We are implementing comprehensive measures to enhance compliance, raise quality awareness, and improve in every aspect while aiming to steadily grow earnings in an expanding market.

In the air transportation industry, in addition to recovery in domestic flight demand, a gradual recovery is seen in demand for international flights as countries do away with entry restrictions, and some airlines have begun to return out-of-service aircraft to service and place a large order of new aircrafts. Aircraft manufacturers, as well, are working on increasing production of aircrafts with the recovery of air passenger demand.

As air passenger demand shows recovery in these ways, the Group has sought to achieve readiness for the rebound in demand by transferring back employees seconded to companies outside the Group and beginning to recruit new graduates. In the production process, we continued activities to improve operational efficiency in preparation for further demand rebound, initiated plans to expand the production capacity and functions of JAMCO PHILIPPINES, and to strengthen our supply chain both in Japan and overseas. In addition, we actively worked on sustainability initiatives.

In the aircraft interiors business, the recovery in airline passenger demand has led to an increase in demand for maintenance parts and cabin modification in order to utilize aircraft owned by airlines, and we strengthened efforts toward a stronger production organization to meet the demand. To ease the anxiety of passengers onboard, we carried out product development for ensuring a clean and hygienic cabin and conducted research and proposals with a view to expanding into galleys, lavatories, and seats.

In the aircraft seat business, we devoted efforts to readying versions of the highly profitable Venture business class seat for additional aircraft types, as well as to the development of the next generation Quest for Elegance business class seat.

In the aircraft components business, we took initiatives to improve productivity, and continued with development of lightweight aircraft components using thermoplastic CFRP and expansion in application of CFRP components into fields other than the aircraft sector.

In the aircraft maintenance business, we aimed to strengthen 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 for government and municipal offices.

As a result, on a consolidated basis, during FY 2022, the Company posted net sales of ¥47,225 million (up ¥8,146 million compared to the previous fiscal year), operating income of ¥1,733 million (an operating loss of ¥3,174 million in the previous fiscal year), ordinary income of ¥1,127 million (an ordinary loss of ¥3,512 million in the previous fiscal year), and net income attributable to shareholders of parent company of ¥2,174 million (a net loss attributable to shareholders of parent company of ¥4,081 million in the previous fiscal year).
Provision for loss on construction contracts of ¥4,280 million for construction to be completed in or after the next fiscal year was recognized at the end of FY 2022. The impact of this provision for loss on construction contracts on income (loss) for the quarterly fourth quarter of FY 2022 was a decrease of ¥134 million in cost of sales (provision for loss on construction contracts as of December 31, 2022 was ¥4,414 million) and, for FY 2022, an increase of ¥451 million in cost of sales (provision for loss on construction contracts at the end of the previous fiscal year was ¥3,828 million).