Outline of Consolidated Financial Results for Fiscal 2011
May 10, 2012

Hitachi, Ltd.

Outline of Consolidated Financial Results for Fiscal 2011
May 10, 2012

Contents
1. Outline of Consolidated Financial
Results for Fiscal 2011
2. Outlook for Fiscal 2012
3. Overview by Business Segment

Copyright © 2012,2010, Hitachi, Ltd., All rights reserved.

2

Outline of Consolidated Financial Results for Fiscal 2011
May 10, 2012

Contents
1. Outline of Consolidated Financial
Results for Fiscal 2011
2. Outlook for Fiscal 2012
3. Overview by Business Segment

Copyright © 2012,2010, Hitachi, Ltd., All rights reserved.

3

1-1. Financial Results Highlights
Highlights of Fiscal 2011 Results
Rose 4% YoY, rose 2% compared to previous forecast*
Revenues

Revenues were higher in Others, Information & Telecommunication Systems and Automotive
Systems
Revenues were higher than forecast in all segments, except Digital Media & Consumer
Products and Others

Declined 32.2 billion yen YoY, rose 12.2 billion yen compared to previous
forecast*
Operating income

Net other income

Posted operating income of 412.2 billion yen, despite the impact of the Great East Japan
Earthquake and floods in Thailand
Operating income was higher than forecast in all segments except Digital Media & Consumer
Products, Construction Machinery, and Power Systems

Improved 157.7 billion yen YoY, increased 55.4 billion yen compared toprevious forecast*Booked a gain on the sales for the transfer of HDD business to Western Digital Corporation
Higher than previous forecast, reflecting a gain on the sales for the transfer
of small and medium-sized display business and improvement in exchange losses, etc.

Net income
attributable to
Hitachi, Ltd.

Increased 108.3 billion yen YoY, and increased 67.1 billion yen compared
to previous forecast*Free cash flowsDecreased from fiscal 2010 due to increases in accounts receivable and inventories

Posted record earnings for the second straight fiscal year

Positive 251.5 billion yen (329.6 billion yen YoY decrease)* Previous forecast announced on March 15, 2012
Copyright © 2012, Hitachi, Ltd., All rights reserved.

4

1-2. Consolidated Statements of Operations
Year overyear

Billions of yen
Previous
forecast
Comparison*

Fiscal 2010

Fiscal 2011

9,315.8

9,665.8+350.0[104%]+165.8[102%]

Operating income

444.5

412.2

(32.2)+12.2

Net other income(deductions)(12.3)

145.4+157.7+55.4

Income before income taxes

432.2

557.7

+125.5+67.7

Income taxes

129.0

144.9

+15.8

+14.9

Net income

303.1

412.8

+109.6+52.8

Net income attributable
to noncontrolling interests

64.2

65.6

+1.3

(14.3)Net income attributable
to Hitachi, Ltd.

238.8

347.1

+108.3+67.1

Revenues* Previous forecast announced on March 15, 2012

Copyright © 2012, Hitachi, Ltd., All rights reserved.

51-3. Impacts of the Great East Japan Earthquake and Floods in Thailand
Billions of yen(320.0) [Earthquake:(240.0), Floods:(80.0)]
Revenues
Operating income(loss)
Other deductions
Net income (loss)
attributable to
Hitachi, Ltd.

Customer delays in inspecting products, drop in capacity utilization
due to problems securing parts and components, etc.

(95.0) [Earthquake:(75.0), Floods:(20.0)]
Customer delays in inspecting products, drop in capacity utilization
due to problems securing parts and components, etc.

(5.0) [Earthquake:(5.0)]
Impact of natural disaster on equity-method affiliates, etc.

(80.0) [Earthquake:(65.0), Floods:(15.0)]

Copyright © 2012, Hitachi, Ltd., All rights reserved.

6

1-4. Major Factors for Change in Operating income (Year over Year)
Billions of yen

Operating income

444.5

Lower sales
prices :(180.0)Effect offoreign exchange
movements :(49.0)

Impact of
the earthquake andfloods :(20.0)

Improved capacity
utilization, etc. :
+16.7

412.2
Material
procurement cost
cutting :+200.0Fiscal 2010 Fiscal 2011
Copyright © 2012, Hitachi, Ltd., All rights reserved.

71-5. Major Factors of Net income attributable to Hitachi, Ltd.
Billions of yen

Income taxes :(144.9)当社に帰属するNet
incomeOperating
当期純利益to→ attributable
incomeHitachi, Ltd.

Equity in net
earnings
of affiliatedcompanies* :
+4.4

412.2

347.1

Fiscal 2011
Operating
Net income
incomeattributable to
Hitachi, Ltd.

Gain on securities,
loss on disposalof fixed assets, etc. :+200.9Structuralreform-related
expenses :(54.9)

Impact of the earthquake(Other deductions) :(5.0)

Net income attributable
to noncontrollinginterests :(65.6)* The impact of the earthquake is not included in figures for equity in net earnings of affiliatedcompanies.

Copyright © 2012, Hitachi, Ltd., All rights reserved.

8

1-6. Major Factors of Net income attributable to Hitachi, Ltd.
(Year over Year)
Increasing structuralreform-related
expenses :(14.0)

Billions of yen
Net income attributable
to Hitachi, Ltd.

347.1
Lower operating
income * :(12.2)

238.8

Net income
attributable tononcontrollinginterests :(1.3)

Improved equity in
net earnings ofaffiliatedcompanies* :+8.5

Gain (loss) on securities,
loss on disposalof fixed assets, etc. :+143.1

Increasing of income taxes :(15.8)
Impact of the earthquake andfloods in Thailand : 0.0
Operating income (loss)
Other income: (20.0): +20.0* The impact of the earthquake is not included in figures for lower operating income,and improved equity in net earnings of affiliated companies.

Fiscal 2010 Fiscal 2011

Copyright © 2012, Hitachi, Ltd., All rights reserved.

91-7. Revenues by Market
Billions of yen

Fiscal 2010

Ratio

Fiscal 2011

Ratio

Year over yearJapan5,269.2

57%

5,534.4

57%

105%

Outside Japan

4,046.5

43%

4,131.443%

102%

2,073.722%2,000.9

21%

96%

China

1,188.5

13%

1,073.4

11%

90%

North America

781.1

8%

869.0

9%

111%

Europe

760.0

8%

761.1

8%

100%

Other Areas

431.6

5%

500.2

5%

116%

9,315.8100%

9,665.8

100%

104%

Asia

Total

Ratio of overseas revenues 43 %  43 %Copyright © 2012, Hitachi, Ltd., All rights reserved. 10

1-8. Consolidated Balance Sheets
Billions of yen
As of March 31,
2011

As of March 31,
2012

Change fromMarch 31, 2011

Total assets

9,185.6

9,418.5+232.8

Total liabilities

6,744.2

6,644.5(99.7)

2,521.5

2,396.4(125.0)Total Hitachi, Ltd.
stockholders’ equity

1,439.8

1,771.7+331.9Noncontrolling interests

1,001.5

1,002.2

+0.6

15.7%

18.8%

3.1 points
improvement

1.03 times

0.86 times

0.17 points
improvement

Interest-bearing debt

Total Hitachi, Ltd.
stockholders’ equity ratio

D/E ratio(Including noncontrolling interests)

Copyright © 2012, Hitachi, Ltd., All rights reserved. 11

1-9. Consolidated Statements of Cash Flows
Billions of yen
Fiscal 2010

Fiscal 2011

Year over year

Cash flows
from operating activities

841.5

447.1

(394.3)

Cash flows
from investing activities(260.3)(195.5)

+64.7

581.2

251.5

(329.6)(584.1)(167.8)+416.3

Free cash flows
Cash flows
from financing activities

Copyright © 2012, Hitachi, Ltd., All rights reserved. 12

1-10. Summary of Financial Statements
by Financial and Non-Financial Services
Summary Consolidated Balance Sheets

Billions of yen
Manufacturing,Services and Others

Financial Services

Total assets

7,994.7

1,950.6

9,418.5

Total liabilities

5,467.6

1,693.8

6,644.5

1,422.8

1,220.0

2,396.4

1,635.8

146.6

1,771.7

Noncontrolling interests

891.3

110.2

1,002.2

Total Hitachi, Ltd. stockholders’ equity ratio

20.5%

7.5%

18.8%

0.56 times

4.75 times

0.86 times

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

D/E ratio(Including noncontrolling interests)

Summary Consolidated Statements of Cash Flows

Total＊

Billions of yen

Manufacturing,Services and Others

Financial Services

Cash flows from operating activities

442.7

17.8

447.1

Cash flows from investing activities(229.6)

14.4(195.5)

Free cash flows

213.1

32.3

251.5

Cash flows from financing activities(138.6)0.7(167.8)

Total** Total figures exclude inter-segment transactions.
Copyright © 2012, Hitachi, Ltd., All rights reserved. 13

1-11. Consolidated Capital Expenditure, Consolidated R&D Expenditure(1) Consolidated Capital Expenditure (Completion basis)
Fiscal 2010
Total

Billions of yen

Fiscal 2011

Year over year

556.8

649.2

117%

Internal use Assets

273.1

377.2

138%

Leasing Assets

283.7

271.9

96%

(2) Consolidated R&D ExpenditureBillions of yen

Fiscal 2010
Total
Percentage of revenues

Fiscal 2011

Year over year

395.1

412.5

104%

4.2%

4.3%

-

Copyright © 2012, Hitachi, Ltd., All rights reserved. 14

1-12. Revenues by Business Segment
Billions of yen
Fiscal 2010*1

Fiscal 2011*1

Year over year

Previous forecast
Comparison*2

1,652.0

1,764.2

107%

104%

813.2

832.4

102%

104%

Social Infrastructure & Industrial Systems

1,156.9

1,204.9

104%

101%

Electronic Systems & Equipment

1,079.3

1,101.7

102%

101%

751.3

798.7

106%

102%

1,408.1

1,437.1

102%

101%

Automotive Systems

737.9

811.5

110%

103%

Components & Devices

808.2

768.0

95%

102%

Digital Media & Consumer Products

951.5

858.8

90%

100%

Financial Services

372.9

353.2

95%

101%

Others

767.4

951.6

124%

100%

(1,183.4)(1,216.8)--

9,315.8

9,665.8

104%

102%

Information & Telecommunication
Systems

Power Systems

Construction Machinery
High Functional Materials & Components

Eliminations & Corporate items
Total*1: Effective from April 1, 2011, there was a change in segmentation between the Automotive Systems and the Components & Devices
segments. Consolidated segment figures for fiscal 2011 and fiscal 2010 reflect the changed segmentations.
Copyright © 2012, Hitachi, Ltd., All rights reserved. 15*2: Previous forecast announced on March 15, 2012

1-13. Operating Income (Loss) by Business Segment
Billions of yen
Fiscal 2010*1

Fiscal 2011*1

Year over year

Previous forecast
Comparison*2

Information & Telecommunication
Systems

98.6

101.7

+3.0

+1.7

Power Systems

22.0(33.9)(56.0)

0.0

Social Infrastructure & Industrial Systems

39.9

49.1

+9.2

+4.1

Electronic Systems & Equipment

37.2

49.9

+12.7

+6.9

Construction Machinery

49.1

63.1

+13.9

(0.8)

High Functional Materials & Components

84.5

77.0

(7.4)

+3.0

Automotive Systems

23.7

37.0

+13.2

+4.0

Components & Devices

49.4

39.4

(9.9)

+2.4

Digital Media & Consumer Products

14.9(10.9)(25.8)(4.9)

Financial Services

14.2

30.2

+15.9

+3.2

Others

28.9

33.2

+4.3

+1.2

Eliminations & Corporate items(18.4)(23.8)

(5.3)

(8.8)

Total

444.5

412.2

(32.2)+12.2*1: Effective from April 1, 2011, there was a change in segmentation between the Automotive Systems and the Components & Devices
segments. Consolidated segment figures for fiscal 2011 and fiscal 2010 reflect the changed segmentations.
Copyright © 2012, Hitachi, Ltd., All rights reserved. 16*2: Previous forecast announced on March 15, 2012

1-14. Main Initiatives for Creating a High Profit Structure in Fiscal 2011

Fixed Cost Cutting

Reduced indirect material costs⇒Cost reductions of approx. 35 billion yen

Reduced material costs⇒Achieved cost reductions of approx. 200 billion yen,despite an approx. 30 billion yen jump in materials costs

Material
procurement
cost cutting

Expanded global procurement, procurement from emerging
countries⇒Achieved 38% reduction
Transferred procurement oversight functions in China and Asia,
established procurement bases

Promoted centralized purchasing⇒Achieved 30% reduction

Continued business structure reforms⇒Flat-panel TV business, and within Hitachi Cable andBusiness Structure
Reforms

Hitachi Kokusai Electric, etc.

Business model reform⇒Transferred HDD business and small and medium-sized display
business
Copyright © 2012, Hitachi, Ltd., All rights reserved. 17

Outline of Consolidated Financial Results for Fiscal 2011
May 10, 2012

Contents
1. Outline of Consolidated Financial
Results for Fiscal 2011
2. Outlook for Fiscal 2012
3. Overview by Business Segment

Copyright © 2010,2012, Hitachi, Ltd., All rights reserved. 18

2-1. Outlook for Fiscal 2012
Business Environment
Japan

Private-sector capital expenditures and full-fledged demand for housing associated with therebuild and public-works spending are driving Japan’s GDP. Together with a return to normal
levels of production following a drop due to the floods in Thailand, the economy is expected tosee a moderate recovery

U.S.

The economy should maintain a moderate recovery path due to restoration of supply chainsdamaged by the Great East Japan Earthquake, a recovering manufacturing industry on theback of a weak greenback, and an improving employment rate

EuropeEconomic sluggishness is expected to be protracted due to concerns that fiscal crises in somecountries will worsen, and the implementation of government austerity programs with credit
worries still unresolved

China

The economy is expected to maintain a high growth rate due to robust demand from the interior
parts of China, which still have room for growth. This factor should outweigh a slowdown incoastal areas due to lower exports resulting from European economic slowdown and otherfactors

Emerging
Economies

Internal demand is expected to expand due to large-scale infrastructure investment in India,
demand associated with flood recovery in Thailand and other factors

Outlook for Fiscal 2012

Expect to achieve Mid-term Management Plan targets for operating income (ratio), net income attributable to

Hitachi, Ltd., D/E ratio, total stockholders’ equity ratio, etc.
Projecting higher earnings in most business segments, especially those connected with the Social Innovation Business
Reform cost structure through Hitachi Smart Transformation Project
Copyright © 2012, Hitachi, Ltd., All rights reserved. 19

2-2. Outlook for Fiscal 2012
Projections for fiscal 2012 assume an exchange rate of 75 yen to the U.S. dollar and 100 yen to the euro.
Billions of yen

Fiscal 2011

Fiscal 2012
(Forecast)Year over year

9,665.8

9,100.0(565.8)[94%]

Operating income

412.2

480.0

+67.7

Net other income (deductions)

145.4(60.0)(205.4)

Income before income taxes

557.7

420.0

(137.7)

Income taxes

144.9

125.0

(19.9)Net income

412.8

295.0

(117.8)Net income attributable
to noncontrolling interests

65.6

95.0

+29.3

Net income attributable to Hitachi, Ltd.

347.1

200.0

(147.1)

Revenues

Copyright © 2012, Hitachi, Ltd., All rights reserved. 20

2-3. Major Factors of Net income attributable to Hitachi, Ltd.

Billions of yen【Fiscal 2011】
Net otherincome :+145.4【Fiscal 2012】

Net income attributable
to noncontrolling interests :(65.6)Net income attributable
to noncontrolling interests :(95.0)

480.0

412.2
347.1
Net otherdeductions :(60.0)
Income taxes :(125.0)

Income taxes :(144.9)OperatingincomeNet income
attributable
to Hitachi, Ltd.

Operatingincome200.0

Net income
attributable
to Hitachi, Ltd.

Copyright © 2012, Hitachi, Ltd., All rights reserved. 21

2-4. Outlook for Fiscal 2012 Revenues by Business Segment
Billions of yen

Fiscal 2011*1,2

Fiscal 2012*1,2(Forecast)Year over year*1,2

1,764.2

1,760.0

100%

832.4

840.0

101%

Social Infrastructure & Industrial Systems

1,204.9

1,230.0102%

Electronic Systems & Equipment

1,101.7

1,120.0

102%

798.7

850.0

106%

1,437.1

1,450.0101%

Automotive Systems

811.5

800.0

99%

Digital media & Consumer Products

858.8

830.0

97%

Financial Services

353.2

320.0

91%

1,719.7

1,150.067%(1,216.8)(1,250.0)-

9,665.8

9,100.0

94%

Information & Telecommunication Systems

Power Systems

Construction Machinery
High Functional Materials & Components

OthersEliminations & Corporate items
Total*1:The Components & Devices Segment was abolished on April 1, 2012 due to the sale of the HDD operations and other factors.
*2: Effective from April 1, 2012, there has been a change in classifications of the Components & Devices Segment and Others Segment
following the abolishment of the Components & Devices Segment. Forecasts for fiscal 2012 show the new segment classifications, andfigures for fiscal 2011 using the new segment classifications are also shown for reference.

Copyright © 2012, Hitachi, Ltd., All rights reserved. 22

2-5. Outlook for Fiscal 2012 Operating Income (Loss) by Business Segment
Billions of yen

Fiscal 2011*1,2

Fiscal 2012*1,2(Forecast)Year over year

Information & Telecommunication Systems

101.7

120.0

+18.2

Power Systems(33.9)

22.0

+55.9

Social Infrastructure & Industrial Systems

49.1

55.0

+5.8

Electronic Systems & Equipment

49.9

52.0

+2.0

Construction Machinery

63.1

82.0

+18.8

High Functional Materials & Components

77.0

98.0

+20.9

Automotive Systems

37.0

37.0

0.0

(10.9)

0.0+10.9

Financial Services

30.2

26.0

(4.2)

Others72.7

40.0(32.7)

Eliminations & Corporate items(23.8)(52.0)(28.1)

Total

412.2

480.0

+67.7

Digital media & Consumer Products*1:The Components & Devices Segment was abolished on April 1, 2012 due to the sale of the HDD operations and other factors.
*2:Effective from April 1, 2012, there has been a change in classifications of the Components & Devices Segment and Others Segment following
the abolishment of the Components & Devices Segment. Forecasts for fiscal 2012 show the new segment classifications, and figures for fiscal
2011 using the new segment classifications are also shown for reference.
Copyright © 2012, Hitachi, Ltd., All rights reserved. 23

Outline of Consolidated Financial Results for Fiscal 2011
May 10, 2012

Contents
1. Outline of Consolidated Financial
Results for Fiscal 2011
2. Outlook for Fiscal 2012
3. Overview by Business Segment

Copyright © 2010,2012, Hitachi, Ltd., All rights reserved. 24

3-1. Information & Telecommunication Systems
Revenues

Fiscal 2011 (Full-year Results)
Billions of yen

2,000
1,652.0

1,764.2

1,760.0

1,500•Figures in brackets are comparisonswith previous year

Revenues: 1,764.2 billion yen [107%]
Higher overall revenues from increased sales for services
in Japan, as well as higher sales in storage solutions andconsulting overseas
Operating income: 101.7 billion yen [+3.0 billion yen]
Higher earnings mainly reflected improved hardware
profitability etc.

1,000
500
0

FY2010FY2011

Operating income

FY2012(Forecast)Billions of yen

150
120.0
100

98.6

101.7

Revenues: 1,760.0 billion yen [100%]
Forecasting flat revenues overall, with lower sales fromsoftware and hardware offset by some large services
projects expected in the finance sector and another strong
showing by storage solutions
Operating income: 120.0 billion yen [+18.2 billion yen]
Forecasting higher earnings due to rigorous project
management in services, and improved profitability inhardware and higher sales in storage solutions

50

0

Fiscal 2012 Outlook

FY2010FY2011FY2012(Forecast)
Copyright © 2012, Hitachi, Ltd., All rights reserved. 25

3-2. Power Systems
Fiscal 2011 (Full-Year Results)
Revenues

Billions of yen•Figures in brackets are comparisonswith previous year

Revenues: 832.4 billion yen [102%]600

Slight increase was mainly attributable to steady growth in thethermal power generation systems business in Japan, despite adecline in sales from nuclear power generation systems due tothe impact of the Great East Japan Earthquake

400

Operating loss: (33.9) billion yen [(56.0) billion yen]

200

Lower earnings primarily reflected additional expenses incurredin relation to difficulties within boiler materials and delays inthermal power generation systems in Europe

1,000
800

813.2

832.4

840.0

0

FY2010FY2011

Operating income (loss)

FY2012(Forecast)

Revenues: 840.0 billion yen [101%]
Billions of yen

40
22.0

Fiscal 2012 Outlook

22.0

20
0

Forecasting revenues on a par with fiscal 2011, with lower sales
from nuclear power generation systems, and thermal power
generation systems in Japan offset by robust growth for thermal
power generation systems, especially in emerging countries, inaddition to higher sales from the renewable energy business,
etc.

Operating income: 22.0 billion yen [+55.9 billion yen](20)
(33.9)(40)

FY2010FY2011FY2012(Forecast)

Expect to see a marked improvement due to the absence of
one-time expenses incurred in fiscal 2011, stronger project
management, and cost-cutting programs
Copyright © 2012, Hitachi, Ltd., All rights reserved. 26

3-3. Social Infrastructure & Industrial Systems
Revenues

Billions of yen

1,500
1,156.9

1,204.9

1,230.0

1,200
900

Fiscal 2011 (Full-Year Results)•Figures in brackets are comparisonswith previous year

Revenues: 1,204.9 billion yen [104%]
The increase reflected steady growth in the elevator andescalator business overseas, in addition to higher sales
from plant-related equipment and construction in Japan
Operating income: 49.1 billion yen [+9.2 billion yen]
Higher earnings increased primarily due to the higher
revenues and progress with cost reduction measures etc.

600
300
0

FY2010FY2011

Operating income

Billions of yen

60

55.0
49.1

50
40

FY2012(Forecast)

Revenues: 1,230.0 billion yen [102%]
Forecasting higher revenues on steady growth in elevatorand escalator sales, especially in China, as well as in plantrelated equipment and construction overseas

39.9

Operating income: 55.0 billion yen [+5.8 billion yen]
Forecasting higher earnings in line with expected higher
revenues from the elevator and escalator business,particularly in China, and from plant-related equipment andconstruction overseas

30
20
10
0

Fiscal 2012 Outlook

FY2010FY2011FY2012(Forecast)
Copyright © 2012, Hitachi, Ltd., All rights reserved. 27

3-4. Electronic Systems & Equipment
Revenues
1,200

1,079.3

Billions of yen

1,101.7

1,120.0800•Figures in brackets are comparisonswith previous year

Revenues: 1,101.7 billion yen [102%]
The higher segment revenues reflected mainly the
consolidation of Aloka Medical by Hitachi Medical
Corporation
Operating income: 49.9 billion yen [+12.7 billion yen]
Higher earnings mainly due to progress with businessstructural reforms at Hitachi Kokusai Electric and cost
reductions at Hitachi Koki

400

0

Fiscal 2011 (Full-Year Results)

FY2010FY2011FY2012(Forecast)Fiscal 2012 Outlook
Operating income

Billions of yen

60
49.9
40

52.0

37.2

Operating income: 52.0 billion yen [+2.0 billion yen]
Forecasting higher earnings on higher revenues

20

0

Revenues: 1,120.0 billion yen [102%]
Forecasting higher revenues on expected growth insemiconductor manufacturing equipment and industrial
materials at Hitachi High-Technologies Corporation andpower tools at Hitachi Koki

FY2010FY2011FY2012(Forecast)
Copyright © 2012, Hitachi, Ltd., All rights reserved. 28

3-5. Construction Machinery
Revenues

Billions of yen

900
750

751.3

798.7

850.0

600
450
300
150
0

FY2010FY2011

Operating income

FY2012(Forecast)Billions of yen

100
82.0
80
63.1
60
49.1
40
20
0

FY2010FY2011FY2012(Forecast)Fiscal 2011 (Full-Year Results)•Figures in brackets are comparisonswith previous year

Revenues: 798.7 billion yen [106%]
The overall increase reflected efforts to capturereconstruction-related demand in Japan, as well as sales
growth in mining machinery in Asia and Oceania, which
compensated for lower sales in China
Operating income: 63.1 billion yen [+13.9 billion yen]
Higher earnings reflected an improvement in sales prices
and progress with cost reductions, in addition to growth inservices, parts and components in mining machinery andhigher revenues

Fiscal 2012 Outlook
Revenues: 850.0 billion yen [106%]
Forecasting higher sales due to an expected recovery in
the Chinese market from around fall, in addition to
expected growth in hydraulic excavators in emerging
countries and the U.S.
Operating income: 82.0 billion yen [+18.8 billion yen]
Forecasting higher earnings on growth in sales of services,
parts and components in mining machinery and higher
revenues
Copyright © 2012, Hitachi, Ltd., All rights reserved. 29

3-6. High Functional Materials & Components
Fiscal 2011 (Full-Year Results)

Revenues
Billions of yen

1,500

1,408.1

1,437.1

1,450.0

1,000

500

0

FY2010FY2011

Operating income

FY2012(Forecast)Billions of yen

98.0

100
84.5
80

77.0

60
40
20
0

FY2010FY2011FY2012(Forecast)•Figures in brackets are comparisonswith previous year

Revenues: 1,437.1 billion yen [102%]
The higher revenues reflected strong sales by Hitachi
Metals, mainly for automotive-related products
Operating income: 77.0 billion yen [(7.4) billion yen]
Lower earnings was mainly the result of a decline inearnings at Hitachi Chemical due to the negative impacts of
the Great East Japan Earthquake and flooding in Thailand.
This was despite higher earnings at Hitachi Cable as aresult of progress on structural reforms, in addition tohigher earnings at Hitachi Metals

Fiscal 2012 Outlook
Revenues: 1,450.0 billion yen [101%]
Forecasting higher revenues due to expected strong
growth in sales, mainly from automotive-related products at
Hitachi Metals and Hitachi Chemical
Operating income: 98.0 billion yen [+20.9 billion yen]
Forecasting higher earnings due to the benefits of businessstructure reforms at Hitachi Cable, and projected higher
revenues, mainly from automotive-related products at
Hitachi Metals and Hitachi Chemical
Copyright © 2012, Hitachi, Ltd., All rights reserved. 30

3-7. Automotive Systems
Revenues

Billions of yen

1,000
800

811.5

737.9

800.0

600

Fiscal 2011 (Full-Year Results)•Figures in brackets are comparisonswith previous year

Revenues: 811.5 billion yen [110%]
The increase primarily reflected recovery in global
automobile demand, including demand in emerging
countries
Operating income: 37.0 billion yen [+13.2 billion yen]
The higher earnings mainly reflected the higher revenues
and cost reductions etc.

400
200
0

FY2010FY2011

Operating income
40

FY2012(Forecast)Billions of yen

37.0

37.0

Fiscal 2012 Outlook
Revenues: 800.0 billion yen [99%]Forecasting flat revenues, with emerging countries
expected to continue performing strongly
Operating income: 37.0 billion yen [0 billion yen]
Forecasting earnings on a par with the previous fiscal year

30
23.7
20

Note: Effective from April 1, 2011, there was a change in segmentation
between the Automotive Systems and the Components & Devices
segments.
Figures indicated in this slide reflect the changed segmentations.

100

FY2010FY2011FY2012(Forecast)

Copyright © 2012, Hitachi, Ltd., All rights reserved. 31

3-8. Components & Devices (1)Revenues

Billions of yen

1,000
808.2
800

768.0

600

Fiscal 2011 (Full-Year Results)•Figures in brackets are comparisonswith previous year

Revenues: 768.0 billion yen [95%]
Revenues declined on lower shipments in HDD businessdue to restrictions on parts procurement following the Great
East Japan Earthquake and the flooding in Thailand
Operating income: 39.4 billion yen [(9.9) billion yen]
Lower earnings mainly reflected lower sales in HDD
business

400
200
0

FY2010Operating income

FY2011■Hitachi Global Storage Technologies
Refer to the next page

Billions of yen

60
49.4
39.4

40

20

Notes:
1. Effective from April 1, 2011, there was a change in segmentation
between the Automotive Systems and the Components & Devices
segments. Figures indicated in this slide reflect the changed
segmentations.
2. The Components & Devices Segment was abolished on April 1, 2012
due to the sale of the HDD operations and other factors.

0

FY2010FY2011
Copyright © 2012, Hitachi, Ltd., All rights reserved. 32

3-8. Components & Devices (2) (Overview of Hard Disk Drive Business)

Operating
IncomeFY 2011

Total

Total

(A)

(B)

(B)/(A)

Jan. – Dec.2010

Jan. – Dec.2011-

Billions of yen

526.8

460.8

87%

Millions of dollars

6,003

5,773

96%

Billions of yen

57.2

36.8

64%

Millions of dollars

645

464

72%

Shipment Period
Revenues

FY 2010

Fiscal 2011 (Full-Year Results)
The revenue decline reflected lower product shipments due to restrictions on parts procurement
stemming following the Great East Japan Earthquake and flooding in Thailand
Operating income declined because of lower sales
Note: The Components & Devices Segment was abolished on April 1, 2012 due to the sale of the HDD operations and otherfactors.
Copyright © 2012, Hitachi, Ltd., All rights reserved. 33

3-9. Digital Media & Consumer Products
Fiscal 2011 (Full-Year Results)

Revenues
1,000

Billions of yen

951.5
858.8

830.0

800

•Figures in brackets are comparisonswith previous year

Revenues: 858.8 billion yen [90%]Lower revenues reflected the impact of falling prices on
optical disk drive-related products and flat-panel TVs
Operating loss: (10.9) billion yen [(25.8) billion yen]
Negative earnings was due to lower sales of flat-panel TVs
and optical disk drive-related products

600
400
200
0

Fiscal 2012 Outlook
FY2010FY2011

Operating income (loss)

FY2012(Forecast)Billions of yen

20
14.9
15
10
5
0

0

(5)
(10)

Revenues: 830.0 billion yen [97%]Forecasting lower revenues due to an expected sharp
decline in flat-panel TV revenues, although home
appliances and commercial packaged air conditioner sales
should remain firm
Operating income: 0.0 billion yen [+10.9 billion yen]
Projecting a marked improvement in earnings due to thebenefits of business structure reforms in flat-panel TVs andan expected improvement in home appliances andcommercial packaged air conditioner profitability(10.9)(15)
FY2010FY2011FY2012(Forecast)

Copyright © 2012, Hitachi, Ltd., All rights reserved. 34

3-10. Financial Services / Others
OthersFinancial Services
Revenues
400

372.9

Billions of yen

Revenues

Billions of yen

2,000

353.2

1,719.7

320.0
300

1,500
1,150.0

200

1,000

100

500

0

FY2010FY2011

Operating income

FY2012(Forecast)Billions of yen

0

767.4

FY2010FY201130.2

30FY2012FY2011(New(Previous(Previous
segmentation) segmentation) segmentation)

Operating income
8040(Forecast)(New segmentation)

Billions of yen

72.7

60
26.0
40

20
14.2

40.0
28.9

33.2

FY2010FY2011

20

10
0

951.6

0

FY2010FY2011FY2012(Forecast)

FY2011FY2012(New(Forecast)(Previous(Previous
segmentation) segmentation) segmentation) (New segmentation)
Note:Effective from April 1, 2012, there has been a change in classifications of the Components & Devices
Note:Segment and Others Segment following the abolishment of the Components & Devices Segment.
Note:Forecasts for fiscal 2012 show the new segment classifications, and figures for fiscal 2011 using theNote:new segment classifications are also shown for reference.
Copyright © 2012, Hitachi, Ltd., All rights reserved. 35

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 withrespect 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 for such 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 from sales;• 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 andcomponents;• 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 and other 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 and Europe, including, without limitation, direct orindirect 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.

Copyright © 2012, Hitachi, Ltd., All rights reserved. 36