12/26 - Cost Management

◎Next, I will address cost management. ◎The graph at the top left shows ASK and group employee numbers, excluding LCC operations. Compared to the fiscal 2017 results, our plan for fiscal 2020 calls for a 19 percent increase in ASK for the combined ANA domestic and international routes. At the same time, we must secure enough pilots and cabin attendants to match ASK. We expect to increase personnel as a whole by approximately 10 percent. Over the past several years, we have been hiring personnel ahead of plan. However, fiscal 2020 will be a stage of productivity improvement in response to significant growth in the scope of our business. ◎As shown below, our unit cost in this context should begin decreasing in fiscal 2020. In the future, we will use AI and IoT for automation and detailed cost management. ◎Last, please turn to page 13.