FY2023 March The 4Q Summary of Accounting Statements[Japanese Standards] (consolidated)
May 15, 2023
Listed company name Tamagawa Holdings Co., Ltd.
Exchange
Tokyo
Code No.
6838
URL https://www.tmex.co.jp
Representative(Title)President(Name) Toru Masuzawa
Finance&Accounting
Contact person(Title)(Name) Yasuhisa Masuda(TEL) 03-6435-6933
ManagerOrdinary shareholders’ meeting to be held: June 28, 2023Dividends payment to be started: June 29, 2023
Securities report to be submitted:
June 28, 2023
Preparation of supplementary explanation document for the accounting statement ： Yes
Explanatory meeting for the accounting statement： Yes(For institutional investors / analysts)(amount under mil. yen rounded off)

1. Consolidated performance of FY Mar. 2023 (from April 1, 2022 to Mar 31, 2023)(1) Consolidated management result(% indication: change compared with the same quarter of the previous year)
Current net profit
Operating profit
Ordinary profit
attributable to the parent
company’s shareholders

Sales amountmil. yen％

FY Mar. 2023
3,294 △47.2
FY Mar. 2022
6,236
△7.5
(Note) Comprehensive profit: FYMarch. 2023

mil. yen%mil. yen

%

△514
331

－
172.8

△482
148
197mil. yen (－64.8
82.6％)％

mil. yen

△437
－
379
79.1
△500mil. yen ( －％)FYMarch. 2022

Current net profit per
Current net profit per
Current net profit
share after dilutive
share
ratio of own capitalshare adjustment
FY Mar. 2023
FY Mar. 2022

yen

yen

％

△80.82
25.70

－
24.36

△9.3
2.8

(Reference) Investment profitFYMarch. 2023
on equity method△20mil. yen

Ordinary margin ofgross asset

Operating margin ofsales amount

％

％

△6.1
4.0
△3mil. yen

FYMarch. 2022

△13.3
6.1

(2).Consolidated financial status
Gross asset
FY Mar. 2023
FY Mar. 2022

Net asset
mil. yen

8,636
8,359

5,002
5,442
4,988mil. yen

FY Mar. 2023

(Reference) Own capital

Own capital ratio

mil. yen

Gross asset
yen％

FYMarch. 2022

57.8
65.0
5,432mil. yen

829.73926.00(3) Consolidated cashflow status
Cashflow by sales
activities
FY Mar. 2023
FY Mar. 2022

Cashflow by investment
activities

Cashflow by financial
activities

Term-end balance of cash
and cash-equivalentmil. yenmil. yenmil. yenmil. yen△1,883
△16

△273
△165

1,150
△170

1,055
2,030

２．Status of dividend
Annual dividend
End 1QEnd 2Qmil. yenEnd 3Q

Term end

mil. yenmil. yen

0.00
0.00

－
－

mil. yen

Totalmil. yen

Total dividend(Total)mil. yen

Dividend
Net asset
tendency
dividend rate
(Consolidated) (Consolidated)
％

％

7.00
7.00
41
27.23
0.77
5.00
5.00
30
0.57
－
5.00
5.00
0.00
－
－
－
～15.00 ～15.00(Note) 1.The dividend resource of the terms ending in March 2022 and March 2023 includes the capital surplus.
See the below described “Breakdown of dividends from the capital surplus” for details of the term ending inMarch.
2. The dividend forecast for the term ending in March 2024 does not describe the dividend tendency since it isdisclosed by the range.
FY Mar. 2022
FY Mar. 2023
FY Mar.
2024(forecast)－－３． Consolidated earnings forecast of FY Mar. 2023 (from April 1, 2023 to Mar 31, 2024）(% indication: change compared with the same quarter of the previous year)

Sales amountFull Year

Operating profit

Current net profit
attributable to theparent company’s
shareholders

Ordinary profit

Current net profit per
sharemil. yen％mil. yen％mil. yen％mil. yen

％

yen

6,035

83.2

66

－

7

－

4

－

0.85

*Notes(1) Material transfer of subsidiary during the term (Transfer of the specific subsidiary with change of scope of: No
consolidation)
Number of
Number of excluded(Company name)(Company name)－、－new companies
companies（２）Change of accounting policy / change of accounting estimate / redisplay of correction
Change of accounting policy along with revision of the①： Yes
accounting standards, etc② 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

FY Mar. 2023

6,073,900shares

FY Mar. 2022

5,927,900shares

FY Mar. 2023
② Number of term-end own shares③ Average number of midterm shares (quarterly

61,508shares

FY Mar. 2022

61,484shares

5,973,607shares

FY Mar. 2022

5,785,232shares

own shares)

FY Mar. 2023

accumulation)(Reference) Outline of individual performance
Individual performance of FY Mar. 2023(Apr. 1, 2022 Mar. 31, 2023)(% indication: change compared with the same quarter of the previous year)(1) Individual management result
Sales amountFY Mar. 2023
FY Mar. 2022

FY Mar. 2023
FY Mar. 2022

Operating profit

Current net profit

Ordinary profit

mil. yen％mil. yen％mil. yen％mil. yen

％

161
216

△25.5
14.2

△264
△177

－
－

△287
△114

－
－

△301
△49

－
－

Current net profit per share

Current net profit per shareafter dilutive share adjustment

yen

yen

△50.48△8.50－－（２）Individual financial status
Gross asset

FY Mar. 2023
FY Mar. 2022
(Reference) Own capital**

Net asset

Capital ratio

mil. yenmil. yen

4,015
4,372

3,442
3,700

FY Mar. 2023

3,430mil. yen

FY Mar. 2022

Net asset per share
％

85.4
84.4
3,690mil. yen

yen

570.61629.06The earning summary is not subject to the audit by the certified accountant or auditing firm.
Explanation on appropriate use of the performance forecast and other special notes

Description of the future including the performance prospect in this document is based on the information that wecurrently have and certain preconditions that we determine as reasonable, and the actual performance ,etc. may begreatly different due to various factors. Please see “1. Overview of the management result, etc. (4) Future
prospective” on P.5 of the attached document for the preconditions of the performance forecast and cautions for useof the performance forecast.
That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 2023 is as follows.
Record dateTerm-end

Total

Dividend per share

5yen

5yen

Total dividend amount

30 mil.yen

30 mil.yen(Note) Net asset reduction rate: 0.009

1. Overview of the management result, etc.
(1) Overview of the management result of the current period
The matters concerning the future in the text have been determined by Our Group (Our Company and consolidated
subsidiaries) as of the final day of the current consolidated accounting year.
Thanks to an ease and abolishment of the restrictions concerning Covid-19 epidemic, we have been slowly
proceeding with normalization of the social activities in the Japanese economics in the current consolidated accounting
year. However, we have been shifting with more confusing and uncertain situation due to the impact of Covid-19
epidemic, and influence over the global economics given by trend and such perspective of the issues between US andChina, and uncertainty in the policies, global shortage of semiconductors, rising oil prices, etc. as well as the worsened
situation between Russia and Ukraine.
Under such economic circumstances, for the electronic and communication device business, in addition to sales
expansion business mainly in the 5G related market and civil services/public related market, through the efforts according
to transition of the time including innovation and enhancement of the website with the purpose of increase of new clients’inquiries as non-contact type sales (inside sales) due to Covid-19 epidemic, we have been also dedicated to 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 “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 used for various business-use wireless, digital signal processor,
etc. indispensable for high-speed signal processing, millimeter wave band, terahertz products, etc. necessary for
wireless transmission of data of large volumes, and we are proactively working such as “Beyond 5G / 6G IndustrialAcademic Cooperation Research.”, etc.
In the mobile communication field, since the communication common carriers’ infrastructure investment wascontrolled, the demand for the existing products is decreasing. Therefore, we will aim for and work on sales expansionof infrastructure sharing related devices in the perspective of increasing demand for infrastructure sharing as a method
to expand infrastructure by reducing investment.
In regard to proposals for new clients related to mobile communication facilities for overseas, since various
restrictions due to Covid-19 have been gradually terminated, we have started proposal activities to new clients on aremote basis and face-to-face basis.
Demands for the optical transmission device, digital signal processor, etc. are increasing as business-use wireless,disaster measures and surveillance system in the public filed. We will work on further sales expansion. Additionally,
we will work on securing long-term and stable order receipt by joining the national project as “National Resilience” fromthe development stage.
In addition, by enhancing proposals of self-developed products along with promotion of active business domain
expansion through marketing the self-developed technology for surveillance units targeting the Drone business market
and joining the private satellite business, we will continue the activities for profit expansion in order to establish thestable business base.
In the renewable energy business, we have continuously worked on acceleration of development of small wind power
plants. In the current period, since there has been a global delay of procurement of the equipment in a number ofindustries, we were also affected in the similar way and increased the number of units for development by taking themeasures such as advance procurement of the equipment, etc. In addition, as a result of diversification of fundprocurement, 43 units of small wind power plants were newly interconnected in the current period by executing multiple
project finances including sustainable loan, etc. On the other hand, we are currently promoting increase of the numberof units to be held by limiting the number of sellout to 6 units in the current period in order to build a new profit base bypower selling in the future.
We will continuously enhance the development system by diversifying fund procurement by product finance, etc. frombanks.
In order for the stakeholders surrounding us to secure the precise profit structure and growth, we are aiming to build
the unique business model in the renewable energy business as a domestic company focusing on owning small wind
power plants from this period and expecting to launch various mechanism and structure reformations including theorganizations of the same business. Simultaneously, we will contribute to continuous reduction of greenhouse gas byeasing the business risk and accelerating development of new renewable energy sources with development of small
wind power plants of which unit is small size and risk dispersion and securement of profitability and mobility.
In addition, as the measure after the next period, we will continuously accelerate development of small wind power
plants and will also join the small waterpower plant project in Flores Island, Nusa Tenggara, Indonesia to launch
diversification of power source for the future.
As the result of the above, the amount of orders received in the current consolidated accounting year was 4,918 mil.
yen (22.3% decrease compared with the same period of the previous year), and the sales amount was 3,294 mil. yen(47.2% decrease compared with the same period of the previous year). In terms of profit and loss, operating loss wasrecorded as 437 mil. yen (the operating profit of the same period of the previous year: 379 mil. yen), ordinary loss wasrecorded as 514 mil. yen (the ordinary profit of the same period of the previous year: 331 mil. yen), and the current
period’s net loss belonging to the parent company shareholders was 482 mil. yen (the current period’s net profit
belonging to the parent company shareholders of the same period of the previous year: 148 mil. yen).
In the electronic / communication device business, we will focus on exploration of new clients by setting the public
related market which is expected to continue to transit steadily and where the demand is stably increasing as the centerof our sales expansion activities. Furthermore, we will also proactively expand the business domain as well as
continuing the activities for profit expansion in order to establish the stable business base as the entire electronic andcommunication device business by enhancement of proposals for self-developed products.
Our group is proactively considering development of the general environmental business in addition to the renewableenergy business not only as domestic expansion but also overseas expansion mainly in Southeast Asia, and will
actively conduct investment activities for expansion of the business operation. Our group will further work on CO2
reduction and the measures for global warming with all the Group employees and will proactively disclose information
to the stakeholders surrounding us for ESG management and will take a positive challenge to achieve SDGs goals.
Situations of management results by business type segments is as follows.
a. Electronic and communication device businessFor electronic and communication device business, the amount of received orders was 4,337 mil. yen (0.3%
increase compared with the same period of the previous year) since the clients’ advance orders increased for thecountermeasures against delay of delivery due to the global shortage of semiconductors and non-iron metalmaterials.
However, since we could not avoid the impact despite the measures taken for the latest difficulty in procurementof electronic components, etc., and due to delayed sales affected by delayed delivery of some components, we
could not reach the plan of the beginning of the period, resulting in the sales amount of 2,713 mil. yen (34.4%
decrease compared with the same period of the previous year), and segment loss of 78 mil. yen (87.1% decrease
compared with the same period of the previous year).
b. Renewable energy system sales businessWe interconnected 43 units of small wind power plants in the current period. ON the other hand, as a return
action against control of the number of small wind power plants sold as small as 6 units and against sellout of thelarge solar power plants in Noboribetsu City, Hokkaido in the previous period (June 2022), the sales amountdecreased compared to the previous period. However, the sales and segment profit have decreased as a return
action of selling Hokkaido Noboribetsu City Solar Power Plant in the previous period (June 2021). The amountof orders received was 580 mil. yen (71.0% decrease compared with the same period of the previous year), sales
amount was 580 mil. yen (72.4% decrease compared to the same period of the previous year), and segment loss
was 69 mil. yen (segment profit of the same period of the previous year: 178 mil. yen).

2. Basic idea on selection of accounting standards
Our group shall create the consolidated financial statements by the Japanese standards in consideration ofcomparability between periods and comparability between companies of the consolidated financial statements.
We will appropriately apply IFRS (International Financial Reporting Standards) in consideration of the overseas anddomestic situations.

３．Consolidated financial statements and Notes（１）Consolidated balance sheet(In thousand yen)
FY2022(consolidated)(As of March 31,2022)

FY2023(consolidated)(As of March 31,2023)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

2,060,604
2,205,186

1,055,068
1,371,660

Merchandise and finished goods
Work in process

781,903
1,077,617

2,208,403
999,891

Raw materials and supplies
Advance payments - trade482,925
57,205

843,908
83,993

Other
Allowance for doubtful accounts

172,694353,946△27,692△28,607

Total current assets

6,810,444

6,888,266

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

527,933

553,616

Accumulated depreciation△379,316△399,192

Buildings and structures, net

148,617

154,423

Machinery, equipment and vehicles

386,774

418,077

Accumulated depreciation△189,356△207,331

197,417

210,745

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

936,939

1,088,975△766,358△863,189

170,580

225,785

Land
Construction in progress

315,6860298,1300Total property, plant and equipment

832,302889,085

Accumulated depreciation
Tools, furniture and fixtures, net

Intangible assets
Goodwill

5,539

5,539

SoftwareOther

57,316
051,5190Total intangible assets

62,85657,059Investments and other assets
Investment securities

186,910356,541

Long-term loans receivable
Deferred tax assets

187,457
108,460

50,000109,069

Other

139,124

283,615

Allowance for doubtful accounts

621,953799,226

1,517,112

1,745,371

Total non-current assets
Deferred assets
Share issuance cost

29,985

1,984

Development expenses
Business commencement expenses

12
1,843

－
671

Total deferred assets

31,841

2,656

8,359,398

8,636,293

Total assets

(In thousand yen)
FY2022(consolidated)(As of March 31,2022)

FY2023(consolidated)(As of March 31,2023)

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

700,884
146,655

591,995
270,332

Current portion of long-term loans payable
Lease obligations

267,873
4,965

279,298
4,822

Accounts payable - other
Income taxes payable

211,349
67,927

90,575
21,275

Advances received
Provision for bonuses

42,78236,70967,51023,009Provision for product warranties
Other

100,980
55,98647,981
48,386

Total current liabilities

150,038

72,257

1,786,153

1,517,444

100,000

100,000

Long-term loans payable
Lease obligations

584,527
14,302

1,566,520
8,810

Deferred tax liabilities
Net defined benefit liability

255,023
15,243

277,579
13,127

Asset retirement obligations

161,634

150,664

Notes and accounts payable - tradeNon-current liabilities
Bonds payable

Other

1,130,731

2,116,703

Total liabilities

2,916,884

3,634,147

Capital stock
Capital surplus

2,485,241
1,683,419

2,535,100
1,692,213

Retained earnings
Treasury shares

1,273,405

790,618△61,373△61,394

Total shareholders' equity

5,380,693

4,956,537

Valuation difference on available-for-sale securities

15,354Foreign currency translation adjustment

36,285△45,035
77,159

Accumulated other comprehensive income

51,63932,124

10,18011,767

Net assets
Shareholders' equity

Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

－

1,716

5,442,513

5,002,146

8,359,398

8,636,293

（２）Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(In thousand yen)
FY2022(consolidated)(As of March 31,2022)

FY2023(consolidated)(As of March 31,2023)

Net sales
Cost of sales

6,236,197
4,569,699

3,294,497
2,404,753

Gross profit

1,666,497

889,743

Selling, general and administrative expenses

1,287,486

1,326,962

Operating profit

379,011△437,218

Net salesInterest income

4,138

4,770

Dividend income
Insurance income
Share of profit of entities accounted for using
equity method
Foreign exchange gains

527
22,479

597
6,238

－

43,041

11,765

11,977

Gain on forgiveness of debts

38,911

66,62524,85030,319

Share of loss of entities accounted for using equity method

7,892
3,794

－
20,288

Other
Total non-operating expenses－
10,40043,9006,934Interest expenses
Foreign exchange losses

21,56817,86529,412
13,443Non-operating expenses
Interest expenses
Foreign exchange losses

Interest expenses

86,372

144,297

331,550△514,890

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

478
40

45,00040,305

Total extraordinary income

519

85,305

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Loss on sales of investment securities
Loss on sales of non-current assets

0

0

－
－
25,9408,525
17,556－25,94026,081

Profit before income taxes

306,128△455,667

Income taxes - current
Income taxes - deferred

73,654
83,776

18,902
6,502

Total income taxes

157,430

25,404

Profit148,697△481,071

Profit attributable to owners of parent
Profit before income taxes

－

1,716

148,697△482,787

Consolidated statement of comprehensive income(In thousand yen)
FY2022(consolidated)(As of March 31,2022)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities

Foreign currency translation adjustment
Total other comprehensive income

FY2023(consolidated)(As of March 31,2023)

148,697△481,071

7,507
41,693△60,390
40,87449,201△19,515

197,899△500,586

Comprehensive income attributable to owners of parent

197,899△502,302

Comprehensive income related to non-controllinginterests

－

1,716

Comprehensive income（detail）

（Information regarding net sales, income or loss, assets, liabilities, and other items for each reportable segment

FY2022 (April 1, 2021 -March 31, 2022)(In thousand yen)
Reportable Segment

Value presented inconsolidated
financial statements

Adjustment
amount(Note1)

Total

Electronic/
Communi-cation
Device Business

Renewable energy
plant business

1,237,545－

1,237,545－

1,237,545

1,086,189－

1,086,189－

1,086,189

Total

992,859－

992,859－

992,859

Segment income(loss)

819,064－

819,064－

819,064

Segment assets－

1,245,718

1,245,718－

1,245,718

Other items－

844,708

844,708－

844,708

Depreciation

4,135,658

2,090,427

6,226,086－

6,226,086－

10,111

10,111－

10,111

4,135,658

2,100,538

6,236,197－

6,236,197

－

－

－

－

－

4,135,658

2,100,538

6,236,197－

6,236,197

607,512

178,482785,994△406,983

379,0114,539,364

3,116,898

7,656,263

703,135

8,359,398

115,141

67,101

182,243627

182,870

Segment assets－△3,794△3,794－△3,794

Other items－

160,045

160,045－

160,045

Depreciation

109,901－

109,901

5,916

115,817

Net Sales
Sales to external customers

Internal sales
segments

or Transfers

betweenEquity in profit of affiliates
Impairment Loss
Investmentforaffiliatedcompany
accounted for by the equity-method
Net Sales
Sales to external customers

Internal sales
segments

or Transfers

between

Total
Segment income(loss)(Note) 1. (1) Adjustment amount of segment profit △406,983 thousand yen is the adjustment amount 1,035 thousand
yen including unrealized profit, etc. and △408,037 thousand yen of the cost of group management division
which is not distributed to the business segment.
(2) Adjustment amount of segment asset 703,135 thousand yen is the asset of group management division
which is not distributed to the business segment.
2. Segment profit matches the operating profit in the consolidated profit and loss statement

FY2023 (April 1, 2022 -March 31, 2023)(In thousand yen)
Reportable Segment

Value presented inconsolidated
financial statements

Adjustment
amount(Note1)

Total

Electronic/
Communi-cation
Device BusinessElectronic/
Communi-cation
Device Business

909,169－

909,169－

909,169

584,956－

584,956－

584,956

Total

650,427－

650,427－

650,427

Segment income(loss)

569,218－

569,218－

569,218

Segment assets－

246,503

246,503－

246,503

Other items－

323,211323,211－323,211

Depreciation

2,713,772

569,7143,283,487－

3,283,487－

11,01011,010－11,0102,713,772

580,725

3,294,497－

3,294,497

－

－

－

－

－

2,713,772

580,725

3,294,497－

3,294,497

78,214△69,5818,632△445,851△437,218

4,272,533

3,498,708

7,771,241

865,052

8,636,293

Net Sales
Sales to external customers

Internal sales
segments

or Transfers

betweenEquity in profit of affiliates
Impairment Loss
Investmentforaffiliatedcompany
accounted for by the equity-method
Net Sales
Sales to external customers

Internal sales
segments

or Transfers

between

Total

132,460

61,215

193,676

4,040

197,717

Segment assets－△20,288△20,288－△20,288

Other items－

17,556

17,556－

17,556

Depreciation

－

－

－

－

－

186,704－

186,704

24,503

211,207

Segment income(loss)

Net Sales(Note) 1. (1) Adjustment amount of segment profit △445,851 thousand yen is the adjustment amount 1,464 thousand
yen including unrealized profit, etc. and △447,315 thousand yen of the cost of group management division
which is not distributed to the business segment.
(2) Adjustment amount of segment asset 865,052 thousand yen is the asset of group management division
which is not distributed to the business segment.
2. Segment profit or loss (△) matches the operating loss in the consolidated profit and loss statement