Consolidated Basis Results of the Third Quarter for Fiscal 2023
(April 1, 2023 – December 31, 2023)
February 6, 2024
Registered Company name:TOPY INDUSTRIES, LIMITED

Stock listing: Tokyo, Nagoya stock exchanges

Code number:
Representative:

7231
URL: http://www.topy.co.jp/en/index.html
Hiromi Ishii, Representative Director, President and CEO

Contact:

Tetsuya Sakai, Managing Executive Officer and General Manager, General Affairs Department
Telephone: 03-3493-0777 / (Overseas) 81-3-3493-0777

Scheduled date for submission of quarterly report: February 9, 2024

Scheduled date for dividend payment: -Preparation of supplementary quarterly materials: Yes
Holding of quarterly financial results meeting:No(Figures of less than ¥1 million have been omitted)

1. Consolidated Financial and Operating Results of the Third Quarter for Fiscal 2023 (April 1, 2023 - December 31, 2023)(1) Consolidated Operating Results (Cumulative)(Percentage figures are changes from the same period of the previous fiscal year)
Net sales
Third Quarter of Fiscal 2023
Third Quarter of Fiscal 2022
(Note) Comprehensive income:Operating profit

Million yen
256,285
248,801

%
3.0
26.3

Million yen
8,969
5,355

Third Quarter of Fiscal 2023
Third Quarter of Fiscal 2022

Million yen
9,696
6,255

%
55.0
-

Profit attributable toowners of parent
Million yen
%
4,286
(8.1)
4,666
-

13,047 Million yen (29.1%)
10,102 Million yen (246.8%)

Profit per shareafter full dilution

Profit per share
Yen
187.80204.02

Third Quarter of Fiscal 2023
Third Quarter of Fiscal 2022

%
67.5
-

Ordinary profit

Yen-(2) Consolidated Financial Position
Total assets

Net assets

Million yen
309,744292,322

Third Quarter of Fiscal 2023
Fiscal 2022
(For reference) Shareholders’ equity:

Equity ratio

Million yen
132,192
121,425

Net assets per share
%
42.2
41.1

Third Quarter of Fiscal 2023

130,841 Million yen

Fiscal 2022

120,265 Million yen

Yen
5,732.06
5,268.92

2. Dividends
1Q-end2Q-endYen

Fiscal 2022
Fiscal 2023
Fiscal 2023 (Forecasts)-

Dividends per share
3Q-end
Yen
Yen
20.00
30.00
-

End of FY

Annual

Yen
68.00

Yen
88.00

78.00

108.00(Note) Whether changes to the latest dividend forecasts have been made: None
3. Consolidated Financial Forecasts for Fiscal 2023 (April 1, 2023- March 31, 2024)(Percentage figures are changes from the previous fiscal year)
Net sales
Full year

Million yen
343,000

Operating profit% Million yen
2.5
10,000%39.4

Profit attributable toowners of parent% Million yen
%
36.8
7,500
18.6

Ordinary profit
Million yen
11,000(Note) Whether changes to the latest forecasts for consolidated figures have been made: None

Profit per shareYen
328.56

* 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 8 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)
Third Quarter of Fiscal 2023
24,077,510 sharesFiscal 2022(b) Number of treasury shares at the end of the period
Third Quarter of Fiscal 2023
1,251,212 sharesFiscal 2022(c) Average number of shares issued during the period
Third Quarter of Fiscal 2023
22,825,934 shares
Third Quarter of Fiscal 2022

24,077,510 shares
1,252,026 shares
22,871,336 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 3.

Index of Attached Documents
1. Qualitative Information Regarding Results of the Third Quarter for Fiscal 2023 ...............................................................

2(1) Explanation Regarding Consolidated Operating Results ...............................................................................................

2(2) Explanation Regarding Financial Position .....................................................................................................................

3(3) Explanation Regarding Future Estimate Information such as Consolidated Financial Performance Estimates .............

3

2. Quarterly Consolidated Financial Statements and Important Notes ....................................................................................

4(1) Quarterly Consolidated Balance Sheets .........................................................................................................................

4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income .....

6

Quarterly Consolidated Statements of Income ........................................................................................................
Third Quarter Consolidated Cumulative Accounting Term ..................................................................................

6

Quarterly Consolidated Statements of Comprehensive Income ...............................................................................
Third Quarter Consolidated Cumulative Accounting Term .................................................................................

7(3) Notes Regarding Quarterly Consolidated Financial Results ..........................................................................................

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

8(Note on significant changes in the amount of shareholders’ equity) ..........................................................................

8(Application of special accounting methods for presenting quarterly consolidated financial statements) ...................

8

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 6, 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. Qualitative Information Regarding Results of the Third Quarter for Fiscal 2023
(1) Explanation Regarding Consolidated Operating Results
During the first nine months of the fiscal year under review, the global economy experienced an overall recovery, despite
geopolitical risks such as the situation in Ukraine and in the Middle East, unstable market conditions caused by monetary
tightening around the world, and the impact of the stagnant real estate market in China. There was a gradual economy in theJapanese economy, as consumer spending recovered amid the normalization of economic activities . Regarding the businessenvironment surrounding TOPY INDUSTRIES, LIMITED (the “Group”), although the economic slowdown in China and thefluctuations of energy and logistics costs continue to require close monitoring, the impact of shortages in the supply ofsemiconductors and other components has basically disappeared in the domestic automotive industry, and production is on arecovery track.
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 these efforts, we aremoving forward with discussions on business portfolio optimization from the perspective of capital productivity, including
reviews of global sites. In addition, we have formed a project team to advance the optimization of logistics systems within theGroup, in response to the “2024 problem” in the logistics industry.
The financial results for the first nine months of the fiscal year under review include consolidated net sales of ¥256,285 million(up 3.0% year on year), mainly due to the increase in sales volume of aluminum wheels for passenger vehicles in line with therecovery trend in automobile production, the expansion of the price gap between steel scrap prices and selling prices, and efforts
to optimize selling prices. As for profit, operating profit was ¥8,969 million (up 67.5% year on year) and ordinary profit was¥9,696 million (up 55.0% year on year), showing significant improvements. Profit attributable to owners of parent was ¥4,286
million (down 8.1% year on year), due to the booking of impairment loss caused by a decline in profitability 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, albeit on a downward trend.
Given these circumstances, the Group worked to optimize steel sales prices as the price gap with purchase prices of steel scrap,
the raw material for such products, widened, and optimized the product mix with a focus on profit, etc. As a result, net sales
increased to ¥83,018 million (up 5.7% year on year), and operating profit increased to ¥7,679 million (up 27.4% year on year).
(Automotive & Industrial Machinery Components Business)
In the automotive industry, automobile production volume increased year on year in Japan as the impact from the supply
shortage of semiconductors and other parts basically disappeared. By vehicle type, the recovery in passenger vehicles was
remarkable, while the recovery in trucks and other commercial vehicles was delayed. In the construction machinery industry,
while demand for hydraulic excavators was strong in North America, it declined significantly in China and showed signs ofslowing down in other regions. Demand for mining machinery remained strong, but stagnated in some regions.
Under these circumstances, sales of wheels for passenger aluminum vehicles increased and the Group worked to optimize
sales pricing. As a result, net sales increased to ¥157,196 million (up 4.3% year on year), and operating profit increased to ¥4,874
million (up 57.3% year on year).
(Power Business)
Net sales decreased ¥10,447 million (down 29.2% year on year) due to a decrease in electricity sold due to planned shutdowns
for inspections and maintenance for statutory periodic inspections during the first quarter and lower electricity demand thissummer than in the same period of the previous fiscal year. However, operating loss improved and reached ¥432 million(compared with ¥802 million in the same period of the previous fiscal year) due to progress in the optimization of electricity
sales prices and the decrease of the cost of coal, the fuel used to generate electricity.
(Leasing Business)
In the leasing business, operating profit was ¥525 million (down 1.7% year on year).

-2-(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 ¥5,623 million (up 17.7% year on year) and operating profit
was ¥580 million (up 24.7% year on year).
(2) Explanation Regarding Financial Position
Total assets at the end of the third quarter of the consolidated fiscal year under review stood at ¥309,744 million, an increaseof ¥17,421 million from the end of the previous consolidated fiscal year. This was mainly due to increases of ¥10,370 million innotes and accounts receivable trade and contract assets, ¥6,116 million in investment securities, and ¥3,346 million in cash anddeposits.
Total liabilities were ¥177,551 million, an increase of ¥6,654 million compared with the end of the previous consolidated fiscal
year. This was caused mainly by an increase of ¥5,479 million in electronically recorded obligations, an increase of ¥5,000
million in the current portion of bonds, and a decrease of ¥4,127 million in long-term debt.
Total net assets came to ¥132,192 million, an increase of ¥10,767 million from the end of the previous consolidated fiscal year.
This was mainly due to an increase of ¥4,386 million in valuation difference on available-for-sale securities, an increase of¥4,143 million in foreign currency translation adjustments, and an increase of ¥2,045 million in retained earnings.
(3) Explanation Regarding Future Estimate Information such as Consolidated Financial Performance Estimates
Despite continuing expectations of recovery, the outlook for the global economy remains uncertain due to the downside riskof the global monetary tightening, the economic slowdown in China and price increases, as well as the situation in the Middle
East.
While the business environment surrounding the Group is expected to remain uncertain due to factors such as steel scrap andenergy price trends, the declining demand for steel construction materials, the impact of quality problems at Japanese automakers
on production, trends in overseas automobile production, further decline in the demand for hydraulic excavators overseas, wewill continue working to steadily leverage the recovery in the domestic automobile production and optimize selling prices notably
through a response to rising labor costs.
The consolidated financial forecasts for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024) have notbeen changed from those announced on November 7, 2023. Impairment losses in the Power Generation segment were posted
during the first nine months of the fiscal year under review as extraordinary losses, but the full-year forecast for profit attributableto owners of parent remains unchanged due to the recording of deferred tax assets and income tax adjustments due to corporate
reclassification for tax effect accounting. This decision has been made based on information available to the Group as of the dateof issuance of this release. The actual results may vary from the forecast due to various factors that will arise in the future.

-3-

2. Quarterly Consolidated Financial Statements and Important Notes(1) Quarterly 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-4-

As of December 31, 2023

23,74027,086

71,671

82,041

27,2297,849
22,156
5,966(41)
158,573

26,267
7,706
21,6316,600(45)
171,289

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

98,375(72,097)
26,278232,183(190,257)
41,925
15,712
1,741
(884)
857
3,206
45,201(42,958)
2,242
90,223

3,014
3,014

3,164
3,164

27,263
201
643
382
9,661
(81)
38,071
133,748
292,322

33,380205
613
382
10,568(83)
45,066
138,454309,744(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-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-5-

As of December 31, 2023

36,097
18,372
17,305
7,000
122
871
15,52595,29533,24623,851
17,76812,000184
1,961
14,630103,642

30,00029,282
213
3,890
150

30,00025,154
427
5,918
205

11

51

11

14

441
9,894
267
1,438
75,602
170,897265
10,169267
1,435
73,909177,551

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

20,98318,606
69,563(2,502)
106,651

9,693
(4)
5,064
908
15,661
1,159
121,425
292,322

14,080
(2)
9,208
903
24,1891,350
132,192
309,744(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Third Quarter Consolidated Cumulative Accounting Term)(Millions of yen)
Nine months ended
December 31, 2022
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
Other
Total non-operating expenses
Ordinary profit
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
Impairment losses
Business structural reform expenses
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-6-

Nine months ended
December 31, 2023

248,801
214,765
34,03528,6795,355

256,285
220,816
35,46826,499
8,969

89
700
215

80
782
252

292

368

459
1,756

262
1,747

556
301
857
6,255

668
351
1,020
9,696

13
72
85

184
0
184

4
249
－
76
329
6,011
1,244
4,767
101
4,666

27
189
2,443
－
2,660
7,219
2,823
4,395
109
4,286

Quarterly Consolidated Statements of Comprehensive Income(For the Six-month Period)(Millions of yen)
Nine months ended
December 31, 2022
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-7-

Nine months ended
December 31, 2023
4,767

4,395

(1,196)
(31)
5,684
8

4,324
2
3,742
(4)

870

587

5,335
10,102

8,651
13,047

9,844

12,815257

232

(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 third quarter.

- 8 -