October 28, 2021

Financial Results for the Second 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:
November 1, 2021
The Date of the Dividend Payment Start:
November 29, 2021
Preparation of Quarterly Earnings Presentation Material:
Yes
Holding of Quarterly Earnings Announcement:
Yes (for analysts)(Figures are rounded off to the nearest million yen.)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 2022 (April 1, 2021 - September 30, 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 six months ended

Millions of yen

September 30, 2021
September 30, 202011,922
12,181% Millions of yen

(2.1)
(3.0)

(Note) Comprehensive income:% Millions of yen

2,073
2,250

(7.8)
(10.2)First six months ended September 30, 2021:
First six months ended September 30, 2020:

Basic earnings per
share% Millions of yen

1,968
2,153

(8.5)
(11.3)

%

1,308
972

34.5
(36.5)

1,831 million yen 108.5%
878 million yen (32.2 %)Diluted earnings
per shareFirst six months ended

Yen

Yen

September 30, 2021
September 30, 2020

26.20
19.49

26.11
19.42

(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Millions of yen%

Yen

103,184
100,429

56,40854,96452.1
52.1

1,077.16
1,049.44

As of September 30, 2021
As of March 31, 2021
(Reference) Equity capital:

Net assets

Millions of yen

As of September 30, 2021: 53,794 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 September 30, 2021:(including treasury stock)2) Number of treasury stock
As of September 30, 2021:
3) Average number of shares during
the period

First six months ended
September 30, 2021:

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

52,979,350 shares

3,038,419 shares As of March 31, 2021:

3,068,347 shares

49,925,991 shares First six months ended
September 30, 2020:

49,877,063 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 September 30,
2021 (3) Qualitative Information on Consolidated Earnings Forecast”.

- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended September 30, 2021
(1) Explanation about Business Results
During the six months ended September 30, 2021, Japanese economy continued to experience severe situation due to aresurgence of COVID-19 although it showed signs of recovery. The fourth state of emergency, initially issued in July, waslater expanded to include many more prefectures and extended repeatedly in response to an exponential growth in infections
from late July to early September. The Tokyo 2020 Olympic and Paralympic Games, which were held mostly without
spectators, resulted in a limited economic benefit, and services and travels also remained stagnant.
While the outlook still remains uncertain, the economy is expected to turn around as the state of emergency was fully liftedin October and the vaccinations have been steadily progressing.
In the aviation industry, although passenger demand recovered from a year earlier, both international and domestic flights
continued to be reduced or suspended. Domestic flights experienced sluggish demand for traveling or returning home during
summer vacation season including Obon holiday season mainly in areas under the state of emergency or quasi-state of
emergency, and international flights also continued to be affected by strict restrictions on entry and exit issued by a numberof governments. While the prospect for recovery in passenger demand is uncertain, airline companies are working on network
reorganization, enhancement of alliance with LCCs and cost reduction and the number of domestic flights is planned toincrease in anticipation of a growth in the number of travelers as the state of emergency was lifted.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of ¥11,922
million (down 2.1% from the same period of the previous fiscal year) as the debt forgiveness of rent receivables from airline
companies in support of those facing financial difficulties due to the prolonged COVID-19 pandemic was deducted from net
sales, despite the operation of new facilities completed in the fiscal year ended March 31, 2021. Operating income was ¥2,073
million (down 7.8%), ordinary income was ¥1,968 million (down 8.5%), and profit attributable to owners of parent was¥1,308 million (up 34.5%).
(Reference: For the six months ended September 30, 2020, debt forgiveness of rent receivables was recorded as
extraordinary loss. If such loss had been deducted from net sales in the same manner as this year, net sales, operating
income, and ordinary income would have been ¥11,499 million, ¥1,568 million, and ¥1,472 million, respectively, resulting
in a year-on-year increase for the six months ended September 30, 2021 in these three items.)
In addition, the Group launched a new internal core system in July with an aim to standardize and improve efficiency ofour basic operation including sales management in the real estate business as well as to enhance customer services. We
will continue our efforts to enhance information infrastructure security and improve productivity.
In terms of promoting sustainability, our solar power generation equipment installed in the Domestic Cargo Terminal
Area in Tokyo International Airport last December started full-year operation. We also established the Sustainability
Promotion Department as the responsible department in July with an aim to further accelerate these initiatives.
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥9,463 million (down 0.8% from the same period of the previous fiscal year) as
debt forgiveness of rent receivables to support airline companies was deducted from net sales, despite the operation of adormitory for international students completed in March 2021. Operating income was ¥1,710 million (down 1.6%).
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport Heating & Cooling Co., Ltd.
recorded net sales of ¥1,482 million (down 14.0% from the same period of the previous fiscal year) and operating incomeof ¥351 million (down 38.8%) due to a slight decrease in net sales as the average summer temperature was somewhat lower
than last year, in addition to deducting debt forgiveness of heat charge receivables to support airline companies from net
sales.
(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥977 million (up 7.2% from the same period of
the previous fiscal year) as water supply and drainage usage showed some recovery compared to a year earlier when thenumber of airport users dropped sharply due to the spread of COVID-19, and recorded an operating income of ¥10 million(operating loss of ¥64 million in the same period of the previous fiscal year).

- 3 -(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of September 30, 2021 amounted to ¥103,184 million, an increase by ¥2,755 million compared to March
31, 2021, mainly due to recording of prepaid expenses for annual usage fee of national property despite depreciation ofbuildings, etc.
(Liabilities)
Total liabilities as of September 30, 2021 amounted to ¥46,775 million, an increase by ¥1,311 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
payable through scheduled repayments.
(Net assets)
Net assets as of September 30, 2021 increased by ¥1,443 million compared to March 31, 2021 to ¥56,408 million mainly due
to an increase in retained earnings.
As a result, equity ratio as of September 30, 2021 was the same level as of March 31, 2021 at 52.1%.
(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)

Second quarter of FY3/22(As of September 30, 2021)

AssetsCurrent assets
Cash and deposits

6,583,181

7,933,420

Notes and accounts receivable-trade

1,373,918

2,632,508

Lease receivables and investment assets

10,502,602

10,567,714

Operating loans

3,586,074

3,267,795

Raw materials and supplies

15,877

17,094

Others146,132

2,424,710

22,207,786

26,843,244

Buildings and structures, net

46,577,715

45,057,011

Machinery, equipment and vehicles, net

6,400,593

6,113,837

310,636

311,578

Land

13,985,705

13,985,705

Construction in progress

1,416,281

1,367,327

Total property, plant and equipment

68,690,931

66,835,460

Software202,364

576,872

Software in progress

463,525－

Others19,813

19,561

Total intangible assets

685,702596,434

7,092,761

7,231,733

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

Tools, furniture and fixtures, net

Intangible assets

Investments and other assets
Investment securities

931

731

Deferred tax assets

906,445857,951

Net defined benefit asset

228,866

207,566

Others626,255

621,620

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

Total investments and other assets

8,844,993

8,909,337

78,221,628

76,341,231

100,429,415

103,184,475

Long-term loans receivable

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

Second quarter of FY3/22(As of September 30, 2021)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,079,625

662,641

Short-term loans payable

6,325,177

4,538,850

Accounts payable

1,131,097

505,117156,069

695,554

Accrued expenses

102,8024,308,519

Unearned revenue

1,100,926

1,191,584

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

129,812

154,540

28,35528,88078,011－Others386,666

368,931

10,518,542

12,454,619

Bonds payable

6,100,000

6,100,000

Long-term loans payable

22,287,170

21,720,846

Long-term guarantee deposited

6,163,216

6,121,064

Long-term accounts payable-other

260,254

241,671

Deferred tax liabilities

22,56624,888Provision for removal cost of property, plant and equipment

112,793

112,793

34,946,000

34,321,263

45,464,542

46,775,883

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,890

6,982,890

Retained earnings

38,680,850

39,636,072

Treasury stock(1,700,228)(1,683,652)

Total shareholders’ equity

50,789,611

51,761,409

Valuation difference on available-for-sale securities

2,054,158

2,164,038

Foreign currency translation adjustment(464,980)(130,908)

Total accumulated other comprehensive income

1,589,177

2,033,129

Subscription rights to shares

89,284

76,178Non-controlling interests

2,496,798

2,537,873

Total net assets

54,964,872

56,408,591

100,429,415

103,184,475

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 six months of FY3/21(April 1, 2020 – September 30, 2020)

First six months of FY3/22(April 1, 2021 – September 30, 2021)

Net sales

12,181,659

11,922,990

Cost of sales

8,941,795

8,736,994

Gross profit

3,239,864

3,185,996

Remuneration for directors (and other officers)

132,867

128,451

Salaries and bonuses

255,595

266,995

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

95,156

101,728

28,35528,880348－

30,89531,758Depreciation

13,74534,802

Selling, general, and administrative expenses

Taxes and dues

88,58888,871Others344,063

430,911

989,615

1,112,399

2,250,249

2,073,597

00Dividends income

29,22134,800Commission fee

7,708

4,537

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

2,684

1,162

39,300－24,793

21,962

Total non-operating income

103,70762,464

185,424

161,066

8,830

5,332

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

Non-operating expenses
Interest expenses
Removal cost of property, plant and equipment
OthersTotal non-operating expenses
Ordinary income

5,949

1,071

200,204

167,470

2,153,752

1,968,591

Extraordinary income
Insurance income
Gain on sales of investment securities

143,541－－

59,5802,375－

145,916

59,580Loss on retirement of non-current assets

22,305

2,332

Loss on disaster

35,010－Loss on debt forgiveness

681,702－

Total extraordinary loss

739,018

2,332

Income before income taxes

1,560,650

2,025,839

507,252

638,351

OthersTotal extraordinary income
Extraordinary loss

Income taxes
Profit

1,053,397

1,387,487

Profit attributable to non-controlling interests

80,85579,404

Profit attributable to owners of parent

972,542

1,308,083- 7 -(Quarterly Consolidated Statements of Comprehensive Income)(Thousands of yen)First six months of FY3/21(April 1, 2020 – September 30, 2020)

First six months of FY3/22(April 1, 2021– September 30, 2021)

1,053,397

1,387,487

Valuation difference on available-for-sale securities(16,597)

109,879

Foreign currency translation adjustment(158,560)

334,072

Total other comprehensive income(175,157)

443,952

878,240

1,831,439

Comprehensive income attributable to owners of parent

797,385

1,752,035

Comprehensive income attributable to non-controlling interests

80,85579,404

ProfitOther 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.
This application had no impact on profit or loss for the six months ended September 30, 2021.
(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 September 30, 2021.
(Additional information)(Impacts of COVID-19 on the accounting estimates)
During the six months ended September 30, 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 -