Daido Metal : Consolidated Financial Results for the Year Ended March 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 Year Ended March 31, 2021

[Japanese GAAP]

May 14, 2021

Company name:

Daido Metal Co., Ltd.

Stock exchange listing: Tokyo, Nagoya

Code number:

7245

URL:

http://www.daidometal.com/

Representative:

Seigo Hanji

Chairman and Chief Executive Officer

Contact:

Motoyuki Miyo

Director and Managing Executive Officer

Head of Corporate Planning Division

Phone:

[phone]

Scheduled date of Annual General Meeting of Shareholders:

June 29, 2021

Scheduled start date of dividend payments:

June 30, 2021

Scheduled filing date of annual securities report:

June 29, 2021

Availability of supplementary briefing material on annual financial results: Yes

Schedule of annual financial results briefing session:

No

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

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 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

Fiscal year ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

March 31, 2021

84,720

(15.4)

1,315

(68.4)

874

(76.1)

104

(96.2)

March 31, 2020

100,159

(7.0)

4,168

(42.6)

3,660

(44.8)

2,740

(33.7)

(Note) Comprehensive income:	Fiscal year ended March 31, 2021:
	Fiscal year ended March 31, 2020:

¥	1,624	million	[	(21.3)	%]
¥	2,065	million	[	(30.1)	%]

	Basic earnings per	Diluted earnings per	Rate of return on	Ordinary profit to	Operating profit to
	share	share	equity	total assets ratio	net sales ratio
Fiscal year ended	Yen	Yen	%	%	%
March 31, 2021	2.25	－	0.2	0.6	1.6
March 31, 2020	58.22	－	4.9	2.3	4.2

(Reference) Equity in earnings of affiliated companies:

Fiscal year ended March 31, 2021: Fiscal year ended March 31, 2020:

• 26 million
• 146 million

(2) Consolidated Financial Position

	Total assets	Net assets		Capital adequacy ratio	Net assets per share
As of	Million yen	Million yen		%		Yen
March 31, 2021	155,176	64,538		36.3		1,213.08
March 31, 2020	159,539	64,168		35.1		1,212.66
(Reference) Net assets less non-controlling interests:	As of	March 31, 2021:	¥	56,388	million
		As of	March 31, 2020:	¥	55,988	million
(3) Consolidated Cash Flows
	Cash flows from	Cash flows from		Cash flows from	Cash and cash
		equivalents at the end
	operating activities	investing activities		financing activities
		of period
Fiscal year ended	Million yen	Million yen		Million yen		Million yen
March 31, 2021	10,098	(7,043)		(3,098)		18,637
March 31, 2020	12,822	(7,297)		(3,553)		19,170

―1―

2. Dividends

		Annual dividends				Payout	Dividends
				Total	to net
								ratio
	1st	2nd		3rd		Year-end	Total	dividends	assets
			(consolidated)
	quarter-end	quarter-end	quarter-end			(consolidated)
Fiscal year ended	Yen	Yen		Yen		Yen	Yen	Million yen	%	%
March 31, 2020	－	20.00		－		15.00	35.00	1,663	60.1	2.9
March 31, 2021	－	10.00		－		10.00	20.00	950	888.7	1.6
Fiscal year ending
March 31, 2022	－	10.00		－		15.00	25.00		68.4
(Forecast)
(Note) Breakdown of the interim dividend for the fiscal year ended March 31, 2020:
Regular dividend	15.00	yen
Commemorative dividend	5.00	yen

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	Basic earnings per
		to owners of parent	share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Six months ended	45,500		25.2	1,750	－	1,600	－	700	－	15.05
September 30, 2021
Full year	92,000		8.6	3,500	166.0	3,200	266.1	1,700	－	36.57

* Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No

New	-	(Company name:	)
Exclusion:	-	(Company name:	)
(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1)	Changes in accounting policies due to the revision of accounting standards: No
2)	Changes in accounting policies other than 1) above:	No
3)	Changes in accounting estimates:	No
4)	Retrospective restatement:	No
(3) Total number of issued shares (common shares)
1)	Total number of issued shares at the end of the period (including treasury shares):
	March 31, 2021:	47,520,253	shares
	March 31, 2020:	47,520,253	shares
2)	Total number of treasury shares at the end of the period:
	March 31, 2021:	1,036,793	shares
	March 31, 2020:	1,350,633	shares

3) Average number of shares during the period:
Fiscal Year ended March 31, 2021:	46,322,538	shares
Fiscal Year ended March 31, 2020:	47,067,351	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.

―2―

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 31, 2021)
(1) Non-consolidated Operating Results				(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit			Ordinary profit	Net income
Fiscal year ended	Million yen		%		Million yen		%			Million yen	%	Million yen	%
March 31, 2021	54,197		(13.8)		723		(49.5)		2,159	(18.6)	1,690	(56.7)
March 31, 2020	62,860		(7.2)		1,432		(48.7)		2,653	(34.1)	3,905	16.1
	Basic earnings per share	Diluted earnings per share
Fiscal year ended			Yen			Yen
March 31, 2021		36.49				－
March 31, 2020		82.97				－
(2) Non-consolidated Financial Position
	Total assets		Net assets		Capital adequacy ratio	Net assets per share
As of		Million yen			Million yen				%		Yen
March 31, 2021		110,247			52,372				47.5		1,126.69
March 31, 2020		105,178			51,162				48.6		1,108.13
(Reference) Equity: As of	March 31, 2021:	¥	52,372		million
As of	March 31, 2020:	¥	51,162		million

• Numbers in parentheses denote negative numbers.
• This financial result is not required to be audited 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.

―3―

1. Consolidated Financial Statements

1. Consolidated Balance Sheets

					(Million yen)
				As of March 31,2020	As of March 31,2021
Assets
	Current assets
		Cash and deposits	22,475	22,007
		Notes and accounts receivable - trade	23,625	23,069
		Electronically recorded monetary claims -	2,304	2,393
		operating
		Merchandise and finished goods	12,278	10,821
		Work in process	9,039	8,380
		Raw materials and supplies	6,889	6,326
		Other	2,613	2,510
		Allowance for doubtful accounts	(445)	(267)
		Total current assets	78,781	75,242
	Non-current assets
		Property, plant and equipment
		Buildings and structures	34,454	36,853
			Accumulated depreciation	(18,632)	(19,654)
			Buildings and structures, net	15,822	17,198
		Machinery, equipment and vehicles	95,940	100,270
			Accumulated depreciation	(71,312)	(75,772)
			Machinery, equipment and vehicles, net	24,628	24,497
		Land	10,405	9,726
		Leased assets	6,695	4,963
			Accumulated depreciation	(1,876)	(1,644)
			Leased assets, net	4,819	3,318
		Construction in progress	4,393	2,207
		Other	7,022	7,384
			Accumulated depreciation	(6,117)	(6,401)
			Other, net	905	982
		Total property, plant and equipment	60,974	57,931
		Intangible assets
		Goodwill	6,193	5,724
		Leased assets	46	34
		Other	6,077	6,863
		Total intangible assets	12,317	12,623
		Investments and other assets
		Investment securities	4,064	5,031
		Long-term loans receivable	230	188
		Retirement benefit asset	365	2,110
		Deferred tax assets	1,794	1,152
		Other	1,067	949
		Allowance for doubtful accounts	(56)	(52)
		Total investments and other assets	7,465	9,379
		Total non-current assets	80,758	79,934
	Total assets	159,539	155,176

―4―

					(Million yen)
				As of March 31,2020	As of March 31,2021
Liabilities
	Current liabilities
		Notes and accounts payable - trade		7,481	6,192
		Electronically recorded obligations - operating	8,065	8,069
		Short-term loans payable		27,644	26,575
		Current portion of long-term loans payable	5,762	7,604
		Lease obligations		2,087	898
		Income taxes payable	885	415
		Provision for bonuses		1,685	1,269
		Provision for bonuses for directors (and other	105	－
		officers)
		Provision for product compensation		185	70
		Provision for environmental measures	50	33
		Electronically recorded obligations - non-		809	501
		operating
		Other	7,053	5,820
		Total current liabilities		61,816	57,452
	Non-current liabilities
		Long-term loans payable		21,889	21,315
		Lease obligations	2,303	2,074
		Deferred tax liabilities		1,680	1,948
		Provision for share-based remuneration	8	16
		Provision for share-based remuneration for		16	30
		directors (and other officers)
		Provision for loss on guarantees	186	145
		Retirement benefit liability		6,967	7,207
		Asset retirement obligations	17	17
		Other		484	430
		Total non-current liabilities	33,554	33,185
	Total liabilities		95,370	90,637
Net assets
	Shareholders' equity
		Capital stock	8,413	8,413
		Capital surplus		13,114	13,114
		Retained earnings	37,693	36,609
		Treasury shares		(1,016)	(780)
		Total shareholders' equity	58,204	57,356
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	361	995
		securities
		Foreign currency translation adjustment		(654)	(1,170)
		Remeasurements of defined benefit plans	(1,922)	(793)
		Total accumulated other comprehensive income		(2,216)	(968)
	Non-controlling interests		8,180	8,150
	Total net assets		64,168	64,538
Total liabilities and net assets	159,539	155,176

―5―