The 17th TermBusiness Report
From April 1, 2022 to March 31, 2023

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, 2022
To March 31, 2023

1．
(1)

Matters Concerning the Company’s Status
Progress and Results of Operations
There remains no sign of an end to the Russian invasion of Ukraine that began in February 2022, or of
the resulting tight global supplies of resources, such as energy and food. This has had major impacts on the
air travel industry as well, including forcing cancellations, cutbacks, and route changes affecting flights toand from Europe as well as continued high fuel surcharges.
The prevalence of the Omicron variant led to global growth in the COVID-19 pandemic. While the highinfectivity of Omicron resulted in massive increases in case numbers, the variant's risk of complications
was low, and immigration restrictions were eased in stages.
In addition, the trend toward easing immigration restrictions involving conditions, such as vaccinations
and negative PCR test results accelerated. Immigration restrictions were discontinued in Europe and North
America, in particular, while Japan too eased and abolished immigration caps and restrictions on activities
in stages. Beginning in October, the cap on the number of entrants to Japan was abolished, the prohibition
on individual travelers was revoked, and visa waivers were resumed as containment measures were also
eased substantially.
While conditions of demand for international travel to and from Japan in the fiscal year under review
remained challenging, with demand down 71% from pre-COVID FY 2019 figures, demand was up 1,049%
from FY 2021 to 25.86 million travelers. Conditions have recovered rapidly since October, in particular,when containment measures were eased significantly.
This gradual easing of immigration restrictions and containment measures resulted in a continual
increase and recovery in the number of travelers using international flights serving Haneda Airport. An
increasing trend in travelers was apparent in April, thanks in part to the transfer of assignments of resident
staff overseas and the entry of international trainees in specific job skills. The numbers of travelers haveincreased further since June as containment measures eased (e.g., by eliminating the requirement for
COVID-19 testing before entry for travelers from "blue"-listed countries), the maximum number oftravelers admitted to the country (from 10,000 to 20,000 per day) increased, the acceptance of foreign
tourists (and tour groups) resumed, and flights between Haneda and Seoul resumed. In response to thelarge-scale easing of restrictions beginning in October, airlines have progressively resumed and increased
flights since the winter schedule as the numbers of flights and travelers recovered in the second half toabove 70% their pre-COVID levels.
Summer flight schedules adopted at the end of March 2023 call for further resumption of and increases
in flight numbers as well as resumption of flights between Haneda Airport and China. The number of flights
exceeds the figure from prior to the COVID-19 pandemic (2019), and the recovery in passenger numbers
has advanced further.
-1-

As a result, the number of travelers (including travelers in transit) in the fiscal year was up 700% fromFY 2021 to 7.25 million/year. Steady growth is projected to continue in the future as well. Despite thecontinuing impact of geopolitical risks, such as those concerning the situation in Ukraine, the number ofpassengers can be expected to increase further.
Under such conditions, again this year, the focus of terminal management was safety and stability as
efforts continued to stop the spread of COVID-19 among terminal users and employees along with fullcooperation in providing the facilities and spaces needed for the Japanese government's enhancement of
airport quarantine measures.
As it had in FY 2021, this year as well Haneda Airport provided facilities and spaces, including 10
departure and arrival gate lounges and a concourse inside the North Satellite of Passenger Terminal 3 incooperation with the Japanese government's COVID-19 containment measures. However, these facilities
and spaces were returned in stages as containment measures were eased. As of the end of the fiscal year,
the airport was providing two gate lounges and a part of the arrival concourse in the North Satellite for suchuses, while also improving immigrant flows and convenience and enhancing the Wi-Fi environment in thearrival concourse in response to the digitalization of immigration procedures.
In addition to cooperation in containment measures, since FY 2021, we have also been leasing
approximately 900 square meters, including a space next to Counter N in the departure lobby as a
vaccination center for Japanese residents overseas (returning temporarily to Japan).
At the returned gates, we took steps to enhance interior facilities to respond steadily to recovering
passenger demand while also restoring various functions to adapt appropriately to the recovering andincreasing numbers of airline flights.
To reduce operating costs in light of the large-scale decreases in the numbers of flights and travelers due
to continued international travel restrictions during the COVID-19 pandemic, the international flightfacilities and areas in Passenger Terminal 2 were closed in their entirety, while reduced facilities andservices continued to be provided in Passenger Terminal 3. However, in response to the rising numbers offlights and travelers, the passenger facilities, shops in retail areas, and interterminal transport services,among other services, are resuming operation and extending their service hours. Together with maintaining
and recovering service provision in ways that prevent any loss of passenger convenience or comfort, wehave taken steps to make the airport even more convenience by opening new stores, such as new Dior andLouis Vuitton brand boutiques, and opening convenience stores. Some efforts also continued on the
reduction and exemption of costs, such as rents and facilities usage charges, in cooperation with airlines
and tenants.
Haneda Airport's passenger terminals have earned the highest Five-Star Airport rating for nineconsecutive years in the Skytrax (U.K.) Global Airport Ratings. It also secured first place for the 10th time
and the eighth consecutive year in the World’s Cleanest Airports category of Skytrax' world airport ratingsin 2023 as well as first place for the fifth 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, the quality of both our facilities and staff services are highly regarded in various
categories, thanks to our efforts to ascertain accurately passenger needs, which have grown increasingly-2-

diverse with environmental changes over the three years of COVID-19, and to pursue convenience andcomfort.
In addition, the new gate dedicated to international business jet flights that opened in July 2021 inresponse to expected growth in demand for business jets greatly improved convenience and processing
capacity through its design with an emphasis on a flat structure to enable smooth immigration flows andon privacy. In the fiscal year under review, this terminal saw a considerable increase in use as it served anaverage of 126 flights (total of arrivals and departures) per month and was used to meet increasingly diverse
demand, including diplomacy and athletic organizations in addition to wealthy and business travelers.
Recovering passenger volumes led to numerous cases of congested departure security checkpoints
causing lines to form that extend into the departure lobbies on certain days of the week and at certain hoursof the day. We are striving to ensure passenger convenience through such means as assigning guides toguide passengers and to organize wait lines.
Arrivals and departures by prominent personalities have increased with growing numbers of flights andpassengers. In response to increasing cases of disruption by fans gathering in lobbies awaiting the arrivalof such personalities, we have taken steps to enhance maintenance and security to maintain order inside theterminals through such means as setting up special routes for prominent personalities. In addition, in lightof the importance of education and training in order to be prepared for emergencies at all times as part ofinternational terminal risk management, drills were conducted to enable terminal employees to respond
immediately to accidents near their workplaces as part of general disaster drills conducted throughout theinternational passenger terminal zone, and air security recurrent training was conducted again this fiscal
year for all employees in the terminals as part of continuous efforts to verify awareness of crisis
management and ensure thorough understanding of security measures.

In addition, efforts to enhance cybersecurity have been implemented in light of the Japanese
government's designation of airport buildings as important infrastructure. Amid the rising riskof cyberattacks spurred by Russia's invasion of Ukraine, the structure for monitoring forunauthorized access and cyberattacks was strengthened, and related systems were enhanced,
centered on the Information Security Committee, through internal and external cooperation,
including participation in the National Cybersecurity Council.
Since its founding, the Company has stressed the universal design (UD) concept. During the fiscal year
under review, the UD Study Committee, whose membership includes experts, such as academics andexperienced practitioners, as well as experts experienced with disabilities, airport-related businesses, andCompany employees, met in February to review efforts to make the airport easier to use for people withhidden disabilities (i.e., disabilities that are not readily apparent, such as cognitive disabilities
and autism, learning disabilities, anxiety disorders, mental disorders, and visual and hearing
impairments). In addition, in March a seminar was held on customer service for people with hidden
disabilities in cooperation with airport operators and airlines from across Japan. As we haddone in FY 2021, we also published on our website our Specific Plan on Mobility Facilitation
Measures under the Barrier Free Act and continued distributing on a trial basis in March-3-

Hidden Disabilities Sunflower straps to make it easier to receive guidance and support inside
the facilities.
The Company will continue efforts to identify issues and implement related improvements

and enhancements through repeated verification on the theme of making the airport usable forall.
In the area of initiatives to maintain and increase customer satisfaction (CS), continual CS efforts areunderway based on a shared CS philosophy among employees inside the terminal, in order to deliver highquality service and hospitality. Once again this fiscal year, the Haneda Airport International Area

Passenger CS Liaison Committee carried out CS improvement activities for relevant internaland external organizations and employees through means that included publishing CS
bulletins. It also endeavored to increase CS through environmental beautification throughcleaning activities by employees inside the terminals as part of internal CS activities.
In these ways, despite continued challenging circumstances, the numbers of flights and passengers arerecovering rapidly. The Company strived to carry out business operations while maintaining and enhancing
the functions of terminal facilities, ensuring disaster prevention and air security, and improving facilities
and services while also implementing cost-saving measures. As a result, in this fiscal year the Company
reported operating revenue of 28,623 million yen (up 202.3% year-on-year), an operating loss of 12,235
million yen (vs. an operating loss of 25,263 million yen in the previous year), an ordinary loss of 16,700
million yen (vs. an ordinary loss of 30,854 million yen in the previous year), and a net loss of 16,709 million
yen (vs. a net loss of 30,994 million yen in the previous year).
The business performance by each business segment is as follows:<Facilities Management and Operation Business Segment>

In the international passenger terminal, despite continued rent reductions intended to help
lessen the burden of operating costs and provide support for tenants in FY2021, rent revenue
generated from renting offices for airlines and shop spaces for tenants was 6,092 million yen
due in part to rent on the use of spaces for COVID-19 vaccination of Japanese residing
overseas and growth in new tenants.
Passenger service facility charge (PSFC) revenue, which the Company receives from air
travelers at departure and during transit for connecting flights, was 8,687 million yen due torevision of the PSFC rate in March 2022 and a recovery in the numbers of travelers as
immigration restrictions were eased.
The facility usage fee revenue from air transport service operators' use of facilities, such asboarding bridges and the luggage handling system, totaled 1,945 million yen due to a recovery
in passenger numbers, although fixed-rate usage fees were collected at a reduced amount due
to the decrease in numbers of passengers compared to pre-COVID figures.
As a result, the operating revenue of the Facilities Management and Operation Businesses
Segment was 16,725 million yen.
-4-

Costs were reduced through partial terminal closures and revisions to operation methods inaccordance with passenger trends conducted in order to address the impact of the decrease inrevenues that has continued since FY 2021.
<Directly-Managed Business Segment>
In the Merchandise Sales Business, sales of goods generated from general duty-free stores and branded
boutiques totaled 10,118 million yen as passenger numbers recovered compared to FY 2021, the lineup of
duty-free brands was adjusted, and shops were remodeled. Sales from the Restaurant Business totaled 49
million yen while revenues from the parking lot business were 989 million yen.
Revenues from other businesses were 741 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 11,898 million yen.
In the area of costs, business consignment costs were reduced through continued reductions inmerchandise inventories, closure of some shops and shortening of business hours, and other revisions tooperation methods conducted in order to address the impact of decreased revenues that has continued since
the previous fiscal year.

(2)

Status of Capital Expenditure
During the fiscal year under review, the Company made capital expenditures of 676 million yen in total.
This figure includes 581 million yen in construction related to terminal facility maintenance and 59 million
yen in construction to remodel shops in duty-free areas.

(3)

Status of financing
Effective March 28, 2023, we requested an interest-free loan for the airport development business fromthe Civil Aviation Bureau of the Ministry of Land, Infrastructure, Transport and Tourism to support thenecessary facility improvements to adapt to the recovering and growing demand for air travel. We borrowed
643 million yen under this program. The outstanding balance of syndicate loans stood at 109,952 million
yen as of the end of the fiscal year.

(4)

Issues to Be Addressed
In May 2023, COVID-19 was recategorized a class 5 infectious disease under the Act on the Preventionof Infectious Diseases and Medical Care for Patients with Infectious Diseases. This is expected to spur
resumption of and increases in flights by airlines and a recovery in demand for international travel. Under
these conditions, in addition to maintaining and improving passenger convenience and comfort andenhancing necessary facilities and services, all while giving top priority to the safety and security ofpassengers on international flights using Haneda Airport, we also will strengthen the structures ofMerchandise Sales and other aspects of the Directly Managed Business Segment to increase sales. At thesame time, we will continue existing cost controls in collaboration with subcontractors.
In the area of operation of terminal facilities and services, in addition to enhancement of individual
facilities and services and responding steadily to airlines' resumption of and increases in flights, we also
have begun preparing for resumption of operation of the facilities for international flights in the Terminal-5-

2 building.
To adapt in a timely and appropriate manner to changes in containment measures and quarantine systems,
including Japan's designation of COVID-19 as a class 5 infectious diseases and changes to China's zeroCOVID policy, we will cooperate ion further improvements in provision of facilities and spaces andcustomer flows through close collaboration with related government agencies and institutions.
We also plan to resume facility operation and enhance services in response to rapid growth in flights andpassengers. At the same time, however, airlines and airport-related businesses are facing severe challenges
in hiring and securing human resources. We intend to monitor the state of hiring and securing humanresources in all aspects related to the airport, including at subcontractor firms, and to cooperate as
appropriate.

(5)

Important developments etc. related to the going-concern assumption
As a result of lengthy restrictions on international travel and other measures implemented by the Japanese
government in response to the global COVID-19 pandemic, Company liabilities exceeded assets as a resultof recording considerable sums of operating losses and net losses continually since two fiscal years ago.
As such, there are developments or situations leading to material doubts about the going-concern
assumption.
To resolve these developments or situations, in the area of revenues, we are striving to capture demandthrough means that include extending the business hours of duty-free shops and opening three new airport
duty-free shops, including the first Louis Vuitton and Dior airport duty-free outlets in Japan, as the numberof international travelers recovers. In addition, the revision to the passenger service facility charge (PSFC)
in March 2022 has had a major positive effect on revenues in excess of the rate of growth in travelers as
restrictions have been eased since October.
At the same time, with regard to costs, we mainly have implemented such measures as reducing fixed
costs through revisions to terminal maintenance operation methods and controlling rebounds in costs
associated with recovering sales. We also are striving to secure liquidity on hand through means that include
borrowing funds under the Japanese government's interest-free lending program for the airport
development business in March 2023.
Based on reasonable expectations for international air travel demand, including expectations concerning
the timing of COVID-19 coming under control, under our fund-raising plan reflecting the effects of theabove measures, we expect to be able to have sufficient funding through March 31, 2024. Accordingly, we
do not see any material uncertainties regarding the going-concern assumption.

-6-

(6)

Changes in Assets and Income

Category

The 14th term

The 15th term

The 16th term

The 17th term

FY2019FY2020

FY2021

FY2022

Operating revenue

88,660 million yen

8,383 million yen

9,468 million yen

28,623 million yen

Net income (loss)

4,068 million yen-34,348 million yen-30,994 million yen-16,709 million yen

772,489 yen-6,618,710 yen-5,962,823 yen

42,892 million yen

7,971 million yen-21,610 million yen

Net income (loss) per-3,214,582 yen

share

Net assets(7)-37,370 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 andentrustment 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 thatmust be noted in the Notes to Non-Consolidated Financial Statements for the fiscal year consist offinancing, 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,
the Company properly determines terms and conditions of transactions according to thecontracts with the 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
the facility's maintenance and management costs, costs for use of state-owned property, etc. inaddition to the amount invested by Japan Airport Terminal Co., Ltd. and the amount of
remodeling necessary 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-7-

with a reference to general terms and conditions, etc.
2)

The board of directors meeting's decision and the reason as to whether the transactions will
harm 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 thepremises of the airport(c)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(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

58 (4)

decreased by 2 (increased by 1)

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.

32,289 million yen

Mizuho Bank, Ltd.

25,567 million yen

MUFG Bank, Ltd.

12,683 million yen

Japan Airport Terminal Co., Ltd.

8,510 million yen

Sumitomo Mitsui Banking Corporation

6,592 million yen

The Bank of Yokohama, Ltd.

4,802 million yen

Shinkin Central Bank

4,309 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 nameownedJapan 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

(4)

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

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

Representative
Director and President& CEOManaging Director

Katsuji Doi

Hiroki KatoManaging Director
Managing Director

Shinsaku Yamaki
Toshimichi Suzuki

Managing Director

Takao Nannichi

Directors

Akihiko Shiina

Directors

Nobuhide Akimoto

Corporate Auditor
External Corporate
AuditorExternal Corporate
AuditorTeruo Miyamoto
Hiroshi Tobita
Seita Matsuda

In charge of Administration Department and Planning
Department
In charge of Finance Department
In charge of Facilities Department, Sales Department,
and International Operation Office
In charge of Passenger Service Department andDisaster Prevention and Security Department
Representative Director and Senior Executive Vice
President, Narita International Airport Corporation
Representative Director and President, TEPCOEnergyExternal Corporate Auditor, Bourbon Corporation
Tobita & Partners LPC
Managing Executive Officer, Tokio Marine &Nichido Fire Insurance Co., Ltd.

Notes:

1.

Akihiko Shiina and Nobuhide Akimoto 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 and a 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
7 directors

84 million yen(of whom, 2 external directors: 4 million yen)

4 corporate auditors

42 million yen(of whom, 4 external directors: 42 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 16th General Shareholders Meeting.

(3)

Matters Concerning External Officers(a)Directors
Akihiko Shiina and Nobuhide Akimoto attend the board of directors meeting held every month andoffer appropriate remarks including necessary opinions and questions concerning the Company's
overall management.

(b)External Corporate Auditor
Teruo Miyamoto, Hiroshi Tobita and Seita Matsuda offer appropriate counseling and suggestions- 10 -

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: 16 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, the statusof 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 the accounting 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 of shareholders on the dismissal or refusal of reappointment of the accounting auditor as it
judges necessary in such cases as when the accounting auditor is impeded from performing its duties.
In addition, in a case recognized to meet any of the descriptions under the subparagraphs of Paragraph
1 of Article 340 of the Companies Act, the board of auditors may dismiss the accounting auditor withthe 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 reasons for such dismissal.

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(a)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 isto establish the compliance structure and strive to understand the issues. The Administration- 11 -

Department ensures the maintenance and improvement of the compliance structure.
2)

The Internal Audit Department monitors the operational status of the compliance structure andreports 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,and the 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 mattersthat need to be improved with respect to the management of risk of losses, and reports theresults to the representative 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 isheld, in principle, once a month and when needed to ensure communication between the
directors and mutually 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
the Regulations 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 thepresident & 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.

(e)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 andthe corporate auditors.

2)

Pursuant to the Regulations of the Board of Auditors, the employees appointed to assist in theduties of the corporate auditors in accordance with the provisions stipulated in the preceding
paragraph conduct administrative work related to the operation of the board of auditors, suchas convocation-related work and the preparation of minutes of meetings.

(f)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.

(g)

Structure of reporting to the corporate auditors, including the structure of reporting by directors and- 12 -

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 boardof auditors 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.

(h)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
the Managing Directors' Meeting to directly grasp important matters deliberated and/or reported.

2)

The board of corporate auditors exchanges opinions with, and makes requests deemednecessary to, the representative director regarding matters to be addressed by the Company, thestatus of readiness for 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 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
such as the Managing Directors' Meetings. Furthermore, they directly interview directors regarding thestatus of business execution and monitor on a daily operational basis any issues concerning the status ofbusiness execution and compliance. With these structures in place, the Company seeks to strengthen andimprove its management monitoring function.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Note: The amounts stated in this Business Report are rounded down to the nearest unit indicated.

- 13 -

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- 14 -

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- 15 -

Statement of Changes to Shareholders’ Equity
From April 1, 2022 to March 31, 2023
(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

13,265

13,265

13,265△ 45,952△ 45,952△ 19,422

Net loss－－－△ 16,709△ 16,709△ 16,709

Net changes of items otherthan shareholders' equity

－

－

－

－

－

－

Capital reduction△ 13,165

13,165

13,165－－－

Total changes during theperiod△ 13,165

13,165

13,165△ 16,709△ 16,709△ 16,709

Balance at end of current
period100

26,43026,430△ 62,662△ 62,662△ 36,132

Changes during the period

Valuation and translation adjustments

Deferred gains orlosses on hedges

Total valuation andtranslation
adjustments△ 2,187△ 2,187△ 21,610

Net loss－－△ 16,709

Net changes of items otherthan shareholders' equity

949

949

949

Capital reduction

－

－

－

Total changes during theperiod949

949△ 15,760

Balance at end of current
period△ 1,238

1,238△ 37,370

Balance at beginning ofcurrent period

Total equity

Changes during the period△－ 16 －

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- 17 -

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.

- 18 -

(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- 19 -

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- 20 -

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.
- 21 -

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.

- 22 -

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- 23 -

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.

- 24 -

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.

- 25 -

The 17th Term
Annexed Detailed Statements toBusiness Report
From April 1, 2022 to March 31, 2023

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 "XI. Notes on Related Party Transaction."- １ -The 17th Term
Annexed Detailed Statements to
Financial Statements
From April 1, 2022 to March 31, 2023

Tokyo International Air Terminal Corporation

1.

Details of tangible and intangible non-current assets(Millions of yen)

Category

Type ofassetsProperty, plant and equipment

Building
Structures
Machineryandequipment
VehiclesTools,
furnitureand fixtures
Leasedassets(Subtotal)
Construction inprogress
Total

Intangible
assets77,853
1,821

Acquisition
cost at theend of theperiod169,675
2,862

6,933

15,829

4

194

198

1,159

4,101

23,831

27,932

―

24

48

73

122

(945)

(2)

(10,203)(105,914)(110,706)(216,620)

337

406

740

―

3

―

3

115,511

1,351

742

10,203105,917

110,706

216,623

1,375

66

―

417

1,024

―

1,024

Book value at Increase in
the beginning
the termof the period under review

DeclineDepreciation Book value atduring thein the term the end of theterm under
under review
periodreview―
7,855
91,822
―
183
1,041
―
978
8,896

99,196
1,225

481
―

9,822

51

5

―

―

1

4,850

412

2

73

―

(115,173)

SoftwareTotal
depreciation

Note: The main causes of increases in the term under review were 581 million yen in construction work related to terminal
facility maintenance and 59 million yen in construction work on the remodeling of stores in duty-free areas.

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

68

16

26

－

57

Allowance for doubtful
accounts

41

-

－

31

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

102

Employees' salaries

478

Provision for directors' retirement benefits

16

Legal welfare expenses

9

Welfare expenses

1

Transportation expenses

7

Supplies expenses

6

Furniture and fixtures

7

Utilities expenses

946

Communication expenses

82

Insurance expenses

488

Repair expenses

36

Rent expenses

11,339Conference expenses

0Entertainment expenses

1

Taxes and public charges

1,223

Donations0Advertising expenses

4

Cleaning expenses

11

Fees payable3

Temporary staffing expenses

14

Educational and training expenses

1

Business consignment expenses

10,330Miscellaneous expenses

49

Depreciation

10,622

Total

35,788- ２ -