Message to Shareholders and Investors

The current economic environment surrounding the Company here in Japan is showing signs of recovery due to increased demand from inbound tourism, a rising willingness for capital investment, and improvements in employment and income. On the other hand, the outlook for the global economy remains uncertain due to the high cost of raw materials and a general rise in prices, geopolitical risks due to international instability, as well as trends in economic policies by the new administration in the U.S. and rapid fluctuations in exchange rates.

Against this backdrop, consolidated net sales for the fiscal year ended March 31, 2025, increased 3.7% year-on-year to a record high of 50,626 million yen as general industrial-use broadcasting equipment sales were strong in Japan and earnings were strong in three of our overseas regions, excluding China & East Asia, while operating profit rose 18.5% to 3,589 million yen, marking an increase in both revenue and profit.

The Company is currently in the final year of its five-year Medium-term Management Plan (from the fiscal year ended March 31, 2022 to the fiscal year ending March 31, 2026) and is working to accelerate growth through the three priority strategies of expanding regional businesses and global partnerships, strengthening our revenue base through a “connected business” model, and exploring and creating new growth areas.

In regional business expansion, we are working to grow our profits by optimizing our product range and improving global efficiency in our production, logistics, and engineering systems across five regions worldwide. Regarding the connected business model, we are working on the development of systems for the efficient linking of information collected across different departments within the company to enhance our support systems, increase our aggregation and analysis capability, and create high added value solutions. To explore new growth areas, we view the entire World Expo site of Expo 2025 Osaka, Kansai, as a City of the Future and are working on forms of transmission to deliver necessary information at the right time as well as systems for overall venue production such as background music and events as our way of taking on the challenge of implementing these in future societies. In September 2024, we made PAX^* in the Netherlands a subsidiary and anticipate business growth in broadcasting systems for the global airport market as well as expansion into other markets.

To implement this series of initiatives efficiently and steadily, the Digital Transformation Division was established in April 2025 to oversee company-wide automation and streamlining of operations as well as the creation of demand using digital marketing, something previously done by individual departments. Through this Division, we will accelerate our shift to digital and explore systems unique to TOA that will maximize the value we offer.

For the fiscal year ending March 2026, we anticipate record highs of 54.5 billion yen in net sales and 4.5 billion yen in operating profit. We will also boost dividends to shareholders while maintaining our basic approach of investing in businesses that will lead to future growth, with an anticipated dividend of 42 yen.

We will actively create opportunities for investor dialogue, increase transparency in management, and use feedback from investors to help solve management issues. We hope that we can continue to count on your understanding and support going forward.

TANIGUCHI Masahiro, TOA President, CEO

* PAX: PA-Vox Holding B.V.