Japan Airport Terminal Co., Ltd.
Financial Results Briefing for the Fiscal Year Ended March 2024
May 15, 2024

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

[Company ID]

9706-QCODE[Event Language]

JPN[Event Type]Earnings Announcement[Event Name]

Financial Results Briefing for the Fiscal Year Ended March 2024

[Fiscal Period]

FY2024 Annual[Date]

May 15, 2024

[Number of Pages]

21[Time]

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

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5Isao Takashiro
Nobuaki Yokota
Hiroshi Onishi
Kazuhito Tanaka
Masatoshi Akahori

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Presentation
Moderator: Now that the time has come, we will now hold the Japan Airport Terminal Co., Ltd. financial
results briefing for the fiscal year ended March 2024.
Thank you all very much for taking time out of your busy schedules to attend today's meeting. First of all, I
would like to introduce today's attendees. Mr. Isao Takashiro, Chairman and CEO.
Takashiro: My name is Takashiro. Best regards.
Moderator: Mr. Nobuaki Yokota, President and COO.
Yokota: My name is Yokota. Thank you for your cooperation.
Moderator: Mr. Hiroshi Onishi, Executive Vice President.
Onishi: My name is Onishi. Thank you for your cooperation.
Moderator: Mr. Kazuhito Tanaka, Executive Vice President.
Tanaka: My name is Tanaka. Thank you for your cooperation.
Moderator: Mr. Masatoshi Akahori, President and CEO, Tokyo International Air Terminal Corporation.
Akahori: My name is Akahori. Thank you for your cooperation.
Moderator: That is all those present.
We will continue with today's materials.
Presentation materials and other documents are available on the Company website. Those watching the live
webcast will be able to download materials from the web screen you are viewing, the explainer, slash, andmaterials tabs. Please take advantage of it.
Next, I will explain the contents of today's proceedings.
First, President Yokota will give an approximately 30-minute presentation along with the presentationmaterials. We will then call you to answer any questions you may have. Please note that we cannot accept
questions via the web.
Let us now begin our presentation. President Yokota, thank you for your time.
Yokota: My name is Yokota, President and Representative Director. We truly appreciate your continued
understanding and support of our business operations.
Today, on the occasion of the presentation of our financial results for the fiscal year ended March 31, 2024, I
will give a summary of our consolidated financial results for the previous fiscal year, our consolidated
earnings forecast for the current fiscal year, the progress of our medium-term management plan, and oursustainability initiatives.

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Please see page two. First, I would like to explain the situation in the previous fiscal year.
In terms of the business environment, restrictions on behavior related to new coronavirus infections havebeen fully lifted, and society, as a whole, has become more normalized. In this context, the number offoreign visitors to Japan continues to increase significantly, and concerns about overtourism are becoming
apparent in some areas.
On the other hand, in addition to rising prices due to surging resource prices and a weak JPY, wages arerising due to labor shortages, and the inflationary trend is taking hold.
Passenger volume at Haneda Airport was almost in line with the revised forecast.
Domestic routes recovered to approximately 90% of the pre-corona level, mainly due to a steady recovery inpassenger demand.
On the other hand, the number of international flights exceeded the number before the corona disaster andreached a record high due to strong inbound demand.

See page three.
As shown in the red box in the document, consolidated results for the fiscal year ended March 31, 2024 are
as follows: net sales of JPY217.5 billion, operating income of JPY29.5 billion, ordinary income of JPY27.2
billion, and net income of JPY19.2 billion.
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Sales were higher than the previous year in all segments due to an increase in merchandise sales and facility
user fee revenues, driven by a recovery in passenger volume and strong inbound demand. Not only did wereturn to profitability for the first time in four fiscal years, but operating income and ordinary income havejust reached record highs.
Compared to the revised forecast, sales and income both exceeded the forecast due to continued strong
sales at duty-free stores. In light of this situation, we have increased the year-end dividend by JPY12 fromthe forecast made last October and added a commemorative dividend of JPY5 per share for the 70th
anniversary of the Company's founding, resulting in a dividend of JPY42 per share. This will result in anannual dividend of JPY67 per share and a payout ratio of 32%.

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4See page four. Next, I will explain our forecast for the current fiscal year.
In the business environment, we expect the inflationary trend to continue as the synergy between wages
and prices strengthens and the JPY tends to weaken. In addition, the shortage of supply capacity in theconstruction and logistics industries due to the revision of laws and regulations has affected all sectors of
the industry. Inbound demand continues to be strong, but the uncertainty of the Chinese economy andinstability in the global situation are causes for concern.
As for passenger volume at Haneda Airport, demand for domestic flights will further recover. We expect the
number of passengers to recover to 95% of the pre-corona level. However, in the current April, it is below
the previous year's level and a bit below the budgeted value as well.
On the other hand, international flights continue to grow strongly and are expected to increase to the levelof 84% of the expected passenger volume after the expansion of arrival and departure slots. Forinternational flights, both YoY and budgeted figures for the month of April were higher than the previous
year.
In response to the medium-term management plan, we have lowered our passenger forecasts for both
domestic and international flights for the current fiscal year.

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5See page five. This section shows a breakdown of international passenger volume by direction.
The number of passengers after the expansion of the arrival and departure slots in March 2020 is set at
100%, and the number of passengers by area is shown as a percentage by year.
In FY2023, both the number of flights and the number of passengers exceeded those before the coronadisaster, and since there was an increase in the number of flights in the summer schedule from March ofthis year, we expect further growth in the future.
In FY2024, we expect a gradual increase in passenger volume to China, where recovery has been slow, whilesome European flights will still be affected by the avoidance of flights over Russia.
In order to cope with the increase in the number of passengers, we will expand the operation of theinternational facilities in terminal two and begin swing operations from the summer timetable, switching
between domestic and international flights at some spots depending on the time of day.

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6See page six.
As shown in the red box, we expect net sales of JPY253.8 billion, operating income of JPY27.1 billion,
ordinary income of JPY24.3 billion, and net income of JPY15.5 billion for the current fiscal year. Sales are
expected to increase in all segments due to passenger volume growth.
On the other hand, the increase in expenses, due to the expansion of terminal operations and other factors,
is expected to exceed the increase in sales, resulting in a decrease in profit. However, compared to theassumptions made in the medium-term management plan for the current fiscal year, passenger volume has
been lowered, but profits will be higher.
The Company plans to pay a dividend of JPY62 per share, the same amount as the previous fiscal year,
excluding the commemorative dividend of JPY5 per share.

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7See page seven. Here is the performance forecast by segment.
First, in the facility management and operation business, although revenue is expected to increase due to anincrease in facility usage fees resulting from an increase in the number of passengers, income is expected todecrease due to an increase in terminal maintenance and management costs.
Expenses are expected to increase, especially in Q4, due to construction to be completed at the end of the
fiscal year.
In the goods sales business, inbound demand will continue to be strong, and both sales and profits are
expected to increase.
For duty-free stores at Haneda Airport, we expect a slight decrease in the unit purchase price, but an
improvement in the purchase rate, and an increase in sales over and above the growth in the number ofpassengers.

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8See page eight. Here I will explain the status of staffing.
Although the corona disaster has reduced its workforce by approximately 40%, it has also drasticallyreviewed its operations and restructured its service delivery process to improve the efficiency of its
workforce.
Subsequently, the rapid increase in the number of international passengers led to personnel shortages invarious fields, and we stepped up our recruitment efforts. However, since it inevitably takes a certain
amount of time to hire permanent employees, we first increased the number of non-permanent employees
to secure the necessary number of personnel.
In addition, we are working to improve compensation by implementing base increases and raising hourly
wage rates, and we are also striving to build a system that encourages the growth of each and every worker
by establishing a specialist system and expanding our education and training programs.
The number of employees for the entire group is expected to be almost fully filled by the end of the current
fiscal year, which is approximately 10% less than the size before the corona disaster.
We will continue to invest in human capital and work to improve labor productivity, as well as hire morepermanent employees, with the goal of filling our workforce in terms of both quality and quantity.

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9See page nine. Here I will explain the status of selling, general and administrative expenses.
In the previous fiscal year, we felt that we had to deal with various operational issues in response to therapid increase in the number of international passengers, but this fiscal year, while the pace of passenger
growth is slowing down, we will work to expand our services and improve quality, such as starting swing
operations at terminal two. However, we expect a corresponding increase in maintenance and management
costs.
In addition to increasing maintenance and repairs, which were reduced to the minimum necessary during
the corona disaster, we will respond by actively updating facilities to enhance functions and improve
convenience, as well as construction work related to reducing CO2 emissions.
In addition, the performance-linked portion of international flights will increase in rent, and utility expenses
are expected to increase due in part to the expansion of terminal operations.
In addition, variable costs are expected to increase in line with the increase in passenger volume and sales,
and various expenses are expected to increase in line with rising prices.

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10See page 10. Here is a forecast of passenger volume at Haneda Airport through FY2025.
In the current medium-term management plan, it was assumed that the number of passengers would reachthe number of passengers after the expansion of arrival and departure slots in FY2025, which was prepared
before the corona disaster, but we have revised the assumption in the current forecast based on the actual
results to date.
For domestic routes, considering the weak recovery in business demand to date, we have set the target at
97% of the pre-corona target for FY2025.
For international flights, we considered that some slots for arrivals and departures would not be used due tothe avoidance of flights over Russia. The forecast has also been lowered to reflect the impact of the airline's
fleet renewal in the corona disaster.

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11See page 11. The target income and expenditures for FY2025 have been reviewed in light of the current
situation.
In addition to the downward revision of the passenger volume forecast for both domestic and international
flights, the increase in labor costs and various expenses due to soaring prices will be a major factor in thedecrease in profits.
On the other hand, the Company will steadily earn income from strong merchandise sales, as well as fromrent income through the renewal of commercial areas and the attraction of office space, thanks to the store
management and merchandise purchasing patterns that materialized after the corona disaster, as well aschanges in various merchandise policies.
In addition, the completion date of the satellite facility on the north side of terminal one was changed to
FY2026, and the cost impact of this change has been adjusted, as well as changes in the environment since
the medium-term management plan was formulated and cost fluctuations resulting from the effects of themeasures taken in response.
As a result, we have revised up operating income by JPY4 billion and net income by JPY4 billion. Although we
expect a decrease in profit once this fiscal year, we aim to regain this in the next fiscal year and further
exceed our target.

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12See page 12. This section shows the goals for each project in FY2025, and the main initiatives for FY2023 andFY2024.
In the facility management and operation business, in order to achieve both high quality and higher profits,
we will continue to utilize robots and other technologies and review operations to curb increases inmaintenance and management costs, while reorganizing and improving loan parcels, revitalizing commercial
areas, and attracting office space, thereby increasing rent and other revenues.
In addition, we will promote the use of DX to understand data on human flow in the building and promote
the enhancement of its function as an airport infrastructure.
In the goods sales and food and beverage businesses, we will continue to attract new brands in duty-freeareas, renovate stores by relocating existing brands, and develop original products and services in tie-ups
with brands to capture inbound demand, and in domestic flights, we will expand the development of highpriced products and reduce manpower in-store operations.
In addition, we will steadily implement environmental improvements such as the installation of robotic
warehouses, the use of RFID tags, and the development of a core system for our directly managed ecommerce site and develop our business in a way that will help us secure future sales.

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13See page 13.
There is no change in the KPI of the medium-term management plan except for the increase in the profit
level this time.
The KPIs are shown in dark blue with white-out areas. Here, KPIs are classified into financial and nonfinancial indicators, and financial indicators are shown stratified by component. The main measurescorresponding to each element are then listed, indicating that sustainability is a common element in allmeasures.
We use ROA as an indicator for our business development, taking into account the characteristics of owninga passenger terminal and developing our business while maintaining the facilities. We also believe it isimportant to maintain a capital adequacy ratio above a certain level from the standpoint of stability and tomaintain our current A+ rating.
On this basis, we set the profit level as an indicator to increase earning power, and the amount of cost
reduction as a target to improve efficiency and productivity.
Furthermore, we will continue to listen to our customers, including SKYTRAX evaluations, as we strive foreven higher quality and higher efficiency in our operations to make the terminal even better. We willcontinue to strive for continuous company growth and increased profits by steadily advancing each of themeasures in the medium-term management plan.

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14See page 14. This section provides a picture of the inflows, the targeted allocation of funds, and the use offunds over the next two years.
The amount of funds to be raised will vary depending on the situation, although it is expected to be fundedby cash flow from operating activities and debt financing. The first step in allocating these funds will becapital investment, but since the funds for satellite facilities have already been procured, the funds will beallocated to other investments.
Next, as for repayment obligations, in addition to the scheduled repayment of long-term debt, we areconsidering alternative funding sources for the redemption of bonds and the scheduled interest rate step-up
on the hybrid loan.
We have positioned the return of profits to shareholders as one of our most important tasks. By returning
profits to shareholders with a target payout ratio of 30% or more and putting the remainder into retained
earnings, we will rebuild our financial base damaged by the corona disaster and establish a strong financial
position for future investments.

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15See page 15.
We have reviewed our capital investment plan and revised it upward by about JPY20 billion.
In the medium-term management plan, we had refrained from investment in international flights, but inorder to cope with faster-than-expected passenger growth, we will bring forward the renewal andexpansion of facilities to improve convenience and enhance functions, and also increase investment inmaintenance and management and store renovation work.
The increase also reflected higher material prices and labor costs, as well as changes in delivery dates.
On the other hand, the completion date of the terminal one north satellite facility has been changed to
FY2026 due to the adjustment of the construction period with the government and other related parties.
This facility uses a hybrid wood/steel structure and is designed to be environmentally friendly, with a large
amount of wood used for the interior and exterior, and is aiming to obtain ZEB Oriented certification, which
is a certification for buildings with low-energy consumption.

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16See page 16. This section provides an explanation of the disclosure regarding the TNFD recommendations.
We disclosed information based on the TCFD recommendations last May, and we are currently in theprocess of conducting an evaluation and analysis based on the TNFD recommendations, and we agree withthem and have disclosed the information at this time.
The details are disclosed on our website, but we have summarized the four areas of governance, strategy,
risk and impact management, and indicators and targets based on the data available at this time.
Our materiality is to counter climate change and to make effective use of limited resources. Therefore, wewill continue to further analyze risks and opportunities. We will then set indicators and targets and strive toenhance our response measures.

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17See page 17. Here we would like to share with you some of our initiatives for a decarbonized society.
In collaboration with ENEOS, we aim to reduce CO2 emissions by supplying CO2-free hydrogen from ourhydrogen supply base in the Keihin waterfront area to the Haneda Airport terminal by around 2030 and to
supply electricity and heat through in-house power generation using a hydrogen-fueled cogeneration
system.
In addition, to contribute to the reduction of CO2 emissions in the aviation sector as a whole, we are also
considering a joint SAF supply and sales business with Euglena Co., Ltd.
In April of this year, the Ministry of Land, Infrastructure, Transport, and Tourism announced a plan topromote the decarbonization of Haneda Airport, and as the operator of the passenger terminal, we will
actively work toward achieving carbon neutrality by 2050.
Last but not least, the Japanese economy as a whole appears to be undergoing major changes as the JPY
remains at historically low levels, the inflationary trend continues, and the Nikkei Stock Average has reached
an all-time high. Under these circumstances, we will continue to capitalize on strong inbound demand andrespond to the changing times while firmly tying our business performance to it.
We appreciate your continued understanding and support. That is all for the explanation. Thank you very
much.
[END]

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Document Notes
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4.

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

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