January 27, 2022

Financial Results for the Third Quarter of the Year Ending March 31, 2022 [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: Toshiaki Norita, 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, 2022
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 2022 (April 1, 2021 - December 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
First nine months ended

Millions of yen

December 31, 2021
December 31, 2020

17,74818,136% Millions of yen

(2.1)
(2.5)

(Note) Comprehensive income:% Millions of yen

3,061
3,368

(9.1)
(7.6)

First nine months ended December 31, 2021:
First nine months ended December 31, 2020:

Basic earnings per
share% Millions of yen

2,883
3,233

(10.8)
(8.8)

%

1,905
1,593

19.5
(27.7)

2,125 million yen 18.0%
1,800 million yen (22.2 %)Diluted earnings
per shareFirst nine months ended

Yen

Yen

December 31, 2021
December 31, 2020

38.15
31.94

38.02
31.82

(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Millions of yen%

Yen

103,790
100,429

56,35254,96451.7
52.1

1,075.22
1,049.44

As of December 31, 2021
As of March 31, 2021
(Reference) Equity capital:

Net assets

Millions of yen

As of December 31, 2021: 53,697 million yen

As of March 31, 2021: 52,378 million yen

2. Dividends
Dividends per share

Q1

Q2
Yen

FY ended March 31, 2021
FY ending March 31, 2022
FY ending March 31, 2022 (Forecasts)

Q3
Yen

7.00
7.00

－
－

Q4

Annual

Yen

－
－

Yen

Yen

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 2022 (April 1, 2021 - March 31, 2022)(Percentages are changes from the same period of the previous year.)Net sales
Full fiscal year

Operating income

Profit attributable toowners of parent

Ordinary income

Basic earnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

24,2620.4

3,349(12.5)

2,633(27.2)

1,610

－

32.25

(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
As of December 31, 2021:(including treasury stock)2) Number of treasury stock
As of December 31, 2021:
3) Average number of shares during
the period

First nine months ended
December 31, 2021:

52,979,350 shares As of March 31, 2021:

52,979,350 shares

3,038,511 shares As of March 31, 2021:

3,068,347 shares

49,930,940 shares First nine months ended
December 31, 2020:

49,888,381 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,
2021 (3) Qualitative Information on Consolidated Earnings Forecast”.

- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended December 31, 2021
(1) Explanation about Business Results
During the nine months ended December 31, 2021, Japanese economy witnessed continued improvement in consumer
spending, including travels and dining out, and recovery in business sentiment among companies after the COVID-19 stateof emergency was lifted in October 2021. In the aviation industry, domestic flights continued to recover gradually after the
COVID-19 state of emergency was lifted and showed steady growth, with a year-on-year increase in the demand for yearend homecoming and travelling.
Subsequently, however, a new variant “Omicron” spread around the world at a blistering pace, and the number of infections
has surged in Japan after the new year. The Japanese government tightened the border control and also implemented othervarious measures taking into consideration the characteristics of the Omicron variant, including vaccine booster shots andoral antivirals, in a bid to both contain the spread of infections and maintain socioeconomic activities.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of ¥17,748
million (down 2.1% from the same period of the previous fiscal year) due to deduction from net sales of debt forgiveness ofrent receivables from airline companies in support of those facing financial difficulties resulting from the expansion of
COVID-19 pandemic attributable to the six months ended September 30, 2021, in addition to estimated debt forgivenessattributable to the three months ended December 31, 2021, despite the operation of new facilities completed in the fiscal year
ended March 31, 2021. Operating income was ¥3,061 million (down 9.1%), ordinary income was ¥2,883 million (down
10.8%), and profit attributable to owners of parent was ¥1,905 million (up 19.5%).
(Reference: For the nine months ended December 31, 2020, debt forgiveness of rent receivables attributable to the six
months ended September 30, 2020 was recorded as extraordinary loss, but the estimated debt forgiveness attributable to thethree months ended December 31, 2020 was not recorded as it was not decided whether receivables would be forgiven. If allof those amounts had been deducted from net sales in the same manner as this year, net sales, operating income, and ordinary
income would have been ¥17,108 million, ¥2,340 million, and ¥2,205 million, respectively, resulting in a year-on-yearincrease for the nine months ended December 31, 2021 in these three items.)

In addition, as part of our effort to expand business domains, we acquired land and a building in Koshigaya City, Saitama
Prefecture and leased them to a modified car company in the three months ended December 31, 2021. In overseas, we areplanning to offer financing for procurement of aircraft engines. Taking advantage of our know-how accumulated over theyears in our businesses inside and outside the airports, the Company and the Group aim to further expand our business outside
the airports and overseas.
As part of our continuing effort to aggressively promote sustainability, we set the basic policy in December 2021 andestablished “Sustainability Promotion Committee” effective January 1, 2022, where we will discuss our medium- to longterm themes and directions as well as measures regarding material issues (materiality), KPIs, environmental risks, creationof business opportunities, and the Task Force on Climate-Related Financial Disclosures (TCFD).
It has been decided that we will transit to the “Prime Market” under the new market segments of the Tokyo Stock Exchangescheduled to start on April 4, 2022.
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥14,124 million (down 0.9% from the same period of the previous fiscal year)
due to deduction from net sales of debt forgiveness of rent receivables to support airline companies attributable to the six
months ended September 30, 2021, in addition to estimated debt forgiveness attributable to the three months ended
December 31, 2021, despite the operation of a dormitory for international students completed in March 2021. Operating
income was ¥2,526 million (up 0.2%).
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport Heating & Cooling Co., Ltd.
recorded net sales of ¥2,152 million (down 13.9% from the same period of the previous fiscal year) due to a slightdecrease in sales as well as deduction from net sales of debt forgiveness of heat charge receivables to support airline
companies attributable to the six months ended September 30, 2021, in addition to estimated debt forgiveness attributable
to the three months ended December 31, 2021. Operating income was ¥532 million (down 44.2%) due to increases in
raw material costs of electricity and gas.

- 3 -(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥1,470 million (up 6.9% from the same
period of the previous fiscal year) and operating income of ¥2 million (operating loss of ¥107 million in the same periodof the previous fiscal year) due to a slight increase in water supply and drainage usage compared to a year earlier when
the number of airport users dropped sharply as well as expansion of shared telecommunications network.
(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of December 31, 2021 amounted to ¥103,790 million, an increase by ¥3,360 million compared to March 31,
2021, mainly due to recording of prepaid expenses for annual usage fee of national property despite depreciation of buildings,
etc.
(Liabilities)
Total liabilities as of December 31, 2021 amounted to ¥47,437 million, an increase by ¥1,972 million compared to March 31,
2021, mainly due to recording of accrued expenses for annual usage fee of national property despite a decrease in loans payablethrough scheduled repayments.
(Net assets)
Total net assets as of December 31, 2021 increased by ¥1,388 million compared to March 31, 2021 to ¥56,352 million mainly
due to an increase in retained earnings.
As a result, equity ratio as of December 31, 2021 decreased by 0.4 points to 51.7% compared to March 31, 2021.
(3) Qualitative Information on Consolidated Earnings Forecast
There is no change as to Consolidated Earnings Forecast for the Year Ending March 2022 which was announced in the
Financial Results for the Year Ended March 31, 2021 [J-GAAP] dated May 13, 2021.

- 4 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY3/21(As of March 31, 2021)

Third quarter of FY3/22(As of December 31, 2021)

AssetsCurrent assets
6,583,181

Cash and deposits

10,317,729

Notes and accounts receivable-trade

1,373,918

2,820,045

Lease receivables and investment assets

10,502,602

10,517,338

Operating loans

3,586,074

3,086,260

Raw materials and supplies

15,877

15,875

Others146,132

1,630,652

22,207,786

28,387,900

Buildings and structures, net

46,577,715

44,358,218

Machinery, equipment and vehicles, net

6,400,593

5,956,168

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

310,636

287,942Land

13,985,705

14,193,015

Construction in progress

1,416,281

1,523,927

Total property, plant and equipment

68,690,931

66,319,271

Software202,364543,283

Software in progress

463,525－

Others19,813

19,436

Total intangible assets

685,702562,719

7,092,761

6,692,082

931

631

Deferred tax assets

906,445

1,023,943

Net defined benefit asset

228,866

196,916

Others626,255

616,867

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

Total investments and other assets

8,844,993

8,520,174

78,221,628

75,402,165

100,429,415

103,790,066

Tools, furniture and fixtures, net

Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable

Total non-current assets
Total assets- 5 -(Thousands of yen)
FY3/21(As of March 31, 2021)

Third quarter of FY3/22(As of December 31, 2021)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,079,625

544,992

Short-term loans payable

6,325,177

4,539,582

Accounts payable

1,131,097

739,659

156,069

717,742

Accrued expenses

102,802

4,836,184

Unearned revenue

1,100,926

1,264,689

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

129,81285,25528,35537,44078,011－Others386,666

1,287,849

10,518,542

14,053,395

Bonds payable

6,100,000

6,100,000

Long-term loans payable

22,287,170

20,749,404

Long-term guarantee deposited

6,163,216

6,147,826

Long-term accounts payable-other

260,254249,230

Deferred tax liabilities

22,566

24,514

Provision for removal cost of property, plant and equipment

112,793

112,793

34,946,000

33,383,768

45,464,542

47,437,163

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,890

6,982,890

Retained earnings

38,680,850

39,883,432

Treasury stock(1,700,228)(1,683,705)

Total shareholders’ equity

50,789,611

52,008,717

Valuation difference on available-for-sale securities

2,054,158

1,787,928

Foreign currency translation adjustment(464,980)(98,872)

Total accumulated other comprehensive income

1,589,177

1,689,055

Subscription rights to shares

89,284

76,178Non-controlling interests

2,496,798

2,578,951

Total net assets

54,964,872

56,352,903

100,429,415

103,790,066

Income taxes payable

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 FY3/21(April 1, 2020 – December 31, 2020)

First nine months of FY3/22(April 1, 2021 – December 31, 2021)

Net sales

18,136,078

17,748,157

Cost of sales

13,329,642

13,118,464

Gross profit

4,806,436

4,629,693

Remuneration for directors (and other officers)

224,402

199,602

Salaries and bonuses

467,812473,335

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

43,12559,33814,17737,440348－

49,35549,332

Depreciation

20,71262,012

Taxes and dues

127,304

127,292

Others490,713560,234

1,437,951

1,568,587

3,368,484

3,061,10600Dividends income

37,77045,291

Commission fee

11,587

5,911

Foreign exchange gains
Gain on reversal of provision for removal cost of
property, plant and equipment
Others

1,154

2,048

69,253－37,69132,491

Total non-operating income

157,457

85,744

Interest expenses

273,145

237,440

Removal cost of property, plant and equipment

12,86525,096

Selling, general, and administrative expenses

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

Non-operating expenses

OthersTotal non-operating expenses
Ordinary income

6,835

1,123

292,846

263,660

3,233,095

2,883,190－

59,580143,541－

Extraordinary income
Gain on sales of investment securities
Insurance income

2,375

4,927

145,916

64,507

Loss on retirement of non-current assets

41,421

2,332

Loss on disaster

41,819－Loss on response to new infectious disease684,868－

Total extraordinary loss

768,109

2,332

Income before income taxes

2,610,901

2,945,365

837,501

919,853

1,773,400

2,025,512

179,578

120,481

1,593,821

1,905,030

OthersTotal extraordinary income
Extraordinary loss

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 FY3/21(April 1, 2020 – December 31, 2020)

First nine months of FY3/22(April 1, 2021– December 31, 2021)

1,773,400

2,025,512

Valuation difference on available-for-sale securities

238,273(266,230)

Foreign currency translation adjustment(211,218)

366,108

27,05599,8781,800,455

2,125,390

Comprehensive income attributable to owners of parent

1,620,877

2,004,908

Comprehensive income attributable to non-controlling interests

179,578

120,481

ProfitOther comprehensive income

Total 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.
(Changes in Accounting Policies)(Application of the accounting standard for revenue recognition)
On April 1, 2021, the Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, March
31, 2020, “Accounting Standard for Revenue Recognition”), etc., and recognizes revenue at an amount that it expects toreceive in exchange for the promised goods or services when the control of the goods or services is transferred to a customer.
The variable portion of the promised consideration is deducted from net sales.
However, the Company applied the method stipulated by Paragraph 86 of the Accounting Standard for Revenue
Recognition and did not retrospectively apply the new accounting policy to contracts for which almost all revenue wererecognized prior to April 1, 2021 according to the previous treatment.
As a result, net sales, operating income, ordinary income, and income before income taxes for the nine months ended
December 31, 2021 decreased by ¥108,830 thousand, respectively.
(Application of the accounting standard for fair value measurement)
On April 1, 2021, the Company applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30,
July 4, 2019, “Accounting Standard for Fair Value Measurement”), etc., and the new accounting policies stipulated in the
Accounting Standard for Fair Value Measurement, etc. are applied prospectively pursuant to the transitional treatment
stipulated by Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). The application has no impact on the quarterly
consolidated financial statements.
(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, 2021.
(Additional information)(Impacts of COVID-19 on the accounting estimates)
During the nine months ended December 31, 2021, 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, 2021.

- 9 -