FY2024 March The 2Q Summary of Accounting Statements[Japanese Standards] (consolidated)
November 10，2023
Listed company nameTamagawa Holdings Co., Ltd.

Tokyo
Code No.
6838
URL
https://www.tmex.co.jp
Representative(Title) President(Name) Toru Masuzawa
Contact person(Title) Finance & Accounting Manager (Name) Yasuhisa Masuda (TEL)
Quarterly report to be submitted：
November 10, 2023
Dividends payment to be started：
Preparation of supplementary explanation document for the quarterly accounting statement
Explanatory meeting for the quarterly accounting statement
Exchange

03-6435-6933
－
：No
：No

(amount under. mil yen rounded off))

1.Consolidated performance of FY 2023 Mar.: 2Q (from July 1, 2023 to September 30, 2023)(1) Consolidated management result (cumulative)(% indication: change compared with the same quarter of the previous year)

Sales amount

Quarterly profit
belonging to the parent
company’s shareholders
mil.yen%mil.yen
%
△270
－
△385
－
△364
－
△335
－
FY2023 Mar.1Q △313 mil.yen mil.yen (Operating profit

Ordinary profit

mil.yen%mil.yen
%
1,451
34.9
△268
－
1,075 △63.0△383－
FY2024 Mar. 2Q △309 mil.yen ( －％)FY2024 Mar. 2Q
FY2023 Mar. 2Q(Note) Comprehensiveprofit:

Quarterly net profit per
share after issuable
share adjustment
yen yenyen yen△62.66－△56.59－Quarterly net profit pershare
FY2024 Mar. 2Q
FY2023 Mar. 2Q(2) Consolidated financial status
Gross asset
FY2024 Mar. 2Q
FY2023 Mar. 2Q(Reference)Own capital:

Net asset

mil.yen
9,260
8,636
FY2024 Mar. 2Q 4,850 mil.yen

Own capital ratio

mil.yen
4,861
5,002
FY2023 Mar. 2Q

％

52.4
57.8
4,988 mil.yen

2. Status of dividends
Annual dividends
End 1Qyen yen

End 2QEnd 3Qyen yenTerm endyen

FY2023 Mar.
－
0.00
FY2024 Mar.
－
0.00
FY2024 Mar. (forecast)(Note)
Correction from the dividend forecast recently announced:

－
－
None

Total

yen yen

yen yen

5.00

5.00

0.00
(Note)

0.00

3. Consolidated performance forecast of FY 2024 Mar. (from July 1, 2023 to September. 30, 2024)(% indication: change compared with the same quarter of the previous year)
Sales amountmil. yen

Operating profit%

mil. yen

Ordinary profit%

Full business year
6,035 83.2
66－
(Note) Correction from the performance forecast recently announced:

mil. yen

Current net profit
Current net profit
belonging to the parent
per sharecompany’s shareholders
yen mil.
%mil. yen
%

7
－
None

yen

4

－

0.85

－％)

(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 standard, etc.

None：

② Change of the accounting standard except for ①

None：③ Change of the accounting estimate

None：④ Redisplay of revision

None：(Note)For details, see attached document P8. Quarterly Consolidated Financial Statements and Main

Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)”.
(4) Number of shares issued (ordinary shares)① Number of term-end shares issued
FY2024 Mar. 2Q

6,364,600shares

FY2023 Mar.

6,073,900 shares② Number of term-end own shares

FY2024 Mar. 2Q

61,508shares

FY2023 Mar.

61,508 shares③ Average number of midterm shares(quarterly accumulation)

FY2024 Mar. 2Q

6,152,954shares

FY2023 Mar.

5,935,028 shares(including own shares)**

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1. Qualitative information concerning the current quarterly financial statement(1) Explanation on the management result
After Covid-19 was redefined as Category V Infectious Disease, there has been mild recovery in the domestic
economy in the current second quarterly consolidated accumulative period, where recovery of sales has progressed in
the industries of eating-out, leisure, accommodation, department stores. Furthermore after June, rising wages, etc.
promoted consumption activities and normalization of economic activities has been accelerated. On the other hand,due to progress of weak yen and sharp gain of commodities prices which are simultaneously occurring, the economic
status continuously transits under the uncertain conditions.
Under such economic circumstances, for the electronic and communication device business, in addition to sales
expansion business mainly in the 5G related market and civil services/public related market, 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, terahertz products, etc. necessary for
wireless transmission of data of large volumes. We are also proactively working on the semiconductor manufacturing
facility market, etc.
In the mobile communication field, since the communication common carriers’ infrastructure investment wascontrolled, the demand for the existing products is decreasing. Therefore, we are aiming for and working on sales
expansion of infrastructure sharing related devices in the perspective of increasing demand for infrastructure sharing
as a method to expand infrastructure by reducing investment.
In regard to proposals for new clients related to mobile communication facilities for overseas, since various
restrictions due to Covid-19 have been gradually terminated, we are working on proposal activities to new clients on aremote basis and face-to-face basis.
In the public agency and public related market, the preharvest period of businesses has ended and this term is the
preparation period of new business. Along with a drastic increase of the national budget, we have experienced
continuous closing of received orders of large projects since the second half of last year. Additionally, probability oforder receipt of the current inquiries is also high although we will mainly work on development and design in this fiscal
year, which may limit contribution to sales amount of the current period, and we expect that those large and repeatedprojects will stably and continuously contribute to the performance after the following fiscal year.
Besides, we have won new businesses of drone monitoring device and private satellite project, etc.
Finally in the FA and measurement field, we received an order from a new client at the beginning of the term for thesemiconductor reliability test equipment. Since the semiconductor industry will be our country’s policy and investment
to advanced process will be more and more expanded hereafter, we will work on sales expansion to the semiconductor
facility market with our high frequency technology which is essential to semiconductors for communication.
By enhancing proposals of self-developed products along with active promotion of the business domain expansion,
we will continue the activities for profit expansion in order to establish the stable business base as the entire electronics
and communication device industry.
In the renewable energy business, we have continuously worked on acceleration of development of small wind power
plants.

In the current period, since there has been a global delay of procurement of the equipment in a number ofindustries, we increased the number of units for development by taking the measures such as advance procurement of
the equipment, etc.

In addition, as a result of diversification of fund procurement, 7 units of small wind power plants

were newly interconnected in this first quarterly consolidated accumulative period by executing multiple project finances
including sustainable loan, etc. We also sold 4 units of small wind power plants.
今We are also aiming to establish a new profit base by accelerating the approach to increase the number of thedeveloped units as well as promoting increase of the possessed units to secure stable profit by power selling. On theother hand, since inquiries are increasing for purchase of the small power wind plants by social demand for spreadingof renewable energy, we will consider sellout depending on the market environment.
In order for the stakeholders surrounding us to secure the precise profit structure and growth, we are aiming to build
the unique business model in the renewable energy business as a domestic company focusing on owning small wind
power plants from this period and expecting to launch various mechanism and structure reformations including theorganizations of the same business. Simultaneously, we will contribute to continuous reduction of greenhouse gas byeasing the business risk and accelerating development of new renewable energy sources with development of small
wind power plants of which unit is small size and risk dispersion and securement of profitability and mobility.
Tokyo Stock Exchange opened the carbon credit market on October 11, 2022 in view of contribution to carbon pricing
as a stock exchange in Japan with the result of verification experiment in 2022 to achieve the decarbonated society.
We will focus on it since establishment of a new “emission right trading” market is considered to contribute to further
expansion of renewable energy market.

As the result of the above, the amount of orders received in this second quarterly consolidated accumulative period was
2,093 mil. yen (6.2% increase compared with the same period of the previous year), and the sales amount was 1,451 mil.
yen (34.9% increase compared with the same period of the previous year). In terms of profit and loss, operating loss wasrecorded as 268 mil. yen (the operating loss of the same period of the previous year: 383 mil. yen), ordinary loss wasrecorded as 270 mil. yen (the ordinary loss of the same period of the previous year: 364 mil. yen) and the quarterly net
loss belonging to the parent company shareholders was 385 mil. yen (the quarterly’s net loss belonging to the parent
company shareholders of the same period of the previous year: 335 mil. yen) due to recording of 95 mil. yen of valuation
loss of investment securities.
In the electronic / communication device business, we will focus on acquirement of new businesses by setting oursales expansion activities of the mobile communication field (infrastructure sharing) public agency / public related
market which is expected to continue to transit steadily and where the demand is stably increasing as the center.
Furthermore, we will also proactively expand the business domain as well as continuing the activities for profit
expansion in order to establish the stable business base as the entire electronic and communication device businessby enhancement of proposals for self-developed products.
Our group is proactively considering development of the general environmental business in addition to the renewableenergy business not only as domestic expansion but also overseas expansion mainly in Southeast Asia, and will
actively conduct investment activities for expansion of the business operation. Our group will further work on CO2
reduction and the measures for global warming with all the Group employees and will proactively disclose information
to the stakeholders surrounding us for ESG management and will take a positive challenge to achieve SDGs goals.
Management results by segments are as follows.
a. Electronic and communication device businessFor electronic and communication device business, the order receipt from the public agencies and public related
continued to transit at a good rate and the amount of received order was 1,755 mil. yen (5.6% decrease comparedwith the same period of the previous year).
In terms of the sales amount, although we took measures for difficulty of the latest procurement of electronic parts,
etc., we could not avoid the impact where the sales concentrates in the second period compared to the plan of
beginning of the term, which was 1,147 mil. yen (19.2% increase compared with the same period of the previousyear). The segment loss was 43 mil. yen (segment loss was 106 mil. yen in the same period of the previous year).
In addition, the remaining received order was 3,687 mil. yen (48.1% increase compared with the same period of
the previous year) and the cause of increase of it is that the agreed delivery dates have been extended due to theglobally extended delivery dates of semiconductors and non-iron metal materials. Similarly, the inventory assets(parts and materials, products in process and product inventory) increased by 36% compared to the same periodof the previous year due to the extended agreed delivery dates.
b. Renewable energy system sales businessFor renewable energy business, we have worked on development of small wind power plants by leveraging
development fund of small wind power plants and collaborative loan and sustainable loan fund from banks. In
addition, the small wind power plants and low-voltage solar power plants we possess in Hokkaido and Tohoku are
selling power at a good rate.
In this second quarterly consolidated accumulative period, we newly interconnected 7 units of small wind power
plants. Additionally, since 4 small wind power plants could be sold, the sales amount increased compared to thesame period of the previous year. Furthermore, since the small wind power plants and low-voltage solar power
plants we possess are selling power at a good rate, the segment profit also increased.
As a result of the above, the amount of orders received was 338 mil. yen (200.0% increase compared with thesame period of the previous year), sales amount was 303 mil. yen (168.9% increase compared to the same periodof the previous year), and segment loss was 14 mil. yen (segment loss of the same period of the previous year:
34 mil. yen).

2.Consolidated financial statements and Notes(1)Consolidated balance sheet(In thousand yen)
FY 2023 (consolidated)(As of March 31,2023)

2Q FY 2024 (consolidated)(As of June 30,2023)

AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable - trade

1,055,068
1,371,660

1,130,218
1,068,968

Merchandise and finished goods
Goods and products

2,208,403
999,891

2,431,799
1,763,702

Work in proces
Raw materials and supplies

843,908
83,993872,266
81,742

Advance payments - trade
Other353,946△28,607287,660△29,925

Allowance for doubtful accounts

6,888,266

7,606,432

Accumulated depreciation

553,616△399,192

563,546△414,085

Buildings and structures, net

154,423

149,461

Machinery, equipment and vehicles

418,077△207,331

432,721△221,021

Non-current assets
Property, plant and equipment
Buildings and structures

Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
SoftwareOther

210,745

211,699

1,088,975

1,119,689△863,189△916,033

225,785

203,655

298,130

298,1300

14,051

889,085

876,997

5,539
51,5195,402
44,97900

Total intangible assets

57,05950,381

Investments and other assets
Investment securities

356,541

293,475

Long-term loans receivable
Deferred tax assets

50,000109,069

50,00092,539Other283,615

285,070

Allowance for doubtful accounts
Total non-current assets
Deferred assets
Stock issuance cost

799,226

721,085

1,745,371

1,648,464

1,984

5,073

opening expenses

671

716

Total deferred assets

2,656

5,790

8,636,293

9,260,687

Total assets

(In thousand yen)
FY 2023 (consolidated)(As of March 31,2023)

2Q FY 2024 (consolidated)(As of June 30,2023)

Liabilities
Current liabilities
Notes and accounts payable - tradeshort-term borrowing

591,995
270,332

455,421454,612

Short-term loans payable
Current portion of long-term loans payable

100,000
279,298

100,000
375,034

Lease obligations
Accounts payable - other

4,822
90,5754,860
129,939

Income taxes payable
Advances received

21,27567,51012,476
20,071

Provision for bonuses
Provision for product warranties

23,00947,981

18,431
40,272

Other
Total current liabilities

48,38672,25748,00262,294

1,617,444

1,721,418

1,566,520
8,810

2,217,195
6,447

Retirement benefit liability
Asset retirement obligations

277,579
13,127

279,986
13,127

Other

150,664

161,023

2,016,703

2,677,780

3,634,147

4,399,198

Capital stock
Capital surplus

2,535,100
1,692,213

2,635,889
1,762,940

Retained earnings
Treasury shares

790,618△61,394

405,023△61,394

Total shareholders' equity

4,956,537

4,742,458

Accounts payable - otherNon-current liabilities
Long-term loans payable
Lease obligations

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities△45,035△25,200

Foreign currency translation adjustment

77,159132,977

Accumulated other comprehensive income

32,124

107,777

11,767

9,528

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

1,716

1,724

5,002,146

4,861,488

8,636,293

9,260,687

(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)
FY 2023 (consolidated)(As of March 31,2023)

2Q FY 2024 (consolidated)(As of September 30,2023)

Net Sales
Cost of sales

1,075,761
793,721

1,451,046
1,071,245

Gross profit

282,039

379,801

Selling, general and administrative expenses

665,444648,574△383,404△268,773

2,514

728

Insurance income

290
4,440

246
712

Gain on forgiveness of debts
Other

57,591
5,638

11,523
12,484

Total non-operating income

70,47525,695

Operating profit (loss (△))
Non-operating income
Interest income
Dividend income

Non-operating expenses
Interest expenses

12,984

15,810Equity in losses of affiliates
Amortization of stock issuance expenses

2,140
10,387－
1,311

Non-operating payment fee
Share of loss of entities accounted for using equity
methodOther

18,900

－

5,811

8,243

1,220

1,813

Total non-operating expenses

51,443

27,178△364,372△270,257

45,000－Ordinary profit (loss (△))
special profit
Gain on sale of fixed assets
Total extraordinary profit
Gain on sale of fixed assets－

90

45,000

90

0
－

1,821
95,104Extraordinary loss
Loss on disposal of fixed assets
office relocation costs
Total extraordinary loss

8,139

－

Loss on disposal of fixed assets

8,139

96,925

Profit (loss (△)) before income taxes△327,512△367,092

Income taxes - current
Income taxes - deferred

7,385
970

2,115
16,378

Total income taxes

8,356

18,494△335,868△385,586－

8△335,868△385,594

Profit (loss (△))
Quarterly net income attributable to non-controllinginterests
Profit (loss (△)) attributable to non-controlling interests

Quarterly consolidated statements of comprehensive income
Consolidated first quarter period(In thousand yen)
FY 2023 (consolidated)(As of March 31,2023)
Profit (loss (△))
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income

2Q FY 2024 (consolidated)(As of September 30,2023)△335,868△385,586△59,852
82,113

19,83455,81722,26075,652Comprehensive income△313,608△309,933（breakdown）
Comprehensive income attributable to owners of parent
Quarterly comprehensive income attributable to noncontrolling interests△313,608△309,941－

8

(3) Notes for the quarterly consolidated financial statements(Notes for precondition of continuing company): NA
Ⅰ. Current 2Q consolidated cumulative period (from July 1, 2023 to September 30, 2023)
Information concerning the sales amount and the amount of profit or loss per report segment(unit: thousand yen)Amount recordedin quarterly
Adjusted amount consolidated(Note) 1
profit and loss
statement (Note)2

Report segment
Electronic /communication
device business

Renewableenergy business

Sales amount
Mobile communications
infrastructure
Government office331,487－

331,487－

331,487

202,933－

202,933－

202,933

Public project

229,580－

229,580－

229,580

FA・Measurement・Other

199,030－

199,030－

199,030－

80,59380,593－80,593－

26,59926,599－26,599963,032

107,1931,070,226－

1,070,226

－

5,535

5,535

－

5,535

963,032

112,728

1,075,761－

1,075,761

－

－

－

－

－

963,032

112,728

1,075,761－

1,075,761

Solar power plant
Wind power plant
Revenue from Contracts with
Customers
Other profit
Sales amount to external clients
Between segments
Internal sales or transfer amount
Total

Total

Segment profit△106,331△34,881△141,213△242,191△383,404(Note) 1. (1) Adjustment amount of segment loss (△) △242,191 thousand yen is the fee △242,191 thousand yen of
the group management department which is not distributed to the business segment.
2. Segment loss (△) matches the operating loss in the quarterly consolidated profit and loss statement.
Ⅱ. Current 2Q consolidated cumulative period (from July 1, 2023 to September 30, 2023)
Information concerning the sales amount and the amount of profit or loss per report segment(unit: thousand yen)Amount recordedin quarterly
Adjusted amount consolidated(Note) 1
profit and loss
statement (Note)2

Report segment
Electronic /communication
device business

Renewableenergy business

Sales amount
Mobile communications
infrastructure
Government office468,782－

468,782－

468,782

180,367－

180,367－

180,367

Public project

282,968－

282,968－

282,968

FA・Measurement・Other

215,764－

215,764－

215,764

Solar power plant
Wind power plant
Revenue from Contracts with
Customers
Other profit
Sales amount to external clients
Between segments
Internal sales or transfer amount
Total
Segment profit

Total

－

83,991

83,991－

83,991－

213,098

213,098－

213,098

1,147,882

297,090

1,444,973－

1,444,973

－

6,073

6,073

－

6,073

1,147,882

303,163

1,451,046－

1,451,046

－

－

－

－

－

1,147,882

303,163

1,451,046－

1,451,046△43,872△14,237△58,110△210,663△268,773

(Note) 1. (1) Adjustment amount of segment profit or loss (△) △210,663 thousand yen is the fee △210,663 thousand
yen of the group management department which is not distributed to the business segment.
2. Segment profit or loss (△) matches the operating loss in the quarterly consolidated profit and loss statement.
(Profit recognition related)
Information which dissolves the profit arising from the agreement with the clients is as described in “Note (segment
information, etc.).”