[Summary] Consolidated Financial Results for the Six Months Ended September 30,2021

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 Six Months Ended September 30, 2021
		[Japanese GAAP]
		November 12, 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:	Hiroki Iwakura	Executive Officer and Head of Corporate Planning Division
Phone:	[phone]

Scheduled filing date of quarterly securities report:

November 12, 2021

Scheduled start date of dividend payments:

December 7, 2021

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session:

Yes (For analysts and financial institutions)

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Six Months Ended September 30, 2021 (April 01, 2021 to September 30, 2021)

(1) Consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Six months ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

September 30, 2021

50,315

38.4

2,677

－

2,602

－

1,188

－

September 30, 2020

36,349

(28.3)

(2,555)

－

(2,875)

－

(2,549)

－

(Note) Comprehensive income:	Six months ended September 30, 2021:
	Six months ended September 30, 2020:

¥	2,627 million	[	－ %]
¥	(3,894) million	[	－%]

		Basic earnings		Diluted earnings per
		per share		share
Six months ended		Yen				Yen
September 30, 2021		25.53				－
September 30, 2020		(55.12)				－
(2) Consolidated Financial Position
		Total assets		Net assets		Capital adequacy ratio
As of		Million yen		Million yen				%
September 30, 2021		160,281			66,444				36.3
March 31, 2021		155,176			64,538				36.3
(Reference) Net assets less non-controlling interests: As of	September 30, 2021:	¥	58,177	million
			As of	March 31, 2021:		¥	56,388	million

―1―

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 to the forecast for dividends announced most recently:

No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 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

92,000

8.6

3,500

166.0

3,200

266.1

1,700

－

36.52

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

No

* Notes:

(1) Changes in significant subsidiaries during the six months ended September 30, 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):

September 30, 2021:	47,520,253	shares
March 31, 2021:	47,520,253	shares
2) Total number of treasury shares at the end of the period:
September 30, 2021:	880,063	shares
March 31, 2021:	1,036,793	shares
3) Average number of shares during the period:
Six months ended September 30, 2021:	46,549,276	shares
Six months ended September 30, 2020:	46,238,699	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―

• 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.

―3―

1. Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheets

				(Million yen)
			As of March 31,2021	As of September 30,2021
Assets
	Current assets
		Cash and deposits	22,007	23,866
		Notes and accounts receivable - trade	23,069	23,509
		Electronically recorded monetary claims -	2,393	2,703
		operating
		Merchandise and finished goods	10,821	12,337
		Work in process	8,380	9,332
		Raw materials and supplies	6,326	7,478
		Other	2,510	1,852
		Allowance for doubtful accounts	(267)	(150)
		Total current assets	75,242	80,930
	Non-current assets
		Property, plant and equipment
		Buildings and structures, net	17,198	16,959
		Machinery, equipment and vehicles, net	24,497	23,937
		Other, net	16,234	16,749
		Total property, plant and equipment	57,931	57,647
		Intangible assets
		Goodwill	5,724	5,120
		Other	6,898	6,651
		Total intangible assets	12,623	11,772
		Investments and other assets
		Investments and other assets	9,431	9,985
		Allowance for doubtful accounts	(52)	(52)
		Total investments and other assets	9,379	9,932
		Total non-current assets	79,934	79,351
	Total assets	155,176	160,281

―4―

				(Million yen)
			As of March 31,2021	As of September 30,2021
Liabilities
	Current liabilities
		Notes and accounts payable - trade	6,192	8,045
		Electronically recorded obligations - operating	8,069	10,198
		Short-term borrowings	26,575	23,775
		Current portion of long-term borrowings	7,604	6,825
		Income taxes payable	415	1,112
		Provision for bonuses	1,269	1,468
		Provision for bonuses for directors (and other	－	42
		officers)
		Provision for product compensation	70	108
		Provision for environmental measures	33	33
		Electronically recorded obligations - non-	501	515
		operating
		Other	6,719	7,231
		Total current liabilities	57,452	59,358
	Non-current liabilities
		Long-term borrowings	21,315	22,338
		Provision for share-based remuneration	16	32
		Provision for share-based remuneration for	30	27
		directors (and other officers)
		Provision for loss on guarantees	145	127
		Retirement benefit liability	7,207	7,496
		Asset retirement obligations	17	17
		Other	4,453	4,440
		Total non-current liabilities	33,185	34,479
	Total liabilities	90,637	93,837
Net assets
	Shareholders' equity
		Share capital	8,413	8,413
		Capital surplus	13,114	13,114
		Retained earnings	36,609	37,333
		Treasury shares	(780)	(663)
		Total shareholders' equity	57,356	58,198
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	995	1,021
		securities
		Foreign currency translation adjustment	(1,170)	(376)
		Remeasurements of defined benefit plans	(793)	(665)
		Total accumulated other comprehensive income	(968)	(20)
	Non-controlling interests	8,150	8,266
	Total net assets	64,538	66,444
Total liabilities and net assets	155,176	160,281

―5―