Consolidated Basis Results of the First Quarter for Fiscal 2023
(April 1, 2023 - June 30, 2023)
August 4, 2023
Registered Company name:
Code number:

TOPY INDUSTRIES, LIMITED
7231

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

Representative:
Contact:

Hiromi Ishii, Representative Director, President and CEO
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:
August 10, 2023
Scheduled date for dividend payment:
Preparation of supplementary quarterly materials:

No

Holding of quarterly financial results meeting:No－(Figures of less than ¥1 million have been omitted)
1. Consolidated Financial and Operating Results of the First Quarter for Fiscal 2023 (April 1, 2023 - June 30, 2023)(1) Consolidated Operating Results (Cumulative)(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%
First Quarter of Fiscal 2023
81,522
8.7
1,567
2,358
557.5
1,734
346.4
－
First Quarter of Fiscal 2022
75,000
34.6
(569)
358
388
－
－
－
(Note) Comprehensive income:First Quarter of Fiscal 2023
First Quarter of Fiscal 2022

(140.0%)(7.8%)

Profit per shareafter full dilution

Profit per share
Yen
75.97
16.93

First Quarter of Fiscal 2023
First Quarter of Fiscal 2022

¥5,120 million¥2,134 million

Yen
－
－

(2) Consolidated Financial Position
Total assets

Net assets

Million yen
296,826
292,322First Quarter of Fiscal 2023
Fiscal 2022
(For reference) Shareholders’ equity:

Equity ratio

Million yen
124,990
121,425First Quarter of Fiscal 2023
Fiscal 2022

Net assets per share
%
41.7
41.1

Yen
5,422.30
5,268.92¥123,765 million¥120,265 million

2. Dividends
1Q-end2Q-endYen

Dividends per share
3Q-end
Yen
Yen
20.00
－

Fiscal 2022－
Fiscal 2023－
Fiscal 2023 (Forecasts)－－(Note) Whether changes to the latest dividend forecasts have been made: None

End of FY
Yen
68.00
－

Annual
Yen
88.00
88.00

3. Consolidated Financial Forecasts for Fiscal 2023 (April 1, 2023- March 31, 2024)(Percentage figures are changes from the previous fiscal year)
Profit attributable to
Net sales
Operating profit
Ordinary profit
Profit per shareowners of parent
Million yen% Million yen% Million yen% Million yen%
Yen
Full year
342,000
2.2
9,500
32.4
9,600 19.4
6,500
2.8
284.77(Note) Whether changes to the latest forecasts for consolidated figures have been made: None* 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)
First Quarter of Fiscal 2023
24,077,510 sharesFiscal 2022(b) Number of treasury shares at the end of the period
First Quarter of Fiscal 2023
1,252,174 sharesFiscal 2022(c) Average number of shares issued during the period
First Quarter of Fiscal 2023
22,825,392 sharesFirst Quarter of Fiscal 2022

24,077,510 shares
1,252,026 shares
22,940,753 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
from the 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 First 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 ............................................................................................................
(For the Three-month Period) ..................................................................................................................................

6

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

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 August 4, 2023 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 First Quarter for Fiscal 2023
(1) Explanation Regarding Consolidated Operating Results
During the first three months of the fiscal year under review, the global economy experienced an overall recovery, despite
geopolitical risks from the protraction of the situation in Ukraine and unstable market conditions caused by monetary tighteningaround the world. There was a gradual recovery in the Japanese economy, as consumer spending recovered due to the easing of
behavioral restrictions, and capital investment was strong. Despite the recovering trend in production as impacts fromsemiconductor and other parts shortages in the automotive industry are alleviated, the business environment surrounding TOPY
INDUSTRIES, LIMITED (the “Group”) remained uncertain due to factors such as an economic slump in China, in addition tocost increases for coal, electricity, other raw materials, and logistics.
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 one part of this, we newly
established the Overseas Business Strategy Department, and are proceeding with discussions on initiatives to strengthen alliancesand develop new markets. In addition, we have introduced an internal carbon pricing system, and use it as one of the criteria forenvironmental investment decisions, thereby strengthening our sustainable management base and promoting efforts for therealization of carbon neutrality.
The financial results for the first three months of the fiscal year under review include consolidated net sales of ¥81,522 million(up 8.7% year on year), mainly due to increased automobile wheel sales due to the recovery trend in automobile production. As
for profit, operating profit was ¥1,567 million (compared to an operating loss of ¥569 million in the same period of the previousyear) due to the increase in price difference from the sales price of steel products due to a decline in steel scrap prices, and in
addition to foreign exchange gains due to depreciation of the yen, ordinary profit was ¥2,358 million (up 557.5% year on year),and profit attributable to owners of parent was ¥1,734 million (up 346.4% year on year), showing significant improvements.
Performance by Segment
From the first quarter of the current fiscal year, the reportable segment previously referred to as Business Development has
been included under Other, as its quantitative importance decreased. The following comparisons are comparative analyses
based on figures for the first three months of the previous fiscal year, which have been reclassified to the segmentclassifications after the change.
(Steel Business)
In the steel industry, domestic crude steel production volume decreased year on year due to a decline in demand for steel
materials for construction and manufacturing, which are the main markets. In addition, the price of steel scrap, the main raw
material, declined, even though the prices of energy and other raw materials remained high.
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. As a result, net sales increasedto ¥27,699 million (up 5.0% year on year), and operating profit increased to ¥2,432 million (up 1,119.5% year on year).
(Automotive & Industrial Machinery Components Business)
In the automotive industry, automobile production volume increased year on year in Japan as impacts from the supply shortageof semiconductors and other parts lessened. In the construction machinery industry, while demand for hydraulic excavators
declined significantly in China, demand was firm overall in other regions. Demand for mining machinery remained strong amidrobust demand for resources.
Under these circumstances, sales for automotive wheels increased and the Group worked to optimize sales pricing inaccordance with the cost of raw materials. As a result, net sales increased to ¥49,397 million (up 12.4% year on year), andoperating profit increased to ¥859 million (up 41.5% year on year).
(Power Business)
While the marked rise in the price of coal, which is fuel for power generation, has calmed down, planned outages due toinspections and maintenance for statutory periodic inspections and increased repair costs, in addition to regular annual repairs,
resulted in net sales decreasing to ¥2,663 million (down 13.8% year on year), and an operating loss of ¥761 million (compared
to an operating loss of ¥557 million in the same period of the previous year).
(Leasing Business)
In the leasing business, operating profit was ¥178 million (down 0.3% 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 ¥1,762 million (up 11.9% year on year) and operating profit
was ¥230 million (up 21.1% year on year).
(2) Explanation Regarding Financial Position
Total assets at the end of the first quarter of the consolidated fiscal year under review stood at ¥296,826 million, an increaseof ¥4,504 million from the end of the previous consolidated fiscal year. This was mainly due to an increase of ¥3,576 million in
investment securities, a decrease of ¥756 million in merchandise and finished goods, and an increase of ¥582 million in work inprocess.
Total liabilities were ¥171,835 million, an increase of ¥938 million compared with the end of the previous consolidated fiscal
year. This was caused mainly by a decrease of ¥3,624 million in notes and accounts payable - trade, an increase of ¥1,863 million
in short-term borrowings, an increase of ¥1,427 million in electronically recorded obligations - operating, and an increase of¥1,149 million in deferred tax liabilities.
Total net assets came to ¥124,990 million, an increase of ¥3,565 million from the end of the previous consolidated fiscal year.
This was mainly due to an increase of ¥2,586 million in valuation difference on available-for-sale securities, and an increase of¥684 million in foreign currency translation adjustments.
(3) Explanation Regarding Future Estimate Information such as Consolidated Financial Performance Estimates
Despite expectations for the recovery to continue, the outlook for the global economy is forecast to remain uncertain, due tothe downside risk of the impact of monetary tightening, price increases, and other factors. While the business environment
surrounding the Group is expected to remain uncertain due to factors such as raw materials and energy prices, and the “2024problem” in Japan’s logistics industry, we will continue working to steadily leverage the recovery in automobile production,
optimize sales pricing, and accumulate profits.
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 May 10, 2023. 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.

- 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 June 30, 2023

23,74024,216

71,671

72,11427,2297,849
22,156
5,966(41)
158,573

26,473
8,432
21,9865,700(41)
158,882

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

97,479(70,429)
27,050228,148(184,850)
43,297
15,667
1,671
(802)
869
3,820
43,811(41,595)
2,216
92,921

3,014
3,014

2,908
2,908

27,263
201
643
382
9,661
(81)
38,071
133,748
292,32230,840203
631
382
10,138(81)
42,114
137,944296,826

(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- 5 -As of June 30, 2023

36,097
18,372
17,305
7,000
122
871
15,52595,29532,47319,80019,168
7,000
170
433
16,274
95,32030,00029,282
213
3,890
150

30,00028,657
455
5,039
168

11

55

11

12

441
9,894
267
1,438
75,602
170,897270
10,143267
1,443
76,515
171,835

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

20,98318,606
67,697(2,503)
104,783

9,693

12,280

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

46
5,748
906
18,982
1,225
124,990
296,826

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income(For the Three-month Period)(Millions of yen)Three months ended
June 30, 2022
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
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
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 -Three months ended
June 30, 2023

75,00066,273
8,726
9,295
(569)

81,522
71,276
10,246
8,679
1,567

32
360
595

38
405
505

31

114

145
1,166

81
1,145

150
87
238
358

240
114
354
2,358

7
55
62

165
－
165

－
69
76
145
275
(152)
427
39
388

0
23
－
24
2,499
736
1,762
28
1,734

Quarterly Consolidated Statements of Comprehensive Income(For the Three-month Period)(Millions of yen)Three months ended
June 30, 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 -Three months ended
June 30, 2023
427

1,762

(639)
20
1,900
3

2,579
51
575
(1)

422

153

1,706
2,134

3,358
5,120

2,032

5,055

101

65

(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 first quarter.

- 8 -