ANA HOLDINGS Financial Results for the Six Months
ended September 30, 2015

TOKYO, October 28, 2015-ANA HOLDINGS (hereafter “ANA HD”) today reports its consolidated financial results for the Six Months ended September 30, 2015.

・Operating revenues increased by 6.6% to ¥911.2 billion supported by expansion in international flight network and continued economic recovery. Tight control of costs and improved efficiency drive in operating income to ¥86.7 billion. Net income attributable to owners of ANA HD 50.9% higher at ¥53.9 billion.
・Despite downside risks to the economy in overseas markets, the Japanese economy continued to recover gradually, with signs of a rebound in capital investment and personal consumption. In addition, the outlook for the Japanese economy is continued to recover gradually due to factors including the positive impact of various government policies.
・During fiscal 2014, ANA expanded its international network at Haneda (Tokyo) and strengthened connectivity between its domestic and international flights. In the current fiscal year ANA is working to bolster the international network at Narita, strengthening its position as an international hub, based on our dual-hub strategy in the Tokyo metropolitan area airports.
・Star Wars initiative and launch of special livery aircraft help raise ANA’s global profile.

ANA HD today reports operating revenue of ¥911.2 billion, operating income of ¥86.7 billion, ordinary income of ¥82.9 billion and net income attributable to owners of ANA HD of ¥53.9 billion for the first half of FY2015.

Air Transportation

1. Domestic Passenger Services
・Although passenger numbers fell compared to the same period in the prior year due to the increased competition from the Shinkansen bullet train as they started operation of the Hokuriku route and typhoon-related flight cancellations, revenue increased due to initiatives such as flexible pricing management and initiatives to meet market demand.
・ANA increased flights departing Chubu(Nagoya) and Fukuoka for Okinawa and connecting flights from Okinawa to further islands; Ishigaki and Miyako.
・ANA worked to improve customer service and introduced Japan’s first-ever self-service baggage drop system,“ANA Baggage Drop Services", at Haneda Airport from July.

As a result of the above, domestic passenger revenues rose by ¥7.4 billion (up 2.1% year-on-year) to ¥353.2 billion.
2. International Passenger Services
・Both passenger numbers and revenue exceeded the same period in the prior year as ANA actively captured very strong demand for travel to Japan from all regions as well as strong business demand.
・In addition to the launch of new Narita-Houston in June and Narita-Kuala Lumpur in September, ANA also worked to improve convenience for passengers transiting through Japan on routes connecting North America and Asian destinations by increasing the frequency of flights departing Narita for Singapore and Bangkok from June onwards. Frequencies were also increased on the Narita-Honolulu route from July in an effort to capture demand.
・ANA has also responded to the growing need, principally among overseas passengers, for halal-certified meals by expanding halal-certified in-flight options on certain routes from July.

As a result, revenue from international passenger services increased by ¥23.9 billion (up 10.1% year-on-year) to ¥259.6 billion.
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 such as low volumes of transfer cargoes from international to domestic due to the yen depreciation, domestic cargo volume and revenue both fell year-on-year.
・In the international cargo business, ANA captured the demand for transport of goods such as automobile components from Asian cities to North America via Japan. ANA also leveraged the Okinawa cargo hub to win contracts for express cargo. From August, all routes between Europe and Japan became the scope of the joint venture with Lufthansa Cargo AG. However, despite these efforts, both cargo volumes and revenue fell year-on-year due to the declined demand from Europe and North America to Japan following the yen depreciation.

As a result, revenue from domestic cargo services fell by ¥0.5 billion (down 3.7% year-on-year), and revenue from international cargo services fell by ¥1.4 billion (down 2.4% year-on-year).
4. Others
・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 ¥96.1 billion (up 19.9% year-on-year).
・Vanilla Air improved passenger convenience and captured demand through advertising campaigns for overseas markets, moving up the ticket sales date, and expanding its network of travel agents. During the first half, Vanilla Air carried 896 thousand passengers (up 57.2% year-on-year), achieving a passenger load factor of 86.7%(up 12.0 points year-on-year).
Airline Related, Travel Services, Trade and Retail and Others
・In Airline Related businesses, operating revenue for the first half was ¥114.4 billion (up 5.1% year-on-year) due to an increased contracts for ground operations from other airlines at Haneda and Osaka(Kansai) Airports, however operating income was ¥4.2 billion (down 18.6% year-on-year).
・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, although the demand for travel to Japan increased year-on-year, operating revenue fell year-on-year due to decreased sales resulting from the yen depreciation and the impact of terrorist incidents in Europe. As a result, operating revenue was ¥88.4 billion (down 0.6% year-on-year), while operating income was ¥2.8 billion (up 1.3% year-on-year).
・In Trade and Retail, operating revenue was ¥71.5 billion (up 16.8% year-on-year) and the operating income was ¥3.0 billion (up 66.0% year-on-year) due to solid sales in the retail business, the food and the aviation and electronics businesses.
・In Others, building maintenance contributed a solid performance, resulting in operating revenue of ¥16.1 billion (up 3.9% year-on-year) and operating income of ¥0.6 billion (down 9.3% year-on-year).
Outlook for FY2015 (April 2015 - March 2016)
・ANA HD continues to implement its ‘FY2014-2016 Mid-term Corporate Strategy’, with the aim of becoming "the world's leading airline group in customer satisfaction and value creation" by building an optimum business portfolio and achieving further cost restructuring to maximize profitability.
・The full-service carrier business is at the core of ANA HD’s profitability, and ANA will work to maintain profitability by achieving a better supply-demand balance on domestic routes while also expanding its international network and continuing to develop its Tokyo dual-hub airport strategy in order to capture growing global travel demand.

There is no change to the consolidated financial forecast for FY2015, as announced on April 30, 2015.

Contact:Corporate Communications, ANA HOLDINGS,+81-3-6735-1111

ANA HOLDINGS is an aviation group with global operations and a total of 63 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 88 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 Six Months ended September 30, 2015