January 25, 2024

Financial Results for the Third Quarter of the Year Ending March 31, 2024 [J-GAAP](Consolidated)
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: Shigeo Tamura, President & CEO
Inquiries: Shigeyuki Kodama, Executive Officer, General Manager of Accounting and Financial Affairs Dept.
TEL: +81-3-3747-0251
The Date of Filing the Quarterly Securities Report:
February 1, 2024
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 Third Quarter of the Fiscal Year Ending March 2024 (April 1, 2023 – December 31, 2023)(1) Consolidated Business Results(Percentages are changes from the same period of the previous year.)Net salesFirst nine months ended

Millions of yen

December 31, 2023
December 31, 2022

19,467
19,039Operating income% Millions of yen(Note) Comprehensive income:% Millions of yen

2,911
2,596

2.27.2

Profit attributable toowners of parent

Ordinary income

12.1(15.1)% Millions of yen

2,899
2,424

19.6
(15.9)

1,842
2,287%(19.4)
20.0

First nine months ended December 31, 2023: 2,897 million yen (28.1%)
First nine months ended December 31, 2022: 4,031 million yen 89.7%

Basic earnings pershare

Diluted earnings
per shareFirst nine months endedYen

Yen

December 31, 2023
December 31, 2022

36.73
45.73

36.69
45.63

(2) Consolidated Financial Position
Total assets

Equity ratio

Millions of yen

113,641
100,40360,667
57,368

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

Net assets

Millions of yen

Net assets per share%

Yen

51.0
54.5
51.4 million yen
As of March 31, 2023: 54,799

As of December 31, 2023: 58,028 million yen

1,156.23
1,095.16
1,055.28

2. Dividends
Dividends per share

Q1

Q2
Yen

FY ended March 31, 2023
FY ending March 31, 2024
FY ending March 31, 2024 (Forecasts)

――

Q3
Yen

Q4

Annual

Yen

7.00
7.00

Yen

Yen

7.00

14.00

7.00

14.00

―
―(Note) Changes in the latest forecasts released: No

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 sales
Millions of yen

Full fiscal year

26,037

Operating income% Millions of yen

2.0

2,764

Profit attributable toowners of parent

Ordinary income

Basic earnings
per share%

Millions of yen%

Millions of yen%

Yen

10.3

2,664

25.5

1,681

7.4

33.53

(Note) Changes in the latest forecasts released: No-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 revisions1) 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(including treasury stock)2) Number of treasury stock

As of December 31, 2023:

52,979,350 shares As of March 31, 2023:

52,979,350 shares

As of December 31, 2023:

2,791,609 shares As of March 31, 2023:

2,941,665 shares

3) Average number of shares during First nine months ended
the period
December 31, 2023:

50,148,510 shares First nine months ended
December 31, 2022:

50,005,429 shares* Financial Results report is outside the scope of an audit 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 andsome conditions that we judge rational, and therefore they do not constitute a guarantee that they will be realized. 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 4 “1. Qualitative Information on Consolidated Financial Results for the Quarter Ended December 31, 2023 (3)Qualitative Information on Consolidated Earnings Forecast.”-2-

1. Qualitative Information on Consolidated Financial Results for the Quarter Ended December 31, 2023
(1) Explanation about Business Results
During the nine months ended December 31, 2023, the Japanese economy continued to be on a gradual recovery trend
as the economic activity has been recovering after the legal status of COVID-19 under the law on infectious diseases wasdowngraded to Class 5 in May 2023. Meanwhile, we still need to carefully monitor risks that may put downward pressure
on the Japanese economy such as surging prices due to exchange rate fluctuations and high resource prices and thedeteriorating situations in the Middle East.
In the aviation industry, supported by strong inbound demand and leisure demand following the lifting of movement
restrictions in Japan, the number of passengers showed a steady recovery in both domestic and international flights, and we
expect that passenger demand will continue to be on a recovery trend.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of¥19,467 million (up 2.2% from the same period of the previous fiscal year) mainly because there was a continued recovery
trend in water supply and drainage usage despite a decrease in net sales as a consequence of sales of hotels and officebuildings for lease in February 2023. Operating income was ¥2,911 million (up 12.1%), ordinary income was ¥2,899 million(up 19.6%) mainly due to recording of gain on investments in silent partnership, etc. by an aircraft leasing fund and a decreasein provision for removal cost related to various constructions, and profit attributable to owners of parent was ¥1,842 million(down 19.4%).
Profit attributable to owners of parent decreased year-on-year because, for the nine months ended December 31, 2022,
consumption taxes refund in relation to the filing of amended returns for corporate and consumption taxes was recorded as
extraordinary income and also because the estimated effective tax rate used in the calculation of tax expenses declined as aconsequence of sales of hotels for lease, resulting in a decrease in income taxes.
Performance by business segment is as follows:(i) Real Estate Business
Real estate business recorded net sales of ¥14,604 million (down 1.1% from the same period of the previous fiscal year)
mainly due to a decrease in net sales as a consequence of sales of hotels and office buildings for lease in February 2023 while
net sales increased due to lease of office buildings acquired as part of our efforts related to non-asset business, one of thepriority measures in the Medium- to Long-Term Management Plan, (we acquired “Hiroshima Motomachi NS Building(Naka-ku, Hiroshima City)” in March 2023, “Shinjuku Yawaragi Building (Shinjuku-ku, Tokyo)” in June, “Gofukukan (Aoiku, Shizuoka City)” in August and “Nihonbashi Hamacho 2-Chome Building (Chuo-ku, Tokyo)” in October) and variable
rents of hotels and parking lot revenue of HANEDA INNOVATION CITY also increased as economic activities have become
active. Operating income was ¥2,199 million (up 5.1%) due to a decrease in depreciation, etc. related to sold facilities.
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport Heating & Cooling Co., Ltd.
recorded net sales of ¥2,605 million (up 1.9% from the same period of the previous fiscal year) as sales from cold/heatenergy supply increased year-on-year mainly due to the intense summer heat. Operating income was ¥428 million (up 11.8%)
as a decline in gas prices from the previous fiscal year’s level resulted in a decrease in raw material costs although periodic
maintenance expenses for cooling machines and boilers were recorded.

(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥2,258 million (up 31.6% from the same
period of the previous fiscal year) and operating income of ¥283 million (up 132.7%) mainly because the number ofpassengers has recovered and water supply and drainage usage is returning to the pre-COVID-19 level following thedowngrade of COVID-19 to Class 5, water supply and drainage usage increased mainly due to the full opening of Haneda
Airport Garden in January 2023, and the shared telecommunications business also showed steady growth.
In addition, from the three months ended September 30, 2023, we installed solar power generation equipment on therooftop of our engine maintenance shop in a Singaporean consolidated subsidiary (AIRPORT FACILITIES ASIA PTE.
LTD.) and started selling electricity to the tenants of the facility for self-consumption.
As for the buildings we have acquired as part of our efforts related to non-asset business, we aim to increase their property
value through value enhancement work.
The Group will continue to make a unified effort to steadily carry out various business strategies based on the Mediumto Long-Term Management Plan.

-3-(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of December 31, 2023 amounted to ¥113,641 million, an increase by ¥13,238 million compared toMarch 31, 2023, mainly due to an increase in real estate for sale as a result of an acquisition of office buildings in nonasset business, an increase in cash and deposits due to financing from a financial institution and an increase in investment
securities as a result of additional investment in an aircraft leasing fund despite a decrease in property, plant andequipment due to depreciation of buildings and asset retirement assets.
(Liabilities)
Total liabilities as of December 31, 2023 amounted to ¥52,974 million, an increase by ¥9,939 million compared toMarch 31, 2023, mainly due to an increase in short- and long-term loans payable associated with acquisitions of realestate for sale.
(Net assets)
Net assets as of December 31, 2023 increased by ¥3,298 million compared to March 31, 2023 to ¥60,667 million
mainly due to an increase in retained earnings.
As a result, equity ratio as of December 31, 2023 decreased by 3.5 points to 51.0% compared to March 31, 2023.
(3) Qualitative Information on Consolidated Earnings Forecast
There is no change in the Consolidated Earnings Forecast for the Year Ending March 31, 2024, which was announced
in the “Announcement on the Difference Between Earnings Forecast and Actual Results for the Six Months Ended
September 30, 2023 and Revision to Full-Year Consolidated Earnings Forecast” (Japanese version only) released on October,
26, 2023.
We will promptly make an announcement when it becomes necessary to review the forecast.

-4-2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)

FY3/23(As of March 31, 2023)

Third quarter of FY3/24(As of December 31, 2023)

AssetsCurrent assets
Cash and deposits

8,598,633

13,269,914

Accounts receivable - trade

1,343,102

1,281,945

Lease receivables and investment assets

11,019,327

11,183,040

Operating loans

4,067,980

4,089,030

－

1,686

2,988,214

10,852,827

Raw materials and supplies

12,36013,422Others851,617

2,041,569

28,881,236

42,733,437

Buildings and structures, net

42,133,640

41,876,987

Machinery, equipment and vehicles, net

5,210,042

4,855,368

122,486

136,326

Land

10,805,148

10,805,148

Construction in progress

2,113,525

350,934

Total property, plant and equipment

60,384,843

58,024,766

Software413,782

350,683

Others35,32935,113Total intangible assets

449,111385,797

Investment securities

9,256,745

11,155,227

Deferred tax assets

652,032

590,399

Net defined benefit asset

198,748

169,615

Others590,759592,299

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

Total investments and other assets

10,688,019

12,497,275

71,521,975

70,907,839

100,403,211

113,641,276

Merchandise
Real estate for sale

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

Tools, furniture and fixtures, net

Intangible assets

Investments and other assets

Total non-current assets
Total assets-5-(Thousands of yen)

FY3/23(As of March 31, 2023)

Third quarter of FY3/24(As of December 31, 2023)

Notes and accounts payable-trade

1,691,141

664,084

Short-term loans payable

5,066,580

8,292,346

Accounts payable

1,230,829

405,726

Income taxes payable

79,273

952,127

Accrued expenses

94,608268,886

Unearned revenue

1,022,220

1,760,746

152,00286,69531,40021,637

179,322

100,302

Liabilities
Current liabilities

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

318,320

821,471

9,865,698

13,374,023

Bonds payable

6,100,000

6,100,000

Long-term loans payable

16,134,790

22,570,968

Long-term guarantee deposited

6,314,218

6,429,519

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

179,994

121,010

1,044

5,763

41,363

46,793

Provision for removal cost of property, plant and equipment

115,447

44,389Asset retirement obligations

4,281,762

4,281,762

Total non-current liabilities

33,168,620

39,600,205

43,034,318

52,974,228

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,890

6,982,890

Retained earnings

39,660,392

41,847,271

Treasury stock(1,630,050)(1,546,919)

Total shareholders’ equity

51,839,332

54,109,341

2,063,074

2,202,726

896,997

1,716,770

2,960,071

3,919,496

Subscription rights to shares

50,33022,923

Non-controlling interests

2,519,158

2,615,286

Total net assets

57,368,892

60,667,047

100,403,211

113,641,276

OthersTotal current liabilities
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-6-(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement 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
Gain on investments in silent partnership, etc.
Foreign exchange gains
OthersTotal non-operating income
Non-operating expenses
Interest expenses
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
Consumption taxes refund
OthersTotal extraordinary income
Extraordinary loss
Loss on retirement of non-current assets
Loss on cancellation of golf club membership
Total extraordinary loss
Income before income taxes
Income taxes
Income taxes for prior periods
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

First nine months of FY3/23(April 1, 2022 – December 31, 2022)
19,039,51114,874,533
4,164,977

First nine months of FY3/24(April 1, 2023 - December 31, 2023)
19,467,904
15,028,432
4,439,471

177,699483,207
66,882

157,712555,072
63,18423,55018,232696

3,069

54,65776,427
98,104
586,808
1,568,032
2,596,944

60,542
82,56698,883
488,493
1,527,755
2,911,716

0
76,66813,857－
4,765
105,683
200,976

1
83,516
21,88159,9301,795
52,174
219,301

216,130
49,305
107,062
1,175
373,6732,424,247

203,385
27,899－4
231,2902,899,727

11,721
315,363
21,299348,384

－
－－－

1,978
3,000
4,978
2,767,654
300,680
100,174
400,855
2,366,799
79,7942,287,005

1,678
3,000
4,678
2,895,048
956,720－
956,720
1,938,328
96,128
1,842,199-7-

(Quarterly Consolidated Statement of Comprehensive Income)(Thousands of yen)First nine months of FY3/23(April 1, 2022 – December 31, 2022)
2,366,799

First nine months of FY3/24(April 1, 2023 - December 31, 2023)
1,938,328

Valuation difference on available-for-sale securities

360,076

139,651Foreign currency translation adjustment

1,305,112

819,773

Total other comprehensive income

1,665,189

959,425

4,031,988

2,897,753

Comprehensive income attributable to owners of parent

3,952,194

2,801,624

Comprehensive income attributable to non-controlling interests

79,794

96,128

ProfitOther comprehensive income

Comprehensive income(Breakdown)-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 Significant Subsidiaries during the Period)
Not applicable.
Although this does not constitute a change in significant subsidiaries, AFC Asset Management Co., Ltd. and AFC
Shoji Co., Ltd., which were non-consolidated subsidiaries for the year ended March 31, 2023, are included in the scopeof consolidation from the three months ended June 30, 2023 as they became significant.
(Application of Specific Accounting Treatments in Preparing the Quarterly Consolidated Financial Statements)(Calculation of tax expenses)
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 three months ended December 31, 2023.

-9-