May 11, 2016

Financial Report for the Year Ended March 31, 2016 (FY2015) [J-GAAP] (Consolidated)
This document has been translated from the Japanese original, for reference purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.

Company name: Japan Airport Terminal Co., Ltd.
Listed stock exchange: Tokyo, 1st Section
Code number: 9706
URL: http://www.tokyo-airport-bldg.co.jp/company/en/
Representative: Isao Takashiro, President
Contact: Yasuhide Yonemoto, Senior Managing Director
TEL 03-5757-8030
Scheduled date of annual general meeting of shareholders: June 29, 2016
Scheduled date of filing securities report: June 29, 2016
Scheduled date of commencing dividend payment: June 30, 2016
Supplementary materials on financial results (yes/no): Yes
Holding of earnings announcement (yes/no): Yes (for institutional investors and financial analysts)(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Year Ended March 31, 2016 (April 1, 2015 to March 31, 2016)(1) Consolidated Business Results(%: Change from the previous period)
Net income attributable toOperating revenues
Operating income
Ordinary income
owners of the parent

%
17.7
17.9

Millions of yen

FY2015FY2014204,134
173,505

%
14.3
59.6

Millions of yen

11,302
9,888(Note) Comprehensive income: FY2015 ¥8,110 million (-14.5%)

13,654
11,849Millions of yen

8,870
6,648

%
33.4
123.1

FY2014 ¥9,483 million (142.3%)

Net income per
share
Yen

Diluted net income
per shareYen

109.2081.84

104.21
81.56

FY2015FY2014

%
15.2
107.0

Millions of yen%

Ordinary income tototal assets%

Operating income tooperating revenues
%

7.9
6.3

6.2
5.9

5.5
5.7

Return on equity(Reference) Equity in earnings of affiliates: FY2015 ¥1,529 million

FY2014 ¥1,315 million(2) Consolidated Financial Position
Total assets

Equity capital tototal assets

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

222,542
218,229

118,394
112,53052.1
50.2

1,427.66
1,349.32

As of March 31, 2016
As of March 31, 2015

(Reference) Equity capital: As of March 31, 2016 ¥115,967 million

As of March 31, 2015 ¥109,603 million(3) Consolidated Cash Flows
Cash flows from operating
activities

Cash flows from investing
activities

Cash flows from financing
activities

Cash and cash equivalents
at the year-end

Millions of yen

Millions of yen

Millions of yen

Millions of yen

15,235
19,520(7,810)(4,008)(10,759)
16,251

43,56546,897FY2015FY2014
2. Dividends

Dividends per share

Total
dividends(annual)Dividend
payout ratio(consolidated)

Dividends on
net assets(consolidated)

Q1-EndQ2-EndQ3-EndYear-End

Annual

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

-

9.00
15.00

-

12.00
18.00

21.00
33.00

1,705
2,680

25.7
30.2

1.6
2.4

-

18.00

-

18.00

36.00

FY2014FY2015FY2016(Forecast)

26.3

3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2017 (April 1, 2016 to March 31, 2017)(%: Change from the same period of the previous year)

Operating revenues
First half
Full-year

Operating income

Net income attributableto owners of the parent

Ordinary income

Net income
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

107,400
221,000

7.3
8.3

6,300
12,900

(4.2)
14.1

7,800
15,600

0.9
14.2

5,600
11,100

6.1
25.1

68.94
136.65

4. Other Information(1) Significant changes in subsidiaries during the year under review (changes in specified subsidiaries involving changes in scope of
consolidation): None
New: None
Excluded: None
(2) Changes in accounting policies, accounting estimates, and restatement of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement of revisions: None
(Note) For details, please see “(5) Notes on the Consolidated Financial Statements (Notes on Changes in Accounting Policies)” in“5. Consolidated Financial Statements” of the appendix materials.
(3) Number of shares outstanding (common stock)1) Number of shares outstanding at the year-end (including treasury stock):
As of March 31, 2016
84,476,500 shares
As of March 31, 2015
2) Number of treasury stock at the year-end:
As of March 31, 2016
3,247,422 shares
As of March 31, 2015
3) Average number of shares outstanding during the period:
Year ended March 31, 2016
81,229,164 sharesYear ended March 31, 2015

(Reference) Summary of Non-Consolidated Financial Results
1. Financial Results for the Year Ended March 31, 2016 (April 1, 2015 to March 31, 2016)(1) Non-Consolidated Business Results
Operating revenues
Millions of yen

FY2015FY2014

165,564
141,024

Operating income

%
17.4
19.2

8,532
6,826

3,247,182 shares
81,229,644 shares(%: Change from the previous period)

Ordinary income

%
25.0
74.4

Yen

Diluted net income per
share
Yen

57.90
53.13

55.16
52.95

Net income per share

FY2015FY2014

Millions of yen

84,476,500 shares

Millions of yen

9,538
7,691

Net income

%
24.0
81.9

%
9.0
83.0

Millions of yen

4,703
4,315

(2) Non-Consolidated Financial Position
Total assets

As of March 31, 2016
As of March 31, 2015
(Reference) Equity capital:
2.

Equity capital tototal assets

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

201,488
204,50999,55396,55049.4
47.2

1,225.59
1,188.62

As of March 31, 2016

¥99,553 million

As of March 31, 2015

¥96,550 million

Forecast of Non-Consolidated Financial Results for the Year Ending March 31, 2017 (April 1, 2016 to March 31, 2017)(%: Change from the same period of the previous year)

Operating revenues
First half
Full-year

Ordinary income

Net income

Net income per share

Millions of yen%

Millions of yen%

Millions of yen%

Yen

84,100173,900

4.0
5.0

4,500
9,500

(11.9)
(0.4)

3,100
6,500

(9.2)
38.2

38.16
80.02

* Implementation status of audit procedures
The audit procedure based on the Financial Instruments and Exchange Act does not apply to this Financial Report, and the audit
procedure based on the Financial Instruments and Exchange Act had not been completed as of the release of this Financial Report.

* Statements regarding the proper use of financial forecast and other special remarks
1. The forecast of the business results reported herein was prepared based on information the Company had in its possession as of thetime this report was prepared and on certain assumptions judged to be reasonable. The Company makes no guarantee that thesefigures will be achieved. Actual results may differ significantly from forecasts due to various factors. For matters related tofinancial forecast mentioned above, please refer to page 2 of the appendix materials “1. Business Results (1) Analysis ofConsolidated Business Results”.

2. Earnings announcement is planned to be held on May 18, 2016 for institutional investors and financial analysts. Video of thepresentation as well as presentation materials used in the earnings announcement will be promptly posted on the Company’s
website following the meeting.

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)

Contents of the Appendix Materials
1.

BUSINESS RESULTS AND FINANCIAL POSITION ........................................................................................... - 2 -(1) ANALYSIS OF CONSOLIDATED BUSINESS RESULTS ....................................................................................................... - 2 (2) ANALYSIS OF CONSOLIDATED FINANCIAL POSITION .................................................................................................... - 4 (3) BASIC POLICY REGARDING DISTRIBUTION OF EARNINGS AND DIVIDENDS FOR THE YEAR ENDED MARCH 31, 2016 AND
THE YEAR ENDING MARCH 31, 2017........................................................................................................................... - 5 -(4) BUSINESS AND OTHER RISKS ...................................................................................................................................... - 5 2.

OUTLINE OF THE BUSINESS GROUP ............................................................................................................. - 7 -3.

MANAGEMENT POLICY ................................................................................................................................. - 9 (1) BASIC MANAGEMENT POLICY ..................................................................................................................................... - 9 (2) KEY PERFORMANCE INDICATOR .................................................................................................................................. - 9 (3) MID- AND LONG-TERM BUSINESS PLAN AND ISSUES WHICH THE COMPANY NEEDS TO ADDRESS ................................. - 9 -4.

BASIC APPROACH ON SELECTION OF ACCOUNTING STANDARDS ........................................................... - 10 -5.

CONSOLIDATED FINANCIAL STATEMENTS ................................................................................................. - 11 (1) CONSOLIDATED BALANCE SHEETS ............................................................................................................................ - 11 (2) CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ............... - 13 (3) CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY .................................................................... - 16 (4) CONSOLIDATED STATEMENTS OF CASH FLOWS.......................................................................................................... - 18 (5) NOTES ON THE CONSOLIDATED FINANCIAL STATEMENTS .......................................................................................... - 20 (Notes on the Premise of a Going Concern) .................................................................................................................. - 20 (Notes on Changes in Accounting Policies) .................................................................................................................. - 20 (Notes on Changes in Presentation) ............................................................................................................................. - 20 (Notes on Consolidated Balance Sheets) ...................................................................................................................... - 21 (Notes on Consolidated Statements of Income).............................................................................................................. - 22 (Notes on Consolidated Statements of Cash Flows) ....................................................................................................... - 22 (Segment Information) ............................................................................................................................................... - 23 --1-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)

1. Business Results and Financial Position(1) Analysis of Consolidated Business Results1) Summary of earnings for the fiscal year ended March 31, 2016
During the fiscal year ended March 31, 2016 (FY2015), the Japanese economy experienced a gradual trendof recovery despite some weakness observed. Looking ahead, continuing improvement in employment andincome, coupled with various government policies, is expected to support moderate economic recovery.
Nevertheless, with signs of weakness seen in overseas economies, the prospect of economic downturns inoverseas markets, such as Asian emerging countries including China and natural resource-rich countries, poses arisk that could spill over and weaken the Japanese domestic economy.
The airline industry needs to further strengthen its competitiveness for a number of reasons that aretransforming our business environment, including increased competition caused by industry liberalization (openskies agreements) and expansion of routes by low-cost carriers (LCCs), reform of airport management structures
aimed at enhancing efficiency by integrating airport land and terminal building operations, and movements aimed
at strengthening functions of metropolitan airports. Furthermore, in March 2016, the Japanese government
revised upward its target for annual inbound tourists to Japan in 2020 from its previous target of 20 million,
which was almost achieved in 2015, to 40 million in order to meet the new challenge of a tourism-oriented
developed nation.
A review of passenger volume during FY2015 shows that passengers on domestic flights at Haneda Airport
were nearly the same level with those of the previous year. However, passenger volume on international flights
significantly rose year-on-year at Haneda Airport, Narita International Airport, and Kansai International Airport
since these airports continued to see their record high monthly volume of inbound passengers. In particular,
March 2016 alone reached a record high of 2 million inbound tourists.
Under these circumstances, in FY 2015, the last year of the medium-term business plan (FY 2013 throughFY 2015), the Japan Airport Terminal (JAT) Group has worked on our strategic priorities including: 1)
Responding to the internationalization of Haneda Airport, 2) Laying the groundwork to ensure the future of the
airport’s operation, 3) Improving the profitability of group businesses and 4) Strengthening human resources andorganizational capabilities.
In duty-free business, we have been successful in marketing efforts designed to take advantage of a growing
number of travelers visiting Japan from abroad, particularly from China and Southeast Asian countries, whichsignificantly contributed to financial results for FY2015. In addition, to create a new market, on January 27, 2016,
we opened an airport-style in-city duty-free shop (Japan Duty Free GINZA) on the eighth floor of the Mitsukoshi
Ginza department store. In the latter half of the fiscal year, the so-called “buying spree” phenomenon has been
settling down and revenue at our airport-style duty-free shop has fallen short of its target. We believe, however,that consumption by international visitors to Japan, in the duty-free market in particular, will expand further inline with the growth of inbound tourists in the mid- to the long-term.
At Haneda’s domestic terminal, “Mercedes me Tokyo HANEDA”, complete with restaurant, café and lounge,
opened at Terminal 2 in July 2015, which is designed to promote its brand information as the first model of thiskind in Asia. Also, through the renovation of “Tokyo Food Products”, previous face-to-face shops were changed
into ones that allow customers to take products in their hands, in order to improve customer convenience as wellas our profitability.
Moreover, various renovations at the domestic passenger terminals have been conducted to enhancecustomer convenience, comfort and functionality of the airport, including new escalators leading to a terrace(South and North) on the 3rd floor of Terminal 1, improvements in signage aimed at better meeting the needs ofinternational customers, introduction of step-less passenger boarding bridges (PBB) at Terminal 1 as well as the
opening of a multi-purpose restroom equipped with a dressing room, nursing room, and toilets for children.
Furthermore, we have made progress in applying next-generation robots in an effort to introduce Japanesetechnology and also to provide superior services that offer safety, security and convenience to airport users.
Keeping the future of the airport’s operation in mind, we will continue to work to create new value and improve
the quality of convenience for customers by carrying out research and development involving new robots aimed
at labor-saving and further sophistication of the airport facilities.
As a result, consolidated operating revenues for FY2015 totaled ¥204,134 million (up 17.7% from theprevious fiscal year), with operating income of ¥11,302 million (up 14.3%), ordinary income of ¥13,654 million(up 15.2%), and net income attributable to owners of the parent of ¥8,870 million (up 33.4%).
In 2015 which marked the 60th anniversary of Haneda Airport’s passenger terminal, we had the honor ofbeing recognized as meeting the global best standard and earning 5-Star Airport status in the Global Airport
Ranking conducted by Skytrax in the UK for the second year in a row. Haneda Airport terminals were awarded
first place both in the World’s Best Domestic Airport category and in the World's Best Airport Cleanlinesscategory in March 2016. In a bid to further enhance our reputation, we will work cooperatively as an entire
airport to move together in our preparations for the 2020 Tokyo Olympics and Paralympics Games. With thehighest priority placed on airport customers, we will ensure the safety of the airport and will provide services that-2-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)

offer exceptional customer convenience, comfort, and functionality. Aiming to be the world’s best passenger
terminal and to earn the long-term trust of customers, we are committed to contributing to the advancement of airtransportation.
The following is a breakdown of earnings by segment. Note that the figures for operating income are
equivalent to those for segment income.
[Facilities Management]
Rental revenue rose slightly from the previous year due to an increase in general rent spaces.
Revenue from facility user charges fell slightly from the previous year because a slight decline indomestic passenger volume caused a fall in user charges revenue for domestic terminal facilities.
Other revenues increased significantly from the previous year because of an increase in revenue fromoutsourcing business at Haneda’s international terminal and the increase of revenue from “Royal Park Hotel
THE Haneda” which opened in September 2014.
As a result, operating revenues from facilities management operations increased to ¥54,887 million (up7.6% year-on-year). Operating income for the segment rose to ¥6,135 million (up 14.3% year-on-year) due torevenue growth and decline of depreciation expenses.
[Merchandise Sales]
Significant year-on-year growth in inbound visitors to Japan due to the weakening of the Yen and theeasing of visa requirements for Southeast Asian countries boosted full-year sales at international terminal
stores and other (wholesale) revenues, although the so-called “buying spree” phenomenon showed signs of
weakening in the latter half of the year.
Sales at international terminal stores increased significantly from the previous year primarily because of
an increase in the sales of luxury brands as a result of marketing efforts targeting inbound travelers from China,
Southeast Asia, and other countries.
Other revenues (wholesale) also rose considerably year-on-year due to an increase in the wholesaling ofproducts to stores at Haneda Airport, Narita Airport, Kansai Airport, Central Japan International Airport, as
well as to other airports.
Sales at domestic terminal stores slightly surpassed those of the previous year due to an increase inrevenue from two shops of “Isetan Haneda Store” that opened in the previous fiscal year, even though
domestic passenger volume has remained roughly the same as the previous year.
As a result, operating revenues from merchandise sales operations increased to ¥134,471 million (up22.9% year-on-year). Operating income for the segment was ¥9,476 million (up 7.2% year-on-year) due inpart to an increase in expenses incurred to open an airport-style in-city duty-free shop and the associatedmarketing costs.
[Food and Beverage]
Sales from food and beverage operations increased from the previous year as a result of new shops
developed at Haneda’s domestic and international passenger terminals.
Sales from in-flight meals greatly rose from the previous year since foreign carriers, our clients in thisbusiness, increased their flights and we also acquired a new client.
Other revenues increased due to an increase in outsourcing business at Haneda’s international passenger
terminal.
As a result, operating revenues from food and beverage operations increased to ¥20,063 million (up10.7% year-on-year). Operating income for the segment was ¥564 million (up 216.9% year-on-year), coupledwith various cost reductions.
2) Forecast for the fiscal year ending March 31, 2017
Over the next fiscal year, continuing improvement in employment and income, coupled with various
government policies, is expected to support moderate economic recovery. Nevertheless, with signs of weakness
seen in overseas economies, the prospect of economic downturns in overseas markets, such as Asian emerging
countries including China and natural resource-rich countries, poses a risk that could spill over and weaken theJapanese domestic economy.
The airline industry needs to further strengthen its competitiveness for a number of reasons that aretransforming our business environment, including increased competition caused by industry liberalization andexpansion of routes by LCCs, reform of airport management structures aimed at enhancing efficiency byintegrating airport land and terminal building operations, and movements aimed at strengthening functions ofmetropolitan airports. Furthermore, in March 2016, the Japanese government revised upward its target for annual
inbound tourists to Japan in 2020 from its previous target of 20 million, which was almost achieved in 2015, to
40 million in order to meet the new challenge of a tourism-oriented developed nation.
-3-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)

Under these conditions, our present expectations for earnings by segment are described below.
Facilities management operations are expected to generate better results than in FY2015 primarily because
expected growth in passenger number is forecast to boost revenue from facility user charges.
Merchandise sales operations are forecast to rise year-on-year due to the full-year contribution of an
airport-style in-city duty-free shop (Japan Duty Free GINZA) that opened in January 2016 in Mitsukoshi Ginza
department store.
Food and beverage operations are expected to grow compared to FY2015, reflecting an increase in revenue
from in-flight meals.
Therefore, for consolidated performance in the fiscal year ending March 31, 2017 (FY2016), we forecast
operating revenue of ¥221,000 million (up 8.3% year-on-year), operating income of ¥12,900 million (up 14.1%),
ordinary income of ¥15,600 million (up 14.2%), and net income attributable to owners of the parent of ¥11,100
million (up 25.1%).
(2) Analysis of Consolidated Financial Position
1) Assets, liabilities and net assets[Assets]
Current assets increased by ¥4,722 million from the previous fiscal year end to ¥74,203 million. The increase
was primarily because merchandise and finished products increased by ¥3,960 million and because accounts
receivable increased by ¥2,767 million. Fixed assets decreased by ¥409 million from the previous fiscal year end
to ¥148,339 million, primarily due to a decline in tangible fixed assets by ¥2,651 million resulting from theprogress of depreciation, despite an increase in investment securities by ¥1,683 million.
As a result, total assets increased by ¥4,313 million from the previous fiscal year end to ¥222,542 million.
[Liabilities]
Current liabilities increased by ¥5,327 million from the previous fiscal year end to ¥43,357 million. The
increase was primarily because of an increase in accrued expenses by ¥6,010 million and an increase in accounts
payable by ¥800 million despite a decrease in short-term loans payable by ¥736 million. Fixed liabilities
decreased by ¥6,878 million from the previous fiscal year end to ¥60,790 million, primarily because of adecrease in long-term loans payable by ¥7,166 million, despite an increase in net defined benefit liabilities by¥420 million.
As a result, total liabilities decreased by ¥1,551 million from the previous fiscal year end to ¥104,148
million.
[Net assets]
Total net assets increased by ¥5,864 million to ¥118,394 million. The increase was primarily because
retained earnings increased by ¥6,677 million and valuation difference on available-for-sale securities increasedby ¥500 million, despite a decrease in remeasurements of defined benefit plans by ¥528 million.
As a result, the equity ratio was 52.1% (compared to 50.2% at the previous fiscal year end).
2) Cash flows
Cash and cash equivalents (hereinafter referred to as “cash”) at the current fiscal year end decreased by¥3,332 million compared to the previous fiscal year end to ¥43,565 million.
The following is a summary of cash flows and the factors behind these flows for the current fiscal year.
[Cash flows from operating activities]
Net cash provided by operating activities decreased by ¥4,284 million (down 22.0%) from the previous fiscal
year to ¥15,235 million.
This was primarily due to an increase in inventories and income taxes paid.
[Cash flows from investing activities]
Net cash used in investing activities increased by ¥3,802 million (up 94.8%) from the previous fiscal year to¥7,810 million.
This was largely due to an increase in the purchase of tangible fixed assets.
[Cash flows from financing activities]
Net cash used by financing activities was ¥10,759 million, compared to a cash inflow of ¥16,251 million in
the previous fiscal year.
This was mainly because of proceeds from issuance of bonds with stock acquisition rights recorded in theprevious fiscal year.
-4-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)

Cash flow indicators
Equity ratio (%)
Equity ratio based on market
value (%)
Debt to cash flow ratio (years)
Interest coverage ratio (times)

FY201151.7

FY201253.1

FY201354.1

FY201450.2

FY2015
52.1

46.8

54.7

117.5

271.0

146.0

4.3
13.9

3.8
17.3

3.5
15.2

2.1
25.7

2.2
26.8

Equity ratio: equity capital / total assets
Equity ratio based on market value: market capitalization / total assets
Debt to cash flow ratio: interest-bearing debt / operating cash flow
Interest coverage ratio: operating cash flow / interest payment(Notes)1. All indicators are calculated using financial figures on a consolidated basis.
2. Market capitalization is calculated by multiplying the final stock price at term end by the number of shares outstanding at
term end (after deduction of treasury stock).
3. “Operating cash flow” uses cash flow from operating activities shown in consolidated statements of cash flows.
“Interest-bearing debt” refers to all debt posted in consolidated balance sheets for which interest is paid. “Interest
payment” refers to the interest paid on consolidated statements of cash flows.

(3) Basic Policy Regarding Distribution of Earnings and Dividends for the Year Ended March 31, 2016 and the YearEnding March 31, 2017
JAT considers distributing profits to shareholders an important issue. We have a basic policy of continuing
to pay stable dividends by taking a more aggressive stance toward business and striving to improve earnings,
while at the same time securing sufficient retained earnings in light of the possibility of large scale investments,
such as the maintenance of the domestic terminal buildings at Haneda Airport.
In light of above-mentioned dividend policy and business results, dividends for the current fiscal year will
come to ¥33 per share (of which ¥15 per share has already been paid as an interim dividend).
Regarding dividends for the next fiscal year, the JAT Group expects to pay an annual dividend of ¥36 pershare (of which ¥18 per share will be paid as an interim dividend), though the dividend policy will be flexibly
examined taking into account various prevailing factors, such as business conditions and results.
(4) Business and Other Risks
Matters that could significantly impact judgment by investors are discussed below.
Among these, those involving future considerations have been identified based on judgments made by the
JAT Group as of the end of the current fiscal year.
1) The JAT Group’s business baseAs a company that constructs, manages and operates Haneda Airport’s domestic passenger terminalbuildings and other facilities, the JAT Group’s core businesses consist of the leasing of office and other spaces,
sales of merchandise, operation of food and beverage services, and the provision of travel-related services. We
also conduct operational services and wholesale business at Haneda Airport’s international passenger terminalbuilding. In addition, we engage in activities like sales of merchandise and the provision of food and beverage
services at Narita International Airport, Kansai International Airport, as well as other airports. The JAT Groupleases to other parties commercial real estate it owns outside of airports, and we apply experience andexpertise that we have accumulated over the years to develop promising new businesses, both inside andoutside of airport facilities.
2) Business risks for the JAT GroupThe JAT Group has identified the business risks described below. To minimize the business impact ofthese risks should they materialize, the JAT Group has diversified its revenue base both geographically (among
Haneda, Narita International, and other airports) and operationally (among facilities management operations,merchandise sales operations, and food and beverage operations). Moreover, it has strengthened measures toaddress the possibility of operating expense increases in each of its businesses. Through these and otherprudent steps, the JAT Group has endeavored to enhance its core business strengths and boost its overallcapabilities.
-5-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)(i) The JAT Group’s core businesses consist of the leasing of offices and other spaces in airport passenger
terminal buildings and the operation of merchandise sales, food and beverage services and travel-related
services for air travelers. As such, it is highly reliant on the airline companies that are its primary lessees
and the air travelers who are its primary customers. Fluctuations in international and domestic passenger
volume resulting from international political or economic upheaval, natural disasters, and developments
like the emergence of new strains of influenza, and the business results of airline companies, could
significantly impact the JAT Group’s business results and financial position.
(ii) The JAT Group manages its key business – operation of the domestic and international passenger terminalbuildings at Haneda Airport – based on its designation as an Airport Facilities Operator pursuant toprovisions of The Airport Act. Therefore, legal or organizational changes concerning terminal building
operations and changes in airport management policy by the national government (which oversees airport
management) or regulatory authorities, could significantly impact the JAT Group’s business results andfinancial position.
(iii) Aimed at fueling the growth of the air transport industry and revitalizing the Japanese economy, theMinistry of Land, Infrastructure, Transport and Tourism (MLIT) has developed a growth strategy thatconsists of three cornerstones: air transport liberalization, promotion of the entry of new carriers (such as
LCCs) into the market, and reforms in airport management. Progress has been made toward the reform in
airport management, as evidenced by the newly-enacted law for “The operation of state-run airports, etc.
by utilizing the management capabilities of the private sector”. Therefore, the guidelines to be set forth by
the national government and regulatory authorities have the potential to significantly impact the JATGroup’s future business results and financial position.
(iv) The JAT Group has constructed and owns two domestic passenger terminal buildings and multilevelparking facilities at Haneda Airport. Within these two buildings, it leases offices as well as other spaces,
and operates merchandise sales, food and beverage services, and travel-related services. The JAT Grouphas endeavored to take all reasonable measures to prevent or respond to disasters, criminal activity, andaccidents, to promote the safe and comfortable operation of its terminal buildings. However, despite its best
efforts, earthquakes, fires, acts of terror, or other such events resulting in injuries, deaths, or property
damage at the airport or terminal buildings could significantly impact the JAT Group’s business results andfinancial position.
(v) The JAT Group operates airport food and beverage services, sells processed and other food products in
airport retail stores, and engages in the production and sale of in-flight meals. In pursuing these activities, itpays strict attention to food safety. Damage to the JAT Group’s reputation, administrative dispositions, andother such consequences of food poisoning, the inclusion of foreign objects in products, or other quality
assurance issues at a dining facility or retail store, for example, could significantly impact the JAT Group’sbusiness results and financial position.
(vi) The JAT Group, in order to efficiently and stably secure financing, has entered into syndicated loan
agreements with financial institutions. These agreements include financial and other covenants. The
violation of these covenants – for example, by a significant lowering of JAT’s credit rating following achange in tax regulations or the Group’s business environment – could result in the forfeiture of the benefitof time and significantly impact the JAT Group’s cash flow, business results, and financial position.

-6-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)

2. Outline of the Business GroupThe JAT Group (JAT and its group companies) consists of JAT (Japan Airport Terminal Co., Ltd.), 17
subsidiaries, and 10 affiliated companies. In addition to facilities management operations, including the operationof domestic and international passenger terminals of Haneda Airport and the provision of services to domestic
and international users of the airport terminals, the JAT Group conducts merchandise sales operations and foodand beverage operations. Furthermore, the JAT Group conducts operations, such as merchandise sales at Narita
International Airport, Kansai International Airport, Central Japan International Airport, and Chengdu Shuangliu
International Airport (Chengdu, Sichuan province, China).
The following is a description of the position of JAT and its subsidiaries and affiliates within the corporategroup and the details of its operations.
Facilities management operations:
JAT and one of its affiliated companies operate domestic and international passenger terminal building
facilities at Haneda Airport, including the leasing of the facilities to aviation-related companies (particularly
airline companies) and the development and operation of these facilities.
In addition, Japan Airport Techno Co., Ltd., along with three other subsidiaries and six affiliated companies,
performs maintenance, operation, security and cleaning of facilities related to airport terminals, passenger
transportation, and ground handling operations. Furthermore, BIG WING Co., Ltd. and one other subsidiary
provide services, such as advertising agency operations and passenger services, at airport terminals.
Merchandise sales operations:
JAT, International Trade Inc., along with six other subsidiaries and three affiliated companies, conduct
merchandise sales operations. These companies carry out retail sales to parties such as airline passengers,
particularly those at Haneda Airport (domestic and international), Narita International Airport, and KansaiInternational Airport. Moreover, they sell wholesale to entities such as companies operating airport terminals,
including Central Japan International Airport.
In addition, a JAT subsidiary called Japan Airport Logitem Co., Ltd. conducts operations such as transporting
merchandise and managing warehouses.
Furthermore, another JAT subsidiary called as Japan Airport Terminal Trading (Chengdu) Co., Ltd. conducts
merchandise sales operations at Chengdu Shuangliu International Airport (Chengdu, Sichuan Province, China).
Food and beverage operations:
JAT, Tokyo Airport Restaurant Co., Ltd., one other subsidiary, and an affiliated company provide food andbeverage services to various parties, such as users of Haneda Airport (domestic and international) and Narita
International Airport.
Cosmo Enterprise Co., Ltd., one other subsidiary, and one affiliated company produce and sell in-flightmeals and frozen foods to airline companies mainly flying international routes through Haneda Airport andNarita International Airport. Another JAT subsidiary, Japan Airport Terminal Trading (Chengdu) Co., Ltd.
conducts food and beverage services in China (Chengdu, Sichuan Province).

-7-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)

The following diagram shows the operations discussed above.

Customers

Japan Airport Terminal Co., Ltd.
Facilities management operations
Haneda Airport Security Co., Ltd.
Haneda Passenger Service Co., Ltd.
Japan Airport Ground Handling Co., Ltd.

Subsidiary

Sakura Co., Ltd.

*1
*1
*1
*1

Merchandise sales operations
Japan Duty Free Fa-So-La Isetan MitsukoshiCo., Ltd*1International Trade Inc.
*1
Japan Airport Logitem Co., Ltd.
*1
Haneda Airport Enterprise Co., Ltd. *1
Hamashin Co., Ltd.
*1
Tsukizi Hamashin Co., Ltd.
*2BIG WING Co., Ltd.
Japan Airport Techno Co., Ltd.

Food and beverage operations
Tokyo Airport Restaurant Co., Ltd.
Cosmo Enterprise Co., Ltd.
CTT Co., Ltd.
Kaikan Development Co., Ltd.

*1
*1
Japan Airport Terminal Trading (Chengdu) Co., Ltd.

Affiliated company

Airport Transport Service Co., Ltd.
Narita Airport Techno Corporation
Tokyo City Air Terminal Co., Ltd.
Seikousha Inc.
Kanto Kowa Co., Ltd.
SK Clean Service Co., Ltd.

*3
*3
*4
*4
*4
*4

*1
*1
*1
*1

Japan Trade Culture Inc.
Gran’ Bird Co., Ltd.

*4
*4

Tokyo International Air Terminal Corporation *3*1. Consolidated subsidiary: 16 companies*2. Non-consolidated subsidiary that is not accounted for using the equity method: one company*3. Affiliated company that is accounted for using the equity method: 4 companies*4. Affiliated company that is not accounted for using the equity method: 6 companies-8-

Japan Airport Delica Inc.

*1
*3

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)

3. Management Policy(1) Basic Management Policy
The JAT Group has a basic management philosophy to achieve harmony between society and business as acorporate group that constructs and manages domestic passenger terminals and other facilities at Haneda Airport,
the base of the domestic air transportation network.
Under this basic philosophy, the JAT Group is committed to fulfill its social responsibilities by ensuringsafety at terminals and operating customer-oriented terminals in a stable and efficient manner.
In order to continue to enhance corporate value, the JAT Group strives to improve the convenience, comfort,
and functionality of terminals through the implementation and management of strategically importantinvestments and by responding appropriately to increasingly sophisticated and diversified customer needs. As abasic management policy, we work to create value for stakeholders, including airline companies, airport users,
business partners, and shareholders.
JAT has been designated as an Airport Facilities Operator under The Airport Act. To fulfill its
responsibilities, JAT will take comprehensive measures to fully realize its basic management philosophy.
(2) Key Performance Indicator
The JAT Group recognizes return on assets (ROA) and return on equity (ROE) as key performanceindicators. Since we consider it important for management to take every measure to ensure increasing
shareholder value through efforts to maximize the return on invested capital, our newly-formulated medium-termbusiness plan set the target level of ROA (ordinary income, EBITDA) and emphasized the importance ofimproving its level by enhancing the value of passenger terminal buildings and the other assets we own.
Furthermore, we will continue with our efforts to maintain financial soundness by keeping our equity ratio above
50% through prudent management of borrowings and other liabilities.
(3) Mid- and Long-Term Business Plan and Issues which the Company Needs to Address
Under the medium-term business plan that covered from FY2013 to FY 2015, JAT Group has worked on our
strategic priorities including: 1) Responding to the internationalization of Haneda Airport, 2) Laying the
groundwork to ensure the future of the airport’s operation, 3) Improving the profitability of group businesses and4) Strengthening human resources and organizational capabilities.
In the airline industry, a number of changes are transforming our business environment, including increased
competition caused by industry liberalization and expansion of routes by LCCs, reform of airport management
structures aimed at enhancing efficiency by integrating airport land and terminal building operations, andmovements aimed at strengthening the functions of metropolitan airports. Furthermore, in March 2016, theJapanese government revised upward its target for annual inbound tourists to Japan in 2020 from its previous
target of 20 million, which was almost achieved in 2015, to 40 million in order to meet the new challenge of
tourism-oriented developed nation. These changes call for certain functions of the metropolitan airport to bedramatically strengthened.
In order to respond to these changes, it is essential for us to further strengthen our competitiveness throughefforts to expand business outside of the airport by leveraging our know-how as well as strengthening business at
Haneda Airport.
Under these circumstances, JAT Group decided to lay out its new long-term vision of “To be a World Best
Airport” so that we can achieve sustainable growth through the creation of new businesses and the generation of
profits, while aiming to be an airport that satisfies the needs of all stakeholders. Based on this long-term vision,
the new medium-term business plan (FY2016 to FY 2020) identifies three strategic pillars: 1) Pursuit of the idealof Haneda Airport, 2) Expansion of our business domain utilizing our strengths and the diversification of profits,
and 3) Reconstruction of our profit base and the building of competitive advantages. We will continue toreposition and strengthen our organizational and governance structure to ensure that we effectively implement
these strategies.
Specifically, we will steadily make preparations for the Tokyo Olympic and Paralympic Games and ensure
the world’s top level of safety required for the gateway to Japan. Furthermore, we will work toward
comprehensive branding of Haneda Airport, such as consecutive award-winning of Skytrax’s global ranking,while promoting regional revitalization efforts as well as the introduction of the latest technology. We will also
expand our business scope through cross-industry alliances and business development efforts outside of the
airport. Moreover, we will renovate the facility to enhance customer satisfaction and improve profits at Haneda’s
domestic passenger terminals and bring more efficiency by improving operations. Through these measures, wewill strive to strengthen the business foundation at Haneda Airport. In marketing, our main challenge in the shortterm lies in how we develop duty-free business in city central locations. We will take necessary measures toensure that we will benefit from growing domestic consumption made by inbound travelers which are expected-9-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)

to increase in the mid- to the long-term. Furthermore, we will work to implement our medium-term business planby promoting an environment that helps value-creation, increasing opportunities to have dialogues withshareholders and investors, as well as restructuring and strengthening our organizational structure and corporate
governance framework to increase the certainty of specific measures.
The JAT Group is committed to carrying out its responsibilities as an Airport Facilities Operator, whichconstructs, operates, and manages domestic terminals at Haneda Airport, in compliance with The Airport Act. To
fulfill this mission, based on our core management philosophy of establishing harmony between society andmedium-term business plan, the entire Group is working in earnest to improve the convenience, comfort, andfunctionality of its passenger terminal buildings by monitoring and taking into consideration various issues, suchas the condition of the Japanese economy as well as airline industry trends. We will continue to embrace a“customer-centric” philosophy, ensure safety, and steadily move ahead with measures to consistently create value
at Haneda Airport and contribute to the advancement of air transportation. Through these efforts, we proudly
strive to enhance the corporate value of the entire JAT Group.

4.

Basic approach on selection of accounting standards

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

- 10 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)

5. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)

ASSETS
Current assets
Cash and deposits
Accounts receivable
Marketable securities
Merchandise and finished products
Raw materials and stored goods
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery, equipment and vehicles (net)Land
Lease assets
Accumulated depreciation and impairment loss
Lease assets (net)
Construction in progress
Other tangible fixed assets
Accumulated depreciation and impairment loss
Other tangible fixed assets (net)Total tangible fixed assets
Intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit assets
Other investments
Total investments and other assets
Total fixed assets
TOTAL ASSETS- 11 -FY2014(As of March 31, 2015)

FY2015(As of March 31, 2016)

46,974
14,383
5,485
122
1,158
1,529
(174)
69,48029,667
17,151
14,002
9,445
137
1,241
2,570
(12)
74,203272,828(181,513)
91,314
10,417(8,567)
1,849
10,466
2,938(1,966)971
203
26,734(22,086)
4,647
109,453
1,416

276,109(189,289)
86,81910,430(8,215)2,214
10,466
1,996(1,034)962
329,758(23,423)6,334
106,801
1,763

22,994
6,664
5,290
197
2,731
37,878
148,748
218,229

24,678
6,665
5,384
50
2,995
39,774
148,339
222,542Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)(Millions of yen)

LIABILITIESCurrent liabilities
Accounts payable
Short-term loans payable
Income taxes payable
Allowance for employees’ bonuses
Accrued expenses
Allowance for directors’ bonuses
Other current liabilities
Total current liabilities
Fixed liabilities
Bonds with stock acquisition rights
Long-term loans payable
Lease obligations
Net defined benefit liabilities
Asset retirement obligations
Other fixed liabilities
Total fixed liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS- 12 -FY2014(As of March 31, 2015)

FY2015(As of March 31, 2016)

7,238
11,402
3,233
1,165
7,689
196
7,104
38,0298,038
10,666
2,868
1,378
13,699247
6,457
43,35730,14828,328
655
4,409
456
3,672
67,669105,699

30,122
21,162
761
4,829
458
3,457
60,790104,148

17,48921,30973,252(3,242)
108,808

17,48921,33779,929(3,244)
115,512

4,405

4,906

(2,816)
56
(850)
795
2,926
112,530
218,229(3,127)55(1,379)454
2,427
118,394
222,542Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)

FY2014(from April 1, 2014
to March 31, 2015)
Operating revenues
Rent revenue
Facility user charges revenue
Other revenues
Sale of merchandise
Sale of food and beverage
Total operating revenues
Cost of sales
Cost of sales of merchandise
Cost of sales of food and beverage
Total cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and wages
Provision for employees’ bonuses
Provision for directors’ bonuses
Expenses for retirement benefits
Rent expenses
Outsourcing and commission
Depreciation expenses
Other costs and expenses
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Contributions in aid of construction
Equity in gains of affiliates
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of fixed assets
Bond issuance costs
Miscellaneous expenses
Total non-operating expenses
Ordinary income- 13 -FY2015(from April 1, 2015
to March 31, 2016)

12,895
17,917
19,534
108,750
14,406
173,505

12,90017,851
23,907
133,647
15,827204,134

80,746
9,210
89,95683,54899,956
10,114110,070
94,064

8,408
1,103
196
990
10,342
17,626
11,872
23,11973,659
9,888

9,233
1,340
245
913
12,67922,320
11,232
24,79582,761
11,302

520
200
326
1,315
615
2,979

649
237
84
1,529
588
3,089

746
55
136
80
1,018
11,849

556
107
－
73
737
13,654

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)(Millions of yen)

FY2014(from April 1, 2014
to March 31, 2015)
Extraordinary gains
Gains on sales of investment securities
Total extraordinary gains
Extraordinary loss
Loss on sales of shares of subsidiaries and associates
Impairment loss
Loss on retirement of fixed assets
Loss on valuation of other investments
Loss on sales of other investments
Total extraordinary loss
Income before income taxes and non-controlling interests
Income taxes – current
Income taxes – deferred
Total income taxes
Net income before non-controlling interests
Net income (loss) attributable to non-controlling interests
Net income attributable to owners of the parent- 14 -FY2015(from April 1, 2015
to March 31, 2016)

－
－

24
24

22
－
307
－
－
330
11,519
4,576
299
4,875
6,643
(4)
6,648

－
30
178
6
4
219
13,459
4,965
(31)
4,933
8,525
(344)
8,870

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income before non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests- 15 -FY2014(from April 1, 2014
to March 31, 2015)
6,643

FY2015(from April 1, 2015
to March 31, 2016)
8,525

2,319
5
686

501
(1)
(603)

(171)

(312)

2,840
9,483

(415)
8,110

9,496

8,529

(12)

(419)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)(3) Consolidated Statements of Changes in Shareholders’ Equity
FY2014 (from April 1, 2014 to March 31, 2015)(Millions of yen)
Shareholders’ equity

Balance at the beginning of current period
Cumulative effects of changes inaccounting policies
Restated balanceCommon stock

Capital surplus

17,48921,309Retainedearnings

Treasury stock

66,839(3,240)

1,065
17,48921,30967,904

Total
shareholders’equity102,397
1,065(3,240)103,462

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)(1,299)(1,299)

6,648

6,648
(2)

(2)

Total changes during current period

－

－

5,348

(2)

5,346

Balance at the end of current period

17,48921,30973,252(3,242)

108,808

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Deferred gains
or losses onhedges2,099(2,626)

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income51(1,583)(2,058)2,099(2,626)51(1,583)(2,058)

2,306

(190)

5

732

2,853

Total changes during current period

2,306

(190)

5

732

2,853

Balance at the end of current period

4,405(2,816)

56

(850)

795

Balance at the beginning of current period
Cumulative effects of changes inaccounting policies
Restated balance

Foreigncurrencytranslation
adjustment

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

Balance at the beginning of current period
Cumulative effects of changes inaccounting policies
Restated balance

Non-controllinginterests
1,527

Total net assets
101,866

96

1,161

1,624

103,028

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes of items other than shareholders’equity during current period (net)(1,299)
6,648
(2)
1,301

4,155

Total changes during current period

1,301

9,501

Balance at the end of current period

2,926

112,530- 16 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)

FY2015 (from April 1, 2015 to March 31, 2016)(Millions of yen)
Shareholders’ equity

Balance at the beginning of current period

Common stock

Capital surplus

17,48921,309Retainedearnings

Treasury stock

73,252(3,242)

Total
shareholders’equity108,808

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes in shareholders’ equity due totransaction with non-controlling interests
Changes of items other than shareholders’equity during current period (net)(2,193)(2,193)

8,870

8,870
(1)

28

(1)
28

Total changes during current period

－

28

6,677

(1)

6,703

Balance at the end of current period

17,48921,33779,929(3,244)

115,512

Accumulated other comprehensive income
Deferred gains
or losses onhedges4,405(2,816)

500

(311)

(1)

(528)

(340)

Total changes during current period

500

(311)

(1)

(528)

(340)

Balance at the end of current period

4,906(3,127)55(1,379)454

Balance at the beginning of current period

Foreigncurrencytranslation
adjustment

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income
56
(850)
795

Valuationdifference on
available-for-salesecurities

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes in shareholders’ equity due totransaction with non-controlling interests
Changes of items other than shareholders’equity during current period (net)

Balance at the beginning of current period

Non-controllinginterests
2,926

Total net assets
112,530

Changes during current period
Dividend from retained earnings
Net income attributable to owners of theparentPurchase of treasury stock
Changes in shareholders’ equity due totransaction with non-controlling interests
Changes of items other than shareholders’equity during current period (net)(2,193)
8,870
(1)
(48)

(20)

(450)

(791)

Total changes during current period

(498)

5,864

Balance at the end of current period

2,427

118,394- 17 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)(4) Consolidated Statements of Cash Flows(Millions of yen)

FY2014(from April 1, 2014
to March 31, 2015)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for employees’ bonuses
Increase (decrease) in allowance for directors’ bonuses
Increase (decrease) in net defined benefit liabilities
Decrease (increase) in net defined benefit assets
Interest and dividends income
Interest expenses
Bond issuance costs
Equity in losses (earnings) of affiliates
Loss (gain) on sales of investment securities
Loss (gain) on sales of shares of subsidiaries andassociates
Loss on retirement of tangible fixed assets
Loss (gain) on sales of tangible fixed assets
Decrease (increase) in accounts receivable – trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in accounts payable - trade
Increase (decrease) in other current liabilities
Increase (decrease) in other fixed liabilities
OthersSubtotalInterest and dividends received
Interest paid
Income and other taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of tangible fixed assets
Proceeds from sales of shares of subsidiaries andassociates
Proceeds from sales of tangible fixed assets
Purchase of intangible fixed assets
Purchase of long-term prepaid expenses
Payments of long-term loans receivable
Other payments
Other proceeds
OthersNet cash provided by (used in) investing activities- 18 -FY2015(from April 1, 2015
to March 31, 2016)

11,51911,954
－
113
25
329
(96)
(721)
746
136
(1,315)－

13,45911,311
30
212
51
(88)
(190)
(887)
556
－
(1,529)
(24)

22

－

307
(2)
(4,825)(1,128)
409
1,501
3,997
(109)
(87)
22,774800(760)(3,294)
19,520286(2)(2,767)(3,975)
(896)
801
4,383
(149)
(148)
20,432876(568)(5,505)
15,235(34)(63)－(3,677)

(27)
(1)
25
(6,734)

786

－

4
(281)
(545)
(1)
(318)
120
3
(4,008)

30
(649)
(39)
(3)
(468)
55
2
(7,810)Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)(Millions of yen)

FY2014(from April 1, 2014
to March 31, 2015)
Cash flows from financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds with stock acquisitionrightsRepayments of lease obligations
Payments to non-controlling shareholders
Proceeds from stock issuance to non-controllingshareholders
Dividends paid by parent company
Dividends paid to non-controlling shareholders
OthersNet cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period- 19 -FY2015(from April 1, 2015
to March 31, 2016)－(12,272)

3,500(11,402)30,013

－

(698)
－

(611)
(20)

539

－

(1,299)(28)(2)
16,251(2,193)(31)(1)(10,759)(0)2

31,763
15,13346,897(3,332)
46,89743,565

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)(5) Notes on the Consolidated Financial Statements(Notes on the Premise of a Going Concern)
There is nothing to report.
(Notes on Changes in Accounting Policies)(Application of accounting standard for business combinations)
From the beginning of fiscal year ended March 31, 2016, the Company has applied the "Accounting Standard
for Business Combinations" (ASBJ Statement No. 21 of September 13, 2013, hereinafter "Business Combinations
Accounting Standard") , the "Accounting Standard for Consolidated Financial Statements" (ASBJ Statement No.22
of September 13, 2013, hereinafter "Consolidation Accounting Standard") and the "Accounting Standard forBusiness Divestitures" (ASBJ Statement No.7, September 13, 2013, hereinafter "Business Divestitures AccountingStandard") and other standards. With this application, the Company has started to record as capital surplus, thedifference arising from changes of the Company's equity ownership interest in subsidiaries in which it continues tocontrol, and to book acquisition-related costs as expenses for the fiscal year in which the transaction took place.
With regard to business combinations executed on or after April 1, 2015, the Company has started to reflect theadjustments to the allocation of acquisition cost as a result of the finalization of provisional accounting treatment in
the consolidated financial statements in which the business combination is executed. The Company has alsochanged the presentation method of net income, etc., and changed the presentation from minority interests tonon-controlling interests. To reflect the changes in the presentation of the consolidated financial statements, theconsolidated financial statements for the previous fiscal year ended March 31, 2015 have been reclassified.
With the application of the Business Combinations Accounting Standard, the Company has followed thetransitional treatment set forth in Article 58-2 (4) of the Business Combination Accounting Standard, Article 44-5
(4) of the Consolidation Accounting Standard and Article 57-4 (4) of the Business Divestitures AccountingStandard, the Company has applied these standards from the beginning of the period under review.
As a result, both ordinary income and income before income taxes and non-controlling interests for the current
fiscal year have decreased by ¥28 million. Capital surplus at year-end has increased by ¥28 million.
In the Consolidated Statement of Cash Flows, cash flows related to purchases of subsidiary shares not resulting
in change in scope of consolidation are listed under “Cash flows from financing activities”.
Capital surplus in the Consolidated Statements of Changes in Shareholders’ Equity has increased by ¥28
million at the current year end.
Net income per share and diluted net income per share have decreased by 0.35 yen and 0.33 yen respectively.

(Notes on Changes in Presentation)(Consolidated Balance Sheets)“Accrued expenses”, which was included in “Other current liabilities” under “Current liabilities” in the previous
fiscal year, is recorded as separate item in the current fiscal year because “Accrued expenses ” now accounts for 5% ormore than total of liabilities and net assets. To reflect this change in presentation, the consolidated financial statementsof the previous fiscal year have been reclassified.
As a result, ¥14,793 million recorded as “Other current liabilities” under “Current liabilities” in the consolidatedbalance sheets of the previous fiscal year has been reclassified as ¥7,689 million of “Accrued expenses” and ¥7,104
million of “Other current liabilities”.

(Consolidated Statements of Income)“Loss on retirement of fixed assets”, which was included in “Miscellaneous expenses” under “Non-operating
expenses” in the previous fiscal year, is recorded as separate item in the current fiscal year because “Loss onretirement of fixed assets” now accounts for 10% or more than total of non-operating expenses. To reflect this change
in presentation, the consolidated financial statements of the previous fiscal year have been reclassified.
As a result, ¥135 million recorded as “Miscellaneous expenses” under “Non-operating expenses” in the
consolidated statements of income of the previous fiscal year has been reclassified as ¥55 million of “Loss onretirement of fixed assets” and ¥80 million of “Miscellaneous expenses”.

- 20 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)(Notes on Consolidated Balance Sheets)
1. Assets pledged as collateral and corresponding liabilities with collateral
The following are assets pledged as collateral.
(Millions of yen)

FY2014(As of March 31, 2015)
75,072
53
75,125

Buildings and structures
Land
Total

FY2015(As of March 31, 2016)
70,40753
70,461

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

FY2014(As of March 31, 2015)
8,364
17,766
26,130

Short-term loans payable
Long-term loans payable
Total

FY2015(As of March 31, 2016)
6,244
11,522
17,766

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

FY2014(As of March 31, 2015)
3,885
6,660

Investment securities (shares)
Investment securities (corporate bonds)

FY2015(As of March 31, 2016)
4,975
6,660

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

FY2014(As of March 31, 2015)
Japan Airport Delica Inc.
468
(borrowing)
548 million yen

FY2015(As of March 31, 2016)
Japan Airport Delica Inc.
335
(borrowing)
548 million yen

4. Amount of reduction entry
Due to receipt of government subsidy, etc. for the acquisition of assets, reduction entry of the following amount isdeducted from the acquisition costs of tangible fixed assets.
(Millions of yen)

Buildings and structures

FY2014(As of March 31, 2015)88- 21 -FY2015(As of March 31, 2016)88

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)(Notes on Consolidated Statements of Income)
1. Impairment loss
The JAT Group recognized impairment loss on the assets as follows:
FY2014 (from April 1, 2014 to March 31, 2015)
There is nothing to report.
FY2015 (from April 1, 2015 to March 31, 2016)
Location
Use
Type
Impairment loss
Ota-ku, TokyoStore (Food andBuildings and structures, machinery,
30 million yen
beverage)equipment and vehicles, and others
The JAT Group classifies assets into groups primarily according to business locations.
By examining impairment for fixed assets based on the groupings, the business assets owned by the Company
and a consolidated subsidiary whose profitability declined were identified. The carrying amount of those assets was
reduced to the recoverable value and the reduced amount was recognized as impairment loss. The loss consists of¥7 million for buildings and structures, ¥11 million for machinery, equipment and vehicles, and ¥11 million forothers.

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

FY2014(from April 1, 2014
to March 31, 2015)
300
6
307

Buildings and structures
OthersTotal

FY2015(from April 1, 2015
to March 31, 2016)
176
1
178

(Notes on Consolidated Statements of Cash Flows)
Relationship between the closing balance of cash and cash equivalents and the value of items listed on the consolidatedbalance sheets(Millions of yen)

FY2014(from April 1, 2014
to March 31, 2015)
46,974(76)
46,897

Cash and deposits
Marketable securities
Time deposits with a maturity greater than 3 months
Cash and cash equivalents- 22 -FY2015(from April 1, 2015
to March 31, 2016)
29,667
14,002(104)
43,565

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)(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 in order to decide how to allocate management
resources and evaluate their performances.
The Company is primarily engaged in the management of passenger terminal buildings and the provision ofservices to users at Haneda Airport. Business divisions at the Company’s headquarters develop comprehensive
business strategies and pursue business activities.
The Company is, therefore, composed of business segments with different services based on the businessdivisions. Its three reportable segments are the facilities management operations, merchandise sales operations, andfood and beverage operations.
The segment of facilities management operations leases, maintains and repairs, and operates passenger terminal
facilities at Haneda Airport. It also provides services for passengers. The segment of merchandise sales operations is
engaged in retail sales of products to passengers and others, wholesales of products to companies operating airport
terminals and others, and other activities incidental to these two sales operations. The segment of food and beverage
operations provides food and beverage services to parties including users of Haneda Airport and Narita International
Airport. It is also engaged in the production and sales of in-flight meals and other incidental activities.
2. Method of calculations of sales, income (loss), assets, liabilities, and other items by reportable segments
Accounting methods for reportable business segments are, in general, the same as those described in “Basic
Important Conditions to Prepare the Consolidated Financial Statements.”
Segment income (loss) is based on operating income (loss).
Intersegment sales and transfers are based on prevailing market price.
3. Sales, income (loss), assets, liabilities, and other items by reportable segments
FY2014 (from April 1, 2014 to March 31, 2015)(Millions of yen)

Reportable segments

Consolidated
financialstatements

Facilities
Management

Merchandise
Sales

49,036

108,751

15,717

173,505-

173,505

1,951

672

2,415

5,039

(5,039)-50,987
5,369
109,333

109,424
8,835
29,38818,132
178
13,183

178,544
14,383
151,904(5,039)(4,495)66,325173,505
9,888
218,229

Depreciation andamortization

10,005

1,092

456

11,554400

11,954

Increase in tangible fixed
assets and intangible fixed
assets

3,540

1,040

340

4,921

112

5,034

Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income
Segment assets
Other items

Food andBeverage

Adjustments- 23 -Total

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2016 (FY2015)

FY2015 (from April 1, 2015 to March 31, 2016)(Millions of yen)

Reportable segments

Consolidated
financialstatements

Facilities
Management

Merchandise
Sales

52,880133,718

17,535204,134-

204,134

2,006

753

2,528

5,288

(5,288)-54,887
6,135
107,179

134,471
9,476
38,39020,063564
14,551

209,422
16,176160,121(5,288)(4,873)62,421

204,134
11,302
222,542

Depreciation andamortization

9,277

1,231

430

10,939372

11,311

Increase in tangible fixed
assets and intangible fixed
assets

5,393

3,110

574

9,079

274

9,354

Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income
Segment assets
Other items

Food andBeverage

Adjustments- 24 -

Total