May 11, 2018

Financial Report for the Year Ended March 31, 2018 (FY2017) [J-GAAP] (Consolidated)
This document has been translated from the Japanese original, for reference purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.

Company name: Japan Airport Terminal Co., Ltd.
Listed stock exchange: Tokyo, 1st Section
Code number: 9706
URL: http://www.tokyo-airport-bldg.co.jp/company/en/
Representative: Nobuaki Yokota, President and COO
Contact: Kazuhito Tanaka, Managing Director
TEL 03-5757-8409
Scheduled date of annual general meeting of shareholders: June 27, 2018
Scheduled date of filing securities report: June 27, 2018
Scheduled date of commencing dividend payment: June 28, 2018
Supplementary materials on financial results (yes/no): Yes
Holding of earnings announcement (yes/no): Yes (for institutional investors and financial analysts)(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Year Ended March 31, 2018 (April 1, 2017 to March 31, 2018)(1) Consolidated Business Results(%: Change from the previous period)
Net income attributable toOperating revenues
Operating income
Ordinary income
owners of the parent

%
10.2
0.4

Millions of yen

FY2017FY2016

225,953
204,953(Note) Comprehensive income: FY2017

Millions of yen

13,429
9,497

Millions of yen

FY2016¥9,739 million (20.1%)¥13,758 million (41.3%)

Net income per
share
Yen

Diluted net income
per shareYen

144.9884.78

138.3780.84

FY2017FY2016%41.4(16.0)(Reference) Equity in earnings of affiliates: FY2017

FY2016

Millions of yen

11,776
6,886

%
71.0
(22.4)%

Ordinary income tototal assets%

Operating income tooperating revenues
%

9.2
5.8

7.4
5.9

5.9
4.6

Return on equity¥2,335 million

%
30.0
(5.9)

16,696
12,843¥2,291 million(2) Consolidated Financial Position
Total assets

Equity capital tototal assets

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

239,499
213,026

136,156
125,43855.7
57.7

1,641.82
1,511.92

As of March 31, 2018
As of March 31, 2017

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

¥133,362 million

As of March 31, 2017

¥122,811 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

22,257
15,620(28,474)(8,373)

9,438(11,702)42,32939,108FY2017FY2016
2. Dividends

Dividends per share

FY2016FY2017FY2018(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

%

%

-

16.00
20.00

-

17.00
24.00

33.00
44.00

2,680
3,574

38.9
30.4

2.2
2.8

-

21.00

-

21.00

42.00

34.1

In calculating the forecast for dividend payout ratio for FY 2018, ¥21,300 million is excluded from net income attributable to ownersof the parent (¥31,300 million). ¥21,300 million is the amount, after considering deferred tax effect, of one-time extraordinary gain on
negative goodwill, etc. to be recognized (¥23,000 million) concerning the stock acquisition of Tokyo International Air Terminal Corp.
(TIAT).

3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2019 (April 1, 2018 to March 31, 2019)(%: 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

131,200
266,000

21.4
17.7

11,00020,500

63.0
52.6

9,900
18,100

13.2
8.4

27,00031,300

335.9
165.8

332.39385.33First 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): None (New: None
Excluded: None)(2) Changes in accounting policies, accounting estimates, and restatement of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement of revisions: None
(3) Number of shares outstanding (common stock)1) Number of shares outstanding at the year-end (including treasury stock):
As of March 31, 2018
84,476,500 shares
As of March 31, 20172) Number of treasury stock at the year-end:
As of March 31, 2018
3,247,735 shares
As of March 31, 2017
3) Average number of shares outstanding during the period:
Year ended March 31, 2018
81,228,813 sharesYear ended March 31, 2017
(Reference) Summary of Non-Consolidated Financial Results
Financial Results for the Year Ended March 31, 2018 (April 1, 2017 to March 31, 2018)(1) Non-Consolidated Business Results
Operating revenues
Millions of yen

FY2017FY2016

176,160
160,541

Operating income

%
9.7
(3.0)

Millions of yen

3,247,541 shares
81,229,018 shares(%: Change from the previous period)

Ordinary income%
19.2(23.2)

Millions of yen

8,769
7,832

Yen

Diluted net income per share
Yen

76.74
38.86

73.14
36.94

Net income per share

FY2017FY2016

7,811
6,552

84,476,500 shares

Net income%
12.0(17.9)%
97.5(32.9)

Millions of yen

6,233
3,156

(2) Non-Consolidated Financial Position
Total assets

As of March 31, 2018
As of March 31, 2017
(Reference) Equity capital:

Net assets

Equity capital tototal assets

Net assets per share

Millions of yen

Millions of yen%

Yen

211,950
190,788

104,497
100,498

49.3
52.7

1,286.46
1,237.22

As of March 31, 2018 ¥104,497 million

As of March 31, 2017 ¥100,498 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 4 of the appendix materials “1.
Analysis of Business and Financial Results (4) Forecast for FY 2018 (the fiscal year ending March 31, 2019).
Supplementary materials on financial results and details of presentation at earnings announcement
Earnings announcement is planned to be held on May 18, 2018 for financial analysts. Video of the presentation as well as
presentation materials used in the earnings announcement will be promptly posted on the Company’s website following the meeting.

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)

Contents of the Appendix Materials
1.

ANALYSIS OF BUSINESS AND FINANCIAL RESULTS............................................................................... - 2 -(1) ANALYSIS OF CONSOLIDATED B USINESS RESULTS FOR FY2017 .................................................................................. - 2 (2) ANALYSIS OF CONSOLIDATED FINANCIAL POSITION FOR FY2017 ................................................................................ - 3 (3) ANALYSIS OF CONSOLIDATED CASH FLOWS FOR FY2017 ............................................................................................ - 4 (4) FORECAST FOR FY 2018 (THE FISCAL YEAR ENDING MARCH 31, 2019) ........................................................................ - 4 2.

BASIC APPROACH ON SELECTION OF ACCOUNTING STANDARDS ........................................................ - 5 -3.

CONSOLIDATED FINANCIAL STATEMENTS AND MAIN NOTES .............................................................. - 6 -(1) CONSOLIDATED BALANCE SHEETS .............................................................................................................................. - 6 (2) CONSOLIDATED STATEMENTS OF I NCOME AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ................. - 8 Consolidated Statements of Income ............................................................................................................................... - 8 Consolidated Statements of Comprehensive Income....................................................................................................... - 10 (3) CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY .....................................................................- 11 (4) CONSOLIDATED STATEMENTS OF CASH FLOWS .......................................................................................................... - 13 (5) NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS .......................................................................................... - 15 (Notes on the Premise of a Going Concern) .................................................................................................................. - 15 (Basic Important Conditions to Prepare Consolidated Financial Statements) ................................................................... - 15 (Notes on Consolidated Balance Sheets) ...................................................................................................................... - 17 (Notes on Consolidated Statements of Income).............................................................................................................. - 18 (Notes on Consolidated Statements of Cash Flows) ....................................................................................................... - 19 (Segment Information) ............................................................................................................................................... - 19 (Per Share Information) ............................................................................................................................................. - 22 (Significant Subsequent Events) .................................................................................................................................. - 22 --1-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)

1. Analysis of Business and Financial Results(1) Analysis of Consolidated Business Results for FY2017
During the fiscal year ended March 31, 2018 (FY2017), the Japanese economy has experienced a gradual
recovery. Looking ahead, continuing improvement in employment and income, coupled with various
government policies, is expected to support moderate economic recovery, though it is important to prudently
monitor the uncertainty in overseas economies and volatility of capital markets.
The airline industry needs to further strengthen its competitiveness for a number of reasons that aretransforming our business environment, including increased competition caused by industry liberalization (openskies agreements) and expansion of routes by low-cost carriers (LCCs), reform of airport management
structures aimed at enhancing efficiency by integrating airport land and terminal building operations, andmovements aimed at strengthening functions of metropolitan airports. Furthermore, the Japanese government
targets 40 million for annual inbound tourists to Japan in 2020 in order to meet the new challenge of a
tourism-oriented developed nation, and the annual number of inbound tourists for 2017 exceeded 28 million.
A review of passenger volume during FY 2017 shows that passengers on domestic flights at Haneda
Airport and on international flights at Haneda Airport, Narita International Airport, and Kansai International
Airport rose year-on-year.
Under these circumstances, Japan Airport Terminal (“JAT”) Group has laid out its long-term vision of “To
be a World Best Airport” so that we can achieve sustainable growth through the creation of new businesses andthe generation of profits, while aiming to be an airport that satisfies the needs of all stakeholders. Based on thislong-term vision, the medium-term business plan (FY2016 to FY 2020) identifies three strategic pillars: 1)
Pursuit of the ideal of Haneda Airport, 2) Expansion of our business domain utilizing our strengths and thediversification of profits, and 3) Reconstruction of our profit base and the building of competitive advantages.
We will continue to reposition and strengthen our organizational and governance structure to ensure that we
effectively implement these strategies.
As part of our efforts to expand and diversify our business domain and profit base by leveraging ourstrengths, “THE HANEDA HOUSE”, business mall project which targets business people, is now being carriedout. The concept of the project is “enjoy your time at Haneda” – transformation from a place for transit to a
destination in itself. Under this concept, Regus Express, equipped with rental offices, meeting rooms, and abusiness lounge, opened in May 2017 at terminal 1 as the first phase and the grand opening is now scheduledfor December 2018. Existing pay lounges have been renovated and reopened as “Power Lounge” where
pre-ordered gifts can be picked up. The “HANEDA Shopping” website and “JAPAN DUTY FREE” pre-orderwebsite were upgraded to enhance visual effects and usability, and a new e-commerce shop was opened on“Kaola.com”, China's cross-border e-commerce site in November 2017. In addition, at Chubu Centrair
International Airport, we opened three luxury brand shops in December 2017 and Air BIC CAMERA in April
2018, which offers electronics and other popular products targeting foreign tourists visiting Japan. A duty freeshop was also opened at Haneda airport’s international arrival area. Furthermore, sales at the airport-style in-city
duty-free shop (Japan Duty Free GINZA) have progressed well as a result of various marketing efforts,
including offering new brands since February 2018. We will continue to generate profits by taking advantage ofopportunities created by increasing inbound tourists that are expected to continue to grow in the mid- to thelong-term as well as Japanese outbound tourists.
As a result, consolidated operating revenues for FY 2017 (April 1, 2017 – March 31, 2018) totaled¥225,953 million (up 10.2% from the previous fiscal year), with operating income of ¥13,429 million (up41.4%), ordinary income of ¥16,696 million (up 30.0%), and net income attributable to owners of the parent of¥11,776 million (up 71.0%).
Haneda Airport’s passenger terminals were evaluated by the Skytrax (UK) as achieving the global best
standard and awarded the 5-Star Airport Rating in September 2017 for the fourth year in a row. Furthermore, inMarch 2018, Haneda Airport’s passenger terminals were awarded the third place in the “World’s Best Airports”,
which comprehensively evaluates various aspects of international airports. We were also awarded first place in
the World's Cleanest Airports (the fifth time, for the third year in a row) and World's Best Domestic Airports (forthe sixth consecutive year). In a bid to further enhance our reputation, we will work cooperatively as an entire
airport to move together in our preparations for the 2020 Tokyo Olympics and Paralympics Games. With thehighest priority placed on airport customers, we will ensure the safety of the airport and will provide services
that offer exceptional customer convenience, comfort, and functionality. Aiming to be the world’s bestpassenger terminal and to earn the long-term trust of customers, we are committed to contributing to theadvancement of air transportation.
Currently, in order to further strengthen the functions of Tokyo metropolitan airports, the government istaking measures to provide detailed information through explanatory meetings in order to gain an understandingof local residents and communities.
Under these circumstances, while gaining an understanding of local areas, Tokyo International Air
Terminal Corp. (“TIAT”) has initiated construction for new projects, including a plan to expand the international
passenger terminal. As part of financing the expansion project, TIAT developed a plan to raise equity by issuing-2-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)

new shares to its shareholders.
In response to this, on April 27, 2018 we acquired new shares issued by TIAT so that we will fulfill our
responsibilities as a consortium leader of TIAT and provide support to ensure that its business will continue
successfully. With this acquisition of shares, our shareholdings in TIAT was increased to 51.00%, whichchanged TIAT’s status for our consolidated accounting from an associate accounted for using the equity method
to a consolidated subsidiary. Going forward, as the operator of domestic passenger terminals, we will makeefforts to improve customer convenience jointly with TIAT, the operator of the international passenger terminal,
by leveraging hub functions for domestic and international flight networks, which are Haneda’s majoradvantage.
The following is a breakdown of earnings by segment. Note that the figures for operating income are
equivalent to those for segment income.
[Facilities Management]
Rental revenue rose from the previous year due primarily to an increase in rental office spaces to airlinesat Haneda Airport’s domestic terminals.
Revenue from facility user charges rose due to a growth in domestic passenger volume.
Other revenues rose from the previous year because revenue from outsourcing business at Haneda’s
international terminal and revenue from construction works increased.
As a result, operating revenues from facilities management operations increased to ¥ 60,451 million (up6.4% year-on-year). Operating income for the segment was ¥6,714 million (up 3.8% year-on-year) due to anincrease in maintenance and outsourcing expenses and charges for temporary use of national property.
[Merchandise Sales]
Sales at domestic terminal stores rose from the previous year primarily due to an increase in domestic
passenger volume and sales promotion efforts.
Sales at international terminal stores increased from the previous year, because the sales at shops at Narita
Airport and airport-style in-city duty-free shops increased and new duty-free shop was opened at Chubu
Centrair International Airport in December 2017, although the change in contract structure of some shops at
Kansai International Airport had negative impact on revenue.
Other revenues (wholesale) rose from the previous year due to an increase in the wholesaling of products
to stores at Haneda’s international terminal in line with growing international passenger volume at Haneda.
As a result, operating revenues from merchandise sales operations increased to ¥148,647 million (up12.7% year-on-year) and operating income rose to ¥11,322 million (up 56.1% year-on-year) due to growth ingross profit from airport-style in-city duty-free shops as well as decline in operating expenses.
[Food and Beverage]
Sales from food and beverage operations increased from the previous year as a result of growth indomestic passenger volume and creation of new menu.
Sales from in-flight meals rose from the previous year due to an increase in the passenger load factors of
foreign carriers, our clients in this business, and acquisition of new clients.
Other revenues increased due to an increase in outsourcing business at Haneda’s international terminal.
As a result, operating revenues from food and beverage operations increased to ¥22,285 million (up 4.2%
year-on-year) and operating income for the segment increased to ¥896 million (up 18.3% year-on-year),coupled with various cost saving efforts.
(2) Analysis of Consolidated Financial Position for FY2017[Assets]
Current assets increased by ¥5,680 million from the previous fiscal year end to ¥73,235 million, primarily
due to an increase in cash and deposits by ¥10,246 million and in accounts receivable by ¥2,575 million,
despite a decrease in marketable securities by ¥7,000 million.
Fixed assets increased by ¥20,792 million from the previous fiscal year end to ¥166,264 million, primarily
because tangible fixed assets rose by ¥17,296 million and investment securities increased by ¥4,106 million.
As a result, total assets increased by ¥26,472 million from the previous fiscal year end to ¥239,499 million.
[Liabilities]
Current liabilities increased by ¥2,089 million from the previous fiscal year end to ¥37,685 million,
primarily because accrued expenses increased by ¥1,692 million and income taxes payable increased by¥1,288 million although short-term loans payable decreased by ¥1,922 million.
Fixed liabilities increased by ¥13,664 million from the previous fiscal year end to ¥65,657 million,
primarily because long-term loans payable increased by ¥14,760 million.
-3-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)

As a result, total liabilities increased by ¥15,754 million from the previous fiscal year end to ¥103,342
million.
[Net assets]
Total net assets increased by ¥10,718 million from the previous fiscal year end to ¥136,156 million
primarily because retained earnings increased by ¥8,771 million and valuation difference on available-for-salesecurities increased by ¥832 million.
As a result, equity ratio was 55.7% (compared to 57.7% at the previous fiscal year end).
(3) Analysis of Consolidated Cash Flows for FY2017
Cash and cash equivalents (hereinafter referred to as “cash”) at the current fiscal year end increased by¥3,221 million compared to the previous fiscal year end to ¥42,329 million.
The following is a summary of cash flows and the factors behind these flows for the current fiscal year.
[Cash flows from operating activities]
Net cash provided by operating activities increased by ¥6,636 million (up 42.5%) from the previous fiscal
year to ¥22,257 million. This was primarily due to an increase in income before income taxes and minority
interests.
[Cash flows from investing activities]
Net cash used in investing activities increased by ¥20,101 million (up 240.1%) from the previous fiscal yearto ¥28,474 million. This was largely due to an increase in the purchase of tangible fixed assets.
[Cash flows from financing activities]
Net cash provided by financing activities was ¥9,438 million, compared to a cash outflow of ¥11,702
million in the previous fiscal year. This was primarily because proceeds from long-term loans payable increased.
(4) Forecast for FY 2018 (the fiscal year ending March 31, 2019)
Over the next fiscal year, continuing improvement in employment and income, coupled with various
government policies, is expected to support moderate economic recovery, while it is also necessary to prudently
monitor the risk factors such as uncertainty in overseas economies and volatility of capital markets.
The airline industry is experiencing a number of important initiatives aimed at strengthening functions ofmetropolitan airports to meet the demands for hosting the 2020 Tokyo Olympics and Paralympics Games andbeyond as well as upgrading the gateway functions at regional airports to meet the Japanese government’s goalof a tourism-oriented developed nation and its targets of 40 million for annual inbound tourists in 2020 and 60
million in 2030. The industry is also stepping up its efforts to heighten security against terrorism and taking
security and safety measures with a view toward aviation safety. Faced with such drastically changing
environments, the industry needs to further strengthen its competitiveness.
Under these circumstances, the Company has acquired additional shares of TIAT, which changed TIAT’s
accounting status to a consolidated subsidiary, and started to consolidate financial results of the international
passenger terminal. JAT Group will make efforts to enhance efficiency through integrated operations ofdomestic and international terminals. Our present expectations for earnings by segment are described below.
Facilities management operations are expected to surpass the results of FY 2017 because revenue of TIAT’srental revenue and revenue from facility user charges at the international terminal will be added.
Merchandise sales operations are forecast to exceed the results of FY 2017 due to continued growth ininternational passenger volume, consolidation of TIAT’s merchandise sales and addition of merchandise sales at
Chubu Centrair Airport.
Food and beverage operations are expected to fall short of the results of FY2017 because of temporary
closure of shops during renovation in domestic terminal 1 and construction of expansion of international terminal
in terminal 2.
Therefore, for consolidated performance in the fiscal year ending March 31, 2019 (FY2018), we forecast
operating revenue of ¥266,000 million (up 17.7% year-on-year) and operating income of ¥20,500 million (up52.6%). Ordinary income is forecast to be ¥18,100 million (up 8.4%) since equity in gains of affiliates regarding
TIAT will not be recognized and the interest expense of TIAT will be recorded. Net income attributable to ownersof the parent is forecast to be ¥31,300 million (up 165.8%) due to recognition of extraordinary gain arising fromthe acquisition of shares in TIAT, which change TIAT to a consolidated subsidiary. Please refer to the details in
the announcement made on May 11, 2018 “Announcement of the recognition of extraordinary gain involving achange in consolidated subsidiary”.

-4-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)

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

-5-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)

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

ASSETS
Current assets
Cash and deposits
Accounts receivable
Marketable securities
Merchandise and finished products
Raw materials and stored goods
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery, equipment and vehicles (net)Land
Lease assets
Accumulated depreciation and impairment loss
Lease assets (net)
Construction in progress
Other tangible fixed assets
Accumulated depreciation and impairment loss
Other tangible fixed assets (net)Total tangible fixed assets
Intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit assets
Other investments
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS-6-

FY2016(As of March 31, 2017)

FY2017(As of March 31, 2018)32,24016,991
7,000
7,687
178
1,146
2,334
(23)
67,55542,487
19,566
－
6,512
161
1,250
3,294
(37)
73,235

277,768(197,790)
79,978
10,878(8,384)
2,494
11,412
2,070(1,271)799
1,064
30,524(25,582)
4,941
100,690
1,812

281,100(204,919)
76,18011,827(8,821)
3,005
11,371
1,159
(537)
621
21,49632,101(26,789)
5,311
117,987
1,889

27,846
6,665
4,999
538
2,933
(16)
42,967
145,471
213,026

31,953
6,665
4,648
298
2,820
－
46,387
166,264
239,499

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)

LIABILITIESCurrent liabilities
Accounts payable
Short-term loans payable
Income taxes payable
Allowance for employees’ bonuses
Accrued expenses
Allowance for directors’ bonuses
Other current liabilities
Total current liabilities
Fixed liabilities
Bonds with stock acquisition rights
Long-term loans payable
Lease obligations
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-7-

FY2016(As of March 31, 2017)(Millions of yen)
FY2017(As of March 31, 2018)

8,695
9,712
1,913
1,477
7,625
227
5,944
35,596

9,707
7,790
3,202
1,673
9,317
250
5,743
37,68530,096
13,450
527
4,254
464
3,198
51,99287,58830,07028,210
504
3,304
471
3,095
65,657103,342

17,48921,33784,054(3,244)
119,637

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

5,444

6,276

(1,545)
52
(776)
3,174
2,626
125,438
213,026(1,259)
54
(116)
4,954
2,793
136,156
239,499

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
FY2016(from April 1, 2016
to March 31, 2017)
Operating revenues
Rent revenue
Facility user charges revenue
Other revenues
Sale of merchandise
Sale of food and beverage
Total operating revenues
Cost of sales
Cost of sales of merchandise
Cost of sales of food and beverage
Total cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and wages
Provision for employees’ bonuses
Provision for directors’ bonuses
Expenses for retirement benefits
Rent expenses
Outsourcing and commission
Depreciation expenses
Other costs and expenses
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in gains of affiliates
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of fixed assets
Fee and commission expenses
Miscellaneous expenses
Total non-operating expenses
Ordinary income-8-(Millions of yen)
FY2017(from April 1, 2017
to March 31, 2018)13,07818,194
26,205
130,759
16,715204,953

13,27818,75429,665
147,117
17,138225,953

99,00010,477
109,477
95,475

111,480
10,746122,226
103,726

9,838
1,376
227
1,047
12,504
24,464
11,60924,91085,9789,497

10,651
1,572
250
997
12,73427,502
10,80625,78290,296
13,429

627
276
2,291
676
3,871

627
324
2,335
763
4,050

417
58
－
49
525
12,843

331
110
269
72
783
16,696

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)

FY2016(from April 1, 2016
to March 31, 2017)
Extraordinary gains
Gains on sales of fixed assets
Gains on sales of investment securities
Total extraordinary gains
Extraordinary loss
Impairment loss
Loss on retirement of fixed assets
Loss on valuation of other investments
Total extraordinary loss
Income before income taxes and non-controlling interests
Income taxes – current
Income taxes – deferred
Total income taxes
Net income before non-controlling interests
Net income attributable to non-controlling interests
Net income attributable to owners of the parent-9-(Millions of yen)
FY2017(from April 1, 2017
to March 31, 2018)

－
277
277

1
－
1

1,777
109
4
1,891
11,230
4,244
(9)
4,234
6,995
109
6,886

138
7
27
173
16,523
4,940
(370)
4,569
11,954
177
11,776

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)

Consolidated Statements of Comprehensive Income

Net income before non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
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- 10 -FY2016(from April 1, 2016
to March 31, 2017)
6,995(Millions of yen)
FY2017(from April 1, 2017
to March 31, 2018)
11,954

537
(3)
591

842
2
664

1,618

294

2,743
9,739

1,803
13,7589,606

13,556133

201

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)(3) Consolidated Statements of Changes in Shareholders’ Equity
FY2016 (from April 1, 2016 to March 31, 2017)(Millions of yen)
Shareholders’ equity

Balance at the beginning of current period

Common stock

Capital surplus

17,48921,337Retainedearnings

Treasury stock

79,929(3,244)

Total
shareholders’equity115,512

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)Total changes during current period
Balance at the end of current period(2,761)(2,761)

6,886

6,886
(0)

(0)

－

－

4,124

(0)

4,124

17,48921,33784,054(3,244)

119,637

Accumulated other comprehensive income

Balance at the beginning of current period

Foreigncurrencytranslation
adjustment

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income(1,379)454

Valuationdifference on
available-for-salesecurities

Deferred gains
or losses onhedges4,906(3,127)

55

538

1,581

(3)

603

2,719

538

1,581

(3)

603

2,719

5,444

(1,545)

52

(776)

3,174

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

Balance at the beginning of current period

Non-controllinginterests
2,427

Total net assets
118,394

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)(2,761)
6,886
(0)
199

2,919

Total changes during current period

199

7,043

Balance at the end of current period

2,626

125,438- 11 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)

FY2017 (from April 1, 2017 to March 31, 2018)(Millions of yen)
Shareholders’ equity

Balance at the beginning of current period

Common stock

Capital surplus

17,48921,337Retainedearnings

Treasury stock

84,054(3,244)

Total
shareholders’equity119,637

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)(3,005)(3,005)

11,776

11,776(0)(0)

Total changes during current period

－

－

8,771

(0)

8,771

Balance at the end of current period

17,48921,337

92,826(3,245)

128,408

Accumulated other comprehensive income
Deferred gains
or losses onhedges5,444(1,545)

52

832

286

2

659

1,780

Total changes during current period

832

286

2

659

1,780

Balance at the end of current period

6,276(1,259)

54

(116)

4,954

Balance at the beginning of current period

Foreigncurrencytranslation
adjustment

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income(776)
3,174

Valuationdifference on
available-for-salesecurities

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

Balance at the beginning of current period

Non-controllinginterests
2,626

Total net assets
125,438

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)(3,005)
11,776
(0)
167

1,947

Total changes during current period

167

10,718

Balance at the end of current period

2,793

136,156- 12 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)(4) Consolidated Statements of Cash FlowsFY2016(from April 1, 2016
to March 31, 2017)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for employees’ bonuses
Increase (decrease) in allowance for directors’ bonuses
Increase (decrease) in net defined benefit liabilities
Decrease (increase) in net defined benefit assets
Interest and dividends income
Interest expenses
Equity in losses (earnings) of affiliates
Loss (gain) on sales of investment securities
Loss on retirement of tangible fixed assets
Loss (gain) on sales of tangible 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
Income and other taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchase of intangible fixed assets
Purchase of long-term prepaid expenses
Payments of long-term loans receivable
Other payments
Other proceeds
OthersNet cash provided by (used in) investing activities- 13 -(Millions of yen)
FY2017(from April 1, 2017
to March 31, 2018)

11,23011,693
1,777
98
(19)
80
(295)
(904)
417
(2,291)
(277)
165
(5)
160
1,716
300
658
(3,774)(249)
77
20,558893(434)(5,398)15,62016,523
10,913
138
196
22
89
157
(952)
331
(2,335)－116(3)(2,575)
1,191
(836)
1,011
1,410
(152)
8
25,258944(283)(3,662)
22,257

(27)
(1)
1,770
(9,008)9(1,052)
(86)
(1)
(108)
131
1
(8,373)

(25)
(271)
0
(27,410)
2
(691)
(186)
(2)
(186)
295
2
(28,474)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)

FY2016(from April 1, 2016
to March 31, 2017)
Cash flows from financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayments of lease obligations
Proceeds from stock issuance to non-controllingshareholders
Dividends paid by parent company
Dividends paid to non-controlling shareholders
OthersNet cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period- 14 -(Millions of yen)
FY2017(from April 1, 2017
to March 31, 2018)

2,000
－
－
(10,666)
(340)

2,200
(2,000)20,000(7,362)
(359)

98

－

(2,761)(31)(0)(11,702)(3,005)
(34)
(0)
9,438

(1)

0

(4,456)
43,565
39,1083,221
39,10842,329Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)(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: 18 companies
Names of consolidated subsidiaries
Tokyo Airport Restaurant Co., Ltd.
Japan Duty Free Fa-So-La Isetan Mitsukoshi Co., Ltd
Cosmo Enterprise Co., Ltd.
International Trade Inc.
Japan Airport Logitem Co., Ltd.
BIG WING Co., Ltd.
Japan Airport Techno Co., Ltd.
Air BIC Inc.
Haneda Airport Enterprise Co., Ltd.
Haneda Airport Security Co., Ltd.
Haneda Passenger Service Co., Ltd.
Japan Airport Ground Handling Co., Ltd.
Japan Airport Terminal Trading (Chengdu) Co., Ltd.
LANI KE AKUA PACIFIC, INC.
Sakura Co., Ltd.
Hamashin Co., Ltd.
CTT Co., Ltd.
Kaikan Development Co., Ltd.
LANI KE AKUA PACIFIC, INC. was newly established during the current fiscal year and included in thescope of consolidation.
2) Non-consolidated subsidiary
Tsukizi Hamashin Co., Ltd.
The non-consolidated subsidiary is small in size, and its total assets, operating revenues, net income/loss, andretained earnings do not have a significant impact on the consolidated financial statements.
2. Application of equity method
1) Number of affiliated company that is accounted for using the equity method: 3 companies
Names of affiliated company that is accounted for using the equity method
Tokyo International Air Terminal Corporation
Airport Transport Service Co., Ltd.
Japan Airport Delica Inc.
2) A non-consolidated subsidiary and Seikousha Inc. and seven other affiliated companies are not included in thescope of the application of equity method, since the aggregate amounts corresponding to the shares held by theCompany of those companies’ net income/loss and retained earnings do not have a significant impact on thoseof consolidated financial statements.
3. Fiscal year of consolidated subsidiaries
Of consolidated subsidiaries, Japan Airport Terminal Trading (Chengdu) Co., Ltd. and LANI KE AKUAPACIFIC, INC. end the fiscal year on December 31. Necessary adjustments arising from important transactions
during the period between its closing date and the consolidated closing date are made.

- 15 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)

4. Summary of significant accounting policies
1) Valuation standards and methods for important assets(A) Securities(i) Held-to-maturity securities are carried at cost.
(ii) Other securities
Other securities with fair values are stated at fair value based on the market value at the closing date, withvaluation differences included in net assets. Cost of securities sold is determined by the moving averagemethod.
Other securities without fair values are stated at cost based on moving average method.
(B) Derivatives
Derivative financial instruments are stated at fair value.
(C) Inventories
Inventories are principally stated at cost determined by the retail method (book value of inventories in thebalance sheet is written-down when their profitability declines). Some consolidated subsidiaries use lastpurchase-price method (book value of inventories in the balance sheet is written-down when their profitability
declines).
2) Depreciation method of important depreciable assets(A) Tangible fixed assets (excluding lease assets)
Depreciation of tangible fixed assets is calculated by the declining balance method. Some consolidated
subsidiaries use the straight-line method for some assets.
(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.
4) Accounting method for employees' retirement benefits(A) Allocation method of projected retirement benefits to each period
The benefit formula method is used to allocate the projected retirement benefits to each period up to the end of
the fiscal year under review.
(B) Amortization of actuarial gains and losses and prior service costs
Prior service costs are amortized under the straight-line method over a certain number of years within the
average remaining service years (5-10 years). Actuarial gains and losses are amortized, beginning in the year
following their occurrence, under the straight-line method over a certain number of years within the averageremaining service years (5-10 years).
5) Recognition of significant revenues and costs
Standards for recognition of revenues and costs of construction contracts(i) Construction of which the percentage of completion by the end of the fiscal year can be reliably estimated
The percentage-of-completion method is used to recognize revenues and costs. Percentage of completion is
calculated based on cost proportion method.
(ii) Other constructions
The completed-contract method is used to recognize revenues and costs.
- 16 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)6) Accounting standards for important hedging transactions(A) Hedge accounting method
Hedging transactions are accounted for under deferred hedge accounting method. Interest rate swaps that meetcertain conditions are accounted for using special treatment.
(B) Hedging instrument and hedged item
Hedging instrument ----------- Interest rate swap
Hedged item -------------------- Floating rate borrowings(C) Hedging policy
Hedging transactions are executed to avoid the risk of interest rate fluctuation, and our basic policy is that they
are not used for speculation purposes.
(D) Evaluation of hedging effectivenessThe effectiveness of hedging is evaluated by comparing the cumulative changes of hedging instruments andcorresponding changes in underlying hedged items. The evaluation is omitted regarding interest rate swaps
that meet the requirements for special treatment.
7) Scope of “Cash and cash equivalents” in consolidated statements of cash flows“Cash and cash equivalents” in the consolidated statements of cash flows consist of cash on hand, deposits
with banks that are withdrawable on demand, and short-term investments which are easily convertible to cashwith insignificant risk of values whose maturity will come within three months.
8) Other important matters regarding preparing consolidated financial statements
Consumption Taxes
Consumption taxes are excluded from transaction amounts.
(Notes on Consolidated Balance Sheets)
1. Assets pledged as collateral and corresponding liabilities with collateral
The following are assets pledged as collateral.

Buildings and structures
Land
Total

FY2016(As of March 31, 2017)
66,166
53
66,220(Millions of yen)
FY2017(As of March 31, 2018)
62,45653
62,510The followings are liabilities for which assets are pledged as collateral.

Short-term loans payable
Long-term loans payable
Total

FY2016(As of March 31, 2017)
5,722
5,800
11,522(Millions of yen)
FY2017(As of March 31, 201)
3,600
2,550
6,150

2. The following items are related to non-consolidated subsidiaries and affiliated companies.

Investment securities (shares)
Investment securities (corporate bonds)

FY2016(As of March 31, 2017)
7,385
6,660

- 17 -(Millions of yen)
FY2017(As of March 31, 2018)
10,005
6,660

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)

3. Liabilities guaranteed
The Company provides a guarantee to the following group company for its borrowing from financial institutions.
(Millions of yen)
FY2016FY2017(As of March 31, 2017)(As of March 31, 2018)
Japan Airport Delica Inc.
Japan Airport Delica Inc.
225
225
(borrowing)
548 million yen(borrowing)
548 million yen
4. Amount of reduction entry
Due to receipt of government subsidy, etc. for the acquisition of assets, reduction entry of the following amount isdeducted from the acquisition costs of tangible fixed assets.
(Millions of yen)
FY2016FY2017(As of March 31, 2017)(As of March 31, 2018)
Buildings and structures
88
88(Notes on Consolidated Statements of Income)
1. Impairment loss
The JAT Group recognized impairment loss on the assets as follows:
FY2016 (from April 1, 2016 to March 31, 2017)
Location
Use
Chuo-ku, TokyoStore (Merchandise sales)Type
Impairment loss
Buildings and structures, others,
1,777 million yen
intangible fixed assets
The JAT Group classifies assets into groups primarily according to business locations.
By examining impairment for fixed assets based on the groupings, the business assets owned by a consolidated
subsidiary whose profitability declined were identified. The carrying amount of those assets was reduced to therecoverable value and the reduced amount was recognized as impairment loss. The loss consists of ¥1,161 million
for buildings and structures, ¥611 million for others, and ¥4 million for intangible fixed assets.
FY2017 (from April 1, 2017 to March 31, 2018)
Location
Use
Type
Impairment loss
Izumisano, Osaka
Store (Merchandise
Buildings and structures, others,
97 million yen
sales), etc.
intangible fixed assets
Narita, Chiba andUnused landLand
41 million yenother locations
The JAT Group classifies assets into groups primarily according to business locations.
By examining impairment for fixed assets based on the groupings, it was judged that the carrying amount of thestores and other assets at Kansai International Airport directly operated by JAT is not recoverable in the future. The
entire carrying amount of those assets was recognized as impairment loss. The loss consists of ¥58 million forbuildings and structures, ¥34 million for others, and ¥4 million for intangible fixed assets.
As for the unused land whose market value significantly fell below the carrying amount, the carrying amount
was reduced to the recoverable value and the reduced amount was recognized as impairment loss of ¥41 million in
extraordinary loss.
Recoverable values of those assets were measured as net realizable values, which were based on real estateappraisal standards and other methods.
2. Loss on retirement of fixed assets
FY2016(from April 1, 2016
to March 31, 2017)
109
－
109

Buildings and structures
Machinery, equipment and vehicles
Total- 18 -(Millions of yen)
FY2017(from April 1, 2017
to March 31, 2018)
42
7

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)(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)
FY2016FY2017(from April 1, 2016
(from April 1, 2017
to March 31, 2017)
to March 31, 2018)
Cash and deposits
32,24042,487
Marketable securities
7,000－
Time deposits with a maturity greater than 3 months
(131)
(157)
Cash and cash equivalents
39,10842,329(Segment Information)
Segment Information
1. Overview of reportable segments
The reportable segments of the Group are units for which separate financial information is available and whose
operating results are regularly reviewed by the Board of Directors in order to decide how to allocate management
resources and evaluate their performances.
The Company is primarily engaged in the management of passenger terminal buildings and the provision ofservices to users at Haneda Airport. Business divisions at the Company’s headquarters develop comprehensive
business strategies and pursue business activities.
The Company is, therefore, composed of business segments with different services based on the businessdivisions. Its three reportable segments are the facilities management operations, merchandise sales operations, andfood and beverage operations.
The segment of facilities management operations leases, maintains and repairs, and operates passenger terminal
facilities at Haneda Airport. It also provides services for passengers. The segment of merchandise sales operations is
engaged in retail sales of products to passengers and others, wholesales of products to companies operating airport
terminals and others, and other activities incidental to these two sales operations. The segment of food and beverage
operations provides food and beverage services to parties including users of Haneda Airport and Narita International
Airport. It is also engaged in the production and sales of in-flight meals and other incidental activities.
2. Method of calculations of sales, income (loss), assets, liabilities, and other items by reportable segments
Accounting methods for reportable business segments are, in general, the same as those described in “Basic
Important Conditions to Prepare the Consolidated Financial Statements.”
Segment income is based on operating income. Intersegment sales and transfers are based on prevailing market
price.
3. Sales, income (loss), assets, liabilities, and other items by reportable segments
FY2016 (from April 1, 2016 to March 31, 2017)(Millions of yen)

Reportable segments

Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income
Segment assets
Other items
Depreciation andamortization
Increase in tangible fixed
assets and intangible fixed
assetsFood andBeverage

Adjustments(Notes 1)

Consolidated
financialstatements(Notes 2)

Facilities
Management

Merchandise
Sales

54,975131,098

18,879204,953－

204,953

1,825

813

2,516

5,155

(5,155)－56,801
6,470
104,111

131,911
7,254
34,981

21,395757
14,982

210,108
14,482
154,076(5,155)(4,985)58,950204,953
9,497
213,026

9,518

1,283

444

11,246446

11,693

5,536

410

275

6,222

1,390

7,613

- 19 -Total

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)(Notes) 1. Details of adjustments are as follows:(1) Adjustments to the segment income include ¥5,000 million of administration expenses for the parent company’s
administration and other divisions at head office which are not allocated to each of the reportable segments.
(2) Adjustments to the segment assets include ¥73,400 million of corporate assets which are not allocated to each of thereportable segments, which includes excess funds managed by parent company, long-term investment (investment
securities), assets related to administration divisions and other assets.
(3) Adjustments to depreciation and amortization include ¥456 million of depreciation with regard to administration
divisions at head office of parent company which are not allocated to each of the reportable segments.
(4) Adjustments to increase in tangible fixed assets and intangible fixed assets (¥1,390 million) are primarily due to landacquisition intended for use as company dormitory for employees of parent company’s head office.
2. Segment income is adjusted with operating income recorded in the Consolidated Statements of Income.

FY2017 (from April 1, 2017 to March 31, 2018)(Millions of yen)

Reportable segments

Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income
Segment assets
Other items
Depreciation andamortization
Increase in tangible fixed
assets and intangible fixed
assetsFood andBeverage

Adjustments(Notes 1)

Consolidated
financialstatements(Notes 2)

Facilities
Management

MerchandiseSales

58,443

147,787

19,722225,953－

225,953

2,007

860

2,563

5,431

(5,431)－60,451
6,714
120,867

148,647
11,322
38,564

22,285896
15,511

231,385
18,934
174,942(5,431)(5,504)64,562225,953
13,429239,504

9,005

1,024

475

10,505408

10,91325,946

1,245

400

27,591

998

28,590Total(Notes) 1. Details of adjustments are as follows:(1) Adjustments to the segment income include ¥5,513 million of administration expenses for the parent company’s
administration and other divisions at head office which are not allocated to each of the reportable segments.
(2) Adjustments to the segment assets include ¥77,969 million of corporate assets which are not allocated to each of thereportable segments, which includes excess funds managed by parent company, long-term investment (investment
securities), assets related to administration divisions and other assets.
(3) Adjustments to depreciation and amortization include ¥420 million of depreciation with regard to administration
divisions at head office of parent company which are not allocated to each of the reportable segments.
(4) Adjustments to increase in tangible fixed assets and intangible fixed assets (¥998 million) are primarily due to landacquisition intended for use as company dormitory for employees of parent company’s head office.
2. Segment income is adjusted with operating income recorded in the Consolidated Statements of Income.

Related Information
FY2016 (from April 1, 2016 to March 31, 2017)
1. Information by product and service
Sales to external customers by product and service is equivalent to the amount described in segment
information, thus the information is omitted.
2. Information by area
(1) Operating revenues
Operating revenues in Japan account for more than 90% of the operating revenues recorded in theConsolidated Statements of Income, thus the information is omitted.
- 20 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)(2) Tangible fixed assets
Tangible fixed assets in Japan account for more than 90% of the tangible fixed assets recorded in theConsolidated Balance Sheet, thus the information is omitted.
3. Information by major customer
Not applicable
FY2017 (from April 1, 2017 to March 31, 2018)
1. Information by product and service
Sales to external customers by product and service is equivalent to the amount described in segment
information, thus the information is omitted.
2. Information by area
(1) Operating revenues
Operating revenues in Japan account for more than 90% of the operating revenues recorded in theConsolidated Statements of Income, thus the information is omitted.
(2) Tangible fixed assets
Tangible fixed assets in Japan account for more than 90% of the tangible fixed assets recorded in theConsolidated Balance Sheet, thus the information is omitted.
3. Information by major customer
Not applicable
Information on impairment loss of fixed assets by reportable segment
FY2016 (from April 1, 2016 to March 31, 2017)(Millions of yen)

Facilities
Management－

Impairment Loss

Merchandise
Sales
1,777

－

Corporation /Elimination－－

Corporation /Elimination
41

Food andBeverage

Total
1,777

FY2017 (from April 1, 2017 to March 31, 2018)(Millions of yen)

Facilities
Management
Impairment Loss－

Merchandise
Sales
97

Food andBeverage

Information on amortized amount and unamortized balance of goodwill by reportable segment
FY2016 (from April 1, 2016 to March 31, 2017)
Not applicable
FY2017 (from April 1, 2017 to March 31, 2018)
Not applicable
Information on gain on negative goodwill by reportable segment
FY2016 (from April 1, 2016 to March 31, 2017)
Not applicable
FY2017 (from April 1, 2017 to March 31, 2018)
Not applicable- 21 -

Total
138

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)(Per Share Information)(Yen)
FY2016FY2017(from April 1, 2016
(from April 1, 2017
to March 31, 2017)
to March 31, 2018)
Net assets per share
1,511.92
1,641.82
Net income per share
84.78
144.98
Diluted net income per share
80.84
138.37
Notes: Net income per share and diluted net income per share are calculated based on the following:(Millions of yen, except for number of shares)
FY2016FY2017(from April 1, 2016
(from April 1, 2017
to March 31, 2017)
to March 31, 2018)

Net income per share
Net income attributable to owners of the parent
Amount not attributable to common shareholders
Net income attributable to owners of the parent
available for distribution to common shareholders
Average number of shares outstanding during theperiod (thousand shares)
Diluted net income per share
Adjustments to net income attributable to owners of
the parent[Interest income] net-of-tax
Increase in common shares (thousand shares)[Bonds with stock acquisition rights (thousand
shares)]Description of potential shares which were notincluded in computing diluted net income per shareas they have no dilutive effect.

6,886
－

11,776－

6,886

11,776

81,22981,228

-17

-17

[-17]
3,737

[-17]
3,753

[3,737][3,753]－－(Significant Subsequent Events)
Business Combination by Acquisition
The Company has completed necessary procedures for subscribing for a third-party allotment of sharesissued by Tokyo International Air Terminal Corp. (“TIAT”) on April 27, 2018. With this acquisition, TIAT has
become a consolidated subsidiary.
(1) Summary of Business Combination
1) Name and business of acquired company
Name: Tokyo International Air Terminal Corp.
Business: Management and operation of International passenger terminal building
2) Primary reasons for business combination
TIAT is a special purpose company for a Private Finance Initiative project that develops and operates
the international passenger terminal and facilities at Tokyo International Airport (“the Business”). TIAT was
established in June 2006 by an equity consortium consisting of 13 companies, including JAT as leading
sponsor, airlines, and financial institutions. TIAT is currently engaged in the construction, management, andoperation of the international passenger terminal, the car parking facilities for airport users, and otherfacilities at Tokyo International Airport (“Haneda Airport”). JAT has been engaged by TIAT to operatefacilities maintenance and management, the duty-free shops, and passenger services at Haneda Airport’s
international passenger terminal. JAT plays a central role in the terminal’s management and operation.
The Business has been progressing steadily since the opening of Haneda Airport International
Passenger Terminal on October 21, 2010. The international terminal was expanded in September 2014 in
response to an increase in daytime slots for international flights. Currently, in order to further strengthen thefunctions of Tokyo metropolitan airports, the central government is taking measures to provide detailed- 22 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2018 (FY2017)

information through explanatory meetings in order to gain an understanding of local residents andcommunities.
Under these circumstances, while gaining an understanding of local areas, TIAT has initiatedconstruction for new projects, including a plan to expand the international passenger terminal. As part offinancing the project, TIAT developed a plan to raise equity by issuing new shares to shareholders.
In response to this, we decided to acquire new shares issued by TIAT so that we will fulfill our
responsibilities as a consortium leader of TIAT and provide support to ensure that the Business will continue
successfully. By so doing, as the operator of domestic passenger terminals, we will make efforts to improvecustomer convenience jointly with TIAT, the operator of the international passenger terminal, by leveraging
hub functions for domestic and international flight networks, which are Haneda’s major advantage.
We completed the acquisition of new shares issued by TIAT by completing payment procedures. With
this acquisition of shares, our shareholdings in TIAT increased to 51.00%, which change d TIAT’s status forour consolidated accounting from an associate accounted for using the equity method to a consolidated
subsidiary.
3) Date of business combination
April 27, 20184) Legal form of business combination
Share acquisition with cash as consideration
5) Name of the company after business combination
No changes are made to the name of the acquired company.
6) Percentage of voting rights acquired
Before acquisition
Increase on acquisition date
After acquisition

38.78%
12.22%
51.00%

7) Primary basis for determining acquiring company
By subscribing for new shares through third-party allotment, JAT owns 51.00 % of voting rights in TIAT.
(2) Acquisition Cost and Breakdown by the Type of Considerations
Fair value of shares of TIAT held by the Company before the business combination: ¥6,980 million
Cash used for this acquisition: ¥6,550 million
Acquisition cost: ¥13,530 million(3) Difference between Acquisition Cost and Total Amount of Acquisition Costs by Each Transaction
Loss of step acquisition: ¥2,725 million(4) Major Expenses and their Amount Related to the Acquisition
Advisory and other fees: ¥40 million(5) Notes on Allocation of Acquisition Cost
1) Breakdown of assets acquired and liabilities assumed at the time of business combination
Current assets:¥54,374 million
Fixed assets:¥180,137 million
Total assets:¥234,511 million
Current liabilities:¥17,261 million
Fixed liabilities:¥159,785 million
Total liabilities:¥177,047 million
2) Amount of gain on negative goodwill and reasons for the negative goodwill
Amount of gain on negative goodwill: ¥20,126 million
Reasons for the recognition: The total net asset value of the acquired companies at the time of the businesscombination was higher than the cost of acquisition; therefore, the difference was recognized as negative
goodwill.

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