FY2022 March

The 2Q Summary of Accounting Statements[Japanese Standards] (consolidated)

November 12,2021
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. 12, 2021
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 2022 Mar.: 2Q (from Apr 1, 2021 to September 30, 2021)(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.yenmil.yen％mil.yen％FY2022 Mar. 2Q
FY2022 Mar. 2Q

yen

yen

21.02
6.08

20.45
5.81

mil.yen％FY2022 Mar. 2Q
2,907
28.9
189
235.1
161
FY2022 Mar. 2Q
2,256
△8.6
56 △82.922(Note) Comprehensive FY2022 Mar. 2Q
126mile.yen 352.9％) FY2022 Mar. 2Q
profit:(Quarterly net profit per
Quarterly net profit per
share after issuable
share
share adjustment

％

603.1
120
275.6
△90.6
32 △74.8
27mile.yen ( △76.3％)

１.Consolidated financial status
Gross asset

Net asset
mil.yenFY2022 Mar. 2Q
FY2021 Mar.
(Reference)Own capital: FY2022 Mar. 2Q

Own capital ratio
mil.yen

7,612
8,386
5,302mile yen

％

5,313
5,162
FY2021 Mar.

69.7
61.4
5,151mile yen

２．Status of dividends
Annual dividends
End 1QFY2021 Mar.
FY2022 Mar.

End 2QEnd 3Q

Term end

Total

yen

yen

yen

yen

yen

－
－

0.00
0.00

－

7.00

7.00

5.00
～30.00None (Note)

5.00～30.00

FY2022 Mar. (forecast)－(Note) Correction from the dividend forecast recently announced:

３．Consolidated performance forecast of FY 2022 Mar.（from Apr 1, 2021 to Mar. 31, 2022）(% indication: change compared with the same quarter of the previous year)
Sales amountmil. yen

Operating profit%

mil. yen%

Current net profit
belonging to theCurrent net profit per share
Ordinary profit
parent company’s
shareholders
mil. yen%mil. yen%
yen

Full business year
6,845
1.5
327
54.9
297
(Note) Correction from the performance forecast recently None (Note)announced:

144.8

208 131.1

38.40

※

Notes

(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:None(3)Change of accounting policy, change of accounting estimate, redisplay of revision① Change of accounting policy for revision of accounting
Yesstandard, etc.
None
② Change of the accounting standard except for ①③ Change of the accounting estimate

None④ Redisplay of revision

None(4) Number of shares issued (ordinary shares)① Number of term-end shares issued
FY2022 Mar. 2Q(including own shares)
FY2022 Mar. 2Q② Number of term-end own shares③ Average number of midterm shares
FY2022 Mar. 2Q(quarterly accumulation)**

5,835,900shares

FY2021 Mar.

5,780,000shares

64,484shares

FY2021 Mar.

61,484shares

5,735,739shares

FY2022 Mar. 2Q

5,272,120shares

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
Description concerning the future of performance forecast, etc. described in this document is based on the information currently
obtained by us and the certain precondition judged as reasonable, and the actual performance, etc. may drastically vary due tovarious factors. Please see p.4 “Explanation on the Future Forecast Information of the Consolidated Performance Forecast,etc.” for assumption as the precondition of the performance forecast. and attention for usage of performance forecast.

1. Qualitative information concerning the current quarter financial results(1) Overview of the management result

The matters concerning the future in the text have been determined as of the final day of the current consolidated
accounting year.

The Japanese economics in the current first quarter consolidated accumulative period continues to shift withuncertain situation due to the effect of Covid-19 epidemic and the impacts on the global economics given by trend andperspective of the issues between US and China, and uncertainty in the policies. In particular, while the pandemic of
Covid-19 remains to give a great impact, our group has engaged in both prevention of infection spread and sales
activities by maintaining working from home and holding video conferences by restriction on non-essential outings andmeasures including temperature check and mask wearing, etc.
Under such economic circumstances, for the electronic and communication device business, in addition to sales
expansion business mainly in the 5G related market which was launched for commercial operation and public related
market, through the efforts according to transition of the time including innovation and enhancement of the website withthe purpose of increase of new clients’ inquiries as non-contact type sales due to Covid-19 epidemic, 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 and terahertz band products, etc. necessary
for wireless transmission of data of large volumes, where our active efforts have achieved great successes such asorder receipt of “optic semiconductor reliability evaluation apparatus” used for research and development for the nextgeneration optical network construction and adoption of “academic-industrial cooperation research for Beyond 5G/6G.”
In the mobile communication field, the demand for high frequency components is stably increasing mainly including
5G related market. We will further proceed with expansion of share in the accelerated mobile infrastructure sharing
field and industrial-academic cooperation research for “Beyond 5G.”
Proposals made remotely for new clients related to mobile communication facilities for overseas have been continued
due to the impact of Coivd-19, but there is no drastic progress.
Demands for the optical transmission device, digital signal processor, etc. are increasing as business-use wirelessincluding “Optical DAS system for airport MCA” adopted by Kansai International Airport, disaster measures, andsurveillance system in the public filed. We will work on further demand expansion in this field. In addition, we havejoined the national project as “National Resilience” from the development stage to secure long-term and stable order
receipt.
In addition, by enhancing proposals of self-developed products along with promotion of active business domain
expansion by introducing our self-developed technology for surveillance units targeting the Drone business market andjoining the private satellite business, we will continue the activities for profit expansion in order to establish the stablebusiness base.
In the renewable energy business, we did not sell any megasolar plants in the same term of the previous year, but inJune 2021, we sold the Hokkaido Noboribetsu Plant we had owned. Additionally, we sold four wind power plants we
had owned, of which development we have been focusing on since the previous term, resulting in the sales amountgreatly exceeding that in the same term of the previous year. While we have sold all the mega solar power plants we
had owned, the pillar of our future strategy is to enhance development of small wind power plants by leveraging the fundfrom selling. By enhancing development of small wind power plants which are small per unit, we will ensure risk
dispersion and profitability and mobility and will contribute to continuous reduction of greenhouse gas by accelerating
development of new renewable energy power source.
We are also proceeding with the project with the large wind power plant (1.984MW) in Nemuro City, Hokkaido and thesmall waterpower plant in Flores Island, Nusa Tenggara, Indonesia.
As the result of the above, the amount of orders received in the current first quarter consolidated accumulative term
was 3,457 mil. yen (52.9% increase compared with the same term of the previous year), and the sales amount was
2,907 mil. yen (28.9% increase compared with the same term of the previous year). In terms of profit and loss,
operating profit was recorded as 189 mil. yen (235.1% increase compared with the same term of the previous year),ordinary profit was recorded as 161 mil. yen (603.1% increase compared with the same term of the previous year), anddue to resolution of future deductible amount at some consolidated subsidiaries. Therefore, the quarterly net profit
belonging to the parent company shareholders was 120 mil. yen (275.6％ increase compared with the same term of
the previous year).
In the electronic/ communication device business, we are focusing on exploration of new customers in addition tosales expansion activities mainly in the public related market. Especially in the public field, the demand is stably
increasing and is expected to transit steadily also from now on. Furthermore, by enhancing proposals of selfdeveloped products along with promotion of active business domain expansion through participation in new markets,
we will continue the activities for profit expansion in order to establish the stable business base as the entire electronic/
communication device business.

Our group is actively considering overseas development of the general environmental business as well as therenewable energy business mainly in Southeast Asia in addition to the domestic development, aiming for expansion ofoperation of the business. Our group will continue to engage in CO2 reduction and the measures for global warming
and also for building of the business system responsive to the ESG management and social transformation through
SDGs.
Management result status by business type segments is as follows.
We changed the business segments to be listed as the reported segment in the current first quarter consolidated
accounting term, and the current comparison and analysis in the first quarter consolidated accumulative period are
based on the categories after the change.

a. Electronic / communication device businessFor electronic / communication device business, since advance ordering by the customers increased as themeasures against delayed delivery due to the worldwide supply shortage of the semiconductors and non-iron metalmaterials, the amount of orders received was 1,289 mil. yen (17.8% increase compared with the same term of theprevious year).
For the sales amount, however, the impact cannot be avoided despite measures against the recent shortage ofthe electronic components, and we could not achieve the plan for the first half period which was made at the
beginning of the period due to extension of production by delay of delivery of some components, resulting in 1,654
mil. yen (11.0% decrease compared to the same period of the previous year). Nevertheless, as for profit, thanks
to the favorable transition of proceeds of the low-cost-rate products and decrease of overtime work due toencouragement of work from home during the pandemic of Covid-19 and reduction of expenses such as travel andtransportation costs, the segment profit resulted in 268 mil. yen (13.1% increase compared to the same period of
the previous year).
b. Renewable energy system sales business
Various solar power plants including the solar sharing plant in operation in Shimada City, Shizuoka Pref. as wellas Hokkaido Noboribetsu City Solar Power Plant sold in the first quarter end as well as 28 small wind power plantsof which development started operation before the end of September in Hokkaido have been selling power in agood state. Due to sellout of Hokkaido Noboribetsu Power Plant, the sales and profit have greatly increased,
and the amount of orders received was 1,167 mil. yen (267.9% increase compared with the same term of theprevious year), sales amount was 1,252 mil. yen (216.0% decrease compared to the same term of the previousyear), and segment loss was 125 mil. yen (921.7% compared to the same period of the previous year).

2.Consolidated financial statements and Notes(1)Consolidated balance sheet(In thousand yen)
FY 2020 (consolidated)(As of March 31,2021)

2Q FY 2021 (consolidated)(As of September 30,2022)

AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable - trade

2,448,235－

1,982,300
1,509,111

Merchandise and finished goods
Goods and products

1,637,354
1,222,818－
972,633

Work in proces
Raw materials and supplies

899,716
265,471954,836
298,914

Advance payments - tradeOther

43,925
230,822

65,462
182,905

Allowance for doubtful accounts△17,632△17,632

Total current assets

6,730,711

5,948,531

518,809△361,412

520,496△369,381

Buildings and structures, net

157,397

151,115

Machinery, equipment and vehicles
Accumulated depreciation

377,226△163,902

385,775△175,975

213,323

209,800

888,541△737,400

942,549△768,893

151,141

173,656

272,573

303,97600794,435

838,548

38,43753,09813,35253,6270091,53566,979Investment securities
Long-term loans receivable

256,621
136,462

260,352
136,462

Deferred tax assets
Other

198,395
132,883

164,988
153,315

Allowance for doubtful accounts△8,700－Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets

Total investments and other assets
Total non-current assets
Deferred assets
Share issuance cost

715,661

715,119

1,601,633

1,620,646

49,49840,490Development expenses
Business commencement expenses

41
5,045

26
2,486

Total deferred assets

54,58543,0038,386,929

7,612,181

Total assets

(In thousand yen)
FY 2020 (consolidated)(As of March 31,2021)

2Q FY 2021 (consolidated)(As of September 30,2022)

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable

492,050
29,190523,690
59,623Current portion of long-term loans payable
Lease obligations

318,388
30,941

334,888
5,387

Accounts payable - other
Income taxes payable

241,010
60,11355,34528,001

Advances received
Provision for bonuses

70,801
115,726

55,15491,029Provision for product warranties
Other

24,229396,566

68,345
128,018

1,779,018

1,349,485

Long-term loans payable
Lease obligations

100,000
475,187

100,000
408,000

Deferred tax liabilities
Net defined benefit liability

404,706
4,454

16,693
168

Asset retirement obligations
Long-term accounts payable - other237,301
15,199242,636
15,199Other

208,138

166,940

Total current liabilities
Non-current liabilities

Total non-current liabilities

1,444,988

949,6393,224,006

2,299,124

Capital stock
Capital surplus

2,423,857
1,662,065

2,456,302
1,654,480

Retained earnings
Treasury shares

1,124,707△61,373

1,245,285△61,373

Total shareholders' equity

5,149,257

5,294,695

7,847

8,244

△5,408△349

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Foreign currency translation adjustment
Accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets

2,438

7,895

11,227

10,465

5,162,922

5,313,057

8,386,929

7,612,181

(2) Quarterly consolidated statements of income and Quarterly consolidated statements of comprehensive income
Quarterly
Consolidated statements of income Consolidates first quarter period(In thousand yen)
2Q FY 2020 (consolidated)(As of September 30,2021)

2Q FY 2021 (consolidated)(As of September 30,2022)

Net Sales
Cost of sales

2,256,459
1,649,551

2,907,778
2,079,365

Gross profit

606,907828,413

Selling, general and administrative expenses

550,209638,441

Operating profit (loss (△))

56,698

189,972

Non-operating income
Interest income
Dividend income

5,870

1,546

Insurance income

536
25,571258
3,369

Gain on forgiveness of debts
Other

12,104
5,136

－
8,280

Total non-operating income

49,21913,45571,968

16,227

1,069

3,457

2,416

1,976

Total non-operating expenses

2,548
4,960

11,0639,314Interest expenses

82,96442,039Ordinary profit (loss (△))

22,953

161,387

Profit (loss (△)) before income taxes
Income taxes - current

22,953

161,387

Income taxes - deferred

15,117△24,265

11,90028,909Total income taxes△9,14740,810

Profit (loss (△))
Profit (loss (△)) attributable to non-controlling interests

32,101

120,577

32,101

120,577

Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodOther

Quarterly consolidated statements of comprehensive income
Consolidated Second quarter period(In thousand yen)
2Q FY 2020 (consolidated)(As of September 30,2021)
Profit (loss (△))
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income

2Q FY 2021 (consolidated)(As of September 30,2022)

32,101

120,5773,769△8,041397
5,059△4,272

5,457

Comprehensive income

27,829126,034（breakdown）
Comprehensive income attributable to owners of parent

27,829126,034

(Segment information, etc.)【Segment information】
I. Previous 2Q consolidated cumulative period (from April 1, 2021 to September 30, 2021)
Information concerning the sales amount and the amount of profit or loss per report segment(unit: thousand yen)Amountrecorded inquarterly
Adjusted
amountconsolidated
profit and loss
(Note) 1
statement(Note) 2

Report segment

Sales amount
1,859,997

Electronic /communication devicebusiness

Renewableenergybusiness

Total

2,256,459

－

－

－

－

－

Total

1,859,997

396,4622,256,459－

2,256,459

Segment profit or loss (△)

237,686

12,275249,961△193,263

56,698

Sales amount to externalclients
Internal sales amount ortransfer amount between
segments(Note)1. Adjustment amount of segment profit △193,263,000 yen is the profit and loss of the group management
division of △193,263,000 yen which has not been distributed to the business segment.
2. The segment profit is consistent with the operating profit in the quarterly consolidated income statement.
II. Current 2Q consolidated cumulative period (from April 1, 2021 to September 30, 2021)
Information concerning the sales amount and the amount of profit or loss per report segment(unit: thousand yen)Amountrecorded inquarterly
Adjusted
consolidated
amountprofit and loss
(Note) 1
statement(Note) 2

Report segment
Electronic /Renewablecommunicationenergy businessdevice business

Total

Sales amount
Mobile communication
infrastructure

547,867－

547,867－

547,867

Government office

410,437－

410,437－

410,437

Public project

354,170－

354,170－

354,170

342,523－

342,523－

342,523

Solar power plant－

1,051,182

1,051,182－

1,051,182

Wind power plant－

197,414

197,414－

197,414

1,654,998

1,248,597

2,903,595－

2,903,595

－

4,182

4,182

－

4,182

1,654,998

1,252,780

2,907,778－

2,907,778

－

－

－

－

－

1,654,998

1,252,780

2,907,778－

2,907,778

FA ・ Measurement ・
Other

Revenue from Contracts
with Customers
Other profit
Sales amount to externalclients
Between segments
Internal sales or transfer
amountTotal

Segment profit

268,748

125,418

394,166△204,194

189,972(Note)1. Adjustment amount of segment profit △204,194,000 yen is the profit and loss of the group management
division of △204,194,000 yen which has not been distributed to the business segment.
2. The segment profit is consistent with the operating profit in the quarterly consolidated income statement.
2. Matters concerning the change in the reporting segment, etc.
“Renewable energy system sales business” and “renewable energy power plant business” of the former reporting
segments have been combined and changed to the new title of “renewable energy business” since the first quarter
consolidated accounting period.
Our group distinguished the “renewable energy system sales business” of which main businesses are lot sales ofrenewable energy power plants including solar power and sales of the power generating system, and “renewable energy
power plant business” of which major business is power selling.

However, due to the opportunity of sellout of themegasolar power plants in the previous consolidated accounting year and the first quarter accumulative accounting period,
we changed our policy so that we can accelerate our efforts in the small wind power plants with high profitability andefficiency since the first quarter accumulative accounting period.

We combined our former “renewable energy systemsales business” and “renewable energy power plant business” in accordance with the management approach and theactual status of the businesses.
For the segment information of the second quarter accumulative accounting period of the previous year, the segment
prepared by categorization after the change is listed.
(Concerning revenue recognition)
The information of dissolution of the revenue arising from the contract with the client is as listed in “Notes (segment
information, etc.).”