Daio Paper : Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (unaudited) (Based on Japanese GAAP)

Summary of Consolidated Financial Results

for the Fiscal Year Ended March 31, 2021 (unaudited)

(Based on Japanese GAAP)

				May 14, 2021
Company name:	Daio Paper Corporation
Stock exchange listing:	Tokyo
Stock code:	3880		URL https://www.daio-paper.co.jp
Representative:	President and Representative Director Chief Executive Officer	Yorifusa
Wakabayashi
Inquiries:	Executive Officer and General Manager, Accounting Department Junichi Ikawa	TEL [phone]
Scheduled date of Ordinary General Meeting of Shareholders:	June 29, 2021
Scheduled date of filing financial report:	June 29, 2021
Scheduled date of the commencement of dividend payments:	June 30, 2021
Availability of supplementary material on annual financial results:	Yes
Schedule of annual financial results briefing session:	Scheduled (for institutional investors and analysts)

(Amounts are rounded down to millions of yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020-March 31, 2021)

(1) Consolidated Operating Results

(The percentages indicate the percentage increase or decrease compared to the same period of the previous fiscal year.)

	Net sales			Operating profit	Ordinary profit		Profit attributable to
					owners of parent
Fiscal year ended	Millions of yen		%		Millions of yen	%	Millions of yen	%		Millions of yen	%
March 31, 2021	562,928		3.0		36,873	20.4		34,478	22.6		22,115	15.2
March 31, 2020	546,433		2.3		30,628	152.7		28,111	185.6		19,199	308.8
Note: Comprehensive income
Fiscal year ended March 31, 2021		19,987	million yen		48.3%
Fiscal year ended March 31, 2020		13,476	million yen		751.4%
	Basic earnings	Diluted earnings	Return on equity	Ordinary profit to	Operating profit to
	per share		per share					total assets			net sales
Fiscal year ended	Yen			Yen			%			%		%
March 31, 2021	138.73		133.25			10.1			4.3		6.6
March 31, 2020	127.91		115.18			10.0			3.7		5.6

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio	Net assets per share
	Millions of yen		Millions of yen	%	Yen
As of March 31, 2021	849,801		246,788	28.2	1,440.33
As of March 31, 2020	763,059		209,536	26.1	1,319.57
Reference: Equity	As of March 31, 2021	239,232	million yen
	As of March 31, 2020	199,133 million yen

(3) Consolidated Cash Flow

	Net cash provided by	Net cash provided by	Net cash provided by	Cash and cash
	(used in)	(used in)	(used in)	equivalents at end of
	operating activities	investing activities	financing activities	period
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
March 31, 2021	64,210	(103,702)	63,589	130,301
March 31, 2020	68,012	(47,869)	(14,049)	109,384

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2. Dividends

			Annual dividends per share			Dividend	Dividends to
	1st quarter	2nd quarter	3rd quarter	Fiscal year	Total	Total dividends	payout ratio	net assets
		end	end	end	end		(Consolidated)	(Consolidated)
Fiscal year ended		Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
March 31, 2020		－	5.00	－	8.50	13.50	2,045	10.6	1.1
March 31, 2021		－	7.00	－	10.00	17.00	2,841	12.3	1.2
Fiscal year ending			10.00		10.00	20.00
March 31, 2022		－	－		15.8
(Forecast)
Note: Breakdown of year	-end dividend for the	fiscal year ended March 31, 2020
Ordinary dividend 7.50 yen	Commemorative dividend 1.00 yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021-March 31, 2022)

(The percentages indicate the percentage increase or decrease compared to the same period of the previous fiscal year.)

		Net sales			Operating profit	Ordinary profit	Profit attributable to	Basic earnings
				owners of parent	per share
		Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen		%	Yen
Six months ending	290,000		10.9		15,000	6.2	13,000		6.2	8,000		(14.4)	48.17
September 30, 2021
Full fiscal year	600,000		6.6		38,000	3.1	35,000		1.5	21,000		(5.0)	126.43
4. Others
[1] Changes in significant subsidiaries during the period under review
(changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
		(Company name: Elleair International Turkey Kisisel Bakim Urunleri Uretim A.S.,
New		2 H&PC BRAZIL PARTICIPACOES S.A.)
Eliminated	-
[2] Changes in accounting principles, changes in accounting estimates and restatements
1)	Changes in accounting policies due to the revision of accounting standards:		No
2)	Changes in accounting policies other than 1) above:					No
3)	Changes in accounting estimates:								No
4)	Retrospective restatements:									No

1. Number of issued shares (common shares)
2. 1. Number of issued shares (including treasury shares) as of:

March 31, 2021	169,012,926 shares
March 31, 2020	154,531,953 shares
(ii) Number of treasury shares as of:
March 31, 2021	2,917,377 shares
March 31, 2020	3,624,453 shares
(iii) Average number of shares during the period:
Fiscal year ended March 31, 2021	159,414,928 shares
Fiscal year ended March 31, 2020	150,093,145 shares

The Company introduced a stock-based incentive system that uses a trust delivery system in the previous fiscal year, and the Company's shares held in the trust are recorded as treasury shares. And the Company introduced a "Trust-Type Employee Stock Ownership Plan (ESOP)" as an incentive plan by utilizing the Group's employee shareholding association in this fiscal year, and the Company's shares held in the trust are recorded as treasury shares.

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(Reference)

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020-March 31, 2021)

(1) Non-consolidated Operating Results

(The percentages indicate the percentage increase or decrease compared to the same period of the previous fiscal year.)

	Net sales	Operating profit	Ordinary profit	Profit
Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%
March 31, 2021	413,689	(1.7)	17,049	27.8	15,198		31.6	11,143	21.4
March 31, 2020	421,035	2.5	13,344	241.0	11,547		359.1	9,180	－
	Basic earnings per share	Diluted earnings per share
Fiscal year ended		Yen		Yen
March 31, 2021		69.67		66.91
March 31, 2020		60.88		54.79
(2) Non-consolidated Financial Position
	Total assets	Net assets	Equity ratio		Net assets per share
	Millions of yen	Millions of yen			%		Yen
As of March 31, 2021		731,744		171,785			23.5		1,034.26
As of March 31, 2020		669,573		141,287			21.1		931.88
Reference: Equity	As of March 31, 2021	171,785	million yen
	As of March 31, 2020	141,287 million yen

*This report is not required to be audited by certified public accountants or audit corporations.

*Regarding the appropriate use of financial results forecast and other notes

1. The earnings forecasts and other forward-looking statements herein are based on the information currently available to the Company and certain assumptions the Company considers reasonable. The actual results may differ significantly from these forecasts due to a wide range of factors.
2. The supplementary material on annual financial results will be posted on the Company's following website. https://www.daio-paper.co.jp/en/ir/ir_news/
   3.Monetary amounts of the accounts and other matters presented in the Company's consolidated financial statements were rounded off to the nearest specified unit previously. However, as of the fiscal year under review, amounts above one million yen are rounded down to the millions. Accordingly, comparative information has been adjusted to reflect this change.

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Consolidated Financial Statements

(1) Consolidated Balance Sheet

			(Millions of Yen)
		As of March 31, 2020	As of March 31, 2021
Assets
Current assets
Cash and deposits	113,054	130,643
Notes and accounts receivable - trade	92,741	100,019
Electronically recorded monetary claims - operating	10,982	8,005
Merchandise and finished goods	42,667	43,897
Work in process	6,766	7,317
Raw materials and supplies	27,864	28,635
Current portion of long-term loans receivable	－	3,000
Other	4,944	7,383
Allowance for doubtful accounts	(2)	(537)
Total current assets	299,018	328,364
Non-current assets
Property, plant and equipment
Buildings and structures	227,570	242,714
Accumulated depreciation	(148,742)	(153,900)
Buildings and structures, net	78,828	88,814
Machinery, equipment and vehicles	887,255	946,563
Accumulated depreciation	(747,628)	(764,677)
Machinery, equipment and vehicles, net	139,627	181,886
Land	81,889	82,146
Construction in progress	49,900	22,985
Other	25,039	31,662
Accumulated depreciation	(13,160)	(15,901)
Other, net	11,878	15,761
Total property, plant and equipment	362,123	391,594
Intangible assets
Goodwill	39,941	55,902
Other	16,935	29,296
Total intangible assets	56,876	85,199
Investments and other assets
Investment securities	23,182	24,431
Long-term loans receivable	3,823	－
Retirement benefit asset	844	1,523
Deferred tax assets	8,125	7,088
Other	9,922	11,631
Allowance for doubtful accounts	(1,039)	(156)
Total investments and other assets	44,859	44,519
Total non-current assets	463,859	521,313
Deferred assets	180	122
Total assets	763,059	849,801

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			(Millions of Yen)
		As of March 31, 2020	As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	53,135	64,662
Short-term borrowings	15,452	13,744
Current portion of bonds with share acquisition rights	22,540	－
Current portion of bonds payable	－	15,000
Current portion of long-term borrowings	53,724	64,813
Accounts payable - other	39,215	40,191
Current portion of long-term accounts payable-facilities	537	388
Income taxes payable	10,946	6,492
Provision for bonuses	5,216	5,786
Provision for bonuses for directors (and other officers)	129	169
Other	14,535	15,677
Total current liabilities	215,433	226,925
Non-current liabilities
Bonds payable	60,300	45,000
Long-term borrowings	242,100	284,025
Long-term accounts payable - facilities	568	193
Retirement benefit liability	23,254	23,110
Provision for retirement benefits for directors (and other officers)	194	97
Provision for share awards	47	106
Provision for environmental measures	24	16
Other	11,599	23,536
Total non-current liabilities	338,089	376,086
Total liabilities	553,523	603,012
Net assets
Shareholdersʼ equity
Share capital	43,449	53,884
Capital surplus	44,095	55,901
Retained earnings	116,818	136,579
Treasury shares	(3,064)	(4,090)
Total shareholdersʼ equity	201,297	242,275
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,799	4,226
Deferred gains or losses on hedges	9	22
Foreign currency translation adjustment	(5,443)	(8,645)
Remeasurements of defined benefit plans	470	1,353
Total accumulated other comprehensive income	(2,163)	(3,042)
Non-controlling interests	10,402	7,556
Total net assets	209,536	246,788
Total liabilities and net assets		763,059	849,801

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