FY2021 2nd Quarter Consolidated Financial Results Highlights

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.

November 12, 2021

Daido Metal Co., Ltd.

FY2021 Second Quarter Consolidated Financial Results Highlights

1．Overview

2nd Quarter (YTD)
Financial Results
Net sales
Operating profit
(Operating margin)
Ordinary profit
(Ordinary income margin)
Profit attributable to owners of parent
(Net profit margin)
Return on Equity (ROE)	*1
Net assets to total assets
Net interest bearing debt
Capital Expenditure
Depreciation
R&D expenses
Number of consolidated subsidiaries
Exchange rate (USD)
Exchange rate (EUR)
*1	Annualized

			(Unit: JPY Million)
Actual	Year-on-year comparison	Forecast
2020/9	2021/9	Amount	%	2022/3
36,349	50,315	13,966	38.4%	92,000
-2,555	2,677	5,232	―	3,500
(-7.0%)	(5.3%)	―	―	(3.8%)
-2,875	2,602	5,477	―	3,200
(-7.9%)	(5.2%)	―	―	(3.5%)
-2,549	1,188	3,737	―	1,700
(-7.0%)	(2.4%)	―	―	(1.8%)
-9.5%	4.2%	13.6%	―	―
32.6%	36.3%	3.7%	―	―
40,762	32,125	- 8,636	- 21.2%	―
4,034	3,368	- 665	- 16.5%	6,700
4,215	4,532	317	7.5%	9,400
987	944	- 43	- 4.4%	2,000
33	33	0	―	―
107.74	110.58	Exchange rate is TTM rate	107.00
121.08	131.58	as of June 30.		128.00

≪Causes of Fluctuation in Operating profit≫

(Unit: JPYBillion)

≪Dividend/ Dividend Payout Ratio≫			(Unit: JPY)
	2018/3	2019/3	2020/3	2021/3	2022/3
Interim	15	15	20 (*1)	10	10
Year-end	15	15	15	10	15 (*2)
Annual	30	30	35	20	25 (*2)
Dividend
Payout	33.3%	32.0%	60.1%	888.7% 68.5% (*2)
Ratio

（＊1） The interim dividend for FY2019 : Regular dividend (15 yen) + Commemorative dividend (5 yen)

2．Consolidated Financial Results/Capital Expenditure and Depreciation

（＊2） Forecast

(Unit: JPYBillion)

(Unit: JPYBillion)

(Unit: JPYBillion)

(Unit: JPYBillion)

					Net sales				Operating profit/Operating margin	Ordinary profit/Ordinary income margin
106.6	107.7										Operating profit				Ordinary profit
									Operating margin				Ordinary income margin
					100.1	92.0	6.2%	6.7%	4.2%	3.8%	6.4%	6.2%
								84.7	6.6	7.2		3.7%	3.5%
									6.8
															6.6
														1.6%				1.0%

4.1

3.5

3.6

3.2

50.3

1.3

2.6

0.8

2.6

2018/3

2019/3

2020/3

2021/3

2022/3

2018/3

2019/3

2020/3

2021/3

2022/3

2018/3

2019/3

2020/3

2021/3

2022/3

Forecast

Forecast

Forecast

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		Capital Expenditure/Depreciation
			10.8			9.4
8.6	8.7	8.5	9.5	8.1	8.7
		7.2		6.7
					3.3	4.5

Capital Expenditure	Depreciation	Capital Expenditure	Depreciation	Capital Expenditure	Depreciation	Capital Expenditure	Depreciation	Capital Expenditure	Depreciation
2018/3		2019/3		2020/3		2021/3		2022/3

Forecast

3．Sales and Operating profit by Segment

November 12, 2021 Daido Metal Co., Ltd.

(Before elimination of inter-segment transactions)

Net sales											Operating Profit or loss
(Unit: JPYBillion)		4.2		Net sales		Operating profit or loss	(Unit: JPYBillion)
	28.6								4
25
20.0											3

	Net sales ratio
Segment
	2021/9
Automotive	55.7%
engine bearings

[Sales] Year-on-year comparison Amount (%)

8,570 (42.8%)

(+)Gains	(-)Losses (Unit: JPY Million)	[Operating profit] (+)Gains	(-)Losses (Unit: JPY Million)
		Year-on-year
	Causes of Gains and Losses	comparison	Causes of Gains and Losses
	Amount
		(%)

① (+) Japan: Orders increase due to strong recovery for the passenger car sales and

in export truck market for Southeast Asia, etc.	3,914	(+) As sales increased on the left.
②(+)	Orders increase due to strong demand recovery for turbocharger bearings.	(1066.3%)
③(+)	Orders increase due to in globally strong demand recovery from COVID-19.

15	1.7	2
10.0

	0.36		6.6		5.0 0.84	5.2 0.70	4.2	6.4			1
5		0.43						1.0 0.18	1.0 0.16
											0
5								-0.64
										-1
							-1.1
											-2
	2020/9	2021/9	2020/9	2021/9	2020/9	2021/9	2020/9	2021/9	2020/9	2021/9
	Automotive	Automotive	Non-automotive	Other automotiveparts	Others	*
	enginebearings	non-enginebearings	bearings

* "Others"includeselectrodesheetsforelectricdoublelayer capacitors,themetallicdrybearingsbusiness, pump-relatedproductsbusinesses, andreal estate leasingbusiness.

4．Sales and Operating profit by Region

(Before elimination of internal transactions)

Net sales										Operating Profit or loss
36.4
			Net sales		Operating profit or loss	(Unit: JPYBillion)
(Unit: JPYBillion)
2.0	2.0

Automotive	19.5%
non-engine bearings
Non-automotive	10.2%
bearings

Other automotive	12.6%
parts
Others	2.0%
Elimination of
inter-segment transactions
Total

3,358 (50.5%)

185 (3.7%)

2,183 (51.0%)

• 46

(-4.3%)

• 285

13,966 (38.4%)

④(+) Orders increase due to strong recovery in global automotive production from COVID-19.

⑤(+) Low-speed diesel engines for ships :

Increase orders for the development of new customers in China, despite of decline in overall demand in the marine industry.

⑥(+) Construction machinery: Orders increased due to recovery in demand for

service parts and inventory build-up.

⑦(-)Energy sector : Orders decreased for gas and steam turbine bearings, despite of increasing assembly bearing of water turbines and drainage pump stations by winning over new customers.

⑧(+) Formed pipes, Knock pins, NC milled parts, etc.: Orders increase due to

strong demand recovery from COVID-19 in Japan, China and North America.

⑨(+) Aluminum die cast products : Orders increase due to demand recovery in Thailand from COVID-19 in Automotive Industry and new entrants for electric vehicles.

1,277	(+) As sales increased on the left.
(293.7%)

• 149 (+) As sales increased on the left.
  (-17.6%)(-) As sales decreased on the left.

	⑩(+) Formed pipes, Knock pins, NC milled
	parts, etc.: Impact of profit improvement by recovery
	from COVID-19, and productivity improvement and
522	rationalization efforts.
(44.9%)	⑪(+) Aluminum die cast products : Impact of
	increased due to recovery from COVID-19 in Thailand
	and profit improvement due to efforts to reduce labor
	costs, etc.
- 13
(-7.1%)
- 319
5,232
( - )

30	25.9
																																1.5
20													15.4																	1.0
10								10.3				0.63					6.4 0.44				5.9
																4.4			4.3			0.5
0																																0.0
																									- 0.06			-0.5
-10																	-0.29
																							-0.41
							-0.47
																																-1.0
-20
																																-1.5
-30																																-2.0
-40	-2.1																													-2.5
	2020/9		2021/9		2020/9		2021/9		2020/9		2021/9		2020/9	2021/9
			Japan							Asia						North America					Europe

		[Sales]	(+)Gains (-)Losses (Unit: JPY Million)	[Operating profit] (+)Gains (-)Losses (Unit: JPY Million)
	Net sales ratio	Year-on-year		Year-on-year
	comparison		comparison
Region		Causes of Gains and Losses	Causes of Gains and Losses
	2021/9	Amount		Amount
	(%)		(%)
					(+) Same as ③, ④ above.
Japan	56.7%	10,492	(+) Same as ➀, ② above.	4,229	⑭(+) Formed pipes, Knock pins, NC milled
(40.4%)	( - )	parts, etc.: Impact of profit improvement by recovery
					from COVID-19.
			⑫(+) China: Strong performance for local automobile manufacturers in China and
		5,089	orders increase of Japanese manufacturers due to demand recovery from COVID-	1,106	(+) As sales increased on the left.
Asia	24.0%	19.
(49.2%)	( - )	(+) Same as ⑭ above.
		⑬(+) Thailand: Orders increase due to demand recovery from COVID-19 in
			Automotive Industry.(Automobile-related and aluminum die cast products)
North America	10.1%	2,076	(+) Same as ③, ④, ⑥ above.	744	(+) Same as ③, ④ above.
(47.1%)	( - )
Europe	9.3%	1,577	(+) Same as ③, ④ above.	-357
(including Russia)	(35.9%)	(-575.4%)
Elimination of		-5,270		-490
internal transactions
Total		13,966		5,232
	(38.4%)		( - )

• 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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