FY2020 March The 3Q Summary of Accounting Statements[Japanese Standards] (consolidated)

February 14, 2020
Tokyo
Code No.
6838
URL
https://www.tmex.co.jp
Representative(Title)President(Name)
Toru Masuzawa
Contact person(Title)Director(Name)
Keita Masuyama (TEL) 03-6435-6933
Quarterly report to be submitted： November. 14, 2019
Dividends payment to be started： －Preparation of supplementary explanation document for the quarterly accounting statement：Yes
Explanatory meeting for the quarterly accounting statement：Yes
Listed company nameTamagawa Holdings Co., Ltd.

Exchange(amount under. mil yen rounded off))

1.Consolidated performance of FY 2020 Mar.: 3Q (from Apr 1, 2019 to Dec. 31, 2019)(1) Consolidated management result (cumulative)
Sales amountmil.yen(% indication: change compared with the same quarter of the previous year)
Quarterly profit
Operating profit
Ordinary profit
belonging to the parent
company’s shareholders%

mil.yen%mil.yen%FY2020 Mar. 3Q
3,633
46.8
391 2,351.8
278－
FY2019 Mar. 3Q
2,475
24.0
15
－
△145
－
(Note) Comprehensive profit: FY2020 Mar. 3Q
215mil.yen( －%)FY2019 Mar.3Q △39mil.yen(
Quarterly net profit per
Quarterly net profit per
share after issuable
share
share adjustment
yen

FY2020 Mar. 3Q
FY2019 Mar. 3Q

mil.yen

216
△37
－%)

%

－
－

yen

51.18
△8.73

45.90
－

(2) Consolidated financial status
Gross asset
FY2020 Mar. 3Q
FY2019 Mar.
(Reference) Own capital:

Net asset
mil.yenFY2020 Mar. 2Q

Own capital ratio
mil.yen

9,525
9,572
3,642mil yen

%

3,646
3,368
FY2019 Mar.

38.2
35.2
3,364mil yen

2. Status of dividends
Annual dividends
End 1QEnd 2Qyen

FY2019 Mar.
FY2020 Mar.

End 3Q
yen

yen

0.00
0.00

－
－

Term end(Note)

yen

Correction from the dividend forecast recently announced:

yen

5.00

5.00

5.00
～30.005.00～30.00－－

FY2020 Mar. (forecast)

Total

None

3. Consolidated performance forecast of 2020 Mar. (from Apr 1, 2019 to Mar. 31, 2020)(% indication: change compared with the same quarter of the previous year)
Sales amountmil. yen

Operating profit%

mil. yen

Ordinary profit%

Full business year
5,699
48.4
524 242.2(Note) Correction from the performance forecast recently announced:―1―

mil. yen372
None

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

－

319

148.7

73.58

※ 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.
： None② Change of the accounting standard except for ①： None③ Change of the accounting estimate： None④ Redisplay of revision： None(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)**

FY2020 Mar. 3Q

4,597,400shares

FY2019 Mar.

4,476,100shares

FY2020 Mar. 3Q

61,454shares

FY2019 Mar.

61,454shares

FY2020 Mar. 3Q

4,222,055shares

FY2019 Mar.3Q

4,343,145shares

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 Annex (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.

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1. Qualitative information concerning the current quarterly financial statement(1) Explanation on management result
Matters herein concerning the future were determined by our group as of the final day of the current consolidated
accounting year.
While the Japanese economics in the current third quarter consolidated cumulative accounting year continues to be in themild turnaround such 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 fifth-generation mobile phone 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 proposalof our self-developed products by continuously promoting “effort for high added-value products,” “expansion andexploration of 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 wireless transmission ofdata of large volumes.
In the mobile communication field, demands for high-frequency components are increasing including the fifth generation
mobile phones related products.
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, businessuse 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 thefifth-generation mobile phone related market.
Order receipt condition in general electronic and communication device business is increasing compared to the previous
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 photovoltaic power plants and small wind power plants in the renewableenergy system sales business.

We will continue the development / sales activities of photovoltaic power plants, small

wind power plants, etc. for profit expansion.
In the renewable power plant business, each of the already-operating photovoltaic power plants has been selling power ata good rate.

In addition, by generally judging that we can plan to invest for the next business expansion, we sold out

Shimonoseki Toyoura-cho photovoltaic plant in September 2019.

Our group is actively reviewing the general renewableenergy 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 third quarter consolidated cumulative period was
3,256 mil. yen (21.4% increase compared with the same term of the previous year), and the sales amount was 3,633 mil.
yen (46.8% increase compared with the same term of the previous year).

In terms of profit and loss, operating profit was

391 mil. yen (operating profit 15 mil. yen in the same term of the previous year), ordinary profit was 278 mil. yen (ordinary
loss of the same term of the previous year: 145 mil. yen), and the quarterly net loss belonging to the parent company
shareholders was 216 mil. yen by recording 28 mil. yen of adjusted amount including corporate tax, etc. (quarterly net
profit belonging to the parent company shareholders of the same term of the previous year: 37 mil. yen).
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 are stably

increasing and it is expected to shift steadily hereafter. We will continue to promote expansion of our group’s businessfields 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 photovoltaic power plants, we are actively
engaged in development of small wind power plants.

We will continuously endeavor not only to reduce CO2, but also tocontribute to the community and society and to introduce, spread and promote renewable energy by taking advantage of―3―

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 3,197 mil. yen (28.9% increase compared with the same term of the previousyear), sales amount was 2,441 mil. yen (46.4% increase compared with the same term of the previous year), and segment
profit was 221 mil. yen (1,018.0% increase compared with the same term of the previous year).
b. Renewable energy system sales businessAlthough we are focusing on lot selling of mainly photovoltaic power plants, due to decrease of demand for cases ofphotovoltaic power generation according to reduction of the fixed purchase price and amended FIT law, the amount oforders received was 59 mil. yen (70.8% decrease compared with the same term of the previous year), sales amount was
97 mil. yen (70.8% decrease compared to the same term of the previous year), and segment loss was 123 mil. yen(segment loss of the same term of the previous year: 24 mil. yen).
c. Renewable energy plant business
Each of the already-operating photovoltaic power plants in Tateyama City, 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 good rate.

In addition, since we sold out Shimonoseki Toyoura-cho photovoltaic plant in September 2019 bygenerally judging that we can plan to invest for the next business expansion, the sales amount was 1,094 mil. yen(119.7% increase compared with the same term of the previous year) and segment profit was 445 mil. yen (190.0%
increase compared with the same term of the previous year).
(2) Explanation on financial status① Analysis of financial status(Gross assets)
Gross assets in the end of the current third quarter consolidated accounting period resulted in 9,525 mil. yen, decreasingby 46 mil. yen compared to the end of the previous consolidated accounting year.
This is mainly because accounts due, cash and deposit included in others in the current assets decreased althoughproducts in process and raw materials and stored goods increased.
(Liabilities)
Liabilities in the end of the current third quarter consolidated accounting period resulted in 5,879 mil. yen, decreasing
by 324 mil. yen compared to the end of the previous consolidated accounting year.
This is mainly because outstanding consumption tax included in others in the current liabilities and others decreased,
and lease debt decreased due to sellout of Shimonoseki Toyoura-cho photovoltaic plant.
(Net assets)
Net assets in the end of the current third quarter consolidated accounting period resulted in 3,646 mil. yen, increasing
by 277 mil. yen compared to the end of the previous consolidated accounting year.
This is mainly because of record of the quarterly profit belonging to the parent company shareholders.
②Business and financial issues to be addressed
There are no material matters in the business and financial issues to be addressed among those arising in the current
third quarter consolidated accounting period.
③ Research and development activities―4―

Total amount of research and development cost in the current third quarter consolidated accounting period is 133 mil.
yen.
There is no material change in the status of our group’s research and development activities in the current third quarter
consolidated accounting period.
(3) Explanation on the future forecast information including the consolidated performance expectation information
No change in the performance forecast announced on May 20, 2019 for performance forecast.

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2.Consolidated financial statements and Notes(1)Consolidated balance sheet(In thousand yen)
FY 2019 (consolidated)(As of March 31,2019)

3Q FY 2020 (consolidated)(As of December 31,2019)

AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable - trade

1,026,668
1,535,070

938,502
1,533,219

Merchandise and finished goods
Work in process

1,616,585
878,670

3,153,271
1,465,872

Raw materials and supplies
Advance payments - trade

185,023
75,543262,843
97,981Other
Allowance for doubtful accounts

324,495

113,386△14,392△14,392

Total current assets

5,627,664

7,550,684

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

512,094

515,504△331,934△342,910

Buildings and structures, net

180,160

172,593

Machinery, equipment and vehicles

2,575,930

442,073

Accumulated depreciation△237,289△135,671

Machinery, equipment and vehicles, net

2,338,641

306,402

Tools, furniture and fixtures

795,941

822,026△643,663△668,999

152,277

153,027

387,466
17,540387,466
15,945

3,076,086

1,035,435

Intangible assets
Goodwill

39,614

39,183

SoftwareOther

48,205049,7860Total intangible assets

87,82088,969Investments and other assets
Investment securities

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

22,15260,740Long-term loans receivable
Deferred tax assets

45,761
187,140

55,725
216,121

Other
Allowance for doubtful accounts

506,398504,203△8,700△8,700Total investments and other assets

752,754828,090

3,916,660

1,952,495

Share issuance cost
Development expenses

4,909
100

3,409
78

Business commencement expenses

23,335

19,145

Total non-current assets
Deferred assets

Total deferred assets
Total assets―6―

28,345

22,6339,572,670

9,525,813

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

3Q FY 2020 (consolidated)(As of December 31,2019)

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

503,108
50,000563,394
91,660Current portion of long-term loans payable
Lease obligations

464,982
179,152

341,325
170,314

Accounts payable - other
Income taxes payable

151,932
59,636

165,579
93,991

Advances received
Provision for bonuses

444,000
114,905

611,665
38,686

Provision for product warranties
Other

14,257
213,953

14,278
162,684

2,195,928

2,253,580

Long-term loans payable
Lease obligations

231,415
3,132,673

245,775
2,691,229

Deferred tax liabilities
Net defined benefit liability

2,501
187,940

3,862
201,324

Asset retirement obligations
Long-term accounts payable - other

35,193416,612

17,013394,995

1,882

71,8804,008,218

3,626,081

6,204,146

5,879,661

Capital stock
Capital surplus

1,770,627
1,065,912

1,812,823
1,086,035

Retained earnings
Treasury shares

595,043

811,131△61,313△61,313

Total shareholders' equity

3,370,270

3,648,677

Total current liabilities
Non-current liabilities

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

Accumulated other comprehensive income
△724

3,688

Foreign currency translation adjustment△5,085△9,819

Accumulated other comprehensive income△5,810△6,131

4,064

3,605

3,368,524

3,646,151

9,572,670

9,525,813

Valuation difference on available-for-sale securities

Share acquisition rights
Total net assets
Total liabilities and net assets―7―

（(2) Quarterly consolidated statements of income and Quarterly consolidated statements of comprehensive income
Quarterly
Consolidated statements of income
Consolidated third quarter period

Net Sales
Cost of sales

3Q FY2019(from April 1, 2018 to
December 31, 2018)
2,475,900
1,671,344(In thousand yen)
3Q FY2020(from April 1, 2019 to
December 31, 2019)
3,633,701
2,351,975

Gross profit

804,555

1,281,725

Selling, general and administrative expenses

788,572

889,842

Operating profit

15,983391,883

Non-operating income
Interest income

5,543

3,212

Dividend income
Insurance income

494
2,941

324
8,778

102

-

-

14,287

Exchange gain
Share of profit of entities accounted for using equity
method
Other

8,623

4,231

Total non-operating income

17,70630,834

Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodOther

171,505-

134,201
2,106

1,201

907

6,010

7,218

Total non-operating expenses

178,717

144,433△145,027

278,283

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

133,844-

14,754

Total extraordinary income

133,844

14,754-153

Non-operating expenses

Ordinary Profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Other

424

-

Total extraordinary losses

424

153

Profit before income taxes△11,607292,885

Income taxes - current
Income taxes - deferred

15,686
10,645

105,750△28,952

Total income taxes

26,332

76,798△37,939

216,087--△37,939

216,087

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent―8―

Quarterly consolidated statements of comprehensive income
Consolidated third quarter period△37,939(In thousand yen)
3Q FY2020(from April 1, 2019 to
December 31, 2019)
216,087△7,107
5,321△4,734

3Q FY2019(from April 1, 2018 to
December 31, 2018)
Net Profit for the Quarter
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income（breakdown）
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

―9―

4,413

△1,786△320△39,726

215,766△39,726

215,766--

(3) Notes for the quarterly consolidated financial statements(Segment information, etc.)【Segment information】
I. Previous 3Q consolidated cumulative period (from April 1, 2018 to December 31, 2018)
Information concerning the sales amount and the amount of profit or loss per report segment(unit: thousand yen)Amountrecorded in
Adjustedquarterly
amountconsolidated(Note) 1
profit and loss
statement(Note) 2

Report segment
Electronic /Renewablecommunication energy system
device business sales business

Renewableenergygeneration
business

Total

Sales amount
Sales amount to externalclients
Internal sales amount ortransfer amount between
segments

1,668,144

305,176

498,1882,471,508

4,392

2,475,900－

28,126－28,126△28,126－

Total

1,668,144

333,303498,1882,499,635△23,734

2,475,900

Segment profit or loss (△)

19,847△24,388

153,786

149,244△133,261

15,983(Note)
1. Adjusted amount of segment profit or loss (△) △133,261 thousand yen is adjusted amount of unrealized profit △4,681 thousand
yen, adjusted amount of dividends from the consolidated subsidiary △52,500 thousand yen, transaction deletion between segments△6,000 thousand yen, and profit and loss of group management division not distributed to business segment △79,443 thousandyen.
2. Segment profit or loss (△) matches operating loss (△) in the quarterly consolidated profit and loss statement.
II. Current 2Q consolidated cumulative period (from April 1, 2019 to December 31, 2019)
Information concerning the sales amount and the amount of profit or loss per report segment(unit: thousand yen)Amountrecorded in
Adjustedquarterly
amountconsolidated(Note) 1
profit and loss
statement(Note) 2

Report segment
Electronic /Renewablecommunication energy system
device business sales business

Renewableenergygeneration
business

Total

Sales amount
Sales amount to externalclients
Internal sales amount ortransfer amount between
segments

2,441,719

97,291

1,094,690

3,633,701－

3,633,701

－

－

－

－

－

－

Total

2,441,719

97,291

1,094,690

3,633,701－

3,633,701

Segment profit or loss (△)

221,881△123,374

445,987

544,493△152,610

391,883(Note)
1. Adjusted amount of segment profit or loss (△) △152,610 thousand yen is adjusted amount of unrealized profit, etc. 3,213 thousand

yen, adjusted amount of dividends from the consolidated subsidiary △52,500 thousand yen and profit and loss of group management
division not distributed to business segment △103,323 thousand yen.

2. Segment profit or loss (△) matches operating profit in the quarterly consolidated profit and loss statement.

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