Summary of Consolidated Financial Statements
for the Second Quarter of the Fiscal Year Ending March 2016 (J-GAAP)
November 12, 2015
Company Name: Tamagawa Holdings Co., Ltd.
Stock Code:
6838
Representative:
Toru Masuzawa, President
Contact:
Akihiro Ushiroda, Director
Scheduled Date of Filing Quarterly Securities Report:
Scheduled Commencement Date of Dividend Payout:
Quarterly Earnings Supplementary Explanatory Documents:
Quarterly Earnings Presentation:

Listing: JASDAQ (Tokyo Stock Exchange)
URL:
http://www.tmex.co.jp/Tel: +81-3-6435-6933
November 13, 2015
—YesYes(All amounts are rounded down to the nearest million yen)

1. Consolidated Results for the Second Quarter of Fiscal Year Ending March 31, 2016
(from April 1, 2015 to September 30, 2015)(1) Consolidated Financial Results (cumulative)(Percentages indicate changes from the year-earlier period)
Net sales

Operating income¥ Million%¥ Million%¥ Million(42.4)(160)—
5.7212(1.3)
2Q FY 2016: −¥254 million (—%)

2Q FY 2016
1,108
2Q FY 2015
1,923
Note: Comprehensive Income:%¥ Million%(190)—(249)
—209
(4.1)
120
36.9
2Q FY 2015: ¥120 million (−37.1%)

Net income per shareafter dilution

Net income per share
2Q FY 2016
2Q FY 2015

Profit attributable toowners of parent

Ordinary income¥¥(6.01)
2.94

—
2.86

(2) Consolidated Financial Position
Total Assets

Net Assets¥ Million

2Q FY 2016
FY 2015
Reference: Shareholders’ Equity:

Equity Ratio¥ Million

%

6,161
2,847
6,375
3,161
2Q FY 2016: ¥2,828 million

45.9
48.9
FY 2015: ¥3,120 million

2. Cash Dividends
End of 1Q

Annual Dividends
End of 3Q

End of 2Q¥¥

End of 4Q¥Total¥¥

FY 2015—0.00—1.00
1.00
FY 2016——FY 2016—
1.00–3.00
1.00–3.00(forecast)
Note: 1. Revision of the latest released dividend forecast: None
2. The source of dividends for the fiscal year ended March 31, 2015, and the fiscal year ending March 31, 2016,
includes the capital surplus.

3. Forecast for the Fiscal Year Ending March 31, 2016 (from April 1, 2015 to March 31, 2016)(Percentages indicate year-on-year changes)

Net sales¥ Million

Year toMarch 31, 2016%

5,600–7,300 11.0–43.8

Net income
per share

Operating income

Ordinary income

Profit attributable toowners of parent¥ Million%¥ Million%¥ Million%¥590–850 11.2–61.2

520–790

2.0–53.7

400–570(5.6)–34.9

10.00–14.00

Note: 1. Revision of the latest released financial results forecast: None
2. For details, see (3), "Explanation of consolidated earnings estimates and forward-looking information" onpage 4 of the attached materials.

*Notes(1) Changes in important subsidiaries during the period under review (six months): None
(Changes in subsidiaries accompanying change in the scope of consolidation)
New:(Company names:
Excluded:(Company names:Notes concerning changes in important subsidiaries during the period))(2) Application of special accounting treatment in the preparation of quarterly consolidated financial statements: None
Notes concerning application of special accounting procedures in the preparation of quarterly consolidated financialstatements(3) Change of accounting policies; change and/or restatement of accounting estimates
1) Changes in accounting principles caused by revision of accounting standards: Yes
2) Changes in accounting principles other than those mentioned above: None
3) Changes in accounting estimates: None
4) Restatement: None
Notes concerning changes in accounting policies(4) Number of shares issued and outstanding (shares of common stock)1) Number of shares outstanding (including treasurystock) at end of period
2) Number of treasury stock at end of period
3) Average number of shares outstanding during theperiod under review (first and second quarter)

2Q FY 2016

42,073,000 shares

FY 2015

42,031,000 shares

2Q FY 2016

614,245 shares

FY 2015614,245 shares

2Q FY 2016

41,425,476 shares

2Q FY 2015

40,946,932 shares* Statement concerning the status of implementation of quarterly review proceduresThis quarterly earnings presentation is not subject to the quarterly review procedures in accordance with the Financial Instruments
and Exchange Act. The quarterly review procedure for the quarterly consolidated financial statements has not been completed asof the time of the disclosure of this quarterly earnings presentation.
* Cautionary statement with respect to forward-looking statements
The forward-looking statements such as the forecasts for the business performance described in this document are based on thejudgments made by the Company in accordance with information currently available that is rational. For this reason, actual results
may differ from these forecasts due to a number of factors, including but not limited to the operating environment. For theunderlying assumptions and usage of earnings projections refer to "Explanation of consolidated earnings estimates andforward-looking information" on page 4 of the Attachment.

Tamagawa Holdings Co., Ltd. (6838)/Summary of Financial Statements for the Second Quarter for Fiscal Year Ending March 31, 2016

3. Consolidated Financial Statements(1) Consolidated Balance Sheets

AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable – trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other current assets

FY 2015 (consolidated)(In thousand yen)
2Q FY 2016 (consolidated)(As of March 31, 2015)(As of September 30, 2015)

1,523,979
1,377,201
110,467
245,833
90,78197,850160,265

1,534,471
733,184
74,687
720,179
90,87389,737
175,118

Total current assets
Non-current Assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, netMachinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, netLand
Construction in progress

3,606,379

3,418,253

422,620(292,741)
129,878
1,551,956(93,788)
1,458,167
705,960(579,468)
126,492
539,829
156,103438,622(298,338)
140,283
1,559,362(142,370)
1,416,991
711,598(604,250)
107,347
505,086
261,613

Total property, plant and equipment
Intangible Assets
Business rights
Software2,410,472

2,431,322

106,26487,912

103,979
79,289Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other assets
Allowance for doubtful accounts

0
194,1770183,269

22,86733,662
106,355(8,700)20,524
2,298
112,258(8,700)Total investments and other assets
Total Non-current Assets
Deferred Assets
Share issuance cost

154,1852,758,835

126,3812,740,972

10,706

2,453

Total deferred assets
Total Assets

10,706
6,375,920

2,453
6,161,679-1-Tamagawa Holdings Co., Ltd. (6838)/Summary of Financial Statements for the Second Quarter for Fiscal Year Ending March 31, 2016

FY 2015 (consolidated)(In thousand yen)
2Q FY 2016 (consolidated)(As of March 31, 2015)(As of September 30, 2015)

Liabilities
Current Liabilities
Notes and accounts payable – trade620,145

232,158

Short-term loans payable

50,000546,432

Current portion of bonds

20,00020,000Current portion of long-term loans payable

230,832

250,872

Lease obligations

46,801

48,073

Accounts payable - other

169,007

66,530

Income taxes payable

140,011

10,962

Advances received

10,399351,508

Provision for bonuses

73,18527,933

Other current liabilities

120,668

58,021

Total current liabilities

1,481,051

1,612,491

Bonds payable

40,00030,000Long-term loans payable

499,377

460,581

Lease obligations

947,147

923,359—

12,391

Net defined benefit liability

137,649

140,270

Asset retirement obligations

31,87032,140

Other non-current liabilities

77,416103,092

Total non-current liabilities

1,733,460

1,701,835

3,214,512

3,314,327

Capital stock

1,655,542

1,657,138

Capital surplus

1,076,885

1,037,064

Retained earnings

445,183

195,981

Treasury shares(61,279)(61,279)

Total shareholders’ equity

3,116,331

2,828,904

4,554

2,093

—(2,781)

4,554

(687)

40,522

19,134

3,161,407

2,847,352

6,375,920

6,161,679

Non-current Liabilities

Deferred tax liabilities

Total Liabilities
Net Assets
Shareholders’ Equity

Accumulated Other Comprehensive Income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeSubscription Rights to Shares
Total Net Assets
Total Liabilities and Net Assets-2-Tamagawa Holdings Co., Ltd. (6838)/Summary of Financial Statements for the Second Quarter for Fiscal Year Ending March 31, 2016

(2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income(Consolidated statements of income)(2nd quarter)(In thousand yen)

2Q FY 2015

2Q FY 2016

(April 1, 2014 – September 30, 2014) (April 1, 2015 – September 30, 2015)

Net Sales

1,923,538

1,108,165

Cost of Sales

1,306,684

754,766

Gross Profit616,854

353,398

Selling, General and Administrative Expenses

404,513514,256

Operating Income (Loss)

212,341(160,857)Interest income

427

187

Dividend income

45203

Foreign exchange gains

0

1,786

800

1,700

Other non-operating income

3,711

7,668

Total non-operating income

4,984

11,546

4,370

31,111

Loss on sale of trade receivables

362

432

Amortization of share issuance cost

1,009

8,252

Other non-operating expenses

1,666

1,220

Total non-operating expense

7,408

41,016

209,917(190,328)

Gain on sales of non-current assets
Gain on reversal of subscription rights toshares
Other extraordinary income

4,519

——

1,68140—

Total extraordinary income

4,559

1,681

Other extraordinary losses—

189

Total extraordinary losses—

189

Income (loss) before income taxes

214,477(188,836)

Income Taxes - Current

94,339

7,775

Income Taxes - Deferred(167)

52,590Total Income Taxes

94,17260,365Net Income (Loss)

120,305(249,202)

Profit (Loss) Attributable to Non-controlling
Interests——

Profit (Loss) Attributable to Owners of Parent

120,305(249,202)

Non-operating Income

Settlement received

Non-operating Expenses
Interest expenses

Ordinary Income (Loss)
Extraordinary Income

Extraordinary Losses-3-Tamagawa Holdings Co., Ltd. (6838)/Summary of Financial Statements for the Second Quarter for Fiscal Year Ending March 31, 2016

(Consolidated statements of comprehensive income)(2nd quarter)(In thousand yen)

2Q FY 2015

2Q FY 2016

(April 1, 2014 – September 30, 2014) (April 1, 2015 – September 30, 2015)

Net Income (Loss)

120,305(249,202)

Valuation difference on available-for-salesecurities

663(2,460)Foreign currency translation adjustment—(2,781)

Total other comprehensive income

663(5,241)

120,969(254,443)

120,969(254,443)——

Other Comprehensive Income

Comprehensive Income(Breakdown)Comprehensive income attributable to ownersof parent
Comprehensive income attributable tonon-controlling interests-4-Tamagawa Holdings Co., Ltd. (6838)/Summary of Financial Statements for the Second Quarter for Fiscal Year Ending March 31, 2016(3)

Consolidated Statement of Cash Flows(In thousand yen)

2Q FY 2015

2Q FY 2016

(April 1, 2014 – September 30, 2014) (April 1, 2015 – September 30, 2015)
Cash Flows from Operating Activities
Income (loss) before income taxes

214,477

Depreciation

44,376

91,719

Increase (decrease) in provision for bonuses

11,763(45,252)

Increase (decrease) in net defined benefit liability(2,789)

2,621

(472)

(391)

Interest expenses

4,370

31,111

Loss (gain) on sales of property, plant and equipment
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accounts payable - other(4,519)189(400,287)

644,016

61,619(172,125)(67,222)(387,986)(3,018)(127,172)(2,327)341,108

14,998(57,858)—(45,069)

Interest and dividend income

Increase (decrease) in advances received
Decrease/increase in consumption taxes
receivable/payable
Offsets for net sales and payment of lease charges(188,836)

Other operating cash flows

80,091

1,122

Subtotal(48,941)

87,195472

391

Interest and dividend income received
Interest expenses paid

(4,483)(7,075)

Income taxes paid

(76,410)(125,051)

Net cash provided by (used in) operating activities(129,363)(44,539)(317,873)(134,805)

4,520

25,000Cash Flows from Investing Activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities(938)(1,073)

Other investing cash flows(10,898)(6,090)Net cash provided by (used in) investing activities(325,189)(116,970)(100,200)

240,000

Cash Flows from Financing Activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

250,000

100,000

Repayments of long-term loans payable(188,541)(118,756)

Redemption of bonds(10,000)(10,000)

Proceeds from issuance of common shares40,800

3,066

Proceeds from issuance of subscription rights to shares

16,326—

Purchase of treasury shares

(179)

—

—

(40,635)

8,206

173,674

Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cashequivalents
Net increase (decrease) in cash and cash equivalents—(1,671)(446,346)

10,492

Cash and cash equivalents at beginning of period

1,763,931

1,523,979

Cash and cash equivalents at end of period

1,317,584

1,534,471-5-Tamagawa Holdings Co., Ltd. (6838)/Summary of Financial Statements for the Second Quarter for Fiscal Year Ending March 31, 2016

(Segment information, etc.)
Segment Information
I. 2Q FY 2015 (from April 1, 2014 to September 30, 2014)
1. Information related to sales and income (loss) for each reportable segment(In thousand yen)
Reportable Segment
Electronic and Renewable
Geothermal
CommuniEnergy
Solar PowerPower Plant
cation Device System Sales Plant BusinessBusiness
Business
Business

Total

Stated value in
Adjustment consolidated
amountstatements of(Note 1)
income(Note 2)

Net Sales
Sales to external
1,741,350
136,790
45,398—1,923,538—
1,923,538
customers
Internal sales ortransfers between
—
—
—
—
—
—
—
segments
Total
1,741,350
136,790
45,398—1,923,538—
1,923,538
Segment income (loss)
257,095(5,605)16,023—
267,514(55,173)
212,341
Notes: 1. The adjustment of −55,173 thousand yen to segment income (loss) consists of 178 thousand yen fordepreciation expenses and −55,351 thousand yen for group management division losses not allocated tooperating segments.
2. Segment income (loss) matches the operating income (loss) from the consolidated statements of income.

II. 2Q FY 2016 (from April 1, 2015 to September 30, 2015)
1. Information related to sales and income (loss) for each reportable segment(In thousand yen)
Reportable Segment
Electronic and Renewable
Geothermal
CommuniEnergy
Solar PowerPower Plant
cation Device System Sales Plant BusinessBusiness
Business
Business

Total

Stated value in
Adjustment consolidated
amountstatements of(Note 1)
income(Note 2)

Net Sales
Sales to external
945,706
27,238135,220—
1,108,165—
1,108,165
customers
Internal sales ortransfers between
14,482———
14,482(14,482)—
segments
Total960,188
27,238135,220—
1,122,647(14,482)
1,108,165
Segment income (loss)(90,314)(109,268)
50,816(55)(148,822)(12,035)(160,857)
Notes: 1. The adjustment of −12,035 thousand yen to segment income (loss) consists of −3,207 thousand yen for
unrealized losses and −8,828 thousand yen in losses for allocation of group management division losses tooperating segments.
2. Segment income (loss) matches the operating income (loss) from the consolidated statements of income.

2. Changes in reportable segments
The classification of reportable segments for the second quarter of the previous fiscal year was as follows:
Electronics and Telecommunications Equipment Business, Solar System Sales Business, Solar Power Plant
Business, and Geothermal Power Plant Business; however the Solar System Sales Business was changed tothe Renewable Energy System Sales Business starting in the first quarter of the current fiscal year.
The background to this change is that the Group plans to develop business not only in solar but also invarious other fields of renewable energy and that in the future it expects to conduct business in non-solar
power plants with tranch sales and equipment purchases and sales in power generation systems. We havemade this change in segment in order to accurately reflect the state of Group activities by including theseactivities in corresponding segments and with the aim of more accurate disclosure of business operations.
In addition, the disclosure of segment information for the second quarter of the previous fiscal year has
been prepared based on the classification of reportable segments after this change.

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