January 31, 2019

Financial Results for the Third Quarter of the Year Ending March 31, 2019 [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, Corporate Officer, General Manager of Accounting Dept. TEL: +81-3-3747-0251
The date of filing the quarterly securities report:
February 1, 2019
The date of the dividend payment start:－
Preparation of quarterly earnings presentation material:
No
Holding of quarterly earnings announcement:
No(Figures are rounded off to the nearest million yen.)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 2019 (April 1, 2018 - December 31, 2018)(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, 2018
December 31, 201718,137
16,992% Millions of yen

6.7
5.0

(Note) Comprehensive income:First nine months ended% Millions of yen

3,304
3,215

2.7
3.3

% Millions of yen

2,824
2,967

(4.8)
(0.0)

First nine months ended December 31, 2018:
First nine months ended December 31, 2017:

Basic earnings per
share

1,616 million yen
2,872 million yen

2.8
(4.7)
((43.7%))(77.4%)

Diluted earnings
per share

Yen

December 31, 2018
December 31, 2017

%

1,818
1,767

Yen

36.53
34.21

36.38
34.11

(2) Consolidated Financial Position
Total assets
As of December 31, 2018
As of March 31, 2018

(Reference) Equity capital:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

100,841
87,961

55,34854,482

52.5
59.4

1,065.40
1,050.69

As of December 31, 2018: 53,014 million yen

2. Dividends

As of March 31, 2018: 52,277 million yen

Dividends per share

Q1

Q2

Q3

Q4

Annual

Yen

Yen

Yen

Yen

Yen

－
－

7.00
7.00

－
－

7.00

14.00

7.00

14.00

FY ended March 31, 2018
FY ending March 31, 2019
FY ending March 31, 2019 (Forecasts)(Note) Changes in the latest forecasts released: No

3. Forecast of Consolidated Earnings for the Year Ending March 2019 (April 1, 2018 - March 31, 2019)(Percentages are changes from the same period of the previous year.)

Operating income

Net sales
Full fiscal year

Profit attributable toowners of parent

Ordinary income

Basic earnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

23,690

3.9

4,180

1.9

3,850

3.3

2,290

3.2

46.03

(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. : Yes
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, 2018:
treasury stock)2) Number of treasury stock
As of December 31, 2018:
3) Average number of shares during
the period

First nine months ended
December 31, 2018:

52,979,350 shares As of March 31, 2018:

52,979,350 shares

3,219,682 shares As of March 31, 2018:

3,223,911 shares

49,758,278 shares First nine months ended
December 31, 2017:

51,675,978 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, 2018 (3)Qualitative Information on Consolidated Earnings Forecast” on page 4.

- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended December 31, 2018
(1) Explanation about Business Results

During the nine months ended December 31, 2018, the Japanese economy showed a moderate recovery trend overall due toa steady growth of domestic capital investments and production. However, uncertainty about the U.S. economy and its
monetary policy spread toward the end of the year caused a disturbance in the financial market, which also triggered lower
stock prices and yen’s appreciation in Japan. In addition, there are concerns over the impact on the Japanese economy of
the uncertain outlook of trade negotiation between the U.S. and China and the forecast of economic slowdown in European
countries and China.
In the aviation industry, strong demands of domestic and international passengers continued despite a temporary decline
due to typhoon and earthquake in September. In particular, demands of international flights continued to be strong with thenumber of foreign passengers visiting Japan over the year exceeding 31 million.
As efforts to enhance functions of airports in the Tokyo Metropolitan area are being made toward achievement of thegovernment target of the number of foreign passengers visiting Japan of 40 million by 2020, leading domestic and foreign
airline companies as well as LCCs are expected to increase their flights. On the other hand, with concerns over pilot
shortage, wild swing in crude oil prices and fluctuations in exchange rates, domestic airline companies are continuing towork on enhancing cost competitiveness while implementing advanced equipment, expanding network and strengthening
LCC business.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of¥18,137 million (up 6.7% from the same period of the previous year) due to an improved occupancy ratio of our tenants inTokyo International Airport, full-year operation of aviation related facilities in local airports and the start of leasing of thehotel in Kyoto acquired at the end of June. Operating income was ¥3,304 million (up 2.7%) despite an increase in realestate acquisition tax and depreciation expense associated with the acquisition of the hotel in Kyoto.
Ordinary income was ¥2,824 million (down 4.8%) as a result of recording provision for removal cost for ARC Building
in relation to extension or reconstruction of a new in-flight meal factory that was commenced in late January 2019 in Tokyo
International Airport although a subsidiary in Singapore recorded foreign exchange gains. Profit attributable to owners ofparent was ¥1,818 million (up 2.8%).
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥13,540 million (up 7.0% from the same period of the previous year), due
to an improved occupancy ratio of our tenants in Tokyo International Airport, full-year operation of aviation related
facilities in local airports, the start of leasing of the hotel acquired in Kyoto and consolidation of a Canadiansubsidiary. Operating income was ¥2,392 million (up 9.2%).
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business recorded net sales of ¥2,429 million (up 1.6% from the same period of theprevious year) as Tokyo Airport Heating & Cooling Co., Ltd., a consolidated subsidiary, showed a steady growth inarea heating and cooling services in the reclaimed land area offshore Tokyo International Airport due to extremely
hot summer. However, operating income was ¥683 million (down 23.1%) due to an increase in fuel costs forelectricity and gas.
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥2,167 million (up 10.7% 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 anincrease in water supply to various constructions at Tokyo International Airport, and smooth full-year operation of- 3 -the solar power facility that started electric power selling in Heiwajima, Ota-ku. Operating income was ¥228 million(up 66.9%).
(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of December 31, 2018 amounted to ¥100,841 million, an increase by ¥12,879 million compared to March
31, 2018, mainly due to the acquisition of the hotel in Kyoto.
(Liabilities)
Liabilities as of December 31, 2018 amounted to ¥45,493 million, an increase by ¥12,013 million from March 31, 2018,
mainly due to bond issuance associated with acquisition of the hotel in Kyoto and an increase in long-term loans payable.
(Net assets)
Net assets as of December 31, 2018 increased by ¥865 million compared to March 31, 2018 to ¥55,348 million mainly due
to an increase in retained earnings.
As a result, equity ratio as of December 31, 2018 decreased by 6.9 points to 52.5% compared to March 31, 2018.
(3) Qualitative Information on Consolidated Earnings Forecast
There is no change as to Consolidated Earnings Forecast for the Year Ending March 2019 which was announced in the
Financial Results for the Year Ended March 31, 2018 [J-GAAP] dated May 10, 2018.

- 4 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY3/18(As of March 31, 2018)

Third quarter of FY3/19(As of December 31, 2018)

AssetsCurrent assets
Cash and deposits

4,608,382

7,150,059

Notes and accounts receivable-trade

1,210,390

1,180,385

Lease receivables and investment assets

5,991,149

6,838,536

Operating loans

5,422,908

6,158,657

Raw materials and supplies

14,676

12,569Others284,004

1,726,470

17,531,512

23,066,679

Buildings and structures, net

44,534,344

48,116,330

Machinery, equipment and vehicles, net

5,384,270

5,531,459

156,341

629,525Land

10,307,875

14,596,026

Construction in progress

1,422,667

902,484

Total property, plant and equipment

61,805,499

69,775,825

Software34,851

28,221Others

15,055

14,943

Total intangible assets

49,907

43,164

7,483,456

6,770,953

2,217

1,832

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
Deferred tax assets

259,037

379,679

Net defined benefit asset

218,585

189,497

Others646,334

648,352

Allowance for doubtful accounts(34,567)(34,567)

Total investments and other assets

8,575,064

7,955,748

70,430,471

77,774,738

87,961,984

100,841,418

Total non-current assets
Total assets- 5 -(Thousands of yen)
FY3/18(As of March 31, 2018)

Third quarter of FY3/19(As of December 31, 2018)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,023,054

644,190

Short-term loans payable

5,879,559

5,864,273

Accounts payable

674,381

153,365

Income taxes payable651,257

382,758

Accrued expenses

93,808380,336

Unearned revenue

977,315

1,593,387

Provision for bonuses

128,398

63,402

Provision for directors’ bonuses

27,98015,029Provision for removal cost of property, plant and equipment

173,200

370,771

Others421,549

441,187

10,050,504

9,908,702－

6,000,000

Long-term loans payable

17,279,899

23,035,355

Long-term guarantee deposited

5,638,318

5,935,240

Long-term accounts payable-other311,526

334,942

6,846

696

192,311278,237

23,428,901

35,584,471

33,479,405

45,493,174

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,890

6,982,851

Retained earnings

37,381,745

38,491,492

Treasury stock(1,786,417)(1,784,079)

Total shareholders’ equity

49,404,317

50,516,364

2,853,576

2,589,410

19,613(91,565)

2,873,189

2,497,844

79,896

113,808

Non-controlling interests

2,125,175

2,220,226

Total net assets

54,482,578

55,348,244

87,961,984

100,841,418

Total current liabilities
Non-current liabilities
Bonds payable

Provision for directors’ retirement benefits
Provision for removal cost of property, plant and equipment
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares

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 FY3/18(April 1, 2017 – December 31, 2017)

First nine months of FY3/19(April 1, 2018 – December 31, 2018)

Net sales

16,992,394

18,137,005

Cost of sales

12,396,304

13,332,244

Gross profit

4,596,089

4,804,760

Selling, general, and administrative expenses
Directors’ compensations

237,561

252,679

Salaries and bonuses

387,765

417,473

Provision for bonuses

34,854

39,150

Provision for directors’ bonuses

13,99015,029Transportation and communication expenses

83,47980,608

Taxes and dues

114,247

132,400

Depreciation

10,024

21,321Others499,065

541,396

1,380,987

1,500,058

3,215,102

3,304,701

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

00Dividends income

162,625

171,384

Commission fee

49,36913,844－53,905

Foreign exchange gains
Others50,641

60,521

Total non-operating income

262,637

299,656

Interest expenses

257,430

312,119

Removal cost of property, plant and equipment

88,606

31,050Non-operating expenses

Provision for removal cost
Foreign exchange losses
Bond issuance cost
OthersTotal non-operating expenses－

316,524

146,629－－

119,788

17,637－510,302779,4812,967,437

2,824,876

Insurance income

－

5,703

Total extraordinary income

－

5,703

366

4,289

Ordinary income
Extraordinary income

Extraordinary loss
Loss on retirement of non-current assets
Loss on disaster

－

3,581

Total extraordinary loss

366

7,870

Income before income taxes

2,967,070

2,822,708

979,412871,241

1,987,657

1,951,467

220,022

133,380

1,767,634

1,818,087

Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 7 -(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of yen)First nine months of FY3/18(April 1, 2017 – December 31, 2017)

First nine months of FY3/19(April 1, 2018 – December 31, 2018)

1,987,657

1,951,467

Valuation difference on available-for-sale securities

758,772(264,166)

Foreign currency translation adjustment

126,077(70,574)

Total other comprehensive income

884,850(334,740)

2,872,508

1,616,727

Comprehensive income attributable to owners of parent

2,652,485

1,483,346

Comprehensive income attributable to non-controlling interests

220,022

133,380

ProfitOther comprehensive income

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)(Application of Practical Solution on Transactions Granting Employees and Others Stock Acquisition Rights, which
Involve Considerations, with Vesting Conditions)“Practical Solution on Transactions Granting Employees and Others Stock Acquisition Rights, which Involve
Considerations, with Vesting Conditions” (Practical Issues Task Force No.36, January 12, 2018; hereinafter, “PITF
No.36”), etc. has become available for application from the date of its publication. Accordingly, the Group has adopted
PITF No.36 on or after the date of publication and decided to apply accounting methods conforming to the AccountingStandards for Stock Options (Corporate Accounting Standards No. 8, December 27, 2005) for transactions granting
employees and others stock acquisition rights, which involve considerations, with vesting conditions.
In applying PITF No.36, the Group followed the transitional treatments provided in Paragraph 10 (3) of PITF No.36.
Accordingly, transactions in which stock acquisition rights, which involve considerations, with vesting conditions, were
granted to employees and others prior to the date of application of PITF No.36 have continued to be accounted for using thepreviously adopted accounting treatment.
(Application of Specific Accounting Treatments in Preparing the Quarterly Consolidated Financial Statements)
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, 2018.
(Additional information)(Application of the Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.)
Effective April 1, 2018, the Group applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting,etc.” (Accounting Standards Board of Japan (“ASBJ”) Statement No.28, February 16, 2018), and accordingly, deferred tax
assets are presented in investments and other assets.

- 9 -