Creating value for aviation and metropolis with trust

Results Briefing for Fiscal
Year Ended in March 2023
May 26, 2023

AFC GroupTokyo Stock Exchange Prime division(Securities Identification Code: 8864)
https://www.afc.jp

Table of contents
Ⅰ.

Outline of the consolidated financial statements for the
fiscal year that ended in March 2023

・・・

2P

Ⅱ.

Forecast on the consolidated performance for the fiscal
year ending in March 2024

・・・

12P

Ⅲ.

Progress of the Medium- to Long-Term Management Plan

・・・

17P

(1) AFC Asset Management Co., Ltd. acquiring the first property

・・・

21P

(2) Investment in an aircraft fund as a major investor and obtained one
aircraft

・・・

22P(3) Temporary operation of the fresh products center in the domestic cargoterminal area of Haneda Airport

・・・

23P

(4) Installation of a solar light power generation facility in the engine plantin Seletar airport, Singapore

・・・

24P

(5) Holding a test-ride event of hydrogen forklift

・・・

25P

(6) Food donation; CSR activity

・・・

26P

Issues on the corporate governance of our company

・・・

27P

Ⅳ.

Airport Facilities Co.,Ltd.

1

Ⅰ.

Outline of the consolidated financial statements forthe fiscal year that ended in March 2023

Ⅱ.

Forecast on the consolidated performance for the
fiscal year ending in March 2024

Ⅲ.

Progress of the Medium- to Long-Term
Management Plan

Ⅳ.

Issues on the corporate governance of ourcompany

Airport Facilities Co.,Ltd.

2

Outline of the consolidated financial statements
for the fiscal year that ended in March 2023

Consolidated PL

 Net sales increased with the termination of the exemption of rent that was conducted for two fiscal years, and increase inwater supply and drainage service usage along with recovery in the number of airport users.
 Operation income decreased due to depreciation expenses related to asset retirement obligation associated with the startof the Haneda Airport 1-Chome Project, and increase in raw material expenses for the area heating and cooling business.
 Extraordinary profit was reported due to the implementation of amended declaration for corporation tax and consumption
tax in FY2020, as well as the sellout of the hotels in Kyoto. On the other hand, impairment loss was undertaken according
to the policy of dismantling and removing Osaka Sogo Building.
Unit: million yen

Year on year:+1,739 million yen (+7.3%)

Net sales

25,51626,00024,15524,000

4,000
3,000

23,777(22,784)*

Year on year:-777 million yen (-23.6%)
3,831

2,503

(2,460)*1,000
020,000
FY2020 (results)

Ordinary
incomeFY2021 (results)

FY2020 (results)

FY2022 (results)

Year on year:-841 million yen (-28.3%)
3,617

Net income

FY2021 (results)

1,564
821

1,000

(2,247)*

- 933

2,121

2,000

FY2022 (results)

Year on year:+743 million yen (+90.4%)

2,000
2,962

3,000

3,280

2,000

22,0004,000

Operatingincome0

1,000- 1,000
FY2020 (results)

FY2021 (results)

FY2022 (results)

FY2020 (results)

FY2021 (results)

FY2022 (results)* As for FY2020, exemptions of rent were reported as an extraordinary loss and had not been deducted from sales. The case assuming they had been deducted from sales is shown in figures shaded in blue in the chart.

Airport Facilities Co.,Ltd.

3

Outline of the consolidated financial statements
for the fiscal year that ended in March 2023

Highlights of
new investment

Investment in the aircraft fund
"MACH I" as an anchor investor

Promotion of non-asset business;
Acquisition of Hiroshima Motomachi
NS Building

Fund operationcompany

Mercuria Investment Co., Ltd.
Airborne Capital Limited

Use

Office, garage, store

Fund size

Approx. 50 billion yen(investment by our company:
4 billion yen)

Location13-13 Motomachi, Naka-ku, Hiroshima City,
Hiroshima

Equipment to
be invested

Assuming the narrow bodies for Boeing
737, Airbus 320, etc.

Total floor
area

5,076.91 m2

Invested
countries

Regardless of Japan or abroad

Key points

Central area of Hiroshima, along the main street
A highly visible building in a busy area
maintained under good condition
Airport Facilities Co.,Ltd.

4

Outline of the consolidated financial statements
for the fiscal year that ended in March 2023

Performance bybusiness segment

Net sales increased with the termination of the exemption of rent andthe acquisition of Hiroshima Motomachi NS Building
On the other hand, operating income decreased due to depreciation
expenses related to asset retirement obligation.

Real estatebusiness

Net sales:
19,730 million yen (year on year +4.6%)
Operating income: 2,172 million yen (year on year -24.1%)

Operating income

Net sales
20,000[Net sales](+) Termination of the exemption of
rent(+) Rent revenue according to theacquisition of Hiroshima
Motomachi NS Building(+) Full-year operation of ALPINE
Koshigaya

3,500
18,000

3,000
2,500

16,00019,73014,00018,845<Major factors for increase/decrease>

2,000
2,862
1,500

2,172
12,0001,000
500

10,000
FY2021 (results)

FY2022 (results)

Unit: million yen

FY2021 (results)

FY2022 (results)[Operating income](-) Increase in depreciation expenses
associated with the Haneda Airport
1-Chome Project

Unit: million yen

Airport Facilities Co.,Ltd.

5

Outline of the consolidated financial statements
for the fiscal year that ended in March 2023

Area heating &cooling business

Performance bybusiness segment

With the termination of the exemption of heating charge claims andmarginal increase in the sales of heating and cooling services, net sales
increased.
On the other hand, raw material expenses (electricity, gas) increased
and the operating income decreased.
Net sales:
3,412 million yen (year on year +15.3%)
Operating income: 225 million yen (year on year -50.2%)

Operating income

Net sales
500

4,000

<Major factors for increase/decrease>
400
3,000

[Net sales](+) Termination of the exemption ofheating charge claims(+) Marginal increase in the sales ofheating and cooling services

300
2,000

3,412
2,957

452
200

1,000

225

100

0

FY2021 (results)

FY2022 (results)

Unit: million yen

0

FY2021 (results)

FY2022 (results)[Operating income](-) Increase in raw material expenses
due to increase in energy prices

Unit: million yen

Airport Facilities Co.,Ltd.

6

Outline of the consolidated financial statements
for the fiscal year that ended in March 2023
Water Supply &Drainage Service
and OtherBusiness

Performance bybusiness segment

With an increase in the number of airport users such as passengers,
water supply and drainage business is recovering.
Net sales:
2,373 million yen (year on year +20.1%)
Operating income: 106 million yen(operating loss of 33 million yen for the same period of the preceding year)

Operating income

Net sales
2500<Major factors for increase/decrease>

120
2000
80

1500

106
2,373
1000

40

1,974

[Net sales](+) Recovery of water supply anddrainage service usage(Increase in the number of passengers,
opening of hotels and commercial
facilities in Haneda Airport)

0
500

-33
-40

0

FY2021 (results)

FY2022 (results)
Unit: million yen

FY2021 (results)

FY2022 (results)[Operating income](+) Increase in operating sales due to
net sales recovery

Unit: million yen* As for other businesses, local area communication network business and photovoltaic power generation business are implemented.
Airport Facilities Co.,Ltd.

7

Outline of the consolidated financial statements
for the fiscal year that ended in March 2023

Consolidatedbalance sheet

End of March 2022

End of March, 2023

Unit: million yen

Current
assets
24,583

Unit: million yen

Current liabilities
11,051

Current
assets
28,881

Noncurrent
liabilities
36,110Total assets:
decrease by
2 billion yen

Noncurrent
assets
77,884

Net assets
55,306

Non-current
assets71,521

Current liabilities
9,865
Noncurrent
liabilities
33,168

Net assets
57,368Amount of total assets

102.4 billion yen

Amount of total assets

100.4 billion yen

Net assets per share

1,055 yen

Net assets per share

1,095 yen

Equity ratio

51.4%

Equity ratio

54.5%[Assets][Liabilities][Net assets]

Although there were the acquisition of Hiroshima Motomachi NS Building, investment in the aircraft fund, andincrease due to the collection of operating loans, assets decreased due to the sellout of hotels in Kyoto, etc.
and the impairment of Osaka Sogo Building.
Liabilities decreased with the payments of long-term debt, etc.
Net assets increased with increase in retained earnings and in exchange conversion adjustment accounts
due to the depreciation of the yen.
Airport Facilities Co.,Ltd.

8

Outline of the consolidated financial statements
for the fiscal year that ended in March 2023

Consolidated cash flow

Unit: million yen

Cash and cash
equivalents as of theend of March 2022

Operating cash flow

Investing cash flow

Financial cash flow

Translation adjustmentof cash, etc.

Cash and cash
equivalents as of theend of March 2023

[Cash flows from operating activities]
While expenses increased with the acquisition of real estate for sales, collection of business loans and increasein corporation tax, income exceeded this due to the amount of net income for the period before taxes anddepreciation expenses.

[Cash flows from investing activities]
While there were the purchase of investment securities related to aircraft fund and expenses due to theacquisition of non-current assets, income from the sellout of hotels and office buildings exceeded this.
[Cash flows from financing activities]
Expenses attributable to payments of long-term debt and payment of cash dividends
Airport Facilities Co.,Ltd.

9

Outline of the consolidated financial statements
for the fiscal year that ended in March 2023

Return of profits toshareholders

Annual dividend
・While the profit level exceeded the plan, considering the lack oftransparency over the future trend of energy prices that affects the raw
material expenses for the area heating and cooling business, inaddition to the increase in depreciation expenses associated with theHaneda Airport 1-Chome Project, dividend is offered as forecast at the
beginning of the term.

Dividend per share:

14 yen(planned)

Interim dividend 7 yen

・Our company places importance on the return of profits to ourshareholders, and dividend is determined by comprehensively
considering the financial conditions.

+ year-end dividend 7 yen(planned)

Changes in annual dividends

（Yen）

(%)

20

100

85.1
14

14

14

14

14

14

80
60

10

31.2
44.7
32.3

40
20

33.1

0

0
FY2017FY2018FY2019Annual dividend

FY2020

FY2021

FY2022

Payout ratio (consolidated)
Airport Facilities Co.,Ltd.

10

Return of profits toshareholders

Recent Efforts
Changes in shareholder benefits

・After repeatedly conducting investigations from the perspective of developing further
understanding of the business of AFC Group, shareholder benefit is changed to a meal voucher
for Blue Corner UC, a restaurant operated by our group company from which you can watch theairplanes.

Restaurant
nameBlue Corner UC

Address

3-5-10 Haneda Airport, Ota-ku, Tokyo
2F of the Utility Center Building

Open hours

On weekdays, from 11:00 to 21:00 (last callis 19:45)
Closed on Saturdays, Sundays and holidays

Official
websitehttps://bluecorner.afc.jp/

Official
Instagram

https://www.instagram.com/bluecorner_1998/
Airport Facilities Co.,Ltd.

11

Ⅰ.

Outline of the consolidated financial statements forthe fiscal year that ended in March 2023

Ⅱ.

Forecast on the consolidated performance for the
fiscal year ending in March 2024

Ⅲ.

Progress of the Medium- to Long-Term
Management Plan

Ⅳ.

Issues on the corporate governance of ourcompany

Airport Facilities Co.,Ltd.

12

Forecast on the consolidated financial statements
for the fiscal year ending in March 2024

Consolidated PL

 We are expecting an increase in net sales with the promotion of non-asset business, recovery of water supply anddrainage business to the pre-COVID-19 level along with increase in the numbers of air travelers and airport users, andchange in the usage fee structure of area heating and cooling business.
 Although we are expecting increase in non-operating income with the investment profit of aircraft fund, etc., profit in eachcategory is assumed to decrease because expenses for the future, including the depreciation expenses related to asset
retirement obligation associated with the Haneda Airport 1-Chome Project and increase in repair expenses for existing
facilities, are expected.
 We aim to achieve increases in net sales and operating income with the stable achievement of the Medium- to LongTerm Management Plan.
Unit: million yen

Net salesYear on year:+538 million yen (+2.1%）

26,000OperatingincomeYear on year:-392 million yen (-15.6%)

2,500
2,503

24,00025,51622,00026,054

2,000

2,111

1,500

20,000
FY2022 (results)

Ordinary
incomeYear on year:-137 million yen (-6.4%)

2,100
1,900
2,121
1,700

1,984

1,500
FY2022 (results)

FY2022 (results)

FY2023 (forecast)

FY2023 (forecast)

Net income
1,700
1,500
1,300
1,100
900
700

FY2023 (forecast)Year on year:-268 million yen (-17.1%)

1,564
1,296
FY2022 (results)

FY2023 (forecast)
Airport Facilities Co.,Ltd.

13

Forecast on the consolidated financial statements
for the fiscal year ending in March 2024

EBITDA + recovery

 Although profit is expected to decrease in FY2023, it is expected that the cash flow of the company will
be steady.

EBITDA + recovery
8,000

7,501

7,835

7,619

7,464

7,535
6,949

6,737
6,000

4,000

2,000

0

FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023(forecast)
Unit: million yen* EBITDA + recovery = operating income + depreciation expense + recovery + lease cost
Recovery refers to the repayment of the principal of loans.
Airport Facilities Co.,Ltd.

14

Forecast on the consolidated financial statements
for the fiscal year ending in March 2024

Consolidated PL

Outlook by business segment

Net sales: Bar graph, left axis
Operating income: Line graph, right axis

Real estate business

Area heating & coolingbusiness

Water Supply & Drainage
Service and Other BusinessYear on year

Year on year

Year on year

(Net sales)-55 million yen (-0.2%)(Operating income) -639 million yen (-29.4%)(Net sales)+350 million yen (+10.2%)(Operating income) +179 million yen (+79.5%)(Net sales)+244 million yen (+10.2%)(Operating income) +68 million yen (+64.1%)

20,00019,73019,675

19,50019,000

2000

2,172

18,0001000
0FY2022(results)

4,000

3,412

3,762

FY2023(forecast)

1,000

500
400

3,000

404

2,000
1,533

18,500

3000

300
200

225

100

0

0
FY2022(results)

FY2023(forecast)

3,000
2,500
2,000
1,500
1,000
500
0

2,373

2,617

200

174

150
100

106
50
0
FY2022(results)

FY2023(forecast)

Unit: million yen<Major factors for increase/decrease>[Net sales](+) Increase in rent revenue according to
the promotion of non-asset business(-) Sellout of hotels in Kyoto, etc.
⇒ Asset portfolio is currently
reassembled.

[Net sales](+) Change in usage fee structure[Net sales](+) Recovery to the pre-COVID-19 level
Full-year operation of facilities near
the airport[Operating income](-) Increase in depreciation expenses(asset retirement obligation)
Increase in repair expenses[Operating income](+) Change in usage fee structure(-) Increase in raw material expenses
due to increase in energy prices[Operating income](+) Increase in net sales

Airport Facilities Co.,Ltd.

15

Forecast on the consolidated performancefor the fiscal year ending in March 2024

Return of profits toshareholders

Annual dividend
Annual dividend per share for the fiscal
year ending in March 2024:

14 yen(planned)

Interim dividend 7 yen+ year-end dividend 7 yen (planned)

Changes in annual dividends

(Yen)

(％)

20

100
14

14

14

10

14

14

85.1

14

80
60

31.2
44.7
32.3

14

54.0

40

20

33.1

0

0
FY2017FY2018FY2019Annual dividend

FY2020

FY2021

FY2022

FY2023(forecast)

Payout ratio (consolidated)* Payout ratio is not announced for the fiscal year that ended
in March 2021 because of the company's bottom-line loss.
Airport Facilities
Facilities Co.,Ltd.
Co.,Ltd.

16

Ⅰ.

Outline of the consolidated financial statements forthe fiscal year that ended in March 2023

Ⅱ.

Forecast on the consolidated performance for the
fiscal year ending in March 2024

Ⅲ.

Progress of the Medium- to Long-Term
Management Plan

Ⅳ.

Issues on the corporate governance of ourcompany

Airport Facilities Co.,Ltd.

17

Progress of the Medium- to Long-Term
Management Plan

Basic Policy

Continuous implementation of selection and concentration andmaximum use of business resources

Basic Policy

Business that supports
AFC’s growth
Airport-related business

Non-airport and overseas
business

Priority measure I

Priority measure II

Priority measure III

Haneda Airport
1-Chome Project

Expansion of nonasset business

Improvement of the
profitability ofexisting business

Optimization of the business portfolio centering on
three priority measures

Provision of facilities
and services that meetthe needs of customers
and society

Creation of value
Creation of value forstakeholders and asustainable society

Further strengthening of
the business foundation

Human resource andorganization
development strategy

Strengthening ofgovernanceUse of IT

Airport Facilities Co.,Ltd.

18

Progress of the Medium- to Long-Term
Management Plan

Basic Policy

Changes in the business structure and profit growth
AFC aims to grow and diversify profit sources by steadily building on non-asset and overseas businesses,
while expanding airport-related assets through large-scale investments at Haneda Airport

Develop a capital efficiency-conscious business portfoliothat is resilient to risks
Asset mix target

Targets for business profit growth and business mix
Airportrelated
business

End of
FY202859%

End of
FY2021
Overseasbusiness
Restructuring
projects

Non-airport
business

Airportrelated
business

３

５：

Overseasbusiness

56%

Non-asset
business
Airportrelated realestatebusiness

Non-airport
business

1.7-foldincrease
Airport-related
real estatebusiness

Non-airport
business

Airport-related
real estatebusiness

Haneda Airport
1-Chome Project
Airport-related
infrastructure business

Nonairport
business：

５

Overseasbusiness
Non-asset
business

Non-airport
business

Overseas business1.1-foldincrease

Airport-related
infrastructure business

７

Nonairport
business

Airport-related
infrastructurebusiness

Haneda Airport
1-Chome Project
Airport-related
real estatebusiness

Restructuring
projects

FY2021

FY2028*Business profit = operating income + non-operating income
Airport Facilities Co.,Ltd.

19

Progress of the Medium- to Long-Term
Management Plan

Basic Policy

Net sales

Net income

Operating income

1.3
times

32.0

1.5

billion yen

times

4.0

5

times

billion yen

3.3
billion yen

3.2

23.7

billion yen

billion yen

0.82
billion yen

FY2021
FY2021…

Target in
FY2028…

FY2021
FY2021…

Target in
FY2028…

FY2021…
FY2021

FY2028…
Target in

Results

FY2028Results

FY2028Results

FY2028

ROA (Return on Assets)

EBITDA + recovery

1.5 times

1.3 times

3.4%

5.0%

FY2021 Results

Target in FY2028

7.5
billion yen
FY2021 Results

10billion yen
Target in FY2028

ROA = business profit (operating income + non-operating income)÷ total assets

Airport Facilities Co.,Ltd.

20

Progress of the Medium- to Long-Term
Management Plan
AFC Asset Management Co., Ltd. acquiring the first property

・AFC Asset Management Co., Ltd., wasestablished for the development andpromotion of our non-asset business outside
airports.
・Revolving business will be implemented,
where a property is obtained and sold after
raising asset values through refurbishment,
etc., and a new property will be purchasedwith the funds obtained from the sales.
・The first property was obtained in March
2023. It is a property located at the central
part of Hiroshima City, Hiroshima Prefecture,having strong competitiveness.
・For the future, exit strategy will be sought
while accumulating excellent properties todiversify revenue sources.

Building
Name

Hiroshima Motomachi NS Building

Location13-13 Motomachi, Naka-ku, Hiroshima City,
HiroshimaUse
Key points

Office, garage, store
Central area of Hiroshima, along the main street
A highly visible building in a busy area
maintained under good condition
Airport
AirportFacilities
Facilities
Co.,Ltd.
Co.,Ltd.

21

Progress of the Medium- to Long-Term
Management Plan
Investment in an aircraft fund as a major investor and obtained one aircraft・Signed an investment contract for "MACH
I," an aircraft fund newly established andoperated by Mercuria Investment Co., Ltd.,as an anchor investor (major investor).
・It is the first aircraft fund for domestic
investors after the occurrence of the
COVID-19 pandemic.
・The first aircraft was obtained in February
2023.
・Expansion of investment in aircraft related
business will continuously be considered.

Fund
operationcompany

Mercuria Investment Co., Ltd
Airborne Capital Limited

Fund size

Approx. 50 billion yen(investment by our company: 4 billion yen)Equipment to Assuming the narrow bodies for Boeing
be invested 737, Airbus 320, etc.
Invested
countries

Regardless of Japan or abroad

Acquired
airframe

Airbus A320ceo
Airport Facilities Co.,Ltd.

22

Progress of the Medium- to Long-Term
Management Plan
Start of the temporary operation of the fresh products centerin the domestic cargo terminal area of Haneda Airport・Fresh products center specializing in handling
fresh products is currently being temporarily
operated within the domestic cargo terminal
area of Haneda Airport, maintained andoperated by our company.
・The center consolidates the fresh products
suppliers who are the tenants within theterminal.

・It is intended to improve the efficiency of thedelivery and receipt of cargo by consolidatingthese suppliers, and to improve safety by
reducing the amount of traffic within the area.
・It is scheduled to go into full-scale operation in
FY2024. From here on, ancillary facilities suchas refrigerators are developed to create a
valuable area.

* Areas inside the red square is being temporarily operated

Scale

Approx. 3,000m2(Scheduled to cover an area of 7,200m2 at
the time of full-scale operation)

Starting dateof temporary 2022
operation
Tenants

Forwarders handling fresh foods andflowers

Airport Facilities Co.,Ltd.

23

Progress of the Medium- to Long-Term
Management Plan
Installation of a solar light power generation facility in the engine plantin Seletar airport, Singapore
・Airport Facilities Asia Pte. Ltd. (AFA), ourgroup company overseas, installed asolar light power generation facility on
the rooftop of the engine plant that thecompany owns in Seletar airport,
Singapore.
・The electricity generated is utilized by
Vector Aerospace Asia Pte. Ltd., a tenantof the engine plant. The company pays
the electricity charges to AFA.
Invested amount・Starting from this case, we will consider
installing solar power generation facilities
also overseas.

Use

SGD490,678(Approx. 49 million yen)
Electricity for inhouse consumption

Annual amount of
488,100 kWh
power generation
Date ofcompletion

April 2023

Start of operation May 2023
Airport Facilities Co.,Ltd.

24

Progress of the Medium- to Long-Term
Management Plan
Holding a test-ride event of hydrogen forklift
・A test-ride event of fuel cell forklifts using greenhydrogen as a fuel (hydrogen forklifts) was held inorder to consider introducing them within the cargoarea of Haneda Airport.
・Airline companies and forwarders participated in thetest ride event and there had been many favorable
opinions regarding the performance of the forklift.
・Towards the achievement of carbon neutrality in 2050,
initiatives will be promoted with relevant companies
and the government.

Future development
Considering the introduction ofhydrogen forklift and the developmentof hydrogen station within the cargoarea of Haneda Airport
・Cooperating with the governmentand relevant companies, efforts will bemade to reduce CO2 emission.

Consider the further
utilization of renewableenergy within the airport
・Make use of the knowledge on
solar light power generation facilities
accumulated until now.

Contribute to

the realization ofan eco-airport
towards the achievement ofcarbon neutrality in 2050
Airport Facilities Co.,Ltd.

25

Progress of the Medium- to Long-Term
Management Plan
Food donation; CSR activity
・Stockpiles of our company against disasters that are to be renewed were donatedto the municipality governments, etc. where the offices of our company are located.
We contributed to the reduction of food loss and to provide the supplies to those
who are in need of food support.
・Our company sympathizes with the activity of volunteer-run cafeterias providing
free or inexpensive meals to children, and donated boxed lunches made at theinflight meal factory.
・We will continue with activities to contribute in the region and society, aiming torealize a sustainable society.

Airport Facilities Co.,Ltd.

26

Ⅰ.

Outline of the consolidated financial statements forthe fiscal year that ended in March 2023

Ⅱ.

Forecast on the consolidated performance for the
fiscal year ending in March 2024

Ⅲ.

Progress of the Medium- to Long-Term
Management Plan

Ⅳ.

Issues on the corporate governance of ourcompany

Airport Facilities Co.,Ltd.

27

Issues on the corporate governance of our company
 Independent Inspection Committee on the Governance of the Designation of Executives wasestablished and report was received.
…Because it was confirmed there may be a problem in the process of discussions regarding the appointment of candidates
for board members in June 2021, an independent inspection committee was established, consisting of external experts who
have no interest.
…Our company received the report on the result of inspection from the committee on April 26.

 Problems identified and recommendations on improvement measures regarding corporate
governance including the designation of executives<Major problems>
・Risks regarding the appointment of former officials of the Ministry of Land, Infrastructure, Transport and Tourism had notbeen appropriately managed.
・There remains the old order that a post of executive should be provided to major stakeholders.
・Information is not transmitted adequately and in right timing to the board of directors and the nominating committee.
・Strategy on executive appointment linked with the Medium- to Long-Term Management Plan had not been discussed, etc.
<Recommendations on improvement measures>(1) Implement training for executives on the governance of the designation of executives, and discuss the problem at theboard of directors.
(2) Formulate a policy for the designation of executives by the nominating committee and the board of directors.
(3) Discuss the strategy regarding human resources for executives linked with the Medium- to Long-Term Management Plan
at the board of directors.
(4) Establish a mechanism where important information is transmitted adequately and in right timing to the board of directors.

Our company takes seriously and sincerely the problems pointed out and improvement measures
recommended, reassures the improvement of governance as the prioritized issue for management,
and will promote the improvement of governance in order to further enhance our executive
management system.
Airport Facilities Co.,Ltd.

28

Disclaimer

Warnings■This reference document is not intended to solicit investment.
■Descriptions regarding future forecasts are based on information currently available,
and the results may turn out differently depending on changes in the businessenvironment, etc.
■Users should make important decisions on investment and other matters at their own
discretion.

This reference material is also available on our company website.
https://www.afc.jp/

Inquiries:
Public Relations Investor Relations
Division, Airport Facilities Co., Ltd.
TEL

： 03-3747-0953

E-MAIL

： afc_ir@afc.jp
Airport Facilities Co.,Ltd.

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