ANNUAL REPORTFY2022

CONTENTSMESSAGE TO OUR SHAREHOLDERS･･････････････････････････････2
Greetings･･････････････････････････････････････････････････2
Economic Overview･･････････････････････････････････････････2
Performance･･･････････････････････････････････････････････2
Looking Ahead･･････････････････････････････････････････････4

TOWA Vision 2032･･････････････････････････････････････････････････4
The First medium–term management plan･･･････････････････････････････5

TOWA GROUP SUSTAINABILITY･･････････････････････････････････7
Basic Policy of Sustainability････････････････････････････････････7
Governance and Risk management of overall Sustainability･･･････････7
TCFD DISCLOSURES･･･････････････････････････････････････････8Governance･･･････････････････････････････････････････････････････8Strategy･･････････････････････････････････････････････････････････8
Risk Management･････････････････････････････････････････････････10
Metrics and Targets････････････････････････････････････････････････11

RESPONSE TO HUMAN CAPITAL････････････････････････････････12

Basic Policy on Human Resource Development･･･････････････････････････12Internal Environmental Policy････････････････････････････････････････12

CONSOLIDATED FINANCIAL STATEMENTS･････････････････････････13
Consolidated Balance Sheet･･･････････････････････････････････13
Consolidated Income Statements･･･････････････････････････････15
Consolidated Statement of Comprehensive Income･････････････････16
Consolidated Statement of Shareholders’ Equity･･･････････････････17
Consolidated Statement of Cash Flows･･･････････････････････････20
Notes to Consolidated Financial Statements･････････････････････21
Note 1 – Significant Matters Constituting the Basis ofPreparation of Consolidated Financial Statements･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･21
Note 2 – Significant Accounting Estimates･･･ ････ ･･･ ･･ ･･･ ･･･ ･ ････ ･･･ ･･ ････24
Note 3 – Change in Presentation Method･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･26
Note 4 – Additional Information･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･26
Note 5 – Consolidated Balance Sheets･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･26
Note 6 – Consolidated Statements of Income･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･27
Note 7 – Consolidated Statements of Comprehensive Income･ ･ ･ ･ ･ ･･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･28
Note 8 – Consolidated Statement of Changes in Net Assets････････････････････29
Note 9 – Matters related to consolidated cash flow statements･･･････････････ ･･31
Note 10 – Lease Transactions･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･31
Note 11 – Financial Instruments･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･32
Note 12 – Securities･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･36
Note 13 – Retirement Benefits･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･38
Note 14 – Tax effect accounting･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･41
Note 15 – Revenue Recognition･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･42
Note 16 – Segment Information･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･43
Note 17 – Per share information･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･ ･47

Consolidated Supplementary Schedules･･････････････････････････48
OTHERS･･･････････････････････････････････････････････････ 50
Corporate information
1

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

Economic Overview
During the consolidated fiscal year ended March 31, 2023, various countries showed signs of picking up
as they lifted movement restrictions after living with COVID-19. However, recovery in the global economy
slowed down due to high energy prices and global price hikes caused by the prolonged Russia-Ukraine war aswell as rising interest rates in the U.S. and Europe to control inflation. As a result, outlooks have remained
uncertain.

Performance
In the semiconductor industry, inventory adjustments were made for memory semiconductors due todeclining demand for computers and smartphones, and planned capital investment continued to be reduced.
On the other hand, demand for in-vehicle semiconductors and power semiconductors, which contribute toenergy conservation, remained solid.
Under these circumstances, in the Southeast Asia region, where semiconductor-related capital
investment is continuing given the mounting demand for in-vehicle semiconductors and power
semiconductors as well as geopolitical risks, on April 6, 2023, the Group took over the mold manufacturingbusiness of K-Tool Engineering Sdn. Bhd. In collaboration with our existing bases in Southeast Asia, we will
establish an integrated system for designing, manufacturing, and selling semiconductor manufacturing
equipment and molds, thereby expanding our process business, and building even stronger relationships withsemiconductor manufacturers.
As for earnings, the Company again achieved record high net sales after the previous fiscal year, as a highlevel of order backlogs accumulated from the previous fiscal year resulted in steady production and sales.
Meanwhile, decreases were posted in profits at each level compared to the previous fiscal year, althoughhigher sales volume of high-value-added transfer equipment for power semiconductors and EVs increased unit
selling prices and improved the product mix of transfer equipment. The main factors of the decreases include
inflated production costs at overseas subsidiaries when converted to yen, which has weakened significantly2since the beginning of the fiscal year, and increased selling, general, and administrative (SG&A) expenses,
which were attributable to the reinforcement of manpower to achieve the “TOWA Vision 2032” and proactive
development of molding equipment for advanced packages.
The Group performances in the consolidated fiscal year are recorded as follows.
Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent

53,822 million yen (up 3,155 million yen, or 6.2% year–on–year)
10,037 million yen (down 1,468 million yen, or 12.8% year–on–year)
10,206 million yen (down 1,518 million yen, or 12.9% year–on–year)
7,346 million yen (down 783 million yen, or 9.6% year–on–year)

The main factors of (year–on–year) increase/decrease in operating profit for the consolidated fiscal year
are as follows.
Financial effects of increased Net sales
Financial effects of increased Unit priceFinancial effects of exchange rate fluctuation
Financial effects of increased development fee
Financial effects of increased SG&A expenses

an increase of 1,366 million yen
an increase of 1,365 million yen
a decrease of 1,687 million yen
a decrease of 889 million yen
a decrease of 1,623 million yen

The results by segment are as follows.
Semiconductor Manufacturing Equipment Business
Operating results in the Semiconductor Manufacturing Equipment business were net sales of 49,285
million yen (up 2,569 million yen, or 5.5% year-on-year), with significant growth in sales mainly for in-vehicle
and power semiconductors recorded in the Southeast Asia region.
Regarding profits, although, as mentioned earlier, higher unit selling prices and improved product mix
within transfer equipment were achieved thanks to the increased sales volume of high value-added transfer
equipment, the impact of foreign exchange rates and the increase in SG&A expenses pushed down operating
profit to 9,402 million yen (down 1,605 million yen, or 14.6% year-on-year).
Fine Plastic Molded Products Business
Operating results in the Fine Plastic Molded Products business were net sales of 1,950 million yen (up 227
million yen, or 13.2% year–on–year) and operating profit of 387 million yen (up 75 million yen, or 24.1% year–
on–year).
Laser Processing Equipment BusinessIn the Laser Processing Equipment business, net sales were 2,586 million yen (up 358 million yen, or
16.1% year–on–year) and operating profit was 246 million yen (up 62 million yen, or 33.7% year-on-year). Thiswas due to an increase in sales of wafer markers to semiconductor manufacturers.
3

Looking Ahead
With a longstanding commitment to continual technical progress, the Group has ever since its founding
upheld its Corporate Mission to “contribute to the growth of the world’s industries by boldly devoting all ourenergy to producing results for the purpose of developing and providing key enabling technologies for eachsuccessive generation of products, while maintaining a ‘quarter-lead’ over the competition.”With this Corporate Mission as the foundation for all our activities, we aim to create the world’s mostadvanced solutions in anticipation of market needs and to improve our corporate value, by thoroughly
optimizing QCDS (Quality, Cost, Delivery and Service), pursuing safety, complying with laws and untiringly
pursuing CS (Customer Satisfaction), which means to satisfy customer needs.
In March 2022, the Group announced its new long–term vision “TOWA Vision 2032” and the first
medium–term management plan to achieve it. Under this vision, we aim to achieve further growth andincrease corporate value and to become a unique company globally unrivaled by other companies.
“TOWA Vision 2032” sets our goal to achieve net sales of 100,000 million yen and an operating profit of
25% in 10 years under the theme of “To the Top of the World through Change” In addition to reexamining
what kind of company TOWA Corporation should be in the future, we have also determined what we want toachieve in the next 10 years.

TOWA Vision 2032
1. Theme
To the Top of the World through Change

2. Ideal state・To become a world–leading company that continues to create customer value through packaging process
proposals.
・To become a company that realizes a sustainable society using TOWA Corporation technology.
・To become a company well–known for its active dissemination of information.
・To become a company where employees can work with a smile, where the traditions of corporate culture
and diverse values are respected.

3. Business Target (long–term vision)
We have set the target for the Group as follows. Recognizing these as important indicators, we will strive
to increase our corporate value.
(Millions of yen)
FY2024FY2027

FY203160,00076,000100,000

Semiconductor Manufacturing
Equipment Business

44,00052,50062,500Fine Plastic Molded Products
Business

2,200

2,800

4,000

New Business

11,20017,50029,500Laser Processing Equipment
Business

2,600

3,200

4,000

Operating profit

12,60016,70025,000Operating margin

21.0%

22.0%

25.0%

SEGMENTNet Sales

The above future matters are based on judgments made by the Group as of the end of the current
consolidated fiscal year.
4The basic policies of the first medium–term management plan aimed at achieving “TOWA Vision 2032”
and the details of initiatives to address issues in each area are as listed below. The first medium–termmanagement plan is positioned as a period for “strengthening the foundation to become the ‘Top of theWorld.’” In addition to developing new technologies and investing in manufacturing facilities, we will actively
train human resources to pass on TOWA Corporation’s technologies to the next generation and acquire humanresources to expand our operations. Also, we will invest in digital transformation (DX) to improve the efficiency
of office work and production sites. As a result, the profit margin will temporarily decline in the first medium–
term management plan. However, we plan to improve the operating margin from the second medium–termmanagement plan on the back of these investments.

The First medium–term management plan
1. Theme
Process Innovation Created by TOWA Corporation

2. Basic policies
・Increase profitability by commercializing the added value of our technologies, quality, and processes(know–how) through a paradigm shift.
・Maximize throughput and strengthen market competitiveness and financial base by utilizing DX.
・Develop new businesses and increase earnings based on core technologies.
・Develop human resources who will lead the next generation with abundant diversity and a spirit ofchallenge.
・Improve corporate value through active engagement in the SDGs and ESG.

3. Business strategies
Semiconductor Manufacturing Equipment business・Strengthen the profitability of the semiconductor business by developing processing business that takes
advantage of added value.
・Strengthen the production system and financial base through MIP (Minimal Inventory & Period) targeting
reduced lead time and inventory.
・Anticipate customer needs and develop products that meet the SDGs and ESG investment with a senseof speed by actively investing in development resources.
・Capture the market through the combination of singulation and blades.
Fine Plastic Molded Products business・Increase the added value of the TOWA Corporation brand and expand the scale of operations based oncore technologies developed in the chemical products segment.
・Build a stable earnings structure by further pursuing quality, cost, and delivery time.
・Diversify our products by taking advantage of our medical device licenses.
New business・ Transform our portfolio by making new key businesses independent through the application anddevelopment of core technologies.
・Realize new businesses by creating original TOWA Corporation products.
・ Contribute to the stable operation of our customers through TSS operations to secure long–term
relationships.
・Strengthen competitiveness and expand market share by reducing costs through global production bases.
Laser Processing Equipment business・Create new products by strengthening applications to “create value” and “acquire value.”・Increase production capacity, reduce costs, and strengthen sales systems and services by utilizing the
TOWA Group’s production and sales bases.
・Develop into a company that can solve problems by thoroughly examining customer processes.

54. Strategies by function
Sales strategies
・Expand sales and improve profitability by strengthening process support and building a business modelthat can only be created with our technology.
・Expand the range of application of our proprietary compression equipment.
・Improve customer satisfaction by strengthening global sales, management, and service systems.
Production strategies
・Reduce costs and shorten lead times by optimizing global production and purchasing systems.
・Improve quality reliability by improving production technology.
・Strive to produce value–added products by utilizing DX.
・Develop human resources and build a business structure that can cope with changing environments(risks).
Development strategies
・Develop new products that meet customer needs through a paradigm shift.
・Establish a de facto standard through the development of molding processes and a next–generation
molding revolution.
・Promote environmentally friendly development with the SDGs and ESG in mind.
Human resources/organizational strategies
・Expand TOWA Corporation’s global bases that will handle everything from process development tosolution proposals.
・Develop global human resources who will lead the next generation.
・Promote work style reform by improving operational efficiency through DX.
・Establish TOWA Academy to pass down TOWA Corporation’s technologies.

5. Business Target (the First medium–term management plan)
We have set the target for the Group as follows. Recognizing these as important indicators, we will strive
to increase our corporate value.
(Millions of yen)
FY2022
FY2023
FY2024(results)
53,82251,00060,00041,26737,00044,000

1,950

2,000

2,200

New Business

8,016

9,300

11,200Laser Processing Equipment
Business

2,586

2,600

2,600

Operating profit

10,037

8,100

12,600Operating margin

18.6%

16.0%

21.0%

Ordinary profit

10,206

8,100

12,600

SEGMENTNet Sales
Semiconductor Manufacturing
Equipment Business
Fine Plastic Molded Products
Business

Net income attributable to owners
7,346
5,700
8,800
of parent(Note) The target for FY2023, is the forecast of consolidated financial results announced on May 11,2023.
The above future matters are based on judgments made by the Group as of the end of the current
consolidated fiscal year.
6

TOWA GROUP SUSTAINABILITY
The Group's approach to sustainability and its initiatives are as follows.
In addition, forward-looking statements are based on the Group's judgment as of the end of the current
consolidated fiscal year.

<Basic Policy of Sustainability>

To enhance our corporate value and realize sustainable society, we (TOWA Group) contribute to thedevelopment of industries through our management philosophy “Quarter Lead” and our Corporate Mission,
Code of Conduct and Environmental Policy, and we also build firm relationships of trust with all of our
stakeholders including customers, shareholders, investors, suppliers, employees and their families, andcommunities.

<Governance and Risk management of overall Sustainability>

GovernanceTo oversee and promote sustainability-related activities from a company-wide perspective, we haveassigned specialized personnel to the Corporate Planning Department and established an ESG/SDGs
Subcommittee, which regularly reports to the Board of Directors on the progress and performance of various
measures.
The Board of Directors deliberates and supervises the contents discussed by the subcommittee.
Risk management
The Company has established a Risk Management Committee chaired by the President & CEO inaccordance with the Risk Management Committee Regulations.
The Committee evaluates various risks in the Company's business each year and determines risk
countermeasures such as avoidance, transfer, reduction, and retention, and risk countermeasures are
implemented by the Risk Management Subcommittee, a subordinate body of the Committee.
For sustainability-related risks, the ESG/SDGs Subcommittee implements countermeasures and reports
regularly to the Board of Directors on the status of their implementation.

7

TCFD DISCLOSURES
Recognizing "climate change" as one of the important management issues, we declared our support for
the TCFD Recommendations (the Task Force on Climate–related Financial Disclosures) in May 2022. We will
strive to disclose information (Governance, Strategies, Risk Management, Metrics and Targets) related toclimate change in line with the content of the recommendations.

Governance
Board of Directors Oversight and Management Role

We have established a system to promote environmental management, and the Board of Directors
deliberates and decides on basic policies and other matters related to climate change, and implements risk
management.

Strategy
We strive to understand the various risks and opportunities that may arise from climate change. We
organized the risks and opportunities that future climate change will bring to our business, and evaluated theimpact of those risks and opportunities by conducting qualitative and quantitative scenario analysis including
the 1.5°C scenario. The target of this evaluation is the entire supply chain including semiconductor-related
products.

Climate–related Risks and Opportunities
a. Possible Risks
In the TCFD Recommendations, climate change–related risks are classified into two categories: Transition
Risks and Physical Risks, and we identified risk items based on the recommendations. Among them, we haveidentified the major risk items that are expected to be highly related to our business and organized the impacts(Table 1).
Table 1

Possible Risks

Technology
Physical

Reputation

Risks

Policy and Legal

Items (Risks / Opportunities)

Time
Frames*1

Details

Medium・Increase of procurement costs (carbon tax, etc.) for
materials that emit large amounts of CO2
・Increase of costs due to carbon tax related to ownbusiness activities

Short

・Increase of costs by introducing renewable energy andupdating equipment to save energy

Medium・Energy–inefficient products are eliminated, shifting
demand for higher performance products.
・Loss of business opportunities due to failure to meetcustomers' energy–saving and decarbonization needs

R & D costs for new
technologies or risk of
research failure

Medium・Risk of failure to recover technology development costs
when inferiority due to competition for technology
development (improvement of energy–saving
performance, etc.)

Decline in corporate
evaluation due to non–achievement of reduction
targets

Medium・Customer attrition due to reputational risk whenenvironmental initiatives are inadequate
・It becomes difficult to secure funds from the market.

Changes in consumer
preferences

Medium・As end customer preferences change, customers require
low carbon when procuring.

Short

・Suspension of business activities at our own plants andbases due to damage from typhoons and floods
・Delays in parts delivery due to damage to suppliers anddistribution warehouses
・Decrease in production efficiency due to increased power
outages caused by lightning strikes

Emissions trading/carbon taxes
Tightening ofenvironment–related
regulations such as energy
savingLoss of sales opportunities
due to delays intechnology development
to save energy and reduce
CO2 emissions

Severe disasters such as
typhoons and floods*1 Short: within 3 years Medium: in 3–5 years Long: more than 5 years ahead

8b. Possible Opportunities
As society as a whole is required to further promote energy conservation activities and energy efficiency,
we anticipate expanding demand for equipment that contributes to Greenhouse Gas emissions and waste
reduction, and expanding demand for products that accompany demand for semiconductors such as EVs as
our business opportunities (Table 2).

Opportunities

Table 2 Possible Opportunities
Items (Risks / Opportunities)

Time Frames *1

Use of efficient means oftransportation (Modal shift)

Short

Use of low emission energy
sources

MediumDevelopment and expansion of
low–emission products andservices
Acquiring new market
opportunities through climatechange measures
Utilization of recycling

Short
MediumDetails
・EV will account for 60% *2 of new car sales in 2030,
and demand for semiconductor manufacturing
equipment will increase due to the expansion ofautonomous driving.
・Increase of demand for manufacturing equipment
because of demand for semiconductors for power
conditioners, etc. due to the introduction of newtechnologies and the conversion to distributed
energy・Expanding demand for semiconductor
manufacturing equipment (compression molding
equipment) that reduces waste emissions
・Increase of orders from customers who aremembers of RE100, etc. due to the realization of
decarbonization of our company
・Expanding demand for used machine sales businessfor semiconductor manufacturing equipment fromthe perspective of the circular economy

Short*1 Short: within 3 years Medium: in 3–5 years Long: more than 5 years ahead*2 Global EV Outlook 2021(Sustainable Development Scenario)c. Scenario Analysis
In order to verify the impact of climate change on our group, we set multiple scenarios including the
1.5°C scenario by referring to the scenarios such as IEA "World Energy Outlook 2021" and IPCC 6th Report,
and in each scenario, we analyzed the impact of our business on it (Table 3).
Table 3 Overview of the set scenario
Set Scenario
1.5°C Scenario
Risks

Forecast
business
environment

Referencescenario

Current Scenario
Risks

・Toward the realization of a world of 1.5°C, theintroduction of carbon tax is progressing all over
the world, and in 2030, the carbon tax will
・As the frequency of severe disasters such as
exceed 130$/t– CO2 in developed countries.
increased typhoon damage and increased flood
・Customers' environmental awareness will
frequency increases, the risk of damage to ourincrease, and energy saving and CO2 saving ofown plants and supply chain bases increases.
manufacturing equipment will be strictly
required. However, the development of energy–saving technology will make great progress.
Opportunities

Opportunities
・With the growth of EV sales, the spread of・Demand for semiconductor manufacturing
renewable energy equipment, and the growing
equipment will expand significantly from theneeds of customers to achieve international
current level due to the growth in EV sales, theinitiatives (RE100, SBT, etc.), the demand for
spread of renewable energy equipment, and thesemiconductor manufacturing equipment is
growing needs of customers to achieve
increasing, but the growth will be slower than ininternational initiatives (RE100, SBT, etc.).
the 1.5°C scenario.
・With the spread of the concept of circular・From an economic point of view, the used
economy in addition to economic efficiency, themarket for manufacturing equipment isused market for manufacturing equipment will
expanding, but the growth will be slower than in
expand significantly from the current level.
the 1.5°C scenario.
・IEA: WEO2021 NZE and SDS・IEA: WEO2021 STEPS
・IPCC Sixth Assessment Report / Working Group I ・IPCC Sixth Assessment Report / Working Group I
Report: SSP1–1.9, SSP1–2.6
Report: SSP3–7.0, SSP5–8

9

World view of each scenario drawn by TOWA
Based on the above view of the world, we evaluate the financial impact of risk items that can be evaluatedquantitatively as follows.
d. Transition Risks
When we estimated the impact of the introduction and rise in carbon prices on our business, we
confirmed that the impact was limited, with a cost increase of only about 30 million yen in Japan and overseas.
We believe that these are the results of our efforts to convert the power used to renewable energy, and wewill continue to carry out business activities that are not affected by the transition risk by further converting
to renewable energy.
e. Physical Risks from Natural Disasters
With reference to the IPCC Sixth Assessment Report, the probability of flood occurrence in the world of
the current scenario (up 4 degrees) is assumed to be 2.7 times that of 1850–1900.
When we estimated the damage in the event of a disaster, we confirmed that the impact was about 30
million yen, and the impact was limited.
On the other hand, in case of a disaster, we will promote the development of a BCP system such as theconstruction of an alternative production system at other offices and group companies, aiming for businessactivities that are not affected by physical risks.

Risk Management
We have set up a “Risk Management Committee” chaired by the President & CEO to regularly identify
and evaluate risks that should be dealt with. Under this committee, multiple risk management subcommittees
have been set up to monitor risks in internal control, export control, quality assurance, disastercountermeasures, etc. for each theme every month. The activities of these subcommittees are reported to theBoard of Directors every quarter, and the contents are confirmed by outside directors.
In the future, we will identify and evaluate climate–change related risks as important risks that should
be managed.

10Metrics and Targets
We are fully aware that reducing greenhouse gas emissions, which cause climate change, is an important
issue. We set CO2 emission reduction targets and will work on Carbon Neutrality throughout the Group.
・In FY2030, we will reduce CO2 emissions(Scope 1+2) from our group by 42% from FY2020.
・We aim to achieve net–zero emissions(Carbon Neutrality)by 2050.
In addition, we are measuring and disclosing CO2 emissions related to Scope 1 and 2, and will announce
the activity results. At our company, CO2 is the only GHG related to our business.
Regarding the CO2 emission reduction target for FY2030, we will work to reduce the total amount afterincorporating a large sales growth plan.

CO2 Emissions Performance and Targets

Sales and CO2 Emission Targets

Please refer to our website for more details of the TCFD disclosures.
https://www.towajapan.co.jp/en/company/environment/

11

RESPONSE TO HUMAN CAPITAL
As part of this idea, we are trying to develop human resources and promote health management. Above
all, we place the highest priority on the health and job satisfaction of all employees.

< Basic Policy on Human Resource Development>

TOWA believes that the source of corporate development is to pass on to the next generation a corporate
culture of "bringing about innovation " through "continuous challenge" actions. TOWA believes that the
support for a variety of challenges of each employee will be led to corporate growth, fostered a culture inwhich employees learn by themselves, and achieved an organization capable of autonomous growth.
In this way, TOWA aims to produce "talent" to inherit the founder ideology, to keep challenging
themselves, and to try to bring about innovation.

<Internal Environmental Policy>

TOWA is committed to maintaining and improving the health of all employees and creating a workplaceenvironment that is full of smiles, based on the belief that when people are healthy, full of energy, both
physically and mentally, and the company's business will flourish.
TOWA also believes that creating an environment, in which TOWA employees can work in good mental
and physical health, will bring wellbeing and happiness to them and their families, and brighter society.
Health Management Promotion Organization
Under the slogan “~Let's grow our healthy tree~”, we are promoting our health promotion activities
based on the image of "the tree of health" that is gradually bearing fruit and growing up.

The indicators and targets related to the above basic policy and the main efforts to achieve them are as
follows.
Indicators
Mid-career management staff ratio
Foreigner management staff ratio
Female management staff ratio
Health checkup rate
BMI (18.5 to under25)
Smoking rate
Mental Health checkup rate
Overall Health Risk *1
Subjective Vitality Scale *2

Targets
35.0% by the year 2032
10.0% by the year 2032
10.0% by the year 2032
Keep 100.0%
80.0%
10.0%
Keep 100.0%
90
110Results (FY2022)
35.0%
6.3%
3.8%
100.0%
67.7%
19.3%
100.0%
91
105*1 It is a score that indicates the impact of workplace stress on individual health, and is based on survey data conducted by
the Ministry of Health, Labour and Welfare of Japan, with the “National average = 100” and the lower the deviation the better.
*2 It is a score that indicates the level of activity of individuals and workplaces, and is based on survey data conducted by the
Ministry of Health, Labour and Welfare of Japan, with the "National average = 100" and the higher the deviation the better.
*3 Indicators, targets, and results for the submitting company (TOWA Corporate HQ) only.

Please refer to our website for other Sustainability Initiatives.
https://www.towajapan.co.jp/en/sustainability/
12

CONSOLIDATED FINANCIAL STATEMENTS
TOWA CORPORATION

Consolidated Balance Sheet(March 31, 2022 and 2023)
Thousands of
U.S. dollars(Note1 4. (6))
2023

Millions of yen
2022
AssetsCurrent assets
Cash and deposits
Notes receivable–trade
Electronically recorded monetary claims–
operatingAccounts receivable–trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Current assets
Non–current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation–buildings andstructures
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation–machinery,equipment and vehicles
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Property, plant and equipment
Intangible assets
Other
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Retirement benefit asset
Other
Investments and other assets
Non–current assets
Assets13

2023

12,407433

16,547
73

123,920
547

287

1,201

9,001

11,1095,611
12,073
887
1,410
(1)
44,219

11,693
3,872
10,004
1,530
1,040
(2)
45,96087,57429,00074,923
11,4617,791(21)
344,194

20,53020,972

157,061(11,743)(12,280)(91,970)

8,786
14,821

8,691
16,07565,091
120,386(10,061)(10,707)(80,190)

4,760
5,189
1,143
(214)
928
609
4,159
(3,407)752
21,026

5,367
5,205
1,303
(295)
1,007
240
4,490
(3,643)846
21,35940,19638,984
9,762(2,214)
7,548
1,802
33,626(27,285)
6,341
159,963

1,306
1,306

1,162
1,162

8,704
8,704

3,856
261
397
264
4,779
27,113
71,333

3,929
373
381
301
4,986
27,50873,46829,429
2,797
2,857
2,259
37,342206,009550,203

TOWA CORPORATION

Consolidated Balance Sheet(March 31, 2022 and 2023)
Thousands of
U.S. dollars

Millions of yen
Liabilities
Current liabilities
Notes and accounts payable–trade
Electronically recorded obligations
Short–term borrowings
Current portion of long–term borrowings
Lease liabilities
Income taxes payable
Advances received
Provision for bonuses
Provision for bonuses for directors
Provision for product warranties
Other
Current liabilities
Non–current liabilities
Long–term borrowings
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Other
Non–current liabilities
Liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Shareholders' equity
Valuation and translation adjustments
Valuation difference on available–for–salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Valuation and translation adjustments
Non–controlling interests
Net assets
Liabilities and net assets

14

2022

2023

2023

5,110
2,888
*1 5,300
1,340
131
2,417
4,725
896
78
368
2,269
25,5252,411
46*1 9,400
1,930
133
740
1,882
983
98
314
1,807
19,74718,060347
70,396
14,454997
5,544
14,098
7,366
736
2,356
13,537
147,890

3,270
377
227
778
32
4,685
30,211

3,950
460
848
810
27
6,097
25,84529,581
3,448
6,354
6,073
208
45,664
193,5548,932
462
26,820(12)
36,202

8,942
472
32,916(13)
42,31866,973
3,539
246,509(101)
316,921

2,261

2,312

17,319

2,169
94
4,526
392
41,121
71,333

2,570
20
4,903
401
47,62373,46819,251150
36,7203,008
356,648550,203

TOWA CORPORATION

Consolidated Income Statements(Years end March 31,2022 and 2023)
Thousands of
U.S. dollars

Millions of yen
Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating profit (loss)
Non–operating income
Interest income
Dividend income
Rental income from non–current assets
Foreign exchange gains
Subsidy income
Incentive income
Miscellaneous income
Non–operating income
Non–operating expenses
Interest expenses
Depreciation of assets for rent
Foreign exchange losses
Miscellaneous losses
Non–operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non–current assets
Gain on sale of investment securities
Extraordinary income
Extraordinary losses
Loss on sale of non–current assets
Loss on retirement of non–current assets
Impairment losses
Extraordinary losses
Profit (loss) before income taxes
Income taxes–current
Income taxes–deferred
Income taxes
Profit (loss)
Profit (loss) attributable to non–controlling interests
Profit (loss) attributable to owners of parent

2022

2023

50,66632,01318,653*2 *3 7,148
11,50553,82235,01418,808*2 *3 8,771
10,037403,075
262,219
140,856
65,68975,167

27
49
43
34
43
29
96
325

42
87
54
–
51
–
114
349

318
654
408
–
383
–
854
2,618

52
26
–
28
106
11,724

70
29
55
25
180
10,206

526
222
414
190
1,352
76,433

0
–
0

3
–
3

*5 0
*6 26

*5 5
*6 17

47
74
11,695
3,167
376
3,544
8,151
21
8,129

–
23
10,183
2,314
516
2,830
7,352
5
7,346

38
134
–
172
76,263
17,332
3,869
21,20155,06243
55,019

*1

*4

15

11
34
45

2023

*1

*4

TOWA CORPORATION

Consolidated Statement of Comprehensive Income(Years end March 31, 2022 and 2023)
Thousands of
U.S. dollars

Millions of yen
2022
Profit (loss)
Other comprehensive income
Valuation difference on available–for–sale securities,
net of tax
Foreign currency translation adjustment, net of tax
Remeasurements of defined benefit plans, net of tax
Other comprehensive income
Comprehensive income(breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to non–controlling interests

16

2023

2023

8,151

7,352

55,062

66

50

382

1,806
(5)
*1 1,867
10,018403(74)*1 379
7,732

3,025
(561)
2,845
57,908

9,948

7,723

57,84070

867

TOWA CORPORATION

Consolidated Statement of Shareholders’ Equity
Previous consolidated fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity

Balance at beginning of theperiodShare capital

Capital surplus

8,932

462

Retainedearnings

Treasuryshares

19,090Shareholders'equity(11)28,473

Changes during period
Dividends of surplus

(400)

(400)

Profit (loss) attributable toowners of parent

8,129

8,129

Purchase of treasury shares

(1)

(1)

Net changes in items otherthan shareholders' equity
Total changes during period

–

–

7,729

(1)

7,728

Balance at end of the period

8,932

462

26,820(12)

36,202

Valuation and translation adjustments
Valuationdifferenceonavailable–
for–salesecurities
Balance at beginning of theperiod2,195

Foreign Remeasurem Valuation
currency
ents ofandtranslation
definedtranslation
adjustment benefit plans adjustments
411

100

2,707

Non–
controllinginterests

Net assets

322

31,503

Changes during period
Dividends of surplus(400)

Profit (loss) attributable toowners of parent

8,129

Purchase of treasury shares(1)

Net changes in items otherthan shareholders' equity

66

1,758

(5)

1,818

70

1,888

Total changes during period

66

1,758

(5)

1,818

70

9,617

Balance at end of the period

2,261

2,169

94

4,526

392

41,121

17

TOWA CORPORATION

Consolidated Statement of Shareholders’ Equity
Current consolidated fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity

Balance at beginning of theperiodShare capital

Capital surplus

8,932

462

10

10

Retainedearnings

Treasuryshares26,820Shareholders'equity(12)

36,202

Changes during period
Issuance of new shares

20

Dividends of surplus(1,250)(1,250)

Profit (loss) attributable toowners of parent

7,346

7,346

Purchase of treasury shares0

Net changes in items otherthan shareholders' equity
Total changes during period

10

10

6,096

0

6,116

Balance at end of the period

8,942

472

32,916(13)

42,318Valuation and translation adjustments
Valuationdifferenceonavailable–
for–salesecurities
Balance at beginning of theperiod2,261

Non–
Foreign Remeasurem Valuation
controllingcurrency
ents ofandinterests
translation
definedtranslation
adjustment benefit plans adjustments
2,169

94

4,526

392

Net assets

41,121

Changes during period
Issuance of new shares

20

Dividends of surplus(1,250)

Profit (loss) attributable toowners of parent

7,346

Purchase of treasury shares(0)

Net changes in items otherthan shareholders' equity

50

400

(74)

376

8

385

Total changes during period

50

400

(74)

376

8

6,501

Balance at end of the period

2,312

2,570

20

4,903

401

47,62318

TOWA CORPORATION

Consolidated Statement of Shareholders’ Equity
Current consolidated fiscal year ended March 31, 2023
(Thousands of U.S. dollars)
Shareholders' equity

Balance at beginning of theperiodShare capital

Capital surplus

66,896

3,462

77

77

Retainedearnings

Treasuryshares200,854

Shareholders'equity(95)

271,117

Changes during period
Issuance of new shares

155

Dividends of surplus(9,364)(9,364)

Profit (loss) attributable toowners of parent

55,01955,019Purchase of treasury shares

(5)

(5)

Net changes in items otherthan shareholders' equity
Total changes during period

77

77

45,655(5)45,804

Balance at end of the period

66,973

3,539

246,509(101)

316,921

Valuation and translation adjustments
Valuationdifferenceonavailable–
for–salesecurities
Balance at beginning of theperiod16,937

Non–
Foreign Remeasurem Valuation
controllingcurrency
ents ofandinterests
translation
definedtranslation
adjustment benefit plans adjustments
16,250711

33,8992,940

Net assets

307,956

Changes during period
Issuance of new shares

155

Dividends of surplus(9,364)

Profit (loss) attributable toowners of parent

55,019Purchase of treasury shares(5)

Net changes in items otherthan shareholders' equity

382

3,001

(561)

2,822

67

2,889

Total changes during period

382

3,001

(561)

2,822

67

48,693

Balance at end of the period

17,31919,251150

36,7203,008

356,648

19

TOWA CORPORATION

Consolidated Statement of Cash Flows(Years end March 31,2022 and 2023)
Thousands of
U.S. dollars

Millions of yen
2022
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for product warranties
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in trade payables
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sale of investment securities
Payments of other investments
Purchase of property, plant and equipment and intangible assets
Proceeds from sale of property, plant and equipment and intangible assets
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short–term borrowings
Proceeds from long–term borrowings
Repayments of long–term borrowings
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning period
Cash and cash equivalents at end of period

20

2023

2023

11,695
1,949
14
(0)
187

10,183
2,498
116
0
82

76,26318,709
874
7
618

29

18

140

(72)
149
(77)
52
52
527
(8,494)
(59)
1,417
533
161
8,067
77
(53)
(1,704)
15
6,403

(67)
(54)
(129)
70
(86)
(3,918)3,373
89(5,356)
(322)
305
6,803
128
(69)
(4,044)
12
2,831

(508)
(410)
(972)
526
(644)
(29,342)
25,267667(40,117)(2,415)2,287
50,950966(520)(30,287)
94
21,203(1,543)
1,837
141
(33)
(5,272)
1(1,727)(3)(6,600)

(248)
290
–
(4)
(2,731)14–(66)(2,746)(1,857)
2,177
–
(34)
(20,455)
105
–
(499)
(20,565)

3,800–(1,340)
(1)
(400)
(133)
1,925
253
1,982
10,268*1 12,250

4,100
3,000
(1,730)(0)(1,250)
(156)
3,962
132
4,180
12,250*1 16,430

30,705
22,467(12,956)(5)(9,364)(1,173)29,673993
31,304
91,743123,047

Notes to Consolidated Financial Statements
Note 1 – Significant Matters Constituting the Basis of Preparation of Consolidated Financial Statements

1. Scope of consolidation(1) Number of consolidated subsidiaries: 18
Names of consolidated subsidiaries･BANDICK CORPORATION･TOWA LASERFRONT CORPORATION･TOWATEC Co., Ltd.
･TOWAM Sdn. Bhd.
･TOWA (Suzhou) Co., Ltd.
･TOWA (Nantong) Co., Ltd.
･TOWA TOOL Sdn. Bhd.
･TOWA Fine Co., Ltd.
･TOWA R&D Suzhou Co., Ltd.
･TOWA Korea Co., Ltd.
･TOWA Asia–Pacific Pte. Ltd.
･TOWA (Shanghai) Co., Ltd.
･TOWA Taiwan Co., Ltd.
･TOWA Semiconductor Equipment Philippines Corp.
･TOWA THAI COMPANY LIMITED･TOWA USA Corporation･TOWA Europe GmbH･TOWA Europe B.V.
Of the above, TOWA TOOL Sdn. Bhd. is included in the scope of consolidation because it became asubsidiary through the acquisition of shares during the current consolidated fiscal year.
(2) There are no non–consolidated subsidiaries.

2. Application of the equity method(1) There are no affiliated companies accounted for by the equity method.
(2) There are no companies not accounted for by the equity method.

3. Fiscal year, etc. of consolidated subsidiaries

Among the consolidated subsidiaries, TOWA (Suzhou) Co., Ltd., TOWA (Nantong) Co., Ltd., TOWA R&D
Suzhou Co., Ltd., and TOWA (Shanghai) Co., Ltd. have a fiscal year end of December 31.
In preparing the consolidated financial statements, the financial statements of these companies are
based on the provisional settlement of accounts as of the consolidated closing date.

4. Accounting Policies(1) Valuation standards and methods for significant assets
1) Securities
Other securities
Securities other than stocks without market priceMarket value method (valuation differences are recorded as a component of shareholders' equity.
Cost of securities sold is determined by the moving–average method.)
Stocks without market price
Cost method based on the moving–average method
2) Inventory(i) ProductMainly stated at cost determined by the specific identification method (balance sheet value iscalculated by writing down the book value of assets based on decreased profitability).
(ii) Work in process
Mainly stated at cost determined by the specific identification method (balance sheet value iscalculated by writing down the book value of assets based on decreased profitability).
(iii) Raw materials
Mainly stated at cost determined by the moving–average method (balance sheet value is calculated
by writing down the book value of assets based on decreased profitability).
21

(iv) Supplies
Mainly stated at last purchase cost (balance sheet value is calculated by writing down the book valueof assets based on decreased profitability)(2) Depreciation method for significant depreciable assets
1) Property, plant and equipment (excluding lease assets)
The Company and its domestic consolidated subsidiaries use the declining–balance method, while
overseas consolidated subsidiaries use the straight–line method.
However, buildings (excluding building fixtures) acquired on or after April 1, 1998 and building fixturesand structures acquired on or after April 1, 2016 are depreciated using the straight–line method.
The estimated useful lives are as follows.
Buildings and structures
2–50 years
Machinery, equipment and vehicles 2–10 years
2) Intangible fixed assets (excluding lease assets)
The Company and its consolidated subsidiaries adopt the straight–line method.
Software for internal use is based on the period during which it can be used internally (5 years).
3) Leased assets
The Company adopts the straight–line method with the lease period as the useful life and residual value
as 0.
(3) Accounting standards for significant allowances
1) Allowance for doubtful accounts
To prepare for losses due to bad debt, the allowance for doubtful accounts is provided at an estimateduncollectible amount based on the past credit loss ratio for general receivables and considering thecollectability of specific receivables.
2) Provision for bonuses
The Company and some of its consolidated subsidiaries provide for the payment of bonuses to employees
based on the estimated amount to be paid.
3) Provision for directors' bonuses
The Company and some of its consolidated subsidiaries provide for directors' bonuses based on theestimated amount to be paid.
4) Reserve for product warranty
The Company and some of its consolidated subsidiaries provide for repair costs related to products during
the warranty period based on estimated repair costs corresponding to sales based on past performance. In
addition, the estimated expense is recorded for specific cases that can be estimated individually.
(4) Accounting treatment for retirement benefits
1) Period attribution of projected retirement benefits
In calculating retirement benefit obligations, the projected retirement benefits are attributed to theperiod up to the end of the current consolidated fiscal year based on the benefit formula basis.
2) Accounting method for actuarial gains and losses and past service costs
Past service cost is amortized by the straight–line method over a fixed period (mainly 10 years) within the
average remaining service period of employees at the time of occurrence.
Actuarial gains and losses are amortized in the year following the year in which they arise using thedeclining–balance method over a fixed period (mainly 10 years) within the average remaining service periodof employees at the time of occurrence.
3) Accounting method for unrecognized actuarial gains and losses and unrecognized past service cost
Unrecognized actuarial gains or losses and unrecognized past service cost are recorded asremeasurements of defined benefit plans in accumulated other comprehensive income under net assets, after
adjusting for tax effects.
4) Adoption of simplified method in small companies, etc.
Certain consolidated subsidiaries apply the simplified method to the calculation of net defined benefit
liability and net defined benefit expense by setting the retirement benefit obligation at the amount requiredfor voluntary retirement at the end of the fiscal year.
(5) Accounting standards for recording significant revenues and expenses
The details of major performance obligations in major businesses related to revenue arising from22contracts with customers of the Company and its consolidated subsidiaries and the normal point in time whensuch performance obligations are satisfied (normal point in time when revenue is recognized) are as follows.
1) Semiconductor Manufacturing Equipment
For sale revenue of products that require installation at the time of delivery to the customer, revenue isrecognized mainly at the time of completion of installation for products, and for products that do not require
installation, revenue is recognized at the time of delivery or acceptance because it is determined that thecustomer will gain control over the products and the performance obligations are deemed to be fulfilled.
Revenue from services such as warranty, repair, maintenance and relocation related to products is
recognized when the performance obligations are deemed to be satisfied at the completion of the services.
Revenue is recognized at the time of shipment if it meets the requirements of Paragraph 98 of the"Guidance on Accounting Standards for Revenue Recognition."
2) Fine Plastic Molded Products
With respect to sales of products, since the period from the time of shipment to the time when controlof the product is transferred to the customer is reasonably short, revenue is recognized at the time of shipment
by applying the alternative treatment prescribed in Paragraph 98 of the "Guidance on Accounting Standard for
Revenue Recognition."
3) Laser Processing Equipment
Revenue from the sale of products is recognized at the time of delivery or acceptance because it isdetermined that the customer has gained control over the products and the performance obligations are
satisfied.
Revenue from services such as warranty, repair, maintenance and relocation related to products is
recognized at the completion of the services when the performance obligations are deemed to be satisfied.
Revenue is recognized at the time of shipment if it meets the requirements of Paragraph 98 of the"Guidance on Accounting Standards for Revenue Recognition."(6) Standards for translating significant assets or liabilities denominated in foreign currencies into
Japanese currency
Monetary claims and liabilities denominated in foreign currencies are translated into Japanese yen at the
spot exchange rates prevailing at the balance sheet date, and any translation differences are recorded as gainor loss. Assets and liabilities of foreign subsidiaries are translated into Japanese yen at the spot exchange rate
as of the consolidated balance sheet date, while revenues and expenses are translated into Japanese yen at
the average exchange rate during the period. Translation differences are included in foreign currencytranslation adjustments and non–controlling interests under net assets.
The translation of the Japanese yen amounts into U.S. dollars is included solely for the convenience of thereader, using the approximate exchange rate on March 31, 2023, which was 133.53 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.
(7) Amortization method and amortization period of goodwill
Goodwill is amortized by the straight–line method over 5-8 years.
(8) Cash and cash equivalent on the consolidated statements of cash flows
Cash and cash equivalents in the consolidated statements of cash flows consist of cash on hand, deposits
that can be withdrawn at any time and short–term investments that are readily convertible into cash and thatare subject to insignificant risk of changes in value and mature or become due within 3 months of the date ofacquisition.
(9) Other significant matters for preparing the consolidated financial statements
1) Accounting treatment of consumption tax, etc.
Accounting for consumption taxes and local consumption taxes is based on the tax exclusion method.
Non–deductible consumption taxes and local consumption taxes are charged to income for the current
consolidated fiscal year.
2) Application of the consolidated taxation system
Effective from the current consolidated fiscal year, the company has discontinued the application of theconsolidated tax payment system.

23

Note 2 – Significant Accounting Estimates

Previous consolidated fiscal year ended March 31, 2022
Recoverability of deferred tax assets(1) Amount recorded in the consolidated financial statements for the current fiscal year: 261 million yen(2) Information on the contents of significant accounting estimates pertaining to the identified items
The Group reviews the recoverability of deferred tax assets every fiscal year. The recoverable amount of
the Group's deferred tax assets is highly dependent on projections of future taxable income, which may varydepending on the future business environment, changes in the Group's business activities and other factors.
In assessing the recoverability of deferred tax assets at the end of the consolidated fiscal year, the Company
comprehensively takes into account business results for the past 3 years and the consolidated fiscal year aswell as the future business plans, and the Company and its consolidated subsidiaries are classified according
to the requirements set forth in Accounting Standards Board of Japan Guidance No. 26, "Implementation
Guidance on Recoverability of Deferred Tax Assets." Based on past results and future business plans, theCompany estimates taxable income over a period of 5 years or less in the future and schedules the timing of
the reversal of temporary differences to determine the recoverability of deferred tax assets.
Estimates of future taxable income and the scheduling of future deductible temporary differences are
considered to be significant assumptions used in estimating the recoverability of deferred tax assets. The futurebusiness plan used in estimating taxable income is based on an operating income margin that takes into
account historical results and estimates of future sales that take into account sales strategies.
If such estimates need to be reviewed due to changes in uncertain economic conditions in the future, theamount of deferred tax assets and deferred income taxes to be recognized in the consolidated financial
statements for the following fiscal year and thereafter may be affected.
Intangible assets and goodwill acquired through business combination(1) Amount recorded in the consolidated financial statements for the current consolidated fiscal year
In the current consolidated fiscal year, the following intangible assets and goodwill related to TOWA Fine
Co., Ltd. acquired in March 2022 are recorded.
Millions of yen
Goodwill

490

Technology–related intangible assets

54

Customer–related intangible assets

57

Total

602

(2) Details of the identified significant accounting estimates
Intangible assets acquired through business combinations are recognized at fair value at the date ofacquisition and are measured using the income approach method, which discounts estimated future cash flows
based on royalty rates and decreasing rates of existing customers to their present value. Goodwill acquired asa result of the business combination is recorded at the difference between the acquisition cost and the fairvalue of identifiable assets and liabilities of TOWA Fine Co., Ltd. as of the date of the business combination, as
the excess earning power is expected from future business development of the company.
Assumptions used in these measurements, such as estimated future cash flows, royalty rates, rates ofdecline in existing customers, and discount rates, are determined based on management's best estimates.
However, these assumptions may be affected by changes in uncertain economic conditions in the future. If it
becomes necessary to review these assumptions, the amounts of intangible assets and goodwill acquired as aresult of business combination in the consolidated financial statements for the following fiscal year may besignificantly affected.

24Current consolidated fiscal year ended March 31, 2023
Recoverability of deferred tax assets(1) Amount recorded in the consolidated financial statements for the current fiscal year: 373 million yen(2,797 thousand U.S. dollars)(2) Information on the contents of significant accounting estimates pertaining to the identified items
The Group reviews the recoverability of deferred tax assets every fiscal year. The recoverable amount of
the Group's deferred tax assets is highly dependent on projections of future taxable income, which may varydepending on the future business environment, changes in the Group's business activities and other factors.
In assessing the recoverability of deferred tax assets at the end of the consolidated fiscal year, the Company
comprehensively takes into account business results for the past 3 years and the consolidated fiscal year aswell as the future business plans, and the Company and its consolidated subsidiaries are classified according
to the requirements set forth in Accounting Standards Board of Japan Guidance No. 26, "Implementation
Guidance on Recoverability of Deferred Tax Assets." Based on past results and future business plans, theCompany estimates taxable income over a period of 5 years or less in the future and schedules the timing of
the reversal of temporary differences to determine the recoverability of deferred tax assets.
Estimates of future taxable income and the scheduling of future deductible temporary differences are
considered to be significant assumptions used in estimating the recoverability of deferred tax assets. The futurebusiness plan used in estimating taxable income is based on an operating income margin that takes into
account historical results and estimates of future sales that take into account sales strategies.
If such estimates need to be reviewed due to changes in uncertain economic conditions in the future, theamount of deferred tax assets and deferred income taxes to be recognized in the consolidated financial
statements for the following fiscal year and thereafter may be affected.
Valuation of inventories(1) Amounts recorded in the consolidated financial statements for the current consolidated fiscal year:
15,407 million yen (115,382 thousand U.S. dollars)(2) Information on significant accounting estimates related to identified items
The values of the Group's inventories are calculated by writing down the book value of assets that
decreased in profitability. To reflect the fact that profitability has declined, the Group values inventories withacquisition cost or net selling value at the end of the consolidated fiscal year, whichever is lower. Inventories
that have fallen out of the normal operating cycle process, with those that have passed a certain period or
exceeded a certain turnover period as of the end of the fiscal year defined as slow-moving inventory, are valued
by regularly writing down their book value, except for those determined to have the potential for sale after
individually examining future sales forecasts based on past years' results and other factors. If the market
environment in which the Group operates deteriorates more than expected and factors such as demand
forecasts that affect the valuation of inventories, additional inventory write-downs may be required, and this
could have a significant impact on consolidated financial statements after the following consolidated fiscal year.

25

Note 3 – Change in Presentation Method

Consolidated Statements of Income“Commission expenses” under Non-operating expenses, which had been independently presented until
the previous consolidated fiscal year, are included in “Miscellaneous loss” under Non-operating expenses fromthe current consolidated fiscal year because they became insignificant in terms of amount.
As a result, 17 million yen presented as “Commission expenses” under Non-operating expenses in theprevious consolidated fiscal year has been reclassified as “Miscellaneous loss.”

Note 4 – Additional information

Restricted stock units
Following a resolution passed at the 44th Ordinary General Meeting of Shareholders held on June 29,2022, the Company has adopted a restricted stock plan for its directors (excluding directors who are membersof the Audit Committee and outside directors) to further promote value-sharing with shareholders.
The Company has also adopted a restricted stock plan for its executive officers.
Additionally, at a meeting held on July 28, 2022, the Board of Directors resolved to issue new shares todirectors and executive officers at the Company as restricted stock units, and payment was completed on
August 23, 2022.
Application of tax effect accounting for the transition from a consolidated tax payment system to a nonconsolidated tax payment system
Beginning from the current consolidated fiscal year, the Company and its domestic consolidated
subsidiaries have shifted to a non-consolidated tax payment system. Accordingly, as outlined in Paragraphs 33
and 69 of “Practical Solution on the Accounting and Disclosure under the Group Tax Sharing System” (PITF No.
42, August 12, 2021), deferred tax assets and deferred tax liabilities after the end of the previous consolidated
fiscal year have been recognized by applying the non-consolidated tax payment system from the current
consolidated fiscal year.

Note 5 – Consolidated Balance Sheets*1 The Company has entered into overdraft agreements and commitment line agreements with 6 banks withthe aim of raising funds more efficiently and stabilizing. The balance of unexecuted borrowings based onthese agreements at the end of the fiscal year is as follows.
Thousands of
U.S. dollars
2023

Millions of yen
2022

2023

Total of overdraft limit and commitment line
contracts

12,00014,500108,590

Outstanding borrowings

5,300

9,400

70,396

6,700

5,100

38,194

Net amount26

Note 6 – Consolidated Statements of Income*1 Inventory at the end of the period is the amount after write–down of book value due to a decline inprofitability, and the following inventory valuation loss is included in cost of sales.
Thousands of U.S.
Millions of yen
dollars
2022
2023
2023
370
286
2,143
*2 Major items and amounts of selling, general and administrative expenses are as follows.
Millions of yen
2022

2023

Provision for allowance for doubtful accounts
Salaries and allowances
Provision for bonuses
Provision for directors' bonuses
Retirement benefit expenses
Commission expenses

(0)
1,798
262
70
65
736

0
2,108
298
91
61
980

Thousands of
U.S. dollars
2023
7
15,792
2,236
685
464
7,341

*3 Total research and development expenses included in general and administrative expenses
Thousands of U.S.
Millions of yen
dollars
2022
2023
2023
585
914
6,851
The above amount includes expenses for INNOMS Promotion Department.
*4 Details of gain on sales of fixed assets are as follows:

10
0
0

0
–
–

Thousands of
U.S. dollars
2023
3
–
–

11

0

3

–
0

5
–

Thousands of
U.S. dollars
2023
38
–

0

5

38

Millions of yen
2022

2023

Machinery, equipment and vehicles
Other property, plant and equipment
SoftwareTotal*5 Details of loss on sales of fixed assets are as follows:
Millions of yen
2022
Machinery, equipment and vehicles
Other property, plant and equipment
Total

2023

*6 Details of loss on disposal of fixed assets are as follows:

Buildings and structures

17

3

Thousands of
U.S. dollars
2023
25

Machinery, equipment and vehicles
Other property, plant and equipment
Software

2
5
0

11
2
0

87
21
2

26

17

134

Millions of yen
2022

Total
27

2023

Note 7 – Consolidated Statements of Comprehensive Income*1 Reclassification adjustments and tax effects related to other comprehensive income
Thousands of
U.S. dollars

Millions of yen
2022

2023

2023

Valuation difference on available–for–sale securities:
Amount arising during the period

142

73

549

Reclassification adjustment

(34)

–

–

Before tax effect adjustment

108

73

549

Tax benefit

(41)

(22)

(168)

Valuation difference on available–for–sale securities

66

50

382

1,806

403

3,025

1,806

403

3,025

Amount arising during the period

29

(69)

(520)

Reclassification adjustment

(39)

(38)

(290)

(10)

(108)

(811)

Tax benefit

4

33

249

Remeasurements of defined benefit plans

(5)

(74)

(561)

1,867

379

2,845

Foreign currency translation adjustments:
Amount arising during the period
Foreign currency translation adjustments
Remeasurements of retirement benefits:

Before tax effect adjustment

Total other comprehensive income

28Note 8 – Consolidated Statement of Changes in Net Assets
Previous consolidated fiscal year ended March 31, 2022
1. Type and total number and types of issued stocks and type and number of treasury stocks(Share)Number of sharesat the beginning of
the consolidated
fiscal year

Increase in numberof shares during
the consolidated
fiscal year

Decrease in
number of shares
duringthe consolidated
fiscal year

25,021,832––

25,021,832

25,021,832––

25,021,832

Common stock (Note)

12,806415–

13,221

Total

12,806415–

13,221

Number of sharesat the end of
the consolidated
fiscal year

Issued stock
Common stock
Total
Treasury stock(Note) The increase of 415 shares in the number of treasury stocks under common stocks is due to the purchase ofshares less than one unit.

2. Stock Acquisition Rights and Treasury Stock Acquisition Rights
There are no applicable matters.
3. Matters related to dividends(1) Dividends paid
(Resolution)
May 13, 2021
Board of directors

Type ofsharesTotal amount of dividends

Per share
Dividend amountMillions of yen

Yen

Common
stock

400

16

Recorddate

Effective
date

March
31,2021June
30,2021(2) Dividends with record date within the current consolidated fiscal year, but with effective date in thefollowing consolidated fiscal year
(Resolution)
May 12, 2022
Board of directors

Type ofsharesCommonstock

Total amount of dividends
Millions of yen
1,250

29

Dividends
SourceRetainedearnings

Per share
Dividend
amountYen
50

Recorddate

Effective
date

March
31,2022

June
30,2022

Current consolidated fiscal year ended March 31, 2023
1. Type and total number and types of issued stocks and type and number of treasury stocks
Number of sharesat the beginning of
the consolidated
fiscal year

(Share)Increase in number Decrease in number Number of shares atof shares duringof shares during
the end of
the consolidated
the consolidated
the consolidated
fiscal year
fiscal year
fiscal year

Issued stock
Common stock (Note)

25,021,832

11,406–25,033,238

Total

25,021,832

11,406–25,033,238

Common stock (Note)

13,221376–

13,597

Total

13,221376–

13,597

Treasury stock(Note) The increase of 11,406 shares in the number of issued stocks under common stocks is attributable to thecapital increase associated with the issuance of new shares as restricted stock units. The increase of 376
shares in the number of treasury stocks under common stocks is due to the purchase of shares less than one
unit.

2. Stock Acquisition Rights and Treasury Stock Acquisition Rights
There are no applicable matters.
3. Matters related to dividends(1) Dividends paid
(Resolution)

Type ofsharesMay 12, 2022
Board of directors

Commonstock(Resolution)

Type ofsharesMay 12, 2022
Board of directors

Total amount of dividends

Per share
Dividend amountMillions of yen

Yen
1,250

50

Total amount of dividends

Per share
Dividend amountThousands of U.S. dollars

U.S. dollars

Common
stock

9,364

0.374

Recorddate

Effective
date

March
31,2022

June
30,2022

Recorddate

Effective
date

March
31,2022

June
30,2022(2) Dividends with record date within the current consolidated fiscal year, but with effective date in thefollowing consolidated fiscal year
(Resolution)
May 11, 2023
Board of directors(Resolution)
May 11, 2023
Board of directors

Type ofsharesCommonstock

Type ofsharesCommonstock

Total amount of dividends
Millions of yen
1,000

Total amount of dividends
Thousands of U.S. dollars
7,495
30

Dividends
SourcePer share
Dividend
amountYen

Recorddate

Effective
date

Retainedearnings

40

March
31,2023

June
8,2023

Dividends
SourcePer share
Dividend
amountU.S. dollars

Recorddate

Effective
date

Retainedearnings

0.3

March
31,2023

June
8,2023

Note 9 – Matters related to consolidated cash flow statements*1 Relationship between cash and cash equivalents at the end of the period and the amounts recorded in
the consolidated balance sheets
Thousands of
U.S. dollars
2023

Millions of yen
2022

2023

Cash and deposits

12,407

16,547

123,920

Time deposits with a term longer than 3 months

(157)

(116)

(873)

12,25016,430123,047

Cash and cash equivalents

Note 10 – Lease Transactions

Lessee1. Finance lease transactions

Finance leases that do not transfer ownership(1) Details of leased assets
Mainly office equipment, R & D equipment and OA equipment for the Group.
(2) Depreciation of leased assets
We adopt the accounting policy for this significant account as explained at "Note-1 4. Accounting Policies(2) Depreciation method for significant depreciable assets"
Impairment Loss
There is no impairment loss allocated to leased assets.

2. Operating lease transactions

Remaining lease payments related to non–cancelable operating leases
Thousands of
U.S. dollars
2023

Millions of yen
2022

2023

Within 1 year

1

1

9

More than 1 year

1

0

1

Total
2
1
10
(Note) Lease transactions to which IFRS 16 is applied and assets and liabilities are recorded in the consolidatedbalance sheets are not included.

31

Note 11 – Financial Instruments

1. Status of financial instruments(1) Policy on financial instruments
The Group invests temporary surplus funds only in short–term deposits, etc. With respect to financing,
the Company mainly procures necessary funds through bank loans in light of capital investment plans for thesemiconductor manufacturing equipment business.
The Company has entered into overdraft agreements and commitment line agreements with 6 banks to
improve the efficiency and stability of fund procurement.
(2) Details and risks of financial instruments
Trade receivables such as notes receivable, accounts receivable and electronically recorded monetaryclaims are exposed to customers' credit risks. Additionally, trade receivables denominated in foreign
currencies arising from our global business operations are exposed to foreign exchange fluctuation risks.
Investment securities are mainly stocks related to business partners and are exposed to market pricefluctuation risks.
Notes and accounts payable and electronically recorded obligations, which are trade payables, are mostly
due within 4 months. Some items denominated in foreign currencies are exposed to foreign exchange
fluctuation risks.
Borrowings are procured for capital investment and working capital, etc. Since they are mainly fixed–rateborrowings, the risk of interest rate fluctuations is minimal. There is also a risk that certain borrowings may besubject to requests for early repayment due to breaches of financial covenants.
(3) Risk management system for financial instruments
1) Management of credit risks (risks related to non–performance of contracts by business partners)
The Company conducts credit investigations at the beginning of transactions and periodically reviews
credit limits for notes receivable, accounts receivable and electronically recorded monetary claims, which aretrade receivables, in accordance with the Rules for Operating Activities. Consolidated subsidiaries are also
managed in the same manner as the Company.
2) Management of market risks (risks of fluctuations in foreign exchange rates and interest rates)
The Company borrows at fixed interest rates in order to control the risk of fluctuations in interest rates
on long–term borrowings.
With regard to investment securities, the Company periodically monitors the market value and financial
conditions of issuers (business partners) and reviews the status of holdings in consideration of market
conditions and relationships with business partners.
Consolidated subsidiaries are also managed in the same manner as the Company.
3) Management of liquidity risk related to fund procurement (risk of not being able to make payments on
the due date)
The Finance Department of the Company prepares and updates cash management plans in a timely
manner based on reports from each department, and manages liquidity risks by maintaining liquidity on hand,
etc. Consolidated subsidiaries are also managed in the same manner as the Company.
(4) Supplementary explanation regarding the fair value, etc. of financial instrument
As fluctuation factors are incorporated in the calculation of fair values of financial instruments, thesevalues may fluctuate if different assumptions, etc. are adopted.

32

2. Fair value of financial instruments

The amount recorded on the consolidated balance sheet, fair value and the difference between them are
as follows.
Previous consolidated fiscal year ended March 31, 2022
Amount recorded in the
consolidated balance sheet
Investment securities(Millions of yen)
Market Value

Difference

3,828

3,828

–

Total Assets

3,828

3,828

–

Long–term debt

4,610

4,600

(9)

Total Liabilities
4,610
4,600
(9)
(*1) Cash and deposits, notes and accounts receivable – trade, electronically recorded monetary claims, notes
and accounts payable – trade, electronically recorded obligations, short–term borrowings, and income taxes
payable are not stated because their fair values approximate their book values as they are settled in a shortperiod of time.
(*2) The stocks without market prices are not included in “Investment securities”. The amount of such financial
instruments recorded in the consolidated balance sheets are as follows.
Previous consolidated fiscal year
Category
Millions of yen
Unlisted stock28

Current consolidated fiscal year ended March 31, 2023
Amount recorded in the
consolidated balance sheet
Investment securities(Millions of yen)
Market Value

Difference

3,901

3,901

–

Total Assets

3,901

3,901

–

Long–term debt

5,880

5,868

(11)

Total Liabilities

5,880

5,868

(11)
(Thousands of U.S. dollars)

Amount recorded in the
consolidated balance sheet
Investment securities

Market Value

Difference

29,21829,218–

Total Assets

29,21829,218–

Long–term debt

44,03543,945(90)

Total Liabilities
44,03543,945(90)(*1) Cash and deposits, notes and accounts receivable – trade, electronically recorded monetary claims, notes
and accounts payable – trade, electronically recorded obligations, short–term borrowings, and income taxes
payable are not stated because their fair values approximate their book values as they are settled in a shortperiod of time.
(*2) The stocks without market prices are not included in “Investment securities”. The amount of such financial
instruments recorded in the consolidated balance sheets are as follows.
Current consolidated fiscal year
Category
Millions of yen
Unlisted stock

Category

28
Current consolidated fiscal year
Thousands of U.S. dollars

Unlisted stock

212
33

(Note)1. Scheduled redemption amount of monetary claims after the consolidated closing datePrevious consolidated fiscal year ended March 31, 2022

(Millions of yen)
5 to 10 years Over 10 years

Within 1 year

1 to 5 years

Cash and deposits

12,407–––

Notes receivable

433

–

–

–

Accounts receivable

11,109

–

–

–

287

–

–

–

24,239–––

Electronically recorded monetary claims
Total
Current consolidated fiscal year ended March 31, 2023

(Millions of yen)
5 to 10 years Over 10 years

Within 1 year

1 to 5 years

Cash and deposits

16,547–––

Notes receivable

73

–

–

–

Accounts receivable

11,693–––

Electronically recorded monetary claims

1,201

–

–

–

29,515

–

–

–

Total

(Thousands of U.S. dollars)
5 to 10 years Over 10 years

Within 1 year

1 to 5 years

Cash and deposits

123,920–––

Notes receivable

547

–

–

–

Accounts receivable

87,574–––

Electronically recorded monetary claims

9,001

–

–

–

221,041

–

–

–

Total

(Note)2. Amount of long–term loans payable to be repaid after the consolidated closing datePrevious consolidated fiscal year ended March 31, 2022
1 to 5 years

5 to 10 years

1,340

3,270

–

–

1,340

3,270

–

–

Long–term debt
Total
Current consolidated fiscal year ended March 31, 2023

Long–term debt
Total

Long–term debt
Total

(Millions of yen)Over 10 years

Within 1 year

(Millions of yen)
5 to 10 years Over 10 years

Within 1 year

1 to 5 years

1,930

3,950

–

–

1,930

3,950

–

–

Within 1 year

1 to 5 years

14,45429,581––

14,45429,581––(Thousands of U.S. dollars)
5 to 10 years Over 10 years(Note)3. Items related to the breakdown of the fair value of financial instruments by level
The fair value of financial instruments is classified into the following 3 levels according to the observability and34

importance of inputs to the calculation of fair value.
Level 1 fair value: Calculated based on the fair value of assets or liabilities subject to market value calculationthat are formed in active markets
Level 2 fair value: Calculated by using observable inputs other than Level 1 inputs
Level 3 fair value: Calculated using unobservable inputs
If multiple inputs that significantly affect the calculation of market value are used, the market value is classified
at the lowest priority level in the calculation of market value among the levels to which each of those inputs belongs.
(1) Financial instruments recorded on the consolidated balance sheets at fair value
Previous consolidated fiscal year ended March 31, 2022
Category
Investment securities
SharesTotal assets(Millions of yen)

Fair value
Level 1

Level 2

3,828
3,828

Level 3
–
–

Total
–
–

Current consolidated fiscal year ended March 31, 2023
Category
Investment securities
SharesTotal assets

3,828
3,828

(Millions of yen)
Fair value

Level 1

Level 2

3,901
3,901

Level 3
–
–

Total
–
–

3,901
3,901

(Thousands of U.S. dollars)
Category
Investment securities
SharesTotal assets

Fair value
Level 1

Level 2

29,21829,21835

Level 3
–
–

Total
–
–

29,21829,218

(2) Financial instruments other than those recorded on the consolidated balance sheets at fair value
Previous consolidated fiscal year ended March 31, 2022
(Millions of yen)
Fair value
Category
Level 1
Level 2
Level 3
Total
Long–term borrowings (including
–
4,600
–
4,600
ones that are due within 1 year)
Total liabilities
–
4,600
–
4,600
Current consolidated fiscal year ended March 31, 2023

(Millions of yen)
Fair value

Category

Level 1

Long–term borrowings (includingones that are due within 1 year)
Total liabilities

Level 2

Level 3

Total

–

5,868

–

5,868

–

5,868

–

5,868

(Thousands of U.S. dollars)
Fair value

Category

Level 1
Level 2
Level 3
Total
Long–term borrowings (including–
43,945–43,945ones that are due within 1 year)
Total liabilities–
43,945–43,945(Note) Explanation of valuation techniques used in the calculation of fair value and inputs related to the calculationof fair value
Investment securities
Listed shares are valued using quoted prices. Since listed shares are traded in active markets, their fair value
is classified as Level 1.
Long–term borrowings (including ones that are due within 1 year)
The fair value of long–term borrowings is calculated by discounting the total amount of principal and interest
at an interest rate that takes into account the remaining period of borrowings and credit risk. The fair value isclassified as Level 2.

Note 12 – Securities

1. Other securities

Previous consolidated fiscal year ended March 31, 2022
Type

Amountrecorded in the
consolidatedbalance sheet
3,828(Millions of yen)
Acquisition cost

Difference(1) Shares
658
3,169
(2) Bonds(i) Government bonds,–––
Securities whosemunicipal bonds, etc.
carrying amountexceeds their(ii) Corporate bonds–––
acquisition cost(iii) Others–––(3) Others–––
Subtotal
3,828
658
3,169
(1) Shares–––(2) Bonds
Securities whose(i) Government bonds,–––
carrying amountmunicipal bonds, etc.
does not exceed(ii) Corporate bonds–––
their acquisition(iii) Others
–
–
–
cost
(3) Others–––
Subtotal
–
–
–
Total
3,828
658
3,169
(Note) Unlisted shares (28 million yen on consolidated balance sheet) are not included in the above table.
36Current consolidated fiscal year ended March 31, 2023
Type

Securities whosecarrying amountexceeds theiracquisition cost

Securities whosecarrying amount
does not exceed
their acquisition
cost(1) Shares(2) Bonds(i) Government bonds,
municipal bonds, etc.
(ii) Corporate bonds(iii) Others(3) Others
Subtotal(1) Shares(2) Bonds(i) Government bonds,
municipal bonds, etc.
(ii) Corporate bonds(iii) Others(3) Others
Subtotal
Total

Type

Amountrecorded in the
consolidatedbalance sheet
3,901(Millions of yen)
Acquisition cost

Difference

658

3,243

–

–

–

–
–
–
3,901
–

–
–
–
658
–

–
–
–
3,243
–

–

–

–

–
–
–
–
3,901

–
–
–
–
658

–
–
–
–
3,243

Amountrecorded in the
consolidatedbalance sheet
29,218(Thousands of U.S. dollars)
Acquisition cost

Difference(1) Shares
4,929
24,289(2) Bonds(i) Government bonds,–––
Securities whosemunicipal bonds, etc.
carrying amount(ii) Corporate bonds–––
exceeds theiracquisition cost(iii) Others–––(3) Others–––
Subtotal
29,218
4,929
24,289(1) Shares–––(2) Bonds
Securities whose(i) Government bonds,–––
carrying amountmunicipal bonds, etc.
does not exceed(ii) Corporate bonds–––
their acquisition(iii) Others
–
–
–
cost
(3) Others
–
–
–
–
–
–
Subtotal
Total
29,218
4,929
24,289(Note) Unlisted shares (28 million yen (212 thousand U.S. dollars) on consolidated balance sheet) are not includedin the above table.

2．Other securities sold

Previous consolidated fiscal year ended March 31, 2022
Type
SharesSale price(Millions of yen)
Total loss on sale

Total gain on sale
141

34

Current consolidated fiscal year ended March 31, 2023
There are no applicable matters.
37–

Note 13 – Retirement Benefits

1. Outline of the retirement benefit plan adopted

The Company and its consolidated subsidiaries have both funded and unfunded defined benefit plans anddefined contribution plans to prepare for employee retirement benefits.
With defined benefit corporate pension plan (all of which are funded plans), a lump–sum payment or
pension is paid based on the accumulated number of points granted according to the qualification and positionof the employee.
With lump–sum retirement allowance plan (all are which are unfunded plans), employees are entitled tolump–sum retirement benefits based on their salary and length of service. For the lump–sum retirement
benefit plans adopted by some consolidated subsidiaries, liabilities for retirement benefits and retirement
benefit expenses are calculated using the simplified method.

2. Defined benefit plans(1) Reconciliation between the beginning and ending balances of retirement benefit obligations
Thousands of
U.S. dollars
2023

Millions of yen
2022
Retirement benefit obligations at beginning of year

2023
2,600

2,676

20,046

Service cost

213

203

1,525

Interest expense

10

14

107

Actuarial gain or loss

(26)

(21)

(163)

Payment of retirement benefits

(141)

(201)

(1,511)

20

9

71

2,676

2,680

20,075

Other
Retirement benefit obligations at end of year
(Note) Includes plans to which the simplified method is applied.

(2) Reconciliation between the beginning and ending balances of plan assets
Thousands of
U.S. dollars
2023

Millions of yen
2022
Plan assets at beginning of year

2023
2,173

2,295

17,191

Expected return on investment

65

80

602

Actuarial gain or loss

6

(89)

(670)

Contributions from employer

129

122

916

Payment of retirement benefits

(79)

(157)

(1,179)Balance of plan assets at end of year

2,295

2,251

16,85938

(3) Reconciliation of the ending balances of retirement benefit obligations and pension assets and the net
defined benefit liability and net defined benefit asset recorded in the consolidated balance sheet
Thousands of
U.S. dollars
2023

Millions of yen
2022

2023

Retirement benefit obligations for funded plans

1,897

1,869

14,002

Plan assets(2,295)(2,251)(16,859)

(397)

(381)

(2,857)

778

810

6,073

381

429

3,216

778

810

6,073

(397)

(381)

(2,857)

381

429

3,216

Retirement benefit obligations for unfunded plans
Net liabilities and assets recorded in the consolidatedbalance sheets
Defined benefit liability
Defined benefit asset
Net liabilities and assets recorded in the consolidatedbalance sheets(Note) Includes plans to which the simplified method is applied.

(4) Retirement benefit expense and breakdown
Thousands of
U.S. dollars
2023

Millions of yen
2022

2023

Service cost

213

203

1,525

Interest expense

10

14

107

Expected return on investment

(65)

(80)

(602)

Actuarial differences expense

(22)

(21)

(163)

(16)

(16)

(127)

Prior service cost expense

Retirement benefit expenses for defined benefit plans
118
98
740
(Note) Retirement benefit expenses of consolidated subsidiaries that adopted the simplified method are mainly
recorded as service cost.

(5) Remeasurements of retirement benefits
The breakdown of items recorded as remeasurement of defined benefit plans is follows (before tax effects).
Millions of yen
2022
Prior service cost
Actuarial difference

2023
16
(6)
10

Total

39

16
91
108

Thousands of
U.S. dollars
2023
127
683
811

(6) Accumulated remeasurements of defined benefit plans
The breakdown of items recorded in accumulated remeasurements of defined benefit plans is as follows (before
tax effects).
Thousands ofMillions of yen
U.S. dollars
2022
2023
2023
Unrecognized prior service cost
83
66
499
Unrecognized actuarial gain or loss
57
(34)
(255)
Total
140
32
244
(7) Matters concerning plan assets(i) Major components of plan assets
The ratio of each major category to the total plan assets is as follows.

Bond
SharesLife insurance general account
Other
Total

2022
35%
32%
17%
16%
100%

2023
37%
31%
18%
14%
100%

(ii) Method of setting expected long–term rate of return
To determine the expected long–term rate of return on plan assets, the Company takes into account thecurrent and expected allocation of plan assets and the current and expected long–term rate of return on thevarious assets that make up the plan assets.
(8) Actuarial calculation basis
Basis of major actuarial calculations
2022
2022
Discount rate
Mainly 0.172%
Mainly 0.341%
Expected long–term rate of return
3.00%
3.50%
Expected rate of salary increase (Note)
Mainly 7.1%
Mainly 7.1%
(Note) The expected rate of salary increase is the rate of expected increase of points under the point system.

3．Defined contribution plan

The Group's required contributions to the defined contribution plan were 63 million yen for the previous
consolidated fiscal year and 85 million yen (639 thousand U.S. dollars) for the current consolidated fiscal year.

40Note 14 – Tax effect accounting

1. Breakdown of deferred tax assets and deferred tax liabilities by major causes
Millions of yen
2022
Deferred tax assets
Inventory valuation loss
Impairment loss
Provision for bonuses
Net defined benefit liability
PrototypeTax loss carryforwards (Note)
Other
Subtotal deferred tax assets
Subtotal of valuation allowance
Total deferred tax assets
Deferred tax liabilities
Valuation difference on available–for–sale securities
Undistributed earnings of foreign subsidiaries
Other
Total deferred tax liabilities
Net deferred tax assets

2023

Thousands of
U.S. dollars
2023

525
323
284
180
474
155
858
2,802
(802)
1,999

335
316
240
215
711
46
587
2,453
(636)
1,816

2,511
2,367
1,800
1,617
5,325
346
4,403
18,371(4,767)
13,604

(908)
(872)
(184)
(1,965)34(930)(1,144)(216)(2,291)(474)(6,970)(8,569)(1,622)(17,161)(3,557)(Change in Presentation Method)
The breakdown of the valuation allowance, which was presented separately in the previous consolidated fiscal
year, is not presented separately in the current consolidated fiscal year because the amount of loss carried forward
for tax purposes has become insignificant. Additionally, “Loss carried forward for tax purposes and the amount ofdeferred tax assets carried forward by the expiration date,” which was presented in the previous consolidated fiscal
year, is also omitted in the current consolidated fiscal year because the amount of loss carried forward for tax
purposes became immaterial.

2. Breakdown of major items that caused a significant difference between the statutory tax rateand effective tax rate after the application of tax effect accounting:
2022
2023
Statutory effective tax rate–
30.5%
(Adjusted)
Entertainment expenses and other items not permanently–
0.1%
deductible
Difference in tax rate with overseas subsidiaries–(3.2%)Per capita inhabitant tax, etc.
–
0.1%
Increase in valuation allowance–(1.6%)
Increase in deferred tax liabilities related to undistributed–
2.7%
earnings of overseas subsidiaries
Decrease in loss carried forward–
1.1%
Others
–(1.9%)
Actual effective tax rate after the application of tax effect–27.8%
accounting(Note) In the previous consolidated fiscal year, notes were omitted because the difference between statutory
tax rate and effective tax rate was less than 5/100 of the statutory tax rate.

41Note 15 – Revenue Recognition

1. Breakdown of revenue from contracts with customers
Previous consolidated fiscal year ended March 31, 2022

Japan
TaiwanChina
Other Asian countries
Americas
Other
Revenue arising fromcontracts with customers
Other income
Sales to external customers(Millions of yen)

Reportable segment
Semiconductor
Fine Plastic Molded Laser Processing
Manufacturing
Products Business Equipment Business
Equipment Business
2,553
1,591
1,600
9,352
–
46
22,520131374
10,612
–
206
1,397
–
–
279
–
–

Total
5,744
9,399
23,026
10,8191,397
279

46,715

1,723

2,227

50,666––––

46,715

1,723

2,227

50,666

Current consolidated fiscal year ended March 31, 2023

(Millions of yen)
Reportable segment

Japan
TaiwanChina
Other Asian countries
Americas
Other
Revenue arising fromcontracts with customers
Other income
Sales to external customers

Semiconductor
Fine Plastic Molded Laser Processing
Manufacturing
Products Business Equipment Business
Equipment Business
3,100
1,852
1,982
9,664
–
77
19,76898323
15,366
–
203
1,052
–
0
331
–
–

Total
6,935
9,741
20,19015,5701,052
331

49,285

1,950

2,586

53,822––––49,285

1,950

2,586

53,822(Thousands of U.S. dollars)
Reportable segment

Japan
TaiwanChina
Other Asian countries
Americas
Other
Revenue arising fromcontracts with customers
Other income
Sales to external customers

Semiconductor
Fine Plastic Molded Laser Processing
Manufacturing
Products Business Equipment Business
Equipment Business
23,222
13,871
14,844
72,379–578
148,048
738
2,423
115,082
–
1,526
7,879
–
1
2,485
–
–

Total
51,93872,957
151,208
116,608
7,880
2,485

369,095

14,60919,372403,075

–

–

–

–

369,095

14,60919,372403,07542

2. Information that serves as the basis for understanding revenue arising from customer contracts

Information that serves as the basis for understanding revenue is as presented in " Note 1 – Significant
Matters Constituting the Basis of Preparation of Consolidated Financial Statements 4. Accounting Policies (5)Accounting standards for recording significant revenues and expenses."

3. Relationship between fulfillment of performance obligations based on contracts with customers
and cash flows arising from such contracts, and information on the amount and timing of revenue
expected to be recognized in and after the next consolidated fiscal year from contracts withcustomers existing at the end of the current consolidated fiscal year
(1) Balance of contract assets and contract liabilities
Thousands of
U.S. dollars
2023

Millions of yen
2022
Receivables arising from contracts with customers(beginning balance)
Receivables arising from contracts with customers(ending balance)

2023
8,943

11,831

88,604

11,831

12,96897,122Contract liabilities (beginning balance)

1,745

4,725

35,387

Contract liabilities (ending balance)

4,725

1,882

14,908Contract liabilities are mainly consideration received from customers before revenue recognition and areincluded in advances received under current liabilities in the consolidated balance sheets.
(2) Transaction price allocated to the remaining performance obligations
The Company and its consolidated subsidiaries omit the transaction price allocated to the remaining
performance obligations because there are no significant contracts whose contract term is expected to exceed
1 year initially. There are no significant amounts of consideration arising from contracts with customers thatare not included in the transaction prices.

Note 16 – Segment Information

1. Overview of Reportable Segments

The Group's reportable segments are constituent units of the Group for which separate financial
information is available and which are subject to periodic review by the chief management decision–making
body in order to determine the allocation of management resources and evaluate business performance.
The Group has a sales and production control base at the Head Office. The Head Office and subsidiaries
work together to manufacture and sell mainly semiconductor manufacturing equipment, fine plastic molded
products and laser processing equipment, and to provide after–sales service for products. Accordingly, theGroup consists of segments by product and service, and has 3 reportable segments: Semiconductor
Manufacturing Equipment, Fine Plastic Molded Products, and Laser Processing Equipment.
The Semiconductor Manufacturing Equipment segment manufactures and sells precision molds forsemiconductor manufacturing, molding equipment, singulation equipment, etc., and provides after–sales
service for products. The Fine Plastic Molded Products segment manufactures and sells medical devices andother products. The Laser Processing Equipment segment is engaged in the manufacture and sale of laser
processing equipment and after–sales service.

2. Method of calculating sales, profit or loss, assets and other items by reportable segment
The accounting method for reported business segments is the same as that described in "(Significant
Matters Constituting the Basis of Preparation of Consolidated Financial Statements)," and the total amount ofsegment income is consistent with operating income in the consolidated statement of income.
43

3. Information on net sales, profit or loss, assets and other items by reportable segment
Previous consolidated fiscal year ended March 31, 2022
Semiconductor
Manufacturing
Equipment
Business

Fine Plastic
MoldedProducts
Business(Millions of yen)
Laser Processing
Equipment
Total
Business

Fine Plastic
MoldedProducts
Business(Millions of yen)
Laser Processing
Equipment
Total
Business

Sales(1) Sales to external customers
46,715
1,723
2,227
50,666(2) Inter–segment sales or––––transfers
Total
46,715
1,723
2,227
50,666
Segment profit (loss)
11,007
312
184
11,505
Segment assets
67,7272,158
1,446
71,333
Other Items
Depreciation expense
1,786
106
31
1,923
Amortization of goodwill
14
–
–
14
Increase in property, plant and
4,674
51
45
4,772
equipment and intangible assets(Note) The total amount of segment profit (loss) is consistent with operating income in the consolidated
statement of income.
Current consolidated fiscal year ended March 31, 2023

Sales
(1) Sales to external customers(2) Inter–segment sales ortransfers
Total
Segment profit (loss)
Segment assets
Other Items
Depreciation expense
Amortization of goodwill
Increase in property, plant andequipment and intangible assets

Semiconductor
Manufacturing
Equipment
Business
49,285

1,950

2,586

53,822––––49,285
9,402
69,352

1,950
387
2,368

2,586
246
1,747

53,822
10,03773,468

2,326
116

100
–

40
–

2,467
116

2,357

137

75

2,570

Semiconductor
Manufacturing
Equipment
Business

Fine Plastic
MoldedProducts
Business(Thousands of U.S. dollars)
Laser Processing
Equipment
Total
Business

Sales(1) Sales to external customers
369,095
14,60919,372403,075(2) Inter–segment sales or––––transfers
Total
369,095
14,60919,372403,075
Segment profit (loss)
70,413
2,905
1,849
75,167
Segment assets
519,379
17,73813,086550,203
Other Items
Depreciation expense
17,421756
301
18,478
Amortization of goodwill
874
–
–
874
Increase in property, plant and
17,657
1,031
565
19,253equipment and intangible assets(Note) The total amount of segment profit (loss) is consistent with operating income in the consolidated
statement of income.
44

[Related Information]
Previous consolidated fiscal year ended March 31, 2022
1. Information by product and service
Sales by product and service are omitted because the reportable segment of the Company is the same as
the classification by product and service.
2. Information by region(1) Sales(Millions of yen)
Other AsianJapan
TaiwanChina
Americas
OthersTotal
countries
5,744
9,399
23,026
10,8191,397
279
50,666(Note) The breakdown of areas in the below categories is as follows:(1) Other Asian countries: South Korea, Singapore, Thailand, Malaysia, Philippines, Indonesia, Vietnam, India, Turkey(2) Americas: United States, Canada, Mexico, Costa Rica, Brazil(3) Others: Germany, Malta, Hungary, Belgium, Italy, France, Denmark, Sweden, Switzerland(2) Property, plant and equipment(Millions of yen)
Other Asian Europe andJapan
Malaysia
China
Total
countries
Americas10,955
3,685
4,586
1,762
37
21,026(Note) The breakdown of areas in the below categories is as follows:(1) Other Asian countries: South Korea, Singapore, Taiwan, Philippines, Thailand(2) Europe and Americas: United States, Germany, Netherlands

Current consolidated fiscal year ended March 31, 2023
1. Information by product and service
Sales by product and service are omitted because the reportable segment of the Company is the same as
the classification by product and service.
2. Information by region(1) Sales(Millions of yen)
Other AsianJapan
TaiwanChina
Americas
OthersTotal
countries
6,935
9,741
20,19015,5701,052
331
53,822(Thousands of U.S. dollars)
Other AsianJapan
TaiwanChina
Americas
OthersTotal
countries
51,93872,957
151,208
116,608
7,880
2,485
403,075(Note) The breakdown of areas in the below categories is as follows:(1) Other Asian countries: South Korea, Singapore, Thailand, Malaysia, Philippines, Indonesia, Vietnam(2) Americas: United States, Canada, Mexico, Costa Rica, Brazil, El Salvador(3) Others: Germany, Malta, Czech Republic, Hungary, Belgium, Italy, Austria, France, Netherlands, Denmark, Switzerland(2) Property, plant and equipment
Japan
11,048

Malaysia
3,785(Millions of yen)
Other Asian Europe and
China
Total
countries
Americas
4,563
1,900
61
21,359(Thousands of U.S. dollars)
Other Asian Europe andJapan
Malaysia
China
Total
countries
Americas82,744
28,347
34,17914,234459
159,963(Note) The breakdown of areas in the below categories is as follows:(1) Other Asian countries: South Korea, Singapore, Taiwan, Philippines, Thailand(2) Europe and Americas: United States, Germany, Netherlands
45[Information on impairment loss of fixed assets by reportable segment]
Previous consolidated fiscal year ended March 31, 2022

(Millions of yen)

Semiconductor
Manufacturing
Equipment Business

Fine Plastic
Molded Products
Business

Laser Processing
Equipment Business

47

–

–

Impairment loss

Total
47

Current consolidated fiscal year ended March 31, 2023
There are no applicable matters.

[Information on amortization and unamortized balance of goodwill by reportable segment]
Previous consolidated fiscal year ended March 31, 2022

(Millions of yen)

Semiconductor
Manufacturing
Equipment Business

Fine Plastic
Molded Products
Business

Laser Processing
Equipment Business

14

–

–

14

562

–

–

562

Current period
amortization
Balance at end of
periodCurrent consolidated fiscal year ended March 31, 2023

Total

(Millions of yen)

Semiconductor
Manufacturing
Equipment Business

Fine Plastic
Molded Products
Business

Laser Processing
Equipment Business

116

–

–

116

457

–

–

457

Semiconductor
Manufacturing
Equipment Business

Fine Plastic
Molded Products
Business

Laser Processing
Equipment Business

874

–

–

874

3,426

–

–

3,426

Current period
amortization
Balance at end of
periodTotal(Thousands of U.S. dollars)

Current period
amortization
Balance at end of
period[Information on gain on negative goodwill by reportable segment]
There are no applicable matters.

[Related Party Information]
There are no applicable matters.

46

Total

Note 17 – Per share information
Yen
2022
Net assets per share

U.S. dollars
2023

1,628.592023

1,887.38

14.13

Net income per share
325.08293.69(Note)1. Diluted net income per share is not stated because there are no dilutive shares.
2. The basis for calculating net income per share is as follows:
2022
2023

2.20

Millions of yen
Net income attributable to owners of parent
Amount not attributable to common shareholders
Net income attributable to owners of parent
related to common shares

8,129

7,346

55,019

–

–

–

8,129

7,346

55,019Share
Average number of shares of common stock during
the period

25,008,840

47

2023
Thousands of
U.S. dollars

25,015,367

Schedule of bonds

Consolidated Supplementary Schedules

There are no applicable matters.

Schedule of borrowings, etc.

(Millions of yen)

Category

Beginning balanceEnding balance

Averageinterest rate(%)

Short–term borrowings

5,300

9,400

0.3

–

1,340

1,930

0.5

–

131

133

–

–

3,270

3,950

0.5

2024 to 2027

377

460

–

2024 to 2030

10,41915,873––Current portion of long–term debt
due within 1 year
Current portion of lease obligations
due within 1 year
Long–term borrowings(excluding the current portion)
Lease obligations(excluding the current portion)
Total

Due date(Thousands of U.S. dollars)
Averageinterest rate
Due date(%)

Category

Beginning balanceEnding balance

Short–term borrowings

39,691

70,3960.3–

10,035

14,454

0.5

–

985

997

–

–

24,48929,5810.52024 to 2027

2,827

3,448

–

2024 to 2030

78,027

118,876––

Current portion of long–term debt
due within 1 year
Current portion of lease obligations
due within 1 year
Long–term borrowings(excluding the current portion)
Lease obligations(excluding the current portion)
Total(Note)1. The average interest rate of borrowings is calculated using the weighted average interest rate based on the
average balance during the period.
(Note)2. Average interest rates on lease obligations are not stated because some lease obligations are recorded in
the consolidated balance sheet at the amount before deducting the amount equivalent to interest includedin the total lease payments.
(Note)3. For long–term borrowings and lease obligations (excluding the current portion), the repayment schedule
for the next 5 years after the consolidated closing date is as follows.
(Millions of yen)
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
Long–term debt

1,540

1,100

1,100

210

Lease obligations

108

85

81

60

1 to 2 years

2 to 3 years(Thousands of U.S. dollars)
3 to 4 years
4 to 5 years

Long–term debt

11,533

8,238

8,238

1,573

Lease obligations

814

637

609

454

48

(Note)4. The Company has entered into overdraft agreements and commitment line agreements with 6 banks withthe aim of raising funds more efficiently and stabilizing.
(Millions of yen)
Total amount of overdrafts andOutstanding borrowings
Net amountcommitment line contracts
14,500

9,400

5,100
(Thousands of U.S. dollars)

Total amount of overdrafts andcommitment line contracts

Outstanding borrowings

108,590

70,396

Net amount38,194(Note)5. Financial covenant
Certain borrowings of the Company and commitment line agreements concluded with 5 banks (maximum
amount of 2,500 million yen (18,722 thousand U.S. dollars)) are subject to financial covenants. If any of thefollowing covenants is violated, all obligations under the agreements will lose the benefit of time and the principal
and interest on the borrowings will have to be paid.
1) Financial covenants attached to commitment line agreements(i) The amount of net assets in the consolidated balance sheet as of the end of each fiscal year and the last
day of the second quarter shall be maintained at 22,060 million yen (165,206 thousand U.S. dollars) or more.
(ii) The ordinary profit or loss shown in the consolidated statement of income for each fiscal year shall not
be a loss for 2 consecutive fiscal years from the fiscal year ending March 2022.
2) Financial covenants attached to the Term Loan in the form of a split execution contract (outstanding balanceof 3,000 million yen (22,467 thousand U.S. dollars))(i) The amount of net assets in the consolidated balance sheet as of the end of each fiscal year and the last
day of the second quarter shall be maintained at 19,410 million yen (145,361 thousand U.S. dollars) or more.
(ii) The ordinary profit or loss shown in the consolidated statement of income for each fiscal year shall not
be a loss for 2 consecutive fiscal years from the fiscal year ending March 2020.

Schedule of asset retirement obligations
There are no applicable matters.

49

OTHERS
Quarterly Information for the current consolidated fiscal year
(Cumulative Period)(Millions of yen)
Current consolidated
fiscal year

Q1

Q2

Q3

Sales

14,592

28,78340,17153,822

Quarterly (Current fiscal year)
net income before income taxes and others

3,218

6,479

7,651

10,183

Quarterly (Current fiscal year)
profit attributable to owners of parent

2,357

4,768

5,631

7,346

Quarterly (Current fiscal year)
net income per share
(Yen)

94.28

190.65225.14293.69Q1

Q2(Accounting Period)
Quarterly (Current fiscal year)
net income per share
(Yen)

94.28

Q3

96.37

Q4

34.50

68.55

Q1

Q2

(Thousands of U.S. dollars)
Current consolidated
Q3
fiscal year

Sales

109,281

215,558

300,842

403,075

Quarterly (Current fiscal year)
net income before income taxes and others

24,10048,52257,30376,263

Quarterly (Current fiscal year)
profit attributable to owners of parent

17,65835,71042,17455,019

0.71

1.43

1.69

2.20

Q1

Q2

(Cumulative Period)

Quarterly (Current fiscal year)
net income per share(U.S. dollars)(Accounting Period)
Quarterly (Current fiscal year)
net income per share(U.S. dollars)

0.71

50

Q3
0.72

Q4
0.26

0.51

Corporate Information
As of June 29, 2023

Corporate Data
Corporate Name: TOWA CORPORATION
Headquarters/Factory: 5 Kamichoshi-cho, Kamitoba,

Board of Directors
President & CEO
Hirokazu Okada

Minami-ku, Kyoto 601-8105, Japan
Established: April 17, 1979
Director
Develop,design,manufacture,andsell
Operations:
Koichi Ishida
precision molds, manufacturing systems(consolidated) for electronic components,
Nobutaka Shibahara
precision-molded and assembly products,
Kazuhiro Nishimura
medical-use equipment, laser processing
Muneo Miuraequipment, and precision machining tools.
Other related business.

Paid-in Capital: ¥8,942,950,207

Director
Full-time Audit and Supervisory
Committee Member
Kiyoshige Gamo

Common Stock Authorized: 80,000,000
Issued Number of Shares: 25,033,238
Unit for Trading: 100
Code number: 6315
Stock Listings: Prime Market of Tokyo Stock Exchange
Transfer Agents: Mizuho Trust & Banking Co., Ltd
Fiscal Year: From April 1 to March 31

External Director
Audit and Supervisory Committee
MemberDaisuke Wake
Miho Goto
Motoko Tanaka

Number of Employees: TOWA Corporation: 597(As of March 31, 2023) TOWA Group(consolidated): 1,876

URL: https://www.towajapan.co.jp/en/
Subsidiaries andAffiliated Companies: BANDICK CORPORATIONTOWATEC Co., Ltd.
TOWA LASERFRONT CORPORATIONTOWA Asia-Pacific Pte. Ltd.
TOWAM Sdn. Bhd.
TOWA Tool Sdn. Bhd.
TOWA Semiconductor Equipment Philippines Corp.
TOWA THAI COMPANY LIMITEDTOWA USA Corporation
TOWA Europe B.V.
TOWA Europe GmbHTOWA (Suzhou) Co., Ltd.
TOWA (Shanghai) Co., Ltd.
TOWA (Nantong) Co., Ltd.
TOWA R&D Suzhou Co., Ltd.
TOWA Taiwan Co., Ltd.
TOWA Korea Co., Ltd.
TOWA Fine Co., Ltd.

5 Kamichoshi-cho, Kamitoba, Minami-ku,
Kyoto 601-8105, JapanTEL (+81)75-692-0250 FAX (+81)75-692-0270
http://www.towajapan.co.jp