FY2021 March The 2Q Summary of Accounting Statements[Japanese Standards] (consolidated)
Listed company nameTamagawa Holdings Co., Ltd.

Exchange

Code No.
Representative

November 13, 2020Tokyo
https://www.tmex.co.jp
Toru Masuzawa

6838
URL
(Title) President(Name)
Finance and accounting division
Contact person(Title)(Name) Masumi Sekiguchi (TEL)
manager
Quarterly report to be submitted：
November. 13, 2020
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 2021 Mar.: 2Q (from Apr 1, 2020 to Sep. 30, 2020)(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.yenFY2021 Mar. 2Q
2,256
△8.6
FY2020 Mar. 2Q
2,469
49.1
(Note) Comprehensive profit: FY2021 Mar. 2Q%

mil.yen%mil.yen%56 △82.9
22 △90.6
32 △74.8
331
－
244
－
127
－
27mil.yen( △76.3%) FY2020 Mar.2Q
117mil.yen( －%)Quarterly net profit per
Quarterly net profit per
share after issuable
share
share adjustment
yen

FY2021 Mar. 2Q
FY2020 Mar. 2Q

yen

6.08
28.51

5.81
25.36

(2) Consolidated financial status
Gross asset

Net asset
mil.yenFY2021 Mar. 2Q
9,559
FY2020 Mar.
9,423
(Reference)
Own capital: FY2021 Mar. 2Q
4,478mil yen

2. Status of dividends

Own capital ratio
mil.yen

%

4,492
4,156
FY2020 Mar.

46.8
44.1
4,154mil. yen

Annual dividends
End 1QEnd 2Qyen

FY2020 Mar.
FY2021 Mar.

End 3Q
yen

0.00
0.00

－
－

Term endyen

FY2021 Mar. (forecast)(Note) Correction from the dividend forecast recently announced:

Total
yen

yen

－

7.00

7.00

－

5.00
～30.005.00～30.00None

3. Consolidated performance forecast of 2021 Mar. (from Apr 1, 2010 to Mar. 31, 2021)(% indication: change compared with the same quarter of the previous year)
Sales amountmil. yen

Operating profit%

mil. yen%

Full business year
6,937
9.5
850
5.5
(Note) Correction from the performance forecast recently announced:―1―

Ordinary profit
mil. yen

%

713

6.0
None

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

499

%

13.6

Current net profit per
share
yen

109.54

※ 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)*

FY2021 Mar. 2Q

5,471,100 shares

FY2020 Mar.

5,062,000 shares

FY2021 Mar. 2Q

61,454 shares

FY2020 Mar.

61,454 shares

FY2021 Mar. 2Q

5,272,120 shares

FY2020 Mar. 2Q

4,465,279 shares

The quarterly summary of accounting statement is not subject to quarterly review by the certified accountant oraudit company.

―2―1. Qualitative information concerning the current quarterly financial statement
・ Explanation of management result of the current term
The Japanese economics in the current second quarter consolidated accumulative period continues to shift
with uncertain situation due to the impacts on the global economics given by trend of the issues between US andChina and future of Chinese economics, and uncertainty in the policies. In addition, while we are exploringbrand new corporate activities because visiting to the clients and business negotiation, etc. are strictly restricted
due to pandemic of Covid-19 since the beginning of this year and “declaration of state of emergency” by theJapanese government on April 7, our group has engaged in both prevention of infection spread and sales activities
by shifting to 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 and public related market continuously from last year, wehave been also dedicated to new markets and client exploration to actively 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 thecompany of business tie-up.”
As a result, newly explored clients and inquiries are increasing from new markets besides the existing analog
high frequency 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
wireless transmission of data of large volumes.
Especially in the current second quarter consolidated accumulative period, we have gained remarkable sales
from large order of semiconductor burn-in equipment, etc. and we have firmly achieved success such as specificlaunching of “manufacturing of the low-power high-frequency circuit for linear accelerator and beam monitor
circuit system of the next-generation radiant light facility.”In the mobile communication field, demands for high-frequency components are increasing including the 5G
related market.
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 productdevelopment for equipment of the 5G related market.
Although order receipt condition in general electronic and communication device business is slightly
decreasing compared to the previous term, it is mainly due to slowing of progress of the clients’ plans, and wewill continue to promote expansion of our group’s business field as well as proposing new sales method
according to change of time and also continue the activities for profit expansion by implementation andenhancement of self-development products.
We have promoted development and sales of the solar power plants and small wind power plants in the
renewable energy system sales business. For development and sale of solar power plants, we conduct the entire
flow of development of land, procurement, sale and maintenance inhouse in order to secure profit while fixedprice purchase is dropping and we will continue to reduce costs for construction and maintenance as well as
promoting the development / sales to contribute to the business performance.
We are considering development / sales of the small wind power plants as our future middle and long-term
major business and we will continue further promotion of them. We hold the power selling right of the fixedpurchase price of 55 yen/kWh for 20 years in Hokkaido, where the wind condition is good, and will obtain profit
from increase of power selling income from our own plants and through sales after the development. Three units
have been interconnected and sold in Hokkaido before July 2020, and approximately ten units are also scheduled
to be interconnected before December 2020. We will continue to speed up the development for profit expansion.
―3―

In the renewable power plant business, the already-operating solar power plants have been selling power at agood rate including Nagasaki Pref., Goto City, Kojindake Solar Power Plant. Small wind power plants are also
promoting development, and some units have been selling power since October 2020. In addition to the fullscale wind condition survey started since April 2020, we have started the boring survey since June for the large
wind power plant (1.984MW) in Nemuro City, Hokkaido. We are in process of interconnection in 2022 at agood rate.
Additionally, our group has promoted development in renewable energy and overall environmental businessalso in Southeast Asia. Construction of the small waterpower plant under development in Flores Island, Nusa
Tenggara, Indonesia has been started. This project to sell power to the Indonesian government owned electriccompany and contribute to reduction of greenhouse gas (GHG) and reduction of GHG in Japan by obtaining JCM
credit. Electricity penetration rate in Nusa Tenggara is 61.9%, which is the lowest in Indonesia, and therefore,
our project will also contribute to improvement of their electricity penetration rate.
As the result of the above, the amount of orders received in the current second quarter consolidated
accumulative period was 2,093mil. yen (6.2% increase compared with the same term of the previous year), andthe sales amount was 2,256 mil. yen (8.6% decrease compared with the same term of the previous year). In
terms of profit and loss, operating profit was recorded as 56 mil. yen (82.9% decrease compared with the same
term of the previous year), ordinary profit was recorded as 22 mil. yen (90.6% decrease compared with the same
term of the previous year), and therefore the quarterly net profit belonging to the parent company shareholders
was 32 mil. yen (74.8% decrease compared with the same term of the previous year).
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, thedemands are stably increasing and it is expected to shift steadily hereafter. We will continue to promote
expansion of our group’s business fields and also continue the activities for profit expansion by enhancement ofproposal of self-developed products.
Our group is positively considering development of the renewable energy and overall environmental
businesses which will become our next pillar overseas mainly in Southeast Asia in addition to Japan for
expansion of operations of such businesses. We will continuously endeavor not only to reduce CO2, but also
to contribute to the community and domestic and international societies and to introduce, spread and promoterenewable energy by taking advantage of characteristics of the community, and accelerating development ofcommunity-based renewable energy.
Management result status by business type segments is as follows.
a. Electronic / communication device business
Thanks to steady demand in the mobile communication filed and civil service and public related field, theamount of orders received was 1,942 mil. yen (11.2% decrease compared with the same term of the previousyear), sales amount was 1,859 mil. yen (32.2% increase compared with the same term of the previous year),and segment profit was 210 mil. yen (147.9% increase compared with the same term of the previous year).
b. Renewable energy system sales business
Since we focused on lot selling of small wind power plants and we could also sell the solar power plants,
the amount of orders received was 150 mil. yen (235.4% increase compared with the same term of theprevious year), sales amount was 211 mil. yen (154.2% increase compared to the same term of the previousyear), and segment loss was 57 mil. yen (segment loss of the same term of the previous year: 85 mil. yen).
c. Renewable energy plant business
The already-operating solar power plants in Noboribetsu 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―4―

good rate. However, in such second quarter consolidated cumulative period, since sales and profit bysellout of one megasolar power plant during the previous second quarter consolidated cumulative period
and income from such power selling decreased, the sales amount was 204 mil. yen (78.9% decrease
compared with the same term of the previous year) and segment profit was 42 mil. yen (90.0% decrease
compared with the same term of the previous year).

―5―

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

2Q FY 2021 (consolidated)(As of September 30,2020)

AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable - trade

2,215,666
1,391,469

2,030,827
1,586,296

Merchandise and finished goods
Work in process

2,889,509
778,5622,814,903
745,495

Raw materials and supplies
Advance payments - trade

231,870
105,709236,527
56,604

Other
Allowance for doubtful accounts

166,749

209,582△17,632△17,632

Total current assets

7,761,905

7,662,603

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

514,488516,405

Accumulated depreciation△346,363△353,361

Buildings and structures, net

168,125

163,044

Machinery, equipment and vehicles

368,769

371,897

Accumulated depreciation△135,540△150,775

233,229

221,122

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress

824,843855,015△687,178△708,355

137,665

146,660

272,573272,573－990

811,592

804,390

Intangible assets
Goodwill

39,03938,677

SoftwareOther

51,809050,2020Total intangible assets

90,84888,879Investments and other assets
Investment securities

51,164

107,567

Long-term loans receivable
Deferred tax assets

55,725
181,357

109,572
202,601

Other
Allowance for doubtful accounts

458,529

519,529△8,700△8,700Total investments and other assets

738,077

930,570

1,640,518

1,823,840

Share issuance cost
Development expenses

2,935
71

58,022
56

Business commencement expenses

17,74914,955

Total property, plant and equipment

Total non-current assets
Deferred assets

Total deferred assets
Total assets―6―

20,75573,034

9,423,180

9,559,478

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

2Q FY 2021 (consolidated)(As of September 30,2020)

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

400,496
74,980446,490
84,170Current portion of long-term loans payable
Lease obligations

315,775
172,964

330,066
142,837

Accounts payable - other
Income taxes payable

176,095
96,648

123,526
26,366

Advances received
Provision for bonuses

322,665
119,402

320,144
95,904

Provision for product warranties
Other

22,878259,627

24,229145,577

1,961,534

1,739,314

Long-term loans payable
Lease obligations

368,9112,289,987

462,281
2,218,407

Deferred tax liabilities
Net defined benefit liability

331
207,112283
224,141

Asset retirement obligations
Other

15,155423,289

15,155407,043

Total non-current liabilities

3,304,788

3,327,313

5,266,322

5,066,627

Shareholders' equity
Capital stock

1,961,823

2,127,436

Capital surplus
Retained earnings

1,235,035
1,034,475

1,365,644
1,066,576

Treasury shares△61,313△61,313

Total shareholders' equity

4,170,020

4,498,344

Foreign currency translation adjustment△3,962△11,724△193△19,765

Accumulated other comprehensive income△15,687△19,959

Total current liabilities
Non-current liabilities

Total liabilities
Net assets

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

Share acquisition rights
Total net assets
Total liabilities and net assets

―7―

2,524

14,465

4,156,857

4,492,851

9,423,180

9,559,478

(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 FY2020(from April 1, 2019 to
September 30, 2019)2,469,210
1,527,357(In thousand yen)
2Q FY2021(from April 1, 2020 to
September 30, 2020)
2,256,459
1,649,551

Gross profit

941,852

606,907

Selling, general and administrative expenses

610,683

550,209

Operating profit

331,168

56,698

2,207

5,870

270

536

3,308

－

1,976

25,571
12,104Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodInsurance income
Gain on forgiveness of debts
Other

－
2,258

Total non-operating income

10,021

49,219Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodOther

91,562676

71,968
1,069

－

2,416

4,843

7,509

Total non-operating expenses

97,08282,964

5,136

Non-operating expenses

Ordinary income

244,107

22,953

Profit before income taxes

244,107

22,953

Income taxes - current

80,77615,117

Income taxes - deferred

36,007△24,265

Total income taxes

116,784△9,147

Net Profit for the Quarter

127,323

32,101

Profit attributable to owners of parent

127,323

32,101―8―

Quarterly consolidated statements of comprehensive income
Consolidated second quarter period
2Q FY2020(from April 1, 2019 to
September 30, 2019)
127,323(In thousand yen)
2Q FY2021(from April 1, 2020 to
September 30, 2020)
32,101

Valuation difference on available-for-sale securities
Foreign currency translation adjustment△1,523△8,233△8,041

Total other comprehensive income

Net Profit for the Quarter
Accumulated other comprehensive income

3,769△9,757△4,272Comprehensive income

117,566

27,829（breakdown）
Comprehensive income attributable to owners of parent

117,566

27,829―9―

(Segment information, etc.)【Segment information】
I. Previous 2Q consolidated cumulative period (from April 1, 2019 to June 30, 2019)
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

1,407,360

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 △4,640 thousand
yen, adjusted amount of dividends from the consolidated subsidiary △ 35,000 thousand yen, and profit and loss of groupmanagement division not distributed to business segment △58,845 thousand yen.
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, 2020 to September 30, 2020)
Information concerning the sales amount and the amount of profit or loss per report segment
Report segment
Electronic /Renewablecommunication energy system
device business sales business

Renewableenergygeneration
business

Total(unit: thousand yen)Amountrecorded in
Adjustedquarterly
amountconsolidated(Note) 1
profit and loss
statement(Note) 2

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

1,859,997

198,414

198,047

2,256,459－

2,256,459－

12,6126,450

19,062△19,062－

Total

1,859,997

211,027

204,497

2,275,522△19,0622,256,459

Segment profit or loss (△)

210,206△57,163

42,115

195,157△138,459

56,698(Note)
1. Adjusted amount of segment profit or loss (△) △138,459 thousand yen is adjusted amount of inter-segment transactions 8,293
thousand yen, adjusted amount of dividends from the consolidated subsidiary △55,000 thousand yen and profit and loss of groupmanagement division not distributed to business segment △75,165 thousand yen.
2. Segment profit or loss (△) matches operating profit in the quarterly consolidated profit and loss statement.

―10―