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Reference Materials for Results Briefing
for Fiscal Year Ended in March 2021

May 28, 2021

AFC Group
Airport Facilities Co., Ltd.

Table of contentsI.

Outline of the consolidated financial statements
for fiscal year ended in March 2021

・・・ 2PII.

Forecast on the consolidated performancefor fiscal year ending in March 2022

・・・ 12PIII.

Dividend distribution

・・・ 16P

IV.

Recent topics(1) Engagement in environmental business・・・ 18P(2) Other engagements

・・・ 21P

1AIRPORT FACILITIES CO., LTD.

AIRPORT FACILITIES CO., LTD.

I.

Outline of the consolidated financial statements
for fiscal year ended in March 2021

II.

Forecast on the consolidated performancefor fiscal year ending in March 2022

III.

Dividend distributionIV.

(1) Engagement in environmental business(2) Other engagements
2

AIRPORT FACILITIES CO., LTD.

I. Outline of the consolidated financial statements
for fiscal year ended in March 2021

Consolidated PL for fiscal year
ended in March 2021

◇ Reporting an extraordinary loss due to COVID-19◇ Operating income increased from the outlook
Unit: million yen

Net sales

30,000[Year on year][Compared to outlook]-700 million yen (-2.8%)-1,535 million yen (-5.9%)

24,85525,690Operatingincome24,1553,000

10,0001,50004,500-354 million yen (-8.4%)-129 million yen (-3.2%)

3,831

3,960

0
FY2019 (results) FY2020 (forecast) FY2020 (results)

Ordinaryincome[Compared to outlook]

4,186

4,500

20,000[Year on year][Year on year][Compared to outlook]-184 million yen (-4.8%)+407 million yen (+12.6%)

3,802
3,210

FY2019 (results) FY2020 (forecast) FY2020 (results)

Currentprofit[Year on year][Compared to outlook]-3,161 million yen (―%)

-2,243 million yen (―%)

2,227

3,617
2,000

3,000
1,000
1,500

1,310-933

0-1,000

0

FY2019 (results) FY2020 (forecast) FY2020 (results)

FY2019 (results) FY2020 (forecast) FY2020 (results)* Current profit attributable to owners of parent

3AIRPORT FACILITIES CO., LTD.

I. Outline of the consolidated financial statements
for fiscal year ended in March 2021

Impact of COVID-19 on the Performance ofOur Company in FY2020<Outline> Decrease in sales due to decrease in the use of water in line with the decline in thenumber of airport users
 Exempting some rent and heating charge claims of clients affected by COVID-19, reported
as an extraordinary loss
 Impairment loss of about 3.1 billion yen for properties rented for hotels in Kyoto, recorded
as an extraordinary loss

Decrease in the use ofwater and sewage

Amount of claims
exempted

Recording of theimpairment loss on hotels

Approx. 1 billion yen(Decrease in sales)

Approx. 1.4 billion yen in total(Extraordinary loss)

Approx. 3.1 billion yen(Extraordinary loss)<Impact on the performance of our company>
 Those mentioned above are temporary losses due to the impact of COVID-19, and haveno significant impact on the business profitability or the financial conditions of ourcompany.

4

AIRPORT FACILITIES CO., LTD.

I. Outline of the consolidated financial statements
for fiscal year ended in March 2021

Trend of the business performancefor fiscal year ending in March 2021
Net sales and operating income by quarterfor fiscal year ended in March 2021

1Q

Unit: million yen

2Q

3Q

4Q

Net sales

5,932

6,249

5,954

6,019

Operating income

1,185

1,064

1,118462

Ordinary income

1,182

971

1,079

384

707

265

621

-2,527

Net profit

Reporting anextraordinary loss
due to the exemptionof claims

Reporting an extraordinary loss due to theexemption of claims and impairment loss
for properties rented for hotels in Kyoto

Reporting expenses involved in
the acquisition of a dormitory
for international students◇ Securing net sales against a background of stable fixed income◇ Reporting temporary expenses involved in the acquisition of a dormitory for international
students◇ Reporting an extraordinary loss due to the exemption of claims and impairment loss,
affected by COVID-19

5

AIRPORT FACILITIES CO., LTD.

I. Outline of the consolidated financial statements
for fiscal year ended in March 2021

Real estate businessNet sales

Operating income

Unit: million yen

Unit: million yen

4,000

20,0003,000

15,000+1.1%

10,00018,727-5.3%
18,940

5,000

2,000

3,086

2,922

FY2019 (results)FY2020 (results)

1,00000
FY2019 (results)

FY2020 (results)<Net sales>◇Net sales increased by 1.1% year on year due to the all-year operation ofproperties acquired in FY2019.

<Operating income>◇Operating income decreased by 5.3% year on year due to increase in repair
expenses (promotion of energy saving, etc.), reporting of taxes and other publiccharges involved in the dormitory for international students, etc.

6

AIRPORT FACILITIES CO., LTD.

I. Outline of the consolidated financial statements
for fiscal year ended in March 2021

Real estate business◇

Provision of Kanazawa-Hakkei International Community Plaza(dormitory for international students) started from March 2021
UseStudents' dormitory (3F - 6F)
Commercial tenants' space (1F - 2F)* Tenants include drugstores and clinics

Date ofconstruction March 1, 2021
completion
Area
Providedto•••

Total floor area: 9,582 m2
Kanto Gakuin University, each commercial tenant

External appearance

Provision of a dormitory for students, which is the first casefor our company
Our company rented the vacant land owned by Kanto
Gakuin and constructed a student dormitory.
Service started from March 2021, and is expected tocontribute to our business performance in FY2021 andthereafter.
Interior (lounge area)

7

AIRPORT FACILITIES CO., LTD.

I. Outline of the consolidated financial statements
for fiscal year ended in March 2021

Area heating andcooling businessNet sales

Operating income
Unit: million yen

Unit: million yen

4,500

1,500

3,000

1,000

+3.2%

+29.3%

3,274

3,379

FY2019 (results)

FY2020 (results)

1,500500849

1,09700

FY2019 (results)

FY2020 (results)<Net sales>◇

While there was a decrease in demand due to the spread of COVID-19 infection,
there were also an increase in supply destinations with the partial enlargement ofTerminal 2 of Haneda Airport, and net sales increased by 3.2% from the previousyear.

<Operating income>◇ Due to a decrease in expenses, including fuel (electricity/gas) and repair
expenses, operating income increased by 29.3% year on year.

8AIRPORT FACILITIES CO., LTD.

I. Outline of the consolidated financial statements
for fiscal year ended in March 2021

Water supply and drainage
business and other businesses
Net sales

Operating income

Unit: million yen

Unit: million yen

3,000300
2,250150

1,500

2,853-35.7%

25001,834750-188-1500-300
FY2019 (results)

FY2020 (results)

FY2019 (results)

FY2020 (results)<Net sales>◇ Net sales decreased by 35.7% year on year due to significant decrease in the useof water in line with a decline in the number of airport users due to the spread ofCOVID-19 infection.
<Operating income>◇ Due to significant decrease in net sales, operating income decreased by 430
million yen.
* Other businesses: local area communication network businessand photovoltaic power generation business are implemented

9AIRPORT FACILITIES CO., LTD.

I. Outline of the consolidated financial statements
for fiscal year ended in March 2021

Financial conditions [Consolidated balance sheet]
End of March 2020

End of March 2021
Unit: million yen

Unit: million yen
Current assets

Current liabilities

Current liabilities
Current assets
Non-current liabilities

Non-current liabilities

Total assets
Decreased by4,054 million yen

Non-current assets

Non-current assets
Net assets

Net assets

Amount of total assets

104.4 billion yen

Amount of total assets

100.4 billion yen

Net assets per share

1,080 yen

Net assets per share

1,049 yen

Equity ratio

Equity ratio

51.5%

52.1%

(Assets)

Increase in line with the acquisition of Kanazawa-Hakkei International Community Plaza, decrease withimpairment loss for hotels in Kyoto(Liabilities) Decrease in accrued expenses in line with decrease in long-term debts and the payment of annual use
fee for national government assets(Net assets) Decrease due to current loss attributable to owners of parent, etc.

10AIRPORT FACILITIES CO., LTD.

I. Outline of the consolidated financial statements
for fiscal year ended in March 2021

Financial condition[Consolidated cash flow]
Unit: million yen

Financial
cash flow

Translation
adjustmentof cash, etc.

-2,704
Operatingcash flow

Investingcash flow-1,907

Cash and cash
equivalents as of theend of March 2020

-81

Cash and cash
equivalents as of theend of March 2021

Cash flows from operating activities

Comprised mainly of profits from operating activities, from which the acquisition oflease receivables and the payment of corporation tax are deducted, and thereversal of depreciation expenses/impairment loss and income due to thecollection of business loans added

Cash flows from investing activities

Mainly expenses in line with the acquisition of non-current assets such as thenew construction of Kanazawa-Hakkei International Community Plaza

Cash flows from financing activities

Mainly expenses associated with the repayment of debts and the payment ofdividends

11

AIRPORT FACILITIES CO., LTD.

AIRPORT FACILITIES CO., LTD.

I.

Outline of the consolidated financial statements
for fiscal year ended in March 2021

II.

Forecast on the consolidated performancefor fiscal year ending in March 2022

III.

Dividend distributionIV.

(1) Engagement in environmental business(2) Other engagements

12

AIRPORT FACILITIES CO., LTD.

II. Forecast on the consolidated performancefor fiscal year ending in March 2022

Consolidated PL◇◇

Stable sales are expected for real estate business and area heating
and cooling business throughout the year
Gradual recovery of aviation demand is expected in line with theprogress of vaccination

Net sales

Unit: million yen

Operatingincome[Year on year][Year on year]+107 million yen (+0.4%)

30,00024,855

24,155-482 million yen (-12.5%)

24,262

4,186

4,500

20,0003,000

10,0001,50003,3490FY2019 (results)

Ordinaryincome

FY2020 (results) FY2021 (forecast)

FY2019 (results)

3,802[Year on year]+2,543 million yen (—%)

2,227

3,617

1,610

2,000

2,633

3,000

FY2020 (results) FY2021 (forecast)

Current
profit[Year on year]-984 million yen (-27.2%)

4,500

3,831

1,000-933

1,500-1,0000
FY2019 (results)

FY2020 (results)

FY2019 (results)

FY2021 (forecast)

FY2020 (results) FY2021 (forecast)* Current profit attributable to owners of parent

13

AIRPORT FACILITIES CO., LTD.

II. Forecast on the consolidated performancefor fiscal year ending in March 2022
：Net sales (bar graph, left axis)

By business segment

Unit: million yen：Operating income (line graph, right axis)
Real estate business

Area heating andcooling business

Water supply and drainage
business and other businesses

Year on year
(Net sales) +175 million yen (+0.9%)(Operating income) -198 million yen (-6.7%)

Year on year
(Net sales) -249 million yen (-7.3%)(Operating income) -411 million yen (-37.4%)

Year on year
(Net sales) +183 million yen (+9.9%)(Operating income) +127 million yen (－%)

20,00015,00010,00018,727 18,940 19,115

4,000

3,274

3,379

3,130

1,500 3,000

2,853

3,000
2,000

1,000 2,000

250

3,000
3,086

2,922

2,724

2,000
1,000

5,000
00
FY2019 FY2020 FY2021(results) (results) (forecast)

1,097
849
686

1,000

500

400
1,834

2,017
100-611,000-200-18800
FY2019(results)

FY2020 FY2021(results) (forecast)

0-500
FY2019(results)

FY2020 FY2021(results) (forecast)<Major factors for increase/decrease>[Net sales]
・Effect of increase in income by the full-year operation of
the dormitory for international students[Net sales]
・Demand is expected to be generally at the same level as
the previous year

[Net sales]
・Gradual recovery from the decrease in sales of watersupply and drainage due to the impact of COVID-19
is expected[Operating income]【営業利益】
・Operating income decreased partly due to increases in
・売上増の効果により増加
selling, general and administrative expenses (includingresearch expenses and personnel expenses)[Operating income]・Operating income decreased due to increase in cost ofsales (raw material expenses/repair expenses)[Operating income]・Decrease in loss according to increase in net sales

14

AIRPORT FACILITIES CO., LTD.

II. Forecast on the consolidated performance
７ for fiscal year ending in March 2022

Establishment of the Medium-termManagement Plan and a long-term vision<Medium-term Management Plan>• The Medium-term Management Plan starting from FY2022 will beestablished to show specific plans for about three years from now on.

<Long-term vision>• A long-term vision showing further growth after the COVID-19 pandemic
will be established.

By showing our medium- and long-term visions, we will work for our investors tounderstand our mindset of trying to secure sustainable growth.
1515

AIRPORT FACILITIES CO., LTD.

AIRPORT FACILITIES CO., LTD.

I.

Outline of the consolidated financial statements
for fiscal year ended in March 2021

II

Forecast on the consolidated performancefor fiscal year ending in March 2022

III.

Dividend distributionIV.

(1) Engagement in environmental business(2) Other engagements16

AIRPORT FACILITIES CO., LTD.

III. Dividend distribution

Annual dividend
Fiscal year ending in March 2021
Annual dividend per share

Fiscal year ending in March 2022
Annual dividend per share

14 yen (forecast)

14 yen (forecast)Year-end dividend:
7 yen (forecast)Interim dividend 7 yen+ year-end dividend 7 yen

Changes in annual dividends

Offering stable andsustainable dividend

20
14

1312

14

100.0%
1414

10
32.0%

31.2%

32.3%

33.1%

1443.4%31.2%

050.0%

0.0%
FY2015FY2016FY2017

Annual dividend

FY2018FY2019FY2020 (forecast)

FY2021 (forecast)

Payout ratio (consolidated)

・Our company places importance on the return of profits to our shareholders, and is planning to maintainan annual dividend of 14 yen per share for both FY2020 and FY2021, comprehensively considering thefinancial conditions.

17

AIRPORT FACILITIES CO., LTD.

AIRPORT FACILITIES CO., LTD.

I.

Outline of the consolidated financial statements
for fiscal year ended in March 2021

II.

Forecast on the consolidated performancefor fiscal year ending in March 2022

III.

Dividend distributionIV.

(1) Engagement in environmental business(2) Other engagements
18

AIRPORT FACILITIES CO., LTD.

IV. (1) Engagement in environmental business７

Our company's efforts in reducing the emission of CO₂(photovoltaic power generation business)[Projects utilizing the FIT system] * Results for FY2020
Completion ofconstruction andstart of operation

Name of the facility

Location ofinstallation

Annual powergeneration

2013

10

Honsanrizuka Solar Power Plant

Narita City,Chiba Prefecture

Approx. 690,000 kwh

2014

3

Kagoshima Airport
No.1/No.2 hangar and warehouse (rooftop)

Kagoshima Airport

Approx. 360,000 kwh2016

1

Gifu Mizunami Solar Power Plant

Mizunami City,
Gifu Prefecture

Approx. 1,400,000 kwh

2018

1

TRC Distribution B Building
Rooftop Solar Power Plant

Heiwajima, Ota-ku

Approx. 2,500,000 kwh

Name of the facility

Location of
installation

Annual power
generation

Haneda Airport
Domestic cargo terminal (rooftop)

Haneda Airport

Approx. 1,200,000 kwh[Recent topics]
Haneda Airport domestic cargo terminal[Project for self-consumption] * When in full-year operation
Completion of
construction andstart of operation
2020

12

Name ofthe facility

E-4 Building

W-1 Building

Annual power
872,000 kwh
generation

323,000 kwh

Installed area

[TRC Distribution B Building
Rooftop Solar Power Plant][Solar panel on the rooftopof Kagoshima Hangar][Gifu Mizunami Solar Power Plant]

19

Air cargo terminal facilities

4,672 m2

1,723 m2

Start ofoperation

December 2020

Financing

Green bond (privateplacement bond) is issued tocover a part of investment

Other

Receiving subsidies from theTokyo Metropolitan
Government

AIRPORT FACILITIES CO., LTD.

IV. (1) Engagement in environmental business

７

Establishment of the Environmental Business
Promotion Project Team•Our company organized an in-house cross-sectoral project team to actively work withenvironmental business regarding SDG efforts.
Name ofthe working group

PurposeActivities

Environmental Initiatives
Management WG

Setting CO₂ reduction goal

Environmental Business(Eco-Airport)
Promotion WG

Promotion of environmental business(eco-airport)

Biomass Power Generation Promotion of biomass power
Promotion WG
generation

New Technology WG

Consider specific measures for reduction and theeffects of reduction, and set a plan for reduction (goal,schedule, etc.)
Consider and promote initiatives towards the future,mainly regarding renewable energy business including
photovoltaic power generation projects that are alreadybeing promoted.
Biomass power generation will be considered as ourpotential projects for the future

Consideration of new business
utilizing new technologies

Initiatives utilizing new technologies including hydrogenand fuel cells will be considered

Civil Aviation Bureau of the Ministry of Land, Infrastructure, Transport and Tourism
launched a committee on CO2 reduction in the airport sector to achieve the goal of
realizing a carbon-neutral and decarbonized society by 2050.
Our company is participating in the committee as an observer.

20

AIRPORT FACILITIES CO., LTD.

AIRPORT FACILITIES CO., LTD.

I.

Outline of the consolidated financial statements
for fiscal year ended in March 2021

II.

Forecast on the consolidated performancefor fiscal year ending in March 2022

III.

Dividend distributionIV.

(1) Engagement in environmental business(2) Other engagements
21

AIRPORT FACILITIES CO., LTD.

IV. (2) Other engagements

７

Renewal of English website
Full renewal of the English website of the company
The English website contains an equivalent amount of information
to the Japanese website. We recommend the website for English
speakers.

https://www.afc.jp/english/
Introduction of English email distribution service tosubscribers
We introduced a service to distribute emails in English so that theinformation of our company becomes available also to investors
overseas
Registration for English email distribution service

https://www.afc.jp/english/ir/mailmag.html
Registration for Japanese email distribution service

https://www.afc.jp/ir/mailmag.html

Front page

We aim to further improve our corporate value by providing the information of thecompany also to people overseas.
2222

AIRPORT FACILITIES CO., LTD.

Disclaimer
Please note■This reference material is not for soliciting investments.
■Descriptions regarding future forecasts are based on information currently available,
and the results may turn out differently depending on changes in the businessenvironment, etc.

■Investors are recommended to make important decisions at their own discretion.
This reference material is also available on our company website.
https://www.afc.jp/

Inquiries:
Investor Relations Office,Airport Facilities Co., Ltd.
TEL： 03-3747-0953

FAX： 03-3747-0258

E-MAIL ： afc_ir@afc.jp
AIRPORT FACILITIES CO., LTD.