May 08, 2015

Financial Report for the Year Ended March 31, 2015 (FY2014) [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: Hiroshi Miyauchi, Managing Director, Senior Vice President, Administration Department
TEL 03-5757-8030
Scheduled date of annual general meeting of shareholders: June 26, 2015
Scheduled date of filing securities report: June 26, 2015
Scheduled date of commencing dividend payment: June 29, 2015
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, 2015 (April 1, 2014 to March 31, 2015)(1) Consolidated Business Results(%: Change from the previous period)
Operating revenues

FY2014FY2013Operating income

%
17.9
8.1

Millions of yen

173,505
147,116(Note) Comprehensive income: FY2014

Millions of yen

9,888
6,194

¥9,483 million (142.3%)

Net income per
share
Yen

Diluted net income
per share
Yen

81.84
36.68

81.56
-

FY2014FY2013(Reference) Equity in earnings (losses) of affiliates: FY2014

Ordinary income

%
59.6
48.2

Millions of yen

FY2013¥3,914 million (117.8%)

11,849
5,723

Millions of yen

6,648
2,979

%
123.1
83.4

%

Ordinary income tototal assets%

Operating income tooperating revenues
%

6.3
3.0

5.9
3.1

5.7
4.2

Return on equity¥1,315 million

Net income

%
107.0
56.1

FY2013¥(706) million(2) Consolidated Financial Position
Total assets

Equity capital tototal assets

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

218,229
185,358

112,530
101,866

50.2
54.1

1,349.32
1,235.25

As of March 31, 2015
As of March 31, 2014

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

¥109,603 million

As of March 31, 2014

¥100,339 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

19,52015,204(4,008)(9,660)

16,251(6,574)46,897
15,133

FY2014FY2013
2. Dividends

Dividends per share

Dividend
payout ratio(consolidated)

Dividends on
net assets(consolidated)

Q1-EndQ2-EndQ3-EndYear-End

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

-

6.00
9.00

-

7.00
12.00

13.00
21.00

1,055
1,705

35.4
25.7

1.1
1.6

-

12.00

-

12.00

24.00

FY2013
FY2014FY2015(Forecast)

AnnualTotal
dividends(annual)

25.7

3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2016 (April 1, 2015 to March 31, 2016)(%: 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

91,800190,000

11.5
9.5

5,200
10,000

3.3
1.1

5,900
11,300

(4.7)
(4.6)

3,900
7,600

(1.0)
14.3

48.01
93.56

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, 2015
84,476,500 shares
As of March 31, 2014
2) Number of treasury stock at the year-end:
As of March 31, 2015
3,247,182 shares
As of March 31, 2014
3) Average number of shares outstanding during the period:
Year ended March 31, 2015
81,229,644 sharesYear ended March 31, 2014

(Reference) Summary of Non-Consolidated Financial Results
1. Financial Results for the Year Ended March 31, 2015 (April 1, 2014 to March 31, 2015)(1) Non-Consolidated Business Results
Operating revenues
Millions of yen

FY2014FY2013141,024
118,343

Operating income

%
19.2
6.9

6,826
3,914

3,246,682 shares
81,229,979 shares(%: Change from the previous period)

Ordinary income

%
74.4
60.4

Yen

Diluted net income per
share
Yen

53.13
29.04

52.95
-

Net income per share

FY2014FY2013

Millions of yen

84,476,500 shares

Millions of yen

7,691
4,229

Net income

%
81.9
52.8

%
83.0
50.4

Millions of yen

4,315
2,358

(2) Non-Consolidated Financial Position
Total assets

As of March 31, 2015
As of March 31, 2014
(Reference) Equity capital:
2.

Equity capital tototal assets

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

204,509
174,063

96,55090,70147.2
52.1

1,188.62
1,116.60

As of March 31, 2015 ¥96,550 million

As of March 31, 2014 ¥90,701 million

Forecast of Non-Consolidated Financial Results for the Year Ending March 31, 2016 (April 1, 2015 to March 31, 2016)(%: 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

75,400156,800

13.5
11.2

4,200
8,200

(2.9)
6.6

2,700
5,400

(14.2)
25.1

33.24
66.48

* 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 15, 2015 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, 2015 (FY2014)

Contents of the Appendix Materials
1.

BUSINESS RESULTS ................................................................................................................................. - 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, 2015 AND
THE YEAR ENDING MARCH 31, 2016 ....................................................................................................................... - 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 Comprehensive Income) ....................................................................................- 23 (Notes on Consolidated Statements of Changes in Shareholders’ Equity) .......................................................................- 24 (Notes on Consolidated Statements of Cash Flows) ....................................................................................................- 25 (Segment Information) ...........................................................................................................................................- 26 --1-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)

1. Business Results(1) Analysis of Consolidated Business Results1) Summary of earnings for the fiscal year ended March 31, 2015
During the fiscal year ended March 31, 2015, the Japanese economy experienced a gradual trend of recovery,as the negative impact caused by the downturn in demand following the consumption tax hike has gradually been
diminishing. Looking ahead, improvement in employment and income is likely to continue and various
government policies, coupled with declining oil prices, are expected to support economic recovery. Nevertheless,downside risks remain that could weaken the domestic economy, such as an economic downturn in overseas
markets.
The airline industry needs to further strengthen its competitiveness for a number of reasons that aretransforming our business environment, including 1) increased competition caused by industry liberalization(open skies agreements) and expansion of routes by low-cost carriers (LCCs), 2) ongoing efforts to reform airport
management structures aimed at enhancing efficiency by integrating airport land and terminal building operations,3) the commencement of comprehensive discussions aimed at strengthening functions of metropolitan airports,
and 4) the announcement of a plan for improving land access to Haneda Airport, including the construction of a
new train line. Passenger volume on domestic flights at Haneda Airport for the current fiscal year increased by
2% from the previous year. As the number of visitors to Japan from overseas exceeded 14 million annually, andHaneda increased its landing slots for international flights, passenger volume on international flights at Haneda
Airport rose by more than 40% from the previous year.
Under these circumstances, the Japan Airport Terminal (JAT) Group has endeavored to take advantage of thetrend of steadily growing inbound travelers from abroad. At duty-free shops, we aim to expand revenue by
improving average purchase prices and purchase rates. In addition, our marketing efforts were successful inattracting travelers from China and Southeast Asian countries, leading to a significant revenue increase at a pacethat actually surpassed the growth rate of passenger volume. These conditions significantly contributed to thefinancial results for the current fiscal year.
FY 2014 was the second year of the medium-term business plan (FY 2013 through FY 2015). Under the plan,
we 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 groupbusinesses and 4) Strengthening human resources and organizational capabilities.
We made efforts to improve the profitability of our group businesses by expanding the operations ofduty-free shops, as well as those of facility maintenance and management, in order to take advantage of the
expansion of Haneda’s international passenger terminal in line with the increased international flights after
March 2014. In September 2014, “Royal Park Hotel THE Haneda” was opened as part of our efforts to better
serve our customers’ needs. The hotel is directly connected to airport terminal building and offers some rooms
designed specifically for transiting customers. This represents the first case of its type in Japan and it is expected
to help improve airport functionality, customer convenience, and our profitability.
As a step toward the future of the airport’s operation, we introduced a new structure involving passenger
service facility charges at domestic terminal public areas from April 2014. While these charges were previously
paid by the airlines, they are now paid for by airline passengers. This change is intended to create greatertransparency with respect to the cost-and-benefit relationship involving the use of the airport facility. Along with
this, we are aiming to improve customer convenience to further fulfill our responsibility as an airport facility
operator. For example, a transfer facility between the domestic and international terminals was constructed at the
airport’s domestic passenger terminal in March 2014 in conjunction with the expansion of international flights at
Haneda. Moreover, in July 2014, baggage carts became available for exclusive use in gate lounges locatedbeyond security screening points. Furthermore, a renovation project began at domestic passenger Terminal 1 inFebruary 2015.
With respect to retail facilities, the second outlet of “Isetan Haneda Store (Men)”, whose first shop has been
popular among businessmen using Haneda Airport, was opened at Passenger Terminal 2 in June 2014. In addition,
to better meet the potential needs of female travelers, “Isetan Haneda Store (Ladies)” was opened in July 2014 at
Terminal 1. These efforts helped to revitalize retail business.
As a result, consolidated operating revenues for the current fiscal year totaled ¥173,505 million (up 17.9%
from the previous fiscal year), with operating income of ¥9,888 million (up 59.6%), ordinary income of ¥11,849
million (up 107.0%), and net income of ¥6,648 million (up 123.1%).
In recognition of these initiatives, in the Global Airport Ranking conducted by Skytrax in the UK in August
2014, Tokyo International Airport Haneda was awarded 5-Star Airport status, the top quality ranking, for the firsttime in the history of Japanese airports. Haneda was evaluated to be among the best in the world in terms of thequality of its terminal facilities and services overall. In March 2015, Haneda’s domestic terminals were awarded
first place in the World’s Best Domestic Airport category for the third year in a row. In fact, Haneda was rated
highly among across various categories, including first place in the World’s Best Airport Security Processing
category, second place in the Best Airport Terminal Cleanliness category, and second place in the World’s Best
-2-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)

Airport Staff category. We will work cooperatively as an entire airport to move together in our preparations forthe 2020 Tokyo Olympics and Paralympics Games. With the highest priority placed on airport customers, we will
ensure the safety of the airport and will provide services that offer 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 air transportation.
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]
Rent revenue fell from the previous year, due to revised rents for some office tenants at Haneda’s domestic
passenger terminal and a decline in revenue from properties located outside of the airport.
Revenue from facility user charges surpassed the figure for the previous year primarily because growth inpassenger volume boosted facility user charges revenue for domestic terminal facilities.
Other revenues increased significantly from the previous year. This was mainly because of an increase inrevenue from outsourcing business at Haneda’s international terminal, the addition of revenue from “Royal Park
Hotel THE Haneda” which opened in September 2014, and an increase in airport lounge revenue following the
growth in passenger volume.
As a result, operating revenues from the facilities management segment increased to ¥50,987 million (up10.3% from the previous year) and operating income for the segment rose to ¥5,369 million (up 46.9 %) due tothe revenue increase and decline in depreciation.
[Merchandise Sales]
Sales at international terminal stores and other (wholesale) revenues rose significantly, because inboundvisitors to Japan increased greatly due to the weakening of the Yen and the easing of visa requirements forSoutheast Asian countries.
Sales at international terminal stores increased significantly from the previous year. This increase isattributed to the improvement in average purchase prices and purchase rates as well as an increase in the sales ofluxury brands as a result of marketing efforts at Narita International Airport and Kansai International Airport
targeting inbound travelers from China and Southeast Asian 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 wellas to other airports.
Sales at domestic terminal stores exceeded those of the previous year due to the development of new shops,
such as the second outlet of “Isetan Haneda Store (Men)” and “Isetan Haneda (Lady)” in the departure gatelounge, despite lower year-on-year growth in passenger volume.
As a result, operating revenues from the merchandise sales segment increased to ¥109,424 million (up24.1% from the previous year). Operating income for the segment grew to ¥8,835 million (up 35.6%) due toimprovements in pricing and gross margins across merchandise including duty-free goods.
[Food and Beverage]
Sales from food and beverage stores increased slightly from the previous year, as a result of growth inpassenger volume and the reorganization of shops.
Sales from in-flight meals fell short of levels in the previous year as foreign carrier passenger volume
decreased due to their use of smaller aircraft, despite an increase in the number of flights operated by foreign
carriers.
Other revenues rose due to an increase in outsourcing business operated in expanded spaces at international
passenger terminals.
As a result, operating revenues from the food and beverage segment totaled ¥18,132 million (up 3.1% fromthe previous year) in spite of difficult business conditions. Operating income for the segment rose to ¥178 million(up 20.8%) due to the effect of the revenue increase and various cost reductions.
We entered into a capital and business alliance agreement with LSG Catering Hong Kong Ltd. ("LSG") in
September 2014 aimed at strengthening the catering services of our consolidated subsidiary Cosmo EnterpriseCo., Ltd. ("Cosmo Enterprise"), which manufactures and sells in-flight meals. In this transaction, 20% of Cosmo
Enterprise’s shares owned by Japan Airport Terminal were assigned to LSG.
2) Forecast for the fiscal year ending March 31, 2016
Over the next fiscal year, the Japanese economy is expected to recover gradually for a number of reasons
including improvement in employment and income, falling oil prices, and various policy measures. However, thepossibility of an economic downturn in overseas markets poses downside risks that could weaken the domestic
economy.
-3-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)

In the airline industry, international passenger volume is expected to increase year-on-year, as a result of theongoing weak Yen, the promotion of inbound tourism, and the increase in flights, including the openings of newroutes by LCCs and other airlines. Indeed, the airline industry is undergoing dramatic changes, including industry
liberalization (open skies agreements), intensifying competition triggered by the expansion of LCCs, andongoing efforts to reform airport management structures aimed at promoting efficient operation by integrating
airport land and terminal building operations, the commencement of comprehensive discussions aimed atstrengthening functions of Tokyo metropolitan airports, and the announcement of a plan for improving land
access to Haneda Airport, including a new train line. These changes in our business environments necessitate thatour group further strengthen its competitiveness.
Under these conditions, our present expectations for earnings by segment are described below.
Facilities management operations are expected to generate better results than in FY2014 because expected
growth in passenger number is forecast to boost revenue from facility user charges as well as from our businessat Haneda’s international terminal.
Merchandise sales operations are forecast to rise year-on-year driven by the revenue increase resulting fromthe growing number of inbound travelers visiting Japan.
Food and beverage operations are expected to grow compared to FY2014, reflecting the increase in revenue
from in-flight meals despite the negative effect caused by the closure of stores.
Therefore, for consolidated performance in the fiscal year ending March 31, 2016 (FY2015), we forecast
operating revenue of ¥190,000 million (up 9.5% year-on-year), operating income of ¥10,000 million (up 1.1%),
ordinary income of ¥11,300 million (down 4.6%) due to a decrease in equity in earnings in affiliates, and net
income (attributable to owners of the parent) of ¥7,600 million (up 14.3%).
(2) Analysis of Consolidated Financial Position
1) Assets, liabilities and net assets[Assets]
Current assets increased by ¥37,392 million from the previous fiscal year end to ¥69,480 million. The
increase was primarily because cash and deposits increased by ¥31,798 million due to proceeds from issuance ofeuro yen zero coupon convertible bonds (bonds with stock acquisition rights) and because accounts receivable
increased by ¥4,825 million. Fixed assets decreased by ¥4,521 million from the previous fiscal year end to¥148,748 million, primarily due to a decline in tangible fixed assets by ¥6,728 million resulting from the progressof depreciation, despite an increase in investment securities by ¥4,314 million.
As a result, total assets increased by ¥32,870 million from the previous fiscal year end to ¥218,229 million.
[Liabilities]
Current liabilities increased by ¥6,557 million from the previous fiscal year end to ¥38,029 million, primarily
because of an increase in other current liabilities by ¥4,564 million and in accounts payable by ¥1,501 million.
Fixed liabilities increased by ¥15,650 million from the previous fiscal year end to ¥67,669 million, primarily
because bonds with stock acquisition rights increased by ¥30,148 million resulting from issuance of issuance ofeuro yen zero coupon convertible bonds (bonds with stock acquisition rights), despite a decrease in long-termloans payable by ¥11,402 million and in net defined benefit liabilities by ¥2,377 million.
As a result, total liabilities increased by ¥22,207 million from the previous fiscal year end to ¥105,699
million.
[Net assets]
Total net assets increased by ¥10,663 million to ¥112,530 million primarily because retained earnings
increased by ¥6,413 million and valuation difference on available-for-sale securities increased by ¥2,306 million.
As a result, the equity ratio was 50.2% (compared to 54.1% at the previous fiscal year end).
2) Cash flows
Cash and cash equivalents (hereinafter referred to as “cash”) at the current fiscal year end increased by¥31,763 million compared to the previous fiscal year end to ¥46,897 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 increased by ¥4,316 million (up 28.4%) from the previous fiscal
year to ¥19,520 million.
This was primarily due to an increase in income before income taxes and minority interests, despite anincrease in accounts receivable.
-4-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)[Cash flows from investing activities]
Net cash used in investing activities decreased by ¥5,651 million (down 58.5%) from the previous fiscal yearto ¥4,008 million.
This was largely due to a decrease in the purchase of investment securities.
[Cash flows from financing activities]
Net cash provided by financing activities increased by ¥22,826 million from the previous fiscal year to¥16,251 million, compared to a cash outflow of ¥6,574 million in the previous fiscal year.
This was mainly due to an increase in the proceeds from issuance of bonds with stock acquisition rights,
despite repayment of long-term borrowings.
Cash flow indicators
Equity ratio (%)
Equity ratio based on market
value (%)
Debt to cash flow ratio (years)
Interest coverage ratio (times)

FY201050.6

FY201151.7

FY201253.1

FY201354.1

FY2014
50.2

42.1

46.8

54.7

117.5

271.0

5.7
11.8

4.3
13.9

3.8
17.3

3.5
15.2

2.1
25.7

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, 2015 and the YearEnding March 31, 2016
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 ¥21 per share (of which ¥9 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 ¥24 pershare (of which ¥12 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 and-5-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)

outside 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.
(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, 2015 (FY2014)

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, 2015 (FY2014)

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.

*1

Japan Airport Techno Co., Ltd.

*1

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

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

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

*4
*4

Japan Airport Delica Inc.

Tokyo International Air Terminal Corporation *3*1. Consolidated subsidiary: 16 companies
Japan Duty Free Fa-So-La Isetan Mitsukoshi Co., Ltd. was established during the current fiscal year.
*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-

*1
*1
*1
*1

*1
*3

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)

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
In order to maximize the return on capital and thoroughly adopt management policies aimed at increasing
shareholder value, the JAT Group formulated a medium-term business plan. Under this plan, we will takes
necessary measures in facility development, revenue expansion, efficiency promotion, and other measures tosecure appropriate levels of earnings. Moreover, we aim to improve the Group’s performance measured in termsof return on assets (ROA) and return on equity (ROE), which we consider key performance indicators.
Furthermore, we will continue with 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, JAT Group is working 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 the airline industry, business environments surrounding our company are drastically changing. Suchchanges include the intensifying of competition caused by the liberalization of airline markets (Open Skies
agreements) and the introduction of new LCC routes, the ongoing efforts to enhance the efficiency of airport
management by integrating airport land and terminal building operations, and policies aimed at achieving 20
million inbound travelers in 2020. Moreover, discussions are underway over specific measures to strengthen thefunctions of Tokyo’s metropolitan airports, to increase landing slots in order to meet the anticipated demand by
the 2020 Tokyo Olympic and Paralympic Games, and to further improve land access to Haneda Airport.
Under these circumstances, in FY 2015, the last year under the medium-term business plan, our objective is“to achieve target profit margins while investing in capital expenditures that are needed in keeping with theinternationalization of Haneda Airport”.
In the medium to long term, JAT Group will leverage our sixty-year-long experience and knowhow inmanaging airport terminals to prepare for the Tokyo Olympic and Paralympic Games that will be held in five
years. Starting this year, we will manage and implement capital expenditure projects including the renovation ofexisting domestic terminals, as well as enhance our hospitality service and roll out multi language programs.
Furthermore, we will work in close collaboration with airline companies to enhance the attractiveness of terminalbuildings. We aim to strengthen the hub functions of Haneda Airport by contributing to regional revitalizationand collaboration between air transport and sightseeing with a view toward making Japan a moretourism-oriented country. With the prospect of further internationalizing Haneda Airport in line with increasing
landing slots, we will contribute to enhancing the function of metropolitan airports by striving to continuously
upgrade Haneda Airport, including potential projects for developing neighboring lands.
In the duty-free shops business, as part of our efforts to make our nation a more tourism-oriented country, weleveraged our expertise to establish a new company to develop duty-free business in city central locations inaddition to existing airport shops. The new company has proceeded with preparations for new shops that will
cooperate with the airport. This company will encourage the consumption of Japanese and non-Japanesecustomers flying outbound from airports and enhance their convenience, thereby expanding our non-airline
revenue. Furthermore, to ensure the future success of the airport’s operation, we plan to establish a new scheme
to help us generate stable revenue from airport operations. To do so, we will endeavor to utilize our knowhow todevelop new business at airports other than Haneda including our participation in the business activities ofoverseas airports.
-9-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)

To support these projects, we aim to improve the operational efficiency of our existing businesses and tostrengthen our human resources and organizational capabilities with a view toward enhancing JAT Group’s
corporate value. In the meantime, we will implement specific plans under the medium-term business plan,
thereby steadily adapting to changes in business environments.
In the Global Airport Ranking conducted by UK-based Skytrax, Haneda was recognized for meeting theworld’s top standard in terms of the quality of its terminal facilities and services overall. Its earning of the 5-Star
Airport status is an historic achievement because this represents the first time for an airport in Japan to receive
5-star rating. It is also noteworthy that, for the past three consecutive years, Haneda's domestic terminals wereawarded first place in the World's Best Domestic Airport category. In order to maintain our customers’ trust andtheir desire to return, we will endeavor to place airport users first and ensure that our terminals offer superior
convenience, comfort and functionality both in terms of facilities and services.

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 application 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, 2015 (FY2014)

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

ASSETS
Current assets
Cash and deposits
Accounts receivable
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 -FY2013(As of March 31, 2014)

FY2014(As of March 31, 2015)

15,175
9,558
4,369
108
1,003
1,885
(12)
32,08846,974
14,383
5,485
122
1,158
1,529
(174)
69,480272,769(174,638)
98,131
10,136(8,417)
1,719
10,4662,930(1,502)
1,428
325,906(21,472)
4,433
116,182
1,949

272,828(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

18,680
6,664
7,595
－
2,197
35,137
153,270
185,358

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

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)(Millions of yen)

LIABILITIESCurrent liabilities
Accounts payable
Short-term loans payable
Income taxes payable
Allowance for employees’ bonuses
Allowance for directors’ bonuses
Other current liabilities
Total current liabilities
Fixed liabilities
Bonds with stock acquisition rights
Long-term loans payable
Lease obligations
Net defined benefit liabilities
Asset retirement obligations
Other fixed liabilities
Total fixed liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS- 12 -FY2013(As of March 31, 2014)

FY2014(As of March 31, 2015)

5,737
12,272
2,010
1,052
170
10,22931,472

7,238
11,402
3,233
1,165
196
14,79338,029－39,730
1,216
6,786
449
3,836
52,01983,49230,14828,328
655
4,409
456
3,672
67,669105,699

17,48921,30966,839(3,240)102,397

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

2,099

4,405

(2,626)51(1,583)(2,058)
1,527
101,866
185,358(2,816)
56
(850)
795
2,926
112,530
218,229

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)

FY2013(from April 1, 2013
to March 31, 2014)
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
Amortization of negative goodwill
Equity in gains of affiliates
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Bond issuance costs
Miscellaneous expenses
Total non-operating expenses
Ordinary income- 13 -FY2014(from April 1, 2014
to March 31, 2015)

13,355
16,487
15,03887,462
14,772
147,116

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

64,9799,110
74,09073,02680,746
9,210
89,95683,548

8,021
989
170
971
9,083
13,92012,68020,992
66,831
6,194

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

360
212
0
122
－
619
1,315

520
200
326
－
1,315
615
2,979

896
706
－
184
1,786
5,723

746
－
136
135
1,018
11,849Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)(Millions of yen)

FY2013(from April 1, 2013
to March 31, 2014)
Extraordinary gains
Gain on sales of fixed assets
Government subsidy
Total extraordinary gains
Extraordinary loss
Loss on sales of shares of subsidiaries and associates
Impairment loss
Loss on reduction entry of fixed assets
Loss on retirement of fixed assets
Other extraordinary loss
Total extraordinary loss
Income before income taxes and minority interests
Income taxes – current
Income taxes – deferred
Total income taxes
Income before minority interests
Minority interests income (loss)
Net income- 14 -FY2014(from April 1, 2014
to March 31, 2015)

90
89
180

－
－
－

－
87
88
42
16
235
5,668
2,905
(242)
2,662
3,005
25
2,979

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

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)

Consolidated Statements of Comprehensive Income(Millions of yen)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of theparentComprehensive income attributable to minority
interests- 15 -FY2013(from April 1, 2013
to March 31, 2014)
3,005

FY2014(from April 1, 2014
to March 31, 2015)
6,643

431
31
－

2,319
5
686

446

(171)

909
3,914

2,840
9,483

3,886

9,496

27

(12)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)(3) Consolidated Statements of Changes in Shareholders’ Equity
FY2013 (from April 1, 2013 to March 31, 2014)(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

64,874(3,239)Total
shareholders’equity100,434-

17,48921,30964,874(3,239)100,434

Changes during current period
Dividend from retained earnings(1,015)(1,015)

Net income

2,979

2,979

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

(0)

(0)

Total changes during current period

－

－

1,964

(0)

1,963

Balance at the end of current period

17,48921,30966,839(3,240)102,397

Accumulated other comprehensive income

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

Valuationdifference on
available-for-salesecurities

Deferred gains
or losses onhedges

1,670(3,073)Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income20－(1,382)

1,670(3,073)20－(1,382)

428

446

31

(1,583)(676)

Foreigncurrencytranslation
adjustment

Changes during current period
Dividend from retained earnings
Net income
Purchase of treasury stock
Changes of items other than shareholders’equity during current period (net)Total changes during current period

428

446

31

(1,583)(676)

Balance at the end of current period

2,099(2,626)51(1,583)(2,058)

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

Minority
interests
1,581

Total net assets
100,633-

1,581

100,633

Changes during current period
Dividend from retained earnings(1,015)

Net income

2,979

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

(0)
(53)

(730)

Total changes during current period

(53)

1,233

Balance at the end of current period

1,527

101,866- 16 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)

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(1,299)(1,299)Net income

6,648

6,648

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

(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

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

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

Foreigncurrencytranslation
adjustment

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

Minority
interests
1,527

Total net assets
101,866

96

1,161

1,624

103,028

Changes during current period
Dividend from retained earnings(1,299)Net income

6,648

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

(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- 17 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)(4) Consolidated Statements of Cash Flows(Millions of yen)

FY2013(from April 1, 2013
to March 31, 2014)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of negative goodwill
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
Increase (decrease) in allowance for employees’
retirement benefits
Interest and dividends income
Interest expenses
Bond issuance costs
Equity in losses (earnings) of affiliates
Loss (gain) on sales of shares of subsidiaries andassociates
Loss on retirement of tangible fixed assets
Loss (gain) on sales of tangible fixed assets
Government subsidy
Loss on reduction entry of 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
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
Proceeds from government subsidy
Other payments
Other proceeds
OthersNet cash provided by (used in) investing activities- 18 -FY2014(from April 1, 2014
to March 31, 2015)

5,668
12,747
87
(122)
155
18
4,679
－

11,51911,954
－
－
113
25
329
(96)

(4,770)

－

(572)
896
－
706

(721)
746
136
(1,315)

－

22

42
(90)
(89)
88
(28)
(178)
(138)
674
(1,122)(306)
119
18,463528(1,000)(2,787)
15,204307(2)－－(4,825)(1,128)
409
1,501
3,997
(109)
(87)
22,774800(760)(3,294)
19,520(26)(5,329)(4,074)(34)(63)(3,677)

－

786

102
(338)
(32)
(2)
89
(94)
36
7
(9,660)

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

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)(Millions of yen)

FY2013(from April 1, 2013
to March 31, 2014)
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
Proceeds from stock issuance to minority shareholders
Dividends paid by parent company
Dividends paid to minority 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 -FY2014(from April 1, 2014
to March 31, 2015)

7,300(12,104)－(12,272)－

30,013(725)－(1,015)(28)(0)(6,574)(698)
539(1,299)(28)(2)
16,25112(0)(1,017)
16,151
15,13331,763
15,13346,897

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)(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 retirement benefits)
From the current fiscal year, the Company has applied the main clauses of Paragraph 35 of the “AccountingStandard for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012, hereinafter “Retirement Benefits
Accounting Standard”) and the main clause of Paragraph 67 of the “Guidance on Accounting Standard for
Retirement Benefits” (ASBJ Guidance No. 25, March 26, 2015, hereinafter “Retirement Benefits Guidance”). With
this application, the Company has reviewed the calculation methods of retirement benefit obligation and service
cost. The method of calculating the portion of expected benefits attributed to periods was changed from thestraight-line basis to the benefit formula basis. The method of determining the discount rates was changed from themethod based on the number of years approximate to the employees’ average remaining service periods to themethod using the single weighted-average discount rate that reflects the estimated period and amount of benefit
payment in each period.
With the application of the Retirement Benefits Accounting Standard, the Company has followed thetransitional treatment set forth in Paragraph 37 of the Retirement Benefits Accounting Standard. The amount offinancial impact resulting from the change in calculation methods of retirement benefit obligation and service costwere added to or deducted from retained earnings as of April 1, 2014.
As a result of the change, as of the beginning of the current fiscal year, net defined benefit asset increased by¥68 million, net defined benefit liability decreased by ¥1,615 million and retained earnings increased by ¥1,065
million. In addition, the financial impact of this change on operating income, ordinary income and income before
income taxes and minority interests for the current fiscal year was immaterial.
(Notes on Changes in Presentation)(Consolidated Statements of Income)“Contributions in aid of construction”, which was included in “Miscellaneous income” under “Non-operating
income” in the previous fiscal year, is now recorded as separate item in the current fiscal year because “Contributions
in aid of construction” now accounts for 10% or more than total of non-operating income. To reflect this change inpresentation, the consolidated financial statements of the previous fiscal year have been reclassified.
As a result, ¥620 million recorded as “Miscellaneous income” under “Non-operating income” in the consolidated
statements of income of the previous fiscal year has been reclassified as ¥0 million of “Contributions in aid ofconstruction” and ¥619 million of “Miscellaneous income”.

- 20 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)(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)

FY2013(As of March 31, 2014)
80,79853
80,852

Buildings and structures
Land
Total

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

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

FY2013(As of March 31, 2014)
9,664
26,13035,794

Short-term loans payable
Long-term loans payable
Total

FY2014(As of March 31, 2015)
8,364
17,766
26,1302. The following items are related to non-consolidated subsidiaries and affiliated companies.
(Millions of yen)

FY2013(As of March 31, 2014)
2,882
6,660

Investment securities (shares)
Investment securities (corporate bonds)

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

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

FY2013(As of March 31, 2014)
Japan Airport Delica Inc.
548
(borrowing)
548 million yen

FY2014(As of March 31, 2015)
Japan Airport Delica Inc.
468
(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

FY2013(As of March 31, 2014)88- 21 -FY2014(As of March 31, 2015)88

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)(Notes on Consolidated Statements of Income)
1. Impairment loss
The JAT Group recognized impairment loss on the assets as follows:
FY2013 (from April 1, 2013 to March 31, 2014)
Location
Use
Type
Impairment loss
Shibuya-ku, TokyoStore (Merchandise sales) Buildings and structures, and others
26 million yen
Store
(Food
and
Buildings
andstructures,
andothers61 million yen
Sichuan Province,
beverage,andChinamerchandise sales)
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¥62 million for buildings and structures, and ¥24 million for others.
FY2014 (from April 1, 2014 to March 31, 2015)
There is nothing to report.

2. Gain on sales of fixed assets(Millions of yen)Land

FY2013(from April 1, 2013
to March 31, 2014)
90

FY2014(from April 1, 2014
to March 31, 2015)－

FY2013(from April 1, 2013
to March 31, 2014)
30
9
2
42

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

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

Buildings and structures
Machinery, equipment and vehicles
OthersTotal- 22 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)(Notes on Consolidated Statements of Comprehensive Income)1. Amount of reclassification adjustment involved in other comprehensive income
FY2013(from April 1, 2013
to March 31, 2014)
Valuation difference on available-for-sale securities
Amount arising during the fiscal year
654
Reclassification adjustment
Total
654
Foreign currency translation adjustment
Amount arising during the fiscal year
31
Reclassification adjustment
Total
31
Remeasurements of defined benefit plans
Amount arising during the fiscal year
Reclassification adjustment
Total
Share of other comprehensive income of associates
accounted for using equity method
Amount arising during the fiscal year
446
Reclassification adjustment
Total
446
Pre-adjustment of tax effect
1,132
Tax effect amount(223)
Total other comprehensive income909
2. Amount of tax effect involved in other comprehensive income- 23 -FY2014(from April 1, 2014
to March 31, 2015)
3,260
3,260
5
5
743
384
1,128

(171)
(171)
4,222
(1,382)
2,840(Millions of yen)

FY2013(from April 1, 2013
to March 31, 2014)
Valuation difference on available-for-sale securities
Pre-adjustment of tax effectTax effect amountNet-of-tax
Foreign currency translation adjustment
Pre-adjustment of tax effectTax effect amountNet-of-tax
Remeasurements of defined benefit plans
Pre-adjustment of tax effectTax effect amountNet-of-tax
Share of other comprehensive income of associates
accounted for using equity method
Pre-adjustment of tax effectTax effect amountNet-of-tax
Total other comprehensive income
Pre-adjustment of tax effectTax effect amountNet-of-tax(Millions of yen)

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

654
(223)
431

3,260
(940)
2,319

31
31

5
5

-

1,128
(442)
686

446
446

(171)
(171)

1,132
(223)
909

4,222
(1,382)2,840

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)(Notes on Consolidated Statements of Changes in Shareholders’ Equity)
FY2013 (from April 1, 2013 to March 31, 2014)
1. Type and total number of shares outstanding, and type and number of treasury stock
Number of shares at the
beginning of the fiscal
year

Increase in the numberof shares during the
fiscal year

Decrease in the numberof shares during the
fiscal year

Number of shares at the
fiscal year end

84,476,500
84,476,500

－
－

－
－

84,476,500
84,476,500

3,246,167
3,246,167

515
515

－
－

3,246,682
3,246,682

Shares outstanding
Common stock
Total
Treasury stock
Common stock(Note )Total

Note: 515 shares of increase in common treasury stock resulted from the purchase of odd lot shares.

2. Dividends(1) Amount of dividends paid
Resolution
June 27, 2013
Ordinary General
Meeting of Shareholders
November 6, 2013
Board of Directors
MeetingType ofstock

Total dividends(Millions of yen)

Dividends per
share (Yen)Record date

Effective dateCommon
stock

527

6.5

March 31,2013

June 28, 2013

Common
stock

487

6.0

September 30,
2013

December 9,
2013(2) Dividends for which the record date came during FY2013, but for which the effective date will come after said period
Dividends
Type of
Total dividends
Source ofEffective
Resolution
per share
Record datestock(Millions of yen)
dividends
date
(Yen)
June 27, 2014
Ordinary General
CommonRetained
March 31,
June 30,568
7.0
Meeting ofstock
earnings
2014
2014
Shareholders- 24 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)

FY2014 (from April 1, 2014 to March 31, 2015)
1. Type and total number of shares outstanding, and type and number of treasury stock
Number of shares at the
beginning of the fiscal
year

Increase in the numberof shares during the
fiscal year

Decrease in the numberof shares during the
fiscal year

Number of shares at the
fiscal year end

84,476,500
84,476,500

－
－

－
－

84,476,500
84,476,500

3,246,682
3,246,682

500
500

－
－

3,247,182
3,247,182

Shares outstanding
Common stock
Total
Treasury stock
Common stock(Note )Total

Note: 500 shares of increase in common treasury stock resulted from the purchase of odd lot shares.

2. Dividends(1) Amount of dividends paid
Resolution
June 27, 2014
Ordinary General
Meeting of Shareholders
November 5, 2014
Board of Directors
MeetingType ofstock

Total dividends(Millions of yen)

Dividends per
share (Yen)Record date

Effective dateCommon
stock

568

7.0

March 31,2014

June 30, 2014

Common
stock

731

9.0

September 30,
2014

December 8,
2014(2) Dividends for which the record date came during FY2014, but for which the effective date will come after said period
The following resolution is planned to be made.
Dividends
Type of
Total dividends
Source ofEffective
Resolution
per share
Record datestock(Millions of yen)
dividends
date
(Yen)
June 26, 2015
Ordinary General
CommonRetained
March 31,
June 29,974
12.0
Meeting ofstock
earnings
2015
2015
Shareholders(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)

FY2013(from April 1, 2013
to March 31, 2014)
15,175(42)
15,133

Cash and deposits
Time deposits with a maturity greater than 3 months
Cash and cash equivalents- 25 -FY2014(from April 1, 2014
to March 31, 2015)
46,974(76)
46,897

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)(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
FY2013 (from April 1, 2013 to March 31, 2014)(Millions of yen)

Reportable segments

Consolidated
financialstatements

Facilities
Management

Merchandise
Sales

44,11587,505

15,496

147,116-

147,116

2,112

645

2,088

4,846

(4,846)-46,2283,656
112,872

88,150
6,515
23,633

17,584147
13,450151,963
10,318
149,956(4,846)(4,124)35,402

147,116
6,194
185,358

Depreciation andamortization

10,703

1,108

486

12,297450

12,747

Increase in tangible fixed
assets and intangible fixed
assets

5,447

314

208

5,970

241

6,212

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

Food andBeverage

Adjustments- 26 -Total

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Year Ended March 31, 2015 (FY2014)

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 (loss)
Segment assets
Other items

Food andBeverage

Adjustments- 27 -

Total