All Nippon Airways Trading Co., Ltd.
Financial Statements 20201

Non-consolidated Balance Sheet
All Nippon Airways Trading Co., Ltd.
As of March 31, 2020
Millions of yen
ASSETS

2020

Current assets:
Cash and deposits (Note 9)¥784

Notes and accounts receivable - trade (Notes 3, 9 and 10)

9,136

Lease investment assets (Note 10)

7,304

Inventories

3,708

Short-term loans receivable (Notes 3, 9 and 10)

6,864

Other current assets (Notes 3 and 10)

2,603

Allowance for doubtful accounts(141)
30,261

Property, plant and equipment (Note 4):
Land

15

Buildings and leasehold improvements

78

Vehicles, tools, furniture and fixtures

33

Construction in progress

329

Rental assets

428
885

Intangible assets

1,006

Investments and other assets:
Investment securities (Note 9)

3,714

Investment securities of related parties

7,127

Long-term loans receivable (Notes 3 and 10)

1,216

Lease and guarantee deposits

22

Deffered tax assets

72

Prepaid pension costs

272

Other assets

365

Allowance for doubtful accounts(722)
12,068

Total assets¥44,221

See notes to non-consolidated financial statements.

2

Millions of yen
LIABILITIES AND NET ASSETS

2020

Current liabilities:
Notes and accounts payable (Notes 3, 9 and 10)¥12,067

Short-term loans payable (Notes 3, 9 and 10)

6,828

Current portion of long-term loans payable (Note 9)260

Current portion of lease obligations

1,081

Advances received (Notes 10)766

Unearned revenue

395

Accrued operating expenses

63

Accrued income taxes

87

Other current liabilities

616
22,167Long-term liabilities:
Long-term debt, less current portion (Note 3, 9 and 10)780

Lease obligations, less current portion

4,164

Accrued employees' retirement benefits967

Long-term deposits payable

350

Provision for directors' retirement benefits

111

Long-term unearned received

0
6,374

Net assets (Notes 5 and 8)
Shareholders' equity:

13,821

Common stock:
Authorized---2,880,000 shares at March 31, 2020
Issued---654,724 shares at March 31, 2020

1,000

Retained earnings:

12,831

Legal reserve

250

Retained earnings

12,581

Accumulated other comprehensive income:

1,848

Unrealized holding gain (loss) on securities

1,848

Unrealized gain (loss) from hedging instruments

0
15,670Total liabilities and net assets¥44,221

See notes to non-consolidated financial statements.

3

Non-consolidated Statement of Income
All Nippon Airways Trading Co., Ltd.
Year ended March 31, 2020

Millions of yen
2020

Net sales (Notes 3 and 10)¥64,618

Cost of sales (Notes 3 and 10)

53,800Gross profit

10,817

Selling, general and administrative expenses

7,946

Operating income

2,871

Non-operating income (expenses) (Note 3):
Interest and dividend income

305

Foreign exchange gain (Note 6)

168

Interest expenses(11)

Other - net(35)

Ordinary income

3,297

Extraordinary gains and (losses):
Loss on valuation of investment securities

216

Loss on valuation of investment securities of related parties

73

Provision of allowance for doubtful debts

202

Provision for loss on liquidation of subsidiaries

236

Income before income taxes

2,568

Income taxes (Note 7):
Current

384

Deferred

(152)
232

Net income (Note 8)¥2,336

See notes to non-consolidated financial statements.

4Non-consolidated Statement of Changes in Net Assets
All Nippon Airways Trading Co., Ltd.
Year ended March 31, 2020
Millions of yen
Shareholders’ equity

Commonstock

Balance at April 1, 2019

¥1,000

Accumulated other comprehensive income

Earned surplus

Totalaccumulated
othercomprehensive
income¥(3)¥2,434

Total net
assetsRetained earnings¥250¥11,571¥12,821(1,326)(1,326)(1,326)

2,336

2,336

2,336

Net income
Net changes of items other thanshareholders’ equity during theyear
Total changes during the year

¥1,000

Unrealized gain
(loss) fromhedging
instruments

Legal reserve

Cash dividends paid

Balance at March 31, 2020

Unrealized
holding gain
(loss) on
securities

Total
shareholders’equity¥250¥2,438¥15,256

(590)

3

(586)

(586)

1,010

1,010

(590)

3

(586)

423

¥12,581¥13,831¥1,848¥0¥1,848¥15,680

See notes to non-consolidated financial statements.

5Notes to Non-consolidated Financial Statements
All Nippon Airways Trading Co., Ltd.
Year ended March 31, 2020

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.
In addition, the notes to non-consolidated financial statements include information which is not required underaccounting principles generally accepted in Japan. In preparing the accompanying financial statements, certain
reclassifications have been made in the financial statements issued domestically in order to present them in a form
which is more familiar to readers outside Japan.
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
2020 do not necessarily agree with the sum of the individual amounts.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(a) Foreign currency translation
In accordance with the accounting standard for foreign currency translation, foreign currency payables andreceivables at March 31, 2020 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.

(b) 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.

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

(d) 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:

6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

Structures

10 – 20 years

Vehicles6 years

Tools, furniture and fixtures

2 – 20 years

Depreciation of rental assets is calculated by straight-line method over the lease period.

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

(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) Provision for loss on liquidation of subsidiaries
The company provides reserve for loss on liquidation of subsidiaries based on the estimated amounts of possible
loss.

(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 of7

employees. 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.

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

(k) Derivatives
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 as
hedges.

(l)

Consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.

(m) Deferred tax accounting
Deferred tax assets and liabilities are recognized in the non-consolidated financial statements with respect to thedifferences between the financial reporting and tax bases of the assets and liabilities, operating losses and tax
credits carried forward. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply
to taxable income in the years in which the temporary differences are expected to be recovered or settled. (SeeNote 6).

(n) Net income per share
The computation of net income per share is based on the weighted average number of shares outstanding during
each year.

(o) Consolidated corporate-tax system
The Company has applied the consolidated corporate-tax system with ANA HOLDINGS INC. as the parent
company.

8

3.

TRANSACTIONS WITH PARENT COMPANY, SUBSIDIARIES AND AFFILIATES
Information on balances and transactions with the parent company, subsidiaries and affiliates as of March 31, 2020 andfor the year then ended was as follows:
Millions of yen
2020
Balances:
Notes and accounts receivable¥535

Short-term loans receivable

6,943

Other current assets

1,362

Long-term loans receivable971

Notes and accounts payable

561

Short-term loans payable

7,088

Long-term debt

780

Transactions:
Sales

4,065

Purchases

4,339Transactions other than operating transactions

4.

363

PROPERTY, PLANT AND EQUIPMENT
The following table sets forth the acquisition costs and related accumulated depreciation of certain property, plant andequipment at March 31, 2020:
Millions of yen
2020
Land

¥15

Buildings and leasehold improvements

168

Vehicles, tools, furniture and fixtures345

Construction in progress

329

Rental assets

941
1,800

Less accumulated depreciation

(915)
￥884

5.

NET ASSETS
In accordance with the Law, the Company provides a legal reserve, which is included in retained earnings. The Law
provides that an amount equal to at least 10% of the amounts to be disbursed as distributions of earnings be
appropriated to the legal reserve until the total of the legal reserve and the additional paid-in capital accounts equals
25% of the common stock amounts. The Law provides that neither the additional paid-in capital nor the legal reserveis available for the payment of dividends, but both may be used to reduce or eliminate a deficit by resolution ofshareholders or may be transferred to common stock by resolution of the Board of Directors. The Law also provides
that, if the total amount of the legal reserve exceeds 25% of the amount of common stock, the excess may be distributed

9

to the shareholders either as a return of capital or as dividends subject to the approval of the shareholders. Under theLaw, however, such distributions can be made at any time by resolution of the shareholders or by the Board of Directors
if certain conditions are met.

(1) Type and number of outstanding shares
Number of shares
Balance atApril 1, 2019

Increase in shares
during the year

Decrease in shares
during the year

Balance at
March 31, 2020

Issued stock:
Common stock654,724--

654,724(2) Cash dividends paid to shareholders
Date of approval

Resolution
approved byType of shares

Amount(Millions of yen)Amount per
share
(Yen)

Shareholders'
cut-off date

Effective dateMarch
31, 2019

Extraordinary
generalmeeting ofshareholders

Common stock¥1,326¥2,026March
31, 2019

June
28, 2019(3) Dividends with a shareholders' cut-off date during the current fiscal year ended March 31, 2020, but an effective
date subsequent to the current fiscal year
The company will not pay dividends.

6.

FOREIGN EXCHANGE GAIN OR LOSS
Foreign exchange gain or loss is recorded on a net basis. Net foreign exchange gain of 168 million yen was included indetermining net income for the year ended March 31, 2020.

7.

INCOME TAXESThe Company is subject to a number of taxes on income (corporation tax, inhabitants taxes and enterprise tax), which,in aggregate, resulted in a normal statutory tax rate of approximately 30.62% for the year ended March 31, 2020. The
tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and liabilities at March
31, 2020 are as follows:
Millions of yen
2020
Deferred tax assets:
Valuation loss on marketable and investment securities¥477

Accrued employees' retirement benefits and pension expense

296

Provision for doubtful receivables

254

Accrued expenses

21

Other

238
1,286

10

Valuation allowance

(622)
664

Deferred tax liabilities:
Unrealized holding gain on securities

(508)

Other

(83)
(592)

Net deferred tax liabilities

8.

(¥72)

AMOUNTS PER SHARE
Amounts per share as of and for the year ended March 31, 2020 are as follows:Yen
2020
Net income¥3,568.77

Net assets

23,949.11

11

9.

FINANCIAL INSTRUMENTS(1) Policy for financial instruments
The Company limits its fund management to short-term deposits and raises funds through borrowings from its
subsidiaries. The Company uses derivatives for the purpose of reducing risk and does not enter into derivativetransactions for speculative or trading purposes.

(2) Types of financial instruments, related risk and risk management
Notes and accounts receivable are exposed to credit risk in relation to customers. In accordance with its internal
policies for managing credit risk arising from receivables, the Company monitors the creditworthiness of its main
customers periodically and monitors due dates and outstanding balances by individual customer, making efforts to
identify and mitigate risks of bad debts from customers having financial difficulties.
Investment securities are exposed to the risk of market price fluctuations. Those securities are composed of mainly
the shares of other companies with which the Company has business relationships. The Company periodicallyreviews the fair values of such financial instruments and the financial position of the issuers, whereby making efforts
to identify and mitigate risks of impairment.
For derivatives, in order to reduce the foreign currency exchange risk arising from the receivables and payables
denominated in foreign currencies, the Company enters into forward foreign exchange contracts for specificreceivables and payables denominated in foreign currencies. There are internal policies for derivativetransactions which set forth authorization levels and maximum upper limits on transaction volumes, and theCompany enters into the derivative transactions in accordance with such policies.

(3) Estimated fair value of financial instruments
The carrying value of financial instruments on the balance sheet and estimated fair value at March 31, 2020 are
shown in the following table. The following table does not include financial instruments for which it is extremely
difficult to determine the fair value (Please refer to Note 2 below).

Millions of yen

At March 31, 2020
Carrying value

Fair value

Difference

Assets:Cash on hand and in banks

¥784

¥784

¥-

Notes and accounts receivable

8,837

8,837

-

Short-term loans receivable

6,715

6,715

-

3,438

3,438

-

¥19,774¥19,774¥-

Investment securities:
Marketable securities
Total assets

12Carrying value

Fair value

Difference

Liabilities:

Notes and accounts payable¥12,067¥12,067-

Short-term loans payable

6,828

6,828

-

Long-term debt

1,040

1,038

△1

Total liabilities¥19,934¥19,932¥△1

Notes:
1. Methods to determine the estimated fair value of financial instruments and other matters related to securities
and derivative transactions
1)

Cash on hand and in banks, Notes and accounts receivable, and Short-term loans receivable
Since these items are settled in a short period of time, their carrying value approximates fair value.

2)

Marketable securities
The fair value of stocks is based on quoted market prices.

3)

Notes and accounts payable, and Short-term loans payable
Since these items are settled in a short period of time, their carrying value approximates fair value.

4)Long-term debt
The fair value of long-term debt is based on the present value of the total of principal and interest
discounted by the interest rate to be applied to similar new borrowings. Long-term debt includes thecurrent portion of long-term debt.

2. Financial instruments for which it is extremely difficult to determine the fair value
At March 31, 2020

Millions of yen

Investment securities¥276

Investment securities of related parties¥7,127¥7,403

Because no quoted market price is available and it is extremely difficult to determine the fair value, theabove financial instruments are not included in the preceding table.

1310. RELATED PARTY TRANSACTIONSThe Company has related party transactions with ANA HOLDINGS INC., the parent company, and subsidiaries andaffiliated companies. The corresponding balances at March 31, 2020 and the amounts of these transactions for the year
then ended are summarized as follows:

Millions of yen
Related parties

Balances

ANA HOLDINGS INC.

Current portion of long-term loans payable

ANA Foods Co., Ltd.

2020
¥260

Long-term loans payable

780

Short-term loans receivable

6,715

Other current assets (Advances)

1,192

Short-term loans payable

1,900

Short-term loans receivable88

Long-term loans receivable

317

ANA FESTA Co., Ltd.

Short-term loans payable

1,276International Cargo Service Co.,Ltd.

Short-term loans payable753

ANA Trading Duty Free Co., Ltd.

Short-term loans payable

1,401

Fujisey Co., Ltd.

Short-term loans payable

1,469

Millions of yen
Related parties

Transactions

ANA HOLDINGS INC.

Borrowings¥1,170Loan of funds

7,133

ANA Foods Co., Ltd.

2020

Borrowings

1,755

Other current assets (Advances)

1,135
464

Loan of funds

5Interest income
Borrowings

1,606

ANA FESTA Co., Ltd.

Borrowings

719

International Cargo Service Co.,Ltd.

Borrowings

2,026

ANA Trading Duty Free Co., Ltd.

Borrowings

1,244

Fujisey Co., Ltd.

14

The Company has related party transactions with other subsidiaries of ANA HOLDINGS INC. The correspondingbalances at March 31, 2020 and the amounts of these transactions for the year then ended are summarized as follows:

Millions of yen
2020

Related parties

Balances

All Nippon Airways Co., Ltd.

Notes and accounts receivable¥3,109294

Other current assets (Advances)
Lease investment assets

1,557

ANA CATERING SERVICE CO.,LTD.

Lease investment assets

2,510

ANA NARITA AIRPORT SERVICES Co., Ltd.

Lease investment assets

430

Millions of yen
Related parties

Transactions

2020

All Nippon Airways Co., Ltd.

Sales of products and goods and services

ANA CATERING SERVICE CO.,LTD.

Lease transaction mainly for vehicles related to flight180

ANA NARITA AIRPORT SERVICES Co., Ltd.

Lease transaction mainly for vehicles related to flight80¥27,637

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.

11. OTHER NOTESThe Company has entered into loan commitment agreements with banks in order to secure funds for its operations
efficiently. The outstanding balance of loan commitments at March 31, 2020 is as follows:
Millions of yen
2020
Total commitment available¥6,700Less amount utilized-

Balance available¥6,70015

All Nippon Airways Trading Group(As of March 31, 2020)

Parent:・ANA HOLDINGS INC.

Subsidiaries:
・ANA Foods Co., Ltd.
・ANA Trading Corp., U.S.A.
・ANA Trading Duty Free Co., Ltd.
・ANA FESTA Co., Ltd.
・International Cargo Service Co., Ltd.
・Musashinomori Country Club Co., Ltd.
・Fujisey Co., Ltd.
・ANA Creative Operation Services Co., Ltd.
・ANA Digital Gate, Inc.
・SG RETAIL PARTNERS PTE.LTD.
Affiliates:
・panda Flight Academy Co., Ltd.
・A2 Care Co., Ltd.
・A&S Takashimaya Duty Free Co., Ltd.
・ANA X Inc.

16

Supplementary Schedules
All Nippon Airways Trading Co., Ltd.
As of March 31, 2020
1.

PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Millions of yen

Type

P
r
o
p
e
r
t
y
,

e
q
u
i
p
m p
e l
n a
t n
t
a
n
d

a
s
s
e
t
s

I
n
t
a
n
g
i
b
l
e

Account

F
o
r
C
o
m
p
a
n
y

Increaseduringthe year

Beginningbalance

Decreaseduringthe year

Depreciation
andamortization

EndingbalanceAccumulated
depreciation
andamortization

Acquisition
cost

Buildings

84

1

-

7

78

90

168

Structures

-

-

-

-

-

-

-

Vehicles

0

0

0

0

0

0

0

Tools, furnitureand fixtures

54

3

1

22

33

312

345

Land

15

-

-

-

15

-

15

Construction inprogress

0

329

-

329

-

329

Leased assets

0

-

-

0

0

1

1

153

334

1

30

456

403

860

-

-

-

-

-

363

363

Total
F
o
r

Aircraft for lease
Vehicles

106

-

-

22

84

96

180

L
e
a
s
e

Tools, furnitureand fixtures for
lease

31

344

-

32

343

53

397

Total

138

344

-

54

428

512

941

Telephonesubscription
rights

10

-

-

-

10

Software

898

375

5

302

965

Software in
progress

90

27

87

-

30

Other intangible
assets

0

0

-

0

0

999

401

92

302

1,006

F
o
r
C
o
m
p
a
n
y

Total

17

2.

ALLOWANCES
Millions of yen
Endingbalance

Beginningbalance

Increase

Decrease

Allowance for doubtful accounts

609

312

57

863

Provision for bonuses

434

266

434

266

-

236

-

236

Accured employees’ retirement benefits

596

429

58

967

Provision for director's retirement benefits

125

43

58

111

Provision for loss on liquidation of subsidiaries

18

3．SELLING, GENERAL AND ADMINISTRATIVE

Millions of yen
Account

AmountAccount

AmountSelling expenses

37

Book and newspaper expenses

3

Sales commissions

213

Insurance expenses

6

Business consignment expenses

678

Promotion expenses

75

Total variable expenses

929

Advertising expenses

104

Directors' compensations

78

Sample expenses

Employees' salaries

9

2,381

Entertainment expenses

141

Salaries for fixed-term employment

121

Conference expenses

2

Bonuses424

Rent expenses

346

Retirement payments

8

Building maintenanceexpenses10

Commutation expenses

66

Utilities expenses

11

Legal welfare expenses

484

Repair and maintenance9

Welfare expenses

133

Taxes and dues

97

Employment expenses

59

Commission fees

269

Education and training expenses

64

Research study expenses

56

Transfer allowance

57

Contributions

3

Provision for bonuses

274

Membership fees

12

Provision for director's retirement
benefits

43

Depreciation

9

Retirement benefit expenses

322

Provision of allowance for doubtful
accounts

52

Other personnel expenses

10

Amortization of intangible assets

0

Total personnel expenses

4,531Electronic device expenses

709

Transportation expenses

478

Miscellaneous expenses

7

Vehicle maintenance costs0

Total other expenses

2,485

Packing and transportation
expenses17

Total selling, general andadministrative expenses

7,946

Stationary expenses

8

Communication expenses

38

Tools, furniture and fixtures3

19