Consolidated Financial Results
for the Third Quarter of the Fiscal Year 2018
Ending March 31, 2019
[Japanese GAAP]
February 8, 2019

Company name: JAMCO Corporation
Stock exchange listing: Tokyo Stock Exchange
Stock Exchange Code: 7408
URL: https://www.jamco.co.jp/
Representative: Harutoshi Okita, President & CEO
Contact: Kentaro Goto, Director & Managing Executive Officer
Phone: +81-42-503-9145
The date of filing quarterly securities report: February 12, 2019
The start date of payout of dividend: —Availability of supplementary briefing material on quarterly financial results: None
Schedule of quarterly financial results briefing session: None
(Amounts are rounded down to the nearest million yen.)
1. Consolidated Operating Results for the Third Quarter of the Fiscal Year 2018 (from April 1, 2018 to
December 31, 2018)(1) Consolidated Operating Results(%: Changes from the previous corresponding period)
Net sales

Operating income

Net income attributable
to shareholders ofparent company

Ordinary income

For the third quarter
Million yen%
Million yen%
Million yen%
Million yen
ofFiscal year 2018
61,950
10.8
2,762
(8.7)
2,670
(9.0)
1,611
Fiscal year 201755,896
(4.5)
3,026
144.8
2,933
265.5
1,323
(Note) Comprehensive income: The third quarter of fiscal year 2018: ¥1,796 million [4.5%]
The third quarter of fiscal year 2017: ¥1,719 million [367.5%]

For the third quarterof
Fiscal year 2018
Fiscal year 2017

Net income per share

Diluted net income
per share

Yen

Yen

60.08
49.32

-

(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

As of December 31, 2018
98,62630,759As of March 31, 2018
94,45629,553(Reference) Equity: As of December 31, 2018: ¥29,994 million
As of March 31, 2018: ¥28,752 million

30.4
30.4

%

21.8
114.3

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

2nd
quarter-end
Yen

3rd
quarter-end
Yen

Year-end

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

Total

Yen

Yen

20.00

20.00

20.00

20.00

3. Consolidated Financial Results Forecast for the Fiscal Year 2018 (from April 1, 2018 to March 31, 2019)(%:indicates changes from the previous corresponding period.)
Net income
attributable to
Net income
Net sales
Operating income
Ordinary income
shareholders ofper share
parent company
Million yen% Million yen% Million yen%

Million yen%

Full year
81,9005.3
3,110 (30.4)
2,680(23.5)
1,800
7.0(Note) Revision to the forecast of consolidated financial results announced most recently: None
* Notes:(1) Changes in significant subsidiaries during this quarter of the fiscal year 2018: None
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Number of common shares issued
1) Number of common shares outstanding (including the number of treasury stock):
As of December 31, 2018: 26,863,974 shares
As of March 31, 2018: 26,863,974 shares
2) Number of treasury stock:
As of December 31, 2018: 38,801 shares
As of March 31, 2018: 38,762 shares
3) Average number of common shares outstanding:
3rd quarter of FY 2018: 26,825,193 shares
3rd quarter of FY 2017: 26,825,218 shares

Yen

67.10

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

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review .................................... 2(1) Explanation of Operating Results................................................................................................................. 2(2) Explanation of Financial Position ................................................................................................................ 4(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ............ 4
2. Quarterly Consolidated Financial Statements and Primary Notes.................................................................... 5(1) Quarterly Consolidated Balance Sheets ....................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................... 7
Quarterly Consolidated Statements of Income............................................................................................. 7
Quarterly Consolidated Statements of Comprehensive Income................................................................... 8(3) Notes to Quarterly Consolidated Financial Statements ................................................................................ 9(Notes on going concern assumption) ..................................................................................................... 9(Notes in the case of significant changes in shareholders’ equity) .......................................................... 9(Additional information) ......................................................................................................................... 9(Segment information, etc.) ................................................................................................................... 10

1

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the third quarter of FY 2018, the overall global economy generally remained firm, as the U.S.
economy steadily grew, and the economies in Japan and the euro-zone also continued to recover moderately,
despite concerns regarding a slowdown in the Chinese economy due to the growing impact of trade friction
between the U.S. and China. In the foreign exchange market, the dollar-yen exchange rate generally showed atrend 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 the trends in trade issues.
In the air transportation industry, while fierce competition continues due to aggressive efforts of low-costcarriers (LCCs), major airlines are launching various strategies such as securing 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 expand order receipt of the Company’s standard seats, while
conducting initiatives to improve production efficiency and reduce cost. We also started shipment of first classseats 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 received orders for piping for H3 nextgeneration launch vehicle rocket engine.
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 the third quarter of FY 2018, the Company posted net sales of¥61,950 million (up ¥6,054 million compared to the same period of the previous fiscal year), operating incomeof ¥2,762 million (down ¥263 million compared to the same period of the previous fiscal year), ordinary
income of ¥2,670 million (down ¥263 million compared to the same period of the previous fiscal year) and net
income attributable to shareholders of parent company of ¥1,611 million (up ¥288 million compared to thesame period of the previous fiscal year).
Provision for loss on construction contracts of ¥2,938 million for construction to be completed in or after
the next quarter was recognized as of December 31, 2018. The impact of this provision for loss on construction
contracts on income (loss) for the quarterly third quarter of FY 2018 was an increase of ¥571 million in cost of
sales (provision for loss on construction contracts as of September 30, 2018 was ¥2,367 million) and, for the
cumulative third quarter of FY 2018, an increase of ¥871 million in cost of sales (provision for loss on
construction contracts at the end of FY 2017 was ¥2,066 million).
Selling, general and administrative expenses were ¥6,747 million (an increase of ¥673 million compared tothe same period of the previous fiscal year) due mainly to increases in research and development expenses andsales commissions.
In terms of non-operating income (expenses), an expense of ¥91 million was reported due mainly torecognition of compensation expenses, despite an increase in foreign exchange gains (an expense of ¥92
million in the same period of the previous fiscal year).
As for extraordinary income (loss), a loss of ¥127 million was reported due to loss on disposal of noncurrent assets (a loss of ¥30 million in the same period of the previous fiscal year).
2

Business performance by segment is as follows.
[Aircraft Interiors Business]
In the aircraft interiors business, net sales increased from the same period of the previous fiscal year due
mainly to 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 affectedby 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 ¥42,354 million (up ¥4,565 million comparedto the same period of the previous fiscal year) and ordinary income of ¥4,400 million (down ¥650 million
compared to the same period of the previous fiscal year).
[Aircraft Seat Business]
In the aircraft seat business, net sales increased from the same period of the previous fiscal year due to anincrease in product shipments. Although ordinary income (loss) was affected by the increase in costs, mainlyreflecting an increase in the cost of some programs, and the increase in research and development expenses, it
improved from the same period of the previous fiscal year due mainly to an improvement in profitability as aresult of improved production efficiency and a reaction to the impact of an increase in the initial costs of some
programs in the same period of the previous fiscal year.
As a result, the aircraft seat business posted net sales of ¥9,557 million (up ¥1,130 million compared to thesame period of the previous fiscal year) and ordinary loss of ¥1,796 million (ordinary loss of ¥2,196 million in
the same period of 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 same period of the previous
fiscal year due to an increase in shipments of aircraft engine parts. Meanwhile, with regard to ordinary income(loss), ordinary loss was reported due mainly to the impact of a decrease in shipments of heat exchangers andother equipment despite our efforts to improve production efficiency.
As a result, the aircraft components business posted net sales of ¥4,498 million (up ¥346 million comparedto the same period of the previous fiscal year) and ordinary loss of ¥61 million (ordinary loss of ¥53 million in
the same period of the previous fiscal year).
[Aircraft Maintenance Business]
In the aircraft maintenance business, despite a decrease in completed construction as a result of factors suchas changes in the delivery dates for some aircraft maintenance, net sales and ordinary income remained flatover the same period of the previous fiscal year due to continued solid performance of equipment maintenance.
As a result, the aircraft maintenance business posted net sales of ¥5,540 million (up ¥10 million comparedto the same period of the previous fiscal year) and ordinary income of ¥129 million (down ¥1 million comparedto the same period of 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 same period of
the previous fiscal year) and ordinary loss of ¥1 million (ordinary loss of ¥0 million in the same period of theprevious fiscal year).
3(2) Explanation of Financial Position[Assets, liabilities and net assets]
Total assets as of December 31, 2018 amounted to ¥98,626 million, up ¥4,169 million from the end of theprevious fiscal year. Of such, total current assets increased by ¥4,558 million from the end of the previous fiscal
year, due mainly to an increase in work in process (up ¥2,816 million compared to the end of the previous fiscal
year), an increase in merchandise and finished goods (up ¥1,195 million compared to the end of the previous
fiscal year), despite a decrease in notes and accounts receivable - trade (down ¥823 million compared to the endof the previous fiscal year). Total non-current assets decreased by ¥389 million from the end of the previous
fiscal year due to decreases in property, plant and equipment (down ¥244 million compared to the end of theprevious fiscal year) and intangible assets (down ¥183 million compared to the end of the previous fiscal year)
as a result of relatively limited investment for the third quarter of FY 2018.
Total liabilities amounted to ¥67,866 million, up ¥2,963 million from the end of the previous fiscal year.
This was attributable primarily to an increase in electronically recorded obligations - operating (up ¥1,342
million compared to the end of the previous fiscal year) and an increase in notes and accounts payable - trade(up ¥1,312 million compared to the end of the previous fiscal year), which offset the decrease in loans payable(down ¥3,012 million compared to the end of the previous fiscal year).
Total net assets amounted to ¥30,759 million, up ¥1,205 million from the end of the previous fiscal year.
This was due primarily to an increase in retained earnings (up ¥1,075 million compared to the end of theprevious fiscal year). As a result, the equity ratio stood at 30.4%.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
The financial results forecast for the fiscal year ending March 31, 2019 remains unchanged from thefinancial results forecast for the full year announced on May 8, 2018 due to the expected impact of profit
estimation for foreign currency-denominated net sales and provision for loss on construction contracts as well
as foreign exchange losses. The exchange rate for the fourth quarter assumed for the financial results forecast isunchanged at ¥105 per US$1.

4

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Thousand yen)
As of March 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Accrued expense-salary
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors’ and auditors’ retirement
benefits
Provision for executive officers’ retirement benefits
Liability for employee retirement benefits
Provision for loss on compensation
Other
Total non-current liabilities
Total liabilities

5

As of December 31, 2018

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

4,589,819
21,628,120
1,910,222
29,826,579
15,995,890
3,332,253(13,248)
77,269,637

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

13,595,871
1,760,147
6,000,601
21,356,620
98,626,258

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

8,830,951
8,804,241
18,626,602
1,200,000
450,478
957,795
2,938,245
12,912,224
54,720,541

4,500,000

4,800,000

184,006-

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

6,946,894
344,747
1,054,476
13,146,118
67,866,659

(Thousand yen)
As of March 31, 2018
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Accumulated adjustment for employee retirement
benefits
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

As of December 31, 2018

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

5,359,893
4,367,993
20,114,676(30,884)
29,811,678

177,595
72,818(46,134)

132,387
82,618114,938(188,623)(147,548)

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

182,395
765,524
30,759,598
98,626,258

(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 2017

The third quarter of FY 2018

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

61,950,487
52,440,732
9,509,754
6,747,751
2,762,003

10,248
4,599
12,89825,646
5,222
311,254

15,793-54,200109,594
207,33680,361
66,918489,404

239,192

291,062-

22,59960,598299,790
2,933,546

140,995
126,334
580,992
2,670,415

30,85530,8552,902,691
605,485
917,771
1,523,256
1,379,434

127,143
127,1432,543,272
785,555
151,092
936,647
1,606,624

56,331(5,014)

1,323,103

1,611,638

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
Share of loss of entities accounted for using equity
methodCompensation expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on disposal of non-current assets
Total extraordinary loss
Income before taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Net income (loss) attributable to non-controllingshareholders
Net income attributable to shareholders of parent company

7

Quarterly Consolidated Statements of Comprehensive Income
Third Quarter of the Fiscal Year (from April 1 to December 31)(Thousand yen)
The third quarter of FY 2017
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 2018

1,379,434

1,606,624

75,93465,036
119,586
70,214(45,208)
9,799
184,437
41,075

9,340

(275)

340,111
1,719,546

189,828
1,796,452

1,637,981

1,778,378

81,565

18,073

(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 2018(from April 1, 2018 to December 31, 2018)(Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)
From the beginning of the first quarter of FY 2018, the Company applied “Partial Amendments to
Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018), etc.
Accordingly, deferred tax assets are presented under investments and other assets, and deferred tax
liabilities are presented under non-current liabilities.
(Abolition of the retirement benefits plan for Directors and Audit & Supervisory Board Members)
The Company had recognized the amount required to be paid at the end of period pursuant to theinternal rules in preparation for the award of retirement benefits for Directors and Audit & Supervisory
Board Members as “provision for directors’ and auditors’ retirement benefits” as well as the amountrequired to be paid at the end of period pursuant to the internal rules in preparation for the award of
retirement benefits for Executive Officers as “provision for executive officers’ retirement benefits.”
However, the Company decided to abolish the retirement benefits plan for Directors and Audit &Supervisory Board Members and for Executive Officers at the closing of the Annual General Meetingof Shareholders held on June 27, 2018 and to make final payments of the retirement benefits
corresponding to their terms of office.
Accordingly, ¥328,953 thousand of “provision for directors’ and auditors’ retirement benefits” and“provision for executive officers’ retirement benefits” were fully reversed, and the unpaid portion of
the final payments was recognized as “long-term accounts payable - other.” The amount of long-term
accounts payable - other was included in “other” under non-current liabilities.

9

(Segment information, etc.)[Segment information]
I. For the 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(302)

57,577,202
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. Information on impairment loss on non-current assets and goodwill by reportable segment
There is no relevant information.

102,933,849(302)
2,933,546

II. For the third quarter of FY 2018
1. Information on net sales and income (loss) by reportable segment(Thousand yen)
Aircraft
Interiors
Business
Net sales
Net sales to outside
customers
Inter-segment net sales ortransfers
Total
Segment income (loss)

Reportable segment
Aircraft
Aircraft
Aircraft Seat
Components MaintenanceBusiness
Business
Business

Total

Others(Note)

Total

42,354,295

9,557,211

4,498,569

5,540,392

61,950,469

17

61,950,487

1,133,008

174,404

10,90229,3601,347,675

81,566

1,429,242

43,487,304
4,400,562

9,731,615(1,796,643)

4,509,471(61,578)

5,569,753
129,914

63,298,144
2,672,254

81,584(1,838)63,379,729
2,670,415(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. Information on impairment loss on non-current assets and goodwill by reportable segment
There is no relevant information.

11

2,672,254(1,838)2,670,415