To Be the World's Leading Airline Group
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Annual Report 2015 Year ended March 2015 Accelerate To Be the World’s Leading Airline Group ANA Group’s Vision Mission Statement Built on a foundation of security and trust, “the wings within ourselves” help to fulfill the hopes and dreams of an interconnected world. ANA Group Safety Principles Safety is our promise to the public and is the foundation of our business. Safety is assured by an integrated management system and mutual respect. Safety is enhanced through individual performance and dedication. Management Vision It is our goal to be the world’s leading airline group in customer satisfaction and value creation. ANA’s Way To live up to our motto of “Trustworthy, Heartwarming, Energetic!”, we work with: 1. Safety: We always hold safety as our utmost priority, because it is the foundation of our business. 2. Customer Orientation: We create the highest possible value for our customers by viewing our actions from their perspective. 3. Social Responsibility: We are committed to contributing to a better, more sustainable society with honesty and integrity. 4. Team Spirit: We respect the diversity of our colleagues worldwide and come together as one team by engaging in direct, sincere and honest dialogue. 5. Endeavor: We endeavor to take on any challenge in the global market through bold initiative and innovative spirit. To Our Stakeholders ANA Group’s Vision Shinichiro Ito Chairman of the Board Shinya Katanozaka of Directors President & Chief Executive Officer We at the ANA Group have a Mission Statement that contains the following beliefs. “Built on a foundation of security and trust” means that all group operations occur on a foundation of security and trust; “the wings within ourselves” connects people and things from around the world; “help to fulfill the hopes and dreams of an interconnected world” is to work together with society to create sustainable values for the future. Based on our brand power and corporate culture we have developed over the 60 years since our founding, we will respond to stakeholders’ expectations by connecting group synergies and comprehensive capabilities to our future growth and creating economic and social value. We will carry on these beliefs to the future contained in our Mission Statement while taking the various management opportunities in front of us and promoting growth strategies. We ask for your continued support for the ANA Group as we continue our journey. Annual Report 2015 1 History of Value Creation Our Four Strengths Creating the ANA Brand Unique & Scale & 1952 Founded as a Private Airline Company Innovative Expansion ANA starts business with two helicopters We generate original values We find support from through bold initiatives and countless numbers of an innovative spirit. customers. Started SKiP service, a domestic check-in Expanded our network by joining Star model, the former Smart-e service 2004 1999 Alliance, one of the largest global alliances 1953 (first in the Japanese airline industry) Commenced First Scheduled Domestic Passenger Operations Commenced Okinawa Cargo Hub & Network Number of passengers carried reached 2009 2003 over 1 billion The Tokyo–Osaka route Invested in Peach Aviation Limited, No. 1 international network carrier Japan’s first Low Cost Carrier (LCC) 2011 2014 at Haneda Established the LCC Vanilla Air Inc. (formerly AirAsia Japan Co., Ltd.) Achieved issuance of 28 million 2015 ANA Mileage Club Cards Established MRO Japan Co., Ltd., 2015 a dedicated aircraft maintenance company 1986 Commenced First Scheduled International Passenger Operations Introduced the Boeing 787 as its launch No. 1: Largest share of passengers The Tokyo–Guam route customer in 2011 carried on domestic operations Unique & Innovative Scale & Expansion Quality Leadership Sustainability 1952 1953 1978 1986 1990 1994 Narita Airport Kansai Airport in operation in operation Commenced first scheduled Commenced first scheduled Founded domestic passenger operations international passenger operations 2 ANA HOLDINGS INC. Our Four Strengths Creating the ANA Brand Quality Leadership Sustainability We create valuable time We have been spreading and precious space under our wings across the world Accumulated our motto of “Trustworthy, in concert with society. Heartwarming, Energetic!” Brand Power Introduced full-flat seats in First Class Selected for inclusion in the FTSE4Good 1996 2006 (first in the Japanese airline industry) SRI index Awarded Airline of the Year for the first time Designated as an Eco-First company 2007 by Air Transport World magazine 2008 (first in the transportation industry) Introduced all aisle seating Designated as a Nadeshiko Brand company 2010 ANA BUSINESS STAGGERED 2014 (first in the Japanese airline industry) (first in the Japanese airline industry) Acquired the highest possible AAA rating for sustainable quality Awarded No. 1 for second consecutive year evaluation from Sumitomo Mitsui Banking Corporation 2014 in website brand value rankings*1 Promoted women through the Positive Action Declaration for ANA SKY WEB Stated the Diversity & Inclusion Declaration Awarded Asia Pacific Airline of the Year 2015 by CAPA*2 Elected to be an official partner of the Tokyo 2020 Olympic and Paralympic Games Japan’s only airline to win the world’s ANA is in 3rd place overall in the Nikkei highest 5-Star rating from SKYTRAX Woman’s Ranking of the “Best 100 for the third consecutive year Companies for Women to Work for in Japan” *1 Source: Tribeck Brand Strategies, Inc. *2 Centre For Aviation 2010 2013 2014 2015 Resumed scheduled international Shifted to a holding Expanded international operations at Haneda Airport company structure network at Haneda Airport Annual Report 2015 7 ANA Group Value Creation Cycle Based on the ANA brand we have developed over the years, we will continue to create OUTCOMES (values) to share with stakeholders and repeat reinvestments to be the world’s leading airline group. INPUTS Financial Capital Financial activities / Earnings Optimal Enhancement and Manufactured Capital Allocation of Development of Infrastructure (airports and facilities) / Revenue Platforms Aircraft / Network Management Development of Intellectual Capital Resources Accumulated Expansion and IT systems / Products & Services Brand Power Service development capability Diversification of Revenue Domains Human Capital Human resources (employees) / Corporate culture / Knowledge / Hospitality Cost Restructuring Social and Relationship Capital Initiatives Regional industries / Regional communities / Trust Natural Capital Tourism resources Foundation Supporting Value Creation Environment (Corporate Governance) Mission Statement and Safety Principles See pages 52–61 for details 2013 2014 Shifted to a holding Expanded international company structure network at Haneda Airport 3 ANA HOLDINGS INC. 4 Human Resources Safety FY2014–16 ANA Group Corporate Strategy Development of Marketing Strategy Operations Communication Products & Services Scale & Expansion Quality Leadership Sustainability Unique & Innovative Pursue expansion and diversification Continue to provide safe and Respect every precious Enhance global competitiveness of revenue domains by enhancing comfortable services with relationship with stakeholders and respond to environmental our developed marketing capability Japanese-style hospitality, for sustainable growth. changes and market needs. and customer platform. “OMOTENASHI.” See pages 30–40 for details Foundation Supporting Value Creation Environment Society (Corporate Governance) See pages 52–61 for details 2015 4 Society OUTCOMES Customers Achieve Financial Targets Creditors To become a truly worthy Investors and Stabilize Earnings Structure & Shareholders Maintain Financial Health group company in the world Employees by creating economic Enhance Customer Convenience Sharing Values with and Comfort Stakeholders and social value. Diversify Human Resources Business Government Taking on Global Challenges Partners Organizations Accumulate Valued Knowledge Regional Activate Society Communities Reduce Environmental Impact FY2014–16 See page 23 for details ANA Group Corporate Strategy Plans for the Fiscal Year Ending March 2017 (Disclosed February 14, 2014) Operating Revenues ¥1,850.0 billion Operating Income ¥130.0 billion Return on Equity (ROE) 7.1% Return on Assets (ROA) 6.3% 2020 Earnings per Share (EPS) ¥17.2 The Tokyo 2020 Olympic and Paralympic Games Increase additional slots in the Tokyo metropolitan area airports (assumed) 5 The world’s leading airline group To become a truly worthy group company in the world by creating economic and social value. The ANA Group’s Value Creation Cycle Allocate INPUTS (six types of capital) optimally based on the brand power developed since our founding. Create OUTCOMES (values) through each group company’s business along with the major strategic themes formulated in the FY2014–16 ANA Group Corporate Strategy. Achieve sustainable growth by sharing OUTCOMES with stakeholders and reinvesting for the future. Aim to be the world’s leading airline group by repeating the value creation cycle generating both economic and social value, with support from all over the world. Long-term See pages 17 to 22 for details Strategic Vision Targets for the Fiscal Year Ending March 2026 (Disclosed January 30, 2015) Operating Revenues ¥2,500.0 billion Operating Income ¥200.0 billion Return on Equity (ROE) 10% Return on Assets (ROA) 8% To the future Earnings per Share (EPS) ¥30 5 Annual Report 2015 6 At a Glance Business Domains and Structure ALL NIPPON AIRWAYS CO.,