FY2020 March The 1Q Summary of Accounting Statements[Japanese Standards] (consolidated)
Listed company nameTamagawa Holdings Co., Ltd.

Exchange

Code No.
Representative

August 14, 2019Tokyohttps://www.tmex.co.jp
Toru Masuzawa

6838
URL
(Title) President(Name)
Finance and accounting division
Contact person(Title)(Name) Hironori Honjo(TEL)
manager
Quarterly report to be submitted：
August. 14, 2019
Dividends payment to be started：
Preparation of supplementary explanation document for the quarterly accounting statement
Explanatory meeting for the quarterly accounting statement

03-6435-6933
－
：No
：No

(amount under. mil yen rounded off))

1.Consolidated performance of FY 2020 Mar.: 1Q (from Apr 1, 2019 to June 30, 2019)(1) Consolidated management result (cumulative)

Sales amountmil.yen(% indication: change compared with the same quarter of the previous year)
Quarterly profit
belonging to the
Operating profit
Ordinary profit
parent company’s
shareholders%

mil.yen%mil.yenFY2020 Mar. 1Q
715
△4.8
△63
－
△117
FY2019 Mar. 1Q
751
11.4
△18
－
△80
(Note) Comprehensive profit: FY2020 Mar. 1Q△125mil.yen(－%) FY2019 Mar.1Q
Quarterly net profit per
Quarterly net profit per
share after issuable
share
share adjustment
FY2020 Mar. 1Q
FY2019 Mar. 1Q

yen

yen

△26.07△17.81－－%

mil.yen

%

－
△115
－
－
△77
－
△74mil.yen( －%)(2) Consolidated financial status
Gross asset

Net asset
mil.yenFY2020 Mar. 1Q
9,430
FY2019 Mar.
9,572
(Reference)
Own capital: FY2020 Mar. 1Q
3,217mil yen

2. Status of dividends

Own capital ratio
mil.yen

%

3,222
3,368
FY2019 Mar.

34.1
35.2
3,364mil. yen

Annual dividends
End 1QEnd 2Qyen

FY2019 Mar.
FY2020 Mar.

End 3Q
yen

0.00

－
－

FY2020 Mar. (forecast)

Term endyen

0.00(Note) Correction from the dividend forecast recently announced:

Total
yen

yen

－

5.00

5.00

－

5.00
～30.005.00～30.00None

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%

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

Ordinary profit
mil. yen

%

372

－
None

Current net profit
belonging to theparent company’s
shareholders
mil. yen

319

%

148.7

Current net profit per
share
yen

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. 1Q

4,477,100 shares

FY2019 Mar.

4,476,100 shares

FY2020 Mar. 1Q

61,454 shares

FY2019 Mar.

61,454 shares

FY2020 Mar. 1Q

4,414,722 shares

FY2019 Mar. 1Q

4,343,145 shares

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 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.

―2―

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 first quarter consolidated cumulative accounting year continues to be in the mild
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 5G mobile phone equipment 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 proposal of our self-developed

products by continuously promoting “effort for high added-value products,” “expansion and exploration of business field” and “codevelopment with the company of business tie-up.”
As a result, newly explored clients and inquiries are increasing from new markets besides the existing analog high frequency
products, including optics related products of various business-use wireless, digital signal processor, etc. indispensable for highspeed signal processing, millimeter wave band products, etc. necessary for wireless transmission of data of large volumes.
In the mobile communication field, inquiries of high-frequency components are increasing for the 5G mobile communication
system which will start its commercial services in 2020.
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, business-use
wireless and surveillance system in the public filed, and therefore we will work on further demand expansion in the public filed aswell as positively working on self-developed products including product development for the 5G mobile communication related
market.
Order receipt condition in general electronic and communication device business is improving, 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 selfdevelopment products.
We have promoted development and sales of the photovoltaic power plants and small wind power plants in the renewable energy
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 at a goodrate.

Our group is actively reviewing the general renewable energy 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 first quarter consolidated cumulative period was 1,239
mil. yen (47.9% increase compared with the same term of the previous year), and the sales amount was 715 mil. yen (4.8% decrease
compared with the same term of the previous year).

In terms of profit and loss, operating loss was 63 mil. yen (operating loss ofsame term of the previous year: 18 mil. yen), ordinary loss was 117 mil. yen (ordinary loss of the same term of the previous year:
80 mil. yen), and the quarterly net loss belonging to the parent company shareholders was 115 mil. yen (quarterly net loss belonging
to the parent company shareholders of the same term of the previous year: 77 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.
expected to shift steadily hereafter.

Especially in the civil service field, the demands are stably increasing and it is

We will continue to promote expansion of our group’s business fields and also continue theactivities 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 to contribute to thecommunity and society and to introduce, spread and promote renewable energy by taking advantage of characteristics of thecommunity, and accelerating development of community-based renewable energy.

―3―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 1,208 mil. yen (49.3% increase compared with the same term of the previous year), sales
amount was 476 mil. yen (4.3% increase compared with the same term of the previous year), and segment loss was 40 mil.
yen (segment loss of the same term of the previous year: 36 mil. yen).
b. Renewable energy system sales business
As the result that lot selling of mainly photovoltaic power plants has been focused on, the amount of orders received was
30 mil. yen (6.7% increase compared with the same term of the previous year), sales amount was 68 mil. yen (33.2% decrease
compared with the same term of the previous year), and segment loss was 42 mil. yen (segment loss of the same term of theprevious year: 16 mil. yen).
c. Renewable energy plant business
Each of the already-operating photovoltaic power plants in Shimonoseki City and Tateyama 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 agood rate.

In addition, while power selling at the mega solar power plant in Noboribetsu City, Hokkaido started on

November, 2018, the photovoltaic power plant in Kasumigaura City was sold in December 2018 and photovoltaic power
plant in Sodegaura City was sold in March 2019, the sales amount was 168 mil. yen (11.5% decrease compared with the same
term of the previous year) and segment profit was 72 mil. yen (6.6% decrease compared with the same term of the previousyear).

(2) Explanation on financial status① Analysis of financial status(Gross assets)
Gross assets in the end of the current first quarter consolidated accounting period resulted in 9,430 mil. yen, decreasing by 142
mil. yen compared to the end of the previous consolidated accounting year.
This is mainly because cash and deposit decreased due to payment of outstanding corporate tax, etc. and outstanding
consumption tax included in others of current liabilities.
(Liabilities)
Liabilities in the end of the current first quarter consolidated accounting period resulted in 6,208 mil. yen, increasing by 4 mil.
yen compared to the end of the previous consolidated accounting year.
This is mainly because of decrease of outstanding corporate tax, etc. and outstanding consumption tax included in others ofcurrent liabilities, and increase of short-term loan.
(Net assets)
Net assets in the end of the current first quarter consolidated accounting period resulted in 3,222 mil. yen, decreasing by 146
mil. yen compared to the end of the previous consolidated accounting year.
This is mainly because of dividend payment and record of the quarterly loss belonging to the parent company shareholders.
② Business 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 first quarter
consolidated accounting period.
③ Research and development activities
Amount of research and development activities of the entire group in the current first quarter consolidated accounting period is
51 mil. yen.
There is no material change in the status of our group’s research and development activities in the current first quarter―4―

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.

―5―

2.Consolidated financial statements and Notes(1)Consolidated balance sheet(In thousand yen)
FY 2018 (consolidated)(As of March 31,2019)

1Q FY 2019 (consolidated)(As of June 30,2019)

AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable - trade

1,026,668
1,535,070

981,662
1,388,667

Merchandise and finished goods
Work in process

1,616,585
878,670

1,649,631
1,093,860

Raw materials and supplies
Advance payments - trade

185,023
75,543233,962
78,158

Other
Allowance for doubtful accounts

324,495

119,118△14,392△14,392

Total current assets

5,627,664

5,530,668

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

512,094

511,874△331,934△335,237

Buildings and structures, net

180,160

176,636

Machinery, equipment and vehicles

2,575,930

2,576,822

Accumulated depreciation△237,289△277,482

Machinery, equipment and vehicles, net

2,338,641

2,299,340

Tools, furniture and fixtures

795,941805,861

Tools, furniture and fixtures△643,663△657,503

Accumulated depreciation

152,277

148,357

387,466
17,540387,466
17,5403,076,086

3,029,341

Intangible assets
Goodwill

39,614

39,470SoftwareOther

48,205057,4950Total intangible assets

87,82096,966

Investments and other assets
Investment securities

Land
Construction in progress
Total property, plant and equipment

22,152

19,374Long-term loans receivable
Deferred tax assets

45,761
187,140

37,649193,095

Other
Allowance for doubtful accounts

506,398

505,635△8,700△8,700Total investments and other assets

752,754

747,055

3,916,660

3,873,363

Share issuance cost
Development expenses

4,909
100

4,356
93

Business commencement expenses

23,33521,938

Total non-current assets
Deferred assets

Total deferred assets
Total assets―6―

28,345

26,3889,572,670

9,430,420

(In thousand yen)
FY 2018 (consolidated)(As of March 31,2019)

1Q FY 2019 (consolidated)(As of June 30,2019)

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

503,108
50,000525,529
350,000

Current portion of long-term loans payable
Lease obligations

464,982
179,152

399,205
193,918

Accounts payable - other
Income taxes payable

151,932
59,636

260,4818,637

Advances received
Provision for bonuses

444,000
114,905446,839
41,160

Provision for product warranties
Other

14,257
213,953

14,27876,7982,195,928

2,316,848

Long-term loans payable
Lease obligations

231,415
3,132,673

159,463
3,085,798

Deferred tax liabilities
Net defined benefit liability

2,501
187,940

2,472
194,290

Asset retirement obligations
Long-term accounts payable - other

35,193416,61235,236412,424

1,882

1,855

4,008,218

3,891,542

6,204,146

6,208,390

Capital stock
Capital surplus

1,770,627
1,065,912

1,771,108
1,044,320

Retained earnings
Treasury shares

595,043

479,920△61,313△61,313

Total shareholders equity

3,370,270

3,234,035

Total current liabilities
Non-current liabilities

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities△724△3,288Foreign currency translation adjustment△5,085△12,896

Accumulated other comprehensive income△5,810△16,185

4,064

4,179

3,368,524

3,222,029

9,572,670

9,430,420

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
Consolidates first quarter period

Net Sales
Cost of sales

1Q FY 2018(from April 1, 2018
to June 30, 2018)751,367
511,483(In thousand yen)
1Q FY 2019(from April 1, 2019
to June 30, 2019)
715,114
470,768

Gross profit

239,883

244,345

Selling, general and administrative expenses

258,462

307,805

Operating loss（△）△18,578△63,459

2,097

1,097

242
1,932

6
-

2,560

1,210

6,832

2,313

57,976-43,228
1,121

8,968

9,576

1,729

2,352

Non-operating income
Interest income
Dividend income
Exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary loss（△）
Extraordinary losses
Other
Total extraordinary losses

68,67456,279△80,420△117,425

0

-

0

-

Loss before income taxes（△）
Income taxes - current△80,420△117,425

Income taxes - deferred

3,627

3,467

△6,673△5,769Total income taxes△3,046△2,302Loss（△）△77,373△115,123

Loss attributable to non-controlling interests（△）
Loss attributable to owners of parent（△）

―8―

-

-

△77,373△115,123

Quarterly consolidated statements of comprehensive income
Consolidated first quarter period

Loss（△）(In thousand yen
1Q FY 2019(from April 1, 2019
to June 30, 2019)

1Q FY 2018(from April 1, 2018
to June 30, 2018)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income△77,373△115,123△2,482
5,787△2,564△7,8103,304△10,375

Comprehensive income△74,068△125,498（breakdown）
Comprehensive income attributable to owners of parent△74,068△125,498--

Comprehensive income attributable to non-controllinginterests―9―(3) Notes for the quarterly consolidated financial statements(Notes for precondition of continuing company): NA(Shareholders’ capital related)
I. Previous 1Q consolidated cumulative period (from April 1, 2018 to June 30, 2018): Matters on dividends
Amount of dividends payment
Resolution

Type ofshare

Dividend
resource

May 11, 2018
Board of directors

OrdinarysharesEarnedsurplus

Total amountof dividends(thousand yen)

Dividend
amount per
share (yen)21,7150.50

Record date

Effective date

March 31, 2018

June 29, 2018

II. 1Q consolidated cumulative period (from April 1, 2019 to June 30, 2019): Matters on dividends: Matters on dividends
Amount of dividends payment
Resolution

Type ofshare

Dividend
resource

May 17, 2019
Board of directors

OrdinarysharesEarnedsurplus

Total amountof dividends(thousand yen)

Dividend
amount per
share (yen)22,073(Notes when there is drastic change in shareholders’ capital amount) :NA

―10―

5.00

Record date

Effective date

March 31, 2019

June 28, 2019

(Segment information, etc.)【Segment information】
I. Previous 1Q consolidated cumulative period (from April 1, 2018 to June 30, 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

457,200

102,704

189,998

749,903

1,464

751,367

－

71

－

71

△71

－

Total

457,200

102,775

189,998

749,974

1,392

751,367

Segment profit or loss (△)△36,973△16,052

77,221

24,194△42,773△18,578(Note)
1. Adjusted amount of segment profit or loss (△) △42,773 thousand yen is adjusted amount of unrealized profit, etc. 1,557 thousand yen,adjusted amount of dividends from the consolidated subsidiary △17,500 thousand yen and profit and loss of group management division
not distributed to business segment △26,831 thousand yen.

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

II. Current 1Q consolidated cumulative period (from April 1, 2019 to June 30, 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

476,936

68,559168,154713,650

1,464

715,114

－

－

－

－

－

－

Total

476,936

68,559168,154713,650

1,464

715,114Segment profit or loss (△)△40,920△42,981

72,157△11,744△51,715△63,459(Note)
1. Adjusted amount of segment profit or loss (△) △51,715 thousand yen is adjusted amount of unrealized profit, etc. 1,591 thousand yen,adjusted amount of dividends from the consolidated subsidiary △17,500 thousand yen and profit and loss of group management division
not distributed to business segment △35,807 thousand yen.

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

―11―