Daido Steel Co., Ltd. (the “Company”) hereby announces that the Company today acquired all of the outstanding shares (excluding treasury stock) of Nippon Koshuha Steel Co., Ltd. (“Nippon Koshuha Steel”) from Kobe Steel, Ltd. (“Kobe Steel”) and made Nippon Koshuha Steel a wholly owned subsidiary of the Company as announced on May 12, 2025 in the Notice concerning Acquisition of All of the Shares of Nippon Koshuha Steel Co., Ltd. to Make it a Wholly Owned Subsidiary and concerning Change in a Specified Subsidiary. It was confirmed that prior to this share acquisition, the share exchange had been completed, through which Kobe Steel became a wholly owning parent company of Nippon Koshuha Steel and Nippon Koshuha Steel became a wholly owned subsidiary of Kobe Steel, and the payment of dividends in kind by Nippon Koshuha Steel to Kobe Steel, which was a transfer of all of issued shares in Koshuha-Foundry Co., Ltd. and assets held by Nippon Koshuha Steel in connection with its casting iron business to Kobe Steel, had been implemented.

Since the amount of capital of Nippon Koshuha Steel exceeds 10% of the Company’s capital and therefore Nippon Koshuha Steel falls under a specified subsidiary of the Company, the change in the specified subsidiary has been completed through this share acquisition.

Now that the Company has acquired Nippon Koshuha Steel as a wholly owned subsidiary, it will utilize the group’s management know-how related to the specialty steel business for Nippon Koshuha Steel’s specialty steel business. At the same time, the Company will seek to improve competitiveness, profitability, and corporate value of the Company group and Nippon Koshuha Steel’s specialty business, by generating the following synergies:

(i) Improvement of productivity, increase in production volumes and lot sizes, cost reduction, and avoidance of overlapping investments, by optimizing production allocation and layout
(ii) Presence improvement and sales expansion by utilizing the Company group’s extensive domestic and overseas networks
(iii) Optimization of resources by sharing or integrating operation functions, and integration of distribution

The Company will continue to support the future of people and society by pursuing the potential of materials in cooperation with the Nippon Koshuha Steel Group, while respecting the Nippon Koshuha Steel Group’s history that has been cultivated over many years and its management philosophy that is “to contribute to the building of an affluent society where lifestyles are harmonized with the environment, by supplying products with wide appeal.”