February 20, 2024
Company Name: TOPY INDUSTRIES, LIMITED
Representative: Hiromi Ishii, President and CEO(Code: 7231 Tokyo Stock Exchange; Prime Market,Nagoya Stock Exchange; Premier Market)
Contact: Tetsuya Sakai, Managing Executive Officer andGeneral Manager, General Affairs Department(TEL: +81-3-3493-0777)

Notice of Discontinuation of All Operations of a Consolidated Subsidiary
Topy Industries Ltd. (the “Company”) announces that its Board of Directors approved a resolution todiscontinue all operations of its consolidated subsidiary, Akemi Electric Power, Ltd., at a meeting held today.
1. Reason for operation discontinuation
Akemi Electric Power, Ltd. was established in July 1996 to enter the power generation business by effectively
utilizing existing infrastructure such as harbor facilities at the Toyohashi Plant (Toyohashi City, Aichi Prefecture)in the context of the deregulation of electric power supply. Since then, it has continued stable operations in linewith its business plan, contributing to the Company’s consolidated business results and to society bycompensating for the power shortages in Japan after the Great East Japan Earthquake.
However, in recent years, the profitability of Akemi Electric Power, Ltd. has been declining due to a sharp risein coal prices, the fuel used for power generation, and a drop in electricity market prices as a result of thestabilization of electricity supply and demand in the Chubu area, and the business environment is expected toremain challenging in the future. In addition, as the trend toward decarbonization intensifies, the Company, which
has a long-term sustainability vision of becoming carbon neutral by 2050, increasingly needs to build a businessportfolio with a lower environmental impact.
In light of these circumstances, the Company has determined that continuing the power generation business isdifficult and has decided to discontinue the power generation business of Akemi Electric Power, Ltd.
2. Summary of the consolidated subsidiary to be discontinued(1) Company NameAKEMI ELECTRIC POWER, LIMITED(2) Address

1 Akemi-cho, Toyohashi-shi, Aichi Prefecture(3) Representative

Kenji Iguchi, President and CEO(4) Business Content

Power Generation Business(5) Capital

205 million yen(6) Date of Establishment

July 4, 1996

(7) Major shareholders and ratio of shareholdingsTopy Industries, Ltd. 100%

3. Operating results for the past two years of the consolidated subsidiary to be discontinued
Fiscal 2022

Fiscal 2021

Net sales

21,957 million yen

9,718 million yen

Operating profit (loss)(566) million yen(1,957) million yen-1-4. Schedule for operation discontinuation(1) Date of Board of Directors’ resolution

February 20, 2024

(2) Date of operation discontinuation

March 31, 2024 (plan)

5. Future Outlook
The impact of this matter on the Company's consolidated financial results for the fiscal year ending March 31,2024 is being closely examined. The Company has already recorded an impairment loss of 2,443 million yen for
the third quarter of the fiscal year ending March 31, 2024, in light of the decline in profitability of Akemi ElectricPower, Ltd. If any new matters arise that should be disclosed in the future, they will be disclosed promptly.
(Reference) Consolidated earnings forecast for the current fiscal year (announced on November 7, 2023) andconsolidated results for the preceding fiscal year
Consolidated

Consolidated

Consolidated

Profit attributable tonet sales

operating profit

ordinary profit

owners of parent

Million yen

Million yen

Million yen

Million yen

Forecast of the consolidated
results of the period underreview (fiscal year ending

343,000

10,00011,0007,500

334,496

7,175

8,043

6,321

March 31, 2024)
Consolidated results of thepreceding period (fiscal yearended March 31, 2023)

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 20, 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 the translation.

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