TOA : Announcement of FY2022 Q2 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 Six Months Ended September 30, 2022
	(Under Japanese GAAP)
	November 1, 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:	November 14, 2022
Scheduled date to commence dividend payments:	December 2, 2022
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	Yes (for institutional investors)

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

1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 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
Six months ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
September 30, 2022	20,307		7.2	45	(93.9)	456	(44.4)	629	36.6
September 30, 2021	18,937		7.2	748	-	822	-	460	-

Note: Comprehensive income	For the six months ended September 30, 2022:	¥2,450 million	[8.1%]
		For the six months ended September 30, 2021:	¥2,267 million	[297.5%]
	Basic earnings	Diluted earnings
		per share	per share
Six months ended		Yen	Yen
September 30, 2022		19.32	-
September 30, 2021		14.15	-

(2) Consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio
As of	Millions of yen	Millions of yen	%
September 30, 2022	63,065	48,939	73.4
March 31, 2022	60,688	46,939	73.7
Reference: Equity
As of September 30, 2022:	¥46,281 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	-	20.00
March 31, 2023
Fiscal year ending			-		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	69.46
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 September 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 September 30, 2022	1,970,502 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)

Six months ended September 30, 2022	32,552,711 shares
Six months ended September 30, 2021	32,528,522 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 Company plans to hold a financial results briefing session for institutional investors (through a live video link) on November 25, 2022. The video and the materials distributed at the session are scheduled to be posted on our website after the session.

• 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 . 4
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto ..........................................	5
(1)	Quarterly consolidated balance sheet .................................................................................................	5
(2)	Quarterly consolidated statement of income and consolidated statement of comprehensive income 7
	Quarterly consolidated statement of income (cumulative).................................................................	7
	Quarterly consolidated statement of comprehensive income (cumulative)........................................	8
(3)	Quarterly consolidated statement of cash flows .................................................................................	9
(4)	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
	(Segment information, etc.)..............................................................................................................	11

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

1. Explanation of Operating Results
   During the six months ended September 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 and the easing of restrictions on movement, concerns over 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 prolongation of the situation in Ukraine, as well as rapid depreciation of the yen in foreign exchange markets 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 sound experiences" that customers choose.
   Specifically, in order to establish a "connected business" that provides value at various points of contact with customers, in addition to offering a "Remote Maintenance Service" that supports stable operation of broadcasting through early response to equipment malfunctions and centralized management of facilities, we have expanded and launched the "IP Audio Series," which can be linked to various systems on a network and perform automatic broadcasting linked to IoT sensors and AI- based sensing. Furthermore, we will deepen cooperation with local government entities and different industries to provide new value, and contribute to the promotion of sustainable urban development through demonstration test projects using audio and video.
   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 six months ended September 30, 2022 were ¥20,307 million (up ¥1,369 million, or 7.2%, year on year). Profit suffered from soaring costs of raw materials and an increase in shipping costs and other operating expenses. Operating profit was ¥45 million (down ¥702 million, or 93.9%, year on year), ordinary profit was ¥456 million (down ¥365 million, or 44.4%, year on year), and profit attributable to owners of parent was ¥629 million (up ¥168 million, or 36.6%, year on year), partly as a result of gain on sale of land.
   Performance by segment is as follows.

(Japan)

Net sales amounted to ¥11,387 million (down ¥156 million, or 1.4%, year on year), and segment profit (operating profit) to ¥1,762 million (down ¥461 million, or 20.7%, year on year).

Sales of products for factories and railway cars grew, but sales to airport facilities 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 ¥4,172 million (up ¥986 million, or 31.0%, year on year), and segment profit (operating profit) to ¥648 million (up ¥139 million, or 27.4%, 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, etc. In addition, in Thailand and Malaysia, progress

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