As of Mar. 2015

Market Environment

Eyeing the Tokyo 2020 Olympic and Paralympic Games, the Japanese government aims to increase the inbound visitors to Japan to 30 million by 2030. Additional slots at Tokyo metropolitan airports and improvevement in airport acsess are expected to capture the increasing demand. Although the labor force and productivity is shrinking in Japan caused by the falling birth rate and the aging population, the continuing rapid pace of Asian economic growth and deregulation of airline industry in ASEAN market will provide tailwinds to airline industry in Japan and Asia and it will expect to lead expansion of the business for the ANA Group.

Explanation of assumed environment. On Macro Environment, FY2014-2016 and beginning of FY2017, there will be Growth of Asian market / Development of FTA and EPA. On FY 2017 and beyond, there will be Tokyo Olympics & Paralympics. On Inbound Demand, Increase of foreign visitors after CY 2017. CY 2014 result: 13.4 million, CY 2020 target: 20.0 million, CY 2030 target: 30.0 million. On Airline Business, FY 2017 and beyond there will be Matured domestic market / Growth in international demand and New entry and frequency increase of foreign airlines / New entry and expansion of domestic & foreign LCCs. On Metropolitan Airports / slot, FY 2014-2016, there will be +40 Flights / day at Haneda (Daytime for int'l op.) and +Flights / day at Narita. There will be Possibility of additional expansion and improvement of airport access.

Corporate Strategy

To tie these growth opportunities to make actual profit, the ANA Group will aim to become a truly tough airline group which is resistance to any environmental changes and build a foundation for group management which encourage sustainable growth.

Our Business Portfolio Strategy: Enhancement and Development of Revenue Platforms - On ANA brand, our earning base, we will enhance revenue platforms of the group by centering on the development of international business and improve earnings power of existing business segments. Expansion and Diversification of Revenue Domains - Each group business segment will aim to maximize and diversify the profitability for stable group management and become resilient to any environmental changes by expanding non-air business etc. Our Cost Restructuring Initiatives: Brand New Cost Restructuring Initiatives - We will shift to an appropriate cost cognizant of market competitiveness, expand our concentrated purchasing scope etc. and interweave such efforts from a multitude of angles which the entire group will strive to meet its goals.

Profit Plan (Fillings on January 30, 2015)

We will carry out the operating income plan of 85.0 billion yen in FY2014 and ouline the vision for 200.0 billion yen in FY2025 including the favorable effect of the upcoming Tokyo Olympic Games in 2020. We will maintain healthy financial condition and stable profitability to ensure shareholder's returns while developing resilience to environmantal changes.

FY 2014 Forecast: Operating Income 85.0 Billion Yen, EPS 10 Yen. FY 2015 Plan: Operating Income 110.0 Billion Yen. FY 2016 Plan: Operating Income 130.0 Billion Yen. FY 2025 Vision (Target to be pursued): Operating Income 200.0 Billion Yen, EPS 20Yen.