Hitachi Construction Machinery : Notice Concerning Difference between Forecast and Actual Financial Result

April 27, 2021

Corporate name	Hitachi Construction Machinery Co., Ltd.
	(Code: 6305, First Section of the Tokyo Stock Exchange)
Name of representative	Kotaro Hirano
	President and Executive Officer
Our parent company	Hitachi, Ltd. (Code: 6501)
Name of representative	Toshiaki Higashihara
	Executive Officer, President & CEO

Notice Concerning Difference between Forecast and Actual Financial Result

Hitachi Construction Machinery Co., Ltd. hereby announces that the actual financial result for the FY2020 reported today is different from the forecast announced on May 28, 2020. The details are as follows.

Consolidated earnings for the FY2020 (April 1, 2020 to March 31, 2021)

			Adjusted		Income	Net	income		Net income
				attributable to
		Revenue	Operating	before	attributable to
		Operating		owners of
		income	income	owners of
			Income		the parent
				taxes	the	parent
					per	share (basic)
Previous forecast	(A)	¥Millions	¥Millions	¥Millions	¥Millions		¥Millions		Yen
770,000	40,000	36,000	34,000		20,000		94.05
Result (B)		813,331	32,710	28,235	25,578		10,340		48.62
Change (B)-(A)		43,331	(7,290)	(7,765)	(8,422)		(9,660)
% Change		5.6	(18.2)	(21.6)	(24.8)		(48.3)
(Reference)		¥Millions	¥Millions	¥Millions	¥Millions		¥Millions		Yen
FY2019		931,347	76,618	72,849	67,103		41,171		193.61

Reasons for the differences

Sales revenues for the year ended March 31, 2021 (April 1, 2020 to March 31, 2021) increased compared with the forecast. Because demand for construction machinery mainly in China was higher than we had expected in the second half of the fiscal year, sales revenue of new machinery increased, which boosted sales revenue.

On the other hand, adjusted operating income fell short of the forecast due to lower sales revenue in the highly profitable mining new machinery sales and parts and service business compared to the forecast, and because the increase in the manufacturing cost ratio accompanying the production reconciliation in the first half of the fiscal year could not be recovered in the second half of the fiscal year.

Net income attributable to owners of the parent company decreased mainly due to a decrease in adjusted operating income, a decrease in equity in earnings of affiliates of overseas bases, and an increase in contribution to non-controlling interests.

For details, please refer to the "Consolidated Financial Results for the Fiscal Year Ended March 31, 2021" announced on April 27, 2021.