Consolidated Financial Results
for the First Quarter of the Fiscal Year 2018
Ending March 31, 2019
[Japanese GAAP]
August 7, 2018

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 8, 2018
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 2018 (from April 1, 2018 to June 30,
2018)(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 201822,117
25.1
1,456
1,609
Fiscal year 2017
17,679(10.8)
68
69(Note) Comprehensive income: The first quarter of fiscal year 2018: ¥945 million [-%]
The first quarter of fiscal year 2017: ¥(171) million [-%]For the first quarterof
Fiscal year 2018
Fiscal year 2017

Net income per share

Diluted net income
per share

Yen

Yen

36.59
(12.05)-(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

As of June 30, 2018
97,39729,962As of March 31, 2018
94,45629,553(Reference) Equity: As of June 30, 2018: ¥29,182 million
As of March 31, 2018: ¥28,752 million

30.0
30.4

Million yen

981
(323)

%

-

2. Dividend distribution
Dividend distribution per share
1stquarter-end
Yen

2nd
quarter-end
Yen

3rd
quarter-end
Yen

Year-end

Fiscal year 2017
0.00
Fiscal year 2018
Fiscal year 2018
0.00
(Planned)(Note) Revision to the plan of dividend distribution announced most recently: None

Total

Yen

Yen

20.00

20.00

20.00

20.00

3. Consolidated Financial Results Forecast for the Fiscal Year 2018 (from April 1, 2018 to March 31, 2019)(%: 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%

2nd40,3005.91,550 (18.7)
1,400(25.3)
930 (10.1)
quarter-end
Full year
81,9005.3
3,110 (30.4)
2,680(23.5)
1,800
7.0(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 2018: 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, 2018: 26,863,974 shares
As of March 31, 2018: 26,863,974 shares
2) Number of treasury stock:
As of June 30, 2018: 38,762 shares
As of March 31, 2018: 38,762 shares
3) Average number of common shares outstanding:
1st quarter of FY 2018: 26,825,212 shares
1st quarter of FY 2017: 26,825,228 shares

Yen

34.66
67.10

*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 ................................................................................................................ 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 Statements of Income............................................................................................. 7
Quarterly Consolidated Statements 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(Additional information) ......................................................................................................................... 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 2018, the overall global economy generally remained firm, as the U.S.
economy steadily grew, and the economies in Japan and the euro-zone also continued to recover moderately,while China also showed signs of economic rebound. In the foreign exchange market, the dollar-yen exchange
rate generally showed a trend of a yen depreciation, moving within the range of ¥105 to ¥111 per US$1, amid
uncertainties about the future due mainly to the trends in trade issues.
In the air transportation industry, while fierce competition continues due to aggressive efforts of low-costcarriers (LCCs), major airlines are launching various strategies such as securing flight routes with high demand,
enhancing passenger cabin services, and entering into LCC business as a result of growing global demand for
air transportation. Backed by rising aircraft demand, aircraft manufacturers have maintained a high level oforder backlog. With major aircraft manufacturers receiving a record level of orders surpassing the previousyear level at the 2018 Farnborough Airshow, the aircraft market is expected to remain robust. Furthermore,
historic realignment movements, such as strategic alliances formed between regional jet manufacturers andBoeing or Airbus, have been observed.
Under such circumstances, in the aircraft interiors business, the Group promoted initiatives to improve
production efficiency and reduce cost, while starting shipment of lavatories for Boeing 777X, which is the
successor to Boeing 777.
In the aircraft seat business, we promoted initiatives to improve production efficiency and reduce cost, whileworking to expand order receipt of the new standard seats.
In the aircraft components business, we promoted initiatives to improve productivity, while proceeding withinitiatives to increase production of 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.
As a result, on a consolidated basis, during the first quarter of FY 2018, the Company posted net sales of¥22,117 million (up ¥4,438 million compared to the same period of the previous fiscal year), operating incomeof ¥1,456 million (up ¥1,388 million compared to the same period of the previous fiscal year), ordinary incomeof ¥1,609 million (up ¥1,540 million compared to the same period of the previous fiscal year) and net income
attributable to shareholders of parent company of ¥981 million (net loss attributable to shareholders of parent
company of ¥323 million in the same period of the previous fiscal year).
Provision for loss on construction contracts of ¥2,584 million for construction to be completed in or after
the next fiscal year was recognized as of June 30, 2018. The impact of this provision for loss on construction
contracts on income (loss) for the first quarter of FY 2018 was an increase of ¥517 million in cost of sales(provision for loss on construction contracts as of March 31, 2018 was ¥2,066 million).
Selling, general and administrative expenses, non-operating income (expenses), and extraordinary income(loss) are as follows:
Selling, general and administrative expenses were ¥2,323 million (an increase of ¥186 million compared tothe same period of the previous fiscal year) due mainly to increases in sales commissions and warranty
expenses.
In terms of non-operating income (expenses), an income of ¥153 million was reported, an increase of ¥152
million due mainly to an improvement in foreign exchange gains (losses) resulting from the depreciation of theyen in the foreign exchange market from the end of the previous fiscal year (an income of ¥1 million in thesame period of the previous fiscal year).
As for extraordinary income (loss), a loss of ¥78 million was reported due mainly to loss on disposal of noncurrent assets (a loss of ¥23 million in the same period of the previous fiscal year).

2

Business performance by segment is as follows.
[Aircraft Interiors Business]
In the aircraft interiors business, net sales increased from the same period of the previous fiscal year due
mainly to initial shipments of lavatories for flight tests of Boeing 777X, which is under development by Boeing,
and an increase in sales of spare parts, despite the impact of a decrease in shipments of galleys and lavatories
for the current Boeing 777s that are being replaced by Boeing 777X.
Meanwhile, although ordinary income was somewhat impacted by the increase in net sales, it was affectedby the increase in costs due to the additional recording of provision for loss on construction contracts, mainlyreflecting an increase in initial costs for some programs.
As a result, the aircraft interiors business posted net sales of ¥14,889 million (up ¥1,650 million comparedto the same period of the previous fiscal year) and ordinary income of ¥1,622 million (down ¥522 million
compared to the same period of the previous fiscal year).
[Aircraft Seat Business]
In the aircraft seat business, net sales increased from the same period of the previous fiscal year due to anincrease in product shipments. Ordinary income (loss) improved from the same period of the previous fiscal
year due mainly to reaction to additional provision for loss on construction contracts recorded as a result of anincrease in initial costs in the same period of the previous fiscal year and shipments of profitable programs.
As a result, the aircraft seat business posted net sales of ¥4,760 million (up ¥3,034 million compared to thesame period of the previous fiscal year) and ordinary income of ¥5 million (ordinary loss of ¥1,984 million in
the same 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
to the impact of a decrease in shipments of heat exchangers and other defense-related components, despite anincrease in shipments of aircraft engine parts. However, ordinary income (loss) improved mainly as a result of
improved productivity.
As a result, the aircraft components business posted net sales of ¥1,246 million (down ¥125 million
compared to the same period of the previous fiscal year) and ordinary income of ¥12 million (ordinary loss of¥53 million in the same period of the previous fiscal year).
[Aircraft Maintenance Business]
In the aircraft maintenance business, net sales decreased from the same period of the previous fiscal year asa result of a decrease in completed construction due to factors such as changes in the delivery dates for someaircraft maintenance. Moreover, although ordinary income (loss) improved due to initiatives to reduce cost,ordinary loss was reported.
As a result, the aircraft maintenance business posted net sales of ¥1,221 million (down ¥120 million
compared to the same period of the previous fiscal year) and ordinary loss of ¥32 million (ordinary loss of ¥37
million in the same 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 (down ¥0 million compared to the same
period of the previous fiscal year) and ordinary income of ¥1 million (up ¥0 million compared to 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, 2018 amounted to ¥97,397 million, up ¥2,940 million from the end of theprevious fiscal year. Of such, total current assets increased by ¥2,677 million from the end of the previous fiscal
year, due mainly to an increase in cash and deposits (up ¥2,023 million compared to the end of the previous
fiscal year), an increase in notes and accounts receivable - trade (up ¥144 million compared to the end of theprevious fiscal year) and an increase in work in process (up ¥461 million compared to the end of the previous
fiscal year), despite a decrease in raw materials and supplies (down ¥188 million compared to the end of theprevious fiscal year). Total non-current assets increased by ¥262 million from the end of the previous fiscal
year as a result of an increase in investments and other assets (up ¥503 million compared to the end of theprevious fiscal year), despite decreases in property, plant and equipment (down ¥91 million compared to theend of the previous fiscal year) and intangible assets (down ¥149 million compared to the end of the previous
fiscal year) as a result of relatively limited investment for the first quarter of FY 2018.
Total liabilities amounted to ¥67,434 million, up ¥2,531 million from the end of the previous fiscal year.
This was attributable primarily to an increase in accrued expense-salary (up ¥830 million compared to the endof the previous fiscal year) and an increase in provision for loss on construction contracts (up ¥517 million
compared to the end of the previous fiscal year), which offset the decrease in loans payable (down ¥894 million
compared to the end of the previous fiscal year).
Total net assets amounted to ¥29,962 million, up ¥408 million from the end of the previous fiscal year. Thiswas due primarily to an increase in retained earnings (up ¥445 million compared to the end of the previous
fiscal year). As a result, the equity ratio stood at 30.0%.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Financial results for the first quarter of FY 2018 were higher than expected in terms of progress of profit
against the consolidated financial results forecast announced on May 8, 2018. This was attributable primarily tostrong sales for the aircraft interiors business and the aircraft seat business, and a weaker-than-expected yen.
The exchange rate assumed for the consolidated financial results forecast is unchanged at ¥105 per US$1, andthe financial results forecast for the second quarter of FY 2018 and the fiscal year ending March 31, 2019
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, 2018
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
Provision for loss on compensation
Other
Total non-current liabilities
Total liabilities

5

As of June 30, 2018

3,833,880
22,451,904
715,123
27,009,919
14,933,273
3,770,053(2,944)72,711,210

5,856,911
22,596,298
802,268
27,471,341
14,744,636
3,923,821(6,070)75,389,208

13,840,417
1,943,674
5,961,625
21,745,718
94,456,929

13,748,865
1,794,246
6,464,725
22,007,837
97,397,045

7,518,512
7,462,195
22,239,114
900,000
611,2211,604,173
2,066,719
9,900,322
52,302,258

7,868,055
7,620,456
20,744,896
1,600,000
969,4022,434,849
2,584,623
11,073,237
54,895,523

4,500,000

4,400,000

184,006-

129,501
6,876,571
203,751
706,975
12,600,807
64,903,066

6,901,170
256,894
981,077
12,539,143
67,434,666

(Thousand yen)
As of March 31, 2018
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, 2018

5,359,893
4,367,993
19,039,542(30,772)
28,736,656

5,359,893
4,367,993
19,484,544(30,772)
29,181,658

177,595
72,818(46,134)

192,099(120,411)
103,804(188,623)(174,932)

15,656
801,550
29,553,862
94,456,929

560
780,159
29,962,378
97,397,045

(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 2017

The first quarter of FY 2018

17,679,125
15,473,189
2,205,935
2,137,384
68,55022,117,737
18,337,383
3,780,353
2,323,457
1,456,896

1,771
3,056
-

7,317
3,272
266,853

5,371

7,283

44,79333,00028,0505,644
121,686

47,557
5,005
337,290

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

98,28553,14332,770184,200
1,609,987

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

78,99878,9981,530,988
947,947(356,004)
591,943
939,044(42,461)(323,348)

981,506

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
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
Compensation expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on disposal of non-current assets
Total extraordinary loss
Income before taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income (loss)
Net loss attributable to non-controlling shareholders
Net income (loss) attributable to shareholders of parent
company

7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 2017
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
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

The first quarter of FY 2018(334,518)

939,044

39,09977,045
20,834
23,404

14,503(193,229)
171,516
13,691

2,272

(506)

162,656(171,861)

5,975
945,020(165,439)

966,411(6,421)(21,391)

(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.
(Additional information)
The first quarter of FY 2018(from April 1, 2018 to June 30, 2018)(Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)
From the beginning of the first quarter of FY 2018, the Company applied “Partial Amendments to
Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018), etc.
Accordingly, deferred tax assets are presented under investments and other assets, and deferred tax
liabilities are presented under non-current liabilities.
(Abolition of the retirement benefits plan for Directors and Audit & Supervisory Board Members)
The Company had recognized the amount required to be paid at the end of period pursuant to theinternal rules in preparation for the award of retirement benefits for Directors and Audit & Supervisory
Board Members as “provision for directors’ and auditors’ retirement benefits” as well as the amountrequired to be paid at the end of period pursuant to the internal rules in preparation for the award of
retirement benefits for Executive Officers as “provision for executive officers’ retirement benefits.”
However, the Company decided to abolish the retirement benefits plan for Directors and Audit &Supervisory Board Members and for Executive Officers at the closing of the Annual General Meetingof Shareholders held on June 27, 2018 and to make final payments of the retirement benefits
corresponding to their terms of office.
Accordingly, ¥328,953 thousand of “provision for directors’ and auditors’ retirement benefits” and“provision for executive officers’ retirement benefits” were fully reversed, and the unpaid portion of
the final payments was recognized as “long-term accounts payable - other.” The amount of long-term
accounts payable - other was included in “other” under non-current liabilities.

9

(Segment information, etc.)[Segment information]
I. 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

Others(Note)

Total

13,238,135

1,725,814

1,372,418

1,342,744

17,679,113

11

17,679,125

595,539-

197

100,319

696,056

26,147722,204

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

26,159644

18,401,329
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 withdisabilities and provides assistance work in the Company’s factories, which is one of the corporatesocial 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. Information on impairment loss on non-current assets and goodwill by reportable segment
There is no relevant information.

10

68,947644
69,591

II. For the first quarter of FY 2018
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

14,889,048

4,760,175

1,246,645

1,221,859

22,117,728

9

22,117,737

410,50737,7686,511

25,603

480,390

27,386

507,776

15,299,555
1,622,761

4,797,943
5,989

1,253,157
12,432

1,247,462(32,433)

22,598,118
1,608,750

27,395
1,236

22,625,514
1,609,987(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 corporatesocial 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. Information on impairment loss on non-current assets and goodwill by reportable segment
There is no relevant information.

11

1,608,750
1,236
1,609,987