March 1, 2017
Company name: Tamagawa Holdings Co., Ltd.
Representative: Toru Masuzawa, President(JASDAQ Code 6838)
Contact:
Junya Tokumoto,Corporate Planning Department
Telephone:+81-3-6435-6933

Tamagawa Holdings Announces Revision of Results Projections
Based on the latest trends in financial results, Tamagawa Holdings has revised as follows the consolidated
results projections released on May 13, 2016.

1. Concerning the revision of consolidated results projections
Revision of consolidated results projections for the fiscal year to March 2017 (April 1, 2016 until March 31, 2017)
Net SaleOperatingincomeOrdinary
incomeNet income for the period
attributable to shareholdersof the parent company

Net income forthe period pershare

Yen
Previous projections (A)
6,633

354

260

192

4.58

Revised projections (B)

4,424

133

51

120.30Change in amount (B-A)-2,209

-221

-209

-179

-

Rate of change-33.3%-62.5%-80.3%-93.4%-(Supplementary information:

7,259

279

211

165

3.97

Actual results for the priorfiscal year)(Fiscal year to March 2016)(Unit: Million yen)
Reason for the revision
As disclosed in the release dated as of this communication entitled "Tamagawa Holdings Announces Acquisition ofProperty, Plant, and Equipment (Large Scale Solar Energy Power Plant Facility) through an Installment Purchase
Agreement," the solar energy power plant located at Kasumigaura city, Ibaraki prefecture, scheduled to initiate
electric power sales in late March 2017 acquired by consolidated subsidiary GP Energy B LLC of Tamagawa
Holdings (the "Power Plant") was initially projected to be sold by Tamagawa Energy Co., Ltd. to an externalcustomer, with the proceeds and earnings from the sale to be recognized on accounts.
However, in the light of the recent changes in the business environment including regulatory changes concerning
the power generation business using renewable energy, Tamagawa Holdings conducted a further internal in-depth
review of the matter. As a result, it was judged that instead of seeking a one-time gain from the sale of the PowerPlant, the acquisition of stable cash flows over the course of twenty years obtainable in the case of continued
ownership will strengthen the earnings structure and the financial structure of Tamagawa Holdings Group. As aconsequence, instead of the sale to an external buyer, it was decided to operate the Power Plant as a business owned

by Tamagawa Holdings Group.
Furthermore, in the market for solar energy power plants operated under the fixed-price purchase system,
purchasing demand from power generation operators has remained robust. However, the revision of tax regulations
and application regulations slated to take effect from April 2017 has connected to intense competition surrounding
the acquisition of procurement sources eligible to connect to the power grid during March 2017. In addition todecreases in for-sale-projects and sales revenues envisioned at Renewable Energy System Sales Operations, furtheradverse effects came from a notice released by the Agency for Natural Resources and Energy on November 18,
2016, calling public attention to the transition to the new system, with the acceptance of applications for minor
amendments by the Bureau of Economy, Trade and Industry necessary for the procurement and sale of solar energy
power plants by March 2017 ending on January 20, 2017. As a result, for the acquisition of for-sale-projects theactual procurement activities and sales activities could not actually be implemented as envisioned. Due to the tworeasons stated above, prospects are for sales, operating income, ordinary income, and net income for the period tomiss initial projections.
Notably, net income for the period is subject to change due to the effects of estimates related to tax effectaccounting. An announcement will be made promptly in case of new developments with significant effects onresults.
Given these conditions, in order to revive order receipts and sales revenues at the Renewable Energy System
Sales Operations, in addition to sales of solar energy power plant equipment, efforts will be made starting in thecurrent fiscal year to strengthen sales frameworks for small-format wind power plants along with the promotion ofrapid and aggressive marketing activities. These efforts are intended to focus on expanding the business field of theRenewable Energy System Sales Operations and to achieve a recovery of earning power beginning in the next fiscalyear.
Tamagawa Holdings will persist in all-out efforts to increase enterprise value and to maximize earnings over themedium and long terms.
(Note) The projections stated above have been prepared based on currently available information. Actual results
may differ from the stated projections due to future changes in various factors.
Supplementary information
Outline of the Power Plant re-purposed from a project-for-sale to a Company-owned operation.
(1) Location

Kamo, Kasumigaura city, Ibaragi prefecture(2) Operator

GP Energy B LLC (a subsidiary of a fully-owned subsidiaryof Tamagawa Holdings)(3) Site area

Approximately 40,354 m2(4) Electric power generating capacity

Approximately 2.4 Megawatt(5) Electric power sales price (fixed for 20 years)

36 yen / kWh (tax excluded)(6) Income from electric power sales

105 million yen / year (approx.)(prospective)(7) Estimated electric power generation in theApproximately 2,900,000 kWh

first fiscal year (projected)(8) Start date of electric power sales (prospective) End of March 2017