Japan Airport Terminal : Second Quarter of FY22 Earnings Presentation Transcript (Nov 18, 2022)

Japan Airport Terminal Co., Ltd.

Q2 Financial Results Briefing for the Fiscal Year Ending March 2023

November 18, 2022

Event Summary

[Company Name]	Japan Airport Terminal Co., Ltd.
[Company ID]	9706-QCODE
[Event Language]	JPN
[Event Type]	Earnings Announcement
[Event Name]	Q2 Financial Results Briefing for the Fiscal Year Ending March 2023
[Fiscal Period]	FY2022 Q2
[Date]	November 18, 2022
[Number of Pages]	22
[Time]	14:00 - 14:27
	(Total: 27 minutes, Presentation: 27 minutes)
[Venue]	Dial-in
[Venue Size]
[Participants]
[Number of Speakers]	5
	Isao Takashiro	Chairman and CEO
	Nobuaki Yokota	President and COO
	Masatoshi Akahori	Executive Vice President
	Hiroshi Onishi	Executive Vice President
	Kazuhito Tanaka	Senior Managing Director

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Japan	050.5212.7790	North America	1.800.674.8375
Tollfree	0120.966.744	Email Support	[e-mail]

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Presentation

Moderator: Thank you very much for waiting. The meeting will now begin.

Thank you for taking time out of your busy schedules today to participate in this conference call with Japan Airport Terminal Co., Ltd. This conference call will be conducted using materials posted on our website. If you do not have the materials at hand, please visit our website.

Now, let me introduce today's attendees. Mr. Isao Takashiro, Chairman and CEO of Japan Airport Terminal Co., Ltd.

Takashiro: My name is Takashiro. Thank you.

Moderator: Mr. Nobuaki Yokota, President and COO.

Yokota: I am Yokota. Thank you.

Moderator: Mr. Masatoshi Akahori, Executive Vice President.

Akahori: My name is Akahori. Hello.

Moderator: Mr. Hiroshi Onishi, Executive Vice President.

Onishi: My name is Onishi. Hello.

Moderator: Mr. Kazuhito Tanaka, Senior Managing Director.

Tanaka: This is Tanaka. Hello.

Moderator: Now, President Yokota will give a 30-minute presentation, and then we will move on to your questions. The end time is scheduled to be 15:00.

We will now move on to the presentation. Please go ahead, President Yokota.

Yokota: I am Nobuaki Yokota, President and COO. Thank you very much for your continued understanding and support of our business operations.

Today, I would like to explain our consolidated financial results for H1 of the fiscal year ending March 31, 2023, our consolidated earnings forecast for the current fiscal year, the progress of our medium-term business plan, and our sustainability initiatives.

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Please turn to page two. First, let me explain the situation in H1.

The business environment continued to be severely affected by the COVID-19 crisis, and although a seventh wave was recorded during the summer, no restrictions were placed on domestic activities, and foreign entry restrictions were also eased in stages. On the other hand, soaring resource prices and a weakening yen have led to a gradual rise in domestic prices.

Against this backdrop, passenger volume at Haneda Airport increased significantly from the previous year, with domestic flights recovering to approximately 70% of the pre-COVID-19 level, but the pace of recovery slowed after the summer, falling short of the initial forecast by less than 10%. On the other hand, international flights increased significantly from the previous year due to the easing of entry restrictions and are in line with the initial forecast.

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Please turn to page three.

In this business environment, consolidated results for H1 of the fiscal year were higher than that of the previous year in all segments due to an increase in merchandise sales and income from facility usage fees.

In this environment, due to the impact of increased revenues and thorough cost control, the deficit from the previous year narrowed significantly, and the Company returned to profitability mainly in the domestic routes business, on a stand-alone basis.

Compared to the initial forecast, net sales fell short due to the impact of sluggish passenger growth on domestic routes since the summer, but operating income exceeded the forecast due to cost control.

As a result, as shown in the red box in the document, net sales were JPY43.6 billion, operating loss was JPY9.2 billion, ordinary loss was JPY9.7 billion, and net loss for the quarter was JPY3.3 billion.

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Japan	050.5212.7790	North America	1.800.674.8375
Tollfree	0120.966.744	Email Support	[e-mail]

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