FOR IMMEDIATE RELEASE

Hitachi Announces Consolidated Financial Results for Fiscal 2009
Tokyo, May 11, 2010 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced its
consolidated financial results for fiscal 2009, ended March 31, 2010.
Note: All figures, except for the outlook for fiscal 2010, were converted at the rate of 93 yen to the U.S. dollar,
the approximate exchange rate on the Tokyo Foreign Exchange Market as of March 31, 2010.

- more --2-Summary
In millions of yen and U.S. dollars, except Net income (loss) attributable to Hitachi, Ltd. stockholders per share (6) and
Net income (loss) attributable to Hitachi, Ltd. stockholders per American Depositary Share (7).
The years ended March 31
Yen(B)/(A)
X100(millions)(%)
2010 (B)2009 (A)
1. Revenues

U.S. Dollars(millions)2010

10,000,369

8,968,546

90

96,436

2. Operating income

127,146

202,159

159

2,174

3. Income (loss) before income taxes(289,871)

63,580-684

4. Net income (loss)(795,120)(84,391)-(907)

5. Net income (loss) attributable to
Hitachi, Ltd.

(787,337)(106,961)-(1,150)(236.86)(236.87)(29.20)(29.20)-(0.31)(0.31)(2,369)(2,369)

(292)
(292)

-

(3.14)(3.14)

6. Net income (loss) attributable to
Hitachi, Ltd. stockholders per share
Basic
Diluted7. Net income (loss) attributable to
Hitachi, Ltd. stockholders per ADS(representing 10 shares)
Basic
DilutedNotes: 1. The Company's consolidated financial statements are prepared based on U.S.GAAPs.
Notes: 2. Operating income is presented in accordance with financial reporting principles and practices generally accepted in Japan.
Notes: 3. Segment Information are prepared based on U.S.GAAPs starting from Fiscal 2009.
The Company has changed the business segment classification starting from Fiscal 2009.
Figures for Fiscal 2008 have been restated to reflect the reclassification.
Notes: 4. Upon the adoption of Accounting Standards Codification 810, "Income before income taxes and minority interests","Income before minority interests" and "Net income" are changed to "Income before income taxes", "Net income" and "Net income attributable
to Hitachi, Ltd.", respectively, from Fiscal 2009.
Notes: 5. The figures are for 900 consolidated subsidiaries, including Variable Interest Entities, and 157 equity-method affiliates.

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1. Qualitative Information Concerning Consolidated Business Results
1-1. Summary of Fiscal 2009 Consolidated Business Results(1) Business Results
Year ended March 31, 2010
Billions ofyen

Year-over-year% change

Millions of
U.S. dollars

8,968.5(10%)

96,436

Operating income

202.1

59%

2,174

Income before income taxes

63.5

-

684

Net loss(84.3)-(907)

Net loss attributable to Hitachi, Ltd.

(106.9)-(1,150)

Revenues

The global economy in fiscal 2009, the fiscal year ended March 31, 2010, experienced an
economic recovery during the second half of the fiscal year following the worst period of
the economic recession in the first half. In particular, the Chinese economy achieved a highrate of economic growth, as highlighted by 8.7% year-over-year GDP growth in the 2009
calendar year, largely in part due to significant governmental economic counter measuresand other contributing factors. The other Asian economies also experienced modest
recovery due to exports to China and government economic stimulus measures.
The U.S. and European economies, although struggling to put the first half of the fiscal year
behind them, were improved by bold quantitative easing and government spending
programs, enabling them to also see a moderate recovery in the latter half of 2009.
Additionally, rebounding exports to emerging nations also aided in this recovery. However,with the continued fragile state of the financial environment, new problems have surfaced
such as risks surrounding public finances in some southern European countries.
In Japan, the economy began to experience a gentle recovery during the latter half of 2009
on the back of exports to China and other emerging nations, progress with inventory
adjustments of electronic components and devices and semiconductor- andautomotive-related products, and the benefits of government programs such as the
eco-points program and tax breaks on eco-friendly cars. Still, Japan has yet to achieve aself-sustaining recovery, with capital investment slow to pick up and employment andpersonal income conditions remaining difficult.
Hitachi’s consolidated revenues for fiscal 2009 declined 10% year over year, to 8,968.5
billion yen, despite strong growth from the Power Systems segment. The decline inrevenues were led by the Information & Telecommunication Systems, High Functional
Materials & Components, and Components and Devices segments, all due to the economic
recession.
Overseas revenues decreased 12% year over year, to 3,654.7 billion yen due to a worldwide
downturn in demand.
Hitachi posted consolidated operating income of 202.1 billion yen, up 59% year over year.
Although earnings were lower in the Information & Telecommunication Systems andConstruction Machinery segments, largely due to constraints on capital expenditures,- more --4-

earnings were significantly improved in the Automotive Systems and Digital Media &Consumer Products segments, reflecting the benefits of business structure reforms and otherfactors. The better operating income result also reflected cuts to fixed costs andprocurement costs.
Net other deductions were 138.5 billion yen, an improvement of 278.4 billion yen from theprevious fiscal year. This reflects improved net equity in losses due to better performancesby semiconductor-related affiliates and other entities, improved exchange gains due to theweaker yen, and decreased expenses related to the completion of business restructuring
compared with the previous fiscal year, including impairment losses on fixed assets.
As a result, Hitachi recorded income before income taxes of 63.5 billion yen, 353.4 billion
yen better year over year.
Income taxes decreased 357.2 billion yen year over year to 147.9 billion yen due to a
decline in write-off of deferred tax assets subject to consolidated taxation.
Consequently, Hitachi posted a net loss of 84.3 billion yen, a year-over-year improvementof 710.7 billion yen. Net loss attributable to noncontrolling interests was 22.5 billion yen
and net loss attributable to Hitachi, Ltd. was 106.9 billion yen, representing a 680.3 billion
yen improvement over fiscal 2008.
Hitachi resumed posting quarterly net income attributable to Hitachi, Ltd. from the third
quarter (October-December 2009) of fiscal 2009.

- more --5-(2) Revenues and Operating Income (Loss) by Business Segment
Effective from fiscal 2009, Hitachi has adopted FASB Accounting Standards Codification(ASC) 280, “Segment Reporting,” and therefore changed its business segmentation. In
accordance with this, Hitachi has shown figures for the previous fiscal year under the new
segment classifications. Previously, Hitachi prepared segment information based onJapanese accounting standards.
Results by business segment were as follows.
[Information & Telecommunication Systems]
Year ended March 31, 2010
Billions of yen
Revenues
Operating income

Year-over-year% change

Millions of
U.S. dollars

1,705.5(12%)

18,340

94.5

(32%)

1,017

The segment recorded revenues of 1,705.5 billion yen, a decrease of 12% year over year.
Software and services posted lower revenues year over year due to the impact ofconstrained IT investment, which was a byproduct of the sluggish Japanese economy.
Hardware revenues also fell year over year, reflecting a decline in storage revenues due tothe impact of foreign currency exchange rate fluctuations and lackluster demand.
Furthermore, unit shipments of ATMs fell in Japan.
Segment operating income dropped 43.8 billion yen, to 94.5 billion yen. Software andservices overall recorded lower operating income, reflecting lower services earnings due todecreased revenues, although software earnings were steady. Hardware also posted lower
operating income in line with lower revenues.
[Power Systems]
Year ended March 31, 2010
Billions of yen

Year-over-year% change

Millions of
U.S. dollars

Revenues

882.1

2%

9,485

Operating income

22.0

533%

237

Segment revenues were 882.1billion yen, up 2% year over year. One reason was strong
sales of coal-fired thermal power generation systems overseas, notably in Europe and South
Africa. In addition, sales of nuclear power generation systems were robust due to theconstruction of new plants and preventative maintenance in Japan. Moreover, higher salesof renewable energy-related systems, such as wind power generation systems, also
contributed to the segment revenue growth.
Segment operating income improved 18.5 billion yen to 22.0 billion yen, the result ofhigher revenues, and better project management.

- more --6-[Social Infrastructure & Industrial Systems]
Year ended March 31, 2010
Billions of yen
Revenues
Operating income

Year-over-year% change

Millions of
U.S. dollars

1,250.2(6%)

13,443

42.0

22%

453

The segment recorded revenues of 1,250.2 billion yen, down 6% year over year, reflecting
lower sales of elevators and escalators, and industrial equipment for the manufacturingindustry, as a consequence of the economic recession.
Segment operating income was 42.0 billion yen, an improvement of 7.6 billion yen year
over year. Although earnings were impacted by lower revenues, the segment had fewer
unprofitable projects due to better project management and also steps were taken to reduce
costs.
[Electronic Systems & Equipment]
Year ended March 31, 2010
Billions of yen
Revenues

Year-over-year% change

998.6

2%

(5.2)

-

Operating loss

Millions of
U.S. dollars
10,738(56)

Segment revenues were 998.6 billion yen, up 2% year over year, despite a sharp drop insales of semiconductor- and LCD-related manufacturing equipment due to constrained
capital expenditures in the electronics field. The increase related mainly to the consolidationof Hitachi Kokusai Electric Inc. and Hitachi Koki Co., Ltd. in March 2009.
The segment reported an operating loss of 5.2 billion yen, which was 30.9 billion yen morethan in fiscal 2008, as it fell into the red in the first half of fiscal 2009 due to much lower
revenues. However, the segment returned to profitability from the third quarter(October-December 2009) due to reductions to fixed costs and materials procurement costs,
as well as a partial recovery in capital investment, centered on semiconductors.

- more --7-[Construction Machinery]
Year ended March 31, 2010
Billions of yen

Year-over-year% change

Millions of
U.S. dollars

Revenues

583.6

(19%)

6,276

Operating income

17.6

(66%)

190

The segment reported a 19% decline in revenues year over year, to 583.6 billion yen due tosoft global demand for construction equipment. However, a right spot was sharply higher
sales of hydraulic excavators due to infrastructure building in China, which was part of thegovernment’s stimulus package.
Segment operating income fell 33.6 billion yen year over year, to 17.6 billion yen due to theimpact of lower revenues, despite the segment implementing cost-reduction measures.
[High Functional Materials & Components]
Year ended March 31, 2010
Billions of yen
Revenues
Operating income

Year-over-year% change

Millions of
U.S. dollars

1,249.3(20%)

13,434

44.4

76%

478

Segment revenues declined 20% year over year, to 1,249.3 billion yen. Although there weresigns of a recovery from the latter half of fiscal 2009 in automotive components and LCDand semiconductor-related products, revenues declined due to lower sales at Hitachi Metals,Ltd., Hitachi Chemical Co., Ltd. and Hitachi Cable, Ltd. attributable to declining global
demand.
Operating income improved 19.1 billion yen, to 44.4 billion yen, even though revenues
declined. This improved performance reflected reductions in fixed costs and materials
procurement expenses and improved earnings from products for LCD- andsemiconductor-related applications.
[Automotive Systems]
Year ended March 31, 2010
Billions of yen
Revenues

Year-over-year% change

Millions of
U.S. dollars

638.8

(6%)

6,869

(5.4)

-

(59)

Operating loss

Segment revenues decreased 6% year over year, to 638.8 billion yen, reflecting the negative
impact of sluggish demand worldwide through the first half of fiscal 2009. However, thesecond half of fiscal 2009 saw an improvement in revenues due to recovering demand in
North America and market expansion in China. Economic stimulus programs bygovernments around the world also drove the rebound.
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The segment recorded an operating loss of 5.4 billion yen, but this was a 55.0 billion yen
improvement year over year. Although revenues declined, the segment realigned andintegrated bases, adjusted its workforce and made progress with other business structurereforms as part of product portfolio realignment, helping the segment to become profitablefrom the third quarter (October-December 2009) of fiscal 2009.
[Components & Devices]Year ended March 31, 2010
Billions of yen
Revenues

Year-over-year% change

Millions of
U.S. dollars

754.8

(23%)

8,117

1.1

(80%)

12

Operating income

Segment revenues declined 23% year over year, to 754.8 billion yen, the result of lower
sales of HDDs due to sluggish demand caused by constrained IT investment, and lower
sales of displays for mobile phones and game consoles.
Operating income declined 4.6 billion yen, to 1.1 billion yen due to lower earnings in HDDs
in line with decreased sales, despite the segment cost reduction measures within the segment.
Note: The HDD operations are conducted by Hitachi Global Storage Technologies (Hitachi GST), which has a
December 31 fiscal year-end, different from Hitachi’s March 31 year-end. Hitachi’s results for the year ended
March 31, 2010 include the operating results of Hitachi GST for the period from January through December
2009.

[Digital Media & Consumer Products]
Year ended March 31, 2010
Billions of yen
Revenues

Year-over-year% change

Millions of
U.S. dollars

929.2

(16%)

9,992

(7.2)

-

(77)

Operating loss

The segment recorded a 16% decrease in revenues, to 929.2 billion yen. In addition to lower
sales of flat-panel TVs due to a large reduction of overseas sales channels, the decline wasattributable to lower sales of air conditioners due to constrained capital investment and acool summer in 2009 in Japan.
The segment reported an operating loss of 7.2 billion yen, but this was a 103.3 billion yen
improvement year over year. The segment was profitable as a whole from the second
quarter (July-September 2009) due to higher earnings from optical disc drives, in addition to
improvement resulting from business structure reforms in flat-panel TVs. The latterincluded switching to procuring panels from outside the Hitachi Group, reducing overseas
sales channels and adjustments to the workforce.
Note: The Optical disk drive operations are conducted by Hitachi-LG Data Storage, Inc (HLDS), which has a
December 31 fiscal year-end, different from Hitachi’s March 31 year-end. Hitachi’s results for the year
ended March 31, 2010 include the operating results of HLDS for the period from January through December
2009.

- more --9-[Financial Services]Year ended March 31, 2010
Billions of yen
Revenues

Year-over-year% change

Millions of
U.S. dollars

419.6

5%

4,512

8.5

28%

92

Operating income

The segment reported a 5% year-over-year increase in revenues, to 419.6 billion yen,largely due to recording large cancellation penalty payment receipts, in addition to strong
revenues from agricultural equipment leases and housing loans for consumers at Hitachi
Capital Corporation.
Operating income improved 1.8 billion yen year over year, to 8.5 billion yen, as operating
costs and financing costs declined and the segment implemented other cost-reduction
measures.
[Others]
Year ended March 31, 2010
Billions of yen

Year-over-year% change

Millions of
U.S. dollars

Revenues

763.6

(8%)

8,211

Operating income

19.4

(21%)

209

The segment recorded a 8% fall in revenues year over year, to 763.6 billion yen due tolower revenues at Hitachi Transport System, Ltd. due to soft demand, as well as lower
revenues in other services businesses.
Segment operating income dropped 5.0 billion yen year over year, to 19.4 billion yen, due
to the lower revenues and other factors.

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(3) Revenues by Market
Year ended March 31, 2010
Billions of yen

Year-over-year% change

Millions of
U.S. dollars

Japan

5,313.7(9%)

57,138Outside Japan

3,654.7(12%)

39,298Asia

1,699.0(11%)

18,270

North America

729.6

(19%)

7,846

Europe

824.6

(9%)

8,868

Other Areas

401.2

(5%)

4,315

Revenues in Japan were 5,313.7 billion yen, down 9% year over year.
Outside Japan revenues declined 12%, to 3,654.7 billion yen due to falling global demandand other factors. As a result, the ratio of overseas revenues to consolidated revenues was
41%, the same as fiscal 2008.
(4) Capital Investment, Depreciation and R&D Expenditures
Capital investment on a completion basis, excluding leasing assets, decreased 42% year
over year, to 247.4 billion yen. Hitachi continued to strictly select investments as a whole,but did increase investments in the Power Systems segment.
Depreciation, excluding leasing assets, decreased 9%, to 356.4 billion yen, mainly due tothe strict selection of capital investments and realignment and integration of manufacturingbases.
R&D expenditures declined 11%, to 372.4 billion yen, which corresponded to 4.2% ofconsolidated revenues. This decline was the result of moving forward with businessstructure reforms, although Hitachi did increase development focused on the Power Systems
segment.

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(5) Outlook for Fiscal 2010
Year ending March 31, 2011
Billions ofyen
Revenues

Year-over-year% change

Millions of
U.S. dollars

9,200.03%

108,235

Operating income

340.0

68%

4,000

Income before income taxes

315.0

395%

3,706

Net income

205.0

-

2,412

Net income attributable to Hitachi, Ltd.

130.0

-

1,529

In terms of the overall business environment going forward, the Chinese economy isexpected to maintain a high growth rate due to robust internal demand and the beneficial
effects of government policy, although it faces such problems as dealing with rising realestate and other prices, and revaluation of the yuan. Southeast Asian countries, India, Brazil
and certain other nations are also expected to maintain a steady recovery path in general.
Emerging economies will thus more clearly become the key drivers of the world economy.
Industrialized nations should also see their moderate recoveries continue, with growth rates
of approximately 2% to 3% compared with the previous year. However, there are concernsthat the pace of economic recovery will slow as the effects of economic stimulus measures
wear off and monetary policy is normalized. There are also other causes of instability,
including the possibility that sovereign debt problems will spread in southern Europe andthe yen’s appreciation.
The Japanese economy is expected to continue recovering, too. However, the ability of theeconomy to sustain a recovery under its own steam will be called into question even more
as economic counter measures run their course.
Due to these economic conditions, at present Hitachi is forecasting the results shown above
for fiscal 2010, the year ending March 31, 2011.
Making full use of the business base the Hitachi Group has built over the years, Hitachi willconcentrate even more on the Social Innovation Businesses from three perspectives tocreate a more stable profit base: transforming into a truly global company, fusing
information and telecommunication systems and power and industrial systems, andexpanding environmental businesses.
Projections for fiscal 2010 assume an exchange rate of 85 yen to the U.S. dollar and 120
yen to the euro.

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1-2. Financial Position(1) Financial Position
As of March 31, 2010
Billions ofyen

Change fromMarch 31, 2009

Millions of
U.S. dollars

Total assets

8,951.7(451.9)96,256

Total liabilities

6,683.9(540.4)71,870Interest-bearing liabilities

2,367.1(452.9)25,453

Total Hitachi, Ltd. stockholders’ equity

1,284.6

234.7

13,814

Noncontrolling interests

983.1(146.2)

10,572

Total Hitachi, Ltd. stockholders’ equity ratio

14.4%

3.2 point improvement-

D/E ratio (including noncontrolling interests)

1.04times

0.25 point improvement-

Total assets as of March 31, 2010 decreased 451.9 billion yen from March 31, 2009, to
8,951.7 billion yen. This was the result of reducing operating assets, centered mainly on
inventories, and implementing business structure reforms to improve cash flows.
Interest-bearing liabilities declined 452.9 billion yen, to 2,367.1 billion yen, as Hitachi
returned working capital to normal operating levels. Stockholders’ equity increased 234.7
billion yen, to 1,284.6 billion yen, due to capital raising and an improvement in pension
liability adjustments. As a result, the total Hitachi, Ltd. stockholders’ equity ratio improved
3.2 points from March 31, 2009, to 14.4%. The debt-to-equity ratio, including noncontrollinginterests, improved 0.25 points, to 1.04.
(2) Cash Flows
Year ended March 31, 2010
Billions ofyen

Year-over-yearchangeMillions of
U.S. dollars

Cash flows from operating activities

798.2

239.3

8,584

Cash flows from investing activities(530.5)19.4(5,705)

Free cash flows

267.7

258.7

2,879

Cash flows from financing activities(502.3)(786.7)(5,402)

Operating activities provided net cash of 798.2 billion yen, a 239.3 billion yen increase
from the previous fiscal year. In addition to a major improvement in net loss, this was due tothe reduction of inventories and other factors.
Investing activities used net cash of 530.5 billion yen, 19.4 billion yen less year over year.
The decrease was mainly due to the stricter selection of investments in property, plant andequipment.
Free cash flows, the sum of cash flows from operating and investing activities, was 267.7
billion yen.

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Financing activities used net cash of 502.3 billion yen, a 786.7 billion yen change from thenet cash provided in fiscal 2008. Although Hitachi procured funds through a capital raising,
this decrease reflected tender offers for five publicly listed companies and the repayment ofshort-term debt due to the normalization of working capital.
The net result of the above items was a decrease of 230.3 billion yen in cash and cash
equivalents, to 577.5 billion yen.
(3) Trends in Cash Flow IndexesYear ended
March 31, 2008

Year ended
March 31, 2009

Year ended
March 31, 2010

Hitachi, Ltd. stockholders’ equity ratio (%)

20.6

11.2

14.4

Equity ratio based on market value (%)

18.7

9.4

17.4

Cash flow to interest-bearing debt ratio

3.2

5.0

3.0

Interest coverage ratio (times)

18.7

16.5

30.4

(a) Hitachi, Ltd. stockholder’s equity ratio: Total Hitachi, Ltd. shareholders’ equity / Total assets(b) Equity ratio based on market value: Market capitalization / Total assets(c) Cash flow to interest-bearing debt ratio: Interest-bearing debt / Cash flows from operating activities(d) Interest coverage ratio: Cash flows from operating activities / Interest charges
Note: Market capitalization is computed based on the number of issued shares, excluding treasury stock.

1-3. Basic Policy on the Distribution of Earnings and Fiscal 2009 and 2010 Dividends
Hitachi views enhancement of the long-term and overall interests of shareholders as an importantmanagement objective. The industrial sector encompassing energy, information systems, social
infrastructure and other primary businesses of Hitachi is undergoing rapid technologicalinnovation and changes in market structure. This makes vigorous upfront investment in R&D andplant and equipment essential for securing and maintaining market competitiveness andimproving profitability. Dividends are therefore decided based on medium-to-long term businessplans with an eye on ensuring the availability of internal funds for reinvestment and the stable
growth of dividends, with appropriate consideration of a range of factors, including Hitachi’sfinancial condition, results of operations and dividend payout ratio.
Hitachi believes that the repurchase of its shares should be undertaken, when necessary, as
part of its policy on distribution to shareholders to complement the dividend payout. In
addition, Hitachi will repurchase its own shares on an ongoing basis in order to implement a
flexible capital strategy, including business restructuring, to maximize shareholder value so
far as consistent with the dividend policy. Such action will be taken by Hitachi after
considering its future capital requirement under its business plans, market conditions andother relevant factors.
Based on the above policies, regrettably, Hitachi determined to forgo the payment of the dividend
for fiscal 2009. For fiscal 2010, Hitachi plans to pay the interim dividend of 5 yen per share,
which consists of ordinary dividend of 3 yen per share and commemorative dividend of 2 yen per
share for Hitachi's centennial anniversary. Year-end dividend has not been determined.

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1-4. Business Risk and Other Risks
The Hitachi Group is engaged in a broad range of business activities on a global scale.
Furthermore, the group utilizes highly sophisticated and specialized technologies and information
to conduct these businesses. As a result, business activities are vulnerable to a diverse array of risk
factors.
Major risk factors include, but are not limited to, economic trends in major markets; changes inforeign exchange rates; the fundraising environment; falls in prices of shareholdings; losses
related to investments in affiliated companies; intensifying competition; rapid technologicalinnovations; changes in estimates and costs related to long-term contracts, the procurement of raw
materials and components; supply and demand balance; the ability to develop an effective strategy
for strengthening the Social Innovation Business; progress in business restructuring; overseas
business activities; the ability to implement mergers and acquisitions and to form strategic
alliances; protection, maintenance and acquisition of intellectual property; litigation and otherlegal proceedings; product and service quality and liability; natural disasters and similar events;
reliance on information systems; the management of confidential information; retirement benefit
liabilities; and recruiting activities.

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 whichindicate future events and trends may identify “forward-looking statements.” Such statements are based
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 investments in Hitachi’smajor markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in
the major industrial sectors which Hitachi serves, including, without limitation, the information,
electronics, automotive, construction and financial sectors;•

exchange rate fluctuations for the yen and other currencies in which Hitachi makes significant sales orin 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 in Japan, 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 andintensifying price competition for such products, particularly in the Components & Devices and theDigital Media & Consumer Products segments;•

uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new- more -- 15 -

technology on a timely and cost-effective basis and to achieve market acceptance for such products;•

rapid technological innovation;•

the possibility of cost fluctuations during the lifetime of or cancellation of long-term contracts, forwhich Hitachi uses the percentage-of-completion method to recognize revenue from sales;•

fluctuations in the price of raw materials including, without limitation, petroleum and other materials,
such as copper, steel, aluminum and synthetic resins;•

fluctuations in product demand and industry capacity;•

uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact offluctuations in product demand, exchange rates and/or price of raw materials;•

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 orotherwise exiting underperforming businesses and to strengthen competitiveness and other cost
reduction measures;•

general socio-economic and political conditions and the regulatory and trade environment of Hitachi’smajor markets, particularly Japan, Asia, the United States and Europe, including, without limitation,
direct or indirect restrictions by other nations on imports, or differences in commercial and businesscustoms 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 notcontrol, 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 ofwhich 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 in Japan by earthquakes 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 and that of its customers;•

uncertainty as to the accuracy of key assumptions Hitachi uses to valuate 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 Hitachi’s periodic
filings with the U.S. Securities and Exchange Commission and in other materials published by Hitachi.

- more -- 16 -

2. Management Policy(1) Basic Management Policy
Amid intensifying competition in world markets, the Hitachi Group has been expanding its
business through development of Hitachi and its related companies (subsidiaries and affiliatedcompanies). Hitachi aims to improve its development by delivering competitive products andservices imbuing higher value for customers. By taking full advantage of the diverse
resources of the Hitachi Group while at the same time reviewing and restructuring businesses,
Hitachi will bolster its competitiveness. This process will be consistent with Hitachi’s basic
management policy, which is to increase shareholder value by meeting the expectations ofcustomers, shareholders, employees and other stakeholders.
(2) Medium- and -Long-term Management Strategy
Hitachi will focus more than ever on the Social Innovation Business, which includes
information and telecommunication systems, power systems, environmental, industrial andtransportation systems, and social and urban systems, as well as the sophisticated materials
and key devices that support them, in order to build a more stable earnings base. The
Company will concentrate on three key areas— transforming into a truly global company;
fusing information and telecommunication systems and power and industrial systems; andexpanding environmental businesses—capitalizing fully on the Hitachi Group’s business basebuilt up over the years.
(3) Issues Facing Hitachi GroupThe Hitachi Group aims to achieve strong growth by implementing the following
measures to improve its earnings and drive growth going forward. Hitachi sees
increasing demand for addressing global environmental problems, particularly inindustrialized nations, and the building of social infrastructure in emerging nations as
perfect business opportunities in this context.
・ Hitachi will channel business resources to the Social Innovation Business. It intends
to leverage the collective strengths of the Hitachi Group to bring about social
innovation through the fusion of information and telecommunication systems andsocial infrastructure businesses.
・ Hitachi will draw upon the Hitachi Group’s outstanding environmental technologies
to provide products and services with a lower environmental impact and thereby help
protect the natural environment.
・ Hitachi plans to develop the Social Innovation Business globally. In order to address
customer needs, Hitachi will team up with local partners and develop more locally
based operations. Furthermore, Hitachi will recruit and develop diverse humanresources from various regions.
・ The year 2010 marks the centenary of Hitachi’s foundation. In order to engineer therevival of a strong Hitachi for the next 100 years, the Company will implement thefollowing measures.
・ Adhering to its corporate credo of contributing to society through technology, Hitachi- more -- 17 -

will engage in advanced R&D activities and fully utilize intellectual property.
・ Hitachi will continuously seek to optimize its business portfolio, restructuringbusinesses as necessary, including withdrawal and divestment, based on businessprofitability and on synergies with the Social Innovation Business.
・ Hitachi will work to improve its operations by continuously implementing
cost-reduction programs to decrease fixed, procurement and other costs. Additionally,
Hitachi will work to improve cash flows by reducing inventories, quickly collecting
accounts receivables and taking other actions.
・ Hitachi will rigorously strengthen MONOZUKURI (manufacturing) capabilities toachieve high quality so that it can provide safe and reliable products to customers.
Recognizing the importance of living up to the trust placed within society, Hitachi
will ensure that it remains steadfast and compliant, so as not to infringe upon any
laws or regulations in order to raise the value of the Hitachi brand.

- more -- 18 -

Consolidated Statements of Operations
The years ended March 31
Yen(B)/(A)(millions)
X100(%)
2009 (A)2010 (B)U.S. Dollars(millions)
2010

Revenues

10,000,369

8,968,546

90

96,436

Cost of sales

7,816,180

6,849,255

88

73,648Selling, general andadministrative expenses

2,057,043

1,917,132

93

20,614

Operating income

127,146

202,159

159

2,174

33,28418,18555

196(Interest and dividends)

27,721

17,81664

192(Other)

5,563

369

7

4

Other deductions

450,301

156,76435

1,686(Interest charges)

33,80926,25278

282(Other)416,492

130,51231

1,403

Income (loss) before income taxes(289,871)

63,580-684

505,249

147,97129

1,591(795,120)(84,391)-(907)

Less: Net income (loss) attributable tononcontrolling interests(7,783)

22,570-243

Net income (loss) attributable to
Hitachi, Ltd.

(787,337)(106,961)-(1,150)

Other income

Income taxes

Net income (loss)- more -- 19 -

Consolidated Balance Sheets
Yen(millions)
As of March 31,

As of March 31,

2009 (A)2010 (B)(B)-(A)

U.S. Dollars(millions)
As of March 31,

2010

Total Assets
Current assets
Cash and cash equivalents
Short-term investments

9,403,709
5,065,399
807,926
8,654

8,951,762 (451,947)
4,775,197 (290,202)
577,584 (230,342)
53,57544,921

96,256
51,3466,211576

Trade receivables
Notes
Accounts
Investments in leases
Inventories
Other current assets
Investments and advances
Property, plant and equipment
Intangible assets
Other assets

105,218
2,028,060
170,340
1,456,271
488,930
693,487
2,393,946
455,095
795,782

104,353(865)
2,138,139 110,079
194,108
23,7681,222,077 (234,194)
485,361(3,569)712,993
19,5062,219,804 (174,142)
505,348
50,253
738,420 (57,362)

1,122
22,991
2,087
13,141
5,219
7,667
23,8695,434
7,940

9,403,709
4,621,904

8,951,762 (451,947)
3,931,203 (690,701)

96,25642,271

1,530,457

755,181 (775,276)

8,120

39,811
1,138,770
386,519
1,526,347
2,602,453
1,289,652
1,049,597
263,204
2,179,352
1,049,951
282,033
560,066
820,440(586,351)(179,737)(405,082)

25,737 (14,074)
1,229,546
90,776385,199(1,320)1,535,540
9,193
2,752,714 150,261
1,611,962 322,310
905,183 (144,414)
235,569 (27,635)
2,267,845
88,493
1,284,658 234,707
408,810 126,777
620,577
60,511
713,479 (106,961)(432,057) 154,294(182,783)(3,046)(272,410) 132,672

277
13,221
4,142
16,511
29,59917,333
9,733
2,533
24,385
13,814
4,396
6,673
7,672
(4,646)(1,965)(2,929)12(1,544)(26,237)
1,129,401

25,56425,552(2,428)(884)(26,151)86
983,187 (146,214)

275
(26)
(281)
10,572

Total Liabilities and Equity
Current liabilities
Short-term debt and current portionof long-term debt
Trade payables
Notes
Accounts
Advances received
Other current liabilities
Noncurrent liabilities
Long-term debt
Retirement and severance benefits
Other liabilities
Total equity
Total Hitachi, Ltd. stockholders' equity
Common stock
Capital surplus
Legal reserve and retained earnings
Accumulated other comprehensive loss
(Foreign currency translation adjustments)(Pension liability adjustments)(Net unrealized holding gain on
available-for-sale securities)(Cash flow hedges)
Treasury stock
Noncontrolling interests

Note: Intangible assets, formerly included in Other assets, are separately disclosed.
Accordingly, figures as of March 31, 2009 have been reclassified.

- more -- 20 -

Consolidated Statements of Stockholders' Equity
The years ended March 31
Yen

U.S. Dollars(millions)(millions)

2009

2010

2010

Hitachi, Ltd. stockholders' equity
Common stock
Balance at beginning of year
Issuance of common stock
Conversion of convertible bonds
Balance at end of year

282,033－－
282,033

282,033
126,776
1
408,810

3,033
1,363
0
4,396

Capital surplus
Balance at beginning of year
Issuance of common stock
Conversion of convertible bonds
Gain (loss) on sales of treasury
Ｅquity transactions and other
Balance at end of year

555,410
－
－
(187)
4,843
560,066

560,066
125,6441(136)(64,998)
620,577

6,022
1,351
0
(1)
(699)
6,673

Retained earnings
Balance at beginning of year
Net income (loss) attributable to Hitachi, Ltd.
Cash dividends
Ｅquity transactions and other
Balance at end of year

1,626,497(787,337)(19,944)
1,224
820,440

820,440(106,961)－－
713,479

8,822(1,150)－－
7,672

Accumulated other comprehensive loss
Balance at beginning of year
Current-period change
Balance at end of year

(267,198)(319,153)(586,351)(586,351)
154,294(432,057)(6,305)
1,659(4,646)

Treasury stock
Balance at beginning of year
Current-period change
Balance at end of year

(26,130)(107)(26,237)(26,237)
86(26,151)

(282)
1
(281)

1,049,951

1,284,658

13,814

1,142,508

1,129,401

12,144

Total Hitachi, Ltd. stockholders' equity
Noncontrolling interest
Balance at beginning of year
Net income (loss) attributable tononcontrolling interests
Dividends to noncontrolling interests
Ｅquity transactions and other
Balance at end of year

(7,783)

22,570243(28,406)
23,082
1,129,401(24,618)(144,166)
983,187(265)(1,550)
10,572

Total equity

2,179,352

2,267,845

24,385- more -- 21 -

Consolidated Statements of Cash FlowsThe years ended March 31
Yen
U.S. Dollars(millions)(millions)
2009
2010
2010
Cash flows from operating activities
Net income (loss)(795,120)(84,391)(907)

Depreciation

478,759441,697

4,749

Amortization

178,164

116,065

1,248

Deferred income taxes

403,968

60,440650

Loss on disposal of tangible rental assets and other property

24,483

22,670244

Decrease (increase) in receivables

342,008(138,785)(1,492)

Decrease (increase) in inventories(57,206)

205,848

2,213

Increase (decrease) in payables(359,230)

62,295670

Other
Net cash provided by operating activities

343,121558,947

112,460
798,299

1,209
8,584

Purchase of property, plant and equipment, net(408,999)(265,438)(2,854)Purchase of intangible assets, net(107,949)(85,092)(915)

Purchase of tangible assets and software to be leased, net
Proceeds from sale (purchase) of investments in securities
and shares of consolidated subsidiaries resulting indeconsolidation, net(323,678)(248,669)(2,674)52,434(129,579)(1,393)

Collection of investments in leases

234,984

172,327

1,853

3,200

25,856278(550,008)(530,595)(5,705)

Increase (decrease) in interest-bearing debt

340,690(459,488)(4,941)

Proceeds from issuance of common stock‐

252,420

2,714

Dividends paid to stockholders(19,826)

(134)

(1)

Dividends paid to noncontrolling interests(28,406)(24,852)

(267)

Other

(8,070)(270,290)(2,906)284,388(502,344)(5,402)

Effect of exchange rate changes on cash and cash equivalents(46,361)

4,298

46

Net increase (decrease) in cash and cash equivalents

246,966(230,342)(2,477)

Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

560,960
807,926

807,926
577,584

8,687
6,211

Adjustments to reconcile net income (loss) to net cash
provided by operating activities

Cash flows from investing activities

Other
Net cash used in investing activities
Cash flows from financing activities

Net cash provided by (used in) financing activities

Note: The Company has changed the presentation of some items starting from Fiscal 2009.
Figures for Fiscal 2008 have been reclassified.

- more -- 22 -

Segment Information(1) Business Segments
The years ended March 31
Yen(B)/(A)(millions)
X100
2009 (A)2010 (B)(%)
1,945,351
1,705,587
88
17%
17%
862,389
882,135102
7%
9%1,334,246
1,250,225
94
12%
12%
983,821998,63210210%
9%724,689583,63681
6%
6%1,561,045
1,249,327
80
14%
12%
681,750
638,82894
6%
6%
978,297754,88977
9%
7%
1,103,860
929,2588410%
9%401,317419,650105
3%
4%830,834
763,66592
7%
8%
11,407,599
10,175,832
89
100%
100%

Information & Telecommunication
Systems
Power Systems
Social Infrastructure &Industrial Systems
Electronic Systems & Equipment
Construction Machinery
High Functional Materials &Components
Automotive Systems
Revenues
Components & Devices
Digital Media & Consumer
Products
Financial Services
OthersSubtotal
Eliminations & Corporate items
Total

U.S. Dollars(millions)2010
18,3409,485
13,443
10,7386,276
13,434
6,869
8,117
9,992
4,512
8,211
109,418(1,407,230)(1,207,286)-(12,982)

10,000,369

8,968,546

90

96,436

Notes 1: Revenues by business segment include intersegment transactions.
2: The Company has changed the business segment classification starting from Fiscal 2009.
Figures for Fiscal 2008 have been restated to reflect the reclassification.

- more -- 23 -

Information & Telecommunication
Systems
Power Systems
Social Infrastructure &Industrial Systems
Electronic Systems & Equipment
Construction Machinery
High Functional Materials &Components
Operatingincome (loss)

Automotive Systems
Components & Devices
Digital Media & Consumer
Products
Financial Services
OthersSubtotal

The years ended March 31
Yen(B)/(A)(millions)
X100
2009 (A)2010 (B)(%)
138,452
94,592
68
96%
41%
3,485
22,075633
2%
9%34,40642,086122
24%
18%
25,755(5,218)18%(2%)
51,337
17,6493435%
8%25,25744,412176
17%
19%(60,507)(5,486)
(42%)
(2%)
5,799
1,149
20
4%
0%
(110,548)(7,206)
(76%)
(3%)
6,660
8,518
128
5%
4%
24,515
19,42379
17%
8%
144,611
231,994
160
100%
100%

Eliminations & Corporate items
Total

U.S. Dollars(millions)
2010
1,017
237
453
(56)
190
478
(59)
12
(77)
92
209
2,495

(17,465)(29,835)-(321)

127,146

202,159

159

2,174

- more -- 24 -

(2) Geographic Segments

Outside customer sales
Intersegment
transactions

Japan
Total

Outside customer sales
Intersegment
transactions

Asia
Total

Outside customer sales
North
America

Intersegment
transactions

Total
Revenues
Outside customer sales
Intersegment
transactions

EuropeTotal

Outside customer sales
Intersegment
transactions

Other
Areas
Total

Subtotal
Eliminations &Corporate items
Total

The years ended March 31
Yen(B)/(A)(millions)
X100
2009 (A)2010 (B)(%)
6,683,143
6,006,775
90
55%
57%
1,302,509
1,011,215
78
9%
11%
7,017,990
7,985,652
88
66%
66%
1,389,095
1,542,526
90
13%
13%
499,947
591,61185
5%
5%1,889,042
2,134,137
89
18%
18%
852,100
670,897
79
7%
6%
121,325
104,69886
1%
1%
973,425775,595
80
8%
7%
738,662
717,30097
6%
7%51,31833,64866
0%
0%789,980
750,94895
6%
7%
183,938
184,479
100
2%
2%
8,367
3,090
37
0%
0%
192,305
187,56998
2%
2%
12,075,499
10,621,144
88
100%
100%

U.S. Dollars(millions)2010
64,58910,87375,462
14,937
5,376
20,312
7,214
1,126
8,340
7,713
362
8,075
1,984
33
2,017
114,206(2,075,130)(1,652,598)-(17,770)

10,000,369

8,968,546

90

96,436- more -- 25 -

Japan
Asia
North America
Operating
Europeincome (loss)
Other Areas
Subtotal

The years ended March 31
Yen(B)/(A)(millions)
X100
2009 (A)2010 (B)(%)
74,370149,429201
49%
57%
76,74289,399
116
51%
34%
7,182
4,835
67
5%
2%
(17,129)
11,784
(11%)
5%
9,434
6,273
66
6%
2%
150,599
261,720
174
100%
100%

Eliminations & Corporate items
Total

U.S. Dollars(millions)
2010
1,607
961
52
127
67
2,814

(23,453)(59,561)-(640)

127,146

202,159

159

2,174

Notes 1: The information above shows revenues and profit based on the country location of the Company or its subsidiaries,
in accordance with the requirements of the Financial Instruments and Exchange Law of Japan.

(3) Revenues by Market

Japan
Asia
North America
EuropeOther Areas
Outside Japan
Total

The years ended March 31
Yen(B)/(A)(millions)
X100
2009 (A)2010 (B)(%)
5,861,448
5,313,790
91
59%
59%
1,911,290
1,699,071
89
19%
19%
899,550
729,698819%8%904,425824,697919%9%423,656
401,29095
4%
5%4,138,921
3,654,756
88
41%
41%
10,000,369
8,968,546
90
100%
100%

- more -U.S. Dollars(millions)2010
57,13818,270
7,846
8,868
4,315
39,29896,436

- 26 -Per Share Information
The years ended March 31
2009

2010

2010

(Yen)

(Yen)

(U.S.Dollars)

315.86287.13

3.09

Basic

(236.86)(29.20)(0.31)

Diluted(236.87)(29.20)(0.31)

Hitachi, Ltd. stockholders' equity per share
Net income (loss) attributable to Hitachi, Ltd.
stockholders per share

The reconciliations of the numbers and the amounts used in the basic and diluted
net income (loss) attributable to Hitachi, Ltd. stockholders per share computations are as follows:
The years ended March 31

Weighted average number of shares on whichbasic net income (loss) per share is calculated

2009

2010

2010

(Number of shares)(Number of shares)

3,323,996,973

3,662,578,076

0-

3,323,996,973

3,662,578,076(Millions of yen)

(Millions of yen) (Millions of U.S. dollars)

Effect of dilutive securities:
Stock options
Number of shares on which diluted net income (loss)
per share is calculated

Net income (loss) attributable to Hitachi, Ltd.
stockholders(787,337)(106,961)(1,150)(8)

00(787,345)(106,961)(1,150)Effect of dilutive securities:
Other
Net income (loss) attributable to Hitachi, Ltd.
stockholders on which diluted net income (loss) per
share is calculated- more -- 27 -

Unconsolidated Financial Statements Summary
Income Statements2009(A)The years ended March 31
Yen(B)/(A)(millions)X100(%)
2010(B)

U.S. Dollars(millions)
2010

Revenues

2,610,055

1,938,810

74

20,847

Cost of sales

2,116,177

1,471,552

70

15,823Gross Profit
Selling, general andadministrative expenses
Operating income (loss)

493,878

467,258

95

5,024

526,103463,757

88

4,987(32,225)

3,500

-

38

Other income

292,172

98,66534

1,061

Other deductions

55,23242,961

78462

Ordinary income

204,71459,20429

637

Extraordinary gain

5,730

13,684239

147

Extraordinary loss

385,213106,10728

1,141(174,767)(33,217)-(357)(8,784)(3,537)

40(38)

Income (loss) before income taxes
Current income taxes
Deferred income taxes

128,601

5,440

4

58

Net income (loss)(294,584)(35,120)-(378)(88.62)(9.59)-(0.10)

Basic EPS (yen and dollars)

Balance Sheets

Current assets

Yen(millions)
As of March 31
31,
As of March 31
31,
2009(A)
2010(B)
1,881,472
1,314,489(566,983)

U.S. Dollars(millions)
As of March 31
31,
2010
14,134((B)-(A))( )(Quick assets)

1,663,126

1,121,264(541,862)

12,057(Inventories)

218,174

193,224(24,949)

2,078

171

0

(171)

0

1,792,234

2,013,208

220,974

21,647

1,380,979

1,695,694

314,714

18,233(Deferred tax assets)
Fixed assets(Investments)(Others)

411,254

317,514(93,739)

3,414

Total assets

3,673,706

3,327,698(346,008)

35,782Current liabilities

2,250,149

1,700,390(549,758)

18,284

Fixed liabilities

759,031739,623(19,407)

7,953(Debentures)

185,000

229,998

44,9982,473(Long-term loans)

318,146

387,608

69,462

4,168(Deferred tax liabilities)

10,91814,504

3,586

156(Others)

244,966

107,512(137,454)

1,156

Total liabilities

3,009,180

2,440,013(569,166)

26,237

Net assets
Liabilities and net assets

664,526

887,684

223,157

9,545

3,673,706

3,327,698(346,008)

35,782###

May 11, 2010
Hitachi, Ltd.

Supplementary Information for the Year ended March 31, 2010
1. Summary(1)Consolidated Basis
Fiscal 2008

Fiscal 2010(Forecast)Fiscal 2009

Six months ending September 30(B)

10,000.3
127.1
1.3

8,968.5
202.1
2.3

90%
159%
-

4,300.0
125.0
2.9

104%
-

9,200.0
340.0
3.7

103%
168%
-

Income (loss) before*1
income taxes(289.8)

63.5

-

145.0

-

315.0

495%

*1

Net income (loss)(795.1)(84.3)

-

95.0

-

205.0

-

Net income (loss) attributable*1
to Hitachi, Ltd.

(787.3)(106.9)

-

55.0

-

130.0

-

101
(6.0)

93
(8.4)

-

85

-

85

As of
March 31, 2009

As ofMarch 31, 2010

*1

Revenues
Operating income*1
Percentage of revenues

Dividend payout ratio(%)
Average exchange rate (yen / U.S.$)Net interest and dividends*1*1(B)/(A)(C)/six months ended
Sep. 30, 2009

(A)-

Billions of yen

Cash & cash equivalents,
Short-term investments(billions of yen)

816.5

631.1

Interest-bearing debt
(billions of yen)

2,820.1

2,367.1*2
D/E Ratio (times)*3
Numberb off employeeslJapan
Overseas

1.29
361,796
361
796
234,519
127,277

1.04
359,746359 746
230,948
128,798

Number of consolidated
subsidiaries (Including
Variable Interest Entities)

943

900

403
540

365
535

Japan
Overseas
*2
*3

(C)

Including noncontrolling interests
The Company has changed the number of employees classification and exclude the temporary employees starting from Fiscal 2009.
Figures as of March 31, 2009 have been restated to reflect the reclassification.

(2)Unconsolidated Basis
Fiscal 2008
Revenues*1
Operating income (loss)*1
Ordinary income*1
Net income (loss)*1
Average exchange rate (yen / U.S.$)

Fiscal 2009

(A)

(B)

2,610.0(32.2)
204.7(294.5)101

1,938.8
3.5
59.2(35.1)93

As ofMarch 31, 2009

As ofMarch 31, 2010

Cash & cash equivalents,
Short-term investments(billions of yen)

324.9

98.5

Interest-bearing debt
(billions of yen)

987.9

738.5

37,28331,065*3

Number of employees(B)/(A)74%
29%-- more -(D)(D)/(B)

-

-

-2-

2. Consolidated Revenues by Business Segment *4
Fiscal 2008

(Billions of yen)

Fiscal 2010(Forecast)Fiscal 2009

Six months ending September 30(B)

1,945.3

1,705.5

88%

760.0

96%

1,730.0

101%

862.3

882.1

102%

440.0

113%

880.0

100%

1,334.2

1,250.2

94%

480.0

90%

1,090.087%

Electronic Systems & Equipment

983.8

998.6

102%

500.0

111%

1,070.0107%

Construction Machinery

724.6

583.6

81%

310.0

120%

720.0

123%

1,561.0

1,249.3

80%

660.0

114%

1,400.0112%

Automotive Systems

681.7

638.8

94%

330.0

115%

680.0

106%

Components & Devices

978.2

754.8

77%

410.0

115%

870.0

115%

1,103.8

929.2

84%

460.0

100%

920.0

99%

Financial Services

401.3

419.6

105%

170.0

74%

360.0

86%

Others

830.8

763.6

92%

370.0

101%

780.0

102%

Eliminations & Corporate items(1,407.2)(1,207.2)-(590.0)-(1,300.0)

-

Total

10,000.3

8,968.590%

4,300.0104%

9,200.0

103%

Information &Telecommunication Systems
Power Systems
Social Infrastructure &Industrial Systems

High Functional Materials &Components

Digital Media & Consumer
Products*4(B)/(A)(C)(C)/six months ended
Sep. 30, 2009

(A)

(D)

(D)/(B)The Company has changed the business segment classification starting from Fiscal 2009. Figures for Fiscal 2008 have been restated to reflect the reclassification.

3. Consolidated Operating Income (Loss) by Business Segment *4
Fiscal 2010(Forecast)Fiscal 2009

Fiscal 2008

(Billions of yen)Six months ending September 30(C)/six months ended
Sep. 30, 2009

(A)

(B)

138.4

94.5

68%

29.0

90%

100.0

106%

Power Systems

3.4

22.0

633%

12.0

314%

29.0

131%

Social Infrastructure &Industrial Systems

34.4

42.0

122%

4.0

-

37.0

88%

Electronic Systems & Equipment

25.7

(5.2)

-

6.0

-

28.0

-

Construction Machinery

51.3

17.6

34%

9.0

573%

35.0

198%

High Functional Materials &Components

25.2

44.4

176%

36.0

712%

82.0

185%

Automotive Systems(60.5)

(5.4)

-

7.0

-

17.0

-

Components & Devices

5.7

1.1

20%

26.0

-

54.0

-

(110.5)

(7.2)

-

2.0

-

7.0

-

Financial Services

6.6

8.5

128%

8.0

312%

15.0

176%

Others

24.5

19.4

79%

8.0

109%

20.0

103%

Eliminations & Corporate items(17.4)(29.8)-(22.0)-(84.0)

-

Total

127.1

202.1

159%

125.0

-

340.0

168%

Information &Telecommunication Systems

Digital Media & Consumer
Products(B)/(A)(C)- more -(D)(D)/(B)-3-

4. Consolidated Overseas Revenues by Business Segment *4
Fiscal 2008

(Billions of yen)

Fiscal 2009

Fiscal 2010(Forecast)

(A)

(B)

Information &Telecommunication Systems

(C)

413.6

367.6

89%

Power Systems

336.4

351.2

104%

Social Infrastructure &Industrial Systems

259.9

269.7

104%

Electronic Systems & Equipment

456.0

460.3

101%

Construction Machinery

514.4

417.5

81%

High Functional Materials &Components

544.8

450.9

83%

Automotive Systems

265.5

269.2

101%

Components & Devices

708.2

516.6

73%

Digital Media & Consumer
Products

491.7

415.8

85%

Financial Services

51.1

48.7

95%

Others

96.8

86.7

90%

Total

4,138.9

3,654.7

88%(B)/(A)

4,000.0(C)/(B)109%

5. Overseas Production (Total Revenues of Overseas Manufacturing Subsidiaries) *5
Fiscal 2008
(A)

(B)

2,409.5

2,182.4

91%

Percentage of revenues (%)

24

24

-

Percentage of overseas
revenues (%)

58

60

-

Overseas production(billions of yen)

*5

Fiscal 2009
(B)/(A)

Figures in tables 5, 9 and 10 represent unaudited financial information prepared by the Company for the purpose of this supplementary information.

6. Consolidated Capital Investment by Business Segment (Completion basis, including leasing assets)(Billions of yen)

Fiscal 2008

Fiscal 2009

Fiscal 2010(Forecast)

(A)

(B)

Information &Telecommunication Systems

30.1

24.2

(B)/(A)

80%(C)

Power Systems

28.9

31.1

108%

Social Infrastructure &Industrial Systems

40.3

25.3

63%

Electronic Systems & Equipment

12.0

10.3

86%

Construction Machinery

66.7

32.8

49%

High Functional Materials &Components

104.3

49.7

48%

Automotive Systems

39.6

15.2

38%

Components & Devices

62.6

39.0

62%

Digital Media & Consumer
Products

27.9

14.7

53%

Financial Services

361.4

295.6

82%

Others

37.7

25.2

67%

Eliminations & Corporate items(23.6)(17.1)

-

Total

788.4

546.3

69%

630.0

115%

Internal use Assets

424.0

247.4

58%

296.0

120%

Leasing Assets

364.4

298.9

82%

334.0

112%

- more -(C)/(B)*4

-4-

7. Consolidated Depreciation by Business Segment *4
Fiscal 2008

(Billions of yen)

Fiscal 2009

Fiscal 2010(Forecast)

(A)

(B)

Information &Telecommunication Systems

40.2

37.7

94%

Power Systems

20.7

22.0

107%

Social Infrastructure &Industrial Systems

26.2

25.3

97%

Electronic Systems & Equipment

12.4

16.1

130%

Construction Machinery

35.9

39.1

109%

High Functional Materials &Components

81.8

78.5

96%

Automotive Systems

38.7

35.9

93%

Components & Devices

77.2

62.9

81%

Digital Media & Consumer
Products

36.8

23.8

65%

Financial Services

69.5

65.2

94%

Others

36.6

32.8

90%

Eliminations & Corporate items

2.1

1.9

90%

478.7

441.7

92%

410.0

93%

Internal use Assets

392.2

356.4

91%

345.0

97%

Leasing Assets

86.5

85.2

99%

65.0

76%

Total

(B)/(A)(C)

8. Consolidated R&D Expenditure by Business Segment *4
Fiscal 2008

(C)/(B)(Billions of yen)

Fiscal 2009

Fiscal 2010(Forecast)

(A)

(B)

Information &Telecommunication Systems

94.0

82.2

87%

Power Systems

15.3

17.6

115%

SocialS
i l IInfrastructuref&Industrial Systems

22.8

19.9

88%

Electronic Systems & Equipment

30.8

44.1

143%

Construction Machinery

15.1

15.4

102%

High Functional Materials &Components

50.9

44.8

88%

Automotive Systems

63.1

38.4

61%

Components & Devices

78.9

69.1

88%

Digital Media & Consumer
Products

22.9

18.7

82%

Financial Services

0.2

0.1

43%

Others

4.5

4.6

104%

Corporate items

17.4

17.0

97%

Total

416.5

372.4

89%

394.0

106%

4.2

4.2

-

4.3

-

Percentage of revenues (%)(B)/(A)(C)- more -(C)/(B)-5-

9. Consolidated Balance Sheets by Financial and Non-Financial Services *4*5
(Billions of yen)

Total Assets
Manufacturing, Services and Others
Cash and cash equivalents
Short-term investments
Trade receivables
Inventories
Investments and advances
Property, plant and equipment
Other assets
Total
Financial Services
Cash and cash equivalents
Trade receivables
Investments in leases
Property, plant and equipment
Other assets
Total
Eliminations
Total Assets

As ofMarch 31,
2009

As of
March 31,2010

Total Liabilities and Equity

24.9
595.4
651.1
217.8
425.5
1,914.8(587.4)

Manufacturing, Services and Others
Short-term debt
549.1
Trade payables
49.2
Long-term debt
1,943.9
Other liabilities
1,222.1
Total
607.6
2,027.3 Financial Services
Short-term debt
1,269.8
Trade payables
7,669.4
Long-term debt
Other liabilities
28.4
Total
556.1
563.9 Eliminations
194.6 Liabilities
446.2 Total equity
Total Hitachi, Ltd. Stockholders' equity
1,789.4
Noncontrolling interests(507.1)

9,403.7

8,951.7 Total Liabilities and Equity

783.0
2.7
1,719.5
1,456.4
590.4
2,178.7
1,345.3
8,076.2

10. Consolidated Statements of Operations by Financial and Non-Financial Services *4*5
(Billions of yen)

Revenues
Manufacturing, Services Cost of sales and selling,
and Others
general and administrative expenses
Operating income
Revenues
Cost of sales and selling,
Financial Services
general and administrative expenses
Operating income
Revenues
Cost of sales and selling,
Eliminations
general and administrative expenses
Operating income
Revenues
Cost of sales and selling,
Total
general and administrative expenses
Operating income

Fiscal 2008 Fiscal 2009
9,805.0
8,765.5- more -9,682.9

8,572.6

122.0
401.3

192.9
419.6

394.6

411.1

6.6
(205.9)8.5(216.6)(204.4)(217.3)(1.5)
10,000.3

0.7
8,968.5

9,873.2

8,766.3

127.1

202.1

As of
March 31,
2009

As of
March 31,2010

1,276.0
1,083.8863.0
2,908.0
6,131.0

698.3
1,165.4
1,016.7
2,763.5
5,644.0

530.8
213.7
531.4
395.7
1,671.7(578.3)7,224.3
2,179.3
1,049.9
1,129.4

291.1
210.9
653.8
379.3
1,535.3(495.4)
6,683.9
2,267.8
1,284.6983.1

9,403.7

8,951.7

-6-

11. Information & Telecommunication Systems(1)Revenues and Operating Income*6
Fiscal 2008

Revenues
Software & Services
SoftwareServices
Hardware
Storage*7
Servers*8
PCs*9
Telecommunication
OthersOperating income
Software & Services
Hardware
*6

*7
*8
*9

(Billions of yen)
Fiscal 2010 (Forecast)Fiscal 2009

(A)

(B)

1,945.3
1,286.8
162.3
1,124.5
658.5
216.7
72.5
37.0
151.1
181.2
138.4
106.7
31.7

1,705.5
1,139.6
152.6
987.0
565.8
194.4
57.0
28.9
141.4
144.1
94.5
77.1
17.3

Six months ending September 30(B)/(A)X100

(C)

88%
89%
94%
88%
86%
90%
79%
78%
94%
80%
68%
72%
55%

Total

(C)/six months ended
Sep. 30, 2009

(D)

(D)/(B)X100

760.0
517.0

96%
98%

1,730.0
1,160.0

101%
102%

243.0

91%

570.0

101%

29.0

90%

100.0
82.0
18.0

106%
106%
104%

Figures for each product exclude intra-segment transactions.
The Company has changed the business segment classification starting from Fiscal 2009.
Upon the business segment classification change, this segment exclude the Hard Disk Drives business and etc.
Figures for Fiscal 2008 have been restated to reflect the reclassification.
Figures for Storage include disk array subsystems, etc.
Figures for Servers include general-purpose computers, UNIX servers, etc.
Figures for PCs include PC servers, client PCs (only commercial use), etc.

(Billions of yen)

(2)Storage Solutions
Fiscal 2008

Revenues

Fiscal 2010 (Forecast)Fiscal 2009

(A)

(B)

340.0

304.0

Six months ending September 30(B)/(A)X100

(C)

89%

134.0

Total

(C)/six months ended
Sep. 30, 2009

(D)

94%

(D)/(B)X100

292.0

12. Hard Disk Drives*10*11
Period recorded forconsolidated accounting
purposes

Operatingincome(loss)

Three months ending June 30

Total
(C)
Jan. 2009
to Dec. 2009

(C)/(A)X100

Billions of
yen

573.3

97.7

451.7

79%

132.3

135%

Millions of
U.S. dollars

5,574

1,026

4,821

86%

1,459

142%

Billions of
yen

21.4

(5.4)

9.2

43%

19.7

―

Millions of
U.S. dollars

208

(57)

106

51%

217

―

91,20048,20036,200
5,700
1,140
―

19,200
10,200
7,600
1,100
220
―

91,40050,60031,700
5,500
2,070
1,550

100%
105%
88%
97%
182%
―

26,50015,700
7,800
1,500
780
800

138%
154%
102%
130%
360%
―

Consumer and 2.5-inch
Commercial
3.5-inchServers
Emerging
External HDD

*11
*12

Fiscal 2010

(B)
Jan. 2009
to Mar. 2009

Shipments (thousand units)*10

Fiscal 2009
Three months
ended June 30(A)
Jan. 2008
to Dec. 2008

Shipment Period

Revenues

Fiscal 2008

*12

(D)(Preliminary)(D)/(B)X100

Jan. 2010
to Mar. 2010

The Hard Disk Drive operations are conducted by Hitachi Global Storage Technologies (Hitachi GST), which has a December 31 fiscal
year-end, different from Hitachi's March 31 year-end. Hitachi's results for the twelve months ended March 31, 2010 include the operating results ofHitachi GST for the twelve months ended December 31, 2009.
Hitachi GST's operating currency is U.S. dollar. Yen figures include yen / dollar conversion fluctuation.
Shipment less than 100,000 units have been rounded, with the exception of Emerging and External HDD, where shipment less than 10,000 units have been rounded.

###96%