TOA : Financial Results Briefing for the 2nd Quarter of the FY2023

Financial Results Briefing for the Second Quarter of the Fiscal Year Ending March 31, 2024

TOA Corporation

Securities Code: 6809

Future Outlook

• Theinformationdisclosed by the Company may include matters related to the future outlook. Forecasts are based on information available at the time of publication, and the results may differ significantly depending on economic conditions and other factors. The Company makes every effort to improve the accuracy of its future outlook and disclose any changes as appropriate.
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• While every effort has been made to ensure the accuracy of the information contained herein, the Company does not guarantee or take responsibility for the accuracy of the information.

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FINANCIAL RESULTS FOR THE SECOND QUARTER OF THE FISCAL YEAR ENDING MARCH 31, 2024

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Performance in the Second Quarter of the FY Ending March 31, 2024 (Changes from Previous Fiscal Year)

		Segment	Net sales	Operating profit
		Japan	Increased revenue	Increased profit
		Asia & Pacific	Increased revenue	Increased profit
		Europe, Middle East & Africa	Increased revenue	Increased profit
		The Americas	Increased revenue	Became profitable
		China & East Asia	Increased revenue	Increased profit
		Group total	Increased revenue	Increased profit
			4

Performance in the Second Quarter of the FY Ending March 31, 2024 (Consolidated)

(Million yen)

25,000 20,4000 15,3000 2,000 1,000

0 -1,000

		Second quarter of the FY	Second quarter of the FY	Second quarter of the FY	Second quarter of the FY
		2021.3⽉期2Q	2022.3⽉期2Q	2023.3⽉期2Q	2024.3⽉期2Q
		ended March 31, 2021	ended March 31, 2022	ended March 31, 2023	ending March 31, 2024
■ Net sales	17,666	18,937	20,307	21,891 (+7.8%)
	■ Operating profit	-32	748	45	693 (+1440.0%)
■ Ordinary profit	53	822	456	1,191 (+161.0%)
	■ Net profit*	-155	460	629	739 (+17.5%)
*Profit attributable to owners of parent			Percentages indicate year-on-year change.
			5

NetSales in theSecond Quarter of theFY Ending March 31, 2024 by Regional Segment

(Million yen)

30,000

25,000

20,000

15,000

10,000

5,000

0

Performance in the

second quarter of the fiscal year

20,307	21,891
1,033
1,004	1,287
1,155	3,119
2,586

4,1724,638

11,38711,812

Second quarter of the	Second quarter of the
FY ended	FY ending
March 31, 2023	March 31, 2024

(Million yen)

60,000

50,000

40,000

30,000

20,000

10,000

-

Annual numerical forecast

		49,000
	45,123	2,000
40,864	1,922	2,700
1,851	2,536	6,100
2,081	5,468
4,518		9,700

6,418	8,368

25,994 26,827 28,500

FY ended	FY ended	Forecast for the FY
March 31, 2022	March 31, 2023	ending
		March 31, 2024

■ Japan ■Asia & Pacific ■ Europe, Middle East & Africa ■ The Americas ■ China & East Asia

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Net Sales in the Second Quarter of the FYEnding March 31, 2024 by Product Category

(Million yen)

30,000

25,000

20,000

15,000

10,000

5,000

0

Performance in the

second quarter of the fiscal year

	21,891
20,307	338
2,910
1,262
2,440

18,630

16,593

Overseas

Overseas9,512

8,918

Second quarter of the	Second quarter of the
FY ended	FY ending
March 31, 2023	March 31, 2024

(Million yen)

60,000

50,000

40,000

30,000

20,000

10,000

-

Annual numerical forecast

		49,000
	45,123	1,100
40,864	1,814	7,100
1,584	6,274
6,097		40,800
	37,011
33,161

Overseas	Overseas	Overseas
20,500
18,289
14,869

FY ended	FY ended	Forecast for the FY
March 31, 2022	March 31, 2023	ending
		March 31, 2024

• Audio ■ Video■ Railway cars

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New Products Launched to Increase Sales

• IP Audio Series expansion

IP	Motion
camera	sensor

IP-A1MP Microphone Panel
	IP-A1RM IP Remote Microphone
IP-A1PA12 IP Power Amplifier	Simple to use and easy to operate
with various functions available

• Linking to various devices and systems over networks, automatic broadcasting triggered by IoT sensors and AI sensing is possible. Broadcast operations can be simplified, contributing to more efficient facility operations and the reduction of labor.
• In September 2023, three new models were launched, including a remote microphone, to support a wider range of work environments and operational practices.
• Our goal in all five regional segments is to offer new means of communication, develop new distribution channels and expand sales.

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Initiatives to Address Rising Costs

Purchasing

Parts availability issues have peaked and are easing.

Cost increases due to rising prices, currency effects, etc. will continue.

Sales

Parts, especially electronic parts, have long lead times. Inventory has increased due to the longer lead times.

We are visualizing the status by categorizing the importance and risk of products and parts.

• We are increasing sales with a stable supply of products.

We are standardizing parts and coordinating global purchasing.

• We are enabling centralized purchasing to promote cost reduction.

We are intensifying cross-departmental collaboration to clarify products and quantities to be sold.

• We are thoroughly managing production and sales to reduce inventory.

Logistics

Requests have been received for increases in shipping rates in Japan.

Container prices are trending down, but are not expected to return to pre-COVID-19 pandemic levels.

We are examining shipping methods and lead times.

We are reducing container volume while controlling inventory.

• We are reducing shipping costs.

We revised prices in Japan in April 2022 and July 2023, and overseas as appropriate based on market conditions.

We plan to reduce costs and increase profits by more closely coordinating the purchasing, production, logisticsand sales functions.

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Change in R&D Expenses, Capital Investment and Depreciation Expenses (Consolidated)

(Million yen)	Second quarter of FY	Second quarter of FY	Change
ended March 31, 2023	ending March 31, 2024	(year-on-year)
R&D expenses	1,413	1,433	+20

Capital investment

922

648

-274

Depreciation expenses

714

777

+63

• The decrease in capital investment is due to the development of information system infrastructure in the same quarter of the previous fiscal year.

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