Consolidated Basis Results of the First Quarter for FY2024(April 1, 2024 - June 30, 2024)
August 2, 2024
Stock listing: Tokyo, Nagoya stock exchanges

Registered Company name:TOPY INDUSTRIES, LIMITED

Code number:
Representative:

7231
URL: http://www.topy.co.jp/en/index.html
Hiromi Ishii, Representative Director, President and CEO

Contact:

Tomoki Oyaizu, Managing Executive Officer and General Manager, General Affairs Department
Telephone: 03-3493-0777 / (Overseas) 81-3-3493-0777

Scheduled date for dividend payment:－

Preparation of supplementary materials:

YES

Holding of financial results meeting:No(Figures of less than ¥1 million have been omitted)

1. Consolidated Financial and Operating Results of the First Quarter for Fiscal 2024 (April 1, 2024 - June 30, 2024)(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%
First Quarter of Fiscal 2024
73,636(9.7)
135(91.3)
1,364(42.2)
725(58.2)First Quarter of Fiscal 2023
81,522
8.7
1,567
2,358
557.5
1,734
346.4
－
(Note) Comprehensive income:First Quarter of Fiscal 2024
First Quarter of Fiscal 2023

(63.7)%
140.0%

Profit per shareafter full dilution

Profit per share
Yen
31.77
75.97

First Quarter of Fiscal 2024
First Quarter of Fiscal 2023

¥1,857 million¥5,120 million

Yen
－
－

(2) Consolidated Financial Position
Total assets

Net assets

Million yen
295,431298,291First Quarter of Fiscal 2024
Fiscal 2023
(For reference) Shareholders’ equity:

Equity ratio

Million yen
141,176
140,988

First Quarter of Fiscal 2024

¥139,780 million

Fiscal 2023

¥139,682 million

Net assets per share
%
47.3
46.8

Yen
6,123.81
6,119.46

2. Dividends
1Q-end2Q-endYen

Dividends per share
3Q-end
Yen
Yen
30.00
－

Fiscal 2023－
Fiscal 2024－
Fiscal 2024 (Forecasts)
30.00－(Note) Whether changes to the latest dividend forecasts have been made: None

End of FY

Annual

Yen
73.00

Yen
103.0073.00

103.003. Consolidated Financial Forecasts for Fiscal 2024 (April 1, 2024- March 31, 2025)(Percentage figures are changes from the previous fiscal year)
Profit attributable to
Net sales
Operating profit
Ordinary profit
Profit per shareowners of parent
Million yen% Million yen% Million yen% Million yen%
Yen
First half of Fiscal 2024
154,000 (7.2)
1,800 (54.8)
1,900 (61.1)
1,900 (43.8)
83.24
Full year
317,000 (5.1)
8,600 (17.6)
9,000 (14.0)
7,200
54.0
315.43(Note) Whether changes to the latest forecasts for consolidated figures have been made: None* 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 forpresenting quarterly consolidated financial statements)” under “2. Quarterly Consolidated Financial Statement and Important Notes” on page 8 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)
First Quarter of Fiscal 2024
24,077,510 sharesFiscal 2023(b) Number of treasury shares at the end of the period
First Quarter of Fiscal 2024
1,251,802 sharesFiscal 20223(c) Average number of shares issued during the period
First Quarter of Fiscal 2024
22,825,790 sharesFirst Quarter of Fiscal 2023

24,077,510 shares
1,251,586 shares
22,825,392 shares* Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public
accountants or an audit firm: None
* 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 3.

Index of Attached Documents
1. Overview of Operating Results ................................................................................................................................................

2(1) Overview of Quarterly Operating Results .........................................................................................................................

2(2) Overview of Quarterly Financial Position .........................................................................................................................

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

3

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

4(1) Quarterly Consolidated Balance Sheets ................................................................................... ..........................................

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

6

Quarterly Consolidated Statements of Income ............................................................................................................
(For the Three-month Period) ..................................................................................................................................

6

Quarterly Consolidated Statements of Comprehensive Income...................................................................................
(For the Three-month Period) ..................................................................................................................................

7(3) Notes Regarding Quarterly Consolidated Financial Results ..............................................................................................

8(Accounting treatment specific to the preparation of quarterly consolidated financial statements)…………………….

8(Segment information) …………………………………………………………………………………………………

8(Note on significant changes in the amount of shareholders’ equity) ..............................................................................

10(Note related to going-concern assumption) .....................................................................................................................

10(Quarterly Consolidated Cash Flow 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 August 2, 2024 at 13:30 (GMT+9).
The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from thetranslation.

- 1 -1. Overview of Operating Results(1) Overview of Quarterly Operating Results
A challenging situation continued within the Group business environment for the end of first quarter of the fiscal year due todecreased demand in the construction machinery on a global level, production halt from the certification issues among domestic
car manufacturers and a surge in prices of raw materials.
Under this business environment, we have set four key areas—promote segment management, strengthen overseas
profitability, strengthen domestic business base, and contribute to decarbonization—for our Group Basic Strategy, and we are
steadily implementing the Medium-term Management Plan “TOPY Active & Challenge 2025”. As part of the plan, the Groupdecided to revise its organization that strengthen the consolidation of the Wheel Operation's manufacturing, sales anddevelopment for the purpose of enhancing productivity and competitivity.
Net sales for the end of first quarter of the fiscal year decreased by 73,636 million (down 9.7% year on year) due to the effectfrom the decrease of demand in construction machinery on a global level. As for the statements of income, in addition to decreasein sales, operating profit decreased by ¥135 million (down 91.3 % year on year), ordinary profit decreased by ¥1,364 million(down 42.2% year on year) and profit attributable to owners of parent came to ¥725 million (down 58.2% year on year) mainly
due to the difference between the steel scrap price and the steel sales price from the surge in steel scrap prices and increased cost.
Performance by Segment
Reportable segments have been revised from the consolidated fiscal year for the first quarter. For details, please refer to “(3)Notes Regarding Quarterly Consolidated Financial Results (Segment information)” under “2. Quarterly Consolidated Financial
Statements and Important Notes”. The following comparison and analysis are based on figures in the first quarter of the previous
fiscal year after changes are made in the segment classification.
(Steel Business)
In the steel industry, demand for construction, manufacturing sectors remained stagnant and the production of domestic crude
steel production decreased year on year. Also, prices for steel scrap rised from the level in the previous fiscal year.
Given these circumstances, the Group worked to optimize steel sales prices as the price gap with purchase prices of steel scrap,
the raw material for such products, narrowed. However, net sales decreased to ¥26,630 million (down 3.9% year on year), andoperating profit decreased to ¥1,898 million (down 21.9% year on year).
(Automotive & Industrial Machinery Components Business)
In the automobile industry, production volume decreased from the level in the previous fiscal year in Japan due to the effectfrom the certification issues among other factors. While production volume increased in the overseas market including North
America and China, the share for the Japanese manufacturers in China declined. In the construction machinery industry,
worldwide demand for hydraulic shovels continued to decline. Furthermore, demand for mining machinery remained stagnant
in some regions.
Under the circumstances, the Group net sales were ¥45,184 million (down 8.5% year on year) and operating loss was ¥527
million (in comparison to operating profit of ¥859 million in the previous fiscal year) due mainly from the drastic decrease insales volume of undercarriage parts for construction machinery, reduction of sales volume of wheels for passenger vehicles by
the effect of certification issues among domestic car manufacturers and the fluctuating prices of raw materials in the overseas
market and decrease in sales volume beside other factors.
(Others)
The Group is involved in the manufacture and sale of synthetic mica, civil engineering and construction, real estate leasing,and the operation of a sports club. Due to influence from the elimination of Power Generation Business, net sales decreased to¥1,821 million (down 58.8% year on year) and operating profit was ¥228 million (compared to an operating loss of ¥353 million
in the previous fiscal year)- 2 -(2) Overview of Quarterly Financial Position
Total assets at the end of the first quarter of the consolidated fiscal year under review stood at ¥295,431 million, a decrease of¥2,860 million from the end of the previous consolidated fiscal year. This was mainly due to a decrease of ¥4,076 million innotes and accounts receivable trade and contract assets, an increase of ¥3,093 million in merchandise and finished goods, and adecrease of ¥1,686 million in investment securities.
Total liabilities were ¥154,254 million, a decrease of ¥3,048 million compared with the end of the previous consolidated fiscal
year. This was mainly due to a decrease of ¥1,351 million in income taxes payable, a decrease of ¥1,103 million in long-termborrowings and a decrease of ¥561 million in deferred tax liabilities.
Total net assets came to ¥141,176 million, an increase of ¥188 million from the end of the previous consolidated fiscal year.
This was mainly due to an increase of ¥2,305 million in foreign currency translation adjustments, a decrease of ¥1,168 million
in valuation difference on available-for-sale securities, and a decrease of ¥943 million in retained earnings.
(3) Explanation Regarding Future Estimate Information such as Consolidated Financial Performance Estimates
The future business environment ahead for the Group may continue to face challenges from decrease in the demand of
construction machinery, rise of raw material prices, possible reduction in sales volume of wheel for passenger vehicles in theoverseas, and further labor and logistic costs. The Group keeps setting fair sales prices and by developing optimal businessportfolios, we will strive to maintain profits.
The consolidated financial forecasts for the fiscal year ending March 31, 2025 (April 1, 2024 to March 31, 2025) have notbeen changed from those announced on May 10, 2024. 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.

- 3 -2. Quarterly Consolidated Financial Statements and Important Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2024
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- 4 -As of June 30, 2024

25,014

24,95470,40866,332

27,117
8,005
19,715
6,991(40)
157,21230,211
8,283
19,6486,261(40)
155,652

97,745(72,354)
25,391
229,588(190,739)
38,84815,684
1,613
(850)
762
1,957
43,421(41,509)
1,912
84,55898,783(73,414)25,369232,472(194,369)
38,10315,853
1,606
(851)
755
2,485
44,282(42,377)
1,905
84,471

3,400
3,400

3,399
3,399

42,580
204
613
529
9,274
(81)
53,119141,079
298,291

40,894
204
641
529
9,720
(81)
51,908
139,779
295,431(Millions of yen)
As of March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of bonds payable
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- 5 -As of June 30, 2024

31,494
20,88921,059
5,000
162
2,152
15,46596,22331,31920,75921,103
5,000
153
801
15,522
94,65830,00018,381
379
5,932
197

30,00017,278
365
5,371
148

51

97

15

16

225
4,198
268
1,428
61,079157,303

236
4,392
258
1,429
59,596
154,254

20,98318,606
69,953(2,503)
107,040

20,983
18,622
69,010(2,519)106,096

20,545

19,377

1
7,319
4,774
32,641
1,306
140,988298,291

0
9,625
4,680
33,683
1,396
141,176
295,431(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income(For the Three-month Period)(Millions of yen)Three months ended
June 30, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodCompensation income
Other
Total non-operating income
Non-operating expenses
Interest expenses
facilities relocation expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 6 -Three months ended
June 30, 2024

81,522
71,276
10,246
8,679
1,567

73,63664,431
9,205
9,069
135

38
405
505

51
489
400

114

88

－
81
1,145

513
64
1,607

240
－
114
354
2,358

171
104
103
379
1,364

165
165

6
6

0
23
24
2,499
736
1,762
28
1,734

0
21
22
1,348
588
760
35
725

Quarterly Consolidated Statements of Comprehensive Income(For the Three-month Period)(Millions of yen)Three months ended
June 30, 2023
ProfitOther 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- 7 -Three months ended
June 30, 2024
1,762

760

2,579
51
575
(1)

(1,192)
(0)
2,073
(93)

153

310

3,358
5,120

1,097
1,857

5,055

1,767

65

90

(3) Notes Regarding Quarterly Consolidated Financial Results(Accounting treatment specific to the preparation of quarterly consolidated financial statements)(Calculation of tax expenses)
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 first quarter under review, by profit before
income taxes for the first quarter.
(Segment information)
I Three months ended June 30, 2023 (April 1, 2023 - June 30, 2023)
1. Information regarding amounts of net sales, profits or losses, assets and other items by reportable segment(Millions of yen)AmountReportable segment
recorded in
Amount of the quarterly
Automotive
OthersFull fiscal
adjustment consolidated& Industrial(Note) 1
year
Steel
Total
(Note) 2
financial
Machinerystatements
Components(Note) 3
Net sales
Net sales tooutsidecustomers

27,69949,397

77,096

4,425

81,522－

81,522

Internal sales ortransfer between
segments

6,285

－

6,285

－

6,285

(6,285)－

Total

33,98449,397

83,382

4,425

87,808(6,285)

81,522

Segment profit
2,432
859
3,291
(353)
2,938
(1,371)
1,567(loss)(Notes) 1. The category “Others” includes the business segment not included in the reportable segments and includes
wholesale power supply, synthetic mica, indoor and outdoor sign systems, civil engineering and construction,
real estate leasing, and the operation of a sports club.
2. Profits of segment in an amount of a loss of ¥1,371 million are common corporate expenses, etc. not allocated to
the respective reportable segments. The common corporate expenses are mainly the expenses related to theadministrative divisions of the Company that are not attributable to the reportable segments.
3. Segment profit (loss) is adjusted with operating profit recorded under the quarterly consolidated financial statements.
2. Information regarding impairment losses or goodwill of non-current assets by reportable segment
Not applicable.

- 8 -II Three months ended June 30, 2024 (April 1, 2024 - June 30, 2024)
1. Information regarding amounts of net sales, profits or losses, assets and other items by reportable segment(Millions of yen)AmountReportable segment
recorded in
Amount of the quarterly
Automotive
OthersFull fiscal
adjustment consolidated& Industrial(Note) 1
year
Steel
Total
(Note) 2
financial
Machinerystatements
Components(Note) 3
Net sales
Net sales tooutsidecustomers

26,63045,18471,815

1,821

73,636－73,636

Internal sales ortransfer between
segments

5,133

－

5,133

－

5,133

(5,133)－

Total

31,76445,18476,948

1,821

78,770(5,133)73,636

Segment profit
1,898
(527)
1,371
228
1,599
(1,463)135(loss)(Notes) 1. The category “Others” includes the business segment not included in the reportable segments and includes
synthetic mica, indoor and outdoor sign systems, civil engineering and construction, real estate leasing, and theoperation of a sports club.
2. Profits of segment in an amount of a loss of ¥1,463 million are common corporate expenses, etc. not allocated to
the respective reportable segments. The common corporate expenses are mainly the expenses related to theadministrative divisions of the Company that are not attributable to the reportable segments.
3. Segment profit (loss) is adjusted with operating profit recorded under the quarterly consolidated financial statements.
2. Information regarding impairment losses or goodwill of non-current assets by reportable segment
Not applicable.
3. Notes Regarding Change, etc.in the Reportable Segment
Effective from regarding the first quarter of the current fiscal year under review, the reportable segment previously
listed as “Leasing” is now included in “Others” due to its decreased quantitative importance.
Effective from regarding the first quarter of the current fiscal year under review, the reportable segment previously
listed as “Power Business” is now included in “Others” due to the elimination of the business in the previous consolidated
fiscal year.
The segment information in the first quarter of the previous fiscal year is presented based on the reportable segmentclassification after the change.

- 9 -(Note on significant changes in the amount of shareholders’equity)
Not applicable.
(Note related to going-concern assumption)
Not applicable.
(Quarterly Consolidated Cash Flow Statements)
Cash flow calculation for the consolidated financial statement regarding the end of first quarter of the fiscal year under review
has not been prepared. Depreciation (including depreciation fees of intangible assets without goodwill) and amortization of
goodwill regarding the end of first quarter of the fiscal year under review are as follows:

Three months ended June 30, 2023

Three months ended June 30, 2024

3,063 million yen

2,852 million yen

31

31

Depreciation
Amortization of goodwill- 10 -