CEO Small Meeting(2023/6/27) Q&A [253 KB

CEO Small Meeting for the Financial Year 2023 Tuesday, 27th June 2023

Speakers: President, Chief Executive Officer, Yuji AKASAKA

Senior Vice President - Chief Financial Officer, Yuji SAITO

Senior Vice President - General Affairs, Noriyuki AOKI

Senior Vice President - Finance and Accounting, Masao YUMISAKI

As an opening statement, Akasaka explains the connections between "ESG Strategy" that is placed at the core of the "JAL Group Medium-Term Management Plan 2021-2025, Rolling Plan 2023", and the JAL Group's "growth strategy".

Major Q and As

1. Please explain the company's progress and efforts in the procurement of SAF(※1)

1. To achieve net zero emissions (NZE) by 2050, our goal for 2030 is to replace 10% of fuel on board with SAF. About 60% of this is planned to be achieved through procurement from America, and the remaining 40% is planned to be achieved through procurement of domestic SAF.
   We have been encouraging the Japanese government for the production of domestic SAF, and they are working to establish a production system for SAF. Therefore, the 2030 target of replacing 10% of total fuel on board with SAF is expected to be achieved.

1. Please explain the effects of SAF on revenue. Would using SAF more than your competitors and contributing to the reduction of environmental impact lead to improved preference, gain

of market share, and thereby link to revenue?

1. The purpose of using SAF is to reduce CO2 emissions, but we believe that accelerating the use of SAF will result in improved preference and competitiveness.

Q Please explain the balance between responding to CORSIA(※2) and expanding supply

1. According to CORSIA's rules, all participating airlines are responsible for offsetting the total amount of offset obligations until at least 2033. Therefore, the offsetting obligation arises regardless of the production volume of our company. Thus, the first step is to accelerate the reduction of CO2 emissions through the upgrade to fuel-efficient aircraft, reduction in daily operations, and the use of SAF. In addition, we will utilize emission trading schemes and actively coordinate with suppliers that have innovative technologies such as synthetic fuels and

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negative emissions. However, as these efforts are not achievable in the aviation industry alone, the public and private sectors will work together.

In terms of supply, we will expand our network through strategies including cooperation with partners, to simultaneously achieve environmental measures and expansion of supply.

1. What are the company's strategies in recruiting and developing human resources, in order to

achieve your ESG strategy and business strategies going forward?

1. As our human resources are centered on the Full Service Carrier business domain for many years, it is necessary to secure and develop human resources, especially for the non-aviation business. In order to accelerate this process, it is important to hire externally experienced personnel. In the Rolling Plan 2023, the goal for the ratio of hiring externally experienced personnel (including alumni) was set at 50%, in order to strengthen this plan.

※1 SAF: Sustainable Aviation Fuel

※2 CORSIA: Carbon Offsetting and Reduction Scheme for International Aviation

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