July 30, 2020

Financial Results for the First Quarter of the Year Ending March 31, 2021 [J-GAAP](Consolidated)
Company Name:AIRPORT FACILITIES CO., LTD. (AFC)Stock Exchange Listed on:
Tokyo Stock Exchange (First Section)
Company Code:8864
URL: http://www.afc.jp
Representative: Masaaki Kai, 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 3, 2020
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 2021 (April 1, 2020 - June 30, 2020)(1) Consolidated Business Results(Percentages are changes from the same period of the previous year.)
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
First three months ended

Millions of yen

June 30, 2020
June 30, 2019

% Millions of yen

5,932
6,109

(2.9)
4.2(Note) Comprehensive income:First three months ended% Millions of yen

1,185
1,219(2.8)
11.2First three months ended June 30, 2020:
First three months ended June 30, 2019:

Basic earnings pershare

(4.3)
25.8

648 million yen
574 million yen

%

707
768

(8.0)
35.9(12.7%)(11.2 %)

Diluted earnings
per share

Yen

June 30, 2020
June 30, 2019

% Millions of yen

1,182
1,236

Yen

14.18
15.44

14.13
15.38

(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, 2020
As of March 31, 2020

106,136
104,483

56,59456,33350.9
51.5

1,084.85
1,080.48(Reference) Equity capital:

As of June 30, 2020: 54,072 million yen

As of March 31, 2020: 53,854 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, 2020
FY ending March 31, 2021
FY ending March 31, 2021 (Forecasts)(Note) Changes in the latest forecasts released: No

3. Forecast of Consolidated Earnings for the Year Ending March 2021 (April 1, 2020 - March 31, 2021)(Percentages are changes from the same period of the previous year.)

Operating income

Net salesFirst half
Full fiscal year

Millions of yen

12,59025,690%

0.2
3.3

Millions of yen

2,010
3,960%(19.8)(5.3)

Profit attributable to Basic earnings
owners of parent
per share

Ordinary income
Millions of yen

1,850
3,210%(23.8)(15.5)

Millions of yen

760
1,310%(50.3)(41.1)

Yen

15.24
26.28

(Note) Changes in the latest forecasts released: No*The above forecasts incorporate the impact of the spread of the novel coronavirus infection based on the currently available estimate, but theyare subject to change depending on the future development.

- 1 -＊ Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting from changes in scope ofconsolidation): 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)” onpage 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.: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Restatement of revisions: No(4) Number of issued shares (common shares)
1) Number of issued shares
As of June 30, 2020:(including treasury stock)2) Number of treasury stock
As of June 30, 2020:
3) Average number of shares during First three months ended
the period
June 30, 2020:

52,979,350 shares As of March 31, 2020:

52,979,350 shares

3,136,237 shares As of March 31, 2020:

3,136,206 shares

49,843,113 shares First three months ended
June 30, 2019:49,759,571 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, 2020 (3) Qualitative Information onConsolidated Earnings Forecast”.

- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended June 30, 2020

(1) Explanation about Business Results
During the three months ended June 30, 2020, the Japanese economy continued to experience an unprecedented economic
downturn around the world due to the pandemic of the novel coronavirus. Following the issuance of a state of emergency
by the Japanese government in early April, people increasingly started to refrain from going out, resulting in a significant
decrease in personal consumption such as travel and dining out as well as export and production. Although the state ofemergency was lifted in late May and the government-led initiatives to resume economic activities have been underway
along with the measures to prevent the spread of the infection, there are concerns over the second wave and the situation
remains uncertain for the time being.
In the aviation industry, both international and domestic flights continued to be reduced or suspended, and passenger
demand for travel and business trip including foreign passengers visiting Japan dropped drastically. After the state ofemergency was lifted, there have been a movement to restore service in certain domestic flights as well as those by thegovernment to boost demand for domestic travel and ease travel ban. However, due to the concern that the impact of thenovel coronavirus infection may be prolonged, the airline companies expect that severe business environment will continue.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of ¥5,932
million (down 2.9% from the same period of the previous fiscal year) due to a decrease in sales of Water Supply & Drainage
Service because of the impact of the novel coronavirus despite the start of the operation of new facilities completed in thefiscal year ended March 31, 2020. Operating income was ¥1,185 million (down 2.8%), ordinary income was ¥1,182 million(down 4.3%) and profit attributable to owners of parent was ¥707 million (down 8.0%).
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥4,738 million (up 2.2% from the same period of the previous fiscal year) due tothe start of operation of a new warehouse building of the Technical Center, an in-flight meal factory in ARC Building atTokyo International Airport, and the new extended hangar at Kobe Airport completed after December 2019. Operatingincome was ¥907 million (up 0.1%).
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport Heating & Cooling Co., Ltd.
recorded net sales of ¥756 million (up 0.6% from the same period of the previous fiscal year), which was only a slightincrease due to a decrease in demand because of the impact of the novel coronavirus and cool outside temperature despite
the operation of new facilities in certain customers. Operating income was ¥323 million (up 40.9%) due to reductions inrepair expenses and raw material costs.
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥437 million (down 39.5% from the same periodof the previous fiscal year) due to a significant decrease in water supply and drainage usage as a result of a sharp decline in
the number of airport users triggered by the impact of the novel coronavirus, and recorded an operating loss of ¥46 million(operating income of ¥83 million in the same period of the previous fiscal year).

(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of June 30, 2020 amounted to ¥106,136 million, an increase by ¥1,652 million compared to March 31, 2020,
due to an increase in advance payment associated with a construction work of a new dormitory for international students
in Kanto Gakuin University to be completed in March 2021, which was included in others in current assets, and also due torecording of prepaid expenses for annual usage fee of national property.
(Liabilities)
Liabilities as of June 30, 2020 amounted to ¥49,542 million, an increase by ¥1,392 million from March 31, 2020, due torecording of accrued expenses for annual usage fee of national property.
(Net assets)
Net assets as of June 30, 2020 increased by ¥260 million compared to March 31, 2020 to ¥56,594 million mainly due to anincrease in retained earnings.
As a result, equity ratio as of June 30, 2020 decreased by 0.6 points to 50.9% compared to March 31, 2020.

- 3 -(3) Qualitative Information on Consolidated Earnings Forecast
There is no change in the Consolidated Earnings Forecast for the Year Ending March 31, 2021 which was announced in theFinancial Results for the Year Ended March 31, 2020 [J-GAAP] dated May 14, 2020, but it is subject to change depending
on future developments of the novel coronavirus infection.

- 4 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY3/20(As of March 31, 2020)

First quarter of FY3/20(As of June 30, 2020)

AssetsCurrent assets
Cash and deposits

6,518,663

4,243,970

Notes and accounts receivable-trade

1,267,240

1,748,455

Lease receivables and investment assets7,286,793

6,925,263

Operating loans

4,918,584

4,695,195

11,09912,757

Others2,240,924

7,071,556

Total current assets

22,243,308

24,697,198

Buildings and structures, net

50,412,649

49,645,636

Machinery, equipment and vehicles, net

6,365,786

6,189,186

420,294

387,354

Land

14,902,098

14,902,098

Construction in progress

1,537,155

1,709,699

Total property, plant and equipment

73,637,983

72,833,974

Software249,722

236,902

Software in progress

335,029

341,442

Others

15,21915,174

Total intangible assets

599,972593,519

6,545,514

6,567,694

Raw materials and supplies

Non-current assets
Property, plant and equipment

Tools, furniture and fixtures, net

Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable

1,332

1,231

Deferred tax assets

700,505

693,790

Net defined benefit asset

149,523

138,831

Others616,108

620,801

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

Total investments and other assets

8,002,716

8,012,083

82,240,672

81,439,577

104,483,980

106,136,775

Total non-current assets
Total assets- 5 -(Thousands of yen)
FY3/20(As of March 31, 2020)

First quarter of FY3/21(As of June 30, 2020)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,117,627

732,152

Short-term loans payable

6,642,749

7,190,279

Accounts payable

935,285

642,534

Income taxes payable

567,586

449,448

Accrued expenses

788,460

4,716,250

Unearned revenue

1,117,907

1,156,171

Provision for bonuses

135,083

75,531

Provision for directors’ bonuses

26,715

14,177

Provision for removal cost of property, plant and equipment

226,392

164,892

Others

330,139457,178

11,887,946

15,598,616

Bonds payable

6,000,000

6,000,000

Long-term loans payable

23,402,486

21,192,198

Long-term guarantee deposited

6,286,570

6,268,824

Long-term accounts payable-otherTotal current liabilities
Non-current liabilities

326,067

239,294

Provision for directors’ retirement benefits

2,436

－

Deferred tax liabilities

16,311

14,911

Provision for removal cost of property, plant and equipment

190,804

190,804

Others37,96537,96536,262,641

33,943,997

48,150,58749,542,614

6,826,100

6,826,100

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus

6,982,890

6,982,890

Retained earnings

40,315,327

40,673,533

Treasury stock(1,737,829)(1,737,841)

Total shareholders’ equity

52,386,487

52,744,682

Valuation difference on available-for-sale securities

1,682,442

1,697,657

Foreign currency translation adjustment(214,202)(369,610)

Total accumulated other comprehensive income

1,468,239

1,328,046

Subscription rights to shares

94,722

94,722

Non-controlling interests

2,383,942

2,426,708

Accumulated other comprehensive income

Total net assets
Total liabilities and net assets- 6 -56,333,393

56,594,161

104,483,980

106,136,775

(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 FY3/20(April 1, 2019 – June 30, 2019)

First three months of FY3/21(April 1, 2020 – June 30, 2020)

6,109,873

5,932,544

Cost of sales

4,370,878

4,274,026

Gross profit

1,738,994

1,658,518

Net sales

Selling, general, and administrative expenses
Directors’ compensations

76,962

69,687

Salaries and bonuses

118,584

121,735

Provision for bonuses

45,20747,496

Provision for directors’ bonuses
Provision for retirement benefits for directors (andother officers)
Transportation and communication expenses

13,743

14,177348

348

23,223

15,135

Depreciation

5,528

6,759

Taxes and dues

50,472

49,843

Others185,130

148,019

Total selling, general, and administrative expenses

519,201

473,201

1,219,793

1,185,316

Dividends income

138,660

28,114

Commission fee

1,360

7,713

－

4,409

Operating income
Non-operating income

Foreign exchange gains
Gain on reversal of provision for removal cost ofproperty, plant and equipment
Others－39,00016,82916,469Total non-operating income

156,850

95,707

Interest expenses

104,697

94,803

Removal cost of property, plant and equipment

20,011536

Foreign exchange losses

14,064－

Others

1,449

3,461

140,223

98,8001,236,420

1,182,223

Insurance income

－

7,148

Total extraordinary income

－

7,148

Loss on retirement of non-current assets－0Loss on disaster－13,376

Total extraordinary loss

－13,376

Income before income taxes

1,236,420

1,175,996

Income taxes

412,310

387,792

Profit824,110

788,203

Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss

Profit attributable to non-controlling interests

55,44381,095

Profit attributable to owners of parent

768,666

707,108- 7 -(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of yen)First three months of FY3/20(April 1, 2019 – June 30, 2019)

First three months of FY3/21(April 1, 2020 – June 30, 2020)

824,110788,203

ProfitOther comprehensive income
Valuation difference on available-for-sale securities(303,704)

15,21454,380(155,408)(249,324)(140,193)

574,786

648,010Comprehensive income attributable to owners of parent

519,342566,915

Comprehensive income attributable to non-controlling interests

55,44381,095

Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to- 8 -(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)
Not applicable.
(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 to income
before income taxes for the consolidated fiscal year including the period ended June 30, 2020.
(Additional information)(Impacts of the novel coronavirus on the accounting estimates)
During the three months ended June 30, 2020, there was no material change in the impact of the novel coronavirus
infection on the accounting estimates described in the Annual Securities Report for the year ended March 31, 2020.

- 9 -