Daido Steel Co., Ltd.
5471・Prime Market・Iron & Steel
Governance
The company has adopted the Audit and Supervisory Committee structure and has established a Nomination and Compensation Committee (with independent outside directors holding a majority) as an advisory body to the Board of Directors. In FY2026 (ending March 2026), the Board of Directors met 15 times, with all directors achieving a 100% attendance rate.
Risk Management
The company has established a CRM Committee (meeting nine times per year), chaired by the President and Representative Director, and has put in place a company-wide oversight framework based on its Risk Management Regulations. The internal audit department (CRM Department) conducts ongoing monitoring, and the company also operates an internal whistleblowing system with both internal and external hotlines.
Shareholder Returns
In October 2025, the company revised its shareholder return policy, introducing a DOE (Dividend on Equity ratio) of 2.5% as a floor indicator in addition to a payout ratio target of 30% or more. For FY2026 (ending March 2026), an interim dividend of ¥22 and a year-end dividend of ¥27 (total ¥49) will be implemented, resulting in a payout ratio of 30.3%. For FY2027 (ending March 2027), an annual dividend of ¥52 (interim ¥24, year-end ¥28) is planned. Share buybacks are also being continued (¥6,604 million acquired in the current fiscal year).
Dividend Policy
The basic policy is to maintain financial soundness, with a consolidated payout ratio target of 30% or more as a guideline. In addition, a DOE (Dividend on Equity ratio) of 2.5% is set as a floor indicator (shareholders' equity being equity attributable to owners of the parent, excluding other components of equity). Share buybacks will also be considered in light of progress on cash allocation. Retained earnings will be used for capital expenditures related to carbon neutrality initiatives and portfolio reform, research and development, human capital investment, and new business expansion. Dividends are paid twice a year, interim and year-end. This policy applies from FY2026 (ending March 2026).
ESG
In its climate change response, the company has set targets of a 50% reduction in CO2 emissions by 2030 (versus 2013) and carbon neutrality by 2050, achieving a 32% reduction in FY2025 (prior to third-party verification). In terms of human capital, the company was selected as a Health & Productivity Stock 2026, achieving a male childcare leave utilization rate of 52.1% and an engagement score of 81.2%. The ratio of cross-shareholdings to net assets stood at 18.0% at the end of FY2025, and the company continues to reduce this ratio with targets of 15% or below in FY2026 and 10% or below in the long term.
Last updated: June 30, 2026