22/27 - ANA International Cargo Operations (Business Trend)

◎ This slide provides data for our international cargo operations. ◎ This chart shows 13.0 billion yen in change factors that led to lower revenues in the first half. ◎ With respect to weight factors, ATK optimization on certain routes, including our Okinawa hub network, as well as the impact of U.S.-China trade friction on cargo demand for routes to/from China, resulting in a negative 5.5 billion yen impact on revenues. ◎ Unit price factors accounted for a 7.5 billion yen decrease, as sales rates slowed due to supply-demand gaps and foreign exchange was affected by the impact of the strong yen. ◎ The graph on the right shows overall demand for export/import cargo and ANA Group performance. Overall export/import volume from/to Japan has been decreasing since the second half of the prior fiscal year. While ANA Group results also underperformed the prior fiscal year, our efforts to capture of trilateral cargo allowed us to control the negative impact on revenues. ◎ We will continue to keep a cautious eye on demand trends, implementing adjustments flexibly in response to supply and demand. ◎ Please turn to page 33.