May 13, 2021

Financial Results for the Year Ended March 31, 2021 [J-GAAP]
Company Name:AIRPORT FACILITIES CO., LTD. (AFC)Stock Exchange Listed on:
Tokyo Stock Exchange (First Section)
Company Code:8864
URL: https://www.afc.jp
Representative: Masaaki Kai, President and CEO
Inquiries: Takahiro Hama, Corporate Officer, General Manager of Accounting Dept. TEL: +81-3-3747-0251
The Date of the Ordinary General Shareholders’ Meeting: June 29, 2021
The Date of the Dividend Payment Start:
June 30, 2021
The Date of Filing the Securities Report:
June 29, 2021
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 2021 (April 1, 2020 - March 31, 2021)(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%

24,15524,855

March 31, 2021
March 31, 2020

(2.8)
2.6

(Note) Comprehensive income:Millions of yen

Net income
per share

Millions of yen

Yen(Reference) Equity in earnings of affiliates:

(4.8)
13.8
(661) million yen(―)
1,290 million yen

Return on equity

―
44.56

(1.7)
4.1

%

Yen

Fiscal year ended March 31, 2021:
Fiscal year ended March 31, 2020:(2) Consolidated Financial Position
Total assets(Reference) Equity capital:

Fiscal year ended

2. Dividends

March 31, 2020
March 31, 2021――

March 31, 2022
(Forecasts)

―

Q2
Yen

Cash flows fromfinancing activities

Millions of yen(2,704)(8,217)

Q3
Yen

Q4
Yen

Cash and cash equivalents
at year end

Millions of yen(1,907)
1,958

AnnualYen

Yen

1,049.44
1,080.48

As of March 31, 2020: 53,854 million yen

Dividends per share

Q1

Net assets per share

52.1
51.5

Millions of yen

4,758
6,900

%

15.8
16.8

%

Cash flows frominvesting activities

Millions of yen

March 31, 2021
March 31, 2020%

54,96456,333

Cash flows fromoperating activities

―
5.8

3.5
3.6

Equity ratio

As of March 31, 2021: 52,378 million yen(3) Consolidated Cash Flows

%

(933)
2,227

Ordinary income toOperating margin
total assets

Millions of yen

100,429
104,483

As of March 31, 2021
As of March 31, 2020

Millions of yen((35.7%))－ million yen－ million yen

Net assets

Millions of yen

%

3,617
3,802

Diluted net income
per share(18.71)
44.72

March 31, 2021
March 31, 2020

Fiscal year ending

(8.4)
1.3

Fiscal year ended March 31, 2021:
Fiscal year ended March 31, 2020:

Fiscal year ended

Fiscal year ended

%

3,831
4,186

Yen

7.00
7.00

―
―

7.00
7.00

14.00
14.00

7.00

―

7.00

14.00

Total
dividends(annual)

6,583
6,518

Payout ratio(consolidated)

Millions of yen

%

697
698

31.2
―

Dividends to
net assets(consolidated)

%

1.3
1.3

43.4

3. Forecast of Consolidated Earnings for the Year Ending March 2022 (April 1, 2021 - March 31, 2022)(Percentages are changes from the same period of the previous year.)Net sales
Millions of yen

First half
Full fiscal year

12,23024,262

Operating income
%

0.4
0.4

Millions of yen

Ordinary income%

1,852 (17.6)
3,349 (12.5)

Millions of yen

- 1 -

%

1,607 (25.3)
2,633 (27.2)

Profit attributable toowners of parent
Millions of yen

1,011
1,610

%

4.0
―

Basic earnings
per share

Yen

20.25
32.25

＊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.: 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, 2021:
52,979,350 shares As of March 31, 2020:
52,979,350 shares(including treasury stock)2) Number of treasury stock
As of March 31, 2021:
3,068,347 shares As of March 31, 2020:
3,136,206 shares
3) Average number of shares during Year ended March 31,
Year ended March 31,
49,894,036shares
49,810,571 sharesthe period
2021:
2020:

(Reference) Summary of Non-consolidated Results
1. Non-consolidated Financial Results for the Year Ended March 2021 (April 1, 2020 - March 31, 2021)(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, 2021
March 31, 2020

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

20,812
21,605

(3.6)
3.1

2,455
3,019

(18.6)
2.0

2,510
3,045

(17.5)
17.2(1,228)
1,801

―
4.6

Net income
per share
Fiscal year ended

March 31, 2021
March 31, 2020

Diluted net income
per share
Yen

Yen(24.61)
36.17

―
36.03

(2) Non-consolidated Financial Position
Total assets
As of March 31, 2021
As of March 31, 2020

(Reference) Equity capital

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

89,38091,76349,87951,40455.7
55.9

997.581,029.43

As of March 31, 2021: 49,790 million yen

As of March 31, 2020: 51,310 million yen

2. Forecast of Non-consolidated Earnings for the Year Ending March 2022 (April 1, 2021 – March 31, 2022)(Percentages are changes from the same period of the previous year.)Net salesFirst half
Full fiscal year

Millions of yen

10,63821,211

Ordinary income
%

1.2
1.9

Millions of yen

1,369
2,022

Net income pershare

Net income%(14.9)(19.4)

Millions of yen

919
1,340

%

10.1
―

Yen

18.41
26.84

*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) Progress Status of the Medium-term Management Planand (5) Earnings forecast for the fiscal year ending March 2022”.

- 2 -1. Summary of Operating Results, etc.

(1) Summary of Operating Results for the Year Ended March 2021
During the year ended March 31, 2021, Japanese economy continued to experience severe situation due to a
global pandemic of COVID-19 which started February 2020. Although the second state of emergency issued for the
Tokyo metropolitan area in January 2021 was lifted in March 2021, the situation remains uncertain as anotherresurgence with a variant of the virus led to the third state of emergency issued for Tokyo and Kansai area in April
2021, which was later expanded to other areas and extended.
In an aviation industry, the domestic flights showed a sign of recovery at one point in summer partly due to aneffect of the government’s “Go-To Travel” campaign, but the demand is once again decreasing since January 2021
due to the resurgence of COVID-19. Demand for international flights is also expected to take a while before it seesa full recovery mainly due to the tightening of travel restrictions in response to the resurgence caused by variant
strains of COVID-19 in various countries.
Meanwhile, certain countries including the U.K. and the U.S., are making progress in vaccination rollouts, andJapan also began administering vaccine to elder citizens in April 2021, the second group after health care workers,
making steady progress toward the defeat of COVID-19.
Under such economic conditions, for the year ended March 31, 2021, the Group (the Company and its
consolidated subsidiaries) recorded net sales of ¥24,155 million (down 2.8%), operating income of ¥3,831 million(down 8.4%) and ordinary income of ¥3,617 million (down 4.8%) mainly due to a decrease in sales of Water Supply& Drainage Service because of a sharp decline in the number of airport users despite a full-year operation of new
facilities completed in the fiscal year ended March 31, 2020 in Real Estate Business.
Also during the year, we have forgiven rent receivables and heat charge receivables from customers in the aviationindustry as a consequence of the impact of the spread of COVID-19 and multiple states of emergency issued. In
addition, as the likelihood of prolonged COVID-19 pandemic forced the Company to carefully forecast the future
demand, we conducted detailed examination of costs and strategic reevaluation of assets with a conservative outlook
for medium- to long-term business. As a result, we recognized impairment loss on rental properties for hotel held in
Kyoto as extraordinary loss during the three months ended March 31, 2021, resulting in loss attributable to ownersof parent of ¥933 million for the year ended March 31, 2021 (¥2,227 million of profit attributable to owners of parent
for the year ended March 31, 2020).
Meanwhile, we started operation of our first dormitory for international students outside the airport in March
2021 as part of our initiatives for business diversification. In overseas, we opened an office in Singapore in April
2020 as a base for the Group’s overseas development and assigned two personnel to enhance the system of the local
subsidiary. Also, as an initiative toward realization of sustainable society, we introduced clean energy in Tokyo
International Airport by installing a solar self-consumption equipment in the domestic cargo terminal facility.
Leveraging our insights accumulated over the years, we will continue to take on challenges in the new fields inJapan and overseas as well as recognize and aggressively work on our social mission for environmental issues.
Specifically, we launched an environment business promotion project team in April 2021, with four working groups
to work on (1) establishment of CO₂ reduction target, (2) promotion of environment business (Eco-Airport), (3)promotion of biomass power generation, and (4) new businesses using new technologies.
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥18,940 million (up 1.1% from the previous fiscal year) due tofull-year operation of a new warehouse building of the Technical Center and an in-flight meal factory in ARC
Building at Toyo International Airport, and the new extended hanger at Kobe Airport completed after December
2019. Meanwhile, operating income was ¥2,922 million (down 5.3%) mainly due to an increase in repair
expenses, etc. related to energy-saving promotion and taxes and dues associated with a dormitory for international
students completed in March 2021.
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport Heating &Cooling Co., Ltd. recorded net sales of ¥3,379 million (up 3.2% from the previous fiscal year) due to apartial extension in the Tokyo International Airport Passenger Terminal No. 2 despite a decrease in demandmainly caused by the spread of COVID-19. Operating income was ¥1,097 million (up 29.3%) due todecreases in fuel costs for electricity and gas and repair expenses.

- 3 -(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥1,834 million (down 35.7% fromthe previous fiscal year) due to a continued significant decrease in water supply and drainage usage as a result of a
sharp decline in the number of airport users triggered by the spread of COVID-19, and recorded an operating lossof ¥188 million (operating income of ¥250 million in the previous fiscal year).
(2) Summary of Financial Position as of March 31, 2021
(Assets)
Total assets as of March 31, 2021 amounted to ¥100,429 million, a decrease by ¥4,054 million compared to March
31, 2020, partly due to impairment loss recognized on hotel in Kyoto despite completion of Kanazawa Hakkei
International Community Plaza which started operation as a dormitory for international students in March 2021.
(Liabilities)
Liabilities as of March 31, 2021 amounted to ¥45,464 million, a decrease by ¥2,686 million compared to March 31,
2020, mainly due to decreases in long-term loans payable and in accrued expenses because of payment of annual usage
fee of national property.
(Net assets)
Net assets as of March 31, 2021 decreased by ¥1,368 million compared to March 31, 2020 to ¥54,964 million mainly
due to loss attributable to owners of parent.
As a result, equity ratio as of March 31, 2021 increased by 0.6 points to 52.1% compared to March 31, 2020.
(3) Summary of Cash Flows for the Fiscal Year Ended March 31, 2021
Cash and cash equivalents (“cash”) as of March 31, 2021 amounted to ¥6,583 million, an increase of ¥64 million fromMarch 31, 2020.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥4,758 million (previous fiscal year: ¥6,900 million provided),mainly attributable to recording of noncash items including depreciation and impairment loss and collection ofoperating loans receivable despite cash outflows associated with acquisition of lease receivables and payment ofincome taxes.
(Cash flows from investing activities)
Net cash used in investing activities was ¥2,704 million (previous fiscal year: ¥8,217 million used), mainly
attributable to purchase of non-current assets associated with newly constructed Kanazawa Hakkei International
Community Plaza.
(Cash flows from financing activities)
Net cash used in financing activities was ¥1,907 million (previous fiscal year: ¥1,958 million provided), mainly
attributable to repayment of loans payable and payment of cash dividends.
(Reference) Cash Flow Indicators
FY2019/3

FY2020/3

FY2021/3

Equity ratio (%)

52.6

51.5

52.1

Equity ratio at market value (%)

28.8

20.3

30.9

Debt repayment period (years)

6.5

5.2

7.2

Interest coverage ratio (times)

12.8

16.5

13.0

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) Progress Status of the Medium-term Management Plan
Under the “Medium-term Management Plan for FY ending March 2020 to March 2022,” the Company considered a
global increase in passenger demand, enhancement of functions in Tokyo International Airport, and an increase in
inbound visitors as our growth opportunities and have been working to achieve the plan.
The first year results for the fiscal year ended March 31, 2020 were almost in line with the plan, but the second year
results for the fiscal year ended March 31, 2021 were, as described above, fell short of the initial forecast both in net
sales and profits mainly due to the impact of COVID-19 and recording of impairment loss.
For the fiscal year ending March 31 2022, the final year of the plan, as we expect that the business environment willcontinue to be severe, we will use the forecasts of consolidated earnings for the fiscal year ending March 31, 2022 as theplanned figures for the final year.
In the fiscal year ending March 31, 2022, we will make all-out efforts to improve earnings quickly and also develop
the next Medium-term Management Plan and a long-term vision toward further growth in the world after the COVID-19
pandemic.
(5) Earnings forecast for the fiscal year ending March 2022
While the impact of COVID-19 will remain in the year ending March 31, 2022, passenger demand is expected torecover to a certain degree as vaccinations progress, and accordingly, the forecast for the fiscal year ending March 31,
2022 is net sales of ¥24,262 million (up 0.4% from the previous fiscal year), operating income of ¥3,349 million (down
12.5%), ordinary income of ¥2,633 million (down 27.2%) and profit attributable to owners of parent of ¥1,610 million(¥933 million of loss attributable to owners of parent for the previous fiscal year).
(6) Basic Policy Regarding Distribution of Earnings and Dividends for the Year Ended March 31, 2021 and the YearEnding March 31, 2022
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 recognized impairment loss for the fiscal year ended March 31, 2021 as described above, it does nothave material impact on cash flows for the time being, and therefore, 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 ¥7and year-end dividend of ¥7) for the fiscal year ended March 31, 2021. We also plan to pay annual dividend of ¥14 pershare (including interim dividend of ¥7) as in the past for the fiscal year ending March 31, 2022.

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)
FY3/20(As of March 31, 2020)

FY3/21(As of March 31, 2021)

AssetsCurrent assets
Cash and deposits

6,518,663

6,583,181

Notes and accounts receivable-trade

1,267,240

1,373,918

Lease receivables and investment assets

7,286,793

10,502,602

Operating loans

4,918,584

3,586,074

11,09915,877

Others2,240,924

146,132

Total current assets

22,243,308

22,207,786

168,580,868

170,103,670(118,168,219)(123,525,954)

50,412,649

46,577,715

Raw materials and supplies

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles

19,704,050

20,381,139(13,338,264)(13,980,546)

6,365,786

6,400,593

Tools, furniture and fixtures

1,089,247

1,105,982

Accumulated depreciation(668,952)(795,346)

Tools, furniture and fixtures, net

420,294

310,636Land

14,902,098

13,985,705

Construction in progress

1,537,155

1,416,281

Total property, plant and equipment

73,637,983

68,690,931

Accumulated depreciation
Machinery, equipment and vehicles, net

Intangible assets
Software249,722202,364

Software in progress

335,029

463,525

Others

15,21919,813

Total intangible assets

599,972

685,7026,545,514

7,092,761

1,332

931

Deferred tax assets

700,505

906,445

Net defined benefit asset

149,523

228,866

Others616,108626,255

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

Investments and other assets
Investment securities
Long-term loans receivable

Total investments and other assets

8,002,716

8,844,993

Total non-current assets

82,240,672

78,221,628

104,483,980

100,429,415

Total assets- 6 -(Thousands of yen)
FY3/20(As of March 31, 2020)

FY3/21(As of March 31, 2021)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,117,627

Short-term loans payable

1,079,625

6,642,749

6,325,177

Accounts payable

935,285

1,131,097

Income taxes payable

567,586

156,069

Accrued expenses

788,460

102,802

Unearned revenue

1,117,907

1,100,926

Provision for bonuses

135,083

129,812

Provision for bonuses for directors (and otherofficers)

26,71528,355

Provision for removal cost of property, plant and equipment

226,392

78,011Others

330,139

386,666

11,887,946

10,518,542

Bonds payable

6,000,000

6,100,000

Long-term loans payable

23,402,486

22,287,170

Long-term guarantee deposited

6,286,570

6,163,216

Long-term accounts payable-otherTotal current liabilities
Non-current liabilities

326,067

260,254

Provision for retirement benefits for directors (andother officers)

2,436

－

Deferred tax liabilities

16,311

22,566

Provision for removal cost of property, plant and equipment

190,804

112,793

Others37,965－36,262,641

34,946,000

48,150,587

45,464,542

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,890

6,982,890

Retained earnings

40,315,327

38,680,850

Treasury stock(1,737,829)(1,700,228)

Total shareholders’ equity

52,386,487

50,789,611

Valuation difference on available-for-sale securities

1,682,442

2,054,158

Foreign currency translation adjustment(214,202)(464,980)

Total accumulated other comprehensive income

1,468,239

1,589,177

Subscription rights to shares

94,72289,284Non-controlling interests

2,383,942

2,496,798

Total net assets

56,333,393

54,964,872

104,483,980

100,429,415

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)
FY3/20(April 1, 2019 –March 31, 2020)
24,855,730
18,625,342
6,230,388(Thousands of yen)
FY3/21(April 1, 2020 –March 31, 2021)
24,155,122
18,441,101
5,714,020

313,513571,62184,670287,582595,963
83,347

26,71528,355

1,392

348

93,875
28,101
168,779
755,681

63,47927,740162,756
633,086

Total selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Commission fee
Gain on reversal of provision for removal cost of
property, plant and equipment
Others2,044,348
4,186,039

1,882,657
3,831,363

4,118
175,543
38,934

1
37,77022,142

8,821

73,21042,78473,498

Total non-operating income
Non-operating expenses
Interest expenses
Removal cost of property, plant and equipment
Provision for removal cost
Foreign exchange losses
Others270,201

206,623

416,094
114,489
93,95922,5907,071

358,723
50,512654,2033,802,037

420,148
3,617,837

15,653120,067
46,739－6,839

144,067－－
163,832
12,464

189,300

320,364

165,441
112,80937,199124,330

48,604
42,839－－1,370,438
3,118,888

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 non-operating expenses
Ordinary income
Extraordinary income
Insurance income
Penalty income
Nonrecurring income
Subsidy income
OthersTotal extraordinary income
Extraordinary loss
Loss on retirement of non-current assets
Loss on disaster
Nonrecurring loss
PCB treatment cost
Loss on response to new infectious disease
Impairment loss
Total extraordinary loss
Income (loss) before income taxes
Income taxes
Income taxes - deferred－－
439,781
3,551,556
1,009,830
130,318

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

1,140,148
2,411,408
183,447
2,227,960

- 8 -

－
1,401
9,511

4,580,769(642,567)
503,295(363,261)
140,033(782,601)
151,185(933,787)

(Consolidated Statements of Comprehensive Income)(Thousands of yen)
FY3/20(April 1, 2019 –March 31, 2020)

FY3/21(April 1, 2020 –March 31, 2021)

2,411,408(782,601)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income(1,135,313)

371,715

14,738(250,777)(1,120,575)

120,937

1,290,833(661,663)

1,107,385(812,849)

183,447

151,185

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, 2020 (April 1, 2019 to March 31, 2020)(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(1,784,131)

50,802,282

38,777,424

Changes of items during the period
Dividends from surplus(696,973)

Profit attributable to owners of parent

2,227,960(696,973)
2,227,960

Purchase of treasury stock
Disposal of treasury stock(116)

Retirement of treasury stock

7,032

(67)

(67)

46,36946,253
7,032

Net changes of items other than shareholders’ equity－

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

1,537,903

6,826,100

6,982,890

40,315,327

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

2,817,756

Foreigncurrencytranslation
adjustment(232,638)

Subscription
Totalrightsaccumulated
to shares
othercomprehensive
income2,585,117

113,808

46,301

1,584,205(1,737,829)

52,386,487

Noncontrollinginterests

2,238,823

Total
net assets

55,740,032

Changes of items during the period
Dividends from surplus－(696,973)

Profit attributable to owners of parent－

2,227,960

Purchase of treasury stock

－

(67)

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

46,253

3,697

3,697

10,730(1,135,313)

14,738(1,120,575)(19,085)

145,118(994,542)

Total changes of items during the period(1,135,313)

18,436(1,116,877)(19,085)

145,118

593,360

Balance at the end of current period

1,682,442(214,202)

1,468,239

94,722

2,383,942

56,333,393- 10 -

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)(698,279)

Profit (loss) attributable to owners of parent(933,787)(933,787)

Purchase of treasury stock
Disposal of treasury stock

(21)

(21)

(2,411)

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)

Profit (loss) attributable to owners of parent－(933,787)

Purchase of treasury stock

－

(21)

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

35,211－
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- 11 -

(4) Consolidated Statements of Cash Flows(Thousands of yen)
FY3/20(April 1, 2019 –March 31, 2020)

FY3/21(April 1, 2020 –March 31, 2021)

3,551,556(642,567)

Depreciation

4,011,770

4,263,726

Impairment loss－
112,809

3,118,888(270,639)(226,392)

54,421(79,342)

1,392(2,436)

3,989(5,271)

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

42,839(3,343)

1,640Interest and dividend income(179,661)(37,772)

Insurance income(15,653)(144,067)

PCB treatment cost

124,330－

Penalty income(120,067)

Subsidy income－(163,832)

Share-based compensation expenses－
27,084

Interest expenses

416,094358,723

Loss on retirement of non-current assets

165,441

48,604

Decrease (increase) in notes and accounts receivable(58,582)(107,032)

29,700Decrease (increase) in inventories
Net decrease (increase) in lease receivables andinvestment assets
Decrease (increase) in operating loans receivable

1,808(4,777)(655,685)(3,370,897)

798,124

1,016,029

Increase (decrease) in notes and accounts payable(74,767)(23,696)

Increase (decrease) in unearned revenue

72,703(16,066)

Increase (decrease) in accrued expenses

679,729(680,058)

Increase (decrease) in accrued consumption taxes

231,938

388,390

Decrease (increase) in other assets(314,216)

2,140,502

Increase (decrease) in other liabilities

18,487(160,173)

Subtotal

8,579,064

5,744,661

Interest and dividends received
Interest paid

179,661(417,940)

37,772(363,709)

Proceeds from insurance income

15,653144,067

Payments for loss on disaster(577,292)(57,141)

Proceeds from penalty income

120,067

Subsidies received－
163,832

Income taxes paid－
(999,141)(911,392)

Net cash provided by operating activities

6,900,072

4,758,089

Cash flows from investing activities
Purchase of non-current assets(7,702,822)(2,661,640)

Purchase of investment securities(514,862)(14,277)－400(29,010)(8,217,284)(2,704,528)

Payments of leasehold and guarantee deposits
Collection of long-term loans receivable
Net cash used in investing activities- 12 -

400

(Thousands of yen)
FY3/20(April 1, 2019 –March 31, 2020)

FY3/21(April 1, 2020 –March 31, 2021)

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

4,928,909

1,500,000

Decrease in short-term loans payable(4,303,517)(2,206,398)

Proceeds from long-term debt

6,600,000

4,431,960

Payments of long-term debt

(4,901,957)(4,873,607)

Proceeds from issuance of bonds－

100,000

Proceeds from guarantee deposits received

492,079

282,092

Repayments of guarantee deposits received(121,264)(405,447)

Proceeds from sales of treasury stock

83

73

Purchase of treasury stock

(67)

(21)

Payment of cash dividends(696,984)(698,069)

Cash dividends paid to non-controlling interests(38,329)(38,329)

Net cash provided by financing activities

1,958,950(1,907,747)

Effect of exchange rate change on cash and cash equivalents

33,738(81,296)

Net increase in cash and cash equivalents

675,476

64,518Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiary

5,824,573

6,518,663

18,614－

Cash and cash equivalents at end of period

6,518,663

6,583,181- 13 -

(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 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 2020 (April 1, 2019 – March 31, 2020)(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

18,727,273

3,274,631

2,853,826

24,855,730－

24,855,730

Inter-segment
net sales/transfers

245,360

850,803

243,833

1,339,997(1,339,997)－

18,972,633

4,125,434

3,097,659

26,195,728(1,339,997)

24,855,730

Segment income

3,086,262

849,011

250,765

4,186,039－

4,186,039

Segment assets

81,709,093

8,608,695

1,325,314

91,643,103

12,840,877

104,483,980

Segment liabilities

42,539,352

2,645,552

847,33146,032,237

2,118,350

48,150,587

3,219,079

548,791

215,798

3,983,669

28,101

4,011,770

5,122,727

1,629,772

24,993

6,777,494

376,214

7,153,708

Total

Other items
Depreciation andamortization
Increase in property, plantand equipment andintangible assets(Note) Adjustments represent elimination of intersegment transactions.

- 14 -

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

3,446,734

587,032

202,218

4,235,986

27,7404,263,726

1,768,708

468,943

195,677

2,433,328

136,5692,569,898

Total

Other items
Depreciation andamortization
Increase in property, plantand equipment andintangible assets(Notes) 1. Adjustments represent elimination of intersegment transactions.
2. Change in reportable segments, etc.
Effective April 1, 2020, we changed the allocation method for management resources of corporate assets and liabilities included in
the adjustments for segment assets and liabilities. Segment assets and liabilities in the segment information for the fiscal year ended
March 31, 2020 are presented under the new allocation method for management resources.

- 15 -