PRESS RELEASE
December 6, 2017

Mid-year Consolidated Financial Results as of Sept. 30th 2017:

YoY growth in both revenue and profit
Kansai Airports today announced its financial results for the 6 months ended September 30,
2017, posting operating revenue of 99.3 billion yen, operating income of 27.2 billion yen,ordinary income of 21.5 billion yen and net profit* of 14.8 billion yen, due partly to strong
aviation demand which continued from the previous term.
Operating income was up 11%, ordinary income up 35%, and net profit up 61% from thesame period of the 1st term, or the 6 months starting on April 1, 2016 when Kansai Airports
started operation of the airports.
Kansai Airports CEO Yoshiyuki Yamaya and Co-CEO Emmanuel Menanteau delivered astatement: “We are delighted to continue to report revenue and profit growth in the first half offiscal 2017 compared to the same period of the previous year as we served more customers ina favorable business environment. Amid expectations of growing air travel demand, we will
strive to offer a wonderful experience and service to all of our customers.”
Consolidated Profit & Loss Statement

1st Term2(Billions of yen except percentage change)

3rd Term
Increase

Apr. to Sept. 2016

Change (％)

Apr. to Sept. 2017
(decrease)

Operating Revenues

89.1

99.3

10.1

11%

Operating Expenses

49.7

52.9

3.2

6%

39.5

46.4

6.9

18%

19.3

19.2

(0.1)

0%

Operating Income

20.2

27.2

7.0

35%

Ordinary Income

14.3

21.5

7.2

50%

Net Profit1

9.2

14.8

5.6

61%

EBITDA
Depreciation &Amortization

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

2

The figures exclude those recorded between December 2015 and March 2016, a part of 1 st Term.

Air Travel Demand
As a result of the increase in the number of international passenger flights to Asian
destinations such as South Korea, Hong Kong and Macau, Kansai Airports achieved a record
aircraft movements at KIX in the first half of fiscal 2017 (April to September 2017). The numberof aircraft movements combined at both KIX and ITAMI totaled 163,000, marking a record highfor the first half of a fiscal year.
Passenger traffic at KIX continued to increase from the previous year and hit an all-time highof 14.12 million in the first half, with the number of international flight passengers reaching
10.59 million which exceeded 10 million for the first time in the first half of a fiscal year. ITAMI
also saw growth in passenger traffic over the previous year partly due to the use of larger sizedaircraft. The total number of passengers combined at both KIX and ITAMI was 21.99 million.

ATM (thousand movements)

Apr. 2016 to Sept.

Apr. 2017 to Sept.

Increase20162017(Decrease)

Change (%)

160

163

42%

KIX

9093

44%

ITAMI

70

70

00%

20.31

21.99

1.68

8%

KIX

12.81

14.12

1.31

10%ITAMI

7.50

7.87

0.37

5%

PAX (million persons)

Consolidated Balance Sheet
As of September 30, 2017, total assets decreased by 131.5 billion yen to 1,745.0 billion yen
and total liabilities were 1,673.8 billion yen, a decrease of 136.6 billion, both from the end of theprevious fiscal term, partly due to progress on payments for the Right to Operate Public
Facilities and its amortization.
(Unit: JPY billion)

As of March 31, 2017

As of Sept. 30, 2017

Increase (decrease)240.2

132.7(107.5)

1,636.3

1,612.3(24.0)

1,876.51,745.0(131.5)

63.6

57.7

(5.9)

Non-current Liabilities

1,746.8

1,616.1(130.8)

Total Liabilities

1,810.4

1,673.8(136.6)

Shareholders' equity

65.1

70.1

5.0

Other Comprehensive Income

0.１

0.0

(0.1)

Non-controlling Interests

0.9

1.0

0.2

Total Net Assets

66.1

71.2

5.1

1,876.5

1,745.0(131.5)Current Assets
Non-current Assets
Total Assets
Current Liabilities

Total Liabilities and Net Assets

Contact Information for Inquiries
Kansai Airports
Corporate Communication Dept.
TEL: +81-72-455-2201

Consolidated Profit and Loss Statement
From April 1, 2017 to September 30, 2017
(Unit: Million yen)
Operating revenues

99,259Operating expenses

61,71337,545Gross operating profit
Selling, general and administrative expenses

10,359Operating income

27,186

Non-operating income

645Interest income and dividends

404

Share of profit of entities accounted for using the equity method

119

Other non-operating income

120

Non-operating expenses
Interest expense

6,368
6,315

Commissions

50

Other non-operating expense

3

Ordinary income

21,463Special gain

376

Gain on sales of non-current assets

6

Subsidy income28

Gain on transfer of business

341

Special loss

196

Loss on retirement of non-current assets

51

Loss on sales of non-current assets

0Loss on reduction of non-current assets

28

Removal cost related to replacement investment

115

Profit before income taxes

21,643

Income taxes-current

7,042

Income taxes-deferred△334

Profit6,708
14,935

Profit attributable to non-controlling interests

154

Profit attributable to owners of the parent

14,780Figures under one million yen are rounded down to the nearest million.

Consolidated Balance Sheet
As of September 30, 2017
(Unit: Million yen)

AssetsCurrent assets

Liabilities
132,697

57,724Current liabilities

Cash and deposits

96,276

Accounts payable - trade

3,633

Accounts receivable - trade

10,238

Accounts payable - other5,304

Merchandise inventories

4,213

Accrued expenses

2,956

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

Raw materials and supplies

1,134

Guarantee deposits refundable
within one year

13,175

Deferred tax assets

1,171

Income taxes payable

7,578

Other

6,488

Provision for bonuses

1,024

Allowance for doubtful accounts△0

Provision for point card certificates

1,612,270

Non-current liabilities

19,428

Bonds payable

Buildings and structures

3,812

Long-term loans payable

7,327

Liabilities for the right to operate
public facilities

Land

604

76

1,616,091
4,860

Property, plant and equipment

Machinery, equipment andvehicles

28,955

5,105

Other
Non-current assets

3,089

Deferred tax liabilities

189,560
1,368,460
54

Construction in progress

3,407

Provision for special repairs

42,499

Other

4,277

Liability for retirement benefits

3,630

1,460,041

Other

7,024

1,451,150

Total liabilities

Intangible assets
Right to operate publicfacilities
Replacement investment
assets1,673,815
Net assets

7,781
1,108

Shareholders' equity

70,083

Investments and other assets

132,800

Capital stock

25,000Investment securities

1,511

Capital surplus

25,000Retained earnings

20,083

Other

Asset for retirement benefits

203

Guarantee deposits

128,605

Deferred tax assets

2,471

Other

16

Allowance for doubtful
accounts△8

Total assets

1,744,968

Accumulated other comprehensive
incomeValuation difference on availablefor-sale securitiesDeferred gains or losses on hedge

4258
△ 16

Non-controlling interests

1,026

Total net assets

71,152

Total liabilities and net assets

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

1,744,968

Mid-year Consolidated Financial Results
as of September 30 th 2017
Dec. 6, 2017

AgendaHighlights
Revenues Drivers
Investment Plan
Overview of Consolidated Results1

Highlights
2

Revenue and Profit Growth Operating revenues: JPY 99.3 billion,
up 11% or a JPY10.1 billion increase
YoY Ordinary income: JPY21.5 billion, up
50% or a JPY7.2 billion increase YoY
 Net profit: JPY14.8 billion, up 61% ora JPY5.6 billion increase YoY• Firm growth of traffic driven by international
passengers at KIX• Non-aero revenue growth mainly in the directly
managed business such as duty-free and retail(JPY billion)

1st Term22
Apr. 2016 Sept. 2016

3rd Term
Apr. 2017 –Sept. 2017

Change％Operating Revenue

89.1

99.3

10.1

11%

EBITDA

39.5

46.4

6.9

18%

Operating Income

20.2

27.2

7.0

35%

Ordinary Income

14.3

21.5

7.2

50%

9.2

14.8

5.661%Net Profit111 “Net Profit” represents “Net Profit Attributable to Parent Company Shareholders."
2 The figures exclude those recorded between December 2015 and March 2016, a part of 1 st Term.

3

Revenues Drivers
4

Aero-Revenues
 Posted record ATM and passenger traffic
at KIX・ Air traffic movements: +4% YoY
・ Passengers: +10% YoY
・ Passengers on international flights- Over 10 million for the first time in thefirst 6-month period- Foreign passengers: 7.26 million
 Recorded passenger traffic growth for the 2ndconsecutive year at ITAMI

Apr. 2016 –Sept. 2016

Apr. 2017 –Sept. 2017

160163

42%

KIX

9093

44%

ITAMI

70

70

00%

20.31

21.99

1.68

8%

12.81

14.12

1.31

10%

International Pax

9.50

10.59

1.1012%

Japanese Pax

3.16

3.24

0.08

3%

Foreign Pax

6.22

7.26

1.04

17%

7.50

7.87

0.37

5%

ATM (thousand movements)

Pax (million pax)
KIX

・ Passengers: +5% YoY
ITAMIChange％5Non-aero Revenues
 Duty-free revenue growth exceeded traffic
growth for the 1st half in 2017

Year-on-year sales growth of
directly managed duty-free shops
70%

44%
37%
30%
20%
12%AprilMay32%Revenue
from directly
managedshops in KIX
24%

16%

June

18%
13%

JulyKIX
International
Foreign Pax
AugustSeptember6

Investment Plan7

Investment Plan
 Proactively invest 94.6 billion yen over the next 5 years.
Major Projects in progress•

ITAMI Terminal Renovation•

1st phase of KIX Terminal 1 renovation, including Fast Travel•

Replacement of all PBBs in KIX and ITAMI•

Consolidation of airport operational data(AODB)•

Investment to ensure safety and security-Enhancement of KIX baggage security screening equipment-Seismic reinforcement of the ceiling8Overview of Consolidated Results
9Business Performance
1st Term 2
Apr. – Sept. 2016

3 rd Term
Apr. - Sept. 2017

Change％

89.1

99.3

10.1

11%

Aero

40.0

43.4

3.48%

Non-Aero

49.1

55.9

6.8

14%

Operating Expenses

49.7

52.9

3.2

6%

EBITDA

39.5

46.4

6.9

18%

Depreciation & Amortization

19.3

19.2

(0.1)

0%

Operating Income

20.2

27.2

7.0

35%

Ordinary Income

14.3

21.5

7.2

50%

Net Profit1

9.2

14.8

5.6

61%

(JPY billion)

Operating Revenue

1 “Net Profit” represents “Net Profit Attributable to Parent Company Shareholders."2 The figures exclude those recorded between December 2015 and March 2016, a part of 1 st Term.

10Growth in both Aero and Non-Aero Revenues
1st Term*
Apr. – Sept. 2016

3 rd Term
Apr. – Sept. 2017

JPY 43.4
billionJPY 40.0
billionJPY 49.1
billion55%

45%

JPY 55.9
billion

56%

44%

航空系
Aero
非航空系
Non-Aero Aero: a JPY 3.4 billion increase, mainly driven by growth of the passenger
service facility charge due to passenger traffic growth Non-Aero: an JPY 6.8 billion increase, mainly driven by growth of revenuein the directly managed business such as duty-free and retail. Non-aerorevenue accounts for 56% of the total revenue.
* The figures exclude those recorded between December 2015 and March 2016, a part of 1 st Term.

11

Financial Positions( JPY billion)

As of Mar. 31, 2017

Debts concerning Right toOperate Public Facilities.

Increase(decrease)

240.2

132.7

(107.5)

Non-current Assets

1,636.3

1,612.3(24.0)TOTAL ASSETS

1,876.5

1,745.0(131.5)Current Liabilities

63.6

57.7

(5.9)

Non-current Liabilities

1,746.8

1,616.1(130.8)

TOTAL LIABILITIES

1,810.4

1,673.8(136.6)

Shareholders' Equity

65.1

70.1

5.0

Other Comprehensive Income

0.1

0.0

(0.1)

Non-Controlling Interests

0.9

1.0

0.2

TOTAL NET ASSETS

66.1

71.2

5.1

1,876.5

1,745.0(131.5)Current Assets
Right to Operate PublicFacilities.

As of Sept. 30, 2017

TOTAL LIABILITIES AND NET ASSETS

12

Ordinary Income Analysis
Comparison of Ordinary Income - Breakdown of the YoY increase(Billions of yen)
25.0

0.4

20.0

15.0

0.1

0.2

21.5

3.1

14.3

3.4

10.0

5.00.0Apr.-Sept. 2016
Ordinary Income

Aero 1

Non-Aero 2

Other OperatingExpenses

Depreciation &Amortization

Non-operating
Revenue &Expenses

Apr.-Sept. 2017
Ordinary Income

1：Increase in Aero revenue
2：Increase in Non-Aero revenue(excluding increase in cost of sales)13As of April 1, 2016, Kansai Airports succeeded the operating rights of Kansai International Airport (“KIX”)
and Osaka International Airport (“ITAMI”) from New Kansai International Airport Company (“NKIAC”) andcommenced business as an operating company for the two airports. Kansai Airports was established by aconsortium made up of VINCI Airports and ORIX Corporation as its core members. Kansai Airports sharesthe common goal of maximizing the potential of the Kansai International Airport and Osaka International
Airport, improving services to passengers and ensuring the highest levels of safety and security, investment
to enhance safety, convenience and comfort to increase value, as well as enhancing community relations in
the neighborhoods of the airports and benefiting the Kansai regional economy. On December 15, Kansai
Airports signed a concession contract with the New Kansai International Airport Company ("NKIAC") for an
operating period of 44-years. For more information, please visit：www.kansai-airports.co.jp/en/Location
Company
Representatives

BusinessScope

1-banchi, Senshu-kuko kita, Izumisano-shi,
Osaka
Representative Director and CEO:Yoshiyuki Yamaya
Representative Director and Co-CEO:
Emmanuel Menanteau
Operation and management services, etc.
of Kansai International Airport and Osaka
International Airport

Capital

25,000 million yen

Date ofIncorporation

December 1, 2015

Shareholders

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

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

VINCI Airports, a top 5 global player in the international airport sector, manages the development andoperations of 35 airports: 13 in France, 10 in Portugal (including the hub of Lisbon), 3 in Cambodia, 2 inJapan, 6 in Dominican Republic and Santiago airport in Chile. Served by more than 200 airlines, VINCIAirports’ network handled 132 million passengers in 2016.
Through its expertise as a comprehensive integrator and the professionalism of its 11,000 employees, VINCIAirports 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 construction. In 2016, its consolidated revenue amounted to €1.05 bn.
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; Kintetsu Group Holding Co., Ltd.; Keihan Holdings Co., Ltd.; Suntory HoldingsLimited; 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; The Bank of Tokyo-Mitsubishi UFJ Ltd.; Resona Bank, Limited; and the Private Finance InitiativePromotion Corporation of Japan.