Consolidated Basis Results of the Second Quarter for Fiscal 2021
(April 1, 2021 – September 30, 2021)
November 5, 2021
TOPY INDUSTRIES, LIMITED
Stock listing: Tokyo, Nagoya stock exchanges
7231
URL: http://www.topy.co.jp/en/index.html
Nobuhiko Takamatsu, Representative Director, President and CEO
Tetsuya Sakai, Operating Officer, General Manager, General Affairs Department
Telephone: 03-3493-0777 / (Overseas) 81-3-3493-0777
Scheduled date for submission of securities report: November 12, 2021
Scheduled date for dividend payment:‒
Preparation of supplementary explanatory materials: Yes
Holding of quarterly financial results meeting:Yes (for institutional investors and analysts)
Registered Company name:
Code number:
Representative:
Contact:(Figures of less than ¥1 million have been omitted)
1. Consolidated Financial Results of the Second Quarter for Fiscal 2021 (April 1, 2021 – September 30, 2021)(1) Consolidated Operating Results (Cumulative)(Percentage figures are changes from the same period of the previous fiscal year)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen
Second Quarter of Fiscal 2021

125,059

Second Quarter of Fiscal 2020
(Note) Comprehensive income:

97,419%28.4

Million yen

Million yen%

Million yen%(1,588)–(1,472)–（29.0）（4,231）－(3,927)
Second Quarter of Fiscal 2021
¥2,125 million
Second Quarter of Fiscal 2020 -¥3,884 million

–
–%
–%

(4,226)–

Profit per share－

Profit per shareafter full dilution

Yen(63.21)(179.89)

Second Quarter of Fiscal 2021
Second Quarter of Fiscal 2020%

（1,462）Yen––(2) Consolidated Financial Position
Total assets

Net assets

Ratio of shareholders’equity to total assets

Million yen
Million yen
267,983
110,195
264,672
108,385
Second Quarter of Fiscal 2021 ¥109,189 million

Second Quarter of Fiscal 2021
Fiscal 2020(For reference) Shareholders’ equity:

Net assets per share

%
Yen
40.7
4,685.95
40.6
4,611.46
Fiscal 2020 ¥107,428 million

2. Dividends
Dividends per share
End of first quarterEnd of second
quarter

End of third quarterEnd of fiscal year

Full fiscal year

Yen

Yen

Yen

Yen

Yen

Fiscal 2020

－

0.00

－

20.00

20.00

Fiscal 2021

－

0.00
－

20.00

20.00

Fiscal 2021 (Forecasts)
Note: Whether changes to the latest dividend forecasts have been made: Yes

For details, please refer to “Announcement Regarding the Adjustment of Financial Forecasts and Dividends Forecast” released today.

3. Consolidated Financial Forecasts for Fiscal 2021 (April 1, 2021 – March 31, 2022)(Percentage figures are changes from the same period of the previous fiscal year)
Profit attributable toProfit per
Net sales
Operating profit
Ordinary profit
owners of parent
shareMillion yen%

Million yen%

Million yen

Fiscal 2021
266,000
18.2
1,500
－
1,000
Note: Whether changes to the latest forecasts for consolidated figures have been made: Yes%

Million yen

%

Yen

－

1,500

159.1

64.37

For details, please refer to “Announcement Regarding the Adjustment of Financial Forecasts and Dividends Forecast” released today.

* NOTE(1) Changes in the State of Material Subsidiaries during the Period: None
Newly included: – (Name) –Excluded: –(Name) –(2) Adoption of Special Accounting Methods for the Preparation of Quarterly Consolidated Financial Statements: Yes
Note: For details, please refer to “Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements.”(3) Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements(a) Changes in accounting principles accompanying the amendment of accounting standards: Yes(b) Changes other than those in (a) above: None(c) Changes in accounting estimates: None(d) Retrospective restatements: None
(4) Number of Shares Issued (Common shares)(a) Number of shares issued at the end of the period (including treasury stock)
Second Quarter of Fiscal 2021
24,077,510 sharesFiscal 2020(b) Number of treasury stock at the end of the period
Second Quarter of Fiscal 2021
775,961 sharesFiscal 2020(c) Average number of shares issued during the period
Second Quarter of Fiscal 2021
23,297,330 shares
Second Quarter of Fiscal 2020

24,077,510 shares
781,625 shares
23,495,147 shares* These consolidated financial results are not included in the scope of quarterly audits by certified public accountants or audit
corporations.
* Explanation of the Appropriate Use of Performance Forecasts and Other Related Items(Caution concerning future descriptions, etc.)
The above estimate has been compiled based on information available at the time this disclosure was made. The actual earnings are
subject to change from the estimated values due to various factors. For assumed conditions underlying the earnings forecast andcautionary statements in using the earnings forecast, please refer to “Explanation Regarding Future Estimate Information Such as
Consolidated Financial Performance Estimates” on page 5.
(Method for acquiring supplementary briefing material on quarterly financial results)
The Company plans to hold a briefing session for institutional investors and securities analysts. A video of this briefing session
and briefing material will be posted on the Company’s website promptly after the briefing session.

Index of Attached Documents
1. Qualitative Information Regarding Results of the Second Quarter for Fiscal 2021

2(1) Explanation Regarding Consolidated Operating Results

2(2) Explanation Regarding Financial Position

3(3) Explanation Regarding Future Estimate Information Such as Consolidated Financial Performance Estimates3

2. Quarterly Consolidated Financial Statements and Important Notes

4(1) Quarterly Consolidated Balance Sheets

4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income

6

Quarterly Consolidated Statements of Income
Second Quarter Consolidated Cumulative Accounting Term

6

Quarterly Consolidated Statements of Comprehensive Income
Second Quarter Consolidated Cumulative Accounting Term
(3) Notes Regarding Quarterly Consolidated Financial Results

78(Note Related to Going-Concern Assumption)

8(Note on Significant Changes in the Amount of Shareholders’ Equity)

8(Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements)

8(Changes in Accounting Policies)

8

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 5, 2021 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.

- 1 -1. Qualitative Information Regarding Results of the Second Quarter for Fiscal 2021
(1) Explanation Regarding Consolidated Operating Results
During the first half of the consolidated fiscal year under review, there were signs of recovery in the U.S., Europe, and otherregions as COVID-19 vaccinations progressed, but the global economy continued to face a difficult environment due to theimpact of the spread of COVID-19 variants, among other factors. The Japanese economy also showed signs of recovery but faceda challenging situation mainly because of continued restrictions on economic activity under the state of emergency and priority
measures such as prevention of the spread of COVID-19, in addition to the supply shortage of semiconductors in the latter periodof the first half of the fiscal year under review.
Under these circumstances, the Group produced and sold products to meet demand and worked to improve earnings. The
Group worked to optimize its production system in the Automotive & Industrial Machinery Components Business andimplemented the development and sale of its unique products in response to customer and social needs. The Group implemented
initiatives in line with the medium-term business plan, Growth & Change 2021. In addition, the Group installed the Sales
Headquarters, a new organization, to strengthen its sales capability, while also taking steps for the future, including the decision
to establish a Business Development Strategy Center whose purpose is centralized and integrated management of the basic
research phase and practical use phase of the development of new strategic products and new technologies and creation of new
businesses.
The financial results for the first half of the fiscal year under review include consolidated net sales of ¥125,059 million (up28.4% year on year) due to the recovery in demand in the Automotive & Industrial Machinery Components Business and an
improvement in steel sales prices in response to a rise in steel scrap prices. Given the impact of an increase in cost due to risingsteel scrap prices and a sharp rise in the price of coal, the fuel for power generation, we posted an operating loss of ¥1,462
million (compared to an operating loss of ¥4,231 million in the same period of the previous year), and an ordinary loss of ¥1,588
million (compared to an ordinary loss of ¥3,927 million in the same period of the previous year). The loss attributable to ownersof parent was ¥1,472 million (compared to loss attributable to owners of parent of ¥4,226 million in the same period of theprevious year).
The Group has applied Accounting Standards for Revenue Recognition (Accounting Standards Board of Japan (ASBJ)
Statement No. 29 issued on March 31, 2020) since the beginning of the first quarter of the consolidated fiscal year under review.
For details, please refer to 2. Quarterly Consolidated Financial Statements and Important Notes (3) Notes Regarding Quarterly
Consolidated Financial Results (Changes in Accounting Policies).
Performance by Segment(Steel Business)
The steel industry continued to face a challenging situation as the price of steel scrap, a principal raw material of steel,continued to rise sharply from the second half of the previous fiscal year.
Given these circumstances, the Group worked to improve steel sales prices. Net sales increased to ¥42,361 million (up 29.1％
year on year). However, we were unable to pass on increased costs due to sharply rising steel scrap prices to steel sales prices,
resulting in an operating loss of ¥38 million (compared to an operating profit of ¥671 million in the same period of the previousyear).
(Automotive & Industrial Machinery Components Business)
In the automotive industry, production volume was higher than in the same period of the previous year, but the industry faceda difficult business environment as production was reduced later in the first half of the fiscal year due to the supply shortage ofsemiconductors, among other factors. In the construction machinery industry, demand for hydraulic shovels expanded mainly in
the United States and Southeast Asia. Demand for mining machinery remained strong worldwide due to rising resource prices.
Given these conditions, the sales volume of mainly commercial vehicle wheels and parts for the undercarriages of construction
machinery increased. As a result, net sales totaled ¥75,936 million (up 30.9％ year on year) and operating profit stood at ¥1,465
million (compared to operating loss of ¥3,176 million in the same period of the previous year).
(Power Business)
The business environment remained challenging in the power business due to a surge in coal prices, a fuel for power generation.
Given these circumstances, the Group worked on the stable supply of electricity in line with its business plan but was affectedby an increase in cost. As a result, net sales stood at ¥3,854 million (up 5.7％ year on year) and the operating loss was ¥783
million (compared to an operating profit of ¥146 million in the same period of the previous year).
(Science Business)
The Group manufactures and sells synthetic mica and robots. Synthetic mica was affected by weak demand for cosmetics inJapan, offsetting a recovery in demand for cosmetics overseas. As a result, net sales fell 14.7% year on year to ¥426 million, andoperating loss amounted to ¥162 million (compared to an operating loss of ¥204 million in the same period of the previous
fiscal year).
(Leasing Business)
In the leasing business, operating profit was ¥350 million (down 0.0% year on year).
(Others)
The Group operates a civil engineering and construction business, sports club OSSO, and other businesses. Net sales came to¥2,480 million (up 1.2% year on year) and operating profit was ¥88 million (down 30.9% year on year).

- 2 -(2) Explanation Regarding Financial Position
Total assets at the end of the second quarter of the consolidated fiscal year under review stood at ¥267,983 million, an increaseof ¥3,310 million from the end of the previous consolidated fiscal year. Primary factors for the increase included an increase of¥3,781 million in merchandise and finished goods.
Total liabilities were ¥157,787 million, an increase of ¥1,501 million compared with the end of the previous consolidated
fiscal year. This was caused mainly by an increase of ¥1,615 million in electronically recorded obligations - operating.
Total net assets came to ¥110,195 million, an increase of ¥1,809 million from the end of the previous consolidated fiscal year.
This was mainly due to an increase of ¥1,763 million in foreign currency translation adjustments.
(3) Explanation Regarding Future Estimate Information Such as Consolidated Financial Performance Estimates
While the global economy is expected to recover from the downturn in economic activities, the business environment
surrounding the Group is likely to remain difficult due to significant concerns, including the impact of the U.S.-China conflict
and the semiconductor shortage on automotive production and the globally tight supply of marine container transportation
services as well as increases in prices of energy and raw materials.
The Group has reviewed the consolidated financial forecasts for the fiscal year ending March 31, 2022 (April 1, 2021 to March
31, 2022) announced on May 11, 2021 and forecasts net sales of ¥266,000 million, an operating profit of ¥1,500 million, an
ordinary profit of ¥1,000 million, and a profit attributable to owners of parent of ¥1,500 million. For details, please refer to“Announcement Regarding the Adjustment of Financial Forecasts and Dividends Forecast” released today.

- 3 -2. Quarterly Consolidated Financial Statements and Important Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 4 -As of September 30, 2021

24,477
51,10922,670－－48,03520,926
4,902
14,574
6,427△58
122,360

24,708
6,008
16,481
6,815△63
124,656

93,281△64,517
28,763
213,046△168,097
44,94915,2792,584△1,461
1,122
6,051
44,073△42,148
1,924
98,091

94,378△65,264
29,113215,972△169,439
46,532
15,0992,407△1,484922
3,273
41,942△39,978
1,964
96,906

3,890
3,890

3,512
3,512

29,257
206
1,634
386
8,892
△47
40,329142,311
264,672

31,728
203
1,696
386
8,934
△42
42,906
143,326
267,983

(Millions of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating
Short-term borrowings
Current portion of bonds payable
Lease obligations
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease obligations
Deferred tax liabilities
Provision for corporate officers' retirement benefits
Provision for share awards for directors (and otherofficers)
Provision for retirement benefits for directors (andother officers)
Reserve for repairs
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 5 -As of September 30, 2021

27,00913,21523,982
5,300
232
923
13,53984,201

27,608
14,83022,056300
139
607
13,69879,23927,00024,793
367
5,736
211

37,00021,828
284
6,546
164

36

23

60

21

398
10,782358
2,339
72,084
156,286257
10,554345
1,522
78,548
157,787

20,98318,60662,023△1,943
99,66920,98318,60660,255△1,931
97,9139,443
12△2,266
568
7,758
957
108,385
264,672

11,181
9△502
587
11,276
1,005
110,195
267,983(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Second Quarter Consolidated Cumulative Accounting Term)(Millions of yen)Six months ended
September 30, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodSubsidies for employment adjustment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on reversal of provision incurred from businesscombination
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Total extraordinary losses
Loss before income taxes
Income taxes
Loss
Profit (loss) attributable to non-controlling interests
Loss attributable to owners of parent- 6 -Six months ended
September 30, 2021

97,41987,374
10,044
14,276△4,231125,059
111,164
13,895
15,357△1,462

47
352
－

63
359
220

200

－

444
189
1,234

38
165
847

259
416

237
－

－

439

254
930
△3,927296
972△1,588

14
17

36
0

－

791

32

828

1
87
88
△3,983250△4,234△7△4,226

2
104
107
△866
568
△1,43437△1,472

(Quarterly Consolidated Statements of Comprehensive Income)(Second Quarter Consolidated Cumulative Accounting Term)(Millions of yen)Six months ended
September 30, 2020
Loss
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 7 -Six months ended
September 30, 2021

△4,234△1,434

1,412
△2
△933
21

1,697
△2
1,309
19

△148

536

349
△3,884

3,560
2,125

△3,827

2,045

△57

80

(3) Notes Regarding Quarterly Consolidated Financial Results(Note Related to Going-Concern Assumption)
None(Note on Significant Changes in the Amount of Shareholders’ Equity)
None(Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements)
Tax expenses were calculated by multiplying the rationally estimated effective tax rate after applying tax effect accounting to
profit before income taxes for the consolidated fiscal year, which includes the current second quarter under review, by profit
before income taxes for the first quarter.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Group has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc.
since the beginning of the first quarter of the consolidated fiscal year under review and recognizes revenue from goods or services
which the Group promised to provide at an amount expected to be received in exchange for the goods or services at the time
when control over the promised goods or services is transferred to a customer.
As a result, for the first half of the consolidated fiscal year under review, net sales and cost of sales decreased by ¥10,807
million and ¥10,844 million, respectively. The operating loss, ordinary loss and loss before income taxes each decreased by ¥36
million. In addition, the balance of retained earnings at the beginning of the period increased by ¥171 million.
Because the Accounting Standard for Revenue Recognition, etc. has been applied, “Notes and accounts receivable - trade,"which was included in "Current assets" in the consolidated balance sheets for the previous fiscal year, began to be included in"Notes, accounts receivable-trade and contract assets" from the first quarter of the consolidated fiscal year under review.
(Application of Accounting Standard for Fair Value Measurement etc.)
The Group has applied "Accounting Standard for Fair Value Measurement" (ASBJ Statement No.30, July 4, 2019), etc. fromthe beginning of the first quarter of the consolidated fiscal year under review. In accordance with the transitional treatment set
forth in Article 19 of Accounting Standard for Fair Value Measurement and Article 44-2 of "Accounting Standard for Financial
Instruments" (ASBJ Statement No.10, July 4, 2019), the Group has applied prospectively a new accounting policy prescribed by
Accounting Standard for Fair Value Measurement, etc. This has no effect on the quarterly consolidated financial statements.

- 8 -