May 10, 2024

Financial Results for the Fiscal Year Ended March 31, 2024 [J-GAAP]
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
Scheduled Date of Ordinary General Shareholders’ Meeting:June 27, 2024
Scheduled Date of Dividend Payment Start:
June 28, 2024
Scheduled Date of Filing Annual Securities Report:
June 27, 2024
Preparation of Earnings Presentation Material:
Yes
Holding of Earnings Announcement:
Yes (for analysts)(Figures are rounded off to the nearest million yen.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 - March 31, 2024)(1) Consolidated Business Results(Percentages are changes from the previous year.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Fiscal year ended

Millions of yen% Millions of yen

25,95017,74825,516
17,748March 31, 2024
March 31, 2023
(Note) Comprehensive income:

1.7
7.3

% Millions of yen

27.1
3,175
(23.6)
2,121
Fiscal year ended March 31, 2024: 2,996 million yen
Fiscal year ended March 31, 2023: 2,777 million yen

Basic earnings per
share
Fiscal year ended

March 31, 2024
March 31, 2023

% Millions of yen

3,183
2,503

Diluted earnings
per share

Return on equity

49.6(28.3)

%

2,020
1,564

29.1
90.4

7.9%

157.4%

Ordinary income tototal assets

Operating margin

Yen

Yen

%

%

%

40.27
31.28

40.23
31.21

3.5
2.9

3.0
2.0

12.2
9.8

(Reference) Equity in earnings of affiliates:

Fiscal year ended March 31, 2024:
Fiscal year ended March 31, 2023:－ million yen－ million yen(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

As of March 31, 2024
As of March 31, 2023
(Reference) Equity capital:

Equity ratio

Millions of yen

110,461
102,468
100,403
102,468
As of March 31, 2024:
58,109 million yen

Net assets per share%

Yen

60,76552.6
6
51.4
57,36854.5
6 of March 31, 2023: 54,799
51.4 million yen
As1,157.84
1,055.28
1,095.16
1,055.28(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at year end

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2024
March 31, 2023

784
2,017
4,758

(3,831)(2,704
1,198(2,704

5,101(4,460)(1,907

10,8498,598
6,583

2. Dividends
Dividends per share

Q1
Fiscal year ended

Q2

Yen

March 31, 2023
March 31, 2024
Fiscal year ending March 31,
2025 (Forecasts)

Q3

Yen

Q4

Yen

AnnualTotal
dividends(annual)Payout ratio(consolidated)

Dividends to
net assets(consolidated)

Yen

Yen

Millions of yen

%

%

―
―

7.00
7.00

―
―

7.00
10.00

14.00
17.00

700
853

44.7
42.2

1.3
1.5

―

9.00

―

9.00

18.00

41.1

3. Forecast of Consolidated Earnings for the Fiscal Year Ending March 31, 2025 (April 1, 2024 - March 31, 2025)(Percentages are changes from 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

29,414

13.3
2.1

3,403
2,111

6.9

3,205

0.9

2,193

8.5

43.69

- 1 -

＊ Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting from changes in scope of
consolidation): No(2) 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(3) Number of issued shares (common shares)
1) Number of issued shares
As of March 31, 2024:(including treasury stock)2) Number of treasury stock
As of March 31, 2024:
3) Average number of shares during Fiscal year ended March
the period
31, 2024:

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

52,979,350 shares

2,791,683 shares As of March 31, 2023:

2,941,665 shares

50,158,301 shares Fiscal year ended March
31, 2023:

50,013,504 shares(Reference) Summary of Non-consolidated Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 - March 31, 2024)(Percentages are changes from the previous year.)(1) Non-consolidated Business Results
Operating income
Ordinary income
Net income
Net sales
Fiscal year ended

March 31, 2024
March 31, 2023

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

22,494
1.7
22,102
5.9
20,81
(3.6
20,81
(3.6
Net income
per share

2,343
1,985

18.0
(22.9)

2,527
1,876

34.6
(27.8)

1,662
1,418

17.2
122.6

Fiscal year ended

March 31, 2024
March 31, 2023

Diluted net income
per share

Yen

Yen

33.14
28.35

33.11
28.29

(2) Non-consolidated Financial Position
Total assets
Millions of yen

As of March 31, 2024
As of March 31, 2023
(Reference) Equity capital

Net assets
Millions of yen

Equity ratio

Net assets per share%

97,88951,92753.0
88,60050,56857.0
89,38049,87955.7
As of March 31,
2024: 51,904 million yen 49,879
As of March 31, 2023: 50,51855.7
million yen
89,380Yen

1,034.20
1,009.60
997.58997.58* 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 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 5 “1. Summary of Operating Results, etc., (4) Earnings Forecast for the Fiscal Year Ending March 31, 2025.”- 2 -1. Summary of Operating Results, etc.
(1) Summary of Operating Results for the Fiscal Year Ended March 31, 2024
During the fiscal year ended March 31, 2024, the Japanese economy continued to be on a gradual recovery trend as the
economic activity has been recovering from the COVID-19 crisis and the employment and income environment has been
improving after the legal status of COVID-19 under the law on infectious diseases was downgraded to Class 5 in May 2023.
Meanwhile, we still need to carefully monitor risks that may put downward pressure on the Japanese economy such as
exchange rate fluctuations, surging prices, concerns over the outlook of the Chinese economy, and increasing tensions in the
Middle East situation.
In the aviation industry, supported by strong inbound demand and leisure demand following the lifting of movement
restrictions in Japan, the number of passengers showed favorable growth in both domestic and international flights, and we
expect that strong passenger demand will continue.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of ¥25,950
million (up 1.7% from the previous fiscal year) and operating income of ¥3,183 million (up 27.1%) mainly because there wasa continued recovery trend in water supply and drainage usage despite a decrease in net sales as a consequence of sales ofhotels and an office building for lease in February 2023. Ordinary income was ¥3,175 million (up 49.6%) mainly due torecording of gain on investments in silent partnership, etc. by an aircraft leasing fund and a decrease in provision for removal
cost related to various constructions, and profit attributable to owners of parent was ¥2,020 million (up 29.1%).
Performance by business segment is as follows:(i) Real Estate Business
Real estate business recorded net sales of ¥19,489 million (down 1.2% from the previous fiscal year) mainly due to adecrease in net sales as a consequence of sales of hotels and an office building for lease in February 2023 while net sales
increased due to lease of office buildings acquired as part of our efforts related to non-asset business, one of the priority
measures in the Medium- to Long-Term Management Plan, (we acquired “Hiroshima Motomachi NS Building (Naka-ku,
Hiroshima City)” in March 2023, “Shinjuku Yawaragi Building (Shinjuku-ku, Tokyo)” in June, “Gofukukan (Aoi-ku,
Shizuoka City)” in August and “Nihonbashi Hamacho 2-Chome Building (Chuo-ku, Tokyo)” in October), and variable rentsof hotels and parking lot revenue of HANEDA INNOVATION CITY also increased as economic activities have become
active. Operating income was ¥2,321 million (up 6.8%) due to a decrease in depreciation, etc. related to sold facilities andour efforts to improve profitability in existing facilities.
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport Heating & Cooling Co., Ltd.
recorded net sales of ¥3,461 million (up 1.4% from the previous fiscal year) as sales from cold/heat energy supply increased
year-on-year mainly due to the intense summer heat. Operating income was ¥527 million (up 134.2%) as a decline inelectricity and gas prices from the previous fiscal year’s level resulted in a decrease in raw material costs. From the second
half of the fiscal year ended March 31, 2024, the fee structure has been revised to be linked to raw material costs toaddress possible fluctuations in energy prices in the future.
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥3,000 million (up 26.3% from the previous
fiscal year) and operating income of ¥334 million (up 215.0%) because water supply and drainage usage increased due to arecovery in the number of passengers following the downgrade of COVID-19 to Class 5 and the full opening of Haneda
Airport Garden in January 2023, and the shared telecommunications business also showed steady growth.
(2) Summary of Financial Position as of March 31, 2024
(Assets)
Total assets as of March 31, 2024 amounted to ¥110,461 million, an increase by ¥10,058 million compared to March 31,
2023, mainly due to an increase in real estate for sale as a result of purchase of office buildings in non-asset business, anincrease in cash and deposits due to financing from a financial institution, and an increase in investment securities as aresult of additional investment in an aircraft leasing fund despite a decrease in property, plant and equipment due todepreciation of buildings and asset retirement assets.
(Liabilities)
Total liabilities as of March 31, 2024 amounted to ¥49,695 million, an increase by ¥6,661 million compared to March 31,
2023, mainly due to increases in long-term loans payable related to purchase of real estate for sale and in accounts payable
related to renovation work, etc.
(Net assets)
Total net assets as of March 31, 2024 increased by ¥3,396 million compared to March 31, 2023 to ¥60,765 million mainly
due to an increase in retained earnings.
As a result, equity ratio as of March 31, 2024 decreased by 1.9 points to 52.6% compared to March 31, 2023.

- 3 -(3) Summary of Cash Flows for the Fiscal Year Ended March 31, 2024
Cash and cash equivalents (“cash”) as of March 31, 2024 amounted to ¥10,849 million, an increase of ¥2,250 million fromMarch 31, 2023.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥784 million (previous fiscal year: ¥2,017 million provided) mainly
attributable to recording of income before income taxes, noncash items such as depreciation, and a decrease in operatingloans despite an increase in inventory due to purchase of real estate for sale.
(Cash flows from investing activities)
Net cash used in investing activities was ¥3,831 million (previous fiscal year: ¥1,198 million provided) mainly attributableto purchase of non-current assets and purchase of investment securities in relation to additional investment in an aircraft
leasing fund.
(Cash flows from financing activities)
Net cash provided by financing activities was ¥5,101 million (previous fiscal year: ¥4,460 million used) mainly attributableto proceeds from long-term loans payable associated with purchase of real estate for sale despite payments of long-termloans payable and payment of cash dividends.
(Reference) Cash Flow Indicators
FY2022/3

FY2023/3

FY2024/3

Equity ratio (%)

51.4

54.5

52.6

Equity ratio at market value (%)

26.4

27.3

27.5

Debt repayment period (years)

3.6

13.5

40.9

Interest coverage ratio (times)

26.8

6.9

2.6

Equity ratio: Equity capital / Total assets
Equity ratio at market value: Market capitalization / Total assets
Debt repayment period: Interest-bearing debt / Operating cash flows
Interest coverage ratio: Operating cash flows / Interest expense(Notes) 1. All indicators are calculated using financial figures on a consolidated basis.
2. Market capitalization is calculated based on the number of issued shares excluding treasury stock.
3. Interest-bearing debt includes all debt recorded on the consolidated balance sheets on which interest ispaid.
4. Operating cash flows and interest expense are based on “Cash flows from operating activities” and“Interest paid” presented on the consolidated statement of cash flows.

- 4 -(4) Earnings Forecast for the Fiscal Year Ending March 31, 2025
Under the business portfolio strategy set out in the Medium- to Long-Term Management Plan (FY2022 – FY2028), theGroup has been strengthening airport-related business and exploring new business opportunities to develop a profit
foundation toward further growth and create value within and outside airports with an aim to achieve sustainable growth.
Accordingly, effective April 1, 2024, we will change our segments as follows from the perspective of appropriately
managing and evaluating the progress of the Medium- to Long-Term Management Plan.
Old segment
Real Estate Business

New segment
Airport Real EstateBusiness

Main business
Real estate leasing, etc. within/outside airports
Non-asset business
Overseas business

Non-Airport Real Estate Real estate leasing, etc. outside
Business
airports
Non-asset business

Area Heating & Cooling Supply of area heating andBusinesscooling service
Water Supply &Drainage Service andOther Business

Main business
Real estate leasing, etc. within
airports

Operation of water supply anddrainage service; Sharedtelecommunications; Solar
power generation

Airport Infrastructure
Business

Supply of area heating andcooling service; Operation ofwater supply and drainage
service; Sharedtelecommunications

Other Business

Overseas business; Solar power
generation

In the Airport Real Estate Business, we will strive to strengthen stable business foundation through operation of a fresh
product center in the Cargo Area and review of the lease terms of existing property. In the Non-Airport Real EstateBusiness, in efforts to promote non-asset business, we will focus mainly on purchase of new property (real estate for sale),value enhancement work and rent revision to increase property value and possibility sell real estate for sale. In the Airport
Infrastructure Business, on the premise of stable supply of infrastructure services, we expect an increase in depreciation
and repair cost in relation to capital investment in the area heating & cooling business as well as an increase in maintenancecost in the water supply and drainage business while we expect water supply and drainage usage to remain at the preCOVID-19 level.
We also expect an increase in return on investment in non-operating income due to full-year operation of the aircraft
leasing fund. Accordingly, the forecast for the fiscal year ending March 31, 2025 is net sales of ¥29,414 million (up 13.3%
from the previous fiscal year), operating income of ¥3,403 million (up 6.9%), ordinary income of ¥3,205 million (up 0.9%),
and profit attributable to owners of parent of ¥2,193 million (up 8.5%).
(5) Basic Policy Regarding Distribution of Earnings and Dividends for the Fiscal Year Ended March 31, 2024 and the
Fiscal Year Ending March 31, 2025
While we focus on maintenance of stable management base and enhancement of financial strength, we also consider
profit return to shareholders is important and strive to stably return profits to shareholders with the dividend payout ratioof over 40% in consideration of current performance and future outlook.
Based on the above policy and comprehensive consideration of our financial condition, etc., we plan to pay annual
dividend of ¥17 per share (interim dividend of ¥7 and year-end dividend of ¥10) for the fiscal year ended March 31, 2024.
For the fiscal year ending March 31, 2025, we plan to pay annual dividend of ¥18 (including interim dividend of ¥9).

2. Basic Policy Regarding Selection of Accounting Standards
The Group adopts Japanese Accounting Standards to ensure comparability with domestic sector peers.

- 5 -3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet(Thousands of yen)
FY3/23(As of March 31, 2023)

FY3/24(As of March 31, 2024)

AssetsCurrent assets
Cash and deposits

8,598,633

10,849,304

Accounts receivable - trade

1,343,102

1,410,637

Lease receivables and investment assets

11,019,327

10,951,505

Operating loans

4,067,980

3,720,272

－

2,723

Merchandise

2,988,214

10,831,897

Raw materials and supplies

12,36013,719Others851,617712,565

28,881,236

38,492,624

168,709,131

172,561,103(126,575,490)(129,967,209)

Buildings and structures, net

42,133,640

42,593,894

Machinery, equipment and vehicles

20,346,113

20,619,067(15,136,070)(15,612,698)

5,210,042

5,006,369

602,577

653,653

Accumulated depreciation and impairment loss

(480,091)(514,055)

Tools, furniture and fixtures, net

122,486

139,598

Land

10,805,148

10,803,731

Construction in progress

2,113,525

562,390

Total property, plant and equipment

60,384,843

59,105,983

Software413,782352,344

Others35,32934,988

Total intangible assets

449,111387,332

Investment securities

9,256,745

11,457,003

Deferred tax assets

652,032

174,873

Net defined benefit asset

198,748

264,687

Others590,759

589,487

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

Total investments and other assets

10,688,019

12,475,784

71,521,975

71,969,101

100,403,211

110,461,725

Real estate for sale

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss

Accumulated depreciation and impairment loss

Machinery, equipment and vehicles, net
Tools, furniture and fixtures

Intangible assets

Investments and other assets

Total non-current assets
Total assets- 6 -(Thousands of yen)
FY3/23(As of March 31, 2023)

FY3/24(As of March 31, 2024)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,691,141

1,968,324

Short-term loans payable

5,066,580

3,313,450

Accounts payable

1,230,829

2,202,160

Income taxes payable

79,273

743,214

Accrued expenses

94,60897,543

Unearned revenue

1,022,220

1,027,169

152,002144,273

31,40028,850179,322

111,862

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

110,000

318,320

308,045

9,865,698

10,054,894

Bonds payable

6,100,000

6,100,000

Long-term loans payable

16,134,790

22,730,159

Long-term guarantee deposited

6,314,218

6,405,904

179,994

121,010

1,044

6,786

41,36351,626

Asset retirement obligations
OthersTotal current liabilities
Non-current liabilities

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

115,447－

Asset retirement obligations

4,281,762

4,225,522

Total non-current liabilities

33,168,620

39,641,008

43,034,318

49,695,902

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,890

6,982,890

Retained earnings

39,660,392

42,025,075

Treasury stock(1,630,050)(1,546,962)

Total shareholders’ equity

51,839,332

54,287,102

2,063,074

2,413,935

896,997

1,408,697

2,960,071

3,822,632

Subscription rights to shares

50,33022,923

Non-controlling interests

2,519,158

2,633,164

Total net assets

57,368,892

60,765,822

100,403,211

110,461,725

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- 7 -(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement 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
Gain on investments in silent partnership, etc.
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
Gain on sale of investment securities
Gain on sale of non-current assets
Consumption taxes refund, etc.
OthersTotal extraordinary income
Extraordinary loss
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on valuation of shares of subsidiaries
Loss on cancellation of golf club membership
Impairment loss
Total extraordinary loss
Income before income taxes
Income taxes
Income taxes – refund

FY3/23(April 1, 2022 - March 31, 2023)
25,516,472
20,903,046
4,613,426

FY3/24(April 1, 2023 - March 31, 2024)
25,950,897
20,672,291
5,278,605

233,913609,549
101,139

205,679
714,763
104,766

31,40025,444

1,044

4,092

71,116
102,096
125,087
834,368
2,109,714
2,503,712

78,276
112,086
173,938
676,339
2,095,386
3,183,219

1
76,66840,251－
58,189175,111

3
83,51678,281
170,092
101,578
433,473287,600
163
153,168
110,918
5,389
557,239
2,121,583

284,542
1,536
135,458－
19,306440,844
3,175,847

11,721
480,066
315,363
25,011
832,162

－
－
－
－
－

－
21,497
14,7603,000
735,551
774,808
2,178,937
63,215(19,004)
100,174
441,079
585,464
1,593,473
28,9891,564,483

1,140
8,444
－
3,000
－
12,585
3,163,262
700,805－－
328,446
1,029,252
2,134,009
114,006
2,020,003

Income taxes for prior periods
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 8 -(Consolidated Statement of Income)
FY3/23(April 1, 2022 - March 31, 2023)
1,593,473(Thousands of yen)
FY3/24(April 1, 2023 - March 31, 2024)
2,134,009

Valuation difference on available-for-sale securities

349,055

350,861

Foreign currency translation adjustment

834,544

511,699

1,183,600

862,561

2,777,073

2,996,571

2,748,083

2,882,564

28,989114,006

ProfitOther comprehensive income

Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests- 9 -(3) Consolidated Statement of Changes in Net Assets
For the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Thousands of yen)

Shareholders’ equity

Balance at the beginning of current period

Capital stock

Capital surplus

6,826,100

6,982,890

Retainedearnings

Treasury stock

Total
shareholder'sequity(1,683,721)

50,925,081

38,799,813

Changes of items during the period
Dividends from surplus(699,849)(699,849)

Profit attributable to owners of parent

1,564,483

1,564,483

Purchase of treasury stock
Disposal of treasury stock(4,054)

(114)

(114)

53,78549,731－

Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period－－

860,579

53,671

6,826,100

6,982,890

39,660,392(1,630,050)

914,250－
51,839,332

Accumulated othercomprehensive income
Valuationdifference on
available-forsale securities
Balance at the beginning of current period

Subscription
Totalrightsaccumulated
to shares
othercomprehensive
income62,452
1,776,471
76,178Foreigncurrencytranslation
adjustment

1,714,018

Noncontrollinginterests

Total
net assets

2,528,497

55,306,229

Changes of items during the period
Dividends from surplus－(699,849)

Profit attributable to owners of parent－

1,564,483

Purchase of treasury stock

－

(114)

Disposal of treasury stock
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

49,731－
349,055

834,544

1,183,600(25,848)

349,055

834,544

1,183,600(25,848)(9,339)2,062,663

2,063,074

896,9972,960,071

50,3302,519,158

57,368,892- 10 -(9,339)1,148,412

For the Fiscal Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)(Thousands of yen)

Shareholders’ equity

Balance at the beginning of current period

Capital stock

Capital surplus

6,826,100

6,982,890

Retainedearnings

Treasury stock

Total
shareholder'sequity(1,630,050)

51,839,332

39,660,392

Changes of items during the period
Dividends from surplus(701,577)

Profit attributable to owners of parent

2,020,003(701,577)
2,020,003

Purchase of treasury stock(147)

Disposal of treasury stock(8,572)

Changes in scope of consolidation

83,235

1,054,829

Balance at the end of current period

74,662
1,054,829－

Net changes of items other than shareholders’ equity
Total changes of items during the period

(147)

－

－

2,364,682

83,087

6,826,100

6,982,890

42,025,075(1,546,962)

2,447,770－
54,287,102

Accumulated othercomprehensive income
Valuationdifference on
available-forsale securities
Balance at the beginning of current period

2,063,074

Subscription
Totalrightsaccumulated
tosharesothercomprehensive
income896,9972,960,071
50,330Foreigncurrencytranslation
adjustment

Noncontrollinginterests

Total
net assets

2,519,158

57,368,892

Changes of items during the period
Dividends from surplus－(701,577)

Profit attributable to owners of parent－

2,020,003

Purchase of treasury stock

－

(147)

Disposal of treasury stock－

74,662

Changes in scope of consolidation
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

1,054,829
350,861

511,699862,561(27,407)

114,006

949,160

350,861

511,699862,561(27,407)

114,006

3,396,930

2,413,935

1,408,697

3,822,632

22,923

2,633,164

60,765,822- 11 -

(4) Consolidated Statement of Cash Flows(Thousands of yen)
FY3/23(April 1, 2022 - March 31, 2023)

FY3/24(April 1, 2023 - March 31, 2024)

2,178,937

3,163,262

4,822,504

4,819,377

Impairment loss
Increase (decrease) in provision for removal cost of
property, plant and equipment
Decrease (increase) in net defined benefit asset
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for bonuses

735,551－

103,313(182,906)

34,214(65,938)

1,044

4,092

7,177

(11,309)

Increase (decrease) in provision for directors’ bonuses(20,480)(6,950)Interest and dividend income(76,670)(83,520)

Loss (gain) on investments in silent partnership, etc.

(170,092)

Share-based compensation expenses－
55,320Interest expenses

287,600

284,542

Loss on valuation of shares of subsidiaries

14,760－Loss (gain) on sale of investment securities(11,721)

Loss (gain) on sales of non-current assets(480,066)－
1,140

Loss on cancellation of golf club membership

3,000

3,000

Loss on retirement of non-current assets

21,497

8,444

Decrease (increase) in notes and accounts receivable(39,602)(66,700)

Decrease (increase) in inventories
Net decrease (increase) in lease receivables andinvestment assets
Decrease (increase) in operating loans receivable(2,990,731)(7,958,866)

95,788468,202(601,525)

622,573

Increase (decrease) in notes and accounts payable(86,959)

295,316

Increase (decrease) in unearned revenue(75,697)

3,982

Increase (decrease) in accrued expenses(9,828)

6,565

Increase (decrease) in accrued consumption taxes

180,091(425,785)

Decrease (increase) in other assets(254,491)(355,718)

Increase (decrease) in other liabilities(75,870)(52,287)

Others(253,060)

276,923

Subtotal

3,564,096

619,048

Interest and dividends received
Interest paid

76,670(291,753)

83,520(294,955)(1,331,719)(107,407)

Cash flows from operating activities
Income before income taxes
Depreciation

Income taxes paid
Income taxes refunded
Net cash provided by operating activities
Cash flows from investing activities
Purchase of non-current assets

41,698－484,374

2,017,293

784,580(2,180,999)(2,169,743)

Proceeds from sale of non-current assets

5,517,177

276

Purchase of investment securities(2,204,040)(1,818,823)

27,629－Proceeds from sale of investment securities
Proceeds from distributions from investment
partnerships
Payments of leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee
deposits
Proceeds from collection of long-term loans receivable

20,903

143,510(11,668)(12,361)

－

1,000

400

131

Others

29,00025,0001,198,401(3,831,011)

Net cash provided by (used in) investing activities- 12 -

(Thousands of yen)
FY3/23(April 1, 2022 - March 31, 2023)

FY3/24(April 1, 2023 - March 31, 2024)

Cash flows from financing activities
Increase in short-term loans payable

2,200,000

9,000,000

Decrease in short-term loans payable(2,200,000)(9,078,540)

Proceeds from long-term loans payable

509,028

9,900,000

Payments of long-term loans payable(4,367,244)(4,110,178)

Proceeds from guarantee deposits received

565,221249,699

Repayments of guarantee deposits received(378,606)(158,014)

53

81

Proceeds from sales of treasury stock
Purchase of treasury stock

(114)

(147)

Payment of cash dividends(700,181)(701,803)

Cash dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change
in scope of consolidation(38,329)－(50,000)－

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(4,460,173)

5,101,096

230,384

82,884

Net increase (decrease) in cash and cash equivalents(1,014,093)

2,137,550

Cash and cash equivalents at beginning of period

9,612,726

8,598,633

Increase in cash and cash equivalents due to newconsolidation－

113,120

8,598,633

10,849,304

Cash and cash equivalents at end of period- 13 -

(Segment Information, etc.)[Segment information]
1. Overview of reportable segments
The reportable segments of the Company are units for which separate financial information is available and whose operating
results are regularly reviewed by the Board of Directors in order to decide how to allocate management resources and evaluate
their performances.
The Company’s head office develops comprehensive business strategies of each segment and pursues business activities.
The Company is, therefore, composed of three business segments with different services determined by the head office asfollows: “Real Estate Business,” “Area Heating & Cooling Business”, and “Water Supply & Drainage Service and Other
Business.”“Real Estate Business” leases office buildings, etc., “Area Heating & Cooling Business” supplies cooling and heating
services, and “Water Supply & Drainage Service and Other Business” operate and manage waterworks, drainage, and sharedtelecommunications network, and solar power generation business.
2. Method of calculations of sales, profit (loss), assets, liabilities, and other items by reportable segments
Accounting treatments applied to reportable segments are, in general, consistent with those described in “Significant Basis for
Preparation of Consolidated Financial Statements.”
Inventories are valued at amount before write-off of book value to reflect decline in profitability.
Segment income is based on operating income.
Intersegment sales and transfers are based on prevailing market price.
3. Sales, profit (loss), assets, liabilities, and other items by reportable segments
Fiscal Year Ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Thousands of yen)
Reportable Segments
Area Heating &Real Estate
Cooling
Business
Business

Water Supply &Drainage
Service andOther Business

Total

Carrying Amounton Consolidated
Financial
Statements

Adjustments(Note)Net sales
Net sales to outside
customers
Intersegment sales/transfers

19,730,747

3,412,048

2,373,676

25,516,472－

25,516,472

261,121874,572

239,834

1,375,528(1,375,528)－

19,991,868

4,286,621

2,613,510

26,892,000(1,375,528)

25,516,472

Segment income

2,172,494

225,002106,215

2,503,712－

2,503,712

Segment assets

76,148,165

8,344,325

1,098,774

85,591,265

14,811,945

100,403,211

Segment liabilities

38,756,103

2,042,272

222,534

41,020,910

2,013,408

43,034,318

Depreciation andamortization

4,041,255

571,152

107,999

4,720,407

102,096

4,822,504

Increase in property, plantand equipment andintangible assets

1,338,022

578,480

17,5901,934,093

7,413

1,941,506

Total

Other items(Notes) Adjustments represent elimination of intersegment transactions.

- 14 -

Fiscal Year Ended March 31, 2024 (April 1, 2023 - March 31, 2024)(Thousands of yen)
Reportable Segments
Area Heating &Real Estate
Cooling
Business
Business

Water Supply &Drainage
Service andOther Business

Total

Carrying Amounton Consolidated
Financial
Statements

Adjustments(Note)Net sales
Net sales to outside
customers

19,489,227

3,461,373

3,000,296

25,950,897－

25,950,897

Intersegment sales/transfers

261,741

907,835

281,671

1,451,249(1,451,249)－

19,750,968

4,369,209

3,281,968

27,402,146(1,451,249)

25,950,897

Segment income

2,321,618

527,021334,579

3,183,219－

3,183,219

Segment assets

82,392,344

9,089,396

1,195,049

92,676,790

17,784,934

110,461,725

Segment liabilities

44,729,886

2,497,940

408,863

47,636,690

2,059,211

49,695,902

Depreciation andamortization

3,962,089

639,318

105,883

4,707,291

112,086

4,819,377

Increase in property, plantand equipment andintangible assets

2,684,164797,659

98,9393,580,762

67,742

3,648,505

Total

Other items(Notes) Adjustments represent elimination of intersegment transactions.

- 15 -