All Nippon Airways Trading Co., Ltd.
Financial Statements 2018

Non-consolidated Balance Sheet
All Nippon Airways Trading Co., Ltd.
As of March 31, 2018
Millions of yenASSETS

2018

Current assets:
Cash and deposits¥760

Notes and accounts receivable - trade

10,387

Lease investment assets

6,277

Inventories

3,000

Short-term loans receivable

7,872

Deferred tax assets

203
88872

Other current assets

2,274

Allowance for doubtful accounts(53)
30,721

Property, plant and equipment:
Land

15721

Buildings and leasehold improvements

74

Vehicles, tools, furniture and fixtures
Construction in progress

890094
12

Rental assets

261
453

Intangible assets

921

Investments and other assets:
Investment securities

4,490

Investment securities of related parties

4,982

Long-term loans receivable

1,340

Lease and guarantee deposits

23

Other assets

161

Allowance for doubtful accounts(478)
10,520Total assets

See notes to non-consolidated financial statements.

¥42,617

Millions of yen
LIABILITIES AND NET ASSETS

2018

Current liabilities:
Notes and accounts payable
Short-term loans payable¥11,482
5,949

Current portion of long-term loans payable

380

Current portion of lease obligations

822

Advances received

597

Unearned revenue

624

Accrued operating expenses

84

Accrued income taxes

116

Other current liabilities

479
20,536Long-term liabilities:
Long-term debt, less current portion

1,300

Lease obligations, less current portion

4,839

Accrued employees' retirement benefits

510

Long-term deposits payable

350

Provision for directors' retirement benefits

107

Deferred tax liabilities

419

Long-term unearned received

1

Other long-term liabilities

92
7,621

Net assetsShareholders' equity:

12,105

Common stock:
Authorized---2,880,000 shares at March 31, 2018
Issued---654,724 shares at March 31, 2018

1,000

Retained earnings:

11,105

Legal reserve

250

Retained earnings

Accumulated other comprehensive income:Unrealized holding gain (loss) on securities
Unrealized gain (loss) from hedging instruments

10,855

2,354
2,352
2
14,459Total liabilities and net assets

See notes to non-consolidated financial statements.

¥42,617Non-consolidated Statement of Income
All Nippon Airways Trading Co., Ltd.
Year ended March 31, 2018

Millions of yen
2018

Net sales¥61,256

Cost of sales

53,204Gross profit

8,052

Selling, general and administrative expenses

7,676

Operating income

375

Non-operating income (expenses):Foreign exchange gain

92

Interest and dividend income

821

Interest expenses(26)

Other - net(18)

Ordinary income

1,244

Extraordinary gains and (losses):Gain on sale of securities
Loss on valuation of securities
Income before income taxes

89(223)
1,110

Income taxes:
Current

262

Deferred(43)218

Net income

See notes to non-consolidated financial statements.

¥891

Non-consolidated Statement of Changes in Net Assets
All Nippon Airways Trading Co., Ltd.
Year ended March 31, 2018
Millions of yen
Shareholders’ equity
Commonstock
Balance at April 1, 2017

¥1,000Earned surplus

Accumulated other comprehensive income
Total
accumulated
othercomprehensive
income¥2¥2,009Total net
assetsRetained earnings¥250¥10,447¥11,697(483)(483)(483)

891

891

891

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, 2018

Unrealized
holding gain(loss) onsecurities

Total
shareholders’equity¥250

See notes to non-consolidated financial statements.

¥2,007¥13,706

345

0345

345

407

407

345

0

345

753

¥10,855¥12,105¥2,352¥2¥2,354¥14,459

Notes to Non-consolidated Financial Statements
All Nippon Airways Trading Co., Ltd.
Year ended March 31, 2018

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 incertain 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 aform 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 2018 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, 2018 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 andheld-to-maturity securities are carried at amortized cost. Marketable securities classified as other securities arecarried at fair value with changes in unrealized holding gains or losses, net of the applicable income taxes,
included directly in net assets. Non-marketable securities classified as other securities are carried at cost. Costof securities sold is determined by the moving average method.

(c) Inventories
Inventories are principally stated at the lower of cost or net realizable value, cost being determined by themoving 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:

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 ---Straight-line method
Others ---- Declining-balance method

The Company principally applies the following useful lives:
Buildings and leasehold improvements

3 – 60 years

Structures

10 – 20 years

VehiclesTools, furniture and fixtures

6 years2 – 20 years

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

(e) Intangible assets and amortizationIntangible assets are amortized by the straight-line method. Cost of software purchased for internal use isamortized by 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 madeagainst specific receivables as and when required based on estimates of the collectability of receivables.

(g) 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 ofservice with the Company. The Company has trustee employees’ pension funds to provide coverage for thepart of the lump-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 amountcalculated based on the retirement benefit obligation and the fair market value of the pension plan assets at thebalance sheet date, as adjusted for unrecognized net retirement benefit obligation at transition, unrecognizedactuarial gains or losses and unrecognized prior service cost. The retirement benefit obligation is attributed toeach period by the 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 arerecognized by the straight-line method over periods which are approximately equal to the average remaining
service years of employees. Prior service cost is being amortized as incurred by the straight-line method overperiods which are approximately equal to the average remaining service years of employees.

(h) Provision for directors’ retirement benefitsThe Company records a reserve for retirement benefits for directors and corporate auditors based on theamount payable at the balance sheet date based on the internal regulations.

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

(j)Derivatives
The Company uses derivatives, such as forward foreign exchange contracts and interest rate swaps, tomanage 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.

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

(l)Deferred tax accountingDeferred tax assets and liabilities are recognized in the non-consolidated financial statements with respect tothe differences between the financial reporting and tax bases of the assets and liabilities, operating losses andtax credits carried forward. Deferred tax assets and liabilities are measured using enacted tax rates expected toapply to taxable income in the years in which the temporary differences are expected to be recovered or settled.
(See Note 7).

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

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

3.

TRANSACTIONS WITH PARENT COMPANY, SUBSIDIARIES AND AFFILIATES
Information on transactions with the parent company, subsidiaries and affiliates for the year ended March 31, 2018
was as follows:
Millions of yen
2018
Balances:
Notes and accounts receivable¥227

Short-term loans receivable

7,857

Other current assets

1,338

Long-term loans receivable

940

Notes and accounts payable

857

Short-term loans payable

6,209

Long-term debt

1,300

Transactions:
Sales

1,984

Purchases

3,801

Transactions other than operating transactions

4.

696

PROPERTY, PLANT AND EQUIPMENT
The following table sets forth the acquisition costs and related accumulated depreciation of certain property, plantand equipment at March 31, 2018:
Millions of yen
2018
Land

¥15

Buildings and leasehold improvements

156

Vehicles, tools, furniture and fixtures427

Construction in progress

12

Rental assets

1,917
2,531

Less accumulated depreciation(2,077)¥453

5. 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 30.86% for the year ended March 31,
2018. The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets andliabilities at March 31, 2018 are as follows:
Millions of yen
2018
Deferred tax assets:
Provision for doubtful receivables¥152

Accrued employees' retirement benefits and pension expense

255

Valuation loss on marketable and investment securities

401

Accrued expenses23

Other

214
1,046

Valuation allowance

(541)
504

Deferred tax liabilities:
Unrealized holding gain on securities

(616)

Other

(104)
(721)

Net deferred tax liabilities

6.

(¥217)AMOUNTS PER SHARE
Amounts per share as of and for the year ended March 31, 2018 are as follows:
Yen
2018
Net income¥1,361.72

Net assets

22,085.59

7.

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, 2018 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¥260

Long-term loans payable, less current portion

1,300

Short-term loans receivable

7,671

Other current assets (Advances)

1,231

ANA Foods Co., Ltd.

2018

Long-term loans receivable

523

Short-term loans receivable

118

ANA FESTA Co., Ltd.

Short-term loans payable

2,369International Cargo Service Co.,Ltd.

Short-term loans payable

635

ANA
Ltd. Trading Duty Free Co., Ltd.

Short-term loans payable

1,649Fujisey Co., Ltd.

Short-term loans payable

778

Related parties

Transactions

ANA HOLDINGS INC.

Borrowings¥1,560Loan of funds

7,671

Other current assets (Advances)

1,231

Millions of yen

ANA Foods Co., Ltd.

Loan of funds
Interest income

2018

641
8

ANA FESTA Co., Ltd.

Borrowings

2,369International Cargo Service Co.,Ltd.

Borrowings

635

ANA Trading Duty Free Co., Ltd.

Borrowings

1,649

Fujisey Co., Ltd.

Borrowings

778

The Company has related party transactions with other subsidiaries of ANA HOLDINGS INC. The correspondingbalances at March 31, 2018 and the amounts of these transactions for the year then ended are summarized asfollows:
Millions of yen
Related parties

Balances

All Nippon Airways Co., Ltd.

Notes and accounts receivable2018¥3,559559

Unearned revenue
Lease investment assets

2,269

ANA CATERING SERVICE CO.,LTD.

Lease investment assets

2,278

ANA NARITA AIRPORT SERVICES Co., Ltd.

Lease investment assets

647

Millions of yen
Related parties

Transactions

All Nippon Airways Co., Ltd.

Sales of products and goods and services

2018

ANA CATERING SERVICE CO.,LTD.

Lease transaction mainly for vehicles related to flight186

ANA NARITA AIRPORT SERVICES Co., Ltd.

Lease transaction mainly for vehicles related to flight41¥26,108Note:
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.

All Nippon Airways Trading Group(As of March 31, 2018)

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.
・a-sweets house inc.
・Musashinomori Country Club Co., Ltd.
・Fujisey Co., Ltd.
・ANA-Kuroko Strategic Solutions Co., Ltd.
・ANA Digital Gate, Inc.
・SG RETAIL PARTNERS PTE.LTD.
Affiliates:
・panda Flight Academy Co., Ltd.
・A2 Care Co., Ltd.
・Global Retail Partners Pte. Ltd.
・A&S Takashimaya Duty Free Co., Ltd.
・ANA X Inc.