Consolidated Financial Results
for the Fiscal Year 2018
Ended March 31, 2019
[Japanese GAAP]May 10, 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
Scheduled date of general meeting of shareholders held: June 26, 2019
The start date of payout of dividend: June 27, 2019
Submission date of securities report scheduled: June 26, 2019
Availability of supplementary briefing material on financial results: Yes
Schedule of financial results briefing session: Yes (for institutional investors)(Amounts are rounded down to the nearest million yen.)
1. Consolidated Operating Results for the Fiscal Year 2018 (from April 1, 2018 to March 31, 2019)(1) Consolidated Operating Results(%: Changes from the previous fiscal year)
Net sales

Operating income

Ordinary income

For the year ended
Million yen%
Million yen%
Million yen%
March 31, 201984,068
8.1
4,321
(3.2)
3,290
(6.1)
March 31, 2018
77,791
(4.9)
4,466
109.5
3,504
172.5
(Note) Comprehensive income: Year ended March 31, 2019: ¥2,071 million [9.6%]
Year ended March 31, 2018: ¥1,890 million [103.7%]
Net income per
share

Diluted net
income per
share

Rate of returnon equity

Net income attributable
to shareholders ofparent company
Million yen
%

1,910
1,681

Ordinary
income to total
assetsFor the year ended
Yen
Yen
%
%
March 31, 2019
71.23
6.5
3.3
March 31, 2018
62.69
6.0
3.7
(Reference) Equity in earnings (losses) of affiliates: Year ended March 31, 2019: ¥(52) million
Year ended March 31, 2018: ¥37 million(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

13.6
65.8

Operatingincome to net
sales
%

5.1
5.7

Net assets per share

Million yen%

Yen

As of March 31, 2019
102,980
30,715
As of March 31, 2018
94,45629,553(Reference) Equity: As of March 31, 2019: ¥30,173 million
As of March 31, 2018: ¥28,752 million

29.3
30.4

1,124.82
1,071.84

(3) Consolidated Cash Flows
Cash flows
from operating
activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Million yen

9,365
3,971

(1,944)(2,810)(5,828)
(460)

4,046
2,399

For the year ended
March 31, 2019
March 31, 2018

Cash and cash
equivalents at theend of period

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

2nd
quarter-end
Yen

3rd
quarter-end
Yen

Yen

Yen

-

0.00
0.00

-

20.00
20.00

20.00
20.00

-

0.00

-

25.00

25.00

Fiscal year 2017
Fiscal year 2018
Fiscal year 2019
(Planned)Year-end

Total

Dividends to
Dividend
payout ratio
net assets(consolidated) (consolidated)
Million yen
%
%
Total
dividends

536
536

31.9
28.1

1.9
1.8

25.5

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 sales
Million yen

Full year

92,100Operating income% Million yen

9.6

4,310

Ordinary income% Million yen

(0.3)

3,850

Net income
attributable toshareholders ofparent company%

Million yen

17.0

2,630

Net income
per share
%

37.6

Yen

98.04

* Notes:(1) Changes in significant subsidiaries during the fiscal year 2018 (Changes in specified subsidiaries resulting inchange in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(3) Number of common shares issued
1) Number of common shares outstanding (including the number of treasury stock):
As of March 31, 2019: 26,863,974 shares
As of March 31, 2018: 26,863,974 shares
2) Number of treasury stock:
As of March 31, 2019: 38,832 shares
As of March 31, 2018: 38,762 shares
3) Average number of common shares outstanding:
For the year ended March 31, 2019: 26,825,183 shares
For the year ended March 31, 2018: 26,825,217 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year 2018 (April 1, 2018 to March 31, 2019)(1) Non-consolidated Operating Results(%: indicates changes from the previous corresponding period.)
Net sales
Operating income
Ordinary income
Net income
For the year ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2019
76,447
15.5
3,104
4.2
2,537
9.9
2,034
29.1
March 31, 2018
66,183
(3.1)
2,979
33.6
2,309
38.0
1,576
22.6
Net income
per share
For the year ended
March 31, 2019
March 31, 2018

Diluted net income
per share
Yen

Yen

75.85
58.77

-

(2) Non-consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Net assets per share

Million yen%

Yen

91,132
29,300
As of March 31, 2019
As of March 31, 201882,016
27,836(Reference) Equity: As of March 31, 2019: ¥29,300 million
As of March 31, 2018: ¥27,836 million

32.2
33.9

1,092.26
1,037.68*Notes:*1. This document is an English translation of a statement written initially in Japanese. The Japanese original
document should be considered as the primary version.
*2. These consolidated financial results are outside the scope of audit 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 forward-looking statements herein are based on information currently available
to the Company and certain premises that the Company deems to be reasonable. Actual results may differ
significantly from these forecasts due to a wide range of factors. For the conditions that form the premises of theforecasts, please refer to “Future Outlook” on page 5 of the Attachment.
The Company intends to hold a briefing session for institutional investors on May 21, 2019. The materials
distributed at the briefing session are scheduled to be posted on the Company’s corporate website.

Table of Contents
1. Overview of Business Results, etc. ................................................................................................................ 2(1) Overview of Business Results for the Fiscal Year Under Review................................................................ 2(2) Overview of Financial Position for the Fiscal Year Under Review ........................................................... 4(3) Overview of Cash Flows for the Fiscal Year Under Review ...................................................................... 4(4) Future Outlook ............................................................................................................................................. 5
2. Basic Approach to the Selection of Accounting Standards .............................................................................. 5
3. Consolidated Financial Statements and Primary Notes .................................................................................... 7(1) Consolidated Balance Sheets ...................................................................................................................... 7(2) Consolidated Statements of Income and Comprehensive Income ............................................................. 9(3) Consolidated Statements of Changes in Equity ........................................................................................ 11(4) Consolidated Statements of Cash Flows .................................................................................................... 13(5) Notes to Consolidated Financial Statements ............................................................................................ 15(Notes on going concern assumption) ................................................................................................. 15(Changes in presentation) .................................................................................................................... 15(Additional information) ..................................................................................................................... 15(Consolidated Statements of Income) ................................................................................................. 15(Segment information, etc.) ................................................................................................................. 17(Per share information) .......................................................................................................................... 24(Significant subsequent events) ............................................................................................................. 24

1

1. Overview of Business Results, etc.
(1) Overview of Business Results for the Fiscal Year Under Review
During FY 2018, the overall global economy remained firm, as the U.S. economy steadily grew, and theeconomies in Japan and the euro-zone also continued to recover moderately, despite the expected slowdown in
the Chinese economy due to the growing impact of trade friction between the U.S. and China. In the foreignexchange market, the dollar-yen exchange rate generally showed a trend of a yen depreciation, moving within
the range of the upper ¥105 to the lower ¥114 per US$1, amid uncertainties about the future due mainly to thetrends 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 new flight routes, enhancing
passenger cabin services, and entering into LCC business as a result of growing global demand for airtransportation. Backed by rising aircraft demand, aircraft manufacturers, both Boeing and Airbus, delivered arecord number of aircraft in 2018. With plans to increase production of some models, along with progress
toward the development of new models aiming at improved fuel efficiency, the aircraft market is expected toremain robust. Furthermore, historic realignment movements, such as strategic acquisitions of regional jet
manufacturers by Boeing and Airbus, are progressing.
Under such circumstances, in the aircraft interiors business, the Group worked to improve production
efficiency, while proceeding with the development of lavatories for Boeing 777X. We also embarked on thedevelopment of galleys for Boeing 777X upon receipt of orders from major airlines.
In the aircraft seat business, we worked to further expand order receipt following order receipt of standard
seats for KLM Royal Dutch Airlines, while conducting initiatives to improve production efficiency and reducecost. We also started shipment of first class seats for a major airline.
In the aircraft components business, we promoted initiatives to improve productivity, while proceeding withinitiatives to increase production of aircraft engine parts. We also began in-house production of interiors andseat parts, applying the metal processing technologies we have accumulated over the years.
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. We also conducted
capital participation in MRO Japan Co., Ltd. of the ANA Group, in order to expand the business fields ofaircraft maintenance.
As a result, on a consolidated basis, during FY 2018, the Company posted net sales of ¥84,068 million (up¥6,276 million compared to the previous fiscal year), operating income of ¥4,321 million (down ¥144 million
compared to the previous fiscal year), ordinary income of ¥3,290 million (down ¥213 million compared to theprevious fiscal year) and net income attributable to shareholders of parent company of ¥1,910 million (up ¥229
million compared to the previous fiscal year).
Provision for loss on construction contracts of ¥3,781 million for construction to be completed in or after
the next fiscal year was recognized at the end of FY 2018. The impact of this provision for loss on construction
contracts on income (loss) for the fourth quarter of FY 2018 was an increase of ¥842 million in cost of sales(provision for loss on construction contracts as of December 31, 2018 was ¥2,938 million) and, for FY 2018, an
increase of ¥1,714 million in cost of sales (provision for loss on construction contracts at the end of FY 2017was ¥2,066 million).
Selling, general and administrative expenses were ¥9,321 million (an increase of ¥633 million compared tothe previous fiscal year) due mainly to increases in research and development expenses and sales commissions.
In terms of non-operating income (expenses), an expense of ¥1,030 million was reported due mainly torecognition of compensation expenses, despite an increase in foreign exchange gains (an expense of ¥962
million in the previous fiscal year).
As for extraordinary income (loss), a loss of ¥263 million was reported due mainly to loss related to quality
and loss on disposal of non-current assets (a loss of ¥49 million in the previous fiscal year).
The inappropriate inspections at the Company and Miyazaki JAMCO Corporation, to which the Company
outsources production, were announced on March 26, 2019. After these inappropriate inspections came to light,2

we immediately confirmed the safety and promptly took measures. We also apologized to our customers andexplained to them that there was no direct impact on product quality and safety, and we are currently working
to obtain their understanding. In addition, we are proceeding with an investigation, covering Group companies,
to identify the cause and verify the validity of the preventive measures through the establishment of an in-house
quality and service improvement team and the Special Investigation Committee comprising third parties who
do not have a relationship of interest with the Company.
The Group takes these quality issues seriously and will make efforts to raise our “quality first” awareness,while earnestly undertaking corrective/preventive measures based on thorough analysis of the cause.
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 an increase in sales of the passenger cabin modification kit and spare parts, and shipments of reargalleys for Airbus A350 and lavatories for flight tests of Boeing 777X, which is under development by Boeing,
despite the impact of a decrease in shipments of galleys for the current Boeing 777s that are being replaced byBoeing 777X. Meanwhile, although ordinary income was somewhat impacted by the increase in net sales, it
was affected by a decrease in shipments of galleys for Boeing 777 and an increase in initial costs for some
programs, and by the increase in selling, general and administrative expenses.
As a result, the aircraft interiors business posted net sales of ¥56,869 million (up ¥5,876 million comparedto the previous fiscal year) and ordinary income of ¥6,113 million (down ¥680 million compared to theprevious fiscal year).
[Aircraft Seat Business]
In the aircraft seat business, net sales decreased from the previous fiscal year due mainly to thepostponement of shipments of some construction to the next fiscal year and thereafter. Although ordinary
income (loss) was affected by the increase in costs, mainly reflecting an increase in the cost of some programs,
the increase in research and development expenses, and recognition of compensation expenses, it improved
from the previous fiscal year due mainly to an improvement in profitability as a result of improved production
efficiency and a reaction to the impact of an increase in the initial costs of some programs in the previous fiscal
year.
As a result, the aircraft seat business posted net sales of ¥12,175 million (down ¥308 million compared tothe previous fiscal year) and ordinary loss of ¥3,143 million (ordinary loss of ¥3,641 million in the previous
fiscal year).
[Aircraft Components Business]
In the aircraft components business, despite a decrease in shipments of heat exchangers and other equipment
as a result of factors such as changes in delivery dates, net sales increased from the previous fiscal year due toan increase in shipments of aircraft engine parts. Meanwhile, ordinary income decreased due mainly to theimpact of a decrease in shipments of heat exchangers and other equipment, despite our efforts to improve
production efficiency.
As a result, the aircraft components business posted net sales of ¥6,597 million (up ¥284 million comparedto the previous fiscal year) and ordinary income of ¥110 million (down ¥105 million compared to the previous
fiscal year).
[Aircraft Maintenance Business]
In the aircraft maintenance business, despite a decrease in completed construction for aircraft maintenance,
net sales increased from the previous fiscal year due to continued solid performance of equipment maintenance.
Ordinary income increased due to initiatives to improve profitability, in addition to an increase in net sales.
As a result, the aircraft maintenance business posted net sales of ¥8,426 million (up ¥423 million compared3

to the previous fiscal year) and ordinary income of ¥210 million (up ¥70 million compared to the previous
fiscal year).
[Others]
The Others segment includes the businesses of the consolidated subsidiary Orange JAMCO Corporation,and mainly consisted of 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 compared to the previous fiscal
year) and ordinary loss of ¥0 million (ordinary loss of ¥4 million in the same period of the previous fiscal year).
(2) Overview of Financial Position for the Fiscal Year Under Review
Total assets as of March 31, 2019 amounted to ¥102,980 million, up ¥8,523 million from the end of theprevious fiscal year. Of such, total current assets increased by ¥7,890 million from the end of the previous fiscal
year, due mainly to an increase in work in process (up ¥3,272 million compared to the end of the previous fiscal
year), an increase in cash and deposits (up ¥1,988 million compared to the end of the previous fiscal year), an
increase in merchandise and finished goods (up 1,525 million compared to the end of the previous fiscal year),and an increase in raw materials and supplies (up 1,270 million compared to the end of the previous fiscal year).
Total non-current assets increased by ¥632 million from the end of the previous fiscal year as a result of anincrease in deferred tax assets (up ¥728 million compared to the end of the previous fiscal year) and proceedingwith investments such as purchase of metal molds for aircraft interiors and seat manufacture.
Total liabilities amounted to ¥72,265 million, up ¥7,362 million from the end of the previous fiscal year.
This was attributable primarily to an increase in advances received (up ¥4,624 million compared to the end of
the previous fiscal year), an increase in provision for loss on construction contracts (up ¥1,714 million
compared to the end of the previous fiscal year), an increase in electronically recorded obligations – operating(up ¥1,448 million compared to the end of the previous fiscal year), and an increase in notes and accounts
payable – trade (up ¥1,301 million compared to the end of the previous fiscal year) which offset the decrease inloans payable (down ¥4,235 million compared to the end of the previous fiscal year).
Total net assets amounted to ¥30,715 million, up ¥1,161 million from the end of the previous fiscal year.
This was due primarily to an increase in retained earnings (up ¥1,374 million compared to the end of theprevious fiscal year). As a result, the equity ratio stood at 29.3%.
(3) Overview of Cash Flows for the Fiscal Year Under Review
Cash and cash equivalents as of March 31, 2019 increased by ¥1,646 million compared to the end of theprevious fiscal year, as a result of the cash flows described below.
(Cash flows from operating activities)
During FY 2018, net cash provided by operating activities increased by ¥5,393 million compared to theprevious fiscal year, to a cash inflow of ¥9,365 million. This was mainly due to an increase in inflows from anincrease in notes and accounts payable - trade, an increase in provision for loss on construction contracts and anincrease in advances received.
(Cash flows from investing activities)
During FY 2018, net cash used in investing activities decreased by ¥866 million compared to the previous
fiscal year, to a cash outflow of ¥1,944 million. This was mainly due to a decrease in time deposits andproceeds from sales of investment securities, despite outflows from capital participation in MRO Japan Co.,Ltd.
(Cash flows from financing activities)
During FY 2018, net cash used in financing activities increased by ¥5,367 million compared to the previous
fiscal year, to a cash outflow of ¥5,828 million. The cash outflow was mainly because outflows fromrepayments of loans payable exceeded the proceeds from loans payable from financial institutions, and was also
due to cash dividends paid and other factors.

4(4) Future Outlook
The global economy faces growing uncertainties about the future, with fears of a global economic
slowdown from the issues surrounding Brexit along with concerns regarding the impact of trade friction
between the U.S. and China, despite continued strength in the global economy led by firm growth in the U.S.
economy. As for exchange fluctuations, there are concerns regarding the risk of sharp exchange fluctuations as
a result of strong risk aversion amid uncertainties about the future due to a slower pace of rate hikes in the U.S.,
trends in the economic policies of each country, and mounting geopolitical risks. In such a businessenvironment, we will keep in mind that the universal code of conduct of “commitment to quality first” and“compliance” is the foundation of the Company’s survival and development. At the same time, we will seek tocontinue growing beyond enhancement of the business base. To that end, we will strengthen ourcompetitiveness, driven by promotion of reform and rationalization of operational processes and investment for
the future, while aiming to become a company that is trusted by our customers and where employees can beproud of themselves by investing in and cultivating human resources to be in charge of corporate activities.
The Group will raise awareness of compliance and quality and improve operational flow with a view topreventing the recurrence of recent quality issues. By doing so, the Group will strengthen corporate power,
realize quality reform and enhance the control function while engaging in group management in close
collaboration with partner companies.
In the aircraft interiors business, although demand for large aircraft is expected to remain weak, the Groupwill continue initiatives to expand order receipt of aftermarket products, respond to the increase in monthly
aircraft production to 14 with regard to products for Boeing 787, respond to the increase in production ofgalleys for Airbus A350 as well as initiatives to promote development of products for Boeing 777X and reducecost.
In the aircraft seat business, we will strive to improve profitability through expanding order receipt ofstandard seats, responding to increased production, optimizing the supply chain, and improving production
efficiency. Although production at Miyazaki JAMCO Corporation has currently been suspended, the Group is
taking measures to minimize the impact on our business partners mainly by shifting orders to other production
bases of the Group. Miyazaki JAMCO Corporation will ensure that measures to prevent recurrence will betaken with a view to resuming production as soon as possible. Along with this, Miyazaki JAMCO Corporation
will take corrective measures such as fundamentally reviewing the governance structure, and will improve thecorporate culture in an effort to restore confidence in the Group.
In the aircraft components business, although production of CFRP structure parts for Airbus A380 is
expected to decrease, an increase in those for other Airbus aircraft and an increase in shipments of heatexchangers and other components are expected. We will work to expand order receipt of various products,
while pushing ahead with initiatives such as applying metal processing technologies to interior products andseat products.
In the aircraft maintenance business, we will advance efforts to expand aircraft maintenance for airlines andactivities to win orders for equipment maintenance by setting our sights on foreign customers as well on thebasis of ensuring flight safety and enhancing quality. By doing so, we will engage in high-value-added
maintenance operations by leveraging our technical capabilities.
In light of these circumstances, our outlook of consolidated operating results for FY 2019 calls for net salesof ¥92,100 million, operating income of ¥4,310 million, ordinary income of ¥3,850 million, and net income
attributable to shareholders of parent company of ¥2,630 million. The exchange rate assumed for the outlook is¥105 to US$1.

2. Basic Approach to the Selection of Accounting Standards
Taking into consideration the comparability of consolidated financial statements by term and thecomparability between companies, the Group’s policy is to prepare consolidated financial statements based onJapanese GAAP.
The Group plans to carefully consider the adoption of IFRS (International Financial Reporting Standards),
5

taking into account the circumstances in Japan and overseas.

6

3. Consolidated Financial Statements and Primary Notes(1) 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
Consumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Guarantee deposits
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

7

As of March 31, 2019

3,833,880
22,451,904
715,123
27,009,919
14,933,273
228,005
3,542,048(2,944)72,711,210

5,822,330
22,571,490
2,240,670
30,282,883
16,203,864
317,124
3,167,196(3,388)80,602,172

18,640,039(11,413,692)
7,226,347
9,915,596(8,067,128)
1,848,468
3,460,331
545,644(345,167)
200,476
381,764
6,577,176(5,854,146)
723,029
13,840,417

19,071,923(12,053,348)
7,018,575
10,246,336(8,160,499)
2,085,837
3,449,025
596,572(351,367)
245,204
90,544
7,380,799(6,281,666)
1,099,133
13,988,321

658,060
1,285,614
1,943,674

683,148
1,067,101
1,750,249

604,018
75,72787,222
5,162,538
32,118
5,961,625
21,745,718
94,456,929

552,301
66,942
84,6955,890,668
45,5006,640,107
22,378,679
102,980,852

(Thousand yen)
As of March 31, 2018
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accrued expenses
Income taxes payable
Accrued consumption taxes
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
Lease obligations
Provision for directors’ and auditors’ retirement
benefits
Provision for executive officers’ retirement benefits
Liability for employee retirement benefits
Provision for loss on compensation
Long-term accounts payable - other
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Accumulated adjustment for employee retirement
benefits
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

8

As of March 31, 2019

7,518,512
7,462,195
22,239,114
900,000
220,798
1,327,751
611,221117,085
6,051,066
1,604,173
2,066,719
2,183,620
52,302,258

8,821,292
8,910,255
17,404,112
2,300,000
249,535
1,427,419
1,465,270
99,794
10,675,352
1,696,645
3,781,190
67,8172,657,953
59,556,639

4,500,000
613,3083,700,000
641,442

184,006-

129,501
6,876,571
203,751
66,457
27,20912,600,807
64,903,066

7,070,783
921,541
322,265
52,703
12,708,736
72,265,376

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

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

177,595
72,818(46,134)

166,007
50,597
121,844(188,623)(217,091)

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

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

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Thousand yen)
FY 2018

FY 2017(From April 1, 2017 toMarch 31, 2018)

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 income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on disposal of non-current assets
Impairment loss
Loss related to quality
Total extraordinary loss
Income before taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Net income attributable to non-controlling shareholders
Net income attributable to shareholders of parent company

9(From April 1, 2018 toMarch 31, 2019)77,791,842
64,637,686
13,154,156
8,687,995
4,466,160

84,068,168
70,425,097
13,643,071
9,321,739
4,321,331

16,872
4,599-

37,726
5,222
325,162

37,434-33,000113,344
80,473285,724

111,409
94,220573,742

325,221416,227

392,030--

52,401

416,291
90,032
1,247,773
3,504,111

975,465
184,820
1,604,717
3,290,356

5,560
5,560

211,377
211,377

54,581
54,581
3,455,090
743,993
946,682
1,690,676
1,764,413
82,8391,681,574

144,535
82,817
247,824
475,176
3,026,557
1,746,537(662,816)
1,083,720
1,942,836
32,1191,910,717

Consolidated Statements of Comprehensive Income(Thousand yen)
FY 2018

FY 2017(From April 1, 2017 toMarch 31, 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

10(From April 1, 2018 toMarch 31, 2019)

1,764,413

1,942,836

70,724145,099(207,101)
115,530(11,587)(22,220)
205,081(28,467)

1,353(14,023)

125,606
1,890,020

128,780
2,071,617

1,831,102

2,016,420

58,91755,197

(3) Consolidated Statements of Changes in Equity
For fiscal year 2017 (from April 1, 2017 to March 31, 2018)(Thousand yen)
Shareholders’ equity
Capital stock
Balance at the beginning of
periodChanges in items during period
Dividends of surplus
Net income attributable toshareholders of parent
company
Purchase of treasury stock
Change in ownership interestof parent due to transactions
with non-controllinginterests
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at the end of period

Balance at the
beginning of period

Capital surplus

5,359,893

4,367,993

Retainedearnings

Total
shareholders’equityTreasury stock

17,626,220(30,689)

27,323,417(268,252)(268,252)

1,681,574

1,681,574
(83)

(83)

-

-

1,413,321(83)

1,413,238

5,359,893

4,367,993

19,039,542(30,772)

28,736,656

Accumulated other comprehensive income
Accumulated
Valuation
Foreign
Deferred gains
adjustment fordifference on
currency
or losses on
employeeavailable-fortranslation
hedgesretirement
sale securities
adjustment
benefits

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets(304,154)(133,873)

813,996

28,003,540

106,871(72,280)

135,690

Changes in items
during period(268,252)

Dividends of surplus
Net income
attributable toshareholders ofparent company
Purchase of treasury
stock
Change in ownershipinterest of parent
due to transactions
with noncontrolling interests
Net changes of items
other thanshareholders’equityTotal changes of items
during period
Balance at the end of
period

1,681,574(83)-

70,724145,099(181,825)

115,530

149,529(12,445)

137,083

70,724145,099(181,825)

115,530

149,529(12,445)

1,550,322

177,595

72,818(46,134)(188,623)

15,656

801,550

29,553,862

11

For fiscal year 2018 (from April 1, 2018 to March 31, 2019)(Thousand yen)
Shareholders’ equity
Capital stock
Balance at the beginning of
periodChanges in items during period
Dividends of surplus
Net income attributable toshareholders of parent
company
Purchase of treasury stock
Change in ownership interestof parent due to transactions
with non-controllinginterests
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at the end of period

Capital surplus

5,359,893

4,367,993

Retainedearnings
19,039,542

177,595(30,772)

28,736,656(536,504)(536,504)

1,910,717

1,910,717
(195)

(195)
(58,508)(58,508)-(58,508)

1,374,213(195)

1,315,509

5,359,893

4,309,484

20,413,755(30,968)

30,052,165

Accumulated other comprehensive income
Accumulated
Valuation
Foreign
Deferred gains
adjustment fordifference on
currency
or losses on
employeeavailable-fortranslation
hedgesretirement
sale securities
adjustment
benefits
Balance at the
beginning of period

Totalshareholders’equityTreasury stock

72,818(46,134)(188,623)

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets15,656

801,550

29,553,862

Changes in items
during period(536,504)

Dividends of surplus
Net income
attributable toshareholders ofparent company
Purchase of treasury
stock
Change in ownershipinterest of parent
due to transactions
with noncontrolling interests
Net changes of items
other thanshareholders’equityTotal changes of items
during period
Balance at the end of
period

1,910,717(195)(58,508)(11,587)(22,220)

167,978(28,467)

105,702(259,598)(153,896)(11,587)(22,220)

167,978(28,467)

105,702(259,598)

1,161,613

166,007

50,597

121,844(217,091)

121,358

541,951

30,715,475

12

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

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

13

FY 2017

FY 2018(From April 1, 2017 toMarch 31, 2018)(From April 1, 2018 toMarch 31, 2019)

3,455,090
2,228,371(3,050)301,229

3,026,557
2,280,576
82,817334
92,472

253,642

161,277

203,751

717,789(1,367,045)

1,714,014-

67,817(21,472)
325,221(212,480)(42,949)
392,030
206,092(37,434)

52,401(5,560)54,581(136,785)

144,535(211,377)(20,809)391,671

131,526(1,550,071)(5,854,813)(881,202)

2,653,356(192,787)
2,458,009(47,245)
5,216,433
40,885(331,627)(954,321)
3,971,369

287,195
3,979,826
809,512
10,670,184
61,627(391,868)(974,656)
9,365,287

(Thousand yen)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Decrease (increase) in time deposits
Other payments
Other proceeds
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Repayments of lease obligations
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling shareholders
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period14

FY 2017

FY 2018(From April 1, 2017 toMarch 31, 2018)(From April 1, 2018 toMarch 31, 2019)(1,283,136)
6,754(1,889)(2,147)
1,348(997,650)(549,201)
15,009(2,810,912)(1,477,907)
1,775(251,641)
413,202(1,000)2,472(277,275)(361,024)
6,771(1,944,626)

57,236,380(57,177,170)
700,000(700,000)

63,989,859(69,266,307)
1,500,000(900,000)-(319,204)(179,797)(83)(268,870)(71,362)(460,904)(242,602)(195)(535,872)(54,100)(5,828,422)(72,846)

54,696

626,706
1,772,528
2,399,235

1,646,935
2,399,235
4,046,170

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.

(Changes in presentation)(Changes due to the application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)
From the beginning of the FY 2018, the Company applied “Partial Amendments to Accounting Standard forTax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018). Accordingly, deferred tax assets arepresented under investments and other assets, and deferred tax liabilities are presented under non-current liabilities.
As a result, ¥2,240,936 thousand of “deferred tax assets” under “current assets” was included in ¥5,162,538
thousand of “deferred tax assets” in “investments and other assets” for the FY 2017 on the Consolidated Balance
Sheets.
(Additional information)(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 the internal 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 amount required 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 Meeting of Shareholders held on June 27, 2018 and to make final payments of the retirement
benefits corresponding to their terms of office.
Accordingly, total amounts of “provision for directors’ and auditors’ retirement benefits” and “provision for
executive officers’ retirement benefits” were fully reversed, and ¥322,265 thousand of the unpaid portion of the
final payments were recognized as “long-term accounts payable - other.”(Consolidated Statements of Income)(Compensation expenses)
Compensation expenses are as follows.

Compensation expenses pursuant to contractual warranty clause in the

FY 2017

FY 2018(From April 1, 2017 toMarch 31, 2018)(From April 1, 2018 toMarch 31, 2019)-785,706 thousand yen

416,291 thousand yen

147,756 thousand yen

Others-

42,002 thousand yen

Total

416,291 thousand yen

975,465 thousand yen

aircraft seat business
Compensation expenses due to the contract cancellation before the agreed
term in the aircraft interiors business

15

(Impairment loss)
Impairment losses are as follows.
(1)Assets or asset groups whose impairment losses were recognized
Item

Idle assets

DetailType

Location

Aircraft hangar for

Land, buildings andmaintenancestructures

Manufacturing facility

Machinery, equipment

for aircraft interiors

and vehicles

Manufacturing facility

Machinery, equipment

for aircraft interiors

and vehicles

Total

Impairment loss

Miyazaki-shi, Miyazaki

40,142 thousand yen

Tachikawa-shi, Tokyo

9,623 thousand yen

Philippines

33,050 thousand yen
82,817 thousand yen(2) Background for recognizing the impairment losses
Impairment losses were recognized since invested amounts in the aircraft hangar for maintenance were
expected to be unrecoverable due to the change in business plan, and invested amounts in the two manufacturing
facilities for aircraft interiors were expected to be unrecoverable as there was no prospect for them to be used in
the conventional way.
(3) Method of grouping assets
Assets are in principle grouped according to the business groups. However, some assets or asset groups aregrouped separately as units that generate independent cash flows from other asset groups.
(4) Method of calculating recoverable amounts
For land, buildings and structures of aircraft hangar for maintenance, net realizable value is used, and the net
realizable value is calculated by deducting estimated costs of disposal from assessed value of non-current assets forproperty tax. For the other idle assets, since their recoverability is not recognized, their carrying amounts are
reduced to memorandum value, and the net decrease is recognized as impairment loss.
(Loss related to quality)
In the aircraft seat business, ¥247,824 thousand of loss related to quality was recognized as expenses related toinappropriate inspections at a subsidiary of the Company that was announced on March 26, 2019.

16

(Segment information, etc.)[Segment information]
1. Overview of reportable segments
Reportable segments of the Group are determined from those which can provide separate financial information,
and are regularly reviewed by the Board of Directors to determine the allocation of management resources and toevaluate achievements among the constituent units of the Group.
The Group is composed of a single group and four divisions, each of which conducts business activities bydeveloping independent management strategies for products and services it handles. The Group therefore consistsof segments organized by product and service based on divisions, and the reportable segments comprise “AircraftInteriors Business,” “Aircraft Seat Business,” “Aircraft Components Business” and “Aircraft MaintenanceBusiness.”“Aircraft Interiors Business” mainly engages in the manufacturing and sales of products including galleys andlavatories for passenger aircraft. “Aircraft Seat Business” primarily engages in manufacturing and sales of
products including passenger aircraft seats. “Aircraft Components Business” engages in manufacturing and sales
primarily of heat exchangers, aircraft equipment including aircraft engine parts, and CFRP structure parts.
“Aircraft Maintenance Business” conducts operations such as maintenance and alteration of regional jets, mediumand small-sized aircraft and helicopters, as well as repairs of equipment for these aircraft.
2. Method of calculating net sales, income (loss), assets, liabilities and others by reportable segment
The accounting method used for reportable business segments is a method that is in compliance with theaccounting principles and procedures adopted for the preparation of consolidated financial statements. Reportablesegment income figures are based on ordinary income. Inter-segment net sales and transfers are based on market
prices.

17

3. Information on net sales, income (loss), assets, liabilities and others by reportable segment
For fiscal year 2017 (from April 1, 2017 to March 31, 2018)(Thousand yen)

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

Aircraft
Interiors
Business

Reportable segment
Aircraft
Aircraft
Aircraft Seat
Components MaintenanceBusiness
Business
Business

50,992,198

12,484,309

6,312,464

8,002,851

77,791,825

17

77,791,842

1,904,719-

15,786202,132

2,122,638

103,765

2,226,404

52,896,918
6,793,890
56,631,960

12,484,309(3,641,005)
18,577,657

6,328,251
216,470
10,418,878

8,204,984
139,268
8,778,871

79,914,463
3,508,624
94,407,368

103,782(4,513)49,56080,018,246
3,504,111
94,456,929

1,310,361
14,717
178,068

109,130
985
98,594501,157
630
26,366

307,722539
22,1922,228,371
16,872
325,221-2,228,371
16,872
325,22137,434---37,434-37,434

1,202,402

88,501

374,748

192,309

1,857,961-

1,857,961

Total

Others(Note)

Total(Note) The Others segment includes the businesses of affiliates 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.

18

For fiscal year 2018 (from April 1, 2018 to March 31, 2019)(Thousand yen)

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

Aircraft
Interiors
Business

Reportable segment
Aircraft
Aircraft
Aircraft Seat
Components MaintenanceBusiness
Business
Business

56,869,081

12,175,486

6,597,312

8,426,252

84,068,132

36

84,068,168

1,311,849

208,466

11,32638,725

1,570,368

108,634

1,679,002

58,180,930
6,113,760
77,561,230

12,383,953(3,143,327)
5,130,585

6,608,639
110,642
11,079,482

8,464,977
210,190
9,177,024

85,638,500
3,291,265
102,948,323

1,385,024
35,036
227,020

127,212951
101,803459,633938
34,856

308,705800
28,3492,280,576
37,726
392,030-

2,280,576
37,726
392,030

18,442--(70,844)(52,401)-(52,401)

1,161,778

201,823

421,682

224,101

2,009,385-

2,009,385

Total

Others(Note)

Total

108,670 85,747,171(908)
3,290,356
32,529 102,980,852(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.

19

4. Differences between the total amount of reportable segments and the amounts in the Consolidated Financial
Statements and the major details of such differences(Matters relating to adjustment of differences)(Thousand yen)
Net sales
Reportable segments total
Net sales of Others
Eliminations of inter-segment transactions
Net sales in the Consolidated Financial Statements

Fiscal year 2017
79,914,463
103,782(2,226,404)
77,791,842

Fiscal year 2018
85,638,500
108,670(1,679,002)
84,068,168(Thousand yen)

IncomeReportable segments total
Loss of Others
Ordinary income in the Consolidated Financial Statements

Fiscal year 2017
3,508,624(4,513)3,504,111

Fiscal year 2018
3,291,265(908)
3,290,356(Thousand yen)

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

Other items

Depreciation
Increase in property,
plant and equipment,
intangible assets,
and long-term
prepaid expenses

Reportablesegments total

Fiscal year 2017
94,407,368
49,56094,456,929

OthersFiscal year 2018
102,948,323
32,529102,980,852(Thousand yen)Amounts in theConsolidated
Financial Statements

Adjustments

FY 2017

FY 2018

FY 2017

FY 2018

FY 2017

FY 2018

FY 2017

FY 2018

2,228,371

2,280,576

-

-

-

-

2,228,371

2,280,576

1,857,961

2,009,385

-

-

-

-

1,857,961

2,009,385

20

[Related information]
For fiscal year 2017 (from April 1, 2017 to March 31, 2018)
1. Information by product and service
This is omitted as similar information is disclosed in segment information.
2. Information by geographical area
(1) Net sales(Thousand yen)
North America

Asia & Oceania

Japan
U.S.
13,339,500

33,568,215

EuropeTotal

5,521,724

77,791,842

Singapore

33,180,118

25,362,402

17,769,703(Note) Net sales are classified by country or area based on the locations of customers.
(2) Property, plant and equipment(Thousand yen)Japan

North America

10,857,713

Asia & Oceania

2,097,818

Europe884,886

Total-

13,840,417

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

Net sales

Related segment

MITSUBISHI INTERNATIONAL
CORP.

28,553,725

Aircraft interiors business

ITOCHU Singapore Pte, Ltd.

13,948,052

Aircraft interiors business, Aircraft seatbusiness

21

For fiscal year 2018 (from April 1, 2018 to March 31, 2019)
1. Information by product and service
This is omitted as similar information is disclosed in segment information.
2. Information by geographical area
(1) Net sales(Thousand yen)
North America

Asia & Oceania

Japan
U.S.
20,241,274

35,706,941

EuropeTotal

7,870,561

84,068,168

Singapore

34,954,784

20,249,391

11,406,829(Note) Net sales are classified by country or area based on the locations of customers.
(2) Property, plant and equipment(Thousand yen)Japan

North America

11,043,721

Asia & Oceania

2,221,231

EuropeTotal

723,368-

13,988,321

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

Net sales

Related segment

MITSUBISHI INTERNATIONAL
CORP.

30,529,092

Aircraft interiors business

ITOCHU Singapore Pte, Ltd.

8,971,307

Aircraft interiors business, Aircraft seatbusiness[Information on impairment loss on non-current assets by reportable segment]
For fiscal year 2017 (from April 1, 2017 to March 31, 2018)
There is no relevant information.
For fiscal year 2018 (from April 1, 2018 to March 31, 2019)(Thousand yen)
Aircraft
Interiors
Business
Impairment loss

42,674

Reportable segment
Aircraft
Aircraft
Aircraft Seat
Components MaintenanceBusiness
Business
Business
40,142

Total
82,817[Information on amortization and unamortized balance of goodwill by reportable segment]
For fiscal year 2017 (from April 1, 2017 to March 31, 2018)
There is no relevant information.
For fiscal year 2018 (from April 1, 2018 to March 31, 2019)
There is no relevant information.
22

Others-Total

82,817

[Information on gain on bargain purchase by reportable segment]
For fiscal year 2017 (from April 1, 2017 to March 31, 2018)
There is no relevant information.

For fiscal year 2018 (from April 1, 2018 to March 31, 2019)
There is no relevant information.

23

(Per share information)
Fiscal year 2017(from April 1, 2017 to March 31,
2018)

Fiscal year 2018(from April 1, 2018 to March 31,
2019)

Net assets per share

1,071.84 yen

1,124.82 yen

Net income per share

62.69 yen

71.23 yen

Not presented because there are no
latent shares.

Not presented because there are no
latent shares.

Diluted net income per share(Notes) 1. The basis for calculating net income per share is as shown below.
Fiscal year 2017(from April 1, 2017 to March 31,
2018)
Net income attributable toshareholders of parent company(thousand yen)Amount not attributable to commonshareholders (thousand yen)
Net income attributable toshareholders of parent company
related to common shares(thousand yen)
Average number of common shares(thousand shares)

Fiscal year 2018(from April 1, 2018 to March 31,
2019)

1,681,574

1,910,717--

1,681,574

1,910,717

26,82526,825

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

Total net assets (thousand yen)Amount deducted from total net
assets (thousand yen)[including non-controlling interests(thousand yen)]
Year-end net assets related tocommon shares (thousand yen)
Number of common shares at yearend used to calculate net assets
per share (thousand shares)

Fiscal year 2017(as of March 31, 2018)29,553,862

Fiscal year 2018(as of March 31, 2019)30,715,475

801,550

541,951[801,550][541,951]

28,752,312

30,173,524

26,82526,825(Significant subsequent events)
There is no relevant information.

24