May 14, 2015

Financial Results for the Year Ended March 31, 2015 [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: Hiroshi Maruyama, President and CEO
Inquiries: Kazuhiko Muraishi, Director, Senior Corporate Officer, General Manager of Accounting Dept.
The date of the ordinary general shareholders’ meeting:June 26, 2015
The date of the dividend payment start:
June 29, 2015
The date of filing the securities report:
June 26, 2015
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 2015 (April 1, 2014 - March 31, 2015)(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, 2015
March 31, 2014

% Millions of yen

21,111
20,9710.7(0.5)(Note) Comprehensive income:% Millions of yen

3,166
3,499

(9.5)
4.0

Fiscal year ended March 31, 2015:
Fiscal year ended March 31, 2014:

Net income
per share
Fiscal year ended

March 31, 2015
March 31, 2014

Diluted net income
per share% Millions of yen

3,164
3,090

2.4
(11.5)

3,378 million yen
1,631 million yen

%

1,505
1,093

37.8
(38.7)(107.1%)((17.7%))

Ordinary income to Operating margin
total assets

Return on equity

Yen

Yen

%

%

%

29.14
21.15

―
―

3.1
2.4

3.9
4.1

15.0
16.7

(Reference) Equity in earnings of affiliates:

Fiscal year ended March 31, 2015:
Fiscal year ended March 31, 2014:－ million yen－ million yen(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

84,27077,62150,71547,99858.3
59.9

951.16900.07

As of March 31, 2015
As of March 31, 2014
(Reference) Equity capital:

Net assets

As of March 31, 2015: 49,138 million yen

As of March 31, 2014: 46,499 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

3,478
3,898

(4,772)(4,418)

4,500
15

5,891
2,232

March 31, 2015
March 31, 2014

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, 2014
March 31, 2015

―
―

6.00
6.00

―
―

6.00
6.00

12.00
12.00

620
620

56.7
41.2

1.3
1.2

―

6.00

―

6.00

12.00

Fiscal year ending

March 31, 2016
（Forecasts）

39.0

3. Forecast of Consolidated Earnings for the Year Ending March 2016 (April 1, 2015 - March 31, 2016)(Percentages are changes from the same period of the previous year.)Net salesFirst half
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

10,23020,670

(3.5)
(2.1)

1,190
2,690

(33.1)(15.0)

1,140
2,730

(42.5)(13.7)

710
1,720(33.3)
14.3

13.74
33.29

- 1 -

＊ Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting from changes in scope of consolidation):
Yes New: one company: AIRPORT FACILITIES ASIA PTE. LTD.
(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, 2015:
54,903,750 shares As of March 31, 2014:
54,903,750 shares(including treasury stock)2) Number of treasury stock
As of March 31, 2015:
3,242,446 shares As of March 31, 2014:
3,241,952 shares
3) Average number of shares during Year ended March 31,
Year ended March 31,
51,661,583 shares
51,661,979 sharesthe period
2015:
2014:

(Reference) Summary of Non-consolidated Results
1. Non-consolidated Financial Results for the Year Ended March 2015 (April 1, 2014 - March 31, 2015)(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, 2015
March 31, 2014

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

18,34918,287

0.3
(0.9)

2,507
2,862

(12.4)
11.0

2,723
2,682

1.5
(8.5)

1,424
971

46.7
(40.2)Net income per
share
Fiscal year ended

March 31, 2015
March 31, 2014

Diluted net income
per share

Yen

Yen

27.56
18.79

－
－

Total assets

Net assets(2) Non-consolidated Financial Position

As of March 31, 2015
As of March 31, 2014
(Reference) Equity capital

Net assets per share

Equity ratio

Millions of yen

Millions of yen%

Yen

76,59872,16848,14645,65662.9
63.3

931.95883.76

As of March 31, 2015: 48,146 million yen

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

2. Forecast of Non-consolidated Earnings for the Year Ending March 2016 (April 1, 2015 – March 31, 2016)(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
8,800
(4.8)
Full fiscal year
17,850(2.7)＊ Implementation status of audit procedures

1,060
2,350

(39.4)(13.7)

720
1,590(28.9)
11.7

13.94
30.78

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 “1. Analysis of Business Results andFinancial Position (1) Analysis of Business Results”.

- 2 -1. Analysis of Business Results and Financial Position(1) Analysis of Business Results
During the year ended March 31, 2015, the Japanese economy has been gradually recovering, despite negative impact ofconsumption tax rise in April, due to positive factors including a considerable decrease in import crude oil prices in thesecond half of the fiscal year and an improvement of employment and income conditions under the continued monetaryeasing policies. However, attention should be given to risks that might depress the Japanese economy including thoserelated to prolonged backlash from last-minute demand before consumption tax rise, unfavorable effect of weakening yen,re-rise in the crude oil prices, and downturn in overseas economies.
In the aviation industry, the overall demands for airlines showed a solid growth as the demands for international flights
increased significantly against the previous year’s results due mainly to increased foreign passengers from neighboring
countries visiting Japan by the effect of an increase of the arrival and departure capacity for international flights at Tokyo
International Airport and weak yen. The decline in the crude oil prices in the second half of the fiscal year is also expected
to contribute to lower fuel surcharges. In the aviation industry as a whole, however, airline companies continue to work on
further cost reduction to address a severe environment surrounding the future market such as long-term falling demands indomestic market due to a decrease of population and the entry of Japanese and foreign LCCs into the market, etc.
Also, a shortage of pilots due to the aging, etc., has been a long-standing issue for the entire industry that requires
attention.
In 1-chome District of Tokyo International Airport (former aircraft maintenance area), part of the facility was returned
because major airline companies moved their facilities including the maintenance shop to offshore area as part of thestreamlining measures, resulting in vacancy in the building. In response, we have initiated dismantlement of certain
dilapidated facilities and a fundamental review of area heating & cooling system in 1-chome District since last year.
One of our major customers has been in the process under the Civil Rehabilitation Law, and although we believe that ourreceivables will be mostly protected, continued close attention to the rehabilitation plan is required.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of¥21,111 million (up 0.7% from the previous fiscal year) with contributions from full-scale operation of new property
including an in-flight meal factory completed at the end of the fiscal year ended March 31, 2014, operating income of¥3,166 million (down 9.5%) and ordinary income of ¥3,164 million (up 2.4%), and net income of ¥1,505 million (up37.8%).
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥15,568 million, an increase by ¥710 million (4.8%) from the previous
fiscal year, despite partial cancellation of a tenant contract as part of cost reduction measures by major airline’s groupcompanies, due to full-year operation of an in-flight meal factory and maintenance center at the Tokyo International
Airport completed at the end of the fiscal year ended March 31, 2014, completion of a new apartment in Omori
Higashi, followed by Otorii apartment, for major airline companies near Keikyu Airport line, addition of net sales ofheating & cooling system for individual building in 1-chome District of Tokyo International Airport, and addition ofsales of a newly consolidated subsidiary in Singapore. In terms of cost, depreciation of in-flight meal factory and air
conditioning equipment and expenses such as electricity and utilities increased, and accordingly operating income
decreased by ¥232 million (9.0%) to ¥2,346 million.
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business recorded net sales of ¥3,193 million, a decrease by ¥527 million (14.2%) from theprevious fiscal year as our service in the 1-chome District of Tokyo International Airport was terminated at the endof May 2014 due to a decrease in customers and facility deterioration and shifted to a heating & cooling system forindividual building in Real Estate Business while the business provided by Tokyo Airport Heating & Cooling Co.,
Ltd., a consolidated subsidiary, at the 3-chome District of Tokyo International Airport has shown favorable growth.
Operating income also decreased by ¥29 million (4.6%) to ¥605 million.
(iii) Water Supply & Drainage Service and Other Business- 3 -Net sales in Water Supply & Drainage Service and Other Business decreased by ¥43 million (1.8%) from theprevious fiscal year to ¥2,350 million as a result of reviewing management fees for the waterworks & drainage
management business at the Tokyo International Airport. Operating income also decreased by ¥72 million (25.1%)
to ¥214 million.
Forecast for the fiscal year ending March 31, 2016
Although we expect sales increase from a full-scale operation of an overseas consolidated subsidiary and a fullyear operation of Otorii apartment completed during the fiscal year ended March 31, 2015, because of a return offacilities by major airline companies, the forecast for the fiscal year ending March 31, 2016 is net sales of ¥20,670
million (down 2.1% from the previous fiscal year), operating income of ¥2,690 million (down 15.0%), and ordinary
income of ¥2,730 million (down 13.7%), but we expect profit attributable to owners of parent will increase by 14.3%
to ¥1,720 million as the dismantlement plan of dilapidated facilities is almost completed and extraordinary loss will
decrease.
(2) Analysis of Financial Position(i) Assets, liabilities and net assets
Total assets as of March 31, 2015 amounted to ¥84,270 million, an increase by ¥6,649 million compared toMarch 31, 2014, due to new investments to Sky Residence Otorii and a hangar at Hiroshima heliport as well as
new consolidation of a Singapore subsidiary.
Liabilities increased by ¥3,932 million from March 31, 2014 to ¥33,555 million, mainly due to an increase in debt by
a overseas subsidiary for investments in overseas projects.
Net assets increased by ¥2,717 million compared to March 31, 2014 to ¥50,715 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, 2015 decreased by 1.6 points to 58.3% compared to March 31, 2014.
(ii) Cash Flows
Cash and cash equivalents (“cash”) as of March 31, 2015 amounted to ¥5,891 million, an increase of ¥3,659 million(163.9%) from March 31, 2014. Cash flows from each activity for the year ended March 31, 2015 and their significant
factors are as follows:(Cash flows from operating activities)
Net cash provided by operating activities was ¥3,478 million (previous fiscal year: ¥3,898 million), attributable toa decrease in operating liabilities including accounts payable and unearned revenue despite an increase in net
income.
(Cash flows from investing activities)
Net cash used in investing activities was ¥4,772 million (previous fiscal year: ¥4,418 million used), mainly
attributable to purchase of property, plant and equipment including an apartment near Keikyu Airport line,
reconstruction of a hangar at Hiroshima heliport, and an investment in machinery and equipment for sharedtelecommunications network business in Tokyo International Airport.
(Cash flows from financing activities)
Net cash provided by financing activities was ¥4,500 million (previous fiscal year: ¥15 million provided). This
increase is mainly attributable to an increase in debt to promote overseas business in a Singapore subsidiary.

- 4 -(Reference) Cash Flow Indicators
FY2013/3

FY2014/3

FY2015/3

Equity ratio (%)

62.2

59.9

58.3

Equity ratio at market value (%)

44.0

50.7

43.9

Debt repayment period (years)

2.9

4.3

6.6

Interest coverage ratio (times)

19.4

16.1

11.4

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, 2015 and the YearEnding March 31, 2016
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, 2015 is expected to be ¥12
per share (including interim dividend of ¥6 per share). The dividend for the year ending March 31, 2016 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)
FY3/14(As of March 31, 2014)

FY3/15(As of March 31, 2015)

AssetsCurrent assets
Cash and deposits

2,232,163

2,891,402

Notes and accounts receivable-trade

1,231,205

1,133,796－

3,000,000

2,326,755

3,429,585

Securities
Lease investment assets
Raw materials and supplies

24,81023,395

Deferred tax assets

245,883

306,501

Others

510,514

211,950

6,571,330

10,996,629

152,665,408

151,893,840(102,976,494)(104,553,047)

Buildings and structures, net

49,688,914

47,340,793

Machinery, equipment and vehicles

17,395,206

16,395,378(13,184,550)(11,518,257)

4,210,656

4,877,121

Tools, furniture and fixtures

394,415

239,676

Accumulated depreciation(354,599)(209,626)

39,81630,0509,507,156

9,544,939

757,489

177,653

64,204,031

61,970,556

75,003

41,196

4,594,849

6,764,238

5,102

4,167

1,488,211

323,237

Net defined benefit asset

75,235

180,682

Others648,332

4,105,469

Allowance for doubtful accounts(40,867)(115,948)

Total investments and other assets

6,770,862

11,261,845

Total noncurrent assets

71,049,896

73,273,597

77,621,226

84,270,226

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, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets

Total assets- 6 -(Thousands of yen)
FY3/14(As of March 31, 2014)

FY3/15(As of March 31, 2015)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,205,511

998,571

Short-term loans payable

4,102,092

5,290,218

Accounts payable

4,069,162

1,617,997

Income taxes payable

96,492595,161

Accrued expenses

112,983

801,135

Unearned revenue

838,397

756,115

Provision for bonuses

115,579

121,481

Provision for directors’ bonuses

27,60025,796

Provision for removal cost of property, plant and equipment

375,191

490,991

Others712,852

811,819

11,655,859

11,509,284

Long-term loans payable

12,627,848

16,820,248

Long-term guarantee deposited

4,849,441

4,809,516

Long-term accounts payable-facilities

256,765

205,412Net defined benefit liability

12,3983,146

Provision for directors' retirement benefits
Provision for long-term removal cost of property,
plant and equipment

210,557

207,132

10,178－

Total current liabilities
Noncurrent liabilities

17,967,187

22,045,454

29,623,046

33,554,738

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,921

6,982,921

Retained earnings

33,219,444

34,103,121

Treasury stock(1,562,002)(1,562,347)

Total shareholders’ equity

45,466,463

46,349,795

1,032,562

2,718,548－

69,583

1,032,562

2,788,131

Minority interests

1,499,156

1,577,562

Total net assets

47,998,180

50,715,488

77,621,226

84,270,226

Total noncurrent 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- 7 -(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Thousands of yen)
FY3/14(April 1, 2013 –March 31, 2014)

FY3/15(April 1, 2014 –March 31, 2015)

Net sales

20,971,306

21,111,344

Cost of sales

16,016,243

16,249,240

Gross profit

4,955,063

4,862,104

Selling, general, and administrative expenses
Directors' compensations

291,078

253,173

Salaries and bonuses

444,468

505,279

Provision for bonuses

61,48676,768Provision for directors' bonuses

27,60025,796

Transportation and communication expenses

85,784

99,912

Depreciation

32,792

32,232

Taxes and dues

73,69870,353

OthersTotal selling, general, and administrative expenses
Operating income

439,652

632,913

1,456,558

1,696,426

3,498,505

3,165,678

Non-operating income
67374

Dividends income

91,715334,803

Commission fee

172,685

104,935

Gain on investments in silent partnership

31,364

101,875

Others70,720121,159

Total non-operating income

366,551

663,146

Interest expenses

241,255

295,720

Removal cost of property, plant and equipment

147,755

78,014

Provision for removal cost

375,191

273,366

Others

10,40017,554

Interest income

Non-operating expenses

774,601

664,654

3,090,455

3,164,170

Compensation for remaining book value

－

4,160

Gain on sales of noncurrent assets－

39,873Gain on sales of investment securities

517

263

517

44,296

1,288,986

320,366

Total non-operating expenses
Ordinary income
Extraordinary income

Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets

2,500

2

1,291,486

320,368

1,799,486

2,888,099

Income taxes

532,731889,345

Income taxes - deferred

55,593376,740

OthersTotal extraordinary loss
Income before income taxes and minority interests

Total income taxes
Income before minority interests
Minority interests in income
Net income- 8 -588,324

1,266,085

1,211,162

1,622,013

118,592

116,735

1,092,570

1,505,278

(Consolidated statements of comprehensive income)(Thousands of yen)
FY3/14(April 1, 2013 –March 31, 2014)

FY3/15(April 1, 2014 –March 31, 2015)

1,211,162

1,622,013

Valuation difference on available-for-sale securities

419,508

1,685,987

Foreign currency translation adjustment, before tax－

69,583

419,508

1,755,570

1,630,670

3,377,583

Comprehensive income attributable to owners of the parent

1,512,078

3,260,848

Comprehensive income attributable to minority interests

118,592

116,735

Income before minority interests
Other comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to- 9 -(3) Consolidated Statements of Changes in Net Assets
For the Year ended March 31, 2014 (April 1, 2013 to March 31, 2014)(Thousands of yen)

Shareholders' equity

Capital stock

Balance at the beginning of current period

Retainedearnings

Capital surplus

6,826,100

6,982,921

32,746,818

Treasury stock

Total
shareholder'sequity(1,561,637)

44,994,202

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

Net income

1,092,570

1,092,570(365)

Purchase of treasury stock－

Change of scope of consolidation－

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

(365)

－

－

472,626(365)

472,261

6,826,100

6,982,921

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

45,466,463

Minority
interests

Total
net assets

Accumulated othercomprehensive income
Valuationdifference on
available-forsale securities
Balance at the beginning of current period

613,054

Foreigncurrencytranslation
adjustment－

Total
accumulated
othercomprehensive
income613,054

1,418,893

47,026,149

Changes of items during the period－(619,945)

Net income－

1,092,570

Purchase of treasury stock

－

(365)

Dividends from surplus－

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

419,508

419,508－
80,262499,770419,508－

419,508

80,262

972,031

1,032,562－

1,032,562

1,499,155

47,998,180- 10 -

For the Year ended March 31, 2015 (April 1, 2014 to March 31, 2015)(Thousands of yen)

Shareholders' equity

Capital stock

Balance at the beginning of current period

6,826,100

CapitalsurplusRetainedearnings

6,982,921

33,219,444

Treasury stock

Total
shareholder'sequity(1,562,002)

45,466,463

Changes of items during the period
Dividends from surplus(619,940)

Net income

1,505,278

Purchase of treasury stock(619,940)
1,505,278(345)

Change of scope of consolidation(1,661)(345)(1,661)－

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

883,677(345)

883,332

6,826,100

6,982,921

34,103,121(1,562,347)

46,349,795

Minority
interests

Total
net assets

Accumulated othercomprehensive income
Valuationdifference on
available-forsale securities
Balance at the beginning of current period

1,032,562

Foreigncurrencytranslation
adjustment－

Total
accumulated
othercomprehensive
income1,032,562

1,499,155

47,998,180

Changes of items during the period－(619,940)

Net income－

1,505,278

Purchase of treasury stock

－

(345)

Dividends from surplus－

Change of scope of consolidation(1,661)

Net changes of items other than shareholders' equity

1,685,986

69,583

1,755,569

78,406

1,833,975

Total changes of items during the period

1,685,986

69,583

1,755,569

78,406

2,717,308

Balance at the end of current period

2,718,548

69,583

2,788,131

1,577,562

50,715,488- 11 -

(4) Consolidated Statements of Cash Flows(Thousands of yen)
FY3/14(April 1, 2013 –March 31, 2014)

FY3/15(April 1, 2014 –March 31, 2015)

Income before income taxes and minority interests

1,799,486

2,888,099

Depreciation and amortization
Increase (decrease) in provision for removal cost of
property, plant and equipment
Increase (decrease) in provision for retirement benefits

3,093,338

3,433,918

126,406

105,622(61,278)(9,252)

Decrease (increase) in net defined benefit asset
Increase (decrease) in provision for directors'
retirement benefits
Increase (decrease) in provision for bonuses(75,235)(105,428)(5,807)(3,426)(4,621)

5,902

Cash flows from operating activities

Increase (decrease) in provision for directors’ bonuses

6,563(1,804)

Increase (decrease) in allowance for doubtful accounts

10,26775,081

Interest and dividend income(91,782)(335,177)

Interest expenses

241,255－

295,720

Interest on securities

1,288,986－

Loss on disposal of property, plant and equipment(279)
320,365(517)(39,871)－

Decrease (increase) in notes and accounts receivable(126,992)

97,784

Decrease (increase) in inventories
Net decrease (increase) in lease receivables andinvestment assets
Increase (decrease) in notes and accounts payable

21,365

1,414(385,748)(857,297)(51,545)(206,940)

Increase (decrease) in unearned revenue

24,932(82,792)

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

658,175

Loss (gain) on sales of noncurrent assets
Loss (gain) on sales of investment securities

Increase (decrease) in accrued consumption taxes(334,990)

686,863

Decrease (increase) in other assets(279,567)(3,152,361)

Increase (decrease) in other liabilities(208,447)

65,089Subtotal

4,945,440

3,839,406

Interest and dividends received
Interest paid

91,782(241,496)

335,456(265,744)

Income taxes paid

(897,822)(431,069)

Net cash provided by operating activities

3,897,904

3,478,048(454,632)

Cash flows from investing activities
Purchase of investments in capital of subsidiaries
Proceeds from sales of short-term investment
securities
Purchase of noncurrent assets
Collection of long-term loans receivable
Proceeds from sales of noncurrent assets
Net cash used in investing activities- 12 -

2,697(210,420)－(3,967,261)(5,095,211)

1,164
－

532,791(4,418,032)(4,771,904)

935

(Thousands of yen)
FY3/14(April 1, 2013 –March 31, 2014)

FY3/15(April 1, 2014 –March 31, 2015)

Increase in short-term loans payable

4,500,000

2,302,269

Decrease in short-term loans payable(4,300,000)(1,391,920)

Proceeds from long-term debt

4,000,000

7,465,249

Payments of long-term debt

(3,362,922)(3,177,224)

Proceeds from guarantee deposits received

257,579

318,258

Repayments of guarantee deposits received(422,142)(358,628)

Cash flows from financing activities

Purchase of treasury stock

(365)

(345)

Payment of cash dividends(618,935)(619,292)

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

Net cash used in financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

14,8864,500,037

Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting fromexclusion of subsidiaries from consolidation
Cash and cash equivalents at end of period- 13 -－(1,575)(505,242)

3,204,607

2,737,405－

2,232,163

2,232,163

5,891,402

454,632

(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 pursues 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 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 Business

14,857,660

3,720,062

2,393,584

20,971,306－

20,971,306

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

32,847

3,093,338

6,408,961

859,320

265,021

7,533,302

7,613

7,540,915

Adjustments
Total

Note 1

Note 2

Net sales
Net sales to outside
customers
Inter-segment
net sales/transfers
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.

- 14 -

Fiscal year ended March 2015 (April 1, 2014– March 31, 2015)(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

15,568,025

3,192,863

2,350,456

21,111,344－Inter-segment
net sales/transfers

218,366

825,695

217,590

1,261,651(1,261,651)

15,786,391

4,018,558

2,568,046

22,372,995(1,261,651)

21,111,344

Segment income

2,345,926

605,259

214,493

3,165,678－

3,165,678

Segment assets

62,206,908

6,574,712

1,295,356

70,076,977

14,193,250

84,270,226

Segment liabilities

8,644,035

333,124

628,769

9,605,928

23,948,810

33,554,738

2,755,757

522,955

92,9743,401,686

32,232

3,433,918

1,389,859

596,121578,3962,564,376

4,777

2,569,153

Adjustments
Total

Note 1

Note 2

Net sales

Total

21,111,344

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 -