May 08, 2014

Financial Report for the Year Ended March 31, 2014 (FY2013) [J-GAAP] (Consolidated)
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/
Isao Takashiro, President
Hiroshi Miyauchi, Managing Director, Senior Vice President, Administration Department
TEL 03-5757-8030
Scheduled date of annual general meeting of shareholders:June 27, 2014
Scheduled date of filing securities report:
June 27, 2014
Scheduled date of commencing dividend payment:
June 30, 2014
Supplementary materials on financial results (yes/no)
Yes
Holding of earnings announcement (yes/no)
Yes (for institutional investors and financial analysts)(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Year Ended March 31, 2014 (April 1, 2013 to March 31, 2014)(1) Consolidated Business Results(%: Change from the previous period)
Operating revenues

%
8.1
5.2

Millions of yen

FY2013
FY2012

Operating income

147,116
136,149

6,194
4,179
FY2013

Diluted net income
per share
Yen

36.68
20.00

-

(Reference) Equity in earnings (losses) of affiliates:

FY2013

Net income

%
56.1
-

Millions of yen

5,723
3,666

¥ 3,914 million (117.8%)

Net income per
share
Yen

FY2013
FY2012

%
48.2
376.4

Millions of yen(Note) Comprehensive income:Ordinary income

FY2012Millions of yen

2,979
1,624

%
83.4
-

¥1,797 million (-%)%

Ordinary income tototal assets%

Operating income tooperating revenues
%

3.0
1.7

3.1
2.0

4.2
3.1

Return on equity¥ (706) million

FY2012¥ (974) million(2) Consolidated Financial Position
Total assets

Net assets per share

Millions of yen

Millions of yen%

Yen

185,358
186,431

101,866
100,63354.1
53.1

1,235.25
1,219.40

As of March 31, 2014
As of March 31, 2013
(Reference) Equity capital:

Equity capital tototal assets

Net assets

As of March 31, 2014

¥100,339 million

As of March 31, 2013

¥99,052 million(3) Consolidated Cash Flows
Cash flows from operating
activities

Cash flows from investing
activities

Cash flows from financing
activities

Cash and cash equivalents
at the year-end

Millions of yen

Millions of yen

Millions of yen

Millions of yen

15,204
15,695(9,660)(15,389)(6,574)(4,983)

15,133
16,151FY2013
FY2012
2. Dividends

Dividends per share

Dividend
payout ratio(consolidated)

Dividends on
net assets(consolidated)

Q1-EndQ2-EndQ3-EndYear-End

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

-

3.50
6.00

-

6.50
7.00

10.00
13.00

812
1,055

50.0
35.4

0.8
1.1

-

6.50

-

6.50

13.00

FY2012FY2013
FY2014(Forecast)

AnnualTotal
dividends(annual)25.1

3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2015 (April 1, 2014 to March 31, 2015)(%: Change from the same period of the previous year)

Operating revenues
First half
Full-year

Operating income

Ordinary income

Net income
per share

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

77,500157,600

6.9
7.1

4,100
8,300

34.7
34.0

3,700
7,600

13.7
32.8

2,000
4,200

6.3
41.0

24.62
51.71

4. Other Information(1) Significant changes in subsidiaries during the year under review (changes in specified subsidiaries involving changes in scope of
consolidation): None
New: None
Excluded: None
(2) Changes in accounting policies, accounting estimates, and restatement of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement of revisions: None
(Note) For details, please see “(5) Notes on the Consolidated Financial Statements (Notes on Changes in Accounting Policies)” in“4. Consolidated Financial Statements” in the appendix materials.
(3) Number of shares outstanding (common stock)1) Number of shares outstanding at the year-end (including treasury stock):
As of March 31, 2014
84,476,500 shares
As of March 31, 2013
2) Number of treasury stock at the year-end:
As of March 31, 2014
3,246,682 shares
As of March 31, 2013
3) Average number of shares outstanding during the period:
Year ended March 31, 2014
81,229,979 sharesYear ended March 31, 2013

(Reference) Summary of Non-Consolidated Financial Results
1. Financial Results for the Year Ended March 31, 2014 (April 1, 2013 to March 31, 2014)(1) Non-Consolidated Business Results
Operating revenues

%
6.9
3.7

Millions of yen

FY2013
FY2012

Operating income

118,343
110,675

3,914
2,440

3,246,167 shares
81,231,324 shares(%: Change from the previous period)

Ordinary income

%
60.4
-

Yen

Diluted net income per
share
Yen

29.04
19.31

-

Net income per share

FY2013
FY2012Millions of yen

84,476,500 shares

Millions of yen

4,229
2,768

Net income

%
52.8
-

%
50.4
-

Millions of yen

2,358
1,568

(2) Non-Consolidated Financial Position
Total assets

As of March 31, 2014
As of March 31, 2013
(Reference) Equity capital:
2.

Equity capital tototal assets

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

174,063
175,508

90,701
88,97152.1
50.7

1,116.60
1,095.30

As of March 31, 2014 ¥90,701 million

As of March 31, 2013 ¥88,971 million

Forecast of Non-Consolidated Financial Results for the Year Ending March 31, 2015 (April 1, 2014 to March 31, 2015)(%: Change from the same period of the previous year)

Operating revenues
First half
Full-year

Ordinary income

Net income

Net income per share

Millions of yen%

Millions of yen%

Millions of yen%

Yen

63,300129,200

8.3
9.2

3,400
6,300

57.6
49.0

2,100
3,900

56.4
65.3

25.85
48.01

* Implementation status of audit procedures
The audit procedure based on the Financial Instruments and Exchange Act does not apply to this Financial Report, and the audit
procedure based on the Financial Instruments and Exchange Act had not been completed as of the release of this Financial Report.

* Statements regarding the proper use of financial forecast and other special remarks
1. 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 matters related tofinancial forecast mentioned above, please refer to page 2 of the appendix materials “1. Business Results (1) Analysis ofConsolidated Business Results”.

2. Earnings announcement is planned to be held on May 16, 2014 for institutional investors and financial analysts. Video of thepresentation as well as presentation materials used in the earnings announcement will be promptly posted on the Company’s
website following the meeting.

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)

Contents of the Appendix Materials
1.

BUSINESS RESULTS ................................................................................................................................. - 2 -(1) ANALYSIS OF CONSOLIDATED BUSINESS RESULTS .................................................................................................... - 2 (2) ANALYSIS OF CONSOLIDATED FINANCIAL POSITION .................................................................................................. - 4 (3) BASIC POLICY REGARDING DISTRIBUTION OF EARNINGS AND DIVIDENDS FOR THE YEAR ENDED MARCH 31, 2014 AND
THE YEAR ENDING MARCH 31, 2015 ....................................................................................................................... - 5 -(4) BUSINESS AND OTHER RISKS .................................................................................................................................. - 5 2.

OUTLINE OF THE BUSINESS GROUP ....................................................................................................... - 7 -3.

MANAGEMENT POLICY .......................................................................................................................... - 9 (1) BASIC MANAGEMENT POLICY .................................................................................................................................. - 9 (2) KEY PERFORMANCE INDICATOR .............................................................................................................................. - 9 (3) MID- AND LONG-TERM BUSINESS PLAN AND ISSUES WHICH THE COMPANY NEEDS TO ADDRESS ................................. - 9 -4.

CONSOLIDATED FINANCIAL STATEMENTS ........................................................................................... - 11 (1) CONSOLIDATED BALANCE SHEETS ........................................................................................................................ - 11 (2) CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ............... - 13 (3) CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY .................................................................. - 16 (4) CONSOLIDATED STATEMENTS OF CASH FLOWS ....................................................................................................... - 18 (5) NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS ........................................................................................ - 20 (Notes on the Premise of a Going Concern) ...............................................................................................................- 20 (Notes on Changes in Accounting Policies) ...............................................................................................................- 20 (Notes on Changes in Presentation) .........................................................................................................................- 20 (Notes on Consolidated Balance Sheets) ...................................................................................................................- 21 (Notes on Consolidated Statements of Income)...........................................................................................................- 22 (Notes on Consolidated Statements of Comprehensive Income) ....................................................................................- 23 (Notes on Consolidated Statements of Changes in Shareholders’ Equity) .......................................................................- 24 (Notes on Consolidated Statements of Cash Flows) ....................................................................................................- 25 (Segment Information) ...........................................................................................................................................- 26 --1-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)

1. Business Results(1) Analysis of Consolidated Business Results1) Summary of earnings for the fiscal year ended March 31, 2014
During the fiscal year ended March 31, 2014, the Japanese economy showed modest recovery primarily
driven by improvement of corporate earnings in a wide range of sectors and by private consumption. Although
the economy may be negatively affected by a downturn in demand following the consumption tax hike, increases
in household income and investment are expected to support ongoing economic recovery. Nevertheless, theprospect of an economic downturn overseas still poses a risk that could weaken the domestic economy.
In the airline industry, passenger volume at Haneda Airport on domestic flights increased compared to theprevious year supported by economic recovery and increased flights in conjunction with the airport’s expansionof landing slots by 20,000 annually since March 2013. Passenger volume on international flights as a whole rose
year-on-year, because visa requirements for Southeast Asian tourists were eased and the weaker Yen has made iteasier to travel to Japan. This helped the annual number of foreign visitors to Japan in 2013 surpass 10 million
for the first time. To accommodate further increase, landing slots for international flights at Haneda Airport wereincreased from 60,000 to 90,000 annually from the end of March 2014.
The airline industry still needs to further strengthen its competitiveness for a number of reasons in order toaccommodate changes in the industry landscape, including industry liberalization (open skies agreements),
intensifying competition triggered by the expansion of low-cost carriers (LCC), and the ongoing review
concerning airport management, as evidenced by the newly-enacted law for “The operation of state-run airports,
etc. by utilizing the management capabilities of the private sector”.
Under these circumstances, the Japan Airport Terminal (JAT) Group marked the 60th anniversary of its
founding and formulated a new medium-term business plan (FY 2013 through FY 2015). We have worked on
strategic priorities under the medium-term business plan that include 1) Responding to the internationalization ofHaneda Airport, 2) Laying the groundwork to ensure the future of the airport’s operation and 3) Improving the
profitability of group businesses.
To respond to the internationalization of Haneda Airport, in line with the increased international flights after
March 2014 as well as the expansion of the international passenger terminal at Haneda, a transfer facility
between the domestic and international terminals was constructed at the airport’s domestic passenger terminal.
This contributed to enhancing customer convenience, comfort, and functionality. We are also trying to improve
the profitability of our group businesses by expanding the operations of new duty-free shops and of facility
maintenance and management in the expanded space in Haneda’s international passenger terminal.
As a step toward enhancing the future of the airport’s operation at Haneda, we introduced a new structure
involving passenger service facility charges for public areas. While these charges were previously paid by theairlines, they will be paid by airport users as of April 2014. This change is intended to create greater transparency
with respect to the cost and benefit relationship involving the use of the airport facility.
With a view toward higher profitability, we strengthened marketing efforts targeting customer needs. At
shops in the international terminal, our efforts to respond to increasing inbound international travelers’
widespread willingness to take advantage of the weaker Yen resulted in an improvement in unit purchase prices.
Moreover, in April 2013 we opened Flight Deck Tokyo, an indoor observation floor where users can view
aircrafts and Tokyo Bay, regardless of weather conditions, on the fifth story of Terminal 2. In doing so, our aim
was to improve convenience and comfort at the domestic passenger terminal.
In recognition of these efforts, in March 2014 Haneda was ranked first for the second consecutive year in the
categories of "World's Best Domestic Airport" and "Best Airport Terminal Cleanliness" in the International
Airport Award administered by UK-based Skytrax.
As a result, consolidated operating revenues for the current fiscal year totaled ¥147,116 million (up 8.1%
from the previous fiscal year), with operating income of ¥6,194 million (up 48.2%), ordinary income of ¥5,723
million (up 56.1%), and net income of ¥2,979 million (up 83.4%).
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]
Rent revenue rose slightly from that of the previous year, primarily because of increased office space rented
by airlines in the domestic passenger terminal building at Haneda Airport and an increase in percentage rent
revenue.
Revenue from facility user charges surpassed the figure for the previous year because user charges revenue
for domestic terminal facilities increased due to an increase in passenger volume as well as the addition of three
spots at domestic Terminal 2.
Other revenues increased primarily due to an increase in revenue at airport lounges and parking revenue-2-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)

following a recovery in passenger volume.
As a result, operating revenues from the facilities management segment increased to ¥46,228 million (up3.3% from the previous year) and operating income for the segment rose to ¥3,656 million (up 9.0 %).
[Merchandise Sales]
Sales at domestic terminal stores rose year-on-year due to an increasingly higher recognition among
passengers of new directly-managed stores in the departure gate lounge in domestic Terminal 1. Sales promotionand expansion of private-branded merchandise also fueled this increase.
Sales at international terminal stores significantly surpassed the figure for the previous year. The increase canbe attributed to favorable sales results of brand products, supported by the weaker Yen and a rise in the volume oftravelers who visited Japan from overseas, which rebounded from FY 2012 when the figures were negatively
impacted by the dispute over the Senkaku Islands.
Other revenues also rose year-on-year due to an increase in the wholesaling of products to stores at Haneda
Airport’s international passenger terminal building and to other airports, despite the negative impact of changes
in contracts for wholesale business at Kansai International Airport.
As a result, operating revenues from the merchandise sales segment increased to ¥88,150 million (up 11.3%
from the previous year). Operating income for the segment grew to ¥6,515 million (up 40.7%) due to various
cost reductions in procurement as well as efforts to reduce the cost of goods by expanding the line-up of
private-branded merchandise.
[Food and Beverage]
Sales from the food and beverage segment increased from the previous year. The increase was attributable toa growth in passenger volume, the opening of new directly-managed stores in conjunction with the expansion of
three spots at domestic passenger Terminal 2, as well as proactive sales and marketing activities focused on
customer acquisition.
Sales from in-flight meals slightly declined because some international carriers decreased their passenger
volume and reduced the frequency of some of their flights.
Other revenues decreased primarily because of the closing of a store due to construction at the international
passenger terminal.
As a result, operating revenues from the food and beverage segment totaled ¥17,584 million (up 4.2% fromthe previous year). Operating income for the segment rose to ¥147 million (up 38.5%) due to cost reductions inlabor costs and purchases.
2) Forecast for the fiscal year ending March 31, 2015
Over the next fiscal year, the Japanese economy is expected to continue its recovery trajectory as exports
grow, the stimulus package starts to help sustain the economy, and household income and investment improve.
Nevertheless, the prospect of an economic downturn overseas still poses a risk that could weaken the economy.
In addition, the economy is likely to be negatively affected by downturn in demand after the consumption tax
hike.
In the airline industry, passenger volume is forecast to grow year-on-year primarily because of the landing
slots for international flights at Haneda were increased from 60,000 to 90,000 annually from the end of March
2014. Nevertheless, the airline industry needs to further strengthen its competitiveness and adapt to changes thatare taking place, including industry liberalization, intensifying competition triggered by the expansion LCCs, andthe ongoing review concerning airport management, as evidenced by the enforcement of the law for “Theoperation of state-run airports, etc. by utilizing the management capabilities of the private sector”.
Under these conditions, our present expectations for earnings by segment are described below.
Facilities management operations are expected to generate higher revenue than in the previous year mainly
because passenger volume growth is forecast to bring in greater revenue from facility user charges.
Merchandise sales operations are forecast to rise year-on-year because of the growth in passenger volume
due to increased landing slots for international flights at Haneda.
Food and beverage operations are expected to grow compared to the previous year reflecting the expansionof stores at Haneda Airport’s international terminal despite the negative effect caused by the closure of a store.
Therefore, for consolidated performance in the fiscal year ending March 31, 2015, we forecast operating
revenue of ¥157,600 million (up 7.1% year-on-year), operating income of ¥8,300 million (up 34.0%), ordinary
income of ¥7,600 million (up 32.8%), and net income of ¥4,200 million (up 41.0%).

-3-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)(2) Analysis of Consolidated Financial Position
1) Assets, liabilities and net assets[Assets]
Current assets decreased by ¥495 million from the previous fiscal year end to ¥32,088 million, primarily due
to a decrease in cash and deposits of ¥991 million. Fixed assets decreased by ¥576 million from the previous
fiscal year end to ¥153,270 million, primarily due to a decline in tangible fixed assets of ¥6,579 million resulting
from the progress of depreciation, despite an increase in investment securities of ¥5,577 million.
As a result, total assets decreased by ¥1,072 million from the previous fiscal year end to ¥185,358 million.
[Liabilities]
Current liabilities increased by ¥1,403 million from the previous fiscal year end to ¥31,472 million, primarily
because of an increase in accounts payable of ¥674 million and in income taxes payable of ¥179 million. Fixedliabilities decreased by ¥3,709 million from the previous fiscal year end to ¥52,019 million, primarily because
long-term loans payable decreased by ¥4,972 million.
As a result, total liabilities decreased by ¥2,305 million from the previous fiscal year end to ¥83,492 million.
[Net assets]
Total net assets increased by ¥1,233 million to ¥101,866 million primarily because retained earnings
increased by ¥1,964 million, despite a decrease in total accumulated other comprehensive income of ¥676
million due mainly to remeasurements of defined benefit plans recorded under new accounting standard for
retirement benefits.
As a result, the equity ratio was 54.1% (compared to 53.1% at the previous fiscal year end).
2) Cash flows
Cash and cash equivalents (hereinafter referred to as “cash”) at the current fiscal year end decreased by¥1,017 million compared to the previous fiscal year end, to ¥15,133 million.
The following is a summary of cash flows and the factors behind these flows for the current fiscal year.
[Cash flows from operating activities]
Net cash provided by operating activities decreased by ¥491 million (down 3.1%) from the previous fiscal
year, to ¥15,204 million.
This was primarily due to an increase in income and other taxes paid, despite an increase in income before
income taxes and minority interests.
[Cash flows from investing activities]
Net cash used in investing activities decreased by ¥5,728 million (down 37.2%) from the previous fiscal year,to ¥9,660 million.
This was largely due to a decrease in the purchase of tangible fixed assets.
[Cash flows from financing activities]
Net cash used in financing activities increased by ¥1,590 million (up 31.9%) from the previous fiscal year, to¥6,574 million.
This was mainly due to an increase in the repayment of long-term loans, despite new long-term borrowings.
Cash flow indicators
Equity ratio (%)
Equity ratio based on market
value (%)
Debt to cash flow ratio (years)
Interest coverage ratio (times)

FY200954.4

FY201050.6

FY201151.7

FY201253.1

FY2013
54.1

56.0

42.1

46.8

54.7

117.5

4.1
16.7

5.7
11.8

4.3
13.9

3.8
17.3

3.5
15.2

Equity ratio: equity capital / total assets
Equity ratio based on market value: market capitalization / total assets
Debt to cash flow ratio: interest-bearing debt / operating cash flow
Interest coverage ratio: operating cash flow / interest payment-4-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)(Notes)1. All indicators are calculated using financial figures on a consolidated basis.
2. Market capitalization is calculated by multiplying the final stock price at term end by the number of shares outstanding at
term end (after deduction of treasury stock).
3. “Operating cash flow” uses cash flow from operating activities shown in consolidated statements of cash flows.
“Interest-bearing debt” refers to all debt posted in consolidated balance sheets for which interest is paid. “Interest
payment” refers to the interest paid on consolidated statements of cash flows.

(3) Basic Policy Regarding Distribution of Earnings and Dividends for the Year Ended March 31, 2014 and the YearEnding March 31, 2015
JAT considers distributing profits to shareholders an important issue. We have a basic policy of continuing
to pay stable dividends by taking a more aggressive stance toward business and striving to improve earnings,
while at the same time securing sufficient retained earnings in light of the possibility of large scale investments,
such as the maintenance of the domestic terminal buildings at Haneda Airport.
In light of above-mentioned dividend policy and business results, dividends for the current fiscal year will
come to ¥13 per share (of which ¥6 per share has already been paid as an interim dividend).
Regarding dividends for the next fiscal year, the JAT Group expects to pay an annual dividend of ¥13 pershare (of which ¥6.5 per share will be paid as an interim dividend), though the dividend policy will be flexibly
examined taking into account various prevailing factors, such as business conditions and results.

(4) Business and Other Risks
Matters that could significantly impact judgment by investors are discussed below.
Among these, those involving future considerations have been identified based on judgments made by the
JAT Group as of the end of the fiscal year ended March 31, 2014.
1) The JAT Group’s business baseAs a company that constructs, manages, and operates Haneda Airport’s domestic passenger terminalbuildings and other facilities, the JAT Group’s core businesses consist of the leasing of office and other spaces,
sales of merchandise, operation of food and beverage services, and the provision of travel-related services. We
also conduct operational services and wholesale business at Haneda Airport’s international passenger terminalbuilding. In addition, we engage in activities like sales of merchandise and the provision of food and beverage
services at Narita International Airport, Kansai International Airport, as well as other airports. The JAT Groupleases to other parties commercial real estate it owns outside of airports, and we apply experience andexpertise that we have accumulated over the years to develop promising new businesses, both inside andoutside of airport facilities.
2) Business risks for the JAT GroupThe JAT Group has identified the business risks described below. To minimize the business impact ofthese risks should they materialize, the JAT Group has diversified its revenue base both geographically (among
Haneda, Narita International, and other airports) and operationally (among facilities management operations,merchandise sales operations, and food and beverage operations). Moreover, it has strengthened measures toaddress the possibility of operating expense increases in each of its businesses. Through these and otherprudent steps, the JAT Group has endeavored to enhance its core business strengths and boost its overallcapabilities.
(i) The JAT Group’s core businesses consist of the leasing of offices and other spaces in airport passenger
terminal buildings and the operation of merchandise sales, food and beverage services and travel-related
services for air travelers. As such, it is highly reliant on the airline companies that are its primary lessees
and the air travelers who are its primary customers. Fluctuations in international and domestic passenger
volume resulting from international political or economic upheaval, natural disasters, and developments
like the emergence of new strains of influenza, and the business results of airline companies, could
significantly impact the JAT Group’s business results and financial position.
(ii) The JAT Group manages its key business – operation of the domestic and international passenger terminalbuildings at Haneda Airport – based on its designation as an Airport Facilities Operator pursuant toprovisions of The Airport Act. Therefore, legal or organizational changes concerning terminal building
operations and changes in airport management policy by the national government (which oversees airport
management) or regulatory authorities, could significantly impact the JAT Group’s business results and-5-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)

financial position.
(iii) Aimed at fueling the growth of the air transport industry and revitalizing the Japanese economy, theMinistry of Land, Infrastructure, Transport and Tourism (MLIT) has developed a growth strategy thatconsists of three cornerstones: air transport liberalization, promotion of the entry of new carriers (such as
LCCs) into the market, and reforms in airport management. Progress has been made toward the reform in
airport management, as evidenced by the newly-enacted law for “The operation of state-run airports, etc.
by utilizing the management capabilities of the private sector”. Therefore, the guidelines to be set forth by
the national government and regulatory authorities have the potential to significantly impact the JATGroup’s future business results and financial position(iv) The JAT Group has constructed and owns two domestic passenger terminal buildings and multilevelparking facilities at Haneda Airport. Within these two buildings, it leases offices as well as other spaces,
and operates merchandise sales, food and beverage services, and travel-related services. The JAT Grouphas endeavored to take all reasonable measures to prevent or respond to disasters, criminal activity, andaccidents, to promote the safe and comfortable operation of its terminal buildings. However, despite its best
efforts, earthquakes, fires, acts of terror, or other such events resulting in injuries, deaths, or property
damage at the airport or terminal buildings could significantly impact the JAT Group’s business results andfinancial position.
(v) The JAT Group operates airport food and beverage services, sells processed and other food products in
airport retail stores, and engages in the production and sale of in-flight meals. In pursuing these activities, itpays strict attention to food safety. Damage to the JAT Group’s reputation, administrative dispositions, andother such consequences of food poisoning, the inclusion of foreign objects in products, or other quality
assurance issues at a dining facility or retail store, for example, could significantly impact the JAT Group’sbusiness results and financial position.
(vi) The JAT Group, in order to efficiently and stably secure financing, has entered into syndicated loan
agreements with financial institutions. These agreements include financial and other covenants. The
violation of these covenants – for example, by a significant lowering of JAT’s credit rating following achange in tax regulations or the Group’s business environment – could result in the forfeiture of the benefitof time and significantly impact the JAT Group’s cash flow, business results, and financial position.

-6-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)

2. Outline of the Business GroupThe JAT Group (JAT and its group companies) consists of JAT (Japan Airport Terminal Co., Ltd.), 16
subsidiaries, and 10 affiliated companies. In addition to its main business of facilities management operations,
including the operation of domestic and international passenger terminals and the provision of services todomestic and international users of Haneda Airport, the JAT Group conducts merchandise sales operations andfood and beverage operations. Furthermore, the JAT Group conducts operations, such as merchandise sales at
Narita International Airport, Kansai International Airport, Central Japan International Airport, and Chengdu
Shuangliu International Airport (Chengdu, Sichuan province, China).
The following is a description of the position of JAT and its subsidiaries and affiliates within the corporategroup and the details of its operations.
Facilities management operations:
JAT and one of its affiliated companies operate domestic and international passenger terminal building
facilities at Haneda Airport, including the leasing of the facilities to aviation-related companies (particularly
airline companies) and the development and operation of these facilities.
In addition, Japan Airport Techno Co., Ltd., along with three other subsidiaries and six affiliated companies,
performs maintenance, operation, security and cleaning of facilities related to airport terminals, passenger
transportation, and ground handling operations. Furthermore, BIG WING Co., Ltd. and one other subsidiary
provide services, such as advertising agency operations and passenger services, at airport terminals.
Merchandise sales operations:
JAT, International Trade Inc., along with five other subsidiaries and three affiliated companies, conduct
merchandise sales operations. These companies carry out retail sales to parties such as airline passengers,
particularly those at Haneda Airport (domestic and international), Narita International Airport, and KansaiInternational Airport. Moreover, they sell wholesale to entities such as companies operating airport terminals,
particularly Central Japan International Airport.
In addition, a JAT subsidiary called Japan Airport Logitem Co., Ltd. conducts operations such as transporting
merchandise and managing warehouses.
Furthermore, another JAT subsidiary called as Japan Airport Terminal Trading (Chengdu) Co., Ltd. conducts
merchandise sales operations at Chengdu Shuangliu International Airport (Chengdu, Sichuan Province, China).
Food and beverage operations:
JAT, Tokyo Airport Restaurant Co., Ltd., one other subsidiary, and an affiliated company provide food andbeverage services to various parties, such as users of Haneda Airport (domestic and international) and Narita
International Airport.
Cosmo Enterprise Co., Ltd., one other subsidiary, and one affiliated company produce and sell in-flightmeals and frozen foods to airline companies mainly flying international routes through Haneda Airport andNarita International Airport. Another JAT subsidiary, Japan Airport Terminal Trading (Chengdu) Co., Ltd.
conducts food and beverage services in China (Chengdu, Sichuan Province).

-7-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)

The following diagram shows the operations discussed above.

Customers

Japan Airport Terminal Co., Ltd.
Facilities management operations
Haneda Airport Security Co., Ltd.
Haneda Passenger Service Co., Ltd.

SubsidiaryJapan Airport Ground Handling Co., Ltd.

Affiliated company

Airport Transport Service Co., Ltd.
Narita Airport Techno Corporation
Tokyo City Air Terminal Co., Ltd.
Seikousha Inc.
Kanto Kowa Co., Ltd.
SK Clean Service Co., Ltd.

Sakura Co., Ltd.

*1
*1
*1
*1

Merchandise sales operations
International Trade Inc.
Japan Airport Logitem Co., Ltd.
Haneda Airport Enterprise Co., Ltd.
Hamashin Co., Ltd.
Tsukizi Hamashin Co., Ltd.

BIG WING Co., Ltd.
Japan Airport Techno Co., Ltd.

*1
*1
*1
*1
*2

Food and beverage operations
Tokyo Airport Restaurant Co., Ltd.
Cosmo Enterprise Co., Ltd.
CTT Co., Ltd.
Kaikan Development Co., Ltd.

*1
*1
Japan Airport Terminal Trading (Chengdu) Co., Ltd.

*3
*3
*4
*4
*4
*4

*1
*1
*1
*1

Japan Trade Culture Inc.
Gran’ Bird Co., Ltd.

*4
*4

Tokyo International Air Terminal Corporation *3*1. Consolidated subsidiary: 15 companies*2. Non-consolidated subsidiary that is not accounted for using the equity method: one company*3. Affiliated company that is accounted for using the equity method: 4 companies*4. Affiliated company that is not accounted for using the equity method: 6 companies-8-

Japan Airport Delica Inc.

*1
*3

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)

3. Management Policy(1) Basic Management Policy
The JAT Group has a basic management philosophy to achieve harmony between society and business as acorporate group that constructs and manages domestic passenger terminals and other facilities at Haneda Airport,
the base of the domestic air transportation network.
Under this basic philosophy, the JAT Group is committed to fulfill its social responsibilities by ensuringsafety at terminals and operating customer-oriented terminals in a stable and efficient manner.
In order to continue to enhance corporate value, the JAT Group strives to improve the convenience, comfort,
and functionality of terminals through the implementation and management of strategically importantinvestments and by responding appropriately to increasingly sophisticated and diversified customer needs. As abasic management policy, we work to create value for stakeholders, including airline companies, airport users,
business partners, and shareholders.
JAT has been designated as an Airport Facilities Operator under The Airport Act. To fulfill its
responsibilities, JAT will take comprehensive measures to fully realize its basic management philosophy.
(2) Key Performance Indicator
In order to maximize the return on capital and thoroughly adopt management policies aimed at increasing
shareholder value, the JAT Group newly formulated a medium-term business plan. Under this plan, we will takes
necessary measures in facility development, revenue expansion, efficiency promotion, and other measures tosecure appropriate levels of earnings. Moreover, we aim to improve the Group’s performance measured in termsof return on assets (ROA) and return on equity (ROE), which we consider key performance indicators.
Furthermore, we will continue with efforts to maintain financial soundness by keeping our equity ratio above
50% through prudent management of borrowings and other liabilities.
(3) Mid- and Long-Term Business Plan and Issues which the Company Needs to Address
The JAT Group celebrated the 60th anniversary of its founding and developed a new medium-term businessplan (FY 2013 through FY 2015). Under the medium-term business plan, we have worked on strategic priorities
including 1) Responding to the internationalization of Haneda Airport, 2) Laying the groundwork to ensure thefuture of the airport’s operation and 3) Improving the profitability of group businesses.
In the airline industry, efforts have been made to transform Haneda Airport into an international air hub basedon the Ministry of Land, Infrastructure, Transport and Tourism’s Growth Strategy. Landing slots for international
flights at Haneda were increased from 60,000 to 90,000 annually from the end of March 2014. Furthermore, an
expansion of the international passenger building is planned, including the opening of a new hotel.
Meanwhile, environments surrounding the JAT Group are undergoing dramatic changes, including industry
liberalization, intensifying competition triggered by the expansion of LCC, and the ongoing review concerning
airport management, as evidenced by the newly-enacted law for “The operation of state-run airports, etc. byutilizing the management capabilities of the private sector”. With Tokyo hosting the 2020 Olympics andParalympics Games and the central government pushing for its policy toward a tourism-oriented country, it isessential to upgrade functions of airport infrastructure around the Tokyo metropolitan area.
Under these circumstances, in conjunction with the increased international flights after March 2014, atransfer facility between the domestic and international terminals was built at Haneda’s domestic passenger
terminal, in order to enhance customer convenience, comfort, and functionality. To further improve Haneda’s hub
function, we will proceed with efforts including those to make more multi-language options for the facility andservices available to better serve an increasing number of international visitors. Moreover, to take advantage ofthe significant business opportunities that Haneda Airport’s internationalization will bring, we will enhance theprofitability by expanding operations of new duty-free shops, facility maintenance and management, as well as
the operation of a new hotel at international passenger terminal. Based on these business expansions, we willcontinue to invest in capital expenditure and to develop a new rent structure for domestic terminals that reflects
the current situation with a view toward ensuring the future success of the airport’s operation. Furthermore, wewill also try to utilize our know-how to develop new businesses outside of Haneda Airport, including thepossibility of participating in new businesses at overseas airports, which would facilitate the evolution of Haneda
Airport’s operation. We aim to enhance the corporate value of the JAT Group by achieving greater efficiencies inexisting business, to strengthen our organizational capabilities, and to proceed steadily with corporate-wide
efforts to implement concrete strategies under the medium-term business plan in response to changing
environments.
We are proud that, for the second consecutive year, Haneda Airport was evaluated as #1 in the recent Skytrax
ranking of the "World's Best Domestic Airport" and "Best Airport Terminal Cleanliness" categories, and we
sincerely hope to continue to live up to this assessment. We will continue to put our customers first and ensurethat our facility and services offer convenience, comfort, and functionality to airport users, with a view toward
creating customer trust and loyalty.
The JAT Group is committed to carrying out its responsibilities as an Airport Facilities Operator, which-9-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)

constructs, operates, and manages domestic terminals at Haneda Airport, in compliance with The Airport Act. To
fulfill this mission, while respecting our core management philosophy of establishing harmony between society
and business, the entire Group is working in earnest to improve the convenience, comfort, and functionality of its
passenger terminal buildings by monitoring and taking into consideration various issues, such as the condition of
the Japanese economy as well as airline industry trends. We will continue to embrace a “customer-centric”
philosophy, ensure safety, and steadily move ahead with measures to continuously create value at Haneda Airportand contribute to the advancement of air transportation. Through these efforts, we proudly strive to enhance thecorporate value of the entire JAT Group.

- 10 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)

ASSETS
Current assets
Cash and deposits
Accounts receivable
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
Other investments
Total investments and other assets
Total fixed assets
TOTAL ASSETS- 11 -FY2012(As of March 31, 2013)

FY2013(As of March 31, 2014)

16,167
9,528
4,158
134
1,068
1,539
(12)
32,584

15,175
9,558
4,369
108
1,003
1,885
(12)
32,088265,219(165,240)
99,978
10,231(8,237)
1,994
10,4762,552(1,018)1,534
4,436
24,479(20,137)
4,341
122,761
2,214

272,769(174,638)
98,131
10,136(8,417)
1,719
10,4662,930(1,502)
1,428
325,906(21,472)
4,433
116,182
1,949

13,102
6,668
6,673
2,425
28,870
153,846
186,431

18,680
6,664
7,595
2,197
35,137
153,270
185,358

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)(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
Long-term loans payable
Lease obligations
Allowance for employees’ retirement benefits
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 or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS- 12 -FY2012(As of March 31, 2013)

FY2013(As of March 31, 2014)

5,062
12,104
1,831
896
152
10,02230,0695,737
12,272
2,010
1,052
170
10,22931,47244,702
1,572
4,770
－
443
4,240
55,72885,79839,730
1,216
－
6,786
449
3,836
52,01983,492

17,48921,30964,874(3,239)100,434

17,48921,30966,839(3,240)102,397

1,670

2,099

(3,073)20－(1,382)
1,581
100,633
186,431(2,626)51(1,583)(2,058)
1,527
101,866
185,358

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)

FY2012(from April 1, 2012
to March 31, 2013)
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
Amortization of negative goodwill
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Miscellaneous expenses
Total non-operating expenses
Ordinary income- 13 -FY2013(from April 1, 2013
to March 31, 2014)

13,274
15,764
14,55478,506
14,048136,149

13,355
16,487
15,03887,462
14,772
147,116

58,635
8,698
67,333
68,81564,9799,110
74,09073,026

8,034
845
152
907
8,331
13,812
12,865
19,68564,635
4,179

8,021
989
170
971
9,083
13,92012,68020,992
66,831
6,194

310
122
191
1,009
1,635

360
212
122
620
1,315

990
974
184
2,148
3,666

896
706
184
1,786
5,723

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)(Millions of yen)

FY2012(from April 1, 2012
to March 31, 2013)
Extraordinary gains
Gain on sales of investment securities
Gain on sales of fixed assets
Government subsidy
Total extraordinary gains
Extraordinary loss
Loss on valuation of investment securities
Impairment loss
Loss on reduction entry of fixed assets
Loss on retirement of fixed assets
Other extraordinary loss
Total extraordinary loss
Income before income taxes and minority interests
Income taxes – current
Income taxes – deferred
Total income taxes
Income before minority interests
Minority interests income
Net income- 14 -FY2013(from April 1, 2013
to March 31, 2014)

14
－
－
14

－
90
89
180

32
8
－
－
1
42
3,638
2,126
(164)
1,962
1,675
51
1,624

－
87
88
42
16
235
5,668
2,905
(242)
2,662
3,005
25
2,979

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)

Consolidated Statements of Comprehensive Income(Millions of yen)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
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 minority
interests- 15 -FY2012(from April 1, 2012
to March 31, 2013)
1,675

FY2013(from April 1, 2013
to March 31, 2014)
3,005

669
21

431
31

(569)

446

121
1,797

909
3,914

1,743

3,886

53

27

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)(3) Consolidated Statements of Changes in Shareholders’ Equity
FY2012 (from April 1, 2012 to March 31, 2013)(Millions of yen)
Shareholders’ equity

Balance at the beginning of current period

Common stock

Capital surplus

17,48921,309Retainedearnings

Treasury stock

63,818(3,238)

Total
shareholders’equity99,379Changes during current period
Dividend from retained earnings

(568)

(568)

Net income

1,624

1,624

Purchase of treasury stock

(1)

(1)

Changes of items other than shareholders’equity during current period (net)Total changes during current period

－

－

1,056

(1)

1,054

Balance at the end of current period

17,48921,30964,874(3,239)100,434

Accumulated other comprehensive income
Deferred gains
or losses onhedges

1,003(2,503)

(1)

666

(569)

21

－

118

Total changes during current period

666

(569)

21

－

118

Balance at the end of current period

1,670(3,073)20－(1,382)

Balance at the beginning of current period

Foreigncurrencytranslation
adjustment

Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
income－(1,500)

Valuationdifference on
available-for-salesecurities

Changes during current period
Dividend from retained earnings
Net income
Purchase of treasury stock
Changes of items other than shareholders’equity during current period (net)

Balance at the beginning of current period

Minority
interests
1,555

Total net assets
99,433

Changes during current period
Dividend from retained earnings(568)

Net income

1,624

Purchase of treasury stock
Changes of items other than shareholders’

(1)
25

144

Total changes during current period

25

1,199

Balance at the end of current period

1,581

100,633

equity during current period (net)- 16 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)

FY2013 (from April 1, 2013 to March 31, 2014)(Millions of yen)
Shareholders’ equity

Balance at the beginning of current period

Common stock

Capital surplus

17,48921,309Retainedearnings

Treasury stock

64,874(3,239)Total
shareholders’equity100,434

Changes during current period
Dividend from retained earnings(1,015)(1,015)

Net income

2,979

2,979

Purchase of treasury stock

(0)

(0)

Changes of items other than shareholders’equity during current period (net)Total changes during current period

－

－

1,964

(0)

1,963

Balance at the end of current period

17,48921,30966,839(3,240)102,397

Accumulated other comprehensive income
Deferred gains
or losses onhedges

1,670(3,073)

20

428

446

31

(1,583)(676)

Total changes during current period

428

446

31

(1,583)(676)

Balance at the end of current period

2,099(2,626)51(1,583)(2,058)

Balance at the beginning of current period

Foreigncurrencytranslation
adjustment

Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
income－(1,382)

Valuationdifference on
available-for-salesecurities

Changes during current period
Dividend from retained earnings
Net income
Purchase of treasury stock
Changes of items other than shareholders’equity during current period (net)

Balance at the beginning of current period

Minority
interests
1,581

Total net assets
100,633

Changes during current period
Dividend from retained earnings(1,015)

Net income

2,979

Purchase of treasury stock
Changes of items other than shareholders’

(0)
(53)

(730)

Total changes during current period

(53)

1,233

Balance at the end of current period

1,527

101,866

equity during current period (net)- 17 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)(4) Consolidated Statements of Cash Flows(Millions of yen)

FY2012(from April 1, 2012
to March 31, 2013)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of negative goodwill
Increase (decrease) in allowance for employees’ bonuses
Increase (decrease) in allowance for directors’ bonuses
Increase (decrease) in allowance for employees’
retirement benefits
Increase (decrease) in net defined benefit liabilities
Interest and dividends income
Interest expenses
Equity in losses (earnings) of affiliates
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss on retirement of tangible fixed assets
Loss (gain) on sales of fixed assets
Government subsidy
Loss on reduction entry of fixed assets
Decrease (increase) in accounts receivable – trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in accounts payable - trade
Increase (decrease) in other current liabilities
Increase (decrease) in other fixed liabilities
OthersSubtotalInterest and dividends received
Interest paid
Income and other taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchase of intangible fixed assets
Payments for asset retirement obligations
Purchase of long-term prepaid expenses
Payments of long-term loans receivable
Proceeds from government subsidy
Other payments
Other proceeds
OthersNet cash provided by (used in) investing activities- 18 -FY2013(from April 1, 2013
to March 31, 2014)

3,638
12,939
8
(191)
95
152

5,668
12,747
87
(122)
155
18

(93)

(4,770)

－
(433)
990
974
(14)
32
107
(0)
－
－
3
(846)
265
(138)
(370)
(223)
(15)
16,880
424
(909)
(700)
15,695

4,679
(572)
896
706
－
－
42
(90)
(89)
88
(28)
(178)
(138)
674
(1,122)(306)
119
18,463528(1,000)(2,787)
15,204(24)
78(6,938)11(7,478)
1
(597)
(167)
(28)
(1)
－
(284)
33
6
(15,389)(26)－(5,329)－(4,074)
102
(338)
－
(32)
(2)
89
(94)
36
7
(9,660)Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)(Millions of yen)

FY2012(from April 1, 2012
to March 31, 2013)
Cash flows from financing activities
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayments of lease obligations
Dividends paid by parent company
Dividends paid to minority shareholders
OthersNet cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period- 19 -FY2013(from April 1, 2013
to March 31, 2014)

(120)
5,000
(8,610)
(655)
(568)
(28)
(1)
(4,983)－
7,300(12,104)(725)(1,015)(28)(0)(6,574)12

12(4,664)
20,816
16,151(1,017)
16,151
15,133

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)(5) Notes on the Consolidated Financial Statements(Notes on the Premise of a Going Concern)
There is nothing to report.
(Notes on Changes in Accounting Policies)(Application of accounting standard for retirement benefits)
Effective from the end of FY 2013, the Company has applied the “Accounting Standard for Retirement Benefits”(ASBJ Statement No. 26, May 17, 2012) and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ
Guidance No. 25, May 17, 2012) (except for the provisions of the main clauses of Paragraph 35 of the AccountingStandard for Retirement Benefits and Paragraph 67 of the Guidance on Accounting Standard for Retirement Benefits).
Under the new standard, the Company has changed its accounting policy to one that recognizes the difference between
retirement benefit obligations and plan assets as net defined benefit liabilities and has recorded unrecognized actuarial
gains or losses and unrecognized past service costs under net defined benefit liabilities.
With the application of the Accounting Standard for Retirement Benefits, the Company has followed thetransitional treatment set forth in Paragraph 37 of the Accounting Standard for Retirement Benefits. The effects arisingfrom such changes have been added to or subtracted from remeasurements of defined benefit plans under accumulated
other comprehensive income at the end of the current fiscal year.
As a result, at the end of FY2013, net defined benefit liabilities of ¥6,786 million was recorded, while
accumulated other comprehensive income decreased by ¥1,583 million and minority interests decreased by ¥53
million. Net assets per share decreased by ¥20.15.

(Notes on Changes in Presentation)(Consolidated Statements of Income)“Contributions in aid of construction”, which was recorded as separate item in the previous fiscal year, is now
included in “Miscellaneous income” under “Non-operating income” in the current fiscal year because “Contributions
in aid of construction” now accounts for 10% or less than total of non-operating income. To reflect this change inpresentation, the consolidated financial statements of the previous fiscal year have been reclassified.
As a result, ¥255 million recorded as “Contributions in aid of construction” under “Non-operating income” in the
consolidated statements of income of the previous fiscal year has been reclassified as “Miscellaneous income”.
“Loss on valuation of other investments”, which was recorded as separate item in the previous fiscal year, is now
included in “Other extraordinary loss” under “Extraordinary loss” in the current fiscal year because “Loss on valuationof other investments” now accounts for 10% or less than total of extraordinary loss. To reflect this change inpresentation, the consolidated financial statements of the previous fiscal year have been reclassified.
As a result, ¥1 million recorded as “Loss on valuation of other investments” under “Extraordinary loss” in the
consolidated statements of income of the previous fiscal year has been reclassified as “Others extraordinary loss”.

- 20 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)(Notes on Consolidated Balance Sheets)
1. Assets pledged as collateral and corresponding liabilities with collateral
The following are assets pledged as collateral.
(Millions of yen)

FY2012(As of March 31, 2013)
80,91453
80,968

Buildings and structures
Land
Total

FY2013(As of March 31, 2014)
80,79853
80,852

The followings are liabilities for which assets are pledged as collateral.
(Millions of yen)

FY2012(As of March 31, 2013)
9,496
35,79445,290

Short-term loans payable
Long-term loans payable
Total

FY2013(As of March 31, 2014)
9,664
26,13035,794

2. The following items are related to non-consolidated subsidiaries and affiliated companies.
(Millions of yen)

FY2012(As of March 31, 2013)
3,288
1,332

Investment securities (shares)
Investment securities (corporate bonds)

FY2013(As of March 31, 2014)
2,882
6,660

3. Liabilities guaranteed
The Company provides a guarantee to the following group company for its borrowing from financial institutions.
(Millions of yen)

FY2012(As of March 31, 2013)
Japan Airport Delica Inc.
548
(borrowing)
548 million yen

FY2013(As of March 31, 2014)
Japan Airport Delica Inc.
548
(borrowing)
548 million yen

4. Amount of reduction entry
Due to receipt of government subsidy, etc. for the acquisition of assets, reduction entry of the following amount was
deducted from the acquisition costs of tangible fixed assets.
(Millions of yen)

Buildings and structures

FY2012(As of March 31, 2013)-- 21 -FY2013(As of March 31, 2014)88

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)(Notes on Consolidated Statements of Income)
1. Impairment loss
The JAT Group recognized impairment loss on the assets as follows:
FY2012 (from April 1, 2012 to March 31, 2013)
Location
Use
Type
Impairment loss
Ota-ku, TokyoStore (Food andMachinery, equipment and vehicles
8 million yen
beverage)
The JAT Group classifies assets into groups primarily according to business locations.
By examining impairment for fixed assets based on the groupings, the business assets owned by a consolidated
subsidiary whose profitability declined were identified. Based on the judgment that the carrying amount isunrecoverable, total carrying amount of the assets was recognized as impairment loss, which consists of ¥8 million
for machinery, equipment and vehicles.
FY2013 (from April 1, 2013 to March 31, 2014)
Location
Use
Type
Impairment loss
Shibuya-ku, TokyoStore (Merchandise sales) Buildings and structures, and others
26 million yen
Store
(Food
and
Buildings
andstructures,
andothers61 million yen
Sichuan Province,
beverage,andChinamerchandise sales)
The JAT Group classifies assets into groups primarily according to business locations.
By examining impairment for fixed assets based on the groupings, the business assets owned by the Company
and a consolidated subsidiary whose profitability declined were identified. The carrying amount of those assets was
reduced to the recoverable value and the reduced amount was recognized as impairment loss. The loss consists of¥62 million for buildings and structures, and ¥24 million for others.
2. Gain on sales of fixed assets(Millions of yen)Land

FY2012(from April 1, 2012
to March 31, 2013)－

FY2013(from April 1, 2013
to March 31, 2014)
90

FY2012(from April 1, 2012
to March 31, 2013)－－－－

FY2013(from April 1, 2013
to March 31, 2014)
30
9
2
42

3. Loss on retirement of fixed assets(Millions of yen)

Buildings and structures
Machinery, equipment and vehicles
OthersTotal- 22 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)(Notes on Consolidated Statements of Comprehensive Income)1. Amount of reclassification adjustment involved in other comprehensive income
FY2012(from April 1, 2012
to March 31, 2013)
Valuation difference on available-for-sale securities
Amount arising during the fiscal year
978
Reclassification adjustment
15
Total
994
Foreign currency translation adjustment
Amount arising during the fiscal year
21
Reclassification adjustment
Total
21
Share of other comprehensive income of associates
accounted for using equity method
Amount arising during the fiscal year
(569)
Reclassification adjustment
Total
(569)
Pre-adjustment of tax effect446
Tax effect amount(325)
Total other comprehensive income
121
2. Amount of tax effect involved in other comprehensive income- 23 -FY2013(from April 1, 2013
to March 31, 2014)
654
654
31
31

446
446
1,132
(223)
909
(Millions of yen)

FY2012(from April 1, 2012
to March 31, 2013)
Valuation difference on available-for-sale securities
Pre-adjustment of tax effectTax effect amountNet-of-tax
Foreign currency translation adjustment
Pre-adjustment of tax effectTax effect amountNet-of-tax
Share of other comprehensive income of associates
accounted for using equity method
Pre-adjustment of tax effectTax effect amountNet-of-tax
Total other comprehensive income
Pre-adjustment of tax effectTax effect amountNet-of-tax(Millions of yen)

FY2013(from April 1, 2013
to March 31, 2014)

944
(325)
669

654
(223)
431

21
21

31
31

(569)
(569)

446
446

446
(325)
121

1,132
(223)
909

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)(Notes on Consolidated Statements of Changes in Shareholders’ Equity)
FY2012 (from April 1, 2012 to March 31, 2013)
1. Type and total number of shares outstanding, and type and number of treasury stock
Number of shares at the
beginning of the fiscal
year

Increase in the numberof shares during the
fiscal year

Decrease in the numberof shares during the
fiscal year

Number of shares at the
fiscal year end

84,476,500
84,476,500

－
－

－
－

84,476,500
84,476,500

3,244,814
3,244,814

1,353
1,353

－
－

3,246,167
3,246,167

Shares outstanding
Common stock
Total
Treasury stock
Common stock(Note )Total

Note: 1,353 shares of increase in common treasury stock resulted from the purchase of odd lot shares.

2. Dividends(1) Amount of dividends paid
Resolution
June 28, 2012
Ordinary General
Meeting of Shareholders
November 7, 2012
Board of Directors
MeetingType ofstock

Total dividends(Millions of yen)

Dividends per
share (Yen)Record date

Effective dateCommon
stock

284

3.5

March 31,2012

June 29, 2012

Common
stock

284

3.5

September 30,
2012

December 10,
2012(2) Dividends for which the record date came during FY2012, but for which the effective date will come after said period
Total dividends
Dividends
Type of
Source ofEffective
Resolution
to be paid
per share
Record datestock
dividends
date(Millions of yen)
(Yen)
June 27, 2013
Ordinary General
CommonRetained
March 31,
June 28,527
6.5
Meeting ofstock
earnings
2013
2013
Shareholders- 24 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)

FY2013 (from April 1, 2013 to March 31, 2014)
1. Type and total number of shares outstanding, and type and number of treasury stock
Number of shares at the
beginning of the fiscal
year

Increase in the numberof shares during the
fiscal year

Decrease in the numberof shares during the
fiscal year

Number of shares at the
fiscal year end

84,476,500
84,476,500

－
－

－
－

84,476,500
84,476,500

3,246,167
3,246,167

515
515

－
－

3,246,682
3,246,682

Shares outstanding
Common stock
Total
Treasury stock
Common stock(Note )Total

Note: 515 shares of increase in common treasury stock resulted from the purchase of odd lot shares.

2. Dividends(1) Amount of dividends paid
Resolution
June 27, 2013
Ordinary General
Meeting of Shareholders
November 6, 2013
Board of Directors
MeetingType ofstock

Total dividends(Millions of yen)

Dividends per
share (Yen)Record date

Effective dateCommon
stock

527

6.5

March 31,2013

June 28, 2013

Common
stock

487

6.0

September 30,
2013

December 9,
2013(2) Dividends for which the record date came during FY2013, but for which the effective date will come after said period
The following resolution is planned to be made.
Dividends
Type of
Total dividends
Source ofEffective
Resolution
per share
Record datestock(Millions of yen)
dividends
date
(Yen)
June 27, 2014
Ordinary General
CommonRetained
March 31,
June 30,568
7.0
Meeting ofstock
earnings
2014
2014
Shareholders(Notes on Consolidated Statements of Cash Flows)
Relationship between the closing balance of cash and cash equivalents and the value of items listed on the consolidatedbalance sheets(Millions of yen)

FY2012(from April 1, 2012
to March 31, 2013)
16,167(16)
16,151

Cash and deposits
Time deposits with a maturity greater than 3 months
Cash and cash equivalents- 25 -FY2013(from April 1, 2013
to March 31, 2014)
15,175(42)
15,133

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)(Segment Information)
1. Overview of reportable segments
The reportable segments of the Group are units for which separate financial information is available and whose
operating results are regularly reviewed by the Board of Directors in order to decide how to allocate management
resources and evaluate their performances.
The Company is primarily engaged in the management of passenger terminal buildings and the provision ofservices to users at Haneda Airport. Business divisions at the Company’s headquarters develop comprehensive
business strategies and pursue business activities.
The Company is, therefore, composed of business segments with different services based on the businessdivisions. Its three reportable segments are the facilities management operations, merchandise sales operations, andfood and beverage operations.
The segment of facilities management operations leases, maintains and repairs, and operates passenger terminal
facilities at Haneda Airport. It also provides services for passengers. The segment of merchandise sales operations is
engaged in retail sales of products to passengers and others, wholesales of products to companies operating airport
terminals and others, and other activities incidental to these two sales operations. The segment of food and beverage
operations provides food and beverage services to parties including users of Haneda Airport and Narita International
Airport. It is also engaged in the production and sales of in-flight meals and other incidental activities.
2. Method of calculations of sales, income (loss), assets, liabilities, and other items by reportable segments
Accounting methods for reportable business segments are, in general, the same as those described in “Basic
Important Conditions to Prepare the Consolidated Financial Statements.”
Segment income (loss) is based on operating income (loss).
Intersegment sales and transfers are based on prevailing market price.
3. Sales, income (loss), assets, liabilities, and other items by reportable segments
FY2012 (from April 1, 2012 to March 31, 2013)(Millions of yen)

Reportable segments

Consolidated
financialstatements

Facilities
Management

Merchandise
Sales

42,731

78,586

14,830136,149-

136,149

2,038

614

2,039

4,692

(4,692)-

44,7703,353
117,406

79,201
4,630
23,322

16,870106
13,265140,841
8,090
153,994(4,692)(3,910)32,436

136,149
4,179
186,431

Depreciation andamortization

10,7091,175

552

12,437501

12,939

Increase in tangible fixed
assets and intangible fixed
assets

6,599

961

134

7,695

50

7,745

Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income (loss)
Segment assets
Other items

Food andBeverage

Adjustments- 26 -Total

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2014 (FY2013)

FY2013 (from April 1, 2013 to March 31, 2014)(Millions of yen)

Reportable segments

Consolidated
financialstatements

Facilities
Management

Merchandise
Sales

44,11587,505

15,496

147,116-

147,116

2,112

645

2,088

4,846

(4,846)-46,2283,656
112,872

88,150
6,515
23,633

17,584147
13,450151,963
10,318
149,956(4,846)(4,124)35,402

147,116
6,194
185,358

Depreciation andamortization

10,703

1,108

486

12,297450

12,747

Increase in tangible fixed
assets and intangible fixed
assets

5,447

314

208

5,970

241

6,212

Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income (loss)
Segment assets
Other items

Food andBeverage

Adjustments- 27 -

Total