May 12, 2016

Financial Results for the Year Ended March 31, 2016 [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-group.jp
Representative: Hiroshi Maruyama, President and CEO
Inquiries: Kazuhiko Muraishi, Director, Senior Corporate Officer, General Manager of Accounting Dept.
The date of the ordinary general shareholders’ meeting:June 29, 2016
The date of the dividend payment start:
June 30, 2016
The date of filing the securities report:
June 29, 2016
Preparation of earnings presentation material:
Yes
Holding of earnings announcement:
Yes (for analysts)

TEL: +81-3-3747-0251(Figures are rounded off to the nearest million yen.)

1. Consolidated Financial Results for the Year Ended March 2016 (April 1, 2015 - March 31, 2016)(1) Consolidated Business Results(Percentages are changes from the same period of the previous year.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Fiscal year ended

Millions of yen

March 31, 2016
March 31, 2015

% Millions of yen

20,697
21,111(2.0)
0.7(Note) Comprehensive income:% Millions of yen

2,944
3,166

(7.0)
(9.5)

Fiscal year ended March 31, 2016:
Fiscal year ended March 31, 2015:

Net income
per share
Fiscal year ended

March 31, 2016
March 31, 2015

Diluted net income
per share% Millions of yen

3,173
3,164

0.3
2.4

1,558 million yen
3,378 million yen

%

1,935
1,505

28.6
37.8

((53.9%))(107.1%)

Ordinary income toOperating margin
total assets

Return on equity

Yen

Yen

%

%

%

37.46
29.14

37.43
―

3.9
3.1

3.7
3.9

14.2
15.0

(Reference) Equity in earnings of affiliates:－ million yen－ million yen

Fiscal year ended March 31, 2016:
Fiscal year ended March 31, 2015:(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

85,21484,27051,64450,715

58.5
58.3

965.69951.16

As of March 31, 2016
As of March 31, 2015
(Reference) Equity capital:

Net assets

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

As of March 31, 2015: 49,138 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

6,374
3,478

(8,018)(4,772)

1,731
4,500

5,974
5,891

March 31, 2016
March 31, 2015
2. Dividends

Total
dividends(annual)Dividends per share

Q1

Q2

Q3

Q4

AnnualPayout ratio(consolidated)

Dividends to
net assets(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

March 31, 2015
March 31, 2016

―
―

6.00
6.00

―
―

6.00
6.00

12.00
12.00

620
619

41.2
32.0

1.2
1.2

―

6.00

―

6.00

12.00

Fiscal year ending

March 31, 2017
(Forecasts)

29.2

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

Operating income

Profit attributable toowners of parent

Ordinary income

Basic earnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

10,85021,630

5.0
4.5

1,680
3,490

7.2
18.5

1,610
3,290

4.7
3.7

1,040
2,130

17.5
10.1

20.13
41.23

- 1 -

＊ Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting from changes in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
1) Changes in accounting policies with revision of accounting standards, etc. : Yes
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, 2016:
54,903,750 shares As of March 31, 2015:
54,903,750 shares(including treasury stock)2) Number of treasury stock
As of March 31, 2016:
3,242,974 shares As of March 31, 2015:
3,242,446 shares
3) Average number of shares during Year ended March 31,
Year ended March 31,
51,660,953 shares
51,661,583 sharesthe period
2016:
2015:

(Reference) Summary of Non-consolidated Results
1. Non-consolidated Financial Results for the Year Ended March 2016 (April 1, 2015 - March 31, 2016)(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, 2016
March 31, 2015

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

17,813
18,349

(2.9)
0.3

2,005
2,507

(20.0)(12.4)

2,489
2,723

(8.6)
1.5

1,679
1,424

17.9
46.7

Net income per
share
Fiscal year ended

March 31, 2016
March 31, 2015

Diluted net income
per share

Yen

Yen

32.50
27.56

32.47
－

(2) Non-consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

75,24976,59848,74948,14664.7
62.9

943.07931.95

As of March 31, 2016
As of March 31, 2015
(Reference) Equity capital

Net assets

As of March 31, 2016: 48,719 million yen

As of March 31, 2015: 48,146 million yen

2. Forecast of Non-consolidated Earnings for the Year Ending March 2017 (April 1, 2016 – March 31, 2017)(Percentages are changes from the same period of the previous year.)Net salesFirst half
Full fiscal year

Ordinary income

Net income pershare

Net income

Millions of yen%

Millions of yen%

Millions of yen

%

Yen

9,150
18,520

3.0
4.0

1,320
2,590

12.6
4.1

920
1,810

19.1
7.8

17.81
35.04

＊ Implementation status of audit procedures
The audit procedures stipulated in the Financial Instruments and Exchange Act are not applicable to this Financial Results report, and theprocedures have not been completed when this Financial Results report was disclosed.

＊ 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. Actual earnings may differ greatly from the above forecasts for various reasons. For the assumptions forearnings forecasts and cautions regarding the use of the earnings forecasts, please refer to page 3 “1. Analysis of Business Results and Financial
Position (1) Analysis of Business Results”.

- 2 -1. Analysis of Business Results and Financial Position(1) Analysis of Business Results
During the year ended March 31, 2016, the Japanese economy continued to show a gradual recovery with continued
improvement of income and employment environment as a result of various government policies such as enhanced
monetary easing by the Bank of Japan. However, both domestic and global economy remained stagnant in the second half
due to an economic downturn in Asian emerging countries including China and resource-rich countries.
In the aviation industry, performance showed a favorable growth in general due to a lower fuel cost because of acontinuing decline in the crude oil price and the resulting removal of fuel surcharges in March 2016 for the first time in six
years, and especially in international flights due to a significant increase in foreign passengers visiting Japan.
The current market environment has been tough for both international and domestic flights due to factors including
further business expansion by LCCs and a competition with Shinkansen. In order to survive such tough environment,
airline companies are working on expansion of route network as well as further cost reduction by measures such asincreasing advanced flight equipment with high fuel consumption efficiency and consolidating facilities.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of¥20,697 million (down 2.0 % from the previous fiscal year), operating income of ¥ 2,944 million (down 7.0 %) andordinary income of ¥ 3,173 million (down 0.3 %) and profit attributable to owners of parent of ¥ 1,935 million (down28.6 %), partly due to the effect of the move-out from certain facilities by major airline companies.
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥ 15,311 million (down 1.6% from the previous fiscal year), as a result of
the move-out from the facilities by and rent reduction for major airline companies in Tokyo International Airport in
the previous year, despite additions of a simulator facility at Tokyo International Airport and two properties includinga small hangar and an engine maintenance shop by a consolidated subsidiary in Singapore. Operating income was¥2,021 million (down 13.8%).
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business recorded net sales of ¥3,166 million (down 0.8% from the previous fiscal year), as
our service in the 1-chome District of Tokyo International Airport was terminated at the end of May 2014, despite asteady growth of sales from cooling service in the reclaimed land area offshore Tokyo International Airport byTokyo Airport Heating & Cooling Co., Ltd., a consolidated subsidiary. Operating income was ¥830 million (up37.2%) due to decreased rates of electricity and gas.
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥2,219 million (down 5.6% from theprevious fiscal year) as a result of a decrease in the number of shared telecommunication lines due to partial
cancellation, despite a steady growth in the sales of water supply due to an increase in the number of passengers ofinternational flights at Tokyo International Airport. Operating income was ¥92 million (down 57.0 %) due to anincrease in depreciation expense associated with renewal of PBX, equipment for shared telecommunication network.
Forecast for the fiscal year ending March 31, 2017
With factors including the operation of Haneda Asahi Cho Hotel and Maison Haneda and the business expansion
in the overseas subsidiary, our forecast for the fiscal year ending March 31, 2017 is net sales of ¥21,630 million (up4.5% from the previous fiscal year), operating income of ¥3,490 million (up 18.5%), and ordinary income of ¥3,290
million (up 3.7%), and profit attributable to owners of parent of ¥2,130 million (up 10.1%).

- 3 -(2) Analysis of Financial Position(i) Assets, liabilities and net assets
Total assets as of March 31, 2016 amounted to ¥85,214 million, an increase by ¥944 million (1.1%) comparedto March 31, 2015 as a result of new investments in a consolidated subsidiary in Singapore as well as in hotelbusiness and solar power generation business in Japan.
Liabilities slightly increased by ¥15 million (0.0%) to ¥33,570 million, mainly due to an increase in long-term loans
payable and guarantee deposits received compared to March 31, 2015.
Net assets increased by ¥929 million (1.8%) compared to March 31, 2015 to ¥51,644 million mainly due to anincrease in retained earnings.
As a result, equity ratio as of March 31, 2016 increased by 0.2 points to 58.5% compared to March 31, 2015.
(ii) Cash Flows
Cash and cash equivalents (“cash”) as of March 31, 2016 amounted to ¥5,974 million, an increase of ¥83 million(1.4%) from March 31, 2015. Cash flows from each activity for the year ended March 31, 2016 and their significant
factors are as follows:(Cash flows from operating activities)
Net cash provided by operating activities was ¥6,374 million (previous fiscal year: ¥ 3,478 million), attributable
to income before income taxes of ¥3,278 million adjusted with non-cash items such as depreciation andamortization, and operating receivables and payables.
(Cash flows from investing activities)
Net cash used in investing activities was ¥8,018 million (previous fiscal year: ¥4,771 million used), mainly
attributable to an operating loans associated with investments by an overseas subsidiary and purchase ofnoncurrent assets.
(Cash flows from financing activities)
Net cash provided by financing activities was ¥1,731 million (previous fiscal year: ¥4,500 million provided). This
increase is mainly attributable to new borrowings for the purpose of funding Group’s capital investments andoverseas subsidiarys’ business expansion.

- 4 -(Reference) Cash Flow Indicators
FY2014/3

FY2015/3

FY2016/3

Equity ratio (%)

59.9

58.3

58.5

Equity ratio at market value (%)

50.7

43.9

32.8

Debt repayment period (years)

4.3

6.6

3.8

Interest coverage ratio (times)

16.1

11.4

19.8

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(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.

(3) Basic Policy Regarding Distribution of Earnings and Dividends for the Year Ended March 31, 2016 and the YearEnding March 31, 2017
The Real Estate Business, the Company’s primary business, requires large amounts of funds for construction and purchaseof facilities. Also business planning based on a long-term point of view, such as coordinating with the airport project of thegovernment, is essential in our business operation. Accordingly, we must plan distribution of earnings taking into
consideration maintenance of management base and enhancement of financial strength.
As for internal reserves, we intend to use it for capital investment aimed at future business development andimprovement of business performance.
Our dividend policy is to stably return profits to shareholders based on the comprehensive consideration over the current
and future performance. Based on the above policy, the dividend for the year ended March 31, 2016 is expected to be ¥12
per share (including interim dividend of ¥6 per share). The dividend for the year ending March 31, 2017 is also expected tobe ¥12 per share (including interim dividend of ¥6 per share).

- 5 -2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)
FY3/15(As of March 31, 2015)

FY3/16(As of March 31, 2016)

AssetsCurrent assets
Cash and deposits

2,891,402

4,974,638

Notes and accounts receivable-trade

1,133,796

1,006,211

Securities

3,000,000

1,000,000

Lease receivables and investment assets

3,429,585

3,874,634－

5,392,481

Operating loans
Raw materials and supplies

23,395

13,083

Deferred tax assets

306,501

165,175

Others211,950

141,027

10,996,629

16,567,252

151,893,840

152,471,802(104,553,047)(107,361,515)

Buildings and structures, net

47,340,793

45,110,286

Machinery, equipment and vehicles

16,395,378

16,746,614(11,518,257)(11,693,470)

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss

Accumulated depreciation

4,877,121

5,053,144

Tools, furniture and fixtures

239,676

257,079

Accumulated depreciation(209,626)(218,169)

30,05038,9109,544,939

9,592,528

177,653

1,562,242

61,970,556

61,357,112

41,19625,064

6,764,238

5,976,316

4,167

3,429

Deferred tax assets

323,237

468,895

Net defined benefit asset

180,682

198,997

Others4,105,469

652,251

Allowance for doubtful accounts(115,948)(34,567)

Total investments and other assets

11,261,845

7,265,322

Total noncurrent assets

73,273,597

68,647,500

84,270,226

85,214,753

Machinery, equipment and vehicles, net

Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable

Total assets- 6 -(Thousands of yen)
FY3/15(As of March 31, 2015)

FY3/16(As of March 31, 2016)

Liabilities
Current liabilities
998,571

1,114,793

Short-term loans payable

5,290,218

4,379,428

Accounts payable

1,617,997

519,280

Income taxes payable

595,161

488,020

Accrued expenses

801,135

269,075

Unearned revenue

756,115

948,317

Provision for bonuses

121,481

131,496

Notes and accounts payable-trade

Provision for directors’ bonuses

25,79625,880

Provision for removal cost of property, plant and equipment

490,991

223,321

Others811,819

363,151

11,509,284

8,462,765

Long-term loans payable

16,820,248

19,621,404

Long-term guarantee deposited

4,809,516

5,083,361

Long-term accounts payable

205,412394,749

Net defined benefit liability

3,146

5,370

207,132

2,436

22,045,454

25,107,322

33,554,738

33,570,088

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,920

6,982,920

Retained earnings

34,103,121

35,418,621

Treasury stock(1,562,347)(1,562,688)

Total shareholders’ equity

46,349,795

47,664,953

2,718,548

2,234,058

69,583(10,292)

2,788,131

2,223,766－

29,359Non-controlling interests

1,577,562

1,726,586

Total net assets

50,715,488

51,644,665

84,270,226

85,214,753

Total current liabilities
Noncurrent liabilities

Provision for directors’ retirement benefits
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares

Total liabilities and net assets- 7 -(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Thousands of yen)
FY3/15(April 1, 2014 –March 31, 2015)

FY3/16(April 1, 2015 –March 31, 2016)

Net sales
Cost of sales

21,111,344
16,249,240

20,697,667
16,073,629

Gross profit
Selling, general, and administrative expenses
Directors’ compensations
Salaries and bonuses
Provision for bonuses
Provision for directors’ bonuses
Transportation and communication expenses
Depreciation
Taxes and dues
Others

4,862,104

4,624,037

253,173505,279
76,76825,79699,912
32,23270,353632,913268,263494,208
80,321
25,88098,635
18,233
94,646599,640

Total selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Commission fee
Gain on investments in silent partnership
Foreign exchange gains
Others

1,696,426
3,165,678

1,679,828
2,944,208

374
334,803
104,935
101,875－
121,159207
121,063442,465

Total non-operating income
Non-operating expenses
Interest expenses
Removal cost of property, plant and equipment
Provision for removal cost
Depreciation
Others663,146694,932

295,72078,014273,366－
17,554319,291
62,695
9,515
72,988
1,332

Total non-operating expenses
Ordinary income
Extraordinary income
Compensation for remaining book value
Gain on sales of noncurrent assets
Others664,654
3,164,170

465,823
3,173,316

4,160
39,873263－
125,009

Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Loss on sales of non-current assets
Others44,296320,366－
2

Total extraordinary loss
Income before income taxes
Income taxes
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

320,368
2,888,099
889,345376,740
1,266,085
1,622,013
116,735
1,505,278

- 8 -

－
1,043
130,151－
125,009
7,516
12,609－20,125
3,278,200
846,312309,100
1,155,412
2,122,787
187,353
1,935,434

(Consolidated statements of comprehensive income)(Thousands of yen)
FY3/15(April 1, 2014 –March 31, 2015)

FY3/16(April 1, 2015 –March 31, 2016)

1,622,013

2,122,787

1,685,987(484,489)

69,583(79,875)

1,755,570(564,365)

3,377,583

1,558,422

3,260,848

1,371,069

116,735

187,353

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controllinginterests- 9 -(3) Consolidated Statements of Changes in Net Assets
For the Year ended March 31, 2015 (April 1, 2014 to March 31, 2015)(Thousands of yen)

Shareholders’ equity

Capital stock

Balance at the beginning of current period

Capital surplus

6,826,100

6,982,920

Retainedearnings

Treasury stock

Total
shareholder'sequity(1,562,002)

45,466,463

33,219,444

Changes of items during the period
Dividends from surplus(619,940)(619,940)

Profit attributable to owners of parent

1,505,278

1,505,278

Purchase of treasury stock(345)

Change of scope of consolidation(1,661)－

Net changes of items other than shareholders’equity－－

883,677(345)

883,332

6,826,100

6,982,920

34,103,121(1,562,347)

46,349,794

Subscription
rights toshares

Noncontrollinginterests

Total
net assets－

1,499,155

47,998,180

Total changes of items during the period
Balance at the end of current period(345)(1,661)

Accumulated othercomprehensive income

Balance at the beginning of current period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
income1,032,562－

1,032,562

Changes of items during the period
Dividends from surplus－(619,940)

Profit attributable to owners of parent－

1,505,278

Purchase of treasury stock

－

(345)

Change of scope of consolidation－(1,661)

Net changes of items other than shareholders’equity

1,685,986

69,583

1,755,569

Total changes of items during the period

1,685,986

69,583

1,755,569－

78,406

2,717,308

Balance at the end of current period

2,718,548

69,583

2,788,131－

1,577,561

50,715,488- 10 -

78,406

1,833,975

For the Year ended March 31, 2016 (April 1, 2015 to March 31, 2016)(Thousands of yen)

Shareholders’equity

Capital stock

Balance at the beginning of current period

Capital surplus

6,826,100

Retainedearnings

6,982,920

Treasury stock

Total
shareholder'sequity(1,562,347)

46,349,794

34,103,121

Changes of items during the period
Dividends from surplus(619,933)

Profit attributable to owners of parent

1,935,434(619,933)
1,935,434

Purchase of treasury stock

(341)

(341)

Change of scope of consolidation－

Net changes of items other than shareholders’equity－－－

1,315,500(341)

1,315,159

6,826,100

6,982,920

35,418,621(1,562,688)

47,664,953

Subscription
rights toshares

Noncontrollinginterests

Total
net assets－

1,577,561

50,715,488

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

Accumulated othercomprehensive income

Balance at the beginning of current period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
income2,718,548

69,583

2,788,131

Changes of items during the period
Dividends from surplus－(619,933)

Profit attributable to owners of parent－

1,935,434

Purchase of treasury stock

－

(341)

Change of scope of consolidation－－

Net changes of items other than shareholders’equity(484,489)(79,875)(564,365)

29,359149,024(385,981)

Total changes of items during the period(484,489)(79,875)(564,365)

29,359149,024

929,177

Balance at the end of current period

2,234,058(10,292)

2,223,766

29,3591,726,586

51,644,665- 11 -

(4) Consolidated Statements of Cash Flows(Thousands of yen)
FY3/15(April 1, 2014 –March 31, 2015)

FY3/16(April 1, 2015 –March 31, 2016)

Cash flows from operating activities
Income before income taxes

2,888,099

3,278,200

Depreciation and amortization
Increase (decrease) in provision for removal cost of
property, plant and equipment
Increase (decrease) in provision for retirement benefits

3,433,918

3,551,381

105,622(267,670)(9,252)

2,225

Decrease (increase) in net defined benefit asset
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for bonuses(105,428)(18,315)(3,426)(204,695)

5,902

10,015

Increase (decrease) in provision for directors’ bonuses(1,804)

84

Increase (decrease) in allowance for doubtful accounts

75,081(81,381)Interest and dividend income(335,177)(121,089)

Share-based compensation expenses－
295,720319,291

Interest expenses
Interest on securities

29,359

(279)

(181)

Loss on disposal of property, plant and equipment

320,365

7,516

Loss (gain) on sales of noncurrent assets(39,871)(112,399)

Decrease (increase) in notes and accounts receivable

97,784233,280

Decrease (increase) in inventories
Net decrease (increase) in lease receivables andinvestment assets
Increase (decrease) in notes and accounts payable

1,414

10,312(857,297)

2,759,173(206,940)

116,222

Increase (decrease) in unearned revenue(82,792)

187,663

Increase (decrease) in accrued expenses

658,175(529,136)

Increase (decrease) in accrued consumption taxes
Decrease (increase) in other assets
Increase (decrease) in other liabilities

686,863(626,466)(3,152,361)(798,572)

65,089(189,787)

Subtotal

3,839,406

7,555,028

Interest and dividends received
Interest paid

335,456(265,744)

121,271(322,214)

Income taxes paid

(431,069)(979,100)

Net cash provided by operating activities

3,478,048

6,374,984(210,420)－(3,476,107)

Cash flows from investing activities
Purchase of investments in capital of subsidiaries
Purchase of noncurrent assets(5,095,211)

Purchase of investment securities－(10,000)

Decrease (increase) in operating loans receivableCollection of long-term loans receivable－
935(5,565,515)

Proceeds from sales of noncurrent assets

532,791

1,032,116(4,771,904)(8,018,769)

Net cash used in investing activities- 12 -

737

(Thousands of yen)
FY3/15(April 1, 2014 –March 31, 2015)

FY3/16(April 1, 2015 –March 31, 2016)

Increase in short-term loans payable

2,302,269

3,890,491

Decrease in short-term loans payable(1,391,920)(4,863,515)

Proceeds from long-term debt

7,465,249

6,156,389

Payments of long-term debt

Cash flows from financing activities(3,177,224)(3,063,024)

Proceeds from guarantee deposits received

318,258

366,620

Repayments of guarantee deposits received(358,628)(97,386)

Purchase of treasury stock

(345)

(341)

Payment of cash dividends(619,292)(619,717)

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

Net cash used in financing activities

4,500,037

1,731,186(1,575)(4,166)

Net increase (decrease) in cash and cash equivalents

3,204,607

83,236

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting fromaddition of consolidated subsidiaries
Cash and cash equivalents at end of period

2,232,163

5,891,402

454,632－

5,891,402

5,974,638

Effect of exchange rate change on cash and cash equivalents- 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 (loss), assets, liabilities, and other items by reportable segments
Fiscal year ended March 2015 (April 1, 2014 – March 31, 2015)(Thousands of yen)
Reportable segment
Water Supply &Area Heating &Real Estate
Drainage
Cooling
Business
Service andBusiness
Other Business

Adjustments
Total

Note 1

Carrying amount on
consolidated
statements ofincomeNote 2

Net sales
Net sales to outside
customers

15,568,025

3,192,863

2,350,456

21,111,344－Inter-segment
net sales/transfers

218,366

825,695

217,590

1,261,651(1,261,651)

15,786,391

4,018,558

2,568,046

22,372,995(1,261,651)

21,111,344

Segment income

2,345,926

605,259

214,493

3,165,678－

3,165,678

Segment assets

62,206,908

6,574,712

1,295,356

70,076,977

14,193,250

84,270,226

Segment liabilities

8,644,035

333,124

628,769

9,605,928

23,948,810

33,554,738

Depreciation andamortization

2,755,757

522,955

92,9743,401,686

32,232

3,433,918

Increase in property, plantand equipment andintangible assets

1,389,859

596,121578,3962,564,376

4,777

2,569,153

Total

21,111,344

Other items(Notes)1. Adjustments represent elimination of intersegment transactions.
2. Segment income refers to operating income.

- 14 -

Fiscal year ended March 2016 (April 1, 2015 – March 31, 2016)(Thousands of yen)
Reportable segment
Water Supply &Area Heating &Real Estate
Drainage
Cooling
Business
Service andBusiness
Other Business

Adjustments
Total

Note 1

Carrying amount on
consolidated
statements ofincomeNote 2

Net sales
Net sales to outside
customers

15,311,763

3,166,273

2,219,630

20,697,667－

20,697,667

Inter-segment
net sales/transfers

218,365

842,607

225,313

1,286,286(1,286,286)－

15,530,129

4,008,880

2,444,943

21,983,953(1,286,286)

20,697,667

Segment income

2,021,510

830,501

92,1972,944,208－

2,944,208

Segment assets

64,219,611

6,264,201

1,615,193

72,099,007

13,115,746

85,214,753

Segment liabilities

7,666,599

564,773

156,041

8,387,414

25,182,673

33,570,088

Depreciation andamortization

2,753,233

544,596

162,330

3,460,159

18,2333,478,393

Increase in property, plantand equipment andintangible assets

2,203,179

259,488508,889

2,971,556

2,192

2,973,748

Total

Other items(Notes)1. Adjustments represent elimination of intersegment transactions.
2. Segment income refers to operating income.

- 15 -