May 14, 2014

Financial Results for the Year Ended March 31, 2014 [J-GAAP]
Company name:AIRPORT FACILITIES CO., LTD. (AFC)Stock exchange listed on:
Tokyo Stock Exchange (First Section)
Company code:
8864
URL: http://www.afc-group.jp
Representative: Tomoyuki Takahashi, President and CEO
Inquiries: Kazuhiko Muraishi, Director, Senior Corporate Officer, General Manager of Accounting Dept.
The date of the ordinary general shareholders’ meeting:June 27, 2014
The date of the dividend payment start:
June 30, 2014
The date of filing the securities report:
June 27, 2014
Preparation of earnings presentation material:
Yes
Holding of earnings announcement:
Yes (for analysts)

TEL: +81-3-3747-0251(Figures are rounded off to the nearest million yen.)

1. Consolidated Financial Results for the Year Ended March 2014 (April 1, 2013 - March 31, 2014)(1) Consolidated Business Results(Percentages are changes from the same period of the previous year.)Net sales
Operating income
Ordinary income
Net income
Fiscal year ended

Millions of yen

March 31, 2014
March 31, 2013

% Millions of yen

20,97121,068(0.5)
1.3(Note) Comprehensive income:% Millions of yen

3,499
3,363

4.0
21.4

Fiscal year ended March 31, 2014:
Fiscal year ended March 31, 2013:

Net income
per share
Fiscal year ended

March 31, 2014
March 31, 2013

Diluted net income
per share% Millions of yen

3,090
3,490

(11.5)
28.7

1,631 million yen
1,982 million yen

%

1,093
1,781

(38.7)
3.0((17.7%))((0.2%))

Ordinary income to Operating margin
total assets

Return on equity

Yen

Yen

%

%

%

21.15
34.48

―
―

2.4
3.9

4.1
4.8

16.7
16.0

(Reference) Equity in earnings of affiliates:－ million yen

Fiscal year ended March 31, 2014:
Fiscal year ended March 31, 2013:－ million yen(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

77,621
73,31747,99847,02659.9
62.2

900.07882.80

As of March 31, 2014
As of March 31, 2013
(Reference) Equity capital:

Net assets

As of March 31, 2014: 46,499 million yen

As of March 31, 2013: 45,607 million yen(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at year end

Millions of yen

Millions of yen

Millions of yen

Millions of yen

3,898
5,522

(4,418)(3,833)15(3,516)

2,232
2,737

March 31, 2014
March 31, 2013
2. Dividends

Total
dividends(annual)Dividends per share

Q1

Q2

Q3

Q4

AnnualPayout ratio(consolidated)

Dividends to
net assets(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

March 31, 2013
March 31, 2014

―
―

6.00
6.00

―
―

6.00
6.00

12.00
12.00

620
620

34.8
56.7

1.4
1.3

―

6.00

―

6.00

12.00

Fiscal year ending

March 31, 2015
（Forecasts）

40.0

3. Forecast of Consolidated Earnings for the Year Ending March 2015 (April 1, 2014 - March 31, 2015)(Percentages are changes from the same period of the previous year.)Net salesFirst half
Full fiscal year

Operating income

Ordinary income

Net income
per share

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

10,44020,350

(0.8)
(3.0)

1,540
2,710

(18.6)(22.5)

1,760
2,910

(5.1)
(5.8)

870
1,550

(18.2)
41.8

16.84
30.00

- 1 -

＊ 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. : No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Restatement of revisions: No(3) Number of issued shares (common shares)
1) Number of issued shares
As of March 31, 2014:
54,903,750 shares As of March 31, 2013:
54,903,750 shares(including treasury stock)2) Number of treasury stock
As of March 31, 2014:
3,241,952 shares As of March 31, 2013:
3,241,454 shares
3) Average number of shares during Year ended March 31,
Year ended March 31,
51,661,979 shares
51,662,417 sharesthe period
2014:
2013:

(Reference) Summary of Non-consolidated Results
1. Non-consolidated Financial Results for the Year Ended March 2014 (April 1, 2013 - March 31, 2014)(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, 2014
March 31, 2013

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

18,28718,449

(0.9)
2.0

2,862
2,578

11.0
33.1

2,682
2,932

(8.5)
32.4

971
1,624

(40.2)(9.6)

Net income per
share
Fiscal year ended

March 31, 2014
March 31, 2013

Diluted net income
per share

Yen

Yen

18.79
31.43

－
－

Total assets

Net assets(2) Non-consolidated Financial Position

As of March 31, 2014
As of March 31, 2013
(Reference) Equity capital

Net assets per share

Equity ratio

Millions of yen

Millions of yen%

Yen

72,16868,36345,65644,88763.3
65.7

883.76868.85

As of March 31, 2014: 45,656 million yen

As of March 31, 2013: 44,887 million yen

2. Forecast of Non-consolidated Earnings for the Year Ending March 2015 (April 1, 2014 – March 31, 2015)(Percentages are changes from the same period of the previous year.)Net sales
Millions of yen

Ordinary income

Net income

Net income per share%

Millions of yen%

Millions of yen%

Yen

First half
9,080
(1.1)
Full fiscal year
17,650(3.5)＊ Implementation status of audit procedures

1,640
2,470

(4.9)
(7.9)

870
1,420

(18.0)
46.2

16.84
27.49

The audit procedures stipulated in the Financial Instruments and Exchange Act are not applicable to this Financial Results report, and theprocedures have not been completed when this Financial Results report was disclosed.

＊ 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 andsome conditions that we judge rational. Actual earnings may differ greatly from the above forecasts for various reasons. For the assumptions
for earnings forecasts and cautions regarding the use of the earnings forecasts, please refer to page 3.

- 2 -1. Analysis of Business Results and Financial Position(1) Analysis of Business Results
During the year ended March 31, 2014, the Japanese economy’s recovery has been gradually recovering due to recovery
of exports, continued increases in private consumptions and capital investments and rising stock market while various
policies including monetary easing and weakening yen started to take effects. On the other hand, increases in import prices
and downturn in overseas economies continued to constitute risks to depress the Japanese economy.
In the aviation industry, number of passengers showed a steady growth in both domestic and international operation, witha record-high number of foreign visitors to Japan. Cargo volume exceeded the previous year’s figure in both domestic andinternational operation as domestic demand increased due to vitalized logistics and international transportation demand
from Japan recovered in the second half of the year. However, while intensifying competition among airline companies has
continued to depress unit price, weakening yen and fuel cost hovering at a high level are imposing a heavy burden, airline
companies continue to work on management improvement aiming at further cost savings and revenue increase.
In 1-chome District of Tokyo International Airport (former aircraft maintenance area), part of the facility was returned
recently because major airline companies moved their facilities including the maintenance plant to offshore area as part ofthe streamlining measures, resulting in vacancy in the building. In response, we dismantled certain dilapidated facilities. It
also resulted in a decline in operation rate of area heating & cooling operation service in the area provided by us for a longtime, and we began fundamental review of area heating & cooling system at the end of the fiscal year ended March 31,
2014.
For the fiscal year ended March 31, 2014, the Group (the Company and its consolidated subsidiaries) recorded net salesof ¥20,971 million (down 0.5% from the previous fiscal year), operating income of ¥3,499 million (up 4.0 %), ordinary
income of ¥3,090 million (down 11.5 %) due to a decrease in dividends from subsidiary and removal cost of dilapidated
facilities, and net income of ¥1,093 million (down 38.7 %) due to extraordinary loss related to disposition of dilapidated
assets.
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥14,858 million, an increase by ¥503 million (3.5%) from the previous
fiscal year, and operating income of ¥2,577 million, an increase by ¥232 million (9.9%), as a result of new operationof “Kitakyushu Airport Training Center” and “Maintenance Center” at the Tokyo International Airport completed
during the fiscal year ended March 31, 2013 and “In-flight meal factory” completed during the fiscal year ended
March 31, 2014.
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business recorded net sales of ¥3,720 million, a decrease by ¥524 million (12.4%) from theprevious fiscal year due to decrease in customers in the 1-chome district despite stable revenue from the business ofTokyo Airport Heating & Cooling Co., Ltd. in the offshore area which is one of the largest operation in Japan.
Operating income decreased by ¥205 million (24.4%) to ¥635 million due to increase in expenses such as electricity
and gas fee.
(iii) Water Supply & Drainage Service and Other BusinessNet sales in Water Supply & Drainage Service and Other Business decreased by ¥75 million (3.0%) from theprevious fiscal year to ¥2,394 million as a result of the change in contract forms with the Osaka International Airport
despite an increase in sales from local shared communication service and solar energy business, but operating
income increased ¥109 million (61.5%) to ¥286 million as expenses such as shared communication charge and land
rent decreased.
Forecast for the fiscal year ending March 31, 2015
Although we will aim to increase sales through acquisition of new customers and cutting back on costs throughoperation improvement, because of vacancy in the 1-chome district and decrease in area heating & cooling business,
the forecast for the fiscal year ending March 31, 2015 is net sales of ¥20,350 million (down 3.0% from the previous
fiscal year), operating income of ¥2,710 million (down 22.5%), and ordinary income of ¥2,910 million (down 5.8%),
but we expect net income will increase to ¥1,550 million (41.8%) as extraordinary loss will decrease.

- 3 -(2) Analysis of Financial Position(i) Assets, liabilities and net assets
Total assets as of March 31, 2014 amounted to ¥77,621 million, an increase by ¥4,304 million compared toMarch 31, 2013, mainly due to completion of in-flight meal factory and investment to change thermal energy inthe 1-chome district area of the Tokyo International Airport as well as an increase in unrealized gain in
investment securities from stock price rise.
Liabilities increased by ¥3,332 million from March 31, 2013 to ¥29,623 million, mainly due to an increase in otherpayables from investments in noncurrent assets and new borrowings.
Net assets increased by ¥972 million compared to March 31, 2013 to ¥47,998 million, mainly due to an increase inretained earnings from recording net income and an increase in valuation difference on available-for-sale securities.
As a result, equity ratio as of March 31, 2014 decreased by 2.3 points to 59.9% compared to March 31, 2013.
(ii) Cash Flows
Cash and cash equivalents (“cash”) as of March 31, 2014 amounted to ¥2,232 million, a decrease of ¥505 million(18.5%) from March 31, 2013. Cash flows from each activity for the year ended March 31, 2014 and their significant
factors are as follows:(Cash flows from operating activities)
Net cash provided by operating activities was ¥3,898 million (previous fiscal year: ¥5,522 million), attributable toa decrease in income before income taxes and minority interests and adjustments of non-cash items such as
depreciation and trade receivables.
(Cash flows from investing activities)
Net cash used in investing activities was ¥4,418 million (previous fiscal year: ¥3,833 million used), mainly
attributable to purchase of property, plant and equipment including in-flight meal factory.
(Cash flows from financing activities)
Net cash provided by financing activities was ¥15 million (previous fiscal year: ¥3,516 million used). This slightincrease is attributable to new borrowings.
(Reference) Cash Flow Indicators
FY2012/3

FY2013/3

FY2014/3

Equity ratio (%)

61.4

62.2

59.9

Equity ratio at market value (%)

26.8

44.0

50.7

Debt repayment period (years)

6.3

2.9

4.3

Interest coverage ratio (times)

10.2

19.4

16.1

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.

(3) Basic Policy Regarding Distribution of Earnings and Dividends for the Year Ended March 31, 2014 and the YearEnding March 31, 2015

- 4 -The Real Estate Business, the Company’s primary business, requires large amounts of funds for construction and purchaseof facilities. Also business planning based on a long-term point of view, such as coordinating with the airport project of thegovernment, is essential in our business operation. Accordingly, we must plan distribution of earnings taking into
consideration maintenance of management base and enhancement of financial strength.
As for internal reserves, we intend to use it for capital investment aimed at future business development andimprovement of business performance.
Our dividend policy is to stably return profits to shareholders based on the comprehensive consideration over the current
and future performance. Based on the above policy, the dividend for the year ended March 31, 2014 is expected to be ¥12
per share (including interim dividend of ¥6 per share). The dividend for the year ending March 31, 2015 is also expected tobe ¥12 per share (including interim dividend of ¥6 per share).

- 5 -2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)
FY3/13(As of March 31, 2013)

FY3/14(As of March 31, 2014)

AssetsCurrent assets
Cash and deposits

1,937,693

2,232,163

Notes and accounts receivable-trade

1,104,213

1,231,205

Lease investment assets

1,941,007

2,326,755

Raw materials and supplies

46,175

24,810

Deferred tax assets

220,842

245,883

Short-term loans receivable

799,712－

Others456,394

510,5146,506,036

6,571,330

151,754,993

152,665,408(104,023,457)(102,976,494)

Buildings and structures, net

47,731,536

49,688,914

Machinery, equipment and vehicles

16,981,430

17,395,206(13,855,688)(13,184,550)

3,125,742

4,210,656

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

Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures

389,272

394,415

Accumulated depreciation(351,988)(354,599)

37,28439,816

Land

8,627,706

9,507,156

Construction in progress

1,502,063

757,489

Total property, plant and equipment

61,024,331

64,204,031

96,11475,0033,490,582

4,594,849

Tools, furniture and fixtures, net

Intangible assets
Investments and other assets
Investment securities

6,266

5,102

1,801,151

1,488,211－

75,235

Others422,885

648,332

Allowance for doubtful accounts(30,600)(40,867)

Total investments and other assets

5,690,284

6,770,862

Total noncurrent assets

66,810,729

71,049,896

73,316,765

77,621,226

Long-term loans receivable
Deferred tax assets
Net defined benefit asset

Total assets- 6 -(Thousands of yen)
FY3/13(As of March 31, 2013)

FY3/14(As of March 31, 2014)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,257,057

1,205,511

Short-term loans payable

4,247,722

4,102,092

Accounts payable

715,383

4,069,162

Income taxes payable

478,046

96,492

Accrued expenses

153,850

112,983

Unearned revenue

813,465

838,397

Provision for bonuses

120,200

115,579

Provision for directors’ bonuses

21,03827,600

Provision for removal cost of property, plant and equipment

258,964

375,191

Others968,940

712,852

9,034,665

11,655,859

Long-term loans payable

11,645,140

12,627,848

Long-term guarantee deposited

5,012,653

4,849,441

Long-term accounts payable-facilities

308,118

256,765

Provision for retirement benefits

73,676－－

12,398216,364

210,557－

10,17817,255,951

17,967,187

26,290,616

29,623,046

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,921

6,982,921

Retained earnings

32,746,818

33,219,444

Treasury stock(1,561,637)(1,562,002)

Total shareholders’ equity

44,994,202

45,466,463

Valuation difference on available-for-sale securities

613,054

1,032,562

Total accumulated other comprehensive income

613,054

1,032,562

Minority interests

1,418,893

1,499,156

Total net assets

47,026,149

47,998,180

73,316,765

77,621,226

Total current liabilities
Noncurrent liabilities

Net defined benefit liability
Provision for directors' retirement benefits
Provision for long-term removal cost of property,
plant and equipment
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity

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)
FY3/13(April 1, 2012 –March 31, 2013)

FY3/14(April 1, 2013 –March 31, 2014)

Net sales

21,067,691

20,971,306

Cost of sales

16,221,265

16,016,243

Gross profit

4,846,426

4,955,063

Selling, general, and administrative expenses
Directors' compensations

249,056

291,078

Salaries and bonuses

497,157

444,468

Provision for bonuses

67,89861,486

Provision for directors' bonuses

21,03827,600Transportation and communication expenses

81,83885,784

Depreciation

35,38532,792

Taxes and dues

70,04573,698OthersTotal selling, general, and administrative expenses
Operating income

461,457

439,652

1,483,874

1,456,558

3,362,552

3,498,505

419

67

Non-operating income
Interest income
Dividends income

354,52191,715

Commission fee

137,172

172,685

Gain on investments in silent partnership

28,47731,364

Others113,994

70,720Total non-operating income

634,583

366,551

Non-operating expenses
Interest expenses

274,107241,255

Removal cost of property, plant and equipment

232,357

375,191536

158,155

OthersTotal non-operating expenses
Ordinary income

507,000

774,6013,490,135

3,090,455

53,928－Extraordinary income
Compensation for remaining book value
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
OthersTotal extraordinary loss－

517

53,928517

591,086

1,288,986

3,496

2,500

594,582

1,291,486

Income before income taxes and minority interests

2,949,481

1,799,486

Income taxes

1,023,800

532,7312,694

55,593

Income taxes - deferred
Total income taxes

1,026,494

588,324

Income before minority interests

1,922,987

1,211,162

Minority interests in income
Net income- 8 -141,752

118,592

1,781,235

1,092,570

(Consolidated statements of comprehensive income)(Thousands of yen)
FY3/13(April 1, 2012 –March 31, 2013)

FY3/14(April 1, 2013 –March 31, 2014)

1,922,987

1,211,162

Valuation difference on available-for-sale securities

59,376

419,508

Total other comprehensive income

59,376

419,508

1,982,363

1,630,670

Comprehensive income attributable to owners of the parent

1,840,611

1,512,078

Comprehensive income attributable to minority interests

141,752

118,592

Income before minority interests
Other comprehensive income

Comprehensive income
Comprehensive income attributable to- 9 -(3) Consolidated Statements of Changes in Net Assets
For the Year ended March 31, 2013 (April 1, 2012 to March 31, 2013)(Millions of yen)
Shareholders' equity

Capital stock

Balance at the beginning of current period

Capital surplus

6,826,100

6,982,921

Retainedearnings

Treasury stock

33,156,964(1,561,558)

Total
shareholder'sequity45,404,427

Changes of items during the period
Dividends from surplus(619,950)(619,950)

Net income

1,781,235

1,781,235

Purchase of treasury stock(79)

Change of scope of consolidation(1,571,700)

269

269

Other
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period－－－(410,146)(79)(410,225)

6,826,100

6,982,921

32,746,818(1,561,637)

44,994,202

Accumulated othercomprehensive income

Balance at the beginning of current period

Valuationdifference on
available-for-salesecurities

Total
accumulated
othercomprehensive
income553,678

553,678

Minority
interests

1,315,469

Total
net assets

47,273,574

Changes of items during the period
Dividends from surplus(619,950)

Net income

1,781,235

Purchase of treasury stock(79)

Change of scope of consolidation(1,571,700)

Other
Net changes of items other than shareholders' equity(79)(1,571,700)

269
59,37659,376

103,424

162,800

Total changes of items during the period

59,37659,376

103,424(247,425)

Balance at the end of current period

613,054

613,054

1,418,893

47,026,149- 10 -

For the Year ended March 31, 2014 (April 1, 2013 to March 31, 2014)(Millions of yen)
Shareholders' equity

Capital stock

Balance at the beginning of current period

Capital surplus

6,826,100

6,982,921

Retainedearnings

32,746,818

Treasury stock(1,561,637)

Total
shareholder'sequity44,994,202

Changes of items during the period
Dividends from surplus(619,945)(619,945)

Net income

1,092,570

1,092,570

Purchase of treasury stock

(365)

(365)

Change of scope of consolidation

－

Other

－

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

472,626(365)

472,261

6,826,100

6,982,921

33,219,444(1,562,002)

45,466,463

Accumulated othercomprehensive income

Balance at the beginning of current period

Valuationdifference on
available-for-salesecurities

Total
accumulated
othercomprehensive
income613,054

613,054

Minority
interests

1,418,893

Total
net assets

47,026,149

Changes of items during the period
Dividends from surplus(619,945)

Net income

1,092,570

Purchase of treasury stock(365)

Change of scope of consolidation

－

Other

－

Net changes of items other than shareholders' equity

419,508

419,508

80,262499,770

Total changes of items during the period

419,508

419,508

80,262

972,031

1,032,562

1,032,562

1,499,155

47,998,180

Balance at the end of current period- 11 -

(4) Consolidated Statements of Cash Flows(Thousands of yen)
FY3/13(April 1, 2012 –March 31, 2013)

FY3/14(April 1, 2013 –March 31, 2014)

Depreciation and amortization

2,949,481
3,222,352

1,799,486
3,093,338

227,163

126,406

Increase (decrease) in provision for retirement benefits(74,749)(61,278)

Increase (decrease) in provision for retirement benefits－
46,910(75,235)

961(4,621)－(7,633)

10,267

Interest and dividend income(354,940)(91,782)

Interest expenses

274,107241,255

Loss on disposal of property, plant and equipment

591,086

1,288,986

Cash flows from operating activities
Income before income taxes and minority interests
Increase (decrease) in provision for removal cost of property,
plant and equipment

Increase (decrease) in provision for directors' retirement
benefits

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors’ bonuses
Increase (decrease) in allowance for doubtful accounts

Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable
Decrease (increase) in inventories
Net decrease (increase) in lease receivables and investment assets

Increase (decrease) in notes and accounts payable(5,807)
6,563

0

(517)

304,089(126,992)

3,621

21,365(1,020,872)(385,748)(498,460)(51,545)

Increase (decrease) in unearned revenue

49,78524,932

Increase (decrease) in accrued expenses(7,675)(40,627)

Increase (decrease) in accrued consumption taxes

329,167(334,990)

Decrease (increase) in other assets

167,521(279,567)

Increase (decrease) in other liabilities

53,969(208,447)

Subtotal

6,255,883

4,945,440

Interest and dividends received
Interest paid

354,940(284,018)

91,782(241,496)

Income taxes paid

(805,004)(897,822)

Net cash provided by operating activities

5,521,801

3,897,904

Purchase of short-term investment securities(789,889)

Purchase of investments in capital of subsidiaries－
0－(454,632)

Cash flows from investing activities

Proceeds from sales of short-term investment securities

Purchase of noncurrent assets(3,044,105)

Collection of long-term loans receivable
Net cash used in investing activities- 12 -

2,697(3,967,261)

1,330

1,164

(3,832,664)(4,418,032)

(Thousands of yen)
FY3/13(April 1, 2012 –March 31, 2013)

FY3/14(April 1, 2013 –March 31, 2014)

Cash flows from financing activities
Increase in short-term loans payable

1,950,000

4,500,000

Decrease in short-term loans payable(1,950,000)(4,300,000)

Proceeds from long-term debt

1,700,000

4,000,000

Payments of long-term debt

(4,963,532)(3,362,922)

Proceeds from guarantee deposits received

696,596257,579

Repayments of guarantee deposits received(291,124)(422,142)

Purchase of treasury stock

(79)

(365)

Payment of cash dividends(619,228)(618,935)

Cash dividends paid to minority shareholders(38,329)(38,329)

Net cash used in financing activities(3,515,696)

14,886

Net increase (decrease) in cash and cash equivalents(1,826,559)(505,242)

Cash and cash equivalents at beginning of period

5,154,610

2,737,405(590,646)－

2,737,405

2,232,163

Decrease in cash and cash equivalents resulting from exclusionof subsidiaries from consolidation

Cash and cash equivalents at end of period- 13 -

(Segment Information)a. 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 andevaluate their performances.
The Company’s head office develops comprehensive business strategies of each segment and pursue 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 (loss), assets, liabilities, and other items by reportable segments
Fiscal year ended March 2013 (April 1, 2012– March 31, 2013)(Thousands of yen)
Reportable segment
Carrying amount on
consolidated
statements of income

Real EstateBusiness

Area Heating &Cooling
Business

Water Supply &Drainage
Service andOther BusinessNet sales to outside
customers
Inter-segment
Net sales/transfers

14,354,504

4,244,417

2,468,770

21,067,691－

21,067,691－

706,439

267,025

973,464（973,464）

－

Total

14,354,504

4,950,856

2,735,795

22,041,155（973,464）

21,067,691

Segment income

2,345,433

839,788

177,331

3,362,552－

3,362,552

Segment assets

54,427,903

7,402,792

626,999

62,457,694

10,859,071

73,316,765

Segment liabilities

20,322,792

2,953,174

147,993

23,423,959

2,866,657

26,290,616

2,571,908

565,081

49,9783,186,967

35,385

3,222,352

2,329,468

826,562

7,188

3,163,218

3,257

3,166,475

Adjustments
Total

Note 1

Note 2

Net sales

Other items
Depreciation andamortization
Increase in property, plantand equipment andintangible assets(Notes)1. Adjustments represent elimination of intersegment transactions.
2. Segment income refers to operating income.

- 14 -

Fiscal year ended March 2014 (April 1, 2013– March 31, 2014)(Thousands of yen)
Reportable segment
Carrying amount on
consolidated
statements of income

Real EstateBusiness

Area Heating &Cooling
Business

Water Supply &Drainage
Service andOther BusinessNet sales to outside
customers

14,857,660

3,720,062

2,393,584

20,971,306－

20,971,306

Inter-segment
Net sales/transfers

218,003734,790

256,900

1,209,693(1,209,693)－

15,075,663

4,454,852

2,650,484

22,180,999(1,209,693)

20,971,306

Segment income

2,577,485

634,705

286,315

3,498,505－

3,498,505

Segment assets

59,459,861

7,258,706

943,034

67,661,601

9,959,625

77,621,226

Segment liabilities

11,686,583

344,016

267,251

12,297,850

17,325,196

29,623,046

2,410,805

585,376

64,3103,060,491

32,8483,093,339

6,408,961

859,320

265,021

7,533,302

7,613

7,540,915

Adjustments
Total

Note 1

Note 2

Net sales

Total

Other items
Depreciation andamortization
Increase in property, plantand equipment andintangible assets(Notes)1. Adjustments represent elimination of intersegment transactions.
2. Segment income refers to operating income.

- 15 -