June 4, 2020

Financial Report for the Year Ended March 31, 2020 (FY2019) [J-GAAP] (Consolidated)
This document has been translated from the Japanese original, for reference purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.

Company name: Japan Airport Terminal Co., Ltd. (“the Company”)
Listed stock exchange: Tokyo, 1st Section
Code number: 9706
URL: https://www.tokyo-airport-bldg.co.jp/company/en/
Representative: Nobuaki Yokota, President and COO
Contact: Kazuhito Tanaka, Managing Director
TEL 03-5757-8409
Scheduled date of annual general meeting of shareholders: June 25, 2020
Scheduled date of filing securities report: June 25, 2020
Scheduled date of commencing dividend payment: June 26, 2020
Supplementary materials on financial results (yes/no): Yes
Holding of earnings announcement (yes/no): Yes (for institutional investors and financial analysts)(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Year Ended March 31, 2020 (April 1, 2019 to March 31, 2020)(1) Consolidated Business Results(%: Change from the previous period)
Net income attributable toOperating revenues
Operating income
Ordinary income
owners of the parent

%
-8.7
21.1

Millions of yen

FY2019FY2018249,756
273,618

%
-56.0
67.4

Millions of yen

9,892
22,481(Note) Comprehensive income: FY2019 ¥4,119 million (-88.8%)

8,705
20,379Millions of yen

5,012
33,004

%
-84.8
180.3

FY2018 ¥36,748 million (167.1%)

Net income per
share
Yen

Diluted net income
per share
Yen

61.71
406.3160.20
388.03

FY2019FY2018

%
-57.3
22.1

Millions of yen%

Ordinary income tototal assets%

Operating income tooperating revenues
%

3.1
22.2

1.7
5.6

4.0
8.2

Return on equity(Reference) Equity in earnings of affiliates: FY2019 ¥462 million

FY2018 ¥297 million(2) Consolidated Financial Position
Total assets

Equity capital tototal assets

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

521,363484,654201,899
201,39031.2
33.7

2,001.83
2,011.61

As of March 31, 2020
As of March 31, 2019

(Reference) Equity capital: As of March 31, 2020 ¥162,605 million

As of March 31, 2019 ¥163,399 million(3) Consolidated Cash Flows
Cash flows from operating
activities

Cash flows from investing
activities

Cash flows from financing
activities

Cash and cash equivalents
at the year-end

Millions of yen

Millions of yen

Millions of yen

Millions of yen

20,222
34,288(57,334)(8,489)21,644
19,152

71,79587,273

FY2019FY2018
2. Dividends

Total
dividends(annual)Dividends per share

FY2018FY2019FY2020(Forecast)

AnnualDividend
payout ratio(consolidated)

Dividends on
net assets(consolidated)

Q1-EndQ2-EndQ3-EndYear-end

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

-

23.00
22.00

-

22.00
10.00

45.00
32.00

3,655
2,599

31.2
51.9

2.5
1.6

-

-

-

-

-

-

(Note) We have decided to postpone the announcement of the outlook for dividend payment for the fiscal year ending March 31, 2021

3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)
With respect to the earnings forecast for the fiscal year ending March 31, 2021, since it is difficult to determine the impact of the newcorona virus infection on an appropriate and reasonable basis, we have decided to postpone the announcement of our earnings forecast.
We will announce our consolidated earnings forecast in the future as soon as when conditions are such that it becomes possible todisclose a reasonable estimate. For details, please refer to page 7 (Appendix) of Financial Report for the Year Ended March 31, 2020

(FY2019) “1. Analysis of Business and Financial Results (4) Forecast for FY2020 (the Fiscal year ending March 31, 2021)”.
Other Information(1) Significant changes in subsidiaries during the year under review (changes in specified subsidiaries involving changes in scope of
consolidation): No
New: None
Excluded: None
(2) Changes in accounting policies, accounting estimates, and restatement of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement of revisions: None
(3) Number of shares outstanding (common stock)1) Number of shares outstanding at the year-end (including treasury stock):
As of March 31, 2020
84,476,500 shares
As of March 31, 20192) Number of treasury stock at the year-end:
As of March 31, 2020
3,248,324 shares
As of March 31, 20193) Average number of shares outstanding during the period:
Year ended March 31, 2020
81,228,396 sharesYear ended March 31, 2019
(Reference) Summary of Non-Consolidated Financial Results
Financial Results for the Year Ended March 31, 2020 (April 1, 2019 to March 31, 2020)(1) Non-Consolidated Business Results
Operating revenues
Millions of yen

FY2019FY2018174,269
188,121

Operating income

%
-7.4
6.8

Millions of yen

3,247,973 shares
81,228,641 shares(%: Change from the previous period)

Ordinary income

%
-93.2
-11.9

Millions of yen

1,250
7,517

Yen

Diluted net income per share
Yen

9.34
67.23

9.04
64.03

Net income per share

FY2019FY2018471
6,880

84,476,500 shares

Net income

%
-83.4
-14.3

Millions of yen

759
5,460

%
-86.1
-12.4

(2) Non-Consolidated Financial Position
Total assets

As of March 31, 2020
As of March 31, 2019
(Reference) Equity capital:

Net assets

Equity capital tototal assets

Net assets per share

Millions of yen

Millions of yen%

Yen

282,426
246,452

100,830
105,38435.7
42.8

1,241.32
1,297.38

As of March 31, 2020

¥100,830 million

As of March 31, 2019 ¥105,384 million* This financial report is not subject to audits 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
With respect to the earnings forecast for the fiscal year ending March 31, 2021, since it is difficult to determine the impact of the newcorona virus infection on an appropriate and reasonable basis, we have decided to postpone the announcement of our earnings
forecast. For details, please refer to page 7 of the appendix materials “1. Analysis of Business and Financial Results (4) Forecast for
FY 2020 (the fiscal year ending March 31, 2021).
Supplementary materials on financial results and details of presentation at earnings announcement
Earnings announcement is planned to be held on June 10, 2020 for financial analysts. Video of the presentation as well as
presentation materials used in the earnings announcement will be promptly posted on the Company’s website following the meeting.

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)

Contents of the Appendix Materials
1.

ANALYSIS OF BUSINESS AND FINANCIAL RESULTS ..................................................................................... - 2 -(1) ANALYSIS OF CONSOLIDATED BUSINESS RESULTS FOR FY 2019 .................................................................................. - 2 (2) ANALYSIS OF CONSOLIDATED FINANCIAL POSITION FOR FY2019 ................................................................................ - 5 (3) ANALYSIS OF CONSOLIDATED CASH FLOWS FOR FY 2019............................................................................................ - 5 (4) FORECAST FOR FY 2019 (THE FISCAL YEAR ENDING MARCH 31, 2020) ........................................................................ - 7 (5) BASIC POLICY ON DISTRIBUTION OF PROFITS AND DIVIDEND PAYMENT FOR FY2019/FY2020 ....................................... - 7 2.

BASIC APPROACH ON SELECTION OF ACCOUNTING STANDARDS ............................................................. - 7 -3.

CONSOLIDATED FINANCIAL STATEMENTS AND MAIN NOTES ................................................................... - 8 (1) CONSOLIDATED BALANCE SHEETS .............................................................................................................................. - 8 (2) CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ............... - 10 Consolidated Statements of Income ............................................................................................................................. - 10 Consolidated Statements of Comprehensive Income ...................................................................................................... - 12 (3) CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY .................................................................... - 13 (4) CONSOLIDATED STATEMENTS OF CASH FLOWS.......................................................................................................... - 15 (5) NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS .......................................................................................... - 17 (Notes on the Premise of a Going Concern) .................................................................................................................. - 17 (Basic Important Conditions to Prepare Consolidated Financial Statements) ................................................................... - 17 (Additional Information) ............................................................................................................................................ - 19 (Notes on Consolidated Balance Sheets) ...................................................................................................................... - 20 (Notes on Consolidated Statements of Income) ............................................................................................................. - 21 (Notes on Consolidated Statements of Cash Flows) ....................................................................................................... - 22 (Segment Information) ............................................................................................................................................... - 23 (Per Share Information) ............................................................................................................................................. - 26 (Significant Subsequent Events) .................................................................................................................................. - 26 -4.

OTHERS ......................................................................................................................................................... - 27 --1-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)

1. Analysis of Business and Financial Results(1) Analysis of Consolidated Business Results for FY 2019
During the fiscal year ended March 31, 2020 (FY 2019), the Japanese economy was experiencing gradual
recovery until February 2020, but the impact of the new corona virus infection (COVID-19) since March has
put a significant downward pressure on the economy placing us in a difficult situation. Looking ahead, thesituation is rapidly worsening due to the impact of COVID-19 and the situation is expected to continue to be
extremely difficult.
With respect to our business environment, up to December 2019, the accumulated number of inboundtourists to Japan reached a record high of 31.88 million in 2019 (January through December). However, since
the end of January 2020, due to the outbreak of COVID-19, group tours have been banned and the number offlights originating from China and other countries has been reduced, resulting in a sharp decrease in inboundtourists by approximately 60% in February 2020. In March, as the impact of COVID-19 spread worldwide andmany countries imposed countermeasures such as overseas travel restrictions and curfews, and tighter
quarantines as well as visa cancellations occurred in Japan, the number of visitors to Japan from around theworld fell approximately 90% below the previous year's level. Since April, there has been no sign of an end tothe outbreak of COVID-19, and movement has been suppressed all over the world due to people refraining
from traveling, so the environment remains challenging.
With respect to international flights at Haneda Airport in particular, about half of all flights from China
were cancelled in February 2020. Subsequently all flights from China and South Korea were cancelled in
March. In addition, flights on other routes including those from Europe and the United States, were cancelled
so the number of passengers fell by more than 80% compared to the same month during the previous year.
Although there were no cancellations of domestic flights at Haneda Airport until February, scheduled flight
reductions have been implemented since early March, resulting in a 60% decrease in passenger volume in
March compared to the same month during the previous year. In addition, since February 2020, passenger
volume, especially international passenger volume, has significantly decreased at international hub airportsthat we operate such as Narita Airport.
Amidst all of this, from the end of January to February 2020, the Japan Airport Terminal Group (“JATGroup”) cooperated with relevant ministries and airlines to accept chartered flights dispatched by the Japanese
government to return Japanese nationals from Wuhan, China. We have also taken prompt actions appropriate
for this situation, such as the closure of certain facilities in the airport terminal and shortening of operating
hours, or temporary closure, of our directly managed stores.
Under these circumstances, JAT Group aspires to best satisfy the needs of all stakeholders. To createbusiness and revenue generation opportunities and achieve sustainable growth, we have set our long-term
vision “To be a World Best Airport”. Based on this objective, we have developed a medium-term business plan
(FY2016 – FY2020), involving three strategic pillars: 1) Pursuit of the ideal of Haneda Airport, 2) Expansionof our business domain utilizing our strengths and the diversification of profits, and 3) Reconstruction of our
profit base and the building of competitive advantages. As a practical foundation for implementing suchstrategy, we have been reorganizing our corporate structure and enhancing corporate governance.
As our management priorities for FY 2019, we have worked on preparations for operating Haneda’s
international facilities after their opening, an appropriate response to changes in the consumption trend
involving Chinese travelers to Japan, and the implementation of our profit plan to ensure that we accomplish
our guidelines for FY 2020. In particular, regarding our “preparations for opening Haneda’s international
facilities”, we changed the name of the International Terminal to “Terminal 3” on March 14, 2020 andcommenced operation of international facilities at Terminal 2 on March 29 to coincide with the increased
flight slots of international flights at Haneda Airport permitted by Japan’s Ministry of Land, Infrastructure,
Transport and Tourism (“MLIT”). Furthermore, we have implemented facility improvements, including the
expansion of office space on the north side of Terminal 2 and the expansion of Terminal 3, which werecompleted in October and December 2019 respectively, as well as the promotion of "FAST TRAVEL" astress-free and comfortable boarding procedure that utilizes state-of-the-art technology, enhancement of
universal design, and the installation of multilingual support to ensure seamless transportation.
As part of our commercial efforts, we opened and renovated shops at domestic and international terminals.
In addition, to "respond to changes in consumption trends" we opened 34 stores in the commercial area of theinternational facility at Terminal 2 under the concept of "TOKYO AIR" where visitors can experience theatmosphere of Tokyo and opened "HANEDA VIRTUAL BOUTIQUE", the first virtual boutique in thedomestic duty-free market that fuses real and digital environments.
Other activities include the acquisition of shares of AGP Corporation (“AGP”) in February 2020, turning
AGP into a company accounted for using equity method. We believe that new synergies can be created in the
future through the expansion of our business domain and application to our airport operations, both
domestically and internationally. Furthermore, we entered into a comprehensive business alliance agreementwith JTB Corporation in March with the aim of jointly creating new attractions and exchanges, as well as
businesses that improve the experience of customers originating from Haneda Airport. In addition to providing-2-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)new services at Haneda Airport, we will contribute to the revitalization of the local community by providing
tourist information and promotions at the newly opened Welcome Center in Terminal 2, and by introducing acafé that utilizes local food to showcase the charm of the area.
As part of our ESG related efforts, in consideration of the global environment, we began construction of a
new recycling facility in February 2020 which is planned to commence operation during the fiscal year ending
March 31, 2021 with the aim of achieving more efficient waste disposal as a countermeasure to the future
increase in Haneda Airport’s waste volume. Also, in March we switched to “Bio LIMEX” shopping bags,
which are mainly composed of limestone and plant-derived resin, as a frontrunner among domestic airports.
We plan to introduce these bags at all of our directly managed stores by June. This measure is expected toreduce the annual consumption of petroleum-derived plastics at Haneda Airport by approximately 462 tons
and annual CO2 emissions by approximately 1,000 tons. In addition, as a social contribution activity forhuman resource development, we supported the “Japan Public-Private Partnership Student Study Abroad
Program (TOBITATE! Young Ambassador Program),” a public-private partnership project.
Lastly, the decision to postpone the Tokyo Olympic and Paralympic Games was made in March 2020, but
this decision is expected to have only a minor impact on our business performance. As the sky gateway to theTokyo metropolitan area, we will continue preparations to ensure the smooth hosting of the games.
As a result of the above, with respect to consolidated financial results for FY 2019 (April 1, 2019 – March
31, 2020), operating revenues were ¥249,756 million (down 8.7% year-on-year), operating income was ¥9,892
million (down 56.0%), ordinary income was ¥8,705 million (down 57.3%), and without the extraordinary income
due to the consolidation of Tokyo International Air Terminal Corp. (TIAT) as a consolidated subsidiaryrecognized last fiscal year, net income attributable to owners of the parent was ¥5,012 million (down 84.8%).
With respect to operating revenue, although there was an increase in rent revenue in Facilities
Management, revenue decreased in Merchandise Sales and Food and Beverage as a result of a decrease in thenumber of domestic and international passengers due to the impact of COVID-19. As for operating income, adecrease in revenue and the recognition of a one-time cost due to the opening of the international facility at
Terminal 2 resulted in a decline in profits, despite implementing a variety of cost-reduction measures toachieve our profit plan amidst the global pandemic, including shortened opening hours and temporary closuresof directly managed stores, a reduction in the number of free shuttle buses operating at airports, and the
postponement of renovation work at existing facilities.
(Millions of yen)

Operating Results

FY2018(from April 1, 2018 toMarch 31, 2019)

Operating revenues[Facilities Management][Merchandise Sales][Food and Beverage]
Operating income
Ordinary income
Quarterly net income attributable toowners of the parent

FY2019(from April 1, 2019 toMarch 31, 2020)

Year-on-Year(%)

273,618
82,050171,472
20,09522,481
20,379249,756
82,942
147,893
18,920
9,892
8,705

-8.7
1.1
-13.8
-5.8
-56.0
-57.3

33,004

5,012

-84.8

In the Skytrax (UK) “Global Airport Rating” published in November 2019, Haneda Airport’s passenger
terminals were awarded the world’s highest standard “5-star Airport” for the sixth consecutive year.
Moreover, in May 2020, we were awarded second place globally in the World’s Best Airports, which
comprehensively evaluates various aspects of international airports in 2020. Furthermore, we were awarded firstplace in the World's Cleanest Airports (for the fifth year in a row), World's Best Domestic Airports (for theeighth consecutive year), and World's Best PRM / Accessible Facilities (for the second consecutive year). JATGroup will continue to work cooperatively as an entire airport so that both domestic and internationalterminals offer a high level of customer convenience, comfort, and functionality. In pursuit of the ideal of
Haneda Airport, we aim to be the airport that earns the long-term trust of customers from all over the world.
The following is a breakdown of earnings by segment. Note that the figures for operating income are
equivalent to those for segment income.

-3-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)

Overview by Segment[Facilities Management](Millions of yen)

Operating Results

FY2018(from April 1, 2018 toMarch 31, 2019)

Facilities Management
Rent revenue
Facility user charges revenue
Other revenues
Intersegment sales and transfers
Total of Operating Revenues
Segment income

82,05017,45443,50521,0905,533
87,584
14,339FY2019(from April 1, 2019 toMarch 31, 2020)

Year-on-Year(%)

82,942
18,25941,01923,662
5,697
88,640
6,932

1.1
4.6
-5.7
12.2
3.0
1.2
-51.7

Rent revenue rose from the previous year due to the opening of “THE HANEDA HOUSE” in theprevious fiscal year and an increase in rental spaces to airline companies including floor expansion of officespace on the north side of Terminal 2 in October 2019.
Revenue from facility user charges decreased from the previous year since the user charge decreased dueto the decline in volume of domestic and international passengers by the impact of COVID-19.
Other revenues rose from the previous year primarily because of revenue increase in contracting
construction work and security and other outsourced operations with respect to the construction work of theinternational facilities at Terminal 2.
As a result, operating revenues from facilities management operations increased to ¥88,640 million (up1.2% year-on-year). Operating income for the segment decreased to ¥6,932 million (down 51.7%
year-on-year). The decrease in income was due to an increase in depreciation expense and operating expense
related to the boarding stations and the satellite facility in Terminal 2 that commenced operation last fiscal year,
the expansion of P4 parking, and the expansion part of the international terminal that commenced operation in
December 2019, an increase in maintenance expenses upon the completion of renovation work of Terminal 1
in September 2019 and the floor expansion of office space on the north side of Terminal 2 in October 2019,and one-time costs including real estate acquisition tax when international facility at Terminal 2 commenced
operation in March 2020.
[Merchandise Sales](Millions of yen)

Operating Results

FY2018(from April 1, 2018 toMarch 31, 2019)

Merchandise Sales
Sales at domestic terminal stores
Sales at international terminal
storesOther revenues
Intersegment sales and transfers
Total of Operating Revenues
Segment income

FY2019(from April 1, 2019 toMarch 31, 2020)

Year-on-Year(%)

171,472
36,212

147,893
33,148-13.8-8.5

98,51584,420-14.3

36,745
1,523
172,996
15,76030,323
1,378
149,272
10,823

-17.5
-9.5
-13.7
-31.3

Sales at domestic terminal stores fell from the previous year because of the closure of stores such as
Isetan Haneda Store (men’s) in Terminal 2 due to construction work of the international facility at Terminal 2
and decrease in passenger volume by the impact of COVID-19.
Sales at international terminal stores at Haneda Airport slightly exceeded the same period of the previous
year until December 2019 due to the renewal effect of TIAT DUTY FREE SHOP CENTRAL amid thedeclining consumption trend of the visitors from China. Since February 2020, the impact of COVID-19,
especially the decline in the number of Chinese passengers due to flight cancellations in China was significant,sales were lower than in the previous year. At Narita Airport and Japan Duty Free GINZA, an airport-style
duty-free shop, due to the impact of temporary closures in the first half of the year for store renovations, adecline in Chinese consumption, and a decline in passenger volume by the impact of COVID-19 that began in
February 2020, the sales were significantly lower than the previous year.
With respect to other revenues, the wholesaling business and outsourced store operations at Narita Airport
decreased and wholesale business at regional airports decreased resulting from fewer inbound tourists from-4-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)

Korea since July 2019. In addition, due to cancellation of international flights by the spread of COVID-19 that
resulted in lower sales in the wholesaling business, other revenues fell significantly below the same period of
the previous year.
As a result, operating revenues from merchandise sales operations decreased to ¥149,272 million (down
13.7% year-on-year). Operating income decreased to ¥10,823 million (down 31.3% year-on-year) due to theincrease in one-time costs for the renovation of duty free shops in Narita Airport and airport-style in-city
duty-free shop, and newly opened stores including duty free shops in Haneda Airport Terminal 2 in addition to
the effect of the decline in revenue.
[Food and Beverage](Millions of yen)

Operating Results

FY2018(from April 1, 2018 toMarch 31, 2019)

Food and Beverage
Sales from food and beverage
storesSales from in-flight meals
Other revenues
Intersegment sales and transfers
Total of Operating Revenues
Segment income

FY2019(from April 1, 2019 toMarch 31, 2020)

Year-on-Year(%)

20,09518,920-5.8

12,514

11,514

-8.0

6,764
816
2,518
22,613
880

6,543
863
2,641
21,561
451

-3.3
5.8
4.9
-4.7
-48.7

Sales from food and beverage operations decreased from the previous year due to the shortened operating
hours and temporary closure of food and beverage shops in light of the decrease in passenger volume by the
impact of COVID-19 in addition to the closures of shops because of the construction work for the international
facility at Terminal 2.
Sales from in-flight meals decreased from the previous year due to decline in passenger volume since
February 2020, although sales rose up to December 2019 compared to the same period during the previous
year due to an increase in the passenger numbers of foreign carriers, our clients in this business.
As a result, operating revenues from food and beverage operations decreased to ¥21,561 million (down
4.7% year-on-year). Operating income for the segment decreased to ¥451 million (down 48.7% year-on-year)
due to the significant impact of the decline in sales despite cost-saving efforts in procurement and other costs.
(2) Analysis of Consolidated Financial Position for FY 2019
[Assets]
Regarding current assets, cash and deposits decreased primarily due to payment for construction work.
Regarding fixed assets, buildings and structures increased resulting from the completion of facilities including
the international facility at Terminal 2, expansion of Terminal 3 and floor expansion of office space on thenorth side of Terminal 2 which are part of the investment to internationalize Haneda Airport, despite theprogress of depreciation of buildings and structures. In addition, activities such as the acquisition of share of
AGP, together resulted in an increase in total assets by ¥36,708 million from the previous fiscal year end to¥521,363 million.
[Liabilities]
Liabilities increased due to additional borrowings of long-term loans payable combined with issuance of
unsecured straight bonds despite redemption of bonds with stock acquisition rights and repayment oflong-term loans payable. As a result, total liabilities increased by ¥36,199 million from the previous fiscal year
end to ¥319,464 million.
[Net assets]
Net income for the year increased retained earnings and non-controlling interests despite the decrease due
to dividend payment and valuation difference on available-for-sale securities.
This has increased total net assets by ¥509 million from the previous fiscal year end to ¥201,899 million.
As a result, equity ratio was 31.2% (compared to 33.7% at the previous fiscal year end).
(3) Analysis of Consolidated Cash Flows for FY 2019
Cash and cash equivalents (hereinafter referred to as “cash”) at the current fiscal year end decreased by¥15,477 million compared to the previous fiscal year end to ¥71,795 million.
The following is a summary of cash flows and the factors behind these flows for the current fiscal year.
-5-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)[Cash flows from operating activities]
Net cash provided by operating activities decreased by ¥14,066 million (down 41.0%) from the previous
fiscal year to ¥20,222 million. This was primarily due to a decrease in income before income taxes and minority
interests.
[Cash flows from investing activities]
Net cash used in investing activities increased by ¥48,844 million (up 575.4%) from the previous fiscal year
to ¥57,334 million. This was primarily due to a decrease in proceeds from purchase of investments in subsidiary
resulting in change in scope of consolidation.
[Cash flows from financing activities]
Net cash provided by financing activities increased by ¥2,491 million (up 13.0%) from the previous fiscal
year to ¥21,644 million. This was primarily because of the proceeds from issuance of bonds.

-6-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)(4) Forecast for FY 2020 (the fiscal year ending March 31, 2021)
Due to the impact of COVID-19, the airline industry is facing a significant decline in demand for air
travel due to travel restrictions around the world and the request for voluntary refrain from domestic travel.
After Japan’s declaration of a state of emergency on April 7, more than 90% of international flights and
70% of domestic passenger flights have been cancelled at Haneda Airport, resulting in a significant decrease inpassenger volume. To ensure the health and safety of airport users and employees, as well as to prevent thefurther spread of infection, we have temporarily closed or shortened hours of operation for some of our storesand facilities in the airport terminal. In addition, we offered rent reduction and exemption to our tenants
including airlines, retail shops and restaurants. This has had a significant impact on our Group’s performance,
including continued declines in rent revenue, facility user charge revenue, parking revenue, paid lounge sales,
merchandise sales, and food and beverage sales.
As countermeasures, JAT Group has implemented cost-cutting efforts such as reducing operating andmanagement costs by limiting the operating areas at airport terminals and other facilities and partially reducing
executive compensation. From a financial perspective, we secured a short-term borrowing facility of ¥20.0
billion from several banks in April 2020, in addition to an existing commitment line of ¥9.0 billion, in order toavoid the risk of insufficient funds due to our revenue decline. We will continue to consider further measures tosecure sufficient funding to counteract the prolonged impact of a decline in revenue.
With respect to the earnings forecast, although Japan’s state of emergency has been lifted, since it isdifficult to determine the outlook of the recovery in demand for both domestic and international flights, wehave decided to postpone the announcement of our earnings forecast for the fiscal year ending March 31, 2021.
We will announce our earnings forecast in the future when conditions are such that it becomes possible toprovide a reasonable estimate.
The impact of COVID-19 is expected to significantly change the course of society as a whole including
more people working outside of their offices, and the outlook of the airline industry remains uncertain.
However, in the medium- to long-term, we expect a further increase in demand for air travel, and we willcontinue to work towards increasing the value of Haneda Airport by further improving the convenience,
functionality, and comfort of the terminal buildings as the sky gateway to the Tokyo metropolitan area.
(5) Basic Policy on Distribution of Profits and Dividend Payment for FY2019/FY2020
Due to the nature of the Company’s business to operate the Haneda Airport terminal, large-scale
investments take place once every several years, so we believe it is necessary to secure sufficient retained
earnings that take into account such large-scale investments including facility renewal work. At the same time,
we consider the return of profits to our shareholders to be one of our most important management priorities.
Our basic policy is to maintain stable dividend payment and proactively return profits in accordance with ourbusiness performance, with a dividend ratio of 30% or more as the target indicator in our medium-termbusiness plan. Although the impact of COVID-19 has a significant impact on our performance, we believe that
it is a temporary factor and we have no plans to change our basic policy regarding return of profits to ourshareholders.
Our performance up to third quarter of the fiscal year ended March 31, 2020 was generally in line with
our earnings forecast, but net income for FY2019 fell approximately 40% below the forecast due to asignificant decrease of profit during the fourth quarter by the impact of COVID-19. Taking this outcome into
account, we have decided to pay a year-end dividend of ¥10 per share for the fiscal year ended March 31, 2020.
This matter will be submitted to the 76th Ordinary General Meeting of Shareholders to be held on June 25,
2020. As a result, the annual dividend for the fiscal year ended March 31, 2020, together with the interim
dividend of ¥22 per share, will be ¥32 per share, bringing the dividend ratio to 51.9%.
With respect to our planned dividend payment for the fiscal year ending March 31, 2021, we have decided
to postpone the announcement. We will announce our planned dividend payment in the future when conditions
are such that it becomes possible to announce a reasonable earnings forecast.

2.

Basic Approach on Selection of Accounting Standards
To secure comparability between companies and between fiscal years, the Group prepares its consolidated
financial statements in accordance with the Ordinance on Terminology, Forms and Preparation Methods ofConsolidated Financial Statements (Finance Ministry Ordinance No. 28 of 1976), excluding Chapter 7 andChapter 8.
The Group will appropriately consider the possibility of adoption of international accounting standards
taking into consideration of conditions in Japan and overseas.

-7-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)

3. Consolidated Financial Statements and Main Notes(1) 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
Leasehold right
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit assets
Other investments
Total investments and other assets
Total fixed assets
TOTAL ASSETS-8-

FY2018(As of March 31, 2019)

FY2019(As of March 31, 2020)

87,458
17,95910,968
141
7,306
(16)
123,817

71,958
8,924
13,440146
19,797(18)
114,248

459,499(261,619)
197,879
23,945(13,457)
10,488
11,371
1,261
(695)
565
58,98859,926(46,826)
13,099292,393552,854(277,692)
275,162
37,743(15,266)
22,476
12,881
3,622
(965)
2,657
6,258
67,111(50,994)
16,116
335,551

37,0502,586
39,63735,205
3,614
38,82016,835
6,981
1,385
3,604
28,806360,837
484,654

20,082
8,748
387
3,523
32,742
407,114521,363

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)(Millions of yen)

LIABILITIESCurrent liabilities
Accounts payable
Short-term loans payable
Current portion of bonds with stock acquisitionrights
Accrued expenses
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
Deferred tax liabilities
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 or 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-9-

FY2018(As of March 31, 2019)

FY2019(As of March 31, 2020)

9,774
12,724

3,261
13,64615,013－

13,547
4,482
1,725
269
10,35567,894

8,736
1,517
1,635
186
35,34364,327

11,127
15,031
161,345409
14,204
57
4,059
478
8,656
215,370
283,264

50,98515,020161,011
2,402
13,357
55
4,141
486
7,675
255,136
319,464

17,48921,337122,012(3,246)
157,592

17,48921,337
123,451(3,248)159,029

5,506

3,637

197
47
55
5,807
37,990201,390484,654

609
37
(708)
3,575
39,294
201,899
521,363

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)

FY2018(from April 1, 2018
to March 31, 2019)
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 gains of affiliates
Contributions in aid of construction
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of fixed assets
Fee and commission expenses
Miscellaneous expenses
Total non-operating expenses
Ordinary income- 10 -FY2019(from April 1, 2019
to March 31, 2020)

17,45443,50521,314
171,249
20,095
273,618

18,25941,01923,801
147,563
19,111
249,756

121,195
10,934132,129
141,489

104,288
10,336
114,625
135,130

12,072
1,620
269
955
16,97430,333
24,63432,147
119,00722,481

12,816
1,628
186
904
16,297
27,57627,80738,021
125,238
9,892

26
330
297
41
1,078
1,775

25
364
462
353
1,281
2,488

3,102
82
584
107
3,877
20,379

2,901
240
459
74
3,675
8,705

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)(Millions of yen)

FY2018(from April 1, 2018
to March 31, 2019)
Extraordinary gains
Gains on sales of fixed assets
Gain on offsetting assets and liabilities
Gain on negative goodwill
Government subsidy
Other extraordinary gains
Total extraordinary gains
Extraordinary loss
Impairment loss
Loss on retirement of fixed assets
Loss of step acquisition
Loss on reduction entry of fixed assets
Other extraordinary loss
Total extraordinary loss
Income before income taxes and non-controlling interests
Income taxes – current
Income taxes for prior periods
Income taxes – deferred
Total income taxes
Net income before non-controlling interests
Net income attributable to non-controlling interests
Net income attributable to owners of the parent- 11 -FY2019(from April 1, 2019
to March 31, 2020)－
5,626
20,126207－
25,960

271
－
－
99
5
376

117
315
2,725
－
152
3,311
43,027
7,742
－
(381)
7,360
35,666
2,662
33,004

－
429
－
44
－
473
8,609
3,966
494
(1,840)
2,620
5,988
975
5,012

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income before non-controlling interests
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- 12 -FY2018(from April 1, 2018
to March 31, 2019)35,666FY2019(from April 1, 2019
to March 31, 2020)
5,988

(772)
386
(6)
238

(1,893)
808
(10)
(738)

1,235

(35)

1,081
36,748(1,869)4,11933,856

2,781

2,891

1,338

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)(3) Consolidated Statements of Changes in Shareholders’ Equity
FY2018 (from April 1, 2018 to March 31, 2019)(Millions of yen)
Shareholders’ equity

Balance at the beginning of current period

Common stock

Capital surplus

17,48921,337Retainedearnings

Treasury stock

92,826(3,245)

Total
shareholders’equity128,408

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)(3,817)(3,817)33,00433,004(1)(1)

Total changes during current period－－

29,185(1)

29,184

Balance at the end of current period

17,48921,337122,012(3,246)

157,592

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Deferred gains
or losses onhedges

6,276(1,259)Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income
54
(116)
4,954

(769)

1,457

(6)

171

852

Total changes during current period

(769)

1,457

(6)

171

852

Balance at the end of current period

5,506

197

47

55

5,807

Balance at the beginning of current period

Foreigncurrencytranslation
adjustment

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

Balance at the beginning of current period

Non-controllinginterests
2,793

Total net assets
136,156

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)(3,817)33,004(1)
35,19636,048

Total changes during current period

35,196

65,233

Balance at the end of current period

37,990201,390- 13 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)

FY2019 (from April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholders’ equity

Balance at the beginning of current period

Common stock

Capital surplus

17,48921,337Retainedearnings

Treasury stock

122,012(3,246)

Total
shareholders’equity157,592

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)(3,574)(3,574)

5,012

5,012
(1)

(1)

Total changes during current period

－

－

1,438

(1)

1,436

Balance at the end of current period

17,48921,337

123,451(3,248)159,029

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Deferred gains
or losses onhedges

5,506

197

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income47
55
5,807(1,869)

412

(10)

(764)

(2,231)

Total changes during current period(1,869)

412

(10)

(764)

(2,231)

Balance at the end of current period

3,637

609

37

(708)

3,575

Balance at the beginning of current period

Foreigncurrencytranslation
adjustment

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

Balance at the beginning of current period

Non-controllinginterests
37,990Total net assets
201,390

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)(3,574)
5,012
(1)
1,303

(927)

Total changes during current period

1,303

509

Balance at the end of current period

39,294

201,899- 14 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)(4) Consolidated Statements of Cash Flows(Millions of yen)

FY2018(from April 1, 2018
to March 31, 2019)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Gain on negative goodwill
Gain on offsetting assets and liabilities
Loss (gain) on step acquisition
Increase (decrease) in allowance for employees’ bonuses
Increase (decrease) in allowance for directors’ bonuses
Increase (decrease) in net defined benefit liabilities
Decrease (increase) in net defined benefit assets
Interest and dividends income
Interest expenses
Equity in losses (earnings) of affiliates
Loss on retirement of tangible fixed assets
Loss (gain) on sales of tangible fixed assets
Government subsidy
Decrease (increase) in accounts receivable – trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in accounts payable - trade
Increase (decrease) in other current liabilities
Increase (decrease) in other fixed liabilities
OthersSubtotalInterest and dividends received
Interest paid
Income and other taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Purchase of investment securities
Proceeds from purchase of investments in subsidiary
resulting in change in scope of consolidation
Purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchase of intangible fixed assets
Purchase of long-term prepaid expenses
Payments of long-term loans receivable
Proceeds from government subsidy
Other payments
Other proceeds
OthersNet cash provided by (used in) investing activities- 15 -FY2019(from April 1, 2019
to March 31, 2020)

43,027
24,737
117(20,126)(5,626)
2,725
51
19
113
(101)
(357)
3,102
(297)
395
(6)
(207)
(503)
(1,085)(2,378)
68
2,681
(56)
(260)
46,034350(3,439)(8,657)34,288

8,609
27,901
－
－
－
－
(89)
(82)
83
(63)
(390)
2,901
(462)
668
(271)
(99)
9,035
(2,477)(12,080)(6,513)
3,394
181
253
30,497387(3,283)(7,378)20,222

(27)
(792)

－
(5,536)

46,211－(53,459)
8
(565)
(6)
(2)
207
(162)
96
4
(8,489)(49,895)
193(1,781)
(1)
－
99
(482)
67
2
(57,334)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)(Millions of yen)

FY2018(from April 1, 2018
to March 31, 2019)
Cash flows from financing activities
Net increase (decrease) of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of corporate bond
Redemption of convertible bond
Repayments of lease obligations
Dividends paid by parent company
Dividends paid to non-controlling shareholders
OthersNet cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period- 16 -FY2019(from April 1, 2019
to March 31, 2020)

300
40,110(17,224)－－(180)(3,817)(33)(1)
19,152－
11,850(11,060)
39,789(15,000)(324)(3,574)(34)(1)
21,644(8)(9)

44,94342,32987,273(15,477)
87,273
71,795

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)(5) Notes on the Consolidated Financial Statements(Notes on the Premise of a Going Concern)
There is nothing to report.
(Basic Important Conditions to Prepare Consolidated Financial Statements)
1. Scope of consolidation
1) Number of consolidated subsidiaries: 20 companies
Names of consolidated subsidiaries
Tokyo International Air Terminal Corp.
Tokyo Airport Restaurant Co., Ltd.
Japan Duty Free Fa-So-La Isetan Mitsukoshi Co., Ltd
Cosmo Enterprise Co., Ltd.
International Trade Inc.
Japan Airport Logitem Co., Ltd.
BIG WING Co., Ltd.
Japan Airport Techno Co., Ltd.
Air BIC Inc.
Haneda Airport Enterprise Co., Ltd.
Haneda Airport Security Co., Ltd.
Haneda Passenger Service Co., Ltd.
Japan Airport Ground Handling Co., Ltd.
Haneda Future Research Institute Inc.
Japan Airport Terminal Trading (Chengdu) Co., Ltd.
LANI KE AKUA PACIFIC, INC.
Sakura Co., Ltd.
Hamashin Co., Ltd.
CTT Co., Ltd.
Kaikan Development Co., Ltd.
2) Number of Non-consolidated subsidiaries: 2 companies
Names of Non-consolidated subsidiaries
Tsukizi Hamashin Co., Ltd.
Felix International LLC.
The two non-consolidated subsidiaries are excluded from the scope of consolidation since they are small insize, and their total assets, operating revenues, net income/loss, and retained earnings do not have a significant
impact on the consolidated financial statements.
2. Application of equity method
1) Number of affiliated company that is accounted for using the equity method: 3 companies
Names of affiliated company that is accounted for using the equity method
Airport Transport Service Co., Ltd.
Japan Airport Delica Inc.
AGP Corporation
During the current fiscal year, the Company acquired shares of AGP Corporation which is now included in thescope of application of equity method.
2) The non-consolidated subsidiaries and Seikousha Inc. and eight other affiliated companies are not included in thescope of the application of equity method, since the aggregate amounts corresponding to the shares held by theCompany of those companies’ net income/loss and retained earnings do not have a significant impact on thoseof consolidated financial statements.
3. Fiscal year of consolidated subsidiaries
Of consolidated subsidiaries, Japan Airport Terminal Trading (Chengdu) Co., Ltd. and LANI KE AKUAPACIFIC, INC. end the fiscal year on December 31. Necessary adjustments arising from important transactions
during the period between its closing date and the consolidated closing date are made.

- 17 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)

4. Summary of significant accounting policies
1) Valuation standards and methods for important assets(A) Securities(i) Held-to-maturity securities are carried at cost.
(ii) Other securities
Other securities with fair values are stated at fair value based on the market value at the year-end, withvaluation differences included in net assets. Cost of securities sold is determined by the moving averagemethod.
Other securities without fair values are stated at cost based on moving average method.
(B) Derivatives
Derivative financial instruments are stated at fair value.
(C) Inventories
At the Company and major consolidated subsidiaries, inventories are principally stated at cost determined by
the retail method (book value of inventories in the balance sheet is written-down when their profitability
declines). Certain consolidated subsidiaries use last-purchase-price method (book value of inventories in thebalance sheet is written-down when their profitability declines).
2) Depreciation method of important depreciable assets(A) Tangible fixed assets (excluding lease assets)
The Company uses the declining balance method. Consolidated subsidiaries principally use the straight-line
method.
(B) Intangible fixed assets (excluding lease assets)
Amortization of intangible fixed assets is calculated by the straight-line method. Software intended for internal
use is amortized by the straight-line method over its estimated useful life of 5 years.
(C) Lease assets
The straight-line method is adopted in which the lease term is treated as useful life and the asset is depreciatedto zero or residual value.
3) Accounting policies for important allowances(A) Allowance for doubtful accounts
To prepare for losses from doubtful accounts, estimated uncollectible amounts are recorded, which arecomputed either by using historical default rate for normal receivables or by considering individualcollectibility for particular receivables such as highly doubtful accounts.
(B) Allowance for employees’ bonuses
To prepare for the payment of bonuses to employees, the estimated amount is recorded as allowance.
(C) Allowance for directors’ bonuses
To prepare for the payment of bonuses to directors, the estimated amount is recorded as allowance.
(D) Allowance for directors’ retirement benefits
To provide for future payments of retirement benefits to directors, certain consolidated subsidiaries record theamount that would be required at the end of the fiscal period in accordance with their internal rules.
4) Accounting method for employees' retirement benefits(A) Allocation method of projected retirement benefits to each period
The benefit formula method is used to allocate the projected retirement benefits to each period up to the end of
the fiscal year.
(B) Amortization of actuarial gains and losses and prior service costs
Prior service costs are amortized under the straight-line method over a certain number of years within the
average remaining service years (5-10 years). Actuarial gains and losses are amortized, beginning in the year
following their occurrence, under the straight-line method over a certain number of years within the averageremaining service years (5-10 years).
(C) Adoption of simplified methods at small companies
Certain consolidated subsidiaries adopt a simplified method of using the amounts payable for voluntary
retirement of employees at fiscal year-end in calculating net defined benefit liabilities and expenses for- 18 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)

retirement benefits.
5) Recognition of significant revenues and costs
Standards for recognition of revenues and costs of construction contracts(i) Construction of which the percentage of completion by the end of the fiscal year can be reliably estimated
The percentage-of-completion method is used to recognize revenues and costs. Percentage of completion is
calculated based on cost proportion method.
(ii) Other constructions
The completed-contract method is used to recognize revenues and costs.
6) Accounting standards for important hedging transactions(A) Hedge accounting method
Hedging transactions are accounted for under deferred hedge accounting method. Interest rate swaps that meetcertain conditions are accounted for using special treatment.
(B) Hedging instrument and hedged item
Hedging instrument ----------- Interest rate swap
Hedged item -------------------- Floating rate borrowings(C) Hedging policy
Hedging transactions are executed to avoid the risk of interest rate fluctuation, and our basic policy is that they
are not used for speculation purposes.
(D) Evaluation of hedging effectivenessThe effectiveness of hedging is evaluated by comparing the cumulative changes of hedging instruments andcorresponding changes in underlying hedged items. The evaluation is omitted regarding interest rate swaps
that meet the requirements for special treatment.
7) Scope of “Cash and cash equivalents” in consolidated statements of cash flows“Cash and cash equivalents” in the consolidated statements of cash flows consist of cash on hand, deposits
with banks that are withdrawable on demand, and short-term investments which are easily convertible to cashwith insignificant risk of fluctuation in values whose maturity will come within three months.
8) Capitalization of borrowing costs
At certain consolidated subsidiaries, interest costs and related expenses on borrowings during construction
period of passenger terminals and other facilities are included in acquisition cost (¥217 million for FY 2019,¥4,517 million for accumulated amount as of March 31, 2020) and recorded as tangible asset.
9) Other important matters regarding preparing consolidated financial statements
Consumption Taxes
Consumption taxes are excluded from transaction amounts.

(Additional Information)
Accounting estimates with respect to the impact of the spread of COVID-19
To judge the recoverability of deferred tax assets, the Company is developing and evaluating scenarios based on
the information from external sources available at the time of preparation of the consolidated financial statements.
Certain assumptions have been made that the recovery in number of passengers which affect earnings and otherfactors will take about two years for domestic flights and four years for international flights. Accounting
estimates based on such assumptions have been reflected to the accounting treatments.

- 19 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)(Notes on Consolidated Balance Sheets)
1. Assets pledged as collateral and corresponding liabilities with collateral
The following are assets pledged as collateral.
(Millions of yen)

FY2018(As of March 31, 2019)
54,37947
184,937
1,576
53
1,000
241,994

Cash and deposits
Accounts receivable
Buildings and structures
Machinery, equipment and vehicles
Land
Investment Securities (Note)
Other investments
Total

FY2019(As of March 31, 2020)
45,99735
256,065
11,276
53
3,661
1,000
318,089(Note) Pledged as collateral for borrowings by affiliated companies

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

FY2018(As of March 31, 2019)
1,700
98,277
99,977

Short-term loans payable
Long-term loans payable
Total

FY2019(As of March 31, 2020)
850
94,057
94,907

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

FY2018(As of March 31, 2019)
1,942

Investment securities (shares)

FY2019(As of March 31, 2020)
7,023

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

FY2018(As of March 31, 2019)Japan Airport Delica Inc.
548 million yen
225

FY2019(As of March 31, 2020)
Japan Airport Delica Inc.
225
548 million yen(2) Commitment to guarantee(Millions of yen)

FY2018(As of March 31, 2019)
Haneda Future Tokutei Mokuteki
Kaisha-

FY2019(As of March 31, 2020)
Haneda Future Tokutei Mokuteki
666
Kaisha548 million yen

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

Buildings and structures

FY2018(As of March 31, 2019)88- 20 -FY2019(As of March 31, 2020)
132

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)(Notes on Consolidated Statements of Income)
1. Gains on sale of fixed assets(Millions of yen)Land
Buildings
Total

FY2018(from April 1, 2018 toMarch 31, 2019)-

FY2019(from April 1, 2019 toMarch 31, 2020)
142
128
271

2. Impairment loss
The JAT Group recognized impairment loss on the assets as follows:
FY2018 (from April 1, 2018 to March 31, 2019)
Location
Use
Ota-ku, Tokyo
Incinerator

TypeConstruction in progress

Impairment loss
117 million yen

The JAT Group classifies assets into groups primarily according to business locations.
By examining impairment for fixed assets based on the groupings, since the plan to construct incinerator wascancelled by the consolidated subsidiary, the carrying amount was reduced to the recoverable value and the reduced
amount was recognized as impairment loss of ¥117 million in extraordinary loss. Recoverable value was measured
as zero based on its value in use.
FY2019 (from April 1, 2019 to March 31, 2020)
There is nothing to report.
3. Loss on retirement of fixed assets(Millions of yen)

FY2018(from April 1, 2018
to March 31, 2019)
273
0
41
315

Buildings and structures
Machinery, equipment and vehicles
Furniture and fixtures
SoftwareTotal- 21 -FY2019(from April 1, 2019
to March 31, 2020)
423
4
0
429

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)(Notes on Consolidated Statements of Cash Flows)
Relationship between the closing balance of cash and cash equivalents and the value of items listed on the consolidatedbalance sheets(Millions of yen)

FY2018(from April 1, 2018
to March 31, 2019)87,458(185)
87,273

Cash and deposits
Time deposits with a maturity greater than 3 months
Cash and cash equivalents

FY2019(from April 1, 2019
to March 31, 2020)
71,958(162)
71,795

Breakdown of assets and liabilities of the company that newly became a subsidiary through acquisition of shares
FY2018 (from April 1, 2018 to March 31, 2019)
Breakdown of assets and liabilities of TIAT at the start of consolidation which is newly consolidated after
acquisition of shares, and the relationship between the purchase price of share of TIAT and proceeds (net) from thepurchase of investment of TIAT are shown as below.
(Millions of yen)

Current assets
Fixed assets
Current liabilities
Fixed liabilities
Non-controlling interests
Gain on negative goodwill
Amount of investment received through third party allotment of shares
Subtotal
Consolidated book value up to the time of acquisition of control
Loss of step acquisition
Purchase price of additional shares
Cash and cash equivalents
Balance: Proceeds from purchase of investment- 22 -

54,374
180,137(17,261)(159,785)(32,338)(20,126)
8,530
13,530(9,705)2,725
6,550(52,761)
46,211

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)(Segment Information)
Segment Information
1. Overview of reportable segments
The reportable segments of the Group are units for which separate financial information is available and whose
operating results are regularly reviewed by the Board of Directors in order to decide how to allocate management
resources and evaluate their performances.
The Company is primarily engaged in the management of passenger terminal buildings and the provision ofservices to users at Haneda Airport. Business divisions at the Company’s headquarters develop comprehensive
business strategies and pursue business activities.
The Company is, therefore, composed of business segments with different services based on the businessdivisions. Its three reportable segments are the facilities management operations, merchandise sales operations, andfood and beverage operations.
The segment of facilities management operations leases, maintains and repairs, and operates passenger terminal
facilities at Haneda Airport. It also provides services for passengers. The segment of merchandise sales operations is
engaged in retail sales of products to passengers and others, wholesales of products to companies operating airport
terminals and others, and other activities incidental to these two sales operations. The segment of food and beverage
operations provides food and beverage services to parties including users of Haneda Airport and Narita International
Airport. It is also engaged in the production and sales of in-flight meals and other incidental activities.
2. Method of calculations of sales, income (loss), assets, liabilities, and other items by reportable segments
Accounting methods for reportable business segments are, in general, the same as those described in “Basic
Important Conditions to Prepare the Consolidated Financial Statements.”
Segment income is based on operating income. Intersegment sales and transfers are based on prevailing market
price.
3. Sales, income (loss), assets, liabilities, and other items by reportable segments
FY2018 (from April 1, 2018 to March 31, 2019)(Millions of yen)

Reportable segments

Consolidated
financialstatements(Notes 2)

Facilities
Management

Merchandise
Sales

82,050171,472

20,095

273,618－

273,618

5,533

1,523

2,518

9,574

(9,574)－87,584
14,339331,815

172,996
15,76083,01022,613880
17,634

283,193
30,979432,461(9,574)(8,497)88,902

273,618
22,481
521,363

Depreciation andamortization

21,974

1,609

558

24,142594

24,737

Increase in tangible fixed
assets and intangible fixed
assets54,4672,944

231

57,643479

58,123Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income
Segment assets
Other items

Food andBeverage

Adjustments(Notes 1)

Total(Notes) 1. Details of adjustments are as follows:(1) Adjustments to the segment income include ¥8,506 million of administration expenses for the parent company’s
administration and other divisions at head office and certain subsidiaries which are not allocated to each of the reportablesegments.
(2) Adjustments to the segment assets include ¥134,993 million of corporate assets which are not allocated to each of thereportable segments, which includes excess funds managed by the parent company, long-term investment (investment
securities), assets related to administration divisions, special purpose funds of certain subsidiaries and other assets.
(3) Adjustments to depreciation and amortization include ¥599 million of depreciation with respect to parent company’s
administration divisions and other divisions at head office and certain subsidiaries which are not allocated to each of thereportable segments.
(4) Adjustments to increase in tangible fixed assets and intangible fixed assets (¥479 million) are primarily due to acquisitionof a company dormitory for employees of parent company’s head office.

- 23 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)

2. Segment income is adjusted with operating income recorded in the Consolidated Statements of Income.

FY2019 (from April 1, 2019 to March 31, 2020)(Millions of yen)

Reportable segments

Consolidated
financialstatements(Notes 2)

Facilities
Management

Merchandise
Sales

82,942

147,893

18,920249,756－

249,756

5,697

1,378

2,641

9,717

(9,717)－88,6406,932
360,509149,272
10,82353,734

21,561451
17,634259,473
18,207
431,879(9,717)(8,315)89,484

249,756
9,892
521,363

Depreciation andamortization

24,4452,335

577

27,357543

27,901

Increase in tangible fixed
assets and intangible fixed
assets55,358

11,941

1,089

68,3892,392

70,782

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

Food andBeverage

Adjustments(Notes 1)

Total(Notes) 1. Details of adjustments are as follows:(1) Adjustments to the segment income include ¥8,321 million of administration expenses for the parent company’s
administration and other divisions at head office and certain subsidiaries which are not allocated to each of the reportablesegments.
(2) Adjustments to the segment assets include ¥144,458 million of corporate assets which are not allocated to each of thereportable segments, which includes excess funds managed by the parent company, long-term investment (investment
securities), assets related to administration divisions, special-purpose funds of certain subsidiaries and other assets.
(3) Adjustments to depreciation and amortization include ¥549 million of depreciation with respect to the parent company’s
administration and other divisions at head office and certain subsidiaries which are not allocated to each of the reportablesegments.
(4) Adjustments to increase in tangible fixed assets and intangible fixed assets (¥2,392 million) are primarily due toacquisition of a company dormitory for employees of parent company’s head office.
2. Segment income is adjusted with operating income recorded in the Consolidated Statements of Income.

Related Information
FY2018 (from April 1, 2018 to March 31, 2019)
1. Information by product and service
Sales to external customers by product and service is equivalent to the amount described in segment
information, thus the information is omitted.
2. Information by area
(1) Operating revenues
Operating revenues in Japan account for more than 90% of the operating revenues recorded in theConsolidated Statements of Income, thus the information is omitted.
(2) Tangible fixed assets
Tangible fixed assets in Japan account for more than 90% of the tangible fixed assets recorded in theConsolidated Balance Sheet, thus the information is omitted.
3. Information by major customer
Not applicable
FY2019 (from April 1, 2019 to March 31, 2020)
1. Information by product and service
Sales to external customers by product and service is equivalent to the amount described in segment
information, thus the information is omitted.
- 24 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)

2. Information by area
(1) Operating revenues
Operating revenues in Japan account for more than 90% of the operating revenues recorded in theConsolidated Statements of Income, thus the information is omitted.
(2) Tangible fixed assets
Tangible fixed assets in Japan account for more than 90% of the tangible fixed assets recorded in theConsolidated Balance Sheet, thus the information is omitted.
3. Information by major customer
Not applicable
Information on impairment loss of fixed assets by reportable segment
FY2018 (from April 1, 2018 to March 31, 2019)(Millions of yen)

Impairment Loss

Facilities
Management
117

Merchandise
Sales－

Corporation /Elimination

Food andBeverage
－

－

Total
117

FY2019 (from April 1, 2019 to March 31, 2020)
Not applicable
Information on amortized amount and unamortized balance of goodwill by reportable segment
FY2018 (from April 1, 2018 to March 31, 2019)
Not applicable
FY2019 (from April 1, 2019 to March 31, 2020)
Not applicable
Information on gain on negative goodwill by reportable segment
FY2018 (from April 1, 2018 to March 31, 2019)
The Company completed the acquisition of shares in TIAT, which changed TIAT’s status for our consolidated
accounting to a consolidated subsidiary. Though ¥20,126 million was recorded as gain on negative goodwill asa result of the acquisition, the amount is not allocated to reportable segment.
FY2019 (from April 1, 2019 to March 31, 2020)
Not applicable- 25 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)(Per Share Information)(Yen)

FY2018(from April 1, 2018
to March 31, 2019)
2,011.61
406.31388.03

Net assets per share
Net income per share
Diluted net income per share

FY2019(from April 1, 2019
to March 31, 2020)
2,001.83
61.71
60.20

Notes: Net income per share and diluted net income per share are calculated based on the following:(Millions of yen, except for number of shares)

FY2018(from April 1, 2018
to March 31, 2019)
Net income per share
Net income attributable to owners of the parent
Amount not attributable to common shareholders
Net income attributable to owners of the parent
available for distribution to common shareholders
Average number of shares outstanding during theperiod (thousand shares)
Diluted net income per share
Adjustments to net income attributable to owners of
the parent[Interest income] net-of-tax
Increase in common shares (thousand shares)[Bonds with stock acquisition rights (thousand
shares)]Description of potential shares which were notincluded in computing diluted net income per shareas they have no dilutive effect.
(Significant Subsequent Events)
Not applicable- 26 -FY2019(from April 1, 2019
to March 31, 2020)

33,004－

5,012－

33,004

5,012

81,22881,228

-17

-7

[-17]
3,780

[-7]
1,914

[3,780][1,914]－－

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2020 (FY2019)4.

Others

Production, orders received and sales
As for production and other results, the JAT Group finds it difficult to present production and orders received foreach segment.
Therefore, regarding the status of production, orders received, and sales, please see “1. Analysis of Business andFinancial Results” in relation to the financial results for each segment.
Operating revenues the current fiscal year were as follows:(Millions of Yen)FY2018(from April 1, 2018
to March 31, 2019)82,05017,45443,50521,090171,472
36,212
98,51536,74520,095
12,5146,764
816
273,618

Facilities Management
Rent revenue
Facility user charges revenue
Other revenues
Merchandise Sales
Sales at domestic terminal shops
Sales at international terminal shops
Other sales
Food and Beverage
Sales from food and beverage operations
Sales from in-flight meals
Other sales
Total

FY2019(from April 1, 2019
to March 31, 2020)
82,942
18,25941,01923,662
147,893
33,14884,42030,32318,92011,514
6,543
863
249,756

Notes
1)

The amounts above do not include consumption taxes.

2)

Data on leasing regarding rental revenue in Facilities Management is summarized as follows:(㎡)

FY2018(from April 1, 2018
to March 31, 2019)874,602274,206
268,740
149,545
63,38155,814

Total floor space owned by the JAT Group
Total leasable floor space
Total leased floor space
Airlines
General tenants
Used by the JAT GroupFY2019(from April 1, 2019
to March 31, 2020)
953,957
308,951
304,359
158,917
63,15282,289For part of the area of Terminal 2 which commenced operation in March 2020, measurement of the area has not been completed yet, so
the figure is an estimate subject to possible change in the future.

- 27 -