FY Mar. 2020

Summary of Accounting Statements [Japanese Standards] (consolidated)
May 20, 2020

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 26, 2020
Securities report to be submitted:
June 26, 2020

Toru Masuzawa
Keita Masuyama

:

Yes

(

For institutional investors / analysts )Operating profit

mil. yen

6,332
3,841

(Note) Comprehensive profit％

mil. yen％mil. yen

64.9
18.0

805
153

426.0
187.7

672
△79

FY Mar. 2020

Current net profit pershare

429 mil. yen ( 225.5 %)Current net profit per share after
dilutive share adjustment

yen

FY Mar. 2020
FY Mar. 2019

Current net profit ratio ofown capital

84.09
29.35

(Reference) Investment profit on equity method

FY Mar. 2020

(2) Consolidated financial status

Gross asset

12 mil. yen

Net asset
mil. yen

FY Mar. 2020
FY Mar. 2019

％

％

12.7
4.0

mil. yen

Net asset per share

Cashflow by financial activities

FY Mar. 2019
FY Mar. 2020
FY Mar. 2021
(forecast)yen

End 2QEnd 3Q

yen

－
－

0.00
0.00

－

0.00

yen

－
－
－

Term end
yen

0.50
7.00
5.00
～30.00Term-end balance of cash and cashequivalentmil. yen

1,964
1,026

△688
△2,123
Total dividend(Total)Total

3,364 mil. yen

mil. yen

2. Status of dividend
End 1Q

830.77762.11FY Mar. 2019

132
928

Annual dividend

yen

44.1
35.1

mil. yen

1,499
499

△12 mil. yen％(3) Consolidated cashflow status

FY Mar. 2020
FY Mar. 2019

Operating margin ofsales amount

7.1
△0.8

Capital ratio

Cashflow by investment activities

－ %)

％

FY Mar. 2019

4,154 mil. yen

Cashflow by sales activities

131 mil. yen (

241.8
－

11.7
3.9

4,156
3,368

FY Mar. 2020

%

439
128

Ordinary margin ofgross asset

mil. yen

9,423
9,572

mil. yen%－－

FY Mar. 2019

yen

96.42
29.58

(Reference) Own capital(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. 2020
FY Mar. 2019

June 29, 2020

: Yes

1. Consolidated performance of FY Mar. 2020 (from Apr 1, 2019 to Mar 31, 2020)(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)

yen

Dividend tendency(Consolidated)mil. yen

0.50
7.00

22
35

Net asset dividend rate
(Consolidated)

％

％

16.90
6.91

0.67
0.88

－

－

(Note） 1. Capital surplus is included in the dividend resource of FY Mar. 2019 and FY Mar. 2020.
See “Breakdown of dividend with capital surplus as dividend” for detail.
2. Dividend tendency is not stated in the dividend forecast for FY Mar. 2021 because it is disclosed in the range form.

3. Consolidated performance forecast of FY Mar. 2021 (from Apr 1, 2020 to Mar 31, 2021)(% 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

6,937

％

9.5

mil. yen

850

％

5.5

mil. yen

713

％

6.0

mil. yen

499

％

13.6

yen

109.54

*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. 2020

5,062,000 shares FY Mar. 2019

4,476,100 shares② Number of term-end own shares

FY Mar. 2020

61,454 shares FY Mar. 201961,454 shares③ Average number of midterm shares (quarterly
accumulation)

FY Mar. 2020

4,557,326 shares FY Mar. 2019

4,325,626 shares(Reference) Outline of individual performance
Individual performance of FY Mar. 2020 (Apr. 1, 2019 ~ Mar. 31, 2020)(1) Individual management result(% indication: change compared with the same quarter of the previous year)

Sales amountOperating profit

mil. yen

181
183

FY Mar. 2020
FY Mar. 2019％mil. yen

△1.3
△10.1

△123
△84

-

Current net profit per share

Current net profit per shareafter dilutive share adjustment

yen

yen

FY Mar. 2020mil. yen△115△69

mil. yen

％

-

％

-

△104
△79

-

△22.94△18.40FY Mar. 2019

Current net profit

Ordinary profit％(2) Individual financial status
Gross asset

Net asset
mil. yen

FY Mar. 2019

(Reference)

Own capitalmil. yen

3,974
3,428

FY Mar. 2020

Capital ratio
％

2,874
2,623

FY Mar. 2020

2,872 mil. yen

Net asset per share

72.3
76.4
FY Mar. 2019yen

574.37593.332,619 mil. yen* 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.

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 2020 is as follows.
Record dateTerm-end

Total

Dividend per share

7.00 yen

7.00 yen

Total dividend amount

35 mil. yen

35 mil. yen(Note) Net asset reduction rate: 0.012

(1) Overview of management result of the current term
Matters herein concerning the future were determined by our group (our company our consolidated subsidiary) 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 situation due to the impacts on the global
economics given by trend of the trading issues and future of Chinese economics, and uncertainty in the policies.
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, 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 ourself-developed products by continuously promoting “effort for high added-value products,” “expansion and explorationof 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.
Among those, we have achieved great success with positive approach for further new markets such that we solely
won a bid in the general bid over “manufacturing of the low-power high-frequency circuit for linear accelerator and beam
monitor circuit system of the next-generation radiant light facility” which was publicly notified by the “National Institutefor Quantum and Radiological Science and Technology” as announced on March 12, 2020.
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 product development
for equipment of the 5G 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 solar power plants and small wind power plants in the renewableenergy system sales business. In addition, for renewable energy system sale business, we have completed sale ofthe high-voltage solar power plants which was in delay due to bad weather conditions We will continue thedevelopment / sales activities of photovoltaic power plants, small wind power plants, etc. for profit expansion.
In the renewable power plant business, the already-operating solar power plants have been selling power at a goodrate. Nagasaki Prefecture, Goto-City, Kojindake Solar Power Plant has completed its extension with solar panels of
approximately 500kW in March 2020, started power selling from the extended area at 36 yen of fixed purchase price,and the power generation volume is expanded to 5,847kW. In addition, by generally judging that we can plan to invest
for the next business expansion, we sold out Shimonoseki Toyoura-cho Solar Power Plant in September 2019 andChiba Prefecture, Tateyama Plant on March 25, 2020. Our group is actively reviewing the general renewable energy
and environmental businesses which will become our next pillar for expansion of operations of such businesses.
As the result of the above, the amount of orders received in the current consolidated accounting year was 4,494mil.
yen (30.3% increase compared with the same term of the previous year), and the sales amount was 6,332 mil. yen(64.9% increase compared with the same term of the previous year). In terms of profit and loss, operating profit was
805 mil. yen (426.0% increase compared with the same term of the previous year), ordinary profit was 672 mil. yen(ordinary loss of the same term of the previous year: 79 mil. yen), and the current net profit belonging to the parent
company shareholders was 439 mil. yen due to recording of 74 mil. yen of impairment loss (241.8% increase comparedwith 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, 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, in addition to development / sales of solar 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 by taking
advantage of characteristics of the community, and accelerating development of community-based renewable energy

Management 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 4,334 mil. yen (35.6% increase compared with the same term of
the previous year), sales amount was 3,417 mil. yen (19.7% increase compared with the same term of theprevious year), and segment profit was 348 mil. yen (57.1% increase compared with the same term of the previousyear).
b. Renewable energy system sales businessAlthough we are focusing on lot selling of mainly solar power plants, due to decrease of demand for cases of solar
power generation according to reduction of the fixed purchase price and amended FIT law, the amount of orders
received was 159 mil. yen (37.0% decrease compared with the same term of the previous year), sales amountwas 97 mil. yen (120.0% increase compared to the same term of the previous year), and segment loss was 27
mil. yen (segment loss of the same term of the previous year: 83 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 goodrate. In addition, since we sold out Shimonoseki Toyoura-cho Solar Plant in September 2019 and Chiba
Prefecture Tateyama power plant in March 2020 by generally judging that we can plan to invest for the next
business expansion, the sales amount was 2,091 mil. yen (239.7% increase compared with the same term of theprevious year) and segment profit was 698 mil. yen (294.1% increase compared with the same term of theprevious year).

Consolidated financial statements and Notes
Consolidated balance sheet(In thousand yen)
FY2018(consolidated)(As of March 31,2019)

FY2019(consolidated)(As of March 31,2020)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

1,026,668
1,535,070

2,215,666
1,391,469

Merchandise and finished goods
Work in process

1,616,585
878,6702,889,509
778,562

Raw materials and supplies
Advance payments - trade

185,023
75,543

231,870
105,709

Other
Allowance for doubtful accounts

324,495

166,749△14,392△17,632

Total current assets

5,627,664

7,761,905

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

512,094

514,488△331,934△346,363

Buildings and structures, net

180,160

168,125

Machinery, equipment and vehicles

2,575,930

368,769

Accumulated depreciation△237,289△135,540

Machinery, equipment and vehicles, net

2,338,641

233,229

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment

795,941

824,843△643,663△687,178

152,277

137,665

387,466
17,540272,573-

3,076,086

811,592

Intangible assets
Goodwill

39,61439,039SoftwareOther

48,205051,8090Total intangible assets

87,82090,848Investments and other assets
Investment securities

22,152

51,164Long-term loans receivable
Deferred tax assets

45,761
187,140

55,725
181,357

Other
Allowance for doubtful accounts

506,398

458,529△8,700△8,700Total investments and other assets

752,754738,077

3,916,660

1,640,518

Share issuance cost
Development expenses

4,909
100

2,935
71

Business commencement expenses

23,335

17,749Total deferred assets

28,34520,755

9,572,670

9,423,180

Total non-current assets
Deferred assets

Total assets

(In thousand yen)
FY2018(consolidated)(As of March 31,2019)

FY2019(consolidated)(As of March 31,2020)

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

503,108
50,000400,496
74,980Current portion of long-term loans payable
Lease obligations

464,982
179,152

315,775
172,964

Accounts payable - other
Income taxes payable

151,932
59,636

176,095
96,648Advances received
Provision for bonuses

444,000
114,905

322,665
119,402

Provision for product warranties
Other

14,257
213,953

22,878259,627

2,195,928

1,961,534

Long-term loans payable
Lease obligations

231,415
3,132,673

368,9112,289,987

Deferred tax liabilities
Net defined benefit liability

2,501
187,940

331
207,112

Asset retirement obligations
Long-term accounts payable - other

35,193416,61215,155
358,483

1,882

64,805

4,008,218

3,304,788

6,204,146

5,266,322

1,770,627
1,065,912

1,961,823
1,235,035

595,0431,034,475

Total current liabilities
Non-current liabilities

Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares△61,313△61,313

Total shareholders' equity

3,370,270

4,170,020

Accumulated other comprehensive income
Valuation difference on available-for-sale securities△724△3,962Foreign currency translation adjustment△5,085△11,724

Accumulated other comprehensive income△5,810△15,687

4,064

2,524

3,368,524

4,156,857

9,572,670

9,423,180

Share acquisition rights
Total net assets
Total liabilities and net assets

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

Net sales
Cost of sales

FY2018(From April 1,2018 toMarch 31,2019)
3,841,699
2,603,190(In thousand yen)
FY2019(From April 1,2019 toMarch 31,2020)
6,332,983
4,350,804

Gross profit

1,238,509

1,982,179

Selling, general and administrative expenses

1,085,341

1,176,522

153,167

805,656

Operating profit
Non-operating income
Interest income

6,799

3,226

Dividend income
Insurance income
Share of profit of entities accounted for using
equity method
Gain on forgiveness of debts

807
3,185

324
23,908-12,472

-

7,787

Other

11,203

6,164

Total non-operating income

21,99653,884

Interest expenses
Foreign exchange losses

232,766
824

172,830
3,413

Share of loss of entities accounted for using equity method

Other

12,632
8,321

10,344

Total non-operating expenses

254,545

186,587△79,380

672,952

Gain on sales of non-current assets
Gain on sales of investment securities

239,380-

14,754

Total extraordinary income

239,380

14,754-

42,622424
8,567

19,44774,026

Non-operating expenses

Ordinary profit (loss)（△）
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Total extraordinary losses

8,992

136,097

151,006

551,609

Income taxes - current

74,387

108,764

Income taxes - deferred△51,944

3,413

Total income taxes

22,443112,178

Profit (loss)（△）

Profit before income taxes

128,563

439,431

Profit (loss) attributable to non-controlling interests--

Profit (loss) attributable to owners of parent（△）

128,563

439,431

Consolidated statement of comprehensive income

Profit (loss)（△）
Other comprehensive income
Valuation difference on available-for-sale securities

Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income

FY2018(From April 1,2018 toMarch 31,2019)
128,563(In thousand yen)
FY2019(From April 1,2019 toMarch 31,2020)
439,431△4,268
7,688△3,237△6,6393,420△9,877

131,983

429,554

131,983-

429,554-（detail）
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

Information regarding net sales, income or loss, assets, liabilities, and other items for each reportable segment.
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△28,126－

Total

2,854,416

394,584

615,8193,864,821△23,121

3,841,699

Segment income(loss)

221,696△83,624

177,213315,285△162,117

153,167

Segment assets

3,260,780

2,296,613

3,816,736

9,374,130

198,540

9,572,670

106,5635,001

309,451

421,016

1,994

423,010Equity in loss of affiliates－－△12,632△12,632－△12,632

Impairment Loss

－

－

8,567

8,567

－

8,567

－

－

45,76145,761－45,761

241,946－

193,484

435,431－435,431

Other items
Depreciation

Investment for affiliatedcompany accounted for by
the equity-method
Increase in property, plantand equipment and intangible
assets(Note) 1. (1) Adjusted amount △162,117,000 yen of segment profit or loss (△) is the adjusted amount of 6,961,000 yenof unrealized profit, etc., the adjusted amount of dividends from the consolidated subsidiary of △70,000,000 yen, cancellation and deletion between segments of △6,000,000 yen and profit and loss of thegroup administration division not allocated in the business segment of △93,079,000 yen.
(2) Adjusted amount of segment asset 198,540,000 yen is the asset of the group administration division notallocated in the business segment of 202,199,000 yen and cancellation and deletion between segments,
etc. of△3,658,000 yen.
2. Segment profit or loss (△) is adjusted with operating profit in the consolidated financial statements.

FY2019 (April 1, 2019 -March 31, 2020)(In thousand yen)
Reportable Segment
Electronic/
Renewable
Communi-cation Energy System
Device Business Sales Business

Renewableenergy plantbusiness

Total

Adjustment
amount(Note1)

Value
presented inconsolidated
financialstatements

Net Sales
Sales to external customers

3,417,475

823,672

2,091,835

6,332,983－

6,332,983

Internal sales or Transfers
between segments－

43,510－43,510△43,510－

Total

3,417,475

867,182

2,091,835

6,376,493△43,510

6,332,983

Segment income(loss)

348,307△27,325

698,447

1,019,429△213,773

805,656

Segment assets

3,893,845

3,220,644

1,663,635

8,778,125

645,054

9,423,180

121,897

4,888

325,981452,767△2,887449,880

Equity in profit of affiliates－－

12,472

12,472－

12,472

Impairment Loss－－

53,88953,88920,13774,026－－85,16085,160－85,16086,781－1,000

87,781－87,781Other items
Depreciation

Investment for affiliatedcompany accounted for by theequity-method
Increase in property, plant andequipment and intangible
assets(Note)1. (1) Adjusted amount △213,773,000 yen of segment profit or loss (△) is the adjusted amount of 4,809,000 yenof unrealized profit, etc., the adjusted amount of dividends from the consolidated subsidiary of △70,000,000 yen and profit and loss of the group administration division not allocated in the businesssegment of △148,582,000 yen.
(2) Adjusted amount of segment asset 645,054,000 yen is the asset of the group administration division notallocated in the business segment.
2. Segment profit or loss (△) is adjusted with operating profit in the consolidated financial statements.