The 13th Business TermBusiness Report
From April 1, 2018
to March 31, 2019

I. Business Report
II. Balance Sheet
III. Income Statement
IV. Statement of Changes in Net Assets
V. Notes to Non-Consolidated Financial Statements※ This document has been translated from the Japanese original,for reference purposes only.
If there is any discrepancy between this translated document and the Japanese original,
the original shall prevail.

Tokyo International Air Terminal Corporation-1-

Business Report
From April 1, 2018
To March 31, 2019

1. Matters Concerning the Company’s Status(1) Progress and Results of Operations
During this fiscal year, even though a part of production and export weakened toward the end of the
fiscal year, and improvement of corporate earnings came to a standstill, the Japanese economy ingeneral continued to recover gradually including the continuous recovery of consumer spending and asteady improvement of the employment situation. Among the overseas economies, China's
consumption increase is slowing down somewhat and its economy is decelerating slowly, but theeconomy in the Americas is continuing to recover steadily, the European economy has also gradually
recovered while some weaknesses are seen. The global economy including Japan has been gradually
recovering as a whole. As for the outlook for the future, it is necessary to note the trend of trade issues,
the future of the China's economy, the influence of fluctuations of the financial and capital markets,
etc.
Under such circumstances, the number of outbound Japanese travelers exceeded last year's number,and at the same time the number of inbound international travelers, especially those from China andSoutheast Asia, continued to show high growth and reached 31 million people a year in 2018.
Regarding international flights and routes, in addition to new flights to Vienna, flights for existing
routes to Paris, Singapore, Bangkok, Hong Kong, etc. have been increased, while passenger demandhas increased steadily, the actual number of inbound and outbound travelers in the fiscal year increased
to 106% year-on-year, and as a result, the monthly number of travelers in March, the fiscal year end,reached a record high, 1.65 million passengers.

Against this backdrop, in the management of international passenger terminals, Tokyo International Air
Terminal Corporation (hereinafter referred to as "the Company") puts safety and security first in allcases, and in consideration of disaster prevention and safety, established a special structure to enhance
security during high seasons, such as Golden Week, year-end and New Year holidays, in response to
the increasing number of passengers. Moreover, the Company has been flexibly and meticulously
striving to secure the safety of customers by successively grasping/sharing in-house locations andvideo information through the use of wearable cameras which patrol guards use. Given that crisis
management necessitates preparations and drills for various emergency situations, the Company has
been striving to enhance its readiness for contingency situations, conducting stress tests in theassumption of fires and earthquakes while continuing to receive external expert advice. Also, in
pursuance of prompt on-site responses to the occurrence of disasters, the Company held 2 drills-2-

assuming the occurrence of disasters near the workplaces of employees working in the terminal as partof the general disaster prevention drills conducted throughout the entire international terminal area. In
addition, the Company dealt with increasing the readiness and the awareness of fire and disasterprevention at the airport for employees working in the building, through meetings within the terminal
with the local fire brigade team. In the fiscal year, the Company introduced programs using advanced
technologies such as experiencing fire accidents while viewing and operating a VR (Virtual Reality)
video, and learning evacuation guidance according to scenes in these drills and meetings. In terms ofaviation security, the Company continues to confirm the awareness of crisis management and fully
disseminate security measures by conducting aviation security recurrent training for all employees
working in the building. Moreover, the Company is promoting the introduction of advanced inspection
equipment with the Airline Operators' Committee (AOC) in an effort to upgrade security checks at
airports as part of the anti-terrorism initiatives promoted by the Japanese government. In April 2018,
CT (computed tomography) type inspection equipment for carry-on baggage has also been introduced
at the north security checkpoint and security checkpoints that connect between international flights.
This is the development of smart security on a full-scale basis.
In terms of facilities related to passenger services, the Company continued to work on improvementsof the convenience for and comfort of customers by revamping play equipment in kids corners in thedeparture area for customers with children before departure, in addition to further strengthening the
Wi-Fi environment in response to many requests from inbound international travelers. In addition,
responding to demands of using bicycles as a means to come to the terminal, the Company newly
established a bicycle parking lot in November.
Regarding the commercial area, the Company renovated and increased the floor space of the flagshipstore of the general duty-free stores, TIAT DUTY FREE SHOP CENTRAL, and expanded the lineup
of products as per customers' requests. Furthermore, the Company has been striving to create anenvironment in which customers can buy products smoothly by widely introducing payment systems instores including duty-free stores and branded boutiques, in order to meet the growing mobile payment
demands mainly from inbound international customers. Moreover, the Company newly opened arrival
duty-free shops in the international arrival area so that customers can buy duty-free products on arrival
which used to be available only on departure.
To maintain and improve its service quality, the Company has continued to strive to identify and takeresponse measures for issues by regularly conducting comprehensive customer surveys evaluating awide range of aspects from the building facilities and services to customer services and anonymous
investigations. In addition, the Company holds role-playing contests for its employees who attend to
customers at stores and service facilities in the building. It also continues to offer regular training inconversation with customers in English and Chinese in order to focus on customer services especiallyfor travelers from overseas.
In consideration of customer entertainment, also in the fiscal year, the Company has decorated the-3-terminal to produce the effect of Japan's four seasons, including winter illuminations, and has carriedout various campaigns. In the summer, with the support of the local area, Ota-ku, the Company held
the event called " Haneda Tsubasa Summer Festival," and hosted events to enjoy local attractive
products with summer features such as festivals/Bon Dance in the terminal. In the beginning of theyear, the event called "New Year Haneda Edo Festival" was held, and various activities unique toHaneda Airport were prepared for customers to enjoy the New Year season, such as performances andhands-on attractions set in an immersive Edo atmosphere.
Moreover, in order to convey the allure of Japanese culture/history, the Company and the National
Museum of Japanese History co-hosted an exhibition of paintings on folding screens and picture
scrolls, and events in which customers experienced the lifestyle and feeling of the Edo period bywearing Kabuto (helmet) and Jinbaori (sleeveless campaign jacket worn over armor). In addition, inorder to convey the allure of Japanese local areas/municipalities, the Company and the head federation
for the promotion of regional revitalization co-hosted "Waku Nippon" on a regular basis, and promoted
local tourist resources including landscapes and products unique to local areas together with eachmunicipality. For visitors including customers from overseas, through the conveyance of thehistory/culture and Japanese regional/local allures, the Company strives to contribute to regional
revitalization by stimulating the demand for domestic tourism using Haneda as a hub port.
As part of an effort to stimulate inbound international customers' demand, providing information
booths at international tourism expos held in Hong Kong, Singapore, Ho Chi Minh, Shanghai, Mumbai,
and Sydney continues to encourage people to use Haneda Airport as the gateway to Japan's local tourist
resources to markets overseas this year. On the other hand, in order to increase demand forinternational travel, in cooperation with the Japan Association of Travel Agents (JATA), 43
airlines/embassies of different countries/national tourism organizations/travel agencies from around theworld participated in the "Travel abroad more in 2019! From Haneda to the world!" event, whichconveyed the allure of international culture through exhibitions and travel seminars in the terminal.
The Company also strives to contribute to the increasing demand for international travel.
With respect to the universal design (UD) that the Company has emphasized since its foundation, theCompany continues to conduct evaluations and verifications while holding the UD Committee,
comprised of academics, experts with their own disabilities, airport-related operators, and theCompany's employees, every other year. In the fiscal year, the Company has brought up issues and has
promoted consideration of improvements/solutions while repeating workshops as "Spiral-up"
especially from the perspective of users with visual and hearing disabilities.
In the terminal building, in order to continue to provide high quality services and hospitality, theemployees working in the building continuously implement customer satisfaction (CS) activities while
sharing the CS philosophy. Also in the fiscal year, the Haneda Airport International Area Passenger CS
Liaison Committee planned and operated the CS award system, held CS seminars and campaigns, andissued CS bulletins, promoting relevant activities throughout the international terminal area. In
addition, the Company develops understanding and empathy among employees beyond organizational,-4-

occupational and operational frameworks, by further promoting internal branding activities throughstaff exchange meetings attended by employees working in the building as well as activities involving
government bodies related to Haneda Airport's international flights and airport-related companies. At
the same time, the Company is working to convey a unified feeling and action of hospitality to thecustomers. Also in the fiscal year, an exhibit featuring scenes of various working employees with theslogan, "WE ARE TOKYO," creates a synergistic effect in our internal branding activities while
appealing this unified feeling and action to customers too.
These various efforts and activities have been recognized by external rating agencies. Our internationaland domestic terminals have received the 5 Star Airport ranking in the Global Airport Ranking by
Skytrax, a U.K.-based service research firm, for five consecutive years. Furthermore, our airport is
ranked second in the World Best Airport, the comprehensive evaluation of airports in 2019, and inawards by category, our airport has been ranked first in the World's Cleanest Airport category for four
consecutive years and five times in total, and at the same time, our airport is also ranked first in the
newly established category, "Best PRM (Persons with Reduced Mobility)/Accessible Facilities."
As a result of the Company's above-mentioned implementation measures to improve facilities andservices, the steady operation of the terminal, and business execution with cost awareness combinedwith the increase in customers, the Company reported an operating revenue of 96,685 million yen (up8.0% year-on-year) in the fiscal year, an operating profit of 13,545 million yen (up 8.5% year-on-year),an ordinary profit of 10,262 million yen (up 28.7% year-on-year), and a net current profit of 7,077
million yen (up 30.1% year-on-year).
The business performance by each business segment is as follows:<Facilities Management and Operation Business Segment>
In the international passenger terminal, the rent revenue generated from renting offices for airlines andshop spaces for tenants was 4,821 million yen (up 0.3% year-on-year).
A passenger service facility charge (PSFC) revenue, which the Company receives from air travelers at
departure and during transit for connecting flights, was 21,034 million yen (up 5.9% year-on-year),reflecting an increase in passengers, etc.
The facility usage fee revenue from air transport service operators' use of facilities, including boarding
bridges, the luggage handling system, and gates dedicated for business jet airplanes, totaled 3,633
million yen (up 2.2% year-on-year).
Consequently, the operating revenue of the Facilities Management and Operation Businesses Segment
was 29,489 million yen (up 4.5% year-on-year).
<Directly-Managed Business Segment>
In the Merchandise Sales Business, the sales of goods generated from general duty-free stores andbranded boutiques totaled 59,368 million yen (up 9.5% year-on-year).
The sales from the Restaurant Business totaled 2,978 million yen (up 8.3% year-on-year).

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Among the other businesses, the revenues from the parking lot business and other businesses, such as
the lounge business and advertising in the building, were, respectively, 1,745 million yen (up 7.0%
year-on-year) and 3,103 million yen (up 14.1% year-on-year).
Consequently, the Directly-Managed Business Segment reported an operating revenue of 67,195
million yen (up 9.6% year-on-year).

(2) Status of Capital Expenditure
During the fiscal year, the Company made capital expenditures of 14,805 million yen in total, which
included 6,945 million yen for renovation and reconstruction works for the international passenger
terminals, etc., 1,186 million yen for the expansion and renovation construction of TIAT DUTY FREE
SHOP CENTRAL, 552 million yen for the renovation construction of CHANEL, 606 million yen for
the repair work and layout change construction, etc. of the first TIAT building, and 358 million yen for
construction to add the sub-plant heat source.

(3) Status of financing
The Company decided to issue shares for subscription by a third-party allotment in an extraordinary
general meeting of shareholders held on October 26, 2017.
Moreover, in the board of directors meeting held on the same day, the allotment of shares forsubscription was resolved, and the payment of 8,530 million yen was completed on April 27, 2018. As
a result, the capital stock and the total number of shares outstanding respectively amounted to 13,265
million yen and 5,306 shares.
In addition, as the funds for the work to extend and reconstruct the international passenger terminals,
etc. under the Alteration Contract of Limited Loan Contract signed with the loan syndication as ofDecember 28, 2017, the borrowing of 10,110 million yen was conducted on January 28, 2019.
As a result, the outstanding balance of the loan from the syndication stood at 97,077 million yen as ofthe end of the fiscal year.

(4) Issues to Be Addressed
Against the backdrop of strong passenger demand, the maintenance and improvement of safety andservice quality in congested situations during high seasons and peak hours have been recognized as
issue to be addressed, the Company will further strengthen precautions and security in the terminalbuilding, aviation security against terrorism, and disaster prevention measures against large-scaledisasters. Especially, the Company once again recognizes important issues such as evacuation guidance,
provision of stockpiles, preparations and responses including maintenance and recovery, etc. of powersources and communication functions in the assumption of a case where many people including
inbound international travelers have to stay in the terminal due to large-scale natural disasters including
earthquakes/floods. And as a business continuity plan (BCP) for the whole of Haneda Airport, while
widely cooperating with the Japanese government and related agencies/companies, the Company will
engage in specific preparations as the Company's role. Moreover, regarding cyber security, based on the-6-designation of the airport building as critical infrastructure by the Japanese government, the Company
will further improve and enhance cyber security measures.
In Haneda Airport, based on the Japanese government's policy for strengthening the functions of the
airports in the Tokyo metropolitan area, preparations are being conducted for the review of flight paths
and the enhancement of airport functions and facilities with the aim to increase Haneda Airport's
capacity by approx. 39 thousand arrivals/departures. The Company is advancing the extension andreconstruction of the terminal building to expand functions of the passenger terminal building to
respond to an increase in international passengers, reflecting the increase in the number of flights. The
construction work for adding boarding bridges is to commence service in January 2020, and theconstruction work for the terminal main building is to commence service in March 2020.
At the same time, also in the domestic area, Japan Airport Terminal Co., Ltd. is promoting therenovation of a facility for international flights on the south side of the international terminal building in
Terminal 2. The Company is planning to manage the international passenger terminal business with thecurrent international passenger terminal building after renting the facility. Based on our status change toa consolidated subsidiary of Japan Airport Terminal Co., Ltd., regarding the development andmanagement of the facilities and services of the international passenger terminal, while building an
integrated relationship in the terminal business between the domestic flights and international flights,
the Company will engage in demonstrating the convenience of hub functions for domestic andinternational flight networks, which are a major advantage Haneda Airport's has. In addition, forinternational flights, by promoting the Fast Travel system in the immigration process and introducing
advanced technologies/equipment in various passenger procedures, in order to contribute to"achievement of an advanced tourism country" as promoted by the Japanese government, theCompany will strengthen and expand terminal facilities/functions. And the Company will take all
possible measures to commence services after meeting the requirements of the facilities/functions asplanned, and provide comfortable terminal services with safety and security, to say nothing of securingsafety and maintaining its service level and quality during the construction period.
The Rugby World Cup 2019 in Japan will be held this September, and the Tokyo 2020 Olympic andParalympic Games will be held from July to September 2020. In order to contribute to smooth and safe
hosting of these international and large sports competitions, the Company will support smooth
immigration and traveling for athlete teams, event officials, spectators, and all customers. In the Tokyo
2020 Olympic and Paralympic Games, the Company will undertake airport services as a group companyof Japan Airport Terminal Co., Ltd., which is an official partner of the Olympics. Along withcorresponding to UD in accordance with the Tokyo 2020 Olympic and Paralympic Accessibility
Guidelines and planning/preparing special operations to support the smooth immigration of athlete
teams/event officials, the Company will contribute to the success of sports competitions by engaging in
the development and promotion of the Olympic and Paralympic movement.

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The Company will share information more closely than ever not only with the government, loan
syndication and other related parties but with related companies and our shareholders and ensure
detailed and sufficient consultation and coordination to robustly handle these tasks.
Fully recognizing Haneda Airport's roles and significance as an international airport located in theTokyo metropolitan area, the Company will continue to provide facilities and services of outstanding
quality (safety, convenience and comfort), including relentlessly making efforts in daily operation andmaintenance management and steadily responding to customers' opinions, feedback surveys and matterspointed out by Skytrax.

(5) Changes in Assets and Income
Category

Operating revenue

The 10th term
FY2015

The 11th term
FY2016The 12th term
FY2017The 13th term
FY201870,81977,84789,53996,685

million yen

million yen

million yen

million yen

4,316

5,417

5,440

7,077

million yen

million yen

million yen

million yen

1,186,638 yen

1,491,682 yen

1,497,353 yen

1,383,905 yen

6,348

15,84322,02138,015

million yen

million yen

million yen

million yen

Net income

Net income per share

Net assets(6) Main Businesses(i) Management and operation of the international passenger terminal building(ii) Leasing of offices and shop spaces for air transport service operators and business operators on thepremises of the airport(iii) Provision of various services including guiding the users of the international passenger terminalbuilding, operation of lounges and rental meeting rooms and operation of parking lots(iv) Sales of merchandise to the users of the international passenger terminal building(v) Operation of restaurants and coffee shops for the users of the international passenger terminal(7) Status of employees
Increase/decrease from the end of

Number of employees

the previous fiscal year
Increased by 8

63 (11)(No increase or decrease)(Note) The numbers indicate employed workforce. The numbers in parentheses are those of
non-regular employees and not included in the numbers before them.

-8-(8) Main lenders(Millions of yen)
LenderAmountDevelopment Bank of Japan Inc.

22,786

Mizuho Bank, Ltd.

16,059MUFG Bank, Ltd.

12,979Japan Airport Terminal Co., Ltd.

6,660

Sumitomo Mitsui Banking Corporation

6,462

The Bank of Yokohama, Ltd.

5,603

Shinkin Central Bank

5,328

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2. Status of the Company's shares(1) Total Number of Shares Outstanding:

5,306 shares(2) Number of Shareholders: 13(3) Shareholders
Name of shareholder

Number of shares

Japan Airport Terminal Co., Ltd.

2,706

Japan Airlines Co., Ltd.

895

ANA Holdings Inc.

895

Narita International Airport Corporation

162

TEPCO Energy Partners Incorporated

126

Secom Co., Ltd.

108

Tokyo Gas Co., Ltd.

108

Keikyu Corporation

72

Tokyo Monorail Co., Ltd.

72

NTT Data Corporation

54

Development Bank of Japan Inc.

36

Mizuho Bank, Ltd.

36

MUFG Bank, Ltd.

36

Total

5,306

(4) Other Important Matters Regarding the Shares
By the issuance of shares for subscription by a third-party allotment, the Company issued 1,706 sharesof common stock, 5 million yen per share, and Japan Airport Terminal Co., Ltd. acquired 1,310 shares,
Japan Airlines Co., Ltd. acquired 198 shares, and ANA Holdings Inc. acquired 198 shares.
Moreover, Japan Airport Terminal Co., Ltd. came to own 51.00% of the voting rights of the Company
due to capital increase through third party allocation, and the Company became a consolidated
subsidiary of Japan Airport Terminal Co., Ltd.
In addition, among the Company's 5,306 outstanding shares, the 36 shares held by Development Bankof Japan Inc., Mizuho Bank, Ltd., and MUFG Bank, Ltd. each are preferred shares with preferred
dividends.

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3. Status of Company Executives(1) Directors and corporate auditors
Corporate position

Name

Representative Director and President & CEO

Supervising area; and important position held concurrently

Katsuji Doi

Director, Japan Airport Terminal Co. Ltd.
In charge of Finance Department

Managing Director

Junichiro Kitamura

Managing Director

Arata Yasujima

In charge of Administration Department and Planning Department

Managing Director

Hiroto Kuniwake

In charge of Facilities Department, Sales Department, and International Operation Office

Managing Director

Akira Asai

External Director

Toshihiro Kawasaki

In charge of Passenger Service Department and Disaster Prevention and Security Department

Representative Director and President, TEPCO Energy
Partners Incorporated; and Director, Tokyo Electric Power Company Holdings, Incorporated

External Director

Futoshi Osada

Corporate Auditor

Masakazu Owashi

External Corporate Auditor

Tsutomu Terabayashi

External Corporate Auditor

Hiroshi Tobita

Representative Director and Senior Executive Vice President, Narita International Airport Corporation

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

Tobita & Partners LPC

Notes:
1. Toshihiro Kawasaki and Futoshi Osada 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 theCompanies Act.
3. Masakazu Owashi, Corporate Auditor, is a certified public accountant and has adequate
knowledge about finance and accounting.
4. Hiroshi Tobita, External Corporate Auditor, is an attorney-at-law specializing in corporate
laws and has adequate knowledge about finance and accounting.

(2) Amount of Compensation etc. for Directors and Corporate Auditors for the Fiscal Year under
Review
8 directors

97 million yen(of whom, 2 external
directors:

4 million yen)

4 corporate
auditors

25 million yen(of whom, 4 external 25 million yen)corporate auditors:

Note: The above-mentioned compensations etc. include the retirement benefits paid to directors andcorporate auditors who retired at the closure of the 12th General Shareholders Meeting.

(3) Matters Concerning External Officers(i) Directors
Toshihiro Kawasaki and Futoshi Osada attend the board of directors meeting held every monthand offer appropriate remarks including necessary opinions and questions concerning the-11-Company's overall management.
(ii) Corporate auditors
Masakazu Owashi, Tsutomu Terabayashi and Hiroshi Tobita offer appropriate counseling andsuggestions from the standpoint of ensuring legal compliance and fairness at the monthly board of
directors meeting and the board of auditors meeting held as necessary.

4. Accounting Auditor(1) Name of the Accounting Auditor
Ernst & Young ShinNihon LLC(2) The Amount of Compensation, etc. for the Accounting Auditor for the Fiscal Year under Review
Audit and attestation services compensation stipulated in Article 2, Paragraph 1 of the Certified
Public Accountants Act: 18 million yen(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, thestatus 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 theamount of compensation, etc. for the accounting auditor.

(4) Policy on Dismissal or Refusal of Reappointment of the Accounting Auditor
The Company's board of auditors may, in accordance with provisions stipulated in items of
Paragraph 1, Article 340 of the Companies Act, dismiss the accounting auditor, and if appropriate
auditing is deemed difficult due to the occurrence of situations that hinder the competence andindependence of the accounting auditor, shall submit a proposal for dismissing or refusing thereappointment of the accounting auditor to the General Meeting of Shareholders based on a
resolution of the board of auditors.

5. Company Structure and Policy(1) Structure to Ensure the Directors' and Employees' Execution of Duties in Compliance with theLaws and Regulations and the Articles of Incorporation as well as the Appropriateness of
Other Operations(i) Structure to ensure the directors' and employees' execution of duties in compliance with the laws andregulations and the Articles of Incorporation
1) The director in charge of Administration Department is placed in charge of compliance, and is toestablish the compliance structure and strive to understand the issues. The Administration
Department ensures the maintenance and improvement of the compliance structure.
2) The Internal Audit Department monitors the operational status of the compliance structure and-12-reports the result regularly to the representative director and president & CEO and the board ofcorporate auditors.
(ii) 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,and the stored and managed information is accessible to the directors and auditors at all times.
(iii) 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(iv) 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, inprinciple, 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 the duties and authorities
of organizational units and employees.
(v) Matters relating to employees who assist corporate auditors in their duties in the case of such request
made by the corporate auditor
1) The representative director and president & CEO assigns employees, who are independent ofbusiness execution departments, to assist with the audit conducted by the board of auditors and thecorporate auditors.
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
convocation-related work and the preparation of minutes of meetings.
(vi) Matters concerning the independence of the employees assigned to assist in the duties of thecorporate auditors from the directors
1) The transfer and evaluation of the employees assigned to assist in the corporate auditors' duties, as
stipulated in the above article, requires the consent of the board of auditors.
(vii) Structure of reporting to the corporate auditors, including the structure of reporting by directors andemployees to them-13-1) 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.
(viii) 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)
and meets once a month in accordance with the Regulations of the Board of Directors. At the board of
directors meetings, attended by the directors and corporate auditors, each director reports the status ofbusiness 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
and supervise and monitor the management, with the corporate auditors also monitoring themanagement in a similar manner.
Corporate auditors attend not only the board of directors meetings but other important internal
meetings such as the Managing Directors' Meetings. Furthermore, they directly interview directors
regarding the status of business execution and monitor on a daily operational basis any issues
concerning the status of business execution and compliance. With these structures in place, theCompany 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.

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Balance Sheet(As of March 31, 2019)(M illions of yen)

Assets
Account title
Current assets

Liabilities
AmountAccount title
65,626

AmountCurrent liabilities

19,039Cash and deposits

54,705

Accounts payable-trade

3,532

Accounts receivable - trade

5,875

Current portion of long-term loans payable

6,184

Merchandise

3,443

Accounts receivable - other

1,410

Accounts payable - other

3,265

Prepaid expenses

191

Accrued expenses

3,081

Other current assets

0

Income taxes payable

2,140(Senior loan)( 6,184)

Accrued interest expenses

25

Other current liabilities

809

Noncurrent assets

120,973

Tangible assets

117,004

Shareholder subordinated bonds

14,580

Buildings

89,328Long-term loans payable

108,893

Structures

1,054(Preferred loan)( 90,893)

Machinery and equipment

5,648(Shareholder subordinated loans)( 18,000)

2

Long-term lease deposit received

484

Tools, furniture and fixtures

5,411

P rovision for directors' retirement benefits

57

Construction in progress

15,560

VehiclesNoncurrent liabilities

129,545

Interest rate swap liabilities

Total liabilities
Intangible assets

797

Software

797

5,529
148,584

Net assets
Shareholders' equity

41,852

Capital stock

13,265

Capital surplus

13,265

3,171

Capital reserve

13,265

Deferred tax assets

2,171

Retained earnings

15,322

Separately managed penalty in trust

1,000

Investments and other assets

Total assets

186,600-15-

Other retained earnings

15,322Retained earnings brought forward

15,322

Valuation and translation adjustments△ 3,836

Deferred gains or losses on hedges△ 3,836

Total net assets

38,015

Total liabilities and net assets

186,600

Income Statement
From April 1, 2018
To March 31, 2019
(M illions of yen)Account title

AmountOpe rating re ve nue
Rents

4,821

Facility rental income

24,668

Sales of goods

59,368

Restaurant sales

2,978

Other revenue

4,849

96,685

Cost of sales
Cost of goods sold41,210Operating gross profit

55,47541,930

Selling, general and administrative expenses

Operating income

13,545Non-operating income
Interest income0

Miscellaneous income

341

341

Non-operating expenses
Interest expenses

3,577

Stock issuance expenses

30

Miscellaneous loss

16

3,624

Ordinary income

10,262Extraordinary income
Government subsidy

207

207

285

285

Extraordinary loss
Loss on retirement of noncurrent assets

Income before income taxes

10,183

Income taxes-current

3,210
△

Income taxes-deferred
Net income

103
7,077

-16-

Statement of Changes in Net Assets
From April 1, 2018
to March 31, 2019

(Millions of yen)

Shareholders' equity
Retained earnings

Capital surplus

Other retained earnings

Capital stock

Total shareholders' equity
Legal capital surplus

Total capital surplus

9,000

9,000

9,000

8,244

8,244

26,244

4,265

4,265

4,265

－

－

8,530

Net income

－

－

－

7,077

7,077

7,077

Net changes of items other thanshareholders’ equity

－

－

－

－

－

－

Total changes during the period

4,265

4,265

4,265

7,077

7,077

15,607

Balance as of March 31, 201913,265

13,265

13,265

15,322

15,322

41,852

Balance as of April 1, 2018

Retained earnings
brought forward

Total retained earnings

Changes during the period
New share issue

Valuation and translation adjustments

Deferred gains or losses Total valuation andon hedges
translation adjustments

Total net assets△ 4,223△ 4,223

22,021

New share issue

－

－

8,530

Net income

－

－

7,077

Net changes of items other thanshareholders’ equity

386

386

386

Total changes during the period

386

386

15,994

Balance as of March 31, 2019

△ 3,836△ 3,836

38,015

Balance as of April 1, 2018

Changes during the period-17-Notes to Non-Consolidated Financial Statements

I. Notes on Matters Related to Important Accounting Policies
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: Straight line method(2) Intangible 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. Criteria for recording reserves
Provision for directors' retirement benefits: The Company records the required allowance
as of the end of the term in accordance with internal rules on payment of directors'
retirement benefits to prepare for the payment of retirement benefits to directors.
4. Treatment of consumption tax, etc.
The accounting treatment of consumption tax and local consumption tax is based on the tax exclusion
method.
5. 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 (for the fiscal year under review -- 174 million
yen; cumulative at the end of the fiscal year under review -- 4,300 million yen) and recorded as part ofnoncurrent assets.
6. Hedge accounting method(1) Hedge accounting method: Deferred hedge treatment(2) Hedge procedure and hedge target
Hedge procedure: Derivative trading (interest swap trading)Items hedged: Borrowings based on variable interest rate(3) 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 omitted, as the important conditions for hedge procedures and hedge
target are the same and it is assumed in advance to fully offset the risk of interest rate fluctuations from thestart of the hedge and continuously thereafter.
II. Notes on Changes in Presentation Methods
Application of Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.
Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28, February 16,2018) etc. are applied from the beginning of the fiscal year under review, and deferred tax assets are indicated in-18-the category of investments and other assets.

III. Notes on Balance Sheet(Millions of yen)

1. The amounts are rounded down to the nearest million.
2. Pledged assets
Assets pledged as collateral

Ordinary deposits

54,379Accounts receivable – trade

Liabilities corresponding to the above

96

Buildings

89,328Structures

1,054

Machinery and equipment

1,576

Separately managed penalty in trust

1,000

Current portion of long-term loans payable

6,184

Long-term loans payable

90,893

3. Total depreciation of property, plant and equipment

70,284

4. Monetary claims and obligations to subsidiaries and affiliates
Monetary claims
Monetary obligations

Accounts receivable - trade4,132

Accounts receivable - other6

Accounts payable - trade

3,532

Accounts payable - other

1,545

Accrued expenses

2,273

Accrued interest expenses

3

Shareholder subordinated bonds

13,320Long-term loans payable

13,320Long-term lease deposit received

IV. Notes on Income Statement272(Millions of yen)

1. Reported amounts are rounded down to the nearest million yen.
2. Transactions with subsidiaries and affiliates

Operating transactions
Non-operating transactions

V.

61,467599

Notes on Statement of Change in Net Assets
1. The amounts are rounded down to the nearest thousand.
2. Type and total number of the Company’s shares outstanding as of the last day of the fiscal year underreview
Common stock

5,198 shares

Preferred stock

108 shares-19-VI. Notes on Tax Effect Accounting
Breakdown of main causes for deferred tax assets(Deferred tax assets)(Millions of yen)Accrued enterprise tax, etc.

224

Provision for directors' retirement benefits

17

Deferred losses on hedges

1,693

Other

276

Deferred tax assets subtotal

2,211

Valuation reserve△ 40

Deferred tax assets total

2,171

VII. Notes on Financial Instruments
1.

Matters regarding the status of financial instruments
The Company manages funds only in short-term deposits and procures funds through loans fromfinancial institutions such as banks as well as from the shareholders and corporate bonds issued to theshareholders.
The funds procured through loans and corporate bonds are mainly used as funds for capital investment
and stabilizing the interest expenses by carrying out interest rate swap trading against the interest rate
fluctuation risk of part of loans.
Derivative trading is limited to interest rate swap trading to avoid interest rate fluctuation risk of loans.

2.

Matters regarding market value of the financial instruments
The values on the balance sheet, market value and the difference between them as of March 31, 2019(the Company’s account settlement date for the relevant fiscal year) are as follows.

(Millions of yen)
Category

Value on theMarket value (*1)

Difference

balance sheet (*1)
(1) Cash and deposits(2) Shareholder subordinated bonds

54,705(

14,580)(－20,670)6,090(122,597)

7,519

5,529)－(*2)(3) Long-term loans payable( 115,077)(4) Derivative trading

54,705(5,529)((*1) Items that are recorded as liability are shown in parenthesis ().
(*2) Long-term loans include repayment within one year of 6,184 million yen.
Note: Matters regarding the calculation method of market value of financial instruments and derivative trading(1) Cash and deposits
They are settled in a short period of time and their market values are roughly equivalent to the book values.
Therefore, the concerned book values are used
(2) Shareholder subordinated bonds-20-

The market value of shareholder subordinated bonds is calculated by discounting the sum of the principal
and interest using the rate assumed in case of new issue.
(3) Long-term loans payable
The market value of long-term loans payable is calculated by discounting the sum of the principal andinterest using the rate assumed in case of taking out new loans.
(4) Derivative trading(i) The trading for which hedge accounting is not applied: Not applicable.
(ii) The trading for which hedge accounting is applied: The amount equivalent to the principal stipulated by
the contract amount or contract as of the settlement day for each hedge accounting method is as follows.
Method of hedge
accounting

Type ofderivative
trading

Main items
hedgedContract amount,etc.

Market value

Fundamental
processing
methodInterest rate swap
trading:
Fixed interest
payment,
variable interest
receipt

Long-term loans
payable75,630△5,529(Millions of yen)Calculation
method of thesaid market
value
The price, etc.
indicated by thecounterparty
financial institution

VIII. Notes on Real Estate for Rent, etc.
1.

Matters regarding the condition of the real estate for rent, etc.
The Company owns a passenger terminal building that includes office spaces and commercial
facilities for rent as well as a multilevel, pay-by-the-hour parking lot in Haneda Kuko, Ota-ku, Tokyo.

2.

Matters regarding the market value of the real estate for rent, etc.

(Millions of yen)

Property that includes theValue on the balance sheet

Market value

105,624

182,434

portion that is used as realestate for rent, etc.

Note 1. The value includes offices, etc. used by the Company.
Note 2. The market value of important properties as of the end of the fiscal year underreview is the amount based on the actuary reports by real estate appraisers.

-21-

IX. Notes on Related Party Transaction
1. Main corporate shareholders etc.
(Millions of yen)Type

Name of thecompany etc.

Ratio ofvotingrights andotherownership

Relationshipwith the party

Transactions

Financing(Note 1)

Transaction
value

Account title

Balance at theterm-end

6,550

Shareholder
subordinated
bonds

6,660

Long-termloans payable

6,660

Accruedexpenses

2,273

Accounts
payable – trade

3,532(Note 2)
Borrowing offunds (Note 3)

Parentcompany

Japan Airport
Terminal Co.,Ltd.

51.00%
directly
held

Procurementof goods andconsignmentof operationof stores etc.

-

Businessconsignment(Note 4)

20,135

Procurementof goods

41,331(Note 5)
Payment ofinterest

599

Accruedinterest
expensesFinancing(Note 1)
(Note 2)Mainshareholder

Mainshareholder

Japan Airlines
Co., Ltd.

ANA Holdings
Inc.

Borrowing offunds

16.87%
directly
held-

directly
held-

Payment ofinterest

299

Financing(Note 1)
(Note 2)990

Director

Representative
Director andPresident,
TEPCO
EnergyPartner,
Incorporated-

Borrowing of
funds

0

Shareholder
subordinated
bonds

3,330

Long-termloans payable

3,330

Accruedinterest
expenses-(Note 6)

-22-

3,330

299

(Note 3)

Payment ofinterest

Long-termloans payable-

Toshihiro
Kawasaki
Borrowing of
funds

3,330

Accruedinterest
expenses(Note 3)
Payment ofinterest

Shareholder
subordinated
bonds

-

(Note 3)

Borrowing offunds

16.87%

990

1

56

Long-termloans payable
Accruedinterest
expenses

0

1,260

0

Futoshi Osada

Director

Representative
Director andSeniorExecutive
President,
NaritaInternational
Airport
Corporation

Borrowing offunds-

Borrowing of
funds

-

(Note 3)(Note 7)
Payment ofinterest

72

Long-termloans payable

1,620

Accruedinterest
expenses

0

Terms and conditions of transactions and policy on determining them
Note 1: Financing terms and conditions are 5 million yen per share, and the Company issues 1,706 shares ofcommon stock. The terms and conditions were approved in an extraordinary general meeting ofshareholders held on October 26, 2017, and the payment was completed on April 27, 2018.
Note 2: 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 (prepared based on
the loan terms of the Shareholders Agreement agreed among the shareholders as of the establishment of
the Company). As for the repayment of the principal, it has been agreed that the order of the settlement ofclaims is after 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: 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 based on the loan
terms of the Shareholders Agreement agreed among the shareholders as of the establishment of theCompany). As for the repayment of the principal, it has been agreed that the order of the settlement ofclaims is after that of repayment of preferred loans from the loan syndication based on the Limited Loan
Contract Alteration Contract signed with the loan syndication.
Note 4: Prices, other terms and conditions for the business consignment are determined after consultations between
both companies while taking into consideration details of business with a reference to general terms andconditions, etc.
Note 5: The prices, terms and conditions for procurement of goods are determined after negotiations with areference to market prices.
Note 6: This transaction was conducted for a third party by Toshihiro Kawasaki, a director at our company, in thecapacity of a representative of TEPCO Energy Partner, Incorporated.
Note 7: This transaction was conducted for a third party by Futoshi Osada, a director at our company, in the capacityof a representative of Narita International Airport Corporation.
Note 8: Among the amounts indicated in the table above, transaction amounts do not include consumption tax.
Note 9: The ratios of voting rights and other ownership are rounded down to the nearest two decimal places.

X. Notes on data per share
1. Net asset per share: 7,134,186.23 yen
2. Current net profit per share: 1,383,905.29 yen
XI. Matters concerning important subsequent events
There are no applicable matters.

-23-

Supplementary Statements forthe 13th Business Term
From April 1, 2018
To March 31, 2019

Ⅰ．Supplementary Statement of the Business Report

Ⅱ．Supplementary Statement of the Financial Statements

Tokyo International Air Terminal Corporation-24-

I ．Supplementary Statement of the Business Report

1. Details of our company executives who hold a position as an executive director in another company
Refer to "3. Status of Company Executives" in the Business Report and "VI. Notes on Related Party Transaction" in
Notes to Non-Consolidated Financial Statements-25-

II ．Supplementary Statement of the Financial Statements

1. Details of tangible and intangible non-current assets

Category(Millions of yen)Book value
at thebeginning of
the period

Increase in
the term
underreview

Decline in
the term
underreview

Depreciation in theterm underreviewBook value
at the end of
the period

Total
depreciation

Acquisition
cost at the endof the period

Buildings

92,749

3,294

31

6,684

89,32847,151

136,479

Structures

1,169

58

-

173

1,054

1,057

2,111

5,819

355

-

526

5,648

3,436

9,084

3

-

-

1

2

187

189

5,391

1,967

22

1,924

5,411

18,451

23,862(105,133)(5,675)(53)(9,311)(101,444)(70,284)(171,728)

8,119

9,083

1,642

-

15,560-15,560

Total

113,252

14,759

1,696

9,311

117,004

70,284

187,289

Software

1,036

46

-

285

797

877

1,674

Type of assets

Machinery andTangible assets

equipment

VehiclesTools, furniture andfixtures(Subtotal)
Construction in

assetsIntangible

progress

Note: The main factors contributing to the increase in the term include 6,945 million for renovation andreconstruction work for the international passenger terminals, 1,186 million yen for the expansion andrenovation construction of TIAT DUTY FREE SHOP CENTRAL, 552 million yen for the renovation
construction of CHANEL, 606 million yen for the repair work and the layout change construction, etc.
of the first TIAT building, and 358 million yen for the construction for adding the sub-plant heatsource.

2. Details of the reserves(Millions of yen)

Category

Balance atthe beginningof the period

Increaseduring theterm underreview

53

16

Decline during the term underreview
Used for the
relevant
purposeOther

Balance at theend of theperiodProvision for directors'
retirement benefits

11-

Note: The reason for recording reserves and the calculation method for the amounts are described initem 3 under section I "Notes on Matters Related to Important Accounting Policies" of "Notes
to Non-Consolidated Financial Statements."

-26-

57

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

AmountRemarks

Directors' compensations

111

Employees' salaries

520

Provision for directors' retirement benefits

16

Legal welfare expenses

20

Welfare expenses

4

Transportation expenses

67

Supplies expenses

23

Furniture and fixtures

144

Utilities expenses

663

Communication expenses

89

Insurance expenses

347

Repair expenses

261

Rent expenses

4,822

Conference expenses

10Entertainment expenses

17

Taxes and public charges

1,368

Advertising expenses

491

Cleaning expenses

18

Business consignment expenses

22,742

Miscellaneous expenses

589

Depreciation

9,597

Total

41,930-27-