©AIRBUS HELICOPTERS JAPANAFCREPORT

Fiscal Year Ended March 31, 2020
April 1, 2019 March 31, 2020

AIRPORT FACILITIES CO., LTD.
(Ticker Code: 8864)

Message fromthe President

President and CEO

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.

The statements about the future describedin this report such as earnings forecasts havebeen 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.

1

AIRPORT FACILITIES CO., LTD.

We will react flexibly and boldly to significant changes in thebusiness environment, and we are willing to confront importantmanagement issues to achieve further success.
Business Results and Dividend
In addition to the full-year operation of the hotels in Kyoto whichwere acquired during the previous fiscal year, projects for new
facilities also contributed to the result of the performance for the
FY ended in March 2020, having increased in both net sales andoperating income year on year. The year-end dividend is ¥7.0 as wasforecasted at the beginning of the term. While it is expected that
operating income will decrease for the FY ending in March 2021 dueto the impact of the COVID-19 pandemic, we plan to offer an annual
dividend of ¥14.0 per share for the fiscal year, comprehensively
considering constant return to shareholders and the future outlook,
continuing our efforts to ensure stable return to shareholders.
Business Environment and Future Outlook
The COVID-19 pandemic is having grave consequences for the
economy, and various industries including the aviation industry,
which is a client of our company, are being affected. Although it isexpected that our company will also suffer a decrease in operating
income this fiscal year, we are expecting that the situation will
recover when the epidemic recedes. We will get out of this difficult
situation with continuous corporate effort.
Our Efforts
Although our real estate business is characterized by many tenants
based on relatively long-term, stable contracts, we would like tocontinue our efforts in grasping the scope of the impact of COVID-19
and implement operating activities.
As facilities in some areas at Tokyo International Airport arebecoming old, future redevelopment is being considered, and a
new long-term restoration program will be formulated. We will workon the further increase of the occupancy rate by trying to improve
the quality and asset value.
As for businesses outside airports, we promote profitablebusinesses such as participation in the HANEDA INNOVATIONCITY development project, leasing of a dormitory for international
students in Kanto Gakuin University, etc.
As for the area heating and cooling business, we will continuously ensure stable supply and try to understand the trend at Tokyo
International Airport. In order to respond to the trend of facilities
expansion in line with the development of internationalization, weare also working on the reinforcement of supply capacity.
Regarding water supply and sewage business, although the useof water and sewage within the airport is significantly decreasing
due to the impact of COVID-19, we expect that it will return to astable business once the epidemic recedes.
As for overseas business, we opened the Singapore Office withan aim to reinforce management capacity and an ability to collectoverseas information. On this occasion, we would like to further
expand the overseas business.
In addition, our group aims to increase corporate value by
promoting efforts regarding ESG and SDGs, and to realize sustainable growth together with society.
Lastly, this is the 50th anniversary of our company. We appreciate
your continuous support, and are determined to develop thebusinesses of our company aiming for another 50 years. We would
like to ask for your continuous support.

Fiscal Year Ended March 31, 2020

Highlights of Business Result
Dividend policy
1 We aim to ensure stable andPoint
1 In addition to the full-year operation of hotels in Kyoto acquired during the previous fiscal year, the company

sustainable return to shareholders with a payout ratio of
30% or more as a general rule.

2 Although there had been partial impacts from COVID-19 in March, business performance for this fiscal year re-

2 The annual dividend for fiscal

started leasing of aircrafts to Civil Aviation College and the rent of new properties.

sulted in exceeding the level of the previous year for the above reasons.

year ended March 2020 is 14
yen.

Cash dividends per share

24.8billion

Net sales ¥Operatingincome ¥2.6%

4.1billion

1.3%

+

¥

5.8%

+

year on year

14

2.2billion

Net income* ¥+year on year

(Payout ratio 31.2%)

year on year
*Profit attributable to owners of parent

Cash dividends per share

Net sales

Operating income(¥ Million)(¥ Million)

24,85524,213

4,129

4,103

Profit attributable toowners of parent(¥ Million)

2,104

18/3

+5.8%

5.2%

+ 6.2%

−

19/3

20/3

18/3

19/3

20/3

18/3

Q4

Q2

14

14

14

7

7

7

7

7

7

18/3

19/3

20/3

2,227

2,219

+1.3%

+0.6%

+ 2.6%

22,791

4,186

(Yen)

19/3

20/3
ANNUAL REPORT 20202

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

Real EstateBusiness

Net sales(‘20/3)Major companies
Airport Facilities Co., Ltd., AIRPORT FACILITIES ASIA PTE. LTD.,AFN PROPERTIES LTD.

11.5%

13.2%

Major business investments (As of March 31, 2020)
Technical Center warehouse building/ Extension of hangar
in Kobe Airport
ARC Building in-flight meal factory
Aircraft sewage treatment facility
Hangar at Nata Heliport
HANEDA INNOVATION CITY
Dormitory for international students in Kanto Gakuin University

Domestic Air Cargo Terminal(Tokyo International Airport)( 20/3)

Real EstateBusiness

75.3%

Overseas location

12 Airports where we deploy our business
New Chitose

Central Japan Int’l(Centrair)

Outside Airport/
Overseas
Other regional
airports

14.3%

KansaiInternational
Airport

1.9%

3

AIRPORT FACILITIES CO., LTD.

Sendai

Kobe
Tokyo Int’l Airport,
Tokyo Metropolitan area

Kitakyushu

4.9%
1.5%

Canada:Langley Regional
AirportOsaka Int’l(Itami)Net Sales by Region

Osaka
International
Airportbillion (+3.3% )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

In-flight meal plant

Net Sales by Business Segment

Area Heating &Cooling Business

18.7

¥

Kansai Int’l
Hiroshima Heliport

Fukuoka( 20/3)

Tokyo
International
Airport77.4%

Singapore:
Seletar airport

KagoshimaNaha

Net sales/Operating income (¥ Million)
Net sales

20,000Operating income

15,00010,0005,000
02018/3

2019/32020/3

While the progress of tenants moving into Tokyo International Airport, new properties, full-year operation of hotels
in Kyoto, lease for Civil Aviation College, and the extension
and reconstruction of a hangar in Kobe Airport contributed,
repair expenses increased, resulting in an increase in net
sales and a decrease in operating income.

3.2

Area Heating
Net sales¥& Cooling Business (‘20/3)

billion (+0.9% )Core business
Provision of cooling and heating functions at Tokyo International Airport (areaheating and cooling business)

Energy Center

2.8

Water Supply & Drainage Net sales¥
Service and Other Business (‘20/3)

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

Water supply & drainage facilities
in the reclaimed land area offshore

Major companies
Tokyo Airport Heating & Cooling Co., Ltd.
Major business investments (As of March 31, 2020)
Boiler renewal work

High-efficiency Electric Turbo Chiller

billion (-0.0% )Major companies
Airport Facilities Co., Ltd.

Shared Communication Service

Major business investments (As of March 31, 2020)
Laying cables for local area
communication network

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

2018/3

2019/3

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

2020/3

Net sales were approximately at the same level as theprevious fiscal year. Although there was an increasein depreciation expenses caused by the renewal of
the boiler, repair expenses and raw material expenses
decreased, resulting in increases in both nets sales andoperating income.

Net sales

3,000

Operating income

2,000
1,000
0

2018/3

2019/3Use of water and sewage had been solid up to
February. Although the demand decreased since
March due to the COVID-19 epidemic, use of thelocal area communication network increased,
resulting in a decrease in net sales and increasein operating income.

2020/3

ANNUAL REPORT 2020

4

Progress Status of the Medium-term Management Plan
Net sales(¥Million)

Previous Medium-termManagement Plan

Current Medium-termManagement Plan

Operating income
Previous Medium-termManagement Plan(¥Million)

Current Medium-termManagement Plan

27,47024,21324,8554,550

25,690

4,103

4,129

(¥Million)

Net sales

Operating income

Profit attributable toowners of parent

Forecast

24,780

4,170

2,320

Results

24,855

4,186

2,227

Forecast Results

Forecast Results

Forecast Results

4,186
3,960

3,825

22,791Comparison of FY2019 forecasts and results

21,662

Progress Status of the Medium-term Management Plan
2017/3(Results)

2018/3(Results)

2019/3(Results)

2020/3(Results)

2021/3(Forecast)

2022/3(Targets)

Profit attributable to owners of parent (¥Million)
Previous Medium-termManagement Plan

Current Medium-termManagement Plan

2017/3(Results)

2018/3(Results)

2019/3(Results)

2020/3(Results)

2021/3(Forecast)

2,219

2,104

(Targets)

EBITDA + recovery
Previous Medium-termManagement Plan(¥Million)

Current Medium-termManagement Plan

8,770

2,610
2,151

2022/3

2,227

7,501

7,835

7,989

6,737
6,161

1,310

2017/3(Results)

5

2018/3(Results)

2019/3(Results)

AIRPORT FACILITIES CO., LTD.

2020/3(Results)

2021/3(Forecast)

2022/3(Targets)

2017/3(Results)

2018/3(Results)

2019/3(Results)

2020/3(Results)

2021/3(Forecast)

2022/3(Targets)

1) Our company formulated a Medium-term Management
Plan for three years covering the period from FY 2019 to FY
2021 (hereinafter referred to as the “Plan”). The Plan schedules investment of about 30 billion yen in total for three years,
through the implementation of new investment responding
to the growing aviation-related demand and active implementation of renewal and repair of existing facilities. In FY
2021, which is the last year of the Plan, we aim to achieve net
sales of 27.4 billion yen, operating income of 4.5 billion yen,and profit attributable to owners of parent of 2.6 billion yen.
Business developed generally as planned for FY 2019, which isthe first year of the Plan.
2) However, the COVID-19 pandemic is having grave consequences for the economy. We have started providing many
new properties in FY 2019, expecting a significant increase in
net sales in FY 2020, but the business of our company is also
suffering a decrease in the sales of water supply and sewage
business due to COVID-19. We are also scheduling to exempt
some rent claims of tenants affected by COVID-19, and are expecting a decrease in operating income and profit attributableto owners of parent.
3) We expect that the business environment will recover oncethe epidemic recedes. We aim to achieve the Plan by developing businesses even more actively in the future.

Profile of investment projects Implementing new investments towards the expansion of business based on the Medium-term Management Plan
Tokyo International Airport

Technical Center warehouse building

ARC Building in-flight meal factory

Construction completed in December 2019
Use: aircraft equipment warehouse/officeConstruction completed in January 2020
Use: in-flight meal factory

Extension of hangar in Kobe Airport

Hangar at Nata HeliportWith the increase of international flights in Tokyo International Airport, thecapacity of facilities necessary for supporting the operation of aircrafts is also
increasing. In order to respond to such demand, we are actively working on
providing various facilities to support Tokyo International Airport.
Major
efforts• Technical Center Warehouse Building• ARC Building in-flight meal factory• Aircraft sewage treatment facility (SD plant)

Regional airport
We provide properties in eleven regional airports. We will develop business by
responding to the delicate needs of each airport that are generated according
to the national policy of revitalizing local communities and the privatization of
airports.
Major
efforts• Extension of hangar in Kobe Airport• Hangar at Nata Heliport

Outside Airport/Overseas/Other©AIRBUS HELICOPTERS JAPANConstruction completed in December 2019
Use: small aircraft hangar

Construction completed in January 2020
Use: Hangar for rotorcraft / OfficeDormitory for international students
in Kanto Gakuin University

HANEDA INNOVATION CITY

Scheduled to be completed in March 2021
Use: Dormitory/Regional contribution space

Open to the town in 2020 Grand opening in 2022
Use: Complex facility

We will provide facilities according to the needs of the times, including inbound demand and services necessary for the aviation industry, taking advantage of our know-how acquired through businesses in airports.
Major
efforts• Dormitory for international students in Kanto Gakuin University• HANEDA INNOVATION CITY

Project:
Development of Zone 1 of the Former Haneda Airport Ground (Phase I)Name of the facility: HANEDA INNOVATION CITY		
HICity for short
Our efforts:
Parking lot business, office business

ANNUAL REPORT 20206

Special
Topic

Overseas business development

Origin2014

of a hangar in Kobe Airport
2011 Lease
to Airbus Group started©AIRBUS HELICOPTERS JAPANOur company started its overseas business in 2011, on
the occasion of providing a hangar for Airbus Group in
Kobe Airport. Since then, we have actively developed
business providing facilities locally and abroad to overseas customers, and expanding our business area to Asia
and North America.

2013

2014

AIRPORT FACILITIES ASIA
(AFA), a subsidiary company,
was established in Singapore

Seletar Airport is the second largest Airport in Singapore,
where not only many chartered private aircraft are inservice but also future development and growth as acenter for the aerospace industry are being expected.
[Seletar Airport]
Runway 1,840m
Approx. 160ha total floor area

AIRPORT FACILITIES CO., LTD.

Established AFN
PROPERTIES, a subsidiary
in Canada(contract expired in 2019)

Provision of an engine
maintenance factory
started in Seletar
AirportCurrent Singapore Seletar airport

7

2014

Financing of a helicopter hangar started in
Seletar Airport

Overseassubsidiaries

AIRPORT FACILITIESASIA PTE. LTD.

AFS PROPERTIES
PTE. LTD.

Description of main Business
Construction, acquisition,and real estate business ofaviation-related facilities

Description of main Business
Financing for flight
simulators* Established as a subsidiary of AIRPORTFACILITIES ASIA

Singapore

Started providing ahelicopter maintenancefacility at Langley
Regional Airport in
Canada

2020

el

w

W

ax

ay

M

2018

Established an office as AFC
Group’s overseas hub in
SingaporetonStarted providing a pilot
training facility at Seletar
Airport in Singapore
In addition, financing for aflight simulator introduced to
the facility started

New

2017

Sh

d

lR

In Singapore, where(Nearest station)
Tanjong Pagar
the growth of aviGopeng
St
ation demand andSingapore oﬃce
MAS Buildingd e m a n d fo r t h emaintenance of aviation-related facilities
Keppel Viaductcan be expected for along time from now on, our company allocated humanresources and opened a new office this April with an aim
to reinforce local marketing capacities and collect overseas information. By establishing our company’s office inSingapore, which is one of the hubs of Southeast Asia, wewill catch demand for maintenance promptly and develop business actively.
en

2016

An

so
n

Rd

Established AFS
PROPERTIES, a subsidiaryof AFA in Singapore

Malaysia

AFN PROPERTIES
LTD.

Seletar airport
Singapore
Changi Airport

Description of main Business
Construction, acquisition
and real estate business ofaviation-related facilities

CanadaVancouverHead oﬃce

Langley Regional Airport
Vancouver Island

The U.S.

Head oﬃce

CanadaSeattleANNUAL REPORT 20208

Outline of Consolidated Financial Statement and the Forecast on the Performanceand Dividend Next Year
Outline of Consolidated Financial Statement(¥ Million)❶
24,85525,69024,213

FY ended March 31, 2019
FY ended March 31, 2020
FY ending March 31, 2021 (Outlook)

❷
4,186

4,129

3,960

❸
3,802

3,338

❹
2,227

3,210
2,104

1,310

Net sales

Operating income

Ordinary income

Profit attributable toowners of parent

Outline of Consolidated Balance Sheet(¥ Million)

Total assets

1 Total assets

104,483

101,384
Current assets

Current liabilities

Current assets

20,844

11,192

22,243

Non-current
liabilities

80,539Non-current
assetsNet assets

55,740

As of March 31, 20199

AIRPORT FACILITIES CO., LTD.

11,887
Non-current
liabilities

2

36,262

34,451

Non-current
assetsCurrent liabilities

82,240Net assets

56,333As of March 31, 2020

3

Outline of fiscal year ended March 2020
1 (Net sales) We achieved a 2.6% increase from the previous term with the progress oftenants moving in, increases in some of the rents in existing facilities, start of the leaseof an equipment warehouse and in-flight meal factory, start of the full-year operationof hotels in Kyoto and the leasing business for Civil Aviation College, extension of a
hangar in Kobe Airport, increase in the use of the local area communication network,etc.
2 (Operating income) Although there had been increases in repair expenses in thereal estate business and increases in depreciation expenses in the area heating andcooling business, an increase in net sales and decreases in repair expenses and raw
material expenses contributed to a 1.3% increase from the previous term.
3 (Ordinary income) Up 13.8% due to an absence of bond issuance cost which wasrecorded in non-operating expenses in the previous term and a decrease in provision
for removal cost.
4 (Profit attributable to owners of parent) Although we reported an extraordinary
loss due to damages from a typhoon in the autumn of 2019, we were able to achieve
a 5.8% increase from the previous term.
Outlook for the next term
As for the fiscal year ending in March 2021, although we were scheduling to achievea significant increase in net sales with the full-year operation of new properties thatwere newly offered for rent during the fiscal year ended in March 2020 and the start ofbusiness in Haneda Innovation City, we are now expecting an increase in net sales anda decrease in profits considering the decrease in the sales of water supply and sewage
business due to the COVID-19 pandemic, the possibility of exempting rent claims oftenants, etc.
Financial position as of March 31, 2020
1 (Total assets) Increased by ¥3,099 million, with the completion of the expansionof the hangar building in Kobe Airport and the construction of a technical center
warehouse building, expansion and reconstruction of the in-flight meal factoryin ARC Building, new construction of an aircraft sewage treatment facility, andadditional investment in Haneda Innovation City.
2 (Liabilities) Increased by ¥2,505 million due to an increase in long-term loans
payable associated with acquisition of the new property.
3 (Net assets) Increased by ¥593 million mainly due to an increase in retained earnings,
resulting in a decrease of equity ratio to 51.5% (1.1 points).

Outline of Consolidated Cash Flow

1 Net(¥ Million)❷ Cash flowsfrominvesting activities

6,900

5,824

-8,217❶ Cash flows
fromoperatingactivities❸ Cash flowsfromfinancing
activities

33

Increase in cash
and cashequivalentsfrom newly
consolidated
subsidiary

18

1,958
Effect ofexchange ratechange on
cash andcash equivalents

6,518❹ Cash andcash equivalents
at end of ’20/3

Cash andcash equivalents
at beginning of ’20/3

Changes in Major Financial Indicators
Equity Ratio

51.5%

EBITDA + recovery

7.8- 1.1 points year on year¥
billion+ 4.5 % year on year

As a result of the increase of total assets by¥3,099 million (3.1%) and equity capital by¥467 million (0.9%), the equity ratio decreasedby 1.1 points.

EBITDA + recovery increased by 4.5% from theprevious term, with the increase of operating
income before depreciation and recovery fromoverseas finance.

cash provided by operating activities was ¥6,900 million(previous fiscal year: ¥5,176 million provided), mainly attributable
to income before income taxes, depreciation and amortization,and collection of operating loans receivable, despite cash outflows
associated with the payment of income taxes and acquisition oflease investment assets.
2 Net cash used in investing activities was ¥8,217 million (previous
fiscal year: ¥13,490 million used), mainly attributable to purchase ofnon-current assets associated with extension and reconstruction of
ARC Building.
3 Net cash provided by financing activities was ¥1,958 million(previous fiscal year: ¥9,524 million provided), mainly attributable
to an increase in long-term debt associated with acquisition of the
new property.
4 As a result, cash and cash equivalents increased ¥694 million to¥6,518 million.

Outlook for consolidated business results anddividend for the year ending March 31, 2021
Net sales¥25,690 million (+3.3% year on year)

Operating income¥3,960 million (-5.3% year on year)

Ordinary income¥3,210 million (-15.5% year on year)

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

Payout Ratio (Forecast)53.1%

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

SearchHome

Investor Relations

ANNUAL REPORT 2020

10

Initiatives for ESG/SDGs
Donated the CO₂ emission reduction
to the Tokyo Metropolitan Government

Completed SD plantat Tokyo International Airport

Regarding environmental efforts, in addition to initiatives regarding
renewable energy, our group is making efforts actively to reduce CO₂
emissions through business investments in environmental measures, improvement ofoperation methods, educational activities for raising environmental awareness among
employees in daily work, etc.
Such efforts resulted in an emission reduction by our company and Tokyo Airport
Heating & Cooling Co., Ltd., our group company, exceeding the required reduction
based on the Cap-and-Trade Program of the Tokyo Metropolitan Government. We donated the excessive reduction to the Tokyo Metropolitan Government this March.

Preparing for an increase in aviation demands in the future, our company
completed the construction of a new aircraft sewage treatment facility(SD plant), with reinforced treatment capacity, in March 2020. SD plants that treat sewage by utilizing microorganisms to comply with effluent standards are facilities taking
advantage of the know-how of our company acquired through many years’ experience, and are working in eight different airports throughout Japan.

Total reduction of CO₂ emissions by Airport Facilities Group(t)

125,000
Donation

105,000
85,00065,000

Actual reduction

Excessive
reduction

45,00025,0005,000

Required reduction(t)Actualreduction

114,425

Required
reduction

27,958

Excessive
reduction*2

94,831First period of the plan (FY2010 〜 FY2014)

Flow of aircraft sewage treatment
Purification process

We received a letter of gratitude from the Tokyo Metropolitan
Government this April. Our company will continuously work actively on reducing CO₂ emissions, and contribute to resolving
the climate change issue.

Sewage*1 Cap-and-Trade Program of the Tokyo Metropolitan Government: An initiative to make it mandatory for large-scale facilities inTokyo to reduce their CO₂ emissions, and credit the reduction in emissions achieved over the required level for trade among
businesses.
*2 As for excessive reduction during the first period, the total of the required reduction and the excessive reduction is larger than
the actual reduction because the emission factor was reviewed due to the occurrence of the Great East Japan Earthquake(please refer to the “Guidelines on the Operation of Emission Trading in Mandatory Reduction Targets and Emission Trade
System”).

11

AIRPORT FACILITIES CO., LTD.

Aircraft

Vehicle transport

SD plant

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

Planning to install solar panels on the rooftop
of a cargo facility in Tokyo International Airport
Solar panels are
installed on theroof of the domestic cargofacility of Tokyo International Airport, which is owned
by our company. The facility
generates 1,195,000 kWh ayear, covering some of theelectric power consumed by
the facilities of our company,
and will contribute to the inRed frame shows the area where the solar panels are installed.
troduction of clean energy.
This project is also being applied for the “Project to Expand the Introduction of Local
Production and Local Consumption-type Renewable Energy” called for by the Tokyo
Metropolitan Government, and it is scheduled that subsidies will be granted.

Installing emergency facilities
for the time of disaster
Our company, based on highly public businesses in airports, and supporting the safe airport operation and flight operation of airline companies, is engaged in expanding emergency facilities for the time of disaster, as a part of
BCP (Business Continuity Plan) in preparation for a large-scale disaster at an airport.

Emergency supplies including foods stored inside elevators[Reference: Our solar power generation facilities]
Completion of
construction andstart of operation

Name of the facility

Location of installation

Annual power generation

2013

10

Honsanrizuka solar power plant

Narita city, Chiba

Approx. 800,000 kWh(for 230 households)

2014

3

Kagoshima Airport No.1/No.2
hangar and warehouse (Rooftop)

Kagoshima Airport

Approx. 300,000 kWh(for 90 households)

2016

1

Solar power plant

Mizunami City,
Gifu Prefecture

Approx. 1,600,000 kWh(for 430 households)

2018

1

TRC Distribution B Bldg. rooftop
solar power plantHeiwajima, Ota-ku

Approx. 2,500,000 kWh(for 620 households)

Hybrid outdoor lights compatible
with both wind-power and solar
power generation

ANNUAL REPORT 202012

Corporate Governance
Basic Philosophy

Executives (As of June 26, 2020)

We are fully aware of our management responsibility relegated from shareholders and social responsibility
as a company with its business based on services in airports. With our mission and corporate philosophy

President and CEO(Also assuming the post of Chairman)

Masaaki Kai

Executive Vice President

Toshiaki Norita
Kenya Inada

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.

Senior Managing Director
Managing Director
Managing Director

We maintain the system where adequate business judgment and management supervision are

Directors

Structure of Organization
constantly ensured, by regularly holding the Board of Directors meeting and Board of Corporate Auditors
meeting, and holding them on a temporary basis when necessary. The number of directors shall be
external directors. There are currently
13 directors. Also, based on the criteria
Tokyo Stock Exchange, we appointed

Board ofCorporate Auditors

Accounting Auditors
Board of Directors

Nomination Committee

addition, we adopt the Corporate

maintaining and enhancing the internal
control system shouldered by the
Audit Office monitoring our businessactivities, Compliance Committee, andRisk Management Committee.
13

AIRPORT FACILITIES CO., LTD.

Audit Office

Full-time Statutory Auditor
Statutory Auditor (Independent Officer)
Statutory Auditor (Independent Officer)

Risk Management Committee
Safety Promotion Committee
Improvement Promotion Committee
Environmental Committee

Overseas Investment Management Council
Managers Meeting

Disaster Countermeasures Committee
Board of Corporate Officers

Departments and Consolidated Subsidiary(Newly appointed)

Tadao Nishio
Koji Shibata(Newly appointed)

Takehiko Sugiyama
Kayo Aoyama
Kazuhiko Muraishi
Hiroyuki Hoshi(Newly appointed)

Akihiko Shiba
Satoshi Iwamura

Corporate Officer
Corporate Officer

Toru Komiya

Corporate Officer

Hideaki Hirano

Corporate Officer

Keisuke Kuma

Corporate Officer

Management Strategy Council(Newly appointed)

Yukihiko Takada
Ryuichi Yasuda
Takahiro Hama
Takashi Yasuda
Atsuo Ichise
Shigeyuki Kodama

Senior Corporate Officer

Compliance Committee

New Information System
Exploratory Committee

Full-time Statutory Auditor

Senior Corporate Officer

President

Corporate Officers

appropriateness and efficiency byCompensation Committee

Board of Executive Directors

making, etc. Furthermore, we strive
to ensure managerial compliance,

Katsuhiro Yamaguchi

External Director (Independent Officer)

General Meeting of Shareholders

2 independent external directors. In
Officer System aiming at rapid decision-

Director

External Director (Independent Officer)

Corporate Auditorsof independence set forth by the

Director

External Director

Diagram of Internal Control System

Toshiyuki Nagayoshi
Keisuke Komatsu
Mitsuhiko Okada
Shigeo Tamura
Hiroki Osawa

Managing Director

External Director

17 or less, including both internal and(Newly appointed)

Corporate Officer
Corporate Officer(Newly appointed)(Newly appointed)(Newly appointed)(Newly appointed)

Financial Highlights (Five years)
Net sales (¥ Million)
30,00020,00020,697

Operating income (¥ Million)
21,662

22,791

24, 21324,855

4,000

0

16/3
Ordinary income (¥ Million)

17/3

18/3

4,000

3,492

3,726

3,173

19/3
3, 338

0

20/3
3,802

17/3

18/3

19/3

20/3

Business investment in plant and equipment/Depreciation expense (¥ Million)
13,611Business investment in plant and equipment

7,153

18/3

19/3

20/3

2,104

2, 227

16/3
Total assets (¥ Million)

17/3

18/3

19/3

20/3

85, 21487, 580

87,961

101, 384

104,483

16/3

17/3

18/3

19/3

20/3

58. 5

58.7

59.4

52.6

51. 5

16/3

17/3

18/3

19/3

20/3

3.91

4. 24

4. 28

3.98

4.15

16/3

17/3

18/3

19/3

20/3

80,0002,973 3, 551

3,048 3, 503

4, 504 3, 547

16/3

17/3

18/3

19/3

20/3

51,64453,41554,48255,74056, 333

16/3

17/3

Net assets (¥ Million)

4,033

4,011

40,00020,00018/3

19/3

Debt to equity (Times)
0. 8

0.481

0. 6

17/3

2, 219120,000

Depreciation expense

10,000

0

4,186

2,151

1,000
0

60,000

4,129

1,935

0

16/3

0.466

0.443

0. 519

16/3

3,000

2,000

0

4,103

Profit attributable to owners of parent (¥ Million)
2,000

5,000

3,825

2,000

10,00015,000

2,944

20/3
0.669

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

ROE (%)
6
4

0. 4

2

0. 2
0

16/3

17/3

18/3

19/3

20/3

6,161

6,737

7, 501

7,835

EBITDA + recovery (¥ Million)

8,000

5,176
4,000
0

0

Annual dividend (¥: left axis) /Payout ratio (consolidated) (%: right axis)
20
10

16/3

17/3

18/3

19/3

20/3

0

12.00
32.0
16/3

13.00

14.00

Annual dividend

14.00

Payout ratio

14.00

100
50

31. 2
17/3

32. 3
18/3

33.1
19/3

31. 2
20/3

0

ANNUAL REPORT 202014

Corporate Profile (as of March 31, 2020)
Corporate Name: Airport Facilities Co., Ltd. (AFC)Main Banks: Development Bank of Japan
Mizuho Bank

Established:

February 1970

Capital:6,826.10 million yen

Employees:

144 (Consolidated)
200 (Consolidated and unconsolidated)

MUFG Bank
Resona Bank
Sumitomo Mitsui Trust Bank
Sumitomo Mitsui Banking Corporation

Stock Information (as of March 31, 2020)
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:

7,531

1,603

3.02

Share Unit Number

100 shares

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

1,355

2.55

Composition of Shareholders
Japanese Government andLocal Public Bodies

0.00%

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

The Company (Treasury Stock)

600

Individuals

500

5.92%

Securities Companies

15.82%

0.68%

Foreign Investors

400
012.44%
Other
Japanese
Corporations

42.87%

Financial Institutions

22.28%

19/4

19/5(Thousand shares) Trading volume

1,500
1,000
500

0

19/6

19/7

19/8

19/9

19/10

19/11

19/12

20/1

20/2

20/3