FY Mar. 2018

Summary of Accounting Statements [Japanese Standards] (consolidated)
May 14, 2018

Listed company nameTamagawa Holdings Co., Ltd.

Code No.

6838

Representative(Title)Contact person(Title)ExchangeTokyo

URL http://www.tmex.co.jp
President
Finance and accounting
division manager

Ordinary shareholders’ meeting to be held: June 28, 2018
Securities report to be submitted:
June 28, 2018

(Name)

Toru Masuzawa(Name)

Katsuya Kubo:

03-6435-6933

Dividends payment to be started:

Preparation of supplementary explanation document for the accounting statement
Explanatory meeting for the accounting statement

(TEL)

Yes

(

June 29, 2018

: Yes
For institutional investors / analysts )(amount under mil. yen rounded off)

1. Consolidated performance of FY Mar. 2018 (from Apr 1, 2017 to Mar 31, 2018)(1) Consolidated management result(% indication: change compared with the same quarter of the previous year)

Sales amountFY Mar. 2018
FY Mar. 2017

Operating profit

Current net profit attributable to theparent company’s shareholders

Ordinary profit

mil. yen％mil. yen％mil. yen%mil. yen

%

3,255
4,443

△26.7
△38.8

53
189

△71.9
△32.3

△63
106

－
△49.6

△146
44

－
△73.0

(Note) Comprehensive profit△150 mil. yen (FY Mar. 2018

Current net profit per
share
FY Mar. 2018
FY Mar. 2017

－ %)Current net profit per share after
dilutive share adjustment

44 mil. yen ( △71.6 %)FY Mar. 2017

Current net profit ratio ofown capital

Ordinary margin ofgross asset

Operating margin ofsales amount

yen

yen

％

％

％

△3.48
1.06

－
1.06

△4.5
1.4

△0.7
1.5

1.6
4.3

(Reference) Investment profit on equity method

FY Mar. 2018

△5 mil. yen△11 mil. yen

FY Mar. 2017(2) Consolidated financial status
Gross asset

Net asset

FY Mar. 2018
FY Mar. 2017
(Reference) Own capital

Capital ratio

Net asset per sharemil. yenmil. yen％

yen

11,178
7,446

3,210
3,261

28.7
43.8

73.89
77.64

FY Mar. 2018

3,209 mil. yen

FY Mar. 2017

3,259 mil. yen(3) Consolidated cashflow status
Cashflow by sales activities

Cashflow by investment activities

Cashflow by financial activities

Term-end balance of cash and cashequivalentmil. yenmil. yenmil. yenmil. yen

△534
102

△823
△628

934
△56

1,718
2,155

FY Mar. 2018
FY Mar. 2017

2. Status of dividend
Annual dividend

FY Mar. 2018
FY Mar. 2017
FY Mar. 2019
(forecast)End 3Q

Term end

Total

Total dividend(Total)Dividend tendency(Consolidated)

Net asset dividend rate
(Consolidated)

End 1QEnd 2Q

yen

yen

yen

yen

yen

mil. yen

％

％

－
－

0.00
0.00

－
－

94.05
－

1.28
0.66

0.00

－

1.00
0.50
0.50
～3.00

41
21

－

1.00
0.50
0.50
～3.00

－

(Note） 1. Capital surplus is included in the dividend resource of FY Mar. 2018.
See “Breakdown of dividend with capital surplus as dividend” for detail.
2. Dividend tendency is not stated in the dividend forecast for FY Mar. 2019 because it is disclosed in the range form.

3. Consolidated performance forecast of FY Mar. 2018 (from Apr 1, 2018 to Mar 31, 2019)(% indication: change compared with the same quarter of the previous year)
Current net profit attributable toCurrent net profit per
Operating profit
Ordinary profit
the parent company’s
shareshareholders

Sales amountFull year

mil. yen％mil. yen％mil. yen％mil. yen

％

yen

5,186

59.3

239

349.2

22

－

14

－

0.34

*Notes(1) Material transfer of subsidiary during the term (Transfer of the specific subsidiary with change of scope of: No
consolidation)
Number of new(Company
Number of excluded(Company－－
companies
name)companies
name)(2) Change of accounting policy / change of accounting estimate / redisplay of correction① Change of accounting policy along with revision of the accounting standards, etc.

: No

② Change of accounting policy other than ①: No③ Change of accounting estimate: No④ Redisplay of correction: No(3) Number of shares issued (ordinary shares)① Number of term-end shares issued (including own
shares)FY Mar. 2018

44,046,000 shares FY Mar. 2017

42,598,000 shares② Number of term-end own shares

FY Mar. 2018614,546 shares FY Mar. 2017614,543 shares③ Average number of midterm shares (quarterly
accumulation)

FY Mar. 2018

42,084,453 shares FY Mar. 2017

41,983,622 shares(Reference) Outline of individual performance
Individual performance of FY Mar. 2018 (Apr. 1, 2017 ~ Mar. 31, 2018)(1) Individual management result(% indication: change compared with the same quarter of the previous year)

Sales amountOperating profit

Current net profit

Ordinary profit

mil. yen％mil. yen％mil. yen％mil. yen

％

203
325

△37.3
32.3

△67
26

-

△71
21

-

△108
82

-

FY Mar. 2018
FY Mar. 2017

Current net profit per share

Current net profit per shareafter dilutive share adjustment

yen

yen

△2.57
1.97

1.97

FY Mar. 2018
FY Mar. 2017(2) Individual financial status
Gross asset

FY Mar. 2018
FY Mar. 2017

(Reference)

Own capital

Net asset

Capital ratio

Net asset per sharemil. yenmil. yen

％

yen

3,855
3,577

2,681
2,687

69.5
75.1

61.72
63.96

FY Mar. 2018

2,680 mil. yen

FY Mar. 2017

2,685 mil. yen* The summary of accounting statement is exempted from audit by certified public accountant or auditing firm.
* Explanation on appropriate use of the performance forecast and other special notes
The statement concerning the future such as performance forecast, etc. described herein is based on the information we have currently
obtained and a certain precondition judged as reasonable, and the actual performance, etc. may be greatly different due to various
factors. See the attached document p.5 “1. Outlook of management result, etc.” (4) Future prospect.” For the reminder for use of
the assumption and performance forecast.

Breakdown of dividend with the capital surplus as capital resource
Breakdown of dividend with the capital surplus as capital resource among the dividend of FY March 2018 is as follows.
Record dateTerm-end

Total

Dividend per share

0.50 yen

0.50 yen

Total dividend amount

21 mil. yen

21 mil. yen(Note) Net asset reduction rate: 0.008

1. Outlook of management result, etc.
(1) Outlook of the current management result
1. Current management result
While the Japanese economics in the current consolidated accounting year continues to be in the mild turnaround
thanks to improvement in the corporate performance and employment situation as well as recover of personal
consumption and facility investment, it still shifted with uncertain future due to concerns of trading policy trend of US
and political situation of North Korea.
Under such economic circumstances, for the electronic and communication device business, in addition to sales
expansion business mainly in the fourth-generation mobile phone equipment related market and the public related
market, we have also focused on new markets and client exploration to acquire orders from new fields. We havealso worked on enhancement of proposal of our self-developed products by continuously promoting “effort for highadded-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 of various business-use wireless, digital signal processor, etc.
indispensable for high-speed signal processing, etc.
In the mobile communication field, the facility investment plan as the measures of radio wave interference forcommunication quality improvement of each carrier has been recovering though slowly since the second half of theterm. Additionally, order receipt has been also recovering though slowly. Inquiries from new clients are slowly
increasing in the mobile communication facilities related business for overseas.
Demands for optical transmission device, digital signal processor, etc. are increasing in the public filed for disastermeasures, business-use wireless and surveillance system, and therefore we will work on further demand expansion in
the public filed as well as activities looking into the future movement of the fifth-generation mobile communication
related market.
Status of order receipt in general is improving, and we will continue to promote expansion of the business fields of ourgroup in order to establish the stable business base, and also continue the activities for profit expansion by enhancing
the proposal of self-developed products.
We have actively promoted the photovoltaic power plant business especially among the renewable energy business.
Under difficult circumstances surrounding the photovoltaic power plant business such as unpredicted delay ofcertification procedures in the revised FIT Act instituted in April 2017 and complication of procedures to acquire
facilities certification, etc., our group is actively consideration the renewable energy and general environmental
business which will become the next pillar and is aiming for expansion of the above businesses.
As the result of the above, the amount of orders received in the current consolidated accounting year was 3,719 mil.
yen (14.7% decrease compared with the same term of the previous year), and the sales amount was 3,255 mil. yen(26.7% decrease compared with the same term of the previous year). In terms of profit and loss, operating loss was
53 mil. yen (71.9% decrease compared with the same term of the previous year), ordinary loss was 63 mil yen(ordinary loss of the same term of the previous year: 106 mil. yen), and the current net loss attributable to the parent
company’s shareholders became 146 mil. yen (the current net loss attributable to the parent company shareholders of
the same term of the previous year: 44 mil. yen) by recording 110 mil. yen of impairment loss.
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 arestably increasing and it is expected to shift steadily hereafter. We will continue to promote expansion of our group’sbusiness fields and also continue the activities for profit expansion by enhancement of proposal of self-developed
products.
We are conducting development and consideration of various products and services related to renewable energy forfurther expansion of operations in the future for the renewable energy system sales business. With further
expansion of sales network and enhancement of the sales system, we will aim for maximization of profit.
In the photovoltaic power plant business and geothermal power plant business, we are actively working on new casedevelopment in order to acquire long-term and stable profit. Power selling started at the solar sharing power plant in
Shimada City, Shizuoka Prefecture on March 20, 2018. Solar sharing is an effort to enhance the feasibility bybalancing agricultural income and photovoltaic power plant and greatly contribute to resolution of issues in agriculture.
On March 30, 2018, power selling was started at the mega solar power plant in Goto City, Nagasaki Prefecture. This
plant is the largest size in our group, and is the first special high-pressure photovoltaic power plant.
We are also actively promoting development of small wind power plants as the next pole of clean energy. In Tohoku
and Hokkaido regions, we have selected 50 areas with good wind condition and obtained power-selling right in thoseareas. With wind power generation, compared with photovoltaic power generation, power can be generated whenwind blows even in the nighttime, which achieves high capacity factor, and therefore, we can secure high feasibility by
selecting places with good wind condition. The fixed purchase price for 20 years of the 50 areas we have obtained
this time is all 55 yen/kWh, which is considered to become power plants with high profitability.
We will hereafter continue to endeavor not only to reduce CO2, but also to continue to the community and society,and to introduce, spread and promote renewable energy by accelerating community-based development of renewableenergy by utilizing characteristic of the community.

Performances of segments shall be as follows.
①

Electronic / communication device business
As the result that the facility investment plan for radio wave interference by carriers has slowly recovered since
the second half of the term, and that expansion of order receipt in the civil service and public related field has
been focused on, and that improvement of operational efficiency has been promoted, the amount of orders
received was 2,492 mil. yen (8.9% decrease compared with the same term of the previous year), sales amountwas 2,626 mil. yen (0.8% increase compared with the same term of the previous year), and segment profit was
225 mil. yen (8.5% decrease compared with the same term of the previous year).

②

Renewable energy system sales businessIn the photovoltaic power plant sales market, the procedure for certification by the revised FIT Act is being
delayed more than expected, which is giving a great impart to starting and completion of the construction, andalso the procurement activities and sales activities could not be conducted as planned due to the unpredictedamount of snowfall in Tohoku region. As the result, the amount of orders received was 1,226 mil. yen (24.6%
decrease compared with the same term of the previous year), sales amount was 277 mil. yen (83.3% decrease
compared with the same term of the previous year) and segment loss was 108 mil. yen (segment loss of thesame term of the previous year: 110 mil. yen).

③

Photovoltaic power plant business
Because the photovoltaic plants in Shimonoseki City, Tateyama City and Sodegaura City which have been
already under operation are selling power at a good rate, and power selling was started at the mega solar
power plant in Kasumigaura City on April 3, 2017, the sales amount was 345 mil. yen (51.7% increase
compared with the same term of the previous year) and segment profit was 115 mil. yen (58.1% increase
compared with the same term of the previous year).

④

Geothermal power plant businessNo sales amount is recorded currently, and segment loss was 14 mil. yen (segment loss of the same term of
the previous year: 0 yen) due to expenditure of the expenses.

Consolidated financial statements and Notes
Consolidated balance sheet(In thousand yen)
FY2016(consolidated)(As of March 31,2017)

FY2017(consolidated)(As of March 31,2018)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade2,155,286
1,456,254

1,718,000
1,377,764

Merchandise and finished goods
Work in process

77,731
156,735

157,216
176,416

Raw materials and supplies
Advance payments - trade108,699
26,026135,063
582,049

Deferred tax assets
Other

30,48976,556

27,626525,287

Total current assets

4,087,780

4,699,425

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

458,035

452,374

Accumulated depreciation△314,285△322,700

Buildings and structures, net

143,750

129,673

Machinery, equipment and vehicles

1,540,903

5,392,318

Accumulated depreciation△219,485△375,919

Machinery, equipment and vehicles, net

1,321,418

5,016,399

727,831665,628△653,695△587,760

74,136

77,868Land
Construction in progress

405,987
638,817

382,049
45,326

Total property, plant and equipment

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

2,584,111

5,651,317

Intangible assets
Goodwill

212,124

207,554

SoftwareOther

66,519066,3200Total intangible assets

278,644273,875

Investments and other assets
Investment securities

22,772

26,172Long-term loans receivable
Deferred tax assets

103,61472,660103,809
105,138

Other
Allowance for doubtful accounts

285,649

300,557△8,700△8,700Total investments and other assets

475,996526,978

3,338,752

6,452,171

1,742
6,316

911
129

Business commencement expenses

11,666

26,108

Total deferred assets

19,72527,1497,446,258

11,178,746

Total non-current assets
Deferred assets
Share issuance cost
Development expenses

Total assets

(In thousand yen)
FY2016(consolidated)(As of March 31,2017)

FY2017(consolidated)(As of March 31,2018)

Liabilities
Current liabilities
Notes and accounts payable - trade523,660

411,372

Short-term loans payable
Current portion of bonds

404,800
20,000461,800-

Current portion of long-term loans payable
Lease obligations

561,353
74,220733,551
201,494

Accounts payable - other
Income taxes payable

164,730
57,787

164,435
13,437

Advances received
Deferred tax liabilities

30,075
3,177

238,622
207

Provision for bonuses
Provision for product warranties

59,986
14,29566,637
12,519Other

126,835

86,269Total current liabilities

2,040,922

2,390,347

Non-current liabilities
Long-term loans payable

614,329523,261

Lease obligations
Deferred tax liabilities

1,245,516
2,584

3,625,902
842

Net defined benefit liability
Asset retirement obligations

163,664
26,225

176,616
55,048Long-term accounts payable - other
Other

90,1781,617

1,190,558
6,013

Total non-current liabilities

2,144,115

5,578,242

4,185,037

7,968,589

Shareholders' equity
Capital stock

1,677,088

1,748,137

Capital surplus
Retained earnings

994,039
655,150

1,065,087
466,480

Total liabilities
Net assets

Treasury shares△61,312△61,313

Total shareholders' equity

3,264,965

3,218,392

329

3,543

Foreign currency translation adjustment△5,606△12,774

Accumulated other comprehensive income△5,276△9,230

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

Share acquisition rights
Total net assets
Total liabilities and net assets

1,532

994

3,261,220

3,210,156

7,446,258

11,178,746

Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income

Net sales
Cost of sales

FY2016(From April 1,2016 to
December 31,2017)
4,443,227
3,151,189(In thousand yen)
FY2017(From April 1,2017 to
December 31,2018)
3,255,443
2,236,505

Gross profit

1,292,038

1,018,937

Selling, general and administrative expenses

1,102,811

965,697

Operating profit

189,226

53,240Non-operating income
Interest income

6,715

8,792

Dividend income
Insurance income

224
527

1,142
2,764

Other

8,909

5,704

Total non-operating income

16,376

18,403

Interest expenses
Foreign exchange losses

79,525
5,092

112,471
9,423

Share of loss of entities accounted for using equity method

11,236
3,248

5,172
8,328

Non-operating expenses

Other
Total non-operating expenses
Ordinary profit (loss)（△）

99,102

135,396

106,500△63,752

1,652
16,326

2,762

Extraordinary income
Gain on sales of non-current assets
Gain on reversal of share acquisition rights
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Other
Total extraordinary losses
Profit (loss) before income taxes（△）

312

－
22

18,291

2,784

5,415

0

8,820
225

110,00612

14,461110,019

110,329△170,986

Income taxes - current

68,872

11,570

Income taxes - deferred△3,180△35,871

Total income taxes

65,691△24,300

Profit (loss)（△）

44,637△146,686

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

Profit (loss) attributable to owners of parent（△）

44,637△146,686

Consolidated statement of comprehensive income

Profit (loss)（△）
Other comprehensive income
Valuation difference on available-for-sale securities

Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income

FY2016(From April 1,2016 to
December 31,2017)
44,637△347△18((In thousand yen)
FY2017(From April 1,2017 to
December 31,2018)△146,686
3,214△7,168△366△3,95344,271△150,639

44,271-△150,639-（detail）
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

Information regarding net sales, income or loss, assets, liabilities, and other items for each reportable segment.
FY2016 (April 1, 2016 -March 31, 2017)(In thousand yen)
Reportable Segment
Electronic andRenewable
CommuniSolar Power
Energy System
cation Device
Plant Business
Sales BusinessBusiness

Geothermal
Power Plant
Business

Total

Adjustment
amount(Note1)

Value
presented inconsolidated
financialstatements

Net Sales
Sales to external customers

2,605,399

1,610,046

227,781―

4,443,227―

4,443,227

Internal sales or Transfers
between segments―

49,403――49,403△49,403―

Total

2,605,399

1,659,449

227,781―

4,492,631△49,4034,443,227

Segment income(loss)

245,987

110,82272,928△503

429,234△240,007

189,226

Segment assets

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

Other items
Depreciation

Investment for affiliatedcompany accounted for by
the equity-method
Increase in property, plantand equipment andintangible assets(Note)1. (1) Adjusted amount of segment profit or loss (△) △ 240,007 thousand yen is adjusted amount of unrealized profit△44,331 thousand yen, adjusted amount of dividends from the consolidated subsidiary △140,000 thousand
yen, transaction deletion between segments △5,000 thousand yen, and profit and loss of group management
division not distributed to business segment △50,462 thousand yen.
(2) Adjusted amount of segment asset 770,620 thousand yen is asset of group management division notdistributed to business segment 819,004 thousand yen, transaction deletion, etc. between segments △13,968
thousand yen and adjusted amount of estimated recoverable amount of deferred tax asset in the consolidated
taxable entity △34,415 thousand yen.
2. Segment profit or loss (△) is adjusted with operating loss in the consolidated financial statement.

FY2017 (April 1, 2017 -March 31, 2018)(In thousand yen)
Reportable Segment
Electronic andRenewable
CommuniSolar Power
Energy System
cation Device
Plant Business
Sales BusinessBusiness

Geothermal
Power Plant
Business

Adjustment
amount(Note1)

Total

Value
presented inconsolidated
financialstatements

Net Sales
Sales to external customers

2,626,727

277,739

345,608―

3,250,075

5,368

3,255,443

Internal sales or Transfers
between segments

―

―

―

―

―

―

―

Total

2,626,727

277,739

345,608―

3,250,075

5,368

3,255,443

Segment income(loss)

225,035△108,389

115,281△14,019

217,908△164,668

53,240

Segment assets

3,004,660

1,074,833

6,534,353―

10,613,847

564,898

11,178,746

85,407

6,879

147,876―

240,163

3,192

243,356

Equity in loss of affiliates――△5,172―△5,172―△5,172

Impairment Loss

―

―

―

110,006

110,006―

110,006――

103,809―103,809―103,80980,481

2,012

4,362,450―

4,444,944

7,783

4,452,727

Other items
Depreciation

Investment for affiliatedcompany accounted for by
the equity-method
Increase in property, plantand equipment andintangible assets(Note)1. (1) Adjusted amount of segment profit or loss (△) △164,668 thousand yen is adjusted amount of unrealized
profit, etc. 6,392 thousand yen, adjusted amount of dividends from the consolidated subsidiary △97,000
thousand yen and profit and loss of group management division not distributed to business segment△74,060 thousand yen.
(2) Adjusted amount of segment asset 564,898 thousand yen is asset of group management division notdistributed to business segment 578,009 thousand yen and transaction deletion, etc. between segments△13,111 thousand yen.
2. Segment profit or loss (△) is adjusted with operating loss in the consolidated financial statement.