Consolidated Financial Results
for the Third Quarter of the Fiscal Year 2020
Ending March 31, 2021
[Japanese GAAP]
February 5, 2021

Company name: JAMCO Corporation
Stock exchange listing: Tokyo Stock Exchange
Stock Exchange Code: 7408
URL: https://www.jamco.co.jp/
Representative: Harutoshi Okita, President & CEO
Contact: Kentaro Goto, Director & Managing Executive Officer
Phone: +81-42-503-9145
The date of filing quarterly securities report: February 8, 2021
The start date of payout of dividend: —Availability of supplementary briefing material on quarterly financial results: None
Schedule of quarterly financial results briefing session: None
(Amounts are rounded down to the nearest million yen.)
1. Consolidated Operating Results for the Third Quarter of the Fiscal Year 2020 (from April 1, 2020 to
December 31, 2020)(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 third quarter
Million yen%
Million yen%
Million yen%
ofFiscal year 2020
38,120(41.7)(7,096)(8,086)
Fiscal year 201965,3375.5
1,174(57.5)
786(70.5)(Note) Comprehensive income: The third quarter of fiscal year 2020: ¥(6,435) million [-%]The third quarter of fiscal year 2019: ¥230 million [(87.1)%]

For the third quarterof
Fiscal year 2020
Fiscal year 2019

Net income per share

Diluted net income
per share

Yen

Yen

(239.19)
12.67-(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

As of December 31, 2020
106,625
23,146
As of March 31, 2020
120,184
30,373(Reference) Equity: As of December 31, 2020: ¥22,850 million
As of March 31, 2020: ¥29,844 million

21.4
24.8

Million yen%(6,416)339(78.9)

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

2ndquarter-end
Yen

3rd
quarter-end
Yen

Year-end
Yen

Fiscal year 2019
0.00
Fiscal year 2020
0.00
Fiscal year 2020
(Planned)(Note) Revision to the plan of dividend distribution announced most recently: None

Total
Yen

Yen

20.00

20.00

0.00

0.00

3. Consolidated Financial Results Forecast for the Fiscal Year 2020 (from April 1, 2020 to March 31, 2021)(%: Changes from the previous fiscal year)
Net income
attributable to
Net income
Net sales
Operating income
Ordinary income
shareholders ofper share
parent company
Million yen% Million yen% Million yen%

Million yen

Full year
58,400 (36.2) (10,200)- (11,100)(8,800)(Note) Revision to the forecast of consolidated financial results announced most recently: None

%

Yen

-

(328.05)* Notes:(1) Changes in significant subsidiaries during this quarter of the fiscal year 2020: 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 December 31, 2020: 26,863,974 shares
As of March 31, 2020: 26,863,974 shares
2) Number of treasury stock:
As of December 31, 2020: 38,932 shares
As of March 31, 2020: 38,932 shares
3) Average number of common shares outstanding:
3rd quarter of FY 2020: 26,825,042 shares
3rd quarter of FY 2019: 26,825,082 shares

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

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review ........................ 2(1) Explanation of Operating Results ................................................................................................. 2(2) Explanation of Financial Position................................................................................................. 5(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information. 5
2. Quarterly Consolidated Financial Statements and Primary Notes...................................................... 6(1) Quarterly Consolidated Balance Sheets ........................................................................................ 6(2) Quarterly Consolidated Statements of Income and Comprehensive Income .................................. 8
Quarterly Consolidated Statements of Income .............................................................................. 8
Quarterly Consolidated Statements of Comprehensive Income ..................................................... 9(3) Notes to Quarterly Consolidated Financial Statements................................................................ 10(Notes on going concern assumption) .................................................................................... 10(Notes in the case of significant changes in shareholders’ equity)........................................... 10(Additional information) ................................................................................................... ....10(Quarterly Consolidated Statements of Income) ..................................................................... 10(Segment information, etc.) ................................................................................................... 111

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the third quarter of FY 2020, economies around the world were severely impacted by restrictions on
movement of people and sluggish economic activities due to the global spread of COVID-19. Although COVID19 vaccination has started mainly in developed countries, there is no sign of an end to the infection and economic
recovery remains challenging. Under these circumstances, the dollar-yen exchange rate moved in the directionof yen appreciation within the range of ¥109 to ¥103 per US$1.
In the air transportation industry, the business environment has deteriorated significantly due to unprecedented
flight reductions and cancellations as a result of the global COVID-19 pandemic, and airlines have been forced
to reduce their workforce drastically. While flights are slowly resuming along with the resumption of economic
activities with various COVID-19 countermeasures taken by airlines, the situation remains challenging. As foraircraft manufacturers too, both Boeing and Airbus are substantially reducing production due to the sharp decline
in demand for air transportation.
Under this situation, in which the end of the infection remains unclear, the Group has promoted businessprocess reforms and measures to enhance the efficiency of its production system on a company-wide level in
preparation for a future recovery in demand for air transportation, aiming to improve quality and profitability,
while striving to reduce cost through reduction in workforce, limiting investment, and working to reorganize
production bases, under the assumption that the current harsh business environment will continue for some time.
In addition, we thoroughly enforced COVID-19 countermeasures, while working to reduce physical contact
between our employees by adopting remote work, shift work and the dispersion of work areas at the workplace,and flexibly responded to the sudden drop in workload through measures such as temporary leave of employees.
In the aircraft interiors business and the aircraft seat business, we carried out an urgent review of the
production plan and reorganized production bases, in response to the sudden drop in air transportation demand.
We also worked to develop products to ensure a clean and hygienic cabin in order to relieve the anxiety felt bypassengers onboard.
The amount of orders received decreased significantly compared to the same period of the previous fiscal year
due to drastic production cuts by aircraft manufacturers as a result of a sharp drop in air transportation demandand partial postponement and cancellation of orders from airlines.
In the aircraft components business, we took initiatives to improve productivity, while proceeding with inhouse production of interiors-related and other parts by applying the processing technologies we haveaccumulated over the years. We are also proceeding with the development of lightweight aircraft components
using thermoplastic CFRP.
In the aircraft maintenance business, we aimed to establish a business base capable of generating stable profits
by continuing with initiatives to ensure flight safety and enhance quality, while also endeavoring to acquire orders
for aircraft maintenance for airlines and government and municipal offices.
As a result, on a consolidated basis, during the third quarter of FY 2020, the Company posted net sales of¥38,120 million (down ¥27,217 million compared to the same period of the previous fiscal year), operating lossof ¥7,096 million (an operating income of ¥1,174 million in the same period of the previous fiscal year), ordinary
loss of ¥8,086 million (an ordinary income of ¥786 million in the same period of the previous fiscal year), andnet loss attributable to shareholders of parent company of ¥6,416 million (a net income attributable toshareholders of parent company of ¥339 million in the same period of the previous fiscal year).
Provision for loss on construction contracts of ¥4,881 million for construction to be completed in or after thequarterly fourth quarter of FY 2020 was recognized as of December 31, 2020. The impact of this provision forloss on construction contracts on income (loss) for the quarterly third quarter of FY 2020 was an increase of ¥153
million in cost of sales (provision for loss on construction contracts as of September 30, 2020 was ¥4,728 million)
and, for the cumulative third quarter of FY 2020, an increase of ¥1,273 million in cost of sales (provision for loss
on construction contracts at the end of the previous fiscal year was ¥3,607 million).
Selling, general and administrative expenses, non-operating income (expenses), and extraordinary income2

(loss) are as follows:
Selling, general and administrative expenses were ¥4,926 million (a decrease of ¥1,236 million compared tothe same period of the previous fiscal year), due mainly to decreases in experimentation and research expenses,
personnel expenses, warranty expenses, and sales commissions.
In terms of non-operating income (expenses), an expense of ¥989 million was reported due mainly to anincrease in foreign exchange losses resulting from the appreciation of the yen in the foreign exchange market
from the end of the previous fiscal year and an increase in compensation expenses (an expense of ¥388 million
in the same period of the previous fiscal year).
As for extraordinary income (loss), although subsidy income, such as subsidies for employment adjustment
due to the temporary leave of employees, of ¥626 million was recognized, a loss of ¥1,005 million was reported
due mainly to recognizing loss of ¥1,253 million related to COVID-19, which consists of running costs including
fixed costs resulting from the temporary leave of employees, and recognizing extra retirement payments of ¥350
million for employees who retired in connection with the consolidation of overseas production bases in order to
optimize the scale of business due to sluggish air passenger demand resulting from the spread of COVID-19 (aloss of ¥215 million in the same period of the previous fiscal year).

3

Business performance by segment is as follows.
[Aircraft Interiors Business]
In the aircraft interiors business, net sales decreased from the same period of the previous fiscal year, as salesof cabin retrofit kits and spare parts for airlines decreased due to a decrease in aircraft operations, in addition toa decrease in shipments of galleys and lavatories, as a result of aircraft manufacturers being forced to reduce
production and change production schedules due to the impact of the spread of COVID-19. Meanwhile, anordinary loss was reported due mainly to the decrease in net sales.
As a result, the aircraft interiors business posted net sales of ¥24,880 million (down ¥18,855 million comparedto the same period of the previous fiscal year) and ordinary loss of ¥5,417 million (ordinary income of ¥2,219
million in the same period of the previous fiscal year).
[Aircraft Seat Business]
In the aircraft seat business, net sales decreased from the same period of the previous fiscal year due to changes
to the delivery dates and some cancellations by customers as a result of the impact of the spread of COVID-19.
Meanwhile, an ordinary loss was reported due mainly to a decrease in net sales and shipments of some
unprofitable programs.
As a result, the aircraft seat business posted net sales of ¥6,175 million (down ¥5,438 million compared to thesame period of the previous fiscal year) and ordinary loss of ¥2,458 million (ordinary loss of ¥1,748 million in
the same period of the previous fiscal year).
[Aircraft Components Business]
In the aircraft components business, despite robust shipments of heat exchangers and other equipment mainly
related to defense contracts, net sales decreased from the same period of the previous fiscal year, due to a decreasein shipments of CFRP structure parts and aircraft engine parts for commercial aircraft products, resulting fromaircraft manufacturers being forced to reduce production and change production schedules as a result of the
impact of the spread of COVID-19. Meanwhile, an ordinary loss was reported due mainly to the decrease in net
sales.
As a result, the aircraft components business posted net sales of ¥2,756 million (down ¥1,369 million
compared to the same period of the previous fiscal year) and ordinary loss of ¥212 million (ordinary loss of ¥182
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
reflecting a decline in the number of shipments of some programs compared to the favorable increase in aircraft
maintenance during the same period of the previous fiscal year, as well as a decrease in orders received fromairlines for wheels, brakes, and other items in equipment maintenance due to the impact of the spread of COVID19. Meanwhile, ordinary income decreased from the same period of the previous fiscal year due mainly to thedecrease in net sales.
As a result, the aircraft maintenance business posted net sales of ¥4,307 million (down ¥1,553 million
compared to the same period of the previous fiscal year) and ordinary income of ¥0 million (down ¥500 million
compared to the same period of the previous fiscal year).
[Others]
The Others segment includes the businesses of the consolidated subsidiary Orange JAMCO Corporation, andwe were able to make steady progress mainly in inter-segment transactions, including assistance work in theaircraft interiors business.
As a result, the Others segment posted net sales of ¥0 million (down ¥0 million compared to the same periodof the previous fiscal year) and ordinary income of ¥0 million (ordinary loss of ¥2 million in the same period of
the previous fiscal year).
4(2) Explanation of Financial Position[Assets, liabilities and net assets]
Total assets as of December 31, 2020 amounted to ¥106,625 million, down ¥13,558 million from the end of
the previous fiscal year. Of such, total current assets decreased by ¥15,086 million from the end of the previous
fiscal year, due mainly to a decrease in notes and accounts receivable – trade (down ¥11,435 million comparedto the end of the previous fiscal year) and a decrease in cash and deposits (down ¥3,417 million compared to theend of the previous fiscal year), despite an increase in raw materials and supplies (up ¥2,683 million comparedto the end of the previous fiscal year). Total non-current assets increased by ¥1,528 million from the end of theprevious fiscal year due to an increase in investments and other assets (up ¥2,724 million compared to the end of
the previous fiscal year), despite a decrease in property, plant and equipment (down ¥954 million compared tothe end of the previous fiscal year) and a decrease in intangible assets (down ¥242 million compared to the endof the previous fiscal year) as a result of relatively limited investment for the third quarter of FY 2020.
Total liabilities amounted to ¥83,479 million, down ¥6,331 million from the end of the previous fiscal year.
This was attributable primarily to a decrease in notes and accounts payable – trade (down ¥6,883 million
compared to the end of the previous fiscal year), a decrease in electronically recorded obligations – operating(down ¥4,892 million compared to the end of the previous fiscal year), a decrease in advances received (down¥2,330 million compared to the end of the previous fiscal year), and a decrease in accrued expense–salary (down¥1,053 million compared to the end of the previous fiscal year), which offset the increase in short-term loans
payable (up ¥9,622 million compared to the end of the previous fiscal year).
Total net assets amounted to ¥23,146 million, down ¥7,226 million from the end of the previous fiscal year.
This was due primarily to a decrease in retained earnings (down ¥6,952 million compared to the end of theprevious fiscal year) as a result of reporting a net loss attributable to shareholders of parent company, cash
dividend payment, and other factors. As a result, the equity ratio stood at 21.4%.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
The consolidated financial results forecast for FY 2020 remains unchanged from that disclosed in the “Noticeof the Full Year Consolidated Financial Results Forecast and Plan of Dividend Distribution (No Dividend), andthe Recording of Extraordinary Income and Extraordinary Loss” announced on November 6, 2020.
The exchange rate for the quarterly fourth quarter of FY 2020 assumed for the consolidated financial results
forecast remains unchanged from ¥105 per US$1.

5

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Thousand yen)
As of March 31, 2020
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
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

6

As of December 31, 2020

8,690,990
31,898,770
1,422,398
30,328,978
20,500,595
4,899,335(8,504)
97,732,564

5,273,506
20,463,541
1,816,673
28,838,138
23,184,491
3,091,452(22,138)
82,645,666

13,766,040
1,999,120
6,686,819
22,451,980
120,184,545

12,811,678
1,756,932
9,411,650
23,980,260
106,625,926

11,394,529
9,551,128
36,386,966
1,200,000
302,2088,644,784
1,642,946
3,607,749
4,219,469
76,949,782

4,510,872
4,658,869
46,009,668
1,000,000
30,756
6,314,465
589,352
4,881,466
3,273,426
71,268,878

3,500,000
7,282,672
987,196
1,091,394
12,861,263
89,811,045

3,000,000
7,386,194
959,437
864,695
12,210,327
83,479,206

(Thousand yen)
As of March 31, 2020
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
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 December 31, 2020

5,359,893
4,309,484
20,483,085(31,175)
30,121,288

5,359,893
4,318,925
13,530,289(31,175)
23,177,933

104,663(41,674)

147,321(176,353)(339,306)(298,134)(276,318)
528,529
30,373,500
120,184,545(327,165)
295,952
23,146,720
106,625,926

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Third Quarter of the Fiscal Year (from April 1 to December 31)(Thousand yen)
The third quarter of FY 2019

The third quarter of FY 2020

65,337,304
57,999,844
7,337,459
6,162,790
1,174,669

38,120,127
40,290,934(2,170,807)
4,926,018(7,096,825)

37,9445,300

10,612
1,949

5,496

14,241

50,838107,182
38,976
245,739

82,18936,72961,027
206,749

314,669
91,55274,653
152,877
633,752
786,655

299,459
578,914217,741
100,358
1,196,474(8,086,550)

60,00060,000626,263626,263

18,242
13,306244,243
275,793
570,862
60,319149,717
210,037
360,824
20,83627,0171,253,601
350,984
1,631,603(9,091,889)
5,026(2,734,062)(2,729,036)(6,362,853)
53,441

339,987(6,416,294)

Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
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
Compensation expenses
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Insurance income
Subsidy income
Total extraordinary income
Extraordinary loss
Loss on disposal of non-current assets
Loss on disaster
Loss related to quality
Loss related to COVID-19
Extra retirement payments
Total extraordinary loss
Income (loss) before taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income (loss)
Net income attributable to non-controlling interests
Net income (loss) attributable to shareholders of parent
company

8Quarterly Consolidated Statements of Comprehensive Income
Third Quarter of the Fiscal Year (from April 1 to December 31)(Thousand yen)
The third quarter of FY 2019

The third quarter of FY 2020

360,824(6,362,853)(1,984)(68,199)(82,630)
22,902(129,911)
230,91242,658(156,520)
41,172(72,689)(6,435,543)

219,017(6,467,443)

11,89531,900Net income (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Adjustment for employee retirement benefits
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to shareholders ofparent company
Comprehensive income attributable to non-controllinginterests9(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Notes in the case of significant changes in shareholders’ equity)
There is no relevant information.
(Additional information)
The third quarter of FY 2020
(from April 1, 2020 to December 31, 2020)
The Group makes accounting estimates for items including impairment loss on non-current assets
and recoverability of deferred tax assets, based on information available at the time of preparation of
the quarterly consolidated financial statements.
There are no significant changes in assumptions, including the timing of the end of COVID-19, thatwere included in (Additional information) in our quarterly securities report for the quarterly second
quarter of FY 2020.
(Quarterly Consolidated Statements of Income)Subsidy income¥626,263 thousand in subsidy income, such as subsidies for employment adjustment due to the temporary leaveof employees, has been recognized under extraordinary income.
Loss related to COVID-19¥1,253,601 thousand in loss related to COVID-19 has been recognized under extraordinary loss for running costs
including fixed costs resulting from the temporary leave of employees, as operations significantly declined due tothe global spread of COVID-19 and a declaration of a state of emergency issued by the government.
Extra retirement payments¥350,984 thousand in extra retirement payments for employees who retired in connection with the consolidationof overseas production bases in order to optimize the scale of business due to sluggish passenger demand resulting
from the spread of COVID-19 has been recognized under extraordinary loss.

10

(Segment information, etc.)[Segment information]
I. For the third quarter of FY 2019
1. Information on net sales and income (loss) by reportable segment(Thousand yen)

Net sales
Net sales to outside
customers
Inter-segment net sales ortransfers
Total
Segment income (loss)

Aircraft
Interiors
Business

Reportable segment
Aircraft
Aircraft
Aircraft Seat
Components MaintenanceBusiness
Business
Business

43,735,676

11,614,498

4,125,973

5,861,126

65,337,275

29

65,337,304

391,219

151,831

28,60240,326

611,980

82,089694,069

44,126,895
2,219,480

11,766,330(1,748,297)

4,154,576(182,804)

5,901,452
501,126

65,949,255
789,505

82,118(2,849)66,031,374
786,655

Total

Others(Note)

Total(Note) The Others segment includes the businesses of affiliate Orange JAMCO Corporation. Orange JAMCO
Corporation is a special-purpose subsidiary, dedicated to promoting the employment of people withdisabilities and provides assistance work in the Company’s factories, which is one of the corporate social
responsibilities.
2. Differences between the total amount of income (loss) of reportable segments and the amounts in the Quarterly
Consolidated Statement of Income and the major details of such differences(Matters relating to adjustment of differences)(Thousand yen)
IncomeReportable segments total
Income of Others
Ordinary income in the Quarterly Consolidated Statement of
IncomeAmount3. Information on impairment loss on non-current assets and goodwill by reportable segment
There is no relevant information.

11

789,505(2,849)786,655

II. For the third quarter of FY 2020
1. Information on net sales and income (loss) by reportable segment(Thousand yen)
Aircraft
Interiors
Business
Net sales
Net sales to outside
customers
Inter-segment net sales ortransfers
Total
Segment income (loss)

Reportable segment
Aircraft
Aircraft
Aircraft Seat
Components MaintenanceBusiness
Business
Business

Total

Others(Note)

Total

24,880,363

6,175,986

2,756,163

4,307,610

38,120,124

3

38,120,127

341,111

166,003

2,257

11,948521,320

81,132602,453

25,221,474(5,417,118)

6,341,990(2,458,147)

2,758,421(212,457)

4,319,559
599

38,641,444(8,087,124)

81,136574

38,722,581(8,086,550)(Note) The Others segment includes the businesses of affiliate Orange JAMCO Corporation. Orange JAMCO
Corporation is a special-purpose subsidiary, dedicated to promoting the employment of people withdisabilities and provides assistance work in the Company’s factories, which is one of the corporate social
responsibilities.
2. Differences between the total amount of income (loss) of reportable segments and the amounts in the Quarterly
Consolidated Statement of Income and the major details of such differences(Matters relating to adjustment of differences)(Thousand yen)
IncomeReportable segments total
Income of Others
Ordinary income in the Quarterly Consolidated Statement of
IncomeAmount3. Information on impairment loss on non-current assets and goodwill by reportable segment
There is no relevant information.

12(8,087,124)574(8,086,550)