FY2020 March The 2Q Summary of Accounting Statements[Japanese Standards] (consolidated)
Listed company nameTamagawa Holdings Co., Ltd.

Exchange

Code No.
Representative

November 14, 2019Tokyohttps://www.tmex.co.jp
Toru Masuzawa

6838
URL
(Title) President(Name)
Finance and accounting division
Contact person(Title)(Name) Hironori Honjo(TEL)
manager
Quarterly report to be submitted：
November. 14, 2019
Dividends payment to be started：
Preparation of supplementary explanation document for the quarterly accounting statement
Explanatory meeting for the quarterly accounting statement

03-6435-6933
－
：Yes
：Yes

(amount under. mil yen rounded off))

1.Consolidated performance of FY 2020 Mar.: 2Q (from Apr 1, 2019 to Sep. 30, 2019)(1) Consolidated management result (cumulative)

Sales amountmil.yen(% indication: change compared with the same quarter of the previous year)
Quarterly profit
belonging to the
Operating profit
Ordinary profit
parent company’s
shareholders%

mil.yenFY2020 Mar. 2Q
2,469
49.1
FY2019 Mar. 2Q
1,655
27.0
(Note) Comprehensive profit: FY2020 Mar. 2Q%

mil.yen331 1,938.1
244
16
－
△84
117mil.yen(－%) FY2019 Mar.2Q
Quarterly net profit per
Quarterly net profit per
share after issuable
share
share adjustment
yen

FY2020 Mar. 2Q
FY2019 Mar. 2Q%

mil.yen

%

127
－
－
－
△94
－
△80mil.yen( －%)

yen

28.51
△21.8625.36－(2) Consolidated financial status
Gross asset

Net asset
mil.yenFY2020 Mar. 2Q
9,476
FY2019 Mar.
9,572
(Reference)
Own capital: FY2020 Mar. 2Q
3,530mil yen

2. Status of dividends

Own capital ratio
mil.yen

%

3,534
3,368
FY2019 Mar.

37.3
35.2
3,364mil. yen

Annual dividends
End 1QEnd 2Qyen

FY2019 Mar.
FY2020 Mar.

End 3Q
yen

0.00

－
－

FY2020 Mar. (forecast)

Term endyen

0.00(Note) Correction from the dividend forecast recently announced:

Total
yen

yen

－

5.00

5.00

－

5.00
～30.005.00～30.00None

3. Consolidated performance forecast of 2020 Mar. (from Apr 1, 2019 to Mar. 31, 2020)(% indication: change compared with the same quarter of the previous year)
Sales amountmil. yen

Operating profit%

mil. yen%

Full business year
5,699
48.4
524
242.2
(Note) Correction from the performance forecast recently announced:―1―

Ordinary profit
mil. yen

%

372

－
None

Current net profit
belonging to theparent company’s
shareholders
mil. yen

319

%

148.7

Current net profit per
share
yen

73.58

※ 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 standard, etc.
： None② Change of the accounting standard except for ①： None③ Change of the accounting estimate： None④ Redisplay of revision： None(4) Number of shares issued (ordinary shares)① Number of term-end shares issued(including own shares)② Number of term-end own shares③ Average number of midterm shares(quarterly accumulation)**

FY2020 Mar. 2Q

4,582,000 shares

FY2019 Mar.

4,476,100 shares

FY2020 Mar. 2Q

61,454 shares

FY2019 Mar.

61,454 shares

FY2020 Mar. 2Q

4,465,279 shares

FY2019 Mar. 2Q

4,343,146 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
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 Annex (3) “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.

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1. Qualitative information concerning the current quarterly financial statement(1) Explanation on management result
Matters herein concerning the future were determined by our group as of the final day of the current consolidated
accounting year.
While the Japanese economics in the current second quarter consolidated cumulative accounting year continues to bein the mild turnaround such 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 situation
due to the impacts on the global economics given by trend of the trading issues and future of Chinese economics, anduncertainty in the policies.
Under such economic circumstances, for the electronic and communication device business, in addition to sales
expansion business mainly in the fifth-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 used for 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, inquiries of high-frequency components are increasing for the fifth-generation
mobile communication system which will start its commercial services in 2020.
In addition, inquiry cases from new clients related to mobile communication facilities for overseas are gradually
increasing.
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 electronic and communication device business is increasing compared to theprevious term, and we will continue to promote expansion of our group’s business field and also continue the activities
for profit expansion by proposal and enhancement of self-development products.
We have promoted development and sales of the photovoltaic power plants and small wind power plants in the
renewable energy system sales business. We will continue the development / 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. In addition, by generally judging that we can plan to invest for the next business expansion,
we sold out Shimonoseki Toyoura-cho photovoltaic plant in September 2019. Our group is actively reviewing thegeneral renewable energy and environmental businesses which will become our next pillar for expansion ofoperations of such businesses.
As the result of the above, the amount of orders received in the current second quarter consolidated cumulative period
was 2,232 mil. yen (25.7% increase compared with the same term of the previous year), and the sales amount was
2,469 mil. yen (49.1% increase compared with the same term of the previous year). In terms of profit and loss,
operating profit was 331 mil. yen (1,938.1% increase compared with the same term of the previous year ), ordinary
profit was 244 mil. yen (ordinary loss of the same term of the previous year: 94 mil. yen), and the quarterly net loss
belonging to the parent company shareholders was 127 mil. yen (quarterly net profit belonging to the parent company
shareholders of the same term of the previous year: 94 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―3―

products.
For the renewable energy plant business, in addition to development / sales of photovoltaic power plants, we are
actively engaged in development of small wind power plants. We will continuously endeavor not only to reduce
CO2, but also to contribute to the community and society and to introduce, spread and promote renewable energy bytaking advantage of characteristics of the community, and accelerating development of community-based renewableenergyManagement result status by business type segments is as follows.
a. Electronic / communication device business
Thanks to focus on expansion of order receipt in the mobile communication filed and civil service and public related
field, the amount of orders received was 2,187 mil. yen (30.0% increase compared with the same term of the previousyear), sales amount was 1,407 mil. yen (35.9% increase compared with the same term of the previous year), andsegment profit was 84 mil. yen (segment loss of the same term of the previous year: 31 mil. yen).
b. Renewable energy system sales businessAlthough we are focusing on lot selling of mainly photovoltaic power plants, due to decrease of demand for cases ofphotovoltaic power generation according to reduction of the fixed purchase price and amended FIT law, the amountof orders received was 44 mil. yen (52.2% decrease compared with the same term of the previous year), sales amountwas 83 mil. yen (67.7% decrease compared to the same term of the previous year), and segment loss was 85 mil. yen(segment loss of the same term of the previous year: 15 mil. yen).
c. Renewable energy plant business
Each of the already-operating photovoltaic power plants in Shimonoseki City and Tateyama City, and the mega solar
power plants in Goto City, Nagasaki Pref. and the solar sharing plants in Shimada City, Shizuoka Pref. have been
selling power at a good rate. In addition, since we sold out Shimonoseki Toyoura-cho photovoltaic plant in
September 2019 by generally judging that we can plan to invest for the next business expansion, the sales amountwas 971 mil. yen (155.8% increase compared with the same term of the previous year) and segment profit was 421
mil. yen (181.4% increase compared with the same term of the previous year).
(2) Explanation on financial status① Analysis of financial status(Gross assets)
Gross assets in the end of the current second quarter consolidated accounting period resulted in 9,476 mil. yen,decreasing by 95 mil. yen compared to the end of the previous consolidated accounting year.
This is mainly because bills receivables and accounts receivable, deferred tax asset decreased although cash anddeposit increased.
(Liabilities)
Liabilities in the end of the current second quarter consolidated accounting period resulted in 5,942 mil. yen,decreasing by 261 mil. yen compared to the end of the previous consolidated accounting year.
This is mainly because short-term loan increased while outstanding consumption tax included in current liabilities
and others decreased, and lease debt decreased due to sellout of Shimonoseki Toyoura-cho photovoltaic plant.
(Net assets)
Net assets in the end of the current second quarter consolidated accounting period resulted in 3,534 mil. yen,increasing by 165 mil. yen compared to the end of the previous consolidated accounting year.
This is mainly because of record of the quarterly profit belonging to the parent company shareholders.

―4―②Status of cash flow
Cash and cash equivalent (hereafter “Fund”) in the current second quarter consolidated accounting period was 1,058
mil. yen, increasing by 58 mil. yen compared to the end of the previous consolidated accounting year due to income
from sellout of the tangible fixed asset and increase of short-term loan, etc.
(Cash flow by sales activities)
The Fund gained as a result of sales activities was 158 mil. yen (Fund of 605 mil. yen was gained in the same termof the previous year).
This was manly because of increase of the quarterly net profit before adjustment of tax, etc.
(Cash flow by investment activities)
The Fund spent as a result of investment activities was 125 mil. yen (Fund of 64 mil. yen was spent in the same termof the previous year).
This was mainly because of income by sellout of the tangible fixed asset.
(Cash flow by financial activities)
The Fund spent as a result of investment activities was 222 mil. yen (Fund of 969 mil. yen was spent in the same
term of the previous year).
This was mainly because there was expenditure, etc. for repayment of lease debt despite increase of short-term loan.
③ Business and financial issues to be addressed
There are no material matters in the business and financial issues to be addressed among those arising in the current
second quarter consolidated accounting period.
④ Research and development activities
Total amount of research and development cost in the current second quarter consolidated accounting period is 98
mil. yen.
There is no material change in the status of our group’s research and development activities in the current second
quarter consolidated accounting period.
(3) Explanation on the future forecast information including the consolidated performance expectation information
No change in the performance forecast announced on May 20, 2019 for performance forecast.

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2.Consolidated financial statements and Notes(1)Consolidated balance sheet(In thousand yen)
FY 2019 (consolidated)(As of March 31,2019)

2Q FY 2020 (consolidated)(As of September 30,2019)

AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable - trade

1,026,668
1,535,070

1,085,447
1,443,165

Merchandise and finished goods
Work in process

1,616,585
878,670

3,313,679
1,307,522

Raw materials and supplies
Advance payments - trade

185,023
75,543269,867
79,282

Other
Allowance for doubtful accounts

324,495

123,466△14,392△14,392

Total current assets

5,627,664

7,608,039

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

512,094

513,130△331,934△338,905

Buildings and structures, net

180,160

174,224

Machinery, equipment and vehicles

2,575,930

442,073

Accumulated depreciation△237,289△127,857

Buildings and structures, net

2,338,641

314,216

Tools, furniture and fixtures

795,941

817,281

Tools, furniture and fixtures△643,663△671,292

Accumulated depreciation

152,277

145,989

387,466
17,540387,466
15,0003,076,086

1,036,897

Intangible assets
Goodwill

39,61439,327

SoftwareOther

48,2050

54,0660Total intangible assets

87,82093,393

Investments and other assets
Investment securities

Land
Construction in progress
Total property, plant and equipment

22,152

20,589Long-term loans receivable
Deferred tax assets

45,761
187,140

46,458150,984

Other
Allowance for doubtful accounts

506,398

504,823△8,700△8,700Total investments and other assets

752,754714,155

3,916,660

1,844,446

Share issuance cost
Development expenses

4,909
100

3,882
85

Business commencement expenses

23,335

20,542

Total non-current assets
Deferred assets

Total deferred assets
Total assets―6―

28,34524,5109,572,670

9,476,996

(In thousand yen)
FY 2019 (consolidated)(As of March 31,2019)

2Q FY 2020 (consolidated)(As of September 30,2019)

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

503,108
50,000635,849
350,000

Current portion of long-term loans payable
Lease obligations

464,982
179,152

321,772
168,212

Accounts payable - other
Income taxes payable

151,932
59,636

121,526
91,514

Advances received
Provision for bonuses

444,000
114,905450,061
68,196

Provision for product warranties
Other

14,257
213,953

16,787
142,801

2,195,928

2,366,722

Long-term loans payable
Lease obligations

231,415
3,132,673

143,8032,734,572

Deferred tax liabilities
Net defined benefit liability

2,501
187,940

2,435
197,813

Asset retirement obligations
Long-term accounts payable - other

35,193416,612

16,994
422,531

1,882

57,8294,008,218

3,575,980

6,204,146

5,942,702

Capital stock
Capital surplus

1,770,627
1,065,912

1,805,919
1,079,130

Retained earnings
Treasury shares

595,043

722,367△61,313△61,313

Total shareholders equity

3,370,270

3,546,104

Total current liabilities
Non-current liabilities

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities△724△2,248Foreign currency translation adjustment△5,085△13,318

Accumulated other comprehensive income△5,810△15,567

4,064

3,756

3,368,524

3,534,293

9,572,670

9,476,996

Share acquisition rights
Total net assets
Total liabilities and net assets―7―

(2) Quarterly consolidated statements of income and Quarterly consolidated statements of comprehensive income
Quarterly
Consolidated statements of income
Consolidated second quarter period

Net Sales
Cost of sales

2Q FY2019(from April 1, 2018 toSeptember 30, 2018)
1,655,905
1,108,232(In thousand yen)
2Q FY2020(from April 1, 2019 to
September 30, 2019)2,469,210
1,527,357

Gross profit

547,672

941,852

Selling, general and administrative expenses

531,424

610,683

Operating profit

16,248331,168

Non-operating income
Interest income

4,435

2,207

254
11

270
-

Dividend income
Exchange gain
Share of profit of entities accounted for using equity
method
Other

-

3,308

7,856

4,234

Total non-operating income

12,556

10,021

116,773

91,562

-

676

2,466

-

4,035

4,843

Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary Profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Other
Total extraordinary losses
Profit before income taxes

123,276

97,082△94,470

244,107

1,666

-

1,666

-

424

-

424

-

△93,229

244,107

Income taxes - current

10,04380,776

Income taxes - deferred△8,32236,007

1,720

116,784△94,950

127,323--△94,950

127,323

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent―8―

Quarterly consolidated statements of comprehensive income
Consolidated second quarter period△94,950(In thousand yen)
2Q FY2020(from April 1, 2019 to
September 30, 2019)
127,323

1,395
13,135△1,523△8,2332Q FY2019(from April 1, 2018 toJune 30, 2018)
Net Profit for the Quarter
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income（breakdown）
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests―9―

14,530△9,757△80,419

117,566△80,419

117,566--

(Segment information, etc.)【Segment information】
I. Previous 2Q consolidated cumulative period (from April 1, 2018 to June 30, 2018)
Information concerning the sales amount and the amount of profit or loss per report segment(unit: thousand yen)Amountrecorded in
Adjustedquarterly
amountconsolidated(Note) 1
profit and loss
statement(Note) 2

Report segment
Electronic /Renewablecommunication energy system
device business sales business

Renewableenergygeneration
business

Total

Sales amount
Sales amount to externalclients
Internal sales amount ortransfer amount between
segments

1,035,579

237,668

379,729

1,652,977

2,928

1,655,905－

19,071－

19,071△19,071－

Total

1,035,579

256,740

379,729

1,672,048△16,143

1,655,905

Segment profit or loss (△)△31,816△15,360

149,733

102,556△86,307

16,248(Note)
1. Adjusted amount of segment profit or loss (△) △ 86,307 thousand yen is adjusted amount of unrealized profit △3,115 thousand
yen, adjusted amount of dividends from the consolidated subsidiary △35,000 thousand yen, transaction deletion between segments△4,000 thousand yen, and profit and loss of group management division not distributed to business segment △50,423 thousandyen.
2. Segment profit or loss (△) matches operating loss (△) in the quarterly consolidated profit and loss statement.
II. Current 2Q consolidated cumulative period (from April 1, 2019 to September 30, 2019)
Information concerning the sales amount and the amount of profit or loss per report segment(単位：千円)Amountrecorded inquarterly
consolidated
profit and loss
statement(Note) 2

Report segment
Electronic /Renewablecommunication energy system
device business sales business

Renewableenergygeneration
business

Adjusted
amount(Note) 1

Total

Sales amount
Sales amount to externalclients
Internal sales amount ortransfer amount between
segments

1,407,360

83,013

971,147

2,461,521

7,689

2,469,210

－

－

－

－

－

－

Total

1,407,360

83,013

971,147

2,461,521

7,689

2,469,210

Segment profit or loss (△)

84,791△85,688421,271

420,374△89,205

331,168(Note)
1. Adjusted amount of segment profit or loss (△) △89,205 thousand yen is adjusted amount of unrealized profit, etc. 4,640 thousand
yen, adjusted amount of dividends from the consolidated subsidiary △35,000 thousand yen and profit and loss of group management
division not distributed to business segment △58,845 thousand yen.

2. Segment profit or loss (△) matches operating profit in the quarterly consolidated profit and loss statement.

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