The first issue to be addressed is the improvement of business performance, and he explained that the company expects to return to profitability in FY2022, as leisure demand is expected to recover further with the easing of travel restrictions and return to pre-Corona levels. He also mentioned that the company is continuing its efforts to build the ANA Economic Zone, which aims to create a “society where people can live on miles,” centered on the Super App that is currently under development, and that the company will maximize earnings through its business portfolio of three brands: domestic and international flights operated by ANA, domestic local and international short-haul routes operated by Peach, and international medium-haul routes operated by Air Japan. He also introduced the company’s efforts to maximize earnings through its business portfolio of three brands: domestic and international routes by ANA, domestic local and international short-haul routes by Peach, and international medium-haul routes by Air Japan.
At the beginning of the meeting, the chairman reported on the consolidated business performance and issues to be addressed. He first reported that net sales for FY2021 increased 40.0% from the previous year to 1,020.3 billion yen, with a net loss of 143.6 billion yen. He explained that although the new Corona continues to have a strong impact on the airline, the deficit is rapidly shrinking, with net loss improving by 260.9 billion yen from the previous year, and that demand is returning on both domestic and international flights. However, he asked for understanding of the company’s decision to suspend dividend payments to shareholders due to the continuing difficult situation caused by the Corona disaster.
Excerpts from the Q&A session
There were three items on the agenda for the general meeting: partial amendment to the Articles of Incorporation for a system of electronic provision of general meeting materials (Proposal 1), election of 11 directors (Proposal 2), and election of two corporate auditors (Proposal 3). Here are excerpts from the main questions raised by shareholders. There were 11 speakers.
When asked when dividends would be restored and whether there are companies that pay dividends even in the red, he repeatedly asked for understanding that the company has continued to not pay dividends due to the fact that the Corona disaster has resulted in two consecutive fiscal years of losses and the need to secure liquidity on hand for the future.
Regarding the recent suggestion that the shareholder special benefit is not easy to use, that it cannot be used on consecutive holidays, and that there are cases where airline tickets cheaper than the shareholder special benefit are sold, he explained that in order to maintain the airline network and provide returns to shareholders, there are situations where the shareholder special benefit cannot be used in order to maintain the revenue base. He explained that there are cases where inexpensive airline tickets are sold with a limited number of seats during off-season periods, but they are promotional in nature and cannot be changed, while shareholder special benefit tickets have no such restrictions.
In response to the question about the aging of CAs (cabin attendants) and their career design, he explained that the number of employees will decrease by 4,000 from the end of FY2020 to the end of FY2021, and that during this period CA hiring will be frozen, and that they will not be hiring any CAs to join the company in spring 2023. He explained that he understands that there are requests from students. He said that he understands that there are requests from students, but asked for understanding that CAs have skills appropriate to their age group, and that staff with child-rearing experience are able to attend to passengers with small children, and that the guest rooms function as a whole team as well as the freshness of the new graduate staff.
Regarding the SAF (Sustainable Aviation Fuel) strategy, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has set a target of 10% conversion to SAF by FY2030, but we have seen media reports that estimates are in the 6% range. ANA is also taking a leadership role in this effort, and although there is talk of shifting fares globally, the introduction of surcharges and other measures will be considered in light of the future social situation. In addition, Shinichi Inoue, President and Representative Director of ANA, an operating company, took the stage to answer the question: “We believe that decarbonization is the sustainability of human beings themselves, and in March, we established an organization called ‘ACT FOR SKY’ to commercialize and promote SAF, and we are working to increase consumption. by SAF. He introduced examples from overseas, saying that “decarbonization is not an issue for individual companies, but for society as a whole and the world as a whole, and there are examples of governments subsidizing SAF until it reaches a reasonable price.
Regarding the suggestion that shareholder benefits could be granted in the form of time-limited mileage rather than paper tickets, which would reduce the cost of issuance and encourage people to use airplanes, the committee responded that mileage coins would be treated like money certificates and could be treated like dividends, and that legal and tax issues would arise. He responded that this would create legal and taxation challenges.
All three proposals were approved as proposed.
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