ANA Results for FY2001

ANA (All Nippon Airways Co., Ltd., TSE 9202), announced
consolidated and non-consolidated financial results for fiscal year 2001, which ended March
31, 2002 and its forecast for the current year.
Adverse conditions continued to affect the Japanese economy for the period under review.
Further, the tragic events of September 11 in the U.S. led to an immediate and significant
downturn in demand for international travel. Responding to these severe circumstances,
the ANA Group executed a variety of cost reduction measures and marketing initiatives
aimed at stimulating travel.
In this operating environment, the ANA Group reported consolidated operating revenue of
´1,204.5 billion, down 5.9% and operating income of ´22.9 billion, down 72.1%.
Consolidated recurring profit decreased 97.8% to ´1.4 billion, and consolidated net loss for
the fiscal year was ´9.4 billion.
On a non-consolidated parent company basis, operating revenue at ANA was ´915 billion,
down 5.3%, operating income ´18.4 billion, down 72.2% and recurring loss was ´0.7 billion.
Net loss for the year was ´12.8 billion. All comparisons are year-on-year.
For the fiscal year, ANA Group airlines - All Nippon Airways Co., Air Nippon Co., Air Japan
Co. and Air Hokkaido Co. - carried more than 49.3 million passengers: 45.8 million on
domestic routes, an increase of 0.6%, and 3.5 million on international routes, down 19.8%.
Given the difficult challenges surrounding it, ANA outlined its Corporate Strategy Plan for
FY2002 and 2003. ANA will place renewed emphasis on product/service quality and
customer satisfaction and position itself as a managing holding company into which strategic
management functions of all group companies are centralized for improved value creation
and competitive strength.
ANA is forecasting consolidated results for the fiscal year ending March 31, 2003 of ´1,275
billion in operating revenue, a recurring profit of ´23 billion and net profit of ´2 billion.
1. Keynote - Keeping operational safety as the prerequisite condition, the ANA Group seeks to further
improve the quality of air transportation service, to drastically improve the profitability of the
entire group, and to win confidence of customers and shareholders.
2. Medium Term Management - Strategies And Issues To Be Addressed
Based on the Medium Term Corporate Plan which covers the period through fiscal 2002,
the Group has endeavored to improve its profitability and to strengthen its financial position
during the past three years starting in Fiscal 1999. As a result, targets were attained more
expeditiously than contemplated in the plan through the previous fiscal year.
During the fiscal year under review, however, the circumstances surrounding the ANA
Group have undergone violent changes as exemplified by events following the September
11 terrorist attacks in the United States and the merger plan between Japan Airlines and
Japan Air System. This has created a significant disparity between what was envisaged
when the plan was drawn up and the realities.
Focusing attention on the next two years, when radical changes are imminent, the
company has adopted the “ANA Group Corporate Strategy Plan,” providing guidelines for
corporate management in the fiscal years 2002 and 2003, and the “Corporate Reform Plan”
containing specific measures to implement the Strategy Plan.
Under these plans, the ANA Group continues its endeavors to become a leading
corporate group in Asia with air transportation as its core. Its primary target, however, is
not to become the biggest, but rather to become the first in quality, customer satisfaction and
value creation.
Based on these targets, efforts will be redoubled to pursue “value creating
management,” so that income from domestic operations will be stabilized, profitability of
international operations improved and the earnings of the ANA Group as a whole will
improve in fiscal 2003 to achieve dividend payment.
The company is now determined to put into practice the following action plans in order to
increase customer satisfaction, to improve the corporate financial position, and to pursue
value creation.
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