May 11, 2023

Financial Results for the Year Ended March 31, 2023 [J-GAAP]
Company Name:AIRPORT FACILITIES CO., LTD. (AFC)Stock Exchange Listed on:
Tokyo Stock Exchange (Prime Market)
Company Code:8864
URL: https://www.afc.jp/english/
Representative: Toshiaki Norita, President & CEO
Inquiries: Takahiro Hama, Executive Officer, General Manager of Accounting Dept. TEL: +81-3-3747-0251
The Date of the Ordinary General Shareholders’ Meeting: June 29, 2023
The Date of the Dividend Payment Start:
June 30, 2023
The Date of Filing the Securities Report:
June 29, 2023
Preparation of Earnings Presentation Material:
Yes
Holding of Earnings Announcement:
Yes (for analysts)(Figures are rounded off to the nearest million yen.)

1. Consolidated Financial Results for the Year Ended March 2023 (April 1, 2022 - March 31, 2023)(1) Consolidated Business Results(Percentages are changes from the same period of the previous year.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Fiscal year ended

Millions of yen% Millions of yen

25,516
17,74823,777

March 31, 2023
March 31, 2022

7.3
(1.5)

% Millions of yen(23.6)
2,121(14.3)
2,962
Fiscal year ended March 31, 2023: 2,777 million yen
Fiscal year ended March 31, 2022: 1,078 million yen(Note) Comprehensive income:Basic earnings per
share
Fiscal year ended

March 31, 2023
March 31, 2022

% Millions of yen

2,503
3,280

Diluted earnings
per share

Return on equity(28.3)(18.1)
157.4%
―%

1,564
821

Ordinary income tototal assets

%

90.4
―

Operating margin

Yen

Yen

%

%

%

31.28
16.45

31.21
16.39

2.9
1.5

2.0
2.9

9.8
13.7

(Reference) Equity in earnings of affiliates:

Fiscal year ended March 31, 2023:
Fiscal year ended March 31, 2022:－ million yen－ million yen(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Millions of yen%

Yen

100,403
102,468

57,368655,30654.5
51.4

1,095.16
1,055.28

As of March 31, 2023
As of March 31, 2022
(Reference) Equity capital:

Net assets

Millions of yen

As of March 31, 2023: 54,799 million yen

As of March 31, 2022: 52,701 million yen(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at year end

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2023
March 31, 2022

2,017
4,758
8,467

1,198
(2,704(449)(2,704(4,460)(1,907(5,117)(1,907

8,598
6,583
9,612

2. Dividends
Dividends per share

Q1
Fiscal year ended

Q2

Yen

March 31, 2022
March 31, 2023
Fiscal year ending March 31,
2024 (Forecasts)

Q3

Yen

Q4

Yen

AnnualTotal
dividends(annual)Payout ratio(consolidated)

Dividends to
net assets(consolidated)

Yen

Yen

Millions of yen

%

%

―
―

7.00
7.00

―
―

7.00
7.00

14.00
14.00

699
700
9

85.1
44.7

1.3
1.3

―

7.00

―

7.00

14.00

54.0

3. Forecast of Consolidated Earnings for the Year Ending March 2024 (April 1, 2023 - March 31, 2024)(Percentages are changes from the same period of the previous year.)Net salesFirst half
Full fiscal year

Operating income

Millions of yen%

Millions of yen%

13,011
26,054

2.3
2.1

1,272
2,111

(29.6)(15.6)

Profit attributable toowners of parent

Ordinary income
Millions of yen- 1 -Basic earnings
per share%

Millions of yen%

Yen

1,226 (27.8)
1,984
(6.4)

817
1,296

(37.0)(17.1)

16.32
25.90

＊ 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: Yes
4) Restatement of revisions: No(3) Number of issued shares (common shares)
1) Number of issued shares
As of March 31, 2023:(including treasury stock)2) Number of treasury stock
As of March 31, 2023:
3) Average number of shares during Fiscal year ended March
the period
31, 2023:

52,979,350 shares As of March 31, 2022:

52,979,350 shares

2,941,665 shares As of March 31, 2022:

3,038,541 shares

50,013,504 shares Fiscal year ended March
31, 2022:

49,933,408 shares(Reference) Summary of Non-consolidated Results
1. Non-consolidated Financial Results for the Year Ended March 2023 (April 1, 2022 - March 31, 2023)(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, 2023
March 31, 2022

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

22,102
20,868
20,81

5.9
0.2
(3.6

1,985
2,575

(22.9)
4.8

1,876
2,599

(27.8)
3.5

1,418
696

122.6
―
―

Net income
per share
Fiscal year ended

March 31, 2023
March 31, 2022

Diluted net income
per share
Yen

Yen

28.35
12.75

28.29
12.71

(2) Non-consolidated Financial Position
Total assets

Net assets

Millions of yen

As of March 31, 2023
As of March 31, 2022
(Reference) Equity capital

Equity ratio

Millions of yen

Net assets per share%

Yen

88,60050,56857.0
91,45049,47754.0
89,38049,87955.7
As of March 31,
2023: 50,518 million yen As of March 31, 2022: 49,401 million yen
89,3801,009.60
989.19997.58

2. Forecast of Non-consolidated Earnings for the Year Ending March 2024 (April 1, 2023 – March 31, 2024)(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%

11,00322,297
20,9

(0.0)
0.8
0.6

1,018
1,530
1,176

(30.6)(18.4)(54.8

Millions of yen%

697 (41.7)
1,044
891 (26.3)
40.1
891* Financial Results report is outside the scope of an audit by certified public accountants or an audit corporation.

Yen

13.92
20.86
17.8

* 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 and someconditions that we judge rational, and therefore they do not constitute a guarantee that they will be realized. Actual earnings may differ greatly fromthe above forecasts for various reasons. For the assumptions for earnings forecasts and cautions regarding the use of the earnings forecasts, pleaserefer to page 5 “1. Summary of Operating Results, etc., (4) Earnings forecast for the fiscal year ending March 2024”.

- 2 -1. Summary of Operating Results, etc.
(1) Summary of Operating Results for the Year Ended March 2023
During the year ended March 31, 2023, the Japanese economy continued to be on a gradual recovery trend despite the impactof the spread of COVID-19 as the world is learning to live with COVID-19. Meanwhile, there is a risk that the overseas
economic downturn caused mainly by global monetary tightening might put downward pressure on the Japanese economy,
and we also need to carefully monitor its effect on surging prices, supply constraints, the fluctuations in the financial andcapital markets, etc.
In the aviation industry, the tourism demand for domestic flights is recovering partly thanks to support from thegovernment’s measures to stimulate demand. For the international flights, the number of visitors to Japan continues to be on
a recovery trend after the government substantially eased various border controls in October 2022 and the entry restrictions
on visitors from China since March 2023. In May 2023, the legal status of COVID-19 under the law on infectious diseases
was downgraded to be the same category as seasonal influenza, etc., which is expected to further promote recovery of thesocioeconomic activities and to contribute to further recovery of passenger demand.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of¥25,516 million (up 7.3% from the previous fiscal year) mainly because there was no debt forgiveness of rent receivablesfrom airline companies which was recorded as part of the measures under the COVID-19 crisis in the fiscal year ended
March 31, 2022 and there was a continued recovery trend in water supply and drainage usage year-on-year. Operating
income was ¥2,503 million (down 23.6%) due to increases in amortization related to asset retirement obligations associatedwith the start of the Haneda Airport 1-Chome project and in raw material costs in the Area Heating & Cooling Business.
Ordinary income was ¥2,121 million (down 28.3%) due to a decrease in commission fee and an increase in provision forremoval cost related to various constructions. As extraordinary income and loss items, we recorded tax refund in relation to
the filing of amended returns for corporate tax and consumptions for the year ended March 31, 2021, gain on sale of noncurrent assets related to hotels and office buildings for lease, and impairment loss for rental buildings in Osaka International
Airport, and tax expense decreased in relation to the sale of hotels mentioned above. As a result, profit attributable to ownersof parent amounted to ¥1,564 million (up 90.4%).
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥19,730 million (up 4.6% from the previous fiscal year) mainly because there
was no debt forgiveness of rent receivables as part of the measures under the COVID-19 crisis, but operating income
was ¥2,172 million (down 24.1%) due to an increase in amortization related to asset retirement obligations.
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport Heating & Cooling Co., Ltd.
recorded net sales of ¥3,412 million (up 15.3% from the previous fiscal year) mainly because there was no debt
forgiveness of rent receivables from airline companies as part of the measures under the COVID-19 crisis although sales
increased only slightly. On the other hand, a significant increase in raw material costs due to high electricity/gas prices
resulted in a year-on-year decrease in operating income to ¥225 million (down 50.2%).
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business continued to show a recovery trend in water supply and drainage
usage compared to a year earlier with an increase in the number of airport users as no movement restrictions were issued in
the current fiscal year despite the spread of COVID-19. Net sales including other businesses amounted to ¥2,373 million(up 20.1% from the previous fiscal year) and operating income amounted to ¥106 million (operating loss of ¥33 million
for the same period of the previous fiscal year).
In terms of our efforts related to not-asset business, one of the priority measures in the Medium- to Long-Termmanagement Plan developed in May 2022, we acquired Hiroshima Motomachi NS Building as our first project in March2023 based on the consultation with AFC Asset Management Co., LTD., established as a subsidiary dedicated to thisbusiness. We also made the first investment in January 2023 in the aviation fund with which we signed an investment
agreement in July 2022 as part of our effort to expand into new business domains, and subsequently the fund purchased
its first airplane.
The Group will continue to make a united effort for steady development of the business.

- 3 -(2) Summary of Financial Position as of March 31, 2023
(Assets)
Total assets as of March 31, 2023 amounted to ¥100,403 million, a decrease by ¥2,064 million compared to March 31,
2022, mainly due to depreciation of buildings and asset retirement assets, sale of hotels and office buildings for lease, andrecognition of impairment loss on rental buildings in Osaka International Airport, despite purchase of real estate for sale,investment in an aviation fund, and an increase in operating loans due to new loans made.
(Liabilities)
Total liabilities as of March 31, 2023 amounted to ¥43,034 million, a decrease by ¥4,127 million compared to March 31,
2022, mainly due to payments of long-term debt.
(Net assets)
Total net assets as of March 31, 2023 amounted to ¥57,368 million, an increase by ¥2,062 million compared to March 31,
2022, mainly due to an increase in retained earnings and foreign currency translation adjustment.
As a result, equity ratio as of March 31, 2023 increased by 3.1 points to 54.5% compared to March 31, 2022.
(3) Summary of Cash Flows for the Fiscal Year Ended March 31, 2023
Cash and cash equivalents (“cash”) as of March 31, 2023 amounted to ¥8,598 million, a decrease of ¥1,014 million fromMarch 31, 2022.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥2,017 million (previous fiscal year: ¥8,467 million provided), mainly
attributable to an increase in inventory due to purchase of real estate for sale, an increase in operating loans due to newloans made and an increase in income taxes paid despite recording of income before income taxes and noncash items suchas depreciation.
(Cash flows from investing activities)
Net cash provided by investing activities was ¥1,198 million (previous fiscal year: ¥449 million used), mainly attributableto proceeds from sale of non-current assets including hotels and office buildings for lease despite purchase of investment
securities in relation to investment in an aviation fund and purchase of non-current assets.
(Cash flows from financing activities)
Net cash used in financing activities was ¥4,460 million (previous fiscal year: ¥5,117 million used), mainly attributable topayments of long-term debt and payment of cash dividends.
(Reference) Cash Flow Indicators
FY2021/3

FY2022/3

FY2023/3

Equity ratio (%)

52.1

51.4

54.5

Equity ratio at market value (%)

30.9

28.0

28.9

Debt repayment period (years)

7.2

3.6

13.4

Interest coverage ratio (times)

13.0

26.8

6.9

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.

- 4 -(4) Earnings Forecast for the Fiscal Year Ending March 2024
In the Real Estate Business, we expect full-year operation of the property purchased during the year ended March 31, 2023
and purchase of new properties, but we also expect an increase in costs mainly due to renovation of existing facilities. In
the Area Heating & Cooling Business, there are still concerns over raw material costs remaining high. Meanwhile, in the
Water Supply & Drainage Service and Other Business, we expect water supply and drainage usage to return to almost the
pre-COVID-19 levels.
We also expect to record non-operating income including return on investment in the aviation fund. Accordingly, theforecast for the year ending March 31, 2024 is net sales of ¥26,054 million (up 2.1% from the previous fiscal year),
operating income of ¥2,111 million (down 15.6%), ordinary income of ¥1,984 million (down 6.4%), and profit attributableto owners of parent of ¥1,296 million (down 17.1%).
(5) Basic Policy Regarding Distribution of Earnings and Dividends for the Year Ended March 31, 2023 and the YearEnding March 31, 2024
While we focus on maintenance of stable management base and enhancement of financial strength, we also consider
profit return to shareholders is important and strive to stably return profits to shareholders with the dividend payout ratioof over 40% in consideration of current performance and future outlook.
Based on the above policy and comprehensive consideration of our financial condition, etc., we plan to pay annual
dividend of ¥14 per share (interim dividend of ¥7 and year-end dividend of ¥7) for the fiscal year ended March 31, 2023.
For the fiscal year ending March 31, 2024, we plan to pay annual dividend of ¥14 (including interim dividend of ¥7).

2. Basic Policy Regarding Selection of Accounting Standards
The Group adopts Japanese Accounting Standards to ensure comparability with domestic sector peers.

- 5 -3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet(Thousands of yen)
FY3/22(As of March 31, 2022)

FY3/23(As of March 31, 2023)

AssetsCurrent assets
Cash and deposits

9,612,726

8,598,633

Accounts receivable - trade

1,303,500

1,343,102

Lease receivables and investment assets

10,548,425

11,019,327

Operating loans

2,999,771

4,067,980－

2,988,214

Real estate for sale
Raw materials and supplies

15,817

12,360

Others103,617851,617

24,583,859

28,881,236

174,578,069

168,709,131(126,917,133)(126,575,490)

Buildings and structures, net

47,660,935

42,133,640

Machinery, equipment and vehicles

20,342,253

20,346,113(14,488,757)(15,136,070)

5,853,495

5,210,042

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

Accumulated depreciation and impairment loss

Machinery, equipment and vehicles, net

1,167,685

602,577

Accumulated depreciation and impairment loss

(906,910)(480,091)

Tools, furniture and fixtures, net

260,775

122,486

Land

13,386,664

10,805,148

Construction in progress

1,523,927

2,113,525

Total property, plant and equipment

68,685,798

60,384,843

Software544,968

413,782

Others19,31035,329Total intangible assets

564,279

449,1116,555,547

9,256,745

531－

1,240,345

652,032

Net defined benefit asset

232,963

198,748

Others614,955

590,759

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

Total investments and other assets

8,634,077

10,688,019

77,884,155

71,521,975

102,468,014

100,403,211

Tools, furniture and fixtures

Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets

Total non-current assets
Total assets- 6 -(Thousands of yen)
FY3/22(As of March 31, 2022)

FY3/23(As of March 31, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,778,043

1,691,141

Short-term loans payable

5,131,648

5,066,580

Accounts payable

1,705,873

1,230,829

Income taxes payable

813,465

79,273

Accrued expenses

106,714

94,608

Unearned revenue

1,095,026

1,022,220

144,825

152,00251,88031,400

7,605

179,322

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for removal cost of property, plant and equipment

216,114318,320

11,051,197

9,865,698

Bonds payable

6,100,000

6,100,000

Long-term loans payable

19,524,613

16,134,790

Long-term guarantee deposited

6,127,603

6,314,218

Long-term accounts payable-other
Provision for retirement benefits for directors (andother officers)
Deferred tax liabilities

256,789

179,994－

1,044

31,96841,363

Provision for removal cost of property, plant and equipment

183,851

115,447

3,885,762

4,281,762

OthersTotal current liabilities
Non-current liabilities

Asset retirement obligations

36,110,587

33,168,620

47,161,785

43,034,318

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,890

6,982,890

Retained earnings

38,799,813

39,660,392

Treasury stock(1,683,721)(1,630,050)

Total shareholders’ equity

50,925,081

51,839,332

1,714,018

2,063,074

62,452896,997

1,776,471

2,960,071

Subscription rights to shares

76,17850,330Non-controlling interests

2,528,497

2,519,158

Total net assets

55,306,229

57,368,892

102,468,014

100,403,211

Total non-current 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

Total liabilities and net assets- 7 -(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Remuneration for directors (and other officers)
Salaries and bonuses
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for retirement benefits for directors (andother officers)
Transportation and communication expenses
Depreciation
Taxes and dues
OthersTotal selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Commission fee
Foreign exchange gains
OthersTotal non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Removal cost of property, plant and equipment
Provision for removal cost
OthersTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of investment securities
Gain on sale of non-current assets
Consumption taxes refund
OthersTotal extraordinary income
Extraordinary loss
Loss on retirement of non-current assets
Loss on valuation of shares of subsidiaries
Loss on cancellation of golf club membership
Impairment loss
Total extraordinary loss
Income before income taxes
Income taxes
Income taxes – refund

FY3/22(April 1, 2021 – March 31, 2022)
23,777,481
18,405,354
5,372,127

FY3/23(April 1, 2022 - March 31, 2023)
25,516,472
20,903,046
4,613,426

264,873
598,044
98,305

233,913609,549
101,139

51,88031,400－1,044

63,08089,287
162,175
763,649
2,091,295
3,280,831

71,116
102,096
125,087
834,368
2,109,714
2,503,712

1
45,291
99,046
1,352
57,718203,411

1
76,66840,251－
58,189175,111309,779－
130,192
78,6633,425
522,060
2,962,181

287,600
163
153,168
110,918
5,389
557,239
2,121,583

456,060－－
6,775
462,835

11,721
480,066
315,363
25,011
832,162

266,392－－
1,463,674
1,730,066
1,694,950
980,641－－(177,130)803,511
891,43970,027
821,411

21,497
14,7603,000
735,551
774,808
2,178,937
63,215(19,004)
100,174
441,079
585,464
1,593,473
28,9891,564,483

Income taxes for prior periods
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 8 -(Consolidated Statements of Income)

ProfitFY3/22(April 1, 2021 – March 31, 2022)
891,439(Thousands of yen)
FY3/23(April 1, 2022 - March 31, 2023)
1,593,473

Other comprehensive income
Valuation difference on available-for-sale securities(340,139)

349,055

Foreign currency translation adjustment

527,433

834,544

Total other comprehensive income

187,293

1,183,600

1,078,732

2,777,073

Comprehensive income attributable to owners of parent

1,008,704

2,748,083

Comprehensive income attributable to non-controlling interests

70,02728,989Comprehensive income
Comprehensive income attributable to- 9 -(3) Consolidated Statements of Changes in Net Assets
For the Year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Thousands of yen)

Shareholders’equity

Balance at the beginning of current period

Capital stock

Capital surplus

6,826,100

6,982,890

Retainedearnings

38,680,850

Treasury stock

Total
shareholder'sequity(1,700,228)

50,789,611

Changes of items during the period
Dividends from surplus(698,963)(698,963)

Profit attributable to owners of parent

821,411

821,411Purchase of treasury stock
Disposal of treasury stock(3,484)

(113)

(113)

16,62013,135－－

118,963

16,506－－
135,470

6,826,100

6,982,890

38,799,813(1,683,721)

50,925,081

Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

Accumulated othercomprehensive income
Valuationdifference on
available-forsale securities
Balance at the beginning of current period

2,054,158

Subscription
Totalrightsaccumulated
to shares
othercomprehensive
income(464,980)
1,589,177
89,284Foreigncurrencytranslation
adjustment

Noncontrollinginterests

2,496,798

Total
net assets

54,964,872

Changes of items during the period
Dividends from surplus－(698,963)

Profit attributable to owners of parent－

821,411Purchase of treasury stock

－

(113)

Disposal of treasury stock
Net changes of items other than shareholders’ equity

13,135－(340,139)

527,433

187,293(13,105)

Total changes of items during the period(340,139)

Balance at the end of current period

1,714,018

527,433

187,293(13,105)

31,698341,356

62,452

1,776,471

76,1782,528,497

55,306,229- 10 -

31,698205,886

For the Year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Thousands of yen)

Shareholders’equity

Balance at the beginning of current period

Capital stock

Capital surplus

6,826,100

6,982,890

Retainedearnings

38,799,813

Treasury stock

Total
shareholder'sequity(1,683,721)

50,925,081

Changes of items during the period
Dividends from surplus(699,849)

Profit attributable to owners of parent

1,564,483(699,849)
1,564,483

Purchase of treasury stock
Disposal of treasury stock(4,054)

(114)

(114)

53,78549,731－

Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period－－

860,579

53,671

6,826,100

6,982,890

39,660,392(1,630,050)

914,250－
51,839,332

Accumulated othercomprehensive income
Valuationdifference on
available-forsale securities
Balance at the beginning of current period

Subscription
Totalrightsaccumulated
to shares
othercomprehensive
income62,452
1,776,471
76,178Foreigncurrencytranslation
adjustment

1,714,018

Noncontrollinginterests

2,528,497

Total
net assets

55,306,229

Changes of items during the period
Dividends from surplus－(699,849)

Profit attributable to owners of parent－

1,564,483

Purchase of treasury stock

－

(114)

Disposal of treasury stock－

49,731

Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

349,055

834,544

1,183,600(25,848)(9,339)1,148,412

349,055

834,544

1,183,600(25,848)(9,339)2,062,663

2,063,074

896,9972,960,071

50,3302,519,158

57,368,892- 11 -

(4) Consolidated Statements of Cash Flows(Thousands of yen)
FY3/22(April 1, 2021 –March 31, 2022)

FY3/23(April 1, 2022 –March 31, 2023)

Cash flows from operating activities
Income before income taxes

1,694,950

2,178,937

Depreciation

4,135,788

4,822,504

Impairment loss
Increase (decrease) in provision for removal cost of
property, plant and equipment
Decrease (increase) in net defined benefit asset
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for bonuses

1,463,674

735,551652

103,313(4,097)34,214－

1,044

15,013

7,177

Increase (decrease) in provision for directors’ bonuses

23,525(20,480)

Interest and dividend income(45,292)(76,670)

Share-based compensation expenses

28,59555,320Interest expenses

309,779

287,600

Loss on valuation of shares of subsidiaries－(456,060)(11,721)－(480,066)
3,000

Loss on retirement of non-current assets－
266,392

21,497

Decrease (increase) in notes and accounts receivable

70,417(39,602)59(2,990,731)

Loss (gain) on sale of investment securities
Loss (gain) on sales of non-current assets
Loss on cancellation of golf club membership

14,760Decrease (increase) in inventories
Net decrease (increase) in lease receivables andinvestment assets
Decrease (increase) in operating loans receivable

325,918

95,7881,025,968(601,525)

Increase (decrease) in notes and accounts payable

698,405(86,959)

Increase (decrease) in unearned revenue(8,224)(75,697)

Increase (decrease) in accrued expenses

8,814(9,828)(376,407)

180,091

Decrease (increase) in other assets

23,649(254,491)

Increase (decrease) in other liabilities

Increase (decrease) in accrued consumption taxes(127,144)(75,870)

Others－(253,060)

Subtotal

9,074,376

3,564,096

Interest and dividends received
Interest paid

45,292(315,854)

76,670(291,753)

Income taxes paid

(336,090)(1,331,719)

Net cash provided by operating activities

8,467,723

2,017,293(957,793)(2,180,999)－(31,186)

5,517,177(2,204,040)

529,022

27,6292,639

20,903－400(11,668)

7,727

29,000(449,190)

1,198,401

Cash flows from investing activities
Purchase of non-current assets
Proceeds from sale of non-current assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from distributions from investment
partnerships
Payments of leasehold and guarantee deposits
Proceeds from collection of long-term loans receivable
OthersNet cash provided by (used in) investing activities- 12 -

400

(Thousands of yen)
FY3/22(April 1, 2021 –March 31, 2022)

FY3/23(April 1, 2022 –March 31, 2023)

Increase in short-term loans payable

1,100,000

2,200,000

Decrease in short-term loans payable(1,100,000)(2,200,000)

Cash flows from financing activities

Proceeds from long-term debt

1,074,218

509,028

Payments of long-term debt

(5,419,572)(4,367,244)

Proceeds from guarantee deposits received

103,894565,221

Repayments of guarantee deposits received(139,506)(378,606)

Proceeds from sales of treasury stock

30

53

Purchase of treasury stock

(113)

(114)

Payment of cash dividends(698,532)(700,181)

Cash dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change
in scope of consolidation(38,329)(38,329)－(50,000)

Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents(5,117,911)(4,460,173)

128,923

230,384

Net increase in cash and cash equivalents

3,029,544(1,014,093)

Cash and cash equivalents at beginning of period

6,583,181

9,612,726

Cash and cash equivalents at end of period

9,612,726

8,598,633- 13 -

(Segment Information, etc.)[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 and evaluate
their performances.
The Company’s head office develops comprehensive business strategies of each segment and pursues business activities.
The Company is, therefore, composed of three business segments with different services determined by the head office asfollows: “Real Estate Business,” “Area Heating & Cooling Business”, and “Water Supply & Drainage Service and Other
Business.”“Real Estate Business” leases office buildings, “Area Heating & Cooling Business” supplies cooling and heating services,and “Water Supply & Drainage Service and Other Business” operate and manage waterworks, drainage, and sharedtelecommunications network business.
2. Method of calculations of sales, profit (loss), assets, liabilities, and other items by reportable segments
Accounting treatments applied to reportable segments are, in general, consistent with those described in “Significant Basis for
Preparation of Consolidated Financial Statements.”
Inventories are valued at amount before write-off of book value to reflect decline in profitability.
Segment income is based on operating income.
Intersegment sales and transfers are based on prevailing market price.
3. Sales, profit, assets, liabilities, and other items by reportable segments
Fiscal year ended March 2022 (April 1, 2021 – March 31, 2022)(Thousands of yen)
Reportable Segment
Area Heating &Real Estate
Cooling
Business
Business

Water Supply &Drainage
Service andOther Business

Total

Carrying Amounton Consolidated
Statements ofIncomeAdjustments(Note)Net sales
Net sales to outside
customers

18,845,473

2,957,070

1,974,937

23,777,481－

23,777,481

Inter-segment
net sales/transfers

257,068

743,993

221,901

1,222,962(1,222,962)－

19,102,541

3,701,064

2,196,838

25,000,444(1,222,962)

23,777,481

Segment income (loss)

2,862,742

452,032(33,944)

3,280,831－

3,280,831

Segment assets

80,077,526

8,589,700

1,130,227

89,797,455

12,670,559

102,468,014

42,213,706

2,262,713

130,561

44,606,980

2,554,804

47,161,785

Depreciation andamortization

3,351,864

576,646

117,989

4,046,500

89,287

4,135,788

Increase in property, plantand equipment andintangible assets

5,253,129

252,736

12,437

5,518,303

7,273

5,525,577

Total

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

- 14 -

Fiscal Year Ended March 2023 (April 1, 2022 - March 31, 2023)(Thousands of yen)
Reportable Segment
Area Heating &Real Estate
Cooling
Business
Business

Water Supply &Drainage
Service andOther Business

Total

Carrying Amounton Consolidated
Statements ofIncomeAdjustments(Note)Net sales
Net sales to outside
customers

19,730,747

3,412,048

2,373,676

25,516,472－

25,516,472

Inter-segment
net sales/transfers

261,121874,572

239,834

1,375,528(1,375,528)－

19,991,868

4,286,621

2,613,510

26,892,000(1,375,528)

25,516,472

Segment income

2,172,494

225,002106,215

2,503,712－

2,503,712

Segment assets

76,148,165

8,344,325

1,098,774

85,591,265

14,811,945

100,403,211

Segment liabilities

38,756,103

2,042,272

222,534

41,020,910

2,013,408

43,034,318

Depreciation andamortization

4,041,255

571,152

107,999

4,720,407

102,096

4,822,504

Increase in property, plantand equipment andintangible assets

1,338,022

578,480

17,5901,934,093

7,413

1,941,506

Total

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

- 15 -