The 16th TermBusiness Report
From April 1, 2021 to March 31, 2022

I.
II.
III.
IV.
V.

Business Report
Balance Sheet
Income Statement
Statement of Changes to Shareholders’ Equity
Notes

Tokyo International Air Terminal Corporation

Business Report
From April 1, 2021 to March 31, 2022

1.

Matters Concerning the Company’s Status(1)

Progress and Results of Operations
International travel restrictions continued over a lengthy period, as COVID-19 variants led to thefourth (India variant), fifth (Delta variant), and sixth (Omicron variant) waves of the global pandemic.
While demand for international travel to and from Japan in the fiscal year under review was up by
60% from the previous fiscal year to 2.25 million travelers, due in part to the trend toward easing ofinternational travel restrictions, conditional on vaccination, certification of negative PCR test results,
etc. centered on Europe and North America, where vaccination had advanced, as well as partial easingof restrictions on the number of visitors from overseas permitted to enter Japan, this number remains
down 98% from FY2019, as the business environment remains an extremely difficult one.
Although international flights to and from Haneda Airport showed continued large-scale reductions
and suspensions in all directions and on all routes, an increasing trend was apparent in April due tofactors including corporate demand for replacement of overseas resident staff and the holding of
preliminary and test tournaments in preparation for the Tokyo Olympic and Paralympic Games. Therealso was an increasing trend in numbers of travelers as athletes and related parties travelled to and fromJapan during the 2020 Tokyo Olympic and Paralympic Games in July through September. Still, there
was no full-fledged recovery in travel demand.
In addition, an easing of containment measures and restrictions on numbers of travelers admitted toJapan were announced in November, and this combined with demand from travelers returning homeduring the year-end and New Year's holidays led to another increase in travelers entering Japan in
December, to 39,000 persons. However, the spread of the Omicron variant of COVID-19 spurred asudden redoubling of entry restrictions.
Containment measures and restrictions on numbers of travelers admitted to Japan were eased again,in stages, beginning in March, leading to signs of an increasing trend in travelers and hope for further
easing of restrictions and growth in travelers' numbers in the future. However, due to factors including
the impact of geopolitical risks such as decreases in numbers of flights to and from Europe andincreasing cancellations due to Russia's invasion of Ukraine, although the number of travelers(including transit travelers) in the fiscal year was up 105% year-on-year it still did not exceed
910,000/year, as there were no clear signs of a recovery in demand.
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 enhancementof airport quarantine measures.
In the area of efforts to stop the spread of COVID-19 inside airport terminals, we obtained Airport
Health Accreditation (AHA) from the Airports Council International (ACI). Established by the ACI‐1‐

with reference to guidelines such as those formulated by the International Civil Aviation Organization(ICAO), this international accreditation reflects assessment and accreditation of the state of
implementing 122 measures in areas including measures to prevent infection of customers andemployees, cleaning and disinfection inside terminals, social distancing in various areas of the airport,
and adoption of contactless devices.
We also were assessed as an outstanding airport operator in terms of various COVID-19 initiatives.
For example, we earned five stars, the highest rating, in the COVID-19 Airport Safety Rating by
SKYTRAX of the UK and won the COVID-19 Airport Excellence Awards.
We also were the first airport in Japan to be named the Best Airport in Asia in SKYTRAX's
international airport evaluations, and we also secured first place for the sixth consecutive year in theWorld's Cleanest Airports category of those evaluations as well as first place for the third consecutive
year in the World's Best PRM/Accessible Facilities category for airport terminals making outstanding
efforts on behalf of travelers who require mobility assistance.
In addition, as part of our fast-travel initiatives aiming to realize smooth, stress-free departure
procedures, during this fiscal year we began trials in April of Face Express (a single-ID service using
facial recognition technology), a new services through which travelers who have registered their facial
photographs can complete the entire series of procedures from baggage check-in through security
screening and admittance through boarding gates with no need to show their boarding passes or
passports, and we launched full use of this system, starting with Japan Airlines, in July. Since thisprogram not only increases convenience for travelers but also helps stop the spread of infectious
diseases through reducing interaction between travelers and staff and implementing contactlesstechnologies, as well as helping to save labor in airport operations, we plan to encourage and promote
its use as well as increasing the number of compatible airlines steadily in the future.
The Tokyo Olympic and Paralympic Games, held from July through September, were held during
the COVID-19 pandemic, and they required a strict "bubble" approach to avoid contact between
athletes and related parties and others upon arrival in and departure from Japan. As a member of theJapan Airport Terminal Co., Ltd. Group, an official partner of the Olympic Games, in handling related
airport services we provided support for safe and smooth international arrivals and departures free ofany major incidents, through repeated close and thorough meetings and operations with related
agencies including the Tokyo 2020 Organizing Committee and local governments, and cooperation invarious aspects of handling Olympic travel needs, including securing dedicated routes for movementof athletes and securing waiting areas, responding to possible COVID-19 test results, handling themedia, and dealing with VIPs and star athletes.
In addition, to increase levels of convenience in response to expected growth in demand for business
jets during and after the Olympic and Paralympic Games, we opened a new gate in July dedicated tointernational business jet flights adjacent to the North Satellite. With a total floor area of approximately
1500 square meters, roughly four times that of the previous business jet gate, this gate features a flat
structure in which departure and arrival flows are fully separated, along with multiple private waiting‐2‐

rooms, greatly increasing both convenience and processing capacity.
As it had last year, 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,
in cooperation with the Japanese government's COVID-19 containment measures.
Travelers arriving from countries where COVID-19 is prevalent must be isolated for a certain period
in lodging facilities specified by quarantine authorities. Particularly in December, when the Omicron
variant was spreading worldwide, the supply of lodging accommodations for quarantine purposes wasvery tight, and increasing numbers of travelers were required to wait for lengthy periods in the airport
for transport to their accommodations. We cooperated in areas such as providing meals and blankets
for these waiting travelers and guiding them.
In addition to cooperation in containment measures, we also leased 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) from August.
To reduce operating costs in light of the large-scale decreases in numbers of flights and travelers due
to continued international travel restrictions, the international flight facilities and areas in Passenger
Terminal 2 were closed in their entirety, while reduced facilities and services in Passenger Terminal 3
continued to be provided. Some air passenger facilities, shops in retail areas, and transport services
between terminals, among other facilities and services, have been suspended or closed or have had theiroperating hours curtailed. In addition, to ensure that passenger convenience and comfort would not
suffer even as numbers of flights were limited, provision of necessary facilities, services, and shops
was maintained.
Efforts also continued on reduction and exemption of costs such as rents and facilities usage charges
in cooperation with airlines and tenants.
In light of the importance of education and training in order to be prepared for emergencies at all
times as part of international terminal risk management even under such conditions, drills wereconducted to enable terminal employees to respond immediately to accidents near their workplaces, aspart of general disaster drills conducted throughout the international passenger terminal zone, and air
security recurrent training was conducted again this fiscal year for all employees in the terminals, aspart of continuous efforts to verify awareness of crisis management and ensure thorough understandingof 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 rising risk ofcyberattacks in light of factors such as the 2020 Tokyo Olympic and Paralympic Games and Russia's
invasion of Ukraine, the structure for monitoring for unauthorized access and cyberattacks wasstrengthened 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. It continues efforts‐3‐

to identify issues and implement related improvements and enhancements through continual andrepeated assessment and verification through means including a UD Study Committee held in
November of this fiscal year, whose membership includes experts such as academics and experienced
practitioners as well as experts experienced with disabilities, airport-related businesses, and Company
employees. In addition, during this fiscal year we published on our website our Specific Plan on
Mobility Facilitation Measures under the Barrier Free Act, held a public seminar in June on serving
people with hidden disabilities (i.e., disabilities that are not readily apparent such as cognitive
disabilities and autism, learning disabilities, anxiety disorder, mental disorders, and visual and hearing
impairment), and, as one measure to prevent cases of users encountering difficulties in the airport,
began distributing on a trial basis in March Hidden Disabilities Sunflower straps to make it easier toreceive guidance and support inside the facilities.
In the area of initiatives to maintain and increase customer satisfaction (CS), continual CS efforts
are underway based on a shared CS philosophy among employees inside the terminal, in order to deliver
high-quality service and hospitality. Once again this fiscal year, the Haneda Airport International Area
Passenger CS Liaison Committee strived to involve relevant organizations and employees throughmeans including the CS award system and CS bulletins.
In these ways, despite the difficult circumstances that have continued since the previous fiscal year,
the Company strived to carry out business operations while maintaining and enhancing the functionsof terminal facilities, ensuring disaster prevention and air security, and improving facilities and services,
as well as implementing further cost-cutting measures. As a result, in this fiscal year the Company
reported operating revenue of 9,468 million yen, an operating loss of 25,263 million yen (vs. an
operating loss of 29,582 million yen in the same period of the previous year), an ordinary loss of 30,854
million yen (vs. an ordinary loss of 32,909 million yen in the same period of the previous year), and a
net loss of 30,994 million yen (vs. a net profit of 34,348 million yen in the same period of the previousyear). Since the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31,2020) and other standards have been applied since the start of this fiscal year, year-on-year comparisons(%) are not provided.
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 and exemption, as in theprevious year, intended to help lessen the burden of operating costs and provide support for tenants,
rent revenue generated from renting offices for airlines and shop spaces for tenants was 5,582 million
yen, due in part to rent on use of spaces for COVID-19 vaccination of Japanese residing overseas.
Passenger service facility charge (PSFC) revenue, which the Company receives from air travelers at
departure and during transit for connecting flights, was 1,014 million yen, due to a slight increase inpassengers from the previous fiscal year.
The facility usage fee revenue from air transport service operators' use of facilities such as boarding
bridges and the luggage handling system totaled 668 million yen due to a recovery in passenger‐4‐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 7,265 million yen.
In the area of costs, facility maintenance and management costs were reduced through partial
terminal closures and revisions to operation methods in accordance with passenger trends, conductedin order to address the impact of the decrease in revenues that has continued since the previous fiscal
year.
Directly-Managed Business Segment
In the Merchandise Sales Business, sales of goods generated from general duty-free stores andbranded boutiques totaled 1,328 million yen, as passenger numbers recovered compared to the previous
fiscal year. Sales from the Restaurant Business totaled 4 million yen, while revenues from the parking
lot business were 292 million yen.
Revenues from other businesses were 577 million yen, due mainly to reduced advertising revenues
with the termination of advertising related to the Tokyo 2020 Olympic and Paralympic Games.
Consequently, the Directly-Managed Business Segment reported operating revenue of 2,203 million
yen.
In the area of costs, business consignment costs were reduced through reduction of merchandise
inventories, closure of some shops and shortening of business hours, and other revisions to operation
methods, conducted in order to address the impact of decreased revenues that has continued since theprevious fiscal year.

‐5‐

(2)

Status of Capital Expenditure
During the fiscal year, the Company made capital expenditures of 2,846 million yen in total. This
figure includes 1,719 million yen in construction to remodel shops in duty-free areas, 622 million yen
in construction of a new gate dedicated to international business jet flights, and 443 million yen in
construction related to terminal facility maintenance.

(3)

Status of financing(a)

On November 15, 2021, borrowing was executed for 20 billion yen under the Agreement on
Amendment of the Limited Loan Contract signed with the loan syndicate on September 30, 2021,
as various reserves to contribute to cash-flow stability into the future. As a result, the outstandingbalance of the loan from the syndication stood at 118,982 million yen as of the end of the fiscal
year.

(b)

The fifth issue of 450 million yen in subordinated bonds was released April 9, 2021 based on a
Confirmation Letter concluded February 26, 2021 under the Shareholder Subordinated Loan
Agreement concluded March 27, 2008. As a result, the total outstanding balance of funds raised
through shareholder subordinated loans and shareholder subordinated bonds stood at 41,580
million yen as of the end of the fiscal year.

(4)

Issues to Be Addressed
Conditions related to demand for international air travel remain very difficult as countries andregions around the world continue to maintain restrictions on entry and exit in response to the COVID19 pandemic and geopolitical risks have been manifested as well. Giving top priority to maintaining
the safety and security of customers using flights serving the Haneda international air route even undersuch conditions, the Company will continue to provide essential facilities and services while preventing
any deterioration in convenience and comfort.
In the area of operation of terminal facilities and services, together with continued streamlining ofoperating costs through means such as review and contraction of various facilities and services, we also
will strive to maintain and continue business operations reflecting consideration for all stakeholders,
while continuing to provide support for airlines and tenants through means such as reduction andexemption of rents and facility usage charges.
Some easing has begun of Japan's COVID-19 containment measures and entry restrictions, and it ishoped that numbers of international travelers arriving in and departing from Japan will increase. In
response to future increases in numbers of flights and passengers in stages, we will prepare to reopen
facilities and services that had been subject to measures such as partial closure, contraction, andshortening of business hours. at the same time, we will cooperate closely with related government
authorities and other agencies in light of the expected possibility of changes to containment measuresand quarantine systems depending on the circumstances, through means including provision offacilities and spaces and proposing traveler flows. In directly managed businesses such as merchandise
sales as well, we will enhance structures to secure sales.
‐6‐In addition to the above, we have received the cooperation of stakeholders in various ways to enable
continuity of the international terminal business, and in some areas we are requesting further support
from the Japanese government.
During this fiscal year, the presence was confirmed of issues such as telephone callers and websites
pretending to represent our Company. An incident also occurred in which a former employee of a
subcontractor made off with personal information of Face Express users. The information already has
been recovered and deleted and we have confirmed that there was no further leakage to third parties.
Together with measures to prevent the reoccurrence of such incidents, we are enhancing our
cybersecurity measures and information security while also strengthening oversight of subcontractors.

(5)

Important developments etc. related to the going-concern assumption
Company business results are in an extremely difficult situation as restrictions on international traveland other measures have been implemented by the Japanese government over a lengthy period in
response to the global COVID-19 pandemic and numbers of international travelers have been down
dramatically since the previous fiscal year. In this fiscal year as well, liabilities have exceeded assets
as a result of recording considerable sums of operating losses and net losses. As such, there aredevelopments or situations leading to material doubts about the going-concern assumption.
To resolve these developments or situations in January 2022 we submitted to the Ministry of Land,
Infrastructure, Transport and Tourism of Japan notification of a change in the passenger service facility
charge, intended to recover the investment made in large-scale facility improvements such as expansionof the main building and satellites of Terminal 3 and expansion of the common areas for international
flights at Terminal 2. These investments have been made since March 2020 with the aim of enhancing
the functions of Haneda Airport (as part of plans to increase its flight capacity to 39,000 international
flights/year). The new facility usage charges have been applied beginning with tickets issued March
27, 2022. With regard to costs, we mainly have implemented measures such as reducing fixed costs
through contraction of terminal maintenance operations and revision of operation methods as well as
freezing new investment. Other measures taken have included securing liquidity on hand throughmeans such as raising 20 billion yen in funds from financial institutions during this period andconclusion with our parent company, Japan Airport Terminal Co., Ltd., of a memorandum on deferralof payment of rent and other charges.
Based on reasonable expectations for international air travel demand, including expectations
concerning the timing of the COVID-19 pandemic coming under control, under our fund-raising planreflecting the effects of the above measures we expect to have sufficient funding through March 31,
2023, Accordingly, we do not see any material uncertainties regarding the going-concern assumption.

(6)

Changes in Assets and Income
Category

The 13th term

The 14th term

The 15th term

The 16th term

FY2018FY2019FY2020

FY2021‐7‐

Operating revenue

96,685 million yen

88,660 million yen

8,383 million yen

9,468 million yen

Net income (loss)

7,077 million yen

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

1,383,905 yen

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

38,015 million yen

42,892 million yen

7,971 million yen-21,610 million yen

Net income (loss) per
share
Net assets

Note: The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020;"Revenue Recognition Accounting Standard" hereinafter) and other standards have been applied since thestart of the 16th term.

‐8‐

(7)

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
that must be noted in the Notes to Non-Consolidated Financial Statements for the fiscal year
consist of financing, borrowing of funds, procurement of goods, and leasing of real estate fromJapan 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
regarding transactions with its parent company such as financing, borrowing, and payment
of interest, the Company properly determines terms and conditions of transactions
according to the contracts 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 fortransactions are determined after negotiations with a reference to market prices.
Furthermore, rents on the international terminal facility in Terminal 2 are determined basedon the facility's maintenance and management costs, costs for use of state-owned property,
etc. in addition to the amount invested by Japan Airport Terminal Co., Ltd. and the amountof 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 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 thatthe transactions 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‐9‐

the premises 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

(9)

(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

Status of employees
Increase/decrease from the end of

Number of employees

the previous fiscal year

60 (3)

decreased by 1 (decreased 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.

34,074 million yen

Mizuho Bank, Ltd.

26,640 million yen

MUFG Bank, Ltd.

13,577 million yen

Japan Airport Terminal Co., Ltd.

8,510 million yen

Sumitomo Mitsui Banking Corporation

7,042 million yen

The Bank of Yokohama, Ltd.

5,438 million yen

Shinkin Central Bank

5,006 million yen

‐10‐

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.

‐11‐

3.

Status of Company Executives(1)

Directors and corporate auditors
Corporate position

Name

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
Auditor

Masakazu Owashi
Hiroshi Tobita
Seita Matsuda

Supervising area; and important position held
concurrently
Director, Japan Airport Terminal Co. Ltd.
In charge of Passenger Service Department andDisaster Prevention and Security Department
In charge of Finance Department
In charge of Facilities Department, Sales Department,
and International Operation Office
In charge of Administration Department and Planning
Department
Representative Director and Senior Executive Vice
President, Narita International Airport Corporation
Representative Director and President, TEPCOEnergyTobita & 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.

Masakazu Owashi, Corporate Auditor, is a certified public accountant and has adequate knowledge about
finance and accounting.

4.

Corporate Auditor Hiroshi Tobita possesses considerable knowledge of legal matters as a specialist ininternal controls and corporate governance.

(2)

Amount of Compensation etc. for Directors and Corporate Auditors for the Fiscal Yearunder Review
10 directors
4 corporate auditors

103 million
yen(of whom, 3 external directors: 6 million
yen)

17 million yen(of whom, 4 external directors: 17 millionyen)

Note: Amounts of compensation etc. of directors and auditors include the retirement benefits paid to
directors and corporate auditors who retired at the closure of the 15th General Shareholders Meeting.

(3)

Matters Concerning External Officers(a)Directors
Akihiko Shiina and Nobuhide Akimoto attend the board of directors meeting held every monthand offer appropriate remarks including necessary opinions and questions concerning theCompany's overall management.
‐12‐

(b)

External Corporate Auditor
Masakazu Owashi, Hiroshi Tobita and Seita Matsuda offer appropriate counseling andsuggestions from the standpoint of ensuring legal compliance and fairness at the monthly boardof 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, 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 the amountof 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 isdeemed difficult due to the occurrence of situations that hinder the competence and independence of
the accounting auditor, shall submit a proposal for dismissing or refusing the reappointment of theaccounting auditor to the General Meeting of Shareholders based on a resolution of the board ofauditors.

5.

Company Structure and Policy(1)

Structure to Ensure the Directors' and Employees' Execution of Duties in Compliancewith the Laws and Regulations and the Articles of Incorporation as well as theAppropriateness of Other Operations(a)Structure to ensure the directors' and employees' execution of duties in compliance with the laws
and regulations and the Articles of Incorporation
1)

The director in charge of Administration Department is placed in charge of compliance,
and is to establish the compliance structure and strive to understand the issues. The
Administration Department ensures the maintenance and improvement of the compliance‐13‐

structure.
2)

The Internal Audit Department monitors the operational status of the compliance structure
and reports the result regularly to the representative director and president & CEO and theboard of corporate 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
matters that need to be improved with respect to the management of risk of losses, andreports the results 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 meetingis held, 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 andordinances.

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 the president & CEO and the standing directors.

3)

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

(e)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 independentof business execution departments, to assist with the audit conducted by the board ofauditors and the corporate auditors.

2)

Pursuant to the Regulations of the Board of Auditors, the employees appointed to assist in
the duties of the corporate auditors in accordance with the provisions stipulated in thepreceding paragraph conduct administrative work related to the operation of the board ofauditors, such as 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 thecorporate auditors from the directors
1)

The transfer and evaluation of the employees assigned to assist in the corporate auditors'‐14‐

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 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 theboard of auditors in a timely manner.

2)

Pursuant to the Regulations of the Board of Auditors, the board of auditors may seek reports
as necessary 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,
the status 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 theboard of directors meetings, attended by the directors and corporate auditors, each director reports thestatus of business execution. The board of directors meetings also discusses and resolves importantmatters.
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.

‐15‐

Balance Sheet(As of March 31, 2022)(Millions of yen)
Assets
Account Title
Current assets

Liabilities
Account Title

Amount42,954

Cash and deposits

37,628

Accounts receivable - trade703

Merchandise

2,299

Accounts receivable - other2,111

AmountCurrent liabilities

27,800Accounts payable – trade

52

Current portion of long-term loans payable(Senior loan)

9,030( 9,030)

Accounts payable - other

2,697

Prepaid expenses

19

Accrued expenses

12,470

Supplies

209

Income taxes payable

143

23

Accrued interest expenses

2,909

△41

Lease obligations (current)

12

Other
Allowance for doubtful accounts (current)

Other current liabilities
Noncurrent assets

117,893

Tangible fixed assets

483

Noncurrent liabilities

154,657

115,511

Shareholder subordinated bonds

Building

99,196Long-term loans payable

130,502

Structures

1,225(Preferredr loan)( 109,952)

Machinery and equipment

9,822(Shareholder subordinated loans)( 20,550)

Vehicles5

Tools, furniture and fixtures

4,850

Long-term lease deposit received

471

Unearned revenue

31

Leased assets

73

Provision for directors' retirement benefits

Construction in progress

337

Interest-rate swap liabilities

Intangible fixed assets
SoftwareSeparately managed penalty in trust
Other investments

1,375

Lease obligations (non-current)

25

1,375

Asset retirement obligations (non-current)341

Net assets

1,006
1,000
6

182,457

Shareholder's equity△19,422

Capital stock

13,265

Capital surplus

13,265

Capital reserve

13,265Retained earnings△ 45,952

Other retained earnings
Retained earnings brought forward
Valuation and translation adjustments
Deferred gains or losses on hedges

Total assets

68
2,187

Total liabilities
Investments and other assets

21,030160,847- 16 -△ 45,952△ 45,952△ 2,187△ 2,187

Total equity△ 21,610

Total liabilities and net assets

160,847

Income Statement
From April 1, 2021 to March 31, 2022
(Millions of yen)Account Title

AmountOperating revenue
Rents

5,582

Facility rental income

1,682

Sales of goods

1,328

Restaurant sales

4

Other revenue

870

9,468

Cost of sales
Cost of goods sold

765

Operating gross profit

8,702

Selling, general, and administrative expenses

33,966△ 25,263

Operating loss
Non-operating income
Interest income0

Miscellaneous income

229

230

Non-operating expenses
Interest expenses

4,385

Fees payable

1,416

Miscellaneous loss

20

5,821
△ 30,854

Ordinary loss
Extraordinary income
Government subsidy

1,422

1,422

Extraordinary loss
Loss on retirement of fixed assets

267

Loss on reduction of fixed assets

1,388

1,655
△ 31,087

Loss before income taxes
Income taxes - current

3△

Income taxes - deferred

96

△

93

△ 30,994

Net loss- 17 -

Statement of Changes to Shareholders’ Equity
From April 1, 2021 to March 31, 2022
(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 retained
earnings

Total shareholders'equity13,265

13,265

13,265△ 14,958△ 14,958

11,571

Net loss－－－△ 30,994△ 30,994△ 30,994

Net changes of items otherthan shareholders' equity

－

－

－

－

－

－

Total changes during theperiod－－－△ 30,994△ 30,994△ 30,994

Balance at end of current
period13,265

13,265

13,265△ 45,952△ 45,952△ 19,422

Changes during the period

Valuation and translation adjustments

Deferred gains orlosses on hedges

Total valuation andtranslation
adjustments△ 3,600△ 3,600

7,971

－

－

△ 30,994

1,413

1,413

1,413

Total changes during theperiod

1,413

1,413

△ 29,581

Balance at end of current
period△ 2,187△ 2,187△ 21,610

Balance at beginning ofcurrent period

Total equity

Changes during the period

Net loss
Net changes of items otherthan shareholders' equity- 18 -

Notes to Non-Consolidated Financial Statement
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.

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 -- million yen;cumulative at the end of the fiscal year under review -- 4,517 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)- 19 -

(3)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 theinterest 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.

7.

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 of- 20 -

service provision when they are satisfied over a certain period.

Directly-Managed Business Segment(2)

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.

8.

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 FY2024.

II.

Notes on Changes to Accounting Policies

Application of the Accounting Standard for Revenue Recognition, etc.
The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29; March 31, 2020) andrelated standards have been applied since the start of this fiscal year. Under these standards, the amounts
expected to be received in exchange for goods or services are recognized as revenues at the point in time atwhich control of the promised goods or services transfers to the customer.
As a result, the method of recognition of revenues related to backdating of payment to suppliers for the
proportion of goods actually sold, consignment shops, etc. has changed from recognition as revenues of thetotal amount received from the customer to recognition of revenues in the net amount of the amount received
from the customer minus the amount payable to the supplier or consignee in transactions in which theCompany's role qualifies as that of an agent in provision of goods or services to customers.
In applying the Accounting Standard for Revenue Recognition and related standards, the Company
employs the provisional handling described in the proviso to Paragraph 84 of the Accounting Standard for
Revenue Recognition.
As a result of these changes, on the Income Statement for this fiscal year operating revenue decreased by
675 million yen, cost of sales decreased by 486 million yen, and selling, general, and administrative expenses
decreased by 189 million yen. The starting balances of operating loss, ordinary loss, and pretax loss on the
Income Statement and of retained earnings on the Statement of Changes in Equity are unaffected by thischange.

III.

Notes on Changes in Presentation Methods

Application of the Accounting Standard for Fair Value Measurement etc.
The Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30; July 4, 2019) and related- 21 -

standards have been applied since the start of this fiscal year. Pursuant to the provisional handling describedin Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the
Accounting Standard for Financial Instruments (ASBJ Statement No. 10; July 4, 2019), the new accounting
policies provided for in the Accounting Standard for Fair Value Measurement and related standards have been
applied to future accounts. The Company holds no financial instruments that are shown on the Balance Sheetin fair values, and this change has had no effect on the financial statements.

IV.

Notes on revenue recognition
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."

Notes on Balance SheetV.
1.

Reported amounts are rounded down to the nearest million yen.

2.

Pledged assets
Assets pledged as collateral

Ordinary deposits
Accounts receivable - trade

37,495 million yen
18 million yen

Building

93,569 million yen

Structures

1,225 million yen

Machinery and equipment

9,716 million yen

SoftwareSeparately managed penalty in trust
Liabilities corresponding to the above Current portion of long-term loans

332 million yen
1,000 million yen
9,030 million yen

payableLong-term loans payable

3.

109,952 million yen

The amount of reduction entry that is directly reduced from the acquisition price
Building
Machinery and equipment

1,086 million yen

Tools, furniture and fixtures

49 million yen

Software

110 million yen

4.

Total depreciation of property, plant and equipment: 100,503 million yen

5.

Monetary claims and obligations to subsidiaries and affiliates
Monetary claims

Monetary obligations

175 million yen

Accounts receivable - trade

255 million yen

Accounts receivable - other459 million yen

Accounts payable – trade

52 million yen

Accounts payable - other678 million yen- 22 -

Accrued expenses

10,986 million yen

Shareholder subordinated bonds

18,890 million yen

Long-term loans payable

15,170 million yen

Long-term lease deposit received

VI.

Notes on Income Statement

1.

Reported amounts are rounded down to the nearest million yen.

2.

Transactions with subsidiaries and affiliates
Operating transactions
Non-operating transactions

VII.

266 million yen

14,838 million yen
821 million yen

Notes on the Statement of Changes in Equity

1.

Reported amounts are rounded down to the nearest million yen.

2.

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

5,198 shares

Preferred stock

108 shares

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

19,725 million yen

Deferred losses on hedges

669 million yen

Excess depreciation loss

444 million yen

Disapproval of accrued fixed asset tax payable etc.

117 million yen

Asset retirement obligations

104 million yen

Disapproval of accrued enterprise tax payable

42 million yen

Disapproval of accrued real estate acquisition tax payable

32 million yen

Disapproval of accrued business facility tax payable

26 million yen

Provision for directors' retirement benefits

20 million yen

Allowance for doubtful accounts

12 million yen

Other76 million yen

Deferred tax assets subtotal

21,274 million yen

Valuation reserve-21,182 million yen

Deferred tax assets total

91 million yen- 23 -

[Deferred tax liabilities]

IX.
1.

Asset retirement obligations

89 million yen

Other

1 million yen

Deferred tax liabilities total

91 million yen

Subtraction: Net amount of deferred tax liabilities- million yen

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, 2022 (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

37,62837,628-(2) Shareholder
subordinated bonds(21,030)(16,043)-4,986(3) Long-term loans
payable(*2)(139,532)(134,451)-5,080(2,187)(2,187)-(4) Derivatives*1: Amounts recorded as liabilities are indicated in parentheses.
*2: Long-term loans payable include 9,030 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.

- 24 -

(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.

-

Those to which hedge accounting applies: Contractual amounts or amounts corresponding toprincipal 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.

Fair market
valueLong-term
loans
payable72,747-2,187

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

Notes on leased and other real estate

X.
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

95,131

159,399

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.

- 25 -XI.
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 theperiod6,442

10,986-844

Accounts
payable – trade

52

821

Accruedinterest
expenses

1,286

Shareholder
subordinated
bonds

5,185

Long-termloans payable

3,330

Accruedinterest
expenses
Shareholder
subordinated
bonds

560

9,240

(Note 9)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
MainshareholderDirector

Director

ANA Holdings
Inc.

Nobuhide
AkimotoDirector
TEPCO Energy
Partners
Incorporated
Representative
Director andPresident &CEO
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-

450(Note 1)
(Note 6)

Interest expenses-

Borrowingof funds- 26 -

Long-termloans payable

3,330

Accruedinterest
expensesLong-termloans payable

560
1,610

77

Borrowingof funds

Financing

5,185

Accruedinterest
expenses106

Long-termloans payable

1,620

Accruedinterest
expenses

135

99

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:

Among the amounts indicated in the table above, transaction amounts do not include consumption
tax.

Note 8:The ratios of voting rights and other ownership are rounded down to the nearest two decimal places.

Note 9: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.

- 27 -

XII.

Notes on data per share

1.

Net asset per share: -4,358,959.15 yen

2.

Net loss per share: -5,962,823.44 yen

XIII. Matters concerning important subsequent events
There are no applicable matters.

- 28 -

The 16th Term
Annexed Detailed Statements toBusiness Report
From April 1, 2021 to March 31, 2022

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 16th Term
Annexed Detailed Statements to
Financial Statements
From April 1, 2021 to March 31, 2022

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
assets69,997
1,637

Acquisition
cost at theend of theperiod169,194
2,862

9,822

5,954

15,777

1

5

192

198

50

1,363

4,850

22,671

27,521

0

-

24

73

49

122

(123,733)(3,385)(1,298)(10,647)(115,173)(100,503)(215,676)

875

1,423

1,962

-

337

-

337

124,609

4,809

3,260

10,647

115,511

100,503

216,014

1,758

279

110

552

1,375

-

1,375

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

SoftwareDeclineDepreciation Book value atduring thein the term the end of theterm under
under review
periodreview
192
8,097
99,196
185
1,225

104,734
1,342

2,751
68

11,745

107

1,055

974

6

-

-

5,805

458

97

Total
depreciation

Note: The increase in the term under review consisted mainly of 2,186 million yen in construction on remodeling of shops
in duty-free areas, 1,050 million yen in construction to install a dedicated gate for international business jet flights,
and 676 million yuen in construction related to terminal facility maintenance and management. The decrease
consisted mainly of reduced-value entry of 1,388 million yen related to construction for installation of equipment
related to fast-travel measures (self-check-in kiosks, automated baggage drop machines, automated gates at security
checkpoints, and computer systems for these facilities).

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

71

16

19

-

68

Allowance for doubtful
accounts

44

8

-

11

41

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

535

Provision for directors' retirement benefits

16

Legal welfare expenses

9

Welfare expenses

2

Transportation expenses

2

Supplies expenses

4

Furniture and fixtures

11

Utilities expenses

459

Communication expenses

101

Insurance expenses

536

Repair expenses

26

Rent expenses

11,403

Conference expenses

0Entertainment expenses

0

Taxes and public charges

1,636

Donations0Advertising expenses

15

Cleaning expenses

13

Fees payable3

Temporary staffing expenses

15

Educational and training expenses

2

Business consignment expenses

7,752

Miscellaneous expenses

114

Depreciation

11,199Total

33,966- ２ -