July 28, 2016

Financial Results for the First Quarter of the Year Ending March 31, 2017 [J-GAAP](Consolidated)
Company name:AIRPORT FACILITIES CO., LTD. (AFC)Stock exchange listed on:
Tokyo Stock Exchange (First Section)
Company code:
8864
URL: http://www.afc.jp
Representative: Hiroshi Maruyama, President and CEO
Inquiries: Takahiro Hama, General Manager of Accounting Dept. TEL: +81-3-3747-0251
The date of filing the quarterly securities report:
August 3, 2016
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 2017 (April 1, 2016 - June 30, 2016)(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 three months ended

Millions of yen

June 30, 2016
June 30, 2015

% Millions of yen

5,216
5,032

3.6
(3.0)

(Note) Comprehensive income:% Millions of yen

1,011
810

24.7
(16.1)First three months ended June 30, 2016:
First three months ended June 30, 2015:

Basic earnings per
shareFirst three months ended

June 30, 2016
June 30, 2015

% Millions of yen

1,026
814

25.9
(33.7)

267 million yen
536 million yen

%

592
464

27.6
(36.0)((50.1%))((45.6%))

Diluted earnings
per share

Yen

Yen

11.47
8.98

11.46
－

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of June 30, 2016
As of March 31, 2016

86,75985,21451,56351,64457.4
58.5

963.46965.69(Reference) Equity capital:

As of June 30, 2016: 49,772 million yen

As of March 31, 2016: 49,888 million yen

2. Dividends
Dividends per share

Q1

Q2

Q3

Q4

Annual

Yen

Yen

Yen

Yen

Yen

－
－

6.00

－

6.00

12.00

6.00

－

6.00

12.00

FY ended March 31, 2016
FY ending March 31, 2017
FY ending March 31, 2017(Forecasts)(Note) Changes in the latest forecasts released: No

3. Forecast of Consolidated Earnings for the Year Ending March 2017 (April 1, 2016 - March 31, 2017)(Percentages are changes from the same period of the previous year.)Net salesFirst half
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

10,85021,630

5.0
4.5

1,680
3,490

7.2
18.5

1,610
3,290

4.7
3.7

1,040
2,130

17.5
10.1

20.13
41.23

(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. Summary Information (Other), (2) Application of Specific Accounting Treatments in Preparing theQuarterly Consolidated Financial Statements” on page 4.

(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
As of June 30, 2016:
treasury stock)2) Number of treasury stock
As of June 30, 2016:
3) Average number of shares during
the period

First three months ended
June 30, 2016:

54,903,750 shares As of March 31, 2016:

54,903,750 shares

3,242,974 shares As of March 31, 2016:

3,242,974 shares

51,660,776 shares First three months ended
June 30, 2015:

51,661,147 shares* Implementation status of quarterly review procedures
The quarterly review procedures stipulated in the Financial Instruments and Exchange Act are not applicable to this Financial Results report,
and the procedures have not been completed when this Financial Results report was disclosed.

* Explanation of the proper use of earnings forecasts and other special notes(Remarks on forward-looking statements)
The statements about future described on this report such as earnings forecasts have been made based on information currently available andcertain assumptions considered reasonable, and it is not intended to assure that we will achieve such results. Actual earnings may differ
significantly from the above forecasts for various reasons. For the assumptions for earnings forecasts and cautions regarding the use of theearnings forecasts, please refer to “1. Qualitative Information on Consolidated Financial Results for the Quarter Ended June 30, 2016 (3)Qualitative Information on Consolidated Earnings Forecast” on page 4.

- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended June 30, 2016
(1) Explanation about Business Results
During the quarter ended June 30, 2016, the Japanese economy showed a moderate recovery trend supported by
improvement in income and employment environment as a result of the continued monetary easing policy by the Bank ofJapan for the last few years and a negative interest rates policy introduced in late January. However, such recovery may
come to a temporary halt due to factors including the economic downturn in China, Europe and resource rich countries, thestagnant economy in Kyushu area because of the earthquake in Kumamoto and Oita in Japan in mid-April, as well as
further appreciation of the yen and decline in stock prices as a consequence of the repeated terrorist attacks in multiple
locations in the world and the Brexit vote in mid-June.
In the aviation industry, while the demand for international flight continues to grow due to an increase in foreign
passengers visiting Japan, domestic flights slightly decreased and fuel costs also seems to have bottomed out.
The current market environment has been tough for both international and domestic flights due to factors including
business expansion by LCCs and a competition with Shinkansen. In order to survive such tough environment, airline
companies are working on expansion of route network as well as further cost reduction by measures such as increasing
advanced flight equipment with high fuel consumption efficiency and consolidating facilities.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of ¥5,216
million (up 3.6% from the same period of the previous year) partly due to an increase in occupancy ratio in some leasing
property, operating income of ¥1,011 million (up 24.7%), ordinary income of ¥1,026 million (up 25.9%), and profit
attributable to owners of parent of ¥592 million (up 27.6%).
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥3,898 million (up 4.2% from the same period of the previous year), due
to occupancy by a new tenant of a pilot training center at Tokyo International Airport, an improved occupancy ratioof Rinku International Logistics Center, and increased sales of a consolidated subsidiary in Singapore. Operating
income was ¥678 million (up 31.1 %).
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business recorded net sales of ¥747 million (up 0.1% from the same period of the previousyear) due to a steady growth of sales from cooling service in the reclaimed land area offshore Tokyo International
Airport by Tokyo Airport Heating & Cooling Co., Ltd., a consolidated subsidiary. Operating income was ¥299
million (up 16.8%) due to decreased rates of electricity and gas.
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥570 million (4.5% from the same
period of the previous year ) as a result of a solid growth in sales of water supply and drainage usage due to a
growing number of passengers at Tokyo International Airport and year-round operation of solar power generation
business in Mizunami, Gifu. However, operating income was ¥32 million (down 10.1%) due to an increase indepreciation expense.

(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of June 30, 2016 amounted to ¥86,759 million, an increase by ¥1,544 million compared to March 31, 2016,
due to an increase in loans payable of a subsidiary in Singapore, etc.
(Liabilities)
Liabilities as of June 30, 2016 amounted to ¥35,195 million, an increase by ¥1,625 million from March 31, 2016, due torecording of accrued expenses for national property usage fee (land) by estimate as the invoice was not received as of June30, 2016, in addition to an increase in loans payable of a subsidiary in Singapore.

- 3 -(Net assets)
Net assets as of June 30, 2016 decreased by ¥80 million compared to March 31, 2016 to ¥51,563 million mainly due to adecrease in valuation difference on available-for-sale securities.
As a result, equity ratio as of June 30, 2016 decreased by 1.2 points to 57.4% compared to March 31, 2016.
(3) Qualitative Information on Consolidated Earnings Forecast
There is no change as to Consolidated Earnings Forecast for the Year Ending March 2017 which was announced in the
Financial Results for the Year Ended March 31, 2016 [J-GAAP] dated May 12, 2016.

2. Summary Information (Other)(1) Changes in Material Subsidiaries during the Period under Review
Not applicable.
(2) Application of Specific Accounting Treatments in Preparing the Quarterly Consolidated Financial Statements
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, 2016.
(3) Changes in Accounting Policies and Estimates, and Restatements
Not applicable.

3. Material Events concerning Going Concern
Not applicable.

- 4 -4. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY3/16(As of March 31, 2016)

First quarter of FY3/17(As of June 30, 2016)

AssetsCurrent assets
Cash and deposits

4,974,638

8,294,815

Notes and accounts receivable-trade

1,006,211

1,320,299

Securities

1,000,000－

Lease investment assets

3,874,634

3,741,030

Operating loans

5,392,481

4,908,625

Raw materials and supplies

13,083

13,504

Deferred tax assets

165,175

165,175

Others141,027

114,310

16,567,252

18,557,762

Buildings and structures, net

45,110,286

44,416,764

Machinery, equipment and vehicles, net

5,053,144

5,115,530

38,91037,278Land

9,592,528

9,592,528

Construction in progress

1,562,242

2,116,978Total property, plant and equipment

61,357,112

61,279,081

25,06425,3155,976,316

5,455,439

3,429

3,278

Deferred tax assets

468,895

635,135

Net defined benefit asset

198,997

189,964

Others652,251

648,056

Allowance for doubtful accounts(34,567)(34,567)

Total investments and other assets

7,265,322

6,897,307

68,647,500

68,201,704

85,214,753

86,759,466

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

Total non-current assets
Total assets- 5 -(Thousands of yen)
FY3/16(As of March 31, 2016)

First quarter of FY3/17(As of June 30, 2016)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,114,793

637,030

Short-term loans payable

4,379,428

4,351,959

Accounts payable

519,280

453,836

Income taxes payable

488,020

329,038

Accrued expenses

269,075

1,121,029

Unearned revenue

948,317

1,067,227

Provision for bonuses

131,496

67,314

Provision for directors’ bonuses

25,88012,148Provision for removal cost of property, plant and equipment

223,321

128,486

Others363,151555,427

8,462,765

8,723,497

Long-term loans payable

19,621,404

20,990,577

Long-term guarantee deposited

5,083,361

5,079,747

Long-term accounts payable-other394,749

395,537

Net defined benefit liability

5,370

6,129

Provision for directors’ retirement benefits

2,436

－

25,107,322

26,471,991

33,570,088

35,195,489

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,920

6,982,920

Retained earnings

35,418,621

35,701,086

Treasury stock(1,562,688)(1,562,688)

Total shareholders’ equity

47,664,953

47,947,418

Valuation difference on available-for-sale securities

2,234,058

1,879,422

Foreign currency translation adjustment(10,292)(53,973)

Total accumulated other comprehensive income

2,223,766

1,825,448

29,35929,359Non-controlling interests

1,726,586

1,761,750

Total net assets

51,644,665

51,563,977

85,214,753

86,759,466

Total current liabilities
Non-current liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Subscription rights to shares

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 three months of FY3/16(April 1, 2015 – June 30, 2015)

First three months of FY3/17(April 1, 2016 – June 30, 2016)

Net sales

5,032,958

5,216,170

Cost of sales

3,804,331

3,779,624

Gross profit

1,228,626

1,436,545

Directors’ compensations

61,632

68,877

Salaries and bonuses

108,647

106,202

Provision for bonuses

41,99443,044

Provision for directors’ bonuses

12,94012,148Transportation and communication expenses

19,19528,070

Taxes and dues

27,54827,305

Selling, general, and administrative expenses

7,984

1,738

Others138,106

138,052

Total selling, general, and administrative expenses

418,048

425,439

810,578

1,011,106

Dividends income

72,940113,134

Commission fee

18,26925,203

Depreciation

Operating income
Non-operating income

Others28,17236,899Total non-operating income

119,382

175,237

Interest expenses

75,36084,322

Removal cost of property, plant and equipment

9,992

5,070

Foreign exchange losses

2,188

70,484

Depreciation

27,370

－

174

195

115,085

160,072

814,875

1,026,272

Gain on sales of non-current assets

6,707

Total extraordinary income

6,707

－
－

Total extraordinary loss

7,204
7,204

931
931

Income before income taxes

814,378

1,025,341

Income taxes

292,631359,417

Profit521,746

665,923

Profit attributable to non-controlling interests

57,57373,493

Profit attributable to owners of parent

464,172

592,429

Non-operating expenses

OthersTotal non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss
Loss on retirement of non-current assets- 7 -(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of yen)First three months of FY3/16(April 1, 2015 – June 30, 2015)

First three months of FY3/17(April 1, 2016 – June 30, 2016)

521,746

665,923

Valuation difference on available-for-sale securities

53,401(354,636)

Foreign currency translation adjustment(39,124)(43,681)

Total other comprehensive income

14,276(398,317)

536,023

267,605

Comprehensive income attributable to owners of parent

478,449

194,112Comprehensive income attributable to non-controlling interests

57,57373,493

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.

- 9 -