January 30, 2020

Financial Results for the Third Quarter of the Year Ending March 31, 2020 [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:
February 3, 2020
The date of the dividend payment start:
No
Preparation of quarterly earnings presentation material:
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 2020 (April 1, 2019 - December 31, 2019)(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 nine months ended

Millions of yen

December 31, 2019
December 31, 2018

18,61918,137% Millions of yen

2.6
6.7

(Note) Comprehensive income:% Millions of yen

3,647
3,304

10.3
2.7

% Millions of yen

3,547
2,824

25.5
(4.8)

First nine months ended December 31, 2019:
First nine months ended December 31, 2018:

Basic earnings per
share

%

2,206
1,818

2,317 million yen
1,616 million yen

21.3
2.8
(43.3 %)((43.7%))

Diluted earnings
per shareFirst nine months ended

Yen

Yen

December 31, 2019
December 31, 2018

44.30
36.53

44.14
36.38

(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

104,633
101,384

57,34855,74052.4
52.6

1,100.81
1,072.90

As of December 31, 2019
As of March 31, 2019
(Reference) Equity capital:

Net assets

As of December 31, 2019: 54,867 million yen

As of March 31, 2019: 53,387 million yen

2. Dividends
Dividends per share

Q1

Q2
Yen

FY ended March 31, 2019
FY ending March 31, 2020
FY ending March 31, 2020 (Forecasts)

Q3
Yen

7.00
7.00

－
－

Q4

Annual

Yen

－
－

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 2020 (April 1, 2019 - March 31, 2020)(Percentages are changes from the same period of the previous year.)Net sales
Full fiscal year

Operating income

Profit attributable toowners of parent

Ordinary income

Basic earnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

24,780

2.2

4,170

0.8

3,710

11.2

2,320

10.2

46.62

(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 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. : 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
As of December 31, 2019:
treasury stock)2) Number of treasury stock
As of December 31, 2019:3) Average number of shares during
the period

First nine months ended
December 31, 2019:

52,979,350 shares As of March 31, 2019:

52,979,350 shares

3,136,206 shares As of March 31, 2019:

3,219,779 shares

49,799,714 shares First nine months ended
December 31, 2018:

49,758,278 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(Remarks on forward-looking statements)
The statements about future described on this report such as earnings forecasts have been made based on information currently available andcertain assumptions considered reasonable, and it is not intended to assure that we will achieve such results. Actual earnings may differ
significantly from the above forecasts for various reasons. For the assumptions for earnings forecasts and cautions regarding the use of theearnings forecasts, please refer to “1. Qualitative Information on Consolidated Financial Results for the Quarter Ended December 31, 2019 (3)Qualitative Information on Consolidated Earnings Forecast” on page 4.

- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended December 31, 2019(1) Explanation about Business Results
During the nine months ended December 31, 2019, the Japanese economy continued to recover gradually supported by apickup of personal consumption and steady growth in capital investment under the continuing monetary easing policy by
the Bank of Japan, despite a consumption tax hike in October and repeated typhoons causing serious damages. The global
economy also continued to show gradual recovery due to the robust U.S. economy and the trade agreement signed by the
U.S. and Chinese governments easing tensions between the two countries although there were concerns over significant
slowdown of the global economy at one point as the U.S.-China trade friction resulted in stagnant export and production in
China and Europe. As for the future outlook, there are concerns over the impact on the Japanese economy of factors
including growing tensions in the Middle East caused by the escalating U.S.-Iran conflict and the outbreak of novel
coronavirus which started in China, in addition to the U.S.-China trade friction whose outlook remains uncertain, theslowdown of the Chinese economy, and a delay in improvement of Japan-Korea relations.
In the aviation industry, the number of passengers showed steady growth particularly due to a strong demand forinternational flights from inbound visitors from China and Southeast Asia which made up for a drop in visitors from Korea
as well as the impact of cancellations of domestic flights due to Typhoon Hagibis (No. 19) in October. As a result, thenumber of inbound visitors in 2019 exceeded 31.8 million, marking the eighth consecutive year of growth.
In the run-up to the 2020 Tokyo Olympic and Paralympic Games to be held this summer, Tokyo International Airport isworking on the functional enhancement from March 2020, including an increase in annual international arrival and departureslots by 39 thousand, to meet the government-set target number of inbound visitors in 2020 of 40 million. In addition, efforts
to attract foreign visitors to regional airports are also in progress toward further demand stimulation of inbound visitors.
Amid concerns over unstable movement of crude oil prices and exchange rate fluctuations, airline companies arecontinuing to work on such efforts as implementing advanced equipment, expanding network, and enhancing LCC business.
Furthermore, their urgent tasks include increasing training facilities for crews and the number of staffs that are currently
insufficient, as well as securing aircraft equipment warehouses, employee dormitories, and in-flight meal factories, and theCompany also intends to address these issues.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of¥18,619 million (up 2.6% from the same period of the previous year) due to full-year operation of the hotel in Kyoto
acquired in 2018, the launch of the business that leases training planes to Civil Aviation College, and a start of leasing new
facilities. Operating income was ¥3,647 million (up 10.3%) due to an absence of taxes and dues associated with theacquisition of the hotel. Also, due to an absence of bond issuance cost and provision for removal cost which were recorded
in non-operating expenses in the previous fiscal year, ordinary income was ¥3,547 million (up 25.5%). Although theCompany recorded nonrecurring loss related to Typhoon damage and the water supply disruptions at Tokyo International
Airport during the period, its impact on the financial results was insignificant, and accordingly profit attributable to ownersof parent increased to ¥2,206 million (up 21.3%), showing steady growth.
With regard to the water supply disruptions at the Tokyo International Airport Passenger Terminal No. 2 in earlyNovember, the aviation authority established a committee that is currently investigating the cause, and the Company is fully
cooperating with the committee and taking adequate measures.
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥14,003 million (up 3.4% from the same period of the previous fiscal year)
due to an improved tenant occupancy ratio in Tokyo International Airport, a revision of the agreements to raise rents
for certain existing facilities, full-year operation of the hotel in Kyoto whose lease started in late June in 2018, startof leasing training planes to Civil Aviation College in April 2019, start of leasing the new extended hangar at Kobe
Airport and an aircraft equipment warehouse completed in December. Operating income was ¥2,654 million (up10.9%).
(ii) Area Heating & Cooling BusinessNet sales of Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport Heating &Cooling Co., Ltd. remained almost unchanged year-on-year at ¥2,433 million (up 0.1% from the same period of theprevious fiscal year). Operating income was ¥751 million (up 9.9%) due to reduction of repair expenses and raw
material costs, despite an increase in depreciation of boiler equipment that was renewed in 2018.

- 3 -(iii) Water Supply & Drainage Service and Other BusinessNet sales of Water Supply & Drainage Service and Other Business remained almost unchanged year-on-year at ¥2,182
million (up 0.7 % from the same period of the previous fiscal year) due to a rebound in demand for water supply anddrainage service at New Chitose Airport from the decline after the earthquake in September 2018 and an increase inuse of exclusive lines in shared telecommunications network service, despite a decrease in water supply forconstructions at Tokyo International Airport. Operating income was ¥240 million (up 5.2%).
(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of December 31, 2019 amounted to ¥104,633 million, an increase by ¥3,248 million compared to March 31,
2019, due to the completion of the extension of a hangar at Kobe Airport and the construction of an aircraft equipment
warehouse, an increase in construction in progress associated with the extension or reconstruction of in-flight meal factoryin ARC Building at Tokyo International Airport completed in January 2020 and the construction of an aircraft sewage
treatment facility (SD plant) to be completed in March 2020, and an additional investment in Haneda Innovation City in
Zone 1 of the Former Haneda Airport Ground.
(Liabilities)
Liabilities as of December 31, 2019 amounted to ¥47,284 million, an increase by ¥1,639 million compared to March 31,
2019, due to an increase in accounts payable associated with acquisition of assets, in addition to an increase in long-termloans payable.
(Net assets)
Net assets as of December 31, 2019 increased by ¥1,608 million compared to March 31, 2019 to ¥57,348 million mainly
due to an increase in retained earnings.
As a result, equity ratio as of December 31, 2019 decreased by 0.2 points to 52.4% compared to March 31, 2019.
(3) Qualitative Information on Consolidated Earnings Forecast
Although both sales and profits for the nine months ended December 31, 2019 exceeded the forecast, we do not revise at
this point the Consolidated Earnings Forecast for the Year Ending March 31, 2020 announced in the Financial Results for
the Year Ended March 31, 2019 [J-GAAP] dated May 10, 2019, because the future repair expenses, etc. are uncertain.

- 4 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY3/19(As of March 31, 2019)

Third quarter of FY3/20(As of December 31, 2019)

AssetsCurrent assets
Cash and deposits

4,324,573

5,898,695

Notes and accounts receivable-trade

1,208,590

1,229,474

Securities

1,500,000－

Lease receivables and investment assets

6,600,080

7,231,789

Operating loans

5,741,839

4,851,709

12,908

11,972Others

1,456,944

786,240

Total current assets

20,844,937

20,009,881

Buildings and structures, net

47,359,577

46,977,364

Machinery, equipment and vehicles, net

5,395,693

5,444,898

Raw materials and supplies

Non-current assets
Property, plant and equipment

568,807463,248

Land

14,596,026

14,902,098

Construction in progress

3,299,425

5,163,898

Total property, plant and equipment

71,219,530

72,951,508

27,02329,920－223,711

Others14,906

14,793

Total intangible assets

41,929268,426

7,671,946

8,303,591

1,732

1,432

Deferred tax assets

320,447

282,469

Net defined benefit asset

203,945

174,017

Others1,090,548

2,652,331

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

Total investments and other assets

9,278,352

11,403,575

80,539,812

84,623,510

101,384,749

104,633,392

Tools, furniture and fixtures, net

Intangible assets
Software
Software in progress

Investments and other assets
Investment securities
Long-term loans receivable

Total non-current assets
Total assets- 5 -(Thousands of yen)
FY3/19(As of March 31, 2019)

Third quarter of FY3/20(As of December 31, 2019)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,532,544

633,813

Short-term loans payable

5,974,226

6,646,303

Accounts payable

1,064,205

1,862,140

Income taxes payable

557,004

615,170

Accrued expenses

109,744

92,190

Unearned revenue

1,045,001

1,675,031

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

131,094

64,41930,05813,357364,598

395,433

Others384,329

346,577

11,192,806

12,344,436

Bonds payable

6,000,000

6,000,000

Long-term loans payable

21,729,366

22,443,607

Long-term guarantee deposited

5,915,755

5,939,687

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

476,128

319,253

1,044

2,088

6,379

6,622

Provision for removal cost of property, plant and equipment

323,237

190,804－

37,96534,451,910

34,940,028

45,644,717

47,284,465

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,890

6,982,890

Retained earnings

38,777,424

40,286,954

Treasury stock(1,784,131)(1,737,829)

Total shareholders’ equity

50,802,282

52,358,114

Valuation difference on available-for-sale securities

2,817,756

2,903,807

Foreign currency translation adjustment(232,638)(394,019)

Total accumulated other comprehensive income

2,585,117

2,509,788

Subscription rights to shares

113,808

94,722

Non-controlling interests

2,238,823

2,386,300

Total net assets

55,740,032

57,348,926

101,384,749

104,633,392

Total current liabilities
Non-current liabilities

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

Accumulated other comprehensive income

Total liabilities and net assets- 6 -(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of yen)First nine months of FY3/19(April 1, 2018 – December 31, 2018)

First nine months of FY3/20(April 1, 2019 – December 31, 2019)

Net sales

18,137,005

18,619,289

Cost of sales

13,332,244

13,464,637

Gross profit

4,804,760

5,154,652

Remuneration for directors (and other officers)

252,679

243,826

Salaries and bonuses

417,473

449,443

Selling, general, and administrative expenses

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

39,15040,191

15,02913,357

1,044

1,044

80,60874,017

21,321

19,940

Taxes and dues

132,400

127,895

Others

540,352

537,744

1,500,058

1,507,459

3,304,701

3,647,192

00Dividends income

171,384

175,543

Commission fee

13,844

21,861

Foreign exchange gains

53,90533,950Depreciation

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

Others60,521

37,275

Total non-operating income

299,656

268,631

312,119

315,255

Removal cost of property, plant and equipment

31,05048,879Provision for removal cost

316,524－

Bond issuance cost

119,788－

Non-operating expenses
Interest expenses

OthersTotal non-operating expenses
Ordinary income

－

4,627

779,481368,7612,824,876

3,547,062

5,703

15,653

－

6,839

5,703

22,493Extraordinary income
Insurance income
OthersTotal extraordinary income
Extraordinary loss
4,289

0

Nonrecurring loss－

31,013

Loss on disaster

3,581

47,777

Loss on retirement of non-current assets

Total extraordinary loss

7,870

78,790

Income before income taxes

2,822,708

3,490,764

Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 7 -871,241

1,098,339

1,951,467

2,392,425

133,380

185,805

1,818,087

2,206,619

(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of yen)First nine months of FY3/19(April 1, 2018 – December 31, 2018)

First nine months of FY3/20(April 1, 2019 – December 31, 2019)

1,951,467

2,392,425

ProfitOther comprehensive income
Valuation difference on available-for-sale securities(264,166)

86,051

Foreign currency translation adjustment(70,574)(161,380)

Total other comprehensive income(334,740)(75,328)

1,616,727

2,317,096

Comprehensive income attributable to owners of parent

1,483,346

2,131,290

Comprehensive income attributable to non-controlling interests

133,380

185,805

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)(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 period ended December 31, 2019.

- 9 -