FY2014-16 ANA Group Corporate Strategy

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Revenues/Profit Plan

The ANA Group looks to swiftly return operating income to the ¥100.0 billion level and enhance top-line profit expansion.

In the fiscal year 2013, revenue increased but income declined. This caused a pause in operating income reaching record highs as in the past two fiscal years. However, full year earnings results ultimately exceeded the forecasts revised at the second quarter announcement.
From the fiscal year 2014, the ANA Group plans to expand International Passenger Operations through business opportunities while renewing our efforts to deepen cost restructuring so that top-line growth will solidly link to earnings.
Operating income targets in the current Corporate Strategy start with ¥85.0 billion for the fiscal year 2014, increasing to ¥110.0 billion for the following year and ¥130.0 billion for the fiscal year 2016. While the current Corporate Strategy is in effect, we aim to accomplish record high income again. We believe these goals represent the income levels necessary for obtaining sufficient free cash flow for sustainable growth as a group and meeting the stock market’s anticipation.

Capital Expenditure/Cash Flow Plan

Continue to invest in medium- to long-term growth while securing free cash flow and maintaining financial health.

As of the end of March 2014, the ANA Group decided to procure 70 aircraft with delivery spanning through to the fiscal year 2027. While this large investment in medium-term growth is of unprecedented scale, plans allow for capital expenditures to be evened out each fiscal year along with existing investment plans, as well as for free cash flow to be secured. The ANA Group intends to acquire the necessary capital for this expenditure basically by steadily posting operating cash flow and lending from banks to while keeping the appropriate financial leverage. As for strategic investments aiming to expand and diversify revenue domains, the ANA Group is ready to utilize the funds of increased capital through a public offering in 2012 so that we can take action flexibly by proper management decisions without missing any business opportunities.

Financial Indicators and Dividend Policies

Regarding financial indicators “medium-term value creation goals, Ewe aim for operating income of ¥150.0 billion or above, ROA of 8% or above, and ROE of 10% or above.

The ANA Group has been working to achieve its mediumterm value creation goals of operating income of ¥150.0 billion or above, ROA of 8% or above, and ROE of 10% or above. Although the ANA Group will still not be able to meet these medium-term goals with income levels for the fiscal year 2016 set out in our current Corporate Strategy, owing to factors such as soaring fuel expenses caused by yen depreciation, we can expect to put our goals broadly in sight. In addition, we have successfully forged financial footing enabling our future growth strategy while maintaining a stable balance sheet, thanks to the public offering in 2012 and subsequent steady income. Pursuing sustainable growth and increasing corporate value will better position us to further enhance shareholder returns, which the group regards as a top priority for management.