FY2023 March The 2Q Summary of Accounting Statements[Japanese Standards] (consolidated)
November 11, 2022
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：
November. 12, 2022
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.: 2Q (from Apr 1, 2022 to September 30, 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.yenmil.yen

%

△63.0
△383
－
△364
28.9
189
235.1
161
△313mil.yen－％) FY2022 Mar. 2Q(
Quarterly net profit per
Quarterly net profit per
share after issuable
share
share adjustmentyen
yen△56.59
－
21.02
20.45

%

mil.yen

%

－
603.1

FY2023 Mar. 2Q
1,075
FY2022 Mar. 2Q
2,907(Note) Comprehensive FY2023 Mar. 2Q
profit:FY2023 Mar. 2Q
FY2022 Mar. 2Q

mil.yen

%

△335
－
120
275.6
126mil.yen 352.9％)((2) Consolidated financial status
Gross asset

Net asset

mil.yen
8,165
8,359
5,177mil.yen

FY2023 Mar. 2Q
FY2022 Mar.
(Reference)Own capital: FY2023 Mar. 2Q

Own capital ratio

mil.yen
5,187
5,442
FY2022 Mar. 2Q

%
63.4
65.0
5,432mil.yen

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

End 2Q

Term end

Total

yen

yen

yen

yen

yen

－
－

0.00

－

7.00

7.00

0.00

－

5.00
～30.0
None
(Note)

5.00～30.0

FY2023 Mar. (forecast)(Note)End 3Q

Correction from the dividend forecast recently announced:

3. Consolidated performance forecast of FY 2023 Mar. (from Apr 1, 2022 to September. 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

5,019 △19.5
65
△82.7
3
△98.8
Full business year
～5,813 ～△6.8～166 ～△56.1 ～104 ～△68.4(Note) Correction from the performance forecast recently announced:
None

2
△98.2
～73 ～△50.7

0.5
～12.7

※ 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 P8. 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
FY2023 Mar. 2Q
6,073,900shares(including own shares)
FY2023 Mar. 2Q
61,484shares② Number of term-end own shares③ Average number of midterm shares
FY2023 Mar. 2Q
5,935,028shares(quarterly accumulation)**

FY2022 Mar. 2Q

5,927,900shares

FY2022 Mar. 2Q

61,484shares

FY2022 Mar. 2Q

5,735,739shares

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 p.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.

1. Qualitative information concerning the current quarter financial results(1) Overview of the management result
The matters concerning the future in the text have been determined by Our Group as of the final day of the current
consolidated accounting year.
(1) Financial status and situation of the management result
Although restriction of economic activities has been eased during Covid-19 epidemic, the Japanese economics inthe current second quarter consolidated accumulative period continues to shift with more confusing and uncertain
situation towards the future due to the impact of the global economics given by trend and such perspective of the issues
between US and China, and uncertainty in the policies, global shortage of semiconductors, rising oil prices, etc. as wellas the worsened situation between Russia and Ukraine, deficit trade balance due to weak yen, and higher commodity
prices which were added this year.
Under such economic circumstances, for the electronic and communication device business, in addition to sales
expansion business mainly in the 5G related market and civil services/public related market, through the efforts according
to transition of the time including innovation and enhancement of the website with the purpose of increase of new clients’inquiries as non-contact type sales (inside sales) due to Covid-19 epidemic, we have been also dedicated to 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 ofbusiness 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, terahertz products, etc. necessary for
wireless transmission of data of large volumes, and we are proactively working such as “Beyond 5G / 6G IndustrialAcademic Cooperation Research,” etc.
In the mobile communication field, since the communication common carriers’ infrastructure investment wascontrolled, the demand for the existing products is decreasing. Therefore, we will aim for and work on sales expansionof infrastructure sharing related devices in the perspective of increasing demand for infrastructure sharing as a method
to expand infrastructure by reducing investment.
In regard to proposals for new clients related to mobile communication facilities for overseas, since various
restrictions due to Covid-19 have been gradually terminated, we have started proposal activities to new clients on aremote basis and face-to-face basis.
Demands for the optical transmission device, digital signal processor, etc. are increasing as business-use wireless,disaster measures and surveillance system in the public filed. We will work on further sales expansion. Additionally,
we will work on securing long-term and stable order receipt by joining the national project as “National Resilience” fromthe development stage.
In addition, by enhancing proposals of self-developed products along with promotion of active business domain
expansion through marketing the self-developed technology for surveillance units targeting the Drone business market
and joining the private satellite business, we will continue the activities for profit expansion in order to establish thestable business base.
In the renewable energy business, we have worked on development of small wind power plants by leveraging the fundfrom the plant sellout until the previous period, co-financing from banks, and fund such as sustainable loan, etc. In
current second quarter consolidated accumulative period, 17 small wind power plants were newly interconnected in
Hokkaido and Akita Prefectures. We have also decided to newly develop 15 small wind power plants in the good-windcondition area(s) in Hokkaido with the sustainable loan, etc.
In order for the stakeholders surrounding us to secure the precise profit structure and growth, we are foreseeing theearliest introduction of IFRS (International Financial Reporting Standards), aiming to build the unique business model inthe renewable energy business as a domestic company focusing on owning small wind power plants from this period
and expecting to launch various mechanism and structure reformations including the organizations of the same business.
Simultaneously, we will contribute to continuous reduction of greenhouse gas by easing the business risk andaccelerating development of new renewable energy sources with development of small wind power plants of which unit
is small size and risk dispersion and securement of profitability and mobility.
In addition, as the measure after the next period, we will also join the medium and large-sized projects of the large
wind power plant (1.984MW), etc. in Nemuro City, Hokkaido and will also join the small waterpower plant project in Flores
Island, Nusa Tenggara, Indonesia to launch diversification of power source for the future.
As the result of the above, the amount of orders received in the current second quarter consolidated accumulative
period was 1,971 mil. yen (43.0% decrease compared with the same period of the previous year), and the sales amountwas 1,075 mil. yen (63.0% decrease compared with the same period of the previous year). In terms of profit and loss,
operating loss was recorded as 383 mil. yen (the operating profit of the same period of the previous year: 189 mil. yen),ordinary loss was recorded as 364 mil. yen because of the currency gain 57 mil. yen due to rapidly falling yen (theordinary profit of the same period of the previous year: 161 mil. yen), and due to 45 mil. yen of profit from sellout of the
fixed asset recoded as the special profit, the quarterly net loss belonging to the parent company shareholders was 335

mil. yen (the quarterly net profit belonging to the parent company shareholders of the same period of the previous year:
120 mil. yen).
In the electronic / communication device business, we will promote our sales expansion activities mainly in theexisting markets since the demand is stably increasing and is expected to transit steadily also from now on.
Furthermore, we will also proactively expand the business domain by entering a new market. We are also receiving
orders in the new market, and will continue the activities for profit expansion in order to establish the stable businessbase as the entire electronic / communication device business. However, on the other hand, we cannot avoid theeffect of global difficulty in procurement of electronic components, which has been the factor to inhibit the businessperformance such as postponed sales from the plan of the beginning of the period. We will continue to focus on themeasures to resolve difficulty in procurement of components.
Our group is proactively considering development of the general environmental business in addition to the renewableenergy business not only as domestic expansion but also overseas expansion mainly in Southeast Asia, and will
actively conduct investment activities for expansion of the business operation. Our group will further work on CO2
reduction and the measures for global warming with all the Group employees and will proactively disclose information
to the stakeholders surrounding us for ESG management and will take a positive challenge to achieve SDGs goals.
Management result by segments is as follows.
a. Electronic / communication device businessFor electronic / communication device business, we could not avoid the impact despite the measures taken forthe latest difficulty in procurement of electronic components, etc., and due to delayed sales affected by delayeddelivery of some components, we could not reach the plan of the beginning of the period, resulting in the amountof orders received of 1,858 mil. yen (18.8% decrease compared with the same period of the previous year), thesales amount of 963 mil. yen (41.8% decrease compared with the same period of the previous year), and segment
loss of 104 mil. yen (segment profit of the same period of the previous year: 268 mil. yen).
b. Renewable energy system sales business
The small wind power plants and low-voltage solar power plants in Hokkaido we own in current second quarter
consolidated accumulative period have sold power in a good state. However, the sales and segment profit havedecreased as a return action of selling Hokkaido Noboribetsu City Solar Power Plant in the previous period (June2021).
As a result of the above, the amount of orders received was 112 mil. yen (90.3% decrease compared with thesame period of the previous year), sales amount was 112 mil. yen (91.0% decrease compared to the same periodof the previous year), and segment loss was 34 mil. yen (segment profit of the same period of the previous year:
125 mil. yen).

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

2Q FY 2023 (consolidated)(As of September 30,2022)

AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable - trade

2,060,604
2,205,186

1,243,594
1,028,973

Merchandise and finished goods
Goods and products

781,903
1,077,617

1,421,179
1,584,322

Work in proces
Raw materials and supplies

482,925
57,205662,843
80,188Advance payments - trade
Other

172,694△27,692

331,200△29,533

Allowance for doubtful accounts

6,810,444

6,322,768

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

527,933

540,474

Accumulated depreciation△379,316△393,830

Buildings and structures, net

148,617

146,644

Machinery, equipment and vehicles

386,774

386,774

Accumulated depreciation△189,356△197,483

197,417

189,291

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

936,939

1,019,269△766,358△813,042

170,580

206,227

315,686

315,686

0

4,299

832,302862,149

Intangible assets
Goodwill

5,539

5,402

SoftwareOther

57,316
0

57,0450Total intangible assets

62,85662,447

Investments and other assets
Investment securities

186,910359,697

Long-term loans receivable
Deferred tax assets

187,457
108,460

203,867
111,769

Other

139,124

221,656

Allowance for doubtful accounts
Total non-current assets
Deferred assets
Share issuance cost

621,953

896,991

1,517,112

1,821,588

29,98520,010Development expenses
Business commencement expenses

12
1,843

－
1,200

Total deferred assets

31,841

21,2108,359,398

8,165,567

Total assets

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

2Q FY 2023 (consolidated)(As of September 30,2022)

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

700,884
146,655

616,187
133,846

Current portion of long-term loans payable
Lease obligations

267,873
4,965

237,682
4,783

Accounts payable - other
Income taxes payable

211,349
67,92778,061
12,082

Advances received
Provision for bonuses

42,78236,70930,324
17,141

Provision for product warranties
Other

100,980
55,986

11,03948,552

Total current liabilities

150,038

57,009Non-current liabilities

1,786,153

1,246,712

corporate bond

100,000

100,000

Long-term loans payable
Lease obligations

584,527
14,302

1,189,146
11,239Retirement benefit liability
Asset retirement obligations

255,023
15,243262,990
13,083

Other

161,634

154,835

1,130,731

1,731,295

2,916,884

2,978,008

Capital stock
Capital surplus

2,485,241
1,683,419

2,535,100
1,692,213

Retained earnings
Treasury shares

1,273,405△61,373

937,537△61,373

Total shareholders' equity

5,380,693

5,103,477

Valuation difference on available-for-sale securities

15,354△44,498

Foreign currency translation adjustment

36,285

118,398

Accumulated other comprehensive income

51,63973,89910,180

10,1805,442,513

5,187,558

8,359,398

8,165,567

Fixed liabilities

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

Accumulated other comprehensive income

Share acquisition rights
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 first quarter period(In thousand yen)
2Q FY 2022 (consolidated)(As of September 30,2021)

2Q FY 2023 (consolidated)(As of September 30,2022)

Net Sales
Cost of sales

2,907,778
2,079,365

1,075,761
793,721

Gross profit

828,413282,039

Selling, general and administrative expenses

638,441

665,444

Operating profit (loss (△))

189,972△383,404

1,546

2,514

Insurance income

258
3,369

290
4,440

Gain on forgiveness of debts
Other

－
8,280

57,591
5,638

Total non-operating income

13,45570,475

16,227

12,984

3,457

－

1,976

2,140

11,063－

10,387
18,900Non-operating income
Interest income
Dividend income

Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Interest expenses

9,314

7,032

42,03951,443

161,387△364,372－

45,000Total extraordinary profit
Extraordinary loss－

45,000

office relocation costs
Total extraordinary loss

－
－

8,139
8,139

161,387△327,512

11,90028,9097,385
970

Foreign exchange losses
Ordinary profit (loss (△))
special profit
Gain on sale of fixed assets

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

40,8108,356Profit (loss (△))
Profit (loss (△)) attributable to non-controlling interests

120,577△335,868

120,577△335,868

Quarterly consolidated statements of comprehensive income
Consolidated first quarter period(In thousand yen)
2Q FY 2022 (consolidated)(As of September 30,2021)
Profit (loss (△))
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income

2Q FY 2023 (consolidated)(As of September 30,2022)

120,577△335,868

397
5,059

△59,852
82,113

5,457

22,260Comprehensive income

126,034△313,608（breakdown）
Comprehensive income attributable to owners of parent

126,034△313,608

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 September 30, 2021)
Information concerning the sales amount and the amount of profit or loss per report segment(unit: 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

547,867－

547,867－

547,867

Government office

410,437－

410,437－

410,437

Public project

354,170－

354,170－

354,170

FA・Measurement・Other

Total

Sales amount

342,523－

342,523－

342,523

Solar power plant－

1,051,182

1,051,182－

1,051,182

Wind power plant
Revenue from
Customers
Other profit－

197,414

197,414－

197,414

1,654,998

1,248,597

2,903,595－

2,903,595

－

4,182

4,182

－

4,182

Sales amount to external clients

1,654,998

1,252,780

2,907,778－

2,907,778

Between segments
Internal sales or transfer amount

－

－

－

－

－

1,654,998

1,252,780

2,907,778－

2,907,778

268,748

125,418

394,166△204,194

189,972

Total
Segment profit(Note) 1.

Contracts

with

Adjustment amount of segment profit △204,194 thousand yen is △204,194 thousand yen of the cost ofgroup management division which is not distributed to the business segment.
2. Segment profit matches the operating profit in the quarterly consolidate profit and loss statement.

Ⅱ. Current 2Q consolidated cumulative period (from April 1, 2022 to September 30, 2022)
Information concerning the sales amount and the amount of profit or loss per report segment(unit: 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

331,487－

331,487－

331,487

Government office202,933－

202,933－

202,933

Public project

229,580－

229,580－

229,580

FA・Measurement・Other

199,030－

199,030－

199,030－

80,59380,593－80,593－

26,59926,599－26,599963,032

107,1931,070,226－

1,070,226

－

5,535

5,535

－

5,535

Sales amount to external clients

963,032

112,728

1,075,761－

1,075,761

Between segments
Internal sales or transfer amount

－

－

－

－

－

963,032

112,728

1,075,761－

1,075,761△106,331△34,881△141,213△242,191△383,404

Total

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

Contracts

with

Total
Segment profit(Note) 1.

Adjustment amount of segment loss (△) △242,192 thousand yen is △242,192 thousand yen of the cost ofgroup management division which is not distributed to the business segment.
2. Segment loss (△) matches the operating loss in the quarterly consolidate profit and loss statement.

(Profit understanding related)

Information on dissolved the profit arising from the agreement with clients shall be as described in “Notes(segment information, etc.).”