January 26, 2017

Financial Results for the Third Quarter of the Year Ending March 31, 2017 [J-GAAP](Consolidated)
Company name:AIRPORT FACILITIES CO., LTD. (AFC)Stock exchange listed on:
Tokyo Stock Exchange (First Section)
Company code:8864
URL: http://www.afc.jp
Representative: Hiroshi Maruyama, President and CEO
Inquiries: Takahiro Hama, General Manager of Accounting Dept. TEL: +81-3-3747-0251
The date of filing the quarterly securities report:
February 3, 2017
The date of the dividend payment start:－Preparation of quarterly earnings presentation material:
No
Holding of quarterly earnings announcement:
No(Figures are rounded off to the nearest million yen.)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 2017 (April 1, 2016 - December 31, 2016)(1) Consolidated Business Results(Percentages are changes from the same period of the previous year.)
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
First nine months ended

Millions of yen

December 31, 2016
December 31, 2015

16,177
15,328% Millions of yen

5.5
(2.9)

(Note) Comprehensive income:% Millions of yen

3,113
2,408

29.3(10.9)% Millions of yen

2,967
2,295

29.3
(25.1)

%

1,854
1,372

35.1
(19.9)First nine months ended December 31, 2016: 1,619 million yen (10.8 %)First nine months ended December 31, 2015: 1,462 million yen ((47.7 %))Basic earnings
per share

Diluted earnings
per shareFirst nine months endedYen

Yen

December 31, 2016
December 31, 2015

35.89
26.56

35.82
26.54

(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%Yen

85,08085,214

52,63651,644

59.6
58.5

981.50965.69As of December 31, 2016
As of March 31, 2016
(Reference) Equity capital:

Net assets

As of December 31, 2016: 50,712 million yen

As of March 31, 2016: 49,888 million yen

2. Dividends
Dividends per share

Q1

Q2

Q3

Q4

Annual

Yen

Yen

Yen

Yen

Yen－－

6.00
6.00

－－

6.00

12.00

6.00

12.00

FY ended March 31, 2016
FY ending March 31, 2017
FY ending March 31, 2017 (Forecasts)(Note) Changes in the latest forecasts released: No

3. Forecast of Consolidated Earnings for the Year Ending March 2017 (April 1, 2016 - March 31, 2017)(Percentages are changes from the same period of the previous year.)Net sales
Full fiscal year

Operating income

Profit attributable toowners of parent

Ordinary income

Basic earnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

21,650

4.6

3,550

20.6

3,330

4.9

2,140

10.6

41.42

(Note) Changes in the latest forecasts released: No- 1 -＊ Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting from changes in scope ofconsolidation): No(2) Application of specific accounting treatments in preparing the quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
1) Changes in accounting policies with revision of accounting standards, etc. : No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Restatement of revisions: No(4) Number of issued shares (common shares)
1) Number of issued shares (includingAs of December 31, 2016:treasury stock)2) Number of treasury stock
As of December 31, 2016:
3) Average number of shares during
the period

First nine months ended
December 31, 2016:

54,903,750 shares As of March 31, 2016:

54,903,750 shares

3,235,769 shares As of March 31, 2016:

3,242,974 shares

51,663,979 shares First nine months ended
December 31, 2015:

51,661,012 shares* Implementation status of quarterly review procedures
The quarterly review procedures stipulated in the Financial Instruments and Exchange Act are not applicable to this Financial Results report,
and the procedures have not been completed when this Financial Results report was disclosed.

* Explanation of the proper use of earnings forecasts and other special notes(Remarks on forward-looking statements)
The statements about future described on this report such as earnings forecasts have been made based on information currently available andcertain assumptions considered reasonable, and it is not intended to assure that we will achieve such results. Actual earnings may differ
significantly from the above forecasts for various reasons. For the assumptions for earnings forecasts and cautions regarding the use of theearnings forecasts, please refer to “1. Qualitative Information on Consolidated Financial Results for the Quarter Ended December 31, 2016 (3)Qualitative Information on Consolidated Earnings Forecast” on page 4.

- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended December 31, 2016
(1) Explanation about Business Results
During the nine months ended December 31, 2016, Japanese economy showed a moderate improvement in income andemployment environment and a slight recovery in private consumption, supported by ongoing monetary easing by the Bankof Japan. Also, the result of the U.S. presidential election in November 2016 led to the depreciation of yen against dollar,
which contributed to an upward trend of stock prices in Japan and the U.S. until the turn of the year. However, the recoveryof Japanese economy remains uncertain due to increasing global uncertainties including concerns over the possible changes
in economic and diplomatic policies in the U.S., the future development of the Brexit negotiation and increasing terrorist
attacks in the Middle East.
In the aviation industry, the demand for both international and domestic flight increased from the previous year due to acontinued increase of inbound demand in international flight, a slight increase in domestic flight and strong transportation
demands during the New Year holidays. On the other hand, there are concerns over a rise in fuel costs due to an increase in
crude oil prices as a result of an agreement to cut back oil production among OPEC in addition to the depreciation of yen.
Also, as a drastic expansion of LCC market caused a fiercely competitive environment both in Japan and overseas, airline
companies are working on further cost reduction in addition to implementation of advanced equipment and network
expansion.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of¥16,177 million (up 5.5% from the same period of the previous year) due to an improved occupancy ratio in tenants andcost reduction of electricity and gas, operating income of ¥3,113 million (up 29.3%), ordinary income of ¥2,967 million (up29.3%), and profit attributable to owners of parent of ¥1,854 million (up 35.1%).
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥12,026 million (up 6.1% from the same period of the previous year), due
to an improved occupancy ratio of tenants around Tokyo International Airport and Kansai International Airport,
opening of Haneda Asahi Cho Hotel, and increased sales of a consolidated subsidiary in Singapore. Operating
income was ¥2,065 million (up 35.1%).
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business recorded net sales of ¥2,392 million (up 1.7% from the same period of theprevious year) due to a steady growth of sales from cooling service in the reclaimed land area offshore Tokyo
International Airport by Tokyo Airport Heating & Cooling Co., Ltd., a consolidated subsidiary. Operating income
was ¥917 million (up 18.2%) due to decreased rates of electricity and gas.
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥1,757 million (up 7.2% from the same
period of the previous year) as a result of a solid growth in sales of water supply and drainage usage due to agrowing number of passengers at Tokyo International Airport and the operation of solar power plant in Mizunami,
Gifu. Operating income was ¥130 million (up 26.6%).

(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of December 31, 2016 amounted to ¥85,080 million, a decrease by ¥134 million compared to March 31,
2016, due to a decrease in non-current assets as a result of depreciation despite an increase in leased assets of a subsidiaryin Singapore.
(Liabilities)
Liabilities as of December 31, 2016 amounted to ¥32,444 million, a decrease by ¥1,125 million from March 31, 2016, due
to the repayments of long-term loans payable.

- 3 -(Net assets)
Net assets as of December 31, 2016 increased by ¥991 million compared to March 31, 2016 to ¥52,636 million mainly due
to an increase in retained earnings.
As a result, equity ratio as of December 31, 2016 increased by 1.1 points to 59.6% compared to March 31, 2016.
(3) Qualitative Information on Consolidated Earnings Forecast
There is no change as to Consolidated Earnings Forecast for the Year Ending March 2017 which was announced in theFinancial Results for the Second Quarter of the Year Ending March 31, 2017 [J-GAAP] dated October 27, 2016.

2. Summary Information (Other)(1) Changes in Material Subsidiaries during the Period under Review
Not applicable.
(2) Application of Specific Accounting Treatments in Preparing the Quarterly Consolidated Financial Statements
Specific accounting treatments in preparing the quarterly consolidated financial statements
Tax expenses are calculated as income before income taxes for the period multiplied by the estimated effective tax rate. The
effective tax rate is reasonably estimated taking into consideration deferred tax accounting as the rate applicable to income
before income taxes for the consolidated fiscal year including the period ended December 31, 2016.
(Additional Information)(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
From the beginning of the first quarter of the current consolidated fiscal year, the Company has applied “Implementation
Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26 issued on March 28, 2016).
(3) Changes in Accounting Policies and Estimates, and Restatements
Change in accounting policies
Not applicable.

3. Material Events concerning Going Concern
Not applicable.

- 4 -4. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY3/16(As of March 31, 2016)

Third quarter of FY3/17(As of December 31, 2016)

AssetsCurrent assets
Cash and deposits

4,974,638

4,121,906

Notes and accounts receivable-trade

1,006,211

943,825

Securities

1,000,000－

Lease receivables and investment assets

3,874,634

5,448,104

Operating loans

5,392,481

5,814,034

Raw materials and supplies

13,083

14,101

Deferred tax assets

165,175

165,175

Others141,027

809,863

16,567,252

17,317,011

Buildings and structures, net

45,110,286

44,176,893

Machinery, equipment and vehicles, net

5,053,144

4,941,119

38,91038,186Land

9,592,528

9,592,528

Construction in progress

1,562,242

1,666,067

Total property, plant and equipment

61,357,112

60,414,795

25,06423,032

5,976,316

6,114,793

3,429

2,975

Deferred tax assets

468,895

426,493

Net defined benefit asset

198,997

171,898

Others652,251

644,074

Allowance for doubtful accounts(34,567)(34,567)

Total investments and other assets

7,265,322

7,325,668

68,647,500

67,763,495

85,214,753

85,080,507

Total current assets
Non-current assets
Property, plant and equipment

Tools, furniture and fixtures, net

Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable

Total non-current assets
Total assets- 5 -(Thousands of yen)
FY3/16(As of March 31, 2016)

Third quarter of FY3/17(As of December 31, 2016)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,114,793

506,246

Short-term loans payable

4,379,428

4,253,762

Accounts payable

519,280

356,791

Income taxes payable

488,020492,917

Accrued expenses

269,075

98,849Unearned revenue

948,317

1,413,878

Provision for bonuses

131,496

61,530

Provision for directors’ bonuses

25,88012,148Provision for removal cost of property, plant and equipment

223,321

28,913

Others363,151444,934

8,462,765

7,669,971

Long-term loans payable

19,621,404

18,906,761

Long-term guarantee deposited

5,083,361

5,322,822

Long-term accounts payable-other394,749

389,203

Net defined benefit liability

5,370－Provision for directors’ retirement benefits

2,436

696

－

154,922

25,107,322

24,774,405

33,570,088

32,444,377

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,920

6,983,986

Retained earnings

35,418,621

36,652,828

Treasury stock(1,562,688)(1,559,225)

Total shareholders’ equity

47,664,953

48,903,689

Valuation difference on available-for-sale securities

2,234,058

2,330,134

Foreign currency translation adjustment(10,292)(521,576)

Total accumulated other comprehensive income

2,223,766

1,808,557

29,35955,022

Non-controlling interests

1,726,586

1,868,859

Total net assets

51,644,665

52,636,130

85,214,753

85,080,507

Total current liabilities
Non-current liabilities

Provision for removal cost of property, plant and equipment
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Subscription rights to shares

Total liabilities and net assets- 6 -(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of yen)First nine months of FY3/16(April 1, 2015 – December 31, 2015)

First nine months of FY3/17(April 1, 2016 – December 31, 2016)

Net sales

15,328,004

16,177,122

Cost of sales

11,659,573

11,796,846

Gross profit

3,668,430

4,380,276

Directors’ compensations

225,026

231,928

Salaries and bonuses

393,717385,980

Provision for bonuses

37,051

39,285

Provision for directors’ bonuses

12,94012,148Transportation and communication expenses

75,99581,458

Taxes and dues

64,19373,612

Selling, general, and administrative expenses

Depreciation

16,1855,775

Others434,496436,277

1,259,605

1,266,466

2,408,825

3,113,809

130

Dividends income

119,725

142,260

Commission fee

26,18052,928－106,582

Total selling, general, and administrative expenses
Operating income
Non-operating income
Interest income

Gain on reversal of provision for removal cost
Others

86,25759,141

Total non-operating income

232,176

360,913Interest expenses

231,357

269,844

Removal cost of property, plant and equipment

32,61624,288Provision for removal cost

5,622

166,060

Foreign exchange losses

1,874

43,165

Depreciation72,988

－

942

3,398

Non-operating expenses

Others345,401

506,756

2,295,600

2,967,967

Gain on sales of non-current assets

84,955－

Total extraordinary income

84,955－

Loss on retirement of non-current assets

7,339

931

Loss on sales of non-current assets

12,609－Total extraordinary loss

19,949931

Income before income taxes

2,360,606

2,967,036

811,085

932,253

1,549,521

2,034,782

177,278

180,602

1,372,242

1,854,180

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary lossIncome taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 7 -(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of yen)First nine months of FY3/16(April 1, 2015 – December 31, 2015)

First nine months of FY3/17(April 1, 2016 – December 31, 2016)

1,549,521

2,034,782

ProfitOther comprehensive income
Valuation difference on available-for-sale securities(14,906)

96,075

Foreign currency translation adjustment(72,540)(511,283)

Total other comprehensive income(87,447)(415,208)

1,462,074

1,619,574

Comprehensive income attributable to owners of parent

1,284,795

1,438,971

Comprehensive income attributable to non-controlling interests

177,278

180,602

Comprehensive income
Comprehensive income attributable to- 8 -(3) Notes on Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Notes on Significant Changes in Shareholders’Equity)
Not applicable.

5. Other(Significant Subsequent Events)
Not applicable.

- 9 -