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.
Domestic and international passenger flights decreased 44.3% and
72.5%, respectively. Freighter flights increased 2.9% (excluding
Peach Aviation flights). Landing and navigation fees amounted to
¥45.8 billion, down ¥74.3 billion (61.8%) year on year due to the
impact of COVID-19 on passenger flight cancellations and
reductions.
Aircraft leasing fees decreased ¥23.0 billion (17.6%) to ¥107.5 billion,
mainly due to the impact of cancellations and reductions in domestic
code-share flights that had been operated by other airlines.
Depreciation and amortization expense increased ¥0.6 billion (0.4%)
year on year to ¥168.9 billion. This result was mainly due the emerg-
ing effects of the early retirement of aircraft in conjunction with our
Business Structure Reform, even considering the introduction of new
aircraft such as the Boeing 787.
Aircraft maintenance expenses decreased ¥67.8 billion (38.3%) to
¥109.4 billion. This decrease was mainly due to our transition of
maintenance work in-house and a decrease in maintenance fre-
quency linked to flight hours.
Personnel expenses decreased ¥37.8 billion (18.8%) year on year to
¥163.7 billion, mainly due to controlled salaries and bonuses.
Sales commissions and promotion expenses decreased ¥57.9 billion
(55.0%) year on year to ¥47.2 billion. This decrease was mainly due
to a decrease in passenger demand caused by COVID-19.
Contract expenses decreased ¥73.7 billion (28.7%) year on year to
¥182.8 billion. Ground handling contracts and other contracted
operations were lower than prior year due to the impact of
COVID-19.
Other expenses decreased ¥97.3 billion (45.5%) year on year to
¥116.4 billion. This result was mainly due to decreased expenses
related to in-flight services.
Others
Other operating revenues in the Air Transportation Business
amounted to ¥147.2 billion, a 34.8% decrease year on year. Results
include incidental revenues from mileage memberships, in-flight
sales, contracted maintenance, etc.
Operating Expenses
Air Transportation Business operating expenses decreased ¥636.2
billion (37.7%) year on year to ¥1,051.9 billion. Specific expense
amounts and explanations of year-on-year changes are described
below.
Breakdown of Operating Revenues and Expenses
(¥ Millions)
(Fiscal Year)
2020
2019
Change
Segment operating revenues
¥ 604,014
¥1,737,737
¥(1,133,723)
International Passenger
44,726
613,908
(569,182)
Cargo
Mail
160,503
102,697
2,948
4,764
57,806
(1,816)
Domestic
Passenger
203,119
679,962
(476,843)
Cargo
Mail
LCC revenues
Other revenues
20,881
2,550
22,071
25,533
3,136
81,953
147,216
225,784
(4,652)
(586)
(59,882)
(78,568)
Segment operating expenses
1,051,908
1,688,187
(636,279)
Fuel and fuel tax
109,670
314,486
(204,816)
Landing and navigation fees
Aircraft leasing fees
Depreciation and
amortization
Aircraft maintenance
Personnel
Sales commissions and
promotion
Contracts
Others
Segment operating
(loss) income
45,847
107,592
120,173
130,614
(74,326)
(23,022)
168,952
168,296
656
109,467
163,776
177,330
201,651
(67,863)
(37,875)
47,289
105,192
(57,903)
182,869
116,446
256,618
213,827
(73,749)
(97,381)
¥ (447,894) ¥ 49,550
¥ (497,444)
Fuel and fuel tax expenses amounted to ¥109.6 billion, a ¥204.8
billion (65.1%) decrease year on year. This expense accounted for
10.4% of Air Transportation Business operating expenses, compared
with 18.6% in the previous fiscal year.
This ¥204.8 billion decrease was mainly due to decreases in ANA
unit price factors (including hedging effectiveness) of approximately
¥21.0 billion, and a decrease in consumption volume factors of
approximately ¥171.0 billion for ANA and approximately ¥13.0 billion
for the LCC.
During fiscal 2020, we engaged in the same measures related to
fuel tax reduction as we followed in the previous fiscal year.
104
105
Financial / Data Section
Management’s Discussion and Analysis
Airline Related Business
We endeavored to increase revenues through initiatives that included
selling ANA international route economy class in-flight meals online
beginning in December. However, airline flight cancellations and
reductions due to the spread of COVID-19 led to fewer contracts for
airport ground handling services, including passenger check-in and
baggage loading.
As a result, fiscal 2020 operating revenues amounted to ¥222.1
billion, a ¥77.2 billion (25.8%) decrease year on year. Operating
income amounted to ¥3.6 billion, which was a ¥14.4 billion (79.7%)
decrease.
Performance in the Airline Related Segment
Trade and Retail
While the e-commerce and other businesses of our digital marketing
division performed solidly throughout fiscal 2020, sales at ANA DUTY
FREE SHOP and ANA FESTA airport shops in our retail division
experienced a significant decline due to COVID-19. The Lifestyle
Industries division handles beverages, food products, amenities, and
other aircraft supplies provided on board. Sales here decreased
significantly due to large-scale cancellations and flight reductions.
As a result, Trade and Retail recorded operating revenues of
¥79.9 billion, down ¥64.7 billion (44.8%) year on year. Operating
income decreased ¥7.1 billion year on year, resulting in a net loss of
¥4.2 billion.
(¥ Millions)
Performance in the Trade and Retail Segment
(Fiscal Year)
2020
2019
Change
(¥ Millions)
Segment operating revenues
¥222,139
¥299,433
¥(77,294)
(Fiscal Year)
2020
2019
Change
Segment operating expenses
218,448
281,289
(62,841)
Segment operating income
¥ 3,691
¥ 18,144
¥(14,453)
Segment operating revenues
¥79,958
¥144,750
¥(64,792)
Segment operating expenses
84,240
141,841
(57,601)
Segment operating (loss) income
¥ (4,282)
¥ 2,909
¥ (7,191)
Travel Services
Despite our efforts to generate revenues from new sources, including
the ANA Travelers Online Tour and domestic sightseeing tours using
the Airbus A380 ANA FLYING HONU, the spread of COVID-19 had a
significantly negative impact on the overseas travel and domestic
travel within the Travel Services business. We canceled all overseas
tours organized by the group due to travel restrictions. Demand for
domestic travel recovered gradually in the third quarter, as the
volume of dynamic packaged product online sales outperformed the
previous fiscal year, partly due to the support of the GoTo Travel
Campaign started in July. However, travel demand declined again in
December due to an increase in the number of infected people.
As a result of the above, fiscal 2020 Travel Services operating
revenues amounted to ¥45.0 billion, a ¥98.9 billion (68.7%) decrease
year on year. Operating income decreased ¥6.4 billion year on year,
resulting in a net loss of ¥5.0 billion.
Performance in the Travel Services Segment
(¥ Millions)
(Fiscal Year)
2020
2019
Change
Segment operating revenues
¥45,050
¥143,996
¥(98,946)
Domestic package products
38,530
112,711
(74,181)
International package products
Other revenues
492
6,028
20,925
10,360
(20,433)
(4,332)
Segment operating expenses
50,134
142,603
(92,469)
Segment operating (loss) income
¥ (5,084)
¥ 1,393
¥ (6,477)
Others
Real estate business revenues remained firm throughout the fiscal
year and we established avatarin Inc. in April to create a new busi-
ness model. On the other hand, the impact of COVID-19 led to a
decrease in reception and management services due to closures of
airport lounges, as well as a decrease in revenues due to fewer
dispatches of instructors, etc., in our training business.
As a result, the Others business recorded operating revenues of
¥36.6 billion, down ¥7.5 billion (17.1%) year on year. Operating
income decreased ¥3.5 billion year on year, resulting in a net loss of
¥0.0 billion.
Performance in the Others Segment
(Fiscal Year)
2020
2019
Change
Segment operating revenues
¥36,643
¥44,223
¥(7,580)
Segment operating expenses
36,677
40,697
(4,020)
Segment operating (loss) income
¥ (34)
¥ 3,526
¥(3,560)
(¥ Millions)
Cash Flows
Basic Approach
The ANA Group’s fundamental approach to cash management is to
conduct continuous investments strategically to strengthen competi-
tiveness over the medium and long term, while maintaining financial
soundness.
We secure funds for working capital and capital expenditures
(mainly aircraft) through self-financing, bank loans, or through the
issuance of bonds. Our basic policy is to secure stable sources of
liquidity and funds necessary for business operations. As of March
31, 2021, we have secured commitment line agreements totaling
¥148.6 billion with several financial institutions.
The Group has access to the Japan Bank for International
Cooperation (JBIC) guarantee system for investments in aircraft,
which are our primary assets.
Overview of Fiscal 2020
Free cash flow resulted in an outflow of ¥866.2 billion (sum of cash
flows from operating activities and investing activities). Net cash
proceeds from financing activities totaled ¥1,098.1 billion. As a result,
cash and cash equivalents increased ¥234.3 billion from the begin-
ning of the fiscal year, amounting to ¥370.3 billion at the end of the
fiscal year.
Cash Flows from Operating Activities
After adjusting the ¥545.3 billion in loss before income taxes for
depreciation and amortization, notes and accounts payable, notes
and accounts receivable, and other non-cash items, net cash used in
operating activities amounted to ¥270.4 billion, compared with cash
inflows of ¥130.1 billion in the previous fiscal year.
Interest Coverage Ratio*
(Fiscal Year)
Interest coverage ratio
(Times)
2020
2019
—
20.4
* Interest coverage ratio = Cash flows from operating activities / Interest expenses
Non-Operating (Loss) Income/Expenses,
Special (Loss) Income/Expenses
Fiscal 2020 non-operating income and expenses and special
(loss) income amounted to a loss of ¥80.5 billion. This result was
mainly due to the recording of impairment losses related to the
accelerated retirement of aircraft as an expense under Business
Structure Reform.
Non-Operating (Loss) Income / Expenses
(¥ Millions)
(Fiscal Year)
2020
2019
Change
Interest and dividend income
¥ 2,109
¥ 3,031
¥
(922)
Interest expenses
Commission fee
Loss on valuation of derivatives
Foreign exchange gain
Gain on sales of assets
(16,689)
(6,291)
(10,398)
(7,742)
(8,044)
4,143
3,422
(20)
(603)
473
(7,722)
(7,441)
3,670
6,746
(3,324)
Loss on sales / disposal of assets
(8,434)
(7,435)
(999)
Impairment loss
(4,231)
(25,159)
20,928
Equity in earnings of unconsolidated
subsidiaries and affiliates
Equity in losses of unconsolidated
subsidiaries and affiliates
—
1,210
(1,210)
(3,630)
—
(3,630)
Gain on sales of investment securities
328
1,122
(794)
Valuation loss on investments in
securities
(8,384)
(853)
(7,531)
Compensation payments received
1,770
17,897
(16,127)
Loss on sales of shares of
subsidiaries and affiliates
Gain on sales of non-current assets
Gain on donation of non-current assets
Employment adjustment subsidy
Business restructuring expense
—
2,834
2,405
43,470
(86,350)
(7)
—
7
2,834
3,553
(1,148)
—
—
43,470
(86,350)
Other, net
Total
2,425
(2,969)
5,394
¥(80,598)
¥ (9,305)
¥(71,293)
Net (Loss) Income Attributable to Owners of the Parent
As a result, loss before income taxes amounted to ¥545.3 billion,
compared to income of ¥51.5 billion in the previous fiscal year. After
income taxes, municipal taxes, business taxes, and other adjust-
ments, net loss attributable to owners of the parent amounted to
¥404.6 billion, compared to net income of ¥27.6 billion in the previ-
ous fiscal year. Loss per share amounted to ¥1,082.04, compared to
earnings of ¥82.66.
Comprehensive loss amounted to ¥353.2 billion, a decrease of
¥338.4 billion compared to the previous fiscal year, mainly due to a
decrease in net income attributable to owners of the parent.
106
107
Financial / Data Section
Management’s Discussion and Analysis
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥595.7 billion, up ¥365.5
billion year on year. Net cash used in investing activities amounted to
¥103.0 billion when excluding cash movements that resulted in net
outlays of ¥492.7 billion related to the acquisition and sale of time
deposits and negotiable deposits of more than three months.
Free Cash Flow
As mentioned above, net cash used in operating activities totaled
¥270.4 billion. Since net cash used in investing activities was ¥595.7
billion, free cash flow for fiscal 2020 amounted to a net expenditure
of ¥866.2 billion, up ¥766.1 billion year on year. Substantial free cash
flow amounted to a negative ¥373.4 billion, up ¥294.3 billion year on
year, when excluding cash movements associated with the acquisi-
tion and sale of time deposits and negotiable deposits of more than
three months.
Cash Flows from Financing Activities
Net cash provided by financing activities totaled ¥1,098.1 billion, up
¥1,074.3 billion year on year. This result was mainly due to the
procurement of funds through borrowings, public offerings, and
third-party allotments.
Capital Expenditures and
Aircraft Procurement
Capital Expenditures
ANA Group capital expenditures are based on an approach of
selection and concentration. We invest to strengthen safety, increase
our competitiveness, and improve profitability. Capital expenditures
for fiscal 2020 amounted to ¥156.7 billion, a decrease of 55.4%,
reflecting restraint in the scope of investments in aircraft and other
items in light of the impact of COVID-19.
By segment, Air Transportation Business capital expenditures
decreased 56.0% year on year to ¥151.1 billion. Airline Related
expenditures decreased 74.8% to ¥1.5 billion, while Travel Services
expenditures decreased 48.1% to ¥0.1 billion. Trade and Retail
capital expenditures decreased 46.6% to ¥1.2 billion, and Others
increased 590.8% to ¥0.9 billion.
Capital Expenditures* / Depreciation and Amortization
375.8
351.3
304.7
254.4
140.3
150.4
159.5
175.7
156.7
176.3
(¥ Billions)
400
300
200
100
0
18/4
2016
2017
2018
2019
2020
(FY)
Capital Expenditures
Depreciation and Amortization
* Capital expenditures contains only fixed assets.
Fundamental Approach to Aircraft Procurement
Aircraft are major investments used over the long term (10-plus
years). Decisions regarding the selection of aircraft types suited to
routes and networks and the pursuit of the best fleet composition are
among the most important issues for airline management.
The ANA Group fleet strategy is based on three basic policies: (1)
Strengthening cost competitiveness by introducing fuel-efficient
aircraft, (2) Optimizing supply to demand by increasing the ratios of
narrow- and medium-body aircraft; and (3) Enhancing productivity by
integrating aircraft types.
Fundamentally, the group purchases and owns strategic aircraft
we intend to use over the medium to long term. We employ operat-
ing leases to procure aircraft for use over the short term or for
capacity adjustment. The group may also utilize sale-leaseback
transactions as a means to diversify corporate financing methods. In
these and other ways, the group selects the most economical aircraft
procurement method.
Aircraft Procured in Fiscal 2020
Based on our fleet strategy, total number of aircraft was 293 as of the
end of fiscal 2020, a decrease of 14 compared to the end of the
previous fiscal year.
During the fiscal year, the ANA Group added 10 new aircraft.
These additional aircraft consisted of one Boeing 787-9, six Airbus
A321-200neos, and three Airbus A320-200neos. At the same time,
we sold or returned from lease a total of 24 aircraft consisting of five
Boeing 777-300s, six Boeing 777-200s, three Boeing 767-300s, one
Boeing 767-300F, three Boeing 737-700s, three Boeing 737-500s,
and three Airbus A320-200s.
The table below shows changes in the number of aircraft.
Changes in the Number of Aircraft in Fiscal 2020
Aircraft
Number of Aircraft
Owned
Leased
( ) changes
Airbus A380
Boeing 777-300
Boeing 777-200
Boeing 777F (Freighter)
Boeing 787-10
Boeing 787-9
Boeing 787-8
Boeing 767-300
Boeing 767-300F (Freighter)
Airbus A321-200neo
Airbus A321-200
Airbus A320-200neo
Airbus A320-200
Boeing 737-800
Boeing 737-700
Boeing 737-500
De Havilland Canada DASH 8-400
Total
2
30
14
2
2
36
36
21
9
17
4
14
38
39
5
0
24
(–5)
(–6)
(+1)
(–3)
(–1)
(+6)
(+3)
(–3)
(–3)
(–3)
2
21
10
2
2
30
31
21
6
0
0
11
0
24
5
0
24
(–5)
(–6)
(+1)
(–2)
(–1)
(–3)
(–3)
0
9
4
0
0
6
5
0
3
(–1)
17
(+6)
(+3)
(–3)
4
3
38
15
0
0
0
293
(–14)
189
(–19)
104
(+5)
Notes: 1. Figures include aircraft that have been retired, are awaiting sale, or are awaiting lease return.
2. Figures for Airbus A320-200neos and Airbus A320-200s included 38 aircraft (all leased) operated by Peach Aviation Limited.
3. Separate from the figures above, as of March 31, 2021, 17 aircraft were leased outside the group (19 as of March 31, 2020).
Aircraft Procurement Plan for Fiscal 2021
We plan to add a total of 20 aircraft during fiscal 2021. Our plans call
for purchasing one Airbus A380, one Boeing 787-10, eight Boeing
787-9s, one Airbus A321-200neoLR, five Airbus A321-200neos, and
four Airbus A320-200neos.
Meanwhile, the group plans to retire 32 aircraft, consisting of ten
Boeing 777-300s, four Boeing 777-200s, three Boeing 767-300s,
five Boeing 737-700s, and ten Airbus A320-200s
108
109
Financial / Data Section
Management’s Discussion and Analysis
Financial Position
Assets
Total assets as of March 31, 2021, amounted to ¥3,207.8 billion, an
increase of ¥647.7 billion compared to March 31, 2020.
Total current assets amounted to ¥1,226.3 billion, up ¥655.1
billion from the end of the previous fiscal year. Cash and deposits
amounted to ¥464.7 billion, an increase of ¥355.2 billion compared
to the end of the previous fiscal year. Marketable securities increased
¥371.7 billion to ¥500.9 billion. As a result, liquidity on hand
amounted to ¥965.7 billion, up ¥727.0 billion year on year.
Total non-current assets at the end of the fiscal year stood at
¥1,979.5 billion, down ¥8.6 billion from one year earlier.
Liabilities
Total liabilities as of March 31, 2021, amounted to ¥2,195.5 billion,
up ¥704.2 billion from one year earlier.
Current liabilities totaled ¥503.4 billion at the end of the fiscal year,
a decrease of ¥27.1 billion. This result was primarily due to a
decrease in advance ticket sales.
Long-term liabilities amounted to ¥1,692.1 billion, an increase of
¥731.4 billion.
Interest-bearing debt, including finance lease obligations,
increased ¥812.5 billion to ¥1,655.4 billion, mainly due to the pro-
curement of funds via subordinated loans and other borrowings. The
debt/equity ratio amounted to 1.6 times, an increase of 0.8 point
compared with the end of the previous fiscal year.
Interest-Bearing Debt / Debt/Equity Ratio*
(¥ Billions)
2,000
1,500
1,000
500
0
18/4
1,655.4
1.6
729.8
0.8
798.3
0.8
788.6
0.7
842.8
0.8
2016
2017
2018
2019
2020
(Left)
Interest-Bearing Debt
(Right)
Debt/Equity Ratio
* Excluding off-balanced lease obligations
(Times)
2.0
1.5
1.0
0.5
0
(FYE)
Interest-Bearing Debt
(¥ Millions)
Bond Ratings
Fuel and Exchange Rate Hedging
(End of Fiscal Year)
Short-term debt:
Short-term loans
2020
2019
Change
¥ 173,036
¥108,307
¥ 64,729
100,070
429
99,641
Current portion of long-term
loans
Current portion of bonds
Finance lease obligations
69,443
84,057
(14,614)
—
3,523
20,000
3,821
(20,000)
(298)
Long-term debt*:
¥1,482,416
¥734,555
747,861
Bonds
Convertible bonds with stock
acquisition rights
165,000
165,000
140,000
140,000
—
—
Long-term loans
1,168,252
416,900
751,352
Finance lease obligations
9,164
12,655
(3,491)
Total interest-bearing debt
¥1,655,452
¥842,862
¥812,590
* Excluding current portion of long-term loans and current portion of bonds
Net Assets
Net assets as of March 31, 2021, amounted to ¥1,012.3 billion, a
decrease of ¥56.5 billion compared to the end of the previous
fiscal year.
As a result of accelerating Business Structure Reform and the
procurement of funds through public offerings and third-party
allotments to strengthen our financial foundations, common stock
and capital surplus increased ¥297.6 billion in total. Meanwhile, as a
result of a decrease in retained earnings due to recording a net loss,
shareholders’ equity as of the end of the fiscal year decreased
¥107.9 billion to ¥960.6 billion.
Total accumulated other comprehensive income amounted to
¥46.5 billion, an increase of ¥54.1 billion compared to the end of the
previous fiscal year. This increase was mainly due to increases in
unrealized gain on securities and deferred gain on derivatives under
hedge accounting.
As a result, total shareholders’ equity decreased ¥53.7 billion from
the previous fiscal year-end, standing at ¥1,007.2 billion.
Shareholders’ equity ratio decreased 10.0 points to 31.4%.
Book value per share (BPS) at the end of the fiscal year was
¥2,141.49, compared to ¥3,171.80 as of the end of the previous
fiscal year.
The Company has obtained credit ratings on its various long-term
bonds from Japan Credit Rating Agency, Ltd. (JCR) and Rating and
Investment Information, Inc. (R&I).
Bond ratings as of March 31, 2021, were as follows:
Bond Ratings
Issuer rating
Outlook
JCR
A
R&I
A–
Negative
Negative
Retirement Benefit Obligations
The ANA Group has established a defined contribution pension plan
and a defined benefit pension plan. The defined benefit plans consist
of defined benefit corporate pension plan and lump-sum retirement
benefit plans. In addition, the group has adopted a defined contribu-
tion pension plan. Certain employees are entitled to additional
benefits upon retirement.
Certain consolidated subsidiaries adopting defined-benefit
corporate pension plans and lump-sum retirement benefit plans use
a simplified method for calculating retirement benefit expenses and
liabilities.
Retirement Benefit Obligation and Related Expenses
(Fiscal Year / End of Fiscal Year)
Retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Liability for retirement benefits
Asset for retirement benefits
Net liability arising from defined benefit obligation
in the consolidated balance sheet
(¥ Millions)
2020
2019
¥(224,180)
¥(225,286)
64,064
62,717
(160,116)
(162,569)
(160,885)
(163,384)
769
815
(160,116)
(162,569)
Net periodic benefit costs
15,297
15,537
Main basis for actuarial calculations
Discount rates
0.1-1.2% 0.1-1.2%
Expected rates of return on plan assets
1.0-2.5% 1.0-2.5%
Contribution to defined contribution pension plans
¥ 4,467
¥ 4,381
The ANA Group pursues and conducts optimal hedge transactions
that reduce the impact of volatility in fuel prices and foreign
exchange rates to control the risk of fluctuations in earnings. The
objective of this hedging is to both stabilize profitability and equalize
expenses in response to fluctuations in fuel surcharges and foreign
currency revenues.
The group conducts fuel hedging for the ANA Brand three years
in advance of the applicable period after considering fuel surcharge
revenues.
The group hedges U.S. dollar payments for ANA HOLDINGS and
the ANA Brand related to fuel expenses three years in advance and
U.S. dollar payments associated with capital expenditures for aircraft
and other items five years in advance of the payment periods. Based
on a balance of foreign currency revenues, revenues linked to foreign
exchange market fluctuations, and foreign currency expenses with
respect to U.S. dollar payments, the group uses forward exchange
agreements to hedge any portion of foreign currency expenses in
excess of foreign currency revenues.
Allocation of Profits
Basic Policy on Allocation of Profits
We recognize that shareholder returns are an important management
priority for the group.
The group strives to bolster shareholder returns while maintaining
financial soundness. This goal will be accomplished as we secure the
funds needed in light of earnings fluctuations and to conduct growth
investments (aircraft, etc.) to support future business development.
We examine the shareholder returns in terms of dividend levels and
share buybacks on an ongoing basis, while considering the level for
free cash flow. Our basic policy is to pay a year-end dividend of
surplus once a year. Our General Meeting of Shareholders is the
decision-making body for the distribution of surpluses.
Dividends for Fiscal 2020 and Plans for Fiscal 2021
We deeply regret to announce that we will not be paying a dividend
for the current fiscal year due to the tremendous impact of COVID-19
lead to the deterioration of group business performance. For the time
being, our top priority will be to maintain and strengthen our financial
base. However, we intend to continue implementing Business
Structure Reform on a steady basis, striving to improve earnings and
resume dividend payments as quickly as possible.
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111
Financial / Data Section
Operating Risks
The following describes major risks related to business and accounting conditions, etc., recognized by management as having a potentially
material impact on the consolidated Group financial condition, earnings, and cash flows.
Further, the forward-looking statements that follow are based on Group judgments as of March 31, 2021.
Category
Risk Factors
Description
Response Measures
International Situation
• Decline in demand for international routes to North
America, Europe, China, and Asia due to political
instability, international conflicts, large-scale terrorist
attacks, deterioration in diplomatic relations, etc.
Economic Recession
• Decline in demand for air transportation due to
economic stagnation in Japan and overseas
• Scale back operations in a flexible manner in response to
sharp decline in demand
• Build a business portfolio that does not depend
excessively on a specific business
• Conduct ongoing cost structure reform to reduce costs
and add liquidity to fixed costs
• Ensure liquidity on hand
Government
Air Transportation
Policies
• Slots at congested airports in the Tokyo metropolitan
area (Haneda, Narita) allocated to the advantage of
other carriers
• Contraction or elimination of reduction measures related
to jet fuel taxes, landing fees, and air navigation service
charges
• Consult with the Ministry of Land, Infrastructure, Transport
and Tourism (MLIT) and make requests on an equal footing
with overseas airlines
External
Environment
Market Fluctuations
(Crude Oil Prices,
Exchange Rates)
• Quick, sharp rises in crude oil prices outpacing hedges,
other self-directed efforts to compensate, and ability to
pass on costs in airfares
• Systematic and continuous hedging transactions of crude
oil commodity derivatives
• Use foreign currency generated for foreign currency
• Sharp declines in the yen in foreign exchange markets
expenditures to the extent possible
driving aircraft and fuel procurement costs outpacing self-
directed efforts to compensate
• Use forward exchange agreements and currency options
for a portion of foreign currencies
Infectious Diseases
and Large-Scale
Disasters
• Outbreak of serious infectious disease resulting in sharply
lower air transportation demand due to voluntary re-
straints and restrictions on travel in infected areas
• Significant decrease in air transportation demand and
negative impact on Group flight operations in the event of
a large-scale disaster that restricts airport operations or
flight routes for an extended period of time, or which
damages Group facilities
• Scale back operations in a flexible manner in response to
sharp decline in demand
• Conduct ongoing cost structure reform to reduce costs
and add liquidity to fixed costs
• Ensure liquidity on hand
• Implement measures for facilities and equipment in advance
to prevent the loss of major functions related to Group flight
operations
• Coordinate with airport operating companies to strengthen
overall airport disaster-response measures based on the
fiscal 2019 Guidelines (A2-BCP) of MLIT
• Obsolescence of current business models due to intensi-
• Review business portfolio and cost structure in light of future
Corporate Strategy
(Business Structure)
fied competition or changes in consumer behavior
• Dependence on revenues and profits from specific
demand trends and changes in the social environment
• Engage in a differentiation strategy to secure competitive
businesses
advantage in each business segment
Aviation Safety
(Aircraft Accidents, etc.)
• Aircraft accidents causing loss of customer confidence
and public reputation having a significant impact on
Group management
• Build and implement organizational measures, including
safety risk management systems, safety audits by specialty
organizations, and the collection and internal dissemination
of the latest information related to safety
• Conduct ongoing training and education, including training
for Group employees engaged directly in flight operations,
hands-on training for all Group employees, etc.
• Leverage air transportation insurance to cover damage
reparations, and restoration / replacements of aircraft
Internal
Environment
IT (System Failures),
Cyberattacks, and
Information Leakage
• Significant impact of systems failures or cyberattacks on
operations maintenance and services due to high degree
of dependence on systems
• 24/7/365 monitoring of defense in depth (access restric-
tions, antivirus measures) and other defense measures
• Implementation of systems and operational measures to
• Leakage of personal information that leads to payment
of significant sanctions based on violations of the law,
as well as decline in customer base due to loss of trust
prevent information leakage
• Implementation of security literacy education for
employees
Profit Structure
• Major impact of significant demand decreases on profits
due to inflexible fixed and operating costs
• Optimize supply to demand by placing appropriate aircraft
into service depending on demand and reservation trends
• Particularly large impact on revenues if summer demand
• Conduct ongoing cost structure reform to reduce costs
declines significantly
and add liquidity to fixed costs
Finances
• Deterioration in the profitability of each segment or a deci-
sion to sell assets forcing the group to recognize impair-
ment losses or loss on sales related to assets or
investment securities
• Decline in estimated future taxable income due to deterio-
ration in business profits, leading to a reversal of deferred
tax assets and the recording of a loss
• Plan and execute ANA Group Corporate Strategy and
profit plans
• Monitor the progress of profit plans
The following describes matters in addition to the risks noted
above that could have a material impact on investor decisions.
(1) Important Factors
The ANA Group has experienced the significant negative impact of
COVID-19, resulting in declining operating revenues.
Given these unprecedented circumstances, we have limited the
scale of Air Transportation Business operations and reduced fuel
expenses and other operations-related costs. In addition to lowering
fixed costs through reductions in officer remuneration, employee
wages, and bonus payments, we have moved maintenance work
formerly outsourced to companies outside the Group in-house. We
are also carefully examining and restraining capital investment in
aircraft and other equipment, while also reviewing the timing of
investments.
In addition to borrowing a total of ¥935 billion from private
financial institutions and the Development Bank of Japan, we raised
¥297.6 billion through public offerings and third-party allotment. In
addition, we have concluded a commitment line agreement as a
loan facility. In the future, we will raise more funds as necessary to
secure liquidity on hand for every Group company. Accordingly, it is
our judgment that there are no material uncertainties regarding the
going concern assumption for the ANA Group.
(2) Risks Related to International Situations
The group currently operates international routes, primarily to North
America, Europe, China, and other parts of Asia. Going forward,
incidents including political instability, international conflicts, large-
scale terrorist attacks, or deterioration in diplomatic relations with
countries where the group operates flights or maintains offices and
other bases could affect the group’s performance due to the
accompanying decrease in demand for travel on these international
routes.
(3) Risks Related to Statutory Regulations
As an airline operator, the group undertakes operations based on
the stipulations of statutory regulations relating to airline operations.
The group is required to conduct passenger and cargo operations
on international routes in accordance with the stipulations of inter-
national agreements, including treaties, bilateral agreements, and
the decisions of the International Air Transport Association (IATA)
and the International Civil Aviation Organization (ICAO). The group’s
fares, airspace, operating schedule, and safety management are
subject to a variety of constraints due to these regulations. Further,
the group’s operations could be constrained by the Japanese
Antitrust Law and similar laws and regulations in other countries
with regard to the pricing of fares and charges.
(4) Risks Related to Environmental Regulations
In recent years, numerous Japanese and overseas statutory
environmental protection regulations have been introduced or
strengthened with regard to such issues as noise, aircraft emissions
of CO2 and other greenhouse gases, use of environmentally pollut-
ing substances and their disposal, and energy use at major offices.
The ANA Group incurs significant costs to comply with these laws
and regulations. In addition to the emissions trading and reduction
schemes adopted in 2021 related to controlling greenhouse gases
generated by international aviation, if a globally shared environmen-
tal tax is determined and adopted, business activities could be
restricted or significant additional costs may be incurred.
(5) Risks Related to the Business Environment of the
Airline Industry
Group business performance could be affected if the current
competitive and business environment were to change significantly
in the future, including changes in aviation policies in various coun-
tries, changes in transportation policies in Japan, mergers of leading
competitors, or mutual capital alliances.
1. Risks Related to Airport Slots
Despite ongoing declines in demand due to the impact of COVID-
19, differences in the number of slots allocated at congested Tokyo
metropolitan area airports (Haneda, Narita) or the timing of
allocations from ANA Group projections upon the recovery of
demand could affect the achievement of the targets of the Group
Corporate Strategy.
2. Risks Related to Public-Sector Fees
Public-sector fees include jet fuel taxes, landing fees, and air
navigation service charges. Presently, these public-sector fees in
Japan and elsewhere are subject to temporary measures to reduce
jet fuel taxes, landing fees, and air navigation service charges,
however, these measures could be scaled back or terminated in the
future, which could affect the group’s performance.
(6) Risks of Economic Recession
The Air Transportation Business is susceptible to the effects of
economic trends, and if the domestic or global economy becomes
sluggish, this may cause a decrease in demand for air transporta-
tion or decline in unit price due to deterioration in personal con-
sumption and corporate earnings.
112
113
Financial / Data Section
(9) Risks Related to Competition
Group business costs could rise in the future due to fuel expenses,
financing costs, compliance with environmental regulations, or other
factors. In this case, the group may need to engage in cost reduc-
tion measures related to indirect fixed costs and other costs to
secure Group profits, passing such costs on to passengers in the
form of fares and charges. However, because the group is in
competition with other airlines and LCCs in Japan and overseas, as
well as with alternative modes of transportation in Japan, such as
the shinkansen, on domestic routes, our ability to pass on costs
may be restricted, which could affect the group’s performance.
(10) Risks Related to the Outbreak and Spread of
Infectious Diseases
At present, the group is experiencing the severe impact of the global
COVID-19 pandemic. Outbreaks and the spread of new infections in
the future could result in significant decreases in demand due to
various government regulations and voluntary restraints on travel,
which could affect the group’s performance.
Furthermore, a large-scale outbreak of the disease among our
employees and contractors could affect business continuity.
(11) Risks Related to Disasters
An earthquake, tsunami, flood, typhoon, snowfall, volcanic eruption,
or other event that restricts airport operations or flight routes for an
extended period of time, or which results in the loss of major
functions related to the operation of Group flights, could affect the
group’s performance due to a significant decrease in air transporta-
tion demand and impact on Group flight operations.
In particular, because the group’s data center is located in the
Tokyo metropolitan area, and because all operational control for
domestic and international flights is managed from Haneda Airport,
a major earthquake or typhoon in the Tokyo metropolitan area
could cause Group operations to be suspended for an extended
period of time, which could have a significant impact on the group’s
performance.
3. Risks Related to Investments
The group may enter new businesses and invest in or acquire other
companies in Japan or overseas to further expand business growth.
These investments and other initiatives may not produce the
intended effects. Moreover, if the interests of equity investors do not
align, the business may not operate in the manner the group
considers appropriate. If operations deteriorate in said business, the
group may be exposed to an economic burden. In addition, equity
investors other than the group may withdraw from said business.
(13) Risks Related to Ineffective Strategic Alliances
The group belongs to the Star Alliance. Based on Antitrust Immunity
(ATI) approval, joint venture operations are introduced in collabora-
tion with United Airlines in the network between Asia and the United
States, and with Lufthansa and Lufthansa group companies, Swiss
International Air Lines, Austrian Airlines, and Lufthansa Cargo AG. in
the network between Japan and Europe. The group has also
entered into individual agreements, mainly in Asia, that go beyond
the frameworks of these alliances. However, the benefits of Star
Alliance membership may diminish if the alliance is broken up by
antitrust laws in various countries; an alliance partner withdraws
from Star Alliance; bilateral alliances between individual member
companies end; an alliance partner performs poorly, restructures, or
becomes less creditworthy; or restrictions on alliance activities are
tightened due to external factors. Such eventualities could affect the
group’s performance.
(12) Risks Related to the Group’s Corporate Strategy
1. Risks Related to the Group’s Fleet Strategy
In the Air Transportation Business, the group is pursuing a fleet
strategy centered on introducing highly economical aircraft and
better optimizing supply to demand. This strategy involves ordering
aircraft from The Boeing Company, Airbus S.A.S., De Havilland
Aircraft of Canada Ltd., and Mitsubishi Aircraft Corporation. Delays
in delivery from any of those four companies for financial or other
reasons could create obstacles to Group operations.
In addition, elements of the fleet strategy could prove ineffective
or their expected benefits could diminish significantly due to the
factors given below.
1) Dependence on The Boeing Company
In accordance with the above fleet strategy, the group has
ordered a large number of aircraft from The Boeing Company
(Boeing). Therefore, should financial or other issues render
Boeing unable to fulfill its agreements with the group or compa-
nies such as those that maintain Boeing products, the group
would be unable to acquire or maintain aircraft in accordance
with its fleet strategy. Such eventualities could affect the group’s
operations.
2) Delay of Aircraft Development Plans by Mitsubishi
Aircraft Corporation
The group has decided to introduce the Mitsubishi Space Jet,
which is currently under development by Mitsubishi Aircraft
Corporation. However, Mitsubishi Aircraft Corporation
announced that development activities were suspended, which
could affect the group’s operations depending on the future
development policy related to the aircraft.
2. Risks to Business Structure
Our Air Transportation Business and Airline Related Business
account for most of our consolidated operating revenues. In addi-
tion, the Air Transportation Business is closely interconnected with
our Travel Services and Trade and Retail businesses. Accordingly,
the ANA Group business structure is heavily dependent on the Air
Transportation Business. It may not be possible for other operating
segments to compensate for an event that affects the overall Air
Transportation Business revenues, which could have a significant
impact on Group performance.
Operating Risks
(7) Risks Related to Crude Oil Price Fluctuations
Jet fuel is a crude oil derivative and its price tracks the price of
crude oil. Variances that exceed Group estimates for factors
that affect the price of crude oil, including political instability in the
oil-producing nations of the Middle East, the shale oil production
structure in the U.S., increased demand for crude oil due to rapid
economic growth in emerging countries, reductions in oil stockpiles
or reserves, speculative investment in crude oil, and natural disasters
can affect the group’s performance as follows.
1. Risk of Increase in Crude Oil Prices
Generally, an increase in the price of crude oil causes an increase
in the price of jet fuel, which imposes substantial additional costs on
the group. Accordingly, to mitigate the risk of fluctuations in the
price of jet fuel and to stabilize operating income, the group hedges
risks using crude oil and jet fuel commodity derivatives in planned,
continuous hedging transactions. In the event that crude oil prices
rise over a short period, there are limitations to the group’s ability to
offset increases in crude oil prices through ongoing cost reductions
as well as raising fares and charges. For these reasons, the group
may be unable to avoid the influence of a sharp increase in crude oil
prices completely, depending on factors such as hedging positions.
2. Risk of Sudden Decrease in Crude Oil Prices
As described above, the group conducts hedge transactions against
changes in the price of crude oil to mitigate risk. Therefore, a
sudden decrease in oil prices may not directly contribute to earnings
because, in addition to decreases in or expiration of fuel surcharges
established in response to jet fuel prices, hedge positions and other
market conditions may preclude the immediate reflection of a
sudden drop in fuel expenses in results.
(8) Risks Related to Foreign Exchange Rate
Fluctuations
The group’s expenditures in foreign currencies are greater than its
revenues in foreign currencies. Therefore, depreciation of the yen
affects the group’s profits. Accordingly, to the greatest extent
possible, foreign currency taken in as revenue is used to pay
expenses denominated in the same foreign currency to minimize the
impact on operating income from the risk of fluctuations in foreign
exchange rates. In addition, the group uses forward exchange
agreements and currency options for a portion of the foreign
currency needed for purchases of aircraft and jet fuel to stabilize
and limit payment amounts on a yen conversion basis. However,
there are limits to the extent to which the group can reduce and
offset costs by adjusting fares and charges should costs increase
due to the rapid depreciation of the yen in the foreign exchange
market over a short period of time. Accordingly, such an occurrence
could, depending on hedge positions and other factors, affect the
group’s profit and expenditures. Conversely, if the yen should
appreciate rapidly in the foreign exchange market over a short
period of time, hedge positions and other factors could preclude the
immediate reflection of foreign currency-denominated expenditures
on a yen-equivalent basis in lower fuel expenses, affecting the
group’s ability to enjoy the benefits of the appreciation of the yen.
114
115
Financial / Data Section
Operating Risks
(14) Risks Related to Air Safety
1. Aircraft Accidents
An aircraft accident involving a flight operated by the group or a
code-share partner could cause a drop in customer confidence and
impair the group’s public reputation, creating a medium- to long-
term downturn in demand that could significantly affect the group’s
performance.
Major accidents suffered by other airlines could similarly lead to a
reduction in air transportation demand that could affect the group’s
performance. An aircraft accident would give rise to significant
expenses including compensation for damages and the repair or
replacement of aircraft, but aviation insurance would not cover all
such direct expenses.
2. Violations of the Civil Aeronautics Act, etc.
ANA Group business operations are required to comply with the
Civil Aeronautics Act and notifications from government agencies.
Serious violations of the Civil Aeronautics Act could result in disad-
vantageous treatment (administrative penalties, administrative
guidance). In the past, the ANA Group has received a Business
Improvement Order due to violations of warnings related to insuffi-
cient maintenance and excessive consumption of alcohol among
flight crew. In addition to the negative impact on confidence in ANA
Group operational safety, this kind of disadvantageous treatment
could lead to a suspension of operations or revocation of business
licenses, depending on recurrence or the severity of the violation.
Such disadvantageous treatment could have a serious impact on
Group performance.
3. Technical Circular Directives
If an issue arises that significantly compromises the safety of an
aircraft, MLIT by law will issue a technical circular directive. In some
cases, all aircraft of the same model may be grounded until the
measures to improve the airworthiness of the aircraft and equipment
have been implemented as directed.
Even when the law does not require a directive to be issued,
in some cases when safety cannot be confirmed from a technical
perspective, operation of the model in question may be voluntarily
suspended and inspections and other maintenance activities may
be performed. The occurrence of such a situation could affect the
group’s safety credibility or performance. Any major or medium- to
long-term defects or technical problems in Group mainstay aircraft
models, including the Boeing 777, Boeing 787, Boeing 767, Boeing
737, Airbus A320, and Airbus A321, etc., could have a serious
impact on the group’s performance.
(15) Risks Related to Unauthorized Disclosure of
Customer Information and Other Data
The group holds a large amount of information relating to custom-
ers, such as that pertaining to the approximately 37.44 million
members (as of the end of March 2021) of the ANA Mileage Club.
The Personal Information Protection Law of Japan and similar laws
in countries overseas require proper management of such personal
information. The group has established a privacy policy, apprised
customers of the group’s stance regarding the handling of personal
information, and established measures to counter any foreseeable
contingency to ensure information security, including in its IT sys-
tems. In addition, work procedures and information systems
are continuously monitored and revised to eliminate any potential
security gaps. Despite these precautions, the occurrence of a major
leak of personal information caused by unauthorized access, an
error in conducting business, or some other factor could carry
significant costs, in terms of both compensation and loss of
public confidence, which could affect the group’s performance.
(16) Risks Related to IT (System Failures)
The group is highly dependent on information systems for such
critical functions as customer service and operational management.
A major disruption of one of those systems or of telecommunica-
tions networks caused by natural disasters, accidents, computer
viruses or unauthorized access, power supply constraints, large-
scale power outages, or system failures or malfunctions would
make it difficult to maintain customer service and operations and
would result in a loss of public confidence, which could affect the
Group’s performance. Further, the group’s information systems are
also used by partner airlines so there is a possibility that the impact
of systems failure would not be limited to the group.
(17) Risks Related to Personnel and Labor
Many Group employees belong to labor unions. Events including a
collective strike by Group employees could have an effect on the
group’s aircraft operation.
(18) Risk of Inability to Secure Required Personnel
Although demand is currently continuing to decline due to the
impact of COVID-19, we expect demand for flight crew and other
personnel to increase again in the future when demand recovers
and we expand the scale of LCC operations. At the same time, a
certain period of time is required to cultivate and train flight crews
and other personnel. Inability to secure the required number of
competent flight crews and other personnel in a timely manner
could affect the group’s performance. In addition, a change of the
supply–demand balance, in labor markets could lead to personnel
shortages in airport handling and other operations, as well as a
sharp increase in wage levels.
(19) Risks Related to Profit Structure
Expenses that are largely unaffected by passenger load factors such
as aircraft expenses, as well as fuel expenses, and landing and
navigation fees which are largely determined by the type of aircraft,
account for a significant proportion of the group’s costs, which limits
the group’s ability to immediately change the scale of its operations
in response to changes in economic conditions. Therefore,
decreases in the number of passengers or volume of cargo could
have a large impact on the group’s revenues and expenses.
Moreover, a significant decrease in demand during the summer
could affect the group’s performance for that fiscal year, as passenger
service sales typically increase during summer.
(20) Financial Risks
1. Increase in the Cost of Financing
The group raises funds to acquire aircraft primarily through bank
loans and bond issuances. However, the cost of financing could
increase due to deteriorating conditions in the airline industry,
turmoil in capital and financial markets, changes in the tax system
or government interest policy, changes to the guarantee systems
at governmental financial institutions, or a downgrade of the
Company’s credit rating that makes it difficult or impossible to
finance on terms advantageous to the group. Such eventualities
could affect the group’s performance.
In addition, the procurement of large amounts of interest-bearing
debt may have an adverse effect on the securing of working capital
and investment funds as a result of the interest burden and funds
required for repayment.
2. Risks Related to Asset Impairment or Other Issues
The group owns extensive property and equipment as a function of
its businesses. If the profitability of various operations deteriorates,
or a decision is made to sell assets, the group may be required to
recognize impairment losses or loss on sales related to assets or
investment securities.
3. Risks Related to Deferred Tax Assets
Declines in estimated future taxable income due to deterioration in
business profits may lead to a reversal of deferred tax assets and
the recording of a loss.
(21) Risks Related to Litigation
The group could be subject to various lawsuits in connection with
its business activities, which could affect the Group’s performance.
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117
Financial / Data Section
Consolidated Financial Statements
Consolidated Balance Sheet
ANA HOLDINGS INC. and its consolidated subsidiaries
As of March 31, 2021
As of March 31
ASSETS
Current assets:
Cash and deposits (Notes 16 and 21)
Marketable securities (Notes 5 and 16)
Notes and accounts receivable (Note 16)
Accounts receivable from and advances to unconsolidated subsidiaries and affiliates
Lease receivables and investments in leases (Note 8)
Inventories (Notes 6, 8 and 23)
Prepaid expenses and other
Allowance for doubtful accounts
Total current assets
Property and equipment:
Land (Note 8)
Buildings and structures (Note 8)
Aircraft (Note 8)
Machinery and equipment
Vehicles
Furniture and fixtures
Lease assets (Note 13)
Construction in progress
Total
Accumulated depreciation
Net property and equipment
Investments and other assets:
Investment securities (Notes 5 and 16)
Investments in and advances to unconsolidated subsidiaries and affiliates (Note 7)
Lease and guaranty deposits
Deferred tax assets (Note 11)
Goodwill
Intangible assets
Other assets
Total investments and other assets
TOTAL (Note 18)
500,980
107,573
3,763
19,112
38,855
91,511
(231)
98,944
2,851
22,823
67,312
141,123
(538)
971,664
33,989
172,631
350,961
826,582
(2,086)
1,226,302
571,162
11,076,704
48,748
301,266
53,886
306,084
440,321
2,721,217
1,943,795
2,120,347
17,557,537
101,014
112,343
33,525
64,772
10,660
32,741
65,428
11,170
912,419
302,818
585,060
96,287
198,389
180,005
1,791,970
2,702,169
2,882,004
24,407,632
(1,255,862)
(1,301,678)
(11,343,708)
1,446,307
1,580,326
13,063,923
129,930
108,156
1,173,606
34,245
15,526
219,618
22,346
87,839
25,770
535,274
42,322
18,501
99,824
24,461
101,062
14,339
408,665
309,321
140,240
1,983,723
201,842
793,415
232,770
4,834,920
¥ 3,207,883
¥ 2,560,153
$28,975,548
Yen (Millions)
2021
2020
U.S. dollars
(Thousands)
(Note 2)
2021
As of March 31
LIABILITIES AND EQUITY
Current liabilities:
Yen (Millions)
2021
2020
U.S. dollars
(Thousands)
(Note 2)
2021
¥ 464,739
¥ 109,447
$ 4,197,805
Short-term loans (Notes 8 and 16)
¥ 100,070
¥
429
$
903,893
129,200
4,525,155
Current portion of long-term debt (Notes 8 and 16)
Accounts payable (Note 16)
Accounts payable to unconsolidated subsidiaries and affiliates
Advance ticket sales
Accrued expenses
Income taxes payable
Other current liabilities (Note 10)
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 8 and 16)
Liability for retirement benefits (Note 9)
Deferred tax liabilities (Note 11)
Asset retirement obligations (Note 10)
Other long-term liabilities
Total long-term liabilities
Contingent liabilities (Note 15)
Equity (Note 14):
Common stock:
Authorized – 510,000,000 shares;
72,966
182,241
2,508
44,718
39,286
10,696
50,920
107,878
196,391
4,325
111,827
36,974
8,441
64,281
659,073
1,646,111
22,653
403,920
354,855
96,612
459,940
503,405
530,546
4,547,059
1,482,416
160,885
222
1,153
47,482
734,555
163,384
112
1,224
61,462
13,390,082
1,453,211
2,005
10,414
428,886
1,692,158
960,737
15,284,599
Issued
– 484,293,561 shares in 2021 and 348,498,361 shares in 2020
Capital surplus
Retained earnings
467,601
407,329
145,101
318,789
258,470
550,839
4,223,656
3,679,243
1,310,640
Treasury stock – 13,950,901 shares in 2021 and 13,978,652 shares in 2020
(59,335)
(59,435)
(535,949)
Accumulated other comprehensive income:
Unrealized gain on securities
Deferred gain (loss) on derivatives under hedge accounting
Foreign currency translation adjustments
Defined retirement benefit plans
Total
Non-controlling interests
Total equity
TOTAL
See accompanying notes to consolidated financial statements.
38,468
21,652
2,666
(16,249)
22,120
(14,595)
2,668
(17,828)
1,007,233
1,061,028
5,087
7,842
347,466
195,574
24,080
(146,770)
9,097,940
45,948
1,012,320
1,068,870
9,143,889
¥3,207,883
¥2,560,153
$28,975,548
118
119
Financial / Data Section
Consolidated Statement of Comprehensive Income
ANA HOLDINGS INC. and its consolidated subsidiaries
Year Ended March 31, 2021
Year Ended March 31
Net (loss) income
Other comprehensive income (loss) (Note 12):
Unrealized gain (loss) on securities
Deferred gain (loss) on derivatives under hedge accounting
Foreign currency translation adjustments
Defined retirement benefit plans
Share of other comprehensive income (loss) in affiliates
Total other comprehensive income (loss) (Note 12)
Comprehensive loss
Total comprehensive loss attributable to:
Owners of the parent
Non-controlling interests
See accompanying notes to consolidated financial statements.
Yen (Millions)
2021
¥(407,690)
2020
¥ 25,919
16,253
36,242
31
1,606
323
54,455
¥(353,235)
(15,369)
(25,227)
(221)
539
(383)
(40,661)
¥(14,742)
U.S. dollars
(Thousands)
(Note 2)
2021
$(3,682,503)
146,806
327,359
280
14,506
2,917
491,870
$(3,190,633)
¥(350,452)
(2,783)
¥(12,749)
(1,993)
$(3,165,495)
(25,137)
Consolidated Statement of Operations
ANA HOLDINGS INC. and its consolidated subsidiaries
Year Ended March 31, 2021
Year Ended March 31
Operating revenues (Note 18)
Cost of sales (Notes 9 and 23)
Gross (loss) profit
Selling, general and administrative expenses (Notes 9 and 19)
Operating (loss) income (Note 18)
Other income (expenses):
Interest income
Dividend income
Equity in earnings of unconsolidated subsidiaries and affiliates
Foreign exchange gain, net
Gain on sales of assets
Gain on donation of non-current assets
Interest expenses
Equity in losses of unconsolidated subsidiaries and affiliates
Loss on sales of assets
Loss on disposal of assets
Commission fee (Note 23)
Loss on valuation of derivatives (Note 23)
Impairment loss (Note 22)
Business restructuring expense (Note 23)
Other, net (Note 23)
Other income (expenses), net
(Loss) income before income taxes
Income taxes (Note 11):
Current
Deferred
Total income taxes
Net (loss) income
Net loss attributable to non-controlling interests
Net (loss) income attributable to owners of the parent
Yen (Millions)
2021
¥ 728,683
1,000,000
(271,317)
193,457
(464,774)
2020
¥1,974,216
1,583,434
390,782
329,976
60,806
663
1,446
–
4,143
3,422
2,405
(16,689)
(3,630)
(2,825)
(5,609)
(7,742)
(8,044)
(4,231)
(86,350)
42,443
(80,598)
(545,372)
3,990
(141,672)
(137,682)
(407,690)
(3,066)
¥ (404,624)
¥
958
2,073
1,210
473
6,746
3,553
(6,291)
–
(302)
(7,133)
(20)
(603)
(25,159)
–
15,190
(9,305)
51,501
24,407
1,175
25,582
25,919
(1,736)
27,655
Yen
2021
2020
U.S. dollars
(Thousands)
(Note 2)
2021
$ 6,581,907
9,032,607
(2,450,700)
1,747,421
(4,198,121)
5,988
13,061
–
37,422
30,909
21,723
(150,745)
(32,788)
(25,517)
(50,663)
(69,930)
(72,658)
(38,216)
(779,965)
383,370
(728,010)
(4,926,131)
36,040
(1,279,667)
(1,243,627)
(3,682,503)
(27,693)
$(3,654,809)
U.S. dollars
(Note 2)
2021
Per share of common stock (Notes 3, 14 and 20):
Basic net (loss) income
Cash dividends applicable to the year
¥(1,082.04)
–
¥82.66
–
$(9.77)
–
Net income per share assuming full dilution is not disclosed as the Company had no potentially dilutive shares outstanding during the years ended March 31, 2021 and 2020.
See accompanying notes to consolidated financial statements.
120
121
Financial / Data Section
Consolidated Statement of Changes in Equity
ANA HOLDINGS INC. and its consolidated subsidiaries
Year Ended March 31, 2021
Consolidated Statement of Cash Flows
ANA HOLDINGS INC. and its consolidated subsidiaries
Year Ended March 31, 2021
Thousands
Number of
shares of
common stock
outstanding
Common
stock
Capital
surplus
Retained
earnings
Treasury
stock
Total
shareholders’
equity
Unrealized
gain on
securities
Deferred
gain (loss) on
derivatives
under hedge
accounting
Foreign
currency
translation
adjustments
Defined
retirement
benefit plans
Non-
controlling
interests
Total
Total equity
Yen (Millions)
Accumulated other comprehensive income
334,629
¥318,789
¥258,448
¥ 548,439
¥(59,032) ¥1,066,644
¥ 37,622
¥ 10,636
¥2,873
¥(18,362)
¥ 32,769
¥ 9,900 ¥1,109,313
(125)
15
27,655
(25,105)
27,655
(25,105)
(453)
(453)
50
50
22
(150)
(150)
22
27,655
(25,105)
(453)
50
22
(150)
–
22
2,400
(403)
2,019
(15,502)
(25,231)
(205)
534
(40,404)
(2,058)
(40,443)
–
(15,502)
(25,231)
(205)
534
(40,404)
(2,058)
(42,462)
Balance at March 31, 2019
N et income attributable to
owners of the parent
C ash dividends ¥75.00 per
share (Note 14)
P urchase of treasury stock
(Note 14)
D isposal of treasury stock
(Note 14)
C hange in the parent’s
ownership interest due
to transactions with
non-controlling interests
C hanges in scope of
consolidation
N et changes in the year
Total changes during the
fiscal year
Balance at March 31, 2020
Issuance of new shares
334,519
135,795
318,789
148,812
258,470
148,812
550,839
(59,435)
1,068,663
297,624
22,120
(14,595)
2,668
(17,828)
(7,635)
7,842
1,068,870
297,624
(404,624)
(13)
112
48
(660)
(454)
(5)
32
N et loss attributable to owners
of the parent
P urchase of treasury stock
(Note 14)
D isposal of treasury stock
(Note 14)
C hange in the parent’s
ownership interest due
to transactions with
non-controlling interests
C hanges in scope of
consolidation
C hanges in scope of
equity method
Net changes in the year
Total changes during the
fiscal year
(404,624)
(404,624)
(1)
48
(660)
(454)
(13)
113
(13)
112
48
(660)
(454)
148,812
148,859
(405,738)
100
(107,967)
16,348
36,247
–
16,348
36,247
(2)
(2)
1,579
54,172
(2,755)
51,417
1,579
54,172
(2,755)
(56,550)
Balance at March 31, 2021
470,342
¥467,601
¥407,329
¥ 145,101
¥(59,335) ¥ 960,696
¥ 38,468
¥ 21,652
¥2,666
¥(16,249)
¥ 46,537
¥ 5,087 ¥1,012,320
Thousands
Number of
shares of
common stock
outstanding
334,519
135,795
(5)
32
Balance at March 31, 2020
Issuance of new shares
N et loss attributable to owners
of the parent
P urchase of treasury stock
(Note 14)
D isposal of treasury stock
(Note 14)
C hange in the parent’s
ownership interest due
to transactions with
non-controlling interests
C hanges in scope of
consolidation
C hanges in scope of
equity method
N et changes in the year
Total changes during the
fiscal year
Common
stock
Capital
surplus
Retained
earnings
Treasury
stock
U.S. dollars (Thousands) (Note 2)
Accumulated other comprehensive income
Total
shareholders’
equity
Unrealized
gain on
securities
Deferred
gain (loss) on
derivatives
under hedge
accounting
Foreign
currency
translation
adjustments
Defined
retirement
benefit plans
Non-
controlling
interests
Total
Total equity
$2,879,495 $2,334,658 $ 4,975,512 $(536,853) $ 9,652,813 $199,801 $(131,830)
1,344,160
1,344,160
2,688,320
$24,098 $(161,033) $ (68,963) $ 70,833 $ 9,654,683
2,688,320
(3,654,809)
(3,654,809)
(3,654,809)
(117)
(117)
(9)
1,020
1,011
433
(5,961)
(4,100)
433
(5,961)
(4,100)
(117)
1,011
433
(5,961)
(4,100)
1,344,160
1,344,584 (3,664,872)
903
(975,223)
147,665
327,404
(18)
14,262
489,314
(24,884)
(510,793)
–
147,665
327,404
(18)
14,262
489,314
(24,884)
464,429
Balance at March 31, 2021
470,342
$4,223,656 $3,679,243 $ 1,310,640 $(535,949) $ 8,677,590 $347,466 $ 195,574
$24,080 $(146,770) $420,350 $ 45,948 $ 9,143,889
See accompanying notes to consolidated financial statements.
122
Year Ended March 31
Cash flows from operating activities:
(Loss) income before income taxes
Adjustments for:
Depreciation and amortization (Note 18)
Impairment loss (Note 22)
Amortization of goodwill (Note 18)
Loss on disposal and sales of property and equipment
Loss (gain) on sales and valuation of investment securities
Loss on sales of shares of subsidiaries and affiliates
(Decrease) increase in allowance for doubtful accounts
(Decrease) increase in liability for retirement benefits
Interest and dividend income
Interest expenses
Subsidies for employment adjustment
Foreign exchange (gain) loss
(Increase) decrease in notes and accounts receivable
Decrease (increase) in other current assets
Decrease in notes and accounts payable
Decrease in advance ticket sales
Other, net
Subtotal
Interest and dividends received
Interest paid
Proceeds from subsidy income
Income taxes refunded (paid)
Net cash (used in) provided by operating activities
Cash flows from investing activities:
Increase in time deposits
Proceeds from withdrawal of time deposits
Purchases of marketable securities
Proceeds from redemption of marketable securities
Purchases of property and equipment
Proceeds from sales of property and equipment
Purchases of intangible assets
Purchases of investment securities
Proceeds from sales of investment securities
Proceeds from withdrawal of investments in securities
Other, net
Net cash used in investing activities
Cash flows from financing activities:
Increase in short-term loans, net
Proceeds from long-term loans
Repayment of long-term loans
Proceeds from issuance of bonds
Repayment of bonds
Repayment of finance lease obligations
Payment for purchases of investments in subsidiaries with no changes in scope of consolidation
Proceeds from issuance of shares
Proceeds from share issuance to non-controlling shareholders
Net decrease (increase) of treasury stock
Payment for dividends
Other, net
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Net (decrease) increase resulting from changes in scope of consolidation
Cash and cash equivalents at end of year (Note 21)
See accompanying notes to consolidated financial statements.
Yen (Millions)
2021
2020
U.S. dollars
(Thousands)
(Note 2)
2021
¥ (545,372)
¥ 51,501
$(4,926,131)
176,352
75,575
2,115
10,759
8,058
–
(251)
(44)
(2,109)
16,689
(43,470)
(2,454)
(5,107)
52,880
(25,160)
(67,109)
49,496
(299,152)
2,427
(12,466)
38,001
749
(270,441)
(372,626)
162,300
(437,280)
154,870
(134,174)
54,415
(22,536)
(7,168)
746
2,527
3,167
175,739
25,159
4,006
689
(269)
7
419
5,503
(3,031)
6,291
–
273
82,312
(9,284)
(38,045)
(107,123)
(14,510)
179,637
3,831
(6,371)
–
(46,928)
130,169
(55,819)
50,789
(175,070)
159,200
(317,604)
151,652
(33,757)
(8,339)
1,309
–
(2,579)
1,592,918
682,639
19,103
97,181
72,784
–
(2,267)
(397)
(19,049)
150,745
(392,647)
(22,166)
(46,129)
477,644
(227,260)
(606,169)
447,077
(2,702,122)
21,922
(112,600)
343,248
6,765
(2,442,787)
(3,365,784)
1,465,992
(3,949,778)
1,398,879
(1,211,941)
491,509
(203,558)
(64,745)
6,738
22,825
28,606
(595,759)
(230,218)
(5,381,257)
97,747
827,988
(98,949)
–
(20,000)
(4,668)
–
296,098
318
99
–
(461)
1,098,172
2,649
234,621
135,937
(236)
98
96,684
(82,035)
69,586
(30,000)
(4,609)
(96)
–
–
(405)
(25,105)
(249)
23,869
(274)
(76,454)
211,838
553
882,910
7,478,890
(893,767)
–
(180,652)
(42,164)
–
2,674,537
2,872
894
–
(4,164)
9,919,356
23,927
2,119,239
1,227,865
(2,131)
¥ 370,322
¥ 135,937
$ 3,344,973
123
Financial / Data Section
Notes to Consolidated Financial Statements
ANA HOLDINGS INC. and its consolidated subsidiaries
Year Ended March 31, 2021
1. Basis of presenting consolidated financial statements
The accompanying consolidated financial statements of ANA HOLDINGS INC. (hereinafter referred to as the “Company”) and its consolidated
subsidiaries have been prepared in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Act and its
related accounting regulations and in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”), which are different
in certain respects as to the application and disclosure requirements of International Financial Reporting Standards (“IFRS”).
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to the consolidated financial
statements issued domestically in order to present them in a form which is more familiar to readers outside Japan. In addition, certain reclassifica-
tions have been made in the consolidated financial statements of the previous fiscal year to conform to the classifications used in the current
fiscal year.
(e) Inventories
Inventories include aircraft spare parts, supplies and stock in trade of consolidated subsidiaries, and are stated at cost, principally determined by
the moving-average method. The net book value of inventories in the consolidated balance sheet is written down when their net realizable value
is less than book value. See Note 6 “Inventories” and Note 23 “Supplementary information for the consolidated statement of operations” for
additional information.
(f) Property and equipment (excluding leased assets)
Property and equipment, excluding leased assets, are stated at cost less accumulated depreciation. Depreciation of property and equipment is
computed based on the estimated useful lives. Major assets are depreciated by the following method:
Buildings ................................. Straight-line method
Aircraft .................................... Straight-line method
2. Translation of financial statements
The Company and certain subsidiaries employ principally the following useful lives for major property and equipment, based upon the Company’s
estimate of durability:
The consolidated financial statements presented herein are expressed in Japanese yen and, solely for the convenience of readers outside of
Japan, have been translated into U.S. dollars at the rate of ¥110.71 = US$1, the approximate exchange rate prevailing on the Tokyo Foreign
Exchange Market on March 31, 2021. This translation should not be construed as a representation that the amounts shown could be converted
into U.S. dollars at that or any other rate. Translations of U.S. dollars are rounded down to the nearest thousand and, therefore, the totals shown
in tables do not necessarily agree with the sums of the individual amounts.
3. Summary of significant accounting policies
(a) Consolidation
The consolidated financial statements as of March 31, 2021 include the accounts of the Company and its 56 (62 in 2020) significant subsidiaries
(collectively, the “Group”).
Under the control and influence concepts, those companies in which the Company, directly or indirectly, is able to exercise control over
operations are fully consolidated, and those companies over which the Group has the ability to exercise significant influence are accounted for by
the equity method.
Buildings ................................. 3–50 years
Aircraft .................................... 9–20 years
Major additions and improvements are capitalized at cost. Maintenance and repairs, including minor remodels and improvements, are charged to
income as incurred.
The Group reviews its long-lived assets for impairment whenever events or changes in circumstance indicate the carrying amount of an asset
or asset group may not be recoverable. The assets of the Group are grouped by individual property in the case of rental real estate, assets
determined to be sold and idle assets, and by management accounting categories in the case of business assets. An impairment loss is recog-
nized if the carrying amount of an asset or asset group exceeds the sum of the undiscounted future cash flows expected to result from
the continued use and eventual disposition of the asset or asset group. The impairment loss would be measured as the amount by which the
carrying amount of the asset exceeds its recoverable amount, which is the higher of the discounted cash flows from the continued use
and eventual disposition of the asset or the net selling price at disposition. See Note 22 “Impairment loss” for additional information.
(g) Intangible assets and amortization (excluding leased assets)
Intangible assets are amortized principally by the straight-line method. Cost of software purchased for internal use is amortized by the straight-
line method over five years, the estimated useful life of purchased software.
Investments in 14 (16 in 2020) unconsolidated subsidiaries and significant affiliates are accounted for by the equity method.
(h) Retirement benefits
The difference between the cost and the underlying net assets at dates of acquisition of consolidated subsidiaries and companies accounted for
by the equity method is amortized using the straight-line method over a period of 10 to 15 years.
Investments in 97 (95 in 2020) subsidiaries and affiliates which are not consolidated or accounted for by the equity method are stated at cost.
If the equity method of accounting had been applied to the investments in these companies, the effect on the accompanying consolidated
financial statements would not be material.
All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealized profit included in assets
resulting from transactions within the Group is also eliminated.
Certain subsidiaries have fiscal years ending on December 31 and February 28, and necessary adjustments for significant transactions, if any, are
made in consolidation.
(b) Foreign currency translation
All short-term and long-term monetary receivables and payables denominated in foreign currencies are translated into yen at the rates of
exchange in effect at the balance sheet date, except for payables and receivables hedged by qualified forward exchange contracts, and differ-
ences arising from the translation are included in the consolidated statement of operations.
The balance sheet accounts of consolidated foreign subsidiaries are translated into yen at the rates of exchange in effect at the balance sheet
date, except for the components of equity excluding non-controlling interests which are translated at their historical exchange rates. Revenue and
expense accounts are translated at the average rate of exchange in effect during the year. Differences arising from the translation are presented
as foreign currency translation adjustments in equity.
(c) Marketable securities and investment securities
Marketable securities and investment securities are classified into three categories: trading, held-to-maturity or available-for-sale. Under the
accounting standard, trading securities are carried at fair value and held-to-maturity securities are carried at amortized cost. Marketable securities
classified as available-for-sale securities are carried at fair value with changes in unrealized holding gain or loss, net of the applicable income
taxes, included directly in equity. Non-marketable securities classified as available-for-sale securities are carried at cost, determined by the
moving-average method. See Note 5 “Marketable securities and investment securities” for additional information.
(d) Allowance for doubtful accounts
The allowance for doubtful accounts is stated in amounts considered to be appropriate based on the Group’s past credit loss experience and an
evaluation of potential losses in the receivables outstanding.
The retirement benefit plans of the Group cover substantially all employees other than directors and corporate auditors. Under the terms of this
plan, eligible employees are entitled, upon mandatory retirement or earlier voluntary severance, to lump-sum payments or annuity payments
based on their compensation at the time of leaving and years of service with the Company and subsidiaries.
The Company and certain significant domestic subsidiaries have trustee employee pension funds to provide coverage for part of the lump-sum
benefits or annuity payments.
The Company and certain consolidated subsidiaries sponsor defined contribution pension plans as well as defined benefit pension plans.
The Company accounts for the liability for retirement benefits based on the projected benefit obligations and plan assets at the balance sheet
date. The projected benefit obligations are attributed to periods on a benefit formula basis. Actuarial gains and losses and past service costs
that are yet to be recognized in profit or loss are recognized within equity (accumulated other comprehensive income), after adjusting for
tax effects, and are recognized in profit or loss over the average remaining service years of employees.
(i) Income taxes
The provision for income taxes is computed based on the pretax income included in the consolidated statement of operations. The asset and
liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences
between the carrying amounts and the tax bases of assets and liabilities. Deferred taxes are measured by applying currently enacted income tax
rates to the temporary differences. See Note 11 “Income taxes” for additional information.
(j) Leases
Leased assets arising from transactions under finance lease contracts are depreciated to a residual value of zero by the straight-line method
using the term of the contract as the useful life.
(k) Derivatives
The Group uses derivatives, such as forward foreign currency exchange contracts, interest rate swaps, and commodity options and swaps to
limit its exposure to fluctuations in foreign currency exchange rates, interest rates and commodity prices. The Group does not use derivatives for
trading purposes.
124
125
Financial / Data Section Notes to Consolidated Financial Statements
Derivative financial instruments are carried at fair value with changes in unrealized gains or losses charged or credited to income, except for those
which meet the criteria for deferral hedge accounting under which an unrealized gain or loss is deferred. Receivables and payables hedged by
qualified forward exchange contracts are translated at the corresponding foreign exchange contract rates. Interest rate swaps that qualify for
hedge accounting and meet specific matching criteria are not measured at fair value, but the differential paid or received under the swap agree-
ments is recognized and included in interest expenses.
(l) Revenue recognition
Passenger revenues, cargo and other operating revenues are recorded when services are provided.
(m) Cash equivalents
Cash equivalents are short-term investments that are readily convertible into cash and exposed to insignificant risk of changes in value.
Cash equivalents include time deposits and negotiable certificates of deposit, all of which mature or become due within three months of
the date of acquisition. See Note 21 “Supplementary cash flow information” for additional information.
(n) Per share information
Basic net income per share is computed by dividing net income attributable to common shareholders by the weighted-average number of
common shares outstanding for the period, retroactively adjusted for stock splits.
Diluted net income per share reflects the potential dilution that could occur if securities were exercised or converted into common stock. Diluted
net income per share of common stock assumes full conversion of the outstanding convertible notes and bonds at the beginning of the year (or
at the time of issuance) with an applicable adjustment for related interest expense, net of tax, and full exercise of outstanding warrants.
Diluted net income per share is not presented as the effect of including potential common shares is anti-dilutive.
Cash dividends per share presented in the accompanying consolidated statement of operations are dividends applicable to the respective fiscal
years, including dividends to be paid after the end of the year.
(o) Share remuneration plan for directors
The Company has transactions for delivery of the Company’s treasury stock through a trust as a share remuneration plan (the “Trust for Delivery
of Shares to Directors”) in order to improve its operating performance, increase its corporate value, and raise the directors’ awareness of
shareholder-oriented management.
The Company operates the ANA Mileage Club and the mileage granted in response to the use of passenger transportation services, etc. can be
used to receive services provided by the Group and the partner companies in the future. In order to prepare for the use of the granted mileage,
the estimated future expenditure was recorded as accounts payable, but the method has been changed to identify the granted mileage as a
performance obligation and allocate the transaction price.
In addition, the Company will adopt the method of recognizing the cumulative effect on the application start date, which is accepted as a transi-
tional measure. The impact of the application of this accounting standard on the consolidated financial statements is currently being evaluated.
“Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30 – July 4, 2019)
“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31 – July 4, 2019)
“Accounting Standard for Measurement of Inventories” (ASBJ Statement No. 9 – July 4, 2019)
“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10 – July 4, 2019)
“Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 – March 31, 2020)
(1) Overview
The IASB and FASB established almost the same detailed implementation guidance for Fair Value Measurement (IFRS 13 and Topic 820 issued
by the IASB and FASB, respectively).
The ASBJ has since made efforts to align Japanese GAAP to International Accounting Standards, so as to incorporate the aforementioned
implementation guidance for Fair Value Measurement and Disclosures. This resulted in the issuance of ASBJ Statement No. 30, “Accounting
Standard for Fair Value Measurement.”
The ASBJ’s primary policy for developing its Accounting Standard for Fair Value Measurement was to include the basic principles of IFRS 13 for
the purpose of comparability between financial statements in accordance with Japanese GAAP and those in accordance with IFRS or accounting
principles generally accepted in the United States of America. Also, for particular items for which industrial practice should be taken into consid-
eration, alternative means are to be provided to the extent that comparability is maintained.
(2) Application date
The Company will apply the accounting standard and guidance for annual periods beginning on or after April 1, 2021, and the application of the
accounting standard is not expected to have a significant impact on the consolidated financial statements for the next fiscal year.
(1) Transaction outline
Trust for Delivery of Shares to Directors is a system in which funds are contributed by the Company, and shares acquired are distributed to the
Company’s directors in accordance with the Company’s operating performance, etc.
(q) Changes in presentation method
(Accounting Standard for Disclosure of Accounting Estimates)
(2) The Company’s treasury stock remaining in the trust
The Company’s treasury stock remaining in the trust is recorded at book value (excluding associated expenses) of the trust and is reflected as
treasury stock in equity. The book value was ¥717 million for the previous fiscal year and ¥608 million for the current fiscal year. The number of
shares was 209 thousand shares for the previous fiscal year and 178 thousand shares for the current fiscal year.
(p) Unapplied new accounting standard
“Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 29 – March 31, 2020)
“Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30 – March 31, 2020)
(1) Overview
The International Accounting Standards Board (“IASB”) and Financial Accounting Standards Board (“FASB”) issued a new revenue standard,
“Revenue from Contracts with Customers” (International Financial Reporting Standard 15 (“IFRS 15”) and Accounting Standard Codification 606
(“Topic 606”) issued by the IASB and FASB, respectively), on May 2014.
Against the background of the fact that IFRS 15 will be effective from periods beginning on or after January 1, 2018 and Topic 606 will be
effective from periods beginning on or after December 15, 2017, the ASBJ issued ASBJ Statement No. 29, “Accounting Standard for Revenue
Recognition,” and ASBJ Guidance No. 30, “Implementation Guidance on Accounting Standard for Revenue Recognition.” The core principle of
the standard and guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an
amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
The ASBJ’s primary policy for developing its accounting standard for revenue recognition was to include the basic principles of IFRS 15 for the
purpose of comparability between financial statements in accordance with Japanese GAAP and those in accordance with IFRS or accounting
principles generally accepted in the United States of America. Also, for particular items for which industrial practice should be taken into consid-
eration, alternative means are to be provided to the extent that comparability is maintained.
(2) Application date
The Company will apply the accounting standard and guidance for annual periods beginning on or after April 1, 2021, and when the control of
the promised good or service gives the customer, the Company will recognize the revenue in terms of the amount expected to be received in
exchange for them. The main changes due to the application of “Accounting Standards for Revenue Recognition” are as follows.
The Group has adopted the “Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No. 31, March 31, 2020), and has
included notes to significant accounting estimates in the consolidated financial statements. However, it does not describe the details related to
the previous fiscal year.
4. Significant Accounting Estimates
(1) Recoverability of deferred tax assets
(i) Amount recorded in the consolidated financial statements
Deferred tax assets
(ii) Other information of accounting estimates
Yen (Millions)
2021
¥219,618
U.S. dollars
(Thousands)
2021
$1,983,723
The Group recorded deferred tax assets of ¥219,618 million ($1,983,723 thousand) related to tax loss carryforwards, etc. for the current consoli-
dated fiscal year due to a significant decrease in demand for airline passengers associated with the spread of the novel coronavirus (COVID-19).
The Company and certain of its domestic subsidiaries apply the consolidated corporate-tax system, and the corporations subject to the consoli-
dated corporate-tax system make judgments on the recoverability based on the future taxable income, etc. of the tax consolidated group with
regard to corporate taxes (national taxes), and make judgments on the recoverability of deferred tax assets based on the future taxable income,
etc. of each corporation with regard to local taxes. With respect to tax loss carryforwards, the Company estimates the expected year and amount
to be deducted from the total of tax loss carryforwards based on the estimated future taxable income and record the amount expected to be
recovered as deferred tax assets.
The future taxable income of ANA Holdings Inc. and All Nippon Airways Co., Ltd., which constitutes a significant portion of the future taxable
income that provides a basis for scheduling the amount expected to be deducted, is estimated based on a future plan that assumes that the
demand for domestic passengers and international passengers will recover to the pre-pandemic level of 2019 by the end of the fiscal years
ending March 31, 2022 and March 31, 2024, respectively.
These assumptions are highly uncertain, and if the impact of COVID-19 is prolonged, it may have a significant impact on the consolidated
financial statements for the following fiscal year or thereafter.
126
127
Financial / Data Section Notes to Consolidated Financial Statements
(2) Impairment of the assets to be sold
(i) Amounts recorded in the consolidated financial statements
Aircraft to be sold
Land, buildings and structures, etc. to be sold
(ii) Other information of accounting estimates
Yen (Millions)
2021
¥7,713
8,664
U.S. dollars
(Thousands)
2021
$69,668
78,258
During the current consolidated fiscal year, the Company decided to implement “Transformative Measures to a New Business Model” in order to
respond to the significant decrease in air passenger demand due to the impact of COVID-19, and decided on the early retirement of certain
aircraft and selling the training facilities to implement cost structure reform, which is one of the main response measures. As a result, the
Company identified indicators of impairment for aircraft and training facilities to be sold, and recognized an impairment loss of ¥71,344 million
($644,422 thousand) in business restructuring expense recorded during the current consolidated fiscal year, using net realizable value as the
correctable amount. Of such amount, impairment loss related to the aircraft and training facilities for which the sale is not completed at the end of
the current consolidated fiscal year is ¥59,743 million ($539,635 thousand).
Considering the impact of the decrease in air passenger demand due to the spread of COVID-19, net realizable value of aircraft is not calculated
based on the assumption of reuse as aircraft, but is calculated by deducting estimated disposal costs from the estimated realizable value
reasonably calculated based on the Company’s most recent actual sales results. Net realizable value of training facilities is calculated based on
the real estate appraisal value presented by outside experts using the sales comparison approach.
(3) Goodwill impairment related to the Air Transportation Business
(i) Amount recognized in the consolidated financial statements
Goodwill related to the Air Transportation Business
(ii) Other information of accounting estimates
Yen (Millions)
2021
¥22,002
U.S. dollars
(Thousands)
2021
$198,735
During the current consolidated fiscal year, due to the significant decline in air travel demand resulting from the impact of COVID-19, the
Company identified indicators of impairment with respect to the goodwill that occurred when the Company made Peach Aviation Limited a
consolidated subsidiary in April 2017. With respect to such goodwill, the Company determined that no impairment loss was recognized because
the undiscounted future cash flows from Peach Aviation’s air transportation business exceeded the book values.
These undiscounted future cash flows were determined by the management’s best estimate and judgment, based on the business plan with the
assumption that the negative impact of COVID-19 on the growth rate and the unit price of passenger revenue, etc. will gradually decrease after
2021.
This assumption may be affected by the changes in uncertain economic conditions in the future and, if review of such assumption becomes
necessary, it may have a material effect on the consolidated financial statements for subsequent consolidated fiscal years.
5. Marketable securities and investment securities
Marketable and investment securities at March 31, 2021 and 2020 are summarized as follows:
Current:
Negotiable certificates of deposits
Other
Total
Non-current:
Marketable equity securities
Other
Total
Yen (Millions)
2021
2020
¥500,980
–
¥500,980
¥106,657
23,273
¥129,930
¥129,200
–
¥129,200
¥ 84,141
24,014
¥108,156
U.S. dollars
(Thousands)
2021
$4,525,155
–
$4,525,155
$ 963,390
210,215
$1,173,606
The costs and aggregate fair values of marketable and investment securities at March 31, 2021 and 2020 were as follows:
As of March 31, 2021
Securities classified as:
Available-for-sale:
Negotiable certificates of deposit
Marketable equity securities
Held-to-maturity
As of March 31, 2020
Securities classified as:
Available-for-sale:
Negotiable certificates of deposit
Marketable equity securities
Held-to-maturity
As of March 31, 2021
Securities classified as:
Available-for-sale:
Negotiable certificates of deposit
Marketable equity securities
Held-to-maturity
Cost
Unrealized gains
Unrealized losses
Fair value
Yen (Millions)
¥500,980
51,583
1,855
¥ –
55,610
3,061
¥ –
(536)
–
¥500,980
106,657
4,916
Cost
Unrealized gains
Unrealized losses
Fair value
Yen (Millions)
¥129,200
51,453
938
¥ –
36,211
1,632
¥ –
(3,523)
–
¥129,200
84,141
2,570
Cost
Unrealized gains
Unrealized losses
Fair value
U.S. dollars (Thousands)
$4,525,155
465,929
16,755
$ –
502,303
27,648
$ –
$4,525,155
(4,841)
–
963,390
44,404
The proceeds, realized gains, and realized losses on the available-for-sale securities sold during the years ended March 31, 2021 and 2020 were
as follows:
Proceeds
Gain on sales
Loss on sales
Yen (Millions)
2021
¥746
37
–
2020
¥1,309
1,122
–
U.S. dollars
(Thousands)
2021
$6,738
334
–
The breakdown of securities for which fair value cannot be reliably determined at March 31, 2021 and 2020 is as follows:
Available-for-sale
Yen (Millions)
2021
¥21,418
2020
¥23,076
U.S. dollars
(Thousands)
2021
$193,460
The redemption schedule of available-for-sale securities with maturities and held-to-maturity securities at March 31, 2021 and 2020 is
summarized as follows:
Bonds:
Within 1 year
Over 1 year to 5 years
Over 5 years to 10 years
Over 10 years
Other securities with maturities:
Within 1 year
Over 1 year to 5 years
Over 5 years to 10 years
Over 10 years
Total:
Within 1 year
Over 1 year to 5 years
Over 5 years to 10 years
Over 10 years
Yen (Millions)
2021
2020
¥ –
–
–
–
500,980
2,837
2,222
–
¥500,980
2,837
2,222
–
¥ –
–
–
–
129,200
5,299
2,025
–
¥129,200
5,299
2,025
–
U.S. dollars
(Thousands)
2021
$ –
–
–
–
4,525,155
25,625
20,070
–
$4,525,155
25,625
20,070
–
128
129
Financial / Data Section
Notes to Consolidated Financial Statements
6. Inventories
Inventories at March 31, 2021 and 2020 consisted of the following:
Inventories (Merchandise)
Inventories (Supplies)
Total
Yen (Millions)
2021
¥11,625
27,230
¥38,855
2020
¥13,490
53,822
¥67,312
U.S. dollars
(Thousands)
2021
$105,004
245,957
$350,961
7. Investments in and advances to unconsolidated subsidiaries and affiliates
Investments in and advances to unconsolidated subsidiaries and affiliates at March 31, 2021 and 2020 consisted of the following:
Investments in capital stock
Advances
Total
Yen (Millions)
2021
¥29,346
4,899
¥34,245
2020
¥37,508
4,814
¥42,322
U.S. dollars
(Thousands)
2021
$265,070
44,250
$309,321
8. Short-term loans and long-term debt
Short-term loans and current portion of long-term debt at March 31, 2021 and 2020 consisted of the following:
Short-term loans
Current portion of long-term loans
Current portion of bonds
Current portion of finance lease obligations
Total
Yen (Millions)
2021
¥100,070
69,443
–
3,523
¥173,036
2020
¥ 429
84,057
20,000
3,821
¥108,307
U.S. dollars
(Thousands)
2021
$ 903,893
627,251
–
31,821
$1,562,966
The average interest rates on the above short-term loans were 0.47% and 1.43% per annum in 2021 and 2020, respectively.
Long-term debt at March 31, 2021 and 2020 consisted of the following:
Bonds:
1.22% notes due 2024
1.20% notes due 2026
0.99% notes due 2036
0.26% notes due 2020
0.88% notes due 2037
Convertible bonds with stock acquisition rights due 2022
Convertible bonds with stock acquisition rights due 2024
0.82% notes due 2038
0.47% notes due 2028
0.27% notes due 2026
0.84% notes due 2039
0.27% notes due 2025
0.28% notes due 2029
0.69% notes due 2039
Yen (Millions)
2021
2020
¥ 30,000
15,000
20,000
–
10,000
70,000
70,000
10,000
10,000
5,000
15,000
30,000
10,000
10,000
305,000
¥ 30,000
15,000
20,000
20,000
10,000
70,000
70,000
10,000
10,000
5,000
15,000
30,000
10,000
10,000
325,000
U.S. dollars
(Thousands)
2021
$ 270,978
135,489
180,652
–
90,326
632,282
632,282
90,326
90,326
45,163
135,489
270,978
90,326
90,326
2,754,945
Loans, principally from banks:
S ecured, bearing interest from 0.07% to 2.11% in 2021 and 0.07% to 2.11% in 2020, maturing in
installments through 2057
668,770
287,827
6,040,737
U nsecured, bearing interest from 0.46% to 4.58% in 2021 and 0.46% to 2.23% in 2020, maturing
in installments through 2031
Finance lease obligations:
Finance lease agreements expiring through 2031
Less current portion
Total
130
568,925
1,237,695
12,687
1,555,382
72,966
¥1,482,416
213,130
500,957
16,476
842,433
107,878
¥734,555
5,138,876
11,179,613
114,596
14,049,155
659,073
$13,390,082
The details of the convertible bonds with stock acquisition rights are as follows:
Class of shares to be issued
Total issue price of stock acquisition rights
Initial conversion price
Total issue price
Total issue price of shares issued upon the exercise of stock acquisition rights
Percentage of stock acquisition rights granted
Exercise period
Zero coupon convertible bonds due 2022
Common stock
Zero
¥5,180 ($46.78) per share
¥70,000 million ($632,282 thousand)
–
100.0%
October 3, 2017 through September 2, 2022
If all of these outstanding warrants had been exercised at March 31, 2021, 13,757,050 shares of common stock would have been issued.
Class of shares to be issued
Total issue price of stock acquisition rights
Initial conversion price
Total issue price
Total issue price of shares issued upon the exercise of stock acquisition rights
Percentage of stock acquisition rights granted
Exercise period
Zero coupon convertible bonds due 2024
Common stock
Zero
¥5,100 ($46.06) per share
¥70,000 million ($632,282 thousand)
–
100.0%
October 3, 2017 through September 5, 2024
If all of these outstanding warrants had been exercised at March 31, 2021, 13,972,892 shares of common stock would have been issued.
The conversion price of the convertible bonds is subject to adjustments to reflect stock splits and certain other events.
As is customary in Japan, short-term and long-term bank loans are made under general agreements which provide that security and guarantees
for future and present indebtedness will be given upon request of the bank, and that the bank shall have the right, as the obligation becomes due
or in the event of default and certain other specified events, to offset cash deposits against such obligations due to the bank.
The following assets were pledged as collateral for short-term and long-term debt at March 31, 2021 and 2020:
Assets at net book value:
Aircraft (including aircraft spare parts included in inventories)
Land and buildings
Lease receivables and investments in leases
Others
Total
The aggregate annual maturities of long-term debt after March 31, 2021 are as follows:
Years ending March 31
2022
2023
2024
2025
2026
Thereafter
Total
9. Retirement benefit plans
Yen (Millions)
2021
2020
¥832,114
2,588
11,012
11,875
¥857,591
¥510,607
2,956
12,751
11,135
¥537,449
Yen (Millions)
¥ 72,966
137,639
118,036
146,147
96,525
984,069
¥1,555,382
U.S. dollars
(Thousands)
2021
$7,516,159
23,376
99,467
107,262
$7,746,283
U.S. dollars
(Thousands)
$ 659,073
1,243,239
1,066,172
1,320,088
871,872
8,888,709
$14,049,155
The Company and certain consolidated subsidiaries provide defined contribution pension plans as well as defined benefit pension plans, i.e.,
defined benefit corporate pension plans and lump-sum payment plans for the benefit of employees. Premium severance pay may be paid at the
time of retirement of eligible employees in certain cases.
Certain consolidated subsidiaries adopting defined benefit corporate pension plans and lump-sum payment plans use a simplified method for
calculating retirement benefit expenses and liabilities.
131
Financial / Data Section Notes to Consolidated Financial Statements
(a) The changes in the defined benefit obligation for the years ended March 31, 2021 and 2020 are as follows:
(f) Amounts recognized in accumulated other comprehensive income (before income tax effect) related to the defined retirement benefit plans at
Balance at the beginning of the fiscal year
Service cost
Interest cost
Actuarial gains
Benefits paid
Other
Balance at the end of the fiscal year
(b) The changes in plan assets for the years ended March 31, 2021 and 2020 are as follows:
Balance at the beginning of the fiscal year
Expected return on plan assets
Actuarial gains (losses)
Employer contributions
Benefits paid
Other
Balance at the end of the fiscal year
Yen (Millions)
2021
¥225,286
10,628
1,702
4,467
(18,474)
571
¥224,180
2020
¥223,723
10,216
1,687
2,119
(12,958)
499
¥225,286
Yen (Millions)
2021
¥62,717
831
3,171
2,619
(5,272)
(2)
¥64,064
2020
¥65,990
782
(1,510)
2,611
(5,156)
–
¥62,717
U.S. dollars
(Thousands)
2021
$2,034,920
95,998
15,373
40,348
(166,868)
5,157
$2,024,929
U.S. dollars
(Thousands)
2021
$566,498
7,506
28,642
23,656
(47,619)
(18)
$578,664
(c) A reconciliation between the liability recorded in the consolidated balance sheet and the balances of the defined benefit obligation and plan
assets at March 31, 2021 and 2020 is as follows:
Funded defined benefit obligation
Plan assets at fair value
Unfunded defined benefit obligation
Net liability arising from defined benefit obligation in the consolidated balance sheet
Liability for retirement benefits
Asset for defined benefits
Net liability arising from defined benefit obligation in the consolidated balance sheet
Yen (Millions)
2021
¥ 71,964
(64,064)
7,900
152,216
¥160,116
¥160,885
(769)
¥160,116
2020
¥ 74,336
(62,717)
11,619
150,950
¥162,569
¥163,384
(815)
¥162,569
(d) The components of net periodic benefit costs for the years ended March 31, 2021 and 2020 are as follows:
Service cost
Interest cost
Expected return on plan assets
Recognized actuarial losses
Amortization of past service cost
Net periodic benefit costs
Yen (Millions)
2021
¥10,628
1,702
(831)
2,947
851
¥15,297
2020
¥10,216
1,687
(782)
3,569
847
¥15,537
U.S. dollars
(Thousands)
2021
$ 650,022
(578,664)
71,357
1,374,907
$1,446,265
$1,453,211
(6,946)
$1,446,265
U.S. dollars
(Thousands)
2021
$ 95,998
15,373
(7,506)
26,619
7,686
$138,171
Note: Additional severance for the voluntary retirement scheme is recorded as a part of special loss (business restructuring expense) besides the above table.
(e) Amounts recognized in other comprehensive income (before income tax effect) related to the defined retirement benefit plans for the years
ended March 31, 2021 and 2020 are as follows:
Past service cost
Actuarial gains (losses)
Total
Yen (Millions)
2021
¥ 851
1,651
¥2,502
2020
¥847
(60)
¥787
U.S. dollars
(Thousands)
2021
$ 7,686
14,912
$22,599
March 31, 2021 and 2020 are as follows:
Unrecognized actuarial losses
Unrecognized past service cost
Total
(g) Plan assets
(1) Components of plan assets
Plan assets at March 31, 2021 and 2020 consisted of the following:
Bonds
General accounts
Stocks
Cash and deposits
Other
Total
Yen (Millions)
2021
¥(15,730)
(7,427)
¥(23,157)
2020
¥(17,378)
(8,281)
¥(25,659)
U.S. dollars
(Thousands)
2021
$(142,082)
(67,085)
$(209,168)
2021
2020
45%
13
11
4
27
100%
43%
13
10
4
30
100%
(2) Method of determining the expected rate of return on plan assets
The expected rate of return on plan assets has been estimated based on the anticipated allocation to each plan asset class and the
expected long-term returns on plan assets held in each category.
(h) Assumptions used for the years ended March 31, 2021 and 2020 are set forth as follows:
Discount rates
Expected rates of return on plan assets
(i) Defined contribution pension plans
2021
0.1 – 1.2%
1.0 – 2.5%
2020
0.1 – 1.2%
1.0 – 2.5%
The contributions to the defined contribution pension plans of the Company and certain consolidated subsidiaries were ¥4,467 million ($40,348
thousand) and ¥4,381 million for the years ended March 31, 2021 and 2020, respectively.
10. Asset retirement obligations
(a) Asset retirement obligations recorded on the consolidated balance sheet
(1) Overview of asset retirement obligations
The Company and its domestic subsidiaries enter into agreements with national government entities that allow for the use of Japanese
government property and have entered into real estate lease contracts with such entities for the Head Office, sales branches, airport branches,
and certain other offices. As the Company and its domestic subsidiaries have restoration obligations for such properties at the end of each lease
period, related legal obligations required by law and the contracts are recorded on the consolidated balance sheet as asset retirement obligations.
(2) Calculation of asset retirement obligations
The Group estimates the expected period of use as 1 to 30 years and calculates the amount of asset retirement obligations with a discount rate
of 0% to 2.27%.
The following table indicates the changes in asset retirement obligations for the years ended March 31, 2021 and 2020:
Balance at the beginning of the fiscal year
Liabilities incurred due to the acquisition of property and equipment
Accretion expense
Liabilities settled
Other
Balance at the end of the fiscal year
Yen (Millions)
2021
¥1,255
42
14
(104)
1,556
¥2,763
2020
¥ 3,853
57
19
(513)
(2,161)
¥ 1,255
U.S. dollars
(Thousands)
2021
$11,335
379
126
(939)
14,054
$24,957
132
133
Financial / Data Section
Notes to Consolidated Financial Statements
(b) Asset retirement obligations not recorded on the consolidated balance sheet
The Company and its domestic subsidiaries enter into agreements with national government entities that allow for the use of Japanese govern-
ment property, and have entered into real estate lease contracts with such entities for land and offices at airport facilities, including Tokyo
International Airport, Narita International Airport, New Chitose Airport, Chubu Centrair International Airport, Osaka International Airport, Kansai
International Airport, Fukuoka Airport, and Naha Airport, etc. The Company and its domestic subsidiaries have restoration obligations when
they vacate and clear such facilities. However, as the above airports are considered to be critical infrastructure, it is beyond the control of the
Company alone to determine when to vacate and clear such facilities, and it is also impossible to make reasonable estimates as there are
currently no relocation plans for the above properties. Therefore, the Company and its domestic subsidiaries do not record asset retirement
obligations for the related liabilities.
11. Income taxes
The Company and certain of its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate, resulted
in a normal effective statutory tax rate of 30.62% for the years ended March 31, 2021 and 2020.
The Group files a tax return under the consolidated corporate-tax system, which allows companies to base tax payments on the combined
profits or losses of the parent company and certain of its domestic subsidiaries.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at March 31,
2021 and 2020 are as follows:
Deferred tax assets:
Tax loss carryforwards (*2, *3)
Liability for retirement benefits
Impairment loss (*3)
Prepaid expenses
Deferred loss on hedging instruments
Accrued bonuses to employees
Other provisions
Loss on investment in subsidiaries
Long-term unearned revenue
Loss on valuation of inventories
Unrealized gain on inventories and property and equipment
Other
Total gross deferred tax assets
Valuation allowance for tax loss carryforwards (*2, *3)
Valuation allowance for the sum of deductible temporary differences, etc. (*3)
Subtotal of valuation allowances (*1)
Total net deferred tax assets
Deferred tax liabilities:
Unrealized gain on securities
Deferred gain on hedging instruments
Retained earnings of subsidiaries and affiliates
Other
Total gross deferred tax liabilities
Net deferred income taxes
Yen (Millions)
2021
2020
¥145,675
49,763
19,824
10,242
–
1,311
8,429
5,879
4,419
5,630
4,364
27,743
283,279
(17,312)
(16,997)
(34,309)
248,970
(16,717)
(9,299)
(1,809)
(1,749)
(29,574)
¥ 4,114
50,286
564
9,901
8,723
6,608
6,537
6,091
5,270
4,763
4,673
24,149
131,679
(2,883)
(11,385)
(14,268)
117,411
(10,981)
(2,681)
(2,388)
(1,649)
(17,699)
U.S. dollars
(Thousands)
2021
$1,315,825
449,489
179,062
92,511
–
11,841
76,135
53,102
39,915
50,853
39,418
250,591
2,558,748
(156,372)
(153,527)
(309,899)
2,248,848
(150,998)
(83,994)
(16,339)
(15,798)
(267,130)
¥219,396
¥ 99,712
$1,981,718
(*1) Valuation allowances increased by ¥20,041 million ($181,022 thousand). The main reason for the increase in valuation allowances is an increase ¥14,429 million ($130,331
thousand) in the valuation allowance for tax loss carryforwards.
(*2) Tax loss carryforwards and associated deferred tax assets by deadline of carryforward:
Current fiscal year (As of March 31, 2021)
Tax loss carryforwards (*a)
Valuation allowance
Deferred tax assets (*b)
Tax loss carryforwards (*a)
Valuation allowance
Deferred tax assets (*b)
Due within
one year
Due after one
year but within
two years
Due after two
years but within
three years
Yen (Millions)
Due after three
years but within
four years
Due after four
years but within
five years
¥ 201
(201)
¥ –
Due within
one year
Due after one
year but within
two years
Due after two
years but within
three years
U.S. dollars (Thousands)
Due after three
years but within
four years
Due after four
years but within
five years
$ 1,815
Due after
five years
¥145,474
Total
¥145,675
(17,111)
(17,312)
¥128,363
¥128,363
Due after
five years
$1,314,009
Total
$1,315,825
(1,815)
(154,556)
(156,372)
$
–
$1,159,452
$1,159,452
(*b) The Group recorded deferred tax assets of ¥128,363 million ($1,159,452 thousand) related to tax loss carryforwards for the current consolidated fiscal year due to a
significant decrease in demand for airline passengers associated with the spread of COVID-19.
The Company and certain of its domestic subsidiaries apply the consolidated corporate-tax system, and the corporations subject to the consolidated corporate-tax system
make judgments on the recoverability based on the future taxable income, etc. of the tax consolidated group with regard to corporate taxes (national taxes), and make
judgments on the recoverability of deferred tax assets based on the future taxable income, etc. of each corporation with regard to local taxes. With respect to tax loss
carryforwards, based on the estimated future taxable income, we schedule the expected year and amount to be deducted from tax loss carryforwards, and record the
amount expected to be recovered as deferred tax assets.
The future taxable income of ANA Holdings Inc. and All Nippon Airways Co., Ltd., which constitutes a significant portion of the future taxable income that provides a basis
for scheduling the amount expected to be deducted, is estimated based on a future plan that assumes that the demand for domestic passengers and international passen-
gers will recover to the pre-pandemic level of 2019 by the end of the fiscal years ending March 31, 2022 and March 31, 2024, respectively.
(*3) Changes in presentation
“Tax loss carryforward” and “Impairment loss” which were included in “Other” in the past year have been presented as separate accounts in the current fiscal year due to their
increased financial materiality.
Also, “Valuation allowance for tax loss carryforwards” and “Valuation allowance for the sum of deductible temporary differences, etc.” have been presented as a separate
accounts in the current fiscal year as the amounts are now material to warrant separate presentation.
A reconciliation of the difference between the normal effective statutory tax rate and the actual effective income tax rate for the years ended
March 31, 2021 and 2020 is as follows:
Normal effective statutory tax rate
Reconciliation:
Impairment loss
Amortization of goodwill
Expenses not deductible for income tax purposes
Inhabitants tax per capita levy
Income taxes for prior periods
Changes in valuation allowance
Other, net
Actual effective income tax rate
12. Other comprehensive income
2021
30.62%
–
(0.12)
(0.02)
(0.04)
0.02
(3.87)
(1.34)
25.25%
2020
30.62%
13.49
2.38
1.30
0.39
(0.81)
3.54
(1.24)
49.67%
The following table presents reclassification and tax effects allocated to each component of other comprehensive income for the years ended
March 31, 2021 and 2020:
Unrealized gain (loss) on securities:
Amount arising during the fiscal year
Reclassification adjustments to profit or loss
Amount of unrealized gain (loss) on securities before tax effect
Tax effect
Total
Deferred gain (loss) on derivatives under hedge accounting:
Amount arising during the fiscal year
Reclassification adjustments to profit or loss
Amount of deferred gain (loss) on derivatives under hedge accounting before tax effect
Tax effect
Total
Foreign currency translation adjustments:
Amount arising during the fiscal year
Total
Defined retirement benefit plans:
Amount arising during the fiscal year
Reclassification adjustments to profit or loss
Amount of defined retirement benefit plans before tax effect
Tax effect
Total
Share of other comprehensive income (loss) in affiliates:
Amount arising during the fiscal year
Reclassification adjustments to profit or loss
Total
Yen (Millions)
2021
2020
¥ 13,936
8,058
21,994
(5,741)
16,253
57,286
(4,925)
52,361
(16,119)
36,242
31
31
(1,296)
3,798
2,502
(896)
1,606
227
96
323
¥(19,764)
(764)
(20,528)
5,159
(15,369)
(41,013)
4,424
(36,589)
11,362
(25,227)
(221)
(221)
(3,629)
4,416
787
(248)
539
(381)
(2)
(383)
U.S. dollars
(Thousands)
2021
$ 125,878
72,784
198,663
(51,856)
146,806
517,441
(44,485)
472,956
(145,596)
327,359
280
280
(11,706)
34,305
22,599
(8,093)
14,506
2,050
867
2,917
Total other comprehensive income (loss)
¥ 54,455
¥(40,661)
$ 491,870
(*a) Tax loss carryforwards reflect the amounts resulting from multiplying the statutory tax rate.
134
135
Financial / Data Section
Notes to Consolidated Financial Statements
13. Leases
As lessee
(a) Finance leases
Finance lease transactions are capitalized by recognizing lease assets and lease obligations in the consolidated balance sheet.
Tangible fixed lease assets include mainly aircraft, flight equipment, host computers, and peripheral equipment. Intangible lease assets include
software. The depreciation method for leased assets is described in Note 3 (j) “Leases.”
(b) Operating leases
The amount of outstanding future lease payments under non-cancelable operating leases are as follows:
Current portion of operating lease obligations
Long-term operating lease obligations
Total
As lessor
(a) Operating leases
Yen (Millions)
2021
¥ 65,907
295,600
¥361,507
2020
¥ 62,649
318,817
¥381,466
U.S. dollars
(Thousands)
2021
$ 595,312
2,670,038
$3,265,350
The amount of outstanding future lease receivables under non-cancelable operating leases are as follows:
Current portion of operating lease receivables
Long-term operating lease receivables
Total
Yen (Millions)
2021
¥ 2,169
13,269
¥15,438
2020
¥ 2,170
15,373
¥17,543
U.S. dollars
(Thousands)
2021
$ 19,591
119,853
$139,445
14. Supplementary information for the consolidated statement of changes in equity
Supplementary information for the consolidated statement of changes in equity for the year ended March 31, 2021 consisted of the following:
(a) Dividends
Under the Companies Act of Japan (the “Companies Act”), the appropriation of unappropriated retained earnings of the Company with respect to
a financial period is made by resolution of the Company’s shareholders at a general meeting to be held subsequent to the close of the financial
period and the accounts for that period do not therefore reflect such appropriation.
(1) Dividends paid to shareholders
There are no applicable items.
(2) Dividends with a shareholders’ cut-off date within the current fiscal year but an effective date within the subsequent fiscal year
There are no applicable items.
The Companies Act requires that an amount equal to 10% of dividends must be appropriated as a legal reserve (a component of retained
earnings) or as additional paid-in capital (a component of capital surplus), depending on the equity account charged upon the payment of such
dividends, until the aggregate amount of legal reserve and additional paid-in capital equals 25% of the common stock. Under the Companies Act,
the total amount of additional paid-in capital and legal reserve may be reversed without limitation. The Companies Act also provides that common
stock, legal reserve, additional paid-in capital, other capital surplus, and retained earnings can be transferred among the accounts within equity
under certain conditions upon resolution of the shareholders.
(b) Type and number of outstanding shares
As of March 31, 2021
Type of shares
Issued stock:
Common stock (*1)
Total
Treasury stock:
Common stock (*2, *3, *4)
Total
Number of shares (Thousands)
Balance at
beginning of year
Increase in shares
during the year
Decrease in shares
during the year
Balance at
end of year
348,498
348,498
13,978
13,978
135,795
135,795
5
5
–
–
32
32
484,293
484,293
13,950
13,950
(*1) The increase of 135,795 thousand shares of common stock is the total of 126,310 thousand shares issued through a public offering with the subscription payment date on
December 14, 2020, and 9,485 thousand shares issued through a third-party allotment with the subscription payment date on January 13, 2021, as the allotment to be taken
in relation to the offering due to over-allotment.
(*2) The increase of 5 thousand shares of treasury stock is that the Company purchased from holders of fractional shares.
(*3) The decrease of 32 thousand shares of treasury stock is the total of 1 thousand shares that the Company sold to the holders of fractional shares at their request, and
31 thousand shares in the Company that were sold by the Trust for Delivery of Shares to Directors.
(*4) Treasury stock includes 178 thousand shares held by the Trust for Delivery of Shares to Directors.
As of March 31, 2020
Type of shares
Issued stock:
Common stock
Total
Treasury stock:
Common stock (*1, *2, *3)
Total
Number of shares (Thousands)
Balance at
beginning of year
Increase in shares
during the year
Decrease in shares
during the year
Balance at
end of year
348,498
348,498
13,868
13,868
–
–
125
125
–
–
15
15
348,498
348,498
13,978
13,978
(*1) The increase of 125 thousand shares of treasury stock is the total of 8 thousand shares that the Company purchased from holders of fractional shares, and 116 thousand
shares in the Company that were purchased by the Trust for Delivery of Shares to Directors.
(*2) The decrease of 15 thousand shares of treasury stock is the total of 0 thousand shares that the Company sold to the holders of fractional shares at their request, and
14 thousand shares in the Company that were sold by the Trust for Delivery of Shares to Directors.
(*3) Treasury stock includes 209 thousand shares held by the Trust for Delivery of Shares to Directors.
15. Contingencies
The Group was contingently liable as a guarantor of loans, principally to affiliates, totaling ¥982 million ($8,870 thousand) at March 31, 2021.
The Group was contingently liable as a guarantor for a stock transfer agreement between third parties, totaling ¥6,111 million ($55,198 thousand)
at March 31, 2021.
The Group was contingently liable as a guarantor of loans, principally to affiliates, totaling ¥2,080 million at March 31, 2020.
The Group was contingently liable as a guarantor for a stock transfer agreement between third parties, totaling ¥6,111 million at March 31, 2020.
16. Financial instruments and related disclosures
Overview
(a) Group policy for financial instruments
The Group limits its fund management to short-term time deposits and raises funds through borrowings from financial institutions, including
banks. The Group uses derivatives for the purpose of reducing the risks described below and does not enter into derivatives for speculative
or trading purposes.
(b) Types of financial instruments and related risk
Trade receivables (notes and accounts receivable) are exposed to credit risk in relation to customers.
Marketable securities and investment securities are exposed to the risk of market price fluctuations. Those securities are composed mainly of
the shares of other companies with which the Group has business relationships.
Substantially all trade payables have payment due dates within one year.
Borrowings are taken out principally for the purpose of making capital investments, and certain long-term debt with variable interest rates is
exposed to interest rate fluctuation risk. However, to reduce such risk for long-term interest-bearing debt at variable rates, the Group utilizes
interest rate swap transactions as hedging instruments. Interest rate swaps that qualify for hedge accounting and meet specific matching criteria
are not measured at fair value, but the differential paid or received under the swap agreements is recognized and included in interest expenses.
For derivatives, in order to reduce the foreign currency exchange rate risk arising from receivables and payables denominated in foreign curren-
cies, the Group enters into forward foreign exchange contracts for specific receivables and payables denominated in foreign currencies, mainly
for aircraft purchase commitments. In addition, the Group enters into commodity derivative transactions such as swaps and options to mitigate
fluctuation risk of the commodity prices of fuel and to stabilize operating profit.
136
137
Financial / Data Section
Notes to Consolidated Financial Statements
1) Management of credit risks (risks such as breach of contract by customers)
The Group manages its credit risk from receivables on the basis of internal guidelines, which include monitoring of payment term and balances
of major customers by each business administration department to identify the default risk of customers at an early stage.
As for derivatives, the Group believes that the credit risks are extremely low, as it enters into derivative transactions only with reputable financial
institutions with sound credit profiles.
2) Management of market risks (fluctuation risks of foreign currency exchange rates and interest rates)
In order to reduce foreign currency exchange rate risks, the Group principally utilizes forward foreign exchange contracts for receivables and
payables denominated in foreign currencies. In order to mitigate the interest rate fluctuation risks related to debt, the Group utilizes interest rate
swap transactions. In addition, the Group enters into commodity derivative transactions such as swaps and options to mitigate fluctuation risk
related to commodity prices for fuel.
As for marketable securities and investment securities, the Group periodically reviews the fair values and the financial conditions of the issuers
to identify and mitigate risks of impairment.
There are internal management regulations for derivative transactions which set forth transaction authority and limits on transaction amounts.
The Group enters into derivative transactions in accordance with such policies. Moreover, the Group reports plans and results of methods and
ratios for offsetting risks at the quarterly meetings of the Board of Directors.
3) Management of liquidity risks related to financing (risks that the Group cannot meet the due dates of payables)
The Group manages liquidity risks by establishing a financial plan in order to procure and invest funds that are necessary for the operation of the
Group over a certain period of time, in accordance with the Group’s business operating plan and budget.
As of March 31, 2021
Assets:
Cash and deposits
Notes and accounts receivable
Marketable securities and investment securities
Total assets
Liabilities:
Accounts payable
Short-term loans
Bonds
Convertible bonds with stock acquisition rights
Long-term loans
Total liabilities
Derivatives*
Carrying value
U.S. dollars (Thousands)
Fair value
Differences
$ 4,197,805
971,664
5,505,302
$ 4,197,805
971,664
5,532,950
$
–
–
(27,648)
$10,674,771
$10,702,420
$
(27,648)
$ 1,646,111
903,893
1,490,380
1,264,565
11,179,613
$16,484,563
$ 281,609
$ 1,646,111
903,893
1,389,513
1,224,098
17,080,588
$22,244,205
281,609
$
$
–
–
100,867
40,466
(5,900,975)
$(5,759,642)
–
$
* The value of assets and liabilities arising from derivatives is shown as a net value, and the amount in parentheses represents a net liability position.
Notes:
1. Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivative transactions
Assets
(a) Cash and deposits
The carrying values of cash and deposits approximate fair value because of their short maturities.
(b) Notes and accounts receivable
(c) Supplementary explanation of the estimated fair value of financial instruments
The carrying values of notes and accounts receivable approximate fair value because of their short maturities.
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available, fair value
is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors could
result in different fair value estimates. In addition, the notional amounts of derivatives presented in Note 17 “Derivatives and hedging activities” are
not necessarily indicative of the actual market risk involved in derivative transactions.
Estimated fair value of financial instruments
The carrying values of financial instruments on the consolidated balance sheet at March 31, 2021 and 2020, and their estimated fair values, are
shown in the following tables. The following tables do not include financial instruments for which fair value cannot be reliably determined (Please
refer to Note 2 below).
As of March 31, 2021
Assets:
Cash and deposits
Notes and accounts receivable
Marketable securities and investment securities
Total assets
Liabilities:
Accounts payable
Short-term loans
Bonds
Convertible bonds with stock acquisition rights
Long-term loans
Total liabilities
Derivatives*
As of March 31, 2020
Assets:
Cash and deposits
Notes and accounts receivable
Marketable securities and investment securities
Total assets
Liabilities:
Accounts payable
Short-term loans
Bonds
Convertible bonds with stock acquisition rights
Long-term loans
Total liabilities
Derivatives*
138
Carrying value
¥ 464,739
107,573
609,492
¥1,181,804
¥ 182,241
100,070
165,000
140,000
1,237,695
¥1,825,006
31,177
¥
Carrying value
¥ 109,447
98,944
214,279
¥ 422,670
¥ 196,391
429
185,000
140,000
500,957
¥1,022,777
(20,664)
¥
Yen (Millions)
Fair value
¥ 464,739
107,573
612,553
¥1,184,865
¥ 182,241
100,070
153,833
135,520
1,890,992
¥2,462,656
31,177
¥
Yen (Millions)
Fair value
¥ 109,447
98,944
216,849
¥ 425,240
¥ 196,391
429
183,874
135,415
501,213
¥1,017,322
(20,664)
¥
Differences
¥
–
–
3,061
¥
3,061
¥
–
–
11,167
4,480
(653,297)
¥(637,650)
–
¥
Differences
¥
–
–
2,570
¥2,570
¥
–
–
1,126
4,585
(256)
¥5,455
–
¥
(c) Marketable securities and investment securities
The fair values of marketable and investment securities are measured at the quoted market price of the stock exchange for the equity instru-
ments, and at the quoted price obtained from financial institutions for certain debt instruments. The information on the fair values of marketable
and investment securities by classification is included in Note 5 “Marketable securities and investment securities” of the notes to the consolidated
financial statements.
Liabilities
(a) Accounts payable
The carrying values of accounts payable approximate fair value because of their short maturities.
(b) Short-term loans
The carrying values of short-term loans approximate fair value because of their short maturities.
(c) Bonds
The fair value of bonds issued by the Company is measured at the present value of the total of principal and interest discounted by an interest
rate determined by taking into account the remaining period of each bond and current credit risk.
(d) Long-term loans
The fair values of long-term loans are determined by discounting the cash flows related to the debt at the Group’s assumed corporate
borrowing rate.
2. Financial instruments for which it is extremely difficult to determine the fair value
As of March 31, 2021
Unlisted stocks
Yen (Millions)
2021
¥21,418
2020
¥23,076
U.S. dollars
(Thousands)
2021
$193,463
Because no quoted market price is available and the fair value cannot be reliably determined, the above financial instruments are not included in
the fair value tables above.
3. The redemption schedule for receivables and available-for-sale and held-to-maturity securities with maturities at March 31, 2021 and 2020 is
summarized as follows:
As of March 31, 2021
Deposits
Notes and accounts receivable
Held-to-maturity bonds
Other securities with maturities
Total
Due in
one year or less
¥ 464,010
107,573
–
500,980
¥1,072,563
Yen (Millions)
Due after one year
through five years
Due after five years
through ten years
Due after
ten years
¥ –
–
–
2,837
¥2,837
¥ –
–
–
2,222
¥2,222
¥ –
–
1,855
–
¥1,855
139
Financial / Data Section
Notes to Consolidated Financial Statements
As of March 31, 2020
Deposits
Notes and accounts receivable
Held-to-maturity bonds
Other securities with maturities
Total
As of March 31, 2021
Deposits
Notes and accounts receivable
Held-to-maturity bonds
Other securities with maturities
Total
Due in
one year or less
¥108,572
98,944
–
129,200
¥336,716
Due in
one year or less
$4,191,220
971,664
–
4,525,155
$9,688,040
Yen (Millions)
Due after one year
through five years
Due after five years
through ten years
Due after
ten years
¥ –
–
–
5,299
¥5,299
¥ –
–
–
2,025
¥2,025
¥–
–
–
–
¥–
U.S. dollars (Thousands)
Due after one year
through five years
Due after five years
through ten years
$
–
–
–
25,625
$25,625
$
–
–
–
20,070
$20,070
Due after
ten years
$
–
–
16,755
–
$16,755
4. The redemption schedule for bonds, loans, and other interest-bearing liabilities at March 31, 2021 and 2020 is summarized as follows:
As of March 31, 2021
Short-term loans
Bonds
Convertible bonds with stock acquisition rights
Long-term loans
Total
As of March 31, 2020
Short-term loans
Bonds
Convertible bonds with stock acquisition rights
Long-term loans
Total
As of March 31, 2021
Short-term loans
Bonds
Convertible bonds with stock acquisition rights
Long-term loans
Total
17. Derivatives and hedging activities
Due in
one year or less
¥100,070
–
–
69,443
¥169,513
Yen (Millions)
Due after one year
through five years
Due after five years
through ten years
¥
–
60,000
140,000
290,219
¥490,219
¥
–
40,000
–
272,127
¥312,127
Due in
one year or less
Due after one year
through five years
Due after five years
through ten years
Yen (Millions)
¥
429
20,000
–
84,057
¥104,486
¥
–
30,000
140,000
228,056
¥398,056
¥
–
70,000
–
138,900
¥208,900
¥
Due after
ten years
–
65,000
–
605,906
¥670,906
¥
Due after
ten years
–
65,000
–
49,944
¥114,944
U.S. dollars (Thousands)
Due in
one year or less
$ 903,893
–
–
Due after one year
through five years
$
–
541,956
1,264,565
Due after five years
through ten years
$
–
361,304
–
$
Due after
ten years
–
587,119
–
627,251
2,621,434
2,458,016
5,472,911
$1,531,144
$4,427,955
$2,819,320
$6,060,030
The Group operates internationally and is exposed to the risk of fluctuations in foreign currency exchange rates, interest rates, and jet fuel prices.
In order to manage these risks, the Group utilizes forward exchange contracts to hedge certain foreign currency transactions related to purchase
commitments, principally of flight equipment, and foreign currency receivables and payables. Also, the Group utilizes interest rate swaps to
minimize the impact of interest rate fluctuations related to outstanding debt. In addition, the Group also enters into a variety of swaps and options
in its management of risk exposure related to jet fuel prices. The Group does not use derivatives for speculative or trading purposes.
The Group has developed internal hedging guidelines to control various aspects of derivative transactions, including authorization levels and
transaction volumes. The Group enters into derivative transactions in accordance with these internal guidelines. Derivative and hedging transac-
tions initiated by respective operational departments have been examined by the accounting department and these transactions, including their
measures and ratios, are generally monitored by management on a quarterly basis. Assessment of hedge effectiveness is examined at inception
and, on an ongoing basis, periodically.
The Group is also exposed to credit-related losses in the event of non-performance by counterparties in regard to derivative financial
instruments; however, it is not expected that any counterparties will fail to meet their obligations, as the majority of the counterparties are
internationally recognized financial institutions.
Summarized below are the notional amounts and estimated fair values of the derivative financial instruments outstanding at March 31, 2021 and
2020 for which hedged accounting has been applied.
(a) Derivative transactions to which hedge accounting is not applied
(1) Currency-related transactions
As of March 31, 2021
Forward foreign exchange contracts:
Sell:
Buy:
Total
As of March 31, 2020
Forward foreign exchange contracts:
Sell:
Buy:
Total
As of March 31, 2021
Forward foreign exchange contracts:
Sell:
Buy:
Total
(2) Commodity-related transactions
USD
EUR
Other
USD
EUR
Other
USD
EUR
Other
USD
EUR
Other
USD
EUR
Other
USD
EUR
Other
As of March 31, 2021
C ommodity (crude oil) swap contracts for accounts
payable, accounted for by the deferral method:
Receive/floating and pay/fixed
C ommodity (crude oil) option contracts, accounted for
by the deferral method:
Sell:
Buy:
Total
Crude oil (Put)
Crude oil (Call)
Yen (Millions)
Notional amount
Total
Maturing after one year
Fair value
¥–
–
–
–
–
–
¥–
¥–
–
–
–
–
–
¥–
¥–
–
–
–
–
–
¥–
Yen (Millions)
Notional amount
Total
Maturing after one year
Fair value
¥ –
–
–
102
–
–
¥102
¥ –
–
–
102
–
–
¥102
¥–
–
–
0
–
–
¥0
U.S. dollars (Thousands)
Notional amount
Total
Maturing after one year
Fair value
$–
–
–
–
–
–
$–
$–
–
–
–
–
–
$–
$–
–
–
–
–
–
$–
Yen (Millions)
Notional amount
Total
Maturing after one year
Fair value
¥–
–
–
–
¥–
¥–
–
–
–
¥–
¥–
–
–
–
¥–
Yen (Millions)
Notional amount
Total
Maturing after one year
Fair value
As of March 31, 2020
C ommodity (crude oil) swap contracts for accounts
payable, accounted for by the deferral method:
Receive/floating and pay/fixed
C ommodity (crude oil) option contracts, accounted for
by the deferral method:
Sell:
Buy:
Total
Crude oil (Put)
Crude oil (Call)
¥1,002
430
555
¥1,988
¥–
–
–
¥–
¥(423)
(98)
(53)
¥(576)
140
141
Financial / Data Section Notes to Consolidated Financial Statements
As of March 31, 2021
C ommodity (crude oil) swap contracts for accounts
payable, accounted for by the deferral method:
Receive/floating and pay/fixed
C ommodity (crude oil) option contracts, accounted for
by the deferral method:
Sell:
Buy:
Total
Crude oil (Put)
Crude oil (Call)
(b) Derivative transactions to which hedge accounting is applied
(1) Currency-related transactions
As of March 31, 2021
F orward foreign exchange contracts for accounts
receivable, accounted for by the deferral method:
Sell:
F orward foreign exchange contracts for accounts
payable, accounted for by the deferral method:
Buy:
USD
EUR
Other
USD
EUR
Other
C urrency option contracts for accounts payable,
accounted for by the deferral method:
Sell:
Buy:
F orward foreign exchange contracts, accounted for as
USD (Put)
USD (Call)
part of accounts receivable:
Sell:
F orward foreign exchange contracts, accounted for as
part of accounts payable:
Buy:
C urrency swap contracts for accounts payable,
accounted for as part of accounts payable:
Receive/USD and pay/JPY
Total
USD
EUR
Other
USD
EUR
Other
U.S. dollars (Thousands)
Notional amount
Total
Maturing after one year
Fair value
$–
–
–
$–
$–
–
–
$–
$–
–
–
$–
Yen (Millions)
Notional amount
Total
Maturing after one year
Fair value
¥
56
30
–
364,685
103
0
48,186
53,145
82
10
–
7,279
2,772
0
¥
–
–
–
195,023
–
–
31,039
34,181
–
–
–
–
–
–
¥
(1)
0
–
22,562
8
0
(421)
2,667
(*)
(*)
(*)
(*)
(*)
(*)
–
¥476,352
–
¥260,244
(*)
¥24,815
As of March 31, 2020
F orward foreign exchange contracts for accounts
receivable, accounted for by the deferral method:
Sell:
F orward foreign exchange contracts for accounts
payable, accounted for by the deferral method:
Buy:
C urrency option contracts for accounts payable,
accounted for by the deferral method:
Sell:
Buy:
F orward foreign exchange contracts,
accounted for as part of accounts receivable:
Sell:
F orward foreign exchange contracts,
accounted for as part of accounts payable:
Buy:
C urrency swap contracts for accounts payable,
accounted for as part of accounts payable:
Receive/USD and pay/JPY
Total
As of March 31, 2021
F orward foreign exchange contracts for accounts
receivable, accounted for by the deferral method:
Sell:
F orward foreign exchange contracts for accounts
payable, accounted for by the deferral method:
Buy:
USD
EUR
Other
USD
EUR
Other
USD (Put)
USD (Call)
USD
EUR
Other
USD
EUR
Other
USD
EUR
Other
USD
EUR
Other
C urrency option contracts for accounts payable,
accounted for by the deferral method:
Sell:
Buy:
F orward foreign exchange contracts, accounted for as
USD (Put)
USD (Call)
part of accounts receivable:
Sell:
F orward foreign exchange contracts, accounted for as
part of accounts payable:
Buy:
C urrency swap contracts for accounts payable,
accounted for as part of accounts payable:
Receive/USD and pay/JPY
Total
USD
EUR
Other
USD
EUR
Other
Yen (Millions)
Notional amount
Total
Maturing after one year
Fair value
¥ 418
–
–
359,747
500
16
46,402
51,225
217
–
6
9,469
110
1
¥
–
–
–
143,267
–
–
30,696
33,896
–
–
–
–
–
–
¥
(1)
–
–
11,983
(4)
(1)
(978)
2,163
(*)
(*)
(*)
(*)
(*)
(*)
–
¥468,115
–
¥207,861
(*)
¥13,162
U.S. dollars (Thousands)
Notional amount
Total
Maturing after one year
Fair value
$
505
270
–
3,294,056
930
0
435,245
480,037
740
90
–
65,748
25,038
2
$
–
–
–
1,761,566
–
–
280,363
308,743
–
–
–
–
–
–
$
(9)
(1)
–
203,793
72
0
(3,802)
24,089
(*)
(*)
(*)
(*)
(*)
(*)
–
$4,302,700
–
$2,350,681
(*)
$224,144
Note: Calculation of fair value is based on the data obtained from financial institutions.
(*) The estimated fair value of forward foreign exchange contracts is included in the estimated fair value of accounts payable, as the amounts in such derivative contracts
accounted for as part of accounts receivable and payable are aggregated with the receivables and payables denominated in foreign currencies that are subject to hedge
accounting. See Note 16 “Financial instruments and related disclosures” for additional information.
142
143
Financial / Data Section Notes to Consolidated Financial Statements
(2) Interest-related transactions
As of March 31, 2021
Interest rate swap hedging long-term loans:
Receive/floating and pay/fixed
As of March 31, 2020
Interest rate swap hedging long-term loans:
Receive/floating and pay/fixed
As of March 31, 2021
Interest rate swap hedging long-term loans:
Receive/floating and pay/fixed
Yen (Millions)
Notional amount
Total
Maturing after one year
Fair value
¥53,413
¥35,608
(*)
Yen (Millions)
Notional amount
Total
Maturing after one year
Fair value
¥82,333
¥53,413
(*)
U.S. dollars (Thousands)
Notional amount
Total
Maturing after one year
Fair value
$482,458
$321,633
(*)
(*) Interest rate swap contracts are used as hedges and meet specific matching criteria, the net amount to be paid or received under the interest rate swap contract is added to or
deducted from the interest on the long-term loans. The estimated fair value of interest rate swap contracts is included in the estimated fair value of long-term loans.
(3) Commodity-related transactions
As of March 31, 2021
Total
Maturing after one year
Fair value
Yen (Millions)
Notional amount
C ommodity (crude oil) swap contracts for accounts
payable, accounted for by the deferral method:
Receive/floating and pay/fixed
C ommodity (crude oil) option contracts, accounted for
by the deferral method:
¥ 50,519
¥23,618
¥5,063
Sell:
Buy:
Total
Crude oil (Put)
Crude oil (Call)
26,806
35,258
¥112,584
12,045
16,211
¥51,875
Yen (Millions)
(281)
1,579
¥6,362
As of March 31, 2020
C ommodity (crude oil) swap contracts for accounts
payable, accounted for by the deferral method:
Receive/floating and pay/fixed
C ommodity (crude oil) option contracts, accounted for
by the deferral method:
Notional amount
Total
Maturing after one year
Fair value
¥ 69,132
¥27,452
¥(24,304)
Sell:
Buy:
Total
Crude oil (Put)
Crude oil (Call)
33,120
42,798
¥145,051
15,468
20,103
¥63,025
(7,229)
(1,717)
¥(33,250)
As of March 31, 2021
Total
Maturing after one year
Fair value
U.S. dollars (Thousands)
Notional amount
C ommodity (crude oil) swap contracts for accounts
payable, accounted for by the deferral method:
Receive/floating and pay/fixed
C ommodity (crude oil) option contracts, accounted for
by the deferral method:
$ 456,318
$213,332
$45,732
Sell:
Buy:
Total
Crude oil (Put)
Crude oil (Call)
242,128
318,471
$1,016,927
108,797
146,427
$468,566
(2,538)
14,262
$57,465
Note: The calculation of fair value is based on the data obtained from financial institutions.
18. Segment information
(a) Description of reportable segments
The reportable segments of the Company and its consolidated subsidiaries are components for which discrete financial information is available
and whose operating results are regularly reviewed by the Executive Committee to make decisions about resource allocation and to assess
performance.
The Group’s reportable segments are categorized under “Air Transportation,” “Airline Related,” “Travel Services,” and “Trade and Retail.”
The “Air Transportation” segment conducts domestic and international passenger operations, cargo and mail operations, and other transporta-
tion services. The “Airline Related” segment conducts air transportation-related operations, such as airport passenger and ground handling
services and maintenance services. The “Travel Services” segment conducts operations centering on the development and sales of travel plans.
It also conducts planning and sales of branded travel packages using air transportation. The “Trade and Retail” segment conducts mainly import
and export operations of goods related to air transportation and is involved in in-store and non-store retailing.
(b) Methods of measurement for the amounts of sales, profit, assets, and other items for each reportable segment
The accounting policies of the reportable segments are substantially the same as those described in Note 3 “Summary of significant accounting
policies.”
Segment performance is evaluated based on operating income or loss. Intersegment sales and transfers are based on current market prices.
(c) Information about sales, profit, assets, and other items
Yen (Millions)
Reportable Segments
As of and for the year ended March 31, 2021
Operating revenues:
Operating revenues from external customers
Intersegment revenues or transfers
Total
Segment profit (loss)
Segment assets
Other items:
Depreciation and amortization
Amortization of goodwill
Increase in property and equipment and intangible assets
Air
Transportation
¥ 571,709
32,305
¥ 604,014
¥ (447,894)
2,935,753
168,952
2,001
151,196
Airline Related
Travel Services
Trade and Retail
Subtotal
¥ 36,162
185,977
¥222,139
¥ 3,691
141,530
5,073
–
1,564
¥39,453
5,597
¥45,050
¥ (5,084)
31,681
516
–
134
¥68,883
11,075
¥79,958
¥ (4,282)
52,548
1,367
114
1,202
¥ 716,207
234,954
¥ 951,161
¥ (453,569)
3,161,512
175,908
2,115
154,096
As of and for the year ended March 31, 2021
Operating revenues:
Operating revenues from external customers
Intersegment revenues or transfers
Total
Segment profit (loss)
Segment assets
Other items:
Depreciation and amortization
Amortization of goodwill
Increase in property and equipment and intangible assets
Reportable Segments
Other
Total
Adjustments
Consolidated
Yen (Millions)
¥12,476
24,167
¥36,643
(34)
¥
24,930
444
–
974
¥ 728,683
259,121
¥ 987,804
¥ (453,603)
3,186,442
176,352
2,115
155,070
¥
–
(259,121)
¥(259,121)
¥ (11,171)
21,441
–
–
1,640
¥ 728,683
–
¥ 728,683
¥ (464,774)
3,207,883
176,352
2,115
156,710
Notes:
1. “Other” refers to all business segments that are not included in the reportable segments, such as facility management, business support, and other operations.
2. Adjustments are as follows:
(a) Adjustments to segment profit or loss consist of corporate expenses.
(b) Adjustments to segment assets consist of long-term investments (investment securities and stocks of subsidiaries and affiliates) in consolidated subsidiaries of ¥175,565
million and eliminations of intersegment transactions of ¥(154,124) million.
(c) Adjustments to increase in property and equipment and intangible assets mainly consist of the elimination of intersegment transactions.
3. Segment profit or loss is reconciled to operating loss on the consolidated statement of operations.
Yen (Millions)
Reportable Segments
As of and for the year ended March 31, 2020
Operating revenues:
Operating revenues from external customers
Intersegment revenues or transfers
Total
Segment profit
Segment assets
Other items:
Depreciation and amortization
Amortization of goodwill
Increase in property and equipment and intangible assets
Air
Transportation
¥1,658,763
78,974
¥1,737,737
¥ 49,550
2,305,293
168,296
3,889
343,476
Airline Related
Travel Services
Trade and Retail
Subtotal
¥ 49,804
249,629
¥299,433
¥ 18,144
147,275
5,323
3
6,200
¥134,759
9,237
¥143,996
¥ 1,393
42,405
553
–
258
¥115,269
29,481
¥144,750
¥ 2,909
57,219
1,305
114
2,250
¥1,958,595
367,321
¥2,325,916
¥ 71,996
2,552,192
175,477
4,006
352,184
144
145
Financial / Data Section
Notes to Consolidated Financial Statements
As of and for the year ended March 31, 2020
Operating revenues:
Operating revenues from external customers
Intersegment revenues or transfers
Total
Segment profit
Segment assets
Other items:
Depreciation and amortization
Amortization of goodwill
Increase in property and equipment and intangible assets
Reportable Segments
Other
Total
Adjustments
Consolidated
Yen (Millions)
¥15,621
28,602
¥44,223
¥ 3,526
25,276
262
–
141
¥1,974,216
395,923
¥2,370,139
75,522
¥
2,577,468
175,739
4,006
352,325
¥
–
(395,923)
¥(395,923)
¥ (14,716)
(17,315)
–
–
(964)
¥1,974,216
–
¥1,974,216
¥ 60,806
2,560,153
175,739
4,006
351,361
Notes:
1. “Other” refers to all business segments that are not included in the reportable segments, such as facility management, business support, and other operations.
2. Adjustments are as follows:
(a) Adjustments to segment profit consist of the elimination of intersegment transactions of ¥(9,979) million and corporate expenses of ¥(4,734) million.
(b) Adjustments to segment assets consist of long-term investments (investment securities and stocks of subsidiaries and affiliates) in consolidated subsidiaries of ¥157,553
million and eliminations of intersegment transactions of ¥(174,868) million.
(c) Adjustments to increase in property and equipment and intangible assets mainly consist of the elimination of intersegment transactions.
3. Segment profit is reconciled to operating income on the consolidated statement of operations.
As of and for the year ended March 31, 2021
Operating revenues:
Operating revenues from external customers
Intersegment revenues or transfers
Total
Segment profit (loss)
Segment assets
Other items:
Depreciation and amortization
Amortization of goodwill
Increase in property and equipment and intangible assets
Air
Transportation
$ 5,164,023
291,798
$ 5,455,821
$(4,045,650)
26,517,505
1,526,077
18,074
1,365,694
As of and for the year ended March 31, 2021
Operating revenues:
Operating revenues from external customers
Intersegment revenues or transfers
Total
Segment profit (loss)
Segment assets
Other items:
U.S. dollars (Thousands)
Reportable Segments
Airline Related
Travel Services
Trade and Retail
Subtotal
$ 326,637
1,679,857
$2,006,494
33,339
$
1,278,384
45,822
–
14,126
$356,363
50,555
$406,918
$ (45,921)
286,162
4,660
–
1,210
$622,193
100,036
$722,229
$ (38,677)
474,645
12,347
1,029
10,857
$ 6,469,216
2,122,247
$ 8,591,464
$ (4,096,910)
28,556,697
1,588,907
19,103
1,391,888
U.S. dollars (Thousands)
Reportable Segments
Other
Total
Adjustments
Consolidated
$112,690
218,291
$330,981
$ (307)
225,182
$ 6,581,907
2,340,538
$ 8,922,446
$ (4,097,217)
28,781,880
$
–
(2,340,538)
$(2,340,538)
(100,903)
$
193,668
$ 6,581,907
–
$ 6,581,907
$ (4,198,121)
28,975,548
Depreciation and amortization
Amortization of goodwill
Increase in property and equipment and intangible assets
4,010
–
8,797
1,592,918
19,103
1,400,686
–
–
14,813
1,592,918
19,103
1,415,499
Notes:
1. “Other” refers to all business segments that are not included in the reportable segments, such as facility management, business support, and other operations.
2. Adjustments are as follows:
(a) Adjustments to segment profit or loss consist of corporate expenses.
(b) Adjustments to segment assets consist of long-term investments (investment securities and stocks of subsidiaries and affiliates) in consolidated subsidiaries of $1,585,809
thousand and eliminations of intersegment transactions of $(1,392,141) thousand.
(c) Adjustments to increase in property and equipment and intangible assets mainly consist of the elimination of intersegment transactions.
3. Segment profit or loss is reconciled to operating loss on the consolidated statement of operations.
(d) Information about geographical areas
Net sales to third parties by countries or areas grouped according to geographical classification for the years ended March 31, 2021 and 2020
are summarized as follows:
Japan
Overseas
Total
Notes:
1. “Overseas” consists substantially of the Americas, Europe, China, and Asia.
2. Net sales of “Overseas” represents sales made in countries or areas other than Japan.
Yen (Millions)
2021
¥546,616
182,067
¥728,683
2020
¥1,631,052
343,164
¥1,974,216
U.S. dollars
(Thousands)
2021
$4,937,367
1,644,539
$6,581,907
(e) Information about impairment loss on long-lived assets
As of and for the year ended March 31, 2021
Impairment loss
As of and for the year ended March 31, 2020
Impairment loss
As of and for the year ended March 31, 2021
Impairment loss
Air
Transportation
¥73,742
Air
Transportation
¥22,665
Air
Transportation
$666,082
Reportable Segments
Yen (Millions)
Airline Related
¥–
Travel Services
¥1,172
Trade and Retail
¥661
Other
¥–
Adjustments
¥–
Total
¥75,575
Reportable Segments
Yen (Millions)
Airline Related
¥2,494
Travel Services
¥–
Trade and Retail
¥–
Other
¥–
Adjustments
¥–
Total
¥25,159
U.S. dollars (Thousands)
Reportable Segments
Airline Related
$–
Travel Services
$10,586
Trade and Retail
$5,970
Other
$–
Adjustments
$–
Total
$682,639
(f) Information about amortization and the remaining balance of goodwill
As of and for the year ended March 31, 2021
Amortization of goodwill
Balance at the end of the fiscal year
As of and for the year ended March 31, 2020
Amortization of goodwill
Balance at the end of the fiscal year
As of and for the year ended March 31, 2021
Amortization of goodwill
Balance at the end of the fiscal year
Reportable Segments
Yen (Millions)
Airline Related
¥–
Travel Services
¥–
Trade and Retail
¥114
Other
¥–
¥–
¥344
Reportable Segments
Yen (Millions)
Airline Related
¥3
Travel Services
¥–
Trade and Retail
¥114
Other
¥–
¥–
¥458
U.S. dollars (Thousands)
Reportable Segments
Airline Related
$–
Travel Services
$–
Trade and Retail
$1,029
Other
$–
$–
$3,107
¥–
¥–
¥–
¥–
$–
$–
Air
Transportation
¥ 2,001
¥22,002
Air
Transportation
¥ 3,889
¥24,003
Air
Transportation
$ 18,074
$198,735
Adjustments
¥–
¥–
Total
¥ 2,115
¥22,346
Adjustments
¥–
¥–
Total
¥ 4,006
¥24,461
Adjustments
$–
$–
Total
$ 19,103
$201,842
19. Selling, general and administrative expenses
The main components of selling, general and administrative expenses for the years ended March 31, 2021 and 2020 are as follows:
Commissions
Advertising
Employees’ salaries and bonuses
Provision of allowance for doubtful accounts
Provision for accrued bonuses to employees
Retirement benefit expenses
Depreciation
Outsourcing expenses
Yen (Millions)
2021
¥39,125
5,943
31,299
47
1,098
2,866
26,968
28,580
2020
¥103,495
11,830
39,446
46
3,879
3,329
27,616
30,227
U.S. dollars
(Thousands)
2021
$353,400
53,680
282,711
424
9,917
25,887
243,591
258,151
146
147
Financial / Data Section
Notes to Consolidated Financial Statements
20. Amounts per share
Amounts per share at and for the years ended March 31, 2021 and 2020 are as follows:
Net assets per share
Net (loss) income per share
Yen
2021
¥ 2,141.49
(1,082.04)
2020
¥3,171.80
82.66
U.S. dollars
2021
$19.34
(9.77)
Notes: 1. Net income per share assuming full dilution is not disclosed as the Company had no potentially dilutive shares outstanding during the years ended March 31, 2021 and 2020.
2. The basis for calculating net income per share is as follows:
Year ended March 31
Net (loss) income attributable to common shareholders
Amount not attributable to common shareholders
Net (loss) income attributable to common stock
Weighted-average number of shares outstanding during the fiscal year (in thousands)
3. The basis for calculating net assets per share is as follows:
As of March 31
Net assets
Amounts deducted from total net assets:
Non-controlling interests
Net assets attributable to common stock at the end of the fiscal year
Yen (Millions)
2021
¥(404,624)
–
(404,624)
373,945
2020
¥ 27,655
–
27,655
334,559
Yen (Millions)
2021
¥1,012,320
2020
¥1,068,870
U.S. dollars
(Thousands)
2021
$(3,654,809)
–
(3,654,809)
373,945
U.S. dollars
(Thousands)
2021
$9,143,889
(5,087)
¥1,007,233
(7,842)
¥1,061,028
(45,948)
$9,097,940
N umber of shares of common stock at the end of the fiscal year used to determine net
assets per share (in thousands)
470,342
334,519
470,342
The average number of shares of the Company held by the Trust for Delivery of Shares to Directors for the years ended March 31, 2021 and
2020 were 183 thousand and 173 thousand, respectively. The shares held by the trust were deducted from the weighted-average number of
shares outstanding during each of the years ended March 31, 2021 and 2020.
The number of shares of the Company held by the Trust for Delivery of Shares to Directors at March 31, 2021 and 2020 were 178 thousand and
209 thousand, respectively. The shares held by the trust were deducted from the number of shares of common stock at the end of each of the
years ended March 31, 2021 and 2020, which were used to determine net assets per share.
21. Supplementary cash flow information
A reconciliation of the difference between cash and deposits stated in the consolidated balance sheet at March 31, 2021 and 2020 and cash and
cash equivalents in the consolidated statement of cash flows is as follows:
Cash and deposits
Time deposits with maturities of more than three months
Marketable securities
Marketable securities with maturities of more than three months
Cash and cash equivalents
22. Impairment loss
Yen (Millions)
2021
¥ 464,739
(241,397)
500,980
(354,000)
¥ 370,322
2020
¥109,447
(31,120)
129,200
(71,590)
¥135,937
U.S. dollars
(Thousands)
2021
$ 4,197,805
(2,180,444)
4,525,155
(3,197,543)
$ 3,344,973
The Group reviewed its long-lived assets for impairment for the years ended March 31, 2021 and 2020. As a result, the Group recognized
impairment losses of ¥75,575 million ($682,639 thousand) and ¥25,159 million, included in other expenses, for the years ended March 31, 2021
and 2020, respectively. The details are as follows:
For the year ended March 31, 2021
Application
Assets expected to be sold
Dormitory/company housing
Business assets
Location
Tokyo
Tokyo, Chiba
Tokyo, Chiba, other
Category
Aircrafts, buildings, and other assets
Land, buildings, and other assets
S oftware, buildings, furniture and
fixtures, and other assets
Total
Yen (Millions)
U.S. dollars
(Thousands)
Impairment loss
¥71,344
2,159
2,072
¥75,575
$644,422
19,501
18,715
$682,639
Note: The Group grouped its operating assets for impairment testing based on management accounting categories, and also grouped lease assets, assets to be disposed of by
sale, and idle assets on an individual basis.
Regarding the assets expected to be sold, in order to deal with the drastic decrease in air passenger demand due to COVID-19, we have decided to implement the
“Changes to the ANA Group’s New Business Model”. Based on this model, we have retired some of the aircrafts and sold some of the training facilities to achieve the
conversion of the cost structure. For this reason, the book value was reduced to the recoverable amount in the current consolidated fiscal year, and the reduced amount
was recorded as an impairment loss of ¥71,344 million ($644,422 thousand) as an extraordinary loss (Business restructuring expense). Details are as follows: ¥66,524
million ($600,885 thousand) for aircrafts, ¥4,619 million ($41,721 thousand) for buildings, and ¥201 million ($1,815 thousand) for other assets.
148
The net selling price of the aircrafts is reasonably calculated based on our latest sales record, not the price assuming reuse as an aircraft, considering the impact of decrease in
air passenger demand due to COVID-19. It is calculated by deducting the estimated processing cost from the estimated selling price. In addition, the net selling price of the
training facility is calculated based on the real estate appraisal value using the sales comparison approach by an outside expert.
Regarding the dormitory/company housing which are scheduled to be sold, the book value was reduced to the recoverable amount in the current consolidated fiscal year, and
the reduced amount was recorded as an impairment loss of ¥2,159 million ($19,501 thousand) as an extraordinary loss. Details are as follows: ¥1,082 million ($9,773 thousand)
for land, ¥1,064 million ($9,610 thousand) for buildings, and ¥13 million ($117 thousand) for other assets.
Regarding business assets, the book value was reduced to the recoverable amount in the current consolidated fiscal year due to the decline in profitability, and the reduced
amount was recorded as an extraordinary loss as an impairment loss of ¥2,072 million ($18,715 thousand). Details are as follows: ¥731 million ($6,602 thousand) for software,
¥627 million ($5,663 thousand) for buildings, ¥177 million ($1,598 thousand) for furniture and fixtures, and ¥537 million ($4,850 thousand) for other assets.
The recoverable value of the assets expected to be sold is measured by the net selling price and calculated based on the estimated selling price. For business assets, among
asset groups in which profit and loss resulting from operating activities continues to be negative, the book value is reduced to the recoverable value for assets for which the total
amount of future cash flows before discount is less than the book value, and the amount is recorded as an extraordinary loss as an impairment loss.
For the year ended March 31, 2020
Application
Assets expected to be sold
Location
Miami, Florida
Others
Peach Aviation Limited
Category
Machinery, intangible assets,
lease assets, and other assets
Goodwill
Total
Yen (Millions)
Impairment loss
¥ 2,494
22,665
¥25,159
Note: The Group grouped its operating assets for impairment testing based on management accounting categories, and also grouped lease assets, assets to be disposed of by
sale and idle assets on an individual basis. Business assets in Miami, Florida were written-down to recoverable amounts, based on the updated business plan. As a result,
an impairment loss of ¥2,494 million was recognized. Details are as follows: ¥1,767 million for machinery, ¥693 million for lease assets, and ¥32 million for other assets.
Also, goodwill for Peach Aviation Limited, a consolidated subsidiary of the Company, were written-down to recoverable amounts, based on their value in use. As a result,
an impairment loss of ¥22,665 million was recognized. The recoverable amount of these assets was measured at its net selling price or their value in use. The net selling
price is determined by estimates of selling cost and selling price. The value in use is calculated by discounting the future cash flows at discount rates of 11.5%.
23. Supplementary information for the consolidated statement of operations
(a) Write-downs of inventories
Inventories were valued using prices after write-downs of book value due to a decrease in net selling value.
Write-downs of inventories included in cost of sales are as follows:
Note: Figures in parentheses represent gains from the reversal of write-downs.
(b) Other income (expenses), net
Employment adjustment subsidy
Compensation payments received
Gain on sales of investment securities
Valuation loss on investments in securities
Other (*)
Other, net (*)
Yen (Millions)
2021
¥4,172
2020
¥1,181
U.S. dollars
(Thousands)
2021
$37,684
Yen (Millions)
2021
¥43,470
1,770
31
(8,384)
5,556
¥42,443
2020
¥
–
17,897
1,122
(853)
(2,976)
¥15,190
U.S. dollars
(Thousands)
2021
$392,647
15,987
280
(75,729)
50,185
$383,370
(*) “Commission fee” and “Loss on valuation of derivatives” included in “Other, net” under “Other income (expenses)” in the previous fiscal year have been presented separately in
the current fiscal year, as the amounts are now material. To reflect this change in the presentation method, consolidated financial statements for the previous fiscal year have
been reclassified. As a result, ¥14,567 million presented in “Other, net” under “Other income (expenses)” in the consolidated statement of operations for the previous fiscal year
has been reclassified into ¥(20) million of “Commission fee” and ¥(603) million of “Loss on valuation of derivatives” and ¥15,190 million of “Other, net.”
(c) Business restructuring expense
The Group recorded business restructuring expense of ¥86,350 million ($779,965 thousand) for the current consolidated fiscal year.
The main components include an impairment loss of ¥71,344 million ($644,422 thousand) related to the early retirement of aircraft implemented
as part of the business restructuring, a loss on sales and disposal of fixed assets of ¥8,578 million ($77,481 thousand), and other items such as
early retirement buyout payment.
149
Financial / Data Section
Independent Auditor’s Report
150
151
Financial / Data Section Independent Auditor’s Report
152
153
Financial / Data Section Independent Auditor’s Report
154
155
Financial / Data Section Independent Auditor’s Report
Joint Venture
A joint business in the international airline industry
between two or more airlines. Restrictions such
as bilateral air agreements between countries and
caps on foreign capital investments still exist in
the international airline industry. Therefore, airlines
form ATI-based joint ventures, instead of the
commonly known methods used in other
industries such as capital tie-ups and M&As, etc.
By forming joint ventures, airlines in the same
global alliance are able to offer travelers a
broader, more flexible network along with less
expensive fares, thus strengthening their compet-
itiveness against other alliances (or joint ventures).
Full Service Carrier (FSC)
An airline company that serves a wide range of
markets based on a route network that includes
code-sharing connecting demand. FSCs offer
multiple classes of seats and provide in-flight food
and beverages that are included in advance in the
fare paid. FSCs are also called network carriers or
legacy carriers when compared with low cost
carriers (LCCs).
Low Cost Carrier (LCC)
An airline that provides air transportation services
at low fares based on a low-cost system that
includes using a single type of aircraft, charging
for in-flight services, and simplifying sales.
Fundamentally, LCCs operate frequent short- and
medium-haul point-to-point flights (flights
between two locations).
Maintenance, Repair, and Overhaul
(MRO) Business
A business that is contracted to provide aircraft
maintenance services using its own maintenance
crew and other personnel, along with dedicated
facilities. Services include the maintenance, repair,
and overhaul of aircraft and other equipment
owned by airlines.
Glossary
Passenger Business Terms
Available Seat-Kilometers (ASK)
A unit of passenger transport capacity, analogous
to “production capacity.” Total number of seats x
Transport distance (kilometers).
Revenue Passenger-Kilometers (RPK)
Total distance flown by revenue-paying passen-
gers aboard aircraft. Revenue-paying passengers
x Transport distance (kilometers).
Load Factor
Indicates the seat occupancy ratio (status of
seat sales) as the ratio of revenue passenger-
kilometers to available seat-kilometers. Revenue
passenger-kilometers / Available seat-kilometers.
Yield
Unit revenues per revenue passenger-kilometer.
Revenues / Revenue passenger-kilometers.
Unit Revenues
Quantitatively measures revenue management
performance by showing unit revenues per
available seat-kilometer (Revenues / Available
seat-kilometers). Calculated as yield (Revenues /
Revenue passenger-kilometers) x load factor
(Revenue passenger-kilometers / Available
seat-kilometers).
Unit Cost
Indicates cost per unit in the airline industry.
Calculated as cost per available seat-kilometer.
Revenue Management
This management technique maximizes revenues
by enabling the best mix of revenue-paying
passengers through yield management that
involves optimum seat sales in terms of optimum
timing and price based on network and fare
strategy.
Optimizing Supply to Demand
Involves flexibly controlling production capacity
(available seat-kilometers) according to demand
trends in ways such as increasing or decreasing
the frequencies on routes and adjusting aircraft
size.
VFR (Visiting Friends and Relatives)
Refers to travel for the purpose of visiting
friends and relatives.
Cargo Business Terms
Available Ton-Kilometers (ATK)
A unit of cargo transport capacity expressed as
“production capacity.” Total cargo capacity (tons)
x Transport distance (kilometers).
Revenue Ton-Kilometers (RTK)
Total distance carried by each revenue-paying
cargo aboard aircraft. Revenue-paying cargo
(tons) x Transport distance (kilometers).
Freighter
Dedicated cargo aircraft. Seats are removed from
the cabin space where passengers would
normally sit, and the space is filled with containers
or palletized cargo.
Belly
The space below the cabin on passenger aircraft
that is used to transport cargo.
Airline Industry and
Company Terms
IATA
The International Air Transport Association.
Founded in 1945 by airlines operating flights
primarily on international routes, functions include
managing arrival and departure slots at airports
and settling receivables and payables among
airline companies. Approximately 290 airlines are
IATA members.
ICAO
The International Civil Aviation Organization. A
specialized agency of the United Nations created
in 1944 to promote the safe and orderly develop-
ment of international civil aviation. More than 190
countries are ICAO members.
Star Alliance
Established in 1997, Star Alliance was the first
and is the world’s largest airline alliance. ANA
became a member in October 1999. As of July
2021, 26 airlines from around the world are
members.
Code-Sharing
A system in which airline alliance partners allow
each other to add their own flight numbers on
other partners’ scheduled flights. The frequent
result is that multiple companies sell seats on one
flight. Also known as jointly operated flights.
Antitrust Immunity (ATI)
Granting of advance approval for immunity from
competition laws when airlines operating
international routes cooperate on planning routes,
setting fares, conducting marketing activities, or
other areas, so that the airlines are not in violation
of the competition laws of such countries. In
Japan, the United States, and South Korea, the
relevant department of transportation grants ATI
based on an application (in countries other than
these three, it is common for a bureau such as a
fair trade commission to be in charge), but in the
European Union the business itself performs a
self-assessment based on the law. ATI approval
is generally based on the two conditions that the
parties do not have the power to control the
market and approval will increase user
convenience.
156
157
Financial / Data Section ANA-Operated International Routes
Stockholm
Stockholm
Dusseldorf
Dusseldorf
London
London
Paris
Paris
Vienna
Vienna
Moscow
Moscow
Brussels
Brussels
Istanbul
Istanbul
Frankfurt
Frankfurt
Munich
Munich
Milano
Milano
Vladivostok
Vladivostok
Shenyang
Shenyang
Beijing
Beijing
Dalian
Dalian
Qingdao
Qingdao
Seoul
Shanghai
Wuhan
Seoul
Shanghai
Wuhan
Shenzhen
Shenzhen
Chengdu
Hangzhou
Chengdu
Hangzhou
Delhi
Hong Kong
Hong Kong
Delhi
Xiamen Taipei
Xiamen Taipei
Guangzhou
Guangzhou
Hanoi
Hanoi
Yangon
Yangon
Bangkok
Bangkok
Manila
Manila
Ho Chi Minh City
Ho Chi Minh City
Kuala Lumpur
Kuala Lumpur
Mumbai
Mumbai
Chennai
Chennai
Phnom Penh
Phnom Penh
Haneda Narita
Haneda Narita
Vancouver
Vancouver
Note: Including routes suspended due to COVID-19
Compilation by ANA HOLDINGS INC. (As of August 1, 2021)
Seattle
Seattle
San Francisco
San Francisco
Chicago
Chicago
New York
New York
Los Angeles
Los Angeles
Washington, D.C.
Washington, D.C.
Honolulu
Honolulu
San Jose
San Jose
Houston
Houston
Mexico City
Mexico City
Osaka routes
Dalian
Beijing
Qingdao
Shanghai
Hangzhou
Hong Kong
Singapore
Singapore
Jakarta
Jakarta
Peach Aviation-Operated Routes
Sapporo (New Chitose)
Niigata
Osaka (Kansai)
Perth
Perth
Sydney
Sydney
Haneda routes
Narita routes
Haneda / Narita routes
Nagoya (Chubu)
Fukuoka
Seoul (Incheon)
Nagasaki
Miyazaki
Kagoshima
Shanghai
Taipei
(Taoyuan)
Memanbetsu
Kushiro
Sendai
Osaka
(Kansai)
Oita
Tokyo (Narita)
Tokyo (Haneda)
Hong Kong
Ishigaki
Amami Oshima
Kaohsiung
Okinawa (Naha)
Bangkok
セブ
158
159
Financial / Data Section Market Data
Environmental and Social Data
Global Air Transportation Passenger Volume by Region
Foreign Visitor Arrivals / Number of Japanese Overseas Travelers
International Passenger Market
RPK
(Billions)
9,000
6,000
3,000
0
2015
2016
2017
2018
2019
2020
3,000
2,000
1,000
1,145
2,986
716
672
228
165
59
0
(CY)
(Thousands)
32,000
24,000
20,509
18,686
16,000
8,000
0
2016
2017
2018
2019
2020
(FY)
242 306
For further information, Fact Book 2021 can be downloaded from
the ANA Group corporate website in PDF format.
https://www.ana.co.jp/group/en/investors/irdata/annual/
Environmental
Fuel-Efficient Aircraft (No. / Ratio)
CO2 Emissions
(10,000 tons)
2,000
1,500
1,000
500
0
(Aircraft)
240
180
120
60
0
745
177.2
7.0
560.4
195
72.5
(%)
100
75
50
25
0
(FY)
2016
2017
2018
2019
2020
(FY)
2016
2017
2018
2019
2020
(Left)
Total
(Right)
: Asia-Pacific
: North America
: Europe
Foreign Visitor Arrivals
Japanese Overseas Travelers
Scope 1
Scope 2
Scope 3
(Left)
Aircraft
(Right)
Ratio
: Middle East
: Latin America
: Africa
Source: International Air Transport Association (IATA), 2021
Source: Japan National Tourism Organization (JNTO), 2021
* Fiscal 2016–fiscal 2017: Scope 3, categories 6 and 7 calculated / Fiscal 2018: Scope 3, categories 2–4, 6, and
7, calculated / Fiscal 2019– : Scope 3, all categories calculated
* ANA brand aircraft (jets) until fiscal 2018; ANA Group aircraft (jets) in fiscal 2019 and onward
* Fuel-efficient aircraft: Boeing 777, 787, 737-700 and -800; Airbus A320neo and A321neo
Number of Domestic Passengers and LCC Share
ANA Domestic Passenger Business: ASK, RPK, and Number of Passengers
Ratio of Female Managers / Ratio of Female Directors (ANA)
Number of Employees Hired Overseas (ANA)
Domestic Passenger Market
Social
Number of Passengers
(Millions)
100
80
60
40
20
0
LCC Share
(%)
11.0
15
12
9
6
3
0
(FY)
(Millions)
80,000
60,000
40,000
20,000
0
(Thousands)
60,000
(%)
45,000
30,000
15,000
26,896
12,660
11,567
16
12
8
4
0
15.6
14.6
(People)
2,000
1,500
1,000
500
0
1,404
2016
2017
2018
2019
2020
0
(FY)
2017
2018
2019
2020
2021
(As of April 1
of each year)
2017
2018
2019
2020
2021
(As of March 31
of each year)
2016
2017
2018
2019
2020
(Left)
Full Service Carriers
LCC
(Right)
LCC Share
(Left)
RPK
ASK
(Right)
Number of Passengers
Ratio of Female Managers
Ratio of Female Directors
Source: Ministry of Land, Infrastructure, Transport and Tourism, fiscal 2020
International Cargo Market
Global Freight Ton Carried by Region
ANA International Cargo Operations: ATK and RTK
Ratio of Employees with Disabilities (ANA)
Ratio of Managers Hired Mid-Career / Ratio of Non-Japanese Managers* (ANA)
(Thousand Tons)
80,000
60,000
40,000
20,000
0
28,000
21,000
14,000
7,000
0
57,529
20,509
18,686
9,907
5,650
1,818
960
(Millions)
8,000
6,000
4,000
2,000
0
4,588
3,251
(%)
3.0
2.0
1.0
0
2.80
2.3
(%)
10.0
7.5
5.0
2.5
0
9.9
3.5
2016
2017
2018
2019
2020
(CY)
2016
2017
2018
2019
2020
(FY)
2017
2018
2019
2020
2021(As of June 1 of each year)
2017
2018
2019
2020
2021
(As of March 31 of each year)
(Left)
Total
(Right)
: Asia-Pacific
: North America
: Europe
ATK
RTK : North America
: Europe
: China
Ratio of Employees with Disabilities
Legally Mandated Ratio
Ratio of Managers Hired Mid-Career
Ratio of Non-Japanese Managers
: Middle East
: Latin America
: Africa
: Asia / Oceania
: Others
Source: International Air Transport Association (IATA), 2021
Notes: 1. Figures for China include the Hong Kong routes.
2. Figures for Asia / Oceania include the Vladivostok routes.
3. Figures for Others include RFS (Road Feeder Service).
160
* Ratio of non-Japanese managers is calculated excluding TC1 (Americas region) as defined by the International
Air Transport Association (IATA)
161
Financial / Data Section
Social Data
Human Resources Data (ANA)
Number of employees (As of March 31 of each year)
Number of employees hired overseas (as of March 31)
Number of overseas managers hired locally
(As of March 31 of each year)
Average age of employees (As of March 31 of each year)
Average years worked (As of March 31 of each year)
Ratio of managers hired mid-career (as of March 31)
Ratio of non-Japanese managers*1 (as of March 31)
Ratio of female managers
(As of April 1 of each year, excluding individuals 60 years old and over)
Ratio of female directors (As of April 1 of each year)
Unit
People
People
People
Years
Years
%
%
%
%
2017
13,518
1,454
127
37.4
13.3
7.4
—
13.3
10.5
2018
13,982
1,475
135
37.4
13.8
9.2
—
13.9
10.0
2019
14,242
1,442
161
37.5
14.2
9.3
2.7
14.6
11.9
2020
14,830
1,464
157
38.0
13.6
9.4
2.9
15.2
13.3
2021
15,114
1,404
173
37.9
12.5
9.9
3.5
15.6
14.6
Number of employees on pregnancy or childcare leave / Male
(As of March 31 of each year)
Number of employees on nursing care leave
(As of March 31 of each year)
Ratio of employees with disabilities*2 (As of June 1 of each year)
People
People
Work-related accidents (As of March 31 of each year)
Ratio of employees with healthy BMI*3 (As of March 31 of each year)
Male
Female
Ratio of employees that smoke (As of March 31 of each year)
Male
Female
Employee obesity rate*4 (As of March 31 of each year)
Male
Female
545/13
587/19
629/20
645/29
643/27
14
2.38
109
69.1
69.8
19.4
4.0
14.9
1.2
15
2.49
82
70.2
72.0
19.1
3.9
15.7
1.3
16
2.57
111
72.9
72.6
17.2
3.7
11.1
1.4
10
2.68
69
72.5
73.0
16.7
3.1
12.9
1.0
11
2.80
25
67.7
70.1
14.5
2.6
8.2
1.7
%
%
%
%
%
%
%
*1 Excluding TC1 (Americas region) as defined by the International Air Transport Association (IATA)
*2 Total of ANA HOLDINGS INC., ANA, and qualified ANA Group companies (total of 11 companies including 1 special subsidiary)
*3 Ratio of employees with BMI of 18.5%–25.0%
*4 Changing calculation standards from 2018
Before 2017: Ratio of employees receiving guidance from designated healthcare professionals
2018 and later: Ratio of employees meeting criteria for metabolic syndrome
See the following website for more details about the 37th Yen-Based Bond (Social Bond), issued in May 2019:
https://www.anahd.co.jp/group/en/pr/201904/20190417.html
Flight-Related Data (All Passenger Flights on ANA International and Domestic Services)
(FY)
In-service rate
On-time departure rate*5
On-time arrival rate*5
*5 Delays of 15 minutes or less, excluding canceled flights
Customer-Related Data
(FY)
Number of customer feedback reports
[Breakdown by route type]
Domestic
International
Other
[Breakdown by report type]
Complaint
Compliment
Comment / Request
Other
162
Unit
%
%
%
2016
98.9
87.6
85.4
2017
98.8
86.1
84.0
2018
98.2
88.4
86.5
2019
97.4
88.7
87.5
2020
43.5
97.3
96.8
Unit
2016
2017
2018
2019
73,892
114,273
105,723
117,628
%
%
%
%
%
%
%
48.3
37.4
14.3
43.4
16.8
21.5
18.3
56.0
40.1
3.9
41.1
18.5
20.8
19.5
62.4
34.8
2.7
45.8
19.8
16.5
17.8
59.5
37.9
2.7
42.3
21.1
16.6
20.1
2020
59,862
54.6
11.7
33.7
30.1
20.8
28.8
21.3
Environmental Data
The following data is the environmental results related to the ANA Group. From fiscal 2019, we have also added the results of Peach Aviation.
See the ANA Group corporate website for more:
WEB
https://www.ana.co.jp/group/en/csr/data/
Climate Change Countermeasures
(FY)
Carbon dioxide (CO2) emissions
Total
[Breakdown]
Aircraft
Passenger
Cargo
Ground equipment and vehicles
Total
[Breakdown by Scope]
10,000 tons
Scope 1
Scope 2
Scope 3
Unit
2016
2017
2018
2019
2020
10,000 tons
1,126
1,161
1,156
1,246
1,114
1,058
56
11.8
1,127
1,148
1,097
50
13.5
1,162
1,118
1,152
8.3
0.4*1
9.2
0.4*1
1,143
1,098
45
13.2
1,306
1,147
8.9
150.4*2
1,233
1,196
37
12.6
1,682
1,237.3
8.4
436.4*3
Aircraft CO2 emissions per RTK
kg-CO2
1.00
0.96
0.97
1.01
Total energy consumption
Total
Crude oil equipment: 10,000 kl
[Breakdown] Aircraft energy
Ground energy (non-aircraft operations)
Ozone depletion (ANA only)
Fluorocarbon
[Breakdown] Aircraft
Ground (non-aircraft operations)
Halon
[Breakdown] Aircraft
Fuel-efficient aircraft*5
ANA Group (jet aircraft)
Number of aircraft
Ratio
ANA Brand (jet aircraft)
Number of aircraft
Ratio
kg
Aircraft
%
Aircraft
%
*1 Fiscal 2016–fiscal 2017 Scope 3, categories 6 and 7 calculated, third-party certified.
*2 Scope 3 data for fiscal 2018 is calculated in categories 2–4, 6, 7, and assured.
*3 Scope 3 data for fiscal 2019 is calculated in all categories.
*4 Calculated beginning fiscal 2020
*5 Boeing 777, 787, 737-700, -800, Airbus A320neo, and A321neo
434
428
5.5
8.8
—
29.4
155
62.8
155
66.0
448
441
6.5
5.3
—
5.0
162
60.4
162
69.5
567
558
490
68
9.3
745
560.4
7.0
177.2
1.25
219
214
4.8
2.9
254*4
446
439
6.4
9.4
—
480
474
6.3
2.7
—
28.8
31.7
20.5
183
65.3
183
75.9
199
70.3
199
81.2
195
72.5
192
83.1
See the following website for more details about the 36th Yen-Based Bond (Green Bond), issued in October 2018:
https://www.anahd.co.jp/group/en/pr/201809/20180928.html
Resource Savings
(FY)
Waste produced
Total
[Breakdown]
1,000 tons
General waste (Cabin waste and sewage included)
General waste (Ground waste included)
Industrial waste
Total paper consumption
Total water consumption
[Breakdown]
Clean water
Non-potable water
1,000 tons
10,000 kl
Unit
2016
2017
2018
2019
2020
36.8
28.7
3.0
5.1
4.6
57.8
7.2
37.5
31.5
2.6
3.4
4.0
61.4
9.4
34.3
28.4
2.7
3.2
3.2
61.1
8.6
22.9
15.3
2.9
4.7
3.1
60.7
7.8
11.1
6.4
1.0
3.7
1.4
30.7
4.5
163
Financial / Data Section
The ANA Group Profile
Corporate Data (As of March 31, 2021)
ANA HOLDINGS INC. Organization (As of July 1, 2021)
General Meeting of
Shareholders
Internal Audit Division
Board of Directors
Chairman
President &
Chief Executive Officer
Audit & Supervisory
Board Members
Audit & Supervisory Board
Audit & Supervisory Board
Members Office
Group Management Committee
Group ESG Management
Promotion Committee
Corporate Communications and Branding
General Administration
Corporate Sustainability
Executive Secretariat
Government & Industrial Affairs
Legal & Insurance
Human Resources Strategy
D&I Promotion
Group IT Management
Digital Design Lab
Corporate Planning
Corporate Strategy
Business Development
Finance, Accounting
Mid-haul LCC Preparatory Office
Finance, Accounting & Investor Relations
Business Management
Facilities Planning
Number of Subsidiaries and Affiliates (As of March 31, 2021)
Operating segment
of which, consolidated
of which, equity method
of which, equity method
Total of subsidiaries
Total of affiliates
Air Transportation
Airline Related
Travel Services
Trade and Retail
Others
Total
5
42
5
63
10
125
4
31
5
8
8
56
—
—
—
—
1
1
3
5
3
2
29
42
1
2
1
—
9
13
Major Subsidiaries (As of March 31, 2021)
Company name
Amount of capital (¥ Millions)
Ratio of voting rights holding (%)
Principal business
Air Transportation
ALL NIPPON AIRWAYS CO., LTD.
Air Japan Co., Ltd.
ANA WINGS CO., LTD.
Peach Aviation Limited
Airline Related
ANA Cargo Inc.
Overseas Courier Service Co., Ltd.
ANA Systems Co., Ltd.
Travel Services
ANA Sales Co., Ltd.
Trade and Retail
25,000
50
50
7,515
100
100
80
100
ALL NIPPON AIRWAYS TRADING Co., Ltd.
1,000
Note: No specified wholly owned subsidiaries as of the end of the fiscal year under review
100.0
100.0
100.0
77.9
100.0
91.5
100.0
100.0
100.0
Air transportation
Air transportation
Air transportation
Air transportation
Cargo operations
Express shipping business
Innovation and operation of IT systems
Planning and sales of travel packages, etc.
Trading and retailing
Corporate Profile
Trade Name
ANA HOLDINGS INC.
Administrator of Register
Date of Foundation
December 27, 1952
of Shareholders
Sumitomo Mitsui Trust Bank, Limited
Head Office
Shiodome City Center, 1-5-2
Higashi-Shimbashi, Minato-ku,
(Stock Transfer Agency Department)
1-4-1, Marunouchi, Chiyoda-ku, Tokyo
Number of Employees
46,580 (Consolidated)
American Depositary
Receipts Ratio (ADR:ORD): 5:1
Tokyo 105-7140, Japan
Independent Auditor
Deloitte Touche Tohmatsu LLC
Paid-In Capital
Fiscal Year-End
Number of Shares of
¥467,601 million
March 31
Common Stock
Authorized: 510,000,000 shares*
Issued: 484,293,561 shares
Number of Shareholders 672,978
Stock Listing
Tokyo
Ticker Code
9202
* Amendments to the Articles of Incorporation were approved at the 76th Ordinary
General Meeting of Shareholders held June 29, 2021, and the number of authorized
shares was changed to 1,020,000,000.
Exchange: OTC (Over-the-Counter)
Symbol: ALNPY
CUSIP: 032350100
Depositary:
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286, U.S.A.
Tel: 1-201-680-6825
U.S. Toll Free: 1-888-269-2377
(888-BNY-ADRS)
URL: https://www.adrbnymellon.com
Scope of This Report
High
S
t
a
k
e
h
o
d
e
r
s
’
l
p
r
i
o
r
i
t
i
e
s
Reported in
this report
Annual Report (PDF)
https://www.ana.co.jp/group/en/investors/irdata/annual/
Reported
on the website
Management priorities
High
For Further Information (Website)
Corporate Profile https://www.ana.co.jp/group/en/about-us/
Investor Relations https://www.ana.co.jp/group/en/investors/
Sustainability
https://www.ana.co.jp/group/en/csr/
Fact Book 2021
Fact Book 2021 can be downloaded from the Company’s corporate
website in PDF format. This document contains financial data and
information on the domestic and international markets and LCC status.
https://www.ana.co.jp/group/en/investors/irdata/annual/
Forward-Looking Statements
This report contains statements based on the ANA Group’s current plans, estimates, strategies, and beliefs; all statements that are not statements of historical fact are forward-
looking statements. These statements represent the judgments and hypotheses of the group’s management based on currently available information. Air Transportation Business,
the group’s core business, involves government-mandated costs that are beyond the Company’s control, such as airport utilization fees and fuel taxes.
In addition, conditions in the markets served by the ANA Group are subject to significant fluctuations. Factors that could affect actual results include, but are not limited to,
economic trends, sharp changes in exchange rates, fluctuations in the price of crude oil, and disasters.
Due to these risks and uncertainties, the group’s future performance may differ significantly from the contents of this report. Accordingly, there is no assurance that the
forward-looking statements in this report will prove to be accurate.
ANA HOLDINGS INC.
Contact
Shiodome City Center, 1-5-2 Higashi-Shimbashi, Minato-ku, Tokyo 105-7140, Japan
Investor Relations
E-mail: ir@anahd.co.jp
164
165
Financial / Data Section
Printed in Japan