ANA : Management Strategy Update

Market context
Current market conditions are conducive to ANA HD achieving significant growth, driven principally by the gradual expansion of the Japanese economy and growth in overseas economies, supporting demand for air travel and aviation related services. In addition, preparations are underway for the 2020 Tokyo Olympic and Paralympic Games, including the expansion of takeoff and landing slots at airports in the Tokyo Metropolitan Area, as well as initiatives to meet the government target of welcoming 40 million foreign visitors to Japan.

However, uncertainty in international markets remains difficult to predict, including rapid fluctuations in foreign exchange and crude oil markets, the rise of protectionism in the United States, the UK's departure from the European Union and geopolitical risks including those involving North Korea. In this environment, it is also expected that competition with other airlines and modes of transport will become increasingly intense.

ANA HD has established a robust corporate structure in order to respond quickly to changes in the global business environment and remains committed to delivering its key strategic pillars of 'expanding the airline business' and 'the creation of new businesses and the accelerated growth of existing businesses'.

ANA HD will accelerate FSC/LCC multi-brand strategy together with Vanilla Air and Peach in order to prepare for the growth stage 2020 onwards. Also, ANA HD will further enhance service and operational quality and make continuous investment in personnel resources, foundation of international competitiveness.