FY2023 March The 3Q Summary of Accounting Statements[Japanese Standards] (consolidated)
February 14,2023
Tokyo
Code No.
6838
URL
https://www.tmex.co.jp
Representative(Title) President(Name) Toru Masuzawa
Contact person(Title) Finance & Accounting Manager (Name) Yasuhisa Masuda (TEL) 03-6435-6933
Quarterly report to be submitted：
Februay. 14, 2023
Dividends payment to be started：－
Preparation of supplementary explanation document for the quarterly accounting statement：No
Explanatory meeting for the quarterly accounting statement：No
Listed company nameTamagawa Holdings Co., Ltd.

Exchange(amount under. mil yen rounded off)

1.Consolidated performance of FY 2023 Mar.: 3Q (from Apr 1, 2022 to December 31, 2022)(1) Consolidated management result (cumulative)(% indication: change compared with the same quarter of the previous year)
Quarterly profit
Operating profit
Ordinary profit
belonging to the parent
company’s shareholders

Sales amountmil.yen%mil.yen%mil.yen%mil.yen%FY2023 Mar. 3Q
1,908 △54.0
△477
－
△484
－
△460
－
FY2022 Mar. 3Q
4,151
25.3
231
57.3
196
113.6
139
100.8
(Note) Comprehensive profit: FY2023△463mil.yen (－％) FY2022 Mar. 3Q
157mil.yen ( 141.1％)
Mar. 3Q
Quarterly net profit per
Quarterly net profit per
share after issuable
share
share adjustment
FY2023 Mar. 3Q
FY2022 Mar. 3Q

mil.yenmil.yen△77.19
24.24

－
23.29

(2) Consolidated financial status
Gross asset

Net asset

mil.yen
8,216
8,359
5,026mil.yen

FY2023 Mar. 3Q
FY2022 Mar.
(Reference)Own capital: FY2023 Mar. 3Q

Own capital ratio

mil.yen
5,037
5,442
FY2022 Mar. 2Q

%
61.2
65.0
5,432mil.yen

2. Status of dividends
Annual dividends
End 1QFY2022 Mar.
FY2023 Mar.

End 2QEnd 3Q

Term end

Total

yen

yen

yen

yen

yen

－
－

0.00
0.00

－
－

7.00

7.00

5.00
～30.005.00～30.00

FY2023 Mar. (forecast)(Note) Correction from the dividend forecast recently announced:

None (Note)

3. Consolidated performance forecast of FY 2023 Mar. (from Apr 1, 2022 to December. 30, 2023)(% indication: change compared with the same quarter of the previous year)
Sales amountmil. yen

Operating profit%

mil. yen

Ordinary profit%

mil. yen

Current net profit
Current net profit
belonging to the parent
per sharecompany’s shareholders%
mil. yen%
yen

2,896 △53.6
△550
△605
△580
△97.5
Full business year－－－
～3,236 ～△48.1 ～△490
～△546
～△521
～△87.5(Note)
Correction from the performance forecast recently announced:
Yes(Note)
Please see the “notice on correction of expected consolidated performance for the full year ending March 2023”
announced today for details.

※ 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.
： Yes
② Change of the accounting standard except for ①： None③ Change of the accounting estimate： None④ Redisplay of revision： None(Note)For details, see attached document P9. Quarterly Consolidated Financial Statements and Main Notes (3) Notes
to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)”.
(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)**

FY2023 Mar. 3Q

6,073,900shares

FY2023 Mar. 2Q

5,927,900shares

FY2023 Mar. 3Q

61,484shares

FY2023 Mar. 2Q

61,484shares

FY2023 Mar. 3Q

5,960,917shares

FY2023 Mar. 2Q

5,764,314shares

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 drasticallyvary due to various factors. Please see p.4 “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.

1. Qualitative information on the results for this quarter(1) Explanation on management results
Matters regarding the future in the text are based on the judgement of our Company group as of the last date of thisquarterly consolidated accounting period.
(1) Financial situation and aspect of management results
Although restrictions on economic activities due to the expansion of novel coronavirus (COVID) infection havebeen relaxed, the economy of our country during the consolidated cumulative period for the third quarter has beenfurther unsettled and transitioning in an uncertain situation, fueled by the trend and outlook of the US-China issue,
uncertainty relating to global politics, impact from worldwide shortage of semiconductors, high price of crude oil, etc.
on the world economy, worsening of the Russia/Ukraine war in this fiscal year, and price increases of various goods
including oil, electricity and gas.
Under such managerial environment, we focused on sales expansion mainly in the 5G-related market,
governments and public-related markets with respect to the electronics/communications equipment business, andalso emphasized on new markets and customer development to receive orders from a new domain as no-contact
sales (inside sales) due to COVID to meet the changing need of the times such as website renewal/enrichment toincrease new customers and their inquiries.
Proposal of products developed on our own was also strengthened while continuously promoting “efforts for highvalue added to products,” “expansion/cultivation of new business domain” and “joint development with affiliates.”
As a result, newly developed customers and inquiries from new markets increased, including optical products
used for various transceivers in addition to traditional analogue high-frequency products as well as digital signal
processing devices essential for high-speed signal processing, millimeter wave products necessary for wirelesstransmission of mass data, terahertz band frequency products, etc., and we are aggressively engaging in efforts like
“Beyond 5G/6G industry-university joint research.”
In the field of mobile communications, the demand for existing products is in trend of decrease due to the
influence of infrastructure investment control on each carrier; therefore, we are targeting sales expansion ofequipment relating to infrastructure sharing by expecting increased demand of infrastructure sharing as a method tolimit investment and expand infrastructure.
With respect to mobile communications equipment for overseas, various restrictions from COVID have been
gradually loosened and we resumed remote and in-person proposal activities to new customers.
In the public area, the demand of transceivers, optical transmission devices for disaster prevention andsurveillance systems, digital signal processing devices, etc. has been increasing and we are targeting further sales
expansion. We also make efforts to ensure long-term and stable order receipts by participating in national projects
as the “Measures Concerning National Resilience” from the development stage.
Other than that, we plan to promote aggressive expansion of business domains including implementation oftechnology developed on our own for surveillance units targeting the drone business market, participation in theprivate satellite business, etc., and at the same time continue activities for profit expansion for our Company groupto establish the stable business foundation for the overall electronics/communications equipment business byemphasizing the proposal of products developed on our own.
In the renewable energy business, we have been engaging in development of small-size wind power plants by
utilizing proceeds by selling power plants up to the previous periods, syndicated loan by banks, sustainablefinancing, etc. During the consolidated cumulative period for the third quarter, 28 units of small-size wind power
plants were newly interconnected in Hokkaido and Akita. 14 units of small-size wind power plants will also be
newly developed in areas with good wind conditions in Hokkaido with sustainable financing, etc. Furthermore, 30
units of small-size wind power plants will be newly developed with a green loan in the form of a syndicated loan.
This green loan limits its use to development of small-size wind power plants and transparency is ensured with
reporting of fund usage and actual performance after financing. For this case, a second opinion was acquired from
R&I (Rating and Investment Information, Inc.) with respect to adequateness as a green loan.
To ensure elaborate profit structure and growth potential for stakeholders in our company, we started reformationof various organizations and structures including the organization for this business in order to create the uniquebusiness model in the renewable energy business as a domestic company mainly including ownership of small-size
wind power plants starting this period, in anticipation of implementation of IFRS (international financial reporting
standards) within the shortest time. At the same time, we contribute to continuously reduce greenhouse gases bydeveloping small-size wind power plants with small per-unit size to reduce the business risk by ensuring risk
diversification and profitability/mobility and accelerating development of new renewable power sources.
As measures for the upcoming periods, we plan to engage in diversification of power sources for the future, byparticipating in medium- and large-scale projects such as large-size power plants (1.984MW) in Nemuro City,
Hokkaido as well as in small water power plant projects in Flores Island, Nusa Tenggara Timur, Indonesia.

Based on the above, the amount of orders received during the consolidated cumulative period for the third
quarter was 3,456 million yen (a 25.5% decrease from the same period of the previous year) and the sales was
1,908 million yen (a 54.0% decrease from the same period of the previous year). Regarding the profit and loss,
the operating loss was 477 million yen (the operating profit for the same period of the previous year was 231 millionyen), the ordinary loss was 484 million yen after recording 38 million yen of foreign exchange profit from theinfluence of rapid depreciation of yen (the ordinary profit for the same period of the previous year was 196 millionyen), and the quarterly net loss attributable to stockholders of the parent company was 460 million yen afterrecording 45 million yen of gain on sale of fixed assets as extraordinary profit (the quarterly net profit attributable tostockholders of the parent company for the same period of the previous year was 139 million yen).
For the electronics/communications equipment business, demand continues to grow steadily and is expected toremain strong; therefore, we continue to promote sales expansion activities in existing markets. We also promote
aggressive expansion of the business domain by entering new markets. We started to receive orders from newmarkets and will continue activities to increase profits for our Company group to establish the stable businessfoundation in the overall electronics/communications equipment business. On the other hand, it is not possible to
avoid the influence of difficulties in procuring electronic parts in the world and the sales expected at the beginning of
the period has been delayed, making it a factor to suppress performance. We will continuously make efforts totake measures to resolve difficulties in material procurement.
Our Company group is considering to aggressively engage in overseas countries mainly in Southeast Asia
without remaining in Japan not only for the renewable energy business but also for the overall environmental
business, and will work on investment activities to expand operations of this business. Our Company group will
make efforts to take measures for CO2 reduction and global warming more than ever along with all employees in
the group and challenge ourselves to positive information disclosure for ESG management as well as foraccomplishment of SDG goals.
Management results by segment are as follows.
a. Electronics/communications equipment businessWe took measures for recent difficulties in procuring electronic parts, etc. in the electronics/communications
equipment business, but were unable to avoid the influence. The sales and segment profit did not reach theplan at the beginning of the period due to sales being pushed back to the next period resulting from delay indelivery of some parts, i.e., the amount of orders received was 3,254 million yen (a 4.6% increase from thesame period of the previous year), the sales was 1,706 million yen (a 32.3% decrease from the same periodof the previous year), and the segment loss was 70 million yen (the segment profit was 368 million yen for thesame period of the previous year).
b. Renewable energy business
Small-size wind power plants and low-pressure solar power plants we own in Hokkaido have been
continuously selling electric power during the consolidated cumulative period for the third quarter. Although
low-pressure solar power plants were sold, the sales and segment profit decreased due to the push-back fromselling the solar power plant in Noboribetsu City, Hokkaido during the previous period (June 2021)
Based on the above, the amount of orders received was 202 million yen (an 86.8% decrease from the same
period of the previous year), the sales were 202 million yen (an 87.6% decrease from the same period of theprevious year), and the segment loss was 78 million yen (the segment profit for the same period of theprevious year was 158 million yen).

2.Consolidated financial statements and Notes(1)Consolidated balance sheet(In thousand yen)
FY 2022 (consolidated)(As of March 31,2022)

3Q FY 2023 (consolidated)(As of December 31,2022)

AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable - trade

2,060,604
2,205,186

890,619
1,026,448

Merchandise and finished goods
Goods and products

781,903
1,077,617

1,774,015
1,455,915

Work in proces
Raw materials and supplies

482,925
57,205

747,386
72,266

Advance payments - trade
Other

172,694△27,692

368,551△28,538

Allowance for doubtful accounts

6,810,444

6,306,665

Accumulated depreciation

527,933△379,316

552,456△395,017

Buildings and structures, net

148,617

157,438

Machinery, equipment and vehicles

386,774△189,356

386,774△201,736

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

Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land

197,417

185,038

936,939

1,085,351△766,358△834,441

170,580

250,910315,686

315,686

0

11,763

832,302920,837

5,539
57,316

5,333
56,2580062,856

61,592

Investment securities
Long-term loans receivable

186,910
187,457

381,977
203,867

Deferred tax assets
Other

108,460
139,124

109,852
215,478

Allowance for doubtful accounts

621,953

911,177

1,517,112

1,893,606

Share issuance cost
Development expenses

29,98512

15,194－

Business commencement expenses

1,843

878

Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets

Total non-current assets
Deferred assets

Total deferred assets
Total assets

31,841

16,0738,359,398

8,216,345

(In thousand yen)
FY 2022 (consolidated)(As of March 31,2022)

3Q FY 2023 (consolidated)(As of December 31,2022)

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

700,884
146,655

587,065
119,421

Current portion of long-term loans payable
Lease obligations

267,873
4,965

246,694
4,802

Accounts payable - other
Income taxes payable

211,349
67,927

128,164
7,827

Advances received
Provision for bonuses

42,78236,70925,016
19,732

Provision for product warranties
Other

100,980
55,986

29,11347,496

Total current liabilities

150,038

54,090Non-current liabilities

1,786,153

1,269,426

100,000
584,527

100,000
1,365,741

14,302
255,023

10,126
267,849

15,243
161,634

13,083
152,531

1,130,731

1,909,331

2,916,884

3,178,757

Shareholders' equity
Capital stock

2,485,241

2,535,100

Capital surplus
Retained earnings

1,683,419
1,273,405

1,692,213
813,230

Fixed liabilities
corporate bondLong-term loans payable
Lease obligations
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets

Treasury shares△61,373△61,373

Total shareholders' equity

5,380,693

4,979,171

Foreign currency translation adjustment

15,35436,285△28,332
76,011

Accumulated other comprehensive income

51,63947,67910,180

10,180－555

5,442,513

5,037,587

8,359,398

8,216,345

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

Stock acquisition rightNon-controlling interests
Total net assets
Total liabilities and net assets

(2) Quarterly consolidated statements of income and Quarterly consolidated statements of comprehensive income
Quarterly
Consolidated statements of income
Consolidates thrid quarter period(In thousand yen)
FY 2022 (consolidated)(As of March 31,2022)
Net Sales

3Q FY 2023 (consolidated)(As of December 31,2022)

Cost of sales

4,151,290
2,998,409

Gross profit

1,908,466
1,375,362

1,152,881

533,103

Selling, general and administrative expenses

921,259

1,010,216

Operating profit (loss (△))

231,621△477,112

2,437
305

4,308
347

8,767
－

4,440
38,252Non-operating income
Interest income
Dividend income
Insurance income
Gain on forgiveness of debts
Other

10,0298,028

Total non-operating income

21,53955,37820,01818,065

5,667－

Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
method
Other

2,584

3,080

16,40815,615

Total non-operating expenses
Interest expenses－
11,951

18,9007,464

Foreign exchange losses

56,631

63,125

196,529△484,859

Gain on sale of fixed assets－

45,000Total extraordinary profit－

45,000－8,193

Ordinary profit (loss (△))
special profit

Extraordinary loss
office relocation costs

－

8,193

Profit (loss (△)) before income taxes
Income taxes - current
Income taxes - deferred

196,529△448,052

20,164

8,184

36,596

3,381

Total income taxes

56,76011,566

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

139,768△459,618－

555

Profit (loss (△)) before income taxes

139,768△460,174

Total extraordinary loss

Quarterly consolidated statements of comprehensive income
Consolidated thrid quarter period(In thousand yen)
FY 2022 (consolidated)(As of March 31,2022)
Profit (loss (△))
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income（breakdown）
Quarterly comprehensive income attributable toshareholders of parent company
Quarterly comprehensive income attributable to noncontrolling interests

3Q FY 2023 (consolidated)(As of December 31,2022)

139,768△459,618

1,566
15,896△43,687
39,726

17,463△3,960157,231△463,579

157,231△464,135－

555

Notes for the quarterly consolidated financial statements(Notes for precondition of continuing company): NA
Ⅰ. Current 2Q consolidated cumulative period (from April 1, 2021 to December 30, 2021)
Information concerning the sales amount and the amount of profit or loss per report segment(In thousand yen)Amount recordedin quarterly
Adjusted amount consolidated(Note) 1
profit and loss
statement (Note)2

Report segment
Electronic /communication
device business

Renewableenergy business

Mobile communication infrastructure

905,866－

905,866－

905,866

Government office598,900－

598,900－

598,900

Public project

550,376－

550,376－

550,376

FA・Measurement・Other

464,741－

464,741－

464,741－

1,114,398

1,114,398－

1,114,398－

510,572

510,572－

510,572

2,519,884

1,624,970

4,144,854－

4,144,854

－

6,435

6,435

－

6,435

2,519,884

1,631,406

4,151,290－

4,151,290

－

－

－

－

－

2,519,884

1,631,406

4,151,290－

4,151,290

368,912

158,096

527,008△295,387

231,621

Total

Sales amountSolar power plant
Wind power plant
Revenue from
Customers
Other profit

Contracts

Sales amount to external clients
Between segments
Internal sales or transfer amount
Total
Segment profit

with(Notes) 1. The adjusted amount of segment profit △295,387 thousand yen represents the cost for group management
department △295,387 thousand yen unallocated to the business segment.
2. The segment profit is consistent with the operating profit on the consolidated quarterly income statement.

Ⅱ. Current 2Q consolidated cumulative period (from April 1, 2022 to December 30, 2022)
Information concerning the sales amount and the amount of profit or loss per report segment(In thousand yen)Amount recordedin quarterly
Adjusted amount consolidated(Note) 1
profit and loss
statement (Note)2

Report segment
Electronic /communication
device business

Renewableenergy business

Mobile communication infrastructure

601,124－

601,124－

601,124

Government office345,829－

345,829－

345,829

Public project

426,698－

426,698－

426,698

FA・Measurement・Other

332,540－

332,540－

332,540－

145,710

145,710－

145,710－

48,30648,306－48,306

1,706,192

194,016

1,900,209－

1,900,209

－

8,256

8,256

－

8,256

Sales amount to external clients

1,706,192

202,273

1,908,466－

1,908,466

Between segments
Internal sales or transfer amount

－

－

－

－

－

1,706,192

202,273

1,908,466－

1,908,466△70,023△78,742△148,765△328,346△477,112

Total

Sales amountSolar power plant
Wind power plant
Revenue from
Customers
Other profit

Contracts

Total
Segment profit

with(Notes) 1. The adjusted amount of segment loss (△) △328,346 thousand yen represents the cost for groupmanagement department △328,346 thousand yen unallocated to the business segment.

2. The segment loss (△) is consistent with the operating loss on the consolidated quarterly income statement.
(Revenue recognition-related)
Information on breakdown of profits generated from contracts with customers is as described in the “notes (segment
information, etc.)”