Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2019 (FY2018) [J-GAAP](Consolidated)
February 6, 2019
This document has been translated from the Japanese original, for reference purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.

Company name:
Code number:
Representative:
Contact:

Japan Airport Terminal Co., Ltd.
Listed stock exchange: Tokyo, 1st Section
9706
URL: http://www.tokyo-airport-bldg.co.jp/
Nobuaki Yokota, President and COO
Kazuhito Tanaka, Managing Director
TEL 03-5757-8409
Scheduled date of filing securities report:
February 14, 2019
Scheduled date of commencing dividend payment:
Supplementary materials on financial results (yes/no)
No
Holding of quarterly earnings announcement (yes/no)
No(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the First Nine Months of FY2019 (April 1, 2018 to December 31, 2018)(1) Consolidated Business Results (Cumulative)%: Change from the same period of the previous year

Operating revenues

Operating income

Net income attributable toowners of the parent

Ordinary income

First Nine
Months ofMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

FY2018FY2017

207,353
166,683

24.4
10.0

19,411
10,521

84.5
45.0

17,714
13,31833.0
30.8

31,470
9,557

229.3
41.2

(Note) Comprehensive income: First nine months of FY2018 ¥34,423 million (204.9%)

First Nine
Months of

Net income per
share
Yen

Diluted net income
per shareYen

387.43117.67370.04112.31FY2018FY2017First nine months of FY2017 ¥11,289 million (31.9%)(2) Consolidated Financial Position
Total assets

Equity capital tototal assets

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

474,791
239,389

199,065
136,15634.0
55.7

1,989.89
1,641.82

As of December 31, 2018
As of March 31, 2018

(Reference) Equity capital: As of December 31, 2018 ¥161,636 million

As of March 31, 2018 ¥133,362 million

2. Dividends
Dividends per share
Q1-EndFY2017FY2018FY2018 (Forecast)

Q2-EndQ3-EndYear-End

Annual

Yen

Yen

Yen

Yen

Yen

-

20.00
23.00

-

24.00

44.00

21.00

44.00

(Note) Revisions to the most recently announced dividends forecast for FY2018: No

3. Forecast of Consolidated Financial Results for FY 2018 (April 1, 2018 to March 31, 2019)%: Change from the same period of the previous year

Full-year

Net income attributableto owners of the parent

Ordinary income

Net income
per share

Operating revenues

Operating income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

277,100

22.6

21,70061.6

19,40016.2

32,400175.1

398.87(Note) Revisions to the most recently announced forecast of consolidated financial results for FY2018: No

* Notes(1) Significant changes in subsidiaries during the period under review (changes in specified subsidiaries involving changes in scopeof consolidation): Yes
New: 1 company (Tokyo International Air Terminal Corp.) Excluded: None
(Note) For details, please refer to page 11 of the appendix materials “2. Quarterly Consolidated Financial Statements and Notes(3) Notes on Quarterly Consolidated Financial Statements: Significant Changes in Subsidiaries during the Period under
Review”.
(2) Adoption of special accounting methods for preparation of quarterly consolidated financial statements: Yes(Note) For details, please refer to page 11 of the appendix materials “2. Quarterly Consolidated Financial Statements and Notes(3) Notes on Quarterly Consolidated Financial Statements: Adoption of Special Accounting Methods for Preparation of
Quarterly Consolidated Financial Statements”.
(3) Changes in accounting policies, accounting estimates, and restatement of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement of revisions: None
(4) Number of shares outstanding (common stock)1) Number of shares outstanding at the period-end (including treasury stock):
As of December 31, 2018
84,476,500 shares
As of March 31, 2018
2) Number of treasury stock at the period-end:
As of December 31, 2018
3,247,943 shares
As of March 31, 2018
3) Average number of shares outstanding (quarterly consolidated cumulative period):
Third quarter of FY2018
81,228,673 shares
Third quarter of FY2017

84,476,500 shares
3,247,735 shares
81,228,828 shares* This quarterly financial report is not subject to the quarterly review by certified public accountants or auditing
firms.
* Statements regarding the proper use of financial forecast and other special remarks
Notes on the use of forward-looking statements
The forecast of the business results reported herein was prepared based on information the Company had in its possession as of thetime this report was prepared and on certain assumptions judged to be reasonable. The Company makes no guarantee that thesefigures will be achieved. Actual results may differ significantly from forecasts due to various factors. For the assumptions used infinancial forecast and precautionary statements regarding the use of the forecasts, please refer to page 4 of the appendix materials “1.
Qualitative Information on Consolidated Financial Results for the First Nine Months of FY2018 (3) Explanation of Consolidated
Financial Forecasts and Other Forward-looking Statements”.

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2019 (FY2018)

Contents of the Appendix Materials
1. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST NINE
MONTHS OF FY2018 (APRIL 1, 2018 TO DECEMBER 31, 2018) ..................................................................... - 2 (1) EXPLANATION OF OPERATING RESULTS ........................................................................................... - 2 (2) EXPLANATION OF FINANCIAL POSITION ........................................................................................... - 4 (3) EXPLANATION OF CONSOLIDATED FINANCIAL FORECASTS AND OTHER FORWARD-LOOKING
STATEMENTS .............................................................................................................................. - 4 2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ............................................ - 6 (1) QUARTERLY CONSOLIDATED BALANCE SHEETS .............................................................................. - 6 (2) QUARTERLY CONSOLIDATED STATEMENTS OF INCOME AND QUARTERLY CONSOLIDATEDSTATEMENTS OF COMPREHENSIVE INCOME ................................................................................. - 8 Quarterly Consolidated Statements of Income ........................................................................................ - 8 Quarterly Consolidated Statements of Comprehensive Income ............................................................... - 10 (3) NOTES ON QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS ................................................ - 11 (NOTES ON THE PREMISE OF A GOING CONCERN) ............................................................................... - 11 (NOTES ON A SIGNIFICANT CHANGE IN SHAREHOLDERS’ EQUITY) ..................................................... - 11 (SIGNIFICANT CHANGES IN SUBSIDIARIES DURING THE PERIOD UNDER REVIEW)............................. - 11 (ADOPTION OF SPECIAL ACCOUNTING METHODS FOR PREPARATION OF QUARTERLY CONSOLIDATEDFINANCIAL STATEMENTS) ........................................................................................................... - 11 (ADDITIONAL INFORMATION) ............................................................................................................... - 11 (SEGMENT INFORMATION, ETC.) .......................................................................................................... - 12 --1-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2019 (FY2018)

1. Qualitative Information on Consolidated Financial Results for the First Nine Months of FY2018(April 1, 2018 to December 31, 2018)(1) Explanation of Operating Results
During the first nine months of the fiscal year ending March 31, 2019, the Japanese economy has
experienced a gradual recovery. Looking ahead, continuing improvement in employment and income,coupled with various government policies, is expected to support moderate economic recovery, though it isimportant to prudently monitor various issues such as effects of rising trade tensions on the global economy,
the uncertainty in overseas economies, and volatility of capital markets. In particular, the Chinese economy isexpected to return to the recovery path going forward, while it now seems to be at a standstill. Nevertheless,the uncertainty in how the rising trade tensions will impact on the global economy poses the risk of an
economic downturn.
Looking at our business environment, the Japanese government targets 40 million annual inboundtourists for Japan in 2020. The volume of inbound tourists in 2018 (January – December) hit a record high ofover 30 million. The growth was primarily due to increase in total seat capacity fueled by new routes and anincrease in flights and continuing promotional campaigns for traveling to Japan, despite the adverse impacts
observed since September 2018 due to natural disasters that struck Japan in the summer and fall of 2018.
A review of passenger traffic during the first nine months shows that passenger volume at Haneda
Airport, both on domestic and international flights, rose year-on-year since airlines increased their nighttime
flights at Haneda’s international routes, increased seat capacity by redesigning aircraft cabin layout, andoffered various demand-based discount pricing. International flights at Narita International Airport also
increased year-on-year because of robust passenger traffic as well as additional flights in September 2018
following the disaster that hit Kansai International Airport.
Under these circumstances, the Japan Airport Terminal (“JAT”) group has embraced its long-term vision“To be a World Best Airport” that satisfies the needs of all stakeholders. To achieve this long-term vision, themedium-term business plan has been developed and implemented as our five-year growth strategy until
FY2020. This medium-term business plan was reviewed to keep up with the current corporate growthstrategy and updated to reflect recent developments, including consolidation of Tokyo International Air
Terminal Corp. (“TIAT”) by subscribing for a third-party allotment of shares in April 2018, as well as thestrengthening of airport functions to meet the increasing demand of international flights after 2020. Our mainpriority for FY2018 is to realize the intended effects and purpose of consolidation of TIAT, achieve
appropriate results, respond to changes in the business environment, and further improve the performance of
airport-style in-city duty-free shops. While pursuing these priorities, JAT group is implementing various
measures based on three strategic pillars: 1) Pursuit of the ideal of Haneda Airport, 2) Expansion of ourbusiness domain utilizing our strengths and the diversification of profits, and 3) Reconstruction of our profit
base and the building of competitive advantages.
With regard to “Pursuit of the ideal of Haneda Airport”, passenger terminal facilities are being
constructed with a view toward re-expansion of Haneda international flights. As part of this project, theboarding stations near the North Pier of Terminal 2 and the satellite facility at Terminal 2 began operating inMay 2018 and in December 2018 respectively. Other re-expansion projects are proceeding in line with theconstruction schedule that will be completed for service by March 2020. In terms of airport safety, we aretaking additional protective measures such as installing water-stopping boards to prevent flooding into theunderground facilities in light of the last year’s unprecedented natural disaster which significantly affected
the safety of airport functions. We will step up our investments to enhance airport safety and continue to
implement our business policy of establishing absolute safety. In addition, renovation project started at
Terminal 1 from October 2018 to improve passenger convenience and terminal environment. Moreover, in a
drastically changing business environment, it is important not only to utilize our experience and know-how
more extensively, but also to expand our business domain by bringing in expertise that our company does notpossess, so that we can achieve more stable growth by taking full advantage of the prominent location ofHaneda Airport. To this end, Haneda Future Research Institute Inc. was established on July 2, 2018. Its
business is now being undertaken in consideration of the perspective that art and culture will play a vital rolein supporting the Japanese economy after the 2020 Olympics. While we contribute to regional revitalization
by taking advantage of the premier location of Haneda Airport in connecting local municipalities and Haneda
Airport, we are also creating new values by promoting Japanese fine products, art, and culture. In addition,
we will propose a future design of Japan, such as new lifestyle, while educating human resources who canmeet the needs of the times and fulfilling the role as a think tank. Furthermore, Haneda Robotics Lab, whichapplies robot technology to improve functionality and customer convenience of Haneda Airport, hasexperimented robot technology and participated in exhibitions in Japan and abroad to spread suchinformation. These efforts were recognized as meaningful initiative in the field of airport operation that helps
improve passenger experiences, leading to being awarded “Best Passenger Experience Initiative” at Future
Travel Experience Asia Expo 2018 that took place in Singapore in November 2018. We will continue to-2-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2019 (FY2018)

explore ways to utilize the latest technology at Haneda Airport.
In terms of the “Expansion of our business domain utilizing our strengths and the diversification of
profits”, a duty-free shop at the arrival hall in the Haneda’s international terminal was opened in April 2018.
Renovations have been underway since July 2018 at TIAT DUTY FREE SHOP CENTRAL within departurearea, with the partial opening on January 31, 2019 of the Japanese brands of cosmetics and perfumery that are
popular among inbound travelers. Upon its grand opening scheduled at the end of March, it is expected tooffer a wider variety of goods and enhance customer convenience. On the other hand, tightened enforcementof regulation on bringing duty-free goods into China as well as the weakening of the Chinese yuan has
caused a slowdown in the pace of growing consumption by Chinese travelers at our duty-free shops. Though
the growth of merchandise sales has shown signs of slowing at duty-free shops including airport-style in-city
duty-free shop “Japan Duty Free Ginza”, we will keep various measures to enhance their revenues sincedemand for shopping by Chinese visitors to Japan is expected to grow. Furthermore, in addition to Palau
International Airport project in which we have been involved in preparing for airport operation, a consortiumof Japanese companies including JAT signed a shareholders’ agreement with Joint-Stock Company
Khabarovsk Airport for participation in a business to construct and operate a passenger terminal at
Khabarovsk International Airport. We will accelerate our efforts to proceed with the project with the otherpartner companies.
With respect to the “Reconstruction of our profit base and the building of competitive advantages”, we
opened a new commercial facility “THE HANEDA HOUSE” that consists of 14 tenants on December 19,
2018 on the 5th floor of Haneda’s Terminal 1. This project is designed to provide new types of airport
experiences by bringing together facilities specializing in offering unique experiences. In addition, two storesof “Air BIC CAMERA” that were opened at Chubu Centrair International Airport in April and June 2018
have shown strong results by offering products that meet the needs of foreign travelers. Next store is now
being prepared for opening at Naha Airport on March 18, 2019. To leverage the profit opportunity created byforeign travelers’ spending outside of the airport, a new store was opened at Divercity Tokyo Plaza on
November 2, 2018, followed after the store opening at Aqua City Odaiba.
Additionally, ¥30,000 million was financed on August 31, 2018 through Hybrid Loan (subordinateddebt), a strategic financing scheme that achieves both financial stability and improvement in return on capital.
As this Hybrid Loan is recognized by a credit rating agency to qualify for equity classification to a certain
extent, it serves essentially to strengthen financial structure without diluting its shares. In the area ofcorporate governance, we are working to strengthening governance structure by holding legal seminars on
governance that CEO and other management participate in as well as amending internal rules and guidelines
including regulations of the board of directors.
Consolidated financial results for the first nine months (April 1, 2018 - December 31, 2018) is affectedby the changes in profit structure resulting from consolidation of TIAT as a consolidated subsidiary andrecognition of extraordinary income and loss. Under these circumstances, consolidated operating revenues
for the first nine months increased 24.4% compared with the same period of the previous year to ¥207,353
million. Operating income rose to ¥19,411 million (up 84.5% year-on-year), ordinary income to ¥17,714
million (up 33.0% year-on-year) and net income (attributable to owners of the parent) to ¥31,470 million (up229.3% year-on-year).
In September 2018, Haneda Airport’s passenger terminals were awarded “5-Star Airport” quality ranking,the highest global standard, for the fifth consecutive year in the “Global Airport Rating” evaluated by the
Skytrax (UK). As a sky gateway to Tokyo metropolitan area, we ensure a high level of professionalism
shared by all airport staffs as well as customer-oriented airport facility and services. Furthermore, in pursuitof the ideal of Haneda Airport, we aim to be the airport that earns the long-term trust of customers from allover the world.
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]
Since TIAT became a consolidated subsidiary, revenue at Haneda’s international terminal was added
including rental revenue, facility user charges, parking revenue, and sales from advertisement and at lounges,
while what was recognized as revenue from outsourced operation at international terminal in previous years is
now offset.
Looking at factors other than the consolidation of TIAT, rental revenue rose from the same period of theprevious year primarily due to an increase in rental spaces to airlines and opening of “THE HANEDA
HOUSE” on the 5th floor of Terminal 1, despite a decrease in rental revenue resulting from the closure oftenants due to ongoing construction for expansion of Terminal 2.
Revenue from facility user charges rose from the same period of the previous year because a growth indomestic passenger volume fueled by strong demand for business travelers and inbound travelers using
domestic routes increased user charges revenue for domestic terminal facilities, despite flight cancellations due-3-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2019 (FY2018)

to natural disasters.
Other revenues rose from the same period of the previous year primarily because revenue at lounge atdomestic terminals increased.
As a result, operating revenues from facilities management operations increased to ¥65,271 million (up47.4% year-on-year). Operating income for the segment was ¥12,183 million (up 112.9% year-on-year).
[Merchandise Sales]
Since TIAT became a consolidated subsidiary, sales at duty-free shops at Haneda’s international terminal
was added, while what was recognized as the revenue from wholesaling in previous years is now offset.
Looking at factors other than the consolidation of TIAT, sales at domestic terminal stores rose from thesame period of the previous year as a result of an increase in domestic passenger volume and efforts to achieve
higher average purchase price.
With regard to sales at international terminal stores, we have seen a slowing trend of the growth of
consumption by Chinese travelers at our duty-free shops, affected by tightened enforcement of regulation on
bringing duty-free goods into China as well as the weakening of the Chinese yuan. Nevertheless, the sales atinternational terminal stores increased from the same period of the previous year, because international
passenger volume grew at Haneda Airport, a new duty-free shop opened at arrival floor, new shops opened at
Chubu Centrair International Airport, and efforts were made to improve the merchandise lineup and to bringmore operational efficiency, to promote sales to customers, and to extend opening hours at some shops.
Other revenues rose because the wholesaling of products to regional airports progressed well.
As a result, operating revenues from merchandise sales operations increased to ¥131,426 million (up19.8% year-on-year) and operating income rose to ¥12,658 million (up 53.7% year-on-year).
[Food and Beverage]
Since TIAT became a consolidated subsidiary, sales from food and beverage operations at Haneda’s
international terminal was added, while what was recognized as the revenue from the outsourced operations atinternational terminal in previous years is now offset.
Looking at factors other than the consolidation of TIAT, sales from food and beverage operations
decreased from the same period of the previous year because some restaurants and stores were closed due torenovations and construction for internationalization at domestic terminal.
Sales from in-flight meals rose from the same period of the previous year due to an increase in flights offoreign carriers, our clients in this business, and acquisition of new clients.
As a result, operating revenues from food and beverage operations increased to ¥17,223 million (up 2.3%
year-on-year) and operating income rose to ¥766 million (up 21.8% year-on-year).
(2) Explanation of Financial Position[Assets]
Current assets increased by ¥58,331 million from the previous fiscal year end to ¥130,317 million,
primarily due to an increase in cash and deposits by ¥48,911 million and in other current assets by ¥4,931
million, despite a decrease in accounts receivable by ¥465 million.
Fixed assets increased by ¥177,069 million from the previous fiscal year end to ¥344,473 million,
primarily due to an increase in buildings and structures by ¥119,804 million.
As a result, total assets increased by ¥235,401 million from the previous fiscal year end to ¥474,791 million.
[Liabilities]
Current liabilities increased by ¥8,976 million from the previous fiscal year end to ¥46,661 million,
primarily due to an increase in short-terms loans payable by ¥4,842 million.
Fixed liabilities increased by ¥163,516 million from the previous fiscal year end to ¥229,064 million,
primarily due to an increase in long-term loans payable by ¥131,863 million.
As a result, total liabilities increased by ¥172,492 million from the previous fiscal year end to ¥275,725
million.
[Net assets]
Total net assets increased by ¥62,908 million to ¥199,065 million primarily because non-controllinginterests increased by ¥34,635 million and retained earnings increased by ¥27,651 million.
As a result, equity ratio was 34.0% (compared to 55.7% at the previous fiscal year end).
(3) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements
During the first nine months of the fiscal year, the growth of the passenger volume at Haneda Airport oninternational flights slowed down since October 2018, while the number of passengers on domestic flights
progressed in line with its forecast. Consolidated revenues for the first nine months slightly fell short of the-4-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2019 (FY2018)

forecast because merchandise sales and facility user charges revenue came in below the forecast. Consolidated
profits, however, exceeded forecasts because the amount of capital expenditure was revised and part of the
spending was carried forward to the fourth quarter.
The forecasts of full-year consolidated results have been left unchanged at this point from thoseannounced on November 7, 2018, since we expect that, on the revenue side, merchandise sales at TIAT
DUTY FREE SHOP CENTRAL will contribute to the sales increase after its reopening and that, on the costside, additional investment to improve airport safety is planned, despite the risk that an economic downswing
overseas and uncertainty in the global situation might weaken the domestic economy.

-5-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2019 (FY2018)

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

ASSETS
Current assets
Cash and deposits
Accounts receivable
Merchandise and finished products
Raw materials and stored goods
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-6-

FY2017(As of March 31, 2018)

First Nine Months of
FY2018(As of December 31,
2018)

42,487
19,566
6,512
161
3,294
(37)
71,98591,39919,101
11,431
193
8,226
(34)
130,317

281,100

453,804(204,919)(257,819)

76,18011,827

195,984
22,899(8,821)(13,021)3,005
11,371
1,159

9,877
11,371
1,251

(537)

(657)

621
21,49632,101594
49,42256,559(26,789)(45,937)

5,311
117,987
1,889

10,622
277,873
40,151

31,953
6,665
5,789
298
2,820
47,527
167,404
239,389

16,044
4
6,241
518
3,640
26,449344,473474,791

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2019 (FY2018)(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
Bonds with stock acquisition rights
Long-term loans payable
Lease obligations
Allowance for directors’ retirement benefits
Net defined benefit liabilities
Asset retirement obligations
Other fixed liabilities
Total fixed liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-7-

FY2017(As of March 31, 2018)

First Nine Months of
FY2018(As of December 31,
2018)

9,707
7,790
3,202
1,673
250
15,061
37,685

12,186
12,632
2,834
814
178
18,01546,661

30,07028,210
504
3,304
471
2,986
65,547103,233

11,16130,051160,073
461
53
3,296
477
23,488229,064
275,725

17,48921,337
92,826(3,245)
128,408

17,48921,337
120,478(3,246)
156,058

6,276

5,386

(1,259)
54
(116)
4,954
2,793
136,156
239,389

119
52
18
5,577
37,428199,065474,791

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2019 (FY2018)(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income(Millions of yen)

Operating revenues
Rent revenue
Facility user charges revenue
Other revenues
Sales of merchandise
Sales of food and beverage
Total operating revenues
Cost of sales
Cost of sales of merchandise
Cost of sales of food and beverage
Total cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and wages
Provision for employees’ bonuses
Provision for directors’ bonuses
Expenses for retirement benefits
Rent expenses
Outsourcing and commission
Depreciation expenses
Other costs and expenses
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of fixed assets
Fee and commission expenses
Miscellaneous expenses
Total non-operating expenses
Ordinary income-8-First Nine Months of
FY2017(from April 1, 2017
to December 31, 2017)

First Nine Months of
FY2018(from April 1, 2018
to December 31, 2018)

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

13,08832,782
15,869130,333
15,279207,353

82,242
8,180
90,422
76,26092,2508,323
100,573
106,780

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

9,520
759
178
721
12,781
22,26818,09623,04187,36919,411

473
322
2,152
466
3,413

20
328
247
737
1,334

245
66
282
22
616
13,318

2,325
59
558
88
3,031
17,714

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2019 (FY2018)(Millions of yen)

Extraordinary gains
Gains on sales of fixed assets
Gain on offsetting assets and liabilities
Gain on negative goodwill
Other extraordinary gains
Total extraordinary gains
Extraordinary loss
Loss on retirement of fixed assets
Loss on valuation of other investments
Loss of step acquisition
Other extraordinary loss
Total extraordinary loss
Quarterly income before income taxes and non-controllinginterests
Income taxes – current
Quarterly income
Quarterly net income attributable to non-controllinginterests
Quarterly net income attributable to owners of the parent-9-First Nine Months of
FY2017(from April 1, 2017
to December 31, 2017)

First Nine Months of
FY2018(from April 1, 2018
to December 31, 2018)

1
1

5,626
20,126207
25,960

7
8
15

196
2,725
62
2,984

13,30340,689

3,623
9,680

7,018
33,671

122

2,201

9,557

31,470Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2019 (FY2018)

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)

Quarterly income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
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- 10 -First Nine Months of
FY2017(from April 1, 2017
to December 31, 2017)
9,680

First Nine Months of
FY2018(from April 1, 2018
to December 31, 2018)
33,671

1,222
0
185

(894)
234
(2)
139

200

1,273

1,608
11,289751
34,423

11,13332,092156

2,330

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2019 (FY2018)(3) Notes on Quarterly Consolidated Financial Statements(Notes on the Premise of a Going Concern)
Not applicable(Notes on a Significant Change in Shareholders’ Equity)
Not applicable(Significant Changes in Subsidiaries during the Period under Review)
During the first quarter, TIAT became our consolidated subsidiary since the Company completed payment
procedures with regard to subscribing for a third-party allotment of shares issued by TIAT. This acquisitionchanged TIAT’s status for our consolidated accounting from an associate accounted for using the equity method toa consolidated subsidiary, which is included in the scope of consolidation. TIAT falls under the category of
specified subsidiary.
Although not falling under the category of changes in specified subsidiary, Haneda Future Research Institute Inc.
was newly established during the second quarter and included in the scope of consolidation.
(Adoption of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements)
Calculation of tax expenses
The effective tax rate on income before taxes for the consolidated fiscal year including the third quarter after theapplication of tax effect accounting is reasonably estimated, and that estimated rate is applied to net income forthe quarterly period to calculate estimated tax expenses.
(Additional Information)
Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”“Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board ofJapan (ASBJ) Statement No. 28 issued on February 16, 2018) has been applied from the first quarter of thecurrent fiscal year. Accordingly, deferred tax assets have been presented under investments and other assets anddeferred tax liabilities under fixed liabilities.

- 11 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third Quarter of the Fiscal Year Ending March 31, 2019 (FY2018)(Segment Information, etc.)
Segment Information

I.

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

Reportable segments

Quarterly
consolidated
financialstatements Note2

Facilities
Management

Merchandise
Sales

42,741109,049

14,892

166,683-

166,683

Intersegment sales
and transfers

1,551

640

1,939

4,131

(4,131)-

Total
Segment income (loss)

44,293
5,722

109,689
8,235

16,832
629

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

166,683
10,521

Operating revenues
Sales to externalcustomers(Notes)Food andBeverage

Adjustments
Total

Note 1

1. Adjustments to the segment income include ¥4,072 million of administration expenses for the parent company’s administration
divisions and others at head office which are not allocated to each of the reportable segments.
2. Segment income is adjusted with operating income recorded in the Quarterly Consolidated Statements of Income.

2. Information on impairment loss on fixed assets and goodwill, etc., by reportable segment
Not applicable

II. First nine months of FY2018 (from April 1, 2018 to December 31, 2018)
1. Sales and income (loss) by reportable segment(Millions of yen)

Reportable segments

Quarterly
consolidated
financialstatements Note2

Facilities
Management

MerchandiseSales

61,550130,523

15,279207,353-

207,353

Intersegment sales
and transfers

3,721

902

1,943

6,567

(6,567)-

Total
Segment income (loss)

65,271
12,183

131,426
12,65817,223766

213,92125,609(6,567)(6,197)

207,353
19,411

Operating revenues
Sales to externalcustomers(Notes)Food andBeverage

Adjustments
Total

Note 1

1. Adjustments to the segment income include ¥6,209 million of administration expenses for administration divisions at parent company’shead office and some of the subsidiaries which are not allocated to each of the reportable segments.
2. Segment income is adjusted with operating income recorded in the Quarterly Consolidated Statements of Income.
3. During the first quarter, with the acquisition of TIAT’s shares, TIAT became included in the scope of consolidation.
Accordingly, amount of assets in each reportable segment increased by ¥174,977 million for “Facilities Management”, ¥6,197 million for“Merchandise Sales”, and ¥576 million for “Food and Beverage”.

2. Information on impairment loss on fixed assets and goodwill, etc., by reportable segment
Not applicable- 12 -