Consolidated Financial Results
for the year ended March 31.2017

ANA TRADING CO., LTD.

FY2016 Consolidated Earnings Summary
 Consolidated Balance Sheet(Unit: millions of yen)Previous
fiscal year

Current
fiscal year

(As of March 31, 2016)(As of March 31, 2017)46,34144,844

Cash and deposits

2,799

1,669

Notes and accounts payable - trade

Notes and accounts receivable-trade

11,672

10,782Current portion of long-term debt

Accounts receivable-other

3,896

4,013

Lease investment assets

9,937

Inventories (merchandise)

8,583

Raw materials and supplies386

437

Short-term loans receivable

4,975

6,825

Item

Item

AssetsCurrent assets

Previous
fiscal year
(As of March 31, 2016)

Current
fiscal year
(As of March 31, 2017)

26,901

23,775

13,121

11,820Liabilities
Current liabilities

492

380

Finance lease obligations

1,113

1,087

9,079

Accounts payable - other

7,702

6,779

8,272

Accrued income taxes

761

495

Accrued bonuses to employees

1,168

889

Other current liabilities

2,539

2,321

Deferred tax assets

863

516

Other current assets

3,250

3,275

Long-term liabilities13,120

11,959Allowance for doubtful accounts

△ 24

△ 29

Long-term debt

2,059

1,680

16,423

16,900Finance lease obligations

7,889

7,155

141

171

Fixed assets
Property and equipment

7,663

6,993

Accrued corporate executive officers'
retirement benefits

Buildings and structures

3,295

3,119

Net defined benefit liabilities

2,177

2,170

Machinery, equipment and vehicles

788

690

Other long-term liabilities

851

781

Tools, furniture and fixtures

783

803

2,519

2,256

40,02135,734

22,15924,218Land

Total liabilities

Construction in progress

126

21

Net assets

Other150

101

Shareholders' equity

2,530

2,717

Goodwill

913

799

Software765

1,386

Software in progress

811

491

Intangible assets

Capital stock

1,000

1,000

Retained earnings

21,15923,218

Accumulated other comprehensive income

524

1,639

Net unrealized holding gain or loss onsecurities

1,354

2,047

△ 251

60

Other intangible assets

4039

Other investment assets

6,229

7,189

Deferred gains or loss on hedging
instruments

Investments in securities

3,683

4,747

Foreign currency translation adjustments△ 68△ 80

Long-term loans receivable513

480

Remeasurements of defined benefit plans

△ 510

△ 387

Deferred tax assets

338334

Net defined benefit assets

6967

59

151

Other2,040

1,966

Allowance for doubtful accounts

△ 415

△ 407

Total net assets

22,74326,00962,76561,744

Total liabilities and net assets

62,76561,744

Total assets(Note) The amounts shown are rounded down to the nearest million yen.

Non-controlling interests

1

FY2016 Consolidated Earnings Summary
 Consolidated Statement of IncomeItem(Unit: millions of yen)Previous fiscal year

Current fiscal year

(As of April 1, 2015
to March 31, 2016)(As of April 1, 2016
to March 31, 2017)

Operating revenues

140,606

136,822

Cost of operating revenues

108,888

104,811Gross profit

31,71732,010

Selling, general and administrative expenses

26,427

27,418

5,290

4,591

Operating income
Non-operating income
Interest received

139

Dividends income

76

114

Equity in earnings of non-consolidated
subsidiaries and affiliates

5943

Gain on donation of fixed assets

136--

107

Surrender value of insurance
Other113

94

Total non-operating income

399

368

4032-83

Loss on retirement of fixed assets

3554

Other

1135

Total non-operating expenses

86205

5,603

4,755

Non-operating expenses
Interest expenses
Foreign exchange losses

Ordinary income
Extraordinary income-5Gain on transfer of benefit obligation relating toemployees' pension fund131-

Total extraordinary income

131

5-

70

Gain on sale of fixed assets

Extraordinary losses
Loss on sale of fixed assets
Loss on disposal of noncurrent assets
Loss on valuation of investment securities
Impairment losses

242-48-

52

Other

1320

Total extraordinary loss38193

Income before income taxes and noncontrolling interests

5,696

4,566

Corporate, inhabitant, and enterprise taxes

2,093

1,490

Deffered income taxes

137

145

Total income taxes

2,231

1,636

Net income

3,465

2,929

Net income attributable to non-controllinginterests
Net income attributable to owners of parent(Note) The amounts shown are rounded down to the nearest million yen.

467

3,460

2,862

2

FY2016 Consolidated Earnings Summary● This fiscal year resulted in consolidated net sales of 136,822 million yen, 97.3% compared to the previous year. Although weimplemented measures, including promoting a shift into new business domains, to respond flexibly to changes in the externalenvironment, we were impacted by decline in foreign currency revenue yen conversion amounts due to yen appreciation, achange in purchasing patterns of inbound travelers, and changes in domestic market conditions.
● For new business domains, we established a joint venture company (A&S Takashimaya Duty Free Company Limited, opened on
April 27, 2017) for operating airport-style off-airport duty-free shops as we seek to further expand duty-free shops. We alsoestablished a new merger company (ANA Digital Gate, Inc.) to expand enterprise payment settlement solutions utilizing FinTech.
These and other initiatives were part of our aggressive business investment strategy.
● As a result, consolidated ordinary income was 4,755 million yen, 84.8% compared to the previous year, and consolidated net
income was 2,862 million yen, 82.7% compared to the previous year.

 Consolidated operating results(Unit: millions of yen)

FY2016FY2015

ChangeOperating revenues

136,822

140,606▲3,784

Operating income

4,591

5,290

▲699Ordinary income

4,755

5,603▲848Net income

2,8623,460▲598

EBITDA*15,8666,324▲458*1 EBITDA = Operating income + depreciation expenses

3

Segment-specific Summary Operating revenues ratio by segment*graph does not reflect elimination of inter-company transactions

Other 1.0%
General Products & Media
Services Company

Retail Business Company

・ Cabin Products Dept.
・ General Products and Materials
Dept.
・ AD. & Media Dept.
・ MUSASHINO MORI COUNTRY CLUBCo., Ltd.
・ ANA-Kuroko Strategic Solutions
Co., Ltd.

・ Retail Marketing Dept.
・ Web Marketing & Sales Dept.
・ In-flight Sales Merchandising Dept.
・ Loyalty Innovation Dept.
・ ANA FESTA Co., Ltd.
・ ANA TRADING Duty Free Co., Ltd.
・ Fujisey Co., Ltd.
・ ANA Digital Gate, Inc.

22%
38%
13%
26%

Aerospace & Electronics
Company
・ Aircraft Dept.
・ Aviation Dept.
・ Aircraft Parts Dept.
・ The Electronics Dept.
・ ANA TRADING CORP.,U.S.A.(Machinery & Aircraft Parts Business)
・ International Cargo Service Co., Ltd. (Aircraft Operations Support Business)

Food Business Company
・ ANA Foods Co., Ltd.
・ A-Sweets House Inc.
・ ANA TRADING CORP.,U.S.A.
(Foods Business)4Segment-specific Summary Retail Business Company(Unit: million of yen)

● Although ANA TRADING Duty Free Co., Ltd. in particular wasimpacted by the decline in purchasing by Chinese customers, theimplementation of sales strategies in response to demand trends
resulted in operating revenues that were largely unchanged from theprevious year. Also, ANA FESTA Co., Ltd. airport shop operations andthe Web Marketing & Sales Business were favorable.

Operating revenues
52,942

Operating income

52,471● Looking to capture demand from the increasing number of foreign
travelers to Japan, we established a joint venture company toconduct operations of airport-style off-airport duty-free shops.

2,215

1,786

● As a result, operating revenues were 52,471 million yen, 99.1%
compared to the previous year, and operating income was 1,786
million yen, 80.6% compared to the previous year.
FY2015FY2016FY2015FY2016*elimination of inter-company transactions not included Food Business Company(Unit: million of yen)

● Despite facing reduced deliveries due to the impact of poor weather
at production sites, the Fresh Food Business succeeded in securing
stable supplies from contract plantations to record favorable sales.
Structural reforms in the Sweets Business resulted in increased
income.

Operating revenues

37,072●On the other hand, the Export Business and Processed Food Businessrecorded lower revenues and sales due to the impact of declining
demand.

Operating income

35,772

1,372

1,322

FY2015FY2016●As a result, operating revenues were 35,772 million yen, 96.4%
compared to the previous year, and operating income was 1,322
million yen, 96.3% compared to the previous year.
FY2015FY2016*elimination of inter-company transactions not included

5Segment-specific Summary
 Aerospace & Electronics Company● The aircraft and aviation related business recorded higher revenues
and income from sales of parts from the purchasing of retired
aircraft. Also, we worked to secure income engaging in the chilledcontainer and equipment business and the aircraft and aviation
related consultant business.

● The Electronics Business recorded lower revenues and income.
Although we worked to strengthen relations with existing customers
and develop new customers, the business was impacted by changes
in the external environment, including a decline in foreign currency
revenue yen conversion amounts due to yen appreciation andbusiness contraction by existing customers.
● As a result, operating revenues were 18,515 million yen, 89.6%
compared to the previous year, and operating income was 1,207
million yen, 99.6% compared to the previous year.

(Unit: million of yen)

Operating revenues

20,644FY2015

Operating income

18,515FY2016

1,211

1,207

FY2015FY2016*elimination of inter-company transactions not included General Products & Media Services Company● The AD & Media Business recorded favorable results for ANA digitaladvertising and the Cabin Products Business recorded higher sales ofin-flight consumables thanks to increased passenger numbers due tothe expansion of our air transportation business domain.
● Amid declining demand for printed paper, the General Products &Materials Business focused on sales of functional paper and othervalue-added products and sales of treated products to dining industry
customers.

(Unit: million of yen)

Operating revenues

31,04031,085● As a result, operating revenues were 31,085 million yen, 100.1%
compared to the previous year, and operating income was 989
million yen, 100.7% compared to the previous year.
FY2015

Operating income

FY2016982989FY2015FY2016*elimination of inter-company transactions not included6

Financial Highlights
 Major financial figures(Unit: million of yen)

FY2012FY2013

FY2014FY2015FY2016

101,254

110,675

126,767

140,606

136,822

Ordinary income

3,150

3,475

4,161

5,603

4,755

Net sales

1,589

2,019

2,989

3,460

2,862

Total assets

52,53854,89863,28862,76561,744

Net assets

16,58418,30923,222

22,74326,009

31.5

33.3

36.6

36.2

42.1

Operating revenues

Equity ratio (%)

 Transitions in operating revenues and Net income(Operating revenues)(Unit: million of yen)

Operating
売上高
revenues

160,000

当期純利益
Net income

140,000(Operating income)(Unit: million of yen)

4,000
140,606

136,822

126,767

120,000
101,2543,460

110,675
2,989

100,000

 Transitions in total assets and Net assets

3,500

Total assets
総資産70,00060,0003,000(Unit: million of yen)

Net assets
純資産63,28862,76561,74454,89852,53850,0002,862

2,500
40,00080,000

2,000
2,019

60,000

1,500

1,589
40,0001,000

20,000500

00
FY2012FY2013
FY2014FY2015FY2016
2012年度
2013年度
2014年度
2015年度
2016年度

30,00020,00016,58418,309

23,222

22,74326,00910,0000
2012年度FY2012

2013年度FY20132014年度FY20142015年度FY20152016年度FY2016

7