November 2nd, 2017
Company Name: TOPY INDUSTRIES, LIMITED
Representative: President and CEO, Nobuhiko Takamatsu(Code: 7231 Tokyo and Nagoya Stock Exchange; first section)
Contact: General Affairs Dept. GM,Shuichi Tachibana(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 2017

Topy Industries Limited hereby gives notice regarding the difference that has risen between the financial
forecasts announced on May 12th, 2017 for cumulative second quarter of the accounting year ending in March 31st,2018 (April 1st, 2017 to September 30th, 2017) 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 2nd, 2017 to adjust the consolidated financial forecast the dividends forecast for Fiscal 2017(April 1st,2017 to March 31st, 2018) 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 2017 (April 1st, 2017 September 30th, 2017)

Net Sales

Operating
IncomeNet income forsecond quarter
Net Income for
attributable toOrdinary
second quarter
shareholders ofIncome
per Share
the parentcompany
Million Yen
Million Yen
YenMillion Yen

Million Yen

Previous Forecast (A)(Announced May 12th, 2017)

110,000

2,000

2,100

1,300

55.36

Revised Forecast (B)107,235

3,605

4,001

2,768

117.90Difference (B-A)△2,764+1,605+1,901+1,468+80.3%+90.6%+113.0%1,930984

1,177

Percentage ofIncrease/Decrease (%)(Ref.) Pervious Results(the second quarter of FY ending March 2018)△2.5%
97,18549.76

Difference from the estimated values of the consolidated financial forecasts for fiscal year 2017 (April 1st, 2017 – March 31st, 2018)

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

Net Sales

Operating
IncomeMillion Yen

Million Yen

Previous Forecast (A)(Announced May 12th, 2017)

227,000

7,500

7,400

4,900

208.67

Revised Forecast (B)233,000

8,500

8,600

5,500

234.20Difference (B-A)

6,000

1,000

1,200600

Percentage ofIncrease/Decrease (%)+2.6%+13.3%+16.2%+12.2%(Ref.) Pervious Results(FY ending March 2017)

208,237

7,180

6,116

7,191

Net Incomeper ShareYen

303.90Reason for the Difference
In terms of the actual financial result for the cumulative second quarter of fiscal 2017, the operating
income exceeded the forecast in the automotive / industrial machinery components business as sales volume wasgreater than initially predicted. Likewise, in the steel business the operating income exceeded the forecast as theprice of steel scrap, the main material, was lower than expectation. In addition, due to the increase of the operating
income, ordinary income and net income attributable to shareholders of the parent company exceeded that which
was previously disclosed.
In terms of the consolidated financial result for the fiscal 2017, regarding the first half of fiscal 2017, theprofit level exceeded that which was previously disclosed. Regarding the second half of the fiscal 2017, despite
the negative impact of higher price of steel scrap, the operating income is expected to exceed the forecast in theindustrial machinery components / construction machinery wheels business as the sales volume exceeded theforecast.
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 third quarterEnd of first quarterEnd of fiscal year

Full fiscal year

Yen

Yenquarter
Yen

Yen

Yen

Previous Forecast(Announced May 12th, 2017)

―

20.00

―

50.00

70.00

Revised Forecast

―

―

―

60.00

80.00

Actual Result(Fiscal Year 2017)
Previous Year Results(FY ending March 31st, 2017)

―

20.00

―

―

1.00

―

70.00

―

Note: Since the share consolidation of common stock by ratio of 10 shares to 1 share came into effect as ofOctober 1st, 2016, the year-ended dividend per share for the 2016 fiscal year is calculated taking into considerationsuch share consolidation. Recalculating the dividend according to the share consolidation, the dividend for thesecond quarter of FY 2017 is ¥10 / share, and the annual dividend is ¥80 / share.

Reason for the Revision
Given the fact that the consolidated financial result for fiscal year 2017 exceeded the previous forecast,and taking into account our dividend policy previously announced, the year-end dividends for fiscal 2017 is ¥60 /share (an increase of ¥10 from that of the financial statement announced on May 12nd, 2017). Accordingly, theannual dividend for the fiscal 2017, being the total of the interim and year-end dividends, amounts to ¥80 /share.

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 2nd, 2017 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.