FY2018 Mid-year Consolidated Financial Results

Kansai Airports today announced its financial results for the six months ended September 30, 2018, posting operating revenues of 104.9 billion yen, operating income of 26.6 billion yen, ordinary income of 20.9 billion yen, and net profit1 of 11.4 billion yen. Despite the temporary closure of Kansai International Airport (KIX) due to Typhoon Jebi, operating revenues were up 6% compared to the same period last year, mainly driven by continued strong demand for air travel through August as well as the start of Kobe Airport operations this past April. Operating income, however, was down 2% mainly due to amortization of Kobe operating right from this April and an increase in depreciation of buildings and facilities refurbished in ITAMI renovation and other projects. Eventually, net profit fell 23% mainly attributable to the typhoon damages recorded in special loss. In the first half of 2018, Typhoon Jebi resulted in profit decrease and disaster loss, totaling 9.9 billion yen2.

Air Travel Demand

Despite the temporary shutdown of KIX due to Typhoon Jebi, aircraft movements at KIX in the first half of fiscal 2018 (April to September) were the second highest figure after the record high marked in the same period of the previous year. This was primarily driven by an increase in

international passenger flights to Korea, Hawaii and Southeast Asian nations. On the other hand, ITAMI saw aircraft movements slightly decrease year-on-year mainly due to flight cancellations caused by aircraft inspections. Kobe Airport, which joined us this fiscal year, performed well during the period. As the result, total aircraft movements—KIX, ITAMI and KOBE combined— reached 174,000. Total passenger traffic at KIX fell year over year partly attributable to the impact of the typhoon despite its international passenger traffic hitting a record high during the period. ITAMI and KOBE both marked an all-time high in passenger traffic partly due to aircraft upgauging at ITAMI and the start of new flights between KOBE and Sendai from July last year. The combined number of passengers going through KIX, ITAMI and KOBE was 23.72 million.