CENTRAL JAPAN INTERNATIONAL AIRPORT COMPANY,LTD. (E04362) Stock Price

**Chubu Centrair International Airport Business Model**

Chubu Centrair International Airport is an airport operator responsible for establishing and managing an international airport in Tokoname, Aichi Prefecture. The company operates a comprehensive range of airport-related businesses, from basic facility management and aviation security systems to commercial retail operations within the airport. The group consists of the parent company and three subsidiaries, collectively providing integrated functions necessary for airport operations.

The company's primary customers are airlines, airport users, and businesses operating within the airport. Revenue comes from diverse sources including airport usage fees for aircraft landings and takeoffs, facility usage fees for passenger and cargo handling, sales from airport retail operations, and parking and ground transportation fees. This diversified revenue structure provides stable earnings despite fluctuations in air travel demand.

The company's operations are divided into three business segments: airport operations, retail operations, and ground transportation operations. In airport operations, the parent company manages overall airport administration while subsidiaries handle electrical and thermal supply as well as maintenance of information and communications systems. The retail segment operates duty-free shops and restaurants, while the ground transportation segment manages parking facilities and airport access infrastructure.

Chubu Centrair International Airport has set a vision for 2030 as a major international hub airport handling approximately 20 million passengers annually. In its medium-term management strategy, the company has established a concrete target of 12.6 million passengers by fiscal 2025. Financially, it aims to achieve consolidated net income of 7 billion yen, EBITDA of 20 billion yen, and an operating profit margin of 15.2%. The company is working to establish itself as a leading gateway to Japan, competitive with airports in the Kanto and Kansai regions. It is undertaking the reconstruction of aviation networks in partnership with the region and building a foundation to capture medium to long-term aviation demand growth, particularly from Asia.

A key investment priority is the development of a replacement runway, scheduled to begin operations in fiscal 2027. This will enable 24-hour full operations and continuous airport management, creating a significant competitive advantage. To strengthen airport capacity, the company is upgrading domestic security checkpoints and rolling out fast-track facilities including automated check-in and baggage drop systems, improving passenger convenience while expanding processing capacity. On the commercial side, the company targets duty-free sales of 22.7 billion yen to diversify airport revenues.

For new market development, the company has set targets of 5.8 million international passengers, 6.8 million domestic passengers, and 195,000 tons of international cargo handling, planning balanced business expansion. The company prioritizes collaboration with the local community and is pursuing strategies that contribute to the development of the Chubu region in anticipation of the mega-region era. Through business restructuring and enhanced profitability, it is building a management foundation resilient to various risks, while targeting an ROA of 2.3% to improve investment efficiency.

In technological innovation, the company prioritizes optimizing airport operations and enhancing customer experience value through active use of technology. Toward achieving net-zero carbon by 2050, it aims to reduce greenhouse gas emissions by 46% or more by fiscal 2030, implementing specific measures such as LED conversion of aeronautical lighting. The company is advancing the realization of advanced and efficient functions while creating valuable customer experiences, developing a vibrant airport that transcends a mere transportation hub and establishing a sustainable growth model.