Consolidated Financial Results
for the First Quarter of the Fiscal Year 2021
Ending March 31, 2022
[Japanese GAAP]
August 6, 2021
Company name: JAMCO Corporation
Stock exchange listing: Tokyo Stock Exchange
Stock Exchange Code: 7408
URL: https://www.jamco.co.jp/
Representative: Harutoshi Okita, President & CEO
Contact: Kentaro Goto, Director & Managing Executive Officer
Phone: +81-42-503-9145
The date of filing quarterly securities report: August 10, 2021
The start date of payout of dividend: —Availability of supplementary briefing material on quarterly financial results: None
Schedule of quarterly financial results briefing session: None

(Amounts are rounded down to the nearest million yen.)
1. Consolidated Operating Results for the First Quarter of the Fiscal Year 2021 (from April 1, 2021 to June 30,
2021)(1) Consolidated Operating Results(%: Changes from the previous corresponding period)
Net sales

Operating income

Net income attributable
to shareholders ofparent company

Ordinary income

For the first quarter
Million yen%
Million yen%
Million yen%
ofFiscal year 2021
10,542(15.5)(113)(223)
Fiscal year 2020
12,475(33.5)(2,099)(2,433)(Note) Comprehensive income: The first quarter of fiscal year 2021: ¥16 million [-%]
The first quarter of fiscal year 2020: ¥(1,872) million [-%]Net income per share
For the first quarterof
Fiscal year 2021
Fiscal year 2020

Diluted net income
per share

Yen

Yen

(0.07)(68.29)-(2) Consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

As of June 30, 2021
95,460
As of March 31, 2021
101,236(Reference) Equity: As of June 30, 2021: ¥14,602 million
As of March 31, 2021: ¥16,218 million

14,90016,517

Equity ratio
%

15.3
16.0

Million yen%(1)(1,831)-

2. Dividend distribution

Dividend distribution per share
1stquarter-end

2ndquarter-end
Yen

3rd
quarter-end
Yen

Year-end
Yen

Total
Yen

Fiscal year 2020
0.00
Fiscal year 2021
Fiscal year 2021
0.00
(Planned)(Note) Revision to the plan of dividend distribution announced most recently: None

Yen

0.00

0.00

0.00

0.00

3. Consolidated Financial Results Forecast for the Fiscal Year 2021 (from April 1, 2021 to March 31, 2022)(%: Changes from the previous fiscal year)
Net income
attributable to
Net income
Net sales
Operating income Ordinary income
shareholders ofper share
parent company
Million yen

Full year%

Million yen%

Million yen%

Million yen%

Yen

43,500 (13.1)(3,980)-(4,360)-(3,120)-(116.31)(Note) Revision to the forecast of consolidated financial results announced most recently: None
* Notes:(1) Changes in significant subsidiaries during this quarter of the fiscal year 2021: None
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Number of common shares issued
1) Number of common shares outstanding (including the number of treasury stock):
As of June 30, 2021: 26,863,974 shares
As of March 31, 2021: 26,863,974 shares
2) Number of treasury stock:
As of June 30, 2021: 38,964 shares
As of March 31, 2021: 38,964 shares
3) Average number of common shares outstanding:
1st quarter of FY 2021: 26,825,010 shares
1st quarter of FY 2020: 26,825,042 shares

*Notes:*1. This document is an English translation of a statement written initially in Japanese. The Japanese original
document should be considered as the primary version.
*2. These quarterly financial results are outside the scope of quarterly review by certified public accountants or audit
firms.
*3. Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other statements herein are based on information currently available to the Company
and certain premises that the Company deems to be reasonable. Actual results may differ significantly from these
forecasts due to a wide range of factors.

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review........................ 2(1) Explanation of Operating Results ................................................................................................. 2(2) Explanation of Financial Position................................................................................................. 5(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information. 5
2. Quarterly Consolidated Financial Statements and Primary Notes...................................................... 6(1) Quarterly Consolidated Balance Sheets ........................................................................................ 6(2) Quarterly Consolidated Statements of Income and Comprehensive Income .................................. 8
Quarterly Consolidated Statements of Income.............................................................................. 8
Quarterly Consolidated Statements of Comprehensive Income..................................................... 9(3) Notes to Quarterly Consolidated Financial Statements................................................................ 10(Notes on going concern assumption) .................................................................................... 10(Notes in the case of significant changes in shareholders’ equity) .......................................... 10(Changes in accounting policies) ........................................................................................... 10(Additional information)........................................................................................................ 11(Quarterly Consolidated Statements of Income)..................................................................... 11(Segment information, etc.) ................................................................................................... 12
3. Others............................................................................................................................................ 14
Significant Events Regarding Going Concern Assumption..................................................... 141

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the first quarter of FY 2021, the world economy remained in a challenging situation due to restrictions
on movement of people and other measures amid the global spread of COVID-19. With the progress of COVID19 vaccination, however, economies in some countries showed signs of recovery. The dollar-yen exchange rate
moved within the range of ¥107 to ¥111 per US$1.
In the air transportation industry, while demand for domestic flights is recovering with COVID-19 vaccination
ramping up, demand for international flights continues to face a challenging situation. Airlines carried on efforts
to reduce costs, though some began ordering aircraft and increasing staff size in anticipation of a recovery indemand for air transportation. Aircraft manufacturers saw a rise in orders for certain models against the backdrop
of a gradual recovery in air transportation demand, especially for domestic flights.
In the situation in which the end of the COVID-19 pandemic remained uncertain, the Group promoted
business process reforms and measures to enhance the efficiency of its production system on a company-widelevel in preparation for a future recovery in demand for air transportation, aiming to improve quality andprofitability while enhancing the efficiency of its management by reducing cost, limiting investment, andreducing inventory, under the assumption that the current harsh business environment would continue for sometime. In addition, we thoroughly enforced COVID-19 countermeasures while working to reduce physical contact
between employees through remote work, shift work, and the dispersion of work areas at the workplace, andflexibly responded to the drop in workload through measures such as temporary leave of employees andsecondment to companies outside the Group.
In the aircraft interiors business and the aircraft seat business, we redoubled our efforts to enhance theefficiency of the production system and reduce the cost of sales. In the aircraft interiors business, we also worked
to develop products to ensure a clean and hygienic cabin in order to relieve the anxiety felt by passengers onboard.
In the aircraft seat business, we focused on deploying our highly profitable Venture business class seats in otheraircraft models to acquire more orders.
The amount of orders received, which had been stagnant due to a sharp drop in air transportation demandcaused by the COVID-19 pandemic, recorded an increase compared to the same period of the previous fiscal
year. This was because, as the effectiveness of vaccination was confirmed, orders from airlines increased withthe expectation that the spread of COVID-19 would subside.
In the aircraft components business, we took initiatives to improve productivity, while proceeding with thedevelopment of lightweight aircraft components using thermoplastic CFRP.
In the aircraft maintenance business, we aimed to establish a business base capable of generating stable profits
by continuing with initiatives to ensure flight safety and enhance quality, while also endeavoring to acquire orders
for aircraft maintenance for airlines and government and municipal offices.
As a result, on a consolidated basis, during the first quarter of FY 2021, the Company posted net sales of¥10,542 million (down ¥1,933 million compared to the same period of the previous fiscal year), operating lossof ¥113 million (an operating loss of ¥2,099 million in the same period of the previous fiscal year), ordinary lossof ¥223 million (an ordinary loss of ¥2,433 million in the same period of the previous fiscal year), and net loss
attributable to shareholders of parent company of ¥1 million (a net loss attributable to shareholders of parent
company of ¥1,831 million in the same period of the previous fiscal year).
Provision for loss on construction contracts of ¥4,586 million for construction to be completed in or after thequarterly second quarter of FY 2021 was recognized as of June 30, 2021. The impact of this provision for loss
on construction contracts on income (loss) for the first quarter of FY 2021 was an increase of ¥990 million incost of sales (provision for loss on construction contracts as of April 1, 2021 was ¥3,596 million).

2

Selling, general and administrative expenses, non-operating income (expenses), and extraordinary income(loss) are as follows:
Selling, general and administrative expenses were ¥1,765 million (a decrease of ¥27 million compared to thesame period of the previous fiscal year). This was attributable to decreases in personnel expenses, warranty
expenses, sales commissions, and other items, which more than offset an increase in experimentation and researchexpenses stemming primarily from the development of the Venture business class seats for other aircraft models.
In terms of non-operating income (expenses), an expense of ¥110 million was reported due mainly to anincrease in compensation expenses, despite a rise in foreign exchange gains resulting from the depreciation of
the yen in the foreign exchange market from the end of the previous fiscal year (an expense of ¥333 million in
the same period of the previous fiscal year).
As for extraordinary income (loss), an income of ¥12 million was reported (a loss of ¥315 million in the same
period of the previous fiscal year), owing principally to ¥286 million recognized in subsidy income, such as
subsidies for employment adjustment due to the temporary leave of employees. This more than offset ¥99 million
recognized in loss on liquidation of business, which comprised restoration and other costs associated with thereorganization of production bases, and ¥157 million recognized in loss related to COVID-19, which consistedof running costs including fixed costs resulting from the temporary leave of employees.

3Business performance by segment is as follows.
[Aircraft Interiors Business]
In the aircraft interiors business, net sales decreased from the same period of the previous fiscal year, largely
because shipments of galleys and lavatories decreased as a result of aircraft manufacturers being forced to further
reduce production and change production schedules due to the impact of the spread of COVID-19. Nevertheless,an ordinary income was reported primarily because the efforts to reduce cost of sales bore fruit and additionalsales resulted from specification change requests from customers to aircraft interiors in certain programs.
As a result, the aircraft interiors business posted net sales of ¥7,784 million (down ¥849 million compared tothe same period of the previous fiscal year) and ordinary income of ¥479 million (ordinary loss of ¥1,367 million
in the same period of the previous fiscal year).
[Aircraft Seat Business]
In the aircraft seat business, net sales decreased from the same period of the previous fiscal year, chiefly on
account of changes to the delivery dates made by customers as a result of the impact of the spread of COVID-19.
However, whereas an ordinary loss was reported due mainly to the decrease in net sales, the loss contracted
compared to the same period of the previous fiscal year as the efforts to reduce cost of sales yielded positive
results and the shipments of unprofitable custom-made products declined.
As a result, the aircraft seat business posted net sales of ¥564 million (down ¥1,346 million compared to thesame period of the previous fiscal year) and ordinary loss of ¥721 million (ordinary loss of ¥927 million in thesame period of the previous fiscal year).
[Aircraft Components Business]
In the aircraft components business, net sales decreased from the same period of the previous fiscal year due
in part to the postponement of shipments of heat exchangers and other equipment mainly related to defense
contracts to the quarterly second quarter of FY 2021 or later. Meanwhile, an ordinary loss was reported due
mainly to the decrease in net sales.
As a result, the aircraft components business posted net sales of ¥759 million (down ¥65 million compared tothe same period of the previous fiscal year) and ordinary loss of ¥106 million (ordinary loss of ¥68 million in thesame period of the previous fiscal year).
[Aircraft Maintenance Business]
In the aircraft maintenance business, net sales increased from the same period of the previous fiscal year as
the number of completed construction contracts rose for certain programs in aircraft maintenance. Meanwhile,
an ordinary income was reported due mainly to the increase in net sales.
As a result, the aircraft maintenance business posted net sales of ¥1,433 million (up ¥328 million comparedto the same period of the previous fiscal year) and ordinary income of ¥135 million (ordinary loss of ¥69 million
in the same period of the previous fiscal year).
[Others]
In the Others segment, which includes the businesses of the consolidated subsidiary Orange JAMCO
Corporation and consists chiefly of inter-segment transactions, including assistance work in the aircraft interiors
business, an ordinary loss was reported due mainly to a decline in workloads resulting from the closure of the
production base in Tachikawa.
As a result, the Others segment posted net sales of ¥0 million (¥0 million in the same period of the previous
fiscal year) and ordinary loss of ¥10 million (ordinary loss of ¥0 million in the same period of the previous fiscal
year).

4

(2) Explanation of Financial Position[Assets, liabilities and net assets]
Total assets as of June 30, 2021 amounted to ¥95,460 million, down ¥5,776 million from the end of theprevious fiscal year. Of such, total current assets decreased by ¥5,582 million from the end of the previous fiscal
year, due mainly to a decrease in work in process (down ¥5,871 million compared to the end of the previous
fiscal year) and a decrease in raw materials and supplies (down ¥1,175 million compared to the end of theprevious fiscal year), despite an increase in cash and deposits (up ¥1,228 million compared to the end of theprevious fiscal year). Total non-current assets decreased by ¥194 million from the end of the previous fiscal year
due to a decrease in property, plant and equipment (down ¥110 million compared to the end of the previous fiscal
year) and a decrease in intangible assets (down ¥141 million compared to the end of the previous fiscal year) as
a result of relatively limited investment for the quarterly first quarter of FY 2021. Total liabilities amounted to¥80,559 million, down ¥4,159 million from the end of the previous fiscal year. This was attributable primarily toa decrease in short-term loans payable (down ¥2,113 million compared to the end of the previous fiscal year), a
decrease in advances received (down ¥1,218 million compared to the end of the previous fiscal year), and adecrease in electronically recorded obligations – operating (down ¥1,182 million compared to the end of theprevious fiscal year).
Total net assets amounted to ¥14,900 million, down ¥1,617 million from the end of the previous fiscal year.
This was due primarily to a decrease in retained earnings as a result of the application of the Revenue Recognition
Accounting Standard, etc. As a result, the equity ratio stood at 15.3%.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
The Group’s operating results for the first quarter of FY 2021 increased in terms of income compared to theconsolidated financial results forecast announced on May 11, 2021. This was due to the concentration of
additional sales involving changes in customer specifications in the aircraft interiors business in the quarterly
first quarter of FY 2021 and the depreciation of the yen in the foreign exchange market.
The consolidated financial results forecast for FY 2021 remains unchanged as the Group assumes that theuncertain business environment will continue for the time being due to the spread of COVID-19 (and its variants)
and the announcements of production adjustments by some aircraft manufacturers.
The exchange rate assumed for the consolidated financial results forecast remains unchanged from ¥103 per
US$1 at this time.

5

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Thousand yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Advances received
Accrued expense-salary
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Liability for employee retirement benefits
Provision for loss on compensation
Provision for product warranties
Other
Total non-current liabilities
Total liabilities

6

As of June 30, 2021

5,275,305
21,092,693

6,503,703--

20,691,972

657,983
25,880,634
20,869,999
3,268,013(111,660)
76,932,968

1,464,770
20,009,265
19,694,076
3,106,494(119,809)
71,350,473

12,782,303
1,692,365
9,829,231
24,303,899
101,236,868

12,671,678
1,550,653
9,887,340
24,109,672
95,460,145

3,726,562
3,482,624
48,118,560
1,000,000
54,034
5,516,822
276,135
4,102,485
5,095,895
71,373,119

3,729,636
2,300,234
46,005,030
1,000,000
67,154
4,298,548
607,123
4,586,054
4,929,927
67,523,708

3,000,000
6,919,824
1,452,434
1,166,789
807,220
13,346,268
84,719,388

3,000,000
6,732,039
1,231,774
1,166,789
905,605
13,036,208
80,559,917

(Thousand yen)
As of March 31, 2021
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Accumulated adjustment for employee retirement
benefits
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

7

As of June 30, 2021

5,359,893
4,318,925
6,360,683(31,205)
16,008,296

5,359,893
4,318,925
4,725,062(31,205)
14,372,675

156,385
17,776

171,723105
14,902

36,052

42,726210,214
298,969
16,517,480
101,236,868

229,457
298,095
14,900,228
95,460,145

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
First Quarter of the Fiscal Year (from April 1 to June 30)(Thousand yen)
The first quarter of FY 2020

The first quarter of FY 2021

12,475,862
12,781,694(305,832)
1,793,794(2,099,627)

10,542,386
8,889,522
1,652,864
1,765,872(113,008)

5,293
924
-

2,525
1,140
76,213

-

7,478

6,275
19,044
16,373
47,911

28,191
7,636
39,486
162,673

118,363
217,046

107,491
-

2,803

-

19,78723,543
381,544(2,433,260)

151,409
14,579273,480(223,815)

16,953
16,953286,284
1,444
287,729

25,072
307,874
332,946(2,749,253)
24,291(920,038)(895,747)(1,853,505)(21,704)

11,980157,452
6,099
99,294
274,827(210,913)
41,106(51,840)(197,608)(208,342)(2,571)(601)(1,831,801)(1,970)Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodInsurance income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodCompensation expenses
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Subsidy income
Reversal of extra retirement payments
Total extraordinary income
Extraordinary loss
Loss on disposal of non-current assets
Loss related to COVID-19
Extra retirement payments
Loss on liquidation of businessTotal extraordinary loss
Income (loss) before taxes
Income taxes – current
Income taxes – refund
Income taxes – deferred
Total income taxes
Net income (loss)
Net income (loss) attributable to non-controlling interests
Net income (loss) attributable to shareholders of parent
company

8Quarterly Consolidated Statements of Comprehensive Income
First Quarter of the Fiscal Year (from April 1 to June 30)(Thousand yen)
The first quarter of FY 2020

The first quarter of FY 2021

(1,853,505)(2,571)(2,713)(30,206)
13,724(19,196)(1,872,702)

15,338105(3,146)
6,673
18,971
16,399(1,845,954)

17,272(26,747)(873)

Net income (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Adjustment for employee retirement benefits
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to shareholders ofparent company
Comprehensive income attributable to non-controllinginterests9(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Notes in the case of significant changes in shareholders’ equity)
There is no relevant information.
(Changes in accounting policies)
The first quarter of FY 2021
(from April 1, 2021 to June 30, 2021)
The Group has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020, hereinafter referred to as the “Revenue Recognition Accounting Standard”) since the beginning of thequarterly first quarter of FY 2021, and recognizes revenue in the amount expected to be received in exchange forpromised goods or services at the time the control of those goods or services is transferred to customers. The mainchanges resulting from the application of the Revenue Recognition Accounting Standard are as follows:(1) Revenue from export transactions involving delivery of goods was previously recognized at the time of
shipment; however, revenue is recognized at the time the burden of risk is transferred to customers, inaccordance with trade terms defined mainly by Incoterms rules.
(2) Revenue from sales related to design and development was previously recognized in proportion to thenumber of aircraft for which our products are adopted; however, revenue is recognized in a lump sum
at the time of shipment of our products for the aircraft for which our products are adopted for the firsttime.
The Company has applied the Revenue Recognition Accounting Standard, etc. in accordance with thetransitional treatment as provided for in the proviso of Paragraph 84 of the Revenue Recognition AccountingStandard. The cumulative effect of retroactively applying new accounting policies prior to the beginning of thequarterly first quarter of FY 2021 is added to or deducted from retained earnings at the beginning of the quarterly
first quarter of FY 2021, and new accounting policies have been applied to the balance from the beginning of thesaid period.
As a result, for the first quarter of FY 2021, net sales decreased by ¥37,775 thousand, cost of sales decreasedby ¥5,729 thousand, and operating loss, ordinary loss, and loss before taxes each increased by ¥32,046 thousand,compared with the previous method. Retained earnings at the beginning of the period decreased by ¥1,633,650
thousand.
As a result of the application of the Revenue Recognition Accounting Standard, etc., “notes and accounts
receivable – trade,” stated under “current assets” in the consolidated balance sheets for the previous fiscal year, is
included in “notes and accounts receivable – trade, and contract assets” from the quarterly first quarter of FY
2021. The Company has made no reclassification for the previous fiscal year by using the new presentation methodin accordance with the transitional treatment as provided for in Paragraph 89-2 of the Revenue Recognition
Accounting Standard. Furthermore, the Company does not state information on the breakdown of revenue
generated from contracts with customers for the first quarter of FY 2020 in accordance with the transitional
treatment as provided for in Paragraph 28-15 of the “Accounting Standard for Quarterly Financial Reporting”(ASBJ Statement No. 12, March 31, 2020).

The first quarter of FY 2021
(from April 1, 2021 to June 30, 2021)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019, hereinafter referred to as the “Fair Value Measurement Accounting Standard”), etc. since the10beginning of the quarterly first quarter of FY 2021, applying new accounting policies defined in the Fair Value
Measurement Accounting Standard, etc. over the future in accordance with the transitional treatment as provided
for in Paragraph 19 of the Fair Value Measurement Accounting Standard and in Paragraph 44-2 of the “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). This application has no impact on
the Company’s quarterly consolidated financial statements.
(Additional information)
The first quarter of FY 2021
(from April 1, 2021 to June 30, 2021)
The Group makes accounting estimates for items including impairment loss on non-current assets andrecoverability of deferred tax assets, based on information available at the time of preparation of the quarterly
consolidated financial statements.
In making accounting estimates, the Group has formulated its sales plan with the assumption that air passenger
demand will recover to pre-COVID-19 levels in or around 2024. As for income, the Group has made accounting
estimates based on the expectation that its income will recover to the level of FY 2019, before the COVID-19
pandemic, in FY 2022 due to various measures, including business process reforms.
There are no significant changes from the content of the accounting estimates related to the COVID-19 pandemic
included in “Notes (Significant accounting estimates)” in our securities report for the previous fiscal year.
(Quarterly Consolidated Statements of Income)Subsidy income¥286,284 thousand in subsidy income, such as subsidies for employment adjustment due to the temporary leaveof employees, has been recognized under extraordinary income.
Loss related to COVID-19¥157,452 thousand in loss related to COVID-19 has been recognized under extraordinary loss for running costs,
including fixed costs resulting from the temporary leave of employees, as operations significantly declined due tothe global spread of COVID-19 and a declaration of a state of emergency issued by the government.
Loss on liquidation of business¥99,294 thousand in loss on liquidation of business has been recognized under extraordinary loss for restoration
costs involving reorganization of production bases.

11

(Segment information, etc.)[Segment information]
I. For the first quarter of FY 2020
1. Information on net sales and income (loss) by reportable segment(Thousand yen)
Aircraft
Interiors
Business
Net sales
Net sales to outside
customers
Inter-segment net sales ortransfers
Total
Segment income (loss)

Reportable segment
Aircraft
Aircraft
Aircraft Seat
Components MaintenanceBusiness
Business
Business

Total

Others(Note)

Total

8,633,879

1,911,519

824,935

1,105,527

12,475,862-

12,475,862

98,58029,47841

7,194

135,294

27,262

162,557

8,732,459(1,367,222)

1,940,998(927,983)

824,977(68,281)

1,112,722(69,564)

12,611,157(2,433,052)

27,262 12,638,419(207) (2,433,260)(Note) The Others segment includes the businesses of affiliate Orange JAMCO Corporation. Orange JAMCO
Corporation is a special-purpose subsidiary, dedicated to promoting the employment of people withdisabilities and provides assistance work in the Company’s factories, which is one of the corporate social
responsibilities.
2. Differences between the total amount of income (loss) of reportable segments and the amounts in the Quarterly
Consolidated Statement of Income and the major details of such differences(Matters relating to adjustment of differences)(Thousand yen)
IncomeAmountReportable segments total
Income of Others
Ordinary income in the Quarterly Consolidated Statement of
Income3. Matters on impairment loss on non-current assets and goodwill by reportable segment
There is no relevant information.

12(2,433,052)(207)(2,433,260)

II. For the first quarter of FY 2021
1. Information on net sales and income (loss) and information on breakdown of revenue by reportable segment(Thousand yen)
Aircraft
Interiors
Business
Net sales
Revenue generated fromcontracts with customers
Net sales to outside
customers
Inter-segment net sales ortransfers
Total
Segment income (loss)

Reportable segment
Aircraft
Aircraft
Aircraft Seat
Components MaintenanceBusiness
Business
Business

Total

Others(Note)

Total

7,784,458

564,614759,326

1,433,987

10,542,386-

10,542,386

7,784,458

564,614759,326

1,433,987

10,542,386-

10,542,386

102,269

-

241

3,356

105,867

16,106

121,974

7,886,727
479,409564,614(721,672)

759,568(106,556)

1,437,344
135,729

10,648,254(213,090)

16,106 10,664,361(10,725)(223,815)(Note) The Others segment includes the businesses of affiliate Orange JAMCO Corporation. Orange JAMCO
Corporation is a special-purpose subsidiary, dedicated to promoting the employment of people withdisabilities and provides cleaning and assistance work in the Company’s facilities, which is one of thecorporate social responsibilities.
2. Differences between the total amount of income (loss) of reportable segments and the amounts in the Quarterly
Consolidated Statement of Income and the major details of such differences(Matters relating to adjustment of differences)(Thousand yen)
IncomeReportable segments total
Income of Others
Ordinary income in the Quarterly Consolidated Statement of
IncomeAmount(213,090)(10,725)(223,815)

3. Matters on impairment loss on non-current assets and goodwill by reportable segment
There is no relevant information.
4. Changes in the measurement method for reportable segments
As stated in “Changes in accounting policies,” the Company has applied the Revenue Recognition AccountingStandard, etc. since the beginning of the quarterly first quarter of FY 2021 and changed the accounting method
for revenue recognition. The measurement method for the amounts of income (loss) by reportable segment has
been changed accordingly.
As a result, net sales of aircraft interiors business increased by ¥24,595 thousand and segment income
decreased by ¥45,193 thousand, and net sales of aircraft seat business decreased by ¥62,370 thousand, and segment
loss decreased by ¥13,147 thousand for the first quarter of FY 2021, compared with the previous method.

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3. Others
Significant Events Regarding Going Concern Assumption
The Group has suffered a significant impact from the spread of COVID-19, including a drop in sales of cabin
retrofit interiors and spare parts for airlines due to a decrease in aircraft operations, in addition to a significant
drop in shipments of interiors and seats following the reduced production and changes in production schedules
by aircraft manufacturers. Operating loss, net loss attributable to shareholders of parent company, and negative
cash flows from operating activities were recognized in the previous fiscal year, and in the first quarter of FY
2021, operating loss and net loss attributable to shareholders of parent company have been recognized. As a result,the Group understands that there are events or conditions that may cast significant doubt on going concern
assumption.
Under such an unprecedented situation, the Group has carried out a review of the production plan, reorganizedproduction bases, and is making efforts to reduce fixed costs through temporary leave of employees andsecondment to companies outside the Group and limiting investment while striving to enhance the efficiency ofits management by reducing inventories.
The Group has determined that passenger demand will recover in stages in the future, based on the demand
forecast by the International Air Transport Association. Inquiries and orders for cabin retrofit interiors and seatsfrom airlines are recovering. The Group expects that shipments of our products will increase with the recovery
in passenger demand and the Group’s operating results will recover.
In addition, by enhancing close coordination with partner financial institutions, including the main bank, theGroup has secured ongoing support such as increases in borrowing limits and the continuation of loans. As theGroup secured necessary financing limits, it has determined that there are no material uncertainties regarding
going concern assumption.

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