Actions Toward Realizing Management Conscious of Capital Cost and Stock Price (Update)

Analysis of Current Performance and Capital Efficiency Targets

TOPY Industries places emphasis on market perspective and is promoting improvements in PBR and ROE based on the new medium-term management plan. ROE for fiscal 2024 is projected at 4.6%, 5.8% for fiscal 2025, aiming to achieve 6.0% or higher by fiscal 2027. The goal for fiscal 2030 is ROE of 8.0% or higher and a positive equity spread. The reduction of strategic shareholdings will also be continuously promoted, with cumulative sales of approximately 6 billion yen planned by Q3 fiscal 2025.

Response Policies and Progress of New Medium-Term Management Plan

Structural reforms, seeding growth businesses, strengthening shareholder returns, and enhancing IR activities are the pillars to improve PBR, with 2025-2027 as the execution period of the new medium-term management plan which has started one year ahead of schedule. Business restructuring domestic and overseas, strengthening high value-added aluminum wheel business, advancing recycling business, and pioneering new markets in growth sectors are being promoted. A capital efficiency-conscious investment plan totaling 69 billion yen is formulated, and stable shareholder returns will be implemented through progressive dividends and share buybacks.