May 14, 2013

Financial Results for the Year Ended March 31, 2013 [J-GAAP]
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 the ordinary general shareholders’ meeting:June 27, 2013
The date of the dividend payment start:
June 28, 2013
The date of filing the securities report:
June 27, 2013
Preparation of earnings presentation material:
Yes
Holding of 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 Year Ended March 2013 (April 1, 2012 - March 31, 2013)(1) Consolidated Business Results(Percentages are changes from the same period of the previous year.)Net sales
Operating income
Ordinary income
Net income
Fiscal year ended

Millions of yen

March 31, 2013
March 31, 2012

% Millions of yen

21,06820,8061.3(7.6)(Note) Comprehensive income:% Millions of yen

3,363
2,771

21.4
11.5

Fiscal year ended March 31, 2013:
Fiscal year ended March 31, 2012:

Net income
per share
Fiscal year ended

March 31, 2013
March 31, 2012

Diluted net income
per share% Millions of yen

3,490
2,711

28.7
13.1

1,982 million yen
1,985 million yen

%

1,781
1,729

3.0
(15.5)((0.2%))(2.6%)

Ordinary income to Operating margin
total assets

Return on equity

Yen

Yen

%

%

%

34.48
33.46

－
－

3.9
3.8

4.8
3.6

16.0
13.3

(Reference) Equity in earnings of affiliates:

Fiscal year ended March 31, 2013:
Fiscal year ended March 31, 2012:－ million yen－ million yen(2) Consolidated Financial Position
Total assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

73,31774,86447,02647,27462.2
61.4

882.80889.58

As of March 31, 2013
As of March 31, 2012
(Reference) Equity capital:

Net assets

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

As of March 31, 2012: 45,958 million yen(3) Consolidated Cash Flows
Cash flows from operating Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
activities
at year end
Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

5,522
2,861

(3,833)(4,699)(3,516)
3,117

2,737
5,155

March 31, 2013
March 31, 2012
2. Dividends

Total
dividends(annual)Dividends per share

Q1

Q2

Q3

Q4

AnnualPayout ratio(consolidated)

Dividends to
net assets(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

March 31, 2012
March 31, 2013

－
－

6.00
6.00

－
－

6.00
6.00

12.00
12.00

620
620

35.9
34.8

1.3
1.4

－

6.00

－

6.00

12.00

Fiscal year ending

March 31, 2014
（Forecasts）

35.8

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 salesFirst half
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

10,45021,170

(1.4)
0.5

1,720
3,380

(7.3)
0.5

1,670
3,130

(17.3)(10.3)

990
1,730(16.2)
(2.9)

19.16
33.49

- 1 -

＊ Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting from changes in scope of consolidation):No(2) 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: Yes
4) Restatement of revisions: No(3) Number of issued shares (common shares)
1) Number of issued shares
As of March 31, 2013:
54,903,750 shares As of March 31, 2012:
54,903,750 shares(including treasury stock)2) Number of treasury stock
As of March 31, 2013:
3,241,454 shares As of March 31, 2012:
3,241,249 shares
3) Average number of shares during Year ended March 31,
Year ended March 31,
51,662,417 shares
51,662,681 sharesthe period
2013:
2012:

(Reference) Summary of Non-consolidated Results
1. Non-consolidated Financial Results for the Year Ended March 2013 (April 1, 2012 - March 31, 2013)(Percentages are changes from the same period of the previous year.)(1) Non-consolidated Business Results
Operating income
Ordinary income
Net income
Net sales
Fiscal year ended

March 31, 2013
March 31, 2012

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

18,44918,088

2.0
(8.6)

2,578
1,937

33.1
(7.5)

2,932
2,214

32.4
3.3

1,624
1,796

(9.6)
(9.1)

Net income per
share
Fiscal year ended

March 31, 2013
March 31, 2012

Diluted net income
per share

Yen

Yen

31.43
34.77

－
－

Total assets

Net assets(2) Non-consolidated Financial Position

As of March 31, 2013
As of March 31, 2012
(Reference) Equity capital

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

68,36369,03044,887
43,823

65.7
63.5

868.85848.26

As of March 31, 2013: 44,887 million yen

As of March 31, 2012: 43,823 million yen

2. Forecast of Non-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 salesFirst half
Full fiscal year

Ordinary income

Net income per share

Net income

Millions of yen%

Millions of yen%

Millions of yen

%

Yen

9,130
18,480

(1.7)
0.2

1,510
2,620

(14.9)(10.6)

980
1,580(14.5)
(2.7)

18.97
30.58

* Implementation status of audit procedures
The audit procedures stipulated in the Financial Instruments and Exchange Act are not applicable to this Financial Results report, and theprocedures have not been completed when this Financial Results report was disclosed.
* 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. 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 3.

- 2 -1. Analysis of Business Results and Financial Position(1) Analysis of Business Results
During the year ended March 31, 2013, despite certain lingering risks regarding economic slowdown that may betriggered by downturn of overseas economies, the Japanese economy started to show signs of recovery, especially in thesecond half of the fiscal year, including changes towards improvement of the export and business environment asevidenced by weakening yen and rising stock price as a result of economic and monetary policy by the new administration.
In the aviation industry, major airline companies recorded good results, despite the impact from the flight cancellation of
new advanced aircrafts Boeing 787s, mainly due to the recovery of the number of passengers to the pre-earthquake level inboth domestic and overseas operation and the management efforts such as cost savings and improvement of equipment
efficiency.
In addition, the entry of low-cost carriers (LCC) has contributed to increasing demands and the increased capacity forflights arrivals and departures in the Tokyo International Airport and the Narita International Airport created an expectation
for the growth of the aviation industry as a whole, but weak yen and high fuel costs intensified the competition among
domestic and foreign airline companies.
Under such economic conditions, the Group (the Company and its consolidated subsidiaries) recorded net sales of¥21,068 million (up 1.3% from the previous fiscal year), operating income of ¥3,363 million (up 21.4 %),ordinary incomeof ¥3,490 million (up 28.7 %) and net income of ¥1,781 million (up 3.0 %) due to full-year operation of properties
purchased during the fiscal year ended March 31, 2012, new operation of properties purchased during the fiscal year ended
March 31, 2013 and marketing effort for finding large tenants in the Tokyo International Airport.
Performance by business segment is as follows:(i) Real Estate Business
Real Estate Business recorded net sales of ¥14,355 million, an increase by ¥826 million (6.1%) from the previous
fiscal year, and operating income of ¥2,345 million, an increase by ¥873 million (59.3%), as a result of full-year
operation of Rinku International Logistics Center and Kobe Airport Hanger purchased during the fiscal year ended
March 31, 2012, new operation of Kitakyushu Airport Training Center completed during the fiscal year ended March
31, 2013, as well as having new large tenants in West Hanger and No.7 Sogo Building in the Tokyo International
Airport.
(ii) District Heating & Cooling BusinessDistrict Heating & Cooling Business recorded net sales of ¥4,244 million, a decrease by ¥113 million (2.6%) fromthe previous fiscal year, as sales from heating business decreased due to warm winter and a decrease in customers as
a result of partial demolition of decrepit facility in the 1-chome district in the Tokyo International Airport despite anincrease in sales from cooling business due to hot summer. Operating income decreased by ¥286 million (25.4%) to¥840 million due to increase in expenses such as gas fee.
(iii) Waterworks & Drainage Management and Other BusinessNet sales in Waterworks & Drainage Management and Other Business decreased by ¥451 million (15.4%) from theprevious fiscal year to ¥2,469 million as a result of expiration of the waterworks & drainage management contract
with the New Chitose Airport and the change in contract forms with the Osaka International Airport from thewaterworks & drainage management service to maintenance management service, but operating income increased ¥5
million (2.7%) to ¥177 million as expenses such as water charge and land rent also decreased.
Forecast for the fiscal year ending March 31, 2014
By increasing sales through improvement in occupancy rate and acquisition of new customers and cutting back on
costs through operation improvement, the forecast for the fiscal year ending March 31, 2014 is net sales of ¥21,170
million (up 0.5% from the previous fiscal year), operating income of ¥3,380 million (up 0.5%), ordinary income of¥3,130 million (down 10.3%), and net income of ¥1,730 million (down 2.9%).
(2) Analysis of Financial Position(i) Assets, liabilities and net assets- 3 -Total assets as of March 31, 2013 amounted to ¥73,317 million, a decrease by ¥1,547 million compared toMarch 31, 2012, mainly due to a decrease in noncurrent assets from depreciation and a decrease in cash anddeposits from contractual repayment of loans payable.
Liabilities decreased by ¥1,300 million from March 31, 2012 to ¥26,291 million, mainly because a decrease fromcontractual repayment of long-term loans payable exceeded an increase in accounts payable due to increased
consumption tax payable and an increase in provision for removal cost.
Net assets decreased by ¥247 million compared to March 31, 2012 to ¥47,026 million, mainly because retained
earnings decreased due to dividends payment and deconsolidation of a consolidated subsidiary despite an increase fromnet income for the year.
As a result, equity ratio as of March 31, 2013 increased by 0.8 points to 62.2% compared to March 31, 2012.
(ii) Cash Flows
Cash and cash equivalents (“cash”) as of March 31, 2013 amounted to ¥2,737 million, a decrease of ¥2,417 million(46.9%) from March 31, 2012. Cash flows from each activity for the year ended March 31, 2013 and their significant
factors are as follows:(Cash flows from operating activities)
Net cash provided by operating activities was ¥5,522 million (previous fiscal year: ¥2,861 million). This figure
was obtained as income before income taxes and minority interests adjusted with non-cash items such as
depreciation and trade receivables.
(Cash flows from investing activities)
Net cash used in investing activities was ¥3,833 million (previous fiscal year: ¥4,699 million), mainly attributableto purchase of noncurrent assets.
(Cash flows from financing activities)
Net cash used in financing activities was ¥3,516 million (previous fiscal year: ¥3,117 million provided), mainly
attributable to repayment of loans.
(Reference) Cash Flow Indicators
FY2011/3

FY2012/3

FY2013/3

Equity ratio (%)

61.2

61.4

62.2

Equity ratio at market value (%)

25.4

26.8

44.0

Debt repayment period (years)

1.8

6.3

2.9

Interest coverage ratio (times)

32.0

10.2

19.4

Equity ratio: Equity capital / Total assets
Equity ratio at market value: Market capitalization / Total assets
Debt repayment period: Interest-bearing debt / Operating cash flows
Interest coverage ratio: Operating cash flows / Interest expense(Notes)1. All indicators are calculated using financial figures on a consolidated basis.
2. Interest-bearing debt includes all debt recorded on the consolidated balance sheets on which interest ispaid.
3. Operating cash flows and interest expense are based on “Cash flows from operating activities” and“Interest paid” presented on the consolidated statement of cash flows.

(3) Basic Policy Regarding Distribution of Earnings and Dividends for the Year Ended March 31, 2013 and the YearEnding March 31, 2014
The Real Estate Business, the Company’s primary business, requires large amounts of funds for construction and purchaseof facilities. Also business planning based on a long-term point of view, such as coordinating with the airport project of the- 4 -government, is essential in our business operation. Accordingly, we must plan distribution of earnings taking into
consideration maintenance of management base and enhancement of financial strength.
As for internal reserves, we intend to use it for capital investment aimed at future business development andimprovement of business performance.
Our dividend policy is to stably return profits to shareholders based on the comprehensive consideration over the current
and future performance. Based on the above policy, the dividend for the year ended March 31, 2013 is expected to be ¥12
per share (including interim dividend of ¥6 per share). The dividend for the year ending March 31, 2014 is also expected tobe ¥12 per share (including interim dividend of ¥6 per share).

- 5 -2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)
FY3/12(As of March 31, 2012)

FY3/13(As of March 31, 2013)

AssetsCurrent assets
Cash and deposits

2,855,193

1,937,693

Notes and accounts receivable-trade

1,409,289

1,104,213

920,135

1,941,007

Merchandise and finished goods

5,358

－

Raw materials and supplies

44,437

46,175

Lease investment assets

94,763

220,8422,299,417

799,712636,270

456,394

8,264,862

6,506,036

155,261,308

151,754,993(104,940,191)(104,023,457)

Buildings and structures, net

50,321,117

47,731,536

Machinery, equipment and vehicles

17,452,165

16,981,430(14,340,614)(13,855,688)

Deferred tax assets
Short-term loans receivable
OthersTotal current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss

Accumulated depreciation

3,111,551

3,125,742

Tools, furniture and fixtures

419,641

389,272

Accumulated depreciation(368,849)(351,988)

50,79237,284

8,038,134

8,627,706

139,657

1,502,063

61,661,251

61,024,331

131,425

96,114

2,508,437

3,490,582

7,596

6,266

1,962,805

1,801,151

Others366,259

422,885

Allowance for doubtful accounts(38,233)(30,600)

Total investments and other assets

4,806,864

5,690,284

Total noncurrent assets

66,599,540

66,810,729

74,864,402

73,316,765

Machinery, equipment and vehicles, net

Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets

Total assets- 6 -(Thousands of yen)
FY3/12(As of March 31, 2012)

FY3/13(As of March 31, 2013)

Liabilities
Current liabilities
Notes and accounts payable-trade

1,756,444

1,257,057

Short-term loans payable

4,963,532

4,247,722

Accounts payable

162,917715,383

Income taxes payable

256,940

478,046

Accrued expenses

171,416

153,850

Unearned revenue

763,680

813,465

Provision for bonuses

119,239

120,200

Provision for directors’ bonuses

21,03821,038Provision for removal cost of property, plant and equipment

31,801

258,964

Others966,624

968,940

9,213,631

9,034,665

Long-term loans payable

13,092,862

11,645,140

Long-term guarantee deposited

4,606,985

5,012,653

Long-term accounts payable-facilities

359,471308,118

Provision for retirement benefits

148,425

73,676

Provision for directors' retirement benefits

169,454

216,364

18,377,197

17,255,951

27,590,828

26,290,616

6,826,100

6,826,100

Total current liabilities
Noncurrent liabilities

Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus

6,982,921

6,982,921

Retained earnings

33,156,964

32,746,818

Treasury stock(1,561,558)(1,561,637)

Total shareholders’ equity

45,404,427

44,994,202

Valuation difference on available-for-sale securities

553,678

613,054

Total accumulated other comprehensive income

553,678

613,054

Minority interests

1,315,469

1,418,893

Total net assets

47,273,574

47,026,149

74,864,402

73,316,765

Accumulated other comprehensive income

Total liabilities and net assets- 7 -(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Thousands of yen)
FY3/12(April 1, 2011 –March 31, 2012)

FY3/13(April 1, 2012 –March 31, 2013)

Net sales

20,805,558

21,067,691

Cost of sales

16,457,585

16,221,265

Gross profit

4,347,973

4,846,426

Selling, general, and administrative expenses
Directors' compensations

214,182

249,056

Salaries and bonuses

515,373

497,157

Provision for bonuses

71,242

67,898Provision for directors' bonuses

21,03821,038Transportation and communication expenses

79,35981,838Depreciation

37,15435,385

Taxes and dues

77,82470,045

OthersTotal selling, general, and administrative expenses
Operating income

561,066

461,457

1,577,238

1,483,874

2,770,735

3,362,552

77

419

Non-operating income
Interest income
Dividends income

74,481

354,521

Commission fee

115,841

137,172

Gain on investments in silent partnership

24,50428,477

Others79,154113,994

Total non-operating income

294,057

634,583

Non-operating expenses
Interest expenses

287,707274,107

Removal cost of property, plant and equipment

60,080232,357

Others5,617

536

Total non-operating expenses
Ordinary income

353,404

507,000

2,711,388

3,490,135－

53,928Extraordinary income
Compensation for remaining book value
Gain on sales of noncurrent assets
Insurance income
OthersTotal extraordinary income- 8 -1,128,518－

64,181

－

1,000

－

1,193,699

53,928(Thousands of yen)
FY3/12(April 1, 2011 –March 31, 2012)

FY3/13(April 1, 2012 –March 31, 2013)

Loss on retirement of noncurrent assets

172,340

591,086

Loss on valuation of investment securities

2,608

－

Extraordinary loss

Loss on disaster
OthersTotal extraordinary loss

159,380

－

9,169

3,496

343,497594,582

Income before income taxes

3,561,590

2,949,481

Income taxes

1,051,885

1,023,800

627,826

2,694

Total income taxes

1,679,711

1,026,494

Income before minority interests

1,881,879

1,922,987

152,997

141,752

1,728,882

1,781,235

Income taxes - deferred

Minority interests in income
Net income- 9 -(Consolidated statements of comprehensive income)(Thousands of yen)
FY3/12(April 1, 2011 –March 31, 2012)

FY3/13(April 1, 2012 –March 31, 2013)

1,881,879

1,922,987

Valuation difference on available-for-sale securities

103,50959,376

Total other comprehensive income

103,50959,376

1,985,388

1,982,363

Comprehensive income attributable to owners of the parent

1,832,391

1,840,611

Comprehensive income attributable to minority interests

152,997

141,752

Income before minority interests
Other comprehensive income

Comprehensive income
Comprehensive income attributable to- 10 -

(3) Consolidated Statements of Changes in Net Assets(Thousands of yen)
FY3/12(April 1, 2011 –March 31, 2012)

FY3/13(April 1, 2012 –March 31, 2013)

Balance at the beginning of current period

6,826,100

6,826,100

Balance at the end of current period

6,826,100

6,826,100

6,982,939

6,982,921(18)－

Shareholders’ equity
Capital stock

Capital surplus
Balance at the beginning of current period
Changes of items during the period
Disposal of treasury stock

(18)

－

6,982,921

6,982,921

31,996,373

33,156,964

Dividends from surplus(568,291)(619,950)

Net income

Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period

1,728,882

1,781,235

Change of scope of consolidation－(1,571,700)

Other

－

269

Total changes of items during the period

1,160,591(410,146)

Balance at the end of current period

33,156,964

32,746,818(1,561,412)(1,561, 558)

Purchase of treasury stock

(196)

(79)

Disposal of treasury stock

50－

Treasury stock
Balance at the beginning of current period
Changes of items during the period

(146)

(79)

(1,561,558)(1,561, 637)

44,244,000

45,404,427

Dividends from surplus(568,291)(619,950)

Net income

Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the beginning of current period
Changes of items during the period

1,728,882

1,781,235

Purchase of treasury stock

(196)

(79)

Disposal of treasury stock

32－

Change of scope of consolidation－(1,571,700)

Other

－

269

Total changes of items during the period

1,160,427(410,225)

Balance at the end of current period

45,404,427

44,994,202- 11 -

(Thousands of yen)
FY3/12(April 1, 2011 –March 31, 2012)

FY3/13(April 1, 2012 –March 31, 2013)

450,169

553,678

Net changes of items other than shareholders' equity

103,50959,376

Total changes of items during the period

103,50959,376553,678

613,054450,169

553,678

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the beginning of current period
Changes of items during the period

Balance at the end of current period
Total accumulated other comprehensive income
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity

103,50959,376

Total changes of items during the period

103,50959,376553,678

613,054

1,465,760

1,315,469(150,291)

103,424

Balance at the end of current period
Minority interests
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period(150,291)

103,424

1,315,469

1,418,893

46,159,929

47,273,574

Dividends from surplus(568,291)(619,950)

Net income

Balance at the end of current period
Total net assets
Balance at the beginning of current period
Changes of items during the period

1,728,882

1,781,235

Purchase of treasury stock

(196)

(79)

Disposal of treasury stock

32－

Change of scope of consolidation－(1,571,700)

Other

－

269

Net changes of items other than shareholders' equity(46,782)

162,800

Total changes of items during the period

1,113,645(247,425)

47,273,574

47,026,149

Balance at the end of current period- 12 -

(4) Consolidated Statements of Cash Flows(Thousands of yen)
FY3/12(April 1, 2011 –March 31, 2012)

FY3/13(April 1, 2012 –March 31, 2013)

3,561,590
3,381,930

2,949,481
3,222,352

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization

Increase (decrease) in provision for removal cost of property,
plant and equipment

31,801

227,163

Increase (decrease) in provision for directors' retirement
benefits(2,109)(74,749)(113,393)

46,910

Increase (decrease) in provision for bonuses(10,431)

961

Increase (decrease) in provision for directors’ bonuses(2,362)

Increase (decrease) in allowance for doubtful accounts

5,433

－
(7,633)

Interest and dividend income(74,558)(354,940)

Interest expenses

287,707274,107

Loss on disposal of property, plant and equipment

172,340

591,086(1,128,518)－
0Increase (decrease) in provision for retirement benefits

Loss (gain) on sales of property, plant and equipment
Loss (gain) on sales of investment securities(0)

Loss (gain) on valuation of investment securities

2,608

Decrease (increase) in notes and accounts receivable
Decrease (increase) in inventories

703,622－304,089

220

3,621

Net decrease (increase) in lease receivables and investment assets

58,704(1,020,872)

Increase (decrease) in notes and accounts payable

703,916(498,460)

Increase (decrease) in unearned revenue(40,756)

49,785

Increase (decrease) in accrued expenses(1,207,373)(7,675)(175,338)

329,167

Increase (decrease) in accrued consumption taxes
Decrease (increase) in other assets(9,925)167,521(1,329,845)

53,969

Increase (decrease) in asset retirement obligations(32,280)－

Subtotal

4,782,983

6,255,883

Interest and dividends received

74,558(279,061)

354,940(284,018)

Increase (decrease) in other liabilities

Interest paid
Income taxes paid

(1,717,679)(805,004)

Net cash provided by operating activities

2,860,801

5,521,801－
0(789,889)

Purchase of noncurrent assets(7,654,100)(3,044,105)

Proceeds from sales of noncurrent assets

2,960,588

Cash flows from investing activities
Purchase of short-term investment securities
Proceeds from sales of short-term investment securities

0

Collection of long-term loans receivable

1,331

－
1,330

Fulfillment of asset retirement obligations(7,250)－(4,699,431)(3,832,664)

Net cash used in investing activities- 13 -

(Thousands of yen)
FY3/12(April 1, 2011 –March 31, 2012)

FY3/13(April 1, 2012 –March 31, 2013)

Increase in short-term loans payable

4,000,000

1,950,000

Decrease in short-term loans payable(5,400,000)(1,950,000)

Proceeds from long-term debt

10,248,000

1,700,000

Payments of long-term debt

Cash flows from financing activities(4,745,632)(4,963,532)

Proceeds from guarantee deposits received

609,448

696,596

Repayments of guarantee deposits received(723,592)(291,124)

(196)

(79)

32

－

Payment of cash dividends(567,863)(619,228)

Purchase of treasury stock of subsidiaries(303,287)－

Purchase of treasury stock
Proceeds from sales of treasury stock－(38,329)

3,116,910(3,515,696)

Net increase (decrease) in cash and cash equivalents

1,278,280(1,826,559)

Cash and cash equivalents at beginning of period

3,876,330

5,154,610－(590,646)

5,154,610

2,737,405

Cash dividends paid to minority shareholders
Net cash used in financing activities

Decrease in cash and cash equivalents resulting from exclusionof subsidiaries from consolidation

Cash and cash equivalents at end of period- 14 -

(Segment Information)a. Segment information
1. Overview of reportable segments
The reportable segments of the Company are units for which separate financial information is available and whose operating
results are regularly reviewed by the Board of Directors in order to decide how to allocate management resources andevaluate their performances.
The Company’s head office develops comprehensive business strategies of each segment and pursue business activities.
The Company is, therefore, composed of three business segments with different services determined by the head office asfollows: “Real Estate Business,” “District Heating & Cooling Business”, and “Waterworks & Drainage Management andOther Business.”“Real Estate Business” leases office buildings, “District Heating & Cooling Business” supplies cooling and heating
services, and “Waterworks & Drainage Management and Other Business” operate and manage waterworks, drainage, andshared telecommunications network business.
2. Method of calculations of sales, profit (loss), assets, liabilities, and other items by reportable segments
Accounting treatments applied to reportable segments are, in general, consistent with those described in “Significant Basis for
Preparation of Consolidated Financial Statements.”
Inventories are valued at amount before write-off of book value to reflect decline in profitability.
Segment income (loss) is based on operating income (loss).
Intersegment sales and transfers are based on prevailing market price.
3. Sales, profit (loss), assets, liabilities, and other items by reportable segments
Fiscal year ended March 2012 (April 1, 2011– March 31, 2012)(Thousands of yen)
Reported segment
Carrying amount on
consolidated
statements of income

Real EstateBusiness

District Heating& Cooling
Business

Waterworks &Drainage
Management
and OtherBusiness

Net sales to outside
customers
Inter-segment
Net sales/transfers

13,528,225

4,357,732

2,919,601

20,805,558－

20,805,558－

986,037

247,559

1,233,596（1,233,596）

－

Total

13,528,225

5,343,769

3,167,160

22,039,154（1,233,596）

20,805,558

Segment income

1,472,679

1,125,378

172,6782,770,735－

2,770,735

Segment assets

55,235,882

7,213,534

668,786

63,118,202

11,746,200

74,864,402

Segment liabilities

21,229,954

3,508,001

167,905

24,905,860

2,684,968

27,590,828

2,543,213

744,91456,6503,344,776

37,154

3,381,930

6,889,249

272,826

3,784

7,165,860

10,967

7,176,827

Adjustments
Total

Note 1

Note 2

Net sales

Other items
Depreciation andamortization
Increase in property, plantand equipment andintangible assets(Notes)1. Adjustments represent elimination of intersegment transactions.
2. Segment income refers to operating income.
3. Change in accounting policy
Effective April 1, 2011, the depreciation method of buildings was changed from the declining balance method to the straightline method.
The reason of this change was to match the expenses and earnings more properly by recognizing recovery of invested capital
evenly as maintenance and repair costs of buildings incur regularly every period. Another reason was to prepare for the future- 15 -

change in accounting standards. As a result of this change, depreciation decreased ¥1,532,053 thousand in “Real EstateBusiness,” ¥3,327 thousand in “District Heating & Cooling Business,” and ¥762 thousand in “Waterworks & Drainage
Management and Other Business,” and their segment income for the year ended March 31, 2012 increased by an equivalentamount.

Fiscal year ended March 2013 (April 1, 2012– March 31, 2013)(Thousands of yen)
Reported segment

Real EstateBusiness

Waterworks &District Heating
Drainage& Cooling
Management
Businessand OtherBusiness

Adjustments
Total

Note 1

Carrying amount on
consolidated
statements of income
Note 2

Net sales
Net sales to outside
customers

14,354,504

4,244,417

2,468,770

21,067,691－

21,067,691

Inter-segment
Net sales/transfers－

706,439

267,025

973,464（973,464）－

14,354,504

4,950,856

2,735,795

22,041,155（973,464）

21,067,691

Segment income

2,345,433

839,788

177,331

3,362,552－

3,362,552

Segment assets

54,427,903

7,402,792

626,999

62,457,694

10,859,071

73,316,765

Segment liabilities

20,322,792

2,953,174

147,993

23,423,959

2,866,657

26,290,616

2,571,908

565,081

49,9783,186,967

35,385

3,222,352

2,329,468

826,562

7,188

3,163,218

3,257

3,166,475

Total

Other items
Depreciation andamortization
Increase in property, plantand equipment andintangible assets(Notes)1. Adjustments represent elimination of intersegment transactions.
2. Segment income refers to operating income.
3. Change in accounting policy
Following the revision of the Corporate Tax Law of Japan, the Company changed the depreciation method for property, plantand equipment acquired after April 1, 2012 to the method under the revised Corporate Tax Law of Japan from April 1, 2012.
The impact of this change is insignificant.

- 16 -