Japan Airport Terminal : Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31,2022(FY2021)

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 Third Quarter of the Fiscal Year Ending March 31, 2022 (FY2021) [J-GAAP]

(Consolidated)

		February 2, 2022
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 [phone]
Scheduled date of filing securities report:	February 10, 2022
Scheduled date of commencing dividend payment:	－
Supplementary materials on financial results (yes/no)	No
Holding of quarterly investors' meeting (yes/no)	No

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

1. Consolidated Financial Results for the First Nine Months of FY2021 (April 1, 2021 to December 31, 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 Nine	Millions of yen		%		Millions of yen		%		Millions of yen	%	Millions of yen		%
Months of
FY2021	42,590		-		(30,892)		-		(33,240)	-	(19,326)		-
FY2020	39,720		-80.5		(44,025)		-		(41,377)	-	(26,478)		-
(Note) Comprehensive income/(loss): First nine months of FY2021 ¥-30,183 million (-%)	First nine months of FY2020 ¥-49,923 million (-%)
	Net income/(loss)		Diluted net income
	per share				per share
First Nine		Yen		Yen
Months of
FY2021	(207.51)			-
FY2020	(325.97)			-

(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 nine 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 December 31, 2021	504,661		165,360		31.6	1,714.75
As of March 31, 2021	519,193		195,544		34.3	1,910.83
(Reference) Equity capital:	As of December 31, 2021	¥159,706 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 nine 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: No

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: No

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 14 of the appendix materials "2. Quarterly Consolidated Financial Statements and Notes

1. 1. Notes on Quarterly Consolidated Financial Statements: Adoption of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements".
2. Changes in accounting policies, accounting estimates, and restatement of revisions
3. 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 14 of the appendix materials "2. Quarterly Consolidated Financial Statements and Notes

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

	As of December 31, 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 December 31, 2021	8,727 shares	As of March 31, 2021	8,595 shares
3)	Average number of shares outstanding (quarterly consolidated cumulative period):
	Third quarter of FY2021	93,136,724 shares	Third quarter of FY2020	81,228,083 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.

Japan Airport Terminal Co., Ltd. (9706) Financial Report for the Third 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 NINE
MONTHS OF FY2021 (APRIL 1, 2021 TO DECEMBER 31, 2021) ...............................................................................	- 2 -
(1) EXPLANATION OF OPERATING RESULTS .....................................................................................................	- 2 -
(2) EXPLANATION OF FINANCIAL POSITION .....................................................................................................	- 8 -

1. EXPLANATION OF CONSOLIDATED FINANCIAL FORECASTS AND OTHER FORWARD-LOOKINGSTATEMENTS- 8 -

2. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AND NOTES ......................................................	- 9 -
(1) QUARTERLY CONSOLIDATED BALANCE SHEETS.........................................................................................	- 9 -

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

COMPREHENSIVE INCOME ...................................................................................................................	- 11 -
Quarterly Consolidated Statements of Income .............................................................................................	- 11 -
Quarterly Consolidated Statements of Comprehensive Income ......................................................................	- 13 -
(3) NOTES ON QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS...........................................................	- 14 -
(NOTES ON THE PREMISE OF A GOING CONCERN) .........................................................................................	- 14 -
(NOTES ON A SIGNIFICANT CHANGE IN SHAREHOLDERS' EQUITY) ................................................................	- 14 -
(ADOPTION OF SPECIAL ACCOUNTING METHODS FOR PREPARATION OF QUARTERLY CONSOLIDATED FINANCIAL
STATEMENTS)......................................................................................................................................	- 14 -
(CHANGES IN ACCOUNTING POLICIES) ..........................................................................................................	- 14 -
(ADDITIONAL INFORMATION).........................................................................................................................	- 15 -
(SEGMENT INFORMATION) .............................................................................................................................	- 16 -

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

1. Qualitative Information on Consolidated Financial Results for the First Nine Months of FY2021 (April 1, 2021 to December 31, 2021)

(1) Explanation of Operating Results

During the first nine months of the fiscal year ending March 31, 2022, the Japanese economy is recently showing signs of recovery while difficult situation caused by the new corona virus infection ("COVID-19") is gradually improving. 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 social activities and economic activities are continued. However, it is necessary to pay close attention to downside risks due to the impact of COVID-19, restrictions on supply, and trends in raw material prices. We also need to prudently monitor the impact of fluctuations in the financial and capital markets, among other factors.

Under these economic conditions, in the airline industry, the pace of demand recovery picked up on domestic flights due to the decrease in the number of COVID-19 cases and the full lifting of the declaration of a state of emergency effective from October. The number of passengers on domestic flights at Haneda Airport during the first nine month of fiscal year ending March 31, 2022, recovered to about 40% of the same period of 2019, and to about 60% during the period from October to December. On the other hand, for international flights, restrictions on new entry of non-Japanese citizens and the number of people entering the country per day were eased in November, but entry restrictions were strengthened again due to the global spread of the Omicron variant, resulting in continuing sluggish demand. The number of passengers on international flights at Haneda Airport remains at a low level, down more than 95% compared to the same period in 2019.

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 to the provision of pre-entry PCR testing space for the Japanese government at Terminal 3, we have also established PCR testing facility for departing passengers at Terminals 1 and 2 (Kinoshita Group Co., Ltd.) and Terminal 3 (Toho University Haneda Airport Terminal 3 Clinic). 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, while passenger traffic is recovering especially on domestic flights, the "Haneda Chocolate Journey", a festival featuring the world's finest chocolates made by renowned chocolatiers from Japan and abroad, is being held at Terminal 1. Moreover, as part of our initiatives to promote regional revitalization, we opened "Hokkaido Dosanko Plaza Haneda Airport", an official Hokkaido antenna store with a dine-in space for light meal and beverage, and opened the redesigned "WAKURABA", a promotional café based on the concept of "sharing the charm of various regions of Japan through food" and making our efforts to capture demand. In addition, we are working to strengthen our profitability in segments other than the airline segment, and in October, we held Japan's first art auction using bonded warehouse space at Terminal 1, leveraging the JAT Group's experience with respect to customs management. In the e-commerce business, we expanded new menus for the popular in-flight meal set and other products, and launched a LINE mini-app, "HANEDA Shopping" to increase sales. Although it is temporary closed as a passenger area, we are offering Terminal 2 international flight facility as filming locations for movies and television drama. In December, the facility also hosted the "2nd Parkour Japan Championships", the first official event of the sport in Japan, exhibiting that Haneda Airport is not limited to the conventional notion of an airport where people get on and off planes, but continues to take on new challenges.

(Parkour is a new urban sport, approved by the International Gymnastics Federation as a new discipline in 2017, with the aim of inclusion in future Olympic Games.)

In terms of facilities, we have been taking initiatives including renovating specific ceilings (a type of ceiling that is specified by the Minister of Land, Infrastructure, Transport and Tourism as one that is likely to cause serious harm by falling off) in consideration of safety, and improving the public wireless LAN to improve services for our customers among other efforts. In addition, at domestic flights, we expanded the service coverage of "WHILL", a personal mobility vehicle equipped with autonomous driving technology, to all departure gates and the service is being used by many customers. At international flights, 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.

With respect to our efforts to address environmental issues, as Haneda Airport was selected by the

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

Ministry of Land, Infrastructure, Transport and Tourism as one of the priority study airports to consider specific measures for the decarbonization of airports in July 2021, the "Tokyo International Airport Eco-Airport Council" ("Council"), established under the chairmanship of the Director of Tokyo International Airport, will take the lead in putting together plans to reduce the impact of Haneda Airport on environment as a whole. 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, and we will continue to make every effort to achieve a "carbon-neutral society in 2050" as a member of the Council cooperating with other businesses active in Haneda Airport.

With respect to enhancing our governance structure, our Board of Directors resolved in December to change the Company to a company with Audit and Supervisory Committee, subject to approval at the next General Meeting of Shareholders. The Audit and Supervisory Committee, the majority of whose members are outside directors, will be responsible for auditing and supervising the legitimacy and appropriateness of business execution, thereby realizing more transparent management and building a structure that can more accurately meet the expectations of domestic and international stakeholders. In addition, by delegating the authority of the Board of Directors to make decisions on business execution to each director, we aim to further accelerate management decision-making and execution under the appropriate supervision of the Board of Directors.

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 evaluates 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.

As a result of the above, with respect to the consolidated financial results for the first nine months of the fiscal year ending March 31, 2022, operating revenues was ¥42,590 million primarily due to the increase in facility user charges revenue compared to the same period of the previous year, driven by 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 ¥30,892 million, ordinary loss was ¥33,240 million, and quarterly net loss attributable to owners of the parent was ¥19,326 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 Nine Months of FY2020	First Nine Months of FY2021	Year-on-Year
(ended December 31, 2020)	(ended December 31, 2021)	(%)

Operating revenues	39,720	42,590	-
[Facilities Management]	26,719	29,847	-
[Merchandise Sales]	10,575	9,971	-
[Food and Beverage]	2,426	2,771	-
Operating income/(loss)	(44,025)	(30,892)	-
Ordinary income/(loss)	(41,377)	(33,240)	-
Quarterly net income/(loss)	(26,478)	(19,326)	-
attributable to owners of the parent

In January, the impact on domestic air travel demand is starting to be observed, after the application of stricter measures to prevent the spread of COVID-19 to Tokyo and other cities in response to the increase in the number of new COVID-19 cases caused primarily by the community transmission of the Omicron variant. In addition, international flights continue to face a difficult situation as the measures to restrict entry into Japan due to the spread of the Omicron variant have been extended until the end of February. Under these circumstances, although the JAT Group has been working to improve the convenience, comfort, and functionality of the passenger terminals at Haneda Airport, due to the increase in fixed costs related to the passenger terminals and variable costs including operating expenses, we are planning to revise the price of

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