April 1, 2015 to March 31, 2016 (FY15)

Earnings Presentation Material(May 18, 2016)* This document has been translated from the Japanese original, for reference purposes only.
If there is any discrepancy between this translated document and the Japanese original, the original shall prevail.

Japan Airport Terminal Co., Ltd.
http://www.tokyo-airport-bldg.co.jp/

Contents
Earnings Presentation Material

1. Review of Consolidated Financial Results for FY15
(1) Business Environment

P2(2) Consolidated Financial Results

P3

2. Consolidated Financial Forecast for FY16

3. New Medium-Term Business Plan“To Be the World's Best Airport by 2020”
3-1. Review the Medium-Term Business Plan (2013-2015)P8

3-2. Review the Medium-Term Business Plan (2013-2015)P9

3-3. Results of Medium-Term Business Plan (Reference)

P10(1) Business EnvironmentP43-4. Aims of the Japan Airport Terminal Group (Long-Term Vision)

P11(2) Consolidated Financial Forecast for FY16P5

3-5. Positioning of New Medium-Term Business Plan

P12(3) Forecast of Operating Revenues by Segment

P6

3-6. Strategic Direction

P13

3-7. Summary of “New Medium-Term Business Plan”
3-8. Roadmap to Realization of Long-Term Vision

P14
P15

3-9. Pursuit of ‘Vision’ for Haneda Airport

P16

3-10. Expansion of Business Domains that Leverage Strengths andEarnings Diversification
P17
3-11. Redevelop Earnings Base and Establish Competitive Position P18
3-12. Realignment and Enhancement of Organization,
Human Capital and GovernanceP19

3-13. Guidelines (Target Indicators)

P20

3-14. Investment Plan (2016-2018)P21

3-15. Profit-Loss Plan (2016-2018)P22

4. Reference (SKYTRAX International Airport Evaluation)

P23

5. Reference (Destination cities of international flights)

P24

Contents
Supplementary Material
1. Details of Consolidated Financial Results for FY15(1) Changes in passenger volume (Haneda, Narita and Kansai)

P27(2) Consolidated financial results for FY15P28(3) Financial results by segmenti) Facilities management

P28ii) Merchandise sales

P29iii) Food and beverage

P30(4) Breakdown of selling, general and administrative expenses

P31(5) Changes in non-operating income/expenses and extraordinary income/loss

P32(6) Consolidated balance sheets

P33(7) Consolidated statements of cash flows

P34[Reference] Purchasing Trends of Non-Japanese Passengers by Nationality

P35

2. Details of Consolidated Financial Forecast for FY16
(1) Consolidated financial forecast for FY16P37(2) Financial forecast by segmenti) Facilities management

P38ii) Merchandise sales

P39iii) Food and beverage

P40

3. Other Information(1) Capital expenditure and depreciation expenses

P41(2) Changes in operating revenues/ordinary income/cash flows

P42

Contents
Reference Material
1. Outline of the Company(1) Changes in passenger volume (Haneda, Narita and Kansai)

P44(2) The Group’s business expansion

P45(3) Group companies (17 companies)

P46(4) Composition of the group businesses (consolidated, by segment / results for FY15) P47(5) Revenue composition (consolidated, by segment)

P48(6) Sales by region and segment (non-consolidated)

P49(7) Facilities of Tokyo International Airport (investment plan)

P50

2. Efforts Related to the Tokyo International Airport Re-expansion
Project(1) Re-expansion project of Tokyo International Airport

P51(2) Founding and present state of the Tokyo International Air Terminal Corporation

P52(3) Overview of the Tokyo international terminal building

P53

3. Changes in Passenger Volume on Domestic and International Flights(Haneda and Narita)
P54

Earnings Presentation Material

April 1, 2015 to March 31, 2016 (FY15)

1. Review of Consolidated Financial Results for FY15
2. Consolidated Financial Forecast for FY16
3. New Medium-Term Business Plan “To Be the World's Best Airport by 2020”
4. Reference1. Review of Consolidated Financial Results for FY15JAPAN AIRPORTTERMINAL(1) Business Environment
Increase in Haneda international flights to and from China,
expansion in inbound travel demand to Japan from Asia
Business
Environment

Number of
Passengers(YoY comparison)

Increase in non-Japanese visitors mainly from East and Southeast Asia
Fewer visa restrictions, expansion of consumption tax exemption system, continued yen devaluation
Increase in Haneda international flights to and from China
Number of passengers for Haneda domestic flights up slightly year on year (0.1%) despite impacts notably fromthe start of Hokuriku Shinkansen high-speed rail line service and operating restrictions at the Hiroshima Airport
Number of passengers for Haneda international flights rose 16.2% year on year, mainly reflecting thecontinuation of a weaker yen and expansion in inbound travel demand to Japan
Number of passengers at Narita rose 6% year on year, mainly from increased flights from low-cost carriers(LCCs) and expansion in inbound travel demand to Japan
Number of passengers for Kansai international flights increased 27.7% year on year, primarily atop growth in
LCC flights mainly to and from Asia

The number of passengers (YoY comparison)
Airport

FY15 1H(% )FY15 2H(% )FY15 (% )No. ofpassengers(10 thousands)

Revised forecast(10 thousands)

Rate ofchange (% )Haneda – Domestic

-0.3

0.5

( 0.0)

0.1

6,270

6,247

0.4

Haneda – International

8.8

23.5

( 23.3)

16.2

1,342

1,359

-1.2

Total Haneda

1.1

4.1

( 3.7)

2.6

7,612

7,607

0.1

Narita6.0

5.9( 6.1)

6.0

3,105

3,107

-0.1

Kansai28.2

27.2( 16.2)

27.7

1,726

1,649

4.7

* Figures in parentheses are revised forecasts for the second half of the year
Japan Airport Terminal Co., Ltd.

02

1. Review of Consolidated Financial Results for FY15JAPAN AIRPORTTERMINAL(2) Consolidated Financial Results
Addressed growth in non-Japanese visitors,
with record-high operating revenues and profit

Main Factors
BehindChanges○ Differences from previous fiscal year results
Significant increase in merchandise sales and wholesale sales for international flights from launch of measures to capture growthin non-Japanese visitors
Increased revenues from growth in revenues from Haneda international passenger terminal building facilities management andfull-year operation of Royal Park Hotel The Haneda
Increase in food and beverage sales from development of attractive new stores and acquisition of new customers for airline
catering○ Differences from initial forecasts
Lower operating revenues and operating income due to weaker sales from airport-style urban duty-free stores and brandboutiques at Narita and Haneda airports
Increase in investment profit accompanying improved performance at TIAT and other equity-method affiliates

Consolidated financial results for FY15
Items

Note: Figures shown are rounded down to the nearest 100 million yen.

1H
FY15

2H

FY14

Change

FY15

FY

FY14

ChangeFY15

FY14

ChangeRevisedforecast*1

Difference

1,000

823

177

1,040

911

128

2,041

1,735

306

2,094

-52

(Facilities management)( 250)( 240)( 10)( 278)( 250)( 28)( 528)( 490)( 38)( 514)( 14)(Merchandise sales)( 664)( 504)( 160)( 673)( 583)( 89)( 1,337)( 1,087)( 249)( 1,409)( -71)(Food and beverage)

( 85)

( 78)

( 6)

( 90)

( 78)

( 12)

( 175)( 157)( 18)( 171)( 4)

Operating income

65

50

15

47

48

-1

113

98

14

117

-3

Ordinary income

77

61

15

59

56

2

136

118

18

132

4

Net income

52

39

13

35

26

9

88

66

22

89

-0

¥15.0

¥9.0

¥18.0

¥12.0

¥33.0

¥21.0

Capital expenditure

83

48

Depreciation
expenses112

118

E B ITD A

225

217

Operating revenues

Annual dividend*1 Revised financial forecast announced in October 2015

Japan Airport Terminal Co., Ltd.

03

¥30.0

2. Consolidated Financial Forecast for FY16

JAPAN AIRPORTTERMINAL(1) Business Environment
Despite concerns of the impact of China’s economic slowdown,business environment will grow steadily from measures to promote Japan as a
tourist destination and increased Haneda flights to and from the U.S.
Business
Environment

Steady growth in airline number of passengers from measures to promote Japan as a tourist destination andincreased flights to and from the U.S. at Haneda Airport
Continued risk from weaker purchasing demand among visitors from China since the second half of theprevious fiscal year

Number of
Passengers(YoY comparison)

The number of passengers for Haneda domestic flights up 1.0% year on year, from anticipated growth indomestic and international transfer passengers
The number of passengers for Haneda international flights up 14.0% year on year, from anticipated growth inflights to and from the U.S.
The number of passengers at Narita up 4.0% year on year, after incorporating the impact of Haneda
international flights
The number of passengers at Kansai Airport up 9.5% year on year, mainly on anticipated growth in LCC flights

The number of passengers forecast for FY16 (YoY comparison)

Airport

FY16 1H(%)

FY16 2H(% )FY16 (Forecast)(10 thousands)

FY16
(% )

FY15 (Results)(10 thousands)

Haneda – Domestic

1.2

0.7

1.0

6,330

6,270

Haneda – International

17.6

10.7

14.0

1,530

1,342

Total Haneda

3.9

2.6

3.2

7,860

7,612

Narita

3.8

4.2

4.0

3,230

3,105

Kansai

10.2

8.7

9.5

1,890

1,726

Japan Airport Terminal Co., Ltd.

04

2. Consolidated Financial Forecast for FY16

JAPAN AIRPORTTERMINAL(2) Consolidated Financial Forecast for FY16
In addition to capturing growth in non-Japanese visitors to Japan,
conduct of capital investments based on new medium-term plan
Main Factors
BehindChanges

Capture growth in non-Japanese visitors to Japan and increase duty-free wholesales sales for
Haneda international flights
Increase sales from full-year operation of urban duty-free stores (Japan Duty Free GINZA)
Weaker sales mainly among passengers from China at directly managed duty-free stores at
Narita and Kansai airports
Increase in non-operating income from profit growth at TIAT and other equity-method affiliates

Financial forecast for FY16

Items

Note: Figures shown are rounded down to the nearest 100 million yen. (Billions of yen)

FY16 (Forecast)

FY15 (Results)

ChangeRate of change (%)

Operating revenues

221.0

204.1

16.8

8.3

Operating income

12.9

11.3

1.5

14.1

Ordinary income

15.6

13.6

1.9

14.2

Net income

11.1

8.8

2.2

25.1

Capital expenditures

11.2

8.3

Depreciation expenses

11.8

11.2

EBITDA

24.8

22.5

Annual dividend

¥36.0

¥33.0

Japan Airport Terminal Co., Ltd.

05

2. Consolidated Financial Forecast for FY16

JAPAN AIRPORTTERMINAL(3) Forecast of Operating Revenues by Segment
Note: Figures shown are rounded down to the nearest 100 million yen. (Billions of yen)

Rate of change
(%)

Items

FY16 (Forecast)

FY15 (Results)

Facilities management

53.4

52.8

0.5

0.9

Rent revenue

13.0

12.9

0.1

0.7

Facility user charges revenue

18.0

17.8

0.1

0.8

Other revenues

22.4

22.1

0.2

1.2

Merchandise sales

149.4

133.7

15.6

11.7

Sales at domestic terminal stores

34.0

33.4

0.5

1.7

Sales at international terminal stores

46.0

35.1

10.8

30.9

Other sales

69.4

65.1

4.2

6.4

Food and beverage

18.2

17.5

0.6

3.7

Sales from restaurants

9.6

9.5

0.0

0.5

Sales from in-flight meals

6.2

5.6

0.5

9.0

Other sales

2.4

2.3

0.1

4.3

Change*1 Figures inside the parentheses represent the composition ratio within each segment (excluding sales amount within the segment).
*2 Main items of “other income” for each segment
Facilities management:
Income from contract work to manage facility maintenance, income from hotel business, income from advertising and lounges, income
from parking lots, etc.
Merchandise sales:
Income from wholesaling (other companies’ duty-free shops), etc.
Food and beverage:
Income from contract work to run TIAT restaurants, income from catering airport lounges, etc.
Japan Airport Terminal Co., Ltd.

06

3. New Medium-Term Business Plan“To Be the World's Best Airport by 2020”

3-1. Review the Medium-Term Business Plan (2013-2015)
Results

Despite growth in non-Japanese visitors, realized sales growth rate exceeding growth in the number ofpassengers through corporate effort
Achieved numerical targets in fiscal 2014, the plan’s second year

Target indicators

Initial targets

Revised targets(2013.5)(2014.11)

Results of previous medium-term plan

2013

2014

2015

9.8

¥11.3 billion

21.7¥22.5 billion

Consolidated
operatingincome¥8 billion¥9 billion

EBITDA¥20.5
billion¥21.6
billion

19.4

Consolidated
operatingincome ratio

Above
5.2%

4.2%

5.7%

Above 5%

5.5%

Dividends

At least¥13

Nochange

13

21

¥33

Equity ratio

At least
50%

NochangeIssuesJAPAN AIRPORTTERMINAL

6.1

54.1%

50.2%

Achievement status

Achieved

Achieved

Achieved

Achieved

52.1%
Achieved

Decision to hold 2020 Tokyo Olympics and Paralympics, respond to large-scale capital investments
accompanying measures to augment airport functions in the Tokyo metropolitan area
Respond to risk from significant dependency on demand to visit Japan
Respond to advancement of airport management reforms

Japan Airport Terminal Co., Ltd.

08

3-2. Review the Medium-Term Business Plan (2013-2015)
Outline of strategy

JAPAN AIRPORTTERMINAL

Review

Responding to Haneda Internationalization•

Strengthen connections between domestic and internationalterminal businesses•

Expanded international flights and maintained domestic and international flight transfer facilities•

Boost service level as domestic-domestic and domesticinternational hub

•
•
•
•
•

Acquired SKYTRAX5 Star Airport ranking
World’s Best Airports No. 4 (up from No. 6), World’s Best Domestic Airports No. 1
The World’s Cleanest Airports No. 1
The World's Best Cleanest Airports No. 1
Opened First Cabin (simplified accommodation facility) and Royal Park Hotel The Haneda forinternational flights
Reinstalled universal design facilities (PBB step-less conversion, multi-language information signs,
universal toilets, etc.)••

Enhance value of Haneda Airport overall, and maximize
Company’s opportunities for earnings expansion•••

Established exclusive facilities for business jets
Expanded and upgraded international passenger terminal management
Invited in “first in Japan” brand boutique stores

Future Framework for New Airport Management•

Substantive improvements in convenience and greater
returns to airline companies and passengers••

Introduced PSFC (benefits from facility user charges and clarification of expense burden)
Reduced burden to airlines via rent system revision•

Create new airport value and expand non-airline related
earnings

•
•
•
•

•

Acquire knowhow to develop management of new airports•

Opened second men’s store and a ladies’ store for Isetan Haneda Store
Opened an airport-style urban duty-free store Japan Duty Free GINZA
Enacted joint activities (UHHA) with Japan-America Student Conference and TOMODACHI Initiative
Promoted efforts to showcase cutting-edge technology, such as robot business partnership, etc. with
Cyberdyne
Promoted ferry transport commercialization (experimental trials, etc.) aimed at opening new waterway
avenues for tourism and culture
Bid on overseas infrastructural projects; bid on Sendai Airport concessions•

Improvement of Business Earnings Potential•

Implement investments contributing to ongoing value
creation at Haneda Airport•

Improve efficiency through structural revision, decidedirection of unprofitable businesses•

Redevelop earnings base through improvements inorganizational production capacity

•
•
•
•
•
•
•

Conducted/Executed for agile and strategic investment, etc. by CB publication and maintained
financial flexibility
Established new shareholder benefit system for long-term shareholders
Reduced cost ratio through expansion and upgrade of PB merchandise
Improved efficiency and strengthened marketing in airline catering business via capital partnershipwith major airline catering company LSG
Reviewed food and beverage shops in Chengdu, China
Conducted review of store efficiency in line with growth in the number of foreign passengers to Japan
Began investigating options for redevelopment of logistics business

Enhancing Human Resource and Organizational Capabilities•

Redevelop personnel and organization in response tobusiness environment

Japan Airport Terminal Co., Ltd.

••

Simplified organization
Installed structure capable of promoting new business, etc. supporting future management base09

3-3. Results of Medium-Term Business Plan (Reference)

JAPAN AIRPORTTERMINAL

Ａ

Japan Duty Free GINZA

Japan Duty Free GINZA(Exterior)Japan-America Student Conference

Japan Airport Terminal Co., Ltd.

Robot business partnership with Cyberdyne

10

Multipurpose restroom(Powder room)3-4. Aims of the Japan Airport Terminal Group (Long-Term Vision)JAPAN AIRPORTTERMINAL“To Be the World’s Best Airport by 2020”
Customers
Airport you want to visit
again

Airlines

Communities

Airport in the world you mostwant to serve

Situation that encourages
growth in airline demand as
gateways to Japan

Rated World’s Best = World’s No. 1 Airport
Employees

Shareholders

Company you’re proud to workfor

Efficient management thatleverages expertise (intellectual
assets) in airport operations

Management Resources Critical to Realizing Long-Term Vision
Airport management
skill unmatchedanywhereJapan Airport Terminal Co., Ltd.

Capabilities enabling
overall airport
operations
11“Earnings capacity”
essential for growthinvestments

Engagement of
stakeholders

3-5. Positioning of New Medium-Term Business Plan
2015
Event

2016

2017

2018

G7 Summit

Transportation Start of Hokuriku
infrastructure Shinkansen highspeed rail service
readiness

Start of Hokkaido
Shinkansen highspeed rail service

Airportmanagement
reforms

Takamatsu

SendaiKansai
AirportExpansion ofTokyo metro area
arrival-departure
framework

2019

2020

Rugby
World CupTokyo Olympics andParalympics

JAPAN AIRPORTTERMINAL

Long-Term
VisionWorld’s Top-Rated Airport

Fukuoka
Hiroshima

Hokkaido

826,000 times

747,000 times

Competitiveenvironment

Opening ofEntry by Lotte
downtown dutyand Shillafree stores
Bid for Haneda Airport no. 2 zone

Tourist visitingJapan

19.74 million

Conclusion of TIAT business period

40 million

New Medium-Term Business Plan“To Be the World's Best Airport by 2020”“Address further evolution ofHaneda Airport and strengthenbusiness foundations for future
management of new airports”

2013-2015

Japan Airport Terminal Co., Ltd.

“Create business and earnings opportunities inpursuit of ‘vision’ for Haneda Airport andredevelop earnings base by staking out acompetitive position”

2016-2020

12

2038

3-6. Strategic Direction

JAPAN AIRPORTTERMINAL

Generate Future Earners to Expand
and Upgrade Business Domains

Switch to management strategies that
respond to a complicated and highly
uncertain management environment• Generate businesses for future earnings in follow-up to earnings corebusinesses (duty-free business, etc.)• Centered on Haneda, generate latent demand through synergies with other local
entities

Business Domains(Operating Revenues)

Dispersion ofbusiness risk

Future200Business risk

At Present• Overreliance on duty-free business• Diversification of duty-freeconsumption styles

200

Response (Strategy)
Anticipate diversification of customer
needs to generate new core earners

FY2015
Domestic
terminal
management

Low

Domestic
store
business

NewNewbusiness business(domestic) (overseas)

Urban
duty-freebusiness

Domestic
airport dutyfree business

High

Growth potential and risk

At present• Reliance on Tokyo metro area for
90% of Company earnings

Regional Portfolio (Operating Revenues)

Kansai

NaritaHaneda

FY2015
Japan Airport Terminal Co., Ltd.

Seek expansion of earnings
scale domestically and inother regions, overseas andin new businesses

RegionOverseas
OthersNaritaKansaiHanedaFutureFY2016–FY2020
13

Response (Strategy)• Centered on Haneda, generatelatent demand through synergies
with other local entities

3-7. Summary of “New Medium-Term Business Plan”“To Be the World's Best Airport by 2020”

JAPAN AIRPORTTERMINAL“Create business and earnings opportunities in pursuit of our‘Vision’ for Haneda Airport and redevelop earnings base bystaking out a competitive position”

Ahead of hosting of the 2020 Tokyo Olympics and Paralympics, the Japan Airport Terminal Building Group will ramp up
the continued pursuit of our ‘Vision’ for Haneda Airport as we aim to become the Haneda Airport company that
customers choose first.

Three Core Strategies
Redevelop Earnings Baseand Establish Competitive
Position

Expand Business Domains that
Leverage Strengths and Diversify
Earnings

Pursue ‘Vision’ for Haneda Airport

Leverage Haneda base to
upgrade and expand local domain
and generate businesses.

Respond effectively to hosting of Tokyo Olympics
and Paralympics, ensuring Haneda fulfills its role asa gateway to Japan by giving top priority to absolutesafety, particularly in terms of anti-terrorism
measures and sophisticated security.

Spur advancement throughbusiness commercialization andtechnological cooperation
incorporating 60 years of airport
management expertise.
Through expansion of core earnerscale and other means, further
pursue competitive position via
partnerships and collaboration.

Aim for continuous acquisition of targeted SKYTRAX
5 STAR ranking and next rank up service evaluation.
Generate latent customer value anticipated for
Haneda Airport in pursuit of our ‘Vision’ for thefacility.
Establish the Haneda Airport brand by aiming tocreate functionality and provide airport best solutions
in response to diversifying customer needs, notably
among non-Japanese visitors to Japan.

Implement customer value
creation-driven marketing.
Revive and revitalize existing
business through renovationand turnover.
Hone operational
improvement processes tobuild a competitive position.

Foundation for Implementation
Realignment and Enhancement of Organization, Human Capital and Governance
Organization that boosts
execution speed
Japan Airport Terminal Co., Ltd.

Production of human capital thatgenerates new value
14

Realignment and enhancementof governance3-8. Roadmap to Realization of Long-Term Vision
Issue

Measures（2016–2020）
Effective response to
Tokyo Olympics and Paralympics

Pursuit of clear customer
value

Ensuring world’s highest level of safety

Provide appropriate facilities and services for
growing number of passengers

Initiatives as gateway to Japan
Pursuit of vision for
Haneda Airport

Comprehensive branding for Haneda Airport

Generation of latentcustomer value

Generation of functionality in response to diversifying
passenger demands
Provision of airport best solutions

Establishment of Haneda brand↓
External development
Become a benchmark

Business development where domain is theentire airport

Conversion of platform value into a business

Earnings diversification through businessportfolio expansion

Outside sale of operational expertise

Expansion of comprehensive airport
consulting business

Further enhancement of airport consulting business

Redevelopment of
earnings baseand establish
competitive position

Business revival andrevitalization

Establish competitive
position

Implementation of customer value creation-based
marketing
Improvement of profitability through renovation andturnoverEnhancement of efficiency via improved operations

Establish absolute competitive strengthen inpassenger building business

Building dominance through scale expansion

Foundation for
Implementation
Organization that boosts
execution speed
Realignment andenhancement oforganization, humancapital and governanceCapabilities
enabling overall
airport operations

Expanding of business scale and supplement
knowhow
Develop expertise business

Production of human capitalthat generates new value
Realignment andenhancement ofgovernanceJapan Airport Terminal Co., Ltd.

Airportmanagement skills
unmatched anywhere

Creation of new businesses

Organizational realignment

Realization of development of
air freight through Haneda
Airport value creation

Expansion of businessdomains that leverage
strengths and earnings
diversification

Business upgrade andexpansion leveraging
Haneda as a baseRequired Management
Resources（2021–）

Chosen presence as
Haneda Airport
operator

Strategic Pillar

JAPAN AIRPORTTERMINAL

Earnings capacity
essential for growthinvestments

Rock solid corporate structure

Operational environment improvement via IT
utilization
Securing and embedding human capitalthrough ES improvement

Establishment of world’s
best labor environment

Implementation of corporate governance code
Bolstering presence as a global airport

Shareholder returns

15

Engagement of
stakeholders

3-9. Pursuit of ‘Vision’ for Haneda Airport

JAPAN AIRPORTTERMINAL

Pursuit of clear customer value and creation of latent customer value• As a hub of economic vitality, anticipate social changes and customer needs to create new airport value

Pursuit of Clear Customer Value

Creation of Latent Customer Value

Effective response to Tokyo Olympics and Paralympics

Creation of functionality in response to diversifying
passenger demands• Establish environment for receiving non-Japanese visitors to Japan• Renovate Domestic Passenger Terminal Building 1

Provision of airport best solutions

Initiatives as Gateway to Japan• Promote regional revitalization business• Develop and adopt robots and other cutting-edge technologies• Promote UHHA and study abroad business• Bolster grand handling business• Encourage shift to common use

Maintain World’s Highest Level of Safety• Sophisticate level of security• Adopt latest technology

Comprehensive branding for Haneda Airport• Maintain SKYTRAX 5 STAR ranking• Redevelop CS policy
Japan Airport Terminal Co., Ltd.

• VIP lounge business• Valet parking business, etc.

163-10. Expansion of Business Domains that Leverage Strengths andEarnings Diversification

JAPAN AIRPORTTERMINAL

Leverage Haneda base to upgrade and expand business, utilize expertise to generate profit• Promote creation of new businesses centered on Haneda as a base, while leveraging catalog of knowledge in airport
management cultivated over 60 years since founding to contribute to other airports and the development of other local
communities

Upgrade and Expansion
Leveraging Haneda as a BaseDevelop Expertise Business

Generation of new businesses

Outside sale of operational expertise• Participation in bids for and operation of domestic andoverseas airport operating rights• Loan, upgrade and expand system for delivery of duty-freemerchandise

Convert platform value into a business

Further enhancement of airport consulting business• Conduct consulting targeting domestic and overseas
airports• Conduct technological cooperation for national projects,
etc.

• Advertisement product diversification and upgrade andexpansion of sales locations
Expand business scale and supplement knowhow• Joint venture with Bic Camera Inc. (opening of second
AirBIC store)• Further upgrade and expansion of airline catering businessJapan Airport Terminal Co., Ltd.

17

3-11. Redevelop Earnings Base and Establish Competitive Position

JAPAN AIRPORTTERMINAL

Establish dominant competitive position by reviving
and revitalizing existing businesses• Revive and revitalize the earnings base in existing businesses (merchandise sales, food and beverage, facility
management and operation), enhancing efficiency to a level that establishes competitive dominance in day-to-day
operations

Business Revival and Revitalization

Establish Competitive Position

Implement customer value creation-driven marketing.

Build dominance through scale expansion• Anticipate diversifying customer needs• Adopt customer relationship management (CRM) system
for urban duty-free business• Develop multiple airport-style duty-free stores• Develop airport logistics business

Boost profitability through renovation and turnover• Renovate merchandise shops and restaurants for domestic
and international flight terminals• Renovate lounges, banquet rooms and other areas• Add second floor to P4 parking garage

Japan Airport Terminal Co., Ltd.

18

Enhance efficiency via improved operations• Cost reductions• Adoption of energy-saving facilities• Centralize procurement operations

3-12. Realignment and Enhancement of Organization,
Human Capital and GovernanceJAPAN AIRPORTTERMINAL

Realignment and enhancement of organization, human capitaland governance to support sustained development• Position human capital effectively and tighten organization to enable flexible execution and bold measures addressing
risks and problems rooted in complex factors, including labor shortages, times of social instability, and thediversification of individual values.
• Implement a corporate governance code for highly transparent information disclosure to shareholders and investors,
and to increase opportunities for dialogue.

•

Organization that boosts
execution speed

Production of human capitalthat generates new value

Realignment andenhancement of governance

Organizational realignment

Secure and embed human capitalthrough ES improvement

Implement corporate
governance code

Bolster group management structure•••

Operational environment
improvement via IT utilization•

Enhance/Improve daycare facility within
airport, and upgrade and expansion of
daycare staff
Promote career advancement of women
Produce a working environment
employees feel is healthy and worthwhile

Promote IT equipment standardizationand networking (including for the Group)Japan Airport Terminal Co., Ltd.

••

Shareholder returns•

19

Transit to international financial reporting
standards (IFRS)
Expand dialogue opportunities withshareholders and investors

Target payout ratio of 30% or more

3-13. Guidelines (Target Indicators)

JAPAN AIRPORTTERMINAL

Basic Approach to Business・ Take on the role of serving to continuously install optimal facilities that meet social requirements
・ Hold a certain level of internal reserves in order to maintain financial stability and reduce debt cost
・ Return to stakeholders returns gained from efficient management of owned assets

Target average for SKYTRAX Top 10 Airports, from global perspectiveof becoming “the World’s No. 1 Airport”
SKYTRAX Ranking“World’s Best Airports 2016”

FY2020 Targets

Rank

Indicator type

Indicator used

Comprehensive

ROA (business efficiency)

Profitability
Stability
Growth potential
Shareholder
returns

Japan Airport Terminal Co., Ltd.

TargetAirport１

Singapore Changi Airport

２

Incheon International Airport

３

Munich Airport

EBITDA(global cash base indicator)

４

Haneda Airport

５

Hong Kong International Airport

Equity ratio

６

Chubu Centrair International
Airport７

Zurich Airport

８

London Heathrow Airport

９

Kansai International Airport

10

Hamad International Airport

SKYTRAX

TOP3

Payout ratio20

3-14. Investment Plan (2016-2018)

JAPAN AIRPORTTERMINAL

Allocation of ¥100 billion to growth investments over three years
Aiming for ROA (ordinary income) of 8% by target date of FY2020¥50 billion

Pursuit of vision for Haneda Airport
Response to Tokyo Olympics and Paralympics, security level enhancement,
universal design, etc.
Expansion of business domains that leverage strengths and earnings diversification

Redevelopmentof earnings
base
10%

¥35 billion

Participation in overseas airport management/participation in domestic airport
concessions/expansion of airline catering business

Expansion ofbusiness thatleverages
strengths
35%¥10 billion

Redevelop earnings base and establish competitive position
Airport lounge renovation/T1 marketplace renovation, etc.
Realignment and enhancement of organization, human capital and governance¥5 billion

Integrated IT environment, including for Group companies/maintenance of dormitory
for single employees, etc.

¥100 billion

Total

150.0

Investment

ROA

7.9％

10.0%
8.0%

6.2%

100.0

50.0

EBITDA

37.3
0

17.4

2010–
2012
Japan Airport Terminal Co., Ltd.

8.0%
6.0%
4.0%

100.0

2.0%

2.0%
21.1 22.5
2013–
2015

28.0
2016–
2018
21

Enhancement oforganization andgovernance
5%

–2020

Pursuit ofvision50%

3-15. Profit-Loss Plan (2016-2018)

JAPAN AIRPORTTERMINAL

Tap into healthy demand to visit Japan to maintain Group earnings base (operating income ¥204 billion to¥238 billion)
While maintaining operating income ratio of 5%, conduct aggressive capital investments (¥100 billion) aheadof 2020 hosting of Tokyo Olympics and Paralympics and expansion in arrivals/departures framework forTokyo metro area airports
FY2015PAX

FY2016FY2017FY2018(10 thousands of people)

YOY change(10 thousands of people)

YOY change(10 thousands of people)

Domestic flights

6,270

0.1

6,330

1.0

6,330

-

6,330

-

International flights

1,342

16.2

1,530

14.0

1,580

3.3

1,610

1.9

Narita (international flights)

3,105

6.0

3,230

4.0

3,390

5.0

3,550

4.7

Kansai (international flights)

1,726

27.7

1,890

9.5

2,080

10.1

2,290

10.1

YOY change(10 thousands of people)

YOY change

HanedaPL (¥ billion)(¥ billion)(¥ billion)(¥ billion)(¥ billion)

Operating revenues

204.1

221.0

230.0

238.0

Facilities management

52.8

53.4

54.0

54.5

Merchandise sales

133.7

149.4

157.5

164.5

Food and beverage

17.5

18.2

18.5

19.0

Operating income

11.3

12.9

13.5

14.0

(Operating income ratio)(5.5%)(5.8%)(5.9%)(5.9%)

Ordinary income

13.6

15.6

17.0

20.0

Net income

8.8

11.1

12.0

14.0

ROA (ordinary income)

6.2%

6.8%

7.0%

7.9%

ROA (EBITDA)

10.2%

10.7%

11.4%

11.0%

Equity ratio

52.1%

51.6%

54.8%

53.3%

KPI

Japan Airport Terminal Co., Ltd.

22

4. Reference (SKYTRAX International Airport Evaluation)

JAPAN AIRPORTTERMINALIn SKYTRAX Global Airport Ranking

Haneda Airport Domestic Passenger Terminals Named“World’s Best Domestic Airport”
Haneda Airport Domestic and International Passenger Terminals Named“The World's Best Cleanest Airports”
In a Follow-up to 5-Star Airport Ranking
Named “World’s Best Domestic Airport”
Named “The World's Best Cleanest Airports”

In the “Global Airport Ranking 2015” conducted by United Kingdom-based SKYTRAX, Haneda Airport’s domestic and international
passenger terminals received a world-class “5-Star Airport” ranking for a second consecutive year, a first for a Japanese airport.
As a follow-up, Haneda Airport was awarded both “World’s Best Domestic Airport”
and “The World's Best Cleanest Airports” in a global airport ranking also conductedby SKYTRAX in March 2016.
In the “World’s Best Domestic Airport” category, Haneda Airport’s Domestic
Passenger Terminals ranked highly in areas such as ease of use and accessibility,
ranking No. 1 in the world for a fourth consecutive year. Also, In “The World’s
Cleanest Airports” category, where Haneda Airport was previously recognized two
years running through 2014, the facility was awarded once more thanks to therenewed effort of the entire staff of Haneda Airport, which resulted in high marks forcleanliness and comfort for both the domestic and international passenger terminals.
Additionally, Haneda Airport moved up from fifth place last year to a fourth-placeranking in the “World’s Best Airports” category, where airports receive an overall
evaluation.
Japan Airport Terminal Co., Ltd.

23

4. Reference (Destination cities of international flights)

JAPAN AIRPORTTERMINAL
City nameInternational Flights to 27 Cities, 29 Routes
Approximately 108 flights departing per day
China

Beijing

PEK

Hong Kong

HKG

Shanghai(Hongqiao)

SHA

Shanghai(Pudong)

PVG

Guangzhou

CAN

Korea

LondonParisFrankfurt

TSN

Gimpo

GMP

InchonNC

TaiwanTaipei(Songshan)
Taipei(Taoyuan)Australia

Sydney

8
1
5
3
4
5
3
4
2
12
2
1

TSA

8

TPE

3

SYD

2

Hanoi

HAN

2

Ho Chi Minh

SGN

1Singapore

Singapore

SN

Philippines

ManilaMNL

Indonesia

Jakarta

CGK

Thailand

Bangkok

BKK

Singapore

Malaysia

Kuala
LumpurKUL

1

Jakarta

EuropeFrance

Paris

CDG

3

UnitedKingdomLondonLHR

3Frankfurt

FRA

Munich

MUC

MunichBeijing
Gimpo
Tianjin
InchonShanghai (Pudong)

TorontoSan Francisco

HanedaLos Angeles

Shanghai (Hongqiao)

Dubai

TianjinSlots/daySoutheast Asia

Vancouver

Doha

Code

Taipei (Songshan)
Taipei (Taoyuan)
Hong Kong

Guangzhou

Hanoi
Bangkok
Ho Chi Minh City

Honolulu

ManilaVietnam

Kuala Lumpur

Germany
Sydney

5
2
2
1
2
3
3

2
1
2

North America
CanadaVancouver

YVR

TorontoYYZ

Honolulu

HNL

San Francisco

SFO

Los Angeles

LAX

6:00 – 23:00
America

23:00 – 6:00
Both daytime flight and late night/early morning flight hours

Middle East
UAE

Dubai

DXB

Qatar

Doha

DOX

International departures total

Japan Airport Terminal Co., Ltd.

1
1
1
2
2
3

24

1
1
108

(As of May 2016)

Earnings Explanatory Meeting
April 1, 2015 to March 31, 2016 (FY15)

Supplementary Material
1. Details of Consolidated Financial Results for FY15
2. Details of Consolidated Financial Forecast for FY16
3. Other Information* This document has been translated from the Japanese original, for reference purposes only.
If there is any discrepancy between this translated document and the Japanese original, the original will prevail.

Japan Airport Terminal Co., Ltd.
http://www.tokyo-airport-bldg.co.jp/

1. Details of Consolidated Financial Results for FY15(1) Changes in passenger volume (Haneda, Narita and Kansai)(Thousand passengers)

70,000(Thousand passengers)

16,000

Haneda Airport – domestic flights

68,00014,000

FY15 results +0.1%

66,000(Adjusted forecast Oct. 2015 +0.4%)

62,65664,00060,00058,00012,00010,0007,950Mar. 2011
Great East Japan Earthquake

6,000

56,42452,0002,000
FY48,000
201 0

201 1

201 2

201 3

2014

2015

201 6

Results

Forecast

Narita Airport – international flights

FY

2010

2011

2012

2013

2014

2015
Results

2016
Forecast

Kansai Airport – international flights

19,000

FY15 results +6.0%
35,000

0(Thousand passengers)(Thousand passengers)

37,000Oct. 2010
New International Terminal
started operation

4,000

Mar. 2011
the Great East
Japan Earthquake

50,000(＋16.2％)Mar. 2014
Increase in the number oflanding slots(30,000 / year)

8,039

7,267

58,752

1H results -0.3%
2H results +0.5%

11,5581H result s +8.8%
2H results +23.5%

8,000

56,00054,000(＋14.0％)(Adjusted forecast Oct. 2015 -1.2%)(＋0.1％)

61,41013,426

FY15 results +16.2%

63,300(＋1.0％）

Oct. 2010
Expanded Terminal 2
at Haneda Airport

62,00062,70015,300

Haneda Airport – international flights

18,90017,268

FY15 forecasts +27.7%(Adjusted forecast Oct. 2015 -0.1%)

17,000(＋9.5％)(Adjusted forecast Oct. 2015 +4.7%)

32,30033,00030,86231,00029,000(＋4.0％）

29,302

29,710(＋27.7％)31,055(＋6.0％）

15,00013,518May 2009
H1N1 influenza outbreak

13,00012,051

26,926
Mar. 2011
the Great East Japan Earthquake

27,00011,000

1H results +6.0%
2H results +5.9%

25,0009,000
FY23,000
201 0

201 1

11,428
10,114

201 2

201 3

201 4

201 5

Results

201 6

Forecast

1H results +28.2%
2H results +27.2%

7,000

FY

201 0

201 1

201 2

201 3

201 4

201 5

Results

201 6

Forecast* Passenger volume

Japan Airport Terminal Co., Ltd.

26

Results: Figures published by Minister of Land, Infrastructure, Transport and Tourism,
Narita International Airport Corporation and Kansai International Airport Co., Ltd.
Forecast: Created by the Company

1. Details of Consolidated Financial Results for FY15(2) Consolidated financial results for FY15

Items

FY15

FY14

(Results)(Results)

Ratio

ChangeRatio

Revised forecast(Oct. 2015)

Rate ofchangeDifference

Ratio

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

204,134
52,880133,718
17,535110,070

100.0

173,505

100.0

30,62917.7

209,400

100.0-5,26525.9

49,036

28.2

3,843

7.8

51,400

24.5

1,480

65.5

108,75162.7

24,96723.0

140,900

67.3-7,181

8.6

15,717

9.1

1,818

11.6

17,100

8.2

435

54.0

89,95651.8

20,11322.4

114,000

54.4-3,929

Cost of sales ofmerchandise

99,95649.0

80,74646.5

19,21023.8

103,800

49.6-3,843(Ratio)(74.8%)

Operating revenues
Facilities management
Merchandise sales
Food and beverage

Cost of sales

Cost of sales of food andbeverage(Ratio)10,114(74.2%)

5.0(57.7%)

9,210(0.6P)

5.3(58.6%)

903(73.7%)

9.8(-0.9P)

10,200(1.1P)

4.8(59.6%)-85(-1.9P)

Gross profit

94,06446.1

83,54848.2

10,516

12.6

95,40045.6-1,335

Selling, general andadministrative expenses

82,761

40.5

73,659

42.5

9,101

12.4

83,70040.0-938Operating income

11,302
2,351
13,654
-194
8,870

5.5

9,888

5.7

1,414

14.3

11,700

5.6

-397

1.2

1,960

1.1

390

19.9

1,500

0.7

851

6.7

11,849

6.8

1,804

15.2

13,200

6.3

454

-0.1

-330

-0.2

135

-41.0

-200

-0.1

5

4.3

6,648

3.8

2,222

33.4

8,900

4.3

-29

Non-operating income/loss
Ordinary income
Extraordinary income/loss
Net income* Ratio: Cost of sales of merchandise / Operating revenues of merchandise
Ratio: Cost of sales of food and beverage / Operating revenues of food and beverage
Japan Airport Terminal Co., Ltd.

27

Note: Figures shown are rounded down to the nearest million yen.

1. Details of Consolidated Financial Results for FY15(3) Financial results by segment(i) Facilities management
Items

FY15

FY14

(Results)(Results)

Ratio

Rate ofchangeChangeRatio

Revised forecast(Oct. 2015)

Difference

Ratio

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

Rentalrevenues
revenueRent

12,90023.5

12,895

25.3

4

0.0

12,80024.0

100Facility user charges
revenues

17,851

32.5

17,917

35.1

-65

-0.4

17,80033.4

51

Other revenues

22,12840.3

18,223

35.8

3,905

21.4

20,800

39.0

1,328

Subtotal

52,88096.3

49,036

96.2

3,843

7.8

51,400

96.4

1,480

Intersegment
sales
and
Intersegment
sales
transfers

2,006

3.7

1,951

3.8

55

2.9

1,900

3.6

106

Total

54,887100.0

50,987

100.0

3,899

7.6

53,300

100.0

1,587

Operating expenses

48,75188.8

45,617

89.5

3,134

6.9

48,10090.2

651

Operating income

6,135

11.2

5,369

10.5

765

14.3

5,200

9.8

935

Sales to external customers(Ratio)• Other revenues:

Japan Airport Terminal Co., Ltd.

(11.2%)(10.5%)(0.7P)

Increase in TIAT commissioned facility management revenues
Increase in hotel revenues
Increase in advertising revenue

28(9.8P)(1.4P)+¥2.4 billion+¥1.1 billion+¥0.4 billion

Note: Figures shown are rounded down to the nearest million yen.

1. Details of Consolidated Financial Results for FY15(3) Financial results by segment(ii) Merchandise sales
Items

FY15

FY14

(Results)(Results)

Ratio

Revised forecast(Oct. 2015)

Rate ofchangeChangeRatio

Difference

Ratio

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

Domestic terminal stores

33,42424.9

33,168

30.3

255

0.8

33,50023.7-75International terminal
stores35,12426.1

28,078

25.7

7,045

25.1

41,70029.4-6,575

Other sales

65,16948.5

47,503

43.4

17,66637.2

65,70046.4-530133,718

99.4

108,75199.4

24,96723.0

140,900

99.5-7,181

753

0.6

672

0.6

80

11.9

700

0.5

53

Total

134,471

100.0

109,424100.0

25,04722.9

141,600

100.0-7,128Operating expenses

124,995

93.0

100,58891.9

24,40624.3

130,600

92.2-5,604

Operating income

9,476

7.0

8,835

8.1

640

7.2

11,0007.8-1,523

Sales to external customers

SubtotalIntersegment sales
andIntersegment
sales
transfers(Ratio)• Domestic terminal stores:• International terminal stores:• Others:

Japan Airport Terminal Co., Ltd.

(7.0%)(8.1%)(-1.1P)(7.8%)

Increase in sales of directly managed stores at Haneda domestic terminal
Increase in sales of directly managed stores at Haneda international terminal
Increase in sales of directly managed stores in Narita Airport
Increase in sales of boutique stores at Kansai Airport
Increase in wholesale sales to Haneda international flights, regional airports, etc.
Increase in wholesale sales to Narita Airport
Increase in wholesale sales to Chubu Centrair International Airport

29(-0.8P)+¥0.2 billion+¥0.5 billion+¥3.4 billion+¥2.2 billion+¥14.5 billion+¥2.0 billion+¥0.7 billion

Note: Figures shown are rounded down to the nearest million yen

1. Details of Consolidated Financial Results for FY15(3) Financial results by segment(iii) Food and beverage
Items

FY15

FY14

(Results)(Results)

Ratio

ChangeRatio

Rate ofchangeInitial forecast(Oct. 2015)

Difference
Ratio

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

Sales from restaurants

9,549

47.6

9,204

50.8

345

3.7

9,300

47.0

249

Sales from in-flight meals

5,685

28.3

4,511

24.9

1,173

26.0

5,500

27.8

185

Other sales

2,300

11.5

2,000

11.0

299

15.0

2,300

11.6

0

Subtotal

17,53587.4

15,717

86.7

1,818

11.6

17,10086.4435Intersegment sales

Intersegment sales andtransfers

2,528

12.6

2,415

13.3

112

4.7

2,700

13.6

-171

Total

20,063100.0

18,132

100.0

1,931

10.7

19,800100.0263

Operating expenses

19,49997.2

17,954

99.0

1,545

8.6

19,30097.5

199

Operating income

564

2.8

178

1.0

386

216.9

500

2.5

64

Sales to external customers(Ratio)(2.8%)(1.0%)(1.8P)(2.5%)• Sales from restaurants: Increase in sales of new store development• Sales from In-flight meal: Increase in sales of new customer contracts• Other sales:
Increase in income from contract work to run TIAT restaurants

Japan Airport Terminal Co., Ltd.

30

(0.3P)+¥0.3 billion+¥1.1 billion+¥0.3 billion

Note: Figures shown are rounded down to the nearest million yen.

1. Details of Consolidated Financial Results for FY15
(4) Breakdown of selling, general and administrative expenses

Items

FY15

FY14

(Results)(Results)

Ratio

ChangeRate of change

Ratio

Millions of yen%

Millions of yen%

Millions of yen%

204,134

100.0

173,505

100.0

30,62917.7

Selling, general andadministrative expenses

82,761

40.4

73,659

42.5

9,101

12.4

Salaries and wages

9,233

4.5

8,408

4.7

825

9.8

Provision for employees’ bonuses

1,340

0.7

1,103

0.6

236

21.5

Provision for directors’ bonuses

245

0.1

196

0.1

48

24.9

Expenses for retirement benefits

913

0.4

990

0.5

-76

-7.7

Rent expenses

12,6796.2

10,342

6.0

2,336

22.6

Business consignment expenses

22,32010.9

17,626

10.2

4,694

26.6

Depreciation expenses

11,232

5.5

11,872

6.8

-639

-5.4

Other costs and expenses

24,795

12.1

23,119

13.3

1,675

7.2

Operating revenues

Japan Airport Terminal Co., Ltd.

31

Note: Figures shown are rounded down to the nearest million yen.

1. Details of Consolidated Financial Results for FY15(5) Changes in non-operating income/expenses and extraordinary income/loss
Items

FY15

FY14

(Results)(Results)

Ratio

ChangeRate of change

Ratio

Millions of yen%

Millions of yen%

Millions of yen%

Operating revenues

204,134

100.0

173,505

100.0

30,629

17.7

Operating income

11,302

5.5

9,888

5.7

1,414

14.3

Non-operating income

3,089

1.5

2,979

1.7

109

3.7

Interest income and dividend

887

0.4

721

0.4

165

22.9

Return on investment by theequity method

1,529

0.8

1,315

0.8

213

16.2

672

0.3

941

0.5

-269

-28.6

Non-operating expenses

737

0.4

1,018

0.6

-280

-27.6

Interest expenses

556

0.3

746

0.4

-190

-25.5

Miscellaneous expenses

181

0.1

271

0.2

-90

-33.3

Ordinary income/loss

13,654

6.7

11,849

6.8

1,804

15.2

Extraordinary income

24

0.0

-

-

24

0.0

Extraordinary loss

219

0.1

330

0.2

-110

-33.5

Income taxes

4,589

2.2

4,871

2.8

-282

-5.8

Net income

8,870

4.3

6,648

3.8

2,222

33.4

OthersJapan Airport Terminal Co., Ltd.

32

Note: Figures shown are rounded down to the nearest million yen.

1. Details of Consolidated Financial Results for FY15(6) Consolidated balance sheets(Millions of yen)

Cash and deposits-¥17.3 billion
Accounts receivable+¥27.6 billion

38,02974,203
Tangible fixed assets(depreciable assets)
Buildings, etc.
+¥3.2 billion
Accumulated depreciation-¥7.8 billion

Current
assets+4,72243,357

69,480Long-term loans payable-¥7.1 billion

67,669Fixed
assetsInvestments and other assets
Investment securities+¥1.6 billion

Current
liabilities+5,327

Accounts payable – trade+¥0.8 billion
Income taxes payable-¥0.3 billion
Others+¥5.3 billion
Long-term loans payable(To be repaid within a year)-¥0.7 billion

Fixedliabilities-6,87860,790-409
Retained earnings+¥6.6 billion
Valuation difference+¥0.5 billion

148,339

Equity ratio

148,748

Total assets 218,229
Net assets+5,864FY15Japan Airport Terminal Co., Ltd.

FY14

FY14
33

52.1%

FY14

50.2%

118,394

112,530

Total assets 222,542

FY15(+1.9P)

FY15
Note: Figures shown are rounded down to the nearest million yen.

1. Details of Consolidated Financial Results for FY15(7) Consolidated statements of cash flows
FY15(Results)

Items

FY14
(Results)

ChangeMillions of yen

Millions of yen

Millions of yen

15,235

19,520-4,284

Income before income taxes and minority interests

13,45911,5191,940

Depreciation and amortization

11,311

11,954-642

Other current assets

-896

409

-1,305

Other current liabilities

4,383

3,997

386

Other fixed liabilities

-149

-109

-39

Others-7,368-4,955-2,412

Income and other taxes paid

-5,505-3,294-2,211

Cash flows from investing activities-7,810-4,008-3,802

Purchase of tangible fixed assets-6,734-3,677-3,056

Purchase of intangible fixed assets

-649

-281

-367

Others

-427

-48

-378

-10,759

16,251-27,011

Proceeds from long-term loans payable

3,500

-

3,500

Repayment of long-term loans payable-11,402-12,272

870

Dividends payment-2,193-1,299-893-664

29,823-30,487-2

0-1

Increase (decrease) in cash and cash equivalents-3,332

31,763-35,096

Cash and cash equivalents at beginning of period

46,897

15,13331,763

Cash and cash equivalents at end of period

43,56546,897-3,332

Cash flows from operating activities

Cash flows from financing activities

Others
Effect of exchange rate change on cash and cash equivalents

Japan Airport Terminal Co., Ltd.

34

Note: Figures shown are rounded down to the nearest million yen.

1. Details of Consolidated Financial Results for FY15
[Reference] Purchasing Trends of Non-Japanese Passengers by Nationality (1)(1) The number of departing non-Japanese visitors by airport (monthly average)Japan

HanedaNaritaKansaiOther

No. of passenger Composition ratio No. of passenger Composition ratio No. of passenger Composition ratio No. of passenger Composition ratio No. of passenger Composition ratio
volume (person)(%)
volume (person)(%)
volume (person)(%)
volume (person)(%)
volume (person)(%)

1,267,002
1,734,159

FY14
FY15

100
100

164,825
225,08013
13

430,551525,31834
30

286,772
454,90823
26

384,854528,8103030(2) The number of departing non-Japanese visitors by airport and nationality (monthly average)○ Volume ranking and change in departing passengers by nationality for FY15
Haneda Airport
No. ofpassenger
volume (person)

Narita Airport

Composition
ratio (%)

No. ofpassenger
volume (person)

Change (%)

Kansai Airport

Composition
ratio (%)

No. ofpassenger
volume (person)

Change (%)

Composition
ratio (%)

Change (%)

China (incl.
Hong Kong)

55,82824.8

91.8

China (incl.
Hong Kong)

148,459

28.3

32.2

China (incl.
Hong Kong)

170,120

37.4

83.7

South Korea

39,688

17.6

12.1

South Korea

87,390

16.6

34.1

South Korea

111,923

24.6

72.4

Taiwan25,135

11.2

8.2

Taiwan54,82910.4

10.1

Taiwan87,787

19.3

39.6

U.S.A

17,038

7.6

39.5

U.S.A

49,118

9.4

17.7

U.S.A

15,071

3.3

32.1

No. ofpassenger
volume (person)

Composition
ratio (%)

No. ofpassenger
volume (person)

Change (%)

Composition
ratio (%)

No. ofpassenger
volume (person)

Change (%)

Composition
ratio (%)

Change (%)

Non-Japanese

225,080

41.1

36.6

Non-Japanese

525,318

49.3

22.0

Non-Japanese

454,908

64.6

58.6

Japanese

322,612

58.9

2.7

Japanese539,456

50.7

-3.8

Japanese

249,680

35.4

-4.5

Total

547,692

100.0

14.4

Total

1,064,774

100.0

7.4

Total

704,588

100.0

28.5

○ Number of departing non-Japanese passengers
100

China
(incl. Hong Kong)
中国（香港含む）

40

韓国 KoreaSouth(+91.8%)

台湾
Taiwan東南アジアAsia
South-East
Europe/U.S.A.
欧米
Others
その他

30

120
100

80

(+11.2%)(+32.2%)(+40.2%)(+12.1%)20(+14.0%)（+8.2%)

10(+55.2%)60(+34.1%)40(+22.4%)(+17.7%)(+13.1%)

20
0

0
1H
上期

2H
下期
2014

1H
上期

2H
下期

上期
1H

下期
2H
2014

2015

上期
1H

下期
2H
2015

(+83.7%)80(+72.4%)60(+39.6%)40(+28.3%)(+28.7%)(+27.3%)

20
0
上期
1H

下期
2H
2014

Notes: Passenger data has been aggregated by the company using immigration statistics from the Ministry of Justice. Data from April 2015 to February 2016. Transit passengers are not included in passenger number.

Japan Airport Terminal Co., Ltd.

35

上期
1H

下期
2H
2015

1. Details of Consolidated Financial Results for FY15
[Reference] Purchasing Trends of Non-Japanese Passengers by Nationality (2)(3) Company duty-free store sales and number of departing passengers by airport and nationality (monthly average)
Haneda

4,000

Japan
日本
South Korea
韓国
Taiwan台湾
Europe and US
欧米South-East Asia
東南アジア
Other countries
その他

3,500

3,000

2,500

1,500

1,000

314

81
85
160
241

500

550
-0

600

771

500

4,000

560

KansaiJapanese travelers(Change)

539 (-3.8％)

600

80
117
183

400

286

322(+2.7%)500454 (+58.6％)

Foreign travelers(Change)

2,500

1,099

2,500

300

2,000

100

Japanese travelers(Change)

200

200

59
75

72
65

500

775

124

374

-0

-0

2014

200

111

100

500

300

1,000

311

326

400

249 (-4.5％)

1,500

602

2015

286
261

0

2014

Foreign travelers(Change)

400

2,000

1,000

500

3,000

430

1,500

225(+36.6%)

600

3,500

525 (+22.0％)
3,000

4,000

1,167

1,083

164

Figures in () arepercent change

300

Foreign travelers(Change)

2,000

497

Narita(No. of travelers: thousands)

3,500Japanese travelers(Change)(Net sale: Millions of yen)
China
中国

642

-0

2015

100

-0

2014

2015

Notes: “Net sales” denote all store sales (excluding tax-exempt stores). Haneda: all duty-free stores; Narita: directly managed stores and boutiques; Kansai: directly managed boutiques. Sales by nationality include estimates.

(4) Main factors in the fluctuation of sales of duty free shops and purchasing trends«Haneda»Increased flights from China has doubled sales especially from Chinese passengers, with the share of sales from visitors from China at roughly 30% for the fullyear (approx. 25% share for visitors from China in the first half of the year)
Brisk sales of cosmetics and food items from non-Japanese visitors to Japan«Narita»
The share of sales from Japanese nationals was roughly 22%, reflecting a decline in Japanese passengers
The share of sales from Chinese visitors to Japan held at 55% for the full year (approx. 60% share for visitors from China in the first half of the year), largely due
to a downturn in buying demand centered on Chinese passengers from the second half of the year
«Kansai»
While the share of sales from Chinese visitors to Japan was roughly 70%, sales of premium-priced products lagged from the second half of the year (approx.
75% of sales from Chinese visitors to Japan in the first half of the year)
41
Japan Airport Terminal Co., Ltd.

36

2. Details of Consolidated Financial Forecast for FY16
(1) Consolidated financial forecast for FY16
Items

FY16

FY15

(Forecasts)(Results)

Ratio

Rate of
ChargeChangeRatio

Millions of yen%

Millions of yen%

Millions of yen%

221,000
53,400149,400
18,200120,200

100.0

204,134

100.0

16,865

8.3

24.2

52,880

25.9

519

1.0

67.6

133,71865.5

15,681

11.7

8.2

17,535

8.6

664

3.8

54.4

110,070

53.9

10,1299.2

Cost of sales ofmerchandise

109,700

49.6

99,956

49.0

9,743

9.7

(Ratio)(73.4%)

Operating revenues
Facilities management
Merchandise sales
Food and beverage

Cost of sales

Cost of sales of food andbeverage(Ratio)Gross profit
Selling, general andadministrative expenses
Operating income
Non-operating income/loss
Ordinary income

10,500

10,114(-1.4P)

4.9(57.7%)

385

3.8

-

100,800

45.6

94,064

46.1

6,735

7.2

87,90039.8

82,761

40.6

5,138

6.2

12,9002,700
15,6005.8

11,302

5.5

1,597

14.1

1.2

2,351

1.2

348

14.8

7.0

13,654

6.7

1,945

14.2

-

-

-194

-0.1

194

-

11,100

5.0

8,870

4.3

2,229

25.1

*Preconditions: Forecast of number of passengers
Haneda domestic (full-year)

4.8(57.7%)

Extraordinary income/loss
Net income(74.8%)+1.0% YoY

* Ratio: Cost of sales of merchandise/Operating revenues of merchandise
Ratio: Cost of sales of food and beverage/Operating revenues of food and beverage

Haneda international (full-year) +14.0% YoY
Narita international (full-year)+4.0% YoY

Kansai international (full-year)+9.5% YoY

Japan Airport Terminal Co., Ltd.

37

Note: Figures shown are rounded down to the nearest million yen.

2. Details of Consolidated Financial Forecast for FY16(2) Financial forecast by segment(i) Facilities management
Items

FY16

FY15

(Forecasts)(Results)

Ratio

Rate ofchangeChangeRatio

Millions of yen%

Millions of yen%

Millions of yen%

Rentalrevenue
Rent revenues

13,00023.5

12,900

23.5

99

0.8

Facility user charges revenues

18,00032.6

17,851

32.5

148

0.8

Other revenues

22,40040.5

22,128

40.3

271

1.2

53,40096.6

52,880

96.3

519

1.0

Intersegment sales

1,900

3.4

2,006

3.7

-106

-5.3

Total

55,300100.054,887

100.0

412

0.8

Operating expenses

49,50089.5

48,751

88.8

748

1.5

Operating income

5,800

10.5

6,135

11.2

-335

-5.5

Sales to external customers

Subtotal(Ratio)• RentRentalrevenues
revenue:• Facility user charges revenues:• Other revenues:

Japan Airport Terminal Co., Ltd.

(10.5%)(11.2%)

Increase in space leased to airline companies, etc.
Increase in income from PSFC
Increase in advertising revenue

38(-0.7P)+¥0.1 billion+¥0.1 billion+¥0.3 billion

Note: Figures shown are rounded down to the nearest million yen.

2. Details of Consolidated Financial Forecast for FY16(2) Financial forecast by segment(ii) Merchandise sales
Items

FY16

FY15

(Forecasts)(Results)

Ratio

Rate ofchangeChangeRatio

Millions of yen%

Millions of yen%

Millions of yen%

Domestic terminal stores

34,00022.7

33,424

24.9

575

1.7

International terminal stores

46,00030.6

35,12426.1

10,875

31.0

Other sales

69,40046.2

65,169

48.4

4,230

6.5

149,400

99.5

133,718

99.4

15,681

11.7

700

0.5

753

0.6

-53

-7.1

Total

150,100

100.0

134,471

100.0

15,628

11.6

Operating expenses

138,300

92.1

124,995

93.0

13,304

10.6

Operating income

11,800

7.9

9,476

7.0

2,323

24.5

Sales to external customers

SubtotalIntersegment sales(Ratio)• Domestic terminal stores:• International terminal stores:(7.9%)(7.0%)(0.9P)

Increase in sales of directly managed stores at Haneda domestic terminal
Increase in sales of directly managed stores at Haneda international terminal (Opening of AirBIC, etc.)
Decrease in sales of directly managed stores at Narita Airport
Decrease in sales of boutique store at Kansai Airport

Increase in sales accompanying full-year operation of urban duty-free stores• Others:

Japan Airport Terminal Co., Ltd.

Increase in wholesale sales to Haneda domestic terminal and regional airports, etc.
Decrease in wholesale sales to Narita Airport
39+¥0.4 billion+¥1.2 billion-¥2.0 billion-¥0.8 billion+¥12.4 billion+¥5.6 billion-¥1.5 billion

Note: Figures shown are rounded down to the nearest million yen.

2. Details of Consolidated Financial Forecast for FY16(2) Financial forecast by segment(iii) Food and beverage
Items

FY16

FY15

(Forecasts)(Results)

Ratio

Rate ofchangeChangeRatio

Millions of yen%

Millions of yen%

Millions of yen%

Sales from restaurants

9,600

46.4

9,549

47.6

50

0.5

Sales from in-flight meals

6,200

29.9

5,685

28.3

514

9.0

Other sales

2,400

11.6

2,300

11.5

99

4.3

18,20087.9

17,535

87.4

664

3.8

2,500

12.1

2,528

12.6

-28

-1.1

Total

20,700100.0

20,063

100.0

636

3.2

Operating expenses

20,10097.1

19,499

97.2

600

3.1

Operating income

600

2.9

564

2.8

35

6.3

Sales to external customers

SubtotalIntersegmentsales
salesand transfers
Intersegment(Ratio)• Sales from in-flight meals:

Japan Airport Terminal Co., Ltd.

(2.9%)(2.8%)(0.1P)

Increase in sales of in-flight meals contracts from new non-Japanese carriers

40+¥0.5 billion

Note: Figures shown are rounded down to the nearest million yen.

3. Other Information(1) Capital expenditure and depreciation expenses
FY11

FY12

FY13

FY14

FY15

FY16

(Results)(Results)(Results)(Results)(Results)(Forecasts)

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Capital expenditure

8,140

7,215

5,765

4,828

8,379

11,206

Depreciation expenses

13,954

12,865

12,68011,872

11,232

11,835

Items• Breakdown of Major Capital Expenditures
FY16 (Forecast)

FY15 (Results)
New construction of an urban duty free store¥2.3 billion

Building 1 renewal¥1.6 billion

Building 1 PBB update¥0.7 billion

Construction costs of dormitory for single employees ¥1.1 billion

Building 1 south side toilet upgrade¥0.4 billion

Lounge renovation¥0.8 billion

Central surveillance system update construction¥0.3 billion

Building 1 PBB update¥0.7 billion

Installation of PBB outdoor advertisingboards at Building 1 and Building 2

Building 1 north side toilet upgrade¥0.4 billion¥0.3 billion• Breakdown of main depreciation expenses
FY11

FY12

FY13

FY14

FY15

(Results)
Billions of yen(Results)
Billions of yen(Results)
Billions of yen(Results)
Billions of yen(Results)
Billions of yen

Terminal 1

4.1

4.4

4.2

4.0

3.9

4.2

Terminal 2

5.6

6.1

5.2

5.4

5.0

4.4

P4 Parking

0.6

0.6

0.5

0.5

0.4

0.3

Japan Airport Terminal Co., Ltd.

41

FY16
(Forecasts)

Billions of yen

Note: Figures shown are rounded down to the nearest million yen.

3. Other Information(2) Changes in operating revenues/ordinary income/cash flows(left) Operating revenues (results)(right) Cash flows(right) Ordinary income (results)(left) Operating revenues (forecast)(right) Cash flows (forecast)(right) Ordinary income (forecast)Billions of yen
H1N1 influenza outbreak

Financial crisis being
triggered by the US

Hikes in the priceof crude oil

Chubu International
Airport opened

40
35
30
25

Haneda Airport Terminal 2
started operation (Dec. 2004)

Haneda Airport Terminal 1
started operation (Sep. 1993)

120

The extended part ofHaneda Airport Terminal 2
and TIAT Haneda Airport
started operation (Oct. 2010)

45

Great East Japan Earthquake

160

9-11 Terrorist Attack in the US
Iraq war
SARS outbreakY2K task

Financial realignment

200

Kansai International
Airport opened

Narita Airport Terminal 2
started operation

240

Voluntary closure of
Yamaichi Securities

Billions of yen

17.1

18.1

19.2 20

17.7

80

15.1

13.9

13.3
10.7

40

3.1

0
'89

'90

'91

'92

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

13.6

0.1

3.6

'11

'12

5

5.7

'13

15
10

11.8

6.7
4.9

15.6

14.6

'14

←

'15

→

0

'16

Results Forecast(Cash flows = Net income + Depreciation expenses – Dividends)
Japan Airport Terminal Co., Ltd.

42

April 1, 2015 to March 31, 2016 (FY15)

Reference Material
1．Outline of the Company
2．Efforts Related to the Tokyo International Airport
Re-expansion Project
3．Changes in Passenger Volume on Domestic andInternational Flights (Haneda and Narita)* 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.

Japan Airport Terminal Co., Ltd.
http://www.tokyo-airport-bldg.co.jp/

1. Outline of the Company(1) Company history
Haneda Airport was re-launched as Japanese air gateway after being returned by the U.S. in 1952. However, on account of a lack offinancial resources after the war, only the costs for paving the taxiway and apron were included in the national budget. Therefore,
it was decided to build the terminal with private funds (cabinet approved), and in 1953 the Company was founded with thecooperation of major financial institutions (with capital 150 million yen), and the terminal was opened in May 1955.
1953
1955
1964

(July)(May)(April)1978(October)(May)

Established with private sector capital of 150 million yen.
The terminal building opened and launched operation.
Separate domestic arrival terminal building completed in time with the Tokyo Olympic Games.

1998

Duty-free sales operations commenced.
Commenced merchandise sales including duty-free articles, hotel reservation services and otheroperations with the opening of Narita International Airport.
(February)
Listed on second section of the Tokyo Stock Exchange.
(September) Listed on first section of the Tokyo Stock Exchange.
(September) Haneda Airport Terminal 1 (Big Bird) started operation.
(September) Launched commissioned operation of duty-free stores and wholesale of duty-free goods
accompanying opening of the Kansai Airport.
(March)The temporary international terminal at Haneda Airport started operation.

2001
2002

(February)(April)

1990
1991
1993
1994

2003

International charter flights commenced at Haneda Airport.
Terminated periodic international flights from Haneda Airport (transfer of China Airlines and the
EVA Airways to Narita).
(November) International charter flights between Haneda and Seoul (Gimpo) commenced.

2004
2005

(December) Terminal 2 at Haneda Airport started operation.
(February)
Wholesale of duty-free goods commenced with the opening of Central Japan International Airport.

2006(April)(June)

Participated in the project of the maintenance and operation of terminal at international flight areaof the Tokyo International Airport.
Invested in the special purpose company (SPC) “Tokyo International Air Terminal Corporation.”

2007(February)South Pier in Terminal 2 at Haneda Airport started operation.
(September) International charter flights between Haneda and Shanghai (Hongqiao Airport) commenced.

2008(April)International charter flights between Haneda and Hong Kong commenced (during specific hours).

2009(April)Designated as an Airport Facilities Operator under the revised Airport Act.

(October)International charter flights between Haneda and Beijing commenced.

(August)P4 multi-story parking main building started operation (full-scale operation scheduled in October).

(October)

The extended part of Terminal 2, Haneda Airport started operation.
The new International Passenger Terminal (TIAT) started operation.

2011(January)

Established Japan Airport Terminal Trading (Chengdu) Co., Ltd.

2013

(November) Renewal of Terminal 1 building, Haneda Airport completed.
(April)The extended part of south Pier in Terminal 2 at Haneda Airport started operation.

2014(March)2010

Haneda Airport Terminal when opened

Start of usage of international passenger terminal building expansion.

Japan Airport Terminal Co., Ltd.

44

Haneda Airport Terminal 1

Haneda Airport Terminal 2

1. Outline of the Company(2) The Group’s business expansion
Haneda Airport (Tokyo International Airport)
Terminal 1 (area under management: 291,500 m2)

Started operation on September 27, 1993

• Construction, management,
and operation of terminalbuildings• Real estate leasing• Merchandise sales(direct management)• Food and beverage services(direct management)• Passenger services• Preparation/sales of in-flightmeals

International Passenger Terminal(constructed and managed by Tokyo International Air Terminal Corporation)

Terminal 2 (area under management: 255,600 m2)

Started operation on December 1, 2004
South Pier started operation on February 15, 2007
The extended part of Terminal 2 started operation on October 13, 2010
The extended part of south Pier in Terminal 2 at Haneda Airport started
operation on April 8, 2013.

Parking lots
Business under contract• Facilities maintenance/management• Duty-free store operation, etc.
• Passenger services

Management of parking lots
(total of 4,775 spots)• P1 parking lot 2,350 spots• P4 parking lot 2,425 spots

Started operation on October 21, 2010

Narita International
Airport• Merchandise sales (duty-free stores, etc.)• Wholesale (duty-free items, general items),
commissioned management of duty-free stores• Food and beverage service• Passenger services• Preparation/sales of in-flight meals

Japan Airport Terminal Co., Ltd.

• Wholesale and merchandise sales• Food and beverage services

Kansai International
Airport• Commissioned management of duty-free stores• Merchandise sales• Wholesale

45

Central Japan
International Airport• Wholesale

Chengdu Int’l Airport andChengdu City (China)• Merchandise sales• Wholesale• Food and beverage service

1. Outline of the Company(3) Group companies (17 companies)

日本空港ビルデング

Japan Airport Terminal Co., Ltd.

Facilities management operations (6 companies)[Maintenance and management]• Japan Airport Techno Co., Ltd.
• Haneda Airport Security Co., Ltd.
• Sakura Clean Corporation[Service]• BIG WING Co., Ltd.
• Haneda Passenger Service Co., Ltd.
• Japan Airport Ground Handling Co., Ltd.

Maintenance management of airport terminal facilities(inspection, construction, cleaning, etc.)
Security service in airport terminal facilities and management of parking area
Management of garbage disposal plants
Advertising agency business and event planning management in airport terminal facilities
Passenger services (information, insurance sales, and travel agency business)
Ground handling operations at Haneda Airport (passengers, ramps, business jets)

Merchandise sales operations (7 companies)• International Trade Inc.
• Japan Airport Logitem Co., Ltd.
• Japan Airport Terminal Trading(Chengdu) Co., Ltd.
• Haneda Airport Enterprise Co., Ltd.
• Hamashin Co., Ltd.
• Japan Duty Free Fa-So-La
Mitsukoshi Isetan Co., Ltd.

• Air BIC Inc.

Retail sales and wholesale of goods to stores at domestic airports
Transportation and customs clearance services
Retail sales and wholesale of goods at Chengdu Shuangliu International Airport(Sichuan Province, China)
Operation of stores at Haneda Airport and Narita International Airport(foodstuffs, general merchandise, duty-free)
Wholesale of marine products
Development of airport duty-free stores (bonded stores) in urban areas

Retail sales of home appliances

Food and beverage operations (4 companies)• Tokyo Airport Restaurant Co., Ltd.
• Cosmo Enterprise Co., Ltd.
• CTT Inc.
• Kaikan Kaihatsu Co., Ltd.

Management of restaurants at Haneda Airport and Narita International Airport Operationof airport lounges and conference rooms at Haneda Airport
In-flight meal production for foreign airlines at Haneda Airport
and Narita International Airport
Cleaning of airline cabin items
Operation of restaurants, halls, and conference rooms• In January 2011, the Company established Japan Airport Terminal Trading (Chengdu) Co., Ltd., (capital 85 million yen, investment ratio 100.0%) as a subsidiary specializing inmerchandise sales and wholesale operations at Chengdu Shuangliu International Airport (Sichuan province, China).
• In July 2011, BIG WING Co., Ltd. merged with its consolidated subsidiary Hiro International Co., Ltd.
46
Japan Airport Terminal Co., Ltd.

1. Outline of the Company(4) Composition of the group businesses (consolidated, by segment / results for FY15)

Other 1%
(1%)
In-flight meals 3%(3%)
Restaurants 5%(5%)

Rent revenue 6%(6%)

Food andbeverage operations

9%
(9%)

Facility user charges revenue 9%(9%)
Facilities management
operations

Other 32%
(31%)

26%
(25%)

Merchandise sales operations

65%

Other 11%
(10%)

(66%)
Stores at international terminal 17%(18%)

Japan Airport Terminal Co., Ltd.

Stores at domestic terminal 16%
(17%)
47

* Figures in parenthesis are results for FY14

1. Outline of the Company(5) Revenue composition (consolidated, by segment)
Revenue details

Category
Rent revenue
Facilities
management
operations

Facility user
Fees for use of passenger facilities (domestic flights: PSFC)
charges revenue

Depreciation; water, heating, energy expenses;
repairs expenses; lease fee (such as national
property usage fee); taxes and public charges;
cleaning expenses; outsourcing fees

OthersCommissioned management fee of Haneda Airport, parking fee
revenue, advertising revenue; sales from paid waiting room (Airport
Lounge); revenue from subcontracted work

Lease fee (such as national property usage fee);taxes and public charges (fixed asset tax);
outsourcing fees

Stores atdomestic
terminal

Merchandise sales for stores at Haneda Airport

Cost of sales; supply expenses

Stores atinternationalterminal

Merchandise
sales operations

OthersFood andbeverage
operations

Office lease (fixed rent); store lease(fixed rent + percentage commission)

Expenses details

Merchandise sales for lobby stores at Haneda Airport
Merchandise sales for stores such as duty-free stores at Narita
International Airport and Kansai International Airport
Merchandise sales for duty-free stores in town
Wholesale to Haneda Airport, Narita International Airport, KansaiInternational Airport, and Central Japan International Airport
Commissioned management fee of Haneda Airport, Narita
International Airport, and Kansai International Airport

Restaurants

Restaurant sales at Haneda Airport and Narita International Airport

In-flight meals

Production and sales of in-flight meals

OthersWholesale of products such as frozen foods and box meals

Cost of sales; supply expenses; percentage ofbusiness

Cost of sales and agent service fee
Food expenses (cost of sales for food andbeverage), percentage of business
Food expenses(cost of sales for food and beverage)
Food expenses(cost of sales for food and beverage)

Factors behind changes in earnings: Environment the airline industry operates in (such as changes in the number of passengers on bothinternational and domestic flights)
Government measures, etc. (such as the government’s and regulating authority’s airport management
policy and revisions to and changes to the system of usage fees for national assets)
Changes in facility user charges (domestic flights)
Japan Airport Terminal Co., Ltd.

48

1. Outline of the Company(6) Sales by region and segment (non-consolidated)KansaiInternational
Airport6％

NaritaInternational
Airport
16％(7％)

Sale ofmerchandise
59％

Rent
revenue
11％(18％)

HanedaAirport73％(72％)

Central Japan
International Airportand others

2％

(2％)

Outsideairports

Other
revenues
16％(Duty-free stores in town,
company-held premises)

3％

(1％)
*Figures in parenthesis are results for FY14.
Japan Airport Terminal Co., Ltd.

49

Facility user
charges revenue
15％1. Outline of the Company(7) Facilities of Tokyo International Airport (investment plan)
Terminal 2
ANA, ADO, SNA, SFJ
Fixed Spots: 23

Ｐ４[Fourth Stage of the Plan]• Expansion and Renovation of
3 spots
Investment amount: ¥7.6 billion
Started operation in April 2013

[International Terminal
Dismantling Works]• Dismantling works
Investment amount: ¥0.4 billion
Completed in FY11[Construction of P4 Multi-story
Parking Lot]
• Full-scale multi-story parking lot
Started operation in August 2010

[Third Stage of the Plan]• Main building
Started operation in October 2010

[Terminal 1 Renovation Project]• Arrangements for environment,
stores, other facilities
Investment amount: ¥7.0 billion
Completed in FY10-11

Terminal 1
JAL Group, SKY, SFJ
Fixed Spots: 24
Japan Airport Terminal Co., Ltd.

50[Installation Upgrading Works]• Upgrading of the passenger boarding
bridge at Terminal 1, upgrading of
installations at Terminals 1 & 2Completed in FY10-12

2. Efforts Related to the Tokyo International Airport Re-expansion Project(1) Re-expansion project of Tokyo International Airport
Runway Construction Project
Construction started: FY06
Operation started:
October 21, 2010

Runway C

Terminal 2

Runway D

Runway B
Terminal 1

With the additional expansion,
landing slots will increase by 1.3 times[Before the re-expansion]
303 thousand slots a year (on daytime)(equivalent to 830 slots a day)

Runway A
International Passenger TerminalInternational Section
Development Project(by PFI)
Operation started: October 21, 2010

Increase of 104 thousand slots a year(or 284 slots a day)
Of which, around 60 thousand slots are forinternational flights (on daytime)[After the re-expansion] (from FY13-end)
407 thousand slots a year

Haneda Airport Dock(on daytime)(equivalent to 1,114 slots a day)* Estimated based on the materials from the Study Group meeting for slot allocation standards at Haneda Airport (July 2009)
and the Growth Strategy Council of MLIT (April 2010) from the Ministry of Land, Infrastructure, Transport and Tourism
Japan Airport Terminal Co., Ltd.

51

2. Efforts Related to the Tokyo International Airport Re-expansion Project(2) Founding and present state of the Tokyo International Air Terminal Corporation
April 21, 2006
June 1, 2006
June 20, 2006
July 7, 2006
October 21, 2010

June 2011

April 2012

July 2012

November 2012
March 2013
May 2013
March 2014
September 2014

“HKT Group,” represented the Company, was selected as the candidate
for the project
HKT Group concluded basic agreement with the Japanese government
The special purpose company, Tokyo International Air Terminal
Corporation was foundedBusiness agreement was concluded between the Tokyo International
Air Terminal Corporation and the Japanese government
Placed in operation

Revised agreement on the maintenance and management of the terminalbuilding in the international section of the Tokyo International Airport was
concluded between Tokyo International Air Terminal Corporation and theJapanese government• Partial renovation and expansion of the main terminal building• Expansion of satellite and multi-story parking• Newly-built hotel
Publicly invited bids to perform passenger terminal building and otherexpansion work
• Terminal Building (4 sections)
1. Main building
2. Main building, satellite
3. Satellite
4. Satellite• Expansion of multi-story parking (1 section)
Conclusion of subcontract agreement for expansion of passenger
terminal building and other areas• Terminal Building
1. and 2. main building and satellite: Taisei Corporation
3. and 4. satellite: Takenaka Corporation• Expansion of multi-story parking: Taisei Corporation
Expansion work started
Concluded a construction contract for expansion work of passenger
terminal buildings (hotel construction area): Taisei Corporation
Hotel construction area work startedExpanded terminal enters partial operation
Expanded terminal enters full operation

Japan Airport Terminal Co., Ltd.

52

1. Company NameTokyo International Air Terminal Corporation

2. Date Founded

June 20, 2006

3. Headquarters
Location

Haneda Airport, Ota-ku, Tokyo

4. Capital

9.0 billion yen

5. Businesses

Maintenance and management of the terminalbuilding in the international section of Tokyo
International Airport

6. Representative

Katsuji Doi, President (Former Vice Presidentof Japan Airport Terminal Co., Ltd.)

7. Composition of Shareholders
Japan Airport Terminal Co., Ltd.
Japan Airlines Corporation
ANA HOLDINGS INC.
Narita International Airport Corporation
Tokyo Electric Power Company, Inc.
SECOM Co., Ltd.
Tokyo Gas Co., Ltd.
Keihin Electric Express Railway Co., Ltd.
Tokyo Monorail Co., Ltd.
NTT Data Corporation
Development Bank of Japan Inc.
Mizuho Corporate Bank Ltd.
Bank of Tokyo-Mitsubishi UFJ Ltd.

(38.78%)(19.36%)(19.36%)(4.5%)(3.5%)(3.0%)(3.0%)(2.0%)(2.0%)(1.5%)(1.0%)(1.0%)(1.0%)

8. Corporate Philosophy
As the gateway to the nation’s capital, Tokyo, we will endeavor tocontinue providing cutting-edge terminal facilities and services tocustomers from across the world and thus contribute to thedevelopment of the international aviation network.

Note: Created by the Company based on material from the Tokyo International Air Terminal Corporation

2. Efforts Related to the Tokyo International Airport Re-expansion Project(3) Overview of the Tokyo international terminal building
Summary of facilities• Site area:

approx. 150,000 m2• Terminal building
Floor space:approx. 236,500 m2(including water supply and waste
disposal facilities)

Floors:

5 floors

Fixed spots:

18 spots

Image picture of International passenger building, etc., after expansion• Parking lot
Total floor space: approx. 86,000 m2
Floors:8 levels, 9 floors(after expansion: 8 levels, 9 floors)

Capacity:

approx. 3,000 vehicles

Japan Airport Terminal Co., Ltd.

53

Note: Created by the Company based on material from the Tokyo International
Air Terminal Corporation

3. Changes in Passenger Volume on Domestic and International Flights(Haneda and Narita)
2,000
6,526 6,495

4,000

Narita International Airport– international flight passengers (left axis)

2,470

2,577

2,675 2,631

2,768
2,587

1,200

1,155

3,151 3,151
2,886

2,971

3,086

3,105

3,230

1,000

2,930

3,082

2,677

1,600

1,400

1,342

3,397 3,356 3,418 3,416

3,207

2,945

3,000

1,530

The Great East Japan
Earthquake

4,302

New International Terminal
started operation

4,630
4,446

1,800

6,153
5,875

Expanded Terminal 2 atHaneda Airport

5,000

H1N1 influenza outbreak

4,863

5,642

Financial crisis being
triggered by the US

5,141

5,568
Terminal 2 opened at Haneda

5,416

5,933 5,880

5,854

SARS outbreak

6,000

6,265 6,270 6,330

6,315

6,180 6,196 6,163 6,229

Haneda Airport– domestic passengers (left axis)

Haneda international flight passengers(Ten thousand passengers)

7,000

9-11 Terrorist Attack in the US

Passengers using Haneda domestic flights
and Narita international flights(Ten thousand passengers)

800

2,692

795

803

Haneda Airport– international flight passengers (right axis)
0

97
87
85
85
84
81
72
'95.3 '96.3 '97.3 '98.3 '99.3 '00.3 '01.3

14

35

84

95
02.3

195

243

275

400

200

Launch of Hong Kong flights
Launch of Shanghai flights
Increase in flights to Gimpo

130

161

0

'03.3 '04.3 '05.3 '06.3 '07.3 '08.3 '09.3 '10.3 '11.3 '12.3 '13.3 '14.3 '15.3 '16.3 '17.3

Fiscal year
(Forecast)

Source:Japan Airport Terminal Co., Ltd.

Increase in flights toHong Kong

600

Expanded international terminal
enters partial operation

1,000

481

Launchof Beijing flights

The extended part of Terminal 2
started operation

2,000

Launch of Gimpo flights

International charter flights
moved to Narita

726

Created by the Company based on material from the Ministry of Land, Infrastructure, Transport andTourism and the Narita International Airport Corporation

54

Notes regarding projections
Items such as plans, targets, policies, strategies, decisions, financial
forecasts, future figures and monetary amounts in this presentation that is nothistorical data are projections of the future. These are based on
management’s projections, assumptions, evaluations, judgments, andconditions on information obtainable at the present time. Realizing these
items entail uncertainty and various risks and uncertainty.
This presentation material is not intended to solicit investments. We requests
you to make own decision regarding investments.

Contact
Japan Airport Terminal Co., Ltd., Corporate Planning Division, PR/IR Office
TEL: 03 (5757) 8030
FAX: 03 (5757) 8099
Email: ir@jat-co.com