日本空港ビルデング（9706） – [Delayed]Medium Term Business Plan (FY22 – FY25) “To Be a World Best Airport 2025”

To all concerned Parties May 12, 2022 Company name: Japan Airport Terminal Co., Ltd. Representative: Nobuaki Yokota, President and COO (Code: 9706, Prime Market, Tokyo Stock Exchange) Inquiries: Kazuhito Tanaka, Senior Managing Director General Manager of Planning and Management Department Tel: 03-5757-8409 Medium Term Business Plan (FY22 – FY25) “To Be a World Best Airport 2025” Japan Airport Terminal Co., Ltd. hereby announces that it has formulated its medium-term business plan “To Be a World Best Airport 2025 – towards becoming one of the most advanced, human-and-eco-friendly airports by 2030”, as shown in the attached sheet. Medium-Term Business Plan (FY22–FY25)“To Be a World Best Airport 2025- towards becoming one of the most advanced, human-and-eco-friendly airports by 2030 -”(May 12, 2022)* 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/Medium-Term Business Plan (FY22-FY25)“To Be a World Best Airport 2025－towards becoming one of the most advanced,human-and-eco-friendly airports by 2030－”1 Review of the Previous Medium-Term Business Plan2 Changes in the Environment Surrounding Haneda Airport 5 Positioning of the Medium-Term Business Plan (FY22–FY25)3 The Goal of Our Group4 Our Goals for 20306 Direction of Strategy7 Sustainability8 Strategy Road Map9 Numerical Goals10 Investment Plan11 Estimated Number of TravelersP 2P 4P 5P 6P 7P 8P 13P 16P 17P 18P 19Japan Airport Terminal Co., Ltd.Introduction About Medium-Term Business Plan (FY22–FY25)Japan Airport Terminal Co., Ltd.1The Japan Airport Terminal Group (hereinafter “JAT Group”) has formulated its medium-term business plan “To Be a World Best Airport 2025 – towards becoming one of the most advanced, human-and-eco-friendly airports by 2030”, for the period from FY 2022 to 2025, in order to achieve its long-term vision “To Be a World Best Airport” which aims to provide the maximum satisfaction to all its customers and stakeholders. Under the previous medium-term business plan, which ended in FY2020, JAT Group promoted various measurements, including the construction of its facilities to expand the international terminals, in preparation for the Tokyo Olympics and Paralympics, as well as the enhancement of Haneda Airport’s functions (increasing international flights by 39,000). However, the global spread of COVID-19 has made an extensive impact on its business performances. The new four-year plan describes the sustainable growth of both JAT Group and society. The plan is based on its experience from COVID-19 pandemic (including drastic reviews of its business operations), considering a further increase of air passengers as indicated in the government’s target of attracting an annual 60 million inbound travelers by 2030. In line with this plan, JAT Group will strive to become a leader of the airport companies to realize its long-term vision, through taking on the challenges to develop the best operational model for Haneda Airport – working with all the business partners including the government and airlines, and making sure all its employees recognize their significant social roles. 1. Review of the Previous Medium-Term Business Plan(1) Review of important measures“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”Expanding business domains that leverage strengths anddiversifying earnings• Opening urban duty-free stores• Developing multiple Air BIC business stores• Participating in other airports’ businesses• Opening HI City • Developing a regional revitalization businessThree Strategic PillarsPursuing our ‘Vision’ for Haneda Airport• Expanding and developing the international terminal (T2, T3)• Making TIAT a consolidated subsidiary• Renovating the domestic terminal (T1)• Developing facilities exclusively for business jets• Earning SKYTRAX’s 5-Star Airports rating for a sixth • Introducing advanced technologies, including Fast Travel • Responding to universal design and barrier-free • Supporting the operation of Tokyo Olympics/Paralympicsconsecutive yearand robotsenvironment2021 (COVID-19 Pandemic)Redeveloping the earnings base and staking out a competitive position• Opening THE HANEDA HOUSE• Renovating stores• Renovating airport lounges• Constructing a new recycling building• Implementing the procurement cost reduction projectImplement a capital increaseLessons learned from the COVID-19 pandemic• Securing funds for the development of the terminals in• Strengthening the financial foundation to prepare for athe futureprolonged COVID-19• Terminal management pursuing flexibility and efficiency• Strengthening and ensuring cost management• Promoting the diversification of earnings●Following the restart of the functional strengthening of Haneda Airport initiated in March 2020, the quality and efficiency of bothContinuing issues for FY22hardware and software will be improved.and strengthening “earning power.”●Aim to shift away from an earnings structure that depends on airline demand to one that includes newly developed businesses●Secure personnel who can come up with new ideas and have ability to get things done in a changing business environment, aswell as the financial foundations that enable stable business continuity.Japan Airport Terminal Co., Ltd.21. Review of the Previous Medium-Term Business Plan(2) Status of achievement of the target indicators← TIAT: Equity-methodaffiliate →← TIAT: Consolidated subsidiary →PL (Billions of yen)2016(Results)2017 (Results)2018 (Results)2019 (Results)2020 (Results)2021 (Results)2020(Targets)Operating revenues204.9 225.9 273.6 249.7 52.5 57.0 300.0 Operating income9.4 13.4 22.4 9.8 -59.0 -41.2 25.0 Net income attributable to owners of parent6.8 11.7 33.0 5.0 -36.5 -25.2 13.0 Indicator type2016(Results)2017(Results)2018(Results)2019(Results)2020(Results)Target levelComprehensive9.7% 10.7%13.0%7.5%n/aROA (EBITDA): 12%Profitability4.6%5.9%8.2%4.0%n/aOperating margin: 8%Stability57.7%55.7%33.7%31.2%34.3%Equity ratio: Aim for stability as early as possibleGrowth potentialTOP 4TOP 2TOP 3TOP 2TOP 2SKYTRAX evaluation ranking: Top 3Shareholder return38.9%30.4%31.2%51.9%n/aPayout ratio: 30% or more* The effect of extraordinary income and losses was taken into account for FY18.・Made TIAT a consolidated subsidiary in 2018 and reviewed the target indicators.・The business environment changed drastically in 2020 due to the COVID-19 pandemic, and adaptation to the new normal became an issue.Japan Airport Terminal Co., Ltd.32. Changes in the Environment Surrounding Haneda AirportGovernment (Ministry of Land, Infrastructure, Transport and Tourism) MLIT ”Circumstances Surrounding Aviation and Future Issues and Initiatives” (March 2022) [Excerpt](1) Appropriate responses to the COVID-19 pandemic (border control measures Functional strengthening of airports in the Tokyo metropolitan area (as per MLIT’s website, and edited by Japan Airport Terminal)(1) Strengthening the international competitiveness of the Tokyo that reflect the infection situation)(2) Responses with a view to the recovery and expansion of demand after COVID-19 (functional strengthening of each airport, including airports in the Tokyo metropolitan area, and disaster prevention and reduction measures at the airport)metropolitan area ⇒ Revitalizing the Japanese economy(2) Acceptance of non-Japanese visitors to Japan ⇒ Increase in the number of foreign travelers and expansion of travel consumption(3) Regional vitalization throughout Japan ⇒ Growth potential of foreign countries affecting regions throughout Japan(3) Response to decarbonization in the aviation industry (promotion of (4) Strengthening airport functions (development of artificial land, railroads decarbonization at the airport) connecting to the airport, and aircraft parking apron)(4) Ensuring the safety and security of new aviation mobility (introduction of flying cars, and safe and smooth flights of drones, flying cars and piloted aircraft) (5) Providing safe and secure aviation services (promotion of aviation innovations) (5) Disaster prevention and reduction measures, etc. (strengthening the seismic capacity of runways, etc., development of bank protection, etc., and renovation of basic facilities, etc.)Business EnvironmentNew values and lifestyles resulting from the COVID-19 pandemicExcess of supply in the office market(decline in demand for offices due to teleworking, etc.)Airline Industry• Decrease in the number of passengers due to the COVID-19 pandemic• Promotion of structural reforms at airlines• The government’s target of 60 million non-Japanese visitors to JapanWorld population growth/Emerging countriesSocial Environment・Changes in the world situation• Return of the pandemic• Risks of disasters and earthquakes• Decarbonized society• Measures to prevent global warming• Heightened awareness of • Fall in the domestic sustainability, and requirements from the marketpopulation (declining birth rate and aging population)Japan Airport Terminal Co., Ltd.43. The Goal of Our GroupTo realize the long-term vision “To Be a World-Best Airport,” our Group has established a goal we are striving to achieve for 2030: become a “leading airport company.”Long-term vision“To Be a World-Best Airport”- To be the world’s most respected airport, pursuing the satisfaction of all stakeholders -Leading airport companyOur goals for2030As the airport representing Japan and the premier gateway to the country, we are creating a model recognized as the best in the world. – human-and-eco-friendly advanced airport 2030 -World-leading hospitalityA safe and secure airportPleasant journeys:stress-freeEco-airportAn airport terminal operator trusted by all stakeholdersCapital spending(Further internationalization)Environmental investmentPersonnel investment(Response to inclusiveness and diversity)Response to changesFlexibility[Basic philosophy] To foster harmony between the public and the GroupManagement strategyAchieve outcomes through fundamental review during the COVID-19 pandemicCapture future airline demandExpand the earnings base by developing businesses in new fieldsEarning powerSustainability managementObjectivizationPut strategies firmly into action and achieve outcomes during the period of the Medium-Term Business PlanAbility to get things doneGroup synergyJapan Airport Terminal Co., Ltd.54. Our Goals for 2030We will clarify the Group’s goals for 2030, define what we should do in the Medium-Term Business Plan (FY22–FY25), and realize a “human-and-eco-friendly advanced airport.”The Group’s vision for what a leading airport company needsOur Goals for 2030Sustainable growth of society and our GroupTo realize continual strengthening of functions and internationalization of Haneda AirportOperational excellence(Simultaneous pursuit of high quality and high efficiency)Evolution as a smart airport(Integration of technology innovation in the operation and management)Stable earnings and secure financial foundationsTeam of highly competent personnelMaximization of organizational strengthJapan Airport Terminal Co., Ltd.Airport terminal company trusted by all stakeholdersPermeate sustainability through management and business decisionsPromote businesses in accordance with the Sustainability Basic Policy and the established management systemAchieve the CO2 reduction target of 46%Continue to build operational excellenceContinuously improve quality and efficiency, including lessons learned from the COVID-19 pandemicEstablish new ways to utilize terminals in cooperation with airlinesUse digital marketing to help create new services and improve traveler satisfactionImprove productivity, such as controlling operations through DX and systemizationEstablish airport functions with a view to a future rise in airline demandComplete the expansion of T1 and T2 terminals (scheduled to be completed in 2025) by developing satellites and promoting operationsConnect East Japan Railway Company – Haneda Airport Access Line (scheduled to be completed in 2029) to T2 terminalResearch and review the development of terminals in cooperation with the review of artificial land development by the government* Review of connection between terminal T1 and T2 (improvement of a new international flight area)Establish stable revenue streams and financial foundationsIncorporate an increase in airline demand into a rise in revenues from merchandise sales, food and beverage, and service businessesGrow newly developed businesses to the extent that they contribute to the earnings baseRecover the equity ratio to 40% and maintain the ratingFurther lift organizational strength and governanceCultivate a corporate culture where people think by themselves and take calculated risks, and where members of the diverse workforce motivate each otherDevelopment of a Group management system that adapts to the business environmentEstablish governance that realizes higher transparency and equitability of management, and improve corporate value6•••••••••••••••Create a model recognized as the best for airportshuman-and-eco-friendly advanced airport World-leading hospitalityA safe and secure airportPleasant journeys: stress-free Eco-airport5. Positioning of the Medium-Term Business Plan (FY22–FY25)We have established a new Medium-Term Business Plan as a backcast by 2025 that reflects our goals for 2030, setting the years of 2025 and 2030 as milestones (*). These are important points from the business environment perspective.(*)■2030: The target year for 60 million overseas visitors to Japan and the government’s target of 15 trillion yen in consumption, the SDGs’ target year, and the decarbonization (CO2 reduction of 46%) target year■2025: The year when the number of passengers is expected to return to the pre-COVID-19 level (as per IATA)Medium-Term Business Plan 2020To Be a World-Best Airport 2020Medium-Term Business Plan (FY22–FY25)To Be a World-Best Airport 2025- towards becoming one of the most advanced, human-and-eco-friendly airports by 2030 -World-leading hospitalityA safe and secure airportPleasant journeys: stress-free Eco-airportIncrease capital• Secure funds to develop the terminals in the future• Strengthen the financial foundations in preparation for prolonged COVID-19Target in FY25Goal for FY30Grow profit higher than that before COVID-19, assuming recovery of passenger numbers (compared to the plan before COVID-19)Airport terminal company trusted by all stakeholdersLessons learned from the COVID-19 pandemic• Terminal management pursuing flexibility and efficiency• Strengthen and ensure cost controls• Promote earnings diversificationSustainable growth of society and our GroupEvolution as a smart airportFurther strengthen functions and internationalization of Haneda AirportEnsure stability of earnings and secure financial foundationsOperational excellenceRecruit a team of highly competent personnelMaximize organizational strengthExecute an investment for internationalization associated with the expansion of flight slots at HanedaUpgrade the operation of both domestic and international flightsMaking TIAT a consolidated subsidiary2016–20202016-2020202120212022–2025–2030COVID-19 pandemicRecovery of passenger numbers60 million overseas visitors to JapanSDGs’ target yearJapan Airport Terminal Co., Ltd.76. Direction of StrategyThe strategy of the Medium-Term Business Plan (FY22–FY25) is to promote “capturing future airline demand,” which is the driver of growth, as well as “establishment of a foundation for regrowth” and “expansion of the earnings base” to realize it. Also, to maximize the strategy’s efficiency, we will enhance the management base for “DX,” “organization, personnel, and governance,” and “financial strategy.” In addition, the Group will pursue sustainability by positioning it as a core of strategy promotion.［Reform and Innovation］ChangeEstablishing a foundation for regrowthAchieve outcomes through a fundamental review during the COVID-19 pandemicOptimize［Growth and Evolution］GrowGrowth of airport businessCapture future airline demandGrowth driveEnhance the earnings base［Facing Challenges］ExpandExpansion of earnings baseExpand earnings base by developing businesses in new fieldsCreate valuePromote sustainability・Sustained growth of our Group・Realization of a sustainable Pursue sustainabilitysocietyEnhance the management baseImprove and innovate by harnessing DX and new technologiesOrganization, personnel, and governanceFinancial strategyJapan Airport Terminal Co., Ltd.86. Direction of Strategy: Business Segment (1)Facilities managementOur goals for 2025Concrete measuresTo achieve both high quality and profitability, we are reviewing terminal operations and promoting the functional strength of airport infrastructure toward increasing the number of non-Japanese visitors to Japan in 2030, while striving to reduce maintenance and management costs and increase revenues such as rents. ChangeBased on the expense structure reviewed during the COVID-19 pandemic, we are operating the terminals efficiently.We are enhancing real estate management by reviewing leasing and rent structures to increase revenues.GrowWith a view to 60 million overseas visitors to Japan in 2030, we plan to strengthen functions while contributing to society.Direction of strategyExpandWe are aiming to improve performance at domestic airports as a whole by acquiring new technologies that are necessary for environmental measures and combating infectious diseases.Operations and management perspective■Operational excellence┗Improve services and labor-saving for guidance operations, etc. by leveraging technologies such as robots■Fundamental review and lessons learned in the COVID-19 pandemic┗Suppress rebound from operational cost reductions (restructuring of service-provision processes)┗Review border control measures in cooperation with relevant ministries and agencies as well as airlines in regard to new infectious diseases■Review terminal operations with a view to changes in airport usage, including off-airport check-inImproved revenue perspectiveFacility infrastructure perspective■Commercial renovations and measures ■Connection between T2 satellite and against vacant space┗Vitalize by providing new content┗Review relocations associated with expansion of facilities■Acquire new alliance partners for lounges and increase the number of users■Develop advertising media by leveraging flexible and efficient digital signagethe main building, which helps to optimize flows of passengers and improve on-time performance ■New construction of T1 satellite on the sidelines of the government’s apron upgrade■Review with a view to an increase in future airline demand┗Connection between the East Japan Railway Company Airport New Access Line and T2 ┗Connection between T1 and T2 (improvement of the international flight area)Sustainabilitydigital signage)■Planning and execution of the long-term repair program for terminal buildings, including environmental measures┗Decarbonization (further promoting a change of lighting to LED and replacement of air conditioners)┗Disaster response (completion of renovating specific ceilings and provision of timely information when a disaster strikes by introducing ■Enhance universal design, such as installing additional emergency flashbulbs for hearing-impaired persons■Reduce waste by promoting secondary use, etc. of materials for terminal operations (PBB, decorative accessories in buildings, etc.)Japan Airport Terminal Co., Ltd.96. Direction of Strategy: Business Segment (2)Merchandise sales/Food and beverageWhile reviewing the product mix, services, operations, cost rates, etc., we will uncover customer needs where consumption trends have changed by taking advantage of digital marketing, and aim for operating revenues from merchandise sales of 156 billion yen and operating revenues from food and beverage sales of 18 billion yen. ChangeReview operations and cost rates through research into new technologies and cultivating new business partners.GrowReview merchandise, services, etc. through digital marketing.Our goals for 2025Direction of strategyExpandExpand sales channels by EC business, etc. to earn revenues that are not passenger-dependent.Concrete measuresRevenue structure perspectiveSales expansion perspectiveNew earnings base perspective■Improve efficiency and diversification ■Refurbish stores in the T1 marketplace■Expand sales channels and merchandise of store operations┗Introduce self-checkout at stores with centralized cash registers┗Develop stores with showrooms that do not have inventory┗Research non-contact services(automated accounting [RFID], etc.)■Reduce cost rates by developing Haneda-original products and expanding sales share┗Expand the direct-from-the-farm business in collaboration with local regions (Complex stores consisting of merchandise sales, food and beverage, and services)■Introduce top-brand merchandise in the T3 duty-free shop┗Differentiate by developing original products ┗Develop T2 duty-free stores by leveraging virtual technology■Develop ethical products due to growing demand■Strengthen one-to-one marketing to airport by leveraging EC┗Develop Click&Collect by utilizing the airport site┗Develop new channels of cross-border EC┗Improve use of duty-free reservation site in collaboration with operators related to international flight passengers(Strengthen “customer transfer” by utilizing QR codes)■Develop “retail-tainment” that provides experience valueusersSustainability■Develop and improve ethical products (develop upcycling products, fair-trade products, and locally produced products, etc.)■Changes in materials of shopping bags and charging fees■Reduce merchandise waste disposal (outlet sales, measures against food loss, etc.)Operating revenue target:Merchandise sales188.0193.0(Billions of yen)156.0Food and beverage20.0(Billions of yen)21.018.0Japan Airport Terminal Co., Ltd.Previous Medium-.Term Business Plan target(FY2020)FY2025.New revenue .recognition accounting standard10Previous Medium-.Term Business Plan target(FY2020)FY2025.New revenue .recognition accounting standard6. Direction of Strategy: New Initiatives New business/Expertise businessOur goals for 2025Direction of strategyThese businesses are expected to part of the earnings base in 2030. By utilizing Haneda’s value and networks, and airport operational expertise, and through acquiring management resources we currently do not have, we aim to generate operating revenues of 10 billion yen in 2025.GrowAim to increase revenues by developing new businesses that take advantage of Haneda’s value and focusing on existing expertise in airport operations.ExpandAim to acquire new technologies and expertise, leading to the creation of new businesses.Concrete measuresPerspective of utilizing Haneda’s valuePerspective of utilizing know-how■Further strengthen EC business (Refer ■Develop business by taking advantage of to the previous page for details)■Create customer-attracting businesses by leveraging Haneda’s site and networks, including art auctions in a bonded area and revitalizing local regions■Strengthen cooperation with surrounding areas such as HICity and acquire earnings opportunities■Develop and improve services for business jet users, including duty-free merchandise salesHaneda’s uniqueness and actual performance┗Agency business for Radi-Cool robots┗External sales of in-flight meals, cleaning technologies, etc.(Further operationalizing the Group’s expertise)┗Airport operation consulting┗Development of duty-free business, etc. by participating business operators at the airportPerspective of creating new management resources■Conduct aggressive R&D and introduce new technologies that increase passenger convenience, and expand these outside the airport■Research on next-generation mobility■Research and development of new business seedsSustainabilityadvantage of Haneda’s site and networks■Solve social issues such as securing a labor force through developing new technologies including robots■Contribute to developing the surrounding areas and the Tokyo metropolitan area, as well as revitalizing local regions by taking Japan Airport Terminal Co., Ltd.11(Provided by Kyushu Kumamoto International Airport Co., Ltd.)6. Direction of Strategy: Management BaseDX StrategyFinancial StrategyManagement BaseOrganization, Personnel, and GovernanceLeverage technologies with a focus on digital and AIDigitally link information and dataEvolve into a smart airportAppoint external personnel and strengthen external relationshipsExpertise and diversity of personnelCorporate culture of “Think by oneself and take on challenges”■Clarification of DX strategy┗Conduct digital marketing┗Develop sales channels┗Improve the quality of security, services, etc.┗Promote improvement in operational efficiency in the administration department(Increase the degree of accuracy in real estate management and merchandise orders)■Promote aviation innovation■Research new forms of aviation mobility ■[Organization] ■[Personnel]Group structure according to strategySecure a diverse range of personnel┗Business-business and/or business-academia collaboration, and secondment to outside organizations┗Promote the empowerment of women┗Promote employment of people with disabilities■[Governance]Ensure the board of directors fulfills its functionsMake financial position healthier as early as possibleEstablish an advanced business evaluation and management systemAdequate investment in new business opportunities ■Establish a robust financial base with a view to investment for growth┗Develop a financial base, considering ratings┗Refinance hybrid loans, etc.■Review the diversification of funding with a view to environmental measures┗Invest in green bonds, etc. for CO2 reduction■Engage with investors in the prime market┗Review business evaluation and adequate resource allocation based on capital costWe will strengthen marketing endeavors, aiming for customer-centered terminal operations,and apply them to the strategy to provide top-quality hospitality. ■Promote business based on the Sustainability Basic PolicySustainability■Proactively disclose information to stakeholders■Install a sustainability promotion organization (committee, full-time body and working group [WG] by subject)┗Respond to the revised CGC and the TCFD recommendations, and review toward issuing an integrated reportJapan Airport Terminal Co., Ltd.127. Sustainability(1) Sustainability Basic PolicyUnder the basic philosophy “To foster harmony between the public and the Group,” we will help to realize a sustainable society through our business activities.Based on the newly developed Sustainability Basic Policy, the entire Group will promote sustainability in cooperation with our stakeholders.Basic philosophyThe Japan Airport Terminal Group, as a purely private company assuming construction, management and operation of highly public passenger terminals, is fully aware of its social role and management goals in order to “Foster harmony between the public and the Group.”Sustainability Basic PolicyThe Japan Airport Terminal Group, as a purely private company assuming construction, management and operation of highly public passenger terminals, has adopted a basic philosophy of “To foster harmony between the public and the Group.” To realize “To Be a World-Best Airport – To be the world’s most respected airport, pursuing the satisfaction of all stakeholders -,” we will promote sustainable business activities while contributing to the development of the socioeconomy under the Sustainability Basic Policy. Customers(1) Serving as an air gateway to Japan, we strive to operate customer-centered passenger terminals (convenience, comfortableness and functionality), continuously work at improving services and operations while actively utilizing digital technologies, and provide the best hospitality.Partners(2) Together with partners such as airline companies, tenants and subcontractors, and the national government, we promote development of safe and secure airports and open innovation toward mutual growth. Employees(3) We give consideration to physical and mental health and security of officers and employees, and strive to develop personnel and improve work environments so that they can work with a motivation while exercising a wide range of abilities they have in various fields associated with the airport. Local Communities(4) In partnership with surrounding communities, we not only contribute to the growth of the Tokyo metropolitan area, but also enable domestic air mobility in cooperation with airports throughout the country as the hub of the aviation network, and aim to co-exist and co-prosper with local communities throughout Japan.Shareholders/Investors(5) We endeavor to be transparent in disclosing information on a timely basis and increase corporate value from a long-term perspective, based on engagement with shareholders and investors.Global Environment(6) In moving toward a decarbonized society and/or a resource-circulation society, we aim to reduce the environmental burden associated with business activities through, for example, promoting measures against global warming and 3R, and realize sustainable airports in harmony with the global environment in cooperation with stakeholders.Common(7) Having ensured absolute safety, we properly manage risks that may pose a threat to business activities. Also, we routinely promote disaster prevention measures, etc. and business continuity management so that, even in emergencies, we can ensure safety and continue operating the passenger terminal, which is public infrastructure, without delays. (8) We comply with domestic and overseas laws, regulations and rules, and carry out business honestly and fairly while taking human rights into consideration.Japan Airport Terminal Co., Ltd.13Goals (visions) we are aiming for in 2030human-and-eco-friendly advanced airport 2030World-leading hospitalityA safe and secure airportPleasant journey: stress-free Eco-airportSocial image when the goals are achievedJapan where travelers want to visitSustainable growth of resilient aviation networkSociety where people can move safely in a comfortable wayCarbon neutralDecarbonized society7. Sustainability(2) System for promoting sustainability managementWe will establish a Sustainability Committee in July 2022, which will be chaired by the President and Representative Director. In addition, we are planning to establish a Sustainability Promotion Office as a dedicated body under direct control of the President. Under the umbrella of the Sustainability Committee, we will create theme-based working groups and implement initiatives on sustainability on company-wide.Sustainability Promotion SystemOutline of the Sustainability CommitteeBoard of DirectorsBoard of Auditors/Advisory Committee on Remunerations/Nominating Advisory CommitteeExecutive CommitteeSustainability CommitteeSecretariatSustainability Promotion Office(scheduled to be established)Information sharing and cooperationCompliance Promotion CommitteeJapan Airport Terminal Group Customer Satisfaction Promotion CouncilCorporate-wide developmentTheme-based working groups(energy saving/creation WG, new energy WG, resource circulation WG, etc.)Each business division/Group companyCommittee membersChairperson: President and Rep. DirectorMembers: Vice-president and all other officers (including executive officers)SecretariatSustainability Promotion OfficeFrequency of meetingsTwice a year or moreMatters for deliberation■Policy on sustainability■Capturing critical sustainability issues■Response to risks and opportunities■Establishment of plans and targets relating to sustainability and progress management (PDCA)■Stakeholder communication, etc.OthersScheduled to establish theme-based working groups (energy saving/creation WG, etc.)Beyond FY22, we intend to aggressively implement initiatives that strengthen the foundation for sustainability management, such as creating a medium-term sustainability plan based on a materiality analysis and promoting information disclosure in accordance with the TCFD recommendations.Japan Airport Terminal Co., Ltd.147. Sustainability(3) Sustainability initiativesWorld-leading hospitalityCS (Initiatives to improve customer satisfaction)A safe and secure airportInitiatives for disaster and crime prevention• Create a CS Philosophy and CS Services Basic Policy• Establish the Japan Airport Terminal Group Customer Satisfaction Promotion Council, and target management where the compliment/complaint rate and/or the customer satisfaction level are set as KPIs• Implement various CS measures (install additional charging stations, improve the Wi-Fi environment, introduce hand dryers with air-cleaning functions, etc.)• Win the world’s best 5-Star Airport from SKYTRAXPleasant journeys: stress-free Promote universal design• Install a 24-hour disaster prevention center• Develop a disaster response manual (including a manual for response to A2-BCP)• Periodically carry out joint training that includes each Group company and tenant• Stockpile equipment for disaster and crime prevention, promote participation in a basic critical-care course, introduce an emergency earthquake announcement system, establish voluntary standards for quality control and hygiene management for stores, etc.Eco-airportInitiatives for CO2 reduction• Respond to energy-saving measures for electricity use and air conditioning (change lighting • Install a large-scale solar power generation system, adopt “Radi-Cool,” which is a radiant cooling material that leverages advanced technologies, install plug-in stations for electric vehicles, etc. • Install facilities expecting a variety of customers (wide moving sidewalk, multi-function toilets, toilets for assistance dogs, “calm down, cool down space,” etc.)to LEDs, install geothermal heat pumps, etc.) • Promote acquisition of qualifications such as that for service care-fitters and sign language • Post on the website the names of stores that offer halal vegetarian foods and those that offer interpretersvegan productsLeveraging new technologiesWaste reduction and recycling• Create a mechanism to realize innovation (establish HANEDA ROBOTICS LAB, etc.)• Adopt advanced technologies (cleaning robots, electric wheelchairs, AI concierges, multilingual video interpretation service, smart translation masks, etc.) • Provide shopping bags that use renewable materials, eliminate plastic straws at directly managed stores, and recycle milk cartons disposed of at the lounge into toilet paper• Launch of “TABETE Rescue Deli” to reduce food loss• Reduce general waste by utilizing fully automated vanishing-type food waste disposersFoundation supporting value creation (Initiatives common to all perspectives)Development of personnel and engagementOccupational safety and health, and health-focused management• Implement rank-specific training, including languages and sign languages across the entire Group• Conduct interviews and follow-up for junior staff• Establish a new Work-Style Reforms Promotion Team Leader Council• Promote preventive measures against infectious diseases, and obtain certification for the AHA program from Airports Council International (ACI)• Collaborate with an occupational health physician, set up a mental health counseling desk, etc.Eco-airport・Initiatives to achieve the 46% CO2 reduction target by 2030┗Promote a change of lighting to LEDs and responses to decarbonization such as replacing air conditioners・Obtain T1 satellite ZEB Oriented・Reduce food loss and reduce waste disposal by reusing materials, etc.・Change materials used in shopping bags and charge fees for the bagsHospitalityPleasant journeys: stress-free FIS・Further initiatives to improve customer satisfaction (CS)┗Enable smooth guiding by installing additional digital signage and ┗Upgrade Wi-Fi equipment┗Install additional emergency flashbulbs for hearing-impaired personsJapan Airport Terminal Co., Ltd.15Safety and security・Respond fast to earthquake damage, such as repairing specific ceilings・Eliminate blind spots by increasing the number of ITV cameras (T2)・Introduce non-contact customer service (self-checkouts, automated payment, etc.)Create business opportunities・Develop and expand the range of ethical products┗Upcycling products, fair-trade products, locally produced products, etc.・Contribute to the development of surrounding areas and the Tokyo metropolitan area as well as to the revitalization of local regions by taking advantage of Haneda’s site and networksSolve social issues┗Business-business or business-academia collaboration, promote the empowerment of women and promote the employment of people with disabilities・Solve social issues such as securing the labor force through developing new technologies ・Diversity of personnelsuch as robots8. Strategy Road Map202220232024202520262027202820292030SustainabilityEstablish the Sustainability Promotion Office (Strengthen the foundations of sustainability management)Promote business based on the Sustainability Basic PolicyReduce CO2: Implement measures to achieve quantitative indicatorsCO2 reduction-46%(compared to 2013)Terminal 1Construct a new satellite (in conjunction with the government’s apron upgrade)Response to development, renovation, etc. of the apronTerminal 2Connect the satellite to the main buildingRespond to the Haneda Access Line(expected to start in 2029)Facilities managementMerchandise sales/Food and beveragePromote operational excellenceSuppress rebound from operational cost reductionsTake measures against vacant spaceRenovate commercial zonesImprove efficiency of and diversify store operationsDevelop Haneda-original products and expand sales shareOperational Excellence (Simultaneously pursue high efficiency and high quality)＋Further strengthen the functions of airport infrastructure and the internationalization to prepare for an increase in overseas visitors to Japan(Review with a view to an increase in future airline demand)Expand sales channels and merchandise by leveraging ECExpand sales channels and merchandise, including EC, cross-border EC and duty-free reservation sitesStrengthen one-to-one marketing to airport usersDevelop “retail-tainment” that provides experience valueNew business/Expertise businessUtilize Haneda’s value + utilize its expertise: Strengthen business developmentResearch and develop new business seedsContribute to profits as one of the earnings basesDX promotionImprove operational efficiency in the administration departmentPromote digital marketingLeverage technologies, with a focus on digital and AIDigitally link information and dataEvolve into a smart airportPromote innovation in the aviation industryGroup structure according to strategyEnsure expertise and diversity of personnelOrganization and personnelJapan Airport Terminal Co., Ltd.16Cultivate a corporate culture of “Think by oneself and take on challenges”Maximize organizational strengthForm a team of highly competent personnelNumber of overseas visitors to Japan:60 millionConsumption:15 trillion yenGovernment target9. Numerical GoalsIdea of numerical goals▶An entity creating a “model recognized as the best in the world”⇒Airport evaluation▶Strengthening “earning power” with a focus on sustainability management ⇒ProfitabilityEfficiency▶Flexible response to changes in a business environment of great uncertainty ⇒StabilityShareholder return▶A business entity that invests by taking advantage of opportunities for continuous growth⇒Investment plan■ FY25 Guidelines and the target profit and lossIndicator typeIndicators usedTarget levelPrevious standards: The previous revenue recognition accounting standards were applied to these figures.P&L for FY25Reference: Previous standards*Profitability (Comprehensive)Consolidated net income16 billion yen or moreOperating revenues280.0 billion yen320.0 billion yenProfitabilityCost reduction amount2.5 billion yen(Equivalent to 10% of the operating income target of 25 billion yen in the previous Medium-Term Business Plan)EfficiencyROA (EBITDA)12% or higherStabilityEquity ratioAim to recover to the level of 40%Shareholder returnPayout ratio30% or moreFacilities management106.0 billion yen106.0 billion yenMerchandise sales156.0 billion yen193.0 billion yen21.0 billion yenFood and beverageOperating incomeOrdinary income18.0 billion yen30.0 billion yen27.0 billion yen16.0 billion yenAirport evaluationSKYTRAX evaluation rankingWorld’s Best Airports TOP 3Net income* Number of passengers in FY25: Assuming that the number of passengers will recover to the level of that in FY20 (after the expansion of international flight facilities), when the number of passengers was not affected by COVID-19([Estimated number of passengers at Haneda Airport] Domestic flights: 69 million passengers, International flights: 25.6 million passengers)Japan Airport Terminal Co., Ltd.1710. Investment Plan■ Estimated investment amount during the plan period(Billions of yen)FY22FY23FY24FY25Plan period totalInvestment plan15.029.034.027.0105.0Facilities management93.0 billion yen・T1/T2 satellite improvement construction, facility replacement construction, etc.Merchandise sales/Food and beverage5.0 billion yen・Store renovation construction, system renewal, etc.New business/Expertise business3.0 billion yen・HANEDA INNOVATION CITY, EC business, robot business, etc.Management base and others4.0 billion yen・DX investment, etc.➤ Investment in improvement of the T1/T2 satelliteInvestment plan for satellite upgradeFY226.0FY2319.0FY2418.0(Billions of yen)FY25Plan period total10.053.0Construction of facilities related to CO2 reduction (Total construction costs from FY22 to FY25)・ Construction to convert lighting to LEDs: 3.0 billion yen ・ Construction to replace air conditioners: 5.0 billion yen * Planned investment amount: 3.5 billion yenJapan Airport Terminal Co., Ltd.1811. Estimated Number of Travelers■ Estimated number of travelers using Haneda Airport during the plan periodDomestic flightsInternational flightsWill recover to the level before the impact of COVID-19 (*) at the beginning of FY23Will recover to the level planned for after the expansion of flight slots within FY24* Before the impact of COVID-19: FY19 results (Apr.–Jan.) + Our forecasts (Feb.–Mar.)FY21FY22FY23FY21FY22FY23FY24FY25(10 thousands)(10 thousands)Number of passengers2,8385,8526,900Number of passengers834661,2102,3102,560Comparison with before impact of COVID-1941% 85% 100% Comparison with plan3% 18% 47% 90% 100% About 69 million passengers are estimated annually after FY23 as wellJapan Airport Terminal Co., Ltd.19100% 0%20%40%60%80%100%1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4QFY2021FY2022FY2023Comparison with before impact of COVID-19100% 0%20%40%60%80%100%1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4QFY2021FY2022FY2023FY2024FY2025Comparison with plan after the expansionNotes regarding projectionsItems 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.Japan Airport Terminal Co., Ltd., Investor Relations DivisionContactTEL: 03 (5757) 8409FAX: 03 (5757) 8029Email: ir@jat-co.com