All Nippon Airways Financial Results FY11 First Quarter · 《Be an LCC market leader》 FY2011...

©ANA2011 1

All Nippon AirwaysFinancial Results FY11 First Quarter

July 29, 2011

Shinichiro ItoPresident and CEO

Tomohiro HidemaExecutive Vice President

and CFO

©ANA2011 2

Contents

Ⅰ. FY11 First Quarter Results andFY11 Earnings Forecast

Highlights FY11 First QuarterConsolidated Financial Summery

Income StatementsConsolidated Financial PositionConsolidated Statements of Cash FlowResults by Segment

Air Transportation BusinessOperating Revenues and ExpensesOperating Income ChangeDomestic Passenger OperationsInternational Passenger OperationsCargo Operations (Domestic & International)

Ⅲ. FY2010 Financial Results First Quarter (Detail)

Financial Report FY11 First QuarterFY2011 Earnings Forecast

P.14

P.15P.16P.17P.18

P.19P.20P.21-22P.23-26P.27-30

Consolidated Earnings ForecastEarning Forecast by SegmentAir Transportation Business

Operating Revenues and ExpensesOperating Income Change

Earnings Forecast Assumptions(Passenger & Cargo)

Consolidated Balance Sheet (Plan)Consolidated Cash Flow (Plan)

P.33-34P.35

P.37P.38P.39-40

P.41P.42

Ⅳ. FY2011 Earning Forecast (Detail)

P.5P.6

Ⅱ. Corporate StrategyLCC Business StrategyANA Group's Growth Strategy

P.8-11P.12

Fuel Price and Exchange RateInternational Passenger Results

by DestinationInternational Cargo Results

by DestinationAircraft in Service

P.44P.45

P.46

P.47

Ⅴ. Supplemental Reference

【Part Ⅰ】

【Part Ⅱ】

©ANA2011 3

I. FY11 First Quarter Results and FY11 Earnings Forecast

【Part Ⅰ】

©ANA2011 4

Intentionally Blank

©ANA2011 5

1Q/FY111Q/FY11 Diff. vs. Diff. vs. 1Q/FY101Q/FY10 ChangeChange

Operating RevenuesOperating Revenues 305.0 - 1.7 - 0.6%Air Transportation Air Transportation BusinessBusiness 274.3 - 0.2 - 0.1%

Operating Income (Loss)Operating Income (Loss) - 8.1 - 11.0 -Air Transportation Air Transportation BusinessBusiness - 9.2 - 10.4 -

Recurring Income (Loss)Recurring Income (Loss) - 14.4 - 11.4 -Net Income (Loss)Net Income (Loss) - 8.4 - 3.2 -EBITDAEBITDA 20.7 - 10.7 - 34.0%

Financial Report FY11 First Quarter

《Financial Results FY11 First Quarter》

【1Q Financial Results Key Points】

◆Significant Declines in Demand and Revenues

《Impact of earthquake on revenues》Domestic Passenger; -26 billion yenInternational Passenger; -9 billion yen

◆Flexible ASK Adjustments

《Domestic ASK》-8%(vs. initial plan) -2%(vs. FY10)

《International ASK》-1%(vs. initial plan) +25%(vs. FY10)

◆Cost Reduction Measures

《Progress of Cost Reduction of 30 billion》・Linked to ASK; -5.0 billion yen・Reduce budget and cut back expenditure; -4.0 billion yen

((¥¥ billion)billion)

Despite flexible cost control measures, revenues were driven dowDespite flexible cost control measures, revenues were driven down n by the earthquake and so we closed in deficit.by the earthquake and so we closed in deficit.

©ANA2011 6

FY2011 Earnings Forecast

Return to profitability by striving to improve revenues through Return to profitability by striving to improve revenues through cost reduction cost reduction initiatives and demand stimulation; we plan to issue a dividend initiatives and demand stimulation; we plan to issue a dividend of of 22 yen.yen.

FY11FY11 YearYear--onon--Year Year ChangeChange

Operating RevenuesOperating Revenues 1,410.0 + 52.3Air Transportation Air Transportation BusinessBusiness 1,276.0 + 57.7

Operating Income (Loss)Operating Income (Loss) 70.0 + 2.1Air Transportation Air Transportation BusinessBusiness 67.0 + 6.4

Recurring Income (Loss)Recurring Income (Loss) 36.0 - 1.0Net Income (Loss)Net Income (Loss) 20.0 - 3.3EBITDAEBITDA 197.0 + 10.7Ratio of ShareholdersRatio of Shareholders’’Equity (%)Equity (%) 26.1 - 0.1

DE Ratio (times)DE Ratio (times) 1.8 + 0.0

Dividends (Per Share)Dividends (Per Share) ¥2 -

《FY11 Full-Year Results and Financial Benchmarks Outlook》

((¥¥ billionbillion))

【Earnings Forecast Key Points】

◆Return to Profitability

◆Dividend Plan Same Level as Last Year

◆Revenues Impacted by the Earthquake

・These impacts will be eliminated by the end of FY11 (approx)

・Demand stimulation through sales strategies

◆Continue Reducing Costs and Expenses

・Strive to achieve cost reductions of 30 billion yen・Additional efforts to reduce expenses

©ANA2011 7

Ⅱ. Corporate Strategy

©ANA2011 8

LCC Business Strategy

RyanairRyanair

EaEasyjetsyjet

AF/KLAF/KL

LHLH

BA/IBBA/IB

71,229

42,401

69,816

56,693

50,358

JL UA/COUA/CO

DLDL/NW/NW

AAAA

SQSQ

CXCX

41,428

Jet StarJet Star

QF GroupQF Group（（Incl. Jet StarIncl. Jet Star））

14,565

16,054

16,621

19,723

106,228

97,618

111,159

86,129

Southwest

KE

43,585

36,959

22,399

Asia & PacificAsia & PacificEuropeEurope United StatesUnited States

LCC presence will expand globallyLCC presence will expand globally

[Total Passengers] (thousands)

IATA WATS 52th

IATA WATS 55th

Materials released by other companies

2010

2007

©ANA2011 9

Total demand is gradually falling

No business structure has been developed for high-

growth markets


Further validation of changes and issues in the future business Further validation of changes and issues in the future business environment and new opportunities for the LCC businessenvironment and new opportunities for the LCC business

【【Improved Competitive Posture of Improved Competitive Posture of Transport CompetitorsTransport Competitors】】

Extension of the Extension of the ShinkansenShinkansen(Hokuriku/Hokkaido)(Hokuriku/Hokkaido)

Expansion of the express bus Expansion of the express bus nnetworketwork

【【Effects of Low Birthrate Aging Effects of Low Birthrate Aging Population in Full SwingPopulation in Full Swing】】

Decline in domestic passenger trafficDecline in domestic passenger traffic

Weakened growth in domestic Weakened growth in domestic demand for flights to/from Japandemand for flights to/from Japan

【【Tough Tough Competition in Competition in Air Transportation IndustryAir Transportation Industry】】

Restructuring of our main Restructuring of our main CCompetitorompetitor

New Participant in international New Participant in international routes and boosting supplyroutes and boosting supply

【The Japanese LCC Market】

Expansion of Narita will open the door to LCC in the Tokyo Metropolitan area

Full scale launch of domestic routes by foreign LCC

【【Competitive Posture of Hub AirportsCompetitive Posture of Hub Airports】】

Demand for connecting Demand for connecting passengers shifting from Narita to passengers shifting from Narita to IncheonIncheon, Beijing and Shanghai, Beijing and Shanghai

《Domestic Market Issues》《International Market Issues》

【 Environmental Changes in JapanEnvironmental Changes in Japan 】

【 JapanJapan’’s Position in the global Scene and Asian Markets Position in the global Scene and Asian Market 】

【【European/US MarketEuropean/US Market】】

Demand for business travel Demand for business travel remains strongremains strong

©ANA2011 10

JAPAN

Launch new Tokyo Metropolitan area based LCC soon Launch new Tokyo Metropolitan area based LCC soon and preempt the Japanese LCC marketand preempt the Japanese LCC market


Company: AirAsia Japan

Established: August, 2011 (plan)

Operation commence: August, 2012 (plan)

Ownership share: ANA 67% Air Asia 33%

Routes:

Domestic and international routes at Narita

Service Brand:

Build an overwhelming cost competitive edge that will enable us to survive in expanding Asia and China

Cost Competitive Edge Cost Competitive Edge Based on Asian StandardBased on Asian Standard

New SQ LCC Jet Star/JALSpring Airlines

South Korean LLCs

LCCsLCCs Enter JapanEnter JapanExpanded Slot Expanded Slot

at Naritaat NaritaOpportunities for LCCs to enter

250,000 slots (FY12)270,000 slots (FY13)300,000 slots (FY15)

DualDual--brandbrandOur strength as a network airline

×Cost-consciousness

(Regions not covered by ANA)

©ANA2011 11

JAPAN


The brand strategy will be customized to target customers and The brand strategy will be customized to target customers and the division of Group Airline functions will be clarifiedthe division of Group Airline functions will be clarified

New New DemandDemand

Low EndLow End

High EndHigh End

Existing Existing demanddemand

ANA 《ANA+ANK Merger in Apr.2012 (plan) 》

Mid and wide body / based in the Tokyo Metropolitan AreaEntire domestic and international route network

ANA WingsNarrow-Body (Jet・Prop) / based at Kansai and Chubu

Domestic routes and short-haul international routes

Air JapanMid body

Tokyo Metropolitan area and OkinawaInternational routes and freighter

Mid and narrow body / based at Narita domestic and international LCC brand

Narrow body / based at Kansai domestic and international LCC brand

©ANA2011 12

JAPAN

Overcome the effects of the earthquake so that we can begin growOvercome the effects of the earthquake so that we can begin growing again ing again as soon as possible and achieve stable, sustainable growthas soon as possible and achieve stable, sustainable growth

ANA Group's Growth Strategy

Stable and Stable and sustainable growthsustainable growth

Enhance Enhance corporate valuecorporate value

ProfitabilityProfitability

Corporate Corporate valuevalue

《《Continue growing as a network airlineContinue growing as a network airline》》

《《Be an LCC market leaderBe an LCC market leader》》

FY2011 (Plan)FY2011 (Plan)Op. RevenuesOp. Revenues

1,410 billion yen1,410 billion yen

Op. IncomeOp. Income

70 billion yen70 billion yen

Op. MarginOp. Margin 5%5%

【【FY2011 Management FY2011 Management ThemesThemes】】

B787 12B787 12 aircraft aircraft introducedintroduced20 aircraft will be introduced by FY1220 aircraft will be introduced by FY12

New MidNew Mid--Term Term Corporate StrategyCorporate Strategy

20112011--12 Corporate Plan12 Corporate Plan““ Enhance managerial efficiency through maximum Enhance managerial efficiency through maximum

utilization of management resources utilization of management resources ""

Expansion of Hanedainternational route slotsPlan to launch European routes Plan to launch European routes (over(over--night flights)night flights)

Japan/US and Japan/US and Japan/Europe JVs ProgressJapan/Europe JVs Progress

Further cost restructuring Further cost restructuring initiativesinitiatives Lower unit costsLower unit costs

©ANA2011 13

Ⅲ. FY2011 Financial Results First Quarter （Details）

【Part Ⅱ】

©ANA2011 14

-40

-20

0

20

40

60

80

100

Op. Income Net Income EBITDA

Highlights FY11 First Quarter

(¥ billion)

Highlights of Financial Results FY11 1Q and FY10 1Q-4Q

Consolidated operating revenue and income for 1Q posted a narrow loss of 8.1 billion yen (11.0 billion yen year-on-year decline).

8.4 billion yen net loss for the quarter (3.2 billion yen year-on-year decline); EBITDA of 20.7 billion yen (10.7 billion yen year-on-year decline).

FY2010 FY2011

1Q 2Q 3Q 4Q 1Q

©ANA2011 15(¥ billion)

Income Statements

Consolidated Financial Summary

Difference1Q/FY111Q/FY10

Operating Revenues 306.8 305.0 -1.7

Operating Expenses 303.8 313.1 + 9.3

Operating Income 2.9 - 8.1 - 11.0

Op. Margin (%) 1.0 - -

Non-Op. Gains/Losses - 5.9 - 6.3 - 0.4

Recurring Income - 2.9 - 14.4 - 11.4

Extraordinary Gains/Losses - 2.3 - 0.1 + 2.2

Net Income - 5.2 - 8.4 - 3.2

Net Income Before Minority Interests - 5.2 - 8.4 - 3.2

Other Comprehensive Income -20.3 - 7.5 + 12.7

Comprehensive Income - 25.5 - 16.0 + 9.5

©ANA2011 16

(¥ billion)

Consolidated Financial Position


*D/R ratio when including off-balanced lease obligation of ¥166.4 billion (¥ 170.2 billion as of the end of March, 2011)is 2.5 times (2.1 times as of the end of March, 2011)

Mar 31, 2011 Jun 30, 2011 Difference

+ 0.4pts2.21.8Debt/Equity Ratio (times)

+ 165.81,104.6938.8Interest Bearing Debts

- 3.024.0 27.0Ratio of Shareholders' Equity (%)

- 20.8499.3520.2Shareholders' Equity

+ 155.62,083.71,928.0Assets

©ANA2011 17

Consolidated Statements of Cash Flow


- 27.820.248.1Capital Expenditures

+ 0.328.828.4Depreciation and Amortization

237.0185.5Cash and Cash Equivalent at the end+ 35.4

201.6148.1Cash and Cash Equivalent at the beginning

- 1.935.437.3Net Increase or Decrease

+ 72.7159.987.2Cash Flow from Financing Activities

- 44.5- 133.7- 89.2Cash Flow from Investing Activities

- 30.29.239.4Cash Flow from Operating Activities

(¥ billion)

1Q/FY10 1Q/FY11 Difference

- 3.4pts6.8 10.3EBITDA Margin(％)

- 10.720.731.4EBITDA (*)

* EBITDA：Op. Income + Depreciation


Results by Segment


Air Transportation 274.5 274.3 - 0.2

Travel Services 32.7 26.4 - 6.2

Total for Reporting Segments 307.2 300.8 - 6.4Other 34.1 33.4 - 0.6

Adjustment - 34.5 - 29.1 + 5.3

Total 306.8 305.0 - 1.7Air Transportation 1.1 - 9.2 - 10.4

Travel Services 0.6 0.0 - 0.6

Total for Reporting Segments 1.8 - 9.2 - 11.0Other 1.0 0.9 - 0.0

Adjustment 0.0 0.1 + 0.0

Total 2.9 - 8.1 - 11.0

Revenues

Operating

Income

Difference1Q/FY111Q/FY10


1Q/FY10

- 10.4- 9.21.1Operating Income+ 10.2283.6273.3Total+ 0.745.244.4Others

+ 1.021.020.0Contracts

- 1.813.715.5Sales Commission and Promotion

+ 4.361.156.7Personnel

+ 1.610.79.0Aircraft Maintenance

+ 0.428.327.9Depreciation and Amortization

- 0.215.415.7Aircraft Leasing Fees

+ 0.222.722.5Landing and Navigation Fees

+ 3.865.061.2Fuel and Fuel Tax

- 0.2274.3274.5Total- 0.437.237.7Others

+ 4.033.229.1Cargo and Mail

+ 5.169.264.1International Passengers

- 8.9134.5143.5Domestic Passengers

OperatingExpenses

OperatingRevenues

Op. Income

1Q/FY11 Difference

Air Transportation Business

Operating Revenues and Expenses

©ANA2011 20

Operating Income Change


(¥ billion)

- 8.9CargoCargo& Mail& Mail

DomesticDomesticPassengerPassenger

Fuel Fuel & Fuel Tax& Fuel Tax

OperationOperation--LinkedLinked+5.1

Other ExpensesOther Expenses

+5.1

- 1.7

+4.0

InternationalInternationalPassengerPassenger

+3.8

FYFY1010 11QQOp. IncomeOp. Income

FYFY111 1 11QQOp. IncomeOp. Income1.1

+2.9

- 0.4Other RevenuesOther Revenues

SalesSales--LinkedLinked

・・Landing /Navigation FeesLanding /Navigation Fees・・DepreciationDepreciation・・PersonnelPersonnel・・Contracts, etc.Contracts, etc.

・・Commission, AdvertisementCommission, Advertisement・・InIn--flight service, Ground service, etc.flight service, Ground service, etc.

・・Maintenance/HandlingMaintenance/Handling・・Mileage/Card, etc. Mileage/Card, etc.

・・Depreciation except AircraftDepreciation except Aircraft・・Maintenance, etc.Maintenance, etc.

- 9.2

Decrease in ProfitDecrease in Profit- 10.4

RevenuesRevenues- 0.2

ExpensesExpenses+10.2

©ANA2011 21


1Q/FY10 1Q/FY11 % Y/Y

- 14.78,1649,566Passengers (thousands)

+ 9.916,48215,003Unit Price (¥/Passenger)

+ 10.118.817.1Yield (¥/RPK)

- 4.210.110.5Unit Revenue (¥/ASK)

- 6.2134.5143.5Passenger Revenues (¥ billion)

- 8.0pts53.661.7Load Factor (%)

- 14.97,1498,398Revenue Passenger Km (million)

- 2.113,33113,616Available Seat Km (million)

Domestic Passenger Operations

©ANA2011 22

-40.0%

-35.0%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

JAN FEB MAR APR MAY JUN

Individual/Business

Promotional fare

Package/Leisure

Total

(YoY)

Available Seat Kilometer (ASK)


Trends in Domestic Passenger Operations

1Q Trends in Domestic Passengers

Quarterly Key Topics：

From Apr 1: Revamping reservation and search functions for domestic tours, hotels and car rental on ANA SKY WEB (www.ana.co.jp/domtour/)

May 12: Premium ANA Card lineup launched: Recruitment of ANA JCB Card PREMIUM and ANA JCB Super Flyers Card PREMIUM members commenced

From May 14 to July 10: Weekend Travel Fare only available on Saturday and Sunday

1Q Cumulative Revenue Change Factors

143.5134.5

+13.5▲22.5

《Main Passenger Factor》ASK +2.0 Improved Competitive Posture +1.0Improved Promotional Fare Demand +1.0Connection to International Fit ▲0.5Flight reduction due to Earthquake ▲3.5Demand decline due to Earthquake ▲22.5

《Main Unit Price Factor》・Fares for Business Travel +1.0・Travel/Promotional Fare +3.5・Demand Recovery/Passenger

Class Mix Improvement +9.0

FY10 1QFY10 1Q FY11 1QFY11 1Q

（¥ billion）

Passenger numbers gradually strengthening as weseek to control supply and demand levels

Achieve appropriate levels of revenue through ASKcuts implemented due to the earthquake

©ANA2011 23


1Q/FY10 1Q/FY11 % Y/Y

+ 4.01,2731,224Passengers (thousands)

+ 3.854,38952,412Unit Price (¥/Passenger)

+ 1.112.712.5Yield (¥/RPK)

- 13.78.39.6Unit Revenue (¥/ASK)

+ 8.069.264.1Passenger Revenues (¥ billion)


+ 6.85,4705,121Revenue Passenger Km (million)

+ 25.18,3266,656Available Seat Km (million)

International Passenger Operations

©ANA2011 24

Intentionally Blank

©ANA2011 25

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%


RPK*（Business Class）

RPK（Economy Class）

RPK（Total）

(YoY)

Available Sean Kilometer (ASK)


Trends in International Passenger Operations

1Q Trends in International Passengers1Q Cumulative Revenue Change Factors

64.1

69.2+2.5

+2.5

FYFY1010 1Q1Q FY11 1QFY11 1Q

《Main Passenger Factor》ASK Increase +5.5 Demand Recovery +1.5Demand Stimulation Measures +4.5Demand decline due to Earthquake ▲9.0

《Main Unit Price Factor》Fuel Surcharge +3.0Unit Price/Passenger Mix Improvement +0.5Foreign Exchange ▲1.0

（¥ billion）

Increase revenues by implementing demand stimulationmeasures in addition to the demand recovery

Results bolstered by new routes and steadilyrecovering from the earthquake

*RPK：Revenue Passenger Kilometer

©ANA2011 26

-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%


ANA

Total for all companies*

(YoY)

*Japan National Tourist Organization Data50.0

60.0

70.0

80.0

90.0

100.0


Los Angels

Beijing/Shanghai/Hong Kong

Bangkok/Singapore/Seoul/Taipei

Honolulu

We have been only minimally affected by theslump compared to the entire market

1Q Trends in Passengers Visiting Japan 1Q L/F Trends in Haneda International Routes

Despite the temporary effects of the earthquake, L/F is returning to previously high levels


Trends in International Passenger Operations


Jun1: From June, fuel surcharge revised (e.g. increased from 17,500 yen to 25,000 yen for North America (except for Honolulu) ,Europe and the Middle East

Jun1: ATI (Anti Trust Immunity) application for Japan-Europe services with Lufthansa approved by the MLIT Japan June19: Newly inaugurated regular flight service between Narita and Chengdu route

©ANA2011 27


Domestic Cargo Operations

Domestic Cargo

DomesticFreighter

【Included above】

- 3.822Revenue Ton (thousand tons)

+ 4.710810,3Revenue Ton (thousand tons)

- 14.50.30.4Cargo Revenues (¥ Billion)

+ 4.67.97.5Cargo Revenues (¥ Billion)

+ 5.4pts36.831.4Load Factor (%)

+ 2.4pts25.523.1Load Factor (%)

130

48.1

2

7

73

18.6

108

426

- 11.0

+ 9.7

- 8.5

- 22.0

- 0.1

+ 10.6

+ 4.5

- 5.4

147Unit Price (¥/kg)


2Revenue Ton Km (million)

9Available Ton Km (million)



43.9Unit Revenue (¥/ATK)


1Q/FY10 1Q/FY11 % Y/Y

©ANA2011 28

Intentionally Blank

©ANA2011 29


International Cargo Operations

International Cargo

InternationalFreighter


- 4.06770Revenue Ton (thousand tons)

+ 6.2140132Revenue Ton (thousand tons)





124

41.6

117

201

168

26.6

563

888

+ 19.3

+ 2.9

+ 1.0

+ 11.3

+ 11.2

- 7.1

+ 16.1

+ 27.1









1Q/FY10 1Q/FY11 % Y/Y

©ANA2011 30

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%


Revenue Ton kilometer (RTK)

(YoY)

Available Ton Kilometer (ATK)


Trends in International Cargo Operations


Fuel surcharge revised （e.g. for Europe, North America and the Middle East)April: from 99 yen to 106 yenMay: from 106 yen to 141 yenJun: from 141 yen to 147 yen

Trends in International Cargo1Q Cumulative Revenue Change Factors

Increase revenues by increasing FSC and ATK

20.7

24.4+1.0

+3.0

《Main Weight Factor》ATK Increase +2.5Demand Stimulation Measures +0.5

《Main Unit Price Factor》Fuel Surcharge +3.0Foreign Exchange ▲1.0Price decrease Effects ▲1.5

FY10 1QFY10 1Q FY11 1QFY11 1Q

（¥ billion）

The effects of the earthquake were controlled andgood volume results achieved

©ANA2011 31

Ⅳ. FY2011 Earning Forecast

©ANA2011 32

Intentionally Blank

©ANA2011 33

Consolidated Earning Forecast

(¥ billion)

Consolidated Earnings Forecast

DifferenceFY11（E）FY10 OriginalFY11（E）

《Ref.》 As of 24FEB, 11

45.0- 3.320.023.3Net Income

-

- 1.0

- 1.0

- 3.2

- 0.0pts

+ 2.1

+ 50.1

+ 52.3Operating Revenues 1,357.6 1,410.0 1,500.0

Operating Expenses 1,289.8 1,340.0 1,390.0

Operating Income 67.8 70.0 110.0

Op. Margin (%) 5.0 5.0 7.3

Non-Op. Gains/Losses - 30.7 - 34.0 - 40.0

Recurring Income 37.0 36.0 70.0

Extraordinary Gains/Losses - 1.9 - 3.0 - 1.0

Dividend (¥/Share） 2 2

©ANA2011 34

(％)

0

5

10

15

20

25

30Passenger（Result/Forecast）ASK（Result/Forecast）

(％)

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

2.5

2.4%0.3%▲1.8%▲1.5%▲1.0%YearYear--onon--YearYear

▲0.9%

Jan-Mar (A)

▲0.8%

Apr-Jun (E)

0.7%

Jul-Sep (E)

1.3%

Oct-Dec (E)

1.2%

Jan-Mar (E)

vs. Last Quarter

-20

-15

-10

-5

0

5

10

15

20

Passenger（Result/Forecast）ASK（Result/Forecast）

Impacts of the earthquake will be eliminated by 3Q; Impacts of the earthquake will be eliminated by 3Q; in 4Q, demand will be as per the initial planin 4Q, demand will be as per the initial plan

Domestic ASK and Passengers (Year-on-Year） International ASK and Passengers (Year-on-Year)

Projected Quarterly GDP (Year-on-Year)

【Source】

Japan Center for Economic Research

Quarterly Forecast of Japanese Economy (June 10, 2011)

Apr-Jun Jul-Sep Oct-Dec Jan-MarApr-Jun Jul-Sep Oct-Dec Jan-Mar

Consolidated Earnings Forecast

©ANA2011 35

Earning Forecast by Segment

(¥ billion)

Earning Forecast by Segment

+ 2.1

+ 0.1

- 1.8

+ 3.8

- 2.6

+ 6.4

+ 52.3

+ 7.9

+ 1.0

+ 43.3

- 14.3

+ 57.7Air Transportation 1,218.2 1,276.0 1,360.0

Travel Services 159.3 145.0 174.0Total for Reporting Segments 1,377.6 1,421.0 1,534.0Other 138.9 140.0 134.0

Adjustment - 158.9 - 151.0 - 168.0

Total 1,357.6 1,410.0 1,500.0Air Transportation 60.5 67.0 104.5

Travel Services 2.6 0.0 2.5Total for Reporting Segments 63.1 67.0 107.0Other 4.8 3.0 3.0

Adjustment - 0.1 0.0 0.0

Total 67.8 70.0 110.0

Revenues

Operating

Income

DifferenceFY11（E）FY10 OriginalFY11（E）


©ANA2011 36

Intentionally Blank

©ANA2011 37

Operating Revenues and Expenses

104.5+ 6.467.060.5Operating Income

1,255.5+ 51.21,209.01,157.7Total

995.0+ 35.5937.0901.4Non – Fuel Cost

260.5+ 15.7272.0256.2Fuel and Fuel Tax

1,360.0+ 57.71,276.01,218.2Total

170.0- 4.9155.0159.9Others

136.0+ 9.9135.0125.0Cargo and Mail

342.0+ 46.3327.0280.6International Passengers

712.0+ 6.3659.0652.6Domestic Passengers

FY10 FY11 (E) Difference

OperatingExpenses

OperatingRevenues

Op. Income

(¥ Billion)

OriginalFY11（E）



©ANA2011 38


Operating Income Change

+6.5

CargoCargo& Mail& Mail

Domestic PassengerDomestic Passenger

60.5

+46.5

+10.0

International PassengerInternational Passenger

FY10FY10Op. IncomeOp. Income

67.0

△5.0Others RevenuesOthers Revenues

FY11FY11Op. IncomeOp. Income

(¥ Billion)

Fuel &Fuel &Fuel TaxFuel Tax

+16.0Others ExpensesOthers Expenses

+35.5

ExpensesExpenses+51.5

RevenuesRevenues+58.0

IncreaseIncreasein Profitin Profit

+6.5

©ANA2011 39

《Passenger Operations》 Assumptions for FY11（vs. FY10）

Domestic Passengers International Passengers

1H(E) 2H(E) FY11(E) 1H(E) 2H(E) FY11(E)

55,628(+2.0)

13.0(+1.0)

9.3(-9.0)

71.4(-7.8pts)

+8.5

+9.5

+21.5

57,299(+6.0)

13.2(+8.6)

9.8(+11.5)

74.0(+2.0pts)

+15.6

+12.8

+9.8

56,484(+4.0)

13.1(+4.8)

9.5(+1.1)

72.7(-2.7pts)

+12.0

+11.2

+15.3

17,147(+8.1)

19.3(+7.9)

11.4(-2.8)

59.1(-6.5pts）

-9.5

-9.4

+0.6

16,642(+2.0)

18.8(+1.9)

11.9(+5.2)

63.0(+1.9pts）

+2.2

+2.2

-0.9

16,887(+5.0)

19.0(+4.9)

11.6(+1.1)

61.0(-2.3pts）

-3.9

-3.8

-0.1Available Seat Km

Revenue Passenger Km

Passengers

*Load Factor (%)

**Unit Revenue（¥/ASK）

**Yield（¥/RPK）

**Unit Price（¥/Passenger）

Earnings Forecast Assumptions

* (*.*pts)： Difference** （*.*）：year-on-year basis

©ANA2011 40

Domestic Cargo International Cargo

Freighter


+8.2+9.8+6.5+2.9-1.2+7.2Revenue Ton

73（+2.1）

18.4（+1.8）

25.2

-0.1

-1.0

63.665.062.225.626.0Load Factor (%)

Available Ton km -3.2 -2.1 +22.2 +14.9 +18.4

Revenue Ton km +7.4 +3.6 +11.8 +10.7 +11.2

Unit Revenue(¥/ATK) 18.5（+10.2）

18.4（+5.9）

25.7（-7.6）

26.7（-6.0）

26.2（-6.8）

Unit Price(¥/RT) 71（-0.5）

72（+0.7）

159（+6.0）

156（-1.6）

157（+2.0）

１H(E) 2H(E) FY11(E)１H(E) 2H(E) FY11(E)

《Cargo Operations》 Assumptions for FY11（vs. FY10）

+2.5+6.1-1.3-13.2-18.9-7.1Revenue Ton

45.1（+7.2）

48.4（+10.0）

41.9（+4.7）

46.6（+3.8）

45.9（-2.8）

47.3（+10.4）

Unit Revenue(¥/ATK)

Available Ton km -22.4 -12.8 -17.9 +9.8 -1.7 +3.8

Revenue Ton km -10.4 -23.8 -17.4 +1.3 +4.1 +2.8

Load Factor (%) 35.8 33.2 34.5 58.9 66.2 62.5

Unit Price(¥/RT) 132（-7.8）

138（+4.5）

135（-1.8）

122（+16.5）

124（+2.0）

123（+8.6）

Total

Earnings Forecast Assumptions

©ANA2011 41

(¥ billion)

6.1+ 0.0pts3.83.7Operating Return on Assets (%)

1.7+ 0.01.81.8Debt/Equity Ratio (times) *

908.0+ 44.1983.0938.8Interest Bearing Debts *

3.8

26.9

535.0

1,992.0

- 0.9pts

- 0.1pts

+ 14.7

+ 63.9

8.74.7Return on Equity (%)

28.927.0Ratio of Shareholders‘ Equity (%)

542.0520.2Shareholders' Equity

1,876.01,928.0Assets

Mar 31, 2011 Difference

Consolidated Balance Sheet (Plan)

Consolidated Balance Sheet

Mar 31, 2012(E)

* Off-balanced lease obligation (D/E ratio)As of March, 2011, 170.2 Billion(2.1 times)As of March, 2012(Estimate), ¥155.0 Billion（2.1times）

OriginalFY11（E）


©ANA2011 42

+ 48.0

- 22.9

+ 14.4

+ 18.3

- 37.3

+ 1.6

+ 8.6

- 3.3

24.0

19.0

- 161.0

- 198.0

180.0

15.0

127.0

20.0

-32.0- 24.0Cash Flow from Financing Activities **

30.041.9Free Cash Flow

- 193.0- 175.4Cash Flow from Investing Activities **

- 227.0- 216.3Capital Expenditures

223.0217.3Cash Flow from Operating Activities *

15.013.4Principal Payment for Aircraft Lease

129.0118.4Depreciation and Amortization

45.023.3Net Income

(¥ billion)

14.0

197.0

13.7

186.2

15.9+ 0.3ptsEBITDA Margin(％）

239.0+ 10.7EBITDA

* Cash flow from operating activities and cash flow from financing activities in this table include off-balanced lease principle refund equivalent.

** Cash flow from investing activities in this table do not include deposit equivalents for certificates of deposit.

FY10 FY11(E) Difference

Consolidated Cash Flows (Plan)

Consolidated Cash Flows

OriginalFY11（E）


©ANA2011 43

Ⅴ. Supplemental Reference

©ANA2011 44

燃油・為替

Fuel Price and Exchange Rate

125Kerosene (USD/BBL)

80Exchange Rate (JPY/USD)

105Dubai Crude Oil (USD/BBL)

FY11(E)

10%

5%

60%

60%Fuel Hedge Ratio 30% 5% -

Currency Hedge Ratio (USD) 40% 20% 5%

Market Index and Assumptions

Hedging Ratio （as of Jun, 2011）

1 USD change per barrel 2.0 billion / year

1 JPY change per USD 2.3 billion / year

Non hedged impact of oil price and currency fluctuations on fuel expense

Supplemental Reference

FY11 FY12 FY13 FY14 FY15

0

20

40

60

80

100Fuel

Currency

©ANA2011 45


1Q/FY11Composition Difference

5.4

20.7

21.4

20.1

32.5

5.1

20.8

22.8

19.7

31.5

2.9

18.8

29.3

19.4

29.6

+ 3.722.5Asia

+ 0.7 6.1Resort

+ 4.725.4Asia

- 3.717.6China

+ 0.320.3Europe

- 2.030.6North America

+ 0.85.9Resort

+ 5.125.9Asia

- 4.718.2China

+ 0.520.2 Europe


+ 1.04.0Resort

- 2.326.9China

+ 0.219.6Europe


PassengerRevenue

ASK

RPK

International Passenger Results by Destination1Q/FY10

Composition

©ANA2011 46


1Q/FY11Composition Difference

7.4

16.3

18.7

20.2

37.4

7.5

18.3

22.0

16.8

35.3

7.1

17.7

37.0

13.9

24.3

+ 2.820.5Asia

- 3.1 4.3Others

- 0.515.8Asia

- 2.216.5China

+ 5.826.1Europe

+ 0.037.4North America

- 3.24.3Others

+ 2.320.6Asia

- 2.519.6China

+ 6.022.8 Europe


- 2.84.3Others

- 2.934.1China

+ 3.617.4Europe


CargoRevenue

ATK

RTK

International Cargo Results by Destination1Q/FY10

Composition

©ANA2011 47


JUN,2011 Change Owned Leased

Wide-Body

Mid-Body

Narrow-Body

Regional

Mar,2011

70154+ 2224222

41-55Bombardier DHC-8-300 (Q300)

133+ 11615Bombardier DHC-8-400 (Q400)

89-1717Boeing 737-500

412-1616Boeing 737-700

02-22Boeing 737-700ER

116+ 21715Boeing737-800

815-2323Airbus A320-200 (Domestic)

50-55Airbus A320-200 (International)

07-77Boeing 767-300BCF

30-33Boeing 767-300F

032-3232Boeing 767-300

166-2222Boeing 767-300ER

214-1616Boeing 777-200

34-77Boeing 777-200ER

07-77Boeing 777-300

316-1919Boeing 777-300ER

010-1010Boeing 747-400 (Domestic)

00- 101Boeing 747-400 (International)

Total

Aircraft in Service

Note: As of Jun 30, 2011, excluding leased aircraft outside Group (11 as of end of FY11 1st Quarter, 11 as of end of prior fiscal year)

©ANA2011 48

Forward-Looking Statements. This material contains forward-looking statements based onANA’s current plans, estimates, strategies, assumptions and beliefs. These statementsrepresent the judgments and hypotheses of the Company’s management based on currentlyavailable information. Air transportation, the Company’s core business, involves government-mandated costs that are beyond the Company’s control, such as airport utilization fees and Fuel taxes. In additions, conditions in the markets served by the Company are subject to significant fluctuations.

It is possible that these conditions will change dramatically due to a number of factors, suchas trends in the economic environment, fuel prices, technologies, demand, competition, foreignexchange rate fluctuations, and others. Due to these risks and uncertainties, it is possible thatthe Company’s future performance will differ significantly from the contents of this material.

Accordingly, there is no assurance that the forward-looking statements in this material willprove to be accurate.

Cautionary Statement

©ANA2011 49

ANA Group Corporate Philosophy

－ Our Commitments －

On a foundation of security and reliability,

the ANA Group will:

Create attractive surroundings for customers

Continue to be a familiar presence

Offer dreams and experiences to people around the world

安全は経営の基盤であり社会への責務である。

私たちはお互いの理解と信頼の

確かなしくみで安全を高めていきます

私たちは一人ひとりの責任ある

誠実な行動により安全を追求します

ANA Group Safety PrinciplesANA Group Safety Principles

Number one in quality

Number one in customer satisfaction

Number one in value creation

Number one in quality

Number one in customer satisfaction

Number one in value creation

With air transportation as its core field of business, the ANA Group aims to be one of the leading corporate groups in Asia, providing passenger and cargo transportation around the world.

With air transportation as its core field of business, the ANA Group aims to be one of the leading corporate groups in Asia, providing passenger and cargo transportation around the world.

ANA Group Corporate Vision

ANA Group Corporate Philosophy

Being the leader in Asia means that we will become

Safety is our promise to the public and is the foundation of our business.

Safety is assured by an integrated management system and mutual respect.

Safety is enhanced through individual performance and dedication

©ANA2011 50

Thank you.

This material is available on our website.http://www.ana.co.jp

Investor Relations Financial Information Presentations

Investor Relations, All Nippon Airways Co., Ltd.Phone +81-(0)3-6735-1030 E-Mail: [email protected]

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