Fiscals 2016-2018
NAA Group Mid-term Management Plan

Innovative Narita 2018
– Aiming to be the Airport of the World’s Highest Standards –April, 2016
Narita International Airport Corporation

IndexI. Operating Environment・・・・・・・・・・・・・・・・・・・・・・Page 2
II. Narita Airport’s Vision for its Future・・・・・・・・・Page 4
III. Strategic Policies and Goals・・・・・・・・・・・・・・・・・Page 5
IV. Specific Initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・Page 10
V. Capital Investment Plan・・・・・・・・・・・・・・・・・・・・・Page 19

1

I. Operating Environment
The global economy is likely to remain in a gradual upturn, despite some future uncertainty
arising from the economic deceleration in China and other emerging economies, and sluggish
resource markets. A gradual upturn continues in the Japanese economy as well, with steadily
improving labor and income conditions, and positive effects from government economic policies.
In these environments, demand for air transportation is expected to continue to grow. For Asia inparticular, the growth should be dramatic, as the region is leading the growth of the world airtransport market overtaking North America. To quickly capture shares of the growing market, themajor airports in the Asia region will carry out large-scale capacity expansions between 2017 and2019, as competition intensifies for routes between the international airports in the surrounding
markets.
Airlines are also striving to retain their positions in an increasingly competitive environment.
Full-service carriers are improving their transit conveniences and reorganizing route network as
they consolidate their alliance strategies, and bringing in new-generation aircraft. Low-cost carriers
are cultivating new markets for cost-conscious travelers, and some are pursuing a new businessmodel by strengthening on-board services and tying-up with other airlines to expand connectivity.
For both airlines and airports, the operating environment is clearly entering a challenging period.
Japan is strongly promoting to become a popular tourist destination with world-class appeal, andthe government has set new targets for foreign visitor numbers and is developing a new tourism
strategy to achieve them. Increases are anticipated in the number of foreign visitors flying to ourcountry. Meanwhile, the airlines and airports connecting Japan to the world will take on very
important roles as the eyes of the world are drawn to Japan for the 2020 Tokyo Olympic andParalympic Games.
To meet those expectations and associated challenges, one of the policies the Japanese
government has adopted for strengthening the international competitiveness of Greater Tokyo
Capital Area is to support further functional improvements of its airports (Haneda and Narita). For
Narita, the technical options under consideration in consultation with relevant parties are theextension of the existing runway, construction of an additional runway and relaxation of night-time
flight operation restrictions.
The recent situation at Narita Airport includes a record level of aircraft movements withexpanding new routes and additional flights, and although there has been a continuing slackening of
demand for overseas travel among the Japanese nation, the number of foreign visitors to Japan
using Narita as their gateway to Japan, especially from China and East and Southeast Asia has
steadily increased to a record high level, supported by the elimination or easing of Japanese visa
requirements, the expansion of consumption tax exemption, and the weakening of the yen. Foreign
visitors to Japan are expected to increase further in the mid to long-term and with this increase, we
can also anticipate growth in demand for tourism to regional cities and towns in Japan.
The NAA Group, in response to the challenging operating environment described thus far, willfurther strengthen for ample and well-balanced global air transport network to/from Narita that has
2been built up since its opening. While continuing to serve as a strategic transfer point for the airservices network of the Asia-Pacific region, and to fulfill the missions of supporting further economic
growth and regional revitalization of Japan by taking appropriate steps to serve the expected
increase of Tokyo-area air service demand and, as the international hub airport of Greater Tokyo
Capital Area and thus as the gateway to Japan, providing the most advanced technology and thefinest hospitality for athletes and visitors to the 2020 Tokyo Olympic and Paralympic Games in orderto support the safe and smooth hosting of the games.
As explained above, during the period of 2016-2018 mid-term management plan, in addition to ourcontinued commitment towards offering the world’s highest safety and service standards andpreparing for further airport functional improvements and supporting airline network expansion, we
will build necessary resilient management fundamentals to strengthening functionalities for the
Narita Airport’s future, so we would become capable of responding flexibly and promptly to meet any
challenges. We will pursue fullest management efficiency in order to steadily and expeditiously
implement our policies.

3II. Narita Airport’s Vision for its Future
The NAA Group will endeavor to make Narita Airport more competitive among the major Asian
airports undertaking large-scale expansions. Also, for the 2020 Tokyo Olympic and Paralympic
Games which will draw global attention, as the key international hub airport of Greater Tokyo
Capital Area and thus the gateway to Japan, we will commit to provide the most advanced
technology and the finest hospitality for athletes and visitors in order to support the safe and smooth
hosting of the games.
To bind these efforts to the ongoing growth and development of Narita Airport in the future andachieve its position as the leading airport of Asia, we envision the following for the three fiscal years
2016 to 2018.



We will pursue to become an airport of the world’s highest standards to drive for customer
acknowledgement to be offering the finest level in the world by making endless challenges
for safety and service quality.



We will pursue to retain and reinforce our position as the top class international hub airport
in Asia through expanding air services network by serving the needs of the airlines withenhancing airport functionalities, along with initiated further functional improvements to
support sustainable growth and development of Narita Airport.

4III. Strategic Policies and Goals
The NAA Group regards the coming three fiscal years 2016 to 2018 as a period to improve
competitiveness among other major Asian airports, laying the groundwork for further rapid progress,and making full preparations to support the safe, smooth hosting of the 2020 Tokyo Olympic andParalympic Games. Toward realizing our vision for Narita Airport’s future, we will steadily but
expeditiously work toward the targets of the following five strategic policies.
Strategic Policy 1. Bringing Safety and Operating Stability to the World’s Highest Standards
The endless pursuit for world’s highest level of safety and operating stability takes priority
over everything else, and is the mission of the NAA Group.
Key Initiatives and Targets;

Perfecting risk management and safety control systems in cooperation with relevantorganizations to ensure assurance for every airport users, and building a safety culture inwhich all airport staff regards safety as the highest priority and make unflagging effortsStrengthening of security systems, including utilization of the latest AIT. 1

Strategic Targets“Three Zeroes” for Airport Operation

Zero aircraft accidents, with sound precision airport operations 2

Zero malfunctions in facilities which can seriously affect airport operation

Zero hijacking or terrorism incidents, with solid security measures

1

Advanced imaging technology, including body scanners and other equipment.
Precision monitoring of air navigation aid (visual and radio) operations along with their security and inspection, as well as ramp control (controlof taxiing on aprons and assignment of aircraft stands), and reliable operation of the Safety Management System (SMS), which collects andanalyzes incidents, and shares that information with relevant personnel in order to initiate preventative action.
2

5Strategic Policy 2. Improving Airport Functionalities and Partnership with the Local CommunityImproving functionality is the foundation and starting point to enhance airport
competitiveness.
Key Initiatives and Targets;

Amid intensifying competition among major Asian airports, further expanding the airservices network to/from Narita Airport by enhancing the hourly aircraft movement
capacity to meet airline needs during peak periods.

Pursuing consultations with relevant stakeholders toward realization of runway
extension as well as construction of an additional runway and relaxation of night-time
flight operation restrictions.



Deepening the partnership with the local community for co-existence, mutual prosperity
and stronger environmental protection.



Reducing the environmental impact under the Eco-Airport Master Plan.

Strategic Targets

Hourly aircraft movements* during peak periods: 72 3 (by the end of fiscal 2018)*Movements of aircraft takeoffs and landings

Annual aircraft movement target : 270,000 (in fiscal 2018)

Reduce greenhouse gas (CO2) emissions: 7% below fiscal 2015 level(Per aircraft movement, by the end of fiscal 2020)

3

At the end of fiscal 2015, the maximum hourly aircraft movement during peak periods was 68.

6Strategic Policy 3. Thoroughly Enhancing Air Services Network

Expansion of the air services network is a key factor for airport competitiveness.
Key Initiatives and Targets;

We will further strengthen the extensive, balanced network extending around the world
which we have developed since Narita Airport opened, by enthusiastically promoting our
airport with marketing activities including effective promotions by way of studies ofpassenger trends and markets.



We will concentrate on opening new routes in the dramatically growing Asian market
including new routes to inland China and Southeast Asian cities currently not directly
served, while reinforcing our position as the central hub linking Asia with North America
by improving transit functions and convenience which will enable us to maintain or
reduce connection times.



We will also strive to open new routes serving destinations in Europe, Africa, and Latin
America.



We will strive to add more domestic routes in Japan, not only to serve Japan resident
travelers but also to meet the needs of the growing numbers of foreign visitors to Japan.

Meeting airline needs in order to encourage the three major airline alliances to use Narita
as their key hub airport, by adding security lanes and implementing new high-efficiency
security check system, and adding baggage handling facilities and bus gates to make
Narita Airport facilities more attractive.



Leveraging the only dedicated LCC passenger terminal in Greater Tokyo Capital Area toattract the LCC airlines offering short-haul routes in Asia and within Japan.

Expanding cargo services network to increase the value of Japan’s largest air cargo port
as a distribution hub.

Strategic Targets
Air Services Network :Overseas destinations served: 130 cities or more (by the end of fiscal 2018)
Domestic destinations served: 20 cities or more (by the end of fiscal 2018)



LCC flight share*: 30% or higher (in fiscal 2018)*LCC proportion in passenger flights

Flight Volume

Annual total passenger volume: 43 million passengers (in fiscal 2018)
International flights: 35.5 million passengers(Foreign passengers including transits: 22.6 million passengers)
Domestic flights: 7.5 million passengers

Annual air freight volume: 2.1 million tons (in fiscal 2018)7

Strategic Policy 4. Increasing Customer Satisfaction by Providing the World’s Highest ServiceStandards and Creating More Attractive Retail Spaces
It is absolutely essential that Narita Airport is seen and recognized by the customers as their
airport of choice that customers look forward to using and are glad they have used, and arehoping to use again.
Key Initiatives and Targets;Working with relevant authorities, airlines and other parties in promoting the automated“self-service” passenger travel procedures (Fast Travel 4 ) at the airport to shorten
passenger processing and waiting times as much as possible. Along with this, we wish to
introduce Airport Collaborative Decision Making (A-CDM)5 to increase overall airport
utilization efficiency and improve on-time flight operation which is the reference point oftransport service.

Providing attractive retail spaces and enhancing the pre-boarding experience sopassengers can make more enjoyable and meaningful use of the time saved by theshortening of processing and waiting times which could raise satisfaction level for theincreasing numbers of foreign visitors to Japan as well.



Using the most advanced information and communications technologies to create a smart
airport will work hand in hand with the creation of attractive retail spaces to surprise andimpress passengers.



Thoroughly reviewing all airport functions and services, with emphasis on morestress-free, barrier-free accessibility and hospitality, in preparation for supporting thesafe, smooth hosting of the 2020 Tokyo Olympic and Paralympic Games.

Strategic Targets (by the end of fiscal 2018)


On-time flight operation rate: the world’s top level(Specific targets to be determined in consultation with airlines and other parties)Percentage of passengers utilizing self-service options6: 80% or higher



Length of processing time:
Departures, time to reach duty-free shops area: within 10 minutes*Departure lobby check-in to duty-free shops area

Arrivals, time to reach arrival lobby: within 30 minutes*Disembarkation to arrival lobby *IATA targets processing time

SKYTRAX World Airport Rating7: Target to obtain five-star airport rating (top level)

4

The IATA Fast Lane Program recommends the automation of passenger procedures (self-service) and the introduction of common-use facilities.
It is designed to provide shorter waiting times for passengers, more efficient and better on-time service rates for airlines, and higher handling
capacity and less passenger terminal congestion for airports.
5
The Airport Collaborative Decision Making initiative promotes precise, timely sharing of predictive data on aircraft operation and airport utilization
among airport partners (ATC, airlines, airport operators, etc.), to increase airport operating capacities through best use of personnel, aircraft,facilities and other resources.
6
Proportion of departing passengers able to use the self-service processing facilities classed by IATA as most important in its Fast Travel
recommendations including check-in, baggage drop and flight rebooking. IATA has set a target of making these self-service processing facilities
available to 80% of passengers throughout the world by 2020.
7
Airline research firm SKYTRAX, based in the United Kingdom and founded in 1989, posts ratings of airports on its website.
(www.worldairportawards.com) SKYTRAX awards one to five stars on the basis of airport facilities, customer service, security inspections,passport control, retail shops, etc. which are recognized as the global benchmark of airport quality.

8Strategic Policy 5. Reinforcing NAA Corporate Group Management Strength and Competitiveness

Reinforcing the management strength of the NAA corporate group that administers andoperates the airport is indispensable for achieving our vision.
Key Initiatives and Targets;Respond to the diversifying customer needs especially of the increasing number of foreign
visitors to Japan and capture the airport retail sales opportunities to improve NAA
corporate group’s financial platform for the management strength and competitiveness.

Prepare for potential event risks such as a major disaster, terror incident or infectious
disease, and placing priority on securing a steady cash flow for continuous soundmanagement.

Strategic Targets (in fiscal 2018)


Revenue from airport duty-free shops, merchandise outlets and restaurants: JPY150
billionFinancial Targets (in fiscal 2018)Consolidated operating profit: JPY49 billion or higherConsolidated return on assets: 5.5% or higherConsolidated long-term debt: Low JPY450 billion



Ratio of consolidated long-term debt balance to consolidated operating cash flow: 6.2 orless

9IV. Specific Initiatives
Note regarding statement of target dates:

The target date for achievement of each measure, noted in [brackets], is the date by whichavailability or completion is intended, and from which operation or performance is intended.



Items for which no target date for achievement is listed are ongoing initiatives or are intended to
be available or completed by the end of fiscal 2018.

１． Bringing safety and operating stability to the world’s highest standards(1) Strengthening the risk management systemWe will build even closer ties with airlines, medical institutions and other relevantorganizations to more speedily make appropriate responses in the event of aircraft accident,
major disaster or pandemic outbreak. We will also strengthen the risk management system
for the NAA Group as a whole.

We will strengthen the security system by installing next-generation equipment at security
check areas and utilizing other leading-edge technologies.

To improve the crisis response capabilities of the airport as a whole, various scheduled drills
for hypothetical emergencies will be carried out.

We will heighten awareness for security level at the entire NAA Group by following thelatest procedures for thorough defense against cyberattacks and maintaining information
security systems and regulations conforming to the cyberattack countermeasure standardsof the Japanese government.

(2) Total safety and operating stabilityTo maintain total safety and stability in the operation of airport facilities, we willconsistently carry out scheduled inspections and degradation diagnoses for all equipment inour scheduled equipment replacement programs.



We will make continuous efforts to prevent large-scale shutdowns of the key facilities thatare indispensable to stable operation of the airport, by determining reference values forequipment operating ratios and failure recovery times, managing equipment underthorough plan-do-check-act practices, and reviewing the procedures for rapid recovery.



We will pursue thorough safety education by adding new training programs for all airport
employees, to enhance safety awareness and accident prevention at every workplace.

10

2. Improving airport functionalities and partnership with local community(1) Promotion of airport functional improvements(To expand hourly capacity to 72 aircraft movements)


Bearing in mind the available capacity of 300,000 aircraft movements per year, in order toaccommodate more flights during Narita’s peak hour periods, we will reconfigure thehigh-speed exit taxiways8 on Runways A and B to allow for hourly capacity to 72 aircraft
movements.

Along with the increase to 72 aircraft movements per hour, we will augment other airport
facilities.


We will install additional baggage handling facilities for departures in the South Wing
in Terminal 1.



We will provide additional departure bus gates in Terminal 1.



We will connect Terminals 1 and 2 and install additional fixed gates. [By the end of
fiscal 2019]

We will provide an aircraft holding bay9 on the north side of Runway A. [By the end of
fiscal 2019]

We will move forward with the addition of 13 new aircraft parking stands. [By the endof fiscal 2019](Additional functional improvements)

Based on recommendations for additional functional improvements by the Subcommittee onTokyo Metropolitan Airports Functional Enhancement for Technical Review of the Japan
Ministry of Land, Infrastructure, Transport and Tourism, we will consult with relevant
parties on the basis of technical options for the realization of extension of the existing
runway, construction of an additional runway, and relaxation of night-time flight operation
restrictions.

(2) Improved co-existence and mutual prosperity policies which has taken root with the local
community alongside environment countermeasures, and contribution to local growth anddevelopmentWe will take community co-existence and mutual prosperity policies which has taken root toanother level alongside environment countermeasures while deepening the relationship oftrust between the two parties by ensuring that the local community remains fully informedon all aspects so that the community and the airport can exist and prosper together.

We will participate in the regional development policy study team within the Regional
Government Council on Narita Airport comprising the nine municipalities around the
airport10 and actively contribute to initiatives designed to encourage regional development.



Under the concept of creating the world’s leading eco-airport, we will steadily implement
the environmental initiatives in the Eco-Airport Master Plan including steps to reducegreenhouse gas (CO2) emissions and alleviate the environmental impact.

8

Taxiways that allow aircraft to more quickly leave the runway after landing.
A taxiway at the end of the runway where an aircraft waits for takeoff.
10
The cities of Narita, Tomisato, Katori and Sanmu and the towns of Sakae, Kozaki, Tako, Shibayama and Yokoshiba-Hikari.
911

3. Thoroughly enhancing air services network(1) Promotion of air-services route developmentWe will undertake vigorous marketing programs including promotions based on passenger
movements and market surveys.



Toward expansion along the dramatically growing Asian routes, especially new routes toinland China and Southeast Asian cities currently not directly served, we will liaise withthe operators of the prospective airports and actively encourage airlines to consider new
route planning to Narita.



We will also strive to open new routes serving destinations in Europe, Africa, and Central
and South America.

Toward expansion of the domestic network in Japan, we will actively approach the airlines
cooperating with the regional governments and Narita's destination airports that are also
seeking to attract airlines.

Toward expansion of the cargo services network, we will collaborate with currently serving
carriers and warehouse companies to attract new cargo services, and target cargo carriers
with promotions at cargo-related forums and other events.



We will lobby the Japanese government to pursue further Open Skies agreement.

To maintain and expand the air services network, we will move forward with strategic fee
and charge systems including deepening the incentive schemes.

(2) Encouraging airlines to establish hub operations at Narita
Measures to support hub operations by the three major airline alliances

We will implement initiatives based on the needs of the airlines and airline alliances toencourage the three major airline alliances to utilize Narita as an operation hub.


We plan to work together with the airlines to introduce systems that will support more
efficient check-in counter operations. [By the end of fiscal 2017]



We will expand the passenger security check areas in Terminals 1 and 2 and open new
high-efficiency screening lanes (Smart Security Program).



We will install additional baggage handling facilities for departures in South Wing in
Terminal 1. (Previously mentioned)

We will provide additional departure bus gates in Terminal 1. (Previously mentioned)

We will consider providing baggage services for passengers unable to through-check
between connecting airlines and passengers with tight transit connections. We will also
work to improve transit convenience, including smoother security screening to shorten
the time needed for connections.



We will work to devise an efficient operating system for ramp-side buses and ensurethat there is sufficient bus transport capacity available during the peak hour period at
Narita.

Measures to encourage LCC hub operations
To encourage LCCs to use Narita for hub operations, we will push forward with initiatives
for enhancing the convenience and increasing the capacity of Terminal 3.


We will expand the Terminal 3 check-in counter capacity through such measures as
12enabling some domestic counters to be switched over for use for international flights.
[By the end of fiscal 2016]


We will make Terminals 2 and 3 more accessible by shortening the route of the terminal
shuttle buses. [By the end of fiscal 2016]



We will add aircraft parking-stands to the apron on the north side of the Terminal 3
satellite building.

Enhancing the airport's value as an air cargo logistics center

We will expand fixed temperature warehouse11 capacity in order to enhance the quality ofcargo handling. [By the end of fiscal 2017]



We will hold Forklift and Pallet Building Competitions12 to stimulate improvement of thequality of cargo handling work at the airport.



We will contribute to initiatives promoting exports of agricultural products and foodstuffs
through participation in the Narita Wholesale Market Exports Logistics Center Promotion
Council comprising Narita City Municipal Government, producers and logistics operators;
and the Council for the Export of Agricultural Products from the Area around Narita
International Airport made up of the nine municipalities around the airport.

11

Facilities equipped to keep temperature and humidity within fixed ranges, for storage of cargo such as fresh fish or medical supplies which
require temperature control.
12
To raise the safety awareness and work quality of airport employees, competitions involving basic forklift operation and cargo stacking (palletbuilding) are held with the goals of establishing safe work practices and helping to prevent workplace accidents.

13

4. Increasing by providing the world’s highest standards and creating more attractive retail spaces(1) Pursuing more efficient facility operations including Fast Travel implementation
With coordination and cooperation with relevant authorities, airlines and other parties, wewill pursue initiatives reduce customer processing and waiting times as much as possible, tolet customers to complete the necessary airport procedures stress-free.
We will support encouraging the use of off-airport check-in, which allows passengers tocheck in before arriving at the airport. ［From fiscal 2016］

In addition to the previously introduced automatic self-check-in machines, we will
expedite the introduction of automatic bag drop kiosks. ［From fiscal 2016］



We will expand the passenger security check areas in Terminals 1 and 2 and open new
high-efficiency screening lanes (Smart Security Program). (Previously mentioned)

We will cooperate toward expanded use of automatic gates for passport control.

We will pursue optimization of the terminal signage, including unification of concept and anemphasis on designing for ease of understanding, to assist passengers move smoothly
through the terminals without confusion.

We will monitor passenger flow through the airport and introduce optimization techniques
to increase the operating efficiency of airport facilities.



We will work with the relevant authorities, airlines and other parties involved in airport
operations to introduce Airport Collaborative Decision Making (A-CDM) to facilitate on-time
flight operations in coordination with Fast Travel and other initiatives.

(2) Creating attractive retail spaces

To create attractive retail spaces meeting the needs of diverse customers including thegrowing number of foreign visitors to Japan, we will open shops with innovation andcontemporary flair, and shops that project the distinctive character of Japan and Narita
Airport, and offer product lineups that will satisfy our customers, including products
available only at Narita Airport.


We will expand the “Narita 5th Avenue” exclusive brand mall and duty-free shops in
Terminal 2. [Opening in November 2016]



We will renovate the food court area on the landside, on the fourth floor in Terminal 1.
[By December 2016]



We will open new shops on the airside, mainly in the Central Building on the third floor
in Terminal 1. ［From fiscal 2016］



We will continue renovating the “Airport Mall” on the landside, on the fourth floor in
Terminal 2. ［From fiscal 2016］



We will utilize unused spaces and vacant sections to open new shops and expand thefloor space of existing shops.

(3) Providing services with comfort and pleasure

We will pursue initiatives to allow airport customers to have more comfortable experiencesand enjoyable use of the time saved by the shortening of processing and waiting times.


We will renovate the toilets in Terminals 1 and 2 to provide hygienic, pleasant facilities.
[Terminal 1: by the end of fiscal 2019, Terminal 2: by September 2018]14

We will install richly varied seating for customers to relax while waiting to board theirflights. ［From fiscal 2016］



We will equip seats with electric plugs and provide power chargers in gate lounges, so
customers can freely use computers and other portable devices before boarding.
[By the end of fiscal 2017]



We will enhance the Wi-Fi environment with new entertainment services, transmitting
appealing content including multimedia programs for enjoyment on wearable devices.
[By December 2016]



We will present appealing daily events and exhibits providing information andexperiences of Japanese culture on the landside and airside areas. [Exhibits: monthly,
events: daily]

We will create Japanese cultural atmosphere in the passenger terminals. [By fiscal
2016]



We will pursue optimization of the terminal signage, including unification of concept and anemphasis on designing for ease of understanding, to help customers move smoothly throughthe terminal without confusion. (Previously mentioned)

We will continue providing lounges and other facilities on the airside to allow transit
passengers to pass their time at the airport more enjoyably.



We will advance the studies of the possibilities of introducing pre-clearance13 for entry into
the United States to allow completion of entry formalities at the airport of departure(Narita).



To provide more convenient airport access for customers accessing by car, we will carry out
road improvements (more lanes) around Terminal 1 and convert Car Park P1 into a
multistory car park.



We will redesign the airport website to offer customers using the airport with more easily
obtain the information they need. [By December 2016]

Towards service enhancement for VIPs and other special guests


We will facilitate the completion of Fast Lane installed by the Japanese government, toprovide faster immigration processing for foreigners attending conferences, VIPs, etc.



We will develop plans for expansion of facilities related to business jets, to provide greater
convenience for the users.

In preparations for the 2020 Tokyo Olympic and Paralympic Games

On the basis of consultations with relevant parties, we will prepare for procedures tosupport the safe, smooth movements of athletes and officials during the games, including
dedicated lanes, procedures for handling their large amounts of baggage, and designatedpassageways for groups of people in wheelchairs. [By the end of fiscal 2019]

To ensure customers to reach where they want to go at the airport smoothly and without
stress, we will expand the use of universal design in the airport from the three standpoints

13

The pre-clearance system allows completion at the airport of departure of some of the procedures involved in passport control upon arrival in
the US. The US has already instituted pre-clearance at 15 airports in six countries including Canada. In May 2015, the US Department of Homeland
Security announced plans to introduce pre-clearance at ten additional airports, including Narita, in nine countries.

15

of user friendly facilities, offer of comfort with peace of mind, and ease of obtaining
necessary information. [By the end of fiscal 2019]
Promoting Japan as an attractive tourist destination
We will make the airport a more welcoming environment in line with government tourism
policies and customer needs.



In coordination with tourism-related organizations, we will undertake promotions andmeasures to stimulate higher demand toward increasing the use of Narita Airport.

To support the development of the airport, we will take steps including functional
improvements to stimulate the economy of Chiba Prefecture, and work with tourism
organizations on policies to promote the use of Narita airport and encourage regional
development together.

(4) Creating a smart airport of the world’s highest standards with the most advanced informationand communications technologies

To provide a stress-free environment for electronics use, we will install a free high-speed
wireless network using WiGig®, a system designed to the highest standards in the world.



To provide customers with a one-stop source for complete information, we will installnext-generation interactive digital signage with capacity for automated responses in
multiple languages. [Partial installation by fiscal 2017, full installation by fiscal 2018]

As an additional service for guiding customers toward their destinations within the airport,
we will introduce autonomous mobile robots equipped with a collision prevention function.



We will develop and deploy new assistance robots to increase the efficiency of such airport
operations as cleaning and the loading, unloading and transfer of baggage.

We are developing information system to transmit guidance to customer’s mobile gadgets toshow customers the best route to reach where they want to go within the airport, based onhigh-precision positional measurement technology. [By fiscal 2017]



We will install systems utilizing the most advanced information and communications
technology to make airport signages, information and restaurant menus easily readable inmultiple languages, so customers can easily obtain all the information they need without
the frustration of language barriers. [Technical specification by the end of fiscal 2016](5) Providing more convenient access to/from the airportWe plan to extend railway and bus operating hours (to late night and in early morning) andattract new service route operators for the bus network.

We will increase the availability of airport information for customers and disseminate
publicity about the more convenient access of Narita, via such bodies as the Liaison Council
for Improving Accessibility at Narita Airport, etc., which is made up of NAA, government
agencies, transport operators and other relevant parties.



To ensure smooth operation of additional scheduled and chartered buses, we will work
towards optimization of airport facility management on a basis of extending the curbside
facilities at the passenger terminals.
16

5. Reinforcing NAA corporate group management strength and competitiveness(1) Strengthening of corporate profitability with emphasis on retail businessWe will strengthen our revenue base by adapting to diverse customer needs, linking air
travelers, especially the growing number of foreign visitors to Japan, to generate andsteadily increase retail sales.

Preparations for expansion of retail space

We will expand the “Narita 5th Avenue” exclusive brand mall and duty-free shops in
Terminal 2. [Opening November 2016] (Previously mentioned)

We will open new shops on the airside, mainly in the Central Building on the third floor in
Terminal 1. [From fiscal 2016] (Previously mentioned)

We will utilize unused spaces and vacant sections to open new shops and expand the floor
space of existing shops. (Previously mentioned)

Toward improvement of sales efficiencyWe will renovate the food court area on the landside, on the fourth floor in Terminal 1. [ByDecember 2016] (Previously mentioned)

We will continue renovating the “Airport Mall” on the landside, on the fourth floor in
Terminal 2. [From fiscal 2016] (Previously mentioned)

We will open new shops tailored to the needs of visitors to Japan from overseas, and workwith relevant parties to create new services and businesses.

Attracting more visitors to the airport

Not only to increase customers departing or arriving by plane, we will encourage the generalpublic to consider Narita Airport as a place they are always welcome to visit and enjoy.

To encourage visitors to Japan from overseas to make more purchases, we will organize
tie-ups with overseas travel agents and utilize internet sites to carry out sales promotions
online. ［From fiscal 2016］

To encourage greater number of foreign travelers to visit Japan and stimulate Japan
resident demand for overseas travel, we will work with the relevant parties to publicize thenew duty-free shopping style of downtown duty-free shops, and work to expand the
duty-free sales market in Japan.

(2) Strengthening management efficiency across the entire group, and forging a flexible financial
strategyWe review operating procedures on an ongoing basis, to improve business practices, increase
operating efficiency, and enhance productivity.



We will work toward total safety, improved business systems and better quality in ourcontractor subsidiaries. Our retail facilities will adapt to changes in the businessenvironment and initiate improvements. We will set the mission and business scope of eachsubsidiary, and follow up with its appropriate reorganization and integration.

To further reduce costs across the entire group, we will establish study teams on open
procurement (generic goods and use of open technology) and energy conservation, with the17inclusion of external experts.


We will work toward stronger financial fundamentals to introduce further functional
improvements with total management efficiency across the entire corporate group while
also moving forward with the diversification of financing arrangements.



We will take measures to ensure continuous sound management, including the use ofoperating cash flow to finance capital expenditure, and ongoing management emphasis on
cash flow.

(3) Building a corporate culture that actively makes challenges


Toward realization of the Narita Airport’s vision for its future, we will actively implement
personnel exchanges programs and cross training opportunities with non-NAA groupcompanies in order to foster and secure good human resources, including mid-career
recruiting, so that they can respond quickly to changes without merely following accepted
practices and approaches and who can seize the initiative from different perspectives.



We will energize our corporate structure through ongoing programs to activate
communication between employees and executives and to sustain pleasant workplaceenvironments, while also assessing our organization periodically.

(4) International cooperation to provide expertise on airport construction and operation overseas

We are making steady progress with the technical assistance project for the New
Ulaanbaatar International Airport.



For the future, we are seeking opportunities to provide management and operating
expertise for overseas airports.

(5) Public listingWe will continue to prepare for the public listing of company stock, while monitoring the
progress of government consideration.

18

V. Capital Investment PlanDuring this plan period (fiscals 2016 to 2018) we will make capital investment of JPY160
billion (consolidated). The capital investment will be financed by operating cash flow.

Bringing safety and operating stability to the world’s highest
standards
Improving airport functionalities and partnership with the local
community
Thoroughly enhancing air services network
Increasing customer satisfaction by providing the world’s highest
service standards and creating more attractive retail spaces
Reinforcing NAA corporate group management strength andcompetitiveness

JPY55 billion
JPY60 billion
JPY20 billion
JPY20 billion
JPY5 billion

End

19

Fiscals 2016-2018 NAA Group Mid-term Management Plan

Innovative Narita 2018

– Aiming to be the Airport of the World’s Highest Standard –April, 2016

Narita International Airport Corporation

IndexManagement Environment
Surrounding Narita Airport

P.2

Overview of the
New Mid-term Management Plan

P.8

Narita International Airport Corporation

11. Management Environment
Surrounding Narita Airport2

Summary of the Previous Mid-termManagement Plan
Main Results of Fiscals 2013 to 2015
During the previous mid-term management plan period, initiatives to become the airport of customers’ choiceincluded the expansion of airport capacity to 300,000 aircraft movements a year, introduction of non-stop
security at airport gates and the opening of Terminal 3. Narita Promotional Incentives were also introduced,
exempting eligible airlines from landing fees for a period of up to 1 year.
Management targets were set at a consolidated return on assets of 4.2% or higher, consolidated long-term
debt balance of 520 billion yen or less, ratio of consolidated long-term debt balance to consolidated
operating cash flow of 8.0 or less; and handling volume targets were set at 260,000 aircraft movements, 37
million passengers and revenue from airport duty-free shops, merchandise outlets and restaurants of 80
billion yen. All targets, except for aircraft movements, are expected to be achieved.
Aircraft movements are expected to reach at around 235,000, owing in part to changes in the industry
environment such as the increase of direct flights between Asia and North America and the slower than anticipateddeployment of international services by LCCs.

Management Target Achievement Progress
Target
FY2015 Forecast
Category
Aircraft movements
260,000
235,000 (Actual figures until Feb, March figures are estimates)
Handling(As above)volume targets Passenger numbers
37 million pax.
37.9 million pax.
(FY2015 interim forecast for full year)
Consolidated ROA
4.2% or better
Approx. 4.7%
(As above)(Consolidated operating income)
JPY36 billion or more JPY40.4 billion(As above)
Consolidated long-term debt balance
JPY520 billion or less Approx. JPY480 billion
Management
Ratio of consolidated long-term debt balancetargets(As above)
8.0 or lessApprox. 7
to consolidated operating cash flow
Revenue from airport duty-free shops,(As above)
JPY80 billion
JPY116.6 billion
merchandise outlets and restaurants
CapitalCapital investment program (fiscals 2013 to(As above)
JPY145 billion
JPY132.7 billion
investment
2015, cumulative
Narita International Airport Corporation

3

Changes in the Management Environment
Surrounding Narita Airport
As the future unfolds, the powerhouse of growth in the global air services market is passenger trends in Asia.
The competition to capture the market has already begun and the major airports in Asia and the Middle East are racing to tap into growth in
the region, including the growth in cargo traffic.
In the prevailing circumstances, Narita Airport has already been swept up in the intense competition between the major airports in Asia.
International Passenger Traffic at Major Airports in Asia & Middle East

Global Airport Passenger Traffic Estimates (2013 - 2033)
2,938

8,000

(10,000 pax.)
Dubai

2,838

1,514
5,525

1,467

Hong Kong

2008
Global economic crisis

6,000

Changi
IncheonEurope+3.4% p.a.

4,000

1,631

NaritaNorth America+3.4% p.a.
484

March 2011
Great East Japan Earthquake

2,000

1,574

2006
Middle East
+6.3% p.a.

125

391

283
Latin America+6.4% p.a.

Africa
+5.9% p.a.

2008

2009

2010

2011

2012

2013

2014

(Year)(Source: ACI, Annual World Airport Traffic Report)

986

Asia
+6.5% p.a

2007

Trends in Foreign Visitors to Japan and at Narita Airport

2500
2000

(10,000 pax.)

成田空港国際線外国人旅客数
Foreign passengers on international flights at Narita
Visitors to Japan
訪日外国人旅客数

1500
Legend: Units = Billion passenger kilometers

Worldwide+4.9% p.a.

1000
500

2013
Passenger
Traffic

Avg. growth rate p.a.
between 2013 and 2033

2033
Passenger
Traffic(Estimate)

Narita International Airport Corporation

0(Source: Japan Aircraft Development
Corporation)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
(Source: Japan National Tourism Organization (JNTO), Narita Airport
Traffic Statistics)(Year)

4

Changes in the Management Environment
Surrounding Narita Airport
Major Asian airports are expected to complete large scale facility development projects between 2017 and 2019and competition for routes between international airports is expected to escalate further.
Incheon International Airport:
24-hour operation

Beijing Daxing International Airport:
24-hour operation■ 2018: Opening of Terminal 2
Completion of cargo terminal expansion
Completion of apron expansion

2019: Opening of airport (4 runways)
2025: Completion of fifth and eighth
runwaysPresent―――

Aircraft Movements p.a.
Passengers p.a.
No. of runways

Planned
Unspecified
130 million
8

Changi Airport: 24-hour operation

Aircraft Movements p.a.
Passengers p.a.
No. of runways

Hong Kong International Airport: 24-hour operation

2017: Opening of Terminal 4
Early 2020s: Completion of third runway
2025: Opening of Terminal 5

Present

Planned

350,000

Unspecified

54.09 million

Unspecified

Passengers p.a.

No. of runways

2

3

No. of runways

Narita International Airport Corporation

Aircraft Movements p.a.

Planned
740,000
100 million
5

Shanghai Pudong International Airport: 24-hour operation

2015: Completion of midfield concourse
2023: Completion of third runway
Completion of Terminal 2 expansion

Aircraft Movements
p.a.
Passengers p.a.

Present
290,000
45.66 million
3

2015: Opening of fourth runway
2019: Completion of satellite hall and associatedfacilities
Fifth runway planned

Present

PlannedAircraft Movements p.a.

400,000

Unspecified

97.00 million

Passengers p.a.

51.69 million

100 million

3

No. of runways

4

5

Present

Planned

400,000

602,000

63.12 million
2(Source: Airport websites and media release materials)

5Changes in the Management Environment
Surrounding Narita Airport
According to projections by the Ministry of Land, Infrastructure, Transport and Tourism, the capacity of the airports in Greater
Tokyo Capital Area as planned at the moment, will near its limit by the 2020's.
Given that situation, Narita Airport is tasked with honing the international competitive edge of the nation and Greater Tokyo
Capital Area and further improving its functionality in view of greater numbers of visitors to Japan.

Narita International Airport Corporation(Source: Compiled by NAA based on materials from the 1st Meeting of the Subcommittee on Technical Deliberations for
Function Reinforcement of Tokyo Metropolitan Airports)

6

Narita Airport’s Vision for its Future
To achieve our position as the leading airport of Asia, the
NAA Group envisions the following for the three fiscal years
2016 to 2018.
We will pursue to become an airport of world’s highest
standards to drive for customer acknowledgement to beoffering the finest level in the world by making endlesschallenges for safety and service quality.
We will pursue to retain and reinforce our position as the
top class international hub airport in Asia throughexpanding air services network by serving the needs of theairlines with enhancing airport functionalities, along withinitiated further functional improvements to support
sustainable growth and development of Narita Airport.
Narita International Airport Corporation

7

2. Overview of the New
Mid-term Management Plan

Narita International Airport Corporation8

Priorities of the New Mid-termManagement Plan

Pressure on supply anddemand for air services
in Greater Tokyo Capital Area

Growth of air transport
Initiatives at Narita Airport
demand in Asia
General Concept■ Improve competitiveness among other major Asian airports
Era of 40 million visitors to■ Lay the groundwork for further rapid progressJapan■ Make full preparations to support the safe, smooth hosting
Growth vector
2020 Tokyo Olympic andof the 2020 Tokyo Olympic & Paralympic Games
Paralympic Games
Intensifying
Rugby World Cup 2019
competition
Ise-Shima Summit
between airports
Open skies
Era of 20 million visitors to Japan
Second expansion ofinternational slots at Haneda
Functional enhancement by major Asian airports
FY2013

FY2014FY2015Innovative Narita 2015

FY2016FY2017FY2018FY2019FY2020〜Innovative Narita 2018

Priorities

We regard the coming three fiscal years 2016 to 2018 as a period to improve competitiveness among
other major Asian airports, laying the groundwork for further rapid progress, and making full
preparations to support the safe, smooth hosting of the 2020 Tokyo Olympic and Paralympic Games.
Toward realizing our vision for Narita Airport’s future, we will steadily but expeditiously work toward thetargets of the following five strategic policies.

5 Strategic Policies

1.

Bringing safety and operating stability to the world’s highest standards (utmost priority)

2.

Improving airport functionalities and partnership with the local community (foundation of airport
competitiveness)3.

Thoroughly enhancing air services network (key factor for airport competitiveness)4.

Increasing customer satisfaction by providing the world’s highest service standards and creating
more attractive retail spaces (truly become the airport of choice)5.

Reinforcing NAA corporate group management strength and competitiveness (continuous soundmanagement）

Narita International Airport Corporation

9

Strategic Policy 1

Bringing safety and operating stability to the world’s
highest standards
Key Initiatives
Enhance risk management and safety control systems in cooperation with relevant* Advanced imaging technology,
organization and build a safety culture
Strengthen security systems through utilization of the latest AITStrengthening the Risk Management System* including body scanners and otherequipment.

Total Safety and Operating Stability

Strengthen the risk management
system of the entire NAA Group

Carry out planned equipment
replacement

Introduce next-generation
screening equipment
Strengthen security systems
through utilization of the latest AIT.

Determine reference values forequipment operating ratios andfailure recovery times, andmanaging equipment underthorough PDCA practices

Enhance defense against
cyberattacks
Introduce cutting-edge safetymeasures and information security
systems.

Enhance safety culture among all
staff working at the airport
Pursue thorough safety education byadding new training programs for all
airport employees.

Strategic Targets: “Three Zeroes” for Airport Operation
Zero aircraft accidents, with sound precision airport operations
Zero malfunctions in facilities which can seriously affect airport operation
Zero hijacking or terrorism incidents, with solid security measures
Narita International Airport Corporation

10Strategic Policy 2

Improving airport functionalities and partnership withthe local community
Key Initiatives
Further expand the air services network by increasing peak hour periods capacity
Pursue consultations with relevant stakeholders toward further functional improvement at Narita
Deepen the partnership with the local community for co-existence, mutual prosperity and stronger
environmental protection
Reduce the environmental impact under the Eco-Airport Master Plan
Promotion of Airport Function Improvements

Co-existence and Mutual Prosperity Policies, andContribution to Local Development
Co-existence and mutual prosperity with local
community
Take community co-existence and mutual
prosperity policies which has taken root toanother level while deepening the relationship oftrust between the two parties by ensuring thatthe local community remains fully informed on all
aspects so that the community and the airport
can exist and prosper together.
Creating an eco-airport
Steadily implement the environmental initiatives
in the Eco-Airport Master Plan including steps toalleviate the environmental impact.

Expanding hourly capacity to 72 aircraft
movements
Reconfigure the high-speed exit taxiways on
Runways A and B and augment othernecessary facilities.
Additional functional improvements at
Narita Airport
Consult with relevant parties on options for
additional functional improvements including
extension of the existing runway, constructionof an additional runway, and relaxation ofnight time flight operation restrictions.

Strategic Targets
Hourly movement capacity (including aircraft takeoffs and landings) during peak periods: 72 (by the endof fiscal 2018)
Aircraft movements (annual): 270,000 (in fiscal 2018)
Greenhouse gas (CO2) emissions: 7% below fiscal 2015 level (per aircraft movement, by the end of fiscal
2020)
Narita International Airport Corporation

11

Strategic Policy 3

Thoroughly enhancing air services network
Key Initiatives
Add further strength to our air services network by pushing forward enthusiastically with marketing
activities
Reinforce our position as the key hub airport linking Asia with North America by opening new routes toAsia and improving transit convenience
Add domestic routes to serve Japan resident travelers as well as the growing numbers of foreign
visitors to Japan
Meet airline and airline alliance needs to encourage hub use by the three major airline alliances
Encourage hub operations for LCCs offering short-haul routes in Asia and within Japan
Enhance Narita's value as an air cargo logistic center to expand cargo services network
Promotion of Route Development

Push forward with marketing
activities
Further expand dramaticallygrowing Asian routes

Encouraging Airlines to Establish Hub Operations at Narita
Measures to support hub operations by
the three major airline alliances
Measures to encourage LCC hub
operations
Enhance the airport's value as an air
cargo logistics center

Strategic Targets
Destinations served(by the end of fiscal 2018)
LCC flight share (in fiscal 2018)
Passenger numbers(in fiscal 2018)
Air cargo volume (in fiscal 2018)
Narita International Airport Corporation

Overseas: 130 cities or more

Domestic: 20 cities or more

30% or higher (LCC proportion of passenger flights)
43 million
International flights: 35.5 million
Domestic flights:(Foreign passengers including transits:
7.5 million
22.6 million)
2.1 million tons

12

Strategic Policy 4

Increasing customer satisfaction by providing the world’s highest
service standards and creating more attractive retail spaces
Key Initiatives
Improve on-time flight operation through promotion of Fast Travel and introduction of Airport CDM *To create attractive retail spaces meeting the needs of the growing numbers of foreign visitors to Japan,
provide enhanced pre-boarding environment
Use the most advanced ICT to create a smart airport to surprise and impress passengers
Prepare to support the safe, smooth hosting of the 2020 Tokyo Olympic and Paralympic Games
Airport CDM: Airport Collaborative Decision Making
Initiative to promote precise, timely sharing of predictive data on airport utilization among airport partners (ATC, airlines, airport
operators, etc.), to increase airport operating capacities through best use of resources.

Specific Initiatives(1) Pursuing more efficient facility operations including Fast
Travel implementation(2) Creating attractive retail spaces(3) Providing services with comfort and pleasure(4) Creating a smart airport of the world’s highest standards withthe most advanced information and communications technologies

Refer tosubsequentpages fordetails(5) Providing more convenient access to /from the airport

Strategic Targets (by the end of fiscal 2018)
On-time flight operation rate ⇒ The world’s top level
Percentage of passengers utilizing self-service options ⇒ 80% or higher*1*2

Processing time ⇒ Departures: within 10 minutes ; Arrivals: within 30 minutes
SKYTRAX World Airport Rating⇒ Acquisition of 5-star airport rating (the highest level in the world)
Narita International Airport Corporation*1 Departure lobby to duty-free shop area
*2 Disembarkation to arrival lobby

13Strategic Policy 4

Increasing customer satisfaction by providing the world’s highest
service standards and creating more attractive retail spaces(1) Pursuing more efficient facility operations including Fast Travel implementation

Fast Travel * is designed to provide shorter waiting times for passengers, more
efficient and better on-time flight operation rates for airlines, and higher handling
capacity and less passenger terminal congestion for airports.
General Concept① Easy to see
signs② Self checkin system③ Self bag
drop system④ Smoother, advanced
security screening⑤ Enhanced preboarding environment* The IATA Fast Travel Program recommends the automation of passenger procedures (self-service) and the introduction of common-use facilities.

Strategic Targets (by the end of fiscal 2018, previously mentioned)

On-time ﬂight operation rate ⇒ The world’s top level
Percentage of passengers utilizing self-service options ⇒ 80% or higher*1 Departure lobby to duty-free shop area
*1
*2
Processing time ⇒ Departures:within 10 minutes ; Arrivals:
within 30 minutes *2 Disembarkation to arrival lobby
Narita International Airport Corporation

14

Strategic Policy 4

Increasing customer satisfaction by providing the world’s highest
service standards and creating more attractive retail spaces
Specific Initiatives for Retailing
Strategic Policy 4:(2) Creating attractive retail spaces

Adapt to diverse customer needs, and open shops with innovation andcontemporary flair, and shops that project the distinctive character ofJapan and Narita Airport, to create retail spaces that are more
attractive.

Strategic Policy 5:(1) Strengthening of corporate profitability
with emphasis on retail business①For expansion of retail space⇒ Expand the “Narita 5th
Avenue” exclusive brand andduty-free mall in Terminal 2,
open new shops on the airside ofTerminal 1, etc.

Strengthen revenue base by linking air travelers, especially thegrowing numbers of foreign visitors to Japan, to retail sales.

② For improvement of sales
efficiency⇒ Renovate the food court area in
Terminal 1 to introduce new
shops, renovate the “Airport Mall”
in Terminal 2, etc.

③ To attract additional visitors
to the airport⇒ In addition to departing andarriving passengers, encourage
the general public to visit Narita
Airport, hold sales promotions
targeting visitors to Japan, etc.

Strategic Targets for Retailing (in fiscal 2018)
Revenue from airport duty-free shops, merchandise outlets and restaurants ⇒ : JPY150 billion(From Strategic Policy 5)
Narita International Airport Corporation

15

Strategic Policy 4

Increasing customer satisfaction by providing the world’s highest
service standards and creating more attractive retail spaces(3) Providing services with comfort and pleasure
Pursue initiatives to allow airport customers to make more comfortable and enjoyable use of the time saved by
the shortening of processing and waiting times.
Provide new services for VIPs and other special guests, and prepare for the 2020 Tokyo Olympic and Paralympic
Games.
Renovate the toilets in Terminals 1 and 2 toprovide hygienic, pleasant facilities
Install richly varied seating to help customers relax
while waiting
Equip seats with electric plugs and provide power
chargers
Enhance entertainment services, transmitting
appealing content
Present appealing daily events and exhibits
providing information and experiences of JapanesecultureOptimize terminal signage designs, etc.

Facilitate the completion of Fast
Lane installed by the Japanese
government, to provide faster
immigration processing forforeigners attending conferences,etc.
Prepare frameworks to support
the safe, smooth transfer ofathletes and officials during the2020 Tokyo Olympic andParalympic Games, etc.

(5) Providing more convenient access to/from the airport
Extend railway and bus operating hours to late night and in early morning, and publicize Narita
Airport's accessibility

Extend railway and bus operating hours (to late night andin early morning)
Attract new route operators for the bus network
Increase the availability of information for customers anddisseminate publicity via such bodies as the Liaison Council
for Improving Accessibility at Narita Airport, etc.

Narita International Airport Corporation

16

Strategic Policy 4

Increasing customer satisfaction by providing the world’s highest
service standards and creating more attractive retail spaces(4) Creating a smart airport of the world’s highest standards with the mostadvanced information and communications technologies① Installation of free high-speed
wireless network (WiGig®) designed
to the highest standards in the world⇒ Provide a stress-free environment
enabling high-speed download of largevolume contents using the short time
available while waiting for flights, etc.

④ Development and deployment ofassistance robots⇒ Develop and deploy new assistancerobots to increase the efficiency of such
airport operations as cleaning and theloading, unloading and transfer ofbaggage

Narita International Airport Corporation② Installation of nextgeneration interactive digital
signage with capacity for
automatic responses inseveral languages⇒ Provide customers with aone-stop source for complete
information③ Introduction ofautonomous mobile
robots equipped withcollision preventionfunction⇒ Provide innovative service
for guiding customers totheir destinations within the
airport⑤ Development of route guide service using highprecision positional measurement technology⇒ Develop service to show customers thebest route within the airport, and upon
arriving Narita Airport to their destinations, on byportable devices based on high-precision
positional measurement technology

17Strategic Policy 5

Reinforcing NAA corporate group management
strength and competitiveness
Key Initiatives
Consolidate revenue base through retail operations and strengthen financial fundamentals through totalcommitment to management efficiency
Place management priority on securing a steady cash flow for continuous sound management(1) Strengthening of corporate
profitability with emphasis on retailbusiness (Previously mentioned)

Adapt to diverse customer needs and consolidate the revenue base by solidly
linking the growing number of overseas visitors to Japan to retail sales.

(2) Strengthening management
efficiency across the entire group,and forging a flexible financial
strategy

Increase operating efficiency and enhance productivity to strengthen management
efficiency, use operating cash flow to finance capital expenditure, and work
towards stronger financial fundamentals to introduce further functional
improvements. Also move forward with the diversification of capital procurement.

(3) Building a corporate culture that
actively makes challenges

Enhance personnel exchange and cross training programs and implement midcareer recruitment to secure and foster human resources who do not merely follow
accepted practices.
Make steady progress with the technical assistance project for the New
Ulaanbaatar International Airport, and seek opportunities to provide expertise tooverseas airports.

(4) International cooperation toprovide expertise on airport
construction and operation overseas

Continue to prepare for the public listing of company stock, while monitoring the
progress of government consideration.

(5) Public listing

Strategic and Financial Targets (Fiscal 2018)
Strategic Targets

Financial Targets

Revenue from airport duty-free shops, merchandise outlets
and restaurants (previously mentioned)
Consolidated operating income
Consolidated ROA
Consolidated long-term debt balance
Ratio of consolidated long-term debt balance to consolidated
operating cash flow

Narita International Airport Corporation

JPY150 billion
JPY49 billion or higher
5.5% or higher
Low JPY450 billion
6.2 or less18

Strategic Policy
Bringing safety
and operatingstability to theworld’s highest
standards
Improving
airportfunctionalities
and partnershipwith the local

Relations between Strategic Policies andTargets

Strategic and Financial Targets
Incidence of aircraft accidents, with sound precision airport
operations
Incidence of malfunctions in facilities which can seriously affectairport operation
Incidence of hijacking or terrorism, thanks to solid security
measures

Strategic Targets

Zero (as of fiscal 2015)

During the term

Zero

Zero (〃)

During the term

Zero

Zero (〃)

During the term

Zero

By the end of FY2018

72

68 (present)

Aircraft movements (annual)

235,000 (actual figures until Feb + estimates for Mar)Greenhouse gas (CO2) emissions (compared to FY2015, peraircraft movement)

Reference: CO2 emissions per aircraft movement: 4.35 t (FY2014
figures)

By the end of FY2020

7% reduction

Overseas destinations served

107 (as of Mar 24) * 106 according to announcement at beginning of
winter schedule

By the end of FY2018

130 or more

Domestic destinations served

17 (as of Mar 24) * Including Kita-Kyushu as a transit point forinternational flight

By the end of FY2018

20 or more

FY2018270,000

Approx. 25% (actual figures until Feb + estimates for Mar)FY201830% or higher

37.9 million (actual figures until Feb + estimates for Mar)FY201843 million

31 million (actual figures until Feb + estimates for Mar)FY201835.5 million

18 million (actual figures until Feb + estimates for Mar)FY201822.6 million

6.9 million (actual figures until Feb + estimates for Mar)FY20187.5 million

Air cargo volume (annual)

2 million tons (actual figures until Feb + estimates for Mar)FY20182.1 million tons

On-time flight operation rate

83.7% (Dec 2015 Flight Stats data) → See margin notes

By the end of FY2018

World’s top level

Percentage of passengers utilizing self-service options

Zero* Assessed as being "Not Implemented" because there is no self-service
bag drop, which is an essential project

By the end of FY2018

80% or higher

Processing time (departures)

Terminal 1: 23 to 33 mins.; Terminal 2: 20 to 23 mins.
(FY2014 Passenger Movement Analysis Survey)

By the end of FY2018

10 mins. or lessProcessing time (arrivals)

Terminal 1: 27 to 28 mins.; Terminal 2: 26 mins. ( 〃 )By the end of FY2018

30 mins. or less

SKYTRAX World Airport Rating

4-star rating (FY2015 1st Half SKYTRAX Audit)

By the end of FY2018

5-star rating

Revenue from airport duty-free shops, merchandise outlets andrestaurants

JPY116.6 billion (FY2015 forecast at release of interim financial report)

FY2018

JPY150 billion

Consolidated operating income

JPY40.4 billion (FY2015 forecast at release of interim financial report)

FY2018

JPY49 billion or
more

Consolidated ROA

Approx. 4.7% (FY2015 forecast at release of interim financial report)

FY2018

5.5% or higher

Consolidated long-term debt balanceApprox. JPY480 billion (FY2015 forecast at release of interim financial
report)

FY2018Low JPY450 billion

Ratio of consolidated long-term debt balance to consolidated
operating cash flow

Approx. 7 (FY2015 forecast at release of interim financial report)

FY20186.2 or lessPassenger number (annual, foreign passengers on international
flights including transits)
Passenger number (annual, domestic flights)

Reinforcing NAA
corporate groupmanagement
strength andcompetitivenessTarget Date

Hourly aircraft movements during peak periods

LCC flight share (LCC proportion of passenger fligts)
Thoroughly
Passenger number (annual, total)enhancing air
services network Passenger number (annual, international flights)

Increasing
customersatisfaction by
providing theworld’s highest
level service
standards andcreating more
attractive retailspacesPresent* Flight Stats is a US-based research company. Its website provides real-time information on flight status and routes of airlines around the world, as well as on-time performance statistics for each airport,
and has over 3 million monthly users. Data supplied by Flight Stats is widely used and cited by foreign media, etc.

Narita International Airport Corporation

19

Capital Investment Plan
(Fiscals 2016 to 2018)
Capital investment plan for each strategic policy (consolidated, JPY160 billion total)
Operating cash flow will be used to finance the following capital expenditure in fiscal 2016 to 2018
for continuous sound management.
1. Bringing safety and operating stability to the world’s highest standards

JPY55 billion

Construction relating to introduction of AIT, construction to maintain runway and taxiway
capacities, upgrade work on other existing facilities, etc.
2. Improving airport functionalities and partnership with local community

JPY60 billion

Facility development to expand hourly capacity to 72 aircraft movements, configuration of highspeed exit taxiways and expansion of aprons, etc.
3. Thoroughly enhancing air services network

JPY20 billion

Measures to support alliance hub operations (expansion of security check areas), improvement ofTerminal 3 accessibility, etc.
4. Increasing customer satisfaction by providing the world’s highest
service standards and creating attractive retail spaces

JPY20 billion

Renovation of toilets, measures to address congestion on airport roads and in car parks,
preparations for 2020 Tokyo Olympic and Paralympic Games, facility development for CS
improvement, etc.
5. Reinforcing NAA corporate group management strength andcompetitiveness

JPY5 billion

Expansion of “Narita 5th Avenue” in Terminal 2, renovation of 4th floor food court in Terminal 1,
development of lounge area and opening of shops in unused areas on the airside, etc.
Narita International Airport Corporation

20