Financial Summary for the Third Quarter of the Fiscal Year Ending March 2026

Performance Overview

During the consolidated cumulative third quarter period of the fiscal year ending March 2026, the global economy experienced continued easing trends in interest rates in the U.S. and Europe and ongoing slowdown risks in China. In the semiconductor industry, market demand expansion for AI and data center applications drove growth. However, due to sluggish demand for automotive semiconductors, TOWA Corporation's net sales declined year-on-year, and product mix effects resulted in decreased revenue and profits. Net sales amounted to JPY 36,930 million (5.9% YoY decrease), operating income was JPY 3,685 million (43.5% YoY decrease), and net income attributable to owners of parent for the quarter was JPY 2,627 million (49.0% YoY decrease). Order intake remained strong, especially for memory and AI/data center applications, recording JPY 19,620 million (34.3% YoY increase), marking the second highest level historically and expected to contribute to future earnings.

Segment Performance and Financial Position

The semiconductor manufacturing equipment segment posted net sales of JPY 33,940 million (6.0% YoY decrease) and operating income of JPY 3,425 million (44.8% YoY decrease). The medical devices segment recorded net sales of JPY 1,865 million (7.8% YoY increase) and operating income of JPY 346 million (6.1% YoY decrease). The laser processing equipment segment reported net sales of JPY 1,162 million (20.0% YoY decrease) with an operating loss of JPY 867 million. On the financial position, total assets increased to JPY 1,013,572 million, and the equity ratio stood at 66.6%, down 7.2 points compared to the previous fiscal year-end.