Balance Sheet(As of March 31, 2017)(M illions of yen)

Assets
Account title
Current assets

Liabilities
AmountAccount title
45,991

AmountCurrent liabilities

15,01036,388

Accounts payable-trade－

Accounts receivable - trade－

Current portion of long-term loans pay able－

Merchandise－

Accounts receivable - other852

Accounts payable - other－

Prepaid expenses－

Accrued expenses－

Deferred tax assets (current)

212

Income taxes payable－

Other current assets

10

Accrued interest expenses

6

Cash and deposits－(Preferred loan)

Other current liabilities
Noncurrent assets

114,190

Tangible assets

109,847

Shareholder subordinated bonds－Buildings

95,744Long-term loans payable－Structures

1,286(Preferred loan)( 18,000)

M achinery and equipment

5,822(Shareholder subordinated loans)( 18,000)

VehiclesNoncurrent liabilities

1,270

6

129,328

Long-term lease deposit received

485

Tools, furniture and fixtures

6,251

Provision for directors' retirement benefits－

Construction in progress

736

Interest rate swap liabilities－Total liabilities
Intangible assets

1,121

Software－Investments and other assets
Long-term prepaid expenses

144,338
Net assets

Shareholders' equity

20,804

Capital stock

9,000

Capital surplus

9,000

3,221

Capital reserve

9,000

15

Retained earnings

2,804

Deferred tax assets (noncurrent)

2,205

Other retained earnings

2,804

Separately managed penalty in trust

1,000

Retained earnings brought forward

2,804

Valuation and translation adjustments

Deferred gains or losses on hedges

Total assets

160,1821△ 4,960－Total net assets

15,843

Total liabilities and net assets

160,1822Notes to Non-Consolidated Financial Statements

I. Notes on Matters Related to Important Accounting Policies
1. Criteria and methods for evaluating assets(1) Derivatives: Market value method(2) Inventory assets:

Based on cost method using retail method (balance sheet values are calculated using
method of reducing book value when the contribution of inventories toprofitability declines)

2. Method of depreciation of noncurrent assets(1) Property, plant and equipment:(2) Intangible assets:

Straight line method

Straight line method
As for the software used in-house, the Company adopts the straight-line
method based on an expected usage period of five years for internal use.

3. Criteria for recording reserves(1) Provision for directors’ retirement benefits
The Company records required allowance as of the end of the term inaccordance with internal rules on payment of directors’ retirement benefits toprepare for the payment of retirement benefits to directors.
4. Treatment of consumption tax, etc.
The accounting treatment of consumption tax and local consumption tax is based on tax exclusion
method.

5. Inclusion of interest payable, etc. in noncurrent assets acquisition cost
The interest payable and loan-related ancillary cost incurred during the construction of the passenger
terminal building have been added to the acquisition cost (for the fiscal year under review – 2 millionyen; cumulative at the end of the fiscal year under review -- 3,382 million yen) and recorded as part ofnoncurrent assets.
6. Hedge accounting method(1) Hedge accounting method:

Deferred hedge treatment(2) Hedge procedure and hedge target- Hedge procedure:

Derivative trading (interest swap trading)- Items hedged:

Borrowings based on variable interest rate(3) Hedge policy:

It is carried out with the aim of avoiding risks rising from future fluctuation ofinterest rate and the Company’s policy is not to carry out any speculativetransactions.

(4) Method to evaluate the hedge effectivenessThe assessment on the effectiveness is omitted, as the important conditions forhedge procedures and hedge target are the same and it is assumed in advance tofully offset the risk of interest rate fluctuations from the start of the hedge andcontinuously thereafter.

3<Additional information>[Application of Implementation Guidance on Recoverability of Deferred Tax Assets]“Implementation Guidance on Recoverability of Deferred Tax Assets” (Corporate Accounting Standard
Guideline No. 26, March 28, 2016) is applied from this fiscal year.

II. Notes on Balance Sheet(Miliions of yen)

1. The amounts are rounded down to the nearest million.
2. Pledged assets
Assets pledged as collateral
Ordinary deposits

36,225

Accounts receivable - trade59

Buildings

95,744Structures

1,286

Machinery and equipment

5,822

Separately managed penalty in trust
1,000
Liabilities corresponding to the above
Current portion of long-term debt

5,292

Long-term loans payable

89,157

3. Total depreciation of property, plant and equipment

51,938

4. Monetary claims and obligations to subsidiaries and affiliates
Monetary claims

Accounts receivable – trade
Accounts receivable – other

Monetary obligations Accounts payable – trade

73
14
2,916

Accrued expenses

2,055

Shareholder subordinated bonds

6,660

Long-term loans payable
Long-term lease deposited

6,660
261

III. Notes on Income Statement(Miliions of yen)

1. The amounts are rounded down to the nearest million.
2. Transactions with subsidiaries and affiliates
Operating transactions
Non-operating transactions

449,185299

Ⅳ. Notes on Tax Effect Accounting
Breakdown of main causes for deferred tax assets(Deferred tax assets)(Miliions of yen)Accrued enterprise tax, etc.

92

Provision

13for

directors'

retirement benefits
Deferred losses on hedges

2,099

Other225

Deferred tax assets subtotal

2,431

Valuation reserve△13

Deferred tax assets total

2,418

V. Notes on Related Party Transaction
1.

Main corporate shareholders etc.
(Miliions of yen)

TypeName ofthecompanyetc.

Ratio ofvoting
rights andotherownership

Relationshipwith theparty

Transactions

Transaction
value

Account title

Balanceat theterm-end

Financing (Note－

Shareholder
subordinatedbonds;

6,660

1);

Japan
Other relatedcompany

AirportTerminalCo., Ltd

38.78%;
directly
held

Procurementof goods andconsignmentof operation ofstores etc.: anddouble-hattingof directors

Borrowing offunds (Note 2);
Businessconsignment(Note 3);
Procurement ofgoods (Note 4)－15,679
31,666Long-term loans
payable;6,660

Accruedexpenses;
Accounts
payable—trade

2,055
2,916Financing (NoteMain
shareholderJapanAirlinesCo., Ltd.

－1);

19.36%;
directly held

Borrowing offunds (Note 2);－－Shareholder
subordinatedbonds;
Long-term loans

Financing (NoteMain
shareholder

ANAHoldings
Inc.

－1);

19.36%;
directly held

Borrowing offunds (Note 2);－－Shareholder
subordinatedbonds;
Long-term loans

Terms and conditions of transactions and policy on determining them
Note 1: Financing terms and conditions are in accordance with the Shareholder Subordinated Bond
Agreement signed between the Company and its six shareholders including the above three

53,330

3,330
3,330

3,330

companies on March 30, 2012 following the approval by the Board of Directors Meeting onFebruary 23, 2012 (prepared based on the loan terms of the Shareholders Agreement agreed among
the shareholders as of the establishment of the Company).
As for the repayment of the principal, it has been agreed that the order of the settlement of claims
is after that of repayment of preferred loans from the lenders based on the Limited Loan Contract
Alteration Contract signed with the lenders.
Note 2: Loan terms and conditions are in accordance with the Shareholder Subordinated Loan Agreement
signed between the Company and its nine shareholders including the above three companies onMarch 27, 2008 following the approval by the Board of Directors Meeting on March 18, 2008
(prepared based on the loan terms of the Shareholders Agreement agreed among the shareholders
as of the establishment of the Company). As for the repayment of the principal, it has been agreed
that the order of the settlement of claims is after that of repayment of preferred loans from thelenders based on the Limited Loan Contract Alteration Contract signed with the lenders.
Note 3: The business consignment terms and conditions are determined as in the cases of any other similartransactions conducted generally.
Note 4: The terms and conditions for procurement of goods are determined as in the cases of any othersimilar transactions conducted generally.
Note 5: Among the amounts indicated in the table above, transaction amounts do not include consumption
tax.
Note 6: The ratios of voting rights and other ownership are rounded down to the nearest two decimal places.
2. Directors, main individual shareholders, etc.
(Miliions of yen)

TypeName ofthe person,company
etc.

Business or
profession

Ratio ofvoting
rights andotherownership

RelationshipTransactions
with theparty

Transaction
value

Account
title

Balance attheterm-end

Borrowing offunds(Note 1)－Long-term
loans

1,260

Borrowing offunds(Note 2)－Long-term
loans

1,620

Director at ourcompany;

Director

Tomoaki
Kobayakawa

Representative
Director andPresident,
TEPCO
EnergyPartner,
Incorporated－

Borrowingof funds－

Borrowingof funds

Director at ourcompany;

Director

Masaki Saida

Representative
Director andSenior
Executive
President,
NaritaInternational
AirportCorporationTerms and conditions of transactions and policy on determining them
Note 1: This transaction was conducted for a third party by Tomoaki Kobayakawa, director at our company,in the capacity of the representative of TEPCO Energy Partner Incorporated. The borrowing rate was6determined rationally based on market interest rates and transaction terms and conditions.
Note 2: This transaction was conducted for a third party that was conducted by Masaki Saida, director at ourcompany, in the capacity of the representative of Narita International Airport Corporation. The borrowing
rate was determined rationally based on market interest rates and transaction terms and conditions.
Note 3: Among the amounts indicated in the table above, transaction amounts do not include consumptiontax.
Ⅵ. Notes on data per share
1.

Net asset per share:

4,170,443.98 yen

2.

Current net profit per share:

1,491,682.82 yen

7