ANNUAL REPORT

FY2 0 2 0

MESSAGE TO OUR SHAREHOLDERS
Greetings
We (TOWA) are No.1 in the world for semiconductor molding equipment and precision molds toprotect the semiconductor chips by using resin.
We hold the world’s top class core technology in ultra-precision mold. So far, we have accomplishedvarious technology innovations in molding process such as multi-plunger system and compression
system, singulation process (last half of molding process) and automation technologies relating tothese.
Expanding technologies such as 5G, IoT (Internet of Things), AI (Artificial Intelligence) andautomatic driving system and services using big data are all realized by semiconductors. Big growthin these business fields is expected to continue.
For many years we have led molding and singulation process in semiconductor packaging field.
This success is wholly based on seeking what our customers really need thoroughly, putting ourbusiness philosophy "Strive to develop key technologies and maintain 'quarter-lead' over thecompetition in order to insure that our innovative products are always the first to market" into practiceand creating new market.
Our original compression technology is the molding method with no resin flow and best for leadingedge semiconductor packaging ― the technology required for the packaging has become more andmore difficult as layering and modularization in semiconductor memory and 5G related devices goeson.
And the compression method makes the efficiency in the use of resin almost 100%. The
compression method contributes greatly to customer’s cost reduction and reduces the amount of waste,
which makes it a more environmentally friendly molding technology.
The compression technology is unrivaled from its release in 2009.

Economic Overview
For most of the current consolidated fiscal year, the global economy remained in a difficult situation
amid the global spread of the novel coronavirus, but some signs of recovery were observed reflecting
the additional economic measures taken by national governments, the benefits of vaccination, andother factors.

－1－Performance
In the semiconductor industry, rising demand for IT-related products stemming from the growth ofremote working and online courses, and the full-scale rollout of the 5G high-speed communication
standard have caused a tight semiconductor supply. Coupled with this, a sharp recovery in demand forautomobiles and industrial equipment has created a global shortage of semiconductors. In response,
semiconductor manufacturers increased capital investment to reinforce their supply systems and themarket environment remained strong.
Under these circumstances, the Group completed a new factory under TOWA (Nantong) Co., Ltd.
in February 2021. With enhanced production capacity and diversified production bases in the
expanding Chinese market, a production system that enables stable supply even in an emergency is
now in place. Additionally, as a leading company of semiconductor molding equipment, we steadily
responded to demands for better quality in concert with the sophistication of semiconductors. As aresult, we recorded significant growth in our operating results, with full-year orders received hitting arecord high of 40,927 million yen. (an increase of 132,27 million yen compared to the previous
consolidated fiscal year, up 47.8%)
Regarding the impact of the novel coronavirus on business results, since there were no major delays
in production, delivery, equipment installation work, etc., the impact on our business was negligible.
That being said, we will thoroughly implement infection prevention measures across the Group andcarry out business activities while continuously paying close attention to the infection status in eachregion.
The Group performances in this consolidated fiscal year are recorded as follows:
Net sales 29,760 million yen (an increase of 4,451 million yen compared to the previous
consolidated fiscal year, up 17.6%)
Operating income 3,618 million yen (an increase of 2,806 million yen and 4.5 fold compared to thatof the previous consolidated fiscal year)
Ordinary income 3,818 million yen (an increase of 3,171 million yen and 5.9 fold compared to thatof the previous consolidated fiscal year)
Net income attributable to owners of parent 2,663 million yen (an increase of 2,294 million yen and
7.2 fold compared to that of the previous consolidated fiscal year)－2－The main factors of (year-on-year) increase/decrease in operating income for the current consolidated
fiscal year are as follows.
Impact of increased sales

an increase of 1,851 million yen

Impact of improved product mix

an increase of 111 million yen

Impact of increased unit selling prices, cost reduction, etc.

an increase of 452 million yen

Impact of decreased loss on valuation, reversal of loss on valuation, etc.
an increase of 615 million yen
Impact of increased SG&A expenses

a decrease of 223 million yen

The results by segment are as follows.
“Semiconductor manufacturing equipment business”
In the semiconductor manufacturing equipment business, molding equipment and molds saw a surge
in sales in the China region, where in-house semiconductor production is being promoted, while
singulation equipment, mainly for smartphones and other 5G-related products, also enjoyedremarkable growth in sales. As a result, net sales rose to 26,536 million yen. On the income front,
along with the increase in net sales, an increase in sales of compression molds for memory products
and other factors improved profitability. Consequently, operating income skyrocketed to 3,333 million
yen (an increase of 2,715 million yen and 5.4 fold compared to that of the previous consolidated fiscal
year).
“Fine plastic molded products business”
As for the operating results of the fine plastic molded products business, the sales of medical devices
such as thermometers was steady. As a result we recorded net sales 1,806 million yen (an increase of
192 million yen compared to the previous consolidated fiscal year, up 11.9%), and operating income
389 million yen (an increase of 146 million yen compared to the previous consolidated fiscal year, up
60.5%).
“Laser processing equipment business”
As for the operating results of the laser processing equipment business, orders and sales in the firsthalf year were sluggish, although the current orders and sales environment is on a recovery trend as
demand for electronic components is increasing alongside the recovery in demand for automobiles
and industrial machinery. For these and other reasons, we recorded net sales 1,364 million yen (adecrease of 373 million yen compared of the previous consolidated fiscal year, down 21.5% ), andoperating loss103million yen(the operating loss of the previous consolidated fiscal year was 48 million
yen ).

－3－

Looking Ahead
With a longstanding commitment to continual technical progress, the Group has ever since its
founding upheld its Corporate Mission to “contribute to the growth of the world’s industries by boldly
devoting all of our energy to oducing results for the purpose of developing and providing key enabling
technologies for each successive generation of products, while maintaining a ‘quarter-lead’ over thecompetition.”With this Corporate Mission as the foundation for all our activities, we aim to create the world’s
most advanced solutions in anticipation of market needs and to improve our corporate value, by
thoroughly optimizing QCDS (Quality, Cost, Delivery and Service), pursuing safety, complying withlaws and untiringly pursuing CS (Customer Satisfaction), which means to satisfy customer needs.
Raising “Pursuing true value as a manufacture” as the theme, we announced the long-term
management vision "TOWA 10 Year Vision" in March 2014 aiming to achieve net sales of 50 billion
yen and business profit ratio of 16% ten years later through the efforts of "expansion of existing
businesses and market share" and "creation of new market by way of developing applied coretechnology". And we formulated the First Mid-Term Business Plan (April 2014-March 2017) as thefirst Milestone on the road to the achievement of "TOWA 10 Year Vision".
Under our Second Mid-Term Business Plan (April 2017-March 2020), we reinforced our businessfoundations, strengthened existing businesses and implemented individual growth strategies, with an
aim to open up new markets that would allow us to increase profit opportunities and enhance ourcorporate value. As a result, we successfully affirmed our superiority in the most advanced packaging
market with TOWA’s proprietary compression technology and also developed new businesses byapplying our core technologies.
And the Third Mid-Term Business plan(April 2020-March 2024) lays out our goals for the final
four years of the “TOWA 10 Year Vision”, that being to improve our added-value, improve our
profitability, and build a solid financial base by making a paradigm shift. At the same time, we aim toachieve the “TOWA 10 Year Vision” by constructing an even more effective system of governance,
proactively promoting SDGs, and greatly contributing to the development of society and industry.
The basic policies of the Third Mid-Term Business Plan and the strategies for each issues are as
follows:
1. Theme
Achieving the “TOWA 10 Year Vision” by making a paradigm shift－4－2. Basic policies◎Realize the added-value inherent to our proprietary technologies, quality and business processes(know-how) by making a paradigm shift to improve profitability.
◎Strengthen market competitiveness and financial base by maximizing throughput.
◎Expand new businesses and profits based on our core technologies.
◎Cultivate human resources who will lead the next generation.
◎Increase corporate value by enhancing corporate governance and undertaking initiatives forachieving SDGs.
3. Business strategies“Semiconductor manufacturing equipment business”▶Strengthen market competitiveness and profitability by using added-value to differentiate ourselvesfrom competitors.
▶Reinforce our production system and financial base by practicing MIP (Minimal Inventory &Period) designed to shorten lead time and reduce inventories.
▶Anticipate customer needs and develop environment-friendly products promptly by proactively
investing resources in development.
“Fine plastic molded products business”▶Enhance the added-value of the TOWA brand and increase the business scale as a proposal-based
processing manufacturer on a core of processing, molding and assembly technologies.
▶Further pursue quality, cost and delivery in order to build a stable profitable structure.
“New business”▶Develop applications of our core technologies in order to create new core business that will help
reshape our business portfolio.
▶Release TOWA-original products.
▶Expand TSS (Total Solution Services), remodeling and other businesses on a global scale in order
to increase business opportunities.
▶Improve competitiveness and increase market share by utilizing our global production bases toreduce costs.
“Laser processing equipment business”▶Step up application development in order to bring new products to market.
▶Make full use of our global production and sales bases in order to increase production capacity,
reduce costs, and strengthen sales system and services.

－5－4. Strategies by function[Sales strategies]▶Enhance process support and build business models that can be produced only with our technology,
thereby expanding sales and improving profitability.
▶Expand the range of utilization of our proprietary compression devices.
▶Enter cutting-edge (5G, in-vehicle, AI), middle-range and low-end markets in order to expand
market presence.
▶Build a global sales and management system in order to increase customer satisfaction.
[Production strategies]▶Optimize our global production and purchasing system in order to reduce costs and shorten leadtimes.
▶Improve production technologies in order to increase confidence in quality.
▶Introduce new production technologies and work to make high value-added products.
▶Build a business structure that can respond to changes in the environment (risks).
[Development strategies]▶Enhance competitiveness of existing equipment (transfer, compression, FMS).
▶Establish de facto standards through mold process development and the next-generation molding
innovation.
▶Develop new TOWA-original products.
[Human resources/organizational strategies]▶Establish the TOWA Global Technology Center as a platform for wide-ranging business support
from process development to solution proposals.
▶Consolidate marketing functions to reinforce the organization.
▶Cultivate global leaders through rotation of the next-generation human resources.
▶Promote workstyle reform through IT-driven work efficiency improvements.

－6－

5. Business Target
We have set the target for the Group as follows.
Recognizing these as important indicators, we will strive to increase our corporate value.
(Millions of yen)
FY2020

FY2021

FY2022

FY2023

297

380

420

500

211

263

263

310

18

19

20

21

New business

54

75

110

139

Laser processing equipment
business

14

23

27

30

Operating income

36

50

60

80

Ordinary income

38

50

60

80

Net income attributable to owners of parent

27

35

42

56

Net sales
Semiconductor
manufacturing equipment
business
Fine plastic molded products
business

Net sales(breakdown)

The above-mentioned matters concerning the future were determined by the Group at the end of thisconsolidated fiscal year.
We would like to express our heartfelt appreciation for your support.
We look forward to your continuing support and assistance in the future.
August 2021
Hirokazu Okada
President & CEO－7－

Consolidated Balance Sheets
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESMarch 31, 2020 and 2021

Millions of yen

Thousands of
U.S. dollars(Note 1)
2021

2020

2021

￥
10,016￥
10,686Inventories …………………………………………………….
Other current assets …………………………………………

7,107
(2)
7,105
6,654
779

8,943
0
8,943
9,153
1,176

80,779080,77982,675
10,622

Total current assets ………………………………………..

24,55429,958

270,598

Land ……………………………………………………………
Buildings and structures ………………………………………
Machinery and equipment …………………………………….
Leased assets (Notes 2(8) and 11)………………………………
Construction in progress ………………………………………
Less: Accumulated depreciation …………………………

4,341
16,113
14,472860
72(22,077)

4,366
18,196
15,203951
950(23,426)

39,436
164,357
137,3238,590
8,581(211,597)

Total property, plant and equipment ……………………….

13,781

16,240146,690

Other assets:
Investment securities (Note 3) ………………………………..
Deferred income taxes (Note 9) ……………………………..
Asset for retirement benefits(Notes 2(12) and 6) ……………..
Other …………………………………………………………..

2,690
1,129
70
901

3,856
570
330
837

34,830
5,149
2,981
7,560

Total other assets ………………………………………….

4,790

5,593

50,520Total assets ………………………………………………………

43,12551,791

467,808

ASSETS
Current assets:
Cash on hand and at banks ……………………………………
Notes and accounts receivable :Trade ………………………………………………………..
Less: Allowance for doubtful accounts ……………………

＄
96,522

Property, plant and equipment, at cost :The accompanying notes are an integral part of these financial statements.

－8－

Consolidated Balance Sheets
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESMarch 31, 2020 and 2021

2020

2021

Thousands of
U.S. dollars(Note 1)
2021

￥

￥

＄

Millions of yen

LIABILITIES AND NET ASSETSLIABILITIESCurrent liabilities:
Short-term borrowings (Note 5) ………………………………….
Current portion of long-term debt (Note 5) ………………………
Notes and accounts payable ………………………………………
Accrued expenses(Note 2(11)) ………………………………………
Accrued income taxes …………………………………………….
Other current liabilities(Notes 2(10) and 5)…………………………

3,800
1,137
2,719
562
291
2,094

1,500
1,340
5,940
734
798
4,328

13,54912,10453,654
6,630
7,208
39,092

Total current liabilities …………………………………………

10,603

14,640132,237

Long-term liabilities:
Long-term debt (Note 5) ………………………………………….
Liability for retirement benefits(Notes 2(12) and 6) …………………
Deferred tax liabilities (Note 9) ……………………………………
Other long-term liabilities(Note 5) …………………………………

4,450
727
9
318

4,610
758
7
271

41,640
6,847
63
2,448

Total long-term liabilities ………………………………………

5,504

5,646

50,998

Total liabilities …………………………………………………

16,107

20,286

183,235

NET ASSETS
Shareholders' equity (Note 7)
Common stock
Authorized: 80,000,000 shares
Issued :25,021,832 shares at 31st March, 2021…………………
Additional paid-in capital …………………………………………
Retained earnings …………………………………………………
Less: Treasury stock at cost ………………………………………

8,933
462
16,827
(11)

8,933
462
19,090(11)80,6884,173
172,433(99)

Total shareholders' equity ………………………………………

26,211

28,474

257,195

Accumulated Other Comprehensive Income
Unrealized gain (loss) on other securities ……………………………
Translation adjustments ……………………………………………
Retirement benefit adjustments……………………………………

1,356
(582)
(59)

2,195
412
101

19,827
3,721
912

Total accumulated other comprehensive income …………………

715

2,708

24,460Non-controlling interests …………………………………………

92

323

2,918

Total net assets …………………………………………………

27,01831,505284,573

Total liabilities and net assets …………………………………

43,12551,791

467,808

Contingent liabilities (Note 12)

The accompanying notes are an integral part of these financial statements.

－9－Consolidated Statements of Income
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESTwo years ended March 31, 2021

Thousands of
U.S. dollars(Note 1 )2021

Millions of yen
2020

2021

Net sales……………………………………………………………………
Cost of sales………………………………………………………………
Gross profit……………………………………………………………

￥
25,255
18,667
6,588￥
29,707
20,0909,617＄
268,332
181,465
86,867

Selling, general and administrative expenses (Notes 2(13) and 8)………

5,776

5,998

54,178Operating Income…………………………………………………….

812

3,619

32,689

92
(50)
(289)
32
48
(167)

61
(55)
(196)
(2)
295
93
196

551
(497)
(1,770)
(18)
2,665
839
1,770

Income before income taxes and non-controlling interests …………

645

3,815

34,459

Income taxes (Note 9)
Current ………………………………………………………………
Deferred …………………………………………………………….

436
(141)

1,001
148

9,042
1,336

Net Income ………………………………………………………….……

350

2,666

24,081Net Income attributable to non-controlling interests …………………

(19)

3

27

Net Income attributable to owners of parent ……………………………

369

2,663

24,054106.49106.4916.00

U.S. dollars(Note 1 )
＄
0.962
0.962
0.145

Other income (expenses)
Interest and dividend income……………………………………………
Interest expenses…………………………………………………………
Foreign exchange gains（losses) …………………………………………
Gain(losses) on sales of investment securities ………………………………
Subsidy income …………………………………………………………
Other, net…………………………………………………………………
Total other income (expenses) ………………………………………

Yen
Amount per share of common stock (Note 2 (16) ):Net Income……………………………………………………………
Diluted net income …………………………………………………
Cash dividends ………………………………………………………

The accompanying notes are an integral part of these financial statements.

－ 10 －

￥

￥
14.75
14.75
16.00

Consolidated Statements of Comprehensive Income
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESTwo years ended March 31, 2021

Thousands of
U.S. dollars(Note 1 )2021

Millions of yen
2020

2021

￥
Net Income …………………………………………………………………
Other Comprehensive Income
Unrealized gain on other securities……………………………………
Translation adjustment…………………………………………………
Remeasurements of defined benefit plans……………………………
Total other comprehensive income
Comprehensive Income(Comprehensive income attributable to)Comprehensive income attributable to owners of the parent……………
Comprehensive income attributable to minority interests…………………

The accompanying notes are an integral part of these financial statements.

－ 11 －

￥

＄

350

2,666

24,081

(61)
(643)
(105)
(809)
(459)

839
1,020
160
2,019
4,685

7,579
9,213
1,445
18,23742,318

(433)
(26)

4,656
29

42,056262

Consolidated Statements of Shareholders' Equity
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESTwo years ended March 31, 2021

Millions of yen
Accumulated other
Shareholders' equity
Number of

Balance at March 31, 2019 ………………………………………

Additional

Unrealized

shares ofCommonpaid-in

Retained

Treasurycommon stock

stock

capitalearnings

stock

￥

￥

￥

￥

25,021,832

8,933

462

16,71625,021,832

8,933

462

16,858interests

Retirement

Non-

Translation

benefitcontrollingTotal

securities adjustments

adjustmentsinterests

net assets￥￥

gain on other

￥

￥

￥

(11)

1,417

53

46

107

27,723

(11)

1,417

53

46

107

27,865142

Cumulative effects of changes in accounting policies ……
Restated balance at March 31, 2019 ……………………………

Non-controllingcomprehensive income

142

Net Income …………………………………………………..

-

-

-

369

-

-

-

-

-

369

Cash dividends…………………………………………………

-

-

-

(400)

-

-

-

-

-

(400)

Net increase of treasury stock ………………………………

-

-

-

-

(0)

-

-

-

-

(0)

Net changes of items other than shareholders' equity …………

-

-

-

-

-

(61)

(635)

(105)

(15)

(816)

16,827

(11)

1,356

(582)

(59)

92

27,018

Balance at March 31, 2020 ………………………………………

25,021,832

8,933

462

Net Income …………………………………………………..

-

-

-

2,663

-

-

-

-

-

2,663

Cash dividends…………………………………………………

-

-

-

(400)

-

-

-

-

-

(400)

Net increase of treasury stock ………………………………

-

-

-

-

(0)

-

-

-

-

Net changes of items other than shareholders' equity …………

-

-

-

-

-

839

994

160

231

2,224

(11)

2,195

412

101

323

31,505

Balance at March 31, 2021 …………………………………….

25,021,832

8,933

462

19,090(0)Thousands of U.S.dollars (Note 1 )Non-controlling

Accumulated other
Shareholders' equity
Number of

Balance at March 31, 2020 ………………………………………

interests

comprehensive income

Additional

Unrealized

shares ofCommonpaid-in

Retained

Treasurycommon stock

stock

capitalearnings

stock

＄

＄

＄

25,021,832

80,688

4,173

151,992(99)＄

Retirement

Non-

Translation

benefitcontrollingTotal

securities adjustments

adjustmentsinterests

net assets＄

gain on other

＄

＄

＄

12,248(5,257)

(533)

＄

831

244,043Net Income …………………………………………………..

-

-

-

24,054

-

-

-

-

-

24,054

Cash dividends…………………………………………………

-

-

-

(3,613)

-

-

-

-

-

(3,613)

Net increase of treasury stock ………………………………

-

-

-

-

(0)

-

-

-

-

Net changes of items other than shareholders' equity …………

-

-

-

-

-

7,579

8,978

1,445

2,087

20,089(99)

19,827

3,721

912

2,918

284,573

Balance at March 31, 2021 …………………………………….

25,021,832

80,6884,173

The accompanying notes are an integral part of these financial statements.

－ 12 －

172,433(0)Consolidated Statement of Cash Flows
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESTwo years ended March 31, 2021

Thousands of
U.S. dollars(Note 1 )Millions of yen

645

2021
￥
3,815

2021
＄
34,459

1,503
46
(92)
50
(22)
2,938
1,413
(68)
48
(65)
20
6,416
92
(54)
(422)
320
6,352

1,601
29
(61)
55
109
2
(678)
(2,190)
(37)
3,079
226
(92)
5,858
60
(54)
(570)
18
5,312

14,461
262
(551)
497
985
18
(6,124)(19,781)(334)
27,811
2,041(831)
52,913542(488)(5,149)163
47,981

Cash Flows from Investing Activities:
Purchase of investment securities …………………………………………………………
Sale of investment securities ……………………………………………………….
Purchase of property, plant and equipment ……………………………………………….
Sale of property, plant and equipment …………………………………………………….
Other, net …………………………………………………………………………………
Net cash provided by (used in) investing activities ………………………………………

(5)(2,463)63(131)(2,536)16(2,691)43(136)(2,768)145(24,307)388(1,228)(25,002)

Cash Flows from Financing Activities:
Increase（decrease) in short-term borrowings …………………………………………….
Proceeds from issuance of long-term debt …………………………………………………
Repayments of long-term debt ……………………………………………………………
Purchase of treasury stock ………………………………………………………………
Cash dividends…………………………………………………………………………..
Other,net………………………………………………………………………………
Net cash provided by (used in ) financing activities ……………………………………..

(1,700)
1,500
(910)
(0)
(400)
(50)
(1,560)(2,300)1,500(1,137)
(0)
(400)
96
(2,241)(20,775)
13,549(10,270)(0)(3,613)867(20,242)

Effect of exchange rate changes on Cash and Cash Equivalents …………………………..
Net increase(decrease) in Cash and Cash Equivalents ………………………………………
Cash and Cash Equivalents at Beginning of Period …………………………………………

(60)
2,196
7,627

142
445
9,823

1,283
4,020
88,727

Cash and Cash Equivalents at End of Period (Note2(3)) ……………………………………

9,823

10,26892,747

Cash Flows from Operating Activities:
Net Income before income taxes and non-controlling interests ……………………………
Adjustments for:
Depreciation ………………………………………………………………………….
Amortization of goodwill ……………………………………………………………
Interest and dividends income ………………………………………………………..
Interest expenses ……………………………………………………………………..
Foreign exchange losses (gains) ………………………………………………………
Loss (gain) on sales of investment securities ……………………………………………
(Increase) decrease in trade notes and accounts receivable ………………………………
(Increase) decrease in inventories …………………………………………………………
(Increase) decrease in other current assets ……………………………………………….
Increase (decrease) in notes and accounts payable ………………………………………
Increase(decrease) in accrued and other current liabilities …………………………………
Other, net …………………………………………………………………………………
Sub-total …………………………………………………………………………………
Interest and dividends received ……………………………………………………………
Interest paid ………………………………………………………………………………
Income taxes paid …………………………………………………………………………
Income taxes refund ………………………………………………………………………
Net cash provided by (used in) operating activities ……………………………………..

The accompanying notes are an integral part of these financial statements.

－ 13 －

2020￥

Notes to the Consolidated Financial Statements
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIES

1.

Basis of presenting Consolidated Financial Statements
TOWA CORPORATION (the ”Company”) and its domestic subsidiaries maintain their accounts andrecords in conformity with accounting principles and practices generally accepted in Japan (“JPGAAP”),
which are different, in certain respects from the application and disclosures and disclosure requirements ofInternational Financial Reporting Standards (“IFRS”).
The Company’s overseas subsidiaries maintain their accounts and records in conformity with generally
accepted accounting principles and practices prevailing in their respective countries of domicile, and theCompany makes necessary adjustments to its consolidated accounting process in case there are considerable
differences as to application and disclosure requirements from International Financial Reporting Standards.
The accompanying consolidated financial statements of the Company are prepared on the basis ofaccounting principles generally accepted in Japan, as required by the Financial Instruments and Exchange
Act of Japan.
In preparing the accompanying consolidated financial statements, certain reclassifications andrearrangements have been made to the consolidated financial statements issued domestically in order topresent them in a format which is more familiar to readers outside Japan.
The consolidated financial statements are not intended to present the consolidated financial position,
results of operations and cash flows in accordance with the accounting principles and practices generally
accepted in countries and jurisdictions other than Japan.
The translation of the Japanese yen amounts into U.S. dollars is included solely for the convenience ofthe reader, using the approximate exchange rate at March 31, 2021, which was ¥110.71 to US$1.00. These
convenience translations should not be construed as representations that the Japanese yen amounts havebeen, could have been, or could in the future be, converted into U.S. dollars at this or any other rate ofexchange.

2. Summary of Significant Accounting Policies(1) Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and its
subsidiaries. All significant inter-company transactions, account balances and unrealized profits have been
eliminated in consolidation. Fiscal year end of some subsidiaries is December 31, which differs from thatof the Company, March 31, and the Company consolidate such subsidiaries using their provisional
settlements as of March 31. Shown below are the significant subsidiaries of the Company.

－ 14 －

Subsidiaries(All subsidiaries have been consolidated)
Name
BANDICK CORPORATIONTOWA LASERFRONT CORPORATIONTOWATEC Co., Ltd.
TOWAM Sdn. Bhd.
TOWA (Suzhou) Co., Ltd.
TOWA (Nantong) Co., Ltd.
TOWA KOREA Co., Ltd.
TOWA Asia-Pacific Pte. Ltd.
TOWA (Shanghai) Co., Ltd.
TOWA TAIWAN Co., Ltd.
TOWA Semiconductor Equipment
Philippines Corp.
TOWA THAI COMPANY LIMITEDTOWA USA Corporation
TOWA Europe GmbHTOWA Europe B.V.

Ownership
100 %
100
100
100
100
90
100
100
100
100
100

Country of Incorporation
Japan
Japan
Japan
Malaysia
People’s Republic of China
People’s Republic of China
Republic of Korea
Republic of Singapore
People’s Republic of China
TaiwanRepublic of the Philippines

100
100
100
100

Kingdom of Thailand
United States of America
Federal Republic of Germany
Kingdom of the Netherlands(2) Translation of Foreign Currency Items
In accordance with the Japanese accounting standard, every monetary assets and liabilities denominatedin foreign currencies are principally translated into Japanese yen at the exchange rate in effect at the balance
sheet date. The foreign exchange gains and losses from translation are recognized in the statements ofincome.
With respect to financial statements of overseas subsidiaries, the balance sheet accounts are translated
into Japanese yen at the exchange rates in effect at the balance sheet date except for shareholders’ equity,which are translated at the historical rates. And revenue and expenses are translated at the average exchange
rates. The differences resulting from translation in this manner are included in “Translation adjustments”
which is listed in Accumulated Other Comprehensive Income in the accompanying consolidated balance
sheets.
(3) Cash and Cash Equivalents
For the purposes of cash flow statements, cash and cash equivalents comprise cash in hand, deposits
held at call with banks, net of overdrafts and all highly liquid investments with maturities of three months
or less.
Components of cash and cash equivalents as of March 31, 2020 and 2021 are as follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2020
2021
2021
Cash on hand and at banks
Less: Time deposits with deposit termof over three months
Cash and cash equivalentat end of year

¥10,016¥10,686$96,522

¥193

¥418

$3,775¥9,823¥10,268$92,747－ 15 －

(4) Securities
Securities are classified into four categories.
Categorization and valuation for investments in securities are as follows:1) Trading Securities
・ Such securities held for the purpose of generating profits from short-term price movements.
・ Unrealized gain/loss at the end of period resulting from the valuation by applying the fairvalue at such date is directly debited/credited to income.
・ Such securities are treated in current assets in the balance sheet.
2) Held-to-maturity Debt Securities
・ Debt securities whose maturity dates are predetermined and are to be redeemed at par, acquiredwith intention to hold to their maturity dates.
・ The difference between the acquisition cost and the amount expected to gain at maturity isamortized or appreciated over the remaining period to maturity date. The amount amortized orappreciated is charged/credited to income for the respective period as interest expense orinterest income, as the case may be.
・ Unrealized loss will be required to be charged to income as impairment unless unrealized loss
is expected to recover within a reasonable period.
3) Shares in equity of Subsidiaries and Affiliates
・ Those securities are carried at cost unless such investment is regarded impaired.
4) Other Securities
・ Such securities other than those categorized in 1 to 3 above.
・ Other Securities with market quotation are valued at such market price at the end of period,
and those without market quotation are valued at cost.
・ Unrealized gain/loss at the end of period resulting from such valuation is charged to
Accumulated Other Comprehensive Income as “Unrealized gain/ (loss) on Other Securities”
after netting off the deferred income taxes thereto.
・ Unrealized loss which it incurred as the fair value is less than 50% of its acquisition cost will
be required to be charged to income.
・ Unrealized loss which it incurred as the fair value is 30% ~50% of its acquisition cost will be
required to be charged to income unless the unrealized loss is expected to recover within areasonable period.
The moving average method is applied for calculation of the costs of securities.
(5) Inventories
Inventories are mainly stated at the lower of cost or net selling value, the cost being determined bymainly specific identification method for finished products and work-in-process, by mainly moving-averagemethod for raw materials and by the last purchase cost method for supplies.
(6) Allowance for Doubtful Accounts
The Company and its subsidiaries have provided the allowance based on the past uncollectible
receivable experience for a certain reference period. Furthermore, for receivables which are from the
debtors with financial difficulty, the allowance is provided for estimated uncollectible amounts individually.

－ 16 －

(7) Property, Plant and Equipment
Property, plant and equipment are stated at cost.
Depreciation for property, plant and equipment of the Company and its domestic subsidiaries iscalculated by the declining-balance method, except for buildings acquired on and after April 1, 1998 andstructure acquired on and after April 1, 2016 which are applied the straight-line method, over the estimateduseful lives of the assets.
The principal estimated useful lives are as follows:
Buildings and structures
3 〜 50 years
Machinery and equipment
2 〜 10 years
Depreciation for those of overseas subsidiaries is computed by the straight-line method.
(8) Leased Assets
Leased assets are depreciated to a residual value of zero by the straight-line method using the contract
term as the useful life.
(9) Goodwill
Goodwill is amortized over a period of 5〜8 years by the straight-line method.
(10) Product Warranties
The Company and its subsidiaries have accounted for the estimate amounts of maintenance expenses as
the product warranties, which corresponded to the sales based on the prior track record for the outcome ofmaintenance expenses of the sold products during the period of warranty.
As of March 31, 2021, the liability for expected warranty costs was ¥216 million ($1,951thousand).
(11) Accrued Bonus
The Company and its subsidiaries provide for accrued bonuses to directors and employees for the
expected payment of their bonuses for the current fiscal year to those directors and employees serving at
the end of the fiscal year.
(12) Accounting for retirement Benefits
1) Allocation of expected retirement benefit payments
When calculating retirement benefit obligations, the benefit formula basis is used to allocate expected
retirement benefit payments to the period as of the fiscal year-end.
2) Amortization of actuarial gains and losses and past service cost
Actuarial gains and losses are amortized by the declining-balance method over a period, which iswithin the estimated average remaining service period of the eligible employees at the time they arise(mainly 10 years) and charged to income from the fiscal year following each respective incurrence.
Past service cost is amortized by the straight-line method over a period of 10 years, which is within
the estimated average remaining service period of the eligible employees at the time they arise.
3) Method for treating unrecognized actuarial gains or losses
Unrecognized actuarial gains or losses are recorded in retirement benefit adjustments of accumulated
other comprehensive income under net assets, after tax effects have been adjusted.
(13) Research and Development Costs
Research and development expenditure is charged to income when incurred.

－ 17 －

(14) Income Taxes
Income taxes of the Company and its domestic subsidiaries consist of corporate income taxes, local
taxes and enterprise taxes. Enterprise taxes are deductible when paid for the computation of other taxes.
Deferred income taxes are recognized using the asset and liability approach, whereby deferred tax assets
and liabilities were recognized in respect of temporary differences between the tax basis of assets andliabilities and those as reported in the financial statements.
(15) Appropriation of Retained Earnings
Under the Japanese Companies Act and the Articles of Incorporation of the Company, the appropriationof retained earnings or disposition of accumulated deficit could be adopted by the Board of Directors. The
appropriations of retained earnings reflected in the accompanying consolidated financial statements include
the results of such appropriations applicable to the immediately preceding financial year as approved by the
Board of Directors, and effected, during the relevant year. Dividends are paid to shareholders on theshareholders' register as at the end of each financial year.
(16) Per Share Information
Net income per share and diluted net income per share are computed based on the weighted-average
number of shares of common stock outstanding during each year and stock splits are reflected in thecalculation of the weighted-average number of shares of common stock.
Cash dividend per share is the total of the per-share amounts of interim cash distribution and the yearend cash dividends for the income of the respective financial periods.
3.

Securities(1) The following is a summary of investments in affiliates and other securities at March 31, 2020:
Other securities:
Millions of yen
2020
Book Value
Unrealized
Unrealized(Estimated
Cost
gains
lossesfair value)
Market value available:
Equity securities¥ 783¥ 1,907¥ 28¥ 2,662¥ 783¥ 1,907¥ 28¥ 2,662
Market value not available:
Equity securities
28
28
Other securities total¥ 811¥ 1,907¥ 28¥ 2,690(2) The following is a summary of investments in affiliates and other securities at March 31, 2021
Other securities:
Millions of yen
2021
Book Value
Unrealized
Unrealized(Estimated
Cost
gains
lossesfair value)
Market value available:
Equity securities¥ 766¥ 3,062¥ ¥ 3,828¥ 766¥ 3,062¥ ¥ 3,828
Market value not available:
Equity securities
28
28
Other securities total¥ 794¥ 3,062¥ ¥ 3,856－ 18 －

Other securities:
Thousands of U.S. dollars (Note 1)
2021
Unrealized
gains

Unrealized
lossesBook Value(Estimatedfair value)$ 6,919$ 6,919$ 27,658$ 27,658$ $ -$ 34,577$ 34,577

253$ 7,172$ 27,658$ -253$ 34,830

Cost
Market value available:
Equity securities
Market value not available:
Equity securities
Other securities total
4.

Estimated Fair Value of Financial Instruments
As of March 31, 2020 and 2021, the book value and fair value of financial instruments and thedifferences between these figures are set forth in the table below. The table does not include financial
instruments for which it is extremely difficult to determine the fair value.

Cash and deposits
Notes and accounts receivable
Less:Allowance for Doubtful Accounts
Investment securities
Total assets
Notes and accounts payable
Short-term borrowings
Accrued Income taxes
Long-term borrowings
Total liabilities

Book Value¥ 10,016
7,107(2)¥ 7,105
2,662¥ 19,783

Investment securities
Total assets
Notes and accounts payable
Short-term borrowings
Accrued income taxes
Long-term borrowings
Total liabilities

Difference¥ -¥ 7,105
2,662¥ 19,783¥ ¥ -¥ 2,719
3,800
291
5,587
¥ 12,397¥ 2,719
3,800
291
5,579
¥ 12,389

¥ (8)
¥ (8)

¥ -

¥ (0)

¥ (0)

Derivative financial instruments

Cash and deposits
Notes and accounts receivable
Less:Allowance for Doubtful Accounts

Millions of yen
2020
Fair Value¥ 10,016

Book Value¥ 10,686
8,943(0)¥ 8,943
3,828¥ 23,457

Millions of yen
2021
Fair Value¥ 10,686

Difference¥ -¥ 8,943
3,828¥ 23,457¥ ¥ -¥ 5,940
1,500
798
5,950
¥ 14,188¥ 5,940
1,500
798
5,937
¥ 14,175¥ (13)¥ (13)

¥ -

¥ -

¥ -

Derivative financial instruments－ 19 －Cash and deposits
Notes and accounts receivable
Less:Allowance for Doubtful Accounts
Investment securities
Total assets
Notes and accounts payable
Short-term borrowings
Accrued income taxes
Long-term borrowings
Total liabilities

Thousands of U.S. dollars (Note 1)
2021
Book Value
Fair Value
Difference$ 96,522$ 96,522$ 80,779(0)$ 80,779$ 80,779$ 34,577
34,577$ 211,878$ 211,878$ $ 53,654
13,5497,208
53,744$ 128,155$ 53,654
13,5497,208
53,627$ 128,038$(117)$ (117)

$ -

$-

$ -

Derivative financial instruments

Financial instruments for which it is extremely difficult to determine the fair value as of March 31, 2020
and 2021 were as follows, respectively.

Millions of Ｙen
2020
2021
¥ 28
¥ 28

Unlisted equity securities

Thousands of
U.S. dollars(Note 1)
2021
$ 253

Because no quoted market prices are available and it is extremely difficult to determine the fair value,
the above financial instruments are not included in “Investment securities” in the preceding table.
The redemption schedule for bonds and long-term borrowings is disclosed in Note6.
5.

Short-term Borrowings and Long-term Debt
Short-term borrowings represent loans from banks. The annual average interest rates applicable to shortterm borrowings at March 31, 2020 are 0.3% and 2021 are 0.3%, respectively.
Long-term debt as of March 31, 2020 and 2021 consisted of the following:

Millions of Ｙen
2020
2021
¥ 5,587¥ 5,950404
361(1,223)(1,430)¥ 4,768¥ 4,881

Borrowings from financial institutions
Other Long term liabilities
Less: Portion due within one year

－ 20 －

Thousands of
U.S. dollars(Note 1)2021
$ 53,744
3,261(12,917)$ 44,088

The aggregate annual maturity of long-term debt after March 31, 2021 is summarized as follows:
Thousands of
U.S. dollars
Millions of Ｙen
Years ending March 31,(Note 1)2022
¥ 1,429$ 12,908
2023
1,378
12,4472024
1,352
12,2122025 and thereafter
2,151
19,429¥ 6,310$ 56,996
Regarding loan payables, commitment line contracts with limits of ¥2,500 million ($22,582 thousand)and term loan contract with limit of ¥3,000 million ($27,098 thousand) respectively include financial
covenant terms. The contractor triggers acceleration and is enforced to repay the full principal and interest
if the contractor breaches either of the following terms.
(Financial covenant terms included in the syndicate loan contract)(1) The amount of Net Assets on the consolidated balance sheets at the end of each fiscal year and eachsemiannual period must be maintained ¥19,540 million ($176,497 thousand) or more.
(2) The ordinary losses in both consolidated statements of income for each fiscal year must not be existed
in two successive periods on and after the fiscal year ended March 31, 2019.
(Financial covenant terms included in the term loan contract)(1) The amount of Net Assets on the consolidated balance sheets at the end of each fiscal year and eachsemiannual period must be maintained ¥19,410 million ($175,323 thousand) or more.
(2) The ordinary losses in both consolidated statements of income for each fiscal year must not be existed
in two successive periods on and after the fiscal year ended March 31, 2020.
6.

Retirement Benefits
The Company and its consolidated subsidiaries have set up funded and unfunded defined benefit plansand defined contribution plans to provide for employees’ retirement benefits. Under the defined benefit
pension plans, which are funded, lump-sum or pensions are paid based on accumulated points according toa qualification grade. Under the lump-sum payment plans, which are unfunded, lump-sum payments areprovided mainly based on the salary amount and service periods.
Certain consolidated subsidiaries have adopted a simplified method of calculation with liability for
retirement benefits and retirement benefits expense.
(1) Defined benefit plans
1) The changes in defined benefit obligation for the year ended March 31, 2020 and 2021 were as follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2020
2021
2021
Retirement benefit obligations at beginning of year
¥2,399¥2,538$ 22,925
Increase resulting from acquisition of a consolidated
subsidiary
Service cost
205
204
1,843
Interest cost8
981
Actuarial (gain) loss
17
(12)
(108)
Retirement benefits paid
(76)
(151)
(1,364)
Others(15)
13
117
Retirement benefit obligations at end of year
2,538
2,601
$ 23,494－ 21 －

2) The changes in plan assets for the year ended March 31, 2020 and 2021 were as follows:

Millions of Yen
2020
2021
¥1,877¥1,882
56
56
(127)
210
131
130
(56)
(105)
1,881
2,173

Plan assets at beginning of year
Expected return on plan assets
Actuarial gain (loss)
Contributions from the employer
Retirement benefits paid
Plan assets at end of year

Thousands of
U.S. dollars(Note 1)2021
$ 16,999
506
1,897
1,174
(948)
$ 19,628

3) The balance of retirement benefit obligations and plan assets at fair value as of March 31, 2020 and 2021,
liabilities and assets recognized in the consolidated balance sheet were as follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2020
2021
2021
Funded retirement benefit obligations¥ 1,811¥ 1,843$ 16,647
Plan assets at fair value(1,881)(2,173)(19,628)(70)(330)(2,981)
Unfunded retirement benefit obligations
727
758
6,847
Net liability recognized in the consolidated balance sheet
¥ 657
¥ 428
$ 3,866
Liability for retirement benefits
Asset for retirement benefits
Net liability recognized in the consolidated balance sheet

727
(70)
¥ 657

758
(330)
¥ 428

6,847
(2,981)$ 3,866

4) The components of retirement benefit expenses for the year ended March 31, 2020 and 2021 were as
follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2020
2021
2021
Service cost
¥ 206
¥ 203
$ 1,834
Interest cost7981
Expected return on plan assets
(56)
(56)
(506)
Amortization of actuarial (gain) loss
7
29
262
Amortization of past service cost
(17)
(17)
(154)
Retirement benefit expenses
¥ 147
¥ 168
$ 1,5175) Remeasurements of defined benefit plans in other comprehensive income (before tax effect) for the year
ended March 31, 2020 and 2021 are as follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2020
2021
2021
Past service cost
¥ 17
¥ 17
$ 154
Actuarial gain (loss)
132
(248)
(2,240)Total¥ 149¥ (231)$ (2,086)－ 22 －

6) Retirement benefit adjustments in accumulated other comprehensive income (before tax effect) as ofMarch 31, 2020 and 2021 are as follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2020
2021
2021
Unrecognized past service cost
¥ 118
¥ 101
$ 912
Unrecognized actuarial gain (loss)
(198)
50
452
Total
¥ (80)¥ 151$ 1,364
7) Plan assets, by major category, as a percentage of total plan assets as of March 31, 2020 and 2021 wereas follows:
2020
2021
Debt securities
42%
37%
Equity securities
31%
33%
General accounts at life insurance companies
20%
17%
Others
7%
13%
Total
100%
100%
The expected rate of return on plan assets is determined considering the allocation of the plan assets
expected currently and in the future and the long-term rates of return which are expected currently and in
the future from the various components of the plan assets.
8) The major assumptions used in accounting for the above plans as follows:
2020
Discount rate
(0.001%)
Expected long-term rates of return on plan assets
3.00%
Expected pay raise rate ※7.1%※Expected pay raise rate is an expected rate of the increase of the retirement benefit points.

2021
0.074%
3.00%
7.1%(2) Defined Contribution plans
Certain consolidated subsidiaries have defined contribution plans and amount of the contribution for theyear ended March 31, 2020 and 2021 were ¥50million and ¥55million ($497thousand).
7.

Shareholders’ Equity
Under the Japanese Companies Act the appropriation of retained earnings or disposition of accumulated
deficit could be adopted by the Board of Directors.
The Japanese Companies Act requires that an amount equal to 10% of dividends must be appropriatedas a legal reserve (a component of retained earnings) or as additional paid-in capital depending on the equity
account that was charged upon the payment of such dividends, until the aggregate amount of legal reserve
and additional paid-in capital equals 25% of the common stock.
Under the Japanese Companies Act, although the entire amount of the issue price of new shares isrequired to be accounted for as common stock a company may, by resolutions of its Board of Directors,
account for an amount not exceeding one-half of the issue price of such new shares as additional paid-in
capital.

8.

Research and Development Costs
Research and development costs charged to income for the years ended March 31, 2020 and 2021 were
¥330million and ¥749million ($6,765 thousand), respectively.

－ 23 －

9.

Income Taxes
The company is subject to a number of different income taxes, which in the aggregate, result in astatutory tax rate in Japan of approximately 30.5% for the years ended of March 31, 2020 and 2021.
The deferred tax assets and deferred tax liabilities at March 31, 2020 and 2021 are as follows:
Thousands of
U.S. dollars
Millions of Ｙen(Note 1)
2020
2021
2021
Deferred tax assets:
Inventory write down
¥ 732
¥ 608
$ 5,492
Impairment loss of fixed assets
329
314
2,836
Retirement and severance benefits
232
169
1,527
Trial product for development
504
541
4,887
Net operating loss carried forward
216
217
1,960
Other, net
649
793
7,163
Valuation Allowance
(703)
(725)
(6,549)1,959
1,917
17,316
Deferred tax liabilities:
Other, net(839)(1,354)(12,230)(839)(1,354)(12,230)
Net deferred tax assets/(liabilities)¥ 1,120¥ 563$ 5,086

10. Other Comprehensive Income(Loss)
The reclassification adjustments and tax effects for components of other comprehensive income (loss)
for the year ended March 31, 2020 and 2021 are as follows:
Thousands of
U.S. dollars
Millions of Ｙen(Note 1)
2020
2021
2021
Unrealized gain on other securities:
Amount arising during the year
¥ (62)¥ 1,181$ 10,668
Reclassification adjustments for losses
2
18(gains) realized in net income
Before Tax effect
(62)
1,183
10,686
Tax effect1(344)(3,107)
Total unrealized gain on other securities
Translation adjustments:
Amount arising during the year
Reclassification adjustments for losses(gains) realized in net income
Total translation adjustments
Remeasurements of defined benefit plans:
Amount arising during the year
Reclassification adjustments for losses(gains) realized in net income
Before Tax effectTax effectTotal remeasurements of defined benefit
plans
Total other comprehensive income (loss)

(61)

839

7,579

(643)

1,020

9,213

-

-

-

(643)

1,020

9,213

(139)

219

1,978

(10)

12

108

(149)
44

231
(71)

2,086
(641)

(105)

160

1,445

¥ (809)¥ 2,019$ 18,237－ 24 －

11. Leases(Finance leases as lessee)
The Company and its consolidated subsidiaries have been utilizing finance lease arrangements otherthan those deemed to transfer the ownership of the leased property to the lessee to employ certain machineryand equipment.
(Operating leases as lessee)
Future minimum lease payments for the remaining lease periods as March 31, 2020 and 2021 are as
follows:
Thousands of
U.S. dollars
Millions of Ｙen(Note 1)
2020
2021
2021
Due within one year
¥ 1
¥ 1
$ 9
Due over one year
4
3
27
Total
¥5
¥4
$ 36
※Lease contracts recognized in the consolidated balance sheet by IFRS16 aren’t included this table.
12. Contingent Liabilities
The Company and its consolidated subsidiaries have no significant contingent liabilities.
13. Segment Information(1) Segment by products
Year ended March 31, 2020

Ⅰ.Sales and operating income
Net sales to customers
Inter-segment sales
Cost of sales andOperating expenses
Operating income (loss)
Ⅱ.Assets
Total assets
Depreciation and amortization
Amortization of goodwill
Capital expenditure

Millions of Ｙen
Semiconductor
equipment

Fine plastic
mold

Laser
Processing
machines

Elimination/
Unallocated
AssetsConsolidated¥ 21,904
21,904¥ 1,614
1,614¥ 1,737
1,737¥-¥ 25,255
25,25521,286
¥ 618

1,371
¥ 243

1,786
¥ (49)¥-

24,443¥ 812¥ 40,058¥ 1,382¥ 46¥ 2,671¥ 1,812¥ 87¥ ¥ 71¥ 1,255¥ 34¥ ¥ 32¥ ¥ ¥ ¥ -¥ 43,125¥ 1,503¥ 46¥ 2,774－ 25 －

Year ended March 31, 2021

Millions of Ｙen
Semiconductor
equipment

Fine plastic
mold

Laser
Processing
machines¥ 26,536
26,536¥ 1,8071,807¥ 1,364
1,364¥-¥ 29,707
29,707

Cost of sales andOperating expenses
Operating income (loss)

23,203¥ 3,333

1,417
¥ 390

1,468
¥ (104)¥-26,088¥ 3,619

Ⅱ.Assets
Total assets
Depreciation and amortization
Amortization of goodwill
Capital expenditure¥ 48,367¥ 1,463¥ 29¥ 3,177¥ 2,051¥ 89¥ ¥ 252¥ 1,373¥ 37¥ ¥ 20¥ ¥ ¥ ¥ -¥ 51,791¥ 1,589¥ 29¥ 3,449

Ⅰ.Sales and operating income
Net sales to customers
Inter-segment sales

Year ended March 31, 2021

Elimination/
Unallocated
AssetsConsolidated

Thousands of U.S. dollars (Note 1)
Semiconductor
equipment

Fine plastic
mold

Laser
Processing
machines$ 239,689
239,689$ 16,323
16,323$ 12,320
12,320$-$ 268,332
268,332

Cost of sales andOperating expenses
Operating income (loss)

209,584$ 30,105

12,799$ 3,524

13,260$ (940)$-235,643$ 32,689

Ⅱ.Assets
Total assets
Depreciation and amortization
Amortization of goodwill
Capital expenditure$ 436,880$ 13,215$ 262$ 28,697$ 18,526$ 804$ $ 2,276$ 12,402$ 334$ $ 181$ $ $ $ -$ 467,808$ 14,353$ 262$ 31,154

Ⅰ.Sales and operating income
Net sales to customers
Inter-segment sales

Elimination/
Unallocated
AssetsConsolidated(2) Sales by region

Year ended March 31
Japan
Overseas
Asia
America
Other
Overseas total
Consolidated sales

Millions of Ｙen
2020
2021
¥ 4,483¥ 3,841
19,678697
397
20,772¥ 25,255－ 26 －

23,943
1,537
386
25,866¥ 29,707

Thousands of
U.S. dollars(Note 1)2021
$ 34,694
216,268
13,883
3,487
233,638$ 268,332

Corporate Information
as of August 30, 2021
Corporate Data
Corporate Name:
Headquarters/Factory:

Board of Directors

TOWA CORPORATION

President & CEO

5 Kamichoshi-cho, Kamitoba,

Hirokazu Okada

Minami-ku, Kyoto 601-8105, Japan
Established:

April 17, 1979

Operations:

Develop, design, manufacture, and sell
precision molds, manufacturing systems forelectronic components, precision-molded andassembly products, medical-use equipment,
laser processing equipment, and precision
machining tools.
Other related business.

(consolidated)

Director
Hiroshi Uragami
Koichi Ishida
Nobutaka Shibahara
Director
Full-time Audit and Supervisory
Committee Member

Paid-in Capital:¥8,932,627,777

Hisayoshi Kobayashi

Common Stock
Authorized:

80,000,000

Issued Number of Shares:

25,021,832

Audit and Supervisory Committee

100

Member

Unit for Trading:
Stock Listings:
Transfer Agents:

External Director

First Section of the Tokyo Stock Exchange

Hajime Kuwaki

Mizuho Trust & Banking Co., Ltd

Daisuke Wake
Miho Goto

Fiscal Year:

From April 1 to March 31

Number of Employees:

TOWA Corporation: 549（as of March 31, 2021）

TOWA Group(consolidated): 1,633

URL:
Subsidiaries andAffilated Companies:

https://www.towajapan.co.jp
BANDICK CORPORATIONTOWATEC Co., Ltd.
TOWA LASERFRONT CORPORATIONTOWA Asia-Pacific Pte. Ltd.
TOWAM Sdn. Bhd.
TOWA Semiconductor Equipment Philippines Corp.
TOWA THAI COMPANY LIMITEDTOWA USA Corporation
TOWA Europe B.V.
TOWA Europe GmbHTOWA (Suzhou) Co., Ltd.
TOWA (Shanghai) Co., Ltd.
TOWA (Nantong) Co., Ltd.
TOWA TAIWAN Co., Ltd.
TOWA KOREA Co., Ltd.
－ 27 －

5 Kamichoshi-cho, Kamitoba, Minami-ku,
Kyoto 601-8105, JapanTEL (075) 692-0250 FAX (075) 692-0270