Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2018 (FY2017) [J-GAAP](Consolidated)
February 7, 2018
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: http://www.tokyo-airport-bldg.co.jp/
Nobuaki Yokota, President and COO
Kazuhito Tanaka, Managing Director
TEL 03-5757-8409
Scheduled date of filing securities report:
February 14, 2018
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 FY2017 (April 1, 2017 to December 31, 2017)(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%

FY2017FY2016

166,683
151,552

10.0
(0.1)

10,5217,255

45.0(26.7)

13,318
10,18030.8(14.3)

9,557
6,770

41.2
(18.0)(Note) Comprehensive income:First nine months of FY2017 ¥11,289 million (31.9%) First nine months of FY2016 ¥8,559 million (-7.6%)

Net income
per shareFirst Nine
Months of

Yen

Diluted net income
per shareYen

FY2017FY2016117.6783.35

112.31
79.53(2) Consolidated Financial Position
Total assets

Net assets per share

Millions of yen

Millions of yen%

Yen

238,023
213,026

133,686
125,43855.0
57.7

1,611.97
1,511.92

As of December 31, 2017
As of March 31, 2017
(Reference) Equity capital:

Equity capital tototal assets

Net assets

As of December 31, 2017 ¥130,938 million

As of March 31, 2017 ¥122,811 million

2. Dividends
Dividends per share
Q1-EndFY2016FY2017FY2017 (Forecast)

Q2-EndQ3-EndYear-End

Annual

Yen

Yen

Yen

Yen

Yen

-

16.00
20.00

-

17.00

33.00

20.00

40.00

(Note) Revisions to the most recently announced dividends forecast for FY2017: No

3. Forecast of Consolidated Financial Results for FY 2017 (April 1, 2017 to March 31, 2018)%: 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

219,000

6.9

11,70023.2

14,60013.7

10,30049.6

126.80(Note) Revisions to the most recently announced forecast of consolidated financial results for FY2017: None

* Notes(1) Significant changes in subsidiaries during the period under review (changes in specified subsidiaries involving changes in scope of
consolidation): None
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 10 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, 201784,476,500 shares
As of March 31, 20172) Number of treasury stock at the period-end:
As of December 31, 2017
3,247,725 shares
As of March 31, 2017
3) Average number of shares outstanding (quarterly consolidated cumulative period):
Third quarter of FY2017
81,228,828 shares
Third quarter of FY2016

84,476,500 shares
3,247,541 shares
81,229,036 shares* This quarterly financial report is not subject to the quarterly review procedure.
* Statements regarding the proper use of financial forecast and other special remarks
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 4 of the appendix materials“1. Qualitative Information on Consolidated Financial Results for the First Nine Months of FY2017 (3) Explanation ofConsolidated 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, 2018 (FY2017)

Contents of the Appendix Materials
1. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR THE FIRSTNINE MONTHS OF FY2017 (APRIL 1, 2017 TO DECEMBER 31, 2017) ..................................................- 2 (1) EXPLANATION OF OPERATING RESULTS ................................................................................ - 2 (2) EXPLANATION OF FINANCIAL POSITION ................................................................................ - 3 (3) EXPLANATION OF CONSOLIDATED FINANCIAL FORECASTS AND OTHER FORWARD-LOOKING
STATEMENTS...................................................................................................................... - 4 2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ....................................- 5 (1) QUARTERLY CONSOLIDATED BALANCE SHEETS .................................................................... - 5 (2) QUARTERLY CONSOLIDATED STATEMENTS OF INCOME AND QUARTERLY CONSOLIDATEDSTATEMENTS OF COMPREHENSIVE INCOME....................................................................... - 7 Quarterly Consolidated Statements of Income .............................................................................. - 7 Quarterly Consolidated Statements of Comprehensive Income ........................................................ - 9 (3) NOTES ON QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS ...................................... - 10 (NOTES ON THE PREMISE OF A GOING CONCERN) .................................................................... - 10 (NOTES ON A SIGNIFICANT CHANGE IN SHAREHOLDERS’ EQUITY) ........................................... - 10 (SIGNIFICANT CHANGES IN SUBSIDIARIES DURING THE PERIOD UNDER REVIEW) ..................... - 10 (ADOPTION OF SPECIAL ACCOUNTING METHODS FOR PREPARATION OF QUARTERLYCONSOLIDATED FINANCIAL STATEMENTS)....................................................................... - 10 (SEGMENT INFORMATION, ETC.) ............................................................................................... - 11 (ADDITIONAL INFORMATION).................................................................................................... - 11 --1-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)

1. Qualitative Information on Consolidated Financial Results for the First Nine Months of FY2017(April 1, 2017 to December 31, 2017)(1) Explanation of Operating Results
During the first nine months of the fiscal year ending March 31, 2018, the Japanese economy has
continued a gradual trend of recovery. Looking ahead, continuing improvement in employment and income,coupled with various government policies, is expected to support moderate economic recovery, though it isimportant to prudently monitor the uncertainty in overseas economies and volatility of capital markets.
The airline industry needs to further strengthen its competitiveness for a number of reasons that aretransforming our business environment, including increased competition caused by industry liberalization(open skies agreements) and expansion of routes by low-cost carriers (LCCs), reform of airport management
structures aimed at enhancing efficiency by integrating airport land and terminal building operations, andmovements aimed at strengthening functions of metropolitan airports. Furthermore, the Japanese government
targets 40 million for annual inbound tourists to Japan in 2020 in order to meet the new challenge of a
tourism-oriented developed nation, and the annual number of inbound tourists for 2017 exceeded 28 million.
A review of passenger volume during the first nine months shows that passengers on domestic flights at
Haneda Airport and on international flights at Haneda Airport, Narita International Airport, and KansaiInternational Airport rose year-on-year.
Under these circumstances, Japan Airport Terminal (“JAT”) Group has laid out its long-term vision of“To be a World Best Airport” so that we can achieve sustainable growth through the creation of new
businesses and the generation of profits, while aiming to be an airport that satisfies the needs of all
stakeholders. Based on this long-term vision, the new medium-term business plan (FY2016 to FY 2020)
identifies three strategic pillars: 1) Pursuit of the ideal of Haneda Airport, 2) Expansion of our businessdomain utilizing our strengths and the diversification of profits, and 3) Reconstruction of our profit base andthe building of competitive advantages. We will continue to reposition and strengthen our organizational andgovernance structure to ensure that we effectively implement these strategies.
As part of our efforts to expand and diversify our business domain and profit base by leveraging ourstrengths, Regus Express, equipped with rental offices, meeting rooms, and a business lounge, has opened in
May 2017 on the fifth floor at Market Place at terminal 1 as the first phase of the business mall projecttargeting business people. The third outlet of Air BIC CAMERA, which offers electronics and other popular
products targeting foreign tourists visiting Japan, has opened in Odaiba. “Power Lounge North”, the third pay
lounge, was renovated and reopened in September 2017 at Haneda's domestic terminal 1. In addition, the“HANEDA Shopping” shopping website and “JAPAN DUTY FREE” pre-order website were upgraded. Also,
we opened a new e-commerce shop on “Kaola.com”, China's cross-border e-commerce site in November
2017, and opened three luxury brand shops at Chubu Centrair International Airport in December 2017.
Furthermore, the airport-style in-city duty-free shop (Japan Duty Free GINZA) has performed well as a resultof various marketing efforts. We will continue to generate profits by taking advantage of opportunities
created by increasing inbound tourists that are expected to continue to grow in the mid- to the long-term.
As a result, consolidated operating revenues for the first nine months of FY 2017 (April 1, 2017 December 31, 2017) increased 10.0% compared with the same period of the previous year to ¥166,683
million. Operating income rose to ¥10,521 million (up 45.0% year-on-year), ordinary income to ¥13,318
million (up 30.8% year-on-year) and net income (attributable to owners of the parent) to ¥9,557 million (up41.2% year-on-year).
In the Skytrax (UK) World Airport Awards in March 2017, Haneda Airport’s passenger terminals wereawarded second place in the World’s Best Airports category, which comprehensively evaluates various
aspects of international airports. This represents a significant jump from fourth place in the previous year. We
were also awarded first place in the World's Cleanest Airports (the fourth time, for the second year in a row)and World's Best Domestic Airports (for the fifth consecutive year). Furthermore, in September 2017, being
recognized as meeting the global best standard, we earned 5-Star Airport status for the fourth year in a row. In
a bid to further enhance our reputation, we will work cooperatively as an entire airport to move together inour preparations for the 2020 Tokyo Olympics and Paralympics Games. With the highest priority placed on
airport customers, we will ensure the safety of the airport and will provide services that offer exceptionalcustomer convenience, comfort, and functionality. Aiming to be the world’s best passenger terminal and toearn the long-term trust of customers, we are committed to contributing to the advancement of airtransportation.
Currently, in order to further strengthen the functions of Tokyo metropolitan airports, thegovernment is taking measures to provide detailed information through explanatory meetings in order to gain
an understanding of local residents and communities.
Under these circumstances, while gaining an understanding of local areas, Tokyo International Air
Terminal Corp. (“TIAT”) has initiated construction for new projects, including a plan to expand theinternational passenger terminal. As part of financing the expansion project, TIAT has developed a plan to-2-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)raise equity by issuing new shares to shareholders.
In response to this, we decided to acquire new shares to be issued by TIAT so that we will fulfill our
responsibilities as a consortium leader of TIAT and provide support to ensure that its business will continue
successfully. By so doing, as operator of domestic passenger terminals, we hope to make efforts to improvecustomer convenience jointly with TIAT, the operator of the international passenger terminal, by leveraging
hub functions for domestic and international flight networks, which are Haneda’s major advantage.
With this acquisition of shares, our shareholdings in TIAT will be increased to 51.00%, which willchange TIAT’s status for our consolidated accounting from an associate accounted for using the equity
method to a consolidated subsidiary. This acquisition is scheduled to be closed on April 27, 2018. Please referto page 11 “Additional Information” for details.
The following is a breakdown of earnings by segment. Note that the figures for operating income are
equivalent to those for segment income.
[Facilities Management]
Rental revenue rose from the same period during the previous year due primarily to an increase in rental
spaces to airlines at Haneda Airport’s domestic terminals.
Revenue from facility user charges rose from the same period during the previous year primarily becausea growth in domestic passenger volume increased user charges revenue for domestic terminal facilities.
Other revenues rose from the same period during the previous year because revenue from outsourcing
business at Haneda’s international terminal and revenue from construction works increased.
As a result, operating revenues from facilities management operations increased to ¥44,293 million (up6.2% year-on-year). Operating income for the segment was ¥5,722 million (up 13.4% year-on-year) despite anincrease in outsourcing expenses and charges for temporary use of national property.
[Merchandise Sales]
Sales at domestic terminal stores rose from the same period during the previous year primarily due to anincrease in domestic passenger volume and sales promotion efforts.
Sales at international terminal stores increased from the same period during the previous year, primarily
because the revenue from airport-style in-city duty-free shops increased, although the change in contract
structure of some shops at Kansai International Airport had negative impact on revenue.
Other revenues (wholesale) rose from the same period during the previous year due to an increase in thewholesaling of products to stores at Haneda’s international terminal in line with growing international
passenger volume at Haneda.
As a result, operating revenues from merchandise sales operations increased to ¥109,689 million (up12.4% year-on-year) and operating income rose to ¥8,235 million (up 53.7% year-on-year) due to growth ingross profit from airport-style in-city duty-free shops as well as decline in operating expenses.
[Food and Beverage]
Sales from food and beverage operations increased from the same period during the previous year as aresult of growth in domestic passenger volume and creation of new menu.
Sales from in-flight meals rose from the same period during the previous year due to an increase in thepassenger load factors of foreign carriers, our clients in this business, and acquisition of new clients.
Other revenues increased from the same period during the previous year due to an increase in outsourcing
business at Haneda’s international passenger terminal.
As a result, operating revenues from food and beverage operations increased to ¥16,832 million (up 4.3%
year-on-year). Operating income for the segment was ¥629 million (up 10.1% year-on-year) coupled withvarious cost saving efforts.
(2) Explanation of Financial Position[Assets]
Current assets increased by ¥5,241 million from the previous fiscal year end to ¥72,796 million. This
increase was primarily due to an increase in cash and deposits by ¥9,504 million and in accounts receivable by¥1,584 million despite a decrease in marketable securities by ¥7,000 million.
Fixed assets increased by ¥19,756 million from the previous fiscal year end to ¥165,227 million, primarily
due to an increase in construction in progress by ¥19,998 million.
As a result, total assets increased by ¥24,997 million from the previous fiscal year end to ¥238,023 million.
[Liabilities]
Current liabilities increased by ¥1,243 million from the previous fiscal year end to ¥36,839 million,
primarily because accounts payable increased by ¥2,047 million despite a decrease in short-term loans payable-3-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)by ¥722 million. Fixed liabilities increased by ¥15,505 million from the previous fiscal year end to ¥67,497
million, primarily because long-term loans payable increased by ¥15,630 million.
As a result, total liabilities increased by ¥16,748 million from the previous fiscal year end to ¥104,336
million.
[Net assets]
Total net assets increased by ¥8,248 million from the previous fiscal year end to ¥133,686 million
primarily because retained earnings increased by ¥6,552 million and valuation difference on available-for-salesecurities increased by ¥1,205 million.
As a result, equity ratio was 55.0% (compared to 57.7% at the previous fiscal year end).
(3) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements
Consolidated profits for the first nine months surpassed forecasts mainly because merchandise sales
progressed steadily driven by better-than-expected passenger numbers both on domestic and international flights.
The forecasts of full-year consolidated results have been left unchanged at this point from thoseannounced on November 8, 2017 in light of the risk that an economic downswing overseas and uncertainty inthe global situation might weaken the domestic economy.

-4-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)

ASSETS
Current assets
Cash and deposits
Accounts receivable
Marketable securities
Merchandise and finished products
Raw materials and stored goods
Deferred tax assets
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
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit assets
Other investments
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS-5-

FY2016(As of March 31, 2017)

First Nine Months of
FY2017(As of December 31,
2017)

32,24016,991
7,000
7,687
178
1,146
2,334
(23)
67,55541,744
18,575
7,329
220
1,137
3,820
(31)
72,796

277,768(197,790)
79,978
10,878(8,384)
2,494
11,412
2,070(1,271)799
1,064
30,524(25,582)
4,941
100,690
1,812

278,948(203,031)
75,917
11,305(8,679)2,625
11,412
2,161(1,430)731
21,062
31,637(26,424)
5,212
116,961
1,821

27,846
6,665
4,999
538
2,933
(16)
42,967
145,471
213,026

32,005
6,663
4,346
538
2,890
46,445
165,227
238,023

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)(Millions of yen)

LIABILITIESCurrent liabilities
Accounts payable
Short-term loans payable
Income taxes payable
Allowance for employees’ bonuses
Allowance for directors’ bonuses
Other current liabilities
Total current liabilities
Fixed liabilities
Bonds with stock acquisition rights
Long-term loans payable
Lease obligations
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 (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-6-

FY2016(As of March 31, 2017)

First Nine Months of
FY2017(As of December 31,
2017)

8,695
9,712
1,913
1,477
227
13,57035,596

10,743
8,990
1,841
782
168
14,31436,83930,096
13,450
527
4,254
464
3,198
51,99287,58830,07729,080
548
4,176
470
3,145
67,497104,336

17,48921,33784,054(3,244)
119,637

17,48921,33790,607(3,245)
126,188

5,444

6,649

(1,545)
52
(776)
3,174
2,626
125,438
213,026(1,364)
53
(588)
4,749
2,748
133,686
238,023

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)(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
Sale of merchandise
Sale of food and beverage
Total operating revenues
Cost of sales
Cost of sales of merchandise
Cost of sales of food and beverage
Total cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and wages
Provision for employees’ bonuses
Provision for directors’ bonuses
Expenses for retirement benefits
Rent expenses
Outsourcing and commission
Depreciation expenses
Other costs and expenses
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Fee and commission expenses
Miscellaneous expenses
Total non-operating expenses
Ordinary income-7-First Nine Months of
FY2016(from April 1, 2016
to December 31, 2016)

First Nine Months of
FY2017(from April 1, 2017
to December 31, 2017)

9,803
13,72818,614
96,774
12,630151,552

9,953
14,24420,927
108,577
12,981
166,683

72,8997,961
80,86070,691

82,242
8,180
90,422
76,260

7,764
647
166
747
9,273
17,458
8,633
18,74363,435
7,255

8,397
722
168
745
9,311
19,315
7,974
19,10365,73910,521

473
274
2,128
448
3,324

473
322
2,152
466
3,413

327
72
400
10,180

245
269
101
616
13,318

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)(Millions of yen)

Extraordinary gains
Gains on sales of investment securities
Gains on sales of fixed assets
Total extraordinary gains
Extraordinary loss
Loss on retirement of fixed assets
Loss on valuation of other investments
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-8-First Nine Months of
FY2016(from April 1, 2016
to December 31, 2016)

First Nine Months of
FY2017(from April 1, 2017
to December 31, 2017)

277
277

1
1

4
4

7
8
15

10,453

13,303

3,597
6,856

3,623
9,680

85

122

6,770

9,557

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)

Quarterly income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
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-9-

First Nine Months of
FY2016(from April 1, 2016
to December 31, 2016)
6,856

First Nine Months of
FY2017(from April 1, 2017
to December 31, 2017)
9,680

78
(3)
212

1,222
0
185

1,416

200

1,703
8,559

1,608
11,2898,460

11,13399

156

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)(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(Significant Changes in Subsidiaries during the Period under Review)Not applicable
Although not falling under the category of changes in specified subsidiary, LANI KE AKUA PACIFIC, INC. wasnewly established during the third quarter and included in the scope of consolidation.
(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 deferred tax accounting is reasonably estimated, and that estimated rate is applied to net income
for the quarterly period to calculate estimated tax expenses.

- 10 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)(Segment Information, etc.)
Segment Information
I.

First nine months of FY2016 (from April 1, 2016 to December 31, 2016)
1. Sales and income (loss) by reportable segment(Millions of yen)

Reportable segments

Quarterly
consolidated
financialstatements Note2

Facilities
Management

Merchandise
Sales

40,31397,023

14,215

151,552-

151,552

Intersegment sales
and transfers

1,382

605

1,921

3,909

(3,909)-

Total
Segment income (loss)

41,695
5,046

97,6295,359

16,136571

155,461
10,977(3,909)(3,721)

151,552
7,255

Operating revenues
Sales to externalcustomers(Notes)Food andBeverage

Adjustments
Total

Note 1

1. Adjustments to the segment income include ¥3,730 million of administration expenses for the parent company’s administration
divisions and others at head office 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

II. First nine months of FY2017 (from April 1, 2017 to December 31, 2017)
1. Sales and income (loss) by reportable segment(Millions of yen)

Reportable segments

Quarterly
consolidated
financialstatements Note2

Facilities
Management

Merchandise
Sales

42,741109,049

14,892

166,683-

166,683

Intersegment sales
and transfers

1,551

640

1,939

4,131

(4,131)-

Total
Segment income (loss)

44,293
5,722

109,689
8,235

16,832
629

170,815
14,586(4,131)(4,065)

166,683
10,521

Operating revenues
Sales to externalcustomers(Notes)Food andBeverage

Adjustments
Total

Note 1

1. Adjustments to the segment income include ¥4,072 million of administration expenses for the parent company’s administration
divisions and others at head office 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(Additional Information)
Business Combination by Acquisition
At the meeting of the Board of Directors held on September 15, 2017, the basic policy was approved regarding
subscribing for a third-party allotment of shares by Tokyo International Air Terminal Corp. (“TIAT”) and theacquisition of additional shares in TIAT on condition of the approval by an extraordinary general meeting of
TIAT shareholders and the completion of other necessary procedures. We hereby announce that we will
officially subscribe for shares of TIAT through the third-party allotment since these necessary conditions weremet on October 26, 2017.
- 11 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2018 (FY2017)

I. Summary of Business Combination
1) Name and business of acquired company
Name: Tokyo International Air Terminal Corp.
Business: Management and operation of International passenger terminal building
2) Primary reasons for business combination
TIAT is a special purpose company for a Private Finance Initiative project that develops and operates theinternational passenger terminal and facilities at Tokyo International Airport (“the Business”). TIAT was
established in June 2006 by an equity consortium consisting of 13 companies, including JAT as leading sponsor,
airlines, and financial institutions. TIAT is currently engaged in the construction, management, and operation of
the international passenger terminal, the car parking facilities for airport users, and other facilities at Tokyo
International Airport (“Haneda Airport”). JAT has been engaged by TIAT to operate facilities maintenance andmanagement, the duty-free shops, and passenger services at Haneda Airport’s international passenger terminal.
JAT plays a central role in the terminal’s management and operation.
The Business has been progressing steadily since the opening of Haneda Airport International Passenger
Terminal on October 21, 2010. The international terminal was expanded in September 2014 in response to anincrease in daytime slots for international flights. Currently, in order to further strengthen the functions of Tokyo
metropolitan airports, the central government is taking measures to provide detailed information throughexplanatory meetings in order to gain an understanding of local residents and communities.
Under these circumstances, while gaining an understanding of local areas, TIAT has initiated construction
for new projects, including a plan to expand the international passenger terminal. As part of financing the
project, TIAT has developed a plan to raise equity by issuing new shares to shareholders.
In response to this, we decided to acquire new shares to be issued by TIAT so that we will fulfill our
responsibilities as a consortium leader of TIAT and provide support to ensure that the Business will continue
successfully. By so doing, as operator of domestic passenger terminals, we hope to make efforts to improvecustomer convenience jointly with TIAT, the operator of the international passenger terminal, by leveraging hub
functions for domestic and international flight networks, which are Haneda’s major advantage.
We will complete the acquisition of new shares to be issued by TIAT by completing payment procedures.
With this acquisition of shares, our shareholdings in TIAT will be increased to 51.00%, which will change
TIAT’s status for our consolidated accounting from an associate accounted for using the equity method to a
consolidated subsidiary.
3) Date of business combination
April 27, 2018 (plan)4) Legal form of business combination
Share acquisition by subscribing for shares through third-party allotment
5) Name of the company after business combination
No changes are made to the name of the acquired company.
6) Percentage of voting rights acquired
Before acquisition
38.78%
Increase on acquisition date
12.22%
After acquisition
51.00%
7) Primary basis for determining acquiring company
By subscribing for new shares through third-party allotment, JAT will own 51.00 % of voting rights in TIAT.
II. Acquisition Cost and Breakdown by the Type of Considerations
These have not been determined at the time of the release of this report.
III. Amount, Reason for Recognition, Amortization Method and Amortization Period of Goodwill
These have not been determined at the time of the release of this report.

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