JAMCO : 【Delayed】Consolidated Financial Results for the Third Quarter of the Fiscal Year 2021 Ending March 31, 2022

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: [phone]

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	Ordinary income	Net income attributable
				to shareholders of
										parent company
	For the third quarter		Million yen	%	Million yen	%	Million yen	%	Million yen	%
	of
	Fiscal year 2021		26,842	(29.6)	(1,520)	-	(1,812)	-	(852)	-
	Fiscal year 2020		38,120	(41.7)	(7,096)	-	(8,086)	-	(6,416)	-
(Note) Comprehensive income: The third quarter of fiscal year 2021: ¥(718) million [-%]
				The third quarter of fiscal year 2020: ¥(6,435) million [-%]
			Net income per share	Diluted net income
			per share
	For the third quarter				Yen		Yen
	of
	Fiscal year 2021				(31.78)		-
	Fiscal year 2020				(239.19)		-
(2) Consolidated Financial Position
				Total assets	Net assets	Equity ratio
				Million yen	Million yen		%
	As of December 31, 2021		95,471		14,165		14.5
	As of March 31, 2021			101,236		16,517		16.0

(Reference) Equity: As of December 31, 2021: ¥13,854 million As of March 31, 2021: ¥16,218 million

2. Dividend distribution

Dividend distribution per share

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year 2020

-

0.00

-

0.00

0.00

Fiscal year 2021

-

0.00

-

Fiscal year 2021

0.00

0.00

(Planned)

(Note) Revision to the plan of dividend

distribution announced most recently: None

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 income

	Net sales	Operating income	Ordinary income	attributable to		Net income
	shareholders of		per share
							parent company
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	40,000	(20.1)	(3,300)	-	(3,500)	-	(2,400)	-	(89.47)

(Note) Revision to the forecast of consolidated financial results announced most recently: Yes

• 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

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 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
3. Number of common shares issued
4. 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

1. 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 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 .....................................................................................................	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 .......................................................	14

1

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 new variant. 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 in demand 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-wide level in preparation for a future recovery in demand for air transportation, aiming to improve quality and profitability while enhancing the efficiency of its management by reducing cost, limiting investment, and reducing inventory, under the assumption that the current harsh business environment would continue for some time. 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, and flexibly responded to the drop in workload through measures such as temporary leave of employees and secondment to companies outside the Group.

In the aircraft interiors business and the aircraft seat business, we redoubled our efforts to enhance the efficiency 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 other aircraft models to acquire more orders.

The amount of orders received, which had been stagnant due to a sharp drop in air transportation demand caused 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 the development of lightweight aircraft components using thermoplastic CFRP.

In the aircraft maintenance business, we aimed to establish a business base capable of generating stable profits by continuing with initiatives to ensure flight safety and enhance quality, while also endeavoring to acquire orders for aircraft maintenance for airlines and government and municipal offices.

As a result, on a consolidated basis, during the third quarter of FY 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 loss of ¥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 of parent 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 the quarterly fourth quarter of FY 2021 was recognized as of December 31, 2021. The impact of this provision for loss 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).

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