Consolidated Financial Results
for the First Quarter of the Fiscal Year 2019
Ending March 31, 2020
[Japanese GAAP]
August 6, 2019

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 7, 2019
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 2019 (from April 1, 2019 to June 30,
2019)(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 201918,762(15.2)
394(72.9)
110(93.1)
Fiscal year 201822,117
25.1
1,456
1,609
(Note) Comprehensive income: The first quarter of fiscal year 2019: ¥(24) million [-%]
The first quarter of fiscal year 2018: ¥945 million [-%]For the first quarterof
Fiscal year 2019
Fiscal year 2018

Net income per share

Diluted net income
per share

Yen

Yen

2.20
36.59

-

(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

As of June 30, 2019
104,30230,129As of March 31, 2019
102,980
30,715(Reference) Equity: As of June 30, 2019: ¥29,603 million
As of March 31, 2019: ¥30,173 million

28.4
29.3

Million yen

%

58
981

(94.0)-

2. Dividend distribution

Dividend distribution per share

1stquarter-end

2ndquarter-end
Yen

3rd
quarter-end
Yen

Year-end
Yen

Fiscal year 2018
0.00
Fiscal year 2019
Fiscal year 2019
0.00
(Planned)(Note) Revision to the plan of dividend distribution announced most recently: None

Total
Yen

Yen

20.0

20.0

25.0

25.0

3. Consolidated Financial Results Forecast for the Fiscal Year 2019 (from April 1, 2019 to March 31, 2020)(%: 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%

Full year
92,1009.6
4,310 (0.3)
3,850
17.0
2,630
37.6
(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 2019: None
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Number of common shares issued
1) Number of common shares outstanding (including the number of treasury stock):
As of June 30, 2019: 26,863,974 shares
As of March 31, 2019: 26,863,974 shares
2) Number of treasury stock:
As of June 30, 2019: 38,832 shares
As of March 31, 2019: 38,832 shares
3) Average number of common shares outstanding:
1st quarter of FY 2019: 26,825,142 shares
1st quarter of FY 2018: 26,825,212 shares

Yen

98.04

*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(Changes in accounting policies) ........................................................................................................ 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 2019, the dollar-yen exchange rate showed a trend of a yen appreciation,
moving within the range of the lower ¥112 to the lower ¥107 per US$1, amid growing concerns over a
slowdown in the global economy due to intensifying trade friction between the U.S. and China and the impactof geopolitical risks.
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 new flight routes, enhancing
passenger cabin services, and entering into LCC business as a result of growing global demand for airtransportation. Although the impact of the Boeing 737 MAX aircraft grounding is a matter of temporary
concern, both Boeing and Airbus have maintained a high level of order backlog, backed by rising aircraft
demand. With plans to increase production of some models, along with progress in the development of newmodels aiming at improved fuel efficiency, the aircraft market is expected to remain robust.
Under such circumstances, in the aircraft interiors business and the aircraft seat business, we suspended partof its production activities in response to the inappropriate quality issues announced on March 26, 2019, andimplemented corrective/preventive measures, while proceeding with efforts to raise awareness of bothcompliance and quality to a higher level.
Meanwhile, we started shipments of lavatories and galleys for the Boeing 777X and standard seats for KLM
Royal Dutch Airlines, while embarking on the production of standard seats for Air Europa.
In the aircraft components business, we promoted initiatives to improve productivity, while beginning inhouse production of interiors and seat parts by applying the metal processing technologies we haveaccumulated over the years.
In the aircraft maintenance business, we continued with initiatives to ensure flight safety and enhancequality, while endeavoring to expand aircraft maintenance for airlines such as by opening the Itami Branch.
As a result, on a consolidated basis, during the first quarter of FY 2019, the Company posted net sales of¥18,762 million (down ¥3,354 million compared to the same period of the previous fiscal year), operating
income of ¥394 million (down ¥1,062 million compared to the same period of the previous fiscal year),ordinary income of ¥110 million (down ¥1,499 million compared to the same period of the previous fiscal year)
and net income attributable to shareholders of parent company of ¥58 million (down ¥922 million compared tothe same period of the previous fiscal year).
Provision for loss on construction contracts of ¥3,452 million for construction to be completed in or after
the second quarter of FY 2019 was recognized as of June 30, 2019. The impact of this provision for loss on
construction contracts on income (loss) for the first quarter of FY 2019 was a decrease of ¥328 million in costof sales (provision for loss on construction contracts as of March 31, 2019 was ¥3,781 million).
Selling, general and administrative expenses, non-operating income (expenses), and extraordinary income(loss) are as follows:
Selling, general and administrative expenses were ¥2,102 million (a decrease of ¥220 million compared tothe same period of the previous fiscal year), due mainly to decreases in sales commissions and warranty
expenses.
In terms of non-operating income (expenses), an expense of ¥283 million was reported due mainly to a
deterioration in foreign exchange gains (losses) resulting from the appreciation of the yen in the foreignexchange market from the end of the previous fiscal year (an income of ¥153 million in the same period of theprevious fiscal year).
As for extraordinary income (loss), a loss of ¥41 million was reported due mainly to loss related to quality(a loss of ¥78 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 decreased from the same period of the previous fiscal year due toa temporary delay in the shipment of products owing to the response to inappropriate quality issues.
Ordinary income decreased from the same period of the previous fiscal year, mainly reflecting the impact ofa decrease in net sales, a decline in the number of shipments of profitable programs compared with thefavorable number in the same period of the previous fiscal year, and an additional provision for loss on
construction contracts recorded as a result of an increase in the initial costs of some programs.
As a result, the aircraft interiors business posted net sales of ¥13,815 million (down ¥1,073 million
compared to the same period of the previous fiscal year) and ordinary income of ¥112 million (down ¥1,509
million compared to the same period of the previous fiscal year).
[Aircraft Seat Business]
In the aircraft seat business, net sales decreased from the same period of the previous fiscal year due mainly
to the postponement of shipments of some programs to the second quarter and thereafter, despite efforts tominimize impacts from the suspension of production due to responses to inappropriate quality issues at
Miyazaki JAMCO Corporation, to which the Company outsources production, mainly by shifting orders toother production bases of the Group. Meanwhile, an ordinary loss was reported due mainly to the decrease in
net sales.
As a result, the aircraft seat business posted net sales of ¥2,114 million (down ¥2,645 million compared tothe same period of the previous fiscal year) and ordinary loss of ¥28 million (ordinary income of ¥5 million in
the same period of the previous fiscal year).
[Aircraft Components Business]
In the aircraft components business, despite a decrease in shipments of aircraft engine parts, net sales
increased from the same period of the previous fiscal year due to an increase in shipments of heat exchangers
and other equipment. Meanwhile, an ordinary loss was reported due mainly to a decline in production
efficiency for aircraft engine parts, despite an increase in net sales.
As a result, the aircraft components business posted net sales of ¥1,347 million (up ¥100 million comparedto the same period of the previous fiscal year) and ordinary loss of ¥48 million (ordinary income of ¥12 million
in the same period of the previous fiscal year).
[Aircraft Maintenance Business]
In the aircraft maintenance business, net sales increased from the same period of the previous fiscal year,
while ordinary income (loss) improved due to continued solid performance of aircraft maintenance andequipment maintenance.
As a result, the aircraft maintenance business posted net sales of ¥1,485 million (up ¥263 million comparedto the same period of the previous fiscal year) and ordinary income of ¥76 million (ordinary loss of ¥32 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 loss of ¥0 million (ordinary income of ¥1 million in 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, 2019 amounted to ¥104,302 million, up ¥1,321 million from the end of theprevious fiscal year. Of such, total current assets increased by ¥1,456 million from the end of the previous fiscal
year, due mainly to an increase in work in process (up ¥2,110 million compared to the end of the previous fiscal
year) and an increase in raw materials and supplies (up ¥1,718 million compared to the end of the previous
fiscal year), despite a decrease in cash and deposits (down ¥2,044 million compared to the end of the previous
fiscal year). Total non-current assets decreased by ¥134 million from the end of the previous fiscal year due todecreases in property, plant and equipment (down ¥25 million compared to the end of the previous fiscal year)
and intangible assets (down ¥111 million compared to the end of the previous fiscal year) as a result ofrelatively limited investment for the first quarter of FY 2019.
Total liabilities amounted to ¥74,172 million, up ¥1,907 million from the end of the previous fiscal year.
This was attributable primarily to an increase in short-term loans payable (up ¥2,183 million compared to theend of the previous fiscal year) and an increase in accrued expense-salary (up ¥867 million compared to the endof the previous fiscal year), which offset the decrease in income taxes payable (down ¥1,304 million comparedto the end of the previous fiscal year).
Total net assets amounted to ¥30,129 million, down ¥585 million from the end of the previous fiscal year.
This was due primarily to a decrease in retained earnings (down ¥477 million compared to the end of theprevious fiscal year) as a result of cash dividend payment and other factors. As a result, the equity ratio stood at
28.4%.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Regarding financial results for the first quarter of FY 2019, temporary impacts from factors such as adecrease in net sales are expected through the second quarter against the consolidated financial results forecast
announced on May 10, 2019, due to a delay in shipments of some products as a result of responses toinappropriate quality issues related to the aircraft interiors business and the aircraft seat business. However,since these have been no incidents that would develop into the cancellation of orders or a large-scale recall,financial results forecast for the fiscal year ending March 31, 2020 remains unchanged.
In addition, the exchange rate assumed for the consolidated financial results forecast is unchanged at ¥105
per US$1 at the present time.

42. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Thousand yen)
As of March 31, 2019
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
Advances received
Accrued expense-salary
Provision for loss on construction contracts
Provision for loss related to quality
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Liability for employee retirement benefits
Provision for loss on compensation
Other
Total non-current liabilities
Total liabilities

5

As of June 30, 20195,822,330
22,571,490
2,240,670
30,282,883
16,203,864
3,484,320(3,388)80,602,172

3,778,002
21,033,655
1,715,367
32,393,606
17,922,422
5,221,031(5,708)82,058,378

13,988,321
1,750,249
6,640,107
22,378,679
102,980,852

13,962,439
1,639,221
6,642,324
22,243,985
104,302,364

8,821,292
8,910,255
17,404,112
2,300,000
1,465,270
10,675,352
1,696,645
3,781,190
67,8174,434,703
59,556,639

9,661,207
8,856,761
19,587,343
1,600,000
161,081
11,007,755
2,563,945
3,452,675
4,007,211
60,897,983

3,700,000
7,070,783
921,541
1,016,411
12,708,736
72,265,376

4,100,000
7,067,613
918,910
1,187,923
13,274,446
74,172,430

(Thousand yen)
As of March 31, 2019
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, 2019

5,359,893
4,309,484
20,413,755(30,968)
30,052,165

5,359,893
4,309,484
19,936,170(30,968)
29,574,580

166,007
50,597
121,844

128,851
148,320(38,907)(217,091)(209,456)

121,358
541,951
30,715,475
102,980,852

28,807526,545
30,129,933
104,302,364

(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 2018

The first quarter of FY 201922,117,737
18,337,383
3,780,353
2,323,457
1,456,896

18,762,821
16,265,199
2,497,621
2,102,782
394,839

7,317
3,272
266,853

11,019
3,948
-

7,283

-

47,557
5,005
337,290

20,00053,437
4,187
92,592

98,285-99,490202,568-

5,615

53,14332,770184,200
1,609,987

5,259
63,567
376,501
110,930

78,99878,9981,530,988
947,947(356,004)
591,943
939,044

6,103
35,33541,43869,491
118,486(136,782)(18,296)
87,788(42,461)

28,870981,506

58,917

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
methodInsurance income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodCompensation expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on disposal of non-current assets
Loss related to quality
Total extraordinary loss
Income before taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Net income (loss) attributable to non-controllingshareholders
Net income 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 2018
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

8

The first quarter of FY 2019

939,044

87,78814,503(193,229)
171,516
13,691(37,156)
97,722(180,348)
7,634

(506)

-

5,975
945,020(112,147)(24,359)

966,411(33,633)(21,391)

9,274

(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Notes in the case of significant changes in shareholders’ equity)
There is no relevant information.
(Changes in accounting policies)
The first quarter of FY 2019(from April 1, 2019 to June 30, 2019)(Changes in accounting policies)
Overseas consolidated subsidiaries which adopt the International Financial Reporting Standards (IFRS)
have adopted IFRS 16 Leases from the first quarter of FY 2019.
The impact of the adoption of this accounting standard on quarterly consolidated financial statements isminor.

9

(Segment information, etc.)[Segment information]
I. 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)
IncomeReportable segments total
Income of Others
Ordinary income in the Quarterly Consolidated Statement of
IncomeAmount3. Matters on impairment loss on non-current assets and goodwill by reportable segment
There is no relevant information.

10

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

II. For the first quarter of FY 2019
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

13,815,314

2,114,458

1,347,409

1,485,636

18,762,818

2

18,762,821

167,142

35,1906,788

22,851

231,972

27,524259,496

13,982,456
112,948

2,149,648(28,865)

1,354,197(48,929)

1,508,488
76,08018,994,791
111,234

27,526(303)

19,022,318
110,930(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)
IncomeReportable segments total
Income of Others
Ordinary income in the Quarterly Consolidated Statement of
IncomeAmount3. Matters on impairment loss on non-current assets and goodwill by reportable segment
There is no relevant information.

11

111,234(303)
110,930