November 5, 2021
Company Name: TOPY INDUSTRIES, LIMITED
Representative: Nobuhiko Takamatsu, President and CEO(Code: 7231 Tokyo and Nagoya Stock Exchange; firstsection)
Contact: Tetsuya Sakai, Operating Officer andGeneral Manager, General Affairs Department(TEL: 03-3493-0777)

Notice Regarding Consolidation of Domestic Passenger Vehicle Steel Wheel Production Bases
Topy Industries, Limited ("the Company") announces that at the Board of Directors meeting held on November
5, the Company has resolved to consolidate the passenger vehicle steel wheel production bases.
1. Overview of the consolidation of domestic production bases
The Topy Group manufactures passenger vehicle steel wheels at two sites in Japan: the Toyokawa Factory ofthe Company (Toyokawa, Aichi Prefecture) and at the Company’s consolidated subsidiary Ring Techs Co., Ltd.
(head office and factory located at Kurashiki, Okayama Prefecture). The Group plans to consolidate the two
production bases into the Toyokawa Factory by June 30, 2022 (Note).
As the production bases are integrated, the Toyokawa Factory will take improvement measures (including areview of the production system, the optimization of production lots, productivity improvement and cost cutting
through investment in automation equipment) to strengthen the earnings base.
(Note) Certain types of products are not included in the scope of consolidation.

2. Reasons for the consolidation of domestic production bases
While demand for automobiles is expected to continue expanding around the world, primarily in emerging
countries, demand for steel wheels in Japan is continuing to decline chiefly due to an increase in the rate ofvehicles using aluminum wheels. As a result, in the passenger vehicle steel wheel market, supply capacity inJapan far exceeds demand.
In this market environment, the Company acquired all shares of Ring Techs in 2018 to strengthen thefoundation of the passenger vehicle steel wheel business and made it a subsidiary of the Company. The twocompanies have since taken steps together to improve profitability and optimize the production system in Japanand overseas, including centralized purchasing, the unification of the sales and design divisions, and thediscontinuation of production at Ota Factory (former location: Ota, Gunma Prefecture) in January 2020 (the landwas sold in August 2021).
The Group will consolidate production bases and reduce the production scale to one base/two lines from threebases/five lines which was the capacity at the time when Ring Techs became a subsidiary. The Group will
optimize the production system to achieve a system that will have a supply capacity that matches domestic
demand.
While consolidating production bases, the Group will take improvement measures to enhance technology
development capabilities and productivity at the Toyokawa Factory of the Company, the mother factory that willplay a central role in the global strategy in the Group's passenger vehicle steel wheel business. The Toyokawa
Factory will strengthen its function to support production bases overseas and continue to provide high-quality
and competitive products in the market.
The Company will solidify the foundation of the Group's passenger vehicle steel wheel business byimplementing these initiatives and seek to achieve sustainable growth and development of the Group.

-1-3. Future prospect
The Company is carefully examining the impact of the consolidation on the consolidated results in the fiscalyear ending March 31, 2022. The Company will promptly disclose any information that should be disclosed.
Following the consolidation of passenger vehicle steel wheel production bases, Ring Techs will primarily
manufacture and sell wheels for agricultural machinery. The Company will take necessary measures for thesurplus staff at Ring Techs that will be generated due to the reduction of the production scale, including transfer
to the Company and other Group companies.

(Reference) Consolidated results forecast for fiscal year under review (disclosed on November 5, 2021) and results
in previous fiscal year
Net sales Operating profit Ordinary profit

Profitattributable toowners of parentBasic earnings
per share

Million yen

Million yen

Million yen

Million yen

Yen

Forecast for fiscal year
ending March 31, 2022

266,000

1,500

1,000

1,500

64.37

Results in fiscal year
ended March 31, 2021

225,121(2,943)

(575)

578

24.70

Note: This document has been translated from the original Japanese version for reference purposes only. In theevent of any discrepancy between this translated document and the original Japanese version, the original shallprevail.
The original disclosure in Japanese was released on November 5, 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 the translation.

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