PRESS RELEASE
June 7, 2018

Consolidated Results for Fiscal Year Ending March 2018:

YoY growth achieved in both revenue and profit
Kansai Airports today announced its financial results for the fiscal year ending March 2018,
posting operating revenue of 206.4 billion yen, operating income of 52.9 billion yen, ordinary
income of 41.8 billion yen and net profit1 of 28.3 billion yen, due partly to strong aviation
demand continuing from the previous term.
Operating revenues were up 15%, operating income up 40% and net profit up 67% from theprevious year, delivering strong revenue and profit growth.
Kansai Airports CEO Yoshiyuki Yamaya and Co-CEO Emmanuel Menanteau released astatement: “We are delighted to report continued year-on-year growth in both revenue andprofit for fiscal 2017, serving a growing number of travelers. With operations at Kobe Airport
beginning on April 1, 2018 under a concession agreement with the City of Kobe, we aim to build
an integrated management system for the three airports in Kansai so that we can contribute tofurther development of the entire region.”
Consolidated Profit & Loss Statement
Apr. 2016-(in billion yen)
Apr. 2017-Increase
Change (％)

Mar. 2017(decrease)

Operating Revenues

180.2

206.4

26.2+15%

Operating Expenses

103.3

115.0

11.7+11%

76.9

91.4

14.5+19%39.1

38.4(0.7)-2%Operating Income

37.8

52.9

15.2

+40%

Ordinary Income

26.2

41.8

15.6

+60%

Net Profit1

16.9

28.3

11.3

+67%

EBITDA
Depreciation &Amortization

1Mar. 2018

Net Profit: Net Profit Attributable to Parent Company Shareholders

Air Travel Demand
KIX achieved a record aircraft movements for a fiscal year mainly due to an increase ininternational passenger flights to Korea, Hong Kong and Southeast Asian nations. Total aircraft
movements, combining KIX and ITAMI, stood at 327,000, again marking a record high for afiscal year.
Passenger traffic at KIX continued to rise year-on-year to an all-time high of 28.8 million
thanks to strong growth in international passengers with 21. 9 million, topping the 20 million
mark for the first time for a fiscal year. ITAMI also saw growth in passenger traffic over theprevious year partly due to aircraft upgauging. The combined number of passengers going
through KIX and ITAMI was 44.48 million.

ATMs (in thousands)Apr. 2016 toApr. 2017 toIncrease

Mar. 2017

Mar. 2018(Decrease)

Change (%)

317

327

9+3%

KIX

178

188

10+6%

ITAMI

139

138(0)

-0%

40.82

44.48

3.66

+9%

KIX

25.72

28.80

3.08+12%

ITAMI

15.10

15.68

0.58

+4%

PAX (in millions)

Consolidated Balance Sheet
As of March 31, 2018, total assets decreased by 112.6 billion yen to 1,763.9 billion yen, andtotal liabilities were 1,679.2 billion yen, a decrease of 131.2 billion, both compared with theprevious fiscal year, partly due to progress on payments for the Right to Operate Public Facilities
and its amortization.
(in billion yen)
As of March 31, 2017

As of March 31, 2018

Increase (decrease)

240.2

167.7

(72.5)

1,636.3

1,596.3(40.0)

1,876.5

1,763.9(112.6)

63.6

80.7

17.1

Non-current Liabilities

1,746.8

1,598.5(148.3)

Total Liabilities

1,810.4

1,679.2(131.2)

Shareholders' Equity

65.1

83.6

18.5

Other Comprehensive Income

0.１

0.0(0.1)

Non-controlling Interests

0.9

1.1

0.2

Total Net Assets

66.1

84.7

18.7

1,876.5

1,763.9(112.6)

Current AssetsNon-current Assets
Total Assets
Current Liabilities

Total Liabilities and Net Assets【Contact information for inquires】
Kansai Airports
Branding ＆ Communications Team, Planning & Administration
TEL: +81-72-455-2201

Consolidated Profit and Loss Statement
From April 1, 2017 to March 31, 2018
(Unit: Million yen)
Operating revenues

206,371

Operating expenses

131,043

Gross operating profit

75,328Selling, general and administrative expenses

22,383Operating income

52,944Non-operating income

1,528Interest income and dividends

789

Share of profit of entities accounted for using the equity method236Compensation income

251

Other non-operating income

251

Non-operating expenses
Interest expense

12,632
12,522

Commissions

99

Other non-operating expense

9

Ordinary income

41,840Special gain

377

Gain on sales of non-current assets

7

Subsidy income

28

Gain on transfer of business

341

Special loss
Loss on retirement of non-current assets

697
278

Loss on sales of non-current assets

0Loss on reduction of non-current assets

37

Removal cost related to replacement investment

379

Profit before income taxes

41,521

Income taxes-current

14,279

Income taxes-deferred△1,270Profit

13,00828,512

Profit attributable to non-controlling interests

232

Profit attributable to owners of the parent

28,279Figures under one million yen are rounded down to the nearest million.

Consolidated Balance Sheet
As of March 31, 2018
(Unit: Million yen)

AssetsCurrent assets

Liabilities
167,668

Current liabilities

80,703

Cash and deposits

123,020

Accounts payable - trade

3,996

Accounts receivable - trade

10,857

Accounts payable - other

22,937

Merchandise inventories

4,588

Accrued expenses

2,121

Raw materials and supplies

1,216

Guarantee deposits refundablewithin one year

13,199Current portion of long-term loans
payableCurrent portion of liabilities for theright to operate public facilities

29,042

Accounts receivable - other

11,379

Income taxes payable

13,522

Deferred tax assets

1,363

Provision for bonuses

981

Other

2,042

Provision for point cardcertificates

81

Allowance for doubtful accounts
Non-current assets
Property, plant andequipment
Buildings and structures
Machinery, equipment andvehicles
Land△01,596,261

4,893

Other
Non-current liabilities

1,598,505
4,860

24,915

Bonds payable

3,714Long-term loans payable

7,793

Liabilities for the right to operate
public facilities

604

3,127

Deferred tax liabilities

184,338
1,353,906
45

Construction in progress

8,496

Provision for special repairs

44,157

Other

4,306

Liability for retirement benefits

3,853

1,444,539

Other

7,343

1,433,850

Total liabilities

Intangible assets
Right to operate publicfacilities
Replacement investment
assetsRight to operate public
facilities in progress

1,679,208
Net assets

8,960
497

Shareholders' equity

83,581

1,230

Capital stock

25,000Investments and other assets

126,805Capital surplus

25,000Investment securities

1,614

Retained earnings

33,581

Other

Asset for retirement
benefits

235

Guarantee deposits

121,683

Deferred tax assets

3,196

Accumulated othercomprehensive
Valuation difference on
available-for-sale securities
Deferred gains or losses on
hedge

3449
△ 14

Other

83

Non-controlling interests

1,105

Allowance for doubtful
accounts△8Total net assets

84,721

Total assets

1,763,930

Total liabilities and net assets

Figures under one million yen are rounded down to the nearest million.

1,763,930

Kansai Airports was established by a consortium made up of VINCI Airports and ORIX Corporation as its coremembers. Kansai Airports took over the operations of Kansai International Airport (“KIX”) and Osaka
International Airport (“ITAMI”) from New Kansai International Airport Company (“NKIAC”) and has been
operating the two airports since April 1, 2016.
Kansai Airports Kobe, Kansai Airports’ wholly-owned subsidiary, took over the operations of Kobe Airport(“KOBE”) from Kobe City and started its business as an operating company on April 1, 2018.
Under the concept of “One Kansai Airports Group”, Kansai Airports group strives to continuously improve its
services for all airport guests through appropriate investments and efficient operations, with safety and security
being the top priority. Kansai Airports group aims to maximize the potential of the three airports, for the benefitof the communities they serve.
For more information, please visit：www.kansai-airports.co.jp/en/

Kansai Airports
Location

1-banchi, Senshu-kuko kita,
Izumisano-shi, Osaka

Shareholders

ORIX 40%,VINCI Airports 40%,
Other investors 20%1

Company
Representatives

Representative Director and CEO:Yoshiyuki YamayaRepresentative Director and Co-CEO: Emmanuel Menanteau

Business Scope

Operation and management services, etc. of Kansai International Airport and Osaka
International Airport

Kansai Airports Kobe
Location

1-ban, Kobe-kuko, Chuo-ku, Kobe-shi,
Hyogo

Shareholder

Kansai Airports 100％Company
Representatives

Representative Director and CEO: Yoshiyuki Yamaya
Representative Director and Co-CEO: Emmanuel Menanteau

Business Scope

Operation and management services, etc. of Kobe Airport

ORIX Corporation (TSE: 8591; NYSE: IX) is an opportunistic, diversified, innovation-driven global powerhousewith a proven track record of profitability. Established in 1964, ORIX at present operates a diverse portfolio ofbusinesses in the operations, financial services, and investment spaces. ORIX’s highly complementary businessactivities span industries including: energy, private equity, infrastructure, automotive, ship and aircraft, realestate and retail financial services. ORIX has also spread its business globally by establishing locations in a totalof 38 countries and regions across the world. Through its business activities, ORIX has long been committed tocorporate citizenship and environmental sustainability. For more details, please visit our website:
http://www.orix.co.jp/grp/en/

VINCI Airports, a top 5 global player in the international airport sector, manages the development andoperations of 36 airports located in France, Portugal (including the hub of Lisbon), Cambodia, Japan, Dominican
Republic, Chile and Brazil. Served by more than 200 airlines, VINCI Airports’ network handled 156.6 million
passengers in 2017.
Through its expertise as a comprehensive integrator and the professionalism of its 12,000 employees, VINCIAirports develops, finances, builds and operates airports, leveraging its investment capability, international
network and know-how to optimize the management and performance of existing airport infrastructure, facilityextensions and new construction. In 2017, its annual revenue for managed activities amounted to €3.2 bn, fora consolidated revenue of €1.4 bn.
More comprehensive information is available on www.vinci-airports.com
1

ASICS Corporation; Iwatani Corporation; Osaka Gas Co., Ltd.; Obayashi Corporation; OMRON Corporation; The Kansai Electric Power Company, Incorporated;

Kintetsu Group Holding Co., Ltd.; Keihan Holdings Co., Ltd.; Suntory Holdings Limited; JTB Corp.; Sekisui House, Ltd.; Daikin Industries, Ltd.; Daiwa House Industry
Co., Ltd.; Takenaka Corporation; Nankai Electric Railway Co., Ltd.; NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION; Panasonic Corporation; Hankyu
Hanshin Holdings, Inc.; Rengo Co., Ltd.; The Senshu Ikeda Bank, Ltd.; Kiyo Holdings, Inc.; The Bank of Kyoto, Ltd.; THE SHIGA BANK，LTD.; The Nanto Bank, Ltd.;
Nippon Life Insurance Company; Mizuho Bank, Ltd.; Sumitomo Mitsui Trust Bank, Limited; MUFG Bank, Ltd.; Resona Bank, Limited; and the Private Finance Initiative
Promotion Corporation of Japan.

Consolidated Results for
Fiscal Year Ended March 2018
June 7, 2018

AgendaHighlights
Revenue Drivers
Investment Plan
Overview of Consolidated Results

1Highlights
2

Revenue and Profit Growth for the Second Consecutive Year(in ¥ billion)

FY 2016

1. Strong inbound demand→ Notable increase in passenger traffic,
particularly international passengers atKIX

2. Positive impacts of our measures→ The direct management revenue (e.g.
duty-free and retail shops) drove total
revenues, outpacing the growth ofpassenger traffic.

FY 2017

Increase(decrease)

Change％OperatingRevenues

180.2

206.4

26.2+15%

EBITDA

76.9

91.4

14.5+19%

Operating
Income

37.8

52.9

15.2

+40%

Ordinary
Income26.2

41.8

15.6+60%

Net Profit1

16.9

28.3

11.3

+67%

1“Net Profit” represents “Net Profit Attributable to Parent Company Shareholders.”

3

Revenue Drivers
4

[Aero] Growth Factor 1: Record-breaking ATMs & Passenger Traffic

Increase(Decrease)

Change％FY 2016

FY 2017

ATMs(in thousands)

317

327

9+3%

KIX

178

188

10+6%

 Foreign passengers on international
flights: Record-breaking 15.01
millionITAMI139

138

(0)

-0%

Passenger(in millions)

40.82

44.48

3.66+9%KIX

25.72

28.80

3.08+12% ITAMI Passenger traffic: 4% YoYgrowthInternational

19.15

21.90

2.75+14%Japanese

6.51

6.70

0.19+3%Foreigners

12.43

15.01

2.58

+21%

15.10

15.68

0.58+4%

 International traffic: Surpassed the20 million mark for the first time

ITAMI5

[Aero] Growth Factor 2: Strong Growth in Traffic from East
Asian Countries
 South Korean and Chinese markets remain key drivers.
 YoY international traffic growth: +27% South Korean, +16% Chinese
FY 2017 International Passengers byFY 2017 International Traffic Growth by Geographical Segment (YoY comparison)

Geographical Segment

3%

5%1% 1%1%

30%
28%

13%

27%

23%
16%

20%

19%

17%

12%

12%

10%
12%
15%

21%

0%-3%-10%-6%-20%

South Korea
South East Asia
Hong Kong/Macau
North America (incl. Hawaii)
Guam/Saipan

China
TaiwanEuropeOceania
Other-25%-30%
South Korea

China

South EastAsia

TaiwanHong Kong /MacauEurope

NorthAmerica(incl.
Hawaii)

Oceania

Guam /
SaipanOther

Source: Kansai Airports

6

[Aero] Growth Factor 3: FY2017 New Routes and Airlines

HakodateVladivostok※（※Seasonal operation）※Frankfurt
Baku※

Seoul
Niigata※

ClarkDa Nang※

New routes

Amamioshima

Operating routes

Sydney※※New Airline in FY2017
Passenger flight：S7 Airlines, Jetstar Pacific, Air Seoul, Qantas Airways
freighter：Silk Way West Airlines, Lufthansa Cargo

7

[Aero] Growth Factor 4: Strong International Cargo Robust growth in international cargo volume: 832,000 tons, up 13% YoYInternational Cargo Volume & Trade Value GrowthCargo（in thousand tons)

1,000
900

9,075

Trade9,715（in ¥ billion）

10,000

8,796

800

8,000

700
600

500
400
300

6,000677735

832
4,000

20010002,0002015

2016

2017

* Complied by Kansai Airports based on Customers Office’s data

8

Aero and Non-aero Revenue Increases with Non-Aero Share Growing Non-aero revenue share: 58%, up 3% increase YoY
 Aero revenue: ¥ 7 billion increase primarily driven by the passenger service facility charge
 Non-Aero: ¥ 19.2 billion increase mainly reflecting revenue growth within direct
management (e.g. duty-free and retail shop)
FY 2017
FY 2016¥99.8 bn ¥80.3 bn
55%¥119 bn¥87.3 bn

＋19.2 bn+7.0 bn

58%

45%

Total ¥180.2 bnAero航空系
非航空系
Non-Aero

42%

Total ¥206.4 bn

9[Non-aero] Growth factor: Revenues Outpacing Traffic Growth Posted a record ¥119 bn, up 19% YoY (outstripped traffic growth of 9%)
 Duty-free sales rose 49% YoY, driving a strong Non-aero revenue growth Chinese accounted for 63% of duty-free sales with high average transaction and high penetration
rate
Non-aero Revenue Growth (%)

119(in ¥ billion)

FY2017 Duty-Free Sales by Nationality
Others
13%

120

99.8

10080

F&B

Other+1%- 4%+12%60
40Retail20Duty-freeshops

+49%

2016

2017

0Korean
8%
Japanese
16%

Chinese63%

10

Investment Plan
11

Investment Plan
 Proactively invest approximately ¥100 bn in 3 airports(KIX, ITAMI, KOBE) over the next 5 years

Key projects
 Safety and security- Enhanced baggage screening
equipment at KIX- Improved Earthquake-resistance of ceilings
at 3 airports- Measures against settlement of ground(regular maintenance) Convenience and comfort- Upgrade of all PPBs at KIX & ITAMI- Fast Travel initiatives- ITAMI terminal renovation
12

Examples of Fast Travel Initiatives＊Indicative image

PFM1 (KIX)

Automatic Self-service Kiosks (KIX)

Self-service Baggage Drop (KIX)* To be installed

Smart Lane (KIX / ITAMI)

Full Flat PBB (ITAMI)
1Passenger Flow Management System

13

Overview of Consolidated Results
14

Business Performance
FY 2016

FY 2017(in ¥ billion)
Change％Increase(Decrease)

180.2

206.4

26.2

+15%

Aero

80.3

87.3

7.0

+9%

Non-Aero

99.8

119.0

19.2

+19%

103.3

115.0

11.7

+11%

EBITDA

76.9

91.4

14.5+19%

Depreciation & Amortization

39.1

38.4(0.7)-2%Operating Income37.8

52.9

15.2+40%

Ordinary Income

26.2

41.8

15.6

+60%

Net Profit1

16.9

28.3

11.3

+67%

Operating Revenues

Operating Expenses(excl. D&A)

1 “Net Profit” represents “Net Profit Attributable to Parent Company Shareholders."

15

Balance Sheet
As of Mar. 31, 2018

240.2

167.7

(72.5)

Non-current Assets

1,636.3

1,596.3(40.0)TOTAL ASSETS

1,876.5

1,763.9(112.6)

63.6

80.7

17.1

Non-current Liabilities

1,746.8

1,598.5(148.3)TOTAL LIABILITIES

1,810.4

1,679.2(131.2)

Shareholders’ Equity

65.1

83.618.5

Other Comprehensive Income

0.1

0.0(0.1)

Non-controlling Interests

0.9

1.1

0.2

66.1

84.7

18.7

1,876.5

1,763.9(112.6)

Current Liabilities
Debts concerning
Right to Operate
Public Facilities

Increase(Decrease)

As of Mar. 31, 2017

Current Assets

Right to Operate
Public Facilities(in ¥ billion)

TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

16

Ordinary Income Analysis
Breakdown of YoY increase in ordinary income(in ¥ billion)

45.0

41.8

40.0

8.7

△1.2

0.7

0.5

35.0

7.0

30.0

26.2
25.0
20.0
15.0
10.0Apr. 2016-Mar. 2017
Ordinary Income

1Aero

2

Non-Aero

Other Operating Depreciation &Expenses

Amortization

Non-operating

Revenue andExpenses

Apr. 2017-

1: Increase in Aero revenue
2: Increase in Non-Aero revenue
Ordinary Income
after subtracting the increase in costof sales)
Mar. 201817

EBITDA Analysis
Breakdown of YoY increase in EBITDA(in ¥ billion)
110.0

100.0

19.2

△10.5

91.4
90.0

80.0

76.9

7.0

Apr.2016-

Aero

Non-AeroMar.2017

revenuerevenue

8.7△1.2

Cost of Sales

Other cost

70.0

60.0

50.0

EBITDA

Apr.2017
Mar.2018
EBITDA

18