Direct impact of the spread of COVID-19 on air travel demand and operating results

「In the water and wastewater operations business, water and wastewater usage increased as passenger numbers recovered following the reclassification of COVID-19 as a Class 5 disease and the full opening of Haneda Airport Garden in January 2023. The shared communications business also performed steadily. Revenue was ¥3,000 million, up 26.3% year on year, and operating profit was ¥334 million, up 215.0%.」

「In the water and wastewater operations business, passenger numbers recovered and water and wastewater usage was returning toward the pre-pandemic planned volume, partly due to the reclassification of COVID-19 as a Class 5 disease.」

「Domestic travel demand showed signs of recovery, supported by the government's nationwide travel assistance program. Despite the continued high level of COVID-19 cases, strict restrictions on activities were not imposed, and demand over the year-end and New Year period exceeded the previous year's level. Further progress in easing border controls and in various initiatives to support the economy is expected to lead to a recovery in air travel demand.」

「Since then, the number of new COVID-19 cases has surged again, but it is expected that progress in balancing government measures to contain the spread with social and economic activity, based on the infection situation and other factors, will also lead to a recovery in air travel demand.」

「Regarding the risk posed by COVID-19, the number of infected people has recently remained relatively contained, but some uncertainty remains, including the resurgence of infections with new variants, and the company wishes to add that the disease may affect the performance of the group going forward.」

「Regarding the risk posed by COVID-19, the number of infected people had remained relatively contained as vaccination progressed in Japan, but some uncertainty remained, including the spread of variants, and the company wishes to add that the disease may affect the performance of the group going forward.」

「Regarding the risk posed by COVID-19, vaccination in Japan has progressed and expectations for the containment of the pandemic have increased, but some uncertainty remains, and the company wishes to add that the disease may affect the performance of the group going forward.」

「Regarding the risk posed by COVID-19, as stated in the securities report for the previous consolidated fiscal year, the scale of any future spread and the timing of its containment remain uncertain, and the company wishes to add that the disease may have a further impact on the performance of the group.」

「Regarding the risk posed by COVID-19, as stated in the securities report for the previous consolidated fiscal year, the scale of any future spread and the timing of its containment remain uncertain, and the company wishes to add that the disease may have a further impact on the performance of the group. Under these economic conditions, despite the operation of new properties completed in fiscal 2019 and other factors, the group's consolidated results were affected by a decline in water and wastewater revenue due to COVID-19. Revenue was ¥18,136 million, down 2.5% year on year; operating profit was ¥3,368 million, down 7.6%; and ordinary profit was ¥3,233 million, down 8.8%.」

「Under these economic conditions, despite the operation of new properties completed in fiscal 2019 and other factors, the group's consolidated results were affected by a decline in water and wastewater revenue due to COVID-19. Revenue was ¥12,181 million, down 3.0% year on year; operating profit was ¥2,250 million, down 10.2%; and ordinary profit was ¥2,153 million, down 11.3%. In addition, the company recorded rent and heat charge receivables waived for aviation-related customers and others as an extraordinary loss, including losses on debt forgiveness, in response to the impact of COVID-19 during the current period. As a result, quarterly net income attributable to owners of the parent was ¥972 million, down 36.5%.」

「Regarding the risk posed by COVID-19, as stated in the securities report for the previous consolidated fiscal year, the scale of any future spread and the timing of its containment remain uncertain, and the company wishes to add that the disease may have a further impact on the performance of the group. In Japan's aviation industry, flight reductions and suspensions continued on both domestic and international routes, while air travel demand, including demand from visitors to Japan and for travel and business trips, fell sharply.」

「The direct impact on the company's business of the marked decline in air passenger numbers from March 2020 included reduced water and wastewater usage at passenger terminal buildings and other facilities at Haneda and New Chitose airports, as well as reduced volumes of wastewater discharged at the aircraft wastewater treatment facilities (SD plants) installed at 8 airports nationwide. In addition to a substantial decline in related revenue, the company expects to receive requests from aviation-related tenants for rent reductions, and anticipates that fiscal 2020 earnings will inevitably decline under the current circumstances.」