TOA : Announcement of FY2022 Q1 results

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, 2022
	(Under Japanese GAAP)
	August 2, 2022
Company name:	TOA Corporation
Listing:	Tokyo Stock Exchange
Securities code:	6809
URL:	https://www.toa.jp/
Representative:	TAKEUCHI Kazuhiro, President, CEO
Inquiries:	YOSHIDA Keigo, General Manager of Accounting & Financial Department
Telephone:	[phone]

Scheduled date to file quarterly securities report:	August 10, 2022
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, 2022 (from April 1, 2022 to June 30, 2022)

(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, 2022		9,084		9.8		(302)		-	(37)	-	267		-
June 30, 2021		8,275		(2.2)		(52)		-	(19)	-	(104)		-
Note: Comprehensive income	For the three months ended June 30, 2022:	¥1,090 million	[(8.3)%]
		For the three months ended June 30, 2021:	¥1,188 million	[-%]
	Basic earnings		Diluted earnings
		per share			per share
Three months ended				Yen				Yen
June 30, 2022				8.20				-
June 30, 2021				(3.21)				-
(2) Consolidated financial position
		Total assets		Net assets		Equity-to-asset ratio
As of		Millions of yen		Millions of yen		%
June 30, 2022				61,230				47,563		73.7
March 31, 2022				60,688				46,939		73.7
Reference: Equity
As of June 30, 2022:		¥45,147 million
As of March 31, 2022:		¥44,720 million

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	-	10.00		-		10.00	20.00
March 31, 2022
Fiscal year ending	-
March 31, 2023
Fiscal year ending		20.00		-		20.00	40.00
March 31, 2023
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None Breakdown of the dividends for the fiscal year ended March 31, 2022: Stable dividend ¥20

Dividends for the fiscal year ending March 31, 2023 (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, 2022" on May 2, 2022.

3. Consolidated financial results forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages indicate year-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	44,000		7.7	2,900	34.3	3,000	24.6	2,250	53.4	69.13
March 31, 2023
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, 2022	34,536,635 shares
As of March 31, 2022	34,536,635 shares

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

As of June 30, 2022	1,990,647 shares
As of March 31, 2022	1,990,647 shares

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

Three months ended June 30, 2022	32,545,988 shares
Three months ended June 30, 2021	32,519,361 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, 2022, in the environment surrounding TOA Corporation (hereinafter "the Company") and its subsidiaries (collectively, the "Group"), although the normalization of social and economic activities proceeded, partly due to widespread vaccination against COVID-19, concerns over another surge in COVID-19 cases in certain regions, soaring costs of raw materials and components such as crude oil, natural gas, steel, and semiconductors, rises in shipping costs, and rising geopolitical risk, primarily related to the situation in Ukraine, as well as rapid depreciation of the yen in foreign exchange markets and other factors mean that close attention must continue to be paid with regard to the outlook for the global economy.
   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 sound experiences" that customers choose.
   Specifically, in Japan, as part of our aim to establish a "connected business" that delivers value to customers in a broad range of settings, we have begun offering the "remote maintenance service," in which we support stable broadcasting operations through our quick response to any abnormalities with equipment and integrated management of facilities. 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.
   As a result, net sales during the three months ended June 30, 2022 were ¥9,084 million (up ¥808 million, or 9.8%, year on year). Profit suffered from soaring costs of raw materials and an increase in shipping costs and other operating expenses. Operating profit was negative ¥302 million (down ¥250 million year on year), ordinary profit was negative ¥37 million (down ¥18 million year on year), and profit attributable to owners of parent was ¥267 million (up ¥371 million year on year), partly as a result of gain on sale of land.
   Performance by segment is as follows.

(Japan)

Net sales amounted to ¥4,795 million (down ¥29 million, or 0.6%, year on year), and segment profit (operating profit) to ¥451 million (down ¥226 million, or 33.5%, year on year).

Sales of products for factories and railway cars grew. Further, sales of visual equipment also increased by capturing the demand for street crime prevention, etc., but sales to the educational market and the disaster reduction and prevention markets fell, and net sales of the entire segment decreased.

Segment profit decreased due to soaring costs of raw materials and an increase in shipping costs and other operating expenses, as well as the decrease in net sales.

(Asia & Pacific)

Net sales amounted to ¥2,108 million (up ¥621 million, or 41.8%, year on year), and segment profit (operating profit) to ¥280 million (up ¥14 million, or 5.5%, year on year).

In the Islamic world, particularly in Indonesia, sales to the religious market grew as a result of efforts to capture demand related to Ramadan. In addition, in Thailand, progress was made on deliveries to newly opened commercial facilities. As a result, net sales for the entire segment increased, and segment profit rose.

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