Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2017
(Three Months Ended June 30, 2016) (Based on J-GAAP)
August 12, 2016
Company name:Tamagawa Holdings Co., Ltd.

Listing:

JASDAQ (Tokyo Stock Exchange)

Stock Code:
6838
URL:
http://www.tmex.co.jp/
Representative:
Toru Masuzawa, President
Contact:
Katsuya Kubo, Finance and Accounting Division Manager
Tel: +81-3-6435-6933
Scheduled date of filing Quarterly Securities Report:
August 12, 2016
Scheduled Commencement Date of Dividend Payout:—Explanatory documents supplemental to the abridged Quarterly Financial Statement: None
Quarterly results briefing: None
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2017
(April 1, 2016 – June 30, 2016)(1) Consolidated results of operations (three months)(Percentages represent year-over-year changes)
Net sales

Operating income

Million yen

1Q FY 2017
476
1Q FY 2016
682
Note: Comprehensive income (million yen):%Million yen(30.2)(18.3)(104)(22)

Net incomeper share
1Q FY 2017
1Q FY 2016

Profit attributable toowners of parent

Ordinary income

Million yen%—(128)—(90)
—(32)
—(37)
1Q FY 2017: 95 (—%) 1Q FY 2016: -38 (%Million yen%———%)

Diluted net
income per share
YenYen(2.15)(0.92)——(2) Consolidated Financial Position
Total assets

Net assets

Million yen

1Q FY 2017
FY 2016
Reference: Shareholders' equity (million yen):

Equity ratio

Million yen

6,563
7,163%

3,120
3,294
1Q FY 2017: 3,120

47.5
45.8
FY 2016: 3,278

2. Dividends
1Q-endDividends
pershare3Q-endInterimYenYenYear-end

Yen

AnnualYen

Yen

FY 2016
—0.00
—
1.50
1.50
FY 2017—FY 2017 (forecasts)
0.00—
1.00–3.00
1.00–3.00(Note) 1. Revisions from recently released dividend forecast: None
2. Dividend distribution sources in fiscal year ending March 31, 2016 and fiscal year ending March 31, 2017 include thecapital surplus.

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2017 (April 1, 2016 – March 31, 2017)
Net sales
Million yen

Operating income%(Percentages indicate year-on-year changes)
Profit attributable toNet income
Ordinary incomeowners of parent
per share

Million yen%

Million yen%

Million yen%

Yen

Year
6,633
(8.6)
354
to from latest released dividend forecast: None(Note) Revisions
March 31,
2017

26.8

260

23.3

192

16.4

4.58

*Notes(1)

Changes in important subsidiaries during the period under review: None
(Changes in subsidiaries accompanying change in the scope of consolidation)
New:
None (Company name:Excluded: None (Company names:(2)))

Application of special accounting treatment in the preparation of quarterly consolidated financial statements:None(3)

Changes in accounting principles, estimates and restatement
1) Changes in accounting principles caused by revision of accounting standards: Yes
2) Changes in accounting principles other than those mentioned above: None
3) Changes in accounting estimates: None
4) Restatement: None

Note: For details, refer to "2. Matters concerning summary information (Notes) (3) Accounting changes, changes of estimates, andretrospective restatements" on page 4 of the attached materials.

(4)

Number of shares issued and outstanding(shares of common stock)1) Number of shares outstanding(including treasury stock) at end of period
2) Number of treasury stock at end of period
3) Average number of shares outstanding during
the period (three months)

1Q FY 2017

42,598,000 shares

FY 2016

42,598,000 shares

1Q FY 2017614,245 shares

FY 2016

614,245 shares

1Q FY 2017

41,983,755 shares

1Q FY 2016

41,416,755 shares* Presentation regarding implementation status of quarterly review proceduresThis quarterly summary of financial statements is exempt from the quarterly review procedures provided for in theFinancial Instruments and Exchange Act. As of the time of disclosure of this quarterly summary of financialstatements, quarterly review procedures of the quarterly consolidated financial statements have not yet concluded.

* Explanation and other explanatory notes regarding the appropriate use of financial forecasts
Statements on future results projections, etc., contained in these materials are based on information currently
available to the Company as well as certain premises judged reasonable at that time. Actual results, etc., cansignificantly differ from projections due to various factors. For important information concerning the assumptionsthat serve as premises of results projections and concerning the use of results projection, refer to "Information
concerning forward-looking statements such as consolidated results projections, etc." on page 3 of the attachedmaterials.

Tamagawa Holdings Co., Ltd. (6838) / Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2017
(Three Months Ended June 30, 2016) (Based on J-GAAP)

3.

Quarterly Consolidated Financial Statements(1)

Quarterly consolidated balance sheets(In thousand yen)
FY 2016 (consolidated)(As of March 31, 2016

1Q FY 2017 (consolidated)(As of June 30, 2016)

AssetsCurrent Assets
Cash and deposits

2,736,869

2,008,192

Notes and accounts receivable – trade
Merchandise and finished goods

984,590
57,814

893,333
54,906Work in process
Raw materials and supplies

147,522
112,786

188,540
119,106

Deferred tax assets
Others54,664
126,643

73,896
143,528

Total current assets
Non-current Assets

4,220,891

3,481,504

462,220456,364

Accumulated depreciation(305,319)(304,107)

Buildings and structures, net

156,901

152,256

Machinery, equipment and vehicles
Accumulated depreciation

1,599,679(192,247)

1,542,199(147,933)

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation

1,407,431
718,289(630,131)

1,394,266
719,716(638,202)

Tools, furniture and fixtures, net

88,15781,514652,400
159,018

654,543
164,460

2,463,909

2,447,040

231,694
77,393

215,552
79,757

Property, plant and equipment
Buildings and structures

Land
Construction in progress
Total property, plant and equipment
Intangible Assets
Business rights
Software
Others00

Total intangible assets

309,088295,309

Investments and other assets
Investment securities

16,601

69,122Long-term loans
Deferred tax assets—
39,678106,174
43,656

OthersAllowance for doubtful accounts

120,960(8,700)127,511(8,700)Total investments and other assets
Total Non-current Assets

168,540
2,941,538

337,7643,080,114

Deferred Assets
Share issuance cost

1,177

2,172

Total deferred assets
Total Assets

1,177
7,163,607

2,172
6,563,790

3

Tamagawa Holdings Co., Ltd. (6838) / Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2017
(Three Months Ended June 30, 2016) (Based on J-GAAP)(In thousand yen)
FY 2016 (consolidated)(As of March 31, 2016)

1Q FY 2017 (consolidated)(As of June 30, 2016)

Liabilities
Current Liabilities
Notes and accounts payable – trade

321,042289,324

Short-term loans payable
Current portion of bonds

974,176
20,00074,40020,000Current portion of long-term loans payable
Lease obligations

400,940
49,367420,982
70,432

Accounts payable - other
Income taxes payable

100,642
28,165111,920
8,599

Advances received
Provision for bonuses

12,21037,241

117,718
40,357

Others104,714

67,996

2,048,500

1,221,731

20,00020,000Long-term loans payable
Lease obligations

592,004
925,239

618,951
1,268,460

Deferred tax liabilities
Net defined benefit liability

320
145,592—
151,394

Asset retirement obligations
Others37,024
100,173

35,794
126,957

Total non-current liabilities

1,820,355

2,221,558

3,868,855

3,443,289

Capital stock
Capital surplus

1,677,088
1,057,014

1,677,088
994,039

Retained earnings
Treasury shares

610,512(61,279)

520,176(61,279)

Total shareholders’ equity
Accumulated Other Comprehensive Income

3,283,336

3,130,024

Valuation difference on available-for-salesecuritiescurrency translation adjustment
Foreign

677(5,587)(29)(9,622)

Total accumulated other comprehensive income

Total current liabilities
Non-current Liabilities
Bonds payable

Total Liabilities
Net Assets
Shareholders’ Equity(4,910)(9,652)

Subscription Rights to Shares
Total Net Assets

16,326
3,294,752

129
3,120,501

Total Liabilities and Net Assets

7,163,607

6,563,790

4

Tamagawa Holdings Co., Ltd. (6838) / Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2017
(Three Months Ended June 30, 2016) (Based on J-GAAP)(2)

Quarterly consolidated statements of income and Quarterly consolidated statements of comprehensive income(Quarterly consolidated statements of income)(Consolidated first quarter period)(In thousand yen)
1Q FY2016(from April 1, 2015 toJune 30, 2015)

1Q FY2017(from April 1, 2016 toJune 30, 2016)

Net Sales
Cost of Sales

682,225457,286

476,262
343,779

Gross Profit
Selling, General and Administrative Expenses224,938
247,056

132,483
236,886

Operating losses
Non-operating Income
Interest income
Dividend income(22,117)(104,402)

52—

164
0

Foreign exchange gains
Others

1,524
5,812

—
2,750

Total non-operating income
Non-operating Expenses
Interest expenses
Foreign exchange losses

7,389

2,915

15,087—

20,609
5,193

2,413

1,568

OthersTotal non-operating expense
Ordinary losses
Extraordinary Income
Gain on sales of non-current assets
Gain on reversal of subscription rights to shares
Total extraordinary income
Extraordinary Losses
Others17,501

27,371(32,229)(128,858)

——

1,215
16,326—

17,5410—0—(32,229)
5,931
(183)

(111,316)
2,250(23,231)

5,748(20,980)

Net Loss for the Quarter
Net Loss for the Quarter Attributable toNon-controlling Interests(37,977)—(90,336)—

Net Loss for the Quarter Attributable to
Owners of Parent(37,977)(90,336)

Total extraordinary losses
Loss for the Quarter Before Income Taxes andMinorityInterests
Income Taxes- Current
Income Taxes - Deferred
Total Income Taxes

5Tamagawa Holdings Co., Ltd. (6838) / Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2017
(Three Months Ended June 30, 2016) (Based on J-GAAP)(Quarterly consolidated statements of comprehensive income)(Consolidated first quarter period)(In thousand yen)
1Q FY2016(from April 1, 2015 toJune 30, 2015)

1Q FY2017(from April 1, 2016 toJune 30, 2016)

Net Loss for the Quarter
Other Comprehensive Income
Valuation difference on available-for-salesecurities(37,977)(90,336)

(8)

(706)

Foreign currency translation adjustment(655)(4,034)

Total other comprehensive income(663)(4,741)

Comprehensive Income for the Quarter(Breakdown)Comprehensive income for the quarter
attributable to owners of parent
Comprehensive income for the quarter
attributable to non-controlling interests(38,641)(95,077)(38,641)(95,077)——6

Tamagawa Holdings Co., Ltd. (6838) / Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2017
(Three Months Ended June 30, 2016) (Based on J-GAAP)(Segment information, etc.)
Segment information
I First quarter of the previous fiscal year (From April 1, 2015, to June 30, 2015)
Sales and income (loss) information stated by reportable segment(In thousand yen)
Reportable Segment
Electronic andCommunication
Device Business

Renewable
Energy System
Sales BusinessSolar Power
Plant Business

Geothermal
Power PlantBusiness

Total

Adjustment
amount(Note 1)

Amount statedon the quarterly
consolidated
statement ofincome (Note 2)

Net Sales
Sales to externalcustomers

594,280

17,29270,652—682,225—682,225

Internal sales ortransfers between
segments

14,482———

14,482(14,482)—

Total

608,763

17,29270,652—696,708(14,482)

682,225

Segment income (loss)

4,659(46,057)

29,096(20)(12,322)(9,794)(22,117)

1. The adjustment of −9,794 thousand yen to segment income (loss) consists of −3,182 thousand yen for depreciation
expenses and −6,612 thousand yen for group management division losses not allocated to operating segments.
2. Segment income (loss) matches the operating loss stated on the quarterly consolidated statement of income.

Notes:

II. First quarter of the current fiscal year (From April 1, 2016, to June 30, 2016)
Sales and income (loss) information by reportable segment(In thousand yen)
Reportable Segment
Adjustment
amount(Note 1)

Amount statedon the quarterly
consolidated
statement ofincome (Note 2)

476,262—476,262

—

—

—

—

—

476,262—476,262

Electronic andCommunication
Device Business

Renewable
Energy System
Sales BusinessSolar Power
Plant Business

Geothermal
Power Plant
Business

401,591

7,540

67,130————401,591

7,540

67,130Total

Net Sales
Sales to externalcustomers
Internal sales ortransfers between
segments
Total

Segment(22,392)(64,338)
28,547—(58,183)(46,219)(104,402)
income(loss) 1. The adjustment of -46,219 thousand yen to segment income (loss) consists of -29 thousand yen for depreciation charges,Notes:etc., -35,000 thousand yen for dividends, and -11,189 in income (loss) of the group administration function not attributable
to operating segments.
2. Segment income (loss) matches the operating loss stated on the quarterly consolidated statement of income.

10