ANA HOLDINGS INC. (9202)
Consolidated Financial Results
For the three months ended June 30, 2020
ANA HOLDINGS reports Consolidated Financial Results
for the Three Months Ended June 30, 2020
1. Consolidated financial highlights for the three months ended June 30, 2020
(1) Consolidated financial and operating results | (%: year-on-year) | ||||||||||||||||||||
Operating revenues | Operating income | Ordinary income | Net income | ||||||||||||||||||
attributable to | |||||||||||||||||||||
owners of | |||||||||||||||||||||
the parent | |||||||||||||||||||||
Yen | % | Yen | % | Yen | % | Yen | % | ||||||||||||||
(Millions) | (Millions) | (Millions) | (Millions) | ||||||||||||||||||
Three months | 121,608 | (75.7) | (159,065) | - | (156,544) | - | (108,819) | - | |||||||||||||
ended Jun 30, 2020 | |||||||||||||||||||||
Three months | 500,508 | 3.2 | 16,173 | (19.4) | 17,038 | (12.3) | 11,418 | (29.1) | |||||||||||||
ended Jun 30, 2019 | |||||||||||||||||||||
*Comprehensive income for the period Apr 1 - Jun 30, 2020 | ¥ (93,833) million [(-%)] | ||||||||||||||||||||
for the period Apr 1 - Jun 30, 2019 | ¥ | 7,622 million [(83.5%)] | |||||||||||||||||||
Net income | |||||||||||||||||||||
per share | |||||||||||||||||||||
Yen | |||||||||||||||||||||
Three months | (325.29) | ||||||||||||||||||||
ended Jun 30, 2020 | |||||||||||||||||||||
Three months | 34.12 | ||||||||||||||||||||
ended Jun 30, 2019 | |||||||||||||||||||||
(2) Consolidated financial positions | |||||||||||||||||||||
Total assets | Net assets | Shareholders' | Net assets per | ||||||||||||||||||
equity ratio | Share | ||||||||||||||||||||
Yen (Millions) | Yen (Millions) | % | Yen | ||||||||||||||||||
As of Jun 30, 2020 | 2,857,396 | 974,309 | 33.9 | 2,892.69 | |||||||||||||||||
As of Mar 31, 2020 | 2,560,153 | 1,068,870 | 41.4 | 3,171.80 | |||||||||||||||||
(Reference) Shareholders' equity | as of Jun 30, 2020 | ¥ 967,754 million | |||||||||||||||||||
as of Mar 31, 2020 | ¥1,061,028 million |
2. Consolidated earnings forecast for the fiscal year ending March 31, 2021
The consolidated earnings forecast for the year ending March 31, 2021, is yet to be determined at this stage while it is unknown when the outbreak of Coronavirus will end, and this will be promptly announced as soon as disclosure of a reasonable forecast becomes possible.
1
3. Other
- Changes of significant subsidiaries during the period (changes of specific subsidiaries in accordance with changes in the scope of consolidation): None
Consolidated | Equity method | |
Newly added | - | - |
Excluded | - | - |
- Application of accounting methods which are exceptional for quarterly consolidated financial statements: None
- Changes in accounting policies, accounting estimates and restatement of corrections
- Changes caused by revision of accounting standards: None
- Changes other than (i): None
- Changes in accounting estimates: None
- Restatement of corrections: None
- Number of issued shares (Common stock)
Number of Shares | ||||
FY2020 | FY2019 | |||
Number of shares issued | As of Jun 30 | 348,498,361 | As of Mar 31 | 348,498,361 |
(including treasury stock) | ||||
Number of treasury stock | As of Jun 30 | 13,947,305 | As of Mar 31 | 13,978,652 |
Average number of shares | Three months | 334,529,857 | Three months | 334,633,156 |
outstanding during the period | ended Jun 30 | ended Jun 30 | ||
- This report is not subject to audit procedures
-
Explanation for appropriate use of forecasts and other notes
The consolidated earnings forecast for the year ending March 31, 2021, is yet to be determined at this stage.
2
Contents | |
1. Qualitative Information / Financial Statements, etc......................................................................................... | 4 |
(1) Explanation of Consolidated Operating Results………………………………………………………… | 4 |
- Information Regarding Consolidated Financial Conditions……………………………………………. 10
(3) Explanation of Forecast of Consolidated Financial Results…………………………………………… 10
2. Financial Statements and Operating Results………………………………………………………………………. 11
(1) Consolidated Balance Sheet……………………………………………………………………………… 11
- Consolidated Statement of Income and Consolidated Statement of Comprehensive Income……. 13 Consolidated Statement of Income………………………………………………………………………. 13
Consolidated Statement of Comprehensive Income…………………………………………………… | 14 | |
(3) | Consolidated Statement of Cash Flows-Summary…………………………………………………….. | 14 |
(4) | Notes to Consolidated Financial Statements…………………………………………………………… | 14 |
(Notes Regarding Going Concern Assumption)………………………………………………………… | 14 | |
(Notes in the Event of Significant Changes in Shareholders' Capital) ………………………………. | 14 | |
(Additional Information)……………………………………………………………………………………. | 15 | |
(Segment Information)…………………………………………………………………………………….. | 15 | |
3. Other | ............................................................................................................................................................... | 16 |
3
APPENDIX
Overview of consolidated financial results for the Three Months Ended June 30, 2020
1. Qualitative Information / Financial Statements, etc.
(1) Explanation of Consolidated Operating Results
Yen (Billions) | ||||
Consolidated Operating Results | Three months ended | Three months ended | Year-on-Year | |
Jun 30, 2020 | Jun 30, 2019 | (%) | ||
Operating Revenues | 121.6 | 500.5 | (75.7) | |
Air Transportation | 95.3 | 439.7 | (78.3) | |
Airline Related | 59.8 | 73.9 | (19.0) | |
Travel Services | 3.1 | 38.2 | (91.7) | |
Trade and Retail | 19.7 | 37.5 | (47.4) | |
Other | 9.2 | 10.3 | (11.3) | |
Intersegment Transactions | (65.6) | (99.2) | - | |
Operating Income (loss) | (159.0) | 16.1 | - | |
Air Transportation | (153.7) | 14.1 | - | |
Airline Related | 0.8 | 3.8 | (78.4) | |
Travel Services | (2.7) | 0.4 | - | |
Trade and Retail | (1.3) | 0.7 | - | |
Other | 0.6 | 0.5 | 7.8 | |
Intersegment Transactions | (2.6) | (3.5) | - | |
Ordinary income | (156.5) | 17.0 | - | |
Net income attributable to owners of | (108.8) | 11.4 | - | |
the parent | ||||
See Notes 1, 2, & 3 below.
In the first quarter of fiscal year 2020 (April 1, 2020 - June 30, 2020, hereinafter the "three months ended June 30, 2020"), although the Japanese economy is naturally in a difficult position due to the effects of COVID-19 infections, including a sudden decrease in corporate earnings and a weakening trend in terms of employment, we are now seeing movement toward a recovery.
Under these economic conditions, operating revenues decreased rapidly to ¥121.6 billion due to the severe impact on all segments. In addition to reducing variable expenses due to curbing the scale of operations, fixed expenses such as personnel costs were decreased, resulting in operating expenses being lowered by more than ¥200.0 billion year on year. However, due to the extremely large reduction in operating revenues, operating loss was ¥159.0 billion, ordinary loss was ¥156.5 billion and net loss attributable to owners of the parent was ¥108.8 billion.
4
Overview by Segment
- Air Transportation
Operating revenues: ¥95.3billion, down 78.3% year-on-year
Operating loss: ¥153.7 billion (Operating income ¥14.1 billion same period a year ago)
As a result of the spread of Coronavirus (COVID-19), customer demand decreased dramatically and operating revenues significantly decreased year on year. In addition to reducing fuel costs and airport landing fees by constraining the scale of operations, ANA also took steps to reduce personnel costs such as remuneration for directors, wages of managerial personnel and summer bonuses, but a large operating loss was recorded.
The ANA Group implemented special measures enabling customers who had already purchased tickets to refund the tickets or change the boarding date without any additional fees. Furthermore, as the impact of COVID-19 continues, ANA has engaged in the creation of clean and sanitary environments in airports, lounges and aircraft cabins based on the "ANA Care Promise" initiatives to enable customers to use aircraft safely and with reassuring comfort. Also, Peach Aviation Limited has taken thorough infection control at airports and in cabins.
In June, the ANA Group became the first airline to receive a letter of appreciation from the Minister for Foreign Affairs for its contribution to supporting the evacuation of Japanese citizens by operating charter aircraft from Wuhan as COVID-19 spread.
Category | Three months ended | Three months ended | Year-on-Year | |
Jun 30, 2020 | Jun 30, 2019 | (%) | ||
Passenger Revenues | (Billion yen) | 9.5 | 164.1 | (94.2) |
Number of Passengers | (Passengers) | 91,582 | 2,507,017 | (96.3) |
Available Seat Km | (Thousand km) | 2,365,345 | 17,137,720 | (86.2) |
Revenue Passenger Km | (Thousand km) | 619,889 | 12,917,832 | (95.2) |
Load Factor | (%) | 26.2 | 75.4 | (49.2) |
*See Notes 3, 4, 8, 9, 13 & 14 below.
In international passenger services, both passenger numbers and revenue decreased significantly year on year. This was due to the substantial decline in passenger demand in all areas as a result of the strengthening and continuation of immigration restrictions in countries worldwide due to the global spread of COVID-19.
In terms of the route network, ANA continued to suspend or reduce the number of flights due to the sudden decrease in demand, but in order to fulfill our mission as a public transportation organization, the scale of operations was maintained at 13.8% of that in the same period last year due to the continuation of operation of certain routes to meet demand for Japanese people returning from overseas, demand for evacuation and return between North America and Asia/China, and demand for people being assigned overseas.
In terms of sales and service, Star Alliance established a variety of initiatives for the provision of a sanitary environment so customers on all flights of member airlines can travel with peace of mind, and provided information on the details through the "Travel Information Hub" website which can be found at: https://www.staralliance.com/en/journey-info.
5
Category | Three months ended | Three months ended | Year-on-Year | |
Jun 30, 2020 | Jun 30, 2019 | (%) | ||
Passenger Revenues | (Billion yen) | 22.4 | 166.2 | (86.5) |
Number of Passengers | (Passengers) | 1,278,695 | 10,840,791 | (88.2) |
Available Seat Km | (Thousand km) | 3,939,889 | 14,781,296 | (73.3) |
Revenue Passenger Km | (Thousand km) | 1,176,208 | 9,913,450 | (88.1) |
Load Factor | (%) | 29.9 | 67.1 | (37.2) |
*See Notes 3, 4, 5, 8, 9, 13 & 14 below.
In domestic passenger service, COVID-19 had an impact from the end of February and demand declined further once a state of emergency was declared in April, and both passenger numbers and revenue significantly decreased year on year.
In terms of the route network, flights were suspended or reduced on routes according to the decline in air travel demand, and the scale of operations in May decreased to 14.8% year on year, but flights were gradually increased after the lifting of the state of emergency, and the scale of operations in June reached 25.2% of the same period last year. We will continue to increase flights while monitoring trends in demand, and the scale of operations is expected to recover to 43.3% of the same period last year in July and 72.4% of the same period last year in August.
In terms of sales and service, efforts were made to increase convenience such as introducing an online check-in service enabling check-in procedures and issuing of boarding passes from 24 hours before the flight in June and allowing certain passengers formerly were unable to use the ANA's SKiP service to proceed directly to airport security checkpoint without using airport self-servicecheck-in machine or check-in counter on the day of departure.
Category | Three months ended | Three months ended | Year-on-Year | ||
Jun 30, 2020 | Jun 30, 2019 | (%) | |||
International Cargo Revenue | (Billion yen) | 25.4 | 26.1 | (2.7) | |
Available Cargo Capacity | (Thousand ton-km) | 689,724 | 1,792,927 | (61.5) | |
Cargo Volume | (Tons) | 98,935 | 213,524 | (53.7) | |
Cargo Traffic Volume | (Thousand ton-km) | 451,723 | 1,034,137 | (56.3) | |
Mail Revenues | (Billion yen) | 0.4 | 1.2 | (63.5) | |
Mail Volume | (Tons) | 1,829 | 5,504 | (66.8) | |
Mail Traffic Volume | (Thousand ton-km) | 11,726 | 28,647 | (59.1) | |
Cargo and Mail Load Factor | (%) | 67.2 | 59.3 | 7.9 | |
Domestic Cargo Revenues | (Billion yen) | 3.6 | 6.1 | (41.5) | |
Available Cargo Capacity | (Thousand ton-km) | 94,519 | 428,914 | (78.0) | |
Cargo volume | (Tons) | 35,349 | 89,076 | (60.3) | |
Cargo Traffic Volume | (Thousand ton-km) | 39,970 | 93,470 | (57.2) |
6
Mail Revenues | (Billion yen) | 0.4 | 0.7 | (40.2) | |
Mail Volume | (Tons) | 4,155 | 7,347 | (43.4) | |
Mail Traffic Volume | (Thousand ton-km) | 4,116 | 7,282 | (43.5) | |
Cargo and Mail Load Factor | (%) | 46.6 | 23.5 | 23.2 | |
*See Notes 3, 4, 6, 7, 10, 11, 12, 13 & 15 below.
In the international cargo service, demand declined due to the stagnation of the global economy resulting from COVID-19. While the supply of cargo space decreased significantly as a result of the suspension and reduction of passenger flights worldwide, there was an increase in demand for transportation of vital goods such as masks, etc., and supply and demand was strained. Under such conditions, the ANA Group actively promoted the establishment of temporary flights and charter flights using cargo aircraft, the operation of temporary cargo flights using passenger aircraft, and the loading of cargo in the cabin, and worked to capture transportation demand for vital cargo. As a result, revenue was kept at the almost same level of the same period last year.
<LCC>
Category | Three months ended | Three months ended | Year-on-Year | |
Jun 30, 2020 | Jun 30, 2019 | (%) | ||
LCC Revenues | (Billion yen) | 1.7 | 20.6 | (91.6) |
Number of Passengers | (Passengers) | 173,876 | 1,941,751 | (91.0) |
Available Seat Km | (Thousand km) | 559,732 | 2,873,396 | (80.5) |
Revenue Passenger Km | (Thousand km) | 197,468 | 2,462,688 | (92.0) |
Load Factor | (%) | 35.3 | 85.7 | (50.4) |
*See Notes 3, 8, 9,13 & 16 below.
Both the passenger numbers and revenue significantly decreased year on year due to the suspension and reduction of flights to match the decline in demand caused by COVID-19.
In terms of the route network, the scale of domestic operations was 42.0% compared to the same period last year as a result of the spread of COVID-19. Operation of all domestic routes resumed from mid-June, and the scale of operations will be returned to the same level as last year in July. The domestic route network will also be expanded further, with new routes opening from August, etc. On international routes, the suspension of flights on all routes that began in mid-March will continue due to the strengthening and continuation of immigration restrictions in various countries.
<Others in Air Transportation>
Other revenue in Air Transportation was ¥31.6 billion (¥54.3 billion, down 41.7% year-on-year). Other revenue in Air Transportation includes revenue from the mileage program, in-flight sales revenue, and revenue from maintenance contracts, etc.
7
- Airline Related
Operating revenues: ¥59.8 billion, down 19.0% year-on-year
Operating income: ¥0.8 billion, down 78.4% year-on-year
As a result of a decrease in contracts for ground handling services such as passenger check-in and baggage handling at all airports and the decrease in contracts related to in-flight meals due to the impact of suspension and reduction of flights of various airlines in response to the spread of COVID-19, operating revenues decreased by 19.0% year on year, and operating income decreased significantly year on year.
-
Travel Service
Operating revenues: ¥3.1 billion, down 91.7% year-on-year
Operating loss: ¥2.7 billion (Operating income ¥0.4 billion same period a year ago)
In addition to tours in domestic travel services being canceled in succession due to the spread of COVID-19, overseas travel services suffered severe effects such as the cancellation of all tours run by the ANA Group based on the overseas travel warning issued by the Ministry of Foreign Affairs. As a result, operating revenues decreased by 91.7% year on year and an operating loss was recorded.
In order to allow customers to travel with peace of mind, ANA has published the "Care Promise protocols for ANA Traveler's" on the website, introducing measures to prevent infection specifically in travel, and will continue to provide information to customers of the domestic travel service, which has shown slight improvement since June. - Trade and Retail
Operating revenues: ¥19.7 billion, down 47.4% year-on-year
Operating loss: ¥1.3 billion (Operating income ¥0.7 billion same period a year ago)
In the retail business, there have been large-scale temporary closures and shortening of business hours of ANA DUTY FREE SHOP airport duty-free stores and ANA Festa shops in airports due to the impact of substantial suspension and reduction of passenger flights in response to the spread of COVID-19, and in the lifestyle-industries business, trade in items such as in-flight food, beverages and amenities also decreased significantly. As a result, operating revenues decreased by 47.4% year on year and an operating loss was recorded.
8
-
Other
Operating revenues: ¥9.2 billion, down 11.3% year-on-year
Operating income: ¥0.6 billion, up 7.8% year-on-year
In addition to a decrease in revenue in the real-estate business, revenue in the airline security business and the facility management business decreased due to closures of airport facilities caused by COVID-19. As a result, operating revenues decreased by 11.3% year on year. Meanwhile, operating income increased by 7.8% year on year due to the reduction of personnel expenses and outsourcing expenses.
"avatarin Inc." was established in April 2020 to create new business models and resolve social issues using the remotely controlled robots called avatars as social infrastructure to offer services that can be used in a variety of applications such as medicine, nursing, education, and shopping.
Notes: - The breakdowns within segments are the categories used for internal management.
- The revenues for each segment include internal inter-segment revenues; operating income/loss is the income/loss for the segment.
- The above figures do not include consumption tax, etc.
- Non scheduled flights have been excluded from both domestic and international routes.
- The results for passenger travel on domestic routes include results from code share flights with IBEX Airlines Co., Ltd., AIRDO Co., Ltd., Solaseed Air Inc., and Star Flyer Inc. and some of code share flights with ORIENTAL AIR BRIDGE CO., LTD.
- The results for international cargo and mail include the results for code share flights, results for airline charter flights, flights with block space agreements, and land transport results.
- Domestic cargo and mail results include results for code share flights with AIRDO Co., Ltd., Solaseed Air Inc., ORIENTAL AIR BRIDGE CO., LTD and Star Flyer Inc., results for airline charter flights, and land transport results.
- Available Seat-Kilometers represent the total figure calculated by multiplying the available number of seats on each segment of each route (seats) by the distance for each segment (km).
- Revenue Passenger-Kilometers represent the total figure calculated by multiplying the number of passengers (people) on each segment of each route by the distance for each segment (km).
- Available Cargo Capacity is the total calculated by multiplying the available cargo space (tons) on each segment of each route by the distance for each segment (km). Please note that for passenger aircraft, the available cargo space in the hold (belly) of the aircraft is multiplied by the distance traveled for each segment. Moreover, the available cargo space in the belly includes the available space for checked luggage of passengers on the flight in addition to cargo, mail, etc.
- Cargo Traffic Volume and Mail Traffic Volume is the total calculated by multiplying the volume of cargo transported on each segment of each route (tons) by the distance for each segment (km).
- The Cargo and Mail Load Factor is the figure arrived at by dividing the sum of the cargo traffic volume and the mail traffic volume by the available cargo capacity.
- Percentage point difference for Passenger load factor and cargo and mail load factor between previous year and FY2019 is indicated in field of year-on-year.
- The results for Peach Aviation Limited and Vanilla Air Inc. are not included.
- Peach Aviation Limited and Vanilla Air Inc. do not handle cargo or mail.
- The results for LCC include the results for Peach Aviation Limited and Vanilla Air Inc. Pease note that
the results of Vanilla Air Inc. are included only in previous same period due to the integration of Peach Aviation Limited. and Vanilla Air Inc.
9
(2) Information Regarding Consolidated Financial Conditions
- Financial conditions as of June 30, 2020
Assets: Due to temporary increase in liquidity on hand, total assets increased by ¥297.2 billion compared to the balance as of the end of FY2019 to ¥2,857.3 billion.
Liabilities: Due to funding through borrowings, total liabilities increased by ¥391.8 billion compared to the balance as of the end of FY2019, to ¥1,883.0 billion. Interest-bearing debt increased by ¥516.0 billion compared to the balance as of the end of FY2019, to ¥1,358.9 billion.
Net assets: Due to a decrease in retained earnings, resulting in a net assets decreased by ¥94.5 billion compared to the balance as of the end of FY2019, to ¥974.3 billion.
For details, please refer to page 11 "2. Financial Statements and Operating Results (1) Consolidated Balance Sheet."
- Cash Flows for three months ended June 30, 2020
Operating activities: Loss before income taxes and non-controlling interests for the current period was ¥156.1 billion. After adjustments on non-cash items such as depreciation and amortization and addition and subtraction of accounts receivable and payable for operating activities, cash flows from operating activities (outflow) was ¥135.3 billion.
Investment activities: Due to capital expenditures and proceeds from the redemption of marketable securities, cash flows from investing activities (inflow) was ¥27.6 billion. As a result, free cash flow (outflow) was ¥107.7 billion.
Financial activities: Due to the fundraising, cash flow from financing activities (inflow) was ¥ 513.7 billion.
As a result of the above, cash and cash equivalents at the end of the current period increased by ¥ 405.8billion compared to the balance from the beginning at the period, to ¥541.8billion.
For details, please refer to page 14 "2. Financial Statements and Operating Results (3) Consolidated Statement of Cash Flows-Summary."
(3) Explanation of Forecast of Consolidated Financial Results
The consolidated forecast for the year ending March 31, 2021, is yet to be determined at the present time while it is no prospect of convergence of COVID-19, and this will be promptly disclosed once disclosure is possible.
The behavior of people has changed due to the impact of COVID-19, and people are continuing to adhere to a "new style of living." This has also impacted the airline industry, where the demand structure is greatly changing. Against this background, we are working in the short term to transform our business structure with the goal of balancing income and expenditure by optimizing the portfolio strategy in our aviation business and managing resources to reduce fixed costs. Over the medium term, we will pursue continuous growth by establishing a powerful group business structure that reliably creates value with a view toward containing the spread of COVID-19, by deepening our portfolio strategy in the airline business and continually establishing revenue streams in non-airline businesses next to the airline business.
10
2. Financial Statements and Operating Results
(1) Consolidated Balance Sheet
Yen (Millions) | ||
Assets | FY2020 | FY2019 |
as of Jun 30, 2020 | as of Mar 31, 2020 | |
Current assets: | ||
Cash and deposits | 516,916 | 109,447 |
Notes and accounts receivable | 64,055 | 98,845 |
Lease receivables | 21,858 | 22,823 |
Marketable securities | 59,970 | 129,200 |
Inventories (Merchandise) | 14,253 | 13,490 |
Inventories (Supplies) | 53,352 | 53,822 |
Other current assets | 108,256 | 144,073 |
Allowance for doubtful accounts | (342) | (538) |
Total current assets | 838,318 | 571,162 |
Fixed assets | ||
Property and equipment: | ||
Buildings and structures | 127,019 | 127,983 |
Aircraft | 1,137,956 | 1,157,585 |
Machinery, equipment and vehicles | 33,924 | 33,219 |
Furniture and fixtures | 19,616 | 21,751 |
Land | 53,885 | 53,886 |
Lease assets | 5,954 | 5,897 |
Construction in progress | 183,161 | 180,005 |
Total property and equipment | 1,561,515 | 1,580,326 |
Intangible assets: | ||
Goodwill | 23,932 | 24,461 |
Other intangible assets | 98,834 | 101,062 |
Total Intangible assets | 122,766 | 125,523 |
Investments and other assets: | ||
Investments securities | 158,104 | 145,664 |
Long-term receivables | 5,230 | 5,269 |
Deferred income taxes | 140,400 | 99,824 |
Other assets | 32,578 | 33,614 |
Allowance for doubtful accounts | (2,284) | (2,029) |
Total investments and other assets | 334,028 | 282,342 |
Total fixed assets | 2,018,309 | 1,988,191 |
Deferred assets | 769 | 800 |
TOTAL | 2,857,396 | 2,560,153 |
11
Yen (Millions) | ||
Liabilities and Net assets | FY2020 | FY2019 |
as of Jun 30, 2020 | as of Mar 31, 2020 | |
Liabilities | ||
Current liabilities: | ||
Accounts payable | 124,409 | 185,897 |
Short-term loans | 102,301 | 429 |
Current portion of long-term debt | 91,573 | 84,057 |
Current portion of bonds | 20,000 | 20,000 |
Finance lease obligations | 3,728 | 3,821 |
Income taxes payable | 8,121 | 8,441 |
Advance ticket sales | 72,207 | 111,827 |
Accrued bonuses to employees | 21,670 | 21,158 |
Other provisions | 8,299 | 5,958 |
Other current liabilities | 68,828 | 88,958 |
Total current liabilities | 521,136 | 530,546 |
Long-term liabilities: | ||
Bonds | 165,000 | 165,000 |
Convertible bonds with stock acquisition rights | 140,000 | 140,000 |
Long-term debt | 825,363 | 416,900 |
Finance lease obligations | 10,965 | 12,655 |
Deferred income taxes | 170 | 112 |
Accrued bonuses to employees | 250 | - |
Accrued corporate executive officers' retirement benefits | 953 | 959 |
Net defined benefit liabilities | 163,172 | 163,384 |
Other provisions | 14,614 | 15,765 |
Asset retirement obligations | 1,214 | 1,224 |
Other long-term liabilities | 40,250 | 44,738 |
Total long-term liabilities | 1,361,951 | 960,737 |
Total liabilities | 1,883,087 | 1,491,283 |
Net assets | ||
Shareholders' equity: | ||
Common stock | 318,789 | 318,789 |
Capital surplus | 258,469 | 258,470 |
Retained earnings | 440,906 | 550,839 |
Treasury stock | (59,327) | (59,435) |
Total shareholders' equity | 958,837 | 1,068,663 |
Accumulated other comprehensive income: | ||
Unrealized gain on securities | 29,613 | 22,120 |
Deferred loss on derivatives under hedge accounting | (6,108) | (14,595) |
Foreign currency translation adjustments | 2,618 | 2,668 |
Defined retirement benefit plans | (17,206) | (17,828) |
Total | 8,917 | (7,635) |
Non-controlling interests | 6,555 | 7,842 |
Total net assets | 974,309 | 1,068,870 |
TOTAL | 2,857,396 | 2,560,153 |
12
- Consolidated Statement of Income and Consolidated Statement of Comprehensive IncomeConsolidated Statement of Income
Yen (Millions) | ||
Three months ended | Three months ended | |
Jun 30, 2020 | Jun 30, 2019 | |
Operating revenues | 121,608 | 500,508 |
Cost of sales | 235,519 | 399,226 |
Gross (loss) profit | (113,911) | 101,282 |
Selling, general and administrative expenses | ||
Commissions | 7,997 | 27,918 |
Advertising | 2,232 | 3,222 |
Employees' salaries and bonuses | 7,055 | 8,618 |
Provision of allowance for doubtful accounts | (19) | (2) |
Provision for accrued bonuses to employees | 1,858 | 3,059 |
Retirement benefit expenses | 751 | 857 |
Depreciation | 6,705 | 6,751 |
Other | 18,575 | 34,686 |
Total selling, general and administrative expenses | 45,154 | 85,109 |
Operating (loss) income | (159,065) | 16,173 |
Other income: | ||
Interest income | 66 | 82 |
Dividend income | 816 | 543 |
Equity in earnings of unconsolidated subsidiaries and affiliates | - | 226 |
Foreign exchange gains | 1,145 | - |
Gain on sales of assets | 1,651 | 1,129 |
Gain on donation of non-current assets | 484 | 859 |
Subsidies for employment adjustment | 7,178 | - |
Other | 1,007 | 855 |
Total other income | 12,347 | 3,694 |
Other expenses: | ||
Interest expenses | 1,868 | 1,597 |
Equity in losses of unconsolidated subsidiaries and affiliates | 795 | - |
Foreign exchange loss, net | - | 151 |
Loss on sales of assets | 52 | 59 |
Loss on disposal of assets | 382 | 392 |
Loss on valuation of derivatives | 5,777 | - |
Other | 952 | 630 |
Total other expenses | 9,826 | 2,829 |
Ordinary (loss) income | (156,544) | 17,038 |
Special gain | ||
Gain on sales of investment securities | - | 352 |
Gain on sales of shares of subsidiaries and affiliates | 297 | - |
Subsidy | 82 | 29 |
Total special gain | 379 | 381 |
Special loss | ||
Loss on valuation of investments in unconsolidated subsidiaries a | - | 19 |
affiliates | ||
Total special loss | - | 19 |
(Loss) Income before income taxes | (156,165) | 17,400 |
Income taxes | (45,764) | 6,098 |
Net (loss) income | (110,401) | 11,302 |
Net loss attributable to non-controlling interests | (1,582) | (116) |
Net (loss) income attributable to owners of the parent | (108,819) | 11,418 |
13
Consolidated Statement of Comprehensive Income
Yen (Millions) | ||
Three months ended | Three months ended | |
Jun 30, 2020 | Jun 30, 2019 | |
Net (loss) income | (110,401) | 11,302 |
Other comprehensive income: | ||
Unrealized gain on securities | 7,486 | 5,304 |
Deferred gain (loss) on derivatives under hedge accounting | 8,428 | (9,488) |
Foreign currency translation adjustments | (72) | (128) |
Defined retirement benefit plans | 623 | 685 |
Share of other comprehensive income (loss) in affiliates | 103 | (53) |
Total other comprehensive income (loss) | 16,568 | (3,680) |
Comprehensive income | (93,833) | 7,622 |
Total comprehensive income attributable to: | ||
Owners of the parent | (92,267) | 7,788 |
Non-controlling interests | (1,566) | (166) |
(3) Consolidated Statement of Cash Flows-Summary | ||
Yen (Millions) | ||
Three months ended | Three months ended | |
Jun 30, 2020 | Jun 30, 2019 |
I. Cash flows from operating activities
Net cash provided by operating activities (Note 1)
-
Cash flows from investing activities
Net cash used in investing activities (Note 2)
III. Cash flows from financing activities Net cash used in financing activities
IV. Effect of exchange rate changes on cash and cash equivalents
(135,337)115,898
27,632(101,945)
513,748(5,787)
85(630)
V. Net increase in cash and cash equivalents | 406,128 | 7,536 |
VI. Cash and cash equivalents at beginning of period | 135,937 | 211,838 |
VII. Net (decrease) increase resulting from changes in | (236) | 553 |
scope of consolidation | ||
VIII. Cash and cash equivalents at end of period | 541,829 | 219,927 |
Note 1 including, | 45,029 | 42,187 |
Depreciation and amortization | ||
Note 2 including, | (38,890) | (130,532) |
Investment in capital expenditures | ||
(4) Notes to Consolidated Financial Statements
(Notes Regarding Going Concern Assumption)
None
(Notes in the Event of Significant Changes in Shareholders' Capital)
None
14
(Additional Information)
Accounting estimates associated with the spread of COVID-19
The assumption of accounting estimates associated with the spread of COVID-19 has not been significantly changed from the Annual Securities Reports of the previous fiscal year.
(Segment Information)
I. Three months ended Jun 30, 2020
1. Information on amount of operating revenues, profit or loss, assets, liabilities and others by reporting segment Yen (Millions)
Reportable Segments | |||||
Air | Airline | Travel | Trade and | Subtotal | |
Transportation | Related | Services | Retail | ||
Operating revenues | 90,986 | 8,811 | 1,486 | 17,536 | 118,819 |
from external customers | |||||
Intersegment revenues | 4,333 | 51,033 | 1,669 | 2,211 | 59,246 |
or transfers | |||||
Total | 95,319 | 59,844 | 3,155 | 19,747 | 178,065 |
Segment profit (loss) | (153,771) | 824 | (2,742) | (1,352) | (157,041) |
Others (*1) | Total | Adjustments (*2) | Consolidated (*3) | |
Operating revenues | 2,789 | 121,608 | - | 121,608 |
from external customers | ||||
Intersegment revenues | 6,427 | 65,673 | (65,673) | - |
or transfers | ||||
Total | 9,216 | 187,281 | (65,673) | 121,608 |
Segment profit (loss) | 635 | (156,406) | (2,659) | (159,065) |
*1. "Others" refers to all business segments that are not included in reportable segments, such as facility management, business support and other operations.
*2. "Adjustments" of "Segment profit (loss)" are mainly the elimination of intersegment transactions and general corporate expenses.
*3. "Segment profit (loss)" is reconciled to operating income on the consolidated statement of income for the current period.
2. Information regarding impairment loss on fixed assets or goodwill by reportable segment: None
15
II. Three months ended Jun 30, 2019
1. Information on amount of operating revenues, profit or loss, assets, liabilities and others by reporting segment Yen (Millions)
Reportable Segments | |||||
Air | Airline | Travel | Trade and | Subtotal | |
Transportation | Related | Services | Retail | ||
Operating revenues | 418,375 | 11,856 | 35,830 | 30,552 | 496,613 |
from external customers | |||||
Intersegment revenues | 21,327 | 62,050 | 2,376 | 6,958 | 92,711 |
or transfers | |||||
Total | 439,702 | 73,906 | 38,206 | 37,510 | 589,324 |
Segment profit (loss) | 14,132 | 3,818 | 402 | 750 | 19,102 |
Others (*1) | Total | Adjustments (*2) | Consolidated (*3) | |
Operating revenues | 3,895 | 500,508 | - | 500,508 |
from external customers | ||||
Intersegment revenues | 6,497 | 99,208 | (99,208) | - |
or transfers | ||||
Total | 10,392 | 599,716 | (99,208) | 500,508 |
Segment profit (loss) | 589 | 19,691 | (3,518) | 16,173 |
*1. "Others" refers to all business segments that are not included in reportable segments, such as facility management, business support and other operations.
*2. "Adjustments" of "Segment profit (loss)" are mainly the elimination of intersegment transactions and general corporate expenses.
*3. "Segment profit (loss)" is reconciled to operating income on the consolidated statement of income for the current period.
- Information regarding impairment loss on fixed assets or goodwill by reportable segment: None
- Other
Important factors related to going concern status
The ANA group has been heavily affected by the impact of the spread of COVID-19, and these extremely difficult economic conditions are expected to continue into the future.
Under these unprecedented conditions, the ANA group is not only reducing the scale of its operations in the aviation business to reduce aviation-related expenses such as fuel, but is also reducing personnel costs such as by reducing executive compensation packages and management-level salaries and furloughing employees, in addition to carefully scrutinizing and limiting capital investment such as in aircraft, and reviewing the timing of implementation. Furthermore, in the 3 months from April to June this year, we not only secured total loans of 535.0 billion JPY from commercial banks and the Development Bank of Japan, but we also newly signed 350.0 billion JPY of commitment line contracts in addition to the existing 150.0 billion JPY credit line. Since we are continuing to work to secure liquidity on hand in each of the group companies by procuring funding including appropriately sized loans as needed, we have judged that there are no important uncertainties in the company's status as a going concern.
16
Attachments
- Original document
- Permalink
Disclaimer
ANA Holdings Inc. published this content on 29 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2020 06:05:06 UTC