Consolidated Basis Results of the First Quarter for Fiscal 2021
(April 1, 2021 – June 30, 2021)
August 3, 2021
TOPY INDUSTRIES, LIMITED
Stock listing: Tokyo, Nagoya stock exchanges
7231
URL: http://www.topy.co.jp/en/index.html
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 report: August 6, 2021
Scheduled date for dividend payment:‒
Preparation of supplementary explanatory materials: No
Holding of quarterly financial results meeting:No
Registered Company name:
Code number:
Representative:
Contact:(Figures of less than ¥1 million have been omitted)
1. Consolidated Financial and Operating Results of the First Quarter for Fiscal 2021 (April 1, 2021 – June 30, 2021)(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
First Quarter of Fiscal 2021

55,737First Quarter of Fiscal 2020
(Note) Comprehensive income:

45,974%

Million yen

21.2

Million yen%

Million yen

%

(796)

–

(1,112)–（34.0）（2,290）－（2,282）First Quarter of Fiscal 2021
¥1,979 million
First Quarter of Fiscal 2020-¥2,656 million

–
–%
–%

(2,238)–

Profit per share

（874）

－

Profit per shareafter full dilution

Yen(47.74)95.30

First Quarter of Fiscal 2021
First Quarter of Fiscal 2020

%

Yen
–
–

(2) Consolidated Financial Position
Total assets

Net assets

Ratio of shareholders’equity to total assets

Million yen
Million yen
271,501
110,069
264,672
108,385First Quarter of Fiscal 2021
¥109,039 million

First Quarter of Fiscal 2021
Fiscal 2020(For reference) Shareholders’ equity:

Net assets per share

%
Yen
40.2
4,680.70
40.6
4,611.46
Fiscal 2019 ¥107,428 million

2. Dividends
Dividends per share
End of second
quarter

End of first quarterEnd of third quarterEnd of fiscal year

Full fiscal year

Yen

Yen

Yen

Yen

Yen

Fiscal 2020

－

0.00

－

20.00

20.00

Fiscal 2021

－
－

40.00

40.00

Fiscal 2021 (Forecasts)
0.00
Note: Whether changes to the latest dividend forecasts have been made: No

3. Consolidated Financial Forecasts for Fiscal 2021 (April 1, 2021 – March 31, 2022)(Percentage figures are changes from the same period of the previous fiscal year)
Profit attributable toProfit per
Net sales
Operating profit
Ordinary profit
owners of parent
shareMillion yen%

Million yen%

Million yen

Fiscal 2021
235,000
4.4
3,500
－
4,000
Note: Whether changes to the latest forecasts for consolidated figures have been made: No
– 1 –

%

Million yen

%

Yen

－

3,000

418.2

128.78

* 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 the Preparation of Quarterly Consolidated Financial Statements: Yes
Note: For details, please refer to “Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements.”(3) Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements(a) Changes in accounting principles accompanying the amendment of accounting standards: Yes(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 stock)
First Quarter of Fiscal 2021
24,077,510 sharesFiscal 2020(b) Number of treasury stock at the end of the period
First Quarter of Fiscal 2021
781,919 sharesFiscal 2020(c) Average number of shares issued during the period
First Quarter of Fiscal 2021
23,295,707 sharesFirst Quarter of Fiscal 2020

24,077,510 shares
781,625 shares
23,494,156 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 andcautionary 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 First Quarter for Fiscal 2021 .....................................................................

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
First Quarter Consolidated Cumulative Accounting Term ......................................................................................

8

Quarterly Consolidated Statements of Comprehensive Income
First 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(Changes in Accounting Policies) ..................................................................................................................................

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 3, 2021 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. 1. Qualitative Information Regarding Results of the First Quarter for Fiscal 2021
(1) Explanation Regarding Consolidated Operating Results
During the first quarter of the consolidated fiscal year under review, the global economy continued to face a difficult environment
due to the COVID-19 pandemic. However, as vaccinations progressed, there were signs of recovery in the U.S., Europe, and otherregions, although the recovery in economic activities varied by country and region. The Japanese economy saw improvements inexports and industrial production and showed signs of a recovery overall, despite the continued restrictions on economic activity
mainly due to the third declaration of a state of emergency in four prefectures in April 2021.
Under these circumstances, the Group worked to ensure a stable supply of products, while continuing to take measures to preventthe spread of COVID-19, in response to a significant increase in demand for automobiles and construction machinery as the global
economy picked up. In addition, we continued to reduce fixed costs, which we implemented as part of emergency measures tobolster its earnings strength in the previous fiscal year, and established the Sales Division in April this year under the direct controlof management to strengthen our sales capabilities. Moreover, we have steadily implemented various measures in line with our
medium-term business plan “Growth & Change 2021,” such as by promoting the development and sales expansion of uniqueproducts that meet the needs of our customers and society. The financial results for the first quarter of the fiscal year under review
include consolidated net sales of ¥55,737 million (up 21.2% year on year) due to the recovery in demand in the Automotive &Industrial Machinery Components Business and an improvement in steel sales prices in response to a rise in steel scrap prices.
However, given the impact of a sharp rise in the price of coal, the fuel for power generation, we posted an operating loss of ¥874
million (compared to an operating loss of ¥2,290 million in the same period of the previous year), and the ordinary loss of ¥796
million (compared to an ordinary loss of ¥2,282 million in the same period of the previous year). The loss attributable to ownersof parent was ¥1,112 million (compared to loss attributable to owners of parent of ¥2,238 million in the same period of the previousyear).
The Group has applied Accounting Standards for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement
No. 29 issued on March 31, 2020) since the beginning of the first quarter of the consolidated fiscal year under review.
Performance by Segment(Steel Business)
In the steel industry, demand for steel materials of construction and manufacturing companies remained strong. On the other hand,the electric furnace industry continued to face a challenging situation as the price of steel scrap, the main raw material of steel,continued to rise sharply from the second half of the previous fiscal year, reflecting a sharp increase in demand for steel in China,
which had recovered from the COVID-19 pandemic.
Given these circumstances, the Group worked to improve steel sales prices and focused on sales to the construction industry, andvolume increased year on year. However, due to changes in accounting principles and other factors, net sales decreased to ¥15,077
million (down 0.9% year on year). Despite our efforts to improve steel sales prices, we were unable to pass on increased costs due
to higher steel scrap prices to steel sales prices, resulting in an operating loss of ¥ 493 million (compared to an operating profit of¥671 million in the same period of the previous year).
(Automotive & Industrial Machinery Components Business)
In the automotive industry, despite the impact of semiconductor shortage and other factors, demand increased worldwide,
especially in China, and production volume was significantly higher than in the same period of the previous year. In theconstruction machinery industry, demand for hydraulic shovels expanded mainly in the United States and Southeast Asia. As formining machinery, demand remained strong due to rising resource prices.
Given these conditions, the sales volume of mainly automobile wheels and parts for the undercarriages of construction machinery
increased. As a result, net sales totaled ¥37,831million (up 35.5% year on year) and operating profit stood at ¥979 million(compared to operating loss of ¥1,826 million in the same period of the previous year).
(Power Business)
The business environment remained challenging in the power business due mainly to the suppression of coal fueled power
generation backed by global warming issues and rising prices of coal, a fuel for power generation.
Given these circumstances, the Group worked on the stable supply of electricity in line with its business plan. As a result, net sales
stood at ¥1,414 million (up 4.5% year on year) and operating loss was ¥429 million (compared to operating loss of ¥184 million
in the same period of the previous year).
(Science Business)
The Group manufactures and sells synthetic mica and crawler robots. Sales of mica for cosmetics and other products decreased inline with a decline in demand for cosmetics due to the spread of COVID-19. As a result, net sales fell 25.1% year on year to ¥213
million, and operating loss amounted to ¥81 million (compared to an operating loss of ¥13 million in the same period of theprevious fiscal year.)(Leasing Business)
In the leasing business, operating profit was ¥173 million (down 0.3% year on year).
(Others)
The Group operates a civil engineering and construction business, sports club OSSO, and other businesses.Net sales came to¥1,199 million (up 0.3% year on year) and operating profit was ¥26 million (down 0.4% year on year ).

– 4 –(2) Explanation Regarding Financial Position
Total assets at the end of the first quarter of the consolidated fiscal year under review stood at ¥271,501 million, representing an
increase of ¥6,829 million from the end of the previous consolidated fiscal year. Primary factors for the increase included
increases of ¥3,938 million in inventories of raw materials and supplies, and ¥1,457 million in investment securities.
Total liabilities were ¥161,432 million, representing an increase of ¥5,145 million compared with the end of the previous
consolidated fiscal year. This was caused mainly by an increase of ¥7,735 million in short-term loans payable.
Total net assets came to ¥110,069 million, representing an increase of ¥1,683 million from the end of the previous consolidated
fiscal year. This was mainly due to an increase of ¥1,967 million in foreign currency translation adjustment.
(3) Explanation Regarding Future Estimate Information Such as Consolidated Financial Performance Estimates
While the global economy is expected to recover from the downturn in economic activities, the Group's operating environment islikely to remain uncertain due to concerns including the impact of the U.S.-China conflict and the semiconductor shortage on
automotive production and the globally tight supply of marine container transportation services, in addition to restrictions on socialand economic activities reflecting the resurgence of COVID-19 mutated strains.
The consolidated financial forecasts for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022) have not beenchanged from those announced on May 11, 2021. This decision has been made based on information available to the Group as ofthe 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, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, andcontract assets
Merchandise 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 June 30, 2021

24,477
51,10925,583－－50,98320,926
4,902
14,574
6,427△58
122,360

22,294
5,596
16,451
6,756△59
127,605

93,281△64,517

94,490△65,356

28,763
213,046△168,097
44,94915,2792,584△1,461

29,134
216,582△170,004
46,577
15,2782,620△1,572

1,122
6,051
44,073△42,148
1,924
98,091

1,047
3,910
44,295△42,287
2,007
97,954

3,890
3,890

3,714
3,714

29,257
206
1,634
386
8,892
△47
40,329142,311
264,672

30,714
205
1,810
386
9,154
△44
42,226
143,896
271,501

(Millions of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of bonds payable
Lease obligations
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease obligations
Deferred tax liabilities
Provision for corporate officers' retirement
benefits
Provision for share awards for directors (andother officers)
Provision for retirement benefits for directors(and other 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 June 30, 2021

27,00913,21523,982
5,300
232
923
13,53984,201

27,956
14,13831,717300
206
480
15,04089,83927,00024,793367
5,736

27,00023,879
333
6,298

211

151

36

36

60

19

398
10,782358
2,339
72,084
156,286

223
10,970344
2,335
71,593
161,432

20,98318,60662,023△1,943

20,98318,606
60,615△1,944

99,66998,261

9,443

10,49712△2,266
568
7,758
957
108,385
264,672

1△299
577
10,7771,029
110,069
271,501

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(First Quarter Consolidated Cumulative Accounting Term)(Millions of yen)Three months ended
June 30, 2020Three months ended
June 30, 2021

Net sales
Cost of sales

45,974
41,25755,73748,658Gross profit

4,716

7,078

Selling, general and administrative expenses

7,006

7,953

△2,290△874

Interest income
Dividend income

25
345

22
353

Share of profit of entities accounted for using equity
method

104

－

Other

167

96

Total non-operating income

642

472

Interest expenses
Foreign exchange losses

128
321

118
－

Share of loss of entities accounted for using equity
method

－

176

Other

185

98

635
△2,282

393△796

Gain on sale of non-current assets
Gain on sale of investment securities

0
1

0
－

Total extraordinary income

10Extraordinary losses
Loss on sale of non-current assets

03

Loss on retirement of non-current assets

45

28

Total extraordinary losses

45

31△2,326

△826

△98

261

△2,228△1,088Operating loss
Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary loss
Extraordinary income

Loss before income taxes
Income taxes
Loss
Profit attributable to non-controlling interests
Loss attributable to owners of parent

– 8 –

10

23

△2,238△1,112

(Quarterly Consolidated Statements of Comprehensive Income)(First Quarter Consolidated Cumulative Accounting Term)(Millions of yen)Three months ended
June 30, 2020
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 noncontrolling interests– 9 –Three months ended
June 30, 2021

△2,228△1,088907
1△1,222
12

1,048
△10
1,624
9

△127

397

△428
△2,656

3,068
1,979

△2,559

1,907

△97

71

(3) Notes Regarding Quarterly Consolidated Financial Results(Note Related to Going-Concern Assumption)
None(Note on Significant Changes in the Amount of Shareholders’ Equity)
None(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 first quarter under review, by profit before income
taxes for the first quarter.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Group has decided to apply the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the first quarter of the consolidated fiscal year under review and recognize revenue from goods or services
which the Group promised to provide at an amount expected to be received in exchange for the goods or services at the time whencontrol over the promised goods or services has been transferred to a customer.
As a result, for the first quarter of the consolidated fiscal year under review, net sales and cost of sales decreased by ¥12,806 millionand ¥12,772 million, respectively. Also, operating loss, ordinary loss and loss before income taxes increased by ¥33 million,
respectively. In addition, the balance of retained earnings at the beginning of the period increased by ¥171 million.
Because the Accounting Standard for Revenue Recognition, etc. has been applied, “Notes and accounts receivable - trade," which
was included in "Current assets" in the consolidated balance sheets for the previous fiscal year, began to be included in "Notes,
accounts receivable-trade and contract assets" from the first quarter of the consolidated fiscal year under review.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Group has applied "Accounting Standard for Fair Value Measurement" (ASBJ Statement No.30, July 4, 2019), etc. from the
beginning of the first quarter of the consolidated fiscal year under review. In accordance with the transitional treatment set forth in
Article 19 of Accounting Standard for Fair Value Measurement and Article 44-2 of "Accounting Standard for Financial Instruments"(ASBJ Statement No.10, July 4, 2019), the Group has applied prospectively a new accounting policy prescribed by AccountingStandard for Fair Value Measurement, etc. This has no effect on the quarterly consolidated financial statements.

– 10 –