May 7, 2021

Financial Report for the Year Ended March 31, 2021 (FY2020) [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. (“the Company”)
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, Senior Managing Director TEL 03-5757-8409
Scheduled date of annual general meeting of shareholders: June 24, 2021
Scheduled date of filing securities report: June 24, 2021
Scheduled date of commencing dividend payment: 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, 2021 (April 1, 2020 to March 31, 2021)(1) Consolidated Business Results(%: Change from the previous period)
Net income/(loss)
Operating revenues
Operating income/(loss)
Ordinary income/(loss)
attributable to owners of
the parent

%
-79.0
-8.7

Millions of yen

FY2020FY201952,572249,756%-56.0

Millions of yen(59,020)
9,892(57,320)
8,705(Note) Comprehensive income/(loss): FY2020(¥62,212 million) (-%)

Net income/(loss)
per share
Yen

Diluted net income
per shareYen(445.92)
61.71

60.20
(¥1,652 million)

FY2019 ¥462 million

FY2020FY2019(Reference) Equity in gains/(losses) of affiliates: FY2020

%
-57.3

Millions of yen

Millions of yen(36,578)
5,012

%
-84.8

FY2019 ¥4,119 million (-88.8%)%

Ordinary income tototal assets%

Operating income tooperating revenues
%

-21.5
3.1

-11.0
1.7

-112.3
4.0

Return on equity(2) Consolidated Financial Position
Total assets

Equity capital tototal assets

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

519,193521,363

195,544
201,89934.3
31.2

1,910.83
2,001.83

As of March 31, 2021
As of March 31, 2020

(Reference) Equity capital: As of March 31, 2021 ¥177,968 million

As of March 31, 2020 ¥162,605 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(4,387)
20,222(25,268)(57,334)

78,22821,644

120,355
71,795

FY2020FY20192. Dividends

Total
dividends(annual)Dividends per share

FY2019FY2020
FY2021(Forecast)

AnnualDividend
payout ratio(consolidated)

Dividends on
net assets(consolidated)

Q1-EndQ2-EndQ3-EndYear-end

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

-

22.00
0.00

-

10.00
0.00

32.00
0.00

2,599
-

51.9
-

1.6
-

-

-

-

-

-

-

(Note) We have decided to postpone the announcement of the outlook for dividend payment for the fiscal year ending March 31, 2022.

3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)(%: Change from the same period of the previous year)

Operatingincome/(loss)

Operating revenues

Net
income/(loss)
per share

Net income/(loss)
attributable to ownersof the parent

Ordinary
income/(loss)

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

37,400103,200

86.4
121.9

(17,300)(17,800)-(17,500)(19,300)-(9,900)(10,300)-(106.30)(110.59)First half
Full-year

Note: As the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) and other accounting treatments will beapplied from the beginning of the fiscal year ending March 31, 2022, the above consolidated financial forecasts are after theapplication of such accounting standards. The rate of change from the previous fiscal year and the same quarter of the previous year is
the rate of change calculated on the assumption that the abovementioned accounting standards are applied to the fiscal year ended
March 31, 2021.
Other Information(1) Significant changes in subsidiaries during the year under review (changes in specified subsidiaries involving changes in scope of
consolidation): No
New: None
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, 2021
93,145,400 shares
As of March 31, 2020
2) Number of treasury stock at the year-end:
As of March 31, 2021
8,595 shares
As of March 31, 2020
3) Average number of shares outstanding during the period:
Year ended March 31, 2021
82,029,456 sharesYear ended March 31, 2020
(Reference) Summary of Non-Consolidated Financial Results
Financial Results for the Year Ended March 31, 2021 (April 1, 2020 to March 31, 2021)(1) Non-Consolidated Business Results
Operating revenues
Millions of yen

FY2020FY201953,178174,269

Operating income/(loss)

%
-69.5
-7.4

Millions of yen(15,946)471

3,248,324 shares
81,228,396 shares(%: Change from the previous period)

Ordinary income/(loss)

%
-93.2

Millions of yen(15,827)
1,250

Net income/(loss) per share
Yen

Diluted net income per shareYen(145.45)
9.34

9.04

FY2020FY201984,476,500 shares

Net income/(loss)

%
-83.4

Millions of yen(11,931)
759

%
-86.1

(2) Non-Consolidated Financial Position
Total assets

As of March 31, 2021
As of March 31, 2020
(Reference) Equity capital:

Net assets

Equity capital tototal assets

Net assets per share

Millions of yen

Millions of yen%

Yen

320,019
282,426

142,979
100,83044.7
35.7

1,535.16
1,241.32

As of March 31, 2021

¥142,979 million

As of March 31, 2020 ¥100,830 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 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 forecasts and precautionary statements regarding the use of the forecasts, please refer to page 9 of the appendix materials “1.
Analysis of Business and Financial Results (4) Forecast for FY 2021 (the fiscal year ending March 31, 2022)”.

Supplementary materials on financial results and details of presentation at earnings announcement
Earnings announcement is planned to be held on May 14, 2021 for financial analysts. 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, 2021 (FY2020)

Contents of the Appendix Materials
1.

ANALYSIS OF BUSINESS AND FINANCIAL RESULTS ..................................................................... - 2 -(1) ANALYSIS OF CONSOLIDATED BUSINESS RESULTS FOR FY 2020 ............................................................. - 2 (2) ANALYSIS OF CONSOLIDATED FINANCIAL POSITION FOR FY 2020........................................................... - 8 (3) ANALYSIS OF CONSOLIDATED CASH FLOWS FOR FY 2020 ....................................................................... - 8 (4) FORECAST FOR FY 2021 (THE FISCAL YEAR ENDING MARCH 31, 2022) ................................................... - 9 (5) BASIC POLICY ON DISTRIBUTION OF PROFITS AND DIVIDEND PAYMENT FOR FY2020/FY2021............... - 9 2.

BASIC APPROACH ON SELECTION OF ACCOUNTING STANDARDS ............................................ - 9 -3.

CONSOLIDATED FINANCIAL STATEMENTS AND MAIN NOTES ................................................. - 10 -(1) CONSOLIDATED BALANCE SHEETS ......................................................................................................... - 10 (2) CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME12 Consolidated Statements of Income ............................................................................................................ - 12 Consolidated Statements of Comprehensive Income ..................................................................................... - 14 (3) CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY .............................................. - 15 (4) CONSOLIDATED STATEMENTS OF CASH FLOWS ...................................................................................... - 17 (5) NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS...................................................................... - 19 (Notes on the Premise of a Going Concern) ................................................................................................ - 19 (Basic Important Conditions to Prepare Consolidated Financial Statements) ................................................. - 19 (Notes on Consolidated Balance Sheets) ..................................................................................................... - 22 (Notes on Consolidated Statements of Income) ............................................................................................ - 23 (Notes on Consolidated Statements of Cash Flows) ..................................................................................... - 24 (Segment Information) .............................................................................................................................. - 25 (Per Share Information) ............................................................................................................................ - 28 (Significant Subsequent Events) ................................................................................................................. - 28 --1-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)

1. Analysis of Business and Financial Results(1) Analysis of Consolidated Business Results for FY 2020
During the fiscal year ended March 31, 2021 (FY 2020), the Japanese economy continued to face a
difficult situation due to the impact of the new corona virus infection (COVID-19). There are signs of recovery,
but some weaknesses have been observed. Looking ahead, it is expected that the recovery trend will continue,
resulting from the effects of various policies and improving overseas economies, while measures are taken toprevent the spread of the infection. However, it is necessary to prudently monitor the increase of downside risk
caused by the spread of the infection in Japan and overseas, as well as the impact of fluctuations in thefinancial and capital markets, among other factors.
Under these economic conditions, domestic tourism demand fell again due to the nationwide suspensionof the “Go To Travel” campaign as a result of the rebound of COVID-19 cases since the end of 2020, and thesubsequent reissuance of the declaration of a state of emergency in January 2021. In the midst of all this, since
January 2021, the number of passengers on domestic flights at Haneda Airport declined by more than 75%
year-on-year, compared to the 54% year-on-year decline during the third quarter. However, the decline was not
as great as during the period of the state of emergency last year, and demand for air travel gradually recovered
toward the end of the fiscal year. On the other hand, the new entry of foreign nationals on international flights
has been completely suspended since January 2021, and strict border control measures against COVID-19 arestill in place. As a result, the number of passengers on international flights at Haneda Airport decreased bymore than 95% year-on-year for the entire year. The same situation also prevailed at Narita Airport and otherinternational hub airports where we have business operations, with each airport experiencing an ongoingsignificant decline in international passenger volume.
Under these circumstances, the Japan Airport Terminal Group (“JAT Group”) is making efforts to ensure
the safety and security of airport users and its employees, based on the “Guidelines for Preventing the Spreadof COVID-19 in the Aviation Field” (jointly prepared by the Scheduled Airlines Association and the All Japan
Airport Terminal Association). To date, we have taken measures including the improvement of the ventilation
capacity of the terminals, the installation of hand sanitizer and plastic sheets to prevent droplet infection
throughout the terminal buildings, and the introduction of thermographic devices for measuring bodytemperature at security checkpoints. Moreover, we are providing part of Terminal 3 as a PCR testing area
amidst the government’s effort to expand the PCR testing system. We have also established a system thatenables PCR testing for overseas travelers and issues a certificate of negative test results in as little as twohours at the Toho University Haneda Airport Terminal 3 Clinic. Furthermore, the Kinoshita Group opened a
PCR testing center in Terminals 1 and 2 in April 2021, offering rapid tests that provide results in about 15
minutes, and taking various other measures to support safe and secure travel for airport users. These measures
at Haneda Airport have been certified under the “Airport Health Accreditation (AHA) Programme” of the
Airports Council International (ACI).
Meanwhile, in order to recover sales amidst the continuing decline in air travel demand, we arepromoting measures to increase sales, mainly at stores for domestic flights, and are working to enhance thedevelopment of products exclusive to Haneda Airport, such as the launch of new original brands including“HANEDA CHOCOLATE JOURNEY”. Furthermore, in the e-commerce business, while expanding the rangeof products available on existing shopping sites, we are also promoting initiatives, such as the sale oflimited-edition in-flight meals produced by our group companies. In the midst of a significant decrease in thenumber of passengers, we have been implementing rent reduction and exemption measures since April 2020,
as a support measure for airlines and tenants, while reviewing the details of the reduction and exemption inlight of passenger trends.
We are also implementing extensive cost-reduction measures to minimize the impact of the decline inrevenues. In addition to cutting down non-urgent costs, we temporarily closed parts of the terminal in light ofpassenger trends, reduced facility maintenance and management costs by reviewing operating methods, andreduced outsourcing costs by bringing some tasks in-house. With respect to personnel costs, we not only
partially reduced executive compensation, but also cut down employee bonuses and temporary salary
payments. We will continue to work on maintaining the effects of cost reductions and to review our cost
structure in order to build a more efficient profit-generating structure by curbing the increasing costs
associated with the recovery of passenger volume in the future.
From the financial perspective, we have worked to secure liquidity on hand, raised ¥5.0 billion in
long-term loans by June 2020, and secured a short-term borrowing facility of ¥20.0 billion, in addition to an
existing commitment line of ¥9.0 billion. Furthermore, we raised a total of ¥56.7 billion through a public
offering of new shares and other means in March 2021 in order to secure funds for capital expenditures
necessary to improve the functions of Haneda Airport in anticipation of the end of the COVID-19 pandemic,
despite the prolonged impact of the decline in revenue. As a result, our financial standing has recovered to thelevel it was before the spread of COVID-19, and we have established a solid financial foundation that allows
us to secure investment capacity.
The JAT Group has aspired to best satisfy the needs of all stakeholders. To create business and revenue-2-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)

generation opportunities and achieve sustainable growth, we have developed a medium-term business plan
(FY2016 – FY2020) and taken measures based on our long-term vision “To Be a World Best Airport”.
However, the impact of COVID-19 has significantly changed the business environment upon which themedium-term business plan was based. Furthermore, society as a whole is shifting to the “new normal”, so the
JAT Group is fundamentally reviewing the way it manages its airport terminals and business operations withideas that are not bound by the conventional framework.
During the current fiscal year, for international flights at Haneda Airport, we implemented measures
including the promotion of “FAST TRAVEL” which enables stress-free and comfortable boarding procedures
and the introduction of “One ID” which uses face recognition technology. Based on these efforts, “One ID”
was renamed “Face Express” in April 2021, and a demonstration experiment was conducted. In an effort toimprove passenger convenience and as a part of the measure to prevent COVID-19 infections by
non-face-to-face and contactless services and facilities, we are aiming to start its full-scale operation in July
2021, when the Tokyo Olympic and Paralympic Games will be held. Similarly, in anticipation of the Gamesand the subsequent increase in demand, we are investing approximately ¥1.0 billion in the construction of a
dedicated business jet facility in Terminal 3, which is scheduled to commence service in July 2021. In addition,
as for the use of robotic technology in the “Haneda Robotics Lab”, which has been underway since 2016, a
self-driving wheelchair, a remote guidance robot, and a sanitization work robot have been introduced. The“C-FACE”, a smart multilingual translation mask that leverages robotic translation technology has been on
sale since December 2020. In recognition of these efforts, we received a special award from the Cabinet Officein the “Cool Japan Matching Award 2021”. We will continue to actively use digital technology to promote
flexible and efficient terminal operations and work on a sales agency business to expand these world-classtechnologies and products that we have jointly developed at Haneda Airport to other airports. Furthermore, atthe end of March 2021, we released the official Haneda Airport app. In addition to providing airport
information and store special offers, the app also allows online shopping. We will continue to improve
convenience by updating it with additional functions.
With respect to ESG (Environmental, Social and Corporate Governance), in addition to our existing
efforts to reduce CO2 emissions toward a decarbonized society, including the use of LED lighting, we
completed the construction of a new recycling building in December 2020 as a countermeasure to theincreasing waste volume at Haneda Airport. In an effort to improve passenger convenience and prepare forlarge-scale disasters, we have also been installing recharging facilities with built-in storage batteries in thearrival lobbies and gate lounges of domestic terminals since February 2021. Moreover, we are taking various
measures, including the following, to enhance our universal design service facilities. For domestic flights, we
set up a “Calm Down, Cool Down Space” in the security area after passengers pass through the baggage
checkpoint, which people with disabilities can use when they need to calm down. For international flights, werevised the “Communication Support Board” that allows passengers to communicate by pointing, andpublished a “Floor Map by Hand (Braille Map)” for the departure area.
As a result of the above, with respect to consolidated financial results for FY2020 (April 1, 2020 – March
31, 2021), operating revenues were ¥52,572 million (down 79.0% year-on-year) due to continuous decline inrevenue from facility user charges, merchandise sales, and food and beverage sales and others because of thesubstantial decrease in passenger volume for domestic and international flights. As a result of the fall in revenue,
operating loss was ¥59,020 million (compared to operating income of ¥9,892 million during the previous fiscal
year), coupled with increase in depreciation expense of Haneda’s international facilities that commenced
operation last fiscal year despite taking thorough cost reduction measures. Ordinary loss was ¥57,320 million(compared to ordinary income of ¥8,705 million during the previous fiscal year), and net loss attributable toowners of the parent was ¥36,578 million (compared to net income attributable to owners of the parent of ¥5,012
million during the previous fiscal year).
(Millions of yen)

Operating Results

FY2019(from April 1, 2019 toMarch 31, 2020)

Operating revenues[Facilities Management][Merchandise Sales][Food and Beverage]
Operating income / (loss)
Ordinary income / (loss)
Net income/(loss) attributable toowners of the parent-3-

FY2020(from April 1, 2020 toMarch 31, 2021)

Year-on-Year(%)

249,756
82,942
147,893
18,9209,892
8,705

52,57235,917
13,6572,998(59,020)(57,320)

-79.0
-56.7
-90.8
-84.2
-

5,012

(36,578)-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)

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 the sixth consecutive year.
Moreover, in May 2020, we were awarded second place globally for the second consecutive year in the World’s
Best Airports, which comprehensively evaluated various aspects of international airports in 2020. Furthermore,
we were awarded first place in the World's Cleanest Airports (for the fifth consecutive year), World's Best
Domestic Airports (for the eighth consecutive year), and World's Best PRM / Accessible Facilities (for thesecond consecutive year).
Although the airline industry continues to face a difficult situation, domestic air travel demand has beensteadily recovering since before the full lifting of the declaration of a state of emergency in March 2021. On theother hand, for international flights, as part of the efforts by the Japanese government to strengthen bordercontrol measures against COVID-19, the number of people allowed to enter the country per day has been
restricted, and airlines have been asked to limit the volume of arriving passengers, so a recovery in air travel
demand is still expected to take some time. In light of these trends, the JAT Group will continue to ensure thesafety and security of passengers using Haneda Airport and will operate the passenger terminal to appropriately
respond to demand. In the long-term, we expect a steady increase in demand for air travel, and we willcontinue to work towards increasing the value of Haneda Airport by further improving the convenience,
comfort, and functionality of the terminal buildings as the sky gateway to Japan and the Tokyo metropolitan
area.
The following is a breakdown of earnings / (loss) by segment. Note that the figures for operating income /(loss) are equivalent to those for segment income / (loss).

-4-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)

Overview by Segment[Facilities Management](Millions of yen)

Operating Results

FY2019(from April 1, 2019 toMarch 31, 2020)

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

82,942
18,25941,01923,662
5,697
88,6406,932

FY2020(from April 1, 2020 toMarch 31, 2021)

35,917
17,712
7,644
10,5601,614
37,532(36,283)

Year-on-Year
(%)

-56.7
-3.0
-81.4
-55.4
-71.7
-57.7
-

Rent revenue decreased from the previous year primarily due to continued rent reductions and exemptions
offered to tenants and others which have been implemented since April 2020, despite the increase in revenue
due to the rental of space for PCR testing at Terminal 3.
Revenue from facility user charges fell significantly below the previous year due to a drop in user charges.
This is due to a significant decrease in the number of passengers on domestic flights for the year as a whole
despite a recovery trend since March 2021, coupled with the continued decline of passenger volume forinternational flights.
Other revenues fell significantly below the previous year due to the decline in parking revenue, paidlounge sales, hotel revenue and advertising revenue as a result of the slump in passenger volume.
As a result, operating revenues from facilities management operations decreased to ¥37,532 million(down 57.7% year-on-year). Operating loss for the segment was ¥36,283 million (compared to operating
income of ¥6,932 million during the previous fiscal year) primarily due to the drop in revenue and the increasein depreciation expense after the opening of Haneda Airport Terminal 2 international facilities and expansion
part of Terminal 3 in the previous fiscal year.

-5-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)[Merchandise Sales](Millions of yen)

Operating Results

FY2019(from April 1, 2019 toMarch 31, 2020)

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

FY2020(from April 1, 2020 toMarch 31, 2021)

Year-on-Year(%)

147,893
33,14813,657
8,559

-90.8
-74.2

84,420

2,751

-96.7

30,323
1,378
149,272
10,823

2,345
779
14,436(11,322)

-92.3
-43.5
-90.3
-

Sales at domestic terminal stores fell significantly from the previous year. In the third quarter,
merchandise sales were also on a recovery trend driven by the continued recovery of passengers, but in the
fourth quarter, sales dropped again along with passenger trends. Changes in consumer sentiment during the
COVID-19 pandemic also contributed to this result.
Sales at international terminal stores significantly decreased from the previous year primarily due to thesubstantial decrease in international passenger volume and continued temporary closures of many of ourdirectly-managed duty-free stores. At our directly-managed stores at Haneda Airport Terminal 3, Narita
Airport and others, we have established an operational structure aligned with air traffic throughout the year
by resuming operations mainly at comprehensive duty-free shops, and by also operating brand boutiques onlimited days of the week. In addition, airport-style in-city duty-free shop “Japan Duty Free Ginza” hascontinued to operate since June 2020, but each store continues to face difficulty with respect to merchandise
sales.
Other revenues significantly decreased from the previous year because of the continued decrease in thewholesaling business at local airports due to the drop in passenger volume.
As a result, operating revenues from merchandise sales operations dropped to ¥14,436 million (down
90.3% year-on-year). Operating loss was ¥11,322 million (compared to operating income of ¥10,823 million
during the previous fiscal year) due to a loss on the disposal of some duty-free items expected to occur in thenext fiscal year and beyond which were included as a valuation loss in the current fiscal year, reflecting theuncertain outlook for international passenger volume, in addition to the decrease in revenue.

-6-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)[Food and Beverage](Millions of yen)

Operating Results

FY2019(from April 1, 2019 toMarch 31, 2020)

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 / (loss)

FY2020(from April 1, 2020 toMarch 31, 2021)

Year-on-Year(%)

18,920

2,998

-84.2

11,514

2,363

-79.5

6,543
863
2,641
21,561
451

365
269
1,093
4,091
(4,150)

-94.4
-68.8
-58.6
-81.0
-

Sales from food and beverage operations significantly fell from the previous year at both domestic andinternational terminals due to the temporary closure and shortened operating hours in line with passenger
trends, in addition to the slump in passenger volume.
Sales from in-flight meals significantly fell from the previous year due to a continued decline in passenger
volume for flights to Narita and Haneda by many of the foreign carriers, our clients in this business.
As a result, operating revenues from food and beverage operations dropped to ¥4,091 million (down
81.0% year-on-year) and operating loss for the segment was ¥4,150 million (compared to operating income of¥451 million during the previous fiscal year).

-7-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)(2) Analysis of Consolidated Financial Position for FY 2020
[Assets]
Current assets increased due to a total of ¥56,700 million funds raised primarily through a public offeringof new shares in March this year, despite the decrease in accounts receivable because of the decline inoperating revenues. Fixed assets decreased primarily due to the depreciation of buildings and structures. As aresult, total assets decreased by ¥2,170 million from the previous fiscal year end to ¥519,193 million.
[Liabilities]
Liabilities increased due to long-term loans of approximately ¥30.0 billion that the Company raised
despite the payment of the construction cost of Haneda Airport international facilities which the construction
was completed last fiscal year. As a result, total liabilities increased by ¥4,184 million from the previous fiscal
year end to ¥323,648 million.
[Net assets]
Common stocks and capital surplus increased primarily due to the public offering of new shares, while
retained earnings and non-controlling interests decreased due to dividend distribution and net loss for the year.
As a result, total net assets decreased by ¥6,355 million from the previous fiscal year end to ¥195,544 million.
As a result, the equity ratio was 34.3% (compared to 31.2% at the previous fiscal year end).
(3) Analysis of Consolidated Cash Flows for FY 2020
Cash and cash equivalents (hereinafter referred to as “cash”) at the current fiscal year end increased by¥48,559 million compared to the previous fiscal year end to ¥120,355 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]
Cash flows from operating activities decreased by ¥24,609 million from the previous fiscal year (¥20,222
million cash inflow for the previous fiscal year), resulting in a cash outflow of ¥4,387 million.
This was primarily due to a decrease in income before income taxes and minority interests.
[Cash flows from investing activities]
With respect to cash flows from investing activities, cash outflow decreased by ¥32,066 million from theprevious fiscal year (down 55.9% year-on-year), resulting in a cash outflow of ¥25,268 million.
This was primarily due to expenditures for the acquisition of tangible fixed assets.
[Cash flows from financing activities]
With respect to cash flows from financing activities, cash inflow increased by ¥56,584 million from theprevious fiscal year (up 261.4% year-on-year), resulting in a cash inflow of ¥78,228 million. This was primarily
because of the proceeds from issuance of shares.

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Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)(4) Forecast for FY 2021 (the fiscal year ending March 31, 2022)
While the airline industry continues to face a difficult situation due to the impact of COVID-19, it isexpected that demand for air travel will recover as vaccination progresses in Japan and other countries aroundthe world. However, the situation continues to require close attention to the trends of infection in Japan andoverseas as stricter measures to prevent the spread of COVID-19 were applied in Tokyo, Osaka, and otherprefectures in April 2021, and furthermore a subsequent state of emergency was declared.
At Haneda Airport, while domestic flights will see a gradual recovery in demand, demand forinternational flights is expected to take some time to recover due to restrictions on the number of passengers
entering the country per day and airlines limiting the number of passengers arriving on international flights.
Under these circumstances, we expect our domestic flight business to return to profitability, while theinternational flight business will continue to face a difficult situation.
In this environment, we will strive to improve our bottom line by implementing proactive measures toincrease sales, such as expanding products exclusive to Haneda Airport and enhancing our e-commercebusiness, and by continuing to reduce costs. We will also support safe and secure travel for airport users byimplementing thorough infection prevention measures to help ensure the smooth hosting of the Tokyo Olympic
and Paralympic Games. Furthermore, in terms of capital expenditures in anticipation of the end of the
COVID-19 pandemic, we will work on the construction of dedicated facilities for business jets in Terminal 3,
the new North Satellite in Terminal 1, and the connection between the main building and the satellite in
Terminal 2, with the aim of further improving the functions of Haneda Airport.
The expected earnings by segment as of today is as follows.
For the Facility Management business, operating revenue is expected to increase from the previous year
primarily due to an increase in overall rent income, despite the planned continuation of rent reduction andexemption for tenants, and an increase in facility user charges primarily resulting from a recovery in thenumber of passengers on domestic and international flights at Haneda Airport.
For the Merchandise Sales business and the Food and Beverage business, operating revenue is expected
to increase from the previous year, mainly due to an increase in merchandise sales and food and beverage sales
resulting from a recovery in the number of passengers on domestic flights.
As a result, for the next fiscal year, we forecast operating revenue of ¥103,200 million (up 121.9%
year-on-year). We expect profitability to recover to a certain level, but not to reach the point at which it will
fully cover fixed costs, hence forecast operating loss of ¥17,800 million (compared to operating loss of ¥59,020
million during the previous fiscal year), ordinary loss of ¥19,300 million (compared to ordinary loss of ¥57,320
million during the previous fiscal year), and net loss attributable to owners of the parent of ¥10,300 million(compared to net loss attributable to owners of the parent of ¥36,578 million during the previous fiscal year).
(5) Basic Policy on Distribution of Profits and Dividend Payment for FY2020/FY2021
We consider the return of profits to our shareholders to be one of our most important management
priorities. Our basic policy is to work on management with a more proactive stance, strive to improve ourbusiness performance, secure internal reserves in consideration of large-scale investments such as the renewalof passenger terminal building facilities in line with the functional expansion of Haneda Airport, and at thesame time, maintain stable dividend payments.
However, our business performance has been severely impacted by COVID-19 and the outlook remains
extremely uncertain.
We decided to postpone the announcement of the year-end dividend for the current fiscal year at the timeof the announcement of the financial results for the fiscal year ended March 31, 2020. After a comprehensive
review based on the current business environment, performance trends, and the dividend distribution policy
mentioned above, as we believe that securing liquidity on hand is of utmost importance, we have decided not
to distribute a dividend for the current fiscal year, although we strongly regret doing so.
We have decided to postpone the announcement of our dividend forecast for the next fiscal year and will
announce it at some point in the future, after taking into consideration the future business environment and its
impact on our business.

2.

Basic Approach on Selection of Accounting Standards
To secure comparability between companies and between fiscal years, the JAT Group prepares its
consolidated financial statements in accordance with the Ordinance on Terminology, Forms and Preparation
Methods of Consolidated Financial Statements (Finance Ministry Ordinance No. 28 of 1976), excluding Chapter
7 and Chapter 8.
The JAT Group will appropriately consider the possibility of adoption of international accounting standards
taking into consideration of conditions in Japan and overseas.
-9-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)

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
Deferred tax assets
Net defined benefit assets
Other investments
Total investments and other assets
Total fixed assets
TOTAL ASSETS- 10 -FY2019(As of March 31, 2020)

FY2020(As of March 31, 2021)

71,958
8,924
13,440146
19,797(18)
114,248

120,355
5,272
9,658
249
7,944
(73)
143,407552,854(277,692)
275,162
37,743(15,266)
22,476
12,881
3,622
(965)
2,657
6,258
67,111(50,994)
16,116
335,551557,609(301,148)
256,460
37,073(17,939)
19,133
12,874
3,530(1,111)
2,418
1,626
67,643(54,833)
12,810305,324

35,205
3,614
38,82033,361
3,756
37,11720,082
8,748
387
3,523
32,742
407,114521,363

16,43012,414945
3,553
33,343375,785
519,193Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)(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
Allowance for loss on store closing
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- 11 -FY2019(As of March 31, 2020)

FY2020(As of March 31, 2021)

3,261
13,646

1,274
16,612－

15,009

8,736
1,517
1,635
186
－
35,34364,327

14,523
573
1,176
－
575
9,347
59,09350,98515,020161,011
2,402
13,357
55
4,141
486
7,675
255,136
319,464

54,983－
175,842
2,082
16,740
71
4,486
613
9,735
264,555
323,648

17,48921,337
123,451(3,248)159,029

38,12654,16086,060(8)
178,338

3,637

1,855

609
37
(708)
3,575
39,294
201,899
521,363(1,836)
19
(408)
(369)
17,575
195,544
519,193Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)

FY2019(from April 1, 2019
to March 31, 2020)
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 (loss)
Non-operating income
Interest income
Dividends income
Equity in gains of affiliates
Contributions in aid of construction
Subsidies for employment adjustment
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Share issuance costs
Fee and commission expenses
Loss on retirement of fixed assets
Equity in losses of affiliates
Provision for loss on store closings
Miscellaneous expenses
Total non-operating expenses
Ordinary income (loss)- 12 -FY2020(from April 1, 2020
to March 31, 2021)

18,25941,01923,801
147,563
19,111
249,756

17,712
7,645
10,63813,543
3,032
52,572104,288
10,336
114,625
135,130

11,983
3,114
15,09737,475

12,816
1,628
186
904
16,297
27,57627,80738,021
125,238
9,892

11,017925－
977
11,73012,02734,31025,50696,495(59,020)

25
364
462
353
－
1,281
2,488

2,433
227
－
180
3,331
1,435
7,607

2,901
－
459
240
－
－
74
3,675
8,705

2,289
308
117
839
1,652
575
124
5,908
(57,320)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)(Millions of yen)

FY2019(from April 1, 2019
to March 31, 2020)
Extraordinary gains
Gains on sales of fixed assets
Government subsidy
Gains on sale of investment securities
Total extraordinary gains
Extraordinary loss
Impairment loss
Loss on retirement of fixed assets
Loss on reduction entry of fixed assets
Other extraordinary loss
Total extraordinary loss
Income (loss) before income taxes and non-controllinginterests
Income taxes – current
Income taxes for prior periods
Income taxes – deferred
Total income taxes
Net income (loss) before non-controlling interests
Net income (loss) attributable to non-controlling interests
Net income (loss) attributable to owners of the parent- 13 -FY2020(from April 1, 2020
to March 31, 2021)

271
99
5
376

11
5,480
3,504
8,995

－
429
44
－
473

1,097
－
5,388
8
6,494

8,609

(54,819)

3,966
494(1,840)
2,620
5,988
975
5,012

108
166
865
1,140
(55,960)(19,381)(36,578)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income (loss) 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- 14 -FY2019(from April 1, 2019
to March 31, 2020)
5,988

FY2020(from April 1, 2020
to March 31, 2021)(55,960)(1,893)
808
(10)
(738)

(1,780)(4,795)
(18)
317

(35)

24

(1,869)4,119(6,252)(62,212)

2,781(40,523)

1,338(21,688)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)(3) Consolidated Statements of Changes in Shareholders’ Equity
FY2019 (from April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholders’ equity

Balance at the beginning of current period

Common stock

Capital surplus

17,48921,337Retainedearnings

Treasury stock

122,012(3,246)

Total
shareholders’equity157,592

Changes during current period－

Issuance of new shares
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock(3,574)(3,574)

5,012

5,012
(1)

(1)
－

Disposal of treasury stock
Changes of items other than shareholders’equity during current period (net)－Total changes during current period

－

－

1,438

(1)

1,436

Balance at the end of current period

17,48921,337

123,451(3,248)159,029

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Deferred gains
or losses onhedges

5,506

197

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income47
55
5,807(1,869)

412

(10)

(764)

(2,231)

Total changes during current period(1,869)

412

(10)

(764)

(2,231)

Balance at the end of current period

3,637

609

37

(708)

3,575

Balance at the beginning of current period

Foreigncurrencytranslation
adjustment

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

Balance at the beginning of current period

Non-controllinginterests
37,990Total net assets
201,390

Changes during current period－

Issuance of new shares
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock(3,574)

Disposal of treasury stock
Changes of items other than shareholders’equity during current period (net)

－

5,012
(1)

1,303

(927)

Total changes during current period

1,303

509

Balance at the end of current period

39,294

201,899- 15 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)

FY2020 (from April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders’ equity

Balance at the beginning of current period

Common stock

Capital surplus

17,48921,337

20,637

20,637Retainedearnings

Treasury stock

123,451(3,248)

Total
shareholders’equity159,029

Changes during current period
Issuance of new shares
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Disposal of treasury stock
Changes of items other than shareholders’equity during current period (net)41,274
(812)

(812)

(36,578)(36,578)

12,184

(1)

(1)

3,241

15,426-

Total changes during current period

20,63732,822(37,390)

3,239

19,308

Balance at the end of current period

38,12654,16086,060(8)

178,338

Accumulated other comprehensive income
Deferred gains
or losses onhedges

3,637

609(1,782)(2,445)(18)300(3,945)

Total changes during current period(1,782)(2,445)(18)300(3,945)

Balance at the end of current period

1,855(1,836)

19

(408)

(369)

Balance at the beginning of current period

Foreigncurrencytranslation
adjustment

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income
37
(708)
3,575

Valuationdifference on
available-for-salesecurities

Changes during current period
Issuance of new shares
Dividend from retained earnings
Net income (loss) attributable to ownersof the parent
Purchase of treasury stock
Disposal of treasury stock
Changes of items other than shareholders’equity during current period (net)

Balance at the beginning of current period

Non-controllinginterests
39,294

Total net assets
201,899

Changes during current period
Issuance of new shares

41,274

Dividend from retained earnings
Net income (loss) attributable to ownersof the parent
Purchase of treasury stock
Disposal of treasury stock
Changes of items other than shareholders’equity during current period (net)(812)(36,578)(1)
15,426(21,718)(25,663)

Total changes during current period(21,718)(6,355)

Balance at the end of current period

17,575

195,544- 16 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)(4) Consolidated Statements of Cash Flows(Millions of yen)

FY2019(from April 1, 2019
to March 31, 2020)
Cash flows from operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
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
Share issuance costs
Interest and dividends income
Subsidies for employment adjustment
Interest expenses
Loss on retirement of tangible fixed assets
Increase (decrease) in allowance for loss on store
closings
Equity in losses (earnings) of affiliates
Loss (gain) on sales of tangible fixed assets
Government subsidy
Loss (gain) on sales of investment securities
Loss on reduction of fixed assets
Impairment loss
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
Subsidies received
Income and other taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of investment securities
Purchase of tangible fixed assets
Proceeds from sales of investment securities
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- 17 -FY2020(from April 1, 2020
to March 31, 2021)

8,609
27,901
(89)
(82)
83
(63)
－
(390)
－
2,901
668

(54,819)
34,403
(459)
(186)
329
(47)
308
(2,660)(3,331)
2,289
785

－

575

(462)
(271)
(99)
－
44
－
9,035
(2,477)(12,080)(6,513)
3,394
181
209
30,497387(3,283)－(7,378)20,222

1,652(11)(5,480)(3,504)
5,388
1,097
3,651
3,678
11,573(1,987)
4,093
(62)
21
(2,702)258(3,209)3,331(2,065)(4,387)(5,536)(49,895)
0193(1,781)
(1)
(0)
99
(482)
67
2
(57,334)(330)(32,013)3,510
252(1,708)
(1)
(100)
5,480
(649)
292
1
(25,268)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)(Millions of yen)

FY2019(from April 1, 2019
to March 31, 2020)
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
Proceeds from issuance of corporate bond
Redemption of convertible bond
Repayments of lease obligations
Proceeds from sale and leaseback transactions
Proceeds from sale of treasury stock
Proceeds from issuance of shares
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- 18 -FY2020(from April 1, 2020
to March 31, 2021)－
11,850(11,060)
39,789(15,000)
(324)
－
－
－
(3,574)(34)(1)
21,644400
31,402(13,799)
4,105
－
(503)
932
15,426
41,135
(812)
(29)
(29)
78,228(9)(13)(15,477)
87,273
71,79548,55971,795
120,355

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)(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: 19 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
Haneda Future Research Institute Inc.
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.
Japan Airport Terminal Trading (Chengdu) Co., Ltd.
LANI KE AKUA PACIFIC, INC.
Sakura Co., Ltd.
Hamashin Co., Ltd.
Kaikan Development Co., Ltd.
CTT Co., Ltd., which used to be one of the consolidated subsidiaries, is now excluded from the scope of
consolidation, since it was dissolved on April 1, 2020 due to an absorption-type merger with Cosmo EnterpriseCo., Ltd., being the surviving entity.
2) Number of Non-consolidated subsidiaries: 3 companies
Names of Non-consolidated subsidiaries
Tsukizi Hamashin Co., Ltd.
Felix International LLC.
JAT DESIGN INTERNATIONAL INC.
The three non-consolidated subsidiaries are excluded from the scope of consolidation since they are small insize, and their total assets, operating revenues, net income/loss, and retained earnings do not have a significant
impact on the consolidated financial statements.
2. Application of equity method
1) Number of affiliated companies that are accounted for using the equity method: 3 companies
Names of affiliated companies that are accounted for using the equity method
Airport Transport Service Co., Ltd.
Japan Airport Delica Inc.
AGP Corporation
2) The non-consolidated subsidiaries and Seikousha Inc. and eight 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.
In preparing the consolidated financial statements, the financial statements as of the abovementioned closing date
are used and necessary adjustments arising from important transactions during the period between the closing
date and the consolidated closing date are made.
- 19 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)

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.
(E) Allowance for loss on store closing
To provide for losses resulting from store closing, the estimated amount of losses is recorded as allowance.
4) Accounting method for employees' retirement benefits(A) Allocation method of projected retirement benefits to each period
In calculating the retirement benefit obligation, 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 thestraight-line method over a certain number of years within the average remaining service years (5-10 years).
- 20 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)(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
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 fluctuation in values whose maturity will come within three months from the date ofacquisition.
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 the acquisition cost (¥4,517 million foraccumulated amount as of March 31, 2021) and recorded as fixed asset.
9) Other important matters regarding preparing consolidated financial statements
Consumption Taxes
Consumption taxes are excluded from transaction amounts.

- 21 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)(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)

FY2019(As of March 31, 2020)
45,99735
256,065
11,276
53
－
3,661
1,000
318,089

Cash and deposits
Accounts receivable
Buildings and structures
Machinery, equipment and vehicles
Land
SoftwareInvestment Securities (Note)
Other investments
Total

FY2020(As of March 31, 2021)
35,141
19
122,313
11,722
53
517
3,841
1,000
174,608(Note) Pledged as collateral for borrowings by affiliated companies

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

FY2019(As of March 31, 2020)
850
94,057
94,907

Short-term loans payable
Long-term loans payable
Total

FY2020(As of March 31, 2021)
200
109,404
109,604

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

FY2019(As of March 31, 2020)
7,023

Investment securities (shares)

FY2020(As of March 31, 2021)
5,809

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

FY2019(As of March 31, 2020)
Japan Airport Delica Inc.
Airport Transport Service Co., Ltd.
Total

225
－
225

FY2020(As of March 31, 2021)
Japan Airport Delica Inc.
Airport Transport Service Co., Ltd.

225
1,546
1,772

(2) Commitment to guarantee(Millions of yen)

FY2019(As of March 31, 2020)
Haneda Future Tokutei Mokuteki Kaisha

666

FY2020(As of March 31, 2021)
Haneda Future Tokutei Mokuteki Kaisha- 22 -

666

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)

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)

FY2019(As of March 31, 2020)
132
－
132

Buildings and structures
Machinery, equipment and vehicles
Total

FY2020(As of March 31, 2021)
168
5,324
5,492

(Notes on Consolidated Statements of Income)1. The amount of inventory at the fiscal year end is the amount that reflects writing-down of the book value dueto the decline in profitability, and the following inventory valuation loss is included in the cost of goods sold.
(Millions of yen)

FY2019(from April 1, 2019 toMarch 31, 2020)
118

FY2020(from April 1, 2020 toMarch 31, 2021)
1,570

FY2019(from April 1, 2019 toMarch 31, 2020)
142
128
－
271

FY2020(from April 1, 2020 toMarch 31, 2021)
－
－
11
11

2. Gains on sale of fixed assets(Millions of yen)Land
Buildings
Furniture and fixtures
Total

3. Impairment loss
The JAT Group recognized impairment loss on the assets as follows:
FY2019 (from April 1, 2019 to March 31, 2020)
There is nothing to report.
FY2020 (from April 1, 2020 to March 31, 2021)
Location

Use

Type
Impairment loss
Buildings and structures, others,
Chuo-ku, TokyoStore (Merchandise Sales)
568 million yen
intangible fixed assets
Buildings and structures, others,
Narita-shi, Chiba
Store (Merchandise Sales)
529 million yen
intangible fixed assets
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 ofcertain business assets at the Company and its consolidated subsidiaries is not recoverable in the future. The entire
carrying amount of those assets was recognized as impairment loss of ¥1,097 million in extraordinary loss. The loss
consists of ¥631 million for buildings and structures, ¥424 million for others, and ¥42 million for intangible fixed
assets.
Recoverable values of those assets were measured as zero, which were based on their values in use.

- 23 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)

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

FY2019(from April 1, 2019
to March 31, 2020)
423
4
0
429

Buildings and structures
Furniture and fixtures
SoftwareTotal

FY2020(from April 1, 2020
to March 31, 2021)－－－－(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)

FY2019(from April 1, 2019
to March 31, 2020)
71,958(162)
71,795

Cash and deposits
Time deposits with a maturity greater than 3 months
Cash and cash equivalents- 24 -FY2020(from April 1, 2020
to March 31, 2021)
120,355－
120,355

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)(Segment Information)
Segment Information
1. Overview of reportable segments
The reportable segments of the JAT Group are units for which separate financial information is available andwhose 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
FY2019 (from April 1, 2019 to March 31, 2020)(Millions of yen)

Reportable segments

Consolidated
financialstatements(Notes 2)

Facilities
Management

Merchandise
Sales

82,942

147,893

18,920249,756－

249,756

5,697

1,378

2,641

9,717

(9,717)－88,6406,932
360,509149,272
10,82353,734

21,561451
17,634259,473
18,207
431,879(9,717)(8,315)89,484

249,756
9,892
521,363

Depreciation andamortization

24,4452,335

577

27,357543

27,901

Increase in tangible fixed
assets and intangible fixed
assets55,358

11,941

1,089

68,3892,392

70,782

Operating 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 ¥8,321 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 ¥144,458 million of corporate assets which are not allocated to each of thereportable segments, which includes excess funds managed by the 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 ¥549 million of depreciation with respect to the parent company’s
administration and other divisions at head office and certain subsidiaries which are not allocated to each of the reportablesegments.
(4) Adjustments to increase in tangible fixed assets and intangible fixed assets (¥2,392 million) are primarily due toacquisition of a company dormitory for employees of parent company’s head office.

- 25 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)

2. Segment income is adjusted with operating income recorded in the Consolidated Statements of Income.

FY2020 (from April 1, 2020 to March 31, 2021)(Millions of yen)

Reportable segments

Consolidated
financialstatements(Notes 2)

Facilities
Management

Merchandise
Sales

35,917

13,657

2,998

52,572－

52,572

1,614

779

1,093

3,487

(3,487)－37,532(36,283)
333,699

14,436(11,322)30,786

4,091(4,150)12,22856,060(51,756)
376,713(3,487)(7,263)
142,479

52,572(59,020)
519,193

Depreciation andamortization

31,5001,758

544

33,803600

34,403

Increase in tangible fixed
assets and intangible fixed
assets

7,320

1,743

100

9,165

116

9,282

Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income/(loss)
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 ¥7,269 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 ¥194,629 million of corporate assets which are not allocated to each of thereportable segments, which includes excess funds managed by the 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 ¥605 million of depreciation with respect to the parent company’s
administration and other divisions at head office and certain subsidiaries which are not allocated to each of the reportablesegments.
(4) Adjustments to increase in tangible fixed assets and intangible fixed assets (¥116 million) are primarily due to acquisitionof welfare facilities of parent company’s head office.
2. Segment income is adjusted with operating income recorded in the Consolidated Statements of Income.

Related Information
FY2019 (from April 1, 2019 to March 31, 2020)
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
FY2020 (from April 1, 2020 to March 31, 2021)
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.
- 26 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)

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
FY2019 (from April 1, 2019 to March 31, 2020)
Not applicable
FY2020 (from April 1, 2020 to March 31, 2021)(Millions of yen)

Impairment Loss

Facilities
Management－

Merchandise
Sales
1,097

Corporation /Elimination

Food andBeverage－－

Information on amortized amount and unamortized balance of goodwill by reportable segment
FY2019 (from April 1, 2019 to March 31, 2020)
Not applicable
FY2020 (from April 1, 2020 to March 31, 2021)
Not applicable
Information on gain on negative goodwill by reportable segment
FY2019 (from April 1, 2019 to March 31, 2020)
Not applicable
FY2020 (from April 1, 2020 to March 31, 2021)
Not applicable- 27 -

Total
1,097

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2021 (FY2020)(Per Share Information)(Yen)

FY2019(from April 1, 2019
to March 31, 2020)
2,001.83
61.71
60.20

Net assets per share
Net income / (loss) per share
Diluted net income per share
Notes:FY2020(from April 1, 2020
to March 31, 2021)
1,910.83(445.92)-

1. Although potential shares exist, diluted net income per share for the fiscal year ended March 31, 2021 is not shown due to
net loss per share.
2. Net income / (loss) per share and diluted net income per share are calculated based on the following:(Millions of yen, except for number of shares)

FY2019(from April 1, 2019
to March 31, 2020)
Net income / (loss) per share
Net income / (loss) attributable to owners of theparentAmount not attributable to common shareholders
Net income / (loss) attributable to owners of theparent available for distribution to commonshareholders
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- 28 -FY2020(from April 1, 2020
to March 31, 2021)

5,012(36,578)

－

－

5,012

(36,578)

81,22882,029

(7)

-

[(7)]
1,914

[-]
-

[1,914][-]－－