ANNUALREPORT2

1

0

4

A MESSAGE TO OUR SHAREHOLDERS
Greetings
Since its founding in Japan’s ancient capital, Kyoto, in April 1979, TOWA Corporation has
consistently developed proprietary technologies and created numerous de facto standards. Our
primary operations are composed of development, manufacturing and sales of resin
encapsulation systems for semiconductors and LED resin sealed devices, singulation systems
and precision molds for manufacturing semiconductors, as well as the manufacture and sales offine plastic molded products. We maintain a leading share of the global market for our mainstay
semiconductor resin encapsulation systems, which enjoy an excellent reputation with users.

Economic Overview
Japanese economy in the past fiscal year moved on more to a recovery with growing householdspending and corporate earnings, supported by high stock prices and a weaker yen resulting from anaggressive monetary policy and economic stimulus packages. Additional anti-recession packages,
which aim to establish a virtuous cycle from the expanded corporate earnings to the rise inemployment, wages and consumption, also raised people's expectations for further growth byshowing a steady path for escaping from the long-term deflation.

Performance
In the semiconductor industry, more manufacturers today suffer from a burden of larger
investment required for microfabrication and higher functionality, and large enterprises withfinancial and technological strengths are getting prevailing in the market. Movement of M&A andindustry reorganization is getting active also among manufacturing equipment manufacturers. Even
the world-leading companies have already announced management integration. As for a demand forsemiconductors, sales for computers were low except for temporary rise due to replacement before
the end of Windows XP support. On the other hand, sales for smartphones remained strong,
supported by adoption of the application processor for high-end models into middle-/low-end
models.
In such circumstances, we have actively implemented our strategies such as building up of a"market-oriented" system by staffing technical personnel to sales companies so that we can provide
our customers with optimum suggestions in real time, building up of special lines for repeatedly
ordered molds in Korea, and launching new products into the Chinese market. In addition, throughour evaluation labos located in Europe and the United States, we created a strong relationship with
IDM development departments, foundry manufacturers and fabless companies by approaching themin an early stage of developing semiconductor devices, and finally developed a new packaging
technology as a collaborative work. In addition to these activities, we held a private show in
December 2013 so that many customers from Japan and overseas can see our technological prowess－1－

at hand. In the show, we introduced the latest six equipment models, nanotechnology-based
microfabrication technology, and BANCERA or an innovative mold made of a new material that canbe easily demolded and thus can reduce cleaning frequency.
As a result, the amount of orders of the fiscal year is 19,921 million yen (44.8% rise with 6,161
million yen more than the previous year), the amount of sales is 17,165 million yen (4.3% rise with
711 million yen more than the previous year), the operating income is 457 million yen (comparedwith the loss of 439 million yen of the previous year), the ordinary income is 666 million yen (0.6%
rise with 3 million yen more than the previous year), and the net income of the year is 568 million
yen (17.8% fall with 123 million yen less than the previous year).

Looking Ahead
Semiconductor manufacturers seem to continue aggressive capital investment in 2014. For DRAM,
although investment will be mainly in microfabrication to prepare for the 20-nm demands, somemanufacturers have decided to invest in building new factories to increase their production capacity.
For NAND flash memory, in addition to investment in microfabrication and production capacity,
investment in 3D-NAND flash memory will also increase.
In such circumstances, with our strength in compression technology, we aim to expand our scale andimprove our portfolio by penetrating more into the area of semiconductor molding equipment andentering into new areas such as in-vehicle products and electronic components. As for the businessof fine plastic molding, a stable demand is expected due to expansion of the medical market driven
by increasing needs for highly advanced medical treatment and arrival of the aging society.
We continue to place emphasis on "manufacturing company" as we have always been. The valueof our "manufacturing company" is not simply limited to "technologies" for "manufacturing." We
consider the "value" of "manufacturing company" is a power to open up a new market where we canstart business activities, i.e., the "technical ability to create a new market."
Our faithful, united efforts to date to foster and practice the "technical ability to create a newmarket" have made us a world-leading company in the semiconductor molding business. We see
today what the industrial society expects from us is to contribute more to improvement of the society
and industry by creating a "new market" with our "creativity" in addition to the existing businesssegments where we already have a large market share.
Reflecting the factors above, we have set "TOWA 10-year vision" as our long-term management
vision aiming at expansion of the existing businesses, wide application of the core technologies, andcreation of a "new market" to improve the portfolio. To achieve its goals, we have developed the
mid-term (3-year) management plan that includes various projects and strategies as milestones.
The outline of "TOWA 10-year vision" and the mid-term (3-year) management plan is:(1) "TOWA 10-year vision"① Subject"Challenge to SHINKA (Creating value through innovation) of Manufacturing Company"－2－② Main Objective◎ Expanding and gaining a higher share in the existing businesses, and applying
the core technologies to new applications◎ Creating a "new market" to expand the business scale and improve the portfolio◎ Increasing our own world's best businesses◎ Globalizing human resources and business activities and systems◎ Doubling TOWA followers(2) The mid-term (3-year) management plan
① Basic Policy
Practice "To Create a Market" of Manufacturing② Main Content
Based on the "growth strategy" and "strengthening the foundation" approaches, we will workon various strategies and measures including:《Growth strategy》◎ Leveraging our compression technology to expand the molding business and applying it
also to various other businesses◎ Gaining a higher share in the singulation business◎ Creating a "new market" and growing it to a profitable business《Strengthening the foundation》◎ Rebuilding the marketing channel and system◎ Building a high productivity system◎ Developing global-minded employees(3) Performance plan
( millions of yen)

Net sales(breakdown)

FY2015FY2016FY2017

Net sales
Semiconductor manufacturing
equipment business
LED business

18,00019,00021,00015,50016,00016,500

1,100

1,200

1,500

Fine plastic molding business

1,200

1,300

1,500

"New market" business

200

500

1,500

Operating income

1,000

1,500

2,100

Ordinary income

900

1,400

2,000

Net income

800

1,300

1,400

We look forward to your continuing support and assistance in the future.
We would like to express our heartfelt appreciation for your support.
August 2014
Hirokazu Okada
President & COO－3－

Consolidated Balance Sheets
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESMarch 31, 2013and 2014

2013

2014

Thousands of
U.S. dollars(Note 1)
2014

￥

￥

＄

Millions of yen

ASSETS
Current assets:
Cash on hand and at banks ……………………………………

5,608

5,922

57,540Inventories ……………………………………………………
Deferred tax assets (Note 10) …………………………………
Other current assets …………………………………………..

3,811
(2)
3,809
3,294
44
257

6,255
(1)
6,254
3,175
48
314

60,776(10)
60,76630,849466
3,051

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

13,012

15,713

152,672

Land ……………………………………………………………
Buildings and structures ………………………………………
Machinery and equipment ……………………………………
Construction in progress ………………………………………
Less: Accumulated depreciation ……………………………

4,214
12,345
10,91725(17,284)

4,191
12,544
12,092
162(18,366)

40,721
121,881
117,489
1,574(178,449)

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

10,217

10,623103,216

Other assets:
Investment securities (Note 4) ………………………………..
Deferred income taxes (Note 10) ……………………………..
Other ………………………………………………………….

1,646
75
947

1,829
128
839

17,771
1,244
8,152

Total other assets ………………………………………….

2,668

2,796

27,167

Total assets ………………………………………………………

25,897

29,132

283,055

Notes and accounts receivable :Trade ……………………………………………………….
Less: Allowance for doubtful accounts ……………………

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

－4－Consolidated Balance Sheets
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESMarch 31, 2013and 2014

2013

2014

Thousands of
U.S. dollars(Note 1)
2014

￥

￥

＄

Millions of yen

LIABILITIES AND NET ASSETSLIABILITIESCurrent liabilities:
Short-term borrowings (Note 6) ………………………………….
Current portion of long-term debt (Note 6) ………………………
Notes and accounts payable ………………………………………
Accrued expenses(Note 2(12)) ………………………………………
Accrued income taxes …………………………………………….
Deferred tax liabilities…………………………………………….
Other current liabilities(Notes 2(10) and 6)…………………………
Total current liabilities …………………………………………

Long-term liabilities:
Long-term debt (Note 6) ………………………………………….
Accrued severance indemnities for employees(Notes 2(13) and 7)…
Liability for retirement benefits(Notes 2(13) and 7) …………………
Deferred tax liabilities (Note 10) ……………………………………
Other long-term liabilities ………………………………………..

1,069
1,116
1,337
334
100
49
978

1,601
1,373
2,583
395
103
60
945

15,556
13,34025,097
3,838
1,001
583
9,182

4,983

7,060

68,597

2,880
815

3,193

31,024
-

-

-

144
3

764
203
2

7,423
1,972
20

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

3,842

4,162

40,439Total liabilities …………………………………………………

8,825

11,222109,036

NET ASSETS
Shareholders' equity (Note 8)
Common stock
Authorized: 80,000,000 shares
Issued :25,021,832 shares at 31st March, 2014…………………
Additional paid-in capital …………………………………………
Retained earnings …………………………………………………
Less: Treasury stock at cost ………………………………………

8,933
462
6,890
(9)

8,933
462
7,208
(9)

86,796
4,489
70,034(87)

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

16,276

16,594

161,232

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

393
203

510
512
36

4,955
4,975
350

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

596

1,058

10,280Minority interests …………………………………………………

200

258

2,507

Total net assets …………………………………………………

17,072

17,910174,019

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

25,897

29,132

283,055

Contingent liabilities (Note 13)

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

－5－-Consolidated Statements of Income
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESTwo years ended March 31, 2014

Thousands of
U.S. dollars(Note 1 )2014

Millions of yen
2013

2014

￥

￥

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

16,454
12,696
3,758

17,165
12,623
4,542＄
166,780
122,649
44,131

Selling, general and administrative expenses (Notes 2(14) and 9)………

4,198

4,084

39,681

Operating Income……………………………………………………..

(440)

458

4,450

Other income (expenses)
Interest and dividend income……………………………………………
Interest expenses…………………………………………………………
Foreign exchange gains（losses) …………………………………………
Equity in earnings（losses) of affiliates……………………………………
Gain (Loss) on step acquisitions …………………………………………
Other, net…………………………………………………………………
Total other income (expenses) ………………………………………

65
(79)
1,032
22
89
71
1,200

56
(74)
164
12
(2)
49
205

544
(719)
1,593
117
(19)
476
1,992

Income before income taxes and minority interests …………………

760

663

6,442

Income taxes (Note 10)
Current ……………………………………………………………….
Deferred ……………………………………………………………..

91
(14)

107
(30)

1,039
(291)

Income before minority interests ………………………………………

683

586

5,694

Minority Interests …………………………………………………………

(8)

18

175

Net Income……………………………………………………………

691

568

5,519

22.72
22.72
10.00

U.S. dollars(Note 1 )
＄
0.22
0.22
0.10

Amount per share of common stock (Note 2 (17) ):Net Income……………………………………………………………
Diluted net income ……………………………………………………
Cash dividends ………………………………………………………

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

－6－

￥

￥
27.64
27.64
10.00

Consolidated Statements of Comprehensive Income
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESTwo years ended March 31, 2014

Thousands of
U.S. dollars(Note 1 )2014

Millions of yen
2013

2014

￥
Income Before Minority Interests …………………………………………
Other Comprehensive Income
Unrealized gain on other securities……………………………………
Translation adjustment…………………………………………………
Share of other comprehensive income of affiliates accounted for using
the equity method……………………………………………………
Total other comprehensive income
Comprehensive Income(Comprehensive income attributable to)Comprehensive income attributable to owners of the parent……………
Comprehensive income attributable to minority interests…………………

－7－

￥

＄

683

586

5,694

(105)
481

117
337

1,137
3,274

21
397
1,080

1
455
1,041

10
4,421
10,115

1,071
9

995
46

9,668
447

Consolidated Statements of Shareholders' Equity
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESTwo years ended March 31, 2014

Millions of yen
Shareholders' equity
Number of

Additional

shares ofCommonpaid-in

Retained

stock

capitalearnings

￥

￥

￥

8,933

462

Minority
interests

Unrealizedcommon stock

Balance at March 31, 2012 ……………………………25,021,832

Accumulated othercomprehensive income
Treasury gain on otherstock￥

Retirement
Translation

benefit

Minority

Total

securities adjustments

adjustmentsinterests

net assets

￥

￥

￥

￥

￥

6,324

(8)

497

(282)

-

-

15,926Net Income …………………………………………

-

-

-

691

-

-

-

-

-

691

Cash dividends………………………………………

-

-

-

(125)

-

-

-

-

-

(125)

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

-

-

-

-

(1)

-

-

-

-

(1)

Net changes of items other than shareholders' equity

-

-

-

6,890

(9)

(104)
393

485
203

-

200
200

581
17,072

8,933

Balance at March 31, 2013 ……………………………25,021,832

462

Net Income …………………………………………

-

-

-

568

-

-

-

-

-

568

Cash dividends………………………………………

-

-

-

(250)

-

-

-

-

-

(250)

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

-

-

-

-

0

-

-

-

-

0

Net changes of items other than shareholders' equity
Balance at March 31, 2014 ……………………………25,021,832

-

462

-

(9)

117
510

309
512

36
36

58
258

520
17,910

8,933

7,208

Thousands of U.S.dollars (Note 1 )Accumulated other
Shareholders' equity
Number of

Minority

comprehensive income

Additional

Unrealized

shares ofCommonpaid-in

Retainedcommon stock

stock

capitalearnings

Treasury gain on other

＄

＄

＄

Balance at March 31, 2013 ……………………………25,021,832

86,796

4,489

66,945

(87)

stock
＄

interests

Retirement
Translation

benefit

Minority

Total

securities adjustments

adjustmentsinterests

net assets

＄

＄

＄

1,943

165,876

＄

＄

3,818

1,972

-

Net Income …………………………………………

-

-

-

5,519

-

-

-

-

-

5,519

Cash dividends………………………………………

-

-

-

(2,430)

-

-

-

-

-

(2,430)Net increase of treasury stock ………………………

-

-

-

-

0

Net changes of items other than shareholders' equity
Balance at March 31, 2014 ……………………………25,021,832

-

-

-

(87)

86,796

4,489

70,034

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

－8－

1,137
4,955

3,003
4,975

-

-

0

350
350

564
2,507

5,054
174,019

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

Cash Flows from Operating Activities:
Net Income before income taxes and minority interests ………………………………….
Adjustments for:
Depreciation …………………………………………………………………………..
Equity in earnings of affiliates ………………………………………………………..
Amortization of goodwill ……………………………………………………………
Interest and dividends income ………………………………………………………..
Interest expenses ……………………………………………………………………..
Foreign exchange losses (gains) …………………………………………………………
(Gain) Loss on step acquisitions…………………………………………………………
(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 …………………………………………………………………………
Net cash provided by (used in) operating activities ……………………………………..

2013
￥

2014
￥
760

663

2014
＄
6,442

1,355
(22)
37
(65)
79
92
(89)
2,147
321
15
(1,558)
(38)
(109)
2,925
66
(91)
(190)
2,710

1,315
(12)
42
(56)
74
46
2
(2,367)
188
(15)
1,082
103
(20)
1,045
58
(77)
(91)
935

12,777
(117)
408
(544)
719
447
19
(22,998)
1,827
(146)
10,5131,001(195)
10,153
563
(748)
(884)
9,084

Cash Flows from Investing Activities:
Purchase of investment securities …………………………………………………………
Proceeds from purchase of investments in subsidiaries
resulting in change in scope of consolidation ……………………………
Purchase of property, plant and equipment ……………………………………………….
Sale of property, plant and equipment …………………………………………………….
Other, net …………………………………………………………………………………
Net cash provided by (used in) investing activities ………………………………………

(7)

(7)

(68)

56
(1,202)70(0)(1,083)12(1,592)49(15)(1,553)

117(15,468)476(146)(15,089)

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

(450)
2,542
(2,924)
200
(60)
(0)
(125)
(1)
(818)

511
1,850
(1,190)
(100)
(0)
(250)
(1)
820

4,965
17,975(11,562)(972)(0)(2,430)(9)7,967

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 …………………………………………

62
871
4,396

65
267
5,267

632
2,594
51,176

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

5,267

5,534

53,770

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

－9－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 requirementsof International Financial Reporting Standards (“IFRS”).
The Company’s overseas subsidiaries maintain their accounts and records in conformity withgenerally accepted accounting principles and practices prevailing in their respective countries of domicile,and the Company makes necessary adjustments to its consolidated accounting process in case there areconsiderable 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 form which is more familiar 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, 2014, which was ¥102.92 to US$1.00.
These convenience translations should not be construed as representations that the Japanese yen amounts
have been, could have been, or could in the future be, converted into U.S. dollars at this or any other rateof exchange.

2. Summary of Significant Accounting Policies(1) Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and its
subsidiaries and affiliates. 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 that of the Company, March 31, and the Company consolidate such subsidiaries using theirprovisional settlements as of March 31. Shown below are the significant subsidiaries and affiliates of theCompany.

－ 10 －

Subsidiaries(All subsidiaries have been consolidated)
Name
BANDICK Corporation
TOWATEC Co., Ltd.
TOWAM Sdn. Bhd.
TOWA (Suzhou) Co., Ltd.
TONGJIN Corporation ※１
TOWA Asia-Pacific Pte. Ltd.
TOWA (Shanghai) Co., Ltd.
TOWA TAIWAN Co., Ltd.
TOWA Jipal Technologies Co., Ltd. ※２
TOWA Semiconductor Equipment
Philippines Corp.
TOWA KOREA CO., LTD ※３
TOWA USA Corporation
TOWA Europe B.V. ※４
TOWA America Corporation
TOWA Europe GmbH ※５

Ownership
100 %
100
100
100
50
100
100
100
60
100

Country of Incorporation
Japan
Japan
Malaysia
China
Korea
Singapore
China
TaiwanTaiwanPhilippines

100
100
100
100
100

Korea
The United States of America
Kingdom of the Netherlands
The United States of America
Germany

Affiliates(All affiliates are accounted for by the equity method)Name
Ownership
Country of Incorporation
Scientific and Semiconductor
20 %
Japan
Manufacturing Equipment RecyclingCo., Ltd※１．The Company acquired 50% portion of TONGJIN Corporation on April 5, 2012, and its financial
statement is consolidated into accompanying financial statement for 2013 and 2014.
※２．The Company acquired 60% portion of TOWA Jipal Technologies Co., Ltd. on April 8, 2013, andits financial statement is consolidated into accompanying financial statement for 2014.
※３．TOWA KOREA CO., LTD was established on April 8, 2013.
※４．TOWA Europe B.V. was established on October 2, 2013.
※５．TOWA Europe GmbH is in process of liquidation.
(2) Translation of Foreign Currency Items
In accordance with the Japanese accounting standard, every monetary assets and liabilities
denominated in foreign currencies are principally translated into Japanese yen at the exchange rate ineffect at the balance sheet date. The foreign exchange gains and losses from translation are recognized in
the statements of income.
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 exchange ratein effect at the balance sheet date. The differences resulting from translation in this manner are included
in “Translation adjustments” which is listed in Accumulated Other Comprehensive Income in theaccompanying 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.

－ 11 －

Components of cash and cash equivalents as of March 31, 2013 and 2014 are as follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2013
2014
2014
Cash on hand and at banks
Less: Time deposits with deposit termof over three months
Cash and cash equivalentat end of year

¥ 5,608¥5,922$57,540

¥ 341

¥388

$3,770¥ 5,267¥5,534$53,770(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,acquired with 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.

－ 12 －

(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-average method for raw materials and by the last purchase cost method for supplies.
(6) Allowance for Doubtful Accounts
The Company and its domestic subsidiaries have provided the allowance based on the past
uncollectible receivable experience for a certain reference period. Furthermore, for receivables which arefrom the debtors with financial difficulty, the allowance is provided for estimated unrecoverable amounts
individually. Overseas subsidiaries have provided an allowance for doubtful accounts in the estimatedamounts of possible bad debts.
(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 applying declining-balance method, except for buildings acquired on and after April 1, 1998
which are applied the straight-line method, over the estimated useful lives.
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.
However, finance lease transactions other than those in which titles to leased property are determined
to be transferred to lessees, which transactions started on or before March 31, 2008, are stated by applying
the accounting treatment applicable to ordinary operating lease transactions.
(9) Derivatives
The Company has entered into interest rate agreements to hedge the fluctuation of interest rate
exposures, and not for speculative purposes. The instruments include interest rate swap agreements.
These instruments were accounted by the deferral hedge accounting. The Company has accounted forinterest rate swap agreements by the exception accounting.
(10) Goodwill
Goodwill is amortized over a period of 3 years by the straight-line method.

－ 13 －

(11) Product Warranties
The Company has accounted for the estimate amounts of maintenance expenses as the productwarranties, 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, 2014, the liability for expected warranty costs was ¥69 million ($670thousand).
(12) 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.
(13) Retirement Benefits
Asset for retirement benefits and liability for retirement benefits have been recorded mainly at theamount calculated based on the retirement benefit obligations and the fair value of the pension plan assets
as of balance sheet date. The retirement benefit obligation is attributed to each period by the straight-line
method over the estimated years of service of the eligible employees.
Actuarial gain or loss is amortized in the year following the year in which the gain or loss isrecognized by the declining-balance method over a period of 10 years, which is within the estimatedaverage remaining years of service of the eligible employees.
(14) Research and Development Costs
Research and development expenditure is charged to income when incurred.
(15) 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
and liabilities and those as reported in the financial statements.
(16) Appropriation of Retained Earnings
Under the Japanese Corporate Law and the Articles of Incorporation of the Company, theappropriation of 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 toshareholders on the shareholders' register as at the end of each financial year.
(17) Per Share Information
Net income per share and diluted net income per share are computed based on the weighted-average－ 14 －

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.

Change in Accounting Policies
The Company adopted “Accounting Standard for Retirement Benefits” (ASBJ Statement No.26 of
May 17, 2012) and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No.25
of May 17, 2012) (except for certain provisions described in the main clause of Section 35 of the ASBJ
standard and in the main clause of Section 67 of the ASBJ guidance) as of March 31, 2014. These
accounting standards require the Company to apply a revised method for recording the retirement benefit
obligations, after deducting pension plan assets, as a liability for retirement benefits. In addition,
unrecognized actuarial differences is recorded as a liability for retirement benefits.
Concerning the application of the Accounting Standard for Retirement Benefits, based on theprovisional treatment set out in Clause 37 of the ASBJ standard, the effects of such changes in the current
fiscal year have been recorded in retirement benefit liability adjustments through accumulated othercomprehensive income.
As a result of this change, liability for retirement benefits was recognized in the amount of ¥764
million ($7,423thousand) and accumulated other comprehensive income increased by ¥36 million($350thousand) as of March 31, 2014. For additional information, net assets per share increased ¥1.43($0.01) as of March 31, 2014.

4.

Securities(1) The following is a summary of investments in affiliates and other securities at March 31, 2013:
Millions of yen
2013
Book Value
Unrealized
Unrealized(Estimated
Cost
gains
lossesfair value)
Market value available:
Equity securities
¥ 933
¥ 537
¥ 21
¥ 1,449
¥ 933
¥ 537
¥ 21
¥ 1,449
Market value not available:
Equity securities
3
3
Other securities total
¥ 936
¥ 537
¥ 21
¥ 1,452
Investments in affiliates:
Millions of yen
2013
Book Value
Market value not available:
Equity securities

¥ 194
¥ 194
¥ 1,646

Total－ 15 －

(2) The following is a summary of investments in affiliates and other securities at March 31, 2014
Millions of yen
2014Book Value
Unrealized
Unrealized(Estimated
Cost
gains
lossesfair value)
Market value available:
Equity securities
¥ 940
¥ 701
¥ 13
¥ 1,628
¥ 940
¥ 701
¥ 13
¥ 1,628
Market value not available:
Equity securities
3
3
Other securities total
¥ 943
¥ 701
¥ 13
¥ 1,631
Investments in affiliates:
Millions of yen
2014Book Value
Market value not available:
Equity securities

¥ 198
¥ 198
¥ 1,829

Total
Thousands of U.S. dollars (Note 1)
2014
Unrealized
gains

Unrealized
lossesBook Value(Estimatedfair value)$ 9,133$ 9,133$ 6,811$ 6,811

$ 126
$ 126

$ 15,818$ 15,81829$ 9,162$ 6,811$ 126

29$ 15,847

Cost
Market value available:
Equity securities
Market value not available:
Equity securities
Other securities total
Investments in affiliates:

Thousands of
U.S. dollars(Note 1)
2014
Book Value
Market value not available:
Equity securities$ 1,924$ 1,924$ 17,771

Total－ 16 －

5.

Estimated Fair Value of Financial Instruments
As of March 31, 2013 and 2014, 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
Bonds
Long-term borrowings
Total liabilities

Book Value¥ 5,608
3,811(2)¥ 3,809
1,449¥ 10,866

Investment securities
Total assets
Notes and accounts payable
Short-term borrowings
Bonds
Long-term borrowings
Total liabilities

Difference¥ -¥ 3,809
1,449¥ 10,866

¥ ¥ -

1,337
1,069
440
3,556
¥ 6,402

1,337
1,069
444
3,555
¥ 6,405

4
(1)
¥ 3

¥ -

¥ (25)¥ (25)

Derivative financial instruments

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

Millions of yen
2013
Fair Value¥ 5,608

Book Value¥ 5,9226,255(1)¥ 6,254
1,628¥ 13,804

Millions of yen
2014
Fair Value¥ 5,922

Difference¥ -¥ 6,254
1,628¥ 13,804

¥ ¥ -

2,583
1,601
340
4,226
¥ 8,750

2,583
1,601
342
4,226
¥ 8,752

2
0
¥ 2

¥ -

¥ (27)¥ (27)

Derivative financial instruments－ 17 －

Thousands of U.S. dollars (Note 1)
2014
Book Value
Fair Value
Difference$ 57,540$ 57,540$ 60,776(10)$ 60,766$ 60,766$ 15,818
15,818$ 134,124$ 134,124$ -Cash and deposits
Notes and accounts receivable
Less:Allowance for Doubtful Accounts
Investment securities
Total assets
Notes and accounts payable
Short-term borrowings
Bonds
Long-term borrowings
Total liabilities

25,097
15,556
3,304
41,061$ 85,018

25,097
15,556
3,323
41,061$ 85,037

19
0
$ 19

$ -

$ (262)$ (262)Derivative financial instruments

Financial instruments for which it is extremely difficult to determine the fair value as of March 31, 2013
and 2014 were as follows, respectively.
Thousands of
U.S. dollars(Note 1)Millions of yen
2013
Unlisted equity securities

2014
¥197

¥201

$1,953

Because no quoted market prices are available and it is extremely difficult to determine the fair value, theabove 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.
6.

Short-term Borrowings and Long-term Debt
Short-term borrowings represent loans from banks. The annual average interest rates applicable toshort-term borrowings at March 31, 2013 are 1.4% and 2014 are 1.2%, respectively.
Long-term debt as of March 31, 2013 and 2014 consisted of the following:

Millions of Ｙen
2013
2014
¥ 3,556¥ 4,226
240
180
200
160
3
3
(1,116)(1,374)¥ 2,883¥ 3,195

Borrowings from financial institutions
0.6% Yen Bonds due 2016
0.5% Yen Bonds due 2017
Other Long term liabilities
Less: Portion due within one year

－ 18 －

Thousands of
U.S. dollars(Note 1)
2014
$ 41,061
1,749
1,555
29
(13,350)$ 31,044

The aggregate annual maturity of long-term debt after March 31, 2014 is summarized as follows:
Thousands of
U.S. dollars
Millions of Ｙen(Note 1)Years ending March 31,
2015¥ 1,374$ 13,350
2016
1,326
12,8842017
1,086
10,5522018 and thereafter
783
7,608
¥ 4,569$ 44,394
At March 31, 2013 and 2014, the following assets were pledged as collateral for short-termborrowings and long-term debt:

Millions of Yen
2013
2014
Principal of debt:
Short-term borrowings
Portion due within one year
Long-term borrowings

Assets pledged as collateral:
Buildings and structures
Machinery and equipment
Land

Thousands of
U.S. dollars(Note 1)
2014

¥ 68
8
64
¥ 140

¥ 43
58
16
¥ 117

$ 418
564
155
$ 1,137

¥ 125
132
102
¥ 359

¥ 154
1
106
¥ 261

$ 1,49610
1,030$ 2,536

Regarding loan payables, the syndicate loan contract with limit of ¥975 million ($9,473 thousand),commitment line contracts with limits of ¥2,500 million ($24,291 thousand), convertible term loan
contract with limit of ¥150 million ($1,457 thousand), and convertible term loan contract with limit of¥175 million ($1,700 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 thefollowing 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 andeach semiannual period must be maintained ¥10,710 million ($104,061 thousand) or more.
(2) The ordinary losses before depreciation in both consolidated statements of income for each fiscal
year must not be existed in two successive periods after the fiscal year ended March 31, 2013.
(Financial covenant terms included in the commitment line contracts)(1) The amount of Net Assets on the consolidated balance sheets at the end of each fiscal year andeach semiannual period must be maintained ¥11,150 million ($108,337 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 after the fiscal year ended March 31, 2013.

－ 19 －

(Financial covenant terms included in the convertible term loan contract with limit of ¥150 million yen)
(1) The amount of Net Assets on the consolidated balance sheets at the end of each fiscal year andeach semiannual period must be maintained ¥9,040 million ($87,835 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 after the fiscal year ended March 31, 2010.
(Financial covenant terms included in the convertible term loan contract with limit of ¥175 million yen)
(1) The amount of Net Assets on the consolidated balance sheets at the end of each fiscal year andeach semiannual period must be maintained ¥10,710 million ($104,061 thousand) or more.
(2) The ordinary losses before depreciation in both consolidated statements of income for each fiscal
year must not be existed after the fiscal year ended March 31, 2013.
7.

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 payments or pensions mainly based on the salary amount andservice periods. 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.
Year ended March 31, 2013
The following table sets forth the changes in benefit obligation, plan assets and funded status of theCompany and its subsidiaries at March 31, 2013.

Projected benefit obligation at end of year
Fair value of plan assets at end of year
Funded status:
Benefit obligation in excess of plan assets
Unrecognized actuarial loss
Accrued pension liability recognized in the Consolidation balance sheets

Millions of Yen
2013¥ 1,918
1,037
881
66
¥ 815

Certain consolidated subsidiaries calculate benefit obligation by simplified methods. .
Severance and pension costs of the Company and its subsidiaries included the following components
for the year ended March 31, 2013.
Millions of Yen
2013
¥ 127
20
30
¥ 177

Service cost
Interest cost
Expected return on plan assets
Actuarial losses
Net periodic benefit cost

－ 20 －

The benefit cost of certain consolidated subsidiaries calculated by simplified method have been
included in service cost in the above table.
The Assumption used in the accounting for the defined benefit plans for the year ended March 31,
2013 were as follows:
Method of attributing benefit to periods of service
Discount rateLong-term rate of return on fund assets
Amortization unrecognized projected Benefit obligation at the date oftransition

2013
Straight –line basis
0.89%
0.00%
10years(declining-balance basis)

Amortization period for actuarial losses

Year ended March 31, 2014
(1) Defined benefit plans
1) The changes in defined benefit obligation for the year ended March 31, 2014 were as follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)2014
2014
Retirement benefit obligations at beginning of year
¥ 1,918$ 18,636
Service cost
126
1,224
Interest cost
24
233
Actuarial (gain) loss
(30)
(291)
Retirement benefits paid
(84)
(816)
Others6
58
Retirement benefit obligations at end of year
¥ 1,960$ 19,044
2) The changes in plan assets for the year ended March 31, 2014 were as follows:

Millions of Yen
2014¥ 1,037
51
47
132
(71)
¥ 1,196

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

－ 21 －

Thousands of
U.S. dollars(Note 1)
2014
$ 10,075
496
457
1,283
(690)
$ 11,621

3) The balance of retirement benefit obligations and plan assets at fair value as of March 31, 2014,
liabilities and assets recognized in the consolidated balance sheet were as follows:

Unfunded retirement benefit obligations
Net liability recognized in the consolidated balance sheet

Millions of Yen
2014¥ 1,716(1,196)
520
244
¥ 764

Thousands of
U.S. dollars(Note 1)
2014
$ 16,673(11,621)
5,052
2,371
$ 7,423

Liability for retirement benefits
Net liability recognized in the consolidated balance sheet

764
¥ 764

7,423
$ 7,423

Funded retirement benefit obligations
Plan assets at fair value

4) The components of retirement benefit expenses for the year ended March 31, 2014 were as follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2014
2014
Service cost
¥ 126
$ 1,224
Interest cost
23
223
Expected return on plan assets
(51)
(496)
Amortization of actuarial (gain) loss
17
165
Retirement benefit expenses¥ 115$ 1,1165) Unrecognized actuarial gain included in accumulated other comprehensive income (before tax effect) asof March 31, 2014 are as follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2014
2014
Unrecognized actuarial gain (loss)
¥ 27
$ 262
Total
¥ 27
$ 262
6) Plan assets, by major category, as a percentage of total plan assets as of March 31, 2014 are as follows:2014
Debt securities
37%
Equity securities
40%
General accounts at life insurance companies
19%
Others
4%
Total
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.

－ 22 －

7) The assumptions used in accounting for the above plans as follows:
2014
Discount rate
0.67%
Expected long-term rates of return on plan assets
4.89%(2) Defined Contribution plans
Certain consolidated subsidiaries have defined contribution plans and amount of the contribution forthe year ended March 31, 2014 was ¥26million ($253thousand).
8.

Shareholders’ Equity
Under the Japanese Corporate Law the appropriation of retained earnings or disposition of
accumulated deficit could be adopted by the Board of Directors.
The Japanese Corporate Law requires that an amount equal to 10% or more of cash dividends andother appropriations of retained earnings paid out with respect to each financial period be set aside in thelegal reserve until an aggregate amount of additional paid-in capital and the legal reserve equals 25% of
the amount of stated capital. The amount of total additional paid-in capital and legal reserve which
exceeding 25% of stated capital can be transferred to retained earnings by a resolution of the shareholders,which may be available for dividends.
Under the Japanese Corporate Law, 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.

9.

Research and Development Costs
Research and development costs charged to income for the years ended March 31, 2013 and 2014
were ¥188million and ¥130million ($1,263 thousand), respectively.

10. 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 37.9% for the year ended of March 31, 2013 and 2014.
The deferred tax assets and deferred tax liabilities at March 31, 2013 and 2014 are as follows:
Thousands of
U.S. dollars
Millions of Ｙen(Note 1)
2013
2014
2014
Deferred tax assets:
Inventory write down
¥ 216
¥ 179
$ 1,739
Impairment loss of fixed assets
500
451
4,382
Retirement and severance benefits
280
278
2,701
Trial product for development
185
290
2,818
Net operating loss carried forward
816
644
6,258
Other, net
632
605
5,878
Valuation Allowance(2,501)(2,254)(21,900)
128
193
1,876
Deferred tax liabilities:
Other, net
(202)
(280)
(2,721)(202)(280)(2,721)
Net deferred tax assets/(liabilities)¥ (74)¥ (87)$ (845)－ 23 －

11. Other Comprehensive Income(Loss)
The reclassification adjustments and tax effects for components of other comprehensive income (loss)
for the year ended March 31, 2013 and 2014 are as follows:
Thousands of
U.S. dollars
Millions of Ｙen(Note 1)
2013
2014
2014
Unrealized gain on other securities:
Amount arising during the year
¥ (159)¥ 172$ 1,671
Before Tax effect
(159)
172
1,671
Tax effect
54
(55)
(534)
Total unrealized gain on other securities
Translation adjustments:
Amount arising during the year
Share of other comprehensive income ofaffiliates accounted for using the equity
method:Amount arising during the year
Reclassification adjustments for losses(income) realized in net income
Total share of other comprehensive
income of affiliates accounted for using
the equity method
Total other comprehensive income (loss)

(105)

117

1,137

481

337

3,274

21

1

10

-

-

-

21
¥ 397

1
¥ 455

10
$ 4,421

12. Leases
The Company and its consolidated subsidiaries and equity method affiliates have been utilizing
finance lease arrangements other than those deemed to transfer the ownership of the leased property to thelessee to employ certain machinery and equipment.
The finance lease transactions, which do not transfer ownership to lessee, started before April 1, 2008
were accounted for as operating leases.
Total lease payments for such lease arrangements for the year ended March 31, 2013 and 2014 are¥0million and no payment, respectively.
Summarized below are the pro forma information on acquisition costs, accumulated depreciation andfuture minimum lease payments for the property held under such lease as mentioned above:
As of March 31, 2013
Millions of yen

Acquisition costs
Accumulated Depreciation
Net leased property

MachineryAnd
Equipment
¥ 7
7
¥ -

Other
¥ ¥ -

－ 24 －

Total
¥ 7
7
¥ -

As of March 31, 2014
Millions of yen

Acquisition costs
Accumulated Depreciation
Net leased property

MachineryAnd
Equipment
¥ ¥ -

Other
¥ ¥ -

Total
¥ ¥ -

Thousands of U.S. dollars (Note 1)

Acquisition costs
Accumulated
Net leased property

MachineryAnd
Equipment
$ $ -

Other
$ $ -

Total
$ $ -

The lease payment for such lease arrangement had been fully paid out, no balance for future minimum
lease payments as of March 31, 2013 and 2014.
Depreciation is calculated by the straight-line method on the assumption that the term of the lease isuseful life of the relevant leased asset and residual value is zero.
Depreciation expense, which is not reflected in the accompanying consolidated statements of income,would have been ¥0 million and not applicable for the year ended March 31, 2013and 2014, respectively.
13. Contingent Liabilities
The Companies have no significant contingent liabilities.
14. Business Combinations
Business combination through acquisition for the year ended March 31, 2014.
(1) Overview of the business combination(i) Acquired company name and its main business
Acquired company name: TOWA Jipal Technologies Co., Ltd
Main business: After-sale service of semiconductor manufacturing equipment(ii) Purpose of the acquisition
To develop the business activity in Taiwan, where our biggest market for Semiconductor
equipment business(iii) Date of completion business combination
April 8, 2013(iv) Legal form of business combination
Share Purchase by underwriting capital increase by third-party allotment(v) Name of the company after business combination
TOWA Jipal Technologies Co., Ltd(vi) Acquired voting rights
Immediately before the date of business combination: 40%
Additions at the date of business combination: 20%
After acquisition: 60%－ 25 －

(vii) Main reason to decide the acquiring company
The Company acquires 60% portion of the acquired company and have effective control overits important business policy.
(2) Period for which the operating results of the acquired company are included in the
Company’s consolidated financial statements
April 1, 2013 to March 31, 2014
(3) The breakdown of acquisition cost for the acquired company
Millions ofyen

Thousands of
U.S. dollars(Note 1)

¥ 7
8
¥ 15

$ 68
78
$ 146

Market value of stocks of TOWA jipal Technologies Co., Ltd at the date ofbusiness combination, held by the Company immediately before the
combination
Cash paid for additional acquisition
Total acquisition costs(4) Difference of total cost of acquisition and individual acquisition costs
Thousands ofMillions of
U.S. dollars
yen(Note 1)
Loss on step acquisitions¥ 2$ 19(5) Details of gain on negative goodwill

Thousands ofMillions of
U.S. dollars
yen(Note 1)
Amount of Gain on Negative Goodwill¥ 1$ 10
Gain on Negative Goodwill is recognized for the difference of acquisition cost and the market valueof net assets of the acquired company at the date of business combination.
(6) Assets acquired and liabilities assumed as of the acquisition dateThousands ofMillions of
U.S. dollars
yen(Note 1)
Current assets
¥ 46
$ 447
Non-current assets
1
10
Total assets
¥ 47
$ 457
Current liabilities
Non-current liabilities
Total liabilities

¥ 28
¥ 28

－ 26 －

$ 272
$ 272

15. Segment Information(1) Segment by products
Millions of Ｙen

Year ended March 31, 2013

Semiconductor Fine plastic
equipment
mold
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
Investments in associates accounted
for using equity method
Capital expenditure¥1,278
1,278¥-¥ 16,454
16,454

15,777¥ (601)

1,117
¥ 161

¥-

16,894¥ (440)¥ 24,599¥ 1,264¥ 37¥ 1,298¥ 91¥ -¥ ¥ ¥ -

¥ 25,897¥ 1,355¥ 37¥ 194¥ 1,232¥ ¥ 30

¥ ¥ -

¥ 194
¥ 1,262

Elimination/
Unallocated
AssetsConsolidated

Millions of Ｙen
Semiconductor Fine plastic
equipment
mold

Cost of sales andOperating expenses
Operating income
Ⅱ.Assets
Total assets
Depreciation and amortization
Amortization of goodwill
Investments in associates accounted
for using equity method
Capital expenditure

Consolidated¥ 15,176
15,176

Year ended March 31, 2014

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

Elimination/
Unallocated
Assets¥ 15,741
15,741¥1,424
1,424¥-¥ 17,165
17,165

15,511
¥ 230

1,196
¥ 228

¥-

16,707¥ 458¥ 27,784¥ 1,240¥ 42¥ 1,348¥ 75¥ -¥ ¥ ¥ -

¥ 29,132¥ 1,315¥ 42¥ 198¥ 1,318¥ ¥ 165

¥ ¥ -

¥ 198
¥ 1,483－ 27 －

Year ended March 31, 2014

Ⅰ.Sales and operating income
Net sales to customers
Inter-segment sales
Cost of sales andOperating expenses
Operating income
Ⅱ.Assets
Total assets
Depreciation and amortization
Amortization of goodwill
Investments in associates accounted
for using equity method
Capital expenditure

Thousands of U.S. dollars (Note 1)
Elimination/
Semiconductor Fine plastic
Unallocatedequipment
mold
AssetsConsolidated$ 152,944
152,944$ 13,836
13,836$ -$ 166,780
166,780

150,709$ 2,235

11,621$ 2,215$ -162,330$ 4,450$ 269,957$ 12,048$ 408$ 13,098$ 729$ -$ $ $ -

$ 283,055$12,777$ 408$ 1,924$ 12,806$ $ 1,603$ $ -$ 1,924$ 14,409(2) Sales by region

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

Millions of Ｙen
2013
2014
¥ 2,521¥ 3,150
13,536270
127
13,933¥ 16,454－ 28 －

13,448429
138
14,015¥ 17,165

Thousands of
U.S. dollars(Note 1)
2014
$ 30,606
130,665
4,168
1,341
136,174$ 166,780

Corporate Information
as of June 27, 2014
Corporate Data
Corporate Name:
Headquarters/Factory:

Board of Directors

TOWA CORPORATION
5 Kamichoshi-cho, Kamitoba,

President & COO
Hirokazu Okada

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

April 17, 1979

Operations:

Develop, design, manufacture, and sell
precision molds, manufacturing systems forelectronic components, inspection systems forelectronic components, precision-molded andassembly products, medical-use equipment, andelectronic-communications equipment.
Other related business.

Paid-in Capital:

Directors¥8,932,627,777

Tsuyoshi Amakawa
Hisaji Konishi
Makoto Fukutomi
Hiroshi Uragami
Yoshizumi Tamura
Hajime Kuwaki

Standing Corporate Auditor

Common Stock

Hisayoshi Kobayashi

Authorized:

80,000,000

Issued Number of Shares:

25,021,832

Unit for Trading:
Stock Listings:
Transfer Agents:

Fiscal Year:
Number of Employees:
URL:
Subsidiaries andAffiliated Companies:

Corporate Auditors

100

Masanori Sugiyama

First Section of the Tokyo Stock Exchange

Daisuke Wake

Mizuho Trust & Banking Co., Ltd

From April 1 to March 31447
http://www.towajapan.co.jp
BANDICK Corporation
TOWATEC Co., Ltd.
TOWAM Sdn. Bhd.
TOWA Asia-Pacific Pte. Ltd.
TOWA Semiconductor Equipment Philippines Corp.
TOWA USA Corporation
TOWA Europe B.V.
TOWA (Shanghai) Co., Ltd.
TOWA (Suzhou) Co., Ltd.
TOWA TAIWAN Co., Ltd.
TOWA KOREA Co., Ltd..
TONGJIN Corporation
TOWA-Jipal Technologies Co., Ltd.
Scientific and Semiconductor Manufacturing Equipment Recycling Co., Ltd.

－ 29 －

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