NAA Group
Mid- to Long-Term
Management Plan

Narita International Airport Corporation0Contents
1. Summary of the Previous Mid-term Management Plan
(FY2016 – 2018)
2. Business Environment Surrounding Narita Airport

3. The Mid-term Management Plan (FY2019 - FY2021)
 Strategic Policies & Key Strategies
4.

5.

Our Vision for the Narita Airport’s next stage
Long-Term Management Plan
Management Targets

1Summary of the Previous Mid-termManagement Plan (FY2016-2018)2

Summary of the Previous Mid-term Management Plan (FY2016-2018)
 Major Initiatives under the 5 Strategic Policies in the Previous Mid-term Management Plan
I. In pursuit of World's Highest Standards in Safety and Stability of the Overall Airport Operation✈ Opening of “Narita Airport Operations Center” to establish a organizational structure for the Crisis Management and Operational Safety Management.
✈ Strengthen aviation security by deploying Advanced Imaging Technologies (AIT) devices and others to detect threat objects carried on persons
entering airport sterile areas.
✈ Towards achieving the Triple Zero (no aircraft accidents, no fatal facility and system failure, no terrorism). Prevention of runway incursions and collapse of
facility ceiling panels, etc.

II. Develop Airport Capacity Enhancements in harmony for the Prosperous Coexistence with the Local Communities.
✈ Reaching agreement in the “Four Party Council on Narita Airport” to further enhance capacity. Commitment for the agreed items.
✈ Optimizing the position of Rapid Exit Taxiways to suit the aircraft mix at Narita Airport to increase the hourly runway movements to
72 before the 2020 Summer schedule season.
✈ Steady progress in the reduction of greenhouse gases to achieve 7% reduction in 2020.

III. Strengthen the Flight Service Network Expansion✈ Strengthen marketing activities to attract new routes and fight frequency utilizing the Marketing and Hub Promotional Incentives.
I: Connected with 115 international and 22 domestic destinations. Achieved the target for domestic destinations.
II: Achieve to reach 30% LCC flight share at Narita Airport.
III: Expected to achieve 43 million annual (fiscal) year passenger target. Achieved 2.1 million tonnes of cargo target

IV. Pursue to improve Customer Satisfaction by offering the World's Highest Standards of Service
Quality and by Creating Attractive Retail Sales Spaces.
✈ Implementing Fast Travel Initiatives : Realigning Common Use Self-Service (CUSS) kiosk, deploying Common Use Bag-Drop (CUBD).
Deploy Smart Security Lanes by the end of FY2019.
✈ Towards the Olympic and Paralympic Games Tokyo 2020: Promote use of the Universal Design concept. Improve passenger terminals functionalities.
✈ Other: Arrival concourse atmosphere improvements, Japanese cultural experience zone, installation of information terminals Visitor Service Center etc.

V. Incrreaase Competitiveness and Strengthen Management Vitality as a Corporate Group.
✈ Strengthen Earnings Capacity foundation of the Retail Sales Business: Reallocation of new retail shops and stores area and expansion of the commercial
facility space has greatly contributed to the incremental revenue of the NAA’s Retail Sales Business.
✈ Reorganization and Consolidation of NAA Group companies: Consolidating Narita Airport Logistics Co. (NAAL) with Green Port Agency Co., etc. toreorganize the NAA Group companies to streamline corporate group management.

3

Summary of the Previous Mid-term Management Plan
Major outputs for Fiscals 2016 to 2018 period
 Regarding the handling volume, the Total Passenger Traffic is expected to meet our targets, however the flightvolume in number of annual Aircraft Movement (slot usage) is to remain at 256,000 movements in FY2018 which
is below our expectation due to a more number of international flights has shifted its operation to Haneda Airport
after the second round of allocation of the newly available international slots.
 Regarding the Operating Results, the revenue from the Airport Duty-Free, Merchandising and Food and Beverage
Sales Business will be little below the 150 billion yen target but with the favorable steady inbound tourism, we
expect to achieve our targets for consolidated operating income of 51.5 billion yen and 6.3% consolidated ROA.
 As a result of a committed pursuit of management efficiency with emphasis on cashflow management, we expect
to achieve the targeted consolidated long-term debt to consolidated operating cash flow ratio of 5.6.

Management Target Achievements
Category

Target

FY2018 Forecast

Aircraft movements

270,000 flts.

256,000

Passenger numbers

43 million

43.09 million

Consolidated ROA

5.5% or higher(Up to February are actualand estimate for March)

Handling Volume

Consolidated operating income
Management targets

Consolidated long term debt balance

Consolidated long term debt balance/consolidated operating CF ratio

Facility investment

6.3%(As above)(Through year estimate
upon FY2018 interim result)

JPY49 billion or more

JPY51.5 billion(As above)

Lower JPY450 billion range

JPY392.0 billion(As above)

5.6(As above)

6.2 or less

Revenue from airport duty-free shops, merchandise outlets andrestaurants

JPY150 billion

JPY143.8 billion(As above)

Capital Investment Plan (accumulative total for fiscals 2016 to 2018)

JPY160 billion

JPY113.7 billion(As above)4

Business Environment Surrounding
Narita Airport

5

Economic & Social Trends
Rising demand for travel to Japan

Global Economic Risk Factors● Intensifying
trade friction● Politicalunrest inEurope● Chinese
economic
deceleration

 Increase in inbound demand from Asia
 Enthronement Ceremony Rugby World Cup
 Olympic and Paralympic Games Tokyo 2020

● Situation in the Middle
East
Rising oil prices
Risk● Emerging
economy concerns

Environmental and social governancesought of corporations

preparation
and response

Streamlined
inboundprocessing

Environmental
and social
governancerequirements● Rising resource and environmental constraints※
Environment ● Practice of ESG managemen
Society

Governance※ SDG-conscious sustainable growth:

Sustainable Development Goals

Narita International
AirportIncreasing Natural Disaster Risks
Greater than expected increase in major disasters
Typhoon 21: Kansai Airport damaged

New stage
in disaster
response
Securing
labor

Challenge
next
generation
innovation

Population decline

Hokkaido earthquake: New Chitose Airport damage● Low birthrate and aging society● Major earthquakes expectedunder Tokyo, in the Nankai
trough, etc.

Compiled from Cabinet Officesurvey:● Nationwide
decrease in workingage population● Consumer
stagnation due toshrinking domestic
markets

Social changes brought
about by cutting-edge technology● High-speed, high-capacity communication (5G)
 Aggregation of information by
Internet of Things (Big Data) Next-generation ICT innovations
Inflrmation & Communcation
Technology● Artificial intelligence (AI)● Forward movement to "Society 5.0"

* ESG stands for Environment, Social and Governance, factorsthat should be emphasized by companies for sustainable growth* Sustainable development goals are common goals for a sustainableinternational community

6

Global Air Passenger Traffic and Rising Demand forTourism to Japan
Global Passenger Traffic Forecast (2018 to 2037)
6,996

4,004

Worldwide+4.5％ per year

2,371
1,910

3,325
1,782

736

Europe+3.8％ per year
171

Middle East
+6.0％ per year

2,474

361

North America+3.2％ per year

Legend: Units: Billion
passenger kilometers
2037
2017
Passenger
Passenger
traffic
traffic(Estimate)(Actual)

408

1,051

Asia-Pacific
Latin America
Avg. annual growth rate in+5.3％ per+4.8％ per year
the same period
year
Passenger Traffic in Asia Expected to Grow at a Rate of 5% Per Year Over the Next 20 Years
Africa
+3.8％ per year

※Source Japan Aircraft Development Corporation

Provide a Welcoming Environment(visa exemptions and deregulation, etc.)

Increasing Visitors are mainly from China,
East Asia and Southeast Asia

Japan
Gov't

Make Tourism
a Key Industry!

Foreign Visitor Traffic Targets
2020
40 million

2030
60 million

Foreign Visitor
Consumption Targets
2020
JPY8
trillion

2030
JPY15
trillion

Continued Growth in Tourism toJapan
7

Airport & Airline Industry Trends① Changes in the Air Transport Industry
Diversifying Airline Business Model
Diversification of corporate strategies (FSC)

LCC growth

Alliance partners
make use of ATI(antitrust
immunity)① Growth in LCCs as the mainstay
on short-haul Asian routes

Increased
partnerships
across alliancesand between
FSCs and LCCs
Shift towards nonstop direct flight
services on AsiaTranspacific Routes

At Narita, Domestic LCCs expanding
flight service network to covershort-haul Asian routes.
Present LCC ratio

Over 30%

LCC ratio at 500,000
flights per year

About 50%

Introduction ofgreenhouse gas
emission regulations
by ICAO② Expansion of LCCs into new markets
on medium to long-haul routes
 JAL establishes medium to longhaul international LCC, ZIPAIR
 Peach Aviation and Vanilla Air
integrate and launch into
medium to long-haul routes
 Increased range and lower fuelconsumption with improved
aircraft performance

Growth in Air Freight
Global Trade willcontinue growing trend.
(WTO Survey)

Need for speed and stability
underscores growth in airfreight shipments of automobile
parts, electronic components
and chemicals, etc.

Increasing cargo traffic
between production
centers in Asia andconsumer centers in
Europe and America8Airport & Airline Industry Trends① Competition Between Airports
Intensifying competition

Key Asian airports have major expansion projects underway with plans for
extremely large handling capacity




China
Beijing Daxing
International Airport

Aircraftmovements per
year
Passengers per
year
No. of runways

24-hour
OperationPresent

Planned (2025)

500,000

76 slots

74 million

120 million

45South Korea
Incheon Airport

24-hour
Operation

Planned (initial)

Planned(Long term)

62 slots

880,000

72 million

100 million

46

2018: Terminal 2 in service
2023: Expansion of Terminal 2, 4th runway inservice
Present
Estimated
Aircraft movements
390,000
79 slotsper year
Passengers per year
68 million
100 million

No. of runways

Singapore
Changi Airport

Present

Planned390,000

Unknown

Passengers per year 65.63 million
No. of runways

24-hour
Operation

China
Hong Kong Airport

24-hour
Operation

2019: Jewel complex open
Early 2020s: Extension of 3 rd Runway(currently military) and completion of dual
military-civilian purpose specifications

Aircraft movements
per year

24-hour
Operation

2019: Opening of airport (4 runways)

Aircraftmovements per
year
Passengers per
year
No. of runways



2017: 5th runway completed
2019: Satellite terminal in service
2025: Terminal 3 completed

Opportunity to capture
growing passenger market

China
Shanghai Pudong Airport

2

135 million
33◎ Further expansion of capacity at
metropolitan airports

Haneda Airport

2024: North runway extended, 3 rd Runway
in service, Terminal 2 extended, Terminal 3
in service
Present

PlannedAircraft movements per
year

430,000

102 per hour

Passengers per year

74.70 million

100 million

No. of runways

2

3

5



24-hour
Operation

2020: International slot increase

Aircraftmovements per
year
Passengers per
year
No. of runways

Present

Planned

447,000 flts.

Approx.
487,000

85.67 million

－

4

4

+ Combined with capacity enhancement at Narita Airport⇒ 1 million slots per year at Tokyo's metropolitan airports(Source: Airport websites and press releases)

9

Fiscals 2019 to 2021
NAA Group Mid-term Management Plan –Leap Forward to 2021

10

Mid-term Management Plan (FY2019 - FY2021)（Strategic Policies & Key Strategies）

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Essential Component of the Mid-term Management Plan
The New Mid-term Management Plan comprises 6 strategic policies under 3 principal themes

Principal Themes

Airport Operational Safety ( Top Priority )Challenge intensifying
competition between
airports

Commitment toCustomer First

DigitalInnovation

1. “Airport Operation”
Pursue Highest World
Standard for Safety, Stability
and Efficiency.
6. “Airport Competitiveness”
Strengthen to achievesustainable growth

5. “Retail Business”
Rapidly adapt to the diversifying
customer needs and create an
attractive retail space.

6 Strategic Policies

4. “Customer Experience”
Placing “Customer First” as
the motto to create highest
global standard in services.

2. “Airport Functionality”
Bring Improvements incoexistence and mutual prosperity
with the local communities

3. “Flight Network”
Expand Narita flight network.
It is the foundation of
airport’s competitiveness.

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1. In Pursuit of World’s Highest Standards in Safety, Stability
and Efficiency in Airport Operations. (1 of 2)
1.Pursuing the World's Highest Standards in Safety and Stability of Airport Operations
As a part of the national transport infrastructure responsible for moving people and goods, Narita Airport must remain totallycommitted to bolstering its preparedness for unexpected natural disasters and pursuing the world's highest standards in safety andstability in the airport operations into the future.

Direction of Initiatives to FY2021

Preparedness for Unexpected Natural Disasters
Compile Narita Airport BCP(Business Continuity Plan) to establish a contingency plan toresume the airport operation within 24 hours after any occurrence of disasters.
Plan for Narita Airport’s 72 hours continuous operational readiness to keep the airport
open to support initial response to a crisis in times of severe natural disaster in themetropolitan area.
Establish a mechanism for real-time information gathering and sharing system toquickly respond to a situation.
Reinforce disaster response systems (providing alternative airport access and looking
after any stranded people in the terminals, etc.)







Threat of
Severe Disaster

Resume airport operations
within 24 hours
Plan for 72-hourcontinuous airport
operation

Improve Crisis Management SystemsAnti-terrorism measures
 Install advanced screening equipment (CT scanners, etc.) at security checkpoints
 Compile manuals for terrorism of CBRN(Chemical, Biological, Radiological andNuclear) attacks.
Utilize IoT(Internet of Things) function of communication to strengthen security(introduce innovative technology for management in key areas, etc.)
Strengthen cybersecurity measures and achieve compatibility with government
standardization criteria
Threat ofCyber Attack

Terrorism
ThreatStaff training andintroduction ofadvanced screening
equipment

Strengthen
cybersecurity

Commitment to Safe and Stable Airport Operations






Make use of IoT(Internet of Things), etc. for appropriate facility renovation etc.
Improve aircraft accident response capabilities and systems
 Introduce disaster response robots
 Strengthen cooperation with airlines, medical institutions and other relatedorganizations
Promote safety management with PDCA cycle
Ensure smooth handling of VIP flights and the VIPs for the Enthronement
Ceremony in October 2019

Risks Posed
Aircraftby Aging Facilities Accident Risk

Upgradefacilities

Enhancereadiness foraircraft accidents

FY2021 Target Achieve Triple Zero and adhere to airport safety and security.
 Ensure zero aircraft accidents associated with airport operations or facilities
 Ensure zero serious impact on operations from facility malfunctions
 Ensure zero serious impact on operations from failure of security measures Achieving State Aeronautical Safety Program (SSP) Goals
 Airside accidents must be below 3.12 cases per 10,000 aircraft movements.
 Incidents on runway, taxiway and apron requiring a NOTAM(Notice toAirmen) must be kept below 1 case per year.
 Aeronautical lighting electrical facility shutdowns requiring NOTAM(Notice
to Airmen) must be kept below 2 cases per year.
 Radio navigation aid facility shutdowns requiring NOTAM be kept to zero.

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1. In Pursuit of World's Highest Standards in Safety, Stability
and Efficiency in Airport Operations. (2 of 2)
2. Achieve Stable, Highly Efficient Airport Operations to meet the Increasing Demand
Strive to manage facility constraints resulting from the increasing demand for air travel by optimizing utilizationof the existing passenger terminals to maximize handling capabilities to achieve stable and highly efficient
airport operations with while maintaining highest global standard in safety.
Direction of Initiatives to FY2021

Incrasing Handling Capacity and Operation with Highl Efficiency

Shortage of Capacity with the Aircraft & Passenger Traffic Growth.
Increase Handling Capacity

Increase hourly aircraft runway
movement to 72 with realigning
the rapid exit taxiways to suitthe aircraft mix at Narita Airport.
Construct additional 23 aircraft
parking stands (Runway B southend, Terminal 2 South end,
Terminal 3 North end)
Construct holding bay at northend of Runway A (FY2022)

Operational Efficiency & Optimization of Existing Facilities
Optimize Airport Operations

Optimal Use of Facilities

 Enhance airport operational capacity by implementing
Airport Collaborative Decision Making(CDM)*1 to share
information in timely manner for optimized airport use.

 Monitor facility operations andachieve optimum efficiency on
facility operations under NAA
leadership Increase handling capacity by implementing Fast Travel
initiatives and utilizing passenger flow management(PFM).*2
 Optimize Total Airport Management (TAM) *3 by sharing
necessary data among airport operation stake-holders on
real-time basis.

 Improve aircraft parking stands
utilization across different alliancezones.
 Promote use of off-peak hourslots with strategic charging
system.

To Accommodate the Growing Demand*1 Airport Collaborative Decision Making (CDM): An initiative designed to work in collaboration with stakeholders to enhance airport operational capacity by sharing airline flight information and airport operations
information in a timely manner.
*2 Fast Travel: An IATA (International Air Transport Association) program promoting the automation of passenger procedures (self-service) and the introduction of common-use facilities.
*3 Total Airport Management (TAM): An initiative designed to optimize the airport overall by sharing operational data in real time and working in conjunction with stakeholders in order to achieve efficiency in the
allocation of management resources, etc.

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2. Develop Airport Capacity Enhancements in harmony for
the Prosperous Coexistence with the Local Communities.
 Develop Airport Capacity Enhancements in harmony for the Prosperous Coexistence with the Local
Communities.
We will adhere to the agreements achieved in the Four Party Council in striving for sustainable growth of Narita Airport while working
to achieve further increases in airport capacity, enhancements of airport functionalities and promoting environment and regional
development initiatives aimed at coexistence and mutual prosperity with local communities.
Direction of Initiatives to FY2021

Contribute to Improvements in Region-focused
Coexistence Coprosperity and Environment
Policies and Regional Development

Promote Further Capacity Enhancement









Realization of the changes in night-time flight operation effective 2019 Winter schedule.
 Create system for extended night-time airport operations
 Ensure access to and from central Tokyo for passengers and local access for
airport workers.
 Installation of inner double windows (for Runway A noise prevention zones)
 Step up cooperation with environment measures and regional development carriedout by relevant local government bodies
Formulate and add depth to airport development plan.
Make steady progress for Runway C construction and Runway B extension etc.,
 Prepare for the “Procedures for Approval of Changes in Airport Development Plan”
under the Civil Aeronautics Law
 Proceed with items agreed to in the Four Party Council Memorandum ofConfirmation (process of installing inner windows, etc.)
 Prompt acquisition of land






Proceed with regional coexistence and coprosperity on the fundamental principleof "Airport Development Means Regional Development"
Cooperate with the "Implementation Plan" (provisional name) led by the Chiba
Prefectural government and preceding matters
Work closely with the Ministry of Land, Infrastructure, Transport and Tourism toensure total compliance by the airlines with Standards for Prevention of Falling
Objects
Promote the region as a tourism hub through the 30th Anniversary
reconstruction of the Museum of Aeronautical Sciences
Promote Eco-Airport Vision 2030

Preparations for 72 flight/hour capacity (construction of rapid exist taxiways andaprons, etc.)

FY2021 Environmental Target
Manage Greenhouse Gas (CO2) Emissions (per each aircraft movement compared
to benchmark year FY2015)
7% reduction on FY2015 level (per aircraft movement by end of FY2020)
30% reduction on FY2015 level (per aircraft movement by end of FY2030)


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Strengthen the Flight Service Network Expansion which is
the Foundation of the Airport Competitiveness. (1 of 2)
 Promote Network Expansion to offer more options for Inbound Tourism, Diversification and Transfers.
Create a multilateral, intricate, diverse network to contribute to the development of the global air transport industry in our role as aninternational hub airport.
Direction of Initiatives to FY2021
Expand routes in response to increases in inbound passengers, creation of diverse network and improved convenience for flight connections
To offer more transfer flight options and comfort.

International
 Expand routes to accommodate increasing inbound passenger traffic(China, Southeast Asia, etc.)
 Attract more resort routes and explore potential new route to theairlines for South Asia, Northern Europe and Eastern Europe
destinations
 Develop networks to Europe, Africa and South America throughother transit hubs in the Middle East and North America, etc.
Develop New
Destinations in
EuropeLobby for China
Open Sky

Expansion inSoutheast Asia Routes

NetworkDevelopment with
Middle East Hubs

Domestic
Strengthen North American
Route Network

 Improve incentives to attract airlines on routes from Narita to unserved regions(Hokkaido, Tohoku, San-in) Operate promotion campaigns and web marketing

Destination Promotion and
WEB Marketing

Develop more Resort
Destination Routes

FY2021 Target
Over 135 international
destinations

International &Domestic

 Strengthen North American Route Flight Network by approaching the airlines.
Capture “domestic to international” and “international to domestic” flight transfer
travel demand.
 Increase flight handling capacity during peak hours
 Improve services at NAA’s air-side lounge “Narita TraveLounge”
 Plan to offer Flight Connection Guarantee and Assistance.
 Plan for implementing “One Stop Security”
 Improve Transit Stay Experience (introducing “Narita Transit Program”)
 Discuss with FSCs, attract medium to long-haul LCCs
 Increase flights on existing domestic routes

Attract new schedule flight bypromoting “Change for Nighttime Flight Operational hour”

Strengthen approachon unserved newdestinations

FY2021 Target
Over 27 domestic
destinations

 Approach airlines to utilize the newly made available slots with the Change for night time flight operations.
 Expand networks using new incentives and promote use of the “Early Morning Departure Bonus”.
 Consider strategic charging mechanism incorporating more depth in incentive plans.

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3. Strengthen the Flight Service Network Expansion which is
the Foundation of the Airport Competitiveness.(2 of 2)
 Strengthen Flight Service Hub Network and Freight Logistic functionalities.

We will promote attracting airlines which would utilize our airport as their base hub and logistics center by listening to
the needs of passengers, airlines and cargo forwarders to create a multilateral, intricate and diverse network.
Direction of Initiatives to FY2021

Promote to become Airline’s Hub Airport

Air Freight Logistic Center Functionalities

Airport Development Plan

High Value-Added Cargo Plan for Narita Airport’s future design with the Airline Alliances, LCCs andFreight outlook and utilization of 500,000 annual aircraft movement capacity.

 Increase handling capability of high value-added cargo (obtain
CEIV Pharma certification)

Correspond to Airlines’ Business Strategy Diversifications
 Diversifying airline relationships overriding conventional partnership framework.
 Construct additional upper deck boarding bridge facility for A380 (Gate 54)

Support for LCC’s Hub Operations
 Expansion Construction Project for Terminal 3 arrival lobby (increase
handling capacity from 7.5 million to 9 million passengers) and introduce
in-line baggage screening and Smart Security concept facility (FY2019)
 Expansion Construction Project for Terminal 3 check-in floor and gates(increase handling capacity from 0.9 million to 1.5 million passengers)
and construction of curbside bus-stop facilities.
 Promote attracting medium to long-haul LCCs

Improve Efficiency
 Achieve Med-term facility development with efficient layout plan.
 Review “Transshipment Cargo” handling facility and operational plan to
improve operational efficiency.
 Utilize Digital Technology to facilitate Operational Efficiency of the Cargo
Facility Operations.(truck management system, digital cargo documents)

Promote more Narita Airport use Tie-up with cargo-forwarders, Japanese Government andLocal Government etc., to add more value for Narita Airport asa Air Freight Logistic center.
 Utilize newly made available night time slots with the Change
in Night-time Flight Restrictions. (More over-night cargo
shipment potential)

174. Create more Value Added “Customer Experience” of theHighest Global Standard with our commitment for
putting ”Customer First” Principle (1 of 3)
 Offer an Airport Experience Tailored to Travelers Diverse Needs.In an market environment where more inbound tourism to Japan is growing, the passenger mix and their needs (wants) are ever diversifying andwe will aim to meet the travelers needs, reach for the Five Star in SKYTRAX Airport Rating and achieve to become an airport to offer Customer
Experience with an extra touch to reach one’s heart in their airport experience at Narita Airport

Direction of Initiatives to FY2021
Design airport passenger services to suit the changing travelers-mix and offer comfort and happy feeling before and after their
air travel.
Understanding Customer Needs and Expectations(Precise and Potential)
 Introduce real-time feedback systems
 Step up target-based promotions and marketing with digitalmarketing methods

Deploy Facility and Functionalities to meet the Desire andInterests of the Inbound Travelers

Offer Services Tailored to Individual Needs
 New services for the elderly anddisabled.
 Create pleasant spaces in the terminals.
 Offer travel information through the“TOKYO-NARITA JAPAN EXPLORER”
tourism information platform.
 Place multifunctional designer furnituresin the passenger terminals waiting area.

Support Airlines “On Time Performance”
Aim for World’s Top Level Punctual Airport









Events and exhibits that showcase the attraction and culture of Japan.
Provide unique services utilizing Japanese “Anime” and Game Contents.
Deploy multilingual, interactive, digital signage at all passenger terminals.
Open more “Visitor Service Centers” (Terminal 2)
Convey NAA’s welcome and hospitality using the digital signages.
Integrate bus ticket service counters, deploy ticket vending machines.
Renovate restrooms in Terminal 1 and Terminal 3.
At the terminal waiting areas, increase power outlets, provide hot waterservers, replace old seats with new, increase Chinese language speaking
service staff, etc.

 Introduce Narita Airport CDM(Collaborative*1Decision Making) for timely information sharing Continue Fast Travel introduction and improve passenger processing capacity with the
Passenger Flow
*2Management (PFM) system

FY2021 Target
 World Airport Rating:Achieve SKYTRAX 5 Star rating and maintain World Best Airports: Top 5 (Passenger votes)*1 Airport Collaborative Decision Making (CDM): An initiative designed to work in collaboration with stakeholders to enhance airport operational capacity by sharing airline flight*2 information and airport operations information in a timely manner.
Fast Travel: An IATA (International Air Transport Association) program promoting the automation of passenger procedures (sel f-service) and the introduction of common-use facilities.

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4. Create more Value Added “Customer Experience” of theHighest Global Standard with our commitment for
putting “Customer First” Principle (2 of 3)
 Smooth Departure Passenger Process
Improve the Quality of Passenger Experience by streamlining the passenger process flow with implementing “Fast Travel” initiatives andtechnologies, through preparations for the Olympic and Paralympic Games Tokyo 2020 traffic and improving convenience of the airport
access to strive for a stress free airport experience.
Direction of Initiatives to FY2021

Fast Travel Initiatives*1*1 Fast Travel: An IATA (International Air Transport Association) program promoting the automation of passenger procedures (selfservice) and the introduction of common-use facilities.

 Expand the deployment of automatic self-check-in kiosks (CUSS: Common Use Self-Service); commence full-scale deployment of automated bag drops (CUBD),
upgrade and streamline passenger security screening (full-scale implementation of Smart Security); smoothen passenger flow with the introduction of Passenger
Flow Management (PFM) systems.
 Develop a “common use” shared equipment and facility use environment to smoothly implement Fast Travel initiatives and introduce a charging scheme that willencourages common use system.
 Introduce the next-general of Fast Travel “One ID”, with digital facial recognition for passenger identification and boarding process on a practical level.
Boarding Simply with Face
Recognition

Facial recognition datais collated to passportand e-ticket information
at the first contact point

・ Facial data recorded
・ Airline ticket data recorded

 Processing Time (Departures)
Check in: Self-service, no more than 7 minutes
Staffed check-in, no more than 20 minutes
Passenger screening: no more than 10 minutes* Target figures are averages during late afternoon peak hours.

 Processing time (arrivals)
Check-in・Passport data recorded

FY2021 Target
Boarding

Passport
Control

Security
Security
ScreeningHome

Baggage
Drop-off

Diagram of One ID Passenger
Processing

After automated facialrecognition at kiosk,
passenger proceeds toself bag-drop

Facialrecognition,(Walk-through)Immigration: Waiting time for foreign passport holders, no morethan 20 minutes
Baggage claim: From the first bag delivery to the last baggage
Wide body aircraft, no more than 20 minutes
Smaller (narrow body) aircraft, no more than 15 minutes

Improved Airport Access Convenience
Adapt to increasing passenger traffic and diverse needs

Raise transport capacity to accommodate increasing numbers of passengers generated by greater airport capacity
Expand passenger terminal curbside facilities and optimize traffic operations
Introduce seamless connections from the airport to means of access and improve convenience (eliminate the dual JR turnstiles at the Airport Terminal 2
Station and improve the passenger flow to Terminal 3)
 Expand customer car parking (opening of P2 multistory car park; capacity increased from 2,400 vehicles to 3,100)
 Ensure access for customers on late night flights resulting from the easing of night curfew
 Expand customer car parking (opening of P2 multistory car park; capacity increased from 2,400 vehicles to 3,100)




19

4. Create more Value Added “Customer Experience”of theHighest Global Standard with our commitment for
putting “Customer First” Principle (3 of 3)
 Our Preparedness for the Olympic and Paralympic Games Tokyo 2020 Movement will become ourLegacy for service standards.
As the gateway of Japan, Narita's objective is to provide a safe and smooth avenue for the athletes, officials and spectators of the
Rugby World Cup in 2019 and the Olympic and Paralympic Games Tokyo 2020, and to view these as opportunities for further progress
and growth for our airport, and use the facility and service initiatives as a legacy of those events with which to add value to our airport.
Direction of Initiatives to FY2021
Our Preparedness for the Olympic and Paralympic Games Tokyo 2020 Movement will become our Legacy for service standards.

Safe and Smooth Handling of
the Olympic and Paralympic
Games Tokyo 2020 Participants

Legacy of Olympic andParalympic Games Tokyo 2020
Movement Handling

Total Operational Safety and ReliabilityStrengthen security screening system (installation of body scanners (AIT))
Introduce Smart Security

Ensuring safety and smooth movement of athletes and officialsFacility and Service Initiatives for the
Olympic and Paralympic Games Tokyo
2020 Movement will Remain as Legacy
to Improve Airport's Added Value

Secure smooth passage for the athletes and officials including the use of the
Temporary Dedicated Facilities for check-in and arrival luggage and equipment.
Handling of oversize and special cargo (very large equipment, horses, guns, etc.)
Assistance for wheelchair users
Accommodating VIPs on corporate and government aircraft, etc.

Further Improvements with Universal Design conceptFurther facility improvements on the Narita Airport Master
Plan with Universal Design concept.
Creating Enjoyable Spaces with Digital Signage

Extending Warm WelcomeTerminal 1: Satellite 1 gate lounge

Utilize digital signages to create pleasant welcoming spaces

Elevators for wheelchairs, etc. (Illustration)20

5. Create Attractive Retail Shops and Restaurant Space that
Adapt Quickly to Changes in Customer Needs
 Create Attractive Retail Shops and Restaurant Space that Adapt Quickly to Changes in Customer Needs
We will create attractive retail space that can adapt quickly to changes in customer needs amid dramatic changes in markets brought
about by increasing visitors to Japan from Asia and other countries to improve customer satisfaction and optimize profitability.
Direction of Initiatives to FY2021
Create Attractive Retail Shops and Restaurant Space thatcan Adapt to Changes in Passenger Composition & Needs

Maximize Profitability with Further Improvements in
Digital Marketing Expand, improve and upgrade retail facilities at the airside in the terminals.
 Step up targeted promotions and marketing based on in-depth digital information relating
T2: Extend Narita 5th Avenue.
to Narita Airport users and people planning their travel.
*1
T1: Renew duty-free shops, etc. and reorganize merchandizing stores mix.
 Continue with the introduction of increasingly popular cashless transactions
 Create new retail spaces suited to increasing LCC customer needs.
 Expand and improve online shopping services and attract customers to real shops
T3: Open Delivery Service Baggage Counters upon building 1st floor arrival lobby.
through the advance ordering site
T3: Add food and beverage outlets and shops, expand food court upon floor expansion.
/Build duty-free shops, food and beverage outlets and shops on the airside.
 Identify customer preferences and top-selling products quickly and bring in popular
Create new retail spaces
and well-known shops.
FY2021 Target
On airport duty-free,merchandising, andfood and beveragesales revenue target:

JPY165 billion
Targeted promotions using
digital marketing

Improve products andservices to suit thecustomer needs

Enhance online shopping
services
Attract to open on-trend,
popular and well-known
shops

Understand and analyze
the needs using digitalmarketing21*1 Merchandising (store composition, etc.)

5. Reinforce Airport Competitiveness to Achieve Sustainable
Growth (1 of 3)
Maintain Sound Management of the Corporate Group and Consolidate Foundations for Growth

Exercise a total commitment to sound management in the face of increasing investment in capacity building by maintaining andimproving on profitability and achieving greater investment efficiency while striving to build a company than can use task efficiency andwork innovation to respond to changes.
Direction of Initiatives to FY2021

Create a Corporate Culture which is Adaptable
to Change and Ready to Accept Challenge

Innovate
corporate
culturePromote work
style reform
Promote work-lifebalance

Strategicorganizational
restructuring

Strategic staff training
and assignment

Promotion of Overseas Airport Projects
and International Cooperation

Maintain Sound Management of the
Corporate Group

More involvementin the planning
stage

Manage cash flow
Establish large-scale
capital investment
management method

Create a Corporate Culture which is
Adaptable to Change ThroughInnovation in Work Methods



Adopt work flexibility and reduce total
working hours by promoting a worklife balance

Utilize RPA(Robotic Process
Automation) to achieve task efficiency
and improved task processes andimprove productivity

Undertake a flexible organizational
restructuring and rational staff
deployment in line with key strategies

Contribute to SDGs through ESG
management
SDGs: Sustainable Development Goals
ESG: Environment, Social, Governance

Maintain Sound
Management of the
Corporate Group Establish new evaluation criteria
and management methods forinvestment in further capacity
enhancement while emphasizing
cash-flow management
 Total compliance Contribute to SDG with ESG
management practices

Accumulationof knowledge

More cooperation
at the operation
stage
Staff
training

Promotion and International
Cooperation on Airport Projects
Overseas Using Expertise in
Airport Construction andOperation
 Planning stage: Step up involvement
in exploring projects and creating
master plans, etc. through more
extensive collaboration withcompanies with overseas businessexpertise and with partner airports
 Operation stage: More collaboration
with potential sponsor companies
 We will develop human resources toundertake the operation of airports
overseas. Also utilize management
resources of group companies

Public Listing Continue with ground work for
public listing while monitoring
government's position

226. Reinforce Airport Competitiveness to Achieve
Sustainable Growth (2 of 3)

Secure Future Staff Resource by Offering an Appealing Working Environment

We will capture our needed high-quality staff resources despite the shortage of working age generation by improving Narita Airport's
appeal as a workplace and strive to employ personnel from the local area, regional areas in Japan and countries overseas.
Direction of Initiatives to FY2021

Attract Staff Resources by Offering an Appealing Working Environment

Improve Desirability as aWorkplace

Obtain Staff Resources
Locally

Consider Operating Shared
Courtesy Buses & Developinga Residential Environment
Visualize & Quantify
Employee
Satisfaction

Tie in Regional Employment
with Narita Airport as aWorkplaceTap on Staff Resources
Locally and from Abroad
Support Use ofJapan's Regional
Human Resources

Improve Access toChild Care Facilities
in the Airport

Improve Employee
Facilities

Participate in Career
Guidance Programs at
Schools to Promote
Local Employment

Enhance Narita Airport's Popularity
Among the Younger Generation by
Publicizing its Advantages

Make Use of the Designate Skilled Labor
Visa Category to secure Staff Resourcesfrom Abroad

Support Training & Education / Support the Development of a Platform for Utilizing Staff Resources23

5. Reinforce Airport Competitiveness to Achieve Sustainable
Growth (3 of 3)


Revolutionize Productivity with Innovation

We will utilize digitization and cutting-edge technology to move forward with innovation in the intensifying competition between major
airports in Asia and provide more efficient allocation of management resources and new added value with the aim of becoming Asia's
leading airport.
Direction of Initiatives to FY2021

Revolutionize Productivity with Innovation
Smart Operation(Use of Digital Technology
for Improved Productivity)

Achieve moreadvanced, efficient
security with robots
and other cuttingedge technology

Use mobile
terminals, sensors,
etc. to achieve moreadvancemaintenancemanagement andlabor efficiency

Smart Airport(Cutting-edge ICT x services)

Improvepassenger
processing
capacity with
Fast Travel
Technologies,etc.

Introduce Narita
A-CDM for timely
information sharing

Introduce automateddriverless technology(automated airside
vehicles, passenger
boarding bridges) *1*1 The effectiveness of this technology
with boarding bridges is being trialed
and a decision will be made by FY2010

Promote Digital Marketing

Step up targeted
promotions andmarketingIntroduce guiding
robots capable ofinterfacing withusers

Introduce
restroomcleaning
robotsIntroduce
screen display
robotsprovidingmultilingual
information

Cashless and otheradvancedsettlement
technology
solutions

Guidanceservices fromremotelocations byavatar andvoice

Create an integrated
digital marketing
platform *2*2 A platform that will integrate and centralize
Narita Airport's systems and information assets
and provide status reports in real time24

Our Vision for Narita Airport’s Next Stage（Long-Term Management Plan）

25

Business Environment Surrounding Narita Airport
In FY2020, where there will be an allocation of newly available international slots at Haneda Airport, we
expect there will be a temporary drop in international flight volume at Narita with the expected shift ofoperation, however the general growing trend in the Asia region for air services shall bring about a steadyincrease in operating cash flow commencing in FY2021 for Narita Airport.
DiagramPhase 2Phase 1

FCF(Free Cash Flow)
Concentration of Allocation of
investment in the additional
Olympic andHaneda Int’lParalympic Games
slots
Tokyo 2020

Terminal 3
Expansion

Terminal 4 construction, reconfiguration of the cargoarea and major expansion of retail facilities will takeplace on the basis of traffic demand growth and trends

Increasing demand for air services
Planned Annual Capacity :500,000 aircraft movements
75 million passengers

Upfront investments for Runway B Extension and
Ruway C Construction projects will be needed.

Land
acquisition

Aircraftmovements

FY2018 Transport :
256,000 aircraft movements
43.09 million passengers

Capital Investment will increase.
Free cash flow will be in minus until
Runway B extension and Runway C
construction is completed.

Financial Stability will Around year 2030 :recover significantly with About 400,000
movements
the completion of major aircraft
About 60 million
upfront investment
passemgers

Free Cash Flow (FCF)

Runway B extension and new Runway C construction will take some time
to complete and these are necessary to meet long-term traffic demand*Phase 1 to Phase 2 transition period will depends on
Aircraft Movements
the progress of development on NRT’S functional enhancement

2021 estimate ：275,000 aircraft movements
46.50 million passengers
FCF

0
FY2021 Targets
Consolidated operating income:To ensure financial soundness, investment in growth will continue
Minimum JPY44 billion
while curbing the long-term debt-to-operating cash flow ratio.
Consolidated ROA: Minimum 4.5%
Long-term debt: Lower JPY500 billion range*Extended Runway B andLong-term debt/operating cash flow ratio:
New Runway C to be put to use.
Maximum 7.2(Terminal 4, etc. not included)

FY2018
Visitors to Japan: 40 million

Additional intn'l slots at
HanedaFY2021

Around 2030
Consolidate operating income: JPY70 billion
Consolidated ROA: Upper 5% range
Long term debt balance: Upper JPY400
billion range
Long term debt balance-to-operating cash
flow ratio in the lower 5% range

Around FY2030 Latter 2030s

Visitors to Japan: 60 million
Narita will be the airport responsible for meeting increasing demand in metropolitan Tokyo from 2020
* Transport Figures for FY2018 are actual to February + March estimates

26

NAA’s Concentrated Area of Growth and Starategies.
Mid-term Management Plan Period
FY2019～FY2021
Strategic
Policy 1

Pursue the World's Highest Standards in Safety,
Stability and Efficiency in the Airport Operations
Pursue thorough safety and stability in the airport
operations
Increase hadling capacity and improve efficiency

Strategic
Policy 2Strategic
Policy 3Strategic
Policy 4

Strategic
Policy 5Strategic
Policy 6

Enhance Airport Handling Capacity and Functionality
in harmony for Coexistence and Mutual Prosperity
with the Local Resident Community
Steadily increase capacity and enhance functionalities.
Enhance coexistence and mutual prosperity with thelocal resident community

Aim at Expanding Flight Service Network,as the Attractive Choices of Routes areStrength in Airport Competition
Capture inbound demand  Develop air logistics hub
Pursue transit convenience and comfort

Offer Customer Experience of
Global Highest Standards
Provide services tailored to customer needs tocreate customer experience with value of
Global Top Standards.

Create Attractive Retail Spaces thatmeets the Travelers Purchase Trends
in timely manner

Create an attractive retail spaces
Step up digital marketing

Strengthen Airport Competitiveness tosecure Sustainable GrowthPromote innovation with digitalization
Maintain sound management and promote Work Style
ReformSecure human resources by improving NRT’s attractivenessStrengthen our foundation for a
Significant Growth ahead

Around FY2030
Maintain the World’s Highest Level in Safety and Stability andAchieve High Quality and Efficiency in the Airport Operations

Continue to Meet the Growing Tourism Demand into the 2020sfor the Metropolitan and Grow with the Local Community
Become Japan’s Key Gateway Airport with Finely Balanced
Extensive Flight Service Network and offer Variety of Choices(FSCs and LCCs) to meet the Diversifying Travelers Needs.
Become an Airport that leaves impression on Travelers by
pursuing Value in the Airport Customer Experience

Maximize Retail Business Profitability by pursing
Customer Satisfaction

Establish a Name as an Airport Innovator,
Achieve a Sustainable Growth Cycle

Achieve Significant Growth27

1. Pursue the World's Highest Standards in Safety,
Stability and Efficiency in the Airport Operations“Safety” takes precedence over everything in the Airport Operation and NAA will pursuit
our airport’s “Safety” and “Reliability” into the future.
Strive to Achieve Stable, Efficient Airport Operations to Accommodate
Rising Demand for Air Transport Services.


Prepare for unexpected natural
disasters (severe disasters)
Strengthen crisis management
Commitment for safe and stableairport operations

Pursue Safe and Stable
Airport Operations

Around 2030

Enhance handling capacity and ability
High operational efficiency &maximum utilization of the existing
facilities

High Operational
Efficiency with
Commitment for Safety

Future Vision of Narita Airport

Adherence to the World’s Highest Level for the Safety and Stability andachieve High Standard of Quality and Efficiency in Airport Operations28

2. Enhance Airport Handling Capacity and Functionality in harmony for
Coexistence and Mutual Prosperity with the Local Resident Community.
We will pursue the coexistence and mutual prosperity with the local community and together make steadyprogress in the capacity increase and functionality enhancement at Narita Airport and realize the Runway B
extension, new Runway C construction and changing the night-time flight operational restrictions.
Final Conclusions on Further Enhancement of Airport Functions

Pursue the Coexistence and Mutual Prosperity with thelocal community which its basic principle is "Airport
Development Means Regional Community Development"Proactive cooperation with the Implementation
Plan for Regional Development Surrounding the
Airport (tentative title)

Prompt acquisition of theland followed by start ofconstruction work
“Permission
for Changes
on the Airport
Plan under the
AeronauticalLaw of Japan”

Double glass
windows andothersoundproofing
works

Soundproofing
Relocation measures

Expand grants forcommunity programs

Changes on the nighttime flight restrictions
applicable from 2019
Winter Schedule (initial
step)

Runway B
extension and the
new Runway C
construction andtheChanges on thenight-time flight
restrictions.

Around FY2030
Future Vision of Narita Airport

An airport that will meet the metropolitan area’s
future air transport service demand on after
year 2020 and grow together with the local
resident community.

Runways: 4,000m X 1; 3,500m X 2
Operating Hours: 05:00 - 24:30 (presently 06:00 - 23:00)
Aircraft runway movements per hour: 98 (presently 68)
Aircraft movements per year: 400,000 (presently 256,000)
Passengers per year: 60 million (presently 43.09 million)

Anticipated Effects for the Communities

Around FY2030◆ Job opportunity◆ Local business growth
Future Vision◆ Increased of
tourism◆ Industrial expansion◆ Growth in exports of local agricultural and marine products
Narita Airport◆ Improved transport access to and from the airport◆ Improved road network

Operational Hour
06:00 - 24:00

Figures in parentheses are projections for FY2018 (actual to February + estimate for March)29

3. Aim at Expanding Flight Service Network, as the Attractive
Choices of Routes are Strength in Airport Competition.
Build-up Finely Balanced Extensive Flight Service Network.

Capture Inbound Demand

Pursue Transit Convenience and Comfort

 Improve Transit convenience and comfort.
 Strengthen North American Route Flight Network byapproaching the airlines.
 Strengthen domestic-international and internationaldomestic connections (LCC domestic network as
strength) Attract (FSC & LCC) airlines to use NRT as their hub.
 Attract airline flight service to expand routes ofinbound tourism traffic. (Lobby Open Sky for China,
attract Southeast Asian routes in light of improved
aircraft performance) Promote use of the new “Airline Incentive Programs”
to expand network and encourage use of the earlymorning departure bonus.

Develop air logistics hubDevelop mid-term plan for efficient layout for the cargo handling facilities.
Promote efficient cargo facility operations with digitalization, etc.
Promote handling of high value-added cargo.
Improve airport’s value as an air logistics hub in collaboration with theairlines, cargo forwarders, national and regional governments.

Around FY2030

FY2021 Target
International flight service network :More than 135 destinations
Domestic flight service network :More than 27 destinations

Future Vision of Narita Airport■ Japan's gateway with a finely balanced
extensive Network for the diversifying needs.
■ Attract “domestic to international” and“international to domestic” connection travel
demand in addition to the International =International connections.

International flight service network :More than 150 destinations (presently 115)
Domestic flight service network :More than 35 Destinations (presently 22)

Figures in parentheses are accurate as of the beginning of the Summer 2019 schedule30

4. Design “Value-added Passenger Experience” that is of the
Global Highest Standards with “Customers First” basic policy.
Become an attractive Airport that is chosen by Travelers by thoroughly placing“Customers First” policy as the foundation.
● Offer and arrange for variety of Japan Stay Experience
Tailored to Diversifying Travelers Needs ●Illustration of the Next Generation “Fast Travel” Experience :Introducing “One ID” Passenger Recognition Process
Home Introduce real-time feedback Promote digital marketing for
Retail Businesses

Boarding

Departure
passport
controlg Improve passenger
terminal passage
impressions
 Provide services
 Introduce newthat would appeal
services to meet
Japan.
Step up development ofdiverse customer
 Multilingual support welcoming environmentsneeds Create a welcoming
for visitors to Japan
atmosphere

Baggage
Drop-off

Offer services
tailored to needs

Bag
Check-in

SKYTRAX
Achieve andmaintain
5 Star Ratinglevel standards

Security
screening

Understandpassenger needs

Improvepassenger
experience● Seamless Smooth Passenger Process Experience●

Improve Passenger Experience
with Stress-free Procedures

Around FY2030
Future Vision of Narita Airport
Become an Airport that leaves impression on passenger journey by
pursuing to add more value on our passenger experience offering.
31

5. Create Attractive Retail Spaces that meets the Travelers
Purchase Trends in a timely manner.
Provide Goods and Services by Understanding the Customers’ Needs andCreate Attractive Retail Spaces and Pursue in Improving Customer Satisfaction.
● Further improvements for the Retail facilities ● Expanding “Narita 5th Avenue” shopping zone in Terminal 2.
 Open new Retail spaces in Terminal 3 to meet the LCC passengers needs.

Create an attractive commercial environment

Around FY2030● Promote Digital Marketing ● Step up targeted marketing and promotions by utilizing big data on our
airport users and potential users.
 Expand “cashless” payment systems.
 Expand and promote the use of on-line shopping and pre-order services andguide the passengers from on-line system to real shops at the Passenger
Terminals.

Maximize sales efficiency and profitability

Future Vision of Narita Airport

Maximize Retail Business Profitability by pursuing
Customer Satisfaction and creating Attractive Retail Spaces.
32

6. Strengthen Airport Competitiveness to secure Sustainable Growth.
(1 of 2)
We will realize “Increased Productivity” and “offer value added Passenger Experience” through Innovation.
About FY2030

FY2021*1

Olympic and Paralympic
Games Tokyo 2020

Start off with Fast Travel

 Provide Self-Service Options : Utilize “Automatic Check-in kiosks”
and deploy “Self Bag-drops”.
 Improve “Terminal Passenger Flow” by monitoring andoptimization with “Passenger Flow Management (PFM)” system.

Utilize Next Generation Fast Travel Technology
 Introduce “One ID” passenger facial recognition
on a practical level (planned for Spring 2020)

Build and optimize a Total
Airport Management *3(TAM) system
 Share operations data
in real time Optimize the airport
overall*2

Airport CDM

 Work with relevant stakeholders to improve the overall efficiencyof airport operations by optimizing the use of resources andimproving the predictability of events.( from January 2020)

Achieve High Efficiency in Airport Facility Utilization
 Grasp current status of facility utilization, monitor utilization and under NAA’s
leadership, maximize efficient use.

Smart Operation

Improvepassenger
handling capacity

Optimize use ofexisting facilities

Improveproductivity

 Improve productivity with digital technology for overall airport operations.
(Use of autonomous vehicles, auto-positioning boarding bridges, automated security, robots, andAI, etc. for labor saving and accuracy, etc.)

Smart Airport
 Provide services of the global highest standard using cutting-edge ICT(Improve customer services using AI and robots, provide guiding services and reducelabor requirements with remote-controlled humanoid robots, etc.)

Service
Improvements

Around FY2030

Future Vision of
Narita Airport
Utilize Cuttingedge Technology
which Japan is
known for andbecome anInnovator of
Airports. (Show
Case Airport ofTechnologies.)*1 Fast Travel: An IATA (International Air Transport Association) program promoting the automation of passenger procedures (sel f-service) and the introduction of common-use facilities.
*2 Airport Collaborative Decision Making (CDM): An initiative designed to work in collaboration with stakeholders to enhance airport operational capacity by sharing airline flight information and airport operations information in a timely manner.
*3 Total Airport Management (TAM): An initiative designed to optimize the airport overall by sharing operational data in real ti me and working in conjunction with stakeholders in order to achieve efficiency in the allocation of management resources, etc.

33

6. Strengthen Airport Competitiveness to secure Sustainable Growth.
(2 of 2)Adhere to “Sound Corporate Management”

As a corporate group, we will strive for total managementsoundness and to be able to adapt to changes throughwork place efficiency and “Work Style Reform”.

Maintain soundmanagement bymanaging cash flow,
establishing methodsof managing largescale investment anddiversifying financing.

Contribute to SDGs
with ESG
management
practices

Create a corporate
culture that is
adaptable tochange throughinnovative work
practices

Around FY2030

Make Narita Airport a more appealing work
place to attract future work force.

We will strive to improve the appeal of Narita Airport as aworkplace to ensure that we can continue to secure highquality staff resources to support capacity increase.

Maintain humanresources

Training andeducation supportand utilization ofhuman resources

Enhance appeal as aworkplace

Future Vision of Narita Airport

Establish the Airport’s Sustainable Growth Cycle
34

Our Vision for Narita Airport (Long-term Growth Image)

Japan's Primary Gateway anda Leading Airport in Asia

Finely Balanced, Extensive
Flight Service Network

・Achieve a Sustainable
Growth Cycle
・An Innovator of Airports

Achieve High Quality,
Highly Efficient Airport
Operations

Safety is theHighest Priority
Commitment to“Customer First”
Principle

Stepping Up to
the Challenge ofIntensifying
AirportCompetition

An Airport that leaves animpression on the Travelers
Journey.

Maximize Retail Profitability

DigitalInnovation
An Airport that meets thegrowing travel demand for
the Metropolitan Area andGrow together with the
Local Resident Community

35

Our Vision for the Narita Airport’s Next Stage :With 500,000 Annual Aircraft Movements
The Metropolitan Area will have total of 1 million annual slot capacity, matching the world’s top level.
(500,000 at Narita and 500,000 at Haneda)

Annual Slot
Capacity

500,000 slots

AnnualPassenger Volume

Hourly runway
movements

98

LCC flight share

Over 50%

75 million
AnnualInternational Cargo

3 million
tonnes

Airport workers

70,000* Above is our best estimation at this time and our scope of airport development will be
subject to changes in our business environment and social conditions etc.,

We will strive to raise our competitiveness and do the right preparation so that Narita Airport can adequately
meet the increasing air service demand in the coming years for our metropolitan area and offer our services
as the key gateway airport of Japan and establish ourselves as an leading hub airport of Asia.

36

Management Targets

37

Management Targets (FY2021 airport handling volume)
Aircraft Movements

Passenger Numbers(Units: x 10,000 aircraft movements)
50

International
Domestic

40.0(International anddomestic combined)(Units: x 10,000 passengers)
7,000
Internati
onal

国際線

Domestic
国内線

6,000

40

30

20

10

27.5

25.6

5.2

5.8

20.4

21.7

FY2018(Forecast)

FY2021(Target)

5,000

4,309

4,000

730

2,000

213

215

810

3,579

3,840

Foreign transit passenger
1,000
component
21.45 million

Foreign transit passenger
component
23.80 million

0(Reference)
About
FY20302018年度FY2018(Forecast)（見通し）

International Air Cargo

250

4,650

3,000

0

(Units: x 10,000 tonnes)
300

6,000
(International anddomestic combined)

2021年度FY2021(Target)(目標）

FY2030(参考)(Reference)
2030年度頃LCC Ratio (LCC ratio of all passenger flights)

270

200

(Units: %)
50
40

31.9%

About
37.5%

About 45%

FY20212021年度(Target)(目標）

FY2030(参考)(Reference)

30

150

20

100

10

50

0

0

FY2018(Forecast)

FY2021(Target)（Reference)
About FY2030

FY20182018年度(Forecast)（見通し）

2030年度頃* Projections for FY2018 are actual to February + March estimates

38

Management Targets (FY2021 Financial Targets)* Projections for FY2018 are forecasts at release of interim financial report.

Consolidated Operating Income(Units: JPY100 million)(Units: %)About JPY70
billion

800

600

JPY51.5billionConsolidated ROA
8.0

About 6.3%
At least
4.5%

6.0

Minimum JPY44
billion

400

4.0

200

2.0

0

Upper 5%
range

0.0

FY20182018年度(Forecast)（見通し）

FY20212021年度(Target)(目標）

FY2030(参考)(Reference)
2030年度頃Consolidated Long Term Debt Balance(Units: JPY100 million)
6000

About JPY392
billionLower JPY500
billion range

2018年度FY2018(Forecast)
（見通し）

8
6

4000

(参考)
FY2030(Reference)
2030年度頃Consolidated Long-Term Debt Balanceto-Consolidated Cash Flow Ratio(Units: Ratio)

Upper JPY400
billion range

FY20212021年度(Target)(目標）

5.6

Maximum
7.2

Lower 5
range

4
2000
2
0

0

FY20182018年度(Forecast)（見通し）

FY20212021年度(Target)(目標）

FY2030(参考)(Reference)
2030年度頃FY20182018年度(Forecast)（見通し）

FY20212021年度(Target)(目標）

FY2030(参考)(Reference)
2030年度頃* Figures around FY2030 (reference values) include investment for construction on Runways B & C but do notinclude investment for facility plans based on demand trends (Terminal 4).

39

Management Targets (FY2021

Strategic Policy

Strategic and Financial Targets
Maintaining Airport safety and security- Ensure zero airport operations impact -Present

Strategic Targets (FY2021)

Zero

Ensure zero aircraft accidents caused by airport operations or facilities

Zero

Ensure zero serious impact on operations from facility malfunctions
Ensure zero serious impact on operations from failure of security
measures at airport

Zero
Number of airside accidents (per 10,000 a/c movements)
4.69

Under 3.12

Pursue the World's Highest
Number of inoperable runway, taxiway and apron incidents
Under 1
Standards in Safety, Stability andrequiring NOTAM publication 0
Achieving State Aeronautical Safety Program
Efficiency in the Airport Operations(SSP) Targets
Annual number of aeronautical lighting electrical facility shutdowns
Under 2requiring NOTAM publication 1
Annual number of radio navigation aid facility shutdowns requiring
0
NOTAM publication 0 *All SSP target values as of 4 March 2019

Major disaster support
Enhancement of airport functions Hourly runway movement in peak hours
andcoexistence and mutual prosperity Greenhouse gas (CO2) emissions(Per flight compared to FY2015)
with the local community
Total expansion of the aviation
network,
the source of airport
competitivenessOverseas destinations served
Japan domestic destinations served
Flight handling capacity

Passenger terminals: Approx. 10 hours

Ability to self-sustain airport operations (lifeline facilities, etc.): 72 hours
Resumption of airport operations (flights, etc.): Within 24 hours

68

72

4.02 tonnes per aircraft movement (6.5% reduction)(actual figures for FY2017)7% less than FY2015 (per aircraft movement by FY2020)
30% less than FY2015 (per aircraft movement by FY2030）

115 destinations (as of the start of the Summer 2019schedule)
22 destinations (as of the start of the Summer 2019schedule)
Refer Page 38

More than 135 destinations
More than 27 destinations

On-time rate

82.63％(Ranked 9th in 2018 by Flight Stats under the Global Hubs Highest level in the world
category)

SKYTRAX World Airport Rating

4 star rating(June 2018 survey)

Achieve & maintain 5 Star rating

SKYTRAX World's Best Airport (by public
vote)

-

Best 5

Processing time (departures)-

Check in: Self-service, no more than 7 minutes
Staffed check-in, up to 20 minutes
Security screening: Within 10 minutes※ Target figures are averages during late afternoon congested hours.

Processing time (arrivals)-

Immigration:
Waiting time for foreign passport holders, no more than 20 minutes
Baggage claim: From first bag to last
Wide body aircraft, no more than 20 minutes
Smaller (narrow body) aircraft, no more than 15 minutes

Create attractive commercial
Revenue from airport duty-free shops,
environments that adapt quickly tomerchandise outlets and restaurantschanges in customer needs

JPY143.8 billion (estimate in announcement of interim
financial report)

JPY165 billion

Sustainable growth throughFinancial Targets
consolidated airport competitiveness

Refer Page 39

Customer first values throughout as
the focal point
for the world's highest standards inpassenger experience40Capital Investment Program (FY2019 to FY2021)
Capital Investments for the each Strategic Policy Items (Consolidated/Total JPY322 billion)
Ensure NAA’s “financial soundness” through pursuing corporate management with “utmost importance on Cash Flow”, maintain andimprove the profitability and also the investment efficiency and steadily carry out necessary “investments for growth” to meet the increase
for the metropolitan area air transport services.
1. Pursue the World's Highest Standards in Safety, Stability and Efficiency in the Airport Operations

JPY60 billion

Add value for our passenger terminal facilities through renovation and upgrades, maintain functionalities for the
runways and taxiways and carry out renovation work for other existing facilities, etc.
2. Airport Capacity Increase and Functional Enhancements in harmony with Coexistence and Mutual
Prosperity with the Local community residents

JPY194 billion

Construct additional parking stands and other facility enhancements to accommodate the increase to 72 hourly runway moments.
3. Attract new routes by the airlines to enrich the flight service network to strengthen the airport
competitiveness.

JPY45 billion

Enhance Terminal 3 handling capacity by expanding floor space. Build A380 passenger boarding bridges, etc.
4. Commit “Customer First” as a principle to create World’s Best Standards in Customer Experience

JPY11 billion

Implement Fast Travel initiatives and technologies, introduce “One ID” facial recognition system, introduction of Narita Airport
CDM (Collaborative Decision Making), upgrade and streamlining of security screening, renewal of terminal restrooms, etc.
5. Create Attractive Retail Spaces by quickly respond to the changes in passenger needs.

JPY8 billion

Expansion of Narita 5th Avenue retail area in Terminal 2 and develop retail space in Terminal 3, etc.
6. Strengthen Airport Competitiveness to maintain Sustainable Growth

JPY4 billion

Renovate existing facilities to improve office and working area environments etc.,* Investment spanning multiple strategic policies are consolidated under one policy for calculation purposes41