FY Mar. 2019

Summary of Accounting Statements [Japanese Standards] (consolidated)
May 20, 2019

Listed company nameTamagawa Holdings Co., Ltd.

Code No.

6838

Representative
Contact person(Title)(Title)ExchangeTokyo

URL http://www.tmex.co.jp
President
Director(Name)(Name)

Ordinary shareholders’ meeting to be held: June 27, 2019
Securities report to be submitted:
June 27, 2019

Toru Masuzawa
Keita Masuyama

:

Yes

(

For institutional investors / analysts )mil. yen

3,841
3,255

(Note) Comprehensive profit

Operating profit％

mil. yen％mil. yen

153
53

%

mil. yen

18.0
△26.7

%

187.7
△71.9

△79
△63

－
－

128
△146

－
－

FY Mar. 2019

Current net profit pershare

131 mil. yen (－ %)Current net profit per share after
dilutive share adjustment

yen

FY Mar. 2019
FY Mar. 2018

(amount under mil. yen rounded off)(% indication: change compared with the same quarter of the previous year)
Current net profit attributable to theOrdinary profit
parent company’s shareholders

Sales amountFY Mar. 2019
FY Mar. 2018

June 28, 2019

: Yes

1. Consolidated performance of FY Mar. 2019 (from Apr 1, 2018 to Mar 31, 2019)(1) Consolidated management result03-6435-6933

Dividends payment to be started:

Preparation of supplementary explanation document for the accounting statement
Explanatory meeting for the accounting statement(TEL)

FY Mar. 2018

Current net profit ratio ofown capital

yen

29.58
△34.8529.35－(Reference) Investment profit on equity method

FY Mar. 2019△12 mil. yen△150 mil. yen (Ordinary margin ofgross asset－ %)Operating margin ofsales amount

％

％

％

3.9
△4.5

△0.8
△0.7

4.0
1.6

FY Mar. 2018

△5 mil. yen

We conducted reverse split with ratio of 1 share per 10 ordinary shares on October 1, 2018. Current net profit per share is
calculated with assumption that the reverse split was conducted at the beginning of the previous accounting year.
(2) Consolidated financial status

Gross asset

Net asset
mil. yen

FY Mar. 2019
FY Mar. 2018

9,572
11,178(Reference) Own capital

Capital ratio
mil. yen

3,368
3,210

FY Mar. 2019

Net asset per share
yen

％

35.1
28.7

3,364 mil. yen

762.11738.90FY Mar. 2018

3,209 mil. yen

We conducted reverse split with ratio of 1 share per 10 ordinary shares on October 1, 2018. Net asset per share is
calculated with assumption that the reverse split was conducted at the beginning of the previous accounting year.
(3) Consolidated cashflow status
Cashflow by sales activities

Cashflow by investment activities

mil. yen

FY Mar. 2019
FY Mar. 2018

499
△534

2. Status of dividend

mil. yenmil. yen928△823△2,123934

Annual dividend
End 1QFY Mar. 2018
FY Mar. 2019
FY Mar. 2020
(forecast)yen

End 2Q
yen

－
－

0.00
0.00

－

0.00

End 3Qyen－－－

Term end

Cashflow by financial activities

Total dividend(Total)

Total

yen

yen

0.50
5.00
5.00
～30.00

0.50
5.00
－

Term-end balance of cash and cashequivalentmil. yen

1,026
1,718

Dividend tendency(Consolidated)mil. yen

21
22

Net asset dividend rate
(Consolidated)

％

％

－
16.90

0.66
0.67

－

(Note） 1. Capital surplus is included in the dividend resource of FY Mar. 2018 and FY Mar. 2019.
See “Breakdown of dividend with capital surplus as dividend” for detail.
2. Dividend tendency is not stated in the dividend forecast for FY Mar. 2020 because it is disclosed in the range form.
3. We conducted reverse split with ratio of 1 share per 10 ordinary shares on October 1, 2018. The amount of term-end dividends per share of FY Mar. 2020 (forecast) is listed in consideration of effect of such reverse split.

―1―3. Consolidated performance forecast of FY Mar. 2020 (from Apr 1, 2019 to Mar 31, 2020)(% indication: change compared with the same quarter of the previous year)
Current net profit attributable toCurrent net profit per
Operating profit
Ordinary profit
the parent company’s
shareshareholders

Sales amountFull year

mil. yen

5,699

％

48.4

mil. yen

524

％

242.2

mil. yen

372

―2―

％

－

mil. yen

319

％

148.7

yen

73.58

*Notes(1) Material transfer of subsidiary during the term (Transfer of the specific subsidiary with change of scope of: No
consolidation)
Number of new(Company
Number of excluded(Company－－
companies
name)companies
name)(2) Change of accounting policy / change of accounting estimate / redisplay of correction① Change of accounting policy along with revision of the accounting standards, etc.

: No

② Change of accounting policy other than ①: No③ Change of accounting estimate: No④ Redisplay of correction: No(3) Number of shares issued (ordinary shares)① Number of term-end shares issued (including own
shares)FY Mar. 2019

4,476,100 shares FY Mar. 2018

4,404,600 shares② Number of term-end own shares

FY Mar. 201961,454 shares FY Mar. 2018

61,454 shares③ Average number of midterm shares (quarterly
accumulation)

FY Mar. 2019

4,345,626 shares FY Mar. 2018

4,208,445 shares

We conducted reverse split with ratio of 1 share per 10 ordinary shares on October 1, 2018. Number of term-end shares,
Number of term-end own shares and Average number of midterm shares are calculated with assumption that the reverse spli
was conducted at the beginning of the previous accounting year.
(Reference) Outline of individual performance
Individual performance of FY Mar. 2019 (Apr. 1, 2018 ~ Mar. 31, 2019)(1) Individual management result(% indication: change compared with the same quarter of the previous year)

Sales amountOperating profit

mil. yen

183
203

FY Mar. 2019
FY Mar. 2018％

mil. yen

△10.1
△37.3

△84
△67

-

Current net profit per share

Current net profit per shareafter dilutive share adjustment

yen

yen

FY Mar. 2019mil. yen△69△71

mil. yen

％

-

％

-

△79
△108

-

△18.40△25.70FY Mar. 2018

Current net profit

Ordinary profit％

We conducted reverse split with ratio of 1 share per 10 ordinary shares on October 1, 2018. Current net profit per share is
calculated with assumption that the reverse split was conducted at the beginning of the previous accounting year.
(2) Individual financial status
Gross asset

Net asset
mil. yen

FY Mar. 2019
FY Mar. 2018

(Reference)

Own capitalmil. yen

3,428
3,855

FY Mar. 2019

Capital ratio
％

2,623
2,681

2,619 mil. yen

Net asset per share

76.4
69.5
FY Mar. 2018yen593.33617.222,680 mil. yen

We conducted reverse split with ratio of 1 share per 10 ordinary shares on October 1, 2018. Net asset per share is
calculated with assumption that the reverse split was conducted at the beginning of the previous accounting year.
* The summary of accounting statement is exempted from audit by certified public accountant or auditing firm.
* Explanation on appropriate use of the performance forecast and other special notes
The statement concerning the future such as performance forecast, etc. described herein is based on the information we have currently
obtained and a certain precondition judged as reasonable, and the actual performance, etc. may be greatly different due to various
factors. See the attached document p.5 “1. Outlook of management result, etc.”.

―3―

Breakdown of dividend with the capital surplus as capital resource
Breakdown of dividend with the capital surplus as capital resource among the dividend of FY March 2019 is as follows.
Record dateTerm-end

Total

Dividend per share

5.00 yen

5.00 yen

Total dividend amount

22 mil. yen

22 mil. yen(Note) Net asset reduction rate: 0.008―4―

1. Overview of management result, etc.
(1) Overview of the current management result
Matters herein concerning the future were determined by our group (us and our consolidated subsidiaries) as of the
final day of the current consolidated accounting year.
While the Japanese economics in the current consolidated accounting year continues to be in the mild turnaroundsuch as recovery of individual consumption and facility investment thanks to continuous improvement in the corporate
performance and employment situation, it continued to shift with uncertain future due to trade conflict arising from thetrading policy of US and impact of series of natural disasters in various areas of Japan, etc.
Under such economic circumstances, for the electronic and communication device business, in addition to sales
expansion business mainly in the fourth-generation mobile phone equipment related market and public related market,
we have also focused on 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 of business 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 of various business-use wireless, digital signal processor, etc.
indispensable for high-speed signal processing, millimeter wave band products, etc. necessary for wirelesstransmission of data of large volumes.
In the mobile communication field, while amount of facility investment of each carrier has been reduced year by year,
demands in IBS (industrialized building system) is recovering. Additionally, mobile communication facility related field
for overseas is acquiring more inquiries from new clients little by little.
Demands for the optical transmission device, digital signal processor, etc. are increasing for disaster measures,
business-use wireless and surveillance system in the public filed, and therefore we will work on further demand
expansion in the public filed as well as positively working on self-developed products including product development
for the fifth-generation mobile communication related market.
Order receipt condition in general is improving, and we will continue to promote expansion of our group’s businessfield and also continue the activities for profit expansion by proposal and enhancement of self-development products.
We have actively promoted development and sales of the photovoltaic power plants and small wind power plants
especially among the renewable energy system sales business. Considerable amount of period is still required forcompletion of the certification procedures, but the procedures for the cases which filed application since last year havebeen completed and accordingly inquiries from new clients are increasing little by little. We will continue thedevelopment / sales activities of photovoltaic power plants, small wind power plants, etc. for profit expansion.
In the renewable power plant business, each of the already-operating photovoltaic power plants has been selling
power at a good rate, and the mega solar power plant in Goto City, Nagasaki Pref. and the solar sharing plants in
Shimada City, Shizuoka Pref., and the mega solar power plant in Noboribetsu City, Hokkaido are engaged in power
selling more in full scale since the previous term. On the other hand, we assigned Kamo Power Plant in Kasumigaura
City owned by our group as of December 3, 2018, and Sodegaura Hayashi Power Plant as of March 29, 2019.
As the result of the above, the amount of orders received in the current consolidated accounting year was 3,448 mil.
yen (7.3% decrease compared with the same term of the previous year), and the sales amount was 3,841 mil. yen(18.0% increase compared with the same term of the previous year). In terms of profit and loss, operating income
was 153 mil. yen (187.7% increase compared with the same term of the previous year), ordinary loss was 79 mil yen(ordinary loss of the same term of the previous year: 63 mil. yen), and the current net profit belonging to the parent
company shareholders was 128 mil. yen (quarterly net loss belonging to the parent company shareholders of the same
term of the previous year: 146 mil. yen).
For the electronic and communication device business, in addition to sales expansion activities mainly in the public
related market, we are focusing on exploration of new clients. Especially in the civil service field, the demands arestably increasing and it is expected to shift steadily hereafter. We will continue to promote expansion of our group’sbusiness fields and also continue the activities for profit expansion by enhancement of proposal of self-developed
products.
For the renewable energy plant business, we entered into the memorandum on January 25, 2019 concerningbusiness cooperation for wind power plant business with AURA-Green Energy who secures the power selling right ofsmall wind power generation in Hokkaido and Aomori Pref. The details of this memorandum are that ①AURA-Green
Energy shall assign the power selling right of wind power generation and the land to be used for the business to SPC
organized or founded by us, ②both companies shall jointly invest to the investment portion of SPC, ③both companies
shall aim for commencement of power selling at 150 wind power plants within three years since the conclusion dateof the Memorandum, ④we shall issue share acquisition rights to the president of AURA-Green Energy, ⑤we shall beobligated to make effort for procurement by debt including loan, etc. of SPC. We consider that we can contribute to
our group’s future profit by processing construction of the small wind power plants under the Memorandum as muchas possible.
Through these efforts, we will continuously endeavor not only to reduce CO2, but also to contribute to the communityand society and to introduce, spread and promote renewable energy by taking advantage of characteristics of thecommunity, and accelerating development of community-based renewable energy―5―Management result status by business type segments is as follows.
Classification of the report segments was changed at the beginning of term of the current consolidated accounting
year. The following is comparison of the value of the same term of the previous year with the value after changing to
the segment classification after change.
a. Electronic / communication device business
As the result that expansion of order receipt in the mobile communication field, civil service and public related
field has been focused on, and that improvement of operational efficiency has been promoted, the amount oforders received was 3,196 mil. yen (28.2% increase compared with the same term of the previous year), sales
amount was 2,854 mil. yen (8.7% increase compared with the same term of the previous year), and segment loss
was 221 mil. yen (1.5% decrease compared with the same term of the previous year).
b. Renewable energy system sales businessAlthough it requires a considerable amount of period for completion of certification procedures by the revised FIT
Act, as the result that lot selling of photovoltaic power plant and others has been focused on, the amount of orders
received was 252 mil. yen (79.4% decrease compared with the same term of the previous year), sales amountwas 394 mil. yen (42.1% increase compared with the same term of the previous year), and segment loss was 83
mil. yen (segment loss of the same term of the previous year was 108 mil. yen).
c. Renewable energy plant business
Each of the already-operating photovoltaic power plants has been selling power at a good rate, and the mega
solar power plant in Goto City, Nagasaki Pref. and the solar sharing plants in Shimada City, Shizuoka Pref. areengaged in power selling more in full scale since the current term. In addition, power selling at the mega solar
power plant in Noboribetsu City, Hokkaido started on November 2, 2018. As a result, the sales amount was 615
mil. yen (78.2% increase compared with the same term of the previous year) and segment profit was 177 mil. yen(75.0% increase compared with the same term of the previous year).

―6―

Consolidated financial statements and Notes
Consolidated balance sheet(In thousand yen)
FY2017(consolidated)(As of March 31,2018)

FY2018(consolidated)(As of March 31,2019)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

1,718,000
1,377,764

1,026,668
1,535,070

Merchandise and finished goods
Work in process

157,216
176,416

1,616,585
878,670

Raw materials and supplies
Advance payments - trade

135,063
582,049

185,023
75,543

Other
Allowance for doubtful accounts

525,287-

Total current assets

4,671,798

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net

452,374

512,094△331,934△375,919△237,289△587,760△643,663

5,392,318

Accumulated depreciation
Machinery, equipment and vehicles, net

5,016,399

Tools, furniture and fixtures

665,628

Accumulated depreciation
Tools, furniture and fixtures, net

77,868Land
Construction in progress

382,049
45,326

Total property, plant and equipment

5,627,664△322,700
129,673

Machinery, equipment and vehicles

324,495△14,392

180,160

2,575,930
2,338,641
795,941
152,277
387,466
17,5405,651,317

3,076,086

Intangible assets
Goodwill

207,554

39,614

SoftwareOther

66,320048,2050Total intangible assets

273,875

87,820Investments and other assets
Investment securities

26,172

22,152Long-term loans receivable
Deferred tax assets

103,809132,765

45,761
187,140

Other
Allowance for doubtful accounts

300,557

506,398△8,700△8,700Total investments and other assets

554,605

752,754

6,479,798

3,916,660

911
129

4,909
100

Business commencement expenses

26,10823,335

Total deferred assets

27,14928,345

11,178,746

9,572,670

Total non-current assets
Deferred assets
Share issuance cost
Development expenses

Total assets―7―

(In thousand yen)
FY2017(consolidated)(As of March 31,2018)

FY2018(consolidated)(As of March 31,2019)

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

411,372
461,800

503,108
50,000Current portion of long-term loans payable
Lease obligations

733,551
201,494

464,982
179,152

Accounts payable - other
Income taxes payable

164,435
13,437

151,932
59,636

Advances received
Provision for bonuses

238,622
66,637444,000
114,905

Provision for product warranties
Other

12,51986,26914,257
213,953

2,390,139

2,195,928

Long-term loans payable
Lease obligations

523,261
3,625,902

231,415
3,132,673

Deferred tax liabilities
Net defined benefit liability

1,049
176,616

2,501
187,940

55,0481,190,558

35,193416,612

6,013

1,882

5,578,449

4,008,218

7,968,589

6,204,146

1,748,137
1,065,087

1,770,627
1,065,912

466,480595,043△61,3133,370,270

Total current liabilities
Non-current liabilities

Asset retirement obligations
Long-term accounts payable - other
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity

3,218,392

Accumulated other comprehensive income

3,543

Valuation difference on available-for-sale securities

Foreign currency translation adjustment
Accumulated other comprehensive income△5,085

3,210,156

3,368,524

11,178,746

9,572,670

994

Total net assets
Total liabilities and net assets

―8―

△724

△12,774△9,230Share acquisition rights△61,313△5,8104,064

Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income

Net sales
Cost of sales

FY2017(From April 1,2017 to
December 31,2018)
3,255,443
2,236,505(In thousand yen)
FY2018(From April 1,2018 to
December 31,2019)
3,841,699
2,603,190

Gross profit

1,018,937

1,238,509

Selling, general and administrative expenses

965,697

1,085,341

Operating profit

53,240153,167

Non-operating income
Interest income

8,792

6,799

Dividend income
Insurance income

1,142
2,764

807
3,185

Other

5,704

11,203

Total non-operating income

18,403

21,996112,471
9,423

232,766
824

5,172
8,328

12,6328,321

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

Other
Total non-operating expenses
Ordinary profit (loss)（△）
Extraordinary income
Gain on sales of non-current assets
Other

135,396

254,545△63,752△79,380

2,784

239,3800110,006

424
8,567

2,762
22

Total extraordinary income

239,380－

Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Other
Total extraordinary losses
Profit (loss) before income taxes（△）
Income taxes - current
Income taxes - deferred
Total income taxes

12-

110,019

8,992△170,986

151,006

11,57074,387△35,871△51,944－－△146,686

128,563△24,300

Profit (loss)（△）△146,686

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent（△）―9―22,443

128,563

Consolidated statement of comprehensive income
FY2017(From April 1,2017 to
December 31,2018)
Profit (loss)（△）
Other comprehensive income△146,686
3,214

Valuation difference on available-for-sale securities

Foreign currency translation adjustment△7,168

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests―10―△4,2687,688
3,420△3,953

131,983△150,639-

131,983-△150,639（detail）(In thousand yen)
FY2018(From April 1,2018 to
December 31,2019)
128,563

Information regarding net sales, income or loss, assets, liabilities, and other items for each reportable segment.
FY2017 (April 1, 2017 -March 31, 2018)(In thousand yen)
Reportable Segment
Electronic/
Renewable
CommuniEnergy System
cation Device
Sales BusinessBusiness

Renewableenergy plantbusiness

Adjustment
amount(Note1)

Total

Value
presented inconsolidated
financialstatements

Net Sales
Sales to external customers

2,626,727

277,739

345,608

3,250,075

5,368

3,255,443

Internal sales or Transfers
between segments

―

―

―

―

―

―

Total

2,626,727

277,739

345,608

3,250,075

5,368

3,255,443

Segment income(loss)

225,035

101,262

217,908

3,004,660

1,074,833

6,534,353

10,613,847△164,668

53,240

Segment assets△108,389

564,898

11,178,746

85,407

6,879

147,876

240,163

3,192

243,356

Equity in loss of affiliates

―

―

―

―

110,006△5,172―

Impairment Loss

△5,172110,006―△5,172110,006――

103,809103,809―103,80980,481

2,012

4,362,450

4,444,944

7,783

4,452,727

Other items
Depreciation

Investment for affiliatedcompany accounted for by
the equity-method
Increase in property, plantand equipment andintangible assets(Note) 1. (1) Adjustment amount of △164,668 thousand yen of segment profit or loss (△) is 6,392 thousand yen of
unrealized profit, etc., △97,000 thousand yen of adjustment amount of dividends from the consolidated
subsidiaries and △74,060 thousand yen of profit and loss of Group Management Division not allocated tobusiness segments.
(2) Adjustment amount of segment asset of 564,898 thousand yen is 578,009 thousand yen of GroupManagement Division asset not allocated to business segments and △13,111 thousand yen of transaction
elimination, etc. between segments.
2. Adjustment is made with operating profit in the consolidated financial statement for segment profit or loss (△).

―11―

FY2018 (April 1, 2018 -March 31, 2019)(In thousand yen)
Reportable Segment
Electronic/
Renewable
CommuniEnergy System
cation Device
Sales BusinessBusiness

Renewableenergy plantbusiness

Total

Adjustment
amount(Note1)

Value
presented inconsolidated
financialstatements

Net Sales
Sales to external customers

2,854,416

366,457

615,819

3,836,694

5,004

3,841,699

Internal sales or Transfers
between segments―

28,126―28,126―

Total

2,854,416

394,584

615,8193,864,821△28,126

Segment income(loss)

221,696

177,213315,285

Segment assets

3,260,780△83,624

2,296,613

3,816,736

106,5635,001

Equity in loss of affiliates――

Impairment Loss―――
241,946△23,121

3,841,699

9,374,130△162,117

198,540

9,572,670

309,451

421,016

1,994

423,010△12,632△12,632

―

8,567

―

△12,632―

45,76145,761―45,761―

193,484

435,431―435,431

153,167

Other items
Depreciation

Investment for affiliatedcompany accounted for by
the equity-method
Increase in property, plantand equipment andintangible assets

8,567

8,567

(Note) 1. (1) Adjustment amount of △162,117 thousand yen of segment profit or loss (△) is 6,961 thousand yen of
unrealized profit, etc., △70,000 thousand yen of adjustment amount of dividends from the consolidated
subsidiaries, △6,000 thousand yen of transaction elimination, etc. between segments and △93,079
thousand yen of profit and loss of Group Management Division not allocated to business segments.
(2) Adjustment amount of segment asset of 198,540 thousand yen is 202,199 thousand yen of GroupManagement Division asset not allocated to business segments and △3,658 thousand yen of transaction
elimination, etc. between segments.
2. Adjustment is made with operating profit in the consolidated financial statement for segment profit or loss (△).

―12―