Daido Metal : Notice of Difference between Consolidated Forecast and Results and Difference between Non-consolidated Results for FY2019 and 2020

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.

May 14, 2021

Daido Metal Co., Ltd.

Seigo Hanji

Chairman and Chief Executive Officer (Code) 7425 TSE and NSE 1st Section (For inquiry)

Motoyuki Miyo

Director and Managing Executive Officer Head of Corporate Planning Division

(TEL: [phone])

Notice Regarding Differences between Consolidated Financial Forecasts and Actual

Results for the Fiscal Year Ended March 31, 2021 and Difference between Non- consolidated Actual Results for the Fiscal Years Ended March 31, 2020 and 2021

Daido Metal Co., Ltd. (the Company) hereby announces that differences arose between the financial forecasts for the fiscal year ended March 31, 2021 announced on February 12, 2021 and the actual results disclosed today.

The Company also announces the difference between non-consolidated actual results for the current and the previous fiscal year.

1. Differences between Consolidated Forecasts and Results (April 1, 2020 to March 31, 2021)

				Profit	Basic
		Operating	Ordinary	attributable
	Net Sales	earnings
	Profit	Profit	to owners of
		per share
				parent
Previous forecast(A)	Million yen	Million yen	Million yen	Million yen	Yen
(Announced on February 12, 2021.)	83,000	30	-500	-1,150	-24.84
Actual results (B)	84,720	1,315	874	104	2.25
Difference (B-A)	1,720	1,285	1,374	1,254	―
Difference (%)	2.1	―	―	―	―
(For reference) FY2019	100,159	4,168	3,660	2,740	58.22
(year ended March 31, 2020)

(Reasons for the difference)

Although sales and profits decreased compared to the previous fiscal year's results due to the impact of COVID-19 spread, demand has been recovering faster than expected from the third 1

quarter onward in all major regions, especially in the automobile-related field. In addition, the entire Group worked together to reduce fixed costs and expenses, improve profitability, and enhance productivity. As a result, both net sales and profits exceeded the previous forecasts.

2. Differences between Non-Consolidated Results for the fiscal year ended March 31, 2020 and the fiscal year ended March 31, 2021.

		Operating	Ordinary		Basic
	Net Sales	Profit	earnings
	Profit	Profit
			per share
Actual results for	Million yen	Million yen	Million yen	Million yen	Yen
FY2019 (A)	62,860	1,432	2,653	3,905	82.97
Actual results for	54,197	723	2,159	1,690	36.49
FY2020 (B)
Difference (B-A)	-8,662	-709	-493	-2,214	―
Difference (%)	-13.8	-49.5	-18.6	-56.7	―

(Reasons for the difference)

Despite strong demand in the automobile-related field from the third quarter onward and profit improvement activities, the Company was unable to cover the impact of the significant production cutback caused by the COVID-19 spread until the second quarter. As a result, the non-consolidated results for the full year differed from the previous year's results.

For more details of the results for the fiscal year ended March 31, 2021, please refer to "Consolidated Financial Results for the Year Ended March 31, 2021" released today.

(End of document)

2