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ANA Group Corporate Strategy for FY2013-15

TOKYO April 30, 2013 - ANA Group, Japan’s largest airline group, today sets out its corporate strategy for FY2013-15. Despite the challenging global economic backdrop, ANA Group has a clear strategic plan to position the Company for growth. The strategic plan focuses on the following elements:

• Build upon the company’s new corporate structure and enhanced management team • Pursue a multi-brand approach; expanding the portfolio to include ancillary airline services • Target expansion in high growth markets, including Asia • Continue to differentiate ANA Group as the Leading Global Airline Group

Market conditions Due to Airline liberalization and deregulation, which has opened up markets in the airline industry, we are seeing intense competition, not only from existing Japanese airlines, but also from major airlines from Asia, Europe, US and Middle East, and from the full-scale entry of low-cost carriers to the market. We anticipate that this trend will continue as liberalization and deregulation continue at a rapid pace. In addition to this, slot expansion in Tokyo and increasing competition from other modes of transportation, such as the extension of the Shinkansen bullet trains, have intensified competition further. ANA Group Strategy 2012-2013 In response to these challenges, and as the company entered its 60th anniversary year, ANA Group has already undertaken a number of reforms, as set out in the ANA Group Corporate Strategy for FY2012-13. These include management reforms, the establishment of a multi-brand strategy to expand the portfolio to include ancillary airline services, and changes to the Group’s corporate structure to strengthen cost competitiveness and the Group’s financial position.

2013-2015

Building on these changes, ANA Group’s FY2013-15 Corporate Strategy is designed to position the Group as a best in class airline operator, leading the Japanese market. The strategy includes capitalizing on the new corporate structure and continuing to strengthen the management team. In addition, ANA is pursuing growth by capitalizing on the expansion of airport slots in the Tokyo area and seeking profit diversification through expansion into new business areas which demand our specialist expertise and strategic investment in Asia.

ANA HOLDINGS NEWS

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Outline of the FY2013-2015 Mid-term Corporate Strategy

Expansion of Growth Areas

Alongside ANA Group’s core portfolio, the Company will pursue revenue growth through a multi-brand strategy; expanding into ancillary airline services, and by strengthening its operations in both international and domestic markets. In particular, the Group is looking to capture growth in the Asian market and increase its exposure to non-airline operations, including cargo.

Diagram of Business Expansion through Expansion of Growth Areas

Narita + 20,000(270,000）

Narita + 30,000(300,000 ）

Haneda + 30,000(60,000 during daytime）

Expansion of Japanese LCCs, and entry of foreign LCCsExpansion of Japanese LCCs, and entry of foreign LCCs

Intensified competition with Bullet trains, etc.

Intensified competition with Bullet trains, etc.Intensified competition with

Japanese airlinesIntensified competition with

Japanese airlines

Relationships with neighboring countries


Market fluctuations of oil prices and exchange rates


FY2012FY2012

Advancement of trade liberalizationAdvancement of trade liberalization

Formation of Corporate Strategy

Creation of basis Creation of basis for growth strategyfor growth strategy

Strengthening of Strengthening of financial statusfinancial status

《FY2013-15 Corporate Strategy》

Continued implementation along axis included in FY2012-13 Corporate Strategy

PublicPublic Capital Capital increase increase through a through a public offering public offering in July 2012in July 2012

Toward furtherToward furthergrowth areasgrowth areas

Entry into new business areas utilizing business characteristics and know-howProvision and expansion of existing services outside thegroupExecution of strategic investment in Asia

Transition to holding company (April 2013)Transition to holding companyTransition to holding company (April 2013)

Multi-brand strategy （March 2012: Peach / August 2012: AirAsia Japan)MultiMulti--brand strategy brand strategy （March 2012: Peach / August 2012: AirAsia Japan)

Restructuring of costs / Reduction of costs by ¥100 billion (FY2011-14）Restructuring of costsRestructuring of costs / Reduction of costs by / Reduction of costs by ¥¥100 billion 100 billion (FY2011-14）

FY2013FY2013 FY2014FY2014 FY2015FY2015

Business environment

*Number of international slots

Narita + 20,000(270,000）

Narita + 30,000(300,000 ）






Japanese airlines





FY2012FY2012













FY2013FY2013 FY2014FY2014 FY2015FY2015


Narita + 20,000(270,000）

Narita + 30,000(300,000 ）






Japanese airlines





FY2012FY2012













FY2013FY2013 FY2014FY2014 FY2015FY2015


*Number of international slots

DomesticPassengerServices

InternationalPassengerServices

CargoLCC

Others

Multi-brand strategy



InternationalPassengerServices Diversification

LCC Cargo

[FY2012-2013 Corporate Strategy]


● Capturing Asian market● Acquisition of growth areas● Investment in diversified

businesses

Expansion of earnings of entire group

Growth of seat-km for international flights

（vs. FY2011 performance）

100.0％

110.6％

125.9％

FY2011 FY2012 FY2013

*dotted circle is a mid-term image

*includes AirAsia Japan



CargoLCC

Others





LCC Cargo




businesses




100.0％

110.6％

125.9％

FY2011 FY2012 FY2013




CargoLCC

Others





LCC Cargo




businesses




100.0％

110.6％

125.9％

FY2011 FY2012 FY2013


*includes AirAsia Japan

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(1) International passenger business With slot expansion in Tokyo, ANA will expand its network for international routes departing/arriving from the Tokyo area. It will also incorporate non-Japanese demand traveling both into and through Japan in addition to existing Japan-based business demand.

(2) Domestic passenger business ANA will continue to differentiate its products & services on its domestic flights in order to

ensure the strength of its core business. (3) Low-cost sector

ANA Group will continue to develop a profitable, low-cost business model for its LCC business, by improving the level of brand recognition, capturing Asian market demand, and pursuing a low-cost operating model.

(4) Cargo ANA aims to drive profitability in its cargo business through a series of measures. It will improve

aircraft utilization rates to reduce costs, expand its cargo network by increasing the number of freighters, and carry more freight on ANA’s passenger aircraft and flights made by other carriers. ANA will also introduce a business management system to develop business solution for the

cargo business. (5) Diversifying into Ancillary Airline Service

ANA plans to diversify into other aviation related businesses, in particular in the growth areas of Asia, as well as looking for opportunities for the ANA brand in the airline sector.

Strategic Investment ・ Use funds obtained through 2012 public stock offering to invest overseas, to make strategic

investments abroad, in particular in Asia, where high economic growth is anticipated. Consider plans to establish an investment management company in Singapore, in June, to

accelerate implementation of investment. ・ Invest in Asia to capture growth in that region, with additional synergy benefits to ANA

Group‘s airline business. ・ Diversify into other aviation related businesses, such as aircraft maintenance, utilizing the

company’s experience, knowledge, resource and brand value, to expand new profit areas.

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Strengthening the Management Base

Building on progress from the FY2012-2013 corporate strategy, ANA Group will continue to:

(1) Reform Group Corporate Structure ANA Group will move to a Holding Company structure from this fiscal year in order to achieve the separation of management and execution, fair and equitable group management, and delegation of authority and responsibility to individual group companies. Consolidation of shared back office functions will take place in order to improve efficiency, and some activities may be outsourced.

(2) Reform Cost Structure

The company is in line to reduce costs by 100 billion yen by fiscal year 2014 (ca. unit cost 1.0 yen). ANA Group also plans to review its pension program and the mid-to-long-term cost impact.

Public stock offering(Implemented in July 2012)


Stable cash flow(Highest operating income on record for 2 consecutive years


Diversification of earnings areas through strategic investment

Expansion of growth areas aimed at further expansion of profits

Investment in the airline business centered on Asia

Establishment of an investment companyDate of establishment: June 2013 (scheduled)Location of establishment: SingaporePurpose of establishment: acceleration of investment, stabilization of management

Establishment of an investment companyEstablishment of an investment companyDate of establishment: June 2013 (scheduled)Location of establishment: SingaporePurpose of establishment: acceleration of investment, stabilization of management

Mutualsynergies

Maximization of earnings of the ANA Group through business portfolio management

Enabling balancing of strengthening of financial position and strategic investment


Participation in airline-related businesses in Japan and Asia

FY2013: Formulation of specific implementation plansFY2014: Expansion of business in phases

Aiming to utilize ANA Group knowledge and personnel



Strategic Investment in Asia Entering Execution Phase





Diversification of earnings areas through strategic investment

Expansion of growth areas aimed at further expansion of profits

Investment in the airline business centered on Asia

Establishment of an investment companyDate of establishment: June 2013 (scheduled)Location of establishment: SingaporePurpose of establishment: acceleration of investment, stabilization of management

Establishment of an investment companyEstablishment of an investment companyDate of establishment: June 2013 (scheduled)Location of establishment: SingaporePurpose of establishment: acceleration of investment, stabilization of management

Mutualsynergies

Maximization of earnings of the ANA Group through business portfolio management



Participation in airline-related businesses in Japan and Asia





Strategic Investment in Asia Entering Execution Phase

Country Country ＡＡ

Company ACompany A

Country BCountry B

Company BCompany B

Country CCountry C

Company CCompany C

Company DCompany D

SingaporeSingapore

ANA HoldingsANA Holdings

Format of Investment Company (Image)

SPC1SPC1 SPC2SPC2

Investment Investment CompanyCompany

SPC: Special Purpose Company

SPC3SPC3

Merging Merging CompanyCompany

(SPC3)(SPC3)Country Country ＡＡ

Company ACompany A

Country BCountry B

Company BCompany B

Country CCountry C

Company CCompany C

Company DCompany D

SingaporeSingapore

ANA HoldingsANA Holdings

Format of Investment Company (Image)

SPC1SPC1 SPC2SPC2

Investment Investment CompanyCompany

SPC: Special Purpose Company

SPC3SPC3

Merging Merging CompanyCompany

(SPC3)(SPC3)

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Progress on Cost Structure Reform

ANA Group Goals Following the creation of the holding company and its 60th anniversary last year, ANA Group will

benefit from the strategic oversight provided by the strengthened management team. ANA Group has formulated a new group mission statement, management vision, policy on corporate social responsibility, and group action guideline - The ANA’s Way. Overview of the Mission Statement and Management Vision

(1) New Group Mission Statement The ANA Group Mission Statement represents the corporate group’s long-term goals, mission, and purpose. Security and trust are the basic defining responsibilities across the Group. Through these values ANA Group will differentiate itself as the Leading Global Airline Group.

■ Production volume(domestic seat km + international

seat km)(Initial FY2011 plan: 100)10.83

Unit Cost(Initial FY2011

plan: 100

10.56

FY2011(Initial plan)

FY2011(Actual)

FY2012(Actual)

FY2013(Plan)

FY2014

Unit cost▲1-yen reduction plan

(Cost down by ¥ 100 billion)

Unit costUnit cost▲▲11--yen reduction planyen reduction plan

(Cost down by (Cost down by ¥¥ 100 billion)100 billion)

FY2015

FY2013-2015Corporate strategy

▲ ¥¥ 11.0B ▲ ¥¥ 221.0B ▲ ¥¥ 25.0B ▲ ¥¥ 43.0B

Referencepoint

Referencepoint

100.1％

106.7％

▲1.00

115.4％

10.xx

■ Production volume(domestic seat km + international

seat km)(Initial FY2011 plan: 100)10.83

Unit Cost(Initial FY2011

plan: 100

10.56

FY2011(Initial plan)

FY2011(Actual)

FY2012(Actual)

FY2013(Plan)

FY2014

Unit cost▲1-yen reduction plan

(Cost down by ¥ 100 billion)

Unit costUnit cost▲▲11--yen reduction planyen reduction plan

(Cost down by (Cost down by ¥¥ 100 billion)100 billion)

FY2015

FY2013-2015Corporate strategy

▲ ¥¥ 11.0B ▲ ¥¥ 221.0B ▲ ¥¥ 25.0B ▲ ¥¥ 43.0B

Referencepoint

Referencepoint

100.1％

106.7％

▲1.00

115.4％

10.xx

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(2) New Group Corporate Vision The ANA Group Corporate Vision represents our long terms goals and our ambition to become an important corporate player in the air transport business, leading the market in terms of customer satisfaction and value creation.

(3) Group CSR Policy and Group Code of Conduct (ANA's Way)

The Group CSR policy sets forth ANA’s social responsibility to achieve a mission and vision which represent our promise to society as a corporate group. We have already been working on CSR centered on safety but we will shift to a more global level looking at wider range of stakes holder globally. The Group Action Guideline (ANA's Way) forms the cornerstone of actions that ANA Group employees should take to achieve the vision and principles.

Management and Financial Goals for FY2013

* % Growth is the percent changed from the previous year

Contact: ANA Holdings Public Relations TEL +81-3-6735-1111

About ANA Holdings Inc. ANA Holdings Inc. is an aviation group with global operations and a total of 57 consolidated subsidiaries and 19 affiliates spanning passenger and cargo operations as well as airline-related business such as catering and IT services. ANA Holdings Inc. was formed in April 2013 and is the parent company of the full-service carrier ANA and AirAsia Japan. It also owns a 38.6% stake in Peach, the low-cost carrier based in Kansai Airport. ANA Holdings Inc. promotes a multi-brand

FY2013 Forecast (billion yen)

Operating Revenues 1,610.0 Operating Income 110.0

Profit Margin 6.8% Recurring Profit 80.0

Net Income 45.0 % Growth in international seat km +13.8% % Growth in domestic seat km +4.5%

% Growth in international cargo ton km +14.6% % Growth in domestic cargo ton km +4.7%

Target consolidated operating income for Fiscal 2013 of ¥110.0 billion, with a consolidated operating margin of 6.8%. The medium-term goal for consolidated operating income is ¥150 billion and a consolidated operating margin of 10% or above.

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strategy to leverage the strength of ANA brand and stimulate demand in markets complementary to its full-service airline offering enabling it to expand market share for the Group as a whole and enhance value. ANA Holdings Inc. has 235 aircraft flying to 32 international destinations and 50 domestic cities, carrying more than 43 million passengers each year. It is number one in Asia and eighth in the world, based on revenue. The goal of ANA Holdings Inc. is to be the world’s leading airline group for customer satisfaction and value creation.

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