Mid term Management Plan
2016-2020

29th,June, 2016
Business forecast and future prospect in this document are forecasts determined based on the information currently acquired and may containpotential risks and uncertainty. Therefore, the actual results may differ from these business forecasts due to various factors. Your priorunderstanding is appreciated.

Corporate Overview

Major history ~our group’s progress~
May 1970

Founded Tamagawa Electronics Co., Ltd. Started development,
manufacture and sale of high-frequency circuit element.

August 1999

Registered the shares as over-the-counter at Japan Securities
Dealers Association.

December 2004 Cancelled over-the-counter at Japan Securities Dealers
Association and had the shares listed at JASDAQ Exchange, Inc.
October 2007

Business name changed to Tamagawa Holdings Co., Ltd. bycompany split Acquired 100% ownership of Tamagawa
Electronics Co., Ltd.

July 2011

Started renewable energy business.

April 2015

Tamagawa Electronics Co., Ltd. founded Tamagawa Electronics
Vietnam Co., Ltd.

January 2016

Newly constructed hydrogen business preparation room.

Group system chart

Tamagawa Holdings Co., Ltd.
Business
supportBusinesssupportSubcontract

Subcontract

Tamagawa Electronics Co., Ltd.
(TAMAGAWA ELECTRONICS VIETNAM CO.,LTD）

Electronics /communication device
business
Manufactured goods

customers

Business
supportSubcontract

Tamagawa Energy Co., Ltd.

GP Energy Co., Ltd. etc.

Renewable energy
system sale businessSolar / geothermal
power plant business

Products

Customers, Investors

Electricity selling

Electricity companies

Business overview①■Electronics / communication device business
Design, manufacture and sale of high-frequency device and apparatus used at
facilities including mobile communication base station, TV broadcasting, public
radio system, etc. using high-frequency wireless technology (major products:amplifier, fader, filter, distributor, synthesizer, etc.)

High-frequency amplifier Low noise amplifier

UPD type high-power synthesizing distributor /waterproof high-power distributor series
CFA / UFA / SFA fixed fader series

5G R&D

Business overview②■Renewable energy system sale business
Planning / sale of power generation equipment / members using renewableenergy and consulting service related thereto.

Business overview③■Solar / geothermal power plant business
Construct / operate power generation equipment using renewableenergy and sell electric power as our own power plant.

Business Resultsin Previous Business Years

Business result transition of past business years
Exited from the chronic state of deficit. Succeeded in resumption of dividend by growing to be structure to secure profit.
Profit was secured in the fiscal year ending Mach 2016, but resulted in negative growth due to influence of investment
control for mobile phone base stations.
600

8,000
531

500

477

400

7,000

Investment control for mobile
phone base stations

373

300

6,000
279

5,094

Exist from chronic state of deficit

200

5,000
4,171

100
0

7,259

4,0003,671
2,639

3,106
△ 29

3,000

△ 1002,000△ 200△ 300△ 286△ 4000FY ending March 2011
2,6390

Sales (million yen)
Dividend per share (yen)Operating profit (million yen)

△ 286

Resumptionof dividend
1.00
0FY ending March 2012
3,1060△ 29

Sales (million yen)

0
FY ending March 2013
3,6710373

Dividend per share (yen)0
FY ending March 2014
4,1710477

Operating profit (million yen)

1.50
1,000

FY ending March 2015
5,094

FY ending March 2016
7,259

1.00

1.505312790

Profit and loss status of the latest 3 terms: Review by segment(Unit: million yen)Segment

Fiscal year ending March 2014
Sales
Operating profit

Fiscal year ending March 2015
Sales
Operating profit

Fiscal year ending March 2016
Sales
Operating profit

3,229

480

3,400

467

2,091

△11Renewable system sale business

890

51

1,606

112

4,938286

Solar power plant business

51

△1987

22230

56

Geothermal power plant business

－－－

△0－

△20

4,171

477

5,094

531

7,259

279

Electronics / communication device businessTotal amount after consolidation adjustment

Electronics / communication device businessFiscal years ending March 2014 and March 2015 transited in a good state, but in fiscal year ending March 2016, both sales
and operating profit decreased due to rapid facility investment control for the mobile phone infrastructure market.
Renewable energy system sale businessWith strong demand for mainly solar power generation facilities as investment products and the business result transited ina good state. In addition, geothermal power generation facilities are for sale in fiscal year ending March 2016.
Solar / geothermal power plant businessStarting with Shimonoseki Plant, in March 2016, Tateyama Plant and Sodegaura Plant were newly constructed currently withplants of approximately 5 megawatts.

Midterm Management PlanPositioning and business strategiesof mid term management plan<<Positioning of mid term management plan>>
Aim for construction of business quality for consolidated operating
profit of 1 billion yen with view of active entry to new business byenhancing the existing business structure in order of maximization of
the business until 2020.
<<Business strategies by segment>>
Electronics /communication device
business

Aim to be No.1 company in the niche field as the expert group ofanalog high-frequency technology which has become the rarity value.

Renewable energy
system sale business

Aim to be the general trade company of not only renewable energy butof general environmental business through active approach of newbusiness.

Solar / geothermal
power plant business

Aim to build the scheme for large-scale power plant development andestablish profit model.

Emphasized profit values or indexes for business
FY2016FY2020Result of previous term Target value
Consolidated operatingprofit(Operating profit rate)
ROE<Current net profit /shareholders’ equity>

EPS
Current profit per share

Dividend ratio

Consolidated
Sales

1 billion yen（10.7%）

Aim for maximization of profit with profit rate
improvement and cost management by providing
high added-value products and services.

Over 15.0%

Optimally and effectively rotate gross asset
under high profit rate to conduct managementwith awareness for capital efficiency.

3.9yen15yen

Aim for maximization of shareholders’ profit byconducting management with awareness for theabove ROE.

37.7％

About20%~30%

Aim to become a high-return company for theshareholders while preparing for investment for
future and environmental change.

0.27 billion yen（3.8％）

5.2%

7.2 billion yen

Focus on the main business as well as aimingOver
for the business expansion by actively
10 billion yen

considering new products with high feasibility.

Mid-term management plan:
Target of consolidated PL value
12,0002000
1800

10,14010,000

8,000

1600
1400
7,259
6,633

1,090

6,000

1200
1000
800

4,000

2,000

600
354

279

400
200

00
Proceeds
売上高

Proceeds
Operating profit

Operating profit
営業利益

FY ending March 2016

FY ending March 2017

FY ending March 2020

7,259

6,63310,1402793541,090

Current net profit: FY ending March 2016 / 165 million yen, FY ending March 2017 / 192 million yen, FY ending March 2020 / 650 million yen.

Midterm management plan: Proceeds / profit target by segment
Operating profit
990
790
590
390190▲ 10Mar 2016 result
Electronics / communication device businessMar 2017 planMar 2020 plan

Renewable energy system sale businessSolar power plant business(Million yen)

*The upper layer is sales and the lower is operating profit.

Segment

New businessMar 2016 result

Mar 2017 planMar 2020 plan

Electronics / communication device business

2,091△112,600
214

3500
350

Renewable energy system sale business

4,938
286

3,787
223

5100
370

Solar power plant business

230
56

246
61

1,190335

New business

－－－－

350
35

7,259
279

6,633
354

10,1401,090

Total amount after consolidation adjustment

Electronics / communication device business～Aim to expand the share in the domestic public infrastructure market such as demand
from public agencies and train radio and professional radio in the airports, etc.～
Proceeds

Proceeds: million yen

4,000

Operating profit

3,500

Operating profit: million yen

3503,000350 ■Status and topics until the previous term■
250

・Enhanced demands from public agencies and public infrastructure
related order activities and delivered “professional radio for airports.”

150

・Founded a subsidiary company in Vietnam and started production
activities for expansion of overseas mobile base station investment
mainly in Asia.

2,500
2,000

3,500

1,500

1,000500

2,091

50-110-50
FY ending Mar 2016

・The strategy to expand order opportunities by participating inplanning and development stage of large project of major
manufacturers is in a good state.

FY ending Mar 2020

＜Major approach to implement the midterm management plan＞
・Develop actually-used equipment such as quasi-millimeter, millimeter analog frontend and high-efficiency power amplifier, etc.

and test equipment such as reliability evaluation device of semiconductor for the next-generation mobile terminals for 5G
commercialization in 2020 to lead to acquirement of orders.
・Enhance proposal of “AM / FM retransmission device for blind zones” and “ subsystem for the next-generation terrestrial digital
broadcasting equipment” prepared as infrastructure for Tokyo Olympic Games to lead to acquirement of orders.
・Achieve “Japanese quality / low price” by improving the local content of members at the overseas plant (Vietnam) and aim forshare acquirement and expansion in overseas market.

・Aim for expansion of operations by M&A of the peripheral business expected with synergy.

Renewable energy system sale business～Not only solar power, but also consider possibilities of various renewable energy to expand business size.～
Proceeds
Operating profit

Proceeds: million yen

5,000Operating profit: million yen

400

4,500
4,000

370

3,500
3,000
2,500

4,938340

・Order sales is in a good state as excellent investment / tax-saving
product thanks to preferential tax treatment

310

・FIT value decreased by solar power generation and started specificconsideration for small-size wind power as new commodity.

280

・Further enhance sales structure by increasing personnel.

5,100

2,000
1,500
1,000286■Status and topics until the previous term■

370

500
0250
FY ending Mar 2016

FY ending Mar 2019

<Major approach to implement the midterm management plan>
・Secure land for small-size wind power plant and acquire permission to develop active sales activities as excellent sales
commodity following solar power generation.

・Aim for early actualization as sales products also by researching geothermal, biomass, small hydroelectric generation facility.
・Explore the used sales market of solar power plants expected to become active in the future along with foundation of theinfrastructure fund.
・Improve the organizational structure by expanding the sales network and enhancing the personnel necessary for businessexpansion.

・Develop efficient sales activity by promoting business collaboration with various related companies for new customer
exploration.
・Actively start consideration for entry to environmental business field besides the above.

Solar / geothermal power plant business～Expand stable profit business by exploring and possessing high-return products as our own property～
Proceeds
Operating profit

Proceed: million yen

1,200Operating profit: million yen

330

335
1,000

300
270
240

800

210

600

1,190

180
150
120

400

90200

■Status and topics until the previous term ■・Succeeded in expansion of profit by electric power selling of
Shimonoseki Plant, Tateyama Plant and Sodegaura Plant.
・Promote optimization of investment return rate by using
finance lease and project finance.
・Acquire new own product.

6056230

3000
FY ending Mar 2016

FY ending Mar 2020

<Major approach to implement the midterm management plan>
・Actively work on the products with high FIT price (@40 yen ~32 yen/kwh) right and aim to expand
generation capacity of our own power plant from current 5 megawatts to 20 megawatts.
・Actively start development of geothermal power generation which is stable and high return and focus
on early actualization of electricity selling.
・Consider possibility of renewable energy plant in Asian countries for globalization of the business.

Status of approach to new business■Consideration policy for new business
Actively consider entry to business with synergy effect or direct / indirect relation
with the existing business.
■Current status of approaches
1. Hydrogen related business
Founded the preparation room as newenvironmental business following renewableenergy business. Currently seeking various
possibilities for commercialization.

2. Business investment related businessContribute to group profit by investment
for excellent products and fundinvestment for business regeneration.

Store electricity by altering electric power generated byrenewable energy to hydrogen. Consider
commercialization by foreseeing occurrence of newsocial needs such as electricity storage product.
Invest to excellent products as the qualified
institutional investor.
(anonymous union investment, real estate liquidation,
stock investment)

3. Other environmental business
Actively consider the business field using
environmental resources other thanrenewable energy.

Now under research and consideration forcommercialization of various environmental resources.