Balance Sheet(As of March 31, 2023)(Millions of yen)
Assets
Account Title
Current assets
Cash on hand anddeposits
Accounts receivable trade
Merchandise
Accounts receivable otherPrepaid expenses

Liabilities
Account Title

Amount42,44135,302
4,576
1,728

AmountCurrent liabilities

42,823

Accounts payable – trade
Current portion of long-termloans payable(Senior loan)

2,427
9,389
( 9,389)571

Accounts payable - other17

Accrued expenses

Supplies

209

Income taxes payable

Other
Allowance for doubtful
accounts (current)

45

Accrued interest expenses

5,384

△9

Lease obligations (current)

12

Other

677

Noncurrent assets
Property, plant andequipment
Building

107,950

Structures

1,041

Machinery and equipment

8,896

VehiclesTools, furniture andfixtures
Leased assets
Construction in progress

105,917
91,822

4
4,101
48
3

Intangible assets

1,024

Software1,024

Investments and otherassetsSeparately managed
penalty in trust
Other

8

24,098

Noncurrent liabilities
Shareholder subordinatedbonds
Long-term loans payable(Senior loan)(Shareholder
subordinated loans)Long-term lease deposit
received
Unearned revenue
Provision for directors'
retirement benefits
Interest-rate swap liabilities
Lease obligations (noncurrent)
Asset retirement obligations(non-current)
Total liabilities

Shareholder's equity- 1 -21,030121,757( 101,207)( 20,550)
481
21
57
1,238
12
341
187,762△36,132
100

Capital surplus

26,430Retained earnings

150,392

144,939

Capitalization

Legal capital surplus

Total assets

3

Net assets

1,008
1,000

828

26,430△ 62,662

Other retained earnings
Retained earnings
brought forward
Valuation and translation
adjustments
Deferred gains or losses onhedgesTotal equity△ 62,662

Total liabilities and net assets

150,392△ 62,662△ 1,238△ 1,238△ 37,370

Income Statement
From April 1, 2022 to March 31, 2023
(Millions of yen)Account Title

AmountOperating revenue
Rents

6,092

Facility rental income

10,633

Sales of goods

10,118

Restaurant sales

49

Other revenue

1,730

28,623

Cost of sales
Cost of goods sold

5,071

Operating gross profit

23,552

Selling, general, andadministrative expenses

35,788Operating loss

△ 12,235

Non-operating income
Interest income0

Miscellaneous income

332

332

Non-operating expenses
Interest expenses

4,765

Fees payable

30

Miscellaneous losses

1

4,797
△ 16,700

Ordinary loss
Extraordinary loss
Loss on retirement of noncurrent assets

44△ 16,705

Loss before income taxes
Income taxes - current

33△ 16,709

Net loss- 2 -Notes
Notes on Matters Related to Important Accounting Policies

I.

1.

Criteria and methods for evaluating assets(1)

Derivatives: Market value method(2)

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

2.

Method of depreciation of noncurrent assets(1)

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

(3)

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

3.

Criteria for recording reserves(1)

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 ofdefault, considering the possibility of recovery for each claim individually.

(2)

Provision for directors' retirement benefits: The Company records the required allowance as of theend 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.

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 -- million yen;cumulative at the end of the fiscal year under review -- 4,517 million yen) and recorded as part ofnoncurrent 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-3-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
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 is appliedAmong the above hedge transactions, for all hedges included in the scope to which Treatment ofHedge Accounting for Financial Instruments that Reference LIBOR (Accounting Standards Board ofJapan [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 in provisionof goods or services to customers revenues are recognized in the net amount of the amount received fromthe 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 forairlines 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.

-4-

(2)

Directly-Managed Business Segment
The Directly-Managed Business Segment mainly involves operation of shops selling merchandise,restaurants, and bars. In sales of merchants, performance obligations are judged to be satisfied upondelivery of merchandise to customers, and revenues are recognized as of that point in time.
In operation of restaurants and bars, performance obligations are judged to be satisfied upon
provision of food and beverage services to customers, and revenues are recognized as of that point in
time.

7.

Additional information
Impact of the COVID-19 pandemic
Regarding prospects for a recovery from the effects of COVID-19 in numbers of air travelers,international flights are expected to recover to pre-COVID-19 levels of FY2019 during FY2023.

Notes on revenue recognition

II.

Basic information for understanding revenues
Basic information for understanding revenues is described under Note 7, "Standards for recording ofimportant revenues and expenses," in "I. Notes on Matters Related to Important Accounting Policies."

III.

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 - trade35,118 million yen
81 million yen

Building

86,556 million yen

Structures

1,041 million yen

Machinery and equipment
Separately managed penalty in trust
Liabilities corresponding to the above Current portion of long-term loans

458 million yen
1,000 million yen
9,389 million yen

payableLong-term loans payable

3.

Total depreciation of property, plant and equipment: 110,706 million yen

4.

Monetary claims and obligations to subsidiaries and affiliates
Monetary claims

Monetary obligations

100,563 million yen

Accounts receivable - trade

2,800 million yen

Accounts receivable - other4 million yen

Accounts payable – trade

2,427 million yen

Accounts payable - other426 million yen

Accrued expenses-5-21,654 million yen

Shareholder subordinated bonds

18,890 million yen

Long-term loans payable

15,170 million yen

Long-term lease deposit receivedIV.

267 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

30,826 million yen

Non-operating transactions

1,291 million yen

Notes on the Statement of Changes in Equity

V.
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

VI.

Common stock

5,198 shares

Preferred stock

108 shares

Notes on Tax Effect Accounting
Breakdown of main causes for deferred tax assets and deferred tax liabilities[Deferred tax assets]
Retained loss

28,386 million yen

Excess depreciation loss

463 million yen

Deferred losses on hedges

428 million yen

Asset retirement obligations

118 million yen

Disapproval of accrued enterprise tax payable

26 million yen

Revision to accounts receivable - trade for previous fiscal

25 million yen

years
Provision for directors' retirement benefits

19 million yen

Allowance for doubtful accounts

3 million yen

Other

26 million yen

Deferred tax assets subtotal

29,498 million yen

Valuation reserve-29,402 million yen

Deferred tax assets total

96 million yen[Deferred tax liabilities]
Asset retirement obligations

93 million yen

Other

2 million yen

Deferred tax liabilities total

96 million yen

Subtraction: Net amount of deferred tax liabilities- million yen

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VII.
1.

Notes concerning financial instruments
Matters related to the state of financial instruments
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, 2023 (the date of settlement of accounts for thisperiod), fair market values, and differences between them are shown below.
(Millions of yen)
Category

Balance Sheetamount(*1)

Fair market value(*1)

Difference(1) Cash on hand anddeposits

35,30235,302-(2) Shareholder
subordinated bonds(21,030)(18,087)-2,942(3) Long-term loans
payable(*2)(130,502)(127,246)-3,255(1,238)(1,238)-(4) Derivatives*1: Amounts recorded as liabilities are indicated in parentheses.
*2: Long-term loans payable include 9,389 million yen in current portion of long-term loans payable.

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 theirbook 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 andinterest.

(4)

Derivatives-

Those to which hedge accounting does not apply: Not applicable.
-7-

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 are shown 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
payable57,458Fair market
value-1,238

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

VIII. 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
and multistorey 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

87,599198,579

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 estateappraisal report issued by a real estate appraiser.

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IX.
1.

Notes on Related Party Transaction
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

Rent expenses onreal estate(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

Balance at theend of theperiod8,706

21,652

12,879Accounts
payable – trade

2,427

1,291

Accruedinterest
expenses

2,577

Shareholder
subordinated
bonds

5,185

Long-termloans payable

3,330

Accruedinterest
expenses
Shareholder
subordinated
bonds

971

9,240

(Note 8)Financing(Note 1)

Borrowing of funds
MainshareholderJapan Airlines
Co., Ltd.

16.87%
directly
held(Note 2)

Borrowingof funds

Interest expenses

Financing

410(Note 1)

Borrowing of funds
Mainshareholder

ANA Holdings
Inc.

Director

Nobuhide
AkimotoDirector
TEPCO Energy
Partners
Incorporated
Representative
Director andPresident &CEO

Director

Akihiko Shiina
Director
NaritaInternational
Airport
Corporation
Representative
Director andSeniorExecutive
President

16.87%
directly
held(Note 2)

Borrowingof funds

Interest expenses

Borrowing of funds

410-(Note 2)
(Note 5)Interest expenses-(Note 1)
(Note 6)

Interest expenses-

Borrowingof funds-9-

Long-termloans payable

3,330

Accruedinterest
expensesLong-termloans payable

971
1,610

77

Borrowingof funds

Financing

5,185

99

Accruedinterest
expenses

183

Shareholder
subordinated
bonds

450

Long-termloans payable

1,620

Accruedinterest
expenses

235

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 threecompanies 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 of claims
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 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 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 of claims
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:

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 witha reference to market prices.

Note 5:This transaction was conducted for a third party by Nobuhide Akimoto a director at our company,in the capacity of a representative of TEPCO Energy Partner, Incorporated.

Note 6:This transaction was conducted for a third party by Akihiko Shiina, a director at our company, inthe 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:Rents on the international terminal facility in Terminal 2 are determined based on the facility's
maintenance and management costs, costs for use of state-owned property, etc. in addition to theamount invested by Japan Airport Terminal Co., Ltd. and the amount of remodeling necessary forexisting terminal facilities. In addition, the Company reports rents to the Japanese government andobtains its approval, based on an agreement with the government concerning the facility. Paymentof rents has been deferred until Company financial results have stabilized, as a measure to support
the Company.

- 10 -

Notes on data per share

X.
1.

Net asset per share: -7,403,031.90 yen

2.

Net loss per share: -3,214,582.96 yen

XI.

Matters concerning important subsequent events
There are no applicable matters.

- 11 -