Consolidated Basis Results of the Third Quarter for FY2025

February 6, 2026

Company name: TOPY INDUSTRIES, LIMITED

Listing: Tokyo Stock Exchange, Nagoya Stock Exchange Securities code: 7231

URL: https://www.topy.co.jp/

Representative: Hiromi Ishii, Representative Director, President and CEO

Inquiries: Tomoki Oyaizu, Operating Officer and General Manager, General Affairs Department Telephone: +81-3-3493-0141

Scheduled date to commence dividend payments: -Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the nine months ended December 31, 2025 (from April 1, 2025 to December 31, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Nine months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      December 31, 2025	219,812	(1.4)	5,912	99.1	6,656	75.2	7,694	106.7
      December 31, 2024	223,028	(13.0)	2,970	(66.9)	3,798	(60.8)	3,723	(13.1)

      Note: Comprehensive income	For the nine months ended December 31, 2025:	¥	7,948 million	[	622.1%]
      	For the nine months ended December 31, 2024:	¥	1,100 million	[	(91.6) %]

      	Basic earnings per share	Diluted earnings per share
      Nine months ended	Yen	Yen
      December 31, 2025	351.76	-
      December 31, 2024	163.02	-

   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
   December 31, 2025	277,853	140,890	50.2	6,453.72
   March 31, 2025	281,751	136,713	48.0	6,133.88

   Reference: Equity

   As of December 31, 2025:	¥	139,498 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.)

1. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes

2. 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

3. Number of issued shares (common shares)

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

      As of December 31, 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 December 31, 2025	2,462,290	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)

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None

• 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.

Index of Attached Documents

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

   1. Overview of Quarterly Operating Results ........................................................................................................................ 2

   2. Overview of Quarterly Financial Position ........................................................................................................................ 3

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

2. Quarterly Consolidated Financial Statements and Primary Notes ........................................................................................ . 4

   1. Quarterly Consolidated Balance Sheet .................................................................................... ......................................... 4

   2. Quarterly Consolidated Statements of Income and Comprehensive Income .................................................................. 6

      Quarterly Consolidated Statement of Income ............................................................................................................ 6

      (For the Nine-month Period) .................................................................................................................................. 6

      Quarterly Consolidated Statements of Comprehensive Income 7

      (For the Nine-month Period) .................................................................................................................................. 7

   3. Important Notes on Quarterly Consolidated Financial Results ........................................................................................ 8

(Note on application of special accounting policies for presenting Quarterly consolidated financial statements) ....... 8

(Note on Segment information) ............................................................................................................................. ........ 8

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

(Note on going-concern assumption) ............................................................................................................................. 9

(Note to Quarterly Consolidated Cash Flow Statements) .............................................................................................. 9

1. Overview of Operating Results

1. Overview of Quarterly Operating Results

   Looking at the Group business environment for the end of the first nine months of the fiscal year, domestic automobile production volume remained at the level of the previous year although the automobile industry has been affected by U.S. trade policy. 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 Company showcased newly-developed wheels featuring proprietary technologies at the Japan Mobility Show 2025. The Group will continue to advance the development of high-value-added products and market expansion. Also, in order to implement management that is conscious of cost of capital and stock price, the Group is proceeding with the reduction of cross-shareholdings while advancing flexible share buybacks and other related initiatives.

   Net sales for the end of the first nine months of the fiscal year were ¥219,812 million (down 1.4% year on year), operating profit was ¥5,912 million (up 99.1% year on year), ordinary profit was ¥6,656 million (up 75.2% year on year), and profit attributable to owners of parent was ¥7,694 million (up 106.7% 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, partly due to construction project delays

   resulting from a labor shortage among other factors. Also, prices for steel scrap, a raw material, started to rise in the nine months of the fiscal year, due to factors such as the weaker yen.

   Under these conditions, a decline in selling prices due to weak demand, along with lower sales volume and increased repair work and other costs resulted in Group net sales of ¥66,626 million (down 13.4% year on year) and operating profit of ¥1,931 million (down 57.7% 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 ¥148,112 million (up 5.2% year on year) and operating profit was ¥7,927 million (up 251.8% 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 ¥5,073 million (down 6.0% year on year) and operating profit was ¥659 million (down 6.2% year on year).

2. Overview of Quarterly Financial Position

   Total assets at the end of the nine months of the consolidated fiscal year under review stood at ¥277,853 million, a decrease of ¥3,898 million from the end of the previous consolidated fiscal year. This was mainly due to a decrease of

   ¥2,262 million in machinery, equipment and vehicles, an increase of ¥1,778 million in cash and deposits, and a decrease of ¥1,012 million in notes and accounts receivable - trade, and contract assets.

   Total liabilities were ¥136,963 million, a decrease of ¥8,075 million compared with the end of the previous consolidated fiscal year. This was mainly due to a decrease of ¥7,000 million in bonds payable, an increase of ¥6,357 million in electronically recorded obligations - operating, and a decrease of ¥5,782 million in short-term borrowings. Total net assets came to ¥140,890 million, an increase of ¥4,177 million from the end of the previous consolidated fiscal year. This was mainly due to an increase of ¥5,208 million in retained earnings, an increase of ¥1,240 million in

   treasury shares and an increase of ¥1,166 million in valuation difference on available-for-sale securities.

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.

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 cost reduction and the formation of sustainable selling prices across all segments. 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.

1. Quarterly Consolidated Financial Statements and Primary Notes

   Quarterly Consolidated Balance Sheet

   (Millions of yen)

   As of March 31, 2025 As of December 31, 2025

   Assets

   Current assets

   Cash and deposits 27,474 29,253

(Millions of yen) As of March 31, 2025 As of December 31, 2025

Liabilities

Current liabilities

Provision for share awards for directors (and other officers)

42

56

Provision for corporate officers' retirement benefits

157 212

1. Quarterly Consolidated Statements of Income and Comprehensive Income

   Quarterly Consolidated Statement of Income (For the Nine-Month Period)
   		(Millions of yen)
   	For the nine months	For the nine months
   	ended December 31, 2024	ended December 31, 2025
   Net sales	223,028	219,812
   Cost of sales	192,506	185,539
   Gross profit	30,521	34,272
   Selling, general and administrative expenses	27,551	28,359
   Operating profit	2,970	5,912
   Non-operating income
   Interest income	127	122
   Dividend income	954	912
   Foreign exchange gains	-	37
   Share of profit of entities accounted for using equity 118 231
   method
   Compensation income	513	-
   Other	257	281
   Total non-operating income	1,971	1,585
   Non-operating expenses
   Interest expenses	547	536
   Foreign exchange losses	148	-
   Facilities relocation expenses	106	-
   Other	340	305
   Total non-operating expenses	1,142	841
   Ordinary profit	3,798	6,656
   Extraordinary income
   Gain on sale of non-current assets	219	18
   Gain on sale of investment securities	3,011	4,643
   Subsidy income	79	140
   Gain on reversal of foreign currency translation - 101 adjustment
   Total extraordinary income	3,310	4,903
   Extraordinary losses
   Loss on sale of non-current assets	25	7
   Loss on retirement of non-current assets	168	317
   Impairment losses	15	-
   Loss on valuation of investment securities	18	1
   Loss on tax purpose reduction entry of non-current assets	79	140
   Loss on business restructuring	740	-
   Provision for surcharge	285	-
   Total extraordinary losses	1,332	466
   Profit before income taxes	5,776	11,093
   Income taxes	1,968	3,333
   Profit	3,808	7,760
   Profit attributable to non-controlling interests	85	66
   Profit attributable to owners of parent	3,723	7,694

   Quarterly Consolidated Statement of Comprehensive Income

   (For the Nine-Month Period)
   		(Millions of yen)
   	For the nine months ended December 31, 2024	For the nine months ended December 31, 2025
   Profit	3,808	7,760
   Other comprehensive income
   Valuation difference on available-for-sale securities	(4,004)	1,049
   Deferred gains or losses on hedges	7	11
   Foreign currency translation adjustment	1,324	(510)
   Remeasurements of defined benefit plans, net of tax	(278)	(182)
   Share of other comprehensive income of entities accounted for using equity method	243	(178)
   Total other comprehensive income	(2,707)	188
   Comprehensive income	1,100	7,948
   Comprehensive income attributable to
   Comprehensive income attributable to owners of 983 7,945 parent

   Comprehensive income attributable to non-controlling interests

   117 3

2. Important Notes on Quarterly Consolidated Financial Results

   (Note on application of special accounting policies for presenting quarterly consolidated financial statements) (Calculation of tax expenses)

   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 third quarter under review, and then multiplying profit before income taxes for the third quarter under review by such estimated effective tax rate.

   (Note on segment information)

   I Nine months ended December 31, 2024 (April 1, 2024 - December 31, 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 quarterly consolidated financial statements (Note) 3
      	Steel	Automotive & Industrial Machinery Components	Total
      Net sales
      Net sales to outside customers	76,893	140,737	217,630	5,397	223,028	-	223,028
      Internal sales or transfer between segments	13,790	-	13,790	-	13,790	(13,790)	-
      Total	90,683	140,737	231,420	5,397	236,818	(13,790)	223,028
      Segment profit	4,563	2,253	6,816	703	7,520	(4,549)	2,970

      (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. Profits of segment in an amount of a loss of ¥4,549 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.

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

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

II Nine months ended December 31, 2024 (April 1, 2024 - December 31, 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 quarterly consolidated financial statements (Note) 3
   	Steel	Automotive & Industrial Machinery Components	Total
   Net sales
   Net sales to outside customers	66,626	148,112	214,738	5,073	219,812	-	219,812
   Internal sales or transfer between segments	14,747	-	14,747	-	14,747	(14,747)	-
   Total	81,374	148,112	229,486	5,073	234,559	(14,747)	219,812
   Segment profit	1,931	7,927	9,858	659	10,518	(4,605)	5,912

   (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. Profits of segment in an amount of a loss of ¥4,605 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.

3. Segment profit is adjusted with operating profit recorded under the quarterly 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 on going-concern assumption) Not applicable.

(Note to Quarterly Consolidated Cash Flow Statements)

Cash flow calculation for the consolidated financial statement regarding the end of third quarter of the fiscal year under

review has not been prepared. Depreciation (including depreciation fees of intangible assets without goodwill) and amortization of goodwill regarding the end of third quarter of the fiscal year under review are as follows:

Nine months ended December 31, 2024 Nine months ended December 31, 2025