Consolidated Basis Results of the Third Quarter for Fiscal 2021
(April 1, 2021 - December 31, 2021)
February 4, 2021
TOPY INDUSTRIES, LIMITED
Stock listing: Tokyo, Nagoya stock exchanges
7231
URL: http://www.topy.co.jp/
Nobuhiko Takamatsu, President and CEO
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: February 10, 2022
Scheduled date for dividend payment:
Preparation of supplementary explanatory materials: No
Holding of quarterly financial results meeting:No
Registered Company name:
Code number:
Representative:
Contact:(Figures of less than ¥1 million have been omitted)
1. Consolidated Financial and Operating Results of the Third Quarter for Fiscal 2021 (April 1, 2021 - December 31, 2021)(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

Third Quarter of Fiscal 2021
Third Quarter of Fiscal 2020
(Note) Comprehensive income:

196,974
161,030%

Million yen

%

22.3
(849)
(20.5)(2,491)
Third Quarter of Fiscal 2020
Third Quarter of Fiscal2020

Basic earnings per share-%

Million yen(672)(1,033)¥2,912 million-%¥111 million -96.7%(1,490)(2,165)%-

Diluted earnings
per share

Yen

Third Quarter of Fiscal 2021
Third Quarter of Fiscal 2020

Million yen

Yen(63.96)(92.24)-(2) Consolidated Financial Results
Total assets

Net assets

Million yen

Third Quarter of Fiscal 2021
Fiscal 2020(For reference) Shareholders’ equity:

Capital adequacy ratio

Million yen

285,366
110,981
264,672
108,385
Third Quarter of Fiscal 2021 ¥109,959 million
Fiscal 2020
¥107,428 million

Net assets per share

%

Yen

38.5
40.6

4,719.09
4,611.46

2. Dividends
Base date

Dividends per share
End of first quarter

Fiscal 2020
Fiscal 2021

End of Third quarter End of third quarterEnd of fiscal year

Full fiscal year

Yen

Yen

Yen

Yen

Yen

-

0.00
0.00

-

20.00

20.00

20.00

20.00

Fiscal 2021 (Forecasts)(Note) Whether changes to the latest dividend forecasts have been made: No

3. Consolidated Financial Forecasts for Fiscal 2021 (April 1, 2021 - March 31, 2022)(Percentage figures are changes from the same period of the previous fiscal year)
Profit attributable toProfit per
Net sales
Operating profit
Ordinary profit
owners of parent
shareMillion yen%

Million yen%

Million yen

Fiscal 2021
266,000
18.2
1,500
1,000
(Note) Whether changes to the latest forecasts for consolidated figures have been made: No%

Million yen

1,500

%

159.1

Yen

64.37

* NOTE(1) Changes in the State of Material Subsidiaries during the Period: No
Newly included: - (Name) Excluded: -(Name) -(2) Adoption of Special Accounting Methods for the Preparation of Quarterly Consolidated Financial Statements: Yes
Note: For details, please refer to “Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements.”(3) Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements(a) Changes in accounting principles accompanying the amendment of accounting standards: Yes(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 stock)
Third Quarter of Fiscal 2021
24,077,510 sharesFiscal 2020(b) Number of treasury stock at the end of the period
Third Quarter of Fiscal 2021
776,421 sharesFiscal 2020(c) Average number of shares issued during the period
Third Quarter of Fiscal 2021
23,298,519 shares
Third Quarter of Fiscal 2020

24,077,510 shares
781,625 shares
23,475,762 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 andcautionary statements in using the earnings forecast, please refer to “Explanation Regarding Future Estimate Information Such as
Consolidated Financial Performance Estimates.”Index of Attached Documents
1. Qualitative Information Regarding Results of the Third Quarter for Fiscal 2021 ...................................................................

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(Changes in Accounting Policies) ....................................................................................................................................

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 4, 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.

- 1 -1. Qualitative Information Regarding Results of the Third Quarter for Fiscal 2021
(1) Explanation Regarding Consolidated Operating Results
During the first nine months of the fiscal year under review, the global economy continued to face a challenging situation,
chiefly due to the impact of new COVID-19 variants. Even so, there were signs of a recovery, especially in the United States,with progress in COVID-19 vaccinations. The Japanese economy also saw signs of improvement in business overall, although
they did not result in a full-scale recovery from the downturn caused by the COVID-19 pandemic. The business environment
surrounding the Group, meanwhile, remained severe, mainly because of rises in the price of steel scrap and that of coal, a fuelfor power generation, and reductions in auto production due to supply shortages of semiconductors, among other factors.
Under these circumstances, the Group decided to consolidate its domestic production facilities of steel wheels for passenger
cars, with a view toward the establishment of an optimal production system that has an appropriate supply capacity to meetdomestic demand. Also, we have steadily implemented various measures in line with our medium-term business plan “Growth& Change 2021,” such as by promoting the development and sales expansion of unique products that meet the needs of ourcustomers and society. In addition, it completed the construction of the advanced metal sorting facility and commenced full-scale
operation to strengthen the steel recycling business. The facility had been under construction since 2020.
The financial results for the first nine months of the fiscal year under review include consolidated net sales of ¥196,974 million(up 22.3% year on year) due to the recovery in demand in the Automotive & Industrial Machinery Components Business and an
improvement in steel sales prices in response to a rise in steel scrap prices. However, given the impact of rising costs due toincreases in the price of steel scrap and that of coal, a fuel for power generation, among other factors, the Group posted an
operating loss of ¥849 million (compared to an operating loss of ¥2,491 million in the same period of the previous year), andan ordinary loss of ¥672 million (compared to an ordinary loss of ¥1,033 million in the same period of the previous year). The
loss attributable to owners of parent was ¥1,490 million (compared to loss attributable to owners of parent of ¥2,165 million in
the same period of the previous year).
The Group has applied Accounting Standards for Revenue Recognition (Accounting Standards Board of Japan (ASBJ)
Statement No. 29 issued on March 31, 2020) since the beginning of the first quarter of the consolidated fiscal year under review.
For details, please refer to 2. Quarterly Consolidated Financial Statements and Important Notes (3) Notes Regarding Quarterly
Consolidated Financial Results (Changes in Accounting Policies).
Performance by Segment(Steel Business)
The steel industry continued to face a challenging situation mainly because prices of steel scrap, a principal raw material ofsteel, and energy continued to rise.
Given these circumstances, the Group worked to improve steel sales prices. Net sales increased to ¥66,129 million (up 23.6％
year on year). However, the Group was unable to pass on increased costs attributable to rises in prices of steel scrap and energy
to steel sales prices, resulting in an operating loss of ¥323 million (compared to an operating profit of ¥944 million in the same
period of the previous year).
(Automotive & Industrial Machinery Components Business)
In the automotive industry, production volume decreased from the level in the same period of the previous year in Japan andthe United States due to the impact of the supply shortage of semiconductors, etc. In the construction machinery industry, demandfor hydraulic shovels expanded particularly in the United States, Europe and Southeast Asia. Demand for mining machinery
remained strong worldwide due to rising resource prices.
Given these conditions, the sales volume of mainly commercial vehicle wheels and parts for the undercarriages of construction
machinery increased. As a result, net sales totaled ¥120,042 million (up 23.0％ year on year) and operating profit stood at¥3,815 million (compared to operating loss of ¥787 million in the same period of the previous year).
(Power Business)
The business environment remained challenging in the power business due to a rise in coal prices, a fuel for power generation.
Given these circumstances, the Group worked on the stable supply of electricity in line with its business plan but was affectedby an increase in cost. As a result, net sales stood at ¥6,348 million (up 15.0％ year on year) and the operating loss was ¥1,463
million (compared to an operating profit of ¥175 million in the same period of the previous year).
(Science Business)
The Group manufactures and sells synthetic mica and crawler robots. Synthetic mica was affected chiefly by weak demandfor cosmetics in Japan, offsetting a recovery in demand for cosmetics overseas. Reflecting this situation, net sales rose 2.3% year
on year, to ¥698 million with an operating loss amounting to ¥163 million (compared to an operating loss of ¥365 million in
the same period of the previous fiscal year).
(Leasing Business)
In the leasing business, operating profit was ¥526 million (up 0.2% year on year).
(Others)
The Group operates a civil engineering and construction business, sports club OSSO, and other businesses. Net sales came to¥3,755 million (up 1.1% year on year) and operating profit was ¥303 million (up 40.9% year on year).

- 2 -(2) Explanation Regarding Financial Position
Total assets at the end of the third quarter of the consolidated fiscal year under review stood at ¥285,366 million, an increaseof ¥20,694 million from the end of the previous consolidated fiscal year. This was mainly due to increases of ¥9,528 million,¥4,957 million and ¥4,251 million in notes and accounts receivable - trade and contract assets (notes and accounts receivable trade at the end of the previous consolidated fiscal year), raw materials and supplies, and merchandise and finished goods,
respectively.
Total liabilities were ¥174,384 million, an increase of ¥18,098 million compared with the end of the previous consolidated
fiscal year. This was caused mainly by increases of ¥6,635 million, ¥6,007 million and ¥5,000 million in electronically recorded
obligations - operating, short-term borrowings and straight bonds payable including the current portion of bonds payable.
Total net assets came to ¥110,981 million, an increase of ¥2,596 million from the end of the previous consolidated fiscal year.
This was mainly due to an increase of ¥2,190 million in foreign currency translation adjustments.
(3) Explanation Regarding Future Estimate Information such as Consolidated Financial Performance Estimates
While the global economy is expected to recover from the downturn in economic activities, the business environment
surrounding the Group is likely to remain difficult going forward, reflecting uncertainties such as restrictions on social andeconomic activities associated with the spread of COVID-19 variants, a rise in geopolitical risks such as the U.S.-China conflict,increases in prices of energy and raw materials, the impact of the supply shortage of semiconductors and other parts on
automotive production in particular, and the globally tight supply of marine container transportation services.
The consolidated financial forecasts for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022) have notbeen changed from those announced on November 5, 2021. This decision has been made based on information available to theGroup as of the date of issuance of this release. The actual results may vary from the forecast due to various factors that willarise in the future.

- 3 -2. Quarterly Consolidated Financial Statements and Important Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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, 2021

24,477
51,10924,157－－60,63820,926
4,902
14,574
6,427△58
122,360

25,1786,206
19,532
7,223△64
142,872

93,281△64,517
28,763
213,046△168,097
44,94915,2792,584△1,461
1,122
6,051
44,073△42,148
1,924
98,091

94,626△65,875
28,751
217,854△171,666
46,187
15,1762,214△1,326888
2,835
41,372△39,225
2,147
95,985

3,890
3,890

3,390
3,390

29,257
206
1,634
386
8,892
△47
40,329142,311
264,672

32,094
208
1,692
386
8,777
△41
43,118142,493285,366

(Millions of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of bonds payable
Lease obligations
Income taxes payable
Provision For Business Structure Reform
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease obligations
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, 2021

27,00913,21523,982
5,300
232
923
－
13,53984,201

29,07819,85029,990
300
151
576
352
13,043
93,34327,00024,793
367
5,736
211

37,00023,959
248
6,684
177

36

23

60

23

398
10,782358
2,339
72,084
156,286

290
10,787345
1,499
81,041
174,384

20,98318,60662,023△1,943
99,66920,98318,60660,237△1,932
97,8959,443
12△2,266
568
7,758
957
108,385
264,672

11,52813△75
597
12,063
1,022
110,981285,366

(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, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodSubsidies for employment adjustment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary 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
Other
Total extraordinary losses
Loss before income taxes
Income taxes
Loss
Profit (loss) attributable to non-controlling interests
Loss attributable to owners of parent- 6 -Nine months ended
December 31, 2021
161,030
141,548
19,482
21,974△2,491

196,974
173,830
23,14323,993
△849

106
657
－

99
724
461

1,283

－

529
258
2,836

92
240
1,618

381
604

358
－

－

705

392
1,378
△1,033

378
1,441
△672

54
19

36
6

－

791

74

834

4
128
－
－
133
△1,092
1,081△2,174△9△2,165

4
166
352
6
529
△367
1,072
△1,43950△1,490(Quarterly Consolidated Statements of Comprehensive Income)(Third Quarter Consolidated Cumulative Accounting Term)(Millions of yen)
Nine months ended
December 31, 2020
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 noncontrolling interests- 7 -Nine months ended
December 31, 2021

△2,174△1,4393,360△5△1,062
33

2,046
1
1,672
28

△39

603

2,285
111

4,352
2,912

200

2,815

△89

97

(3) Notes Regarding Quarterly Consolidated Financial Results(Note Related to Going-Concern Assumption)
None(Note on Significant Changes in the Amount of Shareholders’ Equity)
None(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 third quarter under review, by profit before
income taxes for the third quarter.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Group has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc.
since the beginning of the first quarter of the fiscal year under review and recognizes revenue from goods or services which
the Group promised to provide at an amount expected to be received in exchange for the goods or services at the time whencontrol over the promised goods or services is transferred to a customer.
As a result, for the first nine months of the consolidated fiscal year under review, net sales and cost of sales decreased by¥17,848 million and ¥17,853 million, respectively. The operating loss, ordinary loss and loss before income taxes eachdeclined by ¥4 million. In addition, the balance of retained earnings at the beginning of the period increased by ¥171 million.
Because the Accounting Standard for Revenue Recognition, etc. has been applied, “Notes and accounts receivable - trade,"which was included in "Current assets" in the consolidated balance sheets for the previous fiscal year, began to be included in"Notes, accounts receivable-trade and contract assets" from the first quarter of the consolidated fiscal year under review.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Group has applied "Accounting Standard for Fair Value Measurement" (ASBJ Statement No.30, July 4, 2019), etc.
from the beginning of the first quarter of the consolidated fiscal year under review. In accordance with the transitional treatment
set forth in Article 19 of Accounting Standard for Fair Value Measurement and Article 44-2 of "Accounting Standard for
Financial Instruments" (ASBJ Statement No.10, July 4, 2019), the Group has applied prospectively a new accounting policy
prescribed by Accounting Standard for Fair Value Measurement, etc. This has no effect on the quarterly consolidated financial
statements.

- 8 -