May 10, 2019

Financial Report for the Year Ended March 31, 2019 (FY2018) [J-GAAP] (Consolidated)
This document has been translated from the Japanese original, for reference purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.

Company name: Japan Airport Terminal Co., Ltd.
Listed stock exchange: Tokyo, 1st Section
Code number: 9706
URL: http://www.tokyo-airport-bldg.co.jp/company/en/
Representative: Nobuaki Yokota, President and COO
Contact: Kazuhito Tanaka, Managing Director
TEL 03-5757-8409
Scheduled date of annual general meeting of shareholders: June 26, 2019
Scheduled date of filing securities report: June 26, 2019
Scheduled date of commencing dividend payment: June 27, 2019
Supplementary materials on financial results (yes/no): Yes
Holding of earnings announcement (yes/no): Yes (for institutional investors and financial analysts)(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Year Ended March 31, 2019 (April 1, 2018 to March 31, 2019)(1) Consolidated Business Results(%: Change from the previous period)
Net income attributable toOperating revenues
Operating income
Ordinary income
owners of the parent

%
21.1
10.2

Millions of yen

FY2018FY2017

273,618
225,953(Note) Comprehensive income: FY2018

22,481
13,429¥36,748 million (167.1%)

%
22.1
30.0

Millions of yen

20,37916,696

Millions of yen

33,004
11,776

%
180.3
71.0

FY2017 ¥13,758 million (41.3%)

Net income per
share
Yen

Diluted net income
per shareYen

406.31144.98388.03138.37FY2018FY2017

%
67.4
41.4

Millions of yen%

Ordinary income tototal assets%

Operating income tooperating revenues
%

22.2
9.2

5.6
7.4

8.2
5.9

Return on equity(Reference) Equity in earnings of affiliates: FY2018 ¥297 million

FY2017 ¥2,335 million(2) Consolidated Financial Position
Total assets

Equity capital tototal assets

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen484,654239,389

201,390
136,15633.7
55.7

2,011.61
1,641.82

As of March 31, 2019
As of March 31, 2018

(Reference) Equity capital: As of March 31, 2019

¥163,399 million

As of March 31, 2018

¥133,362 million(3) Consolidated Cash Flows
Cash flows from operating
activities

Cash flows from investing
activities

Cash flows from financing
activities

Cash and cash equivalents
at the year-end

Millions of yen

Millions of yen

Millions of yen

Millions of yen

34,28822,257(8,489)(28,474)

19,152
9,438

87,27342,329FY2018FY2017
2. Dividends

Dividends per share

FY2017FY2018FY2019(Forecast)

AnnualTotal
dividends(annual)Dividend
payout ratio(consolidated)

Dividends on
net assets(consolidated)

Q1-EndQ2-EndQ3-EndYear-end

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

-

20.00
23.00

-

24.00
22.00

44.00
45.00

3,574
3,655

30.4
31.2

2.8
2.5

-

20.00

-

20.00

40.00

40.6

In calculating the dividend payout ratio for FY 2018, ¥21.3 billion is excluded from net income attributable to owners of the parent(¥33 billion). ¥21.3 billion is the amount, after considering deferred tax effect, of one-time extraordinary gain on negative goodwill,
etc. that was recognized (¥23 billion) concerning the stock acquisition of Tokyo International Air Terminal Corp.

3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2020 (April 1, 2019 to March 31, 2020)(%: Change from the same period of the previous year)

Operating revenues

Operating income

Net income attributableto owners of the parent

Ordinary income

Net income
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

137,300
277,500

-0.1
1.4

9,900
16,000

-23.1
-28.8

9,200
14,200

-21.3
-30.3

4,900
8,000

-82.6
-75.8

60.32
98.49

First half
Full-year

Other Information(1) Significant changes in subsidiaries during the year under review (changes in specified subsidiaries involving changes in scope of
consolidation): Yes
New: 1 company (Tokyo International Air Terminal Corp.)
Excluded: None
(2) Changes in accounting policies, accounting estimates, and restatement of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement of revisions: None
(3) Number of shares outstanding (common stock)1) Number of shares outstanding at the year-end (including treasury stock):
As of March 31, 201984,476,500 shares
As of March 31, 2018
2) Number of treasury stock at the year-end:
As of March 31, 20193,247,973 shares
As of March 31, 2018
3) Average number of shares outstanding during the period:
Year ended March 31, 201981,228,641 sharesYear ended March 31, 2018
(Reference) Summary of Non-Consolidated Financial Results
Financial Results for the Year Ended March 31, 2019 (April 1, 2018 to March 31, 2019)(1) Non-Consolidated Business Results
Operating revenues

%
6.8
9.7

Millions of yen

FY2018FY2017

Operating income

188,121
176,160

Millions of yen

3,247,735 shares
81,228,813 shares(%: Change from the previous period)

Ordinary income

%
-11.9
19.2

Millions of yen

7,517
8,769

Yen

Diluted net income per share
Yen

67.23
76.74

64.03
73.14

Net income per share

FY2018FY2017

6,880
7,811

84,476,500 shares

Net income

%
-14.3
12.0

Millions of yen

5,460
6,233

%
-12.4
97.5

(2) Non-Consolidated Financial Position
Total assets

As of March 31, 2019
As of March 31, 2018
(Reference) Equity capital:

Net assets

Equity capital tototal assets

Net assets per share

Millions of yen

Millions of yen%

Yen

246,452
211,950

105,384
104,49742.8
49.3

1,297.38
1,286.46

As of March 31, 2019

¥105,384 million

As of March 31, 2018 ¥104,497 million* This financial report is not subject to audits by certified public accountants or auditing firms.
* Statements regarding the proper use of financial forecast and other special remarks
Notes on the use of forward-looking statements
The forecast of the business results reported herein was prepared based on information Japan Airport Terminal Co., Ltd. (hereinafter“the Company”) had in its possession as of the time this report was prepared and on certain assumptions judged to be reasonable.
The Company makes no guarantee that these figures will be achieved. Actual results may differ significantly from forecasts due tovarious factors. For the assumptions used in financial forecasts and precautionary statements regarding the use of the forecasts,
please refer to page 5 of the appendix materials “1. Analysis of Business and Financial Results (4) Forecast for FY 2019 (the fiscal
year ending March 31, 2020).
Supplementary materials on financial results and details of presentation at earnings announcement
Earnings announcement is planned to be held on May 17, 2019 for financial analysts. Video of the presentation as well as
presentation materials used in the earnings announcement will be promptly posted on the Company’s website following the meeting.

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)

Contents of the Appendix Materials
1.

ANALYSIS OF BUSINESS AND FINANCIAL RESULTS ..................................................................................... - 2 -(1) ANALYSIS OF CONSOLIDATED BUSINESS RESULTS FOR FY 2018 .................................................................................. - 2 (2) ANALYSIS OF CONSOLIDATED FINANCIAL POSITION FOR FY2018 ................................................................................ - 4 (3) ANALYSIS OF CONSOLIDATED CASH FLOWS FOR FY 2018............................................................................................ - 5 (4) FORECAST FOR FY 2019 (THE FISCAL YEAR ENDING MARCH 31, 2020) ........................................................................ - 5 2.

BASIC APPROACH ON SELECTION OF ACCOUNTING STANDARDS ............................................................. - 6 -3.

CONSOLIDATED FINANCIAL STATEMENTS AND MAIN NOTES ................................................................... - 7 (1) CONSOLIDATED BALANCE SHEETS .............................................................................................................................. - 7 (2) CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ................. - 9 Consolidated Statements of Income ............................................................................................................................... - 9 Consolidated Statements of Comprehensive Income ...................................................................................................... - 11 (3) CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY .................................................................... - 12 (4) CONSOLIDATED STATEMENTS OF CASH FLOWS.......................................................................................................... - 14 (5) NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS .......................................................................................... - 16 (Notes on the Premise of a Going Concern) .................................................................................................................. - 16 (Basic Important Conditions to Prepare Consolidated Financial Statements) ................................................................... - 16 (Notes on Changes in Presentation) ............................................................................................................................. - 18 (Notes on Consolidated Balance Sheets) ...................................................................................................................... - 19 (Notes on Consolidated Statements of Income).............................................................................................................. - 20 (Notes on Consolidated Statements of Cash Flows) ....................................................................................................... - 21 (Segment Information) ............................................................................................................................................... - 21 (Per Share Information) ............................................................................................................................................. - 24 (Significant Subsequent Events) .................................................................................................................................. - 24 -4.

OTHERS ......................................................................................................................................................... - 25 --1-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)

1. Analysis of Business and Financial Results(1) Analysis of Consolidated Business Results for FY 2018
During the fiscal year ended March 31, 2019 (FY 2018), the Japanese economy experienced a gradual
recovery, despite the fact that exports and production in some sectors showed some signs of weakness toward
the end of the fiscal year in March 2019. Looking ahead, though weakness will remain to be seen in some
sectors, continuing improvement in employment and income, combined with various government policies, is
expected to support moderate economic recovery. Nevertheless, it is important to prudently monitor various
issues, such as effects of rising trade tensions on the global economy, China’s economic trends, the uncertainty
in overseas economies and policies, and the volatility of capital markets. In particular, the Chinese economy has
been gradually slowing down and this trend is expected to continue in the near future, while the effects ofvarious government measures are expected to unfold. However, the uncertainty in terms of how trade tensions
will develop, and what impact they will have, means that there is a risk of an economic downturn.
Looking at our business environment, the Japanese government targets 40 million annual inbound tourists
for Japan in 2020. The volume of inbound tourists in 2018 (January – December) hit a record high of over 30
million. The growth was primarily due to an increase in total seat capacity fueled by new routes and an increasein flights and continuing promotional campaigns for traveling to Japan, despite the adverse impacts observed
since September 2018 due to natural disasters that struck Japan during the summer and fall seasons last year.
A review of passenger traffic during FY 2018 shows that passenger volume at Haneda Airport, both on
domestic and international flights, rose year-on-year since airlines increased their nighttime flights on Haneda’s
international routes, increased seat capacity by redesigning aircraft seating layouts, and offered various types ofdemand-based discount pricing. International flights at Narita International Airport also increased year-on-year
not only because additional flights were operated in September 2018 following the disaster that hit KansaiInternational Airport, but also because passenger traffic has remained robust since then.
Under these circumstances, the Japan Airport Terminal group (“JAT Group”) has embraced its long-term
vision “To be a World Best Airport” that best satisfies the needs of all stakeholders. To achieve this long-term
vision, the medium-term business plan has been developed and implemented as our five-year growth strategy
until FY 2020. This medium-term business plan was reviewed to keep up with the current corporate growthstrategy and updated to reflect recent developments, including the consolidation of Tokyo International Air
Terminal Corp. (“TIAT”) by subscribing for a third-party allotment of shares in April 2018, as well as thestrengthening of airport functions to meet the increasing demand of international flights after 2020. Our mainpriorities for FY 2018 have been to realize the intended effects and purpose of consolidation of TIAT, achieve
appropriate results, respond to changes in the business environment, and further improve the performance of
airport-style in-city duty-free shops. While pursuing these priorities, JAT Group is implementing various
measures based on three strategic pillars: 1) Pursuit of the ideal of Haneda Airport, 2) Expansion of our businessdomain utilizing our strengths and the diversification of profits, and 3) Reconstruction of our profit base and thebuilding of competitive advantages.
With regard to the “Pursuit of the ideal of Haneda Airport”, passenger terminal facilities are being
constructed with a view toward re-expansion of Haneda international flights. As part of this project, theboarding stations near the North Pier of Terminal 2 and the satellite facility at Terminal 2 began operating inMay 2018 and in December 2018 respectively. Other re-expansion projects are proceeding in line with theconstruction schedule that will be completed for service by March 2020. In terms of airport safety, we are taking
additional protective measures, such as installing water-stopping boards to prevent flooding into theunderground facilities in light of the last year’s unprecedented natural disaster which significantly affected thesafety of airport functions. We will step up our investments to enhance airport safety and continue to implement
our business policy of establishing absolute safety. Besides, we continue to make efforts to improve the terminal
environment and passenger convenience by means of renovation projects that began at Terminal 1 in October
2018, as well as the expansion of P4 parking in March 2019. Moreover, in a drastically changing businessenvironment, it is important not only to utilize our experience and know-how more extensively, but also to
expand our business domain by bringing in expertise that our company does not possess, so that we can achieve
more stable growth by taking full advantage of the prominent location of Haneda Airport. To this end, Haneda
Future Research Institute Inc. was established on July 2, 2018. Its business is now being undertaken inconsideration of the perspective that art and culture will play a vital role in supporting the Japanese economy
after the 2020 Olympics. While we contribute to regional revitalization by taking advantage of the premierlocation of Haneda Airport in connecting local municipalities and Haneda Airport, we are also creating newvalues by promoting abroad Japanese fine products, art, and culture. In addition, we will propose a future designof Japan, such as new lifestyle, while educating human resources who can meet the needs of the times andfulfilling the role of a think tank. Furthermore, Haneda Robotics Lab, a robot technology project that aims to
improve functionality and customer convenience of Haneda Airport, has gone through demonstration
experiments, product improvement and introductory testing of various service robots, and participated in
exhibitions in Japan and abroad to promote our activities. These efforts were recognized as a meaningful
initiative in the field of airport operation that helps improve passenger experiences, leading to these efforts-2-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)

being awarded “Best Passenger Experience Initiative” at Future Travel Experience Asia Expo 2018 that took
place in Singapore in November 2018. We will continue to explore ways to utilize the latest technology at
Haneda Airport.
In terms of the “Expansion of our business domain utilizing our strengths and the diversification of profits”,
a duty-free shop at the arrival hall in the Haneda’s international terminal was opened in April 2018. TIAT
DUTY FREE SHOP CENTRAL within the departure area held a grand opening on March 28, 2019 following
renovations that began in July 2018. This new shop, which has enhanced customer convenience by offering awider variety of goods, particularly cosmetics and perfumery, handles Japanese brands popular among inboundtravelers, including a number of new brands, and its sales have been successful so far. On the other hand,tightened enforcement of regulations on bringing duty-free goods into China, as well as the weakening of theChinese Yuan, have caused a slowdown in the pace of growing consumption by Chinese travelers at our
duty-free shops since October 2018. Also, since January 2019, sales at our duty-free shops at Narita airport andairport-style in-city duty-free shop “Japan Duty Free Ginza” have fallen short of that of the previous year, withsentiment of Chinese customers affected by the economic slowdown and new legislation in China. Nevertheless,we will continue a comprehensive approach to enhance their revenues and to align with e-commerce business inorder to take advantage of the demand for shopping by Chinese visitors which is expected to grow. Since thenumber of outbound Japanese customers hit a record-high in 2018 and is expected to grow steadily, we also
carry out merchandise strategy that reflects the preferences of Japanese customers. Also, MSJA-Kumamoto
Consortium, to which the Company belongs, was awarded preferred negotiation rights on the Qualified Project
etc. for Kumamoto Airport Operation in March 2019. Consequently, a Special Purpose Company is proceedingwith preparations for starting the business in July 2019. As for the Palau International Airport project, locally
based joint venture company “Palau International Airport Company” started operating the airport terminal in
April 14, 2019 and is working on renovation and expansion of the terminal facilities which are scheduled to becompleted within FY 2020. Furthermore, a consortium of Japanese companies, including the Company, signed ashareholders’ agreement in December 2018 with Joint-Stock Company, Khabarovsk Airport, for participation ina business to construct and operate a passenger terminal at Khabarovsk International Airport. The efforts will be
accelerated with the other partner companies in order to start the business.
With respect to the “Reconstruction of our profit base and the building of competitive advantages”, we
opened a new 14 tenant commercial facility, “THE HANEDA HOUSE”, on December 19, 2018 on the 5th floorof Haneda’s Terminal 1. This project is designed to provide new types of airport experiences by bringing
together facilities specializing in offering unique experiences. “Air BIC CAMERA” showed strong results by
opening two stores at Chubu Centrair International Airport in April and June 2018, and one at Naha Airport on
March 18, 2019, and by offering products that meet the needs of foreign travelers. To leverage the profit
opportunity created by foreign travelers’ spending outside of the airport, a new store was opened at Divercity
Tokyo Plaza on November 2, 2018, following the store opening at Aqua City Odaiba.
Additionally, ¥30,000 million was financed on August 31, 2018 through Hybrid Loan (subordinated debt),
a strategic financing scheme that achieves both financial stability and improvement in return on capital. As thisHybrid Loan is recognized by a credit rating agency to qualify for equity classification to a certain extent, it
serves essentially to strengthen financial structure without diluting its shares. In the area of corporate
governance, we are working to strengthen governance structure by holding legal and corporate governanceseminars in which our CEO and other management members participate, amending internal rules and guidelines,
including regulation of the board of directors, and analyzing the effectiveness of the board of directors,
including objective third-party evaluations.
Consolidated financial results for FY 2018 (April 1, 2018 – March 31, 2019) were affected by the changes
in profit structure resulting from consolidation of TIAT as a consolidated subsidiary and recognition of
extraordinary income and losses. Under these circumstances, consolidated operating revenues for FY 2018
totaled ¥273,618 million (up 21.1% from the previous fiscal year), with operating income of ¥22,481 million(up 67.4%), ordinary income of ¥20,379 million (up 22.1%), and net income attributable to owners of the parentof ¥33,004 million (up 180.3%).
In September 2018, Haneda Airport’s passenger terminals were awarded “5-Star Airport” quality ranking,the highest global standard, for the fifth consecutive year in the “Global Airport Rating” evaluated by the
Skytrax (UK). In March 2019, we were awarded second place in the World’s Best Airports category, which
comprehensively evaluates various aspects of international airports. We were also awarded first place in theWorld's Cleanest Airports (for the fourth year in a row), World's Best Domestic Airports (for the seventh
consecutive year), and World's Best PRM / Accessible Facilities, a category that was newly introduced this year.
With the Tokyo Olympics and Paralympics approaching, JAT Group works cooperatively as an entire airport
and as a sky gateway to the Tokyo metropolitan area, so that both domestic and international terminals offer ahigh level of customer convenience, comfort, and functionality. In pursuit of the ideal of Haneda Airport, we
aim to be the airport that earns the long-term trust of customers from all over the world.
The following is a breakdown of earnings by segment. Note that the figures for operating income are-3-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)equivalent to those for segment income.
[Facilities Management]
Since TIAT became a consolidated subsidiary, revenue at Haneda’s international terminal has been added
including rental revenue, facility user charges on international flights, parking revenue, and sales fromadvertisements and at lounges, while what was recognized as revenue from outsourced operations at theinternational terminal in previous years is now offset.
Looking at factors other than the consolidation of TIAT, rental revenue rose from the previous year
primarily due to an increase in rental spaces to airlines and opening of “THE HANEDA HOUSE” on the 5th
floor of Terminal 1, despite a decrease in rental revenue resulting from the closure of tenants due to ongoing
construction for the expansion of Terminal 2.
Revenue from facility user charges rose from the previous year because a growth in domestic passenger
volume fueled by strong demand for business travelers and inbound travelers using domestic routes increaseduser charges revenue for domestic terminal facilities, despite flight cancellations due to natural disasters.
Other revenues rose from the previous year primarily because revenue at lounges at domestic terminals
increased.
As a result, operating revenues from facilities management operations increased to ¥87,584 million (up44.9% year-on-year). Operating income for the segment was ¥14,339 million (up 113.5% year-on-year).
[Merchandise Sales]
Since TIAT became a consolidated subsidiary, sales at duty-free shops at Haneda’s international terminal
have been added, while what was recognized as revenue from wholesaling in previous years is now offset.
Looking at factors other than the consolidation of TIAT, sales at domestic terminal stores rose from theprevious year as a result of an increase in domestic passenger volume and efforts to achieve higher averagepurchase prices.
With regard to sales at international terminal stores, we have seen a slowing trend of consumption growthby Chinese travelers at our duty-free shops, such as a decrease in the numbers of items purchased and ahesitance to buy expensive goods, affected by tightened enforcement of regulations on bringing duty-free goods
into China as well as the weakening of the Chinese Yuan. Nevertheless, the sales at international terminal storesincreased from the previous year because international passenger volume grew at Haneda Airport and efforts
were made to improve the merchandise lineup and to realize greater operational efficiency by opening a new
duty-free shop on the arrival floor, renovating “TIAT DUTY FREE SHOP CENTRAL”, and opening new shops
at Chubu Centrair International Airport.
Other revenues rose because the wholesaling to regional airports progressed well.
As a result, operating revenues from merchandise sales operations increased to ¥172,996 million (up16.4% year-on-year) and operating income rose to ¥15,760 million (up 39.2% year-on-year).
[Food and Beverage]
Since TIAT became a consolidated subsidiary, sales from food and beverage operations at Haneda’s
international terminal have been added, while what was recognized as the revenue from the outsourced
operations at international terminal in previous years is now offset.
Looking at factors other than the consolidation of TIAT, sales from food and beverage operations
decreased from the previous year because some restaurants and stores were closed due to renovations andconstruction for internationalization at domestic terminal.
Sales from in-flight meals rose from the previous year due to an increase in flights of foreign carriers, ourclients in this business, and the acquisition of new clients.
As a result, operating revenues from food and beverage operations increased to ¥22,613 million (up 1.5%
year-on-year) and operating income rose to ¥880 million (down 1.8% year-on-year).
(2) Analysis of Consolidated Financial Position for FY2018[Assets]
Current assets increased by ¥51,832 million from the previous fiscal year end to ¥123,817 million,
primarily due to an increase in cash and deposits by ¥44,971 million and in merchandise and finished productsby ¥4,456 million, despite a decrease in accounts receivable by ¥1,607 million.
Fixed assets increased by ¥193,432 million from the previous fiscal year end to ¥360,837 million,
primarily because tangible fixed assets rose by ¥174,405 million and leasehold right increased by ¥37,050
million, despite a decrease in investment securities by ¥15,118 million.
As a result, total assets increased by ¥245,265 million from the previous fiscal year end to ¥484,654 million.
[Liabilities]
Current liabilities increased by ¥30,208 million from the previous fiscal year end to ¥67,894 million,-4-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)

primarily because “Current portion of bonds with stock acquisition rights” increased by ¥15,013 million,
short-term loans payable increased by ¥4,934 million and other current liabilities increased by ¥4,611 million.
Fixed liabilities increased by ¥149,823 million from the previous fiscal year end to ¥215,370 million,
primarily because long-term loans payable increased by ¥133,135 million.
As a result, total liabilities increased by ¥180,031 million from the previous fiscal year end to ¥283,264
million.
[Net assets]
Total net assets increased by ¥65,233 million from the previous fiscal year end to ¥201,390 million
primarily because non-controlling interests increased by ¥35,196 million and retained earnings increased by¥29,185 million.
As a result, equity ratio was 33.7% (compared to 55.7% at the previous fiscal year end).
(3) Analysis of Consolidated Cash Flows for FY 2018
Cash and cash equivalents (hereinafter referred to as “cash”) at the current fiscal year end increased by¥44,943 million compared to the previous fiscal year end to ¥87,273 million.
The following is a summary of cash flows and the factors behind these flows for the current fiscal year.
[Cash flows from operating activities]
Net cash provided by operating activities increased by ¥12,031 million (up 54.1%) from the previous fiscal
year to ¥34,288 million. This was primarily due to an increase in income before income taxes and minority
interests.
[Cash flows from investing activities]
Net cash used in investing activities decreased by ¥19,985 million (down 70.2%) from the previous fiscal
year to ¥8,489 million. This was primarily due to proceeds from purchase of investments in subsidiary resulting
in change in scope of consolidation.
[Cash flows from financing activities]
Net cash provided by financing activities increased by ¥9,714 million (up 102.9%) from the previous fiscal
year to ¥19,152 million. This was primarily because of proceeds from long-term loans payable.
(4) Forecast for FY 2019 (the fiscal year ending March 31, 2020)
Over the next fiscal year, continuing improvements in employment and income, coupled with various
government policies, are expected to support moderate economic recovery, though weaknesses remain in some
sectors. Nevertheless, it is necessary to prudently monitor risk factors, such as impacts of rising trade tensions on
the global economy, trends involving China’s economy, as well as uncertainty in overseas economies and policy,
and volatility in the capital markets.
The airline industry is experiencing a number of important initiatives aimed at strengthening functions ofmetropolitan airports to meet the demands for hosting the 2020 Tokyo Olympic and Paralympic Games andbeyond, as well as upgrading the gateway functions at regional airports to meet the Japanese government’s goalof a tourism-oriented developed nation and its targets of 40 million for annual inbound tourists in 2020, and 60
million in 2030. The industry is also stepping up its efforts to heighten security against terrorism and taking
security and safety measures with a view toward enhancing aviation safety.
To cope with these circumstances, JAT Group is working hard to address key challenges: to makepreparations regarding terminal operation that should be planned after the new international facilities come into
use, to respond effectively to changes in consumption by inbound Chinese travelers, and to execute the financial
plan that will lead to meeting the guidelines for FY 2020. Our present expectations for earnings by segment for
FY 2019 are described below.
Facilities management operations are expected to surpass the results of FY 2018 because of the full-year
contribution of “THE HANEDA HOUSE” that opened in December 2018, an increase in rental revenue due toexpansion at Terminal 2 in FY 2019 of office rental space to airlines, and an increase in revenue from facility user
charges due to growing passenger volume at the domestic and international terminals. On the other hand,operating income is expected to fall short of that of FY 2018 because of a one-time cost incurred due tocompletion of international facilities.
As for merchandise sales operations, sales have decreased year-on-year in some duty-free stores since
January 2019. Despite the prospect of growing numbers of inbound tourists, the merchandise sales will remain ina difficult situation, due to the slowdown in the growth of purchase prices, decreases in sales at shops at domestic
terminals caused by construction for expansion of Haneda’s Terminal 2, as well as a renovation project plannedfor brand shops at Haneda’s international terminal and duty-free shop at Narita Airport. Nevertheless, financial
results are expected to remain largely on par with FY 2018 due to the contribution of “TIAT DUTY FREE SHOP
-5-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)

CENTRAL” which opened at the end of March 2019, combined with efforts to develop e-commerce and sales toregional airports by leveraging information technology.
Food and beverage operations are expected to remain nearly at the same level as FY 2018, despite thetemporary closure of shops during construction for expansion of international facilities in Terminal 2.
Therefore, for consolidated performance in the fiscal year ending March 31, 2020 (FY 2019), we forecast
operating revenue of ¥277,500 million (up 1.4% year-on-year), operating income of ¥16,000 million (down
28.8%), ordinary income of ¥14,200 million (down 30.3%), and net income attributable to owners of the parentof ¥8,000 million (down 75.8%).

2.

Basic approach on selection of accounting standards
To secure comparability between companies and between fiscal years, the Group prepares its consolidated
financial statements in accordance with the Ordinance on Terminology, Forms and Preparation Methods ofConsolidated Financial Statements (Finance Ministry Ordinance No. 28 of 1976), excluding Chapter 7 andChapter 8.
The Group will appropriately consider the possibility of adoption of international accounting standards
taking into consideration of conditions in Japan and overseas.

-6-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)

3. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets(Millions of yen)

ASSETS
Current assets
Cash and deposits
Accounts receivable
Merchandise and finished products
Raw materials and stored goods
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery, equipment and vehicles (net)Land
Lease assets
Accumulated depreciation and impairment loss
Lease assets (net)
Construction in progress
Other tangible fixed assets
Accumulated depreciation and impairment loss
Other tangible fixed assets (net)Total tangible fixed assets
Intangible fixed assets
Leasehold right
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit assets
Other investments
Total investments and other assets
Total fixed assets
TOTAL ASSETS-7-

FY2017(As of March 31, 2018)

FY2018(As of March 31, 2019)

42,487
19,566
6,512
161
3,294
(37)
71,98587,458
17,95910,968
141
7,306
(16)
123,817

281,100(204,919)
76,18011,827(8,821)
3,005
11,371
1,159
(537)
621
21,49632,101(26,789)
5,311
117,987

459,499(261,619)
197,879
23,945(13,457)
10,488
11,371
1,261
(695)
565
58,98859,926(46,826)
13,099292,393

－
1,889
1,889

37,0502,586
39,637

31,953
6,665
5,789
298
2,820
47,527
167,404
239,389

16,835
2
6,981
1,385
3,601
28,806360,837
484,654

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)(Millions of yen)

LIABILITIESCurrent liabilities
Accounts payable
Short-term loans payable
Current portion of bonds with stock acquisitionrights
Accrued expenses
Income taxes payable
Allowance for employees’ bonuses
Allowance for directors’ bonuses
Other current liabilities
Total current liabilities
Fixed liabilities
Bonds
Bonds with stock acquisition rights
Long-term loans payable
Lease obligations
Deferred tax liabilities
Allowance for directors’ retirement benefits
Net defined benefit liabilities
Asset retirement obligations
Other fixed liabilities
Total fixed liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-8-

FY2017(As of March 31, 2018)

FY2018(As of March 31, 2019)

9,707
7,790

9,774
12,724－15,013

9,317
3,202
1,673
250
5,743
37,685

13,547
4,482
1,725
269
10,35567,894－30,07028,210
504
－
－
3,304
471
2,986
65,547103,233

11,127
15,031
161,345409
14,204
57
4,059
478
8,656
215,370
283,264

17,48921,337
92,826(3,245)
128,408

17,48921,337122,012(3,246)
157,592

6,276

5,506

(1,259)
54
(116)
4,954
2,793
136,156
239,389

197
47
55
5,807
37,990201,390484,654

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)

FY2017(from April 1, 2017
to March 31, 2018)
Operating revenues
Rent revenue
Facility user charges revenue
Other revenues
Sale of merchandise
Sale of food and beverage
Total operating revenues
Cost of sales
Cost of sales of merchandise
Cost of sales of food and beverage
Total cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and wages
Provision for employees’ bonuses
Provision for directors’ bonuses
Expenses for retirement benefits
Rent expenses
Outsourcing and commission
Depreciation expenses
Other costs and expenses
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in gains of affiliates
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of fixed assets
Fee and commission expenses
Miscellaneous expenses
Total non-operating expenses
Ordinary income-9-

FY2018(from April 1, 2018
to March 31, 2019)13,27818,75429,665
147,117
17,138225,953

17,45443,50521,314
171,249
20,095
273,618

111,480
10,746122,226
103,726

121,195
10,934132,129
141,489

10,651
1,572
250
997
12,73427,502
10,80625,78290,296
13,42912,072
1,620
269
955
16,97430,333
24,63432,147
119,00722,481

627
324
2,335
763
4,050

26
330
297
1,119
1,775

331
110
269
72
783
16,696

3,102
82
584
107
3,877
20,379Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)(Millions of yen)

FY2017(from April 1, 2017
to March 31, 2018)
Extraordinary gains
Gains on sales of fixed assets
Gain on offsetting assets and liabilities
Gain on negative goodwill
Other extraordinary gains
Total extraordinary gains
Extraordinary loss
Impairment loss
Loss on retirement of fixed assets
Loss on valuation of other investments
Loss of step acquisition
Other extraordinary loss
Total extraordinary loss
Income before income taxes and non-controlling interests
Income taxes – current
Income taxes – deferred
Total income taxes
Net income before non-controlling interests
Net income attributable to non-controlling interests
Net income attributable to owners of the parent- 10 -FY2018(from April 1, 2018
to March 31, 2019)

1
－
－
－
1

－
5,626
20,126207
25,960

138
7
27
－
－
173
16,523
4,940
(370)
4,569
11,954
177
11,776

117
315
－
2,725
152
3,311
43,027
7,742
(381)
7,360
35,666
2,662
33,004

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income before non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests- 11 -FY2017(from April 1, 2017
to March 31, 2018)
11,954FY2018(from April 1, 2018
to March 31, 2019)35,666

842
－
2
664

(772)
386
(6)
238

294

1,235

1,803
13,758

1,081
36,74813,55633,856201

2,891

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)(3) Consolidated Statements of Changes in Shareholders’ Equity
FY2017 (from April 1, 2017 to March 31, 2018)(Millions of yen)
Shareholders’ equity

Balance at the beginning of current period

Common stock

Capital surplus

17,48921,337Retainedearnings

Treasury stock

84,054(3,244)

Total
shareholders’equity119,637

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)(3,005)(3,005)

11,776

11,776(0)(0)

Total changes during current period

－

－

8,771

(0)

8,771

Balance at the end of current period

17,48921,337

92,826(3,245)

128,408

Accumulated other comprehensive income
Deferred gains
or losses onhedges5,444(1,545)

832

286

2

659

1,780

Total changes during current period

832

286

2

659

1,780

Balance at the end of current period

6,276(1,259)

54

(116)

4,954

Balance at the beginning of current period

Foreigncurrencytranslation
adjustment

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income
52
(776)
3,174

Valuationdifference on
available-for-salesecurities

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)

Balance at the beginning of current period

Non-controllinginterests
2,626

Total net assets
125,438

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)(3,005)
11,776
(0)
167

1,947

Total changes during current period

167

10,718

Balance at the end of current period

2,793

136,156- 12 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)

FY2018 (from April 1, 2018 to March 31, 2019)(Millions of yen)
Shareholders’ equity

Balance at the beginning of current period

Common stock

Capital surplus

17,48921,337Retainedearnings

Treasury stock

92,826(3,245)

Total
shareholders’equity128,408

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)(3,817)(3,817)33,00433,004(1)(1)

Total changes during current period－－

29,185(1)

29,184

Balance at the end of current period

17,48921,337122,012(3,246)

157,592

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Deferred gains
or losses onhedges

6,276(1,259)Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income
54
(116)
4,954

(769)

1,457

(6)

171

852

Total changes during current period

(769)

1,457

(6)

171

852

Balance at the end of current period

5,506

197

47

55

5,807

Balance at the beginning of current period

Foreigncurrencytranslation
adjustment

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)

Balance at the beginning of current period

Non-controllinginterests
2,793

Total net assets
136,156

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)(3,817)33,004(1)
35,19636,048

Total changes during current period

35,196

65,233

Balance at the end of current period

37,990201,390- 13 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)(4) Consolidated Statements of Cash Flows(Millions of yen)

FY2017(from April 1, 2017
to March 31, 2018)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Gain on negative goodwill
Gain on offsetting assets and liabilities
Loss (gain) on step acquisition
Increase (decrease) in allowance for employees’ bonuses
Increase (decrease) in allowance for directors’ bonuses
Increase (decrease) in net defined benefit liabilities
Decrease (increase) in net defined benefit assets
Interest and dividends income
Interest expenses
Equity in losses (earnings) of affiliates
Loss on retirement of tangible fixed assets
Loss (gain) on sales of tangible fixed assets
Government subsidy
Decrease (increase) in accounts receivable – trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in accounts payable - trade
Increase (decrease) in other current liabilities
Increase (decrease) in other fixed liabilities
OthersSubtotalInterest and dividends received
Interest paid
Income and other taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from purchase of investments in subsidiary
resulting in change in scope of consolidation
Purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchase of intangible fixed assets
Purchase of long-term prepaid expenses
Payments of long-term loans receivable
Proceeds from government subsidy
Other payments
Other proceeds
OthersNet cash provided by (used in) investing activities- 14 -FY2018(from April 1, 2018
to March 31, 2019)

16,523
10,913
138
－
－
－
196
22
89
157
(952)
331
(2,335)116(3)－(2,575)
1,191
(836)
1,011
1,410
(152)
8
25,258944(283)(3,662)
22,25743,027
24,737
117(20,126)(5,626)
2,725
51
19
113
(101)
(357)
3,102
(297)
395
(6)
(207)
(503)
(1,085)(2,378)
68
2,681
(56)
(260)
46,034350(3,439)(8,657)34,288

(25)
(271)
0

(27)
(792)
－

－

46,211(27,410)
2
(691)
(186)
(2)
－
(186)
295
2
(28,474)(53,459)
8
(565)
(6)
(2)
207
(162)
96
4
(8,489)Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)(Millions of yen)

FY2017(from April 1, 2017
to March 31, 2018)
Cash flows from financing activities
Net increase (decrease) of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayments of lease obligations
Dividends paid by parent company
Dividends paid to non-controlling shareholders
OthersNet cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period- 15 -FY2018(from April 1, 2018
to March 31, 2019)200
20,000(7,362)(359)(3,005)
(34)
(0)
9,438

300
40,110(17,224)(180)(3,817)(33)(1)
19,152

0

(8)

3,221
39,10842,32944,94342,32987,273

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)(5) Notes on the Consolidated Financial Statements(Notes on the Premise of a Going Concern)
There is nothing to report.
(Basic Important Conditions to Prepare Consolidated Financial Statements)
1. Scope of consolidation
1) Number of consolidated subsidiaries: 20 companies
Names of consolidated subsidiaries
Tokyo International Air Terminal Corp.
Tokyo Airport Restaurant Co., Ltd.
Japan Duty Free Fa-So-La Isetan Mitsukoshi Co., Ltd
Cosmo Enterprise Co., Ltd.
International Trade Inc.
Japan Airport Logitem Co., Ltd.
BIG WING Co., Ltd.
Japan Airport Techno Co., Ltd.
Air BIC Inc.
Haneda Airport Enterprise Co., Ltd.
Haneda Airport Security Co., Ltd.
Haneda Passenger Service Co., Ltd.
Japan Airport Ground Handling Co., Ltd.
Haneda Future Research Institute Inc.
Japan Airport Terminal Trading (Chengdu) Co., Ltd.
LANI KE AKUA PACIFIC, INC.
Sakura Co., Ltd.
Hamashin Co., Ltd.
CTT Co., Ltd.
Kaikan Development Co., Ltd.
During the current fiscal year, Tokyo International Air Terminal Corp. (TIAT), which had been an affiliatedcompany accounted for using the equity method, became a consolidated subsidiary since payment procedures
were completed with regard to subscribing for a third-party allotment of shares issued by TIAT, and wasincluded in the scope of consolidation.
Haneda Future Research Institute Inc. was newly established during the current fiscal year and included in thescope of consolidation.
2) Non-consolidated subsidiary
Tsukizi Hamashin Co., Ltd.
The non-consolidated subsidiary is small in size, and its total assets, operating revenues, net income/loss, andretained earnings do not have a significant impact on the consolidated financial statements.
2. Application of equity method
1) Number of affiliated company that is accounted for using the equity method: 2 companies
Names of affiliated company that is accounted for using the equity method
Airport Transport Service Co., Ltd.
Japan Airport Delica Inc.
2) A non-consolidated subsidiary and Seikousha Inc. and seven other affiliated companies are not included in thescope of the application of equity method, since the aggregate amounts corresponding to the shares held by theCompany of those companies’ net income/loss and retained earnings do not have a significant impact on thoseof consolidated financial statements.
3. Fiscal year of consolidated subsidiaries
Of consolidated subsidiaries, Japan Airport Terminal Trading (Chengdu) Co., Ltd. and LANI KE AKUAPACIFIC, INC. end the fiscal year on December 31. Necessary adjustments arising from important transactions
during the period between its closing date and the consolidated closing date are made.

- 16 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)

4. Summary of significant accounting policies
1) Valuation standards and methods for important assets(A) Securities(i) Held-to-maturity securities are carried at cost.
(ii) Other securities
Other securities with fair values are stated at fair value based on the market value at the year-end, withvaluation differences included in net assets. Cost of securities sold is determined by the moving averagemethod.
Other securities without fair values are stated at cost based on moving average method.
(B) Derivatives
Derivative financial instruments are stated at fair value.
(C) Inventories
At the Company and major consolidated subsidiaries, inventories are principally stated at cost determined by
the retail method (book value of inventories in the balance sheet is written-down when their profitability
declines). Certain consolidated subsidiaries use last-purchase-price method (book value of inventories in thebalance sheet is written-down when their profitability declines).
2) Depreciation method of important depreciable assets(A) Tangible fixed assets (excluding lease assets)
The Company uses the declining balance method. Consolidated subsidiaries principally use the straight-line
method.
(B) Intangible fixed assets (excluding lease assets)
Amortization of intangible fixed assets is calculated by the straight-line method. Software intended for internal
use is amortized by the straight-line method over its estimated useful life of 5 years.
(C) Lease assets
The straight-line method is adopted in which the lease term is treated as useful life and the asset is depreciatedto zero or residual value.
3) Accounting policies for important allowances(A) Allowance for doubtful accounts
To prepare for losses from doubtful accounts, estimated uncollectible amounts are recorded, which arecomputed either by using historical default rate for normal receivables or by considering individualcollectibility for particular receivables such as highly doubtful accounts.
(B) Allowance for employees’ bonuses
To prepare for the payment of bonuses to employees, the estimated amount is recorded as allowance.
(C) Allowance for directors’ bonuses
To prepare for the payment of bonuses to directors, the estimated amount is recorded as allowance.
(D) Allowance for directors’ retirement benefits
To provide for future payments of retirement benefits to directors, certain consolidated subsidiaries record theamount that would be required at the end of the fiscal period in accordance with their internal rules.
4) Accounting method for employees' retirement benefits(A) Allocation method of projected retirement benefits to each period
The benefit formula method is used to allocate the projected retirement benefits to each period up to the end of
the fiscal year.
(B) Amortization of actuarial gains and losses and prior service costs
Prior service costs are amortized under the straight-line method over a certain number of years within the
average remaining service years (5-10 years). Actuarial gains and losses are amortized, beginning in the year
following their occurrence, under the straight-line method over a certain number of years within the averageremaining service years (5-10 years).
(C) Adoption of simplified methods at small companies
Certain consolidated subsidiaries adopt a simplified method of using the amounts payable for voluntary
retirement of employees at fiscal year-end in calculating net defined benefit liabilities and expenses for- 17 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)

retirement benefits.
5) Recognition of significant revenues and costs
Standards for recognition of revenues and costs of construction contracts(i) Construction of which the percentage of completion by the end of the fiscal year can be reliably estimated
The percentage-of-completion method is used to recognize revenues and costs. Percentage of completion is
calculated based on cost proportion method.
(ii) Other constructions
The completed-contract method is used to recognize revenues and costs.
6) Accounting standards for important hedging transactions(A) Hedge accounting method
Hedging transactions are accounted for under deferred hedge accounting method. Interest rate swaps that meetcertain conditions are accounted for using special treatment.
(B) Hedging instrument and hedged item
Hedging instrument ----------- Interest rate swap
Hedged item -------------------- Floating rate borrowings(C) Hedging policy
Hedging transactions are executed to avoid the risk of interest rate fluctuation, and our basic policy is that they
are not used for speculation purposes.
(D) Evaluation of hedging effectivenessThe effectiveness of hedging is evaluated by comparing the cumulative changes of hedging instruments andcorresponding changes in underlying hedged items. The evaluation is omitted regarding interest rate swaps
that meet the requirements for special treatment.
7) Scope of “Cash and cash equivalents” in consolidated statements of cash flows“Cash and cash equivalents” in the consolidated statements of cash flows consist of cash on hand, deposits
with banks that are withdrawable on demand, and short-term investments which are easily convertible to cashwith insignificant risk of values whose maturity will come within three months.
8) Capitalization of borrowing costs
At certain consolidated subsidiaries, interest costs and related expenses on borrowings during construction
period of passenger terminals and other facilities are included in acquisition cost (¥174 million for FY 2018,¥4,300 million for accumulated amount as of March 31, 2019) and recorded as tangible asset.
9) Other important matters regarding preparing consolidated financial statements
Consumption Taxes
Consumption taxes are excluded from transaction amounts.

(Notes on Changes in Presentation)
Partial Amendments to Accounting Standard for Tax Effect Accounting“Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28 issued on
February 16, 2018) has been applied from the beginning of FY2018. Accordingly, “deferred tax assets” arepresented under “investments and other assets”, while “deferred tax liabilities” are presented under “fixedliabilities”.

- 18 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)(Notes on Consolidated Balance Sheets)
1. Assets pledged as collateral and corresponding liabilities with collateral
The following are assets pledged as collateral.
(Millions of yen)

FY2017(As of March 31, 2018)－－
62,456－53－
62,510Cash and deposits
Accounts receivable
Buildings and structures
Machinery, equipment and vehicles
Land
Other investments
Total

FY2018(As of March 31, 2019)
54,37947
184,937
1,576
53
1,000
241,994

The followings are liabilities for which assets are pledged as collateral.
(Millions of yen)

FY2017(As of March 31, 2018)
3,600
2,550
6,150

Short-term loans payable
Long-term loans payable
Total

FY2018(As of March 31, 2019)
1,700
98,277
99,977

2. The following items are related to non-consolidated subsidiaries and affiliated companies.
(Millions of yen)

FY2017(As of March 31, 2018)
10,005
6,660

Investment securities (shares)
Investment securities (corporate bonds)

FY2018(As of March 31, 2019)
1,942－

3. Liabilities guaranteed
The Company provides a guarantee to the following group company for its borrowing from financial institutions.
(Millions of yen)

FY2017(As of March 31, 2018)
Japan Airport Delica Inc.
225
(borrowing)
548 million yen

FY2018(As of March 31, 2019)Japan Airport Delica Inc.
225
(borrowing)
548 million yen

4. Amount of reduction entry
Due to receipt of government subsidy, etc. for the acquisition of assets, reduction entry of the following amount isdeducted from the acquisition costs of tangible fixed assets.
(Millions of yen)

Buildings and structures

FY2017(As of March 31, 2017)88- 19 -FY2018(As of March 31, 2019)88

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)(Notes on Consolidated Statements of Income)
1. Impairment loss
The JAT Group recognized impairment loss on the assets as follows:
FY2017 (from April 1, 2017 to March 31, 2018)
Location
Use
Type
Impairment loss
Izumisano, Osaka
Store (Merchandise
Buildings and structures, others,
97 million yen
sales), etc.
intangible fixed assets
Narita, Chiba andUnused landLand
41 million yenother locations
The JAT Group classifies assets into groups primarily according to business locations.
By examining impairment for fixed assets based on the groupings, it was judged that the carrying amount of thestores and other assets at Kansai International Airport directly operated by the Company is not recoverable in the
future. The entire carrying amount of those assets was recognized as impairment loss. The loss consists of ¥58
million for buildings and structures, ¥34 million for others, and ¥4 million for intangible fixed assets.
As for the unused land whose market value significantly fell below the carrying amount, the carrying amount
was reduced to the recoverable value and the reduced amount was recognized as impairment loss of ¥41 million in
extraordinary loss.
Recoverable values of those assets were measured as net realizable values, which were based on real estateappraisal standards and other methods.

FY2018 (from April 1, 2018 to March 31, 2019)
Location
Use
Ota-ku, Tokyo
Incinerator

TypeConstruction in progress

Impairment loss
117 million yen

The JAT Group classifies assets into groups primarily according to business locations.
By examining impairment for fixed assets based on the groupings, since the plan to construct incinerator wascancelled by the consolidated subsidiary, the carrying amount was reduced to the recoverable value and the reduced
amount was recognized as impairment loss of ¥117 million in extraordinary loss. Recoverable value was measured
as zero based on its value in use.
2. Gains on sales of fixed assets(Millions of yen)

FY2017(from April 1, 2017
to March 31, 2018)
1

FY2018(from April 1, 2018
to March 31, 2019)
－

4
2
－
7

FY2018(from April 1, 2018
to March 31, 2019)
273
0
41
315

Land

3. Loss on retirement of fixed assets(Millions of yen)

FY2017(from April 1, 2017
to March 31, 2018)
Buildings and structures
Machinery, equipment and vehicles
Furniture and fixtures
Total- 20 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)(Notes on Consolidated Statements of Cash Flows)
Relationship between the closing balance of cash and cash equivalents and the value of items listed on the consolidatedbalance sheets(Millions of yen)

FY2017(from April 1, 2017
to March 31, 2018)
42,487(157)
42,329Cash and deposits
Time deposits with a maturity greater than 3 months
Cash and cash equivalents

FY2018(from April 1, 2018
to March 31, 2019)87,458(185)
87,273(Segment Information)
Segment Information
1. Overview of reportable segments
The reportable segments of the Group are units for which separate financial information is available and whose
operating results are regularly reviewed by the Board of Directors in order to decide how to allocate management
resources and evaluate their performances.
The Company is primarily engaged in the management of passenger terminal buildings and the provision ofservices to users at Haneda Airport. Business divisions at the Company’s headquarters develop comprehensive
business strategies and pursue business activities.
The Company is, therefore, composed of business segments with different services based on the businessdivisions. Its three reportable segments are the facilities management operations, merchandise sales operations, andfood and beverage operations.
The segment of facilities management operations leases, maintains and repairs, and operates passenger terminal
facilities at Haneda Airport. It also provides services for passengers. The segment of merchandise sales operations is
engaged in retail sales of products to passengers and others, wholesales of products to companies operating airport
terminals and others, and other activities incidental to these two sales operations. The segment of food and beverage
operations provides food and beverage services to parties including users of Haneda Airport and Narita International
Airport. It is also engaged in the production and sales of in-flight meals and other incidental activities.
2. Method of calculations of sales, income (loss), assets, liabilities, and other items by reportable segments
Accounting methods for reportable business segments are, in general, the same as those described in “Basic
Important Conditions to Prepare the Consolidated Financial Statements.”
Segment income is based on operating income. Intersegment sales and transfers are based on prevailing market
price.
3. Sales, income (loss), assets, liabilities, and other items by reportable segments
FY2017 (from April 1, 2017 to March 31, 2018)(Millions of yen)

Reportable segments

Consolidated
financialstatements(Notes 2)

Facilities
Management

MerchandiseSales

58,443

147,787

19,722225,953－

225,953

2,007

860

2,563

5,431

(5,431)－60,451
6,714
120,867

148,647
11,32238,55822,285896
15,511

231,385
18,934
174,936(5,431)(5,504)64,452225,953
13,429239,389

Depreciation andamortization

9,005

1,024

475

10,505408

10,913

Increase in tangible fixed
assets and intangible fixed
assets25,946

1,245

400

27,591

998

28,590Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income
Segment assets
Other items

Food andBeverage

Adjustments(Notes 1)- 21 -Total

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)(Notes) 1. Details of adjustments are as follows:(1) Adjustments to the segment income include ¥5,513 million of administration expenses for the parent company’s
administration and other divisions at head office which are not allocated to each of the reportable segments.
(2) Adjustments to the segment assets include ¥77,969 million of corporate assets which are not allocated to each of thereportable segments, which includes excess funds managed by parent company, long-term investment (investment
securities), assets related to administration divisions and other assets.
(3) Adjustments to depreciation and amortization include ¥420 million of depreciation with regard to administration
divisions at head office of parent company which are not allocated to each of the reportable segments.
(4) Adjustments to increase in tangible fixed assets and intangible fixed assets (¥998 million) are primarily due to acquisitionof a company dormitory for employees of parent company’s head office.
2. Segment income is adjusted with operating income recorded in the Consolidated Statements of Income.

FY2018 (from April 1, 2018 to March 31, 2019)(Millions of yen)

Reportable segments

Consolidated
financialstatements(Notes 2)

Facilities
Management

Merchandise
Sales

82,050171,472

20,095

273,618－

273,618

5,533

1,523

2,518

9,574

(9,574)－87,584
14,339329,373

172,996
15,76048,24522,613880
16,769283,193
30,979394,387(9,574)(8,497)
90,267

273,618
22,481
484,654

Depreciation andamortization

21,974

1,609

558

24,142594

24,737

Increase in tangible fixed
assets and intangible fixed
assets54,4672,944

231

57,643479

58,123Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income
Segment assets
Other items

Food andBeverage

Adjustments(Notes 1)

Total(Notes) 1. Details of adjustments are as follows:(1) Adjustments to the segment income include ¥8,506 million of administration expenses for the parent company’s
administration and other divisions at head office and certain subsidiaries which are not allocated to each of the reportablesegments.
(2) Adjustments to the segment assets include ¥134,993 million of corporate assets which are not allocated to each of thereportable segments, which includes excess funds managed by parent company, long-term investment (investment
securities), assets related to administration divisions, special purpose funds of certain subsidiaries and other assets.
(3) Adjustments to depreciation and amortization include ¥599 million of depreciation with regard to administration
divisions at head office of parent company and certain subsidiaries which are not allocated to each of the reportablesegments.
(4) Adjustments to increase in tangible fixed assets and intangible fixed assets (¥479 million) are primarily due to acquisitionof a company dormitory for employees of parent company’s head office.
2. Segment income is adjusted with operating income recorded in the Consolidated Statements of Income.

Related Information
FY2017 (from April 1, 2017 to March 31, 2018)
1. Information by product and service
Sales to external customers by product and service is equivalent to the amount described in segment
information, thus the information is omitted.
2. Information by area
(1) Operating revenues
Operating revenues in Japan account for more than 90% of the operating revenues recorded in theConsolidated Statements of Income, thus the information is omitted.
- 22 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)(2) Tangible fixed assets
Tangible fixed assets in Japan account for more than 90% of the tangible fixed assets recorded in theConsolidated Balance Sheet, thus the information is omitted.
3. Information by major customer
Not applicable
FY2018 (from April 1, 2018 to March 31, 2019)
1. Information by product and service
Sales to external customers by product and service is equivalent to the amount described in segment
information, thus the information is omitted.
2. Information by area
(1) Operating revenues
Operating revenues in Japan account for more than 90% of the operating revenues recorded in theConsolidated Statements of Income, thus the information is omitted.
(2) Tangible fixed assets
Tangible fixed assets in Japan account for more than 90% of the tangible fixed assets recorded in theConsolidated Balance Sheet, thus the information is omitted.
3. Information by major customer
Not applicable
Information on impairment loss of fixed assets by reportable segment
FY2017 (from April 1, 2017 to March 31, 2018)(Millions of yen)

Impairment Loss

Facilities
Management－

Merchandise
Sales
97

Corporation /Elimination

Food andBeverage
－

Total

41

138

FY2018 (from April 1, 2018 to March 31, 2019)(Millions of yen)

Impairment Loss

Facilities
Management
117

Merchandise
Sales－

Corporation /Elimination

Food andBeverage
－

－

Total
117

Information on amortized amount and unamortized balance of goodwill by reportable segment
FY2017 (from April 1, 2017 to March 31, 2018)
Not applicable
FY2018 (from April 1, 2018 to March 31, 2019)
Not applicable
Information on gain on negative goodwill by reportable segment
FY2017 (from April 1, 2017 to March 31, 2018)
Not applicable
FY2018 (from April 1, 2018 to March 31, 2019)
The Company completed the acquisition of shares in TIAT, which changed TIAT’s status for our consolidated
accounting to a consolidated subsidiary. Though ¥20,126 million was recorded as gain on negative goodwill asa result of the acquisition, the amount is not allocated to reportable segment.

- 23 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)(Per Share Information)(Yen)

FY2017FY2018(from April 1, 2017(from April 1, 2018
to March 31, 2018)
to March 31, 2019)
Net assets per share
1,641.82
2,011.61
Net income per share
144.98406.31
Diluted net income per share
138.37388.03
Notes: Net income per share and diluted net income per share are calculated based on the following:(Millions of yen, except for number of shares)

FY2017(from April 1, 2017
to March 31, 2018)
Net income per share
Net income attributable to owners of the parent
Amount not attributable to common shareholders
Net income attributable to owners of the parent
available for distribution to common shareholders
Average number of shares outstanding during theperiod (thousand shares)
Diluted net income per share
Adjustments to net income attributable to owners of
the parent[Interest income] net-of-tax
Increase in common shares (thousand shares)[Bonds with stock acquisition rights (thousand
shares)]Description of potential shares which were notincluded in computing diluted net income per shareas they have no dilutive effect.
(Significant Subsequent Events)
Not applicable- 24 -FY2018(from April 1, 2018
to March 31, 2019)11,776－33,004－

11,77633,004

81,22881,228

-17

-17

[-17]
3,753

[-17]
3,780

[3,753][3,780]－－Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2019 (FY2018)

4.

Others

Production, orders received and sales
As for production and other results, the JAT Group finds it difficult to present production and orders received foreach segment.
Therefore, regarding the status of production, orders received, and sales, please see “1. Analysis of Business andFinancial Results” in relation to the financial results for each segment.
Operating revenues the current fiscal year were as follows:(Millions of Yen)FY2017(from April 1, 2017
to March 31, 2018)
58,443
13,27818,754
26,410147,787
35,15335,497
77,136
19,722
9,846
6,588
3,286
225,953

FY2018(from April 1, 2018
to March 31, 2019)82,05017,45443,50521,090171,472
36,212
98,51536,74520,095
12,5146,764
816
273,618

FY2017(from April 1, 2017
to March 31, 2018)
616,142
232,648
221,258
122,754
56,291
42,212FY2018(from April 1, 2018
to March 31, 2019)874,602274,206
268,740
149,545
63,38155,814

Facilities Management
Rent revenue
Facility user charges revenue
Other revenues
Merchandise Sales
Sales at domestic terminal shops
Sales at international terminal shops
Other sales
Food and Beverage
Sales from food and beverage operations
Sales from in-flight meals
Other sales
Total
Notes
1) The amounts above do not include consumption taxes.
2) Data on leasing regarding rental revenue in Facilities Management is summarized as follows:(㎡)

Total floor space owned by the JAT Group
Total leasable floor space
Total leased floor space
Airlines
General tenants
Used by the JAT Group- 25 -