Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2017) [J-GAAP](Consolidated)
August 9, 2017
This document has been translated from the Japanese original, for reference purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.

Company name:
Code number:
Representative:
Contact:

Japan Airport Terminal Co., Ltd.
Listed stock exchange: Tokyo, 1st Section
9706
URL: http://www.tokyo-airport-bldg.co.jp/
Nobuaki Yokota, President and COO
Kazuhito Tanaka, Managing Director
TEL 03-5757-8409
Scheduled date of filing securities report:
August 14, 2017
Scheduled date of commencing dividend payment:－
Supplementary materials on financial results (yes/no)
No
Holding of quarterly earnings announcement (yes/no)
No(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the First Three Months of FY2017 (April 1, 2017 to June 30, 2017)(1) Consolidated Business Results (Cumulative)(%: Change from the same period of the previous year)

Operating revenues

Operating income

Net income attributable toowners of the parent

Ordinary income

First Three
Months ofMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

FY2017FY201651,75948,896

5.9
1.0

2,787
1,724

61.6
(40.7)

3,758
2,694

39.5
(24.0)

2,640
1,816

45.3
(25.3)(Note) Comprehensive income: First three months of FY2017 ¥3,257 million (52.3%) First three months of FY2016 ¥2,138 million (-31.4%)

First Three
Months of

Net income per
share
Yen

Diluted net income
per share
Yen

32.50
22.37

31.01
21.33

FY2017FY2016(2) Consolidated Financial Position
Total assets

Net assets per share

Millions of yen

Millions of yen%

Yen

210,662
213,026

127,280
125,43859.2
57.7

1,534.54
1,511.92

As of June 30, 2017
As of March 31, 2017
(Reference) Equity capital:

Equity capital tototal assets

Net assets

As of June 30, 2017 ¥124,648 million

As of March 31, 2017 ¥122,811 million

2. Dividends
Dividends per share
Q1-EndFY2016FY2017FY2017 (Forecast)

Q2-EndQ3-EndYear-End

Annual

Yen

Yen

Yen

Yen

Yen

-

16.00

-

17.00

33.00

18.00

-

18.00

36.00

(Note) Revisions to the most recently announced dividends forecast for FY2017: None

3. Forecast of Consolidated Financial Results for FY 2017 (April 1, 2017 to March 31, 2018)(%: Change from the same period of the previous year)

First half
Full-year

Net income attributableto owners of the parent

Ordinary income

Net income
per share

Operating revenues

Operating income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

103,400
208,600

3.6
1.8

5,200
10,500

16.5
10.6

6,600
12,800

5.8
(0.3)

4,700
8,900

9.4
29.2

57.86
109.57(Note) Revisions to the most recently announced forecast of consolidated financial results for FY2017: None

* Notes(1) Significant changes in subsidiaries during the period under review (changes in specified subsidiaries involving changes in scope of
consolidation): None
New: None
Excluded: None
(2) Adoption of special accounting methods for preparation of quarterly consolidated financial statements: Yes(Note) For details, please refer to page 9 of the appendix materials “2. Quarterly Consolidated Financial Statements and Notes(3) Notes on Quarterly Consolidated Financial Statements: Adoption of Special Accounting Methods for Preparation of
Quarterly Consolidated Financial Statements”.
(3) Changes in accounting policies, accounting estimates, and restatement of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement of revisions: None
(4) Number of shares outstanding (common stock)1) Number of shares outstanding at the period-end (including treasury stock):
As of June 30, 201784,476,500 shares
As of March 31, 20172) Number of treasury stock at the period-end:
As of June 30, 2017
3,247,675 shares
As of March 31, 2017
3) Average number of shares outstanding (quarterly consolidated cumulative period):First quarter of FY2017
81,228,895 sharesFirst quarter of FY2016

84,476,500 shares
3,247,541 shares
81,229,029 shares* This quarterly financial report is not subject to the quarterly review procedure.
* Statements regarding the proper use of financial forecast and other special remarks
The forecast of the business results reported herein was prepared based on information the Company had in its possession as of thetime this report was prepared and on certain assumptions judged to be reasonable. The Company makes no guarantee that thesefigures will be achieved. Actual results may differ significantly from forecasts due to various factors. For the assumptions used infinancial forecast and precautionary statements regarding the use of the forecasts, please refer to page 3 of the appendix materials“1.Qualitative Information on Consolidated Financial Results for the First Three Months of FY2017 (3) Explanation of Consolidated
Financial Forecasts and Other Forward-looking Statements”.

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)

Contents of the Appendix Materials
1. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST THREE
MONTHS OF FY2017 (APRIL 1, 2017 TO JUNE 30, 2017) ............................................................................................ - 2 (1) EXPLANATION OF OPERATING RESULTS ..................................................................................................................... - 2 (2) EXPLANATION OF FINANCIAL POSITION ..................................................................................................................... - 3 (3) EXPLANATION OF CONSOLIDATED FINANCIAL FORECASTS AND OTHER FORWARD-LOOKING STATEMENTS............... - 3 2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ...................................................... - 4 (1) QUARTERLY CONSOLIDATED BALANCE SHEETS ........................................................................................................ - 4 (2) QUARTERLY CONSOLIDATED STATEMENTS OF INCOME AND QUARTERLY CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME ..................................................................................................................................... - 6 Quarterly Consolidated Statements of Income .........................................................................................................- 6 Quarterly Consolidated Statements of Comprehensive Income ................................................................................- 8 (3) NOTES ON QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS ............................................................................. - 9 (NOTES ON THE PREMISE OF A GOING CONCERN) ........................................................................................................... - 9 (NOTES ON A SIGNIFICANT CHANGE IN SHAREHOLDERS’ EQUITY).................................................................................. - 9 (ADOPTION OF SPECIAL ACCOUNTING METHODS FOR PREPARATION OF QUARTERLY CONSOLIDATED FINANCIAL
STATEMENTS) ........................................................................................................................................................ - 9 (SEGMENT INFORMATION, ETC.) ...................................................................................................................................... - 9 --1-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)

1. Qualitative Information on Consolidated Financial Results for the First Three Months of FY2017(April 1, 2017 to June 30, 2017)(1) Explanation of Operating Results
During the first three months of the fiscal year ending March 31, 2018, the Japanese economy has
continued a gradual trend of recovery. Looking ahead, continuing improvement in employment and income,coupled with various government policies, is expected to support moderate economic recovery, though it isimportant to prudently monitor the uncertainty in overseas economies and volatility of capital markets.
The airline industry needs to further strengthen its competitiveness for a number of reasons that aretransforming our business environment, including increased competition caused by industry liberalization(open skies agreements) and expansion of routes by low-cost carriers (LCCs), reform of airport management
structures aimed at enhancing efficiency by integrating airport land and terminal building operations, andmovements aimed at strengthening functions of metropolitan airports. Furthermore, the Japanese government
revised upward its target for annual inbound tourists to Japan in 2020 from its previous target of 20 million to
40 million in order to meet the new challenge of a tourism-oriented developed nation, and the annual numberof inbound tourists for 2016 exceeded 24 million.
A review of passenger volume during the first quarter shows that passengers on domestic flights at
Haneda Airport and on international flights at Haneda Airport, Narita International Airport, and KansaiInternational Airport rose year-on-year.
Under these circumstances, JAT Group has laid out its long-term vision of “To be a World Best Airport”
so that we can achieve sustainable growth through the creation of new businesses and the generation of
profits, while aiming to be an airport that satisfies the needs of all stakeholders. Based on this long-term
vision, the new medium-term business plan (FY2016 to FY 2020) identifies three strategic pillars: 1) Pursuitof the ideal of Haneda Airport, 2) Expansion of our business domain utilizing our strengths and thediversification of profits, and 3) Reconstruction of our profit base and the building of competitive advantages.
We will continue to reposition and strengthen our organizational and governance structure to ensure that we
effectively implement these strategies.
As part of our efforts to expand and diversify our business domain and profit base by leveraging ourstrengths, airport lounges at Haneda's domestic terminal 1 and 2 have newly opened Power Lounge in April
2017 after having been renovated. In addition, as the first phase of the business mall project targetingbusiness people, Regus Express, equipped with rental offices, meeting rooms, and a business lounge, has
opened in May 2017 on the fifth floor at Market Place at terminal 1. Furthermore, Air BIC CAMERA, which
offers electronics and other products popular among foreign tourists to Japan, has opened in Odaiba, the third
outlet of this store after Haneda’s international terminal and Narita airport. Also, airport-style in-city
duty-free shop (Japan Duty Free GINZA) has performed well as a result of various marketing efforts. We willcontinue to generate profits by taking advantage of opportunities created by inbound tourists that are
expected to grow in the mid- to the long-term.
As a result, consolidated operating revenues for the cumulative fiscal first quarter (April 1, 2017 - June30, 2017) increased 5.9% compared with the same period of the previous year to ¥51,759 million. Operating
income rose to ¥2,787 million (up 61.6% year-on-year), ordinary income to ¥3,758 million (up 39.5%
year-on-year) and net income (attributable to owners of the parent) to ¥2,640 million (up 45.3%
year-on-year).
In the Skytrax (UK) World Airport Awards in 2017, Haneda Airport’s passenger terminals were awarded
second place in the World’s Best Airports category, which comprehensively evaluates various aspects ofinternational airports. This represents a significant jump from fourth place last year. We were also awarded
first place in the World's Cleanest Airports (the fourth time, for the second year in a row) and World's Best
Domestic Airports (for the fifth consecutive year). In a bid to further enhance our reputation, we will work
cooperatively as an entire airport to move together in our preparations for the 2020 Tokyo Olympics andParalympics Games. With the highest priority placed on airport customers, we will ensure the safety of the
airport and will provide services that offer exceptional customer convenience, comfort, and functionality.
Aiming to be the world’s best passenger terminal and to earn the long-term trust of customers, we arecommitted to contributing to the advancement of air transportation.
The following is a breakdown of earnings by segment. Note that the figures for operating income are
equivalent to those for segment income.
[Facilities Management]
Rental revenue rose from the same period during the previous year due to an increase in rental spaces toairlines and general tenants.
Revenue from facility user charges rose from the same period during the previous year because a growthin domestic passenger volume increased user charges revenue for domestic terminal facilities.
-2-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)

Other revenues rose from the same period during the previous year because revenue from outsourcing
business at Haneda’s international terminal and revenue from construction works increased.
As a result, operating revenues from facilities management operations increased to ¥13,800 million (up7.7% year-on-year). Operating income for the segment was ¥1,679 million (up 29.3% year-on-year) despite anincrease in outsourcing expenses.
[Merchandise Sales]
Sales at domestic terminal stores rose from the same period during the previous year primarily due to anincrease in domestic passenger volume.
Sales at international terminal stores decreased from the same period during the previous year, primarily
because the contract structure of boutique shops at Kansai International Airport was partially changed despite
the revenue increase from airport-style in-city duty-free shops.
Other revenues (wholesale) rose due to an increase in the wholesaling of products to stores at Haneda’s
international terminal in line with growing international passenger volume at Haneda.
As a result, operating revenues from merchandise sales operations increased to ¥33,952 million (up 5.3%
year-on-year) and operating income rose to ¥2,348 million (up 40.7% year-on-year) driven by growth in grossprofit mainly from wholesale business.
[Food and Beverage]
Sales from food and beverage operations increased from the same period during the previous year as aresult of growth in domestic passenger volume.
Sales from in-flight meals rose from the same period during the previous year due to an increase in thepassenger load factors of foreign carriers, our clients in this business, and acquisition of new clients, althoughsome carriers decreased their flights and some business with previous clients was not renewed. .
Other revenues increased due to an increase in outsourcing business at Haneda’s international passenger
terminal.
As a result, operating revenues from food and beverage operations increased to ¥5,329 million (up 5.0%
year-on-year). Operating income for the segment was ¥154 million (up 370.4% year-on-year) because profit
margins across food and beverage operations have been improved.
(2) Explanation of Financial Position[Assets]
Current assets decreased by ¥2,145 million from the previous fiscal year end to ¥65,410 million, primarily
due to a decrease in account receivables by ¥1,789 million and in merchandise and finished products by ¥284
million.
Fixed assets decreased by ¥218 million from the previous fiscal year end to ¥145,252 million, primarily
due to a decline in tangible fixed assets by ¥1,289 million resulting from the progress of depreciation, despite theincrease of investment securities by ¥1,302 million.
As a result, total assets decreased by ¥2,363 million from the previous fiscal year end to ¥210,662 million.
[Liabilities]
Current liabilities decreased by ¥2,585 million from the previous fiscal year end to ¥33,010 million,
primarily because allowance for employees’ bonuses decreased by ¥778 million and income taxes payable
decreased by ¥703 million.
Fixed liabilities decreased by ¥1,620 million from the previous fiscal year end to ¥50,371 million,
primarily because long-term loans payable decreased by ¥1,600 million.
As a result, total liabilities decreased by ¥4,206 million from the previous fiscal year end to ¥83,382 million.
[Net assets]
Total net assets increased by ¥1,842 million to ¥127,280 million primarily because retained earnings
increased by ¥1,259 million and valuation differences on available-for-sale securities increased by ¥494
million.
As a result, equity ratio was 59.2% (compared to 57.7% at the previous fiscal year end).
(3) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements
There have been no changes to the interim and full-year consolidated forecasts announced on May 12, 2017.

-3-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)

ASSETS
Current assets
Cash and deposits
Accounts receivable
Marketable securities
Merchandise and finished products
Raw materials and stored goods
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery, equipment and vehicles (net)Land
Lease assets
Accumulated depreciation and impairment loss
Lease assets (net)
Construction in progress
Other tangible fixed assets
Accumulated depreciation and impairment loss
Other tangible fixed assets (net)Total tangible fixed assets
Intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit assets
Other investments
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS-4-FY2016(As of March 31, 2017)

First Three Months of
FY2017(As of June 30, 2017)32,24016,991
7,000
7,687
178
1,146
2,334
(23)
67,55531,993
15,201
7,000
7,402
157
1,135
2,548
(28)
65,410277,768(197,790)
79,978
10,878(8,384)
2,494
11,412
2,070(1,271)799
1,064
30,524(25,582)
4,941
100,690
1,812

278,023(199,375)
78,648
10,919(8,526)
2,393
11,412
2,158(1,342)815
1,330
30,652(25,851)
4,800
99,401
1,785

27,846
6,665
4,999
538
2,933
(16)
42,967
145,471
213,026

29,149
6,663
4,747
572
2,931
44,065145,252
210,662

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)(Millions of yen)

LIABILITIESCurrent liabilities
Accounts payable
Short-term loans payable
Income taxes payable
Allowance for employees’ bonuses
Allowance for directors’ bonuses
Other current liabilities
Total current liabilities
Fixed liabilities
Bonds with stock acquisition rights
Long-term loans payable
Lease obligations
Net defined benefit liabilities
Asset retirement obligations
Other fixed liabilities
Total fixed liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-5-

FY2016(As of March 31, 2017)

First Three Months of
FY2017(As of June 30, 2017)

8,695
9,712
1,913
1,477
227
13,57035,596

8,358
9,712
1,210
698
58
12,97133,01030,096
13,450
527
4,254
464
3,198
51,99287,58830,09011,850
572
4,198
466
3,193
50,371
83,382

17,48921,33784,054(3,244)
119,637

17,48921,33785,314(3,245)
120,895

5,444

5,938

(1,545)
52
(776)
3,174
2,626
125,438
213,026(1,524)
51
(713)
3,752
2,631
127,280
210,662

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income(Millions of yen)

Operating revenues
Rent revenue
Facility user charges revenue
Other revenues
Sale of merchandise
Sale of food and beverage
Total operating revenues
Cost of sales
Cost of sales of merchandise
Cost of sales of food and beverage
Total cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and wages
Provision for employees’ bonuses
Provision for directors’ bonuses
Expenses for retirement benefits
Rent expenses
Outsourcing and commission
Depreciation expenses
Other costs and expenses
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of fixed assets
Miscellaneous expenses
Total non-operating expenses
Ordinary income-6-First Three Months of
FY2016(from April 1, 2016
to June 30, 2016)

First Three Months of
FY2017(from April 1, 2017
to June 30, 2017)

3,220
4,167
5,568
31,956
3,983
48,896

3,295
4,453
6,251
33,616
4,142
51,75923,9392,568
26,50722,38925,443
2,646
28,09023,669

2,222
631
60
240
3,141
5,356
2,832
6,179
20,664
1,724

2,301
665
58
239
2,985
5,876
2,585
6,169
20,881
2,787

157
216
601
142
1,118

156
223
572
135
1,088

117
21
8
148
2,694

81
25
11
118
3,758

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)(Millions of yen)First Three Months of
FY2016(from April 1, 2016
to June 30, 2016)
Extraordinary loss
Loss on retirement of fixed assets
Loss on valuation of other investments
Total extraordinary loss
Quarterly income before income taxes and non-controllinginterests
Income taxes – current
Quarterly income
Quarterly net income (loss) attributable to non-controllinginterests
Quarterly net income attributable to owners of the parent-7-

First Three Months of
FY2017(from April 1, 2017
to June 30, 2017)
-

4
4
8

2,694

3,749

884
1,809

1,079
2,669

(6)

29

1,816

2,640

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)

Quarterly income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests-8-

First Three Months of
FY2016(from April 1, 2016
to June 30, 2016)
1,809

First Three Months of
FY2017(from April 1, 2017
to June 30, 2017)
2,669

(621)
(2)
70

499
(0)
61

881

27

328
2,138

588
3,257

2,147

3,218

(8)

39

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)(3) Notes on Quarterly Consolidated Financial Statements(Notes on the Premise of a Going Concern)
Not applicable(Notes on a Significant Change in Shareholders’ Equity)
Not applicable(Adoption of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements)
Calculation of tax expenses
The effective tax rate on income before taxes for the consolidated fiscal year including the first quarter after theapplication of deferred tax accounting is reasonably estimated, and that estimated rate is applied to net income
for the quarterly period to calculate estimated tax expenses.
(Segment Information)
Segment Information
I.
First three months of FY2016 (from April 1, 2016 to June 30, 2016)
1. Sales and income (loss) by reportable segment(Millions of yen)

Reportable segments

Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income(Notes)Adjustments

Food andBeverage

Quarterly
consolidated
financialstatements Note 2

Facilities
Management

Merchandise
Sales

12,36732,057

4,471

48,896-48,896

449

188

602

1,239

(1,239)-12,816
1,299

32,245
1,669

5,073
32

50,136
3,001(1,239)(1,277)48,896
1,724

Total

Note 1

1. Adjustments to the segment income include ¥1,280 million of administration expenses for the parent company’s administration
divisions and others at head office which are not allocated to each of the reportable segments.
2. Segment income is adjusted with operating income recorded in the Quarterly Consolidated Statements of Income.

2. Information on impairment loss on fixed assets and goodwill, etc., by reportable segment
Not applicable
II. First three months of FY2017 (from April 1, 2017 to June 30, 2017)
1. Sales and income (loss) by reportable segment(Millions of yen)

Reportable segments

Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income(Notes)Adjustments

Food andBeverage

Quarterly
consolidated
financialstatements Note 2

Facilities
Management

Merchandise
Sales

13,28333,756

4,719

51,759-51,759

517

196

609

1,322

(1,322)-13,8001,679

33,952
2,348

5,329
154

53,082
4,182(1,322)(1,395)51,759
2,787

Total

Note 1

1. Adjustments to the segment income include ¥1,395 million of administration expenses for the parent company’s administration
divisions and others at head office which are not allocated to each of the reportable segments.
2. Segment income is adjusted with operating income recorded in the Quarterly Consolidated Statements of Income.

2. Information on impairment loss on fixed assets and goodwill, etc., by reportable segment
Not applicable-9-