Japan Airport Terminal Co., Ltd.
Financial Results Briefing for the Fiscal Year Ended March 2023
May 18, 2023

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 2023

[Fiscal Period]

FY2023 Annual[Date]

May 18, 2023

[Number of Pages]

21[Time]

15:00 – 15:28(Total: 28 minutes, Presentation: 28 minutes)[Venue]Webcast[Venue Size][Participants][Number of Speakers]

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5Isao Takashiro
Nobuaki Yokota
Masatoshi Akahori
Hiroshi Onishi
Kazuhito Tanaka

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

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Presentation
Moderator: Now that the time has arrived, we will now begin the briefing on the full-year financial results forthe fiscal year ended March 31, 2023, of Japan Airport Terminal Co., Ltd. Thank you all very much for taking
time out of your busy schedules to attend today's meeting. First of all, this event is held at the venue and isalso streamed live online. I would now like to introduce today's participants. Mr. Isao Takashiro, Chairman
and CEO.
Takashiro: I’m Takashiro. Thank you very much for coming.
Moderator: Mr. Nobuaki Yokota, President and COO.
Yokota: I'm Yokota. Thank you very much for coming.
Moderator: Mr. Masatoshi Akahori, Executive Vice President.
Akahori: I’m Akahori. Thank you very much for coming.
Moderator: Mr. Hiroshi Onishi, Executive Vice President.
Onishi: I’m Onishi. Thank you very much for coming.
Moderator: Mr. Kazuhito Tanaka, Senior Managing Director.
Tanaka: I’m Tanaka. Thank you very much for coming.
Moderator: That is all those present. I will continue with a check of today's materials. Presentation materials
have been distributed to the audience. If you are watching the live webcast, you can download thepresentation materials from the web page you are viewing, under the tab Presenters/Materials. Please use
the materials.
Next, I will explain the contents of today's presentation. President Yokota will first give a 30-minutepresentation with the presentation material. We will then take your questions. The event is scheduled tofinish at 4:00 PM.
Let us now begin the presentation. President Yokota, please start your presentation.

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Yokota: Hello, I am Yokota, President and COO. Thank you very much for your continued understanding andsupport of our business operations.
Today, in our briefing on the financial results for the fiscal year ended March 31, 2023, I would like to present
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 our sustainability
initiatives.

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3See page two. First, let me explain the situation in the previous fiscal year.
As for the business environment, although COVID-19 spread twice in the summer and winter, society as awhole has gradually returned to normal, and since the fall, nationwide travel support has started, andimmigration restrictions have been greatly eased.
On the other hand, prices of commodities have continued to rise due to soaring resource prices and the weakyen, and a labor shortage has become apparent in airport operations.
Passenger volume at Haneda Airport increased significantly from the previous year, and domestic flights
recovered steadily. However, business demand was slow to recover, and because of this, the volume wasslightly lower than the revised forecast.
Passenger volume on international flights exceeded the revised forecast by about 20%, due to an increase
mainly in non-Chinese inbound passengers.

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4See page three. As shown in the red box in the document, consolidated results for the fiscal year ended March
31, 2023, are as follows: Net sales of JPY113 billion, operating loss of JPY10.5 billion, ordinary loss of JPY12
billion, and net loss of approximately JPY3.9 billion.
Compared to the previous fiscal year, sales increased in all segments as a result of an increase in merchandise
sales and facility usage fee revenues due to a recovery in the number of passengers.
In the fall and thereafter, earnings improved significantly from the previous year, partly due to a rapid
recovery in international flights, but the slow recovery up to H1 resulted in a consolidated loss for the third
consecutive fiscal year.
On the other hand, compared to the revised forecast, both sales and P&L have exceeded the forecast, partly
because the recovery of international flights has been faster than expected.
We have decided to resume dividend payments for the first time in three years, based on this situation, future
prospects and other factors. The year-end dividend was JPY16 per share.

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5Then see page four. Next, I will explain the forecast for the current fiscal year.
As for the business environment, COVID-19’s status as an infectious disease has been reclassified to Class 5,
the same as seasonal influenza, since May 8.
As we move toward the normalization of social and economic activities, we expect inbound demand fromforeign visitors to Japan to remain strong.
In addition, wages of workers are on an upward trend due to labor shortages in addition to rising prices causedby high resource prices and a weak yen.
In terms of passenger volume at Haneda Airport, as for domestic flights, there is a steady recovery in demand
from Japanese travelers. There is also demand from foreign visitors to Japan who are transferring between
flights. We assume that the volume will recover to a level close to the level before COVID-19.
On the other hand, international flights saw an increase in passenger volume, especially among Chinese
nationals, especially [inaudible] and business visitors from abroad to Japan, as a result of the end of bordermeasures. We assume that the volume will recover to approximately the same level as before COVID-19.

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Now please see page five. As shown in the red box, we forecast sales of JPY195.7 billion, operating income of
JPY15.4 billion, ordinary income of JPY13.1 billion, and net income of JPY9 billion for the current fiscal year.
Sales are expected to increase in all segments as passenger volume recovers.
Consolidated financial results are expected to improve significantly and are expected to be profitable for the
first time in four years.
On the other hand, promptly responding to rapidly recovering passenger demand will be the key to improving
future performance.
In addition, we plan to pay a dividend of JPY32 per share, in line with our basic policy for returning profits toshareholders, which is to maintain stable dividends and aim for a payout ratio of 30% or more.

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7See page six. Here, we would like to explain the assumptions underlying our earnings forecasts.
First of all, I would like to show you the number of passengers on domestic and international flights at Haneda
Airport and our consolidated quarterly results.
We expect that operating income will become profitable in Q1 and will improve steadily thereafter, but we
expect profits to decline temporarily in Q4 due to an increase in expenses caused by one-time construction
projects to be completed at the end of the fiscal year and others.
Next is a breakdown of international passenger volume by direction.
The second vertical axis from the right is the number of passengers after the expansion of arrival anddeparture slots in March 2020, which is taken as 100%. The numbers of passengers by direction are shown asa percentage. As of H1, we expect North American routes to be well ahead of the level before COVID-19.
Although recovery has been slower in China, we expect the overall recovery to reach FY2019 levels.
While European routes will be sluggish due to the avoidance of flights over Russia, China routes are expected
to recover in earnest from H2.

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8See page seven. In order to accommodate future passenger growth, we are currently in discussions with thegovernment, airlines, and other related parties to reopen the Terminal 2 international flight facilities, whichwere suspended due to COVID-19, as soon as possible.
Although the medium-term management plan anticipated that this facility would resume operations in
FY2024, the budget for the current fiscal year assumed that it would resume operations in July.
In Terminal 3, we are working to capture recovering passenger demand by renovating and relocating
commercial facilities in the duty-free and lobby areas, while reopening stores that had been closed andgradually reviewing their hours of operation.

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9See page eight. I would like to explain the personnel situation in our company.
In the midst of a difficult business environment due to COVID-19 pandemic, we did everything we could interms of compensation and strived to maintain the employment of full-time employees in anticipation of thetime when demand will recover. During this period, we have made effective use of human resources by suchmeans as bringing operations in-house, but due to natural attrition resulting from retirements and a decreasein the number of non-regular employees, the number of employees has decreased by approximately 40% of
the total workforce.
On the other hand, demand for air travel has recovered rapidly since last fall, and we are experiencing ashortage of labor, especially in international flight stores and lounges. Therefore, we have been strengthening
our recruitment of human resources, by holding joint group company information sessions and othermeasures. In addition to hiring new graduates, we will actively recruit mid-career employees and non-regular
employees. We will also implement base increases to cope with rising prices, restore bonus levels that werereduced due to COVID-19 pandemic, and take other measures to improve compensation in order to retain
personnel, aiming to quickly restore the stable operating structure that existed before COVID-19 pandemic.
The airline industry as a whole is experiencing a shortage of personnel for security inspections, etc. We will
work proactively to address this issue in cooperation with the government and airline companies.
As for selling, general and administrative expenses, we expect various expenses to increase in association withincreases in passenger volume, sales and prices, as well as maintenance and repair expenses to increase.

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10See page nine. This section shows the passenger volume forecast to FY2025 and the guidelines for FY2025.
There is no change in the target for passenger volume for FY2025. For FY2024, we didn’t change the target
for domestic flights and raised the target for international flights.
We have set guidelines and target income/expenses, and for the current fiscal year, we expect to achieve halfof the JPY30 billion operating income target for FY2025. Compared to the time when the medium-term plan
was formulated, high resource prices and accompanying price hikes have exceeded expectations. However,
we will work to achieve the goals by steadily implementing measures planned in the medium-term plan.

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11See page 10. This section shows the roadmap for each measure.
In the facility management and operation business, we will review operations and reduce maintenance andmanagement costs by utilizing robots and other technologies to achieve both high quality and increased
profits. In addition, we will work to increase revenues through renewal of commercial facilities and leasing of
vacant parcels to raise rents and other revenues, and we will also consider appropriate pricing in light of therecent sharp rise in prices.
In the merchandise sales/restaurant business, the Company is implementing relocation of stores, including
the introduction of top brands to duty-free stores. In addition, the Company will review its product mix,
service, operations, and cost ratio, while expanding earnings through measures such as original productdevelopment. In addition, in response to the increase in the number of international passengers, we intend
to expand our duty-free reservation service. We will also aim to develop new sales channels in cross-border
e-commerce. Well will expand our sales channels through our e-commerce business.
Furthermore, in order to respond to changing consumption trends, we will strengthen one-to-one marketing
and work to uncover customer needs.
In terms of the organization, we will build a corporate culture that encourages people to think independently
and take on challenges through ensuring diversity of human resources, inner branding activities, and plus one
promotion.

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12See page 11. This section shows the status of capital investment.
Currently, there is no change in the investment amount of JPY105 billion for the plan period. About half of
this amount, JPY53 billion, will be invested in domestic flight satellite improvement work to meet future
growth in airline demand and to further improve passenger convenience through the funds raised by capitalincrease.
The work to connect the main building and the satellite of Terminal 2, which has already begun, is scheduled
for completion in FY2024, and the construction of a new north satellite for Terminal 1, which will begin thisfiscal year, will be completed in FY2025.
Other investments will amount to approximately JPY52 billion.
As for sustainability-related activities, we expect to spend JPY8 billion for facilities for CO2 reduction, including
one-time expenses, but additional investments may be required once the initiatives that we will consider go
into full swing.

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13See page 12. We have positioned sustainability as the core of our strategy promotion, established a basic
policy, and put in place a promotion system. In order to further evolve and promote sustainability
management, we have recently formulated a mid-term sustainability plan with materialities, key issues, and
KPIs as outlines.
First, in considering the materialities of our group, we selected 30 candidate items based on the guidelines ofindustry associations, international guidelines related to sustainability, and our business strategy.
After that, we mapped them with two axes of publicness and corporateness, which are important perspectives
for our group. We evaluated importance by considering not only our own group but also the perspectives ofour stakeholders and asked for opinions from outside experts to incorporate outside perspectives, and wehave selected eight materialities.

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14See page 13. The eight materialities are divided into three categories: E for environment, S for social, and G
for governance.
Environment has two items: combatting climate change and effective use of limited resources.
Social has four items: Creation of safe, comfortable, and advanced airports, contribution to local and regional
communities, human resources development, and promotion of diversity and inclusion and respect for humanrights.
Governance has two items: The promotion of fair business activities and the strengthening of risk
management.
For each materiality, we have organized the relationship between the Group's business and social issues andestablished 17 initiatives to resolve them.
Next, we set 27 KPIs to serve as evaluation indicators for progress management, and for each KPI we set atarget year and a specific plan.
Under the sustainability promotion system, we will regularly manage the progress of the plan for KPIs andrevise the plan as necessary to resolve materialities.

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15See page 14. This section shows the relationship between the strategic direction indicated in the mid-termbusiness plan and the eight materialities.
By continuously working on the materialities, which are also consistent with the direction of our strategy, we
will strive to realize the advanced airport 2030 that is friendly to people and the environment as stated in our
mid-term management plan.

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16See page 15. This section describes the disclosure of information based on the TCFD recommendations.
We think that climate change is also as an important business issue. In September last year, we expressed our
support for the TCFD recommendations, and in May this year, we disclosed information on governance,
strategy, risk management, and indicators and targets, which are items recommended for disclosure.
As for governance, the sustainability committee, chaired by the president, formulates policies, manages
progress, and reports to the management conference and the Board of Directors.
For strategy, we have analyzed two scenarios, 1.5°C and 4°C, to assess the impact of climate change on ourgroup's business. We have identified risks and opportunities for each scenario, evaluated the degree of impact,
and established measures to address the risks.
Regarding risk management, the risk management committee established in April of this year will examineand evaluate climate change-related risks that have a significant impact on our business and performance aspriority risks and review them as necessary.
As for the indicators and targets, we have set a long-term goal of reducing greenhouse gas emissions by 46%
from FY2013 level by 2030 and achieving carbon neutrality by 2050.

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17See page 16. The KPI for greenhouse gas emissions is the amount of energy-derived CO2 emissions from theGroup's own energy consumption in its operations at Haneda Airport.
We have been working with stakeholders at Haneda Airport to reduce our environmental impact within theframework of the Tokyo International Airport Council of the Ministry of Land, Infrastructure, Transport andTourism.
On the other hand, since the effects of those energy-saving measures alone are limited, we are investigating
and studying new energy fields such as the use of hydrogen. However, since the path to achieving carbon
neutrality bears uncertainty, we will continue to flexibly consider various options, including future innovativetechnologies.
We will continue to recognize the business environment in which we operate, and in cooperation with our
stakeholders, promote effective emission reductions at the airport as a whole, deepen our analysis of risks
and opportunities related to climate change, promote measures to deal with climate change, and disclose
relevant information.

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Lastly, with the normalization of socioeconomic activities, airline demand has entered a phase in which it has
exceeded the level before COVID-19 in some areas. There are many issues that need to be addressed, such as
soaring resource prices, labor shortages, the transition to a digital society, and the situation surrounding
decarbonization. However, in this situation, we will firmly keep our long-term goals in mind and steadily
implement necessary measures.
We would like to ask for your continued understanding and support. That is all for the explanation. Thank youvery much.
Moderator: Thank you very much.
[END]______________
Document Notes
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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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