July 27, 2017

Financial Results for the First Quarter of the Year Ending March 31, 2018 [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:
August 2, 2017
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 First Quarter of the Fiscal Year Ending March 2018 (April 1, 2017 - June 30, 2017)(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 three months ended

Millions of yen

June 30, 2017
June 30, 2016

% Millions of yen

5,503
5,216

5.5
3.6

(Note) Comprehensive income:% Millions of yen

1,040
1,011

2.9
24.7

First three months ended June 30, 2017:
First three months ended June 30, 2016:

Basic earnings per
shareFirst three months ended

June 30, 2017
June 30, 2016

% Millions of yen

1,034
1,026

0.8
25.9

988 million yen
267 million yen

%

595
592

0.5
27.6

(269.3%)((50.1%))

Diluted earnings
per share

Yen

Yen

11.53
11.47

11.51
11.46

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of June 30, 2017
As of March 31, 201789,947
87,58054,00353,41557.8
58.7

1,006.52
995.53(Reference) Equity capital:

As of June 30, 2017: 52,005 million yen

As of March 31, 2017: 51,437 million yen

2. Dividends
Dividends per share

Q1

Q2

Q3

Q4

Annual

Yen

Yen

Yen

Yen

Yen

－
－

6.00

－

7.00

13.00

7.00

－

7.00

14.00

FY ended March 31, 2017
FY ending March 31, 2018
FY ending March 31, 2018 (Forecasts)(Note) Changes in the latest forecasts released: No

3. Forecast of Consolidated Earnings for the Year Ending March 2018 (April 1, 2017 - March 31, 2018)(Percentages are changes from the same period of the previous year.)

Operating income

Net salesFirst half
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

11,05022,180

1.8
2.3

2,050
3,860

0.1
0.9

2,090
3,640

0.0
4.2

1,360
2,310

7.8
7.3

26.32
44.71

(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) 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. : 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 June 30, 2017:
treasury stock)2) Number of treasury stock
As of June 30, 2017:
3) Average number of shares during
the period

First three months ended
June 30, 2017:

54,903,750 shares As of March 31, 2017:

54,903,750 shares

3,235,808 shares As of March 31, 2017:

3,235,711 shares

51,667,953 shares First three months ended
June 30, 2016:

51,660,776 shares* The quarterly review procedures are not applicable to this Financial Results report.
* 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 June 30, 2017 (3)Qualitative Information on Consolidated Earnings Forecast” on page 4.

- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended June 30, 2017
(1) Explanation about Business Results
During the quarter ended June 30, 2017, the Japanese economy saw strong export supported by stable global economy andalso showed signs of recovery in domestic consumption and capital investments while the Bank of Japan continued
monetary easing. Also, the announcement by major companies of their favorable results for the year ended March 31, 2017contributed to a recovery in the Nikkei Stock Average to the ¥20,000 level from late June for the first time in eighteenmonths, and the overall economy continued to show a moderate recovery trend. However, there are concerns over the
impacts on the Japanese economy of increasing global uncertainties about the policy management in the U.S., fluctuationsin interest rates and exchange rates, the future development of the Brexit negotiation in the U.K., the repeated terrorist
attacks and Middle East turmoil, and rising tensions over the situation in North Korea.
In the aviation industry, a demand for international flight and domestic flight increased from the same period of theprevious year due to a better configuration of Golden Week holidays in addition to an increasing inbound demand. On theother hand, as competition with Japanese and foreign LCCs having increased market presence and expanding Shinkansen
has become increasingly fierce, airline companies are working on strict cost management while implementing advanced
equipment, expanding network and enhancing in-flight services.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of ¥5,503
million (up 5.5% from the same period of the previous year) due to an improved occupancy ratio in tenants in Tokyo
International Airport, operating income of ¥1,040 million (up 2.9%), ordinary income of ¥1,034 million (up 0.8%), andprofit attributable to owners of parent of ¥595 million (up 0.5%).
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥4,102 million (up 5.2% from the same period of the previous year), due
to an improved occupancy ratio of tenants in Tokyo International Airport, addition of Haneda Asahi Cho Hotelwhich opened in September 2016, and increased sales of a consolidated subsidiary in Singapore. Operating income
was ¥745 million (up 9.7%).
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business recorded net sales of ¥747 million (up 0.1% from the same period of the previousyear) as the sales from Area Heating & Cooling Business in the offshore reclaimed area of Tokyo International
Airport by Tokyo Airport Heating & Cooling Co., Ltd., a consolidated subsidiary, remained the same level year-onyear. Operating income was ¥242 million (down 19.1%) due to repair expenses.
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥653 million (up 14.4% 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 commencement of water supply and drainage
business in New Chitose Airport. Operating income was ¥53 million (up 62.5%).

(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of June 30, 2017 amounted to ¥89,947 million, an increase by ¥2,367 million compared to March 31, 2017,
due to an increase in construction in progress resulting from the start of construction of solar power facilities in Heiwajima
and the renewal of boilers in Tokyo Airport Heating & Cooling Co., Ltd., and also due to recording of prepaid expenses forannual usage fee of national property.
(Liabilities)
Liabilities as of June 30, 2017 amounted to ¥35,944 million, an increase by ¥1,779 million from March 31, 2017, due torecording of accrued expenses for annual usage fee of each national property in Tokyo International Airport.

- 3 -(Net assets)
Net assets as of June 30, 2017 increased by ¥588 million compared to March 31, 2017 to ¥54,003 million mainly due to anincrease in retained earnings.
As a result, equity ratio as of June 30, 2017 decreased by 0.9 points to 57.8% compared to March 31, 2017.
(3) Qualitative Information on Consolidated Earnings Forecast
There is no change as to Consolidated Earnings Forecast for the Year Ending March 2018 which was announced in the
Financial Results for the Year Ended March 31, 2017 [J-GAAP] dated May 11, 2017.

- 4 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY3/17(As of March 31, 2017)

First quarter of FY3/18(As of June 30, 2017)

AssetsCurrent assets
Cash and deposits

3,713,841

5,420,890

Notes and accounts receivable-trade

1,105,796

1,452,580

Securities

2,000,000－

Lease receivables and investment assets

5,613,569

5,475,149

Operating loans

6,409,607

5,988,138

Raw materials and supplies

13,46915,109Deferred tax assets

137,464

137,464

Others222,372

2,620,754

19,216,120

21,110,087

Buildings and structures, net

45,781,042

45,234,363

Machinery, equipment and vehicles, net

4,807,542

4,676,874

54,200104,318

9,659,676

9,789,111

592,925

1,147,666

60,895,387

60,952,335

Software15,331

21,605

Others15,08015,080Total intangible assets

30,411

36,686

6,242,057

6,808,989

2,823

2,671

Deferred tax assets

407,807252,207

Net defined benefit asset

178,133

167,138

Others641,941

652,418

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

Total investments and other assets

7,438,196

7,848,859

68,363,995

68,837,880

87,580,116

89,947,967

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

Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable

Total non-current assets
Total assets- 5 -(Thousands of yen)
FY3/17(As of March 31, 2017)

First quarter of FY3/18(As of June 30, 2017)

Liabilities
Current liabilities
Notes and accounts payable-trade952,151

675,309

4,491,774

4,524,029

Accounts payable

630,096

333,683

Income taxes payable

753,798391,268

Accrued expenses

82,9893,645,621

Unearned revenue

943,936

1,000,155

Provision for bonuses

128,380

64,266

Provision for directors’ bonuses

24,297

13,990

Provision for removal cost of property, plant and equipment

28,91328,276

Others519,819555,228

8,556,157

11,231,828

Long-term loans payable

19,502,373

18,599,909

Long-term guarantee deposited

5,402,001

5,400,937

Long-term accounts payable-other345,169

352,198

Short-term loans payable

Total current liabilities
Non-current liabilities

Provision for directors’ retirement benefits

1,044

1,392

358,325

358,325

25,608,913

24,712,762

34,165,070

35,944,591

Capital stock

6,826,100

6,826,100

Capital surplus

6,983,993

6,983,993

Retained earnings

36,949,740

37,183,987

Treasury stock(1,559,198)(1,559,253)

Total shareholders’ equity

49,200,635

49,434,827

Valuation difference on available-for-sale securities

2,418,429

2,770,995

Foreign currency translation adjustment(181,790)(200,795)

Total accumulated other comprehensive income

2,236,639

2,570,199

55,02255,022

Non-controlling interests

1,922,748

1,943,327

Total net assets

53,415,045

54,003,376

87,580,116

89,947,967

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

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 three months of FY3/17(April 1, 2016 – June 30, 2016)

First three months of FY3/18(April 1, 2017 – June 30, 2017)

5,216,170

5,503,895

Net sales
Cost of sales

3,779,624

4,030,359

Gross profit

1,436,545

1,473,535

Selling, general, and administrative expenses
Directors’ compensations

68,877

68,127

Salaries and bonuses

106,202102,399

Provision for bonuses

43,04439,324

Provision for directors’ bonuses

12,14813,990Transportation and communication expenses

28,07026,842

Taxes and dues

27,30545,150Depreciation

1,738

3,021

Others138,052

133,844

Total selling, general, and administrative expenses

425,439432,699

1,011,106

1,040,835

Dividends income

113,134

127,901

Commission fee

25,20327,005

Operating income
Non-operating income

Others36,89934,759Total non-operating income

175,237

189,666

84,32287,789Removal cost of property, plant and equipment

5,070

26,649Foreign exchange losses

70,48480,172

195

1,345

Non-operating expenses
Interest expenses

OthersTotal non-operating expenses
Ordinary income

160,072

195,956

1,026,272

1,034,545

931

39

Extraordinary loss
Loss on retirement of non-current assets
Total extraordinary loss

931

39

Income before income taxes

1,025,341

1,034,505

Income taxes

359,417379,674

Profit

665,923

654,831

Profit attributable to non-controlling interests

73,49358,907

Profit attributable to owners of parent

592,429595,923- 7 -(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of yen)First three months of FY3/17(April 1, 2016 – June 30, 2016)

First three months of FY3/18(April 1, 2017 – June 30, 2017)

665,923

654,831

ProfitOther comprehensive income
Valuation difference on available-for-sale securities(354,636)

352,565

Foreign currency translation adjustment(43,681)(19,005)

Total other comprehensive income(398,317)

333,560

267,605

988,391

Comprehensive income attributable to owners of parent

194,112929,483

Comprehensive income attributable to non-controlling interests

73,49358,907

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.
(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 June 30, 2017.

3. Others
Material Events concerning Going Concern
Not applicable.

- 9 -