Consolidated Financial Results
for the First Quarter of the Fiscal Year 2017
Ending March 31, 2018
[Japanese GAAP]
August 4, 2017

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: Toshikazu Kimura, Director & Senior Managing Executive Officer
Phone: +81-42-503-9145
The date of filing quarterly securities report: August 7, 2017
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 2017 (from April 1, 2017 to June 30,
2017)(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 2017
17,679(10.8)
68
69
Fiscal year 2016
19,812(3.2)(1,100)(1,711)(Note) Comprehensive income: The first quarter of fiscal year 2017: ¥(171) million [-%]
The first quarter of fiscal year 2016: ¥(1,615) million [-%]For the first quarterof
Fiscal year 2017
Fiscal year 2016

Net income per share

Diluted net income
per share

Yen

Yen

(12.05)(42.89)-(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

As of June 30, 2017
91,02327,512As of March 31, 201792,55928,003(Reference) Equity: As of June 30, 2017: ¥26,755 million
As of March 31, 2017: ¥27,189 million

29.4
29.4

Million yen(323)(1,150)%-2. Dividend distribution
Dividend distribution per share
1stquarter-end
Yen

2nd
quarter-end
Yen

3rd
quarter-end
Yen

Year-end

Fiscal year 2016
0.00
Fiscal year 2017
Fiscal year 2017
0.00
(Planned)(Note) Revision to the plan of dividend distribution announced most recently: None

Total

Yen

Yen

10.0

10.0

20.0

20.0

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
Million yen% Million yen% Million yen%

Million yen%

2nd40,300
0.1
1,810
1,660
1,050
quarter-end
Full year
79,400
(3.0)
3,800
78.2
3,470
169.8
2,280
124.7
(Note) Revision to the forecast of consolidated financial results announced most recently: None

Yen

39.14
84.99

* Notes:(1) Changes in significant subsidiaries during this quarter of the fiscal year 2017: 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: None
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, 2017: 26,863,974 shares
As of March 31, 2017: 26,863,974 shares
2) Number of treasury stock:
As of June 30, 2017: 38,762 shares
As of March 31, 2017: 38,730 shares
3) Average number of common shares outstanding:
1st quarter of FY 2017: 26,825,228 shares
1st quarter of FY 2016: 26,825,298 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.
*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 .............................................................................................................. 4(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .......... 4
2. Quarterly Consolidated Financial Statements and Primary Notes ................................................................. 5(1) Quarterly Consolidated Balance Sheets ..................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................. 7
Quarterly Consolidated Statement of Income ............................................................................................ 7
Quarterly Consolidated Statement of Comprehensive Income .................................................................. 8(3) Notes to Quarterly Consolidated Financial Statements .............................................................................. 9(Notes on going concern assumption) ................................................................................................... 9(Notes in the case of significant changes in shareholders’ equity) ........................................................ 9(Segment information, etc.) ................................................................................................................. 10

1

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the first quarter of FY 2017, the overall global economy generally remained firm, as the U.S.
economy gradually improved, and the economies in Japan and the euro-zone also recovered moderately, while
China and emerging countries also showed signs of economic rebound. In the foreign exchange market, thedollar-yen exchange rate remained unstable, repeatedly moving within the range of ¥108 to ¥114 per US$1,
amid uncertainties about the future due mainly to trends in monetary policies in the U.S.
In the air transportation industry, fierce competition continued due to the rise of low-cost carriers (LCCs),
despite the growing demand for air transportation and low crude oil prices that contributed to the businessclimate with improvements in airline earnings. Aircraft manufacturers are maintaining the number of new
aircrafts produced at a high level in response to increasing aircraft demand, while pushing ahead withproduction adjustment by reducing the production of conventional models. Also, with major aircraft
manufacturers receiving a record level of orders at the 2017 Paris Air Show, the aircraft market is anticipated toremain robust.
Under such circumstances, in the aircraft interiors business and the aircraft seat business, the Groupendeavored to improve production efficiency and stabilize the production system, while promoting initiatives toreduce cost.
In the aircraft components business, we promoted efforts to improve productivity for CFRP structure parts
and aircraft engine parts.
In the aircraft maintenance business, we continued with initiatives to ensure flight safety and enhancequality, while also taking initiatives to expand the range of services and improve earnings, in addition topromoting order receipt of new products.
As a result, on a consolidated basis, during the first quarter of FY 2017, the Company posted net sales of¥17,679 million (down ¥2,133 million compared to the same period of the previous fiscal year), operating
income of ¥68 million (operating loss of ¥1,100 million in the same period of the previous fiscal year), ordinary
income of ¥69 million (ordinary loss of ¥1,711 million in the same period of the previous fiscal year) and net
loss attributable to shareholders of parent company of ¥323 million (net loss attributable to shareholders ofparent company of ¥1,150 million in the same period of the previous fiscal year).
During the first quarter of FY 2017, additional provision for loss on construction contracts was recognized
as of June 30, 2017, reflecting an expected increase in initial costs in the development and manufacturing
process for some new aircraft seat manufacturing programs. As a result, provision for loss on construction
contracts, including the portion due to products other than seats, amounted to ¥4,798 million, and the impact of
an increase in cost of sales for the first quarter of FY 2017 resulting therefrom was ¥1,364 million (provision
for loss on construction contracts at the end of FY 2016 was ¥3,434 million).
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 ¥2,137 million (a decrease of ¥184 million compared tothe same period of the previous fiscal year) due mainly to a decrease in warranty expenses.
In terms of non-operating income/expenses, an income of ¥1 million was reported, an improvement of¥612 million compared to the same period of the previous fiscal year during which foreign exchanges losses of¥576 million were recognized as a result of the sharp appreciation of the yen (an expense of ¥611 million in thesame period of the previous fiscal year).
As for extraordinary income/loss, a loss of ¥23 million was reported due to loss on disposal of non-current
assets (a loss of ¥12 million in the same period of the previous fiscal year).

2

Business performance by segment is as follows.
[Aircraft Interiors Business] and [Aircraft Seat Business]
In the reorganization on June 28, 2016, the aircraft seat business segment was established by a split from theaircraft interiors business segment.
During the first quarter of FY 2017, since it is difficult to compare the business performance of the aircraft
seat business segment with the same period of the previous fiscal year, the business performance was comparedusing the segment before reorganization.
In the aircraft interiors business and aircraft seat business, net sales decreased from the same period of theprevious fiscal year. This decline was attributable to factors including a decrease in shipments of galleys for thecurrent Boeing 777s that are in the transition period to the Boeing 777X under development by Boeing, andpostponement of shipment of the new program of aircraft seats to the second quarter. As for ordinary income,although earnings improved in the aircraft interiors business, it was affected by the increase in cost due to therecording of additional provision for loss on construction contracts for some new aircraft seat manufacturing
programs as above.
As a result, the aircraft interiors business segment before reorganization, composed of the aircraft interiors
and aircraft seat businesses, posted net sales of ¥14,963 million (down ¥1,930 million compared to the same
period of the previous fiscal year) and ordinary income of ¥160 million (ordinary loss of ¥1,632 million in thesame period of the previous fiscal year). As for the breakdown of results of each segment, the aircraft interiors
business posted net sales of ¥13,238 million and ordinary income of ¥2,145 million and the aircraft seatbusiness posted net sales of ¥1,725 million and ordinary loss of ¥1,984 million.
[Aircraft Components Business]
In the aircraft components business, net sales decreased from the same period of the previous fiscal year andordinary loss was posted due mainly to a decrease in shipments of heat exchangers and other defense-related
components, despite a reduction in cost of new products for CFRP structure parts and an improvement inproduction efficiency for aircraft engine parts.
As a result, the aircraft components business posted net sales of ¥1,372 million (down ¥206 million
compared to the same period of the previous fiscal year) and ordinary loss of ¥53 million (ordinary loss of ¥28
million in the same period of the previous fiscal year).
[Aircraft Maintenance Business]
In the aircraft maintenance business, although net sales increased from the same period of the previous
fiscal year due to continued solid production for equipment maintenance, ordinary loss was reported, reflecting
a decline in profit margin due mainly to a decrease in completed construction for aircraft maintenance.
As a result, the aircraft maintenance business posted net sales of ¥1,342 million (up ¥3 million compared tothe same period of the previous fiscal year) and ordinary loss of ¥37 million (ordinary loss of ¥51 million in thesame period of the previous fiscal year).
[Others]
The Others segment includes the businesses of the consolidated subsidiary Orange JAMCO Corporation,
and we were able to make steady progress mainly in inter-segment transactions, including assistance work in
the aircraft interiors business.
As a result, the Others segment posted net sales of ¥0 million (up ¥0 million from the same period of theprevious fiscal year) and ordinary income of ¥0 million (down ¥0 million from the same period of the previous
fiscal year).

3(2) Explanation of Financial Position[Assets, liabilities and net assets]
Total assets as of June 30, 2017 amounted to ¥91,023 million, down ¥1,536 million from the end of theprevious fiscal year. Of such, total current assets decreased by ¥1,309 million from the end of the previous
fiscal year, due mainly to a decrease in notes and accounts receivable - trade (down ¥5,738 million compared tothe end of the previous fiscal year), despite an increase in cash and deposits (up ¥941 million compared to theend of the previous fiscal year) and an increase in work in process (up ¥3,300 million compared to the end of
the previous fiscal year). Total non-current assets decreased by ¥227 million from the end of the previous fiscal
year as a result of relatively limited investment for the first quarter of FY 2017.
Total liabilities amounted to ¥63,510 million, down ¥1,045 million from the end of the previous fiscal year.
This was attributable primarily to a decrease in notes and accounts payable - trade (down ¥2,157 million
compared to the end of the previous fiscal year) and a decrease in short-term loans payable (down ¥2,725
million compared to the end of the previous fiscal year), which offset the increase in provision for loss on
construction contracts (up ¥1,364 million compared to the end of the previous fiscal year) and the increase inaccrued expense-salary (up ¥933 million compared to the end of the previous fiscal year).
Total net assets amounted to ¥27,512 million, down ¥490 million from the end of the previous fiscal year.
This was due primarily to a decrease in retained earnings (down ¥591 million compared to the end of theprevious fiscal year). As a result, the equity ratio stood at 29.4%.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Earnings for the first quarter of FY 2017 were lower than expected in terms of progress towards theconsolidated financial results forecast for FY 2017 announced on May 10, 2017. However, as earnings are
expected to recover as a result of countermeasures, the consolidated financial results forecast for the second
quarter of FY 2017 and the full fiscal year ending March 31, 2018 remain unchanged at the present time.

42. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Thousand yen)
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise 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
Accrued expense-salary
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors’ and auditors’ retirement
benefits
Provision for executive officers’ retirement benefits
Liability for employee retirement benefits
Other
Total non-current liabilities
Total liabilities

5

As of June 30, 2017

2,277,428
23,158,092
602,859
23,098,314
17,659,592
5,958,534(6,161)72,748,660

3,219,058
17,419,248
635,073
26,398,755
17,384,910
6,387,865(5,425)71,439,487

14,356,198
1,562,225
3,892,687
19,811,111
92,559,772

14,150,035
1,516,262
3,917,566
19,583,864
91,023,351

9,608,011
6,371,831
22,741,823
700,000
965,269
1,302,943
3,434,215
7,121,763
52,245,859

7,450,212
8,290,170
20,016,000
700,000
941,9812,236,536
4,798,633
6,776,270
51,209,804

4,700,000

4,700,000

175,420

143,754

119,7026,808,585
506,664
12,310,373
64,556,232

129,512
6,831,982
495,354
12,300,604
63,510,408

(Thousand yen)
As of March 31, 2017
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

6

As of June 30, 2017

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

5,359,893
4,367,993
17,034,619(30,772)
26,731,733

106,871(72,280)
135,690145,970
4,764
154,049(304,154)(280,749)(133,873)
813,996
28,003,540
92,559,772

24,035757,174
27,512,943
91,023,351

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income
First Quarter of the Fiscal Year (from April 1 to June 30)(Thousand yen)
The first quarter of FY 2016

The first quarter of FY 201719,812,450
18,590,363
1,222,087
2,322,212(1,100,125)

17,679,125
15,473,189
2,205,935
2,137,384
68,550

768
2,720

1,771
3,056

7,334

5,371

49,886
19,37880,08844,79333,00028,0505,644
121,686

70,318576,733
44,624
691,676(1,711,713)

82,223
22,671
15,751
120,645
69,591

6,426
6,288
12,715(1,724,428)
380,797(946,475)(565,678)(1,158,750)(8,257)(1,150,492)

23,672
23,67245,918869,727(489,290)
380,437(334,518)(11,169)(323,348)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodSubsidy income
Insurance income
Contract cancellation fee
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary loss
Loss on disposal of non-current assets
Head office transfer expenses
Total extraordinary loss
Income (loss) before taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net loss
Net loss attributable to non-controlling shareholders
Net loss attributable to shareholders of parent company

7

Quarterly Consolidated Statement of Comprehensive Income
First Quarter of the Fiscal Year (from April 1 to June 30)(Thousand yen)
The first quarter of FY 2016

The first quarter of FY 2017

(1,158,750)(334,518)(16,724)(446,592)
20,43439,09977,045
20,834
23,404(14,349)2,272(457,231)(1,615,982)

162,656(171,861)(1,534,701)(165,439)(81,280)(6,421)

Net 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
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

8(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.

9

(Segment information, etc.)[Segment information]
I. For the first quarter of FY 2016
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 or transfers
Total
Segment loss

16,894,444
1,988
16,896,432(1,632,901)

Reportable segment
Aircraft
Aircraft
Maintenance
Components
Business
Business
1,579,249
839
1,580,089(28,856)

1,338,747
18,1581,356,906(51,248)

Others(Note)

Total

19,812,442
20,986
19,833,428(1,713,007)

Total

8
22,751
22,7601,294

19,812,450
43,73819,856,188(1,711,713)(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.
2. Differences between the total amount of income or 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 loss in the Quarterly Consolidated Statement of
Income(1,713,007)
1,294(1,711,713)

3. Information on impairment loss on non-current assets and goodwill by reportable segment
There is no relevant information.
II. For the first quarter of FY 2017
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

13,238,135

1,725,814

1,372,418

1,342,744

17,679,113

595,539-

197

100,319

696,056

13,833,674
2,145,258

1,725,814(1,984,933)

1,372,615(53,673)

1,443,064(37,704)

18,375,170
68,947

Others(Note)

Total

11 17,679,125
26,147722,204

26,159 18,401,329
644
69,591(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 with10

disabilities and provides assistance work in the Company’s factories, which is one of the corporatesocial responsibilities.
2. Differences between the total amount of income or 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
Income68,947644
69,5913. Matters concerning changes to reportable segments, etc.
(Changes to reportable segments)
The Company has abolished the previous in-house company system since June 28, 2016, in light of changes
in the business environment and the scale of its operations, as well as to establish a framework capable ofmeeting the rising demand in commercial aircraft. The Company has reorganized its system into a frameworkcomprising a single 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 the former divisions have been reorganized into the “Aircraft Interiors Manufacturing
Division,” “Aircraft Seat Manufacturing Division,” “Aircraft Components Manufacturing Division” and“Aircraft Maintenance Division.” Furthermore, the “Aircraft Interiors and Components Group” has been
established to oversee the three manufacturing divisions, excluding the Aircraft Maintenance Division. In
accordance with this change, from the second quarter of FY 2016, the previous reportable segments of “AircraftInteriors 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 the first quarter of FY 2016 according to the segment classification of the first quarter of FY 2017, thesegment information for the first quarter of FY 2017 has been prepared as follows based on the classification
method before the reorganization for comparison.
(Thousand yen)
Aircraft
Interiors
Business
Net sales
Net sales to outside customers
Inter-segment net sales or transfers
Total
Segment income (loss)

14,963,950
28,28014,992,231
160,324

Reportable segment
Aircraft
Aircraft
Maintenance
Components
Business
Business
1,372,418
197
1,372,615(53,673)

1,342,744
100,319
1,443,064(37,704)

Total

17,679,113
128,797
17,807,911
68,947

4. Information on impairment loss on non-current assets and goodwill by reportable segment
There is no relevant information.

11

Others(Note)

11
26,147
26,159644

Total

17,679,125
154,945
17,834,071
69,591