WE SUPPORT AVIATION INDUSTRYANNUAL REPORT 2017

Year Ended March 31, 20172016.4.01 2017.3.31

AIRPORT FACILITIES CO., LTD.

Message from the President & Highlights of

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.

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.

We vigorously push ourselves

CONTENTS
Message from the President &Highlights of Business Result. . . . . . . . . . . . . . 1
Business Outline. . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Recent Efforts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Medium-term Management Plan
“Challenge to the next step”;
Efforts in seven areas. . . . . . . . . . . . . . . . . . . . . . 7
Special Topic: Project Report—Efforts in Area Heating and Cooling Business—. . . . 9

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

4 As a member of civil society, weobserve rules and respect fairness.
President and CEO

Business environment and the business results of our Groupfor the fiscal year ended March 2017
In the aviation industry, while there are positive effects of increasein the number of inbound passengers to Japan and decline in fuelprice, there is also harsh competition with LCC and Shinkansen.
Airline companies are currently working on reducing every cost, in
addition to efforts to expand business including the improvementof networks.
Under such economic situation, the business of our Group for
the fiscal year ended March 2017 resulted in increased net sales
and operating income compared to the previous term, which wasachieved with cost reduction in addition to continuous efforts
from two years ago to cope with the problem of vacant rooms.
We were able to exceed the goal set for the first fiscal year in theMedium-term Management Plan announced in October 2016.
Dividend
We recognize profit return to our shareholders as one of ourbusiness challenges. We are actively working on exploring new
business opportunities to ensure profit, while also consideringinternal reserves to prepare for future investment opportunities

Net sales

The statements about future described on this report such as earnings
forecasts have been made based on information currently available andsome conditions that we judge rational. Actual earnings may differ greatly
from the above forecasts for various reasons.

1

AIRPORT FACILITIES CO., LTD.

21.6

¥

billion+ 4.6% year on year

Operating income

3.8¥

billion+ 29.9% year on year

Business Result

forward toward active business development and stable growth.
and mid-term business outlook in a comprehensive manner, toimprove the profit return.
Year-end dividend to pay for the year is ¥7.0, which is anincrease by ¥1.0 from the latest dividend forecast, considering thedividend policy mentioned above and the business results of theyear. In addition, we plan to offer an annual dividend of ¥14.0 per
share for the fiscal year ending March, 2018. We continue with ourefforts to ensure stable profit return, and aim to keep a payout
ratio of 30% or more as a general rule.
Business development during the fiscal year ended
March 2017
In Japan, our Group has been working on the moving in of tenants
to some of the existing properties in Tokyo International Airport,
which is the business foundation of the company, from two years
ago. In addition, the hotel that has been constructed in the region
near the airport commenced operation. On the other hand, as
for businesses abroad, leasing of pilot training facilities started at
Singapore Seletar Airport with an aim to further expand business.
In addition, our Group considers the growth of aviation-related
demands in Japan and abroad as a great opportunity to exploit

Ordinary income

3.4¥

billion+ 10.0% year on year

Profit attributable to ownersof parent

2.1¥

billion+ 11.1% year on year

experiences and know-how developed, and formulated the Medium-term Management Plan and determined our commitment
in realizing active business development and achieving stable
growth.
Future efforts and outlook
We will continuously improve our business efforts in Tokyo
International Airport and the regions nearby, including theprovision of hotels and apartments in line with the increasing
importance of the role of the Airport.
On the other hand, we will continue our business development in regional airports, including the hangar now underconstruction in Kitakyushu Airport, and plans to constructaviation-related facilities in other regional airports. While weare currently operating water supply and drainage business inTokyo International Airport, we have also started water supply
and drainage business in New Chitose Airport.
Based on above, we expect increased income and profits
for the fiscal year ending March 2018, and both net sales andoperating income exceed the expectations set forth in theMedium-term Management Plan.

Cash dividends per share

13.00

EBITDA + recovery

6.1

¥

¥

+ ¥1.00 year on year

+ 19.0% year on year

billionNumerical targets
Stable increase in net sales and operating income after hitting the bottom
in the fiscal year ended March 2016.
(¥ Million)

20,697
Net
sales

2,944

22,54021,662

Net
sales

Net
sales

3,825

3,960

OperatingincomeOperatingincome2017/3(Results)

2019/3(Targets)

Results

Medium-termManagement Plan

Operatingincome2016/3(Results)(¥ Billion)

2016/32017/3

2018/3

2019/3

Net sales

20.6

21.6

22.0

22.5

Operatingincome

2.9

3.8

3.8

3.9

EBITDA+
recovery

5.1

6.1

6.4

7.0

Profit attributable to ownersof parent

1.9

2.1

2.1

2.2

ANNUAL REPORT 20172

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(‘17/3)

Area Heating &Cooling Business

14.8%

Net Salesby Business
Segment(’17/3)

Real EstateBusiness

Major companies
Airport Facilities Co., Ltd.,AIRPORT FACILITIES ASIA PTE. LTD.

Domestic Air Cargo Terminal(Tokyo International Airport)

Major business investments (‘17/3)
Kitakyushu Airport hangar
Haneda Asahi Cho hotel
Sendai Airport No.3 hanger

74.5%

Overseas location

12 Airports where we deploy our businessOutside Airport

Other regional
airports

3.0%
Overseas 1.8%
Osaka
International
Airport1.2%

KansaiInternational
Airport

2.3%

11.0%

New Chitose

Central Japan Int’l(Centrair)
Osaka Int’l(Itami)Sendai

Kobe
Tokyo Int’l Airport,
Tokyo Metropolitan area

Kitakyushu

Net Salesby Region(’17/3)

80.7%

KagoshimaNaha

Net sales/Operating income (¥ Million)
Net sales

20,000Operating income

15,00010,0005,000
03AIRPORT FACILITIES CO., LTD.

Singapore:
Seletar airport

Kansai Int’l
Hiroshima Heliport

Fukuoka

Tokyo
International
Airportbillion(+5.3% )Core businessLeasing of real estate such as multi-purpose general buildings, hangars, maintenance plants, apartments, and hotels in
airports in Japan and abroad and regions
along the railway line connected to the
airportComponent Maintenance Building

Water Supply &Drainage Service andOther Business

10.8%

16.1

¥

2015/3

2016/32017/3

In addition to the improvement of the state of
tenants moving in at Tokyo International Airport and other places, the operation of Haneda
Asahi-Cho Hotel and increase in the sales ofa subsidiary in Singapore also contributed toincreases in net sales and operating income.

Area Heating& Cooling BusinessNet sales(‘17/3)

3.2¥

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

Energy Center

2.3

Water Supply & Drainage Net sales¥
Service and Other Business (‘17/3)

Core business
Water supply and drainage business, local
area communication networks businessat Tokyo International 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 (‘17/3)
Boiler renewal work

High-efficiency Electric Turbo Chiller

Major companies
Airport Facilities Co., Ltd.
Shared Communication Service

Areas covered by our local area communication network

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

2015/3

2016/3

New aircraft
maintenance area

International
passenger and cargo area

Runway B

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

Domestic
passenger area

Runway A
International
passenger and cargo area

Former aircraft maintenance area
(1-chome district)billion(+4.9% )2017/3Due to the steady performance of thesales of area heating and cooling in thereclaimed land area offshore Tokyo International Airport and a decline in electricity
and fuel gas prices, net sales and operating
income increased.

Net sales

2,500

Operating income

2,000
1,500
1,000
500
0

2015/3

2016/3

Net sales and operating income increased due
to increase in the sales of water supply anddrainage in line with an increase in the number of incoming and outgoing passengers,
and the operation of a solar power plant in
Mizunami City, Gifu Prefecture.

2017/3

ANNUAL REPORT 20174

Recent Efforts

For the mid- tolong-term businessexpansion andthe stable developmentof businessWe commit ourselves to active business expansion in the mid- to long-term and ensuring the stable development of business, toaim for increasing returns to shareholders.

For the business expansion in Tokyo International Airport andregions along the railway line connected to the airport
Participation in the “Development ofZone 1 of the Former Haneda Airport
Ground (Phase I)”
Information was disclosed from the Ota-ku government to the candidate development and operation
organizations in May 2017. The group including ourcompany as a member was decided as a candidate development and operation organization, and is scheduled to be engaged in businesses in the leading-edge
industry and cultural industry.
Runway B
Former aircraft
maintenance area
(1-chome district)

Zone 1 of the Former Airport Ground

AIRPORT FACILITIES CO., LTD.

We have been working on the improvement of thestate of moving in of tenants to the existing properties in Tokyo International Airport. Recently, usage as
pilot training facilities for airline companies, maintenance facilities, and for core function is progressing.

International passenger
and cargo area

Planned site for Phase I

5

The state of moving in to the existing
properties is improving

Maintenance Center Annex
Simulator

For expanding business inregional airports and local cities
Installing one of the most powerfulsolar power facilities in central Tokyo
We are promoting a plan to install one of the largest
solar power facilities in central Tokyo in terms of output at the rooftop of Tokyo Ryutsu Center New B Logistics Building (tentative name) in Heiwajima, Ota-ku,
Tokyo. The construction is scheduled to start aroundsummer this year. This is the fourth solar power generation project for our company.

Rendering of Tokyo Ryutsu Center New B Logistics Building (tentative name),
one of the largest rooftop solar power facilities in central Tokyo

For expanding
business abroad

Providing new facilities
We are constructing hangars in Kitakyushu Airport andSendai Airport, which are scheduled to be used as anaircraft maintenance hangar and hangar for small aircrafts. We are also scheduling to construct a hangar for
GSE vehicles (*) in New Chitose Airport and a crew training facility in Kagoshima Airport.
Hangar in Sendai Airport

Facility for crew training in
Kagoshima Airport
Commencement of construction:
July 2017 (scheduled)

Commencement of construction:
February 2017
Completion of construction: End
of July 2017 (scheduled)Completion of construction: Endof November 2017 (scheduled)Hangar in New Chitose Airport

Hangar in Kitakyushu Airport

Commencement of construction:
July 2017 (scheduled)

Commencement of construction:
December 2016

Completion of construction: Endof November 2017 (scheduled)Completion of construction:
January 2018 (scheduled)

Continuously respond to increase ininternational demand
We will continue with our effort to respond to increasing international demand for aviation service.
Facilities provided byour company (Hangar)

Facilities provided byour company(Engine maintenance plant)

Facilities provided by ourcompany (Pilot training facility)

Seletar Airport

New Chitose
AirportSendai Airport
Singapore Seletar Airport

Kitakyushu Airport
Kagoshima Airport

Airports where we deploy our business(12 airports in Japan)* GSE (Ground Support Equipment) vehicle: Vehicles used for work supporting the flights ofaircrafts on the ground, including the loading and unloading of baggage (cargo) and fueling

ANNUAL REPORT 20176

Medium-term Management Plan “Challenge to the next step”; Efforts in seven areas
In the Medium-term Management Plan, we are focusing on seven areas based on “Our Mission.”

Our Mission

Our mission is to play a vital role in the
progress of aviation as a pivotal privatecompany operating mainly at airports,
through creating and providing necessary facilities and functions at airports.

1 Efforts within the premises of

2 Efforts related to the addition

3 Efforts based on collaboration

We will continuously improve our efforts in linewith the increasing importance of the role of Tokyo International Airport.

We will promote our efforts to respond to needs
related to the maintenance and repair of aircrafts,
flight training, and component procurement.

Based on collaboration with our customers
and business partners, we also consider adding
high-value to the cargo business, leasing of movable properties, and excellent urban development.

Tokyo International Airport
and regions near the airportof new equipment by airline
companies

with our customers andbusiness partners■ Refrigerating facility for our tenant(CSN ChihouSouseiNetwork Co., Ltd.) (Tokyo Haneda Market)

1
Efforts within the premises ofTokyo International Airport andregions near the airport

7

2

Efforts corresponding
to the changing
regional airport business

Efforts related tothe addition of
new equipment byairline companies

63

Efforts to further
expand the current
business area

Efforts basedon collaboration
with our customers andbusiness partners

In-flight meal plant

Pilot training facility (Singapore Seletar Airport)■ Number of passengers using Tokyo
International Airport *1■ Forecast of demand for commercial
aircrafts abroad (2014-2034)(Thousands)(Million)100

40 thousands

45
Number of domestic passengers

Approx.

40

Number of international passengers

35

80

Overall growth:
approx. twice30

4Efforts in business
Efforts to support
related to theaviation in emerging
maintenance ofregions abroad,business jet aircraft
including Asia

60

20
15

40

0

10
5
2012/3

2013/3

2014/3

2015/3

2016/3*1 Source: “Report on the State of Airport Management” by
the Ministry of Land, Infrastructure, Transport and Tourism*2 Preliminary figures

7

AIRPORT FACILITIES CO., LTD.

2017/3*20East Cargo Terminal Area

17%

Tokyo International Airport

18%

25

5

Fresh fish processing center within the airport: Chosoku Sengyo(Ultra high-speed fish processing) Tokyo Haneda Market

9%

22%

Demand in Asia:
Approx.
threefold,developing into
the world’s
largest market■ Urban projects

18%
Russia, etc.
Latin America
Middle East/Africa

28%

35%

28%
2014

EuropeNorth America
Asia

2034

Source: Average figure calculated from the data releasedby BOEING/AIRBUS

Sky Residence Otorii(Ota-ku, Tokyo)

4 Efforts in business

related to the maintenanceof business jet aircraft

Based on the increase in demand for businessjet aircrafts, we will promote the business related to the maintenance thereof.

5 Efforts to support

aviation in emerging regions
abroad, including Asia

We are developing businesses abroad, mainly in Asia,
to tap into aviation-related business, which is prospering based on population increase and high growth.

6 Efforts to further expand

the current business area

In addition to hotel business based on the tourism strategy of the government and increase in
the number of visitors from abroad, and renewable energy business in airports and aviation-related facilities, we also consider cost reduction
and increased efficiency through shifting outsourced operations to in-house operations.

7 Efforts corresponding to

the changing
regional airport businessWe also promote efforts related to business inregional airports.
■ Trend of airport privatization
Schedule
April 2016
July 2016
April 2018 (scheduled)
April 2018 (scheduled)
April 2019 (scheduled)
FY2020 (scheduled)
To be determined

Large-scale hangar (near Runway B of the former aircraft maintenancearea in Tokyo International Airport)

Engine maintenance plant (Singapore Seletar Airport)■ Number of arrivals of business aircrafts inmajor domestic airports■ Forecast of air passenger demand by route
Within Asia/
Pacific(Times)

6,600

6,200
6,000
5,800
5,600

0

7.1%

Within Europe

3.9%

Within North America

2.2%

Asia/Pacific-Europe

4.3%

Europe-Middle East

6.3%

Europe-North America

2.4%

Within Latin America

5.8%

Asia/
Pacific-Middle East

6.6%

Within CIS andinternational flights

4.5%

0.0
2011

2012

2013

2014

2015

Source: “Performance of Business Aircrafts in Japan in 2014” by the Japan Business Aviation Association (JBAA) Prepared with data extracted from the“Performance of Business Aircrafts in Japan in 2015”

We strive to collect information andput our efforts into projects in which
we are able to commit ourselves.
■ Promotion of businesses at regional airports

5.6%

Within China

6,400

Hotel JAL City Haneda
Tokyo West Wing

AirportKansai, Osaka
SendaiTakamatsu
Kobe
Fukuoka
7 airports in Hokkaido including New Chitose
Hiroshima, etc.

0.5

1.0

Demand for routes
within Asia andwithin China increases

Actual figures for 2014

Hangar at Hiroshima Heliport

Increase from 2015 to 2034

1.5

2.0

2.5

3.0

RPK (trillion passenger-kilometers)
Source: ”Worldwide Market Forecast 2015-2034” by Japan Aircraft Development Corporation

Solar panel on the rooftop of hangar in Kagoshima Airport

We also actively work with businesses
at regional airports.
ANNUAL REPORT 20178

Special
Topic

Project Report— Efforts in Area Heating and Cooling Business —We support aviation in Tokyo International Airport
through area heating and cooling service
Tokyo International Airport is used by many people every day, not only for sightseeing and business trips, but also
by people working within the airport area.
Tokyo Airport Heating & Cooling Co., Ltd., our group company, provides “heat,” which is one of the important
infrastructures that is the underlying basis for airport function (just like electricity, communication andwater supply and sewage), to support the smooth and comfortable operation of Tokyo International Airport.
In specific, we offer heat and cold energy for heating and cooling to Passenger Terminals No. 1 and No. 2 andthe multi-purpose building of our company. For airport-related facilities including hangars, maintenance plants,
and in-flight meal plant, we not only provide heating and cooling but alsooffer thermal sources used for special purposes.

Provided area
Approx.
ha100

total floor area

(About the size of 21 Tokyo Domes*)

Haneda Excel Hotel Tokyu
Passenger Terminal No. 2* Tokyo Dome is about 4.7ha large.

East Cargo Terminal

Underground passageway

Keikyu Line
Haneda Airport
Domestic Terminal sta.

Tokyo Monorail
Haneda Airport
Terminal 2 sta.

West Cargo Terminal

Passenger Terminal No. 1

Energy Center

Booster pump room
Provided to
Pipeline route
CoolingHeating

9

AIRPORT FACILITIES CO., LTD.

Tokyo Monorail Haneda Airport
Terminal 1 sta.

Tokyo Monorail
Shin Seibijo sta.

Area heating and coolingwith high efficiency andenvironmental friendlinessWe supply heat by concentrating facilities in one location rather than installing thermal source facilities forheating and cooling at each building to generate energy-saving effects and hold down CO2 emission. With
this, we contribute to preventing global warming andenvironmental preservation, and also effectively utilize
the limited premises of the airport.

We commit ourselves
to stable supply of heat

VOICE

Through the concentrated operation and management of the heating and cooling system at one
place, we realize safe and efficient operation 24 hours a day, 365 days a year, to support comfortable airport infrastructure.
We implement checkups, maintenance and renewal of facilities according to plan, from theperspectives of maintaining stable supply, economical efficiency and environmental friendliness.
We recently renewed our chiller to one with higher efficiency, and are also renewing boilers.
We continuously commit ourselves in stable supply of heat to contribute in the maintenance of
airport infrastructure.
Control room:
The heat energy environmentof the entire area is managed
24 hours a day in day and night
shifts.

Core base of Area Heating & Cooling Business: Energy Center(Tokyo Airport Heating & Cooling)

Energy-saving high-efficiency
chiller: We actively use highlyefficient chillers to further
promote our environmental
responsiveness.

Meeting on checkups, maintenance and renewal of facilities:
We commit ourselves to stablesupply of heat through close
communication and team play.

ANNUAL REPORT 201710

Outline of Consolidated Financial Statement and the Forecast on the Performance andDividend Next Year
Outline of Consolidated Financial Statement(¥ Million)❶
21,662
22,18020,697

FY ended March 31, 2016
FY ended March 31, 2017

❷
3,825

3,860
2,944

FY ending March 31, 2018 (Outlook)

❸
3,492
3,640
3,173

1,935

Net sales

Operating income

Ordinary income

❹
2,151
2,310

Profit attributable toowners of parent

Outlook for the next term
We expect increases in net sales and operating income for the fiscal year
ending March 2018, with the continuous improvement of the state of tenants
moving in at Tokyo International Airport, operation of facilities in Kitakyushu
and Sendai Airports, and the commencement of water supply and drainage
business in New Chitose Airport.

Outline of Consolidated Balance Sheet(¥ Million)

Total assets

85,214Current assets

16,567

1 Total assets

87,580Current liabilities

Current assets

8,462

19,216

Non-current
liabilities

Non-current
assets

68,647

Net assets

51,644As of March 31, 2016
11

AIRPORT FACILITIES CO., LTD.

Current liabilities

8,556
Non-current
liabilities

2

25,60825,107

Non-current
assets

68,363Outline of fiscal year ended March 2017
1 (Net sales) In addition to the improvement of the state of tenants moving
in at areas near Tokyo International Airport and Kansai International Airport,
the opening of Haneda Asahi-Cho Hotel, and operation of the solar power
plant in Mizunami City, Gifu Prefecture, there were stable growth of the area
heating and cooling business at Tokyo International Airport, solid growthof water usage according to an increase in the number of passengers,
and increase in the sales of a subsidiary in Singapore, resulting in a 4.6%
increase from the previous term.
2 (Operating income) In addition to sales increase in each business segment,
there was a decline in electricity and fuel gas prices, resulting in a 29.9%
increase from the previous term.
3 (Ordinary income) Although there was a decrease in commission fees andan increase of provision for removal costs, ordinary income increased 10.0%
from the previous term mainly because of an increase in operating income.
4 (Profit attributable to owners of parent) With the increase in ordinary
income, profit attributable to owners of parent increased 11.1% from theprevious term.

Net assets

53,415

As of March 31, 2017

Financial position as of March 31, 2017
(Total assets) Total assets increased by ¥2,365 million, mainly due toincrease in the leased assets of a subsidiary in Singapore.
2 (Liabilities) Liabilities increased by ¥594 million with increase in guarantee
deposits accompanied by the moving in of tenants.
3 (Net assets) Net assets increased ¥1,770 million mainly due to an increase inretained earnings, resulted in increase of equity ratio to 58.7% (0.2 points).
1

3

Outline of Consolidated Cash Flow

1 Net

cash provided by operating activities was ¥3,024 million(compared to ¥809 million in the previous term). This is attributable
to an increase in income before income taxes and a decrease inoperating loans.
2 Net cash used in investment activities was ¥3,048 million (comparedto ¥2,453 million in the previous term). This is attributable topurchase of non-current assets.
3 Net cash used in financial activities was ¥137 million (compared tothe ¥1,731 million of net cash provided in the previous term). This ismainly attributable to payments of long-term debt.
4 As a result, cash and cash equivalents as of March 31, 2017 decreased¥260 million to ¥5,713 million.

(¥ Million)
3 Cash flows

1 Cash flowsfromfinancing activities

fromoperating activities

3,024-3,048-137-100
2 Cash flows

5,974

from
investing activities

Effect ofexchange ratechange on
cash andcash equivalents

Cash andcash equivalents
at beginning of ’17/3

5,713

4 Cash andcash equivalents
at end of ’17/3

Outlook for consolidated business results and dividend
for the year ending March 31, 2018

Changes in Major Financial Indicators
Equity Ratio

58.7%

Outlook of Business Results and Dividend
for the Next Term

EBITDA + recovery

6.1+ 0.2 points year on year¥
billion+ 19.0 % year on year

As a result of the increase of total assets by¥2,365 million (2.8%) and equity capital by¥1,549 million (3.1%), the equity ratio increased
by 0.2 points.

EBITDA + recovery increased by 19.0% fromthe previous term, with the recovery of operating income before depreciation and recovery
from overseas finance.

Net sales¥22,180 million (+ 2.3% year on year)

Operating income¥3,860 million (+ 0.9% year on year)

Ordinary income¥3,640 million (+ 4.2% 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 201712

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

Operating income (¥ Million)

30,0004,000

20,00021,067

20,971

21,111

20,697

21,6620

2013/3
Ordinary income (¥ Million)
4,000
3,490

2014/3

2015/3

2016/32017/3

3,090

3,164

3,173

3,492

0

0

2013/3

2014/3

2015/3

2016/3

3,166 3,222

3,093

1,980

3,433

2014/3

2015/3

2016/32017/347,02647,99850,71551,64453,415

2013/3

2014/3

2015/3

2016/32017/3

0.450

0.481

0.466

2013/3

Debt to equity (Times)
0. 3602013/38,000

5, 341

2014/3

2015/3

2016/32017/3

1,935

2,151

1,092

2014/3

2015/3

2016/32017/390,00073, 316

77,621

84, 27085, 21487, 580

2013/3

2014/3

2015/3

2016/32017/3

62. 2

59.9

58. 3

58. 5

58.7

2013/3

2014/3

2015/3

2016/32017/3

3.91

4. 24

2016/32017/360,00030,0000Equity ratio (%)
80
60
40
20
0

6

0

5,443

5, 367

5,176

AIRPORT FACILITIES CO., LTD.

3.91

3.15
2. 37

2013/3

2014/3

2015/320
10

2013/3

1, 505

Annual dividend (¥: left axis) /Payout ratio (consolidated) (%: right axis)
6,161

4,000

13

2017/3

2

EBITDA + recovery (¥ Million)0

2016/3

2013/3
Total assets (¥ Million)

4

0. 3490

2015/3

ROE (%)

0. 6
0. 4

Depreciation expense

3,048 3,503

20,0000. 2

2014/30

2,973 3,551

40,0000

2013/3
1,781

2,000

2017/3

Net assets (¥ Million)
60,000

2,944

1,000

Business investment in plant and equipment/Depreciation expense (¥ Million)
9,000
7, 527
Business investment in plant and equipment
3,000

3,165

Profit attributable to owners of parent (¥ Million)

2,000

6,000

3,498

2,000

10,00003,825

3, 362

2014/3

2015/3

2016/32017/3

0

12.00
34.8
2013/3

12.00
56.7
2014/312.00
41. 2
2015/3

Annual dividend

Payout ratio

12.00

13.00

32.0
2016/331. 2
2017/3100
50
0Corporate Governance
Basic Philosophy

Executives (As of June 29, 2017)

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

Managing Director

Tomoyuki Takahashi
Hiroshi Maruyama
Toshitaka Watanabe
Toshiaki Norita
Toshiyuki Nagayoshi
Hiroyuki Hoshi
Kosei Ashikaga
Kazuo Katahira
Keisuke Komatsu

Director and SeniorCorporate Officer

Shigeo Tamura

External Director
External Director

Shigeyuki Takemura
Tadao Nishio

External Director(Independent Officer)

Takehiko Sugiyama

External Director(Independent Officer)

Kayo Aoyama

Full-time Statutory Auditor
Full-time Statutory Auditor

Mineo Tsuguchi
Kazuhiko Muraishi

Statutory Auditor(Independent Officer)

Akihiko Shiba

Statutory Auditor(Independent Officer)

Satoshi Iwamura

Senior Corporate Officer

Hiroki Osawa
Yukihiko Takada
Minoru Kitajima
Hiroshi Hokazono
Keiji Fukumoto
Ryuichi Yasuda

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

President and CEO

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

Executive Vice President

common benefit of our shareholders.

Executive Vice President
Senior Managing Director
Senior Managing Director

We maintain the system where adequate business judgment and management supervision is constantly
ensured, by regularly holding the Board of Directors meeting and Board of Corporate Auditors

Directors

Structure of Organization

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

Supervision

14 directors. Also, based on the criteria

Diagram of Internal Control System
General Meeting of Shareholders
Accounting Auditors

2 independent external directors. In

making, etc. Furthermore, we strive

control system shouldered by the
Audit Office monitoring our businessactivities, Compliance Committee, andRisk Management Committee.

President
Board ofCorporate
Officers

Risk Management
Committee
Audit
OfficeManagers
Meeting
Departments and Consolidated Subsidiaries

Bureau:General Affairs
Department,
etc.

Corporate Officers

maintaining and enhancing the internalBusiness Execution

appropriateness and efficiency byCompliance Committee

Board of
Executive
Directors

Internal Control

Officer System aiming at rapid decision-

Corporate Auditors

Board of Directors

addition, we adopt the Corporate

to ensure managerial compliance,

Board ofCorporate Auditors

Managing Director
Managing Director

Senior Corporate Officer
Senior Corporate Officer
Corporate Officer
Corporate Officer
Corporate Officer

ANNUAL REPORT 201714

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:

110

Mizuho Bank
The Bank of Tokyo-Mitsubishi UFJ
Sumitomo Mitsui Trust Bank(Consolidated as of March 31, 2017)

Sumitomo Mitsui Banking Corporation

Stock Information (as of March 31, 2017)
Sock 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

19.16

10,521

19.16

Shareholder

Total Number of Shares Issued:

54,903,750

ANA HOLDINGS INC.
Development Bank of Japan Inc.

6,920

12.60

Number of Shareholders:

6,455

Kokusai Kogyo Co., Ltd.

1,924

3.50

100 shares

MLI FOR CLIENT GENERAL OMNI NONCOLLATERAL NON TREATY-PB

1,574

2.86

Share Unit Number

Composition of Shareholders
Japanese Government andLocal Public Bodies

0.00%

Stock Price and Trading Volume (Monthly)
The Company (Treasury Stock)

5.89%

600
Individuals

Securities Companies

15.08%

0.73%(¥) Stock price

800

Foreign Investors

12.42%

400
200
0

Financial Institutions

Other
Japanese Corporations

45.06%

20.81%

16/4

16/5(Thousand shares) Trading volume

1,500
1,000
500
0

16/6

16/7

16/8

16/9

16/10

16/11

16/12

17/1

17/2

17/3