Consolidated Financial Results
for the Third Quarter of the Fiscal Year 2021
Ending March 31, 2022
[Japanese GAAP]
February 9, 2022
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 10, 2022
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 2021 (from April 1, 2021 to
December 31, 2021)(1) Consolidated Operating Results(%: Changes from the previous corresponding period)
Net sales

Operating income

Net income attributable
to shareholders ofparent company

Ordinary income

For the third quarter
Million yen%
Million yen%
Million yen%
ofFiscal year 2021
26,842(29.6)(1,520)(1,812)
Fiscal year 2020
38,120(41.7)(7,096)(8,086)(Note) Comprehensive income: The third quarter of fiscal year 2021: ¥(718) million [-%]The third quarter of fiscal year 2020: ¥(6,435) million [-%]For the third quarterof
Fiscal year 2021
Fiscal year 2020

Net income per share

Diluted net income
per share

Yen

Yen

(31.78)(239.19)-(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

As of December 31, 2021
95,471
14,165
As of March 31, 2021
101,236
16,517(Reference) Equity: As of December 31, 2021: ¥13,854 million
As of March 31, 2021: ¥16,218 million

14.5
16.0

Million yen

%

(852)
(6,416)-

2. Dividend distribution

Dividend distribution per share
1stquarter-end

2ndquarter-end
Yen

3rd
quarter-end
Yen

Year-end
Yen

Fiscal year 2020
0.00
Fiscal year 2021
0.00
Fiscal year 2021
(Planned)(Note) Revision to the plan of dividend distribution announced most recently: None

Total
Yen

Yen

0.00

0.00

0.00

0.00

3. Consolidated Financial Results Forecast for the Fiscal Year 2021 (from April 1, 2021 to March 31, 2022)(%: Changes from the previous fiscal year)
Net sales
Million yen

Operating income% Million yen

Ordinary income% Million yen%

Net income
attributable toshareholders ofparent company
Million yen

Full year
40,000 (20.1)(3,300)(3,500)(2,400)(Note) Revision to the forecast of consolidated financial results announced most recently: Yes

Net income
per share
%

Yen

-

(89.47)* Notes:(1) Changes in significant subsidiaries during this quarter of the fiscal year 2021: None
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Number of common shares issued
1) Number of common shares outstanding (including the number of treasury stock):
As of December 31, 2021: 26,863,974 shares
As of March 31, 2021: 26,863,974 shares
2) Number of treasury stock:
As of December 31, 2021: 38,964 shares
As of March 31, 2021: 38,964 shares
3) Average number of common shares outstanding:
3rd quarter of FY 2021: 26,825,010 shares
3rd quarter of FY 2020: 26,825,042 shares

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

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review ......................... 2(1) Explanation of Operating Results...................................................................................................... 2(2) Explanation of Financial Position ..................................................................................................... 5(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information . 5
2. Quarterly Consolidated Financial Statements and Primary Notes ........................................................ 6(1) Quarterly Consolidated Balance Sheets ............................................................................................ 6(2) Quarterly Consolidated Statements of Income and Comprehensive Income .................................... 8
Quarterly Consolidated Statements of Income.................................................................................. 8
Quarterly Consolidated Statements of Comprehensive Income........................................................ 9(3) Notes to Quarterly Consolidated Financial Statements ................................................................... 10(Notes on going concern assumption) ........................................................................................ 10(Notes in the case of significant changes in shareholders’ equity) ............................................. 10(Changes in accounting policies)................................................................................................ 10(Additional information) .... ................................................................................................... ....11(Quarterly Consolidated Statements of Income) ........................................................................ 11(Segment information, etc.) ........................................................................................................ 12
3. Others .................................................................................................................................................. 14
Significant Events Regarding Going Concern Assumption ....................................................... 141

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the third quarter of FY 2021, the world economy showed signs of recovery as the challenging situation
gradually eased with the progress of COVID-19 vaccination. However, the economic situation remains uncertain
as the risk of resurgence in COVID-19 infection is yet to be eliminated due in part to the emergence of a newvariant. The dollar-yen exchange rate moved within the range of ¥107 to ¥115 per US$1.
In the air transportation industry, while demand for domestic flights is recovering with COVID-19 vaccination
ramping up, demand for international flights continues to face a challenging situation. Airlines carried on efforts
to reduce costs, though some began ordering aircraft and increasing staff size in anticipation of a recovery indemand for air transportation. Aircraft manufacturers saw a rise in orders for certain models against the backdrop
of a gradual recovery in air transportation demand, especially for domestic flights.
In the situation in which the end of the COVID-19 pandemic remained uncertain, the Group promoted
business process reforms and measures to enhance the efficiency of its production system on a company-widelevel in preparation for a future recovery in demand for air transportation, aiming to improve quality andprofitability while enhancing the efficiency of its management by reducing cost, limiting investment, andreducing inventory, under the assumption that the current harsh business environment would continue for sometime. In addition, we thoroughly enforced COVID-19 countermeasures while working to reduce physical contact
between employees through remote work, shift work, and the dispersion of work areas at the workplace, andflexibly responded to the drop in workload through measures such as temporary leave of employees andsecondment to companies outside the Group.
In the aircraft interiors business and the aircraft seat business, we redoubled our efforts to enhance theefficiency of the production system and reduce the cost of sales. In the aircraft interiors business, we also worked
to develop products to ensure a clean and hygienic cabin in order to relieve the anxiety felt by passengers onboard.
In the aircraft seat business, we focused on deploying our highly profitable Venture business class seats in otheraircraft models to acquire more orders.
The amount of orders received, which had been stagnant due to a sharp drop in air transportation demandcaused by the COVID-19 pandemic, recorded an increase compared to the same period of the previous fiscal year.
This was because, as the effectiveness of vaccination was confirmed, orders from airlines increased with the
expectation that the spread of COVID-19 would subside.
In the aircraft components business, we took initiatives to improve productivity, while proceeding with thedevelopment of lightweight aircraft components using thermoplastic CFRP.
In the aircraft maintenance business, we aimed to establish a business base capable of generating stable profits
by continuing with initiatives to ensure flight safety and enhance quality, while also endeavoring to acquire orders
for aircraft maintenance for airlines and government and municipal offices.
As a result, on a consolidated basis, during the third quarter of FY 2021, the Company posted net sales of¥26,842 million (down ¥11,277 million compared to the same period of the previous fiscal year), operating lossof ¥1,520 million (an operating loss of ¥7,096 million in the same period of the previous fiscal year), ordinary
loss of ¥1,812 million (an ordinary loss of ¥8,086 million in the same period of the previous fiscal year), and net
loss attributable to shareholders of parent company of ¥852 million (a net loss attributable to shareholders ofparent company of ¥6,416 million in the same period of the previous fiscal year).
Provision for loss on construction contracts of ¥3,733 million for construction to be completed in or after thequarterly fourth quarter of FY 2021 was recognized as of December 31, 2021. The impact of this provision forloss on construction contracts on income (loss) for the quarterly third quarter of FY 2021 was an increase of ¥12
million in cost of sales (provision for loss on construction contracts as of September 30, 2021 was ¥3,720 million)
and, for the cumulative third quarter of FY 2021, an increase of ¥136 million in cost of sales (provision for loss
on construction contracts as of April 1, 2021 was ¥3,596 million).

2

Selling, general and administrative expenses, non-operating income (expenses), and extraordinary income(loss) are as follows:
Selling, general and administrative expenses were ¥5,510 million (an increase of ¥584 million compared tothe same period of the previous fiscal year). This was attributable mainly to an increase in experimentation andresearch expenses stemming primarily from the development of the Venture business class seats for other aircraftmodels, which more than offset decreases in personnel expenses and warranty expenses.
In terms of non-operating income (expenses), an expense of ¥292 million was reported due mainly to anincrease in interest expenses, despite a rise in foreign exchange gains resulting from the depreciation of the yen
in the foreign exchange market from the end of the previous fiscal year (an expense of ¥989 million in the same
period of the previous fiscal year).
As for extraordinary income (loss), an income of ¥417 million was reported (a loss of ¥1,005 million in thesame period of the previous fiscal year), owing principally to ¥675 million recognized in subsidy income under
extraordinary income, such as subsidies for employment adjustment due to the temporary leave of employees,
and ¥140 million recognized in reversal of provision for loss on compensation under extraordinary income. This
more than offset ¥255 million recognized in loss related to COVID-19 under extraordinary loss, which consistedof running costs including fixed costs resulting from the temporary leave of employees, and ¥102 million
recognized in loss on liquidation of business under extraordinary loss, which comprised restoration and othercosts associated with the reorganization of production bases.

3

Business performance by segment is as follows.
[Aircraft Interiors Business]
In the aircraft interiors business, net sales decreased from the same period of the previous fiscal year, as
shipments of galleys and lavatories decreased as a result of production adjustments of the Boeing 787 aircraft, in
addition to aircraft manufacturers being forced to change production schedules due mainly to the impact of the
spread of COVID-19. Nevertheless, an ordinary income was reported despite the decrease in net sales primarily
because the efforts to reduce cost of sales bore fruit, additional sales resulted from specification change requests
from customers to aircraft interiors in certain programs, and foreign exchange gains were recorded.
As a result, the aircraft interiors business posted net sales of ¥15,965 million (down ¥8,914 million comparedto the same period of the previous fiscal year) and ordinary income of ¥66 million (ordinary loss of ¥5,417 million
in the same period of the previous fiscal year).
[Aircraft Seat Business]
In the aircraft seat business, net sales decreased from the same period of the previous fiscal year, chiefly on
account of changes to the delivery dates made by customers mainly as a result of the impact of the spread of
COVID-19, as well as the postponement of shipments of the Venture business class seats to the following quarteror later due in part to the production adjustments of the Boeing 787 aircraft. However, whereas an ordinary loss
was reported due mainly to the decrease in net sales, the loss contracted compared to the same period of theprevious fiscal year as the efforts to reduce cost of sales yielded positive results and the shipments of unprofitablecustom-made products declined.
As a result, the aircraft seat business posted net sales of ¥2,152 million (down ¥4,023 million compared to thesame period of the previous fiscal year) and ordinary loss of ¥1,705 million (ordinary loss of ¥2,458 million in
the same period of the previous fiscal year).
[Aircraft Components Business]
In the aircraft components business, net sales increased from the same period of the previous fiscal year, due
in part to an increase in shipments of CFRP structure parts and aircraft engine parts for commercial aircraft
products. Meanwhile, an ordinary loss was reported due mainly to a decrease in the shipments of profitableproducts, despite the increase in net sales.
As a result, the aircraft components business posted net sales of ¥3,183 million (up ¥427 million compared tothe same period of the previous fiscal year) and ordinary loss of ¥273 million (ordinary loss of ¥212 million in
the same period of the previous fiscal year).
[Aircraft Maintenance Business]
In the aircraft maintenance business, net sales increased from the same period of the previous fiscal year as
the number of completed construction contracts rose for certain programs in aircraft maintenance. Meanwhile,
ordinary income increased from the same period of the previous fiscal year due mainly to the increase in net sales.
As a result, the aircraft maintenance business posted net sales of ¥5,540 million (up ¥1,233 million comparedto the same period of the previous fiscal year) and ordinary income of ¥118 million (up ¥118 million comparedto the same period of the previous fiscal year).
[Others]
In the Others segment, which includes the businesses of the consolidated subsidiary Orange JAMCO
Corporation and consisted chiefly of inter-segment transactions, including assistance work in the aircraft interiors
business, an ordinary loss was reported due mainly to a decline in workloads resulting from the closure of the
production base in Tachikawa.
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 ¥19 million (ordinary income of ¥0 million in the same period of
the previous fiscal year).
4(2) Explanation of Financial Position[Assets, liabilities and net assets]
Total assets as of December 31, 2021 amounted to ¥95,471 million, down ¥5,765 million from the end of theprevious fiscal year. Of such, total current assets decreased by ¥5,382 million from the end of the previous fiscal
year, due mainly to a decrease in notes and accounts receivable – trade, and contract assets (down ¥4,942 million
compared to the end of the previous fiscal year), a decrease in work in process (down ¥3,846 million comparedto the end of the previous fiscal year) and a decrease in raw materials and supplies (down ¥2,408 million
compared to the end of the previous fiscal year), despite an increase in cash and deposits (up ¥4,814 million
compared to the end of the previous fiscal year) and an increase in merchandise and finished goods (up ¥1,978
million compared to the end of the previous fiscal year). Total non-current assets decreased by ¥382 million fromthe end of the previous fiscal year due to a decrease in property, plant and equipment (down ¥512 million
compared to the end of the previous fiscal year) and a decrease in intangible assets (down ¥384 million comparedto the end of the previous fiscal year) as a result of relatively limited investment for the third quarter of FY 2021.
Total liabilities amounted to ¥81,306 million, down ¥3,413 million from the end of the previous fiscal year. This
was attributable primarily to a decrease in short-term loans payable (down ¥871 million compared to the end of
the previous fiscal year), a decrease in electronically recorded obligations – operating (down ¥694 million
compared to the end of the previous fiscal year), and a decrease in long-term loans payable (down ¥660 million
compared to the end of the previous fiscal year).
Total net assets amounted to ¥14,165 million, down ¥2,351 million from the end of the previous fiscal year.
This was due primarily to a decrease in retained earnings as a result of the application of the Revenue Recognition
Accounting Standard, etc. and net loss attributable to shareholders of parent company. As a result, the equity ratio
stood at 14.5%.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
The consolidated financial results forecast for FY 2021 (from April 1, 2021 to March 31, 2022) announced
on May 11, 2021, has been revised based on recent trends in operating results.

5

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Thousand yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Advances received
Accrued expense-salary
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Liability for employee retirement benefits
Provision for loss on compensation
Provision for product warranties
Other
Total non-current liabilities
Total liabilities

6

As of December 31, 2021

5,275,305
21,092,693

10,089,952--

16,149,795

657,983
25,880,634
20,869,999
3,268,013(111,660)
76,932,968

2,636,374
22,034,093
18,461,556
2,301,415(123,110)
71,550,078

12,782,303
1,692,365
9,829,231
24,303,899
101,236,868

12,269,738
1,308,139
10,343,906
23,921,784
95,471,863

3,726,562
3,482,624
48,118,560
1,000,000
54,034
5,516,822
276,135
4,102,485
5,095,895
71,373,119

4,077,132
2,788,177
47,247,460
960,000
81,993
6,330,027
500,500
3,733,407
3,829,097
69,547,797

3,000,000
6,919,824
1,452,434
1,166,789
807,220
13,346,268
84,719,388

2,340,000
6,649,804
857,547
1,166,789
744,285
11,758,427
81,306,224

(Thousand yen)
As of March 31, 2021
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

7

As of December 31, 2021

5,359,893
4,318,925
6,360,683(31,205)
16,008,296

5,359,893
4,318,925
3,874,448(31,205)
13,522,061

156,385
17,776

187,493(21,302)110,474

36,05256,074210,214
298,969
16,517,480
101,236,868

332,739
310,837
14,165,638
95,471,863

(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 2020

The third quarter of FY 2021

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

26,842,790
22,852,835
3,989,955
5,510,139(1,520,183)

10,612
1,949
-

9,803
2,580
130,189

14,24158,782

82,18936,72961,027
206,749

47,292
27,991
67,568344,210

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

403,079
181,933
51,863636,876(1,812,850)

626,263626,263

675,925
1,444
140,616
817,986

27,0171,253,601
350,984
1,631,603(9,091,889)
5,026(2,734,062)(2,729,036)(6,362,853)
53,441

31,747
255,471
10,987
102,544
400,751(1,395,615)
56,248(52,602)(547,020)(543,374)(852,240)
344(6,416,294)(852,585)

Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating income (loss)
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
Compensation expenses
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Subsidy income
Reversal of extra retirement payments
Reversal of provision for loss on compensation
Total extraordinary income
Extraordinary loss
Loss on disposal of non-current assets
Loss related to COVID-19
Extra retirement payments
Loss on liquidation of businessTotal extraordinary loss
Income (loss) before taxes
Income taxes – current
Income taxes – refund
Income taxes – deferred
Total income taxes
Net income (loss)
Net income attributable to non-controlling interests
Net income (loss) attributable to shareholders of parent
company

8Quarterly Consolidated Statements of Comprehensive Income
Third Quarter of the Fiscal Year (from April 1 to December 31)(Thousand yen)
The third quarter of FY 2020

The third quarter of FY 2021

(6,362,853)(852,240)

42,658(156,520)
41,172(72,689)(6,435,543)

31,108(21,302)104,221
20,021
134,049(718,191)(6,467,443)(730,059)

31,90011,868Net income (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Adjustment for employee retirement benefits
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to shareholders ofparent company
Comprehensive income attributable to non-controllinginterests9(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Notes in the case of significant changes in shareholders’ equity)
There is no relevant information.

(Changes in accounting policies)
The third quarter of FY 2021
(from April 1, 2021 to December 31, 2021)
The Group has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020, hereinafter referred to as the “Revenue Recognition Accounting Standard”) since
the beginning of the quarterly first quarter of FY 2021, and recognizes revenue in the amount expected
to be received in exchange for promised goods or services at the time the control of those goods orservices is transferred to customers. The main changes resulting from the application of the Revenue
Recognition Accounting Standard are as follows:(1) Revenue from export transactions involving delivery of goods was previously recognized at thetime of shipment; however, revenue is recognized at the time the burden of risk is transferred tocustomers, in accordance with trade terms defined mainly by Incoterms rules.
(2) Revenue from sales related to design and development was previously recognized in proportion to
the number of aircraft for which our products are adopted; however, revenue is recognized in alump sum at the time of shipment of our products for the aircraft for which our products are
adopted for the first time.
The Company has applied the Revenue Recognition Accounting Standard, etc. in accordance withthe transitional treatment as provided for in the proviso of Paragraph 84 of the Revenue Recognition
Accounting Standard. The cumulative effect of retroactively applying new accounting policies prior to
the beginning of the quarterly first quarter of FY 2021 is added to or deducted from retained earnings at
the beginning of the quarterly first quarter of FY 2021, and new accounting policies have been applied
to the balance from the beginning of the said period.
As a result, for the third quarter of FY 2021, net sales decreased by ¥1,584,489 thousand, cost of
sales decreased by ¥1,425,171 thousand, and operating loss, ordinary loss, and loss before taxes eachincreased by ¥159,317 thousand, compared with the previous method. Retained earnings at the
beginning of the period decreased by ¥1,633,650 thousand.
As a result of the application of the Revenue Recognition Accounting Standard, etc., “notes andaccounts receivable – trade,” stated under “current assets” in the consolidated balance sheets for theprevious fiscal year, is included in “notes and accounts receivable – trade, and contract assets” from thequarterly first quarter of FY 2021. The Company has made no reclassification for the previous fiscal
year by using the new presentation method in accordance with the transitional treatment as provided
for in Paragraph 89-2 of the Revenue Recognition Accounting Standard. Furthermore, the Company
does not state information on the breakdown of revenue generated from contracts with customers forthe third quarter of FY 2020 in accordance with the transitional treatment as provided for in Paragraph28-15 of the “Accounting Standard for Quarterly Financial Reporting” (ASBJ Statement No. 12, March
31, 2020).

10

The third quarter of FY 2021
(from April 1, 2021 to December 31, 2021)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ
Statement No. 30, July 4, 2019, hereinafter referred to as the “Fair Value Measurement AccountingStandard”), etc. since the beginning of the quarterly first quarter of FY 2021, applying new accounting
policies defined in the Fair Value Measurement Accounting Standard, etc. over the future in accordancewith the transitional treatment as provided for in Paragraph 19 of the Fair Value Measurement
Accounting Standard and in Paragraph 44-2 of the “Accounting Standard for Financial Instruments”(ASBJ Statement No. 10, July 4, 2019). This application has no impact on the Company’s quarterly
consolidated financial statements.
(Additional information)
The third quarter of FY 2021
(from April 1, 2021 to December 31, 2021)
The Group makes accounting estimates for items including impairment loss on non-current assets
and recoverability of deferred tax assets, based on information available at the time of preparation of
the quarterly consolidated financial statements.
In making accounting estimates, the Group has formulated its sales plan with the assumption thatair passenger demand will recover to pre-COVID-19 levels in or around 2024. As for income, theGroup has made accounting estimates based on the expectation that its income will recover to the levelof FY 2019, before the COVID-19 pandemic, in FY 2022 due to various measures, including businessprocess reforms.
There are no significant changes from the content of the accounting estimates related to the
COVID-19 pandemic included in “Notes (Significant accounting estimates)” in our securities report forthe previous fiscal year.
(Quarterly Consolidated Statements of Income)Subsidy income¥675,925 thousand in subsidy income, such as subsidies for employment adjustment due to the temporary leaveof employees, has been recognized under extraordinary income.
Loss related to COVID-19¥255,471 thousand in loss related to COVID-19 has been recognized under extraordinary loss for running costs,
including fixed costs resulting from the temporary leave of employees, as operations significantly declined due tothe global spread of COVID-19 and a declaration of a state of emergency issued by the government.
Loss on liquidation of business¥102,544 thousand in loss on liquidation of business has been recognized under extraordinary loss for restoration
costs involving reorganization of production bases.

11

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

Reportable segment
Aircraft
Aircraft
Aircraft Seat
Components MaintenanceBusiness
Business
Business

Total

Others(Note)

Total

24,880,363

6,175,986

2,756,163

4,307,610

38,120,124

3

38,120,127

341,111

166,003

2,257

11,948521,320

81,132602,453

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

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

2,758,421(212,457)

4,319,559
599

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

81,136574

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

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

II. For the third quarter of FY 2021

1. Information on net sales and income (loss) and information on breakdown of revenue by reportable segment(Thousand yen)
Aircraft
Interiors
Business
Net sales
Revenue generated fromcontracts with customers
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

15,965,633

2,152,719

3,183,706

5,540,621

26,842,679

111

26,842,790

15,965,633

2,152,719

3,183,706

5,540,621

26,842,679

111

26,842,790

334,193-

5,331

11,864351,390

52,761

404,152

16,299,827
66,101

2,152,719(1,705,572)

3,189,038(273,054)

5,552,485
118,867

27,194,070
52,872(1,793,657) (19,192)

27,246,943(1,812,850)(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 cleaning and assistance work in the Company’s facilities, which is one of thecorporate social responsibilities.
2. Differences between the total amount of income (loss) of reportable segments and the amounts in the Quarterly
Consolidated Statement of Income and the major details of such differences(Matters relating to adjustment of differences)(Thousand yen)
IncomeReportable segments total
Income of Others
Ordinary income in the Quarterly Consolidated Statement of
IncomeAmount(1,793,657)(19,192)(1,812,850)

3. Information on impairment loss on non-current assets and goodwill by reportable segment
There is no relevant information.
4. Changes in the measurement method for reportable segments
As stated in “Changes in accounting policies,” the Company has applied the Revenue Recognition AccountingStandard, etc. since the beginning of the quarterly first quarter of FY 2021 and changed the accounting method forrevenue recognition. The measurement method for the amounts of income (loss) by reportable segment has beenchanged accordingly.
As a result, net sales of aircraft interiors business decreased by ¥1,434,656 thousand and segment income
decreased by ¥179,170 thousand, net sales of aircraft seat business decreased by ¥124,741 thousand and segment
loss decreased by ¥26,294 thousand, and net sales of aircraft components business decreased by ¥25,091 thousandand segment loss increased by ¥6,441 thousand for the third quarter of FY 2021, compared with the previous method.

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3. Others
Significant Events Regarding Going Concern Assumption
The Group has suffered a significant impact from the spread of COVID-19, including a drop in sales of cabin
retrofit interiors and spare parts for airlines due to a decrease in aircraft operations, in addition to a significant dropin shipments of interiors and seats following the reduced production and changes in production schedules by aircraft
manufacturers. Operating loss, net loss attributable to shareholders of parent company, and negative cash flows fromoperating activities were recognized in the previous fiscal year, and in the third quarter of FY 2021, operating loss
and net loss attributable to shareholders of parent company have been recognized. As a result, the Group understands
that there are events or conditions that may cast significant doubt on going concern assumption.
Under such an unprecedented situation, the Group has carried out a review of the production plan, reorganizedproduction bases, and is making efforts to reduce fixed costs through temporary leave of employees and secondment
to companies outside the Group and limiting investment while striving to enhance the efficiency of its management
by reducing inventories.
The Group has determined that passenger demand will recover in stages in the future, based on the demand forecastby the International Air Transport Association. Inquiries and orders for cabin retrofit interiors and seats from airlines
are recovering. The Group expects that shipments of our products will increase with the recovery in passenger
demand and the Group’s operating results will recover.
In addition, by enhancing close coordination with partner financial institutions, including the main bank, the Group
has secured ongoing support such as increases in borrowing limits and the continuation of loans. As the Groupsecured necessary financing limits, it has determined that there are no material uncertainties regarding going concern
assumption.

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