http://www.tmex.co.jp

1

Corporate Presentation

Fiscal Year Ended March 31, 2013

Code:6838

I. Business Model (Corporate Profile)１

Name Company

A Company with Both History anda Desire to Take on Challenges

Certified February 2004
【Tamagawa Electronics Co., Ltd. 】

Accrediting Organization【contractual partner: GPPV】

Business Policy

Corporate Profile As of March 31, 2013

Established
Capital
Number of shares issued
Representative directors
Principal shareholders
Business lines

Ｎｅｗ

Domestic locations

Consolidated subsidiaries
Number of employees
Main clients

We at Tamagawa Holdings are committed toward striving to be a next-generation
infrastructure solutions provider. This is an objective we are attempting to achieve
by generating greater synergy among all of our subsidiaries in order to maximize theapplication of our No. 1 domestic share in high frequency wireless technology andprovide a supply system for renewal energy that separates us

November 4, 1968 (Fiscal year ends in March)
1,386,980,000 yen
10,753,000 shares (treasury stock 203,493 shares)
Setsuya Fukunaga, President and Representative Director (to be appointed February 2012)
Toru Masuzawa, Representative Director and CEO (to be appointed February 2012)
Marilyn Tang 16.5% CBSG - Bank Julius Baer & Co. Ltd.(Singapore) 13.4% Osaka Securities Finance Company, Ltd. 5.4%
Kosuke Shimanuki 5.3% SIX SIS LTD 5.0% EFG Bank (Hong Kong) 4.6% Nomura Securities Co., Ltd. 4.0%
■Electronics and telecommunications equipment business①Device business （the development and supply of high frequency devices supported by high frequency wireless technology）②Systems business（the development and supply of radio communication and broadcasting equipment and high-frequency
application system equipment)■Solar power energy business①Solar energy power system sales business (solar power modules and systems sales direct and through agents)②Solar energy power plant business (ownership, management, and operation of our own solar energy power plants)■ 【Head Office & Factory】
Factory】 3-1111-23 KamitsuchidataKamitsuchidata-naka,
naka, AyaseAyase-shi,
shi, Kanagawa, Japan■ 【Tokyo Office】
Office】 1-6-15 Hamamatsu-cho, Minato-ku, Tokyo Japan【Fukuoka【Fukuoka Office】
Office】 6-9-30 Nishijin, Sawara-ku, Fukuoka-shi, Fukuoka-ken, Japan■ Tamagawa Electronics Co., Ltd. ■ Tamagawa Solar Systems Co., Ltd. ■ GP Energy Co., Ltd. 【each is a 100% owned subsidiary】
127 employees 【Four at the head office;117 in the electronics and telecommunications equipment division;
six in the solar power energy division.】
Fujitsu Limited, NEC Corporation, Panasonic Corporation, Toshiba Corporation, Mitsubishi Electric Corporation,
Japan Radio Co., Ltd., government (and municipal) agencies, various research institutions

Ⅰ．Business Model 【Stages in the Growth of the Business ①】

High
High
Frequency radio
Frequency radio【Expertise】【Expertise】
Since 1968

Change in the
Failed businessChange inteam
theFailedbusiness management
investments
teammanagement【Systemof twobyinvestments
the former【Systemoftwoby theteam
former
sales
heads
at
top】
sales teamheads at top】
Since1997

Selection
Selection
andfocus
and focus【Focusingon【Focusing on
profitability】
profitability 】

２

Corporate value
Corporate value【Growth model 】【Growth model 】
Maintaining strong corporate DNA that is
focused on development competency andhigh quality control

Since 2012

■Patents acquired over the past decade

Deficit management

Management under a system of high profit

Failed business investments
Failed business investments

R&D activities
2011 Semi-coaxial resonators and filter devices
2009 Power semiconductor test equipment
Variable phase shifters
Processing equipment of high-frequency signals
2008
Resonance damping devices and resonance apparatus
TM dual mode dielectric resonator apparatus
Dielectric resonators and filter devices
Fuse elements and high-frequency devices
2005
Methods of production of thick film circuit board
Triple-mode bandpass filters
Dielectric resonator bandpass filters
Waveguide lines and waveguide converters
2003
Multi-mode semi-coaxial resonator
Half coaxial resonator

Withdrawal from theWithdrawal
from thebiomass
businessbiomass businessLessons learned from investment failures

The top company in highThe
top company
in highfrequency
wireless
technology
frequency wireless technology

StartedSpecializing in high frequency
wireless technology since theinception of the company

Efforts channeled into the “nextnext-generation
Efforts
channeled into
the “next-generation
environmental
infrastructurebusiness”
business”
environmental infrastructure business”
Smartphones
Smartphones

Details of business and investments

Withdrawa

Joint venture with Takegawa Electronics Co., Ltd.(compound1997 semiconductor assembly and test operations)2000
Acquisition of AppLight Technologies Pte Ltd.(Singapore)2007 (HD production devices based on microfabrication technology by laser) 20092009 Establishment of TME Korea Co., Ltd.
Debt consolidation of limited liability partnership2009(¥2.05 million investment)2010 Establishment of BioEnergy Resources Co., Ltd.

2010

2012

Coastal monitoring
Coastal monitoring
Business activities under new management
Solar system sales
Solar system sales
StartedBusiness activity topics
Subsidiary: Management overhaul of Tamagawa Electronics Co., Ltd.

Ｎｅｗ

Operation of solar
Operationsolar
power ofplantspower plants

FY12 →■Profitability established for electronic andtelecommunications equipment business■Launch solar power energy business
FY13 →July 2012: Contracts made for sales of solar power modules→September 2012: Land secured for large-scale solar power plant

Ⅰ．Business Model 【Stages in the Growth of the Business ②】

３■Topics about our greatest successes during the FY ended March 20132013

ＴＡＭＡＧＡＷＡ ＨＤ News Releases

Changes in sales (left axis) and operating income (right axis)

February 2012
●Position of president assumed by Setsuya Fukunaga【Goal】■Announce new entry into the solar energy business↓●Exclusive distribution agreement reached with GPPV
【Goal】The start of the solar energy systems sales businessthat sets the company apart from the competition in terms ofour track record overseas, price competitiveness, and highquality. ※ GPPV is a manufacturer of solar power modules and cells

FY ending March 2014
(Forecast)【Million yen】

【 Million yen】
Sales [22.7% growth]¥3,671 million ⇒¥4,504 million

493
5,000
5,000

500
500
Operating income [32.2% growth]¥373 million ⇒ ¥493 million

368

400
400
June 2012

4,000
4,000
●Position of CEO assumed by Toru Masuzawa【Goal】 Speed up business
operations through a management model with two heads

FY ended March 2013

300
300
4,504

Profitability reachedthrough management
revolution

200
200

July 2012
3,671

3,000
3,000
■Solar power energy business●The start of in-house operations business of solar power plants【Goal】Establish a stock business that is highly profitable
and stable over the long term

100
100

3,106
2,803
2,639

00

※20-year fixed price sales through a power buyback program

2,000
2,000

Green Rush Project

▲29

-100
▲１00
January 2013
●Allocation of new shares to a third party and issuance of
warrants (fund procurement)
Type

Price of one
share of stock

Number of sharesissuedNumber of dilutive
shares issued

Amount of cashraised

-200
▲200
1,000
1,000
▲226
▲300
-300

（issue cost)▲286

Stock certificate¥130

2,136,000 shares¥277 million(¥11 million)

Warrants¥150

4,843,000 shares¥756 million(¥14 million)※As of February 28, 2013: The number of shares issued from the exercise
exercise of warrants
was 1,645,000 shares.

00

-400
▲400
ＦＹ2010/3
2010

2011
ＦＹ2011/3

ＦＹ2012/3
2012

ＦＹ2012/3
2013

ＦＹ2014/3
2014(Forecast)

Ⅱ．Management Indicators (Financial Reporting on the FY ended March 2013 – 1. Summary)■FY ended March 2013 comparedwith the year-earlier period

４

Sales
： 18.2% growth ¥3,671 million (same period a year earlier: ¥3,106 million)
Sales： 18.2% growth ¥3,671 million (same period a year earlier: ¥3,106 million)
Ordinary income ：¥373 million (same period a year earlier: -¥29 million)
Ordinary income ：¥373 million (same period a year earlier: -¥29 million)
Net income：¥339 million (same period a year earlier: -¥37 million)
Net income：¥339 million (same period a year earlier: -¥37 million)

Difference between actual results of FY ended March 2013 and initial forecast※Initial forecasts: Business performance forecast on 14 May 2012

①

②

③

③－②

③／①

ＦＹ2013/3

ＦＹ2013/3【Initial Forecast】【Actual results 】

Variance fromdisclosed forecast

Compared to thesame period last year

3,155

＋ 555

31.1％
31.1％

441

＋ 243

495.9％

74▲606▲89.1％
89.1％

3,671

＋1,616

18.2％
18.2％

1,048

＋ 334

77.8％
77.8％

ＦＹ2012/3【Actual results 】

2,406

2,500

74

198

680

680

Unit: Million yen (rounded down)■Electronics and telecommunications equipment※１■Solar power energy■Biomass energy

Forecastachievement rate※２

108.7％
Sales

3,106

3,378

Gross income on sales

589

714

SG&A expenses

619

645

Forecastachievement
scaling factor

675

＋ 30

9.0％

Operating income

▲29

69

5.4-fold increase 373＋ 304

Moved into theblack

Ordinary income

▲23

65

374

＋ 309

Net income

▲37

60

339

＋ 279

ＥＰＳ（円） ※３

ー5.6

9.2

47.1

＋37.9

１

２

Increased※１FY ended March 2012:■■9-month conversion of solar energy sales
shareholder value※2FY ended March 2013 ■6-month conversion of biomass energy sales※3 The average number of shares for FY ended March 2012 was 6,571,532 shares; and 7,202,647 shares for FY ended March 2013.

ＦＹ2013/3

Points on
variancefrom actual
results

１．【Sales 】 Expert groups of consolidated companies give high marks.
（１）■Electronic and telecommunication equipment business
・・・Main industry: Mobile communications sector achieves initial forecast sales.
（２）■Solar energy
・・・Solutions-based system of taking orders gives prospective companies a sense of assurance dueto the difference we provide from the rest of the pack. This earns high marks.
２．【Operating income 】“Selection and focus” of the profitability oriented management succeeds（１）■Electronic and telecommunication equipment business ・・・・・Loss-creating contracts are no longer accepted（２）■Biomass energy ・・Early decision to withdraw. Though there is high demand for PKS fuel, the management
and control systems of local subsidiaries are inadequate and make for chronic deficits.

Ⅱ．Management Indicators
５(Financial Reporting on the FY ended March 2013: 2. Profit and Loss Statement of Accounts)

ＦＹ2012/3
Unit: Million yen(rounded down)

ＦＹ2012/3

Share
（％）

ＦＹ2013/3

Management revolution

Business Portfolio
Reconstruction

Share
（％）

ＦＹ2013/3
High-profit management
Firming up the foundation

Breakdown of sales■Electronics and

77.5％

3,155

12.0%

85.9％

2,406
telecommunications equipment

21.9%
2.0%

■ Solar power energy

※１

74

441

0.6％

12.0％
0.6%

680

21.9％

3,106

100.0％■ Biomass energy
Sales

※２

74

2.0％

3,671

100.0％

77.3%
85.9%

Cost of sales

2,516

81.0％

2,622

71.4％

Gross operating profit

589

19.0％

1,048

28.6％

SG&A expenses

619

19.9％

675

18.4％

Operating income

▲29

▲1.0％

373

10.２％

13

0.4％

18

0.５％

Non-operating income

7

0.2％

17

0.５％

▲23

▲0.8％

374

10.2％

１

0.0％

Non-operating expenses
Ordinary income
Extraordinary gain-

Year-end base

ＦＹ2012/3

ＦＹ2013/3

Increases
anddecreases■Electronics and

2.6％

11.8％

+9.2％

■ Solar power energy

▲54.1

10.5％

■ Biomass energy▲6.9％▲40.1％

6

0.1％

0

0.0％

Net income before income taxes

▲30

▲0.9％

376

10.2％

6

0.2％

36

0.7％

▲37

▲1.2％

339

10.9％

Net income

Operating Margin for Each Sector

telecommunications equipment

Extraordinary loss

Corporate, inhabitant, andenterprise taxes■ Electronics and telecommunications equipment■ Solar power energy■ Biomass energy※１ ＦＹ2012/3■9-month conversion of solar energy sales (Operations started July 2011)※２ ＦＹ2013/3■6-month conversion of biomass energy sales (Operations were withdrawn
withdrawn September 2012)

Ⅱ．Management Indicators
６(Financial Reporting on the FY ended March 2013: 3. Balance Sheet and CF Statement

Units: Million yen, rounded down
Assets

ＦＹ2012/3

ＦＹ2013/3

Increases
anddecreases

Total current assets

1,293

2,114

821

Total non-current assets

150

592

442

Total assets

1,444

2,709

1,264

ＦＹ2012/3

ＦＹ2013/3

Increases
anddecreases

Total current liabilities

598

707

109

Total non-current liabilities

85

251

Total liabilities

683

958

Liabilities

ＦＹ2013/3

Cash and cash equivalents

55

389

333

Notes and accounts
receivable - trade

864

1,344

480

Property, plant,
and equipment

132

564

432

29

40

11

②LongLong-term loans
and corporate bonds

0

71

71

166
275

③Total （①＋②）

29

111

＋82

2.1%

4.1%

＋2.0％

ＦＹ2012/3

ＦＹ2013/3

ＦＹ2012/3

ＦＹ2013/3

765

1,716

951

▲4

1

5

32

32

(Unit: Million yen)
Valuation, translation
adjustments and others
Warrants
Total net assets

-

52.7%

Equity ratio

Increases
anddecreases

64.6%＋11.9％(Unit: Million yen)
Changes in Cash Flow (year-end base)

761

1,750

989

ＦＹ2011/3

ＦＹ2012/3

ＦＹ2013/3

Cash flows from operating activities

68

▲332

35

Cash flows from investing activities

93

77

▲454

Cash flows from financing activities

▲298

▲167

783

Cash and cash equivalents at endof period

482

55

389

Cash flow position

Increases
anddecreases①ShortShort-term loans

Increases
anddecreases

Shareholders' equity

ＦＹ2013/3

ＦＹ2012/3(Unit: Million yen)InterestInterest-bearing debt
dependency rate
Ｎet assets

Increases
anddecreases

ＦＹ2012/3(Unit: Million yen)

500
400
300
200
100
0
-100
-200
-300
-400
-500

Operating CF
Investing CF
Free CF

有価証券取得 ▲1,362百万円
投資有価証券取得 ▲2,020百万円

FY2011 /3
68
93
161

FY2012/3
-332
77
-255

FY2013/3
35
-454
-419

Ⅱ．Management Indicators
７(Business Performance Forecast for FY ending March 2014)

Changes ingrowth model
ＦＹ2013/3
High-profit management
Firming up the foundation

Sales Plan by Segment for FY Ending March 2014

ＦＹ2013/3

Unit: Million yen

Stock-type businessFirming up the foundation

Compared tothe same
period lastyear

ＦＹ2014/3(Forecast)

FY2014/3(Forecast)

Unit: Million yen

ＦＹ2013/3

ＦＹ2014/3(Forecast)Compared tothe same
period last
year

Sales

3,671

4,504

22.7％

Cost of sales

2,622

3,340

27.4％

Gross operating profit

1,048

1,163

17.9％

SG&A expenses

675

670

▲ 0.7％

Operating income

373

493

32.2％

Ordinary income

374

488

30.4％

Net income

339

449

32.3％

EPS (yen) ※

47.1

41.8

■Electronics and
3,155

2,800

▲ 11.3％■ Solar power energy

441

1,704

286.3％■ Biomass energy

74-

Sales total

3,671

telecommunications equipment

4,504

22.7％

Breakdown of sales
12.0%

37.8%

2.0%

■ Electronics andtelecommunications equipment■ Solar power energy■ Biomass energy

62.2%

85.9%

※The average number of shares for FY ended March 2013 was 7,202,647
7,202,647 shares.
The average number of shares for FY ending March 2014 (Forecast) was calculated as 10,753,000■Forecast for FY ending March 2014
Operating Income Plan by Segment for FY Ending March 2014
Points on the Business Plan
Unit: Million yen

ＦＹ2013/3

ＦＹ2014/3(Forecast)■Electronics and373（11.8％）

226（8.1％）■ Solar power energy(operating margin)46（10.5％）

266（15,6％）■ Biomass energy(operating margin)▲30（▲40,1％）

Operating income total(operating margin)373（10.2％）

telecommunications equipment(operating margin)493（11.0％）■Electronics and telecommunications equipment【1】Core market: Mobile communications new product development and solutions【2】Second pillar market: Strengthening of disaster-prevention development and sales【3】 Strengthening of our own product (environmental analysis equipment) solutions■Solar power energy【1】Continuation of work in small elite groups. Construction of a creation network forthe supply of recommended equipment.
【2】The start of sales of solar power plants (mega solar) from the second half of theyear.
【3】Aggressive assembly of solar power plants (mega solar).

Ⅲ．The State of Management Reforms
８(Electronic and Telecommunications Equipment Business: 1. Profit Structure Model)■Electronics andtelecommunications equipment business

Market and Frequency Domain

The No. 1 Expert Company in High Frequency Technology

300KHz

3MHz

30MHz

300MHzUltrashortwave

A characteristic of high-frequency radio is its suitability fordata transmission and movie transmission over high speeds
due to its use of broadband waves.

Medium wave
Aeronautical radio

Amateur radio

The front-end parts of radio communication equipment are
made up of analog high-frequency technology that is
unable to process digital technology. This is our company’s
field of specialty.

FM broadcasts
PublicDefense radio
Air traffic control

30GHz

300GHzMicrowave
Ultrashortwave

Short wave
Ship radio

3GHz

Mobile telephones
Ground wave
Digital television

Millimeterwave (EHF)
Next-generation
mobile telephones
Satellite
transmissions
ETC

Satellite
transmissions
Defense radarSpecific frequencies
ＦＹ2013/3

Device equipment
Sales ratio
Sales ratio
70%70%(High-frequency circuit
elements fortelecommunications use)

Business Portfolio

１
Next-generation
R&D activities

High frequency
wireless technology

２100%
direct sales
Technology
solutions

３
Diversified low-volume
production orders

In-house products makefor a high-profit structure

Tamagawa Electronics Co., Ltd.

Major electronics manufacturers, mobile
base station SI systems

Ascertaining
market trends

Distributors Directional couplers
Attenuators Terminators
Coaxial switchers
Oscillators
RF filters andduplexers, etc.

Sales Percentage by Market
23.0%

In-house production
Other

61.0%

Defense
16.0%

Mobilecommunications

30.0%
70.0%

Productivity
Productivity
Systems equipment(in-house products,
OEM products)

Fabless

Sales Percentage by ProductIn-house products

４High-frequency amplifiers
Synthesizers
Microwave transceivers
Optical receivers
Radar simulators ETC etc.

30.0%
70.0%

Custom products
Sales ratio
Sales ratio
30%
30%

Ⅲ．The State of Management Reforms
９(Electronic and Telecommunications Equipment Business: 2. Starting to Create New Markets)

Repeaters■Key Market: Field of Mobile Communications
Accommodating the new frequency assignments
Overhead AMP Shared Machines accompanying the increased demand for smartphones(Million yen)
Actual Sales Figures and Forecast by Quarter
1,000(Thousand units)

800

Smartphones(left axis)
600

Percentage ofsmartphones
among mobile
telephones

400

200

0

Remarks: Share calculation based on number shipped April-June 2011
Source: Market scales from Yano Research Institute Ltd. (July 2011), sharesfrom IDC (August 2011).

FY2012/3
FY2013/3
ＦＹ2014
ＦＹ 2014/2014 / 3 (Forecast)
Forecast)

1st Quarter
455
693
608

2nd Quarter
550
723
710

3rd Quarter
633
881
811

4th Quarter
766
857
670

■Plan for FY ending March 2014
Points on Business Activities■Electronics and telecommunications equipment business【１】Core market: Mobile communications
・Development and solutions for new products intended for the 4G (IMT Advanced) scheduled for launch in 2016【２】Strengthening of our own product (environmental analysis equipment) solutions
・Development and solutions for in-house products to meet the growing demand in the environmental analysis field that includes
work on pollen, yellow sand, PM2.5, and radioactive contamination

Ⅲ． The State of Management Reforms
１０(Solar Energy Business: 1. Construction of Profit Structure Model)“Providing high-performance, low-price solar energy generation systems
with a quality assurance and servicing system that meets Japanese standards”
Conversion
efficiency
guarantee

QualitycontrolYieldelectricity
sales

Highperformance
products
modulesPlanning
anddevelopment
productionLandacquisition

Superior
intelligencecompetency

Credibility
track record

November 1968

Quality
According toJapanese standards
Tamagawa
Electronics Co., Ltd.
Ltd

2012年2月

Prospective
installation
Company
investors

OneStopStopSolution
SolutionOne

December 2012

December 2012

System sales

Operational
management

Tamagawa
Solar Systems Co., Ltd.

GP Energy Co., Ltd

Module production

ＧＰＰＶ
exclusive
distributionagreement)～Energy Value Creation as a System Integrator～～
Phase0Phase1
Project creation
Contract■Explanation of quote・ Balance of payments plan ■Contract signed■Confirmation of the ■Application for
consideration of
power system
connection■Application for■Equipment
equipment certification
accreditation

Phase2Start ofconstruction ①■Civil engineering work
■Solar power installation■Electrical work
■Monitoring systeminstallation■Consideration ofconnection(Basically three months)

Phase3
Start ofconstruction ②■Response regarding
consideration ofconnection■Application forconnection■Construction cost
contribution agreement

Phase4
Solar powersystem completed

Phase5Interconnection
construction

Start selling
power■Connection supply■Blueprint meetings
contract
・Operational reportingand management
and operation Submission -Effectivenessof annual cost report, etc. measurement■Power plant installation

Six months (for 1 Mw)■Procedures with contractual parties

Phase6■Procedures with power company■Procedures with the Ministry of Economy, Trade and Industry

Ⅲ．The State of Management Reforms
１１(Electronic and Telecommunications Equipment Business: 2. State of the Systems Sales Business)
Our Key Products■Modules with Japanese quality at Chinese prices【１】GPPV has in its track record a successful contract in 2010 with Siemens (Germany) for the
adoption of an MW power generation project.
【2】 Cracks in module cells that are invisible to the naked eye typically occur in the manufacturing
process. The cracking progresses over a number of years, thus leading to a dramatic decrease in theamount of power generated.
All of our modules undergo inspection by Japanese-made EL testers, and we purchase products thatmeet the standards of major Japanese module manufacturers. As a result, the modules made by GPPV
do not see any extreme decrease in the amount of power generated over the long term.
【３】 The Quality Control Department of Tamagawa Electronics (ISO9001 certified) is providing GPPVwith quality control know-how.

■Single crystal cell power generation
moduleＧＰＭ２４５－Ｂ－６０
・Module conversion efficiency of 15.1%

・Output performance guarantee of 25
years
Modules for J-PEC“Providing high-performance, low-price solar energy generation systems with a quality assurance and a servicing system that meets Japanese standards”■Solar power system sales
Delivery record for
FY ended March 2013

Tamagawa Solar Systems Co., Ltd.

Ｎｏ Contract period

Address

Installation site

Capacity (kWh)1 Sept. 2011
2 Jan. 2012
3 Apr. 2012
4 Jun. 2012
5
6
7 Jul. 2012
8 Aug. 2012
9
10
11
12
13 Sept. 2012
14
15
16
17
18
19 Oct. 201220
21
22 Nov. 201223 Dec. 2012
24
25
26
27
28
29 Feb. 201330
31 Mar. 2013
32
33
34
35
36

Kitasaku-gun , Nagano
Anjo-shi, Aichi
Fukuoka-shi, Fukuoka
Nogata-shi, Fukuoka
Koga-shi, Fukuoka
Sasaguri, Kasuya-gun, Fukuoka
Ayase-shi, Kanagawa
Toyota-shi, Aichi
Toyota-shi, Aichi
Nakagawa-machi, Chikushi-gun, Fukuoka①
Nakagawa-machi, Chikushi-gun, Fukuoka②
Shime-machi, Kasuya-gun, Fukuoka①
Shime-machi, Kasuya-gun, Fukuoka②
Toyota-shi, Aichi
Kamisu-shi, Ibaraki
Noda-shi, Chiba
Shime-machi, Kasuya-gun, Fukuoka
Kasuga-shi, Fukuoka
Miyaki-gun, Saga
Nobeoka-shi, Miyazaki
Miyoshi-shi, Aichi
Toyota-shi, Aichi
Toyota-shi, Aichi
Higashi-ku, Fukuoka-shi, Fukuoka
Saijo-shi, Ehime ①
Saijo-shi, Ehime ②
Saijo-shi, Ehime③
Saijo-shi, Ehime④
Omuta-shi, Fukuoka
Ukiha-shi, Fukuoka
Kurume-shi, Fukuoka
Omura-shi, Nagasaki
Hamacho, Goto-shi, Nagasaki
Yame-shi, Fukuoka
Saga-shi, Saga
Munakata-shi, Fukuoka

RoofParking lot
Roof
Roof
Roof
Roof
Roof
Roof
Roof
Roof
Roof
Roof
Roof
Roof
Roof
Roof
Roof
Roof
Parking lot
Vacant lot
Roof
Roof
Roof
Roof
Roof
Roof
Roof
Roof
Roof
Mountain forest
Roof
Roof
Vacant lot
Roof
Roof
Mountain forest

11.2
19.2
9.6
10.0
10.0
28.8
12.9
41.2
16.8
40.0
40.0
41.0
41.0
23.0
40.0
13.4
20.4
49.4
42.2
46.0
23.0
11.5
33.6
6.0
33.0
16.2
33.0
10.5
48.0
300.8
49.9
49.9
35.5
79.9
115.6
300.0

“Acquiring the know-how to install the optimal
systems that meet the needs of diverse customers.”

Parking lot installation

Carport PV power
generation systems

Distribution warehouse(SBS Holdings)

Apartment rooftop
installation

Vacant lot(residential area)

Mountain forest

Golf club

Planned power plant site

Tamagawa Electronics Co., Ltd.
(100% owned subsidiary)

Ⅲ．The State of Management Reforms(Solar Energy Business: 3. Business Activity Policy for the System Sales Business)

１２

Tamagawa Solar Systems Co., Ltd.
■ Solar power system sales■Contract Status for FY ending March 2014
Ｎｏ

Location

Capacity (kWh)

1 Goto-shi, Nagasaki
2 Wake-gun, Okayama
3 Shimonoseki-shi, Yamaguchi
4 Miyawaka-shi, Fukuoka
5 Minamishimabara-shi, Nagasaki
6 Fukutsu-shi, Fukuoka
7 Munakata-shi, Fukushima
8 Hita-shi, Oita
9 Saga-shi, Saga
10 Sasebo-shi, Nagasaki
11 Taku-shi, Saga
12 Yame-shi, Fukuoka
13 Buzen-shi, Fukuoka
14 Omura-shi, Nagasaki

1,911.0
1,567.9
1,547.9
900.0
987.3
308.8
300.0
146.8
115.6
99.1
81.1
79.9
49.9
49.9

(Fukuoka Office, as of May 13, 2013)
Ｎｏ

Location

容量【kWh】

15 Kurume-shi, Fukuoka
16 Miyazaki-shi, Miyazaki
17 Minamishimabara-shi, Nagasaki
18 Shimonoseki-shi, Yamaguchi
19 Goto-shi, Nagasaki
20 Goto-shi, Nagasaki
21 Imari-shi, Saga
22 Koyu-gun, Miyazaki
23 Koyu-gun, Miyazaki (2)24 Fukuoka-shi, Fukuoka
25 Kitakyushu-shi, Fukuoka
26 Goto-shi, Nagasaki
27 Fukuoka-shi, Fukuoka
28 Miyazaki-shi, Miyazaki

An image of the start of construction on-site(contracted) ）

49.9
49.9
49.0
49.0
40.0
35.0
987.3
49.0
49.0
30.6
28.5
24.1
21.6
10.0

■Plan for FY ending March 2014

■Solar System Sales Business
Points on Business Activities
１．Initiatives for Generating Income from Peripheral BusinessPreparations for the launch of a Maintenance (cleaning, inspection, measuring) Business Division
２．Continuation of work in a small elite EPC* group (current consisting of six members) and thecreation of recommendation opportunities for the purpose of constructing an external network to
make possible the opportunities for introducing and providing ideas to prospective companies thatmight install mega solar.
３．Improved name recognition
Products will be fitted with an ad billboard of our company after they have been delivered. Offer tours.
※EPC: Product management of the three areas of engineering, procurement, and construction.

Ⅲ．The State of Management Reforms
１３(Solar Energy Business: 4. Starting the Solar Power Plant Business)

Green Rush Project

Ｎｅｗ Start of preparations for the business from July 2012.
■Large-scale Solar Energy Power Plant (Mega Solar) Business■Challenging ourselves to go from being a support business to an
actual player

ＳＰＣ

ＳＰＣ

ＳＰＣ

GP Energy Co., Ltd

GP Energy2 Co., Ltd

GP Energy3 Co., Ltd

Established
September 2012

Established
September 2012

Established
September 2012

【1】Achieving over a short period of time an
impressive track record in solar power system sales【２】Addressing our own problematic profit model that susceptible tomarket impact
Total power buyback program for 20 years of stock-based business【3】Take on a central role in popularizing renewable energy in Japan
Location/size

January 30, 2013
■Overview of the funding recruitment (total amount: ¥876 million)
Private placement of
new shares（１） Final payment date（２）Total number of shares issued（３）Total number of warrants（４）Total issue price（５）Amount of cash raised（６） Net acquisition amountJanuary 30, 2013
2,136,000 shares¥130 per share¥277 million¥131 million¥120 million

Warrants

Shimonoseki power
generation facility
Shimonoseki-shi,
Yamaguchi 24,081m2
1.5Ｍｗ

Goto Islands power
generation facility
Goto-shi, Nagasaki/23,936m2
1.9Ｍｗ

Mission Valley power
generation facility
Miyawaka-shi, Fukuoka
29,097m2
1.9Ｍｗ

Power output
Electric power
¥42
¥42
¥42
selling price(per 1 kWh)
Outline of
Property lease agreement Property lease agreement Property lease agreementwith a 21-year term
agreementwith a 20-year termwith a 20-year term
Scheduled to 2Q FY ending March 2014 4Q FY ending March 2014 4Q FY ending March 2014
start operation

January 30, 2013
２０14
２０14

4,843,000 shares¥150 per share¥770 million¥770 million¥756 million

２０34
２０34

Building a stable
growth modelFY n
FY2017■Application of funds
Units: Round-downPrice of modules and mounts
Electrical facilities
Construction work
Structures
Other expenses
Total

Shimonoseki power
generation facility¥160 million¥62 million¥15 million¥25 million¥262 million

Goto Islands power
generation facility¥210 million¥145 million¥150 million¥35 million¥30 million¥570 million

20-yearstock-based
business

FY2016

Prior to FY nn-1
FY2015FY2014ＦＹ2014/3(Forecast)

FY2016FY2015FY2015FY2014FY2014FY2014ＦＹ2015/3 ＦＹ2016/3(Forecast) (Forecast)

ＦＹ2017/3(Forecast)

FY n

Ⅲ．The State of Management Reforms
１４(Solar Energy Business: 5. Management Policy for the Solar Power Plant Business) 】

Ｎｅｗ■Large-scale Solar Energy Power Plant (Mega Solar) Business

ＳＰＣ

Ownership
GP Energy Co., Ltd 1～3

Listings
for sale

Focus
Focusonongreater
greater
efficiencyofefficiency offund
funduseuse
Creation
Creationofofprofit
profitSale

ＳＰＣ

GP Energy Co., Ltd 4～20

Electric power company
Revenue from sales of electric power

EPC Corporation
Contract agreement
Tamagawa Solar Systems Co., Ltd.

O&M contract

Solar power generation facility

Specified contract

Project finance

Loan
LenderSilent partnership
Institutional investors
andＢusiness companies

Silentpartnership
Investment

CapitalReinvest
O&M Corporation

Property lease agreement

Land owners andleaseholders

Asset management contract

Asset manager※EPC: Product management of the three areas of engineering, procurement, and construction.
※O&M (operation & maintenance) contracts Outsourcing of operations and maintenance, etc

TAMAGAWA HOLDINGS CO., LTD.
ir@ tmex.co.jp
Tokyo Office
1-6-15 Hamamatsu-cho Place 1F, Hamamatsu-cho, Minato-ku, Tokyo 105-0013 Japan
Tel: +81-3-6435-6933 Fax: +81-3-6435-6934

These materials are for the purpose of providing information on the business performance during the reporting period ended March 2013. They are not for the purposeof soliciting investment in the securities issued by this company.
In addition, these materials were put together on the basis of data available as of May 13, 2013. The opinions, forecasts, and what not listed within these materials are
based on our own judgments at the time of the compilation of the materials. We therefore offer no guarantee or promises in regard to the accuracy or safety of theinformation. And the information is subject to change without prior notice.