2018 March 3Q Summary of Accounting Statements[Japanese Standards] (consolidated)Feb. 13, 2018
Listed company name Tamagawa Holdings Co., Ltd.
Exchange
Tokyo
Code No.
6838
URL http://www.tmex.co.jp
Representative (Title) President(Name) Toru Masuzawa
Finance and accounting
Contact person (Title)(Name) Katsuya Kubo
(TEL) 03-6435-6933
division manager
Quarterly report to be submitted: Feb. 13, 2018
Dividends payment to be started－
Preparation of supplementary explanation document for the quarterly accounting statement ：No
Explanatory meeting for the quarterly accounting statement：No(amount under. mil yen rounded off)

1. Consolidated performance of 2018 Mar. 3Q (from Apr 1, 2017 to Dec 31, 2017)(% indication: change compared with the same quarter of the previous year)
Quarterly profit
belonging to the
Operating profit
Ordinary profit
parent company’s
shareholders(1) Consolidated management result (cumulative)
Sales amountmil. yen%2018 Mar. 3Q
1,997
2017 Mar. 3Q
2,537(Note) Comprehensive 2018 Mar. 3Q
profitmil. yen%mil. yen

%

△21.3
△96
－
△174
△24.0
△43
－
△102
△177 mil. yen (－%) 2017 Mar. 3Q

－
－

△182
△88
△85mil. yen (

－
－
－%)

Quarterly net profit
per share
2018 Mar. 3Q
2017 Mar. 3Q

mil. yen%

Quarterly net profit
per share afterissuable shareadjustment

yen

yen

△4.34
△2.09

－
－

(2) Consolidated financial status
Gross asset
2018 Mar. 3Q
2017 Mar.
(Reference) Own capital 2018 Mar. 3Q

Net asset

Capital ratio

mil. yenmil. yen

8,582
7,446
3,039 mil. yen

3,041
3,261
2017 Mar.

%

35.4
43.8
3,259mil. yen

2. Status of dividends
Annual dividends
End 1QEnd 2QEnd 3Q

Term end

Total

yen

yen

yen

yen

yen

－
－

0.00
0.00

－
－

1.00

1.00

1.00
～3.00

1.00
～3.00

2017 Mar. 3Q
2018 Mar. 3Q
2018 Mar. 3Q (forecast)(Note) Correction from the dividend forecast recently announced:No

3. Consolidated performance forecast of 2018 Mar. (from Apr 1, 2017 to Mar 31, 2018)(% indication: change compared with the same quarter of the previous year)
Current net profit
belonging to theCurrent net
Operating profit
Ordinary profit
parent company’s profit per share
shareholders

Sales amountmil. yen%mil. yen%mil. yen%

Full business year
3,727 △16.1
126 △33.4
32 △70.0(Note) Correction from the performance forecast recently announced
: No

―1―

mil. yen%yen

9 △79.8

0.23

*Notes(1) Material transfer of subsidiary during the current quarter consolidated cumulative period : No
(Transfer of the specific subsidiary with change of scope of consolidation)
Number of newcompanies－ (Company name),

Number of excluded
companies(2) Application of accounting process specific to preparation ofquarterly consolidated financial statements－ (Company name): No(3) Change of accounting policy / change of accounting estimate / redisplay of correction① Change of accounting policy along with revision of the: No
accounting standards, etc.
: No
② Change of accounting policy other than ①③ Change of accounting estimate: No④ Redisplay of correction: No(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)※※2018 Mar. 3Q

42,598,000shares2017 Mar.

42,598,000shares2018 Mar. 3Q

614,544shares2017 Mar.

614,543shares2018 Mar. 3Q

41,983,546shares2017 Mar. 3Q

41,983,676shares

The quarterly summary of accounting statements is excluded from the quarterly review.
Explanation concerning appropriate usage of the performance forecast, 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 to various factors. Please see Annex p.3 “Explanation on the Future Forecast Information of theConsolidated 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 account settlement of the current quarter(1) Explanation concerning the management result
While the Japanese economics in the current 3Q consolidated cumulative period continues to be in the mild
turnaround thanks to improvement in the corporate performance and employment situation, it shifted with uncertain
future due to concerns of labor scarcity mainly in the small business and of downward swing of economics by impact
from foreign politics and economic situation of the Western countries, etc.
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 civil service andpublic 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 “co-development with the companyof business 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, although the facility investment plan as the measures of radio wave interference
for communication quality improvement of each carrier has been postponed, the facility investment has been slowly
restarted, and order receipt has been also recovering though slowly.

Inquiries from new clients are slowly increasingin the mobile communication facilities related business for overseas.
Demands for the analog high frequency product, subsystem, optical transmission device, digital signal processor,
etc. are increasing in the civil service and public filed, and therefore we will work on further demand expansion in thecivil service and public filed as well as activities looking into the future movement of the next generation mobile
communication related market.
Status of order receipt in general is improving, and we will continue to promote expansion of the business fields ofour group in order to establish the stable business base, and also continue the activities for profit expansion byenhancing 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 3Q consolidated cumulative period was
2,704 mil. yen (10.1% decrease compared with the same term of the previous year), and the sales amount was 1,997
mil. yen (21.3% decrease compared with the same term of the previous year).

In terms of profit and loss, operating

loss was 96 mil. yen (operating loss of the same term of the previous year: 43 mil. yen), ordinary loss was 174 mil yen(ordinary loss of the same term of the previous year: 102 mil. yen), and quarterly net loss belonging to the parent
company shareholders was 182 mil. yen (quarterly net loss belonging to the parent company shareholders of thesame term of the previous year: 88 mil. yen).
For the electronic and communication device business, in addition to sales expansion activities mainly in the civil
service and public related market, we are focusing on exploration of new clients.

Especially in the civil service field,

the demands are stably increasing and it 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 ofproposal of self-developed products.
We are conducting development and consideration of various products and services related to renewable energy
for further 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 newcase development in order to acquire long-term and stable profit. We have acquired the land in Shimada City,―3―

Shizuoka Prefecture for a solar sharing power plant which is now under construction.

Solar sharing is an effort toenhance the feasibility by balancing agricultural income and photovoltaic power plant and greatly contribute toresolution of issues in agriculture. We will continue to increase the number of our own clean power plants using
renewable energy including photovoltaic.
Additionally, we are not only focusing on the above renewable energy business, but as new clean energy, we arealso focusing on the hydrogen related business which can generate and store power without exhausting CO2, and weare conducting investigation and consideration on such business in the “Hydrogen Power Business Preparation
Room.”
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 been restarted, and theorder receipt has been recovering though slowly, 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 to shrinkcost, the amount of orders received was 1,732 mil. yen (14.4% decrease compared with the same term of theprevious year), sales amount was 1,639 mil. yen (11.2% increase compared with the same term of the previousyear), and segment profit was 48 mil. yen (16.8% decrease compared with the same term of the previous year).
② Renewable energy system sales businessIn the photovoltaic power plant sales market, demands for purchase of power generation companies was active
continuously from the previous term, but competition heated up for acquirement of procurement cases, and in
addition to decrease of the sales cases initially expected, due to the impact including complication, etc. of
certification procedures in the revised FIT Act, the procurement activities and sales activities of the photovoltaic
power plant cases and small wind power plant cases could not be conducted as initially expected.

As theresult, the amount of orders received was 972 mil. yen (1.2% decrease compared with the same term of theprevious year), sales amount was 89 mil. yen (90.4% decrease compared with the same term of the previousyear) and segment loss was 103 mil. yen (segment loss of the same term of the previous year: 34 mil. yen).
③ Photovoltaic power plant business
The photovoltaic plants in Shimonoseki City, Tateyama City and Sodegaura City which have been already underoperation are selling power at a good rate, and especially thanks to good climate and large amount of insolationfrom April to June 2017, the amount of power selling increased compared to the same term of the previous year.
Additionally, because power selling was started at the mega solar power plant in Kasumigaura City on April 3,
2017, the sales amount was 264 mil. yen (52.9% increase compared with the same term of the previous year)
and segment profit was 94 mil. yen (69.8% increase compared with the same term of the previous year).
④ Geothermal power plant businessNo sales amount is recorded currently, and segment loss was 9 mil. yen (segment loss of the same term of theprevious year: 0 yen) due to expenditure of the expenses.

―4―

(Segment information, etc.)【Segment information】
I. Previous 3Q consolidated cumulative period (From Apr 1, 2016 to Dec 31, 2016)
1. Information concerning the sales amount and the amount of profit or loss per report segment(unit: thousand yen)Amountrecorded inquarterly
Adjusted
consolidated
amountprofit and(Note)1
loss
statement(Note)2

Report segment
Electronic /communicati
on devicebusiness

RenewableenergyPhotovoltaic Geothermal
systempower plant power plantsales
businessbusinessbusiness

Total

Sales amount
Sales amount to externalclients
Internal sales amount ortransfer amount between
segments
Total
Segment profit or loss (△)

1,474,317

890,592

172,839―2,537,749―

2,537,749―

43,405――43,405△43,405―

1,474,317

933,997

172,839―

2,581,154△43,405

2,537,749

57,70234,012

55,715△40

147,390△190,780△43,390(Note)1. Adjusted amount of segment profit △190,780 thousand yen is adjusted amount of realized profit △43,616
thousand yen, adjusted amount of dividends △105,000 thousand yen and profit and loss of groupmanagement division not distributed to business segment △42,164 thousand yen.
2. Segment profit or loss (△) matches operating loss in the quarterly consolidated profit and loss statement.
II. Current 3Q consolidated cumulative period (From Apr 1, 2017 to Dec 31, 2017)
1. Information concerning the sales amount and the amount of profit or loss per report segment(unit: thousand yen)Amountrecorded inquarterly
Adjusted
consolidated
amountprofit and(Note)1
loss
statement(Note)2

Report segment
Electronic /communicati
on devicebusiness

RenewableenergyPhotovoltaic Geothermal
systempower plant power plantsales
businessbusinessbusiness

Total

Sales amount
Sales amount to externalclients
Internal sales amount ortransfer amount between
segments
Total
Segment profit or loss (△)

1,639,763

89,491

264,270―

1,993,526

3,878

1,997,404

―

―

―

―

―

―

―

1,639,763

89,491

264,270―

1,993,526

3,878

1,997,404

48,005△103,519

94,577△9,36529,697△125,979△96,282(Note)1. Adjusted amount of segment profit △125,979 thousand yen is adjusted amount of realized profit 3,983
thousand yen, adjusted amount of dividends from the consolidated subsidiary △79,500 thousand yen andprofit and loss of group management division not distributed to business segment △50,462 thousand yen.
2. Segment profit or loss (△) matches operating loss in the quarterly consolidated profit and loss statement.

―5―２．Quarterly Consolidated Financial Statements（１）Quarterly consolidated balance sheets(In thousand yen)
FY 2016 (consolidated)(As of March 31,2017)

3Q FY 2017 (consolidated)(As of December 31, 2017)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable

2,155,286
1,456,254

1,893,316
872,868

Merchandise and finished goods
Work in process

77,731
156,735

98,446
368,509

Raw materials and supplies
Deferred tax assets

108,699
30,489160,705
11,020

Other
Total current assets

102,582748,936

4,087,780

4,153,803

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

458,035

454,039△314,285△320,111

Buildings and structures-trade, net

143,750

133,927

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

1,540,903

3,119,578△219,485△335,981

1,321,418

2,783,597

Tools, furniture and fixtures-trade, net

727,831657,350△653,695△588,524

74,136

68,825Land
Construction in progress

405,987
638,817406,035
193,814

Total property, plant and equipment

2,584,111

3,586,201

212,124
66,519208,697
65,998Intangible assets
Goodwill
Software
Other

0

0

278,644274,695

Operational investment securities
Long-term loans receivable

22,772
103,61429,088106,174

Deferred tax assets
Other

72,660285,649

80,732
280,659

Total intangible assets
Investments and other assets

Allowance for doubtful accounts△8,700△8,700Total investments and other assets

475,996487,955

3,338,752

4,348,852

Total non-current assets
Deferred assets
Share issuance cost
Development expenses
Business commencement expenses
Total deferred assets
Total assets

―6―

1,742

1,118

6,316
11,66658,36819,99019,72579,4787,446,258

8,582,134

(In thousand yen)
FY 2016 (consolidated)(As of March 31,2017)

3Q FY 2017 (consolidated)(As of December 31, 2017

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

523,660
404,800

341,216
422,000

Current portion of bonds
Current portion of long-term loans payable

20,000561,353

10,000778,852

Lease obligations
Accounts payable - other74,220164,730

106,441
151,266

Income taxes payable
Advances received

57,78730,075

4,200
159,805

Deferred tax liabilities
Provision for bonuses

3,177
59,986322
30,892

Provision for product warranties
Other

14,295
126,835

15,09677,3132,040,922

2,097,406

Long-term loans payable
Lease obligations

614,329
1,245,516

634,467
1,652,479

Deferred tax liabilities
Net defined benefit liability

2,584
163,664

1,926
169,127

Asset retirement obligations
Long-term accounts payable - other

26,22590,17833,251
950,354

Total current liabilities
Non-current liabilities

Other

1,617

1,617

2,144,115

3,443,223

4,185,037

5,540,630

Capital stock
Capital surplus

1,677,088
994,039

1,677,088
994,039

Retained earnings
Treasury shares

655,150

430,796△61,312△61,313

Total shareholders' equity

3,264,965

3,040,610

329

4,161

△5,606△4,799△5,276△638

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

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets

―7―

1,532

1,532

3,261,220

3,041,504

7,446,258

8,582,134

（２）Quarterly consolidated statements of income and Quarterly consolidated statements of comprehensive income Quarterly
Consolidated statements of income
Consolidated third quarter period

Net sales
Cost of sales

3Q FY2016(from April 1, 2016 to
December 31,2016)
2,537,749
1,793,498(In thousand yen)
3Q FY 2017(from April 1,2017 to
December 31,2017)
1,997,404
1,372,145

Gross profit

744,250625,259

Selling, general and administrative expenses

787,641

721,541

Operating loss（△）△43,390△96,282

Non-operating income
Interest income

4,513

6,560

190

355

Dividend income
Share of profit of entities accounted for using
equity method
Other

-

793

6,550

5,680

Total non-operating income

11,254

13,38959,322764

83,542
3,249

7,821

-

2,509

4,395

Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using
equity method
Other
Total non-operating expenses
Ordinary loss（△）

70,41891,187△102,554△174,080

1,652
16,326

1,298-

Extraordinary income
Gain on sales of non-current assets
Gain on reversal of share acquisition rights
Other
Total extraordinary income-

22

17,979

1,321

5,640

12

Extraordinary losses
Other
Total extraordinary losses

5,640

12

Loss before income taxes（△）△90,216△172,771

Income taxes - current
Income taxes - deferred

6,312△8,513

3,444
6,154

Total income taxes△2,2009,599

Loss（△）△88,015△182,370

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

―8―

-

-

△88,015△182,370

Quarterly consolidated statements of comprehensive income
Consolidated second quarter period(In thousand yen)
3Q FY 2017(from April 1,2017 to
December 31,2017))

3Q FY2016(from April 1, 2016 to
December 31,2016)
Loss（△）
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment△88,015△182,370

344

3,831

2,367

806

Total other comprehensive income

2,712

4,638

Comprehensive income△85,303△177,732（breakdown）
Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests△85,303△177,732--―9―