Daido Metal : Consolidated Financial Results for the Nine Months Ended December 31,2021

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

		Consolidated Financial Results
	for the Nine Months Ended December 31, 2021
		[Japanese GAAP]
		February 10, 2022
Company name:	Daido Metal Co., Ltd.
Stock exchange listing: Tokyo, Nagoya
Code number:	7245
URL:	https://www.daidometal.com/
Representative:	Seigo Hanji	Chairman and Chief Executive Officer
Contact:	Hiroki Iwakura	Executive Officer and Head of Corporate Planning Division
Phone:	[phone]

Scheduled date of filing quarterly securities report:

February 10, 2022

Scheduled date of commencing dividend payments:

-

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session:

No

(Fractional amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 1, 2021 to December 31, 2021)

(1) Consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Nine months ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

December 31, 2021

76,073

28.6

4,079

－

3,950

－

1,941

－

December 31, 2020

59,160

(20.9)

(1,608)

－

(2,064)

－

(2,282)

－

(Note) Comprehensive income:	Nine months ended December 31, 2021:
	Nine months ended December 31, 2020:

¥	3,184 million	[	－ %]
¥	(3,491) million	[	－%]

		Basic earnings		Diluted earnings per
		per share		share
Nine months ended		Yen			Yen
December 31, 2021		41.68			－
December 31, 2020		(49.31)			－
(2) Consolidated Financial Position
		Total assets		Net assets	Capital adequacy ratio
As of		Million yen		Million yen			%
December 31, 2021		161,810			66,433			36.1
March 31, 2021		155,176			64,538			36.3
(Reference) Net assets less non-controlling interests: As of	December 31, 2021:	58,448	million
		As of	March 31, 2021:		56,388	million

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2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2021

－

10.00

－

10.00

20.00

Fiscal year ending March 31, 2022

－

10.00

－

Fiscal year ending March 31, 2022

15.00

25.00

(Forecast)

(Note) Revision of the forecast for dividends announced most recently:

No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 1, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

owners of parent

per share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Full year

100,000

18.0

4,900

272.4

4,850

454.8

2,200

－

47.22

(Note) Revision of the financial results forecast announced most recently:

Yes

* Notes:

(1) Changes in significant subsidiaries during the nine months ended December 31, 2021

(changes in specified subsidiaries resulting in changes in scope of consolidation):

No

New

-

(Company name:

)

Exclusion:

-

(Company name:

)

(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:

No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes

2)	Changes in accounting policies other than 1) above:	No
3)	Changes in accounting estimates:	No
4)	Retrospective restatement:	No

For details, please refer to page 10, "(4) Notes to Quarterly Consolidated Financial Statements, Changes in Accounting Policy"

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

December 31, 2021:	47,520,253	shares
March 31, 2021:	47,520,253	shares
2) Total number of treasury shares at the end of the period:
December 31, 2021:	785,014	shares
March 31, 2021:	1,036,793	shares
3) Average number of shares during the period:
Nine months ended December 31, 2021:	46,588,227	shares
Nine months ended December 31, 2020:	46,279,105 shares

Note: The Company introduced an E-Ship®Trust-Type Employee Stock Purchase Incentive Plan and a performance-linked stock- based remuneration for Directors and Executive Officers. For the calculation of total number of treasury shares at the end of the period and average number of shares during the period, Company shares held in the trusts are included in treasury shares to be deducted.

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• Numbers in parentheses denote negative numbers.
• This financial result is not required to be reviewed by certificated public accountants or audit firm.
• Explanation of appropriate use of earnings projections, other explanatory notes

Future prospects are prepared as information purpose only, based on the information available to us at this moment, and are under certain condition which we assumed reasonable. We will not guarantee the realization of such prospects and actual performance fluctuates due to various factors.

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1. Quarterly Consolidated Financial Statements

1. Quarterly Consolidated Balance Sheets

				(Million yen)
			As of March 31,2021	As of December 31,2021
Assets
	Current assets
		Cash and deposits	22,007	22,270
		Notes and accounts receivable - trade	23,069	24,356
		Electronically recorded monetary claims -	2,393	3,256
		operating
		Merchandise and finished goods	10,821	13,783
		Work in process	8,380	9,810
		Raw materials and supplies	6,326	7,403
		Other	2,510	2,120
		Allowance for doubtful accounts	(267)	(120)
		Total current assets	75,242	82,879
	Non-current assets
		Property, plant and equipment
		Buildings and structures, net	17,198	16,641
		Machinery, equipment and vehicles, net	24,497	23,961
		Other, net	16,234	16,704
		Total property, plant and equipment	57,931	57,307
		Intangible assets
		Goodwill	5,724	5,081
		Other	6,898	6,610
		Total intangible assets	12,623	11,691
		Investments and other assets
		Investments and other assets	9,431	9,983
		Allowance for doubtful accounts	(52)	(51)
		Total investments and other assets	9,379	9,932
		Total non-current assets	79,934	78,930
	Total assets	155,176	161,810

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				(Million yen)
			As of March 31,2021	As of December 31,2021
Liabilities
	Current liabilities
		Notes and accounts payable - trade	6,192	7,520
		Electronically recorded obligations - operating	8,069	10,743
		Short-term borrowings	26,575	24,347
		Current portion of long-term borrowings	7,604	7,666
		Income taxes payable	415	995
		Provision for bonuses	1,269	879
		Provision for bonuses for directors (and other	－	63
		officers)
		Provision for product compensation	70	129
		Provision for environmental measures	33	4
		Electronically recorded obligations - non-	501	625
		operating
		Other	6,719	8,002
		Total current liabilities	57,452	60,978
	Non-current liabilities
		Long-term borrowings	21,315	22,031
		Provision for share-based remuneration	16	39
		Provision for share-based remuneration for	30	32
		directors (and other officers)
		Provision for loss on guarantees	145	131
		Retirement benefit liability	7,207	7,593
		Asset retirement obligations	17	17
		Other	4,453	4,551
		Total non-current liabilities	33,185	34,398
	Total liabilities	90,637	95,377
Net assets
	Shareholders' equity
		Share capital	8,413	8,413
		Capital surplus	13,114	13,114
		Retained earnings	36,609	37,611
		Treasury shares	(780)	(591)
		Total shareholders' equity	57,356	58,547
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	995	931
		securities
		Foreign currency translation adjustment	(1,170)	(429)
		Remeasurements of defined benefit plans	(793)	(602)
		Total accumulated other comprehensive income	(968)	(99)
	Non-controlling interests	8,150	7,985
	Total net assets	64,538	66,433
Total liabilities and net assets	155,176	161,810

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