May 13, 2022

Financial Results for the Year Ended March 31, 2022 [J-GAAP]
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: Toshiaki Norita, President and CEO
Inquiries: Takahiro Hama, Corporate Officer, General Manager of Accounting Dept. TEL: +81-3-3747-0251
The Date of the Ordinary General Shareholders’ Meeting: June 29, 2022
The Date of the Dividend Payment Start:
June 30, 2022
The Date of Filing the Securities Report:
June 29, 2022
Preparation of Earnings Presentation Material:
Yes
Holding of Earnings Announcement:
Yes (for analysts)(Figures are rounded off to the nearest million yen.)

1. Consolidated Financial Results for the Year Ended March 2022 (April 1, 2021 - March 31, 2022)(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
Fiscal year ended

Millions of yen%

23,77724,155
24,155

March 31, 2022
March 31, 2021
(Note) Comprehensive income:%Millions of yen%

Millions of yen

2,962(18.1)
3,617
(4.8)
△4.8
1,078
3,617
million yen△4.8(－%)

Fiscal year ended March 31, 2021:(661) million yen

Net income
per share

Diluted net income
per share

Fiscal year ended

March 31, 2022
March 31, 2021

Millions of yen

(1.5)
3,280
(14.3)
3,831
(2.8)
(8.4)
△2.8)
△8.4)
Fiscalyear ended March
3,83131, 2022:
△2.8
△8.4

821
(933)
△933
△933

%

―
―
―

(－%)

Ordinary income toOperating margin
total assets

Return on equity

Yen

Yen

%

%

%

16.45
(18.71)

16.39

1.5
(1.7)

2.9
3.5

13.7
15.8

(Reference) Equity in earnings of affiliates:―

Fiscal year ended March 31, 2022:
Fiscal year ended March 31, 2021:(2) Consolidated Financial Position
Total assets－ million yen－ million yen

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

102,468
55,30651.4
1,055.28
100,429
54,96452.1
1,049.44
100,429
54,964yen As of March 31, 2021:
52.152,378 million yen 1,049.44
As of March 31, 2022: 52,701 million

As of March 31, 2022
As of March 31, 2021
(Reference) Equity capital:(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

8,467
4,758
4,758

(449)
(2,704)△2,704△2,704(5,117)(1,907)△1,907△1,907

9,612
6,583
6,583

March 31, 2022
March 31, 2021
2. Dividends

Dividends per share

Q1
Fiscal year ended

March 31, 2021
March 31, 2022
Fiscal year ending

March 31, 2023
(Forecasts)

Q2
Yen

Q3
Yen

Q4
Yen

AnnualTotal
dividends(annual)Yen

YenMillions of yen

―
―

7.00
7.00

―
―

7.00
7.00

14.00
14.00

698
699
9

―

7.00

―

7.00

14.00

Dividends to
net assets(consolidated)

Payout ratio(consolidated)
%

%

85.1

1.3
1.3

―
63.6

3. Forecast of Consolidated Earnings for the Year Ending March 2023 (April 1, 2022 - March 31, 2023)(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

12,29824,443

3.2
2.8

1,321
2,087

(36.3)△36.4(36.4)
△36.4

1,178
1,601

(40.1)△45.9(45.9)
△45.9

723
1,099

(44.7)
33.9

14.47
22.00

- 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.: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: Yes
4) Restatement of revisions: No(3) Number of issued shares (common shares)
1) Number of issued shares
As of March 31, 2022:(including treasury stock)2) Number of treasury stock
As of March 31, 2022:
3) Average number of shares during Year ended March 31,
the period
2022:

52,979,350 shares As of March 31, 2021:

52,979,350 shares

3,038,541 shares As of March 31, 2021:
Year ended March 31,
2021:

3,068,347 shares

49,933,408shares

49,894,036 shares(Reference) Summary of Non-consolidated Results
1. Non-consolidated Financial Results for the Year Ended March 2022 (April 1, 2021 - March 31, 2022)(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, 2022
March 31, 2021

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

20,86820,812

0.2
(3.6)
△3.6

2,575
2,455

4.8
(18.6)
△18.6

2,599
2,510

3.5
(17.5)△17.5

636(1,228)△1,228Net income
per share
Fiscal year ended

March 31, 2022
March 31, 2021

%

―
―
―

Diluted net income
per share
Yen

Yen

12.75
(24.61)

12.71―(2) Non-consolidated Financial Position
Total assets

Net assets

Millions of yen

As of March 31, 2022
As of March 31, 2021
(Reference) Equity capital

Equity ratio

Millions of yen

Net assets per share%

Yen

91,45049,47754.0
89,38049,87955.7
As of March 31,
2022: 49,401 million yen As of March 31, 2021: 49,790 million yen
89,380989.19997.58

2. Forecast of Non-consolidated Earnings for the Year Ending March 2023 (April 1, 2022 – March 31, 2023)(Percentages are changes from the same period of the previous year.)Net salesFirst half
Full fiscal year

Ordinary income

Net income pershare

Net income

Millions of yen%

Millions of yen%

10,54620,995

0.5
0.6

878
1,176

(46.8)(54.8)△54.8

Millions of yen%

Yen

600 (49.0)
12.01
891
40.1
17.84
891
*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 theearnings forecasts, please refer to page 5 “1. Summary of Operating Results, etc. (4) Earnings forecast for the fiscal year ending March2023”.

- 2 -1. Summary of Operating Results, etc.
(1) Summary of Operating Results for the Year Ended March 2022
During the year ended March 31, 2022, Japanese economy showed a sign of recovery after a decline in personal
consumption due to COVID-19, but the recovery has been slow with GDP falling below the pre-COVID-19 level. There
are also uncertainties caused by the Ukraine crisis, etc. which started in late February 2022, requiring close monitoringof downside risks from a rise in raw material prices, etc.
In an aviation industry, although flights have continued to be reduced or suspended, quasi-state of emergency, which
had been implemented since early January 2022, were fully lifted in late March 2022, and we expect passenger demand
will increase as a result of further easing of border restrictions by the government and the progress in various initiatives
to prevent the spread of infections and continue socioeconomic activities while remaining alert to another spread of
infections.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of¥23,777 million (down 1.5% from the previous fiscal year) due to deduction from net sales of debt forgiveness of rent
receivables from airline companies in support of those facing financial difficulties resulting from the COVID-19
pandemic despite the full-year operation of a new facility completed in the year ended March 31, 2021. Operating income
was ¥3,280 million (down 14.3%) and ordinary income was ¥2,962 million (down 18.1%) mainly due to an increase inremoval cost of property, plant and equipment.
(Reference: For the year ended March 31, 2021, debt forgiveness of rent receivables was recorded as extraordinary
loss. If such loss had been deducted from net sales in the same manner as this year, net sales, operating income, andordinary income would have been ¥22,784 million, ¥2,460 million, and ¥2,247 million, respectively, resulting in a yearon-year increase for the year ended March 31, 2022 in these three items.)
We also recorded gain on sales of investment securities in extraordinary income while recording impairment loss in
extraordinary loss as we are considering to sell rental properties for hotel in Kyoto, where inbound demand has yet torecover, with an aim to further improve asset efficiency. As a result, profit attributable to owners of parent was ¥821
million (¥933 million of loss attributable to owners of parent in the previous fiscal year).
Amid such circumstances, we are also working to expand business domains and acquired land and a building inKoshigaya City, Saitama Prefecture and started leasing them to a modified car company in December 2021. In overseas,
our group company offered financing for procurement of aircraft engines to new customers in March 2022. We alsoestablished the “Innovation Promotion Division” on April 1, 2022 in charge of exploring new business opportunities
inside and outside the airports and promoting creation of new businesses. Taking advantage of our know-how
accumulated over the years in our businesses inside and outside the airports, the Company and the Group aim to expand
business domains outside the airports and overseas.
In terms of promoting sustainability, we set the basic policy in December 2021 and established “Sustainability
Promotion Committee” effective January 1, 2022, where we have been discussing measures with an intention to makeaggressive efforts to, for example, reduce CO₂ emissions and promote D&I.
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥18,845 million (down 0.5% from the previous fiscal year) as debt
forgiveness of rent receivables to support airline companies was deducted from net sales, despite the full-year
operation of a dormitory for international students completed in March 2021. Operating income was ¥2,862 million(down 2.0%).

(ii) Area Heating & Cooling Business
Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport Heating & CoolingCo., Ltd. recorded net sales of ¥2,957 million (down 12.5% from the previous fiscal year) due to deduction fromnet sales of debt forgiveness of heat charge receivables to support airline companies while sales slightly increased.
Operating income was ¥452 million (down 58.8%) due to increases in raw material costs of electricity and gas.

(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥1,974 million (up 7.6% from theprevious fiscal year) and operating loss of ¥33 million (operating loss of ¥188 million in the previous fiscal year)
due to an increase in water supply and drainage usage compared to a year earlier when the number of airport
users dropped sharply, although not as much as expected, as well as expansion of shared telecommunications
network.

- 3 -(2) Summary of Financial Position as of March 31, 2022
(Assets)
Total assets as of March 31, 2022 amounted to ¥102,468 million, an increase by ¥2,038 million compared to March 31,
2021, mainly due to recording of removal cost corresponding to asset retirement obligations while depreciation of buildings,
etc. and impairment loss associated with a plan to sell hotels held in Kyoto were recorded.
(Liabilities)
Total liabilities as of March 31, 2022 amounted to ¥47,161 million, an increase by ¥1,697 million compared to March 31,
2021, mainly due to recording of asset retirement obligations related to the costs to remove buildings in the 1-chome
District of Tokyo International Airport to satisfy the obligation to restore the area to its original state as a disaster risk
management measure in the area progressed, making it possible to reasonably estimate the timing of removal while longterm loans payable decreased.
(Net assets)
Total net assets as of March 31, 2022 amounted to ¥55,306 million, an increase by ¥341 million compared to March 31,
2021, mainly due to an increase in retained earnings from recording of profit attributable to owners of parent and dividends
from surplus.
As a result, equity ratio as of March 31, 2022 decreased by 0.7 points to 51.4% compared to March 31, 2021.
(3) Summary of Cash Flows for the Fiscal Year Ended March 31, 2022
Cash and cash equivalents (“cash”) as of March 31, 2022 amounted to ¥9,612 million, an increase of ¥3,029 million fromMarch 31, 2021.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥8,467 million (previous fiscal year: ¥4,758 million provided), mainly
attributable to recording of income before income taxes, collection of operating loans receivable and recording of noncash
items including depreciation and impairment loss despite a decrease in consumption taxes payable.
(Cash flows from investing activities)
Net cash used in investing activities was ¥449 million (previous fiscal year: ¥2,704 million used), mainly attributable topurchase of non-current assets despite proceeds from sales of investment securities.
(Cash flows from financing activities)
Net cash used in financing activities was ¥5,117 million (previous fiscal year: ¥1,907 million used), mainly attributable topayments of long-term debt and payment of cash dividends.
(Reference) Cash Flow Indicators
FY2020/3

FY2021/3

FY2022/3

Equity ratio (%)

51.5

52.1

51.4

Equity ratio at market value (%)

20.3

30.9

28.0

Debt repayment period (years)

5.2

7.2

3.6

Interest coverage ratio (times)

16.5

13.0

26.8

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.

- 4 -(4) Earnings forecast for the fiscal year ending March 2023
Fiscal year ending March 31, 2023 is the first year of the Medium- to Long-Term Management Plan discussed below.
While we expect recovery of domestic passenger demand from the COVID-19 pandemic, because there are concerns overan increase in raw material costs due to a rise in crude oil, etc., we did not incorporate debt forgiveness of rent and heatcharge receivables which was deducted from net sales for the fiscal year ended March 31, 2022. In addition, there will be
an increase in amortization related to asset retirement obligations associated with the start of the Haneda Airport 1-Chomeproject. Accordingly, the forecast for the fiscal year ending March 31, 2023 is net sales of ¥24,443 million (up 2.8% fromthe previous fiscal year), operating income of ¥2,087 million (down 36.4%), ordinary income of ¥1,601 million (down
45.9%), and profit attributable to owners of parent of ¥1,099 million (up 33.9%).
(5) Development of the New Medium- to Long-Term Management Plan
The Company has developed a new Medium- to Long-Term Management Plan covering seven years from FY ending
March 2023 to March 2029 for the Airport Facilities Group.
The Plan will strengthen the Group’s airport-related operations, the core businesses, by steadily implementing following
three priority measures. At the same time, the Plan aims to develop a capital efficiency-conscious business portfolio that isresilient against risks and lay the foundation for the next stage by diversifying revenue sources through engagement in nonasset businesses and by expanding profits.
(1) Haneda Airport 1-Chome project
The Group aims to expand its airport-related assets and improve profitability by reorganizing and rebuilding its facilities
in the Haneda Airport 1-Chome area, where the Company was founded, into higher-quality ones that meet customers'
needs in accordance with the disaster risk management for the area.
(2) Expansion of non-asset businesses
The Group aims to increase fee revenue by taking advantage of its know-how and also enter into real estate fundformation and asset management businesses by building an excellent property portfolio through the acquisition ofproperties outside airports and a shift to higher-value properties.
(3) Improvement of the profitability of existing businesses
The Group aims to improve profitability through capital efficiency-conscious portfolio restructuring, including
withdrawal and sale, with regard to properties with inferior growth potential or profitability.
Through these measures, we aim to achieve the following consolidated targets in the fiscal year ending March 31, 2029,
the final year of the Plan: net sales of ¥32 billion, operating income of ¥5 billion, and profit attributable to owners of parentof ¥3.3 billion.
Please refer to the Medium- to Long-Term Management Plan separately released today for more details.
(6) Basic Policy Regarding Distribution of Earnings and Dividends for the Year Ended March 31, 2022 and the YearEnding March 31, 2023
While we focus on maintenance of stable management base and enhancement of financial strength, we also consider
profit return to shareholders is important and have been striving to stably return profits to shareholders with the dividend
payout ratio of over 30% in consideration of current performance and future outlook.
Although we recorded impairment loss for the fiscal year ended March 31, 2022 as described above, based on the above
policy and comprehensive consideration of our financial condition, etc., we plan to pay annual dividend of ¥14 per share(interim dividend of ¥7 and year-end dividend of ¥7) for the fiscal year ended March 31, 2022.
For the fiscal year ending March 31, 2023, we aim for payout ratio of over 40% and plan to pay annual dividend of ¥14(including interim dividend of ¥7) as in the past.

2. Basic Policy Regarding Selection of Accounting Standards
The Group adopts Japanese Accounting Standards to ensure comparability with domestic sector peers.

- 5 -3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Thousands of yen)
FY3/21(As of March 31, 2021)

FY3/22(As of March 31, 2022)

AssetsCurrent assets
Cash and deposits

6,583,181

9,612,726

Notes and accounts receivable-trade

1,373,918

1,303,500

Lease receivables and investment assets

10,502,602

10,548,425

Operating loans

3,586,074

2,999,771

Raw materials and supplies

15,877

15,817

Others146,132

103,617

22,207,786

24,583,859

170,103,670

174,578,069(123,525,954)(126,917,133)

Buildings and structures, net

46,577,715

47,660,935

Machinery, equipment and vehicles

20,381,139

20,342,253(13,980,546)(14,488,757)

6,400,593

5,853,495

Tools, furniture and fixtures

1,105,982

1,167,685

Accumulated depreciation(795,346)(906,910)

Tools, furniture and fixtures, net

310,636

260,775

Land

13,985,705

13,386,664

Construction in progress

1,416,281

1,523,927

Total property, plant and equipment

68,690,931

68,685,798

Software202,364

544,968

Software in progress

463,525－

Others19,813

19,310Total intangible assets

685,702564,279

7,092,761

6,555,547

931

531

Deferred tax assets

906,445

1,240,345

Net defined benefit asset

228,866

232,963

Others626,255

614,955

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

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

Accumulated depreciation
Machinery, equipment and vehicles, net

Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable

Total investments and other assets

8,844,993

8,634,077

Total non-current assets

78,221,628

77,884,155

100,429,415

102,468,014

Total assets- 6 -(Thousands of yen)
FY3/21(As of March 31, 2021)

FY3/22(As of March 31, 2022)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,079,625

1,778,043

Short-term loans payable

6,325,177

5,131,648

Accounts payable

1,131,097

1,705,873

Income taxes payable

156,069

813,465

Accrued expenses

102,802106,714

Unearned revenue

1,100,926

1,095,026

Provision for bonuses

129,812

144,825

Provision for bonuses for directors (and otherofficers)

28,35551,880

Provision for removal cost of property, plant and equipment

78,011

7,605

Others386,666

216,114

10,518,542

11,051,197

Bonds payable

6,100,000

6,100,000

Long-term loans payable

22,287,170

19,524,613

Long-term guarantee deposited

6,163,216

6,127,603

Long-term accounts payable-other

260,254

256,789

Deferred tax liabilities

22,566

31,968Provision for removal cost of property, plant and equipment

112,793

183,851－

3,885,762

Total current liabilities
Non-current liabilities

Asset retirement obligations

34,946,000

36,110,587

45,464,542

47,161,785

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,890

6,982,890

Retained earnings

38,680,850

38,799,813

Treasury stock(1,700,228)(1,683,721)

Total shareholders’ equity

50,789,611

50,925,081

Valuation difference on available-for-sale securities

2,054,158

1,714,018

Foreign currency translation adjustment(464,980)

62,452

Total accumulated other comprehensive income

1,589,177

1,776,471

Subscription rights to shares

89,284

76,178Non-controlling interests

2,496,798

2,528,497

Total net assets

54,964,872

55,306,229

100,429,415

102,468,014

Total non-current 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)
FY3/21(April 1, 2020 –March 31, 2021)
24,155,122
18,441,101
5,714,020(Thousands of yen)
FY3/22(April 1, 2021 –March 31, 2022)
23,777,481
18,405,354
5,372,127

287,582595,963
83,347

264,873
598,044
98,30528,35551,880348－

63,47927,740162,756
633,086

63,08089,287
162,175
763,649

Total selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Commission fee
Foreign exchange gains
Gain on reversal of provision for removal cost of
property, plant and equipment
Others

1,882,657
3,831,363

2,091,295
3,280,831

1
37,77022,142－

1
45,291
99,046
1,352

73,210－73,49857,718

Total non-operating income
Non-operating expenses
Interest expenses
Removal cost of property, plant and equipment
Provision for removal cost
Foreign exchange losses
OthersTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Insurance income
Subsidy income
Others206,623

203,411358,723
50,512
－
1,401
9,511
420,148
3,617,837

309,779
130,192
78,663－3,425
522,060
2,962,181－
144,067
163,832
12,464

456,060－－
6,775

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 extraordinary income
Extraordinary loss
Loss on retirement of non-current assets
Loss on disaster
Loss on response to new infectious disease
Impairment loss

320,364

462,835

48,604
42,8391,370,438
3,118,888

266,392－－
1,463,674

Total extraordinary loss
Income (loss) before income taxes
Income taxes
Income taxes - deferred

4,580,769(642,567)
503,295(363,261)

1,730,066
1,694,950
980,641(177,130)

Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

140,033(782,601)
151,185(933,787)

803,511
891,43970,027
821,411- 8 -(Consolidated Statements of Comprehensive Income)(Thousands of yen)
FY3/21(April 1, 2020 –March 31, 2021)

FY3/22(April 1, 2021 –March 31, 2022)(782,601)

891,439

Valuation difference on available-for-sale securities

371,715(340,139)

Foreign currency translation adjustment(250,777)

527,433

Total other comprehensive income

120,937

187,293(661,663)

1,078,732(812,849)

1,008,704

151,185

70,027

Profit (loss)
Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 9 -(3) Consolidated Statements of Changes in Net Assets
For the Year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(Thousands of yen)

Shareholders’equity

Balance at the beginning of current period

Capital stock

Capital surplus

6,826,100

6,982,890

Retainedearnings

Treasury stock

Total
shareholder'sequity(1,737,829)

52,386,487

40,315,327

Changes of items during the period
Dividends from surplus(698,279)

Loss attributable to owners of parent(933,787)(698,279)(933,787)

Purchase of treasury stock
Disposal of treasury stock(2,411)

(21)

(21)

37,62235,211

Net changes of items other than shareholders’ equity－

Total changes of items during the period
Balance at the end of current period－－(1,634,477)

37,601(1,596,876)

6,826,100

6,982,890

38,680,850(1,700,228)

50,789,611

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

1,682,442

Foreigncurrencytranslation
adjustment(214,202)

Subscription
Totalrightsaccumulated
to shares
othercomprehensive
income1,468,239

94,722

Noncontrollinginterests

2,383,942

Total
net assets

56,333,393

Changes of items during the period
Dividends from surplus－(698,279)

Loss attributable to owners of parent－(933,787)

Purchase of treasury stock

－

(21)

Disposal of treasury stock－

35,211

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

371,715(250,777)

120,937(5,438)112,856

228,355

371,715(250,777)

120,937(5,438)112,856(1,368,520)

2,054,158(464,980)

1,589,177

89,284

2,496,798

54,964,872- 10 -

For the Year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Thousands of yen)

Shareholders’equity

Balance at the beginning of current period

Capital stock

Capital surplus

6,826,100

6,982,890

Retainedearnings

Treasury stock

Total
shareholder'sequity(1,700,228)

50,789,611

38,680,850

Changes of items during the period
Dividends from surplus(698,963)(698,963)

Profit attributable to owners of parent

821,411

821,411Purchase of treasury stock
Disposal of treasury stock

(113)

(113)

(3,484)

16,62013,135

Net changes of items other than shareholders’ equity－

Total changes of items during the period
Balance at the end of current period－－

118,963

16,506

135,470

6,826,100

6,982,890

38,799,813(1,683,721)

50,925,081

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

2,054,158

Foreigncurrencytranslation
adjustment(464,980)

Subscription
Totalrightsaccumulated
to shares
othercomprehensive
income1,589,177

89,284

Noncontrollinginterests

2,496,798

Total
net assets

54,964,872

Changes of items during the period
Dividends from surplus－(698,963)

Profit attributable to owners of parent－

821,411Purchase of treasury stock

－

(113)

Disposal of treasury stock
Net changes of items other than shareholders’ equity

13,135－(340,139)

527,433

187,293(13,105)

Total changes of items during the period(340,139)

Balance at the end of current period

1,714,018

527,433

187,293(13,105)

31,698341,356

62,452

1,776,471

76,1782,528,497

55,306,229- 11 -

31,698205,886

(4) Consolidated Statements of Cash Flows(Thousands of yen)
FY3/21(April 1, 2020 –March 31, 2021)

FY3/22(April 1, 2021 –March 31, 2022)(642,567)

1,694,950

Depreciation

4,263,726

4,135,788

Impairment loss

3,118,888

1,463,674

42,839－(226,392)

652(79,342)(4,097)(2,436)－(5,271)

15,013

Cash flows from operating activities
Income (loss) before income taxes

Loss on disaster
Increase (decrease) in provision for removal cost of
property, plant and equipment
Decrease (increase) in net defined benefit asset
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors’ bonuses

1,640

23,525Interest and dividend income(37,772)(45,292)

Insurance income(144,067)－

Subsidy income(163,832)－
28,595

Share-based compensation expenses

29,700Interest expenses

358,723

309,779

Loss (gain) on sale of investment securities－
48,604(456,060)(107,032)

70,417

Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable

266,392

Decrease (increase) in inventories
Net decrease (increase) in lease receivables andinvestment assets
Decrease (increase) in operating loans receivable(4,777)59(3,370,897)

325,918

1,016,029

1,025,968

Increase (decrease) in notes and accounts payable(23,696)

698,405

Increase (decrease) in unearned revenue(16,066)(8,224)

Increase (decrease) in accrued expenses(680,058)

8,814

Increase (decrease) in accrued consumption taxes

388,390(376,407)

Decrease (increase) in other assets

2,140,502

23,649

Increase (decrease) in other liabilities(160,173)(127,144)

Subtotal

5,744,661

9,074,376Interest and dividends received
Interest paid

37,772(363,709)

45,292(315,854)

Proceeds from insurance income

144,067－

Payments for loss on disaster(57,141)－

Subsidies received

163,832

Income taxes paid

(911,392)－(336,090)

Net cash provided by operating activities

4,758,089

8,467,723

Cash flows from investing activities
Purchase of non-current assets(2,661,640)(957,793)

Purchase of investment securities(14,277)(31,186)

Proceeds from sale of investment securities－

529,022

Proceeds from distributions from investment
partnerships

－

2,639

Payments of leasehold and guarantee deposits(29,010)Proceeds from collection of long-term loans receivable

400

－
400

Others－

7,727(2,704,528)(449,190)

Net cash used in investing activities- 12 -

(Thousands of yen)
FY3/21(April 1, 2020 –March 31, 2021)

FY3/22(April 1, 2021 –March 31, 2022)

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

1,500,000

1,100,000

Decrease in short-term loans payable(2,206,398)(1,100,000)

Proceeds from long-term debt

4,431,960

1,074,218

Payments of long-term debt

(4,873,607)(5,419,572)

Proceeds from issuance of bonds

100,000－

Proceeds from guarantee deposits received

282,092

103,894

Repayments of guarantee deposits received(405,447)(139,506)

Proceeds from sales of treasury stock

73

30

Purchase of treasury stock

(21)

(113)

Payment of cash dividends(698,069)(698,532)

Cash dividends paid to non-controlling interests(38,329)(38,329)(1,907,747)(5,117,911)

Effect of exchange rate change on cash and cash equivalents(81,296)

128,923

Net increase in cash and cash equivalents

64,5183,029,544

Cash and cash equivalents at beginning of period

6,518,663

6,583,181

Cash and cash equivalents at end of period

6,583,181

9,612,726

Net cash provided by financing activities- 13 -

(Segment Information, etc.)[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 resourcesand evaluate 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 Basisfor 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, assets, liabilities, and other items by reportable segments
Fiscal year ended March 2021 (April 1, 2020 – March 31, 2021)(Thousands of yen)
Reportable Segment
Area Heating &Real Estate
Cooling
Business
Business

Water Supply &Drainage
Service andOther Business

Total

Carrying Amounton Consolidated
Statements ofIncomeAdjustments(Note)Net sales
Net sales to outside
customers

18,940,904

3,379,600

1,834,617

24,155,122－

24,155,122

Inter-segment
net sales/transfers

259,243835,351

226,441

1,321,036(1,321,036)－

19,200,148

4,214,951

2,061,058

25,476,158(1,321,036)

24,155,122

Segment income (loss)

2,922,033

1,097,954(188,624)

3,831,363－

3,831,363

Segment assets

79,804,989

8,743,957

1,229,057

89,778,005

10,651,410

100,429,415

Segment liabilities

40,687,346

2,492,381

129,192

43,308,920

2,155,621

45,464,542

Depreciation andamortization

3,446,734

587,032

202,218

4,235,986

27,7404,263,726

Increase in property, plantand equipment andintangible assets

1,768,708

468,943

195,677

2,433,328

136,5692,569,898

Total

Other items(Note) Adjustments represent elimination of intersegment transactions.

- 14 -

Fiscal Year Ended March 2022 (April 1, 2021 - March 31, 2022)(Thousands of yen)
Reportable Segment
Area Heating &Real Estate
Cooling
Business
Business

Water Supply &Drainage
Service andOther Business

Total

Carrying Amounton Consolidated
Statements ofIncomeAdjustments(Note)Net sales
Net sales to outside
customers

18,845,473

2,957,070

1,974,937

23,777,481－

23,777,481

Inter-segment
net sales/transfers

257,068

743,993

221,901

1,222,962(1,222,962)－

19,102,541

3,701,064

2,196,838

25,000,444(1,222,962)

23,777,481

Segment income (loss)

2,862,742

452,032(33,944)

3,280,831－

3,280,831

Segment assets

80,077,526

8,589,700

1,130,227

89,797,455

12,670,559

102,468,014

Segment liabilities

42,213,706

2,262,713

130,561

44,606,980

2,554,804

47,161,785

Depreciation andamortization

3,351,864

576,646

117,989

4,046,500

89,287

4,135,788

Increase in property, plantand equipment andintangible assets

5,253,129

252,736

12,437

5,518,303

7,273

5,525,577

Total

Other items(Notes) Adjustments represent elimination of intersegment transactions.

- 15 -