May 11, 2018
Company: Tamagawa Holdings, Co., Ltd.
Representative: President, Toru Masuzawa(JASDAQ Code: 6838)
Contact: Management Planning Division, Junya Tokumoto
Tel: 03-6435-6933

Notice on Recording of Special Loss and Revision of Result Forecast
Please be informed of our decision to record the special loss as follows in the consolidated accounting year
ending in March 2018.

Therefore, we give you a notice that we have revised the full-year result forecast weannounced on March 30, 2018 along with the above.

1. Recording of special loss
Tamagawa Energy, Co., Ltd., our consolidated subsidiary is engaged in the renewable energy business, andis mainly conducting procurement and sales activities of photovoltaic facilities as well as investigation andconsideration of possibility of further renewable energy besides photovoltaic.

As a part thereof, we areprocessing mainly in Ibusuki City, Kagoshima Prefecture the approach for commercialization of geothermal
binary power generation using geothermal heat which is our base load power source as stated in “Notice onStarting of Excavating Work of Spring Source in the Candidate Land for Geothermal Plant in Ibusuki City,
Kagoshima Prefecture” announced on June 19, 2017, and a part of such excavating work was completed
during the current consolidated accounting term.

As a result, although we could not obtain as much steam

as we had initially expected, there was hot water in the production well and we have conducted verification of
the power generation system using such hot water in place of steam from various angles forcommercialization.

However, it has been difficult to create the accurate income and expenditure plan up to

the moment, and therefore, we decided to record the impairment loss in the business year ending in March2018 based on the “accounting standard concerning impairment of fixed asset” by strictly estimating the assetvalue.

Amount of the impairment loss concerning this matter is 110 million yen.

We record the impairment

loss as the accounting process this time, but we would like to carefully consider alternate ideas from various
angles such as hybrid power generation combined with hot water generation and biomass power generationand determine whether to continue this project.

2. Revision of the consolidated result forecast
Revision of full-year consolidated result forecast figure for the business year ending in March 2018 (from April
1, 2017 ~ March 31, 2018)(unit: mil. yen)
Sales

OperatingOrdinaryamountprofit

profitCurrent net profit
attributable to parent
company’s
shareholders

Current net
profit per share

3,311

33

△67

△86yen△1.99

Current revision (B)

3,255

53

△63

△146

△3.49

Change amount (B-A)

△55

193

△60－

Change rate

△1.7%

56.9%

－－－

(Reference) Previous
term result(Business yearending in March2017)

4,443

189

106

44

1.06

Previous forecast (A)Reason for revision
In addition to above 1. “Recording of special loss,” as a result of finishing aggregation of closing figure in theelectronic communication device business, the sales amount fell short of the initial forecast, but the operating
profit and ordinary profit exceeded the full-year result forecast thanks to better profit rate than expected byapproach of improvement of productivity.
As for the current net profit attributable to the parent company, recording of impairment loss range was madeas 110 million yen, but loss ended up being compressed thanks to an impact of tax effect accountingincorporated with the result forecast of the business year ending in Mach 2019.

(Note) The above result forecast has been prepared based on the information currently available, and may bedifferent from the expected figure due to various factors hereafter.