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 Nine Months Ended December 31, 2024 | |
(Under Japanese GAAP) | |
February 3, 2025 | |
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 nine months ended December 31, 2024 (from April 1, 2024 to December 31, 2024)
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Nine months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |
December 31, 2024 | 35,870 | 4.3 | 1,807 | (9.2) | 2,248 | (7.8) | 1,289 | (17.2) | |
December 31, 2023 | 34,389 | 9.0 | 1,990 | 225.1 | 2,438 | 181.2 | 1,558 | 77.0 | |
Note: Comprehensive income | For the nine months ended December 31, 2024: | ¥2,521 million | [(32.3)%] | |||
For the nine months ended December 31, 2023: | ¥3,723 million | [17.5%] | ||||
Basic earnings | Diluted earnings | |||||
per share | per share | |||||
Nine months ended | Yen | Yen | ||||
December 31, 2024 | 42.91 | - | ||||
December 31, 2023 | 48.43 | - | ||||
(2) Consolidated financial position
Total assets | Net assets | |
As of | Millions of yen | Millions of yen |
December 31, 2024 | 65,969 | 50,368 |
March 31, 2024 | 64,734 | 49,239 |
Reference: Equity | ||
As of December 31, 2024: | ¥47,598 million | |
As of March 31, 2024: | ¥46,583 million |
Equity-to-asset ratio
%
72.2
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 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 December 31, 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 December 31, 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)
Nine months ended December 31, 2024
Nine months ended December 31, 2023
30,064,008 shares
32,174,661 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 nine months ended December 31, 2024, in the environment surrounding TOA Corporation (hereinafter "the Company") and its subsidiaries (collectively, the "Group"), an increase in inbound demand, 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 nine months ended December 31, 2024, the Group acquired all of the issued shares of PA- Vox Holding B.V. (hereinafter "PAX") in the Netherlands in September 2024, thereby making four companies, which includes the three operating companies under PAX, consolidated subsidiaries. Each operating company is a business with advanced solutions for providing automated multilingual announcement content in 36 languages for airport facilities and airline companies. In addition to having technology for generating easy-to-hear sound sources in the airport market, this company has the capability of developing high-quality software, a subscription business targeting the airport market and other strengths not found at other companies. By adding PAX to the Group, we expect to generate a synergistic effect with the high-quality hardware for the airport market that is the Company's area of expertise, and expand the business for the Europe, Middle East & Africa region, thereby expanding the Group's entire business for providing systems for the airport market worldwide. We revised the prices of some products in Japan in December 2024 as a measure in response to the ongoing increases in raw material costs, personnel expenses, logistics costs and other costs. We will strengthen our revenue base based on these initiatives and accelerate growth through the pursuit and creation of new growth areas.
In these circumstances, net sales during the nine months ended December 31, 2024 were ¥35,870 million (up ¥1,481 million, or 4.3%, year on year). In terms of profits, although net sales increased, due to the increase in operating expenses, operating profit was ¥1,807 million (down ¥183 million, or 9.2%, year on year), ordinary profit was ¥2,248 million (down ¥190 million, or 7.8%, year on year), and profit attributable to owners of parent was ¥1,289 million (down ¥268 million, or 17.2%, year on year).
Performance by segment is as follows.
(Japan)
Net sales amounted to ¥20,520 million (up ¥1,217 million, or 6.3%, year on year), and segment profit (operating profit) was ¥4,101 million (up ¥191 million, or 4.9%, year on year).
Sales of products for the transport market, such as roads and railway facilities, for the educational market and for factories grew, causing net sales for the entire segment and segment profit to rise.
(Asia & Pacific)
Net sales amounted to ¥7,310 million (up ¥472 million, or 6.9%, year on year), and segment profit (operating profit) was ¥1,369 million (up ¥49 million, or 3.8%, year on year).
- 2 -
In Vietnam, progress was made on deliveries to large-scale urban development projects and commercial facilities, and market conditions in Singapore were improved. As a result, net sales increased. Progress was made on deliveries to sports facilities in Indonesia and to the educational market, religious facilities, and railway 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 ¥4,598 million (down ¥159 million, or 3.3%, year on year), and segment profit (operating profit) to ¥537 million (down ¥135 million, or 20.1%, year on year).
Although progress was made on deliveries to railway facilities in the UK, to government agencies and the educational market in the Middle East, and to office buildings in Africa, there was a lull in activity in Germany and other European markets. As a result, net sales for the entire segment and segment profit decreased.
(The Americas)
Net sales amounted to ¥2,066 million (up ¥74 million, or 3.7%, year on year), and segment profit (operating profit) was ¥181 million (up ¥37 million, or 26.3%, 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 ¥1,374 million (down ¥123 million, or 8.2%, year on year), and segment profit (operating profit) to ¥115 million (down ¥20 million, or 15.2%, year on year).
As progress was made to government agencies in Hong Kong, net sales increased. Progress also continued to be made on deliveries to factories, particularly for semiconductors, in Taiwan. 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
Total assets at the end of the nine months ended December 31, 2024 increased by ¥1,234 million from the end of the previous fiscal year to ¥65,969 million. Assets increased due mainly to increases in inventories, goodwill and investment securities, despite decreases in cash and deposits, etc. Liabilities and net assets increased due mainly to increases in trade payables and valuation difference on available-for-sale securities. - 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."
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2. Quarterly Consolidated Financial Statements and Significant Notes Thereto
(1) Quarterly consolidated balance sheet
(Millions of yen) | |||
As of March 31, 2024 | As of December 31, 2024 | ||
Assets | |||
Current assets | |||
Cash and deposits | 16,350 | 15,445 | |
Notes and accounts receivable - trade, and contract | 10,476 | 10,077 | |
assets | |||
Merchandise and finished goods | 8,937 | 9,539 | |
Work in process | 789 | 923 | |
Raw materials and supplies | 5,126 | 5,089 | |
Other | 1,048 | 1,591 | |
Allowance for doubtful accounts | (95) | (100) | |
Total current assets | 42,633 | 42,566 | |
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures, net | 5,933 | 5,711 | |
Other | 4,714 | 4,646 | |
Total property, plant and equipment | 10,648 | 10,357 | |
Intangible assets | |||
Goodwill | 419 | 847 | |
Other | 1,249 | 1,521 | |
Total intangible assets | 1,669 | 2,369 | |
Investments and other assets | |||
Investment securities | 8,170 | 9,063 | |
Other | 1,614 | 1,611 | |
Allowance for doubtful accounts | (0) | - | |
Total investments and other assets | 9,784 | 10,675 | |
Total non-current assets | 22,101 | 23,402 | |
Total assets | 64,734 | 65,969 |
- 4 -
(Millions of yen) | |||
As of March 31, 2024 | As of December 31, 2024 | ||
Liabilities | |||
Current liabilities | |||
Notes and accounts payable - trade | 3,554 | 3,854 | |
Short-term borrowings | 1,836 | 1,957 | |
Income taxes payable | 579 | 163 | |
Provisions | 271 | 378 | |
Other | 3,336 | 3,058 | |
Total current liabilities | 9,578 | 9,411 | |
Non-current liabilities | |||
Retirement benefit liability | 3,089 | 3,212 | |
Other | 2,827 | 2,977 | |
Total non-current liabilities | 5,917 | 6,189 | |
Total liabilities | 15,495 | 15,600 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 5,279 | 5,279 | |
Capital surplus | 5,048 | 5,051 | |
Retained earnings | 32,863 | 32,951 | |
Treasury shares | (3,679) | (3,666) | |
Total shareholders' equity | 39,512 | 39,615 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 4,807 | 5,427 | |
Foreign currency translation adjustment | 2,321 | 2,606 | |
Remeasurements of defined benefit plans | (58) | (50) | |
Total accumulated other comprehensive income | 7,070 | 7,982 | |
Non-controlling interests | 2,655 | 2,770 | |
Total net assets | 49,239 | 50,368 | |
Total liabilities and net assets | 64,734 | 65,969 |
- 5 -
- Quarterly consolidated statement of income and consolidated statement of comprehensive income Quarterly consolidated statement of income (cumulative)
(Millions of yen) | ||
Nine months ended | Nine months ended | |
December 31, 2023 | December 31, 2024 | |
Net sales | 34,389 | 35,870 |
Cost of sales | 19,656 | 20,188 |
Gross profit | 14,733 | 15,682 |
Selling, general and administrative expenses | 12,742 | 13,874 |
Operating profit | 1,990 | 1,807 |
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
79 | 112 |
128 | 140 |
218 | 125 |
5 | - |
Other | 121 | 137 |
Total non-operating income | 554 | 516 |
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Loss on tax purpose reduction entry of non-current assets
Other
67 | 62 |
- | 0 |
25 | - |
12 | 11 |
Total non-operating expenses | 106 | 75 | |
Ordinary profit | 2,438 | 2,248 | |
Profit before income taxes | 2,438 | 2,248 | |
Income taxes | 661 | 693 | |
Profit | 1,776 | 1,555 | |
Profit attributable to non-controlling interests | 218 | 265 | |
Profit attributable to owners of parent | 1,558 | 1,289 |
- 6 -
Quarterly consolidated statement of comprehensive income (cumulative)
(Millions of yen) | ||
Nine months ended | Nine months ended | |
December 31, 2023 | December 31, 2024 | |
Profit | 1,776 | 1,555 |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | 29 | 619 |
Foreign currency translation adjustment | 1,912 | 337 |
Share of other comprehensive income of entities | 0 | 0 |
accounted for using equity method | ||
Remeasurements of defined benefit plans, net of tax | 4 | 8 |
Total other comprehensive income | 1,946 | 966 |
Comprehensive income | 3,723 | 2,521 |
Comprehensive income attributable to | ||
Comprehensive income attributable to owners of parent | 3,487 | 2,201 |
Comprehensive income attributable to non-controlling | 236 | 319 |
interests | ||
- 7 -