Consolidated Basis Results of the Fiscal 2024

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

1. Consolidated Operating Results and Financial Position of the Fiscal 2024 (April 1, 2024 - March 31, 2025)

   1. Consolidated Operating Results (Percentage figures are changes from the previous fiscal year)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      Fiscal 2024	300,610	(10.0)	5,300	(49.2)	6,246	(40.3)	6,387	36.3
      Fiscal 2023	333,992	(0.2)	10,440	45.5	10,462	30.1	4,676	(26.0)

      Note: Comprehensive income: Fiscal 2024 ¥(138) million －% Fiscal 2023 ¥21,886 million 145.0%

      	Profit per share	Profit per share after full dilution	Return on equity	Ordinary profit to total assets	Operating profit to net sales
      	Yen	Yen	%	%	%
      Fiscal 2024	281.13	-	4.6	2.2	1.8
      Fiscal 2023	204.88	-	3.6	3.5	3.1

      (For reference) Share of profit or loss of entities accounted for using equity method: Fiscal 2024 ¥760 million

      Fiscal 2023 ¥ (797) million

   2. Consolidated Financial Position

      	Total assets	Net assets	Equity ratio	Net assets per share
      	Million yen	Million yen	%	Yen
      Fiscal 2024	281,751	136,713	48.0	6,133.88
      Fiscal 2023	298,291	140,988	46.8	6,119.46

      (For reference) Shareholders' equity: Fiscal 2024 ¥135,278 million Fiscal 2023 ¥139,682 million

   3. Consolidated Cash Flows

      	Cash flow from operating activities	Cash flow from investing activities	Cash flow from financing activities	Cash and cash equivalents at end of period
      	Million yen	Million yen	Million yen	Million yen
      Fiscal 2024	15,390	(1,974)	(10,828)	26,621
      Fiscal 2023	22,318	(9,403)	(12,578)	23,208

2. Dividends

   	Dividends per share					Total dividends (annual)	Payout ratio (consolidated)	Dividends/ net assets (consolidated)
   	1Q-end	2Q-end	3Q-end	End of FY	Full fiscal year
   	Yen	Yen	Yen	Yen	Yen	Million yen	%	%
   Fiscal 2023	-	30.00	-	73.00	103.00	2,355	50.3	1.8
   Fiscal 2024	-	30.00	-	73.00	103.00	2,300	36.6	1.7
   Fiscal 2025 (Forecasts)	-	40.00	-	90.00	130.00		35.7

3. Consolidated Financial Forecasts for Fiscal 2025 (April 1, 2025- March 31, 2026)

(Percentage figures are changes from the previous fiscal year)

• NOTE

  1. Changes in the State of Material Subsidiaries during the Period: None Newly included: - (Name) - Excluded: - (Name) -

  2. 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

     Note: For details, please refer to "(5) Notes Regarding the Consolidated Financial Statements(Note on changes in accounting policies)" under "3. Consolidated Financial Statements and Important Notes" on page 13 of the attached materials.

  3. Number of Shares Issued (Common shares)

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

        Fiscal 2024 24,077,510 shares Fiscal 2023 24,077,510 shares

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

        Fiscal 2024 2,023,266 shares Fiscal 2023 1,251,586 shares

     3. Average number of shares issued during the period

Fiscal 2024 22,719,191 shares Fiscal 2023 22,825,951 shares

(For reference) Non-Consolidated Results

1. Non-Consolidated Operating Results and Financial Position of the Fiscal 2024 (April 1, 2024 - March 31, 2025)

   1. Non-Consolidated Operating Results (Percentage figures are changes from the previous fiscal year)

      	Net sales		Operating profit		Ordinary profit		Profit
      	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      Fiscal 2024	185,307	(6.0)	3,148	(39.2)	5,919	(25.3)	3,343	388.5
      Fiscal 2023	197,038	(3.5)	5,178	32.9	7,928	22.9	684	(88.8)

      	Profit per share	Profit per share after full dilution
      	Yen	Yen
      Fiscal 2024	147.12	-
      Fiscal 2023	29.98	-

   2. Non-Consolidated Financial Position

      	Total assets	Net assets	Equity ratio	Net assets per share
      	Million yen	Million yen	%	Yen
      Fiscal 2024	206,112	80,182	38.9	3,635.10
      Fiscal 2023	226,613	88,455	39.0	3,874.63

      (For reference) Shareholders' equity: Fiscal 2024 ¥80,182 million Fiscal 2023 ¥88,455 million

2. Non-Consolidated Financial Forecasts for Fiscal 2025 (April 1, 2025 - March 31, 2026)

   (Percentage figures are changes from the previous fiscal year)

   	Net sales		Operating profit		Ordinary profit		Profit		Profit per share
   Full year	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
   	188,000	1.5	2,000	(36.5)	4,100	(30.7)	6,500	94.4	303.15

   • These Consolidated Basic Results are not included in the scope of 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.)

   All future descriptions in this disclosure has been compiled based on information currently available. For assumed conditions underlying the earnings forecast, please refer to "1. Overview of Operating Results" on page 2. These descriptions may differ from actual results and effects on earnings is not limited to this.

   (Obtaining supplementary documents of financial results)

   Supplementary documents will be posted on the Company's website.

   Index of Attached Documents

   1. Overview of Operating Results 2

      1. Overview of Operating Results for the Fiscal Year under Review 2

      2. Overview of Financial Position for the Fiscal Year under Review 3

      3. Future Outlook 4

      4. Basic Profit Allocation Policy, and Dividends for the Current and New Fiscal Year 4

   2. Basic Policy for the Selection of Accounting Standards 4

   3. Consolidated Financial Statements and Important Notes 5

      1. Consolidated Balance Sheets 5

      2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 7

         Consolidated Statements of Income 7

         Consolidated Statements of Comprehensive Income 8

      3. Consolidated Statements of Changes in Net Assets 9

      4. Consolidated Cash Flow Statements 11

      5. Notes Regarding the Consolidated Financial Statements 13

   (Note related to going-concern assumption) 13

   134

   (Note on changes in accounting policies) .................................................................................................................... 13

   (Segment information) 13

   (Information per share) 15

   (Important events after the reporting period) 15

   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 May 9 2025.

   The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

1. Overview of Operating Results

   1. Overview of Operating Results for the Fiscal Year under Review (Operating Results for the Consolidated Fiscal Year under Review)

      A challenging situation continued within the Group business environment for the fiscal year due to sluggish domestic demand

      for steel products, decreased demand for construction machinery on a global level, production halt from the certification issues among domestic car manufacturers and a decrease in automobile production in some overseas regions.

      Under this business environment, we steadily implemented the Medium-term Management Plan "TOPY Active & Challenge 2025." As part of our efforts to rebuild our business foundation, we pursued the optimization of our business portfolio and worked to establish sustainable sales pricing. In addition, in order to implement management that is conscious of cost of capital and stock price, we proceeded with the reduction of cross-shareholdings and conducted a share buyback.

      Net sales for the fiscal year under review were ¥300,610 million (down 10.0% year on year), operating profit was ¥5,300 million (down 49.2% year on year) and ordinary profit was ¥6,246 million (down 40.3% year on year) due mainly to the impact of sluggish domestic demand for steel products and a decrease in sales volumes of undercarriage parts for construction machinery and wheels for passenger vehicles. Despite these factors, profit attributable to owners of parent was ¥6,387 million (up 36.3% year on year) due to gains on sales of investment securities, among other factors.

      Performance by Segment (Steel Business)

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

      Under these conditions, a decline in steel product sales volume due to weak demand and higher energy costs led to Group net sales of ¥102,618 million (down 7.4% year on year) and operating profit of ¥6,355 million (down 34.1% year on year).

      (Automotive & Industrial Machinery Components Business)

      In the automobile industry, production volume decreased from the level in the previous fiscal year in Japan due to the effect from the certification issues among other factors. Overseas, passenger car production volume in the U.S. declined and the share for the Japanese manufacturers in China declined. Automobile production volume also declined in Southeast Asia region. In the construction machinery industry, worldwide demand for hydraulic shovels continued to decline. Furthermore, demand for mining machinery remained stagnant.

      Under the circumstances, despite efforts to establish sustainable sales pricing, the Group net sales were ¥190,745 million (down 5.4% year on year) and operating profit was ¥4,447 million (down 18.1% year on year) due mainly to the drastic decrease in sales volume of undercarriage parts for construction machinery, reduction of sales volume of wheels for passenger vehicles by the effect of certification issues among domestic car manufacturers and the decrease in sales volume at overseas bases beside other factors.

      (Others)

      The Group is involved in the manufacture and sale of synthetic mica, civil engineering and construction, real estate leasing, and the operation of sports club. Due to the impact from the elimination of the Power Generation Business, net sales decreased to ¥7,246 million (down 66.4% year on year), and operating profit was ¥428 million (down 65.1% year on year).

   2. Overview of Financial Position for the Fiscal Year under Review Assets, Liabilities, and Net Assets

      Total assets at the end of the fiscal year under review stood at ¥281,751 million, a decrease of ¥16,540 million from the end of the previous fiscal year. This was mainly due to a decrease of ¥11,831 million in investment securities, a decrease of ¥8,318 million in notes and accounts receivable - trade, and contract assets, and a decrease of ¥3,941 million in property, plant, and equipment.

      Total liabilities were ¥145,038 million, a decrease of ¥12,264 million compared with the end of the previous fiscal year. This was mainly due to a decrease of ¥6,490 million in long-term borrowings, a decrease of ¥5,114 million in electronically recorded obligations - operating, and an increase of ¥5,220 million in short-term borrowings.

      Total net assets amounted to ¥136,713 million, a decrease of ¥4,274 million from the end of the previous fiscal year. This was mainly due to a decrease of ¥7,577 million in valuation difference on available-for-sale securities, an increase of ¥4,030 million in retained earnings, and an increase of ¥3,549 million in foreign currency translation adjustment. As a result, net assets per share were ¥6,133.88, and the equity ratio stood at 48.0%.

      Cash Flows

      Cash and cash equivalents (hereinafter "net cash") in the fiscal year under review increased by ¥3,412 million from the end of the previous fiscal year to ¥26,621 million.

      (Cash flows from operating activities)

      Funds obtained from operating activities stood at ¥15,390 million, a decrease of ¥6,927 million from the previous fiscal year. This was mainly attributable to depreciation at ¥12,199 million, profit before income taxes at ¥8,982 million, and a decrease in trade receivables at ¥8,932 million.

      (Cash flows from investing activities)

      Funds used in investing activities stood at ¥1,974 million, a decrease of ¥7,428 million from the previous fiscal year. This was mainly attributable to purchase of property, plant and equipment at ¥7,902 million, proceeds from sale of investment securities at

      ¥3,484 million, and amount of subsidy received at ¥1,173 million.

      (Cash flows from financing activities)

      Funds used in financing activities stood at ¥10,828 million, a decrease of ¥1,750 million from the previous fiscal year. This

      was mainly attributable to repayments of long-term borrowings of ¥7,555 million, net increase in short-term borrowings at ¥6,069 million, and redemption of bonds at ¥5,000 million.

      (Reference) Cash flow-related indicators

      	Fiscal 2020	Fiscal 2021	Fiscal 2022	Fiscal 2023	Fiscal 2024
      Equity ratio (%)	40.6	39.9	41.1	46.8	48.0
      Equity ratio based on market value (%)	12.3	8.6	15.4	20.7	16.6
      The ratio of interest-bearing debt to operating cash flow (years)	14.1	(15.6)	5.6	3.3	4.2
      Interest coverage ratio (times)	11.1	(11.0)	19.6	28.4	21.1

      Equity ratio: Shareholders' equity / Total assets

      Equity ratio based on market value: Market capitalization / Total assets

      The ratio of interest-bearing debt to operating cash flow: Interest-bearing debt / Cash flows Interest coverage ratio: Cash flows / Interest payments

      (Note 1) All amounts are on a consolidated basis.

      (Note 2) Total market value for shares is calculated on the basis of the number of outstanding shares, excluding treasury shares. (Note 3) Cash flows are cash flows from operating activities.

      (Note 4) Interest-bearing debt is all the debt with interest on the consolidated balance sheet.

   3. Future Outlook

      The future business environment surrounding the Group is expected to remain uncertain, influenced by factors such as trends in domestic demand for steel products and developments in automobile and construction machinery production, including the impact of U.S. trade policy.

      In response to changes in the business environment and recent performance, the Group has decided to revise its Medium-term Management Plan one year ahead of schedule. We will promptly disclose the new Medium-term Management Plan, which will begin in fiscal 2025, as soon as it is finalized.

      The consolidated forecasts for fiscal 2025 include consolidated net sales of ¥302,000 million, operating profit of ¥7,000 million, ordinary profit of ¥7,100 million, and profit attributable to owners of parent of ¥7,800 million.

      Note that while the anticipated increase in costs due to tariffs under U.S. trade policy has been factored in, the potential impact of a decline in demand and a resulting decrease in sales volume has not.

   4. Basic Profit Allocation Policy, and Dividends for the Current and Next Fiscal Year

   With respect to the year-end dividend for the current fiscal year, the Group has set a target payout ratio of 30%-35% of profit attributable to owners of the parent company, excluding one-time gains or losses that do not involve changes in cash and deposits. The planned year-end dividend has been determined with due consideration for maintaining a stable dividend and is expected to be

   ¥73 per share. The interim dividend was ¥30 per share, resulting in an annual dividend of ¥103 per share. Regarding the dividend for the next fiscal year, we plan to pay an annual dividend of ¥130 per share.

2. Basic Policy for the Selection of Accounting Standards

The Group adopts the Japanese accounting standards, taking into account the possibility of comparing terms of consolidated financial statements and performances between the companies.

It will work to adopt the International Financial Reporting Standards as appropriate, considering the situation in both Japan and other countries.

1. Consolidated Financial Statements and Important Notes

1. Consolidated Balance Sheets

   		(Millions of yen)
   As of March 31, 2024		As of March 31, 2025
   Assets
   Current assets
   Cash and deposits	25,014	27,474
   Notes and accounts receivable - trade, and contract assets	70,408	62,090
   Merchandise and finished goods	27,117	27,800
   Work in process	8,005	7,313
   Raw materials and supplies	19,715	19,734
   Other	6,991	10,865
   Allowance for doubtful accounts	(40)	(93)
   Total current assets	157,212	155,185
   Non-current assets
   Property, plant and equipment
   Buildings and structures	97,745	100,081
   Accumulated depreciation	(72,354)	(75,469)
   Buildings and structures, net	25,391	24,611
   Machinery, equipment and vehicles	229,588	233,339
   Accumulated depreciation	(190,739)	(198,138)
   Machinery, equipment and vehicles, net	38,848	35,200
   Land	15,684	15,573
   Leased assets	1,613	1,754
   Accumulated depreciation	(850)	(942)
   Leased assets, net	762	812
   Construction in progress	1,957	2,577
   Other	43,421	43,750
   Accumulated depreciation	(41,509)	(41,908)
   Other, net	1,912	1,841
   Total property, plant and equipment	84,558	80,616
   Intangible assets
   Other	3,400	3,436
   Total intangible assets	3,400	3,436
   Investments and other assets
   Investment securities	42,580	30,748
   Long-term loans receivable	204	219
   Deferred tax assets	613	819
   Retirement benefit asset	529	494
   Other	9,274	10,310
   Allowance for doubtful accounts	(81)	(80)
   Total investments and other assets	53,119	42,512
   Total non-current assets	141,079	126,566
   Total assets	298,291	281,751

   		(Millions of yen)
   As of March	31, 2024 As of March 31, 2025
   Liabilities
   Current liabilities
   Notes and accounts payable - trade	31,494	30,375
   Electronically recorded obligations - operating	20,889	15,775
   Short-term borrowings	21,059	26,280
   Current portion of bonds payable	5,000	5,000
   Lease liabilities	162	228
   Income taxes payable	2,152	2,171
   Other	15,465	16,021
   Total current liabilities	96,223	95,852
   Non-current liabilities
   Bonds payable	30,000	25,000
   Long-term borrowings	18,381	11,891
   Lease liabilities	379	394
   Deferred tax liabilities	5,932	1,088
   Provision for corporate officers' retirement benefits	197	157
   Provision for share awards for directors (and other officers)	51	42
   Provision for retirement benefits for directors (and other officers)	15	19
   Reserve for repairs	225	265
   Retirement benefit liability	4,198	7,240
   Asset retirement obligations	268	1,658
   Other	1,428	1,427
   Total non-current liabilities	61,079	49,186
   Total liabilities	157,303	145,038
   Net assets
   Shareholders' equity
   Share capital	20,983	20,983
   Capital surplus	18,606	18,622
   Retained earnings	69,953	73,984
   Treasury shares	(2,503)	(4,210)
   Total shareholders' equity	107,040	109,379
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	20,545	12,968
   Deferred gains or losses on hedges	1	(9)
   Foreign currency translation adjustment	7,319	10,868
   Remeasurements of defined benefit plans	4,774	2,070
   Total accumulated other comprehensive income	32,641	25,898
   Non-controlling interests	1,306	1,435
   Total net assets	140,988	136,713
   Total liabilities and net assets	298,291	281,751

   (Millions of yen)
   Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025
   Net sales	333,992	300,610
   Cost of sales	288,114	258,181
   Gross profit	45,878	42,429
   Selling, general and administrative expenses	35,438	37,128
   Operating profit	10,440	5,300
   Non-operating income
   Interest income	139	172
   Dividend income	784	956
   Foreign exchange gains	726	-
   Share of profit of entities accounted for using equity method	-	760
   Compensation income	-	513
   Other	505	418
   Total non-operating income	2,156	2,821
   Non-operating expenses
   Interest expenses	833	748
   Foreign exchange losses	-	500
   Share of loss of entities accounted for using equity method	797	-
   Facilities relocation expenses	-	186
   Other	503	439
   Total non-operating expenses	2,134	1,875
   Ordinary profit	10,462	6,246
   Extraordinary income
   Gain on sale of non-current assets	178	231
   Gain on sale of investment securities	20	5,383
   Subsidy income	-	268
   Gain on reversal of foreign currency translation adjustment	270	-
   Total extraordinary income	468	5,883
   Extraordinary losses
   Loss on sale of non-current assets	30	27
   Loss on retirement of non-current assets	279	239
   Impairment losses	5,762	1,554
   Loss on valuation of investment securities	-	18
   Loss on tax purpose reduction entry of non-current assets	-	268
   Loss on withdrawal from business	1,076	-
   Loss on business restructuring	265	747
   Surcharge	-	291
   Total extraordinary losses	7,413	3,147
   Profit before income taxes	3,517	8,982
   Income taxes - current	2,839	3,349
   Income taxes - deferred	(4,140)	(875)
   Total income taxes	(1,301)	2,474
   Profit	4,818	6,508
   Profit attributable to non-controlling interests	142	121
   Profit attributable to owners of parent	4,676	6,387

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

   (Consolidated Statements of Comprehensive Income)

   (Millions of yen)
   Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025
   Profit	4,818	6,508
   Other comprehensive income
   Valuation difference on available-for-sale securities	10,731	(7,675)
   Deferred gains or losses on hedges	6	(10)
   Foreign currency translation adjustment	2,006	3,092
   Remeasurements of defined benefit plans, net of tax	3,838	(2,705)
   Share of other comprehensive income of entities accounted for using equity method	484	652
   Total other comprehensive income	17,067	(6,646)
   Comprehensive income	21,886	(138)
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	21,657	(355)
   Comprehensive income attributable to non-controlling interests	229	217

3. Consolidated Statements of Changes in Net Assets

   Previous consolidated fiscal year (April 1, 2023 - March 31, 2024)

   (Millions of yen)
   	Shareholders' equity
   	Share capital		Capital surplus	Retained earnings		Treasury shares	Total shareholders' equity
   Balance at beginning of period	20,983		18,606	67,518		(2,503)	104,604
   Changes during period
   Dividends of surplus				(2,240)			(2,240)
   Profit attributable to owners of parent				4,676			4,676
   Purchase of treasury shares						(3)	(3)
   Disposal of treasury shares						4	4
   Net changes in items other than shareholders' equity
   Total changes during period	-		-	2,435		0	2,436
   Balance at end of period	20,983		18,606	69,953		(2,503)	107,040
   	Accumulated other comprehensive income					Non-controlling interests	Total net assets
   	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
   Balance at beginning of period	9,693	(4)	5,064	908	15,661	1,159	121,425
   Changes during period
   Dividends of surplus							(2,240)
   Profit attributable to owners of parent							4,676
   Purchase of treasury shares							(3)
   Disposal of treasury shares							4
   Net changes in items other than shareholders' equity	10,852	6	2,255	3,866	16,980	147	17,127
   Total changes during period	10,852	6	2,255	3,866	16,980	147	19,563
   Balance at end of period	20,545	1	7,319	4,774	32,641	1,306	140,988

   Consolidated fiscal year under review (April 1, 2024 - March 31, 2025)

   (Millions of yen)
   	Shareholders' equity
   	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
   Balance at beginning of period	20,983	18,606	69,953	(2,503)	107,040
   Changes during period
   Dividends of surplus			(2,356)		(2,356)
   Profit attributable to owners of parent			6,387		6,387
   Purchase of treasury shares				(1,746)	(1,746)
   Disposal of treasury shares		15		39	54
   Net changes in items other than shareholders' equity
   Total changes during period	-	15	4,030	(1,707)	2,338
   Balance at end of period	20,983	18,622	73,984	(4,210)	109,379

   	Accumulated other comprehensive income					Non-controlling interests	Total net assets
   	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
   Balance at beginning of period	20,545	1	7,319	4,774	32,641	1,306	140,988
   Changes during period
   Dividends of surplus							(2,356)
   Profit attributable to owners of parent							6,387
   Purchase of treasury shares							(1,746)
   Disposal of treasury shares							54
   Net changes in items other than shareholders' equity	(7,577)	(10)	3,549	(2,703)	(6,742)	128	(6,614)
   Total changes during period	(7,577)	(10)	3,549	(2,703)	(6,742)	128	(4,275)
   Balance at end of period	12,968	(9)	10,868	2,070	25,898	1,435	136,713

4. Consolidated Cash Flow Statements

   (Millions of yen)
   Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025
   Cash flows from operating activities
   Profit before income taxes	3,517	8,982
   Depreciation	12,787	12,199
   Impairment losses	5,762	1,554
   Amortization of goodwill	124	124
   Compensation income	-	(513)
   Facilities relocation expenses	-	186
   Subsidy income	-	(268)
   Gain on reversal of foreign currency translation adjustment	(270)	-
   Loss on tax purpose reduction entry of non-current assets	-	268
   Loss on withdrawal from business	1,076	-
   Loss on business restructuring	265	747
   surcharge	-	291
   Increase (decrease) in allowance for doubtful accounts	(0)	52
   Increase (decrease) in provision for corporate officers' retirement benefits	47	(39)
   Increase (decrease) in provision for scheduled repairs	(216)	39
   Increase (decrease) in retirement benefit liability	(273)	(844)
   Interest and dividend income	(923)	(1,128)
   Interest expenses	833	748
   Share of loss (profit) of entities accounted for using equity method	797	(760)
   Loss (gain) on sale of short-term and long-term investment securities	(20)	(5,383)
   Loss (gain) on valuation of short-term and long-term investment securities	-	18
   Gain(loss)on sales and disposal of property,plant and equipment,net	131	35
   Decrease (increase) in trade receivables	1,863	8,932
   Decrease (increase) in inventories	3,621	1,441
   Increase (decrease) in trade payables	(2,482)	(6,632)
   other	(3,049)	(1,070)
   Subtotal	23,591	18,981
   Interest and dividends received	1,039	1,146
   Interest paid	(785)	(728)
   Proceeds from compensation	-	513
   Payments of facilities relocation expenses	-	(15)
   Payments for loss on withdrawal from business	(10)	(695)
   Payments for loss on business restructuring	-	(556)
   Income taxes paid	(1,517)	(3,255)
   Net cash provided by (used in) operating activities	22,318	15,390

   (Millions of yen)
   Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025
   Cash flows from investing activities
   Net decrease (increase) in time deposits	(599)	1,130
   Purchase of property, plant and equipment	(8,561)	(7,902)
   Proceeds from sale of property, plant and equipment	453	690
   Purchase of investment securities	(14)	(38)
   Proceeds from sale of investment securities	100	3,484
   Loan advances	(18)	(43)
   Proceeds from collection of loans receivable	17	31
   Purchase of intangible assets	(777)	(474)
   Subsidies received	-	1,173
   Other, net	(4)	(25)
   Net cash provided by (used in) investing activities	(9,403)	(1,974)
   Cash flows from financing activities
   Net increase (decrease) in short-term borrowings	3,154	6,069
   Proceeds from long-term borrowings	700	-
   Repayments of long-term borrowings	(11,911)	(7,555)
   Proceeds from issuance of bonds	4,963	-
   Redemption of bonds	(7,000)	(5,000)
   Increase (decrease) in deposit payable in cash	30	80
   Repayments of lease liabilities	(195)	(237)
   Purchase of treasury shares	(3)	(1,746)
   Dividends paid	(2,233)	(2,349)
   Dividends paid to non-controlling interests	(82)	(89)
   Net cash provided by (used in) financing activities	(12,578)	(10,828)
   Effect of exchange rate change on cash and cash equivalents	284	825
   Net increase (decrease) in cash and cash equivalents	620	3,412
   Cash and cash equivalents at beginning of period	22,588	23,208
   Cash and cash equivalents at end of period	23,208	26,621

5. Notes Regarding the Consolidated Financial Statements (Note related to going-concern assumption)

   Not applicable.

   (Note on changes in accounting policies)

   (Application of accounting standard for current income taxes, etc.)

   The "Accounting Standard for Current Income Taxes" (ASBJ Statement No. 27, October 28, 2022; "2022 Revised Accounting Standard") has been applied from the beginning of the first quarter of the fiscal year.

   With regard to the revisions concerning the accounting classification of income taxes (taxation on other comprehensive income), these are subject to the provisional treatment set forth in the proviso of paragraph 20-3 of the 2022 Revised Accounting Standard and the provisional treatment set forth in the proviso of paragraph 65-2 (2) of the "Guidance on

   Accounting Standard for Tax Effect Accounting" (ASBJ Guidance No. 28, October 28, 2022; "2022 Revised Guidance"). This change has no impact on the quarterly consolidated financial statements.

   In addition, the Company has adopted the 2022 Revised Guidance for the revisions related to the review of the treatment in consolidated financial statements deferring gains or losses on sales of investments in subsidiaries among consolidated companies for tax purposes, effective from the beginning of the first quarter of the fiscal year. The change in accounting policy has been applied retrospectively, and the quarterly consolidated financial statements of the previous fiscal year and the consolidated financial statements of the previous fiscal year have been prepared on a retrospective basis. This change has no impact on the quarterly consolidated financial statements of the previous fiscal year or the consolidated financial statements of the previous fiscal year.

   (Segment information)

   1. Summary of reportable segments

      The reportable segments of the Company are units constituting the Company that are to be regularly examined by the Board

      of Directors to determine the allocation of management resources and evaluate the business results, as their financial information is available separately from that of others.

      The Company has business divisions by product and service, and each business division develops a comprehensive domestic and overseas strategy for the products and services it offers in conducting its business activities.

      Accordingly, the Company consists of segments by product and service based on business divisions. These two reportable segments are: Steel, Automotive & Industrial Machinery Components.

      The Steel Business produces general section steel, deformed section steel, deformed bar steel and other steel products. The Automotive & Industrial Machinery Component Business produces various wheels for automobiles, industrial vehicles and construction machinery, pressing products, components for construction machinery, industrial fasteners, etc.

      (Changes in reportable segments)

      Effective from regarding the current fiscal year under review, the reportable segment previously listed as "Leasing" is now included in "Others" due to its decreased quantitative importance.

      Effective from regarding the current fiscal year under review, the reportable segment previously listed as "Power Business" is now included in "Others" due to the elimination of the business in the previous consolidated fiscal year.

      The segment information of the previous fiscal year is presented based on the reportable segment classification after the change.

   2. Method of calculating amounts of net sales and profits or losses by reportable segment

      The accounting method for the business segments reported is consistent with the accounting policies applied in the preparation of the consolidated financial statements. In addition, the profits of the reportable segments show operating profits. The internal revenue and transfer between segments are based on the actual market price.

   3. Information regarding amounts of net sales, profits or losses, assets and other items by reportable segment Previous consolidated fiscal year (April 1, 2023 - March 31, 2024)

      (Millions of yen)

      	Reportable segment			Others (Note) 1	Total	Amount of adjustment (Note) 2	Amount recorded in the consolidated financial statements (Note) 3
      	Steel	Automotive & Industrial Machinery Components	Total
      Net sales
      Net sales to outside customers	110,822	201,632	312,455	21,537	333,992	-	333,992
      Internal sales or transfer between segments	21,753	-	21,753	-	21,753	(21,753)	-
      Total	132,576	201,632	334,209	21,537	355,746	(21,753)	333,992
      Segment profit	9,638	5,426	15,065	1,228	16,293	(5,853)	10,440

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

      1. Profits of segment in an amount of a loss of ¥5,853 million are 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.

      2. Segment profit is adjusted with operating profit recorded under the consolidated financial statements.

Consolidated fiscal year under review (April 1, 2024 - March 31, 2025)

(Millions of yen)

(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.

1. Profits of segment in an amount of a loss of ¥5,930 million are 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.

2. Segment profit is adjusted with operating profit recorded under the consolidated financial statements.

(Information per share)

(Notes)

1. Profit per share after full dilution is not stated because there are no dilutive shares.

2. In the calculation of net assets per share, the shares of the Company that are held by the trust related to the stock compensation plan for directors, etc. are included in the treasury shares that are deducted from the total number of shares issued and outstanding at the end of the fiscal year (34 thousand shares for the previous consolidated fiscal year and 45 thousand shares for the consolidated fiscal year under review).

   In addition, also in the calculation of profit per share, the said shares above are included in the treasury shares that are deducted in the calculation of the average number of shares during the fiscal year (35 thousand shares for the previous consolidated fiscal year and 47 thousand shares for the consolidated fiscal year under review).

3. The bases for the calculation of profit per share are as shown below.

(Important events after the reporting period) Not applicable.