ANNUALREPORT2

1

0

7

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 forsemiconductors sealed devices, singulation systems and precision molds for manufacturing
semiconductors, as well as the manufacture and sales of fine plastic molded products. We maintain aleading share of the global market for our mainstay semiconductor resin encapsulation systems, whichenjoy an excellent reputation with users.

Economic Overview
The Japan’s economy has shown a bright outlook in this consolidated fiscal year as seen amongcorporations, mainly, export companies that achieved an increase in earnings owing to the improvementsin employment and income environments and a gradual recovery trend in the global economy.
Meanwhile, outlook of the world economy remains unclear due to the increase in uncertainty, especiallywith the economic slowdown in Asian emerging economies including, primarily, China, the policy trendof the new U.S. government, UK’s decision to withdraw from EU and other factors.

Performance
In the semiconductor industry, amid the situation where aggressive investments in advanced
packaging fields have progressed, there has been a movement where a market is dominated by a small
number of large companies, and this “survival of the fittest” situation has become obvious. In addition,
the industry reorganization movements have surfaced, as seen in the mergers and alliances among
companies from different industries for the purpose to utilize IoT (Internet of Things) or semiconductor
technology, which is the core of automatic driving technology. Demand for semiconductors for various
applications has increased, especially for the semiconductors for the application of servers in data
centers due to the sophistication of the functions of China-made smartphones and an increase incommunication data volume. Further, demand for semiconductors for IoT, automobile and otherapplications also has increased steadily and continuously.

－1－Under these circumstances, the Group has thrived to expand capital investment under the China’s
national strategy to develop semiconductor industry in a collected effort by our sales and production
bases in China and has steadily linked such effort to orders and sales by incorporating the needs of themarket into our products. In addition, for packages advancing reduction in size and thickness andincrease in layers, we have thrived to penetrate the market by understanding the customers’ needs andtaking advantage of the superiority of our compression equipment that use our unique technology.
As a result of our efforts as mentioned above, our performances in the last consolidated fiscal year arerecorded as follows: orders received 27.975 billion yen (increased by 21.6%, which is 4.978 billion yen
against that of the previous consolidated fiscal year), net sales 27.632 billion yen (increased by 24.1%,
which is 5.361 billion yen against that of the previous consolidated fiscal year), operating income 3.831
billion yen (increased by 96.1%, which is 1.877 billion yen against that of the previous consolidated
fiscal year), ordinary income 4.131 billion yen (increased by 97.4%, which is 2.038 billion yen againstthat of the previous consolidate fiscal year), and net income attributable to owners ofparent 3.867

billion yen (increased 2.1 times that of the previous consolidated fiscal year, which is 2.041 billion yen).
As shown above, we achieved the record-high results in ordinary income and net income attributable toowners of parent.

Looking Ahead
Raising “Pursuing true value as a manufacture” as the theme, we announced the long-term
management vision "TOWA 10 Year Vision" in 2014 aiming to achieve sales of 50 billion yen andbusiness profit ratio of 16% 10 years later through the efforts of "expansion of existing businesses andmarket share" and "creation of New Market by way of developing applied core technology".
Our performance in the last consolidated fiscal year, which was the final year of our First Mid-Term
Management Plan, significantly exceeded the plan. Our great achievement can be served as a solid
foundation for the Second Mid-Term Management Plan.
Regarding the next 3 years in the Second Mid-Term Management Plan, which has begun this fiscal
year, as the most important period for achieving "TOWA 10 Year Vision", we set measures to be taken togain greater superiority in the semiconductor market, the growth of which is expected in various
applications such as IoT, automatic driving technology, AI (Artificial intelligence) and others and also tomaintain a high market share. We also set important activities to create a new market by developing
applied core technology taking advantage of our creative capabilities, while raising slogans "Challenge"and "Leap”.

－2－<Mid-term business plan Ⅱ>(1) Theme「Challenge and Leap with Empowerment」
Empowerment in TOWA means, Urge employees to act independently and autonomously, thenmaximize the performance of the organization.
(2) Business Plans① Acquire superior position in cutting-edge packaging market. Dig up potential needs in existing
packaging market.
② Create new markets in fine plastic business and expand results.
③ Invest more resources into total solution service (TSS) business and new businesses to expand
business chances.
④ Reinforce corporate governance and enhance corporate value more.
(3) Performance plan
(millions of yen)
FY2017FY2018FY2019Net sales
Semiconductor manufacturing
equipment businessNet sales
Fine plastic molding business(breakdown)

29,50032,50035,50024,20026,00027,700

1,300

1,500

1,600

New business

4,000

5,000

6,200

Operating income

3,800

4,200

4,600

Ordinary income

3,800

4,200

4,600

Net income attributable to owners of parent

2,600

2,900

3,200

The above-mentioned matters concerning the future were determined by our Group at the end of thelast consolidated fiscal year.

We look forward to your continuing support and assistance in the future.
We would like to express our heartfelt appreciation for your support.
August 2017
Hirokazu Okada
President & CEO－3－

Consolidated Balance Sheets
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESMarch 31, 2016 and 2017

2016

2017

Thousands of
U.S. dollars(Note 1)
2017

￥

￥

＄

Millions of yen

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

6,257

5,853

52,170Inventories ……………………………………………………
Deferred tax assets (Note 10) …………………………………
Other current assets …………………………………………..

5,195
(5)
5,190
4,859
52
492

8,126
(7)
8,119
5,739
446
610

72,431(62)
72,36951,154
3,975
5,438

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

16,85020,767

185,106

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

4,476
13,663
13,032
148(19,821)

4,489
14,265
12,789148(20,249)

40,012
127,150
113,994
1,319(180,488)

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

11,498

11,442

101,987

2,292
103
921

2,759
68
105
896

24,592
606
936
7,987

Total other assets ………………………………………….

3,316

3,828

34,121

Total assets ………………………………………………………

31,66436,037321,214

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

Property, plant and equipment, at cost :Other assets:
Investment securities (Note 4) ………………………………..
Deferred income taxes (Note 10) ……………………………..
Asset for retirement benefits(Notes 2(13) and 7) …………….
Other ………………………………………………………….

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

－4－-Consolidated Balance Sheets
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESMarch 31, 2016 and 2017

2016

2017

Thousands of
U.S. dollars(Note 1)
2017

￥

￥

＄

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(Note 10)……………………………………
Other current liabilities(Notes 2(11) and 6)………………………

270
1,487
2,848
417
263
67
1,664

1,000
1,275
3,474
510
570

8,913
11,36530,965
4,546
5,081

1,746

15,562

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

7,016

8,575

76,432Long-term liabilities:
Long-term debt (Note 6) ………………………………………….
Liability for retirement benefits(Notes 2(13) and 7) ………………
Deferred tax liabilities (Note 10) …………………………………
Other long-term liabilities ………………………………………..

2,901
377
359
4

1,626
247
486
3

14,493
2,202
4,332
27

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

3,641

2,362

21,054

Total liabilities …………………………………………………

10,657

10,937

97,486NET ASSETS
Shareholders' equity (Note 8)
Common stock
Authorized: 80,000,000 shares
Issued :25,021,832 shares at 31st March, 2017…………………
Additional paid-in capital …………………………………………
Retained earnings …………………………………………………
Less: Treasury stock at cost ………………………………………

8,933
462
10,050
(9)

8,933
462
13,667(10)

79,624
4,118
121,820(89)

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

19,43623,052

205,473

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

939
287
(11)

1,451
13
178

12,933116
1,587

Total accumulated other comprehensive income ………………

1,215

1,642

14,636

Non-controlling interests ………………………………………

356

406

3,619

Total net assets …………………………………………………

21,007

25,100223,728

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

31,66436,037321,214--

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, 2017

Thousands of
U.S. dollars(Note 1 )2017

Millions of yen
2016

2017

￥

￥

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

22,27015,162
7,108

27,632
17,947
9,685＄
246,296
159,970
86,326

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

5,153

5,853

52,170Operating Income……………………………………………………..

1,955

3,832

34,156

Other income (expenses)
Interest and dividend income……………………………………………
Interest expenses…………………………………………………………
Foreign exchange gains（losses) …………………………………………
Equity in earnings（losses) of affiliates……………………………………
Gain(losses) on sales of investment securities ……………………………
Gain(losses) on sales of investment in stocks of affiliated company……
Insurance income ………………………………………………………
Other, net…………………………………………………………………
Total other income (expenses) ………………………………………

67
(55)
44
38
109
52
45
300

59
(45)
190
3
(4)
102
305

526
(401)
1,694
27
(36)
909
2,719

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

2,255

4,137

36,875

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

312
18

731
(515)

6,516
(4,590)Net Income ………………………………………………………….………

1,925

3,921

34,949Net Income attributable to non-controlling interests ……………………

99

54

481

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

1,826

3,867

34,468154.64154.64
16.00

U.S. dollars(Note 1 )
＄
1.38
1.38
0.14

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－

￥

￥
73.00
73.00
10.00

Consolidated Statements of Comprehensive Income
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESTwo years ended March 31, 2017

Thousands of
U.S. dollars(Note 1 )2017

Millions of yen
2017

2016
￥
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.

－7－

￥

＄

1,925

3,921

34,949

(84)
(507)
(145)
(736)
1,189

512
(265)
189
436
4,357

4,563
(2,362)
1,685
3,886
38,835

1,124
65

4,295
62

38,283552

Consolidated Statements of Shareholders' Equity
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESTwo years ended March 31, 2017

Millions of yen
Shareholders' equity
Number of

Balance at March 31, 2015 …………………………………

Additional

Non-controllinginterests

Unrealized

shares ofCommonpaid-in

Retainedcommon stock

stock

capitalearnings

￥

￥

￥

8,933

462

9,438

25,021,832

8,933

462

Retirement

Non-

Translation

benefitcontrollingTotal

securities adjustments

adjustmentsinterests

net assets￥￥

Treasury gain on otherstock￥

25,021,832

￥

￥

￥

(9)

1,024

760

134

319
(12)

(976)

8,474

(9)

1,024

760

134

307

20,085(964)

Cumulative effects of changes in accounting policies ……
Restated balance at March 31, 2015 ………………………

Accumulated othercomprehensive income

21,061Net Income ………………………………………………

-

-

-

1,826

-

-

-

-

-

1,826

Cash dividends……………………………………………

-

-

-

(250)

-

-

-

-

-

(250)

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

-

-

-

-

0

-

-

-

-

0

Net changes of items other than shareholders' equity ……

-

-

-

10,050

(9)

(85)
939

(473)
287

(145)
(11)

49
356

(654)
21,007

Balance at March 31, 2016 …………………………………

25,021,832

8,933

462

Net Income ………………………………………………

-

-

-

3,867

-

-

-

-

-

3,867

Cash dividends……………………………………………

-

-

-

(250)

-

-

-

-

-

(250)

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

-

-

-

-

(1)

-

-

-

-

Net changes of items other than shareholders' equity ……

-

-

-

-

(10)

512
1,451

(274)
13

Balance at March 31, 2017 …………………………………

25,021,832

8,933

462

13,667

189
178

50
406

(1)
477
25,100Thousands of U.S.dollars (Note 1 )Shareholders' equity
Number of

Balance at March 31, 2016 …………………………………

Additional

Accumulated otherNon-controllingcomprehensive income

interests

Unrealized

shares ofCommonpaid-in

Retainedcommon stock

stock

capitalearnings＄＄＄

25,021,832

79,624

4,118

89,580(80)

Retirement

Non-

Translation

benefitcontrollingTotal

securities adjustments

adjustmentsinterests

net assets

＄

＄

＄

3,173

187,245

Treasury gain on other
stock
＄

＄

＄

8,370

2,558

(98)

Net Income ………………………………………………

-

-

-

34,468

-

-

-

-

-

34,468Cash dividends……………………………………………

-

-

-

(2,228)

-

-

-

-

-

(2,228)Net increase of treasury stock ……………………………

-

-

-

-

(9)

-

-

-

-

Net changes of items other than shareholders' equity ……

-

-

-

-

(89)

Balance at March 31, 2017 …………………………………

25,021,832

79,624

4,118

121,820

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

－8－

4,563
12,933(2,442)
116

1,685
1,587

446
3,619

(9)
4,252
223,728

Consolidated Statement of Cash Flows
TOWA CORPORATION AND CONSOLIDATED SUBSIDIARIESTwo years ended March 31, 2017

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

2016
￥
2,255

2017
￥
4,137

2017
＄
36,875

1,311
(38)
42
(67)
55
20
(300)
(109)
(371)
125
109
398
147
(161)
3,416
71
(57)
(175)
3,255

1,251
(3)
55
(59)
45
(17)
4
(3,142)
(980)
(68)
980
305
42
2,550
61
(46)
(511)
2,054

11,151
(27)
490
(526)
401
(152)
36
(28,006)(8,735)
(606)
8,735
2,719
374
22,729544(410)(4,555)18,308Cash Flows from Investing Activities:
Purchase of investment securities …………………………………………………………
Sale of investment securities ……………………………………………………….
Purchase of property, plant and equipment ……………………………………………….
Sale of property, plant and equipment …………………………………………………….
Payments for transfer of business ……………………………………………………….
Other, net …………………………………………………………………………………
Net cash provided by (used in) investing activities ………………………………………

(7)309(2,061)4(282)
230(1,807)(8)
257(1,572)8
120(1,195)(71)
2,291(14,012)71
1,070(10,651)

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

(562)
1,552
(1,491)
(100)
(0)
(250)
(16)
(2)
(869)

730

6,507

(1,385)
(100)
(1)
(250)
(12)
(2)
(1,020)(12,345)(891)(9)(2,228)(107)(18)(9,091)

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 …………………………………………

(169)
410
5,617

(109)
(270)
6,027

(972)
(2,406)53,721

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

6,027

5,757

51,315

Cash Flows from Operating Activities:
Net Income before income taxes and non-controlling interests ……………………………
Adjustments for:
Depreciation …………………………………………………………………………..
Equity in earnings of affiliates ………………………………………………………..
Amortization of goodwill ……………………………………………………………
Interest and dividends income ………………………………………………………..
Interest expenses ……………………………………………………………………..
Foreign exchange losses (gains) …………………………………………………………
Increase (decrease) in provision for founder merit bonus………………………………
Loss (gain) on sales of investment securities ……………………………………………
Loss (gain) on sales of investment in stocks of affiliated companysecurities ……………
(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 ……………………………………..

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 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, 2017, which was ¥112.19 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 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
TOWA Asia-Pacific Pte. Ltd.
TOWA (Shanghai) Co., Ltd.
TOWA TAIWAN Co., Ltd.
TOWA Jipal Technologies Co., Ltd.
TOWA Semiconductor Equipment
Philippines Corp.
TOWA KOREA CO., LTD
TOWA USA Corporation
TOWA Europe B.V.

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

Korea
The United States of America
Kingdom of the Netherlands

Ownership
20 %Country of Incorporation
Japan

Affiliates(All affiliates are accounted for by the equity method)
Name
Scientific and Semiconductor
Manufacturing Equipment RecyclingCo., Ltd ※※ All the stock that the Company held in Scientific and Semiconductor Manufacturing Equipment
Recycling Co., Ltd, have been transferred to the third party in the fiscal year ended March 31, 2017and its financial statement isn’t included in the accompanying consolidated financial statements for
2017.
(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.

－ 11 －

(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, 2016 and 2017 are as follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2016
2017
2017
Cash on hand and at banks
Less: Time deposits with deposit termof over three months
Cash and cash equivalentat end of year

¥ 6,257¥5,853$52,170

¥ 230

¥96

$855

¥ 6,027¥5,757$51,315(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.

－ 12 －

・ 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.
(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) 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 3～5 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 of maintenanceexpenses of the sold products during the period of warranty.
As of March 31, 2017, the liability for expected warranty costs was ¥105 million ($936thousand).
(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) 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 remeasurements of defined benefit plans ofaccumulated other comprehensive income under net assets, after tax effects have been adjusted.
(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 andliabilities and those as reported in the financial statements.

－ 14 －

(16) 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.
(17) 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.

Changes in Accounting Policies(Application of Practical Solution on a Change in Depreciation Method Due to Tax Reform 2016)
Following the revision to the Corporation Tax Act, the Company has applied the “Practical Solution ona Change in Depreciation Method Due to Tax Reform 2016” (Accounting Standards Board of Japan (ASBJ)
Practical Issues Task Force (PITF) No.32; issued on June 17, 2016) from the fiscal year under review, andchanged the depreciation method for structures acquired on or after April 1, 2016 from the decliningbalance method to the straight-line method.
The impact of this change on the accompanying consolidated financial statements is immaterial.
(Change in revenue recognition method)
Prior to the fiscal year ended March 31, 2017, the Company and its consolidated subsidiaries had used
the revenue recognition method on a shipment basis. From the fiscal year ended March 31, 2017, wechanged to the revenue recognition method for semiconductor equipment on completion of installation. The
period from shipment to completion of installation has become longer due to the increasing overseas sales
ratio, and the system to collect data on completion of installation has been developed by reviewing theoperation process from shipment to completion of installation. Against such a background and inaccordance with the trend of recent international accounting practice, we have adopted this change to betterreflect earnings.
This change of accounting policies have been applied retroactively and the consolidated financial
statements for the year ended March 31, 2016 were adjusted to reflect the retrospective application.
As a result, compared with those prior to retrospective application, net sales, operating income, andincome before income taxes and non-controlling interests for the fiscal year ended March 31, 2016
increased by ¥84 million, ¥14 million and ¥35 million respectively. On the other hand, in the consolidatedbalance sheets of 2016, accounts receivable for trade decreased by ¥2,241 million and inventories increasedby ¥1,580 million.
Reflecting the cumulative impact on the amount of net assets at the beginning of the fiscal year ended
March 31, 2016, the earned surplus at the beginning of that year decreased by ¥964 million.

－ 15 －

4.

Securities(1) The following is a summary of investments in affiliates and other securities at March 31, 2016:
Other securities:
Millions of yen
2016Book Value
Unrealized
Unrealized(Estimated
Cost
gains
lossesfair value)
Market value available:
Equity securities¥ 754¥ 1,297¥ 22¥ 2,029¥ 754¥ 1,297¥ 22¥ 2,029
Market value not available:
Equity securities
3
3
Other securities total¥ 757¥ 1,297¥ 22¥ 2,032
Investments in affiliates:
Millions of yen
2016Book Value
Market value not available:
Equity securities

¥ 260
¥ 260
¥ 2,292

Total(2) The following is a summary of investments in affiliates and other securities at March 31, 2017
Other securities:
Millions of yen
2017Book Value
Unrealized
Unrealized(Estimated
Cost
gains
lossesfair value)
Market value available:
Equity securities¥ 762¥ 1,999¥ 5¥ 2,756¥ 762¥ 1,999¥ 5¥ 2,756
Market value not available:
Equity securities
3
3
Other securities total¥ 765¥ 1,999¥ 5¥ 2,759
Other securities:
Thousands of U.S. dollars (Note 1)
2017
Unrealized
gains

Unrealized
lossesBook Value(Estimatedfair value)$ 6,792$ 6,792$ 17,818$ 17,818

$ 45
$ 45

$ 24,565$ 24,565

27$ 6,819$ 17,818$ 45

27$ 24,592

Cost
Market value available:
Equity securities
Market value not available:
Equity securities
Other securities total－ 16 －

5.

Estimated Fair Value of Financial Instruments
As of March 31, 2016 and 2017, 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
Bonds
Long-term borrowings
Total liabilities

Book Value¥ 6,257
5,195(5)¥ 5,190
2,029¥ 13,476

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

Difference¥ -¥ 5,190
2,029¥ 13,476

¥ ¥ -

2,848
270
263
140
4,248
¥ 7,769

2,848
270
263
141
4,247
¥ 7,769

1
(1)
¥ (0)

¥ -

¥ (21)¥ (21)

Derivative financial instruments

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

Millions of yen
2016
Fair Value¥ 6,257

Book Value¥ 5,853
8,126(7)¥ 8,119
2,756¥ 16,728

Millions of yen
2017
Fair Value¥ 5,853

Difference¥ -¥ 8,119
2,756¥ 16,728

¥ ¥ -

3,474
1,000
570
40
2,861
¥ 7,945

3,474
1,000
570
40
2,861
¥ 7,945

0
(0)
¥ (0)

¥ -

¥ (9)

¥ (9)

Derivative financial instruments－ 17 －Cash and deposits
Notes and accounts receivable
Less:Allowance for Doubtful Accounts
Investment securities
Total assets

Thousands of U.S. dollars (Note 1)
2017Book Value
Fair Value
Difference$ 52,170$ 52,170$ 72,431(62)$ 72,369$ 72,369$ 24,565
24,565$ 149,104$ 149,104$ -Notes and accounts payable
Short-term borrowings
Accrued income taxes
Bonds
Long-term borrowings
Total liabilities

30,965
8,913
5,081
357
25,501$ 70,817

30,965
8,913
5,081
357
25,501$ 70,817

0
(0)
$ (0)

$ -

$ (80)$ (80)

Derivative financial instruments

Financial instruments for which it is extremely difficult to determine the fair value as of March 31, 2016
and 2017 were as follows, respectively.

Millions of Ｙen
2016
2017
¥ 263
¥ 3

Unlisted equity securities

Thousands of
U.S. dollars(Note 1)2017
$ 27

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.
6.

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, 2016 are 0.9% and 2017 are 0.4%, respectively.
Long-term debt as of March 31, 2016 and 2017 consisted of the following:

Millions of Ｙen
2016
2017
¥ 4,248¥ 2,861
60
80
40
7
5
(1,490)(1,277)¥ 2,905¥ 1,629

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)
2017
$ 25,501357
45(11,383)$ 14,520

The aggregate annual maturity of long-term debt after March 31, 2017 is summarized as follows:
Thousands of
U.S. dollars
Millions of Ｙen(Note 1)Years ending March 31,
2018¥ 1,277$ 11,383
2019
822
7,327
2020
510
4,546
2021 and thereafter
297
2,647
¥ 2,906$ 25,903
At March 31, 2016 and 2017, the following assets were pledged as collateral for short-term borrowings
and long-term debt:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2016
2017
2017
Principal of debt:
Short-term borrowings¥ ¥ $Portion due within one year
550
446Long-term borrowings
50
1
9
¥ 55
¥ 51
$ 455
Assets pledged as collateral:
Buildings and structures
Machinery and equipment
Land

¥ 162
0
108
¥ 270

¥ 159
0
110
¥ 269

$ 1,4170980$ 2,397

Regarding loan payables, the syndicate loan contract with limit of ¥75 million ($669 thousand),commitment line contracts with limits of ¥2,500 million ($22,284 thousand), and convertible term loan
contract with limit of ¥25 million ($223 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 ¥10,710 million ($95,463thousand) 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 on and 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 and eachsemiannual period must be maintained ¥14,750 million ($131,473 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, 2016.

－ 19 －

(Financial covenant terms included in the convertible 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 ¥10,710 million ($95,463 thousand) or more.
(2) The ordinary losses before depreciation in both consolidated statements of income for each fiscal
year must not be existed on and 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 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.
As of February 27, 2017, the company revised its retirement benefit plans from the previous final-salary
proportional system to a point system. As a result of this change, prior service costs (decrease in retirement
benefit obligations) of ¥170million ($1,515thousand) were incurred.
(1) Defined benefit plans
1) The changes in defined benefit obligation for the year ended March 31, 2016 and 2017 were as follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2016
2017
2017
Retirement benefit obligations at beginning of year
¥ 1,745¥1,885$ 16,802
Service cost
149
158
1,408
Interest cost
13
6
53
Actuarial (gain) loss
42
11
98
Retirement benefits paid
(44)
(52)
(463)
Past service cost(170)
(1,515)
Others
(19)
(18)
(160)
Retirement benefit obligations at end of year
¥ 1,886
1,820$ 16,223
2) The changes in plan assets for the year ended March 31, 2016 and 2017 were as follows:

Millions of Yen
2016
2017
¥ 1,458¥1,509
29
30
(72)
33
137
141
(43)
(35)
¥ 1,509
1,678

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

－ 20 －

Thousands of
U.S. dollars(Note 1)
2017
$ 13,450
267
294
1,257
(311)
$ 14,957

3) The balance of retirement benefit obligations and plan assets at fair value as of March 31, 2016 and 2017,
liabilities and assets recognized in the consolidated balance sheet were as follows:

Funded retirement benefit obligations
Plan assets at fair value
Unfunded retirement benefit obligations
Net liability recognized in the consolidated balance sheet
Liability for retirement benefits
Net liability recognized in the consolidated balance sheet

Millions of Yen
2016
2017
¥ 1,630¥ 1,573(1,509)(1,678)
121
(105)
256
247
¥ 377
¥ 142
377
¥ 377

142
¥ 142

Thousands of
U.S. dollars(Note 1)2017
$ 14,021(14,957)
(936)
2,202
$ 1,266
1,266$ 1,266

4) The components of retirement benefit expenses for the year ended March 31, 2016 and 2017 were as
follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2016
2017
2017
Service cost
¥ 149
¥ 158
$ 1,408
Interest cost
13
545
Expected return on plan assets
(29)
(30)
(267)
Amortization of actuarial (gain) loss
(31)
(1)
(9)
Amortization of past service cost
(1)
(9)
Retirement benefit expenses
¥ 102
¥ 131
$ 1,168
5) Remeasurements of defined benefit plans in other comprehensive income (before tax effect) for the year
ended March 31, 2016 and 2017 are as follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2016
2017
2017
Past service cost¥ ¥ (169)$ (1,506)
Actuarial gain (loss)
142(20)$ (179)Total¥ 142¥ (189)$ (1,685)
6) Remeasurements of defined benefit plans in accumulated other comprehensive income (before tax effect)
as of March 31, 2016 and 2017 are as follows:
Thousands of
U.S. dollars
Millions of Yen(Note 1)
2016
2017
2016
Unrecognized past service cost
¥ ¥ 169$ 1,506
Unrecognized actuarial gain (loss)
(17)
4
36
Total
¥ (17)¥ 173$ 1,542－ 21 －

7) Plan assets, by major category, as a percentage of total plan assets as of March 31, 2016 and 2017 wereas follows:
2016
2017
Debt securities
38%
41%
Equity securities
38%
37%
General accounts at life insurance companies
19%
19%
Others
5%
3%
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:
2016
2017
Discount rate
(0.14)%(0.05%)
Expected long-term rates of return on plan assets
2.00%
2.00%
Expected pay raise rate ※
2.0%
7.1%
※Expected pay raise rate for 2017 is an expected rate of the increase of the retirement benefit points.
(2) Defined Contribution plans
Certain consolidated subsidiaries have defined contribution plans and amount of the contribution for theyear ended March 31, 2016 and 2017 were ¥33million and ¥56million ($499thousand).
8.

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% or more of cash dividends and otherappropriations of retained earnings paid out with respect to each financial period be set aside in the legal
reserve until an aggregate amount of additional paid-in capital and the legal reserve equals 25% of theamount 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 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.

9.

Research and Development Costs
Research and development costs charged to income for the years ended March 31, 2016 and 2017 were
¥473million and ¥724million ($6,453 thousand), respectively.

－ 22 －

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 33.0% and 30.8% for the year ended of March 31, 2016 and2017.
The deferred tax assets and deferred tax liabilities at March 31, 2016 and 2017 are as follows:
Thousands of
U.S. dollars
Millions of Ｙen(Note 1)
2016
2017
2017
Deferred tax assets:
Inventory write down
¥ 110
¥ 171
$ 1,524
Impairment loss of fixed assets
378
353
3,146
Retirement and severance benefits
109
91
811
Trial product for development
350
397
3,539
Net operating loss carried forward
447
24
214
Other, net
528
642
5,722
Valuation Allowance(1,753)(935)(8,334)
169
743
6,622
Deferred tax liabilities:
Other, net
(439)
(715)
(6,373)(439)(715)(6,373)Net deferred tax assets/(liabilities)¥ (270)¥ 28$ 249
11. Other Comprehensive Income(Loss)
The reclassification adjustments and tax effects for components of other comprehensive income (loss)
for the year ended March 31, 2016 and 2017 are as follows:
Thousands of
U.S. dollars
Millions of Ｙen(Note 1)
2016
2017
2017
Unrealized gain on other securities:
Amount arising during the year
¥ (19)¥ 719$ 6,409
Reclassification adjustments for losses(109)(gains) realized in net income
Before Tax effect
(128)
719
6,409
Tax effect44(207)(1,846)
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)

(84)

512

4,563

(507)

(265)

(2,362)

-

-

-

(507)

(265)

(2,362)

(111)

192

1,711

(31)

(3)

(26)

(142)
(3)

189
0

1,685
0

(145)

189

1,685

¥ (736)¥ 436$ 3,886－ 23 －

12. Leases
The Company and its consolidated subsidiaries and equity method affiliates have been utilizing financelease arrangements other than those deemed to transfer the ownership of the leased property to the lessee to
employ certain machinery and equipment.
13. Contingent Liabilities
The Company and its consolidated subsidiaries have no significant contingent liabilities.
14. Segment Information(1) Segment by products
Millions of Ｙen

Year ended March 31, 2016

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¥1,226
1,226¥-¥ 22,270
22,27019,196¥ 1,848

1,119
¥ 107

¥-

20,315¥ 1,955¥ 30,043¥ 1,205¥ 42¥ 1,621¥ 106¥ -¥ ¥ ¥ -

¥ 31,664¥ 1,311¥ 42¥ 260¥ 1,961¥ ¥ 35

¥ ¥ -

¥ 260
¥ 1,996

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¥ 21,044
21,044

Year ended March 31, 2017

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

Elimination/
Unallocated
Assets¥ 26,382
26,382¥1,2501,250¥-¥ 27,632
27,632

22,683¥ 3,699

1,117
¥ 133

¥-

23,800¥ 3,832¥ 34,483¥ 1,159¥ 55¥ 1,554¥ 92¥ -¥ ¥ ¥ -

¥ 36,037¥ 1,251¥ 55¥ ¥ 1,230¥ ¥ 14¥ ¥ -¥ ¥ 1,244－ 24 －

Year ended March 31, 2017

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$ 235,154
235,154$ 11,142
11,142$ -$ 246,296
246,296

202,184$ 32,970

9,956$ 1,186$ -212,140$ 34,156$ 307,362$ 10,331$ 490$ 13,852$ 820$ -$ $ $ -$ 321,214$11,151$ 490$ $ 10,964$ $ 125$ $ -$ $ 11,089(2) Sales by region

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

Millions of Ｙen
2016
2017
¥ 3,310¥ 3,854
18,269546
145
18,960¥ 22,270－ 25 －

22,704990
84
23,778¥ 27,632

Thousands of
U.S. dollars(Note 1)
2017
$ 34,352
202,3718,824
749
211,944$ 246,296

Corporate Information
as of June 29, 2017
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

Director

Operations:

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

Hiroshi Uragami
Yoshizumi Tamura
Koichi Ishida

Director
Full-time Audit and Supervisory
Committee Member

Paid-in Capital:¥8,932,627,777

Hisayoshi Kobayashi

Common Stock
Authorized:

80,000,000

External Director

Issued Number of Shares:

25,021,832

Audit and Supervisory Committee

100

Member

Unit for Trading:
Stock Listings:
Transfer Agents:

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

First Section of the Tokyo Stock Exchange

Hajime Kuwaki

Mizuho Trust & Banking Co., Ltd

Daisuke Wake

From April 1 to March 31457
http://www.towajapan.co.jp
BANDICK Corporation
TOWATEC Co., Ltd.
TOWA Asia-Pacific Pte. Ltd.
TOWAM Sdn. Bhd.
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－ 26 －

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