Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2019 (FY2018) [J-GAAP](Consolidated)
August 9, 2018
This document has been translated from the Japanese original, for reference purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.

Company name:
Code number:
Representative:
Contact:

Japan Airport Terminal Co., Ltd.
Listed stock exchange: Tokyo, 1st Section
9706
URL: http://www.tokyo-airport-bldg.co.jp/
Nobuaki Yokota, President and COO
Kazuhito Tanaka, Managing Director
TEL 03-5757-8409
Scheduled date of filing securities report:
August 14, 2018
Scheduled date of commencing dividend payment:－
Supplementary materials on financial results (yes/no)
No
Holding of quarterly earnings announcement (yes/no)
No(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the First Three Months of FY2018 (April 1, 2018 to June 30, 2018)(1) Consolidated Business Results (Cumulative)
Operating revenues(%: Change from the same period of the previous year)

Operating income

Net income attributable toowners of the parent

Ordinary income

First Three
Months ofMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

FY2018FY2017

68,12251,759

31.6
5.9

6,398
2,787

129.6
61.6

6,114
3,758

62.7
39.5

24,884
2,640

842.5
45.3

(Note) Comprehensive income: First three months of FY2018 ¥26,782 million (722.1%)

First Three
Months of

Net income per
share
Yen

Diluted net income
per shareYen

306.3532.50

292.6831.01

FY2018FY2017First three months of FY2017 ¥3,257 million (52.3%)(2) Consolidated Financial Position
Total assets

As of June 30, 2018
As of March 31, 2018
(Reference) Equity capital:

Equity capital tototal assets

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

442,170
239,389

193,294
136,15635.6
55.7

1,937.74
1,641.82

As of June 30, 2018 ¥157,399 million

As of March 31, 2018 ¥133,362 million

2. Dividends
Dividends per share
Q1-EndFY2017FY2018FY2019 (Forecast)

Q2-EndQ3-EndYear-End

Annual

Yen

Yen

Yen

Yen

Yen

-

20.00

-

24.00

44.00

21.00

-

21.00

42.00

(Note) Revisions to the most recently announced dividends forecast for FY2018: None

3. Forecast of Consolidated Financial Results for FY 2018 (April 1, 2018 to March 31, 2019)(%: Change from the same period of the previous year)

First-halfFull-year

Net income attributable Net income
to owners of the parent per share

Operating revenues

Operating income

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

131,200
266,000

21.4
17.7

11,00020,500

63.0
52.6

9,900
18,100

13.2
8.4

27,00031,300

335.9
165.8

332.39385.33(Note) Revisions to the most recently announced forecast of consolidated financial results for FY2018: None

* Notes(1) Significant changes in subsidiaries during the period under review (changes in specified subsidiaries involving changes in scope of
consolidation): Yes
New: 1 company (Tokyo International Air Terminal Corp.)
Excluded: None
(Note) For details, please refer to page 10 of the appendix materials “2. Quarterly Consolidated Financial Statements and Notes(3) Notes on Quarterly Consolidated Financial Statements: Significant Changes in Subsidiaries during the Period under
Review”.
(2) Adoption of special accounting methods for preparation of quarterly consolidated financial statements: Yes(Note) For details, please refer to page 10 of the appendix materials “2. Quarterly Consolidated Financial Statements and Notes(3) Notes on Quarterly Consolidated Financial Statements: Adoption of Special Accounting Methods for Preparation of
Quarterly Consolidated Financial Statements”.
(3) Changes in accounting policies, accounting estimates, and restatement of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement of revisions: None
(4) Number of shares outstanding (common stock)1) Number of shares outstanding at the period-end (including treasury stock):
As of June 30, 2018
84,476,500 shares
As of March 31, 2018
2) Number of treasury stock at the period-end:
As of June 30, 2018
3,247,775 shares
As of March 31, 2018
3) Average number of shares outstanding (quarterly consolidated cumulative period):First quarter of FY2018
81,228,749 sharesFirst quarter of FY2017

84,476,500 shares
3,247,735 shares
81,228,895 shares* This quarterly financial report is not subject to the quarterly review by certified public accountants or auditing
firms.
* Statements regarding the proper use of financial forecast and other special remarks
Notes on the use of forward-looking statements
The forecast of the business results reported herein was prepared based on information the Company had in its possession as of thetime this report was prepared and on certain assumptions judged to be reasonable. The Company makes no guarantee that thesefigures will be achieved. Actual results may differ significantly from forecasts due to various factors. For the assumptions used infinancial forecast and precautionary statements regarding the use of the forecasts, please refer to page 4 of the appendix materials “1.
Qualitative Information on Consolidated Financial Results for the First Three Months of FY2018 (3) Explanation of Consolidated
Financial Forecasts and Other Forward-looking Statements”.

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2018)

Contents of the Appendix Materials
1. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST THREE MONTHS OF
FY2018 (APRIL 1, 2018 TO JUNE 30, 2018) ............................................................................................................................................. - 2 (1) EXPLANATION OF OPERATING RESULTS ...................................................................................................................... - 2 (2) EXPLANATION OF FINANCIAL POSITION ...................................................................................................................... - 3 (3) EXPLANATION OF CONSOLIDATED FINANCIAL FORECASTS AND OTHER FORWARD-LOOKING STATEMENTS .................... - 4 2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ............................................................................. - 5 (1) QUARTERLY CONSOLIDATED BALANCE SHEETS ........................................................................................................... - 5 (2) QUARTERLY CONSOLIDATED STATEMENTS OF INCOME AND QUARTERLY CONSOLIDATED STATEMENTS OF COMPREHENSIVEINCOME .................................................................................................................................................................. - 7 Quarterly Consolidated Statements of Income ................................................................................................................ - 7 Quarterly Consolidated Statements of Comprehensive Income .......................................................................................... - 9 (3) NOTES ON QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS .............................................................................. - 10 (NOTES ON THE PREMISE OF A GOING CONCERN) ........................................................................................................... - 10 (NOTES ON A SIGNIFICANT CHANGE IN SHAREHOLDERS’ EQUITY) ................................................................................... - 10 (SIGNIFICANT CHANGES IN SUBSIDIARIES DURING THE PERIOD UNDER REVIEW)............................................................ - 10 (ADOPTION OF SPECIAL ACCOUNTING METHODS FOR PREPARATION OF QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS)- 10 (ADDITIONAL INFORMATION) ......................................................................................................................................... - 10 (SEGMENT INFORMATION) ............................................................................................................................................. - 11 --1-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2018)

1. Qualitative Information on Consolidated Financial Results for the First Three Months of FY2018(April 1, 2018 to June 30, 2018)(1) Explanation of Operating Results
During the first three months of the fiscal year ending March 31, 2019, the Japanese economy has
experienced a gradual recovery. Looking ahead, continuing improvement in employment and income,coupled with various government policies, is expected to support moderate economic recovery, though it isimportant to prudently monitor the uncertainty in overseas economies and volatility of capital markets.
Looking at our business environment, the Japanese government targets 40 million annual inboundtourists for Japan in 2020. The volume of inbound tourists in 2018 is progressing steadily, reaching a record
high for the first half (January–June) at 15.89 million due to growth in total seat capacity fueled by newroutes and an increase in flights, as well as continuing promotional campaigns for traveling to Japan.
A review of passenger traffic during the first quarter shows that passenger volume at Haneda Airports,
both on domestic and international flights, rose year-on-year since airline companies increased theirnighttime flights at Haneda’s international routes and offered various demand-based discount pricing.
International flights at Narita International Airport, and at other airports, are also progressing well.
Under these circumstances, JAT Group has embraced its long-term vision “To be a World Best Airport”
that satisfies the needs of all stakeholders. To achieve this long-term vision, the medium-term business plan
has been developed and implemented as our five-year growth strategy until FY2020. This medium-termbusiness plan was reviewed to keep up with the current corporate growth strategy and updated to reflect
recent developments, including consolidation of Tokyo International Air Terminal Corp. (“TIAT”) by
subscribing for a third-party allotment of shares in April 2018, as well as the strengthening of airport
functions to meet the increasing demand of international flights after 2020. Our main priority for FY2018 isto realize the intended effects and purpose of consolidation of TIAT, achieve appropriate results, respond tochanges in the business environment, and further improve the performance of airport-style in-city duty-free
shops. While pursuing these priorities, we are implementing various measures based on three strategic pillars:
1) Pursuit of the ideal of Haneda Airport, 2) Expansion of our business domain utilizing our strengths and thediversification of profits, and 3) Reconstruction of our profit base and the building of competitive
advantages.
With regard to “Pursuit of the ideal of Haneda Airport”, passenger terminal facilities are being
constructed with a view toward re-expansion of Haneda international flights. As part of this project, in May
2018, the boarding station near the North Pier of Terminal 2 began operating and the satellite facility at theNorth Pier of Terminal 2 will commence operation in December 2018. Other re-expansion projects areproceeding in line with the construction schedule that will be completed for service by March 2020.
Furthermore, in a drastically changing business environment, we believe that it is important not only toutilize our experience and know-how more extensively, but also to expand our business domain by bringing
in expertise that our company does not possess, so that we can achieve more stable growth by taking fulladvantage of the prominent location of Haneda Airport. To this end, we have moved forward withpreparations for setting up Haneda Future Research Institute Inc., which was incorporated on July 2, 2018.
This business will be undertaken in consideration of the perspective that art and culture will play a vital rolein supporting the Japanese economy after the 2020 Olympics. While we will contribute to regional
revitalization by taking advantage of the premier location of Haneda Airport in connecting local
municipalities and Haneda Airport, we will also create new values by promoting Japanese fine products, art,and culture. Furthermore, we will propose a future design of Japan, such as new lifestyle, while educating
human resources who can meet the needs of the times and fulfilling the role as a think tank.
In terms of the “Expansion of our business domain utilizing our strengths and the diversification of
profits”, a duty-free shop in the arrival area at Haneda’s international terminal was opened in April 2018,
which has shown strong results by capturing potential shopping demand. At airport-style in-city duty-free
shops “Japan Duty Free Ginza”, due to sales promotion efforts such as the expansion of duty-free retail spaceand brands popular among Chinese travelers who are the main customers, actual results have surpassed
projections.
With respect to the “Reconstruction of our profit base and the building of competitive advantages”, two
shops of “Air BIC CAMERA” that offer electronics and other goods were opened at Chubu Centrair
International Airport in April and June 2018, respectively, which have shown strong results by meeting theneeds of targeted foreign travelers. “THE HANEDA HOUSE”, business mall project which targets businesspeople, is now being prepared for opening in December 2018.
Consolidated financial results for the cumulative fiscal first quarter (April 1, 2018 - June 30, 2018) is
affected by the changes in profit structure caused by consolidating the results of TIAT as a consolidated
subsidiary and recognition of extraordinary income and loss. Under these circumstances, consolidated
operating revenues for the cumulative fiscal first quarter increased 31.6% compared with the same period of
the previous year to ¥68,122 million. Operating income rose to ¥6,398 million (up 129.6% year-on-year),-2-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2018)

ordinary income to ¥6,114 million (up 62.7% year-on-year) and net income (attributable to owners of theparent) to ¥24,884 million (up 842.5% year-on-year).
In the Skytrax (UK) World Airport Awards in March 2018, Haneda Airport’s passenger terminals wereawarded third place in the World’s Best Airports category, which comprehensively evaluates various aspects
of international airports. We were also awarded first place in the World's Cleanest Airports (the fifth time, forthe third year in a row) and World's Best Domestic Airports (for the sixth consecutive year). We will work
cooperatively with TIAT as an entire airport to further improve the service level at Haneda Airport.
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]
Since TIAT became a consolidated subsidiary, revenue at Haneda’s international terminal was added
including rental revenue, facility user charges, parking revenue, and sales from advertisement and at lounges,
while revenue from outsourced operation at international terminal decreased.
Looking at factors other than the consolidation of TIAT, rental revenue rose from the same period of theprevious year primarily due to an increase in rental spaces to airlines at domestic terminals.
Revenue from facility user charges rose from the same period of the previous year because a growth indomestic passenger volume increased user charges revenue for domestic terminal facilities.
Other revenues rose from the same period of the previous year primarily because revenue at lounge atdomestic terminals increased.
As a result, operating revenues from facilities management operations increased to ¥20,549 million (up48.9% year-on-year). Operating income for the segment was ¥4,204 million (up 150.3% year-on-year).
[Merchandise Sales]
Since TIAT became a consolidated subsidiary, sales at duty-free shops at Haneda’s international terminal
was added, while the revenue from wholesaling is now offset.
Looking at factors other than the consolidation of TIAT, sales at domestic terminal stores rose from thesame period of the previous year as a result of an increase in domestic passenger volume and efforts to achieve
higher average purchase price.
Sales at international terminal stores increased from the same period of the previous year, becauseinternational passenger volume grew at Haneda Airport, a new duty-free shop was opened at arrival floor, newshops were opened at Chubu Centrair International Airport, both the customer number and average pricecontinue to increase at duty-free shops at airports as a result of efforts to offer the mix of merchandise to meetcustomer interests and to bring more operational efficiency, and the various measures were taken at
airport-style in-city duty-free shops.
Other revenues rose because the wholesaling of products to regional airports progressed well.
As a result, operating revenues from merchandise sales operations increased to ¥43,678 million (up 28.6%
year-on-year) and operating income rose to ¥4,153 million (up 76.9% year-on-year).
[Food and Beverage]
Since TIAT became a consolidated subsidiary, sales from food and beverage operations at Haneda’s
international terminal was added, while revenue from the outsourced operations at international terminal is
now offset.
Looking at factors other than the consolidation of TIAT, sales from food and beverage operations
decreased from the same period of the previous year because some restaurants and stores were closed due torenovations and construction for internationalization at domestic terminal.
Sales from in-flight meals rose from the same period of the previous year due to an increase in flights offoreign carriers, our clients in this business, and acquisition of new clients.
As a result, operating revenues from food and beverage operations increased to ¥5,541 million (up 4.0%
year-on-year). Operating income for the segment was ¥150 million (down 2.6% year-on-year) due to theclosure of some food and beverage stores.
(2) Explanation of Financial Position[Assets]
Current assets increased by ¥43,766 million from the previous fiscal year end to ¥115,752 million,
primarily due to an increase in cash and deposits by ¥42,043 million.
Fixed assets increased by ¥159,013 million from the previous fiscal year end to ¥326,418 million,
primarily due to an increase in buildings and structures by ¥117,129 million.
As a result, total assets increased by ¥202,780 million from the previous fiscal year end to ¥442,170 million.
[Liabilities]-3-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2018)

Current liabilities increased by ¥5,451 million from the previous fiscal year end to ¥43,136 million,
primarily due to an increase in short-terms loans payable by ¥6,040 million.
Fixed liabilities increased by ¥140,191 million from the previous fiscal year end to ¥205,738 million,
primarily due to an increase in long-term loans payable by ¥107,692 million.
As a result, total liabilities increased by ¥145,642 million from the previous fiscal year end to ¥248,875
million.
[Net assets]
Total net assets increased by ¥57,137 million to ¥193,294 million primarily because non-controllinginterests increased by ¥33,100 million and retained earnings increased by ¥22,934 million.
As a result, equity ratio was 35.6% (compared to 55.7% at the previous fiscal year end).
(3) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements
There have been no changes to the interim and full-year consolidated forecasts announced on May 11, 2018.

-4-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2018)

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

ASSETS
Current assets
Cash and deposits
Accounts receivable
Merchandise and finished products
Raw materials and stored goods
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation and impairment
loss
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation and impairment
loss
Machinery, equipment and vehicles (net)Land
Lease assets
Accumulated depreciation and impairment
loss
Lease assets (net)
Construction in progress
Other tangible fixed assets
Accumulated depreciation and impairment
loss
Other tangible fixed assets (net)Total tangible fixed assets
Intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit assets
Other investments
Total investments and other assets
Total fixed assets
TOTAL ASSETS-5-

FY2017(As of March 31, 2018)

First Three Months of
FY2018(As of June 30, 2018)

42,487
19,566
6,512
161
3,294
(37)
71,98584,531
15,603
10,106
156
5,382
(29)
115,752

281,100(204,919)

443,658(250,348)

76,18011,827(8,821)

193,310
21,444(12,270)

3,005
11,371
1,159
(537)

9,174
11,371
1,163
(577)

621
21,49632,101(26,789)586
33,95654,431(44,290)

5,311
117,987
1,889

10,140258,539
41,25831,953
6,665
5,789
298
2,820
47,527
167,404
239,389

16,670
3
5,952
459
3,533
26,619326,418
442,170

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2018)(Millions of yen)

LIABILITIESCurrent liabilities
Accounts payable
Short-term loans payable
Income taxes payable
Allowance for employees’ bonuses
Allowance for directors’ bonuses
Other current liabilities
Total current liabilities
Fixed liabilities
Bonds
Bonds with stock acquisition rights
Long-term loans payable
Lease obligations
Allowance for directors’ 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 (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-6-

FY2017(As of March 31, 2018)

First Three Months of
FY2018(As of June 30, 2018)

9,707
7,790
3,202
1,673
250
15,061
37,685

9,227
13,8302,521
816
56
16,684
43,13630,07028,210
504
3,304
471
2,986
65,547103,233

11,23030,064
135,902
468
45
3,294
473
24,259205,738
248,875

17,48921,337
92,826(3,245)
128,408

17,48921,337
115,761(3,245)
151,342

6,276

6,097

(1,259)
54
(116)
4,954
2,793
136,156
239,389

(21)
52
(71)
6,057
35,894
193,294442,170

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2018)(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income(Millions of yen)

Operating revenues
Rent revenue
Facility user charges revenue
Other revenues
Sale of merchandise
Sale of food and beverage
Total operating revenues
Cost of sales
Cost of sales of merchandise
Cost of sales of food and beverage
Total cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and wages
Provision for employees’ bonuses
Provision for directors’ bonuses
Expenses for retirement benefits
Rent expenses
Outsourcing and commission
Depreciation expenses
Other costs and expenses
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of fixed assets
Miscellaneous expenses
Total non-operating expenses
Ordinary income-7-First Three Months of
FY2017(from April 1, 2017
to June 30, 2017)

First Three Months of
FY2018(from April 1, 2018
to June 30, 2018)

3,295
4,453
6,251
33,616
4,142
51,7594,333
10,551
4,954
43,378
4,904
68,12225,443
2,646
28,09023,66930,716
2,709
33,426
34,696

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

2,643
771
56
239
4,372
6,919
5,940
7,352
28,297
6,398

156
223
572
135
1,088

6
222
64
224
517

81
25
11
118
3,758

744
5
51
801
6,114

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2018)(Millions of yen)First Three Months of
FY2017(from April 1, 2017
to June 30, 2017)
Extraordinary gains
Gain on offsetting assets and liabilities
Gain on negative goodwill
Other extraordinary gains
Total extraordinary gains
Extraordinary loss
Loss on retirement of fixed assets
Loss on valuation of other investments
Loss of step acquisition
Total extraordinary loss
Quarterly income before income taxes and non-controllinginterests
Income taxes – current
Quarterly income
Quarterly net income attributable to non-controllinginterests
Quarterly net income attributable to owners of the parent-8-First Three Months of
FY2018(from April 1, 2018
to June 30, 2018)-

5,626
20,126207
25,960

4
4
8

0
2,725
2,726

3,749

29,348

1,079
2,669

3,651
25,697

29

813

2,640

24,884

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2018)

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)

Quarterly income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests-9-

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

First Three Months of
FY2018(from April 1, 2018
to June 30, 2018)25,697

499
(0)
61

(181)
(42)
(1)
46

27

1,264

588
3,257

1,085
26,782

3,218

25,98639795

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2018)(3) Notes on Quarterly Consolidated Financial Statements(Notes on the Premise of a Going Concern)
Not applicable(Notes on a Significant Change in Shareholders’ Equity)
Not applicable(Significant Changes in Subsidiaries during the Period under Review)
During the first quarter, TIAT became our consolidated subsidiary since the Company completed payment
procedures with regard to subscribing for a third-party allotment of shares issued by TIAT. This acquisitionchanged TIAT’s status for our consolidated accounting from an associate accounted for using the equity method toa consolidated subsidiary, which is included in the scope of consolidation. TIAT falls under the category of
specified subsidiary.
(Adoption of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements)
Calculation of tax expenses
The effective tax rate on income before taxes for the consolidated fiscal year including the first quarter after theapplication of tax effect accounting is reasonably estimated, and that estimated rate is applied to net income forthe quarterly period to calculate estimated tax expenses.
(Additional Information)
Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”“Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board ofJapan (ASBJ) Statement No. 28 issued on February 16, 2018) has been applied from the first quarter of thecurrent fiscal year. Accordingly, deferred tax assets has been presented under investments and other assets anddeferred tax liabilities under fixed liabilities.

- 10 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the First Quarter of the Fiscal Year Ending March 31, 2018 (FY2018)(Segment Information)
Segment Information
I.

First three months of FY2017 (from April 1, 2017 to June 30, 2017)
1. Sales and income (loss) by reportable segment(Millions of yen)

Reportable segments

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

Food andBeverage

Quarterly
consolidated
financialstatements Note 2

Facilities
Management

Merchandise
Sales

13,28333,756

4,719

51,759-51,759

517

196

609

1,322

(1,322)-13,8001,679

33,952
2,348

5,329
154

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

Total

Note 1

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

2. Information on impairment loss on fixed assets and goodwill, etc., by reportable segment
Not applicable
II. First three months of FY2018 (from April 1, 2018 to June 30, 2018)
1. Sales and income (loss) by reportable segment(Millions of yen)

Reportable segments

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

Food andBeverage

Quarterly
consolidated
financialstatements Note 2

Facilities
Management

Merchandise
Sales

19,77043,447

4,904

68,122-

68,122

779

230

636

1,646

(1,646)-

20,5494,204

43,678
4,153

5,541
150

69,7698,508(1,646)(2,109)68,122
6,398

Total

Note 1

1. Adjustments to the segment income include ¥2,116 million of administration expenses for administration divisions at parent company’shead office and some of the subsidiaries which are not allocated to each of the reportable segments.
2. Segment income is adjusted with operating income recorded in the Quarterly Consolidated Statements of Income.
3. During the first quarter, with the acquisition of TIAT’s shares, TIAT became included in the scope of consolidation. Accordingly, amountof assets in each reportable segment increased by ¥174,897 million for “Facilities Management”, ¥8,100 million for “Merchandise Sales”
and ¥1,036 million for “Food and Beverage”.

2. Information on impairment loss on fixed assets and goodwill, etc., by reportable segment
Gain on negative goodwill (¥20,126 million) was recognized from the inclusion of TIAT in the scope of
consolidation as a result of share acquisitions of TIAT during the first quarter. This gain is not allocated toeach reportable segment.

- 11 -