustainability

Special Feature
Addressing Climate Change

Sustainability Initiatives
Biodiversity Conservation

Environment
Envionment

Precaution of Environmental Pollution

Respect for Human Rights

Noise Reduction

Effective Use of Limited Resources

Special Feature■Risks and Opportunities
Classification

Time of Impact

Short-term

FY2023 to FY2025 (the period covered by the current mediumterm management plan)

Medium-term

FY2026 to FY2030 (the period up to JAL Vision 2030)

Long-term

FY2031 to FY2050 (the period to achieve Net Zero CO2 Emissions)Classification

Revenue or Cost Impact at the Time of Event (Annual)

The JAL Group defines risk as any event or action that may impede the achievement of theorganization's mission, objectives, or goals, and conducts semiannual risk surveys and assessments.
Those assessed as of particular importance are positioned as priority risks, and the status of risk
management is reviewed at the Group Risk Management Council chaired by the President, wherecountermeasures are discussed and decided.
With regards to environmental issues such as climate change and biodiversity, which are priority issues
in our management strategy, we implement risk management through the PDCA cycle based on theEnvironmental Management System (EMS), while considering relevant laws, regulations, and policy
trends in the international community.

■Risk Management System

3 billion yen to less than 30 billion yen

Risks related to climate change, both transition risks and physical risks, are managed in the risk management system of the entire JAL Group.

Large

30 billion yen or more

For a risk management structure chart, please visit the JAL website.

Short to Long

Small toMedium・Procuring credits meeting CORSIA eligibility criteria at a stable and reasonable price・<Oberseas> Participation in rulemaking (ICAO, IATA)・<Japan> Public-Private Partnership for Rulemaking through the Scheduled Airlines Associationof JapanMediumMedium

Impact of high SAF and hydrogen fuel prices on
earnings

Medium to Long

Medium to
Large

Aircraft

Delay in the development of aircraft using newtechnologies such as hydrogen and electric power
and in the development of airport infrastructure1

Long

Medium・Cooperation with aircraft and engine manufacturers
・Participated in the "Public and Private Sector Consultation on New Technologies for
Decarbonization of Aircraft" with the government and other relevant parties to formulate the"New Technology Roadmap for Decarbonization of Aircraft (draft)"

DemandDeclining in customer preference due to delayed
response to climate change and slowdown indomestic demand for air transport due to a modal
shift

Medium to Long

Small toMedium・Advocationg the Value of Aircraft Mobility after Thorough Efforts to Reduce CO2・Building momentum by disseminating the progress of sustainable flights and SAF procurement
in a planned manner, participating in symposiums, and strengthening the dissemination ofenvironment-friendly measures

For more information on Performance and Targets for Reducing CO2 Emissions, please visit the JAL website.

Operation

Impacts of the decrease in the number of passengers
and the increase in flight cancellations caused byclimate disasters due to the intensification of extreme
weather events and changes in precipitation andclimate patterns

Short to Long・Strenghen crisis management capabilities and enhance BCP in response to disasters■Targets and Initiatives for CO Reduction by 2030

Impact of the outbreak of a pandemic of infectious
diseases caused by ecosystem changes due to theincrease in average temperature on air transport

Short to Long

Large

Period ofOpportunities

Impact ofOpportunities

Actions to Expand the Opportunities

Medium・CO2 reduction of operational ingenuity and aircraft modification.
・Steady renewal of fuel-efficient equipment (Implementation of various types of financing, such as
the implementation of specific use of funds transition-link loans, selection of new small aircraft,
and acceleration of the introduction of fuel-efficient equipment)
・Cooperation with manufacturers, countries, and related organizations to improve air traffic
control and introduce aircraft using new technology
・Request for support based on GX transition bonds

SAF✓Acute✓Chronic
DemandMedium・Long-term, price-advantaged SAF procurement from manufactures in individual companies oralliances
・Active involvement in domestic SAF production and expansion fo SAF procurement sites
・Request for support related to the supply and manufacture of SAF to the government and energy
industries (At the Public-Private Councils for the promotion of SAF deployment, JAL participatedin discussions on stable production and sharing of SAF, as well as on making it less expensive,
and a "draft regulatory and support package" was presented.)

・Providing a Safe and Secure Air Transport Environment through Infectious Disease Control
・Development of flight plans based on passenger demand

Opportunities
Opportunities

AircraftOperated

Opportunities

GroundVehicleStable supply of aircraft fuel and reduction of costthrough diversification of fuel supply sources

CO2 reduction through the use of special airport
vehicles combining various power sources, and laborsaving airport operations through the use of newtechnologies such as autonomous driving

Short to Long

Medium to Long

Short toMediumEnhancing preferences and expanding aviation
demand through appropriate responses to diversifying
customer needs

Short to Long

Creation of new businesses based on the premise of
low carbon Securing new revenue sources through(Nest Generation Air Mobility, Freighter Business with
Ymato HD, LCC Business)

Short to Long

Medium to
Large

Small

・Procurement of biodiesel fuel and use of special electric vehicles
・Promoting airport decarbonization through public-private partnerships

Medium・Providing low-carbon, environmentally-friendly products and services
・Expansion of information disclosure on measures to address climate change, including reductionof CO2 emissions
・Building momentum by disseminating the progress of sustainable flights and SAF procurement
in a planned manner, participating in symposiums, and strengthening the dissemination ofenvironment-friendly measures

Demand93

JAL REPORT 2023

・Procurement of SAF consisting of multiple manufacturing methods
・All Japan SAF dissemination activities such as ACT FOR SKY
・Cooperation among the public and private sectors, including public and private sector councils
for the promotion of SAF deployment, to resolve technical and economic issues in domestic SAF
manufacturing, and supply side through GX transition bonds, support for business operation
costs including SAF feedstock procurement, and incentive support

Large

・Creating new businesses utilizing JAL Group assets
・Promotion of investment that contributes to reduction of CO2 using internal carbon pricing (ICP)WEB

https://www.jal.com/en/sustainability/esg/pdf/esg.pdf

Due to the nature of the air transport business, direct emissions from aircraft account for about 99 percent of CO2 emissions. Based on this fact,
we will first address the reduction of CO2 emissions from aircraft as our top priority, but we are also earnestly working to reduce CO2 emissions fromindirect emissions from ground facilities with similarly high targets.
Achieving our goals is by no means easy, but we will continue to lead the industry in cutting-edge initiatives in line with the Japanese government's
Clean Energy Strategy, while strengthening cooperation and collaboration with various stakeholders in Japan and abroad, in line with the internationalframework for reducing CO2 emissions.

WEB

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

2

The JAL Group has set specific targets for 2030 (a 10 percent reduction in total emissions from 2019 levels) in May 2021 as the first Japanese
airline and has taken the lead in promoting decarbonization of the global aviation industry through joint procurement of SAF in alliances and the useof ESG finance when renewing aircraft. Going forward, JAL will continue to accelerate our existing initiatives, such as the steady renewal of fuelefficient aircraft based on a stable financial base, steady implementation of JAL Green Operations, and strategic procurement based on specific SAF
loading targets, and by implementing the utilization of emissions trading and consideration of the use of negative emission technologies as additional
responses to the revised CORSIA baseline. We will boldly take on the challenge of achieving our targets.
Regarding SAF, while overseas manufacturing and supply chain construction activities are accelerating, it was clearly stated that SAF manufacturing
and distribution will be promoted in Japan in the Basic Policy for Economic and Fiscal Management and Reform 2023, Grand Design and the
Implementation Plan for New Capitalism, Clean Energy Strategy, and Basic Policy for Realizing GX. In order to realize its ambitious goal of replacing
10 percent of all installed fuel with SAF by 2030, the JAL Group will actively work toward commercializing SAF through public-private partnerships
and cooperation with domestic and international stakeholders.

■CO Reduction Targets and Achievements
2

Direction
emission（Scope1）

Indirect
emission（Scope2）

Base year

2022

FY19 Results

FY22 Results

9.09
million

8.19
million

FY13 Results

FY22 Results

80,00056,000

tons

tons

tons

tons

2025

2030

FY2025 CO2 reduction target

FY2030 CO2 reduction target

Total emissions: less than

Total emissions: less than

(Approx. 500,000 tons reduction)(Approx. 2 million tons reduction)

FY2025 CO2 reduction target

FY2030 CO2 reduction target

Total emissions: less than

Total emissions: less than

*67% Less than FY 2013*50% compared to FY 20139.09 million tons
*Less than FY 201954,000 tons

8.18 million tons

2050

Net Zero*90% compared to FY 201940,000 tons

Data Section✓Resource
efficiency✓Energysource✓Resilience✓Market
✓Products
and services

SAF

Improvements in flight operations, technicalimprovements in equipment.
Reduction of fuel consumption by improving fuelefficiency and CO2 Reduction through improvementof infrastructure, including upgrading of air traffic
control. (Reduction of Credit Purchase Costs)

For more information on Metrics and Targets, please visit ESG Data Book.

Sustainability

Types ofOpportunity

In order to pass on our precious Earth to the next generation, the JAL Group sets targets for environmental data such as CO2 emissions, waste andwater consumption, and discloses the results.

Growth Strategy

Physical Risks

Metrics and Targets

Rsik Mitigation Actions

Transition Risks✓Policies
andregulations✓Technology✓Market✓Evaluation

https://www.jal.com/en/sustainability/governance/riskmanagement/#risk

Impact of
Risk

Shortages in supply due to delays in the development,
manufacture and dissemination of SAF and bias insupply areas

Group Risk
Management Council

MediumPeriod of Event

Emissions Increase in credit cost by stronger national CO2
Trading emission regulations

PresidentLess than 3 billion yen

WEB

Risks

Board of Directors

Small

Risk
Types of Risk

Risk Management System

The JAL Group Value Creation Story

Climate change will have a negative impact on the air transportbusiness, which is based on the premise of operating in a "safe andsecure society," and as a result, it may pose an enormous risk tobusiness continuity.
In addition, the response to climate change, including the reduction of
CO2 emissions by airlines, may have various financial impacts, such as
upgrading to fuel-efficient aircraft and responding to carbon pricing.
The JAL Group organizes and examines these factors that affectits business in accordance with the TCFD classification of risks andopportunities related to climate change and lists them in the tablebelow. The categories of "timing" and "impact at the time of event" areas specified right.
The following was reviewed at the Board of Directors meeting on
August 1st., 2023.

Introduction

Risk Management

Net Zero*Voluntarily digging deeper, taking into account the Paris Agreement, etc.

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Chapter 4 Sustainability

Special Feature
Addressing Climate Change

Sustainability Initiatives
Biodiversity Conservation

Environment
Envionment

Precaution of Environmental Pollution

Respect for Human Rights

Noise Reduction

Effective Use of Limited Resources

Special Feature■Actions to be Taken by FY2030 Responding to Changes in the Business Environment

SAF Initiatives at JAL

the long-term goals for decarbonization in the international aviation sector and adopted to achieve Net Zero CO2 Emissions by 2050, as well as a

FY2018Overseas SAF
Procurement

framework (the calculation standards for reductions to be imposed on each airline) for reducing CO2 emissions.

CORSIA baseline review by utilizing emissions trading and other measures.

2

1

FY2019 Levels

Upgradesto Fuelefficient
aircraft
Reduction
in dailyoperations

900

Use of
SAF

CO2
reductions

Actual emissions

800

Amount required CORSIA offsets to be allocated from FY2024
FY2022

FY2025(actual)Less than
FY201910％less

compared to FY2019

tons

50,000Set flight schedules
100,000 aimed at reducing
tons
CO2 emissions

80,000

Expand Procurement fromoverseas and expand
700,000 coordination aimed at
tons
production and stablesupply of Japan-made SAF

tons

tons

Approx.

500,000

tons

Utilization ofcarbon-offset
programPriority and Strategic Measures

The JAL Group has set a goal of "Replacing 1 percent of all fuel on board (FOB) with SAF in FY2025 and 10 percent in FY2030." In order to achieve
our goals, we are promoting the procurement of SAF in Japan and overseas as well as working with stakeholders across industries in Japan toproduce and commercialize domestic SAF. We are also promoting the spread and expansion of SAF through participation in the development of"future generation SAF" such as synthetic fuels.

Public-Private Council• SAF loaded on Sustainable
Charter Flights

FY2030 Target
Replace 10% of
Jet Fuel to SAF(Approximately
400,000 KL)

2 Aemetis, Inc., California
Feedstock: Tallow
To be loaded in FY2024

5 Raven SR Inc.(California)

Raw materials: municipal solid waste
Scheduled to be installed in FY2024

3 Gevo Inc., Minnesota

Feedstock: Non edible corn
To be loaded from FY2026▶Procurement of SAF Overseas
In FY2021, we signed a joint agreement with oneworld alliance member airlines to purchase SAF from the United States, where SAF is alreadyproduced. SAF will be purchased from Aemetis Inc., which produces SAF from tallow, and Gevo Inc., which produces SAF from non edible corn.
This is the first initiative of the alliance, and by showing the need for SAF by multiple airlines, we will contribute to the diffusion and market expansionof SAF and promote carbon neutrality in the airline industry.
In FY2022, we worked with SAF producers and suppliers to establish a system to supply SAF in Singapore, Los Angeles, and Chubu Centrair
International Airport.
We also signed a memorandum of understanding to procure SAF from Raven SR in the United States, which uses municipal solid waste as
feedstock.

SAF

The term "sustainable aviation fuel" refers to aviationfuel that uses feedstocks that are not derived from
Non-petroleum derived
feedstock

Curb new CO₂ emissions

Jet fuel

forest residues. By utilizing the feedstock, new CO2
emissions can be reduced.
CO₂ absorption

CO2 emissions① Collaboration in the aviation industry
To achieve carbon neutrality in 2050, the development and diffusion of SAF is essential. In October
2021, JAL and All Nippon Airways Co., Ltd. (ANA) published a joint report "Toward Virtually Zero
CO2 Emissions from Air Transport in 2050" to build a stable supply 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 in Japan. 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 topromote SAF diffusion and other environmental measures, in collaboration with the government andrelated parties.

Sustainability▶What is Sustainable Aviation Fuel (SAF)?

that have absorbed CO2, such as used cooking oil and• Participated in SAF▶Accelerating Efforts to Produce and Stably Secure SAF in Japan■Use of SAF

petroleum. These products are made from feedstock

For Domestic SAF
Production TBD

2,000,000

Offset requirements are calculated and allocated basedon industry-wide emissions

Feedstock: Municipal solid waste
To be loaded from the latter half ofthe 2020s

feedstocks: Tallow and waste cooking oil
To be loaded from FY2022

tons

Push forward with securing credits that
conform to CORSIA certifications

1 Fulcrum BioEnergy, Nevada

4 Neste/ITOCHU Corporation

2 Approx.

Measures to comply with revised CORSIA baselines

FY2030for expanding awareness andpromoting of SAF• Established ACT FOR SKY,a voluntary organization

domestic
SAF flight madefrom clothes

Growth Strategy

CO2 emissions

370,000

1• Published joint report with ANA• First-ever2030

Accelerate and expand
introduction of
1,200,000 state-of-the-art aircraft
tons
A350 787 737MAX/
ATR:Approx.70 aircraftwith Raven SR and ITOCHU Corporation

The JAL Group Value Creation Story

2025

Expected emissions if no measures are taken

1,000

Marubeni and ENEOS

Internal emissions reduction

CORSIA will be addressed separately, with no change in JAL's reduction targets

ITOCHU Corporation• 5 Memorandum of Understanding signed

3 Gevo Inc.

Activities for Domestic
SAF Production

FY2022• Signed joint purchase agreements • Fulcrum begins production
with oneworld alliance members • 4 Signed contracts with Neste and2 Aemetis, Inc.

from clothes

2(10,000 tons)

1• Began producing domestic SAF • Launched feasibility study with

■Roadmap for Reducing CO Emissions up till FY2030

FY2021

FY2020• Investment to Fulcrum BioEnergy • SAF loaded on flights from San Francisco• Began loading SAF on A350 aircraft delivery flights

This is a major change in the framework, which revises the baseline for calculating the excess CO2 emissions of the international aviation sector to
85 percent of the 2019 level for the period 2024 to 2035. The JAL Group will respond to the changes in the business environment surrounding the

FY2019Introduction

At the 41st ICAO General Assembly held at ICAO Headquarters (Montreal, Canada) from September 27 to October 7, 2022, the ICAO announced

Joint report was published with ANA② Cross-industry collaboration
In March 2022, JAL, together with JGC HOLDINGS CORPORATION, ANA and REVO International Inc.,
launched ACT FOR SKY, a voluntary organization with the aim of promoting SAF, carbon neutrality, andthe importance of resource recycling, while changing the attitudes of citizens and companies, which
will hopefully lead to behavioral changes.
We started with 16 companies, and as of April 2023, we have expanded to 27 companies.
ACT FOR SKY promotes and expands domestic SAF through information exchange and discussion
among its members, as well as activities to raise awareness of society by disseminating informationand holding events aimed at realizing a decarbonized and recycling-based society.
JAL, as one of the managing companies, will continue to carry out concrete initiatives aimed at thedevelopment of aviation and the entire industry in Japan and the realization of a sustainable society.

Data Section

ACT FOR SKY logo and 27 participatingcompanies③ Collaboration with the government
At the FY2021 Study Group on CO2 Reduction 5.6 in the Aviation Sector, the target of replacing 10 percent of the fuel consumed by Japanese airlines
with SAF was set up as a common target of the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and Japanese airlines. To introduce
SAF, it was recommended that the development and production of internationally competitive domestic 40,000 SAF should be promoted and thatcoordination 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 MLIT and the Ministry of Economy, Trade andIndustry, was established as a forum for public-private discussions and joint initiatives on technical and economic issues and solutions. JAL is actively
participating in this forum.
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96

Chapter 4 Sustainability

Special Feature
Addressing Climate Change

Sustainability Initiatives
Biodiversity Conservation

Environment
Envionment

Precaution of Environmental Pollution

Noise Reduction

Respect for Human Rights
Effective Use of Limited Resources

Special Feature■Upgrading to Fuel-Effocient Aircraft■Measures to Reduce CO Emissions from Ground Equipment

In September 2019, we began introducing Airbus A350-900 on domestic
routes and currently we have 16 aircraft.
From 2023, we will begin to introduce Airbus A350-1000 on internationalroutes, and we will introduce the new Boeing 737-8 in 2026 as areplacement for the currently operating Boeing 737-800.
These aircraft are fuel efficient, have low noise, and can reduce CO2
emissions by 15 percent to 25 percent compared to previous models.
The newly introduced aircraft will use funds raised through a public offering
in FY2020. It will also be funded by the SDGs Bonds, the world's firsttransition bond issued by the airline industry in March 2022, and will beutilized to steadily upgrade to fuel-efficient aircraft.
As the development of next-generation aircraft equipped with newtechnologies powered by electricity and hydrogen increases, we will
cooperate with aircraft and engine manufacturers topromote technological reforms.
Since the development of infrastructure, including
airports, is also essential for the next generationof aircraft, we will work with stakeholders such as
the national government and airport companies toimprove the environment.

With regard to ground equipments, initiatives to reduce unit energy
consumption by one percent or more on average are in 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
been certified as “S Class,” an excellent business operator, for eight
consecutive years since 2015.
To reduce CO2 emissions from airport vehicles, Tokyo International
Airport (Haneda) is introducing electric-powered vehicles.
At Narita International Airport, used cooking oil, in the Dining Port
Goryo Kaku restaurant operated by the JAL Group, was collected
and processed into biodiesel fuel. This fuel, a local production andconsumption project, is then used in ground support equipments at
Narita International Airport.

100％

15％

14％

14％

14％

14％

85％

86％

86％

86％

86％

80％
60％
40％
20％
0％

FY2021

FY2022

FY2023

FY2024FY2025

JAL
Green
Operations
▶
JAL
Green
Operations
CO2 Reduced in FY2022

At Takeoff

86,500 tons

10,700 tons

22,500 tons

5.
Ascent with
Early
Acceleration

6.
Adjusting
Flight Speed

3.
Reduce APU
Usage

2.
Reduction of
Onboarded
Weight4.
Closing
Window
ShadesIn Flight

DuringDescent

At Landing

Total

9,300 tons

28,700 tons

14,100 tons

194,700 tons

10.
Idle Reverse
11.
Single-EngineTaxi-in

63,000households*
CO2 emissions
from electricity
use in onemonth(*equival ent to
Saitama City)

7.
Continuous
Descent
Operations
8.
ReducedFlaps
9.
DelayedFlap & Gear

22,900 tons

14.Engine Upgrades and Replacement

Voice

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JAL REPORT 2023

Image when using a smartphone

JAL Carbon Offset (for Individual Customers)
https://www.jal.com/en/sustainability/environment/
climate-action/emission_trading/#carbon

Topic
CONTRAIL Project
Other measures and data
related to "improvements in daily
operations" are also posted on
our company website.
WEBhttps://www.jal.com/en/
sustainability/environment/
climate-action/co2-emissions/

A Fuel Efficiency Flight Test was Conducted for the First Time in the World by Applying Riblets on Sircraft Coating Surfaces.
In FY2022, JALEC applied a shark skin inspired riblet surface with a groove depth of only 50 microns (about the thickness of a humanhair) to the aircraft coating surface to reduce friction.
By applying this riblet over the aircraft coating surface , it can reduce the skin friction. It is expected to improve fuel efficiency by up to
2 percent.
During the preparations, it was difficult to find the optimal method such as paint, additives, coating thickness and drying time because
the riblet coating of the paint is very sensitive.
Through trial and error, by utilizing the extensive knowledge and experience of our painting technology experts, we were able tosuccessfully execute this technology for the first time in the world.
In the future, we plan to expand the riblet areas on the aircraft coating surface to establish more optimal methods to further reducing
CO2 emissions. By improving fuel efficiency we plan to gradually expand the aircraft with riblet coating to international flights, where
the reduction of fuel consumption is more effective.

In order to accurately predict climate change, it isessential to observe the CO2 concentration andunderstand its circulation at multiple locations,
including the sky.
The JAL Group has been using aircraft to conduct
atmospheric observations since 1993, and in
2005, a public-private CONTRAIL project was
launched by five organizations (National Institute ofEnvironmental Studies, Meteorological ResearchInstitute, Jamco Corporation, JAL Foundation,
Japan Airlines) to expand the observations.
This project, the first of its kind in the world tocontinue global observations of greenhousegases (such as CO2) in scheduled flight, involves
the installation of an observation equipment on acommercial aircraft to conduct frequent, long-term
observations in the sky. The data is being used byresearchers around the world.

Data Section

ISHIBE Satoshi
System Engineering Group, Aircraft MaintenanceCenter, OsakaIn cooperation with CHOOOSE, a Norwegian company, we offer JAL
Carbon Offset. This program for individual and corporation customers
enables to offset the CO2 emissions from their flights.
At the Sustainable Charter Flight held in November 2022, we worked
to achieve Net Zero CO2 Emissions using the individual program bysupporting projects that absorb CO2.
In addition, the corporate program allows companies to provide
reports on CO2 emissions visualization, select credit programs,
implement carbon offsets, and issue certificates.
We will continue to work with our customers to reduce CO2 emissions.

In FY2022, the reduction
result was 2.4% comparedto the FY2025 target of
2.5 % of total emissions.

JAL Green Operations

Efforts Outside 12.Engine Washingof Operations 13.Improvement of Wing Tips and Fuselage, as well as Riblets▶JAL Carbon Offset

Sustainability

1.
Optimized
Flight Plans

Providing Carbon Offset Programs
In addition to responding to ICAO CORSIA which is an international

Growth Strategy

In order to reduce CO2 emissions, various efforts are taken in our daily operations, such as eco-friendly flights by arranging the timing of operations
and steering, reducing the weight of the aircraft and shortening the flight route. These efforts are collectively called “JAL Green Operations”.
We monitor the actual flight routes on a daily basis, and even at the flight planning stage, we create a flight route plan that matches the actual
situation, and so on, in order to optimize the loaded fuel on board (FOB).
In addition, the implementation rate of the early acceleration ascent method, which has been actively promoted for some time, has increased
significantly because the speed limit stipulated in the Civil Aviation Act was changed after discussions with the Civil Aviation Bureau, making it easier
to implement.

While Parkedin Spot

Electric-powered towing tractors

emissions reduction and offset scheme, we offer "JAL Carbon Offset"
to our customers.

■Reducing CO2 Emissions in Daily Operations

Preparing for
Departure

The JAL Group Value Creation Story

省燃費機材割合の推移
Percentage of fuel-efficient aircraft

Introduction

2

CO2 concentration stations in 2021
https://cger.nies.go.jp/contrail/cme/fstatis_2021.html

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Chapter 4 Sustainability

Special Feature
Addressing Climate Change

Sustainability Initiatives
Biodiversity Conservation

Precaution of Environmental Pollution

Noise Reduction

Particularly relevant areas:

Respect for Human Rights
Effective Use of Limited Resources

Passengers

Special Feature

Mileage, Lifestyle and Infrastructure

Basic Concept*See "TNFD Beta Framework (v0.4)"

The JAL Group follows the LEAP approach proposed by the TNFD, identifying natural dependencies and impacts as well as priority areas, tosystematically assess nature-related risks and opportunities on a scientific basis.
*LEAP approach: "LEAP" is an acronym for the four phases of Locate, Evaluate, Assess, and Prepare. It is an information disclosure guidance that consists of "Locate,"
which identifies the nature interface throughout the supply chain and identifies priority locations; "Evaluate," which diagnoses the dependencies and impacts between
the business activities and nature; "Assess," which evaluates the key risks and opportunities based on the results of the diagnosis; and "Prepare," which prepares a
response to nature-related risks and opportunities and reports back to investors.

Nature, consisting of freshwater, ocean, land and atmosphere, provides various benefits (ecosystemservices) to the JAL Group's business. For example, a stable climate maintains a suitable operating
environment for aircraft (regulating services) and provides places and opportunities for tourism (cultural
services), leading to the creation of human flows. In addition, blessings such as food (supply services)
lead to the creation of commercial and logistics flows.
In March 2023, the JAL Group held an internal workshop to explore contacts with nature, inviting a
lecturer from the World Wide Fund for Nature Japan (WWF Japan) to identify the dependencies andimpacts of the JAL Group's air transportation business on nature. The dependence was identified as"flights to natural heritage sites, beach resorts, and other nature-rich tourist destinations" and "salesof local food products," while the impact was identified as "possible environmental pollution aroundairports" and "concerns about the impact on the ecosystem during the production of SAF".

Land

Ocean

Ecosystems such as
tropical rainforests,
biological resourcesof cultivated land,Land, etc.

Ecosystems such as
oceans, aquaculture
resources, etc.

SocietyFreshwater

Ecosystems such as
rivers, water resources,
aquaculture resources,etc.

Atmosphere・Comliance with internal guidelines with reference to the IUCN Red List, etc.
・Use of food and merchandise produced with sustainability taken into account.

Over tourism in nature-rich tourism destinations.
Complicity in illegal wildlife trafficking.
Environmental contamination to the surroundings of the airport (e.g., if improper water treatment occurs).

Realization of tourism based on sufficient management of human flows.
Educate employees and collaborate with airport authorities to prevent illegal wildlife trafficking.
Thorough prevention procedures and post occurrence response procedures.

Outline of Opportunities

Actions to Expand the Opportunities

Creating demand for nature tourism.

Balancing tourism and nature conservation by encouraging appropriate tourism through the training of tourism
guides, etc.

Creation of commercial distribution and logistics through the transportation of foods
and merchandise that are products of a rich ecosystem.

Contribution to regional economic revitalization through high-speed fresh transportation of foods andmerchandise.

Securing tourism resources through protection, restoration, and rehabilitation of
ecosystem.

Implementation of measures such as the coral sexual reproduction project.

Securing a stable supply of commercial materials.

Use of sustainable commercial products (e.g. certified commercial products) in collaboration with suppliers.

Risk and Impact Management

Metrics and Targets

The JAL Group defines risks as any event or action that may
impede the achievement of the organization's mission, objectives,or goals, and conducts semiannual risk surveys and assessments.
Those assessed as of particular importance are positioned aspriority risks, and the status of risk management is reviewed at theGroup Risk Management Council chaired by the President, wherecountermeasures are discussed and decided.
With regards to environmental issues such as climate change andbiodiversity, which are priority issues in our management strategy, we
implement risk management through the PDCA cycle based on the
EMS, while considering relevant laws, regulations, and policy trends inthe international community.

The JAL Group recognizes that biodiversity is affected by various
environmental issues, including climate change, resources, andenvironmental pollution, and commits to comprehensive solutions. In
addition to targets related to biodiversity conservation, we disclose
environmental data such as CO2 emissions, waste and water
consumption.
For targets and KPIs, visit our company Web site.
WEB

ESG DATA https://www.jal.com/en/sustainability/esg/pdf/esg.pdf

Main topics

Risk Management SystemWEB https://www.jal.com/en/sustainability/governance/riskmanagement/#risk

Biodiversity
Conservation

Subtopic

Metrics

FY25 Targets

Collaboration with external
stakeholders to help expand Preservation and[Okinawa] Number of
1,000 seedlings by
the area of protected areas expansion of tourism sexually reproduced corals
2026
such as national parks and resources
grown
OECMs by 2030
Percentage of in-flight items
Use of certified commercial products
100%
using certified paper
Number of illegal wildlife
Prevention of illegal wildlife trade0transports
Number of violations ofConsideration for biodiversity in the foods andinternal guidelines for ESG
0merchandise we handle
risk food ingredients andcommercial products[Tokyo] Number of incidents
Reducing the impact on the ecosystemsof improper management of0
surrounding the airport
water containing hazardous
substancesWEB

Conservation of water resources https://www.jal.com/en/sustainability/environment/limited-resources/#anc08■Sexual Reproduction and Coral Regeneration Project

Data Section

Our efforts and data on water resources issues are also posted on our company website.

JAL REPORT 2023

Use of SAFs (such as ICAO CORSIA-eligible fuels) that take into account raw materials, land use and ecosystemconservation in the production areas, etc.

Restrictions on foods and merchandise used due to more strict regulations on theuse of wildlife to protect rare species.

Focused and Strategic Measures

The JAL Group recognizes water as an important resource that affects climate change and biodiversity and commits to its sustainable use.
The JAL Group's water intake areas are mainly in Japan, where water stress levels are considered low (analysed using Aqueduct*), and we recognizethat its risks are low. We will continue our efforts to conserve water resources such as the recycling of water for washing aircraft parts, to name a*Aqueduct: Water risk analysis tool provided by the World Resources Institutefew. Additionally, the analysis will be reviewed annually.

99

Sustainability Performance
Opportunities✓Protection, restoration and rehabilitationof ecosystems✓Sustainable use of natural resources

Ecological impacts in securing raw materials and manufacturing processes
associated with the use of SAF.

Reference: TNFD

Water Related Risks

ESG DATA https://www.jal.com/en/sustainability/esg/pdf/esg.pdf

Classification
Opportunities based on businessperformance✓Products and services✓Market✓Reputation

Risk Mitigation Actions
・Provide a "safe and secure" air transportation environment through measures to prevent infectious diseases.
・Develop flight plans based on passenger demand.
Promote efforts to restore natural tourism resources in cooperation with local communities.

CO2,
air-quality,
etc.

■Priority Location Identification

WEB

Transition Risks✓Policy and Law✓Market✓Reputation

Outline of Risks
Impact on air transportation operations by pandemic outbreaks of infectious
diseases caused by the change of ecosystems.
Loss of natural tourism resources and reduced passenger volume due to changes in the ecosystem.

Sustainability■Nature-related Dependencies & Impacts

Classification
Physical Risks✓Acute risk
✓Chronic risk

Growth Strategy

The JAL Group's Board of Directors demonstrates a strong supervisory function through the periodic reporting (four times in FY2022) on theexecution of initiatives concerning climate change and biodiversity.
In the execution, the Sustainability Promotion Council, chaired by the President, formulates basic policies, sets important targets, manages progress,and deliberates and decides on policies to deal with issues.
The Sustainability Promotion Committee, chaired by the Senior Vice President of the General Affairs Division, deliberates on individual issues
identified through the environmental management system (EMS) and reports to the Sustainability Promotion Council.
The content of this disclosure based on TNFD's recommendations was reported to and approved by the Board of Directors in August 2023.

The loss of biodiversity can be a significant risk to the continuance of our air transportation business, and managing it can also lead to opportunities.
The workshop also assessed nature-related risks and opportunities based on the identified dependencies and impacts, which are summarized in thetable below. In the future, we will deepen the assessment of risks and opportunities by analyzing financial impacts as well.

The JAL Group Value Creation Story

Governance■Risks and  Opportunities on the Organization's Businesses

Opportunities

Based on the Task Force on Nature-related Financial Disclosures (TNFD) information disclosure framework, the following discloses information fromthe four perspectives recommended by the TNFD: governance, strategy, risk and impact management, and Metrics and Targets.

The JAL Group identified priority areas by focusing not only on water, but also on biodiversity itself, including
ecosystems such as forests and oceans, and the various species that inhabit them.
JAL Group's destinations were matched with areas of significant biodiversity in WWF's Biodiversity Risk Filter, andit was found that many areas in Japan are at high biodiversity risk. Hokkaido, Kagoshima (Amami), and Okinawa,
which have high demand for nature tourism, were identified as areas where our businesses are dependent on
nature. Also, Tokyo was identified as an area with high priority for biodiversity conservation, where operations havean impact on nature because it is a major airport.

Risks

The JAL Group recognizes that the preservation and restoration of nature is a particularly
important issue for a sustainable society, as it strengthens the social infrastructure, andcommits to comprehensive solutions to biodiversity and climate change.
To date, the JAL Group has actively promoted the conservation of biodiversity, including
the conservation of species through the prevention of illegal wildlife trade, the preservation of ecosystems throughplant quarantine, and the conservation of natural resources at World Natural Heritage sites. In addition, to address
climate change, we have been working on upgrading to fuel-efficient aircraft, implementing JAL Green Operations
regularly, and utilizing SAF in order to achieve Net Zero CO2 Emissions by 2050, while taking into consideration theimpact of CO2 reduction efforts on the ecosystem. (Disclosure of information on climate change based on the TCFD)
The JAL Group aims to build a society in which nature and people coexist in harmony through its business activities.
Based on the premise of reducing our impact on nature, we will create the flow of people through the preservationand experience of nature, and the flow of goods and logistics through foods and merchandise that are productsof rich ecosystems. In this way, we will create relationships and connections through mobility, and through therealization of "Nature Positive," and will create a future in which everyone can feel affluence and hopeful, thereby
enhancing our corporate value. To realize these goals, we will work under our "Commitment to Nature"

Strategy

Biodiversity Risks

Cargo and Mail

Introduction

Biodiversity Conservation

Environment
Envionment

One of the attractions of Okinawa are coral reefs. Coral reefs are not only beautiful but also have many roles,
such as being a place where living organisms coexist and live. However, in recent years, the number ofcoral reefs has been decreasing due to the rising sea temperatures and the occurrence of large numbers ofhazardous crown-of-thorns starfish. Japan Transocean Air (JTA) has formed a council with local companies
that support its efforts to regenerate coral reefs in Ishigaki and Kume Islands using a new method called the
Sexual Reproduction Method.

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特に関係する領域

Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Addressing Climate Change

Biodiversity Conservation

Environment
Envionment

Precaution of Environmental Pollution

Respect for Human Rights

Noise Reduction

Effective Use of Limited Resources

Special Feature■Prevention of Illegal Wildlife Trade

Progress towards achieving FY2025 targets■Considering Biodiversity in Foodstuffs and Commercial Products

In July 2022, the JAL Group established in-house guidelines for foodstuffs and commercial materials to be handled toconsider biodiversity from the viewpoint of protecting endangered animals.
We are promoting the guidelines within the company to properly understand the importance of biodiversity conservationand to recognize the relationship between foodstuffs and commercial products.

On November 28, 2022, JALJKT marked Indonesia's tree planting day by planting mangroves in the PIK Mangroves
Ecotourism Area as part of their SDGs initiative. The purpose of planting mangroves is to restore and maintain thequality, functions, and benefits of the mangrove forests. This initiative is a concrete action taken by JAL to conserve
local environmental biodiversity. In total, 250 mangroves were planted. Preparation for the activity included items
such as plastic gloves, rubber boots, hats, and personal hygiene tools. The event was attended by almost all staff
in the branch as well as the Asia and Oceania region. The founder of mangrove Jakarta, Mr. Paundra Hanoetama,
expressed gratitude for Japan Airlines' concern for the environment and hopes that this initiative can be continued inother places. The participants enjoyed this activity and it became a memorable moment for them.
Rudy Tirtonadi Banuarli, General Affairs Section, Jakarta Branch, Senior Vice President Office, Asia & Oceania

Particularly relevant areas:

Passengers

Cargo and Mail

Passengers

Reduction of plastic waste

In May 2021, the JAL Group formulated a target for FY2025 tosolve the problem of reducing single-use plastics, a contributing
factor to global warming and ocean pollution.
Through the promotion of 3R (Reduce/Reuse/Recycle) + 1R
(Redesign) and with the cooperation of our customers, we areattempting to eliminate all new petroleum-based products inall single-use plastic products provided to our customers at
cabins and lounges, and to replace the items thoroughly toenvironmentally friendly materials in airports and cargo.

Cargo and Mail

Effective Use of Limited Resources

responsible for a number of negative effects on
the environment and aims to live in harmony withresidents around the airport.
■ To reduce noise, we are upgrading our fleet tothe latest low-noise aircraft that comply withnoise standards. We are also actively introducing
noise abatement operational procedures.

Passengers

Cargo and Mail

FY20250blend of environmentally friendly
materials

Others (cargo, airports)

Cabins and Lounges

Reducereduce food waste and eliminate petroleum-derived single-use plastics products in all aspects of our business,
which will contribute to reducing greenhouse gas emissions.
■ To this end, we will work with our customers to reduce food waste and the use of plastic products at every
touchpoint, including our cabins. In addition, we will work with our suppliers to promote initiatives such as supply
chain reduction.
For more on "Reducing Food Waste," see "Sustainability of Restaurants in the Sky" on pp.103-104.

Redesign

100% recycled plastic bottles

Redesign

Redesign

Recycle50% biomass of plastic bags forbaggage covers for delivery service

Plastic sheets for packing cargo madefrom recycled materials, recycledfrom 40 years ago

RecyclePlastic

Paper

Redesign

・Replaced the lids of paper cups with paper productsthat have acquired international certification
・Recycling of paper cups started on some domestic flights

Redesign
Containers and tray mats that haveacquired international certification

Recycling of Inflight Paper Cups

The JAL Group has been recycling paper cups (lids, cups, muddlers) on some domestic routes since
December 2022 in cooperation with Nippon Paper Industries Co., Ltd.
In the past, used beverage paper products were incinerated as general waste from a technical andsanitary standpoint. However, the JAL Group has made it possible to recycle used paper cups bycreating a unique recycle chain whereby paper cups used for inflight services are properly sorted andcollected by the JAL Group, and then transported, accumulated, baled, and recycled by the Nippon
Paper Group using advanced technology.
Customer cooperation is essential for sorting the items. We will continue to work with stakeholders toaccelerate the promotion of resource recycling.

Video of paper cup
recycling
Sorted collection of paper cups

Recycling of Domestic Boeing 777 Aircraft Achieved a Recycling Rate of 96 Percent
We have been selling Boeing 777 aircraft, which operated domestic flights until the end of FY2021, to overseas markets. We have also taken
the first initiatives in Japan to recycle some of the materials used in the aircraft.
In addition to recycling metals such as aluminum and iron, we also recycled plastics and carbon fiber composite materials (CFRP) as materials
resulting in a 96 percent recycling rate.
We are also working on manufacturing and selling upcycled products to familiarize air travel by utilizing
discarded parts.
We will continue to take on new initiatives to realize a more sustainable society.

Data Section

recycling-based society that uses limited resources effectively.

■ To promote the effective use of limited resources, we will practice the 4Rs (Refuse, Reduce, Reuse, Recycle) to

Cargo, airports
Change 100% to environmentally-friendly materials FY22 result : 91%

Containers made from recycledplastic bottles

Voice■ To fulfill our responsibility to pass on the precious Earth to the next generation, the JAL Group aims to become a

JAL REPORT 2023

ReduceTopic

Basic Concept

101

Recycle・Wash and use repeatedly
・Lid made from 100% recycled plastic■ The JAL Group is aware that air transport isParticularly relevant areas:

No new petroleum-made items

FY2025

Sustainability

pollution to fulfill its responsibility to pass on the
precious Earth to the next generation.
■ We will strive to reduce carbon emissions fromaircraft and factories, which cause environmental
pollution.
■ To achieve this, we will reduce emissions of
nitrogen oxides (NOx), carbon monoxide (CO)and hydrocarbons (HC) by using aircraft enginesthat comply with appropriate standards. We
will also manage and reduce the release ofhazardous chemical substances in accordancewith the regulations.
  Aligned with 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 percent or
lower.

Petroleum-derived plastics only

FY2019FY2019Growth Strategy

Basic Concept■ The JAL Group will strive to prevent environmental

Image of Reduction of Single-use Plastics Consumption Toward FY2025 Targets*Subject: Japan Airlines

Passenger cabins and lounges
Elimination of petroleum-derived plastics FY22 result : 45%
Reuse

Basic Concept

Discarded 45%
Replaced 91%▶Examples of Single-use Plastics Reduction

Noise Reduction
Particularly relevant areas:

FY2025 management targets

Cabins and Lounges: Elimination of all new petroleum-based plastics
Cargo and Airports: 100% switch to environmentally friendly materials

Focused and Strategic Measures

Mangrove Planting Activities

Precaution of Environmental Pollution

FY2022 Results

Important issue

The JAL Group Value Creation Story

Voice

Introduction

Single-use Plastics Reduction

In June 2018, the JAL Group signed the Buckingham Palace Declaration, promoted by the International Air Transport
Association (IATA), to promote the prevention of illegal wildlife trade.
In the Amami-Okinawa region, where many rare wildlife live, we are working with the Ministry of the Environment andlocal governments to participate in training sessions to prevent poaching and smuggling, to test the use of applications
to identify rare wildlife, and to establish a cooperative system in cases where it is difficult to identify species.

KAMEDA Hirofumi, Head of New Business Development Team, Japan Airlines Co., Ltd.
Engineering and Maintenance Division Business Promotion DivisionTOP

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Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Addressing Climate Change

Biodiversity Conservation

Precaution of Environmental Pollution

Environment
Envionment

Respect for Human Rights

Noise Reduction

Effective Use of Limited Resources

Special Feature

2

Approach

Providing "Safe," "Secure," and "Sustainable" and Tasty Food
Introduction● Procurement of certified ingredients

We use foodstuffs that have obtained global third-party certifications that takes into consideration food safety, environmental impact,biodiversity, workerʼs rights, and local communities.

Special Feature

Sustainability of Restaurants in the Sky
The JAL Group Value Creation Story

Uses MSC certified ingredients

We must keep our focus on the various
challenges of food that support life.
Greenhouse gas emission accompanied
by food is 21 percent to 37 percent of
all emissions, but one third of the foodis discarded.
There are a variety of issues surrounding
food, including overfishing and theimpact of pesticides on biodiversity,
worker’s rights, and nutritional bias.
Our efforts will continue to provide
customers with safe, sustainable, anddelicious meals that are friendly toecosystems and labor, and to recycle
them into resources without waste.

Uses ASIAGAP and
ASC certified ingredients● Continuous use of foodstuffs● Pursuit of food safety

We offer meals based on the "The Future 50 Foods" advocatedby Unilever & UK-WWF, which is characterized by high nutritional
value, low susceptibility to global warming, and soil recovery.

The hygiene auditors of JAL are well versed in FSSC22000,
an international standard for food safety, and conduct annual inhouse and lounge hygiene audits of inflight meals, in accordancewith the internal regulations for food safety.

PRIMARY LOGO

Implement a Food Waste Reduction Program that Includes the Supply Chain

・ Composting all food loss including
supply chain
・ Recycling-oriented vegetable

Purchasing/Storage Loss
・ Reservation analysis
・ Stock/buying control

SINGLE COLOUR LOGO

How hygiene auditing is done.
JAL auditors check for food safety
quality

Cooking Loss

Food Waste

・ Composting all food loss
・ Prevention of excessive removalof edible parts and reuse of edge
materials
・ Loss analysis by category

・ Campaigns to prevent leftover food・ JAL Meal Skip Option
・ Donations to welfare councils

Voice
Sustainability

・ Utilization of disposable crops
・ Reuse of non-standard crops

Processing LossSINGLE COLOUR LOGO

Supervised by KONO Fumiko"A dish from the list of “The Future
50 Foods"

Initiatives

Post-Harvest Loss

Rainforest Alliance
Certified Coffee

Growth Strategy

1

The JAL Group has acquired
MSC/ASC distribution cer tification, ASIAGAP certification,and ISO14001 certification.

KONO Fumiko
Cooking Producer, On-the-go Chef,
Supervisor of JAL inflight meals

The soup which we made only withthe stem of the broccoli discarded
at a stage of the production. We areplanning our next soup that utilizes thepeel of onion.

103

JAL REPORT 2023

A plate from the "The Future 50
Foods" list

JAL Royal Catering inflight mealcatering facility

The spinach which grew with compost
which are composted by Residues of
the JAL inflight meal processing process.

Factories that have acquired environmental certification (ISO14001) and
set an environmental goal of reducing
food Loss.

Compost device for cooking loss
JAL Royal Catering makes compost
daily from its cooking residues andrecycles unused food materials.

JAL Meal Skip Option Service
This service is designed to meet theneeds of customers who wish to rest in
the cabin without inflight meal.

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JAL REPORT 2023

Data Section

Lounge ”Farmerʼs soup”

Delicious and Sustainable Meals
When planning tasty and sustainableinflight meals, our first consideration is
the needs of our customers.
While we value communication with ourcooks, including exchanging opinionswith our crew, we aim to prepare inflightmeals that customers would want to talkabout.

104

Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Environment

Framework for respecting human rights

Respect for Human Rights
Special Feature

For more information on the JAL Group Human Rights Policy, please visit the JAL website
https://www.jal.com/en/sustainability/codeofconduct/pdf/human-rights_en1908.pdf

Framework for Respecting Human Rights
The JAL Group promotes efforts to respect human rights based on its human rights policy and internal rules governing the mechanism and operationof human rights due diligence (hereinafter “Human Rights DD”).
Aiming to respect the human rights of all stakeholders, including suppliers, customers, and employees, we set ten priority issues in FY2022 from thefollowing three perspectives: supply chain management, provision of products and services, and improvement of the internal environment.

Grievancemechanism

Risk
reportingSpecific details of each step are as follows:

Through its business activities, the JAL Group aims to realize a society in which all human rights are respected, and people can play an activerole with peace of mind. To this end, we strive to respect the human rights of all stakeholders, including suppliers, customers, and employees, inaccordance with the JAL Group Human Rights Policy. Our basic approach to each stakeholder is as follows.

■Suppliers
We will work together with our business partners to build a sustainable supply chain that includes respect for human rights and appropriate labor
practices. We also conduct risk assessments and monitoring to confirm the soundness of our supply chain. In addition, we will continue to procure
products and meals that take human rights into consideration, such as service supplies and meals provided on flights and in lounges.

■Customers
We will work to make all customers feel comfortable and secure.
We will focus on three areas: improving accessibility, which aims at stress-free travel and provides a variety of travel options; the prevention of humantrafficking, which aims to prevent complicity in human trafficking through air transportation; and the prevention of human rights violations throughexternal communications so as not to cause unintentional human rights violations through external dissemination.

■Employees
In addition to improving the working environment by preventing harassment, reducing long working hours, and preventing personal information
leakage, we will promote initiatives to respect diversity by promoting DEI, such as women's advancement in the workplace and supporting the active
participation of people with disabilities.

1. We annually confirm that there are no issues with the policy contents. After confirming the contents, there were no changes to the policy in
FY2023.

2. Human rights risks assessment

2. We conduct human rights risk surveys for all divisions within the JAL Group and all Group companies. We conducted a similar human rights
risk survey in FY2023.

Stakeholders

3. Human rights risks
evaluation/extraction of issues

3. Among the risks that have emerged from the human rights risk survey, we have identified human rights issues that need to be addressedwith particular emphasis. In FY2023, we identified "prevention of human rights violations by external communications" as a new issue,
which was one of the most common risks.

Suppliers

4. Review on the implementation status of
the previous year's improvement plan

4. At the management level, we conduct a review of the previous year's activities. In FY2023, in light of the gradual transition of society to thepost-COVID-19 era, we shifted our focus from issues related to preventing the spread of infectious disease.

7. Reflect on the previous year's review inthe current year's improvement plan

7. Based on the results of the management review, improvements are reflected in the improvement plan for the current fiscal year as necessary.
In FY2023, we also reflected the suggestions made at the management review.

8. Confirmation of important issues andimprovement plan for the current fiscal year

8. Based on the above points two to seven, we have established priority issues and improvement plans for the current fiscal year.

9. Implement important issues andimprovement plan for the current fiscal year

9. In accordance with the established priority issues and improvement plans, we will proceed with initiatives in this fiscal year (details on thenext page).

10. Report internally and externally

10. We report the results of our efforts in the previous fiscal year, priority issues for the current fiscal year, and improvement plans internallyand externally through integrated reports and websites.

Challenges

Scheduled to be implemented in FY2023

Confirmation of respect for human rights in the supply chain

Continued

Procurement of products with consideration for human rights

Continued

Improvement of accessibility

Continued

Initiatives towards safety and comfort (Prevent the spread of infectious diseases)

Repositioning

Prevention of human trafficking

Continued

Prevention of human rights violations by external dissemination

New implementation

Prevention of harassment

Continued

Prevention of long working hours

Continued

Fair and impartial hiring and promotion

Continued

Prevention of discrimination against race and culture

Continued

Prevention of personal information leakage

Continued

Customers

Employees

Please refer to the special issue "Eleven priority issues, indicators and targets related to respect for human rights" on pp.107-108 for specific initiatives.

Data Section

6. Management review

6. We report the contents of the previous year's review, the priority issues proposed for the current year, and the improvement plan to the
President. In FY2023, we reported that we will reposition issues related to the prevention of the spread of infectious disease from priority
issues, and that we will add new measures to prevent human rights violations caused by external dissemination.

List of Initiatives to Respect Human Rights

Sustainability

5. We hold dialogues with outside experts and formulate proposals for priority issues and improvement plans for the current fiscal year basedon the contents of the "3. Human rights risk evaluation/extraction of issues" and "4. Review of the implementation status of the previous
year’s improvement plan".
In FY2023, we invited SHIMOTAYA Takeshi of The Global Alliance for Sustainable Supply Chain, a general incorporated association, tohold dialogues with our officers in our Sustainability Promotion Committee. Although our priority issues were not renewed, we received
valuable advice in affirming respect for human rights in our supply chain, and we have reflected this in our concrete efforts.

3. Co-create enjoyment and delight through travel withcustomers and society.

JAL Group's Efforts to Respect Human Rights

1. Confirmation of Human Rights policy

5. Dialogue with experts/
Establishment of important issues
and improvement plan for thecurrent fiscal year

2. Offer a variety of travel options to all ourcustomers; andGrowth Strategy

HRDD

Based on the JAL Philosophy, which defines the basic attitude of employees, we will:

The JAL Group Value Creation Story■ All officers and employees of the JAL Group fulfill their responsibility to respect the human rights of all people.
■ In accordance with the JAL Group Human Rights Policy, we respect all stakeholders including our customers andevery 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 andprevent 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 educatedon gender equality, LGBTQ issues and the prevention of human trafficking. We also take steps with regard to our
supply chains (refer to Responsible Procurement).

WEB

JAL Group Accessibility Service Policy

1. Provide stress-free travel for all
customers:

Basic Concept

Introduction

Respect for Human Rights

Flow for Human Rights DD initiatives (Promote efforts to respect human rights in line with this flow every fiscal year)

105

JAL REPORT 2023

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JAL REPORT 2023

106

Chapter 4 Sustainability

Special Feature

Sustainability Initiatives

Environment

Respect for Human Rights

Framework for respecting human rights

Special Feature1

Confirmation of Respect for Human Rights in the Supply Chain

Introduction

Special Feature Eleven Priority Issues, Indicators and Targets
Related to Respect for Human Rights

7

Confirmation rate of primary supplier soundness

Relevant indicators 100 percent, Completion of human rights
investigations of new key suppliers 100 percent

2

Procurement of Products with
Consideration for Human Rights

Relevant indicators

Percentage of inflight items using international
certified paper that takes forest resources
into consideration 100 percent

As for the service supplies and meals provided to our customers at the cabin and lounge, we adopt
certified products that take into consideration the worker’s rights involved in forestry, agriculture, andfishing. We strive not to be complicit in human rights violations such as poor working conditions, childlabor, and land rights violations of indigenous peoples. In FY2022, 87.8 percent of paper products were
replaced with certified products, and ten kinds of certified fishery and agricultural products were used.
In FY2023, we aim to increase the usage rate of certified paper products to 95 percent.
Inflight meals using ingredients certified by ASC and
GAP (For details, see the special issue "Sustainabilityof Restaurants in the Sky" on pp.103-104.)3

Improving Accessibility

Percentage of customers who find it difficult

Relevant indicators to travel compared to FY2019 results 2.5
times

4

Prevention of Infectious End
Disease Expansion

Relevant indicators

Bottom three answers to questions
that is concerned about DVS infectious
disease measures

Relevant indicators

Prevention of Human Rights Violations
by External Dissemination

Relevant indicators

107

JAL REPORT 2023

*Indicators for evaluation of LGBTQ+ and other sexual minority initiatives by companies and organizations

10

Prevention of Discrimination
Against Race and Culture

11

Attendance rate of education related torespect for human rights 100 percent

Amid the increasing complexity of the environment surrounding the JAL Group, we will establish a checking system to ensure that there are no humanrights violations committed unintentionally through external dissemination. This issue was newly added in FY2023. In FY2023, we will strengthen the
checking system so that the main department can make effective confirmations. To raise awareness among employees, we will also incorporate thiscontent into training programs related to the respect for human rights and work to prevent violations of human rights caused by external dissemination.

Percentage of men taking childcare leave 100 percent

The JAL Group strives to be a company where everyone can play an active role regardless of gender,
age, nationality, race, ethnicity, religion, social status, disability status, sexual orientation, gender identity,
or company of origin. In FY2022, for the seventh consecutive year, the company was awarded thehighest "Gold" award in the "PRIDE Index*" developed by the voluntary organization "work with Pride".
In addition, employees with disabilities attended an autonomous career development training, an internalintern system. To further encourage the success of diverse human resources, we took advantage ofwork with Pride "Pride Indicator 2022"
diverse perspectives to operate booths at LGBTQ-related events (local pride events) held across Japan.
To promote the understanding of disabilities, we collaborated with other companies in the planning and management of events. In FY2023, we will
promote the expansion of opportunities for people with disabilities to play an active role and to achieve the target number of employment for people
with disabilities set forth in the JAL Group Medium Term Management Plan Rolling Plan 2023.

Exchange of views on human trafficking with airport
companies

NEW

Proportion of women in management 30 percent

rate for persons with disabilities 3.2
Relevant indicators Employment
percent

Relevant indicators

Number of facilities developedin consideration of DEI

Information security education materials for all
employees

Prevention of Personal
Information Leakage

Internal events to promote understandingof unconscious bias

Relevant indicators

Number of incidents 0 cases

The JAL Group provides information security education and targeted email attack training
for all employees to raise their awareness of information security. In FY2022, we continued
similar efforts to raise employees' awareness of information security. We also strengthened
information security through stocktaking of unnecessary IDs and other measures to prevent
personal information leakage by customers and employees. In FY2023, we will continue toraise employees' awareness of information security and prevent personal information leakage ofcustomers and employees.

TOP

JAL REPORT 2023

Data Section

6

Fair and Impartial Hiring andPromotion

Workcation promotion activities with outside
parties

As the number of foreign employees has increased in the global environment, we are working to develop
human resources that can respect diverse cultures and create new values. In FY2022, we conducteda survey to group companies that employ a large number of non-Japanese employees dialogues with
employees who work abroad, to identify human rights issues arising from the increase in the number of
non-Japanese employees. Based on what we have identified, we will work to make further improvements.
In FY2023, we will establish rules to support non-Japanese employees, which is expected to increasein the future, and will endeavor to prevent cases of human rights violations. We will also conduct internal
events to promote understanding of unconscious bias and work to prevent discrimination.

Attendance rate of education related torespect for human rights 100 percent

The JAL Group regards unintentional complicity in human trafficking by air transport as aparticularly important human rights issue. In FY2022, continuing from the previous year, allemployees were provided with education on the respect for human rights, including informationon the prevention of human trafficking. In addition, as part of our efforts with external
stakeholders, we invited officers from the National Police Agency to tell us about the current
situation in human trafficking in Japan. We held panel discussions with staff from airports andcabins in the company. In FY2023, we will continue to educate all employees on the preventionof human trafficking, expand the scope of our external stakeholders, and take on prevention
measures.

Average number of hours per month for overtime and holiday work
４ hours/person (Linked to 1,850 hours of total working hours)

With the aim of curbing overtime and holiday work, we are developing a system to support flexible
workstyles, such as a system to change working hours, a superflex system, and a system that allows
employees to take paid leaves on an hourly basis. In addition, we are making efforts to create anenvironment in which employees can easily take time off, including workcation that allows employees
to work remotely during vacation periods, and bleisures that allows employees to take time off duringbusiness trips. In FY2022, we conducted a seminar on working hours management for managers
and reviewed internal rules for telework. We promoted a hybrid work system that combines officeattendance and telework, enabling employees to choose where to work while being conscious ofproductivity and communication. In FY2023, we will continue to hold seminars on working hour
management for managers. We will also reduce the number of working hours by improving theefficiency of our business processes and changing our decision-making processes.

Sustainability

Touchless computers at the airport

Prevention of Human
Trafficking

Total working hours 1,850 hours/person
Ratio of employees who work long hours 0 percent

Relevant indicators Annual paid leave usage ratio 100 percent

9

Special Assistance Counter

We are working to ensure that all customers can enjoy a safe and secure air travel. In FY2022, we
promoted initiatives based on three pillars (improve hygiene and cleanliness, use digital technology
to make touchless automatic and self-service, and support travel), including employee education on
hygiene and infectious disease and the implementation of "hospitality service utilizing facial recognition
trial" at Amami Airport. We will continue to provide airport and inflight services that allow customers totravel with a peace of mind. In the light of the gradual shift to the post-coronavirus era, we will change
the position of these issues from priority issues in FY2023.

58

Prevention of Long
Working Hours

We have established the Regulations on the Prevention of Harassment in the Workplace, explaining
in detail the various definitions of harassment, the prohibition and clearly stating that violations will be
subject to disciplinary action. In addition to the Harassment Consultation Service, we have establisheda 24-hour compliance consultation service (Group Hotline) and a sexual harassment consultation
service dedicated to cabin attendants. In FY2022, in addition to employee education, we also provided
training on the emotional care of employees for managers, who have been subjected to customer
harassment. In FY2023, we will conduct additional compliance education for all JAL Group employees
and conduct workplace visits to ensure compliance. We will also deepen our efforts against customer
harassment.

Growth Strategy

In accordance with the JAL Group Accessibility Service Policy, we are working to create fun andentertaining travel by providing stress-free travel options to all customers. We promoted initiatives
based on four pillars (employee education, environmental improvement, information dissemination,
and accessible tourism), including training and lectures to enhance empathy through interaction withpara-athletes, pre-flight workshop to relieve various concerns about flying, and tours for customers
with developmental disabilities. In FY2023, we will continue to strive to improve accessibility based on
the four pillars.

Training for managers, including harassment
prevention

Number of violations of theCode of Conduct 0 cases

Relevant indicators

The JAL Group Value Creation Story

We strive to establish a sustainable supply chain that includes respect for human rights, compliance with laws and regulations, global environmental
protection, and proper labor practices. In FY2022, we distributed and collected self-assessment questionnaires to all 461 main suppliers, to identify
risks, explain the results to suppliers who were able to identify risks, requested corrective measures, and completed soundness checks. We have also
started the operation of a hotline for domestic and overseas suppliers. In FY2023, based on the advice we received in dialogue with experts, we will
identify suppliers that are closely tied to our company and highly important from an ESG perspective, and will conduct on-site audits.

Prevention of Harassment

108Chapter 4 Sustainability

Efforts by Corporate Citizenship Activities
As a good corporate citizen, the JAL Group aims to build better relationships with its stakeholders
and contribute to the development of society. As part of our corporate citizenship activities, wewill 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 withvarious stakeholders. We support volunteer activities by our employees.

1

Topic

JAL SORAIKU®

®

JAL SORAIKU aims to provide students with the opportunity tothink about their future and the future of the global environmentby exploring the wonders of the sky and the joy of flying. We haveheld online classes, SORA-ECO Classes, origami plane classes,
and virtual JAL Factory tours as activities that can be done during
COVID-19. In addition, we have also resumed face-to-faceactivities. We encourage people to think about the future throughonline programs and face-to-face interactions.

2

Education Content Delivery

We offer JAL STEAM SCHOOL, a class in which pilots explain theworld of aircraft and aviation from the perspectives of STEAM*1. In
addition, JAL STEAM SCHOOL Portable, an interactive programthat summarizes the contents of the class in an easy-to-understandmanner, 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.

Major External Evaluations (2022 to 2023)
Major ratings and awards are also posted on the JAL website.
WEB

https://www.jal.com/en/outline/awards.html

WEB

https://press.jal.co.jp/en/awards/

Comprehensive evaluation of service
quality, safety well-being initiatives, andsustainability initiatives

The JAL Group Value Creation Story

Topic

Introduction

Build better relationships with stakeholders

Evaluation of airport and in-flight products
and services

SKYTRAX「World Airline Star
Rating」
From 2018

APEX「WORLD CLASS」
First Japanese airline

SKYTRAX「World's Best Economy Class」(Third time)
SKYTRAX「Best Economy Class Airline Seat」
Six consecutive terms (seventh)

Evaluation of sustainability

Growth Strategy

An online class on the job ofcabin attendants

Number of JAL SORAIKU® participants (past 4 years)
Fiscal Year

FY2019FY2020

FY2021

FY2022

Number ofpeople191,840

20,43550,14752,586Topic

3Culture and Sports Support

Elementary school
students experiencing
Wheelchair Basketball(Credit: the Nippon
Foundation Para
Suppor t s Suppor tCenter)Results (last three years)
FY2020

FY2021

FY2022

Participating school

129 schools

277 schools

797 schools

Number of people(12,559)(23,960)(73,246)

Topic

4

Ensuring Air Transport andSupporting Affected Areas

In response to the earthquake off the coast of Fukushima Prefecturein 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 transportation for people in the Tohoku
region. In addition, we conducted the following activities to provide
assistance for natural disasters that occurred in Japan andoverseas.

FY2022 Support Results
Employee donations (to UNICEF)
Earthquakes in Turkey and Syria
399,894 yen

JAL Charity miles
2,875,500 yen

Employee fundraising
Torrential rains in August 2022 in Japan305,622 yen

JAL Charity miles
1,736,000 yen

Evaluation of workstyle innovation

The Ministry of Internal Affairs andCommunications' 100 Best Telework Pioneers

Evaluation of DX initiatives

Evaluation of health and productivity management

Selected by METI and the Tokyo Stock
Exchange as health and productivity
management for the fifth time in two
consecutive years

Evaluation of disclosure

Twenty-four JAL Group companies were certified
as "Certified Health & Productivity Management
Outstanding Organizations Recognition Program"by METI and the Japan Health Council

Evaluation of Wellness Promotion

For information on Charity Miles, visit the JAL website.
WEB

https://www.jal.co.jp/jp/en/jalmile/use/charity/*1 A universal teaching method that combines the comprehensive study of science,technology, engineering, art, and mathematics. It is an educational philosophy that
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 Hands-on para-sports classes for elementary, junior high and high schools hosted by the Nippon Foundation Para Sports Support Center*4 Education and training programs conducted by para-athlete instructors are not limited to students but also targeted towards corporations, local governments, and all
generations throughout Japan.

JAL REPORT 2023

JobRainbow「D&I Award 2022」
Best Rating "Best Workplace"work with Pride "Pride Indicator 2022"
Top "Gold" for seven consecutive years since 2016

Japan Securities Analysts
Association "Award for
Excellence in Corporate
Disclosure"No. 1 in transportation for the
fourth time in five years

Selected as an Environmental
Sustainable Company at the 4th
ESG Finance Awards Japan

Data Section

Fiscal Year

Evaluation of DEI initiatives

Experiencing JAL STEAM SCHOOL Portable

Sustainability

In support of a D&I society that recognizes individual differences
and promotes active participation, we have expanded our supportand sponsorship from the “the School of Challenge for Tomorrow”
program*3 to encompass all five programs under "the School of
Challenge for Tomorrow" initiative*4 and are working to further
promote a barrier-free mindset through parasports so that everyone
can feel the importance of challenging themselves to something new.

109

Climate Change "A-"
Assessment

Dow Jones Sustainability Asia Pacific Index
Selected for the first time

Accreditation of Sports Ale Company Bronze by theSports Agency for the sixth year, and the second
accreditation of Sports Ale Company 2023 Bronze
for two consecutive years.

*Our company's inclusion in the MSCI Index and use of the MSCI logo, trademark, service mark or index name is not intended to sponsor, promote or promote ourcompany by MSCI or its affiliates. MSCI's services and data are the exclusive property of MSCI, and the names and logos of MSCI and the MSCI Index are trademarks
or service marks of MSCI or its affiliates.

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JAL REPORT 2023

110

Chapter 5 Data Section

Chapter 5 Data Section
Introduction

1. Data Highlights
ESG
CO2 emission reductions

Percentage of fuel-efficient aircrafts

Employees

CO2 emissions from aircrafts (1000 tons)

Non-fuel-efficient aircrafts (%)
Fuel-efficient aircrafts (%)

Number of employees (people)

9,332

100

9,085

34,00335,65336,06035,423 evenue Passenger Kilometers/Available
R
Seat Kilometers (domestic flights)R evenue 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)

Domestic (%)
International (%)

Passenger Load Factor(= Revenue Passenger Kilometers (RPK)/Available Seat Kilometers (ASK)) (%)

Passenger Load Factor(= Revenue Passenger Kilometers (RPK)/Available Seat Kilometers (ASK)) (%)

81.3

36,039

72.5

96.38

77.1

70.3

71.8

36,1164,393

50

54,92549.3

47.7

44,65936,19926,19541,90535,24325,44324,535

11,918
6,027

2,196
2019

2020

2021

2022

(FY)

0

2018

2019

2020

2021

2022

(FY)

2018

2019

2020

2021

2022

(FY)

2018

2019

2020

2021

Japanese GAAP

27,31022,78012,089

87.46
83.29

38,03926.5

18.4

23,09019,452
9,282

84.12

54,32492.81
87.99
96.27 95.33
88.88 79.74
92.99 91.78
86.83

84.18

The JAL Group Value Creation Story

86

85

84

82

79

6,194

2018

84.99

65.5

8,193

Total (%)

2022

(FY)

2018

2019

2020

2021

(FY)

2022

2018

2019

2020

2021

2022

(FY)

IFRS

Japanese GAAPIFRSFinance*5R atio of female managers/Ratio of nonJapanese managers*1

Employment rate of people with disabilities*2

Ratio of female managers (%)
Ratio of non-Japanese managers (%)

Employment rate of people with disabilities (%)

Highly engaged employee percentage

Net Promoter Score (NPS)*3*4Highly engaged employee percentage (%)

Operating Profit (billion yen)
Profit or Loss (billion yen)
Operating Profit Margin (%)

19.5%
16.8%

18.4%

19.5%

2.62%

2.67%

2.64%

56.8%

54.4%

54.4%

Statutory employment ratesince March 1, 2021 (2.3%)

51.7%

2020

2021

2022

(FY)

2018

2019

2020

2021

2022

(FY)

2018

2019

2020

2021

2022

88.8

150.8
8.2

(FY)

2018

53.4

7.4
7.1

2019

2020

2021

222.0

34.4

48.0
177.5

▲3.3
2022

16.1%

64.5

3.0

7.6

18.1%

251.2

238.6

1.3
2019

16.9%
300.2

100.6

51.7%

2.2

2018

4.7%

23.0

20.5%
18.1%

6.4%

176.1

2.75%

EBITDA (billion yen)
EBITDA Margin (%)

20.2%

22.8%

2.69%

EBIT Margin (%)

11.8%
7.1%

19.9%

EBIT (billion yen)

286.6

398.3
2018

2019

2019

61.0

215.8

239.4
(FY)

Growth Strategy

30.0

21.9%

EBITDA*9/EBITDA Margin*8 *10

EBIT*6/Profit or Loss*7/EBIT Margin*8

Domestic (points)
International (points)

2020

2021

2022 (FY)IFRSJapanese GAAP

2018

2019

2019

2020

2021

2022

(FY)

IFRS

Japanese GAAP

Business

Mileage, Lifestyle and InfrastructureInternational passengers

LCC passenger
Other
Domestic passengers

Aircraft accident/Serious incident

Number of aircraft

Aircraft accident
Serious incident

Large
Regional jets

Shareholder's Equity Ratio

MediumShareholder's Equity (billion yen)
Shareholder's Equity Ratio (%)
Shareholder's Equity Ratio based on credit rating evaluation*11 (%)

259.5

236.2

0.0
18.7

53

51

50

61

65

57.4%

51

2

65

62

1,165.162

1,094.8

529.7
451.1

143.2
486.2

128.8

0.05

2020

1

1

1

83

80

80

79

40

44

45

44

32

2018

2019

2020

2021

2022

77

417.5

235.1

0
27.9

2021

68.7

2022

(FY)

2018

2019

2020

0

2021

2022

(FY)

1,014.2

947.4

39.3%

33.7%
799.7

32.4%
816.2

32.3%

80.9%

72.8%

49.2%
31.7%
20.0
38.3

53.4

48.0
20.0
18.8

20.0
18.8

0%

34.4

*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 The survey is conducted every two years, and the percentage of employees who chose four or five out of five ratings*4 Compared to results in early FY2017*5 IFRS is adopted from FY2020. Accordingly, figures for FY2019 are also calculated under IFRS for comparison.
*6 EBIT = Profit or Loss before Financing and Income tax (Profit/Loss before Tax – Finance Income/Expenses)*7 [Japanese GAAP] Net profit or Loss attributable to owners of parent [IFRS] Profit or Loss attributable to owners of parent

JAL REPORT 2023

286.6
0%
(FY)

2018

2019

Japanese GAAP

2019

2020

2021
IFRS

2022 (FY)

2018

2019

Japanese GAAP

2019

2020

10.9

0%

177.5

0%
2021

IFRS*42022 (FY)

2018

2019

2019

2020

2021

2022 (FY)IFRSJapanese GAAP

*8 EBIT Margin and EBITDA Margin for FY2020 and FY2021 are not shown as they are negative figures.
*9 [Japanese GAAP] EBITDA = Operating profit + Depreciation [IFRS] EBITDA = EBIT + Depreciation*10 Japanese GAAP] EBITDA Margin = EBITDA/Operating Revenue [IFRS] EBITDA Margin = EBITDA/Revenue*11 Shareholder's Equity Ratio based on credit rating evaluation considering Hybrid Finance*12 Payout Ratio = Total Dividends/Profit or Loss*7*14*13 Total Return Ratio = (Total Dividends + Share Repurchases)/Profit or Loss*7*14*14 Profit attributable to owners of parent for FY2018 excludes the effects of income taxes deferredTOP

JAL REPORT 2023

112

Data Section

IFRS

111

31.7%
41.0%

150.8

7.1

174.0

2019

218.3

1

2.7
6.0

35.3%

51.2%
45.0%

2

224.7

151.6

39.3%

58.9%

30.6
15.2

91.6

52

Profit or Loss (billion yen)
Total dividends (billion yen)
Repurchase amount (billion yen)
Total return ratio (%)

Dividend payout ratio (%)

33

Total return ratio*13

Small

Total cargo and mail(billion yen)

Dividend payout ratio*12

Sustainability

Transition and composition of revenue in eachbusiness area*1

Chapter 5 Data Section

1. Data Highlights

ESG Data
2.2.ESGData

3. Business Data

4. Financial Data

5. Other Data

Environment（E）

Environment（E）
Unit

1,000 tons
1,000 tons％
1,000 tons
1,000 tons
kg-CO2/RTK％

CO2 reduction from JAL Green Operations

1,000 tons

GHG Scope 2*1
GHG Scope 3

1,000 tons

Total emissions

1,000 tons

9,345
9,332
99.9
13
―
1.0323―146（1.6% of emissions）
50

FY2020

FY2021

FY2022

Unit

9,121
9,085
99.6
15
21
1.06481x10-4157（1.7% of emissions）
57

4,421
4,393
99.3
14
15
1.37630.009x10-4
82（1.8% of emissions）
51

6,214
6,194
99.5
14
17
1.27512x10-4142（2.3% of emissions）
53

8,222
8,193
99.6
10
19
1.082947x10-4
195（2.4% of emissions）
56

1,402.72
478.5 （2,176.9）
*
215
―
721
―

1,046.2

1,534.6

1,765.3

166
264

198
481

287
350

1,000 tons

468

455(1,227)*2

603

842

1,111

1,000 tons
1,000 tons
1,000 tons
1,000 tons
1,000 tons
1,000 tons

―
4.4
6.1
―
9,395.0
9,873.5

1.0
4.6
6.1(8.3)*2―
9,178.0
10,580.7

0.8
4.7
7.7
―
4,472.0
5,518.2

1.3
4.6
7.7
―
6,267.0
7,801.6

1.2
4.7
8.1
2.7
8,278.0
10,043.3

Number of people
Number of people

―
―

―
―

―
―

―
―

13,122385

1,000 kl
1,000 kl

3,784
3,583

3,684
3,488

1,781
1,687

2,507
2,357

3,331
3,154

1,000 GJ
1,000 GJ
1,000 GJ
1,000 MWh
1,000 GJ
1,000 kl

0.3
2.5
267
102
340
42

0.3
2.0
257
98
332
40

1.2
2.7
245
89
317
35

1.2
2.2
241
92
337
39

1.0
2.2
193
95
296
37

1,000 MWh
1,000 MWh
1,000 MWh
1,000 MWh

38,651
96
38,849―37,63092
37,820―18,22988
18,406―25,633
94
25,819―34,084
61
34,2401.7

aircrafts
aircrafts
aircrafts
aircrafts
aircrafts
aircrafts
aircrafts
aircrafts
aircrafts
%

―
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

16
52
16
62
18
14
12
2
192
86

billion yen

175.4

181.3

55.3

132.0

86.1

vehicles
kl
kl
kl

―
―
―
―

3,609
691
7,430
―

3,604
495
5,125
―

3,537
539
5,964
―

3,649
636
6,772
10

1,000 m
1,000 m3
1,000 m3

485
0
485

447
0
447

335
0
335

316
0
316

381
0
381

％

8.3

15.9

66.5

66.5

87.8

Number of times

0

0

0

0

0

cases

―

―

―

―

0

FY2018FY2019FY2020

FY2021

FY2022

%
%

―
―

2.5
―

10.4
87.6

25
90

45
91

tons
tons
tons

151.4
0.0
151.4

153.5
11.8
141.7

22.5
6.3
16.2

24.3
11.7
12.6

62.1
46.5
15.5

%
tons
%
%

―
―
―
―

―
―
―
―

43.6
369.0
99.5
―

30.8
77.9
99.7
25

100.0
249.8
100.0
62.5

1,000 tons

5.10

5.54

2.43

3.06

4.66

1,000 tons

0.63

0.66

0.13

0.15

0.25

1,000 tons
tons
kg

3.95
26.3
7.40

4.35
27.7
3.94

1.71
23.7
1.96

2.40
24.3
14.27

3.47
32.3
13.02

tons
tons
tons
tons
%

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

3,148
3,130
18
0
0.6

%
%

―
―

100
45

100
40

100
41

100
42

cases
yen

0
0

0
0

0
0

0
0

0
0

*1 In-flight catering facilities have been added to Head Office, Airport, Maintenance Center and Branch Offices from FY2019.
*2 The basic units in FY2019 apply to figures after FY2020.
*3 Head Office, Airport, Maintenance Center, and Branch Offices*4 ICAO standard of counting take-off and landing as “one cycle”

Acquisition of Independent Assurance Statement
Greenhouse Gas Verification Statement: https://www.jal.com/en/sustainability/environment/environment-management/pdf/ias_jal2023_en_230809.pdf
NOx/Water Assurance Statement: https://www.jal.com/en/sustainability/environment/environment-management/pdf/nox_jal2023_en_230809.pdf

Social (S)Human Resources*1
Unit

Human Resources Portfolio
Create a dynamic human resources portfolio
Assign human resources to growing business areas*2
Employees
Number of consolidated employees
Total
By Job Type
Number of ground staff
Number of cockpit crew
Number of cabin crew
Ratio of managers
Ratio of general staff
Qualifications
Cockpit crew (PIC + FO)
Maintenance engineer (Persons with national qualifications)
Employment, turnover
Number of new employees
Number of new employees (men)*3
Number of new employees (women)*3
Number of mid-career employees hired (business planning staff hired in Japan)*3

FY2018FY2019FY2020

FY2021

FY2022

people―――＋2,000＋2,200people34,00335,65336,06035,42336,039peoplepeoplepeople%%24,295
2,690
7,018
15.5
84.5

25,278
2,766
7,609
14.8
85.1

25,244
2,876
7,940
15.0
85.0

25,191
3,082
7,150
15.9
84.1

25,638
3,196
7,205
15.9
84.1

peoplepeople

2,447
1,827

2,519
1,859

2,620
1,856

2,632
1,867

2,782
1,929

peoplepeoplepeoplepeople

2,422
131
615
14

3,711
186
855
50

2,352
156
567
6

718
115
18
0

1,776
118
36
53

Data Section3

Effective Use of Limited Resouces
Plastic
Reduction ratio of new petroleum derived single plastic use items in in-house standard products used in-flight and in lounges
Ratio of environmentally friendly material in single-use plastics used in airports and cargo transport
Food loss & waste
Total weight of food loss & waste at JAL Royal Catering Narita and Haneda factories
Total weight of compost from food loss & waste at JAL Royal Catering Narita and Haneda factories
Total waste
Wood/Paper/Fiber packaging
Coverage (% of cost of goods sold)Total weight
Percentage of total weight of recycled and/or certified raw materials
Percentage of electronic AWB (Air Waybill)
Precaution of Environmental Pollution
Nitrogen oxide (NOx) emissions
Emissions in LTO cycle*4
Hydrocabon (HC)
Emissions in LTO cycle*4
Carbon monoxide (CO)Emissions in LTO cycle*4
VOC emissions
CFC substitute (aircraft)Industrial waste
Total waste generated
Total waste recycled
Total waste disposed
PCB waste
Final disposal rate
Noise Reduction
Low-noise aircraft
Ratio of ICAO Chapter 4 standard compliant aircraft
Ratio of ICAO Chapter 14 standard compliant aircraft
OthersEnvironmental violations
Number of violation cases of legal obligations/regulations
Amount of fines/penalties related to above violations

Sustainability

JAL REPORT 2023

1,000 tons
1,000 tons

FY2019Growth Strategy

Category 1: Purchased goods and services
Category 2: Capital goods
Category 3: Fuel- and energy-related activities(not included in Scope 1 or Scope 2)
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Category 8: Upstream leased assets
GHG Scope 1+2
GHG Scope 1+2+3
Provision of carbon offset programs
JAL Carbon Offset website visitors
Number of JAL Carbon Offset users
Energy consumption (aircraft)
Jet fuel
Crude oil equivalent
Energy consumption (ground)*3
Kerosene
Heavy fuel oil A
Town gas, LPG
Electricity
Steam, heat, cooling
Crude oil equivalentElectricity equivalent
Energy consumption (fuel total)
Energy consumption (steam, heat, cooling)
Energy consumption (total)
Total renewable energy consumption
Number of fuel-efficient aircrafts
Airbus A350
Boeing 787
Boeing 777
Boeing 737-800
Embraer 170
Embraer 190
ATR42-600
ATR72-600
Number of fuel-efficient aircrafts (total)
Ratio of fuel-efficient aircrafts
Environmental investments
Investments
VehiclesMotor vehicle
Gasoline consumption
Diesel consumption
Biodiesel blended fuel consumption
Biodiversity Conservation
Water consumption
Withdrawal
Tap water consumption
Groundwater, sea, river, lake, industrial water consumption
Total consumption
Utilization of certified commercial materials
Percentage of in-flight items using internationally certified paper that takes forest resources into consideration
Prevention of illegal wildlife trade
Number of illegal wildlife transports
Consideration of biodiversity in foodstuffs and commercial products
Number of violations of internal guidelines for ESG risk foodstuffs and products

113

FY2018The JAL Group Value Creation Story

Addressing Climate Change
CO2 emissions
GHG Scope 1
Total emissions
CO2 emissions from aircraft
Proportion of CO2 emissions from aircraft of GHG Scope1
CO2 emissions from ground equipment*1
CO2 emissions from vehicle
CO2 emissions per Revenue Ton Kilometer (RTK)SAF use among entire air fleet fuel use

Introduction

2. ESG Data

*1 Japan Airlines Co., Ltd. and 56 consolidated subsidiaries*2 Compared to FY 2019
*3 Japan Airlines Co., Ltd. onlyTOP

JAL REPORT 2023

114

Chapter 5 Data Section

ESG Data
2.2.ESGData

3. Business Data

5. Other Data

Human Resources*1
Unit

FY2019FY2020

FY2021Unit

FY2022

3.9
―
―
1.9
622
8.1

2.4
―
―
1.1
735
15.9

3.7
2.2
1.5
1.6
837
20.6

4.4
1.8
2.6
2.6
926
16.4

year

39.1

39.4

38.6

39.4

39.6

year
year
year

39.5
44.0
35.4

40.2
43.8
35.0

39.1
44.0
35.0

40.0
43.8
35.8

40.1
43.6
36.4

%
%
%
%
people
%
%

49.8
16.8
ー
89.8
218
64.0
2.69

50.6
18.4
19.5
88.4
216
56.3
2.62

51.7
19.5
19.9
84.0
218
53.0
2.67

50.1
21.9
20.5
90.1
226
57.4
2.64

50.6
22.8
18.1
89.0
222
55.9
2.75

year

14.7

14.4

14.4

14.8

14.5

year
year
year
year
year
year
year
year
year
year
year
year

18.7
5.0
12.3
9.9
20.2
11.0
21.0
6.5
9.7
10.6
22.3
14.8

18.4
4.7
7.8
9.5
19.6
9.6
21.0
5.4
6.8
10.2
22.1
13.7

16.6
3.5
6.2
8.7
19.2
9.6
21.2
5.9
6.8
10.3
22.0
13.2

15.9
3.5
5.2
9.3
19.5
10.6
21.0
6.1
8.3
11.6
22.2
13.1

15.7
3.7
4.0
9.6
19.9
11.1
20.9
5.5
9.0
12.3
22.2
13.9

1,000 yen
1,000 yen
1,000 yen
1,000 yen
1,000 yen
1,000 yen
1,000 yen
1,000 yen
1,000 yen
1,000 yen

7,126
21,096
5,603
6,031
―
―
―
―
―
―

6,684
20,225
5,151
5,667
―
―
―
―
―
―

5,638
17,695
3,769
4,883
―
―
―
―
―
―

5,521
17,420
3,886
4,558
―
―
―
―
―
―

6,670
18,797
5,079
5,617
18,166
6,528
4,823
5,189
7,442
5,686

%
%
%

―
―
―

―
―
―

―
―
―

―
―
―

35.9
107.6
76.4

%
people

79.9
68

81.8
53

106.3
40

99.3
20

87.2
42

―
70.8
470,698―
72.3
449,480―277.1
109,321―162.3
84,46930
259.4
138,651%56.8（No investigation）

54.4

54.4（No investigation）

51.7

51.7（No investigation）

％
％

100
―

100
37.5

100
36.0

100
40.7

100
Disclosed during fiscal 23

％
％
％

28.3
―
―

36.7
―
―

43.4
―
―

―
58.9
30.2

―
62.5
32.3

％
％

24.1
―

30.7
―

38.6
―

―
54.1

―
58.3

FY2018FY2019FY2020

FY2021

FY2022

％
％
％

―
―
―

―
―
―

―
―
―

25.4
19.1
8.7

27.9
19.3
10.8

％
％

28.9
5.5

27.9
5.0

26.3
4.2

25.9
4.2

25.4
4.3

hours/people%
hours/peoplecasepeoplecase
1,000 yen/person

1,874
86.0
8.5
54
―
―
―

1,862
79.0
9.5
28
36,105247
38,872

1,878
71.5
8.0
13
336,287918
13,345

1,890
74.5
9.9
11
346,167
1,533
19,273

1,884
81.0
10.5
47
277,028
1,521
38,169FY2020

FY2021

FY2022Governance（G）
Unit

Respect for Human Rights
Preventing adverse HR impacts (Establishment of PDCA and appropriate operation)
Attendance rate of education related to respect for human rights
Ratio of employees who work long hours
Disclosure and Compliance
Disclosure and Dialogue
Number of institutional investors
Interviews with domestic investors
Interviews with overseas investors (total)
Total
Interviews by management
Individual shareholder
Number of IR mail subscribers
Compliance
Number of whistleblowing cases
Responsible Procurement
Health confirmation rate of major suppliers
Number of aviation security audits of all caterer factories and aircraft supply depots
Risk management
Information security and personal information protection
Number of data breaches
Secondary usage ratio of personal data
Number of substantiated complaints received from outside parties regarding
privacy protection
Number of privacy regulatory complaints
Strengthening BCM
Number of BCP-based exercises
Corporate governanceCompliance rate of Corporate Governance Code*3
Board meeting attendance rate of Outside Directors and Auditors*3
Number of Directors on the Board*3
Ratio of Outside Directors*3
Number of female Directors*3
Number of female officers (Directors, Executive Officers)*3
Ratio of female officers (Directors, Executive Officers)*3

FY2018FY2019

%
%
%

―
―
―

―
―
―

―
―
―

―
―
―

100
81.9
1.98

times
times
times
times

―
―
―
―

167
219
386
63

209
262
471
173

188
164
352
91

162
230
392
112

people

―

―

1,805

7,464

15,000

times

―

―

―

―

170

%
times

―
―

18.0
2

37.0
2

62.0
2

81.0
2

times
%

0
0.0

0
0.0

2
0.0

0
0.0

2
0.0

times

0

0

0

0

0

times

0

0

0

0

0

times

1

1

1

4

4

%
%
people%peoplepeople
%

―
―
10
30
1
4
―

100
98.3
10
30
1
5
―

100
100
10
30
1
5
13.2

100
100
9
33
1
5
13.9

100
99.6
9
33
1
6
16.7

OthersCommunity Relations
Donations through Charity Miles
The number of volunteers
Total hours of volunteerism
Miles donated to Children's Dream Support Project (Mile)
Number of SORAIKU® participants

Unit

FY2018FY2019FY2020yen
peoplehour
Milepeople61,032,500
8,140
68,288―
197,469

9,208,500
7,745
51,734―
191,840

11,328,500
9,772
33,600―20,435

FY2021

0
6,125
27,952―50,147

FY2022

4,611,500
5,198
21,361
3,843,000
52,586*1 Japan Airlines Co., Ltd. and 56 consolidated subsidiaries*2 Compared to FY2019*3 Japan Airlines Co., Ltd. only
*4 (Locally hired managers overseas + Non-Japanese managers hired in Japan in business planning and maintenance engineering positions/Total managers*5 Sum of Japan Airlines Co., Ltd. and JAL Sunlight Co., Ltd. a special subsidiary, as of June 1 of the following fiscal year
*6 Including trainees (69.4% wage difference between men and women excluding trainees)*7 Calculated based on the total number of employees using the childcare leave system before FY2021*8 Subject to external training*9 The percentage of employees who chose four or five out of a five-point scale in a biennial survey. FY2018, FY2020 and FY2022 show results for the previous year
*10 Calculation based on data from Japan Airlines Health Insurance Association*11 Until FY2020, the figures were compiled for families aged 35 or older. Data for families aged 40 or older from FY2021

Data Section

peoplehours/people
yen/people

Families aged 18 or older
Obesity ratio (BMI 25 or higher)
Percentage of people with high stressSmoking ratio
Male
FemaleImprovement of labor productivity
Total actual working hours*3
Paid leave usage ratio*3
Average monthly overtime hours worked per person*3
Industrial accidents*3
Number of teleworkers*3
Number of cases using the workcation/bleisure system*3
Per capita sales

Sustainability

3.4
―
―
2.0
506
―

Growth Strategy

JAL REPORT 2023

FY2018%%%%peopleten thousand yen

The JAL Group Value Creation Story

Total turnover rate*3
Total turnover rate (male)*3
Total turnover rate (female)*3
Voluntary turnover rate*3
Number of employees reemployed after retirement*3
Average cost of hiring*3
Average age
Total
By Job Type
Average age of ground staff
Average age of cockpit crew
Average age of cabin crew
DEI
Employees
Ratio of female employees
Ratio of female managers
Ratio of non-Japanese managers*3 *4
Ratio of locally hired staff in overseas offices*3
Number of managers hired overseas*3
Ratio of locally hired managers in overseas offices
Ratio of employees with disabilities*5
Average years worked
Total
Job Type/Gender
Cockpit crew (Consolidated) Male
FemaleCabin crew (Consolidated) Male
FemaleGround staff (Consolidated) Male
FemaleCockpit Crew (Non-consolidated*3) Male
FemaleCabin crew (Non-consolidated*3) Male
FemaleGround staff (Non-consolidated*3) Male
FemaleAnnual remuneration
Average annual remuneration
All employees
Cockpit crew (Consolidated)
Cabin crew (Consolidated)
Ground staff (Consolidated)
Cockpit Crew (Non-consolidated*3 *6) Male
FemaleCabin crew (Non-consolidated*3) Male
FemaleGround staff (Non-consolidated*3) Male
FemalePayment difference between male and female employees
Cockpit Crew (Non-consolidated*3 *6)
Cabin crew (Non-consolidated*3)
Ground staff (Non-consolidated*3)
Balancing Life Events and Work
Percentage of men taking childcare leave*3 *7
Nursing care leave applicants*3
Careers & Reskilling
Provide a workplace that enables employees to grow and learn
Transfers inside the company through open recruitment
Training hours per person
Training cost per person*8
Engagement
Increase of engagement
Ratio of highly engaged employees*9
Health management*10
Health checkup ratio
All employees
11
Families*
Breast cancer screening ratio
Employees and families aged 18 or older
Employees
Families aged 35 or older
Uterine cancer screening ratio
Employees and families aged 18 or older
Employees

115

4. Financial Data

Introduction

Social (S)1. Data Highlights

Acquisition of Independent Assurance Statement
Social data:https://www.jal.com/ja/sustainability/human/human_rights/pdf/social_assurance.pdf

TOP

JAL REPORT 2023

116

Chapter 5 Data Section

1. Data Highlights

Business Data
3.3.Business
Data

2. ESG Data

4. Financial Data

5. Other Data

Introduction

3. Business Data
Aviation Business Area (FSC, LCC, Freight Post)
Unit

JAL REPORT 2023

FY2021Unit

FY2022

case
case
case

1
2
48

1
3
33

0
1
39

2
1
47

3
0
48

case
case

19
4

9
4

6
1

6
1

10
3

aircraftaircraftaircraftaircraftaircraftaircraftaircraftaircraftaircraftaircraftaircraftaircraftaircraftaircraftaircraftaircraft

0
13
4
11
12
17
25
29
6
62
3
32
7
5
1
8

5
13
4
11
11
20
29
29
5
62
0
32
10
5
0
5

8
13
4
11
9
20
29
29
2
61
0
32
11
5
0
3

15
13
4
8
4
22
29
29
0
65
0
32
13
5
0
0

16
13
0
3
0
22
30
27
0
62
0
32
14
5
0
0

destination
destination

60
348

62
378

61
368

61
380

64
376

flightflightflight244,467
54,747299,214242,60351,129293,732

134,325
8,138
142,463

244,022
17,127
261,149

263,585
28,688292,273

%
%

98.12
99.54

98.12
99.36

97.12
99.04

98.06
99.24

98.46
99.82

%
%
%

88.33
87.47
88.10

86.71
86.35
86.62

96.74
93.17
96.02

94.15
88.98
93.38

91.33
74.05
89.63

%
%
%

84.12
87.46
84.99

83.29
86.83
84.18

96.27
95.33
96.38

92.99
91.78
92.81

88.88
79.74
87.99

Company
Company

3
30

3
36

3
35

3
35

4
34

34,859,576
ー
730,669
ー
26,195,658
36,116,930
72.5

33,783,710
ー
701,240
ー
25,443,520
36,199,539
70.3

12,212,131▲74.2
49,188ー
9,282,122
19,452,985
47.7

Increase in domestic freight traffic*4
Results of pharmaceutical transportation*4
Customer Satisfaction
Net Promoter Score (NPS)*8
Domestic flights
International flights
Voice of customers
Accessibility
Number of customers who find it difficult to travel
Ratio of these passengers on board
Number of wooden wheelchairs, which go through metal detectors

FY2018FY2019FY2020

FY2021

FY2022

%
tons

ー
443

—
610

▲30
＋18％

▲34
＋92％

▲17
＋123％

point
point
case

+1.3
+2.2
37,524+7.6+8.2
37,621+23.0+30.0
19,712+7.1+7.4
21,095+3.0▲3.3
30,795％
vehicle

0.35
323

0.36
478

0.29
478

0.64
508

0.71
508

Figures in the table are based on Japanese GAAP for fiscal years 2018 and 2019, and International Financial Reporting Standards (IFRS) for fiscal years 2020 and later.

 situation in which partial malfunction of multiple aircraft systems occurs, for example, and the pilots respond according to the manual and return to the airport to ensure safety, resulting in a
*1 Aschedule change including the destination (excluding bird strike, lightning strike, etc.). In general, it is not a situation that immediately affects the safety of operations.

 rticle 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*2 A
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 this category. Generally
speaking, they do not immediately lead to an aircraft accident.
 artnership with Jetstar Japan on international connection routes only
*3 P ompared to FY2019*4 C
 evenue Passenger Kilometers: The total distance flown by revenue paying passengers. Number of revenue passengers x distance flown (kilometers)*5 R vailable Seat Kilometers: Measures passenger carrying capacity. Total seats x Distance flown (kilometers).
*6 A alculation of figures for Revenue Passengers Carried, Revenue Passenger Kilometers, Available Seat Kilometers, and Load Factor for international flights include codesharing of JAL*7 C
operated flights sold by other airlines.
 ompared to results in early FY2017*8 C
For more safety data, please visit the JAL website for our Safety Report.
WEB

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

Non-Aviation Area (Mileage, Lifestyle and Infrastructure)people%peoplepeople1,000 passenger-km
seat-km
%16,238,833
30,109,920▲59 ▲15 *Including LCCs
121,844582,180
540,000ー
12,089,054
23,090,624
24,535,597
35,243,210
49.3
65.5

Unit

Mileage and Card
Total number of JMB members
Issuance mile index*1
JAL CARD, INC.*2
Operating revenue
Sales revenue
TravelNumber of people who handle JALPAC Travel Co., Ltd.
Overseas travel
Domestic travel
Inbound travel to Japan
foreign visitors to Japan
JALPAK Co., Ltd.*2
Operating revenue
Sales revenue
RetailJALUX Co., Ltd.*2
Revenue
Contracted Services
Number of flights entrusted to foreign airlines
Passenger service
Cargo flights
Total
Collaboration with External Parties
Promotion of JAL Wellness & Travel*3

Number of city partnerships
Number of school partnerships*4
Number of Lab Alliances

FY2018FY2019FY2020

FY2021

FY2022

1 million
FY18=100

approx. 34.0
100

approx. 35.0
104.3

approx. 35.5
81.7

approx. 36.0
87.6

approx. 37.0
101.4

billion yen
billion yen

19.4
—

20.1
19.6

—
18.6

—
18.5

—
17.1

peoplepeoplepeoplepeople2,942,203
222,830
2,718,875
498

2,789,979
183,2022,606,388
389

1,141,342
45
1,141,293
4

1,004,500
68
1,004,450
32

2,149,697
17,4472,131,981
269

billion yen
billion yen

182.0
—

169.6
170.1

—
55.5

—
45.8

—
108.8

billion yen

—

—

—

—

27.9

10,000 flight
10,000 flight
10,000 flight

8.3
0.5
8.8

8.2
0.5
8.7

0.3
0.6
0.9

1.1
0.6
1.7

2.3
0.6
2.9

—

—

—

—

4

18
20
7

20
25
11

25
30
12

41
32
12

47
33
11

—

—

—

—

52

number of affiliatedmunicipalities
city
schoolCompany
Number of Research Group
Member Organizations

people1,000
passenger-km
1,000 seat-km%

9,128,236

8,277,987

357,519

892,471

4,348,562

44,659,463

41,905,628

2,196,423

6,027,871

27,310,618

Figures in the table are based on Japanese GAAP FY2018 and FY2019, and International Financial Reporting Standards (IFRS) for fiscal years 2020 and later.

54,925,904
81.3

54,324,546
77.1

11,918,047
18.4

22,780,657
26.5

38,039,283
71.8

 umber of miles issued excluding air boarding*1 N ach figure is for before the elimination of consolidated transactions. In addition, the company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, issued*2 E

1,000 ton-km
1,000 ton-km

343,5292,429,268

328,182
2,407,691

237,874
1,948,205

231,515
3,113,671

280,599
2,795,737

Promoting workstyle research with outside stakeholders

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.
 ome of these include cooperation agreements with councils rather than municipalities.
*3 S*4 J apan Airlines Co., Ltd. onlyTOP

JAL REPORT 2023

118

Data Section

117

FY2020

Sustainability* *Available Seat Kilometers 6 7*
Passenger Load Factor 7
Cargo and Mail
Domestic revenue cargo ton-km
International revenue cargo ton-km

FY2019Growth Strategy* *Revenue Passenger Kilometers 5 7

FY2018The JAL Group Value Creation Story

SafetyAircraft accidents (cases)
Serious incidents (cases)
Irregular operations*1
Safety event*2
System problems (Engine)
Parts departing from Aircraft
Aircraft
Airbus A350-900
Boeing 777-300ER
Boeing 777-300
Boeing 777-200ER
Boeing 777-200
Boeing 787-9
Boeing 787-8
Boeing 767-300ER
Boeing 767-300
Boeing 737-800
Boeing 737-400
Embraer 170/Embraer 190
ATR42-600/ATR72-600
De Havilland DHC-8-400CC
De Havilland DHC-8-400
SAAB340B
Flight Data
Airports served
Domestic flights
International flights
Number of flights
Domestic flights
International flights
Total
Percentage of flights operated
Domestic flights
International flights
On-time departure rate
Domestic flights
International flights
Total
On-time arrival rate
Domestic flights
International flights
Total
Number of partner airlines*
Domestic flights 3International flights
Traffic Data
Domestic flights (FSC)
Total passengers
Increase in domestic passenger traffic*4
Number of inbound travelers to Japan
Dokokani miles*
Revenue Passenger Kilometers 5*
Available Seat Kilometers 6
Passenger Load Factor
International flights (FSC)*
Total passengers 6

Chapter 5 Data Section

1. Data Highlights

2. ESG Data

Business Data
3.3.Business
Data

4. Financial Data

5. Other Data

Introduction

International Route Map
Number of cities in service
376 Airports 367 cities（as of May 31, 2023）

The JAL Group Value Creation Story
Growth Strategy
Sustainability● The above route map includes codeshare ﬂights.
● The above map is not geographically correct. This is forthe purpose of placing JAL's online cities in the center.
● Dashed lines ( - - - - ) indicate a one-way route.

Data Section

119

JAL REPORT 2023

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JAL REPORT 2023

120

Chapter 5 Data Section

1. Data Highlights

Business Data
3.3.Business
Data

2. ESG Data

4. Financial Data

5. Other Data

Consolidated Subsidiaries

Number of cities in service
63 Airports 58 cities（As of May 31, 2023）*Excluding LCC flights(as of March 31, 2023)

Corporate Name
Rishiri

Asahikawa(Center of Hokkaido)
Obihiro(Tokachi Obihiro)

Sapporo(New Chitose)

Memanbetsu(Abashiri・Bihoro・Kitami)

Air Transport Business

Other Segments

Kushiro(Tancho Kushiro)

Full Service Carrier
100.0

—

100.0

JAPAN AIR COMMUTER CO., LTD.

300

60.0

—

60.0

HOKKAIDO AIR SYSTEM CO., LTD.

490

57.3

—

57.3

JAPAN TRANSOCEAN AIR CO., LTD.

4,537

72.8

—

72.8

Passenger SalesRYUKYU AIR COMMUTER CO., LTD.

396

—

74.5

74.5

JALPAK CO., LTD.

ZIPAIR Tokyo Inc.

100

100.0

—

100.0

Yamagata(Oishii Yamagata)

SPRING JAPAN CO., LTD.

100

66.7

—

66.7

Sendai

Airport Passenger Handling

Low Cost Carrier
Hanamaki(Iwate Hanamaki)

Niigata

Yamaguchi Ube
Kitakyushu(Kokura)Oita

Fukuoka

Nagasaki

Hiroshima
Takamatsu
Matsuyama

Osaka(Itami)
Osaka(Kobe)

Osaka(Kansai)

Nagoya(Chubu)Shizuoka(Mt.Fuji Shizuoka)

Tokushima(Tokushima Awaodori)

Kochi(Kochi Ryoma)

Nanki Shirahama

AmakusaMiyazaki(Miyazaki Bougainvillea)

KagoshimaTanegashima(Cosmoport Tanegashima)

Tokunoshima(Tokunoshima Kodakara)
Okinoerabu(Erabuyurinoshima)
Yoron

Kumejima

Minami-Daito* Services are not available on select routes during certain periods of the year.

TaramaYonaguni

Kita-Daito
Okinawa(Naha)

MiyakoIshigaki(Painushima Ishigaki)* Some flights between Osaka (Itami) and Kumamoto are also codeshare flights with AMX.

70.0

HKD1,000
1,960

46.4

4.6

51.0

80

96.7

1.1

97.8

30

16.7

83.3

100.0

JALPAK INTERNATIONAL HAWAII, INC.

USD1,000
1,000

—

100.0

100.0

JALPAK INTERNATIONAL (EUROPE) B.V.

EUR1,000
1,600

—

100.0

100.0

JALPAK INTERNATIONAL (FRANCE) S.A.S.

EUR1,000
160

—

100.0

100.0

EURO-CREATIVE TOURS (U.K.) LTD.

GBP1,000
100

—

100.0

100.0

JAL SATELLITE TRAVEL CO., LTD.

HKD1,000
750

—

100.0

100.0

PT. TAURINA TRAVEL DJAYA*

IDR1,000
500,000

—

49.0

49.0

100

51.0

—

51.0

2,558

21.6

48.1

69.7

JAL INFORMATION TECHNOLOGY CO., LTD.

702

100.0

—

100.0

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

SJ Future Holdings Corporation

100

50.5

—

50.5

JAL AGRIPORT CO., LTD

100

49.0

—

49.0

100.0

—

100.0

JAL SKY AIRPORT OKINAWA COMPANY., LTD.

33

66.7

33.3

100.0

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

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

JAL KANSAI AIRCARGOSYSTEM CO., LTD.

100

69.2

—

69.2

JAL CARGO SERVICE CO., LTD.

50

100.0

—

100.0

JAL BUSINESS AVIATION CO., LTD.

100

51.0

—

51.0

100

100.0

—

100.0

Airport-Related Business
JAL ABC, INC.

OthersJALUX INC.

*

JAL CARGO HANDLING CO., LTD.

50

—

100.0

100.0

JAL BRAND COMMUNICATIONS CO., LTD.

JAL CARGO SERVICE KYUSHU CO., LTD.

20

40.0

40.0

80.0

JTA INFORMATION & COMMUNICATION CO., LTD.

50

—

100.0

100.0

JAL SBI FINTECH CO., LTD.

45

51.0

—

51.0

Passenger Sales
JAL SALES CO., LTD.

100

100.0

—

100.0

JAL SUNLIGHT CO., LTD.

20

100.0

—

100.0

JAL NAVIA CO., LTD.

50

100.0

—

100.0

JALUX AIRPORT INC.

15

—

100.0

100.0

OFFICIAL FILING CO., LTD.

10

50.0

40.0

90.0

JPRO CO., LTD.

10

—

100.0

100.0

USD
1,000
2,000

100.0

—

100.0

MILEAGEJAL MILEAGE BANK CO., LTD.

40

100.0

—

100.0

Airport-Related Business
JLC INSURANCE COMPANY LIMITEDJAL ROYAL CATERING CO., LTD.

2,700

51.0

—

51.0

Data Section●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) - Sapporo (Okadama),
Nagoya (Komaki)-Izumo, Nagoya (Komaki)-Kochi, Nagoya (Komaki)-Fukuoka,
Nagoya (Komaki)-Kumamoto, Nagoya (Chubu) - Kochi 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.
●The sections between Fukuoka and Fukue, Fukuoka and Tsushima, Nagasaki and Iki, and Nagasaki andTsushima are codeshare sections with Oriental Air Bridge (ORC). It will be operated by ORC equipment and crew.

3.4

100

Cargo

Kikaijima

66.6

Sustainability

Amami-Oshima

100

JAL SKY CO., LTD.

Maintenance

Yakushima

Total (%)

JAL JTA SALES CO., LTD.

Ground Handling

Kumamoto(Aso Kumamoto)Indirect (%)

Growth Strategy

Okayama(Okayama Momotaro)

Nagoya(Komaki)Tokyo(Haneda)Tokyo(Narita)

Direct (%)

Cargo
JUPITER GLOBAL, LTD.

Hakodate

Ratio of Voting Rights

Paid-in Capital(Millions of yen)

JAL AIRTECH CO., LTD.
100

Akita

Tajima(Kounotori Tajima)

Corporate Name

Other Segments

Misawa(Hachinohe・Towada)

Izumo(Izumo Enmusubi)

Total (%)

Air Transport Business Segment

Aomori

Komatsu(Kanazawa・Fukui)MatsumotoShinshu Matsumoto)Indirect (%)

J-AIR CO., LTD.

Okushiri

Oki(Oki Island Global Geopark)

Ratio of Voting Rights
Direct (%)

The JAL Group Value Creation Story

Sapporo(Okadama)

Paid-in Capital(Millions of yen)

Introduction

Domestic Route Map* Although JAL’s ownership is 50% or less, it is considered a subsidiary because JAL
has substantial control.

121

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122

Chapter 5 Data Section

1. Data Highlights

2. ESG Data

Financial Data
4.4.Financial
Data

3. Business Data

5. Other Data

(Billion yen)Japanese GAAPFY2013

FY2014FY2015FY2016FY2017FY2018FY2019IFRS*1

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

1,216.6
583.1
160.1
565.0

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

99,616
181,352,000

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

Stock
Number of shareholders
Outstanding Shares Issued

473.36
1,558.15
95.00
362,671458.45
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

15.8
36.0
16.9

12.7
26.5
13.0

13.4
20.3
12.8

15.7
21.5
13.7

13.2
18.1
10.3

12.6
13.3
9.7

11.8
13.6
9.1

7.1
4.7
5.2

Shareholder's equity ratio (%)

46.4

51.5

52.7

53.4

56.2

57.2

57.4

58.9

D/E ratio (Times)
EBITDA margin(%)
EBITDAR margin(%)
Unit cost (yen)*11
Unit cost (yen) (Including fuel cost)
Dividend payout ratio (%)

0.3x
22.3
24.8
8.4
11.5
20.1

0.2x
19.1
21.5
8.6
12.2
17.5

0.1x
19.8
21.8
8.7
12.3
25.3

0.1x
22.3
24.0
9.1
11.7
24.9

0.1x
20.6
22.2
9.4
11.7
20.6

0.1x
20.6
22.1
10.1
12.5
29.4

0.1x
20.2
21.5
10.4
13.1
32.3

0.2x
16.9
18.4
10.6
13.2
35.3

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 (%)*7

JAL REPORT 2023

406.6
44,74534,036
7,525
76.1
11.9
9.1

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

485.2
36,44323,01230,020
63.1
21.1
13.3

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

50.4
1,378

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

25.0
360

25.4
366

24.2
356

23.3
363

22.2
357

22.4
364

21.8
343

20.7
328

FY2022

FY2022

1,385.9
1,308.8
88.8
88.1
48.0
80.8
▼233.7▼38.8▼152.8
162.4
251.2

481.2
885.0
▼398.3▼404.0▼286.6▼219.5▼91.0
388.6▼310.5182.4▼215.8682.7
940.2▼239.4▼246.6▼177.5▼103.5▼173.7359.2▼277.3178.4▼61.0

1,375.5
1,344.6
64.5
52.4
34.4
292.9
▼ 112.7▼ 38.4
180.1
157.4
222.0

10,301,722
10,070,291
483,509392,638
257,792
2,193,574▼ 844,499▼ 288,062
1,349,075
1,179,158
1,662,667

239.6

89.6

161.3

117.4

879,862

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

2,520.6
856.9
925.5
816.2

18,876,679
6,417,711
6,931,049
6,113,143

236,234
337,143,500

389,848
437,143,500

481,161
437,143,500

488,003437,143,500——

Per share data (yen, U.S. dollars)Profit attributable to owners of parent
Shareholders' Equity
Dividends
Average number of shares during the fiscal year (thousands of shares)

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
437,00778.77
1,867.91
25.00
437,007

0.58
13.98
0.18
—

Key Performance Indices
EBIT margin (%)
ROE (%)ROA (%) *7
ROIC (%) *8
Shareholder's Equity Ratio (%)
Shareholder's Equity Ratio based on credit rating *10
D/E ratio (Times)
EBITDA margin (%)

6.4
4.6
4.3
4.7
51.2
—
0.3x
18.1

—
—
—
—
45.0
—
0.5x
—

—
—
—
—
33.7
41.1
1.2x
—

4.7
4.3
2.6
3.3
32.4
39.3
1.1x
16.1

—
—
—
—
—
—
—
—

39.3

—

—

31.7

—

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

417.5
38,03927,310
4,348
71.8
15.3
11.0

3,126,832
—
—
—
—
—
—

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

451.1
35,24323,09030,109
65.5
19.5
12.8

3,378,469
—
—
—
—
—
—

59.7
2,407

96.5
1,948

182.8
3,113

188.9
2,795

1,414,678
—

20.7
328

21.7
237

20.7
231

20.0
280

149,906—

Capital investment (Purchase of non-current assets)
As of fiscal year-end
Total assets
Total equity
Interest-bearing debt
Shareholders’ equity

Dividend payout ratio (%)
Business Data(Full Service Carrier)International passenger operations
Passenger revenues
ASK (million seat kms)*12*13
RPK (million passenger kms)*12*14
Revenue passengers carried (1,000)*12
Revenue passenger load factor (%)*12
Yield (yen)*12
Unit revenue (yen)*12
Domestic passenger operations
Passenger revenues
ASK (million seat kms)*13
RPK (million passenger kms)*14
Revenue passengers carried (1,000)
Revenue passenger load factor (%)
Yield (yen)Unit revenue (yen)International cargo operations
Cargo revenue
Revenue cargo ton-km (million ton kms)
Domestic cargo operations
Cargo revenue
Revenue cargo ton-km (million ton kms)

*1	IFRS is adopted from FY2020.
Accordingly, figures for FY2019
are also calculated under IFRS forcomparison.
*2	US dollar amounts are provided
for convenience only, based on theexchange rate of ¥133.53/USD on
March 31, 2023.
*3	Free cash flow = Cash flow fromoperating activities + Cash flow frominvesting activities*4	[Japanese GAAP] EBITDA =Operating Profit + Depreciation andAmortization [IFRS] EBITDA = EBIT +Depreciation and Amortization*5	[Japanese GAAP] EBITDAR =Operating income + Depreciation
expense + Aircraft lease*6	Japan Airlines Co., Ltd. conducted
a 2-for-1 stock split on October 1,
2014. Figures for profit per share, net
assets per share and dividend pershare have been calculated assuming
the stock split was conducted at thestart of FY2012.
*7	[Japanese GAAP] ROA = Operating
profit/Average of total assets at
beginning and end of a fiscal year
[IFRS] ROA = EBIT/Average of total
assets at beginning and end of a
fiscal year*8	[IFRS] ROIC= EBIT (after tax) /Average of fixed assets*9 at the
beginning and end of the fiscal year*9	Fixed assets = Inventories + noncurrent assets - deferred tax assets assets for retirement benefits*10	Shareholder's Equity Ratio based on
credit rating evaluation considering
Hybrid Finance*11	Unit cost = Consolidated air transport
cost (excluding fuel costs)/ASK*12	From FY2015, revenue passengers
carried, revenue passenger
kilometers, available seat kilometers
and load factor include codesharetickets sold by other companies for
JAL operated flights.
*13	ASK (available seat kilometers): A unitof passenger transport capacity: Total
number of seats x Distance flown(kms)*14	RPK (revenue passenger kilometers):
Total flight distance covered byrevenue passengers: Number ofrevenue passengers x Distance flown(kms).

TOP

JAL REPORT 2023

Data Section

Business Data
International passenger operations
Passenger revenues
ASK (million seat kms)*12*13
RPK (million passenger kms)*12*14
Revenue passengers carried (1,000)*12
Revenue passenger load factor (%)*12
Yield (yen)*12
Unit revenue (yen)*12
Domestic passenger operations
Passenger revenues
ASK (million seat kms)*13
RPK (million passenger kms)*14
Revenue passengers carried (1,000)
Revenue passenger load factor (%)
Yield (yen)Unit revenue (yen)International cargo operations
Cargo revenue
Revenue cargo ton-km (million ton kms)
Domestic cargo operations
Cargo revenue
Revenue cargo ton-km (million ton kms)

FY2021

Sustainability

1,344.7
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

FY2020Growth Strategy

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

FY2019Thousands of
U.S. dollars*2

The JAL Group Value Creation Story

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

1,238.8
1,043.5
195.2
185.8
171.6
264.8
▼129.0
▼60.6
135.8
81.0
276.2
307.1
121.8

Stock
Number of shareholders
Outstanding Shares Issued

123

FY2012Years ended March 31
Operating revenue
Operating expenses
Operating income
Ordinary income
Net 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)(Billion yen)

Introduction

4. Financial Data124

1. Data Highlights

2. ESG Data

Financial Data
4.4.Financial
Data

3. Business Data

5. Other Data

Evaluation and Analysis of Financial Conditions■ 1. Summary of Operating
results

Number of Visitors to Japan
35(Millions of visitors)

30
25
20
15
10
5
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

0

Source: Japan National Tourism Organization

Global Passenger Traffic (scheduled flights)
5,000

trillion

64.5

EBIT

billion yen

The profit attributable toowners of the parent

billion yen

34.4

billion yen

fuel prices. Personnel costs increased by 46.5 billion yen due tothe return of personnel who had been transferred outside thecompany in response to a recovery in business performance andan increase in performance-linked bonuses. On the other hand,
as a result of cost management efforts, total operating expenses
were 1,344.6 billion yen, or an increase of 43.0 percent from thesame period in the previous year.
As a result of the above, the EBIT was a gain of 64.5 billion yen(EBIT loss of 239.4 billion yen in the same period in the previousyear).The profit attributable to owners of the parent was 34.4 billion
yen (the loss attributable to owners of the parent of 177.5 billion
yen in the same period in the previous year).

In terms of revenue, international passenger revenue increased
by 348.7 billion yen from the previous year due to a recovery indemand mainly from inbound travelers as a result of the easingof restrictions on entry into Japan. Domestic passenger revenue
increased by 216.0 billion yen from the previous year due torecovery mainly in tourism demand driven by the government's"Nationwide Travel Support Program", as well as improved
customer preference and increased efficiency. As a result, total
revenue was 1,375.5 billion yen, or an increase of 101.5 percent
from the same period in the previous year.
In terms of expenses, fuel costs increased by 177.8 billion yen due
to an increase in fuel consumption resulting from the resumptionof flights and an increase in the unit price of fuel due to higher

FY2022 Changes in EBIT

(Millions of passengers)＋stands for profit increase (revenue increase, cost decrease)stands for profit decrease (revenue decrease, cost increase)

RPK y/y：＋191.3％
ASK y/y：＋59.8％

3,750

The JAL Group Value Creation Story

In FY2022 (April 1, 2022 to March 31, 2023), air passenger
demand recovered steadily as the shift toward balancing the
COVID-19 pandemic’s prevention and socioeconomic activities
gained momentum. The JAL Group flexibly secured its airtransportation network both domestically and internationally inaccordance with the situation of the COVID-19 pandemic. In
addition, despite a recovery in passenger demand that took
longer than expected, we made every effort to recover from the
COVID-19 pandemic by working to improve earnings throughcomprehensive cost-cutting efforts and maximizing sales in the
cargo business domain.
Toward fiscal year 2023 and beyond, the JAL Group will continue
these efforts and fulfill its social mission as a public transportcompany in order to respond to the post-pandemic air transportdemand.

1 375.5

Revenue

Introduction

Outline of Operating Results

Analysis of Consolidated Financial Results▲

Chapter 5 Data Section(JPY Bn)＋304.0Bn
2,500

31.2

＋1,019.9％
122.3%▲

Int'l
Passenger

45.1%

Aircraft

Personnel

＋4.2
＋3.1%

153.0

1,923 3,687▲▲

Landing &Navigations fees
Sales Commissions
Services
Expenses of Travel
AgencyOther than above
Total

Midde East
3.6%

3.0%

801

Central and South America
2.6%

FSC
FX
(TTL)

—
＋2.1
＋2.1

FSC
FX
(TTL)

＋26.9
＋44.1
＋71.1

Expenses

27.0

75.5
153.0

404.4Bn ( 43.0%)

FY2022 Performance by Business Domain

*1 *6

World

Source: Japan Aircraft Development Corporation

FY22 (JPY Bn)
RevenueEBIT

In FY2022, the revenue increased by 101.5 percent year on year to 1 trillion 375.5 billion yen, the operating expense increased by 43.0
percent year on year to 1 trillion 344.6 billion yen, the loss/earning before financing and income tax (hereinafter referred to as “EBIT”) was again of 64.5 billion yen (EBIT loss of 239.4 billion yen in the same period in the previous year). The profit attributable to owners of the parent
was 34.4 billion yen (the loss attributable to owners of the parent of 177.5 billion yen in the same period in the previous year).

Full Service Carrier

LCC*2

Cargo/Mail

883.8
24.9

224.7

Mileage, Lifestyle and Infrastructure*3
30.6

236.2
47.7

8.0

Data Section

Outline of Operating Results for FY2022

JAL REPORT 2023

＋16.7
＋13.6
＋30.4

Revenue ＋692.8Bn (＋101.5%)

8,486 18,361
3.4%

125

FSC
FX
(TTL)

▲

354

Africa

442

＋10.1
＋28.4
＋38.5

▲

180

1,751

FSC
FX
(TTL)

▲

774

FSC*5・FX

▲
▲

3.9%

14.2
18.0

▲

Asia/Pacific

18.0

▲
▲

FY2021

▲

3.4%

64.5
FY2022239.4

2,903 6,973＋86.9%

Sustainability

1,975 4,270
EuropeOthers*4

＋15.6
45.1%

＋507.0％

North America
2.9%

Other
Expenses

19.0%＋348.7

2042

46.5

▲

RPK in Billions

Maintenance＋55.7%
▲

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

LCC*1 *2

＋27.9

▲

＋2.9％

177.8

▲

Compound Annual Growth Rate 2019-2042＋153.0％＋84.5▲＋91.9％＋9.2＋6.4＋216.0

Air Passenger Traffic Forecast

2019

Cargo/
Mail

Domestic
Passenger

Source: International Civil Aviation Organization

Full Service
Carrier
Other*1▲0Growth Strategy

Mileage, LifestyleandInfrastructure*1 *3 Fuel

1,250

*1 Due to a change in the aggregation standard for LCC revenues, the figures for FY2022 have been retroactively adjusted.
*2 Revenues of the two consolidated subsidiaries, ZIPAIR and SPRING JAPAN. EBIT of the two subsidiaries and any factors related to the affiliated company accounted for by theequity-method, Jetstar Japan*3 Mileage, Lifestyle and Infrastructure and others = Travel, mileage alliance, commissioned business income, etc.
*4 Other income/expenses=Gain on sales of aircraft, other income/expenses, equity in earnings of affiliates, and investment income/expenses*5 FSC=Fuel Surcharge*6 The revenue and EBIT by each business domain shown above are calculated by a virtual method; Not showing the actual Revenue and EBIT. The criteria shown above does notmatch Air Transport Business segments or others.

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JAL REPORT 2023

126

Chapter 5 Data Section

1. Data Highlights

2. ESG Data

Financial Data
4.4.Financial
Data

3. Business Data

■ 2. Performance by Business Domain

Revenuetrillion

261.0

billion yen

Components of Revenues from the Air Transportation Segment （Millions of yen）

(1) Performance of Air Transportation Segment

FY2022

FY2021y/y (%)FY2022

FY2021

International (Full Service Carrier)y/y(%)FY2022

FY2021y/y(%)

America

3,195

12,015+276.0America

29.2

73.9

+44.7

Europe840

3,640+333.0Europe

18.8

66.7

+47.9

Passenger operations

68,785417,526+507.0Cargo operations

182,877

188,902+3.3

Mail-service operations

11,08912,241+10.4

Luggage operations

746

1,766

+136.7

263,499

620,437+135.5Passenger operations

235,100

451,127+91.9

Cargo operations

20,751

20,017▼3.5

Mail-service operations

3,653

3,631

▼0.6

Luggage operations

312

409

+31.4

259,817475,187+82.9

Passenger Revenue (JPY Bn)

235.1

451.1

+91.9

523,316

1,095,624+109.4Passengers (ʼ000)

16,23830,109+85.4

ASK (MN seat km)

24,53535,243+43.6

Subtotal(%)● Load Factor

1,711

9,516

+456.0Asia/Oceania

26.2

73.4

+47.2

China

103

203

+97.5

China

33.4

54.0

+20.6

Hawaii/Guam

176

1,934

+994.7

Hawaii/Guam

34.5

64.8

+30.3

6,027

27,310+353.1

Total

26.5

71.8

+45.3

Asia/Oceania

Total

The JAL Group Value Creation Story

In FY2022, revenue in the Air Transportation Segment increased
by 96.3 percent year on year to 1,261.0 billion yen and the profit
before investing, financing and income tax (hereinafter referred to
as “Segment profit (or loss)”) was 50.7 billion yen (segment loss of
250.1 billion yen in the same period in the previous year). (Revenue
and Segment profit (or loss) are before the elimination transactions
between segments.)(MN passenger km)● RPKDomestic (Full Service Carrier)Passenger Revenue (LCC)
8,224+306.82,738

30,674─

Other Revenues

116,509134,753+15.7

Total Revenues

642,565

1,261,052

+96.3

68.7

417.5

+507.0

Passengers (ʼ000)

892

4,348

+387.2

America

46

38+400.715

18+620.9

ASK (MN seat km)

22,78038,039+67.0

Europe

RPK (MN passenger km)

6,027

27,310+353.1

Asia/Oceania

28

34+633.88

3+159.43

7+1,246.1

100

100+507.0L/F (%)

26.5%

71.8％

+45.3pt

Revenue per Passenger (JPY) *1

77,07396,015+24.6

Hawaii/Guam

11.4

15.3

+34.0

Total

3.0

11.0

+263.5

Yield (JPY) *2

Unit Revenue (JPY) *3(‘000)● Revenue Passengers Carried

RPK (million passenger kilometers) (left hand scale)
ASK (million seat kilometers) (left hand scale)

Revenue Passenger-Load factor (%) (right hand scale)

60,00090.0
71.8

50,00040,00038,03927,31020,000America

342

1,291

+276.8Europe90389+329.5+495.2

Asia/Oceania

377

2,247

80.0

China

52

103

+96.6

70.0

Hawaii/Guam

28

315

+1,003.5

60.0

Total

892

4,348

+387.2

Japanese GAAP

2019

2021
2020
IFRS

2022

JAL REPORT 2023

y/y(%)

America

10,962

16,254+48.3

0Europe

4,467

5,455

+22.1

Asia/Oceania

6,530

12,968

+98.6

308

377

+22.3

511

2,983

+482.922,78038,039

+67.0

China
*1 Revenue per Passenger = Passenger Revenue/Passengers*2 Yield = Passenger Revenue/RPK*3 Unit Revenue = Passenger revenue/ASK

FY2022

FY2021

10.0
（FY）

+3.5

Yield (JPY)*2

19.4

19.5

+0.5

Unit Revenue (JPY)*3

9.6

12.8

+33.6

Hawaii/Guam
Total

20,00040
30

10,000*1 Revenue per Passenger = Passenger Revenue/Passengers*2 Yield = Passenger Revenue/RPK*3 Unit Revenue = Passenger revenue/ASK

20
10
2018

2019

2019

2020

FY2021

FY2022y/y(%)

182.8

0

(FY)

④LCC

188.9

+3.3

Mail-service operations (JPY Bn)

11.0

12.2

+10.4

Revenue cargo ton-km (MN ton km)

3,113

2,795

160

125

Mail ton-km (MN ton km)

2022

2021
IFRS

Japanese GAAPInternational
Cargo operations (JPY Bn)

50

23,090

10.2
21.5

Domestic
Cargo operations (JPY Bn)

20.7

20.0

Mail-service operations (JPY Bn)

3.6

3.6

Revenue cargo ton-km (MN ton km)

231

280

+21.2

Mail ton-km (MN ton km)

22

22

3.5
0.6

For LCC operations, for ZIPAIR the passenger traffic was 488,210(number of passengers), its revenue passenger kilometers(RPK) was 2,471,419 (1,000 passenger-km), and its available
seat kilometers (ASK) was 4,674,955 (thousands). Likewise, for
SPRING JAPAN the passenger traffic was 481,206 (number ofpassengers), its revenue passenger kilometers (RPK) was 409,361(1,000 passenger-km), and its available seat kilometers (ASK) was
760,306 (thousands).

2.8(2) Others
Results of JALPAK Co., Ltd., JALUX Co., Ltd. and JAL Card Co, Ltd. are shown below.

JALUX Co., Ltd.
FY2022

FY2021

FY2022

FY2021y/y(%)

Overseas travelers handled (10,000
number of travelers)

0.0

1.7

—

Domestic travelers handled (10,000
number of travelers)

100.4

213.1

+112.3

Revenue (before elimination of
consolidated transactions, billions of yen)

45.8

108.8

+137.5

Revenue (before elimination of
consolidated transactions, billions of yen)—y/y(%)

27.9—

JAL Card Co., Ltd.
FY2022

FY2021

Data Section

2019(MN seat km)

● ASK

20.0

2018

+16.2pt

14,983

JALPAK Co., Ltd.

40.0
30.0

10,000127y/y(%)

50.0

30,00065.5％

14,47860

Sustainability

International Passenger

0

FY2022

FY2021

49.3％

Revenue per passenger (JPY)*1③Cargo and Maily/y(%)

Passenger Revenue (JPY Bn)

China

L/F (%)

70

30,000(%)● Passenger Revenue

FY2022+91.0

80
35,24365.5

0Operation Performance by Geographic Segment
FY2021

23,09040,000y/y(%)

Memberships (10,000 number ofmembers)

346.1

344.3

Revenue (before elimination of
consolidated transactions, billions of yen)

18.5

17.1

▲

Subtotal

12,089

Revenue Passenger-Load factor (%) (right hand scale)▲y/y(%)

2,021

RPK (MN passenger km)▲

FY2022

FY2021

International Passenger

─

RPK (million passenger kilometers) (left hand scale)
ASK (million seat kilometers) (left hand scale)

Growth Strategy①International Passenger Operations (Full Service Carrier)

SPRING JAPAN

22,449▲* For SPRING JAPAN, as the results from the acquisition of the subsidiary on June
28, 2021 until the end of June 2021 are minor, traffic results for this period are notincluded as traffic results for LCC.
* Regarding percentage or ratio compared to the prior year, if changes exceed 1,000
percent, “-” is shown717

y/y(%)▲

ZIPAIR

FY2022▲

Total revenues from internationaland domestic operations

FY2021▲

Subtotal

Domestic Passengers②Domestic Passenger Operations (Full Service Carrier)

Introduction

1

5. Other Data

0.5
7.3

Regarding percentage or ratio compared to the prior year, if changes exceed 1,000%, "-" is shown.

TOP

JAL REPORT 2023

128

+52.3

Maintenance

69.1

100.3

+31.2

+45.1

Sales Commissions (Air Transport)

7.7

22.0

+14.2

+184.2Services*1

14.8

32.9

+18.0

+121.8Other Variable cost*2

103.0

177.6

+74.6

+72.4

Aircraft*3

140.1

135.8

4.2

▲

▲

Personnel*3

245.7

292.3

+46.5

+19.0

Other cost*3

179.5

207.5

+28.0

+15.6

3.1

Total Operating Expenses

940.2

1,344.6+404.4+43.0

Actual Fixed Costs*4

465.7

492.5

+26.7

+5.7

Cash Flows from Operating Activities

292.9

Cash Flows from Financing Activities▼112.7

Billion yen▼38.4

Billion yen

Billion yen

LeasedTotal

Total (End of FY22)Total 2 (End of FY21)

Airbus A350-900

11

4

15

15

12

4

16

+1

Boeing 777-300ER

13

0

13

13

13

0

13

0

Boeing 777-300

4

0

4

0*

0

0

0

0

Boeing 777-200ER

8

0

8

5

3

0

3

Boeing 777-200

4

0

4

0

0

0

0

0

292.9

+396.4

178.4

157.4

▲

128.6

+60.8

277.3

180.1

+457.4

359.2

▲

▲

Capital Investment
1
Free Cash Flow*▲

Total Cash Flow*

2

189.5

81.9
▲

Cash Flow from Financing Activities

21.0

+61.0

173.7

61.0

112.7

38.4

40

4

44

33

28

4

32

19

3

22

22

19

3

22

0

Boeing 787-8

25

0

25

25

25

0

25

0

Boeing 767-300ER

29

0

29

29

16

11

27

73

3

76

76

60

14

74

47

12

59

58 *

47

9

56

Middle-sized Total
Boeing 737-800

1

1

2
2
2

47

12

59

58

47

9

56

Embraer 170/
Embraer 190

32

0

32

32

32

0

32

0

De Havilland
DHC-8-400CC

5

0

5

5

5

0

5

0

ATR42-600/
ATR72-600

12

1

13

13

13

1

14

+1

Small-sized Total

2

Regional Total

49

1

50

50

50

1

51

+1

Full Service Carrier Total

209

20

229

217

185

28

213

Boeing 787-8

4

0

4

4

5

0

5

+1

Boeing 737-800

0

6

6

6

0

6

6

0

LCC Total

4

6

10

10

5

6

11

+1

Full Service Carrier + LCC Total

213

26

239

227

190

34

224

3

397.7

141.6

+59.7

222.0

+283.0*1 Free Cash Flow=Cash Flow from Operating Activities + Cash Flow From Investment
Activities*2 Total Cash Flow=Cash Flow from Operating Activities + Cash Flow from Investment
Activities + Cash Flow from Financial Activities*3 EBITDA=EBIT+Depreciation and Amortization■ 6. Financial Position

4

Shareholders’ Equity

816.2

Billion yen

Shareholders’ Equity Ratio

32.4 (39.3 )*2%%

End of FY22

Diff.

For FY2022, shareholder's equity ratio was 39.3% and Net D/E
ratio was x0.1 both in terms of credit rating evaluation basis, kept
at a healthy level.

Balance Sheet
2,375.7

2,520.6+144.81) Assets

Cash and Deposits

494.2

639.2

+145.0Assets at the end of FY2022 were 2,520.6 billion yen, which
increased by 144.8 billion yen from the end of the previous fiscal
year, mainly due to an increase in cash and cash equivalentsbalance.

Balance of Interest-bearing Debt

928.4

925.5

Repayment within
one year*1

86.7(14.4)

111.9(16.6)+25.1(+2.1)(JPY Bn)
End of FY21

Total Assets

2.9

Shareholders' Equity*4

799.7

816.2

+16.5

2) Liabilities

Shareholders' Equity Ratio (%)*2 *5

33.7%(41.0%)

32.4%(39.3%)

1.3pt( 1.7pt)

Liabilities were 1,663.6 billion yen, up 133.9 billion yen from theend of the previous fiscal year, mainly due to the increase ofcontract liabilities.

D/E Ratio (x)*6
Net D/E Ratio (x)*3 *7

1.2x

1.1x

0.5x
（0.3x)

0.4x（0.1x)

0.0x

0.2x( 0.2x)*1 Figures in brackets represent aircraft lease payments within one year
*2 Figures in brackets represent Shareholders’ Equity Ratio based on credit rating
evaluation considering Hybrid Finance*3 Figures in brackets represent Net D/E Ratio based on credit rating evaluationconsidering Hybrid Finance*4 Equity Attributable to Owners of the Parent*5 Ratio of Equity Attributable to Owners of the Parent to Total Assets*6 Interest-Bearing Debt/Shareholders’ Equity*7 (Interest-Bearing Debt - Cash and Deposits)/Shareholders’ Equity

TOP

JAL REPORT 2023

Data Section

Equity increased by 10.8 billion yen from the end of the previous
fiscal year to 856.9 billion yen, mainly due to the net profit
attributable to owners of the parent.

JAL REPORT 2023

2

Boeing 787-93) Equity

129

1

▲

103.5

Cash Flow from Investing Activities

3

Owned

*1 The Difference between Total 1 and Total 2 is retired aircraft

Diff.

▲

Cash flow from financing activities (outflow) was 38.4 billion yen
due to the repayment of long term debts and lease payments (cashinflow of 359.2 billion yen for the previous year).

Depreciation and Amortization

FY2022▲

3) Cash Flows from Financing Activities

Cash Flow from Operating Activities

EBITDA*

RetiredAircraft Excluded

Sustainability

Cash flow from investing activities (outflow) was 112.7 billion
yen mainly due to the acquisition of fixed assets (cash outflow of
173.7 billion yen for the previous year).

FY2021▲

2) Cash Flows from Investing Activities

Total1(JPY Bn)▲

As a result of adding back or subtracting non-cash items including
depreciation and operating receivables and operating payables to/from profit before income tax of 52.4 billion yen, cash flow (inflow)from operating activities was 292.9 billion yen (cash outflow of
103.5 billion yen for the previous year)

Cash Flow▲

1) Cash Flows from Operating Activities

LeasedLCC

The balance of Cash and Cash equivalents at the end of FY2022 increased by 145.0 billion yen from the end of the previous fiscal year to639.2 billion yen.

Diff.

Growth Strategy■ 4. Cash Flow

Cash Flows from Investing Activities

Total 2

Owned

Large-sized Total

Regional*1 Services = Expenses regarding inflight services, airport lounges, cargo equipment,etc.
*2 Other variable cost = Travel agency, Mileage, Ground handling etc.
*3 Includes costs that have variable factors such as the number of flights andpassengers, and temporary and additional costs associated with business model
reform.
*4 Actual Fixed Costs exclude the variable factors such as the number of flights andpassengers, and temporary and additional costs associated with business model
reform.

Large

+18.0

Middle52.6

Full Service Carrier

34.5

End of FY22 (March 31, 2023)

End of FY21 (March 31, 2022)

Small+122.3The JAL Group Value Creation Story+177.8Fleet Information▲▲

Landing and Navigation fees

323.3

Billion yen

▲

145.4

y/y (%)

Capital investments for FY2022 totaled
117.4 billion yen (including intangible
assets). The JAL Group makes
investments for the introduction of new
aircraft to improve operational efficiency,
for intangible assets including investments
to increase competitiveness to meet
diverse customer needs, and for system
investments to improve convenience andefficiency.
Capital expenditures made in FY2022
mainly consisted of the purchase of three
new aircraft (one Airbus A350-900, one
Boeing 787-8, and one ATR42-600) andadvance payments for the purchase of
aircraft.

117.4

▲
▲

Fuel

Diff.

In terms of expenses, fuel expenses increased by 177.8 billion
yen due to an increase in fuel consumption resulting from theresumption of flights and an increase in the unit price of fueldue to higher fuel prices, and personnel expenses increased by
46.5 billion yen due to the return of personnel who had beentransferred outside the company in response to the recovery inbusiness performance and an increase in performance-based
bonuses. On the other hand, as a result of cost management
efforts, overall operating expenses amounted to 1,344.6 billion
yen, or an increase of 43.0% from the same period of the previous
year.
As a result of the above, EBIT was 64.5 billion yen (▼239.4 billion
yen in the same period of the previous year).

Capital Investments▲

FY2022■ 5. Capital Investments and Fleet Procuration

Billion yen▲(JPY Bn)

492.5

Billion yen▲

Major Operating Expense Items

344.6

▲

trillion

Actual Fixed Costs

Introduction

1

5. Other Data▲

Total Operating Expenses■ 3. Analysis of Operating Expenses

FY2021

Financial Data
4.4.Financial
Data

3. Business Data▲

2. ESG Data▲

1. Data Highlights▲

Chapter 5 Data Section130

1. Data Highlights

2. ESG Data

Financial Data
4.4.Financial
Data

3. Business Data

5. Other Data

■ 10. Distribution of Profits

A– (Stable)

Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer ratingA (Stable)■ 8. Fuel and FX Hedging

For the fuel market, the amount of fuel used on international flights
can be hedged to a certain extent by fuel surcharges. Therefore,
the amount of fuel used on domestic flights is hedged.
For the foreign exchange market, the revenue denominated inforeign currency is about the same size as expenses other thanfuel that are denominated in foreign currency. Thus, there is a riskin the fuel cost portion. The fuel used on international flights canbe hedged by fuel surcharge, so the JAL Group hedges against
the fuel used on domestic flights. However, the JAL Group willtake flexible actions as there are some situations in which foreign
currency revenue exceeds foreign currency expenses excluding
fuel costs.
Fuel/FX Markets
FY2022Int'lroutesFSC*1
revenuereceived

Domestic
routesHedgedFX hedging

Foreign currency
expensesNon-fuelcosts

Foreign currency
revenues
FSC*1
revenues
received

Int'l
Fuel routes
costs
Domestic
routesHedgedy/y (%)

Singapore Kerosene(USD/bbl)

81.6

128.3

+57.2

Dubai Crude Oil (USD/bbl)

74.3

95.2

+28.1

FX rate (JPY/USD)

111.6

134.6

+20.6

(2) Overcoming Market Risks
The impact of market volatility is mitigated by hedging and fuelsurcharges. Although there is some time lag in its effects eachyear, over a medium-term timeframe, the JAL Group has been
largely successful in mitigating the risk of market fluctuations.
Based on cumulative changes in prices over a certain periodof time, the JAL Group has offset the impact of those changes
through hedging and fuel surcharges.

■Hedging for consumption volume indomestic operations to deal with fuelprice changes■Consumption volume in int'l Operations
covered by fuel surcharge revenues■Hedging conducted for domestic fuelcosts to deal with effects of FX changes
to fuel costs■Current foreign currency revenues
exceeded foreign currency expenses(excluding fuel costs) due to risingdemand from overseas*1 FSC…Fuel Surcharge

Illustrative chart of cumulative price impacts

Fuel prices/forex
FSC/hedging
impactProfit fluctuation

72.8

80.9

85.0

150.8
49.2
100

32.3
20.0

0
100
200
300

38.3

35.3
53.4

39.3
48.0

20.0
18.8

2018

2019

Japanese GAAP

Profit or Loss (billion yen)
Dividend payout ratio*1 (%)

40.0

31.7 31.7

20.0
18.8 0 0

2019

0

286.6

0

34.4
10.9

0.0

177.5

2020

2021

2022

(FY)

IFRS

Total dividends (billion yen)
Total return ratio*2 (%)

Repurchase amount (billion yen)

*1 Payout Ratio = Total Dividends / Profit or Loss*3*2 Total Return Ratio = (Total Dividends + Share Repurchases) / Profit or Loss*3*3 Profit attributable to owners of parent for FY2018 excludes the effects of income
taxes deferreddemand is expected to make a steady recovery toward the next
fiscal year. As there were no interim dividends for FY2022, theannual dividend is 25 yen per share. We would like to express our
deep appreciation to our shareholders for their continued support
during the pandemic.
We forecast a dividend of 40 yen per share for FY2023 including
an interim dividend of 20 yen per share, as cash flow is steadily
recovering,
positive profitability is expected for the full fiscal year, and as airtransport demand is expected to make a steady recovery toward
the next fiscal year.
Going forward, we will strive to achieve our basic policy of acontinuous and stable shareholder return, that is in line with ourbusiness recovery.

■ 11. Business Risks■ 9. Retirement Benefit Obligations
benefit plans. The board and trustee of the pension fund are
required by law to act in the best interest of plan participants andare responsible for managing plan assets based on a prescribedpolicy. As of March 31, 2023, Japan Airlines and 38 consolidated
subsidiaries had lump-sum retirement plans. The JAL Group also
had three corporate pension funds, including the Japan Airlines
Welfare Pension Fund. Certain overseas subsidiaries had defined
benefit plans. The Japan Airlines Welfare Pension Fund also
introduces an option similar to a cash-balance plan as well asother alternatives. The JAL Group Pension Fund, which is used bysome domestic consolidated subsidiaries, uses a cash balance
pension plan.

(1) Pandemic Risk
①Risks related to short-term impact on business performance②Risks related to medium- to long-term changes in thebusiness environment(2) Natural Disaster Risk and risks related to external factors
including Terrorist Attacks(3) Climate Change Risk, Global Warming Risk and Risks
related to Environmental Regulations(4) External Environment Risk such as International Affairs
and Economic Trends①External Environment Risk
②Competitive Risk

(5) Aircraft Delivery Risk
(6) Market Fluctuation Risk
①Fuel Price Fluctuation Risk
②Exchange Rate Fluctuation Risk
③Capital Market Risk and Financial Market Risk
(7) Aviation Safety 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

Data Section

Japan Airlines and its major consolidated subsidiaries haveadopted funded and non-funded defined benefit plans anddefined contribution plans to fund post-employment benefits for
employees, and almost all employees are eligible for these plans.
When employees retire, and on other occasions, Japan Airlines
and its major consolidated subsidiaries may also provide premium
severance packages, which are not included in calculations of theactuarial difference for defined benefit obligations in accordancewith IFRS. These pension plans are exposed to generalinvestment risk, interest rate risk, life risk and other risks, but
employers deem these risks are insignificant. A pension fund thatis legally separate from the JAL Group manages funded defined200

Sustainability

0（％）(billion yen)

Growth Strategy

FY2021

Fuel hedging

Fuel use

Total return ratio (FY2018-FY2022)

The JAL Group Value Creation Story(1) Hedging Policy

The JAL Group regards shareholder returns as one of its mostimportant management matters. Our fundamental policy is toactively implement shareholder returns through continuous andstable dividends and flexible acquisition of treasury shares, while
securing internal reserves for making investments for corporate
growth and to adapt to changes in the business environment, inorder to build a strong financial structure.
The dividend amount will be determined with an emphasis on
continuity, stability, and predictability, with the standard dividend
payout ratio at approximately 35%. In addition, the JAL Groupwill actively and flexibly consider the acquisition of treasury shares
upon consideration of the company's financial condition and otherfactors. As a result, the JAL Group will strive to achieve a range ofapproximately 35% to 50% for its total payout ratio based on the
total amount of dividends and the acquisition of treasury shares,
by appropriately allocating periodic profits and management
resources to its stakeholders.
The JAL Group also continuously strives to improve capitalefficiency through monitoring the total return on equity ratio, whichis calculated by dividing the sum of total dividends paid out andpurchase of treasury shares by shareholders’ equity. The JAL
Group makes its efforts to maintain this ratio at approximately 3%
or above.
Our dividend policy is to pay dividends twice a year, as interim
dividends and year-end dividends. The decision body for the yearend dividend and interim dividend is the shareholders’ meeting
and Board of Directors, respectively. The company's articles
of incorporation stipulate that the JAL Group "may pay interim
dividends to shareholders with the record date of September 30
each year, upon a resolution by the Board of Directors."
Since the spread of the COVID-19 pandemic, the JAL Group
has not provided dividends for FY2020 and FY2021 as it wasnecessary to place the highest priority on securing liquidity on
hand and strengthening our financial position. However, the JAL
Group has decided to pay its year end dividend at 25 yen per
share for FY2022, as cash flow is steadily recovering, positive
profitability is achieved for the full fiscal year, and as air transport▲

Issuer rating▲

Rating & Investment Information, Inc. (R&I)▲(As of August 2023)

Introduction

JAL’s current credit ratings are shown in the table on the right.

▲■ 7. Rating Information▲

Chapter 5 Data Section

For more information, please visit the JAL website.
WEB

131

JAL REPORT 2023

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

TOP

JAL REPORT 2023

132

Chapter 5 Data Section

1. Data Highlights

2. ESG Data

3. Business Data

Other Data
Data
5.5.Other

4. Financial Data

Company Profile

Stock Information

Corporate Name
Head Office(as of March 31, 2023)

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（as of March 31, 2023）● Stock ExchangePrime Market of the Tokyo Stock Exchange● Stock Code

9201
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
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）● Outstanding Shares Issued● Major Shareholders● 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.
● Limitation on Listing or Recording of Citizens of Foreign Countries

and Other Persons in Register of Shareholders and Register ofBeneficial Shareholders
Civil Aeronautics Act, Article 120-2.

133

JAL REPORT 2023

The Master Trust Bank of Japan, Ltd.(Trustaccount)

69,809,900

15.97

Custody Bank of Japan, Ltd.(Trust account)

19,064,000

4.36

Kyocera Corporation

7,638,400

1.74

Daiwa Securities Group Inc.

5,000,000

1.14

JP JPMSE LUX RE UBS AG LONDONBRANCH EQ CO

4,395,079

1.00

GOVERNMENT OF NORWAY

3,350,686

0.76

NOMURA INTERNATIONAL PLC A/CJAPAN FLOW

2,445,000

0.55

STATE STREET BANK WEST CLIENT TREATY 505234

2,376,062

0.54

Nomura Securities Co.,Ltd.

2,320,108

0.53

・JAL Group Sustainability Initiatives
・JAL Group Initiatives to Achieve the SDGs
WEB

The following detailed information is also
posted on the JAL corporate website.
Corporate Policy and Company Profile
・JAL Group Corporate Policy・JAL Philosophy
・Company Profile
・History

2,209,460

0.50

118,608,695

27.14

・Organizational Overview
WEB

Trading volume(Right axis)

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

Safety and Quality● Share Price and Trading Volume
Share price(Left axis)(million shares)
250

・Safety Management
・Initiatives to Create a Safe and Secure Society
・Quality Initiatives
WEB

200

3,000

150

2,000

100

About front and back covers

1,000

50

The A350, which is specially painted in green, has an image of"eco-friendly" green, which aims for sustainable growth inconsideration of the global environment. Now that the three
years of COVID-19 have passed, the JAL Group is moving
toward a sustainable future by uniting employees who are activein various fields to create relationships and connections throughthe movement of people and goods.

0
April
2019

April
2020

April
2021

April
2022

April
2023

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

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

Other Media・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/

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

4,000

0

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

Investor Relations* Shareholding ratio is calculated by subtracting 136,291 shares of treasury stock androunding to two decimal places.

（Yen）
5,000

Sustainability
・Sustainability Management
・Integrated Report/ESG Data

・Corporate Governance・Medium Term Management Plan

SSBTC CLIENT OMNIBUS ACCOUNT
Total

JAL corporate website

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/company/
https://www.jal.com/en/sustainability/
https://www.jal.com/en/investor/

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.

Voting rights
ratio
(%)

Sustainability

The Articles of Incorporation lay down the following provision concerning the

Number ofshares held
(stock)Shareholder

Growth Strategy

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)

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

* The total number of shares issued includes 136,291 shares of treasury stock.

Mitsubishi UFJ Trust and Banking Corporation● Contact

Other Media

Common stock 437,143,500 (Number of shares per unit: 100)
Number of shareholders 488,003● Shareholder Registry Administrator

Capital273,200 million yen
Employees	Consolidated Employees 36,039 people
Employees 12,969 people
Capital andPaid-in Capital	546,831 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● Number of Shares Per Unit

● Date of Record for DividendIntroduction

5. Other Data

JAL REPORT 2023
JAL Group Integrated Report
March 2023

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JAL REPORT 2023

134

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/company/
https://www.jal.com/en/sustainability/
https://www.jal.com/en/investor/