November 1st, 2019
Company Name: TOPY INDUSTRIES, LIMITED
Representative: Nobuhiko Takamatsu, President and CEO(Code: 7231 Tokyo and Nagoya Stock Exchange; first section)
Contact: Shuichi Tachibana, Operating Officer andGeneral Manager, General Affairs Department(TEL: 03-3493-0777)

Announcement Regarding the Difference between the Cumulative Second Quarter Financial Forecast and Actual
Results, and the Adjustment of the Consolidated Financial Forecast and Dividends Forecasts for Fiscal 2019

Topy Industries Limited hereby gives notice regarding the difference that has risen between the financialforecasts announced on May 10th, 2019 for cumulative second quarter of the accounting year ending in March 31st,
2020 (April 1st, 2019 to September 30th, 2019) and the actual financial result announced today, as below. Inaddition, this announcement is with regard to the decision made at the Board of Directors meeting held on
November 1st, 2019 to adjust the consolidated financial forecast the dividends forecast for Fiscal 2019 (April 1st,
2019 to March 31st, 2020) originally announced on May 12th, 2017.

● Regarding the Difference between Financial Forecasts and Actual Results
Difference from the estimated values of the cumulative second quarter financial forecasts for fiscal year 2019 (April 1st, 2019 September 30th, 2019)

Net income forsecond quarter
Net Income for
attributable toOrdinary
second quarter
shareholders of
Incomeper Share
the parentcompany
Million Yen
Million Yen
Yen

Net Sales

Operating
IncomeMillion Yen

Million Yen

149,000

4,200

4,400

3,100

131.94

137,196

2,325

1,552

858

36.52

Difference (B-A)△11,803△1,874△2,847△2,241

Percentage ofIncrease/Decrease (%)△7.9%△44.6%△64.7%△72.3%(Ref.) Pervious Results(the second quarter of FY ending March 2019)

135,173

3,348

3,381

2,245

Previous Forecast (A)(Announced May 10th, 2019)

Revised Forecast(B)95.60

Difference from the estimated values of the consolidated financial forecasts for fiscal year 2019 (April 1st, 2019 – March 31st, 2020)

Net income
attributable toOrdinary
shareholders ofIncome
the parentcompany
Million Yen
Million Yen

Net Sales

Operating
IncomeMillion Yen

Million Yen

307,000

11,00011,4008,000

340.49270,000

6,500

7,000

4,500

191.53Difference (B-A)△37,000△4,500△4,400△3,500Percentage ofIncrease/Decrease (%)△12.1%△40.9%△38.6%△43.8%(Ref.) Pervious Results(FY ending March 2019)286,227

7,505

9,357

7,114

Previous Forecast (A)(Announced May 10th, 2019)

Revised Forecast(B)Net Incomeper ShareYen

302.85

Reason for the Difference
In terms of the actual financial result for the cumulative second quarter of fiscal 2019, amid growing
uncertainty over the global economy partly due to the intensification of US-China trade friction and the associatedslowdown of the Chinese economy, sales volume fell short of the forecast in the automotive/industrial machinerycomponents business with respect to undercarriage components for construction equipment and wheels for miningequipment, among other products. Mainly because of these factors, net sales, operating income, ordinary income
and net income attributable to shareholders of the parent company were lower than those in the previous forecast.
In terms of consolidated financial results for fiscal 2019, with tough demand environments expected tocontinue in the automotive/industrial machinery components business, going forward, net sales, operating income,ordinary income and net income attributable to shareholders of the parent company are forecast to fall short ofthose in the previous forecast.
Please note that the outlook explained here is based upon currently available information, and the actual
performance could be influenced by various uncertainties.

●Regarding the Amendment of Dividends
Dividends per share
End of second
End of first quarterEnd of third quarterEnd of fiscal year

Full fiscal year

Yen

Yen

Yenquarter
Yen

Yen

Previous Forecast(Announced May 10th, 2019)

―

40.00

―

50.00

90.00

Revised Forecast

――

―

20.00

60.00

―

40.00

――20.00―70.00

90.00

Actual Result(Fiscal Year 2019)
Previous Year Results(FY ending March 31st, 2019)

Reason for the Revision
Consolidated results for fiscal 2019 are expected to fall short of the previous forecast. According to thepreviously announced dividend policy, the year-end dividend is expected to be ¥20 per share (a decrease of ¥30
from the amount announced on May 10, 2019).

Note: This document has been translated from the original Japanese version for reference purposes only. In the event of any
discrepancy between this translated document and the original Japanese version, the original shall prevail.
The original disclosure in Japanese was released on November 1st, 2019 at 13:30 (GMT+9).
The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from thetranslation.