January 25, 2018

Financial Results for the Third Quarter of the Year Ending March 31, 2018 [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:
February 8, 2018
The date of the dividend payment start:－
No
Preparation of quarterly earnings presentation material:
No
Holding of quarterly earnings announcement:(Figures are rounded off to the nearest million yen.)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 2018 (April 1, 2017 - December 31, 2017)(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, 2017
December 31, 2016

16,992
16,177% Millions of yen

5.0
5.5

(Note) Comprehensive income:% Millions of yen

3,215
3,113

3.3
29.3

% Millions of yen

2,967
2,967

(0.0)
29.3

First nine months ended December 31, 2017:
First nine months ended December 31, 2016:

Basic earnings per
share

%

1,767
1,854

2,872 million yen
1,619 million yen

(4.7)
35.1
(77.4%)(10.8%)

Diluted earnings
per shareFirst nine months ended

Yen

Yen

December 31, 2017
December 31, 2016

34.21
35.89

34.11
35.82

(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

87,231
87,58055,55653,415

61.2
58.7

1,032.76
995.53As of December 31, 2017
As of March 31, 2017
(Reference) Equity capital:

Net assets

As of December 31, 2017: 53,372 million yen

As of March 31, 2017: 51,437 million yen

2. Dividends
Dividends per share

Q1

Q2

Q3

Q4

Annual

Yen

Yen

Yen

Yen

Yen

－
－

6.00
7.00

－
－

7.00

13.00

7.00

14.00

FY ended March 31, 2017
FY ending March 31, 2018
FY ending March 31, 2018 (Forecasts)(Note) Changes in the latest forecasts released: No

3. Forecast of Consolidated Earnings for the Year Ending March 2018 (April 1, 2017 - March 31, 2018)(Percentages are changes from the same period of the previous year.)

Operating income

Net sales
Full fiscal year

Profit attributable toowners of parent

Ordinary income

Basic earnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

22,180

2.3

3,860

0.9

3,640

4.2

2,310

7.3

44.71

(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. : 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 December 31, 2017:
treasury stock)2) Number of treasury stock
As of December 31, 2017:
3) Average number of shares during
the period

First nine months ended
December 31, 2017:

54,903,750 shares As of March 31, 2017:

54,903,750 shares

3,223,911 shares As of March 31, 2017:

3,235,711 sharesFirst nine months ended
December 31, 2016:

51,663,979 shares

51,675,978 shares* The quarterly review procedures are not applicable to this Financial Results report.
* 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 December 31, 2017 (3)Qualitative Information on Consolidated Earnings Forecast” on page 4.

- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended December 31, 2017
(1) Explanation about Business Results
During the nine months ended December 31, 2017, the Japanese economy showed a moderate recovery trend overall due tostrong export supported by the expansion of global economy, gradual increase in domestic capital investments andproduction while the Bank of Japan continued its monetary easing policy. Many companies revised upward their full-year
earnings forecast on the back of their favorable earnings for the period ended September 30, 2017. The Nikkei Stock
Average also remains on an upward trend after recovering to ¥22,000 level in October 2017. However, there are concerns
over the impact on the Japanese economy of increasing global uncertainties including the policy management in the U.S.
and fluctuations in interest rates and exchange rates as well as repeated terrorist attacks and Middle East turmoil and risingtensions over the situation in North Korea.
The aviation industry continued to see strong inbound demand under such environment, and the results during the New
Year holidays also showed solid growth for both international and domestic flights. On the other hand, with continuing
fierce competition with LCCs and Shinkansen and concerns over the increase in fuel prices, airline companies are working
on strict cost management while implementing advanced equipment, expanding network and enhancing in-flight services.
Under such economic conditions, the Group (the Company and its consolidate subsidiaries) recorded net sales of ¥16,992
million (up 5.0% from the same period of the previous year) as a result of solid growth in sales at Tokyo International
Airport, operating income of ¥3,215 million (up 3.3%), ordinary income of ¥2,967 million (down 0.0%) mainly due toforeign exchange losses in overseas, and profit attributable to owners of parent of ¥1,767 million (down 4.7%).
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥12,645 million (up 5.1% from the same period of the previous year), due
to an improved occupancy ratio of tenants at Tokyo International Airport, full-year operation of Haneda Asahi Cho
Hotel, and increased sales of a consolidated subsidiary in Singapore. Operating income was ¥2,188 million (up6.0%).
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business recorded net sales of ¥2,390 million (down 0.1% from the same period of theprevious year) as the unseasonable weather affected the sales from area heating & cooling service in the reclaimed
land area offshore Tokyo International Airport by Tokyo Airport Heating & Cooling Co., Ltd., a consolidated
subsidiary. Operating income was ¥889 million (down 3.0%) due to increased rates of electricity and gas andincreased repair expenses despite a decrease in depreciation.
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥1,956 million (up 11.3% 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 the commencement of water supply and drainage
management operations in New Chitose Airport. Operating income was ¥136 million (up 4.7%).
(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of December 31, 2017 amounted to ¥87,231 million, a decrease by ¥348 million compared to March 31,
2017, mainly due to an increase in depreciation of buildings and others despite an increase in investment securities as aresult of the rise in stock prices.
(Liabilities)
Liabilities as of December 31, 2017 amounted to ¥31,674 million, a decrease by ¥2,490 million from March 31, 2017, due
to the repayments of long-term loans payable.

- 3 -(Net assets)
Net assets as of December 31, 2017 increased by ¥2,141 million compared to March 31, 2017 to ¥55,556 million mainly
due to an increase in valuation difference on mark-to-market available-for-sale securities and an increase in retained
earnings.
As a result, equity ratio as of December 31, 2017 increased by 2.5 points to 61.2% compared to March 31, 2017.
(3) Qualitative Information on Consolidated Earnings Forecast
There is no change as to Consolidated Earnings Forecast for the Year Ending March 2018 which was announced in the
Financial Results for the Year Ended March 31, 2017 [J-GAAP] dated May 11, 2017.

- 4 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY3/17(As of March 31, 2017)

Third quarter of FY3/18(As of December 31, 2017)

AssetsCurrent assets
Cash and deposits

3,713,841

4,919,770

Notes and accounts receivable-trade

1,105,796

1,183,127

Securities

2,000,000－

Lease receivables and investment assets

5,613,569

6,025,463

Operating loans

6,409,607

5,615,148

Raw materials and supplies

13,46915,385

Deferred tax assets

137,464

137,464

Others222,372

620,553

19,216,120

18,516,912

Buildings and structures, net

45,781,042

44,402,018

Machinery, equipment and vehicles, net

4,807,542

5,114,975

54,200106,730

9,659,676

9,789,111

592,925

680,665

60,895,387

60,093,502

Software15,331

26,692Others15,08015,080Total intangible assets

30,411

41,773

6,242,057

7,693,661

2,823

2,368

Deferred tax assets

407,807

72,932

Net defined benefit asset

178,133

145,148

Others641,941

699,708

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

Total investments and other assets

7,438,196

8,579,253

68,363,995

68,714,529

87,580,116

87,231,442

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

Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable

Total non-current assets
Total assets- 5 -(Thousands of yen)
FY3/17(As of March 31, 2017)

Third quarter of FY3/18(As of December 31, 2017)

Liabilities
Current liabilities
952,151

692,820

4,491,774

4,484,697

Accounts payable

630,096591,729

Income taxes payable

753,798442,636

Accrued expenses

82,98986,475

Unearned revenue

943,936

1,464,892

Provision for bonuses

128,380

57,648Provision for directors’ bonuses

24,297

13,990

Provision for removal cost of property, plant and equipment

28,91347,843

Others519,819

460,5038,556,157

8,343,236

Long-term loans payable

19,502,373

17,161,474

Long-term guarantee deposited

5,402,001

5,489,987

Long-term accounts payable-other345,169

355,033

Notes and accounts payable-trade
Short-term loans payable

Total current liabilities
Non-current liabilities

1,044

6,498

358,325

318,240

25,608,913

23,331,233

34,165,070

31,674,470

Capital stock

6,826,100

6,826,100

Capital surplus

6,983,993

6,984,670

Retained earnings

36,949,740

37,993,938

Treasury stock(1,559,198)(1,553,565)

Total shareholders’ equity

49,200,635

50,251,143

Valuation difference on available-for-sale securities

2,418,429

3,177,202

Foreign currency translation adjustment(181,790)(55,712)

Total accumulated other comprehensive income

2,236,639

3,121,490

55,022

79,896

Non-controlling interests

1,922,748

2,104,442

Total net assets

53,415,045

55,556,971

87,580,116

87,231,442

Provision for directors’ retirement benefits
Provision for removal cost of property, plant and equipment
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 nine months of FY3/17(April 1, 2016 – December 31, 2016)

First nine months of FY3/18(April 1, 2017 – December 31, 2017)

Net sales

16,177,122

16,992,394

Cost of sales

11,796,846

12,396,304

Gross profit

4,380,276

4,596,089

Directors’ compensations

231,928

237,561

Salaries and bonuses

385,980

387,765

Selling, general, and administrative expenses

Provision for bonuses

39,28534,854

Provision for directors’ bonuses

12,14813,990Transportation and communication expenses

81,45883,479Taxes and dues

73,612

114,247

Depreciation
OthersTotal selling, general, and administrative expenses
Operating income

5,775

10,024436,277

499,065

1,266,466

1,380,987

3,113,809

3,215,102

Non-operating income
00142,260

162,625

Commission fee

52,92849,369Gain on reversal of provision for removal cost

106,582－

Interest income
Dividends income

Others59,14150,641

Total non-operating income

360,913

262,637

269,844

257,430
88,606

Non-operating expenses
Interest expenses
Removal cost of property, plant and equipment

24,288Provision for removal cost

166,060－

Foreign exchange losses

43,165

146,629

OthersTotal non-operating expenses
Ordinary income

3,398

17,637506,756

510,3022,967,967

2,967,437

Extraordinary loss
Loss on retirement of non-current assets

931

366

Total extraordinary loss

931

366

Income before income taxes

2,967,036

2,967,070

932,253

979,4122,034,782

1,987,657

Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 7 -180,602

220,022

1,854,180

1,767,634

(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of yen)First nine months of FY3/17(April 1, 2016 – December 31, 2016)

First nine months of FY3/18(April 1, 2017 – December 31, 2017)

2,034,782

1,987,657

ProfitOther comprehensive income

96,075

758,772

Foreign currency translation adjustment

Valuation difference on available-for-sale securities(511,283)

126,077

Total other comprehensive income(415,208)

884,850

1,619,574

2,872,508

Comprehensive income attributable to owners of parent

1,438,971

2,652,485

Comprehensive income attributable to non-controlling interests

180,602

220,022

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.
(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 December 31, 2017.
(Changes in Accounting Policies)
Not applicable.
(Changes in Accounting Estimates)
Not applicable.

3. Others(Significant Subsequent Events)
The Board of Directors meeting held on January 25, 2018 passed a resolution on the acquisition of treasury stock in accordancewith Article 156 of the Companies Act applied by replacing the terms pursuant to Article 165, Paragraph 3 of the Act, and also
on the retirement of treasury stock in accordance with Article 178 of the Act.
1. Reasons for Acquisition and Retirement of Treasury StockTo execute flexible capital policy corresponding to changes in the business environment.
2. Details of the Acquisition(1) Class of shares to be acquired(2) Total number of shares to be acquired(3) Total acquisition amount(4) Announcement of the result of the acquisition(5) Method of the acquisition

Common stock of the Company
Up to 2,100,000 shares¥1,417 million
The result of the acquisition will be announced after the close of
trading at 8:45 a.m. on January 26, 2018.
The Company will place a purchase order through off-auction own
shares repurchase trading system of Tokyo Stock Exchange(ToSTNeT-3).

3. Details of the Retirement(1) Class of shares to be retired(2) Total number of shares to be retired

Common stock of the Company
2,100,000 shares(3.82% of total issued shares before the retirement)
52,803,750 shares
February 14, 2018(3) Total number of issued shares after the retirement(4) Scheduled date of the retirement(Note) Total number of shares to be retired in 3. (2) above shall be limited to the number of shares that becomes available
for acquisition in the acquisition of treasury stock scheduled on January 26, 2018 (the planned number of shares tobe acquired is 2,100,000 shares).
(Reference)

Treasury stock as of December 31, 2017
Total number of issued shares (excluding treasury stock) 51,679,839 shares
Treasury stock
3,223,911 shares- 9 -