ALL NIPPON AIRWAYS TRADING CO., LTD.
Financial Statements for the year Ended March 31, 2024

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ALL NIPPON AIRWAYS TRADING CO., LTD.
Non-consolidated Balance Sheet
As of March 31, 2024
Millions of yen
ASSETSAs of Mar 31, 2024

Current assets:
Cash and deposits¥1,259Notes and accounts receivable - trade

10,007

Lease investment assets

6,180

Inventories

3,098

Short-term loans receivable

7,267

Other current assets

3,679
88872

Allowance for doubtful accounts(78)
31,414

Property, plant and equipment:
Land15

Buildings and leasehold improvements

83721

Vehicles, tools, furniture and fixtures

58

Rental assets

1990094356

Intangible assets

1,483

Investments and other assets:
Investment securities

5,531

Investment securities of related parties

7,153

Long-term loans receivable

904

Lease and guarantee deposits

16

Prepaid pension costs

264

Other assets

377

Allowance for doubtful accounts(579)
13,667

Total assets¥46,921

See notes to non-consolidated financial statements.

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Millions of yen
LIABILITIES AND NET ASSETS

As of Mar 31, 2024

Current liabilities:
Notes and accounts payable¥11,940

Short-term loans payable

6,129

Current portion of lease obligations

923

Advances received

338

Unearned revenue

843

Accrued operating expenses

683

Accrued income taxes

83

Other current liabilities

68
21,011Long-term liabilities:
Lease obligations, less current portion

2,883

Accrued employees' retirement benefits

1,057

Long-term deposits payable

350

Provision for directors' retirement benefits

135

Long-term deferred tax liability

349
4,776

Net assets
Shareholders' equity:

17,954

Common stock:
Authorized---2,880,000 shares at March 31, 2024Issued---654,724 shares at March 31, 2024

1,000Retained earnings:

16,954

Legal reserve

250

Retained earnings

16,704

Accumulated other comprehensive income:

3,179

Unrealized holding gain (loss) on securities

3,156

Unrealized gain (loss) from hedging instruments

22
21,134

Total liabilities and net assets¥46,921

See notes to non-consolidated financial statements.

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ALL NIPPON AIRWAYS TRADING CO., LTD.
Non-consolidated Statement of Income
FY2023 ended March 31, 2024

Millions of yen
FY2023 ended
Mar 31, 2024

Net sales¥47,022

Cost of sales38,055

Gross profit

8,966

Selling, general and administrative expenses

7,741

Operating income

1,224

Non-operating income (expenses):
Interest and dividend income

168

Foreign exchange income

176

Interest expense(4)

Other – net

17

Ordinary income

1,581

Income before income taxes

1,581

Income taxes :Current

442

Deferred(101)341

Net income¥1,240See notes to non-consolidated financial statements.

4Notes to Non-Consolidated Financial Statements
ALL NIPPON AIRWAYS TRADING CO., LTD.
Statements for the year Ended March 31, 2024
1.

BASIS OF PRESENTATION
The accompanying non-consolidated financial statements of All Nippon Airways Trading Co., Ltd. (the “Company”)
are prepared on the basis of accounting principles generally accepted in Japan, which are different in certain respects
as to application and disclosure requirements of International Financial Reporting Standards.
As permitted by the regulations under the Corporation Law of Japan (the “Law”), amounts less than one million yen
have been omitted. As a result, the totals shown in the accompanying non-consolidated financial statements for fiscal
2023 do not necessarily agree with the sum of the individual amounts.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(a) Marketable securities and investment securities
The accounting standard for financial instruments requires that securities be classified into three categories; trading,held-to-maturity or other securities. Under the standard, trading securities are carried at fair value and held-tomaturity securities are carried at amortized cost. Marketable securities classified as other securities are carried atfair value with changes in unrealized holding gains or losses, net of the applicable income taxes, included directlyin net assets. Non-marketable securities classified as other securities are carried at cost. Cost of securities sold isdetermined by the moving average method.

(b) Inventories
Inventories are principally stated at the lower of cost or net realizable value, cost being determined by the moving
average method.

(c) Property, plant and equipment (and depreciation)
Property, plant and equipment are stated at cost less accumulated depreciation.
Depreciation of property, plant and equipment, except for rental assets, is calculated based on estimated useful
lives by the following methods:
Buildings acquired on or after April 1, 1998 ---- Straight-line method
Facilities attached to buildings and other non-building structures acquired on or after April 1, 2016 ---- Straightline method
Others ---- Declining-balance method

The Company principally applies the following useful lives:
Buildings and leasehold improvements

3 – 60 years

Vehicles6 years

Tools, furniture and fixtures

2 – 20 years

5(d) Intangible assets and amortization
Intangible assets are amortized by the straight-line method. Cost of software purchased for internal use isamortized by the straight-line method over five years, the estimated useful life of purchased software.

(e) Leased assets
Leased assets are depreciated over the lease term using the straight-line method with the estimated disposal value
at the end of the lease term as the residual value.

(f)

Allowance for doubtful accounts
A general provision is made for doubtful receivables based on past experience. Provisions are also made against
specific receivables as and when required based on estimates of the collectability of receivables.

(g) Allowance for employee bonuses payment
The company provides reserve for employee bonuses payment based on the estimated amounts for the current
fiscal year.

(h) Accrued employees’ retirement benefits
The retirement benefit plan of the Company covers substantially all employees other than directors. Under theterms of this plan, eligible employees are entitled, upon mandatory retirement or earlier voluntary severance, tolump-sum payments or annuity payments based on their compensation at the time of leaving and years of service
with the Company. The Company has trustee employees’ pension funds to provide coverage for the part of thelump-sum benefits or annuity payments. In accordance with the accounting standard for retirement benefits,
accrued employees’ retirement benefits at the balance sheet date are provided mainly at an amount calculated
based on the retirement benefit obligation and the fair market value of the pension plan assets at the balance sheet
date, as adjusted for unrecognized net retirement benefit obligation at transition, unrecognized actuarial gains orlosses and unrecognized prior service cost. The retirement benefit obligation is attributed to each period by thestraight-line method over the estimated service years of eligible employees.
Actuarial gains and losses are amortized in the year following the year in which the gains or losses are recognizedby the straight-line method over periods which are approximately equal to the average remaining service years ofemployees. Prior service cost is being amortized as incurred by the straight-line method over periods which areapproximately equal to the average remaining service years of employees.
At the balance sheet date, the total amount of pension assets exceeds pension retirement benefit obligation which
is deducted unrecognized actuarial differences. Therefore, the company records the excess amounts of pension
assets as prepaid pension costs in investments and other assets.

(i)

Provision for directors’ retirement benefits
The Company records a reserve for retirement benefits for directors and corporate auditors based on the amountpayable at the balance sheet date based on the internal regulations.

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Revenue and expense accounting standards(j)

The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, March31, 2020), etc. effective from FY2021．Regarding the income earned from import / export of aviation-relatedmaterials and Internet shopping, etc. it recognizes revenue when (or as) it satisfies a performance obligation bytransferring promised goods or services (i.e. an asset) to a customer. An asset is transferred when (or as) thecustomer obtains control of that asset. It recognizes as revenue the amount expected to be received uponexchange of goods or services.
In addition, the Company previously recognized revenue in the gross amount of consideration received fromcustomers in some transactions but in a transaction where the Company is an agent or a consignee inconnection with the provision of a good or service to a customer, it recognizes revenue on a net basis (netamount of consideration that the Company retains after paying the supplier the consideration received from thecustomer).
Also, in supply for a fee transaction (a supply for a fee transaction is a transaction where the manufacturer, that isto say the Company supplies raw materials for a fee to the subcontractor to process the supplied materials)
supplied raw materials were previously derecognized. In such transactions, however, the Company are obliged torepurchase processed items and therefore continue to recognize the supplied raw materials. Revenue for thetransfer of supplied materials is not recognized.

(k) Other significant non-consolidated financial statement
1

Leased assets and depreciation
Finance lease transactions under which ownership is not transferred to a lessee are recognized as normal sales
transactions.

2Derivatives
The Company uses derivatives, such as forward foreign exchange contracts and interest rate swaps, to manage
its risk exposure arising from fluctuations in foreign exchange rates and interest rates. The Company does not use
derivatives for trading purposes. In principle, deferral hedge accounting is adopted for derivatives that qualify ashedges.

3Foreign currency translation
In accordance with the accounting standard for foreign currency translation, foreign currency payables andreceivables at March 31, 2024 are principally translated at the rate of exchange in effect at the balance sheet date,
except payables and receivables hedged by qualified forward foreign exchange contracts.

4The Company bases lease transactions based on installment sales contracts on the deferred payment standard.

5Group tax sharing system
The Company has applied the group tax sharing system with ANA HOLDINGS INC. as the parent company.

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3.

BALANCE SHEET(1) Accumulated depreciation of property, plant and equipment¥647(2) Credit and liabilities for related companies

4.

Current credit¥8,375Long-term credit

557

Current liabilities

6,955

INCOME TAXThe Company is subject to a number of taxes on income (corporation tax, inhabitant’s taxes and enterprise tax), which,in aggregate, resulted in a normal statutory tax rate of approximately 30.62% for the year ended March 31, 2024. The
tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and liabilities at March
31, 2024 are as follows:

Millions of yen
As of Mar 31,
2024
Deferred tax assets:
Valuation loss on marketable and investment securities¥386

Accrued employees' retirement benefits and pension expense

323

Excess allowance for employees’ bonuses

200

Provision for doubtful receivables

191

Loss carry forward

49

Other

166
1,319

Valuation allowance

(604)
714

Deferred tax liabilities:Unrealized holding gain on securities(973)

Other(90)(1,064)

Net deferred tax liabilities

(349)

85.

RELATED PARTY TRANSACTIONSThe Company has related party transactions with ANA HOLDINGS INC., the parent company, subsidiaries and affiliatedcompanies. The corresponding balances at March 31, 2024 and the amounts of these transactions for the year thenended are summarized as follows:
Millions of yen
Related parties

Balances

ANA HOLDINGS INC.

Short-term loans receivable

As of Mar 31, 2024
¥6,223341

Account Payable
ANA FOODS CO., LTD

Short-term loans payable

2,057

ANA FESTA CO., LTD.

Long-term loans receivable

478

Installment receivable

535

Short-term loans receivable

892

INTERNATIONAL CARGO SERVICE

Short-term loans payable

940

CO., LTD.
ANA TRADING DUTY FREE CO., LTD.

Short-term loans payable

FUJISEY CO., LTD.

Short-term loans payable

1,573

ALL NIPPON AIRWAYS CO.,LTD.

Notes and accounts receivable

2,742

ANA CATERING SERVICE CO.,LTD.

1,449

Lease investment assets

903

Lease investment assets

1,704

Millions of yen
FY2023 ended Mar

Related parties

Transactions

ANA HOLDINGS INC.

Borrowings¥130

Loan of funds

7,523

31, 2024

446

Account Payable
ANA FOODS CO.,LTDBorrowings

2,183

ANA FESTA CO., LTD.

Loan of funds

1,454

Lease transaction for Store equipment

576

Borrowings

978

ANA TRADING DUTY FREE CO., LTD.

Borrowings

1,439

FUJISEY CO., LTD.

Borrowings

1,437

INTERNATIONAL CARGO SERVICE CO.,
LTD.

Note:
1. Business transactions with related parties are carried out on an arm’s-length basis similar to third-party transactions.
2. Consumption taxes are not included in the amounts of these transactions.

96.

AMOUNT PER SHARE
Amounts per share as of and for the year ended March 31, 2024 are as follows:
Yen
FY2023 ended Mar
31, 2024

7.

Net income¥1,894.97

Net assets

32,279.35

SUBSEQUENT EVENTS
None.

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