PRESS RELEASE
December 10, 2019

FY2019 Mid-year Consolidated Financial Results
YoY growth achieved in both revenue and profit～サブタイトル～Kansai Airports today announced its consolidated financial results for the six months ended
September 30, 2019, posting operating revenues of 119.8 billion yen, operating income of 36.2
billion yen, ordinary income of 30.8 billion yen, and net profit of 25.5 billion yen.
Despite weak demand for air travel to and from South Korea and Hong Kong, the operating
revenues and operating income grew 14% and 36% respectively from last year driven by strong
air travel demand—particularly to and from China—coupled with a rebound from the impact oflast year's Typhoon Jebi. In addition, because typhoon-related insurance claims received wererecorded in extraordinary gains and losses, net profit rose significantly by 122%.
Last year’s operating revenues and operating income were weighted down by a loss of 8.2 billion
yen and 6.4 billion yen respectively due to the impact of the typhoon. Even when excluding thetyhoon effect, the first half of fiscal 2019 saw year-on-year growth in both revenues and profits.
Consolidated Profit and Loss Statement
Item(in billion yen)

Apr. 2018-

Apr. 2019-

Increase

ChangeSep. 2018

Sep. 2019(Decrease)(％)

Operating Revenues

104.9

119.8

14.9

+14%

Operating Expenses（58.6)（63.5)

(4.9)

+8%

46.4

56.3

10.0

+22%

（19.7)（20.2)(0.4)+2%

Operating Income

26.6

36.2

9.6

+36%

Ordinary Income

20.9

30.8

9.9

+47%

Net Profit1

11.4

25.5

14.0

+122%

EBITDA
Depreciation & Amortization

1

Net Profit: Net Profit Attributable to Company Shareholders

Aviation Demand
Aircraft movements at KIX reached a record high for the first half-year period due primarily to anincrease in new and additional services to and from China and Southeast Asia, offsetting adecrease in the number of flights to and from South Korea. Aircraft traffic at ITAMI slightly grew,and KOBE’s traffic also edged up, aided by deregulation. As a result, total aircraft movements forthe three airports amounted to 191,000.
Passenger traffic at KIX for the first half of fiscal 2019 reached a record high of 16.34 million,
with foreign passengers on international flights hitting an all-time high for the eighth consecutive
year and Japanese passengers on international flights exceeding the previous year's record for
four years in a row. Passenger numbers at ITAMI recorded a year-on-year increase for the fourthstraight year, while KOBE marked a 6% increase over the previous year due mainly to the effects
of deregulation. The total number of passengers for the three airports combined stood at a record
26.44 million for the first half of of the year.

Item
ATMs (in thousands)

Apr. 2018-

Apr. 2019-

Increase

ChangeSep. 2018

Sep. 2019(Decrease)

(%)

174

191

17

+10％

KIX

90

106

16

+18％

ITAMI

69

70

1

+1％

KOBE

15

16

1

+6％

23.72

26.44

2.72

+11％

KIX

13.91

16.34

2.43

+17％

ITAMI

8.19

8.39

0.20

+2％

KOBE

1.61

1.70

0.09

+6％

PAX (in millions)

Consolidated Balance Sheet
Both assets and liabilities as of September 30, 2019 decreased from the previous fiscal yearend as we made progress in the payment of liabilities for the operating rights as well as theamortization of the operating rights. As a result, the total assets and liabilities were 1,731.2
billion yen and 1,630.0 billion yen, respectively.
(in billion yen)
Item

Increase

As of Mar. 31, 2019

As of Sep. 30, 2019

176.4

169.9

(6.5)

1,580.9

1,561.4(19.5)

1,757.3

1,731.2（26.0）

81.5

69.2(12.3)

Non-current Liabilities

1,581.8

1,560.8(21.0)

Total Liabilities

1,663.3

1,630.0（33.3）

Shareholders' Equity

93.2

100.6

7.5

Other Comprehensive Income

Current Assets
Non-current Assets
Total Assets
Current Liabilities(Decrease)

(0.5)

(0.8)

(0.3)

Non-controlling Interests

1.3

1.5

0.2

Total Net Assets

94.0

101.3

7.3

1,757.3

1,731.2（26.0）

Total Liabilities and Net Assets

[Reference] Consolidated Financial Results

Operating Revenues Full year (Apr-Mar)（in billion yen）

First half (Apr-Sep)

250
200

206.4

220.4

180.2

(2.7)

150
89.1

100

104.9

99.3

(1.3)

119.8
(1.4)

50
0
FY2016FY2017FY2018FY2019Figures in parentheses represent KAP Kobe’s results

EBITDA(in billion yen)

Full year (Apr-Mar)First half (Apr-Sep)

120

80

97.1

91.4

100

(1.0)

76.9

60

39.5

46.4

46.4

40

(0.6)

56.3
(0.6)

20
0
FY2016FY2017FY2018FY2019Figures in parentheses represent KAP Kobe’s results

Net Profit*(in billion yen)First half (Apr-Sep)

35
28.3

30

15
10

29.6
(0.3)

25
20

Full year (Apr-Mar)

16.9

25.5
(0.2)

14.8
11.4

9.2

(0.2)

5
0
FY2016FY2017FY2018FY2019Figures in parentheses represent KAP KOBE’s results*”Net Profit” represents “Net Profit attributable to Company

Contact Information
Corporate Communications
Planning & Administration
TEL: +81-72-455-2201

Consolidated Profit and Loss Statement
From April 1, 2019 to September 30, 2019

(Unit: Million yen)
Operating revenues

119,806

Operating expenses

71,726Gross operating profit

48,079Selling, general and administrative expenses

11,915

Operating income

36,164Non-operating income

723

Interest income and dividends

355

Share of profit of entities accounted for using the equity
method83

Other non-operating income

284

Non-operating expenses

6,124Interest expense

6,064

Commissions

50

Other non-operating expense

9

Ordinary income

30,763Special gain

9,182

Gain on sales of non-current assets
Subsidies received
Insurance claims for disaster

0
339
8,842

Special loss

3,006

Loss on retirement of non-current assets

58

Loss on sale of fixed assets

0

Fixed asset advanced depreciation deduction

330

Removal cost related to replacement investment

372

Loss on disaster

678

Provision of allowance for loss on disaster
Loss on branch closings

1,386
179

Profit before income taxes

36,939

Income taxes-current

10,882

Income taxes-deferred

437

Profit25,618

Profit attributable to non-controlling interests

168

Profit attributable to owners of the parent

25,450Figures under one million yen are rounded down to the nearest million.

Consolidated Balance Sheet
As of September 30, 2019
(Unit: Million yen)

AssetsCurrent assets

Liabilities
169,884

Current liabilities

69,208Cash and deposits

123,636

Accounts payable - trade4,114

Notes and accounts receivable-trade

10,871

Accounts payable - other

7,786

Merchandise inventories

6,003

Accrued expenses

3,976

Raw materials and supplies

1,195

Guarantee deposits refundable
within one year

13,304

Accounts receivable - other

10,518

Income taxes payable

10,537

Other

4,354

Provision for bonuses

1,147

Allowance for doubtful accounts

Non-current assets－

Current portion of long-term loans
payableCurrent portion of liabilities for theright to operate public facilities

Provision for point card certificates

92
1,741

Other

6,857

Non-current liabilities

Property, plant and equipment

27,122

Bonds payable

Buildings and structures

3,927

Long-term loans payable

10,008

Liabilities for the right to operate
public facilities

Land

29,687

Provision for loss on disaster

1,561,363

Machinery, equipment andvehicles

3,267

1,560,773
4,860
166,619
1,327,242

603

Provision for special repairs

47,530Construction in progress

6,346

Provision for loss on disaster

448

Other

6,236

Liability for retirement benefits

4,437

Other

9,636

Intangible assets

1,423,569

Right to operate public facilities

1,400,147

Replacement investment assets

22,153

Other

1,268

Total liabilities

1,629,982

Net assets

Investments and other assets

110,671

Shareholders' equity

100,620

Investment securities

1,418

Capital stock

25,000219

Capital surplus

25,000Retained earnings

50,620Asset for retirement benefits
Guarantee deposits

101,740

Deferred tax assets

7,141

Accumulated other comprehensive

Other

159

Valuation difference on available-forsale securities

Allowance for doubtful accounts△8

Deferred gains or losses on hedge
Non-controlling interests
Total net assets

Total assets

1,731,247

Figures under one million yen are rounded down to the nearest million.

Total liabilities and net assets

△ 806
28
△ 835
1,451
101,265
1,731,247

Kansai Airports was established by a consortium made up of VINCI Airports and ORIX Corporation as its core
members. Kansai Airports took over the operations of Kansai International Airport (“KIX”) and Osaka International
Airport (“ITAMI”) from New Kansai International Airport Company (“NKIAC”) and has been operating the two
airports since April 1, 2016.
Kansai Airports Kobe, Kansai Airports’ wholly-owned subsidiary, took over the operations of Kobe Airport (“KOBE”)
from Kobe City and started its business as an operating company on April 1, 2018.
Under the concept of “One Kansai Airports Group”, Kansai Airports group strives to continuously improve its
services for all airport guests through appropriate investments and efficient operations, with safety and security
being the top priority. Kansai Airports group aims to maximize the potential of the three airports, for the benefitof the communities they serve.
For more information, please visit：http://www.kansai-airports.co.jp/en/

Kansai Airports
Location

1-banchi, Senshu-kuko kita, Izumisanoshi, Osaka

Shareholders

ORIX 40%,VINCI Airports 40%,
Other investors 20%1

Company
Representatives

Representative Director and CEO:Yoshiyuki Yamaya
Representative Director and Co-CEO: Benoit Rulleau

Business Scope

Operation and management services, etc. of Kansai International Airport and Osaka
International Airport

Kansai Airports Kobe
Location

1-ban, Kobe-kuko, Chuo-ku, Kobe-shi,
Hyogo

Shareholder

Company
Representatives

Representative Director and CEO: Yoshiyuki Yamaya
Representative Director and Co-CEO: Benoit Rulleau

Business Scope

Operation and management services, etc. of Kobe Airport

Kansai Airports 100％

ORIX Corporation (TSE: 8591; NYSE: IX) is an opportunistic, diversified, innovation-driven global powerhousewith a proven track record of profitability. Established in 1964, ORIX at present operates a diverse portfolio of
businesses in the operations, financial services, and investment spaces. ORIX’s highly complementary businessactivities span industries including: energy, private equity, infrastructure, automotive, ship and aircraft, real estate
and retail financial services. ORIX has also spread its business globally by establishing locations in a total of 37
countries and regions across the world. Through its business activities, ORIX has long been committed tocorporate citizenship and environmental sustainability. For more details, please visit our website:
http://www.orix.co.jp/grp/en/

VINCI Airports, as the leading private airport operator in the world, manages the development and operation of
46 airports located in France, Portugal, the United Kingdom, Sweden, Serbia, Cambodia, Japan, the United States,
Dominican Republic, Costa Rica, Chile and Brazil. Served by around 250 airlines, VINCI Airports' network handled
240 million passengers in 2018.
Through its expertise as a comprehensive integrator, VINCI Airports develops, finances, builds and operates
airports, leveraging its investment capability, international network and know-how to optimize the management
and performance of existing airport infrastructure, facility extensions and new-build construction projects. In 2018,its annual revenue for managed activities amounted to €3.6 billion, for consolidated revenue of €1.6 billion.
More comprehensive information is available on www.vinci-airports.com
1

ASICS Corporation; Iwatani Corporation; Osaka Gas Co., Ltd.; Obayashi Corporation; OMRON Corporation; The Kansai Electric Power Company, Incorporated; KintetsuGroup Holding Co., Ltd.; Keihan Holdings Co., Ltd.; Suntory Holdings Limited; JTB Corp.; Sekisui House, Ltd.; Daikin Industries, Ltd.; Daiwa House Industry Co., Ltd.;
Takenaka Corporation; Nankai Electric Railway Co., Ltd.; NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION; Panasonic Corporation; Hankyu Hanshin Holdings,
Inc.; Rengo Co., Ltd.; The Senshu Ikeda Bank, Ltd.; Kiyo Holdings, Inc.; The Bank of Kyoto, Ltd.; THE SHIGA BANK，LTD.; The Nanto Bank, Ltd.; Nippon Life Insurance
Company; Mizuho Bank, Ltd.; Sumitomo Mitsui Trust Bank, Limited; MUFG Bank, Ltd.; Resona Bank, Limited; and the Private Finance Initiative Promotion Corporation ofJapan.

FY2019 Mid-year Consolidated Financial Results
December 10, 2019

AgendaOverview of Mid-year
Consolidated Results
Revenue Drivers

1

3空港の絵にOverview of Mid-year Consolidated Results
2

YoY Growth Achieved in Both Revenue and Profit(in billion yen)

1. Increase in demand for international airtransportation in all regions except South
Korea
2. Growth in domestic aviation demand partly
fueled by deregulation at Kobe Airport
３．Impact of Typhoon Jebi
⇒ Revenues and profit increased, even whenexcluding the effect of the rebound from thetyphoon impact**Typhoon impact: 6.4 billion yen decrease in operating income⇒ Net profit increased significantly due toinsurance claims received

Apr. 2018Sep. 2018

Apr. 2019Sep. 2019

Change％Operating
Revenues

104.9

119.8

14.9

+14%

EBITDA

46.4

56.3

10.0

+22%

Operating
Income

26.6

36.2

9.6

+36%

Ordinary
Income

20.9

30.8

9.9

+47%

Net Profit1

11.4

25.5

14.0 +122%

1“Net Profit” represents “Net Profit Attributable to Parent Company Shareholders.”3Operating Results(in billion yen)
Apr. 2018 Sep. 2018

Apr. 2019
Sep. 2019

Increase(Decrease)

Change％Typhoon impact

104.9

119.8

14.9

+14%

+8.2

Aero

42.8

49.3

6.5

+15%

+3.6

Non-Aero

62.1

70.5

8.4

+14%

+4.6

Operating Expenses (excl. D&A)

(58.6)(63.5)

(4.9)

+8%

(1.9)

EBITDA

46.4

56.3

10.0

+22%

+6.4

Depreciation & Amortization(19.7)(20.2)(0.4)+2%

Operating Income

26.6

36.2

9.6

+36%

Non-operating Profit and Loss

(5.7)

(5.4)

0.3

(6%)

Ordinary Income

20.9

30.8

9.9

+47%

+6.4

Extraordinary Profit and Loss

(4.3)

6.2

10.4

(245%)+10.3

Income Taxes, Profit/Loss Attributable toNon-controlling Interests(5.2)(11.5)

(6.3)

+122%

(5.1)

Net Profit 1

11.4

25.5

14.0

+122%

+11.6

Operating Revenues+6.4

1“Net Profit” represents “Net Profit Attributable to Parent Company Shareholders.”4

(Reference) Typhoon Impact(in billion yen)Item2018 Apr-Sep (1)2019 Apr-Sep (2)Operating Revenues

(8.2)

-

8.2

Aero

(3.6)

-

3.6

Non-Aero

(4.6)

-

4.6

Cost of Sales

1.9

-

(1.9)

(6.4)

-

6.4

0.0

8.8

8.8

Loss on Disaster/Allowance for Loss on Disaster

(3.5)

(2.1)

1.5

Total (Before Tax)

(9.9)

6.8

16.7

Subtotals (EBITDA/Operating Income)Proceeds from Disaster Insurance(2) – (1)5

EBITDA Analysis(in billion yen)
60.0
3.8

(0.9)
3.0

(2.2)
56.3

2.8

50.0

6.4
46.4

40.0

30.0
Apr. 2018

TyphoonAero

Non-Aero-Sep. 2018

impactrevenuerevenue

EBITDA

COGS

Other

Apr. 2019

cost-Sep. 2019
EBITDA

6

Balance Sheet

Right to Operate
Public Facilities(in billion yen)
As of Sep. 30,2019

176.4

169.9

(6.5)

1,580.9

1,561.4(19.5)

1,757.3

1,731.2(26.0)

81.5

69.2(12.3)

1,581.8

1,560.8(21.0)

1,663.3

1,630.0(33.3)

Shareholders' Equity

93.2

100.6

7.5

Other Comprehensive Income

(0.5)

(0.8)

(0.3)

Non-controlling Interests

1.3

1.5

0.2

94.0

101.3

7.3

1,757.3

1,731.2(26.0)

Current Assets
Non-current Assets
TOTAL ASSETS
Current Liabilities

Debts Concerning
Right to Operate
Public Facilities

Increase(Decrease)

As of Mar. 31,2019

Non-current Liabilities
TOTAL LIABILITIESTOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

7

Revenue Drivers
8

[Aero] H1 Record-high Aircraft & Passenger Traffic for 3 Airports Combined
 Aircraft movements and passenger traffic for
all three airports combined marked a record
high for the first half-year period (H1)boosted by the rebound from last year’s
disaster events.
 KIX: Record-breaking passenger traffic for
H1. Aircraft movements exceeded
100,000 for the first time in H1.
 ITAMI passengers: Up 2% YoY
 KOBE passengers: All-time high for H1 with
6% YoY increase

Apr. 2018Sep. 2018

Apr. 2019Sep. 2019

174

191

17 +10%

KIX

90

106

16 +18%

ITAMI

69

70

1

+1%

KOBE

15

16

1

+6%

Passengers(in millions)

23.72

26.44

2.72 +11%

KIX

13.91

16.34

2.43 +17%

Int’l flight pax

10.76

12.76

2.00

+19%

Japanese

3.25

3.98

0.73

+22%

Non-Japanese

7.41

8.67

1.26

+17%

ITAMI

8.19

8.39

0.20

+2%

KOBE

1.61

1.70

0.09

+6%

ATMs
(in thousands)

Change％9

[Aero] KIX Achieves Strong Int’l Passenger Gains
Demand for travel from China and Southeast Asia to Japan remained strong, offsetting weak demand forflights to/from South Korea.
Long-haul flights maintained an upward trend with new services and increased flight frequencies to Europe
and North America.
H1 FY2019 int’l pax YoY change by region

H1 FY2019 int’l pax share by region

4%

5%

2% 2%

60%
50%

21%

11%

52%

40%

10%
16%

29%

32%

30%

20%

20%

34%

33%

Oceania &Guam

Others

15%

8%

10%

2%

0%
South Korea
Southeast Asia
Hong Kong, Macau
North America (incl. Hawaii)
OthersChina
TaiwanEuropeOceania, Guam

-10%

-7%

South Korea

China

Southeast Asia

TaiwanHong Kong &Macau

EuropeNorth America(incl. Hawaii)*Others include India, Nepal, the Middle East, and Far East Asia

Source: Kansai Airports Traffic Report10[Aero] New Routes & Flight Increases in H1 FY2019
International (New routes)

Domestic (New routes & flight increases)
Seattle (Apr 2) 7/w

Kathmandu (Aug 29) 3/w
London (Apr 1) 4/w

Taiyuan (Mar 31)

3/w New Route

Qingdao (Mar 31)

7/w

Hefei (Apr 17)

4/w New Route

KOBE-Ibaraki (Aug 1)

2→3/day

KOBE-Nagasaki (Aug 1)

3→4/day

KOBE-Naha (Aug 1)

3→4/day

Zhengzhou (Apr 17) 3/w

Manila (Jul 1) 7/w
New Airline
Bangkok (Don Mueang) (Mar 28) 5/w
New Airline

Changsha (Jul 1)

7/w

Xi'an (Jul 1)

3/w

KIX-Shimojishima (Jul 3) 0→4/w*7/w from Jul 20 to Aug 31

New Route*The dates in parentheses represent the launch dates of new and increased services.

11[Aero] Long-haul Network Expansion
Network has been expanding with launches of long-haul flights

2017 S/W
AirAsia X
launched service to
Honolulu

Qantas Airways
launched service toSydney2018 S/W
Emirates
introduced A380

2019 S/W

2020 S/W

British Airways
launched service toLondonQatar Airways
to launch service to
Doha

Delta Air Lines
launched service toSeattleTurkish Airlines
to launch service toIstanbul

Swiss International Air Lines
to launch service to
Zurich12

[Aero] KIX Int’l Cargo Volume and Trade Value Outperforming Last Yearwith Strong Pharmaceutical Handling
KIX int’l cargo volume for H1
down 4% YoY to 370,000 tons

Initiatives to improve pharmaceutical cargo handling
KIX Pharma Community acquired CEIV Pharma certification（Jun. 2019)

Cargo volume in H1 FY16 – FY19
TTL

(in thousand tons)

4,713

500
450

Value
4,265

4,216

(in billion yen)

4,551

5,000

(+7%)

4,500

400

4,000

350

3,500

300

3,000

600

250

2,500

500

2,000

400

1,500

300

200

150

350

405

389

372
(-4%)

100

1,000

50

500

0

0
2016

2017

2018

2019

Pharmaceutical handling value in H1 FY17 – FY19
(in billion yen)

533
396

385

2017

2018

Export Value

Import Value

200
100
0
2019
TTL

Source: Kansai Airports Traffic Report, Osaka Customs

13

[Non-Aero] Strong Revenue Growth Achieved record-high revenue of 70.5 billion yen thanks to steady growth in spending by Chinese Duty-free sales rose 21% YoY, a key driver for non-aero revenues
 Chinese accounted for 76% of duty-free sales with high average transaction and penetration rate
FY2019 Non-Aero Revenue Growth (%)（in billion yen）
80

70

62.1

60
50
40
30
20
10

70.5

FY2019 Duty-Free Sales by Nationality* (%)
Other

South

8%

Korean
4%

12%

Other

Japanese
12%

Retail
F&B

1%

Duty-free
shops

21%

2018

2019

Chinese76%*Direct duty-free shops only

014

[Non-Aero] Opened New Shops Meeting High Customer Needs
 Opened new shops in FY2019 to meet high customer needs in KIX
 More shopping/dining offerings in landside and airside including direct duty-free shops “PLEATS PLEASE ISSEYMIYAKE / BAO BAO ISSEY MIYAKE” and “CLÉ DE PEAU BEAUTÉ”
 “TORY BURCH” opened on Dec 1, 2019
 At ITAMI, the multi-story parking structure was renovated in April and Rental Car Station opened in July
KIX

2019/4/24
OPEN

È PRONTO

2019/4/25
OPEN

PLEATS PLEASE ISSEY MIYAKEBAO BAO ISSEY MIYAKE

From Jun 1, 2019
4 shops sequentially OPEN

2019/9/26
OPEN

Currency Exchange TRAVELEX

NAKAU

2019/5/16
OPEN

CLÉ DE PEAU BEAUTÉ
2019/12/1
OPEN

TORY BURCH

ITAMI

2019/4/27
OPEN

North parking structure
2019/7/8
OPEN

Rental Car Station

15

The Percentages of Aero and Non-Aero Revenues Remain Unchanged
 Non-Aero revenue share: 59%, same as the previous year Aero: ¥6.5 billion increase thanks mainly to increased passenger traffic and aircraft movements
 Non-Aero: ¥8.4 billion increase mainly driven by revenue from duty-free shops
H1 FY2019

H1 FY2018¥62.1bn59%¥42.8bn
41%¥70.5bn＋¥8.4bn59%

Total ¥104.9bn¥49.3bn+¥6.5bn41%

Aero
Non-Aero

Total ¥119.8bn
16