May 14, 2020

Financial Results for the Year Ended March 31, 2020 [J-GAAP]
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: Masaaki Kai, President and CEO
Inquiries: Takahiro Hama, Corporate Officer, General Manager of Accounting Dept. TEL: +81-3-3747-0251
The Date of the Ordinary General Shareholders’ Meeting: June 26, 2020
The Date of the Dividend Payment Start:
June 29, 2020
The Date of Filing the Securities Report:
June 26, 2020
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 Year Ended March 2020 (April 1, 2019 - March 31, 2020)(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
Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

24,85524,213

2.6
6.2

4,186
4,129

1.3
0.6

3,802
3,338

13.8
(10.4)

2,227
2,104

5.8
(5.2)

March 31, 2020
March 31, 2019
(Note) Comprehensive income:Fiscal year ended March 31, 2020:
Fiscal year ended March 31, 2019:

Net income
per share

Diluted net income
per share((35.7%))((35.1%))

Ordinary income toOperating margin
total assets

Return on equity

Yen

Yen

%

%

%

44.72
42.28

44.56
42.11

4.1
3.9

3.6
3.5

16.8
17.0

Fiscal year ended

March 31, 2020
March 31, 2019

1,290 million yen
2,008 million yen(Reference) Equity in earnings of affiliates:

Fiscal year ended March 31, 2020:
Fiscal year ended March 31, 2019:(2) Consolidated Financial Position
Total assets－ million yen－ million yen

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

104,483
101,384

56,33355,74051.5
52.6

1,080.48
1,072.90

As of March 31, 2020
As of March 31, 2019
(Reference) Equity capital:

As of March 31, 2020: 53,854 million yen

As of March 31, 2019: 53,387 million yen(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at year end

Millions of yen

Millions of yen

Millions of yen

Millions of yen

6,900
5,176

(8,217)(13,490)

1,958
9,524

6,518
5,824

March 31, 2020
March 31, 2019
2. Dividends

Total
dividends(annual)Dividends per share

Q1
Fiscal year ended

March 31, 2019
March 31, 2020
Fiscal year ending

March 31, 2021
(Forecasts)

Q2
Yen

Q3
Yen

Q4
Yen

AnnualPayout ratio(consolidated)

Dividends to
net assets(consolidated)

Yen

Yen

Millions of yen

%

%

―
―

7.00
7.00

―
―

7.00
7.00

14.00
14.00

696
697

33.1
31.2

1.3
1.3

―

7.00

―

7.00

14.00

53.1

3. Forecast of Consolidated Earnings for the Year Ending March 2021 (April 1, 2020 - March 31, 2021)(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

12,59025,690

0.2
3.3

2,010
3,960

(19.8)
(5.3)

1,850
3,210

(23.8)(15.5)

760
1,310(50.3)(41.1)

15.24
26.28

(Note) The above forecasts incorporate the impact of the spread of novel coronavirus infection based on the currently available
estimate, but they are subject to change depending on the future development.

- 1 -＊Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting from changes in scope of consolidation): Yes
Newly included: AFS PROPERTIES PTE. LTD.
(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, 2020:
52,979,350 shares As of March 31, 2019:
52,979,350 shares(including treasury stock)2) Number of treasury stock
As of March 31, 2020:
3,136,206 shares As of March 31, 2019:
3,219,779 shares
3) Average number of shares during Year ended March 31,
Year ended March 31,
49,810,571 shares
49,758,606 sharesthe period
2020:
2019:

(Reference) Summary of Non-consolidated Results
1. Non-consolidated Financial Results for the Year Ended March 2020 (April 1, 2019 - March 31, 2020)(Percentages are changes from the same period of the previous year.)(1) Non-consolidated Business Results
Operating income
Ordinary income
Net income
Net sales
Fiscal year ended

March 31, 2020
March 31, 2019

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

21,60520,946

3.1
6.7

3,019
2,960

2.0
6.4

3,045
2,596

17.2
(10.7)

1,801
1,721

4.6
(12.4)Net income
per share
Fiscal year ended

March 31, 2020
March 31, 2019

Diluted net income
per share
Yen

Yen

36.17
34.60

36.03
34.45

(2) Non-consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

91,76388,86851,40451,40855.9
57.7

1,029.43
1,030.84

As of March 31, 2020
As of March 31, 2019
(Reference) Equity capital

Net assets

As of March 31, 2020: 51,310 million yen

As of March 31, 2019: 51,294 million yen

2. Forecast of Non-consolidated Earnings for the Year Ending March 2021 (April 1, 2020 – March 31, 2021)(Percentages are changes from the same period of the previous year.)Net salesFirst half
Full fiscal year

Ordinary income

Net income

Net income per share

Millions of yen%

Millions of yen%

Millions of yen%

Yen

10,80022,130

(0.9)
2.4

1,310
2,290

(34.3)(24.7)

650
1,020(52.0)(43.3)

13.04
20.46

(Note) The above forecasts incorporate the impact of the spread of novel coronavirus infection based on the currently available
estimate, but they are subject to change depending on the future development.

＊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 5 “1. Summary of Operating Results, etc. (4) Progress Status of the Medium-term Management Plan and Future
Outlook”.

- 2 -1. Summary of Operating Results, etc.
(1) Summary of Operating Results for the Year Ended March 2020
During the year ended March 31, 2020, under the continuing monetary easing policy by the Bank of Japan, theJapanese economy continued to see sluggish export and production as a consequence of the prolonged U.S.-China
trade friction and the slowdown of the Chinse economy during 2019 and, on top of that, started to suffer serious
damage from the pandemic of the novel coronavirus, which was first identified in Wuhan, China, after the turn of
the year.
Especially since March 2020, the infection has spread from China to Europe, the U.S. and all over the world
causing many countries to expand the areas subject to the travel and entry restrictions. Also in Japan, Tokyo
Metropolitan area and many other regions implemented various measures to reduce the movement of people
including issuing a request to refrain from making nonessential outings and hosting events. As a result, the numberof inbound visitors and personal consumption significantly declined, leading to an unprecedented economic
downturn around the world.
In the aviation industry, during 2019, the number of passengers showed steady growth for both international anddomestic flights, with international flights supported by the Rugby World Cup and strong inbound demand from
China and Southeast Asia. Since March 2020, however, the business environment surrounding airline companies
has become extremely harsh due to the impacts caused by the novel coronavirus, including a significant decline
both in domestic and international flights, stagnant demand for air cargo, the postponement of the 2020 Tokyo
Olympic and Paralympic Games to next summer and cancelation of business trips and events.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of¥24,855 million (up 2.6% from the previous fiscal year) due to full-year operation of the hotel in Kyoto acquired inJune 2018, the launch of the business that leases training planes to Civil Aviation College, and a start of leasing new
facilities. Operating income was ¥4,186 million (up 1.3%). Ordinary income was ¥3,802 million (up 13.8%) due toan absence of bond issuance cost which was recorded in non-operating expenses in the previous fiscal year and adecrease in provision for removal cost. Although the Company recorded extraordinary loss during the year related
to the damage caused by typhoons in fall 2019, profit attributable to owners of parent increased to ¥2,227 million(up 5.8%), and the consolidated financial results for the fiscal year ended March 31, 2020 progressed largely asplanned with increased net sales and profit.
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥18,727 million (up 3.3% from the previous fiscal year), due toan improved tenant occupancy ratio in Tokyo International Airport, a revision of the agreements to raise
rents for certain existing facilities, full-year operation of the hotel in Kyoko whose lease started in late June
2018, start of leasing training planes to Civil Aviation College in April 2019, start of leasing the newextended hangar at Kobe Airport and an aircraft equipment warehouse at Tokyo International Airport
completed in December, and start of leasing a renovated in-flight meal factory in ARC Building in January
2020. Operating income was ¥3,086 million (down 0.6%) due to the cost increase including an increase inrepair expenses and recording of taxes and dues associated with acquisition of new property.
(ii) Area Heating & Cooling BusinessNet sales of Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport
Heating & Cooling Co., Ltd. remained almost unchanged year-on-year at ¥3,274 million (up 0.9% from theprevious fiscal year). Operating income was ¥849 million (up 7.8%) due to reduction of repair expenses andraw material costs, despite an increase in depreciation of boiler equipment that was renewed in 2018.
(iii) Water Supply & Drainage Service and Other Business- 3 -Water Supply & Drainage Service and Other Business saw a solid growth of water supply and drainage usage at Tokyo
International Airport and a rebound in demand at New Chitose Airport from the decline after the earthquake in
September 2018 until February 2020. After March 2020, although water supply and drainage usage significantly
decreased due to a sharp drop in the number of airport users affected by the novel coronavirus, the use of exclusive
lines in shared telecommunications network service at Tokyo International Airport increased. As a result, net sales was¥2,853 million (down 0.0% from the previous fiscal year) and operating income was ¥250 million (up 5.6%).
(2) Summary of Financial Position as of March 31, 2020
(Assets)
Total assets as of March 31, 2020 amounted to ¥104,483 million, an increase by ¥3,099 million compared to March
31, 2019, due to the completion of the extension of a hangar at Kobe Airport and the construction of an aircraft
equipment warehouse, an increase in construction in progress associated with the extension or reconstruction of inflight meal factory in ARC Building at Tokyo International Airport completed in January 2020 and the constructionof an aircraft sewage treatment facility (SD plant) completed in February 2020, and an additional investment in
Haneda Innovation City in Zone 1 of the Former Haneda Airport Ground.
(Liabilities)
Liabilities as of March 31, 2020 amounted to ¥48,150 million, an increase by 2,505 million compared to March 31, 2019,
due to an increase in long-term loans payable associated with acquisition of new property.
(Net assets)
Net assets as of March 31, 2020 increased by ¥593 million compared to March 31, 2019 to ¥56,333 million mainly due toan increase in retained earnings. As a result, equity ratio as of March 31, 2020 decreased by 1.1 points to 51.5% comparedto March 31, 2019.
(3) Summary of Cash Flows for the Fiscal Year Ended March 31, 2020
Cash and cash equivalents (“cash”) as of March 31, 2020 amounted to ¥6,518 million, an increase of ¥694 million fromMarch 31, 2019.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥6,900 million (previous fiscal year: ¥5,176 million provided), mainly
attributable to income before income taxes, depreciation and amortization, collection of operating loans receivable,
despite cash outflows associated with the payment of income taxes and acquisition of lease investment assets.
(Cash flows from investing activities)
Net cash used in investing activities was ¥8,217 million (previous fiscal year: ¥13,490 million used), mainly attributableto purchase of non-current assets associated with extension and reconstruction of ARC Building.
(Cash flows from financing activities)
Net cash provided by financing activities was ¥1,958 million (previous fiscal year: ¥9,524 million provided), mainly
attributable to an increase in long-term debt associated with acquisition of new property.
(Reference) Cash Flow Indicators
FY2018/3

FY2019/3

FY2020/3

Equity ratio (%)

59.4

52.6

51.5

Equity ratio at market value (%)

38.1

28.8

20.3

Debt repayment period (years)

3.2

6.5

5.2

Interest coverage ratio (times)

21.1

12.8

16.5

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- 4 -(Notes)

1. All indicators are calculated using financial figures on a consolidated basis.
2. Interest-bearing debt includes all debt recorded on the consolidated balance sheets on which interest ispaid.
3. 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) Progress Status of the Medium-term Management Plan and Future Outlook
As for the progress status of the Medium-term Management Plan for three years developed in May 2019, the financial
results for the fiscal year ended March 31, 2020 progressed largely as planned as mentioned above.
Regarding the fiscal year ending March 31, 2021, we originally forecasted a significant increase in net sales based on thefactors including the start of leasing an in-flight meal factory in ARC Building and an aircraft equipment warehouse at
Tokyo International Airport from December 2019 and full-year operation of the new extended hangar at Kobe Airport aswell as the start of operation of the Haneda Innovation City scheduled to be completed in July 2020. However, due to the
spread of the novel coronavirus since March, the aviation industry has suffered a sharp drop in the number of passengers
for domestic and international flights, and we not only received direct impacts such as a significant sales decline in watersupply and drainage service at Tokyo International Airport and New Chitose Airport but also expect to receive requests forrent reduction from aviation-related tenants in the real estate business. With respect to rent, although it has yet to be
determined, we plan to exempt rent by forgiving rent receivable rather than not recording rent income as a temporary
measure. Under such circumstances, the forecasts for the fiscal year ending March 31, 2021 include consolidated net salesof ¥25,690 million (up 3.3% from the previous fiscal year), operating income of ¥3,960 million (down 5.3%), ordinary
income of ¥3,210 million (down 15.5%), and profit attributable to owners of parent of ¥1,310 million (down 41.1%), andwe assume a significant decline in profit is unavoidable especially for the first half of the fiscal year ending March 31,
2021.
The forecasts for the fiscal year ending March 31, 2022 remain unchanged from those set forth in “Medium-termManagement Plan for FY ending March 2020 to March 2022” at this point, but because the future outlook is extremely
uncertain, we will continue to closely monitor the situation without making any prejudgment and take appropriate
measures.
(5) Basic Policy Regarding Distribution of Earnings and Dividends for the Year Ended March 31, 2020 and the YearEnding March 31, 2021
We plan distribution of earnings taking into consideration maintenance of stable management base and enhancement offinancial strength, and our dividend policy is to stably return profits to shareholders based on the comprehensive
consideration over the current performance and future outlook, with the dividend payout ratio of over 30% in principle.
Based on the above policy and the performance, the dividend for the year ended March 31, 2020 is expected to be ¥14
per share consisting of interim dividend of ¥7 per share and year-end dividend of ¥7 per share (payout ratio of 31%).
Although a profit decline appears to be unavoidable due to the impact of the novel coronavirus, we plan to pay
dividends for the next fiscal year at ¥14 per share as usual (including interim dividend of ¥7 per share, the dividend
payout ratio of approx. 53%) at this point.

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 Sheets(Thousands of yen)
FY3/19(As of March 31, 2019)

FY3/20(As of March 31, 2020)

AssetsCurrent assets
Cash and deposits

4,324,573

6,518,663

Notes and accounts receivable-trade

1,208,590

1,267,240

Securities

1,500,000－

Lease receivables and investment assets

6,600,080

7,286,793

Operating loans

5,741,839

4,918,584

12,908

11,099Raw materials and supplies
Others

1,456,944

2,240,924

Total current assets

20,844,937

22,243,308

162,722,788

168,580,868(115,363,210)(118,168,219)

Buildings and structures, net

47,359,577

50,412,649

Machinery, equipment and vehicles

18,826,372

19,704,050(13,430,679)(13,338,264)

5,395,693

6,365,786

Tools, furniture and fixtures

1,059,644

1,089,247

Accumulated depreciation(490,837)(668,952)

Tools, furniture and fixtures, net

568,807420,294

Land

14,596,026

14,902,098

Construction in progress

3,299,425

1,537,155

Total property, plant and equipment

71,219,530

73,637,983

27,023249,722－335,029

Others14,906

15,219Intangible assets

41,929599,972

7,671,946

6,545,514

1,732

1,332

Deferred tax assets

320,447

700,505

Net defined benefit asset

203,945

149,523

Others1,090,548

616,108

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

Total investments and other assets

9,278,352

8,002,716

Total non-current assets

80,539,812

82,240,672

101,384,749

104,483,980

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

Accumulated depreciation
Machinery, equipment and vehicles, net

Intangible assets
Software
Software in progress

Investments and other assets
Investment securities
Long-term loans receivable

Total assets- 6 -(Thousands of yen)
FY3/19(As of March 31, 2019)

FY3/20(As of March 31, 2020)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,532,544

1,117,627

Short-term loans payable

5,974,226

6,642,749

Accounts payable

1,064,205

935,285

Income taxes payable

557,004

567,586

Accrued expenses

109,744788,460

Unearned revenue

1,045,001

1,117,907

Provision for bonuses

131,094

135,083

Provision for directors’ bonuses

30,05826,715

Provision for removal cost of property, plant and equipment

364,598

226,392

Others384,329

330,139

11,192,806

11,887,946

Bonds payable

6,000,000

6,000,000

Long-term loans payable

21,729,366

23,402,486

Long-term guarantee deposited

5,915,755

6,286,570

Long-term accounts payable-otherTotal current liabilities
Non-current liabilities

476,128

326,067

Provision for directors’ retirement benefits

1,044

2,436

Deferred tax liabilities

6,379

16,311

323,237

190,804－

37,96534,451,910

36,262,641

45,644,717

48,150,587

6,826,100

6,826,100

Provision for removal cost of property, plant and equipment
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus

6,982,890

6,982,890

Retained earnings

38,777,424

40,315,327

Treasury stock(1,784,131)(1,737,829)

Total shareholders’ equity

50,802,282

52,386,487

Valuation difference on available-for-sale securities

2,817,756

1,682,442

Foreign currency translation adjustment(232,638)(214,202)

Total accumulated other comprehensive income

2,585,117

1,468,239

Subscription rights to shares

113,808

94,722

Non-controlling interests

2,238,823

2,383,942

Accumulated other comprehensive income

Total net assets
Total liabilities and net assets- 7 -55,740,032

56,333,393

101,384,749

104,483,980

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Thousands of yen)
FY3/19(April 1, 2018 –March 31, 2019)

FY3/20(April 1, 2019 –March 31, 2020)

Net sales
Cost of sales

24,213,529
18,098,758

24,855,730
18,625,342

Gross profit
Selling, general, and administrative expenses
Directors’ compensations
Salaries and bonuses
Provision for bonuses
Provision for directors’ bonuses
Provision for retirement benefits for directors (andother officers)
Transportation and communication expenses
Depreciation
Taxes and dues
Others6,114,770

6,230,388

329,881
527,022
81,46330,058313,513571,62184,67026,715

1,392

1,392

107,075
28,687
170,252
709,159

93,875
28,101
168,779
755,681

Total selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Commission fee
Foreign exchange gains
Others1,984,991
4,129,778

2,044,348
4,186,039

1
171,384
21,83944,75390,6504,118
175,543
38,934－51,605

Total non-operating income
Non-operating expenses
Interest expenses
Removal cost of property, plant and equipment
Provision for removal cost
Foreign exchange losses
Bond issuance cost
Others328,629

270,201

421,116
61,142495,524－
119,788
22,508416,094
114,489
93,95922,590－7,071

1,120,079
3,338,328

654,2033,802,037

617,417－－
2,541

15,653120,067
46,7396,839

619,959

189,300
165,441
112,80937,199124,330

Total extraordinary loss
Income before income taxes
Income taxes
Income taxes - deferred

171,720555,531－－727,251
3,231,036
1,009,965(34,964)

439,781
3,551,556
1,009,830
130,318

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

975,001
2,256,035
151,978
2,104,057

1,140,148
2,411,408
183,447
2,227,960

Total non-operating expenses
Ordinary income
Extraordinary income
Insurance income
Penalty income
Nonrecurring income
OthersTotal extraordinary income
Extraordinary loss
Loss on retirement of non-current assets
Loss on disaster
Nonrecurring loss
PCB treatment cost- 8 -(Consolidated Statements of Comprehensive Income)(Thousands of yen)
FY3/19(April 1, 2018 –March 31, 2019)

FY3/20(April 1, 2019 –March 31, 2020)

2,256,035

2,411,408

Valuation difference on available-for-sale securities(35,820)(1,135,313)

Foreign currency translation adjustment(211,647)

14,738

Total other comprehensive income(247,467)(1,120,575)

2,008,567

1,290,833

1,856,589

1,107,385

151,978

183,447

ProfitOther comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 9 -(3) Consolidated Statements of Changes in Net Assets
For the Year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(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(1,786,417)

49,404,317

37,381,745

Changes of items during the period
Dividends from surplus(696,606)(696,606)

Profit attributable to owners of parent

2,104,057

2,104,057

Purchase of treasury stock
Disposal of treasury stock(38)

Retirement of treasury stock

(95)

(95)

2,382

2,344

(11,734)(11,734)

Net changes of items other than shareholders’ equity－

Total changes of items during the period
Balance at the end of current period－－

1,395,678

2,286

1,397,965

6,826,100

6,982,890

38,777,424(1,784,131)

50,802,282

Subscription
rights toshares

Noncontrollinginterests

Total
net assets

79,8962,125,175

54,482,578

Accumulated othercomprehensive income

Balance at the beginning of current period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

2,853,576

19,613

Total
accumulated
othercomprehensive
income2,873,189

Changes of items during the period
Dividends from surplus－(696,606)

Profit attributable to owners of parent－

2,104,057

Purchase of treasury stock

－

(95)

Disposal of treasury stock

－

2,344

Retirement of treasury stock(40,604)(40,604)(35,820)(211,647)(247,467)

Total changes of items during the period(35,820)(252,252)(288,072)

33,912

113,648

1,257,454

Balance at the end of current period

2,817,756(232,638)

2,585,117

113,8082,238,823

55,740,032

Net changes of items other than shareholders’ equity- 10 -(52,338)
33,912

113,648(99,906)

For the Year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(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(1,784,131)

50,802,282

38,777,424

Changes of items during the period
Dividends from surplus(696,973)

Profit attributable to owners of parent

2,227,960

Purchase of treasury stock
Disposal of treasury stock(116)

Change in scope of consolidation

7,032(696,973)
2,227,960
(67)

(67)

46,36946,253
7,032

Net changes of items other than shareholders’ equity－

Total changes of items during the period
Balance at the end of current period－－

1,537,903

46,301

1,584,205

6,826,100

6,982,890

40,315,327(1,737,829)

52,386,487

Subscription
rights toshares

Noncontrollinginterests

Total
net assets

113,8082,238,823

55,740,032

Accumulated othercomprehensive income

Balance at the beginning of current period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

2,817,756(232,638)

Total
accumulated
othercomprehensive
income2,585,117

Changes of items during the period
Dividends from surplus－(696,973)

Profit attributable to owners of parent－

2,227,960

Purchase of treasury stock

－

(67)

Disposal of treasury stock
Change in scope of consolidation－

46,253

3,697

3,697

10,730Net changes of items other than shareholders’ equity(1,135,313)

14,738(1,120,575)(19,085)

145,118(994,542)

Total changes of items during the period(1,135,313)

18,436(1,116,877)(19,085)

145,118

593,360

Balance at the end of current period

1,682,442(214,202)

1,468,239

94,722

2,383,942

56,333,393- 11 -

(4) Consolidated Statements of Cash Flows(Thousands of yen)
FY3/19(April 1, 2018 –March 31, 2019)

FY3/20(April 1, 2019 –March 31, 2020)

Cash flows from operating activities
Income before income taxes

3,231,036

3,551,556

Depreciation and amortization

4,033,394

4,011,770

555,531

112,809322,324(270,639)

14,63954,421(5,802)

1,392

Loss on disaster
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

2,696

3,989

2,078

(3,343)(171,385)(179,661)

Increase (decrease) in allowance for doubtful accounts(24,300)

Insurance income(617,417)−(15,653)

Increase (decrease) in provision for directors’ bonuses
Interest and dividend income−

124,330(120,067)

Share-based compensation expenses−
36,252

Interest expenses

421,116

416,094

Bond issuance cost

119,788

Loss on retirement of non-current assets

PCB treatment cost
Penalty income

27,084

171,720−
165,441

Decrease (increase) in notes and accounts receivable

1,372(58,582)

Decrease (increase) in inventories
Net decrease (increase) in lease receivables andinvestment assets
Decrease (increase) in operating loans receivable

1,768

1,808

349,646(655,685)(548,764)

798,124

30,712(74,767)

61,72572,703

Increase (decrease) in accrued expenses(32,961)

679,729

Increase (decrease) in accrued consumption taxes(347,067)

231,938(1,615,550)(314,216)

Increase (decrease) in notes and accounts payable
Increase (decrease) in unearned revenue

Decrease (increase) in other assets
Increase (decrease) in other liabilities(92,790)

18,487

Subtotal

5,899,762

8,579,064

Interest and dividends received
Interest paid

171,385(402,820)

179,661(417,940)

Proceeds from insurance income

617,417

15,653

Payments for loss on disaster(76,746)(577,292)

Proceeds from penalty income

120,067

Income taxes paid−
(1,032,790)(999,141)

Net cash provided by operating activities

5,176,209

6,900,072

Cash flows from investing activities
Purchase of non-current assets(12,733,042)(7,702,822)

Purchase of investment securities(758,050)(514,862)

Collection of long-term loans receivable
Net cash used in investing activities- 12 -

485

400(13,490,607)(8,217,284)

(Thousands of yen)
FY3/19(April 1, 2018 –March 31, 2019)

FY3/20(April 1, 2019 –March 31, 2020)

Increase in short-term loans payable

3,598,051

4,928,909

Decrease in short-term loans payable
Proceeds from long-term debt

(4,898,051)(4,303,517)

9,022,513

6,600,000

Payments of long-term debt

(3,621,076)(4,901,957)

5,880,211−

Cash flows from financing activities

Proceeds from issuance of bonds
Proceeds from guarantee deposits received

490,112492,079

Repayments of guarantee deposits received(212,675)(121,264)

Proceeds from sales of treasury stock

4

83

Purchase of treasury stock

(95)

(67)

Payment of cash dividends(696,504)(696,984)

Cash dividends paid to non-controlling interests(38,329)(38,329)

Net cash provided by financing activities

9,524,159

1,958,950

Effect of exchange rate change on cash and cash equivalents(42,498)

33,738Net increase in cash and cash equivalents

1,167,262

675,476

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period

4,608,382

5,824,573

48,927

18,614

5,824,573

6,518,663- 13 -

(Segment Information)a. 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 andevaluate 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, “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 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, assets, liabilities, and other items by reportable segments
Fiscal year ended March 2019 (April 1, 2018 – March 31, 2019)(Thousands of yen)
Reportable Segment
Water Supply &Area Heating &Real Estate
Drainage
CoolingService andBusiness
Business
Other Business

Total

Adjustments(Note)

Carrying Amounton Consolidated
Statements ofIncomeNet sales
Net sales to outside
customers

18,116,348

3,242,281

2,854,899

24,213,529－

24,213,529

Inter-segment
net sales/transfers

244,428

858,712257,411

1,360,553(1,360,553)－

18,360,777

4,100,993

3,112,310

25,574,082(1,360,553)

24,213,529

Segment income

3,105,139

787,387

237,252

4,129,778－

4,129,778

Segment assets

78,186,213

7,026,093

1,500,805

86,713,112

14,671,637

101,384,749

Segment liabilities

9,284,757

1,135,945

186,950

10,607,654

35,037,062

45,644,717

Depreciation andamortization

3,264,384

507,878

232,444

4,004,707

28,687

4,033,394

Increase in property, plantand equipment andintangible assets

12,398,513

1,175,920

21,125

13,595,559

15,608

13,611,167

Total

Other items(Note)

Adjustments represent elimination of intersegment transactions.

- 14 -

Fiscal year ended March 2020 (April 1, 2019 – March 31, 2020)(Thousands of yen)
Reportable Segment
Area Heating &Real Estate
Cooling
Business
Business

Water Supply &Drainage
Service andOther Business

Total

Adjustments(Note)

Carrying Amounton Consolidated
Statements ofIncomeNet sales
Net sales to outside
customers

18,727,273

3,274,631

2,853,826

24,855,730－

24,855,730

Inter-segment
net sales/transfers

245,360

850,803

243,833

1,339,997(1,339,997)－

18,972,633

4,125,434

3,097,659

26,195,728(1,339,997)

24,855,730

Segment income

3,086,262

849,011

250,765

4,186,039－

4,186,039

Segment assets

80,463,201

8,115,835

1,325,314

89,904,352

14,579,628

104,483,980

Segment liabilities

9,027,516

779,675

847,331

10,654,523

37,496,063

48,150,587

Depreciation andamortization

3,219,079

548,791

215,798

3,983,669

28,101

4,011,770

Increase in property, plantand equipment andintangible assets

5,122,727

1,629,772

24,993

6,777,494

376,214

7,153,708

Total

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

- 15 -