27.Jul.2022:Financial Results for the 3-month Period of Fiscal Year 2022 Ended June 30, 2022（PDF：）

Hitachi Metals, Ltd.

Financial Results for the First Three Months

of Fiscal Year 2022 (April 1 to June 30, 2022)

[Table of Contents]

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

5. Tender Offer Bid (TOB)	July 27, 2022

© Hitachi Metals, Ltd. 2022 All rights reserved.

1. Overview of Operating Results

1-1. Overview of the First Quarter, FY2022

Management environment

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

1. While there are signs of material prices peaking out of the surge, 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 as well as international logistics disruption continued
3. The uncertain situation of the outlook for the demand continued, including the spread of COVID-19 and the situation 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 fields (YoY)

[Automobiles]	As for volume trends by product group, while the volume increased for automotive casting
	products due to demand recovery in the North American market, the volume decreased for
	Industrial equipment materials, magnetic materials, and automotive electronic components
	due to the impact of production adjustments by automobile manufacturers reflecting
	semiconductor shortages and China's lockdowns, among other factors.
[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.
[Semiconductors]	Demand for use in telecommunications equipment and automobiles increased

Adjusted operating income / Net income*

Adjusted operating income and net income increased by ¥3.3 billion and ¥12.1 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 revenues, sales portfolio, etc. as well as 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.	1

* Net income attributable to shareholders of the parent company

© Hitachi Metals, Ltd. 2022 All rights reserved.

1-2. Operating Results

						FY2021								FY2022
	¥ billions	1Q (Apr - Jun)(A) 2Q (Jul - Sep) 3Q (Oct - Dec) 4Q (Jan - Mar)		Full-year	1Q (Apr - Jun)(B)	Differences	Full-year
			Forecasts
	Italic letters indicate	US$1 = ¥109	US$1 = ¥110	US$1 = ¥114	US$1 = ¥116		US$1 = ¥112	US$1=¥130	Year-on-Year	US$1 = ¥120
	profit margin.	€1 = ¥132	€1 = ¥130	€1 = ¥130	€1 = ¥130		€1 = ¥131	€1=¥138	(B/A-1)*100[%]	€1 = ¥130
		1 yuan = ¥17.0	1 yuan = ¥17.0	1 yuan = ¥17.8	1 yuan = ¥18.3		1 yuan = ¥17.5	1 yuan=¥19.6	or B-A	1 yuan = ¥19.0
	Revenues	226.9	229.5	234.4	251.9		942.7	276.8	+22%		1,100.0
	Adjusted	3.7%	8.5	3.0%	6.8	2.3%	5.3	2.5%	6.2		2.8%	26.8	4.3%	11.8	+3.3		6.4%	70.0
	operating income*
	IFRS	1.9%	4.2	4.6% 10.6	1.8%	4.2	3.1%	7.7		2.8% 26.7	3.5%	9.8	+5.6			-
	operating income
	Income		4.3		11.0		5.2	12.2			32.7		19.9	+15.6			41.5
	before income taxes
	Net income (loss)		3.0		8.3		2.2	-1.5			12.0		15.1	+12.1			30.0
	attributable to shareholders
	of the parent company
	*Adjusted operating income = Revenues - Sales cost - Selling, general, & administrative expenses						Foreign exchange gains:
															¥10.1 billion
	Sales by region
	¥ billions			Japan	North America	China	Other Asian countries Europe	Others
	1Q,	Revenues		98.4	65.1		19.5		29.0		10.4		4.5
	FY2021	Sales ratio	43%	29%		9%		13%		4%		2%
	1Q,	Revenues		103.3	95.2		22.9		36.1		13.3		6.0
	FY2022	Sales ratio	37%	35%		8%		13%		5%		2%
	Revenues Year-on-Year	+5%	+46%	+17%	+24%		+28%		+33%

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
		31.0	276.8
Specialty Steel Products	-3.2
Functional Components and Equipment	Foreign
	4.8
Magnetic Materials and Applications
	exchange
/ Power Electronics	0

Wires, Cables, and Related Products

-4.7	22.2

Revenues,

226.9 sales portfolio, etc.

Raw materials sliding-

scale price

system/price revision

-3.3

1Q, FY20211Q, FY2022

[ Adjusted		Specialty Steel Products	-1.2
		Functional Components and Equipment	Raw material prices,
operating income ] Magnetic Materials and Applications	2.0
		/ Power Electronics	-0.4	electricity, transportation	11.8
		Wires, Cables, and Related Products	-1.4	costs, and others	4.1
			2.1	(including revisions
	8.5	of sales prices)
	-1.0	Foreign	-1.9	Cost reduction
		Revenues,	exchange	and others
		sales portfolio, etc.
	1Q, FY2021				1Q, FY2022	3

© Hitachi Metals, Ltd. 2022 All rights reserved.

Hitachi Metals, Ltd.

Financial Results for the First Three Months

of Fiscal Year 2022 (April 1 to June 30, 2022)

[Table of Contents]

2. Operating Results by Segment

© Hitachi Metals, Ltd. 2022 All rights reserved.