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ANA HOLDINGS Financial Results for the Nine Months ended December 31, 2015

TOKYO, January 29, 2016 - ANA HOLDINGS (hereafter “ANA HD”) today reports its consolidate financial results for the nine months ended December 31, 2015.
ANA HD has delivered record operating revenues of ¥1,369.0 billion, an uplift in operating income, to ¥116.7 billion, and ordinary income, to ¥112.1 billion, during the period. Net income attributable to owners of ANA HD also rose to ¥73.3 billion, up 40%.
As a consequence of this strong performance, ANA HD is revising up its consolidated financial forecast for FY 2015. ANA HD now expects to achieve record operating income of ¥125.0 billion, ordinary income of ¥110.0 billion and net income attributable to owners of ANA HD of ¥65.0 billion for FY 2015, higher than previous forecast.

Overview
・ ANA recorded increased sales revenue compared with the same period the prior year, principally due to the continued rise in international passenger services. This has been driven by network expansion, boosting the company’s competitive position, ANA has captured demand for in-bound, out-bound and transits between North America and Asia. ANA has worked to reduce operating expenses whilst expanding the business, resulting in increased operating income, ordinary income and quarterly net income attributable to owners of ANA HD.
・ ANA continues to expand and improve its international route network, launching services to four new cities during the period ; Houston, Kuala Lumpur, Brussels, and Sydney. Its dual-hub airport strategy, operating flights out of both Narita and Haneda airport in Tokyo, also continues to make good progress, as the company strengthens the position of each airport as international hubs.
・ In order to continue building its global brand, ANA began the Star Wars project with the launch of two special livery planes decorated with Star Wars characters. These planes started operation on both international and domestic routes from October.

Air Transportation

1. Domestic Passenger Services
・ Although passenger numbers fell compared to the same period in the prior year due to increased competition from the Shinkansen bullet train's new Hokuriku route as well as typhoon-related flight cancellations, revenue increased over the same period of the prior year due to initiatives to raise profitability such as flexible pricing management in accordance with market demand.
・ In response to this competition, ANA worked to achieve the optimum supply-demand balance by introducing smaller aircraft to improve passenger load factor.
・ ANA increased the frequency of flights between Haneda and Kansai.
・ ANA continues to capture in-bound tourist demand through the launch of the "ANA Discover JAPAN Fare", a new fare available at overseas travel agents.
・ ANA continues to strive for world-leading customer service and has introduced Japan’s first-ever self-service baggage drop system,"ANA Baggage Drop Services", and introduced new automatic check-in machines with displays in five different languages. As of December 2015, these new services are available at 46 domestic airports including Haneda.

As a result of the above, domestic passenger revenues rose by ¥5.6 billion (up 1.1% year-on-year).
2. International Passenger Services
・ Overall, passenger numbers and revenue exceeded the same period of the prior year as business demand on flights to North America remains solid and ANA actively captured strong demand for travel to Japan from all regions. Demand on certain European routes showed some reduction following the terrorist attacks in Paris in November.
・ In addition to opening new routes between Narita and Houston and Kuala Lumpur, a new route between Narita and Brussels opened in October with a further new route between Haneda and Sydney starting operations in December. Following a negotiated agreement between the governments of Japan and China, ANA began new route on Haneda-Guangzhou from October, and introduced more flights on Haneda-Beijing and Haneda-Shanghai routes.
・ Introducing the new aircraft on Haneda-Los Angeles route in October, now all routes between Japan and the US mainland have been equipped with full-flat seats in business class, improving comfort as well as ANA's competitive position.

As a result of the above, international passenger revenues rose by ¥37.1 billion (up 10.5% year-on-year).
3. Cargo
・ Although ANA worked to strengthen its sales organization through the introduction of a new reservation system to improve space utilization, as a result of factors including low volumes of cargo transferred from international to domestic fights due to the yen depreciation, domestic cargo volume and revenue fell year-on-year.
・ In international cargo business, ANA has made a number of service enhancements. Dedicated freighter flights were introduced on Narita-Xiamen-Okinawa and Narita-Qingdao-Okinawa routes from October onwards. The belly capacity of passenger aircraft was also utilized and the Okinawa cargo hub was used to capture demand on intra-Asia trilateral market as well as demand for express delivery. However, demand for cargo departing from overseas airports to Japan has not been increased due to the yen depreciation, resulting in a fall in cargo volume and revenue year-on-year.

As a result of the above, domestic cargo service revenues fell by ¥0.7 billion (down 3.1% year-on-year) and international cargo service revenues fell by ¥5.4 billion (down 5.8% year-on-year).
4. Other
・ Other revenue from the Air Transportation business, which includes ANA's mileage program, Vanilla Air, in-flight sales and maintenance services for other airlines, was ¥143.3 billion (up 18.8% year-on-year).
・ Vanilla Air increased the number of flights on the Narita-Taipei route from October onwards, and worked to capture demand for travel to Japan through stronger advertising campaigns for overseas markets as well as the launch of a Chinese language reservation center in Taiwan. During the third-quarter, Vanilla Air carried 1,297 thousand passengers (up 57.9% year-on-year), achieving a passenger load factor of 85.7%(up 8.8 points year-on-year).
Airline Related, Travel Services, Trade and Retail and Others
・ In Airline Related businesses, operating revenue was ¥173.0 billion (up 1.5% year-on-year) due to increased contracts for ground operations from other airlines at Haneda and Osaka (Kansai) Airports. However an operating loss of ¥3.8 billion was recorded on the complete amortization during the period in goodwill recorded following the acquisition of the pilot training company Pan Am Holdings, Inc., now a consolidated subsidiary of ANA HD.
・ In Domestic Travel Services, operating revenue was up year-on-year due to increased sales, principally for travel to Okinawa and Hokkaido. In Overseas Travel Services, operating revenue fell year-on-year due to decreased sales resulting from the yen depreciation and the impact of terrorist incidents in Europe. However, sales for travel to Japan exceeded the prior year due to the capture of strong inbound demand from Taiwan and China. As a result, operating revenue was ¥129.3 billion (down 1.0% year-on-year), while operating income was ¥4.2 billion (down 4.7% year-on-year).
・ In Trade and Retail, operating revenue was ¥108.4 billion (up 14.2% year-on-year) and operating income was ¥4.4 billion (up 35.9% year-on-year) due to solid sales in the retail business, food business and the aviation and electronics business.
・ In other, building maintenance contributed a solid performance, but business expenses increased resulting in operating revenue of ¥24.5 billion (up 4.3% year-on-year) and operating income of ¥1.1 billion (down 11.8% year-on-year).
Outlook for FY2015 (April 2015 - March 2016)
As a consequence of strong performance, ANA HD is revising up its consolidated financial forecast for FY 2015 from original forecast announced on April 30, 2015, as below.

Contact:Corporate Communications, ANA HOLDINGS,+81-3-6735-1111,publicrelations@ana.co.jp

About ANA HOLDINGS INC.
ANA HOLDINGS is an aviation group with global operations and a total of 62 consolidated subsidiaries and 18 equity method affiliates. It is divided into passengers and cargo services segments as well as airline related business such as Catering and IT Services. ANA HD formed in April 2013 and is the parent company of ANA; full service carrier and Vanilla Air; LCC. ANA HD promotes a multi-brand strategy to leverage the strength of ANA brand and stimulate demand in markets not completely covered by its full-service airline offering, while expanding market share for the Group as a whole, leading to enhanced value. ANA has about 240 aircraft flying to 81 destinations and carrying about 47 million passengers. ANA is the largest airline in Japan by revenues and passenger numbers. ANA is a member of Star Alliance. Management vision of ANA HD is “It is our goal to be the world’s leading airline group in customer satisfaction and value creation.”

ANA HOLDINGS Financial Results for the Nine Months ended December 31, 2015