Note: 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.

Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2022 (FY2021) [J-GAAP]

(Consolidated)

November 5, 2021

Company name:

Japan Airport Terminal Co., Ltd. ("the Company") Listed stock exchange: Tokyo, 1st Section

Code number:

9706

URL:https://www.tokyo-airport-bldg.co.jp/company/en/

Representative:

Nobuaki Yokota, President and COO

Contact:

Kazuhito Tanaka, Senior Managing Director

TEL 03-5757-8409

Scheduled date of filing securities report:

November 12, 2021

Scheduled date of commencing dividend payment:

Supplementary materials on financial results (yes/no)

Yes

Holding of quarterly investors' meeting (yes/no)

Yes (for institutional investors and financial analysts)

(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the First Six Months of FY2021 (April 1, 2021 to September 30, 2021)

(1) Consolidated Business Results (Cumulative)

(%: Change from the same period of the previous year)

Net income/(loss)

Operating revenues

Operating income/(loss)

Ordinary income/(loss)

attributable to owners of

the parent

First Six Months

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

of

FY2021

25,896

-

(21,825)

-

(24,305)

-

(14,478)

-

FY2020

22,293

-83.5

(32,266)

-

(30,506)

-

(22,879)

-

(Note) Comprehensive income/(loss): First six months of FY2021 ¥-21,611 million (-%)

First six months of FY2020 ¥-39,482 million (-%)

Net income/(loss)

Diluted net income

per share

per share

First Six Months

Yen

Yen

of

FY2021

(155.45)

-

FY2020

(281.67)

-

(Note) As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29 March 31, 2020) and relevant revised ASBJ regulations are adopted from the beginning of the first quarter of FY2021, the above consolidated financial results for the first six months of FY2021 are after the adoption of such accounting standards and the rate of change from the same period of the previous fiscal year is not stated.

(2) Consolidated Financial Position

Total assets

Net assets

Equity capital to

Net assets per share

total assets

Millions of yen

Millions of yen

%

Yen

As of September 30, 2021

491,829

173,932

33.5

1,767.22

As of March 31, 2021

519,193

195,544

34.3

1,910.83

(Reference) Equity capital:

As of September 30, 2021

¥164,592 million As of March 31, 2021

¥177,968 million

(Note) As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29 March 31, 2020) and relevant revised ASBJ regulations are adopted from the beginning of the first quarter of FY2021, the above consolidated financial results for the first six months of FY2021 are after the adoption of such accounting standards.

2. Dividends

Dividends per share

Q1-End

Q2-End

Q3-End

Year-End

Annual

Yen

Yen

Yen

Yen

Yen

FY2020

-

0.00

-

0.00

0.00

FY2021

-

0.00

FY2021 (Forecast)

-

-

-

(Note) 1. Revisions to the most recently announced dividends forecast for FY2021: None

2. We have decided to postpone the announcement of the outlook for dividend payment for the fiscal year ending March 31, 2022.

3. Forecast of Consolidated Financial Results for FY 2021 (April 1, 2021 to March 31, 2022)

(%: Change from the same period of the previous year)

Operating

Ordinary

Net income/(loss)

Net

Operating revenues

attributable to owners

income/(loss)

income/(loss)

income/(loss)

of the parent

per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Full-year

69,500

49.3

(35,100)

-

(37,700)

-

(21,300)

-

(228.70)

Note:

1. Revisions to the most recently announced forecast of consolidated financial results for FY2021: Yes

2. As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29 March 31, 2020) and relevant revised ASBJ regulations are adopted from the beginning of the first quarter of the fiscal year ending March 31, 2022, the above consolidated financial forecasts are after the adoption of such accounting standards. The rate of change from the previous fiscal year is the rate of change calculated on the assumption that the abovementioned accounting standards are adopted to the fiscal year ended March 31, 2021.

* Notes

  1. Significant changes in subsidiaries during the period under review (changes in specified subsidiaries involving changes in scope of consolidation): No

New: NoneExcluded: None

(2) Adoption of special accounting methods for preparation of quarterly consolidated financial statements: Yes

(Note) For details, please refer to page 12 of the appendix materials "2. Quarterly Consolidated Financial Statements and Notes

    1. Notes on Quarterly Consolidated Financial Statements: Adoption of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements".
  1. Changes in accounting policies, accounting estimates, and restatement of revisions
    1. Changes in accounting policies due to revisions of accounting standards, etc.: Yes
    2. Changes in accounting policies other than 1) above: None
    3. Changes in accounting estimates: None
    4. Restatement of revisions: None

(Note) For details, please refer to page 12 of the appendix materials "2. Quarterly Consolidated Financial Statements and Notes

    1. Notes on Quarterly Consolidated Financial Statements: Changes in Accounting Policies".
  1. Number of shares outstanding (common stock)
    1. Number of shares outstanding at the period-end (including treasury stock):

As of September 30, 2021

93,145,400 shares

As of March 31, 2021

93,145,400 shares

2)

Number of treasury stock at the period-end:

As of September 30, 2021

8,727 shares

As of March 31, 2021

8,595 shares

3)

Average number of shares outstanding (quarterly consolidated cumulative period):

Second quarter of FY2021

93,136,749 shares

Second quarter of FY2020

81,228,117 shares

  • This quarterly financial report is not subject to the quarterly review by certified public accountants or auditing firms.
  • Statements regarding the proper use of financial forecast and other special remarks
    Notes on the use of forward-looking statements
    The forecast of the business results reported herein was prepared based on information the Company had in its possession as of the time this report was prepared and on certain assumptions judged to be reasonable. The Company makes no guarantee that these figures will be achieved. Actual results may differ significantly from forecasts due to various factors.
    Supplementary materials on financial results and details of presentation at quarterly investors' meeting
    Quarterly investors' meeting is planned to be held on November 12, 2021 for financial analysts. Presentation materials used in the meeting will be promptly posted on the Company's website following the meeting.

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2022 (FY2021)

Contents of the Appendix Materials

1. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST SIX

MONTHS OF FY2021 (APRIL 1, 2021 TO SEPTEMBER 30, 2021)..............................................................................

- 2 -

(1) EXPLANATION OF OPERATING RESULTS ...................................................................................................

- 2 -

(2) EXPLANATION OF FINANCIAL POSITION ...................................................................................................

- 6 -

  1. EXPLANATION OF CONSOLIDATED FINANCIAL FORECASTS AND OTHER FORWARD-LOOKINGSTATEMENTS- 6

-

2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ......................................................

- 7 -

(1) QUARTERLY CONSOLIDATED BALANCE SHEETS.......................................................................................

- 7 -

  1. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME AND QUARTERLY CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME ....................................................................................................................

- 9 -

Quarterly Consolidated Statements of Income ...............................................................................................

- 9 -

Quarterly Consolidated Statements of Comprehensive Income ......................................................................

- 11 -

(3) NOTES ON QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS.........................................................

- 12 -

(NOTES ON THE PREMISE OF A GOING CONCERN) .......................................................................................

- 12 -

(NOTES ON A SIGNIFICANT CHANGE IN SHAREHOLDERS' EQUITY) ..............................................................

- 12 -

(ADOPTION OF SPECIAL ACCOUNTING METHODS FOR PREPARATION OF QUARTERLY CONSOLIDATED

FINANCIAL STATEMENTS) ...................................................................................................................

- 12 -

(CHANGES IN ACCOUNTING POLICIES) ........................................................................................................

- 12 -

(ADDITIONAL INFORMATION).......................................................................................................................

- 12 -

(SEGMENT INFORMATION) ...........................................................................................................................

- 13 -

- 1 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2022 (FY2021)

1. Qualitative Information on Consolidated Financial Results for the First Six Months of FY2021 (April 1, 2021 to September 30, 2021)

(1) Explanation of Operating Results

During the first six months of the fiscal year ending March 31, 2022, the Japanese economy continued to face a difficult situation due to the impact of the new corona virus infection ("COVID-19"). There continue to be signs of recovery, but the pace of recovery is slowing down. Looking ahead, it is expected that the recovery trend will continue, resulting from the effects of various policies and improving overseas economies, while thorough measures are taken to prevent the spread of the infection and vaccination is promoted. However, it is necessary to pay close attention to downside risks due to the impact from the stress on the supply chain. We also need to prudently monitor the impact of the spread of the infection in Japan and overseas in addition to fluctuations in the financial and capital markets, among other factors.

Under these economic conditions, the fourth declaration of a state of emergency in Tokyo in July caused by the rebound of COVID-19 cases and the spread of the Delta variant along with the extension of the declaration slowed down the recovery of demand for domestic flights in the airline industry. For international flights, the demand is staying at a low level due to the increase in COVID-19 cases globally. In the midst of all this, the number of passengers on domestic flights at Haneda Airport exceeded the level of the same period of the previous year and is steadily recovering, but it decreased by approximately 70% compared to the same period of 2019. The number of passengers on international flights at Haneda Airport also increased year-on-year primarily due to the visit of the Tokyo 2020 Olympic and Paralympic Games athletes and people involved, but remains at a low level, down more than 95% compared to the same period in 2019. The same situation also prevailed at Narita Airport and other international hub airports where we have business operations, with each airport experiencing an ongoing significant decline in international passenger volume.

Under these circumstances, the Japan Airport Terminal Group ("JAT Group") has taken measures at various locations within the terminal buildings in accordance with the "Guidelines for Prevention of the Spread of COVID-19 in the Aviation Field" (jointly prepared by the Scheduled Airlines Association of Japan and the All Japan Airport Terminal Association) to prevent the spread of COVID-19 and ensure the safety and security of airport users. In addition, we are working to expand the PCR testing facility at Haneda Airport by opening the Kinoshita Group's PCR testing centers at Terminals 1 and 2, cooperating with the Japanese government and the Tokyo Metropolitan Government in the distribution of testing kits and the performance of monitoring tests, providing space for pre-entry PCR testing at Terminal 3 and performing PCR tests for overseas travelers at the Toho University Haneda Airport Terminal 3 Clinic. Furthermore, the Company provided vaccination at workplace for employees working at Haneda Airport, including employees of the JAT Group, partner companies, etc., as well as tenants, and also provided vaccination sites for Japanese citizens living overseas. In addition, during the Tokyo 2020 Olympic and Paralympic Games, we took thorough measures concerning the visitors involved in the games to prevent the spread of infection, such as securing dedicated traffic lanes to ensure smooth entry and exit. As a result of these efforts, Haneda Airport became the first airport in Japan to receive the highest rating globally of 5-star in the "COVID-19 Airport Safety Rating", an evaluation conducted by SKYTRAX (UK) with respect to the measures against COVID-19 infection.

On the sales front, as passenger traffic is gradually recovering, we are working to capture demand by opening the Tokyo 2020 Official Shop and other facilities, as well as "Hokkaido Dosanko Plaza Haneda Airport", an official Hokkaido antenna shop with a dine-in space for light meal and beverage. In October, we held Japan's first art auction using a bonded warehouse at Haneda Airport Terminal 1, leveraging the Group's experience with respect to customs management. In the e-commerce business, the Group expanded its product lineup, including a new menu of in-flight meal sets, which has been well received on our directly-managed website and launched a new LINE mini-app version of our website, "HANEDA Shopping". Our efforts to diversify our earnings also include offering Terminal 2 international flight facilities as filming locations for movies and television dramas and the enhancement of our sales agency business for products such as "Radi-Cool", a radiant cooling material, and "C-FACE", a multilingual translation mask.

In terms of facilities, at domestic flights of Haneda Airport, we expanded the service coverage of "WHILL", a personal mobility vehicle equipped with autonomous driving technology, to all departure gates. At international flights, in July the "Face Express" system, which implements face recognition technology, was put into full-scale operation and dedicated facility for business jets, which is five times the size of the existing business jet facility, was also put into service. We are working to turn Haneda Airport into a smart airport in anticipation of the end of the pandemic through these efforts which function as enhanced infection prevention measures through contactless and non-face-to-face interaction in addition to improved convenience.

Furthermore, the New Ulaanbaatar International Airport in Mongolia, in which we participate, began its operations in July. This new airport is a new symbol of the bilateral cooperation between Japan and Mongolia. Through its operation, we will contribute to the sustainable development of the Mongolian economy and

- 2 -

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Second Quarter of the Fiscal Year Ending March 31, 2022 (FY2021)

society.

As a result of the above, with respect to the consolidated financial results for the first six months of the fiscal year ending March 31, 2022, operating revenues increased from the same period of the previous year to ¥25,896 million primarily due to the increase in facility user charges revenue and merchandise sales, in line with the gradual recovery of passenger volume on domestic and international flights. Despite the recovery in revenue and sustained cost reduction from the previous fiscal year, operating loss was ¥21,825 million, ordinary loss was ¥24,305 million, and quarterly net loss attributable to owners of the parent was ¥14,478 million.

As the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29 March 31, 2020) and relevant revised ASBJ regulations are adopted from the beginning of the first quarter of the fiscal year ending March 31, 2022, the above explanation does not state the rate of change (%) from the same period of the previous fiscal year. For details, please refer to "2. Quarterly Consolidated Financial Statements and Notes

  1. Notes on Quarterly Consolidated Financial Statements: Changes in Accounting Policies and Segment
    Information".

(Millions of yen)

Operating Results

First Six Months of FY2020

First Six Months of FY2021

Year-on-Year

(ended September 30, 2020)

(ended September 30, 2021)

(%)

Operating revenues

22,293

25,896

-

[Facilities Management]

16,448

18,825

-

[Merchandise Sales]

4,607

5,546

-

[Food and Beverage]

1,237

1,523

-

Operating income/(loss)

(32,266)

(21,825)

-

Ordinary income/(loss)

(30,506)

(24,305)

-

Quarterly net income/(loss)

(22,879)

(14,478)

-

attributable to owners of the parent

Haneda Airport's passenger terminals have been awarded the world's highest standard "5-star Airport" rating for six consecutive years in the SKYTRAX "Global Airport Rating", an international airport evaluation. In addition, in the customer survey evaluating international airports, we were awarded first place in the "Best Airports in Asia" as the first airport in Japan and second place globally for the third consecutive year in the "World's Best Airports", which comprehensively evaluated various aspects of international airports. Furthermore, we were awarded first place in the "World's Cleanest Airports" (for the sixth consecutive year), "World's Best Domestic Airports" (for the ninth consecutive year), and "World's Best PRM / Accessible Facilities" (for the third consecutive year). We will continue our company-wide efforts to improve our services to satisfy all customers using Haneda Airport.

In addition, as part of our efforts to address environmental issues, we have achieved the obligation to reduce the total amount of greenhouse gas emissions imposed on large-scale business establishments by the Tokyo Metropolitan Government based on the "Tokyo Cap and Trade Program" for both the first compliance period (FY2010-2014) and the second compliance period (FY2015-2019). Furthermore, with other businesses active in Haneda Airport, the JAT Group participates in the "Tokyo International Airport Eco-Airport Council" ("Council"), which was established under the chairmanship of the Director of Tokyo International Airport. We are striving to achieve the concrete action plans and targets set by the Council to reduce the impact of Haneda Airport on environment as a whole. In addition, in July 2021, Haneda Airport was selected by the Ministry of Land, Infrastructure, Transport and Tourism as one of the priority study airports to consider specific measures for the decarbonization of airports. The Council will compile the results of the study and as a member of the Council, we will continue to make every effort to achieve a "carbon-neutral society in 2050".

Although we need to pay close attention to the further spread of COVID-19 in the short-term, we expect a recovery in demand especially for domestic flights as vaccination in Japan progresses and since the declaration of a state of emergency and stricter measures to prevent the spread of COVID-19 were fully lifted in October. The situation for international flights remains difficult, but measures are taken to resume international traffic, such as the introduction of COVID-19 vaccination certificate and shortening of the quarantine period for vaccinated persons entering the country. The JAT Group will work to enhance the value of Haneda Airport, the air gateway to Japan and the Tokyo metropolitan area, by implementing measures to appropriately respond to passenger demand and by ensuring the safe and smooth entry, exit, and transportation of all customers.

The following is a breakdown of earnings / (loss) by segment. Note that the figures for operating income / (loss) are equivalent to those for segment income / (loss).

- 3 -

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Japan Airport Terminal Co. Ltd. published this content on 19 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 November 2021 08:22:06 UTC.