Consolidated Financial Results
for the Fiscal Year 2016
Ended March 31, 2017
[Japanese GAAP]May 10, 2017

Company name: JAMCO Corporation
Stock exchange listing: Tokyo Stock Exchange
Stock Exchange Code: 7408
URL: http://www.jamco.co.jp/
Representative: Harutoshi Okita, President & CEO
Contact: Toshikazu Kimura, Director & Senior Managing Executive Officer
Phone: +81-42-503-9145
Scheduled date of general meeting of shareholders held: June 28, 2017
The start date of payout of dividend: June 29, 2017
Submission date of securities report scheduled: June 28, 2017
Availability of supplementary briefing material on financial results: None
Schedule of financial results briefing session: Yes (for institutional investors)(Amounts are rounded down to the nearest million yen.)
1. Consolidated Operating Results for the Fiscal Year 2016 (from April 1, 2016 to March 31, 2017)(1) Consolidated Operating Results(%: Changes from the previous fiscal year.)Net sales

Operating income

Ordinary income

For the year ended
Million yen%
Million yen%
Million yen%
March 31, 201781,834(10.6)
2,132 (75.8)
1,285 (84.4)
March 31, 2016
91,561
19.0
8,793
29.6
8,245
5.3
(Note) Comprehensive income: Year ended March 31, 2017: ¥927 million [(80.1)%]
Year ended March 31, 2016: ¥4,653 million [(17.2)%]
Net income per
share

Diluted net
income pershare

For the year ended
Yen
March 31, 2017
37.82
March 31, 2016
192.72(Reference) Equity in earnings (losses) of affiliates:(2) Consolidated Financial Position
Total assets

Yen-

Net income attributable
to shareholders ofparent company
Million yen
%

1,014
5,169

Rate of returnon equity

Ordinary
income to total
assets%%Operatingincome to net
sales

3.7
1.4
20.2
9.2
Year ended March 31, 2017: ¥37 million
Year ended March 31, 2016: ¥43 million

Net assets

Equity ratio(80.4)
7.8

%

2.6
9.6

Net assets per share

Million yen%

Yen

As of March 31, 201792,55928,00392,28428,202As of March 31, 2016
(Reference) Equity: As of March 31, 2017: ¥27,189 million
As of March 31, 2016: ¥27,363 million

29.4
29.7

1,013.58
1,020.08

Million yen(3) Consolidated Cash Flows

For the year ended
March 31, 2017
March 31, 2016

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

2,128
4,689

(3,176)(3,857)

(587)
(242)

1,772
3,479

2. Dividend distribution
Dividend distribution per share

Fiscal year 2015
Fiscal year 2016
Fiscal year 2017
(Planned)

1st
2nd
3rd
quarter-end quarter-end quarter-end
Yen
Yen
Yen

Year-end
Yen

Dividend
Dividends toTotalpayout ratio
net assets
dividends (consolidated)(consolidated)

Total
Yen

-

0.00
0.00

-

40.00
10.00

40.00
10.00

-

0.00

-

20.00

20.00

Million yen

%

1,073
268

%

20.8
26.4

4.2
1.0

23.5

3. Consolidated Financial Results Forecast for the Fiscal Year 2017 (from April 1, 2017 to March 31, 2018)(%: indicates changes from the previous corresponding period.)
Net income
attributable to
Net income
Net sales
Operating income
Ordinary income
shareholders ofper share
parent company
2ndquarter-end
Full year

Million yen% Million yen% Million yen%

Million yen%

Yen

40,300

0.1

1,810

-

1,660

-

1,050

-

39.14

79,400(3.0)

3,800 (78.2)

3,470(169.8)

2,280

124.7

84.99

* Notes:(1) Changes in significant subsidiaries during the fiscal year 2016 (Changes in specified subsidiaries resulting inchange in scope of consolidation): None
(2) 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
(3) Number of common shares issued
1) Number of common shares outstanding (including the number of treasury stock):
As of March 31, 2017: 26,863,974 shares
As of March 31, 2016: 26,863,974 shares
2) Number of treasury stock:
As of March 31, 2017: 38,730 shares
As of March 31, 2016: 38,635 shares
3) Average number of common shares outstanding:
For the year ended March 31, 2017: 26,825,267 shares
For the year ended March 31, 2016: 26,825,392 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year 2016 (April 1, 2016 to March 31, 2017)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating income
Ordinary income
Net income
For the year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2017
68,271(13.5)
2,231 (69.2)
1,673 (74.4)
1,285 (68.9)
March 31, 2016
78,948
15.1
7,245
17.1
6,549 (14.8)
4,138 (13.1)

For the year ended
March 31, 2017
March 31, 2016

Net income
per share

Diluted net income
per share
Yen

Yen

47.92
154.29(2) Non-consolidated Financial Position
Total assets-

Net assets

Equity ratio

Net assets per share

Million yen%

Yen

As of March 31, 201777,83526,312As of March 31, 2016
72,50926,152(Reference) Equity: As of March 31, 2017: ¥26,312 million
As of March 31, 2016: ¥26,152 million

33.8
36.1

980.87974.93

Million yen*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 consolidated financial results are outside the scope of audit*3. Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking 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. For the conditions that form the premises of theforecasts, please refer to “Future Outlook” on page 5 of the Attachment.

Table of Contents
1. Overview of Business Results, etc. ................................................................................................................ 2(1) Overview of Business Results for the Fiscal Year Under Review ............................................................. 2(2) Overview of Financial Position for the Fiscal Year Under Review ............................................................ 4(3) Overview of Cash Flows for the Fiscal Year Under Review ...................................................................... 4(4) Future Outlook ........................................................................................................................................... 5
2. Basic Approach to the Selection of Accounting Standards ............................................................................. 5
3. Consolidated Financial Statements and Primary Notes .................................................................................. 6(1) Consolidated Balance Sheets ..................................................................................................................... 6(2) Consolidated Statements of Income and Comprehensive Income ............................................................. 8(3) Consolidated Statements of Changes in Equity ........................................................................................ 10(4) Consolidated Statements of Cash Flows .................................................................................................. 12(5) Notes to Consolidated Financial Statements ............................................................................................ 14(Notes on going concern assumption) ................................................................................................. 14(Changes to accounting policies) ......................................................................................................... 14(Additional information) ..................................................................................................................... 14(Segment information) ........................................................................................................................ 14(Per share information) ........................................................................................................................ 22(Significant subsequent events) ........................................................................................................... 23

1

1. Overview of Business Results, etc.
(1) Overview of Business Results for the Fiscal Year Under Review
During FY 2016, the overall global economy generally remained firm, as trends in the U.S. economy
remained steady, and the economies in Japan and the euro-zone also continued a moderate recovery, despite
signs of a slowdown of economic growth in China and the emerging countries in Asia. Meanwhile, owing tosignificant fluctuations in the foreign exchange market stemming from factors such as U.K.’s decision to exit
the EU and the result of the U.S. presidential election, unstable financial conditions persisted.
In the air transportation industry, fierce competition continued due to the rise of low-cost carriers (LCCs),
despite the growing global demand for air transportation and low crude oil prices that contributed to strong
airline earnings overall. Aircraft manufacturers are expanding the production system of new aircrafts in
response to increasing aircraft demand, and the number of aircrafts delivered to airlines remains at a high level.
As for aircraft orders received, order receipt of small passenger aircraft has been increasing with the increase ofLCCs, while order receipt of large aircraft has been decreasing compared with recent years. The policy to
reduce production of Airbus A380 and Boeing 777 was announced.
Under such circumstances, in the aircraft interiors business, the Group promoted initiatives to improve
production efficiency and reduce cost, while answering to the increase in production of interior products for
Boeing 787s. We also promoted the development of lavatories for the Boeing 777X, which is a successor to the
Boeing 777, and rear galleys for Airbus A350XWBs.
In the aircraft seat business, we began full-fledged mass production at Miyazaki JAMCO Corporation, a seatproduction plant which commenced operation in December 2015, as we pushed ahead with efforts to enhance
productivity and strengthen the supply chain.
In the aircraft components business, we promoted efforts to cut costs for cargo struts for Airbus A350XWBs,
which are new products for CFRP structure parts, while also increasing production of engine parts forcommercial aircrafts.
In the aircraft maintenance business, we continued with initiatives to ensure flight safety and enhancequality, while also making efforts to recover orders and improve productivity.
During FY 2016, net sales and income decreased from the previous fiscal year due mainly to theappreciating yen on the foreign exchange market causing a relative decrease in U.S. dollar-denominated net
sales, as well as a significant decline in net sales of galleys for which orders are directly placed by airlines, adecrease in sales of spare parts, and a drop in order receipt of aircraft maintenance work.
Provision for loss on construction contracts of ¥3,434 million for construction to be completed from thenext fiscal year was recognized at the end of FY 2016. The impact on costs for the fourth quarter of FY 2016
due to the recording of provision for loss on construction contracts increased by ¥1,363 million (provision forloss on construction contracts at the end of the third quarter of FY 2016 was ¥2,070 million), and the impact on
costs for FY 2016 increased by ¥1,606 million (provision for loss on construction contracts at the end of
FY2015 was ¥1,827 million).
As a result, during FY 2016, the Company posted net sales of ¥81,834 million (down ¥9,726 million
compared to the previous fiscal year), operating income of ¥2,132 million (down ¥6,661 million compared tothe previous fiscal year), ordinary income of ¥1,285 million (down ¥6,959 million compared to the previous
fiscal year) and net income attributable to shareholders of parent company of ¥1,014 million (down ¥4,155
million compared to the previous fiscal year).
Selling, general and administrative expenses, non-operating income/expenses and extraordinary
income/loss for the Group are as follows:
Selling, general and administrative expenses were ¥8,870 million (a decrease of ¥1,252 million comparedto the previous fiscal year) due mainly to decreases in warranty expenses and experiment and research expenses.
In terms of non-operating income/expenses, an expense of ¥846 million was reported due mainly toforeign exchange losses of ¥555 million as a result of the appreciation of the yen against the U.S. dollar
2compared to the previous fiscal year and recognition of compensation expenses of ¥128 million (an expense of¥547 million in the previous fiscal year).
As for extraordinary income/loss, an expense of ¥23 million was reported due to factors including loss on
disposal of non-current assets and head office transfer expenses (a loss of ¥14 million in the previous fiscal
year).
Business performance by segment is as follows.
[Aircraft Interiors Business] and [Aircraft Seat Business]
In the aircraft interiors business and aircraft seat business, we continued various initiatives to expand order
receipt of new products and aftermarket products in line with the business strategy of aiming at becoming a
total interior integrator of cabin interiors and equipment, while working to improve the efficiency of the
product system for interior products for newly-built aircrafts. Additionally, we are taking initiatives to establish
production sites and strengthen the supply chain with a view to developing the aircraft seat business into thefourth pillar of the aircraft interiors business.
Following the reorganization on June 28, 2016, the aircraft seat business segment was newly established bya split from the aircraft interiors business segment, which previously included the aircraft seat business.
During the fiscal year under review, although shipments of aircraft seats increased, both net sales andordinary income decreased from the previous fiscal year. This decline was attributable to factors including theappreciating yen on the foreign exchange market leading to a relative decrease in foreign currencydenominated net sales, a decrease in net sales of galleys for Boeing 777s due to the transition to the Boeing
777X under development by Boeing, and a decline in sales of spare parts, in addition to an increase in costs due
to making provision for loss on construction contracts for construction expected to incur losses from the next
fiscal year and foreign exchange losses.
As a result, the aircraft interiors business segment before reorganization, composed of the aircraft interiors
and aircraft seat businesses, posted net sales of ¥67,867 million (down ¥9,155 million compared to the previous
fiscal year) and ordinary income of ¥1,129 million (down ¥6,736 million compared to the previous fiscal year).
As for the breakdown of results of each segment, the aircraft interiors business posted net sales of ¥55,311
million and ordinary income of ¥4,676 million and the aircraft seat business posted net sales of ¥12,556 million
and ordinary loss of ¥3,547 million.
[Aircraft Components Business]
In the aircraft components business, we endeavored to expand order receipt of core products such as heatexchangers mainly for defense-related use, as well as worked to establish and improve the efficiency of the
production system mainly for CFRP structure parts and engine parts for commercial aircrafts.
During the fiscal year under review, net sales decreased as a result of factors such as a relative decrease inforeign currency-denominated net sales due to the appreciating yen on the foreign exchange market and a
decline in production volume of CFRP structure parts for the Airbus A380, despite increased production
volume due to robust order receipt of engine parts for commercial aircrafts. In addition, although we pushedahead with reducing costs associated with the new CFRP structure parts for the Airbus A350XWB, ordinary
income also decreased because of the residual effect of the loss in the first half.
As a result, the aircraft components business posted net sales of ¥6,349 million (down ¥17 million
compared to the previous fiscal year) and ordinary income of ¥96 million (down ¥118 million compared to theprevious fiscal year).
[Aircraft Maintenance Business]
In the aircraft maintenance business, we made efforts to ensure flight safety and persistently reinforce thequality assurance system, and strengthen initiatives for new high-value-added businesses.
During the fiscal year under review, net sales declined due in part to a decrease in completed construction
3compared to the previous fiscal year, when order receipt for special work and completed construction wererelatively strong. This decrease in net sales resulted in a decline in ordinary income due to a decrease inprofitability for the business as a whole.
As a result, the aircraft maintenance business posted net sales of ¥7,617 million (down ¥553 million
compared to the previous fiscal year) and ordinary income of ¥64 million (down ¥102 million compared to theprevious fiscal year).
[Others]
The Others segment includes the businesses of the consolidated subsidiaries Orange JAMCO Corporation
and JAMCO TECHNICAL CENTER Co., Ltd. As of March 31, 2016, JAMCO TECHNICAL CENTER Co.,
Ltd. was dissolved, with its liquidation completed on August 22, 2016.
As a result, the Others segment posted net sales of ¥0 million (up ¥0 million from the previous fiscal year)
and ordinary loss of ¥4 million (ordinary loss of ¥2 million in the previous fiscal year).
(2) Overview of Financial Position for the Fiscal Year Under Review
Total assets as of March 31, 2017 amounted to ¥92,559 million, up ¥275 million from the end of theprevious fiscal year. Of such, total current assets increased by ¥117 million from the end of the previous fiscal
year, due mainly to an increase in notes and accounts receivable - trade (up ¥2,925 million compared to the endof the previous fiscal year), despite a decrease in cash and deposits (down ¥1,201 million compared to the endof the previous fiscal year) and a decrease in raw materials and supplies (down ¥1,031 million compared to theend of the previous fiscal year). Total non-current assets increased by ¥158 million from the end of the previous
fiscal year as a result of promoting investment including introduction of an aircraft seat dynamic testing facility,
reinforcement of head office buildings and structures, and replacement of plant-related facilities while cuttingback on non-essential, non-urgent capital expenditures.
Total liabilities amounted to ¥64,556 million, up ¥474 million from the end of the previous fiscal year. This
was attributable primarily to an increase in provision for loss on construction contracts (up ¥1,606 million
compared to the end of the previous fiscal year), which offset the decrease in advances received (down ¥1,718
million compared to the end of the previous fiscal year), the decrease in income taxes payable (down ¥632
million compared to the end of the previous fiscal year), and the decrease in accrued expense-salary (down¥591 million compared to the end of the previous fiscal year). The decrease in notes and accounts payable trade is attributable to changing the payment method to electronically recorded obligations - operating from thefiscal year under review.
Total net assets amounted to ¥28,003 million, down ¥198 million from the end of the previous fiscal year.
This was due primarily to a decrease in retained earnings (down ¥58 million compared to the end of theprevious fiscal year), a decrease in foreign currency translation adjustment (down ¥79 million compared to theend of the previous fiscal year), and a decrease in deferred gains or losses on hedges (down ¥72 million
compared to the end of the previous fiscal year). As a result, the equity ratio stood at 29.4%.
(3) Overview of Cash Flows for the Fiscal Year Under Review
Cash and cash equivalents as of March 31, 2017 decreased by ¥1,706 million compared to the end of theprevious fiscal year, as a result of the cash flows described below.
(Cash flows from operating activities)
During FY 2016, net cash provided by operating activities decreased by ¥2,560 million compared to theprevious fiscal year, to a cash inflow of ¥2,128 million. This was mainly due to a decrease in inflows resulting
from a decrease in income before taxes, an increase in notes and accounts receivable, and a decrease inadvances received.
(Cash flows from investing activities)
During FY 2016, net cash used in investing activities decreased by ¥681 million compared to theprevious fiscal year, to a cash outflow of ¥3,176 million. This was mainly due to the postponement of non4

essential, non-urgent capital expenditure projects in an effort to cut back on expenses.
(Cash flows from financing activities)
During FY 2016, net cash used in financing activities increased by ¥345 million compared to the previous
fiscal year, to a cash outflow of ¥587 million. This was mainly because outflows from cash dividends paid andrepayments of loans payable to financial institutions exceeded the proceeds from loans payable from financial
institutions.
(4) Future Outlook
The global economy is expected to remain firm, as the economic recovery trend continues in the U.S., Japanand the euro-zone, despite concerns about a slowdown of economic growth in China and the emerging
countries in Asia. Meanwhile, as growing geopolitical risks may cause sharp fluctuations in the foreignexchange market, the outlook for the financial markets is expected to be uncertain.
In such a business environment, the Group anticipates net sales and income to decrease in the aircraftinteriors business due mainly to the effect of a decrease in order receipt resulting from the transition of order
receipt of products for conventional Boeing 777s to the Boeing 777X currently under development by Boeing,
and a drop in prices at which orders are received. As such, we will continue initiatives to cut costs, including
improvements from the product design phase.
In the aircraft seat business, we will endeavor to enhance profitability by improving production efficiency,
in addition to increasing net sales by increasing product shipments.
In the aircraft components business, we expect a decrease in production volume of CFRP structure parts for
the Airbus A380 and a decrease in order receipt of heat exchangers and other defense-related components,
despite an increase in order receipt of engine parts for commercial aircrafts. We will work to expand order
receipt of various products, while pushing ahead with initiatives such as applying CFRP molding technology tointerior products and seat products.
In the aircraft maintenance business, we will pursue new business initiatives for aircraft maintenance andactivities to win orders for equipment maintenance by setting our sights on foreign customers as well on thebasis of ensuring flight safety and enhancing quality. By doing so, we will aim at creating a new businessmodel as an MRO (Maintenance, Repair and Overhaul) provider. In the next fiscal year, defense-related order
receipt is expected to increase, and we will engage in activities to win orders and improve earnings, including
high-value-added service operations.
In light of these circumstances, our outlook of consolidated operating results for FY 2017 calls for net salesof ¥79,400 million, operating income of ¥3,800 million, ordinary income of ¥3,470 million, and net income
attributable to shareholders of parent company of ¥2,280 million. The exchange rate assumed for the outlook is¥110 to U.S.$1.

2. Basic Approach to the Selection of Accounting Standards
Taking into consideration the comparability of consolidated financial statements by term and thecomparability between companies, the Group’s policy is to prepare consolidated financial statements based onJapanese GAAP.
The Group plans to carefully consider the adoption of IFRS (International Financial Reporting Standards),
taking into account the circumstances in Japan and overseas.

5

3. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Thousand yen)
As of March 31, 2016
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Consumption taxes receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Guarantee deposits
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

6

As of March 31, 2017

3,479,003
20,232,940
580,002
22,938,144
18,691,439
1,002,592
2,470,038
3,241,917(4,501)
72,631,578

2,277,428
23,158,092
602,859
23,098,314
17,659,592
331,927
3,158,569
2,468,037(6,161)72,748,660

18,660,830(10,574,169)
8,086,660
9,246,108(7,519,796)
1,726,311
3,486,100
414,836(249,281)
165,554
296,161
5,807,229(5,071,644)
735,584
14,496,373

18,679,687(10,865,272)
7,814,415
9,993,799(7,988,486)
2,005,312
3,484,134
406,446(305,066)
101,379
115,934
6,402,945(5,567,921)
835,023
14,356,198

261,223
952,661
1,213,884

427,970
1,134,254
1,562,225

459,014125,267
108,601
3,218,451
31,167
3,942,502
19,652,760
92,284,339

480,806
98,574
98,1453,181,907
33,253
3,892,687
19,811,111
92,559,772

(Thousand yen)
As of March 31, 2016
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Lease obligations
Accrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Accrued expense-salary
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Provision for directors’ and auditors’ retirement
benefits
Provision for executive officers’ retirement benefits
Liability for employee retirement benefits
Provision for environmental measures
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
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 March 31, 201715,216,137
22,374,049
200,757
1,131,173
1,598,026
132,664
5,423,070
1,894,715
1,827,438
1,944,882
51,742,914

9,608,011
6,371,831
23,441,823
150,780
993,272
965,269
146,550
3,704,268
1,302,943
3,434,215
2,126,893
52,245,859

5,100,000
151,484

4,700,000
384,983

154,939

175,42080,8696,738,093
6,887
71,90934,923
12,339,105
64,082,020

119,7026,808,585
67,38754,293
12,310,373
64,556,232

5,359,893
4,367,993
17,684,729(30,452)
27,382,163

5,359,893
4,367,993
17,626,220(30,689)
27,323,417

87,484
214,971

106,871(72,280)
135,690(320,734)(304,154)(18,278)
838,434
28,202,319
92,284,339(133,873)
813,996
28,003,540
92,559,772

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income(Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodCommission for insurance office work
Dividend income of insurance
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Compensation expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on disposal of non-current assets
Head office transfer expenses
Other
Total extraordinary loss
Income before taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling shareholders
Net income attributable to shareholders of parent company

8

FY 2015

FY 2016(From April 1, 2015 toMarch 31, 2016)(From April 1, 2016 to
March 31, 2017)

91,561,076
72,644,200
18,916,876
10,123,232
8,793,644

81,834,495
70,832,154
11,002,340
8,870,335
2,132,004

1,540
4,166

7,567
4,445

43,92537,40016,166
7,689
102,643
29,897206,028

8,986
5,925
76,541
76,435
217,302

286,498
423,994
43,488753,980
8,245,691

309,176555,387
128,00270,797
1,063,364
1,285,942

1,774
1,774

961
4,062
5,024

15,023
1,522
16,5468,230,919
2,721,919
205,725
2,927,645
5,303,274
133,431
5,169,843

15,664
13,32028,985
1,261,982
839,058(639,641)
199,416
1,062,565
48,0601,014,504

Consolidated Statement of Comprehensive Income(Thousand yen)

Net income
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
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to shareholders ofparent company
Comprehensive income attributable to non-controllingshareholders

9

FY 2015

FY 2016(From April 1, 2015 toMarch 31, 2016)(From April 1, 2016 to
March 31, 2017)

5,303,274

1,062,565(13,315)(328,108)(301,632)

19,387(72,280)(92,534)
16,579(7,136)(5,963)(650,193)
4,653,081(134,812)
927,752

4,569,736

898,90983,344

28,843

(3) Consolidated Statement of Changes in Equity
For fiscal year 2015 (from April 1, 2015 to March 31, 2016)(Thousand yen)
Shareholders’ equity
Capital stock
Balance at the beginning of
periodChanges in items during period
Dividends of surplus
Net income attributable toshareholders of parent
company
Purchase of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at the end of period

Balance at the beginningof period

Retainedearnings

Capital surplus

5,359,893

4,367,993

Total
shareholders’equityTreasury stock

13,453,776(30,070)

23,151,592(938,889)(938,889)

5,169,843

5,169,843
(382)

(382)

-

-

4,230,953(382)

4,230,570

5,359,893

4,367,993

17,684,729(30,452)

27,382,163

Accumulated other comprehensive income
Accumulated
Valuation
Foreign
Deferred gains
adjustment for
currency
difference onor losses on
employeeavailable-fortranslation
hedgesretirement
adjustment
sale securities
benefits

Total
accumulated
othercomprehensive
income(19,101)

581,826

100,799-

500,127

Noncontrollinginterests

764,349

Changes in items during
periodDividends of surplus
Net income
attributable toshareholders ofparent company
Purchase of treasury
stock

Total net
assets24,497,768(938,889)
5,169,843(382)

Net changes of items
other thanshareholders’ equity(13,315)

Total changes of items
during period(13,315)

Balance at the end of
period87,484(285,156)(301,632)(600,105)

74,084(526,020)-(285,156)(301,632)(600,105)

74,084

3,704,550-

214,971(320,734)(18,278)

838,434

28,202,319

10

For fiscal year 2016 (from April 1, 2016 to March 31, 2017)(Thousand yen)
Shareholders’ equity
Capital stock
Balance at the beginning of
periodChanges in items during period
Dividends of surplus
Net income attributable toshareholders of parent
company
Purchase of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at the end of period

Capital surplus

5,359,893

4,367,993

Retainedearnings
17,684,729

Treasury stock(30,452)

87,484

27,382,163(1,073,013)(1,073,013)

1,014,504

1,014,504
(236)

(236)

-

-

(58,509)(236)(58,745)

5,359,893

4,367,993

17,626,220(30,689)

27,323,417

Accumulated other comprehensive income
Accumulated
Total
Valuation
Foreign
Deferred gains
adjustment for accumulateddifference on
currency
or losses on
employeeotheravailable-fortranslation
hedgesretirement
comprehensive
sale securities
adjustment
benefits
incomeBalance at the
beginning of period

Totalshareholders’equity-214,971(320,734)(18,278)

Noncontrollinginterests

838,434

Total net
assets28,202,319

Changes in items
during period(1,073,013)

Dividends of surplus
Net income
attributable toshareholders ofparent company
Purchase of treasurystock
Net changes of items
other thanshareholders’equityTotal changes of items
during period
Balance at the end of
period

1,014,504(236)

19,387(72,280)(79,280)

16,579(115,594)(24,438)(140,032)

19,387(72,280)(79,280)

16,579(115,594)(24,438)(198,778)

106,871(72,280)

135,690(304,154)(133,873)

813,996

28,003,540

11

(4) Consolidated Statement of Cash Flows(Thousand yen)

Cash flows from operating activities
Income before taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in accrued expense-salary
Increase (decrease) in liability for employee retirement
benefits
Increase (decrease) in provision for loss on construction
contracts
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sales of non-current assets
Loss (gain) on disposal of non-current assets
Loss (gain) on sales of investment securities
Other non-operating expenses (income)
Other extraordinary loss (income)Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Decrease (increase) in advances paid
Increase (decrease) in advances received
Other
SubtotalInterest and dividend income received
Interest expenses paid
Other proceeds
Other payments
Income taxes paid
Net cash provided by (used in) operating activities

12

FY 2015

FY 2016(From April 1, 2015 toMarch 31, 2016)(From April 1, 2016 to
March 31, 2017)

8,230,919
2,546,061
137,971(81,858)
135,590

1,261,982
2,473,749
1,643(591,772)(184,457)

153,812769,451

1,606,777(5,707)
286,498(206,041)(12,012)309,176
88,916(43,925)(37,400)(1,774)15,023(112,907)
1,522

(961)
15,664(4,062)30,91013,32014,390(2,948,967)(5,509,228)

614,946

1,392,883

811,962(521,563)
1,029,426
558,5048,450,779
27,572(287,566)
134,758(12,225)(3,623,597)
4,689,721

591,859(1,685,532)
1,196,188
3,890,202
31,451(282,316)
122,438(170,129)(1,462,832)
2,128,814

(Thousand yen)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Payments for transfer of business
Other payments
Other proceeds
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling shareholders
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period13

FY 2015

FY 2016(From April 1, 2015 toMarch 31, 2016)(From April 1, 2016 to
March 31, 2017)(3,035,024)
6,262(2,896)(3,184)
8,022(375,000)(465,350)
9,534(3,857,636)(2,229,298)
1,550(2,214)24,276(3,864)
3,982(988,486)
17,970(3,176,083)

42,523,522(41,802,930)
1,900,000(1,714,343)(199,982)(382)(938,791)(9,258)(242,165)

59,985,227(59,389,134)
600,000(442,248)(217,374)(236)(1,070,742)(53,281)(587,789)(161,028)(71,415)

428,891
3,050,112
3,479,003(1,706,475)
3,479,003
1,772,528

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Changes in accounting policies)
Following the revision of the Corporation Tax Act, the Company has applied the “Practical Solution on achange in depreciation method due to Tax Reform 2016” (PITF No. 32, June 17, 2016), effective from FY 2016,
and accordingly, has changed the method for the depreciation of facilities attached to buildings and structuresacquired on or after April 1, 2016 from the declining-balance method to the straight- line method.
The impact of this change on profit or loss is immaterial.
(Additional information)
Effective from FY 2016, the Company has applied the “Implementation Guidance on Recoverability ofDeferred Tax Assets” (ASBJ Guidance No. 26, March 28, 2016).
(Segment information, etc.)[Segment information]
1. Overview of reportable segments
Reportable segments of the Group are determined from those which can provide separate financial information,
and are regularly reviewed by the Board of Directors to determine the allocation of management resources and toevaluate achievements among the constituent units of the Group.
The Group is composed of a single group and four divisions, each of which conducts business activities bydeveloping independent management strategies for products and services it handles. The Group therefore consistsof segments organized by product and service based on divisions, and the reportable segments comprise “AircraftInteriors Business,” “Aircraft Seat Business,” “Aircraft Components Business” and “Aircraft MaintenanceBusiness.”“Aircraft Interiors Business” mainly engages in the manufacturing and sales of products including galleys andlavatories for passenger aircraft. “Aircraft Seat Business” primarily engages in manufacturing and sales of
products including passenger aircraft seats. “Aircraft Components Business” engages in manufacturing and sales
primarily of heat exchangers, aircraft equipment including jet engine parts, and ADP (CFRP structure parts).
“Aircraft Maintenance Business” conducts operations such as maintenance and alteration of regional jets, mediumand small-sized aircrafts and helicopters, as well as repairs of equipment for these aircrafts.
The Company has abolished the previous in-house company system since June 28, 2016, in light of changes inthe business environment and the scale of its operations, as well as to establish a framework capable of meeting therising demand in commercial aircraft. The Company has reorganized its system into a framework comprising asingle group and four divisions. The business of development, design and manufacture of aircraft seats, which had
formerly been conducted in the aircraft interiors business, has become an independent business segment, and theformer divisions have been reorganized into the “Aircraft Interiors Manufacturing Division,” “Aircraft Seat
Manufacturing Division,” “Aircraft Components Manufacturing Division” and “Aircraft Maintenance Division.”
14

Furthermore, the “Aircraft Interiors and Components Group” has been established to oversee the threemanufacturing divisions, excluding the Aircraft Maintenance Division. In accordance with this change, from FY
2016, the previous reportable segments of “Aircraft Interiors Business,” “Aircraft Components Business” and“Aircraft Maintenance Business” have been changed to “Aircraft Interiors Business,” “Aircraft Seat Business,”“Aircraft Components Business” and “Aircraft Maintenance Business.”
As it would be difficult to retrospectively obtain the information necessary to prepare segment information for
FY 2015 according to the segment classification of FY 2016, segment information for FY 2015 prepared according
to the revised classification method is not disclosed.
2. Method of calculating net sales, income (loss), assets, liabilities and others by reportable segment
The accounting method used for reportable business segments is generally the same as stated in “Significant
Matters that Serve as the Basis for Preparation of Consolidated Financial Statements.” Reportable segment income
figures are based on ordinary income. Inter-segment net sales and transfers are based on market prices.
As mentioned in changes in accounting policies, following the revision of the Corporation Tax Act, theCompany has changed the method for the depreciation of facilities attached to buildings and structures acquired on
or after April 1, 2016 from the declining-balance method to the straight-line method. Accordingly, the Company
has changed the method for the depreciation of business segment likewise.
The impact of this change on profit or loss is immaterial.

15

3. Information on net sales, income (loss), assets, liabilities and others by reportable segment
For fiscal year 2015 (from April 1, 2015 to March 31, 2016)(Thousand yen)

Net sales
Net sales to outside customers
Inter-segment net sales or transfers
Total
Segment income
Segment assets
Other items
Depreciation
Amortization of goodwill
Interest income
Interest expenses
Share of profit of entities accounted
for using equity method
Increase in property, plant andequipment, intangible assets andlong-term prepaid expenses

Aircraft
Interiors
Business

Reportable segment
Aircraft
Aircraft
Maintenance
Components
Business
Business

77,023,733
89,283
77,113,016
7,866,057
73,837,782

6,366,359
59,681
6,426,041
215,408
10,428,436

1,739,216
137,971
1,452
249,134

Total

Others(Note)

Total

8,170,915
478,925
8,649,841
166,369
7,918,471

91,561,009
627,890
92,188,899
8,247,835
92,184,690

67
133,001
133,069(2,144)
99,64991,561,076
760,891
92,321,968
8,245,691
92,284,339

480,435
27
20,865324,555
60
16,4982,544,208
137,971
1,540
286,498

1,853-

2,546,061
137,971
1,540
286,498

43,925--43,925-43,9252,602,680

450,460

262,195

3,315,336(403)

3,314,932(Note) The Others segment includes the businesses of affiliates Orange JAMCO Corporation and JAMCOTECHNICAL CENTER Co., Ltd. Orange JAMCO Corporation is a special-purpose subsidiary,
dedicated to promoting the employment of people with disabilities and provides assistance work in the
Company’s factories, which is one of the corporate social responsibilities, while JAMCOTECHNICAL CENTER Co., Ltd. is engaged in the research and development of new technologies andproducts.

16For fiscal year 2016 (from April 1, 2016 to March 31, 2017)(Thousand yen)

Net sales
Net sales to outside
customers
Inter-segment net sales ortransfers
Total
Segment income (loss)
Segment assets
Other items
Depreciation
Interest income
Interest expenses
Share of profit of entities
accounted for using equity
methodIncrease in property, plantand equipment, intangible
assets and long-term
prepaid expenses

Aircraft
Interiors
Business

Reportable segment
Aircraft
Aircraft
Aircraft Seat
Components MaintenanceBusiness
Business
Business

55,311,603

12,556,148

6,349,189

7,617,480

81,834,422

1,141,323

-

3,621

85,5881,230,533

90,69756,452,927
4,676,748
55,286,010

12,556,148(3,547,501)
18,894,582

6,352,811
96,98010,098,031

7,703,068
64,0408,269,261

83,064,956
1,290,267
92,547,887

90,769 83,155,725(4,324) 1,285,942
11,885 92,559,772

1,506,980
4,851
172,747

136,925
1,929
93,451

516,016416
23,707

313,826
369
19,2702,473,749
7,567
309,176-

2,473,749
7,567
309,176

37,400---37,400-37,4001,384,814

254,432

650,880

154,2362,444,364-

2,444,364

Total

Others(Note)

Total

72 81,834,495
1,321,230(Note) The Others segment includes the businesses of affiliates Orange JAMCO Corporation and JAMCOTECHNICAL CENTER Co., Ltd. During FY 2016, JAMCO TECHNICAL CENTER Co., Ltd., which
was a consolidated subsidiary, was excluded from the scope of consolidation due to completion ofliquidation. Orange JAMCO Corporation is a special-purpose subsidiary dedicated to promoting theemployment of people with disabilities and provides assistance work in the Company’ factories, which
is one of the corporate social responsibilities.

174. Differences between the total amount of reportable segments and the amounts in the Consolidated Financial
Statements and the major details of such differences(Matters relating to adjustment of differences)(Thousand yen)
Net sales

Fiscal year 2015
92,188,899
133,069(760,891)
91,561,076

Reportable segments total
Net sales of Others
Eliminations of inter-segment transactions
Net sales in the Consolidated Financial Statements

Fiscal year 2016
83,064,956
90,769(1,321,230)
81,834,495(Thousand yen)

IncomeReportable segments total
Income (loss) of Others
Ordinary income in the Consolidated Financial Statements

Fiscal year 2015
8,247,835(2,144)
8,245,691

Fiscal year 2016
1,290,267(4,324)
1,285,942(Thousand yen)

AssetsFiscal year 2015
92,184,690
99,64992,284,339

Reportable segments total
Assets of Others
Total assets in the Consolidated Financial Statements

Fiscal year 2016
92,547,887
11,88592,559,772(Thousand yen)

Other items

Reportablesegments total

OthersAmounts in theConsolidated
Financial Statements

Adjustments

FY 2015 FY 2016 FY 2015 FY 2016 FY 2015 FY 2016 FY 2015

FY 2016

Depreciation

2,544,208

2,473,749

1,853

-

-

-

2,546,061

2,473,749

Increase in property,
plant and equipment
and intangible assets

3,315,336

2,444,364

(403)

-

-

-

3,314,932

2,444,364

18

5. Matters concerning changes to reportable segments, etc.
As mentioned in “1. Overview of reportable segments,” the classification of reportable segments has changed.
However, as it would be difficult to retrospectively obtain the information necessary to prepare segment
information for FY 2015 based on the segment classification of FY 2016, segment information for FY 2016 is
prepared based on the classification method for FY 2015 as follows.
(Thousand yen)

Net sales
Net sales to outside customers
Inter-segment net sales or transfers
Total
Segment income
Segment assets
Other items
Depreciation
Interest income
Interest expenses
Share of profit of entities accounted
for using equity method
Increases in property, plant andequipment, intangible assets andlong-term prepaid expenses

Aircraft
Interiors
Business

Reportable segment
Aircraft
Aircraft
Maintenance
Components
Business
Business

67,867,752
61,13667,928,888
1,129,246
74,180,593

6,349,189
3,621
6,352,811
96,98010,098,031

7,617,480
85,588
7,703,068
64,0408,269,261

81,834,422
150,346
81,984,768
1,290,267
92,547,887

72
90,69790,769(4,324)
11,88581,834,495
241,043
82,075,538
1,285,942
92,559,772

1,643,905
6,780
266,198

516,016416
23,707

313,826
369
19,2702,473,749
7,567
309,176-

2,473,749
7,567
309,176

37,400--37,400-37,4001,639,247

650,880

154,2362,444,364-

2,444,364

Others(Note)

Total

Total

[Related information]
For fiscal year 2015 (from April 1, 2015 to March 31, 2016)
1. Information by product and service
This is omitted as similar information is disclosed in segment information.
2. Information by geographical area
(1) Net sales(Thousand yen)
North AmericaJapan
14,542,369

Asia & Oceania

U.S.
36,886,090

36,469,208

Singapore
31,950,171

14,316,283

EuropeTotal

8,182,445

91,561,076(Note) Net sales are classified by country or area based on the locations of customers.
(2) Property, plant and equipment(Thousand yen)Japan
11,339,178

U.S.

Asia & Oceania

1,923,020

1,234,17519EuropeTotal-

14,496,373

3. Information by major customers(Thousand yen)
Name of customer

Net sales

Related segment

MITSUBISHI INTERNATIONAL
CORP.

30,470,836

Aircraft interiors business

ITOCHU Singapore Pte, Ltd.

10,583,593

Aircraft interiors business

For fiscal year 2016 (from April 1, 2016 to March 31, 2017)
1. Information by product and service
This is omitted as similar information is disclosed in segment information.
2. Information by geographical area
(1) Net sales(Thousand yen)
North AmericaJapan
13,530,372

Asia & Oceania

U.S.
35,935,607

35,707,294

Singapore
25,476,888

14,969,520

EuropeTotal

6,891,626

81,834,495(Note) Net sales are classified by country or area based on the locations of customers.
(2) Property, plant and equipment(Thousand yen)
Japan

U.S.

11,290,320

Asia & Oceania

2,017,731

1,048,146EuropeTotal-

14,356,198

3. Information by major customers(Thousand yen)
Name of customer

Net sales

Related segment

MITSUBISHI INTERNATIONAL
CORP.

29,653,558

Aircraft interiors business

ITOCHU Singapore Pte, Ltd.

12,948,335

Aircraft interiors business, Aircraft
seat business[Information on impairment loss on non-current assets by reportable segment]
For fiscal year 2015 (from April 1, 2015 to March 31, 2016)
There is no relevant information.
For fiscal year 2016 (from April 1, 2016 to March 31, 2017)
There is no relevant information.

20

[Information on amortization and unamortized balance of goodwill by reportable segment]
For fiscal year 2015 (from April 1, 2015 to March 31, 2016)(Thousand yen)
Aircraft
Interiors
Business
Amortization
for the period
Unamortizedbalance at theend of theperiodAircraft
Components
Business

Aircraft
MaintenanceBusiness

137,971--

137,971-

137,971

-

-

-

-

-

-

For fiscal year 2016 (from April 1, 2016 to March 31, 2017)
There is no relevant information.
[Information on gain on bargain purchase by reportable segment]
For fiscal year 2015 (from April 1, 2015 to March 31, 2016)
There is no relevant information.
For fiscal year 2016 (from April 1, 2016 to March 31, 2017)
There is no relevant information.

21

Total

OthersTotal

(Per share information)
Fiscal year 2015

Fiscal year 2016

(from April 1, 2015 to March 31,
2016)(from April 1, 2016 to March 31,
2017)

Net assets per share

1,020.08 yen

1,013.58 yen

Net income per share

192.72 yen

37.82 yen

Not presented because there are noNot presented because there are no

latent shares.

latent shares.

Diluted net income per share(Notes) 1. The basis for calculating net income per share is as shown below.
Fiscal year 2015

Fiscal year 2016

(from April 1, 2015 to March 31,
2016)(from April 1, 2016 to March 31,
2017)

Net income attributable toshareholders of parent company

5,169,843

1,014,504--

5,169,843

1,014,504

26,82526,825(thousand yen)Amount not attributable to commonshareholders (thousand yen)
Net income attributable toshareholders of parent company
related to common shares(thousand yen)
Average number of common shares(thousand shares)

2. The basis for calculating net assets per share is as shown below.
Fiscal year 2015

Fiscal year 2016(as of March 31, 2016)(as of March 31, 2017)

Total net assets (thousand yen)Amount deducted from total net
assets (thousand yen)[including non-controlling interests(thousand yen)]
Year-end net assets related tocommon shares (thousand yen)

28,202,319

28,003,540

838,434

813,996[838,434][813,996]

27,363,884

27,189,544

26,82526,825

Number of common shares at yearend used to calculate net assets per
share (thousand shares)

22

(Significant subsequent events)
There is no relevant information.

23