Top Interview (2/7)
Settlement for the Preceding Term
- Could you please summarize TOA’s settlement for the preceding term (FY 2019 which ended in March of 2020)?
In FY 2019, the second year of our Mid-Term Plan, which ended in March of 2020, we witnessed significant reductions in both our sales and profits. Our sales in Japan’s disaster reduction and prevention markets were good, but overall business results were adversely affected by significant reductions in the number of large projects and intensified competition in both the Europe, Middle East& Africa.
On the other hand, we made aggressive investments to further expand our sales routes in FY 2019. Of particular note was a local Chinese subsidiary, which we established in September of that year through a joint capital investment with the SPON company, a Chinese communications equipment manufacturer that has a strong presence in the local financial and educational markets. One of the central aims of this joint venture was to accelerate product planning and development through marketing in mainland China, where network compatibility of sound systems is quickly developing ahead of other countries.
Moreover, in March of 2020, we acquired all the shares of the Singapore sales company that has played a central role for us in the Asia & Pacific, making it a wholly-owned subsidiary of TOA. We are now making greater efforts than ever before to increase our decision-making speed in the Asia & Pacific, and are also trying to increase our regional business by promoting the expansion of our international sales bases. In addition to these efforts, we have also strengthened our production operations by expanding production facilities at our factories both at home and abroad, as well as through the gradual introduction of robots.