FY2021 March The 3Q Summary of Accounting Statements[Japanese Standards] (consolidated)
Listed company nameTamagawa Holdings Co., Ltd.

February 12, 2021

Tokyo
6838
URL
https://www.tmex.co.jp(Title) President(Name)
Toru Masuzawa
Financing Accounting Dept
Contact person(Title)(Name)
Masumi Sekiguchi (TEL) 03-6435-6933
General Manager
Quarterly report to be submitted： November. 12, 2021
Dividends payment to be started： －Preparation of supplementary explanation document for the quarterly accounting statement：Yes
Explanatory meeting for the quarterly accounting statement：Yes
Exchange

Code No.
Representative(amount under. mil yen rounded off))

1.Consolidated performance of FY 2021 Mar.: 3Q (from Apr 1, 2020 to Dec. 31, 2020)(1) Consolidated management result (cumulative)
Sales amountmil.yen(% indication: change compared with the same quarter of the previous year)
Quarterly profit
Operating profit
Ordinary profit
belonging to the parent
company’s shareholders%

mil.yen%mil.yenFY2021 Mar. 3Q
3,314
147 △62.4
92△8.8
FY2020 Mar. 3Q
3,633
46.8
391
278
－
(Note) Comprehensive profit: FY2021 Mar. 3Q
65mil.yen( △69.8 %) FY2020 Mar.3Q
Quarterly net profit per
Quarterly net profit per
share after issuable
share
share adjustment
yen

FY2021 Mar. 3Q
FY2020 Mar. 3Q%

mil.yen△66.9－
215mil.yen(

69
216
－%)

%

△67.8
－

yen

13.00
51.18

12.24
45.90

(2) Consolidated financial status
Gross asset
FY2021 Mar. 3Q
FY2020 Mar.
(Reference) Own capital:

Net asset
mil.yenFY2021 Mar. 3Q

Own capital ratio
mil.yen

9,907
9,423
4,873mil yen

%

4,885
4,156
FY2020 Mar.

49.2
44,1
4,154mil yen

2. Status of dividends
Annual dividends
End 1QEnd 2Qyen

FY2020 Mar.
FY2021 Mar.

End 3Q
yen

0.00
0.00

－
－

Term endyen(Note)

Correction from the dividend forecast recently announced:

3. Consolidated performance forecast of 2021 Mar.

yen

7.00

7.00

5.00
～30.005.00～30.00－－

FY2021 Mar. (forecast)

Total
yen

None

(from Apr 1, 2020 to Mar. 31, 2021)(% indication: change compared with the same quarter of the previous year)
Sales amountmil. yen

Operating profit%

mil. yen

Ordinary profit%

Full business year
6,937
9.5
850
5.5
(Note) Correction from the performance forecast recently announced:

1

mil. yen713
None

Current net profit
Current net profit
belonging to the parent
per sharecompany’s shareholders%
mil. yen
%
yen

6.0

499

13.6

109.54

※ Notes(1) Material transfer of subsidiary in the current quarter consolidated cumulative period: None
(Specified subsidiary transfer with change of the consolidated scope)
New－(company name)

Excluded－(company name)(2) Application of accounting process specific to preparation of the quarterly consolidated accounting:None(3) Change of accounting policy, change of accounting estimate, redisplay of revision① Change of accounting policy for revision of accounting standard, etc.
： None② Change of the accounting standard except for ①： None③ Change of the accounting estimate： None④ Redisplay of revision： None(4) Number of shares issued (ordinary shares)① Number of term-end shares issued(including own shares)② Number of term-end own shares③ Average number of midterm shares(quarterly accumulation)**

FY2021 Mar. 3Q

5,650,800shares

FY2020 Mar.

5,062,000shares

FY2021 Mar. 3Q

61,454shares

FY2020 Mar.

61,454shares

FY2021 Mar. 3Q

5,352,922shares

FY2020 Mar.3Q

4,222,055shares

The quarterly summary of accounting statement is not subject to quarterly review by the certified accountant oraudit company.
Explanation on appropriate use of the performance forecast and other special notes
Description concerning the future of performance forecast, etc. described in this document is based on the information currently
obtained by us and the certain precondition judged as reasonable, and the actual performance, etc. may drastically vary due tovarious factors.

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1. Qualitative information concerning the current quarterly financial statement(1) Explanation of management result of the current term

The Japanese economics in the current third quarter consolidated accumulative period continues to shift with uncertain
situation due to the effect of Covid-19 epidemic and the impacts on the global economics given by trend of the issues between
US and China and future of Chinese economics, and uncertainty in the policies. In particular, while we are exploring brand new
corporate activities because visiting to the clients and business negotiation, etc. are strictly restricted due to pandemic of Covid19, our group has engaged in both prevention of infection spread and sales activities by shifting to working from home andholding video conferences by restriction on non-essential outings and measures including temperature check and mask wearing,etc.
Under such economic circumstances, for the electronic and communication device business, in addition to sales expansion
business mainly in the 5G related market and public related market continuously from last year, we have been also dedicated to
new markets and client exploration to actively acquire orders from new fields. We have also worked on enhancement of proposalof our self-developed products by continuously promoting “effort for high added-value products,” “expansion and exploration ofbusiness field” and “co-development with the company of business tie-up.”
As a result, newly explored clients and inquiries are increasing from new markets besides the existing analog high frequency
products, including optics related products used for various business-use wireless, digital signal processor, etc. indispensable forhigh-speed signal processing, millimeter wave band products, etc. necessary for wireless transmission of data of large volumes.
Above all, we have firmly achieved success such as large order of semiconductor burn-in equipment, etc. and “manufacturingof the low-power high-frequency circuit for linear accelerator and beam monitor circuit system of the next-generation radiantlight facility.”In the mobile communication field, we have received more 5G related orders since the current third quarter consolidated
accounting period.
In addition, proposals for new clients related to mobile communication facilities for overseas are under stagnation due to theimpact of Coivd-19.
Demands for the optical transmission device, digital signal processor, etc. are increasing for disaster measures, business-use
wireless and surveillance system in the public filed, and therefore we will work on further demand expansion in the public filed
as well as positively working on self-developed products including product development for equipment of the 5G related market.
Order receipt condition in general electronic and communication device business is slightly decreasing compared to theprevious year due to cold storage or postponing of the projects related to some public transportations because of the impact of
prolongation of Covid-19. Under such circumstances, we will continue to promote expansion of our group’s business field inorder to establish the stable business base as well as proposing new sales method according to change of time such as renewal of
the website for further product proposal and sales expansion, and also continue the activities for profit expansion byimplementation and enhancement of self-development products.
For the electronic and communication device business, in addition to sales expansion activities mainly in the public related
market, we are focusing on exploration of new clients. Especially in the civil service field, the demands are stably increasing
and it is expected to shift steadily hereafter. We will continue to promote expansion of our group’s business fields and also
continue the activities for profit expansion by enhancement of proposal of self-developed products. We have promoted
development and sales of the solar power plants and small wind power plants in the renewable energy system sales business.
For development and sale of solar power plants, we conduct the entire flow of development of land, procurement, sale andmaintenance inhouse in order to secure profit while fixed price purchase is dropping and we will continue to reduce costs forconstruction and maintenance as well as promoting the development / sales to contribute to the business performance.
Development / sales of the small wind power plants are our future middle and long-term major business and we will continue
further promotion of them. We hold the power selling right of the fixed purchase price of 55 yen/kWh for 20 years in Hokkaido,
where the wind condition is good, and will obtain profit from increase of power selling income from our own plants and throughsales after the development. Eight units have been interconnected and some of them have been sold in Hokkaido before
November 2020. thirty units are also scheduled to be interconnected before March 2021, and we will continue to enhance thedevelopment and sell out some of them as necessary for profit expansion.
In the renewable power plant business, the already-operating solar power plants have been selling power at a good rate including
Nagasaki Prefecture, Goto-City, Kojindake Solar Power Plant. Small wind power plants are also promoting development, andsome units have been selling power since October 2020. We are planning for interconnection of thirty units by March 2021 andplanning to basically retain the interconnected plants and sell power. In addition to the full-scale wind condition survey started
since April 2020, we have started the boring survey since June for the large wind power plant (1.984MW) in Nemuro City,
Hokkaido. We are in process of interconnection in 2022 at a good rate.
Additionally, our group has promoted development in renewable energy and overall environmental business also in Southeast
Asia. Construction of the small waterpower plant under development in Flores Island, Nusa Tenggara, Indonesia has been started.
This project to sell power to the Indonesian government owned electric company and contribute to reduction of greenhouse gas(GHG) and reduction of GHG in Japan by obtaining JCM credit. Electricity penetration rate in Nusa Tenggara is 61.9%, which is
the lowest in Indonesia, and therefore, our project will also contribute to improvement of their electricity penetration rate.
Furthermore, in February 2021, the small waterpower plant development project in Maluku, Indonesia was similarly adopted for
the Joint Crediting Mechanism Funding Support Business, and we are planning for further development of the renewable energy
plants in the Southeast Asia.
Our group is positively considering development of the renewable energy and overall environmental businesses which will
become our next pillar overseas mainly in Southeast Asia in addition to Japan for expansion of operations of such businesses.

3

We will continuously endeavor not only to reduce CO2, but also to contribute to the community and domestic and internationalsocieties and to introduce, spread and promote renewable energy by taking advantage of characteristics of the community, andaccelerating development of community-based renewable energy.
As the result of the above, the amount of orders received in the current second quarter consolidated accumulative period was
2,935 mil. yen (9.8% decrease compared with the same term of the previous year), and the sales amount was 3,314 mil. yen(8.8% decrease compared with the same term of the previous year). In terms of profit and loss, operating profit was recorded as
147 mil. yen (62.4% decrease compared with the same term of the previous year), ordinary profit was recorded as 92 mil. yen(66.9% decrease compared with the same term of the previous year), and therefore the quarterly net profit belonging to the parent
company shareholders was 69 mil. yen (67.8％ decrease compared with the same term of the previous year).
Management result status by business type segments is as follows.
a. Electronic / communication device business
Thanks to steady demand in the mobile communication filed and civil service and public related field, the amount oforders received was 2,784 mil. yen (12.9% decrease compared with the same term of the previous year), sales amount was
2,766 mil. yen (13.3% increase compared with the same term of the previous year), and segment profit was 347 mil. yen(56.5% increase compared with the same term of the previous year).
b. Renewable energy system sales business
Due to lot selling of small wind power plants and sales of the solar power plants, the amount of orders received was 150
mil. yen (155.3% increase compared with the same term of the previous year), sales amount was 266 mil. yen (173.6%
increase compared to the same term of the previous year), and segment loss was 64 mil. yen (segment loss of the same termof the previous year: 123 mil. yen).
c. Renewable energy plant business
The already-operating solar power plants in Noboribetsu City and the mega solar power plants in Goto City, Nagasaki
Pref. and the solar sharing plants in Shimada City, Shizuoka Pref. have been selling power at a good rate. However,
although we have been continuously adjusting sale of the megasolar plants which we hold, it couldn’t be achieved before
the current third quarter consolidated cumulative period, and since we achieved sales and profit by sellout of one megasolar
power plant during the second quarter consolidated accounting period and also due to the impact of income decrease fromsuch power selling, the sales amount was 301 mil. yen (72.5% decrease compared with the same term of the previous year)
and segment profit was 76 mil. yen (82.8% decrease compared with the same term of the previous year).

4

2.Consolidated financial statements and Notes(1)Consolidated balance sheet(In thousand yen)
FY 2020 (consolidated)(As of March 31,2020)
AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments - trade
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

3Q FY 2021 (consolidated)(As of December 31,2020)

2,215,666
1,391,469
2,889,509
778,562
231,870
105,709
166,749

2,146,685
1,281,320
3,209,605
845,059
268,543
50,681
228,601△17,632△17,632

7,761,905

8,012,864

514,488515,284△346,363△356,789

Buildings and structures, net

168,125

158,494

Machinery, equipment and vehicles
Accumulated depreciation

368,769

371,897△135,540△156,828

233,229

215,069

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

824,843876,147△687,178△718,753

137,665

157,393Land
Construction in progress

272,573―272,5730Total property, plant and equipment

811,592

803,531

39,03951,8090

38,48849,786090,84888,275Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts

51,16455,725
181,357
458,529

148,296
109,572
175,539
510,196△8,700△8,700Total investments and other assets

738,077

934,904

1,640,518

1,826,710

2,935
71
17,74953,87849
13,559Intangible assets
Goodwill
Software
Other
Total intangible assets

Total non-current assets
Deferred assets
Share issuance cost
Development expenses
Business commencement expenses
Total deferred assets
Total assets

5

20,75567,487

9,423,180

9,907,062

(In thousand yen)
FY 2020 (consolidated)(As of March 31,2020)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable - other
Income taxes payable
Advances received
Provision for bonuses
Provision for product warranties
Other

3Q FY 2021 (consolidated)(As of December 31,2020)

400,496
74,980315,775
172,964
176,095
96,648322,665
119,402
22,878259,627

654,974
52,510350,110147,272
154,545
21,484
19,36956,39423,378135,432

Total current liabilities

1,961,534

1,615,471

Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Asset retirement obligations
Other

368,9112,289,987
331
207,11215,155423,289

570,648
2,190,731

Total non-current liabilities

3,304,788

3,405,672

5,266,322

5,021,144

1,961,823
1,235,035
1,034,475

2,306,213
1,544,421
1,104,076△61,313△61,313

4,170,020

4,893,398
4,503

Foreign currency translation adjustment△3,962△11,724△24,565

Accumulated other comprehensive income△15,687△20,062

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity―
229,102
15,155400,033

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Share acquisition rights
Total net assets
Total liabilities and net assets

6

2,524

12,582

4,156,857

4,885,917

9,423,180

9,907,062

(2) Quarterly consolidated statements of income and Quarterly consolidated statements of comprehensive income
Quarterly
Consolidated statements of income
Consolidated third quarter period

Net Sales
Cost of sales

3Q FY2020(from April 1, 2019 to
December 31, 2019)
3,633,701
2,351,975(In thousand yen)
3Q FY2021(from April 1, 2020 to
December 31, 2020)
3,314,399
2,297,530

Gross profit

1,281,725

1,016,869

Selling, general and administrative expenses

889,842869,595

Operating profit

391,883

147,274

3,212
324

359
589

14,287

－

8,778
－
4,231

44,481
12,104
6,480

30,83464,015

134,201
2,106

99,906
1,292

907

3,230

Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodInsurance income
Gains on debt forgiveness
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
method
Other

7,218

14,857

144,433

119,286

Ordinary Profit

278,283

92,003Extraordinary income
Gain on valuation of investment securities

14,754

5,716

14,754

5,716

153

11
369

Total non-operating expenses

Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of investments in securities

－
153

381

Profit before income taxes

Total extraordinary losses

292,885

97,338

Income taxes - current
Income taxes - deferred

105,750△28,952

25,986
1,750

Total income taxes

76,79827,737

Profit216,087

69,600

Profit attributable to owners of parent

216,087

69,6007

Quarterly consolidated statements of comprehensive income
Consolidated third quarter period

Net Profit for the Quarter
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

3Q FY2020(from April 1, 2019 to
December 31, 2019)
216,087

Total other comprehensive income(In thousand yen)
3Q FY2021(from April 1, 2020 to
December 31, 2020)
69,600

4,413

8,466

△4,734△12,841△320△4,375Comprehensive income

215,766

65,225（breakdown）
Comprehensive income attributable to owners of parent

215,766

65,2258

(3) Notes for the quarterly consolidated financial statements(Segment information, etc.)【Segment information】
I. Previous 3Q consolidated cumulative period (from April 1, 2019 to December 31, 2019)
Information concerning the sales amount and the amount of profit or loss per report segment(unit: thousand yen)Amountrecorded inquarterly
Adjusted
consolidated
amountprofit and loss
(Note) 1
statement(Note) 2

Report segment
Electronic /Renewablecommunication energy system
device business sales business

Renewableenergygeneration
business

Total

Sales amount
Sales amount to externalclients
Internal sales amount ortransfer amount between
segments

2,441,719

97,291

1,094,690

3,633,701-

3,633,701

－

－

－

－

－

－

Total

2,441,719

97,291

1,094,690

3,633,701－

3,633,701

Segment profit or loss (△)

221,881△123,374

445,987

544,493△152,610

391,883(Note)
1. Adjusted amount of segment profit or loss (△) △152,610 thousand yen is adjusted amount of unrealized profit 3,213 thousand
yen, adjusted amount of dividends from the consolidated subsidiary △ 52,500 thousand yen, and profit and loss of groupmanagement division not distributed to business segment △103,323 thousand yen.
2. Segment profit or loss (△) matches operating loss (△) in the quarterly consolidated profit and loss statement.
II. Current 3Q consolidated cumulative period (from April 1, 2020 to December 31, 2020)
Information concerning the sales amount and the amount of profit or loss per report segment
Report segment
Electronic /Renewablecommunication energy system
device business sales business

Renewableenergygeneration
business

Total(unit: thousand yen)Amountrecorded inquarterly
Adjusted
consolidated
amountprofit and loss
(Note) 1
statement(Note) 2

Sales amount
Sales amount to externalclients
Internal sales amount ortransfer amount between
segments

2,766,003

253,545294,850

3,314,399－

3,314,399－

12,6126,450

19,062△19,062－

Total

2,766,003

266,158

301,300

3,333,462△19,0623,314,399

Segment profit or loss (△)

347,351△64,235

76,832359,947△212,673

147,274(Note)
1. Adjusted amount of segment profit or loss (△) △212,673 thousand yen is adjusted amount of dividends from the consolidated

subsidiary △72,500 thousand yen elimination of intersegment transactions of △6,652 thousand yen, and profit and loss of groupmanagement division not distributed to business segment △133,520 thousand yen.

2. Segment profit or loss (△) matches operating profit in the quarterly consolidated profit and loss statement.

9