Consolidated Results for the Third Quarter of the Fiscal Year Ending March 31, 2017 January 25, 2017 0 Hitachi Chemical Co., Ltd. 2011. All Rights Reserved.
FY16/3Q Results 1 Item 16/3Q Net income: Attributable to owners of the parent FY16/3Q vs. FY15/3Q 16/1Q ~3Q (Billion yen) FY16/1Q~3Q vs. FY15/1Q~3Q Revenue 143.6 103 % 400.9 97 % Operating Income 15.3 110 % 40.7 109 % Net Income 14.6 128 % 31.3 112 % Operating Income without other income 16.2 111 % 40.8 105 % and expenses Exchange rate (1US$) Average 15/3Q 121.50 16/3Q 109.30 End of period 15/3Q 120.61 16/3Q 116.49
FY16/3Q Results by Segment : Revenue (1) Functional Materials 72.6 billion (YoY: 105%) Electronics Materials: Sales of die bonding materials were up due to increased semiconductor packaging-related demand. Inorganic Materials: Sales of anode materials for eco-friendly automobiles were up. Polymer Science Materials: Sales of anisotropic conductive films for displays for use in smartphones increased, but overall sales decreased due to negative foreign exchange influences. Printed Wiring Board Materials: Sales of copper-clad laminates were relatively unchanged while sales of photosensitive dry films decreased. 2
FY16/3Q Results by Segment : Revenue (2) 3 Advanced Components and Systems 71.1 billion (YoY:101%) Automotive Products: Sales were relatively unchanged as increased new order demand counteracted the impacts of negative foreign exchange influences. Energy Storage Devices and Systems: Sales of uninterruptible power supply batteries from overseas were up, but overall sales were relatively unchanged due to lower sales of products for use in new automobiles in Japan and the impacts of negative foreign exchange influences.
FY16/3Q Revenue by Functional Materials (1) Revenue vs. FY15/3Q Functional Materials Electronics Materials 72.6 billion 105 % 23.8 113 Epoxy Molding Compounds 102 Die Bonding Materials 132 CMP Slurry 114 Inorganic Materials 6.0 113 Carbon Anode Materials for LiB 127 Polymer Science Materials 15.9 94 Anisotropic Conductive Films 84 Printed Wiring Board Materials 18.0 95 Copper-Clad Laminates 100 Photosensitive Dry Films 87 4
FY16/3Q Revenue by Functional Materials (2) vs.fy15/1q benchmark 120 Printed Wiring Board Materials Polymer Science Materials Electronics Materials 100 5 80 Inorganic Materials 15/1Q 15/2Q 15/3Q 15/4Q 16/1Q 16/2Q 16/3Q
FY16/3Q Revenue by Advanced Components and Systems (1) Advanced Components and Systems Revenue vs. FY15/3Q 71.1 billion 101 % Automotive Products 32.9 101 Plastic Molded Products 105 Friction Materials 96 Powder Metal Products 100 Energy Storage Devices and Systems 28.2 100 Automobile Batteries 96 Industrial Batteries 105 Electronic Components 9.4 108 6
FY16/3Q Revenue by Advanced Components and Systems (2) vs.fy15/1q benchmark 140 100 Automotive Products Energy Storage Devices and Systems Electronic Components 7 60 15/1Q 15/2Q 15/3Q 15/4Q 16/1Q 16/2Q 16/3Q
Explanation of Operating Income Deviation (1) FY15/3Q results vs. FY16/3Q results 13.9 Operating Income -1.5 Sales Prices -1.6 Foreign Exchanges -1.2 Fixed Costs -0.7 Product mix & etc. 0 Materials 3.3 Cost Reductions 3.4-0.3 Sales Volumes Other Income/expenses (Billion yen) 15.3 Operating Income FY15/3Q +1.4 billion yen FY16/3Q 8
Explanation of Operating Income Deviation (2) FY15/3Q results vs. FY16/3Q results (Billion yen) FY15/3 Q Sales Volumes Sales Prices Foreign Exchanges Materials Cost Reductions Fixed Costs Product mix & etc. Other Income/ expense s FY16/3 Q Functional Materials 11.3 2.3-1.0-1.1 0.4 1.9-1.0-0.7-0.6 11.5 Advanced Components and Systems 2.6 1.1-0.5-0.5-0.4 1.4-0.2 0.0 0.3 3.8 Total 13.9 3.4-1.5-1.6 0.0 3.3-1.2-0.7-0.3 15.3 9
FY16 Forecasts Item (*1) Net income: Attributable to owners of the parent (*2) publication in October Revised (Billion yen) Revenue 546.5 520.0 550.0 101 % 106 % Operating Income Net Income Operating Income without other income and expenses FY15 results FY16 forecasts FY16 vs. FY15 Based on a comparison of publication in Oct. 53.0 50.0 53.0 100 % 106 % 38.5 35.0 39.5 103 % 113 % 49.9 51.0 54.0 108 % 106 % Exchange rate (1US$=) 10 Average 120.14 102.65 107.65 End of period 112.68 100.00 110.00
FY16 Forecasts by Segment Functional Materials 270.0 billion (YoY: 100%) Sales were relatively unchanged as a result of strong semiconductor packaging-related demand. Advanced Components and Systems 280.0 billion (YoY:101%) Sales were relatively unchanged following increased sales of industrial batteries and the benefits of consolidating FIAMM Energy Technology S.p.A. 11
FY16 Revenue (forecasts) by Functional Materials (1) Revenue vs. FY15 Functional Materials Electronics Materials 270.0 billion 100 % 89.6 107 Epoxy Molding Compounds 98 Die Bonding Materials 127 CMP Slurry 100 Inorganic Materials 24.3 108 Carbon Anode Materials for LiB 118 Polymer Science Materials 58.7 93 Anisotropic Conductive Films 87 Printed Wiring Board Materials 70.8 96 Copper-Clad Laminates 103 Photosensitive Dry Films 87 12
FY16 Revenue (forecasts) by Functional Materials (2) vs.fy15/1h benchmark 120 Inorganic Materials Electronics Materials 100 13 80 Printed Wiring Board Materials Polymer Science Materials 15/1H 15/2H 16/1H 16/2H
FY16 Revenue (forecasts) by Advanced Components and Systems (1) Revenue vs. FY15 Advanced Components and Systems 280.0 billion 101 % Automotive Products 123.2 96 Plastic Molded Products 95 Friction Materials 92 Powder Metal Products 98 Energy Storage Devices and Systems 116.7 110 Automobile Batteries 120 Industrial Batteries 108 Electronic Components 35.5 96 14
FY16 Revenue (forecasts) by Advanced Components and Systems (2) vs.fy15/1h benchmark 140 Energy Storage Devices and Systems 120 Electronic Components Automotive Products 100 15 80 15/1H 15/2H 16/1H 16/2H
Explanation of Operating Income Deviation (forecasts) (1) FY15 results vs. FY16 forecasts (Billion yen) 53.0 Operating Income -7.6 Sales Prices -6.6 Foreign Exchanges -4.5 Fixed Costs -0.7 Product mix & etc. 2.6 Materials 9.6 Sales Volumes 11.5-4.3 Cost Reductions Other Income/expenses 53.0 Operating Income FY15 ±0 billion yen FY16 16
Explanation of Operating Income Deviation (forecasts) (2) FY15 results vs. FY16 forecasts (Billion yen) FY15 Sales Volumes Sales Prices Foreign Exchanges Materials Cost Reductions Fixed Costs Product mix & etc. Other Income/ expenses FY16 Functional Materials 38.7 7.3-4.3-4.5 2.0 6.8-2.3-0.1-1.1 42.5 Advanced Components and Systems 14.3 2.3-3.3-2.1 0.6 4.7-2.2-0.6-3.2 10.5 Total 53.0 9.6-7.6-6.6 2.6 11.5-4.5-0.7-4.3 53.0 17
Purchase Price Trend (Main Materials) (vs.fy15 benchmark) Item FY15 16/1Q 16/2Q 16/3Q 16/4Q forecasts Crude Oil (Dubai) 100 95 95 106 121 Lead 100 93 88 96 100 Epoxy Resin 100 100 100 100 100 PET Film 100 100 100 100 100 Methyl Methacrylate 100 94 94 99 99 Glass Cloth 100 100 100 103 109 Copper Foil 100 89 92 106 117 18
Topics Conclusion of FIAMM Energy Technology S.p.A. share acquisition agreement Business transfer of optically clear adhesive film FINESET Commencement of mass production and sales of quantum dot film by the end of FY2016 Decide relocation to Shin-Kawasaki and functional reinforcement of Open Laboratory Decide establishment of a facility in Yokohama for regenerative medicine business 19
The new site of Energy Storage Devices and Systems 20 FIAMM Energy Technology S.p.A. Principal lines of business Manufacture and sales of automotive and industrial lead-acid batteries Price of shares acquired 10.2 billion yen (estimated) Shareholders Hitachi Chemical FIAMM S.p.A. 51% 49% Share transfer February 2017 (planned) Item Total net assets Total assets (million ) Net sales 426 Operating income Ordinary income FY2015 19 12 Net income 8 50 260
(Notes) These materials contain projections based on information available at the time of formulation. Various factors may cause actual results in the future to differ. These materials may not be freely copied or redistributed without prior permission. 21 Hitachi Chemical Co., Ltd. 2011. All Rights Reserved.