Consolidated Basis Results of the Fiscal 2023
(April 1, 2023 – March 31, 2024)
May 10, 2024
TOPY INDUSTRIES, LIMITED
Stock listing: Tokyo, Nagoya stock exchanges
7231
URL: http://www.topy.co.jp/en/index.html
Hiromi Ishii, Representative Director, President and CEO
Tomoki Oyaizu, Managing Executive Officer and General Manager, General Affairs Department
Telephone: 03-3493-0777 / (Overseas) 81-3-3493-0777
Scheduled date for holding of ordinary general meeting of shareholders: June 21, 2024
Scheduled date for dividend payment:
June 4, 2024
Scheduled date for submission of securities report:
June 21, 2024
Preparation of supplementary explanatory materials:
Yes
Holding of financial results meeting:Yes (for analysts and institutional investors)
Registered Company name:
Code number:
Representative:
Contact:(Figures of less than ¥1 million have been omitted)
1. Consolidated Operating Results and Financial Position of the Fiscal 2023 (April 1, 2023 - March 31, 2024)(1) Consolidated Operating Results(Percentage figures are changes from the previous fiscal year)
Profit attributable
Net sales
Operating profit
Ordinary profit
to owners of parent
Million yen%

Million yen%

Fiscal 2023
333,992(0.2)
10,440
45.5
Fiscal 2022
334,496
23.3
7,175(Note) Comprehensive income:Fiscal 2023 ¥21,886 million (145.0%)
Profit per share after
Profit per share
full dilution
Yen

Million yen

%

Yen

%

Net assets

Million yen

Equity ratio

Yen

46.8
41.1
Fiscal 2022 ¥120,265 million

Cash flow frominvesting activities

3.1
2.1

Net assets per share%

Fiscal 2023
298,291
140,988
Fiscal 2022
292,322
121,425(For reference) Shareholders’ equity:
Fiscal 2023 ¥139,682 million

Fiscal 2023
Fiscal 2022

%

3.5
2.8
¥(797) million¥452 million

Million yen(3) Consolidated Cash Flows
Cash flow fromoperating activities%%

Fiscal 2023
204.88
3.6
Fiscal 2022
276.51
5.4(For reference) Share of profit or loss of entities accounted for using equity method: Fiscal 2023
Fiscal 2022
(2) Consolidated Financial Position
Total assets

Million yen

10,46230.1
4,676(26.0)
8,043
6,321
Fiscal 2022 ¥8,932 million (48.3%)
Ordinary profit Operating profit
Return on equity
to total assets
to net sales

Cash flow fromfinancing activities

6,119.46
5,268.92

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

22,31815,058(9,403)(8,360)(12,578)(4,677)

23,20822,588End of FY

Total dividends Payout ratio(annual)(consolidated)
Full fiscal year

2. Dividends
Dividends per share
1Q-end2Q-endYen

Fiscal 2022
Fiscal 2023
Fiscal 2024 (Forecasts)－－－

3Q-endDividends/
net assets(consolidated)

Yen

Yen

Yen

Yen

Million yen

%

%

20.00
30.00
30.00

-

68.00
73.00
73.00

88.00
103.00103.00

2,012
2,355

31.8
50.3
32.7

1.7
1.8

－

3. 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
First half
Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen154,000
317,000

△7.2
△5.1

1,800
8,600

△54.8
△17.6

1,900
9,000

△61.1
△14.0

1,900
7,200

△43.8
54.0

83.24
315.43

(1) Changes in the State of Material Subsidiaries during the Period: None
Newly included: – (Name) – Excluded: – (Name) –(2) 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
(3) Number of Shares Issued (Common shares)(a) Number of shares issued at the end of the period (including treasury shares)
Fiscal 2023
24,077,510 sharesFiscal 2022(b) Number of treasury shares at the end of the period
Fiscal 2023
1,251,586 sharesFiscal 2022(c) Average number of shares issued during the period
Fiscal 2023
22,825,951 sharesFiscal 2022

24,077,510 shares
1,252,026 shares
22,860,777 shares(For reference) Non-Consolidated Results
1. Non-Consolidated Operating Results and Financial Position of the Fiscal 2023 (April 1, 2023 - March 31, 2024)(1) Non-Consolidated Operating Results(Percentage figures are changes from the previous fiscal year)
Net sales
Fiscal 2023
Fiscal 2022

Operating profit

Ordinary profit

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

197,038
204,103

(3.5)
21.9

5,178
3,896

32.9
－

7,928
6,453

22.9
－

684
6,089

(88.8)
80.7

Profit per shareafter full dilution

Profit per share
Yen

Yen

Fiscal 2023

29.98

－

Fiscal 2022

266.35－(2) Non-Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Fiscal 2023
226,613
Fiscal 2022
221,596(For reference) Shareholders’ equity:
Fiscal 2023

88,45579,420¥88,455 million

Net assets per share%

Fiscal 2022

Yen

39.0
35.8
¥79,420 million

3,874.63
3,478.92

2. Non-Consolidated Financial Forecasts for Fiscal 2024 (April 1, 2024 - March 31, 2025)(Percentage figures are changes from the previous fiscal year)
Net sales
Full year

Operating profit

Ordinary profit

ProfitProfit per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

203,000

3.0

3,600

△30.5

5,300

△33.2

5,600

718.3

245.30* These Consolidated Basic Results are not included in the scope of 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.)
All future descriptions in this disclosure has been compiled based on information currently available. For assumed conditions
underlying the earnings forecast, please refer to “1. Overview of Operating Results” on page 2. These descriptions may differ
from actual results and effects on earnings is not limited to this.
(Obtaining supplementary documents of financial results)
Supplementary documents will be posted on the Company’s website.

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

2(1) Overview of Operating Results for the Fiscal Year under Review ....................................................................................

2(2) Overview of Financial Position for the Fiscal Year under Review ....................................................................................

3(3) Future outlook ............................................................................................................................. .......................................

4(4) Basic Profit Allocation Policy, and Dividends for the Current and New Fiscal Year ........................................................

4

2. Basic Policy for the Selection of Accounting Standards .........................................................................................................

4

3. Consolidated Financial Statements and Important Notes ........................................................................................................

5(1) Consolidated Balance Sheets .............................................................................................................................................

5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .........................................

7

Consolidated Statements of Income ...................................................................................................................... .......

7

Consolidated Statements of Comprehensive Income ........................................................................ ...........................

8(3) Consolidated Statements of Changes in Net Assets ...........................................................................................................

9(4) Consolidated Cash Flow Statements ..................................................................................................................................

11(5) Notes Regarding the Consolidated Financial Statements ...................................................................................................

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

13(Segment information) ......................................................................................................................................................

13(Information per share) ........................................................................................................................... ..........................

14(Important events after the reporting period) ........................................................................................................... ........

14

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 May 10, 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 Operating Results for the Fiscal Year under Review
Operating Results for the Consolidated Fiscal Year under Review
During the fiscal year under review, the global economy experienced an overall recovery, despite geopolitical risks such as thesituation in Ukraine and in the Middle East, unstable market conditions caused by monetary tightening around the world, and theimpact of the stagnant real estate market in China. The Japanese economy gradually recovered due to the improvement of personal
consumption amid the normalization of economic activities, but this recovery appeared to be at a standstill from the second half ofthe fiscal year due to rising prices and the production halts in automobile manufacturing caused by quality issues. Regarding thebusiness environment surrounding our Group, the monitoring of the impact of the slowdown of the Chinese economy and thefluctuations of energy and logistics costs remained necessary. In the Japanese automotive industry, the impact of supply shortagesof semiconductors and other components was almost eliminated and production recovered, but the second half of the fiscal year
saw production halts caused by quality issues.
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 this approach, in order to optimize
the business portfolio from the perspective of capital productivity, we ceased operations in the Power Generation Business on
March 31, 2024, due to the degradation of its profitability and growth potential.
The financial results for the fiscal year under review include consolidated net sales of ¥333,992 million, which slightly decreased(down 0.2% year on year). However, operating profit was ¥10,440 million (up 45.5% year on year) and ordinary profit was ¥10,462
million (up 30.1% year on year), showing significant improvements due to the increase in sales volume of aluminum wheels forpassenger vehicles in line with the recovery trend in domestic automobile production, the expansion of the price gap between steel
scrap prices and selling prices, and efforts to optimize selling prices. Profit attributable to owners of parent was ¥4,676 million(down 26.0% year on year), due to the booking of impairment loss caused by a decline in profitability in an American subsidiaryin the Automotive & Industrial Machinery Components Segment and in the Power Generation Segment.
Performance by Segment(Steel Business)
In the steel industry, demand for steel products from the manufacturing industry recovered, but domestic crude steel production
decreased year on year, as demand from the construction industry stagnated. Moreover, steel scrap prices did not change
significantly, while electricity prices remained high.
Given these circumstances, the Group worked to optimize steel sales prices and continued to optimize the product mix with afocus on profit. These initiatives led to the widening of the price gap between steel sales prices and purchase prices of steel scrap,
the main raw material for such products. As a result, net sales increased to ¥110,822 million (up 2.6% year on year), and operating
profit increased to ¥9,638 million (up 19.9% year on year).
(Automotive & Industrial Machinery Components Business)
In the automotive industry, the impact of supply shortages of semiconductors and other components was almost eliminated which
led to a recovery of Japanese automotive production, but the second half of the fiscal year saw production halts caused by quality
issues. With respect to units by model, the production of passenger vehicles increased year on year while the production of passenger
vehicles, including trucks, decreased. In the construction machinery industry, while demand for hydraulic excavators was strong inNorth America, it declined significantly in China and slowed down in other regions. Demand for mining machinery remained
strong, but stagnated in some regions.
Under these circumstances, the sales volume of wheels for passenger aluminum vehicles increased and the Group worked to
optimize sales pricing. As a result, net sales increased to ¥201,632 million (up 1.8% year on year), and operating profit increased
to ¥5,426 million (up 35.1% year on year).
(Power Business)
Net sales decreased ¥14,100 million (down 35.8% year on year) due to a decrease in electricity sold due to planned shutdowns
for inspections and maintenance for statutory periodic inspections and lower electricity demand this summer than in the same
period of the previous fiscal year. However, operating loss improved and reached ¥190 million (compared to an operating loss of¥566 million in the previous year) due to the decrease of the cost of coal, the fuel used to generate electricity.

- 2 -(Leasing Business)
In the leasing business, operating profit was ¥700 million (down 1.6% year on year).
(Others)
The Group is involved in the manufacture and sale of synthetic mica, and operates a civil engineering and construction business,
sports club OSSO, and other businesses. Net sales came to ¥7,436 million (up 15.9% year on year) and operating profit was ¥717
million (up 10.8% year on year).
(2) Overview of Financial Position for the Fiscal Year under Review
Asset, liabilities and net assets
Total assets at the end of the fiscal year under review stood at ¥298,291 million, an increase of ¥5,969 million from the end of
the previous consolidated fiscal year. This was mainly due to an increase of ¥15,316 million in investment securities, a decrease of¥8,104 million in property, plant and equipment and a decrease of ¥2,441 million in raw materials and supplies.
Total liabilities were ¥157,303 million, a decrease of ¥13,594 million compared with the end of the previous consolidated fiscal
year. This was mainly due to a decrease of ¥10,900 million in long-term borrowings and a decrease of ¥5,696 million in retirement
benefit liability.
Total net assets came to ¥140,988 million, an increase of ¥19,563 million from the end of the previous consolidated fiscal year.
This was mainly due to an increase of ¥10,852 million in valuation difference on available-for-sale securities, an increase of ¥3,866
million in remeasurements of defined benefit plans , and an increase of ¥2,435 million in retained earnings. As a result, net assets
per share stood at ¥6,119.46, resulting in an equity ratio of 46.8%.
Cash flows
Cash and cash equivalents (hereinafter "funds") in the fiscal year under review increased by ¥620 million from the end of theprevious consolidated fiscal year to ¥23,208 million at the end of the consolidated fiscal year under review.
(Cash flows from operating activities)
Funds obtained from operating activities stood at ¥22,318 million, an increase of ¥7,259 million from the previous consolidated
fiscal year. This was mainly attributable to depreciation at ¥12,787 million, impairment losses at ¥5,762 million, and profit before
income taxes at ¥3,517 million.
(Cash flows from investment activities)
Funds used in investment activities stood at ¥1,042 million, an increase of ¥9,403 million from the previous consolidated fiscal
year. This was mainly attributable to purchase of property, plant and equipment at ¥8,561 million, purchase of intangible assets at¥777 million and net increase in time deposits at ¥599 million.
(Cash flows from financing activities)
Funds used in financing activities stood at ¥12,578 million, an increase of ¥7,901 million from the previous consolidated fiscal
year. This mainly reflected repayments of long-term borrowings of ¥11,911 million.

- 3 -(Reference) Cash flow-related indicators
Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Fiscal 2023

Equity ratio (%)

40.3

40.6

39.9

41.1

46.8

Equity ratio based on market
value (%)

12.7

12.3

8.6

15.4

20.7

The ratio of interest-bearing
debt to operating cash flow
(years)4.7

14.1(15.6)

5.6

3.3

Interest coverage ratio (times)

25.9

11.1

(11.0)

19.6

28.4

Equity ratio: Shareholders’ equity / Total assets
Equity ratio based on market value: Market capitalization / Total assets
The ratio of interest-bearing debt to operating cash flow: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest payments(Note 1) All amounts are on a consolidated basis.
(Note 2) Total market value for shares is calculated on the basis of the number of outstanding shares, excluding treasury shares.
(Note 3) Cash flows are cash flows from operating activities.
(Note 4) Interest-bearing debt is all the debt with interest on the consolidated balance sheet.
(3) Future Outlook
Despite continuing expectations of recovery, the outlook for the global economy remains uncertain due to the downside risk of
the global monetary tightening, the economic slowdown in China and price increases, as well as the situation in the Middle East.
Although the business environment surrounding the Group is expected to be challenging due to price trends in ferrous scrap,
energy, and other commodities, trends in overseas automobile production, a further decline in demand for hydraulic excavators
overseas, and rising labor and logistics costs, the Group will continue to optimize selling prices sustainably in order to build asustainable business foundation that is less vulnerable to the effects of the business environment. In addition, the Group willcontinue to review its global business bases and consider the course of actions with respect to low-profit businesses to optimize thebusiness portfolio, and will speedily implement the various measures in the Medium-term Management Plan "TOPY Active &Challenge 2025.”
The consolidated forecasts for fiscal 2024 include consolidated net sales of ¥317,000 million, operating profit of ¥8,600 million,
ordinary profit of ¥9,000 million, and profit attributable to owners of parent of ¥7,200 million.
(4) Basic Profit Allocation Policy, and Dividends for the Current and New Fiscal Year
The Company’s basic policy for profit distribution is to return profits to shareholders based on the consolidated business results,
while at the same time increasing retained earnings for the development of future business and the strengthening of corporate
structure. The Company will allocate retained earnings to investment in new business and the development of new technologies
and products that will contribute to long-term, stable business development, thereby enabling it to strengthen its corporate structureand global competitiveness. It will determine the indicators for returning profits to shareholders in accordance with the consolidated
business performance, with a target payout ratio of "30-35% of profit attributable to owners of the parent company, excluding onetime gains or losses that do not involve changes in cash and deposits," while giving due consideration to the continuation of stabledividend payments. Regarding the number of dividends, the Company's basic policy is to pay dividends of surplus twice a year,
comprising an interim dividend and a year-end dividend.
The Company plans to pay a year-end dividend of ¥73 per share for the current fiscal year, with the dividend source being profit
attributable to owners of the parent company, excluding impairment losses and income tax adjustments, which are one-time gains
or losses that do not involve an increase or decrease in cash and deposits. The interim dividend was ¥30 per share, resulting in anannual dividend of ¥103 per share.
Regarding the dividends for the next fiscal year, we plan to pay an annual dividend of ¥103 per share.

2. Basic Policy for the Selection of Accounting Standards
The Group adopts the Japanese accounting standards, taking into account the possibility of comparing terms of consolidated
financial statements and performances between the companies.
It will work to adopt the International Financial Reporting Standards as appropriate, considering the situation in both Japan andother countries.

- 4 -3. Consolidated Financial Statements and Important Notes(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023
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- 5 -As of March 31, 2024

23,74025,014

71,67170,40827,2297,849
22,156
5,966(41)
158,573

27,117
8,005
19,715
6,991(40)
157,212

96,988(69,639)
27,349226,532(182,494)
44,037
15,538
1,314
(767)
547
3,114
43,084(41,008)
2,076
92,662

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
84,558

3,014
3,014

3,400
3,400

27,263
201
643
382
9,661
(81)
38,071
133,748
292,32242,580
204
613
529
9,274
(81)
53,119141,079
298,291(Millions of yen)
As of March 31, 2023
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- 6 -As of March 31, 2024

36,097
18,372
17,305
7,000
122
871
15,52595,29531,494
20,88921,059
5,000
162
2,152
15,46596,22330,00029,282
213
3,890
150

30,00018,381
379
5,932
197

11

51

11

15

441
9,894
267
1,438
75,602
170,897

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

20,98318,606
67,518(2,503)
104,604

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

9,693

20,545

(4)
5,064
908
15,661
1,159
121,425
292,322

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

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended
March 31, 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
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
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on reversal of foreign currency translation
adjustment
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Impairment losses
Loss on withdrawal from business
Loss on business restructuring
Business structural reform expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 7 -Fiscal year ended
March 31, 2024
334,496
289,880
44,61637,4407,175

333,992
288,11445,87835,43810,440

134
701
215

139
784
726

452

－

652
2,155

505
2,156

768

833

－

797

519
1,288
8,043

503
2,134
10,462

13
72

178
20

－

270

85

468

4
330
280
－
－
75
15
707
7,421
1,759
(775)
983
6,437
116
6,321

30
279
5,762
1,076
265
－
－
7,413
3,517
2,839
(4,140)(1,301)
4,818
142
4,676

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended
March 31, 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- 8 -Fiscal year ended
March 31, 2024
6,437

4,818

(343)
(24)
3,101
(636)

10,731
6
2,006
3,838

396

484

2,494
8,932

17,067
21,886

8,741

21,657190

229

(3) Consolidated Statements of Changes in Net Assets
Previous consolidated fiscal year (April 1, 2022 - March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

20,983Retained earnings

18,606

Total shareholders'equityTreasury shares

62,114(2,287)

99,417

Changes during period
Dividends of surplus

(917)

(917)

Profit attributable to owners ofparent

6,321

6,321

Purchase of treasury shares

(228)

(228)

Disposal of treasury shares

11

11

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

－

－

5,403

(216)

5,187

20,98318,606

67,518(2,503)

104,604

Total
Remeasurements accumulatedof definedotherbenefit plans comprehensive
incomeNoncontrollinginterests

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges9,990

19Foreigncurrencytranslation
adjustment
1,692

1,537

13,240Total net assets

1,045

113,703

Changes during period
Dividends of surplus(917)

Profit attributable to owners ofparent

6,321

Purchase of treasury shares(228)

Disposal of treasury shares

11

Net changes in items other thanshareholders' equity

(296)

(24)

3,371

(629)

2,420

113

2,534

Total changes during period

(296)

(24)

3,371

(629)

2,420

113

7,721

Balance at end of period

9,693

(4)

5,064

908

15,661

1,159

121,425- 9 -Consolidated fiscal year under review (April 1, 2023 - March 31, 2024)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

20,983Retained earnings

18,606

Total shareholders'equityTreasury shares

67,518(2,503)

104,604

Changes during period
Dividends of surplus(2,240)(2,240)

Profit attributable to owners ofparent

4,676

4,676

Purchase of treasury shares

(3)

(3)

Disposal of treasury shares

44

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

－

－

2,435

0

2,436

20,98318,606

69,953(2,503)

107,040

Total
Remeasurements accumulatedof definedotherbenefit plans comprehensive
incomeNoncontrollinginterests

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges9,693(4)Foreigncurrencytranslation
adjustment
5,064

908

15,661

Total net assets

1,159

121,425

Changes during period
Dividends of surplus(2,240)

Profit attributable to owners ofparent

4,676

Purchase of treasury shares(3)

Disposal of treasury shares

4

Net changes in items other thanshareholders' equity

10,852

6

2,255

3,866

16,980147

17,127

Total changes during period

10,852

6

2,255

3,866

16,980147

19,563

Balance at end of period

20,545

1

7,319

4,774

32,641

1,306

140,988- 10 -

(4) Consolidated Cash Flow Statements(Millions of yen)
Fiscal year ended
March 31, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Loss on withdrawal from business
Loss on business restructuring
Gain on reversal of foreign currency translation
adjustment
Insurance claim income
Business structural reform expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for corporate officers'
retirement benefits
Increase (decrease) in provision for scheduled repairs
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sale of short-term and long-term
investment securities
Gain(loss)on sales and disposal of property,plant andequipment,net
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
other
SubtotalInterest and dividends received
Interest paid
Payments for loss on withdrawal from business
Proceeds from insurance income
Payments business structural reform expenses
Income taxes paid
Net cash provided by (used in) operating activities- 11 -

Fiscal year ended
March 31, 2024

7,421
13,295
280
124
－
－

3,517
12,787
5,762
124
1,076
265

－

(270)

(79)
75
(60)

(28)
－
(0)

(12)

47

116
(152)
(835)
768

(216)
(273)
(923)
833

(452)

797

(72)

(20)

321

131

(10,351)
(240)
4,679
2,253
17,082
875
(767)
－
286
(489)
(1,928)15,0581,863
3,621(2,482)(3,049)23,562
1,039
(785)
(10)
28
－
(1,517)22,318(Millions of yen)
Fiscal year ended
March 31, 2023
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment securities
Proceeds from sale of investment securities
Loan advances
Proceeds from collection of loans receivable
Purchase of intangible assets
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Increase (decrease) in deposit payable in cash
Repayments of lease liabilities
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 12 -

Fiscal year ended
March 31, 2024

95
(8,130)
9
(13)
208
(12)
13
(456)
(75)
(8,360)(599)(8,561)
453
(14)
100
(18)
17
(777)
(4)
(9,403)(6,079)9,900(7,067)
－
－
30
(235)
(228)
(920)
(76)
(4,677)3,154
700(11,911)
4,963(7,000)
30
(195)
(3)
(2,233)(82)(12,578)

717

284

2,737
19,85022,588620
22,58823,208(5) Notes Regarding the Consolidated Financial Statements(Note related to going-concern assumption)
Not applicable.
(Segment information)
1.

Summary of reportable segments
The reportable segments of the Company are units constituting the Company that are to be regularly examined by the Boardof Directors to determine the allocation of management resources and evaluate the business results, as their financial information
is available separately from that of others.
The Company has business divisions by product and service, and each business division develops a comprehensive domestic
and overseas strategy for the products and services it offers in conducting its business activities.
Accordingly, the Company consists of segments by product and service based on business divisions. These four reportablesegments are: Steel, Automotive & Industrial Machinery Components, Power and Leasing.
The Steel Business produces general section steel, deformed section steel, deformed bar steel and other steel products. The
Automotive & Industrial Machinery Component Business produces various wheels for automobiles, industrial vehicles andconstruction machinery, pressing products, components for construction machinery, industrial fasteners, etc. The Power Businessengages in the wholesale of electricity. The Leasing Business leases real estate.

2.

Method of calculating amounts of net sales, profits or losses, assets and other items by reportable segment
The accounting method for the business segments reported is the same as that stated in “Important basic matters for preparationof the consolidated financial statements.” In addition, the profits of the reportable segments show operating profits. The internal
revenue and transfer between segments are based on the actual market price.

(Changes in reportable segments)
Effective from the fiscal year under review, the reportable segment previously listed as "Business Development" is now
included in "Others" due to its decreased quantitative importance.
The segment information for the previous fiscal year is presented based on the reportable segment classification after thechange.
3.

Information regarding amounts of net sales, profits or losses, assets and other items by reportable segment
Previous consolidated fiscal year (from April 1, 2022 to March 31, 2023)

Reportable segment

Steel

Automotive& Industrial
Machinery
Components

Power

Leasing

Total

Others(Note) 1

Full fiscal
year(Millions of yen)Amountrecorded in
Amount oftheadjustment consolidated(Note) 2
financialstatements(Note) 3

Net sales
Net sales to107,971

198,147

21,957－

328,077

6,418

334,496－

334,496

Internal sales ortransfer between
segments

24,820

－

－

1,138

25,959－25,959(25,959)－

Total

132,792

198,147

21,9571,138

354,0366,418

360,455(25,959)

334,496

Profits of segment

8,038

4,016

(566)

712

12,201648

12,849(5,673)

7,175

outside customers(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, and operation of sports club.
2. Profits of segment in an amount of a loss of ¥5,673 million are common corporate expenses, etc. not allocatedto 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. Profit of segment is adjusted with operating profit recorded under the consolidated financial statements.

- 13 -

Consolidated fiscal year under review (from April 1, 2023 to March 31, 2024)(Millions of yen)
Reportable segment

Steel

Automotive& Industrial
Machinery
Components

Power

Leasing

Total

Others(Note) 1

Full fiscal
year

Amountrecorded in
Amount oftheadjustment consolidated(Note) 2
financialstatements(Note) 3

Net sales
Net sales to110,822

201,632

14,100－326,555

7,436

333,992－

333,992

Internal sales ortransfer between
segments

21,753

－

－

1,138

22,892－

22,892(22,892)－

Total

132,576

201,632

14,1001,138

349,4487,436

356,885(22,892)

333,992

Profits of segment

9,638

5,426

(190)

700

15,575717

16,293(5,853)

10,440outside customers(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, and operation of sports club.
2. Profits of segment in an amount of a loss of ¥5,853 million are common corporate expenses, etc. not allocatedto 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. Profit of segment is adjusted with operating profit recorded under the consolidated financial statements.
(Information per share)Previous consolidated fiscal year (from Consolidated fiscal year under review
April 1, 2022 to March 31, 2023)(from April 1, 2023 to March 31, 2024)
Net assets per share
Profit per share

5,268.92 yen

6,119.46 yen

276.51 yen

204.88 yen(Notes)1. Profit per share after full dilution is not stated because there are no dilutive shares.
2. In the calculation of net assets per share, the shares of the Company that are held by the trust related to the stock compensation planfor directors, etc. are included in the treasury shares that are deducted from the total number of shares issued and outstanding at theend of the fiscal year (36 thousand shares for the previous consolidated fiscal year and 34 thousand shares for the consolidated fiscal
year under review).
In addition, also in the calculation of profit (loss) per share, the said shares above are included in the treasury shares that are deductedin the calculation of the average number of shares during the fiscal year (38 thousand shares for the previous consolidated fiscal year
and 35 thousand shares for the consolidated fiscal year under review).
3. The bases for the calculation of profit (loss) per share are as shown below.
Previous consolidated fiscal year (from Consolidated fiscal year under review
April 1, 2022 to March 31, 2023)(from April 1, 2023 to March 31, 2024)
Profit attributable to owners of parent(million yen)Amount not attributable to common shareholders(million yen)
Profit attributable to owners of parent in relation
to common shares (million yen)
Average number of shares during the fiscal year
(thousand shares)(Important events after the reporting period)
Not applicable.

- 14 -

6,321

4,676

－

－

6,321

4,676

22,86022,825