Consolidated Basis Results of the Third Quarter for Fiscal 2022
(April 1, 2022 – December 31, 2022)
Registered Company name
Code number:

TOPY INDUSTRIES, LIMITED

February 7, 2023
Stock listing: Tokyo, Nagoya stock exchanges

7231

URL: http://www.topy.co.jp/

Representative:
Contact:

Nobuhiko Takamatsu, Representative Director, President and CEO
Tetsuya Sakai, Operating Officer, General Manager, General Affairs Department

Telephone: 03-3493-0777 / (Overseas) 81-3-3493-0777
Scheduled date for submission of securities reportFebruary 10, 2023
Scheduled date for dividend payment
Preparation of supplementary explanatory materials:

No

Holding of quarterly financial results meeting:No(Figures of less than ¥1 million have been omitted)
1. Consolidated Financial and Operating Results of the Third Quarter for Fiscal 2022 (April 1, 2022 - December 31, 2022)(1) Consolidated Operating Results (Cumulative)(Percentage figures are changes from the same period of the previous fiscal year)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%

Million yen%

Million yen%

Million yen%

248,801
196,974

26.3
22.3

5,355
(849)

-

6,255
(672)

-

4,666
(1,490)-Third Quarter of Fiscal 2022
Third Quarter of Fiscal 2021
Note: Comprehensive income

Third Quarter of Fiscal 2022
Third Quarter of Fiscal 2021

(246.8%)－%

Profit per share after full
dilution

Profit per share

Third Quarter of Fiscal 2022
Third Quarter of Fiscal 2021

10,102 Million yen
2,912 Million yen

Yen

Yen

204.02(63.96)-(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

Third Quarter of Fiscal 2022
Fiscal 2021

301,782
282,195

122,634
113,703

40.2
39.9

5,317.21
4,902.25(For reference) Shareholders’ equity:

Third Quarter of Fiscal 2022

121,369 Million yen

Fiscal 2021

112,657 Million yen

2. Dividends
1Q-endDividends per share
3Q-endEnd of FY

2Q-endFull fiscal year

Yen

Yen

Yen

Yen

Yen

-

0.00
20.00

-

20.00

20.00

50.00

70.00

Fiscal 2021
Fiscal 2022
Fiscal 2022 (Forecasts)

Note: Whether changes to the latest dividend forecasts have been made: No
3. Consolidated Financial Forecasts for Fiscal 2022 (April 1, 2022- March 31, 2023)(Percentage figures are changes from the previous fiscal year)
Profit attributable toProfit per
Net sales
Operating profit
Ordinary profit
owners of parent
share
Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

352,000

29.8

6,600

-

7,500

-

5,000

-

217.57

Note: Whether changes to the latest forecasts for consolidated figures have been made: No- 1 -* NOTE(1) Changes in the State of Material Subsidiaries during the Period: None
Newly included: – (Name) –Excluded: –(Name) –(2) Adoption of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements: Yes
Note: For details, please refer to “(3) Notes Regarding Quarterly Consolidated Financial Results (Application of Special Accounting Methods for
Presenting Quarterly Consolidated Financial Statements)” under “2. Quarterly Consolidated Financial Statements and Important Notes” on page 10 of
the attached materials.

(3) Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements(a) Changes in accounting principles accompanying the amendment of accounting standards: None(b) Changes other than those in (a) above: None(c) Changes in accounting estimates: None(d) Retrospective restatements: None
(4) Number of Shares Issued (Common shares)(a) Number of shares issued at the end of the period (including treasury shares)
Third Quarter of Fiscal 2022
24,077,510 sharesFiscal 2021(b) Number of treasury shares at the end of the period
Third Quarter of Fiscal 2022
1,251,810 sharesFiscal 2021(c) Average number of shares issued during the period
Third Quarter of Fiscal 2022
22,871,336 shares
Third Quarter of Fiscal 2021

24,077,510 shares
1,096,640 shares
23,298,519 shares* These consolidated financial results are not included in the scope of quarterly audits by certified public accountants or audit
corporations.
* Explanation of the Appropriate Use of Performance Forecasts and Other Related Items(Caution concerning future descriptions etc.)
The above estimate has been compiled based on information available at the time this disclosure was made. The actual earnings are
subject to change from the estimated values due to various factors.
For assumed conditions underlying the earnings forecast and cautionary statements in using the earnings forecast, please refer to“Explanation Regarding Future Estimate Information such as Consolidated Financial Performance Estimates” on page 5.

- 2 -Index of Attached Documents
1. Qualitative Information Regarding Results of the Third Quarter for Fiscal 2022 ...................................................................

4(1) Explanation Regarding Consolidated Operating Results ...................................................................................................

4(2) Explanation Regarding Financial Position .........................................................................................................................

5(3) Explanation Regarding Future Estimate Information such as Consolidated Financial Performance Estimates .................

5

2. Quarterly Consolidated Financial Statements and Important Notes ........................................................................................

6(1) Quarterly Consolidated Balance Sheets .............................................................................................................................

6(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income .........

8

Quarterly Consolidated Statements of Income
Third Quarter Consolidated Cumulative Accounting Term .....................................................................................

8

Quarterly Consolidated Statements of Comprehensive Income
Third Quarter Consolidated Cumulative Accounting Term .....................................................................................

9(3) Notes Regarding Quarterly Consolidated Financial Results ..............................................................................................

10(Note Related to Going Concern Assumption) ................................................................................................................

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

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

10

Note: This document has been translated from the original Japanese version for reference purposes only. In the event of any
discrepancy between this translated document and the original Japanese version, the original shall prevail.
The original disclosure in Japanese was released on February 7, 2023 at 13:30 (GMT+9).
The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from thetranslation.

- 3 -1. Qualitative Information Regarding Results of the Third Quarter for Fiscal 2022
(1) Explanation Regarding Consolidated Operating Results
During the first nine months of the fiscal year under review, the global economy overall experienced a moderate recovery,
despite geopolitical risks from the protraction of the situation in Ukraine and unstable market conditions caused by monetary
tightening around the world. Amid the normalization of economic activities, the Japanese economy also saw signs of moderate
improvement, although it did not result in a full-scale recovery from the COVID-19 pandemic. However, the businessenvironment surrounding TOPY INDUSTRIES, LIMITED (the “Group”) remained uncertain, as cost increases continued for
coal, electricity, other raw materials, and logistics, etc., in addition to the impacts from reduced production of automakers causedby semiconductor and other parts shortages and weaker economic activities in China.
Under these circumstances, the Group launched its new Medium-term Management Plan, TOPY Active & Challenge 2025,
which will cover the period from FY2022 to 2025. We have set the four areas of promote segment management, strengthen
overseas profitability, strengthen domestic business base, and contribute to decarbonization as the Group Basic Strategy, and weare steadily implementing measures to strengthen profitability utilizing the business foundation established in the previous
Medium-term Management Plan. Moreover, we are working to promote sustainability management that leverages the Group’s
strengths to create new value and solve social issues, through TOPY Sustainable Green Vision 2050, a long-term sustainability
vision aiming for carbon neutrality by 2050.
The financial results for the first nine months of the fiscal year under review include consolidated net sales of ¥248,801 million(up 26.3% year on year), operating profit of ¥5,355 million (compared to an operating loss of ¥849 million in the same period of
the previous year), ordinary profit of ¥6,255 million (compared to an ordinary loss of ¥672 million in the same period of theprevious year), and profit attributable to owners of parent was ¥4,666 million (compared to loss attributable to owners of parentof ¥1,490 million in the same period of the previous year). This was attributed to large increases in net sales and profits comparedto the same period of the previous fiscal year owing to cost improvements from structural reforms, optimization of selling prices
in line with cost increases for raw materials and electricity, and supplementing the strong demand for ultra-large wheels formining equipment.
Performance by Segment(Steel Segment)
In the steel industry, demand for steel materials for construction and manufacturing remained strong. The price of steel scrap,
the main raw material, remained at elevated levels, while the prices of electricity and other raw materials also remained high.
Given these circumstances, the Group worked to optimize steel sales prices in response to the costs of steel scrap, electricity,and other raw materials and to sell products with high profit margins, and to win orders with an emphasis on profitability. As aresult, net sales increased to ¥78,555 million (up 18.8% year on year), and operating profit increased to ¥6,026 million (compared
to an operating loss of ¥323 million in the same period of the previous year).
(Automotive & Industrial Machinery Components Segment)
In the automotive industry, the production volume in Japan moderately recovered from the level in the same period of theprevious year due to shortages of semiconductors and other parts as well as a slower than anticipated recovery in automobile
production due to the impacts of weaker economic activities in China. In the construction machinery industry, there was strong
demand in the United States and Southeast Asia, but currently, impacts on construction machinery production due to parts
shortages have begun to materialize. Demand for mining machinery remained strong amid robust demand for resources.
Given these conditions, the Group worked to optimize sales prices in response to the rises in the costs of electricity, and otherraw materials in addition to steadily winning demand for parts for the undercarriages of construction machinery and ultra-large
wheels for mining equipment. As a result, net sales totaled ¥150,723 million (up 25.6% year on year). However, operating profit
totaled ¥3,098 million (down 18.8% year on year), impacted significantly by the decrease in sales volume of models using ourwheels for passenger vehicles and substantially higher costs for marine transport and electricity.
(Power Segment)
The business environment remained more challenging than expected in the power business due to elevated coal prices, a fuelfor power generation, and delayed improvement in electricity selling prices owing to higher costs caused by yen weakness. Given
these circumstances, the Group worked to optimize electricity selling prices, but could not keep pace with rising costs. As a result,net sales stood at ¥14,746 million (up 132.3% year on year) and the operating loss was ¥802 million (compared to an operating
loss of ¥1,463 million in the same period of the previous year).
(Business Development Segment)
The Group manufactures and sells synthetic mica used in cosmetics and other products. In the synthetic mica business, theGroup steadily captured the recovery in demand for cosmetics domestically and internationally. Reflecting this situation, net
sales rose 7.1% year on year, to ¥748 million with an operating profit amounting to ¥97 million (compared to an operating lossof ¥163 million in the same period of the previous fiscal year).
(Leasing Segment)
In the leasing business, operating profit was ¥534 million (up 1.5% year on year).
(Others)
The Group operates a civil engineering and construction business, sports club OSSO, and other businesses. Net sales came to¥4,027 million (up 7.3% year on year) and operating profit was ¥367 million (up 21.0% year on year).

- 4 -(2) Explanation Regarding Financial Position
Total assets at the end of the third quarter of the consolidated fiscal year under review stood at ¥301,782 million, an increaseof ¥19,586 million from the end of the previous consolidated fiscal year. This was mainly due to increases of ¥15,161 million innotes and accounts receivable - trade, and contract assets, ¥2,614 million in raw materials and supplies, and ¥2,058 million in
cash and deposits.
Total liabilities were ¥179,148 million, an increase of ¥10,655 million compared with the end of the previous consolidated
fiscal year. This was caused mainly by increases of ¥9,543 million in electronically recorded obligations - operating and of ¥5,803
million in long-term borrowings, compared to a decrease of ¥4,107 million in short-term borrowings.
Total net assets came to ¥122,634 million, an increase of ¥8,931 million from the end of the previous consolidated fiscal year.
This was mainly due to increases of ¥6,358 million in foreign currency translation adjustments and of ¥3,748 million in retained
earnings.
(3) Explanation Regarding Future Estimate Information such as Consolidated Financial Performance Estimates
Despite expectations for the moderate recovery to continue, the outlook for the global economy is forecast to remain uncertain,
a rise in geopolitical risks, including the prolonged situation in Ukraine, inflation, and fluctuations in financial and capital markets
amid monetary tightening among other factors.
As for the business environment surrounding the Group, the uncertain situation is expected to continue, amid elevated pricesof steel scrap, coal, electricity, and other raw materials and concerns that the impacts of semiconductor and other parts shortages
could affect not only automobile production, but also construction machinery as well.
The consolidated financial forecasts for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023) have notbeen changed from those announced on May 11, 2022. This decision has been made based on information available to the Groupas of the date of issuance of this release. The actual results may vary from the forecast due to various factors that will arise in the
future.

- 5 -2. Quarterly Consolidated Financial Statements and Important Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 6 -As of December 31, 2022

21,03723,09560,54575,707

27,734
6,336
21,3687,483(86)
144,420

28,4097,762
23,983
6,778(98)
165,637

95,234(66,774)
28,460220,159(174,205)
45,953
15,3392,175(1,315)859
2,729
41,682(39,686)
1,995
95,33897,886(69,658)
28,227
227,564(182,074)
45,49015,624
1,547(1,008)539
3,549
43,296(41,047)
2,248
95,679

3,440
3,440

3,238
3,238

27,506
204
1,834
397
9,143
(89)
38,996
137,775
282,195

25,953205
696
397
10,056(81)
37,227
136,145
301,782(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Lease liabilities
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Provision for corporate officers' retirement benefits
Provision for share awards for directors (and otherofficers)
Provision for retirement benefits for directors (andother officers)
Reserve for repairs
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 7 -As of December 31, 2022

33,731
15,55222,807158
891
14,05587,19634,17125,09518,700108734
15,092
93,90337,00026,228
235
6,190
163

37,00032,032
172
4,301
159

23

11

25

10

324
9,155
346
1,603
81,296
168,492

426
9,390
266
1,473
85,244
179,148

20,98318,606
62,114(2,287)
99,417

20,98318,60665,862(2,503)102,950

9,990

8,833

19
1,692
1,537
13,240
1,045
113,703
282,195

(12)
8,051
1,547
18,4181,265
122,634
301,782

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Third Quarter Consolidated Cumulative Accounting Term)(Millions of yen)
Nine months ended
December 31, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on reversal of provision incurred from businesscombination
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Business structural reform expenses
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent- 8 -Nine months ended
December 31, 2022

196,974
173,830
23,14323,993(849)

248,801
214,765
34,03528,679
5,355

99
724
461

89
700
215

－

292

333
1,618

459
1,756

358

556

705

－

378
1,441
(672)

301
857
6,255

36
6

13
72

791

－

834

85

4
166
352
6
529
(367)
1,072
(1,439)50(1,490)

4
249
76
－
329
6,011
1,244
4,767
101
4,666

(Quarterly Consolidated Statements of Comprehensive Income)(Third Quarter Consolidated Cumulative Accounting Term)(Millions of yen)
Nine months ended
December 31, 2021
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests- 9 -Nine months ended
December 31, 2022

(1,439)

4,767

2,046
1
1,672
28

(1,196)
(31)
5,684
8

603

870

4,352
2,912

5,335
10,102

2,815

9,844

97

257

(3) Notes Regarding Quarterly Consolidated Financial Results(Note related to Going Concern Assumption)
Not applicable.
(Note on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable.
(Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements)
Tax expenses were calculated by multiplying the rationally estimated effective tax rate after applying tax effect accounting to
profit before income taxes for the consolidated fiscal year, which includes the current third quarter under review, by profit before
income taxes for the third quarter.

- 10 -