Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2012 (FY2011) [J-GAAP](Consolidated)
November 9, 2011
This document has been translated from the Japanese original, for reference purposes only. In the event of any discrepancy between thistranslated document and the Japanese original, the original shall prevail.

Listed company name:
Code number:
Representative:

Japan Airport Terminal Co., Ltd.
9706
Isao Takashiro, President
Masumi Matsumoto, Vice President,
Contact:
Administration Department
Scheduled date of securities report submission:
Scheduled date of dividend payment commencement:
Preparation of quarterly earnings presentation material (yes/no):
Holding of quarterly earnings announcement (yes/no):

Listing exchange: Tokyo, 1st Section
URL: http://www.tokyo-airport-bldg.co.jp/
TEL:03-5757-8030

November 14, 2011
December 12, 2011No
Yes (for financial analysts and institutional investors)(Figures shown are rounded down to the nearest million yen.)

1.
(1)

Consolidated Financial Results for the First Six Months of FY2011 (April 1, 2011 to September 30, 2011)
Consolidated Business Results (Cumulative)(Percentage figures indicate the rates of changes from the same period of the previous fiscal year.)First Six Months of
FY2011FY2010Operating revenues

Operating income(loss)

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

62,587

(3.8)

(237)

—

(780)

—

(903)

—

65,078

8.1

3,389

44.7

3,161

37.6

1,271

(1.7)

Note: Comprehensive income (loss) First six months of FY2011:
First six months of FY2010:

Diluted net income per share

Yen

Yen

(11.21)

—

15.82

—

FY2010Consolidated Financial Position
Total assets

As of March 31, 2011
Reference: Equity capital

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

193,687

101,40551.4

1,226.59

As of September 30, 20112.

Net income (loss)-¥1,680 million (— %)-¥84 million (— %)Net income (loss) per shareFirst Six Months of
FY2011(2)

Ordinary income(loss)

199,045
102,562
50.6
As of September 30, 2011: ¥99,638 million
As of March 31, 2011: ¥100,709 million

1,252.82

Dividends
Annual dividends
First quarter-end
Yen

Secondquarter-end

Third quarter-end
Yen

FY2010—3.50

FY2011—

3.50

Year-end

Yen—

FY2011(forecast)—
Note: Revisions to the most recently announced dividends forecast for FY2011 during the period: Yes

Annual
Yen

Yen

3.50

7.00

3.50

7.00

For the revision of dividends forecast, please refer to the “Notification of Revised Distribution of Surplus and Dividend Forecast” released on November
9, 2011 (in Japanese only).

3.

Forecast of Consolidated Financial Results for the FY2011 (April 1, 2011 to March 31, 2012)(Percentage figures indicate the rates of changes from the previous fiscal year)

Operating revenues
Millions of yen%

Operating income
Millions of yen

Ordinary loss%

Millions of yen

Net loss per
share

Net loss%

Millions of yen%

Yen

Full-year
131,700(2.3)
500(88.1)(800)—(1,300)—(16.07)
Note: Revisions to the most recently announced forecast of consolidated financial results for FY2011 during the period: None

4. Other Information(1)
Changes in significant subsidiaries during the period under review (Changes in specific subsidiaries involving
changes in scope of consolidation): None
Note: This refers to changes in specified subsidiaries resulting in change of scope of consolidation during the quarter.

(2)

Adoption of specific methods for preparation of the quarterly consolidated financial statements: Yes

Note: For details, please refer to “(2) Adoption of Specific Accounting Methods for Preparation of the Quarterly Consolidated
Financial Statements of Summery (Other) Information” on page 4 of the attached document.

(3)

(4)

Changes in accounting policies, accounting estimates and restatement of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement of revisions: None
Number of shares outstanding (common stock)1) Number of shares outstanding as of theperiod-end (including treasury stock)2) Number of treasury stock as of theperiod-end
3) Average number of shares outstanding(quarterly consolidated cumulative
period)As of September 30,
2011:
As of September 30,
2011:
First six months of
FY2011:

84,476,500 shares As of March 31,
2011:
3,244,774 shares As of March 31,
2011:
80,571,439 shares First six months of
FY2010:84,476,500 shares
4,089,744 shares
80,387,002 shares* Implementation status of quarterly review procedures
The quarterly review procedure based on the Financial Instruments and Exchange Act does not apply to this Financial
Report, and the quarterly review procedure based on the Financial Instruments and Exchange Act had not been
completed as of the release of this Financial Report.
* Presentation regarding the proper use of financial forecast and other special remarks
1. The statement about the future including the financial forecast in this document was made based on information
available and deemed reasonable at the time the material was released and actual earnings may differ from the forecast
due to various factors.
2. For matters related to financial forecast mentioned above, please refer to page 3 of the attached document “(3)Qualitative Information on Forecast of Consolidated Financial Results of 1. Qualitative Information on Consolidated
Financial Results for the First Six Months of FY2011 (April 1, 2011 to September 30, 2011)”.

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2012 (FY2011){ Contents of the Appendix Materials
1. Qualitative Information on Consolidated Financial Results for the First Six Months of FY2011 (April 1, 2011 to
September 30, 2011).........................................................................................................................................................2(1) Qualitative Information on Consolidated Business Results........................................................................................2(2) Qualitative Information on Consolidated Financial Position......................................................................................3(3) Qualitative Information on Forecast of Consolidated Financial Results ....................................................................3
2. Summary (Other) Information..........................................................................................................................................4(1) Changes in Significant Subsidiaries during the Period under Review........................................................................4(2) Adoption of Specific Accounting Methods for Preparation of the Quarterly Consolidated Financial Statements .....4
3. Quarterly Consolidated Financial Statements...................................................................................................................5(1) Quarterly Consolidated Balance Sheets......................................................................................................................5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income.7
Quarterly Consolidated Statements of Comprehensive Income .................................................................................9(3) Notes to the Premise of a Going Concern.................................................................................................................10(4) Segment Information, etc. ........................................................................................................................................10(5) Notes to a Significant Change in Shareholders’ Equity ............................................................................................101

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2012 (FY2011)

1.
Qualitative Information on Consolidated Financial Results for the First Six Months of FY2011 (April 1,
2011 to September 30, 2011)(1)

Qualitative Information on Consolidated Business Results
During the first six months of the fiscal year ending March 31, 2012, the Japanese economy continued to be plaguedby severe conditions, including declines in corporate earnings, due to the impacts of the Great East Japan Earthquakeand other factors. Nevertheless, an upturn in consumer spending and other signs of recovery were also seen. As for the
future, though it is expected that economic conditions will continue to improve, there are still risks that factors such as
impacts of the nuclear disaster, downturns in overseas economies, and exchange rate or stock price fluctuations could
result in another downturn.
In the airline industry, post-disaster passenger volume on both domestic and international flights at the beginning of
the year was down significantly, compared to the same period of the previous year, but the sizes of the negative
margins have gradually narrowed. Looking at international passenger volume at Tokyo International Airport (Haneda)
alone, the commencement of regular international flights following the opening of Runway D in October of last year
pushed the first-quarter figure well beyond that for the same period of the previous year.
Now in the second year of its medium-term business plan (FY2010 – FY2012), the Japan Airport Terminal (JAT)Group has steadily implemented renovation plans for the domestic Terminal 1 building and pursued efforts to expand
both its consigned services and wholesaling of merchandise at the new international passenger terminal building. At
the same time, we have also actively worked to invigorate commercial facilities and cut store operation, utility, andother expenses wherever possible.
In a new initiative, we have embarked on overseas business development efforts, including the opening of a retailstore in China's Chengdu Shuangliu International Airport (Chengdu, Sichuan Province). In addition, we have not only
constructed a boat landing on the left bank of the Tama River to promote tourism in connection with theinternationalization of Haneda Airport and serve disaster prevention purposes, but also entered into capital andbusiness alliance agreements with JALUX Inc. and Sojitz Corporation to enhance the provision of services and goods
to users of Haneda Airport.
Business results for the first six months reflected an earnings decline that was anticipated in the medium-termbusiness plan and resulted from factors like an increase in depreciation expenses related to Haneda Airport’s domestic
Terminal 2 expansion (south side of the main building). Earnings, however, were also hurt by a decline in rent revenue
following the returns of leased offices in Haneda Airport’s domestic passenger terminal building by airline companies,
an increase in fees for temporary usage of national government property, and post-disaster declines in domestic andinternational passenger volume.
As a result, consolidated operating revenues for the current six months fell 3.8% compared with the same period of
the previous year, to ¥62,587 million. Operating loss was ¥237 million (compared to an operating income of ¥3,389
million for the same period of the previous year). Ordinary loss was ¥780 million (compared to an ordinary income of¥3,161 million for the same period of the previous year). Net loss was ¥930 million (compared to a net income of¥1,271 million for the same period of the previous year).
The following is earnings by segment. It should be noted that figures for operating income (loss) are equivalent tothose of segment income (loss).
[Facilities Management]
Rent revenue, even with the negative impact of return of leased offices in Haneda Airport’s domestic Terminal 1
building by airline companies, ended the first three months slightly ahead of the figure for the same period of theprevious year because of developments like the expansion of leasable space following the opening of the domestic
Terminal 2 expansion (south side of the main building).
Facility user charges revenue benefited from an increase in user charges revenues for domestic terminal facilities,
following a rate revision for domestic passenger facilities, however, following the closing of the former internationalterminal building, total facility user charges revenue came in below the figure for the same period of the previous year.
Other revenues greatly surpassed the figure for the same period of the previous year because of higher revenues
from facility maintenance and other consigned services related to the new international passenger terminal building.
As a result, operating revenues from the facilities management operations increased 5.6% compared with the same
period of the previous year to ¥22,101 million. Operating income decreased 82.5% to ¥348 million, due to factors likea temporary increase in fees for usage of national government property and an increase in depreciation expenses
related to the opening of Haneda Airport’s domestic Terminal 2 expansion (south side of the main building).
[Merchandise Sales]
Efforts were made to increase sales at domestic terminal stores by, for example, opening new directly managed stores
2

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2012 (FY2011)

in the domestic Terminal 2 expansion (south side of the main building) at Haneda Airport. They were not enough,however, to overcome negative impacts like the decrease in domestic passenger volume following the earthquake.
Sales, therefore, came in below the figure for the same period of the previous year.
Similarly, sales at international terminal stores, despite benefiting from openings of directly managed stores in
Haneda Airport’s new international terminal building, were not sufficient to overcome the closings of directly
managed stores in the former international terminal building, nor the consequences of the Great East Japan Earthquake
and nuclear disaster and the effects of rapid yen appreciation, which caused a decline in foreign visitors to Japan. Sales,
therefore, fell significantly below the level for the same period of the previous year.
Other sales, benefiting from factors like the wholesaling of products to stores in the new international passenger
terminal building, exceeded the previous year’s figure.
As a result, operating revenues from merchandise sales operations decreased 9.0% to ¥34,953 million and operating
income fell 43.6% to ¥2,005 million compared with the same period of the previous year respectively.
[Food and Beverage]
Sales from food and beverage operations were helped by the openings of new directly managed stores in Haneda
Airport’s domestic Terminal 2 expansion (south side of the main building) and new international passenger terminalbuilding, but those positive contributions were not enough to offset the impact of lower domestic passenger volume,and sales for the current period declined largely compared with the same period of the previous year.
Sales from in-flight meals also fell as foreign carriers canceled flights one after another in response to theearthquake and nuclear accident.
Other sales, however, substantially surpassed the figure for the same period of the previous year by a wide margin
on the strength of consigned service of managing food and beverage facilities in the new international passenger
terminal building.
As a result, operating revenues from food and beverage operations fell 6.8% compared with the same period of theprevious year to ¥7,658 million. The failure of operating expenses to decline in line with revenues resulted in an
operating loss of ¥516 million (compared to an operating profit of ¥20 million for the same period of the previousyear). the operating loss up to ¥516 million (compared to an operating income of ¥20 million for the same period of
the previous year).
(2)

Qualitative Information on Consolidated Financial Position[Assets, liabilities and net assets]
Total assets decreased ¥5,358 million from the previous fiscal year end to ¥193,687 million mainly because cash andtime deposits and other current assets decreased.
Total liabilities decreased ¥4,200 million to ¥92,282 million mainly because long-term loans payable decreased.
Total net assets decreased ¥1,157 million to ¥101,405 million mainly because retained earnings decreased.
Accordingly, the equity ratio came to 51.4%.

(3)

Qualitative Information on Forecast of Consolidated Financial Results
As for the JAT Group’s consolidated results for the first six months, domestic and international passenger figures,
which were expected to decline significantly due to the impacts of the Great East Japan Earthquake, recovered more
quickly than the initial forecast. As a result, its operating revenues surpassed the previously announced forecast, andactual operating, ordinary, and quarterly losses improved much greater than expected.
Entering the second half of the fiscal year under review, we are expecting that repairing expenses will increase aspart of capital investments have been postponed from the first half. However, with an outlook for ongoing recovery inpassenger volume, we are looking for full-year operating revenues to beat initial forecasts and are expecting that
operating, ordinary, and net income (loss) results will be much better than previously forecast.
That said, however, there are lingering concerns regarding the impacts of the nuclear disaster, concerns for
economic slowdowns overseas, risks of exchange rate or stock price fluctuations leading to an economic downturn,and potential unexpected delays in the recovery of foreign visitor numbers.
As for the outlook for full-year consolidated results, updates have been made as discussed in the “Notification of
Revised Forecast of Consolidated Financial Results” released on November 2, 2011(in Japanese only).
The dividend forecast has been revised in view of the updated full-year consolidated results outlook. For details,
please refer to the “Notification of Revised Distribution of Surplus and Dividend Forecast” released on November 9,2011(in Japanese only).

3Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2012 (FY2011)

2. Summary (Other) Information(1)

Changes in Significant Subsidiaries during the Period under Review
There is nothing to report.

(2)

Adoption of Specific Accounting Methods for Preparation of the Quarterly Consolidated Financial Statements

Calculation of tax expenses
Tax expenses are calculated by making a reasonable estimation of the effective tax rate on income before taxes forthe current fiscal year including the second quarter after the application of deferred tax accounting and applying theestimated effective tax rate to quarterly income before taxes.

4Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2012 (FY2011)

3. Quarterly Consolidated Financial Statements(1)

Quarterly Consolidated Balance Sheets(Millions of yen)

FY2010(As of March 31, 2011)

First Six Months of
FY2011(As of September 30,
2011)

ASSETS
Current assets
Cash and time deposits

21,86919,539Accounts receivable

8,070

8,816

Marketable securities

559

259

Merchandise and finished products

3,402

3,117

Raw materials and stored goods

144

142

Deferred tax assets

1,269

1,286

Other current assets

5,143

1,956

(49)

(52)

40,41035,066257,308

262,177

Accumulated depreciation and impairment loss

(145,224)(150,493)

Buildings and structures, net

112,084

111,683

Machines, devices and vehicles

10,295

10,306

Accumulated depreciation and impairment loss

(8,770)(8,939)Machines, devices and vehicles, net

1,524

1,367

Land

10,575

10,575

Lease assets

2,466

2,466

Accumulated depreciation and impairment loss

(169)

(377)

Lease assets, net

2,297

2,089

Construction in progress

2,287

1,415

Other fixed assets

22,68023,773(17,540)(18,360)

Other fixed assets, net

5,139

5,412

Total tangible fixed assets

133,909132,543

1,804

1,945

Investment securities

5,993

6,836

Long-term loans receivable

6,623

6,476

Deferred tax assets

8,371

8,641

Other investments

1,933

2,177

Total investments and other assets

22,921

24,131

Total fixed assets

158,634

158,620

TOTAL ASSETS

199,045

193,687

Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures

Accumulated depreciation and impairment loss

Intangible fixed assets
Investments and other assets

5Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2012 (FY2011)(Millions of yen)

FY2010(As of March 31, 2011)

First Six Months of
FY2011(As of September 30,
2011)

LIABILITIESCurrent liabilities
Accounts payable

4,736

4,808

Short-term loans payable

11,338

9,862

Income taxes payable

912

612

Allowance for employees’ bonuses

908

839

Allowance for directors’ bonuses

100－

Asset retirement obligations

156

4

Other current liabilities

10,201

14,423

Total current liabilities

28,35430,550Long-term loans payable

54,41649,670Allowance for employees’ retirement benefits

4,980

4,812

Lease liabilities

2,535

2,316

Fixed liabilities

Asset retirement obligations

261

348

Other fixed liabilities

5,935

4,584

Total fixed liabilities

68,12861,731TOTAL LIABILITIES

96,48392,282

Common stock

17,48917,489

Capital surplus

21,30921,309Retained earnings

67,01065,814

Treasury stock(4,081)(3,238)

Total shareholders’ equity

101,727

101,375

881

837(1,898)(2,574)－(0)Total accumulated other comprehensive income(1,017)(1,737)

Minority interests

1,852

1,766

TOTAL NET ASSETS

102,562

101,405

TOTAL LIABILITIES AND NET ASSETS

199,045

193,687

NET ASSETS
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment

6Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2012 (FY2011)(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income(Millions of yen)First Six Months of
FY2010(from April 1, 2010
to September 30, 2010)
Operating revenues
Rent revenue

First Six Months of
FY2011(from April 1, 2011
to September 30, 2011)

7,053

7,129

Facility user charges revenue

8,222

7,608

Other revenues

4,617

6,851

Sale of merchandise

38,05334,605

Sale of food and beverage

7,130

6,391

Total operating revenues

65,07862,587

Cost of sales of merchandise

28,013

26,154

Cost of sales of food and beverage

4,417

4,193

Total cost of sales

32,43030,34832,64732,239

3,445

3,595

Provision for employees’ bonuses

915

788

Provision for directors’ bonuses

60－

Expenses for retirement benefits

426

463

Rent expenses

3,542

3,819

Outsourcing and commission

4,069

6,396

Depreciation expenses

5,858

6,685

Other costs and expenses

10,94010,726

Total selling, general and administrative expenses

29,25832,476

3,389

(237)

Interest income

50

152

Dividends income

41

44

Miscellaneous income

495

579

Total non-operating income

587

776

Interest expenses

505

553

Equity in losses of affiliates

30

715

Miscellaneous expenses

278

50

Total non-operating expenses

815

1,319

3,161

(780)

Gain on sales of investment securities－

26

Total extraordinary income－

26

Cost of sales

Gross profit
Selling, general and administrative expenses
Salaries and wages

Operating income (loss)
Non-operating income

Non-operating expenses

Ordinary income (loss)
Extraordinary income

7Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2012 (FY2011)

First Six Months of
FY2010(from April 1, 2010
to September 30, 2010)

First Six Months of
FY2011(from April 1, 2011
to September 30, 2011)

Extraordinary loss
Loss on valuation of investment securities

52－

Loss on adjustment for changes of accounting standard for
asset retirement obligations

765－

Loss on disaster－46

Total extraordinary loss

817

46

Quarterly income (loss) before income taxes and minority
interests

2,343

(800)

Income taxes－current

1,074

159

Quarterly income (loss) before minority interests

1,269

(960)

(2)

(57)

1,271

(903)

Minority interests in loss
Quarterly net income (loss)

8

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2012 (FY2011)

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)First Six Months of
FY2010(from April 1, 2010
to September 30, 2010)
1,269

First Six Months of
FY2011(from April 1, 2011
to September 30, 2011)(960)

Valuation difference on available-for-sale securities

(5)

(43)

Deferred gains (losses) on hedges

50Foreign currency translation adjustment－(0)(1,354)(676)(1,353)

(719)

(84)

(1,680)(82)(1,622)(2)(57)

Quarterly income (loss) before minority interests
Other comprehensive income

Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income (loss)
Comprehensive income (loss) attributable to owners of theparentComprehensive income (loss) attributable to minority
interests

9

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2012 (FY2011)(3) Notes to the Premise of a Going Concern
There is nothing to report.
(4)

Segment Information, etc.

I. First six months of FY2010 (April 1, 2010 to September 30, 2010)
1. Operating revenues, income or loss by reportable segment(Millions of yen)

Reportable segments
Adjustments
Note 1

Facilities
Management

Merchandise
Sales

19,791

38,156

7,130

65,078－65,078

1,128

273

1,088

2,490

(2,490)－20,9191,994

38,430
3,555

8,218
20

67,5685,570(2,490)(2,181)65,0783,389

Operating revenues
Sales to externalcustomers
Intersegment sales andtransfers
Total
Segment income

Food andBeverage

Carrying
amount onquarterly
consolidated
statements ofincome Note 2

Total

Notes: 1. Adjustments to the segment income include ¥2,182 million of administration expenses for the parent company’s
administration divisions, etc. at head office which are not allocated to each of the reportable segments.
2. Segment income (loss) is adjusted for operating income described in Quarterly Consolidated Statements of Income.

2. Impairment of fixed assets or goodwill by reportable segments
There is nothing to report.
II. First six months of FY2011 (April 1, 2011 to September 30, 2011)
1. Operating revenues, income or loss by reportable segment(Millions of yen)

Reportable segments
Adjustments
Note 1

Facilities
Management

Merchandise
Sales

21,09034,695

6,801

62,587－62,587

1,010

258

856

2,124

(2,124)－

22,101
348

34,953
2,005

7,658
(516)

64,712
1,837(2,124)(2,074)62,587(237)

Operating revenues
Sales to externalcustomers
Intersegment sales andtransfers
Total
Segment income (loss)

Food andBeverage

Carrying
amount onquarterly
consolidated
statements ofincome Note 2

Total

Notes: 1. Adjustments to the segment income (loss) include ¥2,075 million of administration expenses for the parent company’s
administration divisions, etc. at head office which are not allocated to each of the reportable segments.
2. Segment income (loss) is adjusted for operating loss described in Quarterly Consolidated Statements of Income.

2. Impairment of fixed assets or goodwill by reportable segments
There is nothing to report.
(5) Notes to a Significant Change in Shareholders’ Equity
There is nothing to report.

10