WE SUPPORT AVIATION INDUSTRYANNUAL REPORT 2019
CONTENTS
Highlights of Business Result. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Business Outline. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Review of the Medium-term Management Plan. . . . . . . . . . . . 5
Major Efforts in the New Medium-termManagement Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Special Topic: The Second ESG Report—Efforts focusing on social considerations—.. . . . . . . . . . . . . . . . . . . . . . 9

Outline of Consolidated Financial Statement
and the Forecast on the Performanceand Dividend Next Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Financial Highlights (Five years). . . . . . . . . . . . . . . . . . . . . . . . . 13
Corporate Governance.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

AIRPORT FACILITIES CO., LTD.

Year Ended March 31, 20192018.4.01 2019.3.31

Highlights of Business Result

Our Mission

Our mission is to play a vital rolein the progress of aviation as apivotal private company operating mainly at airports, throughcreating and providing necessary
facilities and functions at airports.

With the new Mediumto achieve sustainable

Corporate Philosophy
1 We will continually advance aheadof the demands and changes of
the times by producing creative
innovation and we will endeavor
to raise corporate value.
2 We make effort to be a reliable

and trusted company that always
provides value which satisfies
customers and complies withpublic expectation.
3 We will foster our staff, and en-courage and reward the efforts
they make and the challenges
they tackle.
4 As a member of civil society, weobserve rules and respect fairness.

President and CEO

Masaaki Kai

ChairmanHiroshi Maruyama

The statements about future described on this report such as earnings
forecasts have been made based on information currently available and
The lobby of ENSO ANGO FUYA II, a hotel in Kyoto

some conditions that we judge rational. Actual earnings may differ greatly
from the above forecasts for various reasons.

1

AIRPORT FACILITIES CO., LTD.

Overview of FY ended in March 2019 and the previous Medium-term Management Plan
(1) Recently, demand in the aviation industry has been increasing
domestically and internationally, along with the reinforcementof airport functions towards the 2020 Summer Olympic andParalympic Games held in Tokyo, including the increase of annual
takeoff/landing capacity by 39,000 slots at Tokyo International
Airport. Airline companies are making various efforts including
the introduction of advanced new equipment, upgrading andexpanding of route networks, and the reinforcement of LCC business. Under such growing business environment, the performancefor the FY ended in March 2019, which was the last fiscal year of
the Medium-term Management Plan (from FY2016 to FY2018) of
our company, resulted in an increase in operating income with the
improvement of the state of tenants at Tokyo International Airport,
start of the operation of hotels in Kyoto, and the contribution of a
subsidiary in Canada in consolidated accounting. Although profit
attributable to owners of parent decreased in the last fiscal yearwith the recording of loss on retirement of non-current assets,
profit attributable to owners of parent had been recorded stably

Net sales

Operating income

24.2

¥

billion+ 6.2% year on year

4.1¥

billion+ 0.6% year on year

term Management Plan in mind, we strive
growth and improve our corporate value.
throughout the three years of the Medium-term Management
Plan, and the company was able to increase dividend in FY2016
and FY2017 under the target of a payout ratio of 30% or more.
(2) We recognize this as a result of being engaged in new businesses at Tokyo International Airport and areas nearby, in regional
airports, and also outside airports and abroad, implementing
active new investments of over ¥25 billion in three years, which
exceeds the planned level. Based on this achievement, we will
aim for the further improvement of corporate value throughsustainable growth in the new Medium-term Management Plan.
The year-end dividend is ¥7.0, as was forecasted at the beginningof the term. In addition, we plan to offer an annual dividend of¥14.0 per share for the fiscal year ending March 31, 2020. We
continue with our efforts to ensure stable return to shareholders.
Major efforts in the new Medium-term Management Plan
(1) In the context of continuous growth in the aviation industry,
the new Medium-term Management Plan, started this April, sets
the basic policy of “full utilization of management resources andreallocation through the improvement of efficiency and selection
Profit attributable to ownersof parent

2.1¥

billion- 5.2% year on year

Cash dividends per share

14.0

¥

± ¥0 year on year

and concentration,” and aims to ensure secure increase in net sales
and operating income through active new investment of ¥30 billion
in total during the three years, which exceeds the annual cash flow,
so as to adequately cope with the growing inbound demand, in
addition to further improvement of profit from existing businesses.
(2) Major efforts include the extension and reconstruction of
ARC Building to renovate it into an in-flight meal factory in Tokyo
International Airport, and the new construction of an aircraft
equipment warehouse and aircraft sewage treatment facility.
The company is also engaged in businesses near the airport. In
addition to the construction of hotels to cope with the increased
number of passengers and apartments for those who work at
the airport, the company also participates in the development ofZone 1 of the former Haneda Airport Ground, which is a project
to develop and operate a base for leading-edge industries andthe transmission of “Cool Japan.” Also outside the airport, we areengaged in businesses including the construction of a dormitory for international students for accepting more international
students, which is also a national policy. In regional airports,
extension of the hangar in Kobe Airport, and the new constructionof a hangar in Fukuoka New Heliport are being engaged to copewith the increase in the number of users. Overseas, we will realize
new investment in functional facilities necessary for airports inSoutheast Asia where demand is active, based in Singapore.
(3) In addition, the company will sincerely be engaged with ESG
through our business and aims to contribute to the achievementof SDGs, in order to realize a sustainable society.

Numerical targets of
the New Medium-termManagement Plan(¥ Million)

27,47024,213
Net sales

Net sales[＋13.5%]

4,550

4,129

OperatingOperating [＋10.2%] income
income

2019/3 (Results)

2022/3 (Targets)* Figures in [ ] shows growth rates(¥ Million)
2019/3Results

2022/3
Targets

Growthrates

27,470＋13.5 %Net sales

24,213Operating income

4,129

4,550

＋10.2 %

Profit attributable to owners of parent

2,104

2,610

＋24.0 %

8,770

＋16.9 %EBITDA (Note)

7,501(Note) Including the recovery of the loans of overseas
subsidiaries

ANNUAL REPORT 20192

Business Outline
As a business portfolio unique to our company, we are engaged inbusinesses such as Real Estate Business mainly in airports and regions
near the airport, Area Heating and Cooling Business that support
airport infrastructure, and Water Supply and Drainage Service andOther Businesses.

Real EstateBusiness

Net sales(‘19/3)Major companies
Airport Facilities Co., Ltd., AIRPORT FACILITIES ASIA PTE. LTD.

11.8%

13.4%

Major business investments (As of March 31, 2019)
Sendai Airport No.3 small aircraft hangar
Kagoshima Airport flight simulator building
New Chitose Airport GSE vehicle hangar
Kitakyushu Airport hangar
Sky Residence Kawasaki Daishi
Hotels in Kyoto
Langley Regional Airport helicopter maintenance facility
in Canada

Domestic Air Cargo Terminal(Tokyo International Airport)

Net Salesby Business
Segment(’19/3)

Real EstateBusiness

74.8%

Overseas location

12 Airports where we deploy our businessOutside Airport/
Overseasbillion (+6.8% )Core businessLeasing of real estate such as multi-purpose generalbuildings, hangars, maintenance plants, apartments,and hotels in airports in Japan and abroad and regions along the railway line connected to the airport

Component Maintenance Building

Water Supply &Drainage Service andOther Business

Area Heating &Cooling Business

18.1

¥

New Chitose

Central Japan Int’l(Centrair)

14.4%

Canada:Langley Regional
AirportOsaka Int’l(Itami)Sendai

Kobe

Other regional
airports

4.8%

Osaka
International
Airport1.4%

KansaiInternational
Airport

1.7%

3

AIRPORT FACILITIES CO., LTD.

Tokyo Int’l Airport,
Tokyo Metropolitan area

Kitakyushu

Kansai Int’l
Hiroshima Heliport

Fukuoka

Net Salesby Region(’19/3)

Tokyo
International
Airport77.7%

Singapore:
Seletar airport

KagoshimaNaha

Net sales/Operating income (¥ Million)
Net sales

20,000Operating income

15,00010,0005,000
02017/3

2018/3

2019/3

We achieved increased net sales and operating income
with the improvement of the state of tenants at Tokyo International Airport, full-year operation of the hangar at Kitakyushu Airport, start of the provision of new apartments, startof the operation of hotels in Kyoto, and the contribution of a
subsidiary in Canada in consolidated accounting.

3.2

Area Heating
Net sales¥& Cooling Business (‘19/3)

billion (+1.0% )Core business
Provision of cooling and heating functions at Tokyo International Airport (areaheating and cooling business)

Energy Center

2.8

Water Supply & Drainage Net sales¥
Service and Other Business (‘19/3)

Core business
Water supply and drainage business, local
area communication networks businessat Tokyo International Airport and New
Chitose Airport, and solar power generation business

Water supply & drainage facilities
in the reclaimed land area offshore

Major companies
Tokyo Airport Heating & Cooling Co., Ltd.
Major business investments (As of March 31, 2019)
Boiler renewal work

High-efficiency Electric Turbo Chiller

billion (+8.4% )Major companies
Airport Facilities Co., Ltd.

Shared Communication Service

Major business investments (As of March 31, 2019)
TRC Distribution B Bldg. rooftop solar
power plant

Areas covered by our heating and cooling system in Tokyo International Airport

Areas covered by our local area communication network
Runway D

Runway D

Runway C
Domesticcargo area

Domestic
passenger area

Runway C
New aircraft
maintenance area

Domesticcargo area

Runway A
Runway B

Former aircraft maintenance area
(1-chome district)

Net sales/Operating income (¥ Million)
Net sales

Operating income

3,000
2,000
1,000
0

2017/3

2018/3

International
passenger and cargo area

Runway B

Net sales/Operating income (¥ Million)
4,000

New aircraft
maintenance area

Runway A
International
passenger and cargo area

Former aircraft maintenance area
(1-chome district)Domestic
passenger area

2019/3

While the net sales were generally unchanged fromthe previous term partly because it had been a warm
winter even though there had been extreme heat insummer, there were increases in electricity and gas
prices, resulting in net sales increase and operating
income decrease.

Net sales

3,000

Operating income

2,000
1,000
0
2017/3

2018/3

Net sales and operating income increased due tothe steady sales of water supply and drainage inline with an increase in the number of users of Tokyo
International Airport and increase in water supply totunnel and road construction works, and the start ofthe operation of solar power generation facilities in
Heiwajima, Ota-ku.

2019/3

ANNUAL REPORT 20194

Review of the Medium-term Management Plan (from FY2016 to FY2018)
Major efforts in regions near the Tokyo International Airport and outside the airport

Regions near the airport

Outside the airport

Haneda Asahi Cho hotel
It was constructed as a hotel for the users of the airport. The hotel is rented to
ORIX Real Estate Corporation and started operation as “Hotel JAL City Haneda
Tokyo West Wing” in September 2016.

TRC Distribution B Bldg. rooftop solar power plant
Started rent
in July 2016

Kawasaki Daishi apartments
It is provided for those whowork at the airport as “Sky Residence Kawasaki Daishi.” It is
used as apartments mainly forthe employees of ANA Group.

5

AIRPORT FACILITIES CO., LTD.

One of the largest-scalesolar power plants in central Tokyo was constructed by utilizing the rooftop
of “Distribution B Bldg.,” abuilding held by Tokyo
Ryutsu Center Inc., andstarted operation.

Started rent in
February 2018

Hotels in Kyoto
Started rent
in March 2018

Aiming to further expand ourbusiness area, we acquired newhotels in Kyoto, where international tourism demand is notably
high. The hotel is rented to Global
Hotel Management Ltd.,and started
business in
October 2018.

Started rent
in June 2018

Major efforts at regional airports

Major efforts abroad

Sendai Airport No. 3 small aircraft hangar

Pilot training facility (Singapore Seletar Airport)

This hangar, which was newly
constructed towards the resumption of flight services by
All Nippon Helicopter Co., Ltd.
at Sendai Airport, is a facility
that can also be used immediately as a base for news
coverage when a disasteroccurs with increased seismic
capacity.

Started rent
in July 2017

Started rentin April 2016

Helicopter maintenance facility (Langley Regional Airport, Canada)

Kagoshima Airport flight simulator buildingThis facility is being rented to Japan Air Commuter Co., Ltd. (JAC), based in
Kagoshima Airport andoperating flights between
local cities and remoteislands, and is equippedwith a state-of-the-art
full-flight simulator.

The highest-class pilot training facility where 10 aircraft simulator units can be housed is rented to Airbus Group Singapore
Pte. Ltd. Financial services for the simulator installed and used
are also offered.

Started rent in
December 2017

AFN PROPERTIES
LTD., a locally-incorporated company inCanada, acquired ahelicopter maintenancefacility in Langley Regional Airport in Canada, and is leasing it toStandardAero Ltd.

Started rent in
October 2017

ANNUAL REPORT 20196

Major Efforts in the New Medium-term Management Plan (from FY2019 to FY2021) NEW
Efforts in the Tokyo
International Airport ,regions near the airportand outside the airport
As for businesses within Tokyo International Airport, we will reinforce
capacity through the developmentof facilities to cope with the increaseof international flights to respond toinbound increase, towards the reinforcement of functions including
the increase of annual takeoff/landing capacity by 39,000 slots by 2020.
The businesses near the airport
aim to construct hotels to cope withthe demand from the passenger
increase and for apartments to copewith increase in people who work at
the airport.
As for businesses outside the airport, active business opportunities
are sought to realize new investment, utilizing our know-how developed through businesses within the
airport.

7

AIRPORT FACILITIES CO., LTD.

Scheduled to becompleted by
FY2019New construction of TechnicalCenter warehouse building
Within the
airport

As a part of measures to reinforce functions due to increase in the numberof takeoff/landing slots, new construction of an aircraft equipment
warehouse building started in March 2019.

Participation in theDevelopment of Zone 1 of theFormer Haneda Airport Ground

Open to the town
in 2020

Regions
near theairport

We participate in the project to develop and operate a base for leadingedge industries and the transmission of "Cool Japan" (grand opening in2022).

Extension and reconstruction
Scheduled to beof ARC Building to renovate itcompleted by
FY2019into an in-flight meal factory
Within the
airport

Receiving a request from a company planning to use the facility, partial
extension and reconstruction work into an in-flight meal factory started
in January 2019.

New construction of dormitory
Scheduled to be
for international students incompleted by
FY2020
Kanto Gakuin University
Outside theairportWe are engaged in the construction of a dormitory for accepting moreinternational students, to address increasing inbound demand.

Efforts at regional airports

Efforts abroad

Regarding regional airports business, facilities will be developed
to cope with the improvement of airport functions. As for regional
airports concession, we will research and consider the possibility forparticipation in projects where we can capitalize on the strengths ofour company.

As for overseas business, we seek business opportunities such as thedevelopment of functional facilities necessary for airports, the leasing of flight simulators, and the leasing of other movable properties,
mainly in Asia such as Singapore, to cope with active aviation-related
demand and realize new investment.

Scheduled to becompleted by
FY2019Extension of hangar in Kobe Airport

Singapore

Singapore Seletar Airport

The extension of a hangar being rented to Airbus Helicopters Japan Co., Ltd. started this June.

Scheduled to becompleted by
FY2019New construction of hangar
in Fukuoka New Heliport

Source: JTC Corporation

The relocation of the hangar for small aircrafts to Nata Heliport (tentative name) started this February.
* Above is still at the planning phase and the specifications are yet to be determined.

ANNUAL REPORT 20198

Special
Topic

The Second ESG Report— Efforts focusing on social considerations —Our company is regularly implementing socially-considerate efforts
as a part of ESG (environmental, social and governance) efforts.
Our company, based on highly public businesses in airports, and supporting the safe airport operation and flight operation of airline companies,
is engaged in internal and external efforts to protect the safety and health of people, including conducting various disaster drills, as a part of BCP(Business Continuity Plan) in preparation for the occurrence of a large-scale disaster at an airport.

Disasterprevention

9

Disasterprevention

Implementing a comprehensive disaster drill within Tokyo International Airport and participation in tsunami
evacuation drill

Participation in examination session for the drills of
the self-protection fire defense team to confirm theachievement of daily training

We are working to maintain and improve the awareness of crisis management by implementing a comprehensive disaster drill assuming the occurrence of a large-scale earthquake within Tokyo International Airport, and participating in a tsunami evacuation drill.
Employees of our company are assuming an instructional role in some of the disaster drills.

Employees of our company participated in the Examination Session for the Drills of Self-Protection Fire Defense Team, held by Kamata Fire Station near Tokyo International Airport andthe Kamata Fire Prevention Management Association, and confirmed the achievement ofdaily training through exchange with the local community (September 2018).

AIRPORT FACILITIES CO., LTD.

SDGs

For the achievement of sustainable society, our company aims to contributeto the achievement of SDGs through our business.

Together with our employees
Security

HealthOur company, aiming to “realize the improvement of productivity
through work style reform” as one of the focused efforts in the new
Medium-term Management Plan, recognizes the maintenance andimprovement of the health of employees who supports the backboneof our business as one of the top priority themes, and works to improve various systems for health management.

Efforts regarding the healthmanagement of employees■ Subsidiary system for

Implementing training to prepare for emergency
life-saving twice a year
Our company, equipping automated external defibrillators (AED) within owned facilities, implements training sessions for basic life-saving certification twice a year, so as
to be able to offer life saving treatment to tenants and employees in an emergency.

complete medical
checkup■ Sports club discount■ Injury and disease
allowance■ Subsidiary for
influenza vaccination
expenses■ Subsidiary for women's
lifestyle-related diseases
checkup■ Industrial physician

system■ Stress check■ Medical checkup

implemented twice ayear■ Research on
accumulated fatigue■ Mutual aid
association system

ANNUAL REPORT 201910

Outline of Consolidated Financial Statement and the Forecast on the Performanceand Dividend Next Year
Outline of Consolidated Financial Statement(¥ Million)❶
24,21324,78022,791

FY ended March 31, 2018
FY ended March 31, 2019
FY ending March 31, 2020 (Outlook)

❷
4,129

4,170

❸
3,338
3,726
3,710

Operating income

Ordinary income

4,103

Net sales

❹
2,104
2,320
2,219

Profit attributable toowners of parent

Outline of Consolidated Balance Sheet(¥ Million)

Total assets

87,961

Current assets

Current liabilities

17,531

10,050101,384

20,844Non-current
liabilities

70,430Net assets

54,482As of March 31, 201811

AIRPORT FACILITIES CO., LTD.

Current liabilities

11,192
Non-current
liabilities

2

34,451

23,428Non-current
assetsOutlook for the next term
We expect increases in net sales and operating income for the FY ending March
2020, with the start of tenants moving in to the new in-flight meal factory in Tokyo
International Airport, new operation of aviation-related facilities in Tokyo International
Airport and regional airports including Kobe Airport, and the full-year contribution of
hotels in Kyoto that were acquired in 2018.

1 Total assets

Current assets

Non-current
assets80,539Outline of fiscal year ended March 2019
1 (Net sales) We achieved a 6.2% increase from the previous term with the improvementof the state of tenants at Tokyo International Airport, full-year operation of a hangar
at Kitakyushu Airport, start of the provision of new apartments, start of the operationof hotels in Kyoto, increase in the number of the users of Tokyo International Airport,
increase in water supply to various construction works, start of the operation of solar
power generation plant in Heiwajima, Ota-ku, and the contribution of a subsidiary in
Canada in consolidated accounting.
2 (Operating income) While there had been a rise in electricity and gas prices,
depreciation according to the acquisition of hotels in Kyoto, and increase in realestate acquisition tax, there were sales increases in each business segment, resulting
in a 0.6% increase from the previous term.
3 (Ordinary income) Although the foreign exchange loss of the subsidiary in Singapore
improved, with the record of provision for removal costs for ARC Building, which
is being extended and reconstructed into a new in-flight meal factory in Tokyo
International Airport, ordinary income decreased by 10.4% from the previous term.
4 (Profit attributable to owners of parent) While the damages from the typhoon werecovered by insurance payment, there was a loss on the retirement of facilities closedwith the installation of a new national room for honored guests, resulting in 5.2%
decrease from the previous term.

Financial position as of March 31, 2019
1 (Total assets) Total assets increased by ¥13,422 million, mainly due to the acquisition

Net assets

55,740

As of March 31, 20193of the hotel in Kyoto.
2 (Liabilities) Liabilities increase by ¥12,165 million due to issuance of bonds
associated with acquisition of the hotel in Kyoto and an increase in long-termloans payable.
3 (Net assets) Net assets increased ¥1,257 million mainly due to an increase in retained
earnings, resulted in decrease of equity ratio to 52.6% (6.7 points).

Outline of Consolidated Cash Flow

1 Net(¥ Million)❷ Cash flowsfrominvesting activities❸ Cash flowsfromfinancing
activities

5,176

4,608

❶ Cash flows
fromoperatingactivities-42

Increase in cash
and cashequivalentsfrom newly
consolidated
subsidiary48

Effect ofexchange ratechange on
cash andcash equivalents-13,490

9,524

5,824

❹ Cash andcash equivalents
at end of ’19/3

Cash andcash equivalents
at beginning of ’19/3

52.6%

Outlook of Business Results and Dividend
for the Next Term
Outlook for consolidated business results and dividend
for the year ending March 31, 2020

Changes in Major Financial Indicators
Equity Ratio

cash provided by operating activities was ¥5,176 million(compared to ¥7,147 million in the previous term). This is mainly
attributable to recording income before income taxes and anincrease in operating loans in an overseas subsidiary and purchaseof other assets.
2 Net cash used in investing activities was ¥13,490 million (comparedto ¥5,383 million in the previous term). This is mainly attributable topurchase of non-current assets, the hotel in Kyoto.
3 Net cash provided by financing activities was ¥9,524 million(compared to ¥2,909 million used in the previous term). This is mainly
attributable to proceeds from issuance of bonds associated with theacquisition of the hotel in Kyoto and an increase in proceeds fromlong-term debt.
4 As a result, cash and cash equivalents as of March 31, 2019 increased¥1,216 million to ¥5,824 million.

EBITDA + recovery

7.5- 6.7 points year on year¥
billion+ 11.3 % year on year

As a result of the increase of total assets by¥13,422 million (15.3%) and equity capitalby ¥1,110 million (2.1%), the equity ratio decreased by 6.7 points.

EBITDA + recovery increased by 11.3% fromthe previous term, with the increase of operating income before depreciation and recovery
from overseas finance.

Net sales¥24,780 million (+2.2% year on year)

Operating income¥4,170 million (+0.8% year on year)

Ordinary income¥3,710 million (+11.2% year on year)

Annual dividend(forecast)¥14.0 (interim ¥7.0, year-end ¥7.0)

For more detailed financial information, please refer to our website “Investor Relations”
Airport Facilities Co., Ltd.

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Investor Relations

ANNUAL REPORT 201912

Financial Highlights (Five years)
Net sales (¥ Million)

Operating income (¥ Million)

30,0004,000

20,00021,111

20,697

21,66224, 213

22,7910

2015/3
Ordinary income (¥ Million)

2016/32017/3

2018/3

2019/3

4,000

3,173

3,492

3,726

3, 338

3,164

2,000

4,129

2017/3

2018/3

2019/3

Profit attributable to owners of parent (¥ Million)
2,151
1,935
2,000
1, 5052, 2192,104

2019/30

2015/3

2016/31,000

2015/3

2016/32017/3

2018/3

2019/30

Business investment in plant and equipment/Depreciation expense (¥ Million)

2015/3
Total assets (¥ Million)

15,000120,000

Business investment in plant and equipment

13,611

Depreciation expense

10,0005,000
060,00080,0002,973 3, 551

3,048 3, 503

4, 504 3, 547

2016/32017/3

2018/3

2019/350,71551,64453,41554,48255,7402015/3

2016/32017/3

2018/3

0.481

0.466

0.443

1,980

3,433

2015/3

Net assets (¥ Million)

4,033

40,00020,0000Debt to equity (Times)
0. 6

0.450

0. 4

2019/30. 5192016/32017/3

2018/384, 27085, 21487, 580

87,961

2015/3

2016/32017/3

2018/3

58. 3

58. 5

58.7

59.4

2015/3

2016/32017/3

2018/3

2019/3

3.91

4. 24

4. 28

3.98

2016/32017/3

2018/3

2019/3

101, 384

40,0000

2019/3Equity ratio (%)
80
60
40
20
0

52.6

ROE (%)
6
4

0. 2

3.15

2

0

2015/3

2016/32017/3

2018/3

2019/3

6,161

6,737

7, 501

EBITDA + recovery (¥ Million)
8,000

5, 367

5,176

4,000
0

13

4,103

2,944

2,000

10,000

0

3,825

3,165

0

Annual dividend (¥: left axis) /Payout ratio (consolidated) (%: right axis)
20
102015/3AIRPORT FACILITIES CO., LTD.

2016/32017/3

2018/3

2019/3

2015/3

0

12.00
41. 2
2015/312.00
32.0
2016/3

13.00

Annual dividend

14.00

Payout ratio

14.00

100
50

31. 2
2017/332. 3
2018/3

33.1
2019/30

Corporate Governance
Basic Philosophy

Executives (As of June 27, 2019)

We are fully aware of our management responsibility relegated from shareholders and social responsibility

Chairmanas a company with its business based on services in airports. With our mission and corporate philosophy

Hiroshi Maruyama

President and CEO

in mind, we strive to complete our corporate governance to improve our corporate value and for the

Masaaki Kai

Executive Vice President

common benefit of our shareholders.

Toshitaka Watanabe

Executive Vice President

Toshiaki Norita

Senior Managing Director

Toshiyuki Nagayoshi

Senior Managing Director

Hiroyuki Hoshi

Senior Managing Director

Kosei Ashikaga

Managing Director

Keisuke KomatsuManaging Director

Mitsuhiko Okada

Director

Shigeo Tamura

External Director

Toyoyuki Nagamine

External Director

Tadao Nishio

External Director(Independent Officer)

Takehiko Sugiyama

External Director(Independent Officer)

Kayo Aoyama

Full-time Statutory Auditor

Mineo Tsuguchi

Full-time Statutory Auditor

Kazuhiko Muraishi

Statutory Auditor(Independent Officer)

Akihiko Shiba

Statutory Auditor(Independent Officer)

Satoshi Iwamura

Risk Management Committee

Senior Corporate Officer

Hiroki Osawa

Audit OfficeSenior Corporate Officer

Yukihiko Takada

Corporate Officer

Ryuichi Yasuda

Corporate Officer

Takahiro Hama

Corporate Officer

Takashi Yasuda

Corporate Officer

Atsuo Ichise

Structure of Organization
ensured, by regularly holding the Board of Directors meeting and Board of Corporate Auditors

Directors

We maintain the system where adequate business judgment and management supervision is constantly
meeting, and holding them on a temporary basis when necessary. The number of directors shall be
17 or less, including both internal andexternal directors. There are currently
14 directors. Also, based on the criteria

Diagram of Internal Control System
General Meeting of Shareholders

of independence set forth by the
Tokyo Stock Exchange, we appointed

Board ofCorporate Auditors

Accounting Auditors
Board of Directors

addition, we adopt the Corporate

Nomination Committee

Officer System aiming at rapid decisionmaking, etc. Furthermore, we strive

Compensation Committee
Board of Executive Directors
Compliance Committee

to ensure managerial compliance,
appropriateness and efficiency bycontrol system shouldered by the
Audit Office monitoring our businessactivities, Compliance Committee, andRisk Management Committee.

Enlarged Board of Executive Directors
Management Strategy Council
Overseas Investment Management Council
Board of Corporate Officers
Departments and Consolidated Subsidiary

Corporate Officers

maintaining and enhancing the internalPresident

Corporate Auditors

2 independent external directors. In

ANNUAL REPORT 201914

Corporate Profile
Corporate Name: Airport Facilities Co., Ltd. (AFC)Main Banks: Development Bank of Japan
Resona Bank

Established:

February 1970

Capital:6,826.10 million yen

Employees:

115

Mizuho BankMUFG Bank
Sumitomo Mitsui Trust Bank(Consolidated as of March 31, 2019)

Sumitomo Mitsui Banking Corporation

Stock Information (as of March 31, 2019)
Stock Listings:

Tokyo Stock Exchange (TSE) 1st Section(Ticker Code: 8864)

Total Number of Shares Authorized: 124,800,000

Major Shareholders
Number of Shares Owned(thousands)

Ratio of Shareholding(%)

Japan Airlines Co., Ltd.

10,521

19.86

10,521

19.85

Shareholder

Total Number of Shares Issued:

52,979,350

ANA HOLDINGS INC.
Development Bank of Japan Inc.

6,920

13.06

Number of Shareholders:

6,961

1,607

3.03

Share Unit Number

100 shares

MLI FOR CLIENT GENERAL OMNI NONCOLLATERAL NON TREATY-PB
Tomio Banno

1,315

2.48

Composition of Shareholders
Japanese Government andLocal Public Bodies

0.00%

Stock Price and Trading Volume (Monthly)(¥) Stock price

The Company (Treasury Stock)

700

Individuals

600

6.08%

Securities Companies

14.91%

0.61%

Foreign Investors

500
012.91%

Other
Japanese
Corporations

43.05%

Financial Institutions

22.44%

18/4

18/5(Thousand shares) Trading volume

1,200
800
400

0

18/6

18/7

18/8

18/9

18/10

18/11

18/12

19/1

19/2

19/3