Consolidated Financial Results for the Fiscal Year Ended March 31, 2014 (Based on J-GAAP)May 13, 2014
Company name: Tamagawa Holdings Co., Ltd.
Listing: JASDAQ (Tokyo Stock Exchange)
Stock Code:
6838
URL:
http://www.tmex.co.jp/
Representative:
Toru Masuzawa, President
Contact:
Akihiro Ushiroda, Manager
Tel: +81-3-6435-6933
Scheduled date of Annual General Meeting of Shareholders:June 27, 2014
Scheduled Commencement Date of Dividend Payout:—Scheduled date of filling Annual Securities Report:
June 27, 2014
Explanatory Documents Supplemental to the Abridged Financial Statements: YesResult Briefing: Yes (For institutional investors and analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2014 (April 1, 2013 – March 31, 2014)(1) Consolidated results of operations (full-year)(Percentages represent year-over-year changes)
Net sales
Million yen%FY 2014
4,171
13.6
FY 20133,671
18.2(Note) Comprehensive income (million yen):

Operating income
Ordinary income
Net income
Million yen% Million yen% Million yen
477
27.847827.6436373—374—339
FY 2014: 438 (26.9%)
FY 2013: 345 (—%)%
28.5
—Diluted net income
Ratio of ordinary income
Ratio of operating
Return on equityper shareto total assets
income to net sales
Yen
Yen%%%FY 2014
11.65
10.58
20.1
13.8
11.4
FY 2013
15.73
14.76
27.4
18.0
10.2
(Reference) Equity in earnings of affiliates (million yen):
FY 2014: —FY 2013: —(Note) On March 1, 2014, the Company executed a common stock split at the ratio of 3 shares to 1.
Net income per share and net income per diluted share are calculated under the assumption that the stock split took effect at thestart of the previous fiscal year.
Net income per share

Explanatory notes on consolidated financial results(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Million yen
Million yen%
Yen
FY 2014
4,210
2,638
62.5
64.77
FY 2013
2,709
1,750
63.4
54.28
(Reference) Shareholders’ equity (million yen):
FY 2014: 2,632
FY 2013: 1,718(Note) On March 1, 2014, the Company executed a common stock split at the ratio of 3 shares to 1.
Net assets per share is calculated under the assumption that the stock split took effect at the start of the previous fiscal year.

Explanatory notes on consolidated financial position(3) Consolidated cash flow position

FY 2014
FY 2013

Cash flows fromoperating activities
Million yen
764
35

Cash flows frominvesting activities
Million yen
(265)
(454)

Cash flows fromfinancing activities
Million yen
875
783

Cash and cash equivalents
at end of period
Million yen
1,763
389

2. Dividends
Dividends per share
1Q-endInterim

3Q-endYearendAnnualDividend payout
ratio(consolidated)Million yen%00.000.0

Total dividends(annual)

Yen
Yen
Yen
Yen
Yen
FY 2013
—0.00
—
0.00
0.00
FY 2014
—0.00
—0.00
0.00
FY 2015
———
1.00
1.00
9.15
(forecasts)(Note) Dividend distribution sources in fiscal year ending March 31, 2015 include the capital surplus.
For details, see the "Breakdown of dividend distribution from capital surplus," which appears later in this report.

Dividend onequity(consolidated)%
0.00.03. Consolidated Forecasts for the Fiscal Year Ending March 31, 2015 (April 1, 2014 – March 31, 2015)(Percentages represent year-over-year changes)

Net sales
1H (six months)
Full year

Million yen
2,092
4,534%
15.0
8.7

Operating income

Ordinary income

Million yen
201506

Million yen
196489%(6.2)
6.1%(10.2)
2.4

Net income
Million yen
128
450(1) Changes in significant subsidiaries during the fiscal year under review(changes in subsidiaries accompanying change in the scope of consolidation): None
New:
None (Company names:
Excluded: None (Company names:
Explanatory notes on changes in significant subsidiaries during the fiscal year under review(2) Changes in accounting principles, estimates and restatement
1) Changes in accounting principles caused by revision of accounting standards: None
2) Changes in accounting principles other than those mentioned above: None
3) Changes in accounting estimates: None
4) Restatement: None
Explanatory notes on changes in accounting principles, estimates and restatements(3) Number of shares issued and outstanding (shares of common stock)

Net income pershare%
Yen(32.8)
3.10
3.310.93))

1) Number of shares outstanding (includingFY 201441,259,000 shares
FY 201332,259,000 shares
treasury stock) at end of period
2) Number of treasury stock at end of period
FY 2014613,122 shares
FY 2013
610,479 shares
3) Average number of shares outstanding
FY 2014
37,468,446 shares
FY 2013
21,607,940 shares
during the period(Note) On March 1, 2014, the Company executed a common stock split at the ratio of 3 shares to 1.
The number of shares in this table is calculated under the assumption that the stock split took effect at the start of theprevious fiscal year.

Breakdown of dividend distribution from capital surplus
The breakdown of the portion of dividends to be distributed from capital surplus in fiscal year ending March 31, 2015is as follows.
Base dateYearend
Total
Cash dividends per share
1.00 yen
1.00 yen
Total dividends paid
41 million yen
41 million yen(Note) Net assets decrease by a factor of 0.016.

Tamagawa Holdings Co., Ltd. (6838) / Consolidated Financial Results for the Fiscal Year Ended March 31, 2014
(Based on J-GAAP)-1-Tamagawa Holdings Co., Ltd. (6838) / Consolidated Financial Results for the Fiscal Year Ended March 31, 2014
(Based on J-GAAP)

1. Results of Operations(1) Analysis regarding results of operations
The Japanese economy in the term under review, although overshadowed by weakness in Europe and concerns overstagnating emerging economies, displayed strengthening signs of improving domestic business amid growth
expectations inspired by a range of policy measures instituted by the new government, specifically accommodative
monetary policy steps, and attended by progressive weakening of the yen and rising share prices. However, conclusive
ripple effects in the real economy have yet to materialize, leaving the further outlook uncertain.
In this operating environment, the Group worked on strengthening business development in its main business lines inElectronics and Telecommunications Equipment Business operations, centered on markets related to 3.9G mobile
telecommunications equipment, defense, and wireless technology applications for public infrastructure and disasterprevention. In addition, demand from newly cultivated customers rose as a result of efforts to strengthen its value
proposition through business alliances in addition to activities under the themes of "value-added initiatives,""development of our own original products," and "expansion and cultivation of business areas." We have also started
ambitious initiatives to raise profits through operation improvements, while we continue to solidify our businessfoundation.
The Group's Solar Business Division operations (collectively meaning the Solar System Sales Business operations andSolar Power Plant Business operations; the same applies in the following.) experienced rising user interest in
renewable energy, especially regarding solar energy power generation, prompted by the enactment of the "Act onSpecial Measures concerning the Procurement of Renewable Electric Energy by Operators of Electric Utilities"(hereinafter, "Renewable Energy Special Measures Act").
As a result of the developments described in the foregoing, consolidated order receipts reached ¥4,340 million (up8.6% from the year-earlier period). Sales revenue totaled ¥4,171 million (up 13.6% from the year-earlier period).
Earnings increased compared with the year-earlier period, marking operating income of ¥477 million (up 27.8% fromthe year-earlier period), ordinary income of ¥478 million (up 27.6% from the year-earlier period), and net income forthe period of ¥436 million (up 28.5% from the year-earlier period).
The Electronics and Telecommunications Equipment Business saw stiff price competition in the telecommunications
infrastructure market—which is expected to only intensify—carry over from the previous year. Despite thisunfavorable trend, the mobile telecommunications sector is benefitting from increased facility investment due tomeasures by carriers to improve quality of service and to cover low reception areas. In the public works sector,
demand is rising driven by such factors as the government's supplemental budget and leading to expectations in thepublic infrastructure area that the wireless market will remain firm. Backed by this demand growth in the market for
telecommunications infrastructure, the Company will continue to expand its business terrain and strengthen its
operations improvement activities with a view to increase earnings.
In order to expand sales routes nationwide in Japan for the Group's Solar System Sales Business operations, internalframeworks will be put into place and sales and marketing activities will be further strengthened.
Moreover, Solar Power Plant Business operations will aim to provide at the Group-level stable power supply so as tocontribute to local communities and society at large. To this end, the Group will endeavor to create integrated
frameworks spanning the width from securing land for power plants to the initiation of electric power sales and in thisway promote earnings growth.
The board of directors convened on May 8, 2014, and resolved to enter into a business and capital alliance agreementwith Mr. Hikonobu Ise, Retail Branding Co. Ltd., and Mr. Yukihiro Akimoto, the President and Representative
Director of Retail Branding Co. Ltd. It was also resolved to issue equity warrants through third party allotment ofshares.
The Group intends to promote and expand its Solar Power Plant Business and foresees that it can secure the land use
rights for solar power plant sites from six related companies through Mr. Ise. The Group believes that the solar power
plant operations at these sites have a favorable outlook for profitability. The sites of interest consist of 27 locations in
10 prefectures and have a total land area of 1,419,964 m2. For these sites, we have applied to sell electricity at 36 yen
per kWh, have obtained certification from the Ministry of Economy, Trade and Industry (METI) for renewable energy
generation facilities, and have completed application concerning power sales to electric power companies. Solar power
plants which are planned for these sites will be able to generate a total of 76.5 MW, consisting under current
construction plans of 8.5 MW by March 2015 and an additional 68 MW by May 2016. There are 30 more sites forwhich application is pending with METI, through the certification application described above, for electric power salesat 32 yen per kWh.

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(Based on J-GAAP)

Results by business segment are described below.
1. Electronics and Telecommunications Equipment Business operations
Investment in base station facilities by mobile carriers has been rising, and public works investment in
defense-related facilities and public wireless facilities has also been increasing. As a result, new orders brought in¥3,495 million (up 7.3% from the year-earlier period) and net sales were ¥3,233 million (up 2.5% from theyear-earlier period). Segment income was ¥480 million (up 28.1% from the year-earlier period) with the help ofoperations improvement measures.
2. Solar System Sales Business operations
After the business went through an initial period of stagnation, orders for solar power plant system sales have steadily
picked up since the Renewable Energy Special Measures Act went into effect on July 1, 2012, and operation
efficiency measures were put in place at the same time. Results are still below plan, but the division was able toachieve profit again. As a result, order receipts posted ¥845 million (up 27.3% from the year-earlier period), sales
revenue reached ¥890 million (up 830% from the year-earlier period), with a segment income of ¥54 million (down
5.5% from the year-earlier period).
3. Solar Power Plant Business operations
Following the completion of the large-scale solar energy power plant under construction in Shimonoseki city,
Yamaguchi prefecture, power sales commenced in the third quarter. Revenue recognition for power sales generated
by the plant started in July 2013, but due to prior initial expenditures for other solar energy power plant projects
currently under way, a segment loss of ¥19 million (compared with a segment loss of ¥12 million in the year-earlierperiod) resulted on sales of ¥51 million (no sales revenues were recorded in the year-earlier period).
Power sales at the Shimonoseki solar energy power plant are developing to plan and earnings performance isexpected to be favorable.
(2) Analysis regarding financial position
Current assets
Consolidated current assets at the end of the period under review totaled ¥3,420 million (up 61.8% compared with theyear earlier). Main constituents were ¥1,763 million in cash and deposits, ¥1,112 million in sales accounts receivable,and ¥346 million in inventories.
Sales accounts receivable are mainly due from major telecommunications equipment manufacturers.
Non-current assets
Consolidated non-current assets at the end of the period under review totaled ¥787 million (up 33.0% compared withthe year earlier). Main constituents were ¥718 million in property, plant, and equipment and ¥38 million ininvestments and other non-current assets.
Current liabilities
Consolidated current liabilities at the end of the period under review totaled ¥1,129 million (up 59.7% compared withthe year earlier). Main constituents included ¥473 million in trade accounts payable and ¥303 million in short-termborrowings (includes current portion of long-term borrowings).
Non-current liabilities
Consolidated non-current liabilities at the end of the period under review totaled ¥441 million (up 75.8% comparedwith the year earlier). Main constituents included ¥60 million in corporate bonds, ¥234 million in long-term bankborrowings, and ¥132 million in retirement benefit provisions.
Net assets
Consolidated net assets at the end of the period under review totaled ¥2,638 million (up 50.7% compared with theyear earlier). Main constituents included ¥1,625 million in share capital, ¥1,619 million in capital surplus, and -¥554
million in retained losses.
2. Cash flows
Consolidated cash and cash equivalents (hereinafter, "cash") at the end of the year under review totaled ¥1,763
million, which was ¥1,374 million more than at the end of the previous fiscal year. Main factors included outflows
for the acquisition of property, plant, and equipment, together with inflows from the decrease in sales accounts
receivables, proceeds from long-term bank borrowings, and issuance of new shares.
Cash flows and relevant factors in the period under review are as follows:[Cash flows from operating activities]
Net cash provided by operating activities was ¥764 million (compared with ¥35 million provided by operating
activities in the year-earlier period). This was mainly due to income before income tax, etc., and higher sales
accounts receivable.
[Cash flows from investing activities]
Net cash used in investing activities was ¥265 million (compared with ¥454 million used in investing activities in theyear-earlier period). This was mainly due to expenditure for the acquisition of property, plant, and equipment.

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Tamagawa Holdings Co., Ltd. (6838) / Consolidated Financial Results for the Fiscal Year Ended March 31, 2014
(Based on J-GAAP)[Cash flows from financing activities]
Net cash provided by financing activities was ¥875 million (compared with ¥783 million provided by financing
activities in the year-earlier period). Main factors include inflows from proceeds of long-term bank borrowings andissuance of common shares.
(3) Basic policy concerning the distribution of profits and the dividends for the year under review and next fiscal
year
The payment of dividends by the Company is subject to a basic policy that applies a long-term perspective, gives fullconsideration to Company business results and the strengthening of corporate structures, and calls for payment of astable and continuous dividend.
The Company endeavors to make effective use of retained funds with a view toward developing future business andstrengthening the management basis, providing for rapid technical innovation, achieving continued stable growth, andmaking effective well-focused investments.
However, in consideration of the Group's business results for the past several years, the Company will not pay adividend for the current fiscal year.
For the following fiscal year, which ends on March 31, 2015, the Company plans to pay a dividend of 1.00 yen percommon share as a result of the improving business environment and the decision to foster a business structure inwhich a stable dividend can be realized.
The Company intends to make distinct improvement in raising profitability and strengthening corporate structures
through the concerted efforts of the entire company and endeavors to ensure as quickly as possible that profits can bereturned to Company shareholders.

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