(Consolidated) Financial Results for the Fiscal Year ending in March 2017
(Based on Japanese GAAP)May 12, 2017
Company name:Tamagawa Holdings Co., Ltd.
Listing:
Tokyo stock exchange
Stock code:
6838
URL http://www.tmex.co.jp
Representative: Toru Masuzawa, President
Contact:
Katsuya Kubo, Manager, Finance and Accounting Division(Tel) 03-6435-6933
Scheduled date of general
Scheduled date to commence
June 28, 2017
June 29, 2017
meeting of shareholders
dividend payment:
Scheduled date of filing
June 28, 2017securities report:
Preparation of explanatory: Yesmaterials for financial results
Holding of a briefing on: Yes(For analysts and institutional investors)
financial results(Amounts are rounded to millions)

1. Consolidated financial results for the FY 2017 (from April 1, 2016 to March 31, 2017)(1) Consolidated operating results(Percentage indicates year-on-year changes))
Net sales

Operating income

mil. yen%

Net income attributable toowners of parent

Ordinary income

mil. yen%mil. yen%mil. yen

△38.8
△32.3
△49.6
FY ending in March 2017
4,443
189
106
△47.4
△58.9
FY ending in March 2016
7,259
42.5
279
211
(Note) Comprehensive income:
FY 201744 mil. yen(△71.6 %)FY 2016
155
Net income per Diluted net income per
Ratio of ordinary
Return on equity
share
share
income to total assets
(yen)

(yen)

%

FY ending in March 2017
1.06
1.06
1.4
FY ending in March 2016
3.97
3.94
5.2
(Reference) Equity in earnings (loss) of affiliated companies: FY 2017 △11 mil. yen FY 2016:(2)

Net assets(mil. yen)

FY ending in March 2017
FY ending in March 2016
(Reference) Equity

%

4.3
3.9

Equity ratio

Net assets per share(mil. yen)

7,446
7,163

3,261
3,294
3,259 mil. yen FY 2016:

FY 2017

%

(yen)

43.8
45.8
3,278 mil. yen

77.64
78.08

Consolidated cash flow
Cash flows from operating Cash flows from investing
activities
activities

Cash flows from financing Cash and cash equivalents at
activities
the end of the period(mil. yen)(mil. yen)(mil. yen)(mil. yen)

102
1,613

△628
△391

△56
△2

2,155
2,736

FY ending in March 2017
FY ending in March 2016

2.

%

1.5
3.1
- mil. yen

Consolidated financial position
Total assets(3)

Dividends
Total amount
Ratio ofof cashPayout ratio dividends todividends (Consolidated) net assets(Annual)(Consolidated)

Annual dividends per shareFirst quarter

Year-end

Second quarter Third quarter

(yen)

(yen)

(yen)

(yen)

Total
(yen)

(mil. yen)%

FY ending in March 2017
0.00
1.50
1.50
62
37.73
FY ending in March 2016
0.00
1.00
1.00
41
94.05
March 2018 (Forecast)0.00- 1.00 - 3.00 1.00 - 3.00
(Note) 1. The source of dividends for the fiscal year ending in March 2016 includes capital surplus.
2. No dividend payment ratio is indicated for the forecast for FY 2018, because the dividend amounts are stated in ranges.

3.

%

△73.0
44
△61.3
165
mil. yen (△63.6 %)Ratio of operating
income to net sales

%

1.96
1.28

Forecast of consolidated financial results for FY 2018 (From April 1, 2017 to March 31, 2018)

Net sales
Full year(Percentage indicates year-on-year changes)
Net income attributable
Ordinary income
Net income per shareto owners of parent

Operating income(mil. yen)%(mil. yen)%(mil. yen)%(mil. yen)

%

(yen)

4,237

△4.6

202

7.2

107

0.9

57

28.1

1.36

* Notes:(1) Changes in significant subsidiaries during the period(Changes in specified shareholders resulting in changes in scope of consolidation)
New:
(2)

-

(Company Name)

Excluded::None- (Company Name)

Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to revision of accounting standards, etc.
: Yes
2)

Changes in accounting policies other than 1) above: None3)

Changes in accounting estimates: None4)

Restatement: None(Note) For details, please refer to “3. Consolidated financial statements and major notes; (5) Notes to consolidated
financial statements (changes in accounting policies) on page 13 of the attached materials.

(3) Total number of issued shares (common stock)1) Number of issued shares at the end of the period(including treasury shares)
2) Number of treasury shares at the end of theperiod3) Average number of shares during the period

FY ending inMarch 2017

42,598,000 shares

FY ending inMarch 2016

42,598,000 shares

FY ending inMarch 2017614,543 shares

FY ending inMarch 2016

614,245 shares

FY ending inMarch 2017

41,983,622 shares

FY ending inMarch 2016

41,596,443 shares(Reference) Summary of non-consolidated financial results
Non-consolidated financial results for FY ending in Mar. 2017 (From Apr. 1, 2016 to Mar. 31, 2017)(Percentage indicates change from the previous fiscal year)(1) Non-consolidated operating results
Net sales
FY ending in March 2017
FY ending in March 2016

Operating income

Net income%(mil. yen)%(mil. yen)%(mil. yen)

%

325
245

32.3
△21.3

26
△46

-

21
△56

-

82
△37

-

Net income per share
FY ending in March 2017
FY ending in March 2016

(2)

Ordinary income(mil. yen)

Diluted net income per share

(yen)

(yen)

1.97
△0.91

1.97
-

Non-consolidated financial position
Total assets

Net assets(mil. yen)

FY ending in March 2017
3,577
FY ending in March 2016
3,852
(Reference) Equity
FY ending in March 2017:
2,685 mil. yen

Equity ratio

Net assets per share(mil. yen)

%

(yen)

2,687
2,682

75.1
69.2
FY ending in March 2016:

63.96
63.50
2,666 mil. yen* This financial results report is not subject to financial audit.
* Explanation regarding appropriate use of the forecasted financial results, and other matters:
Forecast of financial results and all other forward-looking statements contained in these materials are based on
information currently available to us as well as certain premises which we believe to be reasonable. Actual results
may differ substantially from the predictions due to various factors. For assumptions used as premises for theforecasts, as well as precautions for use of forecasts, please refer to “1. Summary of operating results, etc.; (4) Future
outlook” on page 4 of the attached materials.

1. Summary of operating results(1) Summary of operating results for the fiscal year under review
1. Operating results for the fiscal year under review
During the current fiscal year, the Japan’s economy was on a moderate recovery, with corporate earnings andemployment showing signs of a turnaround.

The outlook, however, remained uncertain, reflecting fears of downturn

driven by international factors such as anticipated slowdown of Chinese economy and the UK’s decision to leave theEuropean Union.
In such economic environment, we have made the following efforts.

In the Electronics and Telecoms Equipment

segment, we focused on increasing sales of facilities relating to the fourth-generation of mobile telecommunications
technology (4G) and sales in public sector, as well as capturing orders in new business areas through entering newmarkets and acquiring new customers.

In addition, we focused on sale of internally developed products, together

with our ongoing efforts of “delivering higher value-added products,” “expanding and developing business areas,” and“engaging in joint development with business partners.”
As a result, we have seen gradual increase in the number of enquiries from new customers and in new markets,
including enquiries regarding optical equipment for business-use wireless devices, as well as high-speed digital signal
processors, in addition to our previous high-frequency analog products.
In the mobile telecommunications sector, capex spending by telecom companies showed a moderate increase fromthe second half of the fiscal year, in line with their efforts to avoid signal interference and improve connection quality.
Additionally, there has been gradual increase in the number of enquiries we received from new customers regarding
mobile telecommunications facilities for foreign markets.
In the public sector, we have seen higher demand for optical transmission equipment and digital signal processors,etc., for use in disaster preparation, business-use wireless devices, and surveillance systems. We are aiming tofurther expand such demand, and also to engage in activities which take into account the prospect of market for 5G
technology.
As a whole, the number of orders we received has increased.

For creating a stable business foundation, we willcontinue our efforts for increasing profits through expansion of business areas and sale of internally developed
products.
In the Renewable Energy Systems Sales segment, we focused on solar power plants.

As environment

surrounding solar power plants has been increasingly challenging due to various regulations, including those impose
by the Ministry of Economy, Trade and Industry regarding operation of power plants and certification under the feed-in
tariff program, our group has actively started looking into the prospect of next renewable energy and environment
business in general, which will become a mainstay of our group, with an aim of expanding the segment.
As a result, orders and net sales for the current fiscal year were 4,361 million yen (a decline of 38.5% YoY) and
4,443 million yen (a decline of 38.8% YoY), respectively, and operating income, ordinary income, and net income
attributable to owners of parent were 189 million yen (a decline of 32.3% YoY), 106 million yen (a decline of 49.6%
YoY), and 44 million yen (a decline of 73.0% YoY), respectively.
In the Electronics and Telecoms Equipment segment, we have been focused on increasing sales in public sector
and acquiring new customers.

Especially as demand in public sector has been growing, and is expected to maintainsteady growth in the future, we will remain focused on increasing profit through expansion of business areas and saleof internally developed products.
In the Renewable Energy System Sales segment, we have been planning and developing products and services
relating to renewable energy, with an aim of future expansion of the segment. We will continue our efforts to further
expand our sales network and improve our operating systems, for the purpose of maximizing profit.
In the Solar Power and Geothermal Power Plant Operation segments, we are actively working on development of
new business, with an aim of securing long-term stable profit, and are planning to continue increasing the number ofour company-owned clean-energy plants that use solar power and other renewable energy.
In addition to such renewable energy business, we are also eyeing opportunities in hydrogen energy business, as a
new clean energy capable of generating and storing electricity without emitting CO2, and have established the“Preparatory office for hydrogen energy business” to investigate and consider the opportunities.

Results by segment are as follows:
1) Electronics and Telecoms Equipment:
Orders and net sales were 2,735 million yen (an increase of 26.9% YoY) and 2,605 million yen (an increase of
23.6% YoY), respectively, and the segment profit was 245 million yen (compared to segment loss of 11 million
yen in the previous fiscal year).

The increase was due to the moderate upturn in telecom companies’ capex

spending from the second half of the fiscal year, associated with measures against signal interference, growth inorders in the government and public sectors, and reduction of costs through streamlining operations.
2) Renewable Energy System Sales:
Orders and net sales were 1,626 million yen (a decline of 67.1% YoY) and 1,659 million yen (a decline of 66.6%
YoY) respectively, and the segment profit was 110 million yen (a decline of 61.3% YoY).

The decline was due

to our decision, with an aim of establishing a base for generating long-term stable profits, to own (rather thansell) some of the solar power plants which we originally planned to sell to other companies as a result of sales
activities focusing on selling solar power plants in lots, as well as due to the fact that we were unable to engage
in sales activities for purchasing solar power plants on behalf of customers, as we originally planned.
3) Solar Power Plant Operation:
Net sales and segment profit were 227 million yen (a decline of 1.0% YoY) and 72 million yen (an increase of
28.7% YoY), respectively, supported by steady electricity sale by large-scale solar power plants in Shimonoseki,Tateyama, and Sodegaura, and as a result of improvements in profitability by reduction of sales andadministrative expenses.
4) Geothermal Power Plant Operation:
No sale is recorded for the segment.

Due to expenditures, segment profit/loss was 0 million yen (compared tothe segment loss of 20 million yen for the previous fiscal year).

3．Consolidated Financial Statements(1) Consolidated Balance sheets(In thousand yen)
FY2016 (consolidated)(As of March 31,2016)

FY2017 (consolidated)(As of March 31,2017)

AssetsCurrents Assets
Cash and deposits
Notes and accounts receivable - trade

2,736,869
984,590

2,155,286
1,456,254

Merchandise and finished goods
Work in process

57,814
147,52277,731
156,735

Raw materials and supplies
Deferred tax assets

112,786
54,664

108,699
30,489Other-CA

126,643

102,582

4,220,891

4,087,780

462,220

458,035△305,319△314,285

156,901

143,750

1,599,679

1,540,903△192,247△219,485

1,407,431

1,321,418

718,289

727,831△630,131△653,695

88,157

74,136652,400
159,018

405,987
638,8172,463,909

2,584,111

231,694

212,124

Soft WareOther intangible assets

77,393066,5190Total intangible assets

309,088278,644

16,601－

22,772

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation-buildings and structures
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation-machinery, equipment and vehicles
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation-tools, furniture and fixtures
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Business rights

Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets

39,678103,61472,660

Other-IOA
Allowance for doubtful accounts

120,960△8,700285,649△8,700Total investments and other assets

168,540

475,996

2,941,538

3,338,752

1,177
－

1,742
6,316

Total non-current assets
Deferred assets
Share issuance cost
Development expenses
Business commencement expenses
Total deferred assets
Total assets－

11,666

1,177

19,725

7,163,607

7,446,258

(In thousand yen)
FY2016 (consolidated)(As of March 31,2016)

FY2017 (consolidated)(As of March 31,2017)

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

321,042974,176

523,660
404,800

Current portion of bonds
Current portion of long-term loans payable

20,000400,940

20,000561,353

Lease obligations
Accounts payable - other49,367
100,642

74,220164,730

Income taxes payable
Advances received

28,165
12,21057,78730,075

Provision for bonuses
Provision for product warranties

37,241
9,212

59,986
14,295

Other-CL

95,502130,0122,048,500

2,040,922

Bonds payable
Long-term loans payable

20,000592,004

614,329

Lease obligations
Deferred tax liabilities

925,239320

1,245,516
2,584

Net defined benefit liability
Asset retirement obligations

145,592
37,024

163,664
26,225

Other-NCL

100,173

91,795

Total current liabilities
Non-current liabilities

Total non-current liabilities－

1,820,355

2,144,115

3,868,855

4,185,037

Capital stock
Capital surplus

1,677,088
1,057,014

1,677,088
994,039

Retained earnings
Treasury shares

610,512△61,279

655,150△61,312

Total shareholders' equity

3,283,336

3,264,965

Foreign currency translation adjustment

677△5,587329△5,606

Total accumulated other comprehensive income△4,910△5,276

16,326

1,532

3,294,752

3,261,220

7,163,607

7,446,258

Total liabilities
Net assets
Shareholders' equity

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

Subscription rights to shares
Total net assets
Total liabilities and net assets

(2)Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(In thousand yen)
FY2016FY2017(April 1, 2015 – March 31, 2016)(April 1, 2016 – March 31, 2017)

Net sales
Cost of sales

7,259,803
5,710,166

4,443,227
3,151,189

Gross profit

1,549,637

1,292,038

Selling, general and administrative expenses

1,269,938

1,102,811

Operating income

279,699

189,226

Non-operating income
Interest income

361

6,715

Dividend income
Settlement received

976
1,700

224
－

Other-NOI

12,8609,436

Total non-operating income

15,89816,376

69,406
3,158

79,525
5,092－

11,236

11,704

3,248

Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted forusing equity method
Other-NOE
Total non-operating expenses

84,27099,102

211,327

106,500

Gain on sales of non-current assets
Gain on reversal of subscription rights tosharesOther-EI

57,605

1,652

2,914

16,326－

312

Total extraordinary income

60,52018,291

－
－

5,415
8,820
－

Ordinary income
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on valuation of investment securities
Other-EL

2,318
378

Total extraordinary losses

2,696

14,461

Profit before income taxes

269,150

110,329

Income taxes - current

64,105225

Income taxes - deferred

39,716

68,872△3,180Total income taxes

103,82165,691

Profit165,329

44,637－－

165,329

44,637

Profit attributable to non-controlling interests
Profit attributable to owners of parent

Consolidated statement of comprehensive income(In thousand yen)
FY2016FY2017(April 1, 2015 – March 31, 2016) (April 1, 2016 – March 31, 2017)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment

165,329

44,637△3,876△347△5,587△18△9,464△366

Comprehensive income

155,864

44,271（Profit attributable to）
Comprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

155,864

44,271--

Total other comprehensive income

3．Information regarding net sales, income or loss, assets, liabilities, and other items for each reportable segment
FY2015 (April 1, 2015 _ March 31, 2016)(In thousand yen)
Reportable Segment
Electronic andRenewable
Geothermal
CommuniSolar Power
Energy System
Power Plant
cation Device
Plant Business
Sales BusinessBusiness
Bsiness

Total

Adjustment
amount(Note 1)

Value
presented inconsolidated
financialstatements

Net Sales
Sales to external customers
Internal sales or Transfers
between segments
Total
Segment income (loss)
Segment assets

2,091,187

4,938,356

230,259―

7,259,803―

7,259,803

17,152

26,511――

43,664△43,664―

2,108,340

4,964,867

230,259―

7,303,468△43,664

7,259,803△11,638

286,687

56,647△20,988

310,707△31,007279,6992,520,655

1,083,500

2,698,598

41,045

6,343,800

819,807

7,163,607

91,023

1,075

91,471―

183,570

3,037

186,60759,32912,824394,499

123,142589,795△3,757

586,038

Other items
Depreciation
Increase in property, plantand equipment andintangible assets

Notes: 1. (1) The adjustment of −31,007 thousand yen to segment income (loss) consists of −4,773 thousand yen for unrealized
losses, −389 thousand yen for depreciation, 1,057 thousand yen for elimination of transactions between segments, and−26,902 thousand yen for group management division losses not allocated to operating segments.
(2) The adjustment of 819,807 thousand yen to segment assets consists of 826,356 thousand yen for group management divisionassets not allocated to operating segments and −6,548 thousand yen for elimination of transactions between segments.
2. Segment income is from the operating income on the consolidated financial statements with adjustments.

FY2015 (April 1, 2015 _ March 31, 2016)(In thousand yen)
Reportable Segment
ElectronicandRenewable
Geothermal
CommuniSolar Power
Energy System
Power Plant
cationPlant Business
Sales BusinessBusiness
DeviceBsiness

Total
Electronic andCommunication Device
Bsiness

Adjustment
amount(Note 1)

Value
presented inconsolidated
financialstatements

Net Sales
Sales to external customers

2,605,399

1,610,046

227,781―

4,443,227―

4,443,227―

49,403――49,403△49,403―2,605,399

1,659,449

227,781―

4,492,631△49,4034,443,227

245,987

110,82272,928△503

429,234△240,007

189,226

3,225,830

460,433

2,932,422

56,9506,675,637

770,620

7,446,258

78,982

7,669

88,072―

174,723

2,568

177,292

Equity in loss of affiliates――△ 11,236―△ 11,236―△ 11,236

Impairment loss

―

―

8,820

―

8,820

―

8,820

―

―

103,614―103,614―103,614

39,40936,974

518,6215,473

600,478△ 5,000

595,478

Internal sales or Transfers
between segments
Total
Segment income (loss)
Segment assets
Other items
Depreciation

Investment to equity
method affiliates
Increase in property, plantand equipment andintangible assets

Notes: 1. (1) The adjustment of −240,007 thousand yen to segment income (loss) consists of −44,331 thousand yen for unrealized
losses, −140,000 thousand yen for Dividends from consolidated subsidiaries and −5,000 thousand yen for eliminationof transactions between segments, and −50,675 thousand yen for group management division losses not allocated tooperating segments.
(2) The adjustment of 770,620 thousand yen to segment assets consists of 819,004 thousand yen for group management
division assets not allocated to operating segments, −13,968 thousand yen for elimination of transactions between
segments and −34,415 thousand yen for adjustment on estimated recoverable amount of deferred tax assets inconsolidated tax entity..