Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) August 7 , 2026 Company name : Listing : Daido Metal Co. , Ltd. Securities code : URL : Tokyo Stock Exchange , Nagoya Stock Exchange 7245 https://www.daidometal.com/ Representative : Inquiries : Telephone : Seigo Hanji Yasuhiro Okura + 81-52-205-1400 Chairman and Chief Executive Officer Senior Executive Officer and Head of Corporate Planning Division Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Yes Holding of financial results briefing : None FASF 1. Consolidated financial results for the three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Yen amounts are rounded down to millions , unless otherwise noted . ) ( Percentages indicate year - on - year changes . ) Net sales Operating profit Ordinary profit Three months ended June 30 , 2026 Millions of yen 35,333 % 5.4 Millions of yen 2,017 10.1 % Millions of yen 1,786 % Profit attributable to owners of parent Millions of yen % June 30 , 2025 Note : Comprehensive income For the three months ended June 30 , 2026 : For the three months ended June 30 , 2025 : 33,516 0.9 1,832 31.9 1,467 21.8 8.5 1,020 72.3 592 26.8 ¥ 1,258 million [ - % ] ¥ ( 441 ) million [ - % ] Three months ended June 30 , 2026 June 30 , 2025 ( 2 ) Consolidated financial position Basic earnings per share Yen 21.89 12.60 Diluted earnings per share Yen As of June 30 , 2026 Total assets Net assets Equity - to - asset ratio Millions of yen 210,132 209,434 Millions of yen % 91,194 38.9 91,425 39.2 As of June 30 , 2026 : ¥ 81,839 million As of March 31 , 2026 : ¥ 82,089 million March 31 , 2026 Reference : Equity 1
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2 22222..... CCCCCaaaaassssshhhhh dddddiiiiivvvvviiiiidddddeeeeennnnndddddsssss Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended - 12.00 - 19.00 31.00March 31, 2026 Fiscal year ending -March 31, 2027 Fiscal year ending March 31, 2027 (Forecast) 18.00 - 18.00 36.00 Note: Revisions to the forecast of cash dividends most recently announced: None 33333..... CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd fffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll rrrrreeeeesssssuuuuulllllttttt fffffooooorrrrreeeeecccccaaaaassssstttttsssss fffffooooorrrrr ttttthhhhheeeee fffffiiiiissssscccccaaaaalllll yyyyyeeeeeaaaaarrrrr eeeeennnnndddddiiiiinnnnnggggg MMMMMaaaaarrrrrccccchhhhh 3333311111,,,,, 22222000002222277777 (((((fffffrrrrrooooommmmm AAAAAppppprrrrriiiiilllll 11111,,,,, 22222000002222266666 tttttooooo MMMMMaaaaarrrrrccccchhhhh 3333311111,,,,, 22222000002222277777))))) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 145,000 2.1 9,500 13.5 9,000 21.6 5,000 13.7 107.20 Note: Revisions to the financial result forecast most recently announced: None ***** NNNNNooooottttteeeeesssss (1) Significant changes in the scope of consolidation during the period: None Newly included: - companies( ) Excluded: - companies( ) (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 47,520,253 shares As of March 31, 2026 47,520,253 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 1,152,130 shares As of March 31, 2026 654,906 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 46,637,959 shares Three months ended June 30, 2025 47,024,103 shares (Note) The Company has introduced 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. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Proper use of earnings forecasts, and other special matters Numbers in parentheses denote negative numbers. 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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3 Quarterly Consolidated Financial Statements and Primary Notes (1)Quarterly Consolidated Balance Sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 29,469 28,185 Notes and accounts receivable - trade 31,213 30,834 Electronically recorded monetary claims - operating 3,497 3,271 Merchandise and finished goods 19,886 20,164 Work in process 14,357 15,732 Raw materials and supplies 11,047 11,197 Other 3,069 3,780 Allowance for doubtful accounts (119) (128) Total current assets 112,422 113,038 Non-current assets Property, plant and equipment Buildings and structures, net 18,571 19,382 Machinery, equipment and vehicles, net 21,717 22,288 Other, net 25,117 23,231 Total property, plant and equipment 65,405 64,902 Intangible assets Goodwill 2,898 2,695 Other 4,341 4,371 Total intangible assets 7,240 7,067 Investments and other assets Investments and other assets 24,414 25,172 Allowance for doubtful accounts (47) (48) Total investments and other assets 24,366 25,123 Total non-current assets 97,012 97,093 Total assets 209,434 210,132
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4 (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 10,300 10,632 Electronically recorded obligations - operating 13,327 14,303 Short-term borrowings 27,187 27,020 Current portion of long-term borrowings 8,206 10,101 Income taxes payable 2,323 1,323 Provision for bonuses 2,051 1,035 Provision for bonuses for directors (and other officers) 138 52 Provision for product compensation 87 114 Electronically recorded obligations - non-operating 1,227 1,753 Other 9,484 11,361 Total current liabilities 74,335 77,698 Non-current liabilities Long-term borrowings 29,104 26,702 Provision for share awards 112 100 Provision for share awards for directors (and other officers) 101 108 Retirement benefit liability 7,884 7,949 Asset retirement obligations 17 17 Other 6,453 6,360 Total non-current liabilities 43,674 41,239 Total liabilities 118,009 118,937 Net assets Shareholders' equity Share capital 8,413 8,413 Capital surplus 13,112 13,112 Retained earnings 41,623 41,741 Treasury shares (455) (965) Total shareholders' equity 62,694 62,301 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,786 1,957 Foreign currency translation adjustment 13,000 13,028 Remeasurements of defined benefit plans 4,608 4,551 Total accumulated other comprehensive income 19,395 19,537 Non-controlling interests 9,335 9,355 Total net assets 91,425 91,194 Total liabilities and net assets 209,434 210,132
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5 (2)Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income For the Three-Month Period (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net sales 33,516 35,333 Cost of sales 25,111 26,402 Gross profit 8,405 8,931 Selling, general and administrative expenses 6,573 6,914 Operating profit 1,832 2,017 Non-operating income Interest income 94 73 Dividend income 95 103 Share of profit of entities accounted for using equity method 20 － Other 45 77 Total non-operating income 256 255 Non-operating expenses Interest expenses 351 390 Share of loss of entities accounted for using equity method － 5 Foreign exchange losses 237 16 Other 32 72 Total non-operating expenses 621 485 Ordinary profit 1,467 1,786 Profit before income taxes 1,467 1,786 Income taxes - current 994 703 Income taxes - deferred (299) (119) Total income taxes 694 584 Profit 772 1,202 Profit attributable to non-controlling interests 179 181 Profit attributable to owners of parent 592 1,020
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6 Quarterly Consolidated Statement of Comprehensive Income For the Three-Month Period (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Profit 772 1,202 Other comprehensive income Valuation difference on available-for-sale securities 142 177 Foreign currency translation adjustment (1,197) (23) Remeasurements of defined benefit plans, net of tax (47) (49) Share of other comprehensive income of entities accounted for using equity method (111) (48) Total other comprehensive income (1,213) 56 Comprehensive income (441) 1,258 Comprehensive income attributable to Comprehensive income attributable to owners of parent (204) 1,163 Comprehensive income attributable to non-controlling interests (236) 95
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7 (3)Quarterly Consolidated Statement of Cash Flows (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Cash flows from operating activities Profit before income taxes 1,467 1,786 Depreciation 2,374 2,306 Amortization of goodwill 201 213 Share of loss (profit) of entities accounted for using equity method (20) 5 Increase (decrease) in allowance for doubtful accounts 13 9 Increase (decrease) in provision for bonuses (1,031) (1,015) Increase (decrease) in provision for bonuses for directors (and other officers) (82) (86) Increase or decrease in net defined benefit asset and liability (161) (211) Increase (decrease) in provision for share awards (17) (11) Increase (decrease) in provision for share awards for directors (and other officers) 3 7 Interest and dividend income (190) (177) Interest expenses 351 390 Loss (gain) on sale of non-current assets (2) (5) Decrease (increase) in trade receivables (1,065) 804 Decrease (increase) in inventories 170 (1,702) Increase (decrease) in trade payables (1,566) 1,204 Increase (decrease) in accrued consumption taxes 84 83 Loss on retirement of non-current assets 25 29 Increase (decrease) in other liabilities 2,748 2,240 Other, net 109 (623) Subtotal 3,412 5,248 Interest and dividends received 194 187 Interest paid (259) (333) Income taxes paid (787) (1,501) Net cash provided by (used in) operating activities 2,560 3,601
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8 (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Cash flows from investing activities Payments into time deposits (238) (22) Proceeds from withdrawal of time deposits 881 1,129 Purchase of investment securities (13) (1) Purchase of property, plant and equipment (1,955) (1,652) Proceeds from sale of property, plant and equipment 1 2 Purchase of intangible assets (154) (153) Loan advances (140) (165) Proceeds from collection of loans receivable 128 140 Other, net (5) (5) Net cash provided by (used in) investing activities (1,495) (728) Cash flows from financing activities Net increase (decrease) in short-term borrowings 467 (406) Proceeds from long-term borrowings 3,200 1,500 Repayments of long-term borrowings (2,974) (2,019) Repayments of finance lease liabilities (158) (163) Purchase of treasury shares (184) (515) Proceeds from disposal of treasury shares － 5 Decrease (increase) in deposit for acquisition of treasury shares － (485) Dividends paid (500) (860) Dividends paid to non-controlling interests (29) (33) Net cash provided by (used in) financing activities (179) (2,978) Effect of exchange rate change on cash and cash equivalents (294) 12 Net increase (decrease) in cash and cash equivalents 589 (93) Cash and cash equivalents at beginning of period 25,019 26,281 Cash and cash equivalents at end of period 25,608 26,188
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9 (4) Notes to Quarterly Consolidates Financial Statementer (Notes on going concern assumption) Not applicable (Notes on material changes in Shareholders’Equity) Not applicable (Segment information) [ First quarter of previous period (from April 1, 2025 to June 30, 2025) ] ① Information on sales and profit (loss) by each reporting segment (Million yen) Reporting Segment Others (*) TotalPowertrain business Marine & Energy business Life business Frontier business Sub total Net sales External sales 17,443 4,571 5,518 5,520 33,053 463 33,516 Internal sales or transfer between segments 110 － 92 24 226 75 302 Total 17,553 4,571 5,611 5,544 33,280 538 33,819 Segment profit(loss) 2,337 928 857 (303) 3,819 107 3,926 (*) “Others” includes business areas not included in above reporting segments. It includes the metallic dry bearings business, pump-related products businesses. ② Reconciliation between total reporting segment profit (loss) and profit (loss) reported in Quarterly Consolidated Statements of Income (Million yen) Profit Amount Reporting segments total 3,819 Profit from “Others” category 107 Elimination of intersegment transactions 7 Unattributable costs (*) (2,100) Operating profit (loss) as per Quarterly Consolidated Statements of Income 1,832 (*) Unattributable costs are principally general administrative expenses not attributable to reporting segments.
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10 [ First quarter of current period (from April 1, 2026 to June 30, 2026) ] ① Information on sales and profit (loss) by each reporting segment (Million yen) Reporting Segment Others (*) TotalPowertrain business Marine & Energy business Life business Frontier business Sub total Net sales External sales 18,002 5,203 5,976 5,618 34,801 532 35,333 Internal sales or transfer between segments 156 27 81 50 316 69 386 Total 18,159 5,230 6,058 5,669 35,117 602 35,720 Segment profit(loss) 2,250 1,087 1,089 (347) 4,081 121 4,202 (*) “Others” includes business areas not included in above reporting segments. It includes the metallic dry bearings business, pump-related products businesse. ② Reconciliation between total reporting segment profit (loss) and profit (loss) reported in Quarterly Consolidated Statements of Income (Million yen) Profit Amount Reporting segments total 4,081 Profit from “Others” category 121 Elimination of intersegment transactions 23 Unattributable costs (*) (2,208) Operating profit (loss) as per Quarterly Consolidated Statements of Income 2,017 (*) Unattributable costs are principally general administrative expenses not attributable to reporting segments.