FY2024 March The 3Q Summary of Accounting Statements[Japanese Standards] (consolidated)
February 14, 2023
Tokyo
Code No.
6838
URL
https://www.tmex.co.jp
Representative(Title) President(Name) Toru Masuzawa
Contact person(Title) Director(Name) Keita Masuyama (TEL) 03-6435-6933
Quarterly report to be submitted：
November 10, 2023
Dividends payment to be started：－
Preparation of supplementary explanation document for the quarterly accounting statement：No
Explanatory meeting for the quarterly accounting statement：No
Listed company nameTamagawa Holdings Co., Ltd.

Exchange(amount under. mil yen rounded off)

1.Consolidated performance of FY 2023 Mar.: 3Q (from April 1, 2023 to December 31, 2023)(1) Consolidated management result (cumulative)(% indication: change compared with the same quarter of the previous year)
Quarterly profit
Operating profit
Ordinary profit
belonging to the parent
company’s shareholders

Sales amountmil.yen%mil.yen%FY2024 Mar. 3Q
2,413
26.5
△254
FY2023 Mar. 3Q
1,908 △54.0△477(Note) Comprehensive profit: FY2024Mar. 3Q△361mil.yen (Quarterly net profit per
share

Quarterly net profit per
share after issuable
share adjustment

mil.yenmil.yen△63.52△77.19－－FY2024 Mar. 3Q
FY2023 Mar. 3Q

mil.yen%mil.yen

－
△276
－
－
△484
－
－％) FY2023 Mar. 3Q

%

△394
－
△460
－
△463mil.yen ((2) Consolidated financial status
Gross asset

Net asset

mil.yen
9,687
8,636
FY2024 Mar. 3Q
4,797mil.yen

FY2024 Mar. 3Q
FY2023 Mar.
(Referen Own capital:ce)

Own capital ratio

mil.yen
4,810
5,002
FY2024 Mar.

％

49.5
57.8
4,988mil.yen

２．Status of dividends
Annual dividends
End 1QEnd 2QEnd 3Q

Term end

Total

yen

yen

yen

yen

yen

－
－

0.00
0.00

－
－

5.00

5.00

5.00
～15.00None (Note)

5.00～15.00

FY2023 Mar.
FY2024 Mar.
FY2024 Mar. (forecast)(Note Correction from the dividend forecast recently announced:)

3. Consolidated performance forecast of FY 2024 Mar. (from July 1, 2023 to December. 31, 2024)(% indication: change compared with the same quarter of the previous year)
Sales amountmil. yen

Operating profit%

mil. yen

Ordinary profit%

Full business year
6,035 83.2
66－
(Note) Correction from the performance forecast recently announced:

mil. yen

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

7
－
None

yen

4

－

0.85

－％)

(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:(3) Change of accounting policy, change of accounting estimate, redisplay of revision① Change of accounting policy for revision of accounting standard, etc.

None：

② Change of the accounting standard except for ①

None：③ Change of the accounting estimate

None：④ Redisplay of revision

None
：

None

(Note)For details, see attached document P8. Quarterly Consolidated Financial Statements and Main

Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)”.
(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)**

FY2024 Mar. 3Q
FY2024 Mar. 3Q
FY2024 Mar. 3Q

6,364,600shares
61,508shares
6,203,182shares

FY2023 Mar.
FY2023 Mar.
FY2023 Mar.

6,073,900Shares
61,508Shares
5,960,917shares

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1. Qualitative information concerning the current quarterly financial statement(1) Explanation on the management result
During the third quarter in the consolidated cumulative period, the Japanese economy showed a gradual recovery inthe domestic economy after the new coronavirus infection was classified as a Type 5 Specified Infectious Disease, andthe restaurant, leisure, accommodation, and department store industries showed signs of recovery.

Furthermore, from

June onwards, increases in wages and other items promoted consumption behavior, accelerating the normalization of
economic activity.
prices soar.

On the other hand, the economic outlook remains uncertain as the yen continues to weaken and

The economy is gradually recovering as the employment and income environment continues to improve.

However, in addition to the prolonged general price rise, there are geopolitical risks such as Russia's prolonged invasionof Ukraine and the increasingly tense situation in the Middle East, as well as interregional risks such as the stagnationof the Chinese economy and moves toward monetary tightening in Western countries.

There are such regional

disparities in recovery and a sense of uncertainty is observed about the future of the economy.
Under such economic circumstances, for the electronic and communication device business, in addition to sales
expansion business mainly in the 5G related market and civil services/public related market, we have been also
dedicated to new markets and client exploration to acquire orders from new fields.
We have also worked on enhancement of proposal of our self-developed products by continuously promoting “effort
for high added-value products,” “expansion and exploration of business field” and “co-development with the company ofbusiness tie-up.”
As a result, newly explored clients and inquiries are increasing from new markets besides the existing analog highfrequency products, including optics related products used for various business-use wireless, digital signal processor,
etc. indispensable for high-speed signal processing, millimeter wave band, terahertz products, etc. necessary for
wireless transmission of data of large volumes.

We are also proactively working on the semiconductor manufacturing

facility market, etc.
In the mobile communication field, since the communication common carriers’ infrastructure investment wascontrolled, the demand for the existing products is decreasing. In the government and public sector markets, we havecome out of a slow period for projects, and this fiscal year is a period of preparation for new projects.

Due to the large

increase in the national budget, our company has been receiving orders for large-scale projects one after another since
the latter half of last year. Furthermore, we have a high probability of receiving inquiries at this time, so development
and design will be our main focus this year.

Although the contribution to high performance is limited in this fiscal year,

these are large-scale and repeat projects, and we expect them to make a stable and continuous contribution to businessresults in the following fiscal year and beyond.
Besides, we have won new businesses of drone monitoring device and private satellite project, etc.
Finally in the FA and measurement field, we received an order from a new client at the beginning of the term for thesemiconductor reliability test equipment.

Since the semiconductor industry will be our country’s policy and investment

to advanced process will be more and more expanded hereafter, we will work on sales expansion to the semiconductor
facility market with our high frequency technology which is essential to semiconductors for communication.
By enhancing proposals of self-developed products along with active promotion of the business domain expansion,
we will continue the activities for profit expansion in order to establish the stable business base as the entire electronics
and communication device industry.
In the renewable energy business, we have continuously worked on acceleration of development of small wind power
plants. In the current period, since there has been a global delay of procurement of the equipment in a number ofindustries, we increased the number of units for development by taking the measures such as advance procurement of
the equipment, etc. In addition, as a result of diversification of fund procurement, 29 units of small wind power plants
were newly interconnected in this first quarterly consolidated accumulative period by executing multiple project finances
including sustainable loan, etc. We also sold 4 units of small wind power plants.
We are also aiming to establish a new profit base by accelerating the approach to increase the number of thedeveloped units as well as promoting increase of the possessed units to secure stable profit by power selling. On theother hand, since inquiries are increasing for purchase of the small power wind plants by social demand for spreading

of renewable energy, we will consider sellout depending on the market environment.
In order for the stakeholders surrounding us to secure the precise profit structure and growth, we are aiming to build
the unique business model in the renewable energy business as a domestic company focusing on owning small wind
power plants from this period and expecting to launch various mechanism and structure reformations including theorganizations of the same business. Simultaneously, we will contribute to continuous reduction of greenhouse gas byeasing the business risk and accelerating development of new renewable energy sources with development of small
wind power plants of which unit is small size and risk dispersion and securement of profitability and mobility.
Tokyo Stock Exchange opened the carbon credit market on October 11, 2022 in view of contribution to carbon pricing
as a stock exchange in Japan with the result of verification experiment in 2022 to achieve the decarbonated society.
We will focus on it since establishment of a new “emission right trading” market is considered to contribute to further
expansion of renewable energy market.
As the result of the above, the amount of orders received in this second quarterly consolidated accumulative period
was 2,413 mil. yen（26.5％increase compared with the same period of the previous year) and the sales amount was
254 mil. yen（477 mil. yen increase compared with the same period of the previous year). In terms of profit and loss,
operating loss was recorded as 276 mil. yen（the operating loss of the same period of the previous year: 484 mil. yen）
The quarterly net loss attributable to owners of the parent company was 394 mil yen (compared to the quarterly net loss
attributable to owners of the parent company of 460 mil yen in the same period of the previous year) due to a 90 mil
yen loss on valuation of investment securities.
In the electronic / communication device business, we will focus on acquirement of new businesses by setting oursales expansion activities of the mobile communication field (infrastructure sharing) public agency / public related
market which is expected to continue to transit steadily and where the demand is stably increasing as the center.
Furthermore, we will also proactively expand the business domain as well as continuing the activities for profit
expansion in order to establish the stable business base as the entire electronic and communication device businessby enhancement of proposals for self-developed products.
Our group is proactively considering development of the general environmental business in addition to the renewableenergy business not only as domestic expansion but also overseas expansion mainly in Southeast Asia, and will
actively conduct investment activities for expansion of the business operation. Our group will further work on CO2
reduction and the measures for global warming with all the Group employees and will proactively disclose information
to the stakeholders surrounding us for ESG management and will take a positive challenge to achieve SDGs goals.
Operating results by segment are as follows.
a. Electronic and communication equipment businessIn the electronic and communication equipment business, orders received were 2,640 million yen (down 18.9%
from the same period last year) due to delays in contract timing for government offices and public-related
businesses.
Although sales are slightly behind the initial plan, sales are progressing as planned and amounted to 1,980
million yen (16.1% increase compared to the same period last year).

Segment profit was 72 million yen(segment loss was 70 million yen in the same period last year).
In addition, the order backlog is 3,877 million yen (23.3% increase compared to the same period last year),and the reason for the increase is that contracted delivery times with customers are becoming longer due tolonger delivery times for semiconductors and non-ferrous metal materials worldwide.

Similarly, inventories(parts/materials, work in process, and product inventory) increased by 32.1% compared to the same period lastyear due to the impact of longer contracted delivery dates.
b. Renewable energy businessIn the renewable energy business, we have been working on the development of small wind power plants by
utilizing development funds for small wind power plants, co-financing from banks, and funds from sustainableloans.

In addition, the small wind power plants and low-voltage solar power plants that we own in Hokkaido

and Tohoku are selling electricity steadily.
During the third quarter of the current consolidated cumulative period, 29 new small wind power plants wereinterconnected.

Additionally, sales increased compared to the same period last year as we were able to sellfour small wind power plants. Furthermore, segment profit is also increasing due to steady sales of electricity
from our small wind power plants and low voltage solar power plants.
As a result of the above, orders received were 858 million yen (324.2% increase compared to the same
period last year), sales were 433 million yen (114.3% increase compared to the same period last year), andsegment loss was 14 million yen (segment loss was 78 million yen).

2.Consolidated financial statements and Notes(1)Consolidated balance sheet(In thousand yen)
FY 2023 (consolidated)(As of March 31,2023)

3Q FY 2024 (consolidated)(As of December 31,2023)

AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable - trade

1,055,068
1,371,660

1,228,030
1,302,853

Merchandise and finished goods
Goods and products

2,208,403
999,891

3,181,446
1,252,212

Work in proces
Raw materials and supplies

843,908
83,993912,862
45,380

Advance payments - trade
Other353,946△28,607

212,573△29,288

Allowance for doubtful accounts

6,888,266

8,106,071

Non-current assets
Property, plant and equipment
Buildings and structures

553,616

558,674

Accumulated depreciation△399,192△416,112

Buildings and structures, net

154,423

142,561

Machinery, equipment and vehicles

418,077

394,147

Accumulated depreciation△207,331△189,739

210,745

204,407

1,088,975

1,117,938△863,189△934,399

225,785

183,538

298,130

298,130

Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment

013,322

889,085

841,961

Intangible assets
Goodwill

5,539

5,333

SoftwareOther

51,519040,9670

Total intangible assets

57,05946,300Investments and other assets
Investment securities

356,541

264,845

Long-term loans receivable
Deferred tax assets

50,000109,069

50,00092,665

Other283,615

279,116

Allowance for doubtful accounts

799,226

686,627

1,745,371

1,574,889

Deferred assets
Stock issuance cost

1,984

5,779

opening expenses
Founding expenses

671
－

739
278

Total deferred assets

2,656

6,797

8,636,293

9,687,758

Total non-current assets

Total assets

(In thousand yen)
FY 2023 (consolidated)(As of March 31,2023)

3Q FY 2024 (consolidated)(As of December 31,2023)

Liabilities
Current liabilities
Notes and accounts payable - tradeshort-term borrowing

591,995
270,332

513,751
443,338

Short-term loans payable
Current portion of long-term loans payable

100,000
279,298

100,000
377,625

Lease obligations
Accounts payable - other

4,822
90,575

4,880
153,158

Income taxes payable
Advances received

21,27567,51023,39264,256

Provision for bonuses
Provision for product warranties

23,00947,981

14,262
24,072

Other
Total current liabilities

48,38672,25749,16170,9681,617,444

1,838,867

1,566,520
8,810

2,581,864
5,203

Retirement benefit liability
Asset retirement obligations

277,579
13,127

280,619
13,127

Other

150,664

157,248

2,016,703

3,038,062

3,634,147

4,876,930

Capital stock
Capital surplus

2,535,100
1,692,213

2,635,889
1,762,940

Retained earnings
Treasury shares

790,618△61,394

396,581△61,394

Total shareholders' equity

4,956,537

4,734,016

Accounts payable - otherNon-current liabilities
Long-term loans payable
Lease obligations

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities△45,035△43,238

Foreign currency translation adjustment

77,159107,040

Accumulated other comprehensive income

32,12463,801

11,767

10,069

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

1,716

2,939

5,002,146

4,810,827

8,636,293

9,687,758

(2) Quarterly consolidated statements of income and Quarterly consolidated statements of comprehensive income
Quarterly
Consolidated statements of income
Consolidates third quarter period(In thousand yen)
FY 2023 (consolidated)(As of March 31,2023)

3Q FY 2024 (consolidated)(As of December 31,2023)

Net Sales
Cost of sales

1,908,466
1,375,362

2,413,779
1,708,918

Gross profit

533,103704,860

Selling, general and administrative expenses

1,010,216

959,093

Operating profit (loss (△))

△477,112△254,232

4,308

1,917

Insurance income

347
4,440

246
5,907

Gain on forgiveness of debts
Other

38,252
8,028－
12,632

Total non-operating income

55,37820,704Non-operating income
Interest income
Dividend income

Non-operating expenses
Interest expenses

18,06527,172Equity in losses of affiliates
Amortization of stock issuance expenses

－
3,080

1,732
－

Non-operating payment fee
Share of loss of entities accounted for using equity
methodOther

15,6152,090

18,900－Total non-operating expenses

5,811
1,652

9,055
2,430

Interest expenses

63,12542,480△484,859△276,009

Gain on sale of fixed assets
Total extraordinary profit

45,000－2,599
90Gain on sale of fixed assets

45,0002,690

Ordinary profit (loss (△))
special profit

Extraordinary loss
Loss on disposal of fixed assets
office relocation costs
Total extraordinary loss
Loss on disposal of fixed assets

0

1,827

－
8,193

90,107－

8,193

91,934△448,052△365,253

Income taxes - current

8,184

11,429

Income taxes - deferred

3,381

16,130

Profit (loss (△)) before income taxes

Total income taxes
Profit (loss (△))
Quarterly net income attributable to non-controllinginterests
Profit (loss (△)) attributable to non-controlling interests

11,566

27,560△459,618△392,813

555

1,223

△460,174△394,036

Quarterly consolidated statements of comprehensive income
Consolidated third quarter period(In thousand yen)
FY 2023 (consolidated)(As of March 31,2023)
Profit (loss (△))
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income

3Q FY 2024 (consolidated)(As of December 31,2023)△459,618△392,813△43,687
39,726

1,796
29,880△3,96031,677

Comprehensive income△463,579△361,136（breakdown）
Comprehensive income attributable to owners of parent
Quarterly comprehensive income attributable to noncontrolling interests△464,135△362,359

555

1,223

(3) Notes for the quarterly consolidated financial statements(Notes for precondition of continuing company): NA
Ⅰ. Current 3Q consolidated cumulative period (from April 1, 2023 to December 31, 2023)
Information concerning the sales amount and the amount of profit or loss per report segment(unit: thousand yen)Amount recordedin quarterly
Adjusted amount consolidated(Note) 1
profit and loss
statement (Note)2

Report segment
Electronic /communication
device business

Renewableenergy business

Sales amount
Mobile communications
infrastructure
Government office

601,124－

601,124－

601,124

345,829－

345,829－

345,829

Public project

426,698－

426,698－

426,698

FA・Measurement・Other

Total

332,540－

332,540－

332,540

Solar power plant－

145,710

145,710－

145,710Wind power plant
Revenue from Contracts with
Customers
Other profit－

48,30648,306－48,306

1,706,192

194,016

1,900,209－

1,900,209

－

8,256

8,256

－

8,256

Sales amount to external clients
Between segments
Internal sales or transfer amountTotal

1,706,192

202,273

1,908,466－

1,908,466

－

－

－

－

－

1,706,192

202,273

1,908,466－

1,908,466

Segment profit△70,023△78,742△148,765△328,346△477,112(Note)(1) Adjustment amount of segment loss (△) △328,346 thousand yen is the fee △328,346 thousand yen of the groupmanagement department which is not distributed to the business segment.
2. Segment loss (△) matches the operating loss in the quarterly consolidated profit and loss statement.
Ⅱ

Current 3Q consolidated cumulative period (from April 1, 2023 to December 31, 2023)

Information concerning the sales amount and the amount of profit or loss per report segment(unit: thousand yen)Amount recordedin quarterly
Adjusted amount consolidated(Note) 1
profit and loss
statement (Note)2

Report segment
Electronic /communication
device business

Renewableenergy business

Sales amount
Mobilecommunications
infrastructure
Government office781,119－

781,119－

781,119436,369－

436,369－

436,369

Public project452,420－452,420－452,420

FA・Measurement・Other

310,300－

310,300－

310,300－

157,627

157,627－

157,627－

267,706

267,706－

267,706

1,980,210

425,334

2,405,544－

2,405,544

－

8,234

8,234

－

8,234

1,980,210

433,568

2,413,779－

2,413,779

－

－

－

－

－

1,980,210

433,568

2,413,779－

2,413,779

72,830△14,691

58,138△312,371△254,232

Solar power plant
Wind power plant
Revenue from Contracts
Customers
Other profit

withSales amount to external clients
Between segments
Internal sales or transfer amount
Total
Segment profit

Total

(Note)1. The adjustment amount of △312,371 thousand yen for segment profit or loss (△) is △312,371 thousand yen in
expenses for the group management department that are not allocated to business segments.
2. Segment profit or loss (△) matches the operating loss in the quarterly consolidated statement of income.
(Profit recognition related)
Information which dissolves the profit arising from the agreement with the clients is as described in “Note (segment
information, etc.).”