Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020) [J-GAAP](Consolidated)
November 5, 2020
This document has been translated from the Japanese original, for reference purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.

Japan Airport Terminal Co., Ltd. (“the Company”)
Listed stock exchange: Tokyo, 1st Section
9706
URL: https://www.tokyo-airport-bldg.co.jp/company/en/
Nobuaki Yokota, President and COO
Kazuhito Tanaka, Managing Director
TEL 03-5757-8409
Scheduled date of filing securities report:
November 12, 2020
Scheduled date of commencing dividend payment:－
Supplementary materials on financial results (yes/no)
Yes
Holding of quarterly earnings announcement (yes/no)
Yes (for institutional investors and financial analysts)
Company name:
Code number:
Representative:
Contact:(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the First Six Months of FY2020 (April 1, 2020 to September 30, 2020)(1) Consolidated Business Results (Cumulative)
Operating revenues
First Six Monthsof%: Change from the same period of the previous year

Operating income/(loss)

Net income/(loss)
attributable to owners of
the parent

Ordinary income/(loss)

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

22,293
135,270

-83.5
-1.6

(32,266)
11,156-13.9(30,506)
10,728-8.8(22,879)
5,945

-78.9

FY2020FY2019(Note) Comprehensive income: First six months of FY2020 ¥-39,482 million (-%) First six months of FY2019 ¥7,434 million (-76.5%)

First Six
Months of

Net income/(loss)
per share
Yen

Diluted net income
per share
Yen(281.67)
73.20

69.82

FY2020FY2019(2) Consolidated Financial Position
Total assets

Net assets per share

Millions of yen

Millions of yen%

Yen

481,061
521,363

161,574
201,899

28.3
31.2

1,676.62
2,001.83

As of September 30, 2020
As of March 31, 2020
(Reference) Equity capital:

Equity capital tototal assets

Net assets

As of September 30, 2020 ¥136,188 million

As of March 31, 2020 ¥162,605 million

2. Dividends
Dividends per share
Q1-EndFY2019FY2020
FY2020 (Forecast)

Q2-EndQ3-EndYear-End

Annual

Yen

Yen

Yen

Yen

Yen

-

22.00
0.00

-

10.00

32.00

-

-

-

(Note) 1. Revisions to the most recently announced dividends forecast for FY2020: None
2. We have decided to postpone the announcement of the outlook for dividend payment for the fiscal year ending March 31, 2021

3. Forecast of Consolidated Financial Results for FY 2020 (April 1, 2020 to March 31, 2021)%: Change from the same period of the previous year

Full-year

Net income/(loss)
attributable to ownersof the parent

Ordinary
income/(loss)

Net income/ (loss) per
share

Operating revenues

Operatingincome/(loss)

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

61,000-75.6(58,000)-(55,500)-(35,000)-(430.89)(Note) Revisions to the most recently announced forecast of consolidated financial results for FY2020: Yes

* Notes(1) Significant changes in subsidiaries during the period under review (changes in specified subsidiaries involving changes in scope of
consolidation): No
New: None
Excluded: None
(2) Adoption of special accounting methods for preparation of quarterly consolidated financial statements: Yes(Note) For details, please refer to page 13 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 September 30, 2020
84,476,500 shares
As of March 31, 2020
2) Number of treasury stock at the period-end:
As of September 30, 2020
3,248,445 shares
As of March 31, 2020
3) Average number of shares outstanding (quarterly consolidated cumulative period):
Second quarter of FY2020
81,228,117 shares
Second quarter of FY2019

84,476,500 shares
3,248,324 shares
81,228,476 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.
Supplementary materials on quarterly financial results and details of presentation at earnings announcement
Earnings announcement is planned to be held on November 13, 2020 for financial analysts. Materials on financial results used in thepresentation will be promptly posted on the Company’s website following the presentation on the same day.

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020)

Contents of the Appendix Materials
1. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST SIXMONTHS OF FY2020 (APRIL 1, 2020 TO SEPTEMBER 30, 2020) .............................................................................. - 2 (1) EXPLANATION OF OPERATING RESULTS ................................................................................................... - 2 (2) EXPLANATION OF FINANCIAL POSITION ................................................................................................... - 7 (3) EXPLANATION OF CONSOLIDATED FINANCIAL FORECASTS AND OTHER FORWARD-LOOKING STATEMENTS- 7
2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ...................................................... - 8 (1) QUARTERLY CONSOLIDATED BALANCE SHEETS ....................................................................................... - 8 (2) QUARTERLY CONSOLIDATED STATEMENTS OF INCOME AND QUARTERLY CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME .................................................................................................................. - 10 Quarterly Consolidated Statements of Income ............................................................................................. - 10 Quarterly Consolidated Statements of Comprehensive Income ...................................................................... - 12 (3) NOTES ON QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS ......................................................... - 13 (NOTES ON THE PREMISE OF A GOING CONCERN) ....................................................................................... - 13 (NOTES ON A SIGNIFICANT CHANGE IN SHAREHOLDERS’ EQUITY) .............................................................. - 13 (ADOPTION OF SPECIAL ACCOUNTING METHODS FOR PREPARATION OF QUARTERLY CONSOLIDATEDFINANCIAL STATEMENTS) ................................................................................................................... - 13 (ADDITIONAL INFORMATION) ....................................................................................................................... - 13 (SEGMENT INFORMATION) ........................................................................................................................... - 14 --1-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020)

1. Qualitative Information on Consolidated Financial Results for the First Six Months of FY2020(April 1, 2020 to September 30, 2020)(1) Explanation of Operating Results
During the first six months of the fiscal year ending March 31, 2021, the Japanese economy continued to
face a difficult situation due to the impact of the new corona virus infection (COVID-19), but there have beensigns of recovery. Looking ahead, it is expected that the recovery trend will continue due to the effects ofvarious policies and improving overseas economies, while taking measures to prevent the further spread of
the infection and gradually raising the level of social and economic activities. However, it is important to
prudently monitor the trend of the infection in Japan and overseas and the impact of volatility in capital
markets.
Under these economic conditions, the airline industry has been in a particularly challenging situation, butthere are signs of gradual recovery. On July 22nd, “Go To Travel” campaign was launched to stimulate
demand for domestic travel. Travel to and from Tokyo was initially excluded from the scope of the campaign,
but since the announcement in mid-September that travel to and from Tokyo would be added to the scopefrom October, domestic travel sentiment has been on the rise. Passenger volume on domestic flights at
Haneda Airport was at a standstill in July and August resulting in a year-on-year decline of approximately
70% as the number of new COVID-19 cases in Tokyo increased again after the first quarter's year-on-year
decline of approximately 90%. However, demand continued to recover in September, albeit slowly, as someroutes were fully booked during the long stretch of holidays. For international flights, discussions between
governments are underway with countries and regions where the situation regarding COVID-19 is relatively
calm, with the aim of easing travel restrictions for travelers including long-term business travelers. Despite
international flights at Haneda being resumed, the fall in the number of passengers continued to drop by morethan 95% compared to the same period of the previous year. In addition, although the number of operating
flights is increasing gradually, international passenger volume at international hub airports that we operatesuch as Narita Airport, continued to decline year-on-year significantly.
Under these circumstances, the Japan Airport Terminal Group (“JAT Group”) is taking measures toensure the safety and security of airport users, based on the “Guidelines for Preventing the Spread of
COVID-19 in the Aviation Field” (jointly prepared by the Scheduled Airlines Association and the All Japan
Airport Terminal Association). With respect to facilities, in addition to improving the terminal's ventilation
capacity, we have installed hand sanitizer and plastic sheets to prevent droplet infection throughout theterminal building, and introduced thermographic device for measuring body temperature at the security
checkpoint. In addition, we have installed mask vending machines so that airport users can purchase masks
outside of store hours. Furthermore, for international flights, amidst the government's effort to expand the
PCR testing system upon entry to Japan, the JAT Group is providing part of Terminal 3 as a PCR testing area
and a waiting area for testing. Since October 9th, the Toho University Haneda Airport Terminal 3 Clinic has
been conducting PCR testing and issuing certificates for international travelers. We will continue to workwith the government and other relevant organizations to push forward such efforts.
With respect to our commercial efforts, for domestic flights, many stores were temporarily closed during
the declaration of a state of emergency period, but operations have now resumed with the exception of a few
stores. We will continue to take thorough measures to prevent the spread of COVID-19 and make every effort
to secure revenue opportunities including the introduction of “Go To Travel” regional coupons in October atapproximately 100 stores within Haneda Airport. On the other hand, for international flights most storesremain temporarily closed. The rent reductions and exemptions for tenants that have been in place since April
2020 are being reviewed in light of passenger trends, and appropriate measures are implemented according to
the situation.
In addition, we are implementing extensive cost-reduction measures to minimize the impact of the sharp
decline in operating revenues on profits. During the first quarter, we temporarily closed part of the terminal
and reduced management and administrative costs including utilities costs. In the second quarter, we
continued to reduce fixed costs by cutting down non-urgent costs, partially reducing executive compensationand employee bonuses, to review facility maintenance costs to the extent that they do not affect passenger
convenience, and to lower outsourcing costs. In particular, we are promoting to bring in-house tasks that
require qualified personnel, such as inspection and maintenance of firefighting and electrical equipment, byencouraging our Group employees to obtain necessary license to perform such tasks. In addition, we willcontinue our efforts to reform our cost structure by reviewing operations and efficiently allocating personnel
throughout the company.
From a financial perspective, we have raised ¥5.0 billion in long-term loans and secured a short-termborrowing facility of ¥20.0 billion by June 2020, in addition to an existing commitment line of ¥9.0 billion.
We will continue to consider other measures to secure additional funds in preparation for the prolonged effectof our revenue decline.
The JAT Group has aspired to best satisfy the needs of all stakeholders. To create business and revenue-2-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020)

generation opportunities and achieve sustainable growth, we have set our long-term vision “To be a WorldBest Airport” and developed a medium-term business plan (FY2016 – FY2020). However, the impact of
COVID-19 has significantly changed the business environment that the medium-term business plan was basedon. Furthermore, society as a whole is shifting to the “new normal,” and the JAT Group recognizes the need tofundamentally review the way it operates its airport terminals, with ideas that are not bound by theconventional framework.
Taking into account the above, for international flights at Haneda Airport, in addition to improving
passenger convenience by promoting “FAST TRAVEL” which enables stress-free and comfortable boarding
procedures and “One ID” which uses face recognition technology, we will also take measures to prevent
COVID-19 infections by expanding our non-face-to-face and contactless service facilities during the current
fiscal year. For domestic flights, we launched new services utilizing self-driving wheelchairs, remote guiding
robots, and sanitization work robots adapting to the “new normal.” We will continue to work on thecommercialization of those services. We also acquired the sales rights of “Radi-Cool,” a radiative cooling filmthat improves air conditioning efficiency, and will sell the product to other airports based on its effectivenessdemonstrated by the testing at Haneda Airport. With respect to our commercial efforts, we expanded thenumber of products available on our domestic e-commerce site, “Haneda Shopping,” and are actively handling
products that are only available at Haneda Airport. We also made announcements on social networking sites toimprove recognition and strengthened the functionality of the website. Looking ahead, we aim to secure arevenue stream that is not affected by temporary declines in passenger volume by continuing to strengthen ourmarketing and e-commerce business through leveraging Haneda Airport as the transportation hub, including
merging our online operations with our physical stores.
In addition, in the Haneda Airport site 1st zone Development Project, in which we are participating, we
opened “HANEDA INNOVATION CITY” in July, and in September began full-scale operations of the areathat were scheduled to open during 2020. This facility has been selected as an “Advanced Model Project” by
the Ministry of Land, Infrastructure, Transport and Tourism's Smart City Model Project, where we areconducting demonstration tests of autonomous buses with the aim of early implementation of advanced
technologies. The JAT Group is also operating “DEJIMA by 1→10,” a digital/experiential commercial facility
that utilizes cutting-edge technology. We will continue to prepare for the grand opening of “HANEDAINNOVATION CITY” in 2022 as a creation and information hub of new industries by merging cutting-edge
technology with Japanese culture.
As a result of the above, with respect to consolidated financial results for the first six months of the fiscal
year ending March 31, 2021, operating revenues were ¥22,293 million (down 83.5% year-on-year) due tosignificant decline in revenue from facility user charges, merchandise sales, and food and beverage sales
because of the substantial decrease in passenger volume for domestic and international flights caused by the
impact of COVID-19. As a result of the fall in revenue, operating loss was ¥32,266 million (compared tooperating income of ¥11,156 million during the same period of the previous fiscal year), coupled with increasein depreciation expense of Haneda’s international facilities that commenced operation last fiscal year despite
various cost reduction measures. Ordinary loss was ¥30,506 million (compared to ordinary income of ¥10,728
million during the same period of the previous fiscal year), and quarterly net loss attributable to owners of theparent was ¥22,879 million (compared to quarterly net income attributable to owners of the parent of ¥5,945
million during the same period of the previous fiscal year).
(Millions of yen)

Operating Results

First Six Months of FY2019(ended September 30, 2019)

Operating revenues[Facilities Management][Merchandise Sales][Food and Beverage]
Operating income / (loss)
Ordinary income / (loss)
Quarterly net income / (loss)
attributable to owners of the parent

First Six Months of FY2020(ended September 30, 2020)

Year-on-Year(%)

135,270
42,64582,234
10,38911,156
10,72822,293
16,4484,607
1,237(32,266)(30,506)

-83.5
-61.4
-94.4
-88.1
-

5,945

(22,879)-

In the Skytrax (UK) “Global Airport Rating” published in November 2019, Haneda Airport’s passenger
terminals were awarded the world’s highest standard “5-star Airport” for the sixth consecutive year.
Moreover, in May 2020, we were awarded second place globally in the “World’s Best Airports” for the second
consecutive year, which comprehensively evaluates various aspects of international airports in 2020. We werealso awarded first place in the World's Cleanest Airports (for the fifth consecutive year), World's Best Domestic
Airports (for the eighth consecutive year), and World's Best PRM / Accessible Facilities (for the second
consecutive year).
-3-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020)

Although the airline industry continues to face a very difficult situation, domestic flights are steadily
recovering with an increase in new reservations of passenger flights in October. For international flights,
international traffic is gradually resuming as travel restrictions are being eased, including the introduction of abusiness track framework that exempts passengers from being quarantined for 14 days after arriving in Japan on
the condition that travelers submit a certificate proving that they tested negative on PCR testing and an activity
plan during their stay.
In light of these efforts, the JAT Group will continue to ensure the safety of passengers using Haneda
Airport and operate the passenger terminal to appropriately respond to the recovering demand. In the long-term,
we expect a steady increase in demand for air travel, and we will continue to work towards increasing thevalue of Haneda Airport by further improving the convenience, comfort and functionality of the terminalbuildings as the sky gateway to Japan and the Tokyo metropolitan area.
The following is a breakdown of earnings / (loss) by segment. Note that the figures for operating income /(loss) are equivalent to those for segment income / (loss).

Overview by Segment[Facilities Management](Millions of yen)

Operating Results

First Six Months of FY2019(ended September 30, 2019)

Facilities Management
Rent revenue
Facility user charges revenue
Other revenues
Intersegment sales and transfers
Total of Operating Revenues
Segment income / (loss)

42,645
9,024
22,26911,351
2,653
45,2987,462First Six Months of FY2020(ended September 30, 2020)

16,4487,974
3,021
5, 452791
17,240(20,486)

Year-on-Year
(%)

-61.4
-11.6
-86.4
-52.0
-70.1
-61.9
-

Rent revenue decreased from the same period of the previous year primarily due to rent reductions andexemptions offered to tenants which has been continuing since April, 2020 despite an increase in revenue
coming from the floor expansion of office space on the north side of Terminal 2 in October 2019.
Revenue from facility user charges fell significantly below the same period of the previous year due to adrop in user charges as the passenger volume for international flights continued to fall sharply while passenger
volume for domestic flights are slowly recovering.
Other revenues fell significantly below the same period of the previous year due to the decline in parking
revenue, paid lounge sales, hotel revenue and advertising revenue as a result of the slump in passenger
volume.
As a result, operating revenues from facilities management operations decreased to ¥17,240 million(down 61.9% year-on-year). Operating loss for the segment was ¥20,486 million (compared to operating
income of ¥7,462 million during the same period of the previous fiscal year) primarily due to the drop inrevenue and the increase in depreciation expense after the opening of Haneda Airport Terminal 2 international
facilities and expansion part of Terminal 3.

-4-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020)[Merchandise Sales](Millions of yen)

Operating Results

First Six Months of FY2019(ended September 30, 2019)

Merchandise Sales
Sales at domestic terminal stores
Sales at international terminal
storesOther revenues
Intersegment sales and transfers
Total of Operating Revenues
Segment income / (loss)

First Six Months of FY2020(ended September 30, 2020)

Year-on-Year(%)

82,234
17,946

4,607
3,040

-94.4
-83.1

47,489723-98.5

16,798488
82,723
7,430

843
370
4,977
(5,764)

-95.0
-24.3
-94.0
-

Merchandise sales are gradually recovering since our directly-managed stores resumed operation step bystep and almost all stores are now operating after temporary closure during the declaration of a state of
emergency period. However, the impact of the drop in passenger volume was profound and sales at domestic
terminal stores significantly decreased from the same period of the previous year.
Sales at international terminal stores significantly decreased from the same period of the previous year
primarily due to continued temporary closures of our directly-managed stores at each airport in addition to thesubstantial decrease in international passenger volume. At Haneda Airport Terminal 3, TIAT DUTY FREE
SHOP CENTRAL is continuing to operate and temporarily closed brand boutiques are operating when there
are passenger reservations. In addition, Japan Duty Free at Narita International Airport and airport-style in-city
duty-free shop “Japan Duty Free Ginza” have resumed operation but merchandise sales continue to facedifficulty.
Other revenues significantly decreased from the same period of the previous year because of the decreasein the wholesaling business at local airports due to the drop in passenger volume.
As a result, operating revenues from merchandise sales operations dropped to ¥4,977 million (down
94.0% year-on-year) and operating loss was ¥5,764 million (compared to operating income of ¥7,430 million
during the same period of the previous fiscal year).

-5-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020)[Food and Beverage](Millions of yen)

Operating Results

First Six Months of FY2019(ended September 30, 2019)

Food and Beverage
Sales from food and beverage
storesSales from in-flight meals
Other revenues
Intersegment sales and transfers
Total of Operating Revenues
Segment income / (loss)

First Six Months of FY2020(ended September 30, 2020)

Year-on-Year(%)

10,389

1,237

-88.1

6,448

938

-85.4

3,498
442
1,293
11,683
531

167
131
548
1,786
(2,393)

-95.2
-70.2
-57.6
-84.7
-

Sales from food and beverage operations significantly fell from the same period of the previous year
primarily due to the temporary closure of food and beverage shops at domestic and international terminals
because of the slump in passenger volume caused by the impact of COVID-19.
Sales from in-flight meals significantly fell from the same period of the previous year due to a significant
decline in passenger volume because of the continued cancellation and reduction of flights to Narita andHaneda by many of the foreign carriers, our clients in this business.
As a result, operating revenues from food and beverage operations dropped to ¥1,786 million (down
84.7% year-on-year) and operating loss for the segment was ¥2,393 million (compared to operating income of¥531 million during the same period of the previous fiscal year).

-6-Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020)(2) Explanation of Financial Position[Assets]
Current assets decreased primarily due to the decrease in cash and deposits and accounts receivablebecause of the decline in operating revenues. Fixed assets decreased primarily due to the depreciation ofbuildings and structures. As a result, total assets decreased by ¥40,301 million from the previous fiscal year
end to ¥481,061 million.
[Liabilities]
Liabilities increased due to long-term loans of approximately ¥30.0 billion that the Company raised
despite the payment of the construction cost of Haneda Airport international facilities which the construction
was completed last fiscal year. As a result, total liabilities increased by ¥22 million from the previous fiscal
year end to ¥319,487 million.
[Net Assets]
Dividend distribution was made, and quarterly loss decreased retained earnings and non-controllinginterests. As a result, total net assets decreased by ¥40,324 million from the previous fiscal year end to¥161,574 million.
As a result, the equity ratio was 28.3% (compared to 31.2% at the previous fiscal year end).
(3) Explanation of Consolidated Financial Forecasts and Other Forward-looking Statements
Although we postponed the announcement of our earnings forecast for the fiscal year ending March 31,
2021 at the time of the announcement of our financial results on June 4th, 2020, based on our performance
during the first six months of fiscal year 2020, the Company forecasts operating revenues of ¥61,000 million(down 75.6% year-on-year), operating loss ¥58,000 million (compared to operating income of ¥9,892 million
during the same period of the previous fiscal year), ordinary loss of ¥55,500 million (compared to ordinary
income of ¥8,705 million during the same period of the previous fiscal year), and net loss attributable to ownersof the parent of ¥35,000 million (compared to net income attributable to owners of the parent of ¥5,012 million
during the same period of the previous fiscal year).
Forecast of Consolidated Financial Results for FY 2020 (April 1, 2020 to March 31, 2021)(Millions of yen)
Operatingincome /(loss)

Operatingrevenues

Previous Forecasts (A)Net income /(loss)
attributable toowners of theparentOrdinary
income /(loss)Net income /(loss) per
share (Yen)

-

-

-

-

-

Forecasts on Nov. 5th (B)61,000(58,000)(55,500)(35,000)(430.89)

Change (B-A)
Change (%)
Reference: FY 2019 results

249,756

9,892

8,705

5,012

61.71

-7-

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020)

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
Leasehold right
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit assets
Other investments
Total investments and other assets
Total fixed assets
TOTAL ASSETS-8-

FY2019(As of March 31, 2020)

First Six Months of
FY2020(As of September 30,
2020)

71,958
8,924
13,440146
19,797(18)
114,248

67,980
3,838
13,169
295
4,781
(18)
90,047552,854(277,692)
275,162
37,743(15,266)
22,476
12,881
3,622
(965)
2,657
6,258
67,111(50,994)
16,116
335,551555,961(289,982)
265,979
36,371(16,668)
19,702
12,883
3,468
(868)
2,600
4,197
67,727(53,414)
14,312
319,676

35,205
3,614
38,82034,283
3,653
37,93720,082
8,748
387
3,523
32,742
407,114521,363

18,675
10,762463
3,499
33,400391,014481,061

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020)(Millions of yen)

LIABILITIESCurrent liabilities
Accounts payable
Short-term loans payable
Accrued expenses
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
Deferred tax liabilities
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 or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-9-

FY2019(As of March 31, 2020)

First Six Months of
FY2020(As of September 30,
2020)

3,261
13,646
8,736
1,517
1,635
186
35,34364,327

1,078
16,143
9,448
397
1,231
9,039
37,33850,98515,020161,011
2,402
13,357
55
4,141
486
7,675
255,136
319,464

50,91415,015
181,173
2,279
17,311
63
4,100
489
10,801
282,148
319,487

17,48921,337
123,451(3,248)159,029

17,48921,33799,759(3,249)135,337

3,637

3,757

609
37
(708)
3,575
39,294
201,899
521,363(2,229)
30
(706)
850
25,386
161,574
481,061

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020)(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
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
Provision for directors’ retirement benefits
Expenses for retirement benefits
Rent expenses
Outsourcing and commission
Depreciation expenses
Other costs and expenses
Total selling, general and administrative expenses
Operating income / (loss)
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Subsidies for employment adjustment
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of fixed assets
Equity in losses of affiliates
Miscellaneous expenses
Total non-operating expenses
Ordinary income / (loss)- 10 -First Six Months of
FY2019(from April 1, 2019
to September 30, 2019)

First Six Months of
FY2020(from April 1, 2020
to September 30, 2020)

9,024
22,26911,51382,072
10,389135,270

7,974
3,021
5,527
4,531
1,238
22,293

57,6895,532
63,222
72,048

3,586
1,491
5,077
17,216

5,746
1,692
121
8
449
8,386
13,51812,827
18,13960,891
11,156

5,351
913
8
489
5,846
6,717
17,196
12,95949,482(32,266)

13
254
162
794
1,223

2,426
155
1,627
535
4,745

1,462
132
56
1,651
10,728

1,149
208
1,514
112
2,984
(30,506)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020)(Millions of yen)

Extraordinary gains
Gain on sales of fixed assets
Government subsidies
Total extraordinary gains
Extraordinary loss
Loss on retirement of fixed assets
Impairment loss
Loss on valuation of other investments
Loss on reduction entry of fixed assets
Total extraordinary loss
Quarterly income / (loss) before income taxes andnon-controlling interests
Income taxes – current
Quarterly income / (loss)
Quarterly net income / (loss) attributable to non-controllinginterests
Quarterly net income / (loss) attributable to owners of theparent- 11 -First Six Months of
FY2019(from April 1, 2019
to September 30, 2019)

First Six Months of
FY2020(from April 1, 2020
to September 30, 2020)

81
99
181

3,902
3,902

44
44

1,097
5
3,819
4,923

10,866(31,527)

3,346
7,519

2,509
(34,036)

1,573(11,157)

5,945(22,879)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020)

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)

Quarterly income / (loss)
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- 12 -First Six Months of
FY2019(from April 1, 2019
to September 30, 2019)
7,519

First Six Months of
FY2020(from April 1, 2020
to September 30, 2020)(34,036)

(332)
189
(16)
68

117
(5,566)
(7)
47

6

(35)

(84)
7,434

(5,445)(39,482)

5,768(25,604)

1,666(13,878)

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020)(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(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 second quarter after
the application of tax effect accounting is reasonably estimated, and that estimated rate is applied to net income
for the quarterly period to calculate estimated tax expenses. However, in cases where the use of such an
estimated effective tax rate would result in a significant lack of rationality, the statutory effective tax rate isapplied.
(Additional Information)
Accounting estimates with respect to the impact of the spread of COVID-19
To judge the recoverability of deferred tax assets, the Company is developing and evaluating scenarios based on
the information from external sources available at the time of preparation of the consolidated financial
statements. We have reviewed the assumptions, including the timing when the spread of COVID-19 will becontained that were included in (Additional Information) of the Securities Report for the fiscal year ended
March 31, 2020, with reference to the aviation demand forecast announced by the International Air Transport
Association (IATA) on July 28th, 2020. As a result, there is no change in our initial forecast for the recovery innumber of passengers, which affect earnings and other factors, that the recovery will take about two years fordomestic flights and four years for international flights starting from the end of March 2020, but the current
trend in passenger volume indicates a slower recovery. The accounting estimates based on such assumptions arereflected in the accounting treatment.
Changes in these assumptions may affect future earnings.

- 13 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2021 (FY2020)(Segment Information)
Segment Information
I.

First six months of FY2019 (from April 1, 2019 to September 30, 2019)
1. Sales and income (loss) by reportable segment(Millions of yen)

Reportable segments

Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income/(loss)(Notes)Adjustments

Food andBeverage

Quarterly
consolidated
financialstatements Note 2

Facilities
Management

Merchandise
Sales

42,64582,234

10,389135,270-

135,270

2,653

488

1,293

4,435

(4,435)-45,298
7,462

82,723
7,430

11,683531

139,705
15,424(4,435)(4,267)135,270
11,156

Total

Note 1

1. Adjustments to the segment income include ¥4,270 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.

2. Information on impairment loss on fixed assets and goodwill, etc., by reportable segment
Not applicable
II. First six months of FY2020 (from April 1, 2020 to September 30, 2020)
1. Sales and income (loss) by reportable segment(Millions of yen)

Reportable segments

Operating revenues
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment income/(loss)(Notes)Adjustments

Food andBeverage

Quarterly
consolidated
financialstatements Note 2

Facilities
Management

Merchandise
Sales

16,448

4,607

1,237

22,293-22,293

791

370

548

1,710

(1,710)-17,240(20,486)

4,977(5,764)

1,786(2,393)24,004(28,644)(1,710)(3,622)

22,293(32,266)

Total

Note 1

1. Adjustments to the segment income include ¥3,625 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.

2. Information on impairment loss on fixed assets and goodwill, etc., by reportable segment
In the “Merchandise Sales” segment, the Company recorded an impairment loss of ¥1,097 million on fixed
assets related to business assets.

- 14 -