ANA Holdings Inc. Annual Report 2023

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FY2023 Annual Report · ANA Holdings Inc.

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Annual Report 2023

Fiscal 2022 (Year ended March 2023)

Management Vision

Uniting the World in Wonder

ANA inspires our employees, customers, and society

to explore endless possibilities with diverse connections

that begin in the sky.

‘Waku waku’ is what moves people to push what’s possible.

It’s Japanese for the joy and excitement

of discovering the unknown.

And when passed from person to person,

becomes a force that creates a brighter world,

united in wonder.

The sky is full of possibilities, which has allowed us to

bring together people, products and experiences for decades.

Now, we’re expanding our horizons and spreading

‘waku waku’ across the world.

So, we wonder, can we make travel more enjoyable?

Can we renew the way we transport products?

Can we bring excitement to life, while being kind to the earth?

Together with an elevated experience in the sky,

we can explore more incredible discoveries that

will lead to a better tomorrow.

Here is where our new adventure begins.

When people connect across borders and

unite beyond countries,

the world offers endless opportunities.

Together, let our hearts wonder and fill the world with ‘waku waku.’

Contents

04 Management Message

10 The ANA Group Value Creation Process

16 Business Strategy

FY2023-25 ANA Group Corporate Strategy

Business Strategy

Special Feature:

A New Brand: AirJapan

42 Medium- to Long-Term Value Creation

ANA Group ESG Management

48 Materiality

Foundations for Sustainable Corporate
Value Enhancement

Safety

Human Capital

Digital Transformation (DX)

Risk Management

88 Compliance

Corporate Governance

102 Trust Building with Stakeholders

106 Responsible Dialogue with Stakeholders

108 Message from the Independent Outside Directors

113 Message from Chair of the Board of Directors

114 Financial / Data Section

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 growth in corporate
value. 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 manage-
ment 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 2023, we aim to encourage a deeper comprehensive understand-
ing of the social value and economic value created by the ANA Group through our manage-
ment 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, 2022 to March 31, 2023

(including some activities in and after April 2023).

• 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.

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.

Safety is our promise to the public and is
the foundation of our business.

ANA Group

Safety Principles

Safety is assured by an integrated management
system and mutual respect.

Safety is enhanced through individual
performance and dedication.

Management

Vision

ANA’s Way

Uniting the World in Wonder

ANA inspires our employees, customers, and society to
explore endless possibilities with diverse connections that
begin in the sky.

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 founda-

tion 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.

3
3

Management Message

SHIBATA Koji
President &
Chief Executive Officer

United in Purpose to Deepen
Trust and Co-Create Value
with Our Stakeholders

Looking Back on My First Year as President and CEO

Fiscal 2022 was a turning point for the ANA Group.

sharing the importance of continuing to take on chal-

We overcame a business crisis unlike any experienced

lenges with hope and pride. As a result, we returned

in the past, as restrictions began to ease and passen-

to full-year profitability for the first time in three fiscal

ger demand began to recover. Throughout my first

years and shared the joy of achieving an ambitious

year as president, I considered carefully what we

goal with group employees.

should change and what we should not change in the

The end of the three-year journey through the long

post-COVID-19 era. We united the ANA Group, calling

tunnel of the COVID-19 pandemic was not only

on employees to exhibit and value mutual respect,

through our own efforts but also through the support

communicating how their efforts led to results, and

of our stakeholders. These stakeholders included

national and local governments, companies and orga-

of COVID-19, we discussed at a management meeting

nizations, financial institutions, shareholders, and

how to deal with a Lehman shock-level crisis should

customers who continued fly with the ANA Group.

one occur. In retrospect, we may not have been pre-

Once again, I wish to express my appreciation to

pared fully for COVID-19, which was an event far

everyone.

What We Learned at the Far Side
of the Tunnel
In our 70-year history, the ANA Group endured numer-

beyond the Lehman Shock. Perhaps we should have

imagined the possibility of a much larger risk event.

However, thanks to this preparation, we responded

quickly and flexibly to COVID-19 by securing cash on

hand and engaging in emergency cost reduction mea-

ous risk events. The terrorist attacks on the U.S. in

sures in the face of an uncertain future. Early on, we

2001 and the Lehman Brothers collapse in 2008 are

formulated a business structure reform plan, retired

just two examples. But the COVID-19 pandemic was

aircraft earlier than scheduled, and asked employees

truly the largest crisis ever in terms of scale and dura-

to cooperate in terms of compensation. These mea-

tion. We must be sure that we remember the experi-

sures led directly to a recovery in business perfor-

ences gained through overcoming for future

mance. Although we have always taken every

management. When I look back at what the pandemic

conceivable precaution to manage risk, I now under-

taught us, the following three points stand out clearly.

stand firsthand how important it is to identify major

First, that the greatest strength of our group is our

risks during times of normal operations. And when

employees. Our organizational culture is one of coop-

risks do emerge, how to assess the situation appropri-

eration and collaboration that transcends departmen-

ately, make decisions with courage, and implement

tal and occupational barriers. Despite the challenging

decisions rapidly.

business environment during the COVID-19 pandemic,

The third point is the enormous and irreplaceable

the ANA Group remained close to our customers in

value that the ANA Group provides to society. The

daily operations. While adhering strictly to safety, our

COVID-19 pandemic resulted in an extended period of

employees worked together, sharing their knowledge

restrictions on activity. People could not visit family

and wisdom to overcome the challenges. This suc-

and friends. Businesses could not have face-to-face

cess was only possible by preserving our corporate

meetings with suppliers. No one could travel, even if

culture, with every employee acting under our found-

they wanted to. Of course, I understood that certain

ing spirit, Hardship Now, Yet Hope for the Future,

things can be done online rather than in person. But I

walking the path of Wakyo (close cooperation), and

also felt a real sense that there is joy in going some-

embodying Anshin, Attaka, Akaruku-genki!

where physically, taking pleasure in sightseeing and

(Trustworthy, Heartwarming, Energetic!).

food through all five senses. Meeting and interacting

As shown in the engagement score of the ANA’s

with others in person. I saw in a new light how the

Way Survey (ANA Group Employee Engagement

airline business provides not only transportation, but

Survey), employees have a high level of attachment to

also service indispensable to rich and fulfilling lives.

the company and gain a sense of fulfillment in their

Our role is to create global connections and encoun-

work. Through more than 2,000 town meetings held

ters. We are truly a bridge across the sky. Looking

yearly with management, we communicated to every

back on my life, the people I have met, the countries I

employee a correct understanding of our situation with

have visited, and the events I have experienced are

the pandemic, and every employee acted accordingly.

the sustenance of my life today. These memories are a

This engagement is how we worked together and

great source of inspiration for taking on new chal-

moved forward in alignment, even during the most

lenges and helping when I face difficulties, becoming a

difficult times. We reaffirmed that enhancing the power

force behind the progress in my professional and per-

of our people and the power of our organization is of

sonal life. The joy that people derive from real-life

the utmost importance to achieve sustainable corpo-

experiences is a fundamental human need. The value

rate value enhancement.

the ANA Group provides to society by connecting

The second point is the importance of risk manage-

people, goods, and services will never disappear in

ment. In point of fact, six months prior to the outbreak

the post-COVID-19 era.

FY2023-25 ANA Group Corporate Strategy: Toward Our 2030
Management Vision

A New Corporate Strategy Redefines the
Value that the ANA Group Provides to Society
While many group employees were concerned about

The Aims of Our New ANA Group Corporate
Strategy
We finalized our FY2023-25 ANA Group Corporate

our future in the face of the COVID-19 pandemic, we

Strategy in February 2023. Over the next three years,

saw the 70th anniversary of our founding as an oppor-

we intend to shore up our financial foundation while

tunity for growth, and we updated the Group

accelerating business transformation, ensuring full-

Management Vision for the first time in 10 years. We

fledged growth in fiscal 2026 and beyond. Even post-

supported the creation of this vision through the

COVID-19, the central pillar of group growth will be

Future Creation Project, filling our vision with

our Air Transportation Business, and the international

employee aspirations and my own thoughts as well.

passenger business, in particular. The driver of the

Uniting the World in Wonder. This statement

recent recovery in group performance has been

expresses our desire to become an indispensable

increased demand from visitors to Japan, supported

presence in society through group employees who

by pent-up consumption demand and a weaker yen.

work energetically toward a bright future and who

High yields due to tight supply and demand have also

provide value that exceeds the expectations of our

been a factor. The competitive environment surround-

customers. Our vision also expresses our will to

ing international routes is changing dramatically. These

expand business domains beyond the core framework

changes include restructuring among overseas com-

of airlines to next-generation mobility and from the real

petitors, the unstable international situation, and

to the virtual as we emphasize the value of creating

extended restrictions of transit over Russian airspace.

connections among people, goods, and services. The

In response, we intend to assess future trends accu-

vision is a compass pointing toward the new future of

rately while executing a strategy from a global per-

a unified ANA Group, a future redefined now that we

spective on route network restructuring and greater

have passed the COVID-19 pandemic.

collaboration with other airlines. The recovery in busi-

ness demand has slowed in our domestic passenger

business. At the same time, leisure demand now

exceeds pre-COVID-19 levels. We also expect an

increased use of domestic travel by visitors to Japan

in the future. The other day, I invited an overseas

friend with whom I have been close for many years to

my hometown, Kakeroma Island in the Amami

Archipelago. He was impressed by the natural beauty

of the island, which is registered as a World Natural

Heritage site, the clean air, clear waters, and many

native species of plants and wildlife. Every region of

Japan has its own appeal. By attracting tourists,

including visitors from foreign countries, we will con-

tribute to solving rural issues such as population

decline and economic contraction. In our cargo busi-

ness, we entered into an agreement in July 2023 to

purchase all shares of Nippon Cargo Airlines (NCA)

from NYK Line. NCA is an airline specializing in cargo

transportation, operating wide-body freighters on

long-haul routes in Europe and the U.S. Combining

NCA with our own cargo business, which is strong in

China and Asia, we believe we can create an optimal

balance in our network. Although demand and unit

prices have come down from a peak when port con-

require more human resources to take on new busi-

gestion was more pronounced, the scale of interna-

nesses, and we will bolster training by selecting moti-

tional cargo revenues has increased significantly

vated and capable employees for experiences in

compared to pre-COVID-19 levels. The ANA Group

battlefields inside and outside the group. We have great

cargo business is changing its freighter network, oper-

expectations for our employees to demonstrate their true

ations, sales, and systems, which will help stabilize

value in our Non-Airline Business, serving as another

earnings and increase profits in the Air Transportation

source of competitiveness.

Business.

Expanding Our Non-Airline Business
through the Power of People
We intend to bolster the earnings base of our Non-Airline

Co-Creating an Economic Zone with Like-
Minded Others
One of the processes toward my vision is to co-create

an economic zone with our stakeholders. In terms of

Business by concentrating resources on existing core

scale, several other companies already operate large

businesses such as travel, trading, and real estate. At

economic zones. Our economic zone strategy is not

the same time, we will nurture businesses that will

necessarily to pursue scale alone, but to expand com-

become new sources of revenue, including avatars,

mercial distribution and interactions with people and

drones, metaverse, and flying cars. You may wonder if

companies that share the values of the ANA Group.

ANA Group human resources are over-specialized in the

From a base of nearly 40 million ANA Mileage Club

airline business, or whether we can monetize business

members and ANA Card members who tend to

models other than airlines. Certainly, many group

engage in high-ticket purchases, we intend to offer

employees have deep expertise in the airline business.

miles as a hook to encourage consumers to use the

But we also have a wealth of human resources from a

breadth of services we offer and fulfill the hopes and

wide variety of backgrounds and ideas. The Da Vinci

dreams of an interconnected world. We are convinced

Camp is a program under which employees, mainly from

that there is a large potential market in the process of

our current business divisions, propose businesses

creating value of the type that strengthens bonds

based on new ideas. The nearly 2,300 employees trans-

between people and offers emotional experiences. We

ferred to other companies, organizations, and municipali-

plan to expand the economic zone (market) as a place

ties during the COVID-19 pandemic received experience

to co-create unique ANA Group value with stakehold-

in fields completely different from aviation, bringing back

ers while building strong relationships of trust with

outside knowledge and experience. Of course, we

customers and partner companies.

Pursuing Sustainability from a Long-Term Perspective

Social and economic activities are finally normalizing in

pandemic forced employees to endure a difficult situa-

Japan as the government reduced COVID-19 to

tion in terms of compensation, we returned bonuses in

Category 5 under the Infectious Disease Control Law.

fiscal 2023 to a pre-COVID-19 basis, raised starting

During the three years of the COVID-19 pandemic, we

wages, and implemented a wage base increase for the

were forced to prioritize our activities in response to

first time in five years at ANA.

the situation. Now that passenger demand is recover-

To expand the scale of our Air Transportation

ing steadily and we are seeing bright spots in the

Business over the medium to long term, as well as to

Group’s return to growth, we will look to build sustain-

monetize Non-Airline Businesses, we must recruit and

ability from a long-term management perspective.

train employees to match an optimal human resources

Practicing Human Capital Management
The first topic we will address to strengthen sustain-

Transformation Council under the direct control of the

president in fiscal 2023 as a means to create human

ability is to practice human capital management. Our

resources and an organizational culture capable of

current ANA Group Corporate Strategy defines human

repeat transformations in response to changes in

resources as a materiality. Although the COVID-19

society.

portfolio. We established a new Corporate

Management MessageIssues related to labor shortages in the airline indus-

we respond promptly and appropriately to environmental

supported us throughout the COVID-19 pandemic,

which they believe with passion and conviction. I truly

try are becoming apparent in certain airport operations,

issues is likely to affect not only the competitiveness of

implementing reforms to achieve the target of ¥200

believe that the unlimited power of our employees will

such as ground handling and security inspections. For

individual airline companies but also the international

billion in operating income for fiscal 2025 as stated in

open the future of the ANA Group. We offer our full

the ANA Group to achieve sustainable growth, we must

competitiveness of the Japanese airline industry. For our

the ANA Group Corporate Strategy.

support to ensure the ideas of each individual is given

improve the attractiveness of the airline industry as a

group and for the Japanese economy, environmental

whole and secure human resources in a stable manner.

responsiveness is no longer a medium- to long-term

We will contribute to the sustainable development of

issue. By facing environmental challenges head-on, the

the airline industry by improving work environments and

ANA Group hopes to ensure our path to achieving

Rewarding the Encouragement of
Shareholders and Investors
Our shareholders and investors offered great encour-

shape, and we will lead our group toward a growth

trajectory as quickly as possible. The ANA Group

continues to take on the challenge of co-creating new

value with stakeholders, continuing to take on new

compensation, by raising productivity through innova-

carbon neutrality.

agement and advice throughout the COVID-19 pan-

challenges and Uniting the World in Wonder.

tion, and by collaborating actively with governments

and related organizations.

We respect and value people, not only our employ-

ees but also their families and everyone involved in the

supply chain who supports our businesses. Our ulti-

mate goal is the happiness of all people in and around

the ANA Group. Through the experience of the

COVID-19 pandemic, I came to realize that in the

process of achieving this goal, it is the everyday

actions of group employees that raise corporate sus-

tainability. These actions include building deep rela-

tionships of trust with a long list of stakeholders,

including customers, business partners, partner air-

lines, national and local governments, financial institu-

tions, and shareholders.

The Urgency in Responding to
Environmental Issues
The second point is accelerating our environmental

responsiveness. In October 2022, the ICAO General

Assembly tightened CORSIA*1 rules. As a result, it is an

almost certainty that member airlines will be obligated to

offset carbon emissions beginning in 2024. The ANA

Group updated our transition scenarios accordingly, and

we are implementing fuel savings through operational

improvements as one of numerous measures. However,

catching up with international expectations in the speed

of CO2 reductions through self-help efforts alone will be a

challenge. We are preparing for the use of carbon credits

to a certain extent and engaging in deeper discussions

with stakeholders, including the government and oil

wholesalers, on the use of SAF*2. SAF is the most prom-

ising future response measure, and we are consulting

with these parties to establish a system for a stable

*1 CORSIA: Carbon Offsetting and Reduction Scheme for International Aviation
*2 SAF: Sustainable aviation fuel

Accelerating Digital Transformation for
Customer and Employee Experience
The third point is fostering human resources for digital

transformation (DX).

Digital transformation is one of our most important

management foundations. We plan to collaborate and

utilize data across the ANA Group, training digital

human resources and making necessary investments.

For example, we can use data for in-flight and call

center customer service or to maximize revenues by

promoting cross-use among economic zone services.

As a measure to improve customer experience (CX),

we believe in raising the overall value of the experi-

ence, from pre-travel through post-travel, rather than

focusing on specific points of interaction, such as at

the airport and in-flight. We believe this comprehen-

sive approach will lead to enhanced competitiveness.

Our new ANA Smart Travel service model allows cus-

tomers to use smartphones in all travel scenarios,

making the air travel experience smooth and stress-

free. At the same time, automation and self-service for

related travel procedures will enhance employee expe-

rience (EX), allowing our employees to focus on ser-

vices that only people can provide. However, in terms

of DX, we feel there are many areas for improvement

compared to global competitors. These areas include

user interface (UI) and user experience (UX) design. By

accelerating DX, including the rapidly advancing area

of generative AI, we believe we will achieve business

process transformation beyond mere IT. New ideas will

increase customer convenience while improving

supply of SAF at competitive prices and quality. Whether

employee work comfort and productivity.

Building Trust with Stakeholders for Renewed Growth

External constraints continue, including extended

cost increases due to rising prices. However, we

rerouting around Russian airspace and unavoidable

intend to deepen trust with stakeholders who

demic. One of the most gratifying developments was

I ask for your continued support and encouragement.

the comments we received in response to our reduc-

tion of employee wages and bonuses during the pan-

demic. Many stakeholders were aware of the

importance of short-term performance, but asked us

to restore wages and bonuses as quickly as possible

to ensure growth over the medium to long term. The

reality was opposite, in fact, as many ANA Group

employees indicated that, even though the reduction

of wages would be painful, it was unavoidable at a

time when shareholders continued to receive no divi-

dend payments. Other feedback reflected consider-

ations of investors, who would likely want to see the

group reduce costs as much as possible to improve

performance, and who would likely react negatively to

wage increases. When we communicated the volume

of supportive feedback from shareholders and inves-

tors to one employee, she said that the kind words

motivated her to work even harder. In fiscal 2022, we

made the difficult decision to forgo dividends to priori-

tize the recovery of wages for our employees. As our

business performance has begun to improve, we hope

to resume dividends at the earliest possible time for

our shareholders who have so warmly watched and

supported the ANA Group throughout the COVID-19

pandemic.

United in Purpose for Renewed Growth
With the COVID-19 pandemic, I was reminded once

again that the shared aspirations of management and

employees are what drive our company. No matter

what the challenge, we cannot take a single step for-

ward without the help of our employees. I believe my

most important role is to unite the 40,000 ANA Group

employees around the world in purpose, setting the

stage for each employee to work with drive and

energy. My personal motto is kofu yukei (never take

shortcuts) from the Analects of Confucius. Teaching

respect for a just cause and traveling the “royal road”

in a fair and honest manner applies to the essence of

our work. I tell group employees to follow the path in

August 2023
SHIBATA Koji
President &
Chief Executive Officer

Management Message

The Source of Value Creation:
Leveraging the Power of People and the Capabilities of Our Organization

ANA’s Way, our group action guideline, carries the spirit of our founder as expressed through the concepts of Hardship Now,

Yet Hope for the Future and Wakyo (close cooperation). Our strength is the power of people, brought to the fore when our

diverse human resources practice ANA’s Way in their daily activities. Employees share the insights gained through their efforts

and challenges with their peers, leading to a cycle of new value creation as we involve others actively in the pursuit of our busi-

ness. Through this virtuous cycle, the ANA Group corporate culture of mutual interest, recognition, and collaboration across

company and job boundaries demonstrates the capabilities of our organization.

The ANA Group believes that maximizing the power of people and the capabilities of our organization is the most essential

factor in sustainable value creation. Just as an aircraft cannot be operated by a single employee alone, our business requires

staff who share the same values to cooperate and provide services while never compromising on quality. This power of people

and the capabilities of our organization create a unique synergistic effect.

Anshin, Attaka, Akaruku-genki!
(Trustworthy, Heartwarming, Energetic!)

—ANA’s Way—

Safety

Customer Orientation

Social Responsibility

Team Spirit

Endeavor

Create

Endeavor and
Endeavor and
Challenge
Challenge

Capabilities
of Our
Organization

The Power
of People

Hardship Now,
Hardship Now,
Yet Hope for
Yet Hope for
the Future
the Future

ANA’s Way

Notice
Notice

Involve
Involve

The Power of People and the Capabilities of
Our Organization:
Notice, Involve, and Create

The cornerstone of safe, high-quality services at the ANA Group is the

broad collaboration of diverse human resources across organizational

boundaries. We have created an environment in which the power of people

and the capabilities of our organization are clearly visible on a daily basis.

As an example, when flight dispatchers and operations support staff

notice weather conditions or points enroute likely to cause turbulence, they

share this information with the pilots before the flight and work with the flight

attendants on board to develop measures together for safety and security.

This flow of cross-departmental communications, cross-organizational

cooperation to solve problems, and collaboration to create the best pos-

sible service is not specific to jobs or issues. This flow is rooted deeply in

the corporate culture of the ANA Group, and it is the reason why the power

of people and the capabilities of our organization support value creation.

“Hardship Now,
Yet Hope for the Future”

“Wakyo”
(Close
Cooperation)

“Trust and love
are the threads
that weave a
beautiful world”

A Spirit Inherited from
the Time of Our Founding

With just two helicopters, ANA began operations in

1952 as Japan’s first purely commercial airline. The

words of our founder, Hardship Now, Yet Hope for the

Future, express our belief that no matter how severe

the hardship, one must not shrink, but rather believe in

a brighter future, striving, growing, and hoping for a

time when prosperity comes in leaps and bounds. As

in the past, our employees today continue to take on

all challenges with these words in their hearts.

Embracing Wakyo (close cooperation), we conduct

ourselves through genuine discussions and concerted

action to achieve our goals. This approach forms the

source of the ANA Group value.

The ANA Group Value Creation ProcessThe Value Creation Process

External Environment

Risks and Opportunities

Reinvest Expanded Capital

FY2023-25 ANA Group Corporate Strategy

1. Maximize profits of airline business

2. Expand non-airline profit domains

3. Expand the ANA Group Economic Zone

Materiality

People

Human
Resources

• Respond to labor shortages (secure human
resources supporting business operations)
• Cultivate human resources and organizations

capable of achieving change (airline and non-airline)

• Improve human-based productivity

DEI

• Pursue DEI

Human
Rights

• Fulfill our responsibility to respect human rights

throughout the supply chain

Enrich the lives of our employees and
their families, while fulfilling our responsi-
bility to respect the human rights of those
involved directly and indirectly with the
ANA Group.

Vision for 2030

New Management Vision
Uniting the World
in Wonder

Chosen and Trusted
Group Quality

Strong Relationships

with Our Stakeholders

Endeavor
Endeavor
and
and
Challenge
Challenge

• Implement transition strategies to achieve medium- and

long-term environmental goals related to CO2 reductions (SAF
procurement, use of negative emissions technologies, etc.)

Environment

• Reduce waste in resources and food

• Conserve biodiversity

We contribute to the creation of prosperous
and sustainable societies, providing environ-
mentally friendly means of transportation,
while sharing our concern for the earth with
people around the world.

Create
Create

Capabilities
of Our
Organization

The Power
of People

Hardship Now,
Hardship Now,
Yet Hope for
Yet Hope for
the Future
the Future

Involve
Involve

ANA’s Way

Notice
Notice

Regional
Revitalization

• Innovate to resolve social issues

• Regional revitalization through social contribution and

resolving social issues

We will pursue our corporate activities while
placing importance on our relationships with
local communities. At the same time, we
strive to expand interactions among people
and revitalize local economies.

Create Social Value and Economic Value in Parallel

Safety

Human Capital

Digital Transformation (DX)

Mission Statement

Improve Engagement

S
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p
o
r
a
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V
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Driven by the power of people and the capabilities of our organization, the ANA Group continues to execute strategies while

In the process of conducting business while fulfilling our responsibilities as social and transportation infrastructure, we build

maintaining safety, human capital, and digital transformation (DX) as the foundation of management. We pursue constant

strong relationships with stakeholders to become a trusted business of choice. These stakeholders include customers, employ-

improvement in quality, including safety, on-time operations, and comfortable services. To this end, we bring the specialized

ees, local communities, the Star Alliance, partner companies, and shareholders.

skills and expertise of our diverse human resources to bear, honed and refined constantly on the front lines. At the same time,

The capitals linking these qualities and relationships will evolve our businesses further through repeated growth and reinvest-

we continue to steadily execute the ANA Group Corporate Strategy, which incorporates materialities related to people (human

ment. At the same time, the confidence and conviction gained through the process of value creation and relationships with

resources, human rights, DEI), the environment, and regional revitalization.

stakeholders will improve the engagement of Group employees and amplify their mindsets to take the next action. In this way,

we will accelerate the value creation cycle at the ANA Group.

The ANA Group Value Creation Process

Creating Social Value and Economic Value in Parallel

For the ANA Group to create value sustainably and continue to be the preferred choice of customers, we must

address environmental and social issues from a global perspective, while at the same time executing business and

financial strategies. To this end, we pursue our management strategy while clarifying the specific forms and goals for

each materiality that guides ESG management. And by creating social value and economic value simultaneously, we

will achieve our Management Vision for the year 2030, contributing to the United Nations Sustainable Development

Goals (SDGs), and delivering the sustainable enhancement of corporate value.

The Value Creation Process

(P.12-13)

Capabilities
Capabilities
of Our Organization
of Our Organization

The Power of
The Power of
People
People

Reaching toward the Ideal State of the ANA Group in
2030 as the Path for Increased Corporate Value

The new ANA Group Management Vision for 2030 is Uniting the World in Wonder: ANA Inspires Our Employees,

Customers, and Society to Explore Endless Possibilities with Diverse Connections that Begin in the Sky. The ANA

Group and our DNA to Challenge continue to evolve toward the year 2030, and this vision expresses our desire to fill

the world with wonder and joy by making new challenges and creating possibilities together with our stakeholders

around the world.

The ANA Group of today was founded in the airline business. And we will continue to create new encounters and

connections among people, goods, and services, growing our business through next-generation mobility, an expanding

economic sphere touching daily lives, and the challenge to create new models through cross-border open innovation.

This new Management Vision, created through discussions among the 40,000 ANA Group employees about their

future aspirations, also provides a roadmap for enhancing corporate value. We will achieve sustainable growth through

the collective efforts of the ANA Group, each employee sharing this belief, strengthening in unity, and pursuing the

FY2023-25 ANA Group Corporate Strategy tirelessly.

Growing and Reinvesting the ANA Group Capitals

Among the diverse capitals created through our unique business model, our critical strengths lie in chosen and

trusted group quality and strong relationships with stakeholders. We view these strengths as distinctive capitals in

executing our strategy and moving along the value creation cycle.

ANA Group Capitals to Create Social Value and Economic Value in Parallel

Capital

Item

Examples

Safety

Number of participants in education and training at the ANA Group Safety Education Center (ASEC)

34,443 (cumulative over the past three years)

On-time

On-time arrival rate 89.8% (ANA Brand, 2022)

Performance

CIRIUM

Global Network No.1 / Asia Pacific Network No.1

Service Quality

SKYTRAX

5-STAR rating for 10 consecutive years (2022)

No.1 in in three categories (2023)

- World’s Best Airport Services

- World’s Cleanest Airline

- Best Airline Staff Service in Asia

In-service rate

95.0% (FY2022)

Optimal Fleet

Configuration

Fuel-efficient aircraft ratio: 77.0% (as of March 2023)

Number of routes: 53 international routes / 142 domestic routes (ANA Brand)

Route Network

Number of JV partner airlines: 4 / Number of code-share partners: 30

Number of Star Alliance member airlines: 26 (as of March 2023)

Relationships with

Service Areas

ANA Mileage Club

(AMC)

Comprehensive cooperative agreements with local governments: 12 prefectures (as of March 2023)

AMC members: 40 million (as of March 2023)

Employee

ANA’s Way Survey (ANA Group Employee Engagement Survey)

Engagement

Avg. score for all questions: 3.96/5.0 points (FY2022)

Trust and Support

from Society

Number of customer comments (including complaints): 91,632 (FY2022)

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The ANA Group Value Creation Process

Business Strategy

We finalized the FY2023-25 ANA Group Corporate Strategy in February 2023.

Amid a drastically changing environment surrounding our industry,

we intend to accelerate the transformation of our business model to

achieve our new management vision, Uniting the World in Wonder,

and enhance corporate value even further.

FY2023-25 ANA Group Corporate Strategy

Role of the ANA Group Corporate Strategy

FY2023-25 ANA Group Corporate Strategy Themes and Strategies

FY2020-22

FY2023-25

Under COVID-19

With-COVID-19

Theme

October 2020 Business Structure Reform
Establish a resilient
business structure

February 2023 Mid-Term Corporate Strategy
Build basis for growth
Change to achieve our 2030 vision

Business Structure Reform

FY2023-25 Corporate Strategy

1) Reduce resources

1) Maximize profits of airline business

Business

2) Transform the business model of

2) Expand non-airline profit domains

Air Transportation Business

3) Utilize customer data assets

3) Expand the ANA Group Economic Zone

Finance

ESG

Cash on
hand

Secure

Capital
expenditures

Control

Shrink

CAPEX

Environment

Respond to climate change, Reduce CO2 emissions

P.60

People / Regional
Revitalization

Human capital, human rights, solutions to social issues P.48

Governance

Appropriate information disclosure

P.90

FY2026 and beyond

Post-COVID-19

Corporate Value
Enhancement through
Sustainable Growth

Generating profits
exceeding
pre-COVID levels

Achieve new
management vision

Build robust
financial base

ESG Management
Initiatives and Target
Achievement

1. Management Theme

Business Strategy
Three Pillars

1) Optimize multi-brand and Expand cargo to maximize airline business profit
2) Expand profit domains unconnected to airline by appropriate resource allocation
3) Expand ANA Economic Zone for sustainable group growth

2. Strategy Big Picture

Air Transportation

Launch in February 2024

(2) Expand cargo

(1) Optimize multi-brand

1) Maximize

profit in airline
business

Excursion

Gate App

New EC Mall

Mobile payments

Excursion

Non-Air

(3) Appropriate resource allocation

Core business

Strengthen business

Create business /
Invest

2) Expand non-air
profit domains

AMC members
Approx. 40 million

(4) Establish ANA Economic Zone

3) Group’s sustain-

able growth

As the COVID-19 pandemic comes to an end with a clear

Amid these developments, we view the period from fiscal

Our strategy consists of three strategic business pillars. In

In the Non-Airline Business, we intend to create new

recovery in air travel demand, we are now finally able to

2023 through fiscal 2025 as a time of transformation to

the Air Transportation Business, we will optimize ANA,

models in response to society, expanding revenue domains

envision the future of the ANA Group, formulating a concrete

solidify our footing for a return to growth and to achieve our

Peach, and AirJapan brand operations while we expand the

linked to the Non-Airline Business by allocating resources

plan toward this vision. These plans mark the first time in five

vision for 2030. While growing revenues around our Air

cargo business under ANA to maximize profits.

optimally according to business type.

years we formulated a medium- to long-term vision for a

Transportation Business, we plan to strengthen our Non-

return to growth in the post-COVID-19 era.

Airline Business, encouraging customers to use services

In October 2020, we announced a three-pillar plan for

across our airline and non-airline businesses.

Business Structure Reform in anticipation of the prolonged

The period following fiscal 2026 will be a phase in which

impact of COVID-19: (1) Reduce the scale of our Air

we return to full-scale growth as we aim to build a strong

Transportation Business temporarily; (2) Transform the busi-

financial foundation and generate profits exceeding pre-

ness model of Air Transportation Business; and (3) Utilize

COVID-19 levels.

customer data assets. On the financial front, the ANA Group

We will engage in ESG management based on a manage-

secured liquidity on hand and curbed capital expenditures.

ment foundation of safety, human capital, and digital trans-

Amid the easing of border controls and domestic travel

formation (DX) to enhance sustainable corporate value

restrictions in many countries, in fiscal 2022 we returned to

improvements through the simultaneous creation of social

profitability for the first time in three fiscal years.

and economic value.

Further, we intend to expand the ANA Economic Zone for

sustainable growth, as we execute a platform strategy

leveraging our entire customer base, which is a competitive

advantage of an airline group.

Business Strategy

FY2023-25 ANA Group Corporate Strategy

Air Transportation Business

Portfolio

1. Purpose

1) Expand market share and profits by leveraging three brands: ANA, Peach, AirJapan
2) Adjust routes, timetables, number of flights, etc., flexibly across brands to maximize profits
3) Increase profitability through marketing tie-ups, interconnectivity improvement among brands, collaborations, and the consolidation of functions

2. Positioning by Brand

High

Full

Fare

Lineup

P
r
e
m
u
m

L
C
C

H
y
b
r
i
d

Full lineup of routes and services at stable quality

Inspiration of Japan

Pleasant service with no waste
Fly Thoughtful

A bridge to Asia, to deepen exchanges
of people, goods & services
Live!

Low

Simple

Short-range

Mid-range

Long-range

Domestic

International

Benefit of optimizing multi-brand

1) Marketing/sales partnerships

- Share data and knowledge

- Reservation screen transition

2) Interconnectivity improvement

among brands

- Cover various needs by three

different brands

3) Collaboration and

consolidation of functions

- Aircraft procurement,

Maintenance, etc.

Improve market share
Expand profit

Demand and Fleet Strategy

Air Transport Demand

FY2023-25

Fleet Strategy

Domestic
Routes

[Forecast] Increased demand, mainly from leisure and inbound to Japan

Business demand will see slowdown in the pace of recovery

International
Routes

[Forecast] Gradual recovery in leisure from Japan

Increase in total demand above pre-COVID-19 levels
(including trilateral demand)

1) Expand the number of fleet with business scale
2) Pursue social and economic value in fleet strategy

(Secure resource for growth, update fleet, consider the environment)

No. of Aircraft*3
Group Total

300

268

290
–295

Above
Pre-COVID-19

ANA Group Demand Assumptions*1
Pre-COVID-19
(Jan-Dec 2019) = 100

End of
FY2022

95%

FY2023 (Avg.)

95%–100%

Domestic ANA+Peach

70%

55%

ANA International*2

Optimize Air Transportation
Business Portfolio

Overall Market Demand Forecast

FY2025
(Avg.)

100%

Seek to increase market share
in the demand recovery stage
for share in markets already
superior to our competitors.

(End of FY)

Wide-Body

Mid-Body

Narrow-Body

Prop

267

236

250
~255

33
FY2019

32
FY2022
(Forecast)

35~40

FY2025
(Plan)

106

111

103

108

FY2030
(Image)

(FY)

Approx.110

Approx.115

Increase mainly
in mid- and
narrow-body

*1 We calculated results and forecast including award ticket usage to reflect the adop-

tion of Accounting Standard for Revenue Recognition (vs. CY2019 results updated to
reflect the new standard)

*2 Including AirJapan

*3 Owned aircraft, excluding retired aircraft, aircraft awaiting sale or lease, and aircraft in

storage maintenance

Aiming to increase market share and expand profits, we

At the same time, we intend to adjust service routes,

Next, let’s address our forecast of passenger demand over

utilizing a network strategy accounting for the balance

intend to develop the three brands in our Air Transportation

schedules, the number of flights, etc., collaborate in aircraft

the medium term.

between supply and demand.

Business portfolio, ANA, Peach, and AirJapan, to respond

procurement and maintenance, and pursue greater collabo-

In the Domestic Passenger Business, passenger demand

During the COVID-19 pandemic, we reduced our fleet tempo-

to changing needs and behaviors in the wake of the COVID-

ration and functional integration among brands to increase

is expected to increase, mainly in leisure and inbound travel.

rarily as part of our fleet strategy, mainly in wide-body aircraft.

19 pandemic.

profitability.

Each of these three brands will play a role according to

differences in fares, product lineup, and route distances,

while we execute the brand concept of each company in a

way that covers demand globally.

We will also use data- and knowledge-sharing, reserva-

tion screen transitions, and other coordination between

marketing and sales to improve the mobility between our

brands.

We assume that the pace of recovery in business demand

Beginning with fiscal 2023, we intend to increase our fleet grad-

will be slower than in the past. But we also expect passenger

ually as an important resource supporting growth. We plan to

volume for ANA and Peach combined in fiscal 2023 will

have more than 290 aircraft in our fleet by fiscal 2025 and

recover, averaging 95% to 100% of pre-COVID-19 levels.

exceed the number of aircraft pre-COVID-19 by fiscal 2030.

Leisure travel demand from Japan should recover gradually to

Further, the ratio of mid- and narrow-body aircraft will rise,

increase international passenger demand, while we expect overall

and we expect to have more than 100 Boeing 787 series

demand, including trilateral traffic, to rise above pre-COVID-19

aircraft in service by fiscal 2030. As we strengthen resource

levels. In fiscal 2023, passenger demand should recover to

allocation to international routes, which represent an area of

around 70% of pre-COVID levels on a fiscal-year average basis.

growth, we will also pursue social and economic value in

Both domestic and international routes are entering a

parallel through our fleet strategy, increasing the share of

stage of demand recovery. We will seek to increase market

fuel-efficient aircraft and seeking to employ other environ-

share in areas where we are ahead of the competition,

mental measures.

Business Strategy

FY2023-25 ANA Group Corporate Strategy

Air Transportation Business

Passenger Business Strategy

Cargo Business Strategy

International Passenger Business

Domestic Passenger Business

International Cargo Business

ASK

(FY2019 ASK = 100)

ASK

(FY2019 ASK = 100)

ATK

(FY2019 ATK = 100)

100

100
(Standard)

Approx. 80

100

100
(Standard)

Approx. 105

Over 100

Approx. 105

2019

2020

2021

2022

2023

2025

(FY)

2019

2020

2021

2022

2023

2025

(FY)

* ANA Group total

Belly + Freighters

Freighter Only

Approx. 95

Approx. 110

Approx. 30

100

100
(Standard)

2019

2020

2021

2022

2023

2025

(FY)

Target Area by Brand

ANA Locations
Peach Locations

Areas covered through alliances
(joint ventures, code-share, etc.)

Asia /
China

Belly
many

Mid-freighter

Japan

Belly
small

Wide-freighter

North
America

1) Pursue structure reform to generate profits
• Maximize cargo revenue by capturing growing Asia–North

America / Europe transportation demand and utilizing

freighters to handle oversize cargo, etc.

2) Leverage the strength of combination carrier
• Optimize network balance between belly and freighter

Expand profitability by adjusting supply according to

demand trends

Assign roles of belly and freighter

Belly

• Frequent flights in small-mid markets

• Fresh food, pharmaceuticals, small items, etc.

• Supplement belly in mid-large markets

Freighter

• Oversize and special cargo

Over the medium to long term, we will recover capacity and meet

In our Domestic Passenger Business, ANA and Peach will

To maintain the high profitability of the Cargo Business

commercial product transport to take advantage of the

the wide increase in post-COVID-19 demand, organizing and

continue to work cooperatively to develop optimized flight sched-

established during the COVID-19 pandemic, we will move

unique characteristics of both passenger aircraft and

strengthening our route network to place our International

ules, helping build a stable business foundation for the Group.

forward with structural reform to secure earnings capacity,

freighters.

Passenger Business on a growth trajectory.

During the period covered by our corporate strategy, we plan to

while leveraging the strengths of ANA as a combination car-

On July 10, 2023, we executed a final agreement with NYK

Indexing ASK results in fiscal 2019 to 100, we plan to raise

maintain ASK at roughly pre-COVID-19 levels.

rier to expand profits through the optimization of space

Line to acquire all Nippon Cargo Airlines (NCA) shares from

ASK to about 80 in fiscal 2023 and 105 in fiscal 2025.

For its part, ANA will capture a broad range of customers,

between our passenger aircraft and freighter networks,

NYK. We view our cargo business in the post-COVID-19 era

ANA will resume and increase flights, mainly on trunk routes, to

including business demand, focusing on trunk routes. ANA will

responding flexibly to supply in line with demand trends. To

as an important means of sustainable growth, and we intend

restore its global route network.

also expand the availability of ANA Smart Travel to improve cus-

maximize revenue, we intend to capture growing demand for

to pursue integration synergies to ensure stable profit

Peach will improve profitability by specializing in short- and

tomer convenience and employee productivity.

transportation between Asia and Europe, while also covering

generation.

medium-haul routes as before COVID-19, as well as by improving

Peach will concentrate resources on highly profitable routes,

demand for oversize cargo, etc., using freighters.

aircraft and crew utilization.

mainly to/from Kansai and Narita. The brand will adjust capacity

Specific measures here include consolidating freighters to

We intend to launch AirJapan as a new ANA Group brand in

flexibly as international business recovers.

February 2024. Meanwhile, we will secure a new revenue source

from visitors to Japan on medium-haul routes, mainly to/from

Narita.

routes to/from Narita, operating wide-body freighters to

capacity, concluding multi-year contracts, and improving

operational efficiencies. In addition, we will strive to optimize

the balance of supply among service areas, incorporate

Business Strategy

FY2023-25 ANA Group Corporate Strategy

Non-Airlines

1. Purpose

1) Optimize resource allocation and maximize earnings thorough analysis based on return on investment
2) Develop a framework for business expansion
3) Create new business in response to change in society, and develop a framework to support them

2. Categorization and Direction

Business

Direction

1) Core Businesses

2) Focus Business

3) Bus. Creation, Investment, Etc.

Travel, Trading,
Logistics,
ANA Economic Zone

Grow into Core
Business

Regional Revitalization,
Real Estate, Training,
Building Facilities, Etc.

Commercialized

Avatar
Metaverse

Considering

Air Mobility
Drone
Space

Business Expansion
Driver of Revenue

Generate Stable Profits
Pursue Structure Reform

Pursue Investment and
Commercialization

Concentrate Resources

Speedy Management, Delegation of Authority, Expanded Alliances

Optimize Resources

Achieve growth strategy
Develop and execute plan

Total Major 7* Non-Air

Companies

FY2018

FY2025 (Target)

Operating Revenues

Approx. ¥360.0 Billion

Approx. ¥400.0 Billion

Operating Income

¥8.5 Billion

¥24.0 Billion

Operating Income
Margin

Approx. 2.4%

Approx. 6%

* ANA X, ALL NIPPON AIRWAYS Trading, OCS, ANA Akindo,

ANA FACILITIES, ANA Business Solutions,
ANA SKY BUILDING SERVICE

ANA Economic Zone: Creating a World in Which People Live in
a Mileage-Based Ecosystem

Platform strategy leveraging our customer base

Purpose

Realize the world of living with mileage ecosystem in wonder, expand ANA Economic Zone

1) Establish Systems

2) Enhance Content

ANA Mileage Club App
(October 20, 2022 update)

New ANA Pay
(May 23, 2023 release)

New EC Mall “ANA Mall”
(January 31, 2023 release)

Initiatives
(Recent)

Through
FY2025

Through
FY2030

xpand chances for
both mileage
accumulation &
redemption

Redesign as gateway app
Expand into many mini-apps

Charge through a
variety of means

Original ANA Group products
Attractive lineups by external partnership

Evolve into a Super App

Diversify recharge & payment

Develop EC Mall to expand ANA Economic Zone

Fully utilize our strengths of the airline group

AMC* Members Approx. 40 million

Award tickets
Low redemption rate

Customer data
Location prediction

In Wonder
Extraordinary experiences

ANA customer base
High purchasing power

Comprehensive transportation
From everyday to extraordinary

Contribute ¥40.0 billion to revenue by FY2025
Platform strategy contributes to value creation

* AMC: ANA Mileage Club

Each ANA Group company is involved in the Non-Airline

businesses to generate stable profits. In addition, we intend

Our platform strategy is designed to leverage our customer

The ANA Mall offers an attractive assortment of goods

Business. Here, we intend to allocate management

to invest in and commercialize new models in response to

base. Working from this platform, we plan to expand the

from the Group’s own merchandise, as well as merchandise

resources appropriately and conduct management by busi-

changes in society (air mobility, drones, etc.) to accelerate

ANA Economic Zone quickly to create a world in which

from external partners. We will expand opportunities to use

ness model, aiming for continued profit maximization.

our path along growth strategies and business plans in the

people live in a mileage-based ecosystem.

miles further by increasing the number of shops and ANA

To this end, we will strengthen our framework to support

future.

In October 2022, we updated the ANA Mileage Club app

products.

business growth through a new management structure

By allocating resources optimally throughout the Non-

as part of this platform, serving as a gateway to the various

We aim to increase operating revenues by approximately

distinct from the Air Transportation Business. Under this

Airline Business, we target ¥400 billion in operating rev-

services for better daily living that the ANA Group offers.

¥40 billion in fiscal 2025 and establish miles as a pillar of

structure, we will train and assign human resources, evalu-

enues and ¥24 billion in operating income among seven

One of the core features of the app is the new ANA Pay,

Group earnings in the medium term. To this end, we will

ating businesses in detail based on return on investment.

major companies in this category in fiscal 2025.

released in May 2023. ANA Pay allows credit card payments

provide mileage services that meet the needs of individual

The Travel Services, Trade and Retail, and other core

businesses are targets for expansion and designation as

earnings drivers. On the other hand, we are pursuing struc-

tural reform in regional revitalization and real estate

and integrates with Apple Pay for a variety of convenient

customer lifestyles and encourage customers to use both

recharging and payment methods. We made the functions

Non-Airline and Air Transportation Businesses through

more intuitive for customers and now provide more opportu-

mileage.

nities to earn and use miles in daily life.

Business Strategy
FY2023-25 ANA Group Corporate Strategy

DX Strategy

Financial Strategy

Consolidated Operating Revenues and Operating Income

Transform business and create value through digital and data across the group

1) Create new value in the real-world transportation of people & goods
2) Expand digital and virtual business, adapting to changes in society and the times
3) Strengthen ability to innovate by groupwide data management, hiring and training digital human resources

DX-Based Processes and Initiatives

Specific Initiatives

IT Investment

IT investment amount
FY2023-25 1.5 times
(vs.FY2020-22)

Human Resources Development

Data Management

Digital talent
FY2025 1.6 times
(vs.FY2022)

Amount of usable data
FY2025 4 times
(vs.FY2022)

1) ANA Smart Travel

Business efficiency

• Complete travel process via smartphone
• Remote customer support via AI & robotics technologies

2) 1to1 Marketing

Maximize income

• Enhanced personalized services (ex. meal pre-order)
• Service proposals by customer characteristics

3) Virtual business

Expansion of business

• Avatar business (avatarin)
• Metaverse business (ANA NEO)

Key topics for promoting transformation

Create value through employee, customer satisfaction

• Create group synergies by digital & data

• Grow data-driven management

For employees

Offer smart work styles

For customers

Offer new experience value

1. Operating Revenues

(Consolidated)

FY2022
(Results)

Air Transportation
Non-Air
(Before adjustments)

23%

¥1,707.4
Billion

77%

+15%

2. Operating Income by Segment

Operating Income Margin
(%)

Bubble Size: Operating Income (Before Adjustment)

10.0

5.0

Airline

¥124.1
Billion

Trade & Retail

Airline Related

0.0

Travel

3.5

2.3
-2

FY2023
(Targets)

24%

¥1,970.0
Billion

76%

+18%

FY2025
(Targets)

Non-Air

24%

Operating Income in Air Transportation Business
1.5 times
(FY2022 FY2025)

¥134.0
Billion

4.0
4.0
8.5

¥2,320.0
Billion

76%

Air Transportation
Business

¥181.0
Billion

¥10.0 Billion

¥9.5 Billion
¥8.0 Billion

FY2022

FY2023

FY2025

We intend to use digital technologies and data to transform

human resources, while supporting the reskilling and devel-

For fiscal 2022, consolidated operating revenues increased

We intend to allocate management resources appropri-

our businesses, creating new value across the ANA Group.

opment of all employees.

67% year on year, the result of a steady recovery in pas-

ately in the Non-Airline Business according to business

Our vision of DX aims to create new value in the real-world

Through these efforts, we intend to improve customer

senger demand, particularly in our Air Transportation

model, aiming to grow sales and profits across all segments.

movement of people and goods, expanding digital and

and employee satisfaction, offering new experience value to

Business. Supported by this recovery, we expect the ANA

virtual businesses that adapt to changes in society and the

our customers and smart work styles to our employees to

Group to continue to grow over the next three years, target-

times. Today, we are building a groupwide data manage-

solidify the foundation for value creation in the ANA Group.

ing sales of ¥2.32 trillion by fiscal 2025.

ment system and securing and developing digital human

resources to serve as the basis for this expansion.

The ANA Group is developing BlueLake as a group data

lake to serve as cross-organizational data infrastructure to

strengthen data management and leverage the data owned

by our businesses. Meanwhile, we focus on recruiting digital

By segment, our operating income target for the Air

Transportation Business is to exceed ¥180 billion in fiscal

2025. This target is 1.1 times higher than fiscal 2018, when

we posted record profits, and more than 1.5 times higher

than our fiscal 2022 results. At the same time, we aim for

an operating income margin in excess of 10%.

Business StrategyFY2023-25 ANA Group Corporate Strategy

Financial Strategy

Cash Flow and Capital Expenditures

Management Resource Allocation and Balance Sheet

1) Identify investments essential to return to growth; FY2023-2025 avg. ¥270 billion / fiscal year
2) Emphasize financial discipline and generate free cash flow while controlling CAPEX

1. Cash Flow Plan * Graph shows FY Average

2. Target and Level of Capital Expenditures

FY2020-21
(Results)

FY2022
(Results)

FY2023-25
(Targets)

(¥ Billion)
600

400

200

-200

a) Aircraft

• Medium- to long-term growth capital for post-COVID

b) Digitalization and labor savings

• Improve services to meet contactless needs
• Enhance human-based productivity, strengthen cost

competitiveness

CAPEX Plan

FY2020-22
(FY Avg.)

FY2023-25
(FY Avg.)

¥80.0 Billion

¥65.0 Billion

¥150.0 Billion

¥120.0 Billion

Approx.¥145.0 Billion

Approx.¥270.0 Billion*2

Fleet-related

Other

Total

Cash flows from operating activities
Cash flows from investing activities*1
Substantial free cash flow

*1 Not including time negotiable deposits of

more than three months, etc.

Substantial Free Cash Flow
FY2023-25 (3 years)
Total ¥220.0 Billion

*2 Due to the postponement of certain aircraft receipts, investments scheduled for

FY2022 will be delayed until FY2023 or later.
We expect the average annual investment between FY2023 and FY2025 to
increase from ¥250 billion per year, as disclosed on Oct. 31, 2022. However
total investments between FY2020 and FY2025 (six years) will be within the
range of our original plan.

1. Management Resource Allocation

FY2020-22

FY2023-25

FY2026 and beyond

Shareholder
Returns

Growth
Investments

Financial
Platform

2. Balance Sheet

(¥ Billion)

Resume dividends

Emphasize
shareholder returns

EPS to
Pre-COVID-19 level

Limit capital expenditures

Growth investments essential for the future

Investment for full-scale growth

Restore employee wages

Return to profitability

Turnaround in consolidated retained earnings

Obtained A credit rating

Improve capital efficiency

in parallel

Improve financial base

Strengthen financial base

End of FY2023 (Results)

End of FY2025 (Image)

Liquidity on hand
1,183.7

Total assets

Equity ratio

Interest-bearing
debt
1,607.9

Shareholders’ equity
862.4

¥3,366.7 Billion

25.7%

Liquidity on hand
700.0

Interest-bearing debt
1,100.0

Shareholders’ equity
1,100.0

Approx. ¥3,000.0 Billion

Approx. 37%

[Mid-Term Direction]

a) Reduce total assets
- Liquidity on hand:
¥500 Billion

b) Accumulate equity capital

- Equity ratio to 45%

* Excluding equity valuation of

subordinated loans

The ANA Group target for the three years between fiscal

and we plan to secure stable free cash flow over the same

Our allocation of management resources will change in

to increase shareholder returns over the medium to long

2023 and fiscal 2025 is to secure substantial free cash flow

period.

conjunction with advancements in our businesses and rising

term as we strive for a net positive balance in consolidated

totaling ¥220.0 billion.

We plan to make capital expenditures at an annual aver-

levels of free cash flow as we move through the stages of

retained earnings and a stronger credit rating.

While curbing investment during the COVID-19 pandemic,

age of roughly ¥270.0 billion. Emphasizing financial disci-

the business management cycle.

We will continue to repay interest-bearing debt to stream-

we now intend to make the necessary capital expenditures

pline, the ANA Group will invest actively in digital

During the period of this strategy, we intend to resume

line our balance sheet. At the same time, we will accumu-

to prepare for a stage of full-scale growth. We expect

technologies based on DX strategies and environmental

dividend payments, while making investments essential for

late profit steadily and bolster our financial footing with

EBITDA during this period to exceed capital expenditures,

measures exclusive of those related to aircraft.

future growth and improving our financial footing. Our first

respect to shareholders’ equity.

priority is restoring wages to employees. But we also intend

Business StrategyFY2023-25 ANA Group Corporate Strategy

Value Creation Goals

1. Value Creation Goals

FY2022

FY2023

FY2025

FY2030 target level

Operating Revenues

¥1,707.4 Billion

¥1,970.0 Billion

¥2,320.0 Billion

Operating Income

¥120.0 Billion

¥140.0 Billion

¥200.0 Billion

Net Income

¥89.4 Billion

¥80.0 Billion

¥122.0 Billion

Operating Income
Margin

ROA

ROE

7.0%

3.7%

10.8%

7.1%

8.6%

6–7%

11–12%

EBITDA

¥264.3 Billion

¥283.0 Billion

¥357.0 Billion

Achieve profitability and

financial strength as a

global top-tier company

Over 10%

Over 8%

Over 12%

EPS

¥190.24

Approx. ¥170.09

Approx. ¥260

Above pre-COVID-19 level

2. Operating Revenues and Operating Income

(¥ Billion)

2,500

2.000

Operating Revenues

1,707.4

1,970.0

2,320.0

Re-enter a stage of
full-scale growth

1,500

200

100

Operating Income

120.0

140.0

200.0

FY2022

FY2025

FY2023

- FY2030

Next, let’s look at our value-creation goals.

shift back to a stage of full-scale growth, aiming to be a global

In fiscal 2025, we aim to achieve record-high operating

top-tier company in terms of profitability and financial strength.

income of ¥200.0 billion and net income of ¥122.0 billion by

The ANA Group will continue toward a path returning to

recovering capacity to roughly pre-COVID-19 levels.

growth, responding agilely to changes in the business

Fiscal 2030 is the target year for achieving our new man-

environment.

agement vision. Leading up to this target year, we intend to

CFO Message

We will work step by step to restore
earnings per share (EPS) to levels above
the period before the COVID-19 pandemic.

NAKAHORI Kimihiro

Executive Vice President

Group Chief Financial Officer (CFO)

During the COVID-19 pandemic, we accessed every

We are preparing to prepay the ¥400 billion in sub-

possible means for finance to survive the outflow of

ordinated loans raised during the COVID-19 pandemic

funds and damage to our capital during fiscal years

beginning in fiscal 2025. To this end, we have main-

2020 and 2021. At the same time, we did our utmost

tained liquidity on hand in excess of ¥1 trillion. We

to protect the jobs of the ANA Group employees, to

estimate that the appropriate level of cash on hand for

pursue cost structure reforms, and to control invest-

the post-COVID-19 profit growth phase to be ¥500

ments. Our ability to generate cash recovered gradu-

billion, and we intend to reduce liquidity on hand in

ally over fiscal 2022, and we have more liquidity on

stages to this level. During the fiscal years 2026

hand than anticipated. Every day, we felt the support

through 2030, our aim will be to establish a strong

and expectations for the future of the ANA Group from

financial base capable of withstanding another major

various stakeholders outside our organization.

pandemic. Here, we target a capital adequacy ratio of

As we achieve a recovery in performance and shift

about 45%, while we plan to reduce total assets in

to a growth trajectory toward the year 2030, I believe

consideration of asset efficiency. The ANA Group

my task as CFO is to increase profitability to pre-

intends to pursue profit growth through improved

COVID-19 levels as quickly as possible. We will tackle

profitability and higher capital and asset efficiencies in

this task in two phases.

equal measure as we strive to achieve sustainable and

Given the impact of the COVID-19 pandemic on

stable shareholder returns supported by a strong

business performance, we re-examined the impact of

balance sheet. Our target for ROA and ROE is a mini-

pandemic risk on Group businesses. Here, we reaf-

mum 8% and 12%, respectively, and we intend to

firmed the need to build a greater risk buffer for busi-

meet the expectations of our shareholders by ensuring

ness continuity. Therefore, our priority for fiscal years

that EPS exceeds pre-COVID-19 levels.

2023 through 2025 will be to restore our financial

Last, I want to state that I am committed to fulfilling

foundation. Specifically, we will build equity capital

my responsibilities as CFO by supporting the parallel

through profit accumulation, repaying interest-bearing

creation of social value and economic value. We will

debt using free cash flow and cash on hand. At the

accomplish this goal through the appropriate alloca-

same time, we will practice balance sheet manage-

tion of management resources in addressing material-

ment with the goal of achieving an equity ratio of 40%

ity at the core of ESG management while we aim to

or more. In addition, we aim to re-acquire an A credit

maximize long-term corporate and shareholder value.

rating, which will ensure flexibility in financing and

Through appropriate investor relations activities, the

prepare us to invest in full-scale growth beginning in

ANA Group will continue to communicate our progress

fiscal 2026.

and the direction of these efforts to investors world-

wide, not only in terms of financial capital but also in

terms of non-financial capital.

Business Strategy
Business Strategy

Air Transportation Business

Strengthening Our Wings during

the Pandemic,

Ready to Go on the Offensive and

Take Flight for Growth

The Air Transportation Business posted operating revenues of ¥1,539.4 billion, up 73.9% year on

year, and operating income of ¥124.1 billion, compared with an operating loss of ¥162.9 billion

in the previous fiscal year. This performance was the result of expanding capacity flexibly while

focusing on profitability and capturing recovering passenger demand.

In fiscal 2023, we aim to expand our top line, focusing on the International Passenger Business and

targeting operating revenues of ¥1,764.0 billion and operating income of ¥134.0 billion.

ANA International Passenger Business

Maximizing Revenues by Recovering Capacity Flexibly in Response to Demand Trends

Fiscal 2022 in Review
We increased the number of flights during the first half of the

We will continue to capture growing passenger demand by

taking advantage of arrival and departure slots, particularly

year, mainly on routes to and from Narita, to capture business

at Haneda Airport.

demand and demand for connections between North America

and Asia, which began recovering ahead of others. In line with

this recovery in passenger demand, we shifted cargo flights

ANA International Passenger Business Results

that had been operated using passenger aircraft to passenger

flights, while controlling increases in operating costs as ASK

Revenues

ASK

RPK

(Index) Fiscal 2018 = 100

Member of the Board of Directors ANA HOLDINGS INC.

President & Chief Executive Officer ALL NIPPON AIRWAYS CO., LTD.

INOUE Shinichi

recovered. In September, entry restrictions were eased in

Japan, and business demand from Japan and demand for

inbound travel to Japan began to recover. On October 31, we

introduced the winter schedule, expanding capacity signifi-

cantly, mainly on North American and Asian routes where

demand is recovering quickly. We also expanded the scale of

operations on routes to and from Haneda, including additional

Fiscal 2023 is a critical year in the FY2023-25 ANA Group

for a 10th consecutive year. We continue to maximize CX

flights on the Haneda–Delhi and Haneda–Sydney routes

Corporate Strategy, as it is the first year for us to recover in

value through smooth, stress-free travel that integrates

beginning in January 2023.

the wake of the COVID-19 pandemic and build a foothold

people and digital technology centered on high-quality ser-

for growth. ANA is responding flexibly to the rapidly chang-

vice. At the same time, we are accelerating automation and

ing external environment and diversifying customer needs,

shifting to self-service operations, building a competitive

while aiming to improve profitability in both the passenger

operational structure and improving productivity. We pursue

and cargo business. We will accelerate our efforts to return

ESG initiatives and contribute to the creation of sustainable

to a robust growth vector in fiscal 2026 and beyond, striv-

societies through green transformation (GX) and regional

ing to achieve the new group management vision.

revitalization, making use of sustainable aviation fuel (SAF)

In terms of sales and services, we added a Quick & Light

Meal and a No Thank You Option (decline of in-flight meal) to

our international in-flight meal pre-order service beginning with

flights departing on March 31, 2023, providing passengers

with more freedom and comfort during their in-flight time.

These options also contribute to less food loss on board.

As a result, passenger numbers for the ANA International

125

100

54
52

2018

2019

2020

2021

2022

(FY)

The long days of the COVID-19 pandemic are finally in

and new technologies. The teamwork that is characteristic of

Passenger Business in fiscal 2022 were 4.21 million (up

the rear view mirror, and people have begun to travel again

ANA and the motivation and strengths of each individual

410.3% year on year), and operating revenues amounted to

in increasing numbers. Given this momentum, we are

contribute to our vision of becoming an organization in which

¥433.4 billion (up 517.9%).

resuming and increasing the number of international routes

employees are happy to work and a corporate group that

at Haneda International Airport in our passenger business,

continues to create new value.

maintaining the safe flight operations that have always been

During the COVID-19 pandemic, we looked forward to

Fiscal 2023 Business Policies
In addition to the continuing upward trend in demand for

Haneda–Munich flights resumed

our hallmark. At the same time, we are restructuring our

the day when we could see the smiles on the faces of our

inbound travel to Japan, leisure demand from Japan is beginning

group route network, including Peach and AirJapan, in

many customers. The stage is finally set, and I am embrac-

pursuit of multi-brand optimization. In our cargo business,

ing a sense of wonder to showcase the wings we have

we leverage the strengths of a combination carrier through

been strengthening through a corporate culture that has

the use of belly and freighters in parallel, pursuing structural

embraced the spirit of venture and continues to take on

reforms to enhance our earnings capacity.

new challenges. We will communicate our sense of wonder

to recover. We resumed the Haneda–Munich and Haneda–

Shanghai (Pudong and Hongqiao) routes and increased flights

on the Haneda–New York and Narita–Honolulu routes for the

2023 summer schedule. For Chinese routes, where recovery has

been slower than in other regions, we plan to expand capacity

In 2022, we were the only company in Japan, and one of

to customers and society, working as one in Uniting the

flexibly in response to future changes in demand trends.

only six in the world, to achieve the SKYTRAX 5-STAR rating

World in Wonder.

In July 2023, international flight operations from Haneda

Airport Terminal 2 resumed for the first time in three years.

Haneda Airport Terminal 2 International Flight Lobby

Air Transportation Business

ANA Domestic Passenger Business

ANA Cargo and Mail Business

Pursuing Profitability Through a Streamlined and Efficient Route Network as We Monitor

Using Freighters to Respond Flexibly to Changes in the Supply–Demand Balance;

Demand Trends

Fiscal 2022 in Review
Amid policies to balance the prevention of COVID-19 with

socioeconomic activities, leisure demand recovered signifi-

cantly beginning in October, supported by nationwide travel

support in Japan and other factors. In late June, we began

placing Boeing 777 aircraft with refurbished engines and

designed with Japanese domestic route specifications into

service. In the third quarter, all 15 Boeing 777 aircraft

became available for operations. During the quarter, we

shifted to wide-body aircraft and added extra flights, mainly

on weekends, during the year-end and New Year holidays,

and spring break. In January and February 2023, ANA

endeavored to maximize revenues by capturing recovering

demand and conducting promotions to stimulate demand,

including a ¥7,000 one-way flight to any domestic destina-

tion, a project to commemorate the ANA 70th anniversary.

In this way, ANA sought to attract new customers and

recover past users.

In terms of sales and service, ANA launched a new con-

cept called The Premium Kitchen for in-flight meals in pre-

mium class on domestic flights in December. ANA updated

menu choices based on customer feedback, and dispos-

able plastic containers used for in-flight meals were

replaced with paper containers, etc., to promote ESG initia-

tives further.

As a result, passenger numbers for the ANA Domestic

Passenger Business in fiscal 2022 amounted to 34.53 mil-

lion (up 92.3% year on year), and operating revenues

amounted to ¥529.5 billion (up 89.2%).

Fiscal 2023 Business Policies
As people transition to with-COVID-19 lifestyles, we expect

leisure demand on domestic routes and the use of domestic

routes by inbound visitors to Japan to expand, while busi-

ness demand should also recover gradually. ANA will main-

tain the Haneda and Itami routes as trunk routes, while

optimizing the division of flights based on a business plan

developed together with Peach to create a streamlined and

efficient route network focused on profitability. We will also

endeavor to improve customer convenience and business

efficiency through the use of ANA Smart Travel and other

digital technologies, while ensuring that we capture recover-

ing demand and maximize revenues.

ANA Domestic Passenger Business Results

Revenues

ASK

RPK

(Index) Fiscal 2018 = 100

Strengthening Efforts to Stabilize Earnings

Fiscal 2022 in Review
The balance of supply and demand in the air cargo market

has been tight since the COVID-19 pandemic. This balance

ANA International Cargo Business Results

Revenues

ATK

RTK

(Index) Fiscal 2018 = 100

125

100

2018

2019

2020

2021

2022

(FY)

Domestic-spec Boeing 777 aircraft

is beginning to normalize gradually due to the easing of

ocean transport congestion and an increase in air cargo

space with the recovery in passenger traffic. ANA

180

300

250

decreased the number of cargo-only flights using passenger

120

200

aircraft to strengthen our response to passenger demand.

At the same time, we captured trilateral cargo from China to

North America, making maximum use of freighters, even as

demand for major commodities such as automobile-related

150

100

parts, semiconductors, and electronic components weak-

ened. We also stepped up sales efforts by capturing

demand for high-unit-price products and large-lot demand,

supported by high-quality operations we demonstrated in

transporting vaccines and other products during the

COVID-19 pandemic.

As a result, ANA International Cargo volume in fiscal 2022

was 0.805 million tons (down 17.5% year on year), and

operating revenues amounted to ¥308.0 billion (down

6.3%).

Fiscal 2023 Business Policies
We expect demand for major commodities to increase

gradually throughout the second half of the year, even as an

adjustment phase continues in the first half. While keeping a

close eye on cargo market conditions, we will schedule

freighter flights on a monthly basis according to customer

needs, ensuring capacity to maximize revenues. We will

also develop demand for specific customers and specific

commodities that are less susceptible to market fluctuations

to stabilize earnings over the medium to long term.

In July 2023, we announced a final agreement with NYK

Line to acquire all Nippon Cargo Airlines (NCA) shares from

NYK. We intend to launch a full-scale study on new busi-

ness development for our cargo business in the post-

COVID-19 era.

246

96
93

2018

2019

2020

2021

2022

(FY)

Boeing 777F aircraft

Semiconductor manufacturing
equipment

Complete vehicles

The Premium Kitchen

Large animals

Major commodities targeted for freighter transportation

Business Strategy

Air Transportation Business

LCC (Peach)

Increasing Revenues by Raising the Ratio of International Routes in Full-Scale Recovery;

LCC Results

Revenues

ASK

RPK

(Index) Fiscal 2018 = 100

125

100

101

2018

2019

2020

2021

2022

(FY)

Non-Air Businesses

Concentrating Resources on Core Businesses in the Non-Air Business Segment,

While Strengthening Efforts to Expand Non-Air Business Revenue Domains

Airline Related

Fiscal 2022 revenues increased to ¥247.1 billion (up 19.5%

Airline Related: Operating Revenues

year on year), and operating income rose to ¥2.3 billion

(compared to an operating loss of ¥0.6 billion in the previ-

ous fiscal year). This result was mainly due to an increase in

passenger check-in, baggage loading and other ground

handling work, in-flight meal production, etc., in connection

with deregulation in Japan and other countries.

With the recovery in passenger demand, we expect to

expand the scale of our operations, including those for

overseas airlines, in fiscal 2023. We will endeavor to

strengthen profitability, focusing on ground handling ser-

vices and other contract operations.

(¥ Billions)

291.0

299.4

222.1

206.8

247.1

2018

2019

2020

2021

2022 (FY)

Notes: 1. The graph above includes ancillary revenues.

2. Figures prior to fiscal 2019 include Vanilla Air results.

Travel Services

Airbus A321LR service the Kansai–Bangkok route

The Tabi Kuji ticket, a new form of travel (Photo is of the Kaiun Tabi Kuji product)

Dynamic package products increased in fiscal 2022, sup-

Travel Services: Operating Revenues

ported by the increase in nationwide travel support in Japan

during the second half of the year. Overseas tours to Hawaii

(¥ Billions)

resumed in April for the first time in two years, while tours

expanded thereafter to all destinations. As a result, operat-

ing revenues amounted to ¥73.8 billion (up 59.5% year on

year), and operating loss amounted to ¥0.2 billion (com-

pared with an operating loss of ¥2.1 billion in the previous

year).

In fiscal 2023, we intend to pursue a world in which

people live in a mileage-based ecosystem, upgrading the

ANA Mileage Club app and redesigning ANA Pay.

Trade and Retail

150.7

143.9

73.8

45.0

46.2

2018

2019

2020

2021

2022 (FY)

In fiscal 2022, the gradual recovery in passenger demand

Trade and Retail: Operating Revenues

led to sales increases at ANA FESTA, airport retail stores. In

addition, we saw an increase in transaction volume in our

electronics business in response to strong demand in the

semiconductor market. As a result, operating revenues

amounted to ¥103.2 billion (up 26.4% year on year), while

operating income came to ¥3.5 billion (up 539.5%).

We will strive to improve airport retail and electronics

business profitability further in fiscal 2023, against the

backdrop of recovering passenger demand, particularly for

inbound travel to Japan, and solid demand for

semiconductors.

(¥ Billions)

150.6

144.7

103.2

79.9

81.6

2018

2019

2020

2021

2022

(FY)

Capturing Leisure, VFR, and Inbound Demand

Fiscal 2022 in Review
We endeavored to capture rising leisure and VFR demand

on domestic routes by expanding the scale of our opera-

tions. These efforts included increasing the number of

flights on the Narita–Sapporo (New Chitose) and Narita–

Fukuoka routes. In terms of international routes, we

resumed international operation for Kansai–Incheon at the

end of August 2022 for the first time in 16 months. Demand

for inbound travel to Japan recovered quickly once Japan

eased border measures. Peach has continued to expand its

route network by resuming the Kansai–Taipei and the

Haneda–Incheon routes, and by opening a new Kansai–

Bangkok route, representing Peach’s first mid-range inter-

national route.

In terms of sales and services, Peach expanded availabil-

ity of the Tabi Kuji ticket introduced in the previous fiscal

year, to other areas, including Okinawa and Sendai. Under

the Tabi Kuji ticket, customers purchase tickets but cannot

select their destination. New packaged products include

Kaiun Tabi Kuji, introduced in August 2022, and Yadotsuki

Tabi Kuji, introduced in February 2023. In this way, we have

endeavored to create new demand by offering travel experi-

ences that introduce an element of chance in destination.

As a result, LCC passenger numbers in fiscal 2022

amounted to 7.77 million (up 82.2% year on year), and

operating revenues totaled ¥90.2 billion (up 138.7%).

Fiscal 2023 Business Policies
We intend to restructure domestic routes into a leaner, more

profitable network while continuing to utilize early morning

and late night flight schedules.

Peach will gradually expand capacity in stages on inter-

national routes. In March, Peach opened a new Nagoya

(Chubu)–Taipei route, which was the first international route

for Peach out of Nagoya (Chubu) Airport. In May, we began

operation on the Kansai–Shanghai and Haneda–Shanghai

routes, followed by the June increase in Narita–Taipei route

flights. We will increase the resource allocation to interna-

tional flights as we resume full-scale operations. At the

same time, we intend to improve aircraft utilization while

capturing leisure demand originating from Japan and

inbound demand to Japan.

Business Strategy

Special Feature

A New Brand:

With experts predicting structural changes in medium- to long-term airline
demand in the wake of COVID-19, the ANA Group is determined to strengthen
our airline business by establishing a new brand to cover future areas of
growth and optimize our multi-brand approach. AirJapan will be the third
brand under the ANA Group, standing next to ANA and Peach. Air Japan Co.,
Ltd., which has been serving Asian routes for more than 20 years, will operate
AirJapan as a dedicated international airline under the ANA Group. We are in
the final stages of launch preparation for the Narita–Bangkok route, scheduled
to begin service on February 9, 2024.

Company Overview (as of July 2023)

Company name: Air Japan Co., Ltd.

Employees:

890

Representative:

MINEGUCHI Hideki,
President and CEO

Established:

June 29, 1990

Capital:

¥50 million

The AirJapan Brand

Brand Concept

Fly Thoughtful

Fleet:

Boeing 787 aircraft

Shareholder ANA Holdings, Inc. 100%
composition:

(the airline’s caring, thoughtful and gentle approach)

Brand Colors

A combination of the traditional Japanese colors of Ai

(indigo) and Akebono (sunrise)

Brand Logo

Rounded design inspired by the image of a kind and

thoughtful hand-to-hand interaction

Business Strategy

Capture strong inbound demand, mainly from Southeast Asia

Environmental Awareness

Business demand continues to expand at a moderate pace, while leisure and VFR* travel, represented by inbound visitors to

Japan, are likely to continue to grow over the medium to long term at a rapid clip. We expect Southeast Asia, in particular, to

demonstrate growth potential as a high-volume market similar to East Asia. We base this expectation on economic growth,

population growth, and the resulting formation of a broad middle class.

Targets

AirJapan will focus on attracting passengers visiting Japan from Southeast Asia and other regions.

AirJapan intends to differentiate from overseas competitors through a unique sense of Japaneseness that reflects the insights

of visitors to Japan.

* VFR: Visiting Friends and Relatives

No. of Foreign Visitors to Japan

No. of Tourists Visiting Japan

Southeast Asia

East Asia

Other Parts of Asia

Outside of Asia

Southeast Asia

East Asia

Other Parts of Asia

Outside of Asia

(Index) Fiscal 2006 = 100

180

120

800

700

600

500

400

300

200

100

754

487
421

243

(FY)

180

120

1,100
1,000
900
800
700
600
500
400
300
200
100
0

1,095

784

600

342

(FY)

Source: Japan National Tourism Organization (JNTO)

A Hybrid Airline Business Model

Fleet

Network

Human Resources

Safety

Operating under the same safety and operational standards as the ANA Brand

Comfort
Convenience

Offering in-flight comfort
with wider seat pitch, etc.

Profitability

Using modified aircraft
from ANA to reduce initial
investment

Serving Southeast Asia
and other routes that have
a large market for inbound
visitors to Japan

Pursuing aircraft
operation efficiencies, etc.,
by operating flights from
the Tokyo metro and
Kansai regions

Offering a quality of
service honed through
ANA Brand operations

Utilizing ANA Group FSC
and LCC expertise

Pursuing a business model that combines the advantages of a full service carrier (FSC) and an LCC

Business Strategy

Special Feature

Unique Japanese Omotenashi (Hospitality)

We offer unique value to overseas customers visiting Japan, helping them experience Japan
from the very first steps of their trip.

Seats

For mid-range flights in Southeast Asia and other regions, we

designed a 324-seat all-economy cabin offering an environment com-

fortable for more passengers. At a 32-inch seat pitch (seat distance),

our seats are wider than the same class of an FSC’s economy seats.

We also designed the seat to recline deeper, allowing passengers to

relax, even on long flights. All seats are equipped with type-A and

type-C USB ports and tablet holders for passenger comfort when

using personal smartphones and tablets.

Uniforms

AirJapan flight attendants collaborated in the production of the brand’s iconic uniforms from

the conceptual stages. These uniforms embody the character of AirJapan in design and func-

tionality. The uniform incorporates traditional Japanese cultural elements, such as knots and

layers, to give overseas passengers a sense of Japaneseness from the moment they board the

aircraft. In addition, we designed the uniform to be borderless, which means it can be worn in

one’s personal style regardless of gender and encourages the activity of our diverse human

resources. In consideration of environmental issues such as clothing loss, etc., AirJapan

intends to use uniform jackets and bottoms as shared items to minimize resources used.

Background Music

We created boarding music in collaboration with Tokyo University of the Arts to welcome pas-

sengers on board. Leading Japanese musicians and students of Tokyo University of the Arts

performed the music, which features the distinctive Japanese sounds of the shakuhachi flute

and the koto.

In-Flight Meals

In-flight meals will be available for pre-purchase and as in-flight purchase options. AirJapan

will offer a menu highlighting Japanese food culture, with food from various regions of Japan.

We expect these meals will be new discoveries for both Japanese passengers and visitors

bound for Japan and allow us to offer the delicious tastes of Japan from the sky. In-flight pur-

chase options will include retort-pouch and freeze-dried foods that can be preserved for an

extended period of time. These meals remain delicious thanks to Japan’s excellent food pro-

cessing technology, reducing food loss.

In-Flight Entertainment

Passengers will have access to movies and other video content on board using their own devices. In addition to new

Hollywood movies, travelers will enjoy kids’ content and AirJapan original videos.

MINEGUCHI Hideki
President and CEO
Air Japan Co., Ltd.

Message from the President of Air Japan Co., Ltd.

Air Japan Co., Ltd. began operating the Kansai–Seoul

Narita Airport to Southeast Asia and other parts of

route as an ANA scheduled passenger flight in 2001.

Asia. We plan to expand operations to Kansai Airport

Since that time, we have contributed to the growth of

and service to Oceania in the future.

the ANA international business by expanding routes

Based on the expertise in safety and on-time perfor-

gradually as an ANA Brand international business.

mance AirJapan has cultivated over many years of

As of August 2023, we operate up to seven round-

operations, we intend to provide new value of a differ-

trip flights per day from the Narita and Haneda airports

ent type than FSCs or LCCs, offering in-flight comfort

in the Tokyo metropolitan area to five cities: Singapore,

comparable to FSCs and a variety of fare and service

Bangkok, Ho Chi Minh City, Hong Kong, and Taipei.

options to suit customer travel styles. After AirJapan is

Before the outbreak of COVID-19, we operated flights

up and running, we will continue to operate under the

to 12 overseas destinations, offering a maximum of 18

ANA Brand to play a role in expanding the ANA-branded

round trips per day. With passenger demand declining

international flight business. I urge you to look forward

significantly due to the COVID-19 pandemic, we

to the new AirJapan as we prove to the world what

reduced the scale of our operations significantly to

two-way players can do in the airline business.

overcome the challenging situation, having no choice

but to furlough contracted foreign pilots. We even

shortened the work hours of our flight attendants or

transferred them to outside companies.

In anticipation of the end of COVID-19 and a signifi-

cant increase in foreign inbound travel to Japan,

we decided to launch AirJapan as a third airline brand

of the ANA Group. This new brand is our response

to the business opportunities in the post-COVID-19

era, and we are preparing to launch the business in

February 2024.

The AirJapan brand will use the ANA Group’s flag-

ship Boeing 787 aircraft, beginning with flights from

Medium- to Long-Term
Value Creation

The ANA Group aims to create sustainable societies and enhance corporate

value as a company that continues to grow together with society

by resolving social issues through business operations leading to

a world of wonder for all.

42
42

ANA Group ESG Management

The ANA Group’s new management vision is Uniting the World in Wonder. We aim to be
a company that grows together with society by resolving global environmental and social
issues through business in a way that is unique to the ANA Group. We will aim to resolve
materiality to the Group and achieve the simultaneous creation of social value and economic
value by identifying and incorporating those issues into our business strategies and plans.

Identification of Materiality
In fiscal 2022, the ANA Group reviewed the materiality to be addressed through redefining the FY2023-25 ANA Group

Corporate Strategy, which was also set to realize its new management vision.

Since fiscal 2020, we have united as a group and overcome company crises among impacts of COVID-19 and unpre-

dictable changes in the global environment through the ingenuity, motivation, and autonomy of each employee. The power

of people and the capabilities of our organization stems from our human resources. We believe that strengthening the

Identified Material Issues and Specific Initiatives

Materiality

Specific Initiatives

Relevant SDGs

• Achieve ANA Group 2030 medium-

term targets and 2050 long-term

Environment

• Reduce CO2 emissions

environmental goals

• Reduce resource waste ratio

• Disclose information in line with the

• Reduce food waste ratio

TCFD recommendations

• Conserve biodiversity

• Contribute to biodiversity conserva-

2030 2050

tion through initiatives such as those

aimed at preventing wildlife trafficking

investment in our human capital will enable them to leverage their individual and diverse strengths to drive change, thus

People

supporting the medium- to long-term sustainable growth of the Company. In light of this, we added human resources as a

material issue, as they have also historically served as the foundation of value creation for the ANA Group. Other material-

ity identified include environment, people (human resources, DEI, and human rights), and regional development.

We use the following process to identify materiality to be addressed by the Group.

(1) Identify long-term issues facing global society and determine whether these issues are sustainable and consistent with

our mission statement and corporate strategies

(2) Analyze whether we can contribute to the resolution of these issues through our business activities from the perspec-

tives of our mission statement, corporate strategy, ANA Group strengths, and social trends

(3) Determine degree of importance and identify materiality through mapping issues on two axes: one representing the

impact on group business (management axis), and the other representing the impact on society and the environment,

or stakeholder interest (society axis).

Materiality is discussed and deliberated at the Group Management Committee and submitted to the Board of Directors.

We periodically review the appropriateness of our material issues through discussions and information gatherings with

both internal and external stakeholders as we consequently repeat the process of identifying material issues to resolve.

This process enables us to scrutinize whether material issues are consistent with global affairs, the environment, and our

corporate strategy.

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
and Corporate Strategy

Materiality

Materiality Matrix

Extremely important

People

Human Resources
• Investment in human capital

DEI
• Diversity of customers and employees

Society
Axis

Human Rights
• Human rights violations across
the supply chain

Environment
• Climate change
• Environmental
pollution

ANA Group
Strengths

Social Trends

Consideration for
stakeholders /
Impact on the
environment
and society

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)

• Respond to labor shortages

Human
Resources

• Cultivate human resources

• Enhance ease of work

and organizations to

• Enhance job satisfaction

achieve transformation

• Succeed and evolve corporate

2030

• Enhance human capital

culture

productivity

Diversity,
Equity, and
Inclusion
(DEI)

• Develop human resources

for sustainable growth

• Promotion of universal

services

• Gender equality, supporting diverse

work styles, respecting diversity

• Respect the diversity of customers

2030

by promoting universal services

Human Rights

• Respect human rights

• Engage in responsible

procurement

• 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

2030

Regional
Revitalization

• Innovate to resolve social

issues

• Regional revitalization

through social contribution

and resolving social issues

• New value creation through the

use of avatars, drones, MaaS, etc.,

and cross-industry collaboration

• Contribute to regional revitalization

through social contribution activi-

ties and resolving social issues

2030

Strengthen
Governance
Structures

Disclose
commitments of
top management

Increase diversity
in Board
membership

Ensure appropriate
information
disclosure and
transparency

44
44

Medium- to Long-Term Value CreationANA Group ESG Management

ESG Management Promotion Cycle

Stakeholder Dialogue

The ANA Group executes ESG management through a cycle of dialogues, initiatives, and information disclosures. Through dia-

logues with stakeholders, it is essential for the group to understand the latest social needs and changing interests to accurately

understand the social expectations of the group and our responses to social issues. We evaluate the risks and opportunities for

our business and society based on the social demands we receive through these discussions. After debating the risks and oppor-

tunities at management meetings and other forums, the group incorporates them into its corporate strategy and reflects them in

specific initiatives. The ANA Group transparently discloses its goals, their progress, and the results of group efforts on its corpo-

rate website and in other media as necessary. We engage in deeper dialogue with our stakeholders through information disclo-

sures, reporting our progress and confirming the appropriateness of our initiatives in those discussions.

ESG Management Implementation Structure

We established the Group ESG Management Promotion Committee to address various ESG management issues. The commit-

tee is overseen by the President & Chief Executive Officer of ANA HOLDINGS INC., and chaired by the Chief ESG Promotion

Officer (CEPO), the director in charge of group ESG management. Members include group company directors and executive

officers, as well as the full-time Audit & Supervisory Board members. The ESG Management Promotion Committee convenes

four times a year to discuss important policies and measures and monitor target progress. Material issues related to corporate

strategy are discussed at the Group Management Committee and submitted to the Board of Directors. The Board of Directors

sets groupwide management policies and goals on issues such as ESG management, while supervising the management and

business execution of each group company.

Each group company appoints an ESG Promotion Officer (EPO) as the person responsible for promoting ESG management and

a member of the Group ESG Management Promotion Committee. At the same time, they appoint an ESG Promotion Leader (EPL)

at each company and department to lead the ESG activities of their respective organization. Matters discussed, resolved, and

reported by the Board of Directors, the Group Management Committee, and the Group ESG Management Promotion Committee

are shared and implemented throughout the Group in close cooperation with each EPO and EPL. We hold EPL meetings twice a

year to share comprehensive information and promote initiatives within each Group company and department.

Furthermore, we aim to objectively and multilaterally monitor the status of ESG management execution to achieve sustain-

able growth as a company and enhance corporate value over the medium to long term. For that purpose, we employ evaluation

indicators, such as external ESG evaluation, and reflect them in officer remuneration.

See P.107 for more on external evaluations.

ESG Management Implementation Structure

Board of Directors and Board of Corporate Auditors

Supervision

Proposal / Report

Supervision

Submit agenda /
Report

President &
Chief Executive Officer

Overall management

Group Management Committee

Submit agenda /
Report

Group ESG Management Promotion Committee

Chairman:
Chief ESG Promotion Officer (CEPO)
Committee Members: General managers of each business and corporate division,

Secretariat:

ESG Promotion Officer (EPO), etc.
Corporate Sustainability, General Administration,
General Administration Legal & Insurance

Instruction / Supervision

ESG Promotion Officer (EPO, group company directors and
executive officers overseeing ESG management)

Formulating Strategic Initiatives

We review and revise the content

of our initiatives every year based

on social trends and suggestions

from internal and external dia-

logues. The ESG Management

Promotion Committee discusses

strategies, which are then deliber-

ated and resolved by the Group

Management Committee and the

Board of Directors. Upon their

resolution, we formulate strategy

policies for the next fiscal year.

ESG Promotion Leader (EPL)

Group Companies and Departments

The ESG management promotion cycle begins with dialogue with external stakeholders. Based on the information obtained

from the dialogue, we strive to not only comply with relevant global laws and norms but also accurately understand the impact

that changing social conditions have on our business. We then work to resolve materiality based on our understanding of

societal demands and expectations.

The group also holds dialogues with internal and external stakeholders through information disclosures to ensure our efforts

are appropriate. This two-way communication holds us accountable and ensures we maintain management transparency.

External
Dialogue

• Dialogue with experts on the environment

• Dialogue with experts on business and human rights

• Dialogue with overseas ESG investors and rating

agencies

• Dialogue with university students

Internal
Dialogue

• Internal discussions to promote ESG management

awareness

• Alignment with corporate strategy

Dialogue with xSDG Laboratory, Keio Research Institute at SFC

P.102 Trust Building with Stakeholders

Dialogue

Non-Financial Information Disclosure

Global standards are under development for sustainability disclosures, including dis-

closures related to climate change. We will proactively disclose targets and results in

accordance with required sustainability disclosure guidelines, as well as disclose the

details of our initiatives, our process to achieve targets, and their results in a timely

manner through appropriate methods.

• Annual Report

- Progress, results related to materiality

• ANA SKY WEB

- ESG Content Index

- Information disclosures in line with the TCFD recommendations

- Progress, results related to

• Human Rights Report

medium- to long-term environmental targets

Initiatives
Details from P.48

Information
Disclosure

• CDP
We disclose information on corporate
strategies for CO2 emissions and climate
change.

In 2022, the company was selected as

a CDP Climate Change A List Company.

• DJSI
Stock index developed jointly by U.S.-based S&P and
Switzerland-based RobecoSAM.
The ANA Group was selected as a component of DJSI World
for the sixth consecutive year and DJSI Asia Pacific for the
seventh consecutive year,
based on their evaluations of
our corporate sustainability from
the perspective of economy,
environment, and society.

• Science Based Targets Initiatives (SBTi)
These are greenhouse gas reduction targets based on
scientific evidence consistent with the Paris Agreement.

In November 2022, we became

the first airline in Asia to receive
the certification from SBTi for our
fiscal 2030 greenhouse gas
emission reduction targets.

• TCFD
We analyze the risks and opportunities that climate change
poses to the ANA Group’s Air Transportation Business and
disclose information in accordance with the guidelines.
(Details on P.70)

Medium- to Long-Term Value Creation

Materiality

People

Basic Approach

We define people as a materiality at the ANA Group (human resources, DEI, and human rights). During the COVID-19

pandemic, we reaffirmed that human resources, added recently as a materiality, is a source of ANA Group value creation.

We must invest more in people if we are to return to a path of growth.

Diversity, equity, and inclusion (DEI) is a groupwide effort under which we develop human resources for sustainable growth

and to respond to the diversity of our customers.

Meanwhile, ANA Group business operations impact the human rights of a variety of stakeholders. We take appropriate

measures to respect the human rights of group employees as well as the rights of people in our supply chain.

By appropriately addressing people issues, we aim to enhance corporate value sustainably, enriching the lives of our

employees, their families, and others whose lives we impact.

CHO Message

We create environments in which
ANA Group employees work with vitality and
enthusiasm to achieve sustainable corporate
value enhancement and personal well-being.

NAOKI Yoshiharu

Executive Vice President

Group Chief Human Resource Officer (CHO)

Value Creation
Value Creation

Sustainable Corporate Value
Enhancement

Enriching the Lives of Employees,
Their Families, and Others

Vision
ANA Group employees around the world
working with vitality and enthusiasm,
maximizing their individual strengths

• Human resources portfolio aligned with

business strategy

• Organizational culture that drives change
• Diverse human resources maximizing

individual strengths

Comfortable
Workplaces

• Health management
• Flexible work styles
• Improved employee wages

Fulfilling
Work

• Talent management
• Career development support
• Human resources development

through external secondments and
experience in challenging situation

• Reskilling

Continued Evolution of
Corporate Culture

• Encourage contributions of
a diverse employee base

• Opportunities to demonstrate
talents (culture of volunteerism)

• DX for reduced labor and

improved work styles

• Respond to the diversity of our customers and develop human resources

for sustainable growth

• Respect the human rights of ANA Group employees and the people in our

supply chain

Human
Capital

DEI

Human
Rights

ANA’s Way is the ANA Group code of conduct, com-

Group employees around the world work with vitality

municating the spirit of our founder as expressed in

and enthusiasm, as well as improved employee

the words of our founder: Hardship Now, Yet Hope for

engagement to achieve sustainable corporate value

the Future and Wakyo (close cooperation). The

enhancement and personal well-being. In pursuing the

strengths of the ANA Group lie in the power of our

two-axis management of our air transportation and

people and the comprehensive capabilities (power of

non-airline businesses, as described in the ANA Group

our organization) that transcend job titles, companies,

Corporate Strategy, we must clarify our human

and other organizational barriers, and these strengths

resources portfolio and address several human

become the source of value creation.

resources-related issues. These issues include secur-

During the COVID-19 pandemic, employee-led

ing the human resources necessary to expand the

efforts to secure profitability and agile groupwide cost

scale of our businesses, the development of next-

reduction measures drove our performance recovery.

generation leaders capable of fostering change, and

The fiscal 2022 ANA’s Way Survey (ANA Group

human productivity improvement. We plan to imple-

Employee Engagement Survey) demonstrated the

ment several measures to stabilize the livelihood of our

strong sense of attachment of our employees, who

employees, including raising base wages, starting

scored ANA 4.05 points out of 5.00 in response to the

salaries, and bonuses to pre-COVID-19 base levels,

statement: I am proud to work for the ANA Group.

having reduced employee pay during the pandemic.

Of course, we must maintain these strengths into

Other measures include the resumption of flight atten-

the future. At the same time, we must respond to the

dant hiring after a four-year freeze, internal intern-

fast-paced changes in customer needs and uncertain

ships, and reskilling.

international conditions in the post-COVID-19 era,

The essence of human resources management is to

continuing to develop our human resources and

support each employee to maximize their potential. To

evolve our corporate culture for repeated cycles of

this end, we must create systems and mechanisms

reform, Uniting the World in Wonder as we state in our

tailored to each group company. I am in frequent con-

new management vision. Recognizing these issues,

tact with the chief human resources officers of other

we launched the Corporate Transformation Council in

companies and outside experts to exchange opinions,

fiscal 2023 to communicate our new management

thinking every day about the most appropriate sys-

vision, increase productivity, and foster work-style

tems and measures for our group. We continue to

reform. This council encourages group executives and

investment more in human resources, taking into

employees work together to strengthen our people-

account the ANA Group corporate culture, the direc-

and organization-based efforts.

tion of our corporate strategy, and the challenges we

Our medium-term human resources strategy calls

face, to become a resilient corporate group in which

for the creation of environments in which diverse ANA

all employees make the most of their talents.

Medium- to Long-Term Value Creation People

Human Capital

Human Capital Supporting Our Corporate Strategy

Input

Corporate Strategy / Human Resources Strategy

Output / KPI

Outcome

Strengthen governance related to human capital,

We will implement several initiatives to strengthen our human resources

In addition to the main indicators listed below, we have

We aim to achieve our corporate strategy through

putting the power of our people and the power of our

and organization based on the human resources strategy tied to our

defined monitoring indicators, employee engagement

improved engagement. We also strive to increase

organization to work for ANA Group value creation.

corporate strategy. Three priority measures (below) are linked to the

survey scores related to priority measures, and other

human capital and create a virtuous cycle by magnifying

results of employee engagement surveys (P.52).

indicators as KPIs.

the mindset of our employees as they understand their

contribution to value creation.

Governance

Priority Measure (1) Comfortable Workplaces

We create healthy, comfortable workplaces that exemplify the attraction of

working for the ANA Group.

Improve Engagement

Strengthen Human
Capital Management

• Health management
• Flexible work styles
• Improved employee compensation

P.53
P.54

• Established CHO position (fiscal 2022)

• Designated human resources as a materiality

(fiscal 2023)

• Established Corporate Transformation Council

Priority Measure (2) Fulfilling Work

(fiscal 2023)

• Expanding information disclosure

(fiscal 2023 onward)

Health Management Indicators (FY2029 Targets)
Healthy BMI results

70% (men and women)

Smoking rate

under 20% (men); under 3% (women)

Metabolic syndrome

under 12% (men); under 1.3% (women)

Physical ailments

under 20% (men); under 30% (women)

We create environments in which all employees contribute, working with
vitality and enthusiasm, learning new skills, and building on their strengths.

Digital Human Resources
Vs. FY2022 1.6 times (FY2025)

• Strengthen talent management (DX human resources, human resources capable of

autonomous company management, etc.)

• Career development support
• Human resources development through external secondments and

front-line experiences

• Reskilling

P.54

Proper Balance of Group Companies
Executives 40% / General Managers 70% (FY2025)

Priority Measure (3) Continued Evolution of Corporate Culture

We will protect the culture that is the ANA Group identity as we aim to
create a highly productive, change-oriented organizational culture.

• Encourage contributions of a diverse employee base
• Opportunities to demonstrate talents (culture of volunteerism)
• DX for reduced labor and improved work styles

Ratio of Female Executives / Managers
30% (as early in the 2020s as possible)

ANA Brand Employees (operating basis)
29,000 (FY2025)

ANA’s Way Survey

(ANA Group Employee Engagement Survey)

Average Score, All Questions

FY2019 Result

FY2022 Result

FY2025 Target

3.80

3.96

4.03

Pride in Working for the ANA Group

FY2019 Result

FY2022 Result

FY2025 Target

4.09

4.05

4.09

Job Satisfaction and Sense of Accomplishment

FY2019 Result

FY2022 Result

FY2025 Target

3.74

3.75

3.88

Linkage

Achievement

Bring to Bear

Corporate Strategy

Challenge and Endeavor
Power of Our People

Collaborate and Cooperate
Power of Our
Organization

• Two-axis management of the air transportation and non-airline businesses

(re-scale businesses, monetize non-airline businesses)

• Achieve the new management vision (excitement for employees, customers, and society)

Human Resources and Organizational Issues
• Labor (secure human resources to support operations)

• Human resources and organizational development for transforma-

tion (air transportation and non-airlines)

• Human productivity

Achievement

Value Creation, Capital Expansion

Improved Group
Quality
(Intellectual Capital)

Strong Stakeholder
Relationships
(Social Capital)

FY2025 Targets
Operating Income
¥200 billion
(Financial Capital)

Magnify the Mindset of Employees as They Understand Their Contribution
(Increase Human Capital)

Medium- to Long-Term Value Creation People

Identifying Measures Based on Engagement Survey Results

We analyzed scores for each question and calculated the correlation with profit performance based on ANA’s Way Survey

results over the past 10 years (FY2013-2022). Our analysis showed that pride in working for the ANA Group and job satisfac-

tion and sense of accomplishment correlated with operating income per employee for each fiscal year in question.

We linked issues identified from responses to the ANA’s Way Survey with the priority measures of comfortable workplaces,

fulfilling work, and continued evolution of corporate culture.

To identify changes in employee awareness in a more timely manner, we added a new quarterly Pulse Survey in fiscal 2023.

We plan to take flexible action as needed in response to these surveys.

Key Characteristics and Human Resources Strategy Linked to the ANA’s Way Survey

10-Year Average Score
(1 to 5 points)

Analysis Results and Interpretation

Priority Measures for Human
Resources Strategy

Category

Workplace Environment,
Comfort

Work Time Management
3.69
Vibrant Work Environment
3.66

Relatively Low Scores by Category

The nature of the industry often requires

working early mornings, late nights, and

holidays to maintain aircraft operations.

Employees want flexible work schedules

that fit their lifestyle.

Job Satisfaction and Sense
of Accomplishment
3.79

Pride in Working
for the ANA Group
4.01

Correlates with Operating

Income per Employee

(95% Statistical Significance)

Employees are motivated by the realiza-

tion that their work brings smiles to cus-

tomer faces, contributes to society, and

benefits the company.

Correlates with Operating

Income per Employee

(95% Statistical Significance)

Group employees have scored this area

consistently high, demonstrating a strong

attachment to the ANA Group, proving

that working with pride is a driving force

for value creation.

Comfortable
Workplaces

Fulfilling Work

Continued
Evolution of
Corporate
Culture

Initiatives to Strengthen People and Organizations

Comfortable
Workplaces

Health Management*1 Initiatives

The ANA Group issued the ANA Group Health Management Declaration in April 2016. We create environments in which

employees work with vitality and enthusiasm in mental and physical health, aiming to enhance corporate value and improve

employee quality of life. In recognition of past groupwide initiatives (ANA Group Exercise, occupational health staff seminars,

etc.), we were awarded the Health & Productivity Stock Selection 2023*2. In addition, eight ANA Group companies were recog-

nized as 2023 Certified Health and Productivity Management Outstanding Organizations (White 500)*3.

*1 Health Management is a registered trademark of NPO Kenkokeiei Kenkyukai
*2 Health & Productivity Stock Selection companies are companies listed on the Tokyo Stock Exchange that consider the health management of their employees from a strategic managerial

perspective. In principle, only one company per industry is selected.

*3 Not limited to publicly traded companies, the Health & Productivity Management Outstanding Organizations Recognition Program (White 500) recognizes large corporations that practice

excellent health management in cooperation with health insurance societies and other insurers. The top 500 companies among those selected as outstanding organizations are included in
the White 500.

ANA Group FY2023-29 Medium-Term Health Management Plan

We recently formulated the ANA Group FY2023-29 Medium-Term Health Management Plan. Targeting March 2030 (end of

fiscal 2029), we intend to strengthen our health management initiatives in line with five key categories. We continue to assign

the role of Chief Wellness Officer (CWO) to the director in charge of ANA Group human resources and labor affairs. The CWO is

responsible for health management across the group. We clarify the structure for health management at each group company

and continue to engage in health management at all group companies. The ANA Group continues to pursue health manage-

ment as we strive for sustainable corporate growth and rising levels of corporate value.

Physical Health Measures

• Prevent and quickly detect lifestyle-related disease, cancer, and women’s health issues

• Provide early education for young and healthy employees to raise awareness of their future health

Mental Health Measures

• Strengthen line care through the effective use of stress check results, and improved internal consulta-

• Prevent mental illness through comfortable work environments and improved self-care

tion system, etc.

Ensuring Compliance with

Occupational Health and

• Measures to prevent occupational accidents

Safety Laws

Measures Based on

• Analyze employee health data; identify issues and trends specific to the ANA Group and take

Data Analysis

response measures

Proactive Information

• Communicate ANA Group health management initiatives to stakeholders through expanded

Disclosure

information disclosure

Fiscal 2022 Initiatives

ANA Group Exercise

Health & Productivity Stock Selection Awards

Vegetable Day Co-Sponsored by Kagome Co., Ltd.

Medium- to Long-Term Value Creation People

Comfortable
Workplaces

Systems Supporting Flexible Work Styles

Continued
Evolution of
Corporate
Culture

Evolving an Organizational Culture Unique to the ANA Group Identity

We continue to review systems and expand options for diverse work styles and work-life management.

We are changing our organizational culture from the bottom up by creating a system that allows young and mid-career profes-

Dual Employment and Side Jobs
External: Encouraging the acquisition of new knowledge and skills

(2) No restrictions on reasons for leave of absence

(3) Sabbatical grants available to alleviate concerns about

through experiences not available within the company

living conditions

Fiscal 2022 result: 2,300 people (ANA)

About 390 people have used the system in the

three years since introduction in April 2021

Internal: Solicit volunteers for dual employment in specific

departments within the group, providing opportunities to

experience work not available in their own departments

New Work Styles for Flight Attendants (ANA)
New (fiscal 2022) option for fewer work days, with approxi-

Sabbatical Leave System (ANA)
Leave system used for various purposes such as study

abroad, self-development, childcare, and nursing care

mately 3,000 employees opting for the system

(1) Option to work only domestic or only international flights

(2) Choice of working 80% or 50% of normal work hours

(3) Work system allowing designation of home base

(1) Choose a leave of absence period from 1 month to a

Systems will continue to operate with certain

maximum of 2 years

changes in fiscal 2023

sionals to participate directly and interact with each other.

Happiness Planet Gym
• The ANA Group Happiness Cup is a team competition event for young

employees serving as a means to improve employee well-being. The

event incorporates Happiness Planet Gym, an organizational support

service provided by Hitachi Group company Happiness Planet to create

positive connections between people and organizations.

• Aiming to increase employee happiness and maximize performance, keys

to improving customer service

Topic

Positive
Connections and
Happiness

Support

Content
Posting

Exciting Challenge Goals
• Individuals set challenging goals in areas aligned with their interests, contributing to the achievement of our new management vision

• Individuals pursue actions that offer excitement to oneself, their peers, customers, and society, sharing results and offering support

through dialogue in an organizational setting

Fulfilling
Work

External Secondments

Continued
Evolution of
Corporate
Culture

Fostering a Culture of Praise —Good Job Program—

As of May 2023, a cumulative total of 2,300 employees had been seconded to companies, organizations, and municipalities

We launched this program in fiscal 2001 as a tool to foster a culture of mutual appreciation and respect. Employees send mes-

outside the ANA Group during the COVID-19 pandemic. These professionals are bringing a variety of work experience and

sages of appreciation to colleagues in other group companies or divisions.

values back to the ANA Group for their own personal and ANA Group growth.

Secondment Partners (ANA, Cumulative)

Secondment Program Overview

Construction, Real
Estate, Chemicals
4%

Retail, Food
6%

Agencies,
Municipalities
7%

Trading Companies,
TV, Hotels, Schools
7%

Telecommunications
8%

Finance
11%

Transportation
2%

Medical Care
1%

Secondment

Selection

• Selected mainly through open recruitment

• Each round accompanied with announcement ceremony

and message from the ANA Holdings president

Human
Resources
38%

Associations, Etc.
16%

During

Secondment

• Follow-up with seconded employees through periodic

interviews with home-company supervisor

• ANA has the opportunity to share its corporate culture with

other companies through etiquette course materials, etc.

Completion of

Secondment

• Home-company supervisor meets with seconded

employee to discuss work and career after returning

Return to Work

• Returning employee brings new skills and experiences to

the home company

• Returning employee shares experiences from second-

ment with colleagues

Praise

Take an interest in the work of peers

and find areas to offer praise

Number of Messages Sent

(Ten thousand)

Be Praised

Increased motivation for work

Spurs the praised individual to pass

on compliments to peers

150

120

More than 1 Million Messages, Despite the COVID-19

Pandemic and Declining Passenger Demand

103

91※

Web Submission

Feature Introduced

2014

2015

2016

2017

2018

2019

2020

2021

2022

(FY)

* The number of messages decreased in fiscal 2022; however, participation rates increased (from 65% to 66%), with 26,520

employees using the service.

Medium- to Long-Term Value Creation People

CDO Message

The ANA Group works to accelerate the
promotion of diversity, equity, and inclusion to
enhance employees’ lifestyles and growth,
enabling them to lead the workplace.

TANEIE Jun

Executive Vice President

Group Chief Diversity, Equity & Inclusion Officer (CDO)

ANA Group DEI Initiatives
The ANA Group works to spread diversity, equity, and

Future Direction
The ANA Group works to achieve our new manage-

inclusion (DEI) throughout our organization as a mate-

ment vision Uniting the World in Wonder and become

rial issue. The value created by diversity and improve-

a group where all employees around the world can

ments in quality and safety are important elements

work with enthusiasm and demonstrate their individual

that support our sustainable growth as we aim to

strengths, as envisioned in our medium-term human

achieve our vision of Uniting the World in Wonder.

resources strategy. As such, we set the following three

Our airline group requires a high level of technology

key issues in our medium-term DEI strategy.

and expertise. As such, the source of our competitive

1) Create a DEI-infused workplace and improve

advantage comes from its people and the power of

employee engagement

their teams. In a drastically changing global environ-

2) Ensure diversity in decision-making bodies and

ment, co-creation with stakeholders is additionally

provide an enriched work-life balance

becoming increasingly important, even in businesses

3) Further exercise the capabilities of a diverse

other than air transportation. The foundation that sup-

workforce

ports the ANA Group is comprised of the following: (1)

We recognize the importance of the ratio of female

workplaces that enable each employee to maximize

managers as a social issue and indicator to ensure

their abilities regardless of differences in attributes and

diversity in decision-making bodies. In 2021, we for-

work styles, resulting in individual strength leading to

mulated new medium-term targets for the ratio of

organization strength, and (2) a corporate culture in

female executives and managers and have steadily

which employees respect each other and actively com-

improved this ratio through a comprehensive approach

municate across generations. Both of these founda-

to personnel and support systems, capacity building,

tions are created through DEI promotion.

and awareness building. We also aim to achieve

DEI not only serves as a responsible approach to

gender equality as we clarify what “Women’s

human rights and discrimination and as a driving force

Participation and Advancement in the Workplace” truly

of sustainable growth but it is also becoming increas-

indicates. The ANA Group firmly believes that the

ingly important to companies from a human capital

diversification of decision-making bodies and work

management perspective. Historically, the Group has

styles that enhance work-life balance are, and will

worked to accelerate DEI promotion and speed up

continue to be, essential elements for the growth and

decision-making by establishing dedicated organizations

happiness of our company and employees. As such,

and appointing a Group Chief Diversity, Equity &

we will continue to create a fair and inclusive work-

Inclusion Officer (CDO) in line with our 2015 ANA Group

place where employees around the world have oppor-

Diversity and Inclusion Promise as our basic philosophy.

tunities to grow and demonstrate their abilities.

Diversity, Equity, and Inclusion (DEI)

Understanding and Addressing Diversity

Gender Equality: Diversifying Decision-Making Bodies
The ANA Group aims to reach a 30% or higher employment ratio of

female executives and managers as early as possible by 2030. We take

action to review personnel and support systems, build capacity, and

ANA Group*1

foster awareness to ensure diversity in Group decision-making, as well

ANA

as aid the autonomous growth of employees.

Certain group companies, such as ANA, obtained the highest level of

certification under the “Eruboshi” Certification. This certification is based

on the Act on Women’s Participation and Advancement in the

Workplace established by the Ministry of Health, Labour and Welfare.

Ratio of Female
Executives

Ratio of Female
Managers

10.4%

(+0.4%)

16.3%

(±0.0%)

19.3%

(+1.1%)

19.3%

(+1.0%)

* As of June 2023 (year-on-year change)

Diverse Work Styles: Increasing the Percentage of Employees Taking Paternity Leave
The ANA Group develops systems that help enhance the lifestyles of employees in various ways, such

as through balancing work with childcare and/or nursing care. The ratio of male employees taking child-

care leave is increasing through our efforts to promote understanding among supervisors and work-

places, in addition to the employees themselves. We extended access to the three-day parental leave,

which had previously only been available to certain companies, to the entire Group and set 2030 tar-

gets to ensure all eligible employees take this leave.

Fiscal 2022
Percentage of Employees Taking Childcare Leave
57.3%*1 (FY2021: 27.8%)

Percentage of employees taking either or both
childcare leave or the three-day parental leave
90.7%*1 (FY2021: 80.7%)

LGBTQ+: Respect for Diversity of Sexuality
In 2022, we established the Basic Policy on Respect for Diversity of Sexuality (LGBTQ+) and work to improve workplace envi-

ronments and promote understanding of these issues. Efforts include expanding our partner system and addressing discrimi-

nation. 35 Group companies were awarded a rating of Gold in the PRIDE Index*2, an evaluation index for corporate actions

related to LGBTQ+. ANA has received this award for seven consecutive years.

Employment of People with Disabilities
The ANA Group established the team for specially promoting employment of people with disabilities in 2012. This team focuses

on encouraging the employment of people with disabilities by strengthening cooperation throughout the Group through regular

meetings and seminars.

The ANA Group 36K-Employee Kickoff Group code of conduct on the employment of people with disabilities, formulated in

2015, is a shared commitment of all Group employees to promote a proper understanding of reasonable accommodation from

both tangible and intangible perspectives. Under this code, we will work to improve society through the creation of a workplace

where everyone can demonstrate their strengths and play an active role.

Employment rate of people
with disabilities as of June 1, 2023*3
2.72%

All 40 Group companies achieved the legally
mandated employment ratio.

*1 Total of 38 companies: ANA HOLDINGS INC., 36 companies subject to our management rules, and ANA Wing Fellows Vie Oji Co., Ltd.
*2 Organized by work with Pride
*3 Total of ANA HOLDINGS INC, ANA, and qualified ANA Group companies

Universal Service

Initiatives:

https://www.ana.co.jp/group/en/csr/customer_diversity/

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.

Medium- to Long-Term Value Creation People

Human Rights

Basic Approach

1 Respect Human Rights

To ensure respect for human rights, we conducted a review in 2016 to identify potential risks to human rights related

to business activities across the ANA Group and at all locations we serve. We are working to prevent the occurrence

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/

The ANA Group has a wide range of business operations which have the potential to impact the human rights of our

of risks with regard to the areas we have identified.

stakeholders.

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.

We will continue human rights initiatives, recognizing that respect for human rights lies at the very foundations of the philoso-

phy of the SDGs.

Issuing the Human Rights Report

The ANA Group issued our first Human Rights Report in Japan in 2018, aiming to promote communication with stake-

holders through active dissemination of our initiatives to respect human rights. The group has continued to issue human

rights reports since that time. This year, we will again issue a human rights report describing our current efforts.

Expert Review

Since fiscal 2016, the ANA Group has held regular annual discussions with international human rights experts to obtain advice

Survey on Employment Conditions of Foreign
Workers in Japan
Every year since 2017, we have engaged a third-party organi-

We continue to perform periodic surveys of the employment

status of foreign workers across our supply chain. We also

examine safe and secure routes for recruiting foreign workers in

zation to assess working conditions for non-Japanese nationals

the ANA Group and our supply chain.

working in ground handling and catering operations at airports.

These assessments are performed with the cooperation of

contractors in Japan and include direct interviews with workers

and inspections of living arrangements. In 2021, we began a

Prevent the Use of Airplanes in Human
Trafficking
After conducting training for all cabin attendants, we began a

system-based survey on the employment status of workers at

program in fiscal 2019 to report potential cases of human traf-

group companies and major contractors.

ficking found in-flight to ground facilities. We continue to work

In January 2022, we received an anonymous request to

with government agencies and other companies in our industry

investigate the human rights situation of technical intern train-

to increase the momentum and effective deterrence across the

ees at Narita Airport. In response, we worked with a third-party

airline industry in addressing this issue.

organization in April to conduct face-to-face interviews with 33

technical intern trainees working for ANA Group companies and

major contractors. We also conducted a follow-up in October,

Corruption Prevention
To comply with the anti-bribery laws of countries around the

confirming no human rights violations. In the same month, we

world, we have established the ANA Group Anti-Bribery

conducted a second survey on the employment status of work-

Regulations which explains these regulations with specific

ers for 40 group companies and 127 major contractors, con-

examples. By distributing the ANA Group Anti-Bribery

firming the employment of 5,967 foreign workers across 67

Handbook and conducting e-learning programs, we are work-

countries. Based on the survey results, in March 2023 we

ing to educate our employees. In early 2023, we offered online

conducted direct interviews through a third-party organization,

in-person training to employees and other persons at our North

on ANA Group initiatives to respect human rights. In October 2022, we invited three human rights experts from two overseas

talking with foreign workers at major contractors where we

American locations.

entities, the United Nations Development Programme*1 and the World Benchmarking Alliance*2, to evaluate the progress of the

identified potential risks.

initiatives set forth by the ANA Group given the advice received in the previous fiscal year. We received advice from experts on

the importance of trusted stakeholder engagement and direct dialogue. We also received guidance on how to link human rights

and the environment and in identifying human rights and environmental issues across the value chain.

P.103 for more details

*1 The lead United Nations development support agency working to eradicate poverty, reduce inequality, and promote sustainable development
*2 The Index Initiative was 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.

Human Rights and Environmental Due Diligence Workshops

In July 2022, the ANA Group established an organization-wide forum to discuss and

confirm concerns regarding potential risk factors from the perspective of human rights

and the environment across the businesses that the group develops and executes.

Representatives from more than 35 group companies and internal departments gathered

to identify potential issues in the presence of representatives from the Caux Round Table

(CRT Japan)*3 and Conservation International Japan*4, a third-party organization. After

the forum, we held dialogues with domestic and international experts to identify new

human rights and environmental issues where we should focus future efforts.

For more on new topics, see:

https://www.ana.co.jp/group/en/csr/human_rights/duediligence/
*3 Caux Round Table is a global network of business leaders aimed at ensuring business contributes to a more free, fair, and

transparent society. The organization assists companies to promote their human rights activities. The network mainly
supports corporate efforts to respect human rights.

*4 The Japanese branch of an international NGO with offices in 29 countries. Conservation International advocates for policies

related to climate change and biodiversity.

2 Engage in Responsible Procurement

In 2020, we formulated the ANA Group Procurement Policy to conduct 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.

In accordance with the ANA Group Procurement Policy, we

managers (approximately 100 people). The training covered the

analyzed priority risks in our supply chain, identifying tableware

importance of complying with social norms, laws, and regula-

and cutlery used in-flight as high priority items.

tions in procurement activities, as well as the importance of

In fiscal 2022, we held information sessions on the ANA

continuing to reduce our environmental impact. The ANA Group

Human rights and environmental due diligence workshops

Group procurement policy for seven domestic suppliers of

tableware and cutlery, seeking an understanding of responsible

will continue

to conduct

procurement. In addition, we conducted a survey on sustain-

awareness-raising

ability with suppliers who attended the information sessions. In

activities.

this process, we monitor and confirm the status of initiatives at

each company, providing feedback on ANA Group intentions

and deepening communication with suppliers.

The ANA Group also conducts periodic training to ensure a

broader understanding of our procurement policy. In fiscal

2022, we held training three times for ANA Group procurement

Information session for Toyo-Sasaki Glass Co., Ltd. (Supplier)

Medium- to Long-Term Value Creation

Materiality

Environment

Basic Approach

As a company whose core business is air transportation, the ANA Group recognizes the urgency in reducing greenhouse gas (GHG)

emissions for sustainable business growth and as our contribution to society.

Inspired by this recognition, we established the ANA Group Environmental Policies, 2050 Environmental Goals, and 2030

Environmental Targets. We pursue strategic initiatives to achieve a balance between our medium- to long-term corporate aspirations

and short-term growth, aiming to enhance corporate value on a sustainable basis.

Progress in Medium- to Long-Term Environmental Goals and FY2022 Results

In 2021, we announced our 2050 Environmental Goals and plan to achieve net zero carbon emissions by fiscal 2050. We also formu-

lated the 2030 Environmental Targets as a roadmap toward this goal. In May 2023, we updated our target for fiscal 2030 CO2 emissions

from flight operations. We will promote initiatives to reduce our environmental impact over both the medium and long term, using our

fiscal 2019 results as a benchmark and monitoring progress every year.

Targets

CSO Message

We will create an environment and
accelerate efforts to achieve our fiscal 2030
targets to realize net zero emissions
by fiscal 2050.

MIYATA Chikako

Executive Vice President

Group Chief Sustainability Officer (CSO)

The ANA Group seeks to reduce the GHG emissions from

Furthermore, amid the growing global demand for SAF,

our flight operations to achieve net zero emissions by the

it is essential that we develop recycling systems to ensure

year 2050. In October 2022, the International Civil Aviation

the stable supply of feedstocks as well as technologies to

Initiatives

FY2030

FY2050

FY2022 Results

Organization (ICAO) reviewed CORSIA baseline for 2024-

diversify those feedstocks.

• Improve flight operations
• Adopt new aircraft technologies
• Decarbonize aircraft fuel by using SAF*1
(replace 10% or more of fuel used with
SAF by FY2030)

• Use negative emissions technologies

Aircraft

(NETs)

• Use emission trading schemes

Net 10%+
reduction
vs. FY2019
(Net emissions: 11.1
million tons or less)

Replace 10% or
more of fuel used
with SAF

Net zero*2

24.3%
reduction*3
(Emissions:
9.32 million tons)

Reduce CO2
Emissions

External
Environment
Necessary for
Achieving Goals

• Stable supply of SAF (volume and price)
• Adopt new aircraft technologies (Development of electric and hydrogen airplanes, etc.)
• Establish an environment for the emissions trading market

• Enhance energy efficiency and upgrade

aging facilities and equipment

• Use renewable energy
• Procure electric vehicles (EVs) and fuel cell
vehicles (FCVs) when upgrading airport
vehicles

Non-
Aircraft

33%+ reduction
vs. FY2019

Net zero

22.8%
reduction

External
Environment
Necessary for
Achieving Goals

• Expansion of renewable energy supply
• Development of airport infrastructure to convert to EVs/FCVs

Reduce Resource Waste
Ratio (Plastics, Paper, etc.)

• Switch from single-use plastics to paper
and reusable materials for in-flight meal
containers

• Establish an in-house recycling scheme

for plastic film used in cargo
transportation

70%+ reduction
(waste generated
vs. FY2019)

Zero waste ratio

54.2%
reduction

Reduce Food Waste Ratio
(Including In-Flight Meals,
etc.)

• Monitor the disposal of in-flight and

domestic airport lounge meals and opti-
mize the number of meals loaded using
in-flight pre-order service, etc.

Less than 3.8%
waste ratio
(FY2019: 4.6%)

Less than 2.3%
waste ratio
(50% reduction vs.
FY2019)

5.4%

Conserve Biodiversity

• Conduct educational activities aimed at eradicating illegal wildlife trade in air transportation
• Engage in environmental conservation activities aimed at biodiversity conservation, etc.

*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
*2 The balance of CO2 emissions that cannot be reduced over the entire life cycle will be eliminated through technologies, etc., that physically remove CO2 from the atmosphere
*3 Includes reductions due to flight suspensions and lower frequency caused by COVID-19

2035 and proposed long-term goals for carbon neutrality.

We plan to accelerate solutions to these issues in an

CORSIA is a global harmonized carbon offsetting and

all-Japan effort, working with various stakeholders based

reduction scheme for international aviation. Decarbonizing

on public-private partnerships toward the stable domestic

the aviation sector is an urgent issue, and in December

production of SAF at internationally competitive prices.

2022, the Japanese government published the Basic

But decarbonizing aviation cannot be achieved through

Policy for the Promotion of Decarbonization in the Aviation

one approach alone. We must create a comprehensive

Sector.

structure combining multiple solutions for operational

The key to achieving net zero emissions by 2050 is to

improvements, aircraft innovation, etc., collaborating with

transition away from using fossil-based fuels and switch to

all stakeholders across the supply chain and industries.

low-carbon alternatives for powering our fleet. Made from

We are reducing CO2 emissions through daily operational

renewable sources including biomass and used cooking

improvements, adopting more efficient flight operations

oil, SAF is considered sustainable since it does not

and flight routes while maintaining and improving safe

increase CO2 emissions in the sense that the raw materi-

day-to-day operations. There are, however, CO2 emis-

als are from existing feedstock on our planet and are

sions that cannot be reduced through operational efficien-

recycled into energy. Experts say that SAF CO2 emissions

cies, upgrades to more fuel-efficient aircraft, and the use

over the life cycle from feedstock collection through usage

of SAF and other low-carbon fuels. For these emissions,

are 80% lower than conventional fossil fuels. SAF blends

we will take advantage of emissions trading systems over

directly with jet fuel, so aircraft specifications, airport facili-

the long term. Negative emission technologies are CO2

ties, and other infrastructure can be used as-is. While

removal technologies that capture, absorb, store, and

effective as a means to an end, the current global supply

immobilize CO2 in the atmosphere. We plan to work with

of SAF is insufficient.

our partners to diversify our means of CO2 emissions

The first order of business is to create an environment

reductions through these technologies.

for using SAF. For this purpose, we set a medium-term

We feel strongly about meeting our responsibilities in

ANA Group goal to replace 10% or more of fuel used with

resolving global and environmental issues while we con-

SAF by fiscal 2030 to help accelerate the scale-up of SAF

tinue to provide our unique value of connecting people,

production and usage. Under the Sophisticated Methods

goods, and services through our fleet soaring the skies.

of Energy Supply Structures Act*, the Japanese govern-

We will continue to fulfill our social responsibility through

ment indicated its active support of SAF, requiring energy

transparent information disclosure related to our environ-

suppliers to deliver aircraft fuel consisting of at least 10%

mental impact and the progress of our initiatives.

SAF at Japanese airports by 2030.

* Act on the Promotion of Use of Non-Fossil Energy Sources and Effective Use of

Fossil Energy Materials by Energy Suppliers

Management MessageMedium- to Long-Term Value Creation
Environment

1 Reduce CO2 Emissions

Reduce CO2 Emissions from Aircraft Flight Operations

We have developed transition scenarios to achieve the ANA Group environmental goals for fiscal 2050. Our efforts to achieve our

medium- to long-term environmental targets in fiscal 2030 and fiscal 2050 combine four strategic approaches that reflect economic

rationality.

Transition Strategies to Achieve Long-Term Environmental Goals for FY2050

(Ten thousands

of t-CO2)

CO2 emissions in the business-as-usual scenario

The ANA Group Plan, Support for the Japanese

Government’s Target of 60 Million Inbound Visitors,

2,000

Air Transport Action Group*1 Growth Forecast for

International Travel Demand

CO2
Reduction

Operational
Improvements and New
Aircraft Technologies

Use of SAF and Other
Low-Carbon Aviation
Fuels

CO2
Offset

Use of Emission
Trading Schemes

1,500

1,000

500

Effective CO2 emissions after implementation of measures 1), 2), and 3)
Effective CO2 emissions after implementation of all measures, including 4)

2020

2025

2030

2035

2040

2045

CO2
Removal

Use of Negative
Emissions
Technologies*2

2050
(FY)

–500

By 2025

By FY2030

By FY2050

Pursue emissions reductions through

Upgrade to more fuel-efficient aircraft

operational innovations during the ASK/

and use SAF to meet FY2030 targets,

ATK recovery phase. Continue to adopt

while accounting for economic rational-

SAF and switch to fuel-efficient aircraft.

ity and using emissions trading to cover

Accelerate the use of SAF further and

strive to decarbonize most, if not all,

fuels. Use NETs to achieve net zero for

residual CO2 emissions in the life cycle.

FY2030 Medium-Term
and FY2050 Long-Term
Targets

any shortfalls.

FY2030

Net 10% Reduction vs. FY2019

Replace at least 10% of

fuel with SAF

Effective CO2 emissions

Net 10%+ reduction

15%

6.5%
11.5%

FY2050

Net zero

Carbon negative by use of NETs

100%

20%

70%

(FY)

2019

–1%

2030

2050

▲10%

*1 Air Transport Action Group: A research group on sustainability in the airline industry, with involvement from the International Air Transport Association (IATA), aircraft manufacturers, and others
*2 Negative emissions technologies (NETs)

Please visit our corporate website for more:

https://www.ana.co.jp/group/en/csr/environment/

Operational Improvements and New Aircraft Technologies

All departments involved in safe flight operations work together on measures to reduce CO2 emissions in daily operations. In parallel, we

are making steady progress in decarbonization and fuel efficiency improvements, upgrading to more fuel-efficient aircraft as part of the

ANA Group Corporate Strategy.

Improve Flight Operations
Examples of improving fuel efficiency and reducing CO2 emis-

sions include rapid acceleration and climb during takeoff, reduc-

Route Development Project
Each ANA international long-range route has between 10 and

ing thrust reverser usage after landing, single-engine taxiing,

15 flight paths.

engine washing, etc. We disclose the results of these efforts on

In 2020, ANA employees launched the Route Development

our website every month.

Project, believing that an analysis of flight path regulations of

Since fiscal 2023, the Green Operations Committee, led by

each country would uncover routes that avoid headwinds and

flight operations and flight crew divisions, established a system

shorten flight times for routes that tend to exceed scheduled

and framework to revise rules and optimize fuel consumption to

flight times due to headwinds.

reduce CO2 emissions in daily flight operations. We continue to

In addition to considering national regulations, the project

decarbonize our operations through accelerated PDCA cycles.

also considered safety, comfort, on-time performance, and

And through our participation in the Operations Improvement

operations efficiencies when selecting new flight paths. We

and CO2 Reduction Council and Future Air Traffic Systems

submitted finalized flight plans to air traffic control authorities

Council established by the Ministry of Land, Infrastructure,

over each route for approval.

Transport and Tourism, we strive to create environments that

encourage CO2 emissions reductions through operational

improvements. These efforts include innovations in aviation

systems through industry-academia-government collaborations.

Main Outcomes

We contributed to reduced fuel consumption and CO2 emis-

sions through new routes and shortened flight times.

Flight Time
Reduction (Avg.)

Fuel Consumption

CO2 Emissions
Reduction

CO2

For more on ANA Group CO2 emissions reduction results, see:

https://www.ana.co.jp/ja/jp/brand/ana-future-promise/ana-green-jet/co2-reduction/

Houston to Narita
Route
(April 1, 2022-
March 31, 2023)

12minutes

Approx. 175

tons

Approx. 554

tons

Adopt New Aircraft Technologies
As our business recovers and expands, we continue to upgrade

research project to develop hydrogen aircraft and infrastructure,

our fleet to more fuel-efficient aircraft. We expect to achieve a

we share information on advanced technologies and tackle

fuel-efficient aircraft ratio of 85.8% by the end of fiscal 2025. By

issues related to the adoption of hydrogen aircraft. At the same

2030, we will have more than 100 Boeing 787 series aircraft,

time, we collaborate with Boeing on research into electric,

representing more than 35% of our fleet. We plan to raise this

hybrid, hydrogen, and other new propulsion systems.

ratio of fuel-efficient aircraft as early as possible.

And we participate in the Public-Private Committee on New

Fuel-Efficient Aircraft Ratio

Technologies toward Decarbonization of Aircraft, sponsored by

the Ministry of Economy, Trade and Industry, toward the adop-

tion of new technologies.

We are also part of a joint research project with an aircraft

manufacturer on the development of technology to fly on

hydrogen and electric power. Working with Airbus on a joint

70.3%

Approx. 90%

End of FY2019

End of FY2030

Medium- to Long-Term Value Creation

Environment

Shift to Low-Carbon Aviation Fuel, Including Utilizing SAF

The core of the ANA Group strategy to achieve decarbonization is the use of low-carbonization aviation fuels, including SAF.

By fiscal 2030, more than 10% fuel used will be replaced with SAF, and by fiscal 2050 nearly all fuel in use will be low-carbon.

Expanding SAF Procurement Options Overseas

Strengthening Partnerships

• In fiscal 2020, ANA began a strategic alliance with Finland‐based SAF manufacturer NESTE for medium- to long-term supply, pur-

As we must accelerate efforts not only through public-private partnerships but also through our entire supply chain, we are working

chasing and importing SAF on a commercial scale for use on scheduled flights departing from Haneda and Narita airports.

with stakeholders even more closely to establish a supply chain and ensure a stable supply of SAF.

• In December 2022, the ANA Group and the Japan Overseas Infrastructure Investment Corporation for Transport & Urban

Development (JOIN) signed a memorandum of understanding (MOU) to collaborate on a project that aims to manufacture and procure

SAF overseas. Under this MOU, JOIN will expand opportunities to invest in SAF-related projects overseas while ANA will expand SAF

Ensuring a Stable Supply of Domestically Produced SAF

procurement options.

Public-Private Partnerships

The Public-Private Council on Promoting the Adoption of Sustainable Aircraft Fuel (SAF) of the Ministry
of Land, Infrastructure, Transport and Tourism; Ministry of Economy, Trade and Industry; Ministry of the
Environment; Ministry of Agriculture, Forestry and Fisheries
To achieve the ANA Group environmental target of replacing at least 10% of fuel used with SAF by 2030, we must establish a business

environment that allows SAF refueling in Japan. A public-private partnership council, including the relevant ministries and agencies, oil

wholesalers, and other suppliers, confirmed the need to secure sufficient SAF production capacity and supply chain for raw materials

and to establish a system ensuring a stable supply of SAF at internationally competitive prices. In addition, the council confirmed that

the government will consider active support for SAF through regulations targeting 10% of fuel supplied to Japanese airports to be SAF

by 2030.

Specific Initiatives

Procuring SAF Blended in Japan
A proof-of-concept project of the Public-Private Council on Promoting

the Adoption of Sustainable Aircraft Fuel (SAF) led by the Civil Aviation

Bureau of the Ministry of Land, Infrastructure, Transport and Tourism,

imported neat SAF* to blend with jet fuel in Japan. This project fos-

tered a significant advancement in the supply chain for fueling aircraft,

including the clarification of quality control procedures, customs clear-

ance and bonding procedures, and safety in handling. ANA procures

SAF blended in Japan through this project and uses this fuel on

scheduled domestic and international flights departing from Haneda

Issues Related to Domestic Blending

Reduce GHG emissions
and improve economic
efficiencies

Clarify quality
management
processes

Confirm consistency
with various laws and
regulations

• During fiscal 2023, ANA plans to procure SAF produced by LanzaJet in the U.S., produced using exhaust gas from steel mills and oil

refineries, for use on flights departing from the U.S.

• In January 2023, the ANA Group signed a memorandum of understanding with Raven SR of the U.S. and ITOCHU Corporation for

SAF procurement. Raven SR manufactures SAF from municipal solid waste and other waste materials, which means a stable supply

of SAF in certain quantities should be possible in the future. ANA is considering purchasing this SAF for use on flights departing the

U.S. after 2025.

Encouraging the Use of Synthetic Fuels

Biomass, the primary raw material for SAF, is already used commercially. This raw material could become scarce in the future, requiring

the rapid commercialization of synthetic fuels over the medium to long term. Synthetic fuels are artificial fuels made by synthesizing CO2

and hydrogen.

In September 2021, ANA and six other companies collaborated on a proof-of-concept project that uses carbon and hydrogen sepa-

rated and recovered from CO2 emission sources and the atmosphere as raw materials to produce SAF using a technology that synthe-

sizes liquid hydrocarbons through a catalytic reaction.

In September 2022, the Ministry of Economy, Trade and Industry, the Ministry of Land, Infrastructure, Transport and Tourism, and

other supply-side and demand-side entities (automobile industry, shipping industry, and aviation industry) established the Public-Private

Council on the Promotion of Synthetic Fuel (E-fuel). This council addresses technical development and institutional issues under an

integrated public-private partnership aiming for commercialization of e-fuel by the early 2030s.

and Narita airports.

* SAF before blending with jet fuel

Promoting SAF and Reducing CO2 Emissions in the Supply Chain

ACT FOR SKY, an Inter-Industry Collaboration to Promote Domestic SAF
ACT FOR SKY is an all-Japan voluntary organization launched on March 2, 2022, consisting of 29 companies (as of July 2023), 20 of

which are involved directly in domestically produced SAF as a business and represent the main actors in building the SAF supply chain.

The other nine companies represent entities required to build the supply chain for domestically produced SAF.

The organization aims to create a cross-sector movement of collaboration and action, transcending industry boundaries to commer-

cialize, promote, and expand domestically produced SAF toward carbon-neutral skies.

For more details regarding ACT FOR SKY (in Japanese only), please visit:

https://actforsky.jp

Participation in the Ministry of the Environment Decarbonization x Reconstruction Town Development
Platform
The ANA Group participates in the Decarbonization x Reconstruction Town Development Platform and the platform’s Working Group on

Decarbonized Fuel, projects established recently by the Ministry of the Environment. We are helping with the recovery in selected areas

through the use of low-carbon circular agriculture, biomass, and other materials for local production and local consumption of SAF and

other decarbonized fuels, as well as the investigation of business models to solve issues in this area.

SAF Flight Initiative
In September 2021, ANA, together with companies that use airplanes for business trips and cargo transportation, launched the SAF

Flight Initiative. This partnership is a program aiming for a sustainable future by visualizing CO2 emissions (Scope 3) throughout the

supply chain and promoting the widespread use of SAF. Under this program, partners bear a portion of the costs related to SAF, and

ANA issues a certificate of CO2 emissions reductions resulting from SAF usage. We received the 2022 Nikkei Excellent Products and

Services Award for this business solution that, among other things, contributes to the achievement of Scope 3 reduction targets for

partner companies and improves corporate value. As of March 2023, 13 companies have participated in the program, and we continue

to invite new companies to join.

Medium- to Long-Term Value Creation

Environment

Use of Emission Trading Schemes

We intend to reduce CO2 emissions from flight operations through operational improvements, technological aircraft innovations, and

low-carbon aviation fuels such as SAF. In the short to medium term, we are looking into the use of CO2 emissions trading schemes in

consideration of business continuity.

We plan to use high-quality carbon credits that mitigate the impact on climate change, biodiversity, and human rights, while also

offering benefits such as economic contributions to local communities.

Utilization of Negative Emissions Technologies (NETs)

For the remaining emissions not covered by SAF and other fuel reductions, we intend to achieve net zero emissions by 2050 through

NETs. These technologies include direct air capture (DAC), which captures and removes CO2 directly from the atmosphere.

In March 2022, ANA signed a basic agreement with Climeworks, a Swiss start-up company working on DAC. Under this agreement,

we began researching high-quality, permanent CO2 removal technology. In August 2023, we became the first airline in the world to sign

a procurement contract with 1PointFive of the U.S.. 1PointFive is constructing a DAC plant in Texas, U.S.A., which is expected to begin

commercial operation by the end of 2025. ANA plans to procure more than 30,000 tons of carbon dioxide removal (CDR) credits over

three years beginning 2025.

DAC technology captures and removes large amounts of CO2 directly from the atmosphere and is an essential approach that diversi-

fies the means to address CO2 emissions reduction in the difficult-to-decarbonize aviation industry. We will continue efforts to pursue

DAC technology and industry development, diversifying decarbonization measures in our transition strategy to achieve the ANA Group’s

medium- and long-term environmental goals.

DAC Conceptual Diagram

Atmosphere

Air

CO2

Absorption via
Solution, Etc.

Adsorption via Porous
Materials

Membrane Separation

1PointFive is committed to reducing

global temperature rise by 1.5 °C by

2050 through decarbonization solutions,

including Carbon Engineering’s DAC

technology, AIR TO FUELS™ technol-

ogy, and geological storage hubs.

AIR TO FUELS™ is a registered

trademark of Carbon Engineering Ltd.

Underground Storage and Semi-Permanent
CO2 Solidification

Use as a Raw Material for Synthetic Fuel (SAF)

DAC Facility

1PointFive’s DAC Plant (Courtesy of 1PointFive)

Initiatives to Reduce Environmental Impact

Carbon Offset Program
Since fiscal 2019, the ANA Group offers the ANA Carbon Offset Program for each class on

domestic and international routes. This program is a mechanism that provides customers

with opportunities to offset the amount of CO2 emitted by their aircraft. Our selection of

offset programs are based on global certification standards.

For more details, please visit:

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 corporate

stance that emphasizes social responsibility, and we continue to work toward the creation of sustainable

societies. In March 2022, we updated our Eco-First Promise for protecting the global environment as an

environmentally advanced company to reflect our medium- and long-term environmental goals.

For the Eco-First Promise (in Japanese only), please visit:

https://www.ana.co.jp/group/csr/environment/pdf/eco_first_2203.pdf

Reduce CO2 Emissions from All Non-Aircraft Flight Operations

The ANA Group implements appropriate energy management using our energy management system ANA Eiims based on our own

Energy Management Standard. ANA and ANA Foods (specified business operators under the Act on the Rational Use of Energy)

achieved energy reductions of 1% or more of fiscal 2021 targets, receiving 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. ANA has received S Class certification for

eight consecutive years since the establishment of the classification system. 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

Vehicle Fuel

We will systematically upgrade our facilities and equipment to energy-saving

devices.

ANA Blue Base, the ANA Group comprehensive training center, ANA Tonomachi

Business Center, and ANA TELEMART Nagasaki Branch Call Center have installed

solar panels, generating electricity from solar power.

In addition, since fiscal 2020, some of our own facilities in the Osaka and

Kyushu areas have been purchasing an amount of CO2-free energy from electric

power companies. Since fiscal 2022, we have been introducing renewable energy

and started use at our Shiodome Office. We are now working to introduce renew-

able energy across the ANA Group.

Solar panels at ANA Blue Base

We are upgrading our airport vehicles to hybrid vehicles (HVs), electric vehicles

(EVs), fuel cell vehicles (FCVs), etc., in stages as appropriate. The ANA Group is

the first company in Japan to introduce remote-controlled EVs (manufactured by

Mototok of Germany) to tow passenger aircraft at airports. Since introducing the

vehicles at Saga Airport in 2019, we have placed others into operation at several

airports in Japan. In addition to contributing to the reduction of environmental

impact, this system allows simpler remote control operation compared to conven-

tional vehicles, leading to more efficient operations.

Pushback using Mototok EVs

Medium- to Long-Term Value Creation

Environment

For more details regarding biodiversity conservation, please visit:

https://www.ana.co.jp/group/en/csr/regional_creation/biodiversity/

2 Reduce Resource Waste Ratio (Plastics, Paper, etc.)

4 Biodiversity Conservation

The ANA Group pursues the 3Rs (Reduce, Reuse, Recycle) + R (Renewable) to reduce our resource waste ratio. We encourage use

Adopted in December 2022, the Kunming-Montreal Biodiversity Framework (GBF*1) included new global biodiversity goals. Under this

reduction and recycling, especially of plastics and paper.

Reduce the Use of Plastics
We continue to make progress in replacing plastic products used in airport lounges and on flights with eco-friendly materials. In fiscal

2022, we replaced single-use plastic with paper for in-flight meal containers in premium class on domestic flights. We also switched

from single-use to reusable containers for soup bowls and other products, reducing plastic waste by approximately 158 tons per year

compared to fiscal 2019.

Major Initiatives

Establishing a Resource-Recycling Scheme for Air Cargo Plastic Film

ANA launched a joint recycling scheme

with Sojitz Pla-Net Corporation to

collect used plastic air cargo film for

recycling into products used by ANA.

ANA collects used air cargo

plastic film at airports in Japan,

removes adhesive materials, and

Recovery

compresses the film.

Separation
and
Compression

Recovery

Circular
Recycling

Use

New Product

Sojitz Pla-Net Corporation

Sojitz Pla-Net collects the

Recycling

compressed plastic film and

recycles the film into pellets. The

company then delivers pellets to

manufacturers of plastic goods

used by ANA.

3 Reduce Food Waste Ratio (In-Flight / Airport Lounge Meals, etc.)

The ANA Group is working to reduce our food waste ratio, such as in-flight meals.

Food Loss Initiatives
ANA launched a new service on international flights that allows passengers to choose a lighter meal service or no meal service for more

freedom and comfort in-flight. In addition to offering options that meet customer needs, we work with customers to eliminate food

waste by reducing the number of in-flight meals discarded without being served.

Major Initiatives

ANA Future Promise

In June 2021, the ANA Group announced ANA Future Promise, a movement toward continued corporate growth to continue to the

achievement of the SDGs together with our customers and society (Promise), aiming for sustainable growth (Future). In recognition of

our efforts, we received the Minister of Land, Infrastructure, Transport and Tourism Award at the

31st Grand Prize for the Global Environment Awards. The Grand Prize for the Global Environment

Awards was established in 1992 by the Fuji Sankei Group to encourage promoting industrial devel-

opment in harmony with the global environment.

In October 2022, we began flying special-livery aircraft as a symbol of the ANA Future Promise

and as a means to put activities into practice. We have introduced numerous measures on a trial

basis, including the use of in-flight service items made from sustainable materials (certain in-flight

meal containers and cabin amenities), vegan leather headrest covers made from plant-derived

materials, and the testing of riblet film applied to the surface of aircraft. We intend to expand the

most effective measures to other aircraft and routes.

For more details, please visit our official website:

https://www.ana.co.jp/en/jp/brand/
ana-future-promise/

framework, the airline industry is responsible for 2030 goals, particularly goals to prevent illegal wildlife trade, minimize the impact of

climate change on biodiversity, and reduce food waste. The ANA Group discloses our policies and systems to address biodiversity

conservation. We strive to mitigate our impact on biodiversity through our business activities and contribute to the conservation of

biodiversity.

*1 Global Biodiversity Framework

Initiatives through Business Activities

| Avoid and Minimize | Preventing Wildlife Trafficking

In March 2018, ANA became the first Japanese airline to sign the Buckingham Palace Declaration, which aims to eradicate wildlife trafficking

as recommended by IATA. Since 2018, we have conducted annual seminars on border control measures in collaboration with the interna-

tional NGO TRAFFIC*2. These seminars are part of our educational activities to prevent wildlife trafficking.

A total of 840 people from ANA Group companies, including airport personnel and overseas branches, have participated in these events.

*2 TRAFFIC: An international NGO that surveys and monitors wildlife trade. This NGO was established as a joint project of the World Wildlife Fund and International

Union for Conservation of Nature, and the group operates through a worldwide network of bases in 10 regions.

| Minimize | Food Residue Recycling System

ANA Catering Service Co., Ltd., which produces in-flight meals for ANA, recycles 100% of food residue from the preparation of in-flight meals

for use as compost and feed. The Ministry of Agriculture, Forestry and Fisheries, under the Act on Promotion of Recycling and Related

Activities for Treatment of Cyclical Food Resources, approved the company’s recycling system. This system uses vegetables (soft kale) grown

using compost from animal and plant residues discharged from the Narita Plant as ingredients for in-flight meals.

In this way, the company provides chemical-free, safe vegetables for in-flight meals produced using safe soil consisting of compost

derived from cooking residue. At the same time, the company contributes to the reduction of waste and conservation of biodiversity through

food recycling.

| Restoration | Restoration of Farmland through the Farm Project

ANA Akindo oversees the Farm Project, which revitalizes abandoned mandarin orange farms and supports mandarin production, processing,

distribution, and sales. The Farm Project helps solve problems such as pest and weed infestation, bird and animal damage, and disaster

risks caused by the shrinkage of farmland and increased farmland abandonment.

The Farm Project promotes green tourism in cooperation with local governments and farmers through the planning and management of

monitoring tours, workcations, and agricultural experiences to conserve biodiversity and restore farms. One such example is iyokan seedling

planting at the Ishimaru Farm, a local farm operator.

Collaborations with Stakeholders

The ANA Group participates in the Keidanren

Committee on Nature Conservation as a standing

committee member. We also endorse the Keidanren

Initiative for Biodiversity Conservation.

The ANA Group participates in the 30by30 Alliance

for Biodiversity, which pursues efforts to achieve the

30by30 emissions targets.

Team Chura Sango (Coral Reef Conservation Project to Preserve Tourism Resources)

In 2004, ANA and other companies in and outside Okinawa launched Team Chura Sango to support the coral conservation activities of the

Onna Village Fisheries Cooperative in Manza Bay, Okinawa Prefecture. In 2024, the team will observe its 20th anniversary. The project pro-

tects coral from bleaching caused by rising sea temperatures and feeding damage caused by massive outbreaks of crown-of-thorns starfish,

thereby preserving the ecosystem of Manza Bay. With the support of the Ministry of the Environment, Okinawa Prefecture, Onna Village, and

other government agencies, the team participates in coral seedling production and planting programs held five times a year. As of fiscal

2022, 17,839 coral seedlings have been planted thanks to the participation of 4,177 people. In recognition of these activities, the project

received the Fisheries Agency Director’s Award in the 42nd National Convention for the Development of an Abundantly Productive Sea.

Medium- to Long-Term Value Creation

Environment

Disclosures in Line with the
TCFD Recommendations

In March 2019, the ANA Group became the first Japanese airline to endorse the recommendations of the Task Force on Climate-related

Financial Disclosures (TCFD, established by the Financial Stability Board. We disclose information in accordance with the four items

required by the TCFD recommendations: Governance, Strategy, Risk Management, and Metrics and Targets. We will continue to

enhance our disclosure content in line with the TCFD framework.

Governance
The Group ESG Management Promotion Committee convenes

Board of Directors and Board of Corporate Auditors

four times a year to hold discussions on important policies and

Supervision

Proposal / Report

Supervision

Submit agenda /
Report

measures related to environmental issues such as climate

change. This committee is overseen by the President & Chief

ANA HOLDINGS INC.
President & Chief Executive Officer

Executive Officer and chaired by the Chief ESG Promotion

Overall management

Group Management
Committee

Submit agenda /
Report

Officer (CEPO), the director in charge of group ESG manage-

Group ESG Management Promotion Committee

ment. Under the committee, we also established the Eco-First

Subcommittee (related to aircraft operations) and the Ground

Energy Subcommittee (related to ground energy other than

aircraft operations). These subcommittees report and discuss

CO2 reduction measures, initiatives, and progress. The following

important environmental matters related to corporate strategy

are discussed at the Group Management Committee and sub-

mitted to the Board of Directors.

Furthermore, ESG management promotion status is objec-

tively and multilaterally monitored to achieve sustainable growth

as a company and enhance corporate value over the medium

to long term. Here, we employ evaluation indicators such as

CO2 emissions volume and external ESG evaluation, which are

also reflected in officer remuneration.

Examples of Climate Change Issues Brought Before/Reported to
the Board of Directors
· Establishment of various environmental policies and medium- to long-

term environmental targets, as well as their annual results

· Disclosures in line with TCFD recommendations
· Formulation of a transition scenario to achieve medium-to long-term

environmental targets

· Incorporation of climate change response into the FY2023-25 ANA

Group Corporate Strategy

· Progress on climate change initiatives

Risk Management
Based on the basic policies determined by the Board of

Directors, the ANA Group Total Risk Management Regulations

provide the basic terms of the group’s risk management

system. Under these regulations, the Group ESG Management

Promotion Committee develops, implements, and monitors

progress of basic policies. Risks related to climate change are

also handled as key issues within the overall risk management

framework.

Chairman: Chief ESG Promotion Officer (CEPO)
Committee Members: General managers of each business and corporate division, ESG Promotion

Secretariat: Corporate Sustainability, General Administration, General Administration, Legal &

Officer (EPO), etc.

Insurance

Eco-First Subcommittee
Ground Energy Subcommittee

Chairman: Chief Sustainability Officer

(CSO)

Participants: Managers from each

related division

Secretariat: Corporate Sustainability

Instruction

Collaborations

Environment Officer

Instruction /
Supervision

ESG Promotion Officer (EPO)
(Group company directors
and executive officers
overseeing ESG
management)

ESG Promotion Leader (EPL)

Group Companies and Departments

Metrics and Targets
In 2021, the ANA Group formulated the 2030 Medium-Term

Environmental Targets and the 2050 Long-Term Environmental

Goals. In May 2023, we updated our 2030 Medium-Term

Environmental Targets. We are currently strengthening our

efforts to achieve our goal of net zero CO2 emissions by

fiscal 2050.

FY2030 Targets

FY2050 Goals

Aircraft

Reduce CO2
Emissions

Net 10%+ reduction vs.
FY2019
Replace 10% or more of
fuel used with SAF

Non-Aircraft

33%+ reduction
vs. FY2019

Net zero

Please refer to P.86 for more on the risk management structure.

Please refer to P.60 for more on fiscal 2022 results.

Please visit our corporate website for more on disclosure based on TCFD recommendations:

https://www.ana.co.jp/group/en/csr/environment/goal/

Strategy
We analyzed scenarios based on the 4°C and 1.5°C scenarios

4°C Scenario:

A scenario in which, by not taking measures to combat global warming

provided by the United Nations Intergovernmental Panel on

beyond the status quo, temperatures rise about 4°C above pre-industrial

Climate Change (IPCC) and the International Energy Agency

(IEA). Through this, we identify the risks and opportunities of

climate change on our group, assess their financial impact, and

explore countermeasures. The analysis covers the period from

levels, and risks related to physical changes caused by climate change

become apparent

1.5°C Scenario:

A scenario in which a fundamental system transition is achieved, resulting in

a temperature increase of less than 1.5°C above preindustrial levels, and

fiscal 2030 to fiscal 2050, as set forth in the ANA Group’s

risks related to the transition to a low-carbon economy become apparent

medium- to long-term environmental targets.

See P.62 for our transition strategy

Physical

Risks

Increasing
Severity and
Frequency of
Extreme
Weather

Changes in
Rainfall and
Weather
Patterns

Description of Opportunity / Risk

Financial
Impact*1

Action Plans

• Increased operational costs due to severe natural disasters
• Increased cost of restoration from damage to aircraft and facilities

due to disasters

• Development of data observation through aircraft
• Decreased revenues due to difficulty in maintaining flight operations

• Establishing a more advanced BCP
• Upgrading to disaster-resistant facilities, equipment, etc.
• Collaborating in research with JAXA
• Determining destinations, number of flights, etc., and

Large

appropriate reflection in business plans

to affected areas

Medium

Actions to Reduce CO2 Emissions (Aircraft)

• Concern about increased costs due to higher SAF prices until
around 2040 and decreased revenues due to restricted flight
operations as a result of insufficient procurement

—SAF

• Differentiating through strategic purchases, contracts, and invest-

ments to benefit from priority procurement and stable supply

• Making strategic purchase agreements
• Strategically investing in the establishment of a system for

domestic mass production of SAF, and strengthening
public-private and inter-industry collaboration to establish the
supply chain

• Partially compensating for SAF purchase costs through

development of schemes such as the SAF Flight Initiative

— New

Technology

Opportunities

• Increased cost of introducing next-generation aircraft (hydrogen,

electricity, etc.)

Large

• Engaging with policymakers and other relevant parties to

improve airport infrastructure

• Reduced fuel costs due to fuel efficiency improvements over the

medium to long term, and creation of opportunities for technological
innovation and priority procurement by investing in DAC*2 CO2
removal technologies

• Participating in joint research projects with aircraft manufac-
turers to develop aircrafts incorporating new technologies

• Strategically investing in the introduction of high quality,

permanent CO2 removal technology

Risks

—Credit

• Increased costs due to the use of credits (price increases due to

excess demand for emission credits / increased offsetting)

• Procuring CORSIA eligible and high-quality credits
• Minimizing cost impact through an optimum combination of

SAF and credits

Actions to Reduce CO2 Emissions (Non-Aircraft)

Transition

• Increased costs due to replacement with ZEVs*4
• Reduction in fuel costs and offset costs and labor-saving in airport
operations due to the development of new technologies such as
unmanned autonomous driving

Vehicle*3 Fuel
(Diesel oil)

• Continuously engaging in and collaborating with policymak-
ers and other relevant business operators to promote the
shift to ZEVs and improve airport infrastructure

Medium

• Procurement and construction of a supply chain for alterna-

tive fuels such as next-generation biofuels

• Introduction of experimental tests and remote-controlled EVs

to switch airport vehicles to EVs

Litigation /
Fines / Taxation

• Penalties and fines for failure to comply with laws and regulations in

• Appropriately responding to and disclosing information for

each country

climate change

• Pressure from stakeholders to delay climate action
• Increased costs as a result of higher prices due to the introduction

of carbon pricing (carbon taxes, emissions trading)

Medium

• Engaging with national governments continuously, in

collaboration with industries and other organizations, for
relaxation of regulations and tax systems

• Securing talent from a younger environmentally sensitive generation
and increasing sales due to securing customer trust as a result of
proactively addressing climate change to improve brand value

• Growing new businesses that do not require physical travel
• Increased demand for the reduction of corporate Scope 3 emissions

(business trips and cargo transportation)

Medium

Changes in
Consumer
Awareness and
Preferences

• Appropriately responding to and disclosing information for

climate change

• Identifying needs through ongoing dialogue with society and

reflecting these needs in strategies

• Developing measures that move forward while acquiring the

understanding and cooperation of customers

• Diversifying business portfolio
• Collaborating with various stakeholders and strategically

investing in new business growth (avatars, electric air taxi,
drone logistics services)

Opportunities

Financing

ment through proactively responding to climate change ahead of the
market

Medium

and responding appropriately

• Information disclosure in accordance with international

• Successfully financing through loans and incorporating ESG invest-

• Identifying needs through ongoing dialogue with investors

frameworks

*1 Large: ¥10 billion or more per year; Medium: ¥1 billion to ¥10 billion per year; Small: less than ¥1 billion per year
*2 Direct Air Capture (DAC): Technology to capture CO2 directly from the atmosphere
*3 Airport ground handling vehicles
*4 Zero Emission Vehicles: Vehicles that do not emit CO2 or other emissions during operation (EVs, FCVs)

Medium- to Long-Term Value CreationMateriality

Regional Revitalization

Basic Approach

Regional revitalization is an initiative to overcome regional issues such as declining populations, low birthrates, aging demographics, and

shrinking economies, as well as to ensure that outlying regions will grow in the future.

Beyond air transportation, the ANA Group aims to solve regional issues while creating new encounters and connections among

people, goods, and experiences. We seek to grow regional fan bases, expanding the number of people with whom we interact and

build relationships.

Working in unison with local communities is crucial to solving issues. We create deeper ties with local communities by building close

relationships with local businesses coordinating with those branches nationwide that have regional operations, as well as through coop-

erative agreements with local governments throughout Japan.

Based on the relationships of trust we build with local communities through our Air Transportation and Travel Services businesses, we

take on the challenge of regional revitalization by leveraging the strengths and assets of the ANA Group while making the most of the

charms of each region.

Implementation Structure

The ANA Akindo Regional Revitalization Department, which coordinates with 33 branches nationwide across Japan that are engaged in

community-based activities, plays a central role in integrating the initiatives of group companies organically, working with the ANA Group

to create value that solves regional issues.

Regional Governments / DMO / Regional Businesses

Government Agencies

33 Branches Nationwide
• Regional Group General

Information Desk

ANA Akindo Regional Revitalization
Department
• Core Regional Revitalization

Organization

• ANA Group Facilitation and

Coordination

ANA Holdings, Inc. (Regional Revitalization Officer)

ANA X

Travel package planning and sale, tourist promotions
through apps, digital promotions, crowdfunding

ALL NIPPON
AIRWAYS TRADING

Sales of goods through airport shops and expansion of
sales channels for locally themed products, etc.

ANA Department
Overseas Offices

Promotions to attract customers to areas throughout
Japan and promotions overseas to attract visitors to Japan

Other Group
Companies

Integrated regional revitalization

1 Expanding Regional Development in Cooperation with Local Governments

Case 1

Expanding ANA Hometown Tax Donation

Regional
Issues
Addressed

Solution
Methods

• Insufficient financial resources due to declining birthrates, aging

• Increase the number of people involved in the community through

populations, and declining local economies

ANA Group efforts

• Failure to communicate the attraction of local products, etc., to

outside consumers

• Support local governments in securing new financial resources through donations made through

the ANA Hometown Tax Donation website

• Communicate information and distribute local products, etc., through hometown tax donations
• Encourage travel and attract visitors through hometown tax donations

Case 2

Pursue Grants and Other Regional Revitalization Projects

• Lack of awareness of regional attractions and insufficient content to
encourage longer stays from the perspective of inbound travelers

• Lack of workers / people willing to take over businesses due to

declining birthrates and aging population

• Decrease in tourist consumption with fewer tourists

• Implement initiatives to attract people through local government grants and other resources
• Leverage the ANA route network to attract inbound travelers
• Develop and promote tourism-related content focused on specific themes
• Improve and foster work-study environments in rural areas to accommodate new ways of working

Regional
Issues
Addressed

Solution
Methods

For more details, please visit our corporate website:

https://www.ana.co.jp/group/en/csr/regional_creation/regional_revitalization/

2 Resolving Regional Issues through Innovation

ANA performed a bottom-up redesign of the Airport Access Navi route service, launching Tabi CUBE as a new service on July 31, 2023.

Tabi CUBE is our platform for mobility services (MaaS). Through this platform, we intend to expand the scope of our mobility business,

respond to diverse mobility needs, and resolve issues, offering a universal and seamless mobility experi-

ence for a society in which people enjoy travel and travel safely.

For more details (in Japanese only), please visit:

https://www.anahd.co.jp/group/pr/202307/20230731-5.html

3 Regional Revitalization through Social Contribution and Resolving Social Issues

Case 1

ANA Farm Project

*ANA continues to make progress in this project as a prime example of ANA Group efforts to solve regional issues

Regional
Issues
Addressed

Solution
Methods

• Growing amount of abandoned land due to the aging of farmers and lack of successors
• Gaining recognition of and expanding sales channels for Ehime products (citrus fruits)

• ANA works with local farmers, governments, and regional banks, etc., to operate a mandarin orange orchard using

abandoned farmland

• Support the Production ➝ Processing ➝ Distribution ➝ Sales chain
• Expand sales channels and branding for prefectural products utilizing ANA resources; food processing utilizing the

resources and expertise of ANA Catering, etc.

• Contribute to the revitalization of primary industries, expand interchange. and build structures to prevent farmland

Regional
Issues
Addressed

Solution
Methods

• Shortage of secondary industries in the prefecture other than tourism
• Lack of employment opportunities for local workers

• MRO Japan began conducting tours of its aircraft maintenance shop at Naha Airport in May 2022 to increase aware-

ness of Naha Airport and communicate its appeal as a new tourist resource.

• The company will continue to refine its content offerings to expand the number of interactions and relationships.

*1 MRO Japan Co., Ltd.: Japan’s only company specializing in aircraft maintenance. The company operates in cooperation with Okinawa

Prefecture and local businesses to promote local industry.

New Board Member

The ANA Group reorganized airline ticketing and travel services, handled formerly by ANA Sales Co., Ltd., by moving travel

services to ANA X and expanding into the regional revitalization business by establishing ANA Akindo in April 2021.

We will leverage the strengths of the ANA Group and work with local communities, co-creating attractive regional revitalization

to encourage greater human interactions and relationships. ANA Akindo contributes to the ANA Group revenue platform by tying

activities to the creation of new value.

And we will do our utmost to achieve this vision. Look forward to great things in the future.

HARA Yuzo

Senior Executive Officer,
Group Regional Revitalization
President, ANA Akindo
Co., Ltd.

ANA Business
Solutions

ANA Strategic
Research Institute

Deployment
across the
group

Provide ANA Group expertise (education, training, etc.)

from being abandoned

Human resources development, consulting, surveys

ANA Cargo

Expand exports of regional, local products

Case 2

Tour of MRO Japan’s Aircraft Maintenance Plant (Okinawa, Japan)

Medium- to Long-Term Value CreationFoundations for Sustainable
Corporate Value Enhancement

We work with ANA Group stakeholders, aiming to share a variety of values

that lead to a world of wonder. Today, we are strengthening a foundation for the

appropriate allocation of management resources and nimble decision-making.

74
74

Safety

Strengthening Safety as a Business Foundation, Passing Down Safety as a Culture

Passing On a Culture of Safety and Nurturing Human Resources

Safety is the unequivocal mission of every business in the ANA Group.

Solid Approach to Safety

Safety is the absolute value underlying every ANA Group corporate activity and the foundation of everything we do. Our dedication to

To ensure safety, we must report and share incidents promptly, tying these incidents to prevention or the prevention of reoccurrence.

To this end, we engage in initiatives tailored to each workplace, encouraging safety-oriented actions in each individual and fostering a

culture of safety.

In addition, the ANA Group engages in ongoing education and training programs for all employees to preserve the memory of past

accidents and hijackings in our pursuit of safety. We utilize face-to-face and online methods to pass on a broader and deeper safety

safety extends to every part of our group businesses, even beyond our aircraft operations, including cargo, food services, and informa-

culture.

tion. Our everyday efforts to improve safety and our conscientious response to customer expectations build confidence and trust with

society.

An environment of mutual understanding and trust forms relationships among employees across various job descriptions to support

Major Initiatives

safe aircraft operations and other aspects of the ANA Group business. In every workplace, we post the ANA Group Safety Principles

and Course of ANA Group Safety Action, which are pledges shared by all ANA Group employees.

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.

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.

(3) Address any questions and sincerely accept the opinions of others.

(4) Information will be accurately reported and shared in a timely manner.

(5) Continuous self-improvement for prevention and avoiding reoccurrence.

(6) Lessons learned from experiences and increased skills for risk awareness.

ANA Group Medium-Term Policy for Aviation Safety and Security

We formulated the ANA Group Medium-Term Policy for Aviation Safety and Security covering fiscal years 2023 through 2025. The pur-

pose of this policy is to maintain basic quality and safety for growth, even during this period of recovery in air travel demand.

We continue to face a changing environment and changing work styles in the airline industry in the wake of the COVID-19 pandemic.

As we maintain firm aviation safety and security, we will also create methods to make advancements in this area.

Safety and security are always the priority of the ANA Group, and we intend to strengthen our systems further through five key concepts.

Safety

i
i

S
S
a
a
f
f
e
e
t
t
y
y
R
R
s
s
k
k
M
M
a
a
n
n
a
a
g
g
e
e
m
m
e
e
n
n
t
t

Flight
Flight
operations
operations

Customer
Customer

Employees
Employees
(Workers)
(Workers)

C
o
m
m
u
n
c
a
t
i
o
n

Safety
Safety
and
and
Security
Security

ESG

Sense of
Safety

Key Concepts

1. Foster a positive safety and security culture

2. Develop and maintain skills to support safety

3. Strengthen change management

4. Evolve safety risk management

5. Restructure our aviation security management system

The sunflower represents aviation safety, and the fence represents aviation security to

protect the sunflowers from outside agents.

The sunflower and fence stand on the soil that represents our culture of safety and

Flexibility

security. We believe that the most important nutrients are the following four cultures.

Safety Policy
Safety Policy
and
and
Targets
Targets

Just Culture

Positive
Safety Culture

Learning

Aviation Security Security Risks Management

Reporting

• Just Culture

• Reporting Culture

• Learning Culture

• Flexibility Culture

The ANA Group will strive as one in our unending pursuit of safety and security.

Education and Training at the ANA Group Safety Education Center (ASEC)

Total cumulative number of participants over the past three years: 34,443 (including online participation)

ASEC, located in the ANA Group Training Center (ANA Blue Base), provides safety education in

which participants learn actively, using the knowledge learned at ASEC to practice specific safe

behaviors in the workplace. Online training programs are also available, and all ANA Group

employees worldwide have been taking courses. We also accept visitors from outside the ANA

Group and share the ANA Group safety initiatives and philosophy with many people.

Emergency Aircraft Evacuation Training

Total cumulative number of participants over the past three years: 17,646

This training is mandatory for all group employees to support cabin attendants in assisting and

guiding passengers in the event of an aircraft emergency and fostering general safety awareness.

In addition, participants discuss actions in emergency situations and reflect on their behavior as

ANA Group employees to enhance safety awareness.

Safety Forum Conducted by Senior Management

Total cumulative number of participants over the past three years: 7,089

The ANA president & CEO and the director in charge of safety at ANA delivered safety-related

lectures and engaged in dialogue with employees.

Discussions addressed topics on safety culture and aviation security, and ANA Group employees

and management shared ideas on safety- and security-related concepts and behavior.

Initiatives for Aviation Safety and Security Promotion Month

Number of forums: 4 Cumulative participants: 1,440 (TALK SAFE)

We designated July as Aviation Safety and Security Promotion Month. During the month, we

reviewed and held a silent observance for past accidents and incidents. We also reaffirmed our

commitment to preventing or preventing the recurrence of problems, including risk prediction and

change management, to improve safety quality throughout the ANA Group. In particular, the annual

TALK SAFE event helps foster a culture of safety and security by sharing examples of workplace-

based initiatives and holding discussions with management.

Foundations for Sustainable Corporate Value Enhancement

Safety

Aviation Security

Given the ongoing recovery of airline demand in the post-COVID-19 era, the future growth in demand

for inbound travel to Japan, and political instability overseas, we understand the need to strengthen

the infrastructure that supports security further. We face a pressing need to conduct security inspec-

tions more smoothly and reliably than ever before.

Last year, through the Scheduled Airlines Association of Japan, we considered audio / verbal

measures to control the carrying of prohibited or restricted items and hazardous materials on aircraft

at interactions prior to security checkpoints. With the understanding and cooperation of public trans-

portation authorities (monorail, train, bus) linking to airports, we introduced an industry first in making

verbal announcements within each transportation mode.

We began this initiative at Haneda Airport, and are expanding the program to certain other air-

ports. We will continue to address aviation security issues at both the individual and industry levels.

Ensuring Safety in Non-Air Operations

Food Safety
The ANA Group operates the ANA Catering Quality Program (ACQP) from the three perspectives:

(1) Food safety for hygienic in-flight and lounge meals; (2) Delicious quality for food and beverages

served; and (3) Safe and accurate loading and unloading of foods on and off aircraft. Qualified audi-

tors and chefs make regular visits to our catering contractors in Japan and around the world, offering

guidance on improvements based on ANA’s own strict hygiene standards. We also engage regular

external hygiene audits from third parties based on international standards. We report the results of

these audits to relevant internal departments in a timely manner to maintain and improve quality. In

addition, the status of food safety management is reported regularly at board meetings.

Information Security
The ANA Group works continuously to ensure the secure handling of information, including personal

customer information, as a management issue equally important to flight operations. System security

measures include data encryption, perimeter defense, anti-virus, and endpoint security to achieve

defense in depth. In light of our shift to a cloud environment, we also adopted Attack Surface

Management, which monitors information accessible from the internet on a 24/7/365 basis, investi-

gating and launching countermeasures as necessary. In addition, we created the ANA Group

Information Security Management Manual for employees in accordance with ISO 27001, and apply

the manual to the entire group. We also use handbooks, e-learning, training, and email newsletters to

ensure this manual is widely understood throughout the group, and conduct audits to check compli-

ance. In this way, we are strengthening our information management system and reducing the risk of

information leaks from both tangible and intangible perspectives.

Further, we comply with Japan’s Act on the Protection of Personal Information, the EU General

Data Protection Regulation (GDPR), and other laws and regulations enacted or revised in various

countries regarding the protection of personal information. We publish our privacy policy on our

corporate website as appropriate.

These initiatives are regularly reported to the management of the entire group through the Group

ESG Management Promotion Committee to raise awareness.

Front-Line Initiatives to Ensure Safe Operations
We are building mechanisms leading to operation safety based on input from employees involved in operations.

Preventing Irregular Operations by Visualizing

Wind Shear Structure

Low-Level Wind Information
Aircraft landings are affected significantly by low-level wind below

3,000 feet. Sudden changes in low-level wind speed (wind shear)

may cause instability in aircraft position when landing. To ensure

safety, pilots may turn the aircraft back to the point of departure

or reroute to a different destination.

Obtaining stable data on low-level winds has been difficult due

to the characteristics of observation equipment available.

Obtaining general situation reports from a flight crew after landing

takes time and effort for ground staff to communicate to following

flights. In addition, making appropriate operational decisions

based on such information requires proficiency in operations and

many years of experience.

Runway

1. Normal entry

2. Headwind increases dramatically, causing instability in aircraft speed

and path

Given these conditions, we focused on the fact that aircraft in

3. Change from a headwind to a sudden tailwind

operation have traditionally observed a variety of data. At the

4. A significant loss of speed and altitude may result in difficulty landing in

initiative of an employee involved in operations management, we

a stable position

considered an automated system to extract and visualize low-

level wind data exceeding a certain value, making the information

available on the ground in a timely manner.

During our consideration, we held discussions not only in the

operations department but also among many employees across

departments and companies, including systems, maintenance,

safety promotion, and flight crew.

As a result, we reduced irregular operations (turnaround or

reroute) due to unexpected wind turbulence during landing. We

continue to use actual data to analyze correlations with projected

Utilize data to ensure safe
operations

Ratio of Strong Wind* Cited as a Reason for Flights Turned Back or

values to improve forecast accuracy. We continue to improve the

Rerouted Due to Inclement Weather

system for direct utilization by flight operation management per-

sonnel, flight crews, and flight operation support personnel at

each airport, thereby contributing to greater safety in flight opera-

FY2020

41%

FY2021

36% (new policy implemented in November)

tions and improved customer convenience.

FY2022

19%

* As operations are based on a comprehensive judgment of factors, the figures above

include the impact of measures other than the system described herein.

Announcements in Tokyo Monorail and
Keikyu Train cars

Hygiene audit of the in-flight meal
production facility at Haneda Airport

Security training for department managers

we felt strongly the need to predict and communicate wind information in advance.

Ensuring Safe Operations through Easy-to-Use and Sustainably
Effective Measures
Safety is our absolute priority. Since unexpected low-level wind turbulence can impact safe operations,

We established a system that produces continued effects rather than a one-time policy since

the ANA Group environment encourages opinion exchange across departments toward the shared

goal of safety.

In addition to this project, we are working to visualize and utilize weather data in three dimensions.

We will continue to do everything in our power to improve the comprehensive safety of our operations.

SAKAMOTO Kei and KANDA Anna
All Nippon Airways Co., Ltd.
Operations Management Center

Foundations for Sustainable Corporate Value Enhancement
Foundations for Sustainable Corporate Value Enhancement

Human Capital

The FY2023-25 ANA Group Corporate Strategy describes the three-year period beginning
fiscal 2023 as a time to solidify our foothold and reinvent ourselves to achieve our manage-
ment vision. It will be a period to recover from the COVID-19 pandemic and evolve toward sus-
tainable corporate value improvements. Unwavering safety is our first foundation for growth,
followed by groupwide DX. And the power of the people in the ANA Group is what supports
this foundation. Inheriting the DNA of endeavor since our founding, we strive to create new
value and sustainable growth by maximizing the individual strengths of our employees around
the world in a variety of settings and creating a driving force as a team.

→P.50 Human Resources Strategy

Case 1

Creating the Future from the Employee Perspective:
Formulating a New Management Vision

The ANA Group’s new management vision is Uniting the World

The common idea of the ANA Group of the future throughout

in Wonder, which we published in fiscal 2023. We came up with

these workshops and dialogues was that our employees

this vision as a result of extensive discussions among employ-

wanted to deliver a sense of wonder to fellow employees, cus-

ees about what they envisioned as the ideal ANA Group.

tomers, and society. Our management team held discussions in

In 2022, which was the 70th anniversary of our founding, we

response to this feedback, formulating a new management

conducted a survey and held dialogues with employees to

vision in unison with the wishes of our employees.

consider the future direction of the group in overcoming the

Group employees play

COVID-19 pandemic, and gathered more than 20,000 com-

the leading role in achieving

ments. At the same time, we launched the Future Creation

our management vision.

Project, consisting of 329 employees from ANA Group compa-

Every individual must be

nies including employees working at 53 overseas airports.

Through this project, we encourage each employee to

willing to face new chal-

lenges and take action

become a Doer (a person of action), creating the future with

based on new values. We

their own hands and making a real difference. We held work-

work as a united group to

shops and opportunities for dialogue with peers at each work-

foster a corporate culture

place to identify issues related to daily operations, work styles,

that continues to transform.

people, and organizations. We took another hard look from all

angles at what we must do for our future.

Creating a Corporate Culture that Embraces Our New
Management Vision

The Japanese term for a sense of wonder (waku waku) emerged as a common theme from the

dialogues that took place across the group when we considered our new vision.

First, our employees themselves are embracing a sense of wonder to create and deliver new

value to our customers and society.

We believe that if every employee shares this

desire, we will evolve into a more attractive

group than ever before.

Under the Future Creation Project, we

pursue corporate reform across the group and

strive to create a culture that takes on the

challenges of the future boldly while address-

ing the issues that impede the sense of

wonder.

The Future Creation Project logo expresses the
sense of wonder flowing from the ANA Group and
how expectations and joy spread across the world,
carried by the wind. The bright colors relate to the
ANA Group, and are meant to express the creation
of wonder for the future through group employees.

For more details, please visit:

https://www.ana.co.jp/group/en/about-us/vision/

MATSUI Aika, MATSUURA Yuko, KIKUCHI Yuki,
OSHIMA Seiji
Future Creation Project Secretariat

Case 2

Systems to Support Employees Who Embrace Challenge
New Business Contest Program Da Vinci Camp and ANA Millionaire Pitch

The ANA Group continues to develop systems to give shape to the ideas of our employees and encourage them to be spontaneous in

taking on challenges.

Da Vinci Camp
We solicit a wide range of new ideas to uncover the seeds of new revenue-generating busi-

nesses that will enhance ANA Group value over the medium to long term. Building on the 15

years of work by its predecessor, ANA Virtual Hollywood, the Da Vinci Camp celebrated a

third anniversary in fiscal 2023.

In fiscal 2022, we received 43 applications, including proposals from flight attendants,

aircraft mechanics, and other front-line staff. After an internal review process, four innovative

ideas were considered as candidates for commercialization. Employees act with enthusiasm

and an adventurous spirit to take on new challenges boldly and without fear of failure.

ANA Millionaire Pitch
Launched in fiscal 2021, the ANA Millionaire Pitch business and services proposal program

has become a mechanism for soliciting sustainable, quickly monetizable proposals from

employees.

In 2022, we received more than 700 ideas from employees, 13 of which have been rolled

out or are in the process. Throughout the process of giving shape to ideas, knowledgeable

ANA Group employees act as mentors and offer advice, while close communication across

departments contributes to the improvement of organizational capabilities.

Examples of Fiscal 2022 ANA Millionaire Pitch Winning Proposals

Repurposing Aircraft Equipment Scheduled for Disposal

• An employee in the human

resource services business sug-

gested upcycling seat covers

scheduled for disposal into room

shoes.

For more details, please visit:

https://www.anahd.co.jp/ana_
news/2023/01/12/20230112.html

Aircraft Photo Sessions

Collaborative Red Stamp Book

• An aircraft mechanic proposed an

in-air class and photo tour to share

the joy and gratitude for the return

of Boeing 777 domestic route

operations.

After a year of refinements, proposals underwent a
final review by directors, and the plans selected were
prepared for full-scale commercialization.

Award ceremony in which board members give
prizes for ideas that became revenue generators.

• An aircraft mechanic suggested

turning unwanted aircraft parts into

limited-edition products sold

through capsule toy machines.

For more details, please visit:

https://www.anahd.co.jp/ana_
news/2023/07/26/20230726.html

• A maintenance department

member suggested creating a red

stamp book (stamps collected from

visits to shrines and temples) in

collaboration with a shrine con-

nected to aviation. The stamp

books encourage ANA customers

and others to become more familiar

with the ANA Group.

Human Capital

Case 3

Teamwork and Organizational Capabilities through the Power of DX:
Operational Reform in the Engine Maintenance Division

Case 4

Commitment to High Service Quality: Skills Contest

ANA Engine Technics Co., Ltd., which is responsible for the maintenance of aircraft engines, conducts many ancillary maintenance

The ANA Group holds skill contests in which participants compete and learn from each other in various specialized fields,

tasks including inspections, parts supply management, and the management of certain processes. In fiscal 2022, the company digitized

including cabin attendants (CA), airport ground handling, contact center, in-flight cleaning, and cargo.

tasks previously performed orally or on paper. In so doing, ANA Engine Technics achieved significant operational improvements and

As society and values continue to change at a dizzying pace, we introduced innovative and sustained efforts during the

improved teamwork. These improvements also built momentum in the workplace for reviewing and improving daily operations.

COVID-19 pandemic to meet the needs of various customers and to become the airline of choice.

Steps Taken by ANA Engine Technics

(1) Digitized various operations formerly conducted in analog form

In preparation for each contest, employees study hard on their own and share skills through team-wide practice and regional

qualifying rounds. In every contest, participants compete with confidence and pride as representatives of their respective orga-

nizations. Peers cheer each other on and learn new skills from each other. And the contestants continue to serve as role

(2) Gave iPads to all mechanics to access the in-house portal site regardless of location or time; facilitated efficient use of time and

models for their organizations, raising the overall level of quality by training their successors.

resources

(3) Accelerated cloud-based work styles and pursued DX

(4) Eliminated duplicate tasks and improved efficiency and accuracy through digital transformation business process review

Our relentless dedication to quality has earned us the highest rating of 5-STAR for 10 consecutive years in the World Airline

Star Rating by U.K.-based SKYTRAX.

Division

Contest

Overview

Cabin (CA)

In-Flight Announcement

Competition in making in-flight announcements that embody

Contest

the ANA Brand

Ground Handling

Ground Handling Customer

Competition in providing polite service to every customer at

Service Skills Contest

the airport (boarding gates, ticket counters, etc.)

Contact Center

Customer Service with

Competition in answering customer questions, suggesting

(Telephone Support)

Empathy Contest

solutions, and engaging with hospitality.

In-flight Cleaning

Cleaning Skills Contest

Competition in cleaning an aircraft cabin within a predeter-

mined time period

Competition highlighting expertise in freight forwarding and

Cargo

ANA Cargo AWARD

initiatives to improve operations, safety and quality in each

organization

Before: Analog Management over
Each Process

After: Centralized Management via Web Portal
Used Google Docs for DX

Impact

Inspections
Periodic inspection of cranes used for maintenance

Tools
Inspection before and after use; tracking and management

Work Requests
Coordinate with engine transporter management department

Equipment
Control inventory of equipment used for maintenance

Processes
Allocate personnel appropriately for assigned tasks

· Saved 785 labor hours out of approxi-

mately 40,000 labor hours by reducing
employee movement

· Reduced paper consumption by 40%
compared to conventional methods

· Strengthened cooperation among

departments

· Reduced human error by visualizing

processes and requests using
photographs

· Fostered a culture of continuous opera-

tional review

While the new mechanisms were a source of confusion and met resistance at first, project

members provided detailed and patient explanations to every employee and designed sys-

tems for ease of implementation. The team also listened to feedback from the front lines,

eventually creating a usable system for the organization through steady efforts and

problem-solving.

The linkage of internal data reduced process duplication and fostered timely data visualiza-

tion. The ANA Group will continue to consider ways to utilize these mechanisms within the

group and evolve activities.

Innovations from Our Maintenance Departments

Our aim was to create an environment in which every person has easy access to information and

foster a more comfortable workplace through mechanisms based on DX.

It was a big challenge to see how far we could go in streamlining operations without introducing

new systems or spending money. We made the most of utilizing existing tools and the work tablets

given to each person. We believe there are still seeds of innovation to nurture in our area of aircraft

maintenance. We will continue to innovate in a way that allows our colleagues to shine more brightly,

maintaining safety while responding flexibly to changes in the environment.

FUJII Hiroomi, KAMOSHIDA Makoto
ANA Engine Technics Co., Ltd.

Foundations for Sustainable Corporate Value Enhancement

Digital Transformation (DX)

Message from the CIO

We will use digital technologies and data to
transform our businesses and create new value.

KATO Yasuko

Executive Vice President

Group Chief Information Officer(CIO)

Major Initiatives

Examples of DX Initiatives

Revised Online Check-In Service
On April 1, 2023, we discontinued the SKiP service, which the

ANA Group has used for 16 years, and shifted to an online

Gate Apps Connecting Customers’ Daily Life
with the ANA Group
In October 2022, we renewed the ANA Mileage Club apps to

check-in service as a part of our new service model ANA Smart

achieve a world in which people live in a mileage-based ecosys-

Travel. This new service model will provide smooth and stress-

tem. This apps gives users access to ANA Group services in

free travel to all our customers. In addition to providing reserva-

their daily lives. We also renewed our mobile payment service

tion and check-in services, ANA Smart Travel sends automatic

function of this apps, ANA Pay, in May 2023, enabling various

notifications of flight information and provides information on

recharge methods and touch payment with iD and Visa. This

Haneda Airport security checkpoints and lounge congestion,

renewal also enables users to recharge miles from as low as

The FY2023-25 ANA Group Corporate Strategy defines

2. Securing Human Resources with Digital Skills and

seat availability, in-flight entertainment, and more, enabling

one mile and use small amounts of miles in their daily lives,

DX as an important Group management foundation. It is

Supporting Their Development

essential for our Group to digitalize operations and trans-

DX cannot be promoted by only a few specialized human

form business using data to accelerate our business in

resources. Instead, it is important for all Group employees

this era of rapidly changing VUCA.

to utilize appropriate digital knowledge for their own

We will work to improve forecasts business optimiza-

respective roles. As such, we will further enhance our

tion, and customer loyalty by utilizing data not only in

education curriculum (ANA Digital Resonance) that was

operations and marketing departments but also across

launched in fiscal 2022 to improve the digital literacy of all

cargo, the ANA Economic Zone, and each airline brand.

employees. We will also focus on recruiting, re-skilling,

At the same time, we will encourage management

and supporting the growth of human resources with digi-

sophistication.

tal skills.

On the other hand, the state of our society is changing

dramatically through the rapid evolution of AI, including

3. Offensive and Defensive Digital Governance

generative AI, and the expansion of digital technologies

Digital governance is an indispensable mechanism that

such as avatars, drones, the metaverse, and web 3.0.

supports the promotion of DX by actively utilizing data and

The ANA Group will steadily seize these trends and lever-

digital technology in a safe and secure manner. We will

age the strengths of our group human resources to pro-

continue to strengthen the governance of all Group com-

vide the best mix of human and digital services.

panies through measures such as establishing guidelines

As such, our current Medium-term Corporate Strategy

and rules, supporting DX, educating, and conducting

will focus on the following four points in particular.

security screenings.

1. Data Management Enhancement

4. IT Infrastructure Evolution

We developed BlueLake, a data lake that pools together

The environment of our IT infrastructure is undergoing a

internal data, enabling access to various ANA Group data

major transition with the rise of the public cloud.

that was previously held and utilized separately in each

Between fiscal 2025 to 2026, ANA will integrate its

business unit. BlueLake serves the foundation for a variety

domestic passenger service system with the passenger

of analyses for general employees to advanced data scien-

service system provided by Amadeus. We will examine

tists, regardless of their skills and purpose, and will be used

future IT infrastructure that will enable us to provide

to expand the data and use cases within the Group.

speedy services flexible to change, such as the use of

We also work to strengthen management to allow for the

public cloud as a platform to support our DX strategy.

appropriate control and operation of data, and foster a

culture that enables employees to use this group-wide data.

passengers to travel smoothly with a single mobile device.

making mile usage more convenient than ever before. We aim

Having customers carry out procedures on their own enables

to create a gate apps that connects the ANA Group and cus-

us to streamline and review operations to be handled by atten-

tomers through various services, such as our ANA Pocket for

dants. In doing so, our frontline staff aims to further provide the

earning points for daily travel, our new e-commerce mall ANA

unique hospitality of ANA.

Mall, and the linkage of other mini apps.

Mechanisms Supporting DX

Digital Lead Training and Development
The ANA Group launched the Digital Lead Training and

Data Utilization Infrastructure Development
BlueLake, which went into operation in 2022, is the data utiliza-

Development to help employees in charge of business division

tion platform of the ANA Group with dashboard functions,

IT and data utilization to acquire full-fledged digital skills. We

advanced analytical functions, data extraction functions, and

plan to train a total of approximately 40 employees during fiscal

more. This platform was mainly developed by young employees

2023. Participants will work with in-house instructors and

and was created in about four months. We established an agile

accompaniment in the program to acquire basic knowledge and

team of in-house data engineers and scientists to expand the

even propose solutions to workplace issues using digital tech-

data that currently works to connect various systems and sup-

nologies and data. Through this training course, participants will

port their use based on the needs of each department. For

aim to generate results by acquiring problem-solving skills,

example, the team built and launched a beta version of a dash-

using digital technologies and data, and transforming to a work

board function in December 2022 based on flight data that

style of collaborative creation between operational departments

would lead to reduced fuel consumption. Through having pilots

and DX promotion departments.

check this dashboard, we aim to create an environment that

allows safe and environmentally and economically friendly

operations.

Foundations for Sustainable Corporate Value EnhancementRisk 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 recurrence in case risks materialize.

Risk Management Structure

The ANA Group Total Risk Management Rules provide 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

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

risk management (risk prevention) operations according to

plans and take swift action while working with the secretariat in

the event of a crisis.

General

Determine Basic Policies

Board of Directors

General

Formulate and Issue Basic
Policies Monitor Response
Status

Instruction / Supervision

Proposal / Report

Group ESG Management Promotion
Committee
Identification of key risks for the ANA
Group

General

Supervise Risk Management

Chief ESG Promotion Officer (CEPO)

Preventive
Measures

Identify Risks
Analyze and Evaluate
Consider Response
Measures
Implement and Monitor

Instruction /
Supervision

Report /
Consultation

Comprehensive
understanding of
companywide risks
General
Administration
Risk Management
Team

Crisis
Response

Collect Information
Implement Initial Response
Determine Causes
Formulate Measures to
Prevent Recurrence

ESG Promotion Officer (EPO)

EPO

ESG Promotion Leader (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 man-

Information Security
Under the ANA Group Security Management Manual, we con-

agement training. During regular meetings, EPLs share case

struct and maintain groupwide regulations, in addition to an

studies and provide instructions on measures that need to be

information security control system. Through this system, we

strengthened. Under this system, EPLs provide instructions and

work to enhance system functionality and implement security

responses within their respective companies.

measures in accordance with policy.

Business Continuity Plan (BCP)
We formulated the ANA Group Basic Business Continuity Policy

Protection of Personal Information
In order to comply with national and international laws and

in preparation for responding to disasters. This policy ensures

regulations on the protection of personal data, the privacy policy

the safety of customers and all ANA Group directors and

and relevant internal rules are being modified, and the Amended

employees, minimizes the impact on management and on

Act on the Protection of Personal Information of Japan, which

society as a whole, and resumes normal business operations as

came into force on 1 April 2022, as well as revisions to laws in

quickly as possible. This policy is an all-hazard type policy not

other countries (e.g. the U.S., Europe, China, and Thailand) are

restricted to specific disasters, and specific measures are being

being appropriately addressed. We also conduct in-house train-

discussed at each group company. The Ministry of Land,

ing to each employee on the importance of protecting personal

Infrastructure, Transport and Tourism established guidelines that

information and the need for strict handling of such information.

address building airports resistant to natural disasters. Under

In April 2023, the Privacy Governance Team was established as

these guidelines, ANA conducts inspections and reinforcements

a dedicated governance structure to strengthen privacy gover-

of airport facilities and equipment for flooding and power out-

nance in order to realize business development based not only

ages. Additionally, we perform emergency drills at airports in

on strict legal compliance but also on ethical appropriateness in

case of disasters. Thus, ensuring prompt responses in the event

the future use of data, including platform businesses utilizing

of emergency.

customer data assets.

Security Export Control*
The ANA Group exports the parts, apparatuses, and other

structures regarding security export control, and strictly main-

tained them through annual audits and training. We not only

articles necessary for aircraft maintenance to overseas airports

target exporting divisions that work in direct export but also

and aircraft maintenance centers. We recognize that certain

divisions that are involved with custom clearances and other

articles have the potential to be used as weapons. Accordingly,

export-related processes.

we practice rigorous security export control of exported articles

* Security export control is a term that refers to all regulations placed on exports from

and their related technologies. We established regulations and

Japan by the Foreign Exchange and Foreign Trade Act.

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 defense in depth in accordance with the guidelines formulated by related

ministries. We monitor our security system 24 hours a day, 365 days a year. The use of intelligence (early warning informa-

tion on cyberattacks) is extremely effective against cyberattacks as they become more sophisticated and cunning. The ANA

Group utilizes preventive measures such as the Aviation ISAC (Information Sharing and Analysis Center) and the

Transportation ISAC JAPAN, as well as Dark-Web research. We also introduced the Zero-Trust concept to defend against

attacks and ensure reliability by checking with the person operating the system, the equipment generating the communica-

tion, and system processing.

In light of recent cybersecurity incidents at other companies, there is a growing need to strengthen not only the ANA Group

security measures but also the defense of our entire supply chain. We will strengthen cooperation with related ministries,

Keidanren(Japan Business Federation), and other related agencies to spread awareness on the need to strengthen security.

Our top material issue is to address the visualization of the IT assets of each company in the ANA Group supply chain.

We identify issues and vulnerabilities through managing attack surfaces, which are points of external attack at each group

company. Any issues and vulnerabilities discovered are prioritized and kept closely informed, communicated, and consulted

so that each group company can take the necessary countermeasures.

Information security advisories and refresher training materials are regularly posted on our website for employees to help

develop security human resources, and we raise employee awareness of security through their daily operations and

+Security training. The development of human resources specializing in security is an urgent issue. In addition to continuing

to hire experienced personnel, we work to develop security supervisory personnel by recruiting transfers from other depart-

ments and having them attend specialized security training.

As for our legal correspondence, we sequentially respond to privacy laws and regulations in each country. In Japan, we

work closely with the national government, Keidanren, and other related organizations to promote the various IT systems

and cybersecurity measures required by the Economic Security Promotion Act.

Recent Measures for Increasingly Severe Natural Disasters
Recently, torrential downpours and typhoons have been growing in size, inflicting natural disasters countrywide. In response

to this, we are taking various measures to protect our communication facilities and power supply facilities, which are essen-

tial infrastructure facilities for operations within airports.

As a countermeasure for flood damage, we are working to establish an environment that allows for early restoration at our

top five main airports assumed at high risk for flooding (Haneda, Chubu, Kansai,

Fukuoka, and Okinawa). To do this, we are using the latest hazard maps to begin

construction to install water gates and relocate equipment to higher areas.

Also, we are taking measures for power outages at major airports to establish

environments where operations can continue during power outages. These mea-

sures include connecting necessary terminals for aircraft operations with emer-

gency power equipment, and replenishing capacity of emergency power supplies

through the use of large storage batteries.

Operation Management Center and an installed
large storage battery (bottom left)

Foundations for Sustainable Corporate Value Enhancement

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

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 Reporting,

workplace harassment including training for newly appointed

we have set up a point of contact (ANA Alert) both inside and

managers. In response to requests from group companies, we

outside the group (via a law firm) to collect compliance-related

implemented training that encourages participants to recognize

information and resolve any issues. The reporting system is

and reconsider the risk of harassment and appropriate mea-

available to all group executives, employees, and temporary

sures in their own workplace based on a harassment aware-

personnel involved in the group’s business. The ANA Group

ness survey. Additionally, we provided harassment prevention

retirees and executives and employees of our business partners

The ANA Group has developed a compliance structure based on the ANA Group Compliance Regulations to promote compliance with

education through e-learning for group executives and employ-

may also use the reporting system. We protect the privacy of

laws, regulations, and other standards related to business activities. Under the Group ESG Management Promotion Committee, our

ees to develop a proper understanding of harassment and

the whistleblower and relevant parties, and assure that no

advisory panel to the Board of Directors, we strive to strengthen awareness of compliance throughout the entire group. We appointed

strive for zero-tolerance and more comfortable work environ-

punitive measures will be taken against those that seek consul-

an ESG Promotion Officer as the person responsible for promoting compliance at each group company, and an ESG Promotion Leader

ments throughout the group.

to drive compliance at each workplace.

Major Initiatives

Legal Compliance Education
We conduct a variety of educational programs for every group

Information Dissemination
We manage an extensive compliance website on our intranet to

executive and employee to acquire correct knowledge of and

encourage awareness on compliance throughout the group.

exercise appropriate judgment related to various laws and

This website includes codes of conduct that outlines the

regulations. We hold regular seminars on contract practices,

actions to be commonly followed by all group executives and

labor practices, and laws and regulations related to air trans-

employees. In addition, we specifically outline employee do’s

portation, improving our familiarity with business-essential

and don’ts, as well as provide educational materials on the

knowledge. Seminars on competition law and air transportation

website for in-house training and other purposes. We support

for group executives and employees working overseas are also

group executives and employees in making appropriate deci-

available, focusing on minimizing legal risks globally. We also

sions in compliance with said laws and regulations. Measures

conduct seminars tailored to topics and contents that reflect

include posting the manuals and guidelines on various laws and

the needs of each group company and/or department to foster

regulations for them to check at anytime, as well as establishing

a more legal-related competence. In addition to conducting

a simple way for them to ask questions from the website on

online seminars, we maintain a global learning environment for

legal issues in their business. In addition, we distribute emails

E-learning materials

tation or cooperate in confirming facts. This enables us to

obtain internal risk-related information promptly and aids in self

correction. We additionally introduced a reporting form to

enhance convenience and allow direct reporting from the whis-

tleblower website on our intranet. As a result, there were 225

reports within the group in fiscal 2022, and the system has

spread throughout the group as a reliable and effective whistle-

blowing system.

group executives and employees to learn about various laws

and newsletters as necessary on topics related to revisions to

and regulations by posting educational materials and explana-

laws and regulations, as well as points of caution regarding

tory videos on our intranet.

labor issues and contract practices.

Educational materials on various laws
and regulations

Compliance website

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

ANA Alert poster

Compliance Survey of Group Companies
Surveys on compliance at group companies are conducted

branches, building and operating a structure facilitating two-

annually. The survey consists of self-evaluations on compliance

way communication.

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.

Foundations for Sustainable Corporate Value EnhancementFoundations for Sustainable Corporate Value Enhancement

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.

The ANA Group aims to practice management that
contributes 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 experi-
enced 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.

Corporate Governance System

Appointment /
Dismissal

Accounting Auditors

Account
auditing

Reporting

Personnel
Advisory
Committee

Remuneration
Advisory
Committee

Audit & Supervisory Board

Auditing

Reporting

Audit &
Supervisory Board
Members Office

General Meeting of Shareholders

Board of Directors

Group Management Committee

Appointment / Dismissal

Board of Directors

Advice

Appointment /
Dismissal
Supervision

Proposal / Report

President & Chief
Executive Officer

Group Management
Committee

Reporting

Overall management

Proposal / Report

Group ESG Management Promotion Committee

Number of
Board Members

Directors 11

(including 4 independent outside
directors and 1 female director)

Audit & Supervisory
Board members

Term of Office

1 year

(also applies to
outside directors)

Number of
Meetings*

Number of Meetings*

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 & Chief Executive Officer, the Group
Management Committee consists of full-time directors, full-time Audit &
Supervisory Board members, and others, and functions as an organiza-
tion 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 Group Risk and Compliance

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, 2023)

Personnel Advisory Committee

Remuneration Advisory Committee

Chairman

Number of
Members

Number of
Meetings*

Chairman

Number of
Members

Number of
Meetings*

YAMAMOTO Ado

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 four 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 2022

Number of
Meetings*

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.

Foundations for Sustainable Corporate Value Enhancement

Corporate Governance

Management Members: Directors As of July 31, 2023

Name

Position at ANA HOLDINGS

Independent
Directors

Executive
Officers

Assignments

Personnel
Advisory
Committee

Remuneration
Advisory
Committee

Corporate Management
and Long-Term Strategy

Airlines Business and
Safety

Human Resources
Development and Diversity

Finance and Accounting

Legal and Risk
Management

Sustainability

Technology and Innovation

Global Management

Special Knowledge, Experience, and Skills

1 KATANOZAKA Shinya

Representative Director,
Chairman

Chairman of the Board of Directors

2 HIRAKO Yuji

Member of the Board,
Vice Chairman

3 SHIBATA Koji

4 FUKUZAWA Ichiro

Representative Director,
President & Chief
Executive Officer

Representative Director,
Senior Executive Vice
President

Chairman of the ANA Group Management Committee,
Head of Group ESG Management Promotion Committee,
In charge of the Internal Audit Division
Chairman, ALL NIPPON AIRWAYS CO., LTD.

Chairman of the ANA Group Corporate Transformation
Committee;
In charge of Corporate Strategy, Group Procurement

5 INOUE Shinichi

Member of the Board

President & Chief Executive Officer,
ALL NIPPON AIRWAYS CO., LTD.

6 HIRASAWA Juichi

Member of the Board,
Executive Vice President

In charge of Government & Industrial Affairs,
Executive Secretariat, Economic Security

7 KAJITA Emiko

Member of the Board,
Executive Vice President

Chairman of Group ESG Management Promotion Committee;
In charge of Group Risk and Compliance, Legal & Insurance,
General Administration

8 YAMAMOTO Ado

Independent Outside
Director

9 KOBAYASHI Izumi

Independent Outside
Director

10 KATSU Eijiro

Independent Outside
Director

11 MINEGISHI Masumi

Independent Outside
Director

Chairman

The reasons behind the selection of the skill sets that the company expects its directors to possess are set forth in the Notice of the 78th Ordinary General Meeting of Shareholders.
https://ssl4.eir-parts.net/doc/9202/ir_material5/207579/00.pdf

Corporate Governance

Appointment of Directors

Approach to Selection of Director Candidates

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

• • 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 COVID-19 pandemic and for achieving sustainable increases in

Group corporate value.

• • These director candidates assumed their positions after being appointed at the 78th Ordinary General Meeting of Shareholders.

Brief Personal History /
Major Concurrent Positions

2011: Executive Vice President

2015: President & Chief Executive

Officer, Representative Director

2022: Representative Director,

Chairman (present)

Major Concurrent Positions

Outside Director,

Tokio Marine Holdings, inc.

Outside Director,

Kirin Holdings Company, Limited

2015: Member of the Board of

Directors

2022: Member of the Board,

Vice Chairman (present)

Major Concurrent Positions

Outside Director,

Seven Bank, Limited

Outside Director,

JVCKENWOOD Corporation

KATANOZAKA Shinya
Chairman of the Board

Chairman of the Board of
Directors

HIRAKO Yuji
Member of the Board,
Vice Chairman

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Reasons for Appointment

KATANOZAKA Shinya has extensive experience in sales, human resources, corporate
planning, and other disciplines. He was appointed representative director and president &
CEO in April 2015 and he has achieved a profit growth for four consecutive years. In
addition, he led measures during the business crisis resulting from COVID-19 such as
quickly securing liquidity on hand as well as formulating and implementing our business
structure reform plan. Since April 2022, Mr. Katanozaka has served as chairman and
chair of the board of directors, endeavoring to strengthen the functions of the board by
leveraging his extensive experience and achievements over his career.

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 led the company toward becoming the world’s
leading airline. He has also taken a leadership role in reforming the service model for the
post-COVID-19 era. As a member of the board and vice chairman since April 2022, Mr.
Hirako has contributed to strengthening the functions of the board of directors by lever-
aging his extensive experience.

SHIBATA Koji
Representative Director,
President & Chief Executive
Officer

2020: Member of the Board of

Directors

2021: Representative Director

2022: Representative Director,

President and CEO (present)

FUKUZAWA Ichiro
Representative Director,
Senior Executive Vice
President

2019: Member of the Board of

Directors

2022: Representative Director,

Senior Executive Vice President

(present)

Major Concurrent Position

Outside Director,

Japan Airport Terminal Co., Ltd.

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. As representative director, president & CEO since April 2022, Mr.
Shibata has been pursuing group management, always maintaining a global perspective and
placing the highest priority on safety. He contributes to strengthening the 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 officer. 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. As representative director and senior executive vice
president since April 2022, he has been in charge of planning and executing the Group
Corporate Strategy, assisting the President & CEO, and contributing to strengthening board
of directors’ functions through leveraging his wealth of experience and achievements.

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Brief Personal History /
Major Concurrent Positions

Reasons for Appointment

INOUE Shinichi
Member of the Board of
Directors

2022: Member of the Board of

Directors (present)

Major Concurrent Positions

President & Chief Executive Officer,

ALL NIPPON AIRWAYS CO., LTD.

Chairman of All Japan Air Transport

and Service Association Co., Ltd.

2022: Member of the Board of

Directors (present)

HIRASAWA Juichi
Member of the Board,
Executive Vice President

KAJITA Emiko
Member of the Board,
Executive Vice President

2023: Member of the Board of

Directors (present)

INOUE Shinichi was involved in the establishment of Peach Aviation Limited, Japan’s first
low cost carrier (LCC), and as representative director & CEO, he has achieved rapid
growth for the company. In addition, since April 2020, he has overseen the sales division
as representative director and executive vice president of ALL NIPPON AIRWAYS CO.,
LTD., a core subsidiary of the ANA Group. As representative director and president &
CEO of the company from April 2022, Mr. Inoue has been pursuing the management of
that company with safety as the top priority in order to put it back on a growth trajectory
that will see it become a leading global airline.

HIRASAWA Juichi has been involved with the business planning and planning divisions
for many years. From April 2018, he served as an executive officer of ALL NIPPON
AIRWAYS CO., LTD., a core subsidiary of the ANA Group, where he was in charge of
creating and promoting innovations such as automated airport vehicle operation and
MaaS in addition to formulating and implementing the company’s Corporate Strategy.
Since June 2022, he has served as a member of our Board of Directors, working primar-
ily on industrial policy.

KAJITA Emiko has been involved in in-flight services and customer departments for
many years. She has been involved in business operations as representative direc-
tor and president of the Group’s integrated contact center since April 2014. In
addition, she has been in charge of the in-flight services center as director of ALL
NIPPON AIRWAYS CO., LTD., a core subsidiary of the ANA Group, since April
2020. There, she worked to improve safety, operational quality, and service. Since
April 2023, as a senior executive officer at the company, Ms. Kajita has been pursu-
ing the promotion of ESG and risk management.

Brief Personal History /
Major Concurrent Positions

Reasons for Appointment

YAMAMOTO Ado
Independent Outside Director

2013: Member of the Board of

Directors (present)

Major Concurrent Positions

Advisor of Nagoya Railroad Co., Ltd.

Outside Director,

Chubu-Nippon Broadcasting

Co., Ltd.

KOBAYASHI Izumi
Independent Outside Director

2013: Member of the Board of

Directors (present)

Major Concurrent Positions

Outside Director,

Mizuho Financial Group, Inc.

Outside Director,

OMRON Corporation

KATSU Eijiro
Independent Outside Director

2020: Member of the Board of

Directors (present)

Major Concurrent Positions

President and Representative

Director and Co-CEO and COO,

Internet Initiative Japan Inc.

Outside Director,

Nippon Television Holdings, Inc.

YAMAMOTO Ado has a wealth of experience and expertise in the transportation industry,
both in corporate management and as the head of an economic organization. At meet-
ings of the board of directors, he actively leverages his background to provide appropri-
ate opinions and advice on the ANA Group Corporate Strategy and personnel policies,
new businesses, safety, quality 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 has a wealth of experience and expertise serving as a representative
for private financial institutions and international development finance institutions. She
additionally serves as an outside director for various other companies. At meetings of the
board of directors, she actively leverages her background to provide appropriate opinions
and advice on the ANA Group Corporate Strategy, human resources strategy, sustain-
ability, and governance.
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 a wealth of experience and expertise as a government official, including
his tenure as Vice Minister of Finance and his extensive experience in ICT company
management. At meetings of the board of directors, he leverages his background to
actively provide appropriate opinions and advice about the ANA Group Corporate
Strategy, new business, risk management, and other matters.
Mr. Katsu was appointed as a member of the Remuneration Advisory Committee and
the Personnel Advisory Committee in June 2020.

MINEGISHI Masumi
Independent Outside Director

2020: Member of the Board of

Directors (present)

Major Concurrent Positions

Chairperson and Representative

Director of the Board,

Recruit Holdings Co., Ltd.

Outside Director, Konica Minolta, Inc.

MINEGISHI Masumi has led numerous new businesses to success at Recruit (now
Recruit Holdings Co., Ltd.). From April 2012, he contributed to a significant increase in
their corporate value as representative director and president & CEO of the company
through mergers and acquisitions of overseas companies, and has a wealth of experi-
ence as a company manager in consumer and service industries. At meetings of the
board of directors, he leverages his background to actively provide appropriate opinions
and advice on the ANA Group Corporate Strategy, new businesses, investment manage-
ment, and other matters.
Mr. Minegishi was appointed as a member of the Remuneration Advisory Committee
and the Personnel Advisory Committee in June 2022.

Foundations for Sustainable Corporate Value Enhancement

Corporate Governance

Management Members: Audit & Supervisory Board Members As of July 31, 2023

Fiscal 2022 Initiatives

Approach to Selection of Candidates for Audit & Supervisory Board Member

Major Agenda Items for the Board of Directors (Fiscal 2022)

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
possess 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 candi-
dates who are well-versed in corporate management, candidates who have sophisticated knowledge of social
and economic trends, and candidates who have advanced knowledge in finance, accounting, or legal matters.

KANO Nozomu*
Outside Audit & Supervisory
Board Member

MIURA Akihiko

Audit & Supervisory
Board Member

MITSUKURA Tatsuhiko

OGAWA Eiji*

MITSUHASHI Yukiko*

Audit & Supervisory
Board Member

Outside Audit & Supervisory
Board Member

* Independent Audit & Supervisory Board members

Reasons for Appointment of Audit & Supervisory Board Members

KANO Nozomu and MITSUHASHI Yukiko were elected at the 78th General Meeting of Shareholders.

Reasons for Appointment

B
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KANO Nozomu
Outside Audit & Supervisory
Board Member

KANO Nozomu has long served as a corporate executive officer of a policy-making finance institution and
as a director of a private company. As such, he has a wealth of management experience and broad
insight into finance, accounting, banking, and legal matters.

MITSUHASHI Yukiko
Outside Audit & Supervisory
Board Member

MITSUHASHI Yukiko has a high degree of insight and knowledge in general legal matters as an attorney
at law. Although she was only involved in corporate management as an outside officer, she possesses the
aforementioned expertise, practical experience in business companies, and experience as an outside
director at other companies.

Mr. MIURA Akihiko was elected at the 76th General Meeting of Shareholders.

Mr. MITSUKURA Tatsuhiko and Mr. OGAWA Eiji were elected at the 77th General Meeting of Shareholders.

Name

Independent

Directors

Remuneration

Advisory

Committee

Special Knowledge, Experience, and Skills

Airlines Business

Finance and

Legal and Risk

and Safety

Accounting

Management

Sustainability

KANO Nozomu

MIURA Akihiko

MITSUKURA Tatsuhiko

OGAWA Eiji

MITSUHASHI Yukiko

1. Items Related to General Meetings of Shareholders

8. Items Related to Disposal and Receipt of Important Assets

• Proposals to be submitted to General Meetings of Shareholders

• Aircraft procurement, sales, and leases

for approval

• System investment and capital investment

2. Items Related to Directors, Corporate Executive Officers, the

9. Investment-Related Matters

Board of Directors, etc.

10. Items Related to Major Debts

• Selection of director candidates and corporate executive officers

• Financing plans

• Results of the evaluation of the effectiveness of the Board of

• Bond issuances

Directors

• Policies for officer remuneration

3. Items Related to Financial Results

11. Items Related to Corporate Governance

• Formulation of transition strategies carbon neutrality

• Internal audit plans and results reports

• Financial results and earnings forecasts

• Group ESG Management Promotion Committee report

• Reports from group companies

• Evaluations in the capital markets

4. Items Related to Shares and Capital

5. Items Related to Organizational Restructuring

• Valuation of cross-shareholdings

12. Other Items

• Information security measures

• Progress of metaverse business

6. Items Related to Personnel and Organizations

• Status report on strategic investments

7. Items Related to the Company and Important Subsidiaries

• Net Promoter Score (NPS) survey results

• Discussion on the FY2023-25 ANA Group Corporate Strategy

• ANA’s Way Survey (ANA Group Employee Engagement Survey)

• Revision of the Group Management Vision

results

• Discussions regarding business and other risks and risk

• Personnel Advisory Committee report

• ANA Brand / Peach business plan

• Remuneration Advisory Committee report

• ANA Group situation under the COVID-19 pandemic

• Current status and issues at domestic partner airlines

• Progress in acquiring shares of Nippon Cargo Airlines Co., Ltd.

Changes in Board Meeting Length
Since we began encouraging more substantial discussions

Discussion by Agenda Topic (Fiscal 2022)
We encourage active discussions of corporate strategy

in board meetings, the annual total time devoted to board

at board meetings, selecting major related topics about

meetings has increased over the last several years.

which to exchange opinions from medium- to long-term

35.4 hours

34.4

26.4

27.7

28.9

perspectives.

Matters related to fleet plan,
investments, asset sales, etc.

10.9%

Matters related to general meetings of
shareholders, board of directors, etc.
5.1%

Other
3.9%

15.1%

65.1%

Important matters,
including corporate
strategy and
business plans

2018

2019

2020

2021

2022

(FY)

Matters related to
financial results

Foundations for Sustainable Corporate Value Enhancement

Corporate Governance

Efforts to Improve the Effectiveness of the Board of Directors

The Company believes that it is important for directors themselves to enhance the effectiveness of the board of directors, while

We conducted an evaluation of the effectiveness of the board of directors in fiscal 2021 with the help of a third-party organi-

constantly considering the state of the board of directors and governance. At least once each year we analyze, evaluate, and

zation to further enhance board objectivity and transparency. This evaluation confirmed the efficacy of the board of directors. In

discuss the overall effectiveness of the board of directors, and work to address issues identi fied during this process. Through

fiscal 2022, we decided to conduct another efficacy evaluation.

the PDCA cycle, in which we again address and evaluate those issues at the end of each fiscal year, we work to improve the

(We plan to continue third-party assessments of board effectiveness about once every three years.)

functions of the board.

Fiscal 2021

Action / Plan
Define Issues

Fiscal 2022

Do
Improvement Initiatives

Check
Evaluate

• Improved how we provide outside directors
with information by recording the status of
internal discussions in the documents and
enabling directors to receive explanations of
the process of discussions.

• Continued to include a column on the
status of internal meeting discussions
and enhanced contents in the materials
provided to the board of directors.

• Encouraged the directors in charge of
explaining to supplement the materials
with the status of the discussions and
related matters as needed.

• We significantly improved the degree to which we record
the status of discussions at internal meetings, but there
was still a lot of information that is difficult to convey on
paper alone. We received requests that the explaining
director also supplement the materials with information on
the conflicting sides and intensity of the discussions.
• The chairperson now has more opportunities to prompt
comments on additional relevant information during the
proceedings, deepening members’ understandings of the
agenda.

• Discussions become more active, but it is

necessary to generate more discussion time
as time is constricted. To do so we must
delegate authority to the executive side and
short explanation times.

• Aim to enhance the follow-up of manage-
ment strategies and in-depth study of
investment decision criteria and withdrawal
criteria.

• Ensured time for discussion by present-
ing estimated time frames for explaining
agenda to the directors that would
present at the board of directors’
meetings.

• Enhanced discussions by ensuring time
for each topic of the FY2023-25 ANA
Group Corporate Strategy.

• We were commended for allocating time for discussion of

each topic of the ANA Group Corporate Strategy.
However, the priority of each topic was unclear, and we
received comments that the board of directors should
focus its discussions on the most important issues.

• Times allocated for reporting items are long. As such, we

have room to further improve time allotment for
discussions.

O
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I
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A
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Action / Plan
Identify Issues

Fiscal 2023

Do
Improvement Initiatives

Management

We must further streamline board meeting operations as
there is insufficient time for discussions of important
management strategies.

• We will both increase the number of written reports as well as reorganize the

contents of regular reports to allow more time for discussion.

• We will share the estimated time frames for explanation with all directors and

strengthen time management.

Discussion
Details

Members demand that we focus on medium- to long-term
management issues and key management issues to further
enrich our discussions.

• The board of directors will work with corporate planning divisions to prioritize and
set aside time at board meetings for necessary discussions on key management
issues and themes. Through this, they will work to further enhance discussions at
board of directors’ meetings.

Provision of
Materials to
Outside
Directors

Some commented that the provision of information is slow,
there are too many materials, and that it is difficult to
understand the main points of the materials. As such, they
urge us to closely examine the contents of the materials.

• We distribute the board of directors’ meeting materials in advance. However, will

we aim to share materials earlier than the current distribution date, even if some of
the materials are incomplete or being revised (we will update materials as we go).

• We will continue to scrutinize the contents of materials.

• Town meetings* were extremely effective to
enable us to hear the voices of those in the
field.

• The COVID-19 pandemic prevented us
from holding town meetings with the
frontline divisions. However, we
resumed site visits and town meetings
with the current business units in
FY2022.

• Outside directors highly evaluated our town meetings with
the cabin department due to our fruitful discussions with
the cabin center managers who attended the meetings.

• Going forward, directors urge for town meetings with

departments whose impact and priority changed signifi-
cantly between before and after the COVID-19 pandemic.

FrontLine
Visits and
Town
Meetings

We are urged to seek town meetings with departments
that have changed significantly since before and after
COVID-19, such as the freight department in particular.

• We will conduct town meetings with the freight department.
• We will enhance frontline visits based on the interests of the outside directors.

* Dialogue between officers and employees

Cross-Shareholdings

We believe that it is essential to maintain and strengthen

as a result of a comprehensive review, ANA determines that the

collaborative relationships with our business partners for

evaluation results will continue to be low for a certain period of

further growth and development of group businesses. The

time and further will not contribute to sustainable growth over the

ANA Group, consisting mainly of our Air Transportation

medium to long term, we will reduce our holdings in said stock.

Business, engages in cross-shareholding when we deem

ANA HOLDINGS owns shares in 30 publicly traded com-

such holdings to contribute to improved corporate value

panies as cross-shareholdings for other than pure invest-

over the medium to long term from the viewpoint of continu-

ment purposes. The total amount on the balance sheet of

ing smooth business, maintaining business alliances, and

these shares as of the end of fiscal 2022 is ¥94,058 million.

growing profits through strengthening business relationships.

Every year, the board of directors conducts a comprehensive

review of individual cross-shareholdings. The board evaluates the

significance of holdings and the benefits and risks associated. If,

Equity Alliances with Airlines
The total amount of shares of airlines owned by ANA

HOLDINGS on our balance sheet is ¥34,337 million, which

accounts for 35.1% of our cross-shareholdings. The pur-

pose of these holdings is as described on the right.

Airlines
35.1%

Details of
Cross-
Shareholdings

(1) PAL HOLDINGS, INC. (Parent Company of Philippine Airlines)

• Strengthen strategic partnership with PAL HOLDINGS, INC. through a wide

range of business alliances, including code-share and mileage program

alliances, the dispatch of directors, and outsourcing of airport operations.

(2) Vietnam Airlines JSC

• 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.

(3) Star Flyer Inc.

• Pursue strategic partnership with Star Flyer through a wide range of busi-

ness alliances, such as code-sharing, the dispatch of directors, and out-

sourcing of airport operations.

(4) Skymark Airlines Inc.

• Pursue strategic partnership with Skymark Airlines through a wider range of

business alliances such as outsourcing maintenance work.

Foundations for Sustainable Corporate Value Enhancement

• This will contribute to the enhancement of medium- to long-

We use net income, safety, customer satisfaction, and

Bonuses

Corporate Governance

Director and Audit & Supervisory Board Member Remuneration

1. Basic Policies for Director Remuneration
The basic policies for director remuneration are as follows.

performance targets have been accomplished. The ratio of

variable remuneration ranges from 0.0 to 1.0 times according to

• We set compensation at a level commensurate with the role

the degree of achievement for annual performance targets.

and responsibility of each position.

a. Bonuses

term corporate value.

employee satisfaction as indicators that reflect the perfor-

• We will incorporate stock-based compensation that allows us

mance and basic quality for a single fiscal year. Bonuses are

to share profits with our shareholders.

determined based on the scores of each indicator.

• A Remuneration Advisory Committee, chaired by an outside

b. Stock-based compensation

director and consisting of a majority of outside directors, will

be established to ensure a fair and transparent decision-

making process.

2. Procedures for Determining Remuneration
The board of directors decides director remuneration after

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 is determined

based on the scores of each indicator.

deliberation of the details, taking into account reports by the

(2) Outside directors

Remuneration Advisory Committee. The total amount of direc-

Remuneration for outside directors consists of fixed compensa-

tor remuneration shall be within the scope of the amount

tion (monthly compensation) without a performance-linked por-

approved at the Ordinary General Meeting of Shareholders.

tion. This compensation encourages outside directors to exercise

3. Remuneration Advisory Committee

See page 91

(3) Audit & Supervisory Board members

their supervisory functions from an independent standpoint.

4. Remuneration System
(1) Internal directors

Remuneration for both inside and outside Audit & Supervisory

Board members consists of fixed compensation (monthly com-

pensation) without a performance-linked portion. This compen-

In addition to a fixed basic remuneration, remuneration for

sation encourages those members to exercise their supervisory

directors includes an annual variable performance-linked bonus

functions from an independent standpoint.

and long-term incentive stock option plan as a means of pro-

Remuneration levels for members of the Audit & Supervisory

viding healthy incentives for pursuing sustainable growth for

Board are determined in line with remuneration at other com-

the Company.

panies and in consultation with outside experts.

The ratio of fixed basic remuneration and bonus / stock

options for total remuneration is 1:0.67 fixed to variable if annual

Calculation Method

Performance-linked remuneration for internal directors is calculated based on the following approach.

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%)

125

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

37.5

Conceptual Diagram for the Officer Remuneration System

Ratio

Fixed

Variable

0.67*1

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 FTSE4Good (3) Selected as a com-
ponent by MSCI (4) CDP A– rating
These four external evaluations reflect the latest global trends and demands from stakeholders. These evaluations also allow us to measure
the group’s level of ESG management in comparison with other companies.
Productivity improvement index at the end of Fiscal 2022

Remuneration limits

Productivity target:

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
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i

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

—

Annual total for (1) and (2) is
limited to a maximum of
¥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

Payment method

Monthly (cash)

Annually (cash)

Multi-year evaluation*3

*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.

100

Fiscal 2022 Director and Audit & Supervisory Board Member Remuneration

Segment

Directors

(Outside directors)

Audit & Supervisory Board members

(Outside Audit & Supervisory Board members)

Total

Number of
persons eligible

Total amount of
remuneration, etc.
(¥ millions)

Total amount by type (remuneration, etc.) (¥ millions)

Basic remuneration

Bonuses

11
(4)
6
(3)
17

342
(53)
122
(60)
464

280
(53)
122
(60)
403

–
(–)
–
(–)
–

Stock-based
compensation
61
(–)
–
(–)
61

Notes:
1. The table above includes one internal Audit & Supervisory Board member who resigned as of the end of the 77th Ordinary General Meeting of Shareholders, held on June 20, 2022.
2. We estimate and record share remuneration for directors during the period under review, with a three-year evaluation period from fiscal 2020 to fiscal 2022.
3. It was resolved at the 66th Ordinary General Meeting of Shareholders of the Company, held on June 20, 2011, that the maximum amount of remuneration of directors per year would be ¥960

million. There were 17 directors (including two outside directors) as of the close of this Ordinary General Meeting of Shareholders. It was resolved at the 70th Ordinary General Meeting of
Shareholders of the Company, held on June 29, 2015, that the maximum amount of share remuneration per year would be ¥100 million. There were seven directors (excluding outside
directors) as of the close of this Ordinary General Meeting of Shareholders.

4. It was resolved at the 74th Ordinary General Meeting of Shareholders of the Company, held on June 21, 2019, that the maximum amount of annual remuneration for Audit & Supervisory
Board members per year would be ¥180 million. There were five Audit & Supervisory Board members (Including three outside Audit & Supervisory Board members) as of the close of this
Ordinary General Meeting of Shareholders.

5. The amounts listed above are rounded down to the nearest million yen.

We reduced basic remuneration for directors and members of the Audit & Supervisory Board in fiscal 2022 according to position in

response to deteriorating business performance throughout the COVID-19 pandemic. Performance-linked bonuses have not been paid.

101

Foundations for Sustainable Corporate Value Enhancement

Trust Building with Stakeholders

The ANA Group regularly engages in dialogue with experts on ESG issues to understand social trends in a timely manner and make

flexible management decisions. We are enhancing the effectiveness of our activities by incorporating the latest information and find-

ings from these discussions into our strategies. In addition, we are holding a variety of internal discussions to have each employee

understand the importance of promoting ESG management and put it into practice in their daily work. These discussions were held

both online and in person in fiscal 2022, enabling a greater number of employees to participate and deepen mutual understanding.

Our internal and external connections with stakeholders such as these helped greatly to build trusted relationships throughout the

ANA Group.

External Dialogue

Dialogue with Experts in Europe

Participants

• UBS

Topics

Progress of ESG Management in the ANA Group

• Church Commissioners for

General ESG Topics

Q What are the key points on encouraging ESG management

going forward?

• Corporate ESG assessment criteria is shifting. It is becoming more directly related to management strategy and ques-

tions if the governance system is effectively resolving negative impacts on society. ESG assessment focuses on whether
the company has the structure (in management decision-making) to enhance the sustainability of the company.

• There is a movement to strictly eliminate greenwashing. Highly transparent information disclosures and disclosures on

the management systems that encompass the supply chain are necessary.

Environment

Q What do you think about our initiatives toward net zero emissions?

• Reducing CO2 emissions is the highest priority topic in the airline industry. This is not an easy problem to solve, but
clarifying that your company will take a leading position in the resolution of this issue will differentiate you from other
companies. It is essential to provide a clear roadmap (at a company, industrial, and national level) on CO2 reduction by
fiscal 2030 and fiscal 2050 that is linked to management (growth) strategies. You must also explain this roadmap to
investors. In doing so, it is acceptable to present short-term quantitative targets and qualitatively explain (disclose your
story) targets for the long term.

• Leadership is required in shaping public opinion on sustainable aviation fuel (SAF), lobbying governments, and taking the

initiative to involve competitors and other actors.

• We understand the need to use carbon offsets to reduce CO2 emissions. However, you need to assign specialized
personnel to determine the reliability of those carbon credits. Verifying samplings directly from the front lines is also
important to ensure reliability.

• Stating that the ANA Group will not rely on emissions trading, but will rather utilize negative emissions technologies in

your transition scenario, is highly commendable. We are particularly interested in technologies such as direct air capture
(DAC)

• SBT Certification is effective in explaining the relationship between the Paris Agreement and the Carbon Offsetting and

Reduction Scheme for International Aviation (CORSIA) of the International Civil Aviation Organization (ICAO).

Human Capital and Human Rights

Q What do you think about ANA Group initiatives on human capital

and human rights?

• We are highly interested in the ANA Group identification of human rights issues and your appropriate implementation of

corrective action in accordance with the United Nations Guiding Principles on Business and Human Rights. We continue
to focus on strengthened supply chain management such as direct dialogue with frontline workers, the acceptance of
complaints and grievances, and decision-making that involves management. At the same time, forced labor, working
hours, and living wages are common supply chain risks across all sectors.

• We focus on human capital management and human resource strategies that help achieve long-term visions and man-
agement strategies. As such, we expect to see the establishment and disclosure of KPIs related to these strategies.

England

• Federated Hermes

• EIRIS Foundation

@Caux Round Table Japan

102

Please visit our corporate website for more:

https://www.ana.co.jp/group/en/csr/communications/

The following titles of our experts are as they were at
the time of discussion.

Dialogue with Experts on Business and Human Rights (October 2022)

Participating Experts

Sofía del Valle

World Benchmarking Alliance, Engagement
Manager, Social Transformation

Talya Swissa

World Benchmarking Alliance, Research
Project Manager

Sean Christopher Lees

UNDP Bangkok Regional Hub Business and
Human Rights Specialist

Topics

Promotion of Initiatives Relating to the ANA Group’s Business
and Human Rights

Q How should we utilize privacy-sensitive customer information?

• Privacy requirements should include a globally published statement that sets forth your commitment to upholding privacy

rights and the rules for collecting, sharing, and accessing personal information. A privacy statement must include the
following information:

1) A clear explanation on what personal information will be collected
2) A clear explanation on with whom (third parties) collected personal information will be shared
3) An explanation to users on what kind of personal information was collected

What is necessary when identifying human rights and environmen-
tal issues along the value chain?

• The correct approach entails selecting specific goods that the ANA Group is involved in from production to sales, and
then identify anticipated human rights and environmental issues at each step in the value chain. However, the following
three principles should be considered when selecting issues from a human rights due diligence perspective:

1) How many people are impacted?
2) How significant is the impact?
3) What corrective measures can you apply?

Q What is necessary to consider when addressing climate change and

human rights due diligence together?

• It is necessary to understand how your company impacts climate change and reflect this in your business model. It is

also important to first assess the risk of contracted business partners in the flow of your value chain. Ensuring that their
business is conducted in a manner consistent with ANA policies is also important once the business relationship is
established. The same should be required of the suppliers with whom that company contracts. Providing incentives to
suppliers for complying with the company human rights policy can encourage efforts toward respect for human rights in
business decision-making. Incentives can include increase contract payments, increased orders, and contract
extensions.

Internal Dialogue

Internal Discussions to Promote ESG Management Awareness

SDGs Special Lecture and Panel Discussion with Employee Participation
The ANA Group held a special lecture and panel discussion with the leading SDGs researcher in Japan,

Professor Norichika Kanie (Keio University Graduate School of Media and Governance). The theme of this

event was Future SDGs and ESG Management Promotion - Contribution to SDGs Through Business,

Human Resource Development (Education and Training) and SDGs. Discussions aimed to reaffirm the

importance of encouraging ESG management and contributing to the SDGs in our future society, as well as

to deepen participants’ understanding of what it means to achieve a sustainable society and business

through our business as the ANA Group. After the discussions, employees exchanged opinions on these

topics, giving them the opportunity to familiarize themselves with the SDGs and recognize their connection

with our business.

ANA Group DEI Forum 2022
The DEI Forum currently welcomes its 8th year since establishment in 2015. The forum aims to accelerate DEI promotion in the workplace from a management

perspective and strengthen organizational capabilities by improving engagement and productivity. The topic for 2022 is Never Stand Still. The ANA Group is required

to take action in response to the recovery in demand from the COVID-19 pandemic. At the same time, we also expressed our desire to take action to achieve DEI.

As such, the group held discussions with experts in addition to panel discussions with international employees. These discussions frankly discuss the necessity of

DEI and the actions necessary to get involved in its achievement.

We streamed these discussions online and held public viewings at about 50 locations, with a total of approximately 2,000 group executives and employees

participating over two days.

103

Foundations for Sustainable Corporate Value EnhancementTrust Building with Stakeholders

Internal Dialogue

Outside Director Town Meeting Initiatives

Fiscal 2022 Topics
Changes in Flight Attendants’ Work Styles during the COVID-19 Pandemic and Future Issues and Directions

Since fiscal 2018, the group has been providing opportunities for town meetings in which outside directors can engage in

direct dialogue with managers across various ANA Group departments. The purpose of these meetings is to gain a deeper

understanding of the group’s business and corporate culture, and to assist in the future management of the board of directors.

In fiscal 2022, the ANA Group held discussions between outside directors and the Inflight Services Center, which oversees the

flight attendants that support our safety and service quality. Participants shared their responses to the excess capacity utiliza-

tion due to the COVID-19-inflicted slumps in passenger demand, the needs for new and diverse work styles, and challenges in

the current demand recovery phase.

Our Initiatives

Fiscal Year

Division

Department Name

Fiscal 2018

Maintenance

The Engineering & Maintenance Center, Each

Fiscal 2019

Flight Operations

Flight Operations Center

Fiscal 2020

Marketing

CX Management Office

Group Maintenance Company

Fiscal 2021

Human Resources

Group Human Resources Strategy Department

Fiscal 2022

Cabin

Inflight Services Center

Topic

Flight Attendant Work Styles during the COVID-19 Pandemic

Q The ANA Group hired and trained many flight attendants in preparation for the expected slot expan-

sions for Haneda Airport in 2020. However, the spread of COVID-19 significantly reduced flights, result-
ing in a large amount of excess capacity. What measures did the group take in response to this?

1. Expansion of Work Styles

Introduction of the New Short Working Day System

• The group will have to recruit more employees if it continues the short

working day system, as each person will have a smaller workload. The

group should think of how to match people to jobs on the premise of ensur-

• The ANA Group responded to the COVID-19 pandemic by introducing a

ing flexible jobs, as Japan struggles with structural labor shortages.

short working day system. This system is similar to that of work sharing and

Enforcing a uniform work style will be physically difficult for some employees.

expands the options of work styles for employees, such as commuting from

rural areas or selecting flight routes.

• Approximately 30% of all flight attendants chose this new work style, curtail-

ing the operating force by about 1,500 employees. This system leads to the

personal growth of employees by enabling them to choose a work style that

fits their lifestyle more easily, have duel employment, and learn new skills.

• While having a work-life balance is important, it is also important to send the

message that employees should choose a work style while considering how

the fulfillment of their personal lives can lead to personal growth and benefit

your work as well.

The Necessity of Securing Flexible Work Styles

• The group should continue the short working day system to ensure resilient

operations in the face of deteriorating external environments.

• We will review the system and continue making efforts to broaden work

styles. The group aims to adjust the operational capacity by increasing the

number of eligible participants of the system in the event of another pan-

demic. To flight attendants, this system doesn’t just provide more work

style options, but it also enables them to become proficient through limiting

the number of routes they work.

2. Expansion of Internal and External

Secondments and Dual Employment

Flight Attendants’ Perspectives

• The number of seconded attendants in fiscal 2022 exceeded over 1,000 at

peak times. As of December 2022, approximately 800 employees (300

internal and 500 external) are participating in secondment. The group has

also received approximately 3,000 applications for dual employment.

• Secondment proves beneficial to attendants that gain experience at other

companies, as they can rediscover themselves and see the Company from

a different perspective. Flight attendants that experience the outside world

may feel that ANA has a richer working environment.

• Some attendants feel more motivated after realizing they had been better off

or that they want to take on a more active role. Management must be

diligent in keeping those feelings alive.

• Some flight attendants take time to adapt to the new environment.

Managers in charge of supporting employees on secondment reached out,

offered care, and organized gatherings and seminars for their benefit.

Use of Employee Secondment Experience

• Each employee leverages their experiences from secondment by sharing

their experiences and awareness on aspects of work from new perspec-

tives. Positioning secondment as a stage for human resource development

and strategically drawing out employees’ strength is something the group

must tackle.

• This secondment system is favored by the participating companies and will

be continued, even though the group plans to reduce the scale of the

system in accordance with operating conditions. Whereas this system was

launched in response to the COVID-19 pandemic, the ANA Group will

continue participation to strengthen organization from the perspective of

cross-border learning and diversity.

Topic

Approach to Career Development for Flight Attendants

Q How has the COVID-19 pandemic changed flight attendants’ outlook on work?

Impact on Job Turnover Rates

Career Development Considerations for Each

• Turnover rates significantly declined during the COVID-19 pandemic. This

Employee

may be due to the effects of diversified work styles.

• The overall average may also have been impacted by the suspension of new

graduate hiring, which decreased the number of young employees with high

turnover rates. The group should conduct a precise analysis on the relation-

ship between years of employment and turnover rates.

• It is becoming gradually more difficult to fit each employee into a standard

career, as each flight’s attendants growth process is different. Values of the

younger generations are changing, broadening individual needs. Some want

to acquire certifications earlier on, while some wish to have multiple slower-

paced jobs. The ANA Group will review the current system, which is based on

• The group should work to design a system that ensures flexible work styles

lateral promotions.

if employees so wish. Companies will battle for employment going forward,

and strict workplaces will not attract many employees, even for prestigious

jobs.

• The actual issue lies in the current uniform personnel system. Individual flight

times will vary greatly from person to person with the introduction of the

short working day system. As such, the horizontal personnel system would

have to be changed uniformly.

• More employees experience secondment and dual employment, becoming

interested in other occupations. This increases their desire to transition from

flight attendants to administrative positions or transfer within the group. Even

though the group would prefer to have them be active in the Inflight Services

Center, it also wishes to help fulfill their individual careers and thereby grow

and develop the group as a whole.

• Flight attendants are responsible for protecting the lives of their customers.

This resolution and experience are great strengths that will enable them to

take on responsibility in any career. The ANA Group strongly encourages

them to broaden their horizons on other careers.

Topic

Measures and Issues in Flight Resumption

Q Are there any issues in resuming flights after their reduction in the COVID-19 pandemic?

Safety and Quality Issues

Flight Attendants Residing Abroad

• Crew hours decreased to one-fifth of pre-COVID-19 levels with the reduced

• The group saw a sharp decline in international flights during the COVID-19

scale of flight operations. In response, the ANA Group took measures to

pandemic, preventing the airline from traveling to and from other countries.

maintain safety, quality, and workmanship. The group established a hands-

• The group had worked to increase the number of flight attendants residing

on learning space and made efforts to compensate for this lack of experi-

abroad as part of its globalization efforts. Before the pandemic, the group

ence and through practical and simulated experiences.

had approximately 400 flight attendants residing abroad. This number was

• Flight attendants that joined the ANA Group from fiscal 2019 to fiscal 2020

halved by the natural decrease after the pandemic interrupted recruitment

had little to no experience with the busyness of pre-COVID-19 travel peaks

activities. Preparations to resume hiring are currently underway.

and had few flight hours. Demand for international flights, which had been

• Increasing the number of flight attendants living abroad will lead to improved

slow to recover, is gradually returning. Recently, the group is experiencing

recognition of the ANA Brand. This will also be significant in expanding the

some difficulties with an increase in full flights. The ANA Group set up

future overseas market share of the group.

temporary hands-on service training in response.

104

105

Foundations for Sustainable Corporate Value EnhancementResponsible 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 2022

Dialogue with
Shareholders and
Investors

The 78th Ordinary General Meeting of Shareholders

No. of attendees

Voting rights exercise ratio

1,040 people

60.7%

Financial Results Presentations / Corporate

Strategy Briefing Sessions / Small Meetings

Dialogue with institutional investors / analysts

(for institutional investors, analysts)

248 times (153 in Japan / 95 overseas)

Communication with
Our Employees

FY2023-25 ANA Group Corporate Strategy Top Management Presentations

No. of meetings 3 Total participants: Approx. 2,657 people

* Numbers include online interactions

Dialogue with Employees on Sustainability

SDGs Seminars for Overseas Employees (online)

No. of meetings 6
Total participants: 165 people

No. of meetings 4
Total participants: Approx. 230 people

Dialogue with
Experts

Environment

Human Rights

ESG Rating Agencies

Dialogue with
Business Partners

ANA Group Procurement Policy Briefing Sessions

7 domestic suppliers of tableware and cutlery

We sent questionnaires to suppliers to gauge the status of ESG-related

initiatives at each company and provided feedback in response to their results.

Dialogue with
Communities

ANA Blue Academy

No. of meetings

Total no. of elementary students (5th-6th):

95 students

The ANA Blue Academy Mirai Tsukuru is a career education program for fifth

and sixth graders in which we visit schools and allows students to experi-

ence one of the five jobs in the ANA Group.

External Recognition

Inclusion in ESG Indexes, etc.

As of July 2023

• CDP Climate Change A

• MSCI Japan Empowering Women Index (WIN)

• Dow Jones Sustainability

• MSCI Japan ESG Select Leaders Index

World Index

• MSCI ESG Leaders Indexes

• Dow Jones Sustainability

• The S&P Global Sustainability Yearbook 2023

Asia Pacific Index

• FTSE4Good Index

- Top 10%

• EcoVadis Sustainability Rating

• FTSE Blossom Japan Index

- BRONZE

• FTSE Blossom Japan Sector

Relative Index

Quality

• SKYTRAX COVID-19 Airline Safety Rating

• CIRIUM (ANA Group, 2022)

(ANA Group, 2022)

- Awarded 5-STAR for the tenth consecutive year

• SKYTRAX World Airline Awards (ANA Group, 2022)

- World’s Best Airport Services

- World’s Best Airline Cabin Cleanliness

- Best Airline Staff Service in Asia

Worldwide Major Airlines

- Network Category: No. 1

- Mainline Category: No. 2

Asia-Pacific Major Airlines

- Network Category: No. 1

- Mainline Category: No. 2

Management Strategy

• Ministry of Economy,

Trade and Industry

- DX Certification

• work with Pride (35 Group Companies)

• Ministry of Health, Labour and Welfare

- PRIDE Index 2022 Gold Award

Company Promoting Women’s Participation

• Ministry of Health, Labour and Welfare

and Advancement in the Workplace

• Tokyo Stock Exchange / Ministry of Economy,

- “Platinum Kurumin” Certified by the Ministry

- “Eruboshi” Certification

Trade and Industry

in Recognition of Providing Superior

(ANA, ANA Systems Co., Ltd.,

- Noteworthy DX Company 2023

Childcare Support

Overseas Courier Service Co., Ltd.,

• The Japanese Society for Artificial

(ANA, ANA AIRPORT SERVICES Co., Ltd.)

ANA TELEMART CO., LTD.)

Intelligence

- “Kurumin” Certified by the Ministry

• Nippon Kenko Kaigi, Ministry of Economy,

- The 36th Annual Conference of the

(Overseas Courier Service Co., Ltd.,

Trade and Industry

Japanese Society for Artificial Intelligence,

ANA CHUBU AIRPORT CO., LTD.,

- Certified Health and Productivity

2022 Annual Conference Award

ANA Akindo Co., Ltd.,

Management Recognition Program 2023

(Turbulence Prediction System from

ANA TELEMART CO., LTD.,

(ANA HOLDINGS INC.)

Wind Distribution using CNN)

ANA Systems Co., Ltd.)

- Certified Health and Productivity

• Job Rainbow (ANA)

D&I AWARD

- BEST Workplace 2022

Management Organization Recognition

Program 2023

(18 Group Companies, of which

8 Companies are White 500)

106

107

* 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

Foundations for Sustainable Corporate Value EnhancementFoundations for Sustainable Corporate Value Enhancement

Message from the Independent Outside Directors

Fiscal 2022 was a turning point year for the ANA Group. We not only returned to
profitability for the first time in three fiscal years, but we also overcame the COVID-19
pandemic by looking toward the future under a new management vision and
medium-term corporate strategy. The ANA Group is executing this corporate
strategy and will move to a stage solidifying our return to a growth trajectory.
We asked outside directors YAMAMOTO Ado, KOBAYASHI Izumi, KATSU Eijiro, and
MINEGISHI Masumi about their views on the ideas and initiatives on which
the ANA Group should focus, as well as issues that require attention in the future.

Remembering the Experience of

the COVID-19 Pandemic, the ANA Group

Is Pursuing a New Management Vision to

Enhance the Cohesiveness of Our Employee

Base, Striving to Return to Growth and Fulfill

Our Responsibility to Society

YAMAMOTO Ado
Independent Outside Director

The ANA Group formed a new management vision in con-

the company’s history, passing the information on to junior

junction with its 70th anniversary. The end of the global

colleagues. I think the ANA Group should consider ways to

COVID-19 pandemic and clear recovery in air passenger

pass lessons from recent history to the next generation.

demand served as a good opportunity to strengthen the

The ANA Group continues to be an indispensable part of

unity of the ANA Group behind this new management vision

society in the post-COVID-19 world, serving as infrastruc-

defining our future. Value creation within the ANA Group is

ture that supports the exchange of people and goods. The

predicated on the growth and happiness of every employee,

group must look ahead to ensure access to the right human

and the new management vision reflects the group’s focus

resources and aircraft to achieve a return to growth.

on creating a bright future for our employees. When group

Another important topic is the group’s efforts to reduce

employees around the world continue to work with energy,

environmental impact. Reducing CO2 emissions is the

take on new challenges, and strive as one to achieve our

group’s responsibility to the global environment and society,

management vision, the result will be new value for custom-

and the group must accelerate progress through concrete

ers and society.

measures to address this issue.

ANA Group management held numerous town meetings

Many were concerned that the COVID-19 pandemic

with employees to communicate the status of the group

would lead to a decrease in the number of people using air

and convey positive messages to employees who were

travel for business with the rise of telework and online con-

anxious about weak performance under the COVID-19

ferencing. However, we are seeing an increasing number of

pandemic. Senior managers communicated personal mes-

companies asking employees to return to the office as

sages repeatedly, continuing to share an appropriate sense

social and economic activities normalize. While regular

of urgency and hope for the future with employees. I believe

meetings and other activities may shift online, the value of

this practice led to a greater sense of group unity and sus-

face-to-face meetings remains as important as ever in situ-

tained engagement. This is just one example, but the record

ations such as signing contracts with a new client. We see

of how employees overcame the most unprecedented,

business trips and other travel opportunities returning grad-

most significant crises ever should be preserved and

ually. Further, the number of inbound visitors to Japan for

passed down to future generations. I believe the experience

leisure is increasing rapidly, and the group faces a wide

of overcoming the singular risk of the complete suspension

range of needs on a global level. I expect the ANA Group

of human travel will not only be a source of confidence for

will advance steadily toward transformation and achieve

all employees who faced the crisis but will also be a source

profit growth by pursuing a policy to optimize its Air

of confidence for employees in facing future challenges.

Transportation Business portfolio through the three brands

When I was president of my company, I made sure to write

of ANA, Peach, and AirJapan.

the details of business failures and withdrawals throughout

108

109

Foundations for Sustainable Corporate Value Enhancement

Message from the Independent Outside Directors

Creating a System That Leverages

the Strengths of Human Resources;

Creating a Platform That Maximizes

the Capabilities of Every Employee

Enhancing Global Competitiveness While

Motivating Employees to Raise Earnings by

Capturing Inbound Demand

KOBAYASHI Izumi
Independent Outside Director

KATSU Eijiro
Independent Outside Director

The ANA Group faced a very difficult business environment

recruiting human resources of various abilities are not

The FY2023-25 ANA Group Corporate Strategy describes

understanding of local market cultures and preferences will

due to the outbreak of COVID-19. But the group overcame

enough when pursuing diversity, equity, and inclusion (DEI).

how the ANA Group plans to grow earnings, mainly in the

undoubtedly be a valuable asset. It is important that the

the crisis through agile decision-making. One reason for this

What is really important is for the group to become an orga-

Air Transportation Business. The market that the group

group improves brand recognition globally by incorporating

success was a group of highly resourceful and adaptable

nization that makes the most of each person’s strengths.

must capture for future growth is the overseas market,

the opinions of these employees and improving the ANA

human resources. Many things happen every day on the

Diversity and inclusion, in the truest sense, is when leaders

particularly through the International Passenger Business

Group brand as an attractive option for overseas customers.

front lines, both in the airport and on the plane. Simply

assess the strengths and personalities of their subordinates

and inbound travel to Japan.

The third key element is to strengthen cooperation with

performing work in accordance with manuals is not always

accurately, seeking in earnest to draw out the strengths of

There are three key elements to capturing this inbound

other airlines. Airline consolidation is accelerating abroad in

sufficient. Each employee must think constantly about how

each individual. Besides personal success in sales, etc., the

demand. The first is to strengthen total care, including pre-

the wake of the COVID-19 pandemic. The ANA Group must

to respond to and resolve unexpected events. I believe that

ability to nurture subordinates must be an important factor

and post-airline travel. For the ANA Brand as a full-service

consider a number of factors to compete with other airlines

the overwhelming strength of the ANA Group lies in the high

in selecting leaders. I believe that excellent leaders create

carrier, in particular, the group must enhance customer

on a global scale. Route network efficiencies and joint sys-

degree of flexibility and mobility that employees have come

increased corporate value when they see the success of

experience value through enriched services from the very

tems are just two examples. The group must streamline

to possess through the accumulation of such day-to-day

every person in their individual organizations.

beginning to the very end of the journey. ANA Smart Travel

operations through collaboration from various approaches

activities.

Job-based employment has been the focus of much

allows users to carry out a number of tasks online regard-

to increase its competitive stance.

To utilize the strengths of ANA Group employees further,

attention recently. But I believe that the role employees play

less of time or location, including airline ticket reservations,

The ANA Group achieved net profits in fiscal 2022. This

the board of directors discusses women’s empowerment

need not be bound by the framework of employment status

purchases, and check-in. But there is room to evolve and

accomplishment reflects significant progress coming out of

and non-Japanese employees as issues to address through

or career paths. Whether one is active in a particular area

create a system for smooth and stress-free travel. An exam-

the greatest crisis ever to face the industry. And this feat

the human resources strategy. I believe the training cycle

through high-level expertise, or whether one exercises lead-

ple would be MaaS linkage with other means of transporta-

was accomplished because the group united as one,

functions effectively as it is, with women seconded to

ership in situations bridging departments and opinions, is

tion, such as railroads and buses, that connect airports to

executing initiatives, including business structure reforms,

manage group companies to learn more about manage-

merely a difference in roles to the end result of achieving the

final destinations. The group must communicate such fea-

even in the face of the difficulties caused by COVID-19.

ment, and then returned to their former companies. But the

overall mission of the company. An effective formula for

tures in an easy-to-understand manner. Digital services

Employee motivation will remain a very important part of

many talented women across the organization need a

organization management is one in which individuals con-

used by large numbers of people result in data accumula-

the process to improve performance further in the future.

system that encourages them to play more active roles. In

tribute their unique abilities to the greatest extent possible,

tion and further service improvements.

If employees work with confidence and take on various

addition, as a company that operates routes globally, ANA

sharing in the success and receiving proper evaluations

The second key element is to expand opportunities for

challenges boldly, the ANA Group is sure to create new value

should incorporate more perspectives of foreign employees

based on the degree of their contribution.

human resources to become global employees. The ANA

and generate more profits than even before COVID-19.

working in Japan and abroad. Numerical goals, KPIs, or

Group approaches potential customers around the world

The ANA Group must continue this trend of sharing results

amid diversifying values and changing social environments.

with stakeholders—including employees, shareholders, and

Having global employees in each country who have a deep

society—creating positive cycles.

110

111

Foundations for Sustainable Corporate Value Enhancement

Message from the Independent Outside Directors

Message from Chair of the Board of Directors

Pursuit of Services Maximizing ANA

Strengths in the Non-Airline Business,

Emphasizing Ownership and

Customer Focus

MINEGISHI Masumi
Independent Outside Director

In the year since I became an outside director, I have devel-

Business. However, if the group focuses on customer value,

oped two strong impressions of the ANA Group. First, I

compares objectively how they differ from competitors, and

believe management takes excellent care of its employees.

works with a sense of ownership to create something

At the same time, employees have a high level of trust in

better, I believe the ANA Group will move steadily in the

the company, creating a positive relationship between the

right direction. Through repeated trial and error, the ANA

two. I also appreciate the fact that the Spirit of Challenge,

Group will discover its own strengths and winning strate-

established at the founding of the company, has deep roots

gies. As a team of employees, the group will work together

in the workplace still. Employees embrace taking on new

to implement a cycle of challenging the top companies in

challenges, which management encourages.

the industry, increasing competitiveness by winning the

The ANA Group Corporate Strategy describes how the

support of customers, and reinvesting management

group will tackle reform in the mainstay Air Transportation

resources to grow the Non-Airline Business.

Business, while also growing the Non-Airline Business and

In the process of taking on new business challenges, the

expanding the ANA Economic Zone. An economic zone

group may face crises. Whether the group can take the initia-

strategy is one in which companies having a strong cus-

tive and respond to change as an organization will make the

tomer base in their core business create new services in

difference between success and failure. The organization as

areas not adjacent to that core business. The company

a whole must foster a sense of business ownership, in which

then leverages existing customers into using the new ser-

employees feel a sense of personal responsibility for the

vices. However, this represents one-way thinking from the

business, and career ownership, in which employees seek

logic of the company. Establishing an economic zone

ways to utilize their experience and skills. When both man-

requires that a company build up the competitiveness of

agement and employees take a proactive approach to their

each service focusing on the most important concept: be

business and careers, they will be more empowered with

the service of choice among customers. The key to success

on-the-ground skills, flexibility, and the ability to respond to

will be to build superior economic zone services by using

change. In this way, the ANA Group will evolve into a more

the ANA Group brand power to provide more value and

resilient organization.

perform analyses to understand ultimately how to be the

It will be important for the ANA Group to take the neces-

service of choice among customers.

sary and obvious steps in identifying specific areas in which it

The ANA Group has grown on the back of the Air

maximizes strengths, engaging in required investments, and

Transportation Business. Accordingly, the group has yet to

refining its services from the perspective of the customer.

build a wealth of skills and experience in the Non-Airline

The Board of Directors encourages healthy discussions, summarizes

opinions, and advances our governance system, aiming to achieve

sustainable business growth and improve corporate value over

the medium to long term.

There are two main points that I keep in mind when manag-

management promotion, sustainability, legal affairs, and risk

ing the board since I assumed the position of Chair one

management as well as offer new opinions and perspec-

year ago. The first is that the outside directors are regularly

tives to the board. Through this, I expect they will aid the

active and occasionally give harsh criticism. As chair, I

board of directors demonstrate its governance.

encourage internal directors to not only answer questions

Board of directors meetings in fiscal 2022 devoted large

but also express their own opinions in response. Outside

amounts of time to discuss the formulation of the FY2023-

directors want to hear honest opinions based on frontline

25 ANA Group Corporate Strategy and the new

situations directly from the directors in charge. They also

Management Vision, which is being formulated for the first

expect that items discussed at the board of directors meet-

time in 10 years. In fiscal 2023, we will accelerate substan-

ings will be reflected in concrete measures on the front lines

tive discussions to achieve our goals as we receive reports

and utilized in management. Therefore, I made improve-

on progress made in the process of implementing each of

ments by holding town meetings where outside directors

the measures set forth in our Corporate Strategy. It will be

directly communicate with employees in various divisions as

necessary for the board of directors to confirm that major

well as by providing separate opportunities for discussions

themes related to materiality are reflected in each policy

between outside directors, directors in charge, and the

and will lead to the creation of both social value and eco-

secretariat of the board of directors. The second point I

nomic value. As chair, I will work to address these issues to

keep in mind is to summarize the views of the board mem-

further improve the effectiveness of our operations and

bers to help members on the executive side focus on busi-

meet the expectations of our shareholders and the capital

ness operations. The role of the directors is to achieve

markets.

KATANOZAKA Shinya
Chair of the Board of Directors

sustainable business growth and enhance the medium- to

long-term corporate value of the Group. To accomplish this,

directors must enhance the transparency and objectivity of

the board, supporting the executives’ decisions with prompt

and decisive decision-making. Board members with diverse

backgrounds express their opinions from a variety of per-

spectives. This enables us to implement management that

encourages both awareness and decision-making on the

executive side.

In June 2022, Mr. Minegishi joined the board of directors

as an outside director. His frank and rational opinions on

the establishment and growth of our Non-Airline Business,

a new business for our company, stimulate both the direc-

tors in charge and all members of the board of directors for

the better, helping to revitalize the board. In June 2023, the

gender balance of the board of directors improved with the

appointment of Ms. Kajita as an internal director and Ms.

Mitsuhashi as an external auditor. These women will lever-

age their vast knowledge in areas such as ESG

112

113

Consolidated 11-Year Summary

ANA HOLDINGS INC. and its consolidated subsidiaries (Note 1)

For the Year

Operating revenues (Note 4)
Operating expenses
Operating income (loss)
Income (loss) before income taxes
Net income (loss) 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)

Earnings (loss) 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)

(FY) (Note 2)

2022

2021

2020

2019

1,707,484
1,587,454
120,030
114,342
89,477
449,822
(204,026)
(142,909)
245,796
373,104
144,313
264,343
116,892

3,366,724
1,607,918
862,419

190.24
1,833.64
–
470,334

7.0
5.2
3.7
10.8
25.6
1.9
0.5
–
40,507

433,470
35,875
26,408
4,212
73.6
12.1
16.4

529,593
49,901
32,201
34,534
64.5
10.6
16.4

90,265
12,232
8,991
7,775
73.5
7.4
10.0

308,088
805,799

24,119
253,661

1,020,324
1,193,451
(173,127)
(175,374)
(143,628)
(76,413)
230,019
93,646
153,606
(111,948)
147,328
(25,799)
133,364

3,218,433
1,750,108
797,249

(305.37)
1,695.06
—
470,339

(17.0)
(14.1)
(5.3)
(15.9)
24.8
2.2
0.3
—
42,196

70,151
20,524
5,550
825
27.0
3.4
12.6

279,877
34,288
16,382
17,959
47.8
8.2
17.1

37,813
7,863
4,846
4,267
61.6
4.8
7.8

328,750
976,644

24,932
251,332

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

2018

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

Yen (Millions)

2017

2016

2015

2014

2013

2012

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

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

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

U.S. dollars
(Thousands)
(Note 3)

2022

12,787,268
11,888,369
898,899
856,301
670,089
3,368,696
(1,527,941)
(1,070,238)
1,840,754
2,794,158
1,080,753
1,979,652
875,398

25,213,240
12,041,623
6,458,616

1.42
13.73
–

3,246,236

3,966,097

675,990

2,307,256

180,626

Notes: 1. As of March 31, 2023, there were 54 consolidated subsidiaries and 13 equity-method subsidiaries and affiliates.

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 ¥133.53 = US$1, the approximate exchange rate as of March 31, 2023.
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 after excluding payments into and proceeds from withdrawals of time deposits and payments for purchases and proceeds from redemptions of marketable

securities (time and negotiable deposits with maturities exceeding three months)

6. EBITDA = Operating income + Depreciation and amortization
7. Total shareholders’ equity = Shareholders’ equity + Accumulated other comprehensive income

114

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 beginning of fiscal 2017.
9. ROA = (Operating income + Interest and dividend income) / Simple average of total assets

10. ROE = Net income (loss) 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.
* We applied the Accounting Standard for Revenue Recognition as of the beginning of fiscal 2021.

115

Financial / Data Section

Management’s Discussion and Analysis

Economic Conditions

General Economic Overview
During the fiscal year under review, the Japanese economy experi-
enced a moderate recovery. While consumer spending and capital
expenditures picked up gradually, imports and exports showed signs
of weakening.
Looking to the future, the economy is expected to pick up, sup-
ported by easing of restrictions on movement and normalization of
socioeconomic activities. At the same time, unstable international
conditions, including soaring global energy prices and monetary
tightening in the U.S. and European countries, could have a negative
impact on any recovery. The airlines industry in Japan expects the
recovery to continue in leisure demand for domestic routes and in
inbound travel and business demand on international routes.
However, developments in geopolitical risk and the situation in
Ukraine warrant close monitoring.

Fuel Price Trends
Crude oil prices fluctuated widely throughout the year due to con-
cerns about crude oil supply disruptions caused by the deteriorating
situation in Ukraine. At the beginning of the year, crude oil prices rose
sharply due to concern about supply shortages caused by the EU
embargo on Russian crude oil. Crude oil prices began to trend down-
ward in the third quarter in response to fears of a global recession
caused by monetary tightening in various countries and the spread of
COVID-19 in China. As a result, the average price of crude oil was
$92.5 per barrel for the fiscal year under review and $76.8 per barrel
on March 31, 2023.
The market price of Singapore kerosene tracked the price of crude
oil. The average price for the fiscal year was $123.4 per barrel, ending
at $94.8 per barrel on March 31, 2023.

Foreign Exchange Market
The U.S. dollar–yen exchange rate fluctuated widely throughout the
fiscal year. The yen weakened to 150 yen to the dollar in October
against the backdrop of a widening interest rate differential between
Japan and the U.S., while appreciating rapidly in December in
response to policy revisions by the Bank of Japan.
The Japanese yen averaged ¥135.48 per U.S. dollar for fiscal
2022, ending the year at ¥132.86 per U.S. dollar on March 31, 2023.

Air Transport Traffic Trends
International Air Transportation Association (IATA) member airlines
reported a 152.3% year-on-year increase in RPK for scheduled inter-
national flights in 2022. RPK for scheduled domestic flights rose
10.9% for the year. At the same time, RTK in connection with sched-
uled global air cargo increased 32.3%. (Source: IATA World Air
Transport Statistics, 2023)

In Japan, passengers on trunk routes* increased 78.7% year on

year to 39.42 million. The number of passengers on local routes*
increased 85.4% to 51.24 million. In total, passengers on scheduled
domestic flights increased 82.4% to 90.66 million. Cargo volume
increased 14.5% to 0.54 million tons. The number of passengers
carried by Japanese airlines on international flights increased 440.1%
to 9.51 million, while the volume of international cargo handled by

Japanese airlines decreased 16.6% to 1.47 million tons. (Source:
Ministry of Land, Infrastructure, Transport and Tourism, Annual
Summary of 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.

Monthly Prices for Dubai Crude Oil and Singapore Kerosene

(U.S. dollars per barrel)

160

140

120

100

21/4

22/1

23/1

(Year/
Month)

■ Dubai Crude Oil ■ Singapore Kerosene

Source: Bloomberg

Monthly Yen-Dollar Exchange Rate

(Yen / U.S. dollars)

150

140

130

120

110

100

21/4

22/1

23/1

(Year/
Month)

Source: Bloomberg

Global Air Transportation Passenger Volume by Region

RPK (Billions)

9,000

6,000

3,000

5,948

1,823
1,717

1,315

583
381
126

2016

2017

2018

2019

2020

2021

2022

(Left) ■ Total
(Right)

Asia-Pacific

North America

Europe

Middle East

Latin America

Africa

Source: International Air Transport Association (IATA), 2022

3,000

2,000

1,000

0
(CY)

Expenses, and Operating Income (Loss)
In fiscal 2022, we captured passenger demand as it recovered in
stages, recording consolidated operating revenues of ¥1,707.4 billion,
an increase of ¥687.1 billion (67.3%) year on year.
Operating income amounted to ¥120.0 billion compared with an
operating loss of ¥173.1 billion in the previous fiscal year, despite an
increase in flight operation-linked expenses stemming from expanded
flight operations, as we continued with strict cost management
measures.

Review by Segment
The Group operates four reportable segments: Air Transportation,
Airline Related, Travel Services, and Trade and Retail.

Performance for Fiscal 2022

Overview of the ANA Group
The ANA Group (“the Group”), led by holding company ANA
HOLDINGS INC., consists of 133 subsidiaries (including ALL NIPPON
AIRWAYS CO., LTD.) and 37 affiliates. A total of 54 companies are
treated as consolidated subsidiaries, with another 13 treated as
equity-method subsidiaries and affiliates. Group employees num-
bered 40,507 individuals, a decrease of 1,689 compared to the
previous fiscal year-end.
The environment surrounding the airline industry has been improv-
ing rapidly, as restrictions on behavior have eased with respect to
domestic flights and entry restrictions have eased in many countries
with respect to international flights.

In terms of business performance, operating revenues rose signifi-
cantly year on year, supported by a recovery in travel amid the eco-
nomic conditions described above. We posted a profit for the first
time in three fiscal years. Even as we expanded the scale of flight
operations, we continued with strict cost management measures that
curbed increases in operating expenses.
On the balance sheet, retained earnings increased mainly due to an
increase in operating revenues. Cash and deposits together with
marketable securities amounted to ¥1,183.7 billion in liquidity on hand.

Segment Information

Operating Revenues

Operating Income (Loss)

EBITDA

(¥ Millions)

(Fiscal Year)

2022

2021

Change

2022

2021

Change

2022

2021

Change

Air Transportation

Airline Related

Travel Services

Trade and Retail

Subtotal

Others

¥1,539,443 ¥ 885,096

¥654,347

¥124,158

¥(162,932)

¥287,090

¥262,611

¥(22,379)

¥284,990

247,129

206,806

73,815

103,252

46,282

81,694

40,323

27,533

21,558

2,332

(277)

3,511

(660)

(2,105)

549

2,992

1,828

2,962

6,685

(89)

4,442

4,390

(1,971)

1,642

2,295

1,882

2,800

1,963,639

1,219,878

743,761

129,724

(165,148)

294,872

273,649

(18,318)

291,967

Adjustments

(294,221)

(237,684)

(56,537)

(10,293)

38,066

38,130

(64)

599

1,388

(9,367)

(789)

(926)

987

(10,293)

1,886

(9,367)

(899)

(926)

Total (Consolidated) ¥1,707,484 ¥1,020,324

¥687,160

¥120,030

¥(173,127)

¥293,157

¥264,343

¥(25,799)

¥290,142

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 nancial statements.

4. EBITDA = Operating income + Depreciation and amortization

Air Transportation Business
Air Transportation Business operating revenues amounted to
¥1,539.4 billion, a year-on-year increase of 73.9%. This result was
mainly due to the capture of recovering passenger demand as con-
sumers in Japan began to travel outside the home, the government
eased restrictions on movement, and various other countries began
to relax border restrictions. Continued strong cargo unit prices also
contributed to this result, despite weakening cargo demand.
Operating income amounted to ¥124.1 billion compared to an oper-
ating loss of ¥162.9 billion in the previous fiscal year. This result was
mainly due to efforts to control expenses through cost management
and other measures, despite an increase in flight operation-linked
expenses associated with re-scaling our business.

The ongoing situation in Ukraine forced us to bypass Russian
airspace on our European routes. However, the impact on revenues
was limited due to business expansion, particularly on our high-
performing North American routes.
We were named the best airline in three categories, including cabin
cleanliness, in the 2022 World Airline Awards sponsored by
SKYTRAX of the U.K. In addition, the ANA Group was recognized as
the world’s best airline in the Network Category in the On-Time
Performance Awards given by CIRIUM, an entity that analyzes airline
data from around the world.

116

117

Financial / Data Section

Management’s Discussion and Analysis

Changes in Operating Income (Loss) (FY2022 vs FY2021)

(¥ Billions)

Revenues from contracted
maintenance and handling,
Mileage and Card, etc.

Increase in Expenses
+367.2

ANA
Domestic
Passenger

ANA
Cargo &
Mail

ANA Other
Revenues

LCC

+52.4

Sales-
Linked
+38.3

Fuel & Fuel Tax

Depreciation and amortization,
maintenance, personnel,
contracts, aircraft leasing
fee excluding code-share,
others

–20.4

+9.2

Increase in Revenues
+654.3

+249.7

ANA International
Passenger

+363.3

Sales
commissions
and promotion
expenses,
in-flight services,
ground services

+153.7

Operation-
Linked
+35.7

Landing and navigation fees,
code-share costs,
travel expenses for crew

+138.3

Increase in
Operating Income
+287.0

Other Expenses
(Including impact
of cost reduction
measures)

+124.1

–162.9

FY2021
Operating
Income
(Loss)

(¥ Billions)

Operating revenues
Operating expenses
Operating income (loss)

2022

1,539.4
1,415.2
124.1

2021

885.0
1,048.0
(162.9)

Change

YoY (%)

+654.3
+367.2
+287.0

+73.9
+35.0
—

FY2022
Operating
Income

Results by business are as follows.

ANA International Passenger Business
The international passenger business captured demand for connec-
tions between North America and Asia, border restrictions were
eased and travel demand recovered earlier than in other regions.
Business demand from Japan and demand for inbound travel to
Japan began recovering in September 2022 in response to relaxing
border restrictions in Japan. As a result of our efforts to capture this
demand, we recorded significantly higher passenger volume and
revenues than the previous fiscal year, with international passenger
volume recovering to 40% pre-COVID-19 levels.
Our route network increased flights on North American and Asian
routes to and from Narita Airport in the first half of the year to capture
demand for connections between North America and Asia. We also
increased flights on the Haneda–Delhi and Haneda–Sydney routes
beginning in January 2023 to respond to recovering demand from
Japan and inbound travel demand to visit Japan.

ANA International Passenger Business Results

Sales and service efforts included the March 2023 Let’s Go
Overseas With ANA campaign commemorating ANA’s 70th anniver-
sary. Under this campaign, we sold special fares to Asia, Europe, and
the United States to stimulate leisure demand.
We added a Quick & Light Meal and a No Thank You Option
(decline of in-flight meal) to our international in-flight meal pre-order
service beginning with flights departing on March 31, 2023. These
options provide passengers with more freedom and comfort during
their in-flight time while contributing to less food loss on board.
As a result, available seat-kilometers (ASK) and revenue passen-
ger-kilometers (RPK) increased 74.8% and 375.8%, respectively,
while load factor increased 46.6 points to 73.6%. Passenger num-
bers increased 410.3% to 4.21 million, while unit price increased
21.1% to ¥102,899. Operating revenues increased 517.9% to
¥433.4 billion.

(Fiscal Year)

ASK (Millions)

RPK (Millions)

Number of passengers (Thousands)

Load factor (%)

Passenger revenues (¥ Billions)

Unit revenues (¥)

Yield (¥)

Unit price (¥)

* Difference

118

2022

2021

YoY (%)

(¥ Billions)

35,875

20,524

+74.8

26,408

5,550

+375.8

4,212

73.6

433.4

12.1

16.4

825

+410.3

27.0

70.1

+46.6*

+517.9

3.4

+253.5

12.6

+29.9

+21.1

102,899

84,978

750

500

250

2018

2019

2020

2021

2022

(Left)

Passenger Revenues

(Right)

ASK

RPK

Yield

150

100

0
(FY)

* Figures for ASK, RPK, and Yield are indexed using the figures for fiscal 2018 as 100.

ANA Domestic Passenger Business
Amid policies to balance the prevention of COVID-19 with socioeco-
nomic activities, leisure demand in ANA domestic passenger opera-
tions recovered significantly beginning in the second half of the year,
assisted by Nationwide Travel Support and other measures. Amid the
impact of an 8th wave of COVID-19 infections, we launched a
¥7,000 one-way flight to any domestic destination, a program to
commemorate the ANA 70th anniversary. We also endeavored in
other ways to attract new customers and stimulate demand, resulting
in higher passenger volume and revenue year on year, with domestic
passenger volume recovering to 70% of pre-COVID-19 levels.
By the third quarter, all Boeing 777 aircraft with refurbished engines
were in service in our route network. We shifted to wide-body aircraft
and added extra flights, mainly on weekends, during the year-end
and New Year holidays, and spring break, working to capture the
recovery in demand.

ANA Domestic Passenger Business Results

(Fiscal Year)

ASK (Millions)

RPK (Millions)

2022

2021

YoY (%)

49,901

34,288

+45.5

32,201

16,382

+96.6

Number of passengers (Thousands)

34,534

17,959

+92.3

Load factor (%)

Passenger revenues (¥ Billions)

Unit revenues (¥)

Yield (¥)

Unit price (¥)

* Difference

64.5

529.5

10.6

16.4

47.8

+16.8*

279.8

+89.2

8.2

+30.0

17.1

15,335

15,584

(¥ Billions)

750

500

250

Sales and service efforts included the updated ANA VALUE
TRANSIT, a transit fare for specific segments, beginning with reserva-
tions in January 2023. This update improved customer convenience
by offering expanding options for transit flights to a maximum of three
flights. In December 2022, ANA launched a new concept called The
Premium Kitchen for in-flight meals in premium class on domestic
flights. ANA updated menu choices based on customer feedback,
and disposable plastic containers used for in-flight meals were
replaced with paper containers, etc., to promote ESG initiatives
further.
As a result, ASK and RPK increased 45.5% and 96.6%, respec-
tively, while load factor increased 16.8 points to 64.5%. Passenger
numbers increased 92.3% to 34.53 million, while unit price
decreased 1.6% to ¥15,335. Passenger revenues increased 89.2%
to ¥529.5 billion.

150

100

0
(FY)

–3.7

–1.6

2018

2019

2020

2021

2022

(Left)

Passenger Revenues

(Right)

ASK

RPK

Unit Price

* Figures for ASK, RPK, and Unit Price are indexed using the figures for fiscal 2018 as 100.

ANA Cargo and Mail Business
International cargo operations experienced the negative impact of
declining demand for automotive components and fewer flights
operated using passenger aircraft as we worked to capture passen-
ger demand. As a result, cargo weight was lower year on year.
However, we maintained high unit prices by capturing cargo with
higher unit prices, including large special commercial products.
As a result, international cargo volume for fiscal 2022 amounted to
800 thousand tons (down 17.5% year on year), while operating
revenues amounted to ¥308.0 billion (down 6.3%). Available ton-
kilometers (ATK) decreased 5.2% year on year and revenue ton-
kilometers (RTK) decreased 20.0%.

Domestic cargo operations saw a 47.6% increase in ATK com-
pared with the previous fiscal year, while RTK decreased 0.2%.
Although demand for inter-company transport was sluggish, home
delivery demand remained strong throughout the year. Cargo volume
increased 0.9% to 0.25 million tons, and cargo revenues decreased
3.3% to ¥24.1 billion.
Operating revenues for international and domestic mail business
amounted to ¥6.2 billion and ¥2.8 billion, year-on-year increases of
15.1% and 8.7%, respectively.
As a result, the ANA Cargo and Mail Business recorded fiscal 2022
operating revenues of ¥341.3 billion, a year-on-year decrease of 5.6%.

119

Financial / Data Section Management’s Discussion and Analysis

ANA Cargo and Mail Business Results

International Cargo Business Results

(Fiscal Year)

2022

2021

YoY (%)

Cargo and mail services revenues (¥ Billions)

341.3

361.7

–5.6

International cargo

ATK (Millions)

RTK (Millions)

6,605

6,966

–5.2

4,147

5,186

–20.0

Cargo volume (Thousand tons)

805

976

–17.5

Cargo revenues (¥ Billions)

308.0

328.7

–6.3

Unit price (¥/kg)

Mail revenues (¥ Billions)

382

6.2

337

5.4

+13.6

+15.1

Domestic cargo

ATK (Millions)

RTK (Millions)

Cargo volume (Thousand tons)

1,413

281

253

957

281

251

Cargo revenues (¥ Billions)

24.1

24.9

Unit price (¥/kg)

Mail revenues (¥ Billions)

2.8

2.6

+47.6

–0.2

+0.9

–3.3

–4.1

+8.7

LCC (Peach)
With the easing of restrictions on domestic travel and border control
measures in various countries, Peach expanded the scale of domes-
tic flight operations and resumed previously suspended international
flights to capture leisure and inbound travel demand. As a result,
both passenger numbers and revenues outperformed the previous
fiscal year.

In our route network, we responded to increasing domestic route

demand by expanding flight operations, including increasing the
number of flights on the Narita–Sapporo (New Chitose) and Narita–
Fukuoka routes. On international routes, we resumed the Kansai–
Incheon route in August 2022, followed by Kansai–Taipei,
Kansai–Hong Kong, and others. In March 2023, we launched the
new Nagoya (Chubu)–Taipei route.
Sales and service efforts included the new Yadotsuki Tabi Kuji
package, launched in February 2023 on the heels of Tabi Kuji
(random-destination tickets) in the previous fiscal year. In this initia-
tive, we created demand through a unique travel experience that
leaves the travel destination completely to chance.
As a result, ASK and RPK increased 55.6% and 85.5%, respec-
tively, while load factor increased 11.9 points to 73.5%. Passenger
numbers increased 82.2% to 7.77 million, while unit price increased
31.0% to ¥11,610. Operating revenues increased 138.7% to ¥90.2
billion.

(¥ Billions)

360
1,600

1,200
240

800

120
400

0
0

2018
2013

2019
2014

2020
2015

2021
2016

2022
2017

(Left)

International Cargo Revenues

(Right) ATK

RTK

Unit Price

300
200

150
200

100

100
50

0
0
(FY)

* Figures for ATK, RTK, and Unit Price are indexed using the figures for fiscal 2018 as 100.

LCC Business Performance (Peach Aviation Limited)

(Fiscal Year)

ASK (Millions)

RPK (Millions)

Number of passengers (Thousands)

Load factor (%)

Passenger revenues (¥ Billions)

Unit revenues (¥)

Yield (¥)

Unit price (¥)

* Difference

(¥ Billions)

120
1,600

1,200
80

800

40
400

0
0

18/4

2022

2021

YoY (%)

12,232

8,991

7,775

73.5

90.2

7.4

10.0

7,863

4,846

4,267

+55.6

+85.5

+82.2

61.6

+11.9*

37.8

+138.7

4.8

7.8

11,610

8,862

+53.5

+28.7

+31.0

150
200

150
100

100

50
50

0
0
(FY)

2018
2013

2019
2014

2020
2015

2021
2016

2022
2017

(Left) ■ Passenger Revenues

(Right) ASK

RPK

Unit Price

Operating Expenses
Air Transportation Business operating expenses increased ¥367.2
billion year on year to ¥1,415.2 billion. Specific expense amounts and
explanations of year-on-year changes are described below.

Breakdown of Operating Revenues and Expenses

(¥ Millions)

(Fiscal Year)

2022

2021

Change

Segment operating revenues

¥1,539,443

¥ 885,096

¥654,347

International Passenger

433,470

70,151

363,319

Cargo

Mail

308,088

328,750

(20,662)

6,268

5,448

820

Domestic

Passenger

529,593

279,877

249,716

Cargo

Mail

LCC revenues

Other revenues

Segment operating
expenses

24,119

24,932

2,898

2,666

(813)

232

90,265

37,813

52,452

144,742

135,459

9,283

1,415,285

1,048,028

367,257

Fuel and fuel tax

347,729

193,966

153,763

Landing and navigation fees

60,540

42,981

Aircraft leasing fees

133,388

113,054

17,559

20,334

Depreciation and
amortization

138,453

140,553

(2,100)

Aircraft maintenance

138,049

96,181

Personnel

193,416

158,505

41,868

34,911

Sales commissions and
promotion

Contracts

Other expenses

Segment operating income
(loss)

47,630

27,618

20,012

207,023

168,836

149,057

106,334

38,187

42,723

¥ 124,158

¥(162,932)

¥287,090

Fuel and fuel tax expenses amounted to ¥347.7 billion, a ¥153.7
billion (79.3%) increase year on year. This expense accounted for
24.6% of Air Transportation Business operating expenses, compared
with 18.5% in the previous fiscal year.
This ¥153.7 billion increase was mainly due to an increase in ANA
unit price factors (including hedging effectiveness) of approximately
¥96.0 billion, and increases in consumption volume factors of
approximately ¥45.0 billion for ANA and approximately ¥13.0 billion
for the LCC.

Domestic and international passenger flights increased 32.2% and
7.8%, respectively (excluding Peach Aviation flights). Freighter flights
decreased 17.7%. Passenger route landing and navigation fees
amounted to ¥60.5 billion, up ¥17.5 billion (40.9%) year on year due
to measures to reduce landing fees and other costs, despite the
increased number of flights.

Aircraft leasing fees increased ¥20.3 billion (18.0%) to ¥133.3 billion,
mainly due to increases in domestic code-share flights operated by
other airlines along with a recovery in passenger demand.

Depreciation and amortization expenses decreased ¥2.1 billion
(1.5%) to ¥138.4 billion. This result was mainly due to an increase in
fully amortized intangible assets and the sale of certain assets.

Aircraft maintenance expenses increased ¥41.8 billion (43.5%) to
¥138.0 billion. This increase was due to an increase in maintenance
frequency stemming from the increase in aircraft flights.

Personnel expenses increased ¥34.9 billion (22.0%) year on year to
¥193.4 billion, mainly due to the termination of monthly wage reduc-
tions and an increase in bonuses.

Sales commissions and promotion expenses increased ¥20.0 billion
(72.5%) year on year to ¥47.6 billion stemming from an increase in
sales commissions in line with higher passenger revenues.

Contract expenses increased ¥38.1 billion (22.6%) year on year to
¥207.0 billion. Ground handling contracts and other contracted
operations increased due to an increase in the number of passenger
flights.

Other expenses increased ¥42.7 billion year on year (40.2%) to
¥149.0 billion. The main factor behind this increase was an increase
in in-flight service expenses due to an increase in the number of
passengers.

Others
Other operating revenues in the Air Transportation Business
amounted to ¥144.7 billion, a 6.9% increase year on year. Results

include incidental revenues from mileage memberships, in-flight
sales, contracted maintenance, etc.

* Figures for ASK, RPK, and Unit Price are indexed using the figures for fiscal 2018 as 100.

120

121

Financial / Data Section

Management’s Discussion and Analysis

Airline Related Business
Airline related business operating revenues rose ¥40.3 billion (19.5%)
year on year to ¥247.1 billion with the easing of Japan’s border con-
trol measures and a recovery in passenger demand driving growth in
ground handling services, including boarding and baggage loading,
and in-flight meal production. Operating income amounted to ¥2.3
billion compared with an operating loss of ¥0.6 billion in the previous
fiscal year.

Performance in the Airline Related Segment

(¥ Millions)

Trade and Retail
Operating revenues increased year on year due to higher sales at
airport merchandise store ANA FESTA and the duty-free ANA DUTY
FREE SHOP as airline demand recovered. Strong demand in the
semiconductor market led to increased transaction volume in the
electronics business, which also contributed to this result.
As a result of the preceding, fiscal 2022 Trade and Retail business
operating revenues rose ¥21.5 billion (26.4%) year on year to ¥103.2
billion. Operating income increased ¥2.9 billion (539.5%) to ¥3.5
billion.

(Fiscal Year)

2022

2021

Change

Performance in the Trade and Retail Segment

(Fiscal Year)

2022

2021

Change

Segment operating revenues

¥103,252

¥81,694

¥21,558

Segment operating expenses

99,741

81,145

18,596

Segment operating income

¥ 3,511

¥ 549

¥ 2,962

(¥ Millions)

Others
Despite an increase in lounge operations, quarantine-related screen-
ing operations, and other contract services, operating revenues
declined year on year due to lower sales in the real estate business
as a result of the sale of a major property in the previous fiscal year,
among other factors.
As a result, this business recorded operating revenues of ¥38.0
billion (0.2% decrease), essential level with the previous fiscal year.
Operating income amounted to ¥0.5 billion, a decrease of ¥0.7 billion
(56.8%).

Performance in the Others Segment

(Fiscal Year)

2022

2021

Change

Segment operating revenues

¥38,066

¥38,130

Segment operating expenses

37,467

36,742

Segment operating income

¥ 599

¥ 1,388

¥ (64)

725

¥(789)

(¥ Millions)

Segment operating revenues

¥247,129

¥206,806

¥40,323

Segment operating expenses

244,797

207,466

37,331

Segment operating income (loss)

¥ 2,332

¥ (660)

¥ 2,992

Travel Services
Passenger demand recovered steadily for domestic travel. The
Nationwide Travel Support program introduced in the second half of
the year led to an increase in dynamic travel package sales, while
ANA Traveler’s Hotel products, eligible for purchase using miles
points, also performed well. In addition, the business endeavored to
expand new services, including the launch of ANA Traveler’s Golf, an
online tee-time reservation service, in September 2022. In April 2022,
the business resumed tours to Hawaii for the first time in nearly two
years, expanding the number of overseas travel destinations gradually
since.
As a result of the preceding, fiscal 2022 Travel Services operating
revenues amounted to ¥73.8 billion, a ¥27.5 billion (59.5%) increase
year on year. Operating loss narrowed compared with the previous
fiscal year, amounting to ¥0.2 billion (¥2.1 billion operating loss in the
previous fiscal year).

In October 2022, the Group updated the ANA Mileage Club app to
serve as a gateway to various Group services useful in everyday lives.
In January 2023, the Group opened the ANA Mall, a new online
shopping mall where consumers can earn and use miles. We will
continue to offer higher levels of convenience for our customers and
seek to create a world in which people live in a mileage-based
ecosystem.

Performance in the Travel Services Segment

(¥ Millions)

(Fiscal Year)

2022

2021

Change

Segment operating revenues

¥73,815

¥46,282

¥27,533

Domestic package products

45,954

26,243

19,711

International package products

1,512

171

Other revenues

26,349

19,868

1,341

6,481

Segment operating expenses

74,092

48,387

25,705

Segment operating loss

¥ (277)

¥ (2,105)

¥ 1,828

122

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, 2023, we have secured commitment line agreements totaling
¥100.0 billion with several financial institutions.
The group has access to the Japan Bank for International
Cooperation (JBIC)’s guarantee system for investments in aircraft, our
primary assets.

Overview of Fiscal 2022
Free cash flow amounted to ¥245.7 billion (sum of cash flows from
operating activities and investing activities). Net cash used in financ-
ing activities totaled ¥142.9 billion. As a result, cash and cash equiv-
alents increased ¥105.4 billion from the beginning of the fiscal year,
amounting to ¥726.4 billion at the end of the fiscal year.

Cash Flows from Operating Activities
After adjusting the ¥114.3 billion in income before income taxes for
depreciation and amortization, notes and accounts payable, notes
and accounts receivable, and other non-cash items, net cash pro-
vided by operating activities amounted to ¥449.8 billion, compared to
net cash used of ¥76.4 billion in the previous fiscal year.

Non-Operating Income (Loss) / Expenses,
Special Income (Loss) / Expenses
Fiscal 2022 non-operating and special income and expenses
amounted to a loss of ¥5.6 billion. Depreciation and amortization
expenses on inactive aircraft was transferred to non-operating
expenses, which resulted in the recording of grounded aircraft
expenses.

Non-Operating Income (Loss) / Expenses, Special Income

(Loss) / Expenses

(¥ Millions)

(Fiscal Year)

2022

2021

Change

Non-Operating (Loss) Income

¥ 28,589

¥40,551

¥(11,962)

Interest income

Dividend income

Equity in earnings of unconsoli-
dated subsidiaries and affiliates

Foreign exchange gain, net

Gain on sales of assets

Gain on donation of non-current
assets

Subsidies for employment
adjustment

838

1,092

801

2,306

7,854

1,060

297

988

—

541

104

801

2,540

4,256

(234)

3,598

653

407

5,043

23,955

(18,912)

Other, net

9,595

7,862

1,733

Non-Operating Expenses

(36,809)

(52,359)

15,550

Interest expenses

(24,845)

(25,343)

498

Equity in losses of unconsolidated
subsidiaries and affiliates

—

(2,031)

2,031

Loss on sales of assets

(85)

(677)

Loss on disposal of assets

(3,233)

(7,974)

Grounded aircraft expenses

(4,638)

(12,697)

592

4,741

8,059

(371)

Other, net

Special Income (Loss)

Gain on sales of investment
securities

Gain on sales of property and
equipment

Gain on reversal of foreign cur-
rency translation adjustments

(4,008)

(3,637)

3,574

28,310

(24,736)

—

8,278

(8,278)

1,587

20,032

(18,445)

1,987

—

1,987

Special Expenses

(1,042)

(18,749)

17,707

Loss on valuation of investment
securities

Impairment loss

Loss on cancellation of contracts

(1,042)

(5,337)

4,295

—

(9,357)

(4,055)

9,357

4,055

Total

¥ (5,688)

¥ (2,247)

¥ (3,441)

Net Income (Loss) Attributable to Owners of the Parent
As a result of the preceding, income before income taxes amounted
to ¥114.3 billion compared with a loss of ¥175.2 billion in the previ-
ous fiscal year. After income taxes, municipal taxes, business taxes,
and other adjustments, net income attributable to owners of the
parent amounted to ¥89.4 billion compared with a net loss of ¥143.6
billion in the previous fiscal year. Income per share was ¥190.24
(compared to loss of ¥305.37 in the previous fiscal year).
Comprehensive income amounted to ¥63.2 billion compared with
a comprehensive loss of ¥93.7 billion in the previous fiscal year,
mainly due to the recording of net income attributable to owners of
the parent.

123

Financial / Data Section

Management’s Discussion and Analysis

Cash Flows from Investing Activities
Net cash used in Investing activities was ¥204.0 billion, compared to
net cash provided by financing activities of ¥230.0 billion in the previ-
ous fiscal year. This result was mainly due to cash outlays for capital
expenditures and payments into time deposits. Substantial cash
flows from investing activities after excluding net outlays of ¥127.3
billion from payments into and proceeds from withdrawals of time
deposits and payments for purchases and proceeds from redemp-
tions of marketable securities (time and negotiable deposits with
maturities exceeding three months) amounted to ¥76.7 billion.

Free Cash Flow
Net cash provided by operating activities totaled ¥449.8 billion. Since
net cash used in investing activities was ¥204.0 billion, free cash flow
for fiscal 2022 amounted ¥245.7 billion, an increase of ¥92.1 billion
compared with the previous fiscal year. Substantial free cash flow
after excluding payments into and proceeds from withdrawals of time
deposits and payments for purchases and proceeds from redemp-
tions of marketable securities (time and negotiable deposits with
maturities exceeding three months) amounted to ¥373.1 billion,
compared with a net expenditure of ¥111.9 billion in the previous
fiscal year.

Cash Flows from Financing Activities
Net cash used in financing activities was ¥142.9 billion, compared to
net cash provided by financing activities of ¥93.6 billion in the previ-
ous fiscal year. This result was mainly due to redemption of convert-
ible bonds with stock acquisition rights and repayments of loans.

18/4

Capital Expenditures and Aircraft
Procurement

Capital Expenditures
From fiscal 2020, the ANA Group has been temporarily restraining
the scale of investment, particularly in aircraft, and reviews the timing
of investment as appropriate.
Capital expenditures for fiscal 2022 amounted to ¥116.8 billion, a
decrease of 12.4% year on year.
By segment, Air Transportation Business capital expenditures
decreased 11.8% year on year to ¥115.1 billion. Airline Related
Business expenditures increased 1,316.0% to ¥2.1 billion, while
Travel Services Business expenditures increased 260.9% to ¥1.4
billion. Trade and Retail Business expenditures increased 154.9% to
¥1.1 billion, and Others decreased 69.4% to ¥0.1 billion.

Capital Expenditures* / Depreciation and Amortization

(¥ Billions)

400

375.8

351.3

300

200

100

159.5

175.7

156.7

176.3

133.3

157.5

148.2

116.8

2018

2019

2020

2021

2022

(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 capac-
ity 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 2022
Based on the fleet strategy described previously, our total number of
aircraft was 276 as of the end of fiscal 2022, level with the previous
fiscal year.
The table below shows changes in the number of aircraft by type
for the fiscal year under review. The ANA Group added seven aircraft,

consisting of one Boeing 787-10, one Boeing 787-9, two Airbus
A321-200neoLRs, and three Airbus A320-200neos.
Meanwhile, the group retired seven aircraft, consisting of two
Boeing 777-300s, three Boeing 767-300s, and two Airbus
A320-200s.

Changes in the Number of Aircraft in Fiscal 2022

( ) changes

Aircraft

Number of Aircraft

Owned

Leased

Airbus A380

Boeing 777-300

Boeing 777-200

Boeing 777F

Boeing 787-10

Boeing 787-9

Boeing 787-8

Boeing 767-300

Boeing 767-300F (Freighter)

Airbus A321-200neoLR

Airbus A321-200neo

Airbus A321-200

Airbus A320-200neo

Airbus A320-200

Boeing 737-800

De Havilland Canada DASH 8-400

Total

(–2)

(+1)

(–3)

(+2)

(+3)

(–2)

(+1)

(–3)

(–1)

(+1)

(+2)

(+3)

(–2)

276

(±0)

170

(–3)

106

(+3)

Aircraft Procurement Plan for Fiscal 2023
We plan to add a total of 13 aircraft during fiscal 2023. These 13
aircraft consist of four Boeing 787-10s, four Boeing 787-9s, and five
Airbus A320-200neos.
We also plan to retire eight Airbus A320-200s.

124

125

Financial / Data Section

Management’s Discussion and Analysis

Financial Position

Assets
Total assets as of March 31, 2023 amounted to ¥3,366.7 billion, an
increase of ¥148.2 billion compared to March 31, 2022.
Total current assets amounted to ¥1550.8 billion, up ¥256.8 billion
from the end of the previous fiscal year, mainly due to an increase in
cash and deposits. Cash and deposits amounted to ¥603.6 billion,
an increase of ¥151.0 billion compared to the end of the previous
fiscal year. Marketable securities increased ¥81.7 billion to ¥580.0
billion. As a result, liquidity on hand amounted to ¥1,183.7 billion, up
¥232.7 billion year on year. Total non-current assets at the end of the
fiscal year stood at ¥1,814.9 billion, down ¥107.9 billion from one
year earlier.

Liabilities
Total liabilities as of March 31, 2023 amounted to ¥2,496.3 billion, up
¥81.3 billion from one year earlier.
Current liabilities increased ¥195.5 billion year on year to ¥883.4
billion, mainly due to an increase in contract liabilities resulting from
expanded airline ticket bookings. Total long-term liabilities amounted
to ¥1,612.9 billion, a decrease of ¥114.1 billion.

Interest-bearing debt, including finance lease obligations,

decreased ¥142.1 billion to ¥1,607.9 billion, mainly due to redemp-
tions of convertible bonds with stock acquisition rights and repay-
ments of loans. Our debt/equity ratio amounted to 1.9 times, a
decrease of 0.3 point compared with the end of the previous fiscal
year. Net debt/equity ratio on a net interest-bearing debt basis was
0.5 times.
Given the current external environment, we intend to maintain the
current level of cash on hand for the time being. However, we plan to
reduce total assets over the medium term and shift to more efficient
financial management.

Interest-Bearing Debt / Debt/Equity Ratio*

(¥ Billions)

2,000

1,500

1,000

500

18/4

(Times)

1,607.9
1.9

0.5

424.1

2.4

1.8

1.2

0.6

2018

2019

2020

2021

2022

(Left)

Interest-Bearing Debt

Net Interest-Bearing Debt

(Right)

Debt / Equity Ratio

Net Debt / Equity Ratio

(FYE)

* Excluding off-balanced lease obligations

Interest-Bearing Debt

(¥ Millions)

Bond Ratings

Fuel and Exchange Rate Hedging

(End of Fiscal Year)

Short-term debt:

2022

2021

Change

¥ 209,850 ¥ 236,902

¥ (27,052)

Short-term loans

92,170

100,070

(7,900)

Current portion of long-
term loans

84,633

62,775

21,858

Current portion of bonds

30,000

—

30,000

Current portion of bonds
with stock acquisition
rights

—

70,000

(70,000)

Finance lease obligations

3,047

4,057

(1,010)

Long-term debt*:

1,398,068

1,513,206

(115,138)

Bonds

155,000

185,000

(30,000)

Convertible bonds with
stock acquisition rights

220,000

—

Long-term loans

1,017,585

1,102,218

(84,633)

Finance lease obligations

5,483

5,988

(505)

Total interest-bearing debt

¥1,607,918 ¥1,750,108

¥(142,190)

* Excluding current portion of long-term loans and current portion of bonds

Net Assets
Net assets as of March 31, 2023 amounted to ¥870.3 billion,
an increase of ¥66.9 billion compared to the end of the previous
fiscal year.
Shareholder’s equity as of March 31, 2023 amounted to ¥794.4
billion, an increase of ¥92.0 billion compared to the end of the previ-
ous fiscal year.
Total accumulated other comprehensive income amounted to
¥67.9 billion, a decrease of ¥26.9 billion compared to the end of the
previous fiscal year. This was mainly due to a decrease in deferred
gain on derivatives under hedge accounting.
As a result, total shareholders’ equity increased ¥65.1 billion from
the end of the previous fiscal year, amounting to ¥862.4 billion.
Shareholders’ equity ratio increased 0.8 point to 25.6%.
Book value per share (BPS) at the end of the fiscal year was
¥1,833.64, compared to ¥1,695.06 as of the end of the previous
fiscal year.

The company has obtained credit ratings on its various long-term
bonds from the Japan Credit Rating Agency, Ltd. (JCR) and Rating
and Investment Information, Inc. (R&I).
Bond ratings as of March 31, 2023 were as follows:

Bond Ratings

Issuer rating

Outlook

* Shifted to positive on April 14, 2023

JCR

A–

Stable

R&I

BBB+

Stable

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.
Certain employees are entitled to additional benefits upon retire-
ment. 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

(¥ Millions)

(Fiscal Year / End of Fiscal Year)

2022

2021

Retirement benefit obligation

¥(217,079)

¥(217,959)

Plan assets at fair value

57,568

61,524

Net liability arising from defined benefit obli-
gation in the consolidated balance sheet

(159,511)

(156,435)

Liability for retirement benefits

(161,129)

(157,395)

Asset for retirement benefits

1,618

960

Net liability arising from defined benefit
obligation in the consolidated balance sheet

(159,511)

(156,435)

Net periodic benefit costs

14,765

14,364

Main basis for actuarial calculations

Discount rates

0.1–1.5% 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

¥4,587

¥3,884

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 rising fuel surcharges and foreign currency revenues
associated with growth in ANA’s international business.
The Group conducts fuel hedging (for ANA) three years in advance
of the applicable period after considering fuel surcharge revenues.
The Group hedges U.S. dollar payments for ANA HOLDINGS and
ANA 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 2022 and Plans for Fiscal 2023
Although passenger demand has been recovering during the year
under review, the impact of COVID-19 on Group performance to date
has been significant. Our immediate task is to restore and strengthen
the Group financial base. Therefore, it is with regret to announce that
we have decided to not pay a dividend for the year under review.
Dividends for the next fiscal year remain undecided at this stage. We
intend to resume dividend payments as quickly as possible by
achieving our profit targets.

126

127

Financial / Data Section

(2) Major Risks
1. Addressing climate change issues is becoming more

important and urgent.

Summary
Aircraft operations emit CO2 and other greenhouse gases. Reducing
these emissions is a pressing matter for the group. The ANA Group
is working to achieve net-zero CO2 emissions by 2050. To this end,
we aim to replace aircraft with more fuel-efficient models and utilize
sustainable aviation fuel (SAF). SAF is jet fuel with significantly lower
CO2 emissions than conventional fuels throughout the life cycle,
from raw material production and collection to combustion. At this
point in time, there are no technical prospects indicating that SAF
will be in sufficient supply on a stable basis at a reasonable price.
If SAF is not in stable or sufficient supply, the group may be

forced to purchase CO2 emission credits or allowances from outside
carbon reduction programs, which may increase operating
expenses. If SAF prices remain high, the operating cost of aircraft
may increase, affecting group profitability. High operating costs
could also affect competitiveness against other modes of transpor-
tation, such as railway and ocean transportation, as we must pass
on costs in the form of higher fares.

In the event that group plans to reduce CO2 emissions do not
progress as targeted, customers may prefer other modes of trans-
portation, such as rail, which emit relatively lower levels of CO2. If an
adequate supply of SAF cannot be sourced in Japan, group aircraft
may encounter restrictions or limitations in access among certain
countries or regions that have adopted strict environmental
standards.

Changes and Outlook
We believe that issues related to climate change represent urgent
worldwide matters, and that addressing this risk is of extremely high
importance and priority. We also believe that the aviation industry in
general and the ANA Group, in particular, may be required to take
more stringent and sophisticated measures to address this risk
more quickly in the future.

Response
In addition to taking proactive measures, including replacing aircraft
with newer, more fuel-efficient types, we will work to establish an
SAF development and supply system through public-private part-
nerships (including other companies in the industry), SAF manufac-
turers, and the government.

The ANA Group discloses information in line with the recommen-

dations of the Task Force on Climate-related Financial Disclosures
(TCFD) on our corporate website.
(https://www.ana.co.jp/group/en/csr/environment/goal/)

Operating Risks

As a corporate group whose core business is air transportation, we
consider safety to be our most important social mission and con-
sider any damage or impediment to this mission to be the most
important risk we face. In addition to the severe impact of the
COVID-19 pandemic over the past several years, we face a variety
of other risks, including risks related to climate change, which has
increased in importance and urgency, and risks related to interna-
tional affairs, which are becoming increasingly uncertain.

The following is a summary of the risks as of the end of the
current fiscal year that the ANA Group believes may have a signifi-
cant impact on investor decisions. The following includes forward-
looking statements, which may not be consistent with actual
conditions, and may omit other risks that affect the group.

(1) Most Important Risk
The most important risk to the ANA Group is the risk of damage or
impairment to safety.
Summary
Safety is the foundation of our business and our promise to the
public. In case of any event that damages or impedes safety, it will
have a major negative impact on the group. In particular, any human
casualties could shake the foundations of the group’s social credibil-
ity and trust. In the event of an airline accident or other incident that
results in personal or property damage, we may be held liable for
compensation for such damages. If safety is impaired or compro-
mised, the impact could be far-reaching, even leading to a decline in
group revenues over the medium term as customers become
hesitant to fly with the group or choose to fly with another airline.

In the event that a manufacturing defect or other issue is discov-

ered in an aircraft, we may be forced to suspend the operation of
said aircraft as a precautionary measure to ensure safety. In such
cases, however, ANA Group business operations could be affected
by flight cancellations or reductions due to a shortage of available
aircraft.

Changes and Outlook
We believe this risk to be the most important risk for the ANA
Group.

Response
The ANA Group has an organization dedicated to the promotion of
safety. This team conducts safety quality audits and has built a
sustainable mechanism to ensure safety. Beyond reactive safety risk
management, we engage in safety risk management that incorpo-
rates preventive and predictive measures. We pursue further safety
improvements through risk management focusing factors that
include the Three Task Categories (First Time Task, Procedure
Changes, and Task After Extended Time Gap) and fatigue risk
management for flight crew and flight attendants. Further, we
provide visibility to safety through safety performance indicators
(SPI) and engage in numerous other means to improve safety
further. At the same time, we conduct ongoing and recurring
education and training for flight crew, flight attendants, and other
employees involved directly in aircraft operations. We also provide
constant safety awareness activities for all employees in the ANA
Group. In these ways, and through the ANA Group Safety Education
Center, we strive to foster and strengthen a corporate group culture
committed to safety. We also work closely with aircraft manufactur-
ers and other parties to exchange information and opinions that
support safety and high-quality operations.

2. Increased risks due to instability in the international

situation

Summary
The ANA Group has expanded our international business in search
of further growth opportunities. However, international affairs have
become increasingly uncertain due to U.S.-Chinese frictions, the
Russia-Ukraine situation, the emergence of third-party powers, etc.
Other uncertainties regarding future events have also emerged.

International air transportation has grown against the backdrop

of economic globalization. However, if this trend stagnates or
reverses, or if peace fails due to war or conflict, etc., ANA Group
revenues could be affected negatively due to slow demand for
business travel or a decrease in demand for tourism.

Instabilities in international affairs could affect not only our
international business but also our domestic business, caused by
lower inbound demand (foreign tourists visiting Japan), etc. In
addition, instabilities could force aircraft to stop flying over or reroute
around war or conflict zones. The impact of these costs could be
far-reaching.

Changes and Outlook
Uncertainty about the direction of international affairs and the
globalization of economic activities is increasing. We believe there is
a growing need to manage and address these matters as risks.

Response
In developing our international business, we focus not only on
short-term profitability when building an airline network, but also on
the risks associated with the global situation. We will continue to
focus on this risk in the future. The ANA Group will also take care
that we do not rely overly on passenger acquisition in certain
countries or regions overseas, but rather strive for a balanced
approach.

In the event that an emergency response is required to an
escalation in the global situation, we will be flexible in altering flight
plans and routes to mitigate the impact.

3. Outbreaks of large-scale infectious diseases have a

tremendous impact on the ANA Group.

Summary
The ANA Group was impacted severely by the COVID-19 pandemic.
If a large-scale outbreak of infectious disease were to occur again in
the future, demand for our services could decline drastically due to
restrictions or prohibitions on travel, having a significant impact on
ANA Group business performance. Controlling Air Transportation
Business expenditures in the short term will not be easy, since
aircraft expenses, personnel expenses, and other fixed costs
account for a large portion of our business. In addition, measures to
curb business expenditures could affect group business perfor-
mance, even during the phase of recovery in demand, as a certain
amount of time would be required to rebuild business structures.

Response
The ANA Group secured passenger aircraft and freighters as
resources allowing for a proactive response to the movement of
goods, even when personal travel has declined. At the same time,
we are able to serve personal travel to limited demand in the most
appropriate approach through our three brands: ANA, Peach, and
AirJapan. We are also diversifying our business structure, expanding
revenue domains not linked to the Air Transportation Business and
expanding the ANA Economic Zone for the sustainable growth of
the ANA Group.

4. The impact of a system failure is significant.
Summary
The ANA Group seeks to systematize business operations to
provide air transportation services of ever-higher quality and effi-
ciency. The potential impact of system failures on our business
continues to increase, regardless of whether the failure is caused by
internal or external factors, such as a cyberattack. In the event of a
systems failure related to aircraft operations, it may become difficult
to operate aircraft. And in the event of a failure in related systems
such as reservations, payments settlements, and boarding manage-
ment, it may become impossible to accept and settle reservations
or manage boarding at airports. In effect, the group would not be
able to provide air transportation services.

Changes and Outlook
We believe the risk of system failures increases with increases in
systems sophistication, interconnectivity, and access. Further, we
are seeing an increasing number and sophistication of cyberattacks
in society in general. We believe there is a growing social demand to
prevent and reduce this risk.

Response
We established the Group IT Management Department as a special-
ized organization with responsibility for systems operations and
management for the ANA Group. This department is also respon-
sible for preventing systems failures and building a comprehensive
and multifaceted operating system to reduce the impact of system
failures and to restore systems as soon as possible. The group is
also bolstering our response to intangible aspects through improved
education and system failure-response training for our employees.

5. Dealing with the risk of information leakage is

increasingly important.

Summary
The ANA Group retains a great deal of information, which includes
the personal data of ANA Mileage Club members. In the event of an
unauthorized leakage of such information, the ANA Group may be
sued for damages, ordered to pay fines and penalties by govern-
ments, etc., and lose the trust of our customers and society,
thereby experiencing a competitive disadvantage.

Changes and Outlook
In general, climate change (global warming) is said to increase the
risk of infectious disease, and we believe this risk will be increasingly
important to address in the future.

Changes and Outlook
We believe the need to address this risk appropriately is only rising
in light of heightened social awareness and norms regarding infor-
mation handling, based on increasingly strict laws and regulations.

128

129

Financial / Data Section

Operating Risks

Response
We engage in appropriate information management in accordance
with the laws and regulations of each country. We also implement
computer virus countermeasures, email security checks, monitoring
for unauthorized operations, restrictions on employee access to
information, and information management education and training for
all employees. In addition, we take measures to prevent cyberat-
tacks and information leaks, engaging in ongoing inspections of
group systems to detect and respond to aging systems and vulner-
abilities as early as possible.

6. Human rights risk involves expanding factors demanding

greater attention.

Summary
Any violation of human rights will bring social criticism or boycotts,
whether the violation occurs within our group or within the business
chain related to our business, including contractors, suppliers, and
business partners.

Changes and Outlook
As we respond to the shrinking labor force in Japan and expand our
businesses overseas, our base of human resources becomes more
diverse, and we believe in the need to address this risk from mul-
tiple perspectives.

Response
The ANA Group established a human rights due diligence mecha-
nism under the ANA Group Policy on Human Rights and reflecting
the procedures detailed in the United Nations Guiding Principles on
Business and Human Rights. We strive to manage this risk appro-
priately by conducting human rights risk assessments across our
supply chain. When necessary, we confirm and investigate human
rights risks with external parties directly. Within the ANA Group, we
conduct employee education on human rights and perform periodic
monitoring at management-level meetings.

7. The risk of severe natural disasters is increasing.
Summary
Air transportation has the advantage of being relatively more resilient
to natural disasters compared to most transportation systems, as
this means of travel connects points by air. Even if certain airports
fail to function, alternative flights can be provided using nearby
airports. However, the ANA Group business is based and concen-
trated in the Tokyo metropolitan area. Therefore, major restrictions
or disruptions to ANA Group flight operations could occur if the
Haneda or Narita airports are impacted by a natural disaster.

Response
We formulated a business continuity plan (BCP) and regularly review
the plan to ensure we restore operational functions quickly and fulfill
our mission as a public transportation service in the event of a
large-scale natural disaster, such as an earthquake directly under
the Tokyo metropolitan area. We have backup systems in place for
the various core functions essential to our flight operations. These
systems include satellite phones, emergency provisions, employee
safety confirmation systems, etc. In addition, we conduct regular
disaster drills in cooperation with related parties, including airport
companies, etc.

8. The ANA Group business is affected significantly by

market fluctuations, including foreign exchange rates,
crude oil prices, and interest rates.

Summary
a. Foreign exchange rates
Since the aircraft used by the ANA Group are manufactured by
overseas manufacturers, a significant depreciation of the yen will
increase the cost of aircraft procurement. Aircraft fuel, which
accounts for a major portion of our operating expenses, relies on
the import of crude oil, which is used as a raw material. Here as
well, operating expenses will increase if the yen depreciates signifi-
cantly. A weakening of the yen boosts yen-equivalent revenues
earned in foreign currencies overseas by the ANA Group. However,
the group has more foreign currency-denominated expenses than
foreign currency-denominated revenues, and the effect does not
offset the entire increase in expenses.

The group also takes measures to mitigate the impact of

exchange rate fluctuations through hedging transactions, etc. And
while these measures may mitigate or equalize the impact, they do
not completely eliminate the impact. Nor can these measures be
expected to be effective in controlling costs in all cases.

b. Crude oil prices
The price of jet fuel is linked to the price of crude oil. A sharp rise in
crude oil prices inevitably leads to an increase in aircraft fuel costs.
In certain of our businesses, the ANA Group adopts measures that
include assessing and collecting fuel surcharges based on fuel
prices. However, these revenues do not always offset the entire
increase in fuel costs.

The group also takes measures to mitigate the impact of crude

oil prices through hedging transactions, etc. And while these
measures may mitigate or equalize the impact, they do not com-
pletely eliminate the impact. Nor can these measures be expected
to be effective in controlling costs in all cases.

Changes and Outlook
Climate change (global warming) is said to lead to more frequent
and severe natural disasters, and we believe this risk will be one of
several increasingly important risks to address in the future.

c. Interest rates
The ANA Group business operations leverage aircraft financing and
other external funds. A significant rise in interest rates could affect
the group in the form of increased financing costs.

Changes and Outlook
Although market fluctuations are always a possibility, we believe the
potential of this risk has increased recently in light of growing
uncertainties regarding international and economic conditions.

Response
We take measures to reduce, mitigate, and equalize risks through
the use of hedging transactions, etc. As a group, we strive to
enhance resilience to market fluctuations. To this end, we engage
in more fundamental measures that include increasing foreign
currency-denominated revenues to build a revenue structure that is
resilient to the effects of exchange rates, replacing our fleet with
new aircraft having superior fuel efficiency, diversifying our business
portfolio to develop businesses less susceptible to market fluctua-
tions, and procuring funds under appropriate financial discipline.

9. Investments designed to strengthen competitiveness

and achieve new growth also entail risks.

Summary
The ANA Group considers and executes investments to achieve
growth for the future. However, these investments also entail risks.
Our Air Transportation Business introduces new aircraft to
maintain and improve competitiveness against other companies, as
well as to reduce greenhouse gas emissions. However, these
investments may not be as effective as expected in the event of
prolonged and diverse effects related to COVID-19, the rapid and
dramatic development of technologies, associated changes in social
behavior, or the fragmentation of global economic activities due to
political circumstances.

In addition, we strive to increase the risk tolerance of the group
through the consideration and execution of investments in related
businesses that we expect to have synergies with the Air
Transportation Business and similar businesses. These businesses
may utilize expertise from the Air Transportation Business, namely,
regional revitalization businesses, various air mobility businesses,
Metaverse avatar businesses, ANA Economic Zone businesses, etc.
While we expect these investments to be highly impactful when they
produce the expected results, these investments may not produce
the expected results in all cases.

Changes and Outlook
We continue to believe risk management related to investments is
important.

Response
When considering and executing investments, we strive to manage
risk appropriately, not only through discussions and deliberations at
board of directors’ meetings and other management-level meetings
but also through our investment management committee, which
oversees investments for the group. In this way, we ensure a
hierarchical and multilayered management system that incorporates
pre-investment evaluation and post-investment withdrawal
standards.

10. A declining population may cause markets to contract

or make it more difficult to secure a workforce.

Summary
The most significant business foundation of the ANA Group exists in
Japan. But as Japan’s population continues to decline, the size of
this market may contract in the future.
Population declines may also have an impact on the ability to
secure the labor force necessary for ANA Group business opera-
tions. In this event, unit labor costs may increase or business
operations may be limited due to labor shortages.

Changes and Outlook
We believe this risk has a high probability of emerging in the future.

Response
We take into account and reflect assumptions of social change
(declining populations, etc.) when forming corporate strategies. We
also strive to revitalize the market as a whole by utilizing our LCC
brand. Over the medium to long term, we will continue to expand
our international business, which addresses a market likely to grow
over the medium to long term.

To secure a sufficient workforce, we will improve our ability to
compete in recruitment via proactive investments in people. These
investments will include allocating and expanding education and
training opportunities appropriately. At the same time, we pursue
mechanization, labor savings, and unattended operations, which we
understand may not represent a source of differentiation from other
companies.

11. Expansion of high-speed rail networks may intensify
competition between air and land transportation.

Summary
Further expansion of the high-speed rail network in Japan is sched-
uled in the future, and competition with the shinkansen bullet train
and other railways may become more intense. The extension of
bullet train lines and the acceleration of existing lines may impact
the ANA Group’s domestic operations. This impact could include a
decline in market share or a drop in unit price due to intensified
price competition.

Changes and Outlook
We believe this risk is likely to emerge over the medium to
long term.

Response
We take into account and reflect assumptions of changes in the
competitive environment, such as an extension of high-speed rail
networks, etc., when forming corporate strategies. We also strive to
revitalize the market as a whole by utilizing our LCC brand. Over the
medium to long term, we will continue to expand our international
business, which addresses a market likely to grow over the medium
to long term.

(3) Other Risks
a. Risks related to transportation and aviation policies
Certain key airports, such as Haneda, have already reached a
maximum number of slots for departures and arrivals. Given that the
throughput capacity is essentially up to national policy, such airports
may limit the future business development of the group. Further,
future policies could result in the reduction or recovery of slots at
these airports currently in use by the group.

b. Risks related to taxation and taxes and public dues
Our Air Transportation Business is subject to taxes and public dues
that include airport landing fees, parking fees, and navigation and
facility usage fees. These fees run in addition to fuel tax and other
taxes. Any raises to existing taxes or new taxes and public dues
could have a negative impact on the group.

130

131

Financial / Data Section

Operating Risks

c. Risks related to economic fluctuations
Medium- to long-distance air transportation is more susceptible to
economic fluctuations than regular short-distance transportation.

d. Risks related to profit structure, financial platform, and funds

procurement

The Air Transportation Business uses costly aircraft and incurs many
expenses (fuel, maintenance, etc.) linked to flight operations,
regardless of the volume of passengers and cargo carried. A
significant decline in demand could cause a major reduction in
profitability.

In addition, the ANA Group has recorded deferred tax assets.
However, these assets may be reversed in the event of a decrease
in expected future taxable income.

The group may procure funds necessary for capital investment,
etc., from financial institutions and the market. However, if the group
is constrained in its ability to procure funds due to changes in
creditworthiness or market turmoil, such events may have a nega-
tive impact on the group.

e. Risks related to business portfolio
In addition to the Air Transportation Business, which accounts for a
large percentage of the ANA Group revenues and earnings, many of
the group’s other businesses, including Airline Related, Travel
Services, and Trade and Retail businesses, are related to the Air
Transportation Business. Any significant negative impact on the Air
Transportation Business could affect these other businesses
materially.

f. Risks related to lawsuits
Lawsuits filed in Japan or overseas related to the ANA Group
business activities could have a negative impact on the group.

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).

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 300 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
2023, 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.

132

133

Financial / Data Section

Consolidated Financial Statements

Consolidated Balance Sheet

ANA HOLDINGS INC. and its consolidated subsidiaries
As of March 31, 2023

As of March 31

ASSETS

Current assets:

Cash and deposits

Marketable securities

Notes and accounts receivable

Accounts receivable from and advances to unconsolidated subsidiaries and affiliates

Lease receivables and investments in leases

Inventories

Prepaid expenses and other

Allowance for doubtful accounts

Total current assets

Property and equipment:

Land

Buildings and structures

Aircraft

Machinery and equipment

Vehicles

Furniture and fixtures

Lease assets

Construction in progress

Total

Accumulated depreciation

Net property and equipment

Investments and other assets:

Investment securities

Investments in and advances to unconsolidated subsidiaries and affiliates

Lease and guaranty deposits

Deferred tax assets

Goodwill

Intangible assets

Other assets

Total investments and other assets

TOTAL

Yen (Millions)

2023

2022

U.S. dollars
(Thousands)
2023

¥ 92,170

¥ 100,070

$ 690,256

117,680

167,303

1,225

136,832

126,273

3,322

881,300

1,252,924

9,173

393,545

256,023

2,947,240

53,198

6,910

51,370

25,174

2,908

37,287

398,397

51,748

384,707

883,401

687,889

6,615,749

1,398,068

1,513,206

10,470,066

161,129

157,395

1,206,687

206

1,537

51,992

1,498

1,550

53,480

1,542

11,510

389,365

1,612,932

1,727,129

12,079,173

Yen (Millions)

2023

2022

U.S. dollars
(Thousands)
2023

¥ 603,686

¥ 452,679

$ 4,520,976

580,037

186,052

2,741

14,724

44,655

498,310

149,437

3,787

17,628

44,074

119,183

128,251

(258)

(245)

4,343,870

1,393,334

20,527

110,267

334,419

892,555

(1,932)

As of March 31

LIABILITIES AND EQUITY

Current liabilities:

Short-term loans

Current portion of long-term debt

Accounts payable

Accounts payable to unconsolidated subsidiaries and affiliates

Contract liabilities

Accrued expenses

Income taxes payable

Other current liabilities

1,550,820

1,293,921

11,614,019

Total current liabilities

44,045

44,385

329,850

257,665

260,000

1,929,641

1,781,646

1,783,736

13,342,664

99,411

33,137

60,748

9,849

99,234

33,353

60,933

10,612

744,484

248,161

454,938

73,758

186,967

176,446

1,400,187

2,473,468

2,468,699

18,523,687

(1,202,156)

(1,118,362)

(9,002,890)

1,271,312

1,350,337

9,520,796

122,820

113,968

31,667

16,362

31,632

15,003

919,793

237,152

122,534

263,303

273,452

1,971,864

18,115

69,705

22,620

20,230

73,050

46,840

135,662

522,017

169,400

544,592

574,175

4,078,424

¥3,366,724

¥3,218,433

$25,213,240

Long-term liabilities:

Long-term debt

Liability for retirement benefits

Deferred tax liabilities

Asset retirement obligations

Other long-term liabilities

Total long-term liabilities

Contingent liabilities

Equity:

Common stock:

Authorized – 1,020,000,000 shares;

Issued

– 484,293,561 shares in 2023 and 484,293,561 shares in 2022

Capital surplus

Retained earnings (Accumulated deficit)

Treasury stock – 13,961,988 shares in 2023 and 13,956,694 shares in 2022

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

467,601

407,328

(21,126)

(59,365)

36,824

42,496

2,481

(13,820)

862,419

7,972

870,391

467,601

407,328

(113,228)

(59,350)

32,311

72,167

3,688

(13,268)

797,249

6,166

803,415

3,501,842

3,050,460

(158,211)

(444,581)

275,773

318,250

18,580

(103,497)

6,458,616

59,701

6,518,317

¥3,366,724

¥3,218,433

$25,213,240

134

135

Financial / Data Section

Consolidated Statement of Comprehensive Income

ANA HOLDINGS INC. and its consolidated subsidiaries
Year Ended March 31, 2023

Year Ended March 31
Net income (loss)
Other comprehensive income (loss):
Unrealized gain on securities
Deferred (loss) gain on derivatives under hedge accounting
Foreign currency translation adjustments
Defined retirement benefit plans
Share of other comprehensive income in affiliates
Total other comprehensive (loss) income

Comprehensive income (loss)

Total comprehensive income (loss) attributable to:
Owners of the parent
Non-controlling interests

Yen (Millions)

2023
¥ 90,098

2022

¥(142,239)

4,466
(29,641)
(1,139)
(554)
6
(26,862)
¥ 63,236

(6,104)
50,438
1,142
2,954
45
48,475
¥ (93,764)

¥ 62,560
676

¥ (95,267)
1,503

U.S. dollars
(Thousands)
2023

$ 674,739

33,445
(221,980)
(8,529)
(4,148)
44
(201,168)
$ 473,571

$ 468,508
5,062

Consolidated Statement of Income

ANA HOLDINGS INC. and its consolidated subsidiaries
Year Ended March 31, 2023

Year Ended March 31
Operating revenues
Cost of sales
Gross income (loss)
Selling, general and administrative expenses
Operating income (loss)
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
Grounded aircraft expense
Gain on reversal of foreign currency translation adjustments

Impairment loss

Loss on cancellation of contracts
Other, net

Other income (expenses), net
Income (loss) before income taxes

Income taxes:
Current
Deferred

Total income taxes

Net income (loss)
Net income attributable to non-controlling interests
Net income (loss) attributable to owners of the parent

Year Ended March 31

Per share of common stock:
Basic net income (loss)
After adjusting for diluted shares net income per share
Cash dividends applicable to the year

Yen (Millions)

2023
¥1,707,484
1,403,567
303,917
183,887
120,030

2022
¥1,020,324
1,049,414
(29,090)
144,037
(173,127)

U.S. dollars
(Thousands)
2023
$12,787,268
10,511,248
2,276,020
1,377,121
898,899

838
1,092
801
2,306
7,854
1,060
(24,845)
–
(85)
(3,233)
(4,638)
1,987
–
–
11,175
(5,688)
114,342

297
988
–
2,540
4,256
653
(25,343)
(2,031)
(677)
(7,974)
(12,697)
–
(9,357)
(4,055)
51,153
(2,247)
(175,374)

6,275
8,177
5,998
17,269
58,818
7,938
(186,063)
–
(636)
(24,211)
(34,733)
14,880
–
–
83,689
(42,597)
856,301

4,578
19,666
24,244
90,098
621
¥ 89,477

2,682
(35,817)
(33,135)
(142,239)
1,389
¥ (143,628)

34,284
147,277
181,562
674,739
4,650
$ 670,089

Yen

2023

2022

U.S. dollars
2023

¥190.24
170.16
–

¥(305.37)
–
–

$1.42
1.27
–

136

137

Financial / Data Section

Consolidated Statement of Changes in Equity

ANA HOLDINGS INC. and its consolidated subsidiaries
Year Ended March 31, 2023

Thousands

Number of
shares of
common stock
outstanding

Common
stock

Capital
surplus

Retained
earnings
(Accumulated
deficit)

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

Total

Non-
controlling
interests

Total equity

Yen (Millions)

Accumulated other comprehensive income

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

467,601

407,329

(114,656)
30,445

(59,335)

(114,656)
846,040

38,468

21,652

2,666

(16,249)

46,537

5,087

Balance at March 31, 2021
C umulative effects of changes in

accounting policies

Restated balance

Issuance of new shares

N et loss attributable to owners of

the parent

Purchase of treasury stock
Disposal of treasury stock
Changes in scope of consolidation
Changes in scope of equity method

Net changes in the year

Total changes during the fiscal year

(6)

(1)

–

Balance at March 31, 2022

470,336

467,601

407,328

N et income attributable to owners of

the parent

Purchase of treasury stock
Disposal of treasury stock
Changes in scope of consolidation
Changes in scope of equity method

Net changes in the year

(5)

(0)

(143,628)

(45)

(143,673)

(113,228)

89,477

2,625

(16)
1

(143,628)
(16)
0
(45)

(15)

(143,689)

(6,157)

(59,350)

702,351

32,311

50,515

72,167

1,022

3,688

2,981

(13,268)

48,361

94,898

1,079

6,166

(15)
0

89,477
(15)
0

2,625

4,513

(29,671)

(1,207)

(552)

(26,917)

1,806

(114,656)
897,664
–

(143,628)
(16)
0
(45)
–

49,440

(94,249)

803,415

89,477
(15)
0
–
2,625

(25,111)

66,976

Total changes during the fiscal year

(5)

–

(0)

92,102

(15)

92,087

Balance at March 31, 2023

470,331

¥467,601

¥407,328

¥ (21,126)

¥(59,365)

¥ 794,438

¥36,824

¥ 42,496

¥ 2,481

¥(13,820)

¥ 67,981

¥7,972

¥ 870,391

Thousands

Number of
shares of
common stock
outstanding

Common
stock

Capital
surplus

Retained
earnings
(Accumulated
deficit)

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

Total

Non-
controlling
interests

Total equity

U.S. dollars (Thousands)

Accumulated other comprehensive income

Consolidated Statement of Cash Flows

ANA HOLDINGS INC. and its consolidated subsidiaries
Year Ended March 31, 2023

Year Ended March 31

Cash flows from operating activities:

Income (loss) before income taxes

Adjustments for:

Depreciation and amortization

Impairment loss

Amortization of goodwill

Gain on disposal and sales of property and equipment

Loss on cancellation of contracts

Loss (gain) on sales and valuation of investment securities

Reversal of foreign currency translation of investment securities

Increase in allowance for doubtful accounts

Increase in liability for retirement benefits

Interest and dividend income

Interest expenses

Subsidies for employment adjustment

Foreign exchange gain

Increase in notes and accounts receivable

Decrease in other current assets

Increase in notes and accounts payable

Increase in contract liabilities

Other, net

Subtotal

Interest and dividends received

Interest paid

Proceeds from subsidy income

Income taxes paid

Balance at March 31, 2022

470,336

$3,501,842

$3,050,460

$(847,959)

$(444,469)

$5,259,874

$241,975

$ 540,455

$27,619

$ (99,363)

$ 710,686

$46,176

$6,016,737

Net cash provided by (used in) operating activities

N et income attributable to owners of

the parent

Purchase of treasury stock
Disposal of treasury stock
Changes in scope of consolidation
Changes in scope of equity method

Net changes in the year

(5)

(0)

670,089

670,089
(112)

(112)

19,658

Total changes during the fiscal year

(5)

–

(0)

689,747

(112)

689,633

33,797

(222,204)

(9,039)

(4,133)

(201,580)

13,525

670,089
(112)
0
–
19,658

(188,055)

501,578

Balance at March 31, 2023

470,331

$3,501,842

$3,050,460

$(158,211)

$(444,581)

$5,949,509

$275,773

$ 318,250

$18,580

$(103,497)

$ 509,106

$59,701

$6,518,317

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

Yen (Millions)

2023

2022

U.S. dollars
(Thousands)
2023

¥ 114,342

¥(175,374)

$ 856,301

148,270

157,505

1,110,387

–

2,115

(6,123)

–

841

(1,987)

506

2,906

(1,930)

24,845

(5,043)

(2,348)

(36,523)

5,758

35,612

137,522

50,230

468,993

2,202

(24,990)

7,300

(3,683)

449,822

(861,080)

735,354

(154,321)

152,739

(93,450)

42,717

(23,442)

(674)

277

–

(2,146)

9,357

2,116

(15,637)

4,055

(2,941)

–

770

664

(1,285)

25,343

(23,955)

(3,404)

(44,964)

20,687

2,473

15,445

(43,432)

(72,577)

1,682

(26,081)

26,046

(5,483)

(76,413)

(655,500)

635,713

(253,889)

539,230

(120,591)

87,055

(12,773)

(2,975)

12,806

1,670

(727)

–

15,839

(45,854)

–

6,298

(14,880)

3,789

21,762

(14,453)

186,063

(37,766)

(17,584)

(273,519)

43,121

266,696

1,029,895

376,170

3,512,266

16,490

(187,148)

54,669

(27,581)

3,368,696

(6,448,588)

5,507,032

(1,155,702)

1,143,855

(699,842)

319,905

(175,556)

(5,047)

2,074

–

(16,071)

Net cash (used in) provided by investing activities

(204,026)

230,019

(1,527,941)

Cash flows from financing activities:

Decrease in short-term loans, net

Repayment of long-term loans

Proceeds from issuance of bonds

Redemption of bonds

Repayment of finance lease obligations

Proceeds from share issuance to non-controlling shareholders

Net increase of treasury stock

Other, net

Net cash (used in) provided by financing activities

Effect of exchange rate changes on cash and cash equivalents

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of year

(7,900)

(62,775)

–

(70,000)

(3,764)

2,000

(15)

(455)

(142,909)

2,527

105,414

621,037

–

(72,702)

169,799

–

(3,011)

–

(16)

(424)

93,646

3,626

250,878

370,322

Net decrease resulting from changes in scope of consolidation

–

(163)

(59,162)

(470,119)

–

(524,226)

(28,188)

14,977

(112)

(3,407)

(1,070,238)

18,924

789,440

4,650,917

–

Cash and cash equivalents at end of year

¥ 726,451

¥ 621,037

$ 5,440,357

138

139

Financial / Data Section

ANA-Operated International Routes

Does not include routes not in service
Compilation by ANA HOLDINGS INC. (As of August 1, 2023)

Haneda

Narita

Vancouver

Shenzhen

Hanoi

Honolulu

Seattle

San Francisco

Los Angeles

Chicago

New York

Washington, D.C.

Houston

Mexico City

London

Paris

Brussels

Frankfurt

Munich

Seoul

Dalian

Beijing

Qingdao
Shanghai

Guangzhou

Hangzhou

Hong Kong

Delhi

Mumbai

Osaka route

Osaka (Kansai)

Shanghai

Bangkok

Manila

Ho Chi Minh City

Kuala Lumpur

Taipei

Singapore

Jakarta

Sydney

Haneda routes

Narita routes

Haneda / Narita routes

Peach Aviation-Operated Routes

Niigata

Nagoya (Chubu)

Sapporo (New Chitose)

Memanbetsu
Kushiro

Sendai

Osaka (Kansai)

Oita

Tokyo (Narita)

Tokyo (Haneda)

Kagoshima

Okinawa (Naha)

Fukuoka

Seoul (Incheon)

Miyazaki

Nagasaki

Shanghai

Taipei (Taoyuan)

Hong Kong

Ishigaki

Kaohsiung

Amami Oshima

Bangkok

140

141

Financial / Data Section Market Data

Environmental and Social Data

For further information, Fact Book 2023 can be downloaded from

WEB

the ANA Group corporate website in PDF format.

https://www.ana.co.jp/group/en/investors/irdata/annual/

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

2,000

1,000

5,948

1,823
1,717
1,315

2018

2019

2020

2021

2022

583
381
126

(CY)

(Thousands)

32,000

24,000

16,000

8,000

8,522

4,254

CO2 Emissions

(10,000 tons)
2,000

1,500

1,000

500

Environmental

Fuel-Efficient Aircraft (No. / Ratio)

1,179.6

237.7

6.6

935.4

(Aircraft)

240

180

120

194

77.0

(%)

100

(FY)

2018

2019

2020

2021

2022

(FY)

2018

2019

2020

2021

2022

(FY)

2018

2019

2020

2021

2022

(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), 2023

Source: Japan National Tourism Organization (JNTO), 2023

* Fiscal 2018: Scope 3, categories 2–4, 6, and 7 calculated / Fiscal 2019–: Scope 3, all categories calculated

* ANA Group aircraft (jets)
* 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

Number of Employees Hired Overseas (ANA)

Ratio of Managers Hired Mid-Career / Ratio of Non-Japanese Managers* (ANA)

Domestic Passenger Market

Social

Number of Passengers
(Millions)

100

LCC Share
(%)

13.9

(FY)

(Millions)
80,000

60,000

40,000

20,000

(Thousands)
60,000

45,000

49,901

34,534

30,000

32,201

15,000

(People)

2,000

1,500

1,000

500

1,399

(%)

12.0

9.0

6.0

3.0

9.6

5.0

2018

2019

2020

2021

2022

(FY)

2019

2020

2021

2022

2023

(As of March 31
of each year)

2019

2020

2021

2022

2023

(As of March 31
of each year)

2018

2019

2020

2021

2022

(Left)

Full Service Carriers

LCC

(Right)

LCC Share

(Left)

ASK

RPK

(Right)

Number of Passengers

Ratio of Managers Hired Mid-Career

Ratio of Non-Japanese Managers

Source: Ministry of Land, Infrastructure, Transport and Tourism, fiscal 2022

International Cargo Market

* Ratio of non-Japanese managers is calculated excluding TC1 (Americas region) as defined by the International

Air Transport Association (IATA).

Global Freight Ton Carried by Region

ANA International Cargo Operations: ATK and RTK

Ratio of Female Managers / Ratio of Female Directors (ANA)

Ratio of Employees with Disabilities (ANA)

RTK
(Billion Tons)
1,200

900

600

300

815

233
227
205

87
43
17

2018

2019

2020

2021

2022

400

300

200

100

(CY)

(Millions)

8,000

6,000

4,000

2,000

北米

中東

6,605

ラテン・アメリカ

4,147

欧州

アジア・太平洋

アフリカ

2018

2019

2020

2021

2022

(FY)

(Left)

Total

(Right)

: Asia-Pacific

: North America

: Europe

ATK

RTK : North America

: Europe

: China

: Middle East

: Latin America

: Africa

: Asia / Oceania

: Others

Source: International Air Transport Association (IATA), 2023

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).

(%)

19.3

16.3

3.0

2.0

1.0

2.72

2.3

2019

2020

2021

2022

2023

(As of April 1
of each year)

2019

2020

2021

2022

2023

(As of June 1
of each year)

Ratio of Female Managers

Ratio of Female Directors

Ratio of Employees with Disabilities

Legally Mandated Ratio

142

143

Financial / Data Section

ESG-Related Data

The following data is the environmental results related to the ANA Group. (Aggregate figures for fiscal 2022 are preliminary)

From fiscal 2019, we have also added the results of Peach Aviation.

Climate Change Countermeasures (E)

(FY)

Carbon dioxide (CO2) emissions*

Unit

2018

2019

2020

2021

2022

Total (Aircraft, ground equipment and vehicles)

10,000 tons

Aircraft

Passenger

Cargo

Ground equipment and vehicles

A*9

Total (Scope 1, 2, and 3)

Scope 1

Scope 2

Scope 3

[Breakdown by Category]*4

1 Purchased goods and services

2 Capital goods

3 Fuel- and energy-related activities (not included in Scope 1 or 2)

4 Upstream transportation and distribution

5 Waste generated in operations

6 Business travel

7 Employee commuting

11 Use of sold products

13 Downstream leased assets

Aircraft CO2 emissions per RTK

Total Sustainable Aviation Fuel (SAF) emissions

Total energy consumption

Total

Aircraft energy

Ground energy (non-aircraft operations)

Ozone depletion (ANA only)

Fluorocarbon

Aircraft

Ground (non-aircraft operations)

Halon Aircraft

B*9

Fuel-efficient aircraft (Fiscal year-end)*8

Number of aircraft ANA Group (jet aircraft)

Ratio

10,000 tons

1,000 tons

kg-CO2

1,000 tons

Crude oil equivalent:
10,000 kl

Aircraft

1,156.0

1,142.8
1,098.0
44.9

13.2

1,306.3

1,147.0

8.9

150.4*3

—

926.4

572.6

1.4

—

1.4

2.0

—

0.97

—

446

439

6.4

9.4

—

28.8

183

65.3

1,245.8

1,233.2
1,196.8
37.4

12.6

1,682.2

1,237.3

8.4

436.4*2

986.6

788.6

1,664.1

1.7

30.8

1.6

9.4

881.7

1.01

—

480

474

6.3

2.7

—

31.7

199

70.3

548.0

538.7
470.9
67.8

9.3

723.3

541.4

7.0

174.9

624.9

361.3

734.2

0.6

17.5

0.3

9.9

0.0

1.21

—

212

207

4.8

2.9

254*7

20.5

195

72.5

776.0

766.9
678.0
89.0

9.1

976.0

769.5

6.6

199.9

548.8

327.2

941.9

932.5
846.8
85.7

9.4

1,179.6

935.4

6.6

237.7

753.0

250.9

1,038.1

1,259.7

1.1

17.3

2.3

8.9

0.0

55.6

1.09

4.03*6

300

295

4.7

0.0

169

12.8

188

74.6

0.7

32.2

4.0

8.5

0.0

67.6

1.00

6.32*6

364

359

4.9

0.0

12.8

194

77.0

*1 We have not yet reflected the impact of Sustainable Aviation Fuel (SAF) on CO2 emissions from fiscal 2018 to fiscal 2020

*2 All categories under Scope 3 have been calculated beginning in fiscal 2019

*3 Scope 3, categories 2-4, 6, and 7 for fiscal 2018 were calculated

*4 Scope 3, categories 8, 9, 10, 12, 14, and 15 are not applicable

*5 Not applicable
*6 Direct CO2 emissions from the combustion of the SAF which ANA purchased in fiscal 2021 are not included in the Scope1, 2 and 3. SAF is made from animal fat and has an approximate 90%

CO2 reduction compared to the life cycle of conventional aviation fuel. Calculated beginning fiscal 2021

*7 Calculated beginning fiscal 2020

*8 Boeing 777, 787, 737-700, -800, Airbus A320neo, and A321neo
*9 A to B : See graphs on P.143

Resource Savings

(FY)

Waste produced

Total

General waste (Cabin waste and sewage included)

General waste (Ground waste included)

Industrial waste

Water consumption

Total

Clean water

Non-potable water

144

Unit

2018

2019

2020

2021

2022

1,000 tons

10,000 kl

34.3

28.4

2.7

3.2

69.7

61.1

8.6

22.9

15.3

2.9

4.7

68.4

60.7

7.8

12.7

7.8

1.0

3.8

35.1

30.6

4.5

16.0

4.8

2.8

8.4

31.6

27.1

4.4

26.7

15.5

1.6

9.6

41.3

35.8

5.5

Please visit our corporate website for more:

WEB

https://www.ana.co.jp/group/en/csr/data/

Human Resources Data (ANA) (S)

C*5

D*5

E*5

F*5

People
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)
Ratio of managers hired mid-career (As of March 31 of each year)
Ratio of non-Japanese managers*1 (As of March 31 of each year)
R atio of female managers (As of April 1 of each year, excluding individuals

60 years old and over)

Ratio of employees with disabilities*2 (As of June 1 of each year)
Average age of employees (As of March 31 of each year)
Years worked
Average years worked (As of March 31 of each year)
Job turnover rates
Job turnover rates of employees (FY)
Average annual salary
Gender wage gap (FY)*3
Diverse work styles
N umber 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)
Health management
Ratio of employees with healthy BMI (Male / Female, As of March 31 of each year)
Ratio of employees that smoke (Male / Female, As of March 31 of each year)
Employee obesity rate*4 (Male / Female, As of March 31 of each year)

Unit

People
People
People
%
%

%
Years

Years

People

%
%
%

2019

2020

2021

2022

2023

14,242
1,442
161
9.3
2.7

14.6

2.57
37.5

14.2

3.1

—

14,830
1,464
157
9.4
2.9

16.9

2.68
38.0

13.6

4.0

—

15,114
1,404
173
9.9
3.5

17.0

2.80
37.9

12.5

4.2

—

13,689
1,375
198
10.9
4.3

18.3

2.75
38.9

13.4

3.5

38.6

14,566
1,399
207
9.6
5.0

19.3

2.72
39.2

14.2

—

629 / 20

645 / 29

643 / 27

727 / 61

856 / 194

72.9 / 72.6
17.2 / 3.7
11.1 / 1.4

72.5 / 73.0
16.7 / 3.1
12.9 / 1.0

67.7 / 70.1
14.5 / 2.6
8.2 / 1.7

74.3 / 69.1
14.1 / 2.3
11.2 / 1.3

73.7 / 68.4
13.6 / 2.4
11.1 / 1.0

*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 The significant difference in wages between men and women is due to factors that include the higher average age of men compared to women and the higher percentage of men in flight crew

positions, where wages are relatively high.

*4 Ratio of employees with BMI of 18.5%–25.0%
*5 C to F : See graphs on P.143

Governance-Related Data (G)

E*5

* ANA only
Corporate governance
Ratio of female directors (As of April 1 of each year)
Risk management
Work-related accidents (As of March 31 of each year)

Unit

2019

2020

2021

2022

2023

11.1

111

12.5

14.6

16.3

Flight-Related Data (All Passenger Flights on ANA International and Domestic Services)

(FY)
In-service rate
On-time departure rate*6
On-time arrival rate*6

*6 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

Unit
%
%
%

Unit

%
%
%

%
%
%
%

2018

2019

2020

2021

2022

98.2
88.4
86.5

97.4
88.7
87.5

43.5
97.3
96.8

59.3
94.5
93.6

95.0
88.1
88.1

2018
105,723

2019
117,628

2020
59,862

2021
69,661

2022
91,632

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

54.6
11.7
33.7

30.1
20.8
28.8
21.3

65.6
11.2
23.2

29.1
28.3
21.9
20.7

58.65
23.99
17.36

38.30
25.27
19.62
16.82

145

Financial / Data Section

The ANA Group Profile

Corporate Data (As of March 31, 2023)

ANA HOLDINGS INC. Organization (As of July 1, 2023)

Corporate Profile

Corporate Communications and Branding

Trade Name

ANA HOLDINGS INC.

Administrator of Register of Shareholders

General Administration

Corporate Sustainability

Executive Secretariat

Date of Foundation

December 27, 1952

Head Office

Shiodome City Center, 1-5-2
Higashi-Shimbashi, Minato-ku,
Tokyo 105-7140, Japan

Sumitomo Mitsui Trust Bank, Limited
(Stock Transfer Agency Department)
1-4-1, Marunouchi, Chiyoda-ku, Tokyo

Independent Auditor

Deloitte Touche Tohmatsu LLC

Government & Industrial Affairs

Number of Employees

40,507 (Consolidated)

American Depositary

General Meeting of
Shareholders

Internal Audit Division

Board of Directors

Chairman

President & Chief Executive
Officer

Group Management
Committee

Group ESG Management
Promotion Committee

Group Corporate
Transformation Committee

Audit & Supervisory
Board Members
Audit & Supervisory
Board

Audit & Supervisory
Board Members Office

Legal & Insurance

Human Resources

Employee Relations

DEI Promotion

Group IT Management

Corporate Planning

Corporate Strategy

Airline Management

Business Strategy

New Business Development

Future Creation

New Mobility Business Creation

Finance, Accounting, Investor
Relations & Business Management

Digital Design Lab

Finance, Accounting & Investor Relations

Business Management

Procurement

Facilities Planning

Number of Subsidiaries and Affiliates (As of March 31, 2023)

Operating segment

Total of subsidiaries

of which, consolidated

of which, equity method

Total of affiliates

of which, equity method

Air Transportation
Airline Related
Travel Services
Trade and Retail
Others
Total

5
40
6
72
10
133

4
29
5
8
8
54

—
—
—
—
1
1

2
4
3
1
27
37

—
2
1
—
9
12

Major Subsidiaries (As of March 31, 2023)

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 X Inc.

Trade and Retail
ALL NIPPON AIRWAYS TRADING Co., Ltd.

25,000
50
50
100

100
100
80

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

Air transportation
Air transportation
Air transportation
Air transportation

Cargo operations
Express shipping business
Innovation and operation of IT systems

Planning and sales of travel products, and
other customer-related businesses

Trading and retailing

Receipts Ratio (ADR:ORD): 5:1
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

Paid-In Capital

¥467,601 million

Fiscal Year-End

March 31

Number of Shares of Common Stock

Authorized: 1,020,000,000 shares
Issued: 484,293,561 shares

Number of Shareholders 771,327

Stock Listing

Ticker Code

Tokyo

9202

Scope of This Report

High

S
t
a
k
e
h
o
d
e
r
s
’

p
r
i
o
r
i
t
i
e
s

Reported in
this report

Reported on the

website

Annual Report (PDF)

https://www.ana.co.jp/group/en/investors/irdata/annual/

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/

Management priorities

Fact Book 2023 can be downloaded from the Company’s corporate website in

High

Fact Book 2023

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

Email: ir@anahd.co.jp

146

147

Financial / Data Section