The 18th TermBusiness Report
From April 1, 2023 to March 31, 2024

Ⅰ． Business Report
Ⅱ． Balance Sheet
Ⅲ． Income Statement
Ⅳ． Statement of Changes to Shareholders’ Equity
Ⅴ． Notes

Tokyo International Air Terminal Corporation

(Attachments)

Business Report
From April 1, 2023
To March 31, 2024

1．
(1)

Matters Concerning the Company’s Status
Progress and Results of Operations
The global COVID-19 pandemic, for which the World Health Organization (WHO) issued a state of
emergency at the end of January 2020, eased amid large-scale reductions in fatalities as a result of factors
including the progress of vaccinations around the world, and on May 5, 2023, the WHO announced an end to
the state of emergency. In response, on April 28, Japan terminated COVID-19 procedures for requiringcertificates of vaccinations and submittal of certificates of negative test results issued within 72 hours prior to
departure from foreign visitors to Japan as well as border controls that included random testing of those entering
on direct flights from China (not including Hong Kong and Macao). In addition, on May 8, Japan downgraded
the COVID-19 status under the Act on the Prevention of Infectious Diseases and Medical Care for Patients with
Infectious Diseases from a Class II to a Class V Infectious Disease.
Demand for international flights to Japan recovered gradually since last autumn as a result of gradualdevelopments that included the elimination of a maximum number of entrances, the elimination of restrictions
on unaccompanied travelers, and large-scale easing of border controls. Numerous airlines have taken advantageof the March 2020 increase to 39,000 flights/year in the number of daytime international arrivals and departures
permitted at Haneda Airport, and the 2023 summer schedule began (at the end of March last year) with a total
increase of about 40 flights, including both departures and arrivals, from the 2022 winter schedule. This
combined with the above effects of the COVID-19 downgrade to a Class V Infectious Disease resulted in a
steady increase in passenger numbers. The number of arrivals and departures per day in April last year exceeded
50,000 travelers for the first time since January 2020, and the number in July of the same year was more than
60,000 for the first time since October 2010. The monthly total number of travelers (including those in transit)
reached 1.72 million, exceeding the previous record of 1.61 million set in the August 2018. As these and otherresults show, demand has recovered dramatically. The monthly number of travelers has remained at around 1.7
million since then as well.
International Terminal 2 (T2i), which opened at the end of March 2020 but was forced to close just two
weeks later due to COVID-19, reopened on July 19 of last year in response to the rapid recovery in travel underthe 2023 summer schedule and the resulting congested and crowded conditions at Terminal 3 and to enable
more convenient transfers to and from domestic flights at Terminal 2. This reopening was carried out incooperation with the Civil Aviation Bureau, customs, immigration, and quarantine (CIQ), airlines, and otherrelated parties. T2i arrivals and departures grew from five departures and two arrivals per day at the time itreopened to 16 departures and 14 arrivals per day under the 2023 winter schedule (which began at the end of
October 2023), together with the expansion of security check lanes and the adoption of a 24 hours/day operatingschedule for the terminal building. Furthermore, T2i began its first swing operation (switching gates between- 1 -international and domestic flights depending on the time of day) with the summer 2024 schedule (which beganat the end of March this year), as a measure to address peak numbers of arrivals and departures at Terminal 3.
This increased its departures to 25 flights/day and arrivals to 21 flights/day.
Against this backdrop, annual departures and arrivals in Japan recovered rapidly in the fiscal year underreview to 79.32 million, up 207% from FY 2022 but down 12% from their pre-COVID level in FY 2019. At
the same time, a look at international flights serving Haneda Airport shows that passengers (including those intransit) totaled 20.04 million in the fiscal year under review, up 177% from FY 2022. This is the highest level
since operations began in October 2010, exceeding both the pre-COVID level of 17.02 million in FY 2019 andthe previous record of 18.39 million in FY 2018. The numbers of both flights and passengers are expected toremain high next year as well, despite continued causes for concern, such as the geopolitical risks, including
cancellations, curtailment, and rerouting of flights to and from Europe due to the Ukrainian crisis, and theeffects of the fluid exchange-rate situation.
Even as terminal operation continued to be based on health and safety in the fiscal year under review, therapid recovery in international traveler demand led to some major issues in ensuring passenger convenienceand comfort. Airlines and companies involved in airport operations proved unable to secure the return ofsufficient numbers of employees who had left due to the effects of COVID-19 and other factors, and since Aprilof last year, some days saw long lines of passengers awaiting security checks at the central security gate on thethird floor of Terminal 3 due to a shortage of personnel at the security check company. In addition, some
services, chiefly airport duty-free shops and restaurants and bars, have been forced by a shortage of employees
to remain closed or to curtail their business days and hours.
To remedy such passenger inconveniences, in addition to hiring efforts by the security check firm and shops,
the Company provided as much support as possible, including economic assistance, to related vendors, largely
alleviating the above situation by the end of the fiscal year under review.
Furthermore, in light of the importance to risk management of education and training to be ready for
emergencies at all times throughout the international passenger terminal area, employees at the terminals areprovided with drills on responding immediately to any disasters in the vicinities of their workplaces as part ofgeneral disaster training. Recurrent training on air security was also provided for all employees during the fiscal
year under review, among other continual efforts to raise awareness of risk management and to ensure athorough understanding of security measures.
In addition, during the fiscal year under review, the Company faced various issues related to safety andconvenience as the numbers of travelers recovered quickly. Safety incidents inside Terminal 3 included smoke
arising from waste grease at a restaurant, while incidents related to convenience included problems with thebaggage-handling system (BHS) associated with larger baggage volumes due to the increase in travelers.
To achieve the Company's action guideline of ensuring safety (aiming to be a reliable terminal that promises
thorough safety so that all passengers can use the airport with peace of mind), the Company plans to investigate
the causes of these incidents thoroughly and continue preventive measures, including addressing facility
obsolescence.
At the same time, to achieve both passenger safety and convenience, the Company launched in Septemberof last year a one-stop security (OSS) system for the carry-on baggage of passengers transiting Haneda Airport- 2 -from flights originating at US airports. While at first this system was restricted to transits from spots 140-143
in the Terminal 3 satellite area, it later expanded in stages to include T2i arrivals and departures and interterminal transit from T2i to Terminal 3.
After arrival, passengers using OSS-eligible flights can enter the clean areas at the departure gates for theirconnecting flights without passing through the arrivals concourse. At the same time, to prevent passengers
transiting to or arriving on non-OSS-eligible flights from heading to the OSS departure gates by mistake, it isessential to assign personnel to prevent passenger backflows in the arrivals concourse. Plans call for expanding
the OSS system to all gates in Terminal 3 next year, after completing the necessary preparations, including
securing such personnel. While at present only flights from the US are eligible for OSS, there is a movement
toward expanding the system to flights from other countries and regions as well, and the Company will aim to
improve convenience for all transit passengers using Haneda Airport.
The Company has also worked continuously to provide facilities and services to satisfy passengers using theinternational passenger terminal. New shops opening to improve passenger comfort and convenience include
Onigiri Konga (opened in April 2023), Hiroshimayaki-Okonomiyaki Machiya (May), Bon Vivant +e (June),
Japan Mastery Collection, a boutique of Japan's first provincial luxury brand in collaboration with Japan Airport
Terminal Co., Ltd. (November), and AGRO@ Fruit Parlor (March 2024), while Ferragamo, which closed in
September 2023, has reopened in a temporary facility based on a new store concept.
Supported, like scheduled flights, by booming demand, the international business jet gates served a monthly
average of 194 departures and arrivals and an annual figure of about 12,100 passengers in the fiscal year underreview, up sharply from a monthly average of 126 departures and arrivals and an annual figure of about 7,900
passengers in the previous year.
Haneda Airport's passenger terminals have earned the highest Five-Star Airport rating for 10 consecutive
years in the Skytrax (U.K.) Global Airport Rating. They also secured first place for the 11th time and the ninth
consecutive year in the World’s Cleanest Airports category of Skytrax' world airport ratings in 2024 as well as
first place for the sixth consecutive year in the World’s Best PRM/Accessible Facilities category for passenger
terminals making outstanding efforts on behalf of travelers who require mobility assistance. In these ways,
despite shortcomings in such areas as passenger security checks and shop operations systems due to the effects
of COVID-19, thanks to the cooperation of CIQ and other related parties, the quality of both our facilities andstaff services are highly regarded in a variety of categories, thanks to our efforts to accurately ascertain
passenger needs that are growing increasingly diverse with environmental changes and in the pursuit ofconvenience and comfort.
In the area of information security, efforts to enhance cybersecurity have continued since the Japanese
government's designated airport buildings as important infrastructure in 2018. In July of last year, a cyberattackon the container terminal at the Port of Nagoya caused large-scale damage to its computer systems, making it
impossible to load or unload containers for about three days. Amid the rising risk of cyberattacks, the structure
for monitoring unauthorized access and cyberattacks was strengthened, and related systems were enhanced
through internal and external cooperation, including participation in inter-industry seminars organized by the
National Center of Incident Readiness and Strategy for Cybersecurity (NISC) and our joining theTransportation Incident Information Sharing and Analysis Center Japan in the fiscal year under review.
- 3 -Since its founding, the Company has stressed the universal design (UD) concept. It has promoted related
efforts through the activities of the UD Study Committee, whose membership includes experts from academia
and experienced practitioners as well as people with disabilities, airport-related businesses, and Company
employees. In May of last year, Terminal 3 was made available for use in hands-on testing of an information
system to support people with disabilities, and in November, WHILL autonomous wheelchairs were adopted at
Terminal 3 in addition to Terminals 1 and 2, where they were already in use. In addition, comedown/cooldown
facilities were installed in two locations inside the Terminal 3 clean areas, patterned after the advanced effortsof London's two efforts (Heathrow and Gatwick) to care for passengers with developmental disabilities.
Furthermore, in February of this year, a seminar was held in cooperation with airport operators and airlines
from across Japan on serving hidden psychological, developmental, and cognitive disabilities. Together withfurther promotion of education on UD and barrier-free topics, we also published on our website our SpecificPlan on Mobility Facilitation Measures under the Barrier Free Act and continued distributing on a trial basis in
March Hidden Disabilities Sunflower straps to make it easier to receive guidance and support inside thefacilities.
The Company will continue efforts to identify and resolve issues and make other improvements throughrepeated verification on the theme of airport use by diverse users. At the same time, in the area of initiatives tomaintain and increase customer satisfaction (CS) continual CS efforts are underway based on a shared CS
philosophy among employees inside the terminal in order to deliver high-quality service and hospitality.
In these ways, while the business environment had been a highly challenging one due to COVID-19 during thethree years from FY 2020 through FY 2022, a sharp recovery in revenue, supported by booming passenger
demand since spring 2023 and efforts to curtail rising costs wherever possible led to substantial improvementin profits. As a result, in this fiscal year, the Company reported operating revenue of 82,304 million yen (up187.5% year-over-year), operating profit of 13,915 million yen (vs. an operating loss of 12,235 million yen in
the same period of the previous year), ordinary profit of 9,372 million yen (vs. an ordinary loss of 16,700
million yen in the same period of the previous year), and net profit of 12,213 million yen (vs. a net loss of
16,709 million yen in the same period of the previous year).
The business performance by each business segment is as follows:<Facilities Management and Operation Business Segment>
In the international passenger terminal, the ending at the end of October 2023 of rent reductions that had
continued since FY 2022 combined with the factors of higher commissions and rent revenue accompanying
growth in tenants and increased shop sales led to 6,156 million yen in rent revenue from renting offices forairlines and shop spaces for tenants.
Passenger service facility charge (PSFC) revenue, which the Company receives from air travelers at
departure and during transit for connecting flights, was 24,730 million yen as the number of passengers
recovered with the end of border controls.
Facility usage-fee revenue from air-transport service operators' use of facilities and equipment of boarding
bridges and the luggage handling system totaled 6,043 million yen. While this figure remains down from its
pre-COVID level due to a smaller number of passengers, the decrease from the pre-COVID level has shrunk- 4 -as passenger numbers recover.
Consequently, the operating revenue of the Facilities Management and Operation Businesses Segment was
36,930 million yen.
<Directly-Managed Business Segment>
In the Merchandise Sales Business, sales of goods generated from general duty-free stores and branded
boutiques totaled 40,664 million yen as passenger numbers recovered compared to FY 2022, the lineup of dutyfree brands was adjusted, and shops were remodeled. Sales from the Restaurant Business totaled 234 million
yen while revenues from the parking lot business were 1,703 million yen.
Revenues from other businesses were 2,772 million yen due mainly to increased lounge use as passenger
numbers recovered and to increased advertising. Consequently, the Directly Managed Business Segment
reported operating revenue of 45,374 million yen.

(2)

Status of Capital Expenditure
During the fiscal year under review, the Company made capital expenditures of 1,840 million yen in total.
This figure includes 1,380 million yen in construction related to terminal facility maintenance and 318 million
yen in construction to remodel shops in duty-free areas.

(3)

Status of financing
Effective March 11, 2024, we requested an interest-free loan for the airport development business from theCivil Aviation Bureau of the Ministry of Land, Infrastructure, Transport and Tourism to support the necessary
facility improvements to adapt to the recovering and growing demand for air travel. We borrowed 985 million
yen under this program. The outstanding balance of syndicate loans stood at 97,291 million yen as of the endof the fiscal year.

(4)

Issues to Be Addressed
After emerging from the long tunnel of the COVID-19 pandemic, a full-fledged recovery in demand forinternational air travel has begun in the fiscal year under review, and airlines' resumption and expansion offlights are expected to proceed further in the next year. While T2i began swing operations under the 2024
summer schedule to alleviate congestion at Terminal 3, the effects are only temporary, and the expansion of
capacity at Terminal 3, centered on peak early evening hours, is expected to be an issue to be addressed.
While addressing this issue head on and cooperating with contractors through efforts that put the safety andsecurity of passengers using Haneda Airport for international flights first, we will strive to maintain andimprove comfort and convenience while also carrying out functional enhancements in facilities and services.
In the Merchandise Sales Business and other aspects of the Directly Managed Business Segment as well, whileaiming for further sales growth by improving product lineups to reflect customer needs, we will also strive tocontrol costs as much as possible, to strengthen the segment's revenue foundations, and to improve the financial
standing.
In the area of the operation of terminal facilities and services in particular from the perspective of improving
Japan's international competitive strengths by expanding capacity for receiving visitors from overseas, weconsider it vital to promote public-private partnerships to enhance passenger terminal functions as an airport
serving the nation's capital city. To meet booming international travel demand, together with measures to- 5 -alleviate congestion in the departure lobby at Terminal 3 by enhancing BHS processing capacity and adding
check-in counters and self-check-in (CUSS) kiosks, we will consider functional enhancements to Haneda
Airport as a whole, including possible enhancement of T2i, in cooperation with Japan Airport Terminal Co.,Ltd.
In addition, as an operator of major infrastructure designated as important infrastructure by theJapanese government, we need to promote further improvements in organization-wide responses to theincreasing advancement and complexity of airport computer systems and the rapid increases in cyberspace
threats through efforts that include leadership, management, and system administrators. Thoroughstrengthening of information security systems is essential to the Company's business continuity and to ensuring
the safety and security of passengers as well as airlines and airport-related companies.
Fully recognizing the role and importance of Haneda Airport as an airport serving Japan's capital city, in
addition to everyday operations and management, we will strive to provide facilities and services withoutstanding levels of safety, convenience, and comfort as managers of an international passenger terminal that
contributes to making Japan a leading tourism destination and that offers increasing levels of functionality as acapital city airport while ascertaining the opinions and desires of and emphasizing communication with all
stakeholders, including airlines and airport users.

(5)

Important developments etc. related to the going-concern assumption
With the end of COVID-19 border controls, passenger numbers recovered sharply in the fiscal year underreview, and the Company recorded operating profit and net profit exceeding pre-COVID levels. However,Company liabilities have exceeded assets as a result of recording considerable sums of operating losses and net
losses continually through the previous fiscal year. As such, there are developments or situations leading tomaterial doubts about the going-concern assumption.
To resolve these developments or situations, in the area of revenue, we are striving to capture demand througha business structure in which nearly all retail shops are in operation, including reopening and extending thebusiness hours of duty-free shops centered on brand boutiques and reopening six duty-free shops in connection
with the resumption of operations at T2i in July of last year.
In addition, the luxury brand shops that opened last year are performing well with each outlet recording
record high monthly sales, and passenger service facility charge (PSFC) revenue has risen sharply as the rateof growth in the numbers of passengers in the first half was greater than expected. These factors have had major
positive effects on revenue. At the same time, with regard to costs, we have implemented measures for revising
investment plans and controlling rebounds in costs associated with recovering sales. We also are striving tosecure liquidity on hand through means that include borrowing funds under the Japanese government's interestfree lending program for the airport development business in March 2024.
Based on reasonable expectations for international air travel demand, under our fundraising plan reflecting
the effects of the above measures, we expect to be able to have sufficient funding through March 31, 2025.
Accordingly, we do not see any material uncertainties regarding the going-concern assumption.

- 6 -

(6)

Changes in Assets and Income
The 15th term

The 16th term

The 17th term

The 18th term

FY2020

FY2021

FY2022

FY2023Operating revenue

8,383 million yen

9,468 million yen

28,623 million yen

82,304 million yen

Net income (loss)-34,348 million yen-30,994 million yen-16,709 million yen

12,213 million yen-6,618,710 yen-5,962,823 yen-3,214,582 yen

2,349,609 yen

7,971 million yen-21,610 million yen-37,370 million yen

Category

Net income (loss) per
share

Net assets(7)-24,469 million yen

Important matters concerning the parent company(a)Matters concerning the parent company
The Company’s parent company, Japan Airport Terminal Co., Ltd., owns 2,706 shares (51%) of
Company stock. The Company and Japan Airport Terminal Co., Ltd. are in a consignment and entrustment
relationship regarding purchase of goods for retail sale, including duty-free items, management of stores,
etc. and in a leasing relationship for the international facilities in Terminal 2.

(b)Transactions with the parent company
Among transactions between the Company and Japan Airport Terminal Co., Ltd., transactions that must
be noted in the Notes to Non-Consolidated Financial Statements for the fiscal year consist of financing,borrowing of funds, procurement of goods, and leasing of real estate from Japan Airport Terminal Co.,
Ltd., and business consignment and payment of interest to Japan Airport Terminal Co., Ltd.
1)

Matters noted not to harm the interests of the Company when carrying out the transactions
The Company is a special-purpose company that operates the PFI business, therefore regardingtransactions with its parent company such as financing, borrowing, and payment of interest, theCompany properly determines terms and conditions of transactions according to the contracts withthe government, financial institutions, and shareholders.
Additionally, regarding goods to be sold at stores in the terminal, the Company procures goods
from Japan Airport Terminal Co., Ltd. Prices and other terms and conditions for transactions are
determined after negotiations with a reference to market prices.
Furthermore, rents on the international terminal facility in Terminal 2 are determined based on thefacility's maintenance and management costs, costs for use of state-owned property, etc. in addition
to the amount invested by Japan Airport Terminal Co., Ltd. and the amount of remodelingnecessary for existing terminal facilities.
Furthermore, prices, other terms and conditions for the business consignment are determined after
consultations between both companies while taking into consideration details of business with areference to general terms and conditions, etc.

2)

The board of directors meeting's decision and the reason as to whether the transactions will harm
- 7 -the Company's income
For the transactions, the board of directors meeting of the Company makes a final decisionindependent of its parent company based on internal regulations, and it has decided that thetransactions will not harm the Company's income.
3)

The opinions in the case where the decision of the board of directors meeting is different from
opinions of external directors
There are no applicable matters.

(8)

Main Businesses(a)Management and operation of the international passenger terminal building(b)

Leasing of offices and shop spaces for air transport service operators and business operators on the premisesof the airport(c)Provision of various services including guiding the users of the international passenger terminal building,operation of lounges and rental meeting rooms and operation of parking lots(d)Sales of merchandise to the users of the international passenger terminal building(e)Operation of restaurants and coffee shops for the users of the international passenger terminal(9)

Status of employees
Increase/decrease from the end of

Number of employees

the previous fiscal year

62 (4)

increased by 4

Note: The numbers indicate employed workforce. The numbers in parentheses are those of non-regular employees
and not included in the numbers before them.

(10)

Main lenders
Lenders

AmountDevelopment Bank of Japan Inc.

29,809 million yen

Mizuho Bank, Ltd.

24,087 million yen

MUFG Bank, Ltd.

11,446 million yen

Japan Airport Terminal Co., Ltd.

8,510 million yen

Sumitomo Mitsui Banking Corporation

5,959 million yen

The Bank of Yokohama, Ltd.

3,911 million yen

Japan Airlines Co., Ltd.

3,330 million yen

ANA Holdings Inc.

3,330 million yen

Shinkin Central Bank

3,321 million yen

- 8 -

2.

Status of the Company's shares(1)

Total Number of Shares Outstanding: 5,306 shares(2)

Number of shareholders: 13(3)

Shareholders
Number of shares

Shareholder name

(4)

owned

Japan Airport Terminal Co., Ltd.

2,706 shares

Japan Airlines Co., Ltd.

895 shares

ANA Holdings Inc.

895 shares

Narita International Airport Corporation

162 shares

TEPCO Energy Partners Incorporated

126 shares

Secom Co., Ltd.

108 shares

Tokyo Gas Co., Ltd.

108 shares

Keikyu Corporation

72 shares

Tokyo Monorail Co., Ltd.

72 shares

NTT Data Corporation

54 shares

Development Bank of Japan Inc.

36 shares

Mizuho Bank, Ltd.

36 shares

MUFG Bank, Ltd.

36 shares

Total

5,306 shares

Other Important Matters Regarding the SharesAmong the Company's 5,306 outstanding shares, the 36 shares held by Development Bank of Japan Inc.,
Mizuho Bank, Ltd., and MUFG Bank, Ltd. each are preferred shares with preferred dividends.

- 9 -

3.

Status of Company Executives(1)

Directors and corporate auditors
Corporate position

Name

Representative
Director and President& CEOManaging Director
Managing Director

Masatoshi Akahori

Managing Director

Daisuke Tokubu

Managing Director

Atsushi Maeda

Directors
Directors

Shinsaku Yamaki
Takao Nannichi

Yoshiyuki
Hasegawa
Momoko Nagasaki

Supervising area; and important position held
concurrently
Director, Japan Airport Terminal Co. Ltd.

In charge of Finance Department
In charge of Passenger Service Department andDisaster Prevention and Security Department
In charge of Facilities Department, Sales Department,
and International Operation Office
In charge of Administration Department and Planning
Department
Representative Director and Senior Executive Vice
President, Narita International Airport Corporation
Representative Director and President, TEPCOEnergyFull-Time Executive Director, Tokyo Electric Power
Holdings, Inc.

Corporate Auditor
External Corporate
AuditorExternal Corporate
AuditorTeruo Miyamoto
Hiroshi Tobita
Yutaka Mingaku

Tobita & Partners LPC
Managing Executive Officer, Tokio Marine &Nichido Fire Insurance Co., Ltd.

Notes:

1.

Yoshiyuki Hasegawa and Momoko Nagasaki are external directors stipulated in Article 2-15 of the Companies Act.

2.

All three corporate auditors are external corporate auditors stipulated in Article 2-16 of the Companies Act.

3.

Standing Corporate Auditor Teruo Miyamoto possesses considerable knowledge of finance and accounting after

having served as a representative managing director of the Japan Audit & Supervisory Board Members Association anda member of the Audit Subcommittee of the Financial Services Agency's Business Accounting Council.
4.

Corporate Auditor Hiroshi Tobita is an attorney at law and possesses considerable knowledge of legal matters as a

specialist in internal controls and corporate governance.

(2)

Amount of Compensation etc. for Directors and Corporate Auditors for the Fiscal Year under

Review
12 directors

134 million yen(of whom, 4 external directors: 8 million yen)

4 corporate auditors

19 million yen(of whom, 4 external directors: 19 million yen)

Note: Amounts of compensation etc. of directors and auditors include the retirement benefits paid to corporate
auditors who retired at the closure of the 17th General Shareholders Meeting.

(3)

Matters Concerning External Officers(a)Directors
Yoshiyuki Hasegawa and Momoko Nagasaki attend the board of directors meeting held every month andoffer appropriate remarks including necessary opinions and questions concerning the Company's overallmanagement.

- 10 -

(b)External Corporate Auditor
Teruo Miyamoto, Hiroshi Tobita and Yutaka Mingaku offer appropriate counseling and suggestions fromthe standpoint of ensuring legal compliance and fairness at the monthly board of directors meeting andthe board of auditors meeting held as necessary.

4.

Accounting Auditor(1)

Name of the Accounting Auditor
Ernst & Young ShinNihon LLC

The Amount of Compensation, etc. for the Accounting Auditor for the Fiscal Year under Review(2)

Audit and attestation services compensation stipulated in Article 2, Paragraph 1 of the Certified Public
Accountants Act: 18 million yen
The Company paid no compensation to the Accounting Auditor other than as stipulated in Article 2,
Paragraph 1, of the Certified Public Accountants Act.

(3)

Reasons for the Board of Auditors Consent to the Compensation, etc. of the Accounting Auditor
The Company's board of auditors, after considering the accounting auditor's audit plan details, the status of
the accounting auditing work executed and the grounds for the calculation of the quoted compensation amount,consents under Paragraph 1, Article 399 of the Companies Act, to the amount of compensation, etc. for theaccounting auditor.

(4)

Policy on Dismissal or Refusal of Reappointment of the Accounting Auditor
The Company's board of auditors makes decisions on the proposals for submittal to the general meeting ofshareholders on the dismissal or refusal of reappointment of the accounting auditor as it judges necessary insuch cases as when the accounting auditor is impeded from performing its duties. In addition, in a caserecognized to meet any of the descriptions under the subparagraphs of Paragraph 1 of Article 340 of theCompanies Act, the board of auditors may dismiss the accounting auditor with the consent of all corporate
auditors. In such a case, a corporate auditor chosen by the board of auditors shall report to the first general
meeting of shareholders held after the dismissal of the accounting auditor concerning the fact of and the reasonsfor such dismissal.

5.

Company Structure and Policy
Pursuant to the Companies Act and the enforcement regulations thereto, the Company has established a Basic
Policy on Internal Controls through a resolution adopted by the Board of Directors. This policy is described under(1) below. In its meeting held March 28, 2024, the Board of Directors resolved to revise this Basic Policy on
Internal Controls partially with regard to the structures for ensuring the propriety of operations of the group ofcompanies and the efficacy of auditing by the corporate auditors. The content below reflects these revisions.

(1) Structure to Ensure the Directors' and Employees' Execution of Duties in Compliance with the Laws
and Regulations and the Articles of Incorporation as well as the Appropriateness of Other
Operations- 11 -

(a)Structure to ensure the directors' and employees' execution of duties in compliance with the laws andregulations and the Articles of Incorporation
The director in charge of Administration Department is placed in charge of compliance, and is to1)establish the compliance structure and strive to understand the issues. The Administration
Department ensures the maintenance and improvement of the compliance structure.
The Internal Audit Department monitors the operational status of the compliance structure and2)reports the result regularly to the representative director and president & CEO and the board ofcorporate auditors.
(b)Structure related to storage and management of information concerning the execution of duties bydirectors
Information related to the execution of duties by directors is recorded, stored and managed inaccordance with the Regulations of the Board of Directors and Document Management Regulations, andthe stored and managed information is accessible to the directors and auditors at all times.

(c)

Regulations and other structures concerning the management of risk of losses
1)

A risk management structure will be established, with supervising departments determined
respectively for individual risks related to compliance, disaster, business, information security, etc.

2)

The Audit Department conducts regular internal audits of departments, points out any matters thatneed to be improved with respect to the management of risk of losses, and reports the results to therepresentative director and president & CEO and corporate auditors(d)Structure for ensuring efficient execution of duties by directors
1)

With the Regulations of the Board of Directors established, the board of directors meeting is held,
in principle, once a month and when needed to ensure communication between the directors andmutually monitor the execution of duties in accordance with laws and ordinances.

2)

The important matters that must be resolved at the board of directors meeting are stipulated in theRegulations of the Board of Directors. Such matters will be resolved at the board of directors
meeting after being deliberated at the Managing Directors' Meeting, which comprises the president& CEO and the standing directors.

3)

A supervising director is assigned to each of the organizational units. Organizational
Regulations and Regulations for Official Authority have been established that specify theduties and authorities of organizational units and employees.

(e)Structure for ensuring the propriety of operations of the group of companies consisting of the Company
and its parent company
1)

An autonomous internal controls system is maintained while respecting the Group management
policies of the parent company.

2)

Transactions between the Company and its parent company are conducted appropriately while
ensuring fair and reasonable transactions.

(f)Matters concerning the independence of the employees assigned to assist in the duties of the corporate
auditors from the directors
1)

When so requested by the board of auditors or the corporate auditors, the representative director andpresident & CEO assigns employees who are independent of the business execution departments
to assist with audits conducted by the board of auditors and the corporate auditors.
- 12 -

2)

Pursuant to the Regulations of the Board of Auditors, the employees appointed to assist in the dutiesof the corporate auditors in accordance with the provisions stipulated in the preceding paragraphconduct administrative work related to the operation of the board of auditors, such as convocationrelated work and the preparation of minutes of meetings.

(g) Matters concerning the independence of the employees assigned to assist in the duties of the corporate
auditors from the directors
1)

The transfer and evaluation of the employees assigned to assist in the corporate auditors' duties, as
stipulated in the preceding article, requires the consent of the board of auditors.

(h)Structure for ensuring the effectiveness of instructions made by the corporate auditors to employees
assisting the corporate auditors
1)

Employees appointed to assist in the duties of corporate auditors under (f) above shall be subject tothe sole command and control of corporate auditors.

Structure of reporting to the corporate auditors, including the structure of reporting by directors and(i)employees to them1)

In addition to statutory matters, the Company is establishing a structure where directors andemployees report any matters that might have a significant impact on the Company to the board ofauditors in a timely manner.

2)

Pursuant to the Regulations of the Board of Auditors, the board of auditors may seek reports asnecessary from accounting auditors, directors, and employees in the internal audit departments etc.,
and others.

(j)Structure for protecting parties who have submitted reports to the corporate auditors fromdisadvantageous treatment as a result of such reports
1)

Any and all disadvantageous treatment of parties who have submitted reports to the corporate
auditors as a result of such reports is prohibited.

(k)

Matters related to procedures for prepayment or refunding of costs incurred in the performance of theduties of corporate auditors and other policies related to processing of costs or obligations airing fromthe performance of such futures
1)

When a corporate auditor has submitted a claim for costs incurred in the performance of assigned

duties, such claim will be accepted unless the associated costs are inappropriate(l)Structure to ensure the effectiveness of audits conducted by the corporate auditors
1)

The Company has a structure in place where the corporate auditors attend the board of directors
meeting and, when necessary, offer opinions. They also attend important meetings including theManaging Directors' Meeting to directly grasp important matters deliberated and/or reported.

2)

The board of corporate auditors exchanges opinions with, and makes requests deemed necessary to,
the representative director regarding matters to be addressed by the Company, the status of readinessfor audits by corporate auditors, and important audit-related issues.

(2)

Overview of the Operational Status of the Structure for Ensuring the Appropriateness of Operations
The Company's board of directors is comprised of seven directors (of whom two are external directors) andmeets once a month in accordance with the Regulations of the Board of Directors. At the board of directors- 13 -

meetings, attended by the directors and corporate auditors, each director reports the status of business execution.
The board of directors meetings also discusses and resolves important matters.
At the meetings, the external directors participate in the resolutions from an independent perspective andsupervise and monitor the management, with the corporate auditors also monitoring the management in asimilar manner.
Corporate auditors attend not only the board of directors meetings but other important internal meetings suchas the Managing Directors' Meetings. Furthermore, they directly interview directors regarding the status ofbusiness execution and monitor on a daily operational basis any issues concerning the status of businessexecution and compliance. With these structures in place, the Company seeks to strengthen and improve its
management monitoring function.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Note: The amounts stated in this Business Report are rounded down to the nearest unit indicated.

- 14 -

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- 15 -

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- 16 -

Statement of Changes to Shareholders’ Equity
From April 1, 2023 to March 31, 2024
(Millions of yen)
Shareholder's equity
Capital surplus

Capitalization

Balance at beginning ofcurrent period

Retained earnings
Other retained
earnings

Legal capitalsurplus

Total capital surplus

Retained earnings
brought forward

Total shareholders'equityTotal retained
earnings

100

26,43026,430△ 62,662△ 62,662△ 36,132

Net loss－－－

12,213

12,213

12,213

Net changes of items otherthan shareholders' equity

－

－

－

－

－

－

Total changes during theperiod－－－12,213

12,213

12,213

Balance at end of current
period100

26,43026,430△ 50,449△ 50,449△ 23,919

Changes during the period

Valuation and translation adjustments

Deferred gains orlosses on hedges

Total valuation andtranslation
adjustments△ 1,238△ 1,238△ 37,370

Net loss－－

12,213

Net changes of items otherthan shareholders' equity

688

688

688

688

688

12,901550△ 24,469

Balancecurrent

at

beginning of
periodTotal equity

Changes during the period

Total changes during theperiodBalance at end of current
period△550△－ 17 －

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- 18 -

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.

- 19 -

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.

- 20 -

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- 21 -

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- 22 -

*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- 23 -

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.

- 24 -

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- 25 -

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.

- 26 -

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.

- 27 -

The 18th Term
Annexed Detailed Statements toBusiness Report
From April 1, 2023 to March 31, 2024

Tokyo International Air Terminal Corporation

1.

Details of our company executives who concurrently serve as an executive director in another company
Refer to "3. Status of Company Executives" in the Business Report and "X. Notes on Related Party Transaction."－１－

The 18th Term
Annexed Detailed Statements to
Financial Statements
From April 1, 2023 to March 31, 2024

Tokyo International Air Terminal Corporation

Details of tangible and intangible non-current assets

1.

(Millions of yen)Type ofassetsBook value
at thebeginning of
the period

Increase in
the term
underreview

Declineduring theterm underreview

Depreciationin the term
underreviewBook value
at the end of
the period

Total
depreciation

Acquisition
cost at theend of theperiodBuilding

91,822

944

7

7,915

84,84485,768

170,613Structures

1,041

1

－

178

864

1,999

2,864

Machineryandequipment

8,896

162

1

978

8,078

7,911

15,990

Vehicles

4

－

－

1

2

195

198

4,101

597

7

1,112

3,579

24,94328,522

48

－

－

24

24

98

122

(Subtotal)(105,914)(1,706)(16)(10,210)(97,394)(120,916)(218,311)

Construction inprogress

3

607

508

－

102

－

102

Total

105,917

2,314

524

10,21097,496

120,916

218,413

Software

1,024

50

－

412

662

－

662

Category

Property, plant and equipment

Tools,
furnitureandfixtures
LeasedassetsIntangible assets

Note: The main causes of increases in the term under review were 1,380 million yen in construction work related toterminal facility maintenance and 318 million yen in construction work on the remodeling of stores in duty-freeareas.

2.

Details of the reserves(Millions of yen)

Decline during the term underreview
Used for the
relevant
Other
purposeStartingbalance

Increase in
the term
under review

Provision for directors'
retirement benefits

57

16

43

－

31

Allowance for doubtful
accounts

9

－

－

9

－

Category

Balance at theend of theperiodNote: The reason for recording reserves and the calculation method for the amounts are described in item 3 under
section I "Notes on Matters Related to Important Accounting Policies."

－１－

3.

Details of selling, general and administrative expenses(Millions of yen)Account Title

AmountRemarks

Directors' compensations

112

Employees' salaries

533

Provision for directors' retirement benefits

16

Legal welfare expenses

8

Welfare expenses

2

Transportation expenses

15

Supplies expenses

28

Furniture and fixtures

44

Utilities expenses

1,048

Communication expenses

87

Insurance expenses

533

Repair expenses

62

Rent expenses

11,396

Conference expenses

2Entertainment expenses

15

Taxes and public charges

1,185

Donations

1

Advertising expenses

39

Cleaning expenses

16

Fees payable

1,322

Temporary staffing expenses

17

Educational and training expenses

2

Business consignment expenses

21,60095

Miscellaneous expenses
Depreciation

10,627

Total

48,819－２－