October 27, 2016

Financial Results for the Second Quarter of the Year Ending March 31, 2017 [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: Hiroshi Maruyama, President and CEO
Inquiries: Takahiro Hama, General Manager of Accounting Dept. TEL: +81-3-3747-0251
The date of filing the quarterly securities report:
November 7, 2016
The date of the dividend payment start:
November 24, 2016
Preparation of quarterly earnings presentation material:Yes
Holding of quarterly earnings announcement:
Yes (for analysts)(Figures are rounded off to the nearest million yen.)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 2017 (April 1, 2016 - September 30, 2016)(1) Consolidated Business Results(Percentages are changes from the same period of the previous year.)
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
First six months ended

Millions of yen

September 30, 2016
September 30, 2015

10,85010,338% Millions of yen

5.0(2.5)(Note) Comprehensive income:% Millions of yen

2,047
1,566

30.7(11.9)

First six months ended September 30, 2016:
First six months ended September 30, 2015:

Basic earnings
per share% Millions of yen

2,091
1,537

36.1
(22.5)

%

1,261
885

42.5
(16.9)

604 million yen ((20.4 %))760 million yen ((55.4 %))Diluted earnings
per shareFirst six months endedYen

Yen

September 30, 2016
September 30, 2015

24.42
17.13

24.37
17.13

(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%Yen

85,632
85,21451,93151,64458.4
58.5

968.39965.69As of September 30, 2016
As of March 31, 2016
(Reference) Equity capital:Net assets

As of September 30, 2016: 50,034 million yen

As of March 31, 2016: 49,888 million yen

2. Dividends
Dividends per share

Q1
FY ended March 31, 2016
FY ending March 31, 2017
FY ending March 31, 2017 (Forecasts)

Q2

Q3

Q4

Annual

Yen

Yen

Yen

Yen

Yen－－

6.00
6.00

－

6.00

12.00

―6.00

12.00

(Note) Changes in the latest forecasts released: No

3. Forecast of Consolidated Earnings for the Year Ending March 2017 (April 1, 2016 - March 31, 2017)(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

21,650

4.6

3,550

20.6

3,330

4.9

2,140

10.6

41.42

(Note) Changes in the latest forecasts released: Yes

The forecast was slightly revised based on the Medium-term Management Plan disclosed separately.

- 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. Summary Information (Other), (2) Application of Specific Accounting Treatments in Preparing theQuarterly Consolidated Financial Statements” on page 4.

(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 September 30, 2016:treasury stock)2) Number of treasury stock
As of September 30, 2016:
3) Average number of shares during
the period

First six months ended
September 30, 2016:

54,903,750 shares As of March 31, 2016:

54,903,750 shares

3,235,769 shares As of March 31, 2016:

3,242,974 shares

51,661,977 shares First six months ended
September 30, 2015:

51,661,062 shares* Implementation status of quarterly review procedures
The quarterly review procedures stipulated in the Financial Instruments and Exchange Act are not applicable to this Financial Results report, andthe procedures have not been completed when this Financial Results report was disclosed.

* 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 September 30, 2016 (3)Qualitative Information on Consolidated Earnings Forecast” on page 4.

- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended September 30, 2016
(1) Explanation about Business Results
During the six months ended September 30, 2016, while Japanese economy showed a moderate improvement in incomeand employment environment as a result of the continued negative interest rates policy introduced by the Bank of Japan inlate January, such recovery seemed to come to a temporary halt due to domestic factors including the earthquake inKumamoto in April and the impact of wind and flood damages in summer season, and global factors including thefluctuations in the financial and capital market as a consequence of the repeated terrorist attacks in Europe and the Brexit inaddition to the economic downturn in China.
In the aviation industry, the demand for international flight continues to grow due to an increase of inbound visitors toJapan and a significant increase of outbound travelers in summer season, and domestic flights also showed a slight increase.
And because the fuel cost started to increase slightly from the bottomed-out level and the current market environment issevere for both international and domestic flights due to factors including expansion by LCCs and a competition with
Shinkansen, airline companies are working on expansion of route network as well as further cost reduction by measures
such as increasing advanced flight equipment with high fuel consumption efficiency and consolidating facilities.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of¥10,850 million (up 5.0% from the same period of the previous year) due to an improved occupancy ratio in tenants andcost reduction of electricity and gas, operating income of ¥2,047 million (up 30.7%), ordinary income of ¥2,091 million (up36.1%), and profit attributable to owners of parent of ¥1,261 million (up 42.5%).
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥8,007 million (up 5.3% from the same period of the previous year), due
to an improved occupancy ratio of tenants around Tokyo International Airport and Kansai International Airport, andincreased sales of a consolidated subsidiary in Singapore. Operating income was ¥1,318 million (up 30.8 %).
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business recorded net sales of ¥1,669 million (up 1.5% from the same period of theprevious year) due to a steady growth of sales from cooling service in the reclaimed land area offshore TokyoInternational Airport by Tokyo Airport Heating & Cooling Co., Ltd., a consolidated subsidiary. Operating income
was ¥623 million (up 30.6 %) due to decreased rates of electricity and gas.
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥1,173 million (up 7.6% from the same
period of the previous year ) as a result of a solid growth in sales of water supply and drainage usage due to a
growing number of passengers at Tokyo International Airport and the operation of solar power plant in Mizunami,
Gifu. Operating income was ¥105 million (up 30.2 %).

(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of September 30, 2016 amounted to ¥85,632 million, an increase by ¥417 million compared to March 31,
2016, due to an increase in operating loans of a subsidiary in Singapore, etc.
(Liabilities)
Liabilities as of September 30, 2016 amounted to ¥33,701 million, an increase by ¥130 million from March 31, 2016, due
to an increase in guarantee deposits received from new tenants, in addition to an increase in loans payable of a subsidiary inSingapore.
(Net assets)
Net assets as of September 30, 2016 increased by ¥288 million compared to March 31, 2016 to ¥51,931 million mainly due
to an increase in retained earnings.

- 3 -As a result, equity ratio as of September 30, 2016 decreased by 0.1 points to 58.4% compared to March 31, 2016.
(3) Qualitative Information on Consolidated Earnings Forecast
Consolidated Earnings Forecast for the Year Ending March 2017, announced in the Financial Results for the Year Ended
March 31, 2016 [J-GAAP] (Consolidated) dated May 12, 2016, was slightly revised up in all items based on the Mediumterm Management Plan disclosed separately.

2. Summary Information (Other)(1) Changes in Material Subsidiaries during the Period under Review
Not applicable.
(2) Application of Specific Accounting Treatments in Preparing the Quarterly Consolidated Financial Statements
Specific accounting treatments in preparing the quarterly consolidated financial statements
Tax expenses are calculated as income before income 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 September 30, 2016.
(3) Changes in Accounting Policies and Estimates, and Restatements
Not applicable.

3. Material Events concerning Going Concern
Not applicable.

- 4 -4. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY3/16(As of March 31, 2016)

Second quarter of FY3/17(As of September 30, 2016)

AssetsCurrent assets
Cash and deposits

4,974,638

3,011,940

Notes and accounts receivable-trade

1,006,211

1,104,106

Securities

1,000,000－

Lease receivables and investment assets

3,874,634

5,661,448

Operating loans

5,392,481

6,147,470

Raw materials and supplies

13,083

12,982

Deferred tax assets

165,175

165,175

Others141,027

1,766,386

16,567,252

17,869,510

Buildings and structures, net

45,110,286

44,880,278

Machinery, equipment and vehicles, net

5,053,144

4,975,848

38,91039,565Land

9,592,5289,592,528

Construction in progress

1,562,242

1,431,860

Total property, plant and equipment

61,357,112

60,920,081

25,064

24,178

5,976,316

5,368,163

3,429

3,126

Deferred tax assets

468,895

655,111Net defined benefit asset

198,997

180,931

Others652,251645,890

Allowance for doubtful accounts(34,567)

7,265,322(34,567)

6,818,657

68,647,500

67,762,917

85,214,753

85,632,428

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

Tools, furniture and fixtures, net

Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable

Total investments and other assets
Total non-current assets
Total assets- 5 -(Thousands of yen)
FY3/16(As of March 31, 2016)

Second quarter of FY3/17(As of September 30, 2016)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,114,793

593,793

Short-term loans payable

4,379,428

4,272,289

Accounts payable

519,280

229,233

Income taxes payable

488,020663,265

Accrued expenses

269,075

86,271

Unearned revenue

948,317

1,890,551

Provision for bonuses

131,496

134,622

Provision for directors’ bonuses

25,88024,297

Provision for removal cost of property, plant and equipment

223,321

20,175

Others363,151

442,024

8,462,765

8,356,522

Long-term loans payable

19,621,404

19,708,937

Long-term guarantee deposited

5,083,361

5,253,306

Long-term accounts payable-other394,749

381,885

Net defined benefit liability

5,370

－

Provision for directors’ retirement benefits

2,436

348

25,107,322

25,344,477

33,570,088

33,701,000

Capital stock

6,826,100

6,826,100

Capital surplus6,982,920

6,983,986

Retained earnings

35,418,621

36,370,010

Treasury stock(1,562,688)
47,664,953(1,559,225)

Valuation difference on available-for-sale securities

2,234,058

1,812,122

Foreign currency translation adjustment(10,292)

2,223,766(398,173)

29,35955,022

Non-controlling interests

1,726,586

1,841,585

Total net assets

51,644,665

51,931,428

85,214,753

85,632,428

Total current liabilities
Non-current liabilities

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

Total shareholders’ equity

48,620,871

Accumulated other comprehensive income

Total accumulated other comprehensive income
Subscription rights to shares

Total liabilities and net assets- 6 -1,413,948

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of yen)First six months of FY3/16(April 1, 2015 – September 30, 2015)

First six months of FY3/17(April 1, 2016 – September 30, 2016)

Net sales

10,338,154

10,850,250

Cost of sales

7,902,977

7,926,697

Gross profit

2,435,176

2,923,552

Directors’ compensations

130,389

138,504

Salaries and bonuses

210,170

208,380

Provision for bonuses

83,98586,886

Provision for directors’ bonuses

25,88024,297

Transportation and communication expenses

47,097

55,103

Taxes and dues

46,05349,696

Selling, general, and administrative expenses

Depreciation

14,022

3,708

Others

310,626

309,366

868,225875,942

1,566,950

2,047,609

13

192

Dividends income

110,025

131,555

Commission fee

22,077

4,329－

106,542

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

Gain on reversal of provision for removal cost
Others75,22574,433

Total non-operating income

207,341

317,052

Interest expenses

149,257

179,636

Removal cost of property, plant and equipment

30,27020,550Foreign exchange losses

2,235

70,244

Depreciation

54,741－Non-operating expenses

OthersTotal non-operating expenses
Ordinary income

713

2,540

237,218

272,970

1,537,073

2,091,691

Extraordinary income
Gain on sales of non-current assets

6,707

－

Total extraordinary income

6,707

－

Loss on retirement of non-current assets

7,339

931

Loss on sales of non-current assets

12,609－Extraordinary loss

Total extraordinary loss

19,949931

Income before income taxes

1,523,831

2,090,760

Income taxes

531,112676,078

Profit992,718

1,414,682

Profit attributable to non-controlling interests

107,600

153,328

Profit attributable to owners of parent

885,118

1,261,354- 7 -(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of yen)First six months of FY3/16(April 1, 2015 – September 30, 2015)

First six months of FY3/17(April 1, 2016 – September 30, 2016)

992,718

1,414,682(230,543)(421,936)

760,164

604,864

ProfitOther comprehensive income
Valuation difference on available-for-sale securities(2,010)Foreign currency translation adjustment(232,554)

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to(387,881)(809,817)

Comprehensive income attributable to owners of parent

652,563451,536

Comprehensive income attributable to non-controlling interests

107,600

153,328- 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.

- 9 -