Number of Shareholders:

7,549

A
FC
REPOR T

Share Unit Number:

100 sharesFiscal year ended March 31, 2022

■ Corporate Profile (as of March 31, 2022)■ Stock Information (as of March 31, 2022)

Corporate Name: Airport Facilities Co., Ltd. (AFC)Stock Listings:

Established:

February 1970

Capital:¥6,826.10 million yen

Employees:

122 (Consolidated) 116 (xxx)Tokyo Stock Exchange (TSE)
Prime Market(from April 4, 2022)(Ticker Code: 8864)

Total Number of Shares Authorized: 124,800,000
Total Number of Shares Issued: 52,979,350■ Directors and Corporate Auditors(As of June 29, 2022)

Directors

The Company (Treasury Stock)

Chairman and Executive Officer

Kenya Inada

President and Executive Officer

Toshiaki Norita

0.49%

Executive Vice President

Katsuhiro Yamaguchi

ForeignInvestors

Managing Executive Officer

Keisuke KomatsuManaging Executive Officer

Shigeo Tamura

Managing Executive Officer

Fuminori Tsuboi

External Director

Takehiko Sugiyama

External Director

Kayo Aoyama

External Director

Toshikatsu Ogura

Corporate Auditors
Managing Executive Officer

Fuminori Tsuboi

Full-time Statutory Auditor

Kazuhiko Muraishi

Full-time Statutory Auditor

Masaaki Komiya

Statutory Auditor

Akihiko Shiba

Statutory Auditor

Shigeto Kubo

April 1, 2021 March 31, 2022

Composition of Shareholders
Securities Companies

5.73%
Individuals

13.48%

15.15%
Financial
Institutions
Other JapaneseCorporations

43.63%

21.52%

Major Shareholders
Shareholder

Number of Shares Owned(thousands)

Ratio of Shareholding(%)

Japan Airlines Co., Ltd.

10,52121.08

ANA HOLDINGS INC.

10,521

21.08

Development Bank of Japan Inc.

6,920

13.86

The Master Trust Bank ofJapan, Ltd. (Trust Account)

2,549

5.10

MLI FOR CLIENT GENERALOMNI NON COLLATERAL NON TREATY-PB

1,637

3.28

AIRPORT FACILITIES CO., LTD.
(Ticker Code: 8864)

■ FY2022 Performance Highlights

Message from the President

Net sales (¥ Million)

Operating income (¥ Million)

24,855

We capitalize on environmental change,to accelerate on enhancement of value creation,
throughout our business.

24,155strategies affecting key resources to support growth andstakeholders for their continuous support. On the economic front,

development."

showing signs of recovery form the impact of COVID-19 pandemic,
has uncertainty by the recent Ukraine conflict.
Under challenging environment, the granting of rental andThis plan places our three businesses at the center of ourpriority measures.
① Haneda Airport 1-Chome project

heating charges relief for our customers, together with the addition

We aim to improve our profitability through the reorganizationof full-year operation of new facilities, partial recovery of waterproject of Haneda Airport 1-Chome area, which is the place of

supply and drainage service usage fee, our group for FY2021, has

AFC’s founding.

realized net sales of ¥23.7 billion, resulting in operating income of② Expansion of non-asset businesses¥3.2 billion and ordinary income of ¥2.9 billion. Taking into consider-

We aim to grow and expand our outside airport real estate andation to further improve our asset efficiency, the plan of sales of ourasset management portfolio.

hotels in Kyoto, under the backdrop of lagging inbound demand,③ Improvement of the profitability of existing businesses

the impairment loss taken, we have attained ¥800 million in

We aim to grow and strengthen occupancy rate and rental

profitability. As there is no direct impact on our revenue base, duerevenue, and restructuring properties.

to the impairment loss undertaken, we are pleased to deliver our

Through such efforts, we aim to create unique value within andcommitted interim dividend of 7 yen per share and an annual

outside airports.

dividend of 14 yen per share.

We would like to ask for the continuous understanding and

On May 13, we have announced our Medium- to Long-Term
Management Plan covering the seven years from FY2022 to FY2028.
We will be implementing our post pandemic strategy, under thebasic policy of "Maximizing and continuous implementation of
1 AIRPORT FACILITIES CO., LTD.

support of our shareholders and investors.

3,831

3,280

（2,460)*2021/32022/3

Ordinary income (¥ Million)
3,802

We would like to express our sincere thanks to shareholders and

4,186(22,784)*

2020/3President and CEO

23,7772020/32022/3

Profit (loss) attributable to owners of parent (¥ Million)
3,617

2,962

2,227

2021/3821△933(2,247)*2020/32021/32022/32020/32021/32022/3For comparative purpose, exemption of rent was not been reported as an extraordinary loss but was deducted from sales in FY2020 - shown in shadein the chart (*). Comparing FY2021 and FY2020 -highlighting increases in net sales and profit.
Review
1 Taking into consideration, full-year operation of new facilities, marginal increase in the sales of the area heating and cooling business, andan increase in the use of water and sewage, net sales decreased only slightly (mainly due to the exemption of rents from air carriers affectedby the COVID-19 pandemic).
2 Operating income was impacted by rental relief and the increase in fuel expenses for the area heating and cooling business (oil price hikeand depreciating yen).
3 Due to the lagging performance of inbound demand and to improve asset efficiency, we planned to sell Kyoto hotels. In spite of the impact
on operating income and the impairment loss recorded as extraordinary loss, we have secured profitability.

■ Dividends

Cash dividends per share

For the fiscal year ended March 2022, we will deliver our committed year-end dividend of 7 yen per
share, at the beginning of the year, and an annual dividend of 14 yen per share. We are expecting thesame for the fiscal year ending March 2023.
Cash dividends per sharefor 2023/3 (forecast)
Keeping strong financial and sustainable growth, we will endeavor tocontinue our dividend policy of consolidated payout ratio of 40% or higher.
We would like to ask for further understanding and support from ourshareholders and investors.
(Consolidated payout ratio:

14 yen53.4 %)(¥)

Q2

Year-end

14

14

14

7

7

7

7

7

7

2021/32022/32023/3(forecast)Fiscal year ended March 31, 2022 AFC REPORT2

■ FY2022 Performance Highlights

Message from the President

Net sales (¥ Million)

Operating income (¥ Million)

24,855

We capitalize on environmental change,to accelerate on enhancement of value creation,
throughout our business.

24,155strategies affecting key resources to support growth andstakeholders for their continuous support. On the economic front,

development."

showing signs of recovery form the impact of COVID-19 pandemic,
has uncertainty by the recent Ukraine conflict.
Under challenging environment, the granting of rental andThis plan places our three businesses at the center of ourpriority measures.
① Haneda Airport 1-Chome project

heating charges relief for our customers, together with the addition

We aim to improve our profitability through the reorganizationof full-year operation of new facilities, partial recovery of waterproject of Haneda Airport 1-Chome area, which is the place of

supply and drainage service usage fee, our group for FY2021, has

AFC’s founding.

realized net sales of ¥23.7 billion, resulting in operating income of② Expansion of non-asset businesses¥3.2 billion and ordinary income of ¥2.9 billion. Taking into consider-

We aim to grow and expand our outside airport real estate andation to further improve our asset efficiency, the plan of sales of ourasset management portfolio.

hotels in Kyoto, under the backdrop of lagging inbound demand,③ Improvement of the profitability of existing businesses

the impairment loss taken, we have attained ¥800 million in

We aim to grow and strengthen occupancy rate and rental

profitability. As there is no direct impact on our revenue base, duerevenue, and restructuring properties.

to the impairment loss undertaken, we are pleased to deliver our

Through such efforts, we aim to create unique value within andcommitted interim dividend of 7 yen per share and an annual

outside airports.

dividend of 14 yen per share.

We would like to ask for the continuous understanding and

On May 13, we have announced our Medium- to Long-Term
Management Plan covering the seven years from FY2022 to FY2028.
We will be implementing our post pandemic strategy, under thebasic policy of "Maximizing and continuous implementation of
1 AIRPORT FACILITIES CO., LTD.

support of our shareholders and investors.

3,831

3,280

（2,460)*2021/32022/3

Ordinary income (¥ Million)
3,802

We would like to express our sincere thanks to shareholders and

4,186(22,784)*

2020/3President and CEO

23,7772020/32022/3

Profit (loss) attributable to owners of parent (¥ Million)
3,617

2,962

2,227

2021/3821△933(2,247)*2020/32021/32022/32020/32021/32022/3For comparative purpose, exemption of rent was not been reported as an extraordinary loss but was deducted from sales in FY2020 - shown in shadein the chart (*). Comparing FY2021 and FY2020 -highlighting increases in net sales and profit.
Review
1 Taking into consideration, full-year operation of new facilities, marginal increase in the sales of the area heating and cooling business, andan increase in the use of water and sewage, net sales decreased only slightly (mainly due to the exemption of rents from air carriers affectedby the COVID-19 pandemic).
2 Operating income was impacted by rental relief and the increase in fuel expenses for the area heating and cooling business (oil price hikeand depreciating yen).
3 Due to the lagging performance of inbound demand and to improve asset efficiency, we planned to sell Kyoto hotels. In spite of the impact
on operating income and the impairment loss recorded as extraordinary loss, we have secured profitability.

■ Dividends

Cash dividends per share

For the fiscal year ended March 2022, we will deliver our committed year-end dividend of 7 yen per
share, at the beginning of the year, and an annual dividend of 14 yen per share. We are expecting thesame for the fiscal year ending March 2023.
Cash dividends per sharefor 2023/3 (forecast)
Keeping strong financial and sustainable growth, we will endeavor tocontinue our dividend policy of consolidated payout ratio of 40% or higher.
We would like to ask for further understanding and support from ourshareholders and investors.
(Consolidated payout ratio:

14 yen53.4 %)(¥)

Q2

Year-end

14

14

14

7

7

7

7

7

7

2021/32022/32023/3(forecast)Fiscal year ended March 31, 2022 AFC REPORT

2

Business Outline
As a business portfolio unique to our company, we areengaged in businesses such as Real Estate Business mainly inairports and regions near the airport, Area Heating andCooling Business that support airport infrastructure, andWater Supply and Drainage Service and Other Businesses.
While we have been deploying business in Tokyo International
Airport and other major airports across Japan as well as airports
abroad, we are also developing business outside airports more
recently to expand our fields of activities.

Real EstateBusiness

Net Sales by Business Segment

8.3%

Real Estate Business

79.3%(22/3)

Area Heating& Cooling Business

12.4%

18.8

¥

Net sales/Operating income (¥ Million)

20,000billion (-0.5%)
Net sales

Operating income

5,000

1,000

21/3

15.9%

Net Sales by Region

Other regional airports

5.1%

Osaka International
Airport(22/3)

Tokyo International
Airport

1.4%

75.7%

Kansai International
Airport1.9%

Leasing of real estate such as multi-purpose generalbuildings, hangars, maintenance plants, apartments, andhotels in airports in Japan and abroad and regions along therailway line connected to the airport● Major companies
Airport Facilities Co., Ltd./AIRPORT FACILITIES ASIA PTE.
LTD./AFS PROPERTIES PTE.LTD.
● Recent investments❶ ARC Building in-flight meal factory/Aircraft sewage
treatment facility/HANEDA INNOVATION CITY/Kanazawa-Hakkei International Community Plaza/ALPINE STYLE
Koshigaya❷ Extension of hangar in Kobe Airport❸ Hangar at Nata Heliport

Map of the facilities of our company
New Chitose

Central Japan Int’l (Centrair)

Canada: Langley
Regional Airport

Aircraft sewage treatment facility

Osaka Int’l (Itami)

Extension of hangar in Kobe Airport

Net sales

Operating income

Net sales (22/3)

1.9¥

Net sales/Operating income (¥ Million)

3,000

Net sales

Operating income

1,000

20/3

21/3

0

22/3

Slight increase in contribution from Tokyo Airport Heating & Cooling Co., Ltd, hasbeen overshadowed by the impact of rental relief/ operation cost increase –electricity and gas, etc.

● Core business

Provision of cooling and heating functions at Tokyo
International Airport (area heating and cooling business)● Major companies
Tokyo Airport Heating & Cooling Co., Ltd.
● Recent investments
Boiler renewal work

Areas covered by our heating and cooling system
in Tokyo International Airport

20/3

21/3

Domestic cargoarea
Runway B
Former aircraft maintenance area
(1-chome district)

22/3

Compared to the previous year, when the airport users decreased, with theincrease of water and sewage usage, and the expansion of local area communication network, we secured increase in net sales and reduction of operating loss.

● Core business

Water supply and drainage business at Tokyo International
Airport and New Chitose Airport, local area communication
networks business at Tokyo International Airport, and solar
power generation business● Major companies
Airport Facilities Co., Ltd.
● Recent investments
Laying cables for local area communication network
Areas covered by our local area communication network
Runway D

Runway D
Runway C

Runway C

Energy Centerbillion (+7.6%)

2,000

0

22/3

Even with full-year contribution from Kanazawa-Hakkei International Community Plaza (completed in March 2021), the dormitory for international students, ournet sales and operating income decreased due to factors such as rental relief
extended to air carriers, etc.

billion (-12.5%)

4,000

2,000

20/3

2.9

Net sales/Operating income (¥ Million)

3,000

Water Supply &Drainage Service
and Other BusinessNet sales (22/3)¥

10,000● Core businessOutside Airport/
Overseas

Area Heating &Cooling Business

15,0000

Water Supply& Drainage Service
and Other BusinessNet sales (22/3)

Domestic passenger
area

Runway A

New aircraft
maintenance
area

International passenger
and cargo area

Water-pipe boiler

Domestic cargoarea
Runway B

Domestic passenger
area

Runway A

Former aircraft maintenance area
(1-chome district)

Water supply & drainage facilities
in the reclaimed land area offshore

New aircraft
maintenance
area

International passenger
and cargo area

Shared Communication Service

Sendai❷Kobe❶Tokyo Int’l Airport, Tokyo
Metropolitan area

Kitakyushu

Singapore: Seletar airport

Kansai Int’l Airport
Hiroshima Heliport❸Fukuoka
KagoshimaNaha

3 AIRPORT FACILITIES CO., LTD.

Fiscal year ended March 31, 2022 AFC REPORT

4

Business Outline
As a business portfolio unique to our company, we areengaged in businesses such as Real Estate Business mainly inairports and regions near the airport, Area Heating andCooling Business that support airport infrastructure, andWater Supply and Drainage Service and Other Businesses.
While we have been deploying business in Tokyo International
Airport and other major airports across Japan as well as airports
abroad, we are also developing business outside airports more
recently to expand our fields of activities.

Real EstateBusiness

Net Sales by Business Segment

8.3%

Real Estate Business

79.3%(22/3)

Area Heating& Cooling Business

12.4%

18.8

¥

Net sales/Operating income (¥ Million)

20,000billion (-0.5%)
Net sales

Operating income

5,000

1,000

21/3

15.9%

Net Sales by Region

Other regional airports

5.1%

Osaka International
Airport(22/3)

Tokyo International
Airport

1.4%

75.7%

Kansai International
Airport1.9%

Leasing of real estate such as multi-purpose generalbuildings, hangars, maintenance plants, apartments, andhotels in airports in Japan and abroad and regions along therailway line connected to the airport● Major companies
Airport Facilities Co., Ltd./AIRPORT FACILITIES ASIA PTE.
LTD./AFS PROPERTIES PTE.LTD.
● Recent investments❶ ARC Building in-flight meal factory/Aircraft sewage
treatment facility/HANEDA INNOVATION CITY/Kanazawa-Hakkei International Community Plaza/ALPINE STYLE
Koshigaya❷ Extension of hangar in Kobe Airport❸ Hangar at Nata Heliport

Map of the facilities of our company
New Chitose

Central Japan Int’l (Centrair)

Canada: Langley
Regional Airport

Aircraft sewage treatment facility

Osaka Int’l (Itami)

Extension of hangar in Kobe Airport

Net sales

Operating income

Net sales (22/3)

1.9¥

Net sales/Operating income (¥ Million)

3,000

Net sales

Operating income

1,000

20/3

21/3

0

22/3

Slight increase in contribution from Tokyo Airport Heating & Cooling Co., Ltd, hasbeen overshadowed by the impact of rental relief/ operation cost increase –electricity and gas, etc.

● Core business

Provision of cooling and heating functions at Tokyo
International Airport (area heating and cooling business)● Major companies
Tokyo Airport Heating & Cooling Co., Ltd.
● Recent investments
Boiler renewal work

Areas covered by our heating and cooling system
in Tokyo International Airport

20/3

21/3

Domestic cargoarea
Runway B
Former aircraft maintenance area
(1-chome district)

22/3

Compared to the previous year, when the airport users decreased, with theincrease of water and sewage usage, and the expansion of local area communication network, we secured increase in net sales and reduction of operating loss.

● Core business

Water supply and drainage business at Tokyo International
Airport and New Chitose Airport, local area communication
networks business at Tokyo International Airport, and solar
power generation business● Major companies
Airport Facilities Co., Ltd.
● Recent investments
Laying cables for local area communication network
Areas covered by our local area communication network
Runway D

Runway D
Runway C

Runway C

Energy Centerbillion (+7.6%)

2,000

0

22/3

Even with full-year contribution from Kanazawa-Hakkei International Community Plaza (completed in March 2021), the dormitory for international students, ournet sales and operating income decreased due to factors such as rental relief
extended to air carriers, etc.

billion (-12.5%)

4,000

2,000

20/3

2.9

Net sales/Operating income (¥ Million)

3,000

Water Supply &Drainage Service
and Other BusinessNet sales (22/3)¥

10,000● Core businessOutside Airport/
Overseas

Area Heating &Cooling Business

15,0000

Water Supply& Drainage Service
and Other BusinessNet sales (22/3)

Domestic passenger
area

Runway A

New aircraft
maintenance
area

International passenger
and cargo area

Water-pipe boiler

Domestic cargoarea
Runway B

Domestic passenger
area

Runway A

Former aircraft maintenance area
(1-chome district)

Water supply & drainage facilities
in the reclaimed land area offshore

New aircraft
maintenance
area

International passenger
and cargo area

Shared Communication Service

Sendai❷Kobe❶Tokyo Int’l Airport, Tokyo
Metropolitan area

Kitakyushu

Singapore: Seletar airport

Kansai Int’l Airport
Hiroshima Heliport❸Fukuoka
KagoshimaNaha

3 AIRPORT FACILITIES CO., LTD.

Fiscal year ended March 31, 2022 AFC REPORT

4

Special Topic

Toward creating unique value within and outside airports
Formulation of the new Medium- to Long-Term Management Plan(from FY2022 to FY2028)

Consolidated numerical targets

Maximizing and continuous implementation of strategies
affecting key resources to support growth and development

Airport-related
businesses

Non-airportand foreign businesses

Priority measure Ⅰ

Priority measure Ⅱ

Priority measure Ⅲ

Haneda Airport
1-Chome project

Expansion of
non-asset businesses

Improvementof the profitability ofexisting businesses

Provision of facilities and services
that meet the needs of customers
and society

5 AIRPORT FACILITIES CO., LTD.

Strengthening ofgovernanceUse of IT

3.3

4.0

times

billion23.7 billion

times

5.0

3.4%

FY2021 Results

1.5

billion0.82 billion%

Consolidated payout ratio target40% or higher■ Business portfolio strategy
The Plan divides the business of our company into five categories, namely "Airport-related real estate business," "Airport-related infrastructurebusiness," "Non-airport business," "Foreign business," and "Restructuring projects." We will pursue profit growth and capital efficiency
improvement through a business strategy placing priority on the company's strengths.
AFC aims to increase and diversify profit, through large-scale investments in Tokyo International Airport, growing progressively in non-asset
and foreign businesses.
Asset mix target

Foreignbusiness

Targets for business profit* growth and business mix

End of FY2028

56%

Airport-related
real estatebusiness

1.1 -foldNon-airport
business

Airport-related

59%

Foreignbusiness
Non-asset
business

Restructuring
projects

Airport-related infrastructurebusiness

Airport-related
infrastructurebusiness

7

Non-airport

Airport-related

3

5

:

1.7-fold

Haneda Airport
1-Chome project:5

Non-asset
business
Non-airport
business

Foreign business
Non-airport
business

Non-airport

Foreign businessincrease

Airport-related
real estatebusinessincrease

Optimization of the business portfolio centering on three priority measures

Further strengthening of the business foundation

32.0

ROA

(Previous target: 30% or higher)

Creation of value

Human resource
and organization
development strategy

times

Profit attributable toowners of parent

Our dividend payout ratio will be raised from 30% to 40% or higher, considering
the right balance of cash and financial resources.

Non-airport
business

Creation of value forstakeholders anda sustainable society

Net sales

Shareholder return policy

End of FY2021

Businesses that support AFC’s growth

Consolidated numerical targets for FY2028

1.3

Our Plan, through to FY2028, aims to achieve record-high
net sales and profitability.

In order to contribute to social development in and outside airports while coping adequately with the environment after the pandemic,
as well as to increase our corporate value, we have formulated the new Medium- to Long-Term Management Plan.
Implementing our long-term strategy, as basis towards formulating our Plan -“AFC VISION” - “Toward creating unique value within
and outside airports". With 50 years of know-how and experience and using Tokyo International Airport as our main hub, AFC throughvalue creation, endeavor to deliver high level customers satisfaction.
We will focus on consistent evolving of policy and strategy with time and the embracing of social responsibility to realize
sustainable long-term growth.
Our company will promote specific actions including the Medium- to Long-Term Management Plan in order to achieve the AFC
VISION.

Basic Policy■ Consolidated numerical targets,shareholder return

Airport-related
infrastructurebusiness

Haneda Airport
1-Chome project
Airport-related
real estatebusiness

Airport-related
real estatebusiness
Restructuring projects

FY2021

FY2028*Business profit = operating income + non-operating income
Fiscal year ended March 31, 2022 AFC REPORT

6

Special Topic

Toward creating unique value within and outside airports
Formulation of the new Medium- to Long-Term Management Plan(from FY2022 to FY2028)

Consolidated numerical targets

Maximizing and continuous implementation of strategies
affecting key resources to support growth and development

Airport-related
businesses

Non-airportand foreign businesses

Priority measure Ⅰ

Priority measure Ⅱ

Priority measure Ⅲ

Haneda Airport
1-Chome project

Expansion of
non-asset businesses

Improvementof the profitability ofexisting businesses

Provision of facilities and services
that meet the needs of customers
and society

5 AIRPORT FACILITIES CO., LTD.

Strengthening ofgovernanceUse of IT

3.3

4.0

times

billion23.7 billion

times

5.0

3.4%

FY2021 Results

1.5

billion0.82 billion%

Consolidated payout ratio target40% or higher■ Business portfolio strategy
The Plan divides the business of our company into five categories, namely "Airport-related real estate business," "Airport-related infrastructurebusiness," "Non-airport business," "Foreign business," and "Restructuring projects." We will pursue profit growth and capital efficiency
improvement through a business strategy placing priority on the company's strengths.
AFC aims to increase and diversify profit, through large-scale investments in Tokyo International Airport, growing progressively in non-asset
and foreign businesses.
Asset mix target

Foreignbusiness

Targets for business profit* growth and business mix

End of FY2028

56%

Airport-related
real estatebusiness

1.1 -foldNon-airport
business

Airport-related

59%

Foreignbusiness
Non-asset
business

Restructuring
projects

Airport-related infrastructurebusiness

Airport-related
infrastructurebusiness

7

Non-airport

Airport-related

3

5

:

1.7-fold

Haneda Airport
1-Chome project:5

Non-asset
business
Non-airport
business

Foreign business
Non-airport
business

Non-airport

Foreign businessincrease

Airport-related
real estatebusinessincrease

Optimization of the business portfolio centering on three priority measures

Further strengthening of the business foundation

32.0

ROA

(Previous target: 30% or higher)

Creation of value

Human resource
and organization
development strategy

times

Profit attributable toowners of parent

Our dividend payout ratio will be raised from 30% to 40% or higher, considering
the right balance of cash and financial resources.

Non-airport
business

Creation of value forstakeholders anda sustainable society

Net sales

Shareholder return policy

End of FY2021

Businesses that support AFC’s growth

Consolidated numerical targets for FY2028

1.3

Our Plan, through to FY2028, aims to achieve record-high
net sales and profitability.

In order to contribute to social development in and outside airports while coping adequately with the environment after the pandemic,
as well as to increase our corporate value, we have formulated the new Medium- to Long-Term Management Plan.
Implementing our long-term strategy, as basis towards formulating our Plan -“AFC VISION” - “Toward creating unique value within
and outside airports". With 50 years of know-how and experience and using Tokyo International Airport as our main hub, AFC throughvalue creation, endeavor to deliver high level customers satisfaction.
We will focus on consistent evolving of policy and strategy with time and the embracing of social responsibility to realize
sustainable long-term growth.
Our company will promote specific actions including the Medium- to Long-Term Management Plan in order to achieve the AFC
VISION.

Basic Policy■ Consolidated numerical targets,shareholder return

Airport-related
infrastructurebusiness

Haneda Airport
1-Chome project
Airport-related
real estatebusiness

Airport-related
real estatebusiness
Restructuring projects

FY2021

FY2028*Business profit = operating income + non-operating income
Fiscal year ended March 31, 2022 AFC REPORT

6

Special Topic Medium- to Long-Term Management Plan

■ Business strategy①Haneda Airport 1-Chome project

Priority Measures

Haneda Airport 1-Chome area refers to the area near Seibijo Stationof the Tokyo Monorail and is the place of AFC’s founding. Clusters ofaviation-related companies, including AFC’s headquarters, havecontributed to the development of the aviation industry.
AFC will contribute to the Haneda Airport 1-Chome project,which reorganizes the company's facilities in accordance with thearea’s disaster risk management measures and provides functions ofbetter quality while maintaining the area’s tradition of aviation.
Consistent improvement of efficiency, through thereorganization and rebuilding of eight existing facilities, will provide
sustainable and stable profitability.
Also, we will contribute to realizing a sustainable society byintroducing better energy usage efficiency in new facilities.
In addition, we will also contribute to the stable operation of Tokyo
International Airport by taking measures against natural disasters.
②Airport-related real estate business
As for the airport-related real estate business, we will acceleratebusiness with the core concepts of "Optimizing profits fromexisting facilities and enhancing customer satisfaction," and"striving to capture new demand."
Optimizing profits from existing facilities
Priority Measuresand enhance customer satisfaction
We will strengthen sales activities in existing facilities and improve
facility maintenance costs. Regarding the domestic cargo terminalof Tokyo International Airport, we will improve the operational
efficiency of the area and terminal functions to realize a smart air
cargo terminal.
For lower yield facilities, restructuring, including closures will be
addressed progressively.
Strive to capture new demand
We will capture demand in the post-COVID-19 era and aim toadvance into airports where AFC currently has no presence byusing and strengthening customers’ networks. In addition, we will
present proposals for leasing and common use of equipment
related to AFC’s facilities, and consider engaging in airport
operation business.
7 AIRPORT FACILITIES CO., LTD.

④Non-airport business
As for the non-airport business, we will aim to develop rental houses for airport-related workers andlogistics facilities. In addition, excellent properties will be accumulated to develop real estate funds.
As for existing facilities, we will reduce cost through efficiency improvement of management andoperation and reorganize owned properties to improve our profitability.

Overall view of Tokyo International Airport

Domestic cargo area

Terminal 1 and 2 areas

Kanazawa-Hakkei International Community Plaza

New aircraft maintenance area

⑤Non-asset businessTerminal 3 area

Haneda1-Chome area
(Redevelopment area)③Airport-related infrastructure business
As for the airport-related infrastructure business providing area
heating and cooling service, local area communication network,
water supply and drainage, SD plant (aircraft sewage treatment
facility), aircraft washing facility, etc., we will further strengthen our
foundation for stable supply through continuous reforms of thecrisis management system and implementation of appropriate
security measures. We will also make active investments in facilities
to reduce the environmental burden and improve efficiency.

Tokyo International Airport SD Plant

Priority Measures

Non-asset business will be promoted with the two pillars of real estate funddevelopment and the expansion of fee business.
Real estate fund development
In addition to the development of real estate funds through the accumulation of
excellent properties in the airport-related real estate business, we will also aim toearn management fees through the establishment of asset management(AM)/property management (PM) subsidiaries while considering the possibilities ofbusiness collaboration and M&As.
Established on May 26th, 2022, AFC Asset Management Co., Ltd. will accelerate
the growth of our non-asset business.
Expansion of fee businessWe will expand construction management (CM) business by taking advantage ofour know-how and customers' networks. Also, we will develop PM and building
management (BM) business and aim to implement business in and outside airports.

⑥Foreign business
By taking advantage of the know-how and networks we have beencultivating, we will finance aviation-related business and make it aprofit foundation of foreignbusiness. Also, we willdevelop a businessfoundation and minimizerisks through collaboration
with reliable partnercompanies, aiming toadvance into businesses
Flight simulator (Singapore)with higher profitability.

Developmentof funds, andinvestment
Profit from“revolving
business”

Self-developed
funds AM/PM
business

Expansion of
non-asset
businesses

Provideoutsourcing
PM/BM services
within and outside
airports

CM businesswithin airports⑦Study on creation of new businesses toward future prosperity
Towards the commercialization of “flying cars,” our company willcontinue the study by strengthening collaboration with relevant
companies and try to create a new business. Our company will also
be engaged in environmental businesses including the creation ofbusinesses that contribute to the reduction of environmental burden
and improve efficiency, and solar power generation business.
The Innovation Promotion Office was established in April 2022
for securing a system to create new businesses. The Office will
promote new businesses. Also, the “AFC Innovation Lab” engagedin activities to start up new businesses based on proposals from
employees will also start.
Fiscal year ended March 31, 2022 AFC REPORT

8

Special Topic Medium- to Long-Term Management Plan

■ Business strategy①Haneda Airport 1-Chome project

Priority Measures

Haneda Airport 1-Chome area refers to the area near Seibijo Stationof the Tokyo Monorail and is the place of AFC’s founding. Clusters ofaviation-related companies, including AFC’s headquarters, havecontributed to the development of the aviation industry.
AFC will contribute to the Haneda Airport 1-Chome project,which reorganizes the company's facilities in accordance with thearea’s disaster risk management measures and provides functions ofbetter quality while maintaining the area’s tradition of aviation.
Consistent improvement of efficiency, through thereorganization and rebuilding of eight existing facilities, will provide
sustainable and stable profitability.
Also, we will contribute to realizing a sustainable society byintroducing better energy usage efficiency in new facilities.
In addition, we will also contribute to the stable operation of Tokyo
International Airport by taking measures against natural disasters.
②Airport-related real estate business
As for the airport-related real estate business, we will acceleratebusiness with the core concepts of "Optimizing profits fromexisting facilities and enhancing customer satisfaction," and"striving to capture new demand."
Optimizing profits from existing facilities
Priority Measuresand enhance customer satisfaction
We will strengthen sales activities in existing facilities and improve
facility maintenance costs. Regarding the domestic cargo terminalof Tokyo International Airport, we will improve the operational
efficiency of the area and terminal functions to realize a smart air
cargo terminal.
For lower yield facilities, restructuring, including closures will be
addressed progressively.
Strive to capture new demand
We will capture demand in the post-COVID-19 era and aim toadvance into airports where AFC currently has no presence byusing and strengthening customers’ networks. In addition, we will
present proposals for leasing and common use of equipment
related to AFC’s facilities, and consider engaging in airport
operation business.
7 AIRPORT FACILITIES CO., LTD.

④Non-airport business
As for the non-airport business, we will aim to develop rental houses for airport-related workers andlogistics facilities. In addition, excellent properties will be accumulated to develop real estate funds.
As for existing facilities, we will reduce cost through efficiency improvement of management andoperation and reorganize owned properties to improve our profitability.

Overall view of Tokyo International Airport

Domestic cargo area

Terminal 1 and 2 areas

Kanazawa-Hakkei International Community Plaza

New aircraft maintenance area

⑤Non-asset businessTerminal 3 area

Haneda1-Chome area
(Redevelopment area)③Airport-related infrastructure business
As for the airport-related infrastructure business providing area
heating and cooling service, local area communication network,
water supply and drainage, SD plant (aircraft sewage treatment
facility), aircraft washing facility, etc., we will further strengthen our
foundation for stable supply through continuous reforms of thecrisis management system and implementation of appropriate
security measures. We will also make active investments in facilities
to reduce the environmental burden and improve efficiency.

Tokyo International Airport SD Plant

Priority Measures

Non-asset business will be promoted with the two pillars of real estate funddevelopment and the expansion of fee business.
Real estate fund development
In addition to the development of real estate funds through the accumulation of
excellent properties in the airport-related real estate business, we will also aim toearn management fees through the establishment of asset management(AM)/property management (PM) subsidiaries while considering the possibilities ofbusiness collaboration and M&As.
Established on May 26th, 2022, AFC Asset Management Co., Ltd. will accelerate
the growth of our non-asset business.
Expansion of fee businessWe will expand construction management (CM) business by taking advantage ofour know-how and customers' networks. Also, we will develop PM and building
management (BM) business and aim to implement business in and outside airports.

⑥Foreign business
By taking advantage of the know-how and networks we have beencultivating, we will finance aviation-related business and make it aprofit foundation of foreignbusiness. Also, we willdevelop a businessfoundation and minimizerisks through collaboration
with reliable partnercompanies, aiming toadvance into businesses
Flight simulator (Singapore)with higher profitability.

Developmentof funds, andinvestment
Profit from“revolving
business”

Self-developed
funds AM/PM
business

Expansion of
non-asset
businesses

Provideoutsourcing
PM/BM services
within and outside
airports

CM businesswithin airports⑦Study on creation of new businesses toward future prosperity
Towards the commercialization of “flying cars,” our company willcontinue the study by strengthening collaboration with relevant
companies and try to create a new business. Our company will also
be engaged in environmental businesses including the creation ofbusinesses that contribute to the reduction of environmental burden
and improve efficiency, and solar power generation business.
The Innovation Promotion Office was established in April 2022
for securing a system to create new businesses. The Office will
promote new businesses. Also, the “AFC Innovation Lab” engagedin activities to start up new businesses based on proposals from
employees will also start.
Fiscal year ended March 31, 2022 AFC REPORT

8

Recent Efforts

Initiatives for ESG■ Establishment of AFC Asset Management Co., Ltd.

■ Efforts towards realizing sustainability

Established on May 26th, 2022, AFC Asset Management Co., Ltd., will be priority in our Medium to long-term Plan, in our “Non-asset business”
outside airports.
The company will be exclusively engaged in businesses such as the expansion of "Revolving business" of real estate outside the airport
and the development of a real estate fund in the future, for the steady promotion of non-asset business. We aim to grow and diversify
revenue sources of the AFC Group through the development and promotion of non-asset business, and will develop a capitalefficiency-conscious business portfolio that is resilient to risks.

We formulated the company's basic policy for sustainability in December 2021
towards achieving the long-term improvement of corporate value and realizing asustainable society. Sustainability Promotion Council meetings have been held
several times from January 2022, discussing mid- to long-term themes anddirections in line with the basic policy and measures such as responses taken
related to the Task Force on Climate-related Financial Disclosures (TCFD).
Further, in the Medium- to Long-Term Management Plan disclosed on May 13,
2022, we have set a goal to reduce CO2 emission in FY2030 by 46% from FY2013, inorder to achieve carbon neutrality by 2050. We will be engaged in reducing
environmental burden based on the latest technological trends by further
deepening our understanding of environmental issues.

■ Acquisition of ALPINE STYLE Koshigaya
We have leased to Alpine News Co., Ltd., a property, in Koshigaya
City, Saitama Prefecture, that we have acquired in October 2021, todiversify our business portfolio and promote non-airport business.
Alpine News Co., Ltd., is a company that specializes incustomized-car service.
Newly established in January 2021, our Business Development
Department, in evaluations of new projects outside airport
business, have opt to invest in Alpine News Co., Ltd, a company thatis seizing the rapidly growing lifestyle customized-car service
market.
We will continuously conduct market research, consider new
projects, and will strive to further expand our non-airport businessby taking advantage of the technical acumen and proposal
expertise cultivated in and outside airports.

■ Conclusion of financing contract
regarding the procurement of aircraft engine
A Singapore-based AFS PROPERTIES PTE. LTD., a subsidiary in
Singapore, has provided financing for aircraft engine leasing
company in Singapore.
We are using Singapore and Canada as our base for oversea
aviation facilities related business. We are looking forward toexpediting growth in our recent venture into financing business.
9 AIRPORT FACILITIES CO., LTD.

Bifuka Amano• Installation of electric vehicle
recharging stations• Upgrading to highly efficient
refrigerating machines▶Please refer to the following URL for the details of the basic policy. https://www.afc.jp/csr/basicpolicy.html■ Holding D&I events
We are promoting Diversity and Inclusion (D&I) in our workplace. Major
efforts include provision of conducive environment to enhance motivationand growth in career opportunities.
As a part of such efforts, in February 2022, we held an event to further
deepen our understanding and recognition in D&I and consider what D&I issuitable for AFC group. The event included a lecture titled "The Promotionof Diversity in a Company" given by an external lecturer, and a panel
discussion by four representative directors of the Company under four
themes: (i) Significance of D&I promotion, (ii) Awareness and action, (iii)Work and career, and (iv) System and operation. Following this event, D&I
training for different job grades was implemented in the same month for
managers and general employees.

With progressive increase in our know-how andexperiences in engine leasing business, we endeavor
to capitalize on the global increase in aviation
demand to actively develop our foreign business.
Foreign Business Department
Foreign Business Division

Examples of efforts to reduce the environmental burden

General Affairs Department
Personnel Division Manager

Yusuke Saito◀ External lecturer: Yoko Yajima,
Executive Officer and Principal
Researcher at Mitsubishi UFJ
Research and Consulting Co., Ltd.

▼ Representative directors in thediscussion: Kenya Inada (left),
Toshiaki Norita (right)

We will continuously engage in offering opportunities for
employees and management to share awareness on the issue
in various ways, creating a workplace environment where
employees can maintain health both physically and mentallyand work in a lively manner, building an organization where
people are highly engaged, and realizing a company that
promotes individual growth, through the promotion of D&I.

Fiscal year ended March 31, 2022 AFC REPORT

10

Recent Efforts

Initiatives for ESG■ Establishment of AFC Asset Management Co., Ltd.

■ Efforts towards realizing sustainability

Established on May 26th, 2022, AFC Asset Management Co., Ltd., will be priority in our Medium to long-term Plan, in our “Non-asset business”
outside airports.
The company will be exclusively engaged in businesses such as the expansion of "Revolving business" of real estate outside the airport
and the development of a real estate fund in the future, for the steady promotion of non-asset business. We aim to grow and diversify
revenue sources of the AFC Group through the development and promotion of non-asset business, and will develop a capitalefficiency-conscious business portfolio that is resilient to risks.

We formulated the company's basic policy for sustainability in December 2021
towards achieving the long-term improvement of corporate value and realizing asustainable society. Sustainability Promotion Council meetings have been held
several times from January 2022, discussing mid- to long-term themes anddirections in line with the basic policy and measures such as responses taken
related to the Task Force on Climate-related Financial Disclosures (TCFD).
Further, in the Medium- to Long-Term Management Plan disclosed on May 13,
2022, we have set a goal to reduce CO2 emission in FY2030 by 46% from FY2013, inorder to achieve carbon neutrality by 2050. We will be engaged in reducing
environmental burden based on the latest technological trends by further
deepening our understanding of environmental issues.

■ Acquisition of ALPINE STYLE Koshigaya
We have leased to Alpine News Co., Ltd., a property, in Koshigaya
City, Saitama Prefecture, that we have acquired in October 2021, todiversify our business portfolio and promote non-airport business.
Alpine News Co., Ltd., is a company that specializes incustomized-car service.
Newly established in January 2021, our Business Development
Department, in evaluations of new projects outside airport
business, have opt to invest in Alpine News Co., Ltd, a company thatis seizing the rapidly growing lifestyle customized-car service
market.
We will continuously conduct market research, consider new
projects, and will strive to further expand our non-airport businessby taking advantage of the technical acumen and proposal
expertise cultivated in and outside airports.

■ Conclusion of financing contract
regarding the procurement of aircraft engine
A Singapore-based AFS PROPERTIES PTE. LTD., a subsidiary in
Singapore, has provided financing for aircraft engine leasing
company in Singapore.
We are using Singapore and Canada as our base for oversea
aviation facilities related business. We are looking forward toexpediting growth in our recent venture into financing business.
9 AIRPORT FACILITIES CO., LTD.

Bifuka Amano• Installation of electric vehicle
recharging stations• Upgrading to highly efficient
refrigerating machines▶Please refer to the following URL for the details of the basic policy. https://www.afc.jp/csr/basicpolicy.html■ Holding D&I events
We are promoting Diversity and Inclusion (D&I) in our workplace. Major
efforts include provision of conducive environment to enhance motivationand growth in career opportunities.
As a part of such efforts, in February 2022, we held an event to further
deepen our understanding and recognition in D&I and consider what D&I issuitable for AFC group. The event included a lecture titled "The Promotionof Diversity in a Company" given by an external lecturer, and a panel
discussion by four representative directors of the Company under four
themes: (i) Significance of D&I promotion, (ii) Awareness and action, (iii)Work and career, and (iv) System and operation. Following this event, D&I
training for different job grades was implemented in the same month for
managers and general employees.

With progressive increase in our know-how andexperiences in engine leasing business, we endeavor
to capitalize on the global increase in aviation
demand to actively develop our foreign business.
Foreign Business Department
Foreign Business Division

Examples of efforts to reduce the environmental burden

General Affairs Department
Personnel Division Manager

Yusuke Saito◀ External lecturer: Yoko Yajima,
Executive Officer and Principal
Researcher at Mitsubishi UFJ
Research and Consulting Co., Ltd.

▼ Representative directors in thediscussion: Kenya Inada (left),
Toshiaki Norita (right)

We will continuously engage in offering opportunities for
employees and management to share awareness on the issue
in various ways, creating a workplace environment where
employees can maintain health both physically and mentallyand work in a lively manner, building an organization where
people are highly engaged, and realizing a company that
promotes individual growth, through the promotion of D&I.

Fiscal year ended March 31, 2022 AFC REPORT

10

Outline of the consolidated financial statements
for the fiscal year ended March 31, 2022

Outlook for FY2022 Performance■ Forecast on the consolidated
performance(¥ Million)❶

24,443
23,7772022/32023/3

3,280

2,962

❷

2,083

Net sales

Operating income

❸

❹

1,597

821

Ordinary income

1,310

Profit attributableto owners of parent■ EBITDA + recovery(¥ Million)<Outlook for FY2022>
Although there will be an increase in expenses for fiscal year ending inMarch 2023, it is expected that, with the recovery of aviation demand,the use of water and sewage will increase. Also, with heightenedemphasis of the Medium- to Long-Term Management Plan, we aim toachieve increases in net sales and operating income.
❶ (Net sales) In addition to the full-year contribution of the new
project of the previous term, with the exemption of rent and heating
charges not being factored in, it is expected that net sales for the
fiscal year ending in March 2023 will increase by 2.8% from theprevious term.
❷(Operating income) With the start of the Haneda Airport 1-Chomeproject, there will be a new burden of depreciation expenses related
to asset retirement obligation. Further, it is expected that fuelexpenses for the area heating and cooling business will increase dueto the impact of the oil price hike and depreciating yen, resulting in a
forecast of a decrease by 36.5% from the previous term.
❸ (Ordinary income) It is expected to decrease by 46.1% from theprevious term due to a decrease in operating income and an increase
in refurbishment construction expenses.
❹ (Profit attributable to owners of parent) Although there is adecrease in ordinary income, it is expected that extraordinary loss will
be reduced, and we expect an increase in profit for two consecutive
years, with an increase by 59.6% from the previous term.

❶ (EBITDA + recovery) For the fiscal year ended March 31, 2022,

7,501

7,835

7,619

❶

7,464

6,737

❷

6,979

■ Outline of Consolidated Balance Sheet(¥ Million)

Total assets

1 Total assets

100,429

102,468

Current assets Current liabilities
10,51822,207
Non-current
liabilities
34,946

Current assets Current liabilities
11,051
24,583
Non-current
2
liabilities
36,110Non-current
assets78,221

Non-current
assets
77,884

19/3

11 AIRPORT FACILITIES CO., LTD.

20/3

21/3

22/3

23/3

(Forecast)

Net assets
54,964As of March 31, 2021

Net assets
55,3063

buildings, with the plan of selling hotels in Kyoto, an amountequivalent to the cost of removal that corresponds with theasset retirement obligation was recorded as a building while
recognizing an impairment loss, resulting in an increase of¥2,038 million.
❷(Liabilities) Although long-term debts decreased, liabilities
increased by ¥1,697 million due to the recording of removal
expenses associated with the Haneda Airport 1-Chomeproject as an asset retirement obligation.
❸(Net assets) Increased by ¥341 million with an increase inretained earnings due to profit attributable to owners ofparent, etc., and dividends of surplus, and the resulting equity
ratio is 51.4% (decrease by 0.7 points).

As of March 31, 2022

■ Outline of Consolidated Cash Flow Statement(¥ Million)

EBITDA + recovery decreased by 2.0% from the previous term, withthe decrease of operating income before depreciation.
❷(EBITDA + recovery) As for the fiscal year ending in March 2023, adecrease by 6.5% from the previous term is expected due to adecrease in operating income before depreciation and a decrease inrecovery from overseas subsidiaries.
Although we expect a decrease in profit for the fiscal year endingin March 2023 in the consolidated financial statement, the major
factor thereof is the recording of asset retirement obligation
associated with the Haneda Airport 1-Chome project, and EBITDA +recovery as a cash flow is showing a stable trend.

❶ Net cash provided by operating activities was ¥8,467

Effect ofexchange ratechange on cash
and cashequivalents❷ Cash flows
from investing
activities

△449

8,467

6,583

18/3

<Financial position as of March 31, 2022>❶(Assets) In addition to the progress of the depreciation ofCash and cash
equivalents
at beginning of
22/3❶ Cash flows
fromoperatingactivities△5,117❸ Cash flows
from financing
activities

128

9,612

❹Cash andcash equivalents
at end of
22/3

million (previous fiscal year: ¥4,758 million provided), mainly
attributable to recording of income before income taxes,
collection of operating loans receivable and recording of
noncash items including depreciation and impairment loss
despite a decrease in consumption taxes payable.
❷ Net cash used in investing activities was ¥449 million(previous fiscal year: ¥2,704 million used), mainly attributableto purchase of non-current assets despite proceeds fromsales of investment securities.
❸ Net cash used in financing activities was ¥5,117 million(previous fiscal year: ¥1,907 million used), mainly attributableto payments of long-term debt and payment of cash
dividends.
❹As a result, cash and cash equivalents as of March 31, 2022
increased ¥3,029 million to ¥9,612 million.

Fiscal year ended March 31, 2022 AFC REPORT

12

Outline of the consolidated financial statements
for the fiscal year ended March 31, 2022

Outlook for FY2022 Performance■ Forecast on the consolidated
performance(¥ Million)❶

24,443
23,7772022/32023/3

3,280

2,962

❷

2,083

Net sales

Operating income

❸

❹

1,597

821

Ordinary income

1,310

Profit attributableto owners of parent■ EBITDA + recovery(¥ Million)<Outlook for FY2022>
Although there will be an increase in expenses for fiscal year ending inMarch 2023, it is expected that, with the recovery of aviation demand,the use of water and sewage will increase. Also, with heightenedemphasis of the Medium- to Long-Term Management Plan, we aim toachieve increases in net sales and operating income.
❶ (Net sales) In addition to the full-year contribution of the new
project of the previous term, with the exemption of rent and heating
charges not being factored in, it is expected that net sales for the
fiscal year ending in March 2023 will increase by 2.8% from theprevious term.
❷(Operating income) With the start of the Haneda Airport 1-Chomeproject, there will be a new burden of depreciation expenses related
to asset retirement obligation. Further, it is expected that fuelexpenses for the area heating and cooling business will increase dueto the impact of the oil price hike and depreciating yen, resulting in a
forecast of a decrease by 36.5% from the previous term.
❸ (Ordinary income) It is expected to decrease by 46.1% from theprevious term due to a decrease in operating income and an increase
in refurbishment construction expenses.
❹ (Profit attributable to owners of parent) Although there is adecrease in ordinary income, it is expected that extraordinary loss will
be reduced, and we expect an increase in profit for two consecutive
years, with an increase by 59.6% from the previous term.

❶ (EBITDA + recovery) For the fiscal year ended March 31, 2022,

7,501

7,835

7,619

❶

7,464

6,737

❷

6,979

■ Outline of Consolidated Balance Sheet(¥ Million)

Total assets

1 Total assets

100,429

102,468

Current assets Current liabilities
10,51822,207
Non-current
liabilities
34,946

Current assets Current liabilities
11,051
24,583
Non-current
2
liabilities
36,110Non-current
assets78,221

Non-current
assets
77,884

19/3

11 AIRPORT FACILITIES CO., LTD.

20/3

21/3

22/3

23/3

(Forecast)

Net assets
54,964As of March 31, 2021

Net assets
55,3063

buildings, with the plan of selling hotels in Kyoto, an amountequivalent to the cost of removal that corresponds with theasset retirement obligation was recorded as a building while
recognizing an impairment loss, resulting in an increase of¥2,038 million.
❷(Liabilities) Although long-term debts decreased, liabilities
increased by ¥1,697 million due to the recording of removal
expenses associated with the Haneda Airport 1-Chomeproject as an asset retirement obligation.
❸(Net assets) Increased by ¥341 million with an increase inretained earnings due to profit attributable to owners ofparent, etc., and dividends of surplus, and the resulting equity
ratio is 51.4% (decrease by 0.7 points).

As of March 31, 2022

■ Outline of Consolidated Cash Flow Statement(¥ Million)

EBITDA + recovery decreased by 2.0% from the previous term, withthe decrease of operating income before depreciation.
❷(EBITDA + recovery) As for the fiscal year ending in March 2023, adecrease by 6.5% from the previous term is expected due to adecrease in operating income before depreciation and a decrease inrecovery from overseas subsidiaries.
Although we expect a decrease in profit for the fiscal year endingin March 2023 in the consolidated financial statement, the major
factor thereof is the recording of asset retirement obligation
associated with the Haneda Airport 1-Chome project, and EBITDA +recovery as a cash flow is showing a stable trend.

❶ Net cash provided by operating activities was ¥8,467

Effect ofexchange ratechange on cash
and cashequivalents❷ Cash flows
from investing
activities

△449

8,467

6,583

18/3

<Financial position as of March 31, 2022>❶(Assets) In addition to the progress of the depreciation ofCash and cash
equivalents
at beginning of
22/3❶ Cash flows
fromoperatingactivities△5,117❸ Cash flows
from financing
activities

128

9,612

❹Cash andcash equivalents
at end of
22/3

million (previous fiscal year: ¥4,758 million provided), mainly
attributable to recording of income before income taxes,
collection of operating loans receivable and recording of
noncash items including depreciation and impairment loss
despite a decrease in consumption taxes payable.
❷ Net cash used in investing activities was ¥449 million(previous fiscal year: ¥2,704 million used), mainly attributableto purchase of non-current assets despite proceeds fromsales of investment securities.
❸ Net cash used in financing activities was ¥5,117 million(previous fiscal year: ¥1,907 million used), mainly attributableto payments of long-term debt and payment of cash
dividends.
❹As a result, cash and cash equivalents as of March 31, 2022
increased ¥3,029 million to ¥9,612 million.

Fiscal year ended March 31, 2022 AFC REPORT

12

Financial Highlights (Five years)
Net sales (¥ Million)
30,000To our shareholders
Operating income (¥ Million)

24,213

22,791

24,855

24,155

4,103

4,000

23,777

4,186

4,129

3,831

■ Notification of shareholder benefits

3,280

To show our appreciation for our shareholders' understanding and support for the business of our company, and to improve theattractiveness of investment, we have introduced a shareholder special benefit plan (discount in the accommodation fee of hotels
owned/rented by our company). We welcome you to stay at hotels we own or rent for your further understanding of the business of ourcompany.

20,0002,000

10,000
0

18/3

19/3

20/3

21/3

3,802

3,617

0

22/3

Ordinary income (¥ Million)
4,000

3,726

3,338

2,962

18/3

20/3

18/3

19/3

20/3

21/3

How to use

3,000

Discount coupons will be issued to shareholders holding 100 shares(1 unit) or more of our company shares, according to the number ofshares held.

Please directly make a call to the hotel for a reservation when using
the discount coupon. Please notify that you are using a discountcoupon issued by the AFC when making a reservation. Present
the coupon at the time of checking in. Your accommodation fee
will not be discounted unless you present the coupon.

2,219

2,227

2,104

13,611

15,000Business investment in plant and equipment

10,000
5,000
0

7,153
4,504

4,033

3,547

18/3

Depreciation expense

54,482

2,569

4,263

1,899

19/3

20/3

21/3

22/3

55,74056,33354,96455,306

120,000

87,961

Reference date

22/3

20/3
21/3

101,384

104,483

100,429

102,468

4,135

19/3

20/3

21/3

22/3

40,000018/3

Equity ratio (%)
80

59.4

52.6

51.5

52.1

51.4

19/3

20/3

21/3

22/3

4.4

4.2

4.0

19/3

20/3

21/3

18/3

19/3

20/3
0.669

0.8

0.443

21/3

22/3

0.663

0.519

0

ROA (%)
0.584

6

18/3

4.9

4

0.4

March 31

Late June

September 30

Late November

From December 1
to the following November 30

There was a market restructuring of the Tokyo Stock Exchange on April 4, 2022, and our company transitioned from the First Section to thePrime Market. AFC will continue to strive to increase its corporate value so that we can fulfill the expectations of our stakeholders. We would
like to ask for your further understanding and support for our business.

■ Facilities observation tour
We are currently preparing for the observation tour of the Tokyo International Airport facilities, a popular event among our shareholders,considering the situation of the COVID-19 pandemic and recent economic and social activities together with relevant parties. Once it isdecided that the tour will be held, the details will be provided via AFC REPORT, etc.
Also, we are planning to give priority to the shareholders who are chosen by ballot to participate in the facilities observation tour that had
been planned in April 2020. Thank you for your kind understanding.

3.4

2

0.2

18/3

19/3

EBITDA + recovery (¥ Million)
8,000

Valid period
From July 1
to the following June 30

20

Debt to equity (Times)

0

Period of issuance■ Transition to the Prime Market of the Tokyo Stock Exchange

40

20,0000.6

19/3

Total assets (¥ Million)

60

40,0000

18/3

80,000

4,011

Net assets (¥ Million)
60,000

821

△933

0

22/3

Business investment in plant and equipment/Depreciation expense (¥ Million)

22/3

Benefit criteria

1,000
0

21/3

Profit (loss) attributable to owners of parent (¥ Million)
2,000

2,000

19/3

6,737

7,501

20/3

21/3

22/3

7,835

7,619

7,464

0

18/3

Annual dividend (¥: left axis) /Payout ratio (consolidated) (%: right axis)
Annual dividend

20

14.00
4,000

10

0

0

18/3

19/3

20/3

21/3

22/3

22/3

14.00

14.00

14.00

Payout ratio

85.1
14.00

32.3
18/3

33.1
19/3

100
50

31.2
20/3

21/3

22/3

0

* Payout ratio: not announced for the fiscal year with bottom-line loss.

13 AIRPORT FACILITIES CO., LTD.

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Fiscal year ended March 31, 2022 AFC REPORT

14

Financial Highlights (Five years)
Net sales (¥ Million)
30,000To our shareholders
Operating income (¥ Million)

24,213

22,791

24,855

24,155

4,103

4,000

23,777

4,186

4,129

3,831

■ Notification of shareholder benefits

3,280

To show our appreciation for our shareholders' understanding and support for the business of our company, and to improve theattractiveness of investment, we have introduced a shareholder special benefit plan (discount in the accommodation fee of hotels
owned/rented by our company). We welcome you to stay at hotels we own or rent for your further understanding of the business of ourcompany.

20,0002,000

10,000
0

18/3

19/3

20/3

21/3

3,802

3,617

0

22/3

Ordinary income (¥ Million)
4,000

3,726

3,338

2,962

18/3

20/3

18/3

19/3

20/3

21/3

How to use

3,000

Discount coupons will be issued to shareholders holding 100 shares(1 unit) or more of our company shares, according to the number ofshares held.

Please directly make a call to the hotel for a reservation when using
the discount coupon. Please notify that you are using a discountcoupon issued by the AFC when making a reservation. Present
the coupon at the time of checking in. Your accommodation fee
will not be discounted unless you present the coupon.

2,219

2,227

2,104

13,611

15,000Business investment in plant and equipment

10,000
5,000
0

7,153
4,504

4,033

3,547

18/3

Depreciation expense

54,482

2,569

4,263

1,899

19/3

20/3

21/3

22/3

55,74056,33354,96455,306

120,000

87,961

Reference date

22/3

20/3
21/3

101,384

104,483

100,429

102,468

4,135

19/3

20/3

21/3

22/3

40,000018/3

Equity ratio (%)
80

59.4

52.6

51.5

52.1

51.4

19/3

20/3

21/3

22/3

4.4

4.2

4.0

19/3

20/3

21/3

18/3

19/3

20/3
0.669

0.8

0.443

21/3

22/3

0.663

0.519

0

ROA (%)
0.584

6

18/3

4.9

4

0.4

March 31

Late June

September 30

Late November

From December 1
to the following November 30

There was a market restructuring of the Tokyo Stock Exchange on April 4, 2022, and our company transitioned from the First Section to thePrime Market. AFC will continue to strive to increase its corporate value so that we can fulfill the expectations of our stakeholders. We would
like to ask for your further understanding and support for our business.

■ Facilities observation tour
We are currently preparing for the observation tour of the Tokyo International Airport facilities, a popular event among our shareholders,considering the situation of the COVID-19 pandemic and recent economic and social activities together with relevant parties. Once it isdecided that the tour will be held, the details will be provided via AFC REPORT, etc.
Also, we are planning to give priority to the shareholders who are chosen by ballot to participate in the facilities observation tour that had
been planned in April 2020. Thank you for your kind understanding.

3.4

2

0.2

18/3

19/3

EBITDA + recovery (¥ Million)
8,000

Valid period
From July 1
to the following June 30

20

Debt to equity (Times)

0

Period of issuance■ Transition to the Prime Market of the Tokyo Stock Exchange

40

20,0000.6

19/3

Total assets (¥ Million)

60

40,0000

18/3

80,000

4,011

Net assets (¥ Million)
60,000

821

△933

0

22/3

Business investment in plant and equipment/Depreciation expense (¥ Million)

22/3

Benefit criteria

1,000
0

21/3

Profit (loss) attributable to owners of parent (¥ Million)
2,000

2,000

19/3

6,737

7,501

20/3

21/3

22/3

7,835

7,619

7,464

0

18/3

Annual dividend (¥: left axis) /Payout ratio (consolidated) (%: right axis)
Annual dividend

20

14.00
4,000

10

0

0

18/3

19/3

20/3

21/3

22/3

22/3

14.00

14.00

14.00

Payout ratio

85.1
14.00

32.3
18/3

33.1
19/3

100
50

31.2
20/3

21/3

22/3

0

* Payout ratio: not announced for the fiscal year with bottom-line loss.

13 AIRPORT FACILITIES CO., LTD.

▶We are offering an email distribution service to provide the latest information of our company.
Please scan the QR code at right to subscribe.
Fiscal year ended March 31, 2022 AFC REPORT

14

Number of Shareholders:

7,549

A
FC
REPOR T

Share Unit Number:

100 sharesFiscal year ended March 31, 2022

■ Corporate Profile (as of March 31, 2022)■ Stock Information (as of March 31, 2022)

Corporate Name: Airport Facilities Co., Ltd. (AFC)Stock Listings:

Established:

February 1970

Capital:¥6,826.10 million yen

Employees:

122 (Consolidated) 116 (Non-consolidated)Tokyo Stock Exchange (TSE)
Prime Market(from April 4, 2022)(Ticker Code: 8864)

Total Number of Shares Authorized: 124,800,000
Total Number of Shares Issued: 52,979,350■ Directors and Corporate Auditors(As of June 29, 2022)

Directors

The Company (Treasury Stock)

Chairman and Executive Officer

Kenya Inada

President and Executive Officer

Toshiaki Norita

0.49%

Executive Vice President

Katsuhiro Yamaguchi

ForeignInvestors

Managing Executive Officer

Keisuke KomatsuManaging Executive Officer

Shigeo Tamura

Managing Executive Officer

Fuminori Tsuboi

External Director

Takehiko Sugiyama

External Director

Kayo Aoyama

External Director

Toshikatsu Ogura

Corporate Auditors
Full-time Statutory Auditor

Kazuhiko Muraishi

Full-time Statutory Auditor

Masaaki Komiya

Statutory Auditor

Akihiko Shiba

Statutory Auditor

Shigeto Kubo

April 1, 2021 March 31, 2022

Composition of Shareholders
Securities Companies

5.73%
Individuals

13.48%

15.15%
Financial
Institutions
Other JapaneseCorporations

43.63%

21.52%

Major Shareholders
Shareholder

Number of Shares Owned(thousands)

Ratio of Shareholding(%)

Japan Airlines Co., Ltd.

10,52121.08

ANA HOLDINGS INC.

10,521

21.08

Development Bank of Japan Inc.

6,920

13.86

The Master Trust Bank ofJapan, Ltd. (Trust Account)

2,549

5.10

MLI FOR CLIENT GENERALOMNI NON COLLATERAL NON TREATY-PB

1,637

3.28

AIRPORT FACILITIES CO., LTD.
(Ticker Code: 8864)