Consolidated Basis Results of the First Half for FY2025

November 5, 2025

Representative: Hiromi Ishii, Representative Director, President and CEO

Contact: Tomoki Oyaizu, Operating Officer and General Manager, General Affairs Department Telephone:03-3493-0141 / (Overseas) 81-3-3493-0141

Scheduled date for submission of semi-annual securities report: November 7, 2025

Scheduled date for dividend payment: December 2, 2025

Preparation of supplementary materials: Yes

Holding of financial results meeting: Yes (for institutional investors and analysts)

(Figures of less than ¥1 million have been omitted)

1. Consolidated financial results for the six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Six months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      September 30, 2025	142,998	(3.7)	3,256	440.6	3,390	289.7	2,483	231.6
      September 30, 2024	148,532	(10.5)	602	(84.9)	870	(82.2)	748	(77.9)

      Note: Comprehensive income	For the six months ended September 30, 2025:	¥	1,767 million	[	-%]
      	For the six months ended September 30, 2024:	¥	(803) million	[	-%]

      	Basic earnings per share	Diluted earnings per share
      Six months ended	Yen	Yen
      September 30, 2025	113.08	-
      September 30, 2024	32.80	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
   As of	Millions of yen	Millions of yen	%	Yen
   September 30, 2025	269,580	135,939	49.9	6,190.78
   March 31, 2025	281,751	136,713	48.0	6,133.88

   Reference: Equity

   As of September 30, 2025:	¥	134,602 million
   As of March 31, 2025:	¥	135,278 million

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended	-	30.00	-	73.00	103.00
   March 31, 2025
   Fiscal year ending	-	40.00
   March 31, 2026
   Fiscal year ending March 31, 2026 (Forecast)			-	90.00	130.00

   Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial result forecasts for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

Note: Revisions to the financial result forecast most recently announced: None

1. Significant changes in the scope of consolidation during the period: None Newly included: -

   Excluded: -

2. Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: Yes

3. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

4. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of September 30, 2025	24,077,510	shares
      As of March 31, 2025	24,077,510	shares

   2. Number of treasury shares at the end of the period

      As of September 30, 2025	2,335,128	shares
      As of March 31, 2025	2,023,266	shares

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

• Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm.

• 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 3.

(Method for acquiring supplementary briefing material on 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.

Index of Attached Documents

1. Overview of Operating Results………………………………………………………………………………………… 2

   1. Overview of Semi-annual Operating Results……………………………………………………………………… 2

   2. Overview of Semi-annual Financial Position ……………………………………………………………………… 3

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

2. Semi-annual Consolidated Financial Statements and Important Notes ……………………………………………… 4

   1. Semi-annual Consolidated Balance Sheets ……………………………………………………………………… 4

   2. Semi-annual Consolidated Statements of Income and Semi-annual Consolidated Statements

      of Comprehensive Income ………… 6

      Semi-annual Consolidated Statements of Income ……………………………………………………………… 6

      Semi-annual Consolidated Statements of Comprehensive Income …………………………………………… 7

   3. Important Notes Regarding Semi-annual Consolidated Financial Results…………………………………………… 8

(Application of special accounting policies for presenting semi-annual consolidated financial statements) ……… 8

(Segment information) ……………………………………………………………………………………………… 8

(Note on significant changes in the amount of shareholders' equity)……………………………………………… 9

(Note related to going-concern assumption)………………………………………………………………………… 9

1. Overview of Operating Results

   1. Overview of Semi-annual Operating Results

      Looking at the Group business environment for the end of the first half of the fiscal year, in the automobile industry, the U.S. and Japan reached an agreement on tariff measures. Domestic automobile production volume remained at the level of the previous year. In the steel industry, domestic demand for steel products remained weak.

      Under this business environment, the Group is steadily implementing the Medium-term Management Plan "TOPY Active & Challenge 2027" that sets out basic policies of improving profitability through structural innovation of existing businesses and sowing seeds for growth businesses that leverage core competencies. As components of this, the Group engaged in actions including a change of the name of a consolidated subsidiary to foster solidarity in the aluminum wheel business, further structural reform in the steel wheel business through transfer of the agricultural machinery wheel business, and capital expenditures aimed at advancing the recycling business.

      Net sales for the end of the first half of the fiscal year were ¥142,998 million (down 3.7% year on year), operating profit was

      ¥3,256 million (up 440.6% year on year), ordinary profit was ¥3,390 million (up 289.7% year on year), and profit attributable to owners of parent was ¥2,483 million (up 231.6% year on year). This was mainly due to factors including structural innovation in the Automotive & Industrial Machinery Components Segment and the formation of sustainable selling prices, despite sluggish demand in the Steel Segment.

      Performance by Segment (Steel Business)

      In the steel industry, domestic demand for steel products remained weak due to factors including construction project delays. Also, prices for steel scrap, a raw material, fell year on year.

      Under these conditions, factors including weak demand and an increase in repair and other costs resulted in Group net sales of ¥45,395 million (down 11.9% year on year) and operating profit of ¥1,496 million (down 46.2% year on year).

      (Automotive & Industrial Machinery Components Business)

      In the automobile industry, domestic production volume remained at the level of the previous fiscal year. Production volume decreased in overseas markets including the U.S. and Southeast Asia, and the share of Japanese manufacturers in China continued to decline. In the construction machinery industry, global demand for hydraulic shovels remained weak. Demand for mining machinery also showed a stagnating trend.

      Under these circumstances, Group net sales were ¥94,254 million (up 0.9% year on year) and operating profit was ¥4,367 million (up 920.3% year on year), mainly due to structural innovation and to progress in the establishment of sustainable sales pricing.

      (Others)

      The Group is involved in the manufacture and sale of synthetic mica, civil engineering and construction, real estate leasing, and the operation of a sports club. Net sales were ¥3,349 million (down 6.2% year on year) and operating profit was ¥411 million (down 8.7% year on year).

   2. Overview of Semi-annual Financial Position

      Total assets at the end of the first half of the consolidated fiscal year under review stood at ¥269,580 million, a decrease of

      ¥12,171 million from the end of the previous consolidated fiscal year. This was mainly due to a decrease of ¥5,337 million in notes and accounts receivable - trade, and contract assets, a decrease of ¥2,469 million in cash and deposits, and a decrease of

      ¥2,210 million in machinery, equipment and vehicles.

      Total liabilities were ¥133,640 million, a decrease of ¥11,397 million compared with the end of the previous fiscal year. This was mainly due to a decrease of ¥5,934 million in short-term borrowings, a decrease of ¥1,943 million in long-term borrowings, and a decrease of ¥1,352 million in notes and accounts payable - trade.

      Total net assets came to ¥135,939 million, a decrease of ¥774 million from the end of the previous consolidated fiscal year. This was mainly due to a decrease of ¥2,253 million in foreign currency translation adjustment, an increase of ¥1,715 million in valuation difference on available-for-sale securities, and an increase of ¥881 million in treasury shares.

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

   The business environment surrounding the Group is expected to remain challenging, influenced by factors including sluggish domestic demand for steel products and trends in steel scrap prices. The impacts of U.S. trade policy on automobile and construction machinery production also continue to bear watching.

   To achieve its full-year earnings forecast, the Group will strive to secure a gap between steel material selling prices and steel scrap prices while advancing the business strategies formulated in the Medium-term Management Plan.

   The consolidated earnings forecasts for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026) have not been changed from those announced on May 9, 2025.

   This decision has been made based on information available to the Group as 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.

2. Semi-annual Consolidated Financial Statements and Important Notes

1. Semi-annual Consolidated Balance Sheets

   (Millions of yen)

   As of March 31, 2025 As of September 30, 2025

   Assets

   Current assets

   Cash and deposits 27,474 25,005

Liabilities

(Millions of yen) As of March 31, 2025 As of September 30, 2025

Current liabilities

Provision for corporate officers' retirement benefits

157 194

Provision for share awards for directors (and other officers)

42

56

1. Semi-annual Consolidated Statements of Income and Semi-annual Consolidated Statements of Comprehensive Income

   Semi-annual Consolidated Statements of Income

   For the six months ended September 30, 2024

   (Millions of yen)

   For the six months ended September 30, 2025

   Net sales	148,532	142,998
   Cost of sales	129,609	121,231
   Gross profit	18,923	21,767
   Selling, general and administrative expenses	18,320	18,510
   Operating profit	602	3,256
   Non-operating income
   Interest income	92	82
   Dividend income Share of profit of entities accounted for using equity	500	525
   method Compensation income	513	-
   Other	188	178
   Total non-operating income	1,374	873
   Non-operating expenses
   Interest expenses	358	354
   Foreign exchange losses	385	191
   Facilities relocation expenses	103	-
   Other	258	193
   Total non-operating expenses	1,106	739
   Ordinary profit	870	3,390
   Extraordinary income
   Gain on sale of non-current assets	248	4
   Gain on sale of investment securities	513	654
   Subsidy income	-	75

   Gain on reversal of foreign currency translation adjustment

   - 101

   Total extraordinary income 761 835

   Extraordinary losses

   Loss on sale of non-current assets	29	7
   Loss on retirement of non-current assets	140	294
   Loss on valuation of investment securities	18	1
   Loss on tax purpose reduction entry of non-current assets	-	75
   Loss on business restructuring	388	-
   Total extraordinary losses	576	378
   Profit before income taxes	1,055	3,848
   Income taxes	242	1,321
   Profit	813	2,526
   Profit attributable to non-controlling interests	64	42
   Profit attributable to owners of parent	748	2,483

   Semi-annual Consolidated Statements of Comprehensive Income

   For the six months ended September 30, 2024

   (Millions of yen)

   For the six months ended September 30, 2025

   Profit	813	2,526
   Other comprehensive income
   Valuation difference on available-for-sale securities	(5,556)	1,663
   Deferred gains or losses on hedges	(23)	6
   Foreign currency translation adjustment	3,484	(1,836)
   Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities	(186) 665	(131) (461)
   accounted for using equity method Total other comprehensive income	(1,616)	(759)
   Comprehensive income	(803)	1,767
   Comprehensive income attributable to
   Comprehensive income attributable to owners of (975) 1,819 parent

   Comprehensive income attributable to non-controlling interests

   171 (51)

2. Important Notes Regarding Semi-annual Consolidated Financial Results

   (Application of special accounting policies for presenting semi-annual consolidated financial statements)

   Tax expenses are calculated by reasonably estimating the effective tax rate reflecting the tax effect to be applied to profit before income taxes for the consolidated fiscal year, including the first half under review, and then multiplying profit before income taxes for the first half under review by such estimated effective tax rate.

   (Segment information)

   I Six months ended September 30, 2024 (April 1, 2024-September 30, 2024)

   1. Information regarding amounts of net sales, profits or losses, assets and other items by reportable segment

      (Millions of yen)

      	Reportable segment			Others (Note) 1	Total	Amount of adjustment (Note) 2	Amount recorded in the semi-annual consolidated financial statements (Note) 3
      	Steel	Automotive & Industrial Machinery Components	Total
      Net sales
      Net sales to outside customers	51,517	93,445	144,963	3,569	148,532	-	148,532
      Internal sales or transfer between segments	9,620	-	9,620	-	9,620	(9,620)	-
      Total	61,137	93,445	154,583	3,569	158,152	(9,620)	148,532
      Segment profit	2,782	428	3,210	451	3,661	(3,059)	602

      (Notes) 1 The category "Others" includes the business segment not included in the reportable segments and includes synthetic mica, indoor and outdoor sign systems, civil engineering and construction, real estate leasing, and the operation of a sports club.

   2. The amount of adjustment to segment profit of negative ¥3,059 million represents common corporate expenses, etc. not allocated to the respective reportable segments. The common corporate expenses are mainly the expenses related to the administrative divisions of the Company that are not attributable to the reportable segments.

   3. Segment profit is adjusted with operating profit recorded under the semi-annual consolidated financial statements.

2. Information regarding impairment losses or goodwill of non-current assets by reportable segment Not applicable.

II Six months ended September 30, 2025 (April 1, 2025-September 30, 2025)

1. Information regarding amounts of net sales, profits or losses, assets and other items by reportable segment

   (Millions of yen)

   	Reportable segment			Others (Note) 1	Total	Amount of adjustment (Note) 2	Amount recorded in the semi-annual consolidated financial statements (Note) 3
   	Steel	Automotive & Industrial Machinery Components	Total
   Net sales
   Net sales to outside customers	45,395	94,254	139,649	3,349	142,998	-	142,998
   Internal sales or transfer between segments	10,117	-	10,117	-	10,117	(10,117)	-
   Total	55,512	94,254	149,767	3,349	153,116	(10,117)	142,998
   Segment profit	1,496	4,367	5,864	411	6,276	(3,019)	3,256

   (Notes) 1. The category "Others" includes the business segment not included in the reportable segments and includes synthetic mica, indoor and outdoor sign systems, civil engineering and construction, real estate leasing, and the operation of a sports club.

2. The amount of adjustment to segment profit of negative ¥3,019 million represents common corporate expenses, etc. not allocated to the respective reportable segments. The common corporate expenses are mainly the expenses related to the administrative divisions of the Company that are not attributable to the reportable segments.

3. Segment profit is adjusted with operating profit recorded under the semi-annual consolidated financial statements.

2. Information regarding impairment losses or goodwill of non-current assets by reportable segment Not applicable.

(Note on significant changes in the amount of shareholders'equity)

Not applicable.

(Note related to going-concern assumption) Not applicable.