FY2021 March The 1Q Summary of Accounting Statements[Japanese Standards] (consolidated)
Listed company name

August 14, 2020

Tamagawa Holdings Co., Ltd.

Exchange
Tokyo
Code No.
6838
URL
https://www.tmex.co.jp
Representative(Title) President(Name) Toru Masuzawa
Contact person(Title) Director(Name) Keita Masuyama (TEL)
Quarterly report to be submitted：
August. 14, 2020
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 2021 Mar.: 1Q (from Apr 1, 2020 to June 30, 2020)(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.yenFY2021 Mar. 1Q
1,165
63.0
FY2020 Mar. 1Q715△4.8(Note) Comprehensive profit: FY2021 Mar. 1Q%

mil.yen

62
59
－
△63
－
△117
61mil.yen(－%) FY2020 Mar.1Q
Quarterly net profit per
Quarterly net profit per
share after issuable
share
share adjustment
yen

FY2021 Mar. 1Q
FY2020 Mar. 1Q%

mil.yen

%

60
－
－
－
△115
－
△125mil.yen( －%)

yen

11.63
△26.0711.15－(2) Consolidated financial status
Gross asset

Net asset
mil.yenFY2021 Mar. 1Q
9,260
FY2020 Mar.
9,423
(Reference)
Own capital: FY2021 Mar. 1Q
4,417mil yen

2. Status of dividends

Own capital ratio
mil.yen

%

4,418
4,156
FY2020 Mar.

47.7
44.1
4.154mil. yen

Annual dividends
End 1QEnd 2Qyen

FY2020 Mar.
FY2021 Mar.

End 3Q
yen

0.00

－
－

FY2021 Mar. (forecast)

Term endyen

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

Total
yen

yen

－

7.00

7.00

－

5.00
～30.005.00～30.00None

3. Consolidated performance forecast of FY 2021 Mar. (from Apr 1, 2020 to Mar. 31, 2021)(% indication: change compared with the same quarter of the previous year)
Sales amountmil. yen

Operating profit%

mil. yen%

Full business year
6,937
9.5
850
5.5
(Note) Correction from the performance forecast recently announced:―1―

Ordinary profit
mil. yen

713

%

None

6.0

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

499

%

13.6

Current net profit per
share
yen

109.54

※ 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)**

FY2021 Mar. 1Q

5,428,200 shares

FY2020 Mar.

5,062,000 shares

FY2021 Mar. 1Q

61,454 shares

FY2020 Mar.

61,454 shares

FY2021 Mar. 1Q

5,157,127 shares

FY2020 Mar. 1Q

4,414,722 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 p.4 “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 of management result of the current term
Matters herein concerning the future were determined by our group (our company our consolidated subsidiary) as of the final
day of the current quarter consolidated accounting period.
The Japanese economics in the current first quarter consolidated accumulative period continues to shift with uncertain situation
due to the impacts on the global economics given by trend of the issues between US and China and future of Chinese economics,
and uncertainty in the policies. In addition, while we are exploring brand new corporate activities because visiting to the clientsand business negotiation, etc. are strictly restricted due to pandemic of Covid-19 since the beginning of this year and “declarationof state of emergency” by the Japanese government on April 7, our group has engaged in both prevention of infection spread andsales activities by shifting to working from home and holding video conferences by restriction on non-essential outings andmeasures including temperature check and mask wearing, etc.
Under such economic circumstances, for the electronic and communication device business, in addition to sales expansion
business mainly in the 5G related market and public related market continuously from last year, we have been also dedicated to newmarkets and client exploration to actively 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 ofbusiness 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 high frequency
products, including optics related products used for various business-use wireless, digital signal processor, etc. indispensable forhigh-speed signal processing, millimeter wave band products, etc. necessary for wireless transmission of data of large volumes.
Especially in the current first quarter consolidated accumulative period, we have gained remarkable sales from large order ofsemiconductor burn-in equipment, etc. and we have firmly achieved success such as specific launching of “manufacturing of the
low-power high-frequency circuit for linear accelerator and beam monitor circuit system of the next-generation radiant light facility.”In the mobile communication field, demands for high-frequency components are increasing including the 5G related market.
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 equipment of the 5G related market.
Although order receipt condition in general electronic and communication device business is slightly decreasing compared tothe previous term, it is mainly due to slowing of progress of the clients’ plans, and we will continue to promote expansion of ourgroup’s business field as well as proposing new sales method according to change and also continue the activities for profit
expansion by proposal and enhancement of self-development products.
We have promoted development and sales of the solar power plants and small wind power plants in the renewable energy systemsales business. For development and sale of solar power plants, we conduct the entire flow of development of land, procurement,
sale and maintenance inhouse in order to secure profit while fixed price purchase is dropping. 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, the already-operating solar power plants have been selling power at a good rate including
Nagasaki Prefecture, Goto-City, Kojindake Solar Power Plant of which extension was completed in March 2020. Development ofa small wind power plant is also in progress, and we have started full-scale wind condition survey since April 2020 for the large wind
power plant (1.984MW) in Nemuro City, Hokkaido. We are in process of interconnection in 2022 at a good rate. Our group is
actively reviewing Japan and also overseas mainly in Southeast Asia for the general renewable energy and environmental businesses
which will become our next pillar for expansion of operations of such businesses. We will be continuously engaged in not only
reduction of CO2, but also contribution to the community and society and promotion of introduction and spread of renewable energy
by accelerating development of community-based renewable energy.
As a result of the above, the amount of orders received in the current first quarter consolidated accumulative period was 1,057mil.
yen (14.7% increase compared with the same term of the previous year), and the sales amount was 1,165 mil. yen (63.0% increase
compared with the same term of the previous year). In terms of profit and loss, operating profit was recorded as 62 mil. yen (sales
loss of the same term of the previous year: 63 mil. yen), ordinary profit was recorded as 59 mil. yen (ordinary loss of the same termof the previous year: 117 mil. yen), and therefore the quarterly net profit belonging to the parent company shareholders was 60 mil.
yen (quarterly net loss of the same term of the previous year: 115 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 andit is expected to shift steadily hereafter. We will continue to promote expansion of our group’s business fields 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 solar power plants, we are actively engaged indevelopment 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
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 993 mil. yen (17.8% decrease compared with the same term of the previous year), sales
amount was 940 mil. yen (97.2% increase compared with the same term of the previous year), and segment profit was 124
mil. yen (segment loss of the same term of the previous year: 40 mil. yen).

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b. Renewable energy system sales business
Since we focused on lot selling of small wind power plants, the amount of orders received was 63 mil. yen (109.9% increase
compared with the same term of the previous year), sales amount was 131 mil. yen (91.7% increase compared to the same
term of the previous year), and segment loss was 29 mil. yen (segment loss of the same term of the previous year: 42 mil.
yen).
c. Renewable energy plant business
The already-operating solar power plants in 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. However, since income
from power selling decreased after we sold two mega solar plants in the previous consolidated accounting year, the sales
amount was 112 mil. yen (33.2% decrease compared with the same term of the previous year) and segment profit was 33 mil.
yen (53.7% decrease compared with the same term of the previous year).

(2) Explanation on financial status①Analysis of financial status(Gross assets)
Gross assets in the end of the current first quarter consolidated accounting period resulted in 9,260 mil. yen, decreasing by 162
mil. yen compared to the end of the previous consolidated accounting year.
This is mainly because of decrease of cash and deposit by payment of outstanding consumption tax included in others in theoutstanding corporate tax, etc. and current liabilities.
(Liabilities)
Liabilities in the end of the current first quarter consolidated accounting period resulted in 4,841 mil. yen, decreasing by 424
mil. yen compared to the end of the previous consolidated accounting year.
This is mainly because of decrease of outstanding consumption tax included in others in the outstanding corporate tax, etc. andcurrent liabilities.
(Net assets)
Net assets in the end of the current first quarter consolidated accounting period resulted in 4,418 mil. yen, increasing by 262
mil. yen compared to the end of the previous consolidated accounting year.
This is mainly because of increase of the capital fund and capital reserve by exercising of the share acquisition right.

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 first quarter
consolidated accumulative period.
③Research and development activities
Total amount of research and development cost in the current first quarter consolidated accumulative period is 36 mil. yen.
There is no material change in the status of our group’s research and development activities in the current first quarter
consolidated accumulative period.

(3) Explanation on the future forecast information including the consolidated performance expectation information
No change in the performance forecast announced on May 20, 2020 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 31,2020)

1Q FY 2020 (consolidated)(As of June 30,20120

AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable - trade

2,215,666
1,391,469

2,109,203
1,466,874

Merchandise and finished goods
Work in process

2,889,509
778,562

2,855,778
634,218

Raw materials and supplies
Advance payments - trade

231,870
105,709231,289
72,701Other
Allowance for doubtful accounts

166,749

201,460△17,632△17,632

Total current assets

7,761,905

7,553,893

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

514,488

513,989

Accumulated depreciation△346,363△349,904

Buildings and structures, net

168,125

164,085

Machinery, equipment and vehicles

368,769

371,897

Accumulated depreciation△135,540△145,464

233,229

226,432

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

824,843828,009△687,178△695,846

137,665

132,162Land

272,573272,573

Total property, plant and equipment

811,592

795,254

39,03951,80938,85853,4600090,84892,318Investment securities
Long-term loans receivable

51,16455,72553,541
108,873

Deferred tax assets
Other

181,357
458,529

187,198
459,545

Allowance for doubtful accounts△8,700△8,700Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets

Total investments and other assets
Total non-current assets
Deferred assets
Share issuance cost

738,077

800,458

1,640,518

1,688,031

2,935

2,462

Development expenses
Business commencement expenses

71
17,74963
16,349Total deferred assets

20,75518,8759,423,180

9,260,801

Total assets―5―

(In thousand yen)
FY 2019 (consolidated)(As of March 31,2020)

1Q FY 2020 (consolidated)(As of June 30,2020)

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

400,496
74,980385,763
12,470Current portion of long-term loans payable
Lease obligations

315,775
172,964

272,068
141,251

Accounts payable - other
Income taxes payable

176,095
96,648277,306
13,514

Advances received
Provision for bonuses

322,665
119,402338,653
37,405

Provision for product warranties
Other

22,878259,627

25,464
114,380

1,961,534

1,618,278

Long-term loans payable
Lease obligations

368,9112,289,987

317,9392,254,693

Deferred tax liabilities
Net defined benefit liability

331
207,112283
220,619

Asset retirement obligations
Long-term accounts payable - other

15,155
358,483

15,155351,167

Other

64,805

63,7783,304,788

3,223,638

5,266,322

4,841,916

Capital stock
Capital surplus

1,961,823
1,235,035

2,077,522
1,321,442

Retained earnings
Treasury shares

1,034,475

1,094,502△61,313△61,313

Total shareholders' equity

4,170,020

4,432,154

Total current liabilities
Non-current liabilities

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

Accumulated other comprehensive income
Valuation difference on available-for-sale securities△3,962△67

Foreign currency translation adjustment△11,724△14,574

Accumulated other comprehensive income△15,687△14,642

2,524

1,371

4,156,857

4,418,884

9,423,180

9,260,801

Share acquisition rights
Total net assets
Total liabilities and net assets―6―

(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 2019(from April 1, 2019
to June 30, 2019)
715,114
470,768(In thousand yen)
1Q FY 2020
(from April 1, 2020
to June 30, 2020)
1,165,461
840,143

Gross profit

244,345

325,318

Selling, general and administrative expenses

307,805

262,544

Operating profit (loss (△))

△63,459

62,774

1,097

1,278

6
-

312
21,724Gain on forgiveness of debts
Other

1,210

12,104
1,786

Total non-operating income

2,313

37,20643,22833,942

1,121

1,289

9,576

1,508

Non-operating income
Interest income
Dividend income
Insurance income

Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
method
Other

2,352

3,247

56,27939,988

Ordinary profit (loss (△))

△117,425

59,992

Profit (loss (△)) before income taxes
Income taxes - current
Income taxes - deferred△117,425

59,992

Total non-operating expenses

Total income taxes

3,467

5,854

△5,769△5,888△2,302△34

Profit (loss (△))
Profit (loss (△)) attributable to non-controlling interests△115,123

60,027--

Profit (loss (△)) attributable to owners of parent△115,123

60,027―7―

Quarterly consolidated statements of comprehensive income
Consolidated first quarter period
1Q FY 2019(from April 1, 2019
to June 30, 2019)
Profit (loss (△))
Accumulated other comprehensive income
Valuation difference on available-for-sale securities△115,123(In thousand yen
1Q FY 2020
(from April 1, 2020
to June 30, 2020)
60,0273,895

Foreign currency translation adjustment△2,564△7,810△2,850Total other comprehensive income△10,375

1,044

Comprehensive income△125,498

61,072（breakdown）
Comprehensive income attributable to owners of parent△125,498

61,072--Comprehensive income attributable to non-controllinginterests―8―

(Segment information, etc.)【Segment information】
I. Previous 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.
II. Current 1Q consolidated cumulative period (from April 1, 2020 to June 30, 2020)
Information concerning the sales amount and the amount of profit or loss per report segment
Report segment
Electronic /Renewablecommunication energy system
device business sales business

Renewableenergygeneration
business

Total(unit: thousand yen)Amountrecorded inquarterly
Adjusted
consolidated
amountprofit and loss
(Note) 1
statement(Note) 2

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

940,709

118,843

105,909

1,165,461－

1,165,461－

12,6126,450

19,062△19,062－

Total

940,709

131,456

112,359

1,184,524△19,062

1,165,461

Segment profit or loss (△)

124,447△29,966

33,379127,860△65,086

62,774

1. Adjusted amount of segment profit or loss (△) △65,086 thousand yen is adjusted amount of inter-segment transactions of 10,013
thousand yen, adjusted amount of dividends from the consolidated subsidiary △37,500 thousand yen and profit and loss of groupmanagement division not distributed to business segment △17,573 thousand yen.

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

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