#1April 1, 2019 to March 31, 2020 (FY19) Earnings Presentation Material (June 10, 2020) * This document has been translated from the Japanese original, for reference purposes only. If there is any discrepancy between this translated document and the Japanese original, the original shall prevail. Japan Airport Terminal Co., Ltd. https://www.tokyo-airport-bldg.co.jp/#2Contents April 1, 2019 to March 31, 2020 (FY19) Earnings Presentation Material 1. Review of Consolidated Financial Results for FY19 (1) Business Environment P 2 (2) Consolidated Financial Results P 3 (3) Consolidated Financial Results (Amount affected due to consolidation of TIAT) (4) Changes in Quarterly Financial Results P 4 P 5 (5) Status of Reflection of Haneda Internationalization Investment P 16 (6) Impact of COVID-19 P 7 2. Outlook for FY20 (1) Current Business Environment and Status of Passenger Volume (2) Main Initiatives for the Current Term P 8 P 9 (3) Impact of Changes in Passenger Volume on Financial Results P 10 3. Progress under the Medium-Term Business Plan (1) Progress of Business Strategies (2) Progress of the Guidelines 4. Medium- to Long-Term Direction P 11 P 11 (1) Forecasts for Passenger Demand P 12 (2) Review of the Operational Method for the Airport Terminal Business (3) Initiative Details P 13 P 14#3Contents Supplementary Material 1. Details of Consolidated Financial Results for FY19 Reference Material 1. Outline of Japan Airport Terminal Group (1) Changes in Passenger Volume P 16 (Haneda, Narita, Kansai and Chubu Centrair) (1) The company's position at Haneda Airport (comparison with other major airports in Japan) P 32 (2) Consolidated Financial Results for FY19 P 17 (2) Business Details P 33 (3) Financial Results by Segment (3) Basic Philosophy and Management Policy P 34 (i) Facilities management P 19 (4) ESG Initiatives P 35 (ii) Merchandise sales (iii) Food and beverage P 20 (5) Company History P 36 P 21 (6) Group Companies P 37 (4) Breakdown of Selling, General and P 22 Administrative Expenses (7) Revenue Composition/Details by Segment, P 38 Composition of sales (5) Changes in Non-Operating Income/Expenses P 2 3 and Extraordinary Income/Loss (8) Changes in Capital Investment P 39 (6) Consolidated Balance Sheets P 24 (9) Summary of Tokyo International Air Terminal Corporation P 40 (7) Consolidated Statements of Cash Flows P 25 [Reference] Purchasing Trends of Non-Japanese Passengers by Nationality P 26 2. Summary of Tokyo International Airport (Haneda) (1) Location Map P4 1 2. Other Information (1) Capital Expenditure and Depreciation Expenses (Results) (2) Comparison of Passenger Volume (3) Domestic Destinations and Flights P42 P4 3 P 29 (4) International Destinations and Flights P 44 (2) Changes in Operating Revenues/Ordinary Income/Cash Flows P 30 (5) International Rating of the Haneda Airport Passenger Terminal P 45#4Earnings Presentation Material April 1, 2019 to March 31, 2020 (FY19) 1. Review of Consolidated Financial Results for FY19 2. Outlook for FY20 3. Progress under the Medium-Term Business Plan 4. Medium- to Long-Term Direction#51. Review of Consolidated Financial Results for FY19 (1) Business Environment Business Environment Number of Passengers (YoY comparison) ➤ A record-high 31.88 million non-Japanese passengers visited Japan in CY2019. Japanese passengers departing from Japan also increased ➤ Passengers to Japan decreased and the economy deteriorated sharply after February due to the impact of the coronavirus pandemic (COVID-19) ➤ In the exchange rate market, a strong yen and weak dollar and yuan continues > Haneda domestic flights increased in the first half of the year but weakened in the second half due partly to the impact of natural disasters with a greater reduction in February and March due to the impact of COVID-19 ➤ Haneda international flights increased compared with the previous year up to January despite a decline in flight passenger volume from Korea after August, with a greater reduction in February and March due to the impact of COVID-19 ➤ The international passenger figure at Narita and other airports decreased significantly in the second half of the year due to a great fall in February and March The number of passengers (YoY comparison) Note: Haneda Airport passenger volume is based on aggregate statistics of airport usage within the jurisdiction of East Japan Civil Aviation Bureau, available on the website of the East Japan Civil Aviation Bureau of the Ministry of Land, Infrastructure, Transport and Tourism. Airport FY19 1H (%) FY19 2H (%) FY19 (%) No. of passengers Revised forecasts Comparison with forecasts (%) (10 thousands) (10 thousands) Haneda - Domestic 0.4 -15.3 ( 2.0) -7.5 6,246 6,833 -8.6 Haneda - International 3.1 -17.8 ( 4.7) -7.4 1,682 1,886 -10.8 Total Haneda 1.0 -15.8 ( 2.6) -7.5 7,928 8,720 -9.1 Narita Kansai Chubu Centrair 2.8 -13.3 ( 4.4) -5.2 3,401 3,716 -8.5 18.6 -23.4 ( 9.2) -3.7 2,205 2,600 -15.2 15.7 -12.5 ( 13.6) 1.6 619 699 -11.4 * Figures in parentheses are revised forecasts for the second half of the year Japan Airport Terminal Co., Ltd. 02#61. Review of Consolidated Financial Results for FY19 (2) Consolidated Financial Results Main Factors Behind Changes ○ Differences from previous fiscal year results ➤ Sales growth in the facilities management business, reflecting an increase in rent revenue, income from parking lots, subcontracted work revenues, etc. despite a decrease in facility user charges revenue due to a reduction in passenger volume ➤ Sales decrease in the merchandise sales business from both domestic and international flight passengers, reflecting the impact of COVID-19, in addition to temporary closure of stores for renovation, etc. and a slow-down in the trend of consumption by Chinese visitors to Japan ➤ Operating income decreased due partly to a one-time cost incurred from the start of operation of the Haneda international flight facilities ○ Differences from revised forecasts ➤ Operating revenue and operating income decrease due to the impact of COVID-19 Consolidated financial results for FY19 Note: Figures shown are rounded down to the nearest 100 million yen. (Billions of yen) 1H 2H Full year Items FY19 FY18 Change FY19 FY18 Change FY19 FY18 Change Revised forecasts *1 Difference Operating revenues 135.2 137.4 -2.1 114.4 136.1 -21.7 249.7 273.6 -23.8 275.7 -25.9 (Facilities management) ( 42.6) ( 40.6) ( 1.9) ( 40.2) ( 41.3) (-1.0) ( 82.9) ( 82.0) ( 0.8) ( 86.1) ( -3.1) (Merchandise sales) ( 82.2) ( 86.5) ( -4.3) ( 65.6) (84.9) ( -19.2) ( 147.8) (171.4) ( -23.5) ( 169.1) ( -21.2) (Food and beverage) ( 10.3) ( 10.2) (0.1) ( 8.5) (9.8) (-1.3) ( 18.9) ( 20.0) (-1.1) ( 20.5) ( -1.5) Operating income 11.1 12.9 -1.8 -1.2 9.5 -10.7 9.8 22.4 -12.5 16.7 -6.8 Ordinary income 10.7 11.7 -1.0 -2.0 8.6 -10.6 8.7 20.3 -11.6 15.1 -6.3 Net income attributable to 5.9 28.2 -22.2 -0.9 4.8 -5.7 5.0 33.0 -27.9 8.3 -3.2 owners of parent Annual dividend Payout ratio ¥22.0 ¥23.0 30.1% 27.1% ¥10.0 ¥22.0 ¥32.0 ¥45.0 51.9% 31.2% ¥42.0 41.1% *1 Financial forecast announced in November 2019 Japan Airport Terminal Co., Ltd. *The calculation excludes the amount that was recognized concerning the consolidation of TIAT 24.6 after considering the deferred tax effect of the one-time extraordinary gain on negative goodwill. Capital expenditures 72.6 57.5 Depreciation expenses 27.8 EBITDA 37.6 47.1 03#71. Review of Consolidated Financial Results for FY19 (3) Consolidated Financial Results (Amount affected due to consolidation of TIAT) Consolidated financial results for FY19 Note: Figures shown are rounded down to the nearest 100 million yen. (Billions of yen) Full year Revised forecasts Items Difference FY19 Amount affected FY18 Amount affected Change due to TIAT consolidation due to TIAT consolidation * 1 Amount affected due to TIAT consolidation Operating revenues 249.7 24.2 273.6 31.9 -23.8 275.7 29.2 -25.9 (Facilities management) ( 82.9) ( 16.3) ( 82.0) ( 20.8) ( 0.8) ( 86.1) ( 21.2) ( -3.1) (Merchandise sales) ( 147.8) ( 7.7) ( 171.4) ( 10.8) ( -23.5) ( 169.1) ( 7.8) ( -21.2) (Food and beverage) ( 18.9) ( 0.1) ( 20.0) ( 0.1) (-1.1) ( 20.5) ( 0.2) ( -1.5) Operating income 9.8 4.9 22.4 9.3 -12.5 16.7 7.5 -6.8 Ordinary income 8.7 2.4 20.3 4.3 -11.6 15.1 4.9 -6.3 Net income attributable to 5.0 0.7 33.0 21.3 -27.9 8.3 1.5 -3.2 owners of parent *1 Financial forecast announced in November 2019 Japan Airport Terminal Co., Ltd. 04#81. Review of Consolidated Financial Results for FY19 (4) Changes in Quarterly Financial Results Operating revenues (Millions of yen) 80,000 68,122 69,300 69,930 70,000 66,265 67,652 67,617 68,181 60,000 6,398 6,562 6,449 50,000 40,000 III 3,070 30,000 Operating income (Millions of yen) 12,500 10,000 7,500 5,886 5,270 4,608 46,304 5,000 2,500 0 ~FY2018~ ~FY2019~ 20,000 -2,500 10,000 | Operating income (right axis) ▪Operating revenues (left axis) -5,000 -5,872 0 -7,500 2018 1Q 2018 2Q 2018 2018 2019 2019 2019 2019 3Q 4Q 1Q 2Q 3Q 4Q (Major events during FY19) Japan Airport Terminal Co., Ltd. 2Q Completion of T1 renovation 3Q... Start of operation of T3 extension; T2 north-side office space expansion; cancellation of flights due to the effects of Typhoon No. 19 4Q Start of operation of T2 international flight facility; impact of COVID-19 05#91. Review of Consolidated Financial Results for FY19 (5) Status of Reflection of Haneda Internationalization Investment ○ Investment amount 95.0 billion yen (Plan 100 billion yen) ○ Investment details: T2 international flight facility expansion T3 terminal extension T2 satellite facility construction T2 boarding station construction T2 office space expansion ○ Effects Support for an approx. 1.4 times increase in international flight slots Improved convenience, functionality, and comfort Increase in area to be leased O Impact on financial results for FY19 One-time cost Depreciation expenses 2.9 billion yen 2.5 billion yen ○ Impact on financial results for FY20 Depreciation expenses Completed in May 2018 Domestic flight area Terminal 2 north-side boarding station Terminal 2 Completed in December 2018 Terminal 2 satellite facility Completed in October 2019 Terminal 2 office space expansion International flight area Japan Airport Terminal Co., Ltd. Terminal 1 Terminal 3 (former international flight terminal) 06 2018 9.3 billion yen Completed in March 2020 Terminal 2 international flight facility Completed in December 2019 Terminal 3 extension#101. Review of Consolidated Financial Results for FY19 (6) Impact of COVID-19 O Changes in passenger volume (YoY comparison %) FY19 (Results) Airport 1Q 2Q 3Q 4Q Changes in months of 4Q January February March Haneda Domestic 0.2 0.6 -5.0 -26.2 -3.0 -8.5 -60.6 Haneda - 4.5 1.7 2.1 -37.7 0.1 -27.1 -80.5 International Total Haneda 1.1 0.8 -3.5 -28.7 -2.4 -12.5 -64.8 O Impact of COVID-19 on financial results Negative effect on operating revenues: Approx. 21 billion yen Negative effect on operating income: Approx. 7 billion yen Factors of negative effects: . Decline in facility user charges revenue, • Decline in merchandise sales, etc. Narita 3.9 1.8 3.7 -29.8 7.2 -18.9 -73.4 • Kansai 11.3 27.3 0.6 -46.1 2.2 -45.9 -89.3 Chubu Centrair 20.2 11.7 14.7 -37.6 20.4 -34.4 -89.0 ○ Circumstances Developments in the society January - Jan. 14 The first infected person in Japan confirmed - Jan. 31 WHO declares a global health emergency February March April - Feb. 25 The Japanese government announces its basic policy on measures; the cancellation of large events encouraged; elementary, junior high, and high schools requested to close Mar. 11 WHO declares a pandemic - Mar. 31 The 2020 Tokyo Olympics and Paralympics postponed - Apr. 7 The Japanese government declares a state of emergency (The scope of the state of emergency expanded to the whole of Japan on Apr. 16; the state of emergency lifted on May 25) Japan Airport Terminal Co., Ltd. Developments at Haneda Airport - Jan. 29 A government-chartered plane from Wuhan arrives at Haneda Airport (Thereafter, the transportation of people was repeated five times until Feb. 17) - Feb. 4 Cancellation of flights to China at Haneda international terminal starts - Mar. 6 Cancellation of Haneda domestic flights starts - Mar. 9 All Haneda international flights to China and Korea cancelled - 07 Apr. 11 T2 international flight facility closed Apr. 17 Some T1 north and T2 south facilities closed#112. Outlook for FY20 (1) Current Business Environment and Status of Passenger Volume Business Environment ➤ The government declared a state of emergency on April 7 and lifted it on May 25 > However, the government is continuing to encourage people to refrain from traveling from Tokyo to other prefectures even after May 26 ➤ Cancellation of domestic passenger flights continues even during June > As for international flights, cancellation of passenger flight operations continuing to be encouraged; the timing of resumption yet to be determined ➤ Some merchandise stores and restaurants inside the Haneda Airport terminals resumed operations after May 26 > Measures to stimulate domestic tourism demand are being considered by the Japan Tourism Agency ("Go To Campaign") Change in passenger volume Airport Airport (%) April Haneda -90.5 Haneda - Domestic Domestic Haneda -98.2 International Total Haneda -92.3 Haneda - International Narita -97.7 Kansai -99.7 Chubu Centrair -100.0 Japan Airport Terminal Co., Ltd. March Ave. 10% Started on Mar. 6 20% toward the end of the month Status of cancelled flights April Ave. 50% May 25% at the beginning of the month Ave. 80% Throughout the month 75% toward the end of the month Ave. 60% 35% at the beginning of the month 85% toward the end of the month Ave. over 90% 90% at the beginning of the month 95% toward the end of the month June 70% or more Until the middle of the month 90% or more 1 to 7 flight operations per Same level as May day • It is expected that passenger volume at Haneda Airport will gradually recover in the second quarter of the year onwards but will not recover to the level in the previous year. 08#122. Outlook for FY20 (2) Main Initiatives for the Current Term Business Operation ➤ Focusing on the maintenance and management services for terminal buildings while suspending nonessential facility investments ➤ Promotion of support for "FAST TRAVEL" and "One ID" Re-arrangement of stores that have been closed due to the impact of the Terminal 2 internationalization construction ➤ Continuing non-airport business (Kumamoto International Airport, Palau International Airport, Zone 1, etc.) Prevention of Spread of Infectious Disease Requesting that resident tenants close down during the state of emergency; providing airline companies and resident tenants with rent reductions or exemptions (Apr-Jun); the continuation of the measures is under consideration > Various actions in accordance with the guidelines for preventing the spread of COVID-19 in the aviation field ➤ Limiting operational zones in terminals, etc. (Example: closing the T2 international flight facility) Initiatives for Business Continuality Already concluded a commitment line agreement for 9 billion yen > Set a short-term line of credit for 20 billion yen with banks in April ➤ Preparing for financing a long-term loan in anticipation of the prolonged impact of sales decrease Initiatives for Cost Reduction ➤ Reduction of fixed expenses (directors' remuneration, employees' bonuses, etc.) ➤ Reduction of outsourcing cost and turning to insourcing > Utilization of the government's measures (applying for an employment adjustment subsidy) Japan Airport Terminal Co., Ltd. 09#132. Outlook for FY20 (3) Impact of Changes in Passenger Volume on Financial Results Impact on operating revenues Impact on operating expenses Items Facilities management Rent revenue Facility user charges revenue Other revenues Merchandise sales Reduction of revenue as a result of rent reductions or exemptions provided to airline companies, and merchandise stores and restaurants Reduction of revenue from passenger service facility charge (PSFC) Reduction of income from parking lots, sales from paid airport lounges, and income from hotel business High fixed rate of depreciation expenses and rent High fixed rate of depreciation expenses and rent High fixed rate of depreciation expenses and rent Sales at domestic terminal stores Sales at international terminal stores Other sales Food and beverage Reduction of merchandise sales due to a fall in domestic flight passenger volume Reduction of merchandise sales due to a fall in international flight passenger volume Reduction of wholesale sales due to a fall in passenger volume at Narita, Kansai, Chubu Centrair and other airports High volatility rate. Low inventory risk High volatility rate, though some merchandise has inventory risk High volatility rate, though some merchandise has inventory risk Sales from restaurants Sales from in-flight meals Reduction of restaurant sales due to a fall in Haneda Airport passenger volume Reduction of sales due to a fall in passenger volume at client airline companies High volatility rate, though there is a risk of loss due to discarding unsellable food High volatility rate, though there is a risk of loss due to discarding unsellable food Japan Airport Terminal Co., Ltd. 10#143. Progress under the Medium-Term Business Plan (1) Progress of Business Strategies "To Be a World Best Airport 2020" "Create business and earnings opportunities in pursuit of our 'Vision' for Haneda Airport and redevelop earnings base by staking out a competitive position" Three Core Strategies . Expand Business Domains that Leverage Strengths and Diversify Earnings Promotion of Urban Duty-Free Stores* Participation in the operations of Kumamoto Airport, Palau Airport, etc. • Promotion of business in Zone 1 at former Haneda site Pursue our 'Vision' for Haneda Airport Completion of Haneda internationalization construction • Promotion of FAST TRAVEL • Earning of SKYTRAX's 5 Star Airports rating for a sixth consecutive year (2) Progress of the Guidelines • Redevelop Earnings Base and Establish Competitive Position Promotion of borderless EC business • Opening of THE HANEDA HOUSE Launch of construction of new recycling building * Urban duty-free stores Operating revenues for FY19 6.6 billion yen Operating income -0.0 billion yen, Stores closed from Apr. 1 to Jun. 14, 2020 to prevent the spread of infection Indicator type Indicator FY20 (targets) FY19 (Results) FY20 Comprehensive ROA (EBITDA) 12% 7.5% Profitability Operating income ratio 8% 4.0% Stability Equity ratio Aim for stable levels as soon as possible 31.2% Operating income Over 25 billion yen Japan Airport Terminal Co., Ltd. 9.8 billion yen 11 The business environment has changed due to the impact of COVID-19, which led to a change in the initial preconditions.#154. Medium- to Long-Term Direction (1) Forecasts for Passenger Demand 1) Forecasts by International Air Transport Association (IATA) (Released on IATA website on May 13, 2020) IATA forecasts passenger demand will return to the 2019 level by: 2022 for domestic flights, and 2024 for international flights. * However, according to its forecasts in 2017, it expected that air transport demand in the Asia Pacific region would double in the next 20 years. Indexed to equal 100 in 2019 Global domestic and international RPKs, indexed 2019=100 130 120 228 28 26 110 100 50 40 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: IATA/Tourism Economics, Air Passenger Forecasts, April 2020 Domestic RPKs International RPKS 2) Forecasts for Haneda Airport • When it is taken into account that Haneda Airport is the main airport in the Tokyo metropolitan area in Japan and the schedule of flight departures and arrivals has always been full, it is expected that passenger demand will recover before 2024. The schedule of international flight departures and arrivals has been expanded by 50 flights per day, and as of February 2020, it was planned to transfer 23 flights from Narita Airport, as well as to launching new flights and adding some flights at Haneda Airport. As the government has included stimulation of domestic tourism demand and large-scale promotion overseas in the FY2020 Supplementary Budget as an emergency economic stimulus package initiative to deal with COVID-19, the development of measures to drive the recovery of air passenger demand is expected. Japan Airport Terminal Co., Ltd. 12#164. Medium- to Long-Term Direction (2) Review of the Operational Method for the Airport Terminal Business A more than 90% fall in international and domestic terminal users lasting for over several months is a situation that has never been experienced. ⇒ In the transition to the new normal after the COVID-19 situation has been resolved: • • Traveling by people will decrease as a result of the spread of teleworking The practice of social distancing and the support of noncontact practices will be required . ⚫ Recognizing the need to review the way the airport terminal business should be conducted with an out-of-the-box mindset Establish a system for sustainable business continuity in all kinds of difficult circumstances • Advance the consideration of the guidelines (goal indicators) in the current Medium-Term Business Plan as a part of reviewing new ways to conduct the airport terminal business Japan Airport Terminal Co., Ltd. 13#174. Medium- to Long-Term Direction (3) Initiative Details . Review of the Business Continuity Plan Develop a BCP including financial and human resources operations under the new normal • Create a mechanism that enables the business to continue even in conditions where passenger volume has fallen significantly Efficient utilization of personnel • Consider re-assignment of personnel according to passenger trends • Establish a work style using teleworking Utilization of robots • Increase efficiency of personnel by introducing disinfection robots, remote guidance robots, etc. •Strengthen the distributor services to other airports Establishment of absolute safety Expand the scope of investment to include biosecurity and cybersecurity measures, in addition to crime prevention and disaster prevention measures Strengthening of e-commerce, etc. • Expand the market to include users outside airports via on-line •Review the store operations plan; utilize cashless payments Response by capturing changes in the customer needs • Create new business opportunities by utilizing Haneda Airport as the field while appropriately responding to customer needs Japan Airport Terminal Co., Ltd. Strengthening of digital marketing 14#18Earnings Explanatory Meeting April 1, 2019 to March 31, 2020 (FY19) Supplementary Material 1. Details of Consolidated Financial Results for FY19 2. Other Information *This document has been translated from the Japanese original, for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Japan Airport Terminal Co., Ltd. https://www.tokyo-airport-bldg.co.jp/#191. Details of Consolidated Financial Results for FY19 (1) Changes in Passenger Volume (Haneda, Narita, Kansai and Chubu Centrair) (Thousand passengers) (Thousand passengers) 20,000 Haneda Airport - international flights 18,164 17,120 (-7.4%) 16,823 70,000 Haneda Airport - domestic flights 67,528 68,000 66,412 66,000 64,000 64,242 62,000 62,553 60,000 58,000 FY19 results -7.5% 56,000 (Compared to Oct. 2019 revised forecast -8.6%) 54,000 52,000 1H results + up 0.4% 50,000 2H-results-down-15:3% 48,000 2014 2015 (Thousand passengers) 38,000 18,000 62,463 15,642 16,000 13,434 14,000 (-7.5%) 12,000 10,000 8,000 6,000 FY19 results -7.4% (Compared to Oct. 2019 revised forecast -10.8%) 1H results + up 3.1% 2H results down 17.8% FY 2016 2017 2018 FY 2019 4,000 2014 2015 2016 2017 2018 2019 Narita Airport - international flights 35,870 36,000 33,479 34,000 32,410 31,055 32,000 FY19 results -5.2% 30,000 28,000 (Thousand passengers) 30,000 Kansai Airport - international flights FY19 results -3.7% (Compared to Oct. 2019 revised forecast - 15.2%) (-5.2%) 25,000 34,018 - 1H results + up 18.6% 2H results down 23.4% 19,151 20,000 17,275 (Compared to Oct. 2019 revised forecast -8.5%) 1H results + up 2.8% 2H results down 13.3% 26,000 FY 2014 2015 2016 2017 2018 2019 15,000 10,000 4,900 5,000 0 2014 Passenger volume; 16 2015 21,905 (-3.7%) 22,896 22,059 - Chubu Centrair Airport international flights FY19 results +1.6% (Compared to Oct. 2019 revised forecast - 11.4%) 5,234 5,564 6,100 6,197 (+1.6%) + 2016 1H results + up 15.7% 2H results down 12.5% + + 2017 2018 FY 2019 Figures published by Minister of Land, Infrastructure, Transport and Tourism, Narita International Airport Corporation, Kansai Airports Co., Ltd. and Central Japan International Airport Co., Ltd.#201. Details of Consolidated Financial Results for FY19 (2) Consolidated Financial Results for FY19 Consolidated financial results for the year (1H2H / full-year) 1st Half 2nd Half Full Year Items FY19 FY18 Millions of yen Operating revenues 135,270 Millions of yen 137,423 Change Millions of yen FY19 Millions of yen FY18 Millions of yen Change FY19 Ratio -2,153 114,485 136,195 Facilities management 42,645 40,661 1,984 40,296 41,389 Millions of yen -21,709 -1,092 Millions of yen % FY18 Millions of yen Ratio % Change Millions of yen Merchandise sales 82,234 86,560 -4,325 65,658 84,912 -19,253 Food and beverage 10,389 10,201 188 8,530 9,893 Cost of sales 63,222 66,729 -3,507 Cost of sales of merchandise (Ratio) Cost of sales of food and beverage 57,689 61,112 -3,423 51,403 46,599 65,400 60,082 -1,363 -13,996 -13,483 249,756 82,942 147,893 18,920 114,625 104,288 100.0 33.2 59.2 7.6 45.9 41.8 ( 70.2%) ( 70.6%) 5,532 5,616 ( -0.4P) -83 ( 71.0%) 4,803 ( 70.8%) 5,317 ( 0.2P) -513 (Ratio) ( 53.3%) ( 55.1%) (-1.8P) ( 56.3%) Gross profit 72,048 70,694 1,354 63,082 ( 53.7%) 70,795 ( 2.6P) -7,712 ( 70.5%) 10,336 (54.6%) 135,130 4.1 54.1 273,618 82,050 171,472 62.7 20,095 132,129 48.3 121,195 ( 70.7%) 10,934 ( 54.4%) 141,489 100.0 -23,862 30.0 891 -23,579 7.3 -1,174 -17,503 44.3 -16,906 ( -0.2P) 4.0 -597 51.7 ( 0.2P) -6,358 Selling, general and 60,891 57,732 3,159 64,346 61,275 3,071 125,238 50.1 119,007 43.5 6,230 administrative expenses Operating invome 11,156 12,961 -1,805 -1,263 Non-operating income/loss. -427 -1,200 Ordinary income 10,728 Extraordinary income/loss 137 11,761 23,162 772 -1,032 -23,024 -758 -2,022 -234 9,520 -902 8,617 -513 -10,783 9,892 4.0 143 -1,186 -0.5 -10,640 8,705 3.5 279 -96 0.0 22,481 8.2 -2,102 -0.8 20,379 22,648 -12,589 916 7.4 -11,673 8.3 -22,744 Net income attributable to owners of parent 5,945 28,202 -22,256 -933 4,801 -5,734 5,012 2.0 33,004 12.1 -27,991 * Ratio: Cost of sales of merchandise / Operating revenues of merchandise Ratio: Cost of sales of food and beverage / Operating revenues of food and beverage 17 Note: Figures shown are rounded down to the nearest million yen.#211. Details of Consolidated Financial Results for FY19 Consolidated financial results for the year (FY19 / FY18 for comparison / Revised forecast for comparison) Items FY19 (Results) Amount affected due FY18 (Results) Revised forecast (1) Change Ratio Ratio Operating revenues Millions of yen 249,756 100.0 to TIAT consolidation Millions of yen 24,279 Amount affected due to TIAT consolidation Rate of Change Difference Ratio Millions of yen 273,618 100.0 31,902 Millions of yen Millions of yen -23,862 % -8.7 Millions of yen 275,700 Amount affected due to TIAT consolidation Millions of yen Millions of yen 100.0 29,200 -25,943 Facilities management Merchandise sales 82,942 33.2 16,372 82,050 30.0 20,877 891 1.1 86,100 31.2 21,200 -3,157 147,893 59.2 7,723 171,472 62.7 10,832 -23,579 -13.8 169,100 61.3 7,800 -21,206 Food and beverage Cost of sales Cost of sales of merchandise (Ratio) Cost of sales of food and beverage 18,920 114,625 45.9 7.6 183 20,095 132,129 7.3 191 48.3 104,288 41.8 121,195 44.3 -1,174 -17,503 -16,906 -13.9 -5.8. -13.2 20,500 129,800 47.1 118,500 7.5 200 -1,579 -15,174 43.0 -14,211 ( 70.5%) ( 70.7%) (-0.2P) ( 70.1%) ( 0.4P) 10,336 4.1 10,934 4.0 -597 -5.5 11,300 4.1 -963 (Ratio) Gross profit ( 54.6%) 135,130 ( 54.4%) (0.2P) 54.1 141,489 51.7 -6,358 -4.5 ( 55.1%) 145,900 (-0.5P) 52.9 -10,769 Selling, general and 125,238 50.1 119,007 43.5 6,230 5.2 129,200 46.8 -3,961 administrative expenses Operating invome 9,892 4.0 4,992 22,481 8.2 9,388 -12,589 -56.0 16,700 6.1 7,500 -6,807 Non-operating income/loss -1,186 -0.5 -2,102 -0.8 916 -43.6 -1,600 -0.6 413 Ordinary income 8,705 3.5 2,402 20,379 7.4 4,300 Extraordinary income/loss -96 0.0 22,648 8.3 -11,673 -22,744 -57.3 15,100 5.5 4,900 -6,394 0.0 -400 -0.1 303 Net income attributable to owners of parent 5,012 2.0 730 33,004 12.1 21,342 -27,991 -84.8 8,300 3.0 1,500 -3,287 *1 Financial forecast announced in November 2019 *2 Ratio: Cost of sales of merchandise / Operating revenues of merchandise Ratio: Cost of sales of food and beverage / Operating revenues of food and beverage 18 Note: Figures shown are rounded down to the nearest million yen.#221. Details of Consolidated Financial Results for FY19 (3) Financial Results by Segment (i) Facilities management FY19 (Results) FY18 (Results) Revised forecast (Nov. 2019) Items Change Ratio Amount affected due to TIAT consolidation Ratio Amount affected due to TIAT consolidation Rate of Change Difference Ratio Amount affected due to TIAT consolidation Millions of yen % Millions of yen Millions of yen % Millions of yen Millions of yen % Millions of yen % Millions of yen Millions of yen Sales to external customers Rent revenues 18,259 20.6 3,970 17,454 19.9 3,933 805 4.6 18,700 20.4 4,200 -440 Facility user charges revenues 41,019 46.3 22,611 43,505 49.7 24,430 -2,486 -5.7 44,700 48.8 25,300 -3,680 Other revenues 23,662 26.7 -10,209 21,090 24.1 -7,485 2,572 12.2 22,700 24.8 -8,300 962 Subtotal 82,942 93.6 16,372 82,050 93.7 20,877 891 1.1 86,100 94.0 21,200 -3,157 Intersegment sales 5,697 6.4 4,021 5,533 6.3 3,742 164 3.0 5,500 6.0 3,800 197 Total 88,640 100.0 20,393 87,584 100.0 24,620 1,056 1.2 91,600 100.0 25,000 -2,959 Operating expenses Operating income 81,707 92.2 15,142 73,245 83.6 16,067 8,462 11.6 81,500 89.0 17,500 207 (Ratio) 6,932 7.8%) 7.8 5,251 14,339 16.4 8,552 16.4%) -7,406 -51.7 ( -8.6P) 10,100 11.0 7,500 11.0%) -3,167 (-3.2P) . Rent revenues: . ⚫ Facility user charges revenues: • · Other revenues: Increase in space leased to airline companies, etc. in domestic terminal Increase in space leased to airline companies, etc. in international terminal Decrease in fees for use of passenger facilities for international flights Decrease in fees for use of passenger facilities for domestic flights Increase in revenues from parking fees, paid airport lounges, advertising fees, etc. for domestic terminal Increase in subcontracted work revenues, etc. Increase in commissioned security management revenues 19 + 0.6 billion + 0.1 billion 1.7 billion - 0.7 billion +0.4 billion +1.6 billion +0.3 billion Note: Figures shown are rounded down to the nearest million yen.#231. Details of Consolidated Financial Results for FY19 (3) Financial Results by Segment (ii) Merchandise sales Items FY19 (Results) FY18 (Results) Revised forecast (Nov. 2019) Change Amount affected due Ratio Ratio to TIAT consolidation Amount affected due to TIAT consolidation Rate of Change Difference Ratio Amount affected due to TIAT consolidation Millions of yen Millions of yen % Millions of yen Millions of yen % Millions of yen % Millions of yen Millions of yen Millions of yen % Sales to external customers Domestic terminal stores 33,148 22.2 36,212 20.9 -3,063 -8.5 35,700 21.0 -2,551 International terminal stores 84,420 56.6 53,171 98,515 57.0 59,316 -14,094 -14.3 98,700 58.0 62,200 -14,279 Other sales Subtotal 30,323 20.3 147,893 99.1 -45,447 36,745 21.2 -48,484 -6,421 -17.5 34,700 20.4 -54,400 -4,376 7,723 171,472 99.1 10,832 -23,579 -13.8 169,100 99.4 7,800 -21,206 Intersegment sales 1,378 0.9 539 1,523 0.9 607 -144 -9.5 1,100 0.6 100 278 Total 149,272 100.0 8,263 172,996 100.0 11,440 -23,724 -13.7 170,200 100.0 7,900 -20,927 Operating expenses Operating income 138,448 92.7 6,472 157,235 90.9 8,377 -18,787 -11.9 154,600 90.8 5,400 -16,151 (Ratio) 10,823 7.3%) 7.3 1,790 15,760 9.1 (9.1%) 3,062 -4,936 -31.3 15,600 9.2 2,500 -4,776 (-1.8P) (9.2%) ( -1.9P) ⚫ Domestic terminal stores: • International terminal stores: Decrease in sales of directly managed stores at Haneda domestic terminal Decrease in sales of directly managed stores at Haneda international terminal Decrease in sales of directly managed stores at Narita Airport . Other sales: Decrease in sales of urban duty-free stores Decrease in wholesale sales to Narita Airport Decrease in wholesale sales to other regional airports 20 20 3.0 billion 6.3 billion 4.6 billion - 3.0 billion. 2.4 billion 3.8 billion Note: Figures shown are rounded down to the nearest million yen.#241. Details of Consolidated Financial Results for FY19 (3) Financial Results by Segment (iii) Food and beverage Items FY19 (Results) FY18 (Results) Revised forecast (Nov. 2019) Change Amount affected due Amount affected due Rate of Change Difference Ratio Ratio Ratio to TIAT consolidation to TIAT consolidation Amount affected due to TIAT consolidation Millions of yen Millions of yen % Millions of yen Millions of yen % Millions of yen % Millions of yen Millions of yen Millions of yen % Sales to external customers Sales from restaurants 11,514 53.4 2,915 12,514 55.4 2,977 -1,000 -8.0 12,700 55.4 3,100 -1,185 Sales from in-flight meals 6,543 30.4 6,764 29.9 -221 -3.3 7,000 30.6 -456 Other sales 863 4.0 -2,731 816 3.6 -2,786 47 5.8 800 3.5 -2,900 63 Subtotal 18,920 87.8 183 20,095 88.9 191 -1,174 -5.8 20,500 89.5 200 -1,579 Intersegment sales 2,641 12.2 0 2,518 11.1 0 122 4.9 2,400 10.5 241 Total 21,561 100.0 183 22,613 100.0 192 -1,052 -4.7 22,900 100.0 200 -1,338 Operating expenses 21,110 97.9 228 Operating income 451 2.1 27 21,733 96.1 224 -623 -2.9 22,200 96.9 300 -1,089 -44 880 3.9 -32 -428 -48.7 700 3.1 -100 -248 (Ratio) ( 2.1%) ( 3.9%) ( -1.8P) (3.1%) ( -1.0P) . • Sales from restaurants: Sales from in-flight meals: Decrease from closure of some domestic terminal restaurants Decrease in sales from decreased passenger volume of client airline, etc. - 0.7 billion - 0.2 billion Note: Figures shown are rounded down to the nearest million yen. 21#251. Details of Consolidated Financial Results for FY19 (4) Breakdown of Selling, General and Administrative Expenses Items FY19 (Results) FY18 (Results) Change Rate of change Ratio Ratio Millions of yen % Millions of yen % Millions of yen % Operating revenues 249,756 100.0 273,618 100.0 -23,862 -8.7 Selling, general and administrative 125,238 50.1 119,007 43.5 6,230 5.2 expenses Salaries and wages 12,816 5.1 12,072 4.4 743 6.2 Provision for employees' bonuses 1,628 0.7 1,620 0.6 7 0.5 Provision for directors' bonuses 186 0.1 269 0.1 -82 -30.8 Expenses for retirement benefits 904 0.4 955 0.4 -51 -5.4 Rent expenses 16,297 6.5 16,974 6.2 -676 -4.0 Business consignment expenses 27,576 11.0 30,333 11.1 -2,756 -9.1 Depreciation expenses 27,807 11.1 24,634 9.0 3,173 12.9 Other costs and expenses 38,021 15.2 32,147 11.7 5,873 18.3 22 Note: Figures shown are rounded down to the nearest million yen.#261. Details of Consolidated Financial Results for FY19 (5) Changes in Non-Operating Income/Expenses and Extraordinary Income/Loss Items FY19 (Results) FY18 (Results) Change Rate of Change Ratio Ratio Millions of yen % Millions of yen % Millions of yen % Operating revenues 249,756 100.0 273,618 100.0 -23,862 -8.7 Operating income 9,892 4.0 22,481 8.2 -12,589 -56.0 Non-operationg income 2,488 1.0 1,775 0.6 713 40.2 Interest income and 390 0.2 357 0.1 32 9.1 dividend Return on investment by 462 0.2 297 0.1 165 55.5 the equity method Others 1,635 0.6 1,119 0.4 515 46.0 Non-operationg expenses 3,675 1.5 3,877 1.4 -202 -5.2 Interest expenses 2,901 1.2 3,102 1.1 -201 -6.5 Miscellaneous expenses 773 0.3 774 0.3 -1 -0.1 Ordinary income/loss 8,705 3.5 20,379 7.4 -11,673 -57.3 Extraordinary income 376 0.2 25,960 9.5 -25,583 -98.5 Extraordinary loss 473 0.2 3,311 1.2 -2,838 -85.7 Income taxes 2,620 1.0 7,360 2.7 -4,740 -64.4 Net income attributable to 5,012 2.0 33,004 12.1 -27,991 -84.8 owner's of parent 23 Note: Figures shown are rounded down to the nearest million yen.#271. Details of Consolidated Financial Results for FY19 (6) Consolidated Balance Sheets Cash and deposit Account receivables Merchandise Others 15.5 billion 9.0 billion + 2.4 billion +12.4 billion Accounts payable (Millions of yen) Short-term borrowings - 6.5 billion + 0.9 billion Current portion of bonds with stock acquisition rights - 15.0 billion +17.0 billion Bonds Long-term loans payable Lease obligations Deferred tax liabilities +39.8 billion 0.3 billion + 1.9 billion 0.8 billion 0.8 billion Others 114,248 Current assets -9,568 Current liabilities -3,566 64,327 67,894 Tangible fixed assets (depreciable assets) 123,817 Buildings, etc. Accumulated depreciation +116.6 billion 22.3 billion Construction in progress Land 52.7 billion Others + 1.5 billion Intangible fixed assets - 0.8 billion Investments and other assets Fixed liabilities +39,766 255,136 215,370 Investment securities + 3.2 billion Deferred tax assets + 1.7 billion Net defined benefit assets 0.9 billion Fixed assets +46,277 407,114 360,837 Total assets 521,363 Total assets 484,654 FY19 FY18 24 201,390 FY18 Net assets +509 Retained earnings Accumulated other comprehensive income Non-controlling interest +1.4 billion - 2.2 billion +1.3 billion 201,899 Equity ratio FY2019 31.2% FY2018 33.7% ( -2.5P) FY19 Note: Figures shown are rounded down to the nearest million yen.#281. Details of Consolidated Financial Results for FY19 (7) Consolidated Statements of Cash Flows Items FY19 FY18 Change (Results) (Results) Millions of yen Millions of yen Millions of yen Cash flows from operating activites 20,222 34,288 -14,066 Income before income taxes and minority interests 8,609 43,027 -34,418 Depreciation and amortization 27,901 24,737 3,163 Gain on negative goodwill -20,126 20,126 Offsetting gains of assets and liabilities -5,626 5,626 Loss on step acquisitions 2,725 -2,725 Other current assets -12,080 -2,378 -9,701 Other current liabilities Other fixed liabilities Others Income and other taxes paid Cash flows from investing activites 3,394 2,681 713 181 -56 238 -405 -2,038 1,632 -7,378 -8,657 1,278 -57,334 -8,489 -48,844 Purchase of tangible fixed assets Purchase of intangible fixed assets Purchase of investment securities Proceeds from purchase of investments in subsidiaries resulting in change in scope of consolidation Others -49,895 -53,459 3,564 -1,781 -565 -1,215 -5,536 -792 -4,743 46,211 -46,211 -121 116 -238 Cash flows from financing activites 21,644 19,152 2,491 Short-term borrowings 300 -300 Long-term loans payable 789 22,885 -22,095 Proceeds from issuance of bonds 39,789 39,789 Redemption of convertible bonds -15,000 -15,000 Dividends payment -3,574 Others -360 -3,817 -214 243 -145 Effect of exchange rate change on cash and cash equivalents Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period -9 -8 -1 -15,477 44,943 -60,421 87,273 42,329 44,943 71,795 87,273 25 -15,477 Note: Figures shown are rounded down to the nearest million yen.#291. Details of Consolidated Financial Results for FY19 [Reference] Purchasing Trends of Non-Japanese Passengers by Nationality (1) (1) The number of departing non-Japanese visitors by airport (monthly average) FY18 FY19 Japan Haneda Narita No. of passenger volume (person) Composition ratio (%) No. of passenger Composition volume (person) ratio (%) No. of passenger volume (person) Composition ratio (%) 2,536,970 100.0 2,290,833 100.0 341,050 320,120 13.4 728,413 14.0 Kansai No. of passenger volume (person) 642,669 Other Composition ratio (%) 25.3 No. of passenger volume (person) Composition ratio (%) 824,838 32.5 30.1 616,475 26.9 664,628 29.0 28.7 689,609 Notes: Passenger data has been aggregated by the company using immigration statistics from the Ministry of Justice. FY18: Average for April 2018 to March 2019, FY19: Average for April 2019 to March 2020 (2) The number of departing non-Japanese visitors by airport and nationality (monthly average) ○ Volume ranking and change in departing passengers by nationality for FY19 Haneda Airport >> Narita Airport >>> Kansai Airport >> Composition ratio (%) No. of passenger volume (person) China (incl. Hong Kong) 98,719 Composition ratio (%) 30.8% Change (%) No. of passenger volume (person) South Korea 32,842 10.3% -9.6% China (incl. Hong Kong) -24.2% Taiwan 194,656 Composition ratio (%) 28.2% Change (%) No. of passenger volume (person) Change (%) 84,976 12.3% -4.8% China (incl. Hong Kong) -15.8% South Korea 294,891 47.8% 15.1% 90,460 14.7% -47.5% U.S.A. 33,569 10.5% 0.7% South Korea 71,453 10.4% -21.5% Taiwan 83,745 13.6% -3.7% Taiwan 23,747 7.4% No. of passenger Non-Japanese Japanese Total volume (person) 320,120 367,500 687,620 Composition ratio (%) 46.6% 53.4% 100.0% -9.8% U.S.A. Change (%) 63,399 9.2% -8.6% Thailand 23,454 3.8% 6.8% -6.1% Non-Japanese -9.2% Japanese -7.8% Total No. of passenger volume (person) 689,609 561,043 Composition ratio (%) 55.1% Change (%) -5.3% Non-Japanese No. of passenger volume (person) Composition Change (%) ratio (%) 616,475 67.5% -4.1% 44.9% -5.9% Japanese 296,590 32.5% -1.0% 1,250,652 100.0% -5.6% Total 913,065 100.0% -3.1% Number of departing non-Japanese passengers (No. of travelers: thousands) Figures in ( ) denote percent change compared to FY18 (Y on Y comparison) 140 China (incl. Hong Kong) 240 400 120 -South Korea -Taiwan 100 South-East Asia 350 200 (+0.1%) (+2.2%) 300 160 (+25.6%) --Europe/U.S.A. (+14.2%) 250 80 (+7.1%) Others 120 200 (-3.9%) 60 (-4.2%) 80 40 (-18.5%) 20 (-5.1%) 40 (+3.7%) (-10.9%) (-20.4%) (+5.6%) 150 100 (-36.5%) (+2.7%) (+10.5%) 50 (+26.7%) 0 0 0 (+18.4%) 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 Notes: Passenger data has been aggregated by the company using immigration statistics from the Ministry of Justice. Transit passengers are not included in passenger number. 26#301. Details of Consolidated Financial Results for FY19 [Reference] Purchasing Trends of Non-Japanese Passengers by Nationality (2) (3) Company duty-free store sales and number of departing passengers by airport and nationality (monthly average) <<Haneda>> (Net sales: millions of yen) Others 5,500 Taiwan 5,000 S. Korea Japan 4,500 (No. of travelers: thousands) Figures in ( ) are percent change 420 <<Narita >> 800 750 1,500 1,350 404 176 729 400 728 1,200 China 161 708 41 46 4,000 288 1,050 145 380 700 226 3,500 Japanese travelers 3,000 1,521 (Change) 187 1,493 (-1.9%) 900 367 (-9.2%) Foreign travelers (Change) 163 689 (-5.3%) 25 360 750 650 2,500 2,000 341 1,500 1,000 500 2,248 Foreign travelers (Change) 300 1,899 320 (-15.5%) 320 (-6.1%) 150 600 340 595 450 865 Japanese travelers (Change) 561 (-5.9%) 588 (-32.0%) 183 (-18.9%) 600 550 FY18 300 FY 19 FY18 FY 19 500 Notes: "Net sales" denote all store sales (excluding taxable stores). Haneda: all duty-free stores; Narita: directly managed stores and boutiques. Sales by nationality include estimates. (4) Main factors in the fluctuation of sales of duty-free shops and purchasing trends <<Both Haneda and Narita>> ➤ Annual operating revenues decreased significantly as a result of a fall in the purchasing passenger volume after February due to the impact of the novel coronavirus infection (COVID-19). ➤ Per-unit purchases decreased after February, although they grew steadily until then. <<Haneda» > Although the operating revenue from Chinese passengers was trending weakly in terms of both purchasing passenger volume and per-unit purchases until the third quarter of the year, overall operating revenues increased due to a growth in the Japanese purchasing passenger volume and per-unit purchases. ➤ The operating revenue from Korean passengers decreased by approximately 35%, which has less impact because its ratio to total operating revenues is low. <<Narita» ➤ Partly as a consequence of the temporary closure of stores due to renovation, operating revenues decreased significantly due to the impact of a fall in the purchasing passenger volume, though per-unit purchases increased moderately. <Duty-free Store Per-unit Purchasing> (Rounded down to the nearest hundred yen) FY19 Amount per customer Y on Y comparison Rate of Change change Haneda 8,900 0 0.0% Narita 12,900 0 0.0% 27#311. Details of Consolidated Financial Results for FY19 [Reference] Purchasing Trends of Non-Japanese Passengers by Nationality (3) (5) Changes in per-unit purchases and operating revenues from merchandise sales to Chinese passengers by airport (per-unit: yen) (sales millions of yen) (per-unit: yen) (sales millions of yen) Haneda Narita 25,000 20,000 15,000 10,000 5,000 8,000 25,000 7,000 20,000 6,000 5,000 15,000 4,000 10,000 3,000 2,000 5,000 1,000 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY16 FY17 FY18 FY19 merchandise sales per-unit purchases 3,000 2,500 2,000 1,500 1,000 500 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 10 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY16 FY17 FY18 FY19 merchandise sales per-unit purchases Notes: "merchandise sales" denote all store sales (excluding taxable stores). Haneda: all duty-free stores; Narita: directly managed stores and boutiques. 28#322. Other Information (1) Capital Expenditure and Depreciation Expenses (Results) Items FY15 FY16 FY17 Millions of yen Millions of yen Millions of yen FY18 Millions of yen FY19 Millions of yen Capital expenditure 8,379 6,853 27,885 57,559 Depreciation expenses 11,232 11,609 10,806 24,634 72,613 27,807 Note: Figures shown are rounded down to the nearest million yen. • Breakdown of Major Capital Expenditures • FY19 (Results) Building 2 internationalization construction Repair and upgrade of various equipment and facilities Building 2 PBB upgrade ¥27.0 billion ¥3.5 billion ¥2.9 billion Acquisition and improvement of training facilities Upgrade of crime prevention/disaster-readiness equipment ¥2.0 billion ¥1.9 billion Building 1 renovation (TIAT investment amount ¥1.4 billion ¥30.0 billion) Breakdown of main depreciation expenses FY15 Millions of yen FY16 Millions of yen FY17 Terminal 1 4,000 Terminal 2 4,400 4,400 4,100 Millions of yen 4,300 3,800 FY18 Millions of yen FY19 Millions of yen 4,700 5,400 P4 Parking 400 300 300 900 【Reference】 TIAT (non-consolidated) FY15 FY16 FY17 Millions of yen Millions of yen Millions of yen Capital expenditure Depreciation expenses 2,551 10,202 3,796 14,382 9,748 9,492 29 4,100 3,800 300 Note: Figures shown are rounded down to the nearest hundred million yen. FY18 Millions of yen 14,805 9,597 Note: Figures shown are rounded down to the nearest million yen.#332. Other Information (2) Changes in Operating Revenues/Ordinary Income/Cash Flows Billions of yen (left) Operating revenues (right) Cash flows (right) Ordinary income 3,200 2,800 2,400 2,000 started operation Narita Airport Terminal 2 Airport opened Kansai International 1,600 Haneda Airport Terminal 1 started operation (Sep. 1993) 1,200 800 00 400 ས Voluntary closure of Yamaichi Securities Y2K task Financial realignment 9-11 Terrorist Attack in the US Iraq war SARS outbreak Airport opened Chubu International Hikes in the price of crude oil Financial crisis being triggered by the US H1N1 influenza outbreak Great East Japan Earthquake Haneda Airport Terminal 2 started operation (Dec. 2004) The extended part of Haneda Airport Terminal 2 and Terminal 3 started operation (Oct. 2010) 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 30 90 05 06 90 10 07 08 80 09 90 The additional Terminal 3 extension started operation (Dec. 2019) Terminal 2 International facilities started operation (Mar. 2020) Subsidiary consolidation of TIAT (Apr. 2018) COVID-19 pandemic Billions of yen 450 400 350 Terminal 3 extension started operation (Mar. 2014) 325 300 302 250 196 200 181 157 171 150 166 151 146 139 203 133 136 128 118 100 107 49 49 36 83 50 31 57 10 11 12 13 13 14 15 16 17 18 19 0 (Cash flows Net income + Depreciation expenses - Dividends)#34April 1, 2019 to March 31, 2020 (FY19) Reference Material 1. Outline of Japan Airport Terminal Group 2. Summary of Tokyo International Airport (Haneda) * This document has been translated from the Japanese original, for reference purposes only. If there is any discrepancy between this translated document and the Japanese original, the original shall prevail. Japan Airport Terminal Co., Ltd. https://www.tokyo-airport-bldg.co.jp/#351. Outline of Japan Airport Terminal Group (1) The company's position at Haneda Airport (comparison with other major airports in Japan) Airport Hanada Airport (Tokyo International Airport) Narita International Airport Responsible and managed by national government Category Control facilities Airport facilities (Basic facilities) National government (Minister of Land, Infrastructure, Runways Taxiways Transport and Tourism) Chubu Centrair International Airport Kansai International Airport Itami Airport (Osaka International Airport) Responsible and managed by each airport comparny National government (Minister of Land, Infrastructure, Transport and Tourism) [Owner] New Kansai International Airport Company, Ltd. Aprons Passenger handling facilities (Passenger terminal buildings) Domestic terminal Japan Airport Terminal Co., Ltd. (JAT) International terminal Tokyo International Air Terminal Corp. (TIAT) Narita International Airport Corporation Shareholder composition Private corporations, etc. 100% National government: 100% Central Japan International Airport Co., Ltd. Outsourced [Operator] Kansai Airports Co., Ltd. Private corporations, etc.: 50% National government: 40% Local government: 10% [Owner] National government: 100% [Operator] Private corporations, etc.: 100% Source: Prepared by the company based on information on the websites of Ministry of Land, Infrastrucure, Transport and Tourism and the respective companies. (Reference) Basic position of passenger terminal building companies Operators of the airport facilities Runways, taxiways and aprons: Passenger and cargo handling facilities: Maintenance facilities: Installed and managed by national or local governments, or Narita, New Kansai, Central Japan airport companies. Constructed, owned, managed and operated by private corporations, third sector bodies, airport companies, etc. Constructed, owned, and managed by private corporations or airline companies Both JAT and TIAT have been designated as Airport Facilities Operators* by the Minister of Land, Infrastructure, Transport and Tourism pursuant to Article 15, Paragraph 1 of the Airport Act. Airport Facilities Operator is an enterprise that constructs or manages airport facilities (passenger or cargo handling facilities or aircraft refueling facilities necessary for an airport to perform its functions). ● Relationship with airline companies: JAT and TIAT lease facilities such as check-in counters and offices. ● Relationship with merchandise stores, restaurants, and service stores: JAT and TIAT operate their own stores, or lease store/office space to the tenants such as airline-related companies. Those companies need filings to operate sales at the airports. 32#361. Outline of Japan Airport Terminal Group (2) Business Details A company responsible for construction, maintenance and operation of Haneda Airport passenger terminals ■Terminal 1 ■Terminal 2 Terminal 2 ■Terminal 3 • • Terminal 1 Construction, management, and operation of terminal buildings Real estate leasing (offices, stores and other spaces for airline companies and airport-based businesses) Merchandise sales (duty-free stores, others) • Food and beverage services Passenger services Terminal 3 . Preparation/sales of in-flight meals • Management of parking lots 3333 ■ Operating Entity ⚫ Domestic passenger terminals: Japan Airport Terminal Co., Ltd. (JAT) . International passenger terminal: Tokyo International Air Terminal Corporation (TIAT) • The international passenger terminal is operated as a private finance initiative (PFI) project (2008-2038). • The terminal was built and is managed and operated by TIAT (consolidated subsidiary of JAT since 2018), established through investment with airline companies and other entities, centering on JAT. Offering high-quality services at domestic airports Narita, Kansai and Chubu, and at airports outside of Japan, leveraging expertise honed at Haneda Airport. Narita International Airport • Merchandise sales (duty-free stores, etc.) ⚫ Wholesale, commissioned management of duty-free stores • Food and beverage service • Travel accident insurance agency business • Preparation/sales of in-flight meals Kansai and Chubu Centrair International Airport • Merchandise sales (duty-free stores) • Wholesale • Commissioned management of duty-free stores (Kansai) 33 Domestic Airports throughout Japan Merchandise sales (Naha) Wholesale • Operation of Kumamoto Airport At overseas Airport •Merchandise sales at Chengdu Shuangliu International Airport • Operation of Palau International Airport • Operation of New Ulaanbaatar Airport#371. Outline of Japan Airport Terminal Group (3) Basic Philosophy and Management Policy Basic philosophy "Balancing Public Good and Business Success" Passenger terminal buildings serve as public infrastructure of enormous importance. Utilizing private-sector business approaches to properly achieve this highly public mission is our basic management philosophy. Management policy Establish absolute safety in passenger terminals • Operate passenger terminals for the benefit of customers (convenience, comfort and functionality) • Operate passenger terminals stably and efficiently ● Reinforce corporate structure and improve the combined competence of the Group companies Our Business Model Since Establishment ⚫ Since its establishment, Japan Airport Terminal has optimally leveraged private-sector knowledge and financing to build, manage and operate passenger terminal buildings, which have enormously important public value, as a purely private enterprise spanning nearly 60 years. • Based on the Japanese government's policies governing airports and airlines, Japan Airport Terminal is engaged in facilities installation, including expansion, the provision of appropriate services, and measures to ensure the safety and stability of passenger terminal buildings. • Japan Airline Terminal contributes to the development of the airline industry, guided by a consistent dedication to shared prosperity with airline companies. 34#381. Outline of Japan Airport Terminal Group (4) ESG Initiatives Point: Continuing to work on initiatives started at the time of founding based on the corporate philosophy, "Balancing Public Good and Business Success" - Pursuing to become the most highly rated airport in the world, or the world's best airport, based on the long-term vision established in the present medium-term management plan Category Environment • Social . Governance Main initiatives Energy saving measures (Use of LEDs for lighting equipment, introduction of hybrid vehicles) • Use of natural energy (Green power, solar power generation) Improvement of labor productivity through enhanced working environment Spread of diversity (female executives, hiring of foreign national employees, etc.) • Donation of money for school lunch to developing countries (TABLE FOR TWO) • Investment in disaster prevention and safety measures Verification of effectiveness evaluation of the board of directors Establishment of the nominating/remuneration committee Most recent initiatives Consideration of measures for reducing incinerated waste upon expanding a waste treatment plant • Dealing with the marine plastic debris problem (Changing the material used for straws and shopping bags, etc.) • Effort for transmitting art and culture of Japan and for regional revitalization (Business of Haneda Future Research Institute) Increasing interaction with local residents (Haneda area) Installing "water stop boards" • Installing "Scattering prevention films" Japan Public-Private Partnership Student Study Abroad Program Strong governance, strengthening of the board of directors Cybersecurity measures 35#391. Outline of Japan Airport Terminal Group (5) Company History Haneda Airport was re-launched as Japanese air gateway after being returned by the U.S. in 1952. However, on account of a lack of financial resources after the war, only the costs for paving the taxiway and apron were included in the national budget. Therefore, it was decided to build the terminal with private funds (cabinet approved), and in 1953 the Company was founded with the cooperation of major institutions (with capital 150 million yen), and the terminal was opened in May 1955. 1953 (July) 1955 (May) 1964 (April) (October) 1978 (May) 1990 1991 1993 Established with private sector capital of 150 million yen. The terminal building opened and launched operation. Separate domestic arrival terminal building completed in time with the Tokyo Olympic Games. Duty-free sales operations commenced. Commenced merchandise sales including duty-free articles, hotel reservation services and other operations with the opening of Narita International Airport. (February) Listed on second section of the Tokyo Stock Exchange. (September) Listed on first section of the Tokyo Stock Exchange. (September) Haneda Airport Terminal 1 (Big Bird) started operation. 1994 (September) 1998 (March) 2001 (February) 2002 (April) 2003 (November) 2004 (December) 2005 (February) 2006 (June) 2007 (February) (September) 2008 (April) 2009 (April) (October) 2010 (October) 2011 2013 (April) (November) 2014 (March) 2018 (April) (December) 2019 2020 (March) Launched commissioned operation of duty-free stores and wholesale of duty-free goods accompanying opening of the Kansai Airport. The provisional international terminal at Haneda Airport started operation. International charter flights commenced at Haneda Airport. Terminated periodic international flights from Haneda Airport (transfer of China Airlines and the EVA Airways to Narita). International charter flights between Haneda and Seoul (Gimpo) commenced. Terminal 2 at Haneda Airport started operation. Wholesale of duty-free goods commenced with the opening of Central Japan International Airport. Established the special purpose company (SPC) "Tokyo International Air Terminal Corporation" (TIAT). South Pier in Terminal 2 at Haneda Airport started operation. Terminal International charter flights between Haneda and Shanghai (Hongqiao Airport) commenced. International charter flights between Haneda and Hong Kong commenced (during specific hours). Designated as an Airport Facilities Operator under the revised Airport Act. International charter flights between Haneda and Beijing commenced. The extended part of Terminal 2, Haneda Airport started operation. The Passenger Terminal 3, Haneda Airport started operation (TIAT). Renewal of Terminal 1 building, Haneda Airport completed. The extended part of South Pier in Terminal 2 at Haneda Airport started operation. The Passenger Terminal 3 extension, Haneda Airport started operation (TIAT). Subsidiary consolidation of Tokyo International Air Terminal Corporation (TIAT). The additional Passenger Terminal 3 extension, Haneda Airport started operation (TIAT). The international flight facilities in Terminal 2, Haneda Airport started operation. Terminar Haneda Airport Terminal when opened Haneda Airport Terminal 1 Haneda Airport Terminal 2 36#401. Outline of Japan Airport Terminal Group (6) Group Companies Food and beverage operations Facilities management operations Total: 19 companies Food and beverage operations ■Tokyo Airport Restaurant Co., Ltd. As of April 1,2020 Merchandise sales operations 4 companies Restaurant business, light meal production and sales, paid waiting room management Cosmo Enterprise Co., Ltd. Preparation and loading of in-flight meals, production and sale of frozen food LANI KE AKUA PACIFIC, INC. Restaurant business ■KAIKAN KAIHATSU Co., Ltd. Restaurant business, management and operation of lodging, halls and meeting rooms 37 Facilities management operations Tokyo International Air Terminal Co., Ltd. 8 companies Management and operation of international passenger terminal building. ■BIG WING Co., Ltd. Advertising agency business, event planning and management Japan Airport Techno Co., Ltd. Installation, upkeep and management of passenger terminal facilities and environmental and sanitation management of facilities Haneda Airport Security Co., Ltd. Security services and parking lot service management ■Haneda Passenger Service Co., Ltd. Passenger services operations ■ Japan Airport Ground Handling Co., Ltd. Passenger handling services ■ Haneda Future Research Institute Inc. Further improvement of value in existing airport operation, development of new business model, etc. ■Sakura Shokai Co., Ltd. Airport cleaning center management and waste treatment Merchandise sales operations 7 companies Japan Duty Free Fa-So-La Isetan Mitsukoshi Co., Ltd. Development of airport duty-free stores (bonded stores) in urban areas International Trade Inc. Wholesale business and merchandise sales to Japanese airport retail stores and other clients ■ Japan Airport Logitem Co., Ltd. Merchandise transport, delivery and inspection Air BIC INC. Retail sales of home appliances ■Haneda Airport Enterprise Co., Ltd. Store operation business ■ Japan Airport Terminal Trading (Chengdu) Co., Ltd. Merchandise sales and wholesale business at Chengdu Shuangliu International Airport ■Hamashin Co., Ltd. Wholesale and retail sales of marine products#411. Outline of Japan Airport Terminal Group (7) Revenue Composition/Details by Segment, Composition of Sales Category Facilities management operations Merchandise sales operations Food and beverage operations Rent revenue Facility user charges revenue Others Stores at domestic terminal Stores at international terminal Others Restaurants Revenue details Office lease (fixed rent); store lease (fixed rent percentage commission) at Haneda domestic and international terminals Fees for use of passenger facilities (Haneda domestic and international flights: PSFC), international terminal PBB user charges, others Parking fee revenue, advertising revenue and sales from paid airport lounge at Haneda domestic and international terminals, Hotel business income, Revenue from subcontracted work Merchandise sales for stores at Haneda domestic terminal stores Merchandise sales for stores at Haneda international terminal stores; Merchandise sales from airport duty-free stores, etc. at Narita International Airport, Kansai International Airport and Chubu Centrair International Airport, urban duty-free store sales Wholesale sales to Narita International Airport, Kansai International Airport, and Chubu Centrair International Airport; Commissioned management revenues at Narita International Airport and Kansai International Airport Restraurant sales at Haneda Airport domestic and international terminal and Narita International Airport In-flight meals Production and sales of in-flight meals Others Expenses details Depreciation; water, heating, energy expenses; repairs expenses; lease fee (such as national property usage fee); taxes and public charges; cleaning expenses; outsourcing fees Lease fee (such as national property usage fee); taxes and public charges (fixed asset tax); outsourcing fees Cost of sales; supply expenses Cost of sales; supply expenses; percentage of business; agent service fee Cost of sales; agent service fee Food and beverage operations 7.7 % (+0.4p) Others 0.4 % (+0.1p) In-flight meals 2.6 % (+0.2p) Restaurants 4.7% (+0.1p) Food expenses (cost of sales for food and beverage); percentage of business; outsourcing costs Food expenses (cost of sales for food and beverage) Others 12.1 % (-1.4p) Income from catering airline lounges, Wholesale Food expenses (cost of sales for food of products such as frozen foods, box meals, etc. and beverage); outsourcing costs <<FY19 Results>> Facilities management operations 33.1 % (+3.1p) Rent revenue 7.3 % (+0.9p) Facility user charges revenue Stores at international terminal 33.8 % (-2.2p) Merchandise sales operations 59.2% (-3.5p) Others 16.4% (+0.5p) 9.4 % (+1.7p) Stores at domestic Terminal 13.3% (+0.1p) *Figures in ( ) denote percentage change from the end of March 2019 38#421. Outline of Japan Airport Terminal Group (8) Changes in Capital Investment Fisical Year Details Investment (at time of construction) 1955 Construction of former terminal building 1963 Major expansion and renovation (Measures for jet aircraft and the Olympics) 1970 1977 1978-1981 Construction for accommodating jumbo jets (domestic and international terminal buildings) Construction for disaster safety measures Construction to repurpose domestic terminal accompanying shift to international flights at Narita Airport Construction for domestic terminal redeployment Construction to build Terminal 1 building and remove old terminal building Terminal 1 building renovation (bus lounge expansion, new boarding stations) Construction to build provisional international terminal building Renovation of Terminal 1 building (barrier-free measures) 1984 1993 1997 1998 1999 2002 2002 2004 Expansion and renovation of provisional international terminal building Construction to build Terminal 2 building 2004 2005 2006 2007 Renovation of Terminal 1 building (including marketplace revitalization) Provisional international terminal building expansion and renovation Construction for expansion of Terminal 2 building (Second Stage of the Plan) Construction to build P4 simplified parking structure 2007~2008 Provisional international terminal building expansion and renovation Construction of Terminal 3 building and P5 parking [TIAT] 2008~2010 Terminal 2 building expansion (Third Stage of the Plan) Construction to convert P4 parking lot to multi-story parking lot ¥1.0 billion ¥3.5 billion ¥3.2 billion ¥8.0 billion ¥11.5 billion ¥15.0 billion ¥136.0 billion ¥2.0 billion ¥1.5 billion ¥3.4 billion ¥1.0 billion ¥67.0 billion ¥15.0 billion ¥0.6 billion ¥11.5 billion ¥2.0 billion 2011 2012 2014 2013 2017~2019 Terminal 1 building renovation (departure lobby, departure lounge, observation deck, etc.) Terminal 3 building expansion (expansion in 8 spots, lobby expansion, etc.) [TIAT] Terminal 2 building expansion (Fourth Stage of the Plan) Expansion in 3 spots 2018-2019 Terminal 2 building expansion (international flight facility, satellite, office space expansion, etc.) Terminal 3 building expansion (expansion in 2 spots, lobby expansion, etc.) [TIAT] Terminal 1 building renovation (basement, 1st floor arrival lobby interior modification, etc.) ¥3.6 billion ¥100.0 billion ¥19.0 billion ¥6.0 billion ¥7.0 billion ¥70.0 billion ¥7.6 billion ¥74.0 billion ¥21.0 billion ¥4.7 billion Total ¥595.1 billion 39#431. Outline of Japan Airport Terminal Group (9) Summary of Tokyo International Air Terminal Corporation 1. Company Name Tokyo International Air Terminal Corporation 2. Date Founded June 20, 2006 3. Headquarters Location 4. Capital 5. Businesses Haneda Airport, Ota-ku, Tokyo 13,265 million yen Maintenance and management of the terminal building in the international section of Tokyo International Airport 6. Representative Katsuji Doi, President (Former Vice President of Japan Airport Terminal Co., Ltd.) 7. Corporate Philosophy As the gateway to the nation's capital, Tokyo, we will endeavor to continue providing cutting-edge terminal facilities and services to customers from across the world and thus contribute to the development of the international aviation network. 40 8. Composition of Shareholders Japan Airport Terminal Co., Ltd. (51.00%) Japan Airlines Co., Ltd. (16.87%) ANA HOLDINGS INC. (16.87%) NARITA INTERNATIONAL AIRPORT CORPORATION (3.05%) TEPCO Energy Partner, Incorporated (2.37%) SECOM CO., LTD. (2.04%) Tokyo Gas Co., Ltd. (2.04%) Keikyu Corporation (1.36%) TOKYO MONORAIL CO., LTD. (1.36%) NTT DATA Corporation (1.02%) Development Bank of Japan Inc. (0.68%) Mizuho Bank, Ltd. (0.68%) MUFG Bank, Ltd. (0.68%)#442. Summary of Tokyo International Airport (Haneda) (1) Location Map ■Total area of airport 1,516 ha ■ Apron Total area/268 ha Spots/232 ■Runway . Runway A 3,000 mx60 m 1 • Runway B 2,500 mx60 m 2 . Runway C 3,360 mx60 m 3 • Runway D 2,500 mx60 m 3 Runway capacity Approx. 486,000 flights/year ■Terminal building . Terminal 1 7 5 Floor space/approx. 292,400 m Spots (stationary boarding bridge present)/24 locations • Terminal 2 Floor space/approx. 340,000 m Spots (stationary boarding bridge present)/23 locations . Terminal 2 satellite Floor space/approx. 11,600 m Spots (stationary boarding bridge present)/3 locations • Terminal 3 Floor space/approx. 256,000 m Spots (stationary boarding bridge present)/20 locations 7 8 2 1 14 11 12 10 9 5 8 13 ■ Parking lot 3333 3333 4 ⚫ P1 Capacity/2,350 vehicles 9 . • P2 Capacity/2,343 vehicles 10 ⚫ P3 Capacity/2,450 vehicles 11 ⚫ P4 Capacity/3,100 vehicles (includes 2 microbus spaces) 12 • P5 Capacity/approx. 3,000 vehicles 13 ■ Haneda airport wharf 14 41#452. Summary of Tokyo International Airport (Haneda) (2) Comparison of Passenger Volume Japan Airport Passenger Volume Ranking (2019 calendar year) Global Airport Passenger Volume Ranking (2019 calendar year bulletin) Annual Airport Code Annual (thousand people) Daily average (thousand people) Share (%) City/Airport Code (thousand people) 1 Haneda HND 85,326 (66,789) 233 25.8 (Tokyo International) 1 Atlanta ATL 110,531 2 Narita NRT 42,460 (7,642) 116 12.8 International 2 Beijing Capital International PEK 100,011 3 Kansai KIX 31,807 (6,981) 87 9.6 International 3 Los Angeles LAX 88,068 4 Fukuoka FUK 24,679 (18,281) 67 7.5 4 Dubai DXB 86,396 5 New Chitose CTS 24,599 (20,732) 67 7.4 5 Tokyo (Haneda) HND 85,505 6 Naha OKA 21,761 (18,080) 7 Osaka ITM 16,504 (16,504) International 8 Chubu Centrair NGO 13,460 (6,676) 36 SAST 59 6.6 6 Chicago (O'Hare) ORD 84,649 45 5.0 7 London (Heathrow) LHR 80,888 4.1 International 9 Kagoshima KOJ 6,072 (5,660) 16 1.8 8 Shanghai (Pudong) PVG 76,153 10 Sendai SDJ 3,855 (3,462) 10 1.2 9 Paris (Charles De Gaulle) CDG 76,150 International 78 other airports 60,312 (56,650) 18.2 10 Dallas/Fort Worth DFW 75,066 Figures in parentheses are airport passenger volume for domestic flights. Material: Aggregate statistics of airport usage within jurisdiction of East Japan Civil Aviation Bureau and West Japan Civil Aviation Bureau Source: ACI (Airports Council International) website 42#46Shikoku Chugoku Chubu City Code Flights/day Okayama OKJ 10 Hiroshima HIJ 17 Yamaguchi Ube UBJ 10 Tottori TTJ Yonago YGJ Izumo IZO | Iwakuni IWK Hagi Iwami IWJ 056552 Takamatsu TAK 13 Tokushima TKS 10 Matsuyama MYJ 12 Kochi KCZ 10 Fukuoka FUK 54 Kitakyushu KKJ 15 Saga HSG 5 Oita OIT 14 Kumamoto KMJ 18 Nagasaki NGS 14 Miyazaki KMI 19 Kagoshima KOJ 24 Amami Oshima ASJ 1 Okinawa (Naha) OKA 30 Miyako MMY 2 | Ishigaki ISG 4 Okinawa Kyushu 43 2. Summary of Tokyo International Airport (Haneda) (3) Domestic Destinations and Flights Domestic flights 48 routes Approx. 497 flights (departures)/day (excluding code share flights) Kinki City Code Flights/day ΤΟΥ Toyama 4 Noto NTQ 2 Komatsu KMQ 10 Nagoya (Chubu) NGO 3 Osaka (Itami) ITM 30 Osaka KIX 14 (Kansai Airport) Kobe UKB 10 Nanki Shirahama SHM 3 Kanto City Hachijojima HAC Code Flights/day 3 Tohoku Hokkaido City Code Flights/day Sapporo (Chitose) CTS 51 Wakkanai WKJ 1 Asahikawa AKJ 7 Obihiro OBO 7 Kushiro KUH 6 Mombetsu MBE 1 Memanbetsu MMB 5 Nakashibetsu SHB 1 Hakodate HKD 8 Aomori AOJ 6 Misawa Hachinohe MSJ Odate-Noshiro ONJ Akita AXT Yamagata GAJ Shonai SYO JAL JAPAN AIRLINES LSTARFLYER ANA (The data collected from the flight timetables as of April 2020) Solaseed Air JTA JAPAN TRANSOCEAN AIR SKY AIR DO SKYMARK AIRLINES 32924#472. Summary of Tokyo International Airport (Haneda) (4) International Destinations and Flights International flights to 53 cities, 58 routes Approx. 168 flights departing per day Country Canada City Vancouver Toronto Code YVR Slots/day 1 YYZ 1 Honolulu HNL 7 Kona KOA 1 Seattle SEA 2 Portland PDX 1 San Francisco SFO 3 San Jose SJC 1 Los Angeles LAX 7 Newark EWR 1 USA New York JFK 3 Washington IAD 2 Minneapolis MSP 1 Chicago ORD 3 Country/Region City Code Slots/day Detroit DTW 1 Seoul GMP 12 Dallas DFW 2 (Gimpo ) Korea Seoul (Incheon ) 1 Houston IAH 1 INC 2 Atlanta ATL 1 Country City Code Slots/day Dalian DLC 1 Vladivostok VVO 1 Country City Code Slots/day Beijing 9 Russia PEK 2 Moscow SVO 2 (Capital) 1 Philippines Manila MNL 2 Beijing 1 PKX 2 Hanoi HAN 1 Finland Helsinki HEL 1 (Daxing) Denmark Copenhagen CPH 1 Tianjin TSN 2 Vietnam Da Nang City DAD 1 1 4 Jinan TNA 1 Ho Chi Minh City SGN UK London LHR 1 1 3 China Qingdao TAO 1 Thailand Bangkok BKK France Paris CDG 5 4 2 Frankfurt FRA 1 Germany Munich MUC 2 Austria Vienna VIE 1 Shanghai (Honggjao) Shanghai (Pudong) Guangzhou PVG 4 Malaysia Kuala Lumpur KUL 2 5 7 Singapore Singapore SIN 3 SHA 4 2 Indonesia Jakarta CGK 1 CAN 4 Italy Rome FCO 1 India Delhi DEL 2 Shenzhen SZX 1 4 Country Turkey City Code Slots/day Hong Kong HKG Country City Code Slots/day 1 Istanbul IST 1 Sydney SYD 4 Taipei TSA 8 Qatar Doha DOH 1 6:00 23:00 (Songshan) Australia Melbourne MEL 1 Taiwan UAE Dubai DXB 1 23:00 6:00 Taipei (Taoyuan) ΤΡΕ 2 Brisbane BNE 1 44 (Plan for April according to the 2020 Summer Schedule)#482. Summary of Tokyo International Airport (Haneda) (5) International Rating of the Haneda Airport Passenger Terminal In an international rating by SKYTRAX, Haneda Airport: Ranked 1st in the "World's Cleanest Airports" category for 5th consecutive year Ranked 1st in the "World's Best Domestic Airports" category for 8th consecutive year Ranked 1st in the "World's Best PRM/Accessible Facilities" category for 2nd consecutive year ORLD AIRPOR SKYTRAX AWARDS 2020 5 STAR AIRPORT SKYTRAX Haneda Airport Passenger Terminals have taken out 1st place for the 5th consecutive year in the World's Cleanest Airport category of the 2020 World Airport Awards conducted by the UK company, SKYTRAX, as well as 1st place for the 8th consecutive year in the World's Best Domestic Airport category, and 1st place for the 2nd consecutive year in the PRM/Accessible Facilities category. Haneda's cleanliness and comfort has been recognized as best in the world in 5 of the last 7 years in the World's Cleanest Airport category. For the last 8 years, Haneda has been recognized as the World's Best Domestic Airport due to the convenience and comfort of its domestic facilities. Because of the emphasis on initiatives designed to assist elderly passengers, those with disabilities and other passengers who require assistance in moving about, Haneda Airport has taken out 1st place for the 2nd year in a row in the World's Best PRM/Accessible Facilities category. In the general World's Best Airports category, Haneda was awarded 2nd place for the 2nd year running. As a hub airport with a dynamic domestic and international route network, Haneda Airport plays an important role in Japan's drive to become an advanced tourism nation. Although steps are in place around the world to restrict movement because of the COVID-19 pandemic, our group companies look forward to a rapid end to the prevailing situation and remain committed to the safety of our customers and providing facilities and services that are second to none in convenience, comfort and functionality. 45#49Notes regarding projections Items such as plans, targets, policies, strategies, decisions, financial forecasts, future figures and monetary amounts in this presentation that is not historical data are projections of the future. These are based on management's projections, assumptions, evaluations, judgments, and conditions on information obtainable at the present time. Realizing these items entail uncertainty and various risks. This presentation material is not intended to solicit investments. We request you to make own decision regarding investments. Contact Japan Airport Terminal Co., Ltd., Investor Relations Division TEL: 03 (5757) 8409 FAX: 03 (5757) 8029 Email: [email protected]