Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) August 6 , 2026 Prime Market of the Tokyo Stock Exchange https://www.towajapan.co.jp/en/ Company name : Listing : TOWA CORPORATION Securities code : 6315 URL : Representative : Inquiries : Telephone : Muneo Miura , Director , President Executive Officer Kazuhiko Nakanishi , Director , Executive Officer , Corporate Planning Div . Manager +81 75-692-0251 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : Yes None ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated financial results for the three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( cumulative ) ( Percentages indicate year - on - year changes . ) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Three months ended Millions of yen % Millions of yen % June 30 , 2026 June 30 , 2025 16,183 8,080 100.3 2,212 -39.0 -581 Millions of yen 2,332 -732 % Millions of yen % 1,657 -528 [ Note ] Comprehensive income : For the three months ended June 30 , 2026 : For the three months ended June 30 , 2025 : Basic earnings per share ¥ 6,412 million [ - % ] ¥ 351 million [ -84.3 % ] Diluted earnings per share Three months ended June 30 , 2026 June 30 , 2025 ( 2 ) Consolidated Financial Position Yen 22.09 -7.05 Yen Total assets Net assets Equity - to - asset ratio As of Millions of yen Millions of yen % June 30 , 2026 March 31 , 2026 116,411 106,267 75,526 70,611 64.9 66.4 [ Reference ] Equity : As of June 30 , 2026 : ¥ 75,526 million As of March 31 , 2026 : ¥ 70,611 million
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2. Cash Dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 ― 0.00 ― 20.00 20.00 Fiscal year ending March 31, 2027 ― Fiscal year ending March 31, 2027 (Forecast) 0.00 ― 24.00 24.00 [Note] Revisions to the forecast of cash dividends most recently announced: None 3. Forecast of Consolidated Financial Results for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Quarterly figures: YoY; full-year figures: vs. previous fiscal year.) Net Sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of Yen % Millions of Yen % Millions of Yen % Millions of Yen % Yen Interim Year-end 32,000 64,000 36.5 17.7 5,120 10,240 105.3 48.0 5,120 10,240 113.9 47.4 3,500 7,000 89.2 52.4 46.65 93.30 [Note] Revisions to the forecast of consolidated financial results most recently announced: None ※Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates and restatement 1) Changes in accounting policies due to revisions to accounting standards and other regulations: None 2) Changes in accounting policies due to other reasons: None 3) Changes in accounting estimates: None 4) Restatement: None (4) Number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 75,157,367 shares As of March 31, 2026 75,157,367 shares 2) Number of treasury shares at the end of the period As of June 30, 2026 125,703 shares As of March 31, 2026 129,348 shares 3) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 75,029,892 shares Three months ended June 30, 2025 75,008,396 shares [Note] The number of treasury shares, at the end of the period, includes our company's shares that are held by Custody Bank of Japan, Ltd. (trust account E) as the trust property under the J -ESOP system. Also, our company's shares that are held by Custody Bank of Japan, Ltd. (trust account E) as the trust property under the J-ESOP system, are included in the number of treasury shares deducted from calculation of the average number of shares. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountant or an audit firm: None * Proper use of earnings forecasts, and other special matters: 1. The above forecasts reflect the Company’s judgments and assumptions based on available information as of the announcement date, and therefore are not guarantees of future performance. Actual results may differ substantially from the forecasts for various reasons. For further details regarding the performance forecast, please refer to the attached document on page 3, 【1.Overview of Operating Results (3) Explanation on Forecast Information such as Consolidated Earnings Forecast】 2. The presentation materials and supplementary material on quarterly financial results are available on the company’s website.
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- 1 - Contents 1. Overview of Operating Results …………………………………………………………………………………………… 2 (1) Overview of Operating Results for the Current Quarter ………………………………………………………………… 2 (2) Overview of Financial Position ………………………………………………………………………………………… 3 (3) Explanation on Forecast Information such as Consolidated Earnings Forecast ………………………………………… 3 2. Quarterly Consolidated Financial Statements and Principal Notes ……………………………………………………… 4 (1) Quarterly Consolidated Balance Sheet ………………………………………………………………………………… 4 (2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income ……… 6 Quarterly Consolidated Statement of Income …………………………………………………………………………… 6 Quarterly Consolidated Statement of Comprehensive Income ………………………………………………………… 7 (3) Notes to Quarterly Consolidated Financial Statements ………………………………………………………………… 8 (Notes to Going Concern Assumption ) …………………………………………………………………………………… 8 (Notes Related to Significant Changes in Shareholders’ Equity) …………………………………………………………… 8 (Notes to Quarterly Statement of Cash Flows )……………………………………………………………………………… 8 (Notes to Segment Information ) …………………………………………………………………………………………… 9
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- 2 - 1. Overview of Operating Results (1) Overview of Operating Results for the Current Quarter During the first quarter of the current consolidated fiscal year, the global economy remained generally resilient, supported by expanding investment demand centered on AI -related fields. On the other hand, inflationary pressures increased against the backd rop of rising resource and energy prices associated with heightened tensions in the Middle East. Concerns over financial market volatility and geopolitical risks also intensified, and uncertainty surrounding the outlook persisted. In the semiconductor industry, advanced logic and HBM drove the market against the backdrop of demand for AI and data center applications, while prices for general -purpose memory (DRAM and NAND) continued to rise due to tight supply-demand conditions. In response, semiconductor manufacturers expanded their capital expenditures, primarily in AI- and memory-related areas. Under these business conditions, the Group steadily captured robust capital investment demand in the memory and advanced packaging fields, supported by expanding demand for AI and data center applications. In particular, orders for molding equipment, which has a strong track record of adoption in the memory field, remained strong. As a result, orders received amounted to 21,811 million yen, marking a record high on a quarterly basis. Net sales increased primarily due to projects for memory applications, supported by a high level of order backlog, reaching 16,183 million yen. Profitability also improved, as the increase in sales turned profits at each stage from losses recorded in the same period of the previous year to profits, and quarterly profit attributable to owners of the parent amounted to 1,657 million yen. Operating Results for the first quarter consolidated cumulative period are as follows. Net sales 16,183 million yen (year-on-year increase of 8,103 million yen, 2.0 times increase) Operating profit 2,212 million yen (operating loss of 581 million yen in the same period last year) Ordinary profit 2,332 million yen (ordinary loss of 732 million yen in the same period last year) Profit attributable to owners of parent 1,657 million yen (Loss attributable to owners of parent of 528 million yen in the same period last year) Main factors of variation in operating results for the first quarter consolidated cumulative period are as follows. (year- on-year comparison) Impact due to Increase in Net sales 3,447 million yen increase Impact due to Product Mix, etc. 417 million yen increase Impact due to Increase in Development Cost, etc. 568 million yen decrease Impact due to Increase in SG&A 502 million yen decrease
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- 3 - Operating Results by segment are as follows. [Semiconductor Manufacturing Equipment Business] Regarding operating results of the semiconductor manufacturing equipment business, sales of molding equipment increased, primarily for data center applications. As a result, net sales amounted to 15,133 million yen (year-on-year increase of 7,930 million yen, 2.1 times increase). In terms of profit, operating profit amounted to 2,126 million yen (operating loss of 607 million yen in the same period last year), reflecting the effect of higher net sales and an improved product mix. [Medical Device Business] Regarding operating results of the medical device business, demand for medical molded products and assembled products remained firm, while the customer base continued to expand. As a result, net sales amounted to 680 million yen (year-on-year increase of 86 million yen, 14.5%), and operating profit amounted to 132 million yen (year -on-year increase of 29 million yen, 29.3%). [Laser Processing Machine Business] Regarding operating results of the laser processing machine business, net sales amounted to 369 million yen (year-on- year increase of 86 million yen, 30.3%) due to increased sales of laser welding machines. However, as sluggish demand for laser trimmers, the segment’s mainstay products, persisted, an operating loss of 46 million yen (operating loss of 75 million yen in the same period last year) was recorded. (2) Overview of Financial Position Total assets at the end of the first quarter of consolidated fiscal year were ¥116,411 million, an increase of 10,143 million yen compared with the end of the previous consolidated fiscal year. This was mainly due to an increase of 5,746 million yen in investment securities, primarily reflecting higher fair values of investment securities held, as well as an increase of 1,293 million yen in cash and deposits and an increase of 1,610 million yen in notes and accounts receivable. Total liabilities were 40,884 million yen, an increase of 5,229 million yen compared with the end of the previous consolidated fiscal year. This was mainly due to an increase of 3,500 million yen in short-term borrowings for working capital and other purposes, together with an increase in other under non-current liabilities. Total net assets were 75,526 million yen, an increase of 4,914 million yen compared with the end of the previous consolidated fiscal year. This was mainly due to an increase of 3,940 million yen in valuation difference on available - for-sale securities resulting from higher fair values of investment securities held, as well as an increase of 824 million yen in foreign currency translation adjustment and an increase of 155 million yen in retained earnings. As a result, the equity-to-asset ratio at the end of the first quarter of the consolidated fiscal year was 64.9%, a decrease of 1.5 percentage points from 66.4% at the end of the previous consolidated fiscal year. (3) Explanation on Forecast Information such as Consolidated Earnings Forecast Regarding consolidated performance forecast, there is no modification in the consolidated performance forecast for the second quarter cumulative period and the full fiscal year, as announced in the ‘ Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (Under Japanese GAAP)’ on May 11, 2026.
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- 4 - 2. Quarterly Consolidated Financial Statements and Principal Notes (1) Quarterly Consolidated Balance Sheet (Thousands of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 28,431,711 29,724,824 Notes and accounts receivable - trade 16,163,686 17,774,389 Electronically recorded monetary claims - operating 201,287 108,787 Lease receivables and investments in leases 12,955 11,313 Merchandise and finished goods 5,681,054 6,136,370 Work in process 11,830,117 12,541,174 Raw materials and supplies 2,279,450 2,336,084 Other 2,596,216 2,635,765 Allowance for doubtful accounts (28,502) (6,984) Total current assets 67,167,977 71,261,726 Non-current assets Property, plant and equipment Buildings and structures 24,872,224 25,098,547 Accumulated depreciation (14,808,340) (15,092,991) Buildings and structures, net 10,063,884 10,005,555 Machinery, equipment and vehicles 20,502,224 20,815,433 Accumulated depreciation (14,149,039) (14,586,493) Machinery, equipment and vehicles, net 6,353,184 6,228,939 Land 6,635,889 6,636,616 Leased assets 1,958,276 2,011,941 Accumulated depreciation (716,646) (749,726) Leased assets, net 1,241,629 1,262,215 Construction in progress 766,950 840,541 Other 5,893,780 6,085,133 Accumulated depreciation (4,760,340) (4,916,126) Other, net 1,133,439 1,169,006 Total property, plant and equipment 26,194,978 26,142,875 Intangible assets 2,241,001 2,417,948 Investments and other assets Investment securities 7,554,505 13,301,120 Retirement benefit asset 937,507 952,645 Other 2,171,802 2,334,711 Total investments and other assets 10,663,815 16,588,477 Total non-current assets 39,099,795 45,149,301 Total assets 106,267,772 116,411,028
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- 5 - (Thousands of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 5,432,148 5,240,690 Electronically recorded obligations - operating 25,653 14,291 Short-term borrowings 11,500,000 15,000,000 Current portion of long-term borrowings 2,120,000 1,995,000 Income taxes payable 1,079,860 921,081 Provision for product warranties 299,462 326,905 Provision for bonuses 1,330,104 935,779 Provision for bonuses for directors (and other officers) 143,716 28,187 Other 5,628,008 6,912,569 Total current liabilities 27,558,954 31,374,506 Non-current liabilities Long-term borrowings 4,000,000 3,595,000 Retirement benefit liability 1,081,681 1,089,601 Provision for share awards 133,620 147,079 Other 2,881,680 4,678,751 Total non-current liabilities 8,096,982 9,510,433 Total liabilities 35,655,936 40,884,939 Net assets Shareholders' equity Share capital 8,985,585 8,985,585 Capital surplus 480,895 480,895 Retained earnings 48,570,745 48,725,990 Treasury shares (110,772) (107,001) Total shareholders' equity 57,926,454 58,085,470 Accumulated other comprehensive income Valuation difference on available-for-sale securities 4,948,622 8,889,076 Foreign currency translation adjustment 7,620,024 8,444,307 Remeasurements of defined benefit plans 116,733 107,234 Total accumulated other comprehensive income 12,685,381 17,440,618 Total net assets 70,611,835 75,526,088 Total liabilities and net assets 106,267,772 116,411,028
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- 6 - (2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income (Quarterly Consolidated Statement of Income) (Thousands of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 8,080,222 16,183,487 Cost of sales 5,926,361 10,733,386 Gross profit 2,153,860 5,450,100 Selling, general and administrative expenses 2,735,247 3,238,098 Operating profit (loss) (581,386) 2,212,002 Non-operating income Interest income 26,635 51,030 Dividend income 62,195 70,277 Miscellaneous income 94,755 172,274 Total non-operating income 183,586 293,581 Non-operating expenses Interest expenses 27,381 72,406 Foreign exchange losses 288,478 86,534 Miscellaneous losses 18,601 14,069 Total non-operating expenses 334,461 173,011 Ordinary profit (loss) (732,262) 2,332,572 Extraordinary income Gain on sale of non-current assets 297 1,014 Total extraordinary income 297 1,014 Extraordinary losses Loss on sale of non-current assets 1,933 － Loss on retirement of non-current assets 398 2,489 Total extraordinary losses 2,331 2,489 Profit (loss) before income taxes (734,296) 2,331,097 Income taxes (205,422) 673,580 Profit (loss) (528,874) 1,657,516 Profit (loss) attributable to owners of parent (528,874) 1,657,516
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- 7 - (Quarterly Consolidated Statement of Comprehensive Income) (Thousands of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit (loss) (528,874) 1,657,516 Other comprehensive income Valuation difference on available -for-sale securities 495,884 3,940,453 Foreign currency translation adjustment 394,326 824,282 Remeasurements of defined benefit plans (9,721) (9,499) Total other comprehensive income 880,490 4,755,236 Comprehensive income 351,615 6,412,753 Comprehensive income attributable to Comprehensive income attributable to owners of parent 351,615 6,412,753
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- 8 - (3) Notes to Quarterly Consolidated Financial Statements (Notes to Going Concern Assumption) Not applicable. (Notes Related to Significant Changes in Shareholders’ Equity) Not applicable. (Notes to Quarterly Statement of Cash Flows) The Company has not prepared a quarterly statement of cash flows for the three months ended June 30,2026. Depreciation (includi ng amortization related to intangible assets excluding goodwill) and amortization of goodwill for the three months ended June 30,2026 is as follows. (Thousands of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation expense 689,605 854,131 Amortization of goodwill 35,650 38,202
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- 9 - (Notes to Segment Information) [Segment Information] I For the three months ended June 30,2025 (From April 1, 2025, to June 30, 2025) 1. Information on net sales, profit or loss by reportable segment (Thousands of yen) Semiconductor Manufacturing Equipment Business Medical Device Business Laser Processing Machine Business Total Net sales (1) Sales to external customers 7,202,441 594,088 283,692 8,080,222 (2) Inter-segment sales or transfers － － － － Total 7,202,441 594,088 283,692 8,080,222 Segment profit (loss) (607,908) 102,507 (75,985) (581,386) (Note) The total amount of segment profit or loss is consistent with operating loss in the quarterly consolidated statement of income. 2.Information related to impairment losses of non-current assets, goodwill, etc. for each reportable segment There were no significant impairment losses on non -current assets and changes in goodwill in the reported segments for the three months ended June 30,2025. II For the three months ended June 30,2026 (From April 1, 2026, to June 30, 2026) 1. Information on net sales, profit or loss by reportable segment (Thousands of yen) Semiconductor Manufacturing Equipment Business Medical Device Business Laser Processing Machine Business Total Net sales (1) Sales to external customers 15,133,365 680,396 369,726 16,183,487 (2) Inter-segment sales or transfers － － － － Total 15,133,365 680,396 369,726 16,183,487 Segment profit (loss) 2,126,326 132,498 (46,823) 2,212,002 (Note) The total amount of segment profit or loss is consistent with operating profit in the consolidated statement of income. 2.Information related to impairment losses of non-current assets, goodwill, etc. for each reportable segment There were no significant impairment losses on non -current assets and changes in goodwill in the reported segments for the three months ended June 30,2026.