TOPY Report 2019

TOPY

Report2019

TEL：+81-3-3493-0777 FAX：+81-3-3493-0200

TEL：+81-3-3493-0777 FAX：+81-3-3493-0200

TOPY

Report2019

Editorial Policy
The Topy Industries Group Corporate Basic Philosophy

Win the trust and respect of society
through the continuance and developmentof the Topy Industries Groupand the execution of one’s dutyas a public institution.
The Topy Industries Group Corporate Code of Conduct

Basic Policy
Topy Report 2019 provides selected important information
focusing on the company’s management strategies toimprove corporate value in the medium to long term,
including information related to its business activities,
operating results, social responsibilities, and management
control system. The aim of this report is to encourage candid dialogue with our stakeholders, including shareholders,investors and related parties.
The IIRC’s International Integrated Reporting Frameworkand the Ministry of Economy, Trade and Industry’s
Guidance for Collaborative Value Creation were used as
references in the creation of this report.

－ To win the trust and respect of society －Under the Corporate Philosophy, the management and employeesof the Topy Industries Group shall strictly abide by all applicablelaws and ordinances, the spirit reflected, and the Corporate Codeof Conduct, while accepting full corporate social responsibility andfostering an open-minded and creative corporate culture.

This report covers all companies listed as subsidiaries of theTopy Industries Group (consolidated basis). However, some
activities and data represent only Topy Industries, Ltd. In
principle, activities where the scope is not specified refer tothose of the Topy Industries Group. Where it is necessary
to specify the applicable scope, activities by Topy Industries
alone are identified within the headline or descriptions
as Topy Industries, and activities by an individual Group
company are identified by its corporate name.

Covers mainly FY2018 (April 1, 2018 to March 31, 2019),
but also includes some activities that occurred on and after
April 1, 2019.
Date of Issue
September 2019
Inquiries Regarding this Report
Topy Industries, Ltd. (General Affairs Department)
TEL: +81-3-3493-0777
Art Village Osaki Central Tower, 1-2-2 Osaki, Shinagawa-ku,
Tokyo 141-8634, JapanTOPY Report 2019

Editorial Policy and Contents

2

Chapter 1

3

Value Creation

Businesses of the Topy Industries Group

3

History of the Topy Industries Group

5

Value Creation Process of the Topy Industries Group7

Chapter 2

9Growth Strategies

Top Message

9

Reflecting on the Previous
Medium-Term Management Plan (Growth & Change 2018)15

New Medium-Term Management Plan (2019–2021)

17

Chapter 3

19

Business

Steel Business
Reporting Scope

Reporting Period

1Contents

19

Automotive and Industrial Machinery Components Business(Wheels)
21
Automotive and Industrial Machinery Components Business(Undercarriage Components for Construction Machinery)23
New Fields

25

Global Expansion of the Topy Industries Group27

Chapter 4

29

Sustainability

Sustainability Initiatives of the Topy Industries Group

29

Environmental Initiatives

31

Social Responsibility

38

Corporate Governance

44

Chapter 5

48

Corporate Data

Our History

48

Management Team49

Consolidated Financial Performance for the Past 11 Years

51

Major Subsidiaries & Affiliates

53

IR Information

54

TOPY Report 20192

Chapter 1

Value Creation
Net Sales and Operating Profit by Segment in FY2018 (Unit: JPY million)

Businesses of the Topy Industries GroupNet sales

Steel Business

80,00072,24760,00040,00063,767
4,815

3,381

63,8030Power plant

Aluminum2017

2018 （FY）

9,596

10,567

2,475
494

2014

2015

2016

871

6,000

2017

1,228

2018 （FY）

Net sales

188,175

160,000 151,025

80,000Track shoes

134,099 129,681

6,919

5,320

16,000142,790

6,524

8,433

20,000

7,833

12,0000Undercarriage components forconstruction machinery（track shoes, tracks）

Other Businesses

8,000
4,000

40,000Tracks

2014

2015

2016

2017

0

2018 （FY）

Industrial fasteners（precision leaf springs, etc.）

Creating new sources of profit

Synthetic mica for use incosmetics

Crawler robots（JPY million）

Operating profit

200,000

120,000（JPY million）

6,647

△904

Operating
Profit on
Sales

0

8,000

0

Undercarriage components forconstruction machinery

2,000

12,0003,000

We manufacture and sell products including steel and aluminum
wheels for automobiles, wheels for mining vehicles, undercarriage
components for construction machinery (track shoes* and tracks**),and industrial steel fasteners such as precision leaf springs.

Steel

Ultra-large wheels for mining dump trucks(SGOR® )

4,000

2,248

10,000

6,000

Steel

WheelsOperating profit

8,425

A world-leading comprehensive manufacturer ofwheels and undercarriage components forconstruction machinery*Track shoes: Component of tracks manufactured by processing and heat-treating hot
rolled steel materials (special steel). Track shoes and other components areassembled to form tracks.
**Tracks: A general name for the assembled undercarriage components of construction
machinery vehicles, which are generally called a steel track belt.

8,000

15,00010,626■ Other Businesses
1,550 12.1％

Wheels for trucks and buses

Wheels for passenger vehicles

We took electricity deregulation as an opportunity to construct a coal
thermal power plant (Toyohashi-shi, Aichi) while paying utmost consideration to maintaining harmony with the surrounding environment,
and began to operate our electricity wholesale business in 2000. Wechanged the supply destination and began to supply power under
new contracts in 2015.

9,000

TOPY Report 201980,442

Steel for use within
the company

Net sales■ Other Businesses
7,041 2.5％

Net sales and operating profit by segment and constituent ratios shown are amounts prior to adjustments (total: JPY 12,860 million).

10,000Focusing on the stable supply of electricity while paying utmost
consideration to maintaining harmony with the surrounding
environment

Operating
Profit on
Sales

3

2016

■ Power Generation Business
1,228 9.6％

Corporate Data

Power Generation Business2015■ Power Generation Business
10,567 3.7％

6,000
1,925

2014

■ Automotive and Industrial
Machinery Components Business
7,833 60.8％

Sustainability

Steel materials for ships and industrial
machinery

71,5252,882

20,000

Steel construction materials（JPY million）

Operating profit

100,000■ Automotive and Industrial
Machinery Components Business
188,175 65.7％

Business

Operating
Profit on
Sales■ Steel Business
2,248 17.5％

Growth Strategies

At the Topy Industries Group, the steel business unit produces steel using electric
furnaces as well as a wide variety of steel bars.
Wide flange beams, standard structural shapes and deformed bars areshipped as construction materials chiefly to customers in both domestic andoverseas markets, while special sections are largely supplied to the company’sautomotive and industrial machinery components business unit where they areturned into finished products. This business unit includes companies engaging
in the collection and recycling of steel scrap, a transportation company, and a
trading company that acts as the logistic and trading arms of the unit. In addition
to inter-group business transactions, it also sells products and provides services
to customers outside the Topy Industries Group.
Net sales■ Steel Business
80,442 28.1％

Automotive and Industrial
Machinery Components Business

A raw material business operated since our foundation

7,505

Operating Profit

Value Creation

The Topy Industries Group is a comprehensive metal processing group with an integrated production systemfrom raw material production to the fabrication of finished products. Within this, the steel business engages
in raw material supply and the automotive and industrial machinery components business unit deals inmaterial processing, both of which are interrelated.
The Group is also striving to diversify its businesses, which now encompass the wholesaling of electricity,
manufacture and sale of synthetic mica and crawler robots, leasing of real estate, and operation of sports
clubs.

286,227

We are expanding sales of synthetic mica, which is used forcosmetics and other products, in Japan and other countries, whiledeveloping applications for crawler robots that can move left, right,
forward and backward. We also lease real estate, such as Topy-Rec
Plaza (Minami-Suna, Koto-ku, Tokyo), and operate sports clubs,
including OSSO.

Operating
Profit on
Sales

Net sales（JPY million）

Operating profit

5,000

10,000
8,000

7,757

7,378

6,000

4,000

4,000

2,000

2,000

0

0

1,323

1,474

6,326

6,548

1,557

1,465

7,041

4,000
3,000

1,550

2,000
1,000

2014

2015

2016

2017

2018 （FY）

0

TOPY Report 20194

Value Creation

History of the Topy Industries GroupIn the long history since its foundation, the Topy Industries Group has been expanding its businesses byleveraging the originality and ingenuity of the people at its work sites, based on its unique technologies.

1921

Founded in

Origin of deformed section
steel technologies

1922

Miya Steelworks
succeeds in hot-rollingsteel sash bars (window
frames)

1950

1990

2008
The business alliance with
Nippon Steel Corporation isstrengthened

1964

Topy Industries, Ltd. is establishedthrough the merger of Japan Motor
Wheel Co., Ltd., Toto Steel Mfg., Co.,
Ltd., Toto Zoki Co., Ltd., andToto Tekko Co., Ltd.

1930

Teikoku Hatsujo Seisakusho (thepredecessor of Japan Motor Wheel
Co., Ltd.) commences the production of prototype steel wheels forautomobiles

2013

2003

Overseas

Expansion into Mexico

2016

The business and capitalalliance with MW Italia
S.R.L. is strengthened

2017
Expansion into India

Aluminum wheels

2013

Wheels for trucks and buses

Technologies and new businesses

Wheels manufactured by Teikoku Hatsujo
Seisakusho

Undercarriage components forconstruction machinery

1999

Expansion into theUnited States

Expansion into
Indonesia

Establishingan optimal global
production
system2013

2002

Expansion into
Indonesia

Expansion into China

Sustainability

A building in the early Showa Period (1926
to 1989) with steel sash bars

2018

Expansion into China andThailand (Asahi Tec
Corporation becomesa wholly-owned subsidiary)Business

Expansion into China

Other
businesses

Strengthening
the integrated
production
system2009

Expansion into theUnited StatesPowergeneration
business

2014

A new steelmaking plant is completed at the Toyohashi Works
with the introduction of an environmentally-friendly, high-efficiency arc furnace

The production capacity of the rolling millshop for medium-size steel products (arolling line for deformed section steel) is
increased at the Toyohashi Works

1985

Wheels for passenger vehicles

Undercarriage
components
for industrial
machinery

2017 2018

2014

2008

1953

Hot-rolling and thecommercial production of track shoes
startsWheelsGrowth Strategies

Japan

1921

Foundation ofMiya Steelworks(predecessor of
Toto Steel Mfg.,
Co., Ltd.)

Establishment of an integrated
production system+
Vertical integration of steelmaking, hot-rolling, and wheel
production

Steel

Value Creation

In 1964, our integrated production system for producing and making
full use of steel was completed through the merger of four companies(engaging in businesses concerning steel and wheels, undercarriage
components for construction machinery, and others). The integration ofdifferent businesses creates management stability, while synergies leadto new businesses (industrial fasteners, synthetic mica, power generation, crawler robots, and other businesses), thereby expanding ourbusiness domains and improving business performance.

1982

Development of SGOR®,
the world’s largest wheel formining vehicles

2009

Development of lighter weight wheels

1989●Adoption of rims made of deformed section

Developed from metal
processing technologies

steel and discs formed through cold spinning(rocking die forming) (for buses and trucks)●Adoption of high-tensile-strength steel sheet(for passenger vehicles)

Corporate Data

Heat treatment efficiency improved through the developmentof low-carbon boron steel for
track shoes

Creating
new value

2017

1974

Commencement of the industrial fastener business

1987

2000

Practical application of high-quality
synthetic mica for cosmetics

The power
generation businessis launched

Development of an automateddriving system for crawlers thatcan move left, right, forward andbackward

Use of existing infrastructure of thesteel business for the power generation business (including land, quays
and power transmission facilities)

Developed fromtrack manufacturing
technologies

Developed fromelectric furnace
melting technologiesof the steel businessNet sales

1964
5

TOPY Report 2019

1970

1980

1990

2000

2010

2018
TOPY Report 20196

Value Creation

Value Creation Process of
the Topy Industries Group*SDGs: Sustainable Development Goals
The Sustainable Development Goals were adopted at a UN summit in 2015.
They comprise 17 goals and 169 targets for tackling challenges such as eradicating poverty and building recycling-based societies, with a deadline of 2030.

The Topy Industries Group
Corporate Basic Philosophy
Win the trust and respect of society
through the continuance anddevelopment of the Topy Industries Groupand the execution of one’s dutyas a public institution.

Rise of AI, IoT,
and big data

Industrial
machiner ycomponents

Japan

Power
generation

Advent of asuper-aging
societyWorkstyle reformand greater
participation of
females in theworkforce

New value
creationNewbusinessesSoundfinancialfooting

Technologicaldevelopment
and personnel
cultivation

based societies

electric furnaces● Enhancement of the functionality ofsteel materials for various purposes● Contribution to
Metal processing
technologies

Steel wheels for trucks andbuses
Heat treatment
technologies

motorization andinfrastructure development

Wheels for passenger
vehicles (steel, aluminum)×

Global supply
systems

Ultra-large wheels formining dump trucks● Improvements in the safety and func-

tionality of wheels and undercarriage
components for construction machinery● Securing of manpower andimprovements in safety

Undercarriage components
for construction machinery(track shoes, tracks)● Supporting prosperous

Use of the existing
infrastructure of thesteel businessElectricity

Application of electric
furnace melting
technologies

Synthetic mica(for cosmetics, etc.)

Use of track
manufacturing
technologies

Crawler robots (AGVs, etc.)

Diversecustomerbase

A supply chainthat supports
stable delivery

Governancestructure● Provision of a stable energy supply

lifestyles and the naturalenvironment

Corporate Data

Population
decline● Contribution to recycling● Recycling of scrap iron, etc. using

Sustainability

Increasing
severity ofclimate change
issuesAutomotive
components

Integrated
production
systemSteel construction materials
Steel materials for ships andindustrial machinery
Steel for use within thecompany (rims, track shoes)

Value Provided to Society

Business

Advancing
economic growthand urbanizationin emerging
countries

×

Steel

GlobalPopulation
increase

Technology for rollingdeformed section steel

Electric furnace steelmaking technologies

Synergies between businesses

Changesin theExternal
Environment

Main Products and Services

Business Model and Strengths

Social Issues andRelevant SDGs

Growth Strategies

Business

Value Creation

We solve social issues and achieve sustainable growth by generating unique value through each of our businesses.

The Topy Industries Group has leveraged its strengths of outstanding technological capabilities related to steel and an integrated system for production from raw materials to finished products in order to gain greater trust from customers and capture
leading shares of the global market for its mainstay products, while expanding into peripheral businesses.
We will make full use of our business base and the strengths we have cultivated through our various businesses, including
steel, automotive and industrial machinery components, power generation, synthetic mica, and crawler robots, to contribute tosolving social issues related to the SDGs* and to grow sustainably together with society.

● Improvements in the safety and func-

tionality of cosmetics using impurity-free synthetic mica as a raw material

Financial Capital Targetsof the Company（medium-term plan）● Reductions in manpower and energy

needs using crawler robots

Net sales

JPY 320.0 billion

Operating profit

JPY 16.0 billion

ROS

5.0%

ROE

8.5%

Solid Foundation for Our Business

7

TOPY Report 2019

TOPY Report 20198

Chapter 2

Growth Strategies

Top Message
Value Creation
Growth Strategies
Business

Cultivating People and Technology
to Build a Value Creation Cycle for
the Next 100 Years

Sustainability
Corporate Data

Value creation that leverages outstanding
technological capabilities for making
and mastering steel and an integrated
production system in its DNA
In 2021, Topy Industries will celebrate 100 years since its founding.
To date, we have leveraged the strengths rooted in our DNA of outstanding technological capabilities for“making and mastering steel”and an integrated production system spanning from raw
materials to products. This has enabled us to win the trust of customers and capture a leading
share of the global market for mainstay products including wheels for automobiles, wheels formining vehicles, and undercarriage components for construction machinery. We have also continuously taken on new challenges and expanded our business into surrounding fields.
A structural shift is occurring in which every field of finance and industry worldwide is enteringa transition period. The Topy Industries Group must respond to these changes in the economic environment with agility and accuracy. We must make full use of our business base and thestrengths we have cultivated through our various businesses, including steel production, automotive and industrial machinery components, power generation, synthetic mica, and crawler robots,
to help create a more prosperous and comfortable society and realize sustainable growth.
In our new medium-term management plan“Growth & Change 2021”(G&C 2021), which began in FY2019 and includes targets for 2021, this is the bedrock from which we will improve ourcorporate value and create a new Topy Industries for the next 100 years.

9

TOPY Report 2019

Representative Director and President
Topy Industries, Ltd.

TOPY Report 201910

Growth Strategies

Stage 3（2019 –2021）

Growth & Change 2018

Growth & Change 2021

2021
2018
2015

Grow in termsof quantity
Expand sales

JPY

ROE

ROS

ROE

4.6%
1.7%

286.2

Operating
Profit10.0

JPY
billion

6.5%

ROE

8.5%

JPY

7.5

billion* Excluding the effects of unforeseen failures ofsteel production equipment, operating profit was
JPY 10.0 billion

billion

ROS

5.0

ROS

5.0%
Transform interms of quality
Expand profit

2.6%

16.0

billion

JPY

215.9

billion

ROS

JPY

320.0
billionNet Sales

Operating Profit
JPY

%

ROE

JPY

16.0

8.5

%

Sustainability

billion◦Steel◦Automotive and industrial machinery components◦Power generation, new fields, otherAccomplishing Global Growth and Change
to Achieve a Highly Profitable Business Structure

Corporate Data

TOPY Report 2019

Stage 2（2016 –2018）

Business

11

New Medium-Term Management Plan
Growth & Change 2021 (G&C 2021)
Targets and How We Will Achieve Them

Growth Strategies

In the series of medium-term management plans with the slogan of“Growth & Change”(G&C)
since fiscal 2012, the Group has constantly promoted global“Growth”and“Change”toachieve a highly profitable business structure.
G&C 2018 (FY2016–2018) was the second stage of G&C and in the automotive and industrial machinery components business, we expanded our overseas locations to build a global
supply system that enables us to supply wheels with common designs to anywhere in theworld, particularly steel wheels for passenger vehicles. We also acquired Ring Techs Co., Ltd.
as a subsidiary in order to reorganize and strengthen our production systems for steel wheels
for passenger vehicles in Japan, and acquired Asahi Tec Corporation as a subsidiary in orderto strengthen the foundations of our aluminum wheel business, which is enjoying significant
growth in demand in both Japan and overseas. In the steel business, we leveraged our proprietary technologies for manufacturing deformed section steel and processing technologies todevelop new products and proceeded to cultivate new customers. Furthermore, in regard to
new businesses, we expanded sales of synthetic mica, a material used in cosmetic products to
add gloss among other purposes, and steadily created a business foundation in crawler robots,
including for use as automated guided vehicles (AGV).
Looking at the consolidated business results for the final fiscal year of the plan, we progressively captured demand for construction and mining vehicles which started to recover during
the G&C 2018 period, and by making Ring Techs and Asahi Tec our subsidiaries, we achieved
net sales that considerably outperformed the targets of the medium-term management plan,and I believe we have created a business framework for realizing the next stage of growth.
However, in the steel business, sharp rises in the price of secondary materials such as graphite
electrodes and alloy iron led to higher costs than expected, while unforeseen failures in steel
production equipment reduced
production. The effects of these factors meant that we were unable toachieve the target profits. Currently
we are dealing with these unforeseen equipment failures by implementing preventative measures,
including in other major processes,
and the entire company is engaged
in building a new business continuity
plan (BCP) framework to minimize
the potential impact on customers
in case of future incidents. Also, weare gradually shifting to sales pricesthat more appropriately reflect theincreased costs caused by risingsecondary material prices.

Value Creation

Reflecting on the Previous Medium-Term
Management Plan Growth & Change 2018
(G&C 2018)

Increase Earnings Power and Leverage Group Synergies
Under these circumstances, in G&C 2021 (FY2019–2021), which is the final stage of G&C, we will
put priority on increasing the earnings power of businesses that were enhanced under G&C 2018
and aim to achieve the primary business targets of an operating profit of JPY 16.0 billion, ROS of
5.0%, and ROE of 8.5%.
First of all, we will reap the results of growth measures implemented in G&C 2018 to ensure we
definitely achieve our targets. In the automotive and industrial machinery components business,
we will leverage our global supply system for steel wheels for passenger vehicles to focus on
cultivating new customers and capture growth in demand worldwide, as well as work with Ring
Techs and Asahi Tec to fully realize synergistic effects both in Japan and overseas as early as
possible. The growing shift toward aluminum wheels and other factors have meant that demand
for steel wheels in the Japanese market is far lower than forecast, so we will coordinate with Ring
Techs to rebuild an optimal domestic production system for this level of demand in order to ensure profitability, while also realizing synergistic effects in terms of both sales and costs. On theother hand, demand for lighter vehicle bodies and higher design quality is growing. In order tocapture the rising demand for aluminum wheels in Japan and overseas and improve profitabili-

TOPY Report 201912

Growth Strategies

TOPY Report 2019

Cash Flow Allocation (G&C 2021 Period)

JPY

Expand CF fromoperations by• Raising EBITDA• Efficiently shrinking
inventory, etc.

3-Year CF fromoperations
JPY

7.0 billion

Effective cash usage, etc.

Growth investments

Capitalinvestments
JPY

52.0
billion64.0 billion

JPY

15.0

billionStrategic
investments

Corporate Data

13

We paid JPY 90 per share as the annual dividend for FY2018, with a consolidated dividend payout ratio of 30%.
For dividends during the G&C 2021 period, we will continue to use a consolidated dividend
payout ratio of around 30–35% as a guide. We will also determine the dividend amount by fully
considering the continued payment of stable dividends. Our internal reserve is allocated mainly toinvestment in new businesses and capital investment for long-term stable expansion in our efforts
to raise corporate value and realize sustainable growth. We look forward to receiving the continued understanding and support of our shareholders and investors.

Sustainability

Embrace the Challenge of Innovation
In G&C 2021, we will advance initiatives for growth beyond our 100th anniversary.
We have always aimed to be a company that creates the future with technologies. However,the shrinking Japanese market and prolonged deflation require us to focus on pursuing cost effectiveness, and there is a risk of losing sight of our future vision. In order to prepare for the nextstage of growth, we will invest more in research and development and foster human resources by
entrusting the development of new technologies to younger employees.
We will also apply IoT at our production sites to shift toward smart factories. Currently we areseeing significant energy-saving effects from visualizing energy usage volumes and making thesevisible to employees. In the near future, we plan to make use of the IoT that incorporates 5G
large-capacity communications technology to strengthen the capability of production sites in Japan to function as mother factories that can manage operations and equipment at overseas locations.
These initiatives will become increasingly important going forward in order to seek global growthamid the limitations of human resources.

Dividends

Business

Preparing for the Next Stage of Growth

Further Strengthen the Management Foundation
We will secure and cultivate human resources who will play leading roles over the next 100 years
by creating innovative workplaces, continuously engaging in activities that improve job satisfaction, and promoting diversity, which were successful in G&C 2018. Also, we believe that being acompany that is appreciated by society results in greater pride and job satisfaction among employees, which in turn leads to sustainable growth for the Group. To achieve this, we will continue
to implement the Topy Industries Group Corporate Basic Philosophy of“win the trust and respectof society through the continuance and development of the Topy Industries Group and the execution of one’s duty as a public institution”from an ESG standpoint. The Group will contribute tosociety through its business activities to meet the expectations of all stakeholders.

Growth Strategies

Enhance Strategic Products
Another important issue to tackle in order to increase earnings power is to break free from the commodification ofexisting products. Thus, we plan to leverage our unique
technology to advance development and expand sales of
products that can meet customers’needs and respond tosocial issues. In the automotive and industrial machinerycomponents business, we will accelerate the developmentof lightweight wheels as well as wheels based on high-quality designs. While proposing new ideas, in regard to wheels
for mining vehicles and undercarriage components for construction machinery, we will expand sales in the replacement parts market. In the steel business, we aim to capture
a greater share of markets for distinctive products, including deformed section steel products—
mast rails for forklift trucks, segment members for tunnel construction, and the new TACoil®,Japan’
s first steel bar for reinforced concrete. Regarding new businesses, demand for synthetic
mica, a base material for cosmetics, is expected to grow in both Japan and overseas. We willcapture this demand using renewed production equipment. On the other hand, the predicted labor shortage will surely increase the need for crawler robots. We will make a full-scale entry into
this market by promoting our robots as automatic positioning-type AGVs, which are differentiatedfrom existing tire-running vehicles and better at negotiating rough roads. We are determined tocapture every growth opportunity and cultivate new platforms to support our business. Our goal
for the entire Group is to raise the sales ratios of these strategic products by 50%.

Value Creationty, we will reduce costs and improve productivity throughcentralized purchasing that leverages our expanded scale
and by utilizing shared technology, and we will implement
specific measures such as coordinating the sale of steel
and aluminum wheels to realize mutual sales growth with asense of urgency. We intend to generate synergistic effects
in every step of our business, from purchasing and production to sales.

Allocation for
dividends

19.0

JPY
billionJPY

37.0

billion

Maintenanceinvestments
BCP and response
to laws andregulations, etc.

Allocate in a way that balances additional
strategic investment, shareholder return,and reduction of interest-bearing debt
based on consideration of funds available
and capital structure

TOPY Report 201914

Growth Strategies

Reflecting on the Previous Medium-Term
Management Plan (Growth & Change 2018)

Results

Targets

Operating profit on sales
（ROS）

5.6%

2.6%

JPY

7.5 billion

Return on equity
（ROE）

7.7%

6.5%

13.5 billion

JPY

9.4 billion

Return on assets
（ROA）

6.1%

3.2%

8.5 billion

JPY

7.1 billion

D/E ratio

0.60

0.72

JPY

Operating profit

JPY

14.0 billion

Ordinary profit

JPY

Profit attributable toowners of parent

JPY

250.0 billion

JPY

2018

Steel business

Built a global supply system for steel
wheels for passenger vehicles byforming business and capital alliances with overseas manufacturers
and expanding overseas production
locations

Automotive
components
business

Launch of TACoil®,a new bar for reinforced concreteComprehensive updateof steel-making facilities
at Toyohashi Works

Expanded production capabilities
and sales of synthetic mica for cosmetics

CrawlerrobotsCompleted delivery of a prototype
AGV crawler as an alternative to tiretype vehicles

New
fieldsStage 1（2012–2015）

Growth & Change 201515

TOPY Report 20191

Expansion of overseas production locations

2012
Automotive
components

7

Industrial machinerycomponents

2

Industrial machinery Strengthened the tracks supply syscomponents business tem in Japan and Southeast Asia

Synthetic
mica

Maximize capabilities of state-ofthe-art steel-making plants andleverage our strengths in a widearray of products to expand sales
volumes

2018

2018

14
3

7
17

countries
locations・Optimize steel wheels forpassenger vehicle production
systems in Japan
・Strengthen the competitivenessof each production location
・Capture global demand forsteel and aluminum wheels forpassenger vehicles
・Develop appealing products in
response to factors such as theneed for lighter vehicle bodies
and the spread of EV

Increase
Earnings
Power

2
LeverageGroup
Synergies

Engage growth markets and themarket for replacement parts

3
Enhance
Strategic
Products

Capture the growing demand forcosmetics

2017
Development of an
automated driving system for
crawlers that are capable ofmoving left, right, forward andbackward

Stage 2（2016–2018）

Growth & Change 20182019
Expansion of synthetic mica
production capabilities

Make a full-scale entry into
the AGV market

Corporate Data

Strengthened our business foundation for aluminum wheels for passenger vehicles by acquiring Asahi Tec
Corporation as a subsidiary

2014

Major Topics

Sustainability

Cultivated and expanded customer
base through unique products

Challenges

BusinessStrengthened integrated production
system by shifting to state-of-the-art
steel-making plants

Growth & Change
2021

profitable business structure

Results

Growth Strategies

Global Growth and Change to achieve a highly

Results

286.2 billion

Net sales

Growth & Change

2012

Targets

Value Creation

In the series of medium-term management plans with the slogan of“Growth & Change”since fiscal 2012,
the Group has been continuing to promote global“Growth”and“Change”to build a highly profitable business structure.
In the previous medium-term management plan, we achieved quantitative growth, particularly in terms ofnet sales, whereas qualitative transformation still remains to be attained, including our operating profit target,
which has been set as a key issue to tackle in the new medium-term management plan.

Results to Date of Growth & Change (Results compared to FY2018 targets)

4

5

Embrace theChallenge of
Innovation

Further Strengthen
the Management
Foundation

Stage 3（2019–2021）

Growth & Change 2021
TOPY Report 201916

Growth Strategies

New Medium-Term Management Plan
(2019-2021)

Growth & Change 2021
Basic
PolicyAccomplish G&C andprepare for the next stageof growth

Overseas
economyJapanese
economySociety andenvironment● Shift toward automated and easily usable

equipment and facilities● Far-reaching efforts to tackle

environmental burden● Promotion of AI and IoT usage and streamliningof work

Strategic and growthinvestment
JPY

15.0

billion/three years

Maintenance investment
JPY

37.0

billion/three years

・Synergies with Ring Techs Co., Ltd.
Optimize production systems for steel wheels for passenger vehicles in Japan and overseas
and share designs, technology, and purchasing to reduce costs and improve productivity
・Synergies with Asahi Tec Corporation
Coordinate sales of steel wheels for passenger vehicles and aluminum wheels to realize
mutual sales growth and share designs, technology, and purchasing to reduce costs andimprove productivity

FY2021 Targets(Main business result indicators)

Operating Profit

JPY

160 billion(business portfolio)

FY2021
Power generation,
new fields, other

Steel business

3 Enhance Strategic Products・Steel businessDeformed section steel and TACoil®, a new bar for reinforced concrete
・Automotive and industrial machinery components business
Lightweight wheels, high-quality design wheels, and mining vehicle wheels for the replacement parts market, etc.
・New fields
Synthetic mica as a base material for cosmetics, AGV crawler robots differentiated fromexisting tire-system vehicles

4 Embrace the Challenge of Innovation
・Increase investment in R&D and strengthen product and technological development
capabilities
・Utilize IoT at production sites to shift toward smart factories
・Secure and cultivate human resources by fostering creative workplaces through continuous engagement in activities that improve job satisfaction and promote diversity

5 Further Strengthen the Management Foundation[Ｅ] Manufacture at eco-friendly and environmentally conscious production plants and bases[Ｓ] Promote the provision of products that will contribute to society and regional contribution activities[Ｇ] Strengthen the governance system that aims to prevent and minimize risks

Corporate Data

TOPY Report 2019

● Shrinking working population

Major Topics

the Management Foundation

Sustainability

17

the Tokyo Olympics● Falling demand due to low birthrate and aging
population● Increased investment in labor-saving and efficiency● Fall in production numbers of automobiles andconstruction machines

5 Further Strengthen

2 Leverage Group Synergies

and China● Temporary economic downturn after

3 Enhance Strategic Products

Innovation

・Increase earnings power with a focus on operating profit (quality)
・Steadily reap the results of growth measures implemented in G&C 2018
・Implement measures based on customer needs and the Group’s strengths and weaknesses
・Achieve further cost improvements across the entire value chain in response to the expanding
scale of the company● Prolonged friction between the US

slowdown in China

2 Leverage Group Synergies

1 Increase Earnings PowerGrowing overseas demand andshrinking domestic demand● Growth in emerging countries and gradual

Major
Topics4 Embrace the Challenge ofBusinessResource Investment(three years)

Business Environment

1 Increase Earnings Power

Growth Strategies

Growth & Change
2021 Overview

Value Creation

With our priority on increasing the earnings power of businesses that were enhanced under the previous
medium-term management plan, we will strive to expand our ability to generate cash flow for future growth.
We will also aim for sustainable growth beyond our 100th anniversary by continuing to develop new businesses and products that meet customer and social needs.

Automotive and industrial machinerycomponents business

ROS

5.0 %
ROE

8.5 %
TOPY Report 201918

Chapter 3

Business

Steel Business
Value Creation

G&C 2018 Review
We cultivated new customers for product groups that leverage technologies for
manufacturing and processing deformed section steel, an area of strength for the
Topy Industries Group.

Along with satisfying customer needs byleveraging our unique technologies,
we contribute to solving environmental
and social problems.

We have expanded sales of mast rails for forklift trucks to overseas manufacturers.
In the fall of 2018 we launched TACoil®, a densely rolled compact coil of deformed reinforcing bar.
When used with automatic processing machines, TACoil® significantly improves processing efficiency while providing other benefits. It therefore contributes to solving the problems faced by users
in the rebar industry, which includes labor shortages, processing losses, and insufficient storage
space.

Tsuyoshi Nakamura
Operating Officer in charge of the steel business
General Manager, Steel Division

Policies and Initiatives under the New Medium-Term Management Plan
We will further expand sales of strategic products such as deformed section
steel and TACoil® while boosting profitability by maximizing synergies withGroup companies.

Global steel demand is being partly driven by infrastructure-related demand in emerging nations.
The long-term outlook is that gradual growth will continue.
While domestic steel demand should remain strong over the medium-term due to continued largescale construction projects even after the Tokyo 2020 Olympics, this demand could shrink in thelong term.

We will expand sales of unique products that include deformed section steel such as mast steel forforklift trucks and segment members for tunnel construction, as well as TACoil®, a new deformed
reinforcing bar product and the first such product in Japan.

Protectionism is becoming evident in many countries, and many emerging nations are shifting todomestic production.

We will achieve the optimal product mix while maximizing production capacity.

Reducing greenhouse gases, promoting recycling, and other such efforts aimed at making society
more sustainable are becoming increasingly important.

We will promote energy and resource conservation by developing products that leverage unique
technologies and further improving recycling technologies that utilize an electric furnace process.

Features andStrengths

2.Specialist in deformed section steel
We are a specialist in the manufacture of deformed section steel with asymmetric cross-sections.
We cater to diverse customer needs by providing high value-added products, which are developed,
manufactured and fabricated based on our proprietary technologies for manufacturing deformed
section steel utilizing numerical analysis.

3.Wide array of products and high production efficiency
In response to customers’requests for high-mix, low-volume production, we manufacture products
efficiently by maintaining high quality, productivity and yield.

19

TOPY Report 2019

Corporate Data

We will carry out activities in conjunction with Group companies with the goal of reducing costs at
all stages of production, from raw material procurement to product delivery.

1.Steelmaking mill with the latest world-leading equipment
Our steelmaking mill features ECOARC™, an environmentally-friendly, high-efficiency arc furnace
boasting world-leading heat efficiency. By combining this furnace with the steelmaking technologies
of Topy Industries, we have reduced power consumption and increased productivity, resulting in unmatched cost-competitiveness. In addition, the mill is designed to be earthquake resistant in readiness for the Nankai Trough earthquake. This contributes to the stable supply of Group products,
which enjoy large market shares.

Sustainability

MarketEnvironment

Business

Our Business Environment

Growth Strategies

We have developed large, wide flat bars with grooves as segment members for tunnel construction and have begun delivering these products for the construction of the Tokyo Outer Ring Road,
among other projects.

TOPICS

Recycling 24,000 Tons ofWaste Vehicles Annually
Working with Akemi Recycling Center, Ltd., a subsidiarywith one of the largest shredder plants in Japan, we crush
and sort waste vehicles, collect steel, aluminum, and othermaterials, and make use of those materials in steelmaking.
Meanwhile, to raise the efficiency of automobile recycling,
we use the shredder dust as an alternative to the cokeused in electric furnaces. Through efforts such as these,
the Topy Industries Group leverages electric furnace technologies to contribute not only to steel scrap recycling but
also to the recycling of a wide range of resources.

Akemi Recycling Center, Ltd.

TOPY Report 201920

Business(Wheels)

G&C 2018 Review
Along with completing a global supply system to supply steel wheels for passenger cars, we also acquired a new business platform that will facilitate building a
global supply system for aluminum wheels.

Preparations are proceeding as planned for renovating a steel wheel production site in the U.S.
(construction will begin in 2020).
To strengthen our business base in Japan, in 2018 we acquired 100% ownership of the steel wheel
manufacturer Ring Techs Co., Ltd.

Ichiro Takeuchi
Managing Executive Officer in charge of the automotive and industrial machinery components business
General Manager, Wheel Division

To capture rising demand for aluminum wheels, in 2018 we acquired 100% ownership of the aluminum wheel manufacturer Asahi Tec Corporation, which has production facilities in Thailand and China.
Business

Policies and Initiatives under the New Medium-Term Management PlanOur Business Environment

Along with fully leveraging the business platform which we expanded and improved under G&C 2018 and raising profitability, we will promote product development aimed at achieving the next stage of growth.

As a result of economic growth worldwide, global automobile demand is expected to expand in themedium to long term, particularly in emerging nations.
Domestic automobile demand is expected to contract due to, among other factors, Japan’s declining population.
The automotive industry is likely to see further technological innovations along the lines of CASE*
and MaaS**.

Sustainability

In addition to restructuring our domestic production system with Ring Techs Co., Ltd., which has
helped us respond to a downturn in domestic demand for steel wheels for cars, we will boost thecompetitiveness of our overseas production sites through focused investments and continuous improvement.

Mining machinery demand should see moderate growth in the medium to long term, but demand islikely to fluctuate significantly in the short term.

We will make use of our network as a global supplier of steel wheels for passenger cars, an area ofstrength for the Topy Industries Group, and fully leverage synergies as a comprehensive wheel manufacturer in the business of manufacturing and selling aluminum wheels and wheels for commercial
vehicles. These efforts will see us expand sales to major automakers worldwide and gradually capture
globally rising demand.

Protectionism is becoming evident in many countries.
*Connected, Autonomous, Shared/Service, Electric **Mobility as a Service

1.Approx. 90% domestic market share*（steel wheels for trucks and buses）

There are two things wheels need to have in the automotive industry, where technological innovations
collectively known as CASE are ascendant: structures to accommodate sensor installation (Connected), and lightweight products to accommodate the shift to electric vehicles (Electric). Leveraging
its accumulated technologies, the Topy Industries Group will develop appealing products that satisfy
these needs.

We have succeeded in developing lightweight wheels by using deformed section steel producedin our steel business. We also have a base in Indonesia where we cater to the local procurement
needs of Japanese automakers.

Corporate Data

Features andStrengths

Growth Strategies

Strengthening our business and capital alliance with MW Italia S.R.L. in Europe (2016) and establishing a joint venture with Wheels India Limited in India (2017) have allowed us to build a system for
supplying steel wheels with common designs for passenger cars, and to supply them to anywhere in
the world.

Our Completed Global Network,and Maximizing Synergies
as a Comprehensive Wheel Manufacturer

MarketEnvironment

Value Creation

Automotive and Industrial
Machinery Components Business2.Approx. 80% global market share*（ultralarge diameter wheels for mining dump trucks [SGOR®]）Our wheels for mining vehicles are used at mines under harsh conditions all over the world, and are now
a well-trusted product thanks to their track record. We also produce SGOR®, which, with a rim diameterof 63 inches (1.6 meters) and a weight of nearly 3 tons, is one of the largest wheels in the world.

3.Global supply system（steel wheels for passenger vehicles）
We supply steel wheels to all automakers in Japan as an independent wheel manufacturer. We havealso established a global supply system under which our bases in the United States, Mexico, China,
and India and a strategic alliance with MW Italia S.R.L. enable us to cater to the local procurement
needs of automakers from Japan, Europe, and the United States.

4.Broad sales network as a comprehensive wheel manufacturer
As a comprehensive wheel manufacturer, we have a broad sales network in Japan and overseas
comprising major manufacturers of complete automobiles that range from passenger cars to buses
and trucks.

TOPICS
Joint Venture in Steel Wheels for
Passenger Cars Begins Operations at a

New Factory in India
In June 2019, WIL Car Wheels Ltd. “WCWL”(), a joint venture
in India, began operations at a factory (Vanod Factory) producing steel wheels for passenger cars, the third such plant in the
country. In India, a country where automobile production is expected to grow in the medium to long term, the Topy Industries
Group is going through WCWL to steadily capture demand in
the growing segment of steel wheels for passenger cars, enabling us to expand our presence as a global supplier.

Bawal Factory
Vanod Factory
★
★

Vanod

Vanod Factory

Mumbai★ Chennai
Padi Factory*OEM market share (components to be mounted on new vehicles)

21

TOPY Report 2019

TOPY Report 201922

Business（Undercarriage Components for Construction
Machinery）

G&C 2018 Review
In response to a rapid recovery in demand for construction machinery, we have
improved upon our system for supplying Japan and Southeast Asia with tracks,
an undercarriage component for construction machinery. These efforts have seen
us capture significant demand in this segment while gaining further trust from ourcustomers.
We built a new track assembly line (went into operation in 2018) at our logistics facility in Indonesia, expanded on and improved our product lineup, and enhanced our supply capabilities, while at the sametime shortening our lead time and improving our delivery capacity for customers.
We built a new track assembly line at Toyohashi Works (went into operation in 2019), achieved integrated production at the facility for everything from track materials to products, and reduced logistics
costs. Additionally, by improving the upward elasticity of our production capacity, we have been able toachieve more flexibility in the supply of tracks.

Katsuyoshi Tanaka
Operating Officer in charge of the automotive and industrial machinery components business
General Manager, Undercarriage Components Division

Business

Policies and Initiatives under the New Medium-Term Management Plan

Although long-term growth is expected for construction machinery demand worldwide due to the rising global population and advancing urbanization, demand is likely to fluctuate significantly in the shortterm.

We aim to achieve stable earnings and growth supported by the trust we haveearned over the years from construction machinery manufacturers.

Demand is expected to rise for smaller product models as emerging nation populations become increasingly urban.

We will improve our readiness for the supplemental components market as a strategic partner for construction machinery manufacturers.

Protectionism is becoming evident in many countries.

With the goal of sustainable growth, we will continue to plan and build a supply system to serve international growth markets.

Sustainability

MarketEnvironment

Growth Strategies

Achieve stable earnings and growth
as a leading company in undercarriage
components for construction machinery

Our Business Environment

Value Creation

Automotive and Industrial
Machinery Components BusinessWe will identify customer needs and enhance our system for developing new products and technologies inorder to further improve customer satisfaction.

1.Top-ranking global OEM market share for hydraulic excavator tracks

2.High quality level, reliable delivery, and design development capabilities madepossible by integrated production
We ensure a high level of quality and reliable delivery with integrated production from raw materials to
products. We have also received high acclaim from construction machinery manufacturers for our VA
proposals and meticulous services, which we provide by making full use of the design development
capabilities that we have cultivated.

Corporate Data

Features andStrengths

We deliver track shoes and tracks for hydraulic excavators to major Japanese and U.S. construction
machinery manufacturers, which produce the majority of hydraulic excavators worldwide. We areproud of our OEM market share for these products, which is among the highest in the world.

TOPICS
New track assembly line at Toyohashi Works

Environmentally-friendly
factory construction

3.Global Supply System
We strive to improve customer satisfaction by supplying high-quality products to customers all over
the world on a timely basis in accordance with their needs. We deliver these products from our six
production sites: the Kanagawa Factory, Toyohashi Works, Sanwa Buhin, and sites in the USA (Tennessee), China (Qingdao), and Cikarang (Indonesia).

23

TOPY Report 2019

The new track assembly line at Toyohashi Works
helps to reduce CO2 emissions by the integrated production of everything from track materials to products,
significantly reducing shipping volume. The facility also
curbs emissions of volatile organic compounds (VOCs)
by using water-soluble coatings in its coating process.

TOPY Report 201924

Business

New Fields
Value Creation

Becominga Global Niche Leader
in Innovative Technologies

Growth Strategies

Satoshi Fukura
Operating Officer
General Manager, Science Division

Crawler robot

Synthetic Mica

The AGVs we produce use crawler belts for propulsion. Because they excel in getting over rises andhandling rough terrain, they can handle situations such as getting on and off elevators and loading andunloading cargo between platforms and truck beds. We have developed new products that are able
to freely and autonomously move left, right, forward and backward, and we will be fully entering markets where demand is expected to grow as a consequence of the labor shortage.

In the industrial field, since our products have been recognized for their superior barrier performance
as a raw material for food and other product packaging, we will also begin developing products for thepaper and film production markets.

We increased production capacity for synthetic mica for cosmetics in order to capture growing demand.

9th Cosmetics Ingredients & Technology Exhibition (CITE Japan 2019)

TOPY Report 2019

Corporate Data

TOPICS

Increasing Production Capacity for Synthetic Mica
Used in Cosmetics

25

In addition, the market for automated guided vehicles (AGVs), which will involve the use of robots inthe logistics field, is growing.

Policies and Initiatives under the New Medium-Term Management Plan

Our synthetic mica has received high acclaim for its high translucency and safety as a base material
for cosmetics. We will add to our synthetic mica product lineup, including original products such ascolored mica that combine a soft feel with superior adhesion, and expand product sales in Japan andoverseas.

TOPICS

Japan’
s robot market is expected to see rapid growth due to the country’s shrinking labor pool and theadvance of automation in this fourth industrial revolution.

Sustainability

Policies and Initiatives under the New Medium-Term Management Plan

MarketEnvironment

Business

MarketEnvironment

Demand for cosmetics, the primary application for synthetic mica, continues to grow worldwide due
to economic growth, a growing female workforce, and other factors, suggesting further expansion
ahead.

Crawler robots used in a range of fields
We will actively enter the AGV market by relying on the technologies we have accumulated in manufacturing survey
and exploration robots and on the trust we have earned from our many customers.

Recovery solutions for
Fukushima Daiichi NPP

Accident response
and maintenanceMaritime surveys supported
by JAMSTEC

Distribution warehousing

Agriculture

TOPY Report 201926

Business

Global Expansion of
the Topy Industries Group

Icon Legend (products produced at each base)

To capture some of the global increase in demand for automobileand construction machinery, we are expanding and strengthening
the global supply system for our automobile and industry machinerycomponents business.

Wheels fortrucks andbuses

Wheels for pas- Wheels for passenger vehicles senger vehicles(steel)(aluminum)

SGOR®

Industrial
fasteners

Alliance
partner

Value Creation

Undercarriage
components
for construction
machinery

TOPICS
United States
Wheels for passenger vehicles (steel)

To provide our customers worldwide with high-quality products that satisfy their needs,
the Topy Industries Group is opening new production and sales facilities and conducting businesswith its alliance partners.

Topy America, Inc.
Growth Strategies

Updating our production line (operations to begin in 2020)

Europe（France, Poland, Romania, Russia, and Turkey）

United States

China（MW Italia S.R.L.）

Topy America, Inc.
Topy Precision Mfg., Inc.

Fujian Topy Autoparts Co., Ltd.
Ring-Techs Guangzhou Co., Ltd.
Guangzhou Wheelhorse Asahi
Aluminium Co., Ltd.

Japan

Topy Industries, Ltd.
Ring Techs Co., Ltd.
Kyushu Wheel Kogyo, Ltd.
Topy Fasteners, Ltd.

India
WIL Car Wheels Ltd.

MexicoTopy MW Manufacturing Mexico S.A. de C.V.

Topy Fasteners (Thailand), Ltd.

Topy Fasteners Mexico, S.A. de C.V.

Indonesia

South Africa

PT. Topy Palingda
Manufacturing Indonesia（MW Italia S.R.L.）

VietnamPT. Topy Undercarriage Indonesia

Topy Fasteners Vietnam Co., Ltd.

（PT. Inkoasku, PT. Pakoakuina）

TOPICSTOPICS
India

Indonesia

Wheels for passenger vehicles (steel)

Undercarriage components forconstruction machinery

WIL Car Wheels Ltd.
The newly opened Vanod Factory, a joint venture (2019)

TOPY Report 2019

Corporate Data

ThailandAsahi Tec Aluminium (Thailand)Co., Ltd.

27

Sustainability

Guangzhou Dicastal Asahi
Aluminium Co., Ltd.

Business

Topy Undercarriage(China) Co., Ltd.

PT. Topy Undercarriage Indonesia
New track assembly line in operation since 2018

TOPY Report 201928

Chapter 4

Sustainability

Sustainability Initiatives of
the Topy Industries Group

Corporate Basic Philosophy of the Topy Industries GroupAt the Topy Industries Group, we see our relationship with stakeholders as shown below and aim to achievesustainable growth by deepening mutual understanding through the six loops.

Value Creation【The Topy Industries Group Corporate Basic Philosophy】
Win the trust and respect of society through the continuance and development of
the Topy Industries Group and the execution of one’s duty as a public institution.

Customers

Local communities

Loop of trust

Loop of symbiosis
As acorporate
citizen

Evaluation
Trust－ To win the trust and respect of society －Under the Corporate Philosophy, the management and employees of the Topy Industries Group shall strictly abide by all applicable laws
and ordinances, the spirit reflected, and the Corporate Code of Conduct, while accepting full corporatesocial responsibility and fostering an open-minded and creative corporate culture.

Sense offellowship
Trust

Article 1 For the benefit of customers

Article 6 Technology and know-how innovation

Produce and supply, high-quality and safety-oriented merchandise and service to gain customers and consumer confidence.

Seek widely for knowledge and information both domesticallyand internationally, and continue the innovation of technology
and knowhow by refining distinctive technologies and professional competence.

Article 2 For the benefit of society
1. Communicate widely with society as well as shareholders andactively disclose corporate information fairly and appropriately.
Cooperate with local communities and actively work on social
contribution activities as being a good corporate citizen.
2. Oppose resolutely any anti-social forces and parties posing amenace to social orders and security.

Shareholders andinvestors

Fair
corporate
activities

For thebenefit ofsociety

Loop of growth
Human
resource
development
Safety andhealthFor thebenefit of
employees

1. Top management shall make example by leadership and inform the strict adherence to the Code of Conduct and ensure
the compliance of the corporate ethics effectively administrating its management systems.
2. If and when any of the Code of Conduct is violated, management shall demonstrate an indomitable determination topersonally solve the issue by launching an investigation andshall take actions to prevent the recurrence of such incidents.
At the same time, top management shall make full disclosure
within and outside the company promptly and precisely, and,upon determining the source of competence and responsibility, impose strict disciplinary action against those held responsible.

Respect the individual character and personality of employees,
and provide safe-working environments allowing them to workwith enthusiasm, and attain fulfilling lives.

Employees

Group Basic
Philosophy

Article 8 Responsibilities of top management

Skill
improvement
Enthusiasm

Article 4 With the world
Pay due respect to different cultures and customs of all countries
and regions, and perform business activities to contribute to thedevelopment and well-being of local communities.

Article 5 With the environment
Realize that a sensible approach to environmental conservation
is essential to the existence and activities of the company, andbehave voluntarily and actively.

ESG Initiatives of the Topy Industries GroupTopy Industries’approach
Environmental and social issues
Business opportunities

Business partners

Group Code of
Conduct
Working inharmony
with theenvironment

Workingin harmony
with theworld

Environment
and technologies

Loop of collaboration
Value
Trust

Technologicalstrength
Analysis andmeasurement

Fully consider the growth and safety of
employees working in the Topy Industries
Group and make the most of their skills andenthusiasm. Build a relationship to ensurethat both employees and the corporation
can grow.

Recycling
Acceleration of global warmingE

Environmental
philosophy
Basic policy for theenvironment

Water and resource depletion

Environmentally-friendly
product development

Global warming
reduction initiatives

Recycling business

Chemical management

Air pollution
Waste reduction initiatives

Loop of recycling
Valuablenaturalresources

Products enhancing
work efficiency

Skilled worker shortages

Environmental
impactreduction

Response to risks and regulations

S

Promotion of responsible
procurement

Tightening of laws andregulations in countries

Supplying safe, secure products(quality assurance)
Local economic
development

Make use of technologies and values
possessed by both parties through fairand equitable dealings, and establish acollaborative relationship across the entire
value chain by actively providing analysis,
measuring, and other such technologies.

Proactively carry out initiatives for recycling
precious natural resources as a company
that is committed to recycling, and work to
reduce environmental burden in everyday
life.

Supporting
systems

TOPY Report 2019Local job creation

System for promoting
environmental activities

Small group activities

Diversity

Strengthening
governance

Global management

Supply chain
management

Communication
Promotion Committee

Recruitment and developmentof globally competitive humanresources

Risk management system
BCP (Business Continuity Plan)

ComplianceE
29

Corresponding
SDGs

Corporate Data

Innovation intechnology
and knowhow

Respond to shareholders’and investors’
expectations toward the Topy Industries
Group through sustainable business growthand highly-transparent corporate information disclosure, and establish mutually
beneficial relationships.

Sustainability

Sustainable
development
Return of
profits

Operate business in a fair and transparent manner under freecompetition and appropriately keep an arm’s length distancefrom politics and administrative agencies.

Article 3 For the benefit of employees

For thebenefit ofcustomers

Responsibilities
of seniormanagement

Loop of expectations
Information
disclosure
Relations

Fulfill responsibilities as a member of the local community, actively promote communication, and engender a feeling of fellowship
for achieving growth together.

Article 7 Fairness in corporate activities

Business

Supply safe and high quality products tocustomers, establish an environment where
customers’evaluations of our products arerepeatedly fed back to the production site,and build solid trust.

Growth Strategies

Quality
Safety【The Topy Industries Group Corporate Code of Conduct】

S

G
TOPY Report 201930

Sustainability

Sustainability

Environmental Initiatives

Environmental Initiatives

Nature of
Our Business

Environmental Management

Recycling

Environmental
Philosophy【Basic Environmental Policy】

Environmental conservation structure(Topy Industries)

As part of its duty as a corporate citizen, Topy Industries
ranks continuous improvement under the ISO 14001 environmental management system as among its top management priorities. Topy Industries has therefore established andimplemented the following policies.

Topy Industries is a recycling corporation
Topy Industries manufactures steel products using scrap irongenerated in the course of consumption and production activities around the world. In this business model, we have a vitalrole to play in production activities within society’s recycling

President
Collected by Group companies

１. Complying with the Law

２. Working to Save Energy and Prevent Global
Warming

Central Environment
Committee

In all its manufacturing processes, Topy Industries will proactively strive to save energy and reduce greenhouse gases.

Directors

Director in Charge of Environment
General Managers of Factories
General Manager of General Affairs Dept.
Representative of Labor Union

３. Reducing Our Environmental Footprint• Tojitsu Co., Ltd.
• NE-Tojitsu, Ltd.
• Akemi Recycling Center, Ltd.

Waste
(scrap)

In order to bolster environmental management, Topy
Industries will undertake cost-conscious efforts to reduce
its environmental footprint by saving energy, lowering greenhouse gas emissions, using fewer resources, and recycling.

Environment
Sub-Committee

Reuse of materials

31

TOPY Report 2019■ISO 14001 Certification Status (Topy Industries)
Factory

ISO 14001
certification
obtained

Transition to 2004
versionTransition to 2015
versionToyohashi

Apr. 1999

Completed inFeb. 2006

Completed in
Apr. 2018

Toyokawa

Nov. 1998

Completed in
Oct. 2005

Completed inAug. 2016

Ayase

Nov. 1998

Completed in
Nov. 2005

Completed inAug. 2016

Kanagawa

Jun. 1999

Completed inJun. 2005

Completed inJun. 2017

At Topy Industries’Toyohashi Works, we produce various steel
sections from molten steel made in an electric furnace. We
have two sources of scrap iron, which is the major material forour steelmaking process: scrap gathered in-house and scrap
procured externally. A substantial quantity of steel sections
produced by the Steel Division is shipped to the Wheel Divisionand the Undercarriage Components Division to be used as raw
materials in the production of various wheels and undercarriage components.

In-house recycling system
Use as materials

Corporate Data

Since the Wheel Division (Toyokawa and Ayase factories)
launched a program to acquire ISO 14001 certification to promote environmental conservation activities in February 1998,
all Topy manufacturing sites have undertaken the certificationacquisition program, which was completed in June 1999.
Proper maintenance of our environmental management system has been confirmed through regular audits after this initialcertification. We continue to carry out environmentally-friendly
production activities by promoting scheduled and systematic
environmental initiatives in line with our Basic Environmental
Policy.

Steel Div., Wheel Div.,
Undercarriage Components Div.

Environment staff of each factory

６. Conserving the Environment in Overseas
Business Activities

ISO 14001 certification

A variety of hot rolled steel materials
are made from recycled materials, andwheels, shoes, and track shoes are
manufactured by processing some ofthese materials.

Recycles and reuses scrap ironto produce steel（Steel Division）

Factory Environment
Committee

Sustainability

Engineering Administration
Dept.

Topy Industries will develop environmentally-friendly products at every stage in their life cycle, from design and production to use and disposal.

Topy Industries will remain mindful of its impact on local
environments and implement measures in accordancewith the needs of local communities.

Products

Recycling Systems in Society

Environment
Office４. Developing Environmentally Conscious Products

Topy Industries will promote understanding of its environmental policy and raise environmental conservation awareness through environmental training and enrichment for its
employees.

MarketConsumption andproduction activities

Business

Executive Management
Meeting

Topy Industries will comply with all environmental regulations,
protocols, and agreements in its manufacturing activities.

５. Raising Environmental Awareness and Preserving
the Environment at the Global Levelsystems. Furthermore, we implement an original recycling system within our production flow for the reuse of resources.

Growth Strategies

We believe it is our duty to preserve a rich and beautiful world for future generations to enjoy. In partnershipand solidarity with local communities, we will work to promote continuous improvement in everything we
make—from materials to finished products—to lay the foundation for the sustainable development of society.

Value Creation

Environmental Philosophy andBasic Environmental Policy

ShapesSteelwheelsConstruction machinery components
Industrial machinery components

Wheel
Div.

Undercarriage
Components
Div.

Melting/rolling

Electric
furnace

ScienceDiv.

Steel Div.

Waste
Recycling

Slag

Civil engineering
materials

Waste paper

Recycled paper

Steel

Scrap ironin the market

TOPY Report 201932

Sustainability
Environmental Initiatives

Business
Opportunities

Recycling of end-of-life vehicles, end-oflife vending machines, and other waste

Development of Environmentally-friendly Products■Recycling flow chart
End-of-life vehicles

Disassembly and CFC
recovery
Shredding and screening

Shredded iron
scrap

Shredder dust

Nonferrous
scrap

Volume reduction
and solidification
Electric furnace steelmaking
and rolling

Wheels that reduce vehicle weight and improve collision safety

Topy Industries has developed ISO-compliant wheels, which
are about 15% lighter than corresponding conventional wheels,by combining an ECOD-processed disc with a corrugated rim
created with the company’s proprietary weight reduction technology. The corrugated rim is made from a rim section of an
uneven thickness and corrugated tire-mounting surface, giving
it optimal thickness distribution when roll-formed. The corrugated rim is a product of our integrated production system,
which enabled us to combine our proprietary hot-rolling steelmaking technologies with wheel analysis and design technologies. The ECOD disc is formed through cold spinning (rocking
die forming) tubes made of steel plate. This enables a thinner,
lighter disc while also ensuring the required strength.

Aiming to simultaneously boost fuel efficiency (conserve energy) by reducing chassis weight and improve collision safety,
automotive manufacturers are using more parts made fromhigh-strength steel sheets, which allow the sheets to be madethinner. In response, we are turning to high-strength section
steel rim materials, which are used in making wheels for trucks
and buses. A challenging issue for the raw material was how
to attain uniform strength. We have succeeded in commercial
production thanks to our proprietary hot-rolling technologies
for controlling material thickness and temperature.

Overall thickness distribution was redesigned

Smelting andprocessing

Recycled
crushed stone

Nonferrous
products■Volume reduction and solidification
Shredder dust is reduced in volume and solidified into shapes
optimal for use in electric furnaces. The resulting product isused as an alternative to coke in the electric furnaces at Topy
Industries’Toyohashi Works for thermal recycling.

Product drawing

Sustainability

Steel

Hot-rolled, high-strength rim material

Helping improve fuel efficiency with about 15% lighter weight

Business

Corrugated rim

Non-chrome pre-treatment of aluminum
wheel painting

Ultra-large diameter wheel for mining
dump trucks (SGOR®)

An industry first for chromium-free processing

The world’s largest wheel contributing to efficient mining
operations and hauling

Aluminum alloy wheels have long been surface-treated toachieve long-term corrosion resistance and anti-discoloring,and treatment with chromium was thought to be essential toconfer anti-corrosion properties. However, in view of European
environmental regulations, Japanese automobile manufacturers have turned their attention to surface treatments that avoid
the use of heavy metals such as chromium. Topy Industries
has spent substantial time on the study and technological development of alternative materials to replace chromium, and is
the first in the industry to succeed in creating a chromium-freeprocess.

SGOR® (Super Giant Off-the-Road Rim) wheels are ultra-large diameter wheels that we have developed for dump trucks used atlarge mines across the world. Currently, the largest wheels available have rim diameter of 63 inches (about 1.6 m), are 44 inches(about 1.1 m) wide, and weigh as much as 2.83 tons each, making them about five times the diameter of ordinary passenger car
wheels. SGOR® wheels meet the demanding requirements ofmining applications in terms of functionality and hauling capacity,and contribute to reducing environmental burden.

Corporate Data

■Shredding and screening
ELVs, end-of-life vending machines, and other waste arecrushed into tiny pieces with blades attached to a cylindricaldrum that rotates at high speed in the shredder. The shredded
pieces go through various screening processes in which they
are sorted out into iron, nonferrous metals (e.g., copper andaluminum), and shredder dust (e.g., plastics and rubber)End-of-life vending
machines

Lightweight wheels

Growth Strategies

Akemi Recycling Center, Ltd. was established in 1991 as amember of the Topy Industries Group. Since then, the company has been recycling large volumes of iron scrap, end-of-life
vehicles, and industrial wastes into major raw materials for producing steel and aluminum by making full use of its shredder
plant, which is among the largest in Japan.
In 2004, Akemi Recycling Center and Topy Industries jointly
developed a technology for recycling automobile shredder residue (ASR), which is generated when shredding end-of-life vehicles (ELVs), into an alternative to cokes used for electric furnaces. The companies established ASR recycling facilities andcreated the ideal recycling system that produces zero waste.
In 2013, Akemi Recycling Center significantly improved thequality of iron and nonferrous scrap obtained from ELVs andother industrial wastes by increasing the dust collection capacity of the shredder line and building a new line for screening out
nonferrous metals.
The company also works to protect the environment by recovering CFCs from end-of-life vending machines and similar
wastes while screening out fluorescent lamps and dry cells in
advance.

Value Creation

Recycling business (Akemi Recycling Center)

Combustion improverfor electric furnaces

End-of-life vehicles andvending machines

A machine for reducing the volume of shredder dust and solidifying it

Shreddediron scrap

33

TOPY Report 2019

TOPY Report 201934

Sustainability
Environmental Initiatives

Risk Response
Value Creation

Initiatives for Preventing Global Warming
Reduction of CO2 emissions

469

488

507

526

520

Biodiversity
Preservation

200
100
0

2014

2015

2016

2017

2018
（Fiscal year）

Energy Conservation Meister Meeting
Kickoff
To further promote energy saving, Topy Industries has implemented the Energy Conservation Meister Program at all companies. Energy Conservation Meisters propose and give advice ontasks to all employees up to factory manager level at their production sites, while also playing a leading role in energy-saving

The business and manufacturing operations of Topy Industries
do not involve activities such as deforestation and other activities that may disrupt the ecosystem. We recognize that biodiversity conservation and global warming prevention are essential for a sustainable society. As a part of efforts to conserve
biodiversity and forest resources in developing countries, we
encourage the use of paper made from domestically-produced
materials and recycled paper.

1,500,000

0

2014

2015

2016

2017

2018
（Fiscal year）

Chemical Management
Substance emissions and management
under the PRTR Act
In accordance with the PRTR Act (the Pollutant Release andTransfer Register Act; the Act on Confirmation, etc. of Release
Amounts of Specific Chemical Substances in the Environment
and Promotion of Improvements to the Management thereof),business entities that handle chemical substances are obliged
to manage and report to administrative offices the amount ofenvironmental emissions and transfers of chemical substances that are hazardous to humans and ecosystems at each of
their business sites. Based on this system, we submit annual
reports to the respective regulatory bodies while also using
this process to continuously manage chemical substance andemission reductions. FY2018 saw a reduction over FY2017 asplanned, and further systematic reductions will be made.

Total amounts of environmental releases andtransfers of substances regulated under the PRTR Act
（ton）
600

Biodiversity Initiatives

2,000,000

500,000

400
300

2,500,000(Topy Industries)

Air pollution prevention initiatives
With the revision of the Air Pollution Control Law in May 2004,
it became necessary to comply with regulations governing
VOC emissions, and a reduction of 30% compared to FY2000
on a year-on-year basis was presented as the domestic reduction target by the end of FY2010.
As a proactive approach for the prevention of air pollution,
Topy Industries voluntarily measures VOC concentrations from
VOC generating facilities at its four major factories while also
reviewing actions items related to production technologies forthe reduction of emissions.
Due to an increase in production volume, FY2018 emissions
were higher than the FY2017 level. However, the emissions
level—roughly a 75% reduction compared to the FY2000
level—was far below the guideline level established in the Air
Pollution Control Act.
We will continue striving to reduce the emissions in a wellplanned manner.
Total amounts of environmental releases
and transfers of VOC(Topy Industries)

（ton）
700

546

Corporate Data

500

Industrial water

1,000,000

Pilot introduction of a solar power generation facility
We are promoting Energy Saving Action 2020, which aims topreserve the global environment through energy conservation.
As part of the Promotion of Energy Efficiency Investments, themain initiative of Energy Saving Action 2020, we have experimentally deployed a solar power generation facility at the Toyohashi Works and began assessing it in March 2014. The facility
has a total solar panel area of 270 m 2 and estimated output
of some 46,000 kWh per year. In the pilot deployed, threedifferent panels (single-crystal panel, multi-crystal panel, and
CIS panel) were installed at the same time to compare output
and power generation characteristics. In another experiment,
we laid oxidized slag aggregates produced in-house on the
ground of the pilot facility to check their effectiveness for preventing weeds and their effects on the pilot equipment and its
power generation performance. Through these and other initiatives, we are striving to help protect the global environment ina variety of ways.

Clean water

Sustainability(Topy Industries)(thousand ton-CO2)600

To conserve water resources, Topy Industries is working to
reduce water consumption by circulating and reusing coolingwater at its factories. Also, to prevent environmental pollution,
we are using treatment facilities to purify our drainage to within
environmental regulatory limits.

Well water, etc.

（ton）
3,000,000

Business

CO2 emissions from energy sources

Water Resource Conservation Initiatives

Growth Strategies

Every Topy Industries factory undertakes a range of improvement activities appropriate to the products and production
equipment it handles to achieve the CO 2 reduction target
outlined in the Action Plan for Low Carbon Society stipulatedby the Japan Business Federation. In FY2018, CO 2 emissions
from energy sources at Topy Industries were 520,000 tons,
which is below the FY1990 level set as the target. However,the volume has been rising since FY2015 due to the increaseof crude steel production with the commencement of a newsteel-making facility. In view of the anticipated increase in energy usage associated with growing production in the future, wewill introduce further controls and improvements to curb the increase in energy consumption. The amount of CO 2 emitted byTopy Industries is regularly reported to the relevant government
authorities through data that includes emissions from its offices
and emissions from energy management factories designatedin the Revised Act on the Rational Use of Energy, which cameinto effect in 2009. With regard to the Ayase Factory and the
Kanagawa Factory in Kanagawa Prefecture, we submit ourplans for counteracting global warming in our business activities in accordance with Kanagawa Prefecture’s ordinance topromote measures against global warming. In FY2010, we
began reporting the actual CO 2 emissions and improvementsthat we have made in accordance with our reduction plan. For
the Toyohashi Works and the Toyokawa Factory in Aichi Prefecture, we submit our plans to tackle global warming to theprefectural government by following the regulations stipulated
in prefectural ordinances.

activities throughout the site. Since thisfiscal year, Energy Conservation Meister
Meetings have also been held regularly
to promote energy-saving activities.
For its outstanding achievements, theKanagawa Factory, which was the firstsite to implement the Energy Conservation Meister Program, received the
Chairman of the Energy Conservation
Center, Japan Award in the Best Practice Category of the Energy Conservation Grand Prize for FY2017, which
is hosted by the Energy Conservation
Center, Japan and sponsored by the
Ministry of Economy, Trade and Industry.

Water consumption (Topy Industries)

630.6

600

500

500

400

339

338

359

300

320

400
300

200

200

100
0

163.9

118.9

100
2014

2015

2016

2017

2018
（Fiscal year）

0

2000＊

2014

2015

103.0

112.9

2016

2017

155.7

2018
（Fiscal year）*Figures for 2000 do not include Toyohashi.

35

TOPY Report 2019

TOPY Report 201936

Sustainability

Sustainability

Environmental Initiatives

Social Responsibility

Relationship with
Customers

Risk Response

Waste reduction and recycling

Industrial waste emissions and recycling rate
(ton/month)

Industrial waste emissions(Topy Industries)
Recycling rate

18,00016,000

97.1％

96.3％

97.1％

96.6％ 95.7％

14,00080％

10,000

60％

8,000

40％

6,000
4,000

20％

2,000
0

2014

2015

2016

2017

0％

2018
(Fiscal year)

Topy Industries uses various types of metalworking oil in its
manufacturing processes, and the reuse of such oil has become one of the major concerns in terms of environmental
impact. At the Ayase Factory, used metalworking oil is purified
and reused. We plan to deploy this system at all other factories.

37

TOPY Report 2019■ Quality Management Structure
President’s quality
review

Formulate president's quality policy

President Review factory quality
Issue instructions in response to criticalquality problems

Central qualitycommittee

At least once
per yearUse genchi genbutsu to verify
the degree to which thepresident’s quality policy has been
implemented

FY2018–2019 Quality Policy
Everyone shall take responsibility for quality, gaining trust andsupport from customers, and achieving zero complaints～ Quality shall be maintained throughout the company toachieve sustainable growth and become well-respected ～Two times
per year• Report and follow up on quality
policy implementation and quality
cost transitioning (regular meetings)• Conduct audits to verify the effects ofmeasures taken against criticalquality issues by the chairperson andvice chairperson of the committee(extraordinary meetings)
Committee members:
Chairperson, vice chairperson,and other members

Engineering Administration Dept.

Formulate division quality policy

Division head
personnel
withoverall
responsibility
for quality

Conduct division quality audit
Conduct Group company quality audit
Work as a member of central qualitycommittee
Judge the necessity of reporting quality
issues to the president at headquarters

・Central quality committee office・Office for president's quality review
・Office for quality divisional managers meeting・Support reporting on critical quality issues to thepresident and the risk management committee

・Participate as auditing members in division quality
audits and Group company quality audits

Managing rank (responsibility and authority)

Mechanism(Committee, motivation boosting, etc.)

Effective utilization of electric furnace
slag (electric furnace slag for recycled
road-bed material)
The electric furnace slag for recycled road-bed materials (product name: ECO StoneTM) is a recycled roadbed material madeby crushing, sheaving, and mixing oxidized slag and reduced
slag. The ECO Stone™ obtained a license on August 31, 2014
under the Aichi Prefecture Recycle Materials Evaluation System (pet name: AIKURU), which started in 2002. The license
certifies that the materials meet quality, performance, and environmental safety requirements, and that they can be used for
public works (Certificate Number: 2)-201).
ECO Stone™ passes environmental standards by a wide
margin in terms of elution and inclusion of hazardous materials.

Quality division
managers meeting

Approximately
four times per year

Enhance the system and actively
exchange information• Quality assurance division managers• Engineering Administration Dept.

Factory
generalmanager

Formulate quality policy for factoryManagement in QMS

Implement PDCA based on ISO 9001 Quality
Management System

Groupcompany
president

Formulate president's
quality policy
Management in QMS

Implement PDCA based on ISO 9001
Quality Management SystemInaccordancewith current
ISO 9001

Corporate Data

Metalworking oil recycling throughpurification

1. Always anticipate the expectations and needs of customers ahead of time, react to their requirements promptly and precisely,
and continue to introduce and deliver quality products and services that satisfy customers
2. Focus on building quality in the design and development stages, and stabilize product quality while improving reliability
3. Recognize the importance of education and training and enhance the quality awareness of all employees at the company
4. Recognize that quality defects are caused by multiple factors and promptly investigate the true causes of problems to makesubstantial improvements

Sustainability

12,000100％

Topy Industries is committed to making customers its first priority and strives to contribute to society by delivering safeand high-quality products and services that always satisfy customers, while continuously improving the effectiveness of
its quality management system (QMS).

Business（ton）Toyohashi Works has deployed a slag cooling facility andcrushing facility to separate, treat, process, and recycle oxidized slag generated within the electric furnace during therefining process, and has reduced the slag discharged fromthe ladle after continuous casting subsequent to the refinery
process. In April 2013, the factory obtained“JIS A 5011-4:
Slag aggregate for concrete Part 4: Electric arc furnace oxidizing slag aggregate”certification. In December 2013, thefactory acquired another certificate for the Revised JIS A 50114 and started to produce and sell electric furnace oxidized slag
aggregate for concrete.
Oxidized slag aggregate has a larger specific gravity thannatural materials such as sand and gravel which have traditionally been used as concrete aggregate materials, and wetherefore expect slag to be used for heavy concrete aggregate
such as wave dissipation blocks. Increasing sales of oxidizedslag aggregate for conl as it reduces the extraction of natural
aggregate materials and thus mitigates its impact on the natural environment while also curbing energy consumption. We
will continue working to reduce our environmental load by reviewing our business activities.

Quality Assurance Philosophy

Growth Strategies

A part of the metal scrap (steel) generated during production
activities is reused directly in-house as a raw material in electric
furnaces. As for other waste, we are engaged in reducing final
waste disposal volumes through re-resourcing efforts such ascollecting scrap iron and collecting zinc from melted dust. At
least 90% of oxidized slag generated from steelmaking is recycled and reused for civil engineering and concrete materials.
The amount of discharged industrial waste decreased about
10% year-on-year in FY2018 due to a drop in crude steel production, among other factors. The recycling rate was a high
95.7%.
We continue to promote recycling and reduce final disposal
volumes of industrial waste by expanding and improving our3R activities.

Effective utilization of electric furnace
slag (electric furnace oxidized slag
aggregate)

Value Creation

Initiatives for Reducing Waste (Topy Industries)

Awards from Customers
For the seventh consecutive year, we have been certified
as a Platinum Level supplier of wheels for mining vehicles
in Caterpillar’s 2018 Supplier Quality Excellence Process(SQEP). Platinum Level is the highest level, and SQEP isa program under which Caterpillar Inc. certifies excellent
suppliers every year based on its own criteria. Suppliers areevaluated comprehensively in terms of various requirements.
Certification criteria are well-defined and consist of fourlevels: platinum, followed by gold, silver, and bronze. This
year, only six out of more than 8,000 suppliers have received
Platinum certification for seven or more consecutive years.

Such suppliers are very rare, making this certification a true
honor. We also received the Silver certification as a supplierof undercarriage components for construction machinery.
We will continue making continuous improvements toenhance our collective strengths and gain further trust from
customers. We have also been commended as an excellent
supplier by Hino Motors Manufacturing Indonesia for our
truck and bus wheels and by Fiat Chrysler Automobiles (FCA)
for our passenger car wheels.

TOPY Report 201938

Sustainability
Social Responsibility

Relationshipwith Society

TACoil® deformed reinforcing bars

（1）Product name : TACoil®
（2）Sizes : D10, D13, D16（3）Features:
1) Combined with an NC processor, it significantly increases processing efficiency and resolves labor shortages.

3) Highly dense and compact, it saves storage space
while enabling excellent transportation efficiency.
4) Maintains the same performance as existing deformed
reinforcing bars even when used as a straightened bar.

（1）Features
1) Providing a high driving force with a wide ground contact area, it enables the vehicle to travel on rough roads.
2) Its high horsepower enables it to climb up and down
hills.
3) It moves left, right, forward and backward while facingin the same direction, making it unnecessary to turnaround. It can therefore travel in narrow and complex
spaces.
4) Thanks to its high positioning accuracy, it stops precisely at the desired point.

Backward

Right(Head Office) Support for the Shinagawa Kids’Cafeteria
Network

In March 2019, eight students from Koriyama Shiritsu Otsuki
Junior High School in Fukushima Prefecture visited the company as part of the career
education support activities
conducted by the NPO School
Support Center. We hope thiseffort helped to broaden thestudents’view of society andbenefit them in the future.

(Toyohashi Works) Environmental conservation activities■ Factory tour for elementary school students

In solidarity with the Environmental Conservation Management Program, we carry out
conservation activities twicea year in areas around thefactory. A total of 93 people
took part in FY2018, collecting
roughly three truckloads oftrash from beaches near thefactory.

As part of our efforts to communicate with local communities, our factories provide tours
to local elementary schools
and other such organizations.
Allowing participants to see,touch, and feel where products
are made, the tours have beenvery popular experiences.

Example use for saving labor in
agriculture● Spraying chemicals onto andtransporting agricultural crops(automatic follow-up in harvesting)*Joint marketing with Ginza Farm Co., Ltd.

NC processor (exhibited at Tekkin Expo,a trade show on reinforcing steel)

Suggestions for saving labor in
logistics● Loading and unloading trolleys
onto and from trucks at logistics
warehouses

Example use for saving labor inconstruction

In conjunction with the city of
Toyokawa, in June 2018 we
conducted fire drills simulating
the outbreak of a fire. These
joint drills help us to build arobust system of mutual assistance with local communities
while ensuring their safety andstrength.

(Ayase Factory)“Agreement on the Use of Facilities
during Disasters”signed with the city of Ayase
As part of the Ayase City Urban Development Plan for Disaster
Readiness, in July 2018 we signed an agreement with the citythat allows it to use our Ayase Factory in the event of a disaster. The city can now use the factory as a temporary shelter for
victims of earthquakes or otherdisasters.

Support for cultural activities and sports
As a good corporate citizen, we continue to support culturalactivities and sports in a low-profile manner by working together with local communities.
In cultural activities, we
co-sponsored the special exhibition“Insects”as well as
the planned exhibition“Under
Construction!”In the field ofsports, we continue to be an
official sponsor of the San-En
Neophoenix, a profession- SGOR®, ultra-large diameter wheels foral basketball team in the B. mining dump trucks, as shown during
League. Our sponsorship, the“Under Construction!”planned
exhibition
which began last year, is basedout of the city of Toyohashi.
We will continue to engage insupport activities for revitalizing
local communities and otherpurposes.

Corporate Data

Left
Forward■Workplace visits for junior high school students

Of the Head Office’s stocks of emergency provisions for disasters, we donated 600 meals that are one year from expiration
to the Shinagawa Kids’Cafeteria Network, an organization
run by the Shinagawa City
Council of Social Welfare. We
will continue making such donations to help combat foodwaste and contribute to local
communities through such
new CSR activities.

(Toyokawa Factory) Joint fire drills with the city of
Toyokawa
Densely rolled compact coil is drawn and put
into the NC processor.

Tours for Elementary and Junior HighSchool Students

Sustainability5) It drives itself by detecting landmarks (fixed poles) via alaser sensor and functions for preventing collisions andavoiding obstacles.

Activities Being Conducted at Each Site

Business2) It is capable of minimizing the loss generated during theprocess and increasing the yield rate.

We are striving to spread this product in a wide range of areas
as a tool for addressing the labor shortages in diverse industries.
Example applications include harvesting and conveying agricultural crops and conveying goods in logistics warehouses.

Contribution to Local Communities

Growth Strategies

TACoil® is an advanced solution to problems faced by users
in rebar industry, such as labor shortages, processing losses,
and storage space.

Crawler mechanism for moving left, right,
forward and backward OMNICRAWLER®

Value Creation

Contribution through Business Products with high work efficiency● Transportation of heavy goods atconstruction sites
Crawler TO, for robot-assistedtransportation
Examples of a TACoil® processed with an NC processor

39

TOPY Report 2019

* Jointly developed with Takenaka
Corporation and Okaya & Co., Ltd.

TOPY Report 201940

Sustainability
Social Responsibility

Relationships
with Employees

Human resource development
thusiasm, and attain fulfilling lives.”We promote initiatives forreinforcing our human resources in the belief that they are ourgreatest asset and that improving their capabilities creates ourvalue itself.

The Topy Industries Group declares in Article 3 of the Code of
Conduct (for the benefit of employees) that it will“Respect theindividual character and personality of employees, and provide
safe working environments that allow them to work with en-■ Training Programs (Topy Industries)■ New employee training
We provided Topy Juku, a new employee training program,during a four-month period from mid-April 2018. The training
was provided to 18 trainees, who were allocated to different
factories to receive on-the-job training and practical training.
The on-the-job training saw participants learn the fundamentals of manufacturing through actual tasks at production sites,
while in the practical training they took part in continuous improvement activities under the guidance of senior workers. In
July 2018, a debriefing session on the training was held at theheadquarters, and all of the Topy Juku trainees reported on
their achievements from the training.

TOPY Report 2019

Training on Jishu Kanri (autonomous control)and improvement proposal activities

Technical training

Safety and health training

Sectoral engineering training

Training for
promoted
employees

Business English

Career training

Tutor training

Training for
employees
promoted to seniorstaff members• We will maintain the percentage of women among new recruits (career-track employees) at 40% or higher.
• We will proactively support employees’career development.
• We will increase the percentage of women among management-level employees (executives) five-fold comparedto the current level.

Work-life Balance Initiatives■ A variety of measures■ Small group activities
The Third All Topy Small Group Activity Presentation Convention was held in December 2018. In the presentations of
this fiscal year’s activities, a total of ten groups—two fromthe back-office section, two from the Shonan district, three
from the Mikawa district, and three from group companies—
competed for First Prize. Also, award-winning essays on autonomous control activities of the year were announced. Afterthe presentations, a reception was held that was attended byPresident Takamatsu and other executives. At the event, thegroups that gave presentations and the employees who werecommended for their essays were rewarded for their services
in a friendly atmosphere.

We have taken a variety of measures to improve the work-lifebalance of our employees.
(April 2018 to March 2019)
Measures taken• Operational improvement activities: Selected a pilot
worksite where all employees carried out operational improvement activities• Trial implementation of Anniversary Leave: Allows employees to take paid leave on an anniversary of their choosing(birthday, etc.)

Corporate Data

Rank-and-file employees

Training for
employees
promoted to chiefs

Overseas training

Training for new
management-level
employees

Period: One year
Destination: Overseas group company (FY2018, Topy America, Inc.)
Requirement for trainees: TOEIC® score of 600 or higher
Support for acquisition of public qualifications

New manager training【Outline of the program】

Subsidies for employees attending language schools

Manager training

Topy juku

41

Specialized training

Correspondence course for developing capabilities

Management coaching
schoolTraining fordeveloping
globallycompetitive
human
resources

Topy Industries stipulates that it shall“Respect the individual
character and personality of employees”in the Topy Industries
Group Corporate Code of Conduct and implements initiatives
for promoting the active participation of female employees asa measure for promoting diversity. As one of the initiatives,
we launched a diversity promotion project in FY2014. In thisproject, we identified new issues and determined measures
to be taken by FY2015, and enhanced related programs andintroduced measures related to career development support.
At present, we are carrying out an action plan targeting thefollowing, based on the Act on Promotion of Women’s Participation and Advancement in the Workplace, with the aim ofallowing female employees to participate actively and fulfill theirpotential. (Plan period: April 1, 2016 to March 31, 2021)

Sustainability■ Create an organizational
environment that permits
diverse human assets to work
actively in various ways

Management-level
employees■ Continue to produce futurebusiness leaders

Mandatory

Short-term program for studying
English abroad■ Strengthen employees’capability to respond toenvironmental changes■ Support employees intheir autonomous careerdevelopment

Support for
self-development

Off-JT■ Support for women’s empowerment

Business■ Create human resources(human assets) who continue
to develop

Diversity Initiatives

Growth Strategies■ Our philosophy and basic policy on human resources
development

In FY2017, we introduced Long-Term Overseas Training with theaim of developing young employees who can demonstrate theircapabilities in the different cultural environments of other countries. The employees who undergo this training are dispatchedto overseas group companies as trainees and receive practicalon-the-job training under the guidance of local managers in accordance with a training plan, thereby experiencing and learning
about overseas work. They also acquire the ability to communicate in different languages, along with intercultural skills. In June
2019, the trainees who
were dispatched to the
production facilities management functions divisionof Topy America, Inc. in
FY2018 reported on theirachievements after the
one-year training.

Value Creation■ Global HR development

Initiatives for employees■ Action plan based on the Act on Advancement of
Measures to Support Raising Next-Generation Children
We are implementing an action plan based on the Act on Advancement of Measures to Support Raising Next-Generation
Children with the aim of enabling all employees to fulfill theirpotential by balancing work and childcare.
(Plan period: July 1, 2015 to June 30, 2020)• Increase the rate of taking childcare leave to the standard
or a higher level during the plan period.
Male employees: At least one person shall take childcare
leave during the plan period.
Female employees: Achieve the rate of taking childcare
leave of 75% or higher.
• Encourage employees to take annual paid leave.

TOPY Report 201942

Sustainability

Sustainability

Social Responsibility

Relationships with Employees■ Communication Promotion Committee

Discussions with managers⑵⒀

Encouraging interpersonal
greeting⑶

Workplace culture survey⒁⑷

Topy Cafe sessions (generalemployee meetings)

Activity-Based Working (ABW)
implementation⑸

Manager meetings⒂

Self-led measures bycommittee-member
departments⑹

Operational improvement
activities⒃

Installation of engagementbookshelves⑺

Thanksgiving activities⑻

Women’
s meetings⒄

Promotion of 5S in theworkplace⑼

Inter-departmental mixers⒅

Deployment of IT tools to
support sales⑽

Department self-introduction
sessions⒆⑾

Anniversary Leave program
implementation

Re-examination of age
restrictions for bachelor
dormitories

Basic Policy on Corporate GovernanceTopy Industries pledges to enhance corporate value in the medium to long term by establishing a corporate governancesystem that is appropriate for the company from the standpoint of management soundness, transparency, and efficiency
in order to maintain and improve the trust of stakeholders. This comes from the group’s basic philosophy:“Win the trust
and respect of society through the continuance and development of the Topy Industries Group and the execution of one’s
duties as a public institution.”

Overview of Corporate Governance System

Employee Health & Safety■ Improvement of labor health and safety
Initiatives to Eliminate All Workplace Accidents
At Topy Industries, our primary corporate responsibility is toensure the safety and health of our workers. We therefore implement a variety of actions to achieve zero accidents. We also
conduct statistical surveys on labor accidents and report theresults through in-house newsletters and other media to raise
the safety and health awareness of each and every employee.
■Results of a Statistical Survey on Labor Accidents(Period: January to December 2018) (Topy Industries)

Manufacturing site

■ External Mixers
Topy Industries holds regular mixers with companies engaged
in the same kinds of activities. Attendees talk about the troubles and challenges in their work and come away with knowledge that will prove useful in designing new measures.

Total working hours

Number of
Frequency
accidents

Severity

Kanagawa

438,195

3

6.85

0.00

Ayase

921,936

4

4.34

0.00

Toyohashi

1,563,455

7

4.48

0.06

Toyokawa

894,048

0

0.00

0.00

Total

3,817,634

14

3.67

0.03

■ Health promotion
Mental Health Initiatives
With the aim of recognizing one’s own stress and preventing
mental health issues, we conduct stress checks for all employees and use the findings to improve workplace environments.
High-stress employees can receive follow-up care that includes
consultations with industrial physicians.

■ Compensation Advisory Committee
To ensure the fairness and transparency of director compensation, we have a Compensation Advisory Committee chairedby an outside director and comprising the President and twooutside directors. The committee serves as an advisory bodyto the Board of Directors.

Our management functions consist of a management decision-making function and a business execution function, andwe employ an executive officer system to vitalize and improvethe efficiency of company management.

■ Corporate Governance Structure
General Meeting of Shareholders
Appointment and dismissal

Appointment and dismissal

Audit & Supervisory Board(four members)
Close cooperation

ReportReportAppointment and dismissal
Audit and report（including two outside directors）

Nomination Advisory
Committee

Internal Audit Dept.

Whistleblower

Board of Directors(six members)

Audit（including two outside auditors）

Whistleblower

ReportCompensation Advisory Committee

Accounting Auditor
Close cooperation

Prior consultation

Executive
Management
Meeting

ReportRisk Management Committee

President
Topy Industries Group
Basic Corporate Ethics
Consultation Office
Topy Industries Group
Compliance Hotline

Head Office Organization
Division Organization
Affiliated Companies

TOPY Report 2019

To ensure the fairness and transparency of director nominations, we have a Nomination Advisory Committee chaired byan outside director and comprising the President and two outside directors. The committee serves as an advisory body to
the Board of Directors.

■ Business Execution Structure

Close Internal Audit
cooperation

43■ Nomination Advisory Committee

Topy Industries has an Audit & Supervisory Board, while theBoard of Directors comprises executive directors well-versed in
the Group’s business and independent outside directors. The
Board of Directors makes decisions on important managerial
matters and oversees company management, while the Audit& Supervisory Board, which has a legally stronger right to audit, oversees the company’s management. Through this system, we maintain and strengthen the soundness and efficiencyof the company’s management and improve corporate value.

コCorporate
ーポレートData
デ ータ

Meetings

We will work on strengthening and improving corporate
governance to establish a company that will earn the trust of all
stakeholders.

ト ピーのサSustainability
ス テ ナ ビ リ ティ

Under this program third-year employees will meet with theirsenior colleagues and receive help with solving the problems
they face and achieving professional growth. Activities conducted this year led to a greater retention rate among program
participants and improved communication skills.

⑿

Corporate culture improvement
workashop for managers

トBusiness
ピ ーのビ ジネス

■ Topy Mentoring Program (TMP)⑴ Mentor program

トGrowth
ピーの成長戦略
Strategies

With the goal of nurturing and enriching the human resources
who support technological innovation and further growth forthe company around the world, Topy Industries established the
Job Satisfaction Improvement Committee. Comprising mostly
younger employees, the committee was active throughout
the Medium-Term Management Plan, also known as Growth& Change 2018. The committee conducted the company’sfirst employee satisfaction survey, then, based on the survey
results, discussed and carried out more than 20 measures for
improving engagement.
In order to ensure the continuation of the achievements
made through the engagement improvement activities and tosolve problems, we renamed the committee the Communication Promotion Committee and began moving to the nextstage in fiscal 2019.
By carrying out initiatives tailored to areas of communication
not covered by current HR activities, the committee will improve employee satisfaction while conducting activities that willlead to better systems for developing human resources.

■ Measures Taken up to FY2018

トValueピーの
価値創造
Creation

Efforts to heighten engagement

Corporate GovernanceAppointment
Dismissal
Supervision

Each Permanent Committee
ReportReportPolicy, planning, etc. of business execution

Executive Director
Executive Officer

Employee

TOPY Report 201944

Sustainability
Corporate Governance■ Independence of Outside Officers (Outside Directors andOutside Audit & Supervisory Board Members)

Internal Control and
Risk Management System

Compensation for Directors and Audit &Supervisory Board Members■ Internal Control Systems in General■ Execution of duties by Directors

In accordance with its basic principle of improving company
performance and value, the company uses compensation
standards and a compensation system appropriate to individual employees’job responsibilities. The company also uses survey data compiled by outside experts to improve the objectivityof compensation standards.

To ensure the effectiveness of the internal control systems ofTopy Industries and its Group companies, and to make continuous improvements to these systems, the company’s Internal
Audit Department monitors Topy Industries Group companies
for compliance with internal control rules established by theCompanies Act and Financial Instruments and Exchange Act
based on the company’s annual auditing policies and plans.

The Board of Directors resolves matters required by laws andregulations or the articles of incorporation, as well as important
issues of the company as stipulated in the Board of Directors
Regulations. Moreover, prior deliberations of matters to beresolved by the Board of Directors are held at the Executive
Management Meeting, which comprises the Executive Directors and others. Prior explanations of the agenda for Board of
Directors Meetings are provided to Outside Directors who do
not attend the Executive Management Meeting. In addition,
the company endeavors to ensure efficient deliberations by
the Board of Directors and rationality in the course of its decision-making by means such as establishing Bylaws concerning Preparation of Agenda Documents for Board of Directors
Meetings.

■ Procedure for Determining Compensation
The Compensation Committee deliberates on the level of Board
member compensation, which is determined by considering thecompensation policy, the business performance of the company,
and other factors. Based on the results of the deliberation, theamount of compensation for each director is determined by the
Board of Directors, and that of each member of the Audit & Supervisory Board is determined through deliberation by all members of the Audit & Supervisory Board within the total amountsof compensation for which resolutions were passed in advanceat the General Meeting of Shareholders.

■ Incentive Compensation System and Compensation Composition
Compensation types

Performance indicators

・The amount of this compensation is linked
to the level of achievement of the Medium-Term Management Plan.

・Level of achievement of performance indicators set
in the Medium-Term Management Plan, including net
sales, operating profit, profit attributable to owners ofparent, operating profit on sales, operating margin,
ROE, ROA, and debt equity ratio.

・The standard amount of this compensation is 5% of the basic compensation,
varying from 0% to 10%.
・This is linked to company performanceand individual performance in the previous fiscal year.
・The standard amount of this compensation is 30% of the basic compensation,
varying from 0% to 75%. The portion
based on the company’s business performance ranges from 0% to 65%, whilethat based on individual performance
ranges from 0% to 10%.

・One is the result of quantitative evaluation, which is
calculated based on return on equity (ROE) as the key
indicator, and the level of achievement of performanceindicators such as return on assets (ROA), operating
profit on sales, and debt equity ratio. The other is theresult of qualitative evaluation, which is determined inconsideration of management activities and other situations.

Stocks, cash

■ Risk management system
Cash・Level of achievement of individual missions■ Compensation for Outside Directors and Audit &Supervisory Board Members
Compensation for outside directors and members of the Audit& Supervisory Board consists of only a fixed basic compensation. This is in consideration of their independent position,

Position45

Total amount ofcompensations（million yen）

which is unaffected by the company’s business performance.

Amount of compensation by type（million yen）
Basic
compensation

Number of
subject officers

Stock-based
compensation

Bonus

Directors（excluding outside directors）

244

234

－

10

7

Members of the Audit & Supervisory Board（excluding outside members）

40

40

－

－

3

Outside officers

37

37

－

－

4

TOPY Report 2019

Under the leadership of the Risk Management Committee ofthe company, employees in each department of the company
and group companies formulate annual activity plans for risk
management and engage in risk management improvement
activities. When an issue related to risk management occurs or
is likely to occur in the Topy Industries Group, it is reported toorganizations including the Risk Management Committee, with
the necessary instructions provided through the risk management system. For responding to major natural disasters andother emergencies, we formulate and regularly review business
continuity plans. We also work to improve the earthquake resistance of company buildings and production facilities whileregularly conducting drills and other activities to cope withemergencies.

■ Business management of the group companies
In accordance with the Group Company Management Regulations, the division of the company supervising the groupcompanies receives reports therefrom regarding their business
policies, plans, results and other matters as necessary, while
important matters are resolved at Executive Management
Meetings or Board of Directors Meetings. In addition, the company promotes the autonomous management of each groupcompany and conducts management soundness evaluations
to ascertain business results and risk management status,
among other aspects, of each group company for every fiscal
year. Based on the results of such evaluations, the division of
the company supervising the group companies provides instructions and support to the group companies.

■ Audits by the Audit & Supervisory Board
Through Board of Directors Meeting attendance, as well as by
Executive Management Meeting and other important meeting
attendance by full-time members of the Audit & Supervisory
Board, Audit & Supervisory Board members receive reportson the activities of such organizations as the Internal Audit Department and Risk Management Committee and other mattersthat have a significant influence on the Topy Industries Group.
In addition, the Representative Director and Audit & Supervisory Board members hold regular meetings to exchange opinions. Information sharing sessions are also conducted among
outside directors and Audit & Supervisory Board members.
When an issue related to risk management occurs or is likely tooccur in the Topy Industries Group, it is also reported to Audit& Supervisory Board members in accordance with the Group
Risk Management Regulations. In addition, the company has
developed a structure in which whistle-blowing is reported to
Audit & Supervisory Board members in accordance with theRules Concerning the Topy Industries Group Basic Corporative
Ethics Consultation Office and the Topy Industries Group Compliance Hotline.

TOPY Report 2019

Corporate Data

Performance-based
compensation(short-term incentives)

Payment model

We have formulated the Group Basic Philosophy and theGroup Code of Conduct and ensure that all the officers andemployees of the Topy Industries Group are familiar with themthrough such means as our websites, in-house newsletter, andGroup Compliance Guidebook. Moreover, under the leadershipof the Risk Management Committee of the company, employees in each department of the company and group companies
formulate annual activity plans to ensure full compliance, engage in compliance improvement activities, and share relevant
information. In addition, company divisions that include those
supervising compliance provide a range of compliance education to employees at each level of the Topy Industries Group.
Regarding the whistle-blowing system, the Rules concerning
the Topy Industries Group Basic Corporate Ethics Consultation
Office and the Topy Industries Group Compliance Hotline stipulate that reports and consultations from employees are heldin strict confidence and will not become the basis for any unfair
treatment. We also provide outside counsel as recipients ofsuch reports and consultations.

Sustainability

Performance-based stockcompensation(medium to long term
incentives)

Details of compensation■ Compliance System

Business■ Basic Policies

Growth Strategies

In accordance with independence standards established byfinancial instruments exchanges in Japan, the company determines the independence of its outside officers (outside directors and outside Audit & Supervisory Board members) basedon their interests in the company, which include personal relationships, capital ties, and business relationships with the company. The company deems all of its officers to be independentand has notified financial instruments exchanges of such.

Value Creation

Outside Officers

46

Chapter 5

Sustainability
Corporate Governance■ Initiatives to vitalize general meetings of shareholders① Enrichment and early dispatch of notice to convene general meetings of shareholders② Use of the Internet for notices to convene general meetings of shareholders③ Exercise of voting rights via the Internet

1921

Miya Steelworks (predecessor of Toto Steel Mfg., Co., Ltd.)was founded

1988

Concluded a technical assistance agreement with PT. Pakoakuina (Indonesia)

Number ofparticipants

1922

Miya Steelworks succeeded in hot-rolling of steel sashes

1989

A plant for undercarriage components for construction equipment commenced operation at Toyohashi Works

November 20, 2018

2Q financial results briefing

24 members

1926

Tokyo Shearing Co., Ltd. (predecessor of Toto Steel Mfg.,
Co., Ltd.) was founded1990

Akemi Plant of Toyokawa Factory commenced operation

May 24, 2019

Full-year financial results briefing

30 members

1930

Teikoku Hatsujo Seisakusho (predecessor of Japan Motor
Wheel Co., Ltd.) commenced production of prototype steel
wheels for automobiles

1991

Kimi to Boku Hall was completed at Toyohashi Works

1992

Kurate Plant of Toyokawa Factory commenced operation

1934

Tokyo Sharin Seisakusho Co., Ltd. (predecessor of Japan
Motor Wheel Co., Ltd.) was founded1995

A mill for deformed concrete bars commenced operation at
Toyohashi Works

1941

Tokyo Sharin Seisakusho and Abe Tekkosho Co., Ltd.
merged to form Japan Motor Wheel Co., Ltd.

1998

Obtained ISO 9001 certification at all production sites

1943

Miya Steelworks and Tokyo Shearing Co., Ltd. merged toform Toto Steel Mfg., Co., Ltd.

1999

Topy International, U.C.A. Inc. (now Topy America, Inc.) was
foundedISO 14001 certification was obtained for all production sites

1955

Toto Zoki Co., Ltd. was founded

2000

1956

Toto Tekko Co., Ltd. was founded

Akemi Electric Power Ltd., which engages in the power supply business, commenced operation

1958

Toyohashi Steel Mill Plant of Toto Steel Mfg., Co., Ltd. (current
Toyohashi Works of Topy Industries, Ltd.) was established2003

Took a stake in Fujian Yuan Shing Topy Ltd. (now Fujian Topy
Autoparts Co., Ltd.)

2004

Hamura Plant of Ayase Factory commenced operation

1961

Chigasaki Seisakusho of Toto Zoki Co., Ltd. (now Kanagawa
Factory of Topy Industries, Ltd.) was established
Toyokawa Plant of Japan Motor Wheel Co., Ltd. (nowToyokawa Factory of Topy Industries, Ltd.) was established2007

Topy America, Inc. was founded (merger of Topy International, Inc., Topy Corporation, and Topy International U.C.A. Inc.)
Head Office moved to Osaki, Shinagawa-ku, Tokyo

1964

Ayase Plant of Japan Motor Wheel Co., Ltd. (current Ayase
Factory of Topy Industries, Ltd.) was establishedJapan Motor Wheel Co., Ltd., Toto Steel Mfg. Co., Ltd., Toto
Zoki Co., Ltd. and Toto Tekko Co., Ltd. merged to form Topy
Industries, Ltd.

2008

Science Division was established
Concluded an agreement with Nippon Steel Corporation tostrengthen general business cooperation

2011

Topy Undercarriage (China) Co., Ltd. was founded

2013

PT. Topy Palingda Manufacturing Indonesia was founded
PT. Topy Undercarriage Indonesia was founded
Topy MW Manufacturing Mexico S.A. de C.V. was founded2014

PT. Topy Undercarriage Indonesia commenced operation
The new steel making plant commenced commercial operation at Toyohashi Works2015

Topy Fasteners Mexico S.A. de C.V. was founded2016

The business and capital alliance with MW Italia S.R.L. wasstrengthened

2017

WIL Car Wheels Ltd., a joint venture with Wheels India Limited, was established (India)

2018

Ring Techs Co., Ltd. was made into a wholly-owned subsidiary
Asahi Tec Corporation was made into a wholly-owned subsidiary④ Preparation of notices to convene general meetings ofshareholders in English (summary)■ Financial results briefings
We believe that the opportunity for our top executives to directly explain our management plan and financial results helps
us earn the trust of our investors. Such sessions are held after
financial results are disclosed at the end of the second quarterand at the end of the fiscal year for analysts and institutional
investors. The president himself presents our financial results
as well as our medium to long term consolidated management
plans. This management plan session can be watched via
streaming from the IR Library on our website for shareholders
and investors.

47

TOPY Report 20191969

Topy International, Inc. (current Topy America, Inc.) was
founded1972

Technology Research Center (current R&D center) was
opened at Toyohashi Works

1977

Sales of synthetic mica started

1980

Concluded a technical assistance agreement with PT. Inkoasku (Indonesia)

1982

Concluded a technical assistance agreement with PT. Palingda Nasional (Indonesia)
Developed tubeless tire wheels for heavy- and medium-duty
trucks and buses at Ayase Factory
Super-Giant Off-the-Road Rim (SGOR®) vehicle wheels formining dump trucks were developed

1985

Topy Corporation (current Topy America, Inc.) was founded1987

Succeeded in the practical application of high-quality synthetic mica for cosmetics

TOPY Report 2019

Corporate Data

Content

Sustainability

Date

Business

We are taking the following initiatives to vitalize general meetings of shareholders as a place for communication among
the company, shareholders, and investors and to facilitate theseamless exercising of voting rights:■ Financial results briefings held in FY2018

Growth Strategies

Article 2 (For the benefit of society) of the Topy Industries
Group Corporate Code of Conduct stipulates that the Groupwill“Communicate widely with society as well as shareholders
and proactively disclose corporate information fairly and appropriately. Cooperate with local communities and be philanthropically active as a good corporate citizen.”From the standpointof securing management transparency we are endeavoring todisclose corporate information in a fair and equitable manner inaccordance with the related laws and regulations such as the
Financial Instruments and Exchange Act.

Our History
Value Creation■ Adequate information disclosure

Corporate Data

48

Corporate DataManagement Team

1979
2011
2012
2014
2016

2017

Director and Executive Vice President
1979
2007
2011
2013
2015

2018

2019

Joined Topy Industries, Ltd.
Operating Officer, Deputy General Manager of Wheel Div.
Director, General Manager of Wheel Div.
Managing Executive Officer, Automotive and Machinery Components Business, General Manager of Wheel Div.
Managing Executive Officer, General Manager of Corporate Planning Dept.
Director of Topy Undercarriage (China) Co., Ltd., Senior Managing
Operating Officer of Corporate Planning Dept. and Finance Dept.
Senior Managing Director of Corporate Planning Dept. and Finance
Dept.
Senior Managing Director in charge of Corporate Planning Dept.,
Finance Dept., and Sales Administration Dept.
Representative Director and President of ATC Holdings Co., Ltd. (topresent),
Director of Asahi Tec Corporation (to present)
Director and Executive Vice President (to present)

Senior Managing Director

2018

2019

Senior Managing Director

2012
2015
2017
2018
2019

Hiroyuki Kinoshita

Joined Nippon Steel Corporation
Operating Officer, Technical Coordination (Manager, Special Matters)of Topy Industries, Ltd.
Operating Officer, Deputy General Manager of Undercarriage
Components Div. and General Manager of Kanagawa Factory,
Undercarriage Components Div.
Managing Executive Officer, General Manager of Undercarriage
Components Div.
Senior Executive Officer, General Manager of Undercarriage Components Div.
Senior Managing Director in charge of Engineering Administration
Dept., Internet of Things Promotion Dept., and Safety at Topy Industries, Ltd.
Senior Managing Director (to present)

1991
1999
2007
2015
2017

Audit & Supervisory Board Member
1982
2007
2010
2014
2015

Joined Topy Industries, Ltd.
Manager of Educational Issues at Personnel Dept.
Senior Manager of General Affairs Dept. (PR, IR)
Deputy General Manager of General Affairs Dept.
Audit & Supervisory Board Member (to present)

Audit & Supervisory Board Member
1982
2015
2016
2017
2018

2006
2009
2012
2016

Koichi Sakamoto

Joined Topy Industries, Ltd.
Operating Officer of Topy Industries, Ltd., Director and CEO of
Qingdao Topy Machinery Co., Ltd., and Director and CEO of Topy
Undercarriage (China) Co., Ltd.
Operating Officer of Topy Industries, Ltd. and Director and CEO of
Topy Undercarriage (China) Co., Ltd.
Councilor of Topy Industries, Ltd. and Director and CEO of Topy
Undercarriage (China) Co., Ltd.
Councilor to General Affairs Dept. of Topy Industries, Ltd., Audit &Supervisory Board Member (to present)

Audit & Supervisory Board Member
1977
2005

Yukihiro Ogawa

Masakazu Kawabata

Joined Fuji Bank Limited
Executive Officer, Branch Manager of Shinjuku Branch of Mizuho
Bank Ltd.
Executive Managing Officer of Mizuho Bank Ltd.
Representative Director, Vice President of Mizuho Research Institute Ltd.
Representative Director and President of Mizuho Capital Co., Ltd.
Audit & Supervisory Board Member of Topy Industries, Ltd.
(to present)
Outside Corporate Auditor of Komori Corporation (to present)
Outside Director of Fuyo Auto Lease Co., Ltd. (to present)

Position

Name

Title or responsibilities

Managing
Executive Officer

Ichiro Takeuchi

General Manager of Wheel Div., in charge of Automotive and Industrial Machinery
Components Business

Managing
Executive Officer

Masayoshi Takezawa

General Manager of Engineering Administration Dept.

Managing
Executive Officer

Katsuyoshi Daido

General Manager of Internal Audit Dept.

Managing
Executive Officer

Hiroji Kobayashi

General Manager of Corporate Planning Dept.

Operating Officer

Satoshi Fukura

General Manager of Science Div.

Operating Officer

Tsuyoshi Nakamura

General Manager of Steel Div., in charge of Steel Business

Operating Officer

Takanori Kawano

General Manager of Finance Dept.

Operating Officer

Kentaro Oba

Deputy General Manager of Wheel Div.

Operating Officer

Shuichi Tachibana

General Manager of General Affairs Dept.

Operating Officer

Masatoshi Takahashi

Director and Vice President of Asahi Tec Corporation

Operating Officer

Masahiro Abe

Deputy General Manager of Wheel Div.

Operating Officer

Katsuyoshi Tanaka

General Manager of Undercarriage Components Div., in charge of Automotive andIndustrial Machinery Components Business

Operating Officer

Tetsuya Sakai

General Manager of Personnel Dept.

Operating Officer

Koji Nanayama

Deputy General Manager of Wheel Div.

Operating Officer

Hideo Katsuyama

General Manager of Marketing Administration & Planning Dept.

Operating Officer

Makoto Shimura

General Manager of Toyokawa Factory, Wheel Div.

Operating Officer

Shuichi Taguchi

General Manager of Administration & Procurement Dept., Wheel Div.

Corporate Data

1981
2011

Satoshi Kumazawa

Joined Orient Watch Co., Ltd.
Joined Topy Industries, Ltd.
Operating Officer, General Manager of General Affairs Dept.
Operating Officer, General Manager of Personnel Dept.
Managing Operating Officer, General Manager of Personnel Dept.
Managing Operating Officer, General Manager of Personnel Dept.
Senior Managing Operating Officer, General Manager of Personnel
Dept.
Senior Managing Director in charge of General Affairs Dept. and
Personnel Dept.
Supervisor, Fujian Topy Autoparts Co., Ltd. (to present)
Senior Managing Director (to present)

Registered as lawyer (to present)
Joined Ishii Law Office (to present)
Partner of Ishii Law Office (to present)
Instructor, the Training and Research Institute for Court Officials,
Supreme Court of Japan
Visiting Professor, the University of Tokyo Graduate Schools for
Law and Politics
Chairman, Research Committee on the Judicial System, Japan
Federation of Bar Associations
Director of Topy Industries, Ltd. (to present)
Outside Auditor of JSR Corporation (to present)

Sustainability

1980
1989
2010
2013
2015
2016
2017

Sumio Moriwaki

1981

Business

2017

Norio Saito

Director

Growth Strategies

2016
2017

Nobuhiko Takamatsu

Joined Nippon Steel Corporation
Executive Officer General Manager, Head of Division, Ironmaking
Technology Division, Nippon Steel Corporation
Advisor, Nippon Steel Corporation; Executive Officer in charge oftechnology/quality, Usiminas Siderúrgicas de Minas Gerais S.A.
Executive Vice President in charge of business planning, Usiminas
Siderúrgicas de Minas Gerais S.A.
Managing Executive Officer and Vice Head of Global Business
Development Sector, Nippon Steel & Sumitomo Metal Corporation
Director at Usiminas Siderúrgicas de Minas Gerais S.A.
Senior Executive Officer, Appointed as Assistant to the Presidentof Topy Industries, Ltd.; Advisor, Nippon Steel & Sumitomo Metal
Corporation
Representative Director and President (to present)

Value Creation

Representative Director
and President

As of June 25, 2019
Director

Tsuyoshi Inoue

Audit & Supervisory Board Member

1976
2006
2008
2010
2013
2014

Joined Development Bank of Japan
Supervisor of Development Bank of Japan
Resident Auditor of Development Bank of Japan
Managing Director of Japan Nuclear Fuel Limited
Director and Executive Officer of Japan Nuclear Fuel Limited
Representative Director and President of Value Management
Institute, Inc.
Outside Audit & Supervisory Board Member of Mitsubishi Paper
Mills Limited
Auditor of Fuji Oil Co., Ltd. (to present)
Director of Topy Industries, Ltd. (to present)
Representative Director and President of Japan Economic Research Institute Inc.

1978
2005

2015
2016

2008
2012
2016

Kazuo Shouyu

Joined Meiji Yasuda Life Insurance Company
General Manager of Multi-life Product Development Promotion
Dept. of Meiji Yasuda Life Insurance Company
General Manager of Medical Department of Meiji Yasuda Life
Insurance Company
Statutory Auditor of Meiji Yasuda System Technology Company
Audit & Supervisory Board Member of Topy Industries, Ltd.
(to present)
Managing Director of Meiji Yasuda Cultural Foundation (to present)

Note:
Director Tsuyoshi Inoue and Sumio Moriwaki are outside directors.
Audit & Supervisory Board Member Masakazu Kawabata and Kazuo Shouyu areoutside audit & supervisory board members.

49

TOPY Report 2019

TOPY Report 201950

Corporate Data

Consolidated Financial
Performance for
the Past 11 Years
Value Creation(Unaudited; for reference only)
Fiscal year

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Operating Results (Fiscal year) (Million yen)
221,413240,534

226,912234,682

237,677

215,872

208,237

230,462

286,227

Operating profit

6,686

355

7,006

10,554

6,990

5,308

6,422

10,000

7,180

7,997

7,505

Ordinary profit

6,010

626

5,241

7,304

6,234

4,485

6,037

8,806

6,116

8,034

9,357

Profit (loss) before income taxes

5,225(1,641)

4,765

6,118

5,842

4,249

4,476

4,681

10,897

7,933

10,345

Profit (loss) attributable to ownersof parent

2,384(1,032)

2,072

3,918

3,409

1,914

2,360

1,700

7,191

5,500

7,114

Capital expenditure

12,401

7,659

7,170

8,982

20,47725,45820,374

8,815

9,874

12,132

25,100Depreciation and amortization

11,707

11,195

10,057

9,310

8,957

10,086

10,315

11,321

10,631

10,59911,110Research and development costs

1,649

1,288

1,245

1,271

1,212

1,519

1,202

1,059

1,137

1,131

1,096

Total assets

202,995

201,138

203,956

212,828

208,781

232,714

252,456

231,583

223,050

248,102284,198

Shareholders’equity

80,28681,08779,50082,38989,522

94,363

106,187

98,893103,951

108,959

111,304

Net assets

80,942

81,88480,16583,096

91,25896,219107,941

99,973

104,853

109,859

112,362Interest-bearing debt

63,90662,35861,75958,09153,53462,45377,51670,07055,831

61,096

79,676

Cash flows from operating activities

21,547

12,0106,236

16,01016,7707,251

19,44019,346

10,13010,78011,725

Cash flows from investing activities(15,908)(7,507)(3,681)(7,703)(14,770)(17,478)(29,141)(7,529)(1,016)(5,861)(20,835)

Cash flows from financing activities(287)(2,236)(1,952)(4,983)(4,997)

7,538

13,157(8,391)(16,861)

1,834

15,936103.88(42.96)86.37

165.20143.76

80.76

99.65

71.80

303.90234.25302.85

50

20

40

40

40

20

40

60

80

80

90

Operating profit on sales

2.3

0.2

3.2

4.4

3.1

2.3

2.7

4.6

3.4

3.5

2.6

Return on equity

2.9

(1.3)

2.6

4.8

4.0

2.1

2.4

1.7

7.1

5.2

6.5

Equity ratio

39.6

40.3

39.0

38.7

42.9

40.5

42.1

42.7

46.6

43.9

39.2

4,125
［471］

4,242
［422］

4,151
［432］

4,135
［428］

4,374
［491］

4,515
［538］

4,596
[573]

4,408
[597]

4,568
[587]

5,034
[581]

6,241
[869]

Business

196,848

Growth Strategies

290,333

Net sales

Financial Position (End of fiscal year) (Million yen)

Sustainability

Cash Flows (Fiscal year) (Million yen)

Per Share Information (Yen)Net profit (loss) per share

Corporate Data

Dividends per share

Financial Indices (%)

Number of employees at period end[Average number of temporary employees not included in the above]* A one-for-10 reverse stock split of common stock went into effect on October 1, 2016. Data per share is thus calculated on the assumption that the reverse stock split was executed at the beginning of fiscal 2008.

Detailed financial data are available on the following page of our official website.
http://www.topy.co.jp/ja/stock/library.html

51

TOPY Report 2019

TOPY Report 201952

Corporate Data

Corporate Data

Major Subsidiaries& Affiliates

IR Information

Head office location

Capital(millions of yen)

Business segment

Shinagawa-ku, Tokyo

480

Topy Marine Transport, Ltd.

225

Topy-Rec, Ltd.

Toyohashi-shi, Aichi Pref.
Matsumoto-shi, Nagano
Pref.
Koto-ku, Tokyo

Kyushu Wheel Kogyo, Ltd.

Miyako-gun, Fukuoka Pref.

100

Steel, Automotive andIndustrial Machinery Components, Other
Steel
Automotive andIndustrial Machinery Components
OthersAutomotive andIndustrial Machinery Components

Tojitsu Co., Ltd.

Toyohashi-shi, Aichi Pref.

80

Steel

NE-Tojitsu, Ltd.

Urayasu-shi, Chiba Pref.

34

Steel

Topy Fasteners, Ltd.

310
300

Automotive andIndustrial Machinery Components

Akemi Recycling Center, Ltd.

Toyohashi-shi, Aichi Pref.

200

Steel

Sanwa Buhin Co., Ltd.

Bando-shi, Ibaraki Pref.

200

Akemi Electric Power, Ltd.

Toyohashi-shi, Aichi Pref.
Kurashiki-shi, Okayama
Pref.
Kurashiki-shi, Okayama
Pref.
Kikugawa-shi, Shizuoka
Pref.
Kikugawa-shi, Shizuoka
Pref.

205

Automotive andIndustrial Machinery Components
Power Generation
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components
Automotive andIndustrial Machinery Components

Ring Techs Co., Ltd.
Seibu Wheels Co., Ltd.
ATC Holdings Co., Ltd.
Asahi Tec Corporation

100
10
100
100

Topy America, Inc.

Kentucky, U.S.A.

600 U.S. dollars

Topy Precision Mfg., Inc.

Illinois, U.S.A.

50,000 U.S. dollars

Topy Fasteners (Thailand), Ltd.

Chonburi, Thailand

Fujian Topy Autoparts Co., Ltd.

Fujian, China

Topy Undercarriage (China) Co., Ltd.

Qingdao, China

Topy Fasteners Vietnam Co., Ltd.
PT. Topy Palingda Manufacturing Indonesia
PT. Topy Undercarriage Indonesia
Topy MW Manufacturing Mexico S.A. de C.V.
Topy Fasteners Mexico, S.A. de C.V.
Ring-Techs Guangzhou Co., Ltd.
Asahi Tec Aluminium (Thailand) Co., Ltd.

Yen My District, Hung Yen
Province, Vietnam
Karawang Regency, West
Java, Indonesia
Bekasi Regency, West
Java, Indonesia
Silao City, State of Guanajuato, Mexico
San Luis Potosi City, Stateof San Luis Potosi, Mexico
Guangzhou City, Guangdong Province, China
Khlong Tamru, Chonburi,
Thailand50 million baht
194 million renminbi
606 million renminbi
6,240,000 U.S. dollars
710.5 billion rupiah
2,850,000 U.S. dollars
867 million pesos
166 million pesos
188 million renminbi
14.80 million baht

Asahi Tec North America, Inc.

Troy, Michigan, U.S.A.

90,000 U.S. dollars

Guangzhou Asahi Dongling Research & Development Co., Ltd.

Guangzhou City, Guangdong Province, China

11,900,000 renminbi(Equity-method affiliate) Hokuetsu Metal Co., Ltd.

Nagaoka-shi, Niigata Pref.

Guangzhou Wheelhorse Asahi Aluminium Co., Ltd.
Guangzhou Dicastal Asahi Aluminium Co., Ltd.
(Other affiliates) Nippon Steel & Sumitomo Metal Corporation

Guangzhou City, Guangdong Province, China
Guangzhou City, Guangdong Province, China
Chiyoda-ku, Tokyo

1,969 Steeland
216 million renminbi Automotive
Industrial Machinery Components
Automotiveand40 million renminbi Industrial Machinery
Components
and sales of steel products
419,524 Manufactureand engineering

100

100
（100）
100
（100）
100
（100）
100
（30）

24,077,510

Number of shareholders

10,920■ Top 10 major shareholders
Name

Number of shares held

Shareholding ratio (%)

Nippon Steel & Sumitomo Metal Corporation

4,818,264

20.46

Topy Fund Business Association

1,065,410

4.52

Meiji Yasuda Life Insurance Company

975,134

4.14

100

The Master Trust Bank of Japan, Ltd. (trust account)

834,000

3.54

100

Mizuho Bank, Ltd.

787,802

3.34

100

Japan Trustee Services Bank, Ltd. (trust account)

687,127

2.92

Sompo Japan Nipponkoa Insurance Inc.

574,600

2.44

Employee Shareholding Association of Topy Industries, Ltd.

550,243

2.34

DFA Intl Small Cap Value Portfolio

537,400

2.28

Government of Norway

494,200

2.10

100
（100）
100
100
（100）
100
100
（100）
90
（55）

Notes:
1. Topy Industries, Ltd. owns 525,496 treasury shares but is excluded from the major shareholders listed above.
2. The shareholding ratios were calculated by excluding treasury shares.
3. Nippon Steel & Sumitomo Metal Corporation changed its trade name to Nippon Steel Corporation on April 1, 2019.
4. Topy Fund Business Association is the name of the shareholding association of Topy Industries, Ltd., its affiliates, and its business partners.

100
100
100
（80）

■ Breakdown of shareholders by type90

Financial
institutions
33.5%

Individuals
and others
22.84%

100
（3）
95
100
（100）
90
（90）
100
（100）
100
（100）
51
（51）
35.6
（1.4）
49
（49）
25
(25)
0.1
(Owned by)
20.8
(0.2)

6. The values in parentheses in the“Voting rights held or owned by”column represent indirect holding percentages or percentages of voting rights indirectly owned by the company, which are each included in the value above.

TOPY Report 2019

Number of outstanding shares

100

Notes:
1. The respective business segments are listed in the“Business segment”column (excluding other affiliated companies).
2. Topy America, Inc. and Topy Precision Mfg., Inc. have paid premiums of U.S. $62,999,400 and U.S. $4,950,000, respectively, aside from the capital mentioned above, totaling capital of U.S.
$63,000,000 and U.S. $5,000,000, respectively.
3. Topy Enterprises, Ltd., Topy America, Inc., Fujian Topy Autoparts Co., Ltd., Topy Undercarriage (China) Co., Ltd., PT. Topy Palingda Manufacturing Indonesia, Topy MW Manufacturing Mexico S.A. de
C.V., Ring-Techs Guangzhou Co., Ltd., and Asahi Tec Aluminium (Thailand) Co., Ltd. are specified subsidiaries.
4. Hokuetsu Metal Co., Ltd. and Nippon Steel & Sumitomo Metal Corporation issue official financial statements separately. Nippon Steel & Sumitomo Metal Corporation changed its trade name to Nippon Steel Corporation on April 1, 2019.
5. The sales ratio of Topy Enterprises, Ltd. as a proportion of the consolidated sales of the Topy Industries Group exceeds 10% (excluding internal sales among consolidated Topy Industries Group companies).
Major financial information（1）
Net sales JPY¥115,398 million（2）
Operating profit JPY¥1,358 million（3）
Net profit JPY¥3,032 million（4）
Net assets JPY¥9,727 million（5）
Total assets JPY¥43,152 million

53

88,300,000

Securities
companies
0.99%

Foreigninvestors
16.49%

Corporate Data

30

100

Number of authorized shares

Sustainability

Hachioji-shi, Tokyo

100

First Section of the Tokyo Stock Exchange & First Section of the Nagoya Stock Exchange(Securities code 7231)

Business

Autopia, Ltd.

100

Stock exchange listings

Growth Strategies(Consolidated Subsidiaries) Topy Enterprises, Ltd.

Voting rights
held orowned by (%)

Value Creation

Company name

Other domestic
corporations
26.53%
Treasury shares are included in “Individuals and others.”

Fiscal year end

March 31

Ordinary general meeting of shareholders

June

Record date

March 31 (ordinary general meeting of shareholders, year-end dividend)
September 30 (interim dividend)

Share unit number

100

Shareholder registry administrator(special account management institution)

Sumitomo Mitsui Trust Bank, Limited
1-4-1 Marunouchi, Chiyoda-ku, Tokyo

Contact for inquiries

Stock Transfer Agency Business Planning Dept.
Sumitomo Mitsui Trust Bank, Limited
2-8-4 Izumi, Suginami-ku, Tokyo 168-0063
Phone: 0120-782-031 (toll free)

As of March 31, 2019

TOPY Report 201954