All Nippon Airways Trading Co., Ltd.
Financial Statements 2019

Non-consolidated Balance Sheet
All Nippon Airways Trading Co., Ltd.
As of March 31, 2019
Millions of yen
ASSETS

2019

Current assets:
Cash and deposits (Note 10)¥953

Notes and accounts receivable - trade (Notes 4, 10 and 11)

9,229

Lease investment assets (Note 11)

6,533

Inventories

3,540

Short-term loans receivable (Notes 4, 10 and 11)

7,750

Other current assets (Notes 4 and 11)

4,077

Allowance for doubtful accounts(63)
32,020Property, plant and equipment (Note 5):
Land

15

Buildings and leasehold improvements

84

Vehicles, tools, furniture and fixtures

54

Rental assets

138
292

Intangible assets

999

Investments and other assets:
Investment securities (Note 10)

4,672

Investment securities of related parties

7,103

Long-term loans receivable (Notes 4 and 11)

1,157

Lease and guarantee deposits

20

Other assets

165

Allowance for doubtful accounts(545)
12,574

Total assets

See notes to non-consolidated financial statements.

¥45,886

Millions of yen
LIABILITIES AND NET ASSETS

2019

Current liabilities:
Notes and accounts payable (Notes 4, 10 and 11)
Short-term loans payable (Notes 4, 10 and 11)¥12,761
8,283

Current portion of long-term loans payable (Note 10)260

Current portion of lease obligations

912

Advances received (Note 11)541

Unearned revenue

517

Accrued operating expenses

77

Accrued income taxes

92

Other current liabilities

555
24,001Long-term liabilities:
Long-term debt, less current portion (Notes 4,10 and 11)

1,040

Lease obligations, less current portion

4,287

Accrued employees' retirement benefits595Long-term deposits payable

350

Provision for directors' retirement benefits

125

Deferred tax liabilities

226

Long-term unearned received

1
6,627

Net assets (Notes 6 and 9)
Shareholders' equity:

12,821

Common stock:
Authorized---2,880,000 shares at March 31, 2019
Issued---654,724 shares at March 31, 2019

1,000

Retained earnings:

11,821

Legal reserve

250

Retained earnings

Accumulated other comprehensive income:

11,571

2,434

Unrealized holding gain (loss) on securities

2,438

Deferred gain (loss) on hedging instruments(3)
15,256

Total liabilities and net assets

See notes to non-consolidated financial statements.

¥45,886

Non-consolidated Statement of Income
All Nippon Airways Trading Co., Ltd.
Year ended March 31, 2019

Millions of yen
2019

Net sales (Notes 4 and 11)¥62,066

Cost of sales (Notes 4 and 11)

53,131Gross profit

8,935

Selling, general and administrative expenses

8,176

Operating income

759

Non-operating income (expenses) (Note 4):
Foreign exchange gain (Note 7)

129

Interest and dividend income

250Interest expenses(22)

Gain on investments in silent partnership

497

Other - net(83)

Ordinary income

1,531

Extraordinary gains (losses):
Loss on valuation of investment securities
Income before income taxes

(41)
1,490

Income taxes (Note 8):
Current

333

Deferred(26)
307

Net income (Note 9)

See notes to non-consolidated financial statements.

¥1,183

Non-consolidated Statement of Changes in Net Assets
All Nippon Airways Trading Co., Ltd.
Year ended March 31, 2019

Shareholders’ equity
CommonEarned surplus

Accumulated other comprehensive income
Unrealized
holding gain
(loss) on
securities

Unrealized gain
(loss) fromhedging
instruments

Total
accumulated
othercomprehensive
income¥2¥2,354

Total net
assetsLegal reserve

Retained earnings

Total
shareholders’equity¥250¥10,855¥12,105

Cash dividends paid

(466)

(466)

(466)

Net income

1,183

1,183

1,183

stock
Balance at April 1, 2018

¥1,000Net changes of items other thanshareholders’ equity during theyear
Total changes during the year
Balance at March 31, 2019

¥1,000¥250

See notes to non-consolidated financial statements.

¥2,352¥14,459

85

(5)

79

79

716

716

85

(5)

79

796

¥11,571¥12,821¥2,438¥(3)¥2,434¥15,256

Notes to Non-consolidated Financial Statements
All Nippon Airways Trading Co., Ltd.
Year ended March 31, 2019

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
2019 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, 2019 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 fi
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:

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

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 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) 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 of
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.

(h) 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.

(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, 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.

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

(l)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 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 parent
company.

3.

CHANGES IN PRESENTATIONS(i)

Changes in presentation of an accounts related to deferred tax assets and liabilities due to the adoption
of“PartialAmendments to Accounting Standard for Tax Effect Accounting”
Effective from the beginning of the fiscal year ended March 31, 2019, the Company has applied “Partial
Amendments to Accounting Standard for Tax Effect Accounting (Accounting Standards Board of Japan (ASBJ)
Statement No.28, issued February 16, 2018).
Deferred tax assets and deferred tax liabilities are now presented in “Investments and other assets” and“Long-term liabilities,” respectively, in the non-consolidated balance sheet.

(ii)

Changes in classification of dividends from consolidated subsidiaries due to an amendment to the Company’s
articles of incorporation related to its principal business activities
In previous fiscal years, dividends from consolidated subsidiaries were recognized in “Interest and dividend
income” (¥611 million for the fiscal year ended March 31, 2018).

Because of an amendment to its articles ofincorporation related to its principal business activities, the Company now includes such dividends in “Netsales” (¥695 million for the fiscal year ended March 31, 2019).

4.

TRANSACTIONS WITH PARENT COMPANY, SUBSIDIARIES AND AFFILIATES
Information on balances and transactions with the parent company, subsidiaries and affiliates as of March 31, 2019and for the year then ended was as follows:
Millions of yen
2019
Balances:
Notes and accounts receivable¥577

Short-term loans receivable

7,731

Other current assets

1,365

Long-term loans receivable775

Notes and accounts payable

641

Short-term loans payable

8,543

Long-term debt

1,040

Transactions:
Sales

2,922

Purchases

3,693

Transactions other than operating transactions
5.

30

PROPERTY, PLANT AND EQUIPMENT
The following table sets forth the acquisition costs and related accumulated depreciation of certain property, plant andequipment at March 31, 2019:
Millions of yen
2019
Land

¥15

Buildings and leasehold improvements

166

Vehicles, tools, furniture and fixtures

426

Rental assets

1,368
1,977

Less accumulated depreciation(1,686)¥291

6.

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

(1) Type and number of outstanding shares
Number of shares
Balance atApril 1, 2018

Increase in shares
during the year

Decrease in shares
during the year

Balance at
March 31, 2019

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, 2018

Extraordinary
generalmeeting ofshareholders

Common stock

¥466

¥713

March
31, 2018

June
29, 2018(3) Dividends with a shareholders' cut-off date during the current fiscal year ended March 31, 2019, but an effective
date subsequent to the current fiscal year
Date of approval
Not yetdetermined

7.

Resolution
approved byType of shares

Common stock

FOREIGN EXCHANGE GAIN OR LOSS

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

Shareholders'
cut-off date

Effective dateMarch
31, 2019

June
28, 2019

Foreign exchange gain or loss is recorded on a net basis. Net foreign exchange gain of 129 million yen was included
in determining net income for the year ended March 31, 2019.

8.

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, 2019. The
tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and liabilities at March
31, 2019 are as follows:
Millions of yen
2019
Deferred tax assets:
Provision for doubtful receivables¥180

Accrued employees' retirement benefits and pension expense

276

Valuation loss on marketable and investment securities

414

Accrued expenses

22

Other

221
1,116

Valuation allowance

(587)
528

Deferred tax liabilities:
Unrealized holding gain on securities

(656)

Other

(98)
(754)

Net deferred tax liabilities(¥226)

9.

AMOUNTS PER SHARE
Amounts per share as of and for the year ended March 31, 2019 are as follows:
Yen
2019

10.

Net income¥1,807.61

Net assets

23,302.14

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, 2019 areshown 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, 2019
Carrying value

Fair value

Difference

Assets:Cash on hand and in banks

¥953

¥953

¥-

Notes and accounts receivable

9,042

9,042

-

Short-term loans receivable

7,750

7,750

-

4,159

4,159

-

¥21,905¥21,905¥-

Investment securities:
Marketable securities
Total assets

Carrying value

Fair value

Difference

Liabilities:

Notes and accounts payable¥12,761¥12,761-

Short-term loans payable

8,283

8,283

-

Long-term debt

1,300

1,298

△1

Total liabilities¥22,345¥22,343¥△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, 2019
Investment securities
Investment securities of related parties

Millions of yen¥512¥7,103¥7,615

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.

11.

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, 2019 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¥260

Long-term loans payable

1,040

Short-term loans receivable

7,551

Other current assets (Advances)

1,077

Short-term loans payable

1,610

Long-term loans receivable

405

Short-term loans receivable

118

ANA FESTA Co., Ltd.

Short-term loans payable

1,936International Cargo Service Co.,Ltd.

Short-term loans payable

686

ANA Trading Duty Free Co., Ltd.

Short-term loans payable2,652

Fujisey Co., Ltd.

Short-term loans payable

1,019

ANA Foods Co., Ltd.

2019

Millions of yen
Related parties

Transactions

ANA HOLDINGS INC.

Borrowings¥1,300Loan of funds

7,551

Borrowings

1,610

Other current assets (Advances)

1,077

ANA Foods Co., Ltd.

Loan of funds
Interest income

2019

523
7

ANA FESTA Co., Ltd.

Borrowings

1,936International Cargo Service Co.,Ltd.

Borrowings

686

ANA Trading Duty Free Co., Ltd.

Borrowings

2,652

Fujisey Co., Ltd.

Borrowings

1,019

The Company has related party transactions with other subsidiaries of ANA HOLDINGS INC. The correspondingbalances at March 31, 2019 and the amounts of these transactions for the year then ended are summarized as follows:

Millions of yen
Related parties

Balances

2019

All Nippon Airways Co., Ltd.

Notes and accounts receivable¥3,555

Other current assets (Advances)

1,087

Lease investment assets

1,961

ANA CATERING SERVICE CO.,LTD.

Lease investment assets

2,293

ANA NARITA AIRPORT SERVICES Co., Ltd.

Lease investment assets

536

Millions of yen
Related parties

Transactions

All Nippon Airways Co., Ltd.

Sales of products and goods and services

2019

ANA CATERING SERVICE CO.,LTD.

Lease transaction mainly for vehicles related to flight183

ANA NARITA AIRPORT SERVICES Co., Ltd.

Lease transaction mainly for vehicles related to flight58¥27,284

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.

12.

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, 2019 is as follows:
Millions of yen
2019
Total commitment available
Less amount utilized
Balance available¥6,700¥6,700All Nippon Airways Trading Group(As of March 31, 2019)

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 Creative Operation Services 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.