Balance Sheet(As of March 31, 2024)(Millions of yen)
Assets
Account Title
Current assets

Liabilities
Account Title

Amount57,052

AmountCurrent liabilities

51,274

41,833

Accounts payable – trade

6,513

Accounts receivable - trade

9,538

Current portion of long-termloans payable

9,594

Merchandise

3,260

Cash on hand and deposits

Supplies
Accounts receivable - other( 9,594)

223

Lease obligations (current)

12

1,325

Accounts payable - other

1,385

Accrued expenses

24,955Prepaid expenses

869

Other current assets

2

Noncurrent assets(Senior loan)

102,080

Income taxes payable3

Accrued interest expenses

8,060

Other current liabilities

748

Noncurrent liabilities

132,327

97,496

Shareholder subordinatedbonds

21,030

Building

170,613Long-term loans payable

109,876

Structures

2,864

Machinery and equipment

15,990Property, plant and equipment

VehiclesTools, furniture and fixtures
Leased assets

198
28,522122

Construction in progress

102

Accumulated depreciation△ 120,916

Intangible assets

662

Software662(Senior loan)( 89,326)(Shareholder
subordinated loans)Long-term lease deposit
received
Provision for directors'
retirement benefits
Interest-rate swap liabilities
Lease obligations (noncurrent)
Asset retirement obligations(non-current)
Other noncurrent liabilities

Total liabilities( 20,550)
487
31
550
0
341
10

183,602
Net assets

Investments and other assets
Long-term prepaid expenses

3,921

Shareholder's equity△23,919

7

Capitalization

100

Deferred tax assets

2,914

Capital surplus

26,430

Separately managed penalty
in trust

1,000

Legal capital surplus
Retained earnings
Other retained earnings
Retained earnings
brought forward
Valuation and translation
adjustments
Deferred gains or losses onhedgesTotal assets

159,133- 1 -26,430△ 50,449△ 50,449△ 50,449
△ 550
△ 550

Total equity△ 24,469

Total liabilities and net assets

159,133

Income Statement
From April 1, 2023 to March 31, 2024
(Millions of yen)Account Title

AmountOperating revenue
Rents

6,156

Facility rental income

30,774

Sales of goods

40,664

Restaurant sales

234

Other revenue

4,475

82,304

Cost of sales
Cost of goods sold

19,569Operating gross profit

62,735－

Selling, general, andadministrative expenses

48,819Operating profit

13,915－Non-operating income
Interest income0

Miscellaneous income

280

281

Non-operating expenses
Interest expenses

4,789

Miscellaneous losses

35

4,824

Ordinary profit

9,372

Extraordinary profit
State subsidy

00Extraordinary loss
Loss on retirement of noncurrent assets
Costs of retirement of
noncurrent assets

1058

Other extraordinary loss

070

Loss before income taxes

9,302

Income taxes - current

3△

Income taxes - deferred
Net profit

2,914

3
△

2,914
12,213- 2 -Notes
Notes on Matters Related to Important Accounting Policies

I.

1.

Criteria and methods for evaluating assets(1)

Derivatives: Market value method(2)

Inventory assets: Based on cost method using retail method (balance sheet values are calculated using
method of reducing book value when the contribution of inventories to profitability declines).

2.

Method of depreciation of noncurrent assets(1)

Property, plant, and equipment (not including leased assets): Straight line method(2)Intangible assets (not including leased assets): Straight line method
As for the software used in-house, the Company adopts the straight-line method based on an
expected usage period of five years for internal use.

(3)

Leased assets: Straight-line method, using the term of the lease as the useful life and a residual value of zero,is used.

3.
(1)

Criteria for recording reserves
Allowance for doubtful accounts: In preparation for losses from default on claims, the Company records the
anticipated unrecoverable amount for specific claims such as those considered at risk of default, considering
the possibility of recovery for each claim individually.
No allowance for doubtful accounts was recorded in the fiscal year under review because there wereno anticipated unrecoverable amounts in default or considered at risk of default.
(2)

4.

Provision for directors' retirement benefits: The Company records the required amounts payable as ofthe end of the term in accordance with internal rules on the payment of directors' retirement benefits to
prepare for the payment of retirement benefits to directors.
Inclusion of interest payable, etc. in noncurrent assets acquisition cost
The interest payable and loan-related ancillary cost incurred during the construction of the passenger
terminal building have been added to the acquisition cost (cumulative at the end of the fiscal year underreview -- 4,517 million yen) and recorded as part of noncurrent assets.

5.

Hedge accounting method:(1)

Hedge accounting method: Deferred hedge treatment(2)

Hedge procedure and hedge target(3)-

Hedge procedure: Derivative trading (interest swap trading)-Items hedged: Borrowings based on variable interest rate

Hedge policy: It is carried out with the aim of avoiding risks rising from future fluctuation of the interest
rate and the Company's policy not to carry out any speculative transactions.

(4)

Method to evaluate the hedge effectivenessThe assessment on the effectiveness is conducted by comparing the cumulative amount of market- 3 -movements of hedge procedures and the cumulative amount of market movements of hedge target.
Hedges to which the Treatment of Hedge Accounting for Financial Instruments that Reference LIBOR isappliedAmong the above hedge transactions, for all hedges included in the scope to which Treatment of Hedge
Accounting for Financial Instruments that Reference LIBOR (Accounting Standards Board of Japan[ASBJ] Practical Solution No. 40; March 17, 2022) the exceptional treatment specified in that Practical
Solution is applied.

6.

Standards for recording of important revenues and expenses

The Company does business in two segments: the Facilities Management and Operation Business
Segment and the Directly-Managed Business Segment. Matters such as the details of our main performanceobligations in each of these businesses and the time at which the Company normally fulfills such
performance obligations are reviewed below.
For revenues etc. related to backdating of payment to suppliers for the proportion of goods actually soldand consignment shops, in transactions in which the Company's role qualifies as that of an agent inprovision of goods or services to customers revenues are recognized in the net amount of the amountreceived from the customer minus the amount payable to the supplier.

(1)

Facilities Management and Operation Business Segment
The Facilities Management and Operation Business Segment involves mainly leasing of offices
for airlines use and shops for tenant use in international passenger terminals, passenger handling, andrental of facilities to air transport service providers, among other businesses.
Rent revenues consist mainly of revenues on rental of office and shops, which are recorded asrevenues pursuant to the Accounting Standard for Lease Transactions (ASBJ Statement No. 13;
March 30, 2007).
Passenger service facility charge (PSFC) revenues are collected from passengers under the Tokyo
International Airport Terminal Passenger Service Facility Charge (PSFC) Agreement. The Company
is obligated to allocate PSFC revenues to costs related to facilities provided for use by all passengers
and to maintain and manage the passenger terminals appropriately. These performance obligations
are satisfied upon completion of passenger air transport services provided by air transport service
providers, and revenues are recognized at the time of completion of passenger air transport services.
Regarding revenues from facility usage fees, the Company is obligated to provide services mainly
related to use of facilities and equipment such as boarding bridges, the luggage handling system, anddedicated gates for business jets. Revenues are recognized upon completion of service provision incases in which performance obligations are satisfied at a single point in time and over the period ofservice provision when they are satisfied over a certain period.

(2)

Directly-Managed Business Segment
The Directly-Managed Business Segment mainly involves operation of shops selling merchandise,restaurants, and bars.

- 4 -In the sales of merchandise, performance obligations are judged to be satisfied upon the delivery ofmerchandise to customers, and revenue on merchandise is recognized as of the point in time ofdelivery.
In the operation of restaurants and bars, performance obligations are judged to be satisfied upon theprovision of food and beverage services to customers, and revenue is recognized as of that point in
time.

II.

Notes on revenue recognition
Basic information for understanding revenues
Basic information for understanding revenues is described under Note 6, "Standards for recording of importantrevenues and expenses," in "I. Notes on Matters Related to Important Accounting Policies."

III. Notes on accounting estimates
Recoverability of deferred tax assets(i) Amount recorded on financial statements for this fiscal year
Deferred tax assets (net)

2,914 million yen

The amount before offsetting against deferred tax liabilities was 3,002 million yen.
(ii) Other information to assist in understanding the details of accounting estimates
A. Calculation methods
Based on taxable income and tax planning reflecting future earnings potential, the recoverability ofdeferred tax assets is judged for temporary differences in future deductions by considering company
categories in accordance with the Implementation Guidance on the Recoverability of Deferred Tax
Assets. Estimates of taxable income are based on business plans. Our core businesses are the leasing of
offices and other space in airport passenger terminals, the sale of merchandise to air travelers, and theprovision of food, beverages, and travel services. For this reason, our businesses are highly dependent
on the main tenants of airlines and the main customers or air travelers, and as such, our business plansproject future revenue and other figures based on the numbers of international air travelers and duty-freeunit prices of merchandise sales.
B. Major assumptions
Major assumptions of the business plans on which estimates of taxable income are based are the numbersof international air travelers and duty-free unit prices of merchandise sales accounting for large sales
figures. The numbers of international air travelers are estimated with reference to information on recent
flight performance and airlines' published future schedules. Duty-free unit prices of merchandise sales
are estimated on the basis of the actual results in the current period.
C. Impact on financial statements in the next fiscal year
Estimates of the numbers of international air travelers, an important assumption, involve a high degreeof uncertainty in the estimation, and estimated taxable income may vary because of fluctuations in thenumbers of international air travelers and duty-free unit prices of merchandise sales. Accordingly, there
is a risk that these factors could have a material impact on estimated deferred tax assets. Accordingly,
deferred tax assets could fluctuate in the event of variations in the numbers of international air travelers
assumed in business plans or in the duty-free unit prices of merchandise sales.

- 5 -IV. Notes on Balance Sheet
1.

Reported amounts are rounded down to the nearest million yen.

2.

Pledged assets
Assets pledged as collateral

Ordinary deposits
Accounts receivable - trade41,478 million yen
101 million yen

Building

79,924 million yen

Structures

864 million yen

Machinery and equipment

1,000 million yen

Separately managed penalty in trust

1,000 million yen

Liabilities corresponding to the above Current portion of long-term loans

9,594 million yen

payableLong-term loans payable

3.

Total depreciation of property, plant and equipment: 120,916 million yen

4.

Monetary claims and obligations to subsidiaries and affiliates
Monetary claims

Monetary obligations

Accounts receivable - trade

6,397 million yen

Accounts receivable - other4 million yen

Accounts payable – trade

6,513 million yen

Accounts payable - other921 million yen

Accrued expenses

24,418 million yen

Deposits received

2 million yen

Accrued interest expenses

6,816 million yen

Shareholder subordinated bonds

18,890 million yen

Long-term loans payable

15,170 million yen

Long-term lease deposit received

V.

87,696 million yen

268 million yen

Notes on Income Statement

1.

Reported amounts are rounded down to the nearest million yen.

2.

Transactions with subsidiaries and affiliates
Operating transactions

90,004 million yen

Non-operating transactions

1,470 million yen

VI. Notes on the Statement of Changes in Equity
1.

Reported amounts are rounded down to the nearest million yen.

2.

Classes and total numbers of shares of stock issued and outstanding as of the ending date of this fiscal year

Common stock

5,198 shares

Preferred stock

108 shares- 6 -VII. Notes on Tax Effect Accounting
1.

Breakdown of main causes for deferred tax assets and deferred tax liabilities[Deferred tax assets]

Retained loss

25,113 million yen

Excess depreciation loss

426 million yen

Deferred losses on hedges

190 million yen

Asset retirement obligations

118 million yen

Disapproval of accrued fixed-asset taxes payable

96 million yen

Disapproval of accrued enterprise tax payable

27 million yen

Revision to accounts receivable - trade for previous fiscal

25 million yen

years
Provision for directors' retirement benefits

10 million yen

Other

27 million yen

Deferred tax assets subtotal

26,036 million yen-22,369 million yen

Valuation reserves related to deferred tax losses-664 million yen

Valuation reserves related to total temporary differences on
future deductions
Valuation reserves subtotal-23,034 million yen

Deferred tax assets total

3,002 million yen[Deferred tax liabilities]

Asset retirement obligations

85 million yen

Other

2 million yen

Deferred tax liabilities total

88 million yen

Subtraction: Deferred tax assets - net

2,914 million yen(Note) Deferred tax losses and other deferred tax assets by carryover period(Millions of yen)
One yearor lessMore than More than More than More than More than
one but less two but less three but less four but less five years
than two
than three
than fourthan five
years

years

Deferred tax

years

Total

years
25,11325,113-22,369-22,369

2,743

2,743

losses *Valuation
reserves
Deferred tax
assets- 7 -*Amounts of deferred tax losses have been multiplied by the statutory effective tax rate.

2. Breakdown of major account items resulting in material differences between the statutory effective tax rate andthe effective tax rate after application of tax-effect accounting, if any
Statutory effective tax rate

34.59%(Adjustments)
Amounts not included in losses permanently

0.07%

Valuation reserves-65.89%Other-0.05%

Effective tax rate after application of tax-effect accounting

VIII.

Notes concerning financial instruments

1.

Matters related to the state of financial instruments-31.29%The Company's funds management is restricted to short-term deposits etc., and it raises funds throughborrowing from banks and other financial institutions and from shareholders and through bonds issued toshareholders.
Funds raised through borrowing and through bonds are used mainly as funding of capital investment. In
response to risks of interest-rate fluctuations on some borrowing, the Company executes interest-rate swap
transactions intended to stabilize the interest it pays.
Derivative transactions are limited to interest-rate swap transactions intended to avoid risks of interestrate fluctuations on borrowing.

2.

Matters related to fair market values of financial instruments etc.

Amounts recorded to the Balance Sheet as of March 31, 2024 (the date of settlement of accounts for thisperiod), fair market values, and differences between them are shown below.
Category(1) Cash on hand anddeposits(2) Shareholder
subordinated bonds(3) Long-term loans
payable(4) Derivatives

Balance Sheetamount(*1)

Fair market value(*1)(Millions of yen)
Difference

41,833

41,833-(21,030)(17,008)-4,021(113,733)-4,107(550)-(*2*3)(117,841)(550)*1: Amounts recorded as liabilities are indicated in parentheses.
*2: Long-term loans payable include 9,594 million yen in current portion of long-term loans
payable.
*3: Among the amounts recorded on the balance sheet under long-term loans payable (including thecurrent portion of long-term loans payable), interest-free loans payable is provided to the Company- 8 -under a fiscal support program by the Japanese government for improvements related toaccommodating the recovery and growth of air-travel demand pursuant to a specific law. Accordingly,
the loans are exempt from disclosure of the fair market value of the financial instruments and are notincluded in the table above.
Note: Matters concerning derivative transactions and methods of calculating fair market value of financial
instruments(1) Cash on hand and deposits
Since these are settled over the short term, their fair market values are largely equivalent to their book values.
Accordingly book values are used.
(2) Shareholder subordinated bonds
Fair market value of shareholder subordinated bonds is calculated through discounting by the rate assumed
to apply in the event of new issue of the bonds for the total amount of principal and interest.
(3) Long-term loans payable
Fair market value of long-term loans payable is calculated through discounting by the rate assumed to apply
in the event of new borrowing through similar means in the total amount of principal and interest.
(4) Derivatives-

Those to which hedge accounting does not apply: Not applicable.

-

Those to which hedge accounting applies: Contractual amounts or amounts corresponding to principal
under the contracts as of the date of settlement of accounts for each method of hedge accounting areshown below.
(Millions of yen)Hedge
accountin
g method
Processing
method(inprinciple)

Type ofderivativetransaction
Fixed
payments/variab
le receipts on
interest-rate
swaps

Main subjectof hedging

Contractual
amount etc.

Long-term
loans
payable52,639Fair market
value
-550

Method ofcalculating fairmarket value
Using prices etc.
provided by thecounterparty
financial
institution

IX. Notes on leased and other real estate
1.

Matters related to the state of leased and other real estate
The Company owns passenger terminal buildings that include leased offices and leased retail facilities andmultistorey parking facilities rented by the hour at Haneda Airport, Ota-ku, Tokyo, Japan.

2.

Matters related to fair market value etc. of leased and other real estate(Millions of yen)
Real estate including portions used

Balance Sheet amount

Fair market value

as leased and other real estate

80,800189,205

Notes:

1.

This amount includes offices and other facilities used by the Company itself.

2.

For major properties, fair market value at the end of this fiscal year is based on a real estate appraisal
report issued by a real estate appraiser.

- 9 -

X.

Notes on Related Party Transaction

1.

Main corporate shareholders etc.

Type

Name of thecompany etc.

Ratio ofvotingRelationshiprights andwith the
other
party
ownership

Transactions
FinancingTransaction
amount(Millions ofyen)

Parentcompany

Japan Airport
Terminal Co.,Ltd.

51.00%
directly
held

Balance at theend of theperiod(Millions of yen)-

Shareholder
subordinated
bonds

8,520

-

Long-termloans payable
Accruedexpenses

8,510(Note 1)

Borrowing of funds
Payments(Note 2)for goods,
consignment Businessof operation consignment(Note 3)of shops
Procurement of
etc.,
goods
borrowing(Note 4)of funds,
and rent on Interest expenses
real estate

Account Title

18,882

24,41861,880Accounts
payable – trade

6,513

1,470

Accruedinterest
expenses

4,048-

Shareholder
subordinated
bonds

5,185

-

Long-termloans payable

3,330

412

Accruedinterest
expenses
Shareholder
subordinated
bonds

1,383

-

Long-termloans payable

3,330

Interest expenses

412

1,383

Borrowing of funds-

Accruedinterest
expensesLong-termloans payable77

Accruedinterest
expenses

261-

Shareholder
subordinated
bonds

450

Long-termloans payable

1,620

Accruedinterest
expenses

335

Rent expenses onreal estate

9,240(Note 8)Financing(Note 1)Main
shareholderJapan Airlines
Co., Ltd.

16.87%
directly
held

Borrowingof funds

Borrowing of funds(Note 2)

Interest expenses

Financing(Note 1)Main
shareholderDirector

Director

ANA Holdings
Inc.

MomokoNagasakiDirector
TEPCO Energy
Partners
Incorporated
Representative
Director andPresident &CEOYoshiyuki
Hasegawa
Director
NaritaInternational
Airport
Corporation
Representative
Director andSeniorExecutive
President

16.87%
directly
held

Borrowingof funds

Borrowing of funds(Note 2)

(Note 2)
(Note 5)-

Borrowingof funds

Interest expenses

Financing(Note 1)
(Note 6)-

Borrowingof funds
Interest expenses- 10 -

100

5,185

1,610

Terms and conditions of transactions and policy on determining them
Note 1:

Financing terms and conditions are in accordance with the Shareholder Subordinated Bond Agreement
signed between the Company and its six shareholders including the above three companies on March
30, 2012, following the approval by the Board of Directors Meeting on February 23, 2012 (preparedbased on the loan terms of the Shareholders Agreement agreed among the shareholders as of theestablishment of the Company).
As for the repayment of the principal, it has been agreed that the order of the settlement of claims isafter that of repayment of preferred loans from the loan syndication based on the Limited Loan Contract
Alteration Contract signed with the loan syndication.

Note 2:

Loan terms and conditions are in accordance with the Shareholder Subordinated Loan Agreement
signed between the Company and its nine shareholders including the above three companies on March
27, 2008 following the approval by the Board of Directors Meeting on March 18, 2008 (prepared basedon the loan terms of the Shareholders Agreement agreed among the shareholders as of the establishmentof the Company).
As for the repayment of the principal, it has been agreed that the order of the settlement of claims isafter that of repayment of preferred loans from the loan syndication based on the Limited Loan Contract
Alteration Contract signed with the loan syndication.

Note 3:

Prices, and other terms and conditions for business consignment are determined through negotiation
between both companies taking into consideration details of the businesses.

Note 4:The prices, terms and conditions for procurement of goods are determined after negotiations with areference to market prices.

Note 5:This transaction was conducted for a third party by Momoko Nagasaki a director at our company, inthe capacity of a representative of TEPCO Energy Partner, Incorporated.

Note 6:This transaction was conducted for a third party by Yoshiyuki Hasegawa Shiina, a director at ourcompany, in the capacity of a representative of Narita International Airport Corporation.

Note 7:

The ratios of voting rights and other ownership are rounded down to the nearest two decimal places.

Note 8:Rent on International Terminal 2 is set on the basis of matters that include the amount of investment in
the facility by Japan Airport Terminal Co., Ltd., the amount of remodeling needed for existing terminals,
and charges for the use of state-owned properties. The Company has submitted to the Japanese
government a report based on an agreement with the government for the facility, and the government
has approved the report. Payment is deferred for April 2021 through April 2023 and for September 2023
as a measure to provide support to the Company.

- 11 -

XI. Notes on data per share
1.

Net asset per share: -4,933,907.75 yen

2.

Net profit per share: 2,349,609.13 yen

XII. Matters concerning important subsequent events

There are no applicable matters.

- 12 -