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 rear galleys 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 by Boeing 777X. Meanwhile, althou gh ordinary income was somewhat impacted by the increase in net sales, it was affected by a decrease in ship ments 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 ¥56,869 million (up ¥5,876 million compared to the previous fiscal year) and ordinary income of ¥6,113 million (down ¥680 million compared to the previous fiscal year).

Aircraft Seat Business

In the aircraft seat business, net sales decreased from the previous fiscal year due mainly to the postponement of shipments of some construction to the next fiscal year and thereafter. Although ordinary income (loss) was affected by the increase in costs, mainly reflecting an increase in the cost of some programs, the increase in research and development expenses, and recognition of c ompensation expenses, it improved from the previous fiscal year due mainly to an improvement in profitability as a result of improved production efficiency and a reaction to the impact of an increase in the initial costs of some programs in the previous fiscal year.

As a result, the aircraft s eat business posted net sales of ¥12,175 million (down ¥308 million compared to the pre vious fiscal year) and ordinary loss of ¥3,143 million (ordinary loss of ¥3,641 million in 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 previous fiscal year due to an increase in shipments of aircraft engine parts. Meanwhile, ordinary income decreased due mainly to the impact of a decrease in shipments of heat exchangers and other equipment, despite our efforts to improve production efficiency.

As a result, the aircraft components business posted net sales of ¥6,597 million (up ¥284 million compared to the previous fiscal year) and ordinary income of ¥110 million (down ¥105 million compared to the previous fiscal year).

Aircraft Maintenance Business

In the aircraft maintenance business, despite a decrease in completed construction for aircraft maintenance, net sales increased from the previous fiscal year due to continued solid performance of equipment maintenance. Ordinary income increased due to initiatives to improve profita bility, in addition to an increase in net sales.

As a result, the aircraft maintenance business posted net sales of ¥8,426 million (up ¥423 million compared to the previous fiscal year) and ordinary income of ¥210 million up ¥70 million compared to 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 previous fiscal year) and ordinary loss of ¥0 million (ordinary loss of ¥4 million in the same period of the previous fiscal year).