Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019) [J-GAAP](Consolidated)
February 5, 2020
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:
Code number:
Representative:
Contact:

Japan Airport Terminal Co., Ltd.
Listed stock exchange: Tokyo, 1st Section
9706
URL: https://www.tokyo-airport-bldg.co.jp/company/en/
Nobuaki Yokota, President and COO
Kazuhito Tanaka, Managing Director
TEL 03-5757-8409
Scheduled date of filing securities report:
February 13, 2020
Scheduled date of commencing dividend payment:
Supplementary materials on financial results (yes/no)
No
Holding of quarterly earnings announcement (yes/no)
No(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the First Nine Months of FY2019 (April 1, 2019 to December 31, 2019)(1) Consolidated Business Results (Cumulative)%: Change from the same period of the previous year

Operating revenues

Operating income

Net income attributable toowners of the parent

Ordinary income

First Nine
Months ofMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

FY2019FY2018203,451
207,353-1.9
24.4

15,764
19,411-18.8
84.5

14,907
17,714

-15.8
33.0

8,162
31,470

-74.1
229.3

(Note) Comprehensive income: First nine months of FY2019 ¥10,703 million (-68.9%)

First Nine
Months of

Net income per
share
Yen

Diluted net income
per shareYen

100.49387.4395.84
370.04FY2019FY2018First nine months of FY2018 ¥34,423 million (204.9%)(2) Consolidated Financial Position
Total assets

Net assets per share

Millions of yen

Millions of yen%

Yen

488,245484,654

208,484
201,39034.5
33.7

2,072.59
2,011.61

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

Equity capital tototal assets

Net assets

As of December 31, 2019 ¥168,353 million

As of March 31, 2019 ¥163,399 million

2. Dividends
Dividends per share
Q1-EndFY2018FY2019FY2019 (Forecast)

Q2-EndQ3-EndYear-End

Annual

Yen

Yen

Yen

Yen

Yen

-

23.00
22.00

-

22.00

45.00

20.00

42.00

(Note) Revisions to the most recently announced dividends forecast for FY2019: No

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

Full-year

Net income attributableto owners of the parent

Ordinary income

Net income
per share

Operating revenues

Operating income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

275,700

0.8

16,700-25.7

15,100

-25.9

8,300

-74.9

102.18(Note) Revisions to the most recently announced forecast of consolidated financial results for FY2019: No

* Notes(1) Significant changes in subsidiaries during the period under review (changes in specified subsidiaries involving changes in scope of
consolidation): No
New: None
Excluded: None
(2) Adoption of special accounting methods for preparation of quarterly consolidated financial statements: Yes(Note) For details, please refer to page 11 of the appendix materials “2. Quarterly Consolidated Financial Statements and Notes(3) Notes on Quarterly Consolidated Financial Statements: Adoption of Special Accounting Methods for Preparation of
Quarterly Consolidated Financial Statements”.
(3) 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
(4) Number of shares outstanding (common stock)1) Number of shares outstanding at the period-end (including treasury stock):
As of December 31, 201984,476,500 shares
As of March 31, 20192) Number of treasury stock at the period-end:
As of December 31, 2019
3,248,164 shares
As of March 31, 20193) Average number of shares outstanding (quarterly consolidated cumulative period):
Third quarter of FY2019
81,228,443 shares
Third quarter of FY2018

84,476,500 shares
3,247,973 shares
81,228,673 shares* This quarterly financial report is not subject to the quarterly review 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 the Company had in its possession as of thetime this report was prepared and on certain assumptions judged to be reasonable. The Company makes no guarantee that thesefigures will be achieved. Actual results may differ significantly from forecasts due to various factors. For the assumptions used infinancial forecast and precautionary statements regarding the use of the forecasts, please refer to page 5 of the appendix materials “1.
Qualitative Information on Consolidated Financial Results for the First Nine Months of FY2019 (3) Explanation of Consolidated
Financial Forecasts and Other Forward-looking Statements”.

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019)

Contents of the Appendix Materials
1. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST NINE
MONTHS OF FY2019 (APRIL 1, 2019 TO DECEMBER 31, 2019) ............................................................................... - 2 (1) EXPLANATION OF OPERATING RESULTS ................................................................................................... - 2 (2) EXPLANATION OF FINANCIAL POSITION ................................................................................................... - 5 (3) EXPLANATION OF CONSOLIDATED FINANCIAL FORECASTS AND OTHER FORWARD-LOOKING STATEMENTS- 5
2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ...................................................... - 6 (1) QUARTERLY CONSOLIDATED BALANCE SHEETS ....................................................................................... - 6 (2) QUARTERLY CONSOLIDATED STATEMENTS OF INCOME AND QUARTERLY CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME .................................................................................................................... - 8 Quarterly Consolidated Statements of Income ............................................................................................... - 8 Quarterly Consolidated Statements of Comprehensive Income ...................................................................... - 10 (3) NOTES ON QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS .......................................................... - 11 (NOTES ON THE PREMISE OF A GOING CONCERN) ........................................................................................ - 11 (NOTES ON A SIGNIFICANT CHANGE IN SHAREHOLDERS’ EQUITY) ............................................................... - 11 (ADOPTION OF SPECIAL ACCOUNTING METHODS FOR PREPARATION OF QUARTERLY CONSOLIDATEDFINANCIAL STATEMENTS) .................................................................................................................... - 11 (SEGMENT INFORMATION, ETC.) .................................................................................................................. - 12 (SIGNIFICANT SUBSEQUENT EVENTS) ......................................................................................................... - 13 --1-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019)

1. Qualitative Information on Consolidated Financial Results for the First Nine Months of FY2019(April 1, 2019 to December 31, 2019)(1) Explanation of Operating Results
During the first nine months of the fiscal year ending March 31, 2020, the Japanese economy has
experienced a gradual recovery, though exports have continued to show some signs of weakness driven by
the increasing weakness in the manufacturing sector. Looking ahead, despite the near-term prospect of
weakness, continuing improvement in employment and income, coupled with various government policies, is
expected to support moderate economic recovery. However, the situation requires close attention to thechange in consumer sentiment after the increase in consumption tax rate.
With respect to our business environment, although the sharp decrease in visitors from Korea iscontinuing since August 2019, the volume of inbound tourists from every region except Korea is exceedingthat of the same period during the previous year, due to factors such as visitors for the Rugby World Cup
2019 hosted in Japan. In addition, recovering from the drop in 2018 suffered by natural disasters, the total
accumulated number of inbound tourists in 2019 (January to December) has reached a record high of 31.88
million despite negative effects suffered by the typhoons in September and October 2019. However, it isimportant to prudently monitor various issues, such as the effect of the emergence of novel virus in China on
passenger demand, in addition to the trend in number of visitors from Korea and the uncertainty of China’s
economic outlook.
Under these circumstances, the Japan Airport Terminal group (“JAT Group”) has embraced its long-term
vision “To be a World Best Airport” that aspires to best satisfy the needs of all stakeholders. To achieve thislong-term vision, JAT Group is implementing various measures based on three strategic pillars: 1) Pursuit of
the ideal of Haneda Airport, 2) Expansion of our business domain utilizing our strengths and thediversification of profits, and 3) Reconstruction of our profit base and the building of competitive advantages.
Our management priorities for FY 2019 include preparations for operation after the opening of Haneda
international facilities, an appropriate response to changes in the consumption trend of Chinese travelers toJapan, and the implementation of our profit plan to ensure that we accomplish our guidelines for FY 2020.
Especially for “preparations for opening of Haneda international facilities”, while air transport businessplans are being announced by domestic and foreign airline companies based on the allocation of the increased
flight slots of international flights at Haneda Airport announced by Ministry of Land, Infrastructure,
Transport and Tourism (“MLIT”) in September 2019, we are proceeding with our preparation as planned forthe name change of the International Terminal to Terminal 3 on March 14, 2020 and commencement ofoperation of the Terminal 2 international flight facility on March 29, 2020. As part of these efforts, theexpansion of office space at the north side of Terminal 2 has been completed in October 2019 and the space
is being rented to airline companies. In advance of the expansion of the International Terminal, two boarding
gates and expansion part of departure and arrival lobby have also commenced operation in December 2019.
In addition, in order to respond to increasing volume of international passengers, we have improved security
screening lanes to enhance customer convenience. For the commercial facility within the airport, we will
open “Tokyo 2020 Official Shop” and renew the existing shops at the domestic terminals and renew theluxury brand stores at the international terminal in order to prepare for the increase in international flights.
We have announced to acquire the shares of AGP Corporation (“AGP”) in November 2019 andcompleted the acquisition in February 2020, turning AGP into an associate accounted for using equity
method. By combining our expertise in airport terminal operation and AGP’s know-how of ground handlingbusiness, we believe we can create synergies in expanding our business domains and applying them to ourdomestic and overseas airport terminal operation in line with our long-tern vision.
As part of our ESG related effort, we started our support to “Japan Public-Private Partnership Student
Study Abroad Program (TOBITATE! Young Ambassador Program)” and installed vending machines that
accept donation and started broadcasting video advertising to encourage studying abroad whereby
contributing to global human resource development across Japan.
Water supplies have been disrupted within Haneda Airport in November 2019, which resulted in closuresof restaurants and suspension of water at hand-washing at restrooms at Terminal 2. Until the water supply
from the operator resumed, we provided plastic bottled drinking water for hand-washing use and made efforts
with all the staff to minimize the inconvenience caused to our customers. MLIT has set up an exploratorycommittee consisting of experts in December 2019 and the investigation for the cause is continuing to takeplace.
Under these circumstances, regarding consolidated financial results for the first nine months of the fiscal
year ending March 31, 2020, operating revenues decreased 1.9% compared with the same period during theprevious year to ¥203,451 million primarily due to decline in merchandise sales. The decline in revenue,
coupled with the increase in expense related to facilities and one-time expenses such as real estate acquisition
tax on the acquisition of a new training facility caused operating income to fall to ¥15,764 million (down
18.8% year-on-year). Ordinary income, without the one-time expense due to financing in the previous year,-2-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019)was ¥14,907 million (down 15.8% year-on-year). Without the one-off extraordinary income due toconsolidation of TIAT in the previous fiscal year, net income (attributable to owners of the parent) was¥8,162 million (down 74.1% year-on-year).
(Millions of yen)

Operating Results

First Nine Months of FY2018(ended December 31, 2018)

First Nine Months of FY2019(ended December 31, 2019)Year-on-Year(%)

207,353
61,550130,523
15,27919,411
17,714203,451
64,474
123,438
15,53815,764
14,907

-1.9
4.8
-5.4
1.7
-18.8
-15.8

31,470

8,162

-74.1

Operating revenues[Facilities Management][Merchandise Sales][Food and Beverage]
Operating income
Ordinary income
Quarterly net income attributable toowners of the parent

In the Skytrax (UK) “Global Airport Rating” published in November 2019, Haneda Airport’s passenger
terminals were awarded the world’s highest standard “5-star Airport” for six consecutive years.
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 a high 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
equivalent to those under segment income.
Overview by Segment[Facilities Management](Millions of yen)

Operating Results

First Nine Months of FY2018(ended December 31, 2018)

First Nine Months of FY2019(ended December 31, 2019)Year-on-Year(%)

61,55013,08832,782
15,6793,721
65,271
12,18364,474
13,66933,437
17,366
4,066
68,540
10,222

4.8
4.4
2.0
10.8
9.3
5.0
-16.1

Facilities Management
Rent revenue
Facility user charges revenue
Other revenues
Intersegment sales and transfers
Total of Operating Revenues
Segment income

Rent revenue rose from the same period of the previous year due to the opening of “THE HANEDA
HOUSE” in the previous fiscal year and an increase in rental spaces to airline companies including floor
expansion of office space at the north side of Terminal 2 in October 2019.
Revenue from facility user charges rose from the same period of the previous year because growth ininternational passenger traffic increased user charges revenue despite the negative impacts on revenues due tothe decision to keep the level of user charges for domestic terminals unchanged even after the consumption tax
hike in October 2019 and decline in passenger volume caused by Typhoon 19.
Other revenues rose from the same period of the previous year primarily because of revenue increase incontracting construction work and security and other outsourced operations and the expansion of P4 parking inMarch 2019, which boosted parking revenue. In addition, the increase in advertising revenue at internationalterminal and the revenue from lounges for both domestic and international terminals increased as a result of
the renovation of the “POWER LOUNGE” for domestic passengers also contributed to its growth.
As a result, operating revenues from facilities management operations increased to ¥68,540 million (up5.0% year-on-year). Operating income for the segment decreased to ¥10,222 million (down 16.1%
year-on-year). The decrease was because depreciation expense and operating expenses increased as a result of
the boarding stations and the satellite facility near Terminal 2 and the expansion of P4 parking that opened
during the previous year and expansion part in international terminal that began in December 2019 andbecause one-time costs were recorded such as the increase in maintenance expense upon the completion ofrenovation work of Terminal 1 in September 2019 and floor expansion of office space at the north side ofTerminal 2 in October 2019.
-3-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019)[Merchandise Sales](Millions of yen)

Operating Results

First Nine Months of FY2018(ended December 31, 2018)

First Nine Months of FY2019(ended December 31, 2019)Year-on-Year(%)

130,523
27,754

123,438
27,415-5.4-1.2

74,36870,540-5.1

28,401
902
131,426
12,65825,482
751
124,190
11,146

-10.3
-16.7
-5.5
-11.9

Merchandise Sales
Sales at domestic terminal stores
Sales at international terminal
storesOther revenues
Intersegment sales and transfers
Total of Operating Revenues
Segment income

Sales at domestic terminal stores fell from the same period of the previous year due to decline in sales ofclosed stores such as Isetan Haneda Store (men’s) in Terminal 2 as construction work progressed on the
expansion of Terminal 2 and effect of Typhoon 19 in October 2019, despite proactive sales growth efforts
involving promotional events including launch of the official store for Japan’s rugby national team during the2019 Rugby World Cup and opening of “Tokyo 2020 Official Shop” for the Tokyo Olympics and Paralympics.
Sales at international terminal stores at Haneda Airport slightly exceeded the same period of the previous
year due to the renewal effect of TIAT DUTY FREE SHOP CENTRAL and passenger growth despite thenegative effect of Typhoon 19. Sales at duty free shops at Narita Airport and airport-style in-city duty-free
shops decreased from the same period of the previous year due to temporary closures of shops during therenovation period in the 1st half coupled with the continued decline in consumption by Chinese travelers,
despite increased numbers of flights from China since the end of October 2019 and opening of a new area incollaboration with Shiseido Group at the airport-style in-city duty-free shop “Japan Duty Free GINZA.” The
total sales at duty-free shops is exceeding the accumulated sales during the first nine months of the year before
the last fiscal year and has continued an upward trend, but the rate of increase is slowing down. We willcontinue our efforts to further increase sales by capturing the increasing volume of inbound tourists especiallyfrom China and positive effects on sales through renovation of the shops to the maximum extent possible.
Other revenues fell below the same period of the previous year due to a decrease in the wholesaling
business and outsourced store operations at Narita Airport and a decrease in wholesale business at regional
airports resulting from the decrease in inbound tourists from Korea.
As a result, operating revenues from merchandise sales operations decreased to ¥124,190 million (down
5.5% year-on-year) and operating income fell to ¥11,146 million (down 11.9% year-on-year) due to theincrease in one-time cost for the renovation of duty free shops and airport-style in-city duty-free shop at Narita
Airport in addition to the effect of revenue decline.
[Food and Beverage](Millions of yen)

Operating Results

First Nine Months of FY2018(ended December 31, 2018)

First Nine Months of FY2019(ended December 31, 2019)Year-on-Year(%)

15,27915,538

1.7

9,561

9,580

0.2

5,107
610
1,943
17,223
766

5,268
689
1,945
17,484
796

3.1
13.0
0.1
1.5
3.9

Food and Beverage
Sales from food and beverage
storesSales from in-flight meals
Other revenues
Intersegment sales and transfers
Total of Operating Revenues
Segment income

Sales from food and beverage operations slightly increased from the same period of the previous year
driven by the growth of international passenger volume, though sales decreased at Haneda’s domestic
terminals due to closures of food and beverage shops during the expansion construction period and negative
effect of Typhoon 19.
Sales from in-flight meals rose from the same period of the previous year due to an increase in thepassenger numbers of foreign carriers, our clients in this business.
As a result, operating revenues from food and beverage operations increased to ¥17,484 million (up 1.5%
year-on-year). Operating income for the segment amounted to ¥796 million (up 3.9% year-on-year) because of-4-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019)

revenue growth and cost-saving efforts in procurement and other costs.
(2) Explanation of Financial Position[Assets]
Regarding current assets, cash and deposits decreased due to payment of usage fee for government-owned
properties. Fixed assets increased due to the increase in the buildings and structures resulting from thecompletion of expansion work of International Terminal and floor expansion of office space at the north sideof Terminal 2, despite the progress of depreciation of buildings and structures. As a result, total assets
increased by ¥3,590 million from the previous fiscal year end to ¥488,245 million.
[Liabilities]
Liabilities decreased due to payment of accrued expenses booked at the previous fiscal year end,
combined with the repayment of long-term loans payable despite new borrowings. As a result, total liabilities
decreased by ¥3,503 million from the previous fiscal year end to ¥279,761 million.
[Net Assets]
While dividend distribution was made, quarterly income attributable to owners of the parent increased
retained earnings and non-controlling interests. As a result, total net assets increased by ¥7,094 million fromthe previous fiscal year end to ¥208,484 million.
As a result, the equity ratio was 34.5% (compared to 33.7% at the previous fiscal year end).
(3) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements
With regard to full-year forecasts, there is a possibility that emergence of the novel virus in China will
dampen the passenger demand, although we expect continued growth in the volume of inbound tourists. We areconcerned about further negative impacts such as suspension of flights to and from China. Nevertheless, since
the outlook is unclear, the forecasts of full-year consolidated results have been left unchanged at this point andclose attention will be paid to the development of the situation.

-5-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019)

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly 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
Deferred tax assets
Net defined benefit assets
Other investments
Total investments and other assets
Total fixed assets
TOTAL ASSETS-6-

FY2018(As of March 31, 2019)

First Nine Months of
FY2019(As of December 31,
2019)87,458
17,95910,968
141
7,306
(16)
123,817

76,974
20,564
12,731
194
11,662(17)
122,110459,499(261,619)
197,879
23,945(13,457)
10,488
11,371
1,261
(695)
565
58,98859,926(46,826)
13,099292,393491,262(272,786)
218,476
26,502(14,720)
11,781
12,881
2,717
(856)
1,860
38,962
62,463(49,732)
12,731
296,693

37,0502,586
39,63735,6672,279
37,946

16,835
6,981
1,385
3,604
28,806360,837
484,654

19,784
6,782
1,494
3,434
31,494366,135
488,245

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019)(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-7-

FY2018(As of March 31, 2019)

First Nine Months of
FY2019(As of December 31,
2019)

9,774
12,724

11,522
13,31915,01315,002

13,547
4,482
1,725
269
10,35567,894

8,556
1,827
867
199
13,867
65,162

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

11,021
15,023
160,789
1,646
13,533
51
4,034
484
8,014
214,598
279,761

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

17,48921,337
126,601(3,247)
162,180

5,506

5,531

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

454
30
156
6,172
40,131
208,484
488,245

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019)(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income(Millions of yen)

Operating revenues
Rent revenue
Facility user charges revenue
Other revenues
Sales of merchandise
Sales 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 earnings of affiliates
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of fixed assets
Miscellaneous expenses
Total non-operating expenses
Ordinary income-8-First Nine Months of
FY2018(from April 1, 2018
to December 31, 2018)

First Nine Months of
FY2019(from April 1, 2018
to December 31, 2019)13,08832,782
15,869130,333
15,279207,353

13,66933,437
17,605
123,200
15,537
203,451

92,2508,323
100,573
106,780

86,7508,248
94,999108,452

9,520
759
178
721
12,781
22,26818,09623,04187,36919,411

10,121923
190
676
12,501
21,767
19,752
26,75592,68815,764

20
328
247
737
1,334

19
361
222
1,056
1,660

2,325
59
646
3,031
17,714

2,145
146
225
2,517
14,907

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019)(Millions of yen)

Extraordinary gains
Gains on sales of fixed assets
Gain on offsetting assets and liabilities
Gain on negative goodwill
Government subsidy
Total extraordinary gains
Extraordinary loss
Loss on retirement of fixed assets
Loss on reduction of fixed assets
Loss of step acquisition
Other extraordinary loss
Total extraordinary loss
Quarterly income before income taxes and non-controllinginterests
Income taxes – current
Quarterly income
Quarterly net income attributable to non-controllinginterests
Quarterly net income attributable to owners of the parent-9-First Nine Months of
FY2018(from April 1, 2018
to December 31, 2018)

First Nine Months of
FY2019(from April 1, 2019
to December 31, 2019)

5,626
20,126207
25,960

81
419
501

196
2,725
62
2,984

429
320
749

40,68914,6607,018
33,671

4,572
10,087

2,201

1,924

31,4708,162

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019)

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)

Quarterly income before minority 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- 10 -First Nine Months of
FY2018(from April 1, 2018
to December 31, 2018)
33,671First Nine Months of
FY2019(from April 1, 2019
to December 31, 2019)10,087

(894)
234
(2)
139

18
503
(17)
102

1,273

9

751
34,423616
10,70332,092

8,528

2,330

2,175

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019)(3) Notes on Quarterly Consolidated Financial Statements(Notes on the Premise of a Going Concern)
Not applicable(Notes on a Significant Change in Shareholders’ Equity)
Not applicable(Adoption of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements)
Calculation of tax expenses
The effective tax rate on income before taxes for the consolidated fiscal year including the third quarter after theapplication of tax effect accounting is reasonably estimated, and that estimated rate is applied to net income forthe quarterly period to calculate estimated tax expenses.

- 11 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019)(Segment Information, etc.)
Segment Information
I.

First nine months of FY2018 (from April 1, 2018 to December 31, 2018)
1. Sales and income (loss) by reportable segment(Millions of yen)

Reportable segments

Quarterly
consolidated
financialstatements Note2

Facilities
Management

MerchandiseSales

61,550130,523

15,279207,353-

207,353

Intersegment sales
and transfers

3,721

902

1,943

6,567

(6,567)-

Total
Segment income (loss)

65,271
12,183

131,426
12,65817,223766

213,92125,609(6,567)(6,197)

207,353
19,411

Operating revenues
Sales to externalcustomers(Notes)Food andBeverage

Adjustments
Total

Note 1

1. Adjustments to the segment income include ¥6,209 million of administration expenses for administration divisions at parent company’shead office and some of the subsidiaries which are not allocated to each of the reportable segments.
2. Segment income is adjusted with operating income recorded in the Quarterly Consolidated Statements of Income.
3. During the first quarter, with the acquisition of TIAT’s shares, TIAT became included in the scope of consolidation.
Accordingly, amount of assets in each reportable segment increased by ¥174,977 million for “Facilities Management”, ¥6,197 million for“Merchandise Sales”, and ¥576 million for “Food and Beverage”.

2. Information on impairment loss on fixed assets and goodwill, etc., by reportable segment
Not applicable

II. First nine months of FY2019 (from April 1, 2019 to December 31, 2019)
1. Sales and income (loss) by reportable segment(Millions of yen)

Reportable segments

Quarterly
consolidated
financialstatements Note2

Facilities
Management

Merchandise
Sales

64,474

123,438

15,538203,451-

203,451

Intersegment sales
and transfers

4,066

751

1,945

6,764

(6,764)-

Total
Segment income (loss)

68,540
10,222

124,190
11,146

17,484796

210,216
22,165(6,764)(6,400)203,451
15,764

Operating revenues
Sales to externalcustomers(Notes)Food andBeverage

Adjustments
Total

Note 1

1. Adjustments to the segment income include ¥6,404 million of administration expenses for administration divisions at parent company’shead office and some of the subsidiaries which are not allocated to each of the reportable segments.
2. Segment income is adjusted with operating income recorded in the Quarterly Consolidated Statements of Income.

2. Information on impairment loss on fixed assets and goodwill, etc., by reportable segment
Not applicable- 12 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019)(Significant Subsequent Events)
Issuance of Domestic Unsecured Straight Corporate BondAt the meeting of the Board of Directors held on February 5, 2020, the comprehensive resolution was maderegarding issuance of domestic unsecured straight corporate bond. The summary is as follows:(1) Total amount to be issued(2) Denomination per bond(3) Issue price(4) Redemption date(5) Cap of interest rate(6) Period of issuance(7) Redemption method(8) Use of proceeds(9) Others

40,000 million yen
It is possible to issue bonds multiple times as long as the total amountstays within this amount.
1 million yen
100 yen per face value 100 yen
5 – 20 years
The yield of Japanese Government Bond with maturity essentiallyequivalent to redemption period + 1% or less
From February 5, 2020 to January 31, 2022
If offering date falls within the above period, payment date could comeafter this period.
Bullet redemption at maturity
Call provision that allows the issuer to repurchase and retire its bonds canbe included.
Capital expenditure, redemption of bonds
Decisions on matters related to items set forth in Article 676 ofCompanies Act and matters necessary for issuance of corporate bond are
to be made by President and COO to the extent mentioned above.

- 13 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2020 (FY2019)

Acquisition of Shares (Conversion into an Associate Accounted for Using Equity Method)
At the meeting of the Board of Directors held on November 8, 2019, the Company resolved to acquirefrom Mitsubishi Corporation (“Mitsubishi”) all of the shares in AGP Corporation (“AGP”) held by Mitsubishi,
AGP’s major shareholder (“Acquisition”). A share transfer agreement was concluded with Mitsubishi on thesame day. On February 4, 2020, the transaction was closed.
As a result of this transaction, our shareholding ratio (ratio of shares held to the total number of issued
shares, excluding treasury stocks; the same hereinafter) in AGP increased to 26.81%, turning AGP into an
associate accounted for using equity method.
(1) Purpose of Acquisition
Since its establishment in 1953, the JAT Group engaged in the construction, management and operation ofdomestic passenger terminals at Haneda Airport, the hub of domestic air transport in Japan, seeking to improvethe convenience, comfort, and functionality of the passenger terminals with its basic management philosophy of
harmony between public good and business success, pursuing its businesses in the spirit of customer-first andabsolute safety. Furthermore, with a view toward enhancing customer satisfaction of airport users, the JATGroup is also involved in a variety of business serving customers, including merchandise sales and food andbeverage.
AGP, meanwhile, has grown and developed as a company responsible for the infrastructure functions ofJapan’s airports since its establishment in 1965, with a common Group corporate philosophy of excelling in its
technological capabilities to contribute to the environmental society. Applying the technologies it has cultivatedto protect airport safety and security and extending them into other areas, AGP is also actively engaged in theretail electricity business, GSE and other sales businesses, and other new businesses.
JAT realized that, given the commonality and connections between JAT and AGP, making AGP an
affiliated company of JAT accounted for using equity method could be expected to lead to significant synergies
in future business development for both companies, and decided to enter into this share transfer transaction.
(2) Name of the seller of Acquisition
Mitsubishi Corporation(3) Details of AGPi) Company nameii) Addressiii) Name and title of representativeiv) Description of businessv) Capitalvi) Date established(4) Dates of Acquisitioni) Date of share transfer agreementii) Date of share transfer (closing)

AGP Corporation
1-7-1 Hanedakuko, Ota-ku, Tokyo
Hiroyuki Hioka, President and CEO
Power business, including the provision of electrical power andheating/cooling to parked aircraft, and maintenance andmanagement business of buildings and equipment andairport-related facilities at and outside the airport
2,038,750,000 yen
December 16, 1965

November 8, 2019
February 4, 2020

(5) Number of shares acquired, acquisition cost, and shareholding ratio after Acquisitioni) Number of shares acquired
3,740,000 sharesii) Acquisition cost
2,255,220,000 yeniii) Shareholding ratio after Acquisition
26.81%- 14 -