Outline of Consolidated Financial Results for Fiscal 2012
May 10, 2013

Hitachi, Ltd.

Outline of Consolidated Financial Results for Fiscal 2012
May 10, 2013

Contents
1. Outline of Consolidated Financial Resultsfor Fiscal 2012
2. Outlook for Fiscal 2013
3. Overview by Business Segment© Hitachi, Ltd. 2013. All rights reserved.

2

Outline of Consolidated Financial Results for Fiscal 2012
May 10, 2013

Contents
1. Outline of Consolidated Financial Resultsfor Fiscal 2012
2. Outlook for Fiscal 2013
3. Overview by Business Segment© Hitachi, Ltd. 2013. All rights reserved.

3

1-1. Highlights of Fiscal 2012 Results

Decreased 6% YoY*1, rose 2% compared to previous forecast*2
Revenues

 Revenues were higher in the Social Infrastructure & Industrial Systems, Power Systems andInformation & Telecommunication Systems.
 All segments except the Electronic Systems & Equipment exceeded the previous forecasts.

Operating income

Increased 9.7 billion yen YoY*3, 2.0 billion yen compared toprevious forecast*2
 All segments exceeded the previous forecasts excluding the Information & Telecommunication
Systems, Electronic Systems & Equipment, and Construction Machinery.

Net other income(deductions)
Net income attributable to
Hitachi, Ltd. stockholders

Decreased 222.9 billion yen YoY, rose 12.5 billion yen
compared to previous forecast*2
 Decreased year over year because of lower net gain on securities.

Decreased 171.8 billion yen YoY*4, increased 25.3 billion yen
compared to previous forecast*2
 Decreased year over year because of lower net gain on securities.

Positive 30.0 billion yen, down 221.5 billion yen YoYFree cash flows

*1
*2
*3
*4

 Decline mainly reflected the absence of the impact of selling the HDD business sale in fiscal 2011 andthe acquisition of the U.K. company Horizon Nuclear Power Limited.

After adjustment for the effect of selling the HDD and small & medium-sized display businesses: decreased 21.8 billion yen
Previous forecast announced on February 4, 2013
After adjustment for the effect of selling the HDD and small & medium-sized display businesses: rose 45.2 billion yen
After adjustment for the effect of selling the HDD and small & medium-sized display businesses: rose 74.9 billion yen© Hitachi, Ltd. 2013. All rights reserved.

4

1-2. 2012 Mid-Term Management Plan Overview (1)Revenues

Operating income ratio

Net income attributable
to Hitachi, Ltd.
stockholders

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2012 Target*1

9,315.8 billion yen

9,665.8 billion yen

9,041.0 billion yen

10,000 billion yen

4.8%

4.3%

4.7%

Over 5%

Consistently
generate at least
200 billion yen

238.8 billion yen

347.1 billion yen

175.3 billion yen

D/E ratio*2

1.03 times

0.86 times

0.75 times(Manufacturing, services &others)(0.68 times)(0.56 times)(0.47 times)

Total Hitachi, Ltd.
stockholders’ equity ratio

15.7%

18.8%

21.2%

(Manufacturing, services &others)(17.0%)(20.5%)(23.2%)

86 yen/U.S. dollar
113 yen/euro

79 yen/U.S. dollar
109 yen/euro

83 yen/U.S. dollar
107 yen/euro

Exchange rate

0.8 times or below

20%

80 yen/U.S. dollar
110 yen/euro*1 As of June 9, 2011 (revised to reflect HDD business transfer), assumed exchange rate.
*2 Including non-controlling interests, and also including non-recourse borrowings of consolidated securitization entities.

© Hitachi, Ltd. 2013. All rights reserved.

51-3. 2012 Mid-Term Management Plan Overview (2)1. Promote Social Innovation Business• Focused investment on the Social Innovation Business(acquisitions of U.K. company Horizon Nuclear Power Limited, U.S. company BlueArc Corporation, etc.)• Promoted business structure reforms (sold HDD business, small and medium-sized display business, etc.)• Transformed the management system (Six groups structure)
2. Strengthen Management Base
• Improved the financial base (Total Hitachi, Ltd. stockholders’ equity ratio=21.2%, D/E ratio=0.75 times)• Maintained positive free cash flows (Fiscal 2010-2012 average of 287.5 billion yen/year)• Pushed ahead with Hitachi Smart Transformation Project for overhauling cost structures

3. Global Growth Strategies• Expanded and improved global business base (strengthened production and procurement functions, etc.)• Stepped up efforts to win large projects overseas (U.K. IEP*, mining machinery for Turkish gold mine, etc.)* IEP: Intercity Express Programme© Hitachi, Ltd. 2013. All rights reserved.

6

1-4. Hitachi Smart Transformation Project

Fiscal 2012

From fiscal 2013

Realized higher operating income even withlower revenues in line with business portfolio reforms

Reform business structure for generating higher profits
 Improved gross profit margin, SG&A expenses ratio

Promoted initiatives
Productioncosts Accelerated globalization of the total value chain from sales through design and manufacturing
 Reduced cost of procuring production facilities
 Improved design efficiency with modularization
 Centralized common manufacturing processes• Centralized circuit board assembly sites (from 28 to 5), etc.

DirectMaterials
costs Accelerated SCM cost reforms across businesses with the appointment ofChief Procurement Officers (CPOs)
 Strengthened platforms for accelerating local procurement(established Hitachi China Materials Technology Innovation Center in April 2013)
 Strengthened locally led design and quality assurance capabilities
 Expanded global centralized purchasing Expanded and increased corporate procurement sites (completed establishment of 25 overseas bases)

Indirectcosts Reduced indirect materials costs (unit cost and absolute amount)• Reduced logistic costs(centralized warehouses in Japan and overseas, standardized packaging materials, etc.)• Centralized common Group expense items (communications, travel expenses, consumables, etc.)
 Accelerated use of shared services globally (India, since October 2012)© Hitachi, Ltd. 2013. All rights reserved.

71-5. Consolidated Statements of Operations

Billions of yen
Year over year
Fiscal 2011

Fiscal 2012

After
adjustment*1

Previous
forecast
comparison*2

9,665.8

9,041.0(624.8)[94%](21.8)[100%]+141.0[102%]

Operating income

412.2

422.0

+9.7

+45.2

+2.0

Net other income (deductions)

145.4(77.4)(222.9)

(8.9)

+12.5

Income before taxes

557.7

344.5

(213.1)

+36.2

+14.5

Income taxes

144.9

106.8

(38.1)(34.0)+1.8

Net income

412.8

237.7

(175.0)

+70.3

+12.7

Net income attributable tononcontrolling interests

65.6

62.3

(3.2)

(4.6)

(12.6)Net income attributable to
Hitachi, Ltd. stockholders

347.1

175.3

(171.8)

+74.9

+25.3

Revenues*1 After adjustment for the effect of selling the HDD and small & medium-sized display businesses*2 Previous forecast announced on February 4, 2013

© Hitachi, Ltd. 2013. All rights reserved.

8

1-6. Major Factors for Change in Operating Income (Year over Year)

Operating income

Billions of yen

Lower sales prices:(110.0)

Impact of selling businesses*: (35.5)

412.2

One-off expenses infiscal 2012: (35.0)(+9.7)

Impact of cost increases
in large projects: (20.0)+45.2
Dissipating Impact ofThailand Floods, etc.:
+50.0

376.7

Cost reduction,
etc.: +180.2

Lower capacity
utilization: (40.0)

422.0

Effect of foreign exchange
movements: +20.0

Fiscal 2011

Fiscal 2012

Benefits of Hitachi Smart
Transformation Project:+75.0* The HDD and small & medium-sized display business© Hitachi, Ltd. 2013. All rights reserved.

9

1-7.

Major Factors for Change in Net Income
Attributable to Hitachi, Ltd. Stockholders

Operating income

Net income attributable to Hitachi, Ltd. stockholders

Losses on disposal of fixed assets,gain (loss) on securities, etc.: +8.1

Structural reform
expenses: (53.7)

Billions of yen

422.0
Effect of foreign exchange
movements: +8.4
[Others][Renesas Electronics Corporation]*(246.7)

Equity in net loss ofaffiliated companies: (40.4)

Income taxes: (106.8)

175.3

OperatingincomeNet income attributable to
Hitachi, Ltd. stockholders

Net income attributable tononcontrolling interests:(62.3)

Fiscal 2012
* Includes structural reform expenses© Hitachi, Ltd. 2013. All rights reserved.

10

1-8.

Major Factors for Change in Net Income
Attributable to Hitachi, Ltd. Stockholders (Year over Year)
Billions of yen

Net income attributable to
Hitachi, Ltd. Stockholders

Structural reform expenses ofRenesas Electronics Corporation: (26.1)

Impact of selling businesses*: (246.8)

347.1(171.8)

Improved equity in losses ofaffiliated companies: +1.3

Net income attributable tononcontrolling interests: +4.6
Decreasing ofincome taxes: +34.0[+74.9]

100.3

175.3

Losses on disposal of fixed assets,gain (loss) on securities, etc.: +15.9

Improved operating
income: +45.2

Fiscal 2011

Fiscal 2012

* The HDD and small & medium-sized display business© Hitachi, Ltd. 2013. All rights reserved.

111-9. Revenues by Market

Billions of yen
Year over year
Fiscal 2011

Ratio

Fiscal 2012

Ratio

After
adjustment*

Japan

5,534.457%

5,355.1

59%

97%

98%

Outside Japan

4,131.4

43%

3,685.9

41%

89%

102%

Asia

2,000.9

21%

1,711.1

19%

86%

101%

China

1,073.4

11%

816.3

9%

76%

97%

North America

869.0

9%

804.0

9%

93%

105%

Europe

761.1

8%

636.8

7%

84%

96%

Other Areas

500.2

5%

533.9

6%

107%

109%

9,665.8100%

9,041.0

100%

94%

100%

Total

Ratio of overseas revenues: 43% (40%)*  41%* After adjustment for the effect of selling the HDD and small & medium-sized display businesses© Hitachi, Ltd. 2013. All rights reserved.

12

1-10. Consolidated Balance Sheets

Billions of yen
As of March 31, 2012

As of March 31, 2013

Changefrom March 31, 2012

Total assets

9,418.5

9,809.2+390.7

Total liabilities

6,644.5

6,629.9(14.5)

2,396.4

2,370.0(26.3)

Total Hitachi, Ltd. stockholders' equity

1,771.7

2,082.5+310.7

Noncontrolling interests

1,002.2

1,096.7+94.5

Total Hitachi, Ltd.
stockholders' equity ratio

18.8%

21.2%

2.4 points improvement

0.86 times

0.75 times

0.11 points improvement

Interest-bearing debt

D/E ratio(Including noncontrolling interests)© Hitachi, Ltd. 2013. All rights reserved.

13

1-11. Consolidated Statements of Cash Flows

Billions of yen
As of March 31, 2012

As of March 31, 2013

Year over year

Cash flows from operating activities

447.1

583.5

+136.3

Cash flows from investing activities(195.5)(553.4)(357.8)

Free cash flows

251.5

30.0

(221.5)

Cash flows from financing activities(167.8)(180.4)(12.6)© Hitachi, Ltd. 2013. All rights reserved.

14

1-12.

Consolidated Financial Statements
by Manufacturing, Services & Others and Financial Services

 Consolidated Balance Sheets

Billions of yen
Manufacturing,Services & Others

Financial Services

Total*

Total assets

8,324.4

1,960.9

9,809.2

Total liabilities

5,414.7

1,680.2

6,629.9

1,368.8

1,224.9

2,370.0

1,932.3

161.1

2,082.5

Noncontrolling interests

977.3

119.6

1,096.7

Total Hitachi, Ltd. stockholders' equity ratio

23.2%

8.2%

21.2%

D/E ratio (Including noncontrolling interests)

0.47 times

4.36 times

0.75 times

Interest-bearing debt
Total Hitachi, Ltd. stockholders' equity

 Consolidated Statements of Cash Flows

Billions of yen
Manufacturing,Services & Others

Financial Services

Total*Cash flows from operating activities

503.4

105.2

583.5

Cash flows from investing activities(478.4)(63.0)(553.4)

25.0

42.1

30.0

(170.1)(44.4)(180.4)

Free cash flows
Cash flows from financing activities* Total figures exclude inter-segment transactions© Hitachi, Ltd. 2013. All rights reserved.

15

1-13. Consolidated Capital Expenditure, Depreciation and R&D Expenditure Consolidated Capital Expenditure (Completion basis, including Leasing Assets)

Billions of yen
Year over year

Fiscal 2011
Total*1

Fiscal 2012

After
adjustment*2

649.2

742.5

114%

122%

Manufacturing, Services & Others

405.4

406.1

100%

111%

Financial Services

256.2

345.0

135%

-

 Consolidated Depreciation (Including Leasing Assets)

Billions of yen
Year over year

Fiscal 2011
Total

Fiscal 2012

After
adjustment*2

360.3

300.6

83%

94%

Manufacturing, Services & Others

302.2

242.8

80%

93%

Financial Services

58.1

57.8

99%

-

 Consolidated R&D ExpenditureBillions of yen
Year over year
Fiscal 2011

Total

412.5

Fiscal 2012
341.3

After
adjustment*2

83%

98%

*1 Total Figures exclude inter-segment transactions*2 After adjustment for the effect of selling the HDD and small & medium-sized display businesses© Hitachi, Ltd. 2013. All rights reserved.

16

1-14. Revenues by Business Segment

Billions of yen
Year over year
Fiscal 2011

Information & Telecommunication Systems

Fiscal 2012

After
adjustment*1

Previous
forecast
comparison*2

1,764.2

1,786.5

101%

-

100%

832.4

904.6

109%

-

104%

Social Infrastructure & Industrial Systems

1,204.9

1,313.8

109%

-

104%

Electronic Systems & Equipment

1,101.7

1,014.3

92%

-

99%

798.7

756.0

95%

-

105%

1,437.1

1,336.4

93%

-

100%

Automotive Systems

811.5

806.8

99%

-

103%

Digital Media & Consumer Products

858.8

818.5

95%

-

101%

Financial Services

353.2

340.2

96%

-

106%

Others*3

1,719.7

1,111.0

65%

99%

100%

Eliminations & Corporate items(1,216.8)(1,147.5)

-

-

-

Total

9,665.8

9,041.0

94%

100%

102%

Power Systems

Construction Machinery
High Functional Materials & Components*1 After adjustment for the effect of selling the HDD and small & medium-sized display businesses*2 Previous forecast announced on February 4, 2013
*3 Effective on April 1, 2012, Hitachi discontinued the Components & Devices Segment. The businesses, which were previously included in the Components & Devices Segment, have been
included in the Others. Figures for each segment, including figures for the previous fiscal year, reflect the changed segmentation.

© Hitachi, Ltd. 2013. All rights reserved.

17

1-15. Operating Income (Loss) by Business Segment

Billions of yen
Year over year
Fiscal 2011

Fiscal 2012

After
adjustment*1

Previous
forecast
comparison*2

Information & Telecommunication Systems

101.7

104.6

+2.9

-

(10.3)

Power Systems(33.9)

29.9

+63.8

-

+3.9

Social Infrastructure & Industrial Systems

49.1

60.2

+11.0

-

+4.2

Electronic Systems & Equipment

49.9

29.3

(20.6)-(4.6)

Construction Machinery

63.1

54.6

(8.5)

-

(3.3)

High Functional Materials & Components

77.0

58.4

(18.5)-+5.4

Automotive Systems

37.0

35.4

(1.6)

-

+2.4

Digital Media & Consumer Products(10.9)

(5.3)

+5.5

-

+1.6

Financial Services

30.2

29.2

(0.9)

-

+1.2

Others*3

72.7

40.1

(32.5)+2.9+1.1

Eliminations & Corporate items(23.8)(14.7)

+9.1

-

+0.2

Total

412.2

422.0

+9.7

+45.2

+2.0

*1 After adjustment for the effect of selling the HDD and small & medium-sized display businesses*2 Previous forecast announced on February 4, 2013
*3 Effective on April 1, 2012, Hitachi discontinued the Components & Devices Segment. The businesses, which were previously included in the Components & Devices Segment, have been
included in the Others. Figures for each segment, including figures for the previous fiscal year, reflect the changed segmentation.

© Hitachi, Ltd. 2013. All rights reserved.

18

Outline of Consolidated Financial Results for Fiscal 2012
May 10, 2013

Contents
1. Outline of Consolidated Financial Resultsfor Fiscal 2012
2. Outlook for Fiscal 2013
3. Overview by Business Segment© Hitachi, Ltd. 2013. All rights reserved.

192-1. Outlook for Fiscal 2013 (1) Business Environment
The economy is forecasted to experience moderate growth during the latter half of fiscal 2013 dueJapanto growth in the U.S. and emerging markets, as well as improving economic sentiment in Japan due
to the benefits of various government measures aimed at ending the deflationary period.

The U.S. economy could see the pace of recovery accelerate during the second half of 2013, as aU.S.

result of quantitative easing and household debt adjustment, despite the downward pressure on theeconomy from automatic government spending cuts.

EuropeChina

Forecasting protracted economic slowdown due to ongoing government austerity programs,
although financial markets have rebounded due to the ECB’s debt crisis response.

Real GDP growth for the January to March 2013 quarter slowed, and the Chinese economy ismoving from investment to consumption-led. With many issues also in need of structural reform
such as excess production, economic growth is expected to slow.

Although growth slipped in 2012 due to the European crisis and slowing Chinese economy,

Emerging
Economies

emerging economies are expected to see a slight upturn in economic growth in 2013, driven byinternal demand in ASEAN countries.

© Hitachi, Ltd. 2013. All rights reserved.

20

2-2. Outlook for Fiscal 2013 (2) Main Initiatives for Fiscal 2013
1. Promote Social Innovation Business Focus investment on the Social Innovation Business Expand development of services businesses

2. Strengthen Management Base

 Accelerate promotion on the Hitachi Smart Transformation Projectfor reforming cost structures

3. Global Growth Strategies

 Expand overseas orders in strong businesses

 Fiscal 2013 Outlook: Projecting higher revenues and higher earnings[Projections for fiscal 2013 assume an exchange rate of 95 yen to the U.S.dollar and 120 yen to the euro.]
Fiscal 2012

Fiscal 2013 (Forecast)Billions of yen
Year over year

9,041.0

9,200.0+159.0[102%]

Operating income

422.0

500.0

+77.9

Net other income (deductions)(77.4)(75.0)+2.4

Income before income taxes

344.5

425.0

+80.5

Income taxes

106.8

120.0

+13.2

Net income

237.7

305.0

+67.3

Net income attributable tononcontrolling interests

62.3

95.0

+32.6

Net income attributable to
Hitachi, Ltd. stockholders

175.3

210.0

+34.7

Revenues© Hitachi, Ltd. 2013. All rights reserved.

21

2-3. Major Factors of Net Income Attributable to Hitachi, Ltd. Stockholders

Fiscal 2012

Fiscal 2013 (Forecast)Billions of yen

422.0

Billions of yen

500.0

Net other income(deductions)(77.4)Net otherincome (deductions)(75.0)

Income taxes(106.8)

Income taxes(120.0)175.3

Net income attributable tononcontrolling interests(95.0)Net income attributable tononcontrolling interests(62.3)

OperatingincomeNet income
attributable to
Hitachi, Ltd.
stockholders

210.0

OperatingincomeNet income
attributable to
Hitachi, Ltd.
stockholders© Hitachi, Ltd. 2013. All rights reserved.

22

2-4. Outlook for Fiscal 2013 Revenues by Business Segment

Billions of yen
Fiscal 2012
Information & Telecommunication Systems

Fiscal 2013 (Forecast)Year over year

1,786.5

1,820.0

102%

904.6

750.0

83%

Social Infrastructure & Industrial Systems

1,313.8

1,370.0

104%

Electronic Systems & Equipment

1,014.3

1,090.0

107%

756.0

800.0

106%

1,336.4

1,310.098%

Automotive Systems

806.8

820.0

102%

Digital Media & Consumer Products

818.5

820.0

100%

Financial Services

340.2

330.0

97%

Others1,111.0

1,150.0

104%

Eliminations & Corporate items(1,147.5)(1,060.0)

-

Total

9,041.0

9,200.0102%

Power Systems

Construction Machinery
High Functional Materials & Components© Hitachi, Ltd. 2013. All rights reserved.

23

2-5. Outlook for Fiscal 2013 Operating Income (Loss) by Business Segment

Billions of yen
Fiscal 2012

Fiscal 2013 (Forecast)Year over year

Information & Telecommunication Systems

104.6

120.0

+15.3

Power Systems

29.9

15.0

(14.9)

Social Infrastructure & Industrial Systems

60.2

66.0

+5.7

Electronic Systems & Equipment

29.3

47.0

+17.6

Construction Machinery

54.6

82.0

+27.3

High Functional Materials & Components

58.4

84.0

+25.5

Automotive Systems

35.4

41.0

+5.5

Digital Media & Consumer Products

(5.3)

0.0

+5.3

Financial Services

29.2

30.0

+0.7

Others

40.1

45.0

+4.8

Eliminations & Corporate items(14.7)(30.0)(15.2)

Total

422.0

500.0

+77.9

© Hitachi, Ltd. 2013. All rights reserved.

24Outline of Consolidated Financial Results for Fiscal 2012
May 10, 2013

Contents
1. Outline of Consolidated Financial Resultsfor Fiscal 2012
2. Outlook for Fiscal 2013
3. Overview by Business Segment© Hitachi, Ltd. 2013. All rights reserved.

25

3-1. Information & Telecommunication Systems

 Revenues
2,000

Billions of yen
1,786.5

1,820.0

1,600* Figures in brackets are year over year comparisons Fiscal 2012 Results• Revenues: 1,786.5 billion yen [101%]
Slightly higher revenues from steady sales in services in Japanand storage solutions and ATMs overseas, as well as theimpact of foreign currency exchange rate fluctuations, etc.

1,200
800

• Operating income: 104.6 billion yen [+2.9 billion yen]

400
0
Fiscal 2012

 Operating income

Fiscal 2013 (Forecast)Higher earnings despite cost increases in services and lower
telecommunication sales. This mainly reflected higher earnings
in storage solutions and ATMs overseas, as well as the impactof foreign currency exchange rate fluctuations, etc.

Billions of yen

 Fiscal 2013 Outlook

150
120.0
120

 Review of Operations• Revenues: 1,820.0 billion yen [102%]
Forecasting higher revenues based on strong sales in overseas
storage solutions and domestic services, as well as expanding
sales of new services and products.

104.6

90
60

• Operating income: 120.0 billion yen [+15.3billion yen]
Forecasting higher earnings based on higher revenues, andstrengthening project management in services.

30
0
Fiscal 2012

Fiscal 2013 (Forecast)© Hitachi, Ltd. 2013. All rights reserved.

26

3-2. Power Systems

 Revenues
1,000

Billions of yen
904.6
750.0

800

 Review of Operations* Figures in brackets are year over year comparisons Fiscal 2012 Results• Revenues: 904.6 billion yen [109%]
Revenues rose mainly due to taking-over of the transmission
and distribution systems business from Japan AE Power
Systems Corporation, and higher sales of thermal power
generation systems.

600
400
200

• Operating income: 29.9 billion yen [+63.8 billion yen]0
Fiscal 2012

Fiscal 2013 (Forecast) Operating income

Billions of yen

The segment saw a marked improvement in profitability andmoved back into the black, mainly due to the absence ofadditional expenses in overseas thermal power generation
systems recorded in fiscal 2011 and progress withcost-reduction measures.

 Fiscal 2013 Outlook

40• Revenues: 750.0 billion yen [83%]

29.9
30

20

15.0

Forecasting decrease in revenues, due to lower sales frompreventive maintenance services for nuclear power generation
systems in Japan, and the establishment of a joint venture inthermal power systems with Mitsubishi Heavy Industries, Ltd.
scheduled for January 2014.

10• Operating income: 15.0 billion yen [(14.9) billion yen]0
Fiscal 2012

Fiscal 2013 (Forecast)

Forecasting decrease in operating income, in line with the
projected decrease in revenues.

© Hitachi, Ltd. 2013. All rights reserved.

27

3-3. Social Infrastructure & Industrial Systems

 Revenues
1,500

Billions of yen
1,313.8

1,370.0

1,200 Review of Operations* Figures in brackets are year over year comparisons Fiscal 2012 Results• Revenues: 1,313.8 billion yen [109%]
Revenues increased due to strong growth in the elevator andescalator business in China, and higher sales of industrial-use
electrical equipment overseas.

900
600

• Operating income: 60.2 billion yen [+11.0 billion yen]

300

Operating income increased due to the higher revenues,
progress with cost-reduction measures, etc.

0
Fiscal 2012

Fiscal 2013 (Forecast) Operating income

Billions of yen

 Fiscal 2013 Outlook

75

66.0
60.2

60

• Revenues: 1,370.0 billion yen [104%]
Forecasting higher revenues on higher sales of industrial
equipment overseas and increased orders in the elevator andescalator business in China and other Asian markets.

45
30• Operating income: 66.0 billion yen [+5.7 billion yen]
Forecasting higher operating income on the higher revenues
and progress with cost-reduction measures.

15
0
Fiscal 2012

Fiscal 2013 (Forecast)© Hitachi, Ltd. 2013. All rights reserved.

28

3-4. Electronic Systems & Equipment

 Revenues

Billions of yen

1,200
1,014.3

1,090.0

1,000 Review of Operations* Figures in brackets are year over year comparisons Fiscal 2012 Results• Revenues: 1,014.3 billion yen [92%]
Revenues declined mainly due to lower sales of mobile phones
in the trading division and medical analysis systems at Hitachi
High-Technologies Corporation, etc.

800
600
400

• Operating income: 29.3 billion yen [(20.6) billion yen]200
0
Fiscal 2012

Fiscal 2013 (Forecast) Operating income
50

Billions of yen
47.0

 Fiscal 2013 Outlook• Revenues: 1,090.0 billion yen [107%]

40
30

Operating income declined due to the lower revenues, as well
as lower earnings at Hitachi Medical Corporation on account oflosses stemming from business plan revisions.

Forecasting higher revenues on projected strong sales at
Hitachi High-Technologies Corporation, centered on industrial
materials and semiconductor manufacturing equipment.

29.3

20

• Operating income: 47.0 billion yen [+17.6 billion yen]
Forecasting higher operating income on the projected higher
revenues.

100
Fiscal 2012

Fiscal 2013 (Forecast)© Hitachi, Ltd. 2013. All rights reserved.

29

3-5. Construction Machinery Revenues

Billions of yen

1,000
800

756.0

800.0

 Review of Operations* Figures in brackets are year over year comparisons Fiscal 2012 Results• Revenues: 756.0 billion yen [95%]
Revenues declined due to lower demand for hydraulicexcavators in China, and decreased sales of mining machinery
in Asia.

600
400• Operating income: 54.6 billion yen [(8.5) billion yen]

200

Operating income declined due to lower revenues.

0
Fiscal 2012

Fiscal 2013 (Forecast) Operating income

Billions of yen

 Fiscal 2013 Outlook

100
82.0
80
60

• Revenues: 800.0 billion yen [106%]
Forecasting higher revenues on a projected increase in housing
starts and reconstruction-related work in Japan, as well as arecovery in demand for hydraulic excavators in China.

54.6

40

• Operating income: 82.0 billion yen [+27.3 billion yen]
Forecasting higher earnings due to the benefits of the yen’s
depreciation, in addition to sales price revisions andcost-reduction measures, etc.

20
0Fiscal 2012

Fiscal 2013 (Forecast)© Hitachi, Ltd. 2013. All rights reserved.

30

3-6. High Functional Materials & Components

 Revenues
1,500

Billions of yen
1,336.4

1,310.0

1,200* Figures in brackets are year over year comparisons Fiscal 2012 Results• Revenues: 1,336.4 billion yen [93%]
Revenues declined due mainly to the withdrawal from
unprofitable businesses at Hitachi Cable, Ltd. and lower
demand for electronics-related products.

900
600

• Operating income: 58.4 billion yen [(18.5) billion yen]

300
0
Fiscal 2012

Fiscal 2013 (Forecast) Operating income

Operating income declined due to lower sales and write-offs
associated with a decrease in raw material prices at Hitachi
Metals, Ltd.

Billions of yen

 Fiscal 2013 Outlook

100
84.0
80
60

 Review of Operations• Revenues: 1,310.0 billion yen [98%]Forecasting lower revenues because of lower sales at Hitachi
Cable, although Hitachi Chemical Co., Ltd. is expected to see
strong sales, centered on materials for tablet PCs andsmartphones.

58.4

40

• Operating income: 84.0 billion yen [+25.5 billion yen]

20
0
Fiscal 2012

Fiscal 2013 (Forecast)

Forecasting higher earnings due to the absence of losses
stemming from falling raw materials prices in fiscal 2012,business structure reforms at Hitachi Cable and the projected
higher revenues at Hitachi Chemical.
© Hitachi, Ltd. 2013. All rights reserved.

31

3-7. Automotive Systems

 Revenues

Billions of yen

1,000
806.8

820.0

800

 Review of Operations* Figures in brackets are year over year comparisons Fiscal 2012 Results• Revenues: 806.8 billion yen [99%]Revenues fell slightly reflecting mainly the impact of lower
production by Japanese carmakers in China.

600
400

• Operating income: 35.4 billion yen [(1.6) billion yen]
Operating income declined due to lower revenues.

200
0
Fiscal 2012

Fiscal 2013 (Forecast) Operating income

Billions of yen

 Fiscal 2013 Outlook

50
41.0
40

35.4

• Revenues: 820.0 billion yen [102%]
Forecasting higher revenues mainly because of a projected
recovery in emerging markets and the U.S. market, and theimpact of the yen’s depreciation, although there are concerns
about the impact of lower production by Japanese carmakers in
China, and the end of the subsidy scheme for eco-friendly carsin Japan.

30
20
10

• Operating income: 41.0 billion yen [+5.5 billion yen]0
Fiscal 2012

Fiscal 2013 (Forecast)

Forecasting higher operating income on the higher revenues,
as well as higher capacity utilization and impact of the yen‘sdepreciation.
© Hitachi, Ltd. 2013. All rights reserved.

32

3-8. Digital Media & Consumer Products

 Revenues

Billions of yen

1,000
820.0

818.5
800

 Review of Operations* Figures in brackets are year over year comparisons Fiscal 2012 Results• Revenues: 818.5 billion yen [95%]
Revenues declined due to business strategy changes inflat-panel TVs, as well as the impact of falling prices for
optical disk drive products.

600
400

• Operating income (loss):(5.3) billion yen [+5.5 billion yen]200
0
Fiscal 2012

Fiscal 2013 (Forecast) Operating income (loss)

A narrower operating loss was posted due to the benefits ofbusiness structure reforms in the flat-panel TV business andthe absence of the impact of flooding in Thailand in fiscal 2011

Billions of yen

 Fiscal 2013 Outlook

2• Revenues: 820.0 billion yen [100%]
0.0
0Fiscal 2012
(2)

(4)

(6)

Fiscal 2013 (Forecast)

Forecasting revenues on a par with fiscal 2012 due to growth in
air-conditioning equipment and certain other product lines
stemming from efforts to develop business in emerging
markets, despite the impact of the LCD projector business
transfer.

• Operating income (loss):
0 billion yen [+5.3 billion yen]
(5.3)

Forecasting recovered operating income due to improved
profitability in overseas air-conditioning equipment and home
appliances, despite structural reform expenses for the digital
media business.
© Hitachi, Ltd. 2013. All rights reserved.
33

3-9. Financial Services / Others

OthersFinancial Services
 Revenues

Billions of yen

400 Revenues
1,200

340.2

Billions of yen
1,111.0

1,150.0

Fiscal 2012

Fiscal 2013 (Forecast)

330.0

300
800
200
400
100

0

0
Fiscal 2012

Fiscal 2013 (Forecast) Operating income

Billions of yen

4030 Operating income
50

29.2

30.0

Billions of yen
45.0

40.1
40
30

20
20
10

10
0

0
Fiscal 2012

Fiscal 2013 (Forecast)Fiscal 2012

Fiscal 2013 (Forecast)© Hitachi, Ltd. 2013. All rights reserved.

34

Cautionary Statement

Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking
statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or
current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify“forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ
materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future
events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.
Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:• economic conditions, including consumer spending and plant and equipment investment in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as
levels of demand in the major industrial sectors Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors;• exchange rate fluctuations of the yen against other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated, particularly against the
U.S. dollar and the euro;• uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing;• uncertainty as to general market price levels for equity securities, declines in which may require Hitachi to write down equity securities that it holds;• the potential for significant losses on Hitachi’s investments in equity method affiliates;• increased commoditization of information technology products and digital media-related products and intensifying price competition for such products, particularly in the Digital Media &Consumer Products segments;• uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technologies on a timely and cost-effective basis and to achieve market acceptance forsuch products;• rapid technological innovation;• the possibility of cost fluctuations during the lifetime of, or cancellation of, long-term contracts for which Hitachi uses the percentage-of-completion method to recognize revenue fromsales;• fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum, synthetic resins, rare metals and rare-earth
minerals, or shortages of materials, parts and components;• fluctuations in product demand and industry capacity;• uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in product demand, exchange rates and/or price of raw materials or
shortages of materials, parts and components;• uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business;• uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness;• uncertainty as to the success of cost reduction measures;• general socioeconomic and political conditions and the regulatory and trade environment of countries where Hitachi conducts business, particularly Japan, Asia, the United States andEurope, including, without limitation, direct or indirect restrictions by other nations on imports and differences in commercial and business customs including, without limitation, contract
terms and conditions and labor relations;• uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and development of certain key
products;• uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly those related to electronics and data processing technologies;• uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity method affiliates have become or
may become parties;• the possibility of incurring expenses resulting from any defects in products or services of Hitachi;• the possibility of disruption of Hitachi’s operations by earthquakes, tsunamis or other natural disasters;• uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information or that of its customers;• uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its significant employee benefit-related costs; and• uncertainty as to Hitachi’s ability to attract and retain skilled personnel.
The factors listed above are not all-inclusive and are in addition to other factors contained in other materials published by Hitachi.

© Hitachi, Ltd. 2013. All rights reserved.

35

© Hitachi, Ltd. 2013. All rights reserved.