PRESS RELEASE
June 10, 2020

FY2019 Consolidated Financial Results
Decline in operating revenues and operating income due to COVID-19
Kansai Airports today announced its consolidated financial results for the fiscal year ended March
31, 2020, posting operating revenues of 215.8 billion yen, operating income of 52.4 billion yen,ordinary income of 41.2 billion yen, and net profit of 33.5 billion yen.
Despite a rebound from the impact of Typhoon Jebi that hit KIX in 2018, the operating revenues
and operating income decreased by 2% and 8%, respectively, from a year earlier, amid the
COVID-19 crisis that started to escalate in February this year. Extraordinary profit and loss,
meanwhile, improved by 10.6 billion yen compared with the previous fiscal year, and net profit
increased by 13% year on year; this is because disaster-related losses were recorded in theprevious fiscal year, and substantial insurance proceeds related to typhoon damage are includedin this fiscal year’s results.
In fiscal 2018, operating revenues and operating income were offset by typhoon-related lossesof 8.2 billion yen and 6.4 billion yen, respectively. In this fiscal year, operating revenues andoperating income were negatively impacted by the COVID-19 pandemic, losing 19.2 billion yen
and 13.0 billion yen, respectively.

Consolidated Profit and Loss Statement
Item

Apr. 2018-

Apr. 2019-

Increase

ChangeMar. 2019

Mar. 2020(Decrease)(％)

Operating Revenues

220.4

215.8

(4.6)

-2%

Operating Expenses（123.3)（122.8)

0.5

-0%

97.1

93.0

(4.1)

-4%

（39.8)（40.6)(0.8)+2%

Operating Income

57.3

52.4

(4.9)

-8%

Ordinary Income

46.1

41.2

(4.9)

-11%

Net Profit1

29.6

33.5

3.9

+13%

EBITDA
Depreciation & Amortization1(in billion yen)

Net Profit: Net Profit Attributable to Company Shareholders

Aviation Demand
Although KIX was greatly affected by the coronavirus outbreak, fiscal 2019 marked a record-highaircraft movements, reflecting new flight launches and increased frequencies, especially on China
and Southeast Asia routes, coupled with launches of long-haul flights. Aircraft traffic at ITAMI
slightly decreased, while KOBE’s traffic increased following deregulation. As a result, total aircraft
movements at all three airports combined amounted to 366,000.
At KIX, passenger traffic was strong through January 2020. Due to the impact of COVID-19,
however, the number of passengers during the fiscal year fell below the level of the previous year.
ITAMI’s passenger numbers also dropped below the previous fiscal year. At KOBE, passengers
increased by 3% over the previous year thanks to deregulation, despite the coronavirus pandemic.
Total passenger traffic at the three airports was 47.82 million, falling below the previous fiscal
year.

Item
ATMs (in thousands)

Apr. 2018-

Apr. 2019-

Increase

ChangeMar. 2019

Mar. 2020(Decrease)

(%)

358

366

8

+2％

KIX

190

196

6

+3％

ITAMI

138

137

(1)

-1％

KOBE

30

33

3

+11％

48.90

47.82

(1.08)

-2％

KIX

29.41

28.77

(0.64)

-2％

ITAMI

16.30

15.77

(0.53)

-3％

KOBE

3.19

3.29

0.10

+3％

PAX (in millions)

Consolidated Balance Sheet
Both assets and liabilities as of March 31, 2020 decreased from the end of the previous fiscal
year as progress was made in the payment of liabilities for the operating rights as well as theamortization of the operating rights. As a result, total assets and liabilities were 1,732.5 billion
yen and 1,623.0 billion yen, respectively.
(in billion yen)
Item

Increase

As of Mar. 31, 2019

As of Mar. 31, 2020

176.4

169.0

(7.4)

1,580.9

1,563.5(17.4)

1,757.3

1,732.5（24.7）

81.5

79.9

(1.6)

Non-current Liabilities

1,581.8

1,543.1(38.8)

Total Liabilities

1,663.3

1,623.0（40.3）

Shareholders' Equity

93.2

108.7

15.5

Other Comprehensive Income

(0.5)

(0.6)

(0.1)

Non-controlling Interests

1.3

1.5

0.2

Total Net Assets

94.0

109.6

15.6

1,757.3

1,732.5（24.7）

Current Assets
Non-current Assets
Total Assets
Current Liabilities

Total Liabilities and Net Assets(Decrease)

[Reference] Consolidated Financial Results

Contact Information
Corporate Communications
Planning & Administration
TEL: +81-72-455-2201

Consolidated Profit and Loss Statement
From April 1, 2019 to March 31, 2020

(Unit: Million yen)
Operating revenues

215,775

Operating expenses

139,312Gross operating profit

76,462

Selling, general and administrative expenses

24,062

Operating income

52,400Non-operating income

1,037Interest income and dividends

670

Share of profit of entities accounted for using the equity
method125

Other non-operating income

241

Non-operating expenses
Interest expense

12,206
12,049Commissions

100

Other non-operating expense

57

Ordinary income

41,230Special gain

12,502Gain on sales of non-current assets
Subsidies received
Insurance claims for disaster

0
505
11,996

Special loss
Loss on retirement of non-current assets
Loss on sales of non-current assets

5,052
205
0

Non-current assets advanced depreciation deduction

623

Removal cost related to replacement investment

696

Loss on disaster

1,814

Provision of allowance for loss on disaster

1,030

Loss on branch closings

196

Loss on valuation of merchandise inventories

484

Profit before income taxes

48,680

Income taxes-current

15,233

Income taxes-deferred△ 309

Profit

33,755

Profit attributable to non-controlling interests

230

Profit attributable to owners of the parent

33,525Figures under one million yen are rounded down to the nearest million.

Consolidated Balance Sheet
As of March 31, 2020
(Unit: Million yen)

AssetsCurrent assets
Cash and deposits

Liabilities
169,010

Current liabilities

79,895

128,038

Accounts payable - trade632

Notes and accounts receivable-trade

6,556

Accounts payable - other

26,003Merchandise inventories

5,763

Accrued expenses

3,166

Raw materials and supplies

1,219

Guarantee deposits refundable
within one year

13,341

Accounts receivable - other

7,299

Income taxes payable

7,916

Other

7,129

Provision for bonuses

1,078

Allowance for doubtful accounts△ 337

Provision for point card certificates

Non-current assets

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

3,310
29,786

94

Provision for loss on disaster

1,078

Other

6,827

1,563,535

Non-current liabilities

Property, plant and equipment

49,789Bonds payable

Buildings and structures

3,934

Long-term loans payable

Machinery, equipment andvehicles

10,410Liabilities for the right to operate
public facilities

Tools, furniture and fixtures

7,380

Provision for special repairs

47,675

603

Provision for loss on disaster

358

27,306

Liability for retirement benefits

4,683

Other

10,488

Total liabilities

1,622,967

LandConstruction in progress
Other
Intangible assets

154

1,543,072
4,860
162,690
1,312,316

1,409,054

Right to operate public facilities

1,382,620

Replacement investment assets

25,244

Other

1,188

Shareholders' equity

108,694

Investments and other assets

104,692

Capital stock

25,000Investment securities

1,458

Capital surplus

25,000Retained earnings

58,694

Asset for retirement benefits
Guarantee deposits

218
95,019Net assets

Accumulated other comprehensive

7,810

Valuation difference on available-forsale securities

Other

193

Deferred gains or losses on hedge

Allowance for doubtful accounts△8

Deferred tax assets

Non-controlling interests
Total net assets

Total assets

1,732,546

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

Total liabilities and net assets

△ 630
27
△ 657
1,514
109,578
1,732,546

Kansai Airports was established by a consortium made up of VINCI Airports and ORIX Corporation as its core
members. 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：http://www.kansai-airports.co.jp/en/

Kansai Airports
Location

1-banchi, Senshu-kuko kita, Izumisanoshi, Osaka

Shareholders

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

Company
Representatives

Representative Director and CEO: Yoshiyuki Yamaya
Representative Director and Co-CEO: Benoit Rulleau

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

Company
Representatives

Representative Director and CEO: Yoshiyuki Yamaya
Representative Director and Co-CEO: Benoit Rulleau

Business Scope

Operation and management services, etc. of Kobe Airport

Kansai Airports 100％

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 of
businesses 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 37 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, as the leading private airport operator in the world, manages the development and operation of
45 airports located in Brazil, Cambodia, Chile, Costa Rica, the Dominican Republic, France, Japan, Portugal,
Serbia, Sweden, the United Kingdom and the United States. Served by more than 250 airlines, VINCI Airports'
network handled 255 million passengers in 2019. Through its expertise as a comprehensive integrator, VINCIAirports develops, finances, builds and operates airports, leveraging its investment capability, international
network and know-how to optimise the management and performance of airports and to carry out airport
expansions and upgrades. In 2019, its annual revenue for managed activities amounted to €4.9 billion, for a
consolidated revenue of €2.6 billion.
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; KintetsuGroup 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 ofJapan.

FY2019 Consolidated
Financial Results
2020.06.10

AgendaOverview of Consolidated
Financial Results
Revenue Drivers
Q&A

1

Overview of Consolidated Financial Results2

Operating revenues and operating income decline due tothe impact of COVID-19
1. Favorable performance until
January 2020 thanks to newflights and increased frequencies
on China, Southeast Asia, andlong-haul routes, as well as
deregulation of Kobe Airport
2. Operating revenues and operating
income decreased from theprevious year due to the impact of
the novel coronavirus outbreak
3. Impact of Typhoon Jebi (2018)-> Net profit increased due to anincrease in insurance proceeds anda decrease in disaster-related losses(in billion yen)
Apr. 2018Mar. 2019

Apr. 2019Mar. 2020

Change％Operating
Revenues

220.4

215.8

(4.6)

-2%

EBITDA

97.1

93.0

(4.1)

-4%

Operating
Income

57.3

52.4

(4.9)

-8%

Ordinary
Income

46.1

41.2

(4.9)

-11%

Net Profit*

29.6

33.5

3.9

+13%

* “Net Profit” represents “Net Profit Attributable to Parent Company Shareholders”

3Operating Results(in billion yen)
Apr. 2018 Mar. 2019

Apr. 2019 –Mar. 2020

Increase(Decrease)

Change％COVID-19
impactTyphoonimpactExcl.
COVID-19 &typhoon2

220.4

215.8

(4.6)

-2%

(19.2)

8.2

6.4

Aero

90.2

89.3

(0.9)

-1%

(7.3)

3.6

2.7

Non-Aero

130.1

126.4

(3.7)

-3%

(12.0)

4.6

3.7

Operating Expenses (excl.D&A)(123.3)(122.8)

0.5

-0%

6.2

(1.9)

(3.8)

EBITDA

97.1

93.0

(4.1)

-4%

(13.0)

6.4

2.5

Depreciation & Amortization(39.8)(40.6)(0.8)+2%

Operating Income

57.3

52.4

(4.9)

-8%

Non-operating Profit and Loss

(11.2)(11.2)

0.0-0%

Ordinary Income

46.1

41.2

(4.9)

-11%

Extraordinary Profit and Loss

(3.2)

7.4

10.6

-336%

Income Taxes, Profit Attributable toNon-controlling Interests(13.3)(15.2)

(1.8)

+14%

29.6

33.5

3.9

+13%

Operating Revenues

Net Profit

1

(0.8)
(13.0)

6.4

1.7
0.0

(13.0)

6.4

1.7

11.0

(0.4)

4.0

(5.3)

(0.5)

(9.0)

12.0

0.9

1 “Net Profit” represents “Net Profit Attributable to Parent Company Shareholders”
2 “Impact of factors other than “COVID-19” and “recovery from Typhoon damage” (e.g. increased flight frequencies until January)

4

EBITDA analysis(in billion yen)5Balance sheet(in billion yen)

Right to Operate
Public Facilities, etc.

As of Mar. 31, 2020

176.4

169.0

(7.4)

1,580.9

1,563.5(17.4)

1,757.3

1,732.5(24.7)

81.5

79.9

(1.6)

1,581.8

1,543.1(38.8)

1,663.3

1,623.0(40.3)

Shareholders' Equity

93.2

108.7

15.5

Other Comprehensive Income

(0.5)

(0.6)

(0.1)

Non-controlling Interests

1.3

1.5

0.2

94.0

109.6

15.6

1,757.3

1,732.5(24.7)

Current Assets
Non-current Assets
TOTAL ASSETS
Current Liabilities

Debts concerning
Right to Operate
Public Facilities, etc.

Increase(Decrease)

As of Mar. 31, 2019Non-current Liabilities
TOTAL LIABILITIESTOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

6

Revenue Drivers
7

[Aero] Record-high aircraft movements at 3 airports combined
 Total and domestic aircraft movements at the
3 airports combined marked a record-high

FY2018FY2019Change％ATMs(in thousands)

358

366

8

+2%

KIX

190

196

6

+3%

ITAMI

138

137

(1)

-1%

KOBE

30

33

3

+11%

Passengers(in millions)

48.90

47.82

(1.08)-2%KIX

 ITAMI passengers: Down by 3% YoY affected by
COVID-19

29.41

28.77

(0.64)-2%

Int’l flightpassengers

22.90

22.06

(0.84)-4%

 KOBE ATMs and passengers: Record-high for a
fiscal year thanks to the deregulation of aircraft
movements introduced in August 2019 andassociated launches of new flights and increased
frequencies

Japanese

7.18

7.17

(0.01)

-0%

15.52

14.69

(0.83)

-5%

ITAMI

16.30

15.77

(0.53)

-3%

KOBE

3.19

3.29

0.1

+3%

 Although the total passenger traffic at the 3
airports combined showed a stable growth until
January 2020, due to the impact of the global
COVID-19 pandemic, the full-year result was
down by 2% YoY
 KIX ATMs: Record-high for both total andinternational aircraft movements

Non-Japanese8

FY2019 passengers at 3 airports
FY2019 KAP Passengers

FY2019 YOY

6,000

150%

thousand

111%

5,000

4,819
4,295

4,000

254

4,431
276

4,280
263

4,465 330
4,155 4,192

281

302

1,306 1,397 1,310 1,388

570

599

552

299

284

281

1,608
1,462 1,389 1,291 3,035

594

565

565

554

553

9%

1,190

10%
5% 7% 8% 7% 4%
4%
1% 4% 2%

0%
1,443

1,000

2,165 2,159 2,156 2,183 2,224

507
1,876 1,956 1,980 1,998 2,053

0
Apr MayJunJul

KIX Int

Aug

Sep

KIX Dom

Oct
ITAMI

Nov

Dec

KOBE

Jan

11% 14% 13%

266
656

2,000

46%

50%
1,383 1,377

3,000
613

294

100%

4,306 4,225 4,178

5%

2%

3%

4%

0%

1%
0%

2% 1%
3%
1%
-1% 2%

-23%

17%

3%

-49%

163

-50%

-46%

663

-69%

1,072 377
240

264

Feb

Apr

Mar

-88%
-89%

-94%

-100%
Apr May Jun

Jul
Int

-99.7%Aug Sep Oct Nov Dec Jan Feb Mar Apr
Dom

Total

9

[Aero] KIX international passenger traffic achieves strong performanceon China and Southeast Asia routes

With increased flight frequencies on China and Southeast Asia routes, passenger traffic to/from China and Southeast
Asia rose by 21% and by 14% YoY, respectively
Passenger numbers for South Korea and Hong Kong, which were affected by diplomatic issues and protests, showed anegative trend

The cumulative passenger traffic from April 2019 to January 2020, before the impact of COVID-19, remained positive
YoY for regions other than South Korea and Hong Kong
FY2019 Int’l passengers by region

5%

4%

(48%)

3% 1%

30%
29%

11%

FY2019 Int’l passengers YoY change by region
(27%)

21%

(18%)

14%

20%

10%

10%

(9%)

(7%)

-4%

-3%

Taiwan

North America(incl. Hawaii)

(26%)

13%

(25%)

16%

0%

11%
18%

18%

-10%
-20%

-14%

-30%

(-2%)
-33%

-40%
China
Southeast Asia
TaiwanEuropeOthersSouth Korea
Hong Kong, Macau
North America (incl. Hawaii)
Oceania, Guam

-50%(-23%)
China

South Korea Southeast Asia

Hong Kong,
Macau

EuropeOceania, Guam

Others*Figures in brackets show YoY change for the period from April to January

Source: Kansai Airports10【Aero】 New Airlines/Routes for Summer/Winter 2019 (Passenger & Cargo)
KIX International New Airlines/Routes
British Airways (New)London (Heathrow）(Apr 1-)
Swiss International Air Lines (New)
Zurich（Mar 2, 2020-）

Domestic New Airlines/Routes

China Eastern Airlines
Taiyuan (Mar 31, 2019-)
Spring Airlines
Hefei (Apr 17-)
China Eastern Airlines
Nanchang (Oct 27-)

Fuji Dream Airlines (New)

Shenzhen Airlines
Nanchang (Oct 27-)

KOBE=Izumo (Oct 27-)

Juneyao Airlines
Wenzhou (Oct 27-)
Juneyao Airlines
Changzhou (Oct 27-)

Qatar Airways Cargo (New Cargo)
Doha-KIX-Hong Kong (Jan 15-)

Hainan Airlines
Lianyungang=Lanzhou(Nov 25-)

Philippines AirAsia (New)Manila (Jul 1-)

KOBE=Kochi (Dec 20-)
Delta Air Lines
Seattle (Apr 2-)

West Air (New)Zhengzhou, Chongqing(Nov 26-)
Loong Air (New)
Hangzhou (Dec 2-)

Thai Lion Air (New)
Bangkok (Don Mueang) (Mar 28, 2019-)

KOBE=Matsumoto (Oct 27-)

Jetstar Japan
KIX = Shimojishima (Jul 3-)

Sichuan Airlines (New Cargo)
Nantong-KIX-Chengdu(Dec 9-)9 Air (New)Guangzhou (Dec 22-)11

[International cargo] Volume & growth trend (FY2019)
Not only KIX but also other airports in Japan were affected by
the decrease in cargo volume caused by US-China trade friction

KIX Cargo Volume & Value(in thousand tons)
1,000(in billion yen)

9,717
9,096

(-0.4% YoY)

10,000

9,058

900

9,000

800

8,000

700

7,000

832

797

600

742

(-6.9%)On the other hand, the trade value kept
the level of the previous year
Cargo flight network was expanded
thanks to new operators such as Qatar
Airways and Sichuan Airlines

Int’l Air Cargo
Volume Share (FY2019)

KIX Cargo
Volume & Growth
+117%

30%

Other

20%

6,000

airports

10%

9.4%

0%

0%

500

5,000

FY 2017

FY 2018

TTL Volume(Load ・Unload)

FY 2019
TTL Value(Export・Import)

HND

20.1%

15.2%

-10%
-20%

KIX

-10%
-13%

-8%
-11%
-13%
-14%

-11%

-9%

55.3%

-30%
4

5

6

NRT

-18%

-19%

7

8

9 10 11 12 1

2

3

(month)Source: Kansai Airports Traffic Report
Customs Publications
MLIT

12

[Non-Aero] Revenue drops YoY due to COVID-19
 The revenue through January 2020 hit a record high (up 8% YoY) owing to the solid growth in spending by
Chinese customers
 As the virus spreads across the globe, passenger traffic has significantly fallen since February, resulting in adecrease in annual revenue by 3.7 billion yen (down 3% YoY)
 Chinese customers accounted for 74% of duty-free sales at directly-managed shops on an annual basis,
reflecting high average transaction and penetration rate before the pandemic(in billion yen)140

Non-Aero Revenue
130.1

FY2019 Duty-Free Sales* (by Nationality)
Korean126.4

Taiwanese 3%

120
100
80
60
40

OthersOthers

4%

6%

+4%

Japanese
Retail
F&B

12%

-13%

Chinese74%
Duty-free

-4%

2018

2019

20
0

(fiscal year)* Directly-managed duty-free shops only

13

[Non-Aero] New shops and services meet high needs of customers
 At KIX, new shops including brand boutiques, restaurants, and currency
exchange stores opened in pre- and post-security areas
 At ITAMI, airport access was improved with a renovated parking structure
and a new car rental station
KIX

ITAMI

Apr 27, 2019
OPEN

Parking structureApr 24, 2019

Apr 25, 2019

May 16, 2019

OPEN

OPEN

OPEN

È PRONTO

PLEATS PLEASE ISSEY MIYAKEBAO BAO ISSEY MIYAKE

CLÉ DE PEAU BEAUTÉJuly 8, 2019
OPEN

Car rental station

From June 1, 2019

Sept 26, 2019

Dec 1, 2019

Mar 11, 2020

4 shops opened in phases

OPEN

OPEN

OPEN

Currency Exchange TRAVELEX

NAKAU

TORY BURCHHUGO BOSS

14

Percentages of Aero and Non-Aero revenues remain unchanged
 Non-Aero revenue share: 59%, same level as the previous year Aero revenue: Dropped by 0.9 billion yen mainly due to the decrease in passenger trafficcaused by COVID-19
 Non-Aero revenue: Declined by 3.7 billion yen mainly in duty-free business due to COVID-19
FY2019FY2018(in billion yen)

130.1

59%

90.2

126.4
-3.7 YoY

89.3-0.9 YoY

41%

41%

航空系
非航空系

59%
Total 220.4 billion yen

Total 215.8 billion yen
15