TOA : Financial Report for the 1st Quarter (170KB)

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, 2023
	(Under Japanese GAAP)
	August 2, 2023
Company name:	TOA Corporation
Listing:	Tokyo Stock Exchange
Securities code:	6809
URL:	https://www.toa-global.com/en
Representative:	TANIGUCHI Masahiro, President, CEO
Inquiries:	YOSHIDA Keigo, General Manager of Accounting & Financial Department
Telephone:	[phone]

Scheduled date to file quarterly securities report:	August 10, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)

(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		%	Millions of yen			%	Millions of yen		%
June 30, 2023		10,042		10.5	(114)		-	169		-		(63)		-
June 30, 2022		9,084		9.8	(302)		-	(37)		-		267		-
Note: Comprehensive income	For the three months ended June 30, 2023:	¥1,204 million		[10.5%]
		For the three months ended June 30, 2022:	¥1,090 million		[(8.3)%]
	Basic earnings	Diluted earnings
		per share		per share
Three months ended				Yen			Yen
June 30, 2023				(1.96)			-
June 30, 2022				8.20			-

(2) Consolidated financial position

	Total assets	Net assets
As of	Millions of yen	Millions of yen
June 30, 2023	63,895	49,178
March 31, 2023	63,905	48,764
Reference: Equity
As of June 30, 2023:	¥46,404 million
As of March 31, 2023:	¥46,242 million

Equity-to-asset ratio

%

72.6

72.4

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	-	20.00		-		20.00	40.00
March 31, 2023
Fiscal year ending	-
March 31, 2024
Fiscal year ending		20.00		-		20.00	40.00
March 31, 2024
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None Breakdown of the dividends for the fiscal year ended March 31, 2023: Stable dividend ¥40

Dividends for the fiscal year ending March 31, 2024 (Forecast) will be determined by taking into account the performances on stable dividend of ¥40, aiming at a consolidated dividend payout ratio of 45%, as announced in "Consolidated Financial Results for the Fiscal Year Ended March 31, 2023" on May 2, 2023.

3. Consolidated financial results forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

								(Percentages indicateyear-on-year changes.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings per
		owners of parent	share
	Millions of		%	Millions of	%	Millions of	%	Millions of	%	Yen
	yen		yen	yen	yen
Fiscal year ending	48,000		6.4	2,500	45.9	2,600	23.5	1,550	(12.2)	48.19
March 31, 2024
Note: Revisions to the consolidated financial results forecasts most recently announced: None

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 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
5. Number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2023

As of March 31, 2023

34,136,635 shares

34,136,635 shares

(ii) Number of treasury shares at the end of the period

As of June 30, 2023

As of March 31, 2023

1,970,724 shares

1,970,633 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2023

Three months ended June 30, 2022

32,165,980 shares

32,545,988 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
• • Forecasts presented herein are the current prospects based on information currently available and contain elements of uncertainty. Actual results may therefore differ from the forecasts due to subsequent changes in the circumstances.
  • The supplementary materials on quarterly financial results are scheduled to be posted on our website.

• Table of Contents of Attached Materials

	Index
1. Qualitative Information on Quarterly Financial Results for the Period Under Review	2
(1)	Explanation of Operating Results	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information . 3
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto	4
(1)	Quarterly consolidated balance sheet	4
(2)	Quarterly consolidated statement of income and consolidated statement of comprehensive income 6
	Quarterly consolidated statement of income (cumulative)	6
	Quarterly consolidated statement of comprehensive income (cumulative)	7
(3)	Notes to the Quarterly Consolidated Financial Statements	8
	(Notes on going concern assumption)	8
	(Notes in the case of significant changes in shareholders' equity)	8
	(Accounting policies adopted specially for the preparation of quarterly consolidated financial
	statements)	8
	(Segment information, etc.)	9

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1. Qualitative Information on Quarterly Financial Results for the Period Under Review

1. Explanation of Operating Results
   During the three months ended June 30, 2023, in the environment surrounding TOA Corporation (hereinafter "the Company") and its subsidiaries (collectively, the "Group") in Japan, due to various developments such as the Government changing the category of COVID-19 under the Infectious Diseases Control Act to Category 5, social and economic activities proceeded to go back to normal, and the recovery in inbound demand, an increasing appetite for capital investment and other factors have led to a trend of moderate recovery in the business economy. On the other hand, rising prices of raw materials and increase in the price of goods, geopolitical risk, primarily related to prolongation of the situation in Ukraine, as well as rapid fluctuations in foreign exchange markets, increase in interest rates and other factors mean that the outlook for the global economy still continues to be uncertain.
   In such an environment, in order to achieve "Smiles for the Public," which is our corporate value, we have set forth our management vision targeting 2030, "Dr. Sound-becoming a professional organization that improves sound in society." We aim to create the value of reassurance, reliability, and emotion as a reliable partner that realizes, along with our customers, a cycle of identifying, solving, and improving social issues through the continuous provision of good experience through sound that customers choose.
   During the three months ended June 30, 2023, in Japan, we started to provide the beta version service of "YUTTE," which allows simple-to-use voice generation for broadcast announcements that works by inputting text on a PC. We have introduced this service on a trial basis at tourist facilities and public transport facilities, and it is enabling users to easily announce timely information in ways suited to a variety of locations and uses.
   We also launched operations of an IT system platform to improve the efficiency of our marketing activities in five regions around the world, as part of our continuing initiatives to achieve higher user satisfaction through services tailored to each market environment.
   In these circumstances, net sales during the three months ended June 30, 2023 were ¥10,042 million (up ¥958 million, or 10.5%, year on year). In terms of profits, operating expenses increased but operating profit was negative ¥114 million (up ¥188 million year on year), ordinary profit was ¥169 million (up ¥207 million year on year), and profit attributable to owners of parent was negative ¥63 million (down ¥330 million year on year). Profit attributable to owners of parent decreased mainly because a gain on sale of land was recorded in the same period of the previous fiscal year.
   Performance by segment is as follows.

(Japan)

Net sales amounted to ¥4,770 million (down ¥24 million, or 0.5%, year on year), and segment profit (operating profit) was ¥493 million (up ¥41 million, or 9.3%, year on year).

Sales of products for hospitals, factories, the transport market and the educational market grew, but net sales for the entire segment fell due to a decrease in sales of products for railway cars in North America.

Although net sales decreased, the decrease in operating expenses caused segment profit to increase.

(Asia & Pacific)

Net sales amounted to ¥2,646 million (up ¥538 million, or 25.6%, year on year), and segment profit (operating profit) was ¥555 million (up ¥274 million, or 97.9%, year on year).

In the Islamic world, such as Indonesia and Malaysia, sales to the religious market grew as a result of efforts to capture demand related to Ramadan. In addition, progress was made on deliveries to large-scale urban development projects in Vietnam. As a result of that and other factors, net sales for the entire segment increased, and segment profit rose.

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