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

Consolidated Financial Results

for the Second Quarter of the Fiscal Year 2021

Ending March 31, 2022

[Japanese GAAP]

November 5, 2021

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: November 8, 2021

The start date of payout of dividend: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes (for institutional investors)

						(Amounts are rounded down to the nearest million yen.)
1. Consolidated Operating Results for the Second Quarter of the Fiscal Year 2021 (from April 1, 2021 to
	September 30, 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 second		Million yen	%	Million yen	%	Million yen	%	Million yen	%
	quarter of
	Fiscal year 2021		18,477	(28.5)	(511)	-	(687)	-	(47)	-
	Fiscal year 2020		25,860	(36.2)	(4,591)	-	(5,409)	-	(4,294)	-
(Note) Comprehensive income: The second quarter of fiscal year 2021: ¥41 million [-%]
				The second quarter of fiscal year 2020: ¥(4,396) million [-%]
			Net income per share	Diluted net income
			per share
	For the second				Yen		Yen
	quarter of
						-
	Fiscal year 2021				(1.76)
	Fiscal year 2020				(160.10)		-
(2) Consolidated Financial Position
				Total assets	Net assets	Equity ratio
				Million yen	Million yen		%
	As of September 30, 2021		95,899		14,925		15.2
	As of March 31, 2021			101,236		16,517		16.0

(Reference) Equity: As of September 30, 2021: ¥14,622 million As of March 31, 2021: ¥16,218 million

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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	43,500	(13.1)	(3,980)	-	(4,360)	-	(3,120)	-	(116.31)

(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 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 September 30, 2021: 26,863,974 shares

As of March 31, 2021: 26,863,974 shares

2) Number of treasury stock:

As of September 30, 2021: 38,964 shares

As of March 31, 2021: 38,964 shares

1. Average number of common shares outstanding: 2nd quarter of FY 2021: 26,825,010 shares 2nd quarter of FY 2020: 26,825,042 shares

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*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.

The Company intends to hold a briefing session for institutional investors on November 24, 2021. The materials distributed at the briefing session are scheduled to be posted on the Company's corporate website.

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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) Quarterly Consolidated Statements of Cash Flows .........................................................................	10
(4)	Notes to Quarterly Consolidated Financial Statements ...................................................................	11
	(Notes on going concern assumption) ........................................................................................	11
	(Notes in the case of significant changes in shareholders' equity) .............................................	11
	(Changes in accounting policies) ..............................................................................................	11
	(Additional information) ............................................................................................................	12
	(Quarterly Consolidated Statements of Income) ........................................................................	12
	(Segment information, etc.) ........................................................................................................	13
3. Others..................................................................................................................................................	15
	Significant Events Regarding Going Concern Assumption.......................................................	15

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1. Qualitative Information on Quarterly Financial Results for the Period under Review

(1) Explanation of Operating Results

During the second quarter of FY 2021, some parts of the world economy remained in a challenging situation amid the global spread of COVID-19. However, as the promotion of COVID-19 vaccination and other countermeasures were effective in reducing the spread of COVID-19, economies showed signs of recovery. The dollar-yen exchange rate moved within the range of ¥107 to ¥111 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 second quarter of FY 2021, the Company posted net sales of ¥18,477 million (down ¥7,382 million compared to the same period of the previous fiscal year), operating loss of ¥511 million (an operating loss of ¥4,591 million in the same period of the previous fiscal year), ordinary loss of ¥687 million (an ordinary loss of ¥5,409 million in the same period of the previous fiscal year), and net loss attributable to shareholders of parent company of ¥47 million (a net loss attributable to shareholders of parent company of ¥4,294 million in the same period of the previous fiscal year).

Provision for loss on construction contracts of ¥3,720 million for construction to be completed in or after the quarterly third quarter of FY 2021 was recognized as of September 30, 2021. The impact of this provision for loss on construction contracts on income (loss) for the quarterly second quarter of FY 2021 was a decrease of ¥865 million in cost of sales (provision for loss on construction contracts as of June 30, 2021 was ¥4,586 million) and, for the cumulative second quarter of FY 2021, an increase of ¥124 million in cost of sales (provision for loss on construction contracts as of April 1, 2021 was ¥3,596 million).

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