Japan Airport Terminal Co., Ltd.
Q2 Financial Results Briefing for the Fiscal Year Ending March 2023
November 18, 2022

Event Summary[Company Name]Japan Airport Terminal Co., Ltd.

[Company ID]

9706-QCODE[Event Language]

JPN[Event Type]Earnings Announcement[Event Name]

Q2 Financial Results Briefing for the Fiscal Year Ending March 2023

[Fiscal Period]

FY2022 Q2[Date]

November 18, 2022

[Number of Pages]

22[Time]

14:00 – 14:27(Total: 27 minutes, Presentation: 27 minutes)[Venue]Dial-in[Venue Size][Participants][Number of Speakers]

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5Isao Takashiro
Nobuaki Yokota
Masatoshi Akahori
Hiroshi Onishi
Kazuhito Tanaka

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Chairman and CEO
President and COO
Executive Vice President
Executive Vice President
Senior Managing Director

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1

Presentation
Moderator: Thank you very much for waiting. The meeting will now begin.
Thank you for taking time out of your busy schedules today to participate in this conference call with Japan
Airport Terminal Co., Ltd. This conference call will be conducted using materials posted on our website. If you
do not have the materials at hand, please visit our website.
Now, let me introduce today's attendees. Mr. Isao Takashiro, Chairman and CEO of Japan Airport Terminal
Co., Ltd.
Takashiro: My name is Takashiro. Thank you.
Moderator: Mr. Nobuaki Yokota, President and COO.
Yokota: I am Yokota. Thank you.
Moderator: Mr. Masatoshi Akahori, Executive Vice President.
Akahori: My name is Akahori. Hello.
Moderator: Mr. Hiroshi Onishi, Executive Vice President.
Onishi: My name is Onishi. Hello.
Moderator: Mr. Kazuhito Tanaka, Senior Managing Director.
Tanaka: This is Tanaka. Hello.
Moderator: Now, President Yokota will give a 30-minute presentation, and then we will move on to yourquestions. The end time is scheduled to be 15:00.
We will now move on to the presentation. Please go ahead, President Yokota.
Yokota: I am Nobuaki Yokota, President and COO. Thank you very much for your continued understanding
and support of our business operations.
Today, I would like to explain our consolidated financial results for H1 of the fiscal year ending March 31, 2023,
our consolidated earnings forecast for the current fiscal year, the progress of our medium-term business plan,and our sustainability initiatives.

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1. Review of Consolidated Financial Results for FY22 2Q(1) Business Environment

Business
Environment

Number of
Passengers(HanedaAirport)⁻ COVID-19 spread during the summer, leading to the seventh wave.
⁻ No restrictions on behavior were imposed domestically and immigration restrictions were eased in stages.
⁻ Domestic prices are gradually rising due to soaring resource prices and the yen's depreciation.

⁻ Domestic flights increased steadily and recovered to about 70% of the pre-COVID-19 level, about double thelevel of the same period in the previous fiscal year, but the pace of recovery slowed after the summer and wasless than 10% below the initial forecast.
⁻ International flights were about 4 times that of the same period in the previous fiscal year, almost in line with
the initial forecast, due to the easing of immigration restrictions.

Fiscal year first-half passenger volumes
Change from theReference

initial forecast

number *（％）(10 thousands)

Rate of change

FY22

FY21

Rate of change

Initial forecast(10 thousands)(10 thousands)(％)(10 thousands)

Haneda – Domestic

2,359

1,127

109.2

2,574

-8.3

3,490

-32.4

Haneda – International

169

39

328.7

166

1.3

1,280

-86.8

Total Haneda

2,528

1,167

116.6

2,741

-7.8

4,770

-47.0

Narita

439

93

370.6

332

32.3

Kansai

58

11

395.0

89

-34.6

Chubu Centrair

18

1

911.4

22

-15.9

Airport(％)* Reference numbers are those
before the impact of COVID-19
for domestic flights, andestimated passenger volume
after the expansion of flight slots
for international flights.

Note: Haneda Airport passenger volume is based on aggregate statistics of airport usage within the jurisdiction of East Japan Civil Aviation Bureau,
available on the website of the East Japan Civil Aviation Bureau of the Ministry of Land, Infrastructure, Transport and Tourism.

Japan Airport Terminal Co., Ltd.

02

Please turn to page two. First, let me explain the situation in H1.
The business environment continued to be severely affected by the COVID-19 crisis, and although a seventh
wave was recorded during the summer, no restrictions were placed on domestic activities, and foreign entry
restrictions were also eased in stages. On the other hand, soaring resource prices and a weakening yen have
led to a gradual rise in domestic prices.
Against this backdrop, passenger volume at Haneda Airport increased significantly from the previous year,with domestic flights recovering to approximately 70% of the pre-COVID-19 level, but the pace of recovery
slowed after the summer, falling short of the initial forecast by less than 10%. On the other hand, international
flights increased significantly from the previous year due to the easing of entry restrictions and are in line with
the initial forecast.

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1. Review of Consolidated Financial Results for FY22 2Q(2) Consolidated Financial Results

Overview

⁻Operating revenues increased in all segments from the same period in the previous fiscal year due toincreases in operating revenues from merchandise sales and facility user charges revenue.

⁻The amount of loss was significantly reduced from the same period in the previous fiscal year due toincreased operating revenues and thorough cost management, resulting in a profit at JAT on a nonconsolidated basis.

⁻

Operating income exceeded the forecast due to controlling costs, although operating revenue was lower than
the forecast due to sluggish passenger growth.

Consolidated financial results for FY22 1H

Note: Figures shown are rounded down to the nearest 100 million yen. (Billions of yen)

1H Results

LY Results

Initial forecast

AmountAmountChangeaffected

affected

amountdue to TIAT

due to TIAT

Items

consolidation

Rate ofchange*1

Amountaffected due(%)

Difference

to TIAT

consolidation

consolidation

Operating revenues

43.6

-0.1

25.8

-3.0

17.7

68.4

45.4

-1.3

-1.7

(Facilities management)( 27.3 )( -1.4 )( 18.8 )( -3.8 )

8.4

45.1

( 27.5 )( -1.7 )-0.1(Merchandise sales)( 12.8 )( 1.3 )(

5.5 )( 0.8 )

7.3

132.1

( 14.5 )( 0.4 )

-1.6

(Food and beverage)( 3.4 )

(

(

1.5 )

(

-)

1.9

125.1

(

(

-)

0.0

-)

3.4 )

Operating income (loss)

-9.2

-11.0

-21.8

-14.2

12.5

-

-10.5

-11.6

1.2

Ordinary income (loss)

-9.7

-12.6

-24.3

-17.0

14.5

-

-11.0

-13.3

1.2

-3.3

-5.0

-14.4

-8.3

11.1

-

-4.0

-5.3

0.6

Quarterly net income (loss)
attributable to owners of parent*1 Financial forecast announced in May 2022

Japan Airport Terminal Co., Ltd.

03

Please turn to page three.
In this business environment, consolidated results for H1 of the fiscal year were higher than that of theprevious year in all segments due to an increase in merchandise sales and income from facility usage fees.
In this environment, due to the impact of increased revenues and thorough cost control, the deficit from theprevious year narrowed significantly, and the Company returned to profitability mainly in the domestic routes
business, on a stand-alone basis.
Compared to the initial forecast, net sales fell short due to the impact of sluggish passenger growth on
domestic routes since the summer, but operating income exceeded the forecast due to cost control.
As a result, as shown in the red box in the document, net sales were JPY43.6 billion, operating loss was JPY9.2
billion, ordinary loss was JPY9.7 billion, and net loss for the quarter was JPY3.3 billion.

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42. Consolidated Financial Forecast for FY22(1) Business Environment

Business
Environment

Number of
Passengers(Haneda Airport)

⁻Start of the nationwide travel support program (October–December) stimulated domestic tourism demand.

⁻

Restrictions on immigration were also significantly eased in October with the removal of restrictions on thenumber of immigrants, visa exemptions for short-term stays, and lifting of the ban on individual sightseeing
travel.

⁻Prices continued to rise due to high resource prices and a weak yen. A labor shortage in the service industry
has become apparent.

⁻Domestic flights are expected to recover steadily from fall onward, partly due to the nationwide travel support
program, but are expected to fall short of the initial forecast by less than 10% affected by the delay inrecovery in the first half of the year.

⁻International flights are expected to exceed the initial forecast by about 20% as the recovery is expected to beaccelerated due to an increase in passengers, especially overseas passengers, as a result of the significant
easing of entry/exit restrictions and the weak yen.

The number of passengers forecast for FY22
RevisedAirportforecasts(10 thousands)

FY21 Results Rate of change

Initial forecast(10 thousands)(10 thousands)(％)

Change from theReference

initial forecast

number *（％）(10 thousands)

Rate of change(％)

Haneda – Domestic

5,373

2,887

86.1

5,852

-8.2

6,900

-22.1

Haneda – International

561

83

575.6

466

20.4

2,560

-78.1

Total Haneda

5,934

2,970

99.8

6,318

-6.1

9,460

-37.3

Narita

1,176

234

401.6

889

32.3

Kansai

278

27

915.4

281

-1.0

Chubu Centrair

79

5

1,330.4

70

12.3

Japan Airport Terminal Co., Ltd.

* Reference numbers are those
before the impact of COVID-19
for domestic flights, andestimated passenger volume
after the expansion of flight slots
for international flights.

04

Please turn to page four. We will now explain our full-year earnings forecast.
As for the business environment in H2 of the fiscal year, domestic tourism demand has been revitalized withthe start of nationwide travel subsidies. Restrictions on immigration have also been substantially eased,
including the removal of restrictions on the number of visitors, visa exemptions for short-term stays, and thelifting of the ban on independent tourism.
On the other hand, prices continue to rise due to high resource prices and a weak yen, and concerns aboutlabor shortages in the service industry are growing.
Passenger volume on domestic routes is expected to be slightly less than 10% below the initial forecast due
to the delayed recovery in H1. However, a steady recovery is expected from the fall onward, partly due to theimpact of nationwide travel subsidies.
We expect international flights to exceed our initial forecast by about 20% due to an increase in inboundpassengers and a faster recovery due to a significant easing of entry restrictions and a weaker yen.

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2. Consolidated Financial Forecast for FY22
◆ Premises for passenger volume forecasts for FY22:
Outlook for the recovery of Haneda Airport passenger numbers
Domestic flights

International flights

Will recover to the levels before the impact of
COVID-19 (*) at the beginning of FY23

Will recover to the level planned for after the expansionof flight departures and arrivals within FY24

* Before the impact of COVID-19:
FY19 results (Apr.–Jan.) + Our forecasts (Feb.–Mar.)* It will take several years to recover due to continued restrictions on
behavior in China and delays in returning flights by overseas airlines.
(10 thousands)(10 thousands)

FY21
Number of passengers

FY22

2,887

Comparison with before

5,373

42%

impact of COVID-19

FY21

FY23
Number of passengers

6,900

78%

Comparison with before

100%

impact of COVID-19
Comparison with 2019

Assumed to be about 69 million a year in FY23 and beyond.

FY24

FY25

561

1,460

2,340

2,560

3%

22%

57%

91%

100%

4%

30%

79%

126%

139%

Comparison with before impact of COVID-19

Comparison with plan after the expansion
100%

Initial forecast

FY23

83

100%
80%

FY22

100%

100%
80%

60%

60%

40%

40%

20%

Initial forecast

20%

0%

1Q

2Q

3Q

4Q

1Q

FY2021

2Q

3Q

4Q

1Q

2Q
3Q
FY20230%4Q

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2023
2Q 3Q 4Q 1Q FY2024
2Q 3Q 4Q 1Q FY2025
2Q 3Q 4Q
FY2021
FY2022

FY2022

Japan Airport Terminal Co., Ltd.

05

Please turn to page five. The graph here shows the outlook for passenger recovery at Haneda Airport.
Passenger volume figures are based on IATA's passenger forecast and take into account the uniquecharacteristics of Haneda Airport.
As a key airport, domestic flights are in high demand and are expected to recover by the beginning of 2023,
to the level before the impact of COVID-19 became more serious.
On the other hand, it is expected to take some time for international flights to recover due to continued
restrictions on activities in China and delays in the return of flights by overseas airlines. We expect to reachthe level planned for after the expansion of arrival and departure slots by the end of FY2024 and expect torecover to about 40% by March 2023, the end of the current fiscal year, half the level of March 2019.

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2. Consolidated Financial Forecast for FY22(2) Consolidated Financial Forecast for FY22

Overview

⁻Operating revenues increased in line with passenger recovery, and operating profit/loss improved
significantly from the previous fiscal year due to thorough cost control.

⁻Although JAT remained profitable on a non-consolidated basis and the international flight business was on
the road to recovery, consolidated results showed a loss.

⁻Compared to the initial forecast, the delay in the recovery of the domestic flights was made up for by theinternational flights, and operating profit/loss improved partially due to cost reductions.

Consolidated financial forecast for FY22

Note: Figures shown are rounded down to the nearest 100 million yen. (Billions of yen)

FY22 1H

Items

Results

FY21 1H
results

FY22 2H
ChangeRevised

FY21 2H

FY22
ChangeRevised

FY21

InitialChangeforecast Difference

forecasts

results

forecasts

results

Operating revenues

43.6

25.8

17.7

62.2

31.1

31.1

105.9

57.0

48.8

105.6

0.3

Operating income

-9.2

-21.8

12.5

-5.0

-19.4

14.4

-14.3

-41.2

26.9

-16.6

2.3

Ordinary income

-9.7

-24.3

14.5

-5.8

-19.5

13.7

-15.6

-43.8

28.2

-18.1

2.5

Net income attributable

-3.3

-14.4

11.1

-1.2

-10.7

9.4

-4.6

-25.2

20.6

-5.7

1.1

*1

to owners of parent

Capital expenditures

1.1

3.4

12.8

1.2

14.0

4.7

15.0

Depreciation expenses

14.4

15.8

14.5

15.8

29.0

31.7

29.0

5.1

-5.9

9.5

-3.5

14.7

-9.5

12.4

¥0.0

¥0.0

-

-

EBITDA

Dividend
Payout ratio

To bedetermined
To be

¥0.0
-

determined

To bedetermined
To be

¥0.0

determined

-

To be
determined
To bedetermined*1 Financial forecast announced in May 2022
Japan Airport Terminal Co., Ltd.

06

Please turn to page six.
As shown in the red box, the full-year forecasts for the present fiscal year are net sales of JPY105.9 billion,
operating loss of JPY14.3 billion, ordinary loss of JPY15.6 billion, and a net loss of JPY4.6 billion.
Revenues are expected to increase with the recovery of passenger volume, and profitability will improvesignificantly from the previous year through continued strict cost control, but the Company expects to post a
consolidated loss.
Sales are expected to increase by JPY300 million against the initial forecast, as the delay in the recovery ofdomestic routes will be made up for by international routes. Due in part to cost reductions, we expect
operating income to improve by JPY2.3 billion.
As for dividends, no interim dividend will be paid, and the year-end dividend is undecided.
There is no change in our basic policy of returns for shareholders, which is to continue to pay stable dividends,
but we will continue to focus on improving profitability.

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72. Consolidated Financial Forecast for FY22(3) Consolidated Financial Forecast for FY22
(Amount affected due to consolidation of TIAT)International
FlightSituation⁻

Duty-free sales are expected to increase due to an increase in international passengers and the impactof the weak yen.

⁻

Review duty-free store business hours and promote the introduction of new brands to capture
recovering demand.

⁻

Promote efficient operation by securing products and personnel to avoid missing sales opportunities.

Consolidated financial forecast for FY22

Note: Figures shown are rounded down to the nearest 100 million yen. (Billions of yen)

Full year

Items

Revisedforecasts

AmountAmountaffected due

fiscal year

affected due

to TIAT

results

to TIAT

consolidation

105.9

Operating revenues

Initial forecast

Previous

Rate of
Change*1

Amountchangeaffected due(%)

to TIAT

consolidation

2.1

57.0

Difference

consolidation

-6.3

48.8

85.6

105.6

-1.3

0.3

(Facilities management)

(

61.3)

(

-1.1)

(

40.0)

(

-8.4)

(

21.2)

53.1

(

60.6)

(

-2.9)

(

0.7)

(Merchandise sales)

(

36.2)

(

3.1)

(

13.1)

(

2.0)

(

23.0)

174.8

(

37.0)

(

1.6)

(

-0.8)

(Food and beverage)

(

8.4)

(

0.1)

(

3.8)

(

-)

(

4.5)

118.0

(

8.0)

(

-)

(

0.4)

Operating income (loss)

-14.3

-19.1

-41.2

-28.7

26.9

-

-16.6

-21.4

2.3

Ordinary income (loss)

-15.6

-22.5

-43.8

-33.3

28.2

-

-18.1

-24.9

2.5

-4.6

-8.9

-25.2

-16.4

20.6

-

-5.7

-9.8

1.1

Net income (loss) attributableto owners of parent*1 Financial forecast announced in May 2022
Japan Airport Terminal Co., Ltd.

07

Please turn to page seven. This section shows the impact of TIAT consolidation.
On international routes, in addition to an increase in the number of foreign passengers, we expect an increasein duty-free store sales due to the weak yen, and we expect the deficit to narrow significantly.
Against this backdrop, we will strive to capture the recovering demand by increasing duty-free store hours,
introducing new brands, securing merchandise and personnel, and improving operational efficiency.

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82. Consolidated Financial Forecast for FY22(4) Quarterly Changes in Operating Income and EBITDA
Operating income

EBITDA

Haneda domestic flight passengers

Passenger
volumeHaneda international flight passengers
92%

Operating income, EBITDA

100%

85%

(Billions of yen)
50
5.0

80%

71%
63%

60%

45%

-50
-5.0

40%
35%
26%
9%

4%

20%

17%

-150
-15.0

0%
1Q

2Q

3Q

4Q

1Q

（FY21）EBITDA

2Q

3Q

4Q（FY22）

Positive turnaround in 1Q FY22 (Passenger volume: 63% on domestic flights, 9% on international flights)

Operating income

Expect to turn positive from 1Q FY23
* Passenger volume (%): Percentage of the level before the impact of COVID-19 for domestic flights;
percentage of the planned volume after the expansion of departures and arrivals for international flights

Japan Airport Terminal Co., Ltd.

08

Please turn to page eight. This section shows the number of domestic and international passengers at Haneda
Airport and our quarterly operating income and EBITDA.
Although EBITDA turned positive in Q1, earlier than originally forecasted, we do not expect operating income
to turn positive until Q1 of the next fiscal year.
Although Q4 will see a temporary decline in earnings due to a large number of expenses, we expect thatearnings will steadily improve as the number of passengers from international routes increases in the future.

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92. Consolidated Financial Forecast for FY22(5) Status of Selling, General and Administrative Expenses◆ Cost Management✓ Cost increase factors
⁻ Increase in variable costs
accompanying increases in thepassenger volume and operating
revenue⁻ Increase in utilities costs
accompanying rising fuel prices
⁻ Securing personnel to prepare forincreasing workloads
⁻ Increase in minimal maintenanceand repair expenses✓ Cost reduction efforts
⁻ Review of the long-term repairplan
⁻ Curb facility maintenance andmanagement costs by reviewing
work contents and specifications
⁻ Continue to reduce depreciation
costs by curbing capital investment

Increase in expenses
accompanying
recovery in demand

Responding tochanging
environment

Japan Airport Terminal Co., Ltd.

Minimize rebound09

Please turn to page nine. This section describes the status of selling, as well as general and administrative
expenses.
In addition to the increase in various expenses associated with the recovery in passenger volume and sales,utility costs are expected to increase due to rising fuel prices.
As for repair expenses, we have been limiting them for the past two years, and although there will be a slightincrease in repairs this fiscal year, we are keeping them to the minimum necessary.
In addition, since the volume of work is expected to increase with the recovery in business, we will promote
recruitment activities to secure personnel and further retain them.
At the same time, we will continue to control facility maintenance and management costs by reviewing
methods and frequency, with the aim of minimizing the rebound of costs and shifting to a more flexible cost
structure.

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2. Consolidated Financial Forecast for FY22(6) Status of Funds◆ Cash flow estimate(Billions of yen)
7.8

-15.1

Cash flow fromoperating activities

Cash flow from✓financing activities

Cash flow from

Free cash flow

-7.3 billion yen(FY21 result -14.2 billion yen)

-13.0

investing activities

Cashequivalents(at✓- Major capital investment

Cash burn (*)

1.7 billion yen/month(FY21 result 2.3 billion yen/month)

T2 main building satellite connection -6.0

beginningCashof year)equivalents

97.1(at end of* Monthly figures for cash flow from operating activities + cash flowfrom investing activities + amount of interest-bearing repayment(excluding some special items)

year)

76.8

✓ Available funds (end of year)
105.8 billion yen
Cash equivalents (end of year)

End of

End ofMarch 2022

March 2023

Secure capital
investment funds

20.0 billion yen+ Existing commitment line

9.0 billion yen

Continue holding a sufficientbalance of cash and cash
equivalents

Uncertain
external
environment

Japan Airport Terminal Co., Ltd.

76.8 billion yen+ Short-term line of credit (set in FY21)

10

Please turn to page 10. Here we would like to explain the status of our funds for the current fiscal year.
First, operating cash flow increased by JPY2.4 billion from the initial forecast to plus JPY7.8 billion due to therecovery in business performance. Although satellite development will begin this fiscal year, investment cash
flow was minus JPY15.1 billion, with JPY1.5 billion less than the initial forecast due to the narrowing ofinvestments in other areas. Financial cash flow is expected to remain unchanged from the initial forecast at
minus JPY13 billion.
As a result of the above, both free cash flow and cash burn are expected to improve steadily, at minus JPY7.3
billion and JPY1.7 billion per month, respectively.
We will continue to maintain sufficient cash and cash equivalents for future capital investment funds and to
take into account the uncertain external environment.

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11

3. Progress of the Medium-Term Business Plan
(1) Direction of Strategy and Our Goals for 2025
［Growth and Evolution］［Reform and Innovation］

Grow

ChangeGrowth of airport business

Establishing a foundation forregrowth

Capture future airline demand

Achieve outcomes through a fundamental
review during the COVID-19 pandemic

Growth drive

Optimize

ExpandExpansion of earnings base
Expand earnings base by developing
businesses in new fields

Create value

Enhance the earnings
base

Promote sustainability
Pursue sustainability

Improve and innovate by harnessing
DX and new technologies

Our
goals
for
2025

［Facing Challenges］

・Sustained growth of our Group・Realization of a sustainable
societyEnhance themanagement baseOrganization, personnel, andgovernance

Financial strategy

Facilities
management

To achieve both high quality and profitability, we are reviewing terminal operations and promoting the functional strength of
airport infrastructure toward increasing the number of non-Japanese visitors to Japan in 2030, while striving to reduce
maintenance and management costs and increase revenues such as rents.

Merchandise
sales/Food andbeverage

While reviewing the product mix, services, operations, cost rates, etc., we will uncover customer needs where consumption
trends have changed by taking advantage of digital marketing, and aim for operating revenues from merchandise sales of 156
billion yen and operating revenues from food and beverage sales of 18 billion yen.

New business/
Expertisebusiness

These businesses are expected to part of the earnings base in 2030. By utilizing Haneda’s value and networks, and airport
operational expertise, and through acquiring management resources we currently do not have, we aim to generate operating
revenues of 10 billion yen in 2025.

Japan Airport Terminal Co., Ltd.

11

Please turn to page 11. This section reiterates the strategic direction presented in the medium-term businessplan announced in May, as well as the vision of each business segment in 2025.
The three pillars of our management strategy are establishment of a foundation for re-growth, which is theresult of the fundamental review of the COVID-19 crisis; growth of airport business to capture future aviation
demand; and expansion of earnings base through new business developments. These are expressed by the
keywords change, grow, and expand, respectively.
From the next page, we will explain the main initiatives for this fiscal year in the following order: facilities
management, merchandise sales/food and beverage, new business/expertise business, and management
base.

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3. Progress of the Medium-Term Business Plan
(2) Facilities Management

ChangeEstablishinga foundation
for regrowth◆Efficient terminal operations based on the cost structure reviewed in the face of COVID-19
・ Continue to suppress a rebound in maintenance and management costs by flexibly allocating personnel in
response to passenger trends, internalizing operations, etc.

・ Improve services and reduce manpower through the use of technology
including robots┗ Further installation of Mini Mork, a remote guidance robot, at various locations throughout the terminal◆Enhance functions as airport infrastructure with a view toward capturing future airline
demandGrow

・ T2 main building satellite connection that contributes to optimizing passenger traffic routes and improving ontime flight rates┗ Select a contractor to start construction by the end of this year

・ Provide services that meet diverse needs of airport users
Growth of
外販強化してますって┗ Promote universal design of terminal facilities
airport┗ Introduce escort services for domestic flights
business┗ Install private working space for business use before boarding the plane◆羽田で導入実績のあるロボットを国内他空港に展開

ExpandExpansion of
earnings
base◆We are aiming to improve performance at domestic
airports as a whole by acquiring new technologies

New business/
Expertise business・ Strengthen distribution business referring to the results ofintroduction at Haneda Airport

Japan Airport Terminal Co., Ltd.

12

Please turn to page 12. For change in Facilities management, we are reviewing work content and methods, aswell as flexibly changing personnel plans for security, guidance operations, and cleaning operations in
response to passenger trends, to achieve both cost and quality.
At the same time, we have added more guidance robots and are seeking a cooperative system between
humans and robots to improve the efficiency of our operations.
In grow, a contractor has been selected to construct the connection between the main building of Terminal 2
and the satellite, and preparations are underway for the start of construction in December.
In addition, we are advancing safety and security initiatives, such as renovations to prepare for major disasters
and the installation of additional security cameras, while at the same time improving our facilities by switching
to LED lighting and improving our Wi-Fi environment.
In addition, we have introduced an escort service on domestic flights for the convenience and comfort ofpassengers who are unfamiliar with airports and passengers with small children and have installed private
work boxes throughout the terminal for business use.
For expand, the details will be explained in the new businesses section.

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3. Progress of the Medium-Term Business Plan
(3) Merchandise sales/Food and beverage

ChangeEstablishinga foundation
for regrowth◆Reviewing the product mix, services, operations, cost rates
・ Improve efficiency of store operations[Changes in inventory]

60

50
40

┗ Deploy self-checkout and contactless tester tools┗ Reduce stagnant inventory accompanying decrease in operating
revenue caused by COVID-19

8.0
80

30
20

4.0
40

・ Efforts to reduce cost rate

10

┗ Reduce merchandise procurement costs, jointly purchasefood materials┗ Expand market share of Haneda's original products[Haneda Airport selection]

Grow(Billions of yen)
億円

120
12.0

0

20.3 20.9 21.3 21.9 22.3 22.9
Inventory at end of period (left axis)
期末在庫（左軸）
Length of months inventory is held
在庫保有月数（右軸）(right axis)◆Capture recovering demand to
expand operating revenues
・ Introduce top-brand merchandisein the T3 duty-free shop
┗ Opening of LOUIS VUITTON,

Growth ofDior (Fashion), and Dior (Beauty)
外販強化してますってairportbusiness・ Develop ethical products due to
growing demand┗ At T1, renewal of Samantha Thavasa and deployment of◆羽田で導入実績のあるロボットを国内他空港に展開
upcycled products

・ Developing the farm-fresh business and organizing
nationwide products & tourism fairs

ExpandExpansion of
earnings
base◆Earn revenue not dependent on passengers, expand sales
channels through the EC business, etc.
・ Enhance functions of HANEDA Shopping, an EC site

New business/
Expertise business・ Develop Click & Collect by utilizing the airport site

Japan Airport Terminal Co., Ltd.

13

Please turn to page 13. For change in the merchandise sales/food and beverage, we are promoting initiatives
aimed at improving efficiency, including the use of self-checkout systems in store operations and the trial
introduction of non-contact tester tools.
Regarding the purchase management system, although we have been working to reduce inventories inaccordance with passenger levels since the COVID-19 crisis, we will shift our recovery plan as soon as possible
in anticipation of increased duty-free sales in the future.
In addition, while the prices of various items are currently rising, we are passing on the higher purchase prices
to the product prices at our domestic route stores. Duty-free stores will consider placing orders and changing
transportation methods in consideration of lot efficiency, while the food and beverage business will review
joint procurement of food materials and products.
For grow, this fall, we opened the first Louis Vuitton airport duty-free store in Japan, as well as two Dior
fashion and beauty boutiques in Terminal 3, to promote the introduction of high brands. We will continue tofurther enhance the attractiveness of the duty-free area at Haneda Airport.
In addition, for domestic routes, two Samantha Thavasa stores selling upcycled products were reopened, andevents such as product and tourist fairs were actively held to capture the recovering passenger demand.

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3. Progress of the Medium-Term Business Plan
(4) New business/Expertise business◆Develop new businesses that leverage the value of Haneda and improve
revenues by utilizing the know-how of operating the airport
Expand・Further strengthen EC business┗ Enhanced functions of HANEDA Shopping, an EC site
┗ Started Click & Collect service for Haneda domestic flights and duty-free pre-order sales service
at the T3 Business Jet Gate

・ Strengthen cooperation with surrounding areas
and acquire earnings opportunities┗ Exhibited at Haneda Smart City EXPO at HICity┗ Provided in-flight meal and beverage service and sold airport limited
products at the Haneda Airport presents Air and Travel Products
Exhibition held at Keikyu Department Store

Expansion of
earnings
base・ Strengthen distribution business on the basis of actual results of introduction at Haneda Airport┗ Sold Radi-Cool, a radiant cooling material that contributes to CO2 emissions reduction, to other airports
in Japan, etc.
┗ Introduced WHILL, a self-driving wheelchair, at other airports in Japan and conducted demonstration tests of
guidance robots, cleaning robots, etc.

[Sales of Radi-Cool](Akita Airport)(Naha Airport)◆Create new businesses to acquire new technologies and know-how
・ Conduct aggressive R&D and introduce new technologies that increase
passenger convenience┗ Demonstration test of self-driving vehicle (mobility) at Haneda Airport

Japan Airport Terminal Co., Ltd.

14

Please turn to page 14.
For new business/expertise business, we will continue to enhance the functionality of our e-commerce site toimprove its recognition, as well as link our e-commerce site and brick-and-mortar stores, and promote
Click&Collect. We have also started the preorder of duty-free items, not only for general travelers but also forbusiness jet users, whose use is expanding. In addition, we are steadily expanding our revenue base by sellingin-flight meals and boxed lunches at department store events, senior citizen facilities, and other venues.
In particular, we see the momentum toward building a decarbonized society as a business opportunity andare increasing installations of Radi-Cool, our cooling material which contributes to reducing CO2 emissions,mainly at other airports in Japan.
In addition, to promote the use of robotic technology in guidance operations and cleaning services in
anticipation of future labor shortages, a common issue at airports in Japan, we have conducted proof-ofconcept tests in cooperation with other airports in Japan. We conducted a proof-of-concept test of self-driving
mobility this summer, and we are now working with related companies to grow and introduce robotic
technology into security and logistics operations, considering the characteristics of terminal operations.

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3. Progress of the Medium-Term Business Plan
(5) Management Base◆DX Strategy
・Clarify strategies and promote data-driven management
・Enhance functions of HANEDA application for building a digital platform[DX strategy covering the entire airport (image)]

Customers

Aviation(2) Monitoring and forecasting congestion(Parking lots, restrooms, stores, security checkpoints, and all other areasin the airport)(1) Deploying ONE ID

Before the airport

Commercial,parking, etc.

(4) Enhancing guidance services

Parking

Restaurants(3) Ascertaining the degree ofcustomer satisfaction

Shopping/
LoungeInformation service◆Organization, Personnel, and Governance・Build a corporate culture of “Think by oneself
and take on challenges”┗ Implement cross-industry and industry-university
collaborative projects┗ Promote inner branding activities

・Secure a diverse range of personnel┗ Conduct D&I seminars for all employees┗ Promote employment of people with disabilities
Japan Airport Terminal Co., Ltd.

15

Please turn to page 15.
Regarding management base, the direction of our digital transformation strategy is to promote data-driven
management, centered on using both mass data and personal data, as well as changing behavior through data.
Specifically, by linking various information and data, we aim to realize highly accurate congestion forecasts interminals and increase customer satisfaction, create new services and products, and optimize inventory items,
operating hours, etc.
To do this, we will develop a data-driven infrastructure through the enhancement of the HANEDA application
currently used by our customers, as well as through the construction of various databases and digitalplatforms.
In the area of organization, human resources, and governance, we are working to build a corporate culturethat encourages employees to think by themselves and take on challenges, by enhancing training programsand developing professional human resources, as well as engaging in industry-industry and industry-academia
collaboration projects.
Furthermore, while promoting diversity and inclusion initiatives, such as hiring people with disabilities, wewill also promote internal branding activities and strengthen internal and external communications, such as
by starting a YouTube channel.

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4. Sustainability Initiatives(1) Direction of Initiatives
Establishment of the Sustainability Basic Policy
Establishment of sustainability
promotion system

2022– Establishment of Sustainability Committee– Establishment of Sustainability Promotion Office– Establishment of the Decarbonization Core Council andtheme-based working groups** Theme-based WGs– Energy saving/creation WG– New energy WG– Resource circulation WG

Endorsement of Task Force on Climate-related Financial
Disclosures (TCFD) recommendations
Creating a medium-term sustainability plan
– Identifying materiality (key issues)– Establishing Key Performance Indicators (KPIs)– Creating a medium-term sustainability plan

2023

Strengthen dissemination and disclosure of ESG information⇒ Aim for disclosure based on TCFD recommendations

2024

Improve external evaluation

2025

Penetration of sustainability management

Japan Airport Terminal Co., Ltd.

16

Please turn to page 16. Here we show the direction of our sustainability efforts.
So far this fiscal year, we have formulated a basic policy on sustainability, put in place a system for promoting
sustainability, and expressed our support for the TCFD recommendations. We plan to identify materiality forour company, set KPIs based on that materiality, and formulate a mid-term sustainability plan this fiscal year.
From the next fiscal year onward, we will enhance the dissemination and disclosure of ESG information withthe aim of disclosing information based on the TCFD recommendations.
In addition, we will take sequential steps to improve the evaluation of our company by external evaluation
agencies, aiming to have sustainability management permeate the entire company by FY2025.

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4. Sustainability Initiatives(2) Changes in CO2 Emissions at Haneda Airport⚫ The Ministry of Land, Infrastructure, Transport and Tourism aims to reduce CO2 emissions at
each airport by 46% or more from the FY13 level in FY30.
⚫ If that target is applied to Haneda Airport, CO2 emissions in FY30 will need to be
reduced to 127,000 tons, down 108,000 tons from the FY13 level.

Entire Haneda Airport (Facilities and Vehicles)[t-co2]250,000

Down

108,000

200,000

tons from the
FY13 level

150,000

CO2
emissions

100,000

127,000

50,000tons

02013年度
FY13

2016年度
FY16

2017年度FY17Electricity
電力

2018年度
FY18
Gas
ガス

2019年度
FY19

Other
その他

2020年度FY20

Diesel fuel and gasoline
軽油・ガソリン

2030年度FY30(Down 46% from the FY13 level)

Source: Prepared based on the Tokyo International Airport Implementation Status Report(FY2006–2020), Ministry of Land, Infrastructure, Transport and Tourism website.
Japan Airport Terminal Co., Ltd.

17

Please turn to page 17.
Although this is a different story from the goal of disclosure based on the TCFD recommendations mentionedon the previous page, this graph shows the transition of CO2 emissions not only for our company but for
Haneda Airport as a whole.
In promoting CO2 reduction in the airport sector, the Ministry of Land, Infrastructure, Transport and Tourism(MLIT) aims to reduce CO2 emissions at each airport by at least 46% from the 2013 level by FY2030.
If this target is simply applied to Haneda Airport, CO2 emissions for the airport as a whole will need to be
reduced by 108,000 tons from FY2013 to 127,000 tons by FY2030.
To achieve this lofty goal, we, as a member of the Tokyo International Airport Eco-Airport Council, have beenworking to reduce the environmental impact in the terminal and will continue to consider various methods incooperation with other members, surrounding municipalities, and the national government.

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4. Sustainability Initiatives(3) Initiatives to Reduce CO2◆ Study on converting airport vehicles to
EV and developing charging facilities[Airline companies]◆ Installing Radi-Cool radiant cooling material on terminal
connecting bridges[Airport-related companies]

EV vehicles + Charging infrastructure + Fleet
management system
Developing
charging
infrastructure

Fleetmanagement
system

EV vehicleleasing◆ Investigating utilizing hydrogen at the Haneda Airportand surrounding areas<Image of the hydrogen utilization model>

LegendHydrogen

Area around the
airportKawasakiwaterfront area

◆ Promoting LED lighting
Tanker truck

Factory

Commercial
facilities

Publicfacilities

VehiclePipeline

HanedaAirportStorage tank
Terminal 3

Hydrogen stations

Terminal 2

Terminal 1

GSE vehicles*

Japan Airport Terminal Co., Ltd.

Airportfacilities

Vehicle/Railroad

18

Please turn to page 18. As indicated on the previous page, this section introduces some of our specific efforts
to reduce CO2 emissions, which is a pressing issue.
Currently, we are making installations such as LED lighting in terminals, as well as Radi-Cool, a radiationcooling film, on fixed bridges, sequentially. Since it is expected that more and more airport vehicles will beelectrically powered in the future, we will consider installing power facilities around the terminal to enable
these vehicles to charge.
In the Kawasaki waterfront area, located on the other side of the Tama River from Haneda Airport, a numberof hydrogen-related projects are currently being promoted and a large-scale hydrogen supply chain is being
constructed. Therefore, we have begun a survey of the potential demand for hydrogen energy at and around
Haneda Airport, with the assumption that hydrogen will be supplied to Haneda Airport and the surroundingarea.
With a view to hydrogen being supplied through pipelines in the future, we will work together withsurrounding municipalities and companies to build a sustainable society.

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Notes regarding projections
Items such as plans, targets, policies, strategies, decisions, financial forecasts,
future figures and monetary amounts in this presentation that is not historical
data are projections of the future. These are based on management’s
projections, assumptions, evaluations, judgments, and conditions on
information obtainable at the present time. Realizing these items entail

uncertainty and various risks.
This presentation material is not intended to solicit investments. We request
you to make own decision regarding investments.

Contact
Japan Airport Terminal Co., Ltd., Investor Relations Division
TEL: 03 (5757) 8409
FAX: 03 (5757) 8029
Email: ir@jat-co.com

Finally, after the three-year-long COVID-19 crisis, aviation demand is now entering a recovery phase to preCOVID-19 levels, as social activities move toward normalization.
Although the business environment does not allow for optimism, with soaring resource prices, the yen's
historic depreciation, future labor shortages, and decarbonization initiatives, we will continue our efforts toimprove profitability and return to profitability in the next fiscal year, while steadily implementing thenecessary measures with a firm focus on our long-term goals.
We appreciate your continued understanding and support.
This concludes my presentation. Thank you very much.
[END]______________
Document Notes
1.
2.
3.
4.

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TollfreePortions of the document where the audio is unclear are marked with [Inaudible].
Portions of the document where the audio is obscured by technical difficulty are marked with [TD].
Speaker speech is classified based on whether it [Q] asks a question to the Company, [A] provides ananswer from the Company, or [M] neither asks nor answers a question.
This document has been translated by SCRIPTS Asia.

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