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Narita International Airport Today and Outlook for the Future

Hideki HayashidaSenior Vice President andExecutive Divisional Director, Marketing DivisionNarita International Airport Corporation (NAA)

TFWA Asia Pacific Exhibition & Conference Workshop A : Rediscovering Japan8 May, 2017

Table of Contents

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1. Narita Airport Today

2. Air Transport Demand in Asia

3. Becoming an Advanced Tourism Country

4. Further Function Enhancements at Narita Airport

5. Air Route Network Expansion Initiatives6. Creating Attractive Retail Spaces7. ʻOmotenashiʼ at Narita Airport

8. Anime Tourism

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1. Narita Airport Today

Overview of Narita Airport

Runway B (2,500m)

Terminal 2(Oneworld)

Terminal 3(LCCs)

Terminal 1 South(Star Alliance)

Terminal 1 North(SkyTeam)

Passenger Numbers (Actual in FY2016)No. of Pax : 39.6 million p.a.Int'l Pax : 32.4 million p.a.Dom. Pax : 7.2 million p.a.

Runway A (4,000m)

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Narita Airport - Continued Growth Since Opening

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0

50

100

150

200

250

0

500

1000

1500

2000

2500

3000

3500

4000

1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Pax (x 10,000)

On dom. flights (x 10,000)

Cargo (kilotonnes)

On intn'l flights (x 10,000)

A/c movements (Thous.)

Pax(x

10,000),Cargo

(Kilotonnes)

A/c

Movem

ents(Thous.)

2002(Interim) Runway B

commissioned

2003 Iraq warWHO warns of SARS

Sep 2001US terrorist attacks

2008Global economic crisis

2012Emergence of LCCs

Mar 2011Great East Japan Earthquake

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※ Pax numbers on individual routes are outbound in FY2015

List of Cities on Narita Airport's Network (Including transit points）

Narita's Route Network

※ No. of destinations cities is accurate as of April 2017

Total125cities (108 overseas and 17 in Japan)

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Ratio of International Services Operated by Each AllianceNarita

Incheon

Charles de GaulleJohn F. Kennedy

Hong Kong Changi

Intn'l: 75%Intn'l: 75% Dom: 25%Dom: 25% Intn'l: 90％Intn'l: 90％ Dom: 10％Dom: 10％

Intn'l: 98％Intn'l: 98％ Dom: 2％Dom: 2％ Intn'l: 100％Intn'l: 100％ Dom: 0％Dom: 0％ Intn'l: 100％Intn'l: 100％ Dom: 0％Dom: 0％

Intn'l: 42%Intn'l: 42% Dom: 58%Dom: 58%

7※Source: Compiled by NAA from Sabre MI/GDD schedule data for the period 7 to 13 November 2016

Star Alliance34%

Star Alliance28%

Other22%

oneworld8%

SkyTeam9%

Other55%

oneworld25%

SkyTeam19%

Star Alliance15%

oneworld22%

SkyTeam28%

Other35%

Star Alliance11%

oneworld5%

SkyTeam51%

Other33%

Star Alliance27%

oneworld3% SkyTeam

37%

Other33%

Star Alliance13%

oneworld46%

SkyTeam11%

Other29%

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Growing Ratio of LCC Flights

18%

5%

0% 0%3%

0%3%

0%

30%

38%

16%

9%

58%

16%

34%

11%

0%

20%

40%

60% '01 '13

Global LCC Market Share by Region

*Source: Ministry of Land, Infrastructure, Transport and Tourism(Compiled by the Basic Policy Committee of the Aviation Section of the Council of Transport Policy)

※Seat-kilometer based ratios for international and domestic routes

Ratio of LCC Services at Narita Airport

Passenger Ratio

Ratio of Passenger Flights

Operating LCCs

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

FY2014 FY2015 FY2016

25.1%27.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

FY2014 FY2015 FY2016

25.3%

20.6%

17.3%

22.3%

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Terminal 3

CasualMore accessible air travel

FunctionalSimple and easy to use

ExcitingRelaxation in a comfortable environment

Terminal Concepts

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5 Airlines in Terminal 3

Domestic airlines: Jetstar Japan, Spring Japan, Vanilla Air Overseas airlines: Jetstar, Jeju Air

(As of April 2017)

Terminal 3 Opened 8 April 2015

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2. Global Air Transport Demand

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Global Air Passenger Traffic Forecasts (2016 - 2035)

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(Units: Billion pax-kilometers)

1,603

2,762

1,598

3,299

1,994

594

2,082

347

919144 370

Europe Asia-Pacific

North America

Annual avg. +3.7%

Annual avg.+2.8%Annual avg. +5.9%

Annual avg. +6.5%

Middle East

Latin AmericaAfrica

Annual avg.+4.8% Annual avg. +5.0%

Growth in demand is particularly strong in the Asia-Pacific, Middle East and Latin America regions. The key to growth is finding ways of tapping into the growing demand in Asia.

Source: Compiled from Japan Aircraft Development Corporation and MLIT data

WorldwideAnnual avg. +4.7%

6,313

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3．Becoming an Advanced Tourism Country

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Spending by Visitors to Japan

2020: 40 million 60 million

8 trillion yen

Tourism Vision to Support the Future of Japan: Key Policies

New Government Goals for Becoming an AdvancedTourism Country

No. of Visitors to Japan

(About double 2015 figures) (About triple 2015 figures)

(More than double 2015 figures) (More than quadruple 2015 figures)

※Larger than the value of Japan's automobile exports（Value of automobile exports in FY2015: 12 trillion yen)

※

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2020:

2030:

2030: 15 trillion yen

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4．Further Function Enhancements at Narita Airport

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5．Air Route Network Expansion Initiatives

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Air Route Network Expansion Initiatives

Narita Hub Promotion Incentives（1 April 2015 to 31 March 2018 (3 years))

If both apply, landing charges are discounted

up to 100%

If both apply, landing charges are discounted

up to 100%

International network

expansion discount

Domestic network expansion discount

Additional domestic tonnage

discount

To developnew networks

To boost existing services

Int'l

Dom

Additional international

tonnage discount

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Narita Airport Marketing Incentives （1 April 2017 to 31 March 2019 (2 years))

Strengthen Marketing activities

by the airlines

To maintain and increasepassenger and cargo traffic at Narita Airport

With recent improvements in aircraft performance, airlines are rapidly reorganizing their routes and introducing direct flights between Asia and North America. This has resulted in an escalation in competition between airports to obtain routes for their networks.

Introducing the Narita Airport Marketing IncentivesBased on the number of passengers or volume of cargo, NAA will subsidize part

of the expenses for marketing activities (shop sales promotions, etc.)

To expandairport retail sales

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6．Creating Attractive Retail Spaces

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Airport Retail Revenue and Ratio of Non-Aeronautical Revenue

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Trends in Duty Free, Merchandise & Food and Beverage Sales at Narita Airport

Greater Ratio of Non-Aeronautical Revenue

Aeronautical Revenue45％

Non-aeronautical Revenue

55％

FY2015

674 701 765 854 768 701 705 599 679

844 972

1,169(+20%)

793 807 850 928

855 824 842

593

757

924

1,064

1,290

0

200

400

600

800

1,000

1,200

1,400

0

200

400

600

800

1,000

1,200

1,400 免税店・物販店・飲⾷店売上⾼

国際線外国⼈旅客数

Revenue(×JPY100million)

No. of pax(×10,000)1,429

FY2004

Aeronautical Revenue

66％

Non-aeronautical Revenue

34％

No. of international non-JJapanese pax

Duty free, merchandise andfood and beverage revenue

Creating Attractive Retail Spaces

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301 food & beverage, merchandising and duty free shops opened in total

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Terminal 1 Narita Dining Terrace

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Arrival Duty Free Shops

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* Images are illustrations.

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7．ʼOmotenashiʼ at Narita Airport

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Refurbishment Offers Clean, Comfortable Toilet Areas

Recipient of Toilet of the Year Award

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Narita TraveLounge （Pay Lounge）

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Kabuki Gate (Gallery & Shop)

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Interior Decorative Exhibitions Express the Traditions and Seasons of Japan

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Strategic Targets (by end of fiscal 2018） Usage of procedure automation services ⇒ 80% or higher Processing time ⇒ (Departure) Within 10 minutes*

* From the departure lobby to the duty-free area

Ongoing Moves to Shorten Processing Times

※The IATA Fast Lane program recommends the automation of passenger procedures (self-service) and the introduction of common-use facilities.

Illustration⑤ Improved dwell environment before boarding

④ More advanced, streamlined security screening ①

③ Bag drop kiosks①

② Self check in kiosks①

① Easy to understand information displays

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Promotion of Fast Travel

① Introduction of the worldʼs highest standard of free public wireless LAN(WiGig®)

② Installation of next-generation interactive digital signage with capacity for automatic responsesin severallanguages

③ Introduction of advanced autonomous mobile robots with anti-collision functions

⑤ Development of routeguide service using precision position finding technology

④ Development andintroduction of robotsthat assist in workactivities

Deployment of leading-edge ICT - Smart Airport

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Surprise and impress passengers

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8．Anime Tourism

Narita Airport is the Gateway~ The Starting Point for the Anime Pilgrimage ~ʻSilver Spoonʼ

(Obihiro City, Hokkaido)

Ishinomori Manga Museum(Ishimaki City, Miyagi)

ʻGIRLS und PANZERʼ(Oarai-machi, Ibaraki)

ʻNeon Genesis EVANGELIONʼ series(Hakone-machi, Kanagawa)

ʻHyoukaʼ(Takayama City, Gifu)

ʻHand Shakersʼ(Osaka City, Osaka)

Gosho AoyamaManga Factory

(Hokuei-cho, Tottori )

Yanase Takashi Memorial Anpanman Museum (Kami City, Kochi)

Niigata City Manga House(Niigata City, Niigata)

Kyoto International Manga Museum (Kyoto City, Kyoto)

Aruaru City(Kitakyushu City, Fukuoka)

ʻSummer Warsʼ(Ueda City, Nagano)

* Images are illustrations.

Narita Airport

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Your Name. LoveLive!Sunshine!! GIRLS und PANZER Hyouka

Bungo Stray Dogs Tamayura Neon Genesis EVANGELION Hand Shakers

* Images are illustrations.

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* Images are illustrations.

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* Images are illustrations.