Summary of Consolidated Financial Statements
for the Second Quarter of the Fiscal Year Ending March 2014 (J-GAAP)
November 11, 2013
Company Name: Tamagawa Holdings Co., Ltd.
Stock Code:
6838
Representative:
Toru Masuzawa, President
Contact:
Akihiro Ushiroda, Manager
Scheduled Date of Filing Quarterly Securities Report:
Scheduled Commencement Date of Dividend Payout:
Quarterly Earnings Supplementary Explanatory Documents:
Quarterly Earnings Presentation:

Listing: JASDAQ (Tokyo Stock Exchange)
URL:
http://www.tmex.co.jp/Tel: +81-3-6435-6933
November 12, 2013
—Yes
Yes (For institutional investors and analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Results for the Second Quarter of Fiscal Year Ending March 31, 2014
(from April 1, 2013 to September 30, 2013)(1) Consolidated Financial Results (cumulative)(Percentages indicate changes from the year-earlier period)
Net Sales

Operating Income¥ Million%

2Q FY 2014
1,820
2Q FY 2013
1,590
Note: Comprehensive Income:Ordinary Income¥ Million%¥ Million

14.5
215
129.2
44.493—2Q FY 2014: ¥192 million (107.2%)

21883¥ Million%

163.0190
108.7—91—
2Q FY 2013: ¥92 million (—%)

Net income per shareafter dilution

Net income per share
2Q FY 2014
2Q FY 2013

Net Income%

¥¥

16.55
13.91

14.54
—

(2) Consolidated Financial Position
Total Assets

Net Assets¥ Million

2Q FY 2014
FY 2013
Reference: Shareholders’ Equity:

Equity Ratio¥ Million

%

2,307
1,750

70.6
63.4

3,255
2,709
2Q FY 2014: ¥2,296 million

FY 2013: ¥1,718 million

2. Cash Dividends
End of 1Q

Annual Dividends
End of 3Q

End of 2Q¥¥

End of 4Q¥FY 2013—0.00—FY 2014—0.00
FY 2014—(forecast)
Note: Revision of the latest released dividend forecast: None
Year-end dividend projections for the fiscal year to March 2013 are indeterminate.

Total¥¥0.00

0.00——3. Forecast for the Fiscal Year Ending March 31, 2014 (from April 1, 2013 to March 31, 2014)(Percentages indicate year-on-year changes)

Net Sales¥ Million

Operating Income%¥ Million%

Ordinary Income¥ Million

Year to4,504
22.7
493
32.2
March 31, 2014
Note: Revision of the latest released financial results forecast: None488

Net incomeper shareNet Income%¥ Million%¥30.4449

32.341.80

*Notes(1) Changes in important subsidiaries during the period under review (six months): None
(Changes in subsidiaries accompanying change in the scope of consolidation)
New:(Company names:Excluded:(Company names:))

Notes concerning changes in important subsidiaries during the period(2) Application of special accounting treatment in the preparation of quarterly consolidated financial statements: None
(3) Change of accounting policies; change and/or restatement of accounting estimates
1) Changes in accounting principles caused by revision of accounting standards: None
2) Changes in accounting principles other than those mentioned above: None
3) Changes in accounting estimates: None
4) Restatement: None
(4) Number of shares issued and outstanding (shares of common stock)1) Number of shares outstanding (including treasury stock) at
end of period

2Q FY 2014

13,183,000 shares

FY2013

10,753,000 shares

2Q FY 2014

203,493shares

FY2013

203,493 shares

2Q FY 2014

11,528,2
50 shares

2QFY
2013

6,570,684 shares

2) Number of treasury stock at end of period

3) Average number of shares outstanding during the period
under review (first and second quarter)

Notes concerning the total number of shares issued and outstanding* Statement concerning the status of implementation of quarterly review proceduresThis summary of quarterly financial statements is not the subject of audit procedures pursuant to the Financial Instruments andExchange Act. At the time of disclosure of this summary of quarterly financial statements, the audit procedures of quarterly
consolidated financial statements pursuant to the Financial Instruments and Exchange Act have not concluded.
* Cautionary statement with respect to forward-looking statements
The forward-looking statements such as the forecasts for the business performance described in this document are based on thejudgments made by the Company in accordance with information currently available that is rational. For this reason, actual results
may differ from these forecasts due to a number of factors, including but not limited to the operating environment. For theunderlying assumptions and usage of earnings projections refer to "Explanation of consolidated earnings estimates andforward-looking information" on page 3 of the Attachment.

Tamagawa Holdings Co., Ltd. (6838)/Summary of Financial Statements for the Second Quarter for Fiscal Year Ending March 31, 2014

1. Qualitative Information on Quarterly Financial Results(1) Explanation of business results
The Japanese economy in the period under review displayed first signs of recovery as the strong yen corrected andshare prices rose on expectations spurred by the government's economic stimulus measures and the monetary policy
measures of the Bank of Japan. Ripple effects on the real economy have been insufficient, however, and the outlook
remains uncertain amid concerns over slowing emerging economies, specifically China, and financial instability inEurope.
In this operating environment, the Group worked on strengthening business development in its main business lines inElectronics and Telecommunications Equipment Business operations, centered on markets related to 3.9G mobile
telecommunications equipment, defense, and wireless technology applications for public infrastructure and disasterprevention. Moreover, as a result of efforts made at high added-value product development as well as widening anddeveloping the Group's business expanse, demand from new customer strata has also been on an uptrend. At the sametime, the Group continued to strengthen its business platforms centered on enhancing earnings through improvement
activities surrounding the cost of sales.
The Group's Solar Business Division operations (collectively meaning the Solar System Sales Business operations andSolar Power Plant Business operations; the same applies in the following.) experienced rising user interest in
renewable energy, especially regarding solar energy power generation, prompted by the enactment of the "Act on
Special Measures concerning the Procurement of Renewable Electric Energy by Operators of Electric Utilities"(hereinafter, "Renewable Energy Special Measures Act").
As a result of the developments described in the foregoing, consolidated order receipts reached ¥1,999 million (+2.4%compared with the year-earlier period). Sales revenue totaled ¥1,820 million (+14.5% compared with the year-earlierperiod). Earnings increased compared with the year-earlier period, marking operating income of ¥215 million(+129.2% compared with the year-earlier period), ordinary income of ¥218 million (+163.0% compared with theyear-earlier period), and net income for the period of ¥190 million (+108.7% compared with the year-earlier period).
In Electronics and Telecommunications Equipment Business operations, despite intensifying price competition in themarket since the start of the current fiscal year, mobile telecommunications infrastructure saw continued facility
investment to accommodate increased traffic from the smartphone proliferation and to resolve incidence of weak or no
signal reception. Moreover, due mainly to the government's supplementary budget, public works demand has been on
the rise, lifting expectations for sustained robust conditions in the wireless market for public infrastructure. With thisdemand expansion in the wireless market, the Company will continue to extend its business expanse and strengthen its
activities to increase earnings.
In order to expand sales routes nationwide in Japan for the Group's Solar System Sales Business operations, internalframeworks will be put into place and sales and marketing activities will be further strengthened.
Moreover, Solar Power Plant Business operations will aim to provide at the Group-level stable power supply so as tocontribute to local communities and society at large. To this end, the Group will endeavor to create integrated
frameworks spanning the width from securing land for power plants to the initiation of electric power sales and in thisway promote earnings growth.

-2-Tamagawa Holdings Co., Ltd. (6838)/Summary of Financial Statements for the Second Quarter for Fiscal Year Ending March 31, 2014

Results by business segment are described below.
Notably, due to the completion of the large-scale solar energy power plant that has been under construction in
Shimonoseki city, Yamaguchi prefecture in the first quarter of the current fiscal year and an ensuing review ofmanagement administration procedures, the Group's Solar Business Division operations were separated into the Solar
System Sales Business operations and the Solar Power Plant Business operations. Beginning this second quarter,comparisons and analyses are based on this separation.
1. Electronics and Telecommunications Equipment Business operations
New order receipts posted ¥1,634 million (-8.2% compared with the year-earlier period) with sales of ¥1,382 million(-2.5% compared with the year-earlier period) while segment operating income rose to ¥187 million (+26.8%compared with the year-earlier period) thanks to efforts at creating high added value products and activities to reducethe cost of sales. Main factors were ongoing base station facility investment by mobile telecommunications carriersand defense related investment and public investment in public wireless facilities continuing at moderate levels.
2. Solar System Sales Business operations
New order receipts posted ¥365 million (+271.2% compared with the year-earlier period) with sales of ¥414 million(+320.9% compared with the year-earlier period) and segment income of ¥47 million (compared with a segment lossof ¥22 million in the year-earlier period). Main factors were gradually rising orders at Solar System Sales operations
since the taking of effect of the Renewable Energy Special Measures Act.
3. Solar Power Plant Business operations
Following the completion of the large-scale solar energy power plant under construction in Shimonoseki city,
Yamaguchi prefecture, power sales commenced in the second quarter. Revenue recognition for power sales generated
by the plant started in July 2013, but due to prior initial expenditures for other solar energy power plant projects
currently under way, a segment loss of ¥13 million resulted on sales of ¥23 million.
Power sales at the Shimonoseki solar energy power plant now in operation are developing to plan and earnings
performance is expected to be favorable.
Although the uncertain economic environment points to unchanged adverse operating environment, the Company will
nonetheless continue to promote earnings growth at each business segment combined with efforts at businessrestructuring.
(2) Explanation of financial position
Total assets
Total consolidated assets at the end of the period under review amounted to ¥3,255 million, up ¥545 million from theend of the previous fiscal year.
This was mainly due to an increase in cash and deposits.
Total liabilities
Total consolidated liabilities at the end of the period under review amounted to ¥947 million, down ¥11 million fromthe end of the previous fiscal year.

-3-Tamagawa Holdings Co., Ltd. (6838)/Summary of Financial Statements for the Second Quarter for Fiscal Year Ending March 31, 2014

Net assets
Consolidated net assets at the end of the period under review amounted to ¥2,307 million, up ¥556 million from theend of the previous fiscal year.
This was mainly due to net income for the period and proceeds from the exercise of stock warrants.
(3) Cash flows
Consolidated cash and cash equivalents (hereinafter, "Cash") at the end of the period under review was ¥992 million,
which was ¥602 million higher than at the end of the previous fiscal year. Main factors were net income for the period
before income taxes, etc., a reduction in accounts receivable, and income from the issuance of stocks.
Cash flows from operating activities
Cash provided by operating activities was ¥394 million (compared with ¥236 million in the year-earlier period).
Main factors were net income for the period before income taxes, etc., and a reduction in accounts receivable.
Cash flows from investing activities
Cash used in investing activities was ¥210 million (compared with ¥46 million in the year-earlier period).
This was mainly due to expenditure for the acquisition of property, plant, and equipment.
Cash flows from financing activities
Cash provided by financing activities was ¥418 million (compared with ¥222 million in the year-earlier period).
This was mainly due to income from the issuance of shares.
(4) Operational and financial issues to be addressed
No new important operational and financial issues to be addressed have emerged in the period under review.
(5) R&D activities
In the period under review, expenditure for Group level R&D activities was ¥59 million.
No important changes in the status of the R&D activities of the Group occurred in the period under review.
(6) Actual production, new orders, and sales
New orders and sales at the Solar System Sales Business operations in the period under review posted steady growth.
Main factors have been rising demand for solar energy power generation systems following the taking of effect of the"Act on Special Measures concerning the Procurement of Renewable Electric Energy by Operators of Electric
Utilities," and aggressive sales activities of the Company including efforts to expand the sales networks of theoperations concerned.

-4-Tamagawa Holdings Co., Ltd. (6838)/Summary of Financial Statements for the Second Quarter for Fiscal Year Ending March 31, 2014(7) Explanation of consolidated earnings estimates and forward-looking information
Consolidated operating income, ordinary income, and net income for the period at the Electronics andTelecommunications Equipment Business division are expected to exceed initial projections due to efforts at businessefficiency gains and cost reviews, etc., associated with cost cutting activities to lower the cost of sales.
Operations at the Solar Business division are also proceeding to plan. Efforts to expand operations by further widening
the sales network for solar energy power generation systems equipment will continue.
Details are stated in the "Notice of Revision of Results Projections" released on November 6, 2013.

-5-Tamagawa Holdings Co., Ltd. (6838)/Summary of Financial Statements for the Second Quarter for Fiscal Year Ending March 31, 2014

2. Matters concerning summary information (Notes)(1) Changes in important subsidiaries during the period under review (six months)
No relevant category.
(2) Application of special accounting treatment in the preparation of quarterly consolidated financialstatements
No relevant category.
(3) Change of accounting policies; change and/or restatement of accounting estimates
No relevant category.

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