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

Results Briefing for Fiscal Year
Ended in March 2022
May 26, 2022
AFC Group

AIRPORT FACILITIES CO., LTD.

Table of contents

I.

Outline of the consolidated financial
statements for the fiscal year that
ended in March 2022

・・・

p. 2

II.

Forecast on the consolidated
performance for the fiscal year endingin March 2023

・・・

p. 12・・・

Separatematerial

III. New Medium- to Long-Term
Management Plan

Airport Facilities Co.,Ltd.

1

AIRPORT FACILITIES CO., LTD.

I.

Outline of the consolidated financial statements forthe fiscal year that ended in March 2022

II.

Forecast on the consolidated performance for thefiscal year ending in March 2023

III.

New Medium- to Long-Term Management Plan

Airport Facilities Co.,Ltd.

2

Outline of the consolidated financial statements
for the fiscal year that ended in March 2022

Consolidated PL While there were factors for an increase in net sales, we implemented the exemption of rent for air carriers,etc. similarly to the previous fiscal year. Also, while the exemption was reported as an extraordinary loss inthe previous fiscal year, it was deducted from sales for the fiscal year that ended in March 2022.
 According to the policy of selling properties rented for hotels in Kyoto, extraordinary loss (impairment loss)
was recorded.
Unit: million yen

Net sales
30,000Year on year
-378 million yen (-1.5%)

24,155(22,784)*

24,262Compared to outlook-485 million yen (-2.0%)
23,777

Operatingincome

Year on year
-551 million yen (-14.3%)

4,000

3,831

3,000(2,460)*

20,0003,349

Compared to outlook-69 million yen (-2.1%)
3,280

2,000
10,0001,00000FY2020 (results) FY2021 (forecast) FY2021 (results)

FY2020 (results) FY2021 (forecast) FY2021 (results)

Ordinary
income4,000
3,000

Year on year
-655 million yen (-18.1%)

Compared to outlook+329 million yen (12.5%)

3,617(2,247)*

Current
profitYear on year
+1,754 million yen

1,610

2,000
2,633

2,96201,000-1,0000
FY2020 (results) FY2021 (forecast) FY2021 (results)

821

1,000

2,000

Compared to outlook-789 million yen (-49.0%)-933
FY2020 (results) FY2021 (forecast) FY2021 (results)* Exemptions of rent that had not been reported as an extraordinary loss but was deducted from sales in the fiscal year that ended in March
2021 are shown in blue shade in the chart.
Airport Facilities Co.,Ltd.

3

Outline of the consolidated financial statements
for the fiscal year that ended in March 2022

While the full-year operation of Kanazawa-Hakkei International
Community Plaza and the rent of ALPINE Koshigaya started,
the business was affected by rent exemption.

Real estatebusiness

Net sales
Operating income

Net sales
20,00018,940

Performance bybusiness segment

18,845 million yen (year on year -0.5%)
2,862 million yen (year on year -2.0%)

Operating income
18,84518,000
3,000

2,922

2,862

16,0002,500

14,00012,0002,000

10,000
1,500

8,000

6,000

1,000

4,000

500

2,0000

FY2020 (results)<Major factors for increase/decrease>

3,500

FY2021 (results)
Unit: million yen

0

FY2020 (results)

FY2021 (results)[Net sales and operating income](+) Full-year operation of KanazawaHakkei International Community
Plaza(+) Start of the rent of ALPINE
Koshigaya(-) Exemption of rent(-) Change of account processingmethod* Exemption is changed fromextraordinary loss to deduction fromsales.

Unit: million yen

Airport Facilities Co.,Ltd.

4

Outline of the consolidated financial statements
for the fiscal year that ended in March 2022
Kanazawa-Hakkei International Community Plaza

Use

Location

Students' dormitory (3F - 6F)
Commercial tenants' space (1F - 2F)* Tenants include drugstores and clinics, etc.
1-14-12 Mutsuura, Kanazawa-ku,
Yokohama City, Kanagawa Prefecture

Performance bybusiness segment

ALPINE Koshigaya

UseLocation

Stores (1st floor)
Office (2nd floor)
5-256-1 Miyamoto-cho, Koshigaya City,
Saitama Prefecture

Area

Total floor area) 9,582 m2

Area

Total floor area) 651 m2

Provided
toKanto Gakuin University,each commercial tenant

Provided
toAlpine News Co., Ltd.

Airport Facilities Co.,Ltd.

5

Outline of the consolidated financial statements
for the fiscal year that ended in March 2022

Area heating andcooling businessAlthough sales performance increased slightly, net sales
decreased due to the exemption of heating charge claimscaused by the COVID-19 pandemic. In addition, there was theimpact of rising fuel costs.
Net sales
Operating income

Net sales2,957 million yen (year on year -12.5%)452 million yen (year on year -58.8%)

Operating income

4,000
3,500

Performance bybusiness segment

1,200<Major factors for increase/decrease>

1,097

3,379
2,957

3,000

1,000

800

2,500
2,000

600
452

1,500

400

1,000
200

500

00
FY2020 (results)

FY2021 (results)
Unit: million yen

FY2020 (results)

FY2021 (results)[Net sales and operating income](-) Exemption of heating charge
claims(-) Change of account processing
method* Exemption is changed fromextraordinary loss to deduction fromsales.
(-) Increase in fuel costs* Part of the fuel costs is hedged.

Unit: million yen

Airport Facilities Co.,Ltd.

6Outline of the consolidated financial statements
for the fiscal year that ended in March 2022

Water supply
and drainage
business andother businesses

With an increase in the number of airport users, water supply
and drainage business is partly showing signs of recovery.
Net sales
Operating income

1,974 million yen (year on year +7.6%)-33 million yen

Operating income

Net sales
2,000

Performance bybusiness segment

1,974
1,83440

1,800
1,600

<Major factors forincrease/decrease>-10

1,400-33[Net sales](+) Partial recovery of water supply
and drainage service usage fee

-60

1,200
1,000-110

800
600

400

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

-160

2000

FY2020 (results)

FY2021 (results)
Unit: million yen

-210

-188
FY2020 (results)

FY2021 (results)
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 2022

Consolidatedbalance sheet

End of March 2021

End of March 2022
Unit: million yen

Unit: million yen
Current
assets
22,207

Current liabilities 10,518

Current
assets
24,583

Non-current
liabilities
34,946

Non-current
liabilities
36,110Total assets
Increase by
2,038 million yen

Non-current
assets78,221

Current liabilities 11,051

Non-current
assets
77,884

Net assets
54,964

Net assets
55,306

Amount of total assets

100.4 billion yen

Amount of total assets

102.4 billion yen

Net assets per share

1,049 yenNet assets per share

1,055 yen

Equity ratio

52.1%

Equity ratio

51.4%[Assets]

Although there were depreciation and impairment losses on buildings, the asset increased with the recordingof an amount equivalent to the cost of removal that corresponds with the asset retirement obligation and thenew project (ALPINE Koshigaya).
[Liabilities] Although long-term debts are decreasing, liabilities are increasing due to the recording of removal expenses
associated with the Haneda 1 Cho-me Project as an asset retirement obligation.
[Net assets] Increased with an increase in retained earnings and dividends of surplus
Airport Facilities Co.,Ltd.

8

Outline of the consolidated financial statements
for the fiscal year that ended in March 2022

Consolidated cash flow

Unit: million yen

Cash and cash equivalents
as of the end of March 2021

Cash and cash equivalents
Translation adjustment
as of the end of March 2022
of cash, etc.

[Cash flows from operating activities] Includes amount of net income for the period before taxes, collection ofbusiness loans, depreciation expenses, and impairment loss
[Cash flows from investing activities]

Mainly expenses for acquisition of non-current assets[Cash flows from financing activities]

Expenses associated with the repayment of long-term debts and the payment
of dividends

Airport Facilities Co.,Ltd.

9

Outline of the consolidated financial statements forthe fiscal year that ended in March 2022

Impact of COVID-19

Impairment loss for properties rented for hotels in Kyoto
・A plan is considered to sell the hotels in Kyoto for which impairment loss wasrecorded on the hotels in the fiscal year that ended in March 2021, aiming to further
improve the asset efficiency and financial strength. Because the book values wereaccordingly reduced to the estimated recoverable level, 1.5 billion yen was recorded
as an extraordinary loss.

Decrease in the use of water and sewage and the exemptionof rent and heating charge claims
Fiscal year
ending inMarch 2022

Decrease in the use of water andsewage (compared to the fiscalyear that ended in March 2020)

Amount of the exemption ofrent and heating charge claims

Slightly less than 880 million yen

Total of approx. 1 billion yen(deducted from sales)

・With a decline in the number of airport users, use of water decreased accordingly, resulting indecreased sales. The trend showed recovery after entering the fiscal year that ended in March2022, but it did not return to the level before the pandemic.
・Rent and heating charge claims are exempted. The exemption was reported as an extraordinary
loss in the fiscal year that ended in March 2021, and is being deducted from sales since the fiscal
year that ended in March 2022. The amount of exemption is decreasing.
Airport Facilities Co.,Ltd.

10

Outline of the consolidated financial statements
for the fiscal year that ended in March 2022

Shareholder returns

Annual dividend
Annual dividend per share

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

・Dividend is offered as forecast at the beginning of theterm.
・ Our company places importance on the return ofprofits to our shareholders. Dividend is determined bycomprehensively considering the financial conditions.

Changes in annual dividends
(%)

(yen)
20

100
85.1
14

13

1414

14

14

1050

31.2

32.3

33.1

31.2

00
FY2016FY2017FY2018Annual dividend

FY2019FY2020

FY2021Payout 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 Co.,Ltd.

11

AIRPORT FACILITIES CO., LTD.

I.

Outline of the consolidated financial statements forthe fiscal year that ended in March 2022

II.

Forecast on the consolidated performance for thefiscal year ending in March 2023

III.

New Medium- to Long-Term Management Plan

Airport Facilities Co.,Ltd.

12

Forecast on the consolidated financial statements
for the fiscal year ending in March 2023

Consolidated PL Measures regarding COVID-19 including the exemption of rent and heating charge claims are expected
to be terminated.
 Removal expenses associated with the Haneda 1 Cho-me Project are recorded.
Although some temporary expenses for the future are expected for the fiscal years ending in March2023 and March 2024, we aim to achieve increases in net sales and operating income with the recoveryof aviation demand and the stable achievement of the Medium- to Long-Term Management Plan.
Unit: million yen

Year on year+666 million yen (+2.8%)

Net sales
30,00024,443

23,777

Operatingincome
4,000Year on year
-1,193 million yen (-36.4%)
3,280

3,000

20,000

2,087

2,000
10,0001,00000
FY2021 (results)

Ordinary
incomeFY2021 (results)

FY2022 (forecast)Year on year
-1,361 million yen (-45.9%)
2,962

Current
profit900
2,000

Year on year
+278 million yen (+33.9%)
1,099

1,200

3,000

FY2022 (forecast)

821

1,601600

1,00030000
FY2021 (results)

FY2022 (forecast)

FY2021 (results)

FY2022 (forecast)
Airport Facilities Co.,Ltd.

13

Forecast on the consolidated financial statements
for the fiscal year ending in March 2023

EBITDA + recovery A major reason for the decrease in operating income in the fiscal year ending in March2023 is the recording of the asset retirement obligation, which does not seriously affect
EBITDA + recovery.

EBITDA + recovery
8,000

7,501

7,835

7,619

7,464
6,983

6,737
6,000

4,000

2,000

0
FY2017FY2018FY2019FY2020

FY2021

FY2022 *(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 2023

Consolidated PL

Outlook by business segment

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

Real estate business

Area heating
and cooling business

Water supply and drainage
business and other businesses

Year on year

Year on year

Year on year

(Net sales)+208 million yen (+1.1%)(Operating income) -1,110 million yen (-38.7%)(Net sales)+480 million yen (+16.2%)(Operating income) +6 million yen (+1.3%)(Net sales)-21 million yen (-1.0%)(Operating income) -90 million yen (―)

20,00015,00018,845

19,053

1,7520

4,000

3,437

1500

3000

3,000

2000

2,000

1000

1,000

0
FY2021 (results) FY2022 (forecast)

1,974
2,000

2,957

2,862

10,000
5,000

4000

1,953

100
0

1000

1,500
-33-100

1,000
500
4520-123500

4580

FY2021 (results) FY2022 (forecast)

0-200-300

FY2021 (results) FY2022 (forecast)

Unit: million yen<Major factors for increase/decrease>[Net sales](+) Termination of the exemption ofrent(-) Moving in and out of tenants[Net sales](+) Termination of the exemption ofheating charge claims[Net sales](-) Forecasted to maintain the samelevel as the fiscal year that ended inMarch 2022

[Operating income](-) Asset retirement obligation,
early depreciation burden[Operating income](-) Escalation of fuel costs[Operating income](-) Increase in repair expenses,
increase in land rent

Airport Facilities Co.,Ltd.

15

Forecast on the consolidated performancefor the fiscal year ending in March 2023

Shareholder returns

Annual dividend
Annual dividend per share for the fiscalyear ending in March 2023

14 yen (planned)
Interim dividend 7 yen+ year-end dividend 7 yen
Changes in annual dividends(yen)

(%)

20100
141414141485.1

1480

60
63.6

1031.232.3

4033.1

2000
FY2017FY2018FY2019Annual dividend

FY2020

FY2021

FY2022 (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 Co.,Ltd.

16

Disclaimer
Please note■This reference material is not for soliciting investments.

■Descriptions regarding future forecasts are based on information currently available,
and the results may turn out differently depending on changes in the businessenvironment, etc.
■Investors are recommended to make important decisions at their own discretion.
This reference material is also available on our company website.
https://www.afc.jp/english/

Inquiries:
Public Relations Investor Relations Division,
Airport Facilities Co., Ltd.
E-MAIL ： afc_ir@afc.jp

Airport Facilities Co.,Ltd.