Consolidated Basis Results of the First Quarter for Fiscal 2022
(April 1, 2022 – June 30, 2022)
August 5, 2022
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 10, 2022
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 2022 (April 1, 2022 – June 30, 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
First Quarter of Fiscal 2022
First Quarter of Fiscal 2021
(Note) Comprehensive income:Million yen
75,00055,737% Million yen
34.6
(569)
21.2
(874)
First Quarter of Fiscal 2022
First Quarter of Fiscal 2021

Million yen
%
358
(796)
¥2,134 million –7.8%¥1,979 million–%

Million yen
388(1,112)%-

Profit per shareafter full dilution

Profit per share
Yen
16.93
(47.74)First Quarter of Fiscal 2022
First Quarter of Fiscal 2021

%

-

Yen
-

(2) Consolidated Financial Position
Total assets
First Quarter of Fiscal 2022
Fiscal 2021
(For reference) Shareholders’ equity:

Net assets

Equity ratio

Million yen
Million yen
290,092
115,150
282,195
113,703First Quarter of Fiscal 2022 ¥1114,003 million

Net assets per share
%
Yen
39.3
4,995.64
39.9
4,902.25
Fiscal 2021 ¥112,657 million

2. Dividends
Dividends per share
1Q-end3Q-end2Q-endEnd of FY

Annual

Yen

Yen

Yen

Yen

Yen

Fiscal 2021

－

0.00

－

20.00

20.00

Fiscal 2022

－
－

70.00

70.00

0.00
Note: Whether changes to the latest dividend forecasts have been made: None
Fiscal 2022 (Forecasts)

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
shareMillion yen% Million yen% Million yen
Full year
352,000
29.8
6,600
7,500
Note: Whether changes to the latest forecasts for consolidated figures have been made: No
1%-Million yen
5,000

%
-

Yen
217.57

* 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
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)
First Quarter of Fiscal 2022
24,077,510 sharesFiscal 2021(b) Number of treasury shares at the end of the period
First Quarter of Fiscal 2022
1,256,834 sharesFiscal 2021(c) Average number of shares issued during the period
First Quarter of Fiscal 2022
22,940,753 sharesFirst Quarter of Fiscal 2021

24,077,510 shares
1,096,640 shares
23,295,707 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 fromthe 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 First 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 Estimates5

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

8(For the Three-month Period)

8

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

99(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 August 5, 2022 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 First Quarter for Fiscal 2022
(1) Explanation Regarding Consolidated Operating Results
During the first three months of the fiscal year under review, the global economy overall started to show signs of recovery,
even though some sectors stalled amid the uncertain environment, including COVID-19 and increasing geopolitical risk. The
Japanese economy also showed signs of an improvement in business overall as economic activity normalized. The businessenvironment surrounding TOPY INDUSTRIES, LIMITED (the “Group”), meanwhile, remained uncertain, as rises in the priceof coal, energy, other raw materials, and logistics, etc., continued, in addition to the lockdowns in China and the decrease in auto
production due to supply shortages of semiconductors, among other factors.
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 we are implementing
measures to strengthen profitability utilizing the business foundation established in the previous Medium-term Management Plan.
Moreover, under the new Medium-term Management Plan, we have established measures based on the newly formulated Basic
Sustainability Policy and materiality (key issues) to promote sustainability management that leverages our strengths to create
new value and solve social issues.
The financial results for the first three months of the fiscal year under review include consolidated net sales of ¥75,000 million(up 34.6% year on year), mainly due to optimization of sales prices in response a rise in prices of raw materials and energy. As
for profit, given the impact of a decrease in sales volume of automobile wheels and rising costs due to increases in the price ofcoal, a fuel for power generation, among other factors, the Group posted an operating loss of ¥569 million (compared to an
operating loss of ¥874 million in the same period of the previous year), and an ordinary loss of ¥358 million (compared to an
ordinary loss of ¥796 million in the same period of the previous year). The profit attributable to owners of parent was ¥388
million (compared to loss attributable to owners of parent of ¥1,112 million in the same period of the previous year).
Performance by Segment
From the first quarter of the current fiscal year, the Group has changed the name of the reportable segment previously referred
to as Science to Business Development.
This is a change to the segment name, and there is no impact of the financial results of the segment.
(Steel Business)
In the steel industry, demand for steel materials for construction remained strong. In addition, the price of steel scrap, the main
raw material, declined, even though the prices of energy and other raw materials remained high.
Given these circumstances, the Group worked to optimize steel sales prices in response to the costs of steel scrap, energy, andother raw materials and to sell products with high profit margins. As a result, net sales increased to ¥26,387 million (up 75.0%
year on year), and operating profit increased to ¥199 million (compared to an operating loss of ¥493 million in the same periodof the previous year).
(Automotive & Industrial Machinery Components Business)
In the automotive industry, production volume decreased significantly from the level in the same period of the previous year
in Japan due to the impact of the supply shortage of semiconductors, etc. and lockdowns in China. In the construction machineryindustry, demand decreased in Japan, but remained strong in the United States and Southeast Asia. Demand for mining machinery
remained strong due to rising resource prices.
Given these conditions, the Group worked to optimize sales prices in response to the rises in the costs of energy, and other raw
materials in addition to steadily winning demand for parts for the undercarriages of construction machinery and ultra-large wheels
for mining trucks. As a result, net sales totaled ¥43,948 million (up 16.2% year on year). However, operating profit stood at ¥607
million (down 38.0% year on year), impacted significantly by the decrease in sales volume of automobile wheels.
(Power Business)
The business environment remained challenging in the power business as improvements in electricity sale prices trailed thecontinued rise in the price of coal, a fuel for power generation.
As a result, net sales stood at ¥3,089 million (up 118.4% year on year) and the operating loss was ¥557 million (compared to an
operating loss of ¥429 million in the same period of the previous year).
(Business Development Business)
The Group manufactures and sells synthetic mica and crawler robots. In the synthetic mica business, the Group steadily
captured the recovery in demand for cosmetics overseas. Reflecting this situation, net sales rose 32.9% year on year, to ¥283
million with an operating profit amounting to ¥61 million (compared to an operating loss of ¥81 million in the same period of
the previous fiscal year).
(Leasing Business)
In the leasing business, operating profit was ¥178 million (up 2.7% year on year).

(Others)
The Group operates a civil engineering and construction business, sports club OSSO, and other businesses. Net sales came to¥1,290 million (up 7.6% year on year) and operating profit was ¥128 million (up 387.2％ 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 ¥290,092 million, an increaseof ¥7,896 million from the end of the previous consolidated fiscal year. This was mainly due to increases of ¥4,144 million innotes and accounts receivable - trade and contract assets and ¥1,900 million in merchandise and finished goods.
Total liabilities were ¥174,941 million, an increase of ¥6,449 million compared with the end of the previous consolidated
fiscal year. This was caused mainly by increases of ¥10,490 million in short-term borrowings, but decreases of ¥2,914 in notes
and accounts payable - trade.
Total net assets came to ¥115,150 million, an increase of ¥1,447 million from the end of the previous consolidated fiscal year.
This was mainly due to an increase of ¥2,267 million in foreign currency translation adjustments, but a decrease of ¥647 million
in valuation difference on available-for-sale securities.
(3) Explanation Regarding Future Estimate Information such as Consolidated Financial Performance Estimates
While the outlook for the global economy is uncertain, with concerns over resumed spread of COVID-19, a rise in geopoliticalrisks, including the prolonged situation in Ukraine, and fluctuations in financial and capital markets amid monetary tightening
among other factors, the moderate recovery in economic activity is expected to continue. As for the business environment
surrounding the Group, there are some concerns about the rises in prices of coal, energy, and other raw materials and thepersistence of short supplies of components, including semiconductors. However, the price of steel scrap is expected to remain
lower than initial forecasts. In addition, a recovery in automotive production and progress in optimization of sales prices are
expected.
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 June 30, 2022

21,03722,50860,54564,69027,734
6,336
21,3687,483(86)
144,420

29,635
7,484
21,995
7,560(89)
153,785

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
95,33896,080(67,777)
28,303
223,236(177,342)
45,893
15,503
1,536
(952)
583
2,956
42,749(40,588)
2,160
95,401

3,440
3,440

3,465
3,465

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

26,457
207
673
397
9,784
(80)
37,440136,307
290,092

(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-sale securities
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, 2022

33,731
15,55222,807158
891
14,05587,19630,816
16,35033,298125531
14,684
95,80737,00026,228
235
6,190
163

37,00025,870
207
4,477
135

23

23

25

7

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

358
9,206
347
1,500
79,134
174,941

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

20,98318,60662,042(2,513)
99,118

9,990
19
1,692
1,537
13,240
1,045
113,703
282,195

9,343
39
3,960
1,541
14,884
1,146
115,150
290,092

(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, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating 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
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Business structural reform expenses
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

Three months ended
June 30, 2022

55,73748,658
7,078
7,953
(874)

75,00066,273
8,726
9,295
(569)

22
353
30

32
360
595

－

31

66
472

145
1,166

118

150

176

－

98
393
(796)

87
238
358

0
－
0

7
55
62

3
28
－
31
(826)
261
(1,088)23(1,112)

－
69
76
145
275
(152)
427
39
388

Quarterly Consolidated Statements of Comprehensive Income(For the Three-month Period)(Millions of yen)Three months ended
Three months ended

June 30, 2021
June 30, 2022
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

9(1,088)

427

1,048
(10)
1,624
9
397

(639)
20
1,900
3
422

3,068
1,979

1,706
2,134

(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 first quarter under review, by profit before
income taxes for the first quarter10