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, 2024 | |
(Under Japanese GAAP) | |
August 2, 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 commence dividend payments: | - |
Preparation of supplementary material on financial results: | Yes |
Holding of 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, 2024 (from April 1, 2024 to June 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 | ||||||||||||||
Three months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||
June 30, 2024 | 10,979 | 9.3 | (91) | - | 104 | (38.7) | (112) | - | ||||||
June 30, 2023 | 10,042 | 10.5 | (114) | - | 169 | - | (63) | - | ||||||
Note: Comprehensive income | For the three months ended June 30, 2024: | ¥1,075 million | [(10.7)%] | |||||||||||
For the three months ended June 30, 2023: | ¥1,204 million | [10.5%] | ||||||||||||
Basic earnings | Diluted earnings | |||||||||||||
per share | per share | |||||||||||||
Three months ended | Yen | Yen | ||||||||||||
June 30, 2024 | (3.75) | - | ||||||||||||
June 30, 2023 | (1.96) | - | ||||||||||||
(2) Consolidated financial position
Total assets | Net assets | |
As of | Millions of yen | Millions of yen |
June 30, 2024 | 64,028 | 49,508 |
March 31, 2024 | 64,734 | 49,239 |
Reference: Equity | ||
As of June 30, 2024: | ¥46,758 million | |
As of March 31, 2024: | ¥46,583 million |
Equity-to-asset ratio
%
73.0
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 | - | ||||||
March 31, 2025 | |||||||
Fiscal year ending | 20.00 | - | 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 quarterly 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 June 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 June 30, 2024
As of March 31, 2024
4,080,321 shares
4,080,281 shares
- Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2024
Three months ended June 30, 2023
30,056,337 shares
32,165,980 shares
- Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit corporation: None
- 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 material on financial results is scheduled to be posted on our website.
- 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 . 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 | |
(Notes on accounting policies specific to the preparation of quarterly consolidated | ||
financial statements) | 8 | |
(Notes on change in accounting policy) | 8 | |
(Notes on quarterly consolidated statement of cash flows) | 8 | |
(Notes on segment information, etc.) | 9 |
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1. Overview of Operating Results, Etc.
-
Overview of Operating Results for the Period Under Review
During the three months ended June 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 three months ended June 30, 2024, we collaborated with multiple local government entities and conducted demonstration test projects by using AI-equipped cameras installed together with speakers. In demonstration test projects on sidewalks, bicycles being ridden on the sidewalks were detected using AI, and messages encouraging the riders to ride safely were automatically broadcast. Furthermore, in demonstration test projects in busy areas, the number of persons within the area visible by a camera was counted using AI, and if the number of persons present exceeded a certain threshold, a sound was broadcast indicating that touting to attract customers was prohibited. Through these demonstration test projects, we will proceed with examining use methodologies for digital technology with the aim of contributing to the promotion of safe, secure and comfortable urban development.
In these circumstances, net sales during the three months ended June 30, 2024 were ¥10,979 million (up ¥937 million, or 9.3%, year on year). In terms of profits, operating expenses increased but operating profit was negative ¥91 million (up ¥22 million year on year), and due to a decrease in foreign exchange gains, ordinary profit was ¥104 million (down ¥65 million, or 38.7%, year on year), and profit attributable to owners of parent was negative ¥112 million (down ¥49 million year on year).
Performance by segment is as follows.
(Japan)
Net sales amounted to ¥5,630 million (up ¥859 million, or 18.0%, year on year), and segment profit (operating profit) was ¥567 million (up ¥74 million, or 15.2%, year on year).
Sales of products for the transport market, such as roads and railways, for factories and for the educational market grew, causing net sales for the entire segment and segment profit to rise.
(Asia & Pacific)
Net sales amounted to ¥2,937 million (up ¥290 million, or 11.0%, year on year), and segment profit (operating profit) was ¥581 million (up ¥25 million, or 4.7%, year on year).
In Indonesia, sales to the religious market were solid as a result of efforts to capture demand related to Ramadan. In addition, progress was made on deliveries to large-scale urban development projects in Vietnam and the railways, educational market and commercial facilities in Thailand. As a result of those and other factors, net sales for the entire segment increased, and segment profit rose.
- 2 -
(Europe, Middle East & Africa)
Net sales amounted to ¥1,377 million (down ¥96 million, or 6.5%, year on year), and segment profit (operating profit) to ¥63 million (down ¥83 million, or 56.9%, year on year).
Although progress was made on deliveries to sports facilities in Africa, bad weather caused construction delays in Germany and Austria. These and other factors caused net sales for the entire segment and segment profit to decrease.
(The Americas)
Net sales amounted to ¥634 million (down ¥17 million, or 2.7%, year on year), and segment profit (operating profit) to ¥31 million (down ¥23 million, or 42.8%, year on year).
Sales declined for deliveries to small retail stores in the United States and for the educational market in Canada. As a result of those and other factors, net sales for the entire segment and segment profit decreased.
(China & East Asia)
Net sales amounted to ¥399 million (down ¥98 million, or 19.8%, year on year), and segment profit (operating profit) to ¥2 million (down ¥44 million, or 94.2%, year on year).
Sales increased in Hong Kong due to progress made on deliveries to government agencies, etc., while sales in China were sluggish due to stagnant market conditions associated with a slump in the real estate market. As a result of those and other factors, net sales for the entire segment and segment profit decreased.
-
Overview of Financial Position for the Period Under Review
Total assets at the end of the three months ended June 30, 2024 decreased ¥706 million from the end of the previous fiscal year to ¥64,028 million. Assets decreased due mainly to decreases in cash and deposits and trade receivables, despite increases in inventories and investment securities, etc. Liabilities and net assets decreased due mainly to a decline in retained earnings mainly resulting from the payment of dividends and a decline in accounts payable - other and trade payables, despite an increase in foreign currency translation adjustment, etc. - 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."
- 3 -
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto
(1) Quarterly consolidated balance sheet
(Millions of yen) | |||
As of March 31, 2024 | As of June 30, 2024 | ||
Assets | |||
Current assets | |||
Cash and deposits | 16,350 | 15,623 | |
Notes and accounts receivable - trade, and contract | 10,476 | 8,942 | |
assets | |||
Merchandise and finished goods | 8,937 | 9,783 | |
Work in process | 789 | 876 | |
Raw materials and supplies | 5,126 | 5,220 | |
Other | 1,048 | 1,425 | |
Allowance for doubtful accounts | (95) | (85) | |
Total current assets | 42,633 | 41,786 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 5,933 | 5,888 | |
Other | 4,714 | 4,752 | |
Total property, plant and equipment | 10,648 | 10,640 | |
Intangible assets | 1,669 | 1,642 | |
Investments and other assets | |||
Investment securities | 8,170 | 8,286 | |
Other | 1,614 | 1,672 | |
Allowance for doubtful accounts | (0) | - | |
Total investments and other assets | 9,784 | 9,959 | |
Total non-current assets | 22,101 | 22,242 | |
Total assets | 64,734 | 64,028 |
- 4 -
(Millions of yen) | |||
As of March 31, 2024 | As of June 30, 2024 | ||
Liabilities | |||
Current liabilities | |||
Notes and accounts payable - trade | 3,554 | 3,233 | |
Short-term borrowings | 1,836 | 1,788 | |
Income taxes payable | 579 | 281 | |
Provisions | 271 | 161 | |
Other | 3,336 | 3,009 | |
Total current liabilities | 9,578 | 8,475 | |
Non-current liabilities | |||
Retirement benefit liability | 3,089 | 3,152 | |
Other | 2,827 | 2,891 | |
Total non-current liabilities | 5,917 | 6,044 | |
Total liabilities | 15,495 | 14,519 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 5,279 | 5,279 | |
Capital surplus | 5,048 | 5,048 | |
Retained earnings | 32,863 | 32,149 | |
Treasury shares | (3,679) | (3,679) | |
Total shareholders' equity | 39,512 | 38,798 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 4,807 | 4,887 | |
Foreign currency translation adjustment | 2,321 | 3,127 | |
Remeasurements of defined benefit plans | (58) | (55) | |
Total accumulated other comprehensive income | 7,070 | 7,959 | |
Non-controlling interests | 2,655 | 2,750 | |
Total net assets | 49,239 | 49,508 | |
Total liabilities and net assets | 64,734 | 64,028 |
- 5 -
- Quarterly consolidated statement of income and consolidated statement of comprehensive income Quarterly consolidated statement of income (cumulative)
(Millions of yen) | ||
Three months ended | Three months ended | |
June 30, 2023 | June 30, 2024 | |
Net sales | 10,042 | 10,979 |
Cost of sales | 5,973 | 6,587 |
Gross profit | 4,069 | 4,392 |
Selling, general and administrative expenses | 4,183 | 4,484 |
Operating loss | (114) | (91) |
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
13 | 36 |
63 | 69 |
201 | 100 |
1 | - |
Other | 34 | 22 |
Total non-operating income | 313 | 228 |
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Other
22 | 23 |
- | 1 |
5 | 8 |
Total non-operating expenses | 28 | 32 | |
Ordinary profit | 169 | 104 | |
Profit before income taxes | 169 | 104 | |
Income taxes | 145 | 142 | |
Profit (loss) | 23 | (38) | |
Profit attributable to non-controlling interests | 87 | 74 | |
Loss attributable to owners of parent | (63) | (112) |
- 6 -
Quarterly consolidated statement of comprehensive income (cumulative)
(Millions of yen) | ||
Three months ended | Three months ended | |
June 30, 2023 | June 30, 2024 | |
Profit (loss) | 23 | (38) |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | 729 | 80 |
Foreign currency translation adjustment | 449 | 1,030 |
Share of other comprehensive income of entities | (0) | (0) |
accounted for using equity method | ||
Remeasurements of defined benefit plans, net of tax | 0 | 2 |
Total other comprehensive income | 1,180 | 1,113 |
Comprehensive income | 1,204 | 1,075 |
Comprehensive income attributable to | ||
Comprehensive income attributable to owners of parent | 805 | 776 |
Comprehensive income attributable to non-controlling | 399 | 299 |
interests | ||
- 7 -