January 28, 2021

Financial Results for the Third Quarter of the Year Ending March 31, 2021 [J-GAAP](Consolidated)
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 Filing the Quarterly Securities Report:
February 1, 2021
The Date of the Dividend Payment Start:
Preparation of Quarterly Earnings Presentation Material:NoHolding 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 2021 (April 1, 2020 - December 31, 2020)(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 nine months ended

Millions of yen% Millions of yen

18,136
18,619December 31, 2020
December 31, 2019

(2.5)
2.6(Note) Comprehensive income:First nine months ended% Millions of yen

3,368
3,647(7.6)
10.3% Millions of yen

3,233
3,547(8.8)
25.5First nine months ended December 31, 2020:
First nine months ended December 31, 2019:

Basic earnings pershare

1,800 million yen
2,317 million yen(27.7)
21.3((22.2 %))(43.3 %)

Diluted earnings
per share

Yen

Yen

31.94
44.30

December 31, 2020
December 31, 2019

%

1,593
2,206

31.82
44.14

(2) Consolidated Financial Position
Total assets
As of December 31, 2020
As of March 31, 2020

(Reference) Equity capital:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

108,091
104,483

57,42756,33350.7
51.5

1,098.20
1,080.48

As of December 31, 2020: 54,812 million yen

2. Dividends

As of March 31, 2020: 53,854 million yen
Dividends per share

Q1
FY ended March 31, 2020
FY ending March 31, 2021
FY ending March 31, 2021 (Forecasts)

Q2

Q3

Q4

Annual

Yen

Yen

Yen

Yen

Yen－－

7.00
7.00

－－

7.00

14.00

7.00

14.00

(Note) Changes in the latest forecasts released: No

3. Forecast of Consolidated Earnings for the Year Ending March 2021 (April 1, 2020 - March 31, 2021)(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

25,6903.3

3,960(5.3)

3,210(15.5)

1,310(41.1)

26.28(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: YesNote: 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.: 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
As of December 31, 2020:(including treasury stock)2) Number of treasury stock
As of December 31, 2020:
3) Average number of shares during
the period

First nine months ended
December 31, 2020:

52,979,350 shares As of March 31, 2020:

52,979,350 shares

3,068,326 shares As of March 31, 2020:

3,136,206 shares

49,888,381 shares First nine months ended
December 31, 2019:49,799,714 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

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 page 4 “1. Qualitative Information on Consolidated Financial Results for the Quarter Ended December 31,
2020 (3) Qualitative Information on Consolidated Earnings Forecast”.

- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended December 31, 2020
(1) Explanation about Business Results

During the nine months ended December 31, 2020, the Japanese economy continued to experience an unprecedented
economic downturn due to a global pandemic of COVID-19 which originally started early 2020. The situation remains
uncertain as the number of new infection cases soared mainly in the Tokyo metropolitan area after November, followed by
the second state of emergency issued for Tokyo and three neighboring prefectures in early January 2021 as well as forseveral other prefectures eventually.
In the aviation industry, the domestic flights showed a sign of recovery at one point partly due to an effect of thegovernment’s “Go To Travel” campaign but are now subjected to the influence of the resurgence of COVID-19. Theinternational flights have continued to face a severe situation, and it is expected to take a while before they fully recover as
the new COVID-19 variants have been spreading mainly in Europe and the U.S. causing various countries to tighten theirtravel restrictions. Meanwhile, the movements to defeat COVID-19 have been making steady progress as vaccine rollout
started in the U.K. and the U.S. and the Japanese government is also working to establish a vaccination system.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of ¥18,136
million (down 2.5% from the same period of the previous fiscal year) due to a decrease in sales of Water Supply & Drainage
Service because of the impact of COVID-19 despite the start of the operation of new facilities completed in the fiscal year ended
March 31, 2020. Operating income was ¥3,368 million (down 7.6%), ordinary income was ¥3,233million (down 8.8%).
As part of the support for the impact of COVID-19, we have forgiven rent receivables and heat charge receivables fromcustomers in the aviation industry and recorded the resulting loss as extraordinary loss, resulting in profit attributable toowners of parent of ¥1,593 million (down 27.7%)
Also during the period, we worked on the initiative to introduce clean energy in Tokyo International Airport by installinga solar self-consumption equipment in the domestic cargo terminal facility. This project has been certified as the “Project toExpand the Introduction of Local Production and Local Consumption-type Renewable Energy” subject to the subsidies fromthe Tokyo Metropolitan Government. We will continue to contribute to the achievement of sustainable society through ourbusiness activities.
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥14,258 million (up 1.8% from the same period of the previous fiscal year) due tothe start of operation of a new warehouse building of the Technical Center, an in-flight meal factory in ARC Building at
Tokyo International Airport, and the new extended hangar at Kobe Airport completed after December 2019.
Operating income was ¥2,521 million (down 5.0%) mainly due to an increase in repair expenses, etc. related to energysaving promotion.
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport Heating & Cooling Co., Ltd.
recorded net sales of ¥2,502 million (up 2.8%) due to a partial extension in the Tokyo International Airport Passenger
Terminal No. 2 despite a decrease in demand mainly caused by COVID-19. Operating income was ¥955 million (up 27.0%)
due to decreases in fuel costs for electricity and gas and repair expenses.
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥1,375 million (down 36.9% from the same
period of the previous fiscal year) due to a continued significant decrease in water supply and drainage usage as a result of asharp decline in the number of airport users triggered by the impact of COVID-19, and recorded an operating loss of ¥107
million (operating income of ¥240 million in the same period of the previous fiscal year).
(2) Qualitative Information on Consolidated Financial Position- 3 -(Assets)
Total assets as of December 31, 2020 amounted to ¥108,091 million, an increase by ¥3,607 million compared to March 31,
2020, due to an increase in advance payment associated with a construction work of a new dormitory for international students
in Kanto Gakuin University to be completed in March 2021, which was included in others in current assets, and also due torecording of prepaid expenses for annual usage fee of national property.
(Liabilities)
Liabilities as of December 31, 2020 amounted to ¥50,664 million, an increase by ¥2,514 million from March 31, 2020, due
to recording of accrued expenses for annual usage fee of national property.
(Net assets)
Net assets as of December 31, 2020 increased by ¥1,093 million compared to March 31, 2020 to ¥57,427 million mainly due
to an increase in retained earnings.
As a result, equity ratio as of December 31, 2020 decreased by 0.8 points to 50.7% compared to March 31, 2020.
(3) Qualitative Information on Consolidated Earnings Forecast
At this point, there is no change in the Consolidated Earnings Forecast for the Year Ending March 31, 2021 announced in
the Financial Results dated May 14, 2020. Annual dividend of ¥14 per share (including interim dividend of ¥7) are alsoscheduled to be paid as announced in the Financial Results.

- 4 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY3/20(As of March 31, 2020)

Third quarter of FY3/21(As of December 31, 2020)

AssetsCurrent assets
Cash and deposits

6,518,663

9,517,185

Notes and accounts receivable-trade

1,267,240

2,819,721

Lease receivables and investment assets

7,286,793

6,809,441

Operating loans

4,918,584

3,935,377

11,09914,363

Others2,240,924

4,592,769

Total current assets

22,243,308

27,688,857

Buildings and structures, net

50,412,649

48,444,940

Machinery, equipment and vehicles, net

6,365,786

6,531,280

420,294

328,669

Land

14,902,098

14,902,098

Construction in progress

1,537,155

1,359,681

Total property, plant and equipment

73,637,983

71,566,670

Software249,722

212,511

Software in progress

335,029

383,121

Others

15,21915,084

Total intangible assets

599,972

610,717

6,545,514

6,894,524

Raw materials and supplies

Non-current assets
Property, plant and equipment

Tools, furniture and fixtures, net

Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable

1,332

1,031

Deferred tax assets

700,505

595,346

Net defined benefit asset

149,523

117,447

Others616,108627,387

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

Total investments and other assets

8,002,716

8,225,469

82,240,672

80,402,857

104,483,980

108,091,714

Total non-current assets
Total assets- 5 -(Thousands of yen)
FY3/20(As of March 31, 2020)

Third quarter of FY3/21(As of December 31, 2020)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,117,627

555,901

Short-term loans payable

6,642,749

7,086,927

Accounts payable

935,285

957,556

Income taxes payable

567,586

462,698

Accrued expenses

788,460

4,689,995

Unearned revenue

1,117,907

1,191,016

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for removal cost of property, plant and equipment

135,083

68,40926,715

14,177226,392

101,056

Others

330,139440,724

11,887,946

15,568,463

Bonds payable

6,000,000

6,100,000

Long-term loans payable

23,402,486

22,554,502

Long-term guarantee deposited

6,286,570

5,988,970

Long-term accounts payable-other
Provision for retirement benefits for directors (andother officers)
Deferred tax liabilities

326,067

253,1102,436－

16,311

15,384

Provision for removal cost of property, plant and equipment

190,804

112,793

Others37,96571,48836,262,641

35,096,248

48,150,587

50,664,712

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,890

6,982,890

Retained earnings

40,315,327

41,208,458

Treasury stock(1,737,829)(1,700,218)

Total shareholders’ equity

52,386,487

53,317,230

Valuation difference on available-for-sale securities

1,682,442

1,920,716

Foreign currency translation adjustment(214,202)(425,421)

Total accumulated other comprehensive income

1,468,239

1,495,295

Subscription rights to shares

94,72289,284Non-controlling interests

2,383,942

2,525,191

Total net assets

56,333,393

57,427,001

104,483,980

108,091,714

Total current liabilities
Non-current liabilities

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

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 nine months of FY3/20(April 1, 2019 – December 31, 2019)

First nine months of FY3/21(April 1, 2020 – December 31, 2020)

Net sales

18,619,289

18,136,078

Cost of sales

13,464,637

13,329,642

Gross profit

5,154,652

4,806,436

Remuneration for directors (and other officers)

243,826

224,402

Salaries and bonuses

449,443467,812

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for retirement benefits for directors (andother officers)
Transportation and communication expenses

40,191

43,125

13,357

14,1771,044

348

74,01749,355

Depreciation

19,94020,712

Taxes and dues

127,895

127,304

Others537,744490,713

1,507,459

1,437,951

3,647,192

3,368,484

00

Dividends income

175,543

37,770Commission fee

21,861

11,587

Foreign exchange gains
Gain on reversal of provision for removal cost ofproperty, plant and equipment
Others33,950

1,154

5,155

69,25332,12037,691

Total non-operating income

268,631

157,457

Interest expenses

315,255

273,145

Removal cost of property, plant and equipment

48,87912,865

Selling, general, and administrative expenses

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

Non-operating expenses

Others

4,627

6,835

368,761

292,8463,547,062

3,233,095

Insurance income

15,653

143,541

Others6,8392,375

Total extraordinary income

22,493145,916

041,421

Total non-operating expenses
Ordinary income
Extraordinary income

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

31,013－

Loss on disaster

47,777

41,819Loss on response to new infectious disease－684,868

Total extraordinary loss

78,790768,109

Income before income taxes

3,490,764

2,610,901

Income taxes

1,098,339

837,501

Profit2,392,425

1,773,400

185,805

179,578

2,206,619

1,593,821

Profit 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 FY3/20(April 1, 2019 – December 31, 2019)

First nine months of FY3/21(April 1, 2020 – December 31, 2020)

2,392,425

1,773,400

ProfitOther comprehensive income
Valuation difference on available-for-sale securities

86,051

238,273

Foreign currency translation adjustment(161,380)(211,218)

Total other comprehensive income(75,328)

27,0552,317,096

1,800,455

Comprehensive income attributable to owners of parent

2,131,290

1,620,877

Comprehensive income attributable to non-controlling interests

185,805

179,578

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)
Not applicable.
(Application of Specific Accounting Treatments in Preparing the Quarterly Consolidated Financial Statements)(Calculation of tax expenses)
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 toincome before income taxes for the consolidated fiscal year including the period ended December 31, 2020.
(Additional information)(Impacts of COVID-19 on the accounting estimates)
During the nine months ended December 31, 2020, there was no material change in the impact of COVID-19 on theaccounting estimates described in the Annual Securities Report for the year ended March 31, 2020.

- 9 -