March 1, 2022
Company Name: TOPY INDUSTRIES, LIMITED
Representative: Nobuhiko Takamatsu, President and CEO(Code: 7231 Tokyo and Nagoya Stock Exchange; first section)
Contact: Tetsuya Sakai, Operating Officer andGeneral Manager, General Affairs Department(TEL: 03-3493-0777)

Announcement Regarding Adjustment of Financial Results Forecasts and Reduction of Officer
Compensation
Topy Industries Limited (the "Company") announces that at the meeting of the Board of Directors held on March1, 2022, it has revised the consolidated financial results forecasts for the fiscal year ending March 31, 2022 (April1, 2021 to March 31, 2022) released on November 5, 2021, and the non-consolidated financial results forecasts
released on May 11, 2021, taking into consideration the recent trend in financial results. Details are as follows.
In addition, the Company announces that it has decided to reduce Officer compensation.

1. Adjustment to the Financial Forecasts(1) Adjustment of estimated values of the consolidated financial forecasts for the fiscal year ending March 31, 2022
(April 1, 2021 – March 31, 2022)
ProfitOperating

Ordinary

attributable toBasic earnings

profitprofitowners ofper share

Million yen

Million yen

Million yen

Million yen

Yen

266,000

1,500

1,000

1,500

64.37

Revised Forecast (B)272,000(1,500)(1,300)

500

21.46

Difference (B-A)

6,000(3,000)(2,300)(1,000)

－

2.3

－－

(66.7)－

225,121(2,943)

(575)

578

24.70

Net sales

parentPrevious Forecast (A)(Announced November 5,2021)

Percentage ofIncrease/Decrease (%)(Ref.) Pervious Results(Fiscal 2020)(FY ended March 2021)-1-

(2) Adjustment of estimated values of the non-consolidated financial forecasts for the fiscal year ending March 31,2022 (April 1, 2021 - March 31, 2022)
OperatingOrdinary

profitprofitMillion yen

Million yen

Million yen

Million yen

Yen161,000

200

1,700

1,200

51.50

Revised Forecast (B)169,000(2,700)

(200)

3,100

133.04

Difference (B-A)

8,000(2,900)(1,900)

1,900

－

5.0－－

158.3

－

124,313(4,270)(1,672)(402)(17.16)

Net sales

ProfitBasic earnings
per sharePrevious Forecast (A)(Announced May 11,2021)

Percentage ofIncrease/Decrease (%)(Ref.) Pervious Results(Fiscal 2020)(FY ended March 2021)(3) Reason for the Adjustment
With respect to full-year forecasts for the consolidated financial results for the fiscal year ending March 31,
2022, the Company was unable to fully absorb the cost increases associated with rising prices of steel scrap andenergy in the steel business, although it sought to to bolster profitability by revising the sales prices of steel. Inaddition, with sales volumes declining partly due to steelmaking equipment failures at Toyohashi works,
improvements in profitability are expected to be slower than the projected level. Further, the sales volume ofautomotive components is expected to fall in the Automotive & Industrial Machinery Components Business,
chiefly reflecting declining production at automakers linked to the supply shortage of semiconductors, among
other parts, and declining shipments due to the tightening market for marine container transportation. Regarding
the Power Business, progress was not made as expected in efforts to pass the higher costs attributable to coalprice rises on to sales prices. Consequently, the Company expects that operating profit, ordinary profit and profit
attributable to owners of parent will be lower than the previous forecasts.
With respect to full-year forecasts for non-consolidated financial results for the fiscal year ending March 31,2022, the Company also anticipates that operating profit and ordinary profit will fall below the previous forecasts,
mainly reflecting, as in the consolidated results forecasts, cost increases due to rises in the prices of steel scrap
and energy and steelmaking equipment failures, as well as production cuts implemented by automobile
manufacturers. Even so, profit for the current fiscal year is likely to exceed the previous forecast, withimprovements expected through measures such as boosting asset efficiency.
(Note) The above financial results forecasts are based on information available as of the date of this announcement.
Actual results may change due to a variety of factors.

-2-2. Reduction of Officer Compensation
Taking the above adjustment of financial results forecasts seriously, the Company has decided to reduce
compensation for Officers (excluding full-time Audit and Supervisory Board Members) who are members of theExecutive Management Meeting to clearly reflect their management responsibilities.
Compensation for Executive Directors and Operating Officers changes according to the previous fiscal year's
financial results. Due to the reduction announced in this release, monthly compensation for RepresentativeDirector, President and CEO, for example, declines 30% from the standard level.
(1) Detail of reduced amount of the officer compensation
Position
Representative Director,

Detail of reduced amount of the officer compensation
Reduction of monthly compensation by an amount equivalent toPresident and CEO
Director and Executive Vice
President / Senior Managing

20% of such remuneration
Reduction of monthly compensation by an amount equivalent to
15% of such remuneration

Director
Managing Director

Reduction of monthly compensation by an amount equivalent to
10% of such remuneration

Managing Executive Officer

Reduction of monthly compensation by an amount equivalent to
5% of such remuneration(2) Applicable period
For four months starting in March 2022

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 March 1, 2022 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.

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