March 24, 2020
Company Name: TOPY INDUSTRIES, LIMITED
Representative: Nobuhiko Takamatsu, President and CEO(Code: 7231 Tokyo and Nagoya Stock Exchange; first section)
Contact: Shuichi Tachibana, Operating Officer andGeneral Manager, General Affairs Department(TEL: 03-3493-0777)
Announcement Regarding the Adjustment of the Consolidated Financial Forecasts for Fiscal 2019 and Differences
between Non-Consolidated Financial Forecasts for Fiscal 2019 and Actual Results for Fiscal 2018, as well as
Adjustment of the Dividends Forecasts

Topy Industries Limited hereby gives notice that it is adjusting the consolidated financial forecasts for the fiscal
year ending March 31, 2020 (April 1, 2019 to March 31, 2020) announced on November 1, 2019 as shown below
and also that differences between the non-consolidated financial forecasts for fiscal 2019 and actual results forfiscal 2018 is expected to arise. Topy Industries Limited also announces that it is adjusting its per-share dividend
forecast.

1. Regarding the Adjustment of Consolidated Financial Forecasts for Fiscal 2019
Adjustment of estimated values of the consolidated financial forecasts for the fiscal year ending March 31, 2020
(April 1, 2019 – March 31, 2020)

Net Sales

ProfitOperating profit Ordinary profit attributable toowners ofparent

Basic earnings
per share

Million Yen

Million Yen

Million Yen

Million Yen

Yen

Previous Forecast (A)(Announced November 1,2019)

270,000

6,500

7,000

4,500

191.53

Revised Forecast (B)261,500

2,800

2,600

-3,200-136.20

Difference (B-A)-8,500-3,700-4,400-7,700-3.1%-56.9%-62.9%

286,227

7,505

9,357

Percentage ofIncrease/Decrease (%)(Ref.) Pervious Results(FY ending March 2019)―7,114302.85

Reason for Adjustment
Amid the ongoing global slowdown, factors such as further reduction in production of mining equipment due torising concerns over future demand and sharp decline in hydraulic shovel production in China as a result of thespread of the Covid-19 coronavirus are expected to lead to much lower sales volume than forecast in theautomotive/industrial machinery components business. Similarly, in the steel business, lower sales volume andnarrower metal spreads are expected, reflecting sluggish domestic demand for steel products. Accordingly, netsales, operating profit and ordinary profit are now forecast to be lower than previously estimated.
In addition, a loss on valuation of investment securities (around 1,800 million yen) due to general stock market-1-decline and a reversal of deferred tax assets (around 2,000 million yen) in accordance with accounting standards
for tax effect accounting are expected and a loss attributable to owners of parent of 3,200 million yen is forecast.

2. Regarding the Differences between Non-Consolidated Financial Forecasts for Fiscal 2019 andActual Results for Fiscal 2018
Differences between Non-Consolidated Forecasts for the Fiscal Year Ending March 31, 2020 and Actual Resultsfor Fiscal 2018 (April 1, 2019 – March 31, 2020)
Net Sales

Operating profit Ordinary profit

Basic earnings
per share

ProfitMillion Yen

Million Yen

Million Yen

Million Yen

Yen

Pervious Results (A)(FY ending March 2019)

150,768

1,048

5,566

1,245

53.00

Revised Forecast (B)142,100-900

700-3,500-148.95

Difference (B-A)-8,668-1,948-4,866-4,745

Percentage ofIncrease/Decrease (%)-5.7%――-87.4%

Reason for Differences
Regarding the non-consolidated financial forecasts for fiscal 2019, in the automotive and industrial machineryparts business, sales volume is expected to fall sharply from fiscal 2018 due to the impact of the global slowdown.
In addition, a loss on the valuation of investment securities and a reversal of deferred tax assets are expected andforecasts for fiscal 2019 are net sales of 142,100 million yen, an operating loss of 900 million yen, ordinary profitof 700 million yen and a loss of 3,500 million yen.

3. Regarding the Amendment of Dividends
Dividends per share
End of firstquarterEnd ofsecondquarter

Yen

End of thirdquarterEnd of fiscalyear

Full fiscalyear

Yen

Yen

Yen

―

20.00

60.00

―

0.00

40.00

70.00

90.00

Yen

Previous Forecast (AnnouncedNovember 1, 2019)―

Revised Forecast―

Actual Result(Fiscal Year 2019)
Previous Year Results(FY ending March 31, 2019)

―

40.00

―

―

20.00

―

―

Reasons for Adjustment
Our basic policy regarding profit distribution is to return profits to shareholders in proportion to theconsolidated business results while building up retained earnings for future business development and forstrengthening corporate structure. As an indicator for returns in proportion to the consolidated business results, weaim for a consolidated dividend payout ratio of 30～35%.
In view of factors such as the consolidated financial forecasts for the fiscal year ending March 31, 2020 and theconsolidated payout ratio, we have regrettably decided to suspend the payment of a year-end dividend for thefiscal year ending March 31, 2020.

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