Earnings Explanatory Meeting
April 1, 2011 to March 31, 2012

Earnings Presentation Material(May 18, 2012)* 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.

Japan Airport Terminal Co., Ltd.
http://www.tokyo-airport-bldg.co.jp/

Earnings Explanatory Meeting
April 1, 2011 to March 31, 2012

1. Review of Consolidated Financial Results for FY11
2. Consolidated Financial Forecast for FY12
3. Issues and Efforts which JAT Needs to Address
4. Current Status and Prospects of Haneda-International
5. Summary of JAT Group Business
Isao Takashiro, President

JAPAN AIR TERMINAL

1. Review of Consolidated Financial Results for FY11
(1) Consolidated Financial Results
BusinessEnvironment

Though movement toward a gradual recovery from the severe economic conditions
brought on by the Great East Japan Earthquake and other causes was seen, thefuture remains clouded by factors like downturns in overseas economies and yen
appreciation.
As a result, passenger volume, which declined sharply at the beginning of the fiscal
year but later began to steadily recover, was down for the full year, except forinternational traffic at Haneda.

Passenger Volume Rate of change (with respect to previous period)
AirportPrincipal
Measures

FY11 1H(%)

FY11 2H(%)

No. ofpassenger
volume(thousands)

FY11(%)

Haneda – Domestic

-10.1

2.3

-4.2

56,340

Haneda –International

104.7

21.3

50.5

7,240

Narita

-23.1

-0.2

-12.7

26,920Kansai

-10.7

5.5

-2.9

10,100• Increase in the Haneda Domestic Passenger Facility Charge (PFC)• Changes in store development, and holding of food fair and other events• Strengthening of strong-yen-inspired sales promotions targeting Japanesetravelers• Implementation of urgent PL improvement and electricity-saving measures
2JAPAN AIR TERMINAL(2) Consolidated Financial Results
1) Difference from FY10
• Lower net sales and earnings due largely to the impact of disaster-caused passenger volumedecline
2) Difference from adjusted forecast• Net sales were slightly lower than expected, but operating income/loss was higher due toefforts to cut repair expenses and other costs.
Ordinary income was also higher than expected (vs. an expected loss), with lower-thanprojected investment loss on equity method, but net income/loss came in below forecast
because of the recording of impairment losses by subsidiaries.
(Billions of yen)

１H

2H

FY

FY11

FY10

ChangeFY11

FY10ChangeFY11

FY10ChangeAdjusted
forecast*1

Operatingrevenues

62.5

65.0

-2.4

66.8

69.6

-2.8

129.3

134.7

-5.3

131.7

-2.3

Operatingincome/
loss

-0.2

3.3

-3.6

1.1

0.7

0.3

0.8

4.1

-3.3

0.5

0.3

Ordinary
income/
loss

-0.7

3.1

-3.9

0.9

-0.01.00.1

3.1-2.9

-0.8

0.9

Net
income/loss-0.9

1.2-2.1

-1.7

-0.3

-1.3

-2.6

0.9-3.5-2.4-0.2

Items*1 Adjusted financial forecast announced in December 2011

3Difference

JAPAN AIR TERMINAL(3) Consolidated Balance Sheets
Items
Items

(Billions of yen)

FY11End-FY11(Results)（Results）

FY10End-FY10(Results)（Results）

ChangeChangeTotal assets
Total assets

189.1
189.2

199.0
199.0

-9.8
-9.8

Total liabilities
Total liabilities

89.7
89.8

96.4
96.4

-6.7
-6.6Net assets
Net assets
Total liabilities and net
Total liabilities and net
assetsassets[Reference][Reference]

99.4
99.3

102.5
1,02.5-3.1-3.1

189.1
189.2

199.0
199.0

-9.8
-9.8

EquityEquity ratio
ratio

51.7%
51.7%

50.6%
50.6%

1.1P
1.1P

(4) Capital Expenditures and Depreciation Expenses
Items

FY11(Results)

FY10(Results)(Billions of yen)

ChangeCapital expenditures

8.1

13.4

-5.2

Depreciation expenses

13.9

13.2

0.74

JAPAN AIR TERMINAL

2. Consolidated Financial Forecast for FY12(1) Summary of Consolidated Financial Forecast for FY12Business
Environment

Passenger
Volume Forecast

Principal
Measures

While the weak overseas economy remains a risk factor, the general economic recovery trend
is expected to continue;
Against the backdrop of this projected outlook, expectations are high for a substantial
positive turnaround in passenger volume during the first half of FY12 reflecting the reboundfrom the impact of the previous period’s earthquake disaster.

Rate of change (with respect to previous period)
Airport

FY12 1H(%)

No. ofpassenger
volume(thousands)

FY12

FY12 2H(%)(%)

Haneda –Domestic

10.1

1.3

5.6

59,500

Haneda –International

15.8

2.8

9.0

7,900

Narita

16.5

6.7

11.4

30,000Kansai

17.6

0.9

8.8

11,000• Measures for addressing vacant building space• Measures for food and beverage business• Efforts to improve cost management for terminal operations, etc.
• Development of new revenue sources

5

JAPAN AIR TERMINAL(2) Consolidated Financial Forecast for FY121) Difference from Prior-Year Results• With recovering passenger volume expected to drive increases in merchandise sales and the Haneda DomesticPassenger Facility Charge (PFC), higher sales are seen resulting from various sales initiatives. Combined withdeclines in depreciation and repair expenses, the performance outlook calls for higher net sales and earnings.
2) Forecast vs. Medium-Term Business Plan
• Given the impact of the divergence of passenger volume forecasts from the original projections forming the basis of
the figures in the Medium-Term Business Plan, and the impact of negative factors like the return of office space byairline companies and a hike in land lease expense, which came into play in 2H FY2010, Medium-Term Business Plan
targets will not be achieved.
(Billions of yen)

Items

FY12(Forecast)

FY11(Results)

Rate ofchange(%)

ChangeMedium-termbusiness
plan*1

Difference

Operatingrevenues

135.0

129.3

5.6

4.3

152.1

-17.1

Operatingincome

3.8

0.8

2.9-

6.3-2.5

Ordinary
income

3.0

0.1

2.8-

5.1

-2.1

Net income

1.4-2.6

4.0-

2.5

-1.1

Capitalexpenditures

8.8

8.1

0.7

Depreciation
expenses

13.0

13.9

-0.9

¥7

¥7

Annual dividend*1Medium-term business plan announced in May 2010

6[Reference]Passenger volume forecasts reflected in theMedium-term Business Plan
(Projection for FY12)
Haneda domestic traffic:
62.20 million
Haneda international traffic:
8.60 million
Narita traffic:
34.50 million(including international and domestic)
Kansai international traffic:
9.54 million

JAPAN AIR TERMINAL(3) Forecast of Operating Revenues by Segment(Billions of yen)

Items

FY12(Forecast)

FY11(Results)

Rate of change(%)

ChangeFacilities management

42.6

42.5

0.0

0.1

Rent revenue

13.4

14.1

-0.7

-5.4

Facility user charges revenue

15.9

15.4

0.43.1Other revenues

13.3

12.9

0.3

2.4

Merchandise sales

77.2

72.9

4.2

5.8

Sales at domestic terminal stores

31.5

29.4

2.0

7.0

Sales at international terminalstores

16.5

13.2

3.2

24.2

Other sales

29.2

30.2

-1.0

-3.4

Food and beverage

15.2

13.8

1.3

9.6

Sales from restaurants

9.0

8.2

0.7

9.0

Sales from in-flight meals

4.8

4.1

0.6

15.8

Other sales

1.4

1.4

-0.0

-5.1

7

JAPAN AIR TERMINAL

３．Issues and Efforts which JAT Needs to Address(1) Measures for Addressing Vacant Building Space■ Opening of the “Isetan Haneda Store” on the 2nd floor of Terminal 1: Approx. 850m2■ Opening of “First Cabin Haneda Terminal 1” on the 1st floor of Terminal 1: Approx.
1,600m2■ Negotiations underway with potential renters for other new uses (other than officespace for airport-related and other businesses)■Start discussions of rent and agreement terms and conditions with airline companies
to avoid further vacancies among spaces they currently use for offices(2) Measures for Food and Beverage Facilities
Background
Operating loss in the food and beverage segment: Further deterioration in the Company’s consolidated
performance (net income/loss) due to such factors as the drop into an operating loss caused by the decline inpassengers as a result of the earthquake disaster and other incidents in FY10 as well as impairment losses broughtto account and the reversal of deferred tax assets

Basic Restructuring■ Restaurants: Revamping of store strategy, reduction of fixed cost, changes in procurement of food supplies,
improvements in store operation efficiency, and other measures■ In-flight meals: Aggressive strengthening of sales efforts to gain new customers, and comprehensive efforts toboost operational efficiency through various measures including the reduction of costs
8

JAPAN AIR TERMINAL(3) Review of Cost Management for Terminal and Other Operations■ Cut costs related to subcontracting agreements with group companies and group outsourcing■ Organizational and HR system reforms, integration of the HR and accounting departments■ Cost reductions[Domestic terminal stores]・Scheduled to switch to no-return procurement with development ofprivate-brand products[Duty-free stores]
・Strengthening of sales promotions of high-margin products (mainbrands) and procurement rebates for sales increases under negotiation(4) Development of New Revenue Sources■Haneda ― domestic■Haneda ― international• Opening of the “Isetan Haneda Store” and “First Cabin Haneda ―Terminal 1”• Attraction of other types of business also under consideration•JAT, Mitsubishi Estate, and Royal Park Hotels & Resorts will
partner in hotel operations(“Royal Park Hotel Haneda (assumed name)” is scheduled to open in autumn 2014)■Business outside Haneda
Domestic】• Opening of a “Tokyo’s Tokyo” store on the 5th floor of Tokyu Plaza
Omotesando Harajuku【Overseas】• Scheduled to open in July 2012 a “Tabi no Kahin” store (store No. 2) on
the 2nd floor of Domestic Terminal 2 of Chengdu Shuangliu
International Airport in China■Others• Startup of “Japan Airport Delica,” a joint venture with JALUX• Planning and sales of tour cruises and other services at the Haneda
boat landing through tie-ups that include an airport hotel and travel
agents9

JAPAN AIR TERMINAL

４． Current Status and Prospects of Haneda-International

FY11Landing slots

Daytime：30 thousand/year(Approx. 80/day)
Early morning and late evening：30 thousand/year(Approx. 80/day)Total：60 thousand/year(Approx. 160/day)Terminalbuilding

Floor space：Approx. 159,000㎡
Fixed spots：10 spots

FY12 / FY13
Though the number of landing
slots will not increase, U.S. andEuropean airlines (earlymorning and late evening) thathave yet to use all of theirallotted slots are expected tosteadily increase their flightnumbers.
Expansion work
Bidding↓
Construction start↓
Construction finish*

FY14
Daytime：60 thousand/year(Approx. 160/day)
Night：30 thousand/year(Approx. 80/day)Total ：90 thousand/year(Approx. 240/day)Floor space：Approx. 235,000㎡
Fixed spots: 18 spots* With certain exceptions
Passenger
volumeApprox. 7,250 thousand/year(Approx. 20 thousand/day)

JAT earnings

Revenues：Approx. ¥20 billions
Operating income： Approx. ¥1 billion(Operating income
ratio：Approx. 5％)

The number of foreign tourists
visiting Japan is projected to riseas the number of flights
increases.

• Increase in per-person productivity
based on changes in staffing
specifications for existing service
provision units• Review of merchandiseprocurement methods and costs, etc.
1012.50 million+α/year(Approx. 34 thousand+α/day)

Aim to further increase revenues
and operating margins with the helpof increases in both travelers andstores.

JAPAN AIR TERMINAL

Reference: Number of Flights as of May 1, 2012 (Departures lights/day)
Daytime approx. 30 thousand/year (6 am – 11 pm)

Time of midnight and early morning Approx. 30 thousand/year (6 am – 11 pm)＜Outbound flights 40/day＞＜Outbound flights 40/day＞(including cargo flights)[Destinations] [Landing slots][No. of flights][Destinations][Landing slots] [No. of flights]

China40-412

South Korea

42-288Hong Kong

40-4

Hong Kong

44

Singapore

44

Total

4032

Malaysia

11Thailand

23

Indonesia

11France21-1

UK

21-1

Germany

41-3

Netherlands

20-2

Canada20-2

USA87China168

South Korea

12Taiwan-8-8+1(Denpasar: Launch on Apr. 28, 2012)-1(Frankfurt: Launch on Jan. 21 2012)(Detroit: Re-launch on Apr. 28, 2012)(New York: Planned re-launch on June 3, 2012)* Prepared by the Company based on TIAT data
* Assumes the receipt of Ministry of Land,Infrastructure, Transport and Tourism
authorizations* Changes may be implemented without notice* Excludes non-scheduled charter flights

Total401121-19

JAPAN AIR TERMINAL

5. Summary of JAT Group Business
There has been no change in the perception of Haneda’s medium-to-long term growth potential as a major business
opportunity. Given the accelerating liberalization of air transport, the entrance of LCCs, as well as other factors
promoting greater competition among airline companies, the movement toward unified management (of facilities andland) of national airports, and other significant changes in the Company’s business environment, the current fiscal
year, looking forward to the “new future of airport operations,” has been positioned as one for re-examining existing
operations and giving shape to what our business aspires to be.
Business Development and the Creation of Attractive, Appealing Terminal
Facilities at Haneda

Domestic TerminalInternational Terminal

Dormant Haneda
Property• Execute Fourth Stage of the Plan for Terminal 2 • Collaboration with TIAT Corp. and strengthening • Operation of the Haneda boat landing (forBuilding (Expansion in 3 spots)of backup systems
tourism and disaster-prevention purposes)•Installation of the indoor “Flower Paradise”•Participation in hotel development•Active development planning for dormant areasgarden

羽田空港における新たな事業展開と魅力あるターミナルづくりの推進
Maximization of Haneda's Potential

Demand Creation by the JAT Group(Offering People, Physical Assets, and Money)

UHHA

Special Districtfor Robot
Testing

Challenges outside of Haneda (Development of stores in China and centralTokyo)★Perceptional
breakthrough★Strengthening ofexisting operations

Toward a New Development Stage to Achieve Continuous
Growth under the Next Medium-Term Business Plan
12

★Assess results andpotential of steps taken

Notes regarding projections
Items such as plans, targets, policies, strategies, decisions, financial forecasts, future figures and monetaryamounts in this presentation that is not historical data are projections of the future. These are based on
management’s projections, assumptions, evaluations, judgments, and conditions on information obtainable atthe present time. Realizing these items entail uncertainty and various risks and uncertainty.
This presentation material is not intended to solicit investments. We requests you to make own decision
regarding investments.

Contact

Japan Airport Terminal Co., Ltd., Corporate Planning Division, PR/IR Office
TEL: 03 (5757) 8030
FAX: 03 (5757) 8099
Email: ir@jat-co.com