WE SUPPORT AVIATION INDUSTRYANNUAL REPORT 2018Year Ended March 31, 20182017.4.01 2018.3.31

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-

CONTENTS
Message from the President &Highlights of Business Result. . . . . . . . . . . . . . 1
Business Outline. . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Recent Efforts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Special Topic: Project Report—Environmentally-conscious efforts—. . . . . . . . 9

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

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

With the Medium-term Manag
to improve our corporate valu
Business environment, business results and the dividend forthe fiscal year ended March 2018
In the aviation industry, airline companies are enjoying favorable
business results partly due to the booming demand in Japanand abroad, including inbound demands. While continuing
efforts for improving their cost competitiveness, Japanese airline
companies are also working on the introduction of advanced
equipment and reinforcing LLC business.
Under such economic situation, the business of our Group for
the fiscal year ended March 2018 resulted in increased net sales
and operating income compared to the previous term, which
was achieved with the steady increase in the sales at the Tokyo
International Airport. We were able to exceed the goal set for thesecond fiscal year in the Medium-term Management Plan.
Based on the above, the year-end dividend is ¥7.0, as wasforecasted at the beginning of the term, considering the
mid-term business outlook. In addition, we plan to offer anannual dividend of ¥14.0 per share for the fiscal year ending
March 31, 2019. We continue with our efforts to ensure stable
return to shareholders.

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.

22.7

¥

billion+ 5.2% year on year

Operating income

4.1¥

billion+ 7.3% year on year

Business Result

ement Plan in mind, we strive
e and shareholder value.
Business development during the fiscal year ended March 2018
Our Group has been working on the reutilization of facility space,including the renovation of existing facilities in the Tokyo International Airport, our business base, so as to fulfil the customer
needs. We have also started providing apartments for thoseworking at the airport as a business to cope with the expected
increase in airport staff along with the increase in the number ofthe users of the Airport.
We are also operating a solar power plant near the Tokyo
International Airport, which is one of the largest-of those locatedin central Tokyo. Our group focuses on ESG and develops environmentally-friendly business.
As for local airports, we have also newly provided a hangar forsmall aircrafts in Sendai Airport, crew training facilities in Kagoshima
Airport, and aviation-related facilities in New Chitose Airport.
On the other hand, as for business abroad, we are providing
maintenance facilities for MRO business operators who maintainaircraft and are leasing facilities for crew training in Singapore
Seletar Airport. Further, we have newly acquired a helicopter
maintenance facility in Langley Regional Airport in Canada andhave started leasing them.

Ordinary income

3.7¥

billion+ 6.7% year on year

Profit attributable to ownersof parent

2.2¥

billion+ 3.2% year on year

Business results

Future outlook
We will further be engaged in facility space reutilization throughthe renovation of existing facilities and providing apartments
for airport staff in Tokyo International Airport and the regions
nearby. As for local airports and areas abroad, we will continuously construct and acquire aviation-related facilities fulfilling
customer needs.
We will also try to further expand our business area, including
environmentally-friendly undertakings such as solar power
generation business, while also considering the acquisition of
new hotels in Kyoto, a city where tourism demand is notably
high.
Based on the above, we expect increased net sales and operating income for the fiscal year ending March 2019, allowing us toachieve the goals set forth for the final year of the Medium-termManagement Plan. We will continuously strive to further expand
our business based on the Medium-term Management Plan, andto ensure stable development of operations in order to increase
the corporate value and shareholder value of our Group.

Increase in net sales and operating
income for three consecutive terms
after bottoming out in the fiscal year
ended March 2016

〈 Initial plan 〉

14.0

EBITDA + recovery

6.7

¥

¥

+ ¥1.0 year on year

+ 9.3% year on year

billionNumerical targets

Year
2017/3

2018/3

2019/3

Net sales

21.6

22.0

22.5

Operating income

3.5

3.8

3.9

EBITDA + recovery

6.1

6.4

7.0

Profit attributable toowners of parent

2.1

2.1

2.2

〈 Results & outlook 〉 (¥ Billion)

21.66
Net
sales
[+0.01]*

3.82

Cash dividends per share(¥ Billion)

Operatingincome[+0.27]2017/3(Results)

22.79

23.69
Net
sales
[+1.15]Net
sales[+0.72]

4.10

4.18

Operatingincome[+0.30]Operatingincome[+0.22]

2018/3(Results)

2019/3(Forecast)* Figures in [ ] shows comparison
with the numerical target

ANNUAL REPORT 20182

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(‘18/3)

Area Heating &Cooling Business

14.1%

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

Net Salesby Business
Segment(’18/3)

Real EstateBusiness

Major business investments (‘18/3)
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)

74.4%

Overseas location

12 Airports where we deploy our businessOutside Airport/
Overseas

12.8%

Other regional
airports

3.9%

Osaka
International
Airport1.2%

KansaiInternational
Airport

2.0%

New Chitose

Central Japan Int’l(Centrair)

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

Kobe
Tokyo Int’l Airport,
Tokyo Metropolitan area

Kitakyushu

Net Salesby Region(’18/3)

Tokyo
International
Airport80.1%

KagoshimaNaha

Net sales/Operating income (¥ Million)
Net sales

20,000Operating income

15,00010,0000AIRPORT FACILITIES CO., LTD.

Singapore:
Seletar airport

Kansai Int’l
Hiroshima Heliport

Fukuoka

5,000

3billion(+5.1% )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

11.5%

16.9

¥

2016/32017/3

2018/3The improvement of the state of tenants moving in at Tokyo International Airport, full-year
operation of Hotel JAL City in Haneda Asahi
Cho and increase in the sales of a subsidiary in
Singapore contributed to increases in net sales
and operating income.

Area Heating& Cooling BusinessNet sales(‘18/3)

3.2¥

billion(+0.3% )Core business
Provision of cooling and heating functions at Tokyo International Airport (areaheating and cooling business)

Energy Center

2.6

Water Supply & Drainage Net sales¥
Service and Other Business (‘18/3)

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 (‘18/3)
Boiler renewal work

High-efficiency Electric Turbo Chiller

billion(+13.0% )Major companies
Airport Facilities Co., Ltd.

Shared Communication Service

Major business investments (‘18/3)
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

2016/32017/3

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

2018/3

Although depreciation expense decreased with thesales in the reclaimed land area offshore Tokyo International Airport, consistent with the same period in a
typical year, there were increases in electricity and gas
prices and additional repair expenses, resulting in net
sales increase and operating income decrease.

Net sales

3,000

Operating income

2,000
1,000
0
2016/32017/3

Net sales and operating income increased due tothe steady sales of water supply and drainage inline with an increase in the number of incoming andoutgoing passengers and increase in water supply tovarious construction works held within the airport,
and the start of water supply and drainage management operations in the New Chitose Airport.

2018/3

ANNUAL REPORT 20184

Recent Efforts [Part 1]

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

Efforts in the Tokyo International Airport and regions near the airport
Progress of the “Development of Zone 1 of the Former
Haneda Airport Ground (Phase I)”
Haneda Mirai Development Corporation, sponsored by our company, hasconcluded a business contract in May 2018 with the Ota-ku Government on
the “Development of Zone 1 of the Former Haneda Airport Ground (Phase I),”
starting the development and operation of bases for leading-edge industry
and for the transmission of “Cool Japan.”By fully exerting the potential of this area that is the gateway to Tokyoand ultimately to Japan from different cities in Japan and cities all over theworld, we aim to develop a town that provides new experience and value
towards the future.

From the Traffic Square (image)Phase I project site

Traffic Square
Tenkubashi Station
Bird-eye view of the entire area (image)
5

AIRPORT FACILITIES CO., LTD.

City planning park, etc.

Reutilization of facility space by renovating the existing properties
In the Tokyo International Airport, we are working on the reutilization of
space through the renovation of existing properties, for instance establishing crew training facilities and in-flight meal plants within the existing facilities. Utilizing our knowledge and skill, we are making effort to reduce vacant
spaces while also trying to provide facilities that fulfill customers’ needs.
Simulator

Large-scale hangar (Tokyo International Airport)

Starting the provision of our fourth apartments
The construction of Sky Residence Kawasaki Daishi (Kawasaki City, Kanagawa
Prefecture), apartments for those who work at the airport, was completed in
March 2018.
This facility was being constructed as apartments for the increased number ofstaff who work at the airport, in line with increased aircraft takeoff/landing capacity
and the expansion of international flight areas in the Tokyo International Airport,
and will be used mainly as the apartments for the employees of the ANA Group.

Sky Residence Kawasaki Daishi

Entrance

Completion of one of the largest-scale solar power plants incentral Tokyo
Our company has been working on the construction of a solar power plantin Heiwajima, Ota-ku, and the “TRC Distribution B Bldg. rooftop solar power
plant” was completed and stated operation in January 2018.
Our company has been engaged in solar power generation projects utilizing facilities owned by our company, idle lands and venues outside theairports. This power station is a facility utilizing the rooftop of “Distribution B
Bldg.,” a building held by Tokyo Ryutsu Center Inc.

Solar panels

TRC Distribution B Bldg. rooftop solar power plant
ANNUAL REPORT 20186

Recent Efforts [Part 2]
Efforts at regional airports
Starting the provision of a small aircraft hangar

Starting the provision of crew training facilities(Sendai Airport)(Kagoshima Airport)

The construction of “Sendai Airport No.3 small aircraft
hangar” was completed inJuly 2017.
This hangar was newly
constructed on request fromthe All Nippon Helicopter Co.,
Ltd., for its resumed operationin Sendai Airport, one of thecompany’s activity bases.
In addition to its increased
seismic capacity regarding its
building structure, ensuring

The construction of “Kagoshima Airport flight simulator building” was completed in December 2017. This facility is being rented to Japan Air Commuter Co., Ltd. (JAC), operating flights between local cities and remote islands
based in Kagoshima Airport, and started operation in April 2018.
The full flight simulator (FFS) installed by JAC in this facility is for the latest ATR-model turboprop aircraft of JAC, which will be the first to be introduced in Japan.

Sendai Airport No.3 small aircraft hangar

the safety of people’s lives,
this hangar also has improved function as a hangar,
allowing it to serve immediately as a base for news coverage even when a disasteroccurs.

Runway access taxiway
7

AIRPORT FACILITIES CO., LTD.

Kagoshima Airport flight simulator buildingEfforts abroad
Starting the provision of a hangar for GSE vehicles

Starting the leasing of a helicopter maintenance facility(New Chitose Airport)(Langley Regional Airport, Canada)

The construction of “New Chitose Airport hangar for GSE* vehicles” wascompleted in December 2018. This hangar was newly built upon request fora facility that can resist the winter snowfall, in line with the start of airport
ground handling business for Fuji Dream Airlines Co., Ltd. (FDA) by SAS Co.,
Ltd., which is a fully-owned subsidiary of Suzuyo & Co., Ltd. that operates
airport ground handling business mainly in Mt. Fuji Shizuoka Airport andPrefectural Nagoya Airport.
* GSE (Ground Support Equipment) vehicle: collective term for equipment used for ground handling business (equipment used for groundsupport in airport, including cargo carts and toeing cars)

New Chitose Airport hangar for GSE vehicles

Our locally-incorporated company AFN PROPERTIES LTD. (AFN) acquired ahelicopter maintenance facility in Langley Regional Airport in Canada, in
October 2017, and started leasing it to Vector Aerospace Helicopter Services Inc.
Our Group is already engaged in business in Singapore, and this is thesecond project of providing facilities at overseas airports for our company.
We will continuously be engaged in business aiming to acquire, construct and lease aviation-related facilities abroad.

Helicopter maintenance facility at Langley Regional Airport, Canada
ANNUAL REPORT 20188

Special
Topic

Project Report— Environmentally-conscious efforts —Our company is also being engaged in environmentally-friendly businessas a part of ESG (environmental, social and governance) efforts
Since the Great East Japan Earthquake in 2011, reliance on fossil fuels is growing in Japan. Realizing both the CO2 emission control
and the stable supply of energy is an important social issue.
In such context, our company has been actively advancing the solar power generation business that makes effective use of the rooftops ofaircraft maintenance hangars and venues outside the airport, aiming to further utilize renewable energy as a part of ESG efforts.
Our company will continuously commit itself to conducting environmentally-conscious management.

January 2016

March 2014
October 2013

Kagoshima Airport No.1/No.2 hangar
Operation of the first solar power generation
facility of our company
We have constructed a solar power generation facility utilizing the
10,000 m2-wide land possessedby our company near Narita International Airport. The annual
power generation of this facility
is approximately 680,000 kWh,which is equivalent to the annual
power consumption of about 200
households.

9

AIRPORT FACILITIES CO., LTD.

The rooftop of the hangar our company possesses at Kagoshima Airport is utilized for solar power generation business. This facility generates approximately 300,000 kWh per
year, which is equivalent to the annual power consumption of about 80 households.

January 2018

NEW

Solar power plant in Mizunami
City, Gifu Prefecture

TRC Distribution B Bldg. rooftop
solar power plantThis power station is a facility utilizing the rooftop of “Distribution B Bldg.,” a building held by Tokyo Ryutsu Center Inc., and is one of the largest-scale solar power stations in central Tokyo. The annual power generation of this facility is approximately 2.5 million kWh, which is equivalent
to the annual power consumption of about 620 households.

This is the first power generation plant project for ourcompany utilizing venues outside the airport. Its annual power generation is approximately 1.6 million
kWh, which is equivalent to the annual consumptionof about 480 households.

8,960 solar panels are installed

Aerial view

ANNUAL REPORT 201810

Outline of Consolidated Financial Statement and the Forecast on the Performanceand Dividend Next Year
Outline of Consolidated Financial Statement(¥ Million)❶
22,791
23,69021,662

FY ended March 31, 2017
FY ended March 31, 2018
FY ending March 31, 2019 (Outlook)

❷
4,103

4,180

❸
3,726
3,850
3,492

Operating income

Ordinary income

3,825

Net sales

❹
2,219
2,290
2,151

Profit attributable toowners of parent

Outline of Consolidated Balance Sheet(¥ Million)

Total assets

87,580Current assets

19,216

Current liabilities

8,556
Non-current
liabilities

1 Total assets

87,961

Current assets

17,70325,608Non-current
assets

68,363

Net assets

53,415

As of March 31, 201711

AIRPORT FACILITIES CO., LTD.

Current liabilities

10,050Non-current
liabilities

2

23,428Non-current
assets70,258

Net assets

54,482As of March 31, 20183

Outline of fiscal year ended March 2018
1 (Net sales) In addition to the improvement of the state of tenants moving in at theTokyo International Airport, the full-year operation of Hotel JAL City in Haneda Asahi
Cho, the rise in the number of passengers at the Tokyo International Airport and theincrease in water supply to various construction works held within the airport, there
was also increase in the sales of a subsidiary in Singapore, resulting in a 5.2% increase
from the previous term.
2 (Operating income) While there had been a rise in electricity and gas prices andadditional repair expenses, there were sales increases in each business segment
and a decrease in depreciation expense in the Area Heating and Cooling Business,
resulting in a 7.3% increase from the previous term.
3 (Ordinary income) Although there was foreign exchange loss and an increase inremoval cost of property, plant and equipment, ordinary income increased 6.7%
from the previous term mainly because of an increase in operating income and adecrease in provision for removal costs.
4 (Profit attributable to owners of parent) While the loss on retirement of non-current
assets increased, profit attributable to owners of parent increased 3.2% from theprevious term with the increase in ordinary income.
Outlook for the next term
We expect increases in net sales and operating income for the fiscal year ending March
2019, due to the continuous improvement of the state of tenants moving in at the Tokyo
International Airport, start of the provision of apartments in areas near the airport, newoperation of aviation-related facilities in local airports including New Chitose, Sendai,
and Kagoshima Airports, expectation of full-year contribution by the solar power
generation business started in Heiwajima, Ota-ku, and other new projects scheduled.

Financial position as of March 31, 2018
1 (Total assets) Total assets increased by ¥381 million, mainly due to the completion of
the construction of solar power generation facilities and apartments.
2 (Liabilities) Liabilities decreased by ¥685 million with payment of long-term
debt, etc.
3 (Net assets) Net assets increased by ¥1,067 million due to an increase in valuationdifference on mark-to-market available-for-sale securities and an increase in retained
earnings, resulting in an increase of the equity ratio to 59.4% (0.7 points).

Outline of Consolidated Cash Flow

1 Net(¥ Million)❶ Cash flows
fromoperating activities
Effect ofexchange ratechange on
cash andcash equivalents-5,383

7,147-2,9095,713❷ Cash flowsfrominvesting activities

40❸ Cash flowsfromfinancing activities

4,608❹ Cash andcash equivalents
at end of ’18/3

Cash andcash equivalents
at beginning of ’18/3

59.4%

Outlook of Business Results and Dividend
for the Next Term
Outlook for consolidated business results and dividend
for the year ending March 31, 2019

Changes in Major Financial Indicators
Equity Ratio

cash provided by operating activities was ¥7,147 million(compared to ¥3,024 million in the previous term). This is mainly
attributable to an increase in income before income taxes andprogress in the collection of operating loans.
2 Net cash used in investing activities was ¥5,383 million (comparedto ¥3,048 million in the previous term). This is mainly attributable tosignificant increase in expenses compared to the previous term due
to purchase of non-current assets including solar power generation
facilities and apartments.
3 Net cash used in financing activities was ¥2,909 million (comparedto the ¥137 million in the previous term). This is mainly attributableto purchase of treasury stock and payment of long-term debt.
4 As a result, cash and cash equivalents as of March 31, 2018 decreased¥1,105 million to ¥4,608 million.

EBITDA + recovery

6.7+ 0.7 points year on year¥
billion+ 9.3 % year on year

As a result of the increase of total assets by¥381 million (0.4%) and equity capital by ¥840
million (1.6%), the equity ratio increased by 0.7
points.

EBITDA + recovery increased by 9.3% from theprevious term, with the increase of operating
income before depreciation and recovery fromoverseas finance.

Net sales¥23,690 million (+ 3.9% year on year)

Operating income¥4,180 million (+ 1.9% year on year)

Ordinary income¥3,850 million (+ 3.3% 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.

SearchHome

Investor Relations

ANNUAL REPORT 201812

Financial Highlights (Five years)
Net sales (¥ Million)
30,00020,00020,971

21,111

20,697

21,662

Operating income (¥ Million)
3,498

22,7910

2014/3
Ordinary income (¥ Million)
3,090

2015/3

2016/32017/3

2018/3

3,164

3,173

3,492

3,726

0

2014/36,000

2015/3

2016/32017/34,504

3,048 3,503

2015/3

2016/32017/3

2018/347,99850,71551,64453,41554,482

2014/3

2015/3

2016/32017/3

2018/3

0.450

0.481

0.466

0.443

2014/3

1,980

3,433

20,000Debt to equity (Times)
0. 6

0. 3602016/32017/3

2018/377,621

84, 27085, 21487, 580

87,961

2014/3

2015/3

2016/32017/3

2018/3

59.9

58. 3

58. 5

58.7

59.4

2014/3

2015/3

2016/32017/3

2018/3

3.91

4. 24

4. 28

2016/32017/3

2018/330,0000Equity ratio (%)
80
60
40
20
0

6

0

2015/3

2016/32017/3

2018/3

6,161

6,737

5,443

5, 367

5,176

2014/3

2015/320
10AIRPORT FACILITIES CO., LTD.

2. 37

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

4,000

2014/33.15

402014/3

1, 505

ROE (%)EBITDA + recovery (¥ Million)

13

2015/3

2015/360,0002

02, 2191,092

90,000

0. 2

8,000

2,151

2014/3
Total assets (¥ Million)

3,547

40,000

0. 4

1,935

0

Depreciation expense

Net assets (¥ Million)0

2018/32,000

2018/3

2,973 3,551

3,093

3,000

60,0002017/3

2014/3

1,000

Business investment in plant and equipment/Depreciation expense (¥ Million)
9,000
7, 527
Business investment in plant and equipment0

2016/3

2,944

Profit attributable to owners of parent (¥ Million)

2,000
0

4,103

3,165

2,000

10,000

4,000

3,825

4,000

2015/3

2016/32017/3

2018/3

0

12.00
56.7
2014/312.00
41. 2
2015/312.00
32.0
2016/3

Annual dividend

13.00

Payout ratio

14.00

100
50

31. 2
2017/332. 3
2018/30

Corporate Governance
Basic Philosophy

Executives (As of June 28, 2018)

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

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 PresidentManaging Director

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

Director andSenior Corporate Officer

Shigeo Tamura

External Director
External Director

Toyoyuki Nagamine
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
Hiroshi Hokazono
Ryuichi Yasuda
Takahiro Hama
Takashi Yasuda
Atsuo Ichise

Executive Vice President
Senior Managing Director

Structure of Organization

Senior Managing Director

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

Diagram of Internal Control System

15 directors. Also, based on the criteria

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

General Meeting of Shareholders
Accounting Auditors

Board of Directors

addition, we adopt the Corporate

Board of
Executive Directors

making, etc. Furthermore, we strive
appropriateness and efficiency bycontrol system shouldered by the
Audit Office monitoring our businessactivities, Compliance Committee, andRisk Management Committee.

Management
Strategy Council

President

Risk Management
Committee
Audit
OfficeOverseas Investment
Management Council
Board ofCorporate Officers
Departments and Consolidated Subsidiaries

Bureau:General Affairs
Department,
etc.

Corporate Officers

maintaining and enhancing the internalBusiness Execution

to ensure managerial compliance,

Enlarged Board of
Executive Directors

Compliance Committee
Internal Control

Officer System aiming at rapid decision-

Corporate Auditors

2 independent external directors. In

Board ofCorporate Auditors

Managing Director
Managing Director

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

ANNUAL REPORT 201814

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:

116

Mizuho BankMUFG Bank
Sumitomo Mitsui Trust Bank(Consolidated as of March 31, 2018)

Sumitomo Mitsui Banking Corporation

Stock Information (as of March 31, 2018)
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:

6,719

1,605

3.03

Share Unit Number

100 shares

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

1,335

2.55

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

6.09%

Securities Companies

15.07%

0.64%

Foreign Investors

500
013.65%
Other
Japanese
Corporations

43.06%

Financial Institutions

21.49%

17/4

17/5(Thousand shares) Trading volume

2,000
1,500
1,000
500
0

17/6

17/7

17/8

17/9

17/10

17/11

17/12

18/1

18/2

18/3