October 31, 2013

Financial Results for the Second Quarter of the Year Ending March 31, 2014 [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-group.jp
Representative: Tomoyuki Takahashi, President and CEO
Inquiries: Kazuhiko Muraishi, Director, Senior Corporate Officer, General Manager of Accounting Dept.
The date of filing the quarterly securities report:
November 8, 2013
The date of the dividend payment start:
November 25,2013
Preparation of quarterly earnings presentation material:
Yes
Holding of quarterly earnings announcement:
Yes (for analysts)

TEL: +81-3-3747-0251(Figures are rounded off to the nearest million yen.)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 2014 (April 1, 2013 - September 30, 2013)(1) Consolidated Business Results(Percentages are changes from the same period of the previous year.)Net sales
Operating income
Ordinary income
Net income
First six months ended

Millions of yen

September 30, 2013
September 30, 2012

10,528
10,600% Millions of yen(0.7)
3.4(Note) Comprehensive income:% Millions of yen

1,893
1,856

2.0
15.8

% Millions of yen

1,854
2,019

(8.2)
24.5

First six months ended September 30, 2013: 1,522 million yen
First six months ended September 30, 2012:
951 million yen

Net income
per share%

1,064
1,181(10.0)
46.7(60.1%)(5.6%)

Diluted net income
per shareFirst six months endedYen

Yen

September 30, 2013
September 30, 2012

20.59
22.87

－－Total assets

Net assets(2) Consolidated Financial Position

As of September 30, 2013
As of March 31, 2013
(Reference) Equity capital:

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

74,43673,317

48,20047,02662.8
62.2

905.49882.80

As of September 30, 2013: 46,780 million yen

As of March 31, 2013: 45,607 million yen

2. Dividends
Dividends per share

Q1
FY ended March 31, 2013
FY ending March 31, 2014
FY ending March 31, 2014（Forecasts）

Q2

Q3

Yen

Yen－－

6.00
6.00

Q4

Annual

Yen

Yen

Yen－

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 2014 (April 1, 2013 - March 31, 2014)(Percentages are changes from the same period of the previous year.)Net sales
Full fiscal year

Operating income

Ordinary income

Net income
per share

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

21,170

0.5

3,380

0.5

3,130(10.3)

1,730

(2.9)

33.49

(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 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, 2013:treasury stock)2) Number of treasury stock
As of September 30, 2013:
3) Average number of shares during
the period

First six months ended
September 30, 2013:

54,903,750 shares As of March 31, 2013:

54,903,750 shares

3,241,798 shares As of March 31, 2013:

3,241,454 shares

51,662,107 shares First six months ended
September 30, 2012:

51,662,491shares* 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,
and the 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, 2013”(3) Qualitative Information on Consolidated Earnings Forecast on page 4.

- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended September 30, 2013
(1) Explanation about Business Results
During the six months ended September 30, 2013, the Japanese economy’s recovery has been becoming reality due torecovery of exports and continued increases in private consumptions and capital investments while various policies
including monetary easing and weakening yen started to take effects. On the other hand, increases in import prices anddownturn in overseas economies continued to constitute risks to depress the Japanese economy.
In the aviation industry, number of domestic passengers continued to increase steadily and the actual demands ofdomestic passengers during the summer high seasons exceeded the previous year’s result for many airline companies.
While major airline companies increase their supplies, domestic LCCs have been increasing the number of destinations andflights at a rapid pace since they started operation last year, making competitions among airline companies more
intensifying. Although the favorable recovery of the economic conditions is expected to support continuous solid demands,
cost burdens such as weakening yen and fuel cost hovering at a high level are having adverse effects on revenues; andaccordingly, airline companies continue to implement management improvement efforts including cost reduction.
Tokyo International Airport, our business location, has been undergoing the functional enhancement including theexpansion of terminals in response to an increase of the international flight capacity for arrivals and departures scheduled innext spring. In addition, as the further increase of the flight capacity is expected to be discussed as a result of the decision
to host 2020 Olympic/Paralympic Games in Tokyo, we consider this as an opportunity for our business expansion andintend to collaborate closely with relevant parties.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of¥10,528 million (down 0.7% from the same period of the previous year), operating income of ¥1,893 million (up 2.0%) andordinary income of ¥1,854 million (down 8.2%) due to a decrease in dividend from subsidiary, and net income of ¥1,064
million (down 10.0%).
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥7,389 million, an increase by ¥286 million (4.0%) from the same periodof the previous year, due to rent income from new large tenant at Tokyo International Airport starting in the previous
period and full-year operation of Kitakyushu Airport Training Center despite the impact of cost reduction by major
airline companies. Operating income also increased by ¥94 million (7.5%) to ¥1,354 million as a result of a decreasein depreciation expense of the existing facilities.
(ii) District Heating & Cooling BusinessDistrict Heating & Cooling Business recorded net sales of ¥1,954 million, a decrease by ¥280 million (12.5%) fromthe same period of the previous year, due to a decrease in clients in the 1-chome District of Tokyo International
Airport. Operating income also decreased by ¥132 million (28.0%) to ¥340 million due to increased price ofelectricity and gas.
(iii) Waterworks & Drainage Management and Other BusinessNet sales in Waterworks & Drainage Management and Other Business decreased by ¥78 million (6.2%) from thesame period of the previous year to ¥1,185 million due to change of the contract form of the waterworks & drainage
management business at Osaka International Airport. Operating income, however, increased by ¥76 million (61.3%)
to ¥199 million due to a significant decrease in outsourcing expense for maintenance and management service and adecrease in land rent.
(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of September 30, 2013 amounted to ¥74,436 million, an increase by ¥1,120 million compared to March 31,
2013, due to increases in construction-in-progress from payments for construction of a facility to provide in-flight services
and apartments for single airport employees, and an increase in unrealized gains on investment securities from rising stock
price.
(Liabilities)- 3 -There were no major movements in liabilities and the ending balance as of September 30, 2013 amounted to ¥26,236
million, a decrease by ¥54 million from March 31, 2013, as an increase in long-term loans payable was slightly surpassedby contract repayments.
(Net assets)
Net assets as of September 30, 2013 increased by ¥1,174 million compared to March 31, 2013 to ¥48,200 million mainly
due to an increase in retained earnings from recording net income for the period and an increase in valuation difference on
available-for-sale securities.
As a result, equity ratio increased by 0.6 points to 62.8% compared to March 31, 2013.
(3) Qualitative Information on Consolidated Earnings Forecast
There is no change as to Consolidated Earnings Forecast for the Year Ending March 2014 which was announced in theFinancial Results for the Year Ended March 31, 2013 [J-GAAP] dated May 14, 2013.

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 taxes and minority interests for the period multiplied by the estimatedeffective tax rate. The effective tax rate is reasonably estimated taking into consideration deferred tax accounting as the rateapplicable to income before income taxes and minority interests for the consolidated fiscal year including the period ended
September 30, 2013.
(3) Changes in Accounting Policies and Estimates, and Restatements
Not applicable.

3. Material Events concerning Going Concern
Not applicable.

- 4 -3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY3/13(As of March 31, 2013)

Second quarter of FY3/14(As of September 30, 2013)

AssetsCurrent assets
Cash and deposits

1,937,693

2,002,153

Notes and accounts receivable-trade

1,104,213

1,079,418

Lease investment assets

1,941,007

1,927,590

Raw materials and supplies

46,17539,488Deferred tax assets

220,842

220,842

Short-term loans receivable

799,712－Others

456,394

2,254,284

6,506,036

7,523,775

Buildings and structures, net

47,731,536

46,512,277

Machinery, equipment and vehicles, net

3,125,742

3,451,16137,284

36,005

Land

8,627,706

8,664,706

Construction in progress

1,502,063

2,060,906

Total property, plant and equipment

61,024,331

60,725,055

96,11479,0463,490,582

4,141,546

6,266

5,642

1,801,151

1,569,148

Others422,885422,779

Allowance for doubtful accounts(30,600)(30,600)

Total investments and other assets

5,690,284

6,108,515

66,810,729

66,912,616

73,316,765

74,436,391

Total current assets
Noncurrent 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

Total noncurrent assets
Total assets- 5 -(Thousands of yen)
FY3/13(As of March 31, 2013)

Second quarter of FY3/14(As of September 30, 2013)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,257,057

657,456

Short-term loans payable

4,247,722

3,942,092

Accounts payable

715,383

209,301

Income taxes payable

478,046

732,075

Accrued expenses

153,850

57,993

Unearned revenue

813,465

1,785,993

Provision for bonuses

120,200

131,441

Provision for directors’ bonuses

21,03827,600

Provision for removal cost of property, plant and equipment

258,964

261,015

Others968,940

1,200,248

9,034,665

9,005,214

Long-term loans payable

11,645,140

11,840,894

Long-term guarantee deposited

5,012,653

4,807,519

Long-term accounts payable-facilities

308,118

308,118

Provision for retirement benefits

73,676

94,643

Provision for directors’ retirement benefits

216,364

180,007

17,255,951

17,231,181

26,290,616

26,236,395

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,921

6,982,921

Retained earnings

32,746,818

33,500,379

Treasury stock(1,561,637)(1,561,872)

Total shareholders’ equity

44,994,202

45,747,528

613,054

1,032,014

Total current liabilities
Noncurrent liabilities

Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

613,054

1,032,014

Minority interests

1,418,893

1,420,454

Total net assets

47,026,149

48,199,996

73,316,765

74,436,391

Total accumulated other comprehensive income

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 six months of FY3/13(April 1, 2012 – September 30, 2012)

First six months of FY3/14(April 1, 2013 – September 30, 2013)

Net sales

10,600,070

10,527,549

Cost of sales

7,976,595

7,872,271

Gross profit

2,623,475

2,655,278

Selling, general, and administrative expenses
Directors’ compensations

110,724

126,924

Salaries and bonuses

214,924

197,453

Provision for bonuses

74,90571,448Provision for directors’ bonuses

21,03827,600Transportation and communication expenses

41,12844,985

Taxes and dues

40,42741,456

Depreciation

17,635

16,312Others247,095

236,362

Total selling, general, and administrative expenses

767,876762,540

1,855,599

1,892,738

215

19

Dividends income

350,285

86,813

Commission fee

7,354

2,436

Gain on investments in silent partnership

13,794

15,378Others37,29837,808

Total non-operating income

408,946

142,454

Interest expenses

146,826

123,620

Loss on retirement of noncurrent assets

98,64554,704454

3,254

Operating income
Non-operating income
Interest income

Non-operating expenses

OthersTotal non-operating expenses
Ordinary income

245,925

181,578

2,018,620

1,853,614

40,11825,047Extraordinary loss
Removal cost of property, plant and equipment
Directors’ retirement benefits

495-

Total extraordinary loss

40,61325,047

Income before income taxes

1,978,007

1,828,567

734,706

725,144

1,243,301

1,103,423

Income taxes
Income before minority interests
Minority interests in income
Net income- 7 -61,865

39,8901,181,436

1,063,533

(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of yen)First six months of FY3/13(April 1, 2012 – September 30, 2012)

First six months of FY3/14(April 1, 2013 – September 30, 2013)

1,243,301

1,103,423

Valuation difference on available-for-sale securities(292,416)

418,961

Total other comprehensive income(292,416)

418,961

950,885

1,522,384

Comprehensive income attributable to owners of the parent

889,020

1,482,494Comprehensive income attributable to minority interests

61,86539,890

Income before minority interests
Other 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.
(Significant Subsequent Events)
Establishment of an overseas affiliate
The Company resolved at the board of directors’ meeting held on October 31, 2013 to establish a local affiliate inSingapore and open a local office.

・Purpose of the establishment
To construct and acquire aviation-related facilities in overseas and provide those facilities to aviation-related companies
The company name, time of establishment, business description, amount of capital, and ownership ratio are to be determined.

- 9 -