31.Jan.2022:Financial Results for the 9-month Period of Fiscal Year 2021 Ended December 31, 2021（PDF：）

Hitachi Metals, Ltd.

Financial Results for the First Nine Months of Fiscal Year 2021

(April 1 to December 31, 2021)

[Table of Contents]

1. Overview
2. Operating Results by Segment
3. Financial Condition
4. Consolidated Cash Flows
5. Operating Forecast for FY2021

January 31, 2022

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1. Overview

1-1. Overview of 1Q-3Q of FY2021 (Apr-Dec) (1)

Management environment

1. Economies continued to recover despite semiconductor shortage and international logistics disruption
2. Raw material prices and transportation cost soared
3. Labor shortage worsened in North America

*The contents on this page are based on estimates by Hitachi Metals, Ltd. which reference various materials.

Trends at Hitachi Metals (Revenues)

1. Revenues increased year on year
2. Trends in business fields (YoY)

[Automobiles]	Demand for molds and tool steel bounced back. Inventory levels in the market
	continue to trend below adequate levels.
	Sales of industrial equipment remained brisk. Sales of automotive casting,
	magnetic materials, and automotive electronic increased year on year, despite
	the impact of semiconductor shortage and lockdowns in Southeast Asia in 2Q.
[Aircraft]	Sales of aircraft-related materials remained weak due to a decrease in demand
	for aircraft components.
[FA / robots]	Capital expenditure demand related to manufacturing, mainly for automobiles
	and smartphones, increased.

[Semiconductors / smartphones] Demand for use in telecommunications equipment increased [Medical devices] Demand recovered for tubes used in catheters and demand was brisk for CT

scintillators.

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1-2. Overview of 1Q-3Q of FY2021 (Apr-Dec) (2)

Adjusted operating income (loss)

• Income rose year on year on the back of the recovery in demand and fixed costs reduction such as personnel expenses.
• Specialty Steel Products, Magnetic Materials and Applications / Power Electronics Materials exceeded forecasts.
• Negatively impacted by a decline in automotive-related demand due to semiconductor shortage and the deterioration in productivity of Functional Components and Equipment (Waupaca) owing to labor shortage in North America.

FY2021 Earnings forecasts

Revenues: Expected to increase slightly due to the anticipated effects of the cheaper yen and the sliding-scale raw material price system.

Adjusted operating income: Revised downward as Functional Components and Equipment is unlikely to achieve targets as in 3Q and raw material prices are expected to continue to soar.

While price correction efforts have been made for all products as required amid soaring raw material prices and other miscellaneous costs, major effects of such efforts are unlikely to be realized until the next fiscal year.

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1-3. Operating Results

¥ billions (Italic letters indicate profit margin.)

Revenues

Adjusted operating income (loss)*

IFRS operating income

Income (loss) before Income Taxes

Net Income (loss) attributable to shareholders of the parent company

	FY2020					FY2021
3Q (Oct - Dec)	1Q - 3Q (A)	1Q (Apr - Jun) 2Q (Jul - Sep) 3Q (Oct - Dec)	1Q - 3Q (B)
US$1 = ¥105	US$1 = ¥106	US$1 = ¥109	US$1 = ¥110	US$1 = ¥114	US$1 = ¥111
€1 = ¥125	€1 = ¥122	€1 = ¥132	€1 = ¥130	€1 = ¥130	€1 = ¥131
1 yuan = ¥15.8	1 yuan = ¥15.4	1 yuan = ¥17.0	1 yuan = ¥17.0	1 yuan = ¥17.8	1 yuan = ¥17.3
	200.6		541.4		226.9		229.5		234.4		690.8
1.9%	3.8	-1.6%	-8.6	3.7%	8.5	3.0%	6.8	2.3%	5.3	3.0%	20.6
0.3%	0.7	-7.0%	-37.9	1.9%	4.2	4.6%	10.6	1.8%	4.2	2.8%	19.0
	0.1		-39.4		4.3		11.0		5.2		20.5
	-0.5		-33.7		3.0		8.3		2.2		13.5

1Q-3QYear-on-Year

(B/A-1)*100[%] or B-A

+28% +29.2 +56.9 +59.9 +47.2

*Adjusted operating income (loss) = Revenues - Sales cost - Selling, general, & administrative expenses

Sales by region				Other Asian
	¥ billions	Japan	North America	China	Europe	Others
	countries
1Q-3Q,	Revenues	248.8	142.1	52.9	62.3	25.0	10.3
FY2020	Sales ratio	46%	26%	10%	11%	5%	2%
1Q-3Q,	Revenues	298.8	197.3	64.0	86.7	30.6	13.4
FY2021	Sales ratio	43%	29%	9%	13%	4%	2%
	Revenues Year-on-Year	+20%	+39%	+21%	+39%	+22%	+30%	3

© Hitachi Metals, Ltd. 2022 All rights reserved.

1-4. Factors Behind Increase/Decrease in Revenues and Adjusted Operating Income (Year-on-Year)

[Revenues]	Specialty Steel Products	20.5
	Functional Components and Equipment	21.2
	Magnetic Materials and Applications/
	Power Electronics	14.8
	Wires, Cables, and Related Products	9.2

	¥ billions
Decrease as a
result of
structural reforms	690.8

541.4		Foreign	Raw materials
	Sliding-scale raw
	Revenues,	exchange	material price system

sales portfolio, etc.

1Q-3Q, FY2020

1Q-3Q, FY2021

[Adjusted operating income]

Specialty Steel Products	9.1
Functional Components and Equipment	9.3
Magnetic Materials and Applications/
Power Electronics	7.8
Wires, Cables, and Related Products	2.5

	Revenues,	Soaring raw	Fixed cost	Cost
	sales portfolio, etc.	materials
	increase and	reduction
		prices
		other factors
1Q-3Q, FY2020	Foreign
exchange
				1Q-3Q, FY2021

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