January 26, 2023

Financial Results for the Third Quarter of the Year Ending March 31, 2023 [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: Toshiaki Norita, President & CEO
Inquiries: Takahiro Hama, Executive Officer, General Manager of Accounting Dept. TEL: +81-3-3747-0251
The Date of Filing the Quarterly Securities Report:
February 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 Third Quarter of the Fiscal Year Ending March 2023 (April 1, 2022 - December 31, 2022)(1) Consolidated Business Results(Percentages are changes from the same period of the previous year.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
First nine months ended

Millions of yen

December 31, 2022
December 31, 2021

19,03917,748% Millions of yen

7.2
△2.1
(2.1)

(Note) Comprehensive income:% Millions of yen

2,596
3,061

(15.1)△9.1(9.1)% Millions of yen

2,424
2,883

(15.9)△10.8(10.8)

%

2,287
1,905

20.0
19.5

First nine months ended December 31, 2022: 4,031 million yen 89.7%
First nine months ended December 31, 2021: 2,125 million yen 18.0%

Basic earnings per
share

Diluted earnings
per shareFirst nine months ended

Yen

Yen

December 31, 2022
December 31, 2021

45.73
38.15

45.63
38.02

(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

101,669
102,468

58,623
6
55,30655.0
51.4

1,119.22
1,055.28

As of December 31, 2022
As of March 31, 2022
(Reference) Equity capital:

Net assets

As of December 31, 2022: 56,003 million yen

As of March 31, 2022: 52,701 million yen

2. Dividends
Dividends per share

Q1

Q2

Q3

Q4

Annual

Yen

Yen

Yen

Yen

Yen

－
－

7.00
7.00

－
－

7.00

14.00

7.00

14.00

FY ended March 31, 2022
FY ending March 31, 2023
FY ending March 31, 2023 (Forecasts)(Note) Changes in the latest forecasts released: No

3. Forecast of Consolidated Earnings for the Year Ending March 2023 (April 1, 2022 - March 31, 2023)(Percentages are changes from the same period of the previous year.)Net sales
Full fiscal year

Operating income

Profit attributable toowners of parent

Ordinary income

Basic earnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

25,2776.3

1,968(40.0)

1,522(48.6)

2,078

152.9

41.56

(Note) Changes in the latest forecasts released: No- 1 -＊ 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.: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: Yes
4) Restatement of revisions: No
Note: For details, please refer to “2. Quarterly Consolidated Financial Statements and Major Notes (3) Notes on Quarterly
Consolidated Financial Statements (Changes in Accounting Policies) and (Changes in accounting estimates)” on page 9.
(4) Number of issued shares (common shares)
1) Number of issued shares
As of December 31, 2022:(including treasury stock)2) Number of treasury stock
As of December 31, 2022:

52,979,350 shares As of March 31, 2022:

52,979,350 shares

2,941,589 shares As of March 31, 2022:

3,038,541 shares

3) Average number of shares during First nine months ended
the period
December 31, 2022:

50,005,429 shares First nine months ended
December 31, 2021:

49,930,940 shares* Financial Results report is outside the scope of a quarterly review 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 and someconditions that we judge rational, and therefore they do not constitute a guarantee that they will be realized. Actual earnings may differ greatly fromthe above forecasts for various reasons. For the assumptions for earnings forecasts and cautions regarding the use of the earnings forecasts, pleaserefer to page 4 “1. Qualitative Information on Consolidated Financial Results for the Quarter Ended December 31, 2022 (3) Qualitative Information
on Consolidated Earnings Forecast”.

- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended December 31, 2022
(1) Explanation about Business Results
During the nine months ended December 31, 2022, the Japanese economy continued to be on a gradual recovery trend despite
the impact of the spread of COVID-19. 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 there are also other factors requiring
close monitoring such as partial revision by the Bank of Japan to its monetary easing policy and its effects on surging prices,supply constraints, and fluctuations in the financial and capital markets.
In the aviation industry, while the number of visitors to Japan is taking an upturn after the government substantially eased
various border controls in October 2022, the recovery in the international flights is expected to take some time due to the slow
pace of recovery in the number of travelers from China and outbound tourism demand. Domestic flights showed a year-onyear increase in demand during the New Year holiday season as tourism demand was put on a recovery track with the domestic
tourism subsidy program by the government and also no tight movement restrictions were imposed despite the continuing highnumber of COVID-19 cases. Passenger demand is expected to continue recovering with the easing of the border control andfurther progress in various initiatives aimed at the economic growth.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of ¥19,039
million (up 7.2% from the same period of the previous fiscal year) mainly because there was no debt forgiveness of rent
receivables from airline companies which was recorded as part of the measures under the COVID-19 crisis in the fiscal year
ended March 31, 2022 and there were also a year-on-year increase in sales volume in the Area Heating & Cooling Businessand a continued recovery trend in water supply and drainage usage. Operating income was ¥2,596 million (down 15.1%) due
to increases in amortization related to asset retirement obligations associated with the start of the Haneda Airport 1-Chomeproject and in raw material costs in the Area Heating & Cooling Business. Ordinary income was ¥2,424 million (down 15.9%)
due to an increase in provision for removal cost related to various constructions although there were a gain recorded in relation
to the settlement of fixed real estate acquisition tax and an increase in dividend income. Profit attributable to owners of parent
was ¥2,287 million (up 20.0%) mainly due to extraordinary income recorded in relation to the filing of amended returns forcorporate tax and consumption taxes for the year ended March 31, 2021 and the estimated effective tax rate reflecting theestimated decrease in tax expense as a result of the conclusion of the sales agreement for rental properties for hotels in Kyoto.
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥14,767 million (up 4.5% from the same period of the previous fiscal year)
mainly because there was no debt forgiveness of rent receivables as part of the measures under the COVID-19 crisis, but
operating income was ¥2,091 million (down 17.2%) due to an increase in amortization related to asset retirement
obligations.
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport Heating & Cooling Co., Ltd.
recorded net sales of ¥2,556 million (up 18.7% from the same period of the previous fiscal year) mainly because there
was no debt forgiveness of rent receivables from airline companies as part of the measures under the COVID-19 crisisand sales volume in both heating and cooling increased year-on-year. On the other hand, a significant increase in raw
material costs due to surging electricity/gas prices resulted in a year-on-year decrease in operating income to ¥383 million(down 27.9%).
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business continued to show a recovery trend in water supply and drainage
usage compared to a year earlier with an increase in the number of airport users as no movement restrictions were issued in
the current fiscal year despite the spread of COVID-19. Net sales including other businesses amounted to ¥1,715 million(up 16.6% from the same period of the previous fiscal year) and operating income amounted to ¥121 million (¥2 million forthe same period of the previous fiscal year).
In terms of our efforts toward the realization of the Medium- to Long-Term Management Plan, we established “AFCAsset Management Co., LTD.,” a subsidiary to pursue one of the priority measures to expand non-asset businesses andstarted operation in June 2022. Also, as an effort to expand into new business domains, we signed an investment
agreement with an aviation fund in early July 2022. The Group will continue to make a united effort to promote its
business activities.

- 3 -(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of December 31, 2022 amounted to ¥101,669 million, a decrease by ¥798 million compared to March 31,
2022, mainly due to amortization related to asset retirement obligations despite recording prepaid expenses for annual
usage fee of national property and an increase in operating loans receivable from new loans.
(Liabilities)
Liabilities as of December 31, 2022 amounted to ¥43,045 million, a decrease by ¥4,116 million from March 31, 2022,
mainly due to payments of long-term loans payable.
(Net assets)
Net assets as of December 31, 2022 increased by ¥3,317 million compared to March 31, 2022 to ¥58,623 million mainly
due to an increase in retained earnings and foreign currency translation adjustment.
As a result, equity ratio as of December 31, 2022 increased by 3.6 points to 55.0% compared to March 31, 2022.
(3) Qualitative Information on Consolidated Earnings Forecast
There is no change in the Consolidated Earnings Forecast for the Year Ending March 31, 2023 which was announced in“Announcement on Revision to Full-Year Consolidated Earnings Forecast” (Japanese version only) dated November 24, 2022
as we expect increases in raw material costs associated with heating demand in the winter and in repair expenses related tovarious constructions and periodic maintenance during the three months ending March 31, 2023.
We will promptly make an announcement when it becomes necessary to review the forecast.

- 4 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)
FY3/22(As of March 31, 2022)

Third Quarter of FY3/23(As of December 31, 2022)

AssetsCurrent assets
Cash and deposits

9,612,726

7,375,614

Accounts receivable - trade

1,303,500

1,367,283

Lease receivables and investment assets

10,548,425

11,306,545

Operating loans

2,999,771

4,599,412

Raw materials and supplies

15,817

11,569Others103,617

1,773,258

24,583,859

26,433,685

Buildings and structures, net

47,660,935

44,800,131

Machinery, equipment and vehicles, net

5,853,495

5,399,419

260,775

206,154

Land

13,386,664

13,386,664

Construction in progress

1,523,927

1,993,727

Total property, plant and equipment

68,685,798

65,786,097

Software544,968

445,472

Others19,31018,933

Total intangible assets

564,279

464,406

6,555,547

7,124,136

531－

1,240,345

1,081,430

232,963

200,311

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

Tools, furniture and fixtures, net

Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Others614,955

589,321

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

Total investments and other assets

8,634,077

8,984,931

77,884,155

75,235,436

102,468,014

101,669,121

Total non-current assets
Total assets- 5 -(Thousands of yen)
FY3/22(As of March 31, 2022)

Third Quarter of FY3/23(As of December 31, 2022)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,778,043

779,437

Short-term loans payable

5,131,648

5,849,975

Accounts payable

1,705,873

436,510

Income taxes payable

813,465

92,588

Accrued expenses

106,714

77,392

Unearned revenue

1,095,026

1,793,392

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

144,825

96,162

51,88023,550

7,605

218,342

Others216,114557,719

11,051,197

9,925,068

Bonds payable

6,100,000

6,100,000

Long-term loans payable

19,524,613

16,673,239

Long-term guarantee deposited

6,127,603

6,166,020

256,789

184,349－696

31,96837,564

Total current liabilities
Non-current liabilities

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

183,851

72,571

Asset retirement obligations

3,885,762

3,885,762

Total non-current liabilities

36,110,587

33,120,203

47,161,785

43,045,272

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,890

6,982,890

Retained earnings

38,799,813

40,382,914

Treasury stock(1,683,721)(1,630,008)

Total shareholders’ equity

50,925,081

52,561,896

1,714,018

2,074,095

62,452

1,367,565

1,776,471

3,441,660

Subscription rights to shares

76,17850,330Non-controlling interests

2,528,497

2,569,962

Total net assets

55,306,229

58,623,849

102,468,014

101,669,121

Provision for removal cost of property, plant and equipment

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 Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of yen)First nine months of FY3/22(April 1, 2021 – December 31, 2021)

First nine months of FY3/23(April 1, 2022 - December 31, 2022)

Net sales

17,748,157

19,039,511

Cost of sales

13,118,464

14,874,533

Gross profit

4,629,693

4,164,977

Directors’ compensations

199,602

177,699

Salaries and bonuses

473,335

483,207

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for retirement benefits for directors (andother officers)
Transportation and communication expenses

59,33866,88237,44023,550－696

49,33254,657

Depreciation

62,012

76,427

Taxes and dues

127,292

98,104

Others560,234

586,808

1,568,587

1,568,032

3,061,106

2,596,944

Selling, general, and administrative expenses

Total selling, general, and administrative expenses
Operating income
Non-operating income

0045,291

76,668Commission fee

5,911

13,857

Foreign exchange gains

2,048

4,765

Others32,491

105,683

Total non-operating income

85,744200,976

Interest expenses

237,440

216,130

Removal cost of property, plant and equipment

25,09649,305－

107,062

1,123

1,175

Interest income
Dividends income

Non-operating expenses

Provision for removal cost
OthersTotal non-operating expenses
Ordinary income

263,660

373,673

2,883,190

2,424,247

59,58011,721

Extraordinary income
Gain on sale of investment securities－

315,363

Others

4,927

21,299Total extraordinary income

64,507348,384

2,332

1,978

Consumption taxes refund

Extraordinary loss
Loss on retirement of non-current assets
Loss on cancellation of golf club membership

－

3,000

Total extraordinary loss

2,332

4,978

Income before income taxes

2,945,365

2,767,654

919,853

300,680

Income taxes
Income taxes for prior periods
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

- 7 -

－

100,174

919,853

400,855

2,025,512

2,366,799

120,481

79,794

1,905,030

2,287,005

(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of yen)First nine months of FY3/22(April 1, 2021 – December 31, 2021)

First nine months of FY3/23(April 1, 2022 - December 31, 2022)

2,025,512

2,366,799

Valuation difference on available-for-sale securities(266,230)

360,076

Foreign currency translation adjustment

366,108

1,305,112

Total other comprehensive income

99,878

1,665,189

2,125,390

4,031,988

Comprehensive income attributable to owners of parent

2,004,908

3,952,194

Comprehensive income attributable to non-controlling interests

120,481

79,794

ProfitOther comprehensive income

Comprehensive 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 Accounting Policies)(Application of the accounting standard for revenue recognition)
On April 1, 2022, the Company applied the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No.31, June 17, 2021, “Implementation Guidance on Accounting Standard for Fair
Value Measurement”), and the new accounting policies stipulated in the Implementation Guidance on AccountingStandard for Fair Value Measurement, etc. are applied prospectively pursuant to the transitional treatment stipulated by
Paragraph 27-2 of the Implementation Guidance on Accounting Standard for Fair Value Measurement. The impact of
this application on the quarterly consolidated financial statements is insignificant.
(Changes in Accounting Estimates)(Change in useful life)
As it was decided that the disaster risk management measures in the 1-chome District of Tokyo International Airport
will progress based on the Fundamental Plan for National Resilience under the Basic Act for National Resilience
Contributing to Preventing and Mitigating Disasters for Developing Resilience in the Lives of the Citizenry, the useful
lives of the Company’s buildings, machinery and equipment on the area were shortened effective April 1, 2022 tocomplete depreciation of these assets within the estimated remaining useful lives.
As a result of this change, operating income, ordinary income, and income before income taxes for the nine months
ended December 31, 2022 decreased by ¥138 million compared to those that would have been recorded under theprevious method.
(Application of Specific Accounting Treatments in Preparing the Quarterly Consolidated Financial Statements)(Calculation of tax expenses)
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 toincome before income taxes for the consolidated fiscal year including the period ended December 31, 2022.
(Additional Information)(Transfer of non-current assets)
The Company resolved at its Board of Directors meeting held on November 24, 2022 to transfer non-current assets asstated below and concluded a transfer agreement on November 30, 2022.
1. Reason for the transfer
To further improve the Company’s asset efficiency and financial strength
2. Overview of the assets to be transferred
Names and locations of the assets
・THE GENERAL KYOTO Bukkoji Fuyacho
・THE GENERAL KYOTO Takatsuji Fuyacho
・THE GENERAL KYOTO Bukkoji Tominokoji
・THE GENERAL KYOTO Takatsuji Tominokoji
・THE GENERAL KYOTO Yamato-oji(Shimogyo-ku and Higashiyama-ku, Kyoto)

Current status
Rental properties for hotels
Total land area: 2,521m²
Total floor area: 8,030m²*1 Transfer price and carrying amount is not disclosed due to the request of thetransferee.
The carrying amount of the assets to be transferred is less than 30% of theCompany’s consolidated net assets.
*2 A trust is set up first for the assets to be transferred, and then the trust beneficiaryrights will be transferred.

- 9 -3. Overview of the transferee
The information on the transferee is not disclosed due to the request of the transferee. There is no important information
to be noted with regard to capital, personal, transaction and related party relationships between the Company and thetransferee.
4. Transfer timeline
Date of the resolution at the Board of Directors meeting: November 24, 2022
Date of agreement: November 30, 2022
Date of the asset delivery: February 28, 2023 (plan)
5. Impact on earnings
As a result of the transfer of non-current assets, gain on sale of non-current assets of ¥350 million (estimate) will berecorded as extraordinary income for the three months ending March 31, 2023.
The amount of gain on sale of non-current assets is the estimated amount calculated by deducting the carrying
amount and estimated costs associated with the transfer from the transfer price.
(Impacts of COVID-19 on the accounting estimates)
During the nine months ended December 31, 2022, there was no material change in the impact of COVID-19 on theaccounting estimates described in the Annual Securities Report for the year ended March 31, 2022.

- 10 -