Japan Airlines (9201) Investor presentation summary

Key features of Series 1 Bond - Type Class Shares

• Classified as shares for accounting, increasing equity, but lack voting rights and conversion to common shares.

• Listed separately from common shares on the Prime Market of the Tokyo Stock Exchange.

• No equity credit from rating agencies; entire paid-in amount recognized as equity for accounting.

• Fixed dividend until March 2032, then floating with a 5% step-up; dividends are cumulative and non-participating.

• Callable for cash after June 2031 at issue price plus unpaid dividends.

Financial impact and shareholder considerations

• Limited impact on ROE and EPS for common shares; preferred dividends are senior to common shares.

• Improves financial soundness and Net D/E Ratio by increasing equity capital.

• Distribution of residual assets and dividends to bond-type class shareholders is senior but limited to set amounts.

• No dilution of common shares due to issuance.

Long-term holding benefits

• Individual holders as of March 2027 receive Life Status Points (LSPs) based on shares held continuously through three record dates.

• LSPs credited after one year, two years, and at call option exercise, with higher points for larger holdings.

• Eligibility requires continuous holding and registration on the shareholder website with a JAL Mileage Bank number.

• Benefits lost if shareholder number changes or shares are sold before record dates.

• LSPs can lead to JMB elite status and lounge coupons, subject to additional requirements.