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, 2024 | |
(Under Japanese GAAP) | |
November 1, 2024 | |
Company name: | TOA Corporation |
Listing: | Tokyo Stock Exchange |
Securities code: | 6809 |
URL: | https://www.toa-global.com/en |
Representative: | TANIGUCHI Masahiro, President, CEO |
Inquiries: | YOSHIDA Keigo, General Manager of Accounting & Financial Department |
Telephone: | +81-78-303-5620 |
Scheduled date to file semi-annual securities report: | November 14, 2024 |
Scheduled date to commence dividend payments: | December 3, 2024 |
Preparation of supplementary material on financial results: | Yes |
Holding of 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, 2024 (from April 1, 2024 to September 30, 2024)
(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, 2024 | 22,769 | 4.0 | 704 | 1.6 | 766 | (35.7) | 139 | (81.2) | ||
September 30, 2023 | 21,891 | 7.8 | 693 | - | 1,191 | 161.0 | 739 | 17.5 | ||
Note: Comprehensive income | For the six months ended September 30, 2024: | ¥2,434 million | [1.3%] | |||
For the six months ended September 30, 2023: | ¥2,402 million | [(1.9)%] | ||||
Basic earnings | Diluted earnings | |||||
per share | per share | |||||
Six months ended | Yen | Yen | ||||
September 30, 2024 | 4.63 | - | ||||
September 30, 2023 | 22.98 | - | ||||
(2) Consolidated financial position
Total assets | Net assets | |
As of | Millions of yen | Millions of yen |
September 30, 2024 | 64,871 | 50,883 |
March 31, 2024 | 64,734 | 49,239 |
Reference: Equity | ||
As of September 30, 2024: | ¥48,088 million | |
As of March 31, 2024: | ¥46,583 million |
Equity-to-asset ratio
%
74.1
72.0
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 | - | 20.00 | - | 20.00 | 40.00 | ||
March 31, 2024 | |||||||
Fiscal year ending | - | 20.00 | |||||
March 31, 2025 | |||||||
Fiscal year ending | - | 20.00 | 40.00 | ||||
March 31, 2025 | |||||||
(Forecast) | |||||||
Note: Revisions to the forecast of cash dividends most recently announced: None Breakdown of the dividends for the fiscal year ended March 31, 2024: Stable dividend ¥40
Dividends for the fiscal year ending March 31, 2025 (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, 2024" on May 2, 2024.
3. Consolidated financial results forecasts for the fiscal year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
(Percentages indicateyear-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 | 52,000 | 6.5 | 3,700 | 22.2 | 3,900 | 5.1 | 2,400 | 20.1 | 79.85 | |
March 31, 2025 | ||||||||||
Note: Revisions to the consolidated financial results forecasts most recently announced: None |
* Notes
- Significant changes in the scope of consolidation during the period: None
- Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: Yes
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2024
As of March 31, 2024
34,136,635 shares
34,136,635 shares
(ii) Number of treasury shares at the end of the period
As of September 30, 2024
As of March 31, 2024
4,066,592 shares
4,080,281 shares
- Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2024
Six months ended September 30, 2023
30,060,974 shares
32,171,126 shares
- Semi-annualfinancial results reports are exempt from 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 26, 2024. The video and the materials distributed at the session are scheduled to be posted on our website promptly after the session.
- Table of Contents of Attached Materials
Index | ||
1. Overview of Operating Results, Etc | 2 | |
(1) | Overview of Operating Results for the Period Under Review | 2 |
(2) | Overview of Financial Position for the Period Under Review | 3 |
(3) | Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information . 4 | |
2. Semi-annual Consolidated Financial Statements and Significant Notes Thereto | 5 | |
(1) | Semi-annual consolidated balance sheet | 5 |
(2) | Semi-annual consolidated statement of income and consolidated statement of comprehensive | |
income | 7 | |
Semi-annual consolidated statement of income | 7 | |
Semi-annual consolidated statement of comprehensive income | 8 | |
(3) | Semi-annual consolidated statement of cash flows | 9 |
(4) | Notes to the Semi-annual 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 semi-annual consolidated financial | ||
statements) | 10 | |
(Notes on change in accounting policy) | 10 | |
(Notes on segment information, etc.) | 11 |
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1. Overview of Operating Results, Etc.
-
Overview of Operating Results for the Period Under Review
During the six months ended September 30, 2024, in the environment surrounding TOA Corporation (hereinafter "the Company") and its subsidiaries (collectively, the "Group"), an increasing appetite for capital investment, an improvement in labor and income environment and other factors have led to a trend of recovery in the business economy in Japan. However, remaining high prices of raw materials and the effects of inflation, geopolitical risks caused by the unstable international situation, as well as rapid fluctuations in foreign exchange markets and other factors mean that the outlook for the global economy 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 experiences through sound that customers choose.
During the six months ended September 30, 2024, we enhanced the PTZ camera in the network camera system TRIFORA Series. By equipping the camera with the new feature "Color Night Mode" through the adoption of the latest imaging sensor, we improved the camera's visual recognition capabilities in dark locations compared with prior models. The camera can solve social issues as it is now suitable to be used for intruder prevention in high-level security facilities, or to be adopted as part of measures against suspicious persons in outdoor facilities.
In addition, we enhanced the high-impedance model, low- and high-impedance weather-proof model, and subwoofer lineup in the F-Box Series Surface Mount Speaker, which underwent renewal in 2023. We realized simple design that fits in harmony with the installation space and smooth constructability. By offering sound reproduction with flat acoustic characteristics, it contributes to spatial production that aligns with specific usage scenarios, such as BGM or announcement systems at various facilities.
Furthermore, we held an event at our own facilities titled "TOA NEXT COMMUNICATION" centered on the theme of "next communication for future urban environments" in September 2024 as part of our 90th anniversary celebrations, and based on the concept conceived by the Company of a "city in the near future," where digital technologies interconnect people and facilities, we engaged in a co-creation of ideas aimed at realizing a better future society.
In these circumstances, net sales during the six months ended September 30, 2024 were ¥22,769 million (up ¥878 million, or 4.0%, year on year). In terms of profits, operating expenses increased but operating profit was ¥704 million (up ¥10 million, or 1.6%, year on year), and partly as a result of the impact of currency fluctuations, ordinary profit was ¥766 million (down ¥425 million, or 35.7%, year on year), and profit attributable to owners of parent was ¥139 million (down ¥600 million, or 81.2%, year on year).
Performance by segment is as follows.
(Japan)
Net sales amounted to ¥12,366 million (up ¥553 million, or 4.7%, year on year), and segment profit (operating profit) was ¥1,922 million (down ¥165 million, or 7.9%, year on year).
Sales of products for the transport market, such as roads and railways, for office buildings and for the educational market grew, causing net sales for the entire segment to increase. Although net sales increased, the increase in operating expenses caused segment profit to decrease.
- 2 -
(Asia & Pacific)
Net sales amounted to ¥5,033 million (up ¥394 million, or 8.5%, year on year), and segment profit (operating profit) was ¥1,009 million (up ¥191 million, or 23.4%, year on year).
In Vietnam, progress was made on deliveries to large-scale urban development projects and government agencies, and net sales increased. Progress was made on deliveries to sports facilities in Indonesia and to railway facilities, the educational market and commercial facilities in Thailand. Net sales for the entire segment increased and segment profit also increased, partly as a result of the impact of currency fluctuations.
(Europe, Middle East & Africa)
Net sales amounted to ¥3,141 million (up ¥22 million, or 0.7%, year on year), and segment profit (operating profit) was ¥401 million (down ¥3 million, or 0.8%, year on year).
Progress was made on deliveries to railway facilities in the UK, to government agencies in the Middle East, and to office buildings and sports facilities in Africa. There was a lull in activity in European markets, such as Germany, but with the contribution from the impact from currency fluctuations, net sales increased for the segment as a whole. Although net sales increased, the increase in operating expenses caused segment profit to decrease.
(The Americas)
Net sales amounted to ¥1,397 million (up ¥110 million, or 8.6%, year on year), and segment profit (operating profit) was ¥155 million (up ¥72 million, or 86.3%, year on year).
Progress was made on deliveries to retails stores in the United States, and to hospitals in Canada. Net sales for the entire segment increased and segment profit also increased, partly as a result of the impact of currency fluctuations.
(China & East Asia)
Net sales amounted to ¥831 million (down ¥202 million, or 19.6%, year on year), and segment profit (operating profit) to ¥22 million (down ¥67 million, or 75.4%, year on year).
Progress was made to government agencies in Hong Kong. Progress also continued to be made on deliveries to factories, particularly for semiconductors, in Taiwan. However, as a result of the reactive lull caused by the large revenue related to deliveries in the six months ended September 30, 2023, net sales declined. Net sales for the entire segment decreased and segment profit also decreased, partly as a result of the impact of the slowing pace of sales due to doldrums in real estate market in China.
- Overview of Financial Position for the Period Under Review
-
Assets, Liabilities and Net Assets
Total assets at the end of the six months ended September 30, 2024 increased by ¥136 million from the end of the previous fiscal year to ¥64,871 million. Assets increased due mainly to increases in cash and deposits, inventories and investment securities, despite decreases in trade receivables, etc. Liabilities and net assets increased due mainly to an increase in foreign currency translation adjustment, despite a decrease in trade payables, a decrease in retained earnings due to payment of dividends and a decrease in income taxes payable, etc. - 3 -
-
Assets, Liabilities and Net Assets
-
Cash Flows
As of September 30, 2024, cash and cash equivalents (hereinafter "net cash") increased by ¥410 million from the end of the previous fiscal year to ¥14,501 million. Net cash provided by operating activities amounted to ¥1,130 million, net cash used in investing activities amounted to ¥491 million, and net cash used in financing activities amounted to ¥1,146 million. Net cash also increased due to the effect of exchange rate change on cash and cash equivalents. The status of cash flows and their contributing factors during the six months ended September 30, 2024 are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities increased by ¥1,130 million due to the decrease in trade receivables of ¥1,811 million, despite the decrease in trade payables of ¥854 million.
(Cash flows from investing activities)
Net cash used in investing activities amounted to ¥491 million. This was mainly attributable to ¥349 million in purchase of non-current assets including production facilities and an IT infrastructure platform, and an outflow of ¥125 million from the net of payment into and withdrawal from time deposits.
(Cash flows from financing activities)
Net cash used in financing activities amounted to ¥1,146 million. This was mainly attributable to ¥600 million of dividends paid, ¥241 million of repayments of finance lease liabilities, and a ¥213 million decrease in short-term borrowings.
-
Cash Flows
- Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information
The financial results forecast for the fiscal year ending March 31, 2025 has not been revised from the initial forecast announced in "Consolidated Financial Results for the Fiscal Year Ended March 31, 2024."
- 4 -
2. Semi-annual Consolidated Financial Statements and Significant Notes Thereto
(1) Semi-annual consolidated balance sheet
(Millions of yen) | |||
As of March 31, 2024 | As of September 30, 2024 | ||
Assets | |||
Current assets | |||
Cash and deposits | 16,350 | 17,096 | |
Notes and accounts receivable - trade, and contract | 10,476 | 8,970 | |
assets | |||
Merchandise and finished goods | 8,937 | 9,301 | |
Work in process | 789 | 904 | |
Raw materials and supplies | 5,126 | 5,270 | |
Other | 1,048 | 1,178 | |
Allowance for doubtful accounts | (95) | (99) | |
Total current assets | 42,633 | 42,622 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 5,933 | 5,840 | |
Other | 4,714 | 4,721 | |
Total property, plant and equipment | 10,648 | 10,561 | |
Intangible assets | 1,669 | 1,582 | |
Investments and other assets | |||
Investment securities | 8,170 | 8,425 | |
Other | 1,614 | 1,679 | |
Allowance for doubtful accounts | (0) | - | |
Total investments and other assets | 9,784 | 10,104 | |
Total non-current assets | 22,101 | 22,248 | |
Total assets | 64,734 | 64,871 |
- 5 -
(Millions of yen) | |||
As of March 31, 2024 | As of September 30, 2024 | ||
Liabilities | |||
Current liabilities | |||
Notes and accounts payable - trade | 3,554 | 2,811 | |
Short-term borrowings | 1,836 | 1,681 | |
Income taxes payable | 579 | 276 | |
Provisions | 271 | 244 | |
Other | 3,336 | 2,842 | |
Total current liabilities | 9,578 | 7,856 | |
Non-current liabilities | |||
Retirement benefit liability | 3,089 | 3,180 | |
Other | 2,827 | 2,950 | |
Total non-current liabilities | 5,917 | 6,131 | |
Total liabilities | 15,495 | 13,987 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 5,279 | 5,279 | |
Capital surplus | 5,048 | 5,051 | |
Retained earnings | 32,863 | 32,401 | |
Treasury shares | (3,679) | (3,666) | |
Total shareholders' equity | 39,512 | 39,065 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 4,807 | 4,983 | |
Foreign currency translation adjustment | 2,321 | 4,090 | |
Remeasurements of defined benefit plans | (58) | (52) | |
Total accumulated other comprehensive income | 7,070 | 9,022 | |
Non-controlling interests | 2,655 | 2,795 | |
Total net assets | 49,239 | 50,883 | |
Total liabilities and net assets | 64,734 | 64,871 |
- 6 -
- Semi-annualconsolidated statement of income and consolidated statement of comprehensive income
Semi-annual consolidated statement of income
(Millions of yen) | ||
Six months ended | Six months ended | |
September 30, 2023 | September 30, 2024 | |
Net sales | 21,891 | 22,769 |
Cost of sales | 12,793 | 12,997 |
Gross profit | 9,098 | 9,772 |
Selling, general and administrative expenses | 8,404 | 9,067 |
Operating profit | 693 | 704 |
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity method
Other
46 | 77 |
64 | 69 |
343 | - |
6 | - |
77 | 119 |
538 | 265 |
31 | 43 |
- | 150 |
- | 1 |
8 | 8 |
Total non-operating expenses | 40 | 203 | |
Ordinary profit | 1,191 | 766 | |
Profit before income taxes | 1,191 | 766 | |
Income taxes | 302 | 453 | |
Profit | 889 | 312 | |
Profit attributable to non-controlling interests | 149 | 173 | |
Profit attributable to owners of parent | 739 | 139 |
- 7 -