Consolidated Financial Results
for the year ended March 31, 2019

ANA TRADING CO., LTD.

Overview of Consolidated Financial Results for FY2018
 Consolidated Balance Sheet
Item（Millions of yen）

March 31, 2018 March 31, 2019

AssetsCurrent assets

Item
Liabilities

48,08549,210Cash and deposits

1,660

2,160

Notes and accounts payable-trade

Notes and accounts receivable-trade

12,64011,645

Accounts receivable-other

4,518

Lease investment assets
Merchandise

26,752

27,66813,042

13,757

Short-term loans payable

106

266

4,761

Current portion of long-term debt380260

7,945

8,014

Finance lease obligations

1,028

1,135

Accounts payable - other

8,499

8,793

10,204

10,773

Raw materials and supplies

341

241

Short-term loans receivable

7,715

7,588

Other current assets

3,124

4,084

Allowance for doubtful account

△ 67

△ 58

17,685

19,724

Fixed assets

Current liabilities

Accrued income taxes

527

482

Accrued bonuses to employees

973

1,043

2,194

1,930

Long-term liabilities

Other current liabilities

10,607

10,081Long-term debt

1,300

1,039

Finance lease obligations

6,193

5,493

173

213

2,283

2,791

656

543

37,35937,749Property and equipment

6,758

6,284

Accrued corporate executive officers’
retirement benefits

Buildings and structures

Liability for retirement benefits

3,017

2,868

Machinery, equipment and vehicles

587

490

Tools, furniture and fixtures

751

629

2,244

2,216

Land

March 31, 2018 March 31, 2019

Other long-term liabilities
Total liabilities

Construction in progress96

9 Net assets

Other60

70

Shareholders’ equity

26,591

29,213

2,516

2,329

Capital stock

1,000

1,000

Goodwill

685

570

Capital surplus

Software

1,688

1,584

Software in progress

105137

Other intangible assets

3636

Intangible fixed assets

Investments and others

8,410

11,111

Investment securities

26

26

25,56428,186

Accumulative other comprehensive income

1,661

1,793

Unrealized holding gain (loss) on securities

2,401

2,489

Unrealized gain (loss) from hedging
instruments

△ 167

38

Retained earnings

5,081

7,596

Foreign currency translation adjustments

△ 212

△ 160

Long-term loans receivable

460

400

Remeasurements of defined benefit plans

△ 360

△ 574

Deferred tax assets

867888158179

Net defined benefit asset

9090

Total net assets

28,411

31,185

Total liabilities and net assets

65,771

68,935

Other

2,311

2,525

Allowance for doubtful account

△ 400

△ 391

65,771

68,935

Total assets

Non-controlling interests(Note) The amounts shown are rounded down to the nearest million yen.

© 2019 ALL NIPPON AIRWAYS TRADING GROUP

1

Overview of Consolidated Financial Results for FY2018
 Consolidated Statement of Income（Millions of yen）

Item

March 31, 2018

March 31, 2019

Operating revenues
Cost of operating revenues
Gross profit

142,877
109,60533,271

152,081
116,336
35,745

Selling, general and administrative expenses

29,021

31,940Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of non-consolidated
subsidiaries and affiliates
Foreign exchange gains
Income from investments in partnership
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of non-consolidated
subsidiaries and affiliates
Loss on retirement of fixed assets
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on sales of fixed assets
Loss on valuation of investment securities
Impairment loss
Loss on disaster
Other
Total extraordinary losses
Profit before income taxes
Income taxes
Current
Deferred

4,250

3,804

10131

12231

ProfitProfit attributable to:Non-controlling interests
Owners of parent－

248

128
84
96
450

167
497
80
1,237

27

31

186－

42
39
296
4,404

37
45
114
4,927

89
89－
－－
－
85－
－
85
4,408

1
41
138
174
204
4,722

1,626
△ 84
1,541
2,866
0
37
2,829

1,611
△ 36
1,5753,147
058
3,088

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

© 2019 ALL NIPPON AIRWAYS TRADING GROUP

2

Overview of Consolidated Financial Results for FY2018● The Japanese economy this fiscal year remained firm due to strong capital investment, strong corporate profits, and other factors.
Meanwhile the global economy experienced a clear deceleration in the economies of countries other than the U.S. The economic outlook
in the future remains uncertain, owing to trade friction between the U.S. and China and the direction of the UK’s exit from the EU(Brexit). The aviation industry achieved a record high in the number of visitors to Japan, reaching 31.19 million visitors. an increase of
8.7% YoY from FY2018. This growth was achieved despite the closure of the Kansai International Airport for Typhoon No. 21 and theimpact from the Hokkaido Eastern Iburi Earthquake.
● As a trading group responsible for diverse businesses within the ANA Group, the group endeavored to expand external revenue byexerting maximum leverage on our strengths to expand business and take on new business domains, under these circumstances. This
resulted in consolidated operating revenues of 152,081 million yen, an increase of 6.4% YoY.
● We worked to further expand overseas businesses in new business domains, acquiring an equity interest in GA Telesis LLC of the U.S.,and establishing Gateway Engine Leasing LLC, an engine leasing company, as a joint venture with GA Telesis LLC and Tokyo Century
Corporation.

● Delays in implementing our strategy in some businesses caused a decline in operating income compared with last fiscal year, but ordinary
income increased owing to gains on investment activities that have been part of our existing business strategy.
● The above factors resulted in net income attributable to owners of parent of 3,088 million yen, growth of 9.1% YoY.

 Consolidated Operating Results(Millions of yen)

FY2017FY2018ChangeOperating revenues

142,877

152,081

9,204

Operating income

4,250

3,804

▲446

Ordinary income

4,404

4,927523

Net income attributable toowners of parent

2,829

3,088259

EBITDA*1

5,587

5,092

▲495

*1 EBITDA = Operating income + depreciation expenses© 2019 ALL NIPPON AIRWAYS TRADING GROUP

3

Overview of Business Segments Ratio of Operating Revenues by Segment* Graph does not reflect elimination of inter-company transactions

Other 1.0%
Lifestyle Business Company
・ Business Development Dept.
・ In-flight Products & Service Dept.
・ Consumer Products & Materials Dept.
・ MUSASHI NO MORI COUNTRY CLUBCO., LTD.
・ FUJISEY CO., LTD.

Retail Business Company
・ Business Development Dept.
・ ANA FESTA CO., LTD.
・ ANA TRADING DUTY FREE CO., LTD.
・ SG RETAIL PARTNERS PTE. LTD.

17%
30%
14%

Digital Marketing Company
Aerospace &Electronics Company

25%

・ Aviation Dept.
・ Aircraft Parts Dept.
・ Aerospace Systems Dept.
・ Electronics Dept.
・ ANA TRADING CORP.,U.S.A.
(Machinery & Aircraft Parts Business)
・ INTERNATIONAL CARGO SERVICE CO., LTD.
(Aircraft Operations Support Business)

・ Business Development Dept.
・ EC Business Dept.
・ In-flight Sales Merchandising Dept.
・ AD. & Media Dept.
・ ANA CREATIVE OPERATION SERVICES CO.,LTD.
・ ANA DIGITAL GATE, INC.

13%

Food Business Company
・ ANA FOODS CO., LTD.
・ A-SWEETS HOUSE INC.
・ ANA TRADING CORP.,U.S.A. (Foods Business)© 2019 ALL NIPPON AIRWAYS TRADING GROUP4Overview of Business Segments
 Retail Business Company(Millions of yen)

● ANA FESTA Co., Ltd. airport shop operations saw operating income decline
due to the impact of the typhoon, earthquake, and other external factors;
however, ANA TRADING Duty Free Co., Ltd. recorded growth in both
operating revenues and operating income due to strong sales in the dutyfree business, which benefitted from the robust growth in foreign visitors toJapan.
● In our overseas business, SG RETAIL PARTNERS PTE.LTD., which wasestablished in FY2018 and opened the JAPAN GOURMET HALL SORA foodhall in Terminal 2 of Changi International Airport in December 2017,
reached profitability, achieving growth in both operating revenues andoperating income.

Operating revenues

Operating income

46,83740,16334,789

1,742

1,795

FY20172017年度FY20182018年度● The above factors resulted in operating revenues of 46,837 million yen, an
increase of 16% YoY, and operating income of 1,795 million yen, growth of
3% YoY.
FY20172017年度 Digital Marketing Company

FY20182018年度* Inter-company transactions have not been eliminated.

● The Digital Marketing Company improved user convenience and growth inoperating revenues in both of its business departments through theplanning and development of new digital services, such as the Mile Direct
service on the A-Style e-commerce site of the EC Business Dept., whichenables users to make purchases with just one mile and more, and the@SKY service in the In-flight Sales Merchandising Dept., which enables
passengers to purchase merchandise on-board even after landing.

(Millions of yen)

Operating revenues
19,064

Operating income

20,144● The AD. & Media Dept. achieved growth in operating revenues throughinitiatives such as enhancing onboard entertainment content bystrengthening the digital marketing area and onboard Wi-Fi.
● The Digital Marketing Company worked to expand into new business domains
such as the smart payments business in ANA Digital Gate, Inc., and the digital
gift business and marketing business with ANA X Inc. using miles andcustomer data in relation to the Business Development Dept.
● The above factors resulted in operating revenues of 20,144 million yen, an
increase of 5% YoY, and operating income of 1,058 million yen, growth of12% YoY.

21,800940

1,058

1,130

2017年度FY20172018年度FY20182017年度FY20172018年度FY2018*Inter-company transactions have not been eliminated.

© 2019 ALL NIPPON AIRWAYS TRADING GROUP5

Overview of Business Segments
 Food Business Company(Millions of yen)

● In the Fresh Food Business, sales performed well during the 1H, but inclement
weather in producing locations during the 2H caused a decline in production. Thisin turn caused cost of sales and variable costs to rise, resulting in growth inoperating revenues and a decline in operating income.
● The Processed Food Business experienced a decline in both operating revenues
and operating income. This resulted from the business no longer carrying someproducts and a steep rise in market prices in some producing locations, whichcaused deterioration in the profit margin.
● The Export Business and the Gift Business integrated their food businessplanning departments from FY2018 to increase purchasing power. Thesebusinesses recorded growth in operating revenues and decline in operating
income owing to the development of catalogs that feature main merchandisefor the basement floors of department stores (where food products are sold) inJapan and efforts targeting imports and exports between the U.S. and Japan in
the overseas business.
● The above factors resulted in operating revenues of 38,113 million yen, an
increase of 4% YoY, and operating income of 449 million yen, a decline of 30%
YoY.

Operating revenues
36,496

Operating income

38,11335,773
639
449

1,323

FY20172017年度FY20182018年度FY20172017年度* Inter-company transactions have not been eliminated.

(Millions of yen)

 Aerospace & Electronics Company● The Electronics Business saw an increase in both operating revenues andoperating income, Record high profit was achieved by expanding overseas
contracting for semiconductor manufacturing, and by strengthening services
and support for domestic clients amid voracious demand in the semiconductor
industry.
● In the air transportation-related businesses, we acquired an equity interest in
GA Telesis LLC of the U.S. and established Gateway Engine Leasing LLC, anengine leasing company, as a joint venture with GA Telesis LLC and Tokyo
Century Corporation. Our goal in doing so is to create opportunities for externalsales and expand the business.
● In aircraft parts and equipment, we worked to support aircraft operation and help
improve competitiveness for ANA Group airline companies by reducing the costand improving the quality of service parts. Meanwhile, in the aircraft parts sales
business, we failed to achieve the goal for the number of external aircraft
acquired. This, combined with slow sales of parts, resulted in a decline in both
operating revenues and operating income.
● The above factors resulted in operating revenues of 21,364 million yen, andincrease of 2% YoY, and operating income of 986 million yen, a decline of 26%
YoY.

FY20182018年度Operating revenues

20,788Operating income

21,364

1,328
986

18,5161,208

2017年度FY20172018年度FY20182017年度FY20172018年度FY2018* Inter-company transactions have not been eliminated.

© 2019 ALL NIPPON AIRWAYS TRADING GROUP

6Overview of Business Segments Lifestyle Business Company(Millions of yen)

● The In-flight Products & Service Dept. secured revenues through steadyprocurement and supply in response to rising demand for in-flight products
and services as the number of ANA passengers rose and services expanded.

Operating revenues
27,466

Operating income

26,908● Fujisey Co., Ltd., which handles tourist gifts, has begun planning and selling
products licensed for the Tokyo 2020 Olympics and Paralympics, andrecorded growth in both operating revenues and operating income.
● The Consumer Products & Materials Dept. made advance investments in thefuture growth of anti-bacterial odor-eliminating agents and focused efforts
on growth. The department also saw an increase in costs due to a change inlogistics vendors.

27,135102● The above factors resulted in operating revenues of 26,908 million yen, adecline of 3% YoY, and an operating loss of 121 million yen.

362

FY20172017年度FY20182018年度-121

2017年度FY20172018年度FY2018* Inter-company transactions have not been eliminated.

© 2019 ALL NIPPON AIRWAYS TRADING GROUP

7Financial Highlights
 Major Financial Figures(Millions of yen)

FY2014

Operating revenues

FY2015FY2016FY2017FY2018

126,767

140,606

136,822

142,877

152,081

Ordinary income

4,161

5,603

4,755

4,404

4,927

Owners of parent

2,989

3,460

2,862

2,829

3,088

Total assets

63,28862,76561,744

65,771

68,935

Net assets

23,222

22,74326,00928,411

31,185

36.6

36.1

41.9

43.0

45.0

Equity ratio (%)

 Trend in Operating Revenues and Net Income

 Trend in Total Assets and Net Assets(Millions of yen)

売上高
Operating revenues

当期純利益
Net income

160,000

152,081150,000

142,877

140,606

120,000
110,000

70,0005,000
4,000

126,767

3,000

3,460
2,989

2,862

3,088
2,829

Total assets
総資産

6,000

136,822140,000
130,000(Millions of yen)

63,28862,765

Net assets
純資産61,744

68,93565,77160,00050,00040,00030,0002,000

22,74323,22226,00928,411

31,18520,000100,000
1,000

90,00080,0000
2014年度FY20142015年度FY20152016年度FY20162017年度FY20172018年度FY201810,0000
2014年度FY20142015年度FY2015© 2019 ALL NIPPON AIRWAYS TRADING GROUP

2016年度FY20162017年度FY20172018年度FY20188