ALL NIPPON AIRWAYS TRADING Co., LTD.
Financial Statements 2021

1

Non-consolidated Balance Sheet
ALL NIPPON AIRWAYS TRADING CO., LTD.
As of March 31, 2021
Millions of yen
ASSETS

2021

Current assets:
Cash and deposits¥916

Notes and accounts receivable - trade

6,914

Lease investment assets

7,105

Inventories

3,840

Short-term loans receivable

5,958

Other current assets

5,363

Allowance for doubtful accounts(95)
30,001

Property, plant and equipment:
Land

15

Buildings and leasehold improvements

60

Vehicles, tools, furniture and fixtures

30

Rental assets

367
472Intangible assets

742

Investments and other assets:
Investment securities

5,223

Investment securities of related parties

7,124

Long-term loans receivable

2,154

Lease and guarantee deposits

14

Prepaid pension costs

232

Other assets

317

Allowance for doubtful accounts(529)
14,536

Total assets¥45,753

See notes to non-consolidated financial statements.

2

Millions of yen
LIABILITIES AND NET ASSETS

2021

Current liabilities:
Notes and accounts payable¥12,994

Short-term loans payable

6,399

Current portion of long-term loans payable

260

Current portion of lease obligations

1,070

Advances received

468

Unearned revenue

540

Accrued operating expenses

424

Accrued income taxes

134

Other current liabilities

66
22,359Long-term liabilities:
Long-term debt, less current portion

520

Lease obligations, less current portion

3,943

Accrued employees' retirement benefits942

Long-term deposits payable

350

Provision for directors' retirement benefits

102

Long-term unearned received

0Long-term deferred tax liability

382
6,242

Net assets
Shareholders' equity:

14,188

Common stock:
Authorized---2,880,000 shares at March 31, 2021
Issued---654,724 shares at March 31, 2021

1,000

Retained earnings:

13,188Legal reserve

250

Retained earnings

12,938

Accumulated other comprehensive income:

2,964

Unrealized holding gain (loss) on securities

2,951

Unrealized gain (loss) from hedging instruments

12
17,152

Total liabilities and net assets¥45,753

See notes to non-consolidated financial statements.

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Non-consolidated Statement of Income
ALL NIPPON AIRWAYS TRADING CO., LTD.
Year ended March 31, 2021

Millions of yen
2021

Net sales¥36,400

Cost of sales

30,449Gross profit

5,951

Selling, general and administrative expenses

5,900

Operating income

51

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

183

Foreign exchange gain

153

Employment adjustment subsidy

170Interest expense(15)

Other - net

36

Ordinary income

579

Extraordinary gains and (losses):
Allowance for doubtful accounts reversal

16

Allowance for loss on liquidation of subsidiaries reversal

189

Gain on sale of investment securities

10

Loss on valuation of investment securities(9)

Loss on disposal of inventories(207)

Early premium retirement allowance(128)

Income before income taxes

451

Income taxes :Current

13

Deferred74
87

Net income¥363

See notes to non-consolidated financial statements.

4Notes to Non-consolidated Financial Statements
ALL NIPPON AIRWAYS TRADING CO., LTD.
Year ended March 31, 2021

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
2021 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, 2021 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:

5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

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)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.

(g) 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.

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

(i)

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 the6straight-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.

(j)

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.

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

(l)

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 ashedges.

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

(n) The Company bases lease transactions based on installment sales contracts on the deferred payment standard.

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

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3.

BALANCE SHEET(1) Accumulated depreciation of property, plant and equipment¥618(2) Credit and liabilities for related companies

4.

Current credit¥8,154Long-term credit

1,967

Current liabilities

7,161

Long-term liabilities

520

INCOME TAXThe 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, 2021. The
tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and liabilities at March
31, 2021 are as follows:

Millions of yen
2021
Deferred tax assets:
Valuation loss on marketable and investment securities¥394

Accrued employees' retirement benefits and pension expense

288

Provision for doubtful receivables

180

Loss carry forward

169

Other

118
1,149

Valuation allowance

(564)
584

Deferred tax liabilities:
Unrealized holding gain on securities

(883)

Other

(83)
(966)

Net deferred tax liabilities(¥382)

85.

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, 2021 and the amounts of these transactions for theyear 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

ANA FESTA CO., LTD.

2021
¥260

Long-term loans payable

520

Short-term loans receivable

5,716
842

Other current assets (Advances)
Short-term loans payable

3,560

Long-term loans receivable

1,266
779

installment receivable
INTERNATIONAL CARGO

922
Short-term loans payable

SERVICE CO., LTD.

856

ANA TRADING DUTY FREE
Short-term loans payable
CO., LTD.
FUJISEY CO., LTD.

1,008

Short-term loans payable

Millions of yen
Related parties

Transactions

ANA HOLDINGS INC.

Borrowings¥910

Loan of funds

6,216

Borrowings

2,730

Other current assets (Advances)

1,017

ANA FOODS CO.,LTD

ANA FESTA CO., LTD.

2021

633

Loan of funds
Lease transaction for Store equipment

0

INTERNATIONAL CARGOSERVICE CO., LTD.

Borrowings

838

Borrowings

1,128

Borrowings

1,238

ANA TRADING DUTY FREE
CO., LTD.
FUJISEY 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, 2021 are as follows:
Yen
2021

7.

Net income¥555.53

Net assets

26,198.08

SUBSEQUENT EVENTS
None.

ALL NIPPON AIWAYS TRADING GROUP(As of March 31, 2021)

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.
・MUSASHI NO MORI COUNTRY CLUB CO., LTD.
・FUJISEY CO., LTD.
・ANA CREATIVE OPERATION SERVICES CO., LTD.
・ANA DIGITAL GATE, INC.
・SG RETAIL PARTNERS PTE, LTD.
・FARWEST AIRCRAFT, INC.

Affiliates:・panda･Flight･Academy Inc.
・a2care Co., Ltd.
・Gateway Engine Leasing., LLC.

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