July 27, 2023

Financial Results for the First Quarter of the Year Ending March 31, 2024 [J-GAAP](Consolidated)
Company Name:AIRPORT FACILITIES CO., LTD. (AFC)Stock Exchange Listed on:
Tokyo Stock Exchange (Prime Market)
Company Code:8864
URL: https://www.afc.jp/english/
Representative: Shigeo Tamura, President & CEO
Inquiries: Shigeyuki Kodama, Executive Officer, General Manager of Accounting and Financial Affairs Dept.
TEL: +81-3-3747-0251
The Date of Filing the Quarterly Securities Report:
August 1, 2023
The Date of the Dividend Payment Start:－
Preparation of Quarterly Earnings Presentation Material:
No
Holding of Quarterly Earnings Announcement:
No(Figures are rounded off to the nearest million yen.)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2024 (April 1, 2023 – June 30, 2023)(1) Consolidated Business Results(Percentages are changes from the same period of the previous year.)Net salesFirst three months ended

Operating income

Millions of yen% Millions of yen

2.2
6.8

6,331
6,190

June 30, 2023
June 30, 2022
(Note) Comprehensive income:% Millions of yen

1,106
1,003

10.2
(4.2)

% Millions of yen

1,089
946

15.1
(6.6)

First three months ended June 30, 2023: 1,172million yen
First three months ended June 30, 2022: 1,191 million yen

Basic earnings per
shareFirst three months ended

June 30, 2023
June 30, 2022

Profit attributable toowners of parent

Ordinary income

681
777

%

(12.3)
21.1(1.5%)
40.4%

Diluted earnings
per share

Yen

Yen

13.60
15.55

13.57
15.50

(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

As of June 30, 2023
As of March 31, 2023
(Reference) Equity capital:

Equity ratio

Millions of yen

104,413
100,403
As of June 30, 2023:102,468
56,677 million yen

Net assets per share%

Yen

59,29254.2
57,36854.5
6 of March 31, 2023: 54,799
51.4 million yen
As1,130.63
1,095.16
1,055.28

2. Dividends
Dividends per share

Q1

Q2
Yen

FY ended March 31, 2023
FY ending March 31, 2024
FY ending March 31, 2024 (Forecasts)

Q3
Yen

―
―

Q4

Annual

Yen

Yen

Yen

7.00

―

7.00

14.00

7.00

―

7.00

14.00

(Note) Changes in the latest forecasts released: No

3. Forecast of Consolidated Earnings for the Year Ending March 2024 (April 1, 2023 - March 31, 2024)(Percentages are changes from the same period of the previous year.)Net salesFirst half
Full fiscal year

Operating income

Millions of yen%

Millions of yen%

13,011
26,054

2.3
2.1

1,272
2,111

(29.6)(15.6)

Profit attributable toowners of parent

Ordinary income
Millions of yen(Note) Changes in the latest forecasts released: No- 1 -Basic earnings
per share%

Millions of yen%

Yen

1,226 (27.8)
1,984
(6.4)

817
1,296

(37.0)(17.1)

16.32
25.90

＊ Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting from changes in scope of
consolidation): No(2) Application of specific accounting treatments in preparing the quarterly consolidated financial statements: Yes
Note: For details, please refer to “2. Quarterly Consolidated Financial Statements and Major Notes (3) Notes on Quarterly Consolidated
Financial Statements (Application of Specific Accounting Treatments in Preparing the Quarterly Consolidated Financial Statements)” on
page 9.

(3) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
1) Changes in accounting policies with revision of accounting standards, etc.: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Restatement of revisions: No(4) Number of issued shares (common shares)
1) Number of issued shares(including treasury stock)2) Number of treasury stock

As of June 30, 2023:

52,979,350 shares As of March 31, 2023:

52,979,350 shares

As of June 30, 2023:

2,850,639 shares As of March 31, 2023:

2,941,665 shares

50,070,061 shares First three months ended
June 30, 2022:

49,940,747 shares

3) Average number of shares during First three months ended
the period
June 30, 2023:* Financial Results report is outside the scope of an audit by certified public accountants or an audit corporation.
* Explanation of the proper use of earnings forecasts and other special notes
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, and therefore they do not constitute a guarantee that they will be realized. Actual earnings may differ greatly
from the above forecasts for various reasons. For the assumptions for earnings forecasts and cautions regarding the use of the earnings forecasts,
please refer to page 4 “1. Qualitative Information on Consolidated Financial Results for the Quarter Ended June 30, 2023 (3) Qualitative Information
on Consolidated Earnings Forecast”.

- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended June 30, 2023
(1) Explanation about Business Results
During the three months ended June 30, 2023, the Japanese economy continued to be on a gradual recovery trend with
consumer spending, such as travels and dining out, showing solid growth. Meanwhile, there is a risk that the overseas economic
downturn caused mainly by global monetary tightening might put downward pressure on the Japanese economy, and we alsoneed to carefully monitor its effect on surging prices and the fluctuations in the financial and capital markets, etc.
In the aviation industry, the number of passengers fell slightly short of the pre-COVID-19 level but showed a year-on-yearincrease in both domestic and international flights thanks to high demand for homecoming and travelling during the Golden
Week holidays. In May 2023, the legal status of COVID-19 under the law on infectious diseases was downgraded to Class 5,
the same category as seasonal influenza, and we expect passenger demand will continue to be on a recovery trend as recoveryof the socioeconomic activities further progresses.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of ¥6,331
million (up 2.2% from the same period of the previous fiscal year) mainly because there was a continued recovery trend inwater supply and drainage usage despite a decrease in net sales as a consequence of sales of hotels and office buildings forlease in February 2023. Operating income was ¥1,106 million (up 10.2%), ordinary income was ¥1,089 million (up 15.1%)
mainly due to a decrease in provision for removal cost related to various constructions, and profit attributable to owners ofparent was ¥681 million (down 12.3%).
Profit attributable to owners of parent decreased year-on-year as consumption taxes refund in relation to the filing ofamended returns for corporate and consumption taxes was recorded as extraordinary income for the year ended March 31,2023.
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥4,822 million (down 0.7% from the same period of the previous fiscal year)
due to a decrease in net sales as a consequence of sales of hotels and office buildings for lease in February 2023 despite anincrease in net sales due to an acquisition of an office building as part of our efforts related to non-asset business, one of thepriority measures in the Medium- to Long-Term Management Plan (we acquired “Shinjuku Yawaragi Building” as our second
project in June 2023). Operating income was ¥807 million (up 10.2%) due to a decrease in amortization expense related to thefacilities sold.
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport Heating & Cooling Co., Ltd.
recorded net sales of ¥791 million (up 0.2% from the same period of the previous fiscal year), as sales from cold/heat energy
supply slightly increased year-on-year. On the other hand, operating income was ¥204 million (down 15.6%) due to periodic
maintenance expenses for cooling machines and boilers.
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥717 million (up 32.4% from the same periodof the previous fiscal year) and operating income of ¥94 million (up 241.5%) mainly due to a downgrade of COVID-19 toClass 5 as well as water supply and drainage usage returning to the level close to the pre-COVID-19 level and steady growthin the shared telecommunications business.
As for the acquired building mentioned in (i) above, we aim to increase its property value through value enhancement
work. In terms of our initiatives aimed at expanding new business domains, we installed solar power generation equipment on
the rooftop of our engine maintenance shop in a Singaporean consolidated subsidiary (AIRPORT FACILITIES ASIA PTE.
LTD.) and started selling electricity to the tenants of the facility for self-consumption in May 2023.
The Group will continue to make a unified effort to steadily carry out various business strategies based on the Medium- to
Long-Term Management Plan.

- 3 -(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of June 30, 2023 amounted to ¥104,413 million, an increase by ¥4,010 million compared to March 31,
2023, mainly due to recording of prepaid expenses for annual usage fee of national property and an increase in real estate
for sale as a result of an acquisition of an office building in non-asset business despite a decrease in property, plant andequipment due to depreciation of buildings and asset retirement assets.
(Liabilities)
Total liabilities as of June 30, 2023 amounted to ¥45,120 million, an increase by ¥2,086 million compared to March
31, 2023, mainly due to recording of accrued expenses for annual usage fee of national property despite a decrease inpayments of long-term loans payable.
(Net assets)
Net assets as of June 30, 2023 increased by ¥1,924 million compared to March 31, 2023 to ¥59,292 million mainly due
to an increase in retained earnings.
As a result, equity ratio as of June 30, 2023 decreased by 0.3 points to 54.2% compared to March 31, 2023.
(3) Qualitative Information on Consolidated Earnings Forecast
There is no change in the Consolidated Earnings Forecast for the Year Ending March 31, 2024 which was announced
in the Financial Results for the Year Ended March 31, 2023 [J-GAAP] (Consolidated) dated May 11, 2023.

- 4 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)

FY3/23(As of March 31, 2023)

First quarter of FY3/24(As of June 30, 2023)

AssetsCurrent assets
Cash and deposits

8,598,633

6,548,967

Accounts receivable - trade

1,343,102

1,884,515

Lease receivables and investment assets

11,019,327

10,978,413

Operating loans

4,067,980

3,945,708

－

1,689

2,988,214

5,570,766

Raw materials and supplies

12,36012,962Others851,617

4,802,367

28,881,236

33,745,391

Buildings and structures, net

42,133,640

43,263,440

Machinery, equipment and vehicles, net

5,210,042

5,072,067

122,486

112,869

Land

10,805,148

10,805,148

Construction in progress

2,113,525

65,777

Total property, plant and equipment

60,384,843

59,319,303

Software413,782406,767

Others35,32935,364

Total intangible assets

449,111442,132

Investment securities

9,256,745

9,653,631

Deferred tax assets

652,032

485,051

Net defined benefit asset

198,748

189,037

Others590,759

589,410

Allowance for doubtful accounts(10,267)(10,267)

Total investments and other assets

10,688,019

10,906,863

71,521,975

70,668,299

100,403,211

104,413,690

Merchandise
Real estate for sale

Total current assets
Non-current assets
Property, plant and equipment

Tools, furniture and fixtures, net

Intangible assets

Investments and other assets

Total non-current assets
Total assets- 5 -(Thousands of yen)

FY3/23(As of March 31, 2023)

First quarter of FY3/24(As of June 30, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,691,141

720,226

Short-term loans payable

5,066,580

3,231,267

Accounts payable

1,230,829

504,427

Income taxes payable

79,273410,030

Accrued expenses

94,6085,132,140

Unearned revenue

1,022,220

1,138,891

152,002

66,73531,4007,212

179,322

66,529Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for removal cost of property, plant and equipment

318,320

837,826

9,865,698

12,115,287

Bonds payable

6,100,000

6,100,000

Long-term loans payable

16,134,790

15,967,105

Long-term guarantee deposited

6,314,218

6,374,705

Long-term accounts payable-other
Provision for retirement benefits for directors (andother officers)
Deferred tax liabilities

179,994

121,010

1,044

3,717

41,363

41,726

Provision for removal cost of property, plant and equipment

115,447

115,447

Asset retirement obligations

4,281,762

4,281,762

Total non-current liabilities

33,168,620

33,005,473

43,034,318

45,120,760

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,890

6,982,890

Retained earnings

39,660,392

41,044,167

Treasury stock(1,630,050)(1,579,621)

Total shareholders’ equity

51,839,332

53,273,535

2,063,074

2,441,428

896,997

962,0892,960,071

3,403,517

Subscription rights to shares

50,33049,168Non-controlling interests

2,519,158

2,566,708

Total net assets

57,368,892

59,292,930

100,403,211

104,413,690

OthersTotal current liabilities
Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income

Total liabilities and net assets- 6 -(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Remuneration for directors (and other officers)
Salaries and bonuses
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for retirement benefits for directors (andother officers)
Transportation and communication expenses
Depreciation
Taxes and dues
OthersTotal selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Commission fee
Foreign exchange gains
OthersTotal non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Removal cost of property, plant and equipment
Provision for removal cost
OthersTotal non-operating expenses
Ordinary income
Extraordinary income
Consumption taxes refund
OthersTotal extraordinary income
Extraordinary loss
Loss on retirement of non-current assets
Total extraordinary loss
Income before income taxes
Income taxes
Income taxes for prior periods
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

First three months of FY3/22(April 1, 2022 – June 30, 2022)
6,190,393
4,633,595
1,556,798

First three months of FY3/23(April 1, 2023 - June 30, 2023)
6,331,619
4,723,853
1,607,766

65,271
139,365
44,256

61,611
151,374
44,293

7,850

3,807

－

1,023

16,99425,59154,793
199,576
553,698
1,003,099

17,11725,18640,259156,707
501,378
1,106,387－
53,903
4,093
347
17,82776,172035,846
4,001－
21,196
61,04371,440－6,955
53,192986
132,574
946,698

65,623748
11,106－
077,4791,089,951

315,363
1,833
317,197

－
－
－

1,167
1,167
1,262,727
328,522
100,174
428,697
834,030
57,027777,002－－1,089,951
361,056－
361,056
728,895
47,550681,345- 7 -(Quarterly Consolidated Statements of Income)(Thousands of yen)First three months of FY3/22(April 1, 2022 –June 30, 2022
834,030)First three months of FY3/23(April 1, 2023 - June 30, 2023)
728,895

Valuation difference on available-for-sale securities(15,994)378,353

Foreign currency translation adjustment

373,32265,092

ProfitOther comprehensive income

Total other comprehensive income

357,327

443,446

1,191,358

1,172,341

Comprehensive income attributable to owners of parent

1,134,330

1,124,791

Comprehensive income attributable to non-controlling interests

57,02747,550Comprehensive income
Comprehensive income attributable to- 8 -(3) Notes on Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Notes on Significant Changes in Shareholders’ Equity)
Not applicable.
(Changes in Significant Subsidiaries during the Period)
Not applicable.
Although this does not constitute a change in significant subsidiaries, AFC Asset Management Co., Ltd. and AFC
Shoji Co., Ltd., which were non-consolidated subsidiaries for the year ended March 31, 2023, are included in the scopeof consolidation from the three months ended June 30, 2023 as they became significant.
(Application of Specific Accounting Treatments in Preparing the Quarterly Consolidated Financial Statements)
Tax expenses are calculated as income before income taxes for the period multiplied by the estimated effective tax
rate. The effective tax rate is reasonably estimated taking into consideration deferred tax accounting as the rate applicable
to income before income taxes for the consolidated fiscal year including the period ended June 30, 2023.

- 9 -