Kansai International Airport Company, Ltd.
Consolidated Balance Sheets
March 31, 2007 and 2006

Millions of Yen2007
2006

ASSETS
CURRENT ASSETS:
Cash and cash equivalents:
CashTime deposits
Total cash and cash equivalents
Receivables:
Trade accounts
Other
Other current assets
Allowance for doubtful accounts
Total current assets
PROPERTY, PLANT AND EQUIPMENTLand
Buildings and structures
Machinery and equipment
Furniture and fixtures
Construction in progress
Total
Accumulated depreciation
Net property, plant and equipment
INVESTMENTS AND OTHER ASSETSDEFERRED CHARGES - NET¥

19,72841,00060,728¥17,42641,00058,426

Thousands of
U.S. Dollars
2007$

167,186
347,458
514,644

5,907
2,351
6,883
(92)

5,784
1,222
2,461
(84)

50,05919,92458,331(780)

75,77767,809642,178

629,702808,444
102,847
9,885
829,272
2,380,150(406,978)620,502807,415
111,436
9,027
809,766
2,358,146(389,818)

5,336,458
6,851,220
871,585
83,771
7,027,729
20,170,763(3,448,966)

1,973,172

1,968,328

16,721,797

3,721

3,205

31,534

93

1,082

788

LIABILITIES AND EQUITYCURRENT LIABILITIES:Current maturities of long-term debt
Payables:Trade accounts
Construction and other
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:Long-term debt
Long-term deposits received
Other long-term liabilities
Total long-term liabilities¥ 2,052,763¥ 2,040,424

17,396,297¥

274,678

EQUITY
Common stock, 17,542 thousand sharesauthorized in 2007 and 2006;
16,218 thousand and 15,771 thousand sharesissued and outstanding in 2007 and 2006
DeficitsThousands ofU.S. Dollars
200776,961

2,327,780

4,381
10,888
10,884

3,188
10,692
9,875

37,127
92,271
92,237300,831100,716

2,549,415

1,143,663
11,163
4,988

1,363,814
11,561
4,070

9,692,059
94,602
42,271

1,159,814

1,379,445

9,828,932

MINORITY INTERESTS¥

661

810,900(219,133)

788,556(228,954)

6,872,034(1,857,059)

Total

591,767

559,6025,014,975

Minority Interests

351

Total equity
TOTAL

Millions of Yen
2007
2006

TOTAL

592,118¥ 2,052,763

2,974
559,602¥ 2,040,424

5,017,949
17,396,297

Kansai International Airport Company, Ltd.
Consolidated Statements of Operations
Years Ended March 31, 2007 and 2006

Millions of Yen
2007
2006
OPERATING REVENUES:
Airport facilities
Airport service
Airport - other
Railway facilities
Total operating revenues¥

OPERATING EXPENSES:
Airport - facilities and service operations
Airport - other operations
Airport - selling, general and administrative
Airport - depreciation
Total airport operating expenses

58,554
19,83022,4594,894
105,737¥58,348
19,99921,327
4,913
104,587

Thousands ofU.S. Dollars
2007$496,220
168,051
190,33141,474
896,076

30,0199,693
9,928
26,79776,43732,6809,054
9,773
26,57478,081

254,398
82,144
84,136
227,093647,771

Railway facilities - operations
Railway facilities - general and administrative
Railway facilities - depreciation
Total railway operating expenses

925
162
2,505
3,592

1,002
201
2,565
3,768

7,839
1,373
21,22930,441

Total operating expenses

80,02981,849678,21225,70822,738217,864249
9,000(22,103)
(415)

20
9,000
(23,120)
(443)

2,110
76,271(187,314)(3,517)−−(2,397)(15,666)(2,437)(23,984)705(40,259)−−(20,313)(132,763)

10,041(17,521)85,093

INCOME TAXES
Current
Deferred
Total income taxes

211
(20)
191

205
(168)
37

1,788
(169)
1,619

MINORITY INTERESTS IN NET INCOME OFSUBSIDIARIES

29160

246

(17,718)

83,228OPERATING INCOME
OTHER INCOME(EXPENSES):Interest income
Government subsidy
Interest expence
Amortization of deferred charges
Cumulative adjustment to depreciation expenses due
to change in estimated useful lives of fixed assets
Loss on impairment of fixed assets
Other - net
Other expenses - net
INCOME(LOSS) BEFORE INCOME TAXES AND
MINORITY INTERESTSNET INCOME(LOSS)¥9,821¥Yen

INCOME (LOSS) PER COMMON SHARE¥616.20¥ (1,165.90)

U.S. Dollars$5.22

Kansai International Airport Company, Ltd.
Consolidated Statements of Changes in Equity
Years Ended March 31, 2007 and 2006
Thousands
IssuedNumber ofShares ofCommon Stock
BALANCE, APRIL 1, 2005

14,808Millions of Yen
Shareholders' Equity¥CommonStock

Deficits

740,400¥ (211,236)

Issuance of common stock
Net loss963

BALANCE, MARCH 31, 2006

15,771

788,55644722,344

Reclassified balance as of March 31,2006
Issuance of common stock
Net income
Net change in the year
BALANCE, MARCH 31, 2007

Minority
interest

Total¥

48,156529,164¥

TotalEquity¥(17,718)

48,156(17,718)

48,156(17,718)(228,954)

559,602559,602

9,821

22,344
9,821

661

661
22,344
9,821
(310)

(310)
16,218¥810,900

529,164¥ (219,133)¥591,767

¥

351

¥

592,118

Kansai International Airport Company, Ltd.
Consolidated Statements of Changes in Equity
Years Ended March 31, 2007 and 2006
Thousands
IssuedNumber ofShares ofCommon StockBALANCE, APRIL 1, 2005

Thousands of U.S. dollars
Shareholders' Equity
CommonStock

Deficits

Total$ (1,940,288)$ 4,742,390

83,229189,356
83,229963

BALANCE, MARCH 31, 2006

15,771$ 6,682,678

447

189,356

BALANCE, MARCH 31, 2007

TotalEquity

14,808Issuance of common stock
Net loss

Reclassified balance as of March 31,2006
Issuance of common stock
Net income
Net change in the year

Minority
interest$ 4,742,390

$
5,602

16,218$ 6,872,034$ (1,857,059)$ 5,014,975$(2,627)

5,602
189,356
83,229(2,627)2,975$ 5,017,950