Hitachi Metals, Ltd.

Financial Results for the First Half of

Financial Year 2022

(April 1 to September 30, 2022)

[Table of Contents]

  1. Overview of Operating Results
  2. Operating Results by Segment
  3. Financial Condition
  4. Consolidated Cash Flows
  5. Status of Ownership Transition

6. Change of Company Name

October 26, 2022

© Hitachi Metals, Ltd. 2022 All rights reserved.

1. Overview of Operating Results

1-1. Overview of the First Half of FY2022 (1)

Management environment

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

  1. Material prices remained high due to the impact of the depreciation of the yen to its lowest level in decades.
  2. The impact of shortage in components and materials continued, and supply-demand conditions for international logistics remained tight.
  3. There were ongoing effects of China's lockdowns due to its zero COVID-19 policy as well as the conflict in Ukraine.

Revenues

  1. Increased year on year due to the impact from a rise in raw material prices (sliding-scale rate material price system) and the depreciation of the yen.
  2. Trends in business categories (YoY)

[Automobiles] As for volume trends by product group, the volume increased for automotive casting products due to demand

recovery in the North American market. The volume decreased for industrial equipment materials and

magnetic materials due to the impact of production adjustments by automobile manufacturers. Demand for

automotive electronic components has started to recover since the beginning of 2Q.

[Aircraft]

Demand related to small- and medium-sized passenger aircraft rebounded significantly.

[FA / robots]

Capital expenditure demand related to manufacturing, mainly for automobiles and semiconductors,

increased.

[Electronics]

Demand for use in telecommunications equipment and automobiles increased.

Adjusted operating income / Net income*

Adjusted operating income and net income increased by ¥9.8 billion and ¥18.0 billion, respectively, year on year, reflecting a rise in profit as a result of cost reduction measures and the depreciation of the yen, despite a decline in profit due to soaring raw material prices and electricity and transportation costs.

Sales prices are being revised in response to an increase in expenses and energy cost due to soaring resource prices.

Full-year forecast for FY2022

Sales prices are being revised and cost reduction measures implemented, while effect of the depreciation of the yen is expected to offset the impact of demand trending slightly lower than expected.

The full-year forecast remains unchanged from the previous forecast.

* Net Income attributable to Shareholders of the Parent Company

1

© Hitachi Metals, Ltd. 2022 All rights reserved.

1-2. Operating Results

FY2021

FY2022

1H

Full-year

¥ billions

1Q (Apr - Jun)

2Q (Jul - Sep)

1H (A)

Full-year (B)

1Q (Apr - Jun)

2Q (Jul - Sep)

1H (C)

Full-year (D)

Year-on-Year

Year-on-Year

(assuming 2H rate)

(Italic letters indicate

US$1 = ¥109

US$1 = ¥110

US$1 = ¥110

US$1 = ¥112

US$1 = ¥130

US$1 = ¥138

US$1 = ¥134

US$1 = ¥140

(C/A-1)*100[%]

(D/B-1)*100[%]

profit margin.)

€1 = ¥132

€1 = ¥130

€1 = ¥131

€1 = ¥131

€1 = ¥138

€1 = ¥139

€1 = ¥139

€1 = ¥140

or C-A

or D-B

1 yuan = ¥17.0

1 yuan = ¥17.0

1 yuan = ¥17.0

1 yuan = ¥17.5

1 yuan = ¥19.6

1 yuan = ¥20.2

1 yuan = ¥19.9

1 yuan = ¥20.0

Revenues

226.9

229.5

456.4

942.7

276.8

291.9

568.7

1,100.0

+25%

+17%

Adjusted

3.7%

8.5

3.0%

6.8

3.4%

15.3

2.8%

26.8

4.3%

11.8

4.6%

13.3

4.4%

25.1

6.4%

70.0

+9.8

+43.2

operating income*

1

IFRS operating income*2

1.9%

4.2

4.6%

10.6

3.2%

14.8

2.8%

26.7

3.5%

9.8

3.9%

11.4

3.7%

21.2

-

+6.4

-

Income

4.3

11.0

15.3

32.7

19.9

18.5

38.4

41.5

+23.1

+8.8

before income taxes

Net income attributable

3.0

8.3

11.3

12.0

15.1

14.2

29.3

30.0

+18.0

+18.0

to shareholders

of the parent company

*1 Adjusted operating income = Revenues - Sales cost - Selling, general, & administrative expenses *2 Income before income tax for 1H of FY2022 includes ￥12.2 billion in foreign exchange gains.

Sales by region

¥ billions

Japan

North America

China

Other Asian

Europe

Others

countries

1H,

Revenues

196.5

131.6

41.2

56.9

21.1

9.1

FY2021

Sales ratio

43%

29%

9%

12%

5%

2%

1H,

Revenues

211.5

194.7

48.3

74.2

27.3

12.7

FY2022

Sales ratio

37%

34%

8%

13%

5%

3%

Revenues year-on-year

+8%

+48%

+17%

+30%

+29%

+40%

2

© Hitachi Metals, Ltd. 2022 All rights reserved.

1-3. Factors Behind Increase / Decrease in Revenues and Adjusted Operating Income (Year-on-Year)

[Revenues]

¥ billions

Specialty Steel Products

-7.4

568.7

Functional Components and Equipment

7.9

Magnetic Materials and Applications

/ Power Electronics

-0.2

Wires, Cables, and Related Products

Raw materials

456.4

-0.8

Foreign exchange

sliding-scale

price system

Revenues,

/ Price revision

product mix, etc.

1H, FY2021

[Adjusted operating income]

1H, FY2022

Specialty Steel Products

-3.0

Raw materials prices,

Functional Components and Equipment

3.2

electricity, transportation

Magnetic Materials and Applications

costs, and others

/ Power Electronics

-0.5

Wires, Cables, and Related Products

(including revisions

0.2

of sales prices)

Foreign exchange

Cost reduction

and others

Revenues,

product mix, etc.

1H, FY2021

1H, FY2022 3

© Hitachi Metals, Ltd. 2022 All rights reserved.

Hitachi Metals, Ltd.

Financial Results for the First Half of

Financial Year 2022

(April 1 to September 30, 2022)

[Table of Contents]

2. Operating Results by Segment

© Hitachi Metals, Ltd. 2022 All rights reserved.

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Hitachi Metals Ltd. published this content on 26 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2022 10:17:04 UTC.