Note: This document has been translated from the Japanese original primarily using a machine translation tool, forreference purposes only. In the event of any discrepancy between this translated document and the Japaneseoriginal, the original shall prevail. The Company assumes no responsibility for this translation or for direct,
indirect, or any other forms of damages arising from the translation.

Annual Securities Report
From April 1, 2023, to March 31, 2024
(The 80th Fiscal Year)

1. This document is an English translation of the Annual Securities Report (“Yukashoken Hokokusho”) filed via theElectronic Disclosure for Investors’ Network (“EDINET”) system as outlined in Article 27-30-2 of the Financial
Instruments and Exchange Act of Japan on June 26th, 2024. The translation includes a table of contents and paginationthat are not included in the electronic filing.

2. Appended to the back of this document, are English translations of the auditors’ report that was attached to the Annual
Securities Report when it was filed using the aforementioned method, and the internal control report that was filed at
the same time as the Annual Securities Report.

Japan Airport Terminal Co., Ltd.
(E03863)

Certain References and Information
This report is prepared for overseas investors and is based on the contents of the Annual Securities Report (“Yukashoken
Hokokusho”) of Japan Airport Terminal Co., Ltd. filed with the Director-General of the Kanto Local Finance Bureau ofJapan on June 26, 2024.
In this report, Japan Airport Terminal Co., Ltd. is hereinafter referred to as the “Company” and together with its
consolidated subsidiaries as the “Group.”
The accompanying consolidated financial statements of the Company and the Group have been prepared by accounting
principles generally accepted in Japan, which differ in certain respects from International Financial Reporting Standards(IFRS) in the application and disclosure requirements.
Amounts less than one million yen have been rounded down in the presentation of the accompanying consolidated
financial statements. In addition, certain amounts have been reclassified from the previous year’s financial statements toconform to the current year’s presentation.

Cautionary Statement concerning forward-looking statements:
This report contains forward-looking statements that reflect management’s views and assumptions in light of theinformation currently available concerning certain future events, including expected financial position, operating results,
and business strategies. These statements can be identified by the use of terms such as “will,” “believes,” “should,”“projects,” “plans,” “expects” and similar terms and expressions that identify future events or expectations. Actual results
may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be
assured. Any forward-looking statements speak only as of the date of this report, and the Company assumes no duty to
update such statements.

Contents
CoverPart I. Company Information ……………………………………………………………………………......

1

Item 1. Overview of the Company and Its Consolidated Subsidiaries ………………………………....

1

1. Summary of Business Results ……………………………………………………………............

1

2. History ……………………………………………………………………………………….......

3

3. Description of Business ………………………………………………………………………….

4

4. Overview of Subsidiaries and Affiliates ………………………………………………….............

5

5. Employees ……………………………………………………………………………………….

7

Item 2. Business Overview ……………………………………………………………………………...

9

1. Management Policy, Business Environment and Issues to be Addressed ………………………

9

2. Sustainability policy and initiatives …………………………………………………………….

12

3. Risk Factors …………………………………………………………………………………........

23

4. Analyses of Consolidated Financial Position, Operating Results, and Cash Flows
from the management’s perspective …………………………………………….……………….

26

5. Material Agreements …….………………………………………………………………………...

33

6. Research and Development Activities ……………………………………………………………

33

Item 3. Property, Plant, and Equipment …………………………………………………………………

34

1. Overview of Capital Investments ……………………………………………………….……….

34

2. Major Facilities ………………………………………………………………………………….

34

3. Plans for Capital Investment, and Disposal of Property, Plant, and Equipment.……….……….

35

Item 4. Information on the Company ……………………………………………………………………

36

1. Information on the Company’s Share ….…………………………………………………………

36

2. Acquisitions of Treasury Stock …………….…………………………………………….............

40

3. Dividend Policy ………………………………………………………………………………….

41

4. Corporate Governance ……………………………………………………………………............

42

Item 5. Financial Information …………………………………………………………………………...

73

1. Consolidated Financial Statements, and Others ………………………………………………….

74

A. Consolidated Financial Statements …………………………………………………………...

74

B. Others ………………………………………………………………………………………...

116

2. Non-Consolidated Financial Statements, and Others …………………………………………….

117

A. Non-Consolidated Financial Statements ……………………………………………………...

117

B. Primary assets and liabilities ………………………………………………………………….

130

C. Others ………………………………………………………………………………………...

130

Item 6. Stock-Related Administration for the Company ………………………………...........................

131

Item 7. Reference Information on the Company ………………………………………….......................

132

1. Information on the Parent Company ……………………………………………………………...

132

2. Other Reference Information …………………………………………………………..................

132

Part II. Information on Guarantors for the Company ……………………….…….………………………...

132[Independent Auditors’ Report][Internal Control Report]

Cover【Document title】

Annual Securities Report (“Yukashoken Hokokusho”)【Clause of stipulation】

Article 24, Paragraph 1 of the Financial Instruments andExchange Act of Japan【Place of filing】

Director-General of the Kanto Local Finance Bureau【Filing date】

June 26, 2024

【Fiscal year】

The 80th Fiscal Year (from April 1, 2023 to March 31, 2024)【Company name】

Nihon Kuko Building KK.

【Company name in English】

Japan Airport Terminal Co., Ltd.

【Title and name of representative】

Nobuaki Yokota, President and COO【Address of registered head office】

3-3-2, Hanedakuko, Ohta-ku, Tokyo, Japan【Telephone number】+81 (0)3 5757-8020【Name of contact person】

Isamu Jinguji, Senior Managing Executive Officer【Nearest place of contact】

3-3-2, Hanedakuko, Ohta-ku, Tokyo, Japan【Telephone number】+81 (0)3 5757-8020【Name of contact person】

Isamu Jinguji, Senior Managing Executive Officer【Place for public inspection】

Tokyo Stock Exchange, Inc.
(2-1, Nihonbashi Kabutocho, Chuo-ku, Tokyo, Japan)

Part I. Company Information
Item 1. Overview of the Company and Its Consolidated Subsidiaries
1. Summary of Business Results(1) Consolidated
Fiscal year
Year ended
Operating Revenues
Ordinary profit (loss)
Net profit (loss) attributable to owners of the parent
Comprehensive income
Net assets
Total assets
Net assets per share(Yen)
Net profit (loss) per
Basic
(Yen)
share
Diluted(Yen)
Equity ratio(%)
Return on equity(%)
Price-earnings ratio(Times)Net cash provided by (used in) operating activities
Net cash used in investing activities
Net cash provided by (used in) financing activities
Cash and cash equivalents
Number of employees[Separately, average number of (Persons)temporary employees]

76th
March 31,2020
249,756
8,705
5,012
4,119
201,899
521,3632,001.83
61.71
60.20
31.19
3.08
67.65
20,222(57,334)
21,644
71,795
3,095[1,389]77th
March 31,2021
52,572(57,320)(36,578)(62,212)
195,544
519,193
1,910.83(445.92)
34.28(4,387)(25,268)
78,228120,355
3,110
[708]

(Millions of yen, unless otherwise stated)
78th
79th
80th
March 31, March 31, March 31,
2022
2023
2024
57,057113,050
217,578(43,861)(12,064)
27,225(25,217)(3,901)
19,255(39,533)(15,056)
28,906
156,009140,951
166,036
463,878446,955
460,423
1,655.32
1,613.62
1,805.67(270.75)(41.89)206.75
33.24
33.62
36.53
12.09
28.68
(9,305)
16,32647,761(4,926)(10,627)(42,986)(9,035)(12,641)(19,649)
97,12890,24175,395
2,729
2,499
2,660
[399]
[471]
[586]

Notes:
1) The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and others have been applied fromthe beginning of the 78th fiscal year, and the key management indicators for the 78th fiscal year and thereafter are those after theapplication of the said accounting standard and others.
2) Diluted net profit per share for the 77th fiscal year is not shown in the above table because a net loss per share was recorded, although
there are residual shares. Diluted net profit per share for the 78th, 79th, and 80th fiscal years is not shown in the above table because
there are no residual shares.
3) Return on equity and price-earnings ratios for the 77th, 78th, and 79th fiscal years are not shown due to the net loss attributable toowners of the parent.

-1-(2) The Company
Fiscal year
Year ended
Operating Revenues
Ordinary profit (loss)
Net profit (loss)
Capital stock
Number of common shares issued(Thousandsof shares)

76th
March 31,2020
174,2691,250
759
17,48984,47677th
March 31,2021
53,178(15,827)(11,931)
38,126
93,145(Millions of yen, unless otherwise stated)
78th
79th
80th
March 31, March 31, March 31,
2022
2023
2024
53,166
88,212
143,354(4,485)
9,156
17,269(4,385)
5,308
11,17838,12638,12638,126
93,145
93,145
93,145

Net assets
100,830
142,979
139,115
143,571
151,944
Total assets
282,426
320,019
296,480
306,436
327,636
Net assets per share(Yen)
1,241.32
1,535.16
1,493.67
1,541.52
1,631.42
Cash dividend per share
32
16
67
(Yen)
[Of the above interim dividend per share]
[22]
[-]
[-]
[-]
[25]
Net profit (loss) per share
(Yen)
9.34
(145.45)(47.09)57.00
120.02
Net profit (loss) per share reflecting the (Yen)
9.04
potential dilution
Equity ratio
(%)
35.70
44.68
46.92
46.85
46.38
Return on equity
(%)
0.74
3.76
7.57
Price-earnings ratio(Times)446.78115.7949.41
Dividend payout ratio(%)
342.4428.07
32.41
Number of employees
290
264
251
272
293
[Separately, average number of temporary (Persons)
[-]
[-]
[-]
[-]
[-]
employees]
Total shareholders return
91.0
118.0
121.2
143.2
130.3
(%)
[Of TOPIX Machine Index][90.5][128.6][131.2][138.8][196.2]Highest share price of each fiscal year
(Yen)
6,240
6,920
6,280
6,960
7,488
Lowest share price of each fiscal year
(Yen)
3,450
3,600
4,310
4,900
5,461
Notes:
1) The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and others have been applied fromthe beginning of the 78th fiscal year, and the key management indicators for the 78th fiscal year and thereafter are those after theapplication of the said accounting standard and others.
2) Diluted net profit per share for the 77th fiscal year is not shown in the above table because a net loss per share was recorded,
although there are residual shares. Diluted net profit per share for the 78th, 79th, and 80th fiscal years is not shown in the abovetable because there are no residual shares.
3) Return on equity and price-earnings ratios for the 77th and 78th fiscal years are not shown due to the net loss for the period.
4) Share prices in the table are quoted from the Tokyo Stock Exchange Prime Market from April 4, 2022, and from the First Sectionof the Tokyo Stock Exchange before April 4, 2022.

-2-

2. History
July 1953
May 1955
January 1972
May 1974
March 1978
October 1979
February 1988
February 1990
September 1991
January 1993
September 1993
June 1994
March 1998
July 1999
July 2004
July 2004
December 2004
February 2005
June 2006
February 2007
April 2007
July 2009
July 2009
October 2010
October 2010
October 2010

January 2011
November 2011
April 2013
September 2014
April 2016
October 2017
April 2018
July 2018
September 2019
December 2019
March 2020
April 2020
April 2022

Japan Airport Building Co., Ltd. was established with a capital of 150 million yen for the construction of a newterminal building with private capital based on the policy of the Minister of Transport in January 1953.
The terminal building of Tokyo International Airport opened.
Nihon Kamaburo Kanko Co. (currently a consolidated subsidiary of Japan Airport Logitem Co., Ltd.) wasestablished.
Japan Airport Technical Service Corporation (renamed Airport Max Co., Ltd.) was established.
Narita Sales Office was opened with the opening of the New Tokyo International Airport (now Narita
International Airport).
Headquarters moved to Marunouchi, Chiyoda-ku, Tokyo.
Tokyo Airport Restaurant Co., Ltd., Cosmo Enterprise Co., Ltd., and International Trade Inc. were consolidated
through the purchase of additional shares.
Listed on the Second Section of the Tokyo Stock Exchange.
Listed on the First Section of the Tokyo Stock Exchange.
Big Wing Co., Ltd. (currently a consolidated subsidiary) was established.
Terminal 1 of Tokyo International Airport opens.
Osaka Sales Office opened with the opening of Kansai International Airport.
Tokyo International Airport International Passenger Terminal Building opened.
Establishment of Japan Airport Techno Co., Ltd. (now a consolidated subsidiary)
Headquarters moved to Haneda Airport Terminal 1, Ota-ku, Tokyo
Haneda Airport Enterprise Co., Ltd. (currently a consolidated subsidiary) and Narita Airport Enterprise Co., Ltd.
were established.
Terminal 2 of Tokyo International Airport opens
Chubu sales office opened with the opening of Chubu International Airport.
Tokyo International Air Terminal Corporation (TIAT, currently a consolidated subsidiary) is established throughjoint investment.
The extension of Terminal 2 (South Pier) at Tokyo International Airport begins operations.
Haneda Airport Security Co., Ltd. (currently a consolidated subsidiary) and Haneda Passenger Service Co., Ltd.
(currently a consolidated subsidiary) were established.
Airport Max Co., Ltd. and Japan Airport Techno Co., Ltd. merged (now Japan Airport Techno Co., Ltd. (now aconsolidated subsidiary))
Integration of Haneda Airport Enterprises Co., Ltd. and Narita Airport Enterprises Co., Ltd. (now Haneda
Airport Enterprise Co., Ltd.)
Established Japan Airport Ground Handling Co., Ltd. (now a consolidated subsidiary) as a joint venture.
Terminal 2 Extension (south side of main building) opens.
With the opening of the new international terminal (currently Terminal 3) at Tokyo International Airport, theCompany began to provide consignment, wholesale, and other services in conjunction with the opening of the
new international terminal.
Japan Airport Terminal Trading (Chengdu) Co., Ltd. establishedRenovation work completed at Tokyo International Airport’s Terminal 1 (the departure area and the roof area)
The extension of Terminal 2 (South Pier 3) at Tokyo International Airport is put into operation.
Japan Duty-Free Fa-So-La Isetan Mitsukoshi Co., Ltd. was established as a joint venture (currently aconsolidated subsidiary)
Air BIC Inc. (currently a consolidated subsidiary) is established through joint investment.
Lani Ke Akua Pacific Inc. (currently a consolidated subsidiary) is established.
TIAT becomes a consolidated subsidiary through the issuance of new shares to third parties.
Establishment of Haneda Future Research Institute Inc.
Renovation of Tokyo International Airport Terminal 1 completed (B1 and 1F)
Tokyo International Airport’s International Terminal (now Terminal 3) opens in the northern expansion area.
International flight facilities at Terminal 2 of Tokyo International Airport begin operations.
Integration of Cosmo Enterprise Co., Ltd. and CTT Co., Ltd. (currently a consolidated subsidiary of Cosmo
Enterprise Co., Ltd.) (now Cosmo Enterprise Co., Ltd.)
Moved from the First Section of the Tokyo Stock Exchange to the Prime Market due to a revision of the market
classification of the Tokyo Stock Exchange.

-3-3. Description of Business
The Group (the Company, its subsidiaries, and affiliates) consists of the Company (Japan Airport Terminal Co., Ltd.),
24 subsidiaries, and 15 affiliates. The Group is engaged in facility management and operations, including the management
and operation of passenger terminals at Haneda Airport and the provision of services to domestic and international
passengers, as well as merchandise sales and restaurant businesses. We also sell merchandise at Narita Airport, Kansai
Airport, Chubu Airport, and other airports.
The positioning of our Group companies and their business activities are as follows.
Facility management
The Company and its subsidiary, Tokyo International Air Terminal Corporation (TIAT), are engaged in the management
and operation of passenger terminal facilities, primarily the leasing of facilities to airlines and other aviation-relatedcompanies, and the maintenance and operation business.
The Japan Airport Techno Co., Ltd. and 6 affiliates are engaged in the maintenance, repair, operation, security, cleaning,
passenger transportation, and ground handling of passenger terminal facilities. The Big Wing Co., Ltd. and 2 othersubsidiaries provide services such as advertising agency and passenger services at passenger terminals.
The Haneda Future Research Institute Inc. and 5 affiliates are principally engaged in the airport management consulting
business in Japan and overseas.
Merchandise sales
The Company, TIAT, 9 other subsidiaries, and 3 affiliates are engaged in the merchandise sales business, primarily
selling merchandise to airline passengers at Haneda Airport, Narita Airport, and Kansai Airport for domestic andinternational flights, and selling merchandise wholesale to airport companies, including Chubu Airport.
The Japan Airport Logitem Co., Ltd., a subsidiary of the Company, is engaged in the transportation and warehousingof goods.
Food and beverage
The Company, TIAT, and 3 other subsidiaries provide food and beverage services primarily to passengers of domestic
and international flights at Haneda and Narita Airports.
Cosmo Enterprise Co., Ltd. and 1 affiliate are engaged in the production and sale of in-flight meals and the production
and sale of frozen foods for international airlines at Haneda and Narita Airports.

CustomerJapan Airport Terminal Co., Ltd. (The Company)
Facility Management
S
u
b
s
i
d
i
a
r
i
e
s
i A
a f
t f
e i
d l

Notes:

Merchandise Sales

Food and beverage

Tokyo International Air Terminal Corporation (TIAT)
Haneda Future Research Institute Inc.
Japan Airport Techno Co., Ltd.

Japan Duty-Free Fa-So-La Isetan Mitsukoshi Co., Ltd.

Tokyo Airport Restaurant Co., Ltd.

Haneda Airport Security Co., Ltd.

International Trade Inc.

Cosmo Enterprise Co., Ltd.

Haneda Passenger Service Co., Ltd.

Japan Airport Logitem Co., Ltd.

Kaikan Kaihatu Co., Ltd.

Japan Airport Ground Handling Co., Ltd.

Haneda Airport Enterprise Co., Ltd.

Lani Ke Akua Pacific Inc.

Sakura Shokai Co., Ltd.

Hamashin Co., Ltd.
Air BIC Inc.
Japan Airport Terminal Trading (Chengdu) Co., Ltd.

3 non-consolidated,nor equity method

2 non-consolidated,nor equity method

Big Wing Co., Ltd.
Airport Transport Service Co., Ltd.

Japan Airport Delica Inc.

AGP CORPORATION
9 not included in the equity method
1) Consolidated subsidiaries:
2) Non-consolidated subsidiaries:3) Affiliated included in the equity method:4) Affiliated not included in the equity method:

3 not included in the equity method
19 companies
5 companies
3 companies
12 companies-4-4. Overview of Subsidiaries and Affiliates[Consolidated subsidiaries](Millions of yen, unless otherwise stated)
Commonstock,
investments

Principal
business

Ownershipof votingrights (%)

Company nameLocation

Tokyo Airport Restaurant Co., Ltd.

Ohta-ku,
Tokyo

990

Food
and
beverage

60.5

The lessee of facilities and equipment.
Directors serve concurrently.

Japan Duty-Free Fa-So-La Isetan
Mitsukoshi Co., Ltd. (Note 5)

Chuo-ku,
Tokyo

490

Merchandise
sales

67.5

The Company’s products are purchased.
Directors serve concurrently.
The Company provides financial support.

Haneda Future Research InstituteInc. (Note 5)

Ohta-ku,
Tokyo

200

Facilities
management

100.0

The Company’s business consulting services
are outsourced.
Directors serve concurrently.
The Company provides financial support.

Cosmo Enterprise Co., Ltd.

Narita,
Chiba

180

Food
and
beverage

79.9

Lease of office and warehouse space to theCompany.
Directors serve concurrently.
The Company provides financial support.

International Trade Inc.

Ohta-ku,
Tokyo

150

Merchandise
sales

100.0

The lessee of facilities and equipment.
Wholesale products to the Company.
Directors serve concurrently.

Japan Airport Logitem Co., Ltd.

Ohta-ku,
Tokyo

150

Merchandise
sales

100.0

The lessee of facilities and equipment.
Transportation and inspection are entrusted.
Directors serve concurrently.

Big Wing Co., Ltd.

Ohta-ku,
Tokyo

150

Facilities
management

100.0

The lessee of facilities and equipment.
Advertising and other services
outsourced.
Directors serve concurrently.

Japan Airport Techno Co., Ltd.

Ohta-ku,
Tokyo

150

Facilities
management

100.0

The lessee of facilities and equipment.
Maintenance, management, and cleaning ofcompany property under contract
Directors serve concurrently.

Tokyo International Air Terminal
Corporation (Notes 2,5,7)

Ohta-ku,
Tokyo

100

Facilities
management

51.0

The lessee of facilities and equipment.
The Company’s products are purchased.
Outsourcing business operations to theCompany.
The Company provides financial support.

Air BIC Inc.

Ohta-ku,
Tokyo

100

Merchandise
sales

51.0

The operation of the Company’s merchandise
sales business is entrusted.
Directors serve concurrently.
The Company provides financial support.

Haneda Airport Enterprise Co., Ltd.

Ohta-ku,Tokyo

50

Merchandise
sales

100.0

The operation of the Company’s merchandise
sales business is entrusted.
Directors serve concurrently.

Haneda Airport Security Co., Ltd.

Ohta-ku,Tokyo

50

Facilities
management

100.0

Contracts for security services for theCompany’s facilities.
Directors serve concurrently.

Haneda Passenger Service Co., Ltd.

Ohta-ku,Tokyo

50

Facilities
management

100.0

The Company’s passenger services areoutsourced.
Directors serve concurrently.

Japan Airport Terminal Trading(Chengdu) Co., Ltd.

Sichuan,People's
Republic of
China

300

Merchandise
sales

100.0

Directors serve concurrently.

Lani Ke Akua Pacific Inc.

Hawaii,
UnitedStates

420 million
dollarsFood
andbeverage

100.0

n/a

-5-

RelationshipareCommonstock,
investments

Principal
business

Ownershipof votingrights (%)

Company nameLocation

Relationship

Sakura Shokai Co., Ltd. (Note 3)

Ohta-ku,Tokyo

50

Facilities
management

100.0[100.0]Waste disposal at the Company’s facilities iscontracted.
Directors serve concurrently.
The Company provides financial support.

Hamashin Co., Ltd. (Note 3)

Ohta-ku,Tokyo

50

Merchandise
sales

100.0
[100.0]Wholesale products to the Company.
Directors serve concurrently.

Japan Airport Ground Handling Co.,
Ltd. (Note 3)

Ohta-ku,Tokyo

50

Facilities
management

100.0[100.0]

Directors serve concurrently.

Kaikan Kaihatsu Co., Ltd. (Notes
3,4)

Chuo-ku,
Tokyo

10

Food
and
beverage

50.0[50.0]The lessee of facilities and equipment.
Directors serve concurrently.

[Affiliated companies accounted for by the equity method](Millions of yen, unless otherwise stated)
Company nameLocation

Commonstock,
investments

Principal
business

Ownershipof votingrights (%)

Relationship

AGP Corporation(Note 6)

Ohta-ku,
Tokyo

2,038

Facilities
management

25.3

The lessee of facilities and equipment.

Japan Airport Delica Inc.

Ohta-ku,
Tokyo

100

Food
and
beverage

49.0

Wholesale products to the Company.
Directors serve concurrently.
The Company provides financial support.

Airport Transport Service Co., Ltd.
(Notes 3,5)

Chuo-ku,
Tokyo

100

Facilities
management

28.0
[0.6]

Directors serve concurrently.
The Company provides financial support.

Notes:
1) Segment names are listed in the Principal Business column.
2) Classified as a specified subsidiary.
3) The figures in brackets in the percentage of voting rights are indirect holdings and are included in the total number of voting rights.
Sakura Shokai Co., Ltd. and Japan Airport Ground Handling Co., Ltd. are owned by Japan Airport Techno Co., Ltd., while HamashinCo., Ltd. and Airport Transport Service Co., Ltd. are owned by International Trade Inc. Additionally, Kaikan Kaihatsu Co., Ltd. isowned by Big Wing Co., Ltd.
4) Although the Company’s ownership interest is less than 50%, it is considered a subsidiary because the Company has significant
influence over the entity.
5) These companies had excess debt. As of March 31, 2024, Tokyo International Air Terminal Corporation (TIAT) had liabilities of
24,469 million-yen, Japan Duty-Free Fa-So-La Isetan Mitsukoshi Ltd. had liabilities of 7,631 million-yen, Haneda Future ResearchInstitute Inc. had liabilities of 421 million-yen, and Tokyo Airport Transport Co. had liabilities of 579 million-yen.
6) Filed an annual securities report.
7) TIAT accounts for more than 10% of consolidated operating revenues (excluding intercompany sales between consolidated
companies).
Main Financial Information is followings.
a) Operating revenues:
82,304 million yenb) Ordinary profit:
9,372 million yenc) Net profit:
12,133 million yend) Net assets:(24,548) million yene) Total assets:
159,053 million yen-6-5. Employees(1) Consolidated(As of March 31, 2024)
Operating segment
Number of employees
Facilities Management
981
[152]
Merchandise Sales
940
[211]
Food and Beverage
561
[219]
Segment total
2,482
[582]
Corporate
178
[4]
Total
2,660
[586]
Notes:
1) The number of employees represents the number of employees actually at work. Separate from that, the average number of
temporary employees during this fiscal year is disclosed in square brackets.
2) The number of employees under “Corporate” refers to employees working for administrative departments who cannot be classified
into specific operating segments.

(2) The Company
Number of employees
293(As of March 31, 2024)
Average annual salary (gross)
JPY 7,987,305(As of March 31, 2024)
Number of employees
70
66
136
157
293

Average age
37 years 8 months old

Average service length
12 years 5 months

Operating segment
Facilities Management
Merchandise Sales
Segment total
Corporate
Total
Notes:
1) Average annual salary (gross) includes extra wages and bonuses.
2) The number of employees under “Corporate” refers to employees working for administrative departments who cannot be classified
into specific operating segments.

(3) Relationship with labor union
There are currently no unions in the Company or the Group.

-7-(4) Ratio of female managers, male employees who took childcare leave, and wage differences between male andfemale employees[The Company]
As of March
31, 2024

Fiscal year ended March 31, 2024

Ratio of male employees who took
Wage differences between male and female employees
childcare leave
Permanent
Fixed-term
Permanent
Fixed-term
All employees
employees
employees
employees
employees
38.8%
88.9%
84.7%
87.2%
48.2%
Note: Calculated by the provisions of the “Law on the Promotion of the Active Role of Women in Professional Life” (Law No. 64,2015).
Ratio of female
managers[Consolidated subsidiaries]
As of March
31, 2024
Company name

Ratio offemalemanagers

Fiscal year ended March 31, 2024
Ratio of male employees who tookchildcare leave
All
Permanent Fixed-term
employees employees
employees-

Wage differences between male andfemale employees
All
Permanent Fixed-term
employees
employees
employees
72.2%
76.0%
72.0%

Tokyo Airport Restaurant
23.3%
Co., Ltd.
(Note 2)
(Note 2)
(Note 2)
Cosmo Enterprise Co.,
0.0%
0.0%
72.7%
79.5%
92.5%
Ltd.
(Note 2)
Japan Airport Logitem
25.0%
70.0%
96.4%
86.6%
Co., Ltd.
(Note 2)
(Note 2)
(Note 2)
Japan Airport Techno Co.,
76.4%
83.9%
77.6%
Ltd.
(Note 2)
(Note 2)
(Note 2)
(Note 2)
Haneda Airport Enterprise
75.5%
83.3%
83.1%
75.9%
Co., Ltd.
(Note 3)(Note 3)(Note 3)
Haneda Airport Security
14.3%
96.1%
92.5%
Co., Ltd.
(Note 3)(Note 3)(Note 3)(Note 4)
Notes:
1) Calculated by the provisions of the “Law on the Promotion of the Active Role of Women in Professional Life” (Law No. 64,2015).
2) This information is omitted because the Company is not subject to disclosure requirements under the provisions of the “Law on
Promoting the Advancement of Women in Employment” (Law No. 64, 2015) and the “Law on the Welfare of Workers Who Take
Care of Children or Other Family Members, Including Childcare and Family Care Leave” (Law No. 76, 1991).
3) There are no male employees who are eligible to take childcare leave.
4) This information is omitted because the difference in wages between men and women cannot be calculated because the workers are
only of the same sex.

-8-

Item 2. Business Overview
1. Management Policy, Business Environment, and Issues to be Addressed
The following description contains forward-looking statements that the Company judged as of the filing date of thisAnnual Securities Report.
(1) Management Policy, and Management Strategy
As a company that constructs, manages, and operates passenger terminals and other facilities at Haneda Airport, thehub of the domestic air transportation network, our basic management philosophy is to “harmonize public interest andcorporate interest.”
Based on this philosophy, we will continue to fulfill our social responsibilities by achieving absolute safety in passenger
terminals, operating passenger terminals in a customer-oriented manner, and ensuring stable and efficient passenger
terminal operations.
In addition, to continuously increase the corporate value of the entire Group, we will further enhance the convenience,
comfort, and functionality of passenger terminals through strategic and appropriate investment and asset management,
and accurately respond to the increasing sophistication and diversity of customer needs, while striving to provide
appropriate returns to airlines, airport users, business partners, shareholders, and other stakeholders. Our fundamental
management policy is to provide appropriate returns to our stakeholders, including airlines, airport users, business partners,
and shareholders.
In our management strategy, we position sustainability as the core of our strategic promotion and pursue the realizationof a sustainable society and the sustainable growth of our Group under our “Basic Sustainability Policy.”(2) Target Indicators for Judging the Achievement of Management Objectives
In the medium-term business plan for fiscal years 2022 to 2025, the Group has set the following objective indicators.
［Consolidated net profit]
In the fiscal year 2025, we will ensure that earnings per share will exceed the fiscal year 2020 target in the previous
medium-term business plan, considering the dilution from the capital increase in March 2021.
［Cost Reduction Measures]
The Company will curb cost rebound by drastically reviewing terminal operations such as the COVID-19 pandemic
and will generate an amount equivalent to 10% of the FY2020 operating profit target of the previous medium-termbusiness plan of 25 billion yen through cost reduction as a target for improving efficiency and productivity.
［ROA (EBITDA)
The Company will continue to use the latest average of the SKYTRAX Top 10 airports as a reference value, considering
the characteristics of its business, which includes owning passenger terminals and parking lots and improving facilities
as it develops its business.
［Capital Adequacy Ratio]
Although the capital adequacy ratio declined due to the business environment of the COVID-19 pandemic, we willcontinue to aim for a recovery of 40% or more to maintain our credit rating (A+) and stabilize our financial base as soon
as possible.
［Dividend Payout Ratio]
The Company regards the return of profits to shareholders as an important issue and has a basic policy of maintaining
stable dividends while securing internal reserves in consideration of major investments and so on. From the perspectiveof emphasizing shareholder returns based on capital accumulation and business performance, the Company will use the“dividend payout ratio” as an indicator and aim for a dividend payout ratio of 30% or more.
［SKYTRAX Evaluation Ranking]Aiming to win the World’s Best Airports TOP 3 and achieve even higher quality and efficiency in operations.

-9-Indicators and targets are as follows.
Classification
Profitability (Total)
Profitability

Indicator
Consolidated net profit
Cost Reduction Measures

Efficiency
Stability
Shareholder returns
Airport Rating

ROA (EBITDA) Ratio
Capital Adequacy Ratio
Dividend Payout Ratio
SKYTRAX Evaluation Ranking

Target for FY2025
20 billion yen or more
2.5 billion yen (10% of the 25-billion-yen operating profit target in theprevious medium-term business plan)
12% or more
Target recovery to 40% range
30% or more
World’s Best Airports TOP3

The current medium-term management plan sets the target at net profit attributable to owners of the parent at 16 billion
yen or more. This assumes that passenger volume will recover to the pre-COVID-19 plan level in FY2025.
In light of changes in the external environment, including the status of recovery in passenger volume and a change inthe completion date of the new satellite construction on the north side of Terminal 1, which was scheduled for FY2025,
we have revised the target.
In addition to the downward revision of the passenger volume forecast for both domestic and international flights, theincrease in labor costs and various expenses due to soaring prices will have a significant impact on profits. Conversely,
our revenue and expense targets have been revised upward by 4 billion yen for operating profit and 4 billion yen for net
profit, reflecting favorable merchandise sales and an increase in rent income and other revenues from the renewal ofcommercial areas and the attraction of office space.
In light of the aforementioned changes, the consolidated net profit target for FY2025 has been revised from [16 billion
yen or more] to [20 billion yen or more].
(3) Business Environment and Issues to be Addressed
In March 2020, Haneda Airport saw an approximate 1.4 times increase in international departures and arrivals as partof efforts to enhance the functions of airports in the Tokyo metropolitan area. Our group has been working to improve
facilities to accommodate this increased volume of departures and arrivals. Despite the significant decline in airline
demand due to the impact of the COVID-19 pandemic, international passenger volume recovered in the current fiscal
year following the lifting of waterfront measures, resulting in a record high in earnings driven by robust inbound demand.
As of the end of the consolidated fiscal year under review, Haneda Airport’s international routes were not yet served byflights to China and Europe. However, the number of flights to and from Haneda Airport is expected to increase in stages
toward the level achieved after the expansion of arrival and departure slots.
Conversely, the swift rebound in passenger traffic has given rise to a dearth of laborers across the aviation sector. Ourgroup has been working with the government and airlines to streamline the security checkpoint process and normalize
operations at directly managed stores. Furthermore, terminal operating costs have risen due to higher prices and wages,
and the ongoing depreciation of the yen has impacted our business performance in terms of both revenue and expenses.
In light of these circumstances, we must achieve the profit targets for FY2025 as outlined in the medium-term
management plan, “To Be a World Best Airport 2025.” In line with our “Toward Advanced Airports 2030 that are Friendly
to People and the Environment” strategy, we have made sustainability the core of our business plan. Our goals are to growour airport business, establish a foundation for renewed growth, expand our revenue base, and strengthen our managementfoundation. We are pursuing growth in our airport business, establishing a foundation for renewed growth, expanding ourrevenue base, and strengthening our management foundation.
Regarding sustainability, we have established KPIs (Key Performance Indicators) and targets for each material issue
based on our Mid-Term Sustainability Plan. We are working across the entire company to resolve material issues bymanaging progress. In May of this year, we released new information on our nature-related initiatives by therecommendations of the Task Force on Nature-related Financial Disclosure (TNFD). We will continue to pursue
enhancements to our sustainability management practices and the implementation of targeted measures.
In response to challenges such as labor shortages and rising prices, we will continue to utilize robots and othertechnologies to achieve both high quality and increased profits. We will also review operations to curb increases inmaintenance and management costs while attracting more office space and increasing rents and other revenues.
Furthermore, we will enhance the functionality of the airport infrastructure to meet the government target of 60 million
foreign visitors to Japan by 2030. As part of our ongoing efforts, we will continue to pursue the construction of aconnection between the northern satellite of Terminal 2 and the main building, as well as a satellite on the northern sideof Terminal 1. This is in anticipation of future growth in airline demand and the goal of further enhancing passenger
convenience. The new Terminal 1 North Satellite will employ a hybrid wood/steel structure and wood materials to reduce
the environmental impact throughout the building’s life cycle. It will also aim to obtain ZEB-oriented certification, thereby
contributing to the decarbonization of the airport. (ZEB stands for Net Zero Energy Building. A ZEB-oriented building
reduces annual primary energy consumption by 30% or more while maintaining a comfortable terminal facility
environment.)- 10 -

In terms of sales, duty-free stores are experiencing robust performance due to the weak yen and an uptick in inboundtravel. However, there is a potential for unit purchase prices to soften in the future, influenced by shifts in exchange rates
and broader market dynamics. Furthermore, we will continue to renovate stores in duty-free areas and implement
measures to improve purchase rates. Additionally, we will expand the range of products offered at reservation sales andvirtual boutiques in Terminal 2 International Flights, where the area of duty-free stores is limited compared to Terminal
3. Additionally, we will implement RFID and automate warehouse operations to reduce congestion at general duty-freestores and improve the efficiency of store and warehouse operations. Furthermore, to respond to changing consumer
trends, we will enhance our one-to-one marketing strategy and gain deeper insights into customer needs through theintroduction of the “HANEDA Point” feature in the official Haneda Airport application and other channels.
Moreover, to diversify its revenue streams and reduce reliance on passenger traffic, the EC business has been enhancing
its infrastructure by developing a new core system for its directly managed EC site. In May of this year, we undertook arenewal of the domestic e-commerce site, HANEDA Shopping, to increase earnings. Furthermore, we intend to enhance
our profitability by capitalizing on Haneda’s assets, network, and expertise in airport operations, as well as conducting
research and developing new business opportunities.
To provide a solid foundation for these efforts, we will continue to expand our workforce, enhance compensation, anddiversify our human resources to meet the growing demand for air travel. Furthermore, the “Plus One Promotion,” aninner branding initiative, will foster a corporate culture that encourages independent thinking and problem-solving. In the
DX area, we are pursuing two distinct strategies: an “offensive DX” strategy to drive business transformation and a“defensive DX” strategy to enhance the efficiency of existing operations. The “offensive DX” strategy aims to enhance
airport operations and services and facilitate data-driven management by consolidating and utilizing all available
information within Haneda Airport in a centralized database. In the “defensive DX” strategy, we are working to enhance
productivity by optimizing core operational systems and reviewing business processes with a focus on digital utilization.
To fulfill our responsibilities as an airport functional facility operator that constructs, manages, and operates passenger
terminals at Haneda Airport by the Airport Law, the Group will continue to work with the Ministry of Land, Infrastructure,
Transport and Tourism, airlines, and other related parties, and while drawing on the lessons learned from the COVID-19
pandemic, the Group will work together to respond decisively to the recovery in demand. Furthermore, we will endeavor
to accomplish the objectives outlined in our medium-term management plan and enhance capital profitability to achieve
management that is mindful of the cost of capital and stock price, as required of listed companies by the Tokyo Stock
Exchange. We will strive to improve convenience, comfort, and functionality, establish a customer-first philosophy andabsolute safety, and increase our corporate value by contributing to the continuous creation of value at Haneda Airport
and the development of air transportation.

- 11 -

2. Sustainability
The Group’s approach to sustainability and its initiatives are as follows. Forward-looking statements are based on theGroup’s assessment as of the end of the current fiscal year.
(1) Governance(Sustainability in general)
The Group is fully aware of its social role as a private company responsible for the construction, management, andoperation of highly public passenger terminals, and aims to manage its operations in harmony between the business andthe society. To achieve our goal of developing an advanced airport that is environmentally responsible and customerfriendly, we have made sustainability the foundation of our strategy and established a governance structure to ensure theconsistent implementation of ESG-related initiatives and their continued effectiveness.
The Sustainability Committee, chaired by the President and COO, and the Sustainability Management Office, which
reports directly to the President and COO, collaborate with each department to develop sustainability plans and oversee
their implementation. In developing the plan, we seek input from external sources, including dialogue with external
experts who have specialized perspectives on sustainability.
The Sustainability Committee meets twice a year to review the progress of initiatives on key issues such as climatechange, natural capital, and human resource development. In addition to monitoring progress, the Committee also
formulates policies and plans to promote sustainability, materiality (key issues), and KPIs (key performance indicators).
These are defined in the Mid-Term Sustainability Plan. The Board of Directors convenes semi-annually to deliberate andreview the materiality and KPIs (key performance indicators) outlined in the mid-term sustainability plan, as well as
needed. The Committee’s deliberations are reported to and decided by the Board of Directors, after deliberation by the
Executive Committee, based on the relationship and consistency with management strategies.
We are building a governance structure for sustainability through top management leadership, the establishment ofspecialized departments, and collaboration with external experts.
Figure 1: Overview of Sustainability Promotion System- 12 -

(2) Strategies(Sustainability in general)
We have developed a mid-term sustainability plan (released in May 2023) and are developing the following strategies:(Details) https://www.tokyo-airport-bldg.co.jp/en/sustainability/medium_term_plan/(a) Formulation of basic sustainability policy
Concerning our stakeholders, including customers, shareholders, employees, local communities, and partners, wehave established a policy to promote sustainable business practices while contributing to economic and social
development.
(b) Materiality Identification
We have identified eight materialities in line with our medium-term business plan. In identifying them,
1) Social and business issues that may affect our business in the medium to long term, based on a list of key issues
from industry associations (ACI) and international guidelines (GRI, SASB, etc.) and our business strategy.
2) The evaluation was based on two axes: 1) importance to the Company’s business (corporate interest) and 2)
importance to society (public interest),
3) External expectations and requirements are reflected through dialogue with external experts.
(c) Formulating initiatives and KPIs
See the “Metrics and Goals” section.
(Climate change)
While climate change, such as the frequent occurrence of extreme weather events, has a significant impact on ourGroup, we also have an impact on the environment through the emission of many greenhouse gases (GHGs), such as
electricity consumption in terminal operations. In September 2022, we endorsed the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD), and in May 2023, we disclosed information based on the TCFD
recommendations.
(Details) Disclosure based on TCFD recommendations (updated May 2024):(https://www.tokyo-airport-bldg.co.jp/files/en/ir/000014843.pdf)

To assess the impact of climate change on the Group’s operations, the following two scenarios (“1.5°C scenario” and“4.0°C scenario”) were used in the analysis. The scenarios are based on those published by the International Energy
Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC).
Table 1: Overview of Scenario Analysis
Title

Scenario
overview

Worldview

1.5°C scenario
 As a result of drastic measures having been taken
effectively, a decarbonized society is achieved,
limiting the rise in the global temperature to 1.5°C
from the pre-industrial levels.
 Major risks that turn into reality include those
associated with the transition to a decarbonizedsociety.
 As a result of carbon pricing and regulations on therate of SAF usage by airline operators, the aviation(including the airport) industry is required to takeappropriate measures such as carbon offsetting andinvestments in renewable energy and energy
saving.
 The aviation industry may be shifting to alternativetransportation means. However, as the use of SAF
becomes more widespread, airport operators andtheir supply chains gradually succeed in reducing
GHG emissions.

4.0°C scenario
 As a result of additional measures being not taken,
the average global temperature will rise further byapproximately 4°C compared to the pre-industrial
levels.
 Major risks that turn into reality include physicalrisks arising from climate change.
 The government’s policies and regulations toencourage the shift to a low-carbon society have
only a limited effect.
 As climate change intensifies, changes in climate
patterns, rising sea levels, and increasingly severe
and frequent extreme weather events exert adverse
impacts on airport operations. This makes supplychain risk management and BCP reviews more
important.

The Group’s “Facility Management” and “Merchandise Sales and Food & Beverage” (a category that combines the“Merchandise Sales” and “Food & Beverage” businesses) were the subject of the analysis, and risks and opportunities
were identified, impact assessed, and measures to address the risks were defined based on the two scenarios describedabove. The table below shows the time frame and impact of the assessment of climate-related risks and opportunities.
- 13 -

Table 2: Time horizon and impact in assessing climate-related risks and opportunities
Time frames

Level of impact

Short-term
Medium-termLong-term
Minor
MediumMajor

up to FY2025 (Medium-term Management Plan Period)
up to FY2030 (Advanced human and environmentally friendly airports up to FY2030)
up to FY2050 (Until the time of achieving net zero)
Less than 100 million yen per year
More than 100 million yen to less than 1 billion yen per year
More than 1 billion yen per year

Table 3: Risks, opportunities, and impacts of climate change

Risk Type /Type of Opportunity

Transition RiskGHG
Emission
Reduction
Measures(Policy andlaw/technology)Others(Market/Rep
utation)Chronic

Physical
risks
Acute

Segment
Merchandise
Facilities Sales/Fo
od &Beverage

Summary

Increased terminal operating costs andraw material procurement andlogistics costs associated with theintroduction of carbon pricing (Note)
Increased costs due to climate change
regulations (e.g., increased
construction costs due toenvironmental regulations)
Increased costs due to climate changerelated laws and regulations (e.g.,
resource recycling of plastics andother resources, natural capitalsourcing, etc.)
Increased investment costs for climate
protection measures due to theintroduction of renewable and newenergy sources, etc.

✓

✓

✓

✓

✓

✓

Slower growth in airport passenger
traffic due to policies that negatively
impact airline demand✓✓

Loss of reputation with tenants,
partners, customers, suppliers, andemployees due to delays inenvironmental compliance✓✓Impact of Sea Level Rise on Airport
Access Traffic✓✓

Impact of changing climate patterns
on infectious disease outbreaks, etc.

✓✓

Impact of intensification andfrequency of extreme weather eventson the number of users✓✓

Supply chain disruptions due to more
severe and frequent extreme weather
eventsDamage to facilities, flooding, etc.
due to severe and frequent extreme
weather events- 14 -

✓

✓

✓

Time
Frame

Shorttomediu
m-termShorttolongterm
Shorttomediu
m-termShorttomediu
m-termShorttolongterm
Shorttomediu
m-termMediu
m- to
longterm
Longterm
Shorttomediu
m-termShorttomediu
m-termMediu
m- to
longterm

Most
Relevant
Scenarios

LevelofImpact

1.5°C

Major

1.5°C

Major

1.5°C

Mediu
m

1.5°C
/4.0°C

Major

1.5°C

Mediu
m

1.5°C
/4.0°C

Mediu
m

4°C

Minor

4°C

Major

4°C

Mediu
m

4°C

Mediu
m

4°C

Major

Risk
Type /
Type ofOpportunity

Summary

GHG
Emission
Reduction
Measures(Energysources)

OpportunitiesOthers(Resource
efficiency/
Products andservices/Mar
kets)

Segment
Merchandise
Facilities Sales/Fo
od &Beverage

Segment

Reduced costs as a result of a highly
efficient use of energy and diffusionof new technologies✓

Contributions to decarbonization andsecuring of new revenue sources✓

Improved brand value throughdecarbonization initiatives✓

Use of policy support for low-carbon
entities✓

Establishment of a recycling systemcentered on JAT

✓

✓

Time
Frame

Most
Relevant
Scenarios

LevelofImpactLongterm

1.5°C

Mediu
m

1.5°C
/4.0°C

Mediu
m

1.5°C

Major

1.5°C

Mediu
m

1.5°C
/4.0°C

Mediu
m

Mediu
m- to
longterm
Mediu
m- to
longterm
Mediu
m- to
longterm
Shorttomediu
m-termStrengthening the airport’s resilience
Mediu
1.5°C
Mediu
in collaboration with stakeholders and✓m-term
/4.0°Cmlocal communities
Note: The following assumptions have been made in estimating carbon pricing based on projected emissions in 2030:
Emissions: 57,000 t-CO2 (2030 time point emissions)
Carbon price: 21,000 yen (IEA WEO2023 1.5°C scenario (NZE) at 140 USD/t-CO2 at 2030 x 150 yen per dollar)
Impact: 57,000 x 21,000 = approx. 1.2 billion yen
Physicalrisks

Table 4: Countermeasures (Some excerpts)
Type of Risks/Opportunities

Transition
risk-related

GHG Emission
Reduction
Measures

OthersPhysical risk-related

Summary
Energy-saving measures including switching to LED lighting, renewal of air
conditioning equipment, and adoption of AI air conditioning
Introduction of renewable energy sources including mega-solar power, review of powersource composition, and promotion of efficient use of heat sources
Improvement of environmentally friendly performance by transforming existing
facilities into net-zero-energy buildings (ZEBs), the introduction of wooden structures
and wooden interior decorations to the airport buildings, and using Radi-cool, a radiantcooling material, etc.
Investigation and exploration for the use of new energies
Effective use of resources (e.g., provision of materials and equipment from Haneda
Airport to regional airports and other commercially partnered airports) andcommercialization of waste reduction techniques (e.g., collection of waste oil and use of
the oil as biofuel)Strengthening of response to the Tokyo International Airport A2-BCP, Establishment ofa BCP structure, and implementation of regular drills
Thorough measures against infectious diseases; non-contact sales using robots anddigital technologies
Optimization of procurement, production, and logistics as a whole, including
elimination of supply chain redundancy- 15 -

(Natural capital)
As an airport terminal that serves 80 million passengers annually, we utilize and procure a multitude of resources,
including construction materials, plastics, and water. Concurrently, we generate waste, such as construction waste, foodresidues, and collected garbage. To achieve our goal of becoming an advanced airport that is friendly to both people andthe environment, we have identified natural capital-related initiatives as a key management issue. We are currently
evaluating and analyzing the recommendations of the Task Force on Nature-related Financial Disclosures (TNFD). In
support of these recommendations, we are disclosing the following information regarding the TNFD recommendations.
To ascertain the relationship between the Group’s operations and the natural environment, an analysis was conductedusing the LEAP approach. This approach enables a systematic assessment of nature-related risks and opportunities on ascientific basis.
(Details) Disclosure regarding TNFD recommendations:(https://www.tokyo-airport-bldg.co.jp/files/en/ir/000014848.pdf)

Figure 1: Schematic Diagram of the JAT Group’s Value Chain (Relationships with the Natural Environment)

Table 1: Assessment of Relationships with the Natural Environment in Our Value Chain (Heat Map)

- 16 -

Note: The thicker the color, the stronger the relationship (dependencies and impacts) with the environment. Going forward, we areconsidering assessing dependencies and impacts for each case in the future.

[Facility management]
In 2023, Haneda Airport had about 400,000 aircraft movements and some 80 million passengers used the airport’s
passenger terminals. For our direct operations, we consume electric power and other energy sources to maintain the
comfortable space in the facilities, thus generating CO2 emissions. For the movement of aircraft and passengers in thedownstream processes, energy use entails GHG emissions and other types of air pollution.
The terminal buildings we manage and operate (direct operations) and the movement of passengers in the downstream
processes entail the generation of waste by some 80 million users. We dispose of such waste, the amount of which accounts
for around 40% of the total waste generated in the Haneda Airport area. Thus, such waste generation and disposal havesome measure of impact on the environment.
Japan’s domestic natural environment (air, water quality and quantity, and ecosystem condition) is in a favorable statecompared with the global standard. Because of their intrinsic nature, our airport facilities have some measure ofenvironmental impact around Haneda Airport associated with noise pollution and light pollution due to lighting at night.
Annual water consumption at the three terminal buildings in Haneda Airport exceeds 700,000m3, which accounts forsome 50% of annual total water consumption in the Haneda Airport area. Such water use entails certain degrees ofdependencies and impacts.
[Merchandise sales, and food and beverage operation]
The merchandise, food materials, and processed food products that we manage come in great variety. The production,
manufacturing, and processing of raw materials for them entail certain degrees of dependencies and impacts on water use,land use, air pollution, and the like.
We generate certain volumes of disposable containers and packing materials as waste from our merchandise sales, andfood and beverage businesses.
As noted above, we have developed a heat map on to what extent the direct operations and upstream and downstream
processes of our business activity are related to nature in terms of dependencies and impacts, based on currently available
information. With this map, we have identified and assessed important areas. Given the findings of this assessment, wehave identified the nature-related risks and opportunities for the business of the JAT Group. To this end, we haveenvisioned responses toward a nature-positive society and physical damage resulting from nature degradation andassociated losses of ecosystem services. Then we have identified three directions for our strategy on nature-related risks
and opportunities. Going forward, we will make a deeper analysis of risks and opportunities. At the same time, we will
collaborate with many stakeholders to develop and implement measures to implement that strategy as a key management
issue.
Table 2: Three Strategic Directions (Pillars)
Our Strategy on Nature-related Risks and Opportunities

Realizing an Eco Airport

Under the relevant policy and decarbonization plan of the central government, we will takemeasures to reduce the impact of our airport operations on the global and local environments
in cooperation with the stakeholders concerned.

Establishing a circular economy

We will work to make the entire airport more like a circular economy by reducing the amountof waste that is generated and disposed of in the airport through the promotion of recycling
and reuse and the resultant reduction of the amount of landfill.

Promoting sustainable procurement

We will work to reduce the impact of our supply chain as a whole on the natural environment.
To this end, we will give more consideration to the environment and human rights in the
manufacturing and processing of raw materials in our merchandise sales and food andbeverage operations.

- 17 -

(Human capital and diversity)[Fundamental Approach to Human Capital]
Haneda Airport (Tokyo International Airport), which serves as our group’s business base, is the gateway to Japan’sskies, facilitating the movement of people, industry, and culture. To ensure continued growth and advancement,enhancements to the terminal functions are necessary to accommodate the 60 million foreign visitors to Japan.
Against this backdrop, one of the Group’s medium-term management strategies, “Enhance the management base,” calls
for the “Transform the workforce into a group of true professionals and maximize organizational strength.” In our midterm sustainability plan, we have identified two key areas of focus: “Human resource development” and “Promotion of
DEI (Diversity, Equity, and Inclusion).” We are actively pursuing these initiatives.
We recognize that our most valuable asset (human and intellectual capital) is our human resources, who possess a highlevel of expertise and knowledge in all aspects of airport operations and who continue to demonstrate a pioneering spirit
in the ever-changing airline industry. We are confident that our long-term vision of becoming a leading airport company,“To Be a World’s Best Airport,” will be achieved through the strength of our human resources.
[Basic Approach to Human Resource Strategies]
In “Enhance the earnings base,” one of the pillars of the medium-term management strategy, we aim to “Growth of
airport business” as a growth driver, “Establish a foundation for regrowth” by promoting reform and innovation based on
the COVID-19 disaster, and “Expansion of earnings base” by developing businesses in new areas. To achieve these goals,
we are pursuing the following human resource strategies:(a) Recruitment and training of human resources
In addition to requiring a wider range of expertise and technology than ever before, the realization of our management
strategy requires human resources capable of strengthening airport functions and expanding business into new areas
through new ideas and collaboration with different industries.
In line with this policy, we are recruiting new graduates with expertise in fields such as architecture, science, andengineering, as well as overseas human resources. Furthermore, we employ mid-career professionals with diverse
backgrounds and skill sets to enhance the diversity of our core human resources.
In our training system, we have transitioned from a uniform training approach for all employees to a more specialized
and selective education and training model. This includes the introduction of a system that supports autonomous learning,such as a hand-up system program, to enhance the effectiveness of our training initiatives.
Furthermore, as part of our efforts to reform employee awareness and behavior, we are developing the “Plus One
Promotion” throughout the Group. This initiative aims to enhance work engagement by considering new improvements
and changes in current business operations. Furthermore, we are expanding the number of employees participating inexternal secondment opportunities and industry-academia collaborative projects, which provide valuable opportunities
for knowledge exchange and the acquisition of new ideas.

- 18 -

(b) Improvement of the internal workplace environment
Our business is supported by a diverse team of professionals from across Japan and the globe. To guarantee that ourcustomers from all over the globe can utilize our services with ease and security, it is imperative to cultivate a highly
inclusive organizational culture where every employee embraces diverse cultures and values and respects one another.
Furthermore, as the entire Group continues to globalize and expand its business, it is essential to foster an environmentthat recognizes and encourages diversity and mutual growth.
In line with this policy, we are working to create an internal environment where diverse human resources can play anactive role and feel comfortable and fulfilled in their work. We are maintaining a high ratio of female managers,
promoting DEI such as the employment of foreigners and persons with disabilities, and encouraging activities by young
employees to reform the way they work.
(c) Retain Personnel and Increase Productivity
To achieve our management strategy, we will allocate personnel to new areas, including the operation of R&D basesin different industries (terminal.0), knowledge businesses, and industry-industry-academia collaboration projects. In
addition to these personnel acquisition strategies, we will expand our workforce through recruitment and enhancecompensation for employees affected by the COVID-19 disaster. We will also pursue the realization of our management
strategy with an efficient personnel structure by improving productivity through enhanced capabilities, engagement, andefficiency through DX and other measures.
By conducting employee surveys and other assessments, we aim to manage the impact of human resource
development and internal environment improvement measures in a PDCA cycle. Our goal is to create a virtuous cycle
where human investment leads to management results, such as increased revenue and profit, and expansion of new
business areas through enhanced human productivity.

(3) Risk management(Sustainability in general)
As a company that builds, manages, and operates highly public passenger terminals, we recognize that ensuringbusiness continuity is our social mission and that in an uncertain society where new risks are emerging, understanding
the risks surrounding our business and taking countermeasures is an important issue in ensuring organizational resilience.
To enhance the sophistication of risk management systems throughout the Group, we established the Risk Management
Committee, which is chaired by the President and COO and consists of all executive officers from the Vice President level
down. The Committee identifies risks that are considered to be of high importance (priority risks) and the responses tothem and has a system in place to repeatedly review the status of the responses and verify their effectiveness.
Sustainability-related risks, including climate change and human capital, that the Sustainability Committee deems tohave a material impact on our business and performance are integrated into the Group-wide risk management system aspriority risks and managed by the Risk Management Committee.
The deliberations of the Risk Management Committee are reported to the Board of Directors as appropriate, and risk
management is overseen by the Risk Management Committee.

- 19 -

(4) Metrics and Goals(Sustainability in general)In the Mid-Term Sustainability Plan, we set indicators and targets for each materiality in the three areas of environment,
society and people, and governance, and disclosed 27 items.
(Details) Mid-Term Sustainability Plan:(https://www.tokyo-airport-bldg.co.jp/en/sustainability/medium_term_plan/)(Climate change)
We have set long-term targets to reduce Scope 1 and Scope 2 GHG emissions (see note) by 46% from 2013 levels by
2030 and to achieve carbon neutrality by 2050.
［Measures under Consideration］

CO2 emission (Scope1 , Scope2 ) reduction targets
12
11

106,000 tonnes

10
9

8

vs. 2013 level-46%

757,000 tonnes

6
5

4
3
2

Net zero

1
0

2013

2030

2050

(Actual emissions in fiscal 2022): 104,851t-CO₂
Note:1) Scope: CO2 emissions of our Group within Haneda Airport(excluding emissions from Group-owned vehicles within Haneda Airport)
2) Scope of emissions: CO2 emissions from energy consumed internally as a result of business operations and non-energy-derived CO2
from waste incineration.
To align the target values with the “Tokyo International Airport Decarbonization Promotion Plan” by the East Japan Civil Aviation
Bureau of the Ministry of Land, Infrastructure, Transport, and Tourism, the emission factor and target scope have been revised.
Consequently, the base year emissions and the target for FY2030 have been revised upwards.
The long-term objective of achieving net zero by 2050 will encompass all activities within the Minebea Group, including its
operational vehicles, off-airport properties, and other non-energy-derived CO2 emissions.
(Details) Information disclosure based on TCFD recommendations:(https://www.tokyo-airport-bldg.co.jp/files/en/ir/000014843.pdf)(Natural capital)
Regarding materiality, “Effective Use of Limited Resources,” we have established key performance indicators (KPIs)
of a 70% recycling rate for waste from terminals and a 95% recycling rate for food residues from the production of inflight meals in our group’s in-flight meal business. By the TNFD recommendations, we have disclosed the core indicatorsthat are currently available.
(Details) Disclosure regarding TNFD recommendations:(https://www.tokyo-airport-bldg.co.jp/files/en/ir/000014848.pdf)- 20 -

(Human capital and diversity)
Indicators related to the human resources development policy “Think and take on challenges on their own”
Indicator
Target Year
Track Record
Number of participants in industry-academia-industry collaborations and other Improved every FY2023: Total 24
projects
year
Number of employees on external assignment
Improved every FY2023: 21
year
Number of participants in the “Learning room” in-house training academy
Improved every FY2023: Total 114
year
Number of participants in internal knowledge acquisition seminars
Improved every FY2023: Total 370
year
100% IT Passport Acquired
FY2024
31.0% (Cumulative numberof persons obtained: 60)
Number of participants in the “Plus One Promotion” internal branding activities Improved every 252 participants(on a consolidated basis)year
Indicators related to the Internal Environment Improvement Policy “Corporate Culture Enhances Diverse Human Resources”
Indicator
Target Year
Track Record
Maintain 40% of female managers
FY2027
FY2023 result: 38.8%
100% of male employees take childcare leave
FY2027
FY2023 result: 88.9%
Gender pay-gap (all employees)
Reduced every FY2023 result: 84.7%
year
Gender pay-gap (full-time employees) (Note 1)
Reduced every FY2023 result: 87.2%
year
Gender pay-gap (non-regular employees) (Note 2)
Reduced every FY2023 result: 48.2%
year
Employment rate of people with disabilities: 6.6%
FY2025
FY2023 result: 3.6%
Percentage of foreign employees
Results
FY2023 result: 2.4%
management
Percentage of mid-career employees promoted to management roles
Results
FY2023 result: 35.3%
management
Scope of aggregation: The Company (consolidated for certain items)
Notes:
1) Excluding loaned employees
2) Vice President class non-regular employees, counselors, and persons with disabilities are included.

[Factors contributing to the gender wage gap]
The Company does not differentiate between male and female employees about compensation for the same role. The
primary causes of the aforementioned disparity and corresponding measures to address them are outlined below. All
figures are as of the end of the 2023 fiscal year.
(a) Full-time employees
It is not anticipated that the differences in average age (40.2 years for men and 36.6 years for women) and average
length of service (14.7 years for men and 14.1 years for women) will have a significant impact on the wage gap.
Conversely, although the Company has promoted women to management positions and the ratio of women in
management positions is approximately 40%, the ratio at the department manager level is only about 20%. This
discrepancy in promotion to upper management positions contributes to the wage gap. To address this issue, we will
implement a 1-to-1 mentoring program for managers at the section manager level (for both men and women) with senior
executives. This program aims to enhance their development and advancement into upper management positions.
(b) Non-regular employees
Among non-regular workers, almost half (47.3%) of mid-career hires (including those with disabilities) are women,
and there is no wage discrepancy between men and women. Conversely, the majority of department manager-leveltemporary employees and external councilors are male. The disparate gender composition of the two groups contributes
to the wage gap, with wages for the latter group being almost twice those for the former due to the nature of their duties
and the weight of their responsibilities.

- 21 -

(Other related non-financial data)(Millions of yen)
Items
FY2019FY2020
FY2021
FY2022
FY2023
Non-consolidated Number of employees
a
290
264
251
272
293
Consolidated Number of employees (including the
b
5,379
4,031
3,299
3,595
4,565
temporary and dispatched workers) (Note 1)
Consolidated Operating Revenues (Note 2)c249,756
52,572
67,380139,037 276,995
Consolidated Operating profit
d9,892(59,020)(41,255)(10,579)
29,527
Non-consolidated operating revenues per capita
c/a
861
199
268
511
945
Non-consolidated operating profit per capita
d/a
34
(224)
(164)
(39)
101
Consolidated operating revenues per capita
c/b
46
13
20
39
61
Consolidated operating profit per capita
d/b
2
(15)
(13)
(3)
6
Notes:
1) The number of temporary and dispatched employees is calculated based on the number of hours worked during the last month of the
fiscal year.
2) While the “Accounting Standard for Revenue Recognition” and other standards have been applied since the beginning of FY2021,
operating revenues and related indicators calculated under the former standards are presented for comparison over time.

- 22 -

3. Risk Factors
The following is a list of major risks that management recognizes as having the potential to materially affect theconsolidated company’s financial position, results of operations, and cash flows, among other matters, related to thebusiness and accounting conditions described in the Annual Securities Report. However, these are not an exhaustive listof all the risks facing our Group, and other matters not mentioned may also have an impact. Forward-looking statementsin this text are based on the Group’s judgment as of the end of the current consolidated fiscal year.
(1) The Group’s Business BaseThe Group has been designated as an airport facility operator at Haneda Airport by the Airport Law. As a company
that constructs, owns, manages, and operates three passenger terminals and two multi-story parking garages, the Groupleases office space and other facilities, operates stores at the airport for the sale of products (including food products),
and restaurants and manufactures and sells in-flight meals and provides travel services.
At Narita Airport and other hub airports, the Group operates merchandise sales and food and beverage services,
including the production and sale of in-flight meals, as well as real estate leasing and other businesses that make effective
use of company-owned land outside of airports. The Group also leases to other parties’ commercial real estate it owns
outside of airports and applies the experience we have accumulated over the years to develop new businesses both insideand outside airport facilities.
(2) Risk management structure
For the Group, which is responsible for the construction, management, and operation of passenger terminals of highly
public interest, ensuring the continuity of our business is a social mission, and we recognize that in an uncertain society
where new risks are emerging, understanding the risks surrounding our business and taking countermeasures are important
issues in ensuring organizational resilience. We recognize that understanding the risks surrounding our business andtaking countermeasures are important issues for ensuring the resilience of our organization.
For risks that have been evaluated as incredibly important to our business (priority risks), we have a system in place torepeatedly review the status of the response and verify the effectiveness of the management process. This includes the
Risk Management Committee, which is chaired by the President and Representative Director. The Risk Management
Committee provides regular updates on priority risks based on risk information collected across the Company. The
committee’s deliberations are reported to the Board of Directors as needed to ensure effective risk management
supervision.
(3) Group business and other risks
A two-axis evaluation of risk impact and frequency (rate of expansion) identified 18 priority risks, which were thenclassified according to the nature of the risk.
To minimize the business impact of these risks, The Group has diversified its revenue structure by region (Haneda
Airport, Narita Airport, and others) and by segment (facility management, merchandise sales, and food and beverage).
We are also strengthening our efforts in new businesses. In addition, we are striving to strengthen the Group’s corporate
structure and enhance its overall strength by strengthening measures to address the increase in operating expenses in eachbusiness field.
Category
Risk management (external factors)

Business processes (internal factors)
Management infrastructure

Changes in the business environment

Priority risk
Terrorist and subversive activities
Significant deterioration of airport functions (natural disasters/accidents)
Serious infectious disease outbreaks
Inadequate cyber-security measures
Inadequate product management (food safety, excess inventory)
Deficiencies in supply chain management
Insufficient human capital and training, low engagement
Insufficient group governanceLack of DEI promotion and respect for human rights
Violation of financial covenants
Acquisitions without Consent
Addressing Environmental Issues
Responding to changes in behavior and technological innovation
Change in policy (public regulation)
New business, acquisitions, and capital expenditures
Abrupt and large fluctuations in market conditions
Diversification of sales mix (easing airline dependence)
Changes in the International Situation- 23 -

(a) Risk management (external factors), and Business processes (internal factors)
Risk management (external factors) and Business processes (internal factors) are a classification of risks that must be
prevented from materializing in the course of business operations.
The Group is committed to disaster prevention, crime prevention, and accident prevention so that passengers can use
the passenger terminals safely and comfortably, and we always pay the fullest attention to merchandise management
and supply chain management in conducting our business operations. However, the following events could significantly
impact the Group’s business results and financial position.
➢
➢
➢
➢
➢
➢

In case of a terrorist act or subversive activity that causes personal or property damage to the airport or passenger
terminal.
In case of natural disasters or accidents that cause personal or property damage to the airport or passenger terminals,
or flight cancellations.
In case of a significant decrease in airline demand due to the spread of a serious infectious disease.
In case of leakage of personal Information, or serious failure of the information system or communication network
operated by our group.
In case of quality assurance problems such as food poisoning or contamination by foreign substances in restaurants,
or stores, resulting in damage to the corporate image or administrative penalties.
In case of difficulties in obtaining foreign-made materials, disruption of logistics, or deterioration of reputation due
to inappropriate procurement activities.

(b) Management infrastructureManagement infrastructure is a classification of risks that may become risks in themselves if they are not adequately
maintained.
To manage the Group must have appropriate recognition of the high level of safety and public interest of the passenger
terminal business, as well as an understanding of the critical management resources that are the source of the Company’s
corporate value (highly original technology and know-how, knowledge, and information in specific market fields, deep
relationships of trust with business partners cultivated over a long period, high-quality human resources with expertisein specialized fields).
Through its medium-term business plan, the Group is working to promote DX, strengthen its organization, humanresources, and governance, and reinforce its management base through financial strategies. However, the following
events could significantly impact the Group’s business results and financial position.
➢
➢
➢
➢

➢

In case of situations where store operations, introduction of new technologies, or promotion of new businesses are
restricted due to a shortage of human resources, or other reasons.
In case a situation should arise regarding the lack of coordination of information and penetration of head officepolicies between the head office business units and group companies.
In case of situations that may damage the corporate image in terms of ensuring diversity and respect for humanrights, such as lack of personalized and diverse services, forced labor or child labor in supplier products, and so on.
In case the Company violates the financial covenants attached to the syndicated loan agreement concluded withthe financial institutions concerned due to a downgrade of the Company’s credit rating beyond a certain level, anda situation should arise in which the Company loses the benefit of time.
In case of control of the Company’s financial and business policy decisions by an inappropriate person, resulting
in damage to the Company’s corporate value and harm to the interests of the Company and, in turn, to the common
interests of its shareholders.

- 24 -

(c) Changes in the Business Environment
Changes in the business environment are a classification of risks that are expected to materialize due to changes inthe external environment and for which management strategies are required to prevent losses or to expand or transform
opportunities.
The core of the Group’s business is highly dependent on airlines, which are its main leasing partners major customers,
and airline passengers, and the following events could have a significant impact on the Group’s business results andfinancial position.
➢

➢

➢

➢
➢
➢
➢

In case of a situation should arise in which the Group’s reputation among customers and business partners isdamaged or the Group faces difficulty in procuring funds to address environmental issues, or if the Group is
obligated to reduce greenhouse gas (GHG) emissions, create a trading system, or impose charges or other costbearing regulations that are tightened.
In case of a change in passenger behavior that results in a decrease in demand for air travel, or a change inpurchasing methods due to technological innovation that results in a decrease in willingness to purchase at airport
stores.
In case the laws and regulations, systems, or airport management policies about airport building operations arechanged by the government or administrative authorities, which are the establishment and administrators of airports.
(Further progress is being made in the airport management reform being promoted by the Ministry of Land,
Infrastructure, Transport and Tourism (MLIT) with the enactment of the Law Concerning Operation of Airports
under National Management Utilizing Private Sector Capabilities.)If, as a result of investments in new businesses or the implementation of capital expenditures, political instability
in overseas operations or a deviation from the assumed return on investment occurs.
In the event of sudden and drastic changes in market conditions resulting in price increases, sharp fluctuations in
exchange rates, or other disruptions.
In this case, the Group’s dependence on aviation has not been alleviated due to a delay in diversifying its sales mix
when air passengers at Haneda and Narita Airports, its main business areas, declined.
In case of a decrease in demand for international flights due to changes in the international situation, such as
worsening Japan-China relations due to the Taiwan emergency.

[The Impact of the Situation on Russia and Ukraine]
The Russian-Ukrainian conflict has been protracted, and economic sanctions imposed on Russia by Western countries
have caused a slowdown in trade, which has had a significant impact on the global economy. Even before the situation,
there had been concerns about the rapid increase in demand for crude oil and other commodities due to the recovery
from the COVID-19 pandemic, supply chain disruptions, accompanying sharp rises in material prices, inflation risk, andother issues, The recent Russia’s invasion of Ukraine has caused resource and food prices to soar even higher,
semiconductors to be in short supply, and the yen to depreciate in the exchange market.
In the Group’s business, in addition to the impact on aircraft operations between Japan and Europe, there are concerns
about increases in utilities, transportation costs, and food and beverage costs due to higher energy and food prices, aswell as an increase in capital expenditures due to soaring costs of materials. In addition, the amount of investment in the
Khabarovsk International Airport project, in which we participate, is small and will not have a significant impact on ourbusiness performance.

- 25 -

4. Analyses of Consolidated Financial Position, Operating Results, and Cash Flows from the
management’s perspective
A. Overview of Results of Operations(1) Analysis of Consolidated Business Results for FY 2023
During the fiscal year ending March 31, 2024, although some parts were at a standstill, the Japanese economy showeda gradual recovery. In the forthcoming period, it is anticipated that the gradual recovery trend will persist, driven by the
impact of various policy measures and accompanied by an improvement in the situation surrounding labor and income.
However, there is a risk that a downturn in overseas economies, such as the effects of the tightening of monetary policy
around the globe and concerns about the outlook for the Chinese economy, will put downward pressure on the Japanese
economy. Moreover, it is necessary to pay sufficient attention to price increases, the situation surrounding the Middle East
region, and volatility in the financial and capital markets among other factors.
The airline industry continued to see a steady recovery in demand due to the full lifting of restrictions on activities
concerning COVID-19 in May 2023. The number of passengers at Haneda Airport increased by about 15% compared to
FY2022 for domestic flights and recovered to approximately 90% of the level of 2019 (calendar year) before the impactof the COVID-19 pandemic hit. The number of passengers for international flights was slightly less than 3 times that of
FY2022. This is a record number of passengers surpassing the number of passengers in 2019 (calendar year).
Under these circumstances, to achieve the long-term vision, “To Be a World Best Airport,” the JAT Group is steadily
implementing various measures outlined in the Medium-Term Business Plan.
In terms of facilities, we are working together with the Japanese Government and the airline companies to respond to
the rapidly recovering international passenger demand. Such efforts include extending the operating hours of the Terminal
2 international flight facilities which have been put back into service since July 2023. In addition, we have been
undertaking tasks including renovation and seismic retrofitting work in preparation for a major disaster. Moreover, weare steadily pushing forward investment plans for the future including the construction of a connection between thesatellite building on the north side of Terminal 2 and the main terminal building and the construction of the satellite
building on the north side of Terminal 1. In parallel, we are working toward the realization of a carbon-neutral society
through the reduction of energy consumption by increasing the efficiency of air conditioners and switching to LED
lighting throughout the terminal buildings. We are also studying the conversion of airport vehicles to electric vehicles at
Haneda Airport and the utilization of CO2-free hydrogen in collaboration with ENEOS Corporation.
In terms of sales, to capture the strong demand of inbound visitors, in addition to extending the hours of operation of
duty-free stores, we opened “JAPAN MASTERY COLLECTION” in the departure area of Terminal 3 which aims tobecome a luxury brand that contributes to regional revitalization. We are promoting a wide collection of made-in-Japanproducts, including original products, which feature world-class skills and their best from Haneda to the rest of the world.
For domestic flights, we have been actively holding events featuring local products from various regions of Japan among
other initiatives. We opened “Haneda Sanchokukan” in Terminal 1 and will contribute to regional revitalization bycontinuously communicating the charms of each region through promotional booths for regional cooperation.
Furthermore, a new service, “HANEDA Point,” was added to the official Haneda Airport app in March of this year to
improve convenience and satisfaction for the members who signed up on the app.
Outside of Haneda Airport, in line with the recovery in international passenger volume at each of the hub airports, we
resumed operations and renovated our directly managed stores. In addition, we opened the new JAPAN DUTY FREE
Ibaraki Airport Shop in March 2024. At HANEDA INNOVATION CITY, located adjacent to Haneda Airport, we opened“terminal.0 HANEDA” in February 2024, a research and development center that will solve issues at the airport throughcollaboration across different industries. We will continue to work on the creation of business jointly with member
companies and organizations.
In terms of management foundation, in addition to strengthening our recruiting efforts to secure talent, we are also
working to improve the compensation and benefits of our employees to achieve high retention. In addition, through theincrease of literacy concerning digital transformation for all employees, an internal branding project called “Plus One
Promotion”, an industry-academia collaboration project with the University of Tokyo, expansion of recruitment of people
with disabilities, and other initiatives, we aim talents who “Think by oneself and take on challenges” to excel and aim tofoster a corporate culture in which diverse workforce promote each other’s growth. Concerning our sustainability-related
initiatives, in addition to the information disclosure based on the recommendations by the TCFD (Task Force on Climaterelated Financial Disclosures), we are continuing to enhance our communication efforts through initiatives such as theintegrated report issued in November.
As a result of the above, concerning the consolidated financial results for the fiscal year ended March 31, 2024,
operating revenues were ¥217,578 million (an increase of 92.5% year-on-year) due to the increase in operating revenues
across all of the business segments in line with the recovery of passenger volume. Operating expenses increased from theprevious year due to an increase in passenger volume and sales, but the increase in sales was the driving force and as aresult, operating income was ¥29,527 million (compared to an operating loss of ¥10,579 million during the previous year),ordinary income was ¥27,225 million (compared to ordinary loss of ¥12,064 million during the previous year), both of- 26 -

which were record high. And net income attributable to owners of the parent was ¥19,255 million (compared to net loss
attributable to owners of the parent of ¥3,901 million during the previous year).
(Millions of yen)
Operating Results

FY2022(from April 1, 2022
to March 31, 2023)

FY2023(from April 1, 2023
to March 31, 2024)

Year-on-Year (%)

Operating revenues[Facilities Management]

113,050

217,578

92.5

63,28091,73645.0[Merchandise Sales]

41,317111,175

169.1[Food and Beverage]

8,452

14,667

73.5

Operating profit (loss)(10,579)

29,527-

Ordinary profit (loss)(12,064)

27,225-

Net profit (loss) attributable to owners of the parent(3,901)

19,255-

Haneda Airport Passenger Terminal was awarded the world’s highest standard “5-star Airport” rating for the tenthconsecutive year in the “World Airport Star Rating” conducted by SKYTRAX of the United Kingdom. In the “WORLDAIRPORT AWARDS 2024”, we were awarded first place in the “World’s Cleanest Airports” (for the ninth consecutiveyear), “World’s Best Domestic Airports” (for the twelfth consecutive year), and “World’s Best PRM / Accessible Facilities”(for the sixth consecutive year). In addition, Haneda Airport was ranked third in the “Best Airports in Asia,” acomprehensive evaluation of airports in Asia, and fourth in the “World’s Best Airports,” a comprehensive evaluation of
airports.
(Note: PRM stands for “Persons with Reduced Mobility” which means the elderly, a person with disability or injury.)

The JAT Group will continue to strive to improve convenience, comfort, and functionality while establishing absolutesafety at the passenger terminal, which is a social infrastructure, and to contribute to the continuous creation of value at
Haneda Airport and the further growth of air transportation, thereby enhancing our corporate value.
Overview by Segment
The following is a breakdown of earnings (loss) by segment. Note that the figures for operating revenues of each segment
include intersegment sales and the figures for operating profit (loss) are equivalent to those for segment profit (loss).
[Facilities Management](Millions of yen)
Operating Results

FY2022(from April 1, 2022
to March 31, 2023)

FY2023(from April 1, 2023
to March 31, 2024)

Year-on-Year(%)

63,28091,736

Rent revenue

19,852

20,0200.8

Facility user charges revenue

29,32552,436

78.8

Other revenues

14,102

19,279

36.7

2,391

3,126

30.7

Total Operating Revenues

65,672

94,86244.4

Segment profit (loss)(3,133)

17,880-

Sales to external customers

Intersegment sales and transfers

45.0

Rent revenue increased slightly from the previous year primarily due to the increase in rent income on a percentage
basis, although the quarantine space we were renting to the Japanese Government was returned as a result of thetermination of the border control measures.
Revenue from facility user charges increased from the previous year primarily due to the increase in the Passenger
Service Facility Charge (PSFC) driven by the recovery in passenger volume.
Other revenues increased from the previous year primarily due to the increase in paid lounge sales, parking revenue,
and revenue from advertisement within terminal buildings.
On the expense side, the costs for terminal maintenance and management, such as outsourcing and commission andrepair costs have increased in line with the increase in passenger volume and price increases.
As a result, operating revenues from facilities management operations was ¥94,862 million (an increase of 44.4% yearon-year). Operating income for the segment was ¥17,880 million (compared to an operating loss of ¥3,133 million during
the previous year).

- 27 -

[Merchandise Sales](Millions of yen)
Operating Results

FY2022(from April 1, 2022
to March 31, 2023)

FY2023(from April 1, 2023
to March 31, 2024)

Year-on-Year(%)

41,317111,175

169.1

Sales at domestic terminal stores

10,372

13,097

26.3

Sales at international terminal stores

19,47670,039259.6

Other revenues

11,46928,037

144.5

Sales to external customers

892

1,561

74.9

Total Operating Revenues

42,210112,736

167.1

Segment profit

1,640

21,084-

Intersegment sales and transfers

Sales at domestic terminal stores increased from the previous year because of the recovery in domestic passenger
volume.
Sales at international terminal stores increased from the previous year due to the increase in international passenger
volume at Haneda Airport, Narita Airport, and other airports in addition to the rise in unit purchase prices by clients at
duty-free shops driven by depreciation of Japanese yen.
Other revenues increased from the previous year because of the increase in revenue for the wholesaling business serving
international flights at other airports.
As a result, operating revenues from merchandise sales operations was ¥112,736 million (an increase of 167.1% yearon-year) and operating income for the segment was ¥21,084 million (compared to operating income of ¥1,640 million
during the previous year).
[Food and Beverage](Millions of yen)
Operating Results

FY2022(from April 1, 2022
to March 31, 2023)

FY2023(from April 1, 2023
to March 31, 2024)

Year-on-Year
(%)

8,452

14,667

Sales from food and beverage stores

5,489

7,206

31.3

Sales from in-flight meals

2,487

6,179

148.4

475

1,281

169.5

953

722

(24.2)

Total Operating Revenues

9,405

15,38963.6

Segment profit (loss)(1,365)65-

Sales to external customers

Other revenues
Intersegment sales and transfers

73.5

Sales from food and beverage operations increased from the previous year primarily due to the recovery in domestic
passenger volume.
Sales from in-flight meals increased from the previous year due to the recovery in passenger volume of the foreign
carriers at Haneda Airport and Narita Airport.
As a result, operating revenues from food and beverage operations were ¥15,389 million (an increase of 63.6% yearon-year). Despite the impact of curtailed operating hours of restaurants caused by the shortage of labor and the increasein food price and labor cost, among other factors, operating income for the segment was ¥65 million (compared to an
operating loss of ¥1,365 million during the previous year).

- 28 -

(2) Analysis of Consolidated Cash Flows for FY 2023
Cash and cash equivalents at the end of FY2023 decreased by ¥14,845 million compared to the previous fiscal year end
to ¥75,395 million.
The following is a summary of cash flows and the factors behind these flows for FY2023.
[Cash flows from operating activities]
Cash flows from operating activities increased by ¥31,435 million from the previous fiscal year (up 192.5% year-on-year),resulting in a cash inflow of ¥47,761 million.
This was primarily due to the booking of income before income taxes and non-controlling interests (the previous year wasa loss before income taxes and non-controlling interests).
[Cash flows from investing activities]
Concerning cash flows from investing activities, cash outflow increased by ¥32,358 million from the previous fiscal year
(up 304.5% year-on-year), resulting in a cash outflow of ¥42,986 million.
This was primarily due to expenditures for the acquisition of tangible fixed assets and expenditures for the acquisition of
securities.
[Cash flows from financing activities]
Concerning cash flows from financing activities, cash outflow increased by ¥7,008 million from the previous fiscal year
(up 55.4% year-on-year), resulting in a cash outflow of ¥19,649 million.
This was primarily due to cash outflow from the payment of long-term loans payable and payment of dividends.

- 29 -

(3) Production, orders received, and sales
As for production and other results, the Group finds it difficult to present production and orders received for eachsegment.
Therefore, please refer to “3. Description of Business” in “Item 1. Overview of the Company and its Consolidated
Subsidiaries” for the financial results of each segment.
Operating revenues for the current fiscal year were as follows:(Millions of Yen)FY2022(From April 1, 2022
to March 31, 2023)

FY2023(From April 1, 2023
to March 31, 2024)

Year-on-Year(%)

Facilities Management

63,28091,73645.0

Rent revenue

19,852

20,0200.8

Facility user charges revenue

29,32552,436

78.8

Other revenues

14,102

19,27936.7

41,317111,175

169.1

Sales at domestic terminal shops

10,372

13,097

26.3

Sales at international terminal shops

19,47670,039259.6

Other sales

11,46928,037144.5

Food and Beverage

Merchandise Sales

8,452

14,667

73.5

Sales from food and beverage operations

5,489

7,206

31.3

Sales from in-flight meals

2,487

6,179

148.4

1,281

169.5

217,578

92.5

Other sales

475

Total
113,050
Notes:
1) Transactions between segments are eliminated on consolidation.
2) Data on leasing regarding rental revenue in Facilities Management is summarized as follows:(㎡)
FY2022(From April 1, 2022
to March 31, 2023)
970,497(%)
332,856
100.0

Total floor space owned by the Group
Total leasable floor space
Total leased floor space

FY2023(From April 1, 2023
to March 31, 2024)
970,497(%)
332,792
100.0

323,718

97.3

324,519

97.5

158,32847.6

158,359

47.6

General tenants

62,42218.8

62,281

18.7

Used by the Group

102,96630.9

103,877

31.2

Airlines- 30 -

B. Analyses of Consolidated Financial Position, Operating Results and Cash Flows
Forward-looking statements contained herein are based on the judgment of the Group (the Company and its
consolidated subsidiaries) as of the end of the current fiscal year.
(1) Analysis of consolidated financial position[Assets]
Current assets increased by ¥5,768 million from the previous fiscal year's end to ¥120,756 million primarily becauseof the increase in accounts receivable due to the increase in sales of merchandise driven by the recovery in passenger
volume. Fixed assets increased by ¥7,699 million from the previous fiscal year's end to ¥339,667 million primarily due
to capital expenditure.
As a result, total assets increased by ¥13,468 million from the previous fiscal year's end to ¥460,423 million.
[Liabilities]
Total liabilities decreased by ¥11,617 million from the previous fiscal year end to ¥294,386 million because of thedecrease of long-term loans payable for the Company and Tokyo International Air Terminal Corporation (TIAT) due topayment despite the increase in accounts payable driven by the increase in purchases of goods.
[Net assets]
Total net assets increased by ¥25,085 million from the previous fiscal year's end to ¥166,036 million. This is primarily
due to booking net income for the year.
As a result, the equity ratio was 36.5% (compared to 33.6% at the previous fiscal year-end).
(2) Analysis of operating results
The Group’s operating results and sales by segment for the current fiscal year are described in “(1) Analysis ofConsolidated Business Results for FY22” in “A. Overview of Results of Operations”
In its medium-term business plan for fiscal years 2022 to 2025, the Group has set the following indicators and targets
for fiscal year 2025 (the last year of the plan).
Classification
Profitability (overall)Profitability

Indicators
Consolidated net profit
Cost reduction measures

Targets for FY2025
20 billion yen or more
2.5 billion yen (10% of the operating
profit target of 25 billion yen in theprevious medium-term plan)
Efficiency
ROA (EBITDA)
12% or more
Stability
equity ratio
Aim to restore to 40% level
Return to shareholders
Payout ratio
30% or more
Airport rating
SKYTRAX rating
World’s best airport ranking TOP3
For details, please refer to “(2) Target Indicators for Judging the Achievement of Management Objectives” in “1. Management
Policy, Business Environment and Issues to be addressed.”

The progress of each indicator for FY 2023 is as follows.
[Consolidated net profit] [Cost reduction measures]
The consolidated net income for the current fiscal year was 19,255 million yen.
The implementation of cost-reduction measures is progressing well. These measures include a review of operations,the continuation of post-reduction initiatives based on insights gained from the COVID-19 disaster, the utilization ofrobots and other technologies, and the updating of equipment to enhance energy efficiency.
[ROA (EBITDA)]ROA (EBITDA) for the current fiscal year was 12.7%.
[Equity Ratio]
The equity ratio at the end of the current fiscal year was 36.5%.
[Dividend payout ratio]
The dividend payout ratio for the current fiscal year was 32.4%.
[SKYTRAX Evaluation Ranking]In the “WORLD AIRPORT AWARDS 2024” held in March this year, Haneda Airport’s passenger terminal was
ranked 4th in the world in the “World’s Best Airports” category.

- 31 -

In the current fiscal year, revenues in all segments exceeded the previous year’s levels due to an increase inmerchandise sales and facility usage fee revenues. This reflects a recovery in passenger volume and strong inbounddemand. Despite efforts to secure personnel and services in various areas in response to the rapid recovery in demandfollowing the COVID-19 disaster, cost increases were contained, resulting in record highs for both operating income
and ordinary income. In FY2024, we anticipate an uptick in facility maintenance and management costs, driven by the
expansion of service aspects and quality improvement initiatives. Additionally, we expect to see a rise in maintenanceand repair costs, which were previously kept to a minimum to accommodate the needs of the COVID-19 disaster. We
will continue to implement each measure in the medium-term management plan steadily and consistently. Our goal is toachieve the revenue target for FY2025, which has been newly revised, and to improve the airport’s reputation.
(3) Analysis and discussion of cash flows and information on capital resources and liquidity of funds
For an analysis of cash flows, see “(2) Analysis of Consolidated Cash Flows for FY 2023” in “A. Overview ofResults of Operations”
The Company’s capital policy is based on the principle of pursuing an optimal capital structure for the Company interms of financial soundness and capital efficiency, while at the same time seeking an optimal balance between building
internal reserves in preparation for major capital investments in passenger terminal buildings and other facilities andreturning profits to shareholders.
Working capital is provided by our funds, but we have established a term loan with a commitment period andcommitted line agreements with a total limit of 9 billion yen to meet unforeseen contingencies.
The Company raises funds for major capital investments such as passenger terminal buildings through its funds, longterm loans from financial institutions, and corporate bonds. In addition, the Company strives to diversify and stabilize
fund procurement and reduce fund procurement costs by maintaining a rating of single A-plus or higher (by a Japanese
rating agency), and for a portion of borrowings corresponding to capital investments, the Company uses interest rate
swaps and other means to avoid excessive exposure to interest rate fluctuation risk. Among the consolidated
subsidiaries, Tokyo International Air Terminal Corporation (TIAT), a PFI business, is primarily required to ensure thestability and continuity of its business, and therefore, large-scale capital investments such as passenger terminalbuildings are financed by long-term borrowings or subordinated bonds using the project financing method.
In addition, the Group has implemented a cash management system (CMS) to centralize the procurement andmanagement of funds within the Group to efficiently utilize funds and reduce financing costs.
Cash and cash equivalents at the end of the fiscal year were 75,395 million yen, and interest-bearing debt, includingloans, was 228,284 million yen.
(4) Critical accounting policies and estimates
The consolidated and non-consolidated financial statements of the Company have been prepared by accounting
principles generally accepted in Japan. The transactions underlying the preparation of these financial statements areproperly recorded in the accounting records. Write-downs of inventories are calculated and recorded by multiplying thevalue of inventories by the write-down ratio for obsolete goods.
The accounting estimates used in the preparation of the consolidated financial statements and the assumptions, if any,made in making such estimates are significant as described in “(Significant accounting estimates)” in “Notes on theConsolidated Financial Statements” in “A. Consolidated Financial Statements” in “1. Consolidated Financial
Statements, and Others” in “Item 5. Financial Information.”(5) Forecast for FY 2024 (the fiscal year ending March 31, 2025)
In the next fiscal year, passenger volume at both domestic and international flights at Haneda Airport is expected toincrease as its steady recovery continues. Due to further increase and resumption of flights, for the full year, the numberof passengers for international flights is expected to be more than 80% of the planned level, which is after the expansionof arrival and departure slots that took place in March 2020.
Under these circumstances, the JAT Group will steadily capture passenger demand and increase earnings. At the
Terminal 2 international facilities, operations were further expanded starting from the summer timetable at the end of
March this year, and swing operations have begun at some spots, switching between domestic and international flights
depending on the time of day. In addition, in preparation to accommodate future passenger growth and further improve
passenger convenience, we plan to commence service of the connection between the main building and the satellite
building of Terminal 2 at the end of FY2024.
On the other hand, despite a significant increase in the number of international passengers during the current fiscal year,
costs were kept down due to the impact of labor shortages and continued efforts to improve the efficiency of terminal
maintenance, management, and operations. In the next fiscal year, we anticipate higher costs for outsourcing, repairs, andrent, in addition to rising raw material and material prices and continued increases in labor costs.

- 32 -

The expected earnings by segment are as follows.
For the Facility Management business, operating revenue is expected to exceed that of the current fiscal year, mainly
due to an increase in revenue from facility user charges resulting from a recovery in passenger volume, but operating
income is expected to decrease primarily due to higher terminal maintenance and management costs. For the Merchandise
Sales business, both operating revenue and operating income are expected to exceed those of the current fiscal year,
primarily due to an increase in merchandise sales resulting from an increase in the number of passengers on Haneda
international flights. For the Food and Beverage business, both operating revenue and operating income are expected to
exceed those of the current fiscal year due to extended operating hours at our directly managed food and beverage outlets
and increased revenue from in-flight meals.
Based on the above, for the consolidated forecast of FY2024, we forecast operating revenue of ¥253,800 million (up16.6% year-on-year), operating income of ¥27,100 million (down 8.2% year-on-year), ordinary income of ¥24,300 million(down 10.7% year-on-year), and net income attributable to owners of the parent of ¥15,500 million (down 19.5% yearon-year).
Unit
Haneda Airport Domestic flight
Haneda Airport International flight
Haneda Airport (Total)

Million people
Million people
Million people

FY2023(Actual）(Note)
61.13
19.09
80.22

FY2024(Forecast)
65.64
21.48
87.12

Year-on-year
（%）
7.4
12.5
8.6

Operating revenue
Millions of yen
217,578
253,800
16.6
Operating profit
Millions of yen
29,527
27,100(8.2)
Ordinary profit
Millions of yen
27,22524,300(10.7)Net profit attributable to owners of the parent
Millions of yen
19,255
15,500(19.5)
Note: The Company compiled the number of passengers for FY2023 based on preliminary figures released by the East Japan Civil
Aviation Bureau of the Ministry of Land, Infrastructure, Transport and Tourism.

5. Material Agreements
Not applicable.

6. Research and Development Activities
Not applicable.

- 33 -

Item 3. Property, Plant, and Equipment
1. Overview of Capital Investment
The Group’s total capital investment for the current fiscal year was 27,685 million yen, primarily allocated to theconstruction of a satellite on the north side of Terminal 1 and the connection between the satellite and the main buildingon the north side of Terminal 2.

2. Major Facilities
The principal facilities of the Group are as follows.
(1) The Company(As of March 31, 2024)
Book value (Millions of yen)
Name and location

Haneda Airport(Ohta-ku, Tokyo)

Operatingsegment

Facilities
management

Facilities &
equipment

Numberofemployees

Buildings

MachineryandvehiclesLand[squaremeter]

Lease

Others

Total

Terminal 265,350

2,539

[-]

937

16,306

85,13435

Terminal 1

24,617

316

[-]

-

15,15340,08635

P4 parking

3,306

79

[-]

-

256

3,642

-

(2) Subsidiary located in Japan(As of March 31, 2024)
Company

Tokyo
International
Air Terminal
Corporation(TIAT)

Cosmo
EnterpriseCo., Ltd.

Name andlocation

Operatingsegment

Facilities
management
HanedaAirport(Ohta-ku,
Tokyo)
Merchandise
sales

Daiei
Satellite(NaritaCity,
Chiba
Prefecture)

Food
and
beverage

Facilities&
equipment

Book value (Millions of yen)
Buildings

MachineryandvehiclesLand[squaremeter]

Lease

Others

Total

Number of
employees

Terminal 382,429

7,575

[-]

22

29,824

119,850

33

P5 parking

8,283

15

[-]

-

13

8,312

-

Terminal 2

3,191

432

[-]

1

427

4,052

1

Terminal 3
shop
equipment

4,865

-

[-]

-

902

5,768

8

Terminal 2
shop
equipment

1,519

-

[-]

-

173

1,693

2

Food
processing
equipment

792

71

557
[39,352]

24

4

1,451

62
[31]

(3) Subsidiary located in oversea
Equipment of foreign subsidiaries is excluded as immaterial.

- 34 -

Notes:1) “Others” in the book value is the total amount of tools, furniture and fixtures, construction in progress, and leasehold rights.
2) The number in brackets [] indicates the number of temporary workers employed.
3) The Company leases facilities of Terminal 1 and Terminal 2 at Haneda Airport mainly to airlines.
4) The consolidated subsidiary, Tokyo International Air Terminal Corporation (TIAT), leases the facilities of Terminal 3 at Haneda
Airport primarily to airlines.
5) The Company leases land for Terminal 1 facilities, Terminal 2 facilities, and P4 parking facilities at Haneda Airport. The leased areaof Terminal 1 facilities is 97,367 m2 and the annual rent is 1,459 million yen, that of Terminal 2 facilities is 129,601 m2 and theannual rent is 2,862 million yen, and that of P4 parking facilities is 21,716 m2 and the annual rent is 118 million yen.
6) The consolidated subsidiary, TIAT, leases land for Terminal 3 and P5 parking facilities at Haneda Airport. The leased area of Terminal
3 facilities is 124,685 m2, the leased area of P5 parking facilities is 28,715 m2, and the annual rent for Terminal 3 and P5 parking
facilities is ¥2,076 million.
7) In addition to the above, significant equipment leases include the following:[The Company]
Name and location
Haneda Airport(Ohta-ku, Tokyo)

Operating segment
Facilities management

Facilities & equipment
P1 Parking facilities(including land)

Lease Term

Annual rent (million yen)

One-year renewal

436

3. Plans for Capital Investment, and Disposal of Property, Plant, and Equipment
As of the end of the current consolidated fiscal year, the Group’s plans for new construction, renovation, and disposalof major facilities are as follows.
(1) Capital investment[The Company]
Location

Operatingsegment

Ohta-ku,Tokyo

Facilities
management

Facilities & equipment

Estimatedamount toinvestAmountalready paid

Funding
Methods

Plannedstart date

Expected tocomplete

CY2024

CY2026 andthereafter

CY2023

CY2025 andthereafter

Passenger Terminal 1 North
Satellite (New Construction)

41,00013,627

Cash
debt

and

Passenger Terminal 2(Expansion Construction)

23,00014,589

Cash
debt

and

Note: The description of the increased capacity after completion is omitted because it is difficult to calculate reasonably.

(2) Disposal of Property, Plant, and Equipment
There are no plans to sell or dispose of significant equipment, except for the sale or disposal of equipment for recurring
equipment upgrades.

- 35 -

Item 4. Information on the Company
1. Information on the Company’s Share(1) Total number of shares[Total number of shares]
Class
Common shares
Total

Total number of shares authorized to be issued (Shares)
288,000,000
288,000,000[Issued shares]

Class

Number of issued
shares at the endof the fiscal year
(March 31, 2024)(Shares)Number ofissued shares asof the filing date(June 26, 2024)(Shares)Common shares

93,145,400

93,145,400

Total

93,145,400

93,145,400

Name of the stock exchange on
which the Company is listed ornames of authorized financial
instruments firm’s associations

Description

Tokyo Stock Exchange
Prime Market－

The number of shares constituting
one unit is 100 shares.
－(2) Stock acquisition rights[Stock option plans][Rights plan][Other stock acquisition rights]

Not applicable.
Not applicable.
Not applicable.

(3) Exercises of moving strike convertible bonds
Not applicable.
(4) Changes in the number of issued shares, capital stock

Date

Changes in
number ofissued shares(Shares)

Balance of
number ofissued shares(Shares)

Changes incapital stock(Millions ofyen)

Changes inlegal capitalsurplus(Millions ofyen)
17,873
2,763

Balance ofcapital stock(Millions ofyen)

Balance oflegal capitalsurplus(Millions ofyen)
39,183
41,947

March 5, 2021
7,507,900
91,984,400
17,87335,362
March 20, 2021
1,161,000
93,145,400
2,763
38,126
Notes:
1) Issuance of New Shares by Public Offering (Public Offering)
Issue price: 4,966.00, yen Issue value: 4,761.20 yen, Additional paid-in capital: 2,380.60 yen
2) Paid Third-Party Allotment (Third-Party Allotment in connection with the secondary offering of our shares by way of an overallotment)
Issue price: 4,761.20 yen, Paid-in capital: 2,380.60 yen, Underwriter: Nomura Securities Co., Ltd.

(5) Shareholding by shareholder category(As of March 31, 2024)
Status of shares (1 unit = 100 shares)
Financial
institutions

Financial
instruments
business
operators

Other
corporations

－

35

34

Number ofshares held
(Units)－315,635

Shareholding
ratio (%)

－

33.89

National andlocal
governments

Number ofshareholders

Category

Foreign shareholders

Sharesless than
one unit(Shares)

Other than
individuals

Individuals

Individuals
and others

Total

299

332

24

8,543

9,267

－

6,053

311,321242,72948

55,381

931,167

28,700

0.65

33.43

26.06

0.00

5.94

100

－

Note: Treasury stock of 9,339 shares is included in “Individuals and others” (93 units) and “Shares less than one unit” (39 shares).

- 36 -

(6) Major shareholders(As of March 31, 2024)
Name

Shareholding ratio(excluding treasury
stock) (%)

Number of shares held(Thousands of shares)

Address

The Master Trust Bank of Japan, Ltd. (Trust
Account)

1-8-1 Akasaka, Minato-ku, Tokyo

9,308

9.99

Japan Airlines Co., Ltd.

2-4-11 Higashi-Shinagawa, Shinagawaku, Tokyo

4,398

4.72

ANA Holdings, Inc.

1-5-2 Higashi-Shinbashi,
Tokyo

4,398

4.72

Custody Bank of Japan, Ltd. (Sumitomo Mitsui
Trust Bank, Limited, Retirement Benefit Trust
Account of Keikyu Corporation.)

1-8-12 Harumi, Chuo-ku, Tokyo

3,484

3.74

Mizuho Bank, Ltd.

1-5-5 Otemachi, Chiyoda-ku, Tokyo

3,300

3.54

SSBTC CLIENT OMNIBUS ACCOUNTONE LINCOLN STREET, BOSTON
MA USA 02111

3,166

3.40

MITSUBISHI ESTATE CO., LTD.

1-1-1 Otemachi, Chiyoda-ku, Tokyo

3,111

3.34

MUFG Bank, Ltd.

2-7-1 Marunouchi, Chiyoda-ku, Tokyo

3,068

3.29

Custody Bank of Japan, Ltd. (Trust Account)

1-8-12 Harumi, Chuo-ku, Tokyo

2,821

3.02

TAISEI CORPORATION

1-25-1
Tokyo

2,731

2.93

39,787

42.71

Total

Nishi-Shinjuku,

Minato-ku,

Shinjuku-ku,-

Notes:
1) In the large shareholding report made available for public inspection on July 19, 2022, MUFG Bank, Ltd. and its joint holders,
Mitsubishi UFJ Trust and Banking Corporation and Mitsubishi UFJ International Investment Trust Co., Ltd. are listed as holding thefollowing shares as of July 11, 2022, the Company is unable to confirm the number of shares held as of March 31, 2024, except for
The MUFG Bank, Ltd. listed in the table above, and therefore they are not included in the above major shareholder situation. The
details of the report on major shareholdings are as follows.
Name

Address

Number of shares held(Thousands of shares)

Shareholding ratio(%)

MUFG Bank, Ltd.

2-7-1 Marunouchi, Chiyoda-ku, Tokyo

3,408

3.66

Mitsubishi UFJ Trust and Banking Corporation

1-4-5 Marunouchi, Chiyoda-ku, Tokyo

1,646

1.77

Mitsubishi UFJ International Investment Trust Co.

1-12-1 Yurakucho, Chiyoda-ku, Tokyo

422

0.45

2) Although Capital Research and Management Company is listed as owning the following shares as of June 15, 2023, in the Large
Shareholding Report made available for public inspection on June 22, 2023, the Company is unable to confirm the number of shares
held by the Company as of March 31, 2024, and, therefore, is not included in the above list of major shareholders. The contents of
the Major Shareholder Report are as follows. The details of the major shareholding report are as follows.
Name

Address

Capital Research and Management Company

333 South Hope Street, Los Angels, CA
90071, USA

Capital International Co., Ltd.

2-1-1 Marunouchi, Chiyoda-ku, Tokyo

Number of shares held(Thousands of shares)

Shareholding
ratio (%)

3,839

4.12

474

0.51

3) In the Large Shareholding Report made available for public inspection on March 7, 2022, Mizuho Bank, Ltd. and its joint holders
Mizuho Securities Co., Ltd., Mizuho Trust & Banking Co., Ltd., and Asset Management One Corporation are listed as holding thefollowing shares as of February 28, 2022, the Company is unable to confirm the number of shares held as of March 31, 2024, except
for Mizuho Bank, Ltd. listed in the table above, and therefore they are not included in the above major shareholder situation. The
details of the report on major shareholdings are as follows.
Name

Address

Number of shares held(Thousands of shares)

Shareholding
ratio (%)

Mizuho Bank, Ltd.

1-5-5 Otemachi, Chiyoda-ku, Tokyo

3,300

3.54

Mizuho Securities Co.

1-5-1 Otemachi, Chiyoda-ku, Tokyo

110

0.12

Mizuho Trust & Banking Co.

1-3-3 Marunouchi, Chiyoda-ku, Tokyo

201

0.22

Asset Management One Corporation

1-8-2 Marunouchi, Chiyoda-ku, Tokyo

1,818

1.95

- 37 -

(7) Voting rights[Issued shares](As of March 31, 2024)
Classification－－

Number of
voting rights(Units)
－
－

－

－

－

－

－

930,124－－

The number of shares constituting
one unit is 100 shares.
－－

Number of shares (Shares)

Shares without voting rights
Shares with restricted voting
rights (treasury stock)
Shares with restricted voting
rights (others)
Shares with full voting rights(treasury stock)

Shares with full voting rights(others)
Shares of less than one unit

(treasury stock)
Common Shares(cross-held shares)
Common Shares
Common Shares

－
－

9,300
95,00093,012,400

Common Shares

Number of issued shares
Total number of voting rights

Description

28,70093,145,400－－
930,124[Treasury stock]

Name ofshareholders(treasury stock)
The Company(cross-held shares)
Kanto Kowa Co.
(cross-held shares)
Seikosha Co.
Total(As of March 31, 2024)
Ownership
Total shares held
percentage to the(Shares)
total number ofissued shares (%)
9,300
0.00

Number of shares
held under
own name(Shares)
9,300

Number of shares
held under thenames of others(Shares)－

45,000－45,0000.04

7-8-13
NishiShinjuku, Shinjukuku, Tokyo

50,000－50,0000.05-

104,300－

104,300

0.11

Address
3-3-2,
HanedaAirport, Ota-ku,
Tokyo
5-9-1 Shinbashi,
Minato-ku, Tokyo- 38 -

(8) Details of the Director and Employee Stock Ownership Plan
(Performance-Linked Stock Compensation Plan for Directors and Executive Officers)(a) Outline of this program
By resolutions passed at the 80th annual general meeting of shareholders on June 26, 2024, and at each major groupsubsidiary of the Company in June 2024, the Company has introduced a performance-linked stock compensation plan(hereinafter referred to as the “Plan”) for directors and executive officers, excluding directors who are Audit Committee
Members, Outside Directors and non-residents of Japan (hereinafter referred to as “Directors, etc.”) of the Company andits major group subsidiaries.
This plan adopts a mechanism called a Board Incentive Plan (BIP) Trust for Directors and Corporate Auditors. The
BIP Trust is an incentive plan for directors and corporate auditors based on the performance-linked stock compensation
plan and the restricted stock compensation plan in the United States. As the Share Delivery Regulations separately
stipulated, the BIP Trust will deliver or pay out Company shares acquired by the BIP Trust to directors, etc., in proportion
to the points granted to them based on the degree of achievement of performance targets, position, and tenure of office,etc., and in an amount equivalent to the cash proceeds from the conversion of the Company shares.
This plan provides for the delivery of the Company’s shares, etc. to Directors, etc. through the BIP Trust established
for the implementation of this plan, in principle, for the fiscal year covered by the medium-term management plan set
forth by the Company. In principle, the Company’s shares, etc. will be delivered to Directors, etc. after their retirement.
The initial period covered by the plan is two fiscal years, FY2024 and FY2025. During this period, the Company willcontribute a maximum of 2,292 million yen (including 1,592 million yen for major Group subsidiaries) to the BIP Trust.
(b) Total number of shares of the Company’s stock that may be delivered to directors, etc.
532,000 shares (maximum for two fiscal years. Of these, 376,000 shares will be allocated to major Groupsubsidiaries.)(c) Scope of Persons Eligible for Beneficial Interests and Other Rights under the Plan
Directors, etc. who satisfy the requirements for beneficiaries as separately stipulated in the Share Delivery Regulations- 39 -

2. Acquisitions of Treasury Stock[Classes of shares]
Acquisition of common stock by Article 155, Item 7 of the Companies Act of Japan.
(1) Acquisitions by a resolution of the General Meeting of Shareholders
Not applicable.
(2) Acquisitions by a resolution of the Board of Directors
Not applicable.
(3) Acquisitions not based on a resolution of the General Meeting of Shareholders or the Board of Directors
Category
Number of shares (Shares)
Total amount (Yen)Treasury stock acquired during the fiscal year356
2,331,922
Treasury stock acquired during the current period
20
111,380
Note: Treasury stock acquired during the current period does not include shares constituting less than one unit of shares purchased
during the period from June 1, 2024, to the filing date of this Annual Securities Report.

(4) Disposals or holding of acquired treasury stock
Category

During the fiscal year
Number of shares Total disposal(Shares)amount (Yen)－－

During the current period
Numberof Total Disposal
shares (Shares)
amount (Yen)－－

Acquired treasury stock that was offered to subscribers
for subscription
Acquired treasury stock that was canceled－－－－
Acquired treasury stock that was transferred due to－－－－merger, exchange of shares, issue of shares, or
corporate split
others－－－－Number of treasury stock held
9,339
－
9,359
－
Note: The number of treasury stock held during the current period does not include shares disposed of through the exercise of stock
options or request for sale of shares less than one unit of shares during the period from June 1, 2024, to the filing date of thisAnnual Securities Report.

- 40 -

3. Dividend Policy
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 initiative-taking stance, strive to improve our business performance, secureinternal reserves in consideration of large-scale investments such as the renewal of passenger terminal building facilities
in line with the functional expansion of Haneda Airport, and at the same time, maintain stable dividend payments. To
actively return profits to shareholders through our business performance, we have set a dividend payout ratio of 30% ormore as a target figure in our Medium-Term Business plan.
The Company’s policy is to pay dividends from profits twice a year, an interim dividend and a year-end dividend, and
the Articles of Association provide that the Company may pay an interim dividend by Article 454, Paragraph 5 of theCompanies Act.
The decision-making bodies for these dividends are the Annual General Meeting for the year-end dividend and theBoard of Directors for the interim dividend.
After thorough deliberation of the aforementioned dividend policy and our business performance, we have resolved to
disburse a year-end dividend of 42 yen per share for the current fiscal year. This comprises an ordinary dividend of 37
yen per share and a commemorative dividend of 5 yen per share, in commemoration of the 70th anniversary of ourestablishment in July 2023.
In consequence, the annual dividend for the current fiscal year, inclusive of the interim dividend of 25 yen per sharealready distributed, will be 67 yen per share, representing a payout ratio of 32.41%.
Date of resolution
25 October 2023
Board Resolution
26 June 2024
Resolution of the Annual General Meeting

Total dividends (in millions)
2,328

Dividend per share (yen)
25.00

3,911

42.00

- 41 -

4. Corporate Governance
A. Overview of corporate governance(1) Basic stance on corporate governance
Recognizing that corporate governance is an important management issue, the Company has appointed outside
directors to ensure management transparency since its establishment. The Board of Directors, which generally meets oncea month, consists of fifteen directors (including eight full-time directors and seven part-time outside directors, including
five independent outside directors) and makes decisions on basic management policies, matters prescribed by laws andregulations, and other important management matters, and supervises the conduct of business. The Audit & Supervisory
Committee consists of three independent outside directors and members of the Audit & Supervisory Committee, who
attend the meetings of the Board of Directors and other important meetings to monitor the legality and appropriateness ofthe directors’ performance of their duties, as well as the transparency and soundness of management.
(2) Outline of the corporate governance system and reasons for its adoption
The Board of Directors of the Company consists of 15 members, 7 of whom are non-executive outside directors. The
Board of Directors generally meets once a month to make decisions on basic management policies, matters required bylaw, and other important management matters, and to supervise the conduct of business. In addition, the Executive
Committee, consisting of full-time directors and executive officers, generally meets once a week to discuss basic policies
and important matters related to the conduct of business based on the management policies decided by the Board of
Directors, and to supervise the overall business operations.
In addition, the term of office of directors (excluding directors who are members of the Audit & Supervisory
Committee) and executive officers is set at one year to respond promptly to changes in the business environment.
The Company is a company with an Audit & Supervisory Committee and that monitors the legality and appropriatenessof the directors’ conduct of business and the transparency and soundness of management by realizing more transparent
management and strengthening the supervisory function of the Board of Directors through the establishment of an Audit& Supervisory Committee composed of a majority of outside directors and by allowing directors who are members of the
Audit & Supervisory Committee to have voting rights in the Board of Directors.
In addition, the Remuneration Advisory Committee, which consists of independent non-executive and executive
directors, generally meets once a year as a voluntary advisory body to the Board of Directors to ensure the transparency,
appropriateness, and objectivity of the compensation system for directors and executive officers and to discuss and makerecommendations regarding the compensation system for directors and executive officers.
The Nomination Advisory Committee, which consists of independent outside directors and full-time directors, generally
meets once a year. The Committee has been established as a voluntary advisory body to the Board of Directors to discussand make recommendations on the nomination of candidates for directors and executive officers, based on the basic policyof selecting candidates for directors and executive officers who have a wealth of experience, a high level of insight and ahigh level of expertise.
While the Company engages in transactions with the outside director’s affiliated company, including leasing ofpassenger terminals and outsourcing of facility management, these transactions are general and do not involve any direct
personal interest on the outside director’s part.
Regarding our sustainability initiatives, we have identified our stakeholders, including customers,
shareholders/investors, employees, local communities, and partners, who are relevant to our activities. We have also
formulated a basic sustainability policy to promote sustainable business activities while contributing to the developmentof the economy and society. The Sustainability Committee, chaired by the President and COO, and the Sustainability
Management Office, which reports directly to the President and COO, will collaborate with each department to develop
a foundational policy and ensure that top management provides leadership. The Sustainability Committee and theSustainability Management Office, which reports directly to the President, collaborate with each department to update
and forecast the materialities and KPIs (Key Performance Indicators) outlined in the Mid-term Sustainability Plan, which
was formulated and announced in May 2023, and monitor progress. This has helped to ensure that sustainability initiatives
permeate the entire organization and promote sustainable management. The Committee’s deliberations are reported toand approved by the Board of Directors after deliberation by the Executive Committee, based on the relationship andconsistency with management strategies.
Regarding risk management, the Company has established a Risk Management Committee, chaired by the President
and Representative Director, to enhance the sophistication of the Group-wide risk management system. The Committee
identifies risks of high importance (priority risks), determines responses to such risks, has a system in place to repeatedly
review the status of responses and verify their effectiveness, and reports to the Board of Directors as appropriate, thereby
obtaining oversight of risk management.
Regarding compliance, the Company seeks advice from legal counsel on management and business operations asnecessary and has established a Legal Affairs Section in the General Affairs and Human Resources Department to which
major approval requests are forwarded, to quickly identify various legal issues within the Company and ensure the legality- 42 -

of business operations. In addition, the Company has established a system to promote compliance throughout the Group,
such as the issuance of the Basic Compliance Guidelines, which sets forth the code of conduct for officers and employees,
and the establishment of a Compliance Promotion Committee, which is chaired by the President and Representative
Director. Furthermore, to prevent the occurrence of illegal acts and to minimize the impact on the Company if such acts
occur, a Compliance Information Desk has been established and a reporting system is in place.
The Company’s corporate governance structure is set forth below.

- 43 -

As of the date of this report, the members of the body to be established are as follows: (◎ denotes the chairperson)
Name

Isao
Takashiro
NobuakiYokotaHisayasu
Suzuki
HiroshiOnishiKazuhito
TanakaYoko
KoyamaTakeshiFujinoKeishiMatsuda
Keiji
KimuraIchiroFukuzawa
Yukihiro
Kawamata
Yuji
Saito
TamakiKakizaki
Ryoko
TakedaKenji
IwasakiBoardof
directors

Executive
committee

Audit &
supervisorycommittee

Nomination/
Remunerati
on Advisory
Committee

Compliancepromotioncommittee

Sustainability/risk
management
committee

◎

〇

-

-

-

-

〇

◎

-

◎

◎

◎

〇

〇

-

-

〇

〇

〇

〇

-

-

〇

〇

〇

〇

-

-

〇

〇

〇

〇

-

-

〇

〇

〇

〇

-

-

〇

〇

〇

〇

-

-

〇

〇

Outside Director

〇

-

-

〇

-

-

Outside Director

〇

-

-

-

-

-

Outside Director

〇

-

-

〇

-

-

Outside Director

〇

-

-

-

-

-

〇

-

〇

〇

-

-

〇

-

〇

〇

-

-

〇

-

◎

〇

-

-

Position in the Company
Representative Director,
Chairperson of the Boardof Directors & CEO
Representative Director,
President & COO
Representative Director,
Executive Vice President
Representative Director,
Executive Vice President
Executive Vice President,
Executive Officer
Senior Managing Director,
Executive Officer
Senior Managing Director,
Executive Officer
Managing
Director,
Executive Officer

Outside Director, Audit &Supervisory Committee
MemberOutside Director, Audit &Supervisory Committee
MemberOutside Director, Audit &Supervisory Committee
MemberNotes:
1) The Executive Committee, the Compliance Promotion Committee, and the Sustainability/Risk Committee are also attended byexecutive officers.
2) The Company shall appoint Special Audit & Supervisory Officers to assist the Audit & Supervisory Committee in the performanceof its duties. The Special Audit & Supervisory Officers may attend meetings of the Board of Directors and may also attend meetingsof the Executive Committee.

- 44 -

(3) Other Corporate Governance Issues[Basic Policy]
The Company has established a company-wide internal control system, including Group companies, to enhance theeffectiveness and efficiency of business management, ensure the reliability of the Company’s financial reporting, andpromote compliance with laws and regulations governing business management.
[Status of maintenance](a) Systems to ensure that the execution of duties by directors, executive officers, and employees comply with laws,
regulations, and the Articles of Incorporation
1) The Company issues the Compliance Declaration to express its determination to make group-wide efforts to improve
compliance, establishes a code of conduct for directors and employees by the Basic Compliance Guidelines, and has
established a system to promote compliance, including the establishment of a Compliance Promotion Committee
chaired by the President and Representative Director and composed of the presidents of each subsidiary company
by the Compliance Promotion Committee Regulations.
2) Establish a compliance information desk (reporting system) to prevent the occurrence of illegal acts, etc., andminimize the impact on the Company if such acts should occur.
3) The Compliance Control Division shall take the lead in holding training sessions and explanatory meetings to ensure
thorough compliance.
4) The Company shall establish regulations for the Board of Directors and the Executive Committee and establish asystem to report the status of execution of duties by each director at these meeting bodies.
5) The Company shall establish various internal rules based on laws and regulations and the Articles of Incorporation,such as organization rules and employment rules, and establish a system to ensure the execution of duties by suchinternal rules and regulations.
6) Establish a system to audit the status of execution of duties in each department by the internal audit department.
(b) System for storage and management of information related to the execution of duties by Directors
Information related to the execution of duties by Directors shall be appropriately stored and managed by the internal
rules for document management.
(c) Rules and other systems for managing the risk of loss
1) To develop a system for risk management, the Company shall establish basic rules related to the management of therisk of loss and other systems for the entire Group.
2) The Risk Management Committee shall regularly collect risk information from each department, identify risks thatshould be prioritized based on such information, and update such information regularly.
3) The Risk Management Committee shall compile countermeasures for risks that are assessed to be of high importance,
periodically check the progress of such countermeasures, and report them to the Executive Committee and the Boardof Directors as appropriate.
4) The Internal Audit Department shall audit the adequacy and appropriateness of processes related to the risk
management system, make recommendations for improvement to each department as necessary, and report to the
Audit & Supervisory Committee as appropriate.
(d) System to ensure the efficient execution of duties by directors
1) The Board of Directors shall meet once a month in principle by the Board of Directors Regulations, and once every
3 months in principle at subsidiaries, to make decisions on basic management policies, matters required by law, andother important management matters, and to supervise the execution of business operations.
2) The Executive Committee, attended by full-time directors and executive officers, etc., shall meet once a week inprinciple based on the Executive Committee Regulations, and twice a month at subsidiaries, to deliberate basic
policies and important matters related to business execution based on management policies decided by the Board of
Directors, and supervise overall business operations.
3) The Company shall establish organizational rules to ensure the reliable and efficient operation of the duties of the
Directors.
4) The Company shall establish the Rules of Administrative Authority to clarify the responsibilities and authority ofeach position concerning the execution of the Company’s business and ensuring the efficient and organizedmanagement of the Company’s business.
5) After April 1, 2009, the Company shall introduce an Executive Officer System and reorganize the Managing
Directors’ Meeting into the Executive Committee to separate supervision and execution and accelerate decisionmaking, as well as to improve the executive function, and Executive Officers shall be able to attend such meetings.

- 45 -

(e) System to ensure the appropriateness of operations of the corporate group consisting of the Company and its
subsidiaries
1) The Company shall establish the Affiliated Companies Management Regulations, which stipulate basic policies
regarding the management of subsidiaries by the parent company and the appropriateness of operations between theparent company and subsidiaries, and establish a system to ensure the appropriateness of the execution of businessby group companies.
2) By the Affiliated Companies Management Regulations, the Company shall establish a Group Executive Committee
to advance comprehensive business as a group and strengthen the development of subsidiaries and shall receive
regular reports on the status of business execution, etc.
3) The Basic Compliance Guidelines stipulate that the Company and its subsidiaries shall not have any relationshipwith antisocial forces that threaten social order and safety and shall not respond to any unreasonable or illegal
demands, provided that the Company and its subsidiaries shall act appropriately by social rules and ethical standards.
4) The Company and its subsidiaries shall conduct the necessary documentation, testing, and other activities, andevaluate the effectiveness of these activities in response to the internal control reporting system for financial reporting
based on the Financial Instruments and Exchange Law. In addition, the Company shall establish an Internal Control
Office to promote these activities and enhance internal control over financial reporting.
5) The Internal Audit Department shall establish a system to audit the status of business execution of subsidiaries.
(f) System for reporting to the Audit & Supervisory Committee by directors (who are excluding Audit & Supervisory
Committee members), executive officers, and employees, and system for reporting to the Company’s Audit &Supervisory Committee by directors, statutory auditors, and employees of subsidiaries or persons who receive reports
from them
1) Directors, executive officers, and employees shall report to the Audit & Supervisory Committee on internal control
matters regularly and whenever important matters arise, and the Audit & Supervisory Committee may request reports
from directors, executive officers, and employees (including those of subsidiaries) as necessary.
2) The Audit & Supervisory Committee shall always have access to important minutes and approved documents.
3) Directors, statutory auditors, and employees of subsidiaries, or directors, corporate officers, and employees of theCompany who receive reports from them on matters concerning internal controls or important matters, etc., shallreport to the Audit & Supervisory Committee.
(g) System to ensure that a person who reports to the Audit & Supervisory Committee as described in (6) above will notreceive any disadvantageous treatment because of such a report
The contents of reports shall be treated confidentially, and no disadvantageous treatment shall be accorded to those
who make such reports by the Basic Compliance Guidelines.
(h) Matters Concerning Directors and Employees Assisting the Audit & Supervisory Committee
The Company shall assign employees to assist the Audit & Supervisory Committee in its duties. In addition, Special
Audit & Supervisory Officers shall be selected to assist the Audit & Supervisory Committee in its duties.
(i) Matters concerning the independence of the directors and employees mentioned in (8) above from the Company’s
directors and matters concerning the effectiveness of instructions given by the Audit & Supervisory Committee tosuch directors and employees
If full-time employees assigned to assist the duties of the Audit & Supervisory Committee are assigned to positions
independent from Directors, the Company shall ensure their independence from Directors and the effectiveness of the
Audit & Supervisory Committee’s instructions by, for example, holding prior discussions with the Audit & Supervisory
Committee regarding personnel transfers, etc.
(j) Matters concerning procedures for advance payment or reimbursement of expenses incurred in connection with theexecution of duties by Audit & Supervisory Committee members (limited to those related to the execution of duties
by the Audit & Supervisory Committee) and matters concerning the policy for the treatment of expenses or liabilities
incurred in connection with the execution of duties by Audit & Supervisory Committee members (limited to thoserelated to the execution of duties by the Audit & Supervisory Committee)
If an Audit & Supervisory Committee member requests the Company to pay expenses or settle debts incurred in theexecution of the duties of Audit & Supervisory Committee members (limited to those related to the execution of theduties of the Audit & Supervisory Committee), the Company shall pay such expenses or debts to the Audit & Supervisory
Committee members except when it is deemed that the request is not necessary for the execution of duties of Audit &Supervisory Committee members (limited to the execution of duties of the Audit & Supervisory Committee).

- 46 -

(k) Other systems to ensure the effective execution of audits by the Audit & Supervisory Committee
1) The Audit & Supervisory Committee shall maintain close cooperation with the Internal Audit Department andestablish a system to utilize the results of internal audits.
2) Audit & Supervisory Committee members shall be able to attend important meetings to understand important
decision-making processes and the status of business execution.
(4) Number of Directors
The Company’s Articles of Incorporation provide that the Company shall have no more than 15 directors (including no
more than 4 directors who are members of the Audit & Supervisory Committee).
(5) Requirements for Resolutions for the Election of Directors
The Company’s Articles of Incorporation provide that resolutions for the election of directors shall be adopted by amajority of the votes cast by the shareholders present at a meeting at which shareholders holding one-third or more of thevoting rights of the shareholders entitled to vote are present, and that cumulative voting shall not be used.
(6) Matters to be decided at the Annual General Meeting that may be decided by the Board of Directors[Acquisition of treasury shares]
The Company’s Articles of Incorporation provide that the Company may, by resolution of the Board of Directors under
Article 165, Paragraph 2 of the Companies Act, acquire its shares through market transactions, etc., to enable theimplementation of a flexible capital policy in response to changes in economic conditions and other factors.
[Interim Dividends]
To enhance the opportunities for the return of profits to shareholders, the Articles of Incorporation provide that interim
dividends may be paid by resolution of the Board of Directors by Article 454, Paragraph 5 of the Companies Act.
(7) Requirements for Special Resolutions of the General Meeting of Shareholders
The Company’s Articles of Incorporation provide that the requirements for special resolutions of the General Meetingof Shareholders outlined in Article 309, Paragraph 2 of the Companies Act shall be met by two-thirds or more of thevoting rights of the shareholders present at the meeting if shareholders holding one-third or more of the voting rights ofthe shareholders entitled to exercise their voting rights are present at the meeting. The purpose of this provision is tofacilitate the smooth operation of the General Meeting by relaxing the quorum for special resolutions at the General
Meeting.
(8) Limitation of liability agreement
Under Article 427, Paragraph 1 of the Companies Act, the Company and the non-executive directors have agreed tolimit their liability for damages under Article 423, Paragraph 1 of the same Act.
The maximum amount of liability for damages under the said agreement is the amount specified in Article 425,
Paragraph 1 of the Companies Act.
(9) Summary of the contents of the directors’ and officers’ liability insurance policy
The Company has concluded a Directors’ and Officers’ Liability Insurance Policy with an insurance company under
Article 430-3, Paragraph 1 of the Companies Act, which ensures all directors and officers of the Company and provides
coverage for damages and legal expenses, etc., incurred by the insured due to claims for damages arising from acts
(including omissions) committed by the insured in their capacity as directors or officers of the Company. The policy
provides coverage for damages and legal expenses, etc., incurred by the Insured as a result of claims for damages arisingfrom acts (including omissions) committed by the Insured in his capacity as a director or officer of the Company. The
Company fully pays the premiums.

- 47 -

(10) Activities of the Board of Directors
The Board of Directors, which generally meets once a month and consists of 15 directors (including 8 full-time directors
and 7 non-executive directors, 5 of whom are independent non-executive directors), makes decisions on basic
management policies, matters required by law, and other important management matters.
The main matters discussed are as follows:- Progress of the medium-term business plan “To Be a World’s Best Airport 2025”.
- Sustainability initiatives- Review of the executive compensation system- Response to the evaluation of the effectiveness of the Board of Directors(survey of all directors by an external organization)- Other significant matters related to the conduct of business.
During the year, the Company held 13 meetings of the Board of Directors, each of which was attended as follows.
Board of Directors Meetings
Attendance (13 total meetings)
Isao Takashiro
Representative Director, Chairperson of the Board of Directors & CEO
13 times
Nobuaki Yokota
Representative Director, President & COO
13 times
Hisayasu Suzuki
Representative Director, Executive Vice President
13 times
Masatoshi Akahori
Executive Vice President, Executive Officer
3 times (Note)
Hiroshi Onishi
Representative Director, Executive Vice President
13 times
Yasuhide Yonemoto
Senior Managing Director, Executive Officer
3 times (Note)
Kazuhito Tanaka
Executive Vice President, Executive Officer
13 times
Yoko Koyama
Senior Managing Director, Executive Officer
13 times
Takeshi Fujino
Senior Managing Director, Executive Officer
9 times (Note)
Keishi Matsuda
Managing Director, Executive Officer
10 times (Note)
Kazuyuki Harada
Outside Director
1 time (Note)
Yoshiharu Ueki
Outside Director
10 times
Keiji Kimura
Outside Director
12 times
Ichiro Fukuzawa
Outside Director
12 times
Yukihiro Kawamata
Outside Director
10 times (Note)Koji Iwai
Outside Director, Audit & Supervisory Committee Member
3 times (Note)
Tamaki Kakizaki
Outside Director, Audit & Supervisory Committee Member
13 times
Ryoko Takeda
Outside Director, Audit & Supervisory Committee Member
13 times
Kenji Iwasaki
Outside Director, Audit & Supervisory Committee Member
10 times (Note)
Note: The status of Director Takeshi Fujino, Director Keishi Matsuda, Outside Director Yukihiro Kawamata and Outside Director(Audit & Supervisory Committee Member) Kenji Iwasaki after their appointment on June 28, 2023, and the status of Director
Masatoshi Akahori, Director Yasuhide Yonemoto, Outside Director Kazuyuki Harada and Outside Director (Audit & Supervisory
Committee Member) Koji Iwai until their retirement on June 28, 2023.
Name

Position in the Company- 48 -

(11) Activities of the Nomination and Remuneration Advisory Committees
The Nominating Advisory Committee consists of independent outside directors and one executive officer and generally
meets once a year. It is established as an advisory body to the Board of Directors to discuss and make recommendations
regarding the nomination of director and executive officer candidates, based on the policy of selecting director andexecutive officer candidates who have broad experience, a high level of insight, and a high level of expertise.
During the fiscal year under review, the Nomination Advisory Committee met twice to discuss and propose thenomination of candidates for directors and executive officers, and all members attended the meeting.
The Remuneration Advisory Committee consists of independent outside directors and an executive officer andgenerally meets once a year. It was established as an advisory body to the Board of Directors to discuss and makerecommendations regarding the compensation system for directors and executive officers, to ensure the transparency,
appropriateness, and objectivity of the compensation system for directors and executive officers.
During the fiscal year under review, the Remuneration Advisory Committee met three times to discuss and propose thecompensation system for directors (excluding directors who are members of the Audit & Supervisory Committee) and
executive officers. All members participated in all meetings.
(12) Indemnification of Directors
Under Article 426, Paragraph 1 of the Companies Act, the Company’s Articles of Incorporation provide that Directors(including former Directors) and Statutory Auditors (including former Statutory Auditors) may, by resolution of the Boardof Directors, be exempted from the liability for damages provided for in Article 423, Paragraph 1 of the Companies Act,to the extent permitted by law, to enable them to properly perform their expected functions by limiting their liability to areasonable extent.
Note: The Statutory Auditors (including former Statutory Auditors) were appointed before the conclusion of the 78th Ordinary General
Meeting of Shareholders.

(13) Basic Views on Measures for Eliminating Anti-Social Forces and Status of Development[Basic Policy]
The Group shall resolutely confront anti-social forces that pose a threat to civil society.
[Status of maintenance]
In the action guidelines of the Basic Compliance Guidelines established on October 26, 2005, we have established apolicy of resolutely confronting anti-social forces that pose a threat to civil society and have put in place a system forrefusing to provide benefits, sharing information on anti-social forces within the Group, and reporting and responding tosuch forces. Furthermore, we cooperate in the industry and local communities and work closely with the police and otherrelevant government agencies to eliminate anti-social forces.

- 49 -

(14) Basic Policy Concerning Company Control
The following is a summary of each of the Company’s Basic Policy Concerning Company Control, special efforts tocontribute to the realization of the Basic Policy Concerning Company Control, and efforts to prevent decisions on the
Company’s financial and business policies from being controlled by persons deemed inappropriate considering the Basic
Policy Concerning Company Control.
[1. Basic Policy Concerning Company Control]
The Company believes that in the event of a large-scale acquisition of the Company’s shares, the final decision as towhether to accept such acquisition should be left to the Company’s shareholders at that time.
At Haneda Airport, the Company constructs, manages, and operates the domestic terminal as an aviation-related
business. It made the Tokyo International Air Terminal Corporation (TIAT) a consolidated subsidiary in April 2018 to run
the domestic and international terminals in an integrated manner, thereby operating the terminal more efficiently. On theother hand, as a non-aeronautical business, we operate merchandise sales and other businesses at Haneda Airport, Narita
International Airport, Kansai International Airport, and Chubu Centrair International Airport, and we are using theearnings from these businesses to expand and improve terminal buildings in response to the rapid development of theaviation industry. In addition, we have been developing our business outside of airports by utilizing our accumulated
knowledge. Therefore, those who control decisions on the Company’s financial and business policies must have anappropriate awareness of the high level of safety and public interest of the passenger terminal business, as well as a deep
understanding of the critical management resources that are the source of the Company’s corporate value (highly originaltechnology and know-how, knowledge, and information in specific market fields, deep trust relationships with business
partners cultivated over a long period, high-quality human resources with expertise in specialized fields, etc.).
In addition, we will implement measures to capture domestic consumption by foreign visitors to Japan, which is
expected to increase in the medium to long term and advance the medium-term business plan while reorganizing andstrengthening our organization and governance to support these measures, create an environment for new value creation,
expand opportunities for dialogue with shareholders and investors, and enhance the certainty of each measure.
Although the Company endeavors in its investor relations activities to ensure that its shareholders and investors
understand the Company’s business activities and policies, etc. if a person who intends to conduct a Large-Scale Purchase(hereinafter referred to as “Large-Scale Purchaser”) suddenly appears, For our shareholders to make an appropriate
judgment within a short period regarding the impact of such Large-scale Purchase on our corporate value and, in turn, thecommon interests of our shareholders, we believe it is essential that both the Large-scale Purchaser and our Board of
Directors provide appropriate and sufficient information regarding the impact of the Large-scale Purchase on our company
and the management policy and business plan that the Large-scale Purchaser plans to adopt if it participates in ourmanagement. Furthermore, we believe that the presentation of the results of the Board of Directors examination, etc. ofsuch a Large-scale Purchase will contribute to the decision-making process of the Company’s shareholders.
Considering the above, the Company believes that in the event of a Large-scale Purchase, the Large-scale Purchaser
must provide the Board of Directors of the Company with necessary and sufficient information regarding the Large-scale
Purchase in advance by certain rules to be established and disclosed in advance by the Company for the benefit ofshareholders’ decision-making. In addition, to prevent a malicious Large-Scale Purchase of the Company’s shares thatwould damage the corporate value of the Company and, in turn, the common interests of its shareholders, the Company
will ensure that the Large-Scale Purchaser is allowed to ask reasonable questions and demand improvements in the detailsof the proposal of the Large-Scale Purchaser or present a reasonable alternative proposal that will benefit the shareholders.
The Company believes that it is necessary to take reasonable measures against a Large-Scale Purchase that does notcomply with the Large-Scale Purchase Rules from the perspective of maintaining and enhancing corporate value and, inturn, the common interests of shareholders.

- 50 -

[2. Special Efforts to Contribute to the Realization of the Basic Policy Concerning Company Control]
In special efforts to contribute to the realization of the Basic Policy Concerning Company Control, the Company strives
to maintain and enhance corporate value and, in turn, the common interests of its shareholders by taking the following
measures in addition to those described in (3) below.
(a) Efforts based on the medium-term business planTo establish absolute safety in our passenger terminal buildings, we are committed to further strengthening safetymeasures, while aiming to operate passenger terminal buildings in a customer-oriented manner, and to ensure that ourGroup’s CS philosophy is “Peace to those who enter in, good health to those who leave again” is applied to our operations.
In addition, the entire company is striving to further improve services and earnings by thoroughly implementing thecustomer-first principle and actively developing human resources under the Group’s CS philosophy.
(b) Efforts to Strengthen and Enhance Corporate Governance
Based on the recognition that corporate governance is an important management issue, the Company has appointed
outside directors to ensure management transparency since its establishment. The Company previously had a Board of
Statutory Auditors system. Still, upon critical approval of an amendment to the Articles of Incorporation at the 78th
Ordinary General Meeting of Shareholders held on June 24, 2022, the Company transitioned to a company with an Audit& Supervisory Committee system. The Board of Directors, which meets once a month in principle, consists of fifteen
directors (of which, eight full-time directors and seven part-time outside directors, including five independent outside
directors) and makes decisions on basic management policies, matters stipulated by laws and regulations, and otherimportant management matters, as well as supervising the execution of business operations. The Audit & Supervisory
Committee consists of three independent outside directors. Directors who are Audit & Supervisory Committee members
attend Board of Directors meetings and other important meetings to monitor the legality and appropriateness of thedirectors’ business execution of duties, as well as the transparency and soundness of management.
[3. Efforts to Prevent Inappropriate Persons from Controlling Decisions on Financial and Business Policies of theCompany Considering the Basic Policy Concerning Company Control]
Considering the Basic Policy Concerning Company Control described in (1) above, to prevent decisions on the
Company’s financial and business policies from being controlled by inappropriate persons, the Company has establishedthe “Policy Concerning Large-Scale Purchases of the Company’s Shares (Takeover Defense Measures)” (hereinafterreferred to as the “Policy”). The Policy sets forth the Large-Scale Purchase Rules in the event of a Large-Scale Purchaseand the procedures for triggering countermeasures if a Large-Scale Purchaser fails to comply with the Rules.
(a) Establishment of the Independent Committee
The Independent Committee shall be established as an organ to examine and deliberate whether or not the LargeScale Purchase is detrimental to the corporate value of the Company and, in turn, the common interests of its shareholders,
and to ensure the fairness of the Board of Directors’ decision and response concerning the Large-Scale Purchase. The
Independent Committee shall have at least three members, who shall be appointed from among the Company’s outside
directors and outside knowledgeable persons who are independent of the Company’s management in charge of businessexecution to enable fair and neutral judgments.
The Board of Directors of the Company shall consult with the Independent Committee on the propriety of a resolution
for non-implementation of countermeasures if a Large-Scale Purchase is commenced, and the Board of Directors of theCompany shall respect such recommendation to the maximum extent possible.
(b) Large-Scale Purchase Rules
As per the Large-Scale Purchase Rules, the Large-Scale Purchaser shall submit information, etc. by the prescribed
procedures, and shall not conduct the Large-Scale Purchase until the Board of Directors passes a resolution not to trigger
the countermeasure after the information submission procedures, etc. have been completed.
1) Prior Submission of a Statement of Intention for a Large-scale Purchase to the Company
The Large-Scale Purchaser shall submit to the Company in advance a Large-Scale Purchase Statement of Intention(in the form prescribed by the Company) to the effect that the Large-Scale Purchaser will conduct the Large-Scale
Purchase by the Large-Scale Purchase Rules.
2) Submission of information regarding the Large-scale PurchaseUpon receipt of the Large-Scale Purchaser’s Statement of Intention, the Company will deliver to the Large-Scale
Purchaser an information list containing the items of information to be submitted again within 10 business days (notcounting the first day).
- 51 -

Based on the information list, the Large-scale Acquirer will be requested to submit to the Company necessary andsufficient information regarding the Large-scale Acquisition for the shareholders’ judgment and the Independent
Committee’s consideration.
3) Notice of Commencement of Consideration by the Independent Committee
If the Company determines that it is appropriate for the Independent Committee to commence its consideration of
the Large-scale Acquisition, such as when the submission of information regarding such Large-scale Acquisition isdeemed to be complete, the Company will notify and disclose such fact to the Large-scale Acquirer and request that
the Independent Committee commence its consideration.
4) Consideration by the Independent Committee and resolution recommending non-activation
Within the period set as the Independent Committee Consideration Period, the Independent Committee will consider
the terms of the Large-scale Acquisition and alternative plans provided by the Board of Directors, etc.
If the Independent Committee requests the Large-scale Acquirer to provide materials for consideration or otherinformation or to discuss or negotiate with the Independent Committee, the Large-scale Acquirer must promptly
respond to such request. If the Independent Committee finds, by unanimous resolution, as a result of the examinationof information, etc. concerning such Large-scale Acquisition, that such Large-scale Acquisition is not likely to damage
the Company’s corporate value and harm the interests of the Company and, in turn, the common interests ofshareholders, it shall pass a resolution recommending non-activation to the Board of Directors of the Company.
5) Confirmation of Shareholders’ Intentions at the General Meeting of Shareholders
If the Independent Committee does not reach a resolution recommending non-implementation within the
Independent Committee Consideration Period, the Independent Committee shall recommend that the General
Shareholders’ Meeting for Confirmation of Shareholders’ Intentions regarding countermeasures against the relevant
Large-scale Purchase be held, and in response to such recommendation, the Board of Directors shall promptly decideto convene the General Shareholders’ Meeting for Confirmation of Shareholders’ Intentions.
Resolutions of the General Shareholders’ Meeting for Confirmation of Shareholders’ Intentions shall be adopted bya majority of the voting rights of the shareholders present at the meeting.
6) Resolution of the Board of Directors not to act
If the Independent Committee recommends that the Board of Directors should pass a resolution not to trigger theLarge-Scale Purchase, the Board of Directors shall promptly pass a resolution not to trigger the Large-Scale Purchase
unless there are exceptional circumstances that violate its duty of care as a director.
In addition, the Board of Directors shall promptly pass a resolution of non-implementation if the General
Shareholders’ Meeting for Confirmation of Shareholders’ Intentions provided in “5)” above indicates shareholders’intentions to the effect that the countermeasures should not be implemented.
7) Triggering of Countermeasures against a Large-scale Purchase that does not comply with the Large-scale Purchase
Rules
Until the Company’s Board of Directors passes a resolution of non-implementation, the Large-scale Acquirer shallnot conduct the Large-scale Acquisition. If a Large-Scale Purchase that does not comply with the Large-Scale Purchase
Rules is conducted and it is reasonable to trigger countermeasures, the Board of Directors of the Company shall takecountermeasures based on the Policy to ensure and enhance the corporate value of the Company and the common
interests of its shareholders. Countermeasures under the Policy include the gratis allotment of stock acquisition rights
and other measures permitted under laws and regulations and the Company’s Articles of Incorporation.
(c) Impact on Shareholders and Investors
The purpose of the Policy is to provide information necessary for the Company’s shareholders to decide whether toaccept the Large-scale Purchase and to ensure that the Company’s shareholders have a reasonable amount of time toconsider and negotiate a better proposal for the Large-scale Purchase and an opportunity to receive an alternative
proposal from the Company’s Board of Directors, etc. The Policy is also intended to ensure that the Company’s
shareholders will be provided with the information necessary for them to make an informed decision on the Large-scale
Purchase. The purpose is to ensure that the Company’s shareholders will have a reasonable amount of time to consider
and negotiate a better proposal for the Large-Scale Purchase and an opportunity to receive an alternative proposal fromthe Board of Directors. We believe that this will enable our shareholders to make an appropriate decision on acceptanceof the Large-scale Purchase and other options based on sufficient information, which will lead to the protection of theinterests of our shareholders. Therefore, we believe that the establishment of the Policy is a prerequisite for ourshareholders and investors to make appropriate investment decisions and contributes to the interests of our shareholders
and investors.

- 52 -

[4. Judgment of the Board of Directors and Reasons for the Judgment]
The Company’s medium-term business plan, reinforcement and enhancement of corporate governance, and othermeasures are exactly in line with the Company’s basic policy and were formulated as specific measures to enhance theCompany’s corporate value and the common interests of shareholders continuously and sustainably.
The Policy is in line with the above basic policy, and since the following special efforts have been made to enhance therationality of the Policy, the Policy is not detrimental to the corporate value of the Company or the common interests of
its shareholders, nor is it intended to maintain the status of the Company’s officers.
(a) The basic contents of this policy were approved in advance by shareholders at the 79th Annual General Meeting of
Shareholders held on June 28, 2023. The approval of such shareholders’ meeting shall be effective for 3 years fromsuch annual shareholders’ meeting. At the end of the three years, the Company’s Board of Directors plans to confirm
the shareholders’ intentions regarding the Policy again and ask the shareholders to decide. During the effective periodof the approval by the shareholders meeting, the Board of Directors of the Company will make decisions andamendments to the details of the Policy and other necessary matters within the scope of the purpose of the approvalby the shareholders meeting, taking into consideration trends in related legal systems and various other circumstances
surrounding the Company.
(b) If the General Shareholders’ Meeting for Confirmation of Shareholders’ Intentions indicates the shareholders’ intent
that the countermeasures should not be triggered, the Board of Directors shall promptly pass a resolution for nonimplementation of the countermeasures. In addition, the Independent Committee, which consists of members
appointed from among the Company’s outside directors and outside knowledgeable persons who are independent of
the Company’s management team that executes the Company’s business, shall, within the Independent Committee
Review Period before the convocation of the General Shareholders’ Meeting for Confirmation of Shareholders’Intentions, decide on the Large-scale Purchase if it is considered that such Large-scale Purchase will damage theCompany’s corporate value, harm the interests of the Company, and ultimately, the common interests of shareholders.
If the Independent Committee, which is composed of members from among the members of the Board of Directors,
finds that the Large-scale Purchase is not likely to damage the Company’s corporate value and harm the interests of
the Company and, in turn, the common interests of its shareholders, the Board of Directors of the Company shallpromptly pass a resolution of non-activation by the said recommended resolution unless there are special
circumstances that violate the duty of care of a good manager as a director. In this way, the Policy ensures a mechanism
to prevent arbitrary triggering of the resolution to maintain the status of directors, etc.
(c) The Company does not add any weight to the requirements for the resolution of dismissal of directors from theordinary resolution. The large-scale acquirer can abolish the Policy by nominating directors, who are then appointed
by ordinary resolution at a general meeting of the company's shareholders, and who can then resolve to terminate thepolicy. Accordingly, the Policy is not a dead-hand takeover defense measure (a takeover defense measure that cannot
be stopped even if a majority of the members of the Board of Directors are replaced). In addition, since the Company
has not adopted a staggered term system, the Policy is not a slow-hand takeover defense measure (i.e., a takeover
defense measure that requires time to prevent its triggering because members of the Board of Directors cannot be
replaced at once).
(d) The Policy satisfies all the requirements of legality (requirements to be met in order not to be subject to an injunction
against the issuance of stock acquisition rights, etc.) and rationality (Requirements to be met to obtain theunderstanding of shareholders, investors, and other stakeholders) required by the “Guidelines Regarding Takeover
Defense Measures to Ensure or Enhance Corporate Value and Common Interests of Shareholders” established by the
Ministry of Economy, Trade, and Industry and the Ministry of Justice on May 27, 2005. In addition, the Company’s
proposal also conforms to the content of the June 30, 2008, report “Takeover Defense Measures in Light of Recent
Environmental Changes” issued by the Corporate Value Study Group of the Ministry of Economy, Trade, and Industryof Japan.
[5. Others]
For details of the Policy, please refer to the text “Continuation of the Policy Against Large-Scale Purchases of theCompany’s Shares (Takeover Defense Measures)” posted on the Company’s website.
(Reference URL: https://www.tokyo-airport-bldg.co.jp/files/en/ir/000013351.pdf)- 53 -

B. Board of Directors and Audit & Supervisory Committee Members(1) List of Board of Directors and Audit & Supervisory Committee Members
Male: twelve (12) persons, Female: three (3) persons (percentage of the female: 20.0 %)
Name
(Date
birth)

of

Position in the
Company

Isao
Takashiro
(July
13,
1943)
(Note 2)

Representative
Director,
Chairperson of
the Board of
Directors&
CEO

NobuakiYokota(September
6, 1951)(Note 2)

Representative
Director,
President&
COO

Experience and positions

April 1968
June 2001
April 2003
April 2005
April 2009
June 2016
April 1974
April 2009
June 2011
June 2014
June 2015
May 2016
June 2016

April 1975
July 2006
Hisayasu
Suzuki(March 31,
1953)(Note 2)

Representative
Director,
Executive Vice
President

July 2009
January 2013
January 2014
June 2014
June 2015
June 2023

April 1979
June 2009
June 2010
April 2011
HiroshiOnishi(June 13,
1955)
(Notes 2,5)

Representative
Director,
Executive Vice
President(as of June 26, 2024)

February 2012
April 2017
July 2017
June 2018
June 2021
June 2023

Joined the Company
Senior Managing Director
Representative Director and Executive Vice President
Representative Director and President
Representative Director, President and Executive Officer
Representative Director, Chairperson & CEO (current position)
Joined the Company
Managing Director and Executive Officer
Senior Managing Director and Executive Officer
Executive Vice President and Executive Officer
Representative Director, Executive Vice President, and Executive
Officer
Chairperson, All-Japan Airport Terminal Association (currently The
All-Japan Airport Association, Inc.) (current position)
Representative Director, President and Executive Officer & COO(current position)[Significant concurrent positions]
Chairperson, The All-Japan Airport Association, Inc.
Joined the Ministry of Transport (currently the Ministry of Land,
Infrastructure, Transport and Tourism)
Director-General, Civil Aviation Bureau, the Ministry of Land,
Infrastructure, Transport and Tourism
Commandant, the Japan Coast Guard
Full-time Adviser, the Company
Senior Executive Officer
Executive Vice President and Executive Officer
Representative Director, Executive Vice President, and Executive
Officer (current position)
Outside Director, SAN-AI OBBLI CO., LTD. (current position)[Significant concurrent positions]
Outside Director, SAN-AI OBBLI CO., LTD.
Joined Isetan Co., Ltd.
Representative Director, President and Executive Officer, Isetan Co.,Ltd.
Director, Isetan Mitsukoshi Holdings Ltd.
President, Representative Director, Executive Officer, Isetan
Mitsukoshi Ltd.
Representative Director, President and Executive Officer, Isetan
Mitsukoshi Holdings Ltd.
Director, Isetan Mitsukoshi Holdings Ltd.
Special Adviser, the Company
Executive Vice President and Executive Officer
Outside Director, KOMATSU MATERE Co., Ltd. (current position)
Representative Director, Executive Vice President, and Executive
Officer (current position)[Significant concurrent positions]
Outside Director, KOMATSU MATERE Co., Ltd.

- 54 -

Numberof sharesoftheCompany
held

47,92039,61021,000

9,400

Name
(Date ofbirth)

Position in the
Company

Experience and positions

April 1987
June 2011
Kazuhito
Tanaka(March 8,1965)(Note 2)

Executive Vice
President,
Executive
OfficerJune 2013
July 2014

June 2015
June 2020
June 2023
April 1992
June 2013
July 2014

June 2016
July 2017
Yoko
Koyama(January 12,
1968)(Note 2)

SeniorManaging
Director,
Executive
Officer

August 2017
April 2019
July 2019

June 2020
June 2023

April 1991
June 2013
June 2016
June 2020
TakeshiFujino(January 3,
1968)(Note 2)

SeniorManaging
Director,
Executive
OfficerJune 2021

June 2022

June 2023

Joined the Company
Executive Officer and Vice President, Corporate Planning Division,
Corporate Planning Department
Managing Executive Officer and Vice President, Corporate Planning
Division, Corporate Planning Department
Managing Executive Officer; Deputy Senior Vice President,
Corporate Planning Department; and Deputy Senior Vice President,
Administration Department
Managing Director and Executive Officer
Senior Managing Director and Executive Officer
Executive Vice President and Executive Officer (current position)
Joined the Company
Executive Officer and Vice President, Corporate Planning Division,
Corporate Planning Department
Executive Officer; Vice President, Corporate Planning Division,
Corporate Planning Department; and Vice President, Business
Planning Division
Managing Executive Officer and Deputy Senior Vice President,
Corporate Planning Department
Managing Executive Officer and Deputy Senior Vice President,
Business Development Department
Outside Director, Haneda Mirai Kaihatsu Co., Ltd. (current position)
Outside Director, Kyushu Kumamoto International Airport Co., Ltd.
(current position)
Managing Executive Officer; Deputy Senior Vice President, Business
Development Department; and Deputy Senior Vice President,
Passenger Terminal Operation Department (in charge of Facility
Planning Office / Tokyo Olympic & Paralympic Games Promotion
Office)Managing Director and Executive Officer
Senior Managing Director and Executive Officer (current position)[Significant concurrent positions]
Outside Director, Haneda Mirai Kaihatsu Co., Ltd.
Outside Director, Kyushu Kumamoto International Airport Co., Ltd.
Joined the Company
Executive Officer and Vice President, International Terminal
Business Department
Managing Executive Officer, Deputy Senior Vice President,
Operation Department
Chief Managing Executive Officer; Deputy Senior Vice President,
Passenger Terminal Operation Department; Deputy Senior Vice
President, Business Development Department
Chief Managing Executive Officer in charge of the Business
Promotion Office; Deputy Senior Vice President, Business
Development Department; Deputy Senior Vice President, Passenger
Terminal Operation Department
Chief Managing Executive Officer in charge of Business Promotion
Office; Deputy Senior Vice President of Business Development
Department (in charge of New Business); Deputy Senior Vice
President of passenger Terminal Operation Department (in charge ofRetail Sales)
Senior Managing Director and Executive Officer (current position)- 55 -

Numberof sharesof theCompany
held

15,900

8,800

7,200

Name
(Date ofbirth)

Position in the
Company

Experience and positions

April 1994
June 2019

KeishiMatsuda(March 19,
1972)(Note 2)

Managing
Director,
Executive
OfficerJune 2020

June 2022

Keiji
Kimura(February21, 1947)(Notes 1,2)

June 2023
May 1970
June 2005
April 2011
June 2016
April 2017
June 2017
June 2018
OutsideDirector

June 2019
June 2019

October 1989
June 2019
April 2020
April 2021
April 2022
IchiroFukuzawa(April 14,
1961)(Notes 1,2)

OutsideDirector

April 2022
June 2022
April 2024
June 2024
June 2024

Joined the Company
Executive Officer; General Manager, Corporate Planning Group,
Planning & Administration Department; Vice President, Business
Reform Office; Vice President, Facility Planning Office / Tokyo
Olympic & Paralympic Games Promotion Office, Facility
Management Group, Passenger Terminal Operation Department
Executive Officer; General Manager, Corporate Planning Group,
Planning & Administration Department; General Manager, Facility
Management Group, Passenger Terminal Operation Department;
Vice President, Facility Planning Office / Tokyo Olympic &Paralympic Games Promotion Office
Executive Officer; General Manager, Corporate Planning Group,
Planning & Administration Department; Vice President, Facility
Planning Office; General Manager, Business Development
Department
Managing Director and Executive Officer (current position)
Joined Mitsubishi Estate Co., Ltd.
President & Representative Director, Mitsubishi Estate Co., Ltd.
Chairperson & Representative Director, Mitsubishi Estate Co., Ltd.
Chairperson of the Board, Mitsubishi Estate Co., Ltd.
Director, Mitsubishi Estate Co., Ltd.
Senior Advisor, Mitsubishi Estate Co., Ltd. (current position)
Outside Director, Matsumoto Kiyoshi Holdings Co., Ltd. (current
position)
Chairperson, Japan Building Owners & Managers Association(current position)
Outside Director, the Company (current position)[Significant concurrent positions]
Senior Advisor, Mitsubishi Estate Co., Ltd.
Outside Director, Matsumoto Kiyoshi Holdings Co., Ltd.
Chairperson, Japan Building Owners & Managers Association
Joined ALL NIPPON AIRWAYS CO., LTD.
Member of the Board of Directors and Deputy Executive Officer,
ANA HOLDINGS INC.
Member of the Board of Directors and Executive Officer, ANA
HOLDINGS INC.
Member of the Board of Directors and Senior Executive Officer,
ANA HOLDINGS INC.
Representative Director and Executive Vice President, ANA
HOLDINGS INC.
Representative Director and Executive Vice President, ALL NIPPONAIRWAYS CO., LTD.
Outside Director, the Company (current position)
Senior Advisor, ANA HOLDINGS INC.
Full-time Statutory Auditor, ANA HOLDINGS INC. (current
position)Full-time Statutory Auditor, ALL NIPPON AIRWAYS CO., LTD.
(current position)[Significant concurrent positions]
Full-time Statutory Auditor, ANA HOLDINGS INC.
Full-time Statutory Auditor, ALL NIPPON AIRWAYS CO., LTD.

- 56 -

Numberof sharesof theCompany
held

4,400

-

-

Name
(Date ofbirth)

Yukihiro
Kawamata(February
10, 1964)(Notes 1,2)

Position in the
Company

Experience and positions

April 1986
June 2016
June 2019
April 2022
OutsideDirector

June 2023

April 1988
April 2019
April 2021

April 2023
Yuji Saito(September
26, 1964)(Notes 1,2)

OutsideDirector

June 2023

April 2024

June 2024

April 2009
April 2012

TamakiKakizaki(January 16,
1961)(Notes 1,3)

OutsideDirector, Audit& Supervisory
Committee
MemberApril 2014
June 2016
June 2017
June 2020
June 2021
June 2022

Joined Keikyu Corporation
Director, Keikyu Corporation
Director, Managing Executive Officer, Keikyu Corporation
Representative Director, President and Executive Officer, Keikyu
Corporation (current position)
Outside Director, the Company (current position)[Significant concurrent positions]Representative Director, President and Executive Officer, Keikyu
Corporation
Joined Japan Airlines Co., Ltd.
Executive Officer and Senior Vice President, Corporate Control
Division, Japan Airlines Co., Ltd.
Managing Executive Officer; Senior Vice President, Corporate
Planning Division; Senior Vice President, Corporate Control
Division, Japan Airlines Co., Ltd.
Senior Managing Executive Officer; Senior Vice President,
Corporate Planning Division, Japan Airlines Co., Ltd. Chief Financial
Officer of the JAL Group
Director, Senior Managing Executive Officer; Senior Vice President,
Corporate Planning Division, Japan Airlines Co., Ltd.
Chief Financial Officer of the JAL Group
Representative Director, Executive Vice President, Japan Airlines
Co., Ltd. (current position)
Chief Financial Officer of the JAL Group (current position)
Outside Director, the Company (current position)[Significant concurrent positions]Representative Director, Executive Vice President, Chief Financial
Officer, Japan Airlines Co., Ltd.
Professor, Graduate School of Law, Toyo University
Professor, International Graduate School of Social Sciences,
Yokohama National University
Professor, Faculty of Law, Meiji University (current position)
Outside Director, Mitsubishi Foods Corporation (current position)
Outside Statutory Auditor, the Company
Outside Director, Keikyu Corporation (current position)
Outside Director, The Akita Bank, Ltd. (current position)
Outside Director, Audit & Supervisory Committee Member, theCompany (current position)[Significant concurrent positions]
Professor, Faculty of Law, Meiji University
Outside Director, Mitsubishi Foods Corporation
Outside Director, Keikyu Corporation
Outside Director, The Akita Bank, Ltd.

- 57 -

Numberof sharesof theCompany
held

-

-

-

Name
(Date ofbirth)

Position in the
Company

Experience and positions

April 1998
December 2014
February 2016
June 2017

Ryoko
Takeda
(July
5,
1970)
(Notes 1,3)

OutsideDirector, Audit& Supervisory
Committee
MemberJune 2020
June 2021
June 2022
November 2022
January 2023
March 2023

April 1978
June 2010
April 2014
April 2017
Kenji
Iwasaki(January 3,
1955)(Notes 1,4)

OutsideDirector, Audit& Supervisory
Committee
MemberJune 2017

June 2018
June 2022
June 2023

Registered as an attorney-at-law and joined Nishimura & Partners(now Nishimura & Asahi)
Special Counsel, City-Yuwa Partners
Certified Fraud Examiner (CFE) credential
Councilor, International Civil and Commercial Law Center (current
position)
Outside Statutory Auditor, Arconix Corporation (current position)
Outside Director, Denki Kogyo Co. (current position)
Substitute Director, Audit & Supervisory Committee Member, theCompany
Outside Director, Audit & Supervisory Committee Member, theCompany (current position)
Partner, City-Yuwa Partners (current position)
External Director, Komazawa University Educational Corporation(current position)[Significant concurrent positions]
Partner, City-Yuwa Partners
Councilor, International Civil and Commercial Law Center
Outside Statutory Auditor, Arconix Corporation
Outside Director, Denki Kogyo Co.
External Director, Komazawa University Educational Corporation
Joined Tokio Marine & Fire Insurance Co., Ltd.
Managing Director, Tokio Marine & Nichido Fire Insurance Co., Ltd.
Senior Managing Director, Tokio Marine & Nichido Fire InsuranceCo., Ltd.
Executive Vice President, Tokio Marine & Nichido Fire InsuranceCo., Ltd.
Vice President Executive Officer, Tokio Marine Holdings, Inc.
Executive Vice President, Tokio Marine & Nichido Fire InsuranceCo., Ltd.
Executive Vice President, Tokio Marine Holdings, Inc.
Executive Director, The General Insurance Association of Japan
Outside Auditor, SOHGO SECURITY SERVICES CO., LTD.
(current position)
Outside Director, Audit & Supervisory Committee Member, theCompany (current position)[Significant concurrent positions]
Outside Auditor, SOHGO SECURITY SERVICES CO., LTD.
Total

- 58 -

Numberof sharesof theCompany
held--154,230

Notes:1) Four directors, Keiji Kimura, Ichiro Fukuzawa, Yukihiro Kawamata, and Yuji Saito, and three directors (Audit & Supervisory
Committee members), Tamaki Kakizaki, Ryoko Takeda and Kenji Iwasaki, are outside directors.
2) The term of office will expire at the close of the annual general meeting of shareholders for the last fiscal year ending within one
year after their election at the annual general meeting of shareholders to be held on June 26, 2024.
3) The term of office will expire at the close of the annual general meeting of shareholders for the last fiscal year ending within two
years after the election at the annual general meeting of shareholders to be held on June 26, 2024.
4) His term of office will expire at the close of the annual general meeting of shareholders for the last fiscal year ending within two
years after his election at the annual general meeting of shareholders to be held on June 28, 2023.
5) The Company has appointed a substitute director who is a member of the Audit & Supervisory Committee under Article 329,
Paragraph 3 of the Companies Act in preparation for a shortage in the number of directors who are members of the Audit &Supervisory Committee as required by law and regulations. The resolution to elect a substitute member of the Audit & Supervisory
Committee shall be valid until the beginning of the ordinary general meeting of shareholders relating to the last fiscal year ending
within two years after his election at the ordinary general meeting of shareholders held on June 28, 2023, and the term of office ofthe substitute member of the Audit & Supervisory Committee shall expire upon the expiration of the term of office of the memberof the Audit & Supervisory Committee who retired before the expiration of his term of office. The short biography of the substitutemember of the Audit & Supervisory Committee is as follows.
Numberof shares
Name
Experience and positionsof the(Date of birth)Company
held
April 1999
Joined Tokyo Office, Asahi Audit Corporation (now KPMG AZSA LLC)
Yoko Sugita
January 2004
Joined San Francisco Office, BDO Seidman LLP(September 18, 1976)
January 2009
Participated in Advantage Partners Inc.
January 2015
Partner, Phronesis Partners Co., Ltd. (current position)6) The Company has established an executive officer system to improve management efficiency by speeding up decision-making,clarifying the division of business execution, and strengthening the functions of the Board of Directors. The executive officers who
are not also directors are as follows.
Name
Position in the Company
Morikazu Chiku
Chief Senior Managing Executive Officer
Yasuhide Yonemoto
Chief Senior Managing Executive Officer
Shigetaka Taguchi
Chief Senior Managing Executive Officer
Isamu Jinguji
Senior Managing Executive Officer
Eiji Ueda
Chief Managing Executive Officer
Tatsuya Endo
Chief Managing Executive Officer
Issei Hachisuka
Chief Managing Executive Officer
Kenji Kubo
Chief Managing Executive Officer
Koei Ogawa
Chief Managing Executive Officer
Satoru Sumimoto
Chief Managing Executive Officer
Ayumu Takahashi
Managing Executive Officer
Kenta NakajoManaging Executive Officer
Akinori Nishida
Executive Officer
Susumu Takahashi
Executive Officer
Kenji Sato
Executive Officer
7) The Company shall appoint Special Audit & Supervisory Officers to assist the Audit & Supervisory Committee in the performanceof its duties. The Special Audit & Supervisory Officers are as follows.
Name
Position in the Company
Yasuko Morita
Special Audit & Supervisory Officer
Yuhei Kusano
Special Audit & Supervisory Officer- 59 -

(2) Description of personal, financial, or business relationships and other interests between the Company andoutside directors.
Ichiro Fukuzawa, an outside director, is the Full-time Statutory Auditor of All Nippon Airways Co. There aretransactions between the Company and All Nippon Airways Co., including a lease agreement for the passenger terminalbuilding at Haneda Airport.
Outside Director Yukihiro Kawamata is the President and Representative Director of Keikyu Corporation. The
Company and Keikyu Corporation have entered into transactions such as facility management consignment.
Outside Director Yuji Saito is the Executive Vice President and Representative Director of Japan Airlines Co. The
Company has transactions with Japan Airlines Corporation, including a lease agreement for the passenger terminalbuilding at Haneda Airport.
Outside Director Keiji Kimura holds no concurrent positions with companies or organizations having interests in the
Company.
Outside Director Tamaki Kakizaki, a member of the Audit & Supervisory Committee, is an outside director of Keikyu
Corporation, and there are transactions such as facility management assignments between the Company and Keikyu
Corporation.
Outside Directors Ryoko Takeda and Kenji Iwasaki, who are members of the Audit & Supervisory Committee, do nothold concurrent positions with companies or organizations that have an interest in the Company.
All of these transactions are routine transactions with the respective companies, and neither the outside directors nor
the outside directors who are members of the Audit & Supervisory Committee have any direct interest in them.
Two outside directors, Keiji Kimura and Yukihiro Kawamata, and three outside directors, Tamaki Kakizaki, Ryoko
Takeda, and Kenji Iwasaki, who are members of the Audit & Supervisory Committee, have been reported to the Tokyo
Stock Exchange, Inc. as independent directors.
The Company considers a director independent if the director does not fall into one of the following categories.
＜Criteria for Determining the Independence of Outside Directors]
The independence of outside directors shall be deemed not to be independent if any of the following criteria are met.
(a) A person who is currently or has been in the past 10 years an executive officer of the Company or its group companies.
(b) A person who is a major shareholder of the Company or an executive officer of a company that is a major shareholderof the Company.
(c) A person who is a major lender to the Company or an executive officer of a company that is a major lender to theCompany.
(d) A person who is a material counterparty to the Company, or an executive officer of a company that is a material
counterparty to the Company.
(e) A person who is a material business associate of the Company or an executive officer of a company that is a material
business associate of the Company.
(f) A person who has received a donation or grant over a specified amount from the Company, or a director and officer
of a corporation, association, or other organization that receives a donation or grant over a specified amount from theCompany.
(g) An attorney, certified public accountant, tax accountant, consultant, etc., who has received money or other financial
benefits over a specified amount from the Company, other than compensation for services as a director (if the person
receiving such financial benefits is a corporation, partnership, bureau or other organization, the person who is amember of such organization is included).
(h) The spouse or a relative within the second degree of a person (excluding insignificant persons) covered by criteria(a) through (g).
(i) A person who falls under any of criteria (b) to (g) in the past year.
Notes:
1) The term “executive person” as used in this Standard refers to the person defined in Article 2, Paragraph 3, Item 6 of the
Enforcement Regulations of the Companies Act.
2) The term “major shareholder” as used in Criterion 2. means a person (or company) that directly or indirectly holds 10% or moreof the total voting rights of the Company as of the end of the last fiscal year.
3) The term “major lender to the Company” as used in Criterion 3. means a financial institution or major creditor on which theCompany has relied to an indispensable and irreplaceable extent in raising funds during the last three fiscal years.
4) The term “a person (or company) whose major business partner is the Company” for Criterion 4 means a person (or company) thathas received payments from the Company equal to or greater than 2% of the person’s (or company’s) annual consolidated revenues
for the last three fiscal years.
5) The term “a person (or company) that is a major business partner of the Company” in Criterion 5 means a person (or company)that has made payments to the Company of 2% or more of the Company’s annual consolidated operating revenues in the last threefiscal years.

- 60 -

6) For Criterion 6, “a certain amount” means the greater of 10 million yen per year on average over the last three fiscal years or 30%of the organization’s average annual total expenses over the last three fiscal years.
7) For Criterion 7, “a certain amount” means the greater of 10 million yen per year or 2% of the annual sales of the person (or theannual consolidated sales of the organization if it is a corporation, partnership, bureau or other organization) for the last three fiscal
years.
8) In Criterion 8, the term “Immaterial” refers to persons who fall under the category of executive officers in Criterion 1 through 6,
except for those at the level of director or general manager of each company or business partner, etc., who are considered immaterial,and concerning persons who fall under the category of “the person belonging to such organization” in Criterion 7, persons otherthan certified public accountants affiliated with each accounting firm and attorneys (including so-called associates) affiliated witheach law firm are considered immaterial.
9) Matters other than those covered by these Standards that may have a significant impact on the determination of independence
should be dealt with flexibly.
(Minor criteria for description)
The Company has established the following minor criteria for attribute information of independent outside directors: the criteria
for loans and transactions under criteria 3) through 5) are less than 1% of the Company’s non-consolidated operating profit for theprevious fiscal year, and the criteria for donations under 6) are less than 10 million yen.

(3) The functions and roles of outside directors in the governance of the Company; the interrelationship between
the outside directors’ oversight or review and the internal audit, Audit & Supervisory Committee audit, andfinancial statement audit functions; and the relationship with the internal control function.
The outside directors of the Company attend meetings of the Board of Directors, etc., which are generally held once amonth, to discuss management matters and to monitor and supervise the management situation of the Company from an
objective perspective based on their rich experience and broad insight.
We believe that Outside Director Keiji Kimura can contribute to improving the effectiveness of the Board of Directors
by supervising management based on an objective viewpoint independent of the execution of business operations,
utilizing his extensive experience and insight as a manager and his broad insight as a representative director of a company
engaged in real estate and other businesses in the past.
As for Outside Director Ichiro Fukuzawa, he has served as a representative director of a company engaged in the airtransportation business and has extensive experience and insight as a manager. We believe that he can contribute toimproving the effectiveness of the Board of Directors by utilizing this experience and insight to oversee managementfrom an objective viewpoint independent of the conduct of business.
As for Outside Director Yukihiro Kawamata, he has served as a representative director of companies engaged intransportation and real estate businesses, etc., and has extensive experience and insight as a manager. We believe that hecan contribute to improving the effectiveness of the Board of Directors by utilizing such experience and insight tosupervise management from an objective perspective independent of the conduct of business operations.
We believe that Yuji Saito, an outside director, can be expected to contribute to improving the effectiveness of the Boardof Directors by supervising management based on an objective viewpoint independent of the conduct of business
operations, utilizing his rich experience and insight as a manager and his broad insight as a representative director of acompany engaged in the air transportation business, etc.
Outside Director Tamaki Kakizaki, who is a member of the Audit & Supervisory Committee, has no previous
experience in management other than as an outside director. However, we believe that given her extensive experience andhigh-level insight as an expert in internal control and corporate governance, she can be expected to appropriately examineand supervise the conduct of the Company’s business.
As for Ryoko Takeda, an outside director who is a member of the Audit & Supervisory Committee, she has noexperience in management other than as an outside director in the past. However, she has extensive experience and insight
as a lawyer, and we believe that she can be expected to appropriately audit and supervise the Company’s management by
utilizing such experience and insight.
Kenji Iwasaki, an Outside Director who is a member of the Audit & Supervisory Committee and the Supervisory Board,
was in charge of corporate planning and other departments of a company engaged in the non-life insurance business inthe past and has extensive experience and insight through such duties.
Outside directors, specially assigned Audit & Supervisory Committee members, and the auditor exchange opinions on
audits at the audit report meeting held at the end of each quarterly accounting period, and also engage in cooperation
through discussions, as necessary. In addition, the Internal Audit Office has been established at the Company’s head office
as an internal audit department, and it strives for information sharing and cooperation by exchanging opinions with outside
directors who are members of the Audit & Supervisory Committee and specially assigned officers for auditing, etc., on
the formulation of audit plans and audit results as appropriate.

- 61 -

C. Conditions of Audits(1) Audit & Supervisory Committee Members’ Audit
The Audit & Supervisory Committee of the Company consists of three directors who are members of the Audit &Supervisory Committee. Ms. Tamaki Kakizaki has extensive knowledge of legal matters as an expert in internal control
and corporate governance, Ms. Ryoko Takeda has extensive experience and broad insight as a lawyer and has extensive
knowledge of finance and accounting, and Mr. Kenji Iwasaki has extensive experience and insight as a business executive
and has extensive knowledge of finance and accounting. Mr. Koji Iwai, who retired on June 28, 2023, has extensive
experience and insight as a business executive.
In addition, the Company ensures the effectiveness of the audits by appointing Special Audit & Supervisory officers toassist the Audit & Supervisory Committee in the performance of its duties, who shall perform their duties under the
direction and at the direction of the Audit & Supervisory Committee. The appointment of any Special Audit & Supervisory
officer is subject to the approval of the Audit & Supervisory Committee.
The Audit & Supervisory Committee held 11 meetings during the year and the attendance of the individual members of
the Audit & Supervisory Committee was as follows.
Name
Position in the Company
Attendance (11 total meetings)
Tamaki Kakizaki
Outside Director, Audit & Supervisory Committee Member
11 times
Ryoko Takeda
Outside Director, Audit & Supervisory Committee Member
11 times
Kenji Iwasaki
Outside Director, Audit & Supervisory Committee Member
7 times (Note)Koji Iwai
Outside Director, Audit & Supervisory Committee Member
4 times (Note)
Note: The attendance of Director and Audit & Supervisory Committee member Koji Iwai covers the Audit & Supervisory Committee
meetings held before his resignation on June 28, 2023, and the attendance of Director and Audit & Supervisory Committee
member Kenji Iwasaki covers the meetings held after his appointment on June 28, 2023. The average duration of Audit &Supervisory Committee meetings is approximately 2 hours.

The main matters considered by the Audit & Supervisory Committee are the determination of the annual audit plan of
the Audit & Supervisory Committee, the approval of proposals for the appointment of directors who are members of the
Audit & Supervisory Committee, the determination of opinions on the appointment, etc., and compensation, etc., of
directors (excluding members of the Audit & Supervisory Committee), and the preparation of the audit report.
In addition, the Audit & Supervisory Committee considers matters decided by the Audit & Supervisory Committee,
such as deciding on the content of proposals for the appointment, dismissal, or non-reappointment of accounting auditors,
and approving the compensation, etc., of the accounting auditors.
At the Audit & Supervisory Committee meetings, each member of the Audit & Supervisory Committee monitors thelegality and propriety of the management’s business conduct and the transparency and soundness of the management byattending the meetings of the Board of Directors and other important meetings and by monitoring and reviewing theestablishment and operation of the internal control systems.
In addition, specially assigned audit officers attended weekly management meetings and group management meetings,
etc., reviewed important approval documents, interviewed directors, etc. about the performance of their duties, visited
business sites and subsidiaries, etc., and reported to the Audit & Supervisory Committee, as necessary.
In addition, the Company closely cooperates with the accounting auditor by receiving an explanation of the audit planat the beginning of the fiscal year, hearing the status of the audit as appropriate during the fiscal year, and receiving areport on the audit results at the end of the fiscal year.
The Company receives reports from the Internal Audit Department on the formulation of audit plans and audit results,
and exchanges views with the Internal Audit Department as appropriate, to share information and promote cooperation.

- 62 -

(2) Internal Audit
The Internal Audit Department, which consists of 4 members and reports directly to the President, conducts operational
audits of each division of the Company, including consolidated subsidiaries, based on the annual audit plan. The
department examines the legality and appropriateness of business operations in each division, evaluates the effectivenessof internal controls, and assesses the status of risk management. In the current fiscal year, the audit was conducted on thestatus of sustainability promotion initiatives.
To ensure the effectiveness of internal audits, the Company provides feedback to the audited divisions and requests
prompt reports on their improvement measures and responses. The results are reported to the President, Representative
Director, Executive Committee, and Board of Directors as appropriate.
Additionally, the Internal Audit Department reports to the Audit & Supervisory Committee regarding the developmentof audit plans and the results of audits. They also exchange opinions as needed to share information and promote
cooperation. The Internal Audit Department, Audit & Supervisory Committee, Special Audit & Supervisory officers, andaccounting auditors collaborate by exchanging opinions when necessary.
Regarding compliance with the internal control reporting system for financial reporting based on the Financial
Instruments and Exchange Act, we have established an Internal Control Office to promote these activities and evaluate
the status of maintenance and operation of internal control systems of the Company and its subsidiaries.
(3) Accounting Audit(a) Name of Audit Firm
EY Ernst & Young ShinNihon LLC(b) Continuous audit period
1968 and later
Note:1) The above audit period is as long as the Company can investigate, and the actual audit period may be longer than the above period.
2) The rotation of the managing partners is properly implemented, and the first managing partner has not participated in the audit for
more than 5 consecutive fiscal years and the other managing partners have not participated in the audit for more than 7 consecutive
fiscal years.

(c) Certified Public Accountants who performed services
Hirohisa Fukuda (number of years of continuous auditing: 5 fiscal years) and Masahiro Fujimori (number of years ofcontinuous auditing: 1 fiscal year).
(d) Composition of Audit Assistants
The number of auditing assistants is 3 certified public accountants and 17 other persons.
(e) Policy and rationale for the selection of the audit firm
The Audit & Supervisory Committee selected the auditor after confirming that the auditor does not fall under any of
the items listed in Article 340, Paragraph 1 of the Companies Act and that the auditor has a system in place to audit theGroup’s business activities in an integrated manner, taking into account the independence, expertise, and audit qualityof the audit firm.
EY Ernst & Young ShinNihon LLC was selected as the accounting auditor of the Company because it has the expertiseand knowledge required of an accounting auditor of the Company, and based on its track record, there are no problems
with its competence and independence.
If the Company’s Audit & Supervisory Committee determines that it is necessary, for example, if there is a problem
with the performance of duties by the auditor, it will decide on the content of a proposal to be submitted to the General
Meeting of Shareholders regarding the dismissal or non-reappointment of the auditor. In addition, if the accounting
auditor is deemed to fall under any of the items of Article 340, Paragraph 1 of the Companies Act, the Company will
dismiss the accounting auditor based on the unanimous consent of all members of the Audit & Supervisory Committee.
In such case, the appointed member of the Audit & Supervisory Committee shall report the dismissal of the auditor andthe reasons for it at the first general meeting of shareholders to be convened after the dismissal.
(f) Audit & Supervisory Committee Evaluation of the Audit Firm
The Audit & Supervisory Committee strictly evaluated the quality control system, audit system, audit implementation
status, and audit fees of the accounting auditor based on the evaluation standards for accounting auditors established by
the Company, taking into consideration the results of interviews with relevant departments within the Company, anddetermined that EY Ernst & Young ShinNihon LLC is appropriate and adequate as the accounting auditor.

- 63 -

(4) Details of audit fees(a) Compensation to certified public accountants

Classification

Previous consolidated fiscal year
Compensation based
Compensation foron audit attestation
non-audit services
services (Thousands(Thousands of yen)of yen)63,50025,900-

The Company
Consolidated
subsidiaries
Total
89,400Note: Non-audit services provided to the Company are not applicable.

Current Consolidated Fiscal Year
Compensation based
Compensation foron audit attestation
non-audit services
services (Thousands(Thousands of yen)of yen)61,22427,900--89,124-(b) Compensation to organizations belonging to the same network as the auditing CPAs
Not applicable.
(c) Details of compensation based on other important audit attestation services
Not applicable.
(d) Policy for Determining Audit Fees
Not applicable, but audit fees are determined based on the number of audit hours and other factors.
(e) Reasons for the Audit & Supervisory Committee’s approval of the audit fees
The Audit & Supervisory Committee approved the amount of compensation, to be paid to the auditor under Article
399, Paragraphs 1 and 3 of the Companies Act, after the necessary review of the appropriateness of the content of theaudit plan, the performance of duties by the auditor and the basis for calculating the fee estimate.

- 64 -

D. Compensation of Directors(1) Matters relating to the policy for determining the amount of compensation for directors, or the method for
calculating the amount of compensation
The Company adopted the Company with Audit & Supervisory Committee System by resolution of the 78th Ordinary
General Meeting of Shareholders held on June 24, 2022. The maximum amount of compensation for 12 directors(including 4 outside directors), excluding the Audit & Supervisory Committee members, is ¥450 million per year(including ¥48 million for outside directors) under the resolution of the said Ordinary General Meeting of Shareholders.
The maximum amount of compensation for 3 directors who are members of the Audit & Supervisory Committee, basedon the resolution of the same Ordinary General Meeting of Shareholders, is 80 million yen per year.
The basic policy of the Company in determining the amount of compensation for directors or the method of calculation
thereof is to further motivate directors to contribute to the continuous improvement of the Company’s businessperformance and value over the medium to long term and to ensure objectivity and transparency in the decision-making
process. This policy is discussed and decided by the Board of Directors after consultation with the Remuneration Advisory
Committee.
The Remuneration Advisory Committee is composed of a majority of independent directors and executive officers toensure the transparency, appropriateness, and objectivity of the compensation of directors, etc. The Committee meets inprinciple once a year. The Committee fully deliberates on compensation drafts and submits them to the Board of Directors.
The amount of compensation for each Audit & Supervisory Committee Member is determined through discussions among
the Audit & Supervisory Committee Members.
(2) Performance-related compensation matters
The ratio of fixed to performance-based compensation of the Company’s Directors (excluding Outside Directors andAudit & Supervisory Committee Members) is based on the compensation levels of companies in industries and businesscategories related to those of the Company and companies of similar business size as the Company as benchmarks.
Outside Directors and Audit & Supervisory Committee Members only receive a monthly fixed compensation.
The amount of short-term performance-based compensation for directors (excluding outside directors and Audit &Supervisory Committee members) is calculated based on consolidated operating revenue, operating profit, ordinary profit,
and net profit attributable to owners of the parent as indicators, taking into account the overall status of budget
achievement and other factors to ensure consistency with management strategies, including the medium-term businessplan, and to ensure linkage with shareholders’ profits. In addition, the compensation of senior managing directors andexecutive officers and below is based on the achievement of individual goals set by their responsibilities based on key
measures, etc. for the respective fiscal year.
For the current fiscal year, the target for indicators related to incentive compensation is the achievement of budgeted
consolidated operating revenue, operating profit, ordinary profit, and net profit attributable to owners of the parent.
Consolidated operating revenue, operating profit, ordinary profit, and net profit attributable to owners of the parent forthe current fiscal year are shown below. All of the indicators related to performance-based compensation for the current
fiscal year improved from the previous year and exceeded the budget (revenue and profit).
(in million yen)
Current fiscal year

Operating revenue

operating profit

217,578

29,527

ordinary profit
27,225net profit attributableto owners of the parent
19,255Furthermore, the medium- to long-term performance-linked compensation introduced by the resolution of theCompany’s 80th annual general meeting of shareholders, held on June 26, 2024, employs the mechanism of the Board
Incentive Plan (BIP) trust for directors’ compensation. The medium- to long-term performance-linked compensation is a
non-monetary form of compensation. The Company has a system in place whereby the Company issues shares to directors
and executive officers (excluding outside directors and non-residents of Japan) in line with the achievement of key
financial and non-financial performance indicators set out in the Mid-term Management Plan, as well as other indicators
determined by the Board of Directors. Furthermore, directors and executive officers (excluding outside directors and nonresidents of Japan) will receive an amount equivalent to the cash proceeds from the conversion of the Company’s shares,by the share delivery regulations approved by the Board of Directors.

- 65 -

(3) Matters relating to the policy for determining the content of compensation for each director(a) Method of determining the policy for determining the content of compensation for each director
After receiving the report of the Remuneration Advisory Committee, the Board of Directors of the Company shalldeliberate and review the report and, as described in (b) below, determine the policy for determining the content ofcompensation, for each director (hereinafter referred to as the “Determination Policy”).
(b) Summary of the Contents of the Determination Policy
The compensation of the members of the Board of Directors of the Company (excluding the members of the Audit &Supervisory Committee) consists of a monthly fixed compensation and an annual performance-related compensation.
The ratio of fixed to performance-based compensation is based on benchmark compensation levels of companies inindustries and business categories similar to those of the Company and companies of similar size to the Company. The
amount of compensation for each member of the Audit & Supervisory Committee is determined by discussion among
the members of the Audit & Supervisory Committee. For non-executive directors and members of the Audit &Supervisory Committee, only a monthly fixed compensation is determined.
The amount of performance-based compensation for directors (excluding outside directors and Audit & Supervisorycommittee members) is calculated based on consolidated operating revenue, operating profit, ordinary profit, and net
profit attributable to owners of the parent as indicators, taking into account the overall status of budget achievement andother factors, to ensure consistency with management strategies such as the medium-term business plan and to ensure
linkage with shareholders’ interests. In addition, the compensation of senior managing directors and executive officers
below is based on the achievement of individual targets set by their responsibilities based on key measures for the
relevant fiscal year. The compensation for each director (excluding the Audit & Supervisory Committee members) isdetermined by the Chairperson of the Board of Directors and CEO, who has been granted discretionary powers in thisregard by a resolution of the Board of Directors. To ensure the proper exercise of this authority, the Company consults
the Remuneration Advisory Committee on the draft compensation plan, and based on the Committee’s report, the Boardof Directors deliberates on the plan to ensure sufficient transparency, appropriateness, and objectivity in determining theamount of compensation.
(c) Reasons why the Board of Directors has determined that each director’s compensation for the current year is
consistent with the Determination Policy
In determining the details of compensation for each director (excluding members of the Audit & Supervisory
Committee), the Company consults the Remuneration Advisory Committee on a compensation proposal consisting ofmonthly fixed compensation and annual performance-based compensation. For non-executive directors, only themonthly fixed fee is paid. The Remuneration Advisory Committee reviews and makes specific recommendations fromvarious perspectives, including consistency with the Determination Policy, and the Board of Directors deliberates basedon the recommendations, and the Chairperson and CEO make decisions based on a discretionary resolution of the Boardof Directors, and therefore the details of the compensation of directors (excluding members of the Audit & Supervisory
Committee) for the current fiscal year are by the Determination Policy.
(4) Matters relating to the delegation of authority to determine the content of individual directors’ compensation.
In the current fiscal year, at the Board of Directors’ meeting held on June 28, 2023, it was decided that Isao Takashiro,
Chairperson and CEO (Chairperson of the Board of Directors and Chairperson of the Executive Strategy Council), would
be entrusted with the task of determining the specific details of the amount of individual director compensation.
The content of this discretion is to determine the amount of fixed compensation for each member of the Board of
Directors (excluding members of the Audit & Supervisory Committee) and the amount of incentive compensation by thelevel of achievement of the consolidated budget and, in the case of senior managing directors and below, taking into
account the assessment of the level of achievement of individual objectives. The reason for this discretion is that the
Chairperson and CEO are in the best position to evaluate the business activities of each member of the Board (excluding
members of the Audit & Supervisory Committee) from a bird’s eye view of the consolidated business results. To ensurethat such authority is properly exercised by the Chairperson and CEO, the amount of compensation for each Director,
within the limit of the total amount of compensation resolved by the General Meeting of Shareholders, is determined bysubmitting to the Remuneration Advisory Committee a draft compensation proposal consisting of a monthly fixedcompensation and an annual performance-based compensation, and based on its recommendation, the Board of Directors
deliberates on the proposal. The Board of Directors discusses the proposal and, after ensuring sufficient transparency,
appropriateness, and objectivity, the Chairperson and CEO decide based on a discretionary decision of the Board of
Directors.

- 66 -

(5) Matters relating to the policy for determining the details of compensation for individual directors after June
26, 2024
By the introduction of the performance-linked stock compensation system resolved at the 80th Ordinary General
Meeting of Shareholders held on June 26, 2024, the Company partially revised the “Details of Policy and Method of
Determining the Amount and Calculation Method of Compensation, for Directors and executive officers” as of the samedate, as follows. (The revised policy is hereinafter referred to as the “New Determination Policy.”)(a) Method of determining the policy for determining the content of compensation for each director
After receiving the report of the Remuneration Advisory Committee, the Company’s Board of Directors deliberates
and reviews it and determines the new decision-making policy as described in (b) below.
(b) Contents of the new decision-making policy
The Company’s fundamental policy regarding the determination of compensation for directors and the method of
calculation thereof is to provide an incentive for directors to contribute to the continuous improvement of businessperformance and corporate value over the medium to long term while ensuring objectivity and transparency in thedecision-making process. This basic policy is subject to deliberation, review, and decision by the Board of Directors
following deliberation by the Remuneration Advisory Committee.
The compensation of the Company’s Directors (excluding members of the Audit and Supervisory Board) (excluding
outside directors) is composed of fixed compensation, performance-linked compensation, and non-monetarycompensation not linked to performance. Performance-linked compensation is comprised of short-term and medium- tolong-term components. The ratio of fixed compensation to performance-linked compensation is based on compensationlevels benchmarked to companies in industries and business categories with which the Company is in direct competition,
as well as companies of a similar size to the Company. Outside directors receive only a monthly fixed compensation.
The amount of individual compensation for each director of the Company is determined by Isao Takashiro,
Chairperson of the Board and CEO, by a resolution of the Board of Directors. The Board of Directors considers the
proposals and makes decisions in a transparent, appropriate, and objective manner.
The amount of fixed compensation for each director of the Company is determined by their position, based oncomprehensive consideration of compensation levels set by companies in related industries and business categories, aswell as companies of a similar scale to the Company. This is done after deliberation by the Board of Directors, which
receives a report from the Remuneration Advisory Committee.
The amount of short-term performance-linked compensation for directors (excluding outside directors) is calculated
based on several key indicators, including consolidated operating revenue, operating profit, ordinary profit, and net profit
attributable to owners of the parent. These indicators are used to ensure consistency with the medium-term management
plan and other management strategies, as well as to align compensation with shareholder profits. Furthermore, for senior
managing directors and executive officers and below, compensation is based on the achievement of individual targets
set in line with their responsibilities based on important measures for the relevant fiscal year.
The medium- to long-term performance-linked compensation is a non-monetary form of compensation that leverages
the Board Incentive Plan (BIP) trust for directors’ compensation. This structure is designed to motivate directors tocontribute to the enhancement of the Group’s medium- to long-term performance and corporate value. The BIP Trust isa system under which eligible directors (excluding outside directors and non-residents of Japan) are compensated fortheir services through a BIP plan approved by the Board of Directors. The Company will grant eligible directors(excluding outside directors and non-residents of Japan) several shares of the Company’s stock and a cash payment
equivalent to the conversion value of the Company’s stock (hereinafter referred to as the “Company’s stock, etc.”) by
the stock issuance rules approved by the Board of Directors. The number of shares and cash payments will be calculated
in proportion to the number of points based on the director’s position, term in office, and degree of achievement ofimportant financial and non-financial indicators for performance targets in the medium-term management plan and otherindicators set by the Board of Directors. The Company’s shares and the cash proceeds from their conversion (hereinafterreferred to as “company shares, etc.”) are delivered and paid.
Non-monetary compensation that is not performance-linked also makes use of the BIP trust system for thecompensation of directors and corporate auditors. By the stock issuance rules approved by the Board of Directors, theCompany’s shares, etc. are delivered and paid in proportion to the number of points granted based on position and tenureof office.
Fixed compensation is paid monthly, short-term performance-linked compensation is paid annually, and medium- tolong-term performance-linked compensation and non-monetary compensation not linked to performance is paid uponretirement. If a director is found to have committed serious misconduct, etc., the Company may forfeit all or part of themedium- to long-term performance-linked compensation and non-monetary compensation not linked to businessperformance granted to such director (malus), or demand that such director return an amount of money equivalent to theCompany shares, etc. issued to him (claw-back).

- 67 -

(6) Total amount of compensation by director classification, total amount of compensation by type of compensation,and number of directors subject to compensation

Classification of Officers

Total amount ofcompensation(Millions of
yen)
353

Total amount of compensation by type(Millions of yen)
fixed
performance-linked
compensationcompensation
272
81

Eligible
Number of
directors(persons)

Directors (excluding Audit & Supervisory
10
Committee members and outside directors)
Directors (Audit & Supervisory Committee
members) (excluding outside directors)
Outside Directors
73
73
9Notes:
1) The maximum amount of director’s compensation according to the resolution of the General Meeting of Shareholders (resolution of
the 78th Ordinary General Meeting of Shareholders held on June 24, 2022) for 12 directors (including 4 outside directors, but
excluding Audit & Supervisory Committee members) is 450 million yen per year (including 48 million yen for outside directors).
2) The maximum amount of compensation for directors of the Audit & Supervisory Committee members, as resolved by the General
Meeting of Shareholders (resolution of the 78th Ordinary General Meeting of Shareholders held on June 24, 2022), is 80 million yen
per year for 4 directors who are members of the Audit & Supervisory Committee.
3) At the 80th Ordinary General Meeting of Shareholders held on June 26, 2024, a resolution was passed to introduce a performancebased stock compensation plan for the Company’s Directors (excluding Audit & Supervisory Committee members, Outside Directors,
and non-residents of Japan). The maximum amount of money that the Company is willing to contribute is 350 million yen for eachsubject period (in principle, the fiscal year covered by the Company’s medium-term management plan). The maximum number ofshares of the Company’s stock that may be delivered to Directors is 78,000 shares for each subject period. There are 8 Directors
about the resolution of the General Meeting of Shareholders.
4) The figure shown above represents bonuses to 8 directors, which were recorded as expenses in the fiscal year under review and arelinked to performance.

- 68 -

E. Shareholdings(1) Classification of investment securities
The Company classifies investment securities by holding purpose, for pure investment, or other than pure investment.
Pure investment means that the Company owns shares only for returns from stock price fluctuations and/or dividends.
(2) Investment securities held for purposes other than pure investment(a) The policy of holding listed stocks
In light of avoiding risks resulting from stock price fluctuations and improving asset efficiency, the Company owns
no listed shares except for the cases in which business relationships with invested companies and/or businesscooperation with the Company are needed.
(b) Number of stock names and amount on the balance sheet
Unlisted stocks
Other than unlisted stocks

Number of stock names
16
10

Amount on the balance sheet (Millions of yen)
5,225
7,541

[Information on stocks whose number of shares increased in the fiscal year ended March 31, 2024]
Number of stock names
Total acquisition cost per share increase (millions of yen)
Unlisted stocks
2
239
Other than unlisted stocks
3
1,293
Notes:
1) Stocks whose number of shares increased or decreased do not include changes due to reverse stock splits, stock splits, stocktransfers, stock exchanges, mergers, etc.
2) The rationale behind the increase in unlisted stocks is to strengthen cooperation within the cooperative business sector.
3) The rationale behind the increase in unlisted stocks is to maintain business relationships and strengthen collaboration, thereby
fostering a culture of trust.

- 69 -

(c) Stock name, number of shares, amount on the balance sheet of specified investment securities, and deemedshareholdings[Specified Investment Stocks]

Company name

Number of shares
outstanding (shares)
Balance sheet
amount (million yen)
Current
Previous
fiscalfiscalyear
year
693,395

637,158

ANA Holdings, Inc.
(Note 1)

2,225

1,832

528,000

528,000

Japan Airlines Co.

Sumitomo Realty &Development Co., Ltd.
(Note 2)

1,540

1,363

255,000

-

1,478

-

640,000

640,000

Keikyu Corporation

East Japan
Company

RailwayMizuhoGroup, Inc.

Financial(Note 1)891

805

78,20078,200684

573

101,341

98,116308

184

92,00092,000

Bic Camera Co.
117

74,418102

74,418SAN-AI OBBLI CO.,
LTD.
155

102

Purpose of holding and outline of business alliance

Shareholding in the
Company(Purpose of the holding company)
To further strengthen cooperation and build trust, mainly in the field offacility management operations.
(Outline of Business Alliance)
Transaction of Lease Agreement for Haneda Airport Passenger Terminal
Building with the group companies.

possession(Purpose of the holding company)
To further strengthen cooperation and build trust, mainly in the field offacility management operations.
(Outline of Business Alliance)
Transaction of Lease Agreement for Haneda Airport Passenger Terminal
Building

possession(Purpose of the holding company)
Further, strengthens collaboration and builds trust.
(Outline of Business Alliance)
Strengthening Future Collaboration in Expanding International Demandpossession(Purpose of the holding company)
To further strengthen cooperation and build trust, mainly in the field offacility management operations.
(Outline of Business Alliance)
Transaction of Lease Agreement for Haneda Airport Passenger Terminal
Building

possession(Purpose of the holding company)
Further, strengthens collaboration and builds trust.
(Outline of Business Alliance)
Strengthen future coordination of ground-based access from airports

possession(Purpose of the holding company)
Facilitate and stabilize the Group’s financial activities.
(Outline of Business Alliance)
Principal Lenders to the Company

possession(Purpose of the holding company)
Continue to strengthen cooperation and build trust, especially inmerchandise sales.
(Outline of Business Alliance)
Established a joint venture to operate merchandise stores at Haneda Airport
Terminal

Possession(Purpose of the holding company)
To further strengthen cooperation and build trust, mainly in the field offacility management operations.
(Outline of Business Alliance)
Transaction of Lease Agreement for Haneda Airport Passenger Terminal
Building

Possession- 70 -

Company name

Number of shares
outstanding (shares)
Balance sheet
amount (million yen)
Current
Previous
fiscalfiscalyear
year
146,410

146,410

Airport Facilities Co.,Ltd.

SapporoLimited

Holdings

88

80

8,200

8,200

49

27

Purpose of holding and outline of business alliance

Shareholding in the
Company(Purpose of the holding company)
To further strengthen cooperation and build trust, mainly in the field offacility management operations.
(Outline of Business Alliance)
Transactions with the group companies for water supply and drainage
services related to the passenger terminal buildings at Haneda Airport

Possession(Purpose of the holding company)
Strengthen collaboration and build trust, especially in food and beverage.
(Outline of Business Alliance)
Transaction of Lease Agreement for Haneda Airport Passenger Terminal
Building with the Company’s group companies.

Possession

Notes:
1) The rationale behind the increase in shares of ANA Holdings, Inc. and Mizuho Financial Group, Inc. is to maintain an ongoing
business relationship.
2) The objective of the increase in shares of the Sumitomo Realty & Development Co., Ltd. is to reinforce collaboration and establish
a foundation of trust.
(quantitative effect of holding)Since it is difficult to describe the effect of quantitative holdings of certain investment shares, the Company describes the methodby which it has reviewed the reasons for the holdings. The Board of Directors of the Company has reviewed the significance of policy
shareholdings for individual policy shareholdings, and all of the issuers of such policy shareholdings have transactions with theCompany, such as leasing facilities, etc., or borrowing funds, and given their business relationship, it is necessary to further strengthen
cooperation and establish a relationship of trust, The Company has confirmed that all of the shareholdings are reasonable in light of
its shareholding policy. In addition, the Board of Directors of the Company has confirmed that all of the aforementioned shareholdings
are reasonable in light of the shareholding policy, considering quantitative information such as TSR (Total Shareholder Return), as
well as the importance of the shares in terms of business strategy, business relationships, and other factors.

[Deemed holding stocks]

Company name

Number of shares
outstanding (shares)
Balance sheet
amount (million yen)
Current
Previous
fiscalfiscalyear
year
900,000

900,000

ANA Holdings, Inc.
2,889

2,588

Purpose of holding and outline of business alliance

Shareholding in the
Company(Purpose of the holding company)
Trust assets are held as a pension trust, which is authorized to instruct how
to exercise voting rights.
(Outline of Business Alliance)
Transaction of Lease Agreement for Haneda Airport Passenger Terminal
Building with the group companies.

possession(quantitative effect of holding)
Because it is difficult to describe the quantitative effect of the Company’s holdings of deemed shareholdings, the Company will
describe the method by which it has reviewed the reasonableness of the holdings. The Board of Directors of the Company has reviewed
the significance of each deemed shareholding, and the issuer of such deemed shareholding has transactions with the Company, suchas leasing facilities, in light of the business relationship, it is necessary to further strengthen cooperation and establish a relationshipof trust, so the Company has confirmed that all deemed shareholdings are reasonable in light of its holding policy. The Company has
confirmed that it is reasonable to hold these shares in light of the holding policy.
Note: Specified investment stocks and deemed holding stocks are not combined at the stage of selecting the top stocks in terms ofbalance sheet amount.

- 71 -

(3) Investment securities held for pure investment
Number ofstock names
Other than unlisted stocks

Current fiscal year
Amount on the balance sheet(Millions of yen)
2
254

Current fiscal year
Total gain (loss) on sales(million yen)

Total dividend income(millions of yen)
Other than unlisted stocks

Previous fiscal year
Number ofAmount on the balancestock names
sheet (Millions of yen)
2
148

4

-

Total holding gains (losses)(millions of yen)
85(4) Investment securities for which the holding purpose has changed from pure investment to other than pureinvestment in the fiscal year ended March 31, 2024
Not applicable(5) Investment securities for which the holding purpose has changed from other than pure investment to pureinvestment in the fiscal year ended March 31, 2024
Not applicable- 72 -

Item 5. Financial Information
1. Basis of preparation of the consolidated financial statements and the non-consolidated financial statements(1) The consolidated financial statements of the Company are prepared by the “Regulations Concerning Terms, Forms
and Preparation Method of Consolidated Financial Statements” (Ministry of Finance Ordinance No. 28 of 1976,
hereinafter referred to as the “Regulations for Consolidated Financial Statements”).
(2) The Company’s financial statements are prepared by the “Regulations Concerning Terms, Forms and Preparation
Method of Financial Statements” (Ministry of Finance Ordinance No. 59 of 1963, hereinafter referred to as the“Regulations for Financial Statements”).
In addition, the Company falls under the category of a company filing special financial statements and prepares its
financial statements by Article 127 of the Regulations for Financial Statements, etc.
2. Audit certification
The consolidated financial statements of the Company for the consolidated fiscal year (from April 1, 2023, to March
31, 2024) and the non-consolidated financial statements of the Company for the fiscal year (from April 1, 2023, to
March 31, 2024) have been audited by EY Ernst & Young ShinNihon LLC by the provisions of Article 193-2-1 of the
Financial Instruments and Exchange Law.
3. Particular efforts to secure the appropriateness of the consolidated financial statements
The Company takes special measures to ensure the adequacy of its consolidated financial statements. Specifically, theCompany has joined the Financial Accounting Standards Foundation (FASF) and participates in training sessionsorganized by the FASF to establish a system that enables it to accurately respond to the content of accounting standards,
etc., or changes in accounting standards, etc., and participates in training sessions, etc., organized by the FASF.

- 73 -

1. Consolidated Financial Statements, and Others
A. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
FY2022

FY2023(As of March 31, 2023)(As of March 31, 2024)

ASSETS
Current assets
Cash and deposits

63,741

65,395

Accounts receivable

15,331

22,935

Securities

26,50020,000

Merchandise and finished products

4,283

7,850

323

357

Other current assets

4,865

4,335

Allowance for doubtful accounts

(57)

(118)

114,988

120,756

562,619567,151

Accumulated depreciation and impairment loss

(343,917)(362,651)

Buildings and structures (net)

218,701

204,499

Raw materials and stored goods

Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures

34,82235,199

Accumulated depreciation and impairment loss

(21,227)(23,255)

Machinery, equipment, and vehicles (net)13,595

11,944Land

12,876

12,907

Lease assets

3,574

3,663

Accumulated depreciation and impairment loss

(2,049)(2,497)

Lease assets (net)

1,525

1,165

Construction in progress

8,996

29,513

Other tangible fixed assets

70,65370,862(60,234)(60,960)

Machinery, equipment, and vehicles

Accumulated depreciation and impairment loss

10,418

9,901

266,114

269,932

Leasehold right

29,671

27,826

Other intangible fixed assets

2,139

3,415

Total intangible fixed assets

31,81031,242

Investment securities

17,254

22,248Deferred tax assets

12,232

10,919Retirement benefit asset

1,105

1,841

Other investments

3,450

3,682

Other tangible fixed assets (net)Total tangible fixed assets
Intangible fixed assets

Investments and other assets

Allowance for doubtful accounts

-

(199)

Total investments and other assets

34,04238,492331,967

339,667

446,955

460,423

Total fixed assets
TOTAL ASSETS- 74 -

(Millions of yen)
FY2022

FY2023(As of March 31, 2023)(As of March 31, 2024)

LIABILITIESCurrent liabilities
Accounts payable

7,172

11,908

Short-term borrowings

15,70916,615-

10,000Accrued expenses

12,15012,657

Income taxes payable

2,192

4,582

Provision for employees’ bonuses

1,627

2,279

Current portion of bonds payable

Provision for directors’ bonuses-

282

Other current liabilities

10,273

12,268

Total current liabilities

49,12570,594

Bonds

55,13944,988Long-term loans payable

Fixed liabilities
171,815

155,398

Lease liabilities

1,173

811

Deferred tax liabilities

16,31911,87957

31

Retirement benefit liability

4,562

4,208

Asset retirement obligations

628

636

Provision for directors’ retirement benefits

Other fixed liabilities

7,183

5,837

Total fixed liabilities

256,878

223,792

TOTAL LIABILITIES

306,004

294,386

Common stock

38,12638,126

Capital surplus

54,16054,160Retained earnings

56,942

72,379Treasury stock

(10)

(13)

149,217

164,652

Valuation difference on available-for-sale securities

1,695

3,018

Deferred gains or losses on hedges

(726)

(445)

Foreign currency translation adjustment

122

152

Remeasurements of defined benefit plans

(22)

794

Total accumulated other comprehensive income

1,069

3,520

NET ASSETS
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income

Non-controlling interests(9,335)(2,135)TOTAL NET ASSETS

140,951

166,036446,955

460,423

TOTAL LIABILITIES AND NET ASSETS- 75 -

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)
FY2022(from April 1, 2022
to March 31, 2023)

FY2023(from April 1, 2023
to March 31, 2024)

Operating revenues
Rent revenue

19,82920,020

Facility user charges revenue

29,32752,439Other revenues

14,394

19,866

Sale of merchandise

41,143110,989

Sale of food and beverage

8,355

14,263

Total operating revenues

113,050

217,578

Cost of sales of merchandise

23,92764,899

Cost of sales of food and beverage

5,158

7,974

Total cost of sales

29,08572,874

83,964

144,704

Salaries and wages

10,776

12,224

Provision for employees’ bonuses

1,548

2,200

-

284

812

670

Cost of sales

Gross profit
Selling, general and administrative expenses

Provision for directors’ bonuses
Retirement benefit expenses
Rent expenses

8,555

11,463

Outsourcing and commission

14,18924,019Depreciation expenses

28,95428,171Other costs and expenses

29,70736,141

94,543

115,176(10,579)

29,52721

65

Dividends income

64

164

Equity in earnings of affiliates

133

187

Contributions in aid of construction

268

186

Fee and commission income

251

287

Rental income from facilities

153

156

Miscellaneous income

1,040

355

Total non-operating income

1,933

1,404

2,991

2,942

Loss on retirement of fixed assets

276

433

Miscellaneous expenses

152

330

Total selling, general, and administrative expenses
Operating profit (loss)
Non-operating income
Interest income

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary profit (loss)- 76 -

3,419

3,706

(12,064)

27,225

(Millions of yen)
FY2022(from April 1, 2022
to March 31, 2023)

FY2023(from April 1, 2023
to March 31, 2024)

Extraordinary gains
National subsidies

58

118

Gains on sale of investment securities

20-

Total extraordinary gains

78

118

Extraordinary loss
Impairment loss

260-

Loss on valuation of investment securities

99

221

Loss on reduction entry of fixed assets

36

104

Total extraordinary loss

397

326

(12,383)

27,017

Profit (loss) before income taxes and non-controlling interests
Income taxes – current

1,743

4,920

Income taxes – deferred

1,561(3,879)

3,304

1,040

Net profit (loss) before non-controlling interests(15,687)

25,976

Net profit (loss) attributable to non-controlling interests(11,786)

6,721

Net profit (loss) attributable to owners of the parent(3,901)

19,255

Total income taxes- 77 -

Consolidated Statements of Comprehensive Income(Millions of yen)
FY2022(from April 1, 2022
to March 31, 2023)

FY2023(from April 1, 2023
to March 31, 2024)(15,687)

25,976

Valuation difference on available-for-sale securities

(828)

1,346

Deferred gains (losses) on hedges

949

688

Net profit (loss) before non-controlling interests
Other comprehensive income

Foreign currency translation adjustment

56

29

Remeasurements of defined benefit plans

439

871

15

(4)

631

2,930

(15,056)

28,906Comprehensive income attributable to owners of the parent(3,882)

21,706Comprehensive income attributable to non-controlling interests(11,174)

7,200

Share of other comprehensive income of affiliates accounted forusing the equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:- 78 -

(3) Consolidated Statements of Changes in Shareholders’ Equity[FY2022 (from April 1, 2022 to March 31, 2023)](Millions of yen)
Shareholders’ equity

Balance at the beginning of the current
periodChanges during the current period
Dividend from retained earnings
Net profit (loss) attributable to ownersof the parent
Purchase of treasury stock

Common stock

Capital surplus

38,12654,160Retainedearnings

Treasury stock

Total
shareholders’equity(9)153,120

60,843(3,901)(3,901)(1)

Changes of items other than shareholders’equity during the current period (net)Total changes during the current period
Balance at the end of the current period

(1)
-

-

-

(3,901)(1)(3,902)

38,12654,16056,942(10)

149,217

Accumulated other comprehensive income

Balance at the beginning of the current
periodChanges during the current period
Dividend from retained earnings
Net profit (loss) attributable to ownersof the parent
Purchase of treasury stock
Changes of items other than shareholders’equity during the current period (net)Total changes during the current period
Balance at the end of the current period

Balance at the beginning of the current
periodChanges during the current period
Dividend from retained earnings
Net profit (loss) attributable to owners of
the parent
Purchase of treasury stock
Changes of items other than shareholders’equity during the current period (net)Total changes during the current period
Balance at the end of the current period

Foreigncurrencytranslation
adjustment

Total
Remeasurements accumulatedof defined benefit
other
plans
comprehensive
incomeValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges2,526(1,115)

66

(426)

1,050

(830)

388

56

403

18

(830)
1,695

388
(726)

56
122

403
(22)

18
1,069

Non-controllinginterests

Total net assets

1,838

156,009(3,901)(1)(11,174)(11,155)(11,174)(15,058)(9,335)140,951- 79 -

[FY2023 (from April 1, 2023 to March 31, 2024)](Millions of yen)
Shareholders’ equity

Balance at the beginning of the current
periodChanges during the current period
Dividend from retained earnings
Net profit (loss) attributable to ownersof the parent
Purchase of treasury stock

Common stock

Capital surplus

38,12654,160Retainedearnings

Treasury stock

Total
shareholders’equity(10)

149,21756,942(3,818)(3,818)19,255

19,255(2)

Changes of items other than shareholders’equity during the current period (net)Total changes during the current period
Balance at the end of the current period

(2)
-

-

-

15,437(2)

15,434

38,12654,16072,379(13)

164,652

Accumulated other comprehensive income

Balance at the beginning of the current
periodChanges during the current period
Dividend from retained earnings
Net profit (loss) attributable to ownersof the parent
Purchase of treasury stock
Changes of items other than shareholders’equity during the current period (net)Total changes during the current period
Balance at the end of the current period

Balance at the beginning of the current
periodChanges during the current period
Dividend from retained earnings
Net profit (loss) attributable to owners of
the parent
Purchase of treasury stock
Changes of items other than shareholders’equity during the current period (net)Total changes during the current period
Balance at the end of the current period

Foreigncurrencytranslation
adjustment

Total
Remeasurements accumulatedof defined benefit
other
plans
comprehensive
incomeValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

1,695

(726)

122

(22)

1,069

1,322

281

29

816

2,450

1,322
3,018

281
(445)

29
152

816
794

2,450
3,520

Non-controllinginterests

Total net assets(9,335)140,951(3,818)19,255
(2)

7,199

9,650

7,199

25,085(2,135)

166,036- 80 -

(4) Consolidated Statements of Cash Flows(Millions of yen)
FY2023(from April 1, 2023
to March 31, 2024)

FY2022(from April 1, 2022
to March 31, 2023)
Cash flows from operating activities
Profit (loss) before income taxes and minority interests(12,383)

27,017

Depreciation and amortization

29,022

28,232

Increase (decrease) in retirement benefit liability

327

139

Decrease (increase) in retirement benefit asset

(46)

(78)

Increase (decrease) in provision for employees’ bonuses

553

652

Increase (decrease) in provision for directors’ bonuses-

282Interest and dividend income

(85)

(230)

Interest expenses

2,991

2,942

Equity in losses (earnings) of affiliates

(133)

(187)

Loss (gain) on valuation of investment securities

99

221

Impairment loss

260-

Loss on retirement of tangible fixed assets

276

433

National subsidy

(58)

(118)

Loss on reduction of fixed assets

36

105

Decrease (increase) in accounts receivable – trade(9,922)(7,604)

Decrease (increase) in inventories

1,029(3,601)

911

584

Increase (decrease) in accounts payable – trade

5,215

4,735

Increase (decrease) in other current liabilities

1,169

(344)

Others(782)

157

Subtotal

18,48053,339123354(2,923)(3,333)

Decrease (increase) in other current assets

Interest and dividends received
Interest paid
Subsidy received

655

19

Income taxes refund (paid)(9)(2,618)16,32647,761

Net cash provided by (used in) operating activities
Cash flows from investing activities-(10,000)

Purchase of investment securities(500)(3,377)Purchase of tangible fixed assets

Purchase of securities(9,857)(27,662)

Payments for retirement of tangible fixed assets

(242)

(301)

Purchase of intangible fixed assets(378)(1,468)Proceeds from national subsidy

58

118

Other proceeds
Net cash provided by (used in) investing activities- 81 -

292(295)(10,627)(42,986)

(Millions of yen)
FY2023(from April 1, 2023
to March 31, 2024)

FY2022(from April 1, 2022
to March 31, 2023)
Cash flows from financing activities(100)

Net increase (decrease) of short-term borrowings-

Proceeds from long-term loans payable

883

985

Repayment of long-term loans payable(12,826)(16,281)

Repayments of Lease liabilities
Dividends paid to owners of the parent
Dividends paid to non-controlling interests
OthersNet cash provided by (used in) financing activities

(494)

(455)

-

(3,818)

(0)

(0)

(103)

(79)

(12,641)(19,649)

55

28

Increase (decrease) in cash and cash equivalents(6,887)(14,845)

Cash and cash equivalents at the beginning of the period

97,12890,241

Cash and cash equivalents at the end of the period

90,24175,395

Effect of exchange rate change on cash and cash equivalents- 82 -

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 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.
Tokyo International Air Terminal Corporation
Air BIC Inc.
Haneda Airport Enterprise Co., Ltd.
Haneda Airport Security Co., Ltd.
Haneda Passenger Service Co., Ltd.
Japan Airport Terminal Trading (Chengdu) Co., Ltd.
Lani Ke Akua Pacific Inc.
Sakura Shokai Co., Ltd.
Hamashin Co., Ltd.
Japan Airport Ground Handling Co., Ltd.
Kaikan Kaihatsu Co., Ltd.
(2) Number of non-consolidated subsidiaries: 5 companies
Names of non-consolidated subsidiaries
Global Service Co., Ltd.
Tsukiji Hamashin Co., Ltd.
Felix International LLC.
JAT Design International Inc.
Rock Island Tour Company, Ltd.
The 5 non-consolidated subsidiaries are excluded from the scope of consolidation since they are small in size, and their
total assets, operating revenues, net profit (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
AGP Corporation
Japan Airport Delica Inc.
Airport Transport Service Co., Ltd.
(2) The non-consolidated subsidiaries and Seikosha Co. and 11 other affiliated companies are not included in the scope of
the application of the equity method, since the aggregate amounts corresponding to the shares held by the Company of
those companies’ net profit (loss) and retained earnings do not have a significant impact on those of consolidated financial
statements.

- 83 -

3. Fiscal year of consolidated subsidiaries
Of consolidated subsidiaries, Japan Airport Terminal Trading (Chengdu) Co., Ltd. and LANI KE AKUA PACIFIC,
INC. end the fiscal year on December 31.
In preparing the consolidated financial statements, the financial statements as of the abovementioned closing date areused and necessary adjustments arising from important transactions during the period between the closing date and theconsolidated closing date are made.

4. Summary of significant accounting policies(1) Valuation standards and methods for important assets(a) Securities
1) Held-to-maturity securities are carried at cost.
2) Other securities
Other securities other than shares without fair values are stated at fair value based on the market value at the year-end,
with valuation differences included in net assets. The cost of securities sold is determined by the moving averagemethod.
Shares without fair values are stated at cost based on the moving average method.
For investments in limited liability investment partnerships and similar partnerships (deemed as securities under
Article 2, Paragraph 2 of the Financial Instruments and Exchange Act), the most recent financial statements available
according to the financial reporting date stipulated in the partnership agreement are used as the basis for calculating
the net amount equivalent to the Company’s interest.
(b) Derivatives
Derivative financial instruments are stated at fair value.
(c) Inventories
At the Company and its major consolidated subsidiaries, inventories are principally stated at cost determined by theretail method (the book value of inventories in the balance sheet is written down when their profitability declines).
Certain consolidated subsidiaries use the last-purchase-price method (the book value of inventories in the balance sheet iswritten 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 isamortized 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 depreciated to zeroor residual value.
(3) Accounting policies for important allowances and provisions(a) Allowance for doubtful accounts
To prepare for losses from doubtful accounts, estimated uncollectible amounts are recorded, which are computed either
by using the historical default rate for normal receivables or by considering individual collectability for particular
receivables such as highly doubtful accounts.
(b) Provision for employees’ bonuses
To prepare for the payment of bonuses to employees, the estimated amount is recorded as a provision.
(c) Provision for directors’ bonuses
To prepare for the payment of bonuses to directors, the estimated amount is recorded as a provision.
(d) Provision for directors’ retirement benefits
To provide for future payments of retirement benefits to directors, certain consolidated subsidiaries record the amountthat would be required at the end of the fiscal period by their internal rules.

- 84 -

(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 averageremaining service years (5-10 years).
Actuarial gains and losses are amortized, beginning in the year following their occurrence, under the straight-line
method over a certain number of years within the average remaining service years (5-10 years).
(c) Adoption of simplified methods at small companies
Certain consolidated subsidiaries adopt a simplified method of using the amounts payable for the voluntary retirementof employees at fiscal year-end in calculating the retirement benefit liability and retirement benefit expenses.
(5) Recognition of significant revenues and costs
The Group is engaged in three business operations which are the facilities management operations, merchandise sales
operations, and food and beverage operations. The major obligations to be performed and the usual timing at which anentity satisfies such obligations in each of the business operations are as follows.
For transactions in which the Group’s role in providing goods or services to customers falls under the category ofagent, revenue is recognized as the net amount, the amount received from customers less the amount paid to suppliers.
(a) Facilities management
The facilities management operations are mainly engaged in the construction, management, and operation of passenger
terminals and leasing of real estate. Rent revenue consists mainly of office and store rent income, and is recognized by the“Accounting Standard for Lease Transactions” (ASBJ Statement No. 13, March 30, 2007) and relevant revised ASBJ
regulations.
Facility user charges revenues mainly consist of Passenger Service Facility Charge (PSFC) revenues. These revenues
are collected from passengers based on their use of passenger service facilities. The Group is obligated to use theserevenues to cover expenses related to facilities for the common use of passengers and to professionally manage andoperate the passenger terminals. Revenue is recognized when the air carrier completes the passenger air transportation
services, indicating that the performance obligation has been fulfilled.
Other revenues consist mainly of parking revenues, paid lounge sales, and advertising revenues. The performanceobligation is satisfied upon completion of the services such as provision of parking services, provision of lounge accessservices, and placement of advertisement. If the performance obligation is satisfied at a point in time, revenue isrecognized at the time the services are provided. If the performance obligation is satisfied over a certain period, revenue isrecognized on a straight-line basis over the period the service is provided.
(b) Merchandise sales
The merchandise sales operations are mainly engaged in the operation of merchandise stores and wholesale.
The performance obligation is satisfied when goods are delivered to customers for domestic flights and international
flights, and revenue is recognized when such goods are delivered.
Other revenues consist mainly of wholesale revenues to other airports. The performance obligation is satisfied when
the goods are received by the customer and revenue is recognized when the customer receives the goods.
(c) Food and beverage
The food and beverage operations are mainly engaged in the operation of restaurants, and the production and sale of inflight meals.
For food and beverage revenues, the performance obligation is satisfied by providing food and beverage services tocustomers, and revenue is recognized when food and beverage services are provided to customers.
In-flight meal revenues consist mainly of sales of in-flight meals to international airlines. The performance obligation
is satisfied when products ordered by international airlines are delivered, and revenue is recognized when such products
are delivered.

- 85 -

(6) Accounting standards for important hedging transactions(a) Hedge accounting method
Hedging transactions are accounted for under the 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 notused 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.
[Hedge relationships to which “Treatment of hedge accounting for financial instruments that reference LIBOR” isapplied]Of the above hedge relationships, all of those included in the scope of application of “Treatment of hedge
accounting for financial instruments that reference LIBOR” (ASBJ PITF No. 40, March 17, 2022), the special
treatment prescribed in the PITF is applied. The details of hedging relationships to which the PITF is applied are as
follows.
Hedge accounting applied ------Hedging instrument -------------Hedged item ----------------------Category of hedge transaction---Deferral method
Interest rate swap
Floating rate borrowings
To fix cash flow(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 that are easily convertible to cash with insignificant risk offluctuation in values whose maturity will come within three months from the date of acquisition.
(8) Capitalization of borrowing costs
At certain consolidated subsidiaries, interest costs and related expenses on borrowings during the construction period ofpassenger terminals and other facilities are included in the acquisition cost (¥4,517 million for accumulated amount as ofMarch 31, 2024) and recorded as fixed assets.

- 86 -

(Significant accounting estimates)
1. Inventory valuation(1) Amount recorded in the consolidated financial statements for the current fiscal year
Loss (gain) on write-down of inventories
FY2022(From April 1, 2022
to March 31, 2023)(1,416)154(1,262)

Reversal at the beginning of the period
Amount recorded in the current period
Total(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)
(154)
40
(114)

(2) Information about the nature of significant accounting estimates for identified items(a) Calculation Method
The Group operates international duty-free stores and city duty-free stores. The number of international flightpassengers nearly tripled compared to the previous year, setting a new record for 2019 (calendar year). Additionally, thenumber of backlogged goods is also decreasing. The Company identifies backlogged goods based on the criteria thatthey have exceeded the storage period in bonded warehouses. The write-down ratio is calculated based on the full valueof items scheduled for disposal. For other items, the write-down ratio is calculated mainly based on the contractual return
value or actual sales records.
Concerning the reversal of book value write-downs recorded in the previous period, the method of reversal in thecurrent period (reversal method) is used.
(b) Main Assumptions
The primary assumption for the value of goods in arrears is the write-down ratio, which is calculated based on
historical sales performance.
(c) Impact on consolidated financial statements for the following fiscal year
The write-down ratio, which is calculated based on past sales performance, is subject to significant estimation
uncertainty. This is because past sales performance may not be indicative of future trends, and the backlog of inventory
may increase further, resulting in additional write-downs.

2. Recoverability of deferred tax assets(1) Amount recorded in the consolidated financial statements for the current fiscal year
Deferred tax assets:
10,919 million yen
Deferred tax liabilities:
11,879 million yen
The total deferred tax assets related to the tax loss carryforwards of the subsidiary, Tokyo International Air Terminal
Corporation (TIAT), before offsetting deferred tax liabilities, is 2,743 million yen.
(2) Additional information that provides insight into the nature of the accounting estimate(a) Calculation Method
The Company assesses the recoverability of deferred tax assets for future deductible temporary differences based on
an analysis of taxable income and tax planning strategies aligned with future earning capacity, as well as a review of theCompany’s classification by the “Guidance on Recoverability of Deferred Tax Assets.” The estimation of taxable income
is based on the business plan. During the period under review, the number of international airline passengers at Haneda
Airport saw a significant increase, leading the Company’s subsidiary, TIAT, an international terminal building operator,
to record deferred tax assets related to losses carried forward for tax purposes. The Group’s core business activities
include leasing office space and other facilities at passenger terminals, selling goods to airline passengers, and providing
food and beverage and travel services. Consequently, the Group is significantly reliant on airline companies, its primaryleasing partners, and airline passengers, its principal customers. Accordingly, the pertinent business plan is formulated
based on the number of international airline passengers and the duty-free unit price of merchandise sales, to forecast
future revenues and other pertinent items.

- 87 -

(b) Main Assumptions
The business plan of Tokyo International Air Terminal Corporation (TIAT) is based on two main assumptions: thenumber of international air passengers and the duty-free unit price of merchandise sales. The former is a key indicatorof the terminal’s performance, while the latter represents a significant source of revenue. The number of international
air passengers is estimated based on the actual number of recent flights and future schedules announced by airlines. The
unit price of duty-free merchandise sales is estimated based on actual sales during the current fiscal year.
(c) Impact on consolidated financial statements for the following fiscal year
It is important to note that the key assumptions, the number of international air passengers, and the estimated unit
price of duty-free merchandise sales are highly uncertain estimates. There is a risk that changes in these estimates may
also result in changes to the estimated amount of taxable income, which could have a significant impact on the estimatedamount of deferred tax assets. Accordingly, fluctuations in the number of international air passengers or the unit priceof tax-free merchandise sales, on which the business plan is based, may result in changes to the deferred tax assets.

(Accounting standards issued but not effective)[Disclosure for the year ended March 31, 2024]
Accounting Standard for Corporate, Inhabitant, and Enterprise Taxes (ASBJ Statement No. 27, October 28, 2022)
Accounting Standard for Presentation of Comprehensive Income (ASBJ Statement No. 25, October 28, 2022)
Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022)(1) Overview
In February 2018, the ASBJ issued ASBJ Statement No. 28, “Partial Amendments to Accounting Standard for Tax
Effect Accounting,” etc. (“ASBJ Statement No. 28, etc.”), which completed the transfer of the JICPA’s practical guidanceon tax effect accounting to the ASBJ Accounting Standards Board. In the course of the deliberations, the following two
issues were discussed and published, which will be reconsidered after the issuance of ASBJ Statement No. 28, etc.
✓ Classification of tax expense (taxation of other comprehensive income)✓ Tax effect on the sale of shares in subsidiaries and other securities (shares in subsidiaries or affiliates) when applying
group taxation(2) Scheduled date of adoption
The Group expects to adopt the accounting standards and related implementation guidance from the beginning of the
fiscal year ending March 31, 2025.
(3) Impact of adoption of revised accounting standard and related implementation guidance
The Group is currently evaluating the effect of the adoption of the accounting standards and related implementation
guidance on its consolidated financial statements.

- 88 -

(Change in Presentation Method)(Consolidated Statements of Income)“Subsidy income” under “non-operating income,” which was independently presented in the previous consolidated
fiscal year, is included in “Miscellaneous income” in the current consolidated fiscal year because it has become
insignificant in terms of amount.
In addition, “Rental income from facilities,” which was included in “Miscellaneous income” under “non-operating
income” in the previous consolidated fiscal year, has been independently presented in the consolidated fiscal year underreview due to its increased importance in monetary terms.
To reflect these changes in presentation, the consolidated financial statements for the previous consolidated fiscal year
have been reclassified.
As a result, ¥658 million presented as “Subsidy income” and ¥535 million presented as “Miscellaneous income” in“non-operating income” in the consolidated statements of income for the previous fiscal year have been reclassified as“Rental income from facilities” of ¥153 million and “Miscellaneous income” of ¥1,040 million.
“Fee and Commission expenses” under “Non-operating Expenses,” which were separately presented in the previous
consolidated fiscal year, are included in “Miscellaneous Expenses” in the current consolidated fiscal year because it has
become insignificant in terms of amount. To reflect this change in presentation, the consolidated financial statements forthe previous consolidated fiscal year have been reclassified.
As a result, the 102 million yen presented as “Fee and Commission expenses” under “Non-operating Expenses” in the
consolidated statement of income for the previous fiscal year have been reclassified as “Miscellaneous Expenses”.

(Consolidated Statements of Cash Flows)“Subsidy income” under “Cash flows from operating activities,” which was separately presented in the previous
consolidated fiscal year, is included in “Others” in the current consolidated fiscal year because it became insignificant interms of amount. To reflect this change in presentation, the consolidated financial statements for the previous consolidated
fiscal year have been reclassified.
As a result, the amount of (655) million yen presented as “Subsidy income” under “Cash flows from operating activities”
in the consolidated statements of cash flows for the previous fiscal year has been reclassified as “Others.”“Fee and Commission expenses” under “Cash flows from operating activities,” which was separately presented in theprevious consolidated fiscal year, is included in “Others” in the current consolidated fiscal year because it has become
insignificant in terms of amount. To reflect this change in presentation, the consolidated financial statements for theprevious consolidated fiscal year have been reclassified.
As a result, the 102 million yen presented as “Fee and Commission expenses” under “Cash flows from operating
activities” in the consolidated statements of cash flows for the previous fiscal year have been reclassified as “Others.”“Loss (gain) on sales of investment securities” under “Cash flows from operating activities,” which was separately
presented in the previous consolidated fiscal year, is included in “Others” in the current consolidated fiscal year because
it became insignificant in terms of amount. To reflect this change in presentation, the consolidated financial statements
for the previous consolidated fiscal year have been reclassified.
As a result, the (20) million yen presented as “Loss (gain) on sales of investment securities” in “Cash flows fromoperating activities” in the consolidated statements of cash flows for the previous fiscal year have been reclassified as“Others.”“Proceeds from sales of investment securities” under “Cash flows from investing activities,” which was independently
presented in the previous consolidated fiscal year, is included in “Others” in the current consolidated fiscal year because
it became insignificant in terms of amount. To reflect this change in presentation, the consolidated financial statements
for the previous consolidated fiscal year have been reclassified.
As a result, the 324 million yen presented as “Proceeds from sales of investment securities” in “Cash flows frominvesting activities” in the consolidated statements of cash flows for the previous fiscal year have been reclassified as“Others.”“Payments of long-term loans receivable” under “Cash flows from investing activities,” which was independently
presented in the previous consolidated fiscal year, is included in “Others” in the current consolidated fiscal year because
it has become insignificant in terms of amount. To reflect this change in presentation, the consolidated financial statements
for the previous consolidated fiscal year have been reclassified.
As a result, the (60) million yen presented as “Payments of long-term loans receivable” in “Cash flows from investing
activities” in the consolidated statements of cash flows for the previous fiscal year have been reclassified as “Others.”- 89 -

“Other payments” under “Cash flows from investing activities,” which was independently presented in the previous
consolidated fiscal year, is included in “Others” in the current consolidated fiscal year because it has become insignificant
in terms of amount. To reflect this change in presentation, the consolidated financial statements for the previous
consolidated fiscal year have been reclassified.
As a result, the amount of (286) million yen presented as “Other payments” under “Cash flows from investing activities”
in the consolidated statements of cash flows for the previous fiscal year has been reclassified as “Others.”“Other proceeds” under “Cash flows from investing activities,” which was independently presented in the previous
consolidated fiscal year, is included in “Others” in the current consolidated fiscal year because it has become insignificant
in terms of amount. To reflect this change in presentation, the consolidated financial statements for the previous
consolidated fiscal year have been reclassified.
As a result, 72 million yen presented as “Other proceeds” under “Cash flows from investing activities” in the
consolidated statements of cash flows for the previous fiscal year have been reclassified as “Others.”- 90 -

(Notes on Consolidated Balance Sheets)
1. Assets pledged as collateral and corresponding liabilities with collateral
The following are assets pledged as collateral.
FY2022(As of March 31, 2023)
35,118
39
104,748
434
53
4,641
1,000
146,036(Millions of yen)
FY2023(As of March 31, 2024)
41,47841
96,306
973
53
5,603
1,000
145,457

Cash and deposits
Accounts receivable
Buildings and structures
Machinery, equipment, and vehicles
Land
Investment securities (Note 1)
Other investments
Total
Notes:
1) Pledged as collateral for borrowings by affiliated companies and investee companies.
2) In addition to the above, investment securities (¥8,520 million and ¥8,520 million), shares of subsidiaries and affiliates (¥13,530 millionand ¥13,530 million), long-term loans receivable (¥8,510 million and ¥8,510 million), and accounts receivable (¥41 million and ¥59
million), which are offset and eliminated through consolidation adjustments in the fiscal year ended March 31, 2023 and 2024,
respectively, are pledged as collateral.

The following are liabilities for which assets are pledged as collateral.
FY2022(As of March 31, 2023)
100
110,909
111,009

Short-term borrowings
Long-term loans payable
Total(Millions of yen)
FY2023(As of March 31, 2024)
100
97,536
97,636

2. The following item is related to non-consolidated subsidiaries and affiliated companies.

Investment securities (shares)
Investment securities (capital)

FY2022(As of March 31, 2023)
5,663
984

(Millions of yen)
FY2023(As of March 31, 2024)
5,798
969

3. Liabilities guaranteed
The Company provides a guarantee (including commitment) to the following group companies for their borrowing fromfinancial institutions.
(1) Debt guarantee
FY2022(As of March 31, 2023)
Japan Airport Delica Inc.
225
Airport Transport Service Co., Ltd. (Note)
Total
225
Note: Liability booked about the application of the equity method is deducted from the amount guaranteed.

(Millions of yen)
FY2023(As of March 31, 2024)
225
225(2) Commitment to guarantee

Haneda Future Tokutei Mokuteki Kaisha

FY2022(As of March 31, 2023)
666- 91 -(Millions of yen)
FY2023(As of March 31, 2024)
666

4. Amount of reduction entry
Due to the receipt of national subsidy, reduction entry of the following amount is deducted from the acquisition costs oftangible fixed assets.
FY2022(As of March 31, 2023)
Tangible fixed assets:
Buildings and structures
Machinery, equipment, and vehicles
OthersIntangible fixed assets:
Others
Total(Millions of yen)
FY2023(As of March 31, 2024)

386
6,382
84

479
6,383
95

110
6,963

110
7,069

5. The amounts of accounts receivable arising from contracts with customers are as follows.

Accounts receivable

FY2022(As of March 31, 2023)
13,265(Millions of yen)
FY2023(As of March 31, 2024)
19,188

6. Notes to contractual liabilities
The amounts of contractual liabilities included in other liabilities are as follows.

Contractual liabilities

FY2022(As of March 31, 2023)
84- 92 -(Millions of yen)
FY2023(As of March 31, 2024)
100

(Notes on Consolidated Statements of Income)1. The amounts of revenue arising from contracts with customers are as follows.
FY2022(From April 1, 2022
to March 31, 2023)
92,938

Revenue arising from contracts with customers(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)
197,235

2. The amount of inventory at the fiscal year-end is the amount that reflects the writing-down of the book value due tothe decline in profitability, and the following inventory valuation loss is included in the cost of sales of merchandise.
Figures in parenthesis indicate the reversal of the write-down.
FY2022(From April 1, 2022
to March 31, 2023)(1,262)(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)(114)

3. Impairment loss
The Group recorded impairment losses on the following assets.
[FY2022(from April 1, 2022 to March 31, 2023]
Location

Use

Type
Amount (Millions of yen)
Buildings and structures,
Ota-ku, Tokyo
Facilities
260
others, intangible fixed assets
Note: The Group classifies assets primarily according to business locations. By examining impairment for fixed assets based on thegroupings, it was judged that the carrying amount of certain business assets at the Company and its consolidated subsidiaries is notrecoverable in the future. The entire carrying amount of those assets was recognized as an impairment loss of ¥260 million in
extraordinary loss. The loss consists of ¥245 million for buildings and structures, ¥14 million for others, and ¥1 million for
intangible fixed assets. Recoverable values of those assets were measured as zero, which were based on their values in use.

[FY2023(from April 1, 2023 to March 31, 2024)]
Not applicable- 93 -

(Notes on Consolidated Statements of Comprehensive Income)The following table presents reclassification adjustments and tax effects allocated to each component of othercomprehensive income for the years ended March 31, 2023, and 2024.
FY2022(From April 1, 2022
to March 31, 2023)(Millions of yen)
FY2023(From April 1,
2023
to March 31, 2024)

Unrealized holding gain (loss) on securities:
Amount arising during the year
Reclassification adjustments for gains and losses included in net profit
Amount before tax effectTax effectUnrealized holding gain (loss) on securities(1,218)(1,218)
389
(828)

1,809
(0)
1,808
(462)
1,346

Unrealized gain (loss) from hedging instruments:
Amount arising during the year
Reclassification adjustments for gains and losses included in net profit
Amount before tax effectTax effectUnrealized gain (loss) from hedging instruments

949
949
949

688
688
688

Foreign currency translation adjustments:
Amount arising during the year
Reclassification adjustments for gains and losses included in net profit
Amount before tax effectTax effectForeign currency translation adjustments

56
56
56

29
29
29

Retirement benefits liability adjustments:
Amount arising during the year
Reclassification adjustments for gains and losses included in net profit
Amount before tax effectTax effect
Retirement benefits liability adjustments

534
37
571
(132)
439

1,230
(79)
1,150
(279)
871

18
(2)
15
15

(0)
(3)
(4)
(4)

631

2,930

Share of other comprehensive income of companies accounted forby the equity method:Amount arising during the year
Reclassification adjustments for gains and losses included in net profit
Amount before tax effectTax effect
Share of other comprehensive income of companies accounted forby the equity method
Total other comprehensive income- 94 -

(Notes on Consolidated Statements of Changes in Shareholders’ Equity)
Information regarding changes in net assets for the years ended March 31, 2023, and 2024 is as follows:
1. Shares issued and outstanding / Treasury stock[For the year ended March 31, 2023]
Number of shares on
April 1, 2022
Shares issued: Common stock
93,145,400
Shares issued: Treasury stock
8,737
Note: Increase due to purchase of shares of less than standard unit
Type of shares

Increase-

Number of shares on
March 31, 2023
93,145,400
8,983

-

Number of shares on
March 31, 2022
93,145,400
9,339

Decrease
246[For the year ended March 31, 2024]
Number of shares on
April 1, 2021
Shares issued: Common stock
93,145,400
Shares issued: Treasury stock
8,983
Note: Increase due to purchase of shares of less than standard unit
Type of shares

Increase

Decrease356

2. Dividends(1) Dividends paid in the year ended March 31, 2023
None
Dividends paid in the year ended March 31, 2024
Resolution

Type of shares

Annual general meeting of theshareholders on June 28, 2023
Board of Directors
on October 25, 2023

Commonstock
Commonstock

Total dividends(millions of yen)

Dividends per
share (yen)

1,490

16.0

2,328

25.0

Cut-off
dateMarch 31,2023
September
30, 2023

Effective
date
June 29,
2023
December
8, 2023(2) Dividends for which the cut-off date is in the year ended March 31, 2023, and the effective date is in the year ending
March 31, 2024
Resolution
Annual general meeting of theshareholders on June 28, 2023

Type ofsharesCommonstock

Total dividends(millions of yen)
1,490

Source ofdividends
Retainedearnings

Dividends per
share (yen)16.0

Cut-off
dateMarch 31,2023

Effective
date
June 29,
2023

Dividends for which the cut-off date is in the year ended March 31, 2022, and the effective date is in the year ending
March 31, 2025
Resolution
Annual general meeting of theshareholders on June 26, 2024

Type ofsharesCommonstock

Total dividends(millions of yen)
3,911

- 95 -

Source ofdividends
Retainedearnings

Dividends per
share (yen)42.0

Cut-off
dateMarch 31,2024

Effective
date
June 27,2024

(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.
FY2022(From April 1, 2022
to March 31, 2023)
63,741
26,50090,241
90,241

Cash and deposits
Securities
Sub-total
Securities with maturities exceeding 3 months
Cash and cash equivalents(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)
65,39520,00085,395(10,000)
75,395(Lease Transactions)(Lessee’s side)
1. Finance lease transactions
Finance lease transactions that do not transfer ownership(1) Lease assets
Mainly comprised of passenger boarding bridges.
(2) Depreciation method applied to lease assets
As described in “(2) Depreciation method of important depreciable assets” in “4. Summary of significant accounting
policies” in “(Basic Important Conditions to Prepare Consolidated Financial Statements).”

2. Operating lease transactions
The future minimum lease payments under non-cancelable operating leases due after March 31, 2023, and 2024,
respectively, are summarized in the following table:

Within one year
More than one year
Total

FY2022(From April 1, 2022
to March 31, 2023)
397
502
900

FY2023(From April 1, 2023
to March 31, 2024)
759
2,737
3,496

(Lender’s side)
1. Finance lease transactions
None
2. Operating lease transactions
The future minimum lease payments under non-cancelable operating leases due after March 31, 2023, and 2024,
respectively, are summarized in the following table:

Within one year
More than one year
Total

FY2022(From April 1, 2022
to March 31, 2023)-- 96 -FY2023(From April 1, 2023
to March 31, 2024)
185
1,736
1,921

(Financial Instruments)
Overview
1. Policy for financial instruments
The Company and consolidated subsidiaries manage temporary cash surpluses through short-term deposits and lowrisk financial assets. Regarding financing, the Group raises funds through bank borrowings and bond issuance. The
Group uses derivatives to reduce the risk of interest rate fluctuation of borrowings and does not enter into derivatives
for speculative purposes.
2. Types of financial instruments and related risk
Accounts receivable-trade are exposed to credit risk about customers.
Investment securities are primarily exposed to market risk. These securities are mainly comprised of the shares ofcommon stock of other companies with which the Group has business relationships.
Substantially all accounts payable-trade have payment due dates within one year.
Short-term borrowings and long-term debt are taken out principally to make capital investments. Short-termborrowings and long-term debt with variable interest rates are exposed to interest rate fluctuation risk. However, toreduce such risk and fix interest expense for long-term debt-bearing interest at variable rates, the Group utilizes interest
rate swap transactions as a hedging instrument.
Information regarding the method of hedge accounting, hedging instruments and hedged items, hedging policy, andthe assessment of the effectiveness of hedging activities is found in “(6) Accounting standards for important hedging
transactions” in “4. Summary of significant accounting policies” in “(Basic Important Conditions to Prepare
Consolidated Financial Statements).”
3. Risk management for financial instruments(1) Monitoring of credit risk (the risk that customers or counterparties may default)
To the internal policies of the Group for managing credit risk arising from receivables, each related division monitors
the creditworthiness of their main customers periodically and monitors due dates and outstanding balances by individual
customers. In addition, the Group is making efforts to identify and mitigate risks of bad debts from customers who arehaving financial difficulties.
The Group also believes that the credit risk of derivatives is insignificant as it enters into derivative transactions onlywith financial institutions that have a sound credit profile.
(2) Monitoring of market risks (the risks arising from fluctuations in interest rates and others)
To mitigate the interest rate risk for short-term borrowings and long-term debt, the Group may also enter into interest
rate swap transactions.
For Investment securities, the Group periodically reviews the fair values of such financial instruments and thefinancial position of the issuers.
(3) Monitoring of liquidity risk (the risk that the Group may not be able to meet its obligations on scheduled due dates)
Based on reports from each division, the Group prepares and updates its cash flow plans every month to manage
liquidity risk.
4. Supplementary explanation of the estimated fair value of financial instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted
market price available, fair value is reasonably estimated. Since various assumptions and factors are reflected inestimating the fair value, different assumptions and factors could result in different fair values. In addition, the notionalamounts of derivatives in “(Derivative Transactions)” are not necessarily indicative of the actual market risk involved inderivative transactions.

- 97 -

Estimated fair value of financial instruments
The carrying values of financial instruments on the consolidated balance sheet as of March 31, 2023, and 2024 andthe estimated fair values are shown in the following table. The following table does not include financial instruments forwhich it is extremely difficult to determine fair value (Please refer to Note 2 below).
[For the year ended March 31, 2023]
Carrying value
Investment securities:
Other securities
Affiliate securities
Total assets
Bonds payable
Long-term debt
Total liabilities
Derivative transactions

Estimated fair value

8,043
2,338
10,382
55,139184,825
239,964(1,238)

8,043
2,650
10,69448,094179,086
227,180(1,238)(Millions of yen)difference
312
312(7,044)(5,738)(12,783)-[For the year ended March 31, 2024]
Carrying value
Investment securities:
Held-to-maturity bonds
Other securities
Affiliate securities
Total assets
Bonds payable
Long-term debt
Total liabilities
Derivative transactions

Estimated fair value

828
12,156
2,336
15,321
54,988169,314224,302(550)

824
12,156
2,938
15,92047,020163,093
210,114(550)(Millions of yen)difference
(3)
602
598
(7,967)(6,220)(14,188)-

Notes:
1) Cash and deposits, marketable securities, accounts receivable, accounts payable, and short-term borrowings are not stated because
their fair values approximate their book values due to their short-term maturities.
2) Stocks and other securities without market quotations are not included in Investment securities. The consolidated balance sheet
amounts of such financial instruments are as follows:(Millions of yen)
FY2022
FY2023(As of March 31, 2023)(As of March 31, 2024)
Unlisted stocks
5,887
5,957
3) Investments in partnerships and other similar entities where the net amount of the investment is recorded in the consolidated balance
sheets are not included. The consolidated balance sheet amounts of such investments are as follows:(Millions of yen)
FY2022
FY2023(As of March 31, 2023)(As of March 31, 2024)
Investments in limited partnerships
9849694) Net receivables and payables arising from derivative transactions are shown in net amounts, and items that are net liabilities in total
are shown in brackets.

- 98 -

The redemption schedule for Cash and deposits, accounts receivable, and marketable securities with maturities on
March 31, 2023, and 2024 is as follows:[For the year ended March 31, 2023](Millions of yen)
After one year throughfive years-

After five years
through ten years

After five years
through ten years

63,94922,93520,000-After one year throughfive years-

106,885-

Within one year
Cash and deposits
Accounts receivable
Marketable securities
Total

62,99815,331
26,500104,829

After ten years--[For the year ended March 31, 2024](Millions of yen)
Within one year
Cash and deposits
Accounts receivable
Marketable securities
Held-to-maturity
bonds
Total

After ten years
-

828

-

828

The redemption schedule for short-term borrowings, bonds payable, and long-term debt with maturities on March 31,
2023, and 2024 is as follows:[For the year ended March 31, 2023]

2,700

-

-

-

After four
years
through fiveyears-

13,00915,70910,00013,91523,915

12,65812,658

12,97912,97913,434
13,434

Within one year
Short-termborrowings
Bonds payable
Long-term debt
Total

After one year
through two
years

After two years
through three
years

After three
years throughfour years(Millions of yen)
After fiveyears

42,510115,062
157,572[For the year ended March 31, 2024]

2,700

-

-

-

After four
years
through fiveyears-

10,00013,915
26,615

12,265
12,265

12,71912,71912,822
12,822

11,055
11,055

Within one year
Short-termborrowings
Bonds payable
Long-term debt
Total

After one year
through two
years

After two years
through threeyears- 99 -

After three
years throughfour years(Millions of yen)
After fiveyears

42,510102,987
145,497

Matters relating to the breakdown of the fair value of financial instruments by level
The fair value of financial instruments is categorized into the following three levels based on the observability andmateriality of the inputs used to calculate fair value.
Level 1 fair value: Fair value calculated based on quoted prices in active markets for assets or liabilities for which suchfair value is calculated, which are among the inputs to the calculation of observable fair value.
Level 2 fair value: Fair value calculated using inputs other than those included in Level 1 to calculate observable fairvalue.
Level 3 fair value: Fair value calculated using inputs other than observable inputs to the calculation of fair value.
When multiple inputs are used that have a significant effect on the fair value calculation, the fair value is categorized
in the level with the lowest priority in the fair value calculation among the levels to which those inputs belong.

1. Financial instruments carried on the consolidated balance sheet at fair value[For the year ended March 31, 2023](Millions of yen)
Category

Fair value
Level 1

Investment securities:
Other securities
Total

Level 2

Level 3

5,736
5,736

-

Total
2,307
2,307

8,043
8,043

[For the year ended March 31, 2024](Millions of yen)
Category

Fair value
Level 1

Investment securities:
Other securities
Total

Level 2

Level 3

9,715
9,715

-

Total
2,441
2,441

12,156
12,156

2. Financial instruments other than those carried at fair value in the consolidated balance sheets[For the year ended March 31, 2023](Millions of yen)
Category

Fair value
Level 1

Investment securities:
Affiliate securities
Total assets
Bonds payable
Long-term debt
Derivative transactions
Total liabilities

Level 2
2,650
2,650
-

Level 348,094179,086
1,238
228,419

Total
-

2,650
2,650
48,094179,086
1,238
228,419[For the year ended March 31, 2024](Millions of yen)
Category
Investment securities:
Affiliate securities
Held-to-maturity bonds
Total assets
Bonds payable
Long-term debt
Derivative transactions
Total liabilities

Fair value
Level 1

Level 2
2,938
2,938
-

824
824
47,020163,093550
210,664- 100 -

Level 3

Total
-

2,938
824
3,763
47,020163,093550
210,664

Notes:1) Explanation of the valuation techniques and inputs used in determining fair valuea) investment securities
The market value of listed stocks among investment securities is based on the stock exchange price and is classified as Level 1.
The fair value of non-marketable corporate bonds is calculated using the discounted present value method based on the total principal
and interest for the remaining period and interest rate, considering credit risk. This is classified as Level 2. Preferred securities areclassified as Level 3 because their fair value is calculated using inputs related to the calculation of fair value that are partiallyunobservable.
b) bonds payable
The fair value of the bonds payable at the Company is based on the quoted market price. The fair value of bonds payable at aparticular subsidiary is based on the present value of the total principal and interest discounted at the interest rate that would be used
for similar new issues and is classified as Level 2.
c) long-term debt
The current portion of long-term debt and long-term debt with variable interest rates are carried at their carrying amounts because
their fair values approximate their carrying amounts, as market interest rates are reflective of short-term market rates and theCompany’s credit status has not changed significantly since the inception of these borrowings. Those with fixed interest rates areclassified as Level 2 as the fair value is calculated by discounting the total principal and interest of the related long-term borrowings,
classified by period, at the interest rate assumed for a similar new borrowing.
d) derivatives
The fair value of interest rate swaps is based on prices quoted by the counterparty financial institutions and is classified as Level 2.
2) Fair Value Information on Level 3 Financial Assets and Liabilities Carried at Fair Value on the Consolidated Balance Sheets
Concerning the valuation process for calculating the fair value of preferred securities classified as Level 3, the Group’s accounting
staff calculates the fair value of preferred securities every quarter by valuation policies and procedures approved by the head of theaccounting department.
The fair value of the preferred securities is calculated based on actual values, considering appraised property values and other factors.
No unobservable inputs are estimated and the impact of changes in unobservable inputs is not material.
Reconciliation of beginning balance to ending balance
Investment securities (in Millions of yen)
Beginning balance
Net profit or other comprehensive income for the period:
Recognition in other comprehensive income
Ending balance

2,307
134
2,441

- 101 -

(Securities)
1. Information regarding securities classified as held-to-maturity debt securities and other securities for the years ended
March 31, 2023, and 2024
Held-to-maturity debt securities[As of March 31, 2023]
None[As of March 31, 2024]
Carrying
value
Securities whose carrying value exceeds their fair value
Securities whose carrying value does not exceed their fair value
Total

828
828

824
824

(Millions of yen)
Unrealized
gain (loss)(3)(3)

Acquisition
cost(Millions of yen)
Unrealized
gain (loss)

Acquisition
cost

Other securities[As of March 31, 2023]
Carrying
value

Securities whose carrying value exceeds their fair value:
Stock
5,529
3,931
1,598
Other
2,307
1,506
800
Subtotal
7,836
5,437
2,398
Securities whose carrying value does not exceed their fair value:
Stock
207
253
(46)
Other
Subtotal
207
253
(46)
Total
8,043
5,691
2,352
Note: Unlisted stocks of ¥2,562 million and investments in investment limited partnerships of ¥984 million are not included in theabove table because there were no quoted market prices available, and it is extremely difficult to determine the fair value.

[As of March 31, 2024]
Carrying
value

Acquisition
cost(Millions of yen)
Unrealized
gain (loss)

Securities whose carrying value exceeds their fair value:
Stock
9,633
6,438
3,195
Other
2,441
1,506
934
Subtotal
12,075
7,944
4,130
Securities whose carrying value does not exceed their fair value:
Stock
81
94
(12)
Other
Subtotal
81
94
(12)
Total
12,156
8,039
4,117
Note: Unlisted stocks of ¥2,496 million and investments in investment limited partnerships of ¥969 million are not included in theabove table because there were no quoted market prices available, and it is extremely difficult to determine the fair value.

- 102 -

2. Sales of securities classified as other securities and the aggregate gain and loss for the years ended March 31, 2023,
and 2024[For the year ended March 31, 2023]
Proceeds from sales
Stock
Other
Total

6
6

(Millions of yen)
Loss on sales-

00(Millions of yen)
Loss on sales-

Gains on sales
99[For the year ended March 31, 2024]
Proceeds from sales
Stock
Other
Total

Gains on sales
22

3. Impairment of investment securities
Impairment losses of 99 million yen and 221 million yen were recognized on investments in other securities in FY22
and FY23, respectively.
In impairment of investment securities, if the market value (concerning shares not bearing market value, the interest in
the net asset value of the Company) dropped 50% or more from the acquisition cost at the end of fiscal years, the fullamount is impaired, and if the market value dropped by 30% to 50%, impairment is made for the amount deemed necessary,taking into consideration the materiality of the amount and the possibility of recovery.

(Derivative Transactions)
1. Summarized below are the notional amounts and the estimated fair value of the derivative instruments outstanding on
March 31, 2023, and 2024, for which hedge accounting has not been applied.
None

2. Summarized below are the notional amounts and the estimated fair value of the derivative instruments outstanding on
March 31, 2023, and 2024, for which hedge accounting has been applied.
Interest-related transactions[As of March 31, 2023](Millions of yen)Class of transactions
Interest swap contracts by general approach

Subject to hedged
accounting
Long-term debt

Notional
amount57,458

Subject to hedged
accounting
Long-term debt

Notional
amount52,639After one year
52,639Fair value(1,238)[As of March 31, 2024](Millions of yen)Class of transactions
Interest swap contracts by general approach- 103 -

After one year
24,735

Fair value(550)

(Retirement Benefit Plans)
The Company and most of its consolidated subsidiaries provide a jointly established corporate pension fund scheme(cash balance plan) and retirement bonus scheme.
In addition, one consolidated subsidiary excluded from the above provides a specific retirement benefit mutual scheme,
while another excluded from the above provides a retirement bonus scheme.
On March 30, 2009, the Company established a retirement benefit trust for its retirement bonus scheme.
Additional retirement benefits for meritorious work are sometimes paid to employees upon their retirement. These areexcluded from retirement benefit obligations calculated by actuarial methods based on retirement benefit accounting.
For the retirement benefit schemes operated by certain consolidated subsidiaries, the simplified method is used to
calculate liabilities related to retirement benefits and retirement benefit expenses.
1. The changes in the retirement benefit obligation for the years ended March 31, 2023, and 2024 are as follows (excludes
schemes to which the simplified method is applied):
FY2022(From April 1, 2022
to March 31, 2023)
10,164
583
54
(536)
(426)
58
9,899

Balance at the beginning of the year
Service cost
Interest cost
Actuarial gain and loss
Retirement benefit paid
Prior service cost
OthersBalance at the end of the year

(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)
9,899
526
77
(717)
(426)
(1)
9,358

2. The changes in plan assets for the years ended March 31, 2023, and 2024 are as follows (excludes schemes to which
the simplified method is applied):
FY2022(From April 1, 2022
to March 31, 2023)
9,321
98
(2)
232
(269)
46
9,427

Balance at the beginning of the year
Expected return on plan assets
Actuarial gain and loss
Contributions by the Company
Retirement benefit paid
OthersBalance at the end of the year

(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)
9,427
95
519
250
(243)
43
10,093

3. The changes in the retirement benefit liability accounted for using the simplified method for the years ended March 31,
2023, and 2024 are as follows:
FY2022(From April 1, 2022
to March 31, 2023)
2,904
263
(177)
(4)
2,985

Balance at the beginning of the year
Retirement benefit expenses
Retirement benefit paid
Contributions to fund
Balance at the end of the year

- 104 -

(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)
2,985
317
(198)
(0)
3,102

4. The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance
sheet as of March 31, 2023, and 2024 for the Group’s defined benefit plans:

Funded retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Net retirement benefit liability in the balance sheet
Retirement benefit liability
Retirement benefit asset
Net retirement benefit liability in the balance sheet
Note: Includes schemes to which the simplified method is applied

FY2022(From April 1, 2022
to March 31, 2023)
9,051(9,483)
(432)
3,889
3,457

(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)
8,545(10,147)(1,602)
3,969
2,367

4,562
(1,105)
3,457

4,208
(1,841)
2,367

5. The components of retirement benefit expenses for the years ended March 31, 2023, and 2024 are as follows:

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial gain and loss
Amortization of prior service cost
Retirement benefit expenses are calculated by the simplified method
Retirement benefit expenses

FY2022(From April 1, 2022
to March 31, 2023)
583
54
(98)
47
(9)
263
840

(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)
526
77
(95)
(70)
(9)
317
746

6. The components of retirement benefits liability adjustments included in other comprehensive income (before tax effect)
for the years ended March 31, 2023, and 2024 are as follows:
FY2022(From April 1, 2022
to March 31, 2023)
Prior service cost
Actuarial gain and loss
Total

(9)
581
571

(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)
(9)
1,160
1,150

7. The components of retirement benefits liability adjustments included in accumulated other comprehensive income(before tax effect) as of March 31, 2023, and 2024 are as follows:
FY2022(From April 1, 2022
to March 31, 2023)
(67)
(112)
(179)

Unrecognized prior service cost
Unrecognized actuarial gain and loss
Total

- 105 -

(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)(57)(1,272)(1,330)8. The fair value of plan assets, by major category, as a percentage of total plan assets as of March 31, 2023 and 2024 are
as follows:
FY2022(From April 1, 2022
to March 31, 2023)
47 %
37 %
16 %
100 %

Bonds
StocksOther
Total

FY2023(From April 1, 2023
to March 31, 2024)
46 %
39 %
16 %
100 %

9. The expected return on assets has been estimated based on the anticipated allocation to each asset class and the expectedlong-term returns on assets held in each category.
The assumptions used in accounting for the above plans are as follows:
FY2022(From April 1, 2022
to March 31, 2023)
0.2～1.2 %1.5 %2.4～3.3 %Discount rate
Expected rates of return on plan assets
Expected rates of salary increase

FY2023(From April 1, 2023
to March 31, 2024)
0.5～1.7 %1.5 %2.4～3.3 %(Asset retirement obligations)
1. Overview
The Company has obligations related to the restoration of the Haneda Airport Wharf to its original condition under the
Occupancy Permit for Land in the River Area administered by the Kanto Regional Development Bureau of the Ministryof Land, Infrastructure, Transport and Tourism (MLIT) and the Occupancy Permit for National Property related to
National Property administered by the East Japan Civil Aviation Bureau of the MLIT.
The Company also has an asset retirement obligation related to the obligation to restore the Haneda Catering Service
Plant and the Airport Clean Center to their original condition by the real estate leases.
The amount of the asset retirement obligation is calculated using a discount rate of 0.298% to 1.753% based on an
estimated useful life of 1 to 20 years from the date of acquisition.

2. The following table indicates the changes in asset retirement obligations for the years ended March 31, 2023 and 2024:
FY2022(From April 1, 2022
to March 31, 2023)
620
7
628

Balance at the beginning of the year
Accretion expense
Balance at the end of the year

(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)
628
7
636

3. Asset Retirement Obligations Not Reported in the Consolidated Balance Sheets
The Company and certain subsidiaries have been granted permission to use government-owned land administered by
the East Japan Civil Aviation Bureau of the MLIT and are required to restore the land to its original condition, including
demolition of passenger terminal buildings if the permission is revoked.
However, the effective period of use of the real estate (land) that the Company and certain subsidiaries are licensed touse concerning these obligations remains unclear in light of the future impact of trends in national aviation policy. As aresult, it is not possible to make a reasonable estimate of the asset retirement obligation, and no asset retirement obligation
corresponding to this liability has been recorded.

- 106 -

(Income Taxes)
Income taxes in Japan applicable to the Company and its domestic consolidated subsidiaries consist of corporation tax,
inhabitants’ taxes, and enterprise tax, which, in the aggregate, resulted in a statutory rate of approximately 31% for theyears ended March 31, 2023, and 2024.
1. The significant components of deferred tax assets and liabilities on March 31, 2023, and 2024 were as follows:
FY2022(From April 1, 2022
to March 31, 2023)
Deferred tax assets:
Net operating loss carry forward
Non-deductible portion of depreciation and amortization
Retirement benefit liability
Provision for employees’ bonuses
Unrealized gain on intercompany transactions
Loss on valuation of investment securities
Impairment losses
Enterprise tax payable
Property tax payable
Deferred losses on hedges
OthersTotal gross deferred tax assets
Valuation allowance for net operating loss carryforwards (Note 2)
Valuation allowance for deductible temporary difference
Total valuation allowance (Note 1)
Total of deferred tax assets
Deferred tax liabilities:
Revaluation of certain assets to fair values
Unrealized holding gains on securities
Retirement benefit asset
Gains on contribution of securities to retirement benefit trust
OthersTotal of deferred tax liabilities
Net deferred tax assets (liabilities)- 107 -

(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)

35,373
9,152
2,143
523
581
524
477
206
161
428
1,146
50,719(33,646)(3,400)(37,047)
13,67230,303
9,366
1,696
726
583
518
429
327
257
190
(1,612)
42,786(26,909)(3,131)(30,041)
12,744(16,336)
(686)
(279)
(216)
(239)
(17,759)(4,086)(11,703)(1,154)
(371)
(215)
(260)
(13,704)(960)

Notes:1) The change in the valuation allowance is mainly due to the increase in the estimated amount of deferred tax assets related to Net
operating loss carried forward at certain consolidated subsidiaries.
2) Net operating loss carryforwards and valuation allowance by expiration date on March 31, 2023, and 2024 are as follows:[For the year ended March 31, 2023](Millions of yen)
Withinone year

After oneyear throughtwo years

After two years
through three
years

After three
years throughfour years

After four
years throughfive years

After five
years

Total

Net operating loss carry forward

-

389

570

35

-

34,37735,373valuation allowance

-

(389)

(570)

(35)

-

(32,651)(33,646)

Deferred tax assets

-

-

-

-

-

1,726

1,726

Withinone year

After oneyear throughtwo years

After two years
through three
years

After four
years throughfive years

After fiveyears

[For the year ended March 31, 2024](Millions of yen)
After three
years throughfour years

Total

Net operating loss carry forward

389

570

35

-

-

29,30730,303valuation allowance

(389)

(570)

(35)

-

-

(25,917)(26,909)

Deferred tax assets

-

-

-

-

-

3,393

3,393

Notes:
1) The amount is determined by multiplying the corresponding net operating loss carried forward by the effective statutory tax rate.
2) Deferred tax assets of ¥1,726 million and ¥3,393 million as of March 31, 2023 and 2024, respectively, are the result of determining
the recoverability based on estimated future taxable income.

2. The reconciliation between the effective tax rates reflected in the consolidated statements of income and the effective
statutory tax rate for the year ended March 31, 2023, and 2024 were as follows:
FY2022(From April 1, 2022
to March 31, 2023)
Effective statutory tax rate
(Reconciliation)
Items permanently not deductible for tax purposes
Items permanently not includable in income
Valuation allowance
Equity in earnings (loss) of affiliates
Other
Effective tax rates reflected in the statements of income

The reconciliation wasomitted, because loss
before income taxes wererecorded for the year
ended March 31, 2023.

- 108 -FY2023(From April 1, 2023
to March 31, 2024)
30.62%
0.63%(0.19%)(25.93%)0.29%(1.57%)
3.85%

(Investment and Rental Properties)
The Company and a certain subsidiary own rental offices and rental commercial facilities in the passenger terminalbuilding at Tokyo International Airport (Haneda). In addition, the Company and certain subsidiaries own rental officebuildings and rental housing in Tokyo and other areas.
The carrying value on the consolidated balance sheet and corresponding fair value of these rental properties and realestate including space used as rental properties as of March 31, 2023 and 2024 are as follows:
FY2022(From April 1, 2022
to March 31, 2023)(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)

Rental properties:
Carrying values
Balance at the beginning of the fiscal year
20,75920,199Changes in the fiscal year(559)
(1,284)
Balance at the end of the fiscal year
20,19918,914
Fair values at the end of the fiscal year
40,71540,589Real estate including spaces used as rental properties:
Carrying values
Balance at the beginning of the fiscal year
242,818
238,389
Changes in the fiscal year
(4,429)(4,063)
Balance at the end of the fiscal year
238,389
234,325
Fair values at the end of the fiscal year
481,091
477,278
Notes:
1) The carrying value represents the acquisition cost less accumulated depreciation.
2) The fair value of most properties is mainly estimated by appraisal standards for valuing real estate. The fair value of other properties
is based on balance sheet amounts.

The income or loss from rental properties and real estate including space used as rental properties for the years ended
March 31, 2023, and 2024 were as follows:
FY2022(From April 1, 2022
to March 31, 2023)(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)

Rental properties:
Lease income
4,077
4,886
Lease cost
3,522
3,173
Lease profit (loss), net
555
1,713
Other, net
Real estate including spaces used as rental properties:
Lease income
47,62071,147
Lease cost
60,04569,833
Lease profit (loss), net(12,425)
1,314
Other, net
Note: Lease income excludes income from real estate including space used as rental properties that was used by the Company andcertain consolidated subsidiaries for leasing services and operation management. The expenses for these rental properties(depreciation expenses, repair costs, insurance premiums, taxes and public dues, and others) are included in the lease cost.

- 109 -

(Revenue Recognition)
1. Information that disaggregates revenue arising from contracts with customers
The Group’s revenues consist primarily of revenues from contracts with customers, which are classified by theCompany’s reportable segments by major types of goods or services. Facilities Management revenue includes revenue
based on the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13, March 30, 2007) and otherregulations.
[FY2022 (from April 1, 2022 to March 31, 2023)](Millions of yen)

Rent revenue
Facility user charges revenue
Other revenues
Sales at domestic terminal stores
Sales at international terminal stores
Other revenues
Sales from food and beverage stores
Sales from in-flight meals
Other revenues
Sales to external customers

Facilities
Management
19,852
29,325
14,102
63,280

Reportable segments
Merchandise
Sales
10,372
19,476
11,46941,317

Food and Beverage
5,489
2,487
475
8,452

Total
19,852
29,325
14,102
10,372
19,476
11,469
5,489
2,487
475
113,050[FY2023 (from April 1, 2023 to March 31, 2024)](Millions of yen)

Rent revenue
Facility user charges revenue
Other revenues
Sales at domestic terminal stores
Sales at international terminal stores
Other revenues
Sales from food and beverage stores
Sales from in-flight meals
Other revenues
Sales to external customers

Facilities
Management
20,02052,436
19,27991,736

Reportable segments
Merchandise
Sales
13,09770,03928,037111,175

Food and Beverage
7,206
6,179
1,281
14,667

Total
20,02052,436
19,27913,09770,03928,037
7,206
6,179
1,281
217,578

2. Information that provides a basis for understanding revenue from customer contracts
The basis for understanding revenues is as described in “5) Recognition of significant revenues and costs” in “4.
Summary of significant accounting policies” in “(Basic Important Conditions to Prepare Consolidated Financial
Statements).”- 110 -

3. Information about the relationship between the satisfaction of performance obligations under contracts with customers
and cash flows from such contracts, and the amount and timing of revenue expected to be recognized from contracts
with customers that exist at the end of the current fiscal year and are expected to be recognized in the following fiscal
year or later
FY2022(As of March 31, 2023)
5,060
13,26550
84(Millions of yen)
FY2023(As of March 31, 2024)
13,265
19,18884
100

Receivables arising from contracts with customers (beginning balance)
Receivables arising from contracts with customers (ending balance)
Contract liabilities (beginning balance)
Contract liabilities (ending balance)
Notes:
1) Receivables arising from contracts with customers
Receivables from contracts with customers consist mainly of Passenger Service Facility Charges (PSFC) collected frompassengers by airlines by regulations governing the provision of passenger handling facilities, and receivables related to credit cards
and electronic money, etc., used by customers in stores and restaurants operated by the Company. These amounts include amounts
collected on behalf of third parties as agency business. The collection period of these receivables is mainly one to two months.
The increase in receivables is mainly due to an increase in Passenger Service Facility Charge (PSFC) and other receivables
resulting from an increase in the number of passengers.
2) Contract liabilities
Contract liabilities consist primarily of advertising revenues and represent consideration received in advance of contract
performance and are reclassified to revenue as the Company performs under the contract.
Contract liabilities are included in Other current liabilities within current liabilities in the consolidated financial statements.

- 111 -

(Segment and Related Information)
Segment Information
1. Overview of reportable segments
The reportable segments of the Group are units for which separate financial information is available and whose operating
results are regularly reviewed by the Board of Directors to decide how to allocate management resources and evaluate theirperformances.
The Company is primarily engaged in the management of passenger terminal buildings and the provision of services tousers at Haneda Airport. Business divisions at the Company’s headquarters develop comprehensive business strategies andpursue business activities.
The Company is, therefore, composed of business segments with different services based on the business divisions. Its
three reportable segments are the facilities management operations, merchandise sales operations, and food 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 retailsales of products to passengers and others, wholesale of products to companies operating airport terminals and others, andother activities incidental to these two sales operations. The segment of food and beverage operations provides food andbeverage 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, profit (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 Consolidated Financial Statements.”
Segment income is based on operating profit.
Intersegment sales and transfers are based on the prevailing market price.

3. Sales, profit (loss), assets, liabilities, and other items by reportable segments[FY2022 (from April 1, 2022 to March 31, 2023)](Millions of yen)
Reportable segments

Adjustments(Notes 1)

Consolidated
financialstatements(Notes 2)

Facilities
Management

Merchandise
Sales

Food andBeverage

Sales to external customers

63,28041,317

8,452

113,050－

113,050

Intersegment sales and transfers

2,391

892

953

4,237

(4,237)－

Total

65,672

42,210

9,405

117,288(4,237)113,050

Segment profit (loss)(3,133)

1,640(1,365)(2,858)(7,720)(10,579)

Segment assets

280,33138,082

10,001

328,415

118,539446,955

Depreciation and amortization

26,4901,670

428

28,589432

29,022

Increase in tangible fixed assets andintangible fixed assets

11,127732

146

12,00677

12,083

Total

Operating revenues

Other items

Notes:
1) Details of adjustments are as follows:a. Adjustments to the segment income include ¥7,733 million of administration expenses for the administration and other divisions
at the parent company’s head office and certain subsidiaries that are not allocated to each of the reportable segments.
b. Adjustments to the segment assets include ¥167,407 million of corporate assets that are not allocated to each of the reportablesegments, which include 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.
c. Adjustments to depreciation and amortization include ¥451 million of depreciation concerning the administration and otherdivisions at the parent company’s head office and certain subsidiaries that are not allocated to each of the reportable segments.
d. Adjustments of ¥77 million to increase in tangible fixed assets and intangible fixed assets are primarily due to the acquisition ofrobots for cleaning.
2) Segment income is adjusted with operating profit recorded in the Consolidated Statements of Income.

- 112 -

[FY2023 (from April 1, 2023 to March 31, 2024)](Millions of yen)
Reportable segments

Adjustments(Notes 1)

Consolidated
financialstatements(Notes 2)

Facilities
Management

Merchandise
Sales

Food andBeverage

Sales to external customers

91,736111,175

14,667

217,578－

217,578

Intersegment sales and transfers

3,126

1,561

722

5,410

(5,410)－Total

94,862

112,736

15,389222,988(5,410)217,578

Segment profit (loss)

17,88021,08465

39,030(9,503)(29,527)

Segment assets

277,574

56,331

10,417344,323

116,099

460,423

Depreciation and amortization

25,7401,545

376

27,661570

28,232

Increase in tangible fixed assets andintangible fixed assets

30,018767

180

30,965814

31,779Total

Operating revenues

Other items

Notes:
1) Details of adjustments are as follows:a. Adjustments to the segment income include ¥9,518 million of administration expenses for the administration and other divisions
at the parent company’s head office and certain subsidiaries that are not allocated to each of the reportable segments.
b. Adjustments to the segment assets include ¥170,692 million of corporate assets that are not allocated to each of the reportablesegments, which include 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.
c. Adjustments to depreciation and amortization include ¥576 million of depreciation concerning the administration and otherdivisions at the parent company’s head office and certain subsidiaries that are not allocated to each of the reportable segments.
d. Adjustments of ¥814 million to increase in tangible fixed assets and intangible fixed assets are primarily due to t the renewal ofequipment for the sales management system.
2) Segment income is adjusted with operating profit recorded in the Consolidated Statements of Income.

Geographical information
1. Operating revenues
Operating revenues in Japan account for more than 90% of the operating revenues recorded in the consolidated
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 the consolidatedbalance sheet, thus the information is omitted.

Major customer
Not applicable- 113 -

Impairment loss on fixed assets by reportable segment
Impairment loss on fixed assets by reportable segment for the years ended March 31, 2023, and 2024 is summarized asfollows:

Facilities Management
Merchandise Sales
Food and Beverage
Reportable segment total
Adjustment and eliminations
Consolidated(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)-

FY2022(From April 1, 2022
to March 31, 2023)
260
260(Related Parties)
1. Related party transactions
Not applicable

2. Notes to a parent company and significant affiliates
Not applicable(Per Share Information)
FY2022(From April 1, 2022
to March 31, 2023)
1,613.62(41.89)Net assets per share
Net profit (loss) per share
Notes:
1) Diluted net profit per share is not shown since potential shares do not exist.
2) Net profit (loss) per share is calculated based on the following:(Yen)
FY2023(From April 1, 2023
to March 31, 2024)
1,805.67
206.75(Millions of yen, except for number of shares)
FY2022
FY2023(From April 1, 2022
(From April 1, 2023
to March 31, 2023)
to March 31, 2024)
Net profit (loss) per share:
Net profit (loss) attributable to owners of the parent
Amount not attributable to common shareholders
Net profit (loss) attributable to owners of the parent available
for distribution to common shareholders
Average number of shares outstanding during the period(thousand shares)(Significant Subsequent Events)
Not applicable- 114 -

(3,901)-

19,255-(3,901)

19,255

93,136

93,136

(5) Supplementary Consolidated Financial Statements[1. Detailed Statements of Bonds]
Description

Issue Date

As of March
31, 2023

As of March
31, 2024

Interest
rate (%)

Availabilityof collateral(Millions of yen)
Redemption
date

The Company:
March 5,
March 5,
10,00010,000
0.12
none
2020
2025
March 5,
March 5,
2nd issued unsecured bond
15,00015,000
0.27
none
2020
2030
March 5,
March 5,
3rd issued unsecured bond
15,00015,000
0.59
none
2020
2040
Tokyo International Air Terminal Corporation (TIAT):
December
April 30,
1st issued subordinated bond
4,004
3,974
1.95
none
6, 20122038
September
April 30,
2nd issued subordinated bond
8,008
7,948
1.95
none
10, 2013
2038
March 28,
April 30,
3rd issued subordinated bond
8,008
7,948
1.95
none
2014
2038
March 31,
April 30,
4th issued subordinated bond
6,000
6,000
6.00
none
2021
2038
April 9,April 30,
5th issued subordinated bond
450
450
6.00
none
2021
2038
Sub-total
66,472
66,321Eliminations(11,333)(11,333)
Total
55,13954,988
Note: The redemption schedule for the five years following the consolidated balance sheet date is as follows:
After one year throughAfter two years
After three years
After four years
Within one year
two years
through three years
through four years
through five years
10,000
1st issued unsecured bond

[2. Detailed Statements of loans payable and Lease liabilities]
Category

As of March
31, 2023
7,700
13,051
467
182,789
1,173
205,181(16,015)
189,165

As of March
31, 2024
8,200
13,957
470
166,204
811
189,643(16,347)
173,295

Average interest
rate (%)
1.69
0.72
2.12
-

(Millions of yen)
Repayment Date

Short-term borrowings
Current portion of long-term debt
Current portion of Lease liabilities
Long-term debt (excluding the current portion)
CY2025～CY2078
Lease liabilities (excluding the current portion)
CY2025～CY2029
Sub-total
Eliminations
Total
Notes:
1) The average interest rate is the weighted average interest rate on the balance of loans outstanding at the end of the fiscal year.
2) The average interest rate on Lease liabilities is not disclosed because Lease liabilities are recorded in the consolidated balance sheetsat their principal amount before deducting the amount of interest included in the total lease payments.
3) Scheduled principal payments of long-term debt and Lease liabilities (excluding the current portion) after the balance sheet date areas follows:
After one year throughAfter two years
After three years
After four years
two years
through three years
through four years
through five years
Long-term debt
12,265
12,71912,822
11,050
Lease liabilities
391
382
29
6

- 115 -

[3. Detailed Statements of Asset Retirement Obligation]
The amounts of asset retirement obligation at the beginning and end of this fiscal year are less than one-hundredth of
the amounts of total liabilities and equity at the beginning and end of this fiscal year, respectively. This statement has
been omitted because it is immaterial.

B. Others
Quarterly Financial Information

Operating revenues
Profit before income taxes and non-controlling interests
Net profit attributable to owners of the parent
Net profit per share (in yen)

1st Quarter
45,996
5,048
3,534
37.95

(Millions of yen, except for numbers per share)
2nd Quarter
3rd Quarter
4th Quarter
100,148
159,019
217,578
12,51821,74727,017
8,234
14,125
19,25588.41
151.66206.75(Accounting period)
Net profit per share (in yen)

1st Quarter
37.95

2nd Quarter
50.46(Cumulative period)- 116 -

3rd Quarter
63.25

4th Quarter
55.09

2. Non-Consolidated Financial Statements, and Others
A. Non-Consolidated Financial Statements(1) Non-Consolidated Balance Sheets(Millions of yen)
FY2022

FY2023(As of March 31, 2023)(As of March 31, 2024)

ASSETS
Current assets
Cash and deposits

25,381

20,053

Accounts receivable – trade32,336

41,292

Securities

26,50020,000

Merchandise and finished products

2,661

4,141

Stored goods

5

11

427

419

Accounts receivable – other

7,850

11,831

Short-term loans receivable

5,042

5,542

Prepaid expenses

Other current assets

726

561

Allowance for doubtful accounts

(43)

(54)

100,887

103,799

Buildings

105,875

100,636

Structures

660

548

3,922

3,097

6

4

Total current assets
Fixed assets
Tangible fixed assets

Machinery and equipment
VehiclesTools, furniture, and fixtures

6,448

6,379

Land

12,817

12,847

Lease assets

1,258

940

Construction in progress

8,712

29,423

Total tangible fixed assets

139,702

153,877

1,136

2,441

Software in progress

9350

Right-to-use facilities

28

45

1,175

2,837

Investment securities

18,592

22,073

Shares of subsidiaries and affiliates

23,253

23,418Intangible fixed assets
SoftwareTotal intangible fixed assets
Investments and other assets

Investments in other securities of subsidiaries and affiliates

Long-term loans receivable

984

969

8,763

8,721

-

2

Deferred tax assets

11,077

9,720

Lease and guarantee deposits

1,373

1,547

149

176

Long-term prepaid expenses

Prepaid pension costs
Other investments
Total investments and other assets
Total fixed assets
TOTAL ASSETS- 117 -

477

492

64,671

67,121

205,549

223,836

306,436

327,636(Millions of yen)
FY2022

FY2023(As of March 31, 2023)(As of March 31, 2024)

LIABILITIESCurrent liabilities
Accounts payable – trade

5,134

9,107

Short-term borrowings

3,185

3,185

-

10,000349

369

Accounts payable - other

7,679

12,541

Accrued expenses

7,391

8,814

Income taxes payable

1,889

3,796

Advances received

1,351

2,158

Deposits received

Current portion of bonds payable
Lease liabilities

30,71633,149Provision for employees’ bonuses

394

662

Provision for directors’ bonuses-

81

Other current liabilities

357

69

Total current liabilities

58,45083,936

Bonds payable

40,00030,000Long-term loans payable

51,924

48,739Provision for loss on business of subsidiaries and affiliates

7,243

8,052

Fixed liabilities

Provision for retirement benefits

566

613

Lease liabilities

1,031

685

Lease and guarantee deposited

3,215

3,225

Asset retirement obligations

324

329

Other fixed liabilities

109

109

Total fixed liabilities

104,415

91,755TOTAL LIABILITIES

162,865

175,692

38,12638,126

Legal capital surplus

41,947

41,947

Other capital surplus

12,184

12,184

Total capital surplus

54,131

54,131

1,716

1,716

NET ASSETS
Shareholders’ equity
Common stock
Capital surplus

Retained earnings
Legally retained earnings
Other retained earnings
Reserve for equalizing dividend

4,560

4,560

General reserve

59,20059,200Retained earnings brought forward(15,773)(8,414)49,702

57,062(10)(13)

141,950

149,307

Valuation difference on available-for-sale securities

1,620

2,636

Total valuation and translation adjustments

1,620

2,636

143,571

151,944306,436

327,636

Total retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments

TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS- 118 -

(2) Non-Consolidated Statements of Income(Millions of yen)
FY2022(from April 1, 2022
to March 31, 2023)

FY2023(from April 1, 2023
to March 31, 2024)

Operating revenues
Rent revenue

25,697

26,138

Facility user charges revenue

19,20622,128Other revenues

15,10922,536

Sales of merchandise

28,20072,550Total operating revenues

88,212

143,354

16,897

46,29771,31597,056

Outsourcing and commission

19,736

31,236

Rent expenses

Cost of sales
Cost of sales of merchandise
Gross profit
Selling, general and administrative expenses
6,472

9,261

Provision for employees’ bonuses

375

649

Provision for directors’ bonuses-

81

Retirement benefit expenses

197

110

Provision of allowance for doubtful accounts

1111

Depreciation expenses

14,724

13,994

Other costs and expenses

21,89026,056

Total selling, general, and administrative expenses

63,40981,400

7,905

15,656

Interest income

1,342

1,571

Dividends income

113

328

Company housing rent

213

225

Contributions in aid of construction

222

186

Operating profit
Non-operating income

Miscellaneous income
Total non-operating income

488

496

2,379

2,808

Non-operating expenses
Interest expenses

590

588

Interest expenses on bonds

141

141

Fee and commission expenses

72

38

Loss on retirement of fixed assets

283

375

Miscellaneous expenses
Total non-operating expenses
Ordinary profit- 119 -

42

52

1,128

1,195

9,156

17,269(Millions of yen)
FY2022(from April 1, 2022
to March 31, 2023)

FY2023(from April 1, 2023
to March 31, 2024)

Extraordinary gains
Gains on sale of investment securities

60-

National subsidies

58

117

Total extraordinary gains

118

117

Extraordinary loss
Impairment loss

260-

Provision for loss on business of subsidiaries and affiliates

860

809

Loss on valuation of shares of subsidiaries and affiliates-

130

Other extraordinary loss

136

104

Total extraordinary loss

1,257

1,044

Profit before income taxes

8,017

16,343

Income taxes – current

1,515

4,177

Income taxes – deferred

1,194

988

Total income taxes

2,709

5,165

Net profit

5,308

11,178- 120 -

(3) Non-Consolidated Statements of Changes in Shareholders’ Equity[FY2022 (from April 1, 2022 to March 31, 2023)](Millions of yen)
Shareholders’ equity

Balance at the beginning of the current
periodChanges during the current period
Dividend from retained earnings
Net profit
Purchase of treasury stock

Common stock

Capital surplus

38,12654,131Retainedearnings

Treasury stock

Total
shareholders’equity(9)136,643

(1)

5,308
(1)

44,394

5,308

Changes of items other than shareholders’equity during the current period (net)Total changes during the current period
Balance at the end of the current period

Balance at the beginning of the current
periodChanges during the current period
Dividend from retained earnings
Net profit
Purchase of treasury stock
Changes of items other than shareholders’equity during the current period (net)Total changes during the current period
Balance at the end of the current period

38,12654,131

5,308
49,702(1)(10)

Valuation and translation adjustments
Valuation difference on
Total valuation andavailable-for-sale securities
translation adjustments
2,472
2,472

5,307
141,950

Total net assets
139,115

5,308
(1)
(851)

(851)

(851)

(851)
1,620

(851)
1,620

4,455
143,571- 121 -

[FY2023 (from April 1, 2023 to March 31, 2024)](Millions of yen)
Shareholders’ equity

Balance at the beginning of the current
periodChanges during the current period
Dividend from retained earnings
Net profit
Purchase of treasury stock

Common stock

Capital surplus

38,12654,131Retainedearnings

Treasury stock

Total
shareholders’equity(10)

141,950(2)(3,818)
11,178(2)

49,702(3,818)
11,178Changes of items other than shareholders’equity during the current period (net)Total changes during the current period
Balance at the end of the current period

Balance at the beginning of the current
periodChanges during the current period
Dividend from retained earnings
Net profit
Purchase of treasury stock
Changes of items other than shareholders’equity during the current period (net)Total changes during the current period
Balance at the end of the current period

38,12654,131

7,359
57,062(2)(13)

Valuation and translation adjustments
Valuation difference on
Total valuation andavailable-for-sale securities
translation adjustments
1,620
1,620

7,357
149,307

Total net assets
143,571(3,818)
11,178
(2)
1,015

1,015

1,015

1,015
2,636

1,015
2,636

8,372
151,944- 122 -

Notes on the Non-Consolidated Financial Statements(Notes on the Premise of a Going Concern)
There is nothing to report.

(Significant Accounting Policies)
1. Valuation standards and methods for assets(1) Securities(a) Held-to-maturity securities are carried at cost.
(b) Shares of subsidiaries and affiliates are stated at cost based on the moving average method.
(c) Other securities
1) Other securities other than shares without fair values are stated at fair value based on the market value at the year-end,
with valuation differences included in net assets. The cost of securities sold is determined by the moving averagemethod.
2) Shares without fair values are stated at cost based on the moving average method.
For investments in limited liability investment partnerships and similar partnerships (deemed as securities under
Article 2, Paragraph 2 of the Financial Instruments and Exchange Act), the most recent financial statements available
according to the financial reporting date stipulated in the partnership agreement are used as the basis for calculating
the net amount equivalent to the Company’s interest.
(2) Derivatives
Derivative financial instruments are stated at fair value.
(3) Inventories
Inventories are principally stated at cost determined by the retail method (the book value of inventories in the balance
sheet is written down when their profitability declines).

2. Depreciation method of depreciable assets(1) Tangible fixed assets (excluding lease assets)
The declining balance method.
(2) Intangible fixed assets (excluding lease assets)
Amortization of intangible fixed assets is calculated by the straight-line method. Software intended for internal use isamortized by the straight-line method over its estimated useful life of 5 years.
(3) Lease assets
The straight-line method is adopted in which the lease term is treated as useful life and the asset is depreciated toresidual value.

3. Accounting policies for allowance and provisions(1) Allowance for doubtful accounts
To prepare for losses from doubtful accounts, estimated uncollectible amounts are recorded, which are computed either
by using the historical default rate for normal receivables or by considering individual collectability for particular
receivables such as highly doubtful accounts.
(2) Provision for employees’ bonuses
To prepare for the payment of bonuses to employees, the estimated amount is recorded as a provision.
(3) Provision for directors’ bonuses
To prepare for the payment of bonuses to directors, the estimated amount is recorded as a provision.

- 123 -

(4) Provision for employees’ retirement benefits
To provide for the payment of retirement benefits to employees, the Company accrues an estimated liability based on
the projected benefit obligation and plan assets at the end of the current fiscal year.
(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 averageremaining service years (10 years).
Actuarial gains and losses are amortized, beginning in the year following their occurrence, under the straight-line
method over a certain number of years within the average remaining service years (10 years).
(5) Provision for loss on business of subsidiaries and affiliates
To prepare for business losses of subsidiaries and affiliates, the estimated amount of the Company’s share of such losses
is recorded.

4. Recognition of significant revenues and costs
The Company is engaged in three business operations which are the facilities management operations, merchandise sales
operations, and food and beverage operations. The major obligations to be performed and the usual timing at which anentity satisfies such obligations in each of the business operations are as follows.
For transactions in which the Company’s role in providing goods or services to customers falls under the category ofagent, revenue is recognized as the net amount, the amount received from customers less the amount paid to suppliers.
(1) Facilities management
The facilities management operations are mainly engaged in the construction, management, and operation of passenger
terminals and leasing of real estate. Rent revenue consists mainly of office and store rent income, and is recognized by the“Accounting Standard for Lease Transactions” (ASBJ Statement No. 13, March 30, 2007) and relevant revised ASBJ
regulations.
Facility user charges revenues mainly consist of Passenger Service Facility Charge (PSFC) revenues. These revenues arecollected from passengers based on their use of passenger service facilities. The Company is obligated to use theserevenues to cover expenses related to facilities for the common use of passengers and to professionally manage and operate
the passenger terminals. Revenue is recognized when the air carrier completes the passenger air transportation services,
indicating that the performance obligation has been fulfilled.
Other revenues consist mainly of parking revenues, paid lounge sales, and advertising revenues. The performanceobligation is satisfied upon completion of the services such as provision of parking services, provision of lounge accessservices, and placement of advertisement. If the performance obligation is satisfied at a point in time, revenue isrecognized at the time the services are provided. If the performance obligation is satisfied over a certain period, revenue isrecognized on a straight-line basis over the period the service is provided.
(2) Merchandise sales
The merchandise sales operations are mainly engaged in the operation of merchandise stores and wholesale.
The performance obligation is satisfied when goods are delivered to customers for domestic flights and international
flights, and revenue is recognized when such goods are delivered.
Other revenues consist mainly of contract sales. The performance obligation is deemed to be satisfied when the goods
are delivered to the customer, and revenue is recognized when the goods are delivered to the customer.
(3) Food and beverage
The food and beverage operations are mainly engaged in the operation of restaurants, and the production and sale of inflight meals.
Restaurant sales consist primarily of contract sales. The Company has determined that its performance obligation issatisfied by providing food and beverage services to customers and recognizes revenue at the time food and beverage
services are provided to customers.

- 124 -

5. Other Basic Important Conditions to Prepare Non-Consolidated Financial Statements
Accounting for Retirement Benefit
The method of accounting for unrecognized actuarial gains and losses and unrecognized prior service costs related toretirement benefits differs from the method of accounting for these items in the consolidated financial statements.

(Significant accounting estimates)
1. Inventory valuation(1) Amount recorded in the consolidated financial statements for the current fiscal year
Loss (gain) on write-down of inventories
FY2022(From April 1, 2022
to March 31, 2023)(1,416)154(1,262)

Reversal at the beginning of the period
Amount recorded in the current period
Total(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)
(154)
40
(114)

(2) Information about the nature of significant accounting estimates for identified items
The method of calculating the amount in (1) is the same as that described in “Notes (Significant Accounting Estimates)
Inventory Valuation” in the Consolidated Financial Statements.

2. Valuation of shares of Tokyo International Air Terminal Corporation (shares of affiliated companies)(1) Amount recorded in the financial statements for the current fiscal year

Affiliate securities

FY2022(As of March 31, 2023)
13,530(Millions of yen)
FY2023(As of March 31, 2024)
13,530(2) Information about the nature of significant accounting estimates for identified items(a) Calculation Method
The stock of Tokyo International Air Terminal Corporation (TIAT) is valued by a real estate appraiser based on thebusiness plan of the terminal, as well as other factors such as the valuation profit. The resulting figure is then added to
the net assets of the Company to determine the actual value of the Company.
(b) Main Assumptions
The real estate appraiser used the business plan of TIAT as a reference, considering two key assumptions: the numberof international air passengers and the duty-free unit price of goods with high sales volume. The number of international
air passengers was estimated for the most recent year based on actual flight results and future schedules announced byairlines. Subsequently, the number of international air passengers was estimated based on airline demand forecasts
announced by the International Air Transport Association (IATA) and market trends specific to Haneda. Furthermore,
the duty-free unit price of merchandise sales is estimated based on historical data.
(c) Impact on non-consolidated financial statements for the following fiscal year
It is important to note that the estimates of the number of international air passengers and the duty-free unit price ofmerchandise sales, which are key assumptions, are highly uncertain. Fluctuations in the number of international air
passengers and the duty-free unit price of merchandise sales may cause fluctuations in our business performance.
Consequently, should the business plan upon which the estimates are based prove unattainable, the terminal valuation
gain may decline and a valuation loss on shares of affiliated companies may be incurred.

- 125 -

(Notes on Non-Consolidated Balance Sheets)
1. Assets pledged as collateral and corresponding liabilities with collateral
The following are assets pledged as collateral.
FY2022(As of March 31, 2023)
Investment securities
10,837
Shares of subsidiaries and affiliates
15,854Long-term loans receivable
8,510
Total
35,201
Note: Pledged as collateral for borrowings by affiliated companies and investee companies.

(Millions of yen)
FY2023(As of March 31, 2024)
11,79915,8548,510
36,163

2. Monetary receivables from and monetary payables to subsidiaries and affiliates (excluding those presented separately)

Short-term monetary receivables
Long-term monetary receivables
Short-term monetary payables
Long-term monetary payables

FY2022(As of March 31, 2023)
33,756
9,081
39,377569(Millions of yen)
FY2023(As of March 31, 2024)
43,5399,041
44,893572

3. Liabilities guaranteed
The Company provides a guarantee (including commitment) to the following group companies for their borrowing fromfinancial institutions.
(1) Debt guarantee(Millions of yen)
FY2022
FY2023(As of March 31, 2023)(As of March 31, 2024)
Airport Transport Service Co., Ltd.
1,800
1,800
Sakura Shokai Co., Ltd.
266
233
Japan Airport Delica Inc.
225
225
Air BIC Inc.
408
408
Japan Duty-Free Fa-So-La Isetan Mitsukoshi Co., Ltd. (Note)
Haneda Future Research Institute Inc.
87
Japan Airport Management LLC
5
6
Global Service Co., Ltd.
102
Total
2,791
2,774
Note: The amount related to the debt guarantee for Japan Duty-Free Fa-So-La Isetan Mitsukoshi Co., Ltd. is shown net of the provision forloss on business of subsidiaries and affiliates.

(2) Commitment to guarantee

Haneda Future Tokutei Mokuteki Kaisha

FY2022(As of March 31, 2023)
666- 126 -

(Millions of yen)
FY2023(As of March 31, 2024)
666

4. Amount of reduction entry
Due to the receipt of national subsidy, reduction entry of the following amount is deducted from the acquisition costs oftangible fixed assets.
(Millions of yen)
FY2023(As of March 31, 2024)
182
418
47
648

FY2022(As of March 31, 2023)
88
418
36
543

Buildings and structures
Machinery and equipment
Others
Total(Notes on Non-Consolidated Statements of Income)1. Transactions with subsidiaries and affiliates(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)

FY2022(From April 1, 2022
to March 31, 2023)
Transaction volume from business transactions:Operating revenue
Purchases of goods
Selling, general and administrative expenses
Non-operating transaction volume

35,461
3,284
21,625
2,077

100,306
7,574
29,0884,793

2. The amount of inventory at the fiscal year-end is the amount that reflects the writing-down of the book value due tothe decline in profitability, and the following inventory valuation loss is included in the cost of sales of merchandise.
Figures in parenthesis indicate the reversal of the write-down.
(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)(114)

FY2022(From April 1, 2022
to March 31, 2023)(1,262)(Securities)
Shares of subsidiaries and affiliates[For the year ended March 31, 2023](Millions of yen)

Carrying value
Affiliate securities

difference

1,995

Estimated fair value
2,650

difference

1,995

Estimated fair value
2,938

655

[For the year ended March 31, 2024](Millions of yen)

Carrying value
Affiliate securities

943

Note: Carrying amount of non-marketable equity securities and other securities not included in the above.
(Millions of yen)

Shares of Subsidiaries
Affiliate securities

FY2022(As of March 31, 2023)
18,4782,779- 127 -FY2023(As of March 31, 2024)
18,3483,074

(Income Taxes)
Income taxes in Japan applicable to the Company consist of corporation tax, inhabitants’ taxes, and enterprise tax,
which, in the aggregate, resulted in a statutory rate of approximately 31% for the years ended March 31, 2023, and 2024.
1. The significant components of deferred tax assets and liabilities on March 31, 2023, and 2024 were as follows:
FY2022(From April 1, 2022
to March 31, 2023)
Deferred tax assets:
Non-deductible portion of depreciation and amortization
Provision for loss on business of subsidiaries and affiliates
Provision for employees’ retirement benefits
Loss on valuation of the subsidiaries and affiliate securities
Impairment losses
Loss on valuation of investment securities
Enterprise tax payable
Provision for employees’ bonuses
Property tax payable
OthersTotal gross deferred tax assets
Valuation allowance
Total of deferred tax assets
Deferred tax liabilities:
Unrealized holding gains on securities
Returned assets
Gains on contribution of securities to retirement benefit trust
OthersTotal of deferred tax liabilities
Net deferred tax assets (liabilities)(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)

8,418
2,217
1,264
548
421
277
178
120
159
2,095
15,702(3,583)
12,119

8,641
2,465
1,279
588
373
277
258
202
158
722
14,968(3,904)
11,064

(670)
(99)
(216)
(55)
(1,041)
11,077(1,040)
(27)
(215)
(61)
(1,344)9,720

2. The reconciliation between the effective tax rates reflected in the non-consolidated statements of income and theeffective statutory tax rate for the year ended March 31, 2023, and 2024 were as follows:
FY2022(From April 1, 2022
to March 31, 2023)
30.62%

Effective statutory tax rate
(Reconciliation)
Items permanently not deductible for tax purposes
Items permanently not includable in income
Tax Measure to Promote Wage Increases
Valuation allowance
Others
Effective tax rates reflected in the statements of income

0.48%(0.21%)(1.27%)
4.13%
0.04%
33.79%FY2023(From April 1, 2023
to March 31, 2024)
The reconciliation wasomitted because thedifference is less than
5/100 of the statutory tax
rate.

(Change in Presentation Method)
To streamline the presentation of financial data, “Loss carried forward,” which was previously presented separately inthe previous fiscal year, is now included in “Others” in the current fiscal year as it has become insignificant in terms ofamount. To reflect this change in presentation, the notes for the previous fiscal year have been reclassified.
Consequently, the sum of 1,364 million yen, which was previously presented as “Loss carried forward,” is now included
in “Others” and reclassified as “Others” 2,095 million yen.

- 128 -

(Revenue Recognition)
Information that provides a basis for understanding revenue
The basis for understanding revenues is as described in “4. Recognition of significant revenues and costs” in“ (Significant Accounting Policies).”
The transaction price received by the Company in exchange for the transfer of goods or services includes, in part,variable consideration such as sales with a right of return. Variable consideration is estimated based on the value of thegoods beyond the expiration date of storage in the wholesaler’s bonded warehouse and is reviewed periodically basedon the most recent information available. The Company recognizes as revenues and expenses the contractual return
value of goods expected to be returned under the contract, less an amount equal to the cost of sales of merchandise.

(Significant Subsequent Events)
Not applicable- 129 -

(4) Supplementary Non-Consolidated Financial Statements[1. Detailed Statements of Tangible and Intangible Fixed Assets]
Category

Tangible
fixed
assetsIntangible
fixed
assetsBeginningbalance

Increase

Decrease

Depreciation
andamortization

Endingbalance

105,875
660
3,922
6

4,886
0
133
-

193
5
-

9,932
113
953
2

100,636
548
3,097
4

(Millions of yen)
Accumulated
depreciation
andamortization
249,121
5,389
11,762
36

6,448

2,087

24

2,131

6,379

35,9081,258
118,172
12,817
8,712
139,702
1,136
28
9
1,175

7,107
30
20,71027,849
1,847
18
347
2,213

224
224
0
6
6

318
13,44913,449
541
2
544

940
111,606
12,84729,423
153,877
2,441
45
350
2,837

1,384
303,601
303,601-

HANEDA INNOVATION CITY terminal.0 New Construction
Haneda Airport, Terminal 1: North Satellite Construction
Haneda Airport, Terminal 2: Satellite - main building connection construction(Millions of yen)
777
13,1887,013

Type of assets

Buildings
Structures
Machinery and equipment
VehiclesTools, furniture, andfixtures
Leased assets
Sub-total
Land
Construction in progress
Total
SoftwareRight-to-use facilities
Software in progress
Total

Notes:
1) The “Decrease” includes the amount of advanced depreciation.
2) The “Accumulated depreciation and amortization” includes accumulated impairment losses.
3) Major items in the “Increase” are as follows.
Buildings
Construction in progress
Construction in progress[2. Detailed Statements of Reserves]
Items
Allowance for doubtful
accounts
Provision for
employees’ bonuses
Provision for directors’
bonuses
Provision for loss on
business of subsidiaries
and affiliates

Beginning balance

Increase(Millions of yen)Ending balance

Decrease

43

11

-

54

394

662

394

662

-

81

-

81

7,243

809

-

8,052

B. Primary assets and liabilities
As the consolidated financial statements are prepared, this information is omitted here.

C. Others
There are no special items to report.

- 130 -

Item 6. Stock-Related Administration for the Company
Fiscal year
Ordinary General Meeting of Shareholders
Record date
Record date of dividends
Number of shares constituting one unit
Purchase and sales of shares less than one unit
Handling officeTransfer agent
Forward office
Purchase and sales fee
Method of public noticeSpecial benefit for shareholders

From April 1 to March 31
June
March 31
Interim dividends: September 30
Year-end dividends: March 31
100 shares(Special account)
1-3-3, Marunouchi, Chiyoda-ku, Tokyo
Securities Agent Department, Head Office, Mizuho Trust & Banking Co.
(Special account)
1-3-3, Marunouchi, Chiyoda-ku, Tokyo / Mizuho Trust & Banking Co.
Free of charge
The method of public notice by the Company shall be electronic public
notice, provided, however, that if the use of the electronic public notice
becomes impossible, due to an accident or any other unavoidable reason, thepublic notices of the Company shall be made by publication in The Nihon
Keizai Shimbun published in Tokyo.
We distribute “Shareholder Coupons” and “Shareholder Discount Coupons”
once a year to shareholders who own one unit (100 shares) or more and arelisted or recorded in the shareholder registry as of March 31 of each year.
In addition, as a long-term special benefit plan, “VJA Gift Cards” will be
distributed once a year to shareholders who are listed or recorded asshareholders of one unit (100 shares) or more in the Company’s shareholder
registry as of March 31 every year and who have held the Company’s sharesfor more than three years.
1) Shareholder Coupons
Each ticket can be used as a 1,000 yen voucher at our designated stores at
Haneda Airport, Narita Airport, Kansai Airport, Chubu Airport, and Ibaraki
Airport.
1 unit (100 shares) or more
but less than 10 units (1,000 shares)
10 units (1,000 shares) or more
but less than 100 units (10,000 shares)
100 units (10,000 shares) or more

1 coupon (1,000 yen)
2 coupons (2,000 yen)
3 coupons (3,000 yen)

2) Shareholder Discount Coupons
Shareholders holding one unit (100 shares) or more will receive five
“Shareholder Discount Coupons (10% discount)” that can be used at ourdesignated duty-free stores at Haneda Airport, Narita Airport, Chubu Airport,
and Ibaraki Airport.
3) Presentation of VJA gift cards
1 unit (100 shares) or more
but less than 10 units (1,000 shares)
10 units (1,000 shares) or more
but less than 100 units (10,000 shares)
100 units (10,000 shares) or more

1 gift card (1,000 yen)
2 gift cards (2,000 yen)
3 gift cards (3,000 yen)

Note: Under the Company’s Articles of Incorporation, shareholders holding shares of less than one unit do not have any rights otherthan the rights listed in each item of Article 189, Paragraph 2 of the Companies Act, the right to request under Article 166,
Paragraph 1 of the Companies Act, the right to receive allotment of offered shares and offered stock acquisition rights inproportion to the number of shares held by shareholders, and the right to request sale of shares less than one unit.

- 131 -

Item 7. Reference Information on the Company
1. Information on the Parent Company
Not applicable.

2. Other Reference Information
The Company filed the following documents during the period from the commencing date of the fiscal year ended
March 31, 2024, to the filing date of the Annual Securities Report.
(1) Annual Securities Report and Documents Attached, and Confirmation Letter
Business Term (79th) From April 1, 2022 to March 31, 2023
Filed with the Director-General of the Kanto Local Finance Bureau on June 28, 2023
(2) Internal Control Report and Documents Attached
Filed with the Director-General of the Kanto Local Finance Bureau on June 28, 2023
(3) Quarterly Report and Confirmation Letter
Business Term (80th 1st Quarter) From April 1, 2023 to June 30, 2023
Filed with the Director-General of the Kanto Local Finance Bureau on August 10, 2023
Business Term (80th 2nd Quarter) From July 1, 2023 to September 30, 2023
Filed with the Director-General of the Kanto Local Finance Bureau on November 10, 2023
Business Term (80th 3rd Quarter) From October 1, 2023 to December 31, 2023
Filed with the Director-General of the Kanto Local Finance Bureau on February 9, 2024
(4) Extraordinary Report
Filed with the Director-General of the Kanto Local Finance Bureau on June 30, 2023
Under Article 24-5, Paragraph 4 of the Financial Instruments and Exchange Act and Article 19, Paragraph 2, Item 9-2of the Cabinet Office Order on Disclosure of Corporate Affairs (results of exercise of voting rights at the General
Meeting of Shareholders).
(5) Amended Shelf Registration Statement
Filed with the Director-General of the Kanto Local Finance Bureau on June 30, 2023

Part II. Information on Guarantors for the Company
Not applicable.

- 132 -

[English Translation of the Independent Auditor’s Report Originally Issued in the Japanese Language]
Independent Auditor’s Report on the Financial Statements and Internal Control Over Financial Reporting
June 26, 2024

To: The Board of Directors of Japan Airport Terminal Co., Ltd.
EY Ernst & Young ShinNihon LLC

Tokyo OfficeHirohisa Fukuda
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Masahiro Fujimori
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Report on the Audit of the Consolidated Financial Statements
OpinionWe have audited the accompanying consolidated financial statements of Japan Airport Terminal Co., Ltd. (“theCompany”) and its consolidated subsidiaries (collectively referred to as “the Group") provided in the “Financial
Information” section in the Company’s Annual Securities Report (“Yukashoken Hokokusho”), which comprise theconsolidated balance sheet as of March 31, 2024, the consolidated statement of income, the consolidated statement ofcomprehensive income, the consolidated statement of changes in shareholders’ equity, the consolidated statement ofcash flows for the fiscal year then ended, notes on the consolidated financial statements, and supplementary
consolidated financial statements, by Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act ofJapan.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, theconsolidated financial position of the Group as of March 31, 2024, and its consolidated financial performance and its
consolidated cash flows for the fiscal year then ended in accordance with accounting principles generally accepted inJapan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities underthose standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are
relevant to our audit of the consolidated financial statements in Japan, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.

Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of theconsolidated financial statements of the current period. These matters were addressed in the context of the audit of theconsolidated financial statements as a whole, and in forming the auditor’s opinion thereon, and we do not provide aseparate opinion on these matters.
(The recoverability of deferred tax assets of the consolidated subsidiary, Tokyo International Air Terminal Corporation)
Description of Key Audit Matter
Auditor’s Response
The Company and its consolidated subsidiaries have
In evaluating the recoverability of deferred tax assets, werecognized deferred tax assets of 12,744 million yen before
conducted the following audit procedures:
offsetting deferred tax liabilities, as detailed in Note (Income
・In order to assess the recoverability of the deferred tax assets
Taxes). As detailed in Note (Significant Accounting Estimates), of Tokyo International Air Terminal Corporation, we
this figure incorporates deferred tax assets of 2,743 million yen considered that the estimated taxable income for the next fiscal
about tax loss carryforwards of a subsidiary, Tokyo
year was calculated based on the business plan.
International Air Terminal Corporation.
・To assess the number of international airline passengers, a
The Company and its consolidated subsidiaries assess the
key assumption in the business plan, we consulted with therecoverability of deferred tax assets by evaluating therelevant departments to gain insight into how the Company andclassifications of the Company by the “Guidance on
its consolidated subsidiaries estimate passenger numbers. We
Recoverability of Deferred Tax Assets.”
also utilized external data, including passenger volume
In the current consolidated fiscal year, the businessrecovery information from IATA (International Air Transport
performance of Tokyo International Air Terminal Corporation,
Association) and timetable data from the Ministry of Land,a consolidated subsidiary that operates international terminal
Infrastructure, Transport and Tourism (MLIT), to calculate thebuildings, has recorded deferred tax assets related to losses
auditor-allowable values. The auditor’s estimates for the
carried forward for tax purposes due to a sharp recovery in the
Company and its consolidated subsidiaries fell within thenumber of international airline passengers at Haneda Airport.
acceptable range.
The deferred tax assets are based on the estimated taxable
・In order to evaluate the tax-exempt unit price, which is a key
income of Tokyo International Air Terminal Corporation, withassumption in the business plan, we considered that thethe business plan of Tokyo International Air Terminal
estimate is based on the actual results of the current year in
Corporation serving as the basis for such estimates.
light of the prevailing business environment.
As outlined in the Notes (Significant Accounting Estimates),
the primary assumptions in this business plan are the number ofinternational air passengers and the duty-free unit price ofmerchandise sales. Given the inherent uncertainty of the futurebusiness environment, these assumptions are subject to change.
In light of the above, we have identified the assessment of
the recoverability of deferred tax assets of the consolidated
subsidiary, Tokyo International Air Terminal Corporation, as asignificant audit area.

(Inventory Valuation)
Description of Key Audit Matter
The Group recognized 7,850 million yen of merchandise andfinished goods on the consolidated balance sheets. This amountis net of an inventory write-down of 40 million yen. The
amount of the inventory write-down is calculated bymultiplying the value of goods in stock by the write-down
ratio.
The Company and some of its consolidated subsidiaries
operate airport duty-free stores and urban duty-free stores.
International airline passenger volume has been recovering
rapidly following the significant easing of entry restrictions
since October 2022. This has led to a steady recovery in dutyfree sales, resulting in a decrease in backlogs of goods.
As outlined in the Notes (Significant Accounting Estimates),backlogged goods are identified based on items that haveexceeded their storage period in bonded warehouses. The
write-down ratio used in the calculation of inventory writedowns is calculated in such a way that the full amount of
inventory write-downs is recorded for items scheduled for
disposal. For other items, the write-down ratio is calculated
mainly based on the contractual return value or actual sales forthe past performance.
A fundamental premise in the valuation of distressed goods
is the write-down rate, which is derived from historical sales
data and is inherently subject to estimation uncertainty, giventhat historical sales performance may not necessarily be
indicative of future trends.
Consequently, we have identified the valuation of inventories
as a key audit matter.

Auditor’s Response
In considering the inventory write-down, we conducted thefollowing audit procedures:
・To assess the comprehensiveness of the inventory in arrears,
we analyzed whether the inventory in arrears is identified
based on items that have exceeded the storage period inbonded warehouses.
・To ensure that the write-down rate was properly applied, we
reviewed the full value of items scheduled for disposal as
inventory write-downs and confirmed that the contractually
determined return values were consistent with the agreedupon values.
・With regard to the valuation loss ratio, which is calculated
based on historical sales data, a key assumption, theCompany confirmed that it is consistent with historical sales
data and recalculated the valuation loss ratio.
・In order to assess the efficacy of the valuation loss ratio
calculation methodology, we analyzed the discrepancy
between the valuation loss ratio applied to inventory
valuation at the end of the previous fiscal year and the actual
valuation loss ratio based on sales value data for the current
fiscal year.

Other Information
The other information comprises the information included in the Annual Securities Report but does not include theconsolidated financial statements, the financial statements, and our auditor’s reports thereon. Management is
responsible for the preparation and presentation of the other information. The Audit & Supervisory Committee is
responsible for overseeing the directors’ performance of their duties regarding the design, implementation, andmaintenance of the reporting process for the other information.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with the consolidated
financial statements, our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and the Audit & Supervisory Committee for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements inaccordance with accounting principles generally accepted in Japan, and for such internal control as management
determines is necessary to enable the preparation of the consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing whether it is appropriate
to prepare the consolidated financial statements with the assumption of a going concern, and in accordance withaccounting principles generally accepted in Japan, for disclosing, as necessary, matters related to going concern.
The Audit & Supervisory Committee is responsible for overseeing the Directors’ performance of their duties about
the design, implementation, and maintenance of the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our responsibilities are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that expresses ouropinion on the consolidated financial statements based on our audit from an independent point of view. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional
judgment and maintain professional skepticism throughout the audit process to perform the following:・Identify and assess the risks of material misstatement, whether due to fraud or error, and design and perform audit
procedures responsive to those risks. Selecting audit procedures to be applied is at the discretion of the auditor.
Obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
・When auditing the consolidated financial statements, obtain an understanding of internal control relevant to the audit
to design audit procedures that are appropriate in the circumstances in making risk assessments, but not to express an
opinion on the effectiveness of the Group’s internal control.
・Evaluate the appropriateness of accounting policies used by management and their method of application, as well as
the reasonableness of accounting estimates made by management and related notes thereto.
・Conclude on the appropriateness of preparing the consolidated financial statements with the assumption of a going
concern by management, and based on the audit evidence obtained, whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If weconclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the notes to theconsolidated financial statements or, if the notes to the consolidated financial statements on material uncertainty are
inadequate, to express a modified opinion on the consolidated financial statements. Our conclusions are based on theaudit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause theGroup to cease to continue as a going concern.
・Evaluate whether the presentation of the consolidated financial statements and notes to the consolidated financial
statements are in accordance with accounting principles generally accepted in Japan, as well as evaluate thepresentation, structure, and content of the consolidated financial statements, including the related notes thereto, andwhether the consolidated financial statements fairly present the underlying transactions and accounting events.
・Obtain sufficient appropriate audit evidence regarding the financial information of the Company and its consolidated
subsidiaries to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision, and performance of the audit of the consolidated financial statements. We remain solely responsible forour opinion.

We report to the Audit & Supervisory Committee regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit process, and other matters required by auditing standards.
We also provide the Audit & Supervisory Committee with a statement that we have complied with relevant ethicalrequirements in Japan regarding independence, and to communicate with them all relationships and other matters that
may reasonably be deemed to bear on our independence, and where applicable, related safeguards to eliminate or reduce
obstruction factors.
From the matters communicated with the Audit & Supervisory Committee, we determine those matters that were ofmost significance in the audit of the consolidated financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated inour report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.

Report on the Audit of the Internal Control Report
OpinionWe also have audited the accompanying internal control report of the Company as of March 31, 2024, by Article 1932, Paragraph 2 of the Financial Instruments and Exchange Act of Japan.
In our opinion, the accompanying internal control report, which states that the internal control over financial
reporting was effective as of March 31, 2024, presents fairly, in all material respects, the results of the assessments ofinternal control over financial reporting by assessment standards for internal control over financial reporting generally
accepted in Japan.
Basis for Opinion
We conducted our audit of the internal control report by auditing standards for internal control over financial
reporting generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Internal Control Report section of our report. We are independent of the Group by
the ethical requirements that are relevant to our audit of the internal control report in Japan, and we have fulfilled ourother ethical responsibilities by these requirements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.
Responsibilities of Management and the Audit & Supervisory Committee for the Internal Control ReportManagement is responsible for the design and operation of internal control over financial reporting and the
preparation and fair presentation of the internal control report by assessment standards for internal control over financial
reporting generally accepted in Japan.
The Audit & Supervisory Committee is responsible for overseeing and examining the design and operation of internal
control over financial reporting.
Internal control over financial reporting may not completely prevent or detect financial statement misstatements.
Auditor’s Responsibilities for the Audit of the Internal Control Report
Our responsibilities are to obtain reasonable assurance about whether the internal control report is free from material
misstatement based on our audit of the internal control report and to issue an auditor’s report that expresses our opinion
on the internal control report based on our audit from an independent point of view.
By internal control auditing standards generally accepted in Japan, we exercise professional judgment and maintainprofessional skepticism throughout the audit process to perform the following:・Perform procedures to obtain audit evidence about the results of the assessments of internal control over financial
reporting in the internal control report. The procedures for the audit of the internal control report are selected andperformed, depending on the auditor’s judgment, based on the significance of the effect on the reliability of financial
reporting.
・Evaluate the overall presentation of the internal control report, including the appropriateness of the scope,
procedures, and results of the assessments that management presents.
・Obtain sufficient appropriate audit evidence about the results of the assessments of internal control over financial
reporting in the internal control report. We are responsible for the direction, supervision, and performance of the auditof the internal control report. We remain solely responsible for our audit opinion.

We report to the Audit & Supervisory Committee regarding, among other matters, the planned scope and timing of
our audit of the internal control report, the results thereof, material weaknesses in internal control identified during our
audit of the internal control report, and those that were remediated, and other matters required by internal control
auditing standards.
We also provide the Audit & Supervisory Committee with a statement that we have complied with relevant ethicalrequirements in Japan regarding independence, and to communicate with them all relationships and other matters that
may reasonably be deemed to bear on our independence, and where applicable, related safeguards to eliminate or reduce
obstruction factors.

Compensation-related information
The compensation for audit attestation services and non-audit services provided by the Company and its subsidiaries
to the Audit Firm and affiliated networks is outlined in the “C. Condition of Audits” of “Corporate Governance” whichis included in “Item 4. Information of the Company” of “Part 1. Company Information” section.
Interest required to be disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company and its subsidiaries which
are required to be disclosed under the provisions of the Certified Public Accountants Act of Japan.

Notes to the Reader of Independent Auditor’s Report:
This is an English translation of the Independent Auditor’s Report as required by the Financial Instruments andExchange Act of Japan for the conveniences of the reader.

[English Translation of the Independent Auditor’s Report Originally Issued in the Japanese Language]
Independent Auditor’s Report on the Financial Statements
June 26, 2024

To: The Board of Directors of Japan Airport Terminal Co., Ltd.
EY Ernst & Young ShinNihon LLC

Tokyo OfficeHirohisa Fukuda
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Masahiro Fujimori
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
OpinionWe have audited the non-consolidated financial statements of Japan Airport Terminal Co., Ltd. (“the Company”)
provided in the “Financial Information” section in the Company’s Annual Securities Report (“Yukashoken
Hokokusho”), which comprise the non-consolidated balance sheet, the non-consolidated statement of income, the nonconsolidated statement of changes in shareholders’ equity, notes on the non-consolidated financial statements, and the
supplementary non-consolidated financial statements of the Company as of March 31, 2024 and for the 80th fiscal year
from April 1, 2023 to March 31, 2024, by Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act ofJapan.
In our opinion, the non-consolidated financial statements referred to above present fairly, in all material respects, thefinancial position of the Company as of March 31, 2024, and its financial performance for the fiscal year that ended inaccordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities underthose standards are further described in the Auditor’s Responsibilities for the Audit of the Non-Consolidated Financial
Statements section of our report. We are independent of the Company by the ethical requirements that are relevant toour audit of the non-consolidated financial statements in Japan, and we have fulfilled our other ethical responsibilities inaccordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
non-consolidated financial statements of the current period. These matters were addressed in the context of the audit of
the non-consolidated financial statements as a whole, and in forming the auditor’s opinion thereon, and we do notprovide a separate opinion on these matters.
(Inventory Valuation)
This information is omitted because it is identical to the key audit matters (Inventory Valuation) included in theauditor’s report on the consolidated financial statements.
Other Information
The other information comprises the information included in the Annual Securities Report but does not include theconsolidated financial statements, the financial statements, and our auditor’s report thereon. Management is responsible
for the preparation and presentation of the other information. The Audit & Supervisory Committee is responsible foroverseeing the directors’ performance of their duties regarding the design, implementation, and maintenance of thereporting process for the other information.
Our opinion on the financial statements does not cover the other information and we do not express any form ofassurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements, our knowledge
obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and the Audit & Supervisory Committee for the Non-Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the non-consolidated financial statements inaccordance with accounting principles generally accepted in Japan, and for such internal control as management
determines is necessary to enable the preparation of the non-consolidated financial statements that are free frommaterial misstatement, whether due to fraud or error.
In preparing the non-consolidated financial statements, management is responsible for assessing whether it isappropriate to prepare the non-consolidated financial statements with the assumption of a going concern, and inaccordance with accounting principles generally accepted in Japan, for disclosing, as necessary, matters related to going
concern.
The Audit & Supervisory Committee is responsible for overseeing the Directors’ performance of their duties
including the design, implementation, and maintenance of the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Non-Consolidated Financial Statements
Our responsibilities are to obtain reasonable assurance about whether the non-consolidated financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that expresses
our opinion on the non-consolidated financial statements based on our audit from an independent point of view.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these non-consolidated
financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional
judgment and maintain professional skepticism throughout the audit process to perform the following:・Identify and assess the risks of material misstatement, whether due to fraud or error, and design and perform audit
procedures responsive to those risks. Selecting audit procedures to be applied is at the discretion of the auditor.
Obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
・When auditing the non-consolidated financial statements, obtain an understanding of internal control relevant to theaudit to design audit procedures that are appropriate in the circumstances in making risk assessments, but not to
express an opinion on the effectiveness of the entity’s internal control.
・Evaluate the appropriateness of accounting policies used by management and their method of application, as well as
the reasonableness of accounting estimates made by management and related notes thereto.
・Conclude on the appropriateness of preparing the non-consolidated financial statements with the assumption of agoing concern by management, and based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the non-consolidated financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a going concern.
・Evaluate whether the presentation of the non-consolidated financial statements and notes to the non-consolidated
financial statements are in accordance with accounting principles generally accepted in Japan, as well as evaluate thepresentation, structure, and content of the non-consolidated financial statements, including the related notes thereto,
and whether the non-consolidated financial statements fairly present the underlying transactions and accounting
events.
We report to the Audit & Supervisory Committee regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit process, and other matters required by auditing standards.
We also provide the Audit & Supervisory Committee with a statement that we have complied with relevant ethicalrequirements in Japan regarding independence, and to communicate with them all relationships and other matters that
may reasonably be deemed to bear on our independence, and where applicable, related safeguards to eliminate or reduce
obstruction factors.
From the matters communicated with the Audit & Supervisory Committee, we determine those matters that were ofmost significance in the audit of the non-consolidated financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated inour report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.

Compensation-related information
Compensation-related information is presented in the auditor’s report on the consolidated financial statements.
Interest required to be disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company which is required to bedisclosed under the provisions of the Certified Public Accountants Act of Japan.

Notes to the Reader of Independent Auditor’s Report:
This is an English translation of the Independent Auditor’s Report as required by the Financial Instruments andExchange Act of Japan for the conveniences of the reader.

Cover【Document title】

Internal Control Report【Clause of stipulation】

Article 24-4-4, Paragraph 1 of the Financial Instruments andExchange Act of Japan【Place of filing】

Director-General of the Kanto Local Finance Bureau【Filing date】

June 26, 2024

【Company name】

Nihon Kuko Building KK.

【Company name in English】

Japan Airport Terminal Co., Ltd.

【Title and name of representative】

Nobuaki Yokota, President and COO【Title and name of chief financial officer】

Kazuhito Tanaka, Executive Vice President【Address of registered head office】

3-3-2, Hanedakuko, Ohta-ku, Tokyo, Japan【Place for public inspection】

Tokyo Stock Exchange, Inc.
(2-1, Nihonbashi Kabutocho, Chuo-ku, Tokyo, Japan)

1. Matters relating to the basic framework for internal control over financial reporting
Nobuaki Yokota, President and COO, and Kazuhito Tanaka, Executive Vice President (Chief Financial Officer), areresponsible for establishing and maintaining internal control over financial reporting of the Japan Airport Terminal Co.,
Ltd. (“the Company”), its consolidated subsidiaries, and equity-method affiliates (collectively referred to as “theGroup”) and have established and maintained internal control over financial reporting by the basic framework forinternal control outlined in the “On the Revision of the Standards and Practice Standards for Management Assessment
and Audit concerning Internal Control Over Financial Reporting (Council Opinions)” published by the BusinessAccounting Council.
The internal control over financial reporting is designed to achieve its objectives to the extent reasonable through theeffective function and combination of its basic elements. Therefore, there is a possibility that internal control overfinancial reporting may not completely prevent or detect misstatements.

2. Matters relating to the scope of assessment, the base date of assessment and the assessment procedures
The “Company” assessed the effectiveness of our internal control over financial reporting on the base date as ofMarch 31, 2024, and made this assessment by assessment standards for internal control over financial reporting
generally accepted in Japan.
In making this assessment, the Company evaluated internal control which may have a material effect on the entire
financial reporting on a consolidated basis (“company-level controls”), and based on the result of this assessment, theCompany appropriately selected business processes to be evaluated. In making these business processes assessments,
the Company analyzed these selected business processes, identified key controls that may have a material impact on thereliability of internal control over financial reporting, and assessed the design and operation of these key controls.
The Company determined the required assessment scope of internal controls over financial reporting for the Group
from the perspective of the materiality that may affect the reliability of its financial reporting. The materiality that may
affect the reliability of its financial reporting is determined by considering the materiality of quantitative and qualitative
impacts. The Company has determined the assessment scope of internal controls over business processes after
considering the results of the Company-level controls conducted for the Group (the Company, 10 consolidated
subsidiaries, and 3 equity-method affiliates). The Company did not include 9 consolidated subsidiaries which do nothave any quantitatively or qualitatively material impact on the consolidated financial statements in the assessment scopeof company-level controls.
About the scope of assessment of internal control over business processes, the Company accumulated business units
in descending order of operating revenues (after eliminating intercompany transactions) for the previous fiscal year, andthose business units whose combined operating revenues amount to approximately two-thirds of operating revenues on
a consolidated basis were selected as significant business units. At the selected significant business units, the Company
included, in the assessment scope, those business processes leading to operating revenues, accounts receivables, andinventories as accounts closely relating to the business objectives of the Company. Further, not only at selectedsignificant business units, but also at other business units, the Company added to the assessment scope, those businessprocesses having greater materiality considering their impact on the financial reporting, those business processes
relating to greater likelihood of material misstatements in significant accounts involving estimates or forecasts as thesesignificant accounts that may have a material impact on its business objectives, or those business processes relating tobusinesses or operations dealing with high-risk transactions.

3. Matters relating to the results of the assessment
As a result of the assessment above, the Company concluded that internal control over the financial reporting of theCompany was effective as of March 31, 2024.

4. Additional notes
Not applicable.

5. Special notes
Not applicable.