WE SUPPORT AVIATION INDUSTRYANNUAL REPORT 2016

Year Ended March 31, 20162015.4.01 2016.3.31

AIRPORT FACILITIES CO., LTD.

Message from the President & Highlights of

Our Mission

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

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

and trusted company that always
provides value which satisfies
customers and complies withpublic expectation.
3 We will foster our staff, and en-courage and reward the efforts
they make and the challenges
they tackle.

We strive to reinforce our

CONTENTS
Message from the President &Highlights of Business Result. . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Business results, annual dividend and businessBusiness Outline. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Business results of our Group in the fiscal year ended

Recent Efforts for Achieving Long-term
Stable Growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

March 2016, net sales and operating income bothSpecial Topic: Project Report

streamlining of airline companies under the severe

environment of fiscal year ended March 2016

decreased from the previous term, affected by the

Further Efforts in Overseas Businesses. . . . . . . . . . . . . . . . . . . 7

competition environment. However, with an increase

Future Business Direction toward
Further Value Creation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

in commission fee, ordinary income and net profit
increased from the previous term.

Outline of Consolidated Financial Statement
and the Forecast on the Performanceand Dividend Next Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

As for dividend, we continuously strive to stably
return ¥12.0 per share annually to our shareholders.

Financial Highlights (Five years). . . . . . . . . . . . . . . . . . . . . . 13

Tokyo International Airport, our company’s busi-

Corporate Governance.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

ness base, is considering to further expand its airport

4 As a member of civil society, wefunction following significant increase in the number

President and CEO

observe rules and respect fairness.

of inbound passengers to Japan. Airline companies
face the issue of responding to the lack of pilots dueto the increase in demand for aviation service, andNet 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.

Operating income

20.6

¥

billion- 2.0% year on year

2.9¥

billion- 7.0% year on year

Business Result

business foundation, aiming to achieve stable long-term growth.
demand for training is increasing accordingly. In

Tokyu Stay Kamata is about to be completed in the

addition, demand for aviation service abroad, espe-

near future in Haneda Asahi-cho, along with thecially in Asia, is growing more than ever, and demand

increase in accommodation demand.

leasing training facilities for Airbus Group.
Business development in the future

Among regional airports, we started construction

Going forward, further reinforcement of Tokyo Inter-of a hangar in Kitakyushu Airport, and constructed anational Airport’s function is expected along with

Our Group grasps these demand trends

solar power plant plant in Mizunami City, Gifu Prefec-

the increase of inbound passengers to Japan, andadequately, and implements business by trying toture While trying to expand the customer base, we aretraining/maintenance needs among airline compa-

utilize the existing facilities and expand the customer

also starting new businesses.

nies will increase according to demand expansion forfor airport-related facilities including pilot training
facilities is increasing.

aviation service. This will also lead to an increase in

base.
Business development abroad

demand for aviation-related facilities, so we consider

Business development in Japan

In overseas, we provide aviation-related facilities suchthese as an important opportunity for the business of

There is a new movement in Tokyo International

as hangars and engine maintenance plants to Airbus

our Group. From the fiscal year ending March 2017,

Airport to interpret the air cargo storage as a baseGroup at Singapore Seletar Airport. The current issue

we are expecting increases in both net sales andfor distributive processing. By further utilizing thethere is a lack of pilots, as is in Japan, due to worldwide

operating income with the start of the operation of

air cargo storage, our company is putting effort into

increase in demand for aviation service. As an effort tonew facilities and the expansion of business abroad.

expanding the use of our facilities. At regions near

respond to the needs for the training of such pilots,

For further business recovery, we will implement ourTokyo International Airport, a second hotel following

our company newly started financing simulators andbusiness by uniting the efforts of the entire Group.

Ordinary income

3.1¥

billion+ 0.3% year on year

Profit attributable to ownersof parent

1.9¥

billion+ 28.6% year on year

Cash dividends per share

ROE

12.00

3.9%

¥

The same as the previous fiscal year

+ 0.8 points year on year

Operating income
before depreciation

6.9¥

billion+ 0.17% year on year
ANNUAL REPORT 20162

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(‘16/3)

Area Heating &Cooling Business

15.3%

Net Salesby Business
Segment(’16/3)Major companies
Airport Facilities Co., Ltd.,AIRPORT FACILITIES ASIA PTE. LTD.

Domestic Air Cargo Terminal(Tokyo International Airport)

Real EstateBusiness

Major business investments (‘16/3)
Haneda Asahi Cho hotel
Kitakyushu Airport hangar
Overseas (Singapore)

74.0%

Overseas location

12 Airports where we deploy our business

Other regional
airports

3.3%
Overseas 0.7%
Osaka
International
Airport1.6%

KansaiInternational
AirportOutside Airport

New Chitose

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

Kobe
Tokyo Int’l Airport,
Tokyo Metropolitan area

Kitakyushu

Net Salesby Region

Tokyo
International
Airport82.7%

KagoshimaNaha

Net sales/Operating income (¥ Million)
Net sales

20,000Operating income

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

Singapore:
Seletar airport

Kansai Int’l
Hiroshima Heliport

Fukuoka(’16/3)

2.0%

9.7%

billion(-1.6% )Core businessLeasing of real estate such as multi-purpose general buildings, hangars, maintenance plants, apartments, hotels, andplant buildings in airports in Japan andabroad and regions along the railway line
connected to the airport

Component Maintenance Building

Water Supply &Drainage Service andOther Business

10.7%

15.3

¥

2014/3

2015/3

2016/3

Although simulator facilities at Tokyo International Airport and two properties abroad
started operation, with the business cancellation of the contracts in previous term and therent reduction, net sales and operating income
both decreased.

Area Heating& Cooling BusinessNet sales(‘16/3)

3.1¥

billion(-0.8% )Core business
Provision of cooling and heating functions at Tokyo International Airport (areaheating and cooling business)

Energy Center (Tokyo Airport
Heating & Cooling Co., Ltd.)

2.2

Water Supply & Drainage Net sales¥
Service and Other Business (‘16/3)

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

Water supply & drainage facilities
in the reclaimed land area offshore(Tokyo International Airport)

Major companies
Tokyo Airport Heating & Cooling Co., Ltd.
Major business investments (‘16/3)
Renewal of chiller and cooling tower

High-efficiency Electric Turbo Chiller

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

Runway D

Major companies
Airport Facilities Co., Ltd.
Major business investments (‘16/3)
Solar power plant in Mizunami City, Gifu
Prefecture

Shared Communication Service(Tokyo International Airport)

Areas covered by our local area communication network

Runway C
Domesticcargo area

Domestic
passenger area

Runway D
New aircraft
maintenance area

Runway C
Domesticcargo area

Runway A
Runway B

International
passenger and cargo area

Former aircraft maintenance area
(1-chome district)

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

2,000
1,000
2014/3

2015/3

2016/3

New aircraft
maintenance area

International
passenger and cargo area

Net sales/Operating income (¥ Million)
Operating income

3,000

0

Domestic
passenger area

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

Net salesbillion(-5.6% )While the area heating and cooling business at
Haneda Airport 1-Chome District was terminated, with the sound business of Tokyo Airport
Heating & Cooling Co., Ltd. and reduction in theprice of electricity and fuel gas bills net sales decreased but operating income increased.

Net sales

2,500

Operating income

2,000
1,500
1,000
500
0

2014/3

2015/3

Both net sales and operating income decreased
due to partial cancellation of a shared telecommunication networks and increase in depreciation expenses associated with renewal of facilities, despite
steady growth of water supply and drainage service
and start of operation in the solar power plant in
Mizunami City, Gifu Prefecture.

2016/3

ANNUAL REPORT 20164

Recent Efforts for Achieving Long-term Stable Growth

Aviation industry
that will continue todevelop in the future

1

Recent efforts in Tokyo International Airport
and regions along the railway line connected to the airport

Worldwide air passenger demand (2015 – 2034)

Annual average
growth of

4.9%

is expected*

Worldwide air cargo demand (2015 – 2034)

Annual average
growth of

4.7%

is expected**Source: “CURRENT MARKET OUTLOOK 2015 – 2034” by The Boeing Company

Our Group will continuously strive to achieve
long-term stable growth, by capturing business opportunities in Japan and abroad, andby continuously creating values with theoriginal know-how of the “supporting aviation industry.”32
1

Efforts for the further utilization of air
cargo storage
CSN ChihouSouseiNetwork Co., Ltd., which moved
into the air cargo storage last June, is working to expand demand by utilizing the cargo storage facing
the aircraft parking spots
as a base for distributive
processing and connecting the production area
and consumption areaof fishery products.
[Outline]

5

AIRPORT FACILITIES CO., LTD.

East Cargo Area (reference photo)

The second hotel located along therailway line connected to the airport
is under construction
With the expected increase in demand of accommodation mainly for inbound users (those who visit
Japan from abroad) inareas along the railroad
line connected to Tokyo
International
Airport,the second hotel is currently under construction and scheduled to becompleted in July 2016.
Image of the lobby floor

Occupancy: June 2015

[Outline]

Use: “Haneda Fresh Fish Center,” a fresh fish sorting facility
within the airport

Scheduled completion date: July 2016 (planned)

Location: Ohta-Ku, Haneda Asahi-Cho, Tokyo2 Recent efforts in regional airports and3 Efforts abroad

local cities

Kitakyushu Airport
Singapore Seletar Airport

Airports where we deploy our business(12 airports in Japan)

Operation of facilities and expansion of customer
base at regional airports

Coping with the needs in accordance with the increasing
international demand for pilots

In December 2015, our company started the construction of a
hangar in Kitakyushu Airport. This hangar is scheduled to be used
as an aircraft maintenance hangar, and the airport is one of thebases for conducting thetest flight of the mass-production aircraft of MRJ(Mitsubishi Regional Jet)
by Mitsubishi Aircraft Corporation.

Demand for aviation service is growing abroad, especially in Asia, and the international shortage of pilots
is becoming an urgent issue. Under such situation,
we started the leasing of pilot training facilities for
Airbus Asia Training Centre in April 2016.

[Outline](Photo courtesy: Mitsubishi Aircraft Corporation)

Seletar Airport

Facilities provided by our company(Engine maintenance plant)
Facilities provided
by our company(Hangar)[Outline]
MRJ

Please referto the Special
Topic on pp.
7-8.

(Training facility)
Construction completed in: April 2016

Start of construction: December 2015

Use: Pilot training facility

Use: Aircraft maintenance hangar

Leased to: Airbus Group Singapore Pte. Ltd.

Facilities provided by our company(Pilot training facility)

Offering services at Singapore Seletar Airport

ANNUAL REPORT 20166

Special
Topic

Project Report– Further efforts in overseas businesses –Provide aviation-related facilities in responseto the booming demand in Asia
Aviation-related demand is increasing worldwide, and, especially in Asia, it is expanding more thanever following the increase of population.
In specific, in addition to demand for facilities related to the production and maintenance of aircraft,there is a need for training facilities in order to resolve the problem of pilot shortage.
Accordingly, in order to take in such booming aviation-related demand,
our company is actively developing its business overseas.
We established a locally-incorporated company in Singapore (AFA)
and in Canada (AFN).

Business Developmentin Singapore

December 2014

March 2014

November 2013

Started the leasing of aircraft engine maintenance, repair
and overhaul (MRO) plant for Vector Aerospace Asia

[Outline of overseas subsidiary] *As of March 31, 2016
Company name: AIRPORT FACILITIES ASIA PTE. LTD.(AFA)
Established:

November 2013

Representative: Hiroshi Maruyama(President and CEO of the Company)

7

Capital stock:

4,218 million yen(23.7 million Singapore dollars)

Shareholder:

Airport Facilities Co., Ltd. (100%)

AIRPORT FACILITIES CO., LTD.

Started providing hangar for Airbus Helicopters[MRO business]
MRO stands for maintenance, repair and overhaul. It includes various industries related to themaintenance and repair of aircraft.

April 2016

Frontline Efforts

VOICE

Started the leasing of pilot training facilities for NEW
Airbus Asia Training Centre

A telephone meeting with the overseas worksite

Executing an agreement overseas

The starting point of our overseas business goes backThe facility that started to be leased from April 2016 within the premises of Singapore Seletar Airport
is a pilot training facility equipped with the highest level of technology, which can hold ten units of full
flight simulators for Airbus aircraft (existing and new models). In addition, the company is financing thesimulator to be installed and used in the facility from August 2015.
[Airbus Asia Training Centre]• A flight training facility jointly established by Airbus (55%) and Singapore Airlines (45%).
• Provides pilot type rating and recurrent training courses for all in-production Airbus jetliner types.

to 2011, when the company started providing hangars
for Airbus Helicopters in Kobe Airport. Since then, thecompany has been actively working on business toprovide facilities to customers abroad on-site, backed up
by technologies and know-how developed through ouryears of experience in Japan. We consider the recent rapid
increase in aviation-related demand worldwide, especiallyin Asia, as a significant business opportunity. We would
like to actively reach not only aircraft manufacturers but
also MRO business operators to expand our client base.

ANNUAL REPORT 20168

Future Business Direction toward Further Value Creation
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.

Changes in Business Environment
Airports

Reinforcement andexpansion of airports inTokyo Metropolitan Area

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

Airline Companies

Training and maintenancedemandCoping with the lack of pilots
Reinforcement of new and innovative equipment with superior fuelefficiency

Overseas

Demand abroad

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

Trend in the number of air travelers, number or arrivals and departures,and the volume of handled cargo in Tokyo International Airport
Number of air travelers and number of arrivals and departures(Million)

70

Number of international passengers (Ten thousand times)
Number of arrivals and70
departures of international flights

Number of domestic passengers
Number of arrivals anddepartures of domestic flights

60

60

50

50

40

40

30

30

20

20

10

10

0

12/3

13/3

14/3

15/3

16/3

0

(Forecast)
Source: “Report on the State of Airport Management by Calendar and Fiscal Years” by the Ministry ofLand, Infrastructure, Transport and Tourism *The forecast for the fiscal year ended March 2016 is madeby our company.

9

AIRPORT FACILITIES CO., LTD.

Volume of air cargo handled(thousand tons)

Domestic air cargo

International air cargo

800
600
400
200
0

12/3

13/3

14/3

15/3

16/3

(Forecast)
Source: “Report on the State of Airport Management by Calendar and Fiscal Years” by the Ministry ofLand, Infrastructure, Transport and Tourism *Not including the volume handled as postal items *The
forecast for the fiscal year ended March 2016 is made by our company.

Tokyo International Airport
Plan to increase arrival/departure slots by 39,000 to 447,000
Increase in passenger-related business (hotel)
Increase in those engaged in aviation-related business(bachelor apartments for employees, etc.)

Further expansion of airport capacity is being considered
Simulators and other training facilities

Future approaches by the Company
Promotion of businesses in the airport and regions near the airport
Efforts in Tokyo
International Airport• Providing airport function
facilities (simulator
facilities, etc.)• Further utilization of air
cargo storage (regional
revitalization)• Coping with the problemof vacant rooms

Efforts in regions
near Tokyo
International
Airport• Construction of a
hotel
(Haneda Asahi Cho)
• Construction ofapartments(along the Airport Line)Taking on the new frontier

Efforts at regional
airports

Further efforts inoverseas businesses• Construction of a hangar(Kitakyushu)• Participation in theconcession based onlaws on the operation of
airports utilizing privatesector initiative

Efforts towards the
expansion of customer base

• Providing facilities inreaction to the strong
demand for aviation services
abroad• Further excavation ofprojects in Singapore• Providing facilities in Canada• Facilities related to aircraft
manufacturers in Japan andabroad• Sales to MRO business
operators

Exploit the know-how developed in Japan also in overseas market. Expand the values we provide internationally
MRO business support for the new customers (provision of facilities)

2011

2014

2014

Strive forfurther expansion

Forecast of demand for commercial aircrafts abroad (2014-2034)(Thousands)

50

Worldwide demand:

40

Doubling

Demand in Asia: Approx.

20

developing into the world’s
18%
largest market

10

TAMAGAWA AERO SYSTEMS[Haneda]Vector Aerospace Asia
[Singapore]

17%

30

threefold,9%

Airbus Helicopters Japan[Kobe]

Approx.40 thousands

0

18%

28%
2014

Latin America
Middle East /Africa
Europe22%
28%

Russia, etc.

35%

North America
Asia

2034

(Source: Average figure calculated from the data released by BOEING/AIRBUS)

ANNUAL REPORT 201610

Outline of Consolidated Financial Statement and Outlook for the Performance andDividend Next Year
Outline of Consolidated Financial Statement(¥ Million)

1
20,697

FY ended March 31, 2015

21,63021,111

FY ended March 31, 2016
FY ending March 31, 2017
(Outlook)
2
2,944
3,165

3,490

3
3,173
3,164

3,290

4
1,935

2,130

1,505

Net sales

Operating income

Ordinary income

Profit attributable toowners of parent

Outlook for the next term
As for the fiscal year ending March 2017, we expect increase in both income
and profit, with the start of the operations of new facilities, annual sales
secured with tenants moved into existing facilities, and further expansion ofoverseas business.

Outline of Consolidated Balance Sheet
Total assets(¥ Million)

1 Total assets

84,270Current assets
10,996

85,214Current liabilities
11,509Current assets
16,567

Non-current assets
73,273

Net assets
50,715

As of March 31, 201511

AIRPORT FACILITIES CO., LTD.

Current liabilities
8,462
Non-current
liabilities
25,107

Non-current
liabilities
22,045
Non-current assets
68,647

Net assets
51,644As of March 31, 2016

Outline of fiscal year ended March 2016
1 (Net sales) Despite the start of the operations of simulator facilities inTokyo International Airport and a small-sized hangar and engine plantin Singapore, stable growth of the area heating and cooling business,and increase in water usage due to increase in the number of travelers,
net sales decreased by 2.0% from the previous term due to the impact oftenants moving out during the term, decrease in rent, and the terminationof heating and cooling business at Haneda Airport 1-Chome District.
2 (Operating income) While there were factors for increase in income,including the reduction of electricity and fuel gas bills, the operating income
decreased by 7.0% from the previous term due to repair expenses due tothe moving in of tenants and increase in depreciation expense associatedwith renewal of equipment for shared telecommunication network.
3 (Ordinary income) Increase in commission fee and the reactionary declineof provision for removal cost contributed in the increase of ordinary income
by 0.3% from the previous term.
4 (Profit attributable to owners of parent) Profit attributable to owners ofparent increased by 28.6% due to the recording of extraordinary income
from the sale of non-current assets and also on the rebound from theprevious term marking loss on retirement of non-current assets.

2

Financial position as of March 31, 2016
1 (Total assets) Total assets increased ¥944 million (1.1%) as a result of new3

investments in a consolidated subsidiary in Singapore as well as in hotelbusiness and solar power generation business in Japan.
2 (Liabilities) Liabilities slightly increased ¥15 million (0.0%) mainly due to anincrease in long-term loans payable and guarantee deposits received.
3 (Net assets) Net assets increased ¥929 million (1.8%) mainly due to anincrease in retained earnings, resulted in increase of equity ratio to 58.5%(0.2 points).

Outline of Consolidated Cash Flow

1 Net cash provided by operating activities was ¥809 million, attributable

to increases income before income taxes and depreciation.

(¥ Million)
1 Cash flows

2 Net cash used in investing activities was ¥2,453 million, attributable

3 Cash flows

fromoperating activities

to the acquisition of non-current assets.

fromfinancing activities

3 Net cash provided by financing activities was ¥1,731 million mainly

attributable to new borrowings for the purpose of funding capital
investments and overseas subsidiaries’ business expansion.
4 As a result, cash and cash equivalents as of March 31, 2016 increased¥83 million to ¥5,974 million.

809-2,453

1,731

Effect ofexchange ratechange on
cash andcash equivalents

2 Cash flows

5,891

-4

from
investing activities

Cash andcash equivalents
at beginning of ’16/3

5,974

4 Cash andcash equivalents
at end of ’16/3

Outlook for consolidated business results and dividend
for the year ending March 31, 2017

Changes in Major Financial Indicators
Equity Ratio

ROE

58.5

%

Outlook of Business Results and Dividend
for the Next Term

Operating income before
depreciation

3.9%+ 0.2 points year on year

+ 0.8 points year on year

As a result of the increase of total assets by ¥944 million (1.1%) and equity capital by ¥780 million (1.6%), theequity ratio increased by 0.2 points.

While equity capital increased by¥780 million (1.6%), profit attributable to owners of parent increasedby ¥430 million (28.6%), resulting in
the increase of ROE by 0.8 points.

6.9¥
billion+ 0.17% year on year
Increased by 0.17% with increases in
depreciation and leasing costs.

Net sales¥21,630 million (+ 4.5% year on year)

Operating income¥3,490 million (+ 18.5% year on year)

Ordinary income¥3,290 million (+ 3.7% year on year)

Annual dividend(forecast)¥12.0 (interim ¥6.0, year-end ¥6.0)

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

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Investor Relations

ANNUAL REPORT 201612

Financial Highlights (Five years)
Net sales (¥ Million)
30,00020,000Operating income (¥ Million)

20,80521,067

20,971

21,111

4,000

20,697

2012/3

2013/3

2014/3

2015/3

2016/3

3,164

3,173

0

Ordinary income (¥ Million)
4,000

2,711

3,490

2012/3

2013/3

2014/3
7,527

7,177
3,381

3,000

2015/3

2012/3

3,166 3,222

Business investment in plant and equipment

3,093

1,980

3,433

47,273

2013/3

2014/3

2015/3

2016/347,02647,99850,71551,644

2012/3

2013/3

2014/3

2015/3

2016/3

0.450

0.481

2016/3

1,781

1,505

1,935

2013/3

2014/3

2015/3

2016/374,86473,316

77,621

84,27085,214

2012/3

2013/3

2014/3

2015/3

2016/3

61.4

62.2

59.9

58.3

58.5

2012/3

2013/3

2014/3

2015/3

2016/33.76

3.91

60,00030,0000Equity ratio (%)
80

2012/30.360

2013/3
6,660

6
4
2

2014/3

2015/3

2016/3

6,701

6,895

6,907

Operating income before depreciation (¥ Million)
6,214

0

ROE (%)

0.349

0.2

4,000

13

2012/360(Times)0.394

02015/3

20

0.6

8,000

2014/340

Debt to equity0

2013/3

1,092

90,000Depreciation expense

2,973 3,551

20,0000.4

2,944

Total assets (¥ Million)

40,000

0

1,728

0

2016/3

Net assets (¥ Million)
60,000

3,165

1,000

6,000

0

2012/32,000

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

3,498

Profit attributable to owners of parent (¥ Million)
3,090

2,000
0

3,362

2,000

10,00002,770

AIRPORT FACILITIES CO., LTD.

2013/3

2014/3

2015/3

2016/3

3.90

2.37

0

2012/3

2013/3

2014/3

Annual dividend (¥: left axis) /Payout ratio (consolidated) (%: right axis)
20
102012/3

3.15

0

12.00
35.9

12.00
34.8

2012/3

2013/3

12.00
56.7
2014/3

2015/3
Annual dividend

12.00
41.2
2015/3

2016/3
Payout ratio

12.00

100
50

32.0
2016/30

Corporate Governance
Basic Philosophy

Executives (As of June 29, 2016)

We are fully aware of the managing duties entrusted by our shareholders as well as our social corporate

Senior Managing Director

Tomoyuki Takahashi
Hiroshi Maruyama
Manabu Sato
Toshitaka Watanabe
Toshiyuki Nagayoshi
Hiroyuki Hoshi

Managing Director andSenior Corporate Officer

Kosei Ashikaga

Managing Director

Kazuo Katahira

meeting, and holding them on a temporary basis when necessary. The number of directors shall be

Director andSenior Corporate Officer

Keisuke Komatsu

17 or less, including both internal andExternal Director
External Director

Toshiaki Norita
Hiroyuki Ito

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
Minoru Kitajima
Shigeo Tamura
Keiji Fukumoto
Ryuichi Yasuda

Chairmanresponsibilities in doing our business which handles a large number of passenger traffic and a large

President and CEO

volume of cargo. With our mission and corporate philosophy in mind, we strive to complete our

Executive Vice President

corporate governance to improve our corporate value and for the common benefit of our shareholders.

Executive Vice President
Senior Managing Director

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

external directors. There are currently
of independence set forth by the
Tokyo Stock Exchange, we appointed

Diagram of Internal Control System
Supervision

13 directors. Also, based on the criteria

General Meeting of Shareholders
Accounting Auditors

Board of Directors

addition, we adopt the Corporate
making, etc. Furthermore, we strive

Audit Office monitoring our businessactivities, Compliance Committee, andRisk Management Committee.

President
Board ofCorporate
Officers

Risk Management
Committee
Audit
OfficeManagers
Meeting
Departments and Consolidated Subsidiaries

Bureau:General Affairs
Department,
etc.

Senior Corporate Officer
Corporate Officers

control system shouldered by theBusiness Execution

maintaining and enhancing the internal

Compliance Committee

Board of
Executive
Directors

Internal Control

Officer System aiming at rapid decision-

appropriateness and efficiency by

Board ofCorporate Auditors

Corporate Auditors

2 independent external directors. In

to ensure managerial compliance,

Directors

Structure of Organization

Corporate Officer
Corporate Officer
Corporate Officer
Corporate Officer
Corporate Officer

ANNUAL REPORT 201614

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:

107

Mizuho Bank
The Bank of Tokyo-Mitsubishi UFJ
Sumitomo Mitsui Banking Corporation(Consolidated as of March 31, 2016)

Sumitomo Mitsui Trust Bank

Stock Information (as of March 31, 2016)
Sock Listings:

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

Total Number of Shares Authorized: 124,800,000

Major Shareholders
Number of Shares Owned(thousands)

Ratio of Shareholding(%)

Japan Airlines Co., Ltd.

10,521

19.16

10,521

19.16

Shareholder

Total Number of Shares Issued:

54,903,750

ANA HOLDINGS INC.
Development Bank of Japan Inc.

6,920

12.60

Number of Shareholders:

6,592

KOKUSAI KOGYO HOLDINGS CO., LTD.

1,924

3.50

100 shares

RBC ISB S/A DUB NON RESIDENT/TREATY RATEUCITS-CLIENTS ACCOUNT

1,670

3.04

Share Unit Number

Composition of Shareholders

Stock Price and Trading Volume (Monthly)(¥)

Securities Companies

0.76%

The Company (Treasury Stock)

5.91%

Individuals

15.29%

Foreign Investors

13.39%

800
600
400
200
0

Financial Institutions

Other
Japanese Corporations

44.95%

19.70%

Stock price(Thousand shares)

2,000
1,500
1,000
500
0

15/4

15/5

Trading volume

15/6

15/7

15/8

15/9

15/10

15/11

15/12

16/1

16/2

16/3