October 26, 2023

Financial Results for the Second Quarter of the Year Ending March 31, 2024 [J-GAAP](Consolidated)
Company Name:AIRPORT FACILITIES CO., LTD. (AFC)Stock Exchange Listed on:
Tokyo Stock Exchange (Prime Market)
Company Code:8864
URL: https://www.afc.jp/english/
Representative: Shigeo Tamura, President & CEO
Inquiries: Shigeyuki Kodama, Executive Officer, General Manager of Accounting and Financial Affairs Dept.
TEL: +81-3-3747-0251
The Date of Filing the Quarterly Securities Report:
November 1, 2023
The Date of the Dividend Payment Start:
November 24, 2023
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 2024 (April 1, 2023 – September 30, 2023)(1) Consolidated Business Results(Percentages are changes from the same period of the previous year.)Net salesFirst six months ended

Millions of yen

September 30, 2023
September 30, 2022

13,114
12,715

Operating income% Millions of yen

3.1
6.6

(Note) Comprehensive income:% Millions of yen

1,926
1,807

Profit attributable toowners of parent

Ordinary income

6.6(12.8)% Millions of yen

1,941
1,699

14.2
(13.6)

1,241
1,297

%

(4.2)
(0.8)

First six months ended September 30, 2023: 2,146 million yen (16.4%)
First six months ended September 30, 2022: 2,568 million yen 40.2%

Basic earnings per
share

Diluted earnings
per shareFirst six months ended

Yen

Yen

September 30, 2023
September 30, 2022

24.77
25.95

24.75
25.89

(2) Consolidated Financial Position
Total assets

Equity ratio

Millions of yen

Millions of yen

108,173
100,40360,26757,368

As of September 30, 2023
As of March 31, 2023
(Reference) Equity capital:

Net assets

Net assets per share
%

Yen

53.3
54.5
51.4 million yen
As of March 31, 2023: 54,799

As of September 30, 2023: 57,668 million yen

1,149.06
1,095.16
1,055.28

2. Dividends
Dividends per share

Q1

Q2
Yen

FY ended March 31, 2023
FY ending March 31, 2024
FY ending March 31, 2024 (Forecasts)

Q3
Yen

―
―

Q4

Annual

Yen

7.00
7.00

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 2024 (April 1, 2023 - March 31, 2024)(Percentages are changes from the same period of the previous year.)Net sales
Millions of yen

Full fiscal year

26,037

Operating income% Millions of yen

2.0

2,764

Profit attributable toowners of parent

Ordinary income

Basic earnings
per share%

Millions of yen%

Millions of yen

%

Yen

10.3

2,664

25.5

1,681

7.4

33.53

(Note) Changes in the latest forecasts released: Yes- 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.: 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 treasury stock)2) Number of treasury stock

As of September 30, 2023:

52,979,350 shares As of March 31, 2023:

52,979,350 shares

As of September 30, 2023:

2,791,644 shares As of March 31, 2023:

2,941,665 shares

50,128,894 shares First six months ended
September 30, 2022:

49,989,263 shares

3) Average number of shares during First six months ended
the period
September 30, 2023:* Financial Results report is outside the scope of an audit 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 andsome conditions that we judge rational, and therefore they do not constitute a guarantee that they will be realized. Actual earnings may differ
greatly from the above forecasts for various reasons. For the assumptions for earnings forecasts and cautions regarding the use of the earnings
forecasts, please refer to page 4 “1. Qualitative Information on Consolidated Financial Results for the Quarter Ended September 30, 2023 (3)Qualitative Information on Consolidated Earnings Forecast.”- 2 -1. Qualitative Information on Consolidated Financial Results for the Quarter Ended September 30, 2023
(1) Explanation about Business Results
During the six months ended September 30, 2023, the Japanese economy continued to be on a gradual recovery trend as
the economic activity has been recovering after the legal status of COVID-19 under the law on infectious diseases wasdowngraded to Class 5. Meanwhile, we still need to carefully monitor risks that may put downward pressure on the Japanese
economy such as surging prices due to exchange rate fluctuations and high energy prices and the deteriorating situations in
the Middle East.

In the aviation industry, travel demand and inbound tourism showed favorable growth following the easing of movement
restrictions, and the number of passengers increased year on year in both domestic and international flights. We expect thatpassenger demand will continue to be on a recovery trend.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of¥13,114 million (up 3.1% from the same period of the previous fiscal year) mainly because there was a continued recovery
trend in water supply and drainage usage despite a decrease in net sales as a consequence of sales of hotels and officebuildings for lease in February 2023. Operating income was ¥1,926 million (up 6.6%), ordinary income was ¥1,941 million(up 14.2%) mainly due to recording of gain on investments in silent partnership, etc. by an aircraft leasing fund and a decreasein provision for removal cost related to various constructions, and profit attributable to owners of parent was ¥1,241 million(down 4.2%).
Profit attributable to owners of parent decreased year-on-year as consumption taxes refund in relation to the filing ofamended returns for corporate and consumption taxes was recorded as extraordinary income for the year ended March 31,2023.
Performance by business segment is as follows:(i) Real Estate Business
Real estate business recorded net sales of ¥9,767 million (down 0.6% from the same period of the previous fiscal year)
due to a decrease in net sales as a consequence of sales of hotels and office buildings for lease in February 2023 despite anincrease in net sales due to lease of office buildings acquired as part of our aggressive efforts related to non-asset business,
one of the priority measures in the Medium- to Long-Term Management Plan (we acquired “Hiroshima Motomachi NS
Building (Naka-ku, Hiroshima City)” in March 2023, “Shinjuku Yawaragi Building (Shinjuku-ku, Tokyo)” in June and“Gofukukan (Aoi-ku, Shizuoka City)” in August) and increases in variable rents and parking lot revenue following therecovery in economic activities. Operating income was ¥1,447 million (down 1.4%) due to an increase in taxes and dues
associated with the acquisition of office buildings despite a decrease in depreciation, etc. related to sold facilities.
(ii) Area Heating & Cooling Business
Area Heating & Cooling Business operated by our consolidated subsidiary Tokyo Airport Heating & Cooling Co., Ltd.
recorded net sales of ¥1,839 million (up 3.9% from the same period of the previous fiscal year) as sales from cold/heatenergy supply increased year-on-year mainly due to the intense summer heat. Operating income was ¥265 million (up 3.5%)
as a decline in gas prices from the previous fiscal year’s level resulted in a decrease in raw material costs although periodic
maintenance expenses for cooling machines and boilers were recorded.

(iii) Water Supply & Drainage Service and Other Business
Water Supply & Drainage Service and Other Business recorded net sales of ¥1,506 million (up 34.7% from the same
period of the previous fiscal year) and operating income of ¥213 million (up 161.7%) mainly because the number ofpassengers has recovered and water supply and drainage usage is returning to the pre-COVID-19 level following thedowngrade of COVID-19 to Class 5 and the shared telecommunications business also showed steady growth.
In addition, from the six months ended September 30, 2023, we installed solar power generation equipment on therooftop of our engine maintenance shop in a Singaporean consolidated subsidiary (AIRPORT FACILITIES ASIA PTE.
LTD.) and started selling electricity to the tenants of the facility for self-consumption.

- 3 -As part of our aggressive efforts related to non-asset business, we acquired “Nihonbashi Hamacho 2-chome Building(Chuo-ku, Tokyo)” and “Ichibancho 27 Building (Chiyoda-ku, Tokyo)” in October 2023. We aim to increase the property
value of these buildings and the acquired buildings mentioned in (i) above through value enhancement work.
The Group will continue to make a unified effort to steadily carry out various business strategies based on the Mediumto Long-Term Management Plan.
(2) Qualitative Information on Consolidated Financial Position(Assets)
Total assets as of September 30, 2023 amounted to ¥108,173 million, an increase by ¥7,770 million compared toMarch 31, 2023, mainly due to an increase in real estate for sale as a result of an acquisition of office buildings in nonasset business, recording of prepaid expenses for annual usage fee of national property and an increase in investment
securities as a result of additional investment in an aircraft leasing fund despite a decrease in property, plant andequipment due to depreciation of buildings and asset retirement assets.
(Liabilities)
Total liabilities as of September 30, 2023 amounted to ¥47,906 million, an increase by ¥4,871 million compared toMarch 31, 2023, mainly due to an increase in short-term loans payable associated with an acquisition of real estate forsale and recording of accrued expenses for annual usage fee of national property despite a decrease in long-term loans
payable.
(Net assets)
Net assets as of September 30, 2023 increased by ¥2,898 million compared to March 31, 2023 to ¥60,267 million
mainly due to an increase in retained earnings.
As a result, equity ratio as of September 30, 2023 decreased by 1.2 points to 53.3% compared to March 31, 2023.
(3) Qualitative Information on Consolidated Earnings Forecast
The Consolidated Earnings Forecast for the Year Ending March 31, 2024 announced on May 11, 2023 has been revised.
Please see “Announcement on the Difference Between Earnings Forecast and Actual Results for the Six Months Ended
September 30, 2023 and Revision to Full-Year Consolidated Earnings Forecast” (Japanese version only) released on October,
26, 2023 for details.

- 4 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)

FY3/23(As of March 31, 2023)

Second quarter of FY3/24(As of September 30, 2023)

AssetsCurrent assets
Cash and deposits

8,598,633

8,276,396

Accounts receivable - trade

1,343,102

2,094,844

Lease receivables and investment assets

11,019,327

11,203,248

Operating loans

4,067,980

4,123,948

－

2,359

2,988,214

7,761,541

Raw materials and supplies

12,36013,083

Others851,6173,330,123

28,881,236

36,805,547

Buildings and structures, net

42,133,640

42,623,387

Machinery, equipment and vehicles, net

5,210,042

4,989,661

122,486

142,301Land

10,805,148

10,805,148

Construction in progress

2,113,525

237,981

Total property, plant and equipment

60,384,843

58,798,480

Software413,782

389,119

Others35,32935,239Total intangible assets

449,111424,358

Investment securities

9,256,745

10,811,690

Deferred tax assets

652,032

550,275

Net defined benefit asset

198,748

179,326

Others590,759

614,146

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

Total investments and other assets

10,688,019

12,145,172

71,521,975

71,368,011

100,403,211

108,173,558

Merchandise
Real estate for sale

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

Tools, furniture and fixtures, net

Intangible assets

Investments and other assets

Total non-current assets
Total assets- 5 -(Thousands of yen)

FY3/23(As of March 31, 2023)

Second quarter of FY3/24(As of September 30, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,691,141

1,062,681

Short-term loans payable

5,066,580

8,351,875

Accounts payable

1,230,829

252,638

Income taxes payable

79,273700,141

Accrued expenses

94,6082,243,688

Unearned revenue

1,022,220

1,747,612

152,002141,723

31,40014,425

179,322

114,599

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

318,320733,029

9,865,698

15,362,415

Bonds payable

6,100,000

6,100,000

Long-term loans payable

16,134,790

15,501,969

Long-term guarantee deposited

6,314,218

6,443,823

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

179,994

121,010

1,044

4,740

41,363

46,201

Provision for removal cost of property, plant and equipment

115,447

44,389Asset retirement obligations

4,281,762

4,281,762

Total non-current liabilities

33,168,620

32,543,895

43,034,318

47,906,311

Capital stock

6,826,100

6,826,100

Capital surplus

6,982,890

6,982,890

Retained earnings

39,660,392

41,598,319

Treasury stock(1,630,050)(1,546,939)

Total shareholders’ equity

51,839,332

53,860,370

2,063,074

2,293,640

896,997

1,514,779

2,960,071

3,808,419

Subscription rights to shares

50,33022,923

Non-controlling interests

2,519,158

2,575,535

Total net assets

57,368,892

60,267,247

100,403,211

108,173,558

OthersTotal current liabilities
Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income

Total liabilities and net assets- 6 -(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Remuneration for directors (and other officers)
Salaries and bonuses
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for retirement benefits for directors (andother officers)
Transportation and communication expenses
Depreciation
Taxes and dues
OthersTotal selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Commission fee
Gain on investments in silent partnership, etc.
Foreign exchange gains
OthersTotal non-operating income
Non-operating expenses
Interest expenses
Removal cost of property, plant and equipment
Provision for removal cost
OthersTotal non-operating expenses
Ordinary income
Extraordinary income
Consumption taxes refund
OthersTotal extraordinary income
Extraordinary loss
Loss on retirement of non-current assets
Loss on cancellation of golf club membership
Total extraordinary loss
Income before income taxes
Income taxes
Income taxes for prior periods
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

First six months of FY3/23(April 1, 2022 – September 30, 2022)
12,715,504
9,815,318
2,900,186

First six months of FY3/24(April 1, 2023 - September 30, 2023)
13,114,139
10,171,956
2,942,182

121,485
271,993
95,140109,845306,568
97,97315,70011,019348

2,046

37,08850,95095,566
404,786
1,093,058
1,807,127

42,26353,157
68,705
324,054
1,015,633
1,926,549

066,107
9,996
－
2,613
87,211
165,9291
55,556
14,51659,930
97834,415
165,398

143,811
7,264
121,077
1,175
273,328
1,699,729

131,238
19,594－2
150,835
1,941,111

315,363
19,983335,347

－
－
－

1,954
3,000
4,954
2,030,122580,056
100,174
680,231
1,349,890
52,474
1,297,416

251
－
251
1,940,860
642,549－
642,549
1,298,310
56,3771,241,933- 7 -(Quarterly Consolidated Statements of Income)(Thousands of yen)First six months of FY3/23(April 1, 2022 –September 30, 2022))
1,349,890

First six months of FY3/24(April 1, 2023 - September 30, 2023)
1,298,310

Valuation difference on available-for-sale securities

213,997

230,565

Foreign currency translation adjustment

1,005,016

617,782

Total other comprehensive income

1,219,013

848,347

2,568,903

2,146,658

Comprehensive income attributable to owners of parent

2,516,429

2,090,281

Comprehensive income attributable to non-controlling interests

52,47456,377

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 Significant Subsidiaries during the Period)
Not applicable.
Although this does not constitute a change in significant subsidiaries, AFC Asset Management Co., Ltd. and AFC
Shoji Co., Ltd., which were non-consolidated subsidiaries for the year ended March 31, 2023, are included in the scopeof consolidation from the three months ended June 30, 2023 as they became significant.
(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 rateapplicable to income before income taxes for the consolidated fiscal year including the period ended September 30,
2023.

- 9 -