TOA : Announcement of FY2020 results

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2021

[Japanese GAAP]

May 7, 2021

Company name: TOA Corporation

Stock exchange listing: Tokyo Stock Exchange

Code number: 6809

URL: https://www.toa.jp/

Representative: TAKEUCHI Kazuhiro, President, CEO

Contact: YOSHIDA Keigo, General Manager of Accounting & Financial Department

Scheduled date of Ordinary General Meeting of Shareholders: June 22, 2021

Scheduled date of filing annual securities report: June 22, 2021

Scheduled date of commencing dividend payments: June 23, 2021

Availability of supplementary briefing material on financial results: Yes

Schedule of financial results briefing session: Yes (Only in the form of a video posted on the Company's website.)

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 31, 2021)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
	Fiscal year ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	March 31, 2021	40,575	(10.0)	2,293	(33.8)	2,558	(28.5)	1,596	(22.7)
	March 31, 2020	45,068	(2.7)	3,465	(11.2)	3,577	(12.7)	2,065	(17.5)

(Note) Comprehensive income: Fiscal year ended March 31, 2021: ¥3,707 million [48.9 %] Fiscal year ended March 31, 2020: ¥2,490 million [217.0 %]

Basic earnings

Diluted earnings

Rate of return

Ordinary profit to

Operating profit

per share

per share

on equity

total assets

to net sales

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2021

48.87

-

3.7

4.4

5.7

March 31, 2020

60.99

-

4.8

6.1

7.7

(Reference) Share of profit (loss) of entities accounted for using equity method:

Fiscal year ended March 31, 2021: ¥(4) million

Fiscal year ended March 31, 2020: ¥(2) million

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets

per share

Million yen

Million yen

%

yen

As of March 31, 2021

58,572

46,365

75.8

1,365.41

As of March 31, 2020

58,653

44,780

72.9

1,262.02

(Reference) Equity: As of March 31, 2021: ¥44,402 million

As of March 31, 2020: ¥42,756 million

(3) Consolidated Cash Flows

Cash flows from

Cash flows from

Cash flows from

Cash and

cash equivalents

operating activities

investing activities

financing activities

at end of period

Fiscal year ended

Million yen

Million yen

Million yen

Million yen

March 31, 2021

5,290

(2,072)

(3,055)

16,268

March 31, 2020

1,832

(2,558)

(2,746)

16,108

2. Dividends

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		Annual dividends			Total amount	Dividend		Dividend on
	1st	2nd	3rd	Year-			payout ratio	net assets ratio
	quarter-	quarter-	quarter-	Total		of dividends
		(Consolidated)	(Consolidated)
	end	end	end	end
	yen	yen	yen	yen	yen		Million yen	%	%
Fiscal year ended	-	10.00	-	16.00	26.00	880	42.6	2.0
March 31, 2020
Fiscal year ended	-	10.00	-	10.00	20.00	650	40.9	1.5
March 31, 2021
Fiscal year ending
March 31, 2022	-	10.00	-	10.00	20.00			38.3
(Forecast)

Breakdown of the dividends for the fiscal year ended March 31, 2020: Stable dividend ¥20, Performance-based

dividend ¥2, Commemorative dividend ¥4

Breakdown of the dividends for the fiscal year ended March 31, 2021: Stable dividend ¥20

Dividends for the fiscal year ending March 31, 2022 (Forecast) will be determined by taking into account the performances on stable dividend of ¥20, aiming at a consolidated dividend payout ratio of 35%, as specified in "(5) Basic Policy on Distribution of Profits and Dividends for Current and Next Fiscal Year" on page 7.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Basic earnings
			owners of parent	per share
	Million yen		%	Million yen	%	Million yen		%	Million yen	%	Yen
Full year	42,000		3.5	2,550	11.2	2,600		1.6	1,700	6.5	52.23

* Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
4. Total number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares):

March 31, 2021: 34,536,635 shares

March 31, 2020: 34,536,635 shares

1. Total number of treasury shares at the end of the period: March 31, 2021: 2,017,212 shares
   March 31, 2020: 657,114 shares
2. Average number of shares during the period:

Fiscal year ended March 31, 2021: 32,673,357 shares

Fiscal year ended March 31, 2020: 33,874,001 shares

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(Reference) Overview of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 31,

2021)
(1) Non-consolidated Operating Results				(% indicates changes from the previous corresponding period.)
				Net sales				Operating profit		Ordinary profit	Profit
	Fiscal year ended		Million yen	%		Million yen	%		Million yen	%	Million yen	%
	March 31, 2021		28,629	(9.7)		983	(38.4)		1,448	(27.9)	1,067	(31.1)
	March 31, 2020		31,713	(3.4)		1,597	3.7		2,008	(0.7)	1,549	2.1
			Basic earnings	Diluted earnings
			per share	per share
	Fiscal year ended			Yen				Yen
	March 31, 2021		32.67			-
	March 31, 2020		45.75			-
(2) Non-consolidated Financial Position
				Total assets		Net assets	Equity ratio	Net assets
					per share
				Million yen				Million yen		%		Yen
	As of March 31, 2021			40,944				33,953		82.9	1,044.11
	As of March 31, 2020			40,008				32,709		81.8	965.48

(Reference) Equity: As of March 31, 2021: ¥33,953 million As of March 31, 2020: ¥32,709 million

• These financial results are outside the scope of audit by a certified public accountant or an audit corporation.
• Explanation of the proper use of financial results forecast and other notes

Forecasts presented herein are the current prospects based on information currently available and contain elements of uncertainty. Actual results may therefore differ from the above forecasts due to subsequent changes in the circumstances.

In order to prevent the spread of Coronavirus disease (COVID-19), the Company plans to post a financial results briefing video and a supplementary briefing material on financial results on its website instead of holding a financial results briefing session for institutional investors as in the past.

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Table of Contents
1.	Overview of Operating Results, Etc. ............................................................................................................	5
(1)	Overview of Operating Results for the Fiscal Year Under Review .........................................................	5
(2)	Overview of Financial Position for the Fiscal Year Under Review..........................................................	6
(3)	Overview of Cash Flows for the Fiscal Year Under Review ....................................................................	6
(4) Future Outlook .........................................................................................................................................	7
(5)	Basic Policy on Distribution of Profits and Dividends for Current and Next Fiscal Year........................	7
2.	Basic Views on the Selection of Accounting Standards ...............................................................................	7
3.	Consolidated Financial Statements and Primary Notes ................................................................................	8
(1)	Consolidated Balance Sheets....................................................................................................................	8
(2)	Consolidated Statements of Income and Comprehensive Income .........................................................	10
		Consolidated Statements of Income .......................................................................................................	10
		Consolidated Statements of Comprehensive Income ..............................................................................	11
(3)	Consolidated Statements of Changes in Net Assets ...............................................................................	12
(4)	Consolidated Statements of Cash Flows ................................................................................................	14
4.	Non-consolidated Financial Statements......................................................................................................	15
(1)	Non-consolidated Balance Sheets ..........................................................................................................	15
(2)	Non-consolidated Statements of Income................................................................................................	17
(3)	Non-consolidated Statements of Changes in Net Assets ........................................................................	18

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1. Overview of Operating Results, Etc.

1. Overview of Operating Results for the Fiscal Year Under Review

During the fiscal year ended March 31, 2021, the business environment surrounding the Group experienced a significant decline in economic activities during the three months ended June 30, 2020 attributable to the global spread of the novel coronavirus (COVID-19), but there were signs of recovery due to the resumption of economic activities beginning from the three months ended September 30, 2020. However, there are differences in the speed of recovery among countries and regions due to discrepancies in the pace of widespread vaccine administration and the scale of fiscal stimulus in each country, and a significant economic downturn has been anticipated due to the emergence and spread of new virus variants, causing the future outlook to remain uncertain.

In such an environment, we engage in activities to further strengthen our "connection with our customers" through interactions with both people and goods in order to realize our corporate value "Smiles for the Public," and on December 10, 2020, we had our grand opening of "Knowledge Square," a new research and development base. We have started utilizing the base as a venue for "co-creation," where a wide variety of people and information gather to create new value together. In the domestic market, we are taking measures against natural disasters that require continued vigilance and providing value in line with new forms of society and lifestyles. Specifically, we contributed to solving issues over communication in the new forms of society and lifestyles, centered on a lineup of products including partition-mounted conversation assistance systems and hands-free megaphones, as well as the provision of a congestion status distribution solution in order to help people avoid congestion.

We also introduced and launched a new system platform to improve the efficiency of our marketing activities in five regions around the world, while pursuing initiatives to achieve user satisfaction at a higher level in accordance with each market environment. Even in the environment affected by the spread of COVID-19, we are promoting continued and more efficient business activities through investment in various work styles and digital tools.

However, due to the impact of the stagnation of global economic activities, net sales during the fiscal year ended March 31, 2021 were ¥40,575 million (down ¥4,493 million, or 10.0%, year on year). In terms of profits, while selling, general and administrative expenses decreased, operating profit was ¥2,293 million (down ¥1,171 million, or 33.8%, year on year), ordinary profit was ¥2,558 million (down ¥1,019 million, or 28.5%, year on year), and profit attributable to owners of parent was ¥1,596 million (down ¥469 million, or 22.7%, year on year).

Performance by segment is as follows.

(Japan)

Net sales amounted to ¥27,562 million (down ¥1,850 million, or 6.3%, year on year), and segment profit (operating profit) to ¥6,139 million (down ¥635 million, or 9.4%, year on year).

Despite the increase in delivery of products for railway cars and growth in sales to public offices, such as sales for disaster reduction and prevention markets, net sales of the entire segment decreased due to sluggish private sector demand resulting from stagnant economic activities. Segment profit declined due to lower revenues, despite an improvement in the cost ratio and a decrease in selling, general and administrative expenses.

(Asia & Pacific)

Net sales amounted to ¥5,927 million (down ¥1,528 million, or 20.5%, year on year), and segment profit (operating profit) to ¥1,010 million (down ¥362 million, or 26.4%, year on year).

Sales grew in Vietnam due mainly to progress in delivering large-scale projects for public offices. In Indonesia and Malaysia, despite the delivery of certain large-scale projects, net sales decreased as a result of sluggish sales to the religious facility market, which is a particularly important market, due to the impact

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