※Reference information

Consolidated Balance Sheet
All Nippon Airways Trading Co., Ltd. and consolidated subsidiaries
As of March 31, 2016

(Unit: millions of yen)
2016

AssetsCurrent assets:
Cash and deposits¥ 2,799

Notes and accounts receivable-trade

11,672

Accounts receivable-other

3,896

Lease investment assets

9,937

Inventories (merchandise)

8,583

Short-term loans receivable

4,975

Advance payments-other

1,010

Consumption taxes receivable

1,130

Deferred income taxes

863

Other current assets

1,495

Allowance for doubtful accounts(24)

Total current assets

46,341

Property and equipment:
Buildings and structures

3,295

Machinery, equipment and vehicles

788

Tools, furniture and fixtures

783

Land

2,519

Leased assets

150

Construction in progress126

Net property and equipment

7,663

Intangible assets:
Software765

Goodwill

913

Software in progress

811

Other intangible assets

40

Total intangible assets

2,530

Investments and others:
Investments in securities

3,683

Lease and guarantee deposits

1,488Long-term loans receivable

513

Deferred income taxes

338

Net defined benefit assets

69

Other552

Allowance for doubtful accounts(415)

Total investments and others

6,229

Total assets¥ 62,765

1※Reference information(Unit: millions of yen)

(Unit: millions of yen)
2016

Liabilities and net assets
Current liabilities:
Notes and accounts payable-trade¥ 13,121

Current portion of long-term debt payable

492

Finance lease obligations

1,113

Accounts payable-other6,543

Consolidated taxes payable

1,159

Accrued income taxes

761

Advances received

1,150

Accrued bonuses to employees

1,168

Other current liabilities

1,389

Total current liabilities

26,901Long-term liabilities:
Long-term debt

2,059

Finance lease obligations

7,889

Net defined benefit liabilities

2,177

Accrued corporate executive officers' retirement benefits

141

Other long-term liabilities

851

Total long-term liabilities

13,120Net assets:
Shareholders' equity

22,159

Capital stock

1,000

Retained earnings

21,159

Accumulated other comprehensive income

524

Net unrealized holding gain or loss on securities

1,354

Deferred gain or loss on hedging instruments(251)

Foreign currency translation adjustments(68)

Remeasurements of defined benefit plans(510)

Non-controlling interests

59

Total net assets

22,743

Total liabilities and net assets¥ 62,765(Note) The amounts shown are rounded down to the nearest million yen.

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Consolidated Statement of Income
All Nippon Airways Trading Co., Ltd. and consolidated subsidiaries
Year ended March 31, 2016

(Unit: millions of yen)
2016
Operating revenues¥ 140,606

Cost of operating revenues

108,888

Gross profit

31,717

Selling, general and administrative expenses

26,427

Operating income

5,290

Non-operating income:Interest and dividends income

90

Equity in earnings of non-consolidated subsidiaries and affiliates

59

Other

249

Total non-operating income

399

Non-operating expenses:
Interest expenses

40

Other

46

Total non-operating expenses

86

Ordinary income

5,603

Extraordinary income:Gain on transfer of benefit obligation relating to employees' pension fund131

Extraordinary loss:
Loss on disposal of noncurrent assets

24

Other

13

Total extraordinary loss

38

Income before income taxes and non-controlling interests

5,696

Income taxes:
Current

2,093

Deferred137

Total income taxes

2,231

Net income

3,465

Profit attributable to non-controlling interests

4

Profit attributable to owners of parent¥ 3,460(Note) The amounts shown are rounded down to the nearest million yen.

3Overview of each segment and group company
An overview of each segment and Group company is as follows.
(1) Retail Business segment
In relation to in-flight sales, we developed new overseas brands and expanded the lineup ofbasic cosmetics and other products in high demand by customers to capture demand fromincreased passengers on international routes. For EC, we expanded the lineup of original
products handled by ANA Shopping A-style, conducted aggressive promotional activities, andimplemented sales strategies such as changing the conversion ratio for ANA miles. For tourism
and gift-related businesses, we developed and began offering new region-specific products for
Hokkaido and Kyushu. Looking to expand our duty-free business, we made the decision toengage in the operation of airport-style off-airport duty-free shops.
As a result of the above, revenues in the Retail Business segment were 24,240 million yen,110.3% compared to the previous year.
The Retail Business segment and the Retail Business Company, which is comprised of theGroup companies, ANA FESTA Co., Ltd., ANA TRADING Duty Free Co., Ltd., and Fujisey Co.,
Ltd. implemented improvements to strengthen management and operating margin for theairport shops ANA FESTA and ANA Duty Free Shops. Sales were favorable thanks to store
renovations and various sales strategies, which helped capture demand from foreigners
visiting Japan, whose numbers again increased compared to the previous year.
Overall, the Retail Business Company achieved revenues and operating income that
outperformed the previous year.
(2) Aerospace & Electronics segment
As a result of efforts to achieve world-level QCD (Quality / Cost / Delivery) in ourprocurement of aircraft parts, we conducted dynamic cost management and used diligent
delivery schedule management to strengthen the competitiveness of the entire ANA Group
while advancing efforts domestically and internationally to develop new customers outside theANA Group. For Aircraft, we worked to expand our retired aircraft parts sales business andsecure income by conducting purchases in-Group and of retired long-haul aircraft through ouroffices in Japan, North America, and Europe. We also worked on new business development,
including providing overseas emergence support for the Japanese manufacturing industry. For
Electronics, in an environment of concerns about the business contraction of existing domestic
customers and other changes in our external operating environment, we worked to secure
income by strengthening relationships and strategic partnerships with existing customers
while also developing new customers.
As a result, revenues in the Aerospace & Electronics segment were 19,492 million yen,
112.7% compared to the previous year.
The Aerospace & Electronics segment and the Aerospace & Electronics Company, which iscomprised of the ANA TRADING CORP., U.S.A. (Machinery & Parts Business) and theInternational Cargo Service Co., Ltd. (Parts Business), performed favorably thanks to a strong
performance by the retired aircraft parts sales business (PINCS products) in the U.S.A. Also,
the increase in training contracts from LCCs and other emerging airline companies as well asfrom the Ministry of Defense resulted in performance that significantly outperformed plans.
4Overall, the Aerospace & Electronics Company achieved revenues and operating income that
outperformed the previous year.
(3) General Products & Media Services segment
Sales of cabin products grew thanks to growth in the air transportation business domain andincreased passenger numbers, which resulted in greater sales of in-flight consumables, drinks,and snacks. For AD. & Media, sales of various media, particularly in the ANA in-flight magazine,
were favorable as were sales of internet advertisements. We also conducted a merger toestablish a new company that will specialize in digital advertisements (ANA-Kuroko StrategicSolutions Co., Ltd.) For consumer products & materials, amid an environment of declining
demand for paper raw materials, we worked to secure profits by focusing management
resources on the paper products sales business, which is expected to see increased demand,and the pulp sales business, which continues to achieve stable sales. In relation to Loyalty
Innovation, we added new business partners and expanded the handling of product miles
while also launching "ANA Experience Japan," a form of internet media for foreign visitors toJapan. We made new investments in the wellness business aimed at expansion.
As a result, revenues in the General Products & Media Services segment were 35,305 million
yen, 114.4% compared to the previous year.
The General Products & Media Services segment and the General Products & Media Services
Company, which is comprised of our Group company, MUSASHINO MORI COUNTRY CLUB Co.,
Ltd., secured new members, expanded reservations, and aggressively implemented variousmeasures at the MUSASHINO MORI COUNTRY CLUB to increase customer numbers andimprove service quality.
Overall, the General Products & Media Services Company achieved revenues and operating
income that outperformed the previous year.
(4) Food Business segment
The Food Business Company, which is comprised of Group companies, ANA Foods Co., Ltd.,
A-Sweets House Inc., and ANA TRADING CORP., U.S.A. (foods business) secured profitability
by expanding sales channels for fresh bananas, our mainstay product, in the fresh foods
business and by negotiating price increases. We also established a continued maturation
processing center aimed at further expanding our share of the banana business. Sales ofprocessed foods were favorable thanks to capturing demand on the growing dry fruit and nuts
products market. The operating margin for gift-related operations improved thanks to having
secured comprehensive service contracts from existing customers. We also secured income for
the Export Business, for which full-scale operations for exporting Japanese food ingredients toSoutheast Asia were launched last year.
Overall, the Food Business Company achieved revenues and operating income that
outperformed the previous year.

5(5) Financial highlights■ Major financial figures (consolidated)(million yen)

FY2011FY2012FY2013

FY2014FY2015

Revenues

94,494

101,254

110,675

126,767

140,606

Recurring income

2,392

3,150

3,475

4,161

5,603

Net income

831

1,589

2,019

2,989

3,460

Total assets

48,88852,53854,89863,28862,765

Net assets

14,523

16,58418,30923,222

22,743■ ALL NIPPON AIRWAYS TRADING Group

Sales composition FY2015 (by company)*graph does not reflect elimination of inter-company transactions*1 As of April 2016, the Loyalty Innovation Dept. was transferred to the Retail Business Company.

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