Consolidated Financial Summary (For the First Half Ended September 30, 2015 (IFRS basis)) Listed company: Hitachi Chemical Co., Ltd. October 26, 2015 (Code number: 4217 Stock exchange: Tokyo) (URL http://www.hitachichem.co.jp/english/index.html) Representative: Kazuyuki Tanaka Position of the person: President, Chief Executive Officer and Director Person in charge of the reference: Akihiko Takamatsu Position of the person: General Manager, Corporate Communication Center Tel: 81355337144 Date of the release of quarterly report (schedule): November 12, 2015 Date of the start of dividend payment: November 27, 2015 Creates supplemental explanatory materials for quarterly financial summaries: Yes (Amounts rounded to the nearest million yen) 1. Consolidated Financial Highlights for the First Half Ended September 30, 2015 (April 1, 2015 through September 30, 2015) (1) Consolidated Financial Results (% indicates the rate of +/ compared with the same term of the previous fiscal year) Revenue Operating income Income before income taxes Net income Net income attributable to owners of the parent Comprehensive income First half ended: Million yen % Million yen % Million yen % Million yen % Million yen % Million yen % Sep. 30, 2015 275,604 9.3 23,340 25.3 23,612 14.8 17,071 23.6 16,669 20.7 9,183 (56.8) Sep. 30, 2014 252,068 18,629 20,567 13,811 13,815 21,275 Basic earnings per share Diluted earnings per share First half ended: Yen Yen Sep. 30, 2015 Sep. 30, 2014 80.05 66.34 Note: Basic earnings per share is calculated based on net income attributable to owners of the parent. Note: From the first quarter ended June 30, 2015, royalty income, which was previously included in other income on the consolidated statements of income, will be included in revenues. Figures for the first half ended September 30, 2014, have been restated to reflect this change. (2) Consolidated Financial Position Total assets Total equity Total equity attributable to owners of the parent Ratio of equity attributable to owners of the parent to total assets As of Sep. 30, 2015 As of Mar. 31, 2015 2. Dividend Million yen Million yen Million yen % 534,772 361,126 353,472 66.1 542,535 357,334 348,241 64.2 Dividend per Share 1st Quarter 2nd Quarter 3rd Quarter YearEnd Total Yen Yen Yen Yen Yen March, 2015 March, 2016 March, 2016 (Forecast) 18.00 25.00 18.00 25.00 36.00 50.00 Note: Revision of the latest dividend forecast: Yes 3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2016 (April 1, 2015 through March 31, 2016) (% indicates the rate of +/ compared with the previous fiscal year) Net income Revenue Operating income Income before attributable to Basic earnings Net income income taxes owners of the per share parent Million yen % Million yen % Million yen % Million yen % Million yen % Yen Fiscal year 550,000 4.4 50,000 71.1 51,500 48.4 36,800 60.9 36,000 59.4 172.88 Note: Revision of the latest consolidated financial forecast: Yes
* Notes (1) Changes in significant subsidiaries during the term (changes in specified subsidiaries resulting in the change in scope of consolidation): Yes Exclusion: 1 company (Hitachi Chemical Research Center, Inc.) (2) Changes of Accounting Policies Applied, Changes in Accounting Estimates (a) Changes of accounting policies required by IFRS: None (b) Changes of accounting policies other than (a): None (c) Changes in accounting estimates: None (3) Number of Shares Issued (Common Stock): (a) Number of shares at the end of the term (Including treasury stock): (b) Number of treasury stock at the end of the term: (c) Average number of shares during the term: Sep. 30, 2015: 208,364,913 shares Mar. 31, 2015: 208,364,913 shares Sep. 30, 2015: 131,245 shares Mar. 31, 2015: 128,401 shares Apr. Sep. 2015: 208,234,800 shares Apr. Sep. 2014: 208,241,676 shares * Information regarding the implementation of quarterly review procedures These quarterly financial results are not subject to quarterly review procedures. Thus, at the time of disclosure of these financial results, the quarterly financial statement review procedures based on the Financial Instruments and Exchange Law, have not been completed. * Explanation on the appropriate use of financial forecasts and other important items The financial forecasts shown on this report are estimated based on information available as of the issuing date of this report, and therefore the actual results for the future terms may differ from these forecasted figures due to various unknown factors.
Condensed Quarterly Consolidated Financial Statements (1) Condensed Quarterly Consolidated Statement of Financial Position As of March 31, 2015 As of September 30, 2015 Assets Current assets Cash and cash equivalents 88,997 100,315 Trade receivables 123,949 118,609 Inventories 61,909 59,310 Other financial assets 23,659 14,490 Other current assets 2,324 3,369 Subtotal 300,838 296,093 Assets held for sale 1,992 Total current assets 300,838 298,085 Noncurrent assets Property, plant and equipment 179,196 173,948 Intangible assets 12,301 12,666 Net defined benefit assets 10,093 10,770 Deferred tax assets 10,684 9,680 Investments accounted for using the equity method 5,216 6,705 Other financial assets 17,591 16,507 Other noncurrent assets 6,616 6,411 Total noncurrent assets 241,697 236,687 Total assets 542,535 534,772 1
As of March 31, 2015 As of September 30, 2015 Liabilities Current liabilities Trade payables 51,354 47,836 Bonds and borrowings 33,658 41,906 Accrued expenses 24,251 23,484 Income tax payables 6,758 5,660 Provisions 500 1,000 Other financial liabilities 19,702 15,158 Other current liabilities 1,471 1,281 Subtotal 137,694 136,325 Liabilities related to assets held for sale 1,299 Total current liabilities 137,694 137,624 Noncurrent liabilities Bonds and borrowings 26,619 15,822 Retirement and severance benefits 13,345 13,312 Provisions 1,143 1,174 Other financial liabilities 3,051 2,613 Other noncurrent liabilities 3,349 3,101 Total noncurrent liabilities 47,507 36,022 Total liabilities 185,201 173,646 Equity Common stock 15,454 15,454 Capital surplus 10,498 10,008 Treasury stock, at cost (213) (220) Retained earnings 287,498 300,813 Accumulated other comprehensive income 35,004 27,417 Total equity attributable to owners of the parent 348,241 353,472 Noncontrolling interests 9,093 7,654 Total equity 357,334 361,126 Total liabilities and equity 542,535 534,772 2
(2) Condensed Quarterly Consolidated Statement of Income and Condensed Quarterly Consolidated Statement of Comprehensive Income (Condensed quarterly consolidated statement of income) (First half ended September 30, 2015) First half ended Sep. 30, 2014 (Apr. 1, 2014 Sep. 30, 2014) First half ended Sep. 30, 2015 (Apr. 1, 2015 Sep. 30, 2015) Revenues 252,068 275,604 Cost of sales (190,383) (202,925) Gross profit 61,685 72,679 Selling, general and administrative expenses (44,441) (48,207) Other income 3,049 1,637 Other expenses (1,664) (2,769) Operating income 18,629 23,340 Financial income 1,371 622 Financial expenses (854) (1,970) Share of profits of investments accounted for using the equity method 1,421 1,620 Income before income taxes 20,567 23,612 Income taxes (6,756) (6,541) Net income 13,811 17,071 Net income attributable to: Owners of the parent 13,815 16,669 Noncontrolling interests (4) 402 Earnings per share attributable to owners of the parent (yen) Basic 66.34 80.05 Diluted 3
(Condensed quarterly consolidated statement of comprehensive income) (First half ended September 30, 2015) First half ended Sep. 30, 2014 (Apr. 1, 2014 Sep. 30, 2014) First half ended Sep. 30, 2015 (Apr. 1, 2015 Sep. 30, 2015) Net income 13,811 17,071 Other comprehensive income (OCI) Items that cannot be reclassified into profit or loss Net gains and losses from financial assets measured at fair value through OCI 466 (210) Remeasurements of defined benefit obligations Total items that cannot be reclassified into profit or loss 466 (210) Items that can be reclassified into profit or loss Foreign currency translation adjustments 6,847 (7,535) Cash flow hedges (23) (114) Share of OCI of investments accounted for using the equity method 174 (29) Total items that can be reclassified into profit or loss 6,998 (7,678) Other comprehensive income (OCI) 7,464 (7,888) Comprehensive income 21,275 9,183 Comprehensive income attributable to: Owners of the parent 20,914 9,476 Noncontrolling interests 361 (293) 4
(3) Condensed Quarterly Consolidated Statement of Cash Flows First half ended Sep. 30, 2014 (Apr. 1, 2014 Sep. 30, 2014) First half ended Sep. 30, 2015 (Apr. 1, 2015 Sep. 30, 2015) Cash flows from operating activities Net income 13,811 17,071 Depreciation and amortization 13,003 14,778 Income tax expense 6,756 6,541 Interest and dividend income (431) (530) Interest expenses paid 833 796 Share of profits of investments accounted for using the equity method (1,421) (1,620) (Increase) decrease in trade receivables (2,855) 2,951 (Increase) decrease in accounts receivables other (8) 5,566 (Increase) decrease in inventories (4,742) 988 Increase (decrease) in trade payables 1,014 (1,936) Increase (decrease) in retirement and severance benefits (408) (199) Other (1,257) (1,032) Subtotal 24,295 43,374 Interest and dividends received 517 549 Interest paid (735) (873) Income taxes paid (5,041) (6,883) Income taxes refund 1,449 1,012 Net cash provided by operating activities 20,485 37,179 Cash flows from investing activities Expenses for property, plant and equipment acquired (11,635) (14,083) Income from sale of property, plant and equipment 251 531 Proceeds from redemption and sale of investments in securities 1,275 165 Purchase of investments in subsidiaries (900) Expenses for investment securities acquired (1,147) (704) Proceeds from withdrawal of deposits paid in subsidiaries and affiliates 7,000 Other (942) 556 Net cash used in investing activities (5,198) (14,435) Cash flows from financing activities Net increase (decrease) in shortterm debt 3,221 193 Proceeds from longterm debt 658 Payments on longterm debt (525) (1,498) Purchase of shares of consolidated subsidiaries from noncontrolling interest holders (2,605) Dividends paid to stockholders (3,748) (3,748) Dividends paid to noncontrolling interests (134) (218) Other (200) (264) Net cash used in financing activities (728) (8,140) Effect of exchange rate changes on cash and cash 2,775 (3,012) equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Decrease in cash and cash equivalents resulting from transfer to assets held for sale Cash and cash equivalents at end of year 17,334 11,592 87,652 88,997 (274) 104,986 100,315 5
(4) Items Regarding Condensed Quarterly Consolidated Financial Statements (Notes on premise of going concern) Not applicable (Segment information) Information related to revenue and profit (loss) for each reportable segments First half ended September 30, 2014 (April 1, 2014 through September 30, 2014) Item Functional Materials Reportable segment Advanced Components and Systems Total Adjustment (Note) Total Revenue Revenue from outside customers 139,007 113,061 252,068 252,068 Intersegment revenue 4,068 882 4,950 (4,950) Total 143,075 113,943 257,018 (4,950) 252,068 Segment profit (loss) 15,087 3,563 18,650 (21) 18,629 Financial income 1,371 Financial expenses (854) Share of profits of investments accounted for using the equity method 1,421 Income before income taxes 20,567 Note: Segment profit adjustments are the amounts eliminated for intersegment transactions. First half ended September 30, 2015 (April 1, 2015 through September 30, 2015) Item Functional Materials Reportable segment Advanced Components and Systems Total Adjustment (Note) Total Revenue Revenue from outside customers 139,645 135,959 275,604 275,604 Intersegment revenue 3,621 1,435 5,056 (5,056) Total 143,266 137,394 280,660 (5,056) 275,604 Segment profit (loss) 19,959 3,364 23,323 17 23,340 Financial income 622 Financial expenses (1,970) Share of profits of investments accounted for using the equity method 1,620 Income before income taxes 23,612 Note: Segment profit adjustments are the amounts eliminated for intersegment transactions. 6