Annual Report 2021
Fiscal 2020 (Year ended March 2021)
Maintaining a sense of crisis,
but never forgetting hope.
2 Management Message
66 Business Foundations Supporting
10 A Philosophy Inherited from Our Founder
68 Safety
72 Human Resources
12 The ANA Group Value Creation Process
76 The Power of People in the ANA Group
Corporate Value
12 ANA Group Strengths
14 The Value Creation Process
16 Timeline for Simultaneous Creation of
Social Value and Economic Value
18 What Must Change, What Must Never Change
Message from the Independent Outside Directors
78 Risk Management
80 Compliance
82 Responsible Dialogue with Stakeholders
84 Corporate Governance
98 Financial / Data Section
22 Business Strategy
24 Overview of Business Structure Reform and Fiscal 2021 Plan
32 Overview by Business
38 Special Feature: Establishing a New Platform Business
42 Sustainability Initiatives
44 ANA Group ESG Management
46
ESG Management Promotion Cycle for Simultaneous Creation of
Social Value and Economic Value
48 Dialogue with Stakeholders on ESG
50 Material Issues
Contents of This Report
The ANA Group (ANA HOLDINGS INC. and its consolidated subsidiaries) strives to create
social value and economic value, leveraging the strengths we have cultivated based on
the spirit of our founders. In so doing, we expect to generate sustainable corporate value
growth. This report presents an overall picture of the philosophy and value creation
handed down over generations. We also address our business strategies for overcoming
crises and returning to growth, as well as medium- to long-term sustainability initiatives
and the management foundation that supports these corporate activities.
Editorial Policy
The ANA Group emphasizes proactive communication with stakeholders in all of our
business activities. In Annual Report 2021, we aim to encourage a deeper comprehensive
understanding of the social value and economic value created by the ANA Group through
our management strategies, our business, and our environmental, social, and governance
(ESG) activities. Further, we have published information on the activities we selected as
being of particular importance to the ANA Group and society in general. For more details,
please visit the ANA Group corporate website in conjunction with this report.
Scope of This Report
• This report covers business activities undertaken from April 1, 2020 to March 31, 2021
(including some activities in and after April 2021).
• In this report, “the ANA Group” and “the group” refer to ANA HOLDINGS INC. and its
consolidated subsidiaries.
• “The Company” in the text refers to ANA HOLDINGS INC.
• Any use of “ANA” alone in the text refers to ALL NIPPON AIRWAYS CO., LTD.
1
Management Message
Pursuing Business Structure Reform to
rebuild as a resilient corporate group,
aiming to return to a growth trajectory
in the post-COVID-19 era.
I wish to express my deepest condolences to the people around the world who have lost loved
ones due to COVID-19. I also pray for the earliest possible recovery for all who are suffering from
COVID-19 today. In addition, I want to express my deepest gratitude to the professionals who are
working every day to prevent and control the spread of infections.
ANA Group passenger demand began to decline in the fourth quarter of fiscal 2019 due to the
impact of COVID-19. Fiscal 2020 was supposed to be a breakthrough year for the airline industry,
driven by the Tokyo 2020 Olympic and Paralympic Games and an increase in the number of visi-
tors to Japan. However, the global pandemic led to significant restrictions on social and economic
activities. As a result, the ANA Group was forced to change our growth strategies.
In my message here, I want to look back on how we came to this place, dealing with COVID-19
under my leadership. I also want to discuss what we intend to do to return to a growth trajectory
in the future.
KATANOZAKA Shinya
President & Chief Executive Officer
2
3
3
Management Message
The Impact of COVID-19 on Our Businesses
The ANA Group History of Overcoming Challenges
In January 2020, China experienced a sharp increase in the
The first measure was Business Structure Reform, which
The ANA Group has faced many crises throughout our his-
as we stated in our initial plan for the fiscal year. During the
number of people infected with COVID-19. This spread of
we formulated at the end of October 2020. The pursuit of a
tory. Numerous crises in the 21st century alone include the
recovery from the Lehman Shock, we implemented Cost
infection began to affect cross-border traffic gradually, and
group airline model is one of the main topics in our Air
terrorist attacks on the United States in 2001, the Iraq War in
Reduction Initiatives over a six-year period beginning in
in the second half of January, the ANA Group began seeing
Transportation Business. Here, we intend to change our
2003, SARS in 2003, the Lehman Shock in 2008, and the
fiscal 2011. As a result, we controlled the increase in
an impact on passenger numbers for international flights. In
service model for post-COVID-19 demand characteristics
Great East Japan Earthquake in 2011. We have also faced
expenses by a total of ¥138 billion. We improved cost com-
April, Japan declared a first state of emergency, and the
and customer needs. We will also continue to restructure
technical problems with the Boeing 787, the ANA flagship
petitiveness and pursued growth strategies focused on our
number of passengers on domestic routes declined
the group business portfolio across our entire group.
aircraft, including battery problems in 2012, and engine com-
international business, generating consolidated operating
immediately.
Reducing resources (aircraft, human resources) is an essen-
ponent issues in 2018. But we have overcome these prob-
income of ¥165 billion for fiscal 2017 and 2018.
Our first act in response was to secure cash on hand. We
tial component to achieve this restructuring, and we com-
lems through various structural reforms.
Established as the first private airline in 1952, the ANA
procured bank loans of approximately ¥530 billion in total
pleted resource reduction measures by the end of fiscal
Turning a crisis into an opportunity is a common expres-
Group has overcome numerous crises in our 69 years of
during the first half of the fiscal year, establishing a founda-
2020. We created a plan to return to profitability in fiscal
sion. But it is easier said than done. Over the years, ANA
airline business. Our culture of pulling together to overcome
tion to continue our business in a stable manner. Next, we
2021, engaging in cost reduction measures mainly dealing
Group management has established a track record of
challenges has been handed down to us from our prede-
declared our position on protecting employee health and
with fixed costs.
jobs, putting into place a complete program to deal with
COVID-19. Our employees are responsible for ensuring
P.24 Overview of Business Structure Reform and Fiscal 2021 Plan
implementing reforms in the face of challenging situations.
cessors, and this spirit is instilled in the hearts of every
These reforms have led to the growth of future generations,
employee as part of the ANA Group DNA. The section in
defining a clear vision of where we aimed to be as a com-
this report on page 10, A Philosophy Inherited from Our
safety. To ease employee concerns and distractions of
The second measure was to strengthen our financial
pany once we overcame the issue at hand. For example,
Founder, describes our focus and our mission during the
COVID-19 or news of mass layoffs among overseas airlines,
foundation. During the second half of fiscal 2020, we exe-
fiscal 2003 passenger demand was very slow due to the
COVID-19 pandemic. As the world undergoes major
we adopted measures with employees and all ANA Group
cuted a subordinated loan and a public offering of new
Iraq War and SARS. At the same time, we felt the impact of
changes, we must come back even stronger. We are cur-
stakeholders in mind.
shares to secure financial flexibility in terms of both liquidity
integration at our domestic competitors. We fought our way
rently executing our Business Structure Reform, and we
In terms of aircraft operations, we expanded cargo flight
on hand and capital. In this way, we created a management
back to profitability by reorganizing our international flight
intend to overcome these challenges, while responding
capacity significantly to meet the demand for medical prod-
environment allowing us to focus on our pursuit of Business
network and by accelerating cost reduction measures. We
agilely to the changes in customer needs and social issues.
uct and personal protective equipment (PPE) transporta-
Structure Reform. We plan to use the funds raised through
resumed dividend payments for the first time in seven years,
tion. We adopted the ANA Care Promise, outlining our new
the public offering to fund investments in aircraft required
initiatives to ensure hygiene for passengers and employees.
over the medium term to maintain and improve our global
In this way and more, we implemented numerous measures
competitive advantage.
in parallel, all while monitoring domestic and international
socioeconomic trends. We approached this process from the
P.25
Initiatives to Overcome the COVID-19 Pandemic
perspective of consistent, comprehensive risk management.
The third measure was our 2050 Environmental Targets
Rather than relying on wishful thinking, we prepared multiple
and 2030 Environmental Targets, which we published in
options in advance, implemented necessary measures pro-
April 2021. As many other organizations are responding to
actively, while anticipating the changing tides of the situation.
global climate change, the ANA Group has decided to
Despite the best efforts of our entire group, passenger
strengthen our own measures toward decarbonization. We
demand remained sluggish due to the impact of immigration
intend to resolve social issues from a global and long-term
restrictions in various countries and the multiple declara-
perspective in the post-COVID-19 era, and beyond.
tions of a state of emergency in Japan. These factors com-
bined to create a net loss in excess of ¥400 billion for fiscal
P.51
Environmental Goals and Targets
2020. Nevertheless, our efforts, including groupwide cost
Today, we live in a time in which the only corporations
reductions of ¥590 billion, allowed us to narrow net loss by
that will survive are the ones that are agile in responding to
more than ¥100 billion compared to the full-year forecast
changes in the external environment. We saw these chal-
we published on October 27, 2020.
lenges as a perfect opportunity to make changes, and we
We have also taken measures that will lead to a return to
implemented management decisions ranging far beyond the
growth in the future.
COVID-19 pandemic.
4
5
Management Message
experiences, group diversity will improve, as will the
attracting visitors to Japan again. For this to happen, we
resilience of our organization. Establishing a third brand in
must create an environment in which these airlines can
our Air Transportation Business and creating a platform
procure SAF at major airports in Japan. I am calling for SAF
business leveraging our customer data assets are two
as a major management issue, because SAF will play a role
major programs under Business Structure Reform. To this
in establishing a solid position for Japan as a tourism
end, we pursue the transformation (diversification) of our
nation. I hope to take this issue head-on in cooperation with
business portfolio as we make use of new concepts
the government and relevant agencies, as well as with the
generated by the diverse base of our human resources.
cooperation of the other domestic airline companies.
The third theme is to address environmental issues,
What these three themes have in common is our ability to
which should be understood in a framework broader than
create a future filled with hopes and dreams beyond the
simple decarbonization efforts. For example, Sustainable
framework of the interests of our group. Faced with the
Aviation Fuel (SAF) is expected to contribute to the
COVID-19 pandemic, our group has significantly limited
reduction of CO2 emissions in a significant way. Setting up a
opportunities to bring happiness to passengers and
stable procurement scheme for SAF is an urgent issue as
customers through our services. One day, we will be able to
we look to the future. Here, the ANA Group is leading the
talk about this pandemic as a thing of the past. But today,
industry and lobbying related parties to educate the industry
our generation must take responsibility to solve the issues
and create a system for mass production. Fostering mass
we face, so the next generation will not have the same
production of commercial SAF in Japan will lead to the
struggle. I believe fulfilling our mission inspired by the idea
greater development of our country as a whole. Foreign
to serve our stakeholders and to serve the future will
airlines that fly to/from Japan will be an essential part of
naturally lead to sustainable growth for the ANA Group.
Making Changes toward the Post-COVID-19 Era
What We Must Protect for the Future
Some industries in the world have grown steadily, even
services that should be performed by our staff and those that
We will continue to change in response to the changing needs of
of bereaved families. Employees discuss how to prevent acci-
during the COVID-19 pandemic. The IT industry,
should be digitized, finding the best mix that ensures our
our customers and social issues. At the same time, however,
dents and incidents, which raises our awareness of safety. As
telecommunications, pharmaceuticals, biotechnology, home
business structure is compatible with leading world trends. In
there are some things that we must never change. Things that
we build an atmosphere of mutual trust and support across
delivery, and e-commerce are such examples. These
this way, we will provide new value to society and achieve
underpin our management foundation and that we must protect
different roles within the group, we are more able to embody
industries are experiencing an expansion in business
greater productivity.
for the future. I am talking about Safety and Human Resources.
safe behavior. As the impact of COVID-19 continued through-
domains adapted to changing customer needs. Products
The second theme is to expand diversity. In the process
Safety is our promise to the public and is the foundation of
out fiscal 2020, we are devising and implementing ways for
and services in the airline industry must respond to changing
of growing our international business, we have encountered
our business. As an airline group, and as critical social infra-
trainees to participate more proactively. This includes group-
customer needs in areas such as ESG, hygiene and
many overseas cultures and business practices. Doing
structure, safety is absolutely essential. We place the highest
wide online training programs. On July 30 of this year, the
cleanliness, contactless operations, self-service,
business overseas means accepting cultures that are
priority on safety, even as times change. The ANA Group
ANA Group observed a moment of silence and renewed our
simplification, and personal customization. We identified
different from our own. What makes this possible is our
engages in a culture of safety at all times, including a culture of
commitment to safety. But a culture of safety is not built
three themes to embody as we move toward the future.
people. The airlines business is about people (i.e.,
reporting, a culture of fairness, a culture of flexibility, and a
overnight. We will continue our diligent efforts, together with
Under these themes, we intend to change the conventional
passengers and customers) primarily. The people (i.e.,
culture of learning. We will spare no investment in handing
our employees.
practices in which our group has engaged for so many years.
employees) who support this business are a key element in
down this culture of safety to the next generation.
Our pursuit of safety is not limited to aircraft operations, but
The first theme is to pursue services and business models
creating sustainable added value, and they serve as a
For example, we include details of past incidents of aircraft
extends to numerous other fields such as food safety and
compatible with the new normal. This is an important
driving force for expanding our business domains. One of
accidents, hijackings, and other unsettling events in our regular
information security. Positioning hygiene as a new value reflects
management focus looking ahead to the post-COVID-19 era.
our strengths as a group is that we have employees of
internal education and training programs at different employee
the importance of offering peace of mind to our passengers
Here, we plan to improve cost competitiveness in our Air
various age groups working around the world, representing
ranks. This year marks the 50th anniversary of the Shizukuishi
and customers. And we intend to feature hygiene as a new
Transportation Business, while we change our paradigms
a wide range of attributes, including gender, nationality, and
accident that occurred on July 30, 1971. We conduct various
component of service quality in the post-COVID-19 era as
and operational flow. For example, we want to replace
employment models. As of August 2021, the ANA Group
educational activities to keep the memory of this accident alive
quickly as possible. We will also work with related parties to
human airport operations with digital technologies where
has seconded a cumulative total of 1,200 employees to
in our company. One example is an exhibit of aircraft parts and
introduce new operating practices, including digital proof of
possible to meet the needs for self-service and personal
entities outside the group. I expect that as we gather more
passenger seats that were deformed as a result of the incident.
vaccination, to create an environment in which every passenger
customization. We will continue to scrutinize areas within our
employees representing various values based on their own
Another is having employees read the memoirs and messages
can travel between Japan and overseas with peace of mind.
6
7
Management Message
In Japan, vaccinations have been progressing rapidly over the
dialogue more than ever. Dialogue is one tool for employees to
diminished one iota. As we introduce service models
employees. I think we can say there is a light at the end of
past few months. The ANA Group was the first company in
connect with one another, sharing concerns and uncertainties
tailored to the new normal and transition to new business
the long tunnel. What lies ahead is not the old world, but a
Japan to begin vaccinating employees at work. This is the year
as we strive to overcome this crisis. During fiscal 2020, ANA
models, we will raise the value we create as the ANA Group
new world we have yet to see. We are an airline group that
in which our group will make a contribution to society by mobi-
executives held a total of 1,667 town meetings, direct dialogue
to higher levels than ever before.
has grown together with our passengers and customers,
lizing the wisdom and efforts of humankind to bring a conclu-
with employees. The management teams of group companies,
We announced our first quarter financial results for fiscal
overcoming challenges over the 69 years since our
sion to COVID-19. In so doing, we will restore safety and
including myself, spoke with a total of about 32,000 employ-
2021 on July 30, amid the ongoing impact of COVID-19.
founding. We will continue aiming for a return to growth in
security to our daily lives.
ees. We listened to concerns about the ongoing impact of the
While we felt the impact of the declaration of a state of
the post-COVID-19 era, striving to continue as the airline of
What we must also not forget, however, is our human
COVID-19 pandemic. Employees are concerned about
emergency in late April, we grew revenue in our cargo
choice by our stakeholders. As the top management of the
resources. As I mentioned in our 2020 report, as the COVID-19
deserted airport counters that once were crowded with
business and engaged in consistent cost management,
ANA Group, I am committed to carrying on the spirit of the
infection began spreading around the world in late January
passengers. Some raised questions about airport handling
narrowing operating loss by a significant margin compared
words of our founder, “Hardship Now, Yet Hope for the
2020, we operated charter flights for persons in Wuhan, China,
changes due to suspended and/or reduced flights. We endeav-
to the same period in the previous fiscal year. This result
Future.”
who wanted to return to Japan. Even before the full extent of
ored to dispel individual worries as much as possible by talking
confirms the steady progress of our internal reforms as we
I ask for your continued support of the ANA Group.
August 2021
KATANOZAKA Shinya
President & Chief Executive Officer
COVID-19 was known, a large number of our employees took
directly with employees. We share hope with them, while
build on a number of other measures. Passenger demand
the initiative to operate the flights at their own risk. This repre-
conveying our ideas in detail about overcoming the COVID-19
for domestic operations has been recovering steadily. We
sents just one typical response, and we continued our efforts
pandemic.
see more passengers at airports and in our aircraft, eyes
to overcome the COVID-19 pandemic, driven by our sense of
During the course of repeated dialogues, employees began
sparkling at the opportunity to travel after so long. I am
mission as humans engaged in the airline industry. In this
to express a variety of opinions. We collected more than 1,600
happy to see a return to the bustling activity and smiling
sense, it is no exaggeration to say that we pushed through
ideas for new initiatives in this time of crisis. Ideas included
faces of our crew, airport staff, and other frontline
fiscal 2020 supported by the power of our people. Immediately
sightseeing flights using the Airbus A380, e-commerce sales of
after the emergence of COVID-19, I declared my intent to
in-flight meals and aircraft goods, opening restaurants using
protect the jobs of our employees. The ANA Group employs
our aircraft, hosting weddings, and more. From the standpoint
46,000 people around the world—people who work diligently
of management, my only question has been, “Are we going to
on a daily basis to ensure the safety of our aircraft and opera-
do it or not?” Once decided, I provide my support with a sense
tions. I am proud of our employees who fulfill their roles in
of urgency to collect the relevant departments together. Now is
dealing with COVID-19, even as we operate under declarations
the time for us to embrace our founding spirit of Wakyo* (close
of a state of emergency in Japan.
cooperation) and gather momentum as a group to overcome
Eliminating officer bonuses and reducing pay are a natural
the COVID-19 pandemic.
response to the situation at hand. After struggling with the
decision, we also asked our employees for their cooperation
and patience in pay and bonus reductions. The understanding
and cooperation of the labor unions will be a great help in
overcoming COVID-19. Amid the ongoing hardships, we value
* Wakyo: No matter who you are, have the confidence to voice your opinions. We base
our actions on the results of thorough discussion and take decisive action as one.
Our Future Direction —My Commitment—
During the third quarter of fiscal 2020, the number of
In the year and a half since we began responding to the
people infected with COVID-19 in Japan subsided
COVID-19 pandemic, I have pondered the significance of
temporarily. At the time, we saw a rapid recovery in
the ANA Group and of our existence. In the post-COVID-19
domestic passengers, driven by the GoTo Travel Campaign.
era, some business travel will likely be replaced by online
We also received many applications for the Airbus A380
methods. But I believe the value of traveling and
sightseeing flights. We believe that demand for air travel will
experiencing a destination with one’s own five senses, of
recover rapidly in response to a trigger of some kind. Many
meeting people face-to-face, is becoming greater than ever.
customers sent messages of support, expressing their
Our group mission statement describes the wings within
desire to board a plane and travel as soon as possible. We
ourselves that we use to fulfill the hopes and dreams of an
know that customers are eager to travel by air.
interconnected world. I am convinced that this role has not
8
9
9
A Philosophy Inherited from Our Founder
“Trust and love are the
threads that weave a
beautiful world”
“Wakyo”
(Close Cooperation)
Group
Synergies
“Hardship Now,
Yet Hope for the Future”
Ambition in
Our DNA
Our Mission
in Society
A Business with Integrity
A Resolute and Independent Business
A Self-Reliant Business
Mission Statement
Built on a foundation of security and trust,
“the wings within ourselves”
help to fulfill the hopes and
dreams of an interconnected world.
ANA Group Safety Principles
Safety is our promise to the public and is the foundation of our business.
Safety is assured by an integrated management system and mutual respect.
Safety is enhanced through individual performance and dedication.
Management Vision
It is our goal to be the world’s leading airline group
in customer satisfaction and value creation.
ANA’s Way
To live up to our motto of “Anshin, Attaka, Akaruku-genki!”
(Trustworthy, Heartwarming, Energetic!), we work with:
1. Safety
We always hold safety as our utmost priority, because it is
the foundation of our business.
2. Customer Orientation
We create the highest possible value for our customers
by viewing our actions from their perspective.
3. Social Responsibility
We are committed to contributing to a better,
more sustainable society with honesty and integrity.
4. Team Spirit
We respect the diversity of our colleagues and come together
as one team by engaging in direct, sincere and honest dialogue.
5. Endeavor
We endeavor to take on any challenge in the global market through
bold initiative and innovative spirit.
10
10
11
11
ANA Group Strengths
The ANA Group is celebrating our 69th year in business. No matter how severe the environment,
we have always united in our efforts, overcoming obstacles and refining our unique strengths in
the process. We demonstrated the strengths we have cultivated, even during the COVID-19
pandemic, every element interacting and amplifying to drive our value creation.
A Spirit of Challenge,
Never-Ending Pursuit of the Best
To meet the latent needs of society and create new value, we
continue to introduce better products and services, always brave
in the face of change. During the COVID-19 pandemic, we have
been engaging in Business Structure Reform to adapt quickly to
declining passenger demand and changing customer needs. We
are striving to overcome difficulties through the spirit of endeavor
in the DNA passed down to us as we aim for a return to growth
in the post-COVID-19 era.
Pursuing the
Needs of
Our Customers
Strong Relationships
with Our Stakeholders
To fulfill our responsibilities as social and transportation infrastructure,
we maintained our passenger flight network to the greatest extent
possible, even in times of slow demand. In addition, we operated
extra cargo flights to meet the strong demand during the COVID-19
pandemic. The ANA Group supports the interchange of people,
goods, and culture, contributing to the revitalization of economy and
trade as we play an important role together with our stakeholders in
the sustainable advancement of society.
Strengths
Cultivated
Strengths That
Create Value
Comprehensive Capabilities,
Working Together to Achieve Our Goals
In January 2020, we operated charter flights from Wuhan to
Haneda for customers who had difficulty returning to Japan due
to the spread of COVID-19. Despite the real risk of infection, all
ANA Group companies worked together to bring a total of 828
customers home to Japan. We have an ingrained culture of Team
Spirit. Every department brings its own expertise and cooperates
across organizational boundaries to achieve our goals.
Obsessed with
Exceeding
Expectations
Group Quality,
Building Even Higher Levels
We endeavor to see from the customer’s point of view, aiming to
improve quality and service by ensuring safety and pursuing
on-time operations relentlessly. In response to the growing need
for hygiene and cleanliness, we are creating environments to
inspire passenger confidence in our aircraft through initiatives
such as the ANA Care Promise. As a result of our efforts, ANA
was awarded the highest rating of 5-STARS in the COVID-19
Airline Safety Rating by SKYTRAX in the UK.
12
13
The ANA Group Value Creation Process The Value Creation Process
We maximize the cycle of four strengths that drive value creation through widespread
communications of the philosophy inherited by the ANA Group, the appropriate investment and
allocation of management resources. At the same time, we maintain a solid management
foundation built on safety and human resources, etc. By executing our strategy, we will create
social value and economic value simultaneously. As we do so, we aim to improve corporate
value and contribute to the Sustainable Development Goals (SDGs).
A Spirit of Challenge,
Never-Ending Pursuit of the Best
Strong Relationships
with Our Stakeholders
Inheriting the
Spirit of Challenge
Strengths
Cultivated
Strengths That
Create Value
Comprehensive
Capabilities,
Working Together to
Achieve Our Goals
Group Quality,
Building Even Higher Levels
ANA Group Management Resources
Power of People who are willing to endeavor and challenge
Fleet and Network connecting the world
Trust of our customers and society
Limited Natural Resources shared with humankind
Financial Foundation allowing us to spread our wings
Sustainable
Corporate Value
Enhancement
Achieving Our
Management
Vision
Execute
Execute
Our Strategy
Our Strategy
P.16 Timeline for Simultaneous Creation of
Social Value and Economic Value
External Environment Analysis
Create Social
Value and
Economic Value
in Parallel
The ANA Group Approach to Value Creation
To grow with society and achieve improvements in corporate value, it is important that we pursue more than economic
value. We must also create social value as we implement our corporate strategy. We strive to stimulate new demand,
improve productivity, and control cost increases to expand operating revenues and profits. In addition, we aim to
achieve sustainable societies and increase corporate value by contributing solutions to various social issues, including
decarbonization, the respect for human rights in society, Japan as a tourism nation, and the declining workforce.
Economic value
Simultaneous Value Creation
Social value
Expand market share
Strengthen our competitive ability
Provide smart, comfortable travel
Stimulate new demand
Revitalize our regional tourism business
Improve quality and service
Foster and utilize a diverse employee base
Contribute to Japan as a
tourism nation
Promote diversity and create
societies that respect human rights
Improve convenience and productivity
Generate efficiencies and
innovation through DX
Respond to the decline in the
domestic workforce
Control increases in fuel and
other expenses
Pursue energy efficiencies
Create a decarbonized society
Management
Foundation
14
Mission Statement
Safety
Hygiene
Corporate Governance
Human Resources /
ANA’s Way
15
The ANA Group Value Creation Process
Timeline for Simultaneous Creation of
Social Value and Economic Value
For the ANA Group to continue growing together with our stakeholders, it is important that we
set appropriate goals reflecting an awareness of the time horizon for short-term initiatives (to
respond agilely to changes in the business environment and social conditions) and medium- to
long-term initiatives (steady progress toward a defined ideal state in the future). In fiscal 2020,
we formulated the Business Structure Reform initiative to show the way to a return to growth in
the post-COVID-19 era. At the same time, we formulated medium- to long-term ANA Group ESG
Commitments to clarify the vision we aim to achieve by the years 2030 and 2050. We will pursue
the creation of both social and economic value in parallel by pursuing business strategies sen-
sitive to the environment (E), society (S), and governance (G). Our approach considers a global
and long-term perspective that transcends the boundaries of our group.
Understanding of the
Short-Term Environment
2021
• New normal
• Change in airline market
demand structure
Create
Social Value
and Economic Value
in Parallel
I n i t i a t i v e s
S h o r t - Te r m
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Material Issues (P.44)
Business Structure Reform
Environment
Human Rights
Regional
Revitalization
Diversity and
Inclusion
Reduce resources
(aircraft, human resources)
Pursue a group airline model
compatible with the
new normal
Expand non-airline revenues by
utilizing customer data, etc.
A
N
A
G
r
o
u
p
C
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p
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t
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y
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x
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g
t
h
e
N
e
x
t
Operating Risks
External Environment
Internal Environment
(1) International developments (geopolitical risk,
environmental regulations)
(2) Economic downturns
(3) Government air transportation policies
(4) Fluctuations in crude oil prices and
exchange rates
(5) Infectious diseases and large-scale disasters
(1) Corporate strategy
(2) Aviation safety
(3) IT system failure, cyberattacks,
information leaks
(4) Profit structure
(5) Finances
Understanding the
Medium- to
Long-Term Environment
• Economic growth in Asia/Pacific
• Changes in the social structure of Japan
and the world
• Technological evolution
• Climate change and resource shortages
• Recurring pandemics
t o L o n g - T e r m
M e d i u m -
i v e s
i a t
I n i
t
2030
2050
ESG Management
E
• Reduce CO2 emissions
• Reduce resource waste ratio
• Reduce food waste ratio
• Conserve biodiversity
• Respect human rights
• Engage in responsible procurement
• Innovate to resolve social issues
• Support regional revitalization
• Respond to the diversity of our
customers
• Develop human resources for
sustainable growth
• Strengthen governance structures
S
G
i
i
i
A
c
h
e
v
n
g
M
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d
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-
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m
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n
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L
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-
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r
m
G
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s
l
16
17
The ANA Group Value Creation Process
The ANA Group Value Creation Process
What Must Change, What Must Never Change
Message from the Independent Outside Directors
Remaining committed to the absolute mission of Safety,
while nurturing business through new concepts
and an eye to the changes of the next generation
YAMAMOTO Ado
Independent Outside Director
COVID-19 has had a major impact on the ANA Group. But
Business Structure Reform will require brand new con-
I commend the group on the agile implementation of a
cepts. The core of the ANA Group is the Air Transportation
number of key measures including controlling capacity to
Business. The group develops Travel Services, Trade and
meet demand, emergency cost reductions, and securing
Retail, and other companies around this core, but the
cash on hand in a flexible manner. Even in a rapidly chang-
COVID-19 pandemic has exposed the high degree of risk in
ing external environment that requires nimble management
the linkage with air transportation. In the recent past, ANA X
decisions in all aspect of business, we in the transportation
Inc. and ANA NEO, Inc. have engaged in ambitious efforts
industry know that we must commit to Safety at all costs.
to create new businesses. And the group should consider
To ensure Safety, we must have a safety-focused mindset
more non-air businesses that generate profits, looking to
at all times. In addition to regular checks, special campaigns
the coming changes of the next generation.
and other educational activities are effective in this respect.
The ANA Group is making steady progress in preparing
Moving forward, it will be important to utilize AI and IoT to
for the post-COVID-19 era, setting targets for resource
create deeper systems that detect hazards in advance. For
reductions as of the end of fiscal 2020. But management
example, such systems will be able to sense a small event
must show a certain level of preparedness, having taken
occurring in an aircraft engine, extrapolating likely risks and
measures related to personnel expenses and having asked
allowing for appropriate measures in advance. In this and
employees to cooperate in terms of compensation pack-
other ways, I expect technological innovation will raise
ages. I worked tirelessly toward restructuring between my
safety to new heights.
time serving as director in charge of human resources and
Environmental initiatives are another extremely important
president at Nagoya Railroad Co., Ltd. At the time, I took
issue for the airline industry. The ANA Group set a goal to
the opportunity to speak with as many employees as pos-
reduce CO2 emissions to net zero by fiscal 2050. We recog-
sible, carefully explaining in my own words the current situ-
nize that this is a very high hurdle. In addition to the intro-
ation and management policies. The ANA Group is taking a
duction of fuel-efficient aircraft and Sustainable Aviation
proactive stance in holding town meetings under the leader-
Fuel (SAF), it is important to think flexibly and actively seek
ship of top management. I expect that these dialogues will
new technologies. Hydrogen engines, fuel cells, and other
deepen an understanding related to management policies,
next-generation power sources could be used on domestic
helping employees find hope and align in the same direction
routes, for example. The environment is a global issue, so
to overcome this crisis.
we must engage with governments, industries, and other
companies if we are to achieve our goals.
The ANA Group pursues Business Structure Reform in response to the
changes in our environment, aiming to achieve a steady return to
growth in the post-COVID-19 era. We asked outside directors
Mr. YAMAMOTO Ado, Ms. KOBAYASHI Izumi, and Mr. KATSU Eijiro for
their opinions on what the ANA Group should change boldly, without
being bound by convention, and what the ANA Group should never
change, even in this time of reform.
18
19
The ANA Group Value Creation Process What Must Change, What Must Never Change
Message from the Independent Outside Directors
To be an organization in which every individual
demonstrates a sense of ownership in shaping the
future, inheriting the philosophy and values handed
down from earlier generations
KOBAYASHI Izumi
Independent Outside Director
In January 2020, ANA operated a charter flight for passengers
Now, these employees must be brave and seek out challenging
wishing to return home to Japan from Wuhan. When the
environments, experiencing successes while solving problems
actual situation of COVID-19 was still unclear, ANA made the
within their scope of authority. The group must change its per-
commendable choice to benefit society, despite an awareness
sonnel systems and on-the-job mentorships in a flexible
of the risks. The ability to take immediate action in hygiene
manner to allow every employee to work with a sense of own-
measures and financing showed the strengths of the group.
ership and the determination to rebuild the company. Creating a
At the same time, I believe the group could have taken even
wider range of opportunities for free dialogue with upper man-
more effective action by examining potential future develop-
agement could be effective, as well.
ments in greater depth. If the group imagined the impact of
The board of directors is also placing more importance on
major cancellations and passenger flight reductions on the air
internal dialogues, visiting the front lines more often than
cargo market, it perhaps could have maximized cargo busi-
ever before. The group can strengthen governance further by
ness capacity more quickly and decisively.
gathering information from a wide variety of sources beyond
The airline industry is at a major turning point. To date, the
what is shared in board of director meetings. In so doing,
group focused on expanding business. Going forward, the
the group will gain a better understanding of the front lines
group must rebuild its portfolio as quickly as possible. The
and stakeholder expectations, applying this information in
group should not ever change the philosophy that has been
management.
Creating an environment in which
every employee has a sense of purpose and
all work toward the same goal
KATSU Eijiro
Independent Outside Director
handed down since its founding and the values it has cher-
As individual values are changing dramatically, the pursuit of
When I was appointed outside director a year ago, the
I hope every employee maintains the pride of being a
ished. But this is an opportunity to discuss in detail, without
diversity has become even more important. This is a topic that
COVID-19 pandemic was just emerging. Although the situa-
member of a global top-tier airline group that has a rich
being tied to the past, what businesses truly utilize the
is attracting much attention from society. There is still room for
tion was extremely difficult, I appreciated the strong leader-
history of approximately 70 years. This pride will lead to
strengths of the group, and what sort of value the group can
improvement, not only with regard to women, but also with
ship of top management, who continued to share corporate
personal growth and self-actualization, as each person
provide to society and stakeholders. In this way, I believe the
regard to the number of outside directors and diversity among
messages to employees. Informing employees of targets,
maintains a high level of awareness, working while thinking
group can discover its ideal portfolio.
internal directors. Rather than superficial measures to adjust
clarifying specific measures, and inspiring hope during dif-
about the meaning of the company and how they contribute
To overcome the crisis that lies ahead and survive the next
numbers, I believe the group must consider the essence of
ficult times is an extremely meaningful approach in terms of
to the world, their country, their organizations, and society.
generation, the ANA Group must find human resources who
the demands of Japan’s Corporate Governance Code, seek-
maintaining motivation.
There is something that I always say to the employees in my
take the responsibility to solve problems. The employees who
ing deeper discussions and taking into account objective
The COVID-19 pandemic has caused a shift in personal
company. I tell them, “You spend hours of your precious
joined the group after the business had become relatively stable
perspectives from third-party evaluations and other sources.
values. I believe needs for airline services will polarize in the
time in your organizations every day. How you spend that
have come up under the protection of a large organization.
future. Some customers will continue to expect the same
time will make all the difference in the rest of your life.”
5-Star level of service quality, while others may demand
Dialogue is important to enhance and sustain motivation
contactless and self-service options. Even when offering the
for employees. The ANA Group conducts frequent town
latter options, it shouldn’t allow airlines to sacrifice service
meetings between executives and employees, and the
quality. The group must carefully examine and determine
group should continue to be active in this respect. Of
what the customer wants.
course, management must gain an understanding of the
Some say that the group should speed up the process of
front lines through dialogue. But now that the external envi-
dealing with these issues. Of course, the group can embark
ronment is changing so drastically, it is also important to
on digitalization and other measures as soon as possible,
create an environment in which employees have their own
and many other measures also require speed. However, we
clear goals, established based on an understanding and
are in the midst of ongoing change, and I do not believe
clear communication of management policy, aligning every
there is a need to rush to conclusions about changing cus-
employee in the same direction.
tomer preferences and the future. The ANA Group must
engage in deeper discussions about what to maintain and
what to change in the future, including universal themes.
20
2121
The ANA Group Value Creation Process
Business Strategy
The environment surrounding the ANA Group is
going through major changes due to COVID-19.
We are continuing with Business Structure Reform
steadily to return to growth and become a
resilient corporate group capable of
withstanding future pandemics.
THE WEDDING with ANA:
In-Flight Wedding
THE WEDDING with ANA is an ANA Group original
wedding package in a time when overseas wed-
dings are difficult to perform.
We helped create once-in-a-lifetime memories at
airports and inside our aircraft cabin space, the
closest most can come to overseas travel at
this time.
P.76
The Power of People in the ANA Group
22
22
23
Overview of Business Structure Reform and Fiscal 2021 Plan
For the most up-to-date information, please refer to the following website:
Financial Results Presentation Materials: https://www.ana.co.jp/group/en/investors/irdata/supplement/
Business Environment Surrounding the ANA Group
Initiatives to Overcome the COVID-19 Pandemic
The impact of COVID-19 has resulted in major changes to the
The group believes it necessary to adjust our resources,
environment surrounding the airline industry.
mainly aircraft and human resources, and to transform our
Although passenger demand declined significantly on a
service and business models to respond to these changes in
temporary basis, we expect to see a gradual recovery to
air travel demand.
pre-COVID-19 levels over the medium term as vaccines
If we are to respond to the risk of a significant and
become more widely available and the pace of globalization
prolonged slowdown in air travel demand, we must transition
continues to progress.
to a resilient business structure, revising our cost structure,
Passenger segments will be affected, as we expect to see a
which consists of a high ratio of fixed costs, and the current
contraction in the ratio of high-unit-price demand, mainly
group profit structure, which relies heavily on the Air
business travel, and an increase in the ratio of relatively low-
Transportation Business.
unit-price demand, including leisure and VFR*. At the same
In this section, we will provide an overview of our Business
time, passenger and customer needs for hygiene, non-
Structure Reform, which we created at the end of October
contact services, and simplification are rising.
2020, and our plan for fiscal 2021.
1
The COVID-19 Pandemic Has Caused Changes in Society and the Attitudes and Behaviors of People
(Impact on Airline Demand)
Short term (With-COVID-19)
Medium term (Post-COVID-19)
Number of passengers
(quantitative change)
Decrease in passenger demand
Recovery to pre-COVID-19 levels
Passenger segments
(qualitative change)
Recovery driven by leisure and
VFR demand
Decrease in business travel demand
Structural change in the composition of
our customer base
Leisure and VFR
Business travel
Increase
Decrease
Throughout fiscal 2020, the group worked swiftly and smartly on a variety of initiatives to overcome the
COVID-19 pandemic in terms of our business and our financial performance.
Theme
Emergency response measures
Steady implementation of Business Structure Reform
(formulated on October 27, 2020)
FY2020
FY2021
Match capacity to demand trends / optimize employee utilization and services
Comprehensive hygiene measures ANA Care Promise
1) Reduce resources (aircraft, human resources)
Business Structure
Reform:
Three Pillars
2) Transform the business model
of Air Transportation Business
Accelerate
transformation
3) Utilize customer data assets
Cost reductions / control capital expenditures
Finance
Ensure liquidity on hand
Strengthen financial
platform
(public offering)
Debt from indirect financing
(subordinated loans)
Maintain and
strengthen
financial flexibility
* VFR: Visiting Friends and Relatives
Business
ANA Group Response
Must Change Service and Business Models for the New Normal
Business Structure Reform: Three Pillars
2
Significant and Prolonged Slowdown in Air Travel Demand Due to Travel Restrictions
Significant and prolonged
weakness in air travel
demand
Group profit structure dependent on the
Air Transportation Business
High fixed cost ratio
Direct link to decrease in
group profit
ANA Group Response
Must Transform into a Resilient Business Structure Capable of
Withstanding Future Pandemics
Short-term
Medium-term
(1) Temporarily reduce scale of the Air Transportation Business, mainly in the ANA Brand,
to overcome the COVID-19 pandemic
(2) Transform the business model of our Air Transportation Business for sustainable growth under
the new normal of the post-COVID-19 era
(3) Establish a platform business that utilizes customer data assets to create new revenue opportunities
During the first half of fiscal 2020, we focused on emergency
Business Structure Reform at the end of October, pursuing
response measures in our businesses, matching capacity to
initiatives focused on three pillars for the group to survive and
demand trends, optimizing personnel assignments and ser-
return to growth, even should the COVID-19 pandemic con-
vices, etc. Also, we introduced comprehensive hygiene mea-
tinue for an extended period of time.
sures under the banner of the ANA Care Promise.
In addition, we accelerated our transformation by maintain-
In terms of finances, we engaged in cost reduction mea-
ing and strengthening financial flexibility through indirect
sures, curbed capital expenditures, and, quite early on,
financing and a public offering, looking forward to the post-
secured enough liquidity on hand for the time being.
COVID-19 era.
During the second half of fiscal 2020, we formulated our
24
25
Business Strategy
Overview of Business Structure Reform and Fiscal 2021 Plan
For the most up-to-date information, please refer to the following website:
Financial Results Presentation Materials: https://www.ana.co.jp/group/en/investors/irdata/supplement/
Progress in Business Structural Reform
Theme1
Short term
Temporarily reduce scale of the Air Transportation Business,
mainly in the ANA Brand, to overcome the COVID-19 pandemic
Theme2
Short and
Medium term
Transform the business model of our
Air Transportation Business for sustainable growth
under the new normal of the post-COVID-19 era
1. Aircraft
2. Human Resources
1) Accelerated retirements, mainly of wide-body aircraft
1) Reduce the number of group employees
(FY2020)
a. Natural decrease due to retirement, etc.
2) Postpone the planned aircraft delivery schedule
b. Voluntary retirement offering (FY2020)
No. of Aircraft
Reduce by
approximately
25 aircraft
(vs. end of FY2019)
c. Curb new hiring (FY2021-FY2022)
2) Review benefits
Wide-Body
(included No.)
303
59
274*
36
271
275-
280
No. of Group Employees
Reduce by
approximately 4,000
(vs. end of FY2020)
269
241
236
Approx.
240
Reduce number of
wide-body aircraft
significantly
34
33
35
35-40
End of FY2019
End of FY2020
End of FY2021
(Plan)
End of FY2022
(Plan)
46,580
Approx.
44,000
Approx.
42,500
End of FY2020
End of FY2021
(Forecast)
End of FY2022
(Forecast)
* Excluding aircraft retired prior to the
end of FY2020
FY2020
Complete a resource
reduction measures
FY2021 and beyond
Deepen fixed cost control
Improve unit cost steadily
Maintain appeal to high-unit-price markets
Expand target markets
Brand positioning
Price/service quality
1) Optimize supply–demand balance
Expand route network through careful selection
2) Transition to new business and service models
[Themes] ESG, hygiene and cleanliness, universal services,
A shrinking high-unit-price market
self-service, personalization
3) Streamline through digitalization, etc.
New
Third Brand
Cover the growth markets of Asia/Oceania
1) Utilize existing resources and expertise effectively
Prepare to begin operations in late FY2022 or early FY2023
2) Conduct business more flexibly and at reduced costs
Maintain appeal
Expand target markets
Cultivate demand for low-cost and simplified operations
1) Attract new passenger segments (business demand, etc.)
2) Expand domestic routes, mainly at major metropolitan airports
Expand to Chubu Airport
3) Accelerate collaborations with ANA
(code-sharing, route/flight frequency adjustments)
Develop
demand
Cover growing
markets
Third Brand
Maximize demand coverage across the group
Pursue an optimal Air Transportation Business portfolio
Expand base of demand
Flight distance
We accelerated aircraft retirements, mainly of wide-body
over the next two years. We will accomplish this by restricting
The ANA brand will maintain its appeal to the higher-priced
Peach will target domestic and neighboring Asian markets
aircraft, during fiscal 2020, reducing the total number to 274
new hiring and other measures to reduce the scale of our
market, while capturing a wider range of non-business
to cultivate demand for low-cost and simplified operations.
in the group as of the end of fiscal year (operating basis).
business temporarily.
passenger segments, which we expect to grow in the future.
In addition to capturing new passenger segments (e.g.,
We have already made arrangements with manufacturers to
While we protect the jobs of our group employees, we will
At the same time, we will shift to new business and service
business demand), Peach will expand domestic routes, mainly
postpone the delivery of aircraft. Even with these measures,
also reduce personnel expenses by revising compensation
models to adapt to the new normal, pursuing labor savings
to major metropolitan airports. We will also accelerate
we intend to respond in a flexible manner according to
packages.
and streamlining through the use of digital technologies.
collaborations between our full service carrier and LCCs,
demand trends.
Having taken these measures throughout fiscal 2020, we
The newly established third brand will tap into growth
which include the launch of code-sharing with ANA beginning
In terms of human resources, we plan to conduct a reduc-
completed resource reduction measures. We will deepen cost
markets such as Asia and Oceania, targeting demand for
August 2021.
tion in force by approximately 4,000 employees groupwide
control mainly in fixed costs and improve unit cost steadily.
inbound flights to Japan. Air Japan Co., Ltd. will serve as the
As each company engages in transformation, we will
umbrella entity under which we prepare and allocate existing
pursue an optimal Air Transportation Business portfolio by
resources and expertise, aiming to commence operations in
maximizing group coverage of demand. We accomplish this
the second half of fiscal 2022 or the first half of fiscal 2023.
through the optimal positioning of each brand and stronger
This brand will focus on mid-range international flights by
marketing collaborations.
reducing costs and offering reasonable fares.
26
27
Business Strategy
Overview of Business Structure Reform and Fiscal 2021 Plan
For the most up-to-date information, please refer to the following website:
Financial Results Presentation Materials: https://www.ana.co.jp/group/en/investors/irdata/supplement/
Progress in Business Structural Reform
Passenger Demand Forecast
Theme3
Medium term
Establish a platform business that utilizes customer data assets
to create new revenue opportunities
P.38 Special Feature: Establishing a New Platform Business
1. Purpose
Create new revenue opportunities by utilizing
customer data accumulated so far
2. Action
April 2021 reorganization of group companies
(1) Provide value beyond the airline business
(2) Maximize customer lifetime value
ANA X Inc.
Platform Business
Company
We have made the following assumptions in our forecast of future passenger demand.
When we began formulating our fiscal 2021 plan, we assumed
restrictions some time by the end of the year.
demand for domestic routes would recover beginning in the
We assume that average demand for fiscal 2021 will be 30%
second quarter of fiscal 2021.
of pre-COVID-19 levels, with year-end demand at 50%, and a
Our assumption was based on the belief that we would see a
recovery to pre-COVID-19 levels at the end of fiscal 2023.
gradual recovery in demand for travel and ancestral home trips
Domestic passenger results were short of our initial plan for
that would become more pronounced as vaccinations progress.
the first quarter due to the impact of state of emergency decla-
Based on our plan assumptions, we expect to see an aver-
rations between April 25 and June 20. However, we kept bot-
age fiscal 2021 demand recover to 80% of the pre-COVID-19
tom-line impact to a minimum by adjusting capacity to curb
levels, returning generally to pre-COVID-19 levels at the end of
variable costs and by experiencing higher revenues in the solid-
the fiscal year.
performing cargo business.
On the other hand, we expect passenger demand for inter-
Going forward, we will continue to monitor demand trends
national routes to recovery in stages, driven mainly by business
and implement necessary measures on a flexible and timely
travel and traffic associated with expatriates, long-term stays as
basis, including adjusting aircraft and human resources.
the major countries of the world begin to relax immigration
FY2021 Plan Assumptions (Announced on April 30, 2021)
Advertisements
Recommendations
Campaigns
Airline business
Third brand
Regional revitalization
business
(regional trading companies)
Travel Services
FFP
Points
Credit card
New businesses
New customer
database
Product sales
Lifestyle Goods
Regional Network
Shared Travels
Car rental
Families /
Partners
Education
Infrastructure
Shopping
Investing
Digital contents
Beauty and
healthcare
Dining
Travel
Loans
Credit cards
Integration
Travel Services
FY2021 1H
FY2021 2H
FY2022 and beyond
External
environment
(Assumptions)
Concerns about the
spread of COVID-19
Steady progress in vaccinations
Major countries start to ease travel restrictions
Gradual easing of travel
restrictions globally
ANA Sales Co., Ltd.
Company Split
Assumptions regarding
passenger demand
Recovery in demand to pre-COVID-19
demand levels
Airline Sales Business
Regional Revitalization
Company
ANA Akindo Co., Ltd.
Domestic
Recovery beginning in 2Q
(mainly leisure and VFR*)
Recovery to 90% of
pre-COVID-19 levels
End of
FY2021
International
Sluggish demand continues,
but signs of recovery
beginning in 2Q
Recovery trend continues
End of
FY2023
* VFR: Visiting Friends and Relatives
In April 2021, we integrated the Travel Service of ANA Sales
develop a regional revitalization business by discovering
Co., Ltd., launching ANA X Inc. as a platform business com-
attractive regional products, both tangible and intangible,
pany. Utilizing customer data accumulated by the group and
developing these products for use on the platform.
digital touch points such as the ANA Mileage Club app, we
Over the medium term, we plan to expand our lineup of
intend to establish a platform business built around the Air
offerings through credit card and mileage businesses, e-com-
Transportation Business, Travel Services, and ANA Credit
merce, real estate, and other services, as well as through
Card business, which processes more than ¥4 trillion in trans-
B-to-B alliances with other companies.
actions yearly.
In this way, we will provide value that goes beyond the
In addition to digitizing the Travel Services and guiding
airline business and pursue maximum customer lifetime value,
customers to our new platform, we intend to streamline the air
expanding non-airline revenues and contributing to earnings
ticket and travel sales operations of our airline sales business.
as an independent business.
Meanwhile, the newly established ANA Akindo Co., Ltd. will
[Index] Demand level before COVID-19 (CY2019 results) =100
Domestic Passenger
100
International Passenger
90
75
50
25
0
45
5
1Q
85
20
2Q
95
100
100
85
[Domestic] FY2021 Average: 80
45
50
50
[International] FY2021 Average: 30
1) Figures in this graph represent ANA Brand only
(not including Peach, Third Brand)
2) Comparison with the number of
pre-COVID-19 passengers (Jan-Dec 2019 results)
3Q
4Q
End of FY2021
End of FY2022
End of FY2023
Quarterly Average in FY2021
28
29
Business Strategy
Overview of Business Structure Reform and Fiscal 2021 Plan
For the most up-to-date information, please refer to the following website:
Financial Results Presentation Materials: https://www.ana.co.jp/group/en/investors/irdata/supplement/
Cost Management
Present Measures Anticipating a Return to Growth
Responding immediately after experiencing the impact of the outbreak of COVID-19, we have imple-
mented cost management initiatives on a consistent and comprehensive basis.
We are aiming to return to growth in the post-COVID-19 era, while we seek to achieve medium- to long-
term environmental goals through decarbonization initiatives.
During fiscal 2020, we reduced costs by ¥590.0 billion in total
and employment, operating cost reductions, and reforms in
In fiscal 2020, we sought to restructure the Air Transportation
beyond as we engage in transforming our business model,
compared with fiscal 2019.
procurement costs, among other initiatives. First quarter
Business through Business Structure Reform. While economic
restructuring the group business portfolio, and expanding
First, we curbed variable costs drastically by adjusting
results outperformed our plan, and we intend to continue with
conditions changed dramatically, we implemented measures
non-air revenues.
capacity to match passenger demand. In terms of fixed costs,
consistent and comprehensive cost management, including
in business and finance.
We will also strive to reform our cost structure through fixed
we reviewed salaries and bonuses based on an agreement
the control of variable costs linked to capacity.
In fiscal 2021, we plan to stabilize our business by achieving
cost reductions and by converting fixed costs to variable
with the labor union. We looked at every expense to make
Over the medium term, our policy will be to recover capac-
profitability. Our first order of business is to shift to a group
costs, engaging in these and other measures to transform
emergency reductions.
ity as we control the increase in personnel through improved
airline model that is compatible with the new normal, improv-
ourselves into a resilient corporate group capable of with-
For fiscal 2021, we have incorporated measures into our plan
productivity and efficiency to reduce unit cost. Here, we plan
ing the profitability of our mainstay Air Transportation Business.
standing future pandemics.
to reduce fixed costs and other expenses by ¥300 billion.
to leverage digital technologies for labor savings and automa-
At the same time, we look ahead to the next fiscal year and
In addition to reductions and exemptions in taxes and
tion, among other measures. We will also pursue cost struc-
public dues and reducing the number of aircraft in our fleet,
ture with greater resistance to risk by converting fixed costs
we are engaging in more extensive measures related to wages
into variable costs through the use of external resources.
1
Cost Reduction Impact*1
2
Direction of Cost Management
over the Medium Term
FY2020 Results
Major Initiatives
1) Controlled capacity flexibly
¥418.0 Bn
2) Reduced officer remuneration and
employee salaries
1) Continue fixed cost reduction measures
adopted under the COVID-19 pandemic
as long as possible
2) Use digital technologies for labor savings
3) Reduced bonuses and performance-
and automation
¥172.0 Bn
linked payments
3) Utilize external resources
Variable
Costs
Fixed
Costs*2
Total
¥590.0 Bn
4) Adopted temporary leave program
5) Implemented emergency cost reduc-
tion measures
1) Reduce unit cost by recovering capacity,
while limiting the increase in the number
of personnel
2) Pursue a cost structure with greater
resistance to risk by converting fixed
costs into variable costs
Variable
Costs
Fixed
Costs*2
FY2021 Plan
Major Initiatives
Operation-Linked
1) Control flexibly in response to
demand trends
¥300.0 Bn
2) Exemptions from taxes and public fees
(landing/navigation fees, fuel taxes)
3) Effect due to the reduction of the
number of owned aircraft (deprecia-
tion and amortization, maintenance)
4) Develop measures related to wages
and employment (personnel)
5) Reduce operation costs (contracts,
maintenance, etc.)
6) Reduce procurement costs and
facility-related expenses
7) Continue and delve deeper the
emergency cost measures
*1 All figures compared to FY2019 results
*2 Includes Employment Adjustment Subsidy
30
Become a resilient
corporate group
capable of withstanding
future pandemics
10) Initiatives for decarbonization
P.52
Pursue medium- to long-term
environmental goals
3
Transform
Business Model
8) Begin Third Brand flight operations
9) Monetize platform business
Restructure
group business portfolio
Grow non-air revenues
Fiscal 2021
4) Switch to new business and service models
5) Strengthen cooperation (ANA and Peach)
2
Achieve Profitability
6) Secure customers
(credit card and mileage business)
7) Restructure group businesses
Fiscal 2020
Pursue a group airline model
compatible with the
new normal
1
Pursue Business
Structure Reform
1) Reduce resources (aircraft, human resources)
2) Deepen fixed cost control
3) Maintain and strengthen financial flexibility
Restructure Air Transportation
Business to achieve balance of
revenues and expenses
31
Business Strategy
Business Strategy
Air Transportation Business
We will overcome the
COVID-19 crisis and
build a foundation for
sustainable growth.
HIRAKO Yuji
Member of the Board of Directors
ANA HOLDINGS INC.
President & Chief Executive Officer
ALL NIPPON AIRWAYS CO., LTD.
Our dual missions for fiscal 2021 are to pursue every rev-
enue opportunity and to redesign our investment and cost
structures to establish a foundation for renewed growth.
Based on these missions, we will respond appropriately to
the ongoing COVID-19 crisis and transform our business
structure for the post-COVID-19 era.
We expect passenger demand to recover gradually as
vaccinations progress in Japan and overseas. We also
intend to adjust capacity in a flexible and agile manner and
maximize overall revenue, including cargo revenue, for
which demand remains strong. At the same time, we will
strive to reduce fixed costs further through measures that
include reviewing our operational systems and reforming
procurement costs. In addition, we will accelerate produc-
tivity improvements through operational efficiencies based
on the adoption of digital technologies to reduce our
workforce and save labor, as well as to accomplish work-
style reform.
We intend to review and adapt our services to the chang-
ing needs of our customers caused by COVID-19. The ANA
Care Promise is the foundation of our hygiene and cleanli-
ness initiatives to ensure confident air travel. In light of this
digital age, we will also pursue more opportunities for cus-
tomer self-service and personalization. Our commitment is
to evolve into an airline that places greater emphasis on the
environment and universal services toward creating sustain-
able societies.
Since assuming the position of president in fiscal 2017,
my focus has been on strengthening our frontline capabili-
ties, and with the ongoing impact of COVID-19, we have
been increasing opportunities for dialogue between man-
agement and employees more than ever. Ideas such as
charter flights on the Airbus A380 ANA FLYING HONU and
ANA’s Restaurant HANEDA using international aircraft as a
dining experience were born from these dialogues. And we
will continue to build a foundation for sustainable growth by
increasing our capacity for unified action through ongoing
dialogues with our employees who support the front lines.
We marked record-high revenues in international cargo during fiscal 2020, despite the significant impact of COVID-19
on passenger demand. As a result, Air Transportation Business operating revenues amounted to ¥604.0 billion, a
decrease of 65.2% year on year, while operating loss amounted to ¥447.8 billion, compared with operating income of
¥49.5 billion in the previous fiscal year. During fiscal 2021, we intend to capture the recovery in demand while adjusting
capacity flexibly to maximize revenue.
ANA International Passenger Business
Resuming flights in stages while monitoring the latest conditions related to entry restrictions and
cargo demand around the world
ANA International Passenger Business Results
Revenues
ASK
RPK
(Index) Fiscal 2016 = 100
125
100
75
50
25
0
2016
2017
2018
2019
2020
(FY)
24
9
6
Fiscal 2020 in Review
We suspended or reduced flights on a large scale in response
to slow demand caused by entry restrictions, as countries
around the world fought the spread of COVID-19.
We exercised selectivity in choosing routes to continue and
operated temporary flights based on our assessments of travel
restrictions and demand trends throughout our route network.
In December, we became the first Japanese airline to introduce
a Narita–Shenzhen route. We also began service between
Haneda–San Francisco. These new routes reflect our expecta-
tions for certain demand, mainly in cargo transportation.
In terms of sales and services, we endeavored to capture
demand related to overseas assignments, citizens returning
home, study abroad, etc. In January, we launched a new Safe
Homecoming Service website to help passengers arrange for
hotels and transportation under the activity restrictions imposed
upon their return to Japan.
As a result, international route passengers amounted to 0.42
million, a decrease of 95.5% year on year. Operating revenues
were 92.7% lower at ¥44.7 billion.
Fiscal 2021 Business Policies
While entry restrictions will continue in various countries, we
intend to control variable costs by contracting the scale of our
operations. However, we will introduce flights in a flexible
manner based on an assessment of profitability, including cargo
Launch of Haneda–San Francisco Service
demand considerations. At the same time, we will monitor
vaccination trends and number of infections in the countries we
serve. As policies emerge to ease entry and general restric-
tions, we will restore capacity appropriately.
Digital Certificates Aid in Safe Travel
In March 2021, we began testing Common Pass, a technology promoted by the Commons
Project. In May, we began tests of the IATA Travel Pass, developed by the International Air
Transport Association (IATA). These digital certificates provide proof of COVID-19 test results
and vaccinations. Showing the app screen to an immigration officer upon entry or exit allows
for smooth, contactless processing, while the app also provides the latest information
regarding entry requirements and quarantine standards. We believe the practical implemen-
tation of digital certificates will create systems that facilitate traveler confidence during cross-
border travel.
32
33
Air Transportation Business
ANA Domestic Passenger Business
ANA Cargo and Mail Business
Strengthening our revenue platform by resuming capacity in line with vaccinations and the
resulting increase in travel
Maximizing profits by increasing transport capacity, while monitoring the balance between supply
and demand
Fiscal 2020 in Review
After the lifting of the state of emergency declaration in May,
demand began to recover, partly due to the effects of the GoTo
Travel Campaign. However, demand took another downturn
with the reemergence of infections in December, and we
adjusted flight operations while keeping a close eye on
developments.
In terms of sales and services, we launched our Free and
Easy Changes Campaign, which allowed changes in dates and
destinations with no extra fees. We also launched our original
navigation service named Airport Access Navi that supports
Mobility as a Service (MaaS). This service provides information
to customers regarding rail, buses, taxis, etc., linked to flight
operation information. In addition, customers can make reser-
vations and pay for tickets in a single step. Through these
services and by other means, we took measures to ensure
seamless travel for passengers from start to finish.
As a result, domestic route passengers amounted to 12.66
million, a decrease of 70.5% year on year. Operating revenues
were 70.1% lower at ¥203.1 billion.
Fiscal 2021 Business Policies
Vaccinations in Japan began in February 2021. With the
increase in vaccination rates, demand has entered a recovery
phase, mainly in leisure travel. While the situation is subject to
rapidly changing trends, we intend to recover profitability as
quickly as possible by adjusting capacity in a flexible manner
(e.g., resuming flights when appropriate) and by capturing
demand proactively. In addition, we will contribute to the revital-
ization of local economies.
ANA Domestic Passenger Business Results
Revenues
ASK
RPK
(Index) Fiscal 2016 = 100
120
100
80
60
40
20
0
46
30
30
2016
2017
2018
2019
2020
(FY)
Airport Access Navi
Automated Flapper Gates at Domestic Security at Haneda Airport
In May 2021, we introduced automated gates with flappers at certain domestic security
checkpoints at Haneda Airport. By automating the formerly manual boarding pass verifica-
tion process, we are striving to meet customer needs for non-contact, non-face-to-face
interactions and greater staff work efficiency. We developed this system at low cost and with
quick turnaround (about six months) by combining image analysis technology and flapper
ANA International Cargo Business Results
Revenues
ATK
RTK
(Index) Fiscal 2016 = 100
180
175
172
78
70
2016
2017
2018
2019
2020 (FY)
150
125
100
75
50
25
0
Fiscal 2020 in Review
The emergence of COVID-19 caused suspensions and reduc-
tions in flights, as well as reduced cargo loading space on a
global basis. Our International Cargo Business saw increase in
demand for emergency supplies (masks, pharmaceuticals, etc.)
during the first quarter of the fiscal year in response to the
spread of infection. In August, we began to see a recovery in
120
demand for automobile-related components, semiconductors,
electronic devices, another mainstay commercial products. In
the international cargo market, we saw a tightening in the bal-
ance of supply and demand in the second half of the fiscal year
in particular, driven by congestion in ocean cargo transport. In
response, we maximized the use of cargo freighters, capturing
demand by increasing the number of extra cargo flights signifi-
60
0
cantly using passenger aircraft.
In terms of our route network, we expanded our freighter
network by introducing the Boeing 777F wide-body cargo
aircraft on the Narita–Frankfurt route in October and the Narita–
Bangkok route in December. In addition, we consolidated
freighter flights to Narita Airport to increase our fleet efficiency,
while at the same time we captured a wide range of demand
between Asia, China, Europe, and the United States through
Narita Airport.
As a result, international cargo volume for fiscal 2020
amounted to 655,000 tons (down 24.4% year on year), while
operating revenues amounted to a record-high ¥160.5 billion
(up 56.3%).
Boeing 777F Aircraft
Fiscal 2021 Business Policies
Amid an ongoing shortage of space for international cargo due
to the suspensions and reductions of passenger flights, we have
been expanding our freighter network. We introduced the
Boeing 777F on our Narita–Los Angeles route in April. In June
and July, we introduced the Boeing 767F on our Narita–
Hangzhou and Narita–Beijing routes, respectively. We also aim
to expand revenues further by operating extra cargo flights using
passenger aircraft as appropriate in light of demand trends.
Since February 2021, the ANA Group has been responsible
for the transport of COVID-19 vaccines manufactured by Pfizer.
We transport these vaccines under the strictest of temperature
controls to contribute to a society in which people can live with
Transporting Vaccines via Passenger Aircraft
gates, without modifying the existing host system. As behavior changes dramatically in the
peace of mind through the wider adoption of vaccines.
wake of COVID-19, we are making a strong push toward digital transformation, responding
to customer needs in a prompt and appropriate manner.
34
3535
Business Strategy
Air Transportation Business
Non-Air Business
LCC Business (Peach Aviation)
Airline Related
Strengthening efforts to recover profitability in establishing a new revenue pillar to stand next to our
Air Transportation Business
Capturing the recovering demand for leisure and VFR* through expanded domestic routes
Fiscal 2020 in Review
Peach began resuming flights in line with the recovery in pas-
senger demand following the lifting of the state of emergency
declaration in May. Peach opened 10 new domestic routes,
including the Narita–Kushiro and Narita–Miyazaki routes in
August, and the Nagoya (Chubu–Sapporo (New Chitose) and
Nagoya (Chubu)–Sendai routes in December. When demand
declined due to the spread of infections, Peach adjusted
capacity by responding flexibly and suspending operations and
reducing flights as needed.
In terms of sales and service, Peach implemented a service
allowing customers to book flight tickets and apply for a COVID-
19 test at the same time on some domestic routes, leading to
greater confidence. In February, Peach began selling the Simple
Peach Plus Fare, which allows customers to change flights and
dates. In this way, we are providing passengers with more flexible
travel options reflecting weather conditions at the origin and
destination, the status of COVID-19 infections, and other factors.
As a result, passengers amounted to 2.08 million, a decrease
of 71.4% year on year. Operating revenues were 73.1% lower
at ¥22.0 billion.
Fiscal 2021 Business Policies
For the time being, we will prioritize the allocation of manage-
ment resources to domestic routes where demand is expected
to recover as vaccinations progress. We intend to expand our
network further with a new route between Osaka (Kansai)–
Memanbetsu beginning in July. We will also increase the
number of flights on some routes to/from Osaka (Kansai) and
Narita, thereby strengthening our ability to capture demand—
leisure demand in particular—during the recovery phase.
LCC Business Results
Revenues
ASK
RPK
(Index) Fiscal 2016 = 100
150
100
50
0
45
29
26
2016
2017
2018
2019
2020
(FY)
Notes: 1. The above graph represents the combined total of Peach and Vanilla
Air results (fiscal 2016 includes Peach results before consolidation).
2. Revenues of LCC Operations include ancillary income.
Using Masks and Gloves to Combat Infections
* VFR: Visiting Friends and Relatives
Operating revenues decreased 25.8% year on year to
Airline Related Business: Operating Revenues
¥222.1 billion, while operating income decreased 79.7% to
¥3.6 billion. These decreases reflected the ongoing impact of
(¥ Billions)
fewer contracts for passenger check-in services and bag-
gage loading due to COVID-19, despite our efforts to
increase revenues, including online sales of international
route in-flight meals.
As vaccinations progress worldwide throughout fiscal
2021, we expect both Japanese and overseas airlines to
resume flights in stages. During this time, we will endeavor
to recover and strengthen profitability by focusing on con-
tracts for ground handling and other services.
Travel Services
284.3
291.0
299.4
264.4
222.1
2016
2017
2018
2019
2020
(FY)
Due to entry restrictions across numerous countries during
Travel Services: Operating Revenues
fiscal 2020, we canceled all overseas travel packages orga-
nized by the ANA Group. The GoTo Travel Campaign kick-
started domestic travel, and in the third quarter, online
(¥ Billions)
transaction volume for our dynamic packaged products out-
160.6
159.2
150.7
143.9
45.0
2016
2017
2018
2019
2020
(FY)
performed the same period in the previous fiscal year. However,
travel demand began to decline again in December due to a
reemergence of infections. As a result, Travel Services operat-
ing revenues amounted to ¥45.0 billion, down 68.7% year on
year, while operating loss amounted to ¥5.0 billion, compared
to operating income of ¥1.3 billion in the previous fiscal year.
During fiscal 2021, we intend to capture domestic travel
demand, which we expect to recover, in a steady fashion,
while we strengthen the competitiveness of our internet-
based products.
Trade and Retail
Code-Sharing and Mileage Alliance with ANA
In August 2021, ANA and Peach began code-sharing (joint operation) some routes oper-
ated by Peach. The airlines selected certain routes to/from Narita, matching the Peach
route network, as well as routes to/from Nagoya (Chubu), where Peach has recently
entered the market. In this way, we aim to expand code-share routes, while pursuing the
benefits of code-share arrangements. Customers can accumulate ANA Mileage Club miles
when booking and purchasing tickets for flights under the ANA name. Customers also
The e-commerce and other businesses of our digital mar-
Trade and Retail: Operating Revenues
keting division performed solidly throughout fiscal 2020.
However, ANA DUTY FREE SHOP and in-flight sales
declined significantly due to COVID-19. As a result, Trade
and Retail recorded operating revenues of ¥79.9 billion,
down 44.8% year on year, and an operating loss of ¥4.2
billion, compared to operating income of ¥2.9 billion in the
(¥ Billions)
136.7
143.0
150.6
144.7
79.9
have the option to convert ANA miles to Peach Points for greater convenience. This
previous fiscal year.
alliance will capitalize on the strengths and advantages of the ANA and Peach brands,
effectively leveraging the resources of both.
As vaccines progress, we expect passenger demand to
recover gradually throughout fiscal 2021, mainly for domes-
tic routes. We will strive to restore profitability in our retail
businesses, including ANA FESTA airport shops, and grow
our online sales.
2016
2017
2018
2019
2020
(FY)
36
37
Business Strategy
Business Strategy
Special Feature
Establishing a
New Platform Business
INOUE Shinichi
ANA X Inc.
President &
Chief Executive Officer
TAKAHASHI Seiichi
ANA Akindo Co., Ltd.
President &
Chief Executive Officer
One of the three pillars of the ANA Group Business Structure Reform is to establish a platform
business that utilizes customer data assets to create new revenue opportunities.
To this end, we transferred the Travel Services business of ANA Sales Co., Ltd. to ANA X Inc.
on April 1, 2021. At the same time, we changed the corporate name of ANA Sales to
ANA Akindo Co., Ltd., signaling a fresh start for the organization.
ANA X and ANA Akindo will work together as a platform business and regional revitalization
company, respectively, aiming to expand non-airline revenues for the ANA Group over the
medium term.
Business Overview
1. Travel services (planning and sales of travel products and services)
2. Airline sales promotion business
(sales of airline tickets through digital channels)
3. Life services business
• E-commerce business (A-style, Furusato Tax, Mileage Mall, etc.)
• Finance and settlements business
(ANA Pay, bank agency, insurance, etc.)
• Mileage alliances (mileage merchants, ANA Pay merchants)
4. BtoB solutions business
(services for corporate customers using the ANA marketing platform)
Business Overview
1. Utilization of projects solicited by ministries, agencies, and local
governments
2. Sales activities for ANA Group products
3. Identification, development, and sales support for locally produced
goods and materials
4. Development of new businesses
(solutions to various issues faced by communities)
5. Activities to attract people to outlying regions
(Expand flow of non-resident populations: domestic promotions,
inbound visitors; Create directly related populations: multi-location
living, workations)
6. ANA airline ticket sales, etc.
Messages from the Presidents of ANA X and ANA Akindo
ANA X Inc.
INOUE Shinichi
President & Chief Executive Officer
ANA X Inc. was established in October 2016 for the pur-
membership program that is enjoyed across a variety of
pose of strengthening ANA Group marketing capabilities.
ANA Group services, including air travel and shopping.
We have endeavored to expand revenues from external
The ANA Pay service was launched in December 2020.
sources through an ANA economic sphere model, leverag-
We plan to improve convenience further for our customers
ing the ANA customer base, the ANA brand power, and
and position ANA Pay as a general term for all ANA pay-
other assets cultivated to date.
ment services.
In April 2021, we took over the Travel Services business
Digital channels will serve as the foundation for establish-
of the former ANA Sales Co., Ltd., giving it new life under a
ing our competitive advantage. In addition to the ANA SKY
modified role. One of the major goals under Business
WEB and ANA Mileage Club app, which have a collective
Structure Reform is to create new revenue opportunities in
3.5 billion page views annually, we believe digital communi-
the non-airlines business. To achieve this goal, ANA X is
cations via email and social media will be another way in
building systems in the important digital domain.
which we demonstrate our capabilities.
As the main method in generating new revenues, we plan
Using these programs and channels, we will work with
to develop businesses that leverage the membership base
external partners to create commercial products not only
of the ANA Mileage Program and the settlements function
for the non-everyday experience of air and travel, which
of ANA Pay, making use of the great strength of miles
have been our core businesses to date, but also in the
incentives.
everyday lives of our customers. We will establish systems
ANA Mileage Club, launched in 1997, was preceded by
that allow customers to earn and use miles across a wide
the international route mileage service Program A, which
range of services. Our goal is to create a world in which
started in 1993. Today, with the support of approximately
consumers can conduct their lives via miles rewards.
37 million members, ANA Mileage Club has grown into a
Expect exciting things from ANA X in the future.
ANA Akindo Co., Ltd.
TAKAHASHI Seiichi
President & Chief Executive Officer
Taking over from the former ANA Sales Co., Ltd., ANA
ANA Group name in the near future, as recognizable as
Akindo Co., Ltd. marked a new corporate name and a fresh
many other Japanese words that have become part of the
start on April 1, 2021. While the Travel Services business
global vocabulary.
has been reorganized under ANA X Inc., regional revitaliza-
The mission of ANA Akindo is to create the future of
tion will become a new pillar of our business. Together with
Japan together with local communities, serving as the
the existing airline sales business, we will endeavor for
wings that connect local communities with the world.
business growth and company expansion.
ANA Akindo has 33 branches nationwide, and about 120
The new company name, ANA Akindo, is based on the
employees who live and work together with local communi-
concept of sampo yoshi, which means good for the seller,
ties. Our employees share the real-world concerns and
good for the buyer, and good for the world. This was the
issues of these communities, working together to find
motto of Japan’s famous Ohmi merchants of old. This cor-
solutions. This is exactly what ANA Akindo aspires to be:
porate name reflects our desire to foster relationships that
ANA Group concierges working in step with outlying
offer sustainable benefits for local communities, for our
communities.
customers, and for the ANA Group.
In response to various community issues, we plan to
Contributing to local communities in a sustainable
make full use of ANA Group solutions, including mobility,
manner and sharing benefits with stakeholders align with
logistics, e-commerce, airport shops, payment settlements,
the SDGs, ESG management, and other modern values.
and digital communication channels. With the cooperation
And while the word Akindo itself has been around for a long
of our partners, we will assist in resolving community issues
time, I believe the spirit still shines through today. I hope
and create the future together.
that the word Akindo becomes synonymous with the
38
39
Business Strategy
Special Feature
ANA X and ANA Akindo have been working together to integrate digital and real-world
resources. The companies are striving to accelerate profit growth in our platform business by
leveraging the strengths and features of the ANA Group as an airline group responsible for
mobility and logistics.
Digital
Real
ANA X is committed to creating a digital platform strategy, beginning with a focus on platform functionality and business reform.
ANA Akindo is focused on the business of regional revitalization. The company endeavors to strengthen existing programs, such
In terms of functionality, the company is developing the ANA Super app (scheduled for a launch after fiscal 2022) to offer travel
as ANA Furusato Tax Payment and workations based on the ANA Furusato Discovery Program. At the same time, the company
destination activities, dining, tourism, and other information in a single app. The company has already introduced ANA Pay to
collects information on real-world issues from concierges working and living in communities throughout Japan offering new prod-
provide payment settlement functions required in the digital market. In the future, ANA Pay will see further upgrades to conve-
ucts and services only available through an entity like ANA Akindo.
nience and usability.
As an example, when considering how to use the land of abandoned farms for business, the single largest issue is where to
In terms of business, ANA X is redesigning the travel and e-commerce businesses. The company is introducing more non-
find laborers during busy times such as the harvest season. ANA Akindo has proposed a variety of solutions using the ANA
everyday business services related to air and travel. At the same time, ANA X is adding functions for everyday services, including
airline network to cover travel and lodging expenses for volunteers, to design workations, to encourage two-location lifestyles,
real estate, finance, insurance, and more, in pursuit of the goal to create a world in which consumers can conduct their lives via
and more. With respect to commercializing agricultural products, ANA Akindo is working with ANA Cargo Inc. to create a brand
miles rewards.
called Flying OO, planning to sell farm goods in ANA FESTA airport shops. Other ideas include leveraging the strong ANA X
Furthermore, ANA X will strengthen cooperation with the regional revitalization business that ANA Akindo is building in the real
digital market to expand sales channels in Japan and overseas. ANA Akindo intends to work together with other companies to
world. We are leveraging our platform to communicate the attraction of outlying communities, offering regional products and
encourage not only the revitalization of tourism but also the revitalization of industry. In this way and others, the company will
services available exclusively through ANA e-commerce.
maximize the latent appeal of outlying regions and Japan.
The ANA Group aims to build its customer base and airline network to the greatest extent possible, forming a digital market
ANA Akindo will contribute to the creation of Japan’s future through the unique ANA Group value proposition, leveraging ties
specialized in mobility and communications. ANA X has set a target of ¥400 billion in consolidated operating revenues by fiscal
with Japan’s outlying regions built on the group’s extensive airline network.
2025 for this digital platform business.
Overall Platform Business Concept
Use digital technology to create a world in which consumers can
conduct their lives via miles rewards.
D
g
i
i
t
a
l
E
v
o
l
u
t
i
o
n
Airline
Travel
Hotels
Shopping
Car Rental
Railway/Bus
Super App
Mileage
Leisure
Entertainment
Dining
Lifestyle
Infra
Mobile
Comms
Insurance
Loans
Investment
Digital
Real-World
Digital Channels
Memberships
Airline Network
Daily Goods
Digital
Content
Branch Offices (Concierge)
Education
Digital Comms
Payments
Community
Relationships
Foreign
Exchange
Real
Estate
Post-
Retirement
Life Events
Health/Beauty
Business/
Career Change
A
u
g
m
e
n
t
R
e
a
l
W
o
r
l
d
ANA Group
Strengths
ANA X and
ANA Akindo
Structure,
Strengths
For the Future
Medium-Term Revenue Strategies
• Comprehensive and complete transportation and logistics through our international and domestic airline network
• Customer data assets of approximately 37 million mileage members
• Group companies that operate a variety of businesses and services
ANA X
• ANA Mileage Program
• Digital marketing
ANA Akindo
• Strong ties with local communities developed through
branch airline sales offices (33 branches in Japan
• Non-airline services (credit cards, payment
with approximately 120 concierges)
settlements, financial services, lifestyle services)
Strengthen platform functions
Expand the economic sphere
Use digital technology for improved convenience,
In addition to the Air Transportation Business,
as well as to encourage customer retention and travel
strengthen connections between ANA and the daily
• Develop the ANA Super app
• Expand payment settlement functions
• Pursue digitalization in Travel Services
• Redesign the e-commerce business
lives of our customers
• Expand sales of existing products and services
• Increase e-commerce merchandise offerings
• Build regional businesses
Vision
Improve engagement with customers
Increase revenues and profit by maximizing customer lifetime value
40
41
Business StrategyCustomers
Sustainability Initiatives
The ANA Group has defined our ideal future from a
medium- to long-term perspective, establishing the
ANA Group ESG Commitments to continue to
grow together with society. We aim to
achieve sustainable growth and enhance
corporate value through strategies from a global
and long-term perspective, striving to
resolve social issues through our businesses.
The ANA FLYING HONU
Charter Flight
We conducted a sightseeing flight using the Airbus
A380 ANA FLYING HONU. Passengers enjoyed the
feeling of traveling to Hawaii while still in Japan.
P.76
The Power of People in the ANA Group
42
43
Sustainability Initiatives
ANA Group ESG Management
Identification of Materiality
The ANA Group is committed to addressing the four
In fiscal 2020, to clarify the ANA Group’s vision for the
To identify material issues, we looked for consistency and
impact on the environment and society and the level of
material issues of the environment, human rights, regional
future, we formulated and disclosed ANA Group ESG
continuity with our mission statement and corporate
concern (social axis), and those with a high level of
revitalization, and diversity and inclusion (D&I) through our
Commitments and initiatives to achieve them.
strategies, and whether we could contribute to the resolution
importance and impact were identified as material issues.
business activities as identified in our ESG management,
With regard to the environment, one of our material
of these issues through our business activities, based on
To scrutinize whether material issues were consistent with
which takes into consideration the environment (E), social
issues, we updated our 2050 Environmental Goals in April
three perspectives: mission statement and corporate
global affairs, changes in the environment and social needs,
(S), and governance (G). By simultaneously creating social
2021 amid accelerating global trends, particularly in
strategy, ANA Group strengths, and social trends.
as well as group corporate strategies, we confirm suitability
value and economic value, we aim to achieve a sustainable
response to climate change. As we have declared that we
The identified issues were mapped on two axes: the
through information collection and dialogue with stakeholders.
society and increase our corporate value.
will achieve carbon neutrality by fiscal 2050, we have
impact on group business (management axis) and the
We then repeat this step as many times as necessary.
formulated new 2030 Environmental Targets as a roadmap
In the wake of the COVID-19 pandemic, interest in
for achieving this goal. We will continue our efforts in the
achieving a better society and passing on a better global
areas of human rights, regional revitalization, and diversity
environment to future generations post-COVID-19 is
and inclusion (D&I), and will disclose information on our
growing rapidly. Businesses are also expected to be
progress as needed.
actively involved in resolving environmental and social
While placing importance on dialogue with stakeholders,
issues from a long-term perspective, and the ANA Group
the ANA Group will continue to contribute to achieving a
will continue to promote ESG management with an eye on
sustainable society by working to resolve social issues
the post-COVID-19 era.
through our business activities.
Schematic for
Identifying of Materiality
Checking links with the
ANA Group’s corporate
philosophy and strategy
Contribution to issue
resolution via group
business activity
Mission Statement /
Corporate Strategy
Material Issues
ANA Group
Strengths
Social Trends
Materiality Matrix
Extremely important
Human Rights
• Human rights violations
across the supply chain
Diversity and Inclusion
• Diversity of customers and employees
Society
Axis
Consideration for
stakeholders /
Impact on society
and the
environment
Environment
• Climate change
• Environmental
pollution
Regional Revitalization
• Decline of Japanese regions
• Income / education disparity in
emerging countries
Determining
long-term issues in
global society
Management Axis
Extremely
important
Impact on the operations of the ANA Group
(Mission Statement, Management Vision, direction of corporate strategy,
business opportunities and risks)
The Four Identified Material Issues
Issue Recognition
Environment
Human Rights
Regional
Revitalization
Diversity and
Inclusion
For the ANA Group
For Society
• Controlling fuel costs
• Controlling the costs of future emission trading schemes
• Maintaining / improving evaluations by avoiding
P.50
environmental risk
• Reducing environmental
footprint
P.58
P.60
• Maintaining / improving evaluations through avoiding
human rights risk
• Realizing a world that
respects human rights
• Improving profitability by generating new inbound tourism
• Revitalizing regional
demand
• Maintaining / improving profitability of domestic airline business
• Improving profits of international airline business
economies
• Promoting international
exchange
• Improving profitability by generating new demand
• Providing an issue resolution system to
P.62
strengthen capacity to respond to customers
• Realizing an inclusive
society
44
45
ESG Management Promotion Cycle for
Simultaneous Creation of Social Value and Economic Value
ESG Management Promotion Cycle
Through our business, the ANA Group is promoting ESG
management to contribute to resolving environmental
and social issues and to continue creating value as a
company that will be an indispensable part of society in
the future. Through dialogue with stakeholders, we are
able to understand the latest social needs and changing
interests and use this to evaluate the impact on business
and society. We then incorporate this information into
our management strategies and initiatives. We disclose
our progress on our corporate website and through
other channels as necessary. At the same time, based
on information we disclose, we engage in deeper dia-
logue with our stakeholders. We also report our progress
and confirm the appropriateness of our initiatives in
those discussions.
Through a cycle of dialogue, initiatives, and informa-
tion disclosure, the ANA Group will promote ESG man-
agement focusing on material issues to enhance
corporate value and contribute to achieving a sustain-
able society.
ESG Management Implementation Structure
The ANA Group established the Group ESG Management
Promotion Committee in accordance with Group ESG
Management Promotion Committee Regulations. This com-
mittee, which operates under the guidance of the president
and under the chairmanship of the director in charge of
corporate sustainability (CEPO: Chief ESG Promotion
Officer), consists of ANA HOLDINGS INC. and group
company directors, executive officers, and the full-time Audit
& Supervisory Board members of ANA HOLDINGS INC. The
committee discusses core policies and measures related to
ESG management.
In addition, important issues directly related to manage-
ment are discussed at the Group Management Committee
and reported to the Board of Directors and the Board of
Corporate Auditors. Based on these regulations, each
Group company has appointed an ESG Promotion Officer
(EPO) as the person responsible for promoting ESG man-
agement and participates as a member of the Group ESG
Management Promotion Committee, and each Group com-
pany and department has an ESG Promotion Leader (EPL)
to lead the ESG activities of their respective organization.
Matters discussed, resolved, and reported at the Board of
Directors, Group Management Committee, and Group ESG
Management Promotion Committee are shared and imple-
mented throughout the entire Group in close collaboration
with EPOs and EPLs. We also hold EPL meetings twice a
year to share information in a comprehensive manner and
promote initiatives at each Group company and department.
Dialogue
Dialogue Based on
Information
Disclosed
External
Dialogue
Stakeholder Dialogue
Internal
Dialogue
Discussions to Promote
ESG Awareness
Alignment with
Corporate Strategy
ANA Group
ESG Management
Promotion Cycle
Information
Disclosure
• Integrated Report
• Human Rights
Report
• Websites
… and other channels
Disclose Status of
Initiatives
ESG Management Implementation Structure
Board of Directors and Board of Corporate Auditors
Group Management Committee
Group ESG Management Promotion Committee
ANA HOLDINGS INC. President & Chief Executive Officer
Chief ESG Promotion Officer (CEPO)
(Director in charge of ANA HOLDINGS INC. Corporate Sustainability)
G
r
o
u
p
c
o
m
p
a
n
e
s
i
ESG Promotion Officer (EPO)
(Selected by Group company directors)
Management Committee Related to ESG Promotion
ESG Promotion Leader (EPL)
Create Both Social Value and
Economic Value,
aiming to develop a
sustainable society and
increase corporate value
Evaluate the Impacts on
Business and Society
Initiatives
ANA Group ESG Commitments
Initiatives
Relevant SDGs
E
n
v
i
r
o
n
m
e
n
t
H
u
m
a
n
R
g
h
t
s
i
R
e
v
i
t
a
l
i
z
a
t
i
o
n
R
e
g
o
n
a
i
l
T
h
e
i
d
e
n
t
i
fi
e
d
m
a
t
e
r
i
a
l
i
t
y
• Reduce CO2 emissions
• Reduce resource waste ratio
• 2030 Environmental Targets
• 2050 Environmental Goals
For further details, please refer to Material Issues—
Environment on page 50.
(plastics, paper, etc.)
• Reduce food waste ratio
(including in-flight meals, etc.)
• Biodiversity conservation
• Responsibility to respect
human rights
• Promote responsible
procurement
• Utilizing innovation to
resolve social issues
• Regional revitalization
• Contribute to biodiversity
conservation through initiatives
such as those aimed at
preventing the illegal wildlife trade
• Ensure respect for human rights
based on the United Nations
Guiding Principles on
Business and Human Rights
• Thoroughly implement
environment- and human rights-
conscious procurement and
build a transparent supply chain
• New value creation through
the use of avatars, drones,
MaaS, etc., and cross-industry
collaboration
• Contribute to regional
revitalization through social
contribution activities and
resolving social issues
I
l
n
c
u
s
o
n
i
i
D
v
e
r
s
i
t
y
a
n
d
• Responding to the
diversity of our customers
• Human resources
development to support
sustainable growth
• Respect the diversity of
customers by promoting
universal services
• Develop human resources and
a sustainable work environment,
improve employee productivity
2030
2050
2030
2030
2030
2030
2030
2030
2030
Strengthen Governance Structures
Disclose commitments of
top management
Increase diversity in board
membership
(Performance-linked remuneration
based on external evaluation)
(Increase the ratio of female
executives, etc.)
Disclosure of appropriate
information and
ensuring transparency
46
47
Sustainability Initiatives
Dialogue with Stakeholders on ESG
Please visit our corporate website for more:
https://www.ana.co.jp/group/en/csr/communications/
Main External
Discussions
Dialogues with Experts on ESG
The COVID-19 pandemic has rapidly transformed social values and behaviors. The ANA Group regularly
engages in dialogue with experts on ESG issues to understand rapidly changing social trends in a timely
manner and respond appropriately. We are enhancing the effectiveness of our activities by incorporating the
latest information and findings from these discussions into our strategies.
* Company names and titles are as of the time of the discussion.
Dialogue with Experts on the Environment (December 2020)
Topic
ANA Group
Medium-Term
Environmental Targets
Participating Experts
IKEHARA Yosuke
Climate and Energy Group Leader,
Conservation Division, WWF Japan
HIBI Yasushi
Representative Director, CI Japan and
Vice President, Conservation International
Main Comments
• Recently, the external environment is changing significantly, and there are many cases where previous
assumptions are no longer relevant. It is important to first set a goal and then build a system that can
be reviewed and responded to flexibly over a period of three to five years. Showing your stance of
emphasizing SBT*1 not only for CO2 emission reductions but also for natural assets such as water
and forests as your stable axis toward setting effective environmental goals. It is also a good idea to
lobby for the necessity of carbon credits for the airline industry to achieve zero emissions by involving
other stakeholders.
• It is important for The ANA Group to have a robust axis of sustainability and show the world its com-
mitment to environmental goals. The ANA Group can take the initiative to engage with suppliers and
encourage positive behavioral change in society.
• Japan often lacks presence in international rule-making pro-
cesses, which is not only a loss for Japan also a loss for the
international community. Proactive engagement by the ANA
Group in such processes developing sustainability standards
is strongly recommended.
*1 Science Based Targets (SBT): Reduction targets in line with what the latest
climate science says is necessary to limit global warming to well below 2°C
above pre-industrial levels.
Dialogue with Experts on Business and Human Rights (October 2020)
Topic
Business and Human
Rights initiatives
Participating Experts
(Online)
Pauliina Murphy
World Benchmarking Alliance*2
Engagement Director
Neill Wilkins
Institute for Human Rights and Business*3
Camille Le Pors
World Benchmarking Alliance
Lead Corporate Human Rights Benchmark
Main Comments
• ANA started to disclose the attendance rate of board members and the agendas of discussions at
meetings in this year’s Human Rights Report, which shows ANA’s stance to place great emphasis on
upholding the issues of Human Rights and ESG. Improving transparency in the information disclosure
process is essential for enhancing corporate value, and this disclosure is commendable.
• Since it is not possible to address all issues in human rights risk management at once, I would like to
see the effectiveness of the most recently revised procurement policy enhanced by starting with those
that require urgent action and gradually developing them.
• We are pleased to know that access to a grievance mechanism*4 has actually been put into operation.
In the future, it will be more important to verify whether the grievance mechanism is properly made
known on the frontlines and whether it is easy to access, and to review the issues it might have.
*2 World Benchmarking Alliance: An index initiative established by the
United Nations Foundation, Aviva (a British insurance company), and other
organizations. This organization develops benchmark indicators to evaluate
company contribution levels to a sustainable society.
*3 Institute for Human Rights and Business: An international think tank that
works in the field of business and human rights and leads efforts in this area.
Established in 2009.
*4 Grievance mechanism: A mechanism that enables the prevention and
mitigation of negative impacts on the company throughout the value chain,
including suppliers, as well as redress for victims of the negative impact that
has occurred.
@ Caux Round Table Japan
Dialogue with Overseas ESG Investors (December 2020)
Topic
Progress of ESG
Management in the
ANA Group and Global
Trends in ESG Investment
Participating Experts
1. EOS at Federated Hermes
SUZUKI Sachi
Associate Director - Engagement
Haonan Wu
Associate - Engagement
2. World Benchmarking Alliance
Camille Le Pors
Lead, Corporate Human Rights Benchmark
Charlotte Hugman
Research Analyst on the Climate and
Energy Transformation
Main Comments
1. EOS at Federated Hermes
• The Japanese government has announced a policy to become carbon neutral by the year 2050.
Therefore, it is important for Japanese companies to involve the government and industry in their
efforts to achieve this goal and take up the challenge.
• Regarding diversity, the number of female managers is steadily increasing but we believe there is still
room for improvement, and would like to be informed if there are plans for any ongoing activities.
When exercising voting rights, the number of female directors of each company will be judged based
on stricter standards than before.
2. World Benchmarking Alliance
• If planning on being actively involved in the efforts related to Science Based Targets, it is advisable to
refer to the guidance provided by the Science Based Targets Initiative*5.
• We believe the trend of tightening regulations on due diligence*6 laws will spread not only to the
European region but also to other regions in the future. In terms of due diligence, it will be necessary
to identify and disclose information on the risks and impacts of a company’s business on society and
the environment, in a way that links both environmental and human rights, rather than addressing
them separately.
*5 SBTi (Science Based Targets Initiative): A joint initiative by WWF, CDP, the World Resources Institute (WRI), and the UN
Global Compact to achieve reduction targets.
*6 Due diligence: The process by which a company identifies environmental and human rights risks in its supply chain
associated with its business activities and takes preventive and mitigating measures.
Main Internal
Discussions
Internal Discussions to Promote ESG Awareness
We are holding a variety of internal discussions to encourage each employee to understand the importance
of promoting ESG management, and to take it as their own business and put it into practice in their daily
work. By utilizing an online format, more employees can participate.
Direct Discussions
with Executives
(Town Meetings)
Management and employees share an awareness of the need to
achieve goals by exchanging opinions on company policies and
proposing improvements in products and services. There have
been many cases where the opinions and ideas expressed at town
meetings have led to new products, services, and activities.
(e.g., digitization of papers used by flight crews, solicitation of
donated miles to support medical personnel, etc.)
SDGs Seminar
Seminars are available to all Group employees in an online format.
We are learning to think about how we can contribute to the SDGs
through our work, and to practice and deepen initiatives familiar to us.
ESG TOP Discussions
with Employees
ANA Group officers ran a TOP discussion on the promotion of ESG
management.
After a panel discussion on the latest global trends and the
status of initiatives in the departments over which the officers have
responsibility, employees and officers participating online had the
opportunity to exchange opinions and deepen their understanding
of ESG management.
48
49
Sustainability Initiatives
Sustainability Initiatives
Material Issues
Environment
1 Reduce CO2 emissions
2 Reduce resource waste ratio
3 Reduce food waste ratio
4 Biodiversity conservation
Basic Approach
The ANA Group has introduced the ANA Group Environmental Principles and the ANA Group Environmental Policies. These
principles and policies build on the ANA FLY ECO 2020 medium- to long-term environmental plan from fiscal 2012 to fiscal
2020 and include initiatives for reducing our environmental impact. To resolve environmental problems, we recognize that
efforts to reduce our environmental impact and the conservation of biodiversity are important management issues.
In addition to declaring carbon neutrality by fiscal 2050 in our 2050 Environmental Goals, the ANA Group has formulated new
2030 Environmental Targets and is making steady progress in our initiatives to reduce our environmental impact.
Past Initiatives ANA FLY ECO 2020 (2012-2020)
In terms of aircraft operations, we have been steadily achieving
However, due to a significant decrease in demand, CO2
our targets since fiscal 2012 by improving flight operations and
emissions per ton-kilometer of paid transportation increased.
reducing fuel consumption through the proactive introduction of
In terms of the reduction of ground operations CO2 emissions
fuel-efficient aircraft, such as the Boeing 787. In fiscal 2020,
(other than aircraft operations), we have been successful in our
due to the impact of the COVID-19 pandemic, we were forced
efforts to reduce our per-unit energy consumption for ground
to reduce and cancel flights, resulting in a significant 44%
operations by 1% annually in accordance with the Act on the
decrease in total CO2 emissions compared to the previous year.
Rational Use of Energy.
CO2 Emissions per
Revenue-Ton-Kilometers (RTK)
on International and
Domestic Route Targets and Results
Target
20% reduction vs. FY2005
(1.00kgCO2/ RTK)
Total Domestic Route
CO2 Emissions
Target
Less than 4.4 million tons
CO2 emissions per RTK on international and domestic routes [Results]
CO2 emissions per RTK on international and domestic routes [Targets]
Total domestic route CO2 emissions [Results]
Total domestic route CO2 emissions [Targets]
(kgCO2/RTK)
1.30
1.25 1.25
1.20
1.10
1.13
1.00
0.90
(Million tons)
5
4.83
4
4.36
1.19
0.99
1.00
0.97
1.01
0.96
3
2
1
4.40
4.13
4.13
4.09
4.00
1.67
2005
2012
2016
2017
2018
2019
2020
(FY)
0
2005
2012
2016
2017
2018
2019
2020
(FY)
Please visit our corporate website for more:
https://www.ana.co.jp/group/en/csr/environment/
ANA Group 2050 Environmental Goals and 2030 Environmental Targets
In July 2020, ANA Group put together our 2050 Environmental
To achieve our goal of net zero CO2 emissions, it is necessary
Goals to address environmental issues, including a 50%
to make improvements to the facilities and the environment
reduction in CO2 emissions from aircraft operations by fiscal
surrounding Air Transportation Business, including a stable
2050 (compared to fiscal 2005). In light of the Japanese
supply of SAF*1 and increased airport infrastructure. Knowing
government October 2020 policy announcement of becoming
that issues and needs arise as social conditions change, we will
carbon neutral by the year 2050, the ANA Group has furthered
periodically examine the issues and revise our targets and plans
its 2050 Environmental Goals to include net zero aircraft CO2
as needed.
emissions by fiscal 2050 and have put together our 2030
Environmental Targets as a roadmap to achieve this goal.
*1 SAF (Sustainable Aviation Fuel): Aviation fuel that is not produced from fossil fuels
but from sustainable sources such as vegetable oils and animal fats.
FY2030
FY2050
Targets
Below FY2019
Net zero
Aircraft
• Use of SAF
Initiatives
• Adopt new aircraft technologies
• Improve flight operations
• Use of emission trading schemes
Reduce
CO2 Emissions
• Stable supply of SAF (volume and price)
Requirements
for Success
• Adopt new aircraft technologies (Development of electric and hydrogen airplanes, etc.)
• Development of the CO2 credit market
Targets
33%+ reduction
vs. FY2019
Net zero
Non-Aircraft
• Energy conservation and renewal of aging facilities and equipment
Initiatives
• Use of renewable energy (solar, wind, etc.)
• Select EVs (Electric Vehicles) and FCVs (Fuel Cell Vehicles) when upgrading airport vehicles
Requirements
for Success
• Expansion of renewable energy supply
• Development of airport infrastructure to convert to EVs/FCVs
Reduce Resource Waste Ratio
(Plastics, Paper, etc.)
Targets
70%+ reduction
vs. FY2019
Zero waste ratio
Initiatives
• Replace disposable plastics for eco-friendly materials
• Promote cargo plastic recycling
• Digitize paper resources (in-flight magazines, timetables, travel brochures,
and cargo waybills)
Per-Unit Energy Consumption for Ground Operations
Target
Reduce by 1% year on year
2012
-1.0
2013
-0.9
2014
-0.7
2015
-3.1
2016
-4.2
2017
-3.3
2018
-3.9
2019
-9.0
2020
-16.5
(FY)
(%)
Reduce Food Waste Ratio
(Including In-Flight Meals, etc.)
Targets
Reduce to less than 3.8%
(FY2019 waste ratio: 4.6%)
Reduce to less than 2.3%
(50% reduction vs. FY2019)
Initiatives
• Monitor the disposal of in-flight and domestic airport lounge meals and reevaluate
loading capacity
For further details on the targets and results of ANA FLY ECO 2020, please refer to:
https://www.ana.co.jp/group/en/csr/environment/goal/#anchor003
50
51
Environment
1
Reduce CO2 Emissions
Reduce CO2 Emissions from Aircraft Flight Operations
FY2030
Targets
Below FY2019
FY2050
Net zero
ANA Group CO2 Emissions (image)
Increase in CO2 emissions
due to increased demand
(assumed)
CORSIA*1 coverage period
(2021 to 2035)
Below
FY2019
1
2
3
4
Use of SAF
Adopt New Aircraft
Technologies
Improve Flight Operations
Use of Emission
Trading Schemes
2019
2030
2050
(FY)
The ANA Group is working to address environmental issues
focusing on the use of SAF. We will achieve our fiscal 2050 goal
and recover and grow our business from the COVID-19
of net zero CO2 emissions by continuing to improve flight
pandemic. To achieve our goal of zero CO2 aircraft emissions
operations and innovate with the latest technology as well as by
by fiscal 2050, our roadmap 2030 Environmental Targets is
focusing on fuels such as electricity and hydrogen.
based on the international aviation ICAO/CORSIA guidelines. To
reduce total emissions below fiscal 2019 levels, we are focusing
on four pillars (1. Use of SAF, 2. Adopt new aircraft technologies,
3. Improve flight operations, and 4. Use of emission trading
schemes). From fiscal 2030, we will accelerate our efforts
*1 CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation):
A carbon offsetting and carbon reduction scheme to reduce CO2 emissions from
international flights and limit the impact of aviation on climate change. Adopted by the
International Civil Aviation Organization (ICAO), aircraft CO2 emission offsetting based
on 2019 levels will be mandatory from 2021.
1
Use of Sustainable Aviation Fuel (SAF)
SAF is highly valued in positively contributing to the environment and so the ANA Group has placed its use at the center of our
measures to reduce aircraft CO2 emissions. However, a large gap exists between the global demand for jet fuel and the current
supply of SAF. The stable supply of SAF is therefore an issue that requires urgent attention. The ANA Group has been involved
with the following initiatives to build a supply chain in anticipation of the increasing demand for SAF.
2011
To support the development of domestic SAF production, we invested in Euglena Co., Ltd. and later participated in a
project run by the New Energy and Industrial Technology Development Organization (NEDO)
Signed an offtake agreement with U.S.-based SAF
manufacturer LanzaTech, Inc.
2019
Conducted a delivery flight of a new aircraft to Japan
using SAF made from exhaust gas produced by
LanzaTech, Inc. in collaboration with MITSUI & CO., LTD.
Strategic alliance with Finland‐based SAF manufacturer
NESTE for medium- to long-term supply
In cooperation with NESTE, first scheduled flight using SAF
departed from Haneda and Narita airports
Procured commercial-scale SAF from NESTE,
scheduled to commence use on regularly scheduled
flights from Haneda and Narita airports in summer
2021
Toshiba Energy Systems & Solutions Corporation, Toshiba Corporation, Toyo Engineering Corporation, Idemitsu
Kosan Co., Ltd., and Japan CCS Co., Ltd. agreed to begin looking into a carbon recycling business model*2 that
recycles CO2 from exhaust gas and other sources into SAF
For the NEDO project, domestically produced SAF manufactured by IHI Corporation was used for regularly scheduled
commercial flights from Haneda Airport (June)
2020
2021
We are currently working together with the public and private sector to build a supply chain and manufacture SAF not only
overseas but also domestically by participating in the Japanese government’s study group on carbon neutrality by 2050 (such
as the study group on aircraft CO2 reduction).
*2 Carbon recycling business model: Power to Chemicals (P2C) is a carbon recycling technology that uses renewable energy and renewable hydrogen to recycle CO2 into highly
valuable materials that positively contribute to the environment. This not only reduces CO2 emissions but also contributes greatly to the expansion of renewable energy.
2
Adopt New Aircraft Technologies
As the launch customer of the fuel-efficient Boeing 787, the ANA Group owns 74 aircraft (as of the end of March 2021) and is
actively introducing state-of-the-art aircraft such as the Airbus A320neo and A321neo. As of the end of March 2021,
fuel-efficient aircraft accounted for 72.5% of the group‐owned fleet (jet aircraft only). We believe that we can further contribute
to the reduction of CO2 emissions by advancing engine technology to run on fuels such as electricity or hydrogen.
52
53
Sustainability Initiatives Environment
3
Improve Flight Operations
The ANA Group is implementing initiatives to reduce our envi-
ronmental impact at each stage of our operations. The
Operations Department is managing results from setting the
Three Priority Operational Measures
Targets
FY2030
70%+ reduction
vs. FY2019
FY2050
Zero waste ratio
2
Reduce Resource Waste Ratio (Plastics, Paper, etc.)
following three priority measures to reduce CO2 emissions:
Creating a Flight Plan
The ANA Group promotes the 3Rs (Reduce, Reuse, and Recycle) and is working to reduce our resources waste ratio. We
(1) climb with early acceleration after takeoff, (2) single-engine
taxiing, (3) reducing thrust reverser usage. We also implement
environmentally friendly operations such as regular engine
cleaning to improve combustion efficiency and flight planning
by selecting the optimal altitude, speed, and route.
For more information on what we are doing at each
stage of our operations, please refer to:
https://www.ana.co.jp/group/en/csr/environment/operating/
4
Use of Emission Trading Schemes
encourage use reduction and recycling, especially of plastics and paper.
During Cruise
During Climb
(1) Climb with early
acceleration
During Descent
Landing
(2) Single-engine taxiing
(3) Reducing thrust reverser usage
Post Flight
Under
Maintenance
While Parking
Aircraft
Takeoff
Reduce the Use of Plastics
We are replacing disposable plastic products used in
airport lounges and on flights with eco-friendly materials
such as paper and bio-plastics. From August 2021, we
plan to become the first Japanese airline to change the
main dish containers for international economy class
in-flight meals from plastic to eco-friendly bagasse (stalks
and leaves left over when sugar is refined from sugar cane).
This will reduce the amount of in-flight disposable plastic by
approximately 30%. We are also encouraging the recycling
of vinyl used for cargo packaging, not only to reduce the
amount used but also to promote the 3Rs.
Reduce Paper Resources
We are working to reduce the use of paper resources by
promoting the digitization of timetables, in-flight magazines,
and cargo waybills, as well as optimizing the number of
travel brochures.
As we will need to offset increased CO2 emissions from 2021 onward as per ICAO/CORSIA guidelines, we will also utilize emissions
trading (purchase of CO2 emissions credits) for CO2 emissions that cannot be reduced even after implementing the above measures
( 1 2 3 ).
Reduce CO2 Emissions from All Non-Aircraft Flight Operations
Targets
FY2030
33%+ reduction
vs. FY2019
FY2050
Net zero
The ANA Group implements appropriate energy management using our energy management system ANA Eiims based on our own Energy
Management Standard. Companywide, the ANA Group reduced CO2 emissions by 26% in fiscal 2020 compared to the previous fiscal year.
In addition, ANA and ANA Catering Service Co., Ltd. received the Excellence in Energy Efficiency Award (S Class) certification under the
Act on the Rational Use of Energy of the Ministry of Economy, Trade and Industry (METI) for the sixth consecutive year since this scheme
was established. To achieve net zero CO2 non-aircraft emissions by fiscal 2050, we will work to reduce energy consumption by fiscal
2030, focusing on the use of electricity and vehicle fuel (gasoline and diesel fuel), which accounts for the majority of our total emissions.
Electricity
We will systematically upgrade our facilities and equipment to energy-saving devices. ANA Blue Base, the ANA Group com-
prehensive training center, ANA Tonomachi Business Center, and ANA TELEMART Nagasaki Branch Call Center use electricity
generated by their own solar power generation, and the use of renewable energy at their facilities reduces CO2 emissions.
In addition to deepening energy-saving measures, we are gradually upgrading our airport vehicles to hybrid vehicles (HVs),
electric vehicles (EVs), and fuel cell vehicles (FCVs). We will make the switch to EVs and FCVs from all vehicles (ones that use
gasoline) by fiscal 2030.
Vehicle
Fuel
54
3
Reduce Food Waste Ratio (In-Flight/Airport Lounge Meals, etc.)
FY2030
FY2050
Targets
Reduce to less than 3.8%
(FY2019 waste ratio: 4.6%)
Reduce to less than 2.3%
(50% reduction vs. FY2019)
The ANA Group is working to reduce our food waste ratio such as in-flight meals.
Reduce Food Waste Ratio In-Flight and
at Domestic Airport Lounges
flights. This service helps us meet passenger requests for
in-flight meals and eliminate the need to load extra meals.
This service improves customer satisfaction, while reducing
We monitor the waste ratio of in-flight meals on domestic
food waste.
and international flights, and review the number of meals
carried in premium class on domestic flights and first and
business class on international flights.
We have expanded pre-in-flight meal reservations in first
Going forward, we will reduce our food waste ratio
throughout the product life cycle (procurement of
ingredients, preparation, meal delivery, and disposal) by
thoroughly managing in-flight light dishes between meals
class and business class sections of our international
and domestic airport lounge meals.
55
Sustainability Initiatives Sustainability Initiatives
Environment
Implementation Structure
Important policies related to environmental activities are
twice a year with the heads of environmental departments
discussed at the Group ESG Management Promotion
of major Group companies as committee members. In
Committee. In addition, we established two subcommittees
addition to the Group ESG Management Promotion
to discuss initiatives to reduce our impact on the
Committee, important matters related to management
environment: the Eco-First Subcommittee for initiatives
policy are discussed at the Group Management Committee
related to aircraft operations and the Ground Energy
and submitted to the Board of Directors. We, along with
Subcommittee for non-aircraft operations initiatives. The
each Group company and department, are promoting
Eco-First Subcommittee and the Ground Energy
initiatives to address environmental issues by implementing
Subcommittee are chaired by the General Manager of the
PDCA management.
Sustainability Promotion Department and are held at least
Board of Directors
Submit Agenda/Report
Report
Group Management Committee
Propose Management Issues
Group ESG Management Promotion Committee
• Identification of materiality
• Confirmation and setting of
targets and activities based
Group Management Committee
/ Group ESG Management
Promotion Committee policies
• Setting energy management
Plan
Do
standard based activities
• Initiatives at Group companies
and departments (operational
improvement and energy
conservation activities)
• Understanding ANA Eiims
environmental data
• Education and raising
awareness
EPL Meeting
Eco-First Subcommittee
Ground Energy Subcommittee
Instructions
Instructions
EPO/EPL
Environment Officer
Cross-
Coordination
Group Companies and Departments
Action
Check
• Analysis and evaluation at
• Review of initiatives
• Clarification of materiality
• Incorporate into next plan
PDCA Cycle
each department
• Stakeholder dialogue
(opinions, assessment)
• Internal/external audits
• Information disclosure
Information Disclosure
CDP
TCFD
In response to investor requests for disclosure, the Carbon Disclosure Project (CDP)
assessment is aimed at disclosing information on greenhouse gas emissions and
corporate strategies for climate change. Since fiscal 2016, the ANA Group has dis-
closed greenhouse gas emissions data corresponding to Scope 1, 2, and 3 as
defined in the Act on the Rational Use of Energy. This data is verified for accuracy by
a third-party agency. Our assessment for 2020 was B. (The industry average is C.)
In March 2019, the ANA Group became the first Japanese airline to endorse the recom-
mendations of the Task Force on Climate-related Financial Disclosures, established by
the Financial Stability Board*1. Based on the revision of Japan’s Corporate Governance
Code, we will continue to enhance the quality and quantity of information disclosure
related to climate change issues as an initiative to address sustainability issues.
*1 Financial Stability Board (FSB): A body comprising of financial ministries and central banks of each country
that is responsible for the supervision of international finance.
SBT
The ANA Group has committed to SBT (Science Based Targets) in May 2020 and aims to have it approved
within two years. Additionally, to be involved in setting rules for aviation‐sector reduction targets, we have
joined the WWF (World Wide Fund for Nature)-led SBT Technical Subcommittee, and are helping to create
guidance for reduction targets.
Initiatives to Reduce Environmental Impact
Carbon Offset Program
The ANA Group offers the ANA Carbon Offset Program for each class on domestic and international routes. This pro-
gram is a mechanism that allows passengers to offset the amount of CO2 emitted by their aircraft. We select offset pro-
grams that meet global certification standards.
More details on the project, please refer to:
https://www.ana.bluedotgreen.co.jp/en/home
Eco-First Certified Company
In 2008, ANA became the first in the transportation industry and the first airline to become a certified
Eco-First Company. We received this honor in recognition of our environmental initiatives and corpo-
rate stance that emphasizes social responsibility. As an environmentally advanced company, we have
declared our Eco-First Promise to protecting the global environment and are working toward achieving
a sustainable society.
4
Biodiversity Conservation
Team Chura Sango Coral Reef Conservation
Project in Onna Village, Okinawa
The ANA Group has been working with the Okinawan
Environment Ministry and Onna Village since 2004 on Team
Chura Sango, a coral reef conservation project, to plant
coral seedlings and conduct educational activities in and
outside Okinawa Prefecture. The coral reef is facing a crisis
due to bleaching caused by rising sea temperatures and
feeding damage caused by a large number of crown-of-
thorns starfish. To help pay for the coral seedling activities,
ANA Mileage Club members are able to donate miles to
support Team Chura Sango activities. A record number of
2,287 trees were planted in fiscal 2020, bringing the total
to 15,432.
Supporting Amami Oshima, Tokunoshima,
Northern Okinawa, and Iriomote Island as
World Natural Heritage Sites
Since fiscal 2017, the ANA Group has supported the
registration of these areas as World Natural Heritage sites.
One of these activities is volunteers helping to control
invasive plants that have a significant impact on the
Yanbaru National Park ecosystem. In cooperation with the
Environment Ministry, Kunigami Village, and Ogimi Village,
we are conducting activities under the guidance of
Environment Ministry rangers, mainly in the Tagari district of
Ogimi Village, where the damage is worst.
Organizing Seminars to Eradicate the
Illegal Wildlife Trade
In March 2018, ANA became the first Japanese airline to
sign the Buckingham Palace Declaration, which aims to
eradicate illegal wildlife trade as recommended by IATA.
Since fiscal 2018, we have been conducting seminars using
illegal wildlife trade prevention educational textbooks super-
vised by ROUTES*2 in collaboration with TRAFFIC*3. The
fiscal 2020 online seminar was co-hosted with Narita
International Airport Corporation for the second consecutive
year. A total of 170 employees from ANA Group companies,
including airport personnel and over-
seas branches participated.
*2 ROUTES: ROUTES is an international collaborative
platform for dealing with criminal activities involving
the illegal trade of wild animals.
*3 TRAFFIC: An international NGO that surveys and
monitors wildlife trade. Established as a joint project
between the WWF and IUCN (International Union for
Conservation of Nature)
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57
Sustainability Initiatives
Material Issues
Human Rights
1 Responsibility to respect human rights
2 Promote responsible procurement and
supply chain management
Basic Approach
The ANA Group has a wide range of business operations which involve various risks to human rights.
The ANA Group is committed to upholding human rights in accordance with the global standards provided in the United
Nations Guiding Principles on Business and Human Rights. In April 2016, we established the ANA Group Policy on Human
Rights. We based this policy on the International Bill of Human Rights (the Universal Declaration of Human Rights and the two
International Covenants), the International Labour Organization Declaration on Fundamental Principles and Rights at Work, the
Ten Principles of the United Nations Global Compact, and the United Nations Guiding Principles on Business and Human
Rights. In fiscal 2020, we reviewed our existing procurement policy and formulated a new ANA Group Procurement Policy con-
sisting of the Basic Procurement Policy and the Supplier Code of Conduct. We continue to encourage our contractors and
suppliers to adopt similar policies.
Please visit our corporate website for more:
https://www.ana.co.jp/group/en/csr/human_rights/
https://www.ana.co.jp/group/en/csr/supply_chain_management/
Prevent the Use of Airplanes in Human Trafficking
After conducting training for all cabin attendants, we began a program in fiscal 2019 to
report potential cases of human trafficking found in-flight to ground facilities.
In fiscal 2020, in collaboration with Narita International Airport Corporation, we worked
with related organizations to hold an online seminar on the topic of human trafficking
prevention.
Corruption Prevention
To comply with the anti-bribery laws of countries around the world, we have established the ANA Group Anti-Bribery Regulations
which explains these regulations with specific examples. By distributing the ANA Group Anti-Bribery Handbook and conducting
e-learning programs, we are working to educate our employees. In fiscal 2020, we conducted online seminars in China and
e-learning in the United States.
Online Seminar
2
Promote Responsible Procurement and Supply Chain Management
In recent years, human rights issues, such as industrial accidents, have become increasingly serious in the globalized supply chains
of companies. In addition to complying with the laws and regulations of each country, companies are required to respect the spirit of
internationally recognized standards and principles to contribute to achieving a sustainable society.
We will continue human rights initiatives, recognizing that respect for human rights lies at the very foundations of the philoso-
Formulation of the ANA Group Procurement Policy
phy of the SDGs.
Issuing the Human Rights Report
The ANA Group issued our first Human Rights Report in Japan in
fiscal 2018, aiming to promote communication with stakeholders
through active dissemination of our initiatives to respect human
rights. The Group has continued to issue these reports annually
since then.
Human Rights Report 2020
Human Rights Report 2020
https://www.ana.co.jp/group/en/
csr/effort/pdf/Human_Rights_
Report_2020_e.pdf
1
Responsibility to Respect Human Rights
To ensure respect for human rights, in fiscal 2016 and fiscal 2019 we conducted a review to identify potential risks to human rights
related to business activities across the ANA Group and at all locations where we serve. We are working to prevent the occur-
rence of risks with regard to the areas we have identified.
Survey on Employment Conditions of Foreign
Workers in Japan
To quickly address not only potential but actual human rights risks of
foreign workers, in fiscal 2020 we conducted a system-based review on
the employment status of foreign workers in the ANA Group and major
contractors. By using this summarized data going forward, we will strive
to provide a suitable and comfortable work environment. In addition,
with the cooperation of a third-party organization (Caux Round Table
Japan*1), we have begun operating a grievance process system in
accordance with global standards. Going forward, we will continue to
work on improving the effectiveness of this system we have established.
*1 Caux Round Table Japan: A global network of business leaders dedicated to creating a freer,
fairer, and more transparent society through business.
Image of the Global Supply Chain
Data Management System
Expert Review
Image of the Grievance
Process System
Since fiscal 2016, the ANA Group has held regular annual discussions with international human rights experts to obtain advice
on ANA Group initiatives to respect human rights. In October 2020, we invited three human rights experts from the Institute for
Human Rights and Business*3 and World Benchmarking Alliance*4 to evaluate the progress of the initiatives set forth by the
ANA Group given the advice received in fiscal 2019. The experts advised us on supply chain management methods and new
human rights issues that we should be aware of in the context of the COVID-19 pandemic.
*3 Institute for Human Rights and Business: An international think tank working in the field of business and human rights and leading efforts in this area. Established in 2009.
*4 World Benchmarking Alliance (WBA): The Index Initiative established primarily by the United Nations Foundation and British insurance company Aviva. This organization develops
benchmark indicators to evaluate company contribution levels to a sustainable society.
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59
As well as providing safe and secure services, the ANA Group will contribute to the creation of social value
through our procurement activities by taking initiative in considering local and global social and environmental issues.
As part of this effort, we have formulated the ANA Group Procurement Policy to promote more sustainable
procurement activities throughout the supply chain. Particularly in terms of human rights and the environment, we
now request more extensive and detailed information from suppliers compared to our previous ANA Group
Purchasing Policy.
ANA Group Procurement Policy
Basic
Procurement
Policy
Supplier
Code of
Conduct
Supply Chain Management of In-Flight Meals
In fiscal 2017, the ANA Group became the first Japanese company to join the Bluenumber
Initiative*2. We are in the process of registering information on producers and companies
involved in in-flight meal ingredients to build a highly transparent food supply chain that includes
respect for human rights and environmental conservation in the production process.
*2 The Bluenumber Initiative is a global program to establish food supply chain platforms by Bluenumber Foundation.
Image of Bluenumber Initiative
Administration Site
Involving Business Partners
In addition to sharing the ANA Group Procurement Policy and international standards on business and human rights with contractors
and suppliers, we also provide web-based in-house e-learning programs to further promote understanding of ANA Group activities.
We also work together with our business partners to ensure their workplace environments uphold respect for human rights.
Sustainability Initiatives
Sustainability Initiatives
Material Issues
Regional Revitalization
1 Utilizing innovation to resolve social issues
2 Regional revitalization through social
contribution and resolving social issues
Basic Approach
Regional revitalization is an initiative to overcome the declin-
ing population and shrinking regional economy, and to
ensure that the region will grow in the future. In addition to
air transportation, the ANA Group is developing businesses
in many areas that contribute to the local communities,
including hometown tax donations, cashless promotion proj-
ects, digital advertising using ANA Mileage Club data, and
resolving social issues through the newme avatar* 1.
Future businesses will strengthen the relationships we have
built with local communities through our airline and travel
businesses, and work with local governments, NGOs, NPOs,
along with a variety of local companies. These collaborations
will address the concerns and issues of local communities,
and utilize and apply the strengths and assets of the group
while focusing on the promotion of tourism for the sustainable
development of local communities. We will take on the chal-
lenge of expanding the scope of problems to resolve.
*1 newme avatar: A new means of transportation developed by avatarin Inc, an ANA
Holdings start-up that transports a person’s consciousness and presence without
moving their body. From various devices, users can in real time control newme
remotely in the location they want to move to, and see, talk, and walk around it.
Implementation Structure
Promotion of
Agriculture
and Fisheries
Tourism
Promotion
Regional
Issues
Measures for
a Declining
Population
Employment
Measures
Promotion of
Commerce and
Industry
Life-Long
Learning
Cultural
Community
Measures
Welfare and
Nursing Care
Other Measures
External Partners
Collaborations
Collaborations
External Partners
• Regional
Governments
• Local Business
• Farmers, etc.
• Various Business
Collaborations
Digital
Aviation Network
ANA Group
Companies
The Group Regional Revitalization Meeting, organized by the ANA Akindo Regional Revitalization Department, integrates Group
companies initiatives organically and promotes itself as a place for value creation and planning that connects with regional issues.
Regional
Governments/
DMO/
Regional
Businesses
ANA Group
Concierges
Government Agencies
ANA Akindo
Regional Revitalization
Department
• Prioritize issues
• High-quality trial and error
with the community
• Ideas are valuable and
competitive
ANA Group
Regional
Revitalization
Meeting
Deployment across the Group
ANA Strategic Research
Institute
Secondments, consulting, surveys, etc.
ALL NIPPON AIRWAYS
TRADING
Hometown tax, merchandising,
ANA Group advertising media
ANA X
Travel package planning and sales, mileage,
digital communications, crowdfunding
ANA Business Solutions
Provide ANA Group expertise
ANA Cargo
Expansion of export regional, local products
ANA Department
Overseas HQs, Offices
Marketing and promotions for inbound tourism
Please visit our corporate website for more:
https://www.ana.co.jp/group/en/csr/regional_creation/
1
Utilizing Innovation to Resolve Social Issues
To achieve one of our business innovation initiatives, we are providing services with avatar technology that connect users with
people, goods, services, and places. From the comfort of their own home, users can see aquarium exhibits and shows, and enjoy
shopping at their favorite stores. We can provide future work styles and new services and solutions through the newme avatar.
Case 1
Decline in Aquarium Visitors: Visit Anytime from Anywhere Using the newme Avatar
Business
Overview
• Using the newme avatar technology and platform, we have created a system that
allows users to visit regional aquariums and facilities from anywhere at any time
Regional
Issues
• Big drop in number of regional aquarium visitors
• Desire to increase revenues at regional aquariums
Methods
• Using newme avatar technology, develop a new aquarium viewing tool
Children Can Control the newme Avatar and
Aquarium Guide Remotely
2
Contribute to Regional Revitalization Through Social Contribution and by Resolving Social Issues
The ANA Group is working to resolve essential regional issues. Utilizing ANA Group expertise, from the production of agricultural
products to branding and market development, we are contributing to improving the attractiveness of primary industries and
promoting community-based sustainable cycle practices.
Case 2
Save Tangerine Farms!: An ANA Farm Project @ Ehime Prefecture
Business
Overview
Regional
Issues
Methods
• ANA will oversee an abandoned tangerine farm and support the entire process from
production to processing, distribution, and sales.
• Need to raise the profile of prefecture specific products and due to lack of sales
channels, sales are not increasing
• Increase in the number of abandoned farms due to a decrease in the number of
successors
• Expansion of sales channels and branding of prefecture specific products using
ANA expertise
• Food processing using ANA catering expertise
• Dispatch of ANA personnel to farms
Case 3
Supporting Community Dreams: Regional Bank Crowdfunding Collaboration
Business
Overview
• Using regional bank networks, promote crowdfunding of potential regional Business Seeds*2 for commercialization
Regional
Issues
• Desire to commercialize a business idea but lack the financial resources
• Need to improve the means of publicizing projects for commercialization
• Using regional bank networks, identify local businesses that could support
commercialization
We are working on a regional revitalization project to identify and develop attractive regional commercial products
Methods
and develop them into a platform. As part of our regional cooperation, we are collaborating with Tajima Bank, Ltd.
This collaboration was coordinated by the Kirin no machi Tourism Bureau Association (DMO Japanese Version) for
the eastern part of Tottori Prefecture and the western part of northern Hyogo Prefecture.
• Provide crowdfunding opportunities through ANA WonderFLY
Web Image of ANA WonderFLY
ANA HOLDINGS INC.
Group Companies
Cross-organizational initiatives
*2 Business Seeds: The seeds of business, such as technology, expertise, ideas, and equipment, that a company possesses.
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61
Sustainability Initiatives Sustainability Initiatives
Material Issues
Diversity and Inclusion
1 Responding to the diversity of our customers
2 Human resources development to support
sustainable growth
Basic Approach
The ANA Group is promoting diversity and inclusion throughout the group.
As customer values diversify and the social environment changes, continuing to be chosen and trusted by all customers is
crucial for the future growth of the ANA Group. We will continue to accelerate initiatives aimed at providing world-class inclu-
sive and universal services in an effort to fulfill our responsibility as a public transportation entity and build a sustainable inclu-
sive society in which everyone can live together.
Implementation Structure
One pillar of our corporate strategy is the fiscal 2018-2022 Universal Service Strategy, which
provides ANA Group services that every customer can enjoy comfortably and with peace of
mind. To enhance our universal services, we are expanding services, facilities, and equipment
at various points of contact with customers, and promoting the development of human
resources who can develop and provide services that respect the needs and diversity of each
customer and are attentive to their feelings.
*1 ANA CX MAP: This map depicts various points of contact between customers and the ANA Group from daily life to post‐use.
Please visit our corporate website for more:
https://www.ana.co.jp/group/en/csr/customer_diversity/
Airport (Facilities)
Aircraft
• Apartment-style low counters
at five major domestic airports
including Tokyo (Haneda) and
Osaka (Itami)
• Installation of low counters at
• Expanded deployment of
50 airports in Japan
special vehicles (lift buses) to
support smooth boarding and
disembarking of passengers in
wheelchairs or on stretchers.
• In-flight wheelchair-accessible
restrooms have been installed
on small jets (A320neo/A321)
in addition to large and
medium-sized aircraft.
Human Resources Development to Drive Barrier-Free Mindset Practices
(Service Legacy of Diversity)
We promote human resources development through a variety of educational activities so that each employee can deepen their
understanding and practice of people with disabilities.
Inclusive and Universal Services Practical Training
Universal Service
Refresher Training
Barrier-Free
Mindset Seminar
ANA CX MAP*1
• We conduct training for all Group executives and employees to
develop employees who understand diversity and can provide
support and encouragement in a sympathetic manner.
• We conduct regular e-learning
sessions throughout the year
to raise the level of universal
services throughout the group
• We invite speakers from NPOs
and universities and paralym-
pians to give lectures as
needed.
1
Responding to the Diversity of Our Customers
Creating an Environment for Customer Comfort (Facility Legacy of Diversity)
We will continue to create services, facilities, and equipment offering even greater comfort and convenience in any scenario,
from pre-departure through arrival.
ANA Official Website
Assistance Information
Registration Service
Airport (Information)
• For everyone to be able to use our ser-
vices comfortably, we have adopted the
global standard proposed by W3C*2 and
taken measures to meet the WCAG 2.0*3
conformance level AA ranking.
• By registering the necessary assistance
information for boarding in advance, you
can complete the reservation process
smoothly.
• Telecommunication Relay Services at
counters
*2 W3C: Abbreviation for World Wide Web Consortium. The name of a non-profit organization that promotes the standardization of web technologies.
*3 WCAG 2.0: Abbreviation for Web Content Accessibility Guidelines Version 2.0. Guidelines for accessibility of web content.
Expansion of ANA’s Sora-Pass Classes
Creation of
Hospitality Guidelines
• ANA Group employees created a hands-on curriculum that addresses characteristics of disabilities
and visit special-needs schools to teach classes to students that are planning school trips on
ANA flights to help alleviate the anxieties about air travel.
• We established hospitality
guidelines for COVID-19
countermeasures.
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63
Sustainability Initiatives Diversity and Inclusion
Further Promotion of ESG Management
Promoting Universal Services through Group Businesses
Using External Evaluations Related to ESG
Leveraging Strengths for New Value: ANA Wing Fellows Vie Oji (Co., Ltd.)
To achieve a universal environment where all people can lead their lives without feeling inconvenienced, ANA Wing Fellows Vie
Oji is developing a consulting business that combines a lively perspective and the spirit of hospitality through collaboration
between people with disabilities and staff with customer service experience such as flight attendants. So far, we have provided
support for verification and training for ANA Group employees regarding airport facilities and in-flight facilities and services, verifi-
cation of accommodation facilities, and promotion of employment of visually impaired people. In fiscal 2020, we set up an online
system and promoted the creation of an environment based on universal standards that are needed now in the midst of the
COVID-19 pandemic.
Web usability consulting*4
Identification of issues and propos-
als for countermeasures against
COVID-19
Universal seminar to
promote employment of
people with disabilities
Results of the four following external evaluations have provided us with an objective and multifaceted understanding of ANA
Group ESG management. We intend to reflect these results in officer remuneration.
DJSI
FTSE
MSCI*
CDP
FY2020 Evaluation
FY2022 Targets
Remarks
Selected for inclusion in
the World Index and
Asia Pacific Index
Same as FY2020
Stock index developed jointly by U.S.-based S&P and
Switzerland-based RobecoSAM. Evaluates corporate
sustainability from the perspectives of economy,
environment, and society.
Selected as a
component member of
FTSE4Good Index
Same as FY2020
Stock index managed by the U.K.-based FTSE. Evaluates
the initiatives and results of ESG management based on
benchmarks.
Selected as a compo-
nent member of the
Japan Empowering
Women Index (WIN)
Selected as a
component member of
the Japan ESG Select
Leaders Index
Stock index managed by the U.S.-based MSCI. An index
based on the performance of stocks around the world from
various perspectives. Examines and evaluates corporate
commitment to ESG.
B
A– and above
External evaluation for institutional investors managed by a
U.K-based NPO. Analyzes the corporate impact of CO2 on
the environment and climate change, evaluating the
company’s responses.
• We conducted accessibility propos-
• We identified concerns and strug-
• Local governments plan and hold
als for website construction by
gles of people with various disabili-
seminars for companies to promote
* THE INCLUSION OF ANA HOLDINGS INC. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT
CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF ANA HOLDINGS INC. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE
visually impaired parties
ties (hearing, vision, wheelchair
the understanding of disabilities
PROPERTY OF MSCI.
*4 Web usability consulting: Helping everyone to
obtain information from the web smoothly.
users, etc.) when using airport
and employment of people with
facilities and aircraft, and proposed
disabilities.
specific countermeasures.
MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.
Issuance of Sustainability-Linked Bonds
Toward Becoming an LGBT Friendly Airline Group
ANA has received the highest rating of “Gold” for the fifth consecutive year in the
LGBT index “PRIDE Index 2020” by the voluntary organization work with Pride*5
Under the ANA Group Diversity and Inclusion Declaration of April 2015, each employee has
deepened their understanding of LGBT issues, and we are working to promote a better under-
standing of these and provide an inclusive workplace environment within the group along with
our support for customer diversity.
We are promoting initiatives to achieve an inclusive society by distributing the ANA Group
LGBT Awareness Handbook and conducting training programs.
*5 work with Pride: A voluntary organization that supports the promotion and establishment of diversity management regarding LGBT
and other sexual minorities.
2
Human Resources Development to Support Sustainable Growth
We respect diversity in terms of age, nationality, gender, values, disabilities, etc., and promote a variety of human resources-
related initiatives so that we can use this diversity as a strength to bring about further change. More details are available on
page 72.
64
In June 2021, we issued Sustainability-Linked Bonds with Sustainability Performance Targets (SPTs) that reflect our efforts in four
material issues: Environment, Human Rights, Diversity and Inclusion (D&I), and Regional Revitalization.
If two or more of the four external evaluations regarding ESG described above (selected as SPTs) have not been achieved at the
end of fiscal 2022, we will make a donation to a generally certified entity that engages in activities to create positive impacts for the
environment and/or society. In addition to the group’s own ESG initiatives, we will create an additional positive impact by
supporting activities through donations.
In fiscal 2018, we issued Green Bonds as an initiative for environment. In fiscal 2019, we issued Social Bonds as an initiative for D&I.
Our Sustainability-Linked Bonds include the perspective of governance (G), as the results of the evaluations will be reflected in officer
remuneration. We established targets to be achieved for the themes of environment (E) and social (S), and we aim to achieve these
targets by making governance (G) function effectively.
We believe it is the responsibility of the group, which operates
globally, to contribute to the achievement of the SDGs through
ESG-conscious business activities. By addressing the four
material issues appropriately, we strive to enhance our
corporate value through the creation of both social value and
economic value.
Environment
Human Rights
Diversity and
Inclusion
Regional
Revitalization
E
Green Bonds
(Issued October 2018)
S
Social Bonds
(Issued May 2019)
Sustainability-Linked Bonds (Issued June 2021)
See our corporate website for more details.
https://www.anahd.co.jp/group/en/pr/202105/20210519.html
G
Corporate Governance
Progress toward SPTs Is a
Component of Officer Remuneration
65
Sustainability Initiatives
Business Foundations
Supporting Corporate Value
We work with ANA Group stakeholders,
aiming to share an added value that leads to a
brighter future. Today, we are building a foundation for
the appropriate allocation of management resources
and nimble management decision-making.
66
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67
ANA’s Sky Kitchen:
The Excitement of Travel,
While Staying Home
ANA began selling international route in-flight meals
online. Our managing chef developed a specially
designed menu for everyone to enjoy at home.
Safety
Strengthening Safety as a Business Foundation, Passing Down Safety as a Culture
Developing Human Resources that Embrace and Enhance Safety Culture
Safety is the unequivocal mission of every business in the ANA Group.
The ANA Group engages in ongoing education and training programs to preserve the memory of past accidents and hijackings in our
pursuit of safety. To prevent the spread of COVID-19, we currently use online technologies to hand down our culture of safety.
Solid Approach to Safety
Safety is the absolute value underlying every ANA Group corpo-
An environment of mutual understanding and trust form rela-
rate activity and the foundation of everything we do. Our dedica-
tionships among employees across various job descriptions to
tion to safety extends to every part of our group businesses,
support safe aircraft operations and other aspects of the ANA
even beyond our aircraft operations, including cargo, food ser-
Group business. In every workplace, we post the ANA Group
vices, and information. Our everyday efforts to improve safety
Safety Principles and Course of ANA Group Safety Action, which
and our conscientious response to customer expectations build
are pledges shared by all ANA Group employees.
confidence and trust with society.
ANA Group Safety Principles
Safety is our promise to the public
and is the foundation of our business.
Course of ANA Group Safety Action
(1) Strictly observe rules & regulations, and all actions will be grounded on safety.
(2) As a professional, place safety as the #1 priority while keeping your health in mind.
Safety is assured by an integrated management
(3) Address any questions and sincerely accept the opinions of others.
system and mutual respect.
(4) Information will be accurately reported and shared in a timely manner.
Safety is enhanced through individual
performance and dedication.
(5) Continuous self-improvement for prevention and avoiding reoccurrence.
(6) Lessons learned from experiences and increased skills for risk awareness.
ANA Group Medium-Term Safety Promotion Plan
In working toward higher levels of safety, we formulated the
FY2021-FY2025 ANA Group Medium-Term Safety Promotion
Core Safety Values
Plan as part of our efforts to accelerate the transformation nec-
(1) Build an organization that is resilient to change and innovation
essary to return to growth, while responding flexibly to the
(2) Pursue safety based on global standards
COVID-19 pandemic and a changing environment.
(3) Establish a culture of deep-rooted safety behavior
We defined matters of the highest priority as our core safety
(4) Foster core human resources who strive for safety
values, establishing three pillars on which to engage in specific
(5) Instill confidence in our customers and society regarding ANA
priority actions: (1) Sense of Safety for Our Customers, (2) Safety
Group safety
Structures, and (3) Safety Culture.
C
o
m
m
u
n
c
a
t
i
o
n
i
Sense of
Safety
Customer
Customer
Priority Actions for Safety (Three Pillars)
1. Sense of Safety for Our Customers
Disclose information and engage in greater dialogue with customers and
society regarding our safety efforts as we pursue ESG management
2. Safety Structures
• Work closely with code share, partner airlines to standardize and
raise the level of our safety foundation, including safety information,
safety rules, safety audits, safety education, and more
• Engage in stronger preventive measures and bring visibility to safety
through risk management and SPIs (Safety Performance Indicators)
• Strengthen initiatives in managing the Three Task Categories (First
Time Task, Procedure Changes, and Task After Extended Time Gap);
provide safety education and awareness activities via online and
on-demand technologies
3. Safety Culture
• Share specific examples of safety behaviors that embody safety
culture; pursue the practice of safety as a personal responsibility
Safety
Implementation of
Implementation of
Safety Measures
Safety Measures
Safety
Structures
Education /
Education /
Awareness
Awareness
Safety
Culture
ANA Group
ANA Group
68
Education Initiatives
ANA Group Safety Education Center (ASEC)
Total number of
participants:
8,5 09 (including online participation)
In 2019, we relocated ASEC to the newly built ANA Group Training Center (ANA Blue
Base). Under the three concepts of facing accidents, facing our own feelings, and facing
our colleagues, we provide safety education in which participants learn actively, leading
participants to practice safe behavior in the workplace.
We established on online training system in July 2020, and all group employees have
been taking the courses.
Emergency Aircraft Evacuation Training
Safety Forum Conducted by Senior Management
Total number of
participants:
3,941
Number of
forums:
39 Total number of
participants: 4,892 in total
This training is mandatory for all group employees to support
The ANA president & CEO and directors in charge of safety
cabin attendants, as well as to provide assistance and guid-
ance to passengers in the event of an aircraft emergency.
at ANA delivered safety-related lectures and engaged in
dialogue with employees online. Participants and leaders
discussed and shared thoughts on a wide range of topics.
Initiatives for Aviation Safety and Security Promotion Month
We observe the Aviation Safety and Security Promotion Month
every July, holding programs featuring seminars, presentations,
and awards related to safety.
We solicited case studies from our front lines, receiving
numerous submissions. From the submissions
received, we published a total of 16 case studies
on our corporate intranet highlighting safety and
quality improvement initiatives related to information
sharing, deficiency prevention, and recommendations
for safe behavior.
16
case studies
shared
Case Studies Published on the Corporate Intranet
69
Business Foundations Supporting Corporate Value
Safety
Building Stronger Sustainable Structures for Safety
ANA Group Response to COVID-19
The airline industry is undergoing major operational changes due
a. Each individual uses their foresight to anticipate risks
In June 2020, we launched the ANA Care Promise as a commitment to creating an environment that prevents infection
to the impact of COVID-19. For our part, we are creating a stron-
b. Employees share information on matters identified and
and protects the health of our passengers and staff in this time of the new normal. This initiative was the first in Asia to
ger structure to maintain safety, even as we adopt new and
respond to risks before beginning work
receive the highest COVID-19 Airline Safety Rating of 5-STAR awarded by SKYTRAX of the UK.
different mechanisms and procedures.
c. Employees use the assertion* method to respond appropri-
Peach employees are also working together on anti-infection initiatives, aiming to create a new standard in the skies.
ately with coworkers
We will continue sincere efforts to create safety-focused hygienic environments and services to deliver even greater
(1) Change Management as a Safety Management Method
d. If employees notice something unusual or dangerous, they
peace of mind to our customers.
to Prevent Organizational Errors
report it as a near-miss or other spontaneous incident
We adopted the following safety management methods to pre-
* Expressing opinions in a constructive and cooperative manner
vent organizational errors when changes occur in structures or
work flows.
a. Identify risk factors (hazards) in advance
b. Verify potential risks that may occur due to hazards
c. Take measures to reduce risks and then implement change
(2) Managing the Three Task Categories
We engage in consistent management of the Three Task
Categories (First Time Task, Procedure Changes, and Task After
Extended Time Gap), predicting related risks and taking mea-
sures to prevent unsettling events from occurring.
We strive to achieve safety and innovation through the organiza-
tional responses and individual actions noted above.
Management
Foundation
Safety
For Sustainable
Growth
Transformation
Ensuring Safety in Non-Air Operations
Information Safety
The ANA Group handles personal customer information in its
Food Safety
The ANA Group introduced the ANA Catering Quality Program
business. The company is revising its rules and security mea-
(ACQP), from the three aspects of food safety for hygienic in-
sures to strengthen personal information management systems
flight meals, the pursuit of delicious quality, and the safe, and the
and reduce the risk of information leaks, considering this
correct loading and unloading of goods on and off aircraft.
approach to be important initiative as safe flight operations.
Full-time auditors and chefs make regular visits to our catering
ANA has adopted the EU General Data Protection Regulation
contracts in Japan and around the world, offering guidance on
(GDPR), and the California Consumer Privacy Act. We also engage
improvements based on our own strict hygiene standards. We
in a timely manner with other personal information protection mea-
also engage regular external hygiene audits from third parties
sures being addressed in various countries. Further, the company
based on international standards. Results are reported to the
publishes its privacy policy on its corporate website. We also
group to maintain and improve quality. We also discuss the
respond appropriately to Japan’s revised Act on the Protection of
results regularly at board meetings, where decisions are made
Personal Information, which will take effect in fiscal 2022.
on the spot and implemented promptly to correct issues.
Furthermore, by providing information security training to
employees, we protect the safety of information in terms of both
tangible and intangible elements.
Poster Depicting Our Approach to Information Safety
Hygiene Audit of the In-Flight Meal Production Facility
at Haneda Airport
70
Enhanced Hygiene and Cleanliness
Hygiene and cleanliness are the core of our services. To strengthen our commitment even more, we signed a support agreement
on hygiene and cleanliness with Nihon Stery, Inc., a company that provides support services to medical facilities. Leveraging their
wide range of knowledge and we advice of experts, we will work to create safer and more comfortable air travel to meet the needs
of our customers in the post-COVID-19 era.
Major Initiatives
Inspection and Review of
Operational Procedures
Check the status and improve disinfection,
sterilization, and other operations at airports,
lounges, and in the aircraft. Review and improve
manuals.
Disinfectant Selection
Information Communications
Advice on the selection of disinfectants, etc.,
such as alcohol sheets and disinfectant solutions
Advice on the effects, messages, and expres-
sions related to hygiene and cleanliness when
publishing information on the ANA websites,
social media, etc.
Message from Nihon Stery, Inc.
We began collaborating and helping with ANA Care Promise initiatives in December 2020, leveraging
the knowledge and expertise of our group.
This was the first time we took on a project for the safety and hygiene of not only the ANA Group,
but also of their customers. We have been determined to make the project a success at all costs. We
have experienced the intense passion and dedication of everyone at the ANA Group. ANA Group
employees ask many questions regarding the proposals we make based on our expertise. They
scrutinize our activities through earnest discussions. We learn more every day as we review initiatives
based on evidence and make improvements that match the needs of the front lines of the airline
industry. While this challenging environment is likely to last for some time, we will continue to take on
challenges together with the ANA Group, co-creating new values in hygiene for the safety and security
of customers and employees.
(Left) SUZUKI Takeshi, Manager
(Right) HOTODA Akishige, Deputy General Manager
Nihon Stery, Inc. (H.U. Frontier, Inc.)
71
Business Foundations Supporting Corporate Value Human Resources
Achieving Sustainable Growth through Human Resources, the Greatest Asset of the ANA Group
We leverage the diversity of our employees to exhibit the comprehensive capabilities of
our group.
Basic Approach to Human Resources
Human resources are the greatest asset of the ANA Group. Our people are what allow us to respond to a rapidly changing social
environment and pursue Business Structure Reform, while continuing to take on the challenge to achieve sustainable growth.
We enhance corporate value through human resources development, as well as systems and frameworks that encourage every
Encouraging Employee Athletes
The ANA Group endorses the Ath-navi* program, which supports
Japanese athletes taking on global challenges. We have hired
athletes and support their athletic activities for seven consecutive
years since 2014.
A total of 25 athletes (as of July 1, 2021) work in the ANA Group,
and we strive to provide an environment in which top athletes can
continue to compete with confidence. At the same time, we believe
employee to demonstrate their individuality and contribute actively, from the day they join the group to the day they retire.
this program fosters a sense of unity among all employees.
OMOTO Rika, ANA
YAMASHITA Jun, ANA
MOTOHASHI Nako,
* The Japanese Olympic Committee (JOC) provides employment support counseling for top athletes.
ANA AIRPORT SERVICES
Co., Ltd.
Establishing a Mechanism for Sustainable Growth Focused On and Inspired by Our People
Human Resources
Diversity and
Inclusion (D&I)
Ease of Work
Fulfillment of Work
ANA’s Way
Improved Engagement
Digital
Enhanced
Basic Quality
Enhanced
Productivity
Generating
Innovation
Improved
Customer
Satisfaction
Improved
Corporate
Value
Sustainable
Growth
Mechanisms to Pass On the ANA Group Identity
We strive to instill an understanding of our Mission Statement, Management Vision, and ANA’s Way as embedded parts of our
corporate culture, encouraging organizational and human development for each employee to embody the ANA Group identity.
Promoting ANA’s Way
ANA’s Day Training
• Share values that resonate with ANA
Good Job Card
• Launched in 2001 as a tool to foster
Group employees
a culture of mutual appreciation and
• Reflect on past accidents and gain a
respect
ANA’s Way Survey
(Employee Satisfaction Survey)
• Conducted once in fiscal 2020
(across 44 companies, response
renewed understanding of safety
• Messages are sent to colleagues in
rate: 96.9 %)
• Return to our founding philosophy of
other group companies or divisions
• Covered five subjects from ANA’s
Wakyo (close cooperation) and
via a dedicated website
Way and asked questions related to
“Hardship Now, Yet Hope for the
• Messages sent in fiscal 2020:
engagement
Future”
840,000 (ANA Group)
• Think about the future of the ANA
Group with colleagues from other
group companies
• Analysis conducted of organizational
issues across the group and at each
company/division; appropriate
response measures considered and
implemented
ANA Blue Monsters
Due to the COVID-19 pandemic, there have been fewer opportunities for children to play sports. This trend
could lead to social issues, including fewer local community sports, an increase in mental and physical
imbalances among children, and fewer opportunities to learn about one’s own strengths in life. In response to
these issues, we launched the ANA Blue Monsters Kids Career Program as a new venture that resolves social
issues through sports. Employee athletes are in charge of planning and supervision, providing cross-cultural
exchange, dietary education, body core training, and sports strategy training. The program helps kids acquire
the skills necessary for both sports and business, fostering the ability for children to pursue their own futures.
Online Training and Education
Diversity and Inclusion (D&I) Promotion
After presenting “The ANA Group Diversity and Inclusion Promise” (D&I Promise) in 2015, we have been promoting D&I as one of
the key pillars within our management strategy. We strive for new value creation and sustainable growth by respecting the diversity
of our employees, creating an environment in which each employee can maximize their strengths, and fostering a corporate culture
in which everyone can work with enthusiasm and motivation.
Women in Leadership
Positive Action Plan
In addition to establishing systems to support diverse work styles according to life stages and career plans, we are working to increase
the ratio of female executives and managers, which is an issue in Japanese society.
In March 2021, we reached a deadline for achieving the three numerical targets set in our Positive Action Plan (announced in 2014).
2014–2020 Positive Action Plan (ANA)
Item
Targets
FY2020
Number of female executives
Ratio of female managers
Ratio of female managers in
office administration /
cabin attendants organizations
2 or more
6
Achieved
15% or more
30% or more
15.8%
Achieved
29.2%
Not achieved
Participation in International Air Transport Association (IATA) Initiatives
The importance of diversity in management is increasing on a global level, and we are seeing new movements in the airline industry.
In November 2020, ANA became the first Japanese airline to join the IATA’s 25by2025 Campaign, which is a global initiative to improve
female representation in the aviation industry. The goal of 25by2025 is to increase female representation in senior positions and in areas
where women are traditionally under-represented, such as flight crew and mechanics, by 25% by 2025.
72
73
Business Foundations Supporting Corporate Value
Human Resources
Future Targets
In June 2021, ANA and the ANA Group set new medium-term goals
in regard to women in leadership positions. We aim to achieve
women’s ratio in senior positions to reach 30% as early as possible
in the 2020s.
Although ANA Group companies have different working
environments, personnel structures, and male-to-female ratio,
we will continue to develop suitable personnel systems and support
at workplaces to promote the advancement of women.
We will also monitor KPIs periodically to confirm the progress and
to take proper actions to resolve issues.
New Goals to Achieve as Early as
Possible in the 2020s
Ratio of
female executives
30%
As of April 2021 ANA Group
ANA
9.7%
14.6%
Ratio of
female managers
30%
As of April 2021 ANA Group 17.2%
17.0%
ANA
The ANA Group encourages flexible and new work styles that
Percentage of Employees Taking Paternity Leave (ANA)
Paternity Leave System
allow a diverse range of employees to contribute actively, regard-
less of gender or generation. We are working to increase the
percentage of male employees who take paternity leave, so the
(%)
15
burden of housework and childcare can be shared equally
among family members. In addition to providing information to
10
eligible employees through the company intranet, handbooks,
and seminars, we intend to communicate more effectively to
supervisors and workplace colleagues to promote a better
understanding of work-life balance.
5
0
2016
2017
2018
2019
2020
Groupwide Awareness
In December 2020, we held the sixth ANA Group D&I Forum. Under the theme,
“Diversity is a Fact, Inclusion is an Act,” 37 CEOs of ANA Group companies shared their
views on D&I and led integrated activities together with members of ANA Group
D&I Working Team.
ANA Group D&I Initiatives
In response to the global COVID-19 pandemic and rapid changes in our society, the ANA Group is now
working on structural reforms together with the transition to new work styles which enables us to provide
new value to customers in a more efficient manner.
We believe “Diversity & Inclusion” and “Engagement” are two essential factors when our diverse
employees fulfill one’s potential with their specialties and capabilities beyond organizational boundaries
or attributions.
Our goal is to create a corporate culture that welcomes the new value or the innovative mindset which
diversity creates and allows employees to feel equity in the workplace as well.
Our ultimate goal is to provide more safe and delightful experiences for our customers, and to contrib-
ute to a better society.
TANEIE Jun
Executive Vice President
Group Diversity & Inclusion Promotion
ANA HOLDINGS INC.
Health Management
The ANA Group made the ANA Group Health Management Declaration in April 2016. Our employees are the engine that drives
sustainable growth together with society, and it is our employees who embody the motto, Trustworthy, Heartwarming, Energetic!
We encourage Quality of Life (QOL) and improved corporate value through employees who engage in their work in physical health,
mental health, and passion.
Implementation Structure
The ANA Group has appointed a Chief Wellness Officer who is a director responsible for health management. We also appoint Wellness
Leaders at each group company. Through this leadership framework, the ANA Group ensures that group employees, companies, and
health insurance associations work in unison for health management. As a result of groupwide efforts, seven companies, including ANA
AIRPORT SERVICES Co., Ltd., ANA CHUBU AIRPORT, and ANA OSAKA AIRPORT, were named Certified Health & Productivity
Management Organization Recognition Program (White 500) companies in fiscal 2021. Four other companies were named Certified
Health & Productivity Management Organization Recognition Program companies, including ANA New Chitose Airport.
P.83 External Recognition
Four Perspectives
The ANA Group aims to maintain and improve the physical and mental health of our employees, creating an environment that
encourages long careers. Focusing on Four Perspectives, we engage in in regular situational monitoring, while analyzing and
responding to positive impacts and challenges.
1 Health Management
2 Safety and Health Initiatives
• Create an environment for health management throughout the group
• Develop safe, secure workplace environments and engage in cross-
organizational education activities
3 Mental Health
4 Disease Prevention
• Implement related measures groupwide and provide occupational health
staff and workplace follow-up
• Establish and monitor health management indicators
• Strengthen cancer-prevention measures and adopt policies regarding
women-specific diseases
Health Maintenance under the COVID-19 Pandemic
The results of our employee health survey reflected concerns by many employees about (1) lack of exercise and physical ailments
and (2) mental health. Responding to changes in the living and working environment has become an urgent issue.
Mental Initiatives
As the social environment changes, healthy minds become an even more
Physical Initiatives
We sponsored various online seminars to alleviate the lack of exercise and to
important factor in the QOL and work. The ANA Group has introduced mea-
provide more education regarding physical fitness, creating a greater environ-
sures and e-learning courses in line with the four types of mental healthcare
ment for self-management.
described in the Ministry of Health, Labour and Welfare’s Guidelines for
• Dietary seminars given by nutritionists
Maintaining and Improving Workers’ Mental Health.
• Seminars on how to prevent injury by developing flexibility
• Special meals delivered in honor of Vegetable Day (August 31), etc.
Care through External
Consultation Desks
Consultations through external
specialists
Care through Occupational
Health Staff
Health consultations though
industrial physicians / nurses
Care by Line
Supervisors
Self-Care
Managers address mental health
problems, including workplace
environment and active
communication improvements
Self-awareness through stress
checks, voluntary consultations
74
75
Business Foundations Supporting Corporate Value
Human Resources
The Power of People
in the ANA Group
Built on a foundation of security and trust,
“the wings within ourselves” help to fulfill the
hopes and dreams of an interconnected world.
The phrase, the “wings within ourselves” from our Mission Statement represents the
strong desire of each employee to become wings, connecting people, goods, and
emotions. In addition to fulfilling our mission as a provider of public transportation,
we continue to strive and take on challenges through flexible approaches.
Using the Airbus A380
ANA FLYING HONU and
Other Aircraft
While restrictions on travel outside the home and leisure travel continue under the
COVID-19 pandemic, we have received many comments from customers who are
eager to travel overseas as soon as possible or travel by airplane. The ANA Group
sponsored the Akindo Suggestion Program, aiming to leverage the wisdom of our
employees in raising our top line and delivering to customers their desired prod-
ucts and services, even in the face of COVID-19. The following are a few of the
ideas we received that became new projects with the backing of employees from
across the group.
Airbus A380 HONU Sightseeing Charter
THE WEDDING with ANA: In-Flight Wedding
We held private THE WEDDING with ANA: Aircraft Weddings in May
and June 2021, using an aircraft from ANA international routes.
The wedding package was a joint offering by ANA and SKY
WEDDING HANEDA, operated by Hasegawa S.T. The ceremonies
began with a bride’s entrance and photo session conducted by
ANA Group employees at the international terminal. On board the
plane, the bride and groom were congratulated on their new start
with a marriage certificate signed by the flight crew and a congratu-
latory message in the style of in-flight announcements by the cabin
attendants. We helped create once-in-a-lifetime memories at air-
Photo Courtesy of Hasegawa S.T.
ports and inside our aircraft cabin space, the closest most can
come to overseas travel at this time.
ANA’s Restaurant HANEDA
Between March and June 2021, we used international
aircraft (Boeing 777-300ER) parked on the ground to
offer customers an opportunity to experience ANA
international first and business class service.
Meals and services normally only available on inter-
national long-haul flights were recreated in a parked
aircraft and offered in the limited-time restaurant.
Secondments Outside the ANA Group
In response to the decline in passenger demand due to COVID-19, the ANA Group formulated our Business Structure Reform in
October 2020. We designed this plan to become smaller and pass through to the far side of the COVID-19 tunnel, incorporating mea-
sures that included protecting jobs. We also expanded secondments outside the group under this plan. Since the initial media cover-
We conducted a total of 18 sightseeing flights using the Airbus A380 ANA FLYING HONU (as of June 2021). We began with flights
age, we have received inquiries from many companies and organizations about accepting our employees.
leaving and returning to Narita Airport in August 2020, helping customers enjoy the feeling of being in Hawaii while still in Japan.
Approximately 1,150 ANA Group employees (as of July 1, 2021) have been seconded to approximately 250 companies and organi-
Hoping to help our customers create their own special summer memories in the time of COVID-19, we provided Hawaiian-
zations in a variety of fields, including temporary staffing, retail, and telecommunications.
style staging inside the aircraft, a raffle, original souvenirs, and more, offering the excitement and fun of travel on the HONU.
The ANA Group aims to create new value and achieve sustainable growth together with society, leveraging human resources, our
The HONU Charter flight was so popular that we continued the project, adding Christmas flights and regional events.
greatest asset, to contribute to these companies through individual character and skill, while bringing the job experiences from these
companies back to the ANA Group.
Comments from a Seconded Employee
I am currently on secondment to a telecommunications company. Much in the same way that ANA is a
public transportation company, telecommunications companies are responsible for the social infrastruc-
ture as a public network provider, which I find very rewarding.
Right now, I work in a department that plans employee training, and I am mainly in charge of training
according to experience level for career development.
This is my first experience with such work, but with the support of my colleagues, I am learning to
think about things more deeply as I consider training objectives and create curriculum. Every day I work
harder to make even better materials.
I will continue to contribute to the best of my abilities throughout my secondment period, relying on
the training, the experience using work tablets, and the communications skills when meeting new people
that I have learned at ANA.
TESHIGAWARA Yui (ANA)
Secondment to a Major
Telecommunications Company
76
77
Business Foundations Supporting Corporate Value
Risk Management
Preserve Corporate Value through Safe and Reliable Business Operations
The ANA Group takes steps to identify, analyze, and appropriately address risks with the
potential to severely impact management. In addition, we have developed groupwide frame-
works to minimize the impact of risks and prevent reoccurrence in case risks materialize.
Risk Management Structure
The ANA Group Total Risk Management Regulations provides
General
Determine Basic Policies
Board of Directors
the basic terms of the group’s risk management system. Under
these regulations, the Group ESG Management Promotion
Committee develops and implements basic policies. These
policies are executed in line with the basic policies determined
by the board of directors. Each group company / department
has established a risk management system. Here, the ESG
General
Formulate and
Issue Basic Policies
Monitor Response Status
Group ESG Management
Promotion Committee
General
Supervise
Risk Management
Chief ESG Promotion Officer
(CEPO)
Promotion Officer (EPO) and the ESG Promotion Leader (EPL)
are responsible for promoting and leading risk management
operations, respectively. Each EPL assumes a role to conduct
Preventive
Measures
Identify Risks
Analyze and Evaluate
Consider Response
Measures
Implement and Monitor
risk management (risk prevention) operations according to
plans and take swift action while working with the secretariat in
the event of a crisis.
Crisis
Response
Collect Information
Implement Initial Response
Determine Causes
Formulate Measures to
Prevent Reoccurrence
General Administration
Risk Management Team
ESG Promotion Officer
(EPO)
EPO
EPO
ESG Promotion Leader
(EPL)
EPL
EPL
Group
Company A
Group
Company B
Group
Company C
Major Initiatives
Share Information With EPLs
We provide newly appointed EPLs with organizational risk
rules to comply with domestic and international laws and
regulations regarding personal information and privacy. We
management training. During regular meetings, EPLs share
are also preparing to comply with the 2022 revision of
case studies and provide instructions on measures that need
Japan’s Act on the Protection of Personal Information.
Cybersecurity Measures
The ANA Group is designated as a critical infrastructure provider in Japan by the National Center of Incident Readiness and Strategy
for Cybersecurity (NISC). We implement security measures at entrance and exit control, and we have adopted anti virus measures in
accordance with the guidelines formulated by the Ministry of Economy, Trade and Industry (METI). We monitor our security system
24 hours a day, 365 days a year. The ANA Group trains security personnel, and we have established the Computer Security Incident
Response Team (CSIRT) to ensure swift action in response to any incidents.
Cybersecurity intelligence is most effective when providing early alerts to counter cyberattacks. Therefore, we participate in informa-
tion sharing organizations, such as the Aviation Information Sharing and Analysis Center (A-ISAC), which consists of airline, aircraft man-
ufacturer, and other members. We also participate in the Surface Transportation Information Sharing and Analysis Center (ST-ISAC). In
these ways, we acquire information from internal and external industry sources as early as possible for use in taking preventive
measures.
We are working on response measures, understanding that cybersecurity incidents are bound to occur. At the same time, we have
adopted a Zero-Trust approach based on TRUST (i.e., communication with trusted people and objects based on authentication) as we
pursue digital transformation in ANA Group services and products, including as Mobility as a Service (Maas) and ANA Super app.
In addition, we intend to work even more closely with relevant ministries and agencies, economic organizations such as Keidanren,
and private security organizations such as ISAC; to improve security between supply chains in today’s society, which is connected
across all manner of business industries and sectors.
Responses to COVID-19 (Employee Infection Prevention Measures)
The ANA Group created a response system based on the Crisis Management Manual and the Emergency Response Manual in
late January 2020, when the COVID-19 infection began to spread. We have endeavored to prevent the spread of infection. For
example, when a physician identifies an employee who is suspected of infection, we notify the relevant employee and employees
who are likely to have been in contact, directing them to stay home and wait for instructions from the public health center.
In addition to the above, we continue to implement measures to prevent infection among employees, including the following.
• Inform all group employees immediately of policies and instruc-
• Make a habit of avoiding the Three Cs (Closed spaces,
tions issued by the government and local authorities; implement
Crowded places, and Close-contact settings)
to be strengthened. Under this system, EPLs provide
We require every employee to receive e-learning training
response measures completely
• Check employee health on a consistent basis before reporting
instructions and responses within their respective companies.
on the importance of information assets and proper
• Ensure all group employees have an understanding of
to and starting work
handling, etc. In so doing we ensure compliance with these
COVID-19
• Explore ways to work without coming to the office
Business Continuity Plan (BCP)
Our BCP details policies and procedures for responding to
laws, regulations, and rules for using our information
systems. In this way and others, we strive to raise
large-scale disasters to ensure the safety of customers and
employee awareness of the significance of information and
all ANA Group directors and employees, minimize the impact
inside and the workplace.
on management and on society as a whole, and resume
normal business operations as quickly as possible.
ANA actively participates in the development of guidelines for
Security Export Control*
The ANA Group exports the parts, chemicals, apparatuses,
Advanced Airport-Business Continuity Plan (A2-BCP) led by the
and other articles necessary for aircraft maintenance to
Ministry of Land, Infrastructure, Transport and Tourism (MLIT).
overseas airports and aircraft maintenance centers.
These guidelines address building airports resistant to natural
Certain articles have the potential to be adapted to create
disasters and participation is part of our efforts to strengthen
weapons. Accordingly, we practice rigorous security export
cooperation with airport administrators and other stakeholders.
control of exported articles.
Information Security
The ANA Group updates the group’s information security
regulations and implements the information security
A stringent security export control structure is maintained
through once-annual audits and trainings. These activities
target divisions that are considered exporters for being
directly involved in exporting as well as divisions that are
management system. Through this system, we strive to
involved due to handling customs clearance and other
improve information systems functions and implement
transportation-related processes.
security measures in line with the policies.
We are currently revising our privacy policies and internal
* Security export control is a term that refers to all regulations placed on exports
from Japan by the Foreign Exchange and Foreign Trade Act.
• Ensure employees comply with maintaining safe physical dis-
(e.g., remote work)
tances, wearing masks, and washing and disinfecting hands
• Segregate members into teams and avoid contact between
• Provide masks, gloves, protective eyewear, etc.
teams to minimize the impact of an outbreak
• Install alcohol disinfectant, sterilization sheets, acrylic panels,
• Ensure there is no discrimination against infected employees or
etc., in offices
employees suspected of having been infected
On June 13, 2021, the company began
COVID-19 vaccinations for employees.
Employees involved in international flight
operations were the first to be vaccinated,
followed on a voluntary basis by employees,
contractors, and employees at affiliated
companies.
Workplace Vaccinations (Haneda Airport)
Conference Room Equipped with Alcohol Disinfectant,
Sterilization Sheets, and Acrylic Panels
78
79
Business Foundations Supporting Corporate Value
Compliance
Maintain Corporate Value by Enhancing Internal Systems and
Further Instill Our Mission Statement
The ANA Group is taking steps to minimize exposure to legal risks and prevent incidents that
could diminish corporate value.
Compliance Implementation Structure
The ANA Group has developed a compliance structure based on the ANA Group Compliance Regulations to promote
compliance with laws, regulations, and other standards related to business activities. Under the Group ESG Management
Promotion Committee Regulations, each group company and department appoints an ESG Promotion Officer to drive
compliance at each company and an ESG Promotion Leader to drive compliance at each workplace. In this way, we ensure
stronger awareness of compliance throughout our group.
Major Initiatives
Legal Compliance Education
We conduct a variety of educational programs for every group
Information Dissemination
To spread awareness of compliance throughout the ANA
executive and employee to acquire correct knowledge of and
Group, we distribute e-mail and other newsletters on topics
exercise appropriate judgment related to various laws and
related to revisions to laws and regulations, as well as points of
regulations. We hold regular seminars on contract practices,
caution regarding labor and contract practices. We also post
labor practices, and laws and regulations related to air
manuals and guidelines for various laws, regulations, and rules
transportation, improving our familiarity with business-essential
on the compliance website on our intranet. In this way and
knowledge. Seminars on competition law, anti-bribery law, and
others, we provide an infrastructure where group executives
air transportation for group executives and employees working
and employees have access to such information at any time.
overseas are also available, focusing on minimizing legal risks
The website also accepts questions from employees regarding
Initiatives to Prevent Harassment
We provide various training and education programs to prevent
Internal Reporting System
Based on the ANA Group Rules for Handling Internal
workplace harassment including training for newly appointed
Reporting, we have set up a point of contact (ANA Alert)
managers. In addition, we established the ANA Group
both inside and outside the group (via a law firm) to collect
Harassment Prevention Regulations in response to the June 1,
compliance-related information and resolve any issues. The
2020 enactment of the Revised Comprehensive Promotion of
reporting system is available to all group executives,
Labor Measures Act, which stipulates mandatory measures to
employees, and temporary personnel involved in the
prevent power harassment. In addition, we provide harassment
group’s business. ANA Group retirees and executives and
education through e-learning for all group executives and
employees of our business partners may also use the
employees, and aim to deepen the correct understanding of
reporting system. We protect the privacy of the whistle-
harassment, and to create more comfortable work
blower and relevant parties, and assure that no punitive
environments throughout the group.
measures will be taken against those that seek consultation
or cooperate in confirming facts. This enables us to obtain
internal risk related information promptly and aids in self-
correction. In fiscal 2020, there were 192 reports within the
group, and the system has spread throughout the group as
a reliable and effective whistleblowing system. We are the
first company in the airline industry (at the time of registra-
tion on April 9, 2021) to be certified under the
Whistleblowing Compliance Management System (Self-
Declaration of Conformity)* of the Japan Consumer Affairs
Agency as a business in compliance with whistleblowing
compliance certification standards. These standards are
based on the Guidelines for Private Business Entities
Regarding the Development and Operation of
Whistleblowing Systems Based on the Whistleblower
Protection Act. We will continue to maintain a reliable and
effective whistleblowing system to prevent situations that
may lead to a decline in corporate value.
* Whistleblowing Compliance Management System (Self-Declaration of Conformity) is
a system introduced by the Japan Consumer Affairs Agency in February 2019. Under
this program, businesses evaluate their own whistleblowing systems in light of the
certification standards set by the agency, and apply for registration of the results with
the designated registration body. Registered businesses will be authorized to use the
WCMS (Whistleblowing Compliance Management System) logo mark.
globally. We also sponsor seminars tailored to topics and
laws and regulations, helping group executives and
E-Learning Materials
contents that reflect the needs of each group company and/or
employees make appropriate decisions in compliance with laws
department to foster a more legal-related competence. Due to
and regulations.
the impact of COVID-19 in fiscal 2020, we shifted to online
training from the conventional class sessions, which made it
easier for overseas participants to attend.
Compliance Website (Company Rules)
Strengthening Cooperation with Group
Companies and Overseas Branches
To strengthen the compliance structure across the entire group,
we have clarified the points of contact between our Legal &
Insurance Department, Group companies, and ANA overseas
branches, building and operating a structure facilitating two-
way communication.
Compliance Survey of Group Companies
Surveys on compliance at group companies are conducted
once each year. The survey consists of self-evaluations on
compliance to relevant laws and regulations as to assess issues
pertaining to each group company and to the entire group. We
conduct follow-ups with each company based on survey
results as necessary to resolve any issues.
Online Seminar
80
Compliance Website (Questions for the Legal & Insurance Department)
WCMS Certificate of
Registration
ANA Alert Poster (in Workplaces)
81
Business Foundations Supporting Corporate Value Responsible Dialogue with Stakeholders
The ANA Group conducts business activities through our relationships with stakeholders.
We engage in ongoing dialogue with stakeholders to build trust and offer peace of mind.
As we do so, we increase the effectiveness of our strategies by incorporating the
opinions and requests of stakeholders into our businesses.
Major Dialogues during Fiscal 2020
The 76th Ordinary General Meeting of Shareholders
(for institutional investors, analysts)
Financial results presentations
No. of attendees 447 Voting rights exercise ratio 62.9%
4 times (teleconferences)
Dialogue with
Shareholders and
Investors
Dialogue with institutional investors/analysts
266 times (122 in Japan/144 overseas)
(262 teleconferences/online meetings, 4 in-person meetings)
ANA Group officer town meetings
messages to employees
Broadcasts of ANA Group officer
No. of meetings 1,667
Participants total: Approx.32,000 people
* Numbers include online interactions
44 times
Content: Activity policies, response to COVID-19,
sustainability initiatives, financial
reporting, etc.
Communication with
Our Employees
SDGs seminar (online)
No. of Meetings 40 Participants 2,083 people
Dialogue with
Experts
Environment
Human rights
ESG investors
2 times
1 time
2 times (once via questionnaire)
Dialogue with
Business Partners
7times
Procurement policy briefings
Participation in community volunteer activities
(ANA NARITA ANA, AIRPORT SERVICES Co., Ltd.)
Dialogue with
Communities
No. of activities 36 Group employee participants: Approx.310 people
Volunteer cleanup, aviation classes,
crime prevention, etc.
External Recognition
Inclusion in ESG Indexes, etc.
• Dow Jones Sustainability World Index
• Dow Jones Sustainability Asia Pacific Index
• S&P Global Sustainability Awards 2021 - Gold Class
• FTSE4Good Index
• FTSE Blossom Japan Index
• MSCI Japan Empowering Women Index (WIN)*
*
Quality
• SKYTRAX COVID-19 Airline Safety Rating (ANA)
—Awarded first 5-STAR status in Asia
• FlightGlobal Decade of Airline Excellence Award 2020 (ANA)
—Airline Excellence Award for the Asia-Pacific Region
Management Strategy
• Japan Institute of Information Technology 38th IT Awards
• Nippon Kenko Kaigi, Ministry of Economy, Trade and Industry
IT Award for Excellence (Customer and Business Functions)
Certified Health and Productivity Management Organization
• Ministry of Health, Labour and Welfare
Recognition Program 2021
“Platinum Kurumin” Certified by the Ministry in Recognition of
(ANA CHITOSE AIRPORT CO., LTD., ANA AIRPORT SERVICES
Providing Superior Childcare Support
(ANA, ANA AIRPORT SERVICES Co., Ltd.)
Co., Ltd., ALL NIPPON AIRWAYS TRADING Co., Ltd.,
ANA Systems Co., Ltd.)
• Nippon Kenko Kaigi, Ministry of Economy, Trade and Industry
• Ministry of Economy, Trade and Industry
Certified Health and Productivity Management Organization
DX Certification
Recognition Program 2021 –White 500–
Noteworthy DX Companies 2021
(ANA HOLDINGS INC., ANA AIRPORT SERVICES Co., Ltd.,
• work with Pride PRIDE Index 2020
ANA OSAKA AIRPORT CO., LTD., ANA CHUBU AIRPORT CO.,
Gold Award (ANA)
LTD., ANA KANSAI AIRPORT CO., LTD., ANA OKINAWA
AIRPORT CO., LTD., ANA TELEMART CO., LTD., ANA Wing
Fellows Vie Oji Co., Ltd.)
シンボルマーク ＋ Digital Transformation Certification
Other
• Japan Sports Agency
Sports Yell Company 2021 (ANA, ANA TELEMART)
• Tokyo Metropolitan Government
Tokyo Metropolitan Government Sports Promotion Model
Company (ANA, ANA TELEMART)
* THE INCLUSION OF ANA HOLDINGS INC. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT
CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF ANA HOLDINGS INC. BY MSCI OR ANY OF ITS AFFILIATES.
THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI.
MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.
82
83
Business Foundations Supporting Corporate Value
Corporate Governance
Mission Statement
Built on a foundation of
security and trust, “the wings
within ourselves” help to fulfill the
hopes and dreams of an
interconnected world.
Corporate Governance System
Appointment /
Dismissal
Appointment /
Dismissal
Accounting Auditors
Account
auditing
Reporting
Personnel
Advisory
Committee
Remuneration
Advisory
Committee
Audit & Supervisory Board
Auditing
Reporting
Audit &
Supervisory Board
Members Office
The ANA Group aims to practice management that con-
tributes to value creation for our various stakeholders in
accordance with our Mission Statement and to promote
sustainable growth and enhance corporate value over the
long term. To accomplish this goal, ANA HOLDINGS INC.
plays the lead role in Group management for overall
policies and goal-setting, pursuing transparent, fair,
prompt, and effective decision-making. For this purpose,
we have built a corporate governance system and
work continuously to enhance governance within the
ANA Group.
ANA HOLDINGS Corporate Governance System
Holding Company
Structure
The ANA Group has adopted a holding
company structure to remain competitive
in any challenging business environment.
Each Group company is guided by expe-
rienced and specialized personnel who
are delegated authority to operate their
respective businesses.
Company with Audit &
Supervisory Board Members
The board of directors and members of
the Audit & Supervisory Board oversee
and audit the execution of duties by
directors. The group strengthens the
supervisory function of the board of
directors by appointing outside directors.
We also strengthen the audit function of
members of the Audit & Supervisory
Board by appointing full-time outside
members.
Corporate Executive
Officer System
The group has adopted a corporate
executive officer system under which
management and executive functions are
separated to promote efficient decision-
making and to clarify responsibilities and
authority in the execution of duties. Under
this system, directors supervise manage-
ment decision-making and the execution
of duties, while corporate executive
officers conduct day-to-day business.
General Meeting of Shareholders
Board of Directors
Group Management Committee
Appointment / Dismissal
Board of Directors
Advice
Appointment /
Dismissal
Supervision
Proposal / Report
Proposal / Report
President & Chief
Executive Officer
Group Management
Committee
Reporting
Overall management
Proposal / Report
Group ESG Management Promotion Committee
Number of
Board Members
Directors 10
(including 3 independent outside
directors and 1 female director)
Audit & Supervisory
Board members 5
Term of Office
1 year
(also applies to
outside directors)
Number of
Meetings*
12
Number of Meetings*
79
The board of directors of ANA HOLDINGS INC. sets groupwide man-
agement policies and goals, while also overseeing the management and
business execution of each Group company. The board of directors is
chaired by the chairman of the board. All directors, including outside
directors, and all members of the Audit & Supervisory Board, including
outside members, participate in board meetings.
Chaired by the president and CEO, the Group Management Committee
consists of full-time directors, full-time Audit & Supervisory Board mem-
bers, and others, and functions as an organization that complements
the board of directors. The role of the committee is to provide more
timely and detailed discussions of management matters.
Internal Audit Division
Instruction / Supervision
Advisory Committees
Chief ESG Promotion Officer
Director in charge of Corporate Sustainability
Internal auditing
Instruction / Supervision
Secretariat
Corporate Sustainability
General Administration
Legal & Insurance
Group Companies and
Divisions
ESG Promotion Officers / Leaders
Responsible for ESG promotion in each company / department
(As of July 31, 2021)
Personnel Advisory Committee
Remuneration Advisory Committee
Chairman
Number of
Members
Number of
Meetings*
Chairman
Number of
Members
Number of
Meetings*
YAMAMOTO Ado
4
4
YAMAMOTO Ado
6
3
The Personnel Advisory Committee discusses the selection of director
candidates and the dismissal of directors, and reports to the board of
directors. The Personnel Advisory Committee, chaired by an outside
director, consists of three outside directors and one inside director to
ensure transparency and fairness in the selection process of directors.
The Remuneration Advisory Committee consists of a majority of outside
directors, outside Audit & Supervisory Board members, and outside
experts to ensure fair and transparent process of decision-making
related to director remuneration. The committee develops the director
remuneration system and director remuneration standards based on
surveys of director remuneration at other companies provided by out-
side experts and reports to the board of directors.
Audit & Supervisory Board
Number of Members
Audit & Supervisory
Board members 5
(including 3 independent outside
Audit & Supervisory Board members)
Term of Office
4 years
(also applies to
outside Audit &
Supervisory Board
members)
* The number of meetings held in fiscal 2020.
Number of
Meetings*
13
To ensure healthy development and to earn greater levels of trust from
society through audits, we appoint five individuals to serve as Audit &
Supervisory Board members who possess extensive experience and the
advanced expertise required to conduct audits.
The Audit & Supervisory Board strengthens the collaboration with the
accounting auditors and the Internal Audit Division. The board also
exchanges opinions with outside directors on a regular basis.
84
85
Business Foundations Supporting Corporate Value
Management Members: Directors
As of July 31, 2021
7
6
5
8
9
10
3
1
2
4
Name
Independent
Directors
Brief Personal History
Position and Assignments
Corporate Management,
Experience as Leader
Airlines Business, Safety
Personnel, Human
Resources Development
Finance, Accounting
Legal, ESG,
Risk Management
Technology, Innovation
Global and
Long-Term Strategy
Special Knowledge, Experience, and Skills
1 ITO Shinichiro
2004: Executive Vice President
2017: Chairman of the Board (present)
Chairman of the Board
Chairman of the Board of Directors
2 KATANOZAKA Shinya
2011: Executive Vice President
2015: President & Chief Executive Officer,
Representative Director (present)
President & Chief Executive Officer, Representative Director
Chairman of the ANA Group Management Committee, Head of Group ESG Management
Promotion Committee, In charge of the Internal Audit Division
3 SHIBATA Koji
4 HIRAKO Yuji
2020: Member of the Board of Directors
2021: Representative Director (present)
Executive Vice President, Representative Director
In charge of Corporate Strategy, Corporate Communications and Branding,
Facilities Planning, Digital Design Lab, Okinawa Region
2015: Member of the Board of Directors
(present)
Member of the Board of Directors
(President & Chief Executive Officer, ALL NIPPON AIRWAYS CO., LTD.)
5 TAKADA Naoto
2017: Member of the Board of Directors
(present)
Executive Vice President
Chairman of Group ESG Management Promotion Committee; In charge of Legal & Insurance, General
Administration, Corporate Sustainability, Government & Industrial Affairs and Executive Secretariat
6 FUKUZAWA Ichiro
2019: Member of the Board of Directors
(present)
Executive Vice President
Chief Financial Officer, In charge of Procurement
7 MITSUKURA Tatsuhiko
2021: Member of the Board of Directors
(present)
Executive Vice President
In charge of Group IT Management, Human Resources Strategy, D&I Promotion
8 YAMAMOTO Ado
2013: Member of the Board of Directors
(present)
Outside Director
9 KOBAYASHI Izumi
2013: Member of the Board of Directors
(present)
Outside Director
10 KATSU Eijiro
2020: Member of the Board of Directors
(present)
Outside Director
86
87
Business Foundations Supporting Corporate Value Appointment of Directors
Approach to Selection of Director Candidates
Major Concurrent Positions
Reasons for Appointment
Internal
Directors
The Company selects directors from among candidates who have impeccable character, extensive experience,
broad insight, and advanced expertise. Ideal candidates have the potential to contribute to improved policy-making,
decision-making, and oversight befitting a global airline group with widespread businesses centered on the Air
Transportation Business. Our selection is made without regard to gender, nationality, or other such factors, and falls
within the scope of the Civil Aeronautics Act and other relevant laws.
The group selects a multiple number of outside directors who possess practical viewpoints based on extensive
Outside
Directors
experience in corporate management, or who possess unique global or regional viewpoints. These individuals must
be independent from the Company, and able to offer objective and expert opinions based on a sophisticated knowl-
edge of social and economic trends.
Reasons for Appointment of Directors
• • The following director candidates were selected based on the judgment that their abundant experience, performance, and insight
would be crucial to overcoming the management crisis caused by the current COVID-19 pandemic and for achieving sustainable
increases in Group corporate value.
• • These director candidates assumed their positions after being appointed at the 76th Ordinary General Meeting of Shareholders.
Major Concurrent Positions
Reasons for Appointment
ITO Shinichiro
Chairman of the Board
Chairman of the Board of
Directors
Outside Director,
Mitsui Fudosan Co., Ltd.
KATANOZAKA Shinya
President &
Chief Executive Officer,
Vice Chair, Keidanren
(Japan Business Federation)
Outside Director,
Representative Director
Tokio Marine Holdings, inc.
SHIBATA Koji
Executive Vice President,
Representative Director
Outside Director,
Japan Airport Terminal Co. Ltd.
Outside Director,
Airport Facilities Co., Ltd.
ITO Shinichiro has extensive experience in sales, human resources, and other disci-
plines. After being appointed president & CEO in April 2009, he guided the ANA
Group through the challenging business environment left in the wake of the Lehman
Shock, introducing management reforms, and expanding the group’s revenue base
to support a successful performance recovery. Since April 2015, Mr. Ito has served
as chairman and chairman of the board of directors, working to strengthen the
functions of the board by promoting proceedings that encourage free, open-minded,
and constructive discussions and exchange of opinions.
KATANOZAKA Shinya has extensive experience in sales, human resources, corpo-
rate planning, and other disciplines. He was appointed representative director and
president & CEO in April 2015. Under his uncompromising stance on safety, he has
established a stronger foundation for Group business management. At the same
time, the group has implemented a growth strategy, achieving a profit growth for four
consecutive years. While always maintaining a global perspective, he has endeav-
ored to strengthen the decision-making and supervisory functions of the board of
directors. In addition, Mr. Katanozaka moved immediately to secure liquidity on hand
in the wake of the outbreak of COVID-19, and took the lead quickly in putting
together the Business Structure Reform plan in coordination with stakeholders to
lead the group back to a growth trajectory.
SHIBATA Koji has been involved in sales and international alliances for many years.
As a corporate executive officer since June 2020, and as representative director and
executive vice president since April 2021, he has been in charge of the planning and
execution of Group Corporate Strategy, pursuing Group management and providing
appropriate support to the president & CEO in promoting Business Structure
Reform. Mr. Shibata contributes to strengthening the decision-making and supervi-
sory functions of the board of directors by leveraging his extensive experience and
achievements over his career.
HIRAKO Yuji
Member of the Board of
Directors
President & Chief Executive
Officer,
ALL NIPPON AIRWAYS
CO., LTD.
Chairman of All Japan Air
Transport and Service
Association Co., Ltd.
HIRAKO Yuji has been involved in sales and finance divisions for many years. In April
2017, he was appointed president & CEO of ALL NIPPON AIRWAYS CO., LTD., a
core subsidiary of the ANA Group. Since that time, he has guided the company with
an uncompromising stance on safety and a focus on global business by leveraging
his extensive knowledge of the international airline business, leading the company
toward becoming the world’s leading airline. Mr. Hirako contributes to strengthening
the decision-making and supervisory functions of the board of directors by leverag-
ing his extensive experience and achievements over his career.
I
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e
r
n
a
l
D
i
r
e
c
t
o
r
s
88
I
n
t
e
r
n
a
l
D
i
r
e
c
t
o
r
s
i
O
u
t
s
d
e
D
i
r
e
c
t
o
r
s
TAKADA Naoto
Executive Vice President
FUKUZAWA Ichiro
Executive Vice President
MITSUKURA Tatsuhiko
Executive Vice President
TAKADA Naoto has been involved in the employee relations, industrial policy, and
public relations divisions for many years. Since April 2019, he has been in charge of
the human resources division as a corporate executive officer, working on Group
human resources development and other matters. Since April 2021, he has been in
charge of the executive secretariat, general administration, legal affairs, corporate
social responsibility (CSR), and risk management as executive vice president. Mr.
Takada strives to collection information from within and outside the group as he
contributes to strengthening the decision-making and supervisory functions of the
board of directors by leveraging his extensive experience and achievements over his
career.
Since June 2019, FUKUZAWA Ichiro has served as director and chief financial offi-
cer. In April 2021, he was named executive vice president and chief financial officer,
responsible for securing a stable financial base for the group and for implementing
financial strategies, including efficient capital restructuring. While assisting the presi-
dent & CEO in each of the group’s businesses, Mr. Fukuzawa has endeavored per-
sonally to engage in active dialogue with domestic and overseas institutional
investors. Further, as chief financial officer, he has worked to secure sufficient liquid-
ity on hand for the group, despite the significant impact of COVID-19.
Since April 2015, MITSUKURA Tatsuhiko has served as director and general man-
ager of the Maintenance Center for ALL NIPPON AIRWAYS CO., LTD., where he has
been responsible to ensure safe operations. As an executive officer in charge of the
group maintenance and technology division beginning in April 2019, and as the chief
safety officer of ALL NIPPON AIRWAYS since April 2021, Mr. Mitsukura has pursued
safety and security activities, as well as has taken initiatives in IT, human resources
strategy, and D&I.
YAMAMOTO Ado
Independent Outside Director
Major Concurrent Positions
Reasons for Appointment
Chairman and
Representative Director,
Nagoya Railroad Co., Ltd.
Outside Director,
Chubu-Nippon Broadcasting
Co., Ltd.
Chairman, Nagoya Chamber of
Commerce & Industry
YAMAMOTO Ado has a wealth of experience and expertise in transportation industry
management. At meetings of the board of directors, he offers the benefit of his
background to provide opinions and advice about responses to COVID-19, Group
Corporate Strategy, Business Structure Reform, risk management, investment
management, and other matters.
Mr. Yamamoto was appointed member of the Remuneration Advisory Committee
and the Personnel Advisory Committee in June 2016. In June 2020, he was
appointed chair of the Remuneration Advisory Committee and Personnel Advisory
Committee.
KOBAYASHI Izumi
Independent Outside Director
Outside Director,
Mitsui & Co., Ltd.
Outside Director,
Mizuho Financial Group, Inc.
Outside Director,
OMRON Corporation
KATSU Eijiro
Independent Outside Director
President and Representative
Director and Co-CEO and COO,
Internet Initiative Japan Inc.
KOBAYASHI Izumi has a wealth of experience and expertise as a representative for
private financial institutions and international development and finance institutions,
as well as an outside director for other operating companies. At meetings of the
board of directors, she offers the benefit of her background to provide opinions and
advice on responses to COVID-19, as well as on Group Corporate Strategy, risk
management, investment management, corporate sustainability, and organizational
management from a global perspective.
Ms. Kobayashi was appointed as a member of the Remuneration Advisory
Committee in July 2013 and a member of the Personnel Advisory Committee in June
2016.
KATSU Eijiro has provided opinions and recommendations on issues such as
responses to COVID-19, Business Structure Reform, risk management, corporate
sustainability, and cybersecurity based on a high level of insight due to his experi-
ence as a government official, including his tenure as vice minister of finance and his
extensive experience in ICT company management.
Mr. Katsu was appointed as a member of the Remuneration Advisory Committee
and the Personnel Advisory Committee in June 2020.
89
Business Foundations Supporting Corporate Value
Management Members: Audit & Supervisory Board Members
Fiscal 2020 Initiatives
As of July 31, 2021
Approach to Selection of Candidates for Audit & Supervisory Board Member
Major Agenda Items for the Board of Directors (Fiscal 2020)
Audit &
Supervisory
Board
Members
To ensure healthy development and to earn greater levels of trust from society through audits, the Company
appoints individuals to Audit & Supervisory Board members from both inside and outside the Company who pos-
sess extensive experience and the advanced expertise required to conduct audits. Our selections do not consider
gender, nationality, or other factors. The Company appoints at least one individual who possesses appropriate
levels of knowledge related to finance and accounting.
Outside Audit & Supervisory Board members are selected from among candidates who have advanced levels of
knowledge in a variety of areas and who are independent of the ANA Group. These individuals include candidates
who are well-versed in corporate management, candidates who have sophisticated knowledge of social and eco-
nomic trends, and candidates who have advanced knowledge in finance, accounting, or legal matters.
KANO Nozomu*
NAGAMINE Toyoyuki
MIURA Akihiko
MATSUO Shingo*
OGAWA Eiji*
Outside Audit & Supervisory
Audit & Supervisory
Board Member
Board Member
Audit & Supervisory
Board Member
Outside Audit & Supervisory
Outside Audit & Supervisory
Board Member
Board Member
* Independent Audit & Supervisory Board members
Reasons for Appointment of Audit & Supervisory Board Members
Mr. MIURA Akihiko was elected at the 76th General Meeting of Shareholders.
MIURA Akihiko
Outside Audit &
Supervisory Board Member
B
o
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d
M
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A
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&
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i
MIURA Akihiko has been involved in maintenance, procurement, and corporate planning divisions for many
years. He has extensive knowledge and experience in the airline business, as well as in technical areas such as
safety assurance. We nominated Mr. Miura as a new candidate for member of the Audit & Supervisory Board
due to his extensive experience in the airlines industry. We believe his perspective and knowledge as an engi-
neer will further enhance our audit function as the group aims to improve corporate value on a continual basis.
Reasons for Appointment
Mr. OGAWA Eiji was elected at the 73rd General Meeting of Shareholders.
Mr. KANO Nozomu was elected at the 74th General Meeting of Shareholders.
Mr. NAGAMINE Toyoyuki and Mr. MATSUO Shingo were elected at the 75th General Meeting of Shareholders.
Name
Independent Audit
& Supervisory
Board Members
Special Knowledge, Experience, and Skills
Airlines Business, Safety
Finance, Accounting
Legal, ESG,
Global and
Risk Management
Long-Term Strategy
KANO Nozomu
NAGAMINE Toyoyuki
MIURA Akihiko
MATSUO Shingo
OGAWA Eiji
90
1. Items Related to General Meetings of Shareholders
8. Items Related to Disposal and Receipt of Important Assets
• Proposals to be submitted to
• Aircraft procurement, sales, and leases
General Meetings of Shareholders for approval
9. Investment-Related Matters
2. Items Related to Directors, Corporate Executive Officers, the
10. Items Related to Major Debts
Board of Directors, etc.
• Financing plans
• Selection of director candidates and corporate
• Subordinated syndicated loan agreement
executive officers
• Bond issuances
• Results of the evaluation of the effectiveness of the
11. Items Related to Corporate Governance
Board of Directors
• Policies for officer remuneration
3. Items Related to Financial Results
• Internal audit plans and results reports
• Overview, action plans of the Group ESG Management
Promotion Committee
• Financial results and earnings forecasts
• Valuation of cross-shareholdings
• Reports from group companies
• Evaluations in the capital markets
4. Items Related to Shares and Capital
12. Other Items
• ANA cybersecurity measures
• Customer satisfaction survey results
• Issuance of new shares via public offering and
• ANA’s Way Survey (employee awareness survey) results
third-party allotment
• Capital stock, etc.
• Personnel Advisory Committee report
• Remuneration Advisory Committee report
5. Items Related to Organizational Restructuring
• Reorganization of ANA X Inc. and ANA Akindo Co., Ltd.
6. Items Related to Personnel and Organizations
7. Items Related to the Company and Important Subsidiaries
• ANA Group situation under the COVID-19 pandemic
• ANA Group Business Structure Reform
• Operating risks
• ANA Group medium- to long-term commitments toward
ESG management
• ANA brand business plan
Changes in Board Meeting Length
Since we began encouraging more substantial discussions
Discussion by Agenda Topic (Fiscal 2020)
We encourage active discussions of corporate strategy at
in board meetings, the annual total time devoted to board
board meetings, selecting major related topics about which to
meetings has increased over the last several years.
exchange opinions from medium- to long-term perspectives.
28.9 hours
27.7
26.4
21.4
22.8
2016
2017
2018
2019
2020
(FY)
Matters related to general
meetings of shareholders,
board of directors, etc.
5.5%
Matters related to
fleet plan,
investments,
asset sales, etc.
13.3%
17.4%
Matters related to
financial results
Other
7.2%
Important matters,
including corpo-
rate strategy and
business plans
56.5%
91
Business Foundations Supporting Corporate Value
Effectiveness of the Board of Directors
The ANA Group continues initiatives to improve the functions of the board of directors. We conduct a questionnaire survey for all direc-
tors and Audit & Supervisory Board members, and we individually interview the chairman of the board, president & CEO, outside direc-
tors, and outside Audit & Supervisory Board members. We provide a detailed analysis of the survey and interview results and present a
report to the board of directors.
We strive to enhance further effectiveness of the board of directors by improving the PDCA cycle through operational changes
toward new solutions.
Fiscal 2019
Action / Plan
Define Issues
Fiscal 2020
Do
Improvement Initiatives
Check
Evaluate
Action / Plan
Identify Issues
Fiscal 2021
Do
Improvement Initiatives
Strengthen coordination with
internal committees by including a
summary of Group Management
Committee discussions on the
materials provided to the board
of directors.
Explanations of discussions and opposing
opinions at internal meetings are becoming
more substantial. Delving deeper into the back-
ground behind the discussions and the tone of
debate would foster a better understanding.
Provide more time to discuss the
medium- to long-term manage-
ment issues at board meetings,
and hold a special meeting for
reports and QA separately from
board meetings.
Discussions on the overall picture of Business Structure
Reform have progressed. In the future, providing more
opportunities to discuss the medium- to long-term
issues of each Group company, such as the LCC, the
third brand, ANA X Inc. and ANA Akindo Co., Ltd.,
would foster more effective meetings.
Efforts are being made to provide the details of discussions at
internal meetings (opinions for and against topics) in greater
depth than before. However, there is still insufficient information
sharing related to the background behind the discussions and
the tone of debate.
Materials provided to the board of directors will include a sum-
mary of internal meeting discussions to enhance the amount
and quality of information shared.
More substantial explanations and discussions on medium- and
long-term management issues and the status of each Group
company are necessary.
Increase the time in board meetings for discussions of medium- to
long-term management issues, including responses to business
risks and ESG. Depending on the topic, provide opportunities for
explanations and questions separately from board of director meet-
ings. Provide periodic explanations of ANA Group management
issues from representatives of major Group companies.
Establish a new format of meet-
ing where the financial statement
auditor and outside directors
hold discussions.
While meetings were held with the financial
statement auditor, such meetings appear to
have ended somewhat superficially. Some extra
effort should go into these meetings.
In addition to meetings with the financial statement auditor,
opportunities should be provided to outside directors to dis-
cuss issues in meetings separate from board of director
meetings.
In addition to the meeting with the financial statement auditor,
provide opportunities for outside directors to discuss issues in
meetings separate from board of director meetings.
Continue to conduct interviews
with outside directors about their
interests and wishes in this area,
and conduct town meetings and
visits to frontline offices.
Town meetings with the CE management office
were very informative. Meetings like should
continue in the future, as they allow the group to
understand problems faced by employees on
the front lines and incorporate feedback into
management plans.
Visits to front-line divisions and town meetings with employees
have been well-received. The group should strive to continue
these efforts into the future.
Conduct interviews in advance regarding the interests and
wishes of outside directors regarding on-site visits and town
meetings with frontline divisions. Implement effective measures
by changing the divisions visited every year.
S
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While the status of discussions at
internal meetings is reported more
frequently than in the past, there is
still room for improvement.
i
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Providing more time to discuss
medium- to long-term issues, includ-
ing overseas airlines and industry
trends in more depth, would foster
more effective meetings.
More opportunities for discussion
should be provided separate from
board of director meetings to
deepen an understanding of various
management issues.
A
c
t
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v
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t
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s
A
d
d
i
t
i
o
n
a
l
Town meetings* with Flight Operation
Center were very informative.
Continue town meetings with
employees in various businesses.
* Dialogue between officers and employees
Cross-Shareholdings
We believe that it is essential to maintain and strengthen
The board evaluates the significance of holdings and the
collaborative relationships with our business partners for
benefits and risks associated. If, as a result of a
further growth and development of group businesses. The
comprehensive review, we determine that the evaluation
ANA Group, consisting mainly of our Air Transportation
results will continue to be low for a certain period of time
Business, engages in cross-shareholding when we deem
and further will not contribute to sustainable growth over
such holdings to contribute to improved corporate value
the medium to long term, we will reduce our holdings in
over the medium to long term from the viewpoint of
said stock.
continuing smooth business, maintaining business
ANA HOLDINGS owns shares in 36 publicly traded
alliances, and growing profits through strengthening
companies as cross-shareholdings for other than pure
business relationships.
investment purposes. The total amount on the balance
Every year, the board of directors conducts a
sheet of these shares as of the end of fiscal 2020 is
comprehensive review of individual cross-shareholdings.
¥101,388 million.
Equity Alliances with
Overseas Airlines
The total amount of shares of overseas airlines
owned by ANA HOLDINGS on our balance sheet is
¥35,764 million, which accounts for 35.3% of our
cross-shareholdings. The purpose of these holdings
is as described on the right.
Other
0.6%
Overseas
airlines
35.3%
Details of
Cross-
Shareholdings
Ongoing
cross-shareholdings
deemed necessary
32.6%
Cross-shareholdings
likely to increase
revenues or provide
other synergies
31.5%
(1) PAL HOLDINGS, INC. (Parent Company of Philippine Airlines)
• Strengthen strategic partnership with PAL through a wide range of business alliances, including code-share and
mileage program alliances, the dispatch of directors, and outsourcing of airport operations.
• Pursue the transportation of people and cargo between Japan and the Philippines, where passenger traffic is
relatively high within Southeast Asia.
• Enhance the ANA Group presence in the Southeast Asian market.
(2) Vietnam Airlines
• Strengthen strategic partnership with Vietnam Airlines through a wide range of business alliances, including
code-share and mileage program alliances, the dispatch of directors, and outsourcing of airport operations.
• Pursue the transportation of people and cargo between Japan and Vietnam, which has particularly high growth
potential in Asia.
• Enhance the ANA Group presence in the Southeast Asian market.
(3) Asiana Airlines
• Strengthen strategic partnership with Star Alliance partner Asiana Airlines through a wide range of business
alliances, including code-share and mileage program alliances, the dispatch of directors, and outsourcing of
airport operations.
• Pursue the transportation of people and cargo between Japan and Korea, where passenger traffic is high.
• Enhance the ANA Group presence in the Northeast Asian market.
92
93
Business Foundations Supporting Corporate Value
Effectiveness of the Board of Directors
ANA Outside Director Town Meeting Initiatives
Past Initiatives and Fiscal 2020 Response
The ANA Group conducts the ANA’s Way Survey, a biannual awareness survey of employees to determine whether the ANA’s Way, the
group’s code of conduct, has been embraced and put into action by our employees. The results of the survey revealed the need to reinvigo-
rate communications between management and employees. At the same time, our outside directors have expressed a desire to exchange
opinions with employees from various departments to gain a deeper understanding of the group’s business and corporate culture.
In light of these circumstances, we established opportunities for town meetings in which outside executives engage in direct dialogue
with managers across various ANA Group departments. Fiscal 2018 town meetings were conducted with the Maintenance Center and
each Group maintenance company. In fiscal 2019, we conducted a town meeting with the Flight Operation Center.
Our latest town meeting was held between outside directors and the CE Management Office*1, which is responsible for enhancing the value
of the ANA brand and building medium- to long-term brand strategies. The town meeting reconfirmed Group strengths and weaknesses, and
helped communicate the future direction of the group toward returning to a growth trajectory in the post-COVID-19 era.
*1 To be reorganized as the CX Management Office in fiscal 2021.
1
New Service Models Required for the Post-COVID-19 Era
Q What does hospitality look like in the post-COVID-19 era?
Should present service models be changed?
How can human services and digital services coexist?
2
A Corporate and Organizational Culture Supporting Speedy Management Decisions
Q What types of corporate and organizational cultures facilitate speedy decision-making when pursuing
new service models?
Can you cite any examples of steady progress in changing culture during the COVID-19 pandemic?
The Importance of
Demonstrating Leadership
• A corporate culture cannot be created overnight. The only way is
for management to issue strong messages and ask the company
to follow. But it takes a considerable amount of time for a new
culture to take root.
• The president is not in a position to make detailed decisions, nor
does he have the time to do so. Practically speaking, the most
important thing is the discussions in each department and the
suggestions generated from those discussions. These sugges-
tions have a significant impact on the final decisions.
• When deciding a new service model, systems relying on multiple
layers of executives to decide by consensus might look good, but
matters are never decided easily in reality. Projects do not move
forward unless a specific leader steps up in each department.
• For example, in a new initiative to sell in-flight meals via the
internet, it was at the insistence of the president that we dispelled
the stereotype that in-flight meals can only be sold in-flight. This
was a case demonstrating the importance of leadership.
• In this project, a collaborative relationship was established
between the organization that plans in-flight services and the
organization that executed the project. The COVID-19 pandemic
presents a difficult situation, but we should think of it also as an
opportunity.
New Service Models
The Need for Digitalization
• As customer preferences change in the post-COVID-19 era, we
• Digital technology is important for identifying customer attributes
3
Human Resources Development
must innovate our service procedures to meet new needs.
Providing safe spaces through the little things is important. For
example, handing out sanitizing cloths in the cabin, installing
restroom doors that can be opened without the use of hands, etc.
• Before COVID-19, in-flight entertainment focused mainly on
offering a wide variety of programs. Today, we are in the era of
Wi-Fi. Rather than spending money to increase the number of
channels, offering more robust Wi-Fi services may better meet
customer needs in the 5G generation.
• We must also take weight into consideration when introducing
new in-flight products. Limiting overall weight is an important
factor in reducing CO2 emissions.
in detail and tailoring services for these attributes. However, some
customers may be uncomfortable having their individual prefer-
ences researched in detail.
• While Japanese airlines have prioritized human services, European
and U.S. airlines prioritized investment in digital technologies
rather than improving service quality. Facing the COVID-19 pan-
demic, it appears that European and U.S. airlines are better
positioned to adapt to new customer needs using digital
technologies.
A Customer-Oriented Approach
• Approaching our work from the perspective of the customer is
extremely important. For example, we offer a variety of ANA
smartphone apps, but not all of them are being utilized fully.
We understand that every department is doing their best, but it is
important to take an objective look from the point of view of the
customer. Are multiple options really necessary?
• When we resume full-scale investment activities in the post-
COVID-19 era, we hope the CE Strategy Department*2 will take
the lead in making where and what projects to invest in, reflect-
ing third-party input and making customer-oriented decisions.
*2 To be reorganized as the CX Strategy Department in fiscal 2021.
Q How do you develop autonomous human resources who have broad perspectives and
who can create service models compatible with the new normal?
How do you pursue human resources
development effectively?
• The only way to pass on a corporate culture over several genera-
tions is to emphasize culture on a team and department level. In
pursuing digitalization, one must be aware that technology may
not be able to convey massages shared more naturally through
person-to-person communications.
• If there are certain human tasks that can be replaced by digitaliza-
tion, then those tasks should be replaced by machinery. The
important question is what do we as humans do afterward?
• It is essential for Japanese airlines to continue to focus on hospi-
tality. And it is important to position digitalization as a way to
achieve this focus. There is no other way to develop human
resources than to pass on knowledge from person to person.
• Even if telework becomes adopted widely and permanently, not
everything can be digitized. The decisive factor in maintaining
human society is face-to-face interaction. Looking at other in the
eye and sitting together knee-to-knee.
Establishment of the CX Management Office
Through Fiscal 2020
We established the CX Management Office in fiscal 2021 based on dialogue
with outside directors. The CX Management Office is the result of integrating
the CE Management Office and the Marketing Office, aiming to create new
service models as quickly as possible for the post-COVID-19 era.
The CX Management Office will oversee all marketing activities to improve
customer experience (CX) value from the perspective of the customer to
establish competitive advantages for the ANA brand. The office will take a
cross-organizational approach and incorporate customer feedback into
service design.
CE Management
Office
Develop medium- to long-term brand strategies
to enhance the value of the ANA brand.
Marketing Office
Engage in effective approaches to customers.
Identify and analyze customer needs.
Beginning Fiscal 2021
CX Management
Office
Enhance customer experience (CX) value
94
94
Town Meeting Held in December 2020
95
Business Foundations Supporting Corporate Value
Director and Audit & Supervisory Board Member Remuneration
1. Basic Policies for Director Remuneration
The basic policies for director remuneration are as follows.
annual performance targets have been accomplished. The ratio
of variable remuneration ranges from 0.0 to 1.0 times according
• Director remuneration consists of basic remuneration, which
to the degree of achievement for annual performance targets.
is a fixed amount set at a level commensurate with the role
a. Bonuses
and responsibility of each position, and performance-linked
We use net income, safety, customer satisfaction, and
remuneration, which clarifies responsibility business perfor-
employee satisfaction as indicators that reflect the perfor-
mance and serves as an incentive for the sustainable growth
mance and basic quality for a single fiscal year. Bonuses are
of the Company.
determined based on the scores of each indicator.
• We will establish a remuneration system that achieves our
b. Stock-Based Compensation
social responsibilities as a company, while allowing the
Company to share profits with shareholders by raising
medium- to long-term corporate value.
2. Procedures for Determining Remuneration
The board of directors decides director remuneration, taking
We use return on equity (ROE), operating income margin,
CO2 emissions volume, an external ESG evaluation indicator,
and a productivity indicator as indicators of improved cor-
porate value over the medium to long term and of sustain-
able growth. Stock-based compensation are determined
based on the scores of each indicator.
into account reports by the Remuneration Advisory Committee.
(2) Outside directors
The total amount of director remuneration shall be within the
Remuneration for outside directors consists of fixed compen-
scope of the amount approved at the Ordinary General Meeting
sation (monthly compensation) without a performance-linked
of Shareholders.
portion. This compensation encourages outside directors to
exercise their supervisory functions from an independent
3. Remuneration Advisory Committee
See page 85
standpoint.
4. Remuneration System
(1) Internal directors
(3) Audit & Supervisory Board members
Remuneration for both inside and outside Audit & Supervisory
Board members consists of fixed compensation (monthly com-
In addition to a fixed basic remuneration, remuneration for
pensation) without a performance-linked portion. This compen-
directors includes an annual variable performance-linked bonus
sation encourages those members to exercise their supervisory
and long-term incentive stock option plan as a means of pro-
functions from an independent standpoint.
viding healthy incentives for pursuing sustainable growth for
Remuneration levels for members of the Audit & Supervisory
the Company.
Board are determined in line with remuneration at other com-
The ratio of fixed basic remuneration and bonus / stock
panies and in consultation with outside experts.
options for total remuneration is 1:0.67 fixed to variable if
Conceptual Diagram for the Officer Remuneration System
Ratio
Fixed
1
Variable
0.67*1
Remuneration
(1) Basic remuneration
(2) Bonus
(short-term performance-linked)
(3) Stock-based compensation
(long-term incentive)
Measure for fiscal year results
according to various criteria
Evaluate contributions to corporate
value over the medium to long term
P
a
y
m
e
n
t
c
r
i
t
e
r
i
a
Internal directors
Payment according to
title, etc.
Net Income
Safety
Customer Satisfaction
Employee Satisfaction
Outside directors Uniform payment for all members
Audit & Supervisory
Board members
Payment according to status as
full-time or part-time
—
—
Return on Equity (ROE)
Operating Income Margin
CO2 Emissions
ESG Indicators
Productivity
—
—
Payment method
Monthly (cash)
Annually (cash)
Annually*3
Remuneration limits
Annual total for (1) and
(2) is limited to a
maximum ¥960 million
Per resolution at the 66th Ordinary
General Meeting of Shareholders, held
June 20, 2011
(3) Annual maximum of
¥100 million*2
Per resolution at the 70th Ordinary
General Meeting of Shareholders, held
June 29, 2015
Annual maximum of
¥180 million
Per resolution at the 74th Ordinary
General Meeting of Shareholders, held
June 21, 2019
*1 Range from 0.0 to 1.0 times according to the degree of achievement for annual performance targets.
*2 At the 70th Ordinary General Meeting of Shareholders held June 29, 2015, our shareholders passed a resolution to contribute funds to a trust up to a total of ¥100 million per
fiscal year (up to ¥500 million for every five fiscal years) to be used as stock-based compensation.
*3 Upon retirement, stock-based compensation granted during a term of office will be delivered in the form of shares (or partly in cash equivalent to the amount when converted to
market value) through the stock delivery trust.
96
Calculation Method
Performance-linked remuneration for internal directors is calculated based on the following approach.
Bonuses
The payment coefficient is determined by combining the following four indicators. The figures in the graph show the
percentage of each indicator related to the total bonus when a target is achieved (minimum 0%, maximum 150%).
Payment Concept: Bonus
Net Income
Customer Satisfaction
Employee Satisfaction
Minimum
(0%)
Target
Achieved
(100%)
Maximum
(150%)
82
8
10
125
12.5
12.5
Net income target:
Customer satisfaction target: Net Promoter Score (NPS) in the NPS survey indicated in the annual business plan
Employee satisfaction target: Points scored in ANA’s Way Survey (internal group survey)
Safety target:
Net income attributable to owners of the parent company indicated in the annual business plan
Indicator for a reduction in payment as a result of a security or safety event that has a significant impact on society (to be
confirmed by the Remuneration Advisory Committee)
Stock-Based
Compensation
The payment coefficient is determined by combining the following five indicators. The figures in the graph show the percentage
of each indicator related to the total stock-based compensation when a target is achieved (minimum 0%, maximum 150%).
Payment Concept: Stock-Based Compensation
ROE
Operating Income Margin
CO2 Emissions
ESG
Productivity
Minimum
(0%)
Target
Achieved
(100%)
Maximum
(150%)
12.5
12.5
15
10
50
37.5
37.5
15
10
50
ROE target:
Operating income margin target: Operating income margin at the end of fiscal 2022 indicated in the medium-term business plan
CO2 emissions target:
ESG target:
ROE as of the end of fiscal 2022 in the medium-term business plan
CO2 emissions per revenue ton-kilometer as of the end of fiscal 2022 indicated in the medium-term business plan
Number of ESG indicators achieved as of the end of fiscal 2022, based on the following four external evaluation indicators
(1) Selection as a component by DJSI World/Asia Ind
(2) Selection as a component by FTSE 4Good
(3) CDP A– rating
(4) Selected as a component by MSCI
These four external evaluations reflect the latest global trends and demands from stakeholders. These evaluations also allow us to measure
Productivity target:
the Group’s level of ESG management in comparison with other companies.
Productivity improvement index at the end of fiscal 2022
Fiscal 2020 Director and Audit & Supervisory Board Member Remuneration
Segment
Directors
(Outside directors)
Audit & Supervisory Board members
(Outside Audit & Supervisory Board members)
Total
Notes:
Number of
persons eligible
Total amount of
remuneration, etc.
(¥ millions)
Total amount by type (remuneration, etc.) (¥ millions)
Basic remuneration
Bonuses
Stock-based
compensation
11
(4)
6
(3)
17
317
(41)
117
(58)
434
233
(41)
117
(58)
350
—
(—)
—
—
—
84
(—)
—
(—)
84
1. The table above includes one outside director and one outside Audit & Supervisory Board member who resigned as of the end of the 75th Ordinary General Meeting of
Shareholders, held June 29, 2020.
2. The amounts listed above are rounded down to the nearest million yen.
Basic remuneration for directors and members of the Audit & Supervisory Board in fiscal 2020 has been reduced according to position
and in response to deteriorating business performance. Performance-linked bonuses have not been paid. In addition, the amount of stock-
based compensation for fiscal 2020 is an estimate, as the evaluation period is the three-year period from fiscal 2020 to fiscal 2022.
97
Business Foundations Supporting Corporate Value
Consolidated 11-Year Summary
ANA HOLDINGS INC. and its consolidated subsidiaries (Note 1)
(FY) (Note 2)
2020
2019
2018
2017
For the Year
Operating revenues (Note 4)
Operating expenses
Operating (loss) income
(Loss) income before income taxes
Net (loss) income attributable to owners of the parent
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Free cash flow
Substantial free cash flow (Note 5)
Depreciation and amortization
EBITDA (Note 6)
Capital expenditures
At Year-End
Total assets
Interest-bearing debt
Shareholders’ equity (Note 7)
Per Share Data (Yen, U.S. dollars) (Note 8)
(Loss) earnings per share
Book value per share
Cash dividends
Average number of shares during the year (Thousand shares)
Management Indexes
Operating income margin (%)
Net income margin (%)
ROA (%) (Note 9)
ROE (%) (Note 10)
Shareholders’ equity ratio (%)
Debt/equity ratio (Times) (Note 11)
Asset turnover (Times) (Note 12)
Payout ratio (%)
Number of employees
Operating Data
International Passenger Operations
Passenger revenues
Available seat-km (Millions)
Revenue passenger-km (Millions)
Number of passengers (Thousands)
Load factor (%)
Unit revenues (¥)
Yield (¥)
Domestic Passenger Operations
Passenger revenues
Available seat-km (Millions)
Revenue passenger-km (Millions)
Number of passengers (Thousands)
Load factor (%)
Unit revenues (¥)
Yield (¥)
LCC Passenger Operations (Note 13)
Revenues
Available seat-km (Millions)
Revenue passenger-km (Millions)
Number of passengers (Thousands)
Load factor (%)
Unit revenues (¥)
Yield (¥)
International Cargo Operations
Cargo revenues
Cargo volume (Tons)
Domestic Cargo Operations
Cargo revenues
Cargo volume (Tons)
728,683
1,193,457
(464,774)
(545,372)
(404,624)
(270,441)
(595,759)
1,098,172
(866,200)
(373,464)
176,352
(288,422)
156,710
3,207,883
1,655,452
1,007,233
(1,082.04)
2,141.49
—
373,945
(63.8)
(55.5)
(16.0)
(39.1)
31.4
1.6
0.3
—
46,580
44,726
14,465
2,840
427
19.6
3.1
15.7
203,119
26,896
11,567
12,660
43.0
7.6
17.6
22,071
4,932
2,403
2,080
48.7
4.5
9.2
160,503
655,019
20,881
218,032
1,974,216
1,913,410
60,806
51,501
27,655
130,169
(230,218)
23,869
(100,049)
(79,149)
175,739
236,545
351,361
2,560,153
842,862
1,061,028
82.66
3,171.80
—
334,559
3.1
1.4
2.4
2.6
41.4
0.8
0.8
—
45,849
613,908
68,885
50,219
9,416
72.9
8.9
12.2
679,962
58,552
39,502
42,916
67.5
11.6
17.2
81,953
11,076
9,202
7,288
83.1
7.4
8.9
102,697
866,821
25,533
373,176
2,058,312
1,893,293
165,019
154,023
110,777
296,148
(308,671)
(46,480)
(12,523)
(18,028)
159,541
324,560
375,864
2,687,122
788,649
1,099,413
331.04
3,285.46
75.00
334,632
8.0
5.4
6.4
10.6
40.9
0.7
0.8
22.7
43,466
651,587
65,976
50,776
10,093
77.0
9.9
12.8
696,617
58,475
40,704
44,325
69.6
11.9
17.1
93,611
12,052
10,394
8,153
86.2
7.8
9.0
125,015
913,915
27,454
393,773
1,971,799
1,807,283
164,516
196,641
143,887
316,014
(324,494)
(29,989)
(8,480)
61,410
150,408
314,924
304,707
2,562,462
798,393
988,661
417.82
2,954.47
60.00
344,372
8.3
7.3
6.8
15.1
38.6
0.8
0.8
14.4
41,930
597,446
64,376
49,132
9,740
76.3
9.3
12.2
689,760
58,426
40,271
44,150
68.9
11.8
17.1
87,555
11,832
10,212
7,797
86.3
7.4
8.6
118,002
994,593
30,710
436,790
Yen (Millions)
2016
1,765,259
1,619,720
145,539
139,462
98,827
237,084
(194,651)
3,349
42,433
39,655
140,354
285,893
254,425
2,314,410
729,877
919,157
28.23
262.44
6.00
3,500,205
8.2
5.6
6.5
11.6
39.7
0.8
0.8
21.3
39,243
516,789
60,148
45,602
9,119
75.8
8.6
11.3
678,326
59,080
38,990
42,967
66.0
11.5
17.4
—
—
—
—
—
—
—
93,301
954,027
30,860
451,266
2015
2014
2013
2012
2011
2010
1,791,187
1,654,724
136,463
131,064
78,169
263,878
(74,443)
(133,257)
189,435
88,035
138,830
275,293
281,416
2,228,808
703,886
789,896
22.36
225.87
5.00
3,496,561
7.6
4.4
6.1
9.8
35.4
0.9
0.8
22.4
36,273
515,696
54,710
40,635
8,167
74.3
9.4
12.7
685,638
59,421
38,470
42,664
64.7
11.5
17.8
—
—
—
—
—
—
—
113,309
810,628
31,740
466,979
1,713,457
1,621,916
91,541
77,983
39,239
206,879
(210,749)
(30,424)
(3,870)
(22,350)
131,329
222,870
274,702
2,302,437
819,831
798,280
11.24
228.45
4.00
3,492,380
5.3
2.3
4.2
5.1
34.7
1.0
0.8
35.6
34,919
468,321
49,487
35,639
7,208
72.0
9.5
13.1
683,369
60,213
38,582
43,203
64.1
11.3
17.7
—
—
—
—
—
—
—
124,772
841,765
32,584
475,462
1,601,013
1,535,027
65,986
36,391
18,886
200,124
(64,915)
(85,569)
135,209
38,929
136,180
202,166
183,739
2,173,607
834,768
746,070
5.41
213.82
3.00
3,493,860
4.1
1.2
3.2
2.5
34.3
1.1
0.7
55.5
33,719
395,340
41,451
30,613
6,336
73.9
9.5
12.9
675,153
61,046
37,861
42,668
62.0
11.1
17.8
—
—
—
—
—
—
—
104,736
710,610
32,116
477,081
1,483,581
1,379,754
103,827
70,876
43,140
173,196
(333,744)
84,549
(160,548)
54,256
123,916
227,743
162,752
2,137,242
897,134
766,737
13.51
218.41
4.00
3,192,482
7.0
2.9
5.1
6.6
35.9
1.2
0.7
29.6
32,634
348,319
37,947
28,545
6,276
75.2
9.2
12.2
665,968
58,508
36,333
41,089
62.1
11.4
18.3
—
—
—
—
—
—
—
86,589
621,487
32,231
463,473
1,411,504
1,314,482
97,022
63,431
28,178
214,406
(166,323)
16,171
48,083
52,043
119,268
216,290
196,881
2,002,570
963,657
549,014
11.22
218.24
4.00
2,511,841
6.9
2.0
5.1
5.3
27.4
1.8
0.7
35.7
32,884
320,066
34,406
25,351
5,883
73.7
9.3
12.6
651,556
56,756
34,589
39,020
60.9
11.5
18.8
—
—
—
—
—
—
—
87,978
570,684
33,248
467,348
1,357,653
1,289,845
67,808
35,058
23,305
203,889
(139,619)
(10,596)
64,270
27,870
118,440
186,248
211,698
1,928,021
938,819
520,254
9.29
207.35
2.00
2,507,572
5.0
1.7
3.7
4.7
27.0
1.8
0.7
21.5
32,731
280,637
29,768
22,430
5,168
75.3
9.4
12.5
652,611
56,796
35,983
40,574
63.4
11.5
18.1
—
—
—
—
—
—
—
86,057
557,445
32,413
453,606
U.S. dollars
(Thousands)
(Note 3)
2020
6,581,907
10,780,028
(4,198,121)
(4,926,131)
(3,654,809)
(2,442,787)
(5,381,257)
9,919,356
(7,824,044)
(3,373,353)
1,592,918
(2,605,202)
1,415,499
28,975,548
14,953,048
9,097,940
(9.77)
19.34
—
403,992
1,834,694
199,358
1,449,760
188,609
Notes: 1. As of March 31, 2021, there were 56 consolidated subsidiaries and 14 equity-method subsidiaries and affiliates.
8. The group conducted a 1-for-10 reverse stock split effective October 1, 2017. Calculations have been made assuming a reverse stock split at the beginning of the fiscal year ended
2. From April 1 to March 31 of the next year
3. U.S. dollar amounts in this report are translated, for convenience only, at the rate of ¥110.71 = US$1, the approximate exchange rate as of March 31, 2021.
4. Effective from the fiscal year ended March 2015, revenue of jet fuel which is resold to airlines outside the group is offset by its purchasing cost and the net amount is recorded in
operating revenues.
5. Substantial free cash flow is excluding purchase and redemption of marketable securities (time deposits and negotiable deposits of more than three months).
6. EBITDA = Operating income + Depreciation and amortization
7. Total shareholders’ equity = Shareholders’ equity + Accumulated other comprehensive income
98
March 2018.
9. ROA = (Operating income + Interest and dividend income) / Simple average of total assets
10. ROE = Net income attributable to owners of the parent / Simple average of shareholders’ equity
11. Debt/equity ratio = Interest-bearing debt / Shareholders’ equity
12. Asset turnover = Operating revenues / Simple average of total assets
13. Revenues of LCC Operations include ancillary income.
* Yen amounts are rounded down to the nearest million yen and percentages are rounded to the nearest one decimal place. U.S. dollar amounts are truncated.
99
Financial / Data Section
Management’s Discussion and Analysis
Economic Conditions
General Economic Overview
The Japanese economy experienced challenging conditions during
fiscal 2020 (April 1, 2020 to March 31, 2021) due to COVID-19.
While corporate activities and capital investment continued to show
signs of recovery, personal consumption and other indicators indi-
cated weakness.
Looking to the future, the economy of Japan is expected to pick
up, supported by the progress of vaccinations, which began in
February 2021, the impact of government policies, and improving
economies overseas. However, concerns remain about the risks
COVID-19 infection trends may pose to the economies of Japan and
the world.
Fuel Price Trends
Dubai crude oil prices declined significantly between the fourth
quarter of the previous fiscal year and the beginning of the fiscal year
under review. This decline was mainly due to concerns about a
global economic downturn caused by COVID-19. However, prices
rose after OPEC Plus agreed to a coordinated production cut.
Toward the end of the fiscal year, we saw increased expectations for
economic normalization as vaccinations began in earnest. The
market for Dubai crude oil continued to rise, resulting in an average
price of $44.3 per barrel for the period under review and $62.4 per
barrel on March 31, 2021.
The market price of Singapore kerosene tracked the price of
crude oil. The average price for the fiscal year was $46.2 per barrel,
ending at $62.2 per barrel on March 31, 2021.
Foreign Exchange Market
The U.S. dollar-yen exchange rate for fiscal 2020 showed a contin-
ued strengthening of the yen through the third quarter in response to
the outflow of funds from the dollar to other currencies, driven by
monetary and fiscal policies in various countries. By the end of the
fiscal year, however, the yen began to weaken as the U.S. economic
recovery spurred higher long-term interest rates. The Japanese yen
averaged ¥106.0 per U.S. dollar for fiscal 2020, ending the year at
¥110.7 per U.S. dollar on March 31, 2021.
Air Transport Traffic Trends
International Air Transportation Association (IATA) member airlines
reported 470 million passengers on scheduled international flights in
2020 (74.8% decrease year on year). Passengers on scheduled
domestic flights numbered 1,330 million (49.8% decrease). At the
same time, scheduled global air cargo volume decreased 8.7%.
(Source: IATA World Air Transport Statistics, 2021)
In Japan, passengers on trunk routes* decreased 64.7% year on
year to 15.00 million compared with the previous fiscal year. The
number of passengers on local routes* decreased 68.4% overall to
18.77 million. In total, passengers on scheduled domestic flights
decreased 66.9% to 33.77 million. Cargo volume decreased 45.2%
to 0.42 million tons. The number of passengers carried by Japanese
airlines on international services decreased 96.2% to 0.81 million,
while the volume of international cargo handled by Japanese airlines
decreased 6.3% to 1.36 million tons (Source: Ministry of Land,
Infrastructure, Transport and Tourism Air Transportation Statistics).
* Trunk routes refer to routes connecting Sapporo (New Chitose), Tokyo (Haneda), Tokyo
(Narita), Osaka (Itami), Osaka (Kansai), Fukuoka, and Okinawa (Naha) airports with one
another. Local routes refer to all other routes.
115
110
105
100
RPK (Billions)
9,000
6,000
3,000
0
Monthly Prices for Dubai Crude Oil and Singapore Kerosene
(U.S. dollars per barrel)
100
80
60
40
20
19/4
5
6
7
8
9
10
11
12
20/1
2
3
4
5
6
7
8
9
10
11
12
21/1
2
3
(Year/
Month)
Dubai Crude Oil
Singapore Kerosene
Source: Bloomberg
Monthly Yen-Dollar Exchange Rate
(Yen/U.S. dollars)
Performance for Fiscal 2020
Overview of the ANA Group
As of March 2021, the ANA Group (“the group”), led by holding
company ANA HOLDINGS INC., consists of 125 subsidiaries (includ-
ing ALL NIPPON AIRWAYS CO., LTD.) and 42 affiliates. A total of 56
companies are treated as consolidated subsidiaries, with another 14
treated as equity-method subsidiaries and affiliates. Group employ-
ees numbered 46,580 individuals, an increase of 731 compared to
the previous fiscal year-end.
The airline industry is in a tremendously challenging situation
globally due to the drastic decrease in travel as a result of immigration
restrictions across numerous countries and voluntary restraint in
travel on the part of consumers.
In response to this situation, we raised a total of more than ¥1.2
trillion to secure cash on hand and strengthen our financial founda-
tion in response to the significant decline in operating revenues.
Between private financial institutions and the Development Bank of
Japan, we borrowed ¥935.0 billion, while we raised another ¥297.6
billion through public offerings and a capital increase via third-party
allotment. In terms of costs, we reduced variable costs by curbing
the scale of operations, while cutting fixed costs through all manner
of cost reduction measures. Ultimately, however, we recorded a
significant net loss due to the impact of declining operating revenues.
Consolidated Operating Revenues, Operating
Expenses, and Operating (Loss) Income
Fiscal 2020 consolidated operating revenues amounted to ¥728.6
billion, a ¥1,245.5 billion (63.1%) decrease year on year, as every
segment, particularly the Air Transportation Business, experienced
the negative impact of COVID-19.
In addition to reducing variable costs, we implemented cost
reduction measures to lower fixed costs, including personnel
expenses, saving ¥590.0 billion (including the effect of ¥43.4 billion in
Employment Adjustment Subsidies). Given the significant decrease in
sales, however, operating income decreased ¥525.5 billion year on
year, resulting in a net loss of ¥464.7 billion.
Review by Segment
The Group operates four reportable segments: Air Transportation,
Airline Related, Travel Services, and Trade and Retail.
19/4
5
6
7
8
9
10
11
12
20/1
2
3
4
5
6
7
8
9
10
11
12
21/1
2
3
(Year/
Month)
Segment Information
(¥ Millions)
Source: Bloomberg
Operating Revenues
Operating (Loss) Income
EBITDA
Global Air Transportation Passenger Volume by Region
Air Transportation
¥604,014 ¥1,737,737 ¥(1,133,723)
¥(447,894)
¥49,550
¥(497,444)
¥(278,942)
¥217,846
¥(496,788)
(Fiscal Year)
2020
2019
Change
2020
2019
Change
2020
2019
Change
2014
2015
2016
2017
2018
2019
2020
Total
(Left)
(Right)
Asia-Pacific
Latin America
North America
Europe
Middle East
Africa
Source: International Air Transport Association (IATA), 2021
3,000
2,000
1,145
2,986
1,000
716
672
228
165
59
Airline Related
222,139
299,433
(77,294)
3,691
18,144
(14,453)
8,764
23,467
(14,703)
Travel Services
45,050
143,996
(98,946)
(5,084)
1,393
(6,477)
(4,568)
1,946
(6,514)
Trade and Retail
79,958
144,750
(64,792)
(4,282)
2,909
(7,191)
(2,915)
4,214
(7,129)
Others
36,643
44,223
(7,580)
(34)
3,526
(3,560)
410
3,788
(3,378)
Adjustments
(259,121)
(395,923)
136,802
(11,171)
(14,716)
3,545
(11,171)
(14,716)
3,545
Total (Consolidated)
¥728,683 ¥1,974,216 ¥(1,245,533)
¥(464,774)
¥60,806
¥(525,580)
¥(288,422)
¥236,545
¥(524,967)
0
(CY)
Notes: 1. “Others” represents all operating segments that are not included in reportable segments, including facility management, business support, and other operations.
2. Adjustments of segment profit represent the elimination of intersegment transactions, Group management expenses of ANA HOLDINGS INC., and other certain items.
3. Segment operating income is reconciled with operating income in the consolidated financial statements.
4. EBITDA = Operating income + Depreciation and amortization
Air Transportation Business
Air Transportation Business operating revenues amounted to ¥604.0
billion, a year-on-year decrease of 65.2%, mainly due to the marked
decline in passenger demand caused by the global outbreak of
COVID-19. Passenger demand on domestic routes had recovered
gradually since the lifting of the declaration of a state of emergency in
May, but demand declined again in December due to spreading
infections. Passenger demand on international routes continued to
be sluggish, while cargo revenues reached a record high, as we
captured demand proactively in the wake of resumed economic
activities and congestion in marine transportation. The ANA Group
reduced the scale of operations in response to declining demand,
cutting fuel expenses, landing and navigation fees, and other
expenses. We also worked to reduce personnel expenses, including
officer remuneration and bonuses, employee bonuses, and other
costs. Despite our efforts, operating income decreased ¥497.4 billion
year on year, resulting in a net loss of ¥447.8 billion.
100
101
Financial / Data Section
Management’s Discussion and Analysis
Changes in Operating Income (Loss) (FY2020 vs FY2019)
(¥ Billions)
49.5
ANA
International
Passenger
–569.1
Decrease in Revenues
–1,133.7
Decrease in Operating Income
–497.4
Depreciation and amortization,
maintenance, personnel, contracts, aircraft
leasing fee excluding code share, others
–447.8
Lower variable costs due to reduction of capacity
(including the impact of fuel market fluctuations)
ANA
Domestic
Passenger
–476.8
Revenues from contracted
maintenance and handling,
Mileage and Card, etc.
ANA
Cargo & Mail
＋50.7
ANA
Other
Revenues
–78.5
Decrease in Expenses
–636.2
Sales commissions
and promotion
expenses, in-flight
services, ground
services
Fuel &
Fuel Tax
Operation-
Linked
–108.5
–217.7
Other
Expenses
–204.8
Landing and
navigation fees,
code-share costs,
travel expenses for crew
LCC
–59.8
Sales-Linked
–105.2
FY2019
Operating Income
FY2020
Operating Income
(Fiscal Year)
Operating revenues
Operating expenses
Operating (loss) income
2020
604.0
1,051.9
(447.8)
2019
1,737.7
1,688.1
49.5
Change
–1,133.7
–636.2
–497.4
YoY (%)
–65.2
–37.7
—
Results by business are as follows.
ANA International Passenger Business
Both passenger numbers and revenue underperformed the previous
fiscal year significantly due to major slowdowns in demand caused
by immigration restrictions in countries across the world.
Even as cancellations and reduced flights continued on a major
scale, we exercised selectivity in choosing routes to continue and
operated temporary flights based on our assessments of demand for
individuals on overseas assignments and citizens returning home. In
December, we became the first Japanese airline to introduce a
Narita–Shenzhen route. We also began service between Haneda–
San Francisco. These new routes reflected our expectations for a
certain level of cargo transport and other demand.
ANA International Passenger Business Results
In terms of sales and services, we endeavored to capture
demand related to one-way travel from Japan for those on overseas
assignments, study abroad, etc., offering discounted fares begin-
ning in August. In January 2021, we launched a new Safe
Homecoming Service website to help passengers arrange for hotels
and transportation under the activity restrictions imposed upon their
return to Japan.
As a result, available seat-kilometers (ASK) and revenue passenger-
kilometers (RPK) decreased 79.0% and 94.3%, respectively, while
load factor decreased 53.3 points to 19.6%. Passenger numbers
decreased 95.5% to 427 thousand, while unit price increased
60.5% to ¥104,648. Operating revenues decreased 92.7% to
¥44.7 billion.
2019
YoY (%)
(¥ Billions)
(Fiscal Year)
ASK (Millions)
RPK (Millions)
Number of passengers (Thousands)
Load factor (%)
Passenger revenues (¥ Billions)
Unit revenues (¥)
Yield (¥)
Unit price (¥)
* Difference
2020
14,465
2,840
427
19.6
44.7
3.1
15.7
68,885
50,219
9,416
72.9
613.9
8.9
12.2
104,648
65,196
–79.0
–94.3
–95.5
–53.3*
–92.7
–65.3
+28.8
+60.5
18/4
800
600
400
200
0
200
150
100
50
0
2016
2017
2018
2019
2020
(FY)
(Left)
Passenger Revenues
(Right)
ASK
RPK
Yield
* Figures for ASK, RPK, and Yield are indexed using the figures for fiscal 2016 as 100.
ANA Domestic Passenger Business
The impact of COVID-19 drove passenger numbers and revenues
down significantly compared with the previous fiscal year.
Following the lifting of the declaration of a state of emergency in May,
demand began to recover; however, demand declined again begin-
ning in December, linked with higher infection rate trends.
Route network ASK in the first quarter decreased 73.3% com-
pared to the same period of the previous fiscal year. However, we
increased the number of flights operated in line with the recovery in
demand, resulting in a 49.3% year-on-year decrease for the second
quarter and a 38.6% year-on-year decrease in the third quarter,
which reflected the positive impact of the GoTo Travel Campaign. In
the fourth quarter, however, we limited flight operations in line with
the downturn in demand, recording a 55.3% year-on-year decrease
in ASK as we continued to adjust flight operations flexibly based on
our close monitoring of demand trends.
In terms of sales and services, in July, we launched our Free and
Easy Changes Campaign, which allowed changes in dates and
destinations with no extra fees. We also launched our Airport Access
Navi route search service offered by the group under the Mobility as
a Service (MaaS) platform. This service provides information to
customers regarding ground transportation routes such as rail,
buses, taxis, etc., linked to flight operation information. In addition,
customers can make reservations and pay for tickets in a single step.
We will continue to introduce measures that ensure seamless travel
for passengers from start to finish.
As a result of our efforts, ASK and RPK decreased 54.1% and
70.7%, respectively, while load factor decreased 24.5 points to
43.0%. Passenger numbers decreased 70.5% to 12.66 million, while
unit price increased 1.3% to ¥16,043. Operating revenues decreased
70.1% to ¥203.1 billion.
ANA Domestic Passenger Business Results
(¥ Billions)
(Fiscal Year)
ASK (Millions)
RPK (Millions)
Number of passengers (Thousands)
Load factor (%)
Passenger revenues (¥ Billions)
Unit revenues (¥)
Yield (¥)
Unit price (¥)
* Difference
2019
YoY (%)
2020
26,896
11,567
12,660
43.0
203.1
7.6
17.6
58,552
39,502
42,916
67.5
679.9
11.6
17.2
16,043
15,844
–54.1
–70.7
–70.5
–24.5*
–70.1
–35.0
+2.0
+1.3
ANA Cargo and Mail Business
The International Cargo Business saw an increase in transportation
demand for masks and other emergency supplies in the first quarter
of the fiscal year, as cargo space remained low throughout the year
due to global cancellations and reductions in passenger flights
caused by COVID-19. In August, demand for automobile-related
components, semiconductors, and electronic devices began to
recover. Congestion in marine transportation in the fourth quarter
resulted in tight supply and demand.
In response to these circumstances, the ANA Group sought to
capture demand by introducing the Boeing 777F wide-body cargo
freighter into the Narita–Frankfurt route in October and the Narita–
Bangkok route in December. We also increased the number of extra
cargo flights significantly using cargo freighters, as well as
passenger aircraft.
As a result, international cargo volume for fiscal 2020 amounted
to 655 thousand tons (down 24.4% year on year), while operating
revenues amounted to ¥160.5 billion (up 56.3%). Available
750
600
450
300
150
0
125
100
75
50
25
0
2016
2017
2018
2019
2020
(FY)
(Left)
Passenger Revenues
(Right)
ASK
RPK
Yield
* Figures for ASK, RPK, and Yield are indexed using the figures for fiscal 2016 as 100.
ton-kilometers (ATK) decreased 37.6% year on year and revenue
ton-kilometers (RTK) decreased 23.0%.
The ANA Group began transporting the new COVID-19 vaccine
manufactured by Pfizer in February 2021. We transport the vaccine
under exacting temperature control, contributing to a society in which
citizens can live confidently under the wider advancement of
vaccinations.
The Domestic Cargo Business sought to increase revenues
through measures that included flexible extra cargo flight scheduling
on the Haneda–Sapporo route, as firm e-commerce demand drove
strong performance for parcel transportation. On the other hand,
passenger flights were suspended or reduced on numerous routes
due to the spread of COVID-19, which resulted in a 58.5% year-on-
year decrease in ATK and a 37.9% decrease in RTK for fiscal 2020.
Cargo volume decreased 41.6% to 218 thousand tons, and operat-
ing revenues decreased by 18.2% to ¥20.8 billion.
102
103
Financial / Data Section
Management’s Discussion and Analysis
Operating revenues for international and domestic mail business
amounted to ¥2.9 billion and to ¥2.5 billion, year-on-year decreases
of 38.1% and 18.7%, respectively.
As a result, the ANA Cargo and Mail Business recorded fiscal
2020 operating revenues of ¥186.8 billion, a year-on-year increase
of 37.3%.
ANA Cargo and Mail Business Results
International Cargo Business Results
(Fiscal Year)
Cargo and mail services revenues (¥ Billions)
International ATK (Millions)
cargo
RTK (Millions)
Cargo volume (Thousand tons)
2020
186.8
4,588
3,251
655
2019
YoY (%)
136.1
7,354
4,222
866
+37.3
–37.6
–23.0
–24.4
Cargo revenues (¥ Billions)
160.5
102.6
+56.3
Unit price (¥/kg)
Mail revenues (¥ Billions)
Domestic ATK (Millions)
cargo
RTK (Millions)
Cargo volume (Thousand tons)
Cargo revenues (¥ Billions)
Unit price (¥/kg)
Mail revenues (¥ Billions)
245
2.9
708
240
218
20.8
96
2.5
118
+106.8
18/4
4.7
1,705
387
373
25.5
68
3.1
–38.1
–58.5
–37.9
–41.6
–18.2
+40.0
–18.7
LCC Business (Peach)
The impact of COVID-19 drove demand down significantly, resulting
in a sharp decline passenger numbers and revenues compared to
the previous fiscal year. Although passenger demand recovered
gradually after the lifting of the declaration of a state of emergency in
May, demand began to decline again in December due to an
increase in the number of infections.
Domestic ASK in our route network in the first quarter declined
58.0% year on year. However, in addition to network recovery in line
with increasing passenger demand, we launched Tokyo (Narita)–
Kushiro and Narita–Miyazaki routes in August, and Sapporo (New
Chitose)–Okinawa (Naha) and Sendai–Naha routes in October, as
well as Nagoya (Chubu)–New Chitose and Chubu–Sendai routes in
December. As a result, ASK increased by 12.4% in the second
quarter and again by 32.2% in the third quarter. In the fourth quarter,
we introduced new flights on Chubu–Naha and Chubu–Ishigaki
routes in January 2021, and on the Narita–Memambetsu and Narita–
Oita routes in February. However, total ASK decreased 21.1% year
on year due to cancellations and reductions of flights according to
declining passenger demand. We continued to suspend operations
on all international routes, but we resumed partial operations to Taipei
(Taoyuan) in October due to the easing of entry restrictions.
In terms of sales and services, in November, the airline imple-
mented a service allowing customers to book airline tickets and
apply for a COVID-19 test at the same time on some domestic
routes, leading to greater customer confidence.
(¥ Billions)
180
1,600
1,200
120
800
60
400
0
0
2016
2013
2017
2014
2018
2015
2019
2016
2020
2017
(Left)
International Cargo Revenues
(Right) ATK
RTK
Unit Price
* Figures for ATK, RTK, and Yield are indexed using the figures for fiscal 2016 as 100.
300
200
150
200
100
100
50
0
0
(FY)
As a result, ASK and RPK decreased 55.5% and 73.9%,
respectively, while load factor decreased 34.4 points to 48.7%.
Passenger numbers decreased 71.4% to 2.08 million, while unit
price decreased 5.7% to ¥10,606. Operating revenues decreased
73.1% to ¥22.0 billion.
LCC Business Performance (Peach Aviation Limited)
(Fiscal Year)
ASK (Millions)
RPK (Millions)
Number of passengers (Thousands)
Load factor (%)
Passenger revenues (¥ Billions)*3
Unit revenues (¥)
Yield (¥)
Unit price (¥)
2020
2019*1
YoY (%)
4,932
2,403
2,080
48.7
22.0
4.5
9.2
11,076
9,202
7,288
83.1
81.9
7.4
8.9
10,606
11,244
–55.5
–73.9
–71.4
–34.4*2
–73.1
–39.5
+3.1
–5.7
*1 Figures for fiscal 2019 are total of Peach and Vanilla Air results.
*2 Difference
*3 Operating revenues include incidental revenues.
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