Consolidated Basis Results of the Second Quarter for Fiscal 2022
(April 1, 2022 – September 30, 2022)
November 8, 2022
Registered Company name: TOPY INDUSTRIES, LIMITED
Code number:
7231

Stock listing: Tokyo, Nagoya stock exchanges
URL: http://www.topy.co.jp/en/index.html

Representative:

Nobuhiko Takamatsu, Representative Director, President and CEO

Contact:

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:
Preparation of supplementary explanatory materials:

November 11, 2022 Scheduled date for dividend payment: December 6, 2022
Yes

Holding of quarterly financial results meeting:Yes (for institutional investors and analysts)(Figures of less than ¥1 million have been omitted)
1. Consolidated Financial and Operating Results of the Second Quarter for Fiscal 2022 (April 1, 2022 – September 30, 2022)(1) Consolidated Operating Results (Cumulative)

Second Quarter of Fiscal 2022
Second Quarter of Fiscal 2021
(Note) Comprehensive income:(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
Million yen
Million yen
Million yen％％％％
156,109
24.8
1,540
2,794
2,082
125,059
28.4(1,462)(1,588)(1,472)
Second Quarter of Fiscal 2022
¥5,881 million
176.7%
Second Quarter of Fiscal 2021
¥2,125 million-%
Profit per shareafter full dilution

Profit per share
Yen
90.99
(63.21)

Second Quarter of Fiscal 2022
Second Quarter of Fiscal 2021

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

Net assets

Equity ratio

Million yen
Million yen
293,325
118,871
282,195
113,703
Second Quarter of Fiscal 2022
¥117,672 million
Fiscal 2021
¥112,657 million

Net assets per share
％
40.1
39.9

Yen
5,155.17
4,902.25

2. Dividends
Dividends per share
3Q-endYen
Yen
Yen
Fiscal 2021
0.00
Fiscal 2022
20.00
Fiscal 2022 (Forecasts)
Note: Whether changes to the latest dividend forecasts have been made: None
1Q-end2Q-endEnd of FY

Annual

Yen
20.00

Yen
20.00

50.00

70.00

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
Yen％ Million yen％ Million yen％ Million yen％
Full year
352,000
29.8
6,600
7,500
5,000
217.57
Note: Whether changes to the latest forecasts for consolidated figures have been made: None

- 1 -

* NOTE(1) Changes in the State of Material Subsidiaries during the Period: None
Newly included: – (Name) –Excluded: – (Name) –(2) Application 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 Statements 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)
Second Quarter of Fiscal 2022
24,077,510 sharesFiscal 2021(b) Number of treasury shares at the end of the period
Second Quarter of Fiscal 2022
1,251,441 sharesFiscal 2021(c) Average number of shares issued during the period
Second Quarter of Fiscal 2022
22,890,820 shares
Second Quarter of Fiscal 2021

24,077,510 shares
1,096,640 shares
23,297,330 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 results
may vary from the forecast due to various factors that will arise in the future. 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.
(Method for acquiring supplementary briefing material on quarterly financial results)
The Company plans to hold a briefing session for institutional investors and securities analysts. A video of this briefing session
and briefing material will be posted on the Company’s website promptly after the briefing session.

- 2 -Index of Attached Documents
1. Qualitative Information Regarding Results of the Second 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(For the Six-month Period)

8

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

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)

10Note: 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 November 8, 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 Second Quarter for Fiscal 2022
(1) Explanation Regarding Consolidated Operating Results
During the first half of the fiscal year under review, the global economy was unstable due to heightened geopolitical risks,
including the situation in Ukraine, and higher policy interest rates in response to accelerating inflation in the United States andEurope amid the continuing impact of the coronavirus, but overall, there were signs of a gradual recovery. There were signs of a
gradual recovery in the Japanese economy as well, with industrial production and capital investment on an increasing trend amid
the normalization of economic activities. The business environment surrounding TOPY INDUSTRIES, LIMITED (the “Group”),
meanwhile, remained uncertain, as rises in the price of 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 weare steadily 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 basedon the newly formulated Basic Sustainability Policy, various related policies, and materiality (key issues) to promotesustainability management that leverages our strengths to create new value and solve social issues.
In the first half of the current fiscal year, net sales and profit both recovered significantly year on year due to efforts to optimize
sales prices in line with rising costs of raw materials and energy, and to capture winning demand for parts for the undercarriagesof construction machinery and ultra-large wheels for mining trucks, as well as cost improvements through structural reforms andother measures and foreign exchange gains resulting from the yen's depreciation. As a result, net sales were ¥156,109 million(up 24.8% year on year), operating profit was ¥1,540 million (compared to an operating loss of ¥1,462 million in the same periodof the previous fiscal year), ordinary profit was ¥2,794 million (compared to an ordinary loss of ¥1,588 million in the same
period of the previous fiscal year), and profit attributable to owners of parent was ¥2,082 million (compared to a loss attributableto owners of parent of ¥1,472 million in the same period of the previous fiscal year).
Performance by Segment(Steel Business)
In the steel industry, demand for steel materials for construction and manufacturing remained strong. Prices for steel scrap, themain raw material, remained high despite a temporary downturn, while prices for energy and other raw materials also remainedhigh.
Given these circumstances, the Group worked to optimize steel sales prices in response to the costs of steel scrap, energy, andother raw materials and took orders with an emphasis on profitability. As a result, net sales increased to ¥50,144 million (up18.4% year on year), and operating profit increased to ¥2,895 million (compared to an operating loss of ¥38 million in the same
period of the previous year).
(Automotive & Industrial Machinery Components Business)
In the automotive industry, the recovery of automobile production was delayed due to supply chain disruptions caused by the
lockdown in China, in addition to shortages of semiconductors and other components, and domestic production volume was
generally flat year on year. Meanwhile, in the construction machinery industry, demand remained strong in the United States andSoutheast 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, as well as through structural reforms and other measures in addition to steadily winning demand for parts for theundercarriages of construction machinery and ultra-large wheels for mining trucks. As a result, net sales totaled ¥94,653 million(up 24.6% year on year) and operating profit stood at ¥1,733 million (up 18.2% year on year).
(Power Business)
The business environment remained challenging due to continued price hikes in coal, a fuel used for power generation. In thisenvironment, efforts to optimize electricity sales prices failed to keep pace with rising costs, resulting in net sales of ¥8,166
million (up 111.9% year on year) and an operating loss of ¥1,066 million (compared to an operating loss of ¥783 million thesame period of the previous year).
(Business Development Business)
This segment is engaged in the manufacture and sale of synthetic mica for use in cosmetics and other products. In thesynthetic mica business, the Group steadily captured the recovery in demand for cosmetics in Japan and abroad. Reflecting thissituation, net sales rose 22.5% year on year, to ¥522 million with an operating profit amounting to ¥87 million (compared to an
operating loss of ¥162 million in the same period of the previous fiscal year).
(Leasing Business)
In the leasing business, operating profit was ¥355 million (up 1.4% year on year).
(Others)
The Group operates a civil engineering and construction business, sports club OSSO, and other businesses. Net sales came to¥2,623 million (up 5.8% year on year) and operating profit was ¥243 million (up 176.5 year on year).

- 4 -(2) Explanation Regarding Financial Position
Total assets at the end of the second quarter of the consolidated fiscal year under review stood at ¥293,325 million, an increaseof ¥11,129 million from the end of the previous consolidated fiscal year. This was mainly due to increases of ¥4,896 million innotes and accounts receivable trade and contract assets, ¥3,026 million in merchandise and finished goods, and ¥2,086 million
in cash and deposits.
Total liabilities were ¥174,454 million, an increase of ¥5,961 million compared with the end of the previous consolidated fiscal
year. This was caused mainly by increases of ¥7,084 million in long-term borrowings, but decreases of ¥2,100 million in deferred
tax liabilities.
Total net assets came to ¥118,871 million, an increase of ¥5,168 million from the end of the previous consolidated fiscal year.
This was caused mainly by increases of ¥5,055 million in foreign currency translation adjustment.
(3) Explanation Regarding Future Estimate Information such as Consolidated Financial Performance Estimates
While the outlook for the global economy is uncertain, a rise in geopolitical risks, including the prolonged situation in Ukraine,and fluctuations in financial and capital markets amid global monetary tightening among other factors, the moderate recovery ineconomic activity is expected to continue.
As for the business environment surrounding the Group, there are some concerns about persistently high prices of coal, energy,
and other raw materials and the persistence of short supplies of components, including semiconductors. However, the price ofsteel scrap is continued to be expected to remain lower than initial forecasts, and a gradual recovery in global automobile
production is expected. The Group will continue to steadily capture demand and improve costs by optimizing product sales prices
and implementing structural reforms.
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 September 30, 2022

21,037

23,12360,54565,442

27,734
6,336
21,3687,483(86)
144,420

30,761
7,539
22,9786,748(97)
156,495

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
95,33897,341(68,865)
28,476
226,608(179,713)
46,894
15,601
1,544
(966)
578
2,863
42,816(40,531)2,284
96,698

3,440
3,440

3,427
3,427

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

25,483207
692
397
10,004(81)
36,703
136,829
293,325

(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-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 September 30, 2022

33,731
15,55222,807158
891
14,05587,19632,942
17,554
22,687122771
14,30788,38537,00026,228
235
6,190
163

37,00033,312
191
4,090
147

23

11

25

8

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

392
9,164
266
1,483
86,069174,454

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

20,98318,606
63,737(2,502)
100,824

9,990

8,530

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

24
6,748
1,543
16,847
1,199
118,871
293,325

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income(For the Six-month Period)(Millions of yen)Six months ended
September 30, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (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
Gain on reversal of provision incurred from businesscombination
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 -Six months ended
September 30, 2022

125,059
111,164
13,895
15,357(1,462)

156,109
135,494
20,615
19,074
1,540

63
359
220

58
368
926

－

64

204
847

362
1,780

237

339

439

－

296
972
(1,588)

186
525
2,794

36
0

10
55

791

－

828

65

2
104
－
107
(866)
568
(1,434)37(1,472)

3
179
76
258
2,601
465
2,136
53
2,082

Quarterly Consolidated Statements of Comprehensive Income(For the Six-month Period)(Millions of yen)Six months ended
September 30, 2021
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
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests- 9 -Six months ended
September 30, 2022

(1,434)

2,136

1,697
(2)
1,309
19

(1,477)
5
4,355
5

536

855

3,560
2,125

3,744
5,881

2,045

5,690

80

191

(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 Second quarter under review, by profit
before income taxes for the Second quarter- 10 -