Daido Steel : Consolidated Financial Results for the Three Months Ended June 30, 2021

Consolidated Financial Results

for the Three Months Ended June 30, 2021

[Japanese GAAP]

July 28, 2021

Company name: Daido Steel Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange, Nagoya Stock Exchange

Code number: 5471

URL: https://www.daido.co.jp/

Representative: Takeshi Ishiguro, President and Representative Executive Director

Contact: Hideo Suzuki, General Manager, General Affairs Department

Phone: [phone]

Scheduled date of filing quarterly securities report: August 13, 2021

Scheduled date of commencing dividend payments: ―

Availability of supplementary briefing material on quarterly financial results: Available

Schedule of quarterly financial results briefing session: Scheduled (for securities analysts and institutional investors)

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

1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 1, 2021 to June 30, 2021)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
	Net sales		Operating income		Ordinary income		Profit attributable to
				owners of parent
Three months ended	Million yen		%	Million yen		%	Million yen		%	Million yen		%
June 30, 2021	131,239		47.8	10,505		－	11,824		－	7,628		－
June 30, 2020	88,789		(30.5)	(2,431)		－	(1,667)		－	(1,553)		－

(Note) Comprehensive income: Three months ended June 30, 2021: ¥10,641 million [334.8%]

Three months ended June 30, 2020: ¥2,447 million [(65.5%)]

Profit attributable to

Diluted profit

attributable to owners

owners of parent

of parent

per share

per share

Three months ended

Yen

Yen

June 30, 2021

178.95

－

June 30, 2020

(36.45)

－

(2) Consolidated Financial Position

Total assets

Net assets

Shareholders'

equity ratio

Million yen

Million yen

%

As of June 30, 2021

670,932

348,191

46.4

As of March 31, 2021

665,506

339,353

45.6

(Reference) Shareholders' equity: As of June 30, 2021

: ¥311,163 million

As of March 31, 2021

: ¥303,143 million

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

－

25.00

35.00

Fiscal year ending March 31, 2022

－

Fiscal year ending March 31, 2022

75.00

－

75.00

150.00

(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 1, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating income	Ordinary income	Profit attributable to	Profit attributable to
		owners of parent	owners of parent
								per share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
First half	255,000		42.1	18,000	－	18,500	－	11,500	－	269.78
Full year	500,000		21.1	35,000	247.6	36,000	184.8	23,500	420.3	551.29

(Note) Revision to the financial results forecast announced most recently: No

* Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
2. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 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

(Note) The company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020), etc. effective from the beginning of the first quarter ended June 30, 2021.

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

June 30, 2021	43,448,769 shares
March 31, 2021	43,448,769 shares
2) Total number of treasury shares at the end of the period:
June 30, 2021	821,586 shares
March 31, 2021	821,449 shares
3) Average number of shares during the period:
Three months ended June 30, 2021	42,627,247 shares
Three months ended June 30, 2020	42,628,254 shares

• These quarterly financial results are outside the scope of quarterly review procedures by a certified public accountant or an audit firm
• Explanation of the proper use of financial results forecast and other notes

The earnings forecasts and other forward-looking statements herein are based on information available to the Company and certain assumptions deemed reasonable as of the date of publication of this document. Actual results may differ significantly from these forecasts due to a wide range of factors.

Supplementary briefing material

July 28, 2021 Daido Steel Co., Ltd.

Consolidated Financial Results for the Three Months Ended June 30, 2021

(1) Net sales and operating income by reportable segment			(2) Condensed statement of profit and loss (cumulative)
				(Millions of yen, %)			(Millions of yen, %)
		Net sales		Operating income			1Q	YoY
					Change
									June	[% of
			YoY
		1Q		1Q				2021
		Change		YoY			Change]
		June		June
		[% of		Change
						42,449
		2021	2021		Net sales	131,239
		Change]			[47.8%]
			17,751
Specialty Steel	46,558	1,013	2,889		Operating income	10,505	12,937
[61.6%]
							[－% ]
High Performance		15,012
47,872	7,141	5,913		Non-operating income	1,319	554
Materials and	[45.7%]		and expenses
Magnetic Materials							13,492
					Ordinary income	11,824
Parts for		7,375
					[－% ]
Automobile and	24,900		1,953	4,384
[42.1%]		Extraordinary income
Industrial Equipment						－	(9)
								and losses
			(303)
Engineering	3,724	(386)	(542)		Income before income	11,824	13,482
[(7.5%)]
							taxes
			2,613
Trading and	8,182	778	296		Income taxes	3,218	3,331
		Profit attributable to
Service	[46.9%]		977	969
								non-controlling interests		9,182
Adjustment	－	－	5	(3)		Profit attributable to	7,628
								owners of parent	[－% ]
Total	131,239	42,449	10,505	12,937
[47.8%]

(Sales volume of Specialty Steel 322 thou. tons, increasing 148 thou. tons vs FY2020-1Q)

(3) Reasons for change in the amount of ordinary income (YoY comparison)

					(100 millions of yen)	(Reference: Market condition)
Reasons for	Amount			Reasons for		Amount						1Q		1Q
increase			decrease							June		June
																2020		2021
1. Sales volume	139		1. Raw material			74
		and fuel cost					H2			16.1		43.1
2. Sales mix change	29		2. Fixed cost			17
					(Thousands of yen/t)
3. Sales price	23
										Nickel (LME)			5.5		7.9
4. Variable cost	20
										(One dollar/lb)
5. Change of financial	9
										Exchange rate (TTM)
periods												108.6		110.5
6. Non-operating	6											(yen/dollar)
income or loss
Total (a)	226			Total (b)			91
					Change (a) - (b)		135
(4) Condensed balance sheet													(Millions of yen)
		As of		As of									As of	As of
Item		March 31,		June 30,		Change					Item	March 31,	June 30,	Change
		2021			2021									2021		2021
Current assets		319,364		326,501		7,136		Liabilities	326,152	322,741	(3,411)
Cash and deposits		67,314		60,770		(6,544)		Trade payables	65,589	64,397	(1,191)
Trade receivables		125,918		126,987		1,069		Interest-bearing debt	198,812	194,558	(4,254)
Inventories		118,532		132,458		13,925		Other		61,750	63,785	2,034
Other		7,599		6,284		(1,314)
Non-current assets		346,142		344,431		(1,710)		Net assets	339,353	348,191	8,837
Property, plant and		231,846		229,717		(2,129)		Shareholders' equity	280,297	286,524	6,227
equipment
									Accumulated other
Intangible assets		2,721		2,827		106		comprehensive	22,846	24,638	1,792
										income
Investments and		111,574		111,886		311		Non-controlling	36,210	37,028	817
other assets					interests
Total assets		665,506		670,932		5,425			Total liabilities	665,506	670,932	5,425
					and net assets