Consolidated Financial Results
for the Third Quarter of the Fiscal Year 2017
Ending March 31, 2018
[Japanese GAAP]
February 6, 2018

Company name: JAMCO Corporation
Stock exchange listing: Tokyo Stock Exchange
Stock Exchange Code: 7408
URL: https://www.jamco.co.jp/
Representative: Harutoshi Okita, President & CEO
Contact: Kentaro Goto, Director & Managing Executive Officer
Phone: +81-42-503-9145
The date of filing quarterly securities report: February 7, 2018
The start date of payout of dividend: —Availability of supplementary briefing material on quarterly financial results: None
Schedule of quarterly financial results briefing session: None
(Amounts are rounded down to the nearest million yen.)
1. Consolidated Operating Results for the Third Quarter of the Fiscal Year 2017 (from April 1, 2017 to
December 31, 2017)(1) Consolidated Operating Results(%: Changes from the previous corresponding period)
Net sales

Operating income

Net income attributable
to shareholders ofparent company

Ordinary income

For the third quarter
Million yen%
Million yen%
Million yen%
Million yen
ofFiscal year 201755,896
(4.5)
3,026
144.8
2,933
265.5
1,323
Fiscal year 2016
58,499(11.9)
1,236(82.5)
802(88.9)
617(Note) Comprehensive income: The third quarter of fiscal year 2017: ¥1,719 million [367.5%]
The third quarter of fiscal year 2016: ¥367 million [(92.0)%]

For the third quarterof
Fiscal year 2017
Fiscal year 2016

Net income per share

Diluted net income
per share

Yen

Yen

49.32
23.02

-

(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

As of December 31, 2017
92,581
29,383As of March 31, 201792,55928,003(Reference) Equity: As of December 31, 2017: ¥28,559 million
As of March 31, 2017: ¥27,189 million

30.8
29.4

%

114.3
(86.3)

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

2nd
quarter-end
Yen

3rd
quarter-end
Yen

Year-end

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

Total

Yen

Yen

10.00

10.00

20.00

20.00

3. Consolidated Financial Results Forecast for the Fiscal Year 2017 (from April 1, 2017 to March 31, 2018)(%: indicates changes from the previous corresponding period.)
Net sales
Million yen

Operating income% Million yen

Ordinary income% Million yen%

Net income
attributable toshareholders ofparent company
Million yen

Net income
per share%

Yen

Full year
79,400
(3.0)
3,800
78.2
3,470
169.8
2,280
124.7
(Note) Revision to the forecast of consolidated financial results announced most recently: None

84.99

* Notes:(1) Changes in significant subsidiaries during this quarter of the fiscal year 2017: None
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Number of common shares issued
1) Number of common shares outstanding (including the number of treasury stock):
As of December 31, 2017: 26,863,974 shares
As of March 31, 2017: 26,863,974 shares
2) Number of treasury stock:
As of December 31, 2017: 38,762 shares
As of March 31, 2017: 38,730 shares
3) Average number of common shares outstanding:
3rd quarter of FY 2017: 26,825,218 shares
3rd quarter of FY 2016: 26,825,273 shares

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

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review .................................. 2(1) Explanation of Operating Results .............................................................................................................. 2(2) Explanation of Financial Position .............................................................................................................. 4(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .......... 4
2. Quarterly Consolidated Financial Statements and Primary Notes ................................................................. 5(1) Quarterly Consolidated Balance Sheets ..................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................. 7
Quarterly Consolidated 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(Segment information, etc.) ................................................................................................................. 10

1

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the third quarter of FY 2017, the overall global economy remained firm, as the U.S. economy
steadily improved, and the economies in Japan and the euro-zone also continued to recover moderately, while
China and emerging countries also showed signs of economic rebound. In the foreign exchange market, thedollar-yen exchange rate remained unstable due mainly to trends in monetary policies in the U.S. and aheightened sense of caution about the situation concerning North Korea. Meanwhile, since the U.S. Federal
Reserve Board (FRB) demonstrated a positive attitude towards raising interest rates for the time being in
September, the dollar is expected to further strengthen, and generally has stably hovered around ¥112 per US$1
toward the end of the third quarter of FY 2017.
In the air transportation industry, growing global demand for air transportation and low crude oil prices haveresulted in improved earnings for airlines. However, fierce competition continues due to aggressive efforts of
low-cost carriers (LCCs), and major airlines are launching various strategies such as securing flight routes withhigh demand, introducing new fuel-efficient aircraft, and enhancing attractive passenger cabin services. Backed
by rising aircraft demand, aircraft manufacturers have maintained a high level of order backlog. Aircraft
demand continues to expand, with the number of aircraft delivered in 2017 reaching record highs for bothBoeing and Airbus. In addition, Boeing has announced plans to increase its monthly production of the Boeing
787 to 14 in 2019, as well as the delivery schedule for the first Boeing 777X. Accordingly, order volume foraircraft-related manufacturers, including the Company, is expected to grow.
Under such circumstances, in the aircraft interiors business and the aircraft seat business, the Groupendeavored to improve production efficiency, while promoting initiatives to reduce cost.
In the aircraft components business, we promoted efforts to improve productivity for CFRP structure parts
and aircraft engine parts.
In the aircraft maintenance business, we continued with initiatives to ensure flight safety and enhancequality, while also taking initiatives to expand the range of services and improve earnings, in addition topromoting order receipt of new products.
As a result, on a consolidated basis, during the third quarter of FY 2017, the Company posted net sales of¥55,896 million (down ¥2,603 million compared to the same period of the previous fiscal year), operating
income of ¥3,026 million (up ¥1,789 million compared to the same period of the previous fiscal year), ordinary
income of ¥2,933 million (up ¥2,131 million compared to the same period of the previous fiscal year) and net
income attributable to shareholders of parent company of ¥1,323 million (up ¥705 million compared to thesame period of the previous fiscal year).
Provision for loss on construction contracts of ¥2,705 million for construction to be completed in or after
the next fiscal year was recognized as of December 31, 2017. The impact of this provision for loss on
construction contracts on income (loss) for the quarterly third quarter of FY 2017 was an increase of ¥355
million in cost of sales (provision for loss on construction contracts as of September 30, 2017 was ¥2,350
million) and, for the cumulative third quarter of FY 2017, a decrease of ¥728 million in cost of sales (provision
for loss on construction contracts at the end of FY 2016 was ¥3,434 million).
Selling, general and administrative expenses, non-operating income (expenses), extraordinary income(loss) and total income taxes for the Group are as follows:
Selling, general and administrative expenses were ¥6,073 million (a decrease of ¥387 million compared tothe same period of the previous fiscal year) due to a decrease in expenses such as personnel expenses, salescommissions, and warranty expenses.
In terms of non-operating income (expenses), an expense of ¥92 million was reported, an improvement of¥341 million compared to the same period of the previous fiscal year during which foreign exchanges losses of¥184 million due to yen appreciation and compensation expenses of ¥127 million were recognized (an expenseof ¥433 million in the same period of the previous fiscal year).
2

As for extraordinary income (loss), a loss of ¥30 million was reported due mainly to loss on disposal of
non-current assets (a loss of ¥23 million in the same period of the previous fiscal year).
Total income taxes were ¥1,523 million (¥147 million in the same period of the previous fiscal year)
primarily due to recording of a partial reversal of a U.S. subsidiary’s deferred tax assets of ¥468 million during
the third quarter of FY 2017. This is the result of the enactment of the tax reform act, which includes a
reduction of the U.S. federal income tax rate from 35% to 21% on December 22, 2017 (local time).
Business performance by segment is as follows.
[Aircraft Interiors Business]
In the aircraft interiors business, although U.S. dollar-denominated net sales were higher than expected dueto the weaker yen in the foreign exchange market compared to the same period of the previous fiscal year, net
sales decreased from the same period of the previous fiscal year. This decline was attributable to factors
including a decrease in shipments of galleys and lavatories for the current Boeing 777s that are being replacedby the Boeing 777X, which is under development by Boeing. Meanwhile, although ordinary income wassomewhat impacted by the decrease in net sales, it increased from the same period of the previous fiscal year,
owing to the higher-than-expected net sales denominated in U.S. dollars and an improvement in foreignexchange gains and losses due to the weaker yen, as well as additional sales resulting from changes in customer
specifications, lower costs achieved through cost reduction measures and a decline in provision for loss on
construction contracts.
As a result, the aircraft interiors business posted net sales of ¥37,788 million (down ¥2,673 million
compared to the same period of the previous fiscal year) and ordinary income of ¥5,051 million (up ¥2,046
million compared to the same period of the previous fiscal year).
[Aircraft Seat Business]
In the aircraft seat business, net sales increased from the same period of the previous fiscal year. This
increase was attributable to product shipments from new programs and increased sales of spare parts for seats.
However, with regard to ordinary income (loss), although the Company sought to improve profitability throughmeasures that included the improvement of production efficiency, an increase in the initial costs ofdevelopment and manufacturing of new programs and other factors resulted in an ordinary loss.
As a result, the aircraft seat business posted net sales of ¥8,426 million (up ¥372 million compared to thesame period of the previous fiscal year) and ordinary loss of ¥2,196 million (ordinary loss of ¥2,138 million in
the same period of the previous fiscal year).
[Aircraft Components Business]
In the aircraft components business, net sales decreased from the same period of the previous fiscal year.
This was primarily because, although the production of aircraft engine parts rose, there was a decline in the
production of CFRP structure parts (ADP) owing to the impact of the decrease in monthly production of the
Airbus A380, and also because of the decline in shipments of heat exchangers and other defense-related
components. With regard to ordinary income (loss), despite an improvement in production efficiency foraircraft engine parts, an ordinary loss was reported, largely affected by the decrease in production of the Airbus
A380 and the decrease in net sales of heat exchangers and other defense-related components.
As a result, the aircraft components business posted net sales of ¥4,151 million (down ¥570 million
compared to the same period of the previous fiscal year) and ordinary loss of ¥53 million (ordinary loss of ¥8
million in the same period of the previous fiscal year).

3

[Aircraft Maintenance Business]
In the aircraft maintenance business, although net sales of aircraft maintenance were weak as a result of adecrease in completed construction due to factors such as the termination of our contract for regular inspection
and maintenance of Civil Aviation Bureau flight inspection aircraft and changes in the delivery dates for a
portion of defense-related aircraft maintenance, net sales increased from the same period of the previous fiscal
year and ordinary income (loss) improved due to increased profitability thanks to continued strong production
for equipment maintenance.
As a result, the aircraft maintenance business posted net sales of ¥5,529 million (up ¥266 million comparedto the same period of the previous fiscal year) and ordinary income of ¥131 million (ordinary loss of ¥53
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 from the same period of theprevious fiscal year) and ordinary loss of ¥0 million (ordinary loss of ¥0 million in the same period of theprevious fiscal year).
(2) Explanation of Financial Position[Assets, liabilities and net assets]
Total assets as of December 31, 2017 amounted to ¥92,581 million, up ¥22 million from the end of theprevious fiscal year. Of such, total current assets increased by ¥489 million from the end of the previous fiscal
year, due mainly to an increase in cash and deposits (up ¥2,508 million compared to the end of the previous
fiscal year) and an increase in work in process (up ¥4,732 million compared to the end of the previous fiscal
year), despite a decrease in notes and accounts receivable - trade (down ¥ 4,462 million compared to the end of
the previous fiscal year) and a decrease in raw materials and supplies (down ¥ 1,584 million compared to theend of the previous fiscal year). Total non-current assets decreased by ¥467 million from the end of theprevious fiscal year as a result of relatively limited investment for the third quarter of FY 2017.
Total liabilities amounted to ¥63,198 million, down ¥1,357 million from the end of the previous fiscal year.
This was attributable primarily to a decrease in notes and accounts payable - trade (down ¥1,920 million
compared to the end of the previous fiscal year), a decrease in accrued expense-salary (down ¥648 million
compared to the end of the previous fiscal year) and a decrease in provision for loss on construction contracts(down ¥728 million compared to the end of the previous fiscal year), which offset the increase in electronicallyrecorded obligations - operating (up ¥447 million compared to the end of the previous fiscal year) and theincrease in short-term loans payable (up ¥261 million compared to the end of the previous fiscal year).
Total net assets amounted to ¥29,383 million, up ¥1,379 million from the end of the previous fiscal year.
This was due primarily to an increase in retained earnings (up ¥1,054 million compared to the end of theprevious fiscal year). As a result, the equity ratio stood at 30.8%.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
While an ordinary loss was posted in the aircraft seat business and total income taxes increased as a result ofa partial reversal of a U.S. subsidiary’s deferred tax assets due to a reduction of the U.S. federal tax income rateduring the third quarter of FY 2017, with regard to the financial results of the entire Group, the consolidated
financial results forecast for the full fiscal year ending March 31, 2018, announced on May 10, 2017, remains
unchanged due primarily to higher-than-expected income for the aircraft interiors business. The exchange rate
assumed for the outlook is unchanged as well at ¥110 per US$1.

4

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Thousand yen)
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Accrued expense-salary
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors’ and auditors’ retirement
benefits
Provision for executive officers’ retirement benefits
Liability for employee retirement benefits
Other
Total non-current liabilities
Total liabilities

5

As of December 31, 2017

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

4,785,569
18,695,347
275,315
27,831,150
16,074,749
5,578,088(2,412)
73,237,807

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

13,819,877
1,803,360
3,720,736
19,343,973
92,581,781

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

7,687,932
6,819,415
23,003,597
900,000
454,447
654,732
2,705,419
8,609,590
50,835,135

4,700,000

4,500,000

175,420

170,589

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

149,132
6,899,602
643,932
12,363,256
63,198,392

(Thousand yen)
As of March 31, 2017
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Accumulated adjustment for employee retirement
benefits
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

As of December 31, 2017

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

5,359,893
4,367,993
18,681,071(30,772)
28,378,185

106,871(72,280)
135,690

182,805(7,244)
239,383(304,154)(233,940)(133,873)
813,996
28,003,540
92,559,772

181,004
824,199
29,383,388
92,581,781

(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 2016

The third quarter of FY 201758,499,644
50,802,532
7,697,112
6,460,922
1,236,189

55,896,092
46,796,196
9,099,895
6,073,894
3,026,001

4,415
4,445
-

10,248
4,599
12,89820,635

15,79360,00340,216
129,716

54,200109,594
207,336

218,642
184,512
127,324
32,880563,359
802,546

239,192
60,598299,790
2,933,546

4,062
360
4,423

-

14,842
13,32028,162778,807
9,801
137,927
147,728
631,078
13,575617,50330,85530,8552,902,691
605,485
917,771
1,523,256
1,379,434
56,331
1,323,103

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodSubsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Compensation expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of non-current assets
Total extraordinary income
Extraordinary loss
Loss on disposal of non-current assets
Head office transfer expenses
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

7

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 2016
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 third quarter of FY 2017

631,078

1,379,434

13,477(372,876)
40,376
61,30375,93465,036
119,586
70,214(5,541)

9,340(263,260)
367,818

340,111
1,719,546

355,993

1,637,981

11,82481,565

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

(Notes in the case of significant changes in shareholders’ equity)
There is no relevant information.

9

(Segment information, etc.)[Segment information]
I. For the third quarter of FY 2016

1. Information on net sales and income (loss) by reportable segment(Thousand yen)
Aircraft
Interiors
Business
Net sales
Net sales to outside
customers
Inter-segment net sales ortransfers
Total
Segment income (loss)

Reportable segment
Aircraft
Aircraft
Aircraft Seat
Components MaintenanceBusiness
Business
Business

Total

Others(Note)

Total

40,461,556

8,053,375

4,721,717

5,262,934

58,499,584

60

58,499,644

719,068-

3,524

40,012

762,605

67,918

830,524

41,180,625
3,004,488

8,053,375(2,138,859)

4,725,242(8,348)5,302,946(53,905)

59,262,190
803,374

67,978 59,330,169(827)
802,546(Note) The Others segment includes the businesses of affiliates Orange JAMCO Corporation and JAMCOTECHNICAL CENTER Co., Ltd. Orange JAMCO Corporation is a special-purpose subsidiary,
dedicated to promoting the employment of people with disabilities and provides assistance work in the
Company’s factories, which is one of the corporate social responsibilities.
2. Differences between the total amount of income (loss) of reportable segments and the amounts in the Quarterly
Consolidated Statement of Income and the major details of such differences(Matters relating to adjustment of differences)(Thousand yen)
IncomeAmountReportable segments total
Loss of Others
Ordinary income in the Quarterly Consolidated Statement of
Income3. Information on impairment loss on non-current assets and goodwill by reportable segment
There is no relevant information.

10803,374(827)
802,546

II. For the third quarter of FY 2017

1. Information on net sales and income (loss) by reportable segment(Thousand yen)
Aircraft
Interiors
Business
Net sales
Net sales to outside
customers
Inter-segment net sales ortransfers
Total
Segment income (loss)

Reportable segment
Aircraft
Aircraft
Aircraft Seat
Components MaintenanceBusiness
Business
Business

Total

Others(Note)

Total

37,788,364

8,426,288

4,151,702

5,529,725

55,896,080

11

55,896,092

1,465,797

-

3,166

134,205

1,603,169

77,9401,681,110

39,254,162
5,051,450

8,426,288(2,196,264)

4,154,868(53,128)

5,663,930
131,790

57,499,250
2,933,849

77,952 57,577,202(302) 2,933,546(Note) The Others segment includes the businesses of affiliate Orange JAMCO Corporation. Orange JAMCO
Corporation is a special-purpose subsidiary, dedicated to promoting the employment of people withdisabilities and provides assistance work in the Company’s factories, which is one of the corporatesocial responsibilities.
2. Differences between the total amount of income (loss) of reportable segments and the amounts in the Quarterly
Consolidated Statement of Income and the major details of such differences(Matters relating to adjustment of differences)(Thousand yen)
IncomeAmountReportable segments total
Loss of Others
Ordinary income in the Quarterly Consolidated Statement of
Income3. Matters concerning changes to reportable segments, etc.
There is no relevant information.

11

2,933,849(302)
2,933,546