TOA : Announcement of FY2021 Q1 results

Consolidated Financial Results

for the Three Months Ended June 30, 2021

[Japanese GAAP]

August 3, 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 filing quarterly securities report: August 6, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: No

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

1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 1, 2021 to June 30, 2021)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit		Ordinary profit		Profit attributable to
					owners of parent
	Three months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	June 30, 2021	8,275	(2.2)	(52)	-	(19)	-	(104)	-
	June 30, 2020	8,460	(6.8)	(286)	-	(313)	-	(378)	-

(Note) Comprehensive income: Three months ended June 30, 2021: ¥1,188 million [- %] Three months ended June 30, 2020: ¥(803) million [- %]

Basic earnings

Diluted earnings

per share

per share

Three months ended

Yen

Yen

June 30, 2021

(3.21)

-

June 30, 2020

(11.41)

-

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Million yen

Million yen

%

As of June 30, 2021

59,064

46,996

76.3

As of March 31, 2021

58,572

46,365

75.8

(Reference) Equity: As of June 30, 2021: ¥45,066 million

As of March 31, 2021: ¥44,402 million

2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

yen

yen

yen

yen

yen

Fiscal year ended March 31, 2021

-

10.00

-

10.00

20.00

Fiscal year ending March 31, 2022

-

Fiscal year ending March 31, 2022

10.00

-

10.00

20.00

(Forecast)

(Note) Revision to the forecast for

dividends announced most recently: No

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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 announced in "Consolidated Financial Results for the Fiscal Year Ended March 31, 2021" on May 7, 2021.

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

(Note) Revision to the financial results forecast announced most recently: No

* Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
2. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No

(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Primary Notes,

1. 1. Notes to the Quarterly Consolidated Financial Statements (Changes in accounting policies)" on page 10 of the attached.
2. Total number of issued shares (common shares)
3. 1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2021: 34,536,635 shares

March 31, 2021: 34,536,635 shares

1. Total number of treasury shares at the end of the period: June 30, 2021: 2,017,385 shares
   March 31, 2021: 2,017,212 shares
2. Average number of shares during the period:

Three months ended June 30, 2021: 32,519,361 shares

Three months ended June 30, 2020: 33,146,326 shares

• These quarterly financial results are outside the scope of quarterly review 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.
  • The Company plans to post a supplementary briefing material on quarterly financial results on its website.

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Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review. .......................................	4
(1)	Explanation of Operating Results....................................................................................................................	4
(2)	Explanation of Financial Position ...................................................................................................................	5
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information ..............	5
2. Quarterly Consolidated Financial Statements and Primary Notes.......................................................................	6
(1)	Quarterly Consolidated Balance Sheets ..........................................................................................................	6
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income ..................................................	8
	Quarterly Consolidated Statements of Income................................................................................................	8
	Quarterly Consolidated Statements of Comprehensive Income......................................................................	9
(3)	Notes to the Quarterly Consolidated Financial Statements ...........................................................................	10
	(Notes on going concern assumption)...........................................................................................................	10
	(Notes in the case of significant changes in shareholders' equity)................................................................	10
	(Accounting policies adopted specially for the preparation of quarterly consolidated financial
	statements) ....................................................................................................................................................	10
	(Changes in accounting policies) ..................................................................................................................	10
	(Segment information) ..................................................................................................................................	12

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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, 2021, although the environment surrounding TOA Corporation (hereinafter "the Company") and its subsidiaries (collectively, the "Group") remains severe due to the spread of coronavirus disease (hereinafter "COVID-19"), the global economy continued on a recovery track despite difficulties. However, another surge in COVID-19 cases with the spread of variants continues to suppress socio-economic activities, causing some weakness in the economy.

In such an environment, in an effort to realize our corporate value "Smiles for the Public," we formulated a new management vision targeting 2030, "Dr. Sound-becoming a professional organization that improves sound in society." We will aim to create the value of reassurance, reliability, and emotion as a reliable partner that will realize along with our customers a cycle of identifying, solving, and improving social issues through the continuous provision of "good sound experiences" that customers will choose. In the domestic market, we launched Announcement Creator, a service that creates announcer voice sources from text, which will contribute to streamlining broadcasting operations and reducing the cost of updating announcement voice sources at commercial facilities, factories, public facilities, etc. 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 initiatives to achieve higher user satisfaction through services tailored to each market environment. Even in the environment affected by the spread of COVID-19, we are promoting ongoing business activities with higher efficiency through enabling various work styles and investing in digital tools.

As a result, net sales during the three months ended June 30, 2021 were ¥8,275 million (down ¥185 million, or 2.2%, year on year). Profits showed year-on-year improvement at all levels due to an improvement in the cost ratio and a decrease in selling, general and administrative expenses. Operating profit was negative ¥52 million (up ¥234 million year on year), ordinary profit was negative ¥19 million (up ¥294 million year on year), and profit attributable to owners of parent was negative ¥104 million (up ¥273 million year on year).

Performance by segment is as follows.

(Japan)

Net sales amounted to ¥4,824 million (down ¥277 million, or 5.4%, year on year), and segment profit (operating profit) to ¥678 million (down ¥31 million, or 4.4%, year on year).

Net sales of the entire segment decreased due to a decrease in sales of products for railway cars, despite increases in sales to the education market and sales of products for commercial facilities.

Segment profit declined due to the decrease in net sales.

(Asia & Pacific)

Net sales amounted to ¥1,486 million (down ¥160 million, or 9.7%, year on year), and segment profit (operating profit) to ¥266 million (up ¥40 million, or 18.0%, year on year).

Deliveries of large-scale projects for public offices progressed in Vietnam, and sales grew in Malaysia as well. On the other hand, sales were sluggish in Indonesia despite delivering multiple large-scale projects, as well as in Thailand where delivery dates of properties were changed due to the impact of the spread of COVID-19. Consequently, net sales declined.

Due to an improvement in the cost ratio and a decrease in selling, general and administrative expenses, segment profit increased.

(Europe, Middle East & Africa)

Net sales amounted to ¥1,017 million (up ¥41 million, or 4.3%, year on year), and segment profit

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(operating profit) to ¥123 million (up ¥58 million, or 90.6%, year on year).

Net sales increased due mainly to progress in delivering large-scale projects in the United Kingdom and South Africa and the impact of yen depreciation.

Segment profit increased due to a decrease in selling, general and administrative expenses.

(The Americas)

Net sales amounted to ¥487 million (up ¥52 million, or 12.2%, year on year), and segment profit (operating profit) to ¥31 million (up ¥14 million, or 86.0%, year on year).

In the United States, net sales increased despite changes in delivery dates of large-scale projects as the spread of COVID-19 peaked and economic activities showed signs of recovery. In Canada, net sales increased as sales to the education market grew.

Segment profit increased due to the increase in net sales.

(China & East Asia)

Net sales amounted to ¥459 million (up ¥157 million, or 52.2%, year on year), and segment profit (operating profit) to ¥54 million (up ¥52 million year on year).

Net sales increased due mainly to progress in delivering multiple large-scale projects in China and Taiwan as the spread of COVID-19 slowed down.

Segment profit increased due to the increase in net sales despite an increase in selling, general and administrative expenses.

(2) Explanation of Financial Position

Total assets at the end of the three months ended June 30, 2021 increased by ¥491 million from the end of the previous fiscal year to ¥59,064 million. Assets increased due mainly to increases in cash and deposits and inventories as well as revaluation of investment securities, despite a decrease in notes and accounts receivable - trade. The increase in liabilities and net assets is mainly attributable to increases in foreign currency translation adjustment and valuation difference on available-for-sale securities, despite a decrease in retained earnings due to cash dividends paid.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information

The financial results forecast for the fiscal year ending March 31, 2022 has not been revised from the initial forecast announced in "Consolidated Financial Results for the Fiscal Year Ended March 31, 2021."

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