W E S U P P O R T AV I A T I O N I N D U S T R Y

Corporate Profile
Corporate Name: Airport Facilities Co., Ltd. (AFC)Main Banks:

Development Bank of Japan

Established:

February 1970

Resona Bank

Capital:6,826.10 million yen

Mizuho Bank

Employees:

111 (Consolidated as of March 31, 2015)

The Bank of Tokyo-Mitsubishi UFJ
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank

Stock Information (as of March 31, 2015 )Stock Listings:
Tokyo Stock Exchange (TSE) 1st Section(Ticker Code: 8864 )Major Shareholders

Total Number of Shares Authorized:
124,800,000

Number of Shares
Owned (thousands)

Ratio of
Shareholding (%)

Japan Airlines Co., Ltd.

10,521

19.16

ANA HOLDINGS INC.

10,521

19.16

Total Number of Shares Issued:
54,903,750

Development Bank of Japan Inc.

6,920

12.60

KOKUSAI KOGYO HOLDINGS CO., LTD.

1,939

3.53

Number of Shareholders:
6,905

RBC ISB A / C DUB NON RESIDENT - TREATY RATE

1,730

3.15

Composition of Shareholders

Shareholder

The Company (Treasury Stock)

5.91%

Foreign Investors

900

300
0

Financial
Institutions

Other JapaneseCorporations

44.66%

Stock price

600

Individuals
15.79%

12.64%

Year Ended March 31, 2015

Stock Price and Trading Volume (Monthly)(¥)

Securities
Companies
0.87%

ANNUAL REPORT 201520.13%

’14/4

’14/5

’14/6

’14/7

’14/8

’14/9

’14/10’14/11’14/12

’15/1

’15/2

’15/3

(Thousand shares) Trading volume

2,000
1,500
1,000
500
0

AIRPORT FACILITIES CO., LTD.
Sogo Building No. 5, 1-6-5 Haneda Airport, Ota-ku, Tokyo 144-0041
TEL: 81-3-3747-0251 FAX: 81-3-3747-0225

WWW.afc.jp/english/

AIRPORT FACILITIES CO., LTD.

Message from the President
Our Mission

The amount of air traffic at Tokyo International Airport increased to 447,000 arrivals and departures annually by March
2014, and the number of passengers using the airport is increasing significantly, mainly through international flights.

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

However, further reinforcement of airport functions is being required, as seen in the plan to add a further 39,000 arrivals
and departures, due to increasing demand for international flights with the government policy on increasing thenumber of tourists from abroad visiting Japan and following the decision on hosting the Olympic and Paralympic
Games in Tokyo.

Corporate Philosophy

In the airlines industry, airline companies are now placing efforts on cost reduction under the severe market
environment expected in the future, such as reduction of demand due to a long-term decline in the population of the

1 We will continually advance ahead of thedemands and changes of the times byproducing creative innovation and we will
endeavor to raise corporate value.

domestic market or the entry of LCCs in both domestic and international lines. The long-term issues for the entire
industry also include a lack of pilots and other crew expected in the future.
Under such conditions, Airport Facilities Co., Ltd. has been offering facilities according to the expansion of airport

2 We make effort to be a reliable and trusted

capacity, such as providing factories for meals served on international flights at Tokyo International Airport, andcompany that always provides value which
satisfies customers and complies with public
expectation.

completed the third apartment building in Otorii for those who work at the airport at the end of last year. This year, thecompany is scheduling to start construction of the second hotel along the Keihin Kyuko Line, with the rise of demand

3 We will foster our staff, and encourage andfor accommodations according to the increase in the number of passengers. As for the problem of pilots, it is expected

reward the efforts they make and thechallenges they tackle.

that demand for training will increase in the future with the needs for bringing up personnel, and in response, thecompany is considering to offer facilities that meet the needs of airline companies, such as providing facilities for

4 As a member of civil society, we observe rules

training utilizing existing facilities.

and respect fairness.

As for overseas operations, following the provision of a hangar at Singapore Seletar Airport in March 2014 and theprovision of an engine maintenance plant newly started in December 2014, we will continuously be engaged in further
excavation of projects based on the strong demand for aviation service in Asia. Our second locally-incorporated
company was established in Canada in November 2014, which is now considering developing business in construction,acquisition and leasing of airport-related facilities.
Under the condition of an increase in demand for the manufacturing and maintenance of aircrafts in line with theincrease of worldwide demand for aviation service in the future, we will develop our business by also envisaging efforts
including those of MRO business operators in charge of related facilities and equipment maintenance of aircraft
manufacturers in Japan and abroad.
We are determined to continuously put active efforts into businesses in airports, as facilities to complement airport

President and CEO

Hiroshi Maruyama

functions, by also keeping our eyes on the trend of demand.
August 2015

CONTENTS
Message from the President
Changes in Annual Dividend per Share and Payout Ratio … 02
Business Review
Airport Facilities at a Glance ………………………………… 03
Highlights of the Previous Year’s Business Result andOutlook for the Current Fiscal Year ………………………… 05
Focus: Global presence of Tokyo International Airport increases,
toward the further reinforcement of functions……… 06
Our Business in Tokyo International Airport ………… 07

Future Business Direction …………………………………… 10
Our Website Timely Updated ………………………………… 11
Corporate Information
Subsidiary Company ………………………………………… 12

Changes in Annual Dividend per Share and Payout Ratio
We recognize the prompt return to the shareholders as top corporate priority, intending to repay the due returnto shareholders while considering various factors such as the internal reserves prepared for new business andinvestment opportunities, along with the mid- to long-term business outlook.
This policy has led to ¥6.0 year-end dividend to pay for the year ended March 31, 2015, the same as theprevious fiscal year-end, resulting in an annual ¥12.0 dividend, the same as the previous fiscal year.

Consolidated Financial Data & Industry Related Data

Dividends per share (¥)(Ten-year Summary) ………………………………………… 13

16

List of Facilities ……………………………………………… 15

12

Corporate Governance ……………………………………… 17

8

Dividends per share

Payout ratio (consolidated) (%)

Payout ratio

56.7
12.0

12.0

35.9

34.8

12.0

10.0

60

12.0

45

41.2
30

25.3

Recent Business Activities

15

4(Overseas and Regional Airports) …………………………… 09
0

0
’11/3

’12/3

’13/3

’14/3

’15/3

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

AFC Annual Report 201502

Airport Facilities at a Glance

We create and provide airport functions,
thereby contributing to the progress of the aviation industry.
We create and manage the facilities and functions indispensable to ensure the appropriate management of airports
leading up to the safety operation of airline companies.

Outside Airport

Water Supply &Drainage Service andOther Business

2.2%
Kobe Airport 1.0%

Other Regional Airports

11.1%

Area Heating &Cooling Business

15.1%

9.4%

Net Sales by
Business Segment(’15/3)

Osaka
International Airport

Real EstateBusiness

Net Sales by
Region

1.4%

73.8%

(’15/3)KansaiInternational Airport

Tokyo
International
Airport

83.7%

2.3%

Real Estate Business

Component Maintenance Building

Domestic Air Cargo Terminal (Tokyo International Airport)

Based on Tokyo International Airport (Haneda Airport), our company
constructed multipurpose general buildings, hangars, maintenance shops,
aircraft cleaning facilities, sanitary disposal plants, air cargo terminal facilities,
etc. in 12 airports in Japan and 1 airport abroad, and we lease them to airline
companies and aviation-related companies.

Osaka Int’l (Itami)

Sendai

Kobe
Tokyo Int’l Airport,
Tokyo Metropolitan area
Kansai Int’l
Hiroshima Heliport

Kitakyushu
FukuokaBusiness Review

NahaHigh-efficiency Electric Turbo Chiller

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

Runway D
Runway C
Domestic cargo area

Runway A
Runway B

offshore Tokyo International Airport

Shared Communication Service (Tokyo International Airport)

Areas covered by our local area communication network

Runway D
Runway C

The company implements the operation and management of watersupply and drainage service (water and sewerage) in facilities such as
Tokyo International Airport.

AFC Annual Report 2015

International passenger and cargo area

Former aircraft maintenance area
(1-chome district)

Water supply & drainage facilities in the reclaimed land area

03

Domestic passenger area New aircraft maintenance area

Corporate Information

Energy Center (Tokyo Airport Heating & Cooling Co., Ltd.)The heating and cooling source is generated in the Energy Center, and is
supplied to facilities within the airport site, including the facilities of ourcompany, Passenger Terminals No. 1 and No. 2 and government officebuildings.

The company developed the local area network for the airport
related companies for domestic/international passengers,
domestic/international cargoes and the new aircraft maintenance areain Tokyo International Airport, and provides extension-to-extension
call and data communication services within the airport.

Singapore:
Seletar Airport

Kagoshima

Tokyo Airport Heating & Cooling Co., Ltd., a subsidiary of our company, isengaged in area heating and cooling business in zones for domestic
passengers, domestic cargoes and the new aircraft maintenance area inTokyo International Airport.

Water Supply & Drainage Service andOther Business

Overseas location

New Chitose
AirportCentral Japan Int’l(Centrair)

Also outside the airports, our company leases office buildings, airport-related
facilities, housing complexes, etc. in areas such as the Tokyo Metropolitanarea, adjacent areas to Tokyo International Airport and the opposite shore of
Kansai International Airport.

Area Heating & Cooling Business

12 Airports where we deploy our business

Domestic cargo area

Domestic passenger area New aircraft maintenance area

Runway A
Runway B
Former aircraft maintenance area
(1-chome district)

International passenger and cargo area

AFC Annual Report 201504

Highlights of the Previous Year’s Business Result and Outlook for the Current Fiscal YearHighlights of the Consolidated Business Results for the Year Ended March 31, 2015
1

Consolidated Business Results(¥Million)(¥Million)

6,000

30,0001

Net sales

2

Operating income

3

Ordinary income

Net income

4

5,000

25,00020,971

21,111

20,0004,000

15,0003,000

10,000

2,000

3,499
3,166

3,090

3,164

1,000

5,000
0

’14/3

0

’15/3

2

Operating income increased by 9.5% from the previous termwith an increase in depreciation, increase in gas bills,
revising of water supply and drainage service fees, andother factors.

3

Ordinary income increased by 2.4% from the previous term,
due to a decrease in balance carried forward for removal
cost related to the completion of heat supply to Haneda
Airport 1-Chome District and other factors.

1,505
1,093

’14/3

’14/3

’15/3

’15/3

’14/3

Factors such as the full-year operation of the in-flight meal
factory at Tokyo International Airport, the completion of theconstruction of an apartment building for a major airline
company (Sky Residence Otorii), consolidation of thelocally-incorporated company in Singapore, and the soundbusiness development of Tokyo Airport Heating & CoolingCo., Ltd. in Haneda Airport 3-Chome District contributed toa net sales increase of 0.7% from the previous term.

’15/3
4

Consolidated Cash Flows(¥Million)

Current net income increased by 37.8% from the previous
term due to the extraordinary profits from the sale of fixed
assets and also on the rebound from the previous term
marking extraordinary loss.

6,000
3

Cash flows fromoperating activities
2

3

Cash and cash
equivalents at
end of ’15/3△2,0002

High growth rate
The number of passengers using Tokyo International Airport in 2014 increased by 5.7% from the previous year. The increase rate surpassed those of theworld’s three largest airports in terms of the number of passengers, namely Atlanta International Airport, Beijing Capital International Airport and London
Heathrow Airport.
Rank

1

Income from operating activities amounted to ¥3,478
million, with reduction in trade receivables and increases in
accrued expenses and consumption tax payable.

2

Net cash earmarked for investment amounted to ¥4,772
million, mainly attributable to the acquisition of fixed assets
such as an apartment building, hangar and machinery andequipment.

3

Income by financing activities was ¥4,500 million, mainly
attributable to the new financing by borrowing for the
purpose of business activities by overseas subsidiarycompanies.

4
5

Cash flows frominvesting activities

6△6,000

Airport (Country)

Annual passenger numbers(Thousand people)

Hartsfield-Jackson Atlanta International Airport (USA)96,178Beijing Capital International Airport (China)

86,128London Heathrow Airport (UK)Tokyo International Airport (Japan)

73,408

Corporate Information

4

Cash and cash equivalents
at end of ’14/3△4,000The number of passengers using Tokyo International Airport per year exceeded 72 million after the expansion of slots forinternational flights in March 2014, closing in on London Heathrow Airport, which is the third largest in the world.
Under the “Japan Revitalization Strategy,” which intends to take in the growth strategy of rapid-developing markets such as
those in Asia, it is expected that reinforcement of the international competitive abilities of industry and urban districts (Tokyo
Metropolitan Area), an increase in the number of visitors from abroad, and efforts for regional revitalization throughout Japan
will be even further activated by setting the 2020 Olympic Games in Tokyo as a milestone. Accordingly, it is forecast that thefunction as airports in the Tokyo Metropolitan Area, namely Tokyo International Airport and Narita International Airport, will befurther reinforced.

Business Review

1

2,000

0

Global presence of Tokyo International Airport increases,
toward the further reinforcement of functions

Cash flows fromfinancing activities

4,000
1

Focus

72,826

Los Angeles International Airport (USA)70,663

Dubai International Airport (UAE)70,475Chicago O'Hare International Airport (USA)69,999For more detailed financial statements, please refer to our website, Financial Results, on "IR Library".
Airport Facilities Co., Ltd.

Home

SearchInvestor Relations

IR LibraryFinancial Results
1

Outlook for the fiscal year ending March 31, 2016
Consolidated Business Results(¥Million)(¥Million)

30,0006,000
1

Net sales

2

Operating income

3

Ordinary income

5,000

25,00020,6704,000

20,000Year on year

15,000

−441

3,000

10,000

2,000

5,000

1,000

0

’16/3 (plan)04

Net income
attributable tothe shareholdersof the parent
company

2 3

2,730

2,690
Year on year

Year on year

−476

−434

1,720
Year on year+215
’16/3 (plan)’16/3 (plan)’16/3 (plan)4

While contribution from the start of full-fledged business by
the consolidated subsidiary abroad, full-year operation of Sky
Residence Otorii, and stable heat supply business by the
consolidated subsidiary are expected, it is forecasted that net
sales will decrease by 2.1% (decrease by ¥441 million) fromthe previous term due to the business cancellation of thecontracts of some facilities, completion of area heating
supply in the Haneda Airport 1-Chome District, and adecrease in the sales of local area communication networks.
It is forecast that operating income will decrease by 15.0%(decrease by ¥476 million), and ordinary income by 13.7%(decrease by ¥434 million) from the previous term, due to anincrease in repair expenses and the burden of expenses forplumbing, and a decrease in profit from local area
communication networks business.
It is forecast that the current net income attributable to theshareholders of the parent company will increase by 14.3%(increase by ¥215 million) from the previous term due to adecrease in extraordinary loss with facilities dismantlingplans taking a round.

7
8
9
10

Charles de Gaulle International Airport (France)

63,813

Dallas/Fort Worth International Airport (USA)63,554

Hong Kong International Airport (Hong Kong)

63,121

Source: Preliminary world airport traffic and rankings 2014’ (Airports Council International)

Towards the increase of arrival and departure slots by 39,000 until 2020
For the time being, a plan to add a further 39,000 arrivals and departures to increase the number of slots at Tokyo International Airport to 486,000 is
specifically being considered towards the hosting of the Olympic and Paralympic Games in Tokyo in July 2020. The likely method is to adopt a new route
flying over Tokyo at low altitude, based on the recent development of the noise reduction function of aircrafts.
Photos by: AFLO

05

AFC Annual Report 2015

AFC Annual Report 201506

FocusOur Business in Tokyo International Airport
Since its establishment, our Group’s stronghold has been Tokyo International Airport, and we have been formulating asolid business foundation in real estate and supply businesses. We are willing to continuously react to the new needsof airline companies and aviation-related companies in a flexible manner and steadily stimulate new demand and findpotential customers at Tokyo International Airport, which will be constantly growing and developing as the major baseof the aviation network and along the railway line thereof.
Business Related to Re-expansion and Internationalization (from 2008)

International Passengers
and Air Cargo Area
Opened Oct. 2010

Facilities / Services

Completion date

Major use / Functions

1

Engine Maintenance Building (South Wing)

Feb. 2008

Engine maintenance shop

2

Component Maintenance Building

Apr. 2009

Maintenance of aircraft components

3

Sogo Building No. 5

May 2010

Flight simulator

4

Expanded local area communication networks

Oct. 2010

Telecommunication service

5

Thermal energy supply to the addition ofPassenger Terminal No. 2

Oct. 2010

Thermal energy

6

Sogo Building No. 3

Oct. 2010

In-flight meal preparation

7

Large-size hangar (the second training facility forSkymark Airlines)

Nov. 2010

Flight simulator/Sedentary studies

8

Tokyu Stay Kamata

Mar. 2011

Hotel

9

Sky Residence Minami Kamata

Nov. 2011

Apartments

Feb. 2012

Training facility for flight crew

May 2012

Office（Headquarter of Skymark Airlines）

12 West Hangar

Jun. 2012

Hangar（Skymark Airlines）

13 Sky Residence Omori Higashi

Dec. 2013

Apartments

8

14 Maintenance Center Annex extended

Feb. 2014

Training facility for flight crew

15 In-flight meal factory

Mar. 2014

In-flight meal factory

Adjacent areas
to TokyoInternational Airport

16 Sky Residence Otorii

Nov. 2014

Apartments

17 The second building of a hotel located along

Before the end of 2015
(scheduled)
Business hotel

11 Maintenance Center Annex and Headquarters of

the railway line connected to the airport (in the planning phase)5In-flight meal factory
5

11

1

Factory for meals served on international flights

1

Engine Maintenance Building (South Wing)

Maintenance shop of aircraft engines

Adjacent areas toTokyo International Airport

Thermal energy supply
to the addition ofPassenger Terminal No. 2

8Tokyu Stay Kamata

15

4
4

7
6

2

3
12
14

9

Energy Center

13 16 17

Corporate Information

Skymark Airlines

Runway D
Came into operation
Oct. 201015

Business Review

10 Sogo Building No. 7

The arrival and departure slots forinternational flights increased by 1.5 times.
Mar. 30, 2014

Hotel for airline employees
and passengers

10

Close-up
17 The second building of a hotel located along the railway line connected to the airport (in the planning phase)

Construction of Sky Residence Otorii, which was being constructed as an apartment building for
those who work at the airport, the number of which is increasing in line with the increase of arrivals
and departures according to the expansion of the functions of Tokyo International Airport, wascompleted in November 2014. It is now being used as an apartment mainly for employees of ANAGroup. The facility is thethird apartment building
along the railway line
connected to the
airport by our company,
following Sky Residence
Minami-Kamata(construction completed
in November 2011)
and Sky Residence
Omori-Higashi(construction completed
in December 2013).

In relation to the increase in the number of annual passengers, especially accommodations for
inbound users (those who visit Japan from abroad) are lacking along the railroad line connected toTokyo International Airport
and in the Tokyo Metropolitan Area. While our company
has already completed theconstruction of Tokyu Stay
Kamata in March 2011, it iscurrently scheduling to start
construction of the second
hotel along the railroad line
connected to the airport
before the end of this year,with the expected increasein accommodations demand
along the railroad line.

Toyoko Inn

Keikyu Airpor t

an Loop Ro

ad No. 8

Sega Haneda Building No.1

Line

s s w ay

Policebox

Metropolita6

131 Metro
polit

n E xpreO torii

Route

Outline of the facility
Leased to: ANA Group, etc.
Use: apartments
Construction completed in: November 2014

da Lin(Hane
ute 1

JT Haneda Distribution Baseay R oressw
n E xp311

Haneda Chrono Gate

Haneda Exit

Hotel JAL City Haneda Tokyo

politaeda Lin
1 (Hanal roade)Industri
Takano Hospital
Seven-Eleven

JT Food Development Center

Metropo

Metro

131

e)

16 Sky Residence Otorii

litan Loop

Road No.

8

Ota Haneda Post OfficeAnam

ori Inar i
Keik y

u Air

por t

Line

Outline of the facility
Planned construction site: Haneda Asahi Cho
Start of construction: before the end of 2015 (scheduled)

Image

07

AFC Annual Report 2015

AFC Annual Report 201508

Recent Business Activities (Overseas and Regional Airports)

Future Business Direction

We are trying to renew and expand facilities in regional airports and deploy our business also in overseas markets.

Airport Facilities Co., Ltd. will actively capitalize on business opportunities in Japan and abroad, including the further
development of Tokyo International Airport, revitalization of regional airports, management reform by airline
companies and the expansion of overseas demand.

For the expansion of overseas business
December 2014
Construction of the engine maintenance plant by the locally-incorporated company
in Singapore, and the start of lease

Business Environment

Malaysia

Airports

Singapore

Singapore Changi
AirportTokyo International Airport

Reinforcement of
airports in the Tokyo
Metropolitan Area

Increase in the number of visitors to Japan, mainly via Haneda,
and increase in demand for international flights
Hosting Tokyo Olympic and Paralympic Games
Diversification of materials used in regions

Seletar Airport

Airline Companies

Plan to increase arrival/departure slots
by 39,000 to 447,000
Further expansion of airport capacity is being considered

Training andmaintenance demandHigher efficiency realized by introducing new equipment
Problems such as securing pilots with LCCs gaining power

Simulators and other training facilities
Maintenance/repair facilities for engines for aircrafts

Overseas
Strong demand for aviation services mainly in Asia
Needs for training facilities and maintenance plants
according to the increase in aircraft demand

Outline of the facility

Airpor t Facilities Asia (AFA), our locally-incorporated company inSingapore, has been leasing a hangar for Airbus Helicopter Southeast Asia,
which is a member company of Airbus Group, the major aerospacecompany in Europe, at Singapore Seletar Airport, from March 2014. As theForecast of demand for commercial aircrafts abroad (2014–2033)(Number of aircrafts)

15,000second business in said Airport, an engine maintenance plant for Vector
Aerospace Asia, which is also a member company of Airbus Group, wasconstructed and started leasing in December 2014.

2014

MRO business

Regularmaintenance

10,000Location: 800-885 WEST GEORGIA STREET VANCOUVER BC V6C
3H1 CANADA
Date of registration of establishment: November 12, 2014
Capital stock: 200 million Canada dollars
Description of business: construction, acquisition and leasing of
airport-related facilities (plan)

Maintenanceof accessories

0
Asia-Pacific region

EuropeNorth America

FY2014FY2015(Forecast)

Airbus Helicopters Japan[Kobe]

Heavy
maintenanceEnginemaintenance
Maintenanceof accessories

Airbus Helicopter Southeast Asia
[Singapore]
Vector Aerospace Asia
[Singapore]
TAMAGAWA AERO SYSTEMS[Haneda]* MRO stands for maintenance, repair and overhaul and signifies various industries related to themaintenance and repair of aircrafts.

USA

Future approaches by the Company

SeattlePromotion of measures in the airport and regions near the airport

March 2015
Construction of hangar for small aircrafts in Hiroshima Heliport(former Hiroshima-Nishi Airport) completed

Hiroshima•Providing airport function facilities (simulator facilities, etc.)•Construction of hotels•Utilization of the vacant lot at the front of the International
Terminal of Haneda Airport (Zone No. 2)•Construction of apartments

・Redevelopment of 1-Chome District

Hiroshima Bay
Miyajima
Itsukushima

EdajimaNoumishima

Kure
Kure

・Coping with the problem of vacant rooms

Efforts at regional airports•Reconstruction of facilities (Kagoshima
and Hiroshima)•Keeping eyes on the trend of laws on theoperation of airports utilizing
private-sector initiative(Concession)Line

Taking on new frontier

Outline of the facility
山陽本線

Efforts in regions near
Tokyo International Airport

Efforts in Tokyo International Airport

Hiroshima Junction

Hiroshima Heliport

Total floor area: 1,509.89m
倉橋島
Structure/number of stories: steel construction, two
安芸灘stories above the ground
Use: hangar for rotary-winged aircraft, office

AFC Annual Report 2015

Others(Prepared based on the materials forecasting international demands for 2014 by BOEING and AIRBUS)

Renewal and expansion of facilities in regional airports

09

FY2013

Corporate Information

CanadaVancouver
Vancouver Island

FY2011

2033

5,000

Outline of AFN PROPERTIES LTD.

The relocation construction of the existing hangar in Hiroshima-Nishi Airport, which
took place from September 2014 in accordance with the change of the use of the
airport (as an exclusive airport for helicopters and small aircrafts), was completed in(those shown in [ ] are bases where facilities are provided by our company)

AircraftmaintenanceNovember 2014
Locally-incorporated company founded in Canada
AFNPROPERTIES LTD., a locally-incorporated company
100% owned by our company, was founded in
Vancouver in November 2014, in order to carry forward
consideration of the construction, acquisition andlease business of aviation-related facilities in Canada ina more specific and speedy manner. It is scheduledthat business in Canada will be materialized in the
future by using this company as a base.

MRO* business classification by the new clients of our company
Business Review

Location: Singapore Seletar Airport
Total floor area: 5,399.14m2
Use: plant for the maintenance/repair of engines
for aircrafts

Demand abroad

2

March 2015. In addition, some new values were added; the new hangar can also
store large-sized aircrafts, and all the lights used in the building were switched to
LED lights, expecting to have energy-saving effect of more than 50%.

Further efforts in overseas businesses•Providing facilities in reaction to the strong demand for aviation
services abroad•Further excavation of projects in Singapore

Efforts towards the expansion of customer base•Facilities related to aircraft manufacturers in Japan and abroad•Sales to MRO business operators•Providing facilities in Canada

AFC Annual Report 201510

Our Website Timely Updated http://www.afc.jp/english/

Airport Facilities Co., Ltd.

SearchWe continue enriching the contents of our website serving our stakeholders including shareholders and investors as
a communication platform. Our website contains various useful information facilitating your understanding ourbusiness. You can see how our facilities are used through a video titled “Backstage of Airport.” In addition, IR
information is continuously enriched.

Subsidiary Company

Tokyo Airport Heating & Cooling Co., Ltd. (THC)
As the core company for the heating operation of our company, Tokyo Airport Heating& Cooling Co., Ltd. is engaged in business supplying area heating service in thereclaimed area offshore from former Tokyo International Airport. Heating and coolingenergy is generated at the Energy Center and is supplied to various facilities in the
airport including government offices and Terminal Buildings No. 1 and No. 2 via area
plumbing. The company is carrying out a 10-year plan for the renewal of equipment,
which also includes environmental and energy-saving measures, from FY2011.
Energy Center

Water-saving cooling water recycling equipment

Pipeline (in public conduit)

Corporate Information

Energy-saving high efficiency freezer

Business Review

24-hour control room

“Backstage of Airport” presents dynamic images and sounds of“Hangars,” “Maintenance Buildings,” “Aircraft Cleaning Facilities,” and“Multi-purpose Buildings (Sogo Buildings)”.
Corporate Information

History

Corporate Profile (As of March 31, 2015)

Facilities

Company Name: Tokyo Airport Heating & Cooling Co., Ltd. (THC)
Established: August 24, 1989
Description of Business:

EnergyCenter(1) Providing various facilities in Tokyo International Airport with air conditioning
01 “Hangar”

02 “Maintenance Buildings”

Location: Headquarters
Energy Center
3-5-9, Haneda Airport, Ota-ku, Tokyo,144-0041
TEL +81-3-5756-9800 (Main)

AFC Annual Report 2015

3,037m2

Total floor space:

9,155m2
2,500RT x 1

Freezer

Boilers

Turbo chiller

2,250RT x 2
1,000RT x 2

Absorption chiller

2,500RT x 7

Water-pipe boiler

35 T/H x 3

Flue boiler

15 T/H x 1

In public conduit
Pipeline

Main customers: Japan Airport Terminal Co., Ltd.
Japan Airlines Co., Ltd.
All Nippon Airways Co., Ltd.
Airport Facilities Co., Ltd.

11

Building area:
5-story reinforced concrete building

Thermal energy
generators

Shareholders: Airport Facilities Co., Ltd. (60.3%), Other (39.7%)

04 “Multi-purpose Building (Sogo Building)”

4,031m2(2) All businesses related to the above
Capital: 2,900 million yen

03 “Aircraft Cleaning Facilities”

Site area:

About 5,350 m

4 pipe system Suspended
Pipe diameter

About 300 m

BuriedAbout 700 m

Cooling pipes

φ125–1,200

Steam and circulating-water pipes

φ65–500

AFC Annual Report 201512

Consolidated Financial Data & Industry Related Data (Ten-year Summary)Primary Consolidated Financial Data Charts (Five-year Trend)
Net Sales

Ordinary Income / Net Income

Net Sales by Segment

ROE

Equity Ratio

Debt to Equity(¥Million)(¥Million)(¥Million)

(％)

(％)

（Times）

30,0006,000

30,000

8

80

1.5

5,000

25,000
6

60

25,00022,51520,806

21,06820,971

21,111

20,0004,000

20,0003,490

15,000

3,000

3,235
4,212

3,164

3,090

61.2

15,000

2,711

2,919

2,468

2,393

2,350

4,357

4,244

3,720

3,193

10,000

2,000

1,781

4

0

1,000

’11/3

’12/3

’13/3

’14/3

0

’15/3

13,52814,354

14,857

15,568

0.6
0.394

2

0.313

20

’12/3

’13/3

Ordinary Income

’14/3

0

’15/3

’11/3

’12/3

’13/3

’14/3

0

’15/3

Real Estate Business
Area Heating & Cooling Business
Water supply & Drainage and Other Business

Net Income

’11/3

’12/3

’13/3

’14/3

0

’15/3

0.450
0.349

0.360

’13/3

’14/3

0.3

5,000

’11/3

1.2

40
2.4

15,068

1,093

5,000

58.3

3.1

10,000

1,505

59.9

0.9
3.9
3.8

1,729

62.2

4.6

2,396
2,045

61.4

’11/3

’12/3

’13/3

’14/3

0

’15/3

’11/3

’12/3

’15/3

Debt to equity = Interest-bearing debt (year end) / Equity capital (year end)

ROE = Net income / Equity capital (average) ×100

Ten-year Financial Summary & Industry Related Data
’06/3

’07/3

’08/3

’09/3

’10/3

’11/3

’12/3

’13/3

’14/3

’15/3

24,58825,12325,26323,60922,51520,806

21,06820,971

21,111

5,270

5,194

5,242

4,860

3,814

2,486

2,771

3,363

3,499

3,166

Ordinary Income (¥Million)

4,807

4,765

4,868

5,041

3,542

2,396

2,711

3,490

3,090

3,164

Net Income (¥Million)

2,687

2,621

2,919

3,100

299

2,045

1,729

1,781

1,093

1,505

EBITDA (¥Million)

10,787

10,32010,833

10,726

6,730

8,757

7,231

6,445

5,134

6,617

Cash Flows from Operating Activities (¥Million)

8,166

7,575

8,045

8,213

7,443

7,659

2,861

5,522

3,898

3,478

Cash Flows from Investing Activities (¥Million)(1,302)(2,243)(6,996)(4,309)(3,594)(4,395)(4,699)(3,833)(4,418)(4,772)

Cash Flows from Financing Activities (¥Million)(6,027)(5,761)340(3,772)(4,191)(3,975)

3,117(3,516)15

4,500

Depreciation Expense (¥Million)

5,642

5,290

5,281

5,313

5,510

5,047

3,382

3,222

3,093

3,434

Business Investment in Plant and Equipment (¥Million)

1,023

2,839

6,234

5,295

3,427

12,545

7,177

3,166

7,527

1,980

At the Year End
Net Assets (¥Million)

39,07542,84544,26445,71844,897

46,16047,27447,02647,99850,715

Total Assets (¥Million)

77,14374,38576,80675,28471,012

73,08374,86473,317

77,621

84,270Interest-bearing Debt (¥Million)

26,092

21,13422,196

19,566

16,537

14,002

18,094

15,92016,74622,120Equity Capital (¥Million)*1

39,07540,91142,70044,122

43,484

44,69445,95845,60746,49949,138Per Share Data
Net Income per Share (¥)

51.00

50.72

56.49

60.01

5.80

39.58

33.46

34.48

21.15

29.14
951.16

Net Assets per Share (¥)*

755.28791.84826.48854.01841.67865.11

889.58882.80900.07

Dividends per Share (¥)

13.0

15.0

16.0

16.0

16.0

10.0

12.0

12.0

12.00

12.00

51,668,868

51,666,230

51,665,185

51,664,320

51,663,628

51,663,281

51,662,681

51,662,417

51,661,979

51,661,583

2

Average Number of Shares during the Period (Shares)
Management Index
Equity Ratio (%)
Debt to Equity (Times)

50.7

55.0

55.6

58.6

61.2

61.2

61.4

62.2

59.9

58.3

0.668

0.517

0.520

0.443

0.380

0.313

0.394

0.349

0.360

0.450

ROE (%)

7.10

6.55

6.98

7.14

0.68

4.64

3.76

3.91

2.37

3.15

Ordinary Income to Total Assets (%)

6.1%

6.3%

6.4%

6.6%

5.0%

3.3%

3.6%

4.8%

4.1%

3.9%

Operating Margin (%)

21.8%

21.1%

20.9%

19.2%

16.2%

11.0%

13.3%

16.0%

16.7%

15.0%

Payout Ratio (%)

25.5

29.6

28.3

26.7

276.0

25.3

35.9

34.8

56.7

41.2

Dividends to Net Assets (%)*3

1.9

1.9

1.9

1.9

1.8

1.1

1.3

1.4

1.3

1.2

136

132

131

123

118

115

111

148

151

152

Data Related to Tokyo International Airport
Number of Domestic Passengers

62,294,265

65,265,791

64,951,041

63,157,057

59,334,725

58,808,107

56,424,630

58,752,301

61,410,028

Number of International Passengers

1,301,176

1,617,338

1,950,769

2,438,401

2,756,542

4,818,314

7,267,172

7,948,089

8,039,080

Volume of Domestic Cargoes (ton)678,092

701,363718,205

757,108

724,539

720,787

696,083

703,153

758,922

1,892

5,317

6,595

10,05915,561

61,270124,005

140,915

153,884

Employees (Consolidated)

Volume of International Cargoes (ton)Corporate Information

24,148Operating Income (¥Million)

Business Review

For the YearNet Sales (¥Million)*1 Shareholders' equity until the fiscal year ended March 31, 2006 *2 Shareholders' equity per share until the fiscal year ended March 31, 2006 *3 Dividend on equity ratio (non-consolidated basis) until the fiscal year ended March 31, 2006, and, dividend on net
assets ratio from the fiscal year ended March 31, 2007 (consolidated basis)

13

AFC Annual Report 2015

AFC Annual Report 201514

List of Facilities (AS of March 31, 2015)
Location

Date of completion(acquisition)

Major use

Location

Facility nameType

Date of completion(acquisition)

Major use

(Apr. 1970)

OfficeFukuoka Airport

Building

Small size aircraft hangar

Feb. 1996

HangarSogo Building No. 2

Jul. 1972

OfficeFukuoka Airport

Building

Sanitary Disposal Plant (SD Plant)

Sept. 1997

Sewage from aircraft treatment plant

Sogo Building No. 3

Feb. 1976

Office/Workshop

Fukuoka Airport

Building

Office, etc.

Sogo Building No. 4

Jun. 1980

OfficeKitakyushu Airport

Building

Kitakyushu Airport Training Center

Sogo Building No. 5

Nov. 1981

Office/Workshop

Kagoshima Airport

Land

Vacant land

Building

Sogo Building No. 7

May 1991

Simulator room/Lecture room

Kagoshima Airport

Building

Building

Large hangar

Apr. 1970

HangarKagoshima Airport

Building

Tokyo International Airport

Building

Engine Shop No. 4

Aug. 1979

Plating plant

Kagoshima Airport

Building

Tokyo International Airport

Building

Energy Center

Sept. 1973

Chiller room/Boiler room

Kagoshima Airport

Building

Tokyo International Airport

Building

Sanitary Disposal Plant (SD Plant)

Dec. 1987

Sewage from aircraft treatment plant

Naha Airport

Tokyo International Airport

Building

Utility Center Building

Apr. 1993

Office/Substation

Naha Airport

Tokyo International Airport

Building

West Hangar

Jul. 1993

HangarTokyo International Airport

Building

Maintenance Center Annex

Jun. 1993

Office/Vehicle MaintenanceTokyo International Airport

Building

Maintenance Center Annex extended

Feb. 2014

Tokyo International Airport

Building

Ground Support Equipment (GSE) Maintenance Shop

(Mar. 2000)

Tokyo International Airport

Building

Gas governor station

Tokyo International Airport

Building

Technical Center No. 1

Tokyo International Airport

Building

Technical Center No. 2

Tokyo International Airport

Building

Technical Center No. 2 extended

Tokyo International Airport

Building

Domestic Air Cargo Terminal (E-1 to 4 wing, W-1 to 3 wing)

Tokyo International Airport

Building

Domestic Air Cargo Terminal (E-5 wing)

Tokyo International Airport

Building

Tokyo International Airport

Building

Tokyo International Airport

Building

Tokyo International Airport

Building

Tokyo International Airport
Tokyo International Airport

Tokyo International Airport

Building

Sogo Building No. 1

Tokyo International Airport

Building

Tokyo International Airport

Building

Tokyo International Airport

Building

Tokyo International Airport

Building

Tokyo International Airport
Tokyo International Airport

Office/Materials & oil storage
Aug. 2012

Simulator room/Lecture room

Hangar No. 1

Mar. 2014

HangarHangar No. 2

Mar. 2014

Hangar

Logistics facility

Mar. 2014

Cargo handlingKagoshima Center

Sept. 1989

OfficeBuilding

Small size aircraft hangar

Mar. 1996

HangarBuilding

Oil and fat storage

Mar. 1996

Oil storage

Naha Airport

Building

Office building

Jun. 1999

OfficeNaha Airport

Building

Office wing at small size hangar

Aug. 2006

OfficeTraining facility for flight crew

Naha Airport

Building

Sanitary Disposal Plant (SD Plant)

Jun. 2001

Sewage from aircraft treatment plant

Vehicle Maintenance, etc.

Ota-ku, Tokyo

Land

Tokyu Stay Kamata

Apr. 1993

Gas governor room

Ota-ku, Tokyo

Building

Tokyu Stay Kamata

Mar. 2011

Hotel(Mar. 2002)

Maintenance shop for aircraft parts, etc.

Ota-ku, TokyoLand

Sky Residence Minami Kamata

Dec. 2002

Maintenance shop for aircraft parts, etc.

Ota-ku, Tokyo

Building

Sky Residence Minami Kamata

Nov. 2011

Apartments

Mar. 2007

Maintenance shop for aircraft parts, etc.

Ota-ku, TokyoLand

Maison Otorii

Aug. 1993

Cargo handling

Ota-ku, Tokyo

Building

Maison Otorii(Mar. 2008)

Apartments

Mar. 1998

Cargo handling

Ota-ku, TokyoLand

Sky Residence Omori-Higashi

Domestic Air Cargo Terminal (E-6 wing)

Dec. 2001

Cargo handling

Ota-ku, Tokyo

Building

Sky Residence Omori-Higashi

Dec. 2013

Apartments

Domestic Air Cargo Terminal (E-3 wing) extended

Sept. 2007

Cargo handling

Ota-ku, TokyoLand

Sky Residence Otorii

ARC Building

Jul. 1993

OfficeOta-ku, Tokyo

Building

Sky Residence Otorii

Nov. 2014

Apartments

Cargo Center Building Annex

Aug. 1993

Office/Substation

Ota-ku, Tokyo

Land

Land (Haneda Asahi Cho)

Building

Eastern ultrahigh voltage sub station

Aug. 1993

Substation

Minato-ku, Tokyo

Building

Aviation Building (Koku Kaikan)(Feb. 2003)

OfficeBuilding

Large size cleaning facilities

Mar. 2007

Aircraft cleaning facilities

Chuo-ku, TokyoLand

Kyodo Building (Muromachi 1-chome)

Tokyo International Airport

Building

Engine Maintenance Building, South Wing

Feb. 2008

Engine maintenance shop

Chuo-ku, Tokyo

Building

Kyodo Building (Muromachi 1-chome)(Dec. 2010)

OfficeTokyo International Airport

Building

Component Maintenance Building

Apr. 2009

Maintenance shop for aircraft parts, etc.

Chuo-ku, TokyoLand

Kyodo Building (Muromachi 4-chome)

Tokyo International Airport

Building

In-flight meal factory

Mar. 2014

In-flight meal factoryChuo-ku, Tokyo

Building

Kyodo Building (Muromachi 4-chome)(Dec. 2010)

OfficeNew Chitose International Airport

Building

Hangar No. 1

Nov. 1974

Hangar

Narita city, Chiba, etc.

Land

Land

New Chitose International Airport

Building

Administration office

Dec. 1991

OfficeNarita city, Chiba

Building

Solar power plant

New Chitose International Airport

Building

Sanitary Disposal Plant (SD Plant)

Jun. 1992

Sewage from aircraft treatment plant

Kimitsu city, Chiba

Land

Land

New Chitose International Airport

Building

Warehouse, etc.

Dec. 1974

Equipment storage/Office

Izumisano city, Osaka

Land

Rinku International Logistics Center

Sendai Airport

Building

Small size aircraft hangar No. 1

Jun. 1986

HangarIzumisano city, Osaka

Building

Rinku International Logistics Center

Sendai Airport

Building

Small size aircraft hangar No. 2

Nov. 1993

HangarSendai Airport

Building

Annex building

Jun. 1993

OfficeSendai Airport

Building

Sanitary Disposal Plant (SD Plant)

Feb. 1996

Sewage from aircraft treatment plant

Sendai Airport

Building

Warehouse, etc.

Dec. 1974

Materials and oil storage

Central Japan International Airport

Building

Sanitary Disposal Plant (SD Plant)

Feb. 2005

Sewage from aircraft treatment plant

Osaka International Airport

Building

Osaka Sogo Building

Dec. 1968

OfficeOsaka International Airport

Building

Sanitary Disposal Plant (SD Plant)

May 1977

Sewage from aircraft treatment plantKansai International Airport

Building

Sanitary Disposal Plant (SD Plant)

Jul. 1994

Sewage from aircraft treatment plantKansai International Airport

Building

Large size aircraft hangar at Kansai International Airport

Mar. 2002

HangarKobe Airport

Land

Vacant land for hangar

Kobe Airport

Building

Hangar

Nov. 2011

HangarHiroshima heliport

Building

Small size aircraft hangar No. 1

Oct. 1983

HangarHiroshima heliport

Building

Small size aircraft hangar No. 2

Jun. 1992

HangarHiroshima heliport

Building

Annex building

Sept. 1983

OfficeHiroshima heliport

Building

Hiroshima heliport hangar

Apr. 2015

HangarCorporate Information

AFC Annual Report 2015

Business Review

15

Facility name

Type

(Off-site)
Oct. 2013

Solar power plant

Office/Cargo handling(Sept. 2011)

Overseas
LocationType

Facility nameDate of completion(acquisition)

Major use

Seletar Airport, Singapore

Building

Hangar(Mar. 2014)

Office/Hangar

Seletar Airport, Singapore

Building

Engine maintenance plant

Dec. 2014

Plant for the maintenance/repair ofengines for aircrafts

Major tenants[Domestic] Airbus Helicopters Japan Co., Ltd., ANA FACILITIES CO., LTD., JAL ROYAL CATERING CO., LTD., Skynet Asia Airways Co., Ltd., Skymark Airlines Inc., Star Flyer Inc., ALL
NIPPON AIRWAYS CO., LTD., Japan Airlines Co., Ltd., NIPPON EXPRESS CO., LTD., panda · Flight · Academy Inc., YAMATO GLOBAL EXPRESS CO.,LTD., etc.
[Overseas] Airbus Helicopters Southeast Asia Pte Ltd, Vector Aerospace Asia Pte. Ltd(in no particular order)

AFC Annual Report 201516

Corporate Governance
Basic Philosophy

Reinforcement of corporate governance and implementation system

We are fully aware of the managing duties entrusted by our shareholders as well as our social corporate responsibilities in doing
our business which handles a large number of passenger traffic and a large volume of cargo.
With our mission and corporate philosophy in mind, we strive to complete our corporate governance to improve ourcorporate value and for the common benefit of our shareholders.

With the purpose of further reinforcing the corporate governance and implementation system, the mechanism including 14
members of the board, with the addition of two new external directors (independent officers), passed the resolution at theannual shareholders meeting held on June 26, 2015.

Structure of Organization

Executives (as of June 26, 2015)

Our corporate governance system is controlled by the Board of
Directors and Board of Corporate Auditors and we adopt the
Corporate Officer System aiming at rapid decision-making, etc.
Furthermore, we strive to ensure managerial compliance,

appropriateness and efficiency by maintaining and enhancing theinternal control system shouldered by the Audit Office monitoring
our business activities, Compliance Committee, and Risk
Management Committee.

Diagram of Internal Control System

Supervision

General Meeting of Shareholders

Accounting Auditors

Board of Corporate Auditors

Risk Management Committee
Audit Office

Board of Corporate Officers

Bureau: General Affairs
Department, etc.

Tomoyuki Takahashi

Full-time Statutory Auditor

Yoshimitsu Amemiya

President and CEO

Hiroshi Maruyama

Full-time Statutory Auditor

Mineo Tsuguchi

Executive Vice President

Kenji Inaoka

Statutory Auditor

Akihiko Shiba*

Executive Vice President

Manabu Sato

Statutory Auditor

Satoshi Iwamura*

Senior managing director

Toshiyuki Nagayoshi

Senior Corporate Officer

Hiroki Osawa

Senior managing director

Hiroyuki Hoshi

Senior Corporate Officer

Yukihiko Takada

Managing Director and Senior Corporate Officer

Kosei Ashikaga

Corporate Officer

Hiroshi Hokazono

Managing Director

Kazuo Katahira

Corporate Officer

Minoru Kitajima

Director and Senior Corporate Officer

Keisuke Komatsu

Director and Senior Corporate Officer

Kazuhiko Muraishi

External Director

Hayao Hora

External Director

Toshiaki Norita

External Director

Takehiko Sugiyama*

External Director

Kayo Aoyama*

Managers Meeting

Departments and Consolidated Subsidiary

Corporate Information

Business Execution

PresidentInternal Control

Compliance Committee

Board of Executive Directors

ChairmanBusiness Review

Board of Directors

The following new executive system has started based on the above decision.

* Independent officer pursuant to the rules of
the Tokyo Stock ExchangeInternal Control System

17

Compliance

Risk Management

Internal Control over Financial Reporting

Short biography of the two newly-appointed external directors (independent officers)

We have set up a Compliance Committee
chaired by the president and composed of
all representative directors and fulltime
statutor y auditors. The Committee
examines important matters necessary toensure that the due execution of duties by
our executives and employees complies
with laws and ordinances, the articles ofcorporation or in-house rules, bringing ourw h o l e group p ro p e r o p e r ati o ns ,prevention of compliance violations, andlegal risk avoidance or reduction.

Our Group which builds, and manages
functional facilities indispensable for
airports, is responsible for supporting thesafe airport operation as well as flight
operation. In this context, our Group has
set up a Risk Management Committee
comprised of directors, department heads,
and representatives of subsidiaries, andstrives to maintain and improve its
comprehensive risk management system
in order that no attendant risk on ourbusiness activities may hinder smooth
airport operation and flight.

The Audit Office, under the direct control ofthe president, handles responding to theinternal control reports required by the
Financial Instruments Exchange Act, andaudits and evaluates our business from awide-ranging perspective in order toensure proper operations. Our Group isaware of the value of trust wor thy
disclosures, financial reports, etc., and it willcontinuously strive to work the internal
control system effectively and ameliorate it.

Takehiko Sugiyama

Kayo Aoyama

April 1986

April 1985

Starts career as a freelance announcer(up to present)

June 1995

Member of the Council for Civil Aviation, Ministry of Transport

AFC Annual Report 2015

Professor of the Faculty of Commerce, Hitotsubashi University

December 2004 President of Hitotsubashi University
December 2010

Professor of the Faculty of Social Innovation, Seijo University

April 2011

Vice Chairman of the Institution for Transport Policy Studies
Chairman of the Institution for Transport Policy
Studies (present post)

July 2011

External Statutory Auditor of Sumitomo Life Insurance Company(present post)

February 2001 Member of the Council of Transport Policy, Ministry of Land, Infrastructure,
Transport and Tourism
July 2014

Director of the National Agency of Vehicle Inspection (part-time)(present post)

AFC Annual Report 201518