Note: 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.

Financial Report for the Year Ended March 31, 2023 (FY2022) [J-GAAP] (Consolidated)
May 11, 2023

Company name:
Japan Airport Terminal Co., Ltd. (“the Company”)
Listed stock exchange: Tokyo, Prime Market
Code number:
9706
URL: https://www.tokyo-airport-bldg.co.jp/en/
Representative:
Nobuaki Yokota, President and COO
Contact:
Kazuhito Tanaka, Senior Managing Director TEL 03-5757-8409
Scheduled date of annual general meeting of shareholders:June 28, 2023
Scheduled date of filing securities report:
June 28, 2023
Scheduled date of commencing dividend payment:
June 29, 2023
Supplementary materials on financial results (yes/no):Yes
Holding of investors’ meeting (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, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated Business Results(%: Change from the previous period)
Net income/(loss)
Operating revenues
Operating income/(loss)
Ordinary income/(loss)
attributable to owners of
the parent

%
98.1
-

Millions of yen

FY2022
FY2021

113,050
57,057%-

Millions of yen(10,579)(41,255)(Note) Comprehensive income/loss: FY2022 ¥-15,056 million (-%)

(12,064)(43,861)%-

Millions of yen(3,901)(25,217)

FY2021 ¥-39,533 million (-%)

Net income/(loss)
per share
Yen

Diluted net income
per shareYen(41.89)(270.75)-

FY2022
FY2021%-Millions of yen%

Ordinary income tototal assets%

Operating income tooperating revenues
%

-2.6
-15.2

-2.6
-8.9

-9.4
-72.3

Return on equity(Reference) Equity in earnings/losses of affiliates: FY2022 ¥133 million

FY2021 ¥-1,611 million(2) Consolidated Financial Position
Total assets

Equity capital tototal assets

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

446,955
463,878

140,951
156,009

33.6
33.2

1,613.62
1,655.32

As of March 31, 2023
As of March 31, 2022

(Reference) Equity capital: As of March 31, 2023 ¥150,287 million

As of March 31, 2022 ¥154,170 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

16,326(9,305)(10,627)(4,926)(12,641)(9,035)90,241
97,128FY2022
FY2021
2. Dividends

Dividends per share

FY2021
FY2022
FY2023(Forecast)

AnnualTotal
dividends(annual)Dividend
payout ratio(consolidated)

Dividends on
net assets(consolidated)

Q1-EndQ2-EndQ3-EndYear-end

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

-

0.00
0.00

-

0.00
16.00

0.00
16.00

1,490

-

-

-

16.00

-

16.00

32.00

33.1

3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(%: Change from the same period of the previous year)

Operating revenues

Operating income

Net income attributableto owners of the parent

Ordinary income

Net income
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

90,300195,700

107.0
73.1

6,000
15,400-4,600
13,100

-

3,400
9,000

-

36.51
96.63

First half
Full-year

Other Information(1) Significant changes in subsidiaries during the year under review (changes in specified subsidiaries involving changes in scope of
consolidation): No(2) Changes in accounting policies, accounting estimates, and restatement of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement of revisions: None
(Note) For details, please refer to page 20 of the appendix materials “3. Consolidated Financial Statements and Notes (5) Notes
on Consolidated Financial Statements: Changes in Accounting Policies”.
(3) Number of shares outstanding (common stock)1) Number of shares outstanding at the year-end (including treasury stock):
As of March 31, 2023
93,145,400 shares
As of March 31, 2022
2) Number of treasury stock at the year-end:
As of March 31, 2023
8,983 shares
As of March 31, 2022
3) Average number of shares outstanding during the period:
Year ended March 31, 2023
93,136,561 sharesYear ended March 31, 2022
(Reference) Summary of Non-Consolidated Financial Results
Financial Results for the Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Non-Consolidated Business Results
Operating revenues
Millions of yen

FY2022
FY2021

88,21253,166

Operating income/(loss)

%
65.9
-

7,905
(5,543)

Millions of yen

9,156(4,485)

Net income/(loss) per share

Diluted net income per share

Yen

Yen

57.00
(47.09)-FY2022
FY20218,737 shares
93,136,710 shares(%: Change from the previous period)

Ordinary income/(loss)%-

Millions of yen

93,145,400 shares

Net income/(loss)

%
-

%
-

Millions of yen

5,308(4,385)(2) Non-Consolidated Financial Position
Total assets

As of March 31, 2023
As of March 31, 2022
(Reference) Equity capital:

Net assets

Equity capital tototal assets

Net assets per share

Millions of yen

Millions of yen%

Yen

306,436
296,480

143,571
139,11546.9
46.9

1,541.52
1,493.67

As of March 31, 2023

¥143,571 million

As of March 31, 2022 ¥139,115 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
The forecast of the business results reported herein was prepared based on information the Company had in its possession as of thetime this report was prepared and on certain assumptions judged to be reasonable. The Company makes no guarantee that thesefigures will be achieved. Actual results may differ significantly from forecasts due to various factors. For the assumptions used infinancial forecasts and precautionary statements regarding the use of the forecasts, please refer to page 7 of the appendix materials “1.
Analysis of Business and Financial Results (4) Forecast for FY 2023 (the fiscal year ending March 31, 2024)”.
Supplementary materials on financial results and details of presentation at investors’ meeting
Investors’ meeting is planned to be held on May 18, 2023 for financial analysts. Presentation materials used in the investors’
meeting 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, 2023 (FY2022)

Contents of the Appendix Materials
1.

ANALYSIS OF BUSINESS AND FINANCIAL RESULTS ..................................................................... - 2 -(1) ANALYSIS OF CONSOLIDATED BUSINESS RESULTS FOR FY 2022 ............................................................. - 2 (2) ANALYSIS OF CONSOLIDATED FINANCIAL POSITION FOR FY 2022........................................................... - 6 (3) ANALYSIS OF CONSOLIDATED CASH FLOWS FOR FY 2022 ....................................................................... - 6 (4) FORECAST FOR FY 2023 (THE FISCAL YEAR ENDING MARCH 31, 2024) ................................................... - 7 (5) BASIC POLICY ON DISTRIBUTION OF PROFITS AND DIVIDEND PAYMENT FOR FY2022/FY2023............... - 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 OFCOMPREHENSIVE 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 (Changes in Accounting Policies) ............................................................................................................... - 20 (Notes on Consolidated Balance Sheets) ..................................................................................................... - 21 (Notes on Consolidated Statements of Income) ............................................................................................ - 24 (Notes on Consolidated Statements of Cash Flows) ..................................................................................... - 24 (Segment Information) .............................................................................................................................. - 25 (Per Share Information) ............................................................................................................................ - 27 (Significant Subsequent Events) ................................................................................................................. - 27 --1-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)

1. Analysis of Business and Financial Results(1) Analysis of Consolidated Business Results for FY 2022
During the fiscal year ended March 31, 2023 (FY2022), although there are signs of weakness in someparts, the Japanese economy showed a gradual recovery. Looking ahead, it is expected that the recovery trend
will continue, resulting from the effects of various policies, while coexisting with the new Coronavirus(“COVID-19”) infection. However, the downturn in overseas economies is becoming downside risks to theJapanese economy amid various issues including the continued tightening of monetary policy around the globe.
It is also necessary to pay close attention to the impact of price increases, restrictions on supply chain
networks, volatility in the financial and capital markets among other factors.
Under these economic conditions, the airline industry continued to see a steady recovery in demand dueto the lifting of restrictions on activities within the country and the gradual easing of entry restrictions. During
the current fiscal year, the number of passengers at Haneda Airport was approximately 1.8 times that of theprevious fiscal year for domestic flights and approximately 80% of the level of 2019 (calendar year basis)
before the impact of COVID-19 hit, while the number of passengers for international flights wereapproximately 8 times that of the previous fiscal year and approximately 40% of the level of 2019. In
particular, international flights during the fourth quarter of the current fiscal year were approximately 70% of
the level from January to March 2019, showing a rapid recovery since the significant easing of entry
restrictions in October 2022.
Under these circumstances, the new Medium-Term Business Plan that the JAT Group has put together is abackcast by 2025 that reflects our goals for 2030, which is when the government is setting targets including
achieving 60 million foreign visitors to Japan. We are implementing various measures to achieve themanagement goals outlined in the plan. In addition, with respect to sustainability, which is regarded as the core
to driving our strategy, we established the structure to accelerate our initiatives in July 2022, and today, May
11, 2023, we announced our Medium-Term Sustainability Plan. We have identified materiality (important
issues) in the promotion of our management strategy and set KPIs (Key Performance Indicators) to enhancethe effectiveness of our sustainability management efforts, aiming to achieve sustainable growth of ourcompany, and to contribute to the realization of a sustainable society.
During the current fiscal year, in terms of facilities, in addition to taking measures to respond to diverse
needs including the installation of private work boxes suitable for working outside the office in the security
area of each terminal and the introduction of accompanying service at domestic flights, we are carrying out
renovation work in preparation for major disasters and steadily implementing measures to promote universal
design such as the installation of emergency flashlights for the hearing impaired. We also cooperated with therequest from the Ministry of Economy, Trade and Industry to save power, by turning off some of the lights andcontrolling air conditioning operation in the terminal buildings during summer and winter, when electricity
supply and demand were tight. In addition, we are steadily pushing forward investment plans for the future bycommencing the construction of connection between the satellite building on the north side of Terminal 2 andthe main terminal building while working toward the realization of a carbon-neutral society by studying theconversion of airport vehicles to electric vehicles and researching the potential demand for hydrogen fuel.
In terms of sales, on domestic flights, we opened “GOOD NEWS TOKYO” in Terminal 2 and renewed“Samantha Thavasa” in Terminal 1. Both stores offer upcycled products. We actively held events such as the“Haneda Airport Selection”, which features various products including those exclusive to Haneda Airport,“HANEDA CHOCOLATE JOURNEY” and product and tourism fairs of various regions in Japan. We also
opened a limited-time store in “HANEDA Sports” to coincide with the World Cup for soccer and the World
Baseball Classic for baseball. At international flights, in response to the recovery in demand, we reopened the
duty-free shops and have been changing the operating hours of the shops as needed. We are also in the processof rearranging our shops, including the opening of Louis Vuitton and Dior duty-free shops and a Seven-Elevenin the departure gate lounge after passing through security checkpoints. In the e-commerce business, weenhanced the functionality of the official e-commerce site “HANEDA Shopping” to improve its recognition
and we are promoting “Click and Collect” initiatives that link the e-commerce site with brick-and-mortar
stores by allowing customers to pick up items ordered through our e-commerce site at the stores in Haneda
Airport.
Outside of Haneda Airport, we opened the “HOKKAIDO SHOKUHIN KAN” selling foods produced in
Hokkaido at Narita Airport Terminal 1. As a sales agency business that leverages our installation experienceand operational expertise at Haneda Airport, we are also increasing the installation of Radi-Cool, a radiantcooling material, and robots for operations including guiding and cleaning. Moreover, Palau International
Airport and Aso Kumamoto International Airport, both of which we participate in the operation of,commenced operations of their new passenger terminals in May last year and March this year, respectively.
In terms of organization and governance, in June of last year, the Company transitioned to a company
with an Audit and Supervisory Committee and designated one-third of the Board of Directors as independent
directors, as part of an effort to improve management transparency and further accelerate decision-making andexecution. We are also striving to strengthen our organizational capabilities in terms of recruitment, training,-2-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)

and system, by participating in industry-industry and industry-academia collaboration projects, expanding therecruitment of people with disabilities and setting up their work environment, in an aim to have talents who“Think by oneself and take on challenges” excel and to foster a corporate culture in which diverse workforce
promote each other’s growth.
In November 2022, we were awarded the world’s highest standard “5-star Airport” rating for the ninth
consecutive year in the “Global Airport Rating” conducted by SKYTRAX of the United Kingdom throughonsite audits. In March of this year, Haneda Airport was ranked third in the “World’s Best Airports”, acomprehensive evaluation of international airports, in the “WORLD AIRPORT AWARDS 2023”, determinedby voting through online questionnaire survey for general passengers. Furthermore, we were awarded firstplace in the “World’s Cleanest Airports” (for the eighth consecutive year), “World’s Best Domestic Airports” (forthe eleventh consecutive year), and “World’s Best PRM / Accessible Facilities” (for the fifth consecutive year).
As a result of the above, with respect to the consolidated financial results for the fiscal year ended March
31, 2023, operating revenues was ¥113,050 million (an increase of 98.1% year-on-year) due to the increase inoperating revenues for all of the business segments compared to the previous year in line with the recovery ofpassenger volume. Despite the increase in utilities costs due to the increase in commodity prices, as a result of therecovery in revenue and sustained cost reduction, the degree of loss decreased from the previous fiscal year andoperating loss was ¥10,579 million (compared to operating loss of ¥41,255 million during the previous year),ordinary loss was ¥12,064 million (compared to ordinary loss of ¥43,861 million during the previous year), andnet loss attributable to owners of the parent was ¥3,901 million (compared to net loss attributable to owners of
the parent of ¥25,217 million during the previous year).
(Millions of yen)

Operating Results

FY2021(from April 1, 2021 toMarch 31, 2022)

Operating revenues[Facilities Management][Merchandise Sales][Food and Beverage]
Operating income / (loss)
Ordinary income / (loss)
Net income/(loss) attributable toowners of the parent

FY2022(from April 1, 2022 toMarch 31, 2023)

Year-on-Year(%)

57,05740,02913,174
3,852(41,255)(43,861)

113,050
63,28041,317
8,452(10,579)(12,064)

98.1
58.1
213.6
119.4
-

(25,217)(3,901)-At the moment, the number of passengers at Haneda Airport continues to show a recovery trend. For
domestic flights, we are expecting the nationwide travel program, which will still be in place from April
onward, to support tourism travel demand. For international flights, the number of flights has recovered to thelevel before the pandemic since the summer timetable which started at the end of March. Further recovery indemand is expected down the road, as the status of COVID-19 under the Infectious Disease Control Law waschanged to “Class 5” in May, the same category as seasonal influenza and other viruses.
Under these circumstances, the airline industry as a whole is currently facing a major shortage in labor,
including in its ground handling operations and flight security inspection operations that support operations offlights. The JAT Group is actively working in cooperation with the government, airline companies, and otherorganizations to resolve this issue. The JAT Group is also working to secure the necessary personnel to meet
rapidly recovering passenger demand by holding joint company information sessions and stepping up
recruitment activities.
The JAT Group will work to enhance the value of Haneda Airport, the gateway to Japan and the greater
Tokyo area, by further improving the convenience, comfort, and functionality of the Haneda Airport Passenger
Terminal as well as by ensuring the safe and smooth entry, exit, and transportation of all customers while
continuing to apply the lessons learned from the COVID-19 pandemic to our terminal operations.

-3-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)

Overview by Segment
The following is a breakdown of earnings / (loss) by segment. Note that the figures for operating revenuesof each segment include intersegment sales and the figures for operating income / (loss) are equivalent to thosefor segment income / (loss).
[Facilities Management](Millions of yen)

Operating Results

FY2021(from April 1, 2021 toMarch 31, 2022)

Sales to external customers
Rent revenue
Facility user charges revenue
Other revenues
Intersegment sales and transfers
Total of Operating Revenues
Segment income / (loss)

40,02918,543
10,53910,946
1,982
42,012(24,863)

FY2022(from April 1, 2022 toMarch 31, 2023)

Year-on-Year(%)

63,28019,852
29,325
14,102
2,391
65,672(3,133)

58.1
7.1
178.2
28.8
20.6
56.3
-

Rent revenue increased from the previous year primarily due to the decrease in rent reductions andexemptions offered to tenants and increase in rent income on a percentage basis.
Revenue from facility user charges increased from the previous year primarily due to the increase in thepassenger service facility charge driven by the recovery in passenger volume and the revision of charges.
Other revenues increased from the previous year primarily due to the increase in parking revenue and paidlounge sales despite the decrease in contracted construction revenue.
As a result, operating revenues from facilities management operations was ¥65,672 million (an increase of
56.3% year-on-year). Operating loss for the segment improved to ¥3,133 million (compared to operating lossof ¥24,863 million during the previous year).
[Merchandise Sales](Millions of yen)

Operating Results

FY2021(from April 1, 2021 toMarch 31, 2022)

Sales to external customers
Sales at domestic terminal stores
Sales at international terminal
storesOther revenues
Intersegment sales and transfers
Total of Operating Revenues
Segment income / (loss)

FY2022(from April 1, 2022 toMarch 31, 2023)

Year-on-Year(%)

13,174
5,166

41,317
10,372

213.6
100.8

4,242

19,476

359.1

3,765
769
13,944(6,134)

11,469892
42,210
1,640

204.6
16.1
202.7
-

Sales at domestic terminal stores increased from the previous year because of the recovery in domestic
passenger volume.
Sales at international terminal stores increased from the previous year due to the increase in international
passenger volume at Haneda Airport, Narita Airport and other airports. At Haneda Airport in particular, unit
purchase prices at duty-free shops rose significantly, due in part to strong sales at brand-name stores that
opened in the second half of the year.
Other revenues increased from the previous year because of the increase in revenue for the wholesaling
business.
As a result, operating revenues from merchandise sales operations was ¥42,210 million (an increase of
202.7% year-on-year) and operating income for the segment was ¥1,640 million (compared to operating lossof ¥6,134 million during the previous year).

-4-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)[Food and Beverage](Millions of yen)

Operating Results

FY2021(from April 1, 2021 toMarch 31, 2022)

Sales to external customers
Sales from food and beverage
storesSales from in-flight meals
Other revenues
Intersegment sales and transfers
Total of Operating Revenues
Segment income / (loss)

FY2022(from April 1, 2022 toMarch 31, 2023)

Year-on-Year
(%)

3,852

8,452

119.4

2,790

5,489

96.7

730
332
796
4,649
(3,091)

2,487
475
953
9,405
(1,365)

240.7
43.1
19.7
102.3
-

Sales from food and beverage operations increased from the previous year primarily due to the recovery
in domestic passenger volume.
Sales from in-flight meals increased from the previous year due to the increase in passenger volume of theforeign carriers at Haneda Airport and Narita Airport.
As a result, operating revenues from food and beverage operations was ¥9,405 million (an increase of
102.3% year-on-year) and operating loss for the segment was ¥1,365 million (compared to operating loss of¥3,091 million during the previous year).

-5-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(2) Analysis of Consolidated Financial Position for FY 2022
[Assets]
Current assets increased by ¥1,119 million from the previous fiscal year end to ¥114,988 million primarily
due to the increase in accounts receivable related to passenger service facility charge among other items driven
by the recovery in passenger volume. Fixed assets decreased by ¥18,042 million from the previous fiscal year
end to ¥331,967 million primarily due to depreciation.
As a result, total assets decreased by ¥16,923 million from the previous fiscal year end to ¥446,955
million.
[Liabilities]
Total liabilities decreased by ¥1,865 million from the previous fiscal year end to ¥306,004 million becauseof the decrease of long-term loans payable for the Company and Tokyo International Air Terminal Corporation(TIAT) due to scheduled payment despite the increase in accounts payable driven by the increase in purchasesof goods.
[Net assets]
Total net assets decreased by ¥15,058 million from the previous fiscal year end to ¥140,951 million. Thisis primarily due to the decrease in retained earnings and non-controlling interests by booking net loss for theyear.
As a result, the equity ratio was 33.6% (compared to 33.2% at the previous fiscal year end).
(3) Analysis of Consolidated Cash Flows for FY 2022
Cash and cash equivalents at the end of FY2022 decreased by ¥6,887 million compared to the previous
fiscal year end to ¥90,241 million.
The following is a summary of cash flows and the factors behind these flows for FY2022.
[Cash flows from operating activities]
Cash flows from operating activities increased by ¥25,631 million from the previous fiscal year (¥9,305
million cash outflow for the previous fiscal year), resulting in a cash inflow of ¥16,326 million.
This was primarily due to the decrease in loss before income taxes and non-controlling interests.
[Cash flows from investing activities]
With respect to cash flows from investing activities, cash outflow increased by ¥5,701 million from theprevious fiscal year (up 115.7% year-on-year), resulting in a cash outflow of ¥10,627 million.
This was primarily due to the expenditures for the acquisition of tangible fixed assets.
[Cash flows from financing activities]
With respect to cash flows from financing activities, cash outflow increased by ¥3,605 million from theprevious fiscal year (up 39.9% year-on-year), resulting in a cash outflow of ¥12,641 million.
This was primarily due to cash outflow from the payment of long-term loans payable.

-6-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(4) Forecast for FY 2023 (the fiscal year ending March 31, 2024)
In the next fiscal year, as social and economic activities return to the state before the COVID-19
pandemic, further recovery in demand is expected in the airline industry for both domestic and international
flights.
At Haneda Airport, domestic flights are also expected to recover to a level close to that of 2019 before thepandemic, driven by tourism demand. In addition, demand for international flights is expected to recoverrapidly, especially among foreign visitors to Japan, including visitors from China, due to the lifting of the entry
restriction measures, and international flight is expected to recover to nearly the same level as in 2019 for thefull year.
Under this environment, in order to capture the recovering passenger demand, the Company will extend
store operating hours, develop direct from production source business in cooperation with local regions, andfurther strengthen its e-commerce business. At the same time, the Company will continue its efforts to avoid
the costs to rebound in light of rising raw material, utilities, and logistics costs driven by surging commodity
prices, as well as increase in labor and other costs. In addition, discussions are underway among thegovernment, airlines, and other related parties to reopen the Terminal 2 international facilities, that weresuspended due to the pandemic, as soon as possible. Meanwhile, with an eye to accommodating future
passenger growth and further improving passenger convenience, we plan to steadily push forward theconstruction of the connection between the Terminal 2 main building and the satellite building, and commence
work on the new Terminal 1 North Satellite building.
The expected earnings by segment are as follows.
For the Facility Management business, operating revenue is expected to significantly exceed the previous
year primarily due to an increase in revenue from facility user charges driven by the recovery in passenger
volume. For the Merchandise Sales business and the Food and Beverage business, operating revenue is
expected to significantly exceed the previous year, due to an increase in merchandise sales and food andbeverage sales resulting mainly from a recovery in the number of passengers on domestic flights andinternational flights at Haneda Airport.
For FY2023, we forecast operating revenue of ¥195,700 million (up 73.1% year-on-year). On the profit
and loss, we forecast operating income of ¥15,400 million (compared to operating loss of ¥10,579 million
during FY2022), ordinary income of ¥13,100 million (compared to ordinary loss of ¥12,064 million during
FY2022), and net income attributable to owners of the parent of ¥9,000 million (compared to net loss attributableto owners of the parent of ¥3,901 million during FY2022), a return to profitability for the first time in four
years.
(5) Basic Policy on Distribution of Profits and Dividend Payment for FY2022/FY2023
We consider the return of profits to our shareholders to be one of our most important management
priorities. Our basic policy is to work on management with a more proactive stance, strive to improve ourbusiness performance, secure internal reserves in consideration of large-scale investments such as the renewalof passenger terminal building facilities in line with the functional expansion of Haneda Airport, and at thesame time, maintain stable dividend payments. In order to actively return profits to shareholders in accordancewith our business performance, we have set a dividend payout ratio of 30% or more as a target figure in our
Medium-Term Business plan.
Our business performance has been severely impacted by COVID-19, but we have maintained our basic
policy and have strived to return to profitability as soon as possible.
Although we decided to postpone the announcement of the year-end dividend for FY2022 at the time of
the announcement of the financial results for the fiscal year ended March 31, 2022, after a comprehensive
review based on the current business environment and the dividend distribution policy mentioned above, wehave decided to pay a dividend of ¥16 per share. This matter will be submitted to the 79th Ordinary General
Meeting of Shareholders to be held on June 28, 2023.
As a result, the annual dividend for the current fiscal year will be ¥16 per share, as no interim dividend
was paid. For the next fiscal year, we have set the dividend at ¥32 per share (¥16 for interim and ¥16 foryear-end) with a payout ratio of 33.1%, taking into consideration the above dividend policy, earnings outlook,and other factors.

2.

Basic Approach on Selection of Accounting Standards
To secure comparability between companies and between fiscal years, the JAT Group prepares its
consolidated financial statements in accordance with the Ordinance on Terminology, Forms and Preparation
Methods of Consolidated Financial Statements (Finance Ministry Ordinance No. 28 of 1976), excluding Chapter
7 and Chapter 8.
The JAT 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, 2023 (FY2022)

3. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets(Millions of yen)

ASSETS
Current assets
Cash and deposits
Accounts receivable
Securities
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-

FY2021(As of March 31, 2022)

FY2022(As of March 31, 2023)

57,1285,408
40,000
5,364
271
5,756
(60)
113,868

63,741
15,331
26,500
4,283
323
4,865
(57)
114,988560,906(323,206)
237,700
36,022(20,325)
15,696
12,874
3,533(1,591)
1,941
1,467
67,977(57,711)
10,265279,945562,619(343,917)
218,701
34,822(21,227)
13,595
12,876
3,574(2,049)1,525
8,996
70,653(60,234)
10,418266,11431,516
2,872
34,38829,671
2,139
31,81018,293
12,8771,013
3,491
35,676350,010
463,878

17,254
12,232
1,105
3,450
34,042331,967
446,955

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(Millions of yen)

LIABILITIESCurrent liabilities
Accounts payable
Short-term loans payable
Accrued expenses
Income taxes payable
Allowance for employees’ bonuses
Other current liabilities
Total current liabilities
Fixed liabilities
Bonds
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-

FY2021(As of March 31, 2022)

FY2022(As of March 31, 2023)

1,956
15,626
8,782
483
1,073
8,925
36,847

7,172
15,70912,1502,192
1,627
10,27349,12555,287
184,153
1,596
15,660
68
4,761
620
8,873
271,021
307,869

55,139171,815
1,173
16,319
57
4,562
628
7,183
256,878
306,004

38,12654,16060,843(9)
153,120

38,12654,16056,942(10)
149,217

2,526

1,695

(1,115)
66
(426)
1,050
1,838
156,009463,878

(726)
122
(22)
1,069
(9,335)140,951446,955

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)

FY2021(from April 1, 2021
to March 31, 2022)
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
Expenses for retirement benefits
Rent expenses
Outsourcing and commission
Depreciation expenses
Other costs and expenses
Total selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Contributions in aid of construction
Subsidy income
Fee and commission income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Share issuance costs
Fee and commission expenses
Loss on retirement of fixed assets
Equity in losses of affiliates
Miscellaneous expenses
Total non-operating expenses
Ordinary income (loss)- 10 -FY2022(from April 1, 2022
to March 31, 2023)

18,543
10,541
10,98913,155
3,827
57,057

19,82929,327
14,394
41,143
8,355
113,050

7,635
2,968
10,60446,45323,927
5,158
29,08583,964

10,201
583
921
8,762
11,33831,71524,18687,709(41,255)

10,776
1,548
812
8,555
14,18928,95429,707
94,543(10,579)

23
62
94
2,707
225
552
3,665

21
64
133
268
658
251
535
1,933

2,744
1
1,510
310
1,611
92
6,271
(43,861)

2,991
102
276
49
3,419
(12,064)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(Millions of yen)

FY2021(from April 1, 2021
to March 31, 2022)
Extraordinary gains
National subsidies
Gains on sale of investment securities
Total extraordinary gains
Extraordinary loss
Impairment loss
Loss on valuation of investment securities
Loss on reduction entry of fixed assets
Total extraordinary loss
Income (loss) before income taxes and non-controllinginterests
Income taxes – current
Income taxes – deferred
Total income taxes
Net income (loss) before non-controlling interests
Net income (loss) attributable to non-controlling interests
Net income (loss) attributable to owners of the parent- 11 -FY2022(from April 1, 2022
to March 31, 2023)

1,422
321
1,744

58
20
78

52
1,388
1,441

260
99
36
397

(43,558)(12,383)

7(1,947)(1,939)(41,618)(16,401)(25,217)

1,743
1,561
3,304
(15,687)(11,786)(3,901)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income (loss) 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 -FY2021(from April 1, 2021
to March 31, 2022)(41,618)

FY2022(from April 1, 2022
to March 31, 2023)(15,687)

669
1,413
46
(47)

(828)
949
56
439

2

15

2,084
(39,533)631(15,056)(23,797)(3,882)(15,736)(11,174)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(3) Consolidated Statements of Changes in Shareholders’ Equity
FY2021 (from April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ equity

Balance at the beginning of current period

Common stock

Capital surplus

38,12654,160Retainedearnings

Treasury stock

86,060(8)

Total
shareholders’equity178,338

Changes during current period
Dividend from retained earnings
Net income (loss) attributable to ownersof the parent
Purchase of treasury stock(25,217)(25,217)(0)(0)

Changes in ownership interest in subsidiaries

(0)
(0)

Changes of items other than shareholders’equity during current period (net)-Total changes during current period-(0)(25,217)(0)(25,217)

Balance at the end of current period

38,12654,16060,843(9)

153,120

Accumulated other comprehensive income
Deferred gains
or losses onhedges

1,855(1,836)

671

720

46

(18)

1,420

Total changes during current period

671

720

46

(18)

1,420

Balance at the end of current period

2,526(1,115)

66

(426)

1,050

Balance at the beginning of current period

Foreigncurrencytranslation
adjustment

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income
19
(408)
(369)

Valuationdifference on
available-for-salesecurities

Changes during current period
Dividend from retained earnings
Net income (loss) attributable to ownersof the parent
Purchase of treasury stock
Changes in ownership interest in subsidiaries

Changes of items other than shareholders’equity during current period (net)

Balance at the beginning of current period

Non-controllinginterests
17,575

Total net assets
195,544

Changes during current period
Dividend from retained earnings
Net income (loss) attributable to ownersof the parent
Purchase of treasury stock(25,217)

Changes in ownership interest in subsidiaries(0)

Changes of items other than shareholders’equity during current period (net)-(0)(15,736)(14,316)

Total changes during current period(15,736)(39,534)

Balance at the end of current period

1,838

156,009- 13 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)

FY2022 (from April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ equity

Balance at the beginning of current period

Common stock

Capital surplus

38,12654,160Retainedearnings

Treasury stock

60,843(9)

Total
shareholders’equity153,120

Changes during current period
Dividend from retained earnings
Net income (loss) attributable to ownersof the parent
Purchase of treasury stock(3,901)(3,901)(1)(1)

Changes in ownership interest in subsidiaries-

Changes of items other than shareholders’equity during current period (net)-Total changes during current period--(3,901)(1)(3,902)

Balance at the end of current period

38,12654,16056,942(10)

149,217

Accumulated other comprehensive income
Deferred gains
or losses onhedges2,526(1,115)

(830)

388

56

403

18

Total changes during current period

(830)

388

56

403

18

Balance at the end of current period

1,695

(726)

122

(22)

1,069

Balance at the beginning of current period

Foreigncurrencytranslation
adjustment

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income
66
(426)
1,050

Valuationdifference on
available-for-salesecurities

Changes during current period
Dividend from retained earnings
Net income (loss) attributable to ownersof the parent
Purchase of treasury stock
Changes in ownership interest in subsidiaries

Changes of items other than shareholders’equity during current period (net)

Balance at the beginning of current period

Non-controllinginterests
1,838

Total net assets
156,009

Changes during current period
Dividend from retained earnings
Net income (loss) attributable to ownersof the parent
Purchase of treasury stock(3,901)

Changes in ownership interest in subsidiaries-

Changes of items other than shareholders’equity during current period (net)-(1)(11,174)(11,155)

Total changes during current period(11,174)(15,058)

Balance at the end of current period(9,335)140,951- 14 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(4) Consolidated Statements of Cash Flows(Millions of yen)

FY2021(from April 1, 2021
to March 31, 2022)
Cash flows from operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowance for employees’ bonuses
Increase (decrease) in net defined benefit liabilities
Decrease (increase) in net defined benefit assets
Interest and dividends income
Subsidy income
Interest expenses
Fee and commission expenses
Loss on retirement of tangible fixed assets
Equity in losses (earnings) of affiliates
National subsidy
Loss (gain) on sales of investment securities
Impairment loss
Loss (gain) on valuation of investment securities
Loss on reduction of fixed assets
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
Subsidy received
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of investment securities
Purchase of tangible fixed assets
Proceeds from sales of investment securities
Purchase of intangible fixed assets
Payments of long-term loans receivable
Proceeds from national subsidy
Other payments
Other proceeds
Net cash provided by (used in) investing activities- 15 -FY2022(from April 1, 2022
to March 31, 2023)(43,558)
31,794
(102)
272
(6)
(85)
(2,707)
2,744
1,510
310
1,611
(1,422)
(321)
52
1,388
(135)
4,272
1,440
681
(7,539)(32)(178)(10,010)73(2,859)2,707
783(9,305)(12,383)
29,022
553
327
(46)
(85)
(658)
2,991
102
276
(133)
(58)
(20)
260
99
36
(9,922)
1,029
911
5,215
1,169
12
(218)
18,480123(2,923)655(9)16,326(1,044)(5,138)
345
(317)
(50)
1,422
(278)
134
(4,926)(500)(9,857)
324
(378)
(60)
58
(286)
72
(10,627)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(Millions of yen)

FY2021(from April 1, 2021
to March 31, 2022)
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 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 -FY2022(from April 1, 2022
to March 31, 2023)(100)
20,790(13,856)450(15,000)
(511)
(807)
(9,035)(100)883(12,826)
(494)
(0)
(103)
(12,641)40

55(23,226)
120,355
97,128(6,887)
97,12890,241

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(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: 19 companies
Names of consolidated subsidiaries
Tokyo Airport Restaurant Co., Ltd.
Japan Duty Free Fa-So-La Isetan Mitsukoshi Co., Ltd
Haneda Future Research Institute Inc.
Cosmo Enterprise Co., Ltd.
International Trade Inc.
Japan Airport Logitem Co., Ltd.
BIG WING Co., Ltd.
Japan Airport Techno Co., Ltd.
Tokyo International Air Terminal Corp.
Air BIC Inc.
Haneda Airport Enterprise Co., Ltd.
Haneda Airport Security Co., Ltd.
Haneda Passenger Service Co., Ltd.
Japan Airport Terminal Trading (Chengdu) Co., Ltd.
LANI KE AKUA PACIFIC, INC.
Sakura Co., Ltd.
Hamashin Co., Ltd.
Japan Airport Ground Handling Co., Ltd.
Kaikan Development Co., Ltd.
2) Number of Non-consolidated subsidiaries: 5 companies
Names of Non-consolidated subsidiaries
GLOBAL SERVICE CO., LTD.
Tsukizi Hamashin Co., Ltd.
Felix International LLC.
JAT DESIGN INTERNATIONAL INC.
Rock Island Tour Company, Ltd.
The five 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 companies that are accounted for using the equity method: 3 companies
Names of affiliated companies that are accounted for using the equity method
AGP Corporation
Japan Airport Delica Inc.
Airport Transport Service Co., Ltd.
2) The non-consolidated subsidiaries and Seikousha Inc. and ten 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.
In preparing the consolidated financial statements, the financial statements as of the abovementioned closing date
are used and necessary adjustments arising from important transactions during the period between the closing
date and the consolidated closing date are made.

- 17 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)

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 other than shares without fair values are stated at fair value based on the market value at the
year-end, with valuation differences included in net assets. Cost of securities sold is determined by the moving
average method.
Shares without fair values are stated at cost based on moving average method.
For investments in limited liability investment partnerships and similar partnerships (deemed as securities
under Article 2, Paragraph 2 of the Financial Instruments and Exchange Act), the most recent financial
statements available according to the financial reporting date stipulated in the partnership agreement areused as the basis for calculating the net amount equivalent to the Company’s interest.
(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.
As bonuses to directors for FY2022 are not paid, no allowance for bonuses to directors is recorded for
FY2022.
(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
In calculating the retirement benefit obligation, 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).
- 18 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)

Actuarial gains and losses are amortized, beginning in the year following their occurrence, under thestraight-line method over a certain number of years within the average remaining 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
retirement benefits.
5) Recognition of significant revenues and costs
The JAT Group is engaged in three business operations which are the facilities management operations,merchandise sales operations, and food and beverage operations.
The major obligations to be performed and the usual timing at which an entity satisfies such obligations in eachof the business operations are as follows.
For transactions in which the JAT Group’s role in providing goods or services to customers falls under the
category of agent, revenue is recognized as the net amount, the amount received from customers less theamount paid to suppliers.
(A) Facilities management
The facilities management operations are mainly engaged in construction, management and operation ofpassenger terminals and leasing of real estates. Rent revenue consists mainly of office and store rent income,and is recognized in accordance with the “Accounting Standard for Lease Transactions” (ASBJ Statement
No. 13, March 30, 2007) and relevant revised ASBJ regulations.
Facility user charges revenues mainly consist of passenger service facility charge revenues, which arecollected from passengers in accordance with the term of use of passenger service facilities, and the JATGroup is obligated to use such revenues to cover expenses related to facilities for the common use ofpassengers and to properly manage and operate the passenger terminals. The performance obligation issatisfied upon completion of the passenger air transportation services provided by the air carrier, and revenue
is recognized upon completion of the passenger air transportation services.
Other revenues consist mainly of parking revenues, paid lounge sales, and advertising revenues. The
performance obligation is satisfied upon completion of the services such as provision of parking services,
provision of lounge access services, and placement of advertisement. If the performance obligation issatisfied at a point in time, revenue is recognized at the time the services are provided. If the performanceobligation is satisfied over a certain period of time, revenue is recognized on a straight-line basis over theperiod the service is provided.
(B) Merchandise sales
The merchandise sales operations are mainly engaged in the operation of merchandise stores and wholesale.
The performance obligation is satisfied when goods are delivered to customers for domestic flights andinternational flights, and revenue is recognized when such goods are delivered.
Other revenues consist mainly of wholesale revenues to other airports. The performance obligation issatisfied when the goods are received by the customer and revenue is recognized when the goods arereceived by the customer.
(C) Food and beverage
The food and beverage operations are mainly engaged in the operation of restaurants, and the production andsale of in-flight meals.
For food and beverage revenues, the performance obligation is satisfied by providing food and beverage
services to customers, and revenue is recognized when food and beverage services are provided tocustomers.
In-flight meal revenues consist mainly of sales of in-flight meals to international airlines. The performanceobligation is satisfied when products ordered by international airlines are delivered, and revenue isrecognized when such products are delivered.
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- 19 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(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.
Hedge relationships to which “Treatment of hedge accounting for financial instruments that reference
LIBOR” is applied
Of the above hedge relationships, all of those included in the scope of application of “Treatment of hedge
accounting for financial instruments that reference LIBOR” (ASBJ PITF No. 40, March 17, 2022), thespecial treatment prescribed in the PITF is applied. The details of hedging relationships to which the PITF isapplied are as follows.
Hedge accounting applied ----- Deferral method
Hedging instrument ------------- Interest rate swap
Hedged item ---------------------- Floating rate borrowings
Category of hedge transaction-- To fix cash flow
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 withbanks that are withdrawable on demand, and short-term investments which are easily convertible to cash withinsignificant risk of fluctuation in values whose maturity will come within three months from the date ofacquisition.
8) Capitalization of borrowing costs
At certain consolidated subsidiaries, interest costs and related expenses on borrowings during construction periodof passenger terminals and other facilities are included in the acquisition cost (¥4,517 million for accumulated
amount as of March 31, 2023) and recorded as fixed asset.
(Changes in Accounting Policies)
Adoption of Accounting Standard for Fair Value Measurement
The Company has adopted the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, June 17, 2021, hereinafter referred to as the “Implementation Guidanceon Accounting Standard for Fair Value Measurement”) from the beginning of the first quarter of the fiscal year
ended March 31, 2023. The Company has also decided to adopt the new accounting policy stipulated in the
Implementation Guidance on Accounting Standard for Fair Value Measurement in accordance with thetransitional treatment described in Paragraph 27-2 of the Implementation Guidance on Accounting Standard for
Fair Value Measurement. There is no impact of this change on the consolidated financial statements.

- 20 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(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)

Cash and deposits
Accounts receivable
Buildings and structures
Machinery, equipment and vehicles
Land
SoftwareInvestment securities (Note 1)
Other investments
Total

FY2021(As of March 31, 2022)
37,495
14
113,556
9,691
53
309
4,576
1,000
166,699

FY2022(As of March 31, 2023)
35,118
39
104,748
434
53
4,641
1,000
146,036(Note 1) Pledged as collateral for borrowings by affiliated companies and investee companies.
(Note 2) In addition to the above, investment securities (¥8,520 million), shares of subsidiaries and affiliates (¥13,530 million), long-term loans
receivable (¥8,510 million) and accounts receivable (¥41 million), which are offset and eliminated through consolidation adjustmentsin the fiscal year ended March 31, 2023, are pledged as collateral.

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

Short-term loans payable
Long-term loans payable
Total

FY2021(As of March 31, 2022)
200
119,297
119,497

FY2022(As of March 31, 2023)
100
110,909
111,009

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

Investment securities (shares)
Investment securities (capital)

FY2021(As of March 31, 2022)
5,853
481

FY2022(As of March 31, 2023)
4,678
984

3. Liabilities guaranteed
The Company provides a guarantee (including commitment) to the following group companies for their borrowing fromfinancial institutions.
(1) Debt guarantee(Millions of yen)Japan Airport Delica Inc.
Airport Transport Service Co., Ltd. (Note)
Total

FY2021(As of March 31, 2022)
225
225

FY2022(As of March 31, 2023)
225
225(Note) Liability booked in relation to the application of equity method is deducted from the amount guaranteed(2) Commitment to guarantee(Millions of yen)

Haneda Future Tokutei Mokuteki Kaisha

FY2021(As of March 31, 2022)
666- 21 -FY2022(As of March 31, 2023)
666

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)

4. Amount of reduction entry
Due to receipt of national subsidy, etc., reduction entry of the following amount is deducted from the acquisition costs oftangible fixed assets.
(Millions of yen)

FY2021(As of March 31, 2022)

FY2022(As of March 31, 2023)

386
6,382
48

386
6,382
84

110
6,927

110
6,963

Tangible fixed assets
Buildings and structures
Machinery, equipment and vehicles
OthersIntangible fixed assets
OthersTotal

5. The amounts of accounts receivable arising from contracts with customers are as follows.
(Millions of yen)Accounts receivable

FY2021(As of March 31, 2022)
5,060

FY2022(As of March 31, 2023)
13,265

6.Notes to contractual liabilities
The amounts of contractual liabilities included in other liabilities are as follows.
(Millions of yen)Contractual liabilities

FY2021(As of March 31, 2022)
50

FY2022(As of March 31, 2023)
84

7. Financial covenants
Some of the loan agreements which the Company has entered into for securing its short-term and long-termborrowings are subject to financial covenants. The balance amount of the borrowings under these agreements andrelevant covenants are outlined below.

Short-term loans payable
Long-term loans payable
Total

FY2021(As of March 31, 2022)
2,378
13,393
15,771(Millions of yen)
FY2022(As of March 31, 2023)
2,378
11,015
13,393(Fiscal year ended March 31, 2023)(¥814 million of short-term loans payable and ¥3,258 million of long-term loans payable)(1) On and after the corresponding agreement is entered into, total net assets in the consolidated balance sheet on
the last day of each fiscal year and each second quarter shall not be less than 75% of the year-on-year amount.
(2) On and after the corresponding agreement is entered into, total net assets in the non-consolidated balance sheeton the last day of each fiscal year and each second quarter shall not be less than 75% of the year-on-year
amount.
(3) On and after the corresponding agreement is entered into, ordinary profit during the fiscal year ended March 31,2018 and each subsequent fiscal year shall not be negative on a consolidated basis for two consecutive fiscal
years.
(4) On and after the corresponding agreement is entered into, ordinary profit during the fiscal year ended March 31,2018 and each subsequent fiscal year shall not be negative on a non-consolidated basis for two consecutive
fiscal years.
- 22 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(¥814 million of short-term loans payable and ¥3,257 million of long-term loans payable)(1) On and after the corresponding agreement is entered into, the total net assets on the consolidated balance sheeton the last day of each fiscal year and each second quarter shall not be less than 75% of the total net assets on
the consolidated balance sheet on the last day of the fiscal year and second quarter immediately preceding (sixmonths prior to) the fiscal year and second quarter in question or the last day of the fiscal year ended March
2017, whichever is larger.
(2) On and after the corresponding agreement is entered into, the total net assets on the non-consolidated balance
sheet on the last day of each fiscal year and each second quarter shall not be less than 75% of the total net
assets on the non-consolidated balance sheet on the last day of the fiscal year and second quarter immediately
preceding (six months prior to) the fiscal year and second quarter in question or the last day of the fiscal year
ended March 2017, whichever is larger.
(3) On and after the corresponding agreement is entered into, ordinary profit during each fiscal year shall not be
negative on a consolidated basis for two consecutive fiscal years.
(4) On and after the corresponding agreement is entered into, ordinary profit during each fiscal year shall not be
negative on a non-consolidated basis for two consecutive fiscal years.
(¥750 million of short-term loans payable and ¥4,500 million of long-term loans payable)(1) On and after the corresponding agreement is entered into, the total net assets on the consolidated balance sheeton the last day of each fiscal year and each second quarter shall not be less than 75% of the total net assets on
the consolidated balance sheet on the last day of the fiscal year and second quarter immediately preceding (sixmonths prior to) the fiscal year and second quarter in question or the last day of the fiscal year ended March
2019, whichever is larger.
(2) On and after the corresponding agreement is entered into, the total net assets on the non-consolidated balance
sheet on the last day of each fiscal year and each second quarter shall not be less than 75% of the total net
assets on the non-consolidated balance sheet on the last day of the fiscal year and second quarter immediately
preceding (six months prior to) the fiscal year and second quarter in question or the last day of the fiscal year
ended March 2019, whichever is larger.
(3) On and after the corresponding agreement is entered into, ordinary profit during each fiscal year shall not be
negative on a consolidated basis for two consecutive fiscal years.
(4) On and after the corresponding agreement is entered into, ordinary profit during each fiscal year shall not be
negative on a non-consolidated basis for two consecutive fiscal years.
For the above short-term loans payable (¥2,378 million in total) and long-term loans payable (¥11,015 million in
total), despite being partially in breach of part of these covenants at the end of the fiscal year ended March 31, 2023,
financial institutions have granted a consent not to exercise the right to accelerate repayment.

- 23 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(Notes on Consolidated Statements of Income)1.

The amounts of revenue arising from contracts with customers are as follows.
(Millions of yen)

FY2021(from April 1, 2021
to March 31, 2022)
38,224

Revenue arising from contracts with customers

FY2022(from April 1, 2022
to March 31, 2023)
92,938

2. The amount of inventory at the fiscal year end is the amount that reflects writing-down of the book value dueto the decline in profitability, and the following inventory valuation loss is included in the cost of goods sold.
Figures in parenthesis indicate the reversal of the write down.
(Millions of yen)

FY2021(from April 1, 2021
to March 31, 2022)(435)

FY2022(from April 1, 2022
to March 31, 2023)(1,262)(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)

FY2021(from April 1, 2021
to March 31, 2022)
57,12840,00097,128Cash and deposits
Securities
Cash and cash equivalents- 24 -FY2022(from April 1, 2022
to March 31, 2023)
63,741
26,50090,241

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(Segment Information)
Segment Information
1. Overview of reportable segments
The reportable segments of the JAT Group are units for which separate financial information is available andwhose 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 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
FY2021 (from April 1, 2021 to March 31, 2022)(Millions of yen)

Reportable segments

Consolidated
financialstatements(Notes 2)

Facilities
Management

Merchandise
Sales

40,02913,174

3,852

57,057－57,057

1,982

769

796

3,547

(3,547)－42,012(24,863)
292,027

13,944(6,134)35,9594,649(3,091)
10,21360,605(34,090)
338,199(3,547)(7,165)
125,678

57,057(41,255)
463,878

Depreciation andamortization

29,2781,533

477

31,289505

31,794

Increase in tangible fixed
assets and intangible fixed
assets

2,957

2,143

33

5,134

154

5,289

Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income/(loss)
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 ¥7,183 million of administration expenses for the administration and otherdivisions at the parent company’s head office and certain subsidiaries which are not allocated to each of the reportablesegments.
(2) Adjustments to the segment assets include ¥174,595 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 ¥509 million of depreciation with respect to the administration andother divisions at the parent company’s 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 (¥154 million) are primarily due to acquisition- 25 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)of robots for test installation.
2. Segment income is adjusted with operating income recorded in the Consolidated Statements of Income.

FY2022 (from April 1, 2022 to March 31, 2023)(Millions of yen)

Reportable segments

Consolidated
financialstatements(Notes 2)

Facilities
Management

Merchandise
Sales

63,28041,317

8,452

113,050－

113,050

2,391

892

953

4,237

(4,237)－65,672(3,133)
280,331

42,2101,640
38,082

9,405(1,365)
10,001

117,288(2,858)328,415(4,237)(7,720)118,539

113,050(10,579)
446,955

Depreciation andamortization

26,4901,670

428

28,589432

29,022

Increase in tangible fixed
assets and intangible fixed
assets11,127732

146

12,00677

12,083Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income/(loss)
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 ¥7,733 million of administration expenses for the administration and otherdivisions at the parent company’s head office and certain subsidiaries which are not allocated to each of the reportablesegments.
(2) Adjustments to the segment assets include ¥167,407 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 ¥451 million of depreciation with respect to the administration andother divisions at the parent company’s 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 (¥77 million) are primarily due to acquisitionof robots for cleaning.
2. Segment income is adjusted with operating income recorded in the Consolidated Statements of Income.

- 26 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2023 (FY2022)(Per Share Information)(Yen)

FY2021(from April 1, 2021
to March 31, 2022)
1,655.32(270.75)

Net assets per share
Net income / (loss) per share
Notes:FY2022(from April 1, 2022
to March 31, 2023)
1,613.62(41.89)

1. Diluted net income per share is not shown since potential shares do not exist.
2. Net income / (loss) per share is calculated based on the following:(Millions of yen, except for number of shares)

FY2021(from April 1, 2021
to March 31, 2022)
Net income / (loss) per share
Net income / (loss) attributable to owners of theparentAmount not attributable to common shareholders
Net income / (loss) attributable to owners of theparent available for distribution to commonshareholders
Average number of shares outstanding during theperiod (thousand shares)(Significant Subsequent Events)
Not applicable- 27 -FY2022(from April 1, 2022
to March 31, 2023)(25,217)(3,901)--(25,217)(3,901)

93,136

93,136