Medium and Long Term Vision

TOWA Vision 2032 「To the top of the world with change」

Ever since our establishment, We have contributed to technology innovation in semiconductor packaging and the realization of a better society based on our Corporate Mission “to contribute to the growth of the world’s industries by developing and providing key enabling technologies for each successive generation of products, simultaneously, strives to maintain a “quarter-lead” over the competition to ensure that our innovative products are always the first to market.“

Lately, demand for semiconductors is increasing for various applications due to the rapid spread of remote work and online classes with the COVID-19 pandemic. Furthermore, Semiconductor production equipment market is also expanding rapidly with the addition of aggressive investment toward domestic semiconductor production in China, the environment surrounding TOWA has changed drastically.
As the world faces various social issues such as realizing sustainability, in order to achieve further growth and enhance our corporate value, and to become an unrivaled one and only company in the world, we have formulated a new Long-term Vision（TOWA wants to be）.

Growth Strategy of TOWA Vision 2032

TOWA Vision 2032

1. TOWA wants to be

The world's leading company that continues to create customer value through packaging process proposals
A company that realizes sustainable society with TOWA's technology
A well-known company realized by proactive information dissemination
A company where employees can work with a smile, where corporate culture is passed on and diverse values are respected

2. TOWA Vision 2032 Business Targets（Consolidated）

(100M¥)

		FY2024	FY2027	FY2031 (2032/3)
Net Sales		600	760	1,000
S E G M E N T	Semiconductor	440	525	625
	Fine plastic	22	28	40
	New business	112	175	295
	Laser Processing Machine	26	32	40
Operating income		126	167	250
Operating margin		21.0%	22.0%	25.0%

Mid-term business plan I(FY2022～FY2024)

Outline of the three-year mid-term business plan from the fiscal year ending March 31, 2023 to the fiscal year ending March 31, 2025, for the achievement of "TOWA Vision 2032" is as follows.

Mid-term business plan I details the positioning and period for strengthening our foundation to achieve the “Top of the World,” as well as the development of new technologies and investment in manufacturing facilities. In addition, we will actively train human resources to pass on TOWA’s technologies to the next generation, and acquire human resources to expand our operations. In addition, since we will also invest in Digital transformation (DX) to improve the efficiency of office works and production line, the margin will temporarily decline in the Mid-term business plan Ⅰ. However, the operating margin is expected to improve from the Mid-term business plan Ⅱ onward due to the effects of these investments.

Outline of Mid-term business plan I (FY2022～FY2024)

Theme: Process innovation by TOWA

1. Basic Policy

(1)Make added-value inherent to our proprietary technologies, quality and business processes (know-how) into business through paradigm shift and improve

(2)Strengthen market competitiveness and financial base by maximizing throughput with DX

(3)Expand new businesses and profits based on our core technologies

(4)Nourish human resources who have various challenging minds and lead the next generation

(5)Enhance corporate value by actively dealing with SDGs and ESG

2. Business Strategies

【Semiconductor】

① Strengthen profitability of Semiconductor manufacturing equipment business by using added-value to expand process business

② Reinforce our production system and financial base by practicing MIP (Minimal Inventory & Period) designed to shorten lead time and reduce inventories

③ Anticipate customer needs and develop products meet SDGs and ESG investment promptly by proactively investing resources in development

④ Expand markets through collaboration between singulation and blade

【Fine plastic】

① Enhance the added-value of the TOWA brand and increase the business scale on core technologies developed in Fine Plastics business

② Further pursue quality, cost and delivery in order to build a stable profitable structure

③ Diversify products by utilizing medical device licenses

【New business】

① Develop applications of our core technologies in order to create new core business that will help reshape our business portfolio

② Realize new business development through the creation of TOWA-original products

③ Contribute to the stable operations for customers through TSS business and secure the long-term relationships

④ Improve competitiveness and increase market share by utilizing our global production bases to reduce costs

【Laser processing machine】

① Aim at "value creation" and "value acquisition" by creating new products through enhanced applications

② Make full use of TOWA Group’s production and sales bases in order to increase production capacity, reduce costs, and strengthen sales system and services

③ Grow into a company which can provide problem-solving business by thoroughly pursuing customer processes

3. Strategies by function

【Sales strategies】

① Enhance process support and build business models that can be produced only with our technology, thereby expanding sales and improving profitability

② Expand the range of utilization of our proprietary compression devices

③ Build a global sales, management system and service system in order to increase customer satisfaction

【Production strategies】

① Optimize our global production and purchasing system in order to reduce costs and shorten lead times

② Improve production technologies in order to increase confidence in quality

③ Work to make high value-added products with DX

④ Nourish human resources and build a business structure that can respond to changes in the environment (risks)

【Development strategies】

① Develop new products that meet the needs of our customer through paradigm shift

② Establish de facto standards through mold process development and the next-generation molding innovation

③ Promote the environment friendly development that be awareness of SDGs and ESG

【Human resources/organizational strategies】

① Global expansion of TOWA bases for wide-ranging business support from process development to solution proposals

② Nourish global human resources who lead the next generation

③ Promote work style reform by improving operational efficiency with DX

④ Found “TOWA School” for passing down TOWA’s technologies and culture

4. Business Targets（Consolidated）

(100M¥)

		FY2022	FY2023	FY2024
Net Sales		550	570	600
S E G M E N T	Semiconductor	420	425	440
	Fine plastic	19	20	22
	New business	86	100	112
	Laser Processing Machine	25	25	26
Operating income		122	124	126
Operating margin		22.2%	21.8%	21.0%
Ordinary income		122	124	126
Net income		85	87	88

TOWA Vision 2032 and Mid-term business plan I 1,170KB

Disclaimer

This presentation material contains TOWA Group’s forward-looking statements regarding, including but not limited to, plans, policies, finances, technologies, products, services and results. Such forward-looking statements are the judgements made by the Group based on available data, assumptions and applicable methods etc. as of the presentation date, and contain various risks and uncertainties. Also, new risks and uncertainties can occur anytime and it is impossible to predict the occurrence and the effect of them. Thus, please understand the actual results could considerably differ from the forward-looking statements.

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