Financial Results Briefing for the Second Quarter of theFiscal Year Ending March 31, 2024

TOA Corporation
Securities Code: 6809

Future Outlook• The information disclosed by the Company may include matters related to the future outlook.
Forecasts are based on information available at the time of publication, and the results may differ
significantly depending on economic conditions and other factors. The Company makes every
effort to improve the accuracy of its future outlook and disclose any changes as appropriate.
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• While every effort has been made to ensure the accuracy of the information contained herein, theCompany does not guarantee or take responsibility for the accuracy of the information.

2FINANCIAL RESULTS FOR THE SECOND QUARTER
OF THE FISCAL YEAR ENDING MARCH 31, 20243

Performance in the Second Quarter of the FY Ending March 31, 2024
(Changes from Previous Fiscal Year)
Segment

Net sales

Operating profit

Japan

Increased revenue

Increased profit

Asia & Pacific

Increased revenue

Increased profit

Europe, Middle East & Africa

Increased revenue

Increased profit

The Americas

Increased revenue

Became profitable

China & East Asia

Increased revenue

Increased profit

Group total

Increased revenue

Increased profit

4Performance in the Second Quarter of the FY Ending March 31, 2024
(Consolidated)(Million yen)

5,000
25,0004,000
20,00015,000
3,000
2,000
1,000
0
-1,000
Secondquarter of2Q
the FY2021.3⽉期
ended March 31, 2021

Secondquarter 2Qof the FY
2022.3⽉期
ended March 31, 2022

Secondquarter2Qof the FY
2023.3⽉期
ended March 31, 2023

17,666

18,937

20,307■ Operating profit-3274845693 (+1440.0%)■ Ordinary profit

53822

456

1,191 (+161.0%)■ Net profit*-155

460

629

739 (+17.5%)■ Net sales*Profit attributable to owners of parent

Second quarterof the FY
2024.3⽉期
2Q
ending March 31, 2024
21,891 (+7.8%)

Percentages indicate year-on-year change.

5Net Sales in the Second Quarter of the FY Ending March 31, 2024 by Regional Segment(Million yen)

30,000

Performance in thesecond quarter of the fiscal year

25,00020,00015,00020,307
1,004
1,155
2,586
4,172

21,891
1,033
1,287

4,638

0

Annual numerical forecast

60,00050,000
40,000

3,119

10,0005,000(Million yen)

30,00040,864
1,851
2,081
4,518
6,418

45,123
1,922
2,536
5,468

8,368

49,000
2,000
2,700

6,100
9,700

20,00011,387

11,812

Second quarter of theFY ended
March 31, 2023

Second quarter of theFY ending
March 31, 2024

10,000-25,994

26,82728,500FY ended
March 31, 2022

FY ended
March 31, 2023

Forecast for the FY
endingMarch 31, 2024

■Japan ■Asia & Pacific ■Europe, Middle East & Africa ■The Americas ■China & East Asia
6

Net Sales in the Second Quarter of the FY Ending March 31, 2024 by Product Category(Million yen)

30,000

Performance in thesecond quarter of the fiscal year

25,00020,00021,891
20,3071,262
2,440

15,000338
2,910(Million yen)

60,00040,00040,864
1,584

45,123
1,814

18,63030,00033,161

1,100
7,100

6,274

6,097

10,000049,00050,00016,5935,000

Annual numerical forecast

37,01140,80020,000Overseas
8,918

Second quarter of theFY ended
March 31, 2023

Overseas
9,512

10,000-

Second quarter of theFY ending
March 31, 2024

Overseas
14,869FY ended
March 31, 2022■ Audio ■ Video ■ Railway cars
7Overseas
18,289FY ended
March 31, 2023

Overseas
20,500

Forecast for the FYending
March 31, 2024

New Products Launched to Increase Sales• IP Audio Series expansion
IPcameraMotion
sensor

IP-A1MP Microphone Panel

IP-A1PA12 IP Power Amplifier

IP-A1RM IP Remote Microphone
Simple to use and easy to operatewith various functions available•

Linking to various devices and systems over networks, automatic broadcasting triggered by IoT sensors and AI sensing is possible.
Broadcast operations can be simplified, contributing to more efficient facility operations and the reduction of labor.

•In September 2023, three new models were launched, including a remote microphone, to support a wider range of work environments andoperational practices.

•Our goal in all five regional segments is to offer new means of communication, develop new distribution channels and expand sales.
8Initiatives to Address Rising Costs
Purchasing

We are visualizing the status by categorizing the importanceand risk of products and parts.
→ We are increasing sales with a stable supply of products.

Parts availability issues have peaked and are easing.
Cost increases due to rising prices, currency effects, etc. willcontinue.

We are standardizing parts and coordinating global purchasing.
→ We are enabling centralized purchasing to promote cost
reduction.

Sales

We are intensifying cross-departmental collaboration to clarify
products and quantities to be sold.
→ We are thoroughly managing production and sales to reduceinventory.

Parts, especially electronic parts, have long lead times.
Inventory has increased due to the longer lead times.

Logistics
Requests have been received for increases in shipping rates inJapan.
Container prices are trending down, but are not expected toreturn to pre-COVID-19 pandemic levels.

We are examining shipping methods and lead times.
We are reducing container volume while controlling inventory.
→ We are reducing shipping costs.

We revised prices in Japan in April 2022 and July 2023, and overseas as appropriate based on market conditions.
We plan to reduce costs and increase profits by more closely coordinating the purchasing, production, logistics and sales
functions.
9Change in R&D Expenses, Capital Investment and Depreciation Expenses(Consolidated)(Million yen)

Second quarter of FYended March 31, 2023

Second quarter of FY
ending March 31, 2024

Change(year-on-year)

R&D expenses

1,413

1,433+20

Capital investment922

648-274

Depreciation expenses

714

777+63• The decrease in capital investment is due to the development of information system infrastructure in
the same quarter of the previous fiscal year.
10Earnings Forecast (Consolidated)(Million yen)

60,00010,000Earnings forecast revised upward

50,0008,000
40,000
6,000
4,000
2,000
0
FY ended
2021.3⽉期
期末
March 31, 2021

FY ended
2022.3⽉期
期末
March 31, 2022

FY ended
2023.3⽉期
期末
March 31, 2023

Forecast for the FY
ending March 31, 2024

Net sales

40,57540,864

45,12349,000Operating profit

2,293

2,159

1,713

2,800

Ordinary profit

2,558

2,407

2,104

3,300

Net profit*

1,596

1,466

1,765

1,600

*Profit attributable to owners of parent

11Dividend Forecast for the FY Ending March 31, 2024
Set a target consolidated dividend payout ratio of 45%
considering performance and a stable dividend of 40 yen(Yen)

7060
50

48.87 yen

54.51 yen
45.08 yen

40

*Dividend
40 yen payout ratio:73.4%

3020
10049.73 yen*Dividend
20 yen payout ratio:
40.9%

FY ended
March 31, 2021

40 yen*Dividend
payout ratio:
80.4%

Stable dividend(paid per share)
Basic earnings
per share*Dividend
20 yen payout ratio:
44.4%

FY ended
March 31, 2022

FY ended
March 31, 2023

Forecast for the FY ending
March 31, 2024

• Net profit in the earnings forecast for the FY ending March 31, 2024 is expected to be 1.6 billion
yen, and the dividend payout ratio is expected to be 80.4% based on a stable dividend of 40 yen.
12

OVERVIEW OF THE SECOND QUARTER
OF THE FISCAL YEAR ENDING MARCH 31, 2024
FOR 5 REGIONAL SEGMENTS

13

Japan Segment
Overview

Second quarterof the FY ending
March 31, 2024

Change(year-on-year)

Net sales

11,812+424

Operatingprofit

2,087+324(Million yen)

• Plants
We delivered many large broadcast systems, with an increased number ofprojects, primarily in the semiconductor industry.

• Education facilities
We received large orders for school security cameras due to steady demand forequipment renewal during the summer holiday.

• Commercial facilities
Sales of general-purpose broadcast systems increased due to growing demandfor equipment renewal.

• Transportation infrastructure facilities
We delivered remote broadcast systems for railroad stations to support labor
reducing initiatives and uncrewed operations• Municipal facilities
Demand for COVID-19 pandemic support is trending downward, and we
experienced an associated decrease from the same period of the previous year.
14Transportation infrastructure facilities: We supported
labor reduction and uncrewed station operations
with fast and accurate information communication
through easy-to-use systems

Japan Segment
Topic• New development
Collaboration with other companies
through IP Audio Series products

Opening of virtual showroom

IntruderActively developed new partnerships with companies focused on IoT
device system integrators that are a good fit for SIP phones and VMSsoftware.
• Expanded into new security systems, working with IP-PBX from Brekeke
Japan, Inc. and speech synthesis-related technology from AI Inc.
• We responded to a wide range of customer needs such as increased
business efficiency and labor savings by building diverse and highly
flexible systems.
•15

TOA Connect Showroom has been established by expanding andmaking permanent the contents of the virtual exhibition held inMarch 2023.
• In this Metaverse venue, we showcase a wide range of solutions
created through various collaborations and initiatives to solve socialissues.
• We aim to connect with new stakeholders and become a partner inthe delivery of exceptional experiences.
•Asia & Pacific segment
Overview

Second quarterof the FY ending
March 31, 2024

Change(year-on-year)

Net sales

4,638+465

Operatingprofit818+170(Million yen)

• Indonesia
Strong sales of broadcast systems for the religious facilities market continued
from the previous fiscal year.

• Thailand
We delivered large systems to education facilities, factories, hospitals, etc.

• Vietnam
We supplied broadcast systems for major urban development projects.
We successfully increased sales by winning bids for projects such as
microphone systems for conference use in municipal facilities.

Topic• Commercial facilities
Shopping center and chain store demand increased.
Sales are expected to grow due to successful bids on projects.
16

Commercial facilities: There was growthin demand as tourism recovered.
We received projects expected to generate sales.

Europe, Middle East & Africa segment
Overview• UK
Sales increased with the delivery of broadcast systems to the British Library.

• Germany
Normalization of economic activity has led to increased capital investment.
Sales of emergency broadcast systems, our key product, progressed steadily.

(Million yen)

Second quarterof the FY ending
March 31, 2024

Change(year-on-year)

Net sales

3,119+532

Operatingprofit404+188• South Africa
We delivered large-scale, general-purpose broadcast systems to hospitals andoffices.

Topic• Transportation infrastructure
VX-3000, our key product, acquired marine vessel certification.
We aim to capture demand for emergency broadcast systems on ships as a newmarket.
17

Transportation infrastructure: Our key productacquired marine vessel certification.
We focused on expanding sales of emergency
broadcast systems in the region.

The Americas segment
Overview

Second quarterof the FY ending
March 31, 2024

Change(year-on-year)

Net sales

1,287+132

Operatingprofit83+93(Million yen)

• U.S.
Sales of BGM equipment for stores, our key product, were sluggish.
Delivered broadcast systems to government facilities and education facilities.

• Canada
Strong sales of wireless microphone systems for school classrooms continued.
We delivered microphone systems for conference use in medical andgovernment facilities.

Topic• Crime prevention
We focused on expanding sales of IP speakers for the security market.
We actively participated in exhibitions in Canada and orders are increasing.

18

Crime prevention:
Sales of IP speakers were strong.
It is expected that sales will expand mainlyin the crime prevention market.

China & East Asia segmentOverview

Second quarterof the FY ending
March 31, 2024

Change(year-on-year)

Net sales

1,033+29

Operatingprofit89+2(Million yen)

• China
Economic restrictions due to the spread of infectious diseases have been lifted
and market conditions are recovering.
Sales grew despite the country's initiative to favor domestic brands.

• Taiwan
Sales to factories, mainly semiconductor fabs, remained strong, despite areactionary decline from the previous fiscal year.

• Hong Kong
Sales increased due to large-scale deliveries of broadcast systems to municipal
and religious facilities.

Topic• Office
We strengthened sales to South Korea through new distribution channels.
We focused on expanding sales of microphone systems for conference rooms tofurther increase sales overall.
19

Office: Expanded sales of microphone systems
for conference rooms to South Korea
through new distribution channels.