大同特殊鋼（5471） – Consolidated Financial Results for the Nine Months Ended December 31, 2021 [Japanese GAAP]

Consolidated Financial Results for the Nine Months Ended December 31, 2021 [Japanese GAAP] January 31, 2022 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: +81-52-963-7501 Scheduled date of filing quarterly securities report: February 14, 2022 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 Nine Months Ended December 31, 2021(April 1, 2021 to December 31, (1) Consolidated Operating Results (% indicates changes from the previous corresponding period.) Net sales Operating income Ordinary income Profit attributable to owners of parent Nine months ended December 31, 2021 December 31, 2020 (Note) Comprehensive income: Nine months ended December 31, 2021: ¥25,769 million [63.6%] % Million yen － 31,174 4,102 (91.1) % Million yen 28,914 1,861 Million yen 390,499 287,127 659.9 (80.8) 36.0 (23.1) % Million yen 22,203 1,623 % － (89.9) Nine months ended December 31, 2020: ¥15,755 million [(5.9%)] 2021) Profit attributable to owners of parent per share Diluted profit attributable to owners of parent per share Nine months ended December 31, 2021 December 31, 2020 (2) Consolidated Financial Position Yen 520.87 38.08 Yen － － Total assets Net assets Shareholders’ equity ratio As of December 31, 2021 As of March 31, 2021 (Reference) Shareholders’ equity: As of December 31, 2021 : ¥321,920 million Million yen 710,492 665,506 Million yen 359,247 339,353 % 45.3 45.6 As of March 31, 2021 : ¥303,143 million 1st quarter-end 2nd quarter-end Fiscal year ended March 31, 2021 Fiscal year ending March 31, 2022 Fiscal year ending March 31, 2022 (Forecast) Yen － － (Note) Revision to the forecast for dividends announced most recently: Yes Annual dividends 3rd quarter-end Yen － － Yen 10.00 80.00 Year-end Total Yen 25.00 Yen 35.00 100.00 180.00 2. Dividends 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022) Net sales Operating income Ordinary income (% indicates changes from the previous corresponding period.) Profit attributable to owners of parent Profit attributable to owners of parent per share Full year Million yen 530,000 % Million yen 35,000 28.4 % Million yen 37,000 247.6 % Million yen 26,000 192.7 % 475.6 Yen 609.94 (Note) Revision to the financial results forecast announced most recently: Yes * 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 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. (4) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): December 31, 2021 March 31, 2021 43,448,769 shares 43,448,769 shares 2) Total number of treasury shares at the end of the period: December 31, 2021 March 31, 2021 822,029 shares 821,449 shares 3) Average number of shares during the period: Nine months ended December 31, 2021 42,627,056 shares Nine months ended December 31, 2020 42,628,064 shares an audit firm * These quarterly financial results are outside the scope of quarterly review procedures by a certified public accountant or * 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 (1) Net sales and operating income by reportable segment Consolidated Financial Results for the Nine Months Ended December 31, 2021 (Millions of yen, %) (2) Condensed statement of profit and loss (cumulative) (Millions of yen, %) Net sales Operating income 3Q December 2021 3Q December 2021 YoY Change Specialty Steel 144,915 2,163 4,259 Operating income 28,914 Net sales 390,499 High Performance Materials and Magnetic Materials Parts for Automobile and Industrial Equipment 146,011 21,089 15,443 69,437 4,323 7,765 Engineering 13,044 (962) (1,428) Trading and Service Adjustment 17,091 － 2,321 1,033 (20) (19) Total 390,499 28,914 27,053 Non-operating income and expenses Ordinary income Extraordinary income and losses Income before income taxes Income taxes Profit attributable to non-controlling interests Profit attributable to owners of parent YoY Change [% of Change] 45,869 [46.3%] 42,541 [41.1%] 11,410 [19.7%] (1,675) [(11.4%)] 5,226 [44.1%] － 103,372 [36.0%] January 31, 2022 Daido Steel Co., Ltd. 3Q December 2021 YoY Change [% of Change] 103,372 [36.0%] 27,053 [－% ] 2,259 17 31,174 27,071 [659.9%] 2,706 2,587 33,881 29,659 9,448 2,229 22,203 7,437 1,642 20,579 [－% ] (Sales volume of Specialty Steel 951 thou. tons, increasing 298 thou. tons vs FY2020-3Q) (3) Reasons for change in the amount of ordinary income (YoY comparison) (100 millions of yen) (Reference: Market condition) Reasons for increase Amount Reasons for decrease Amount 295 1. Raw material and fuel cost 207 2. Fixed cost 1. Sales volume 2. Sales price 3. Sales mix change 4. Variable cost 5. Change of financial periods 94 51 9 Total (a) 656 Total (b) Change (a) – (b) 348 38 386 270 H2 (Thousands of yen/t) Nickel (LME) (One dollar/lb) Exchange rate (TTM) (yen/dollar) 3Q December 2020 3Q December 2021 21.0 46.3 6.4 8.5 107.1 112.1 Item Change Item As of March 31, 2021 319,364 As of December 31, 2021 374,067 67,314 125,918 118,532 7,599 346,142 59,688 144,861 159,873 9,644 336,424 (4) Condensed balance sheet Current assets Cash and deposits Trade receivables Inventories Other Non-current assets Property, plant and equipment Investments and other assets 54,702 Liabilities (7,626) 18,943 Trade payables Interest-bearing debt 41,341 Other 2,045 (9,717) Net assets Accumulated other comprehensive income Non-controlling interests Total liabilities and net assets 231,846 225,281 (6,565) Shareholders’ equity 280,297 298,171 17,874 Intangible assets 2,721 3,280 559 22,846 23,749 902 111,574 107,862 (3,711) 36,210 37,326 1,116 Total assets 665,506 710,492 44,985 665,506 710,492 44,985 (Millions of yen) As of March 31, 2021 326,152 As of December 31, 2021 351,244 65,589 198,812 61,750 61,516 225,998 63,729 Change 25,091 (4,072) 27,185 1,978 339,353 359,247 19,893 (5) Net sales and operating income forecast by reportable segment (Millions of yen, %) (6) Financial results forecast Net sales Operating income Forecast for fiscal year ending March 31, 2022 YoY Change [% of Change] Forecast for fiscal year ending March 31, 2022 YoY Change Net sales Operating income Ordinary income Profit attributable to owners of parent Specialty Steel 198,000 2,900 5,532 High Performance Materials and Magnetic Materials Parts for Automobile and Industrial Equipment 198,500 26,100 13,927 94,400 4,600 6,709 52,157 [35.8%] 49,079 [32.8%] 13,649 [16.9%] (1,605) [(7.9%)] Engineering 18,600 (1,300) (2,158) 2,700 20,500 Adjustment Trading and Service 3,995 [24.2%] － 117,277 [28.4%] (Sales volume of Specialty Steel 1,266 thou. tons, increasing 288 thou. tons vs FY2020) (7) Forecasted reasons for change in the amount of ordinary income (YoY comparison) 530,000 24,929 35,000 Total 913 － － 4 Reasons for increase Amount Amount Reasons for decrease 1. Raw material and fuel cost 1. Sales volume 285 (100 millions of yen) (Reference: Market condition) 2. Sales price 336 2. Fixed cost 3. Sales mix change 4. Variable cost 5. Change of financial periods Total (a) 123 53 3. Non-operating income or loss 9 806 Total (b) Change (a) – (b) (Reference) Historical Financial Results 506 51 6 563 243 H2 (Thousands of yen/t) Nickel (LME) (One dollar/lb) Exchange rate (TTM) (yen/dollar) Actual results (Millions of yen, %) YoY Change Forecast for fiscal year ending March 31, 2022 530,000 35,000 37,000 26,000 [% of Change] 117,277 [28.4%] 24,929 [247.6%] 24,357 [192.7%] 21,483 [475.6%] Fiscal year ended March 31, 2021 Forecast for fiscal year ending March 31, 2022 24.9 46.6 6.8 8.7 107.1 112.3 (Millions of yen) Forecast for fiscal year ending March 31, 2022 Operating income Ordinary income Profit attributable to owners of parent Fiscal year ended March 31, 2018 Fiscal year ended March 31, 2019 Fiscal year ended March 31, 2020 Fiscal year ended March 31, 2021 Net sales 505,219 543,255 490,421 412,722 530,000 36,218 36,130 23,920 33,815 34,343 21,182 24,768 24,298 10,987 10,070 12,642 4,516 35,000 37,000 26,000