Financial Results for the First Quarter of the Year Ending March 31,2022

July 29, 2021

Financial Results for the First Quarter of the Year Ending March 31, 2022 [J-GAAP](Consolidated)
Company Name:AIRPORT FACILITIES CO., LTD. (AFC)Stock Exchange Listed on:
Tokyo Stock Exchange (First Section)
Company Code:8864
URL: https://www.afc.jp
Representative: Toshiaki Norita, President and CEO
Inquiries: Takahiro Hama, Corporate Officer, General Manager of Accounting Dept. TEL: +81-3-3747-0251
The Date of Filing the Quarterly Securities Report:
August 2, 2021
The Date of the Dividend Payment Start:－
Preparation of Quarterly Earnings Presentation Material:
No
Holding of Quarterly Earnings Announcement:
No(Figures are rounded off to the nearest million yen.)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2022 (April 1, 2021 - June 30, 2021)(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
First three months ended

Millions of yen% Millions of yen

5,792
5,932

June 30, 2021
June 30, 2020

(2.3)
(2.9)

(Note) Comprehensive income:% Millions of yen

1,048
1,185

(11.5)(2.8)

First three months ended June 30, 2021:
First three months ended June 30, 2020:

Basic earnings per
shareFirst three months ended

June 30, 2021
June 30, 2020

% Millions of yen

1,014
1,182

(14.1)(4.3)

848 million yen
648 million yen

%

641
707

(9.2)
(8.0)

30.9%
12.7 %

Diluted earnings
per share

Yen

Yen

12.85
14.18

12.80
14.13

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of June 30, 2021
As of March 31, 2021

103,600
100,429

55,42554,96450.9
52.1

1,058.58
1,049.44(Reference) Equity capital:

As of June 30, 2021: 52,834 million yen

As of March 31, 2021: 52,378 million yen

2. Dividends
Dividends per share

Q1

Q2

Q3

Q4

Annual

Yen

Yen

Yen

Yen

Yen

－
－

7.00

－

7.00

14.00

7.00

－

7.00

14.00

FY ended March 31, 2021
FY ending March 31, 2022
FY ending March 31, 2022 (Forecasts)(Note) Changes in the latest forecasts released: No

3. Forecast of Consolidated Earnings for the Year Ending March 2022 (April 1, 2021 - March 31, 2022)(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%

12,23024,262

0.4
0.4

1,852
3,349

(17.6)(12.5)

Profit attributable toowners of parent

Ordinary income
Millions of yen(Note) Changes in the latest forecasts released: No- 1 -Basic earnings
per share%

Millions of yen%

Yen

1,607 (25.3)
2,633 (27.2)

1,011
1,610

4.0
―

20.25
32.25

Financial Results for the First Quarter of the Year Ending March 31,2022＊ Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting from changes in scope of
consolidation): No(2) Application of specific accounting treatments in preparing the quarterly consolidated financial statements: Yes
Note: For details, please refer to “2. Quarterly Consolidated Financial Statements and Major Notes (3) Notes on Quarterly Consolidated
Financial Statements (Application of Specific Accounting Treatments in Preparing the Quarterly Consolidated Financial Statements)” on
page 9.

(3) 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
Note: For details, please refer to “2. Quarterly Consolidated Financial Statements and Major Notes (3) Notes on Quarterly
Consolidated Financial Statements (Changes in Accounting Policies)” on page 9.
(4) Number of issued shares (common shares)
1) Number of issued shares
As of June 30, 2021:(including treasury stock)2) Number of treasury stock
As of June 30, 2021:
3) Average number of shares during First three months ended
the period
June 30, 2021:

52,979,350 shares As of March 31, 2021:

52,979,350 shares

3,068,347 shares As of March 31, 2021:

3,068,347 shares

49,911,003 shares First three months ended
June 30, 2020:

49,843,113 shares* Financial Results report is outside the scope of a quarterly review by certified public accountants or an audit corporation.
* 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 4 “1. Qualitative Information on Consolidated Financial Results for the Quarter Ended June 30, 2021 (3) Qualitative Information on
Consolidated Earnings Forecast”.

- 2 -Financial Results for the First Quarter of the Year Ending March 31,2022

1. Qualitative Information on Consolidated Financial Results for the Quarter Ended June 30, 2021
(1) Explanation about Business Results
During the three months ended June 30, 2021, Japanese economy continued to experience severe situation due to a resurgence of
COVID-19 although it showed some signs of recovery. The third state of emergency issued to Tokyo and Kansai areas in late April
2021, which was later expanded to other areas and extended, was lifted in late June in nine prefectures excluding Okinawa, bu t
personal consumption remained weak during such period mainly in the service industries including travel and restaurants.
Vaccinations at some companies and universities started in late June in addition to those by the national and local governmen ts,
raising hopes that it would stop the spread of infections. However, the infections continued to spread, resulting in the fourth state of
emergency issued in early July to Tokyo where the number of new cases surged, and the situation remains uncertain.
In the aviation industry, both international and domestic flights continued to be reduced or suspended, and passenger deman dremained low throughout the period even during the Golden Week holidays although it recovered from a year earlier. Whilevaccination is expected to progress going forward, people are likely to be asked to refrain from traveling or returning home mainly
in areas under the state of emergency or quasi-state of emergency during the Tokyo 2020 Olympic and Paralympic Games as wellas summer vacation season, which will reduce the chance of rapid recovery in passenger demand, forcing airline companies andaviation-related companies to face tough business conditions for a while.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of ¥5,792 million(down 2.3% from the same period of the previous fiscal year) as the estimated debt forgiveness of rent receivables from airline
companies in support of those facing financial difficulties due to the prolonged COVID-19 pandemic was deducted from net sales,
despite the operation of new facilities completed in the fiscal year ended March 31, 2021. Operating income was ¥1,048 million(down 11.5%), ordinary income was ¥1,014 million (down 14.1%), and profit attributable to owners of parent was ¥641 million(down 9.2%). (For the fiscal year ended March 31, 2021, debt forgiveness of rent receivables was recorded as extraordinary loss inthe six months ended September 30, 2020. If loss attributable to the three months ended June 30, 2020 had been deducted from net
sales in the same manner as this year, net sales and profit attributable to owners of parent for the three months ended June 30, 2020
would have been ¥5,566 million and ¥451 million, respectively.)
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥4,674 million (down 1.3% from the same period of the previous fiscal year) as debt
forgiveness of rent receivables to support airline companies was deducted from net sales, despite the operation of a dormitory forinternational students completed in March 2021. Operating income was ¥869 million (down 4.2%).
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport Heating & Cooling Co., Ltd. recorded
net sales of ¥656 million (down 13.2% from the same period of the previous fiscal year) as debt forgiveness of heat charge
receivables to support airline companies was deducted from net sales while sales results remained almost unchanged. Operating
income was ¥188 million (down 41.9%).
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥461 million (up 5.3% from the same period of theprevious fiscal year) as water supply and drainage usage showed some recovery compared to a year earlier when the number of
airport users dropped sharply due to the spread of COVID-19, and recorded an operating loss of ¥9 million (operating loss of ¥46
million in the same period of the previous fiscal year).

(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of June 30, 2021 amounted to ¥103,600 million, an increase by ¥3,170 million compared to March 31, 2021,
mainly due to recording of prepaid expenses for annual usage fee of national property.
(Liabilities)
Liabilities as of June 30, 2021 amounted to ¥48,174million, an increase by ¥2,710 million from March 31, 2021, mainly
due to recording of accrued expenses for annual usage fee of national property.

- 3 -Financial Results for the First Quarter of the Year Ending March 31,2022(Net assets)
Net assets as of June 30, 2021 increased by ¥460 million compared to March 31, 2021 to ¥55,425 million mainly due toan increase in retained earnings.
As a result, equity ratio as of June 30, 2021 decreased by 1.2 points to 50.9% compared to March 31, 2020.
(3) Qualitative Information on Consolidated Earnings Forecast
There is no change in the Consolidated Earnings Forecast for the Year Ending March 31, 2022 which was announced in the
Financial Results for the Year Ended March 31, 2021 [J-GAAP] (Consolidated) dated May 15, 2021.

- 4 -Financial Results for the First Quarter of the Year Ending March 31,2022

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY3/21(As of March 31, 2021)

First quarter of FY3/22(As of June 30, 2021)

AssetsCurrent assets
Cash and deposits

6,583,181

6,766,591

Notes and accounts receivable-trade

1,373,918

1,763,023

Lease receivables and investment assets

10,502,602

10,650,325

Operating loans

3,586,074

3,553,761

Raw materials and supplies

15,877

15,691Others146,132

3,790,379

22,207,786

26,539,773

Buildings and structures, net

46,577,715

45,779,328

Machinery, equipment and vehicles, net

6,400,593

6,240,744

310,636

288,864

Land

13,985,705

13,985,705

Construction in progress

1,416,281

1,437,881

Total property, plant and equipment

68,690,931

67,732,523

Software202,364

307,410

Software in progress

463,525

319,547

Others19,813

19,687

Total intangible assets

685,702646,645

7,092,761

6,869,058

Total current assets
Non-current assets
Property, plant and equipment

Tools, furniture and fixtures, net

Intangible assets

Investments and other assets
Investment securities

931

831

Deferred tax assets

906,445979,754

Net defined benefit asset

228,866

218,216

Others626,255

623,746

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

Total investments and other assets

8,844,993

8,681,340

78,221,628

77,060,509

100,429,415

103,600,283

Long-term loans receivable

Total non-current assets
Total assets- 5 -Financial Results for the First Quarter of the Year Ending March 31,2022(Thousands of yen)
FY3/21(As of March 31, 2021)

First quarter of FY3/22(As of June 30, 2021)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,079,625

517,523

Short-term loans payable

6,325,177

4,818,122

Accounts payable

1,131,097

597,460

156,069

370,737

Accrued expenses

102,8024,821,412

Unearned revenue

1,100,926

1,191,063

Provision for bonuses

129,81277,271

Provision for directors’ bonuses

28,355

14,440

Provision for removal cost of property, plant and equipment

78,01178,011Others386,666

605,023

10,518,542

13,091,064

Bonds payable

6,100,000

6,100,000

Long-term loans payable

22,287,170

22,433,573

Long-term guarantee deposited

6,163,216

6,178,529

Long-term accounts payable-other

260,254234,112Deferred tax liabilities

22,566

24,506

Provision for removal cost of property, plant and equipment

112,793

112,793

34,946,000

35,083,515

45,464,542

48,174,580

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,890

6,982,890

Income taxes payable

Total current liabilities
Non-current liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Retained earnings

38,680,850

38,972,945

Treasury stock(1,700,228)(1,700,228)

Total shareholders’ equity

50,789,611

51,081,706

Valuation difference on available-for-sale securities

2,054,158

1,888,053

Foreign currency translation adjustment(464,980)(134,935)

Total accumulated other comprehensive income

1,589,177

1,753,118

Subscription rights to shares

89,28489,284Non-controlling interests

2,496,798

2,501,593

Total net assets

54,964,872

55,425,702

100,429,415

103,600,283

Accumulated other comprehensive income

Total liabilities and net assets- 6 -Financial Results for the First Quarter of the Year Ending March 31,2022(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of yen)First three months of FY3/21(April 1, 2020 – June 30, 2020)

First three months of FY3/22(April 1, 2021 – June 30, 2021)

Net sales

5,932,544

5,792,661

Cost of sales

4,274,026

4,185,308

Gross profit

1,658,518

1,607,353

Directors’ compensations

69,687

63,180

Salaries and bonuses

121,735

136,137

Provision for bonuses

47,49650,748Provision for directors’ bonuses
Provision for retirement benefits for directors (andother officers)
Transportation and communication expenses

14,177

14,440348－

15,135

15,582

Selling, general, and administrative expenses

Depreciation

6,759

7,944

Taxes and dues

49,84350,336

Others148,019

220,837

473,201

559,205

1,185,316

1,048,147

Dividends income

28,11434,472

Commission fee

7,713

2,068

Foreign exchange gains
Gain on reversal of provision for removal cost of
property, plant and equipment
Others

4,409

1,612

39,000－16,46914,098

Total non-operating income

95,70752,252

94,803

83,267536

2,616

Total selling, general, and administrative expenses
Operating income
Non-operating income

Non-operating expenses
Interest expenses
Removal cost of property, plant and equipment
Others3,461

10

Total non-operating expenses

98,80085,894

1,182,223

1,014,505

Insurance income

7,148

－

Total extraordinary income

7,148

－

0

1,785

13,376－

Ordinary income
Extraordinary income

Extraordinary loss
Loss on retirement of non-current assets
Loss on disaster
Total extraordinary loss

13,376

1,785

Income before income taxes

1,175,996

1,012,720

Income taxes

387,792

328,124

Profit788,203

684,595

Profit attributable to non-controlling interests

81,095

43,123

Profit attributable to owners of parent

707,108

641,471- 7 -Financial Results for the First Quarter of the Year Ending March 31,2022(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of yen)First three months of FY3/21(April 1, 2020 – June 30, 2020)

First three months of FY3/22(April 1, 2021 – June 30, 2021)

788,203

684,595

15,214(166,104)

Foreign currency translation adjustment(155,408)

330,045

Total other comprehensive income(140,193)

163,940

648,010

848,536

Comprehensive income attributable to owners of parent

566,915805,412Comprehensive income attributable to non-controlling interests

81,095

43,123

ProfitOther comprehensive income
Valuation difference on available-for-sale securities

Comprehensive income
Comprehensive income attributable to- 8 -Financial Results for the First Quarter of the Year Ending March 31,2022(3) Notes on Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Notes on Significant Changes in Shareholders’ Equity)
Not applicable.
(Changes in Accounting Policies)(Application of the accounting standard for revenue recognition)
On April 1, 2021, the Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29,
March 31, 2020, “Accounting Standard for Revenue Recognition”), etc., and recognizes revenue at an amount that it
expects to receive in exchange for the promised goods or services when the control of the goods or services is transferred
to a customer. The variable portion of the promised consideration is deducted from net sales.
However, the Company applied the method stipulated by Paragraph 86 of the Accounting Standard for Revenue
Recognition and did not retrospectively apply the new accounting policy to contracts for which almost all revenue wererecognized prior to April 1, 2021 according to the previous treatment.
As a result, net sales, operating income, ordinary income, and income before income taxes for the three months ended
June 30, 2021 decreased by ¥108,816 thousand, respectively.
Also, pursuant to the transitional treatment stipulated by Paragraph 28-15 of the “Accounting Standard for Quarterly
Financial Reporting” (ASBJ Statement No. 12, March 31, 2020), the Company did not disclose information on the
breakdown of revenue from contracts with customers for the three months ended June 30, 2020.
(Application of the accounting standard for fair value measurement)
On April 1, 2021, the Company applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement
No.30, July 4, 2019, “Accounting Standard for Fair Value Measurement”), etc., and the new accounting policies
stipulated in the Accounting Standard for Fair Value Measurement, etc. are applied prospectively pursuant to thetransitional treatment stipulated by Paragraph 19 of the Accounting Standard for Fair Value Measurement andParagraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). The
application has no impact on the quarterly consolidated financial statements.
(Application of Specific Accounting Treatments in Preparing the Quarterly Consolidated Financial Statements)
Tax expenses are calculated as income before income taxes for the period multiplied by the estimated effective tax rate.
The effective tax rate is reasonably estimated taking into consideration deferred tax accounting as the rate applicable toincome before income taxes for the consolidated fiscal year including the period ended June 30, 2021.
(Additional information)(Impacts of COVID-19 on the accounting estimates)
During the three months ended June 30, 2021, there was no material change in the impact of COVID-19 on theaccounting estimates described in the Annual Securities Report for the year ended March 31, 2021.

- 9 -