[Translation]

Quarterly Report(The Second Quarter of 153rd Business Term)
From July 1, 2021 to September 30, 2021

6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo

Hitachi, Ltd.

[Cover][Document Filed]

Quarterly Report (“Shihanki Hokokusho”)[Applicable Law]

Article 24-4-7, Paragraph 1 of the Financial Instruments and Exchange Act of Japan[Filed with]

Director, Kanto Local Finance Bureau[Filing Date]

November 12, 2021

[Fiscal Year]

The Second Quarter of 153rd Business Term (from July 1, 2021 to September 30, 2021)[Company Name]

Kabushiki Kaisha Hitachi Seisakusho[Company Name in English]

Hitachi, Ltd.

[Title and Name of Representative]

Keiji Kojima, President & COO[Address of Head Office]6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo[Phone No.]

03-3258-1111[Contact Person]

Takahiro Yamada, Manager, Legal Division[Contact Address]

6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo[Phone No.]

03-3258-1111[Contact Person]

Takahiro Yamada, Manager, Legal Division[Place Where Available for Public
Inspection]

Tokyo Stock Exchange, Inc.
(2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)
Nagoya Stock Exchange, Inc.
(8-20, Sakae 3-chome, Naka-ku, Nagoya)

This is an English translation of the Quarterly Report filed with the Director of the Kanto Local Finance Bureau via Electronic
Disclosure for Investors’ NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan.
The translation of the Confirmation Letter for the original Quarterly Report is included at the end of this document.
Unless the context indicates otherwise, the term “Company” refers to Hitachi, Ltd. and the term “Hitachi” refers to theCompany and its consolidated subsidiaries.
Unless otherwise stated, in this document, where we present information in millions or hundreds of millions of yen, we havetruncated amounts of less than one million or one hundred million, as the case may be. Accordingly, the total of figures presented incolumns or otherwise may not equal the total of the individual items. We have rounded all percentages to the nearest percent, one-tenthof one percent or one-hundredth of one percent, as the case may be.
References in this document to the “Financial Instruments and Exchange Act” are to the Financial Instruments and Exchange Act
of Japan and other laws and regulations amending and/or supplementing the Financial Instruments and Exchange Act of Japan.

Contents
Part I Information on the Company ………………………………………………………………………………………………
1
I. Overview of the Company ……………………………………………………………………………………………………
1
1. Key Financial Data ………………………………………………………………………………………………………
1
2. Description of Business ……………………………………………………………………………………………………
2
II. Business Overview …………………………………………………………………………………………………………
3
1. Risk Factors ………………………………………………………………………………………………………………
3
2. Management’s Discussion and Analysis of Consolidated Financial Condition, Results of Operations and Cash Flows …
3
3. Material Agreements, etc. …………………………………………………………………………………………………
9
III. Information on the Company ……………………………………………………………………………………………… 10
1. Information on the Company’s Stock, etc. ……………………………………………………………………………… 10(1) Total number of shares, etc. …………………………………………………………………………………………… 10(2) Information on the stock acquisition rights, etc. ……………………………………………………………………… 10(3) Information on moving strike convertible bonds, etc. ………………………………………………………………… 10(4) Changes in the total number of issued shares and the amount of common stock and other ………………………… 10(5) Major shareholders …………………………………………………………………………………………………… 11(6) Information on voting rights ………………………………………………………………………………………… 12
2. Changes in Senior Management ………………………………………………………………………………………… 13
IV. Financial Information ……………………………………………………………………………………………………… 13
Part II Information on Guarantors, etc. for the Company ………………………………………………………………………… 13[Condensed Quarterly Consolidated Financial Statements] ……………………………………………………………………… F1[Confirmation Letter] ……………………………………………………………………………………………………………… A1

Part I Information on the Company
I. Overview of the Company
1. Key Financial Data
Consolidated financial data, etc.
Six months ended
September 30, 2020

(Millions of yen, unless otherwise stated)
Six months ended
Year ended
September 30, 2021
March 31, 2021

3,760,057

4,832,665[2,165,780][2,465,228]

384,254420,107844,443

Net income attributable to Hitachi, Ltd.
stockholders

250,755[27,504]

322,444[200,213]

501,613Comprehensive income attributable to Hitachi,Ltd. stockholders

285,855

366,183

838,237

Total Hitachi, Ltd. stockholders’ equity

2,915,955

3,824,891

3,525,502

Total equity

3,572,774

4,750,232

4,458,232

Total assets

10,616,015

12,879,522

11,852,853

Earnings per share attributable to Hitachi, Ltd.

259.60333.67stockholders, basic (yen)[28.47][207.17]

Earnings per share attributable to Hitachi, Ltd.
stockholders, diluted (yen)259.29333.24518.51

Total Hitachi, Ltd. stockholders’ equity ratio (%)

27.5

29.7

29.7

Net cash provided by operating activities

214,491

161,468

793,128

Net cash used in investing activities(703,884)(951,429)(458,840)

Net cash provided by financing activities

433,819646,539(184,838)

Cash and cash equivalents at end of period

759,882

880,966

1,015,886

Revenues
Income from continuing operations, before
income taxes

8,729,196

519.29(Notes) 1. Hitachi's consolidated financial statements have been prepared in conformity with the International Financial ReportingStandards (“IFRS”) as issued by the International Accounting Standards Board.
2. Revenues do not include the consumption tax, etc.
3. The figures of “Revenues,” “Net income attributable to Hitachi, Ltd. stockholders” and “Earnings per share attributable to
Hitachi, Ltd. stockholders, basic” in square bracket are those for the three months ended September 30, 2020 and 2021,
respectively.

12. Description of Business
There were no material changes in principal businesses of Hitachi during the six months ended September 30, 2021. The
Hitachi Group is comprised of the Company, 873 consolidated subsidiaries, and 290 equity-method associates and joint-ventures.
Changes in Business Unit (BU) of the Company and principal affiliated companies during the six months ended September 30,
2021 were as follows.
(As of September 30, 2021)
BU and principal affiliated companies
Main products and services
BU
Affiliated companies
IT[Consolidated subsidiaries](Change in company name) (Note 1)
Hitachi Channel Solutions Corp.
(New) (Note 2)
GlobalLogic Worldwide Holdings, Inc.
(Change in company name) (Note 3)
Hitachi Global Digital Holdings LLC
Energy(New) (Note 4)[Consolidated subsidiaries]
Power Grid BU(Change in company name) (Note 5)
Hitachi Energy Ltd
Smart Life
[Equity-method associates](Change by reorganization and Change incompany name) (Note 6)
Arcelik Hitachi Home Appliances B.V.
Arcelik Hitachi Home Appliances (Thailand)
Ltd.
Automotive Systems[Consolidated subsidiaries](Reclassification of segment) (Note 7)(Reclassification of segment) (Note 7)
Automotive Systems (Powertrain,
Hitachi Astemo, Ltd.
Chassis, Advanced Driver
Hitachi Astemo Americas, Inc.
Assistance, Motorcycle)(Notes) 1. Hitachi-Omron Terminal Solutions, Corp. changed its name to Hitachi Channel Solutions Corp. on July 1, 2021.
2. GlobalLogic Worldwide Holdings, LLC. has become a consolidated subsidiary of the Company on July 13, 2021 as Hitachi
Global Digital Holdings LLC, a consolidated subsidiary of the Company, acquired 100% of the outstanding shares of
GlobalLogic Worldwide Holdings, LLC.
3. Hitachi Global Digital Holdings Corporation changed its name to Hitachi Global Digital Holdings LLC on April 1, 2021.
4. Power Grid BU was newly established on April 1, 2021
5. Hitachi ABB Power Grids Ltd changed its name to Hitachi Energy Ltd on June 30, 2021.
6. Arcelik Hitachi Home Appliance B.V. has become an equity-method associate of the Company as the company took overHitachi Group’s home appliances business outside Japan and started its business on July 1, 2021. In this process, Hitachi
Consumer Products (Thailand), Ltd., which was a major subsidiary of the Company, has become an equity-method
associate of the Company and changed its name to Arcelik Hitachi Home Appliance (Thailand) Ltd. as Arcelik Hitachi
Home Appliance B.V. inherited the shares of Hitachi Consumer Products (Thailand), Ltd.
7. Hitachi Astemo, Ltd., Hitachi Astemo Americas, Inc. and their main products and services, Automotive Systems, werespun off from the Smart Life segment to the Automotive Systems segment newly established on April 1, 2021
8. In addition to the table above, Hitachi Capital Corporation, which was a major equity-method associate of the Company,
merged with Mitsubishi UFJ Lease & Finance Company Limited (currently Mitsubishi HC Capital Inc.) and ceased to be an
equity-method affiliate of the Company on April 1, 20212II. Business Overview
1. Risk Factors
There were no new risk factors recognized during the six months ended September 30, 2021.
There were no material changes in the risk factors stated in the Annual Securities Report for the 152nd business term
pursuant to the Financial Instruments and Exchange Act of Japan.
2. Management’s Discussion and Analysis of Consolidated Financial Condition, Results of Operations and Cash Flows(1) Analysis of Results of Operations
Results of Operations
The results of operations in the six months ended September 30, 2021 were as follows.
Revenues increased 29% to 4,832.6 billion yen, as compared with the six months ended September 30, 2020, due mainly tothe recovery of market conditions worsened by the impact of COVID-19 (the new coronavirus infection) and the impact of foreignexchange, as well as increased in revenues resulting from the acquisition of the power grid business from ABB Ltd, themanagement integration related to Hitachi Astemo, Ltd. (the management integration among Hitachi Automotive Systems, Ltd.,
Keihin Corporation, Showa Corporation and Nissin Kogyo Co., Ltd), and the acquisition of GlobalLogic Inc. (“GlobalLogic”).
Cost of sales increased 30% to 3,647.3 billion yen, as compared with the six months ended September 30, 2020, and the ratioof cost of sales to revenues came to 75%, which was the same level as for the six months ended September 30, 2020. Gross profit
increased 24% to 1,185.2 billion yen, as compared with the six months ended September 30, 2020.
Selling, general and administrative expenses (“SG&A”) increased 13% to 875.2 billion yen and the ratio of SG&A torevenues decreased 3% to 18%, as compared with the six months ended September 30, 2020, respectively.
Adjusted operating income (presented as revenues less cost of sales as well as SG&A) increased 129.2 billion yen to 310.0
billion yen, as compared with the six months ended September 30, 2020.
Other income decreased 178.0 billion yen to 105.1 billion yen, as compared with the six months ended September 30, 2020,
due mainly to the gains on business reorganization and others posted in the six months ended September 30, 2020 by selling sharesof Hitachi Chemical Company, Ltd. The decrease was partially offset by the gains on business reorganization and others posted byselling a part of shares of Arcelik Hitachi Home Appliances B.V. Other expenses decreased 48.7 billion yen to 21.1 billion yen, as
compared with the six months ended September 30, 2020, due mainly to the impairment losses posted in the six months ended
September 30, 2020 owing to the lower than expected revenues for the magnetic material business in Hitachi Metals.
Financial income (excluding interest income) increased 7.1 billion yen to 9.2 billion yen, and financial expenses (excludinginterest charges) decreased 3.7 billion yen to 1.2 billion yen, as compared with the six months ended September 30, 2020,
respectively. The main reason for these changes are posting the exchange gain as compared with the loss posted in the six months
ended September 30, 2020.
Share of profits of investments accounted for using the equity method improved 28.3 billion yen to 23.4 billion yen, as
compared with the six months ended September 30, 2020.
EBIT (earnings before interest and taxes, which is presented as income from continuing operations, before income taxes lessinterest income plus interest charges) increased 39.2 billion yen to 425.4 billion yen, as compared with the six months ended
September 30, 2020.
Interest income decreased 0.5 billion yen to 7.6 billion yen and interest charges increased 2.8 billion yen to 13.0 billion yen,
as compared with the six months ended September 30, 2020, respectively.
Income from continuing operations, before income taxes increased 35.8 billion yen to 420.1 billion yen, as compared with thesix months ended September 30, 2020.
Income taxes decreased 81.1 billion yen to 55.6 billion yen, as compared with the six months ended September 30, 2020, due
mainly to the impact of taxes associated with business reorganizations.
Net income increased 117.7 billion to 364.4 billion yen, as compared with the six months ended September 30, 2020.
Net income attributable to non-controlling interests improved 46.0 billion yen to 41.9 billion yen, as compared with the six
months ended September 30, 2020.
As a result of the foregoing, net income attributable to Hitachi, Ltd. stockholders increased 71.6 billion yen to 322.4 billion
yen, as compared with the six months ended September 30, 2020.
Operations by Segment
The following is an overview of results of operations by segment. Revenues for each segment include intersegment
transactions. Effective from April 1, 2021, the automotive systems business, which is composed of Hitachi Astemo, Ltd. and its
affiliated companies, was spun off from the Smart Life segment as the Automotive Systems segment. Accordingly, the amounts
previously reported for the six months ended September 30, 2020 have been restated in conformity with the new segments.

3

(IT)
Revenues increased 3% to 976.6 billion yen, as compared with the six months ended September 30, 2020, due mainly to thegrowth of Lumada business including increased revenues by the acquisition of GlobalLogic.
Adjusted operating income increased 4.3 billion yen to 112.3 billion yen, as compared with the six months ended September
30, 2020, due mainly to increased revenues and improved cost structure.
EBIT increased 8.9 billion yen to 106.7 billion yen, as compared with the six months ended September 30, 2020, due mainly
to increased adjusted operating income, as well as the impairment losses on property posted in the six months ended September
30, 2020.
(Energy)
Revenues increased 69% to 675.0 billion yen, as compared with the six months ended September 30, 2020, due mainly toincreased revenues by the acquisition of the power grid business from ABB Ltd. The increase was partially offset by decreased
revenues due to the workload change in Nuclear Energy business and the strategy change of wind power generation systembusiness.
Adjusted operating income improved 6.2 billion yen to loss of 0.8 billion yen, as compared with the six months ended
September 30, 2020, due mainly to the acquisition of the power grid business from ABB Ltd and cost reduction.
EBIT improved 24.3 billion yen to profit of 13.8 billion yen as compared with the six months ended September 30, 2020, due
mainly to increased adjusted operating income.
(Industry)
Revenues increased 8% to 393.0 billion yen, as compared with the six months ended September 30, 2020, due mainly tohigher sales at JR Technology Group, LLC in industry and distribution business resulting from the recovery of market conditions,
air conditioning system business in water and environment business, and industrial products business.
Adjusted operating income increased 11.5 billion yen to 25.5 billion yen, as compared with the six months ended September
30, 2020, due mainly to increased revenues, as well as improved profitability of digital solution business in industry anddistribution business.
EBIT increased 10.0 billion yen to 25.7 billion yen as compared with the six months ended September 30, 2020, due mainly
to increased adjusted operating income.
(Mobility)
Revenues increased 32% to 709.4 billion yen, as compared with the six months ended September 30, 2020, due mainly to the
expansion of business for China in the building systems business, the recovery of market conditions in the railway systems
business as well as the impact of foreign exchange.
Adjusted operating income increased 5.1 billion yen to 44.9 billion yen, as compared with the six months ended September
30, 2020, due mainly to increased revenues.
EBIT increased 26.3 billion yen to 67.6 billion yen, as compared with the six months ended September 30, 2020, due mainly
to increased adjusted operating income as well as the gains by selling a part of shares of Agility Trains East (Holdings) Limited
stock.
(Smart Life)
Revenues decreased 16% to 511.0 billion yen, as compared with the six months ended September 30, 2020, due mainly todecreased revenues by the sale of diagnostic imaging-related business and the sale of a part of the overseas home appliancebusiness as well as withdrawal in a part of industrial solution business in Hitachi High-Tech Corporation.
Adjusted operating income decreased 9.8 billion yen to 36.2 billion yen, as compared with the six months ended September
30, 2020, due mainly to decreased revenues as well as product mix difference and an increase in strategic investments.
EBIT increased ¥46.0 billion yen to 91.6 billion yen, as compared with the six months ended September 30, 2020, due mainly
to the gains on business reorganization and others posted by selling a part of shares of Arcelik Hitachi Home Appliances B.V.,
despite decreased adjusted operating income.
(Automotive Systems)
Revenues increased 134% to 755.9 billion yen, as compared with the six months ended September 30, 2020, due mainly tothe management integration related to Hitachi Astemo, Ltd. and improvement of capacity utilization rate which was deteriorated in
the six months ended September 30, 2020 by the spread of COVID-19. The increase was partially offset by reduced production byautomobile manufacturers due to semiconductor shortage and reduced component supply due to the lockdown owing to the spreadof COVID-19.
Adjusted operating income improved 41.0 billion yen to 22.3 billion yen, as compared with the six months ended September
30, 2020, due mainly to increased revenues. The increase was partially offset by reduced production by automobile manufacturers
due to semiconductor shortage and soaring raw material prices.
EBIT improved 48.5 billion yen to profit of 21.1 billion yen, as compared with the six months ended September 30, 2020,
due mainly to increased adjusted operating income.

4

(Hitachi Construction Machinery)
Revenues increased 31% to 473.6 billion yen, as compared with the six months ended September 30, 2020, due mainly to therecovery of market conditions and price adjustment in the Americas market.
Adjusted operating income increased 27.1 billion yen to 37.5 billion yen, as compared with the six months ended September
30, 2020, due mainly to increased revenues and the impact of foreign exchange, despite cost increase mainly in steel prices.
EBIT increased 37.4 billion yen to 43.3 billion yen, as compared with the six months ended September 30, 2020, due mainly
to increased adjusted operating income and share of profits of investments accounted for using the equity method.
(Hitachi Metals)
Revenues increased 34% to 456.3 billion yen, as compared with the six months ended September 30, 2020, due mainly to therecovery of market condition including an increase demand for products for automobile.
Adjusted operating income improved 27.6 billion yen to 15.2 billion yen, as compared with the six months ended September
30, 2020, due mainly to increased revenues.
EBIT improved 54.7 billion yen to 15.9 billion yen, as compared with the six months ended September 30, 2020, due mainly
to increased adjusted operating income and the impairment losses posted in the six months ended September 30, 2020 owing to thelower than expected revenues for the magnetic material business.
(Others)
Revenues increased 4% to 217.4 billion yen, as compared with the six months ended September 30, 2020. Adjusted operating
income increased 4.3 billion to 11.8 billion yen, and EBIT increased 9.2 billion yen to 19.7 billion yen, as compared with the six
months ended September 30, 2020, respectively.
Revenues by Market
Revenues in Japan increased 4% to 1,912.4 billion yen, as compared with the six months ended September 30, 2020, due
mainly to increased revenues in the Automotive Systems segment resulting from the management integration related to Hitachi
Astemo, Ltd. and the recovery of market conditions, and increased revenues in Hitachi Metals, despite decreased revenues in the
Smart Life sector owing to the impact of selling diagnostic imaging-related business and withdrawal in a part of industrial solution
business in Hitachi High-Tech Corporation.
Overseas revenues increased 52% to 2,920.1 billion yen, as compared with the six months ended September 30, 2020, due
mainly to increased revenues in the Automotive Systems segment resulting from the management integration related to Hitachi
Astemo, Ltd. and the recovery of market conditions and increased revenues in the Energy sector resulting from the acquisition of
the power grid business from ABB Ltd, despite decreased revenues in the Smart Life sector owing to the impact of selling
diagnostic imaging-related business and a part of overseas home appliance business.
As a result, the ratio of overseas revenues to total revenues increased 9% to 60%, as compared with the six months ended
September 30, 2020.
(2) Analysis of Financial Condition and Cash Flows
Liquidity and Capital Resources
During the six months ended September 30, 2021, there were no major changes in the Company’s policies of maintaining
liquidity and ensuring funds, efforts for improvement in fund management efficiency, and ideas regarding funding sources andfundraising.
Cash Flows(Cash Flows from Operating Activities)
Net income in the six months ended September 30, 2021 increased by 117.7 billion yen, as compared with the six months
ended September 30, 2020. Net cash outflow from a change in trade payables decreased by 125.1 billion yen, as compared withthe six months ended September 30, 2020. However, net cash outflow from a change in inventories increased by 142.4 billion yen,
as compared with the six months ended September 30, 2020. Net cash inflow from a change in trade receivables and contract
assets decreased by 87.5 billion yen and income tax payment increased by 38.7 billion yen, as compared with the six months ended
September 30, 2020, respectively.
As a result of the foregoing, net cash provided by operating activities was 161.4 billion yen in the six months ended
September 30, 2021, a decrease of 53.0 billion yen compared with the six months ended September 30, 2020.
(Cash Flows from Investing Activities)
Purchase of investments in securities and other financial assets (including investments in subsidiaries and investments
accounted for using the equity method) in the six months ended September 30, 2021 decreased by 84.8 billion yen, as comparedwith the six months ended September 30, 2020, due mainly to the purchase of shares of Hitachi Energy Ltd. in the six months
ended September 30, 2020, despite the purchase of shares of GlobalLogic Worldwide Holdings, Inc. in the six months ended
September 30, 2021. However, net amount of investments related to property, plant and equipment* was 169.5 billion yen in thesix months ended September 30, 2021. This net sum increased by 23.0 billion yen, as compared with the six months ended
September 30, 2020. Proceeds from sale of investments in securities and other financial assets (including investments in
subsidiaries and investments accounted for using the equity method) in the six months ended September 30, 2021 decreased by5329.5 billion yen, as compared with the six months ended September 30, 2020, due mainly to the sale of shares of Hitachi
Chemical Company, Ltd. in the six months ended September 30, 2020.
As a result of the foregoing, net cash used in investing activities was 951.4 billion yen in the six months ended September 30,
2021, an increase of 247.5 billion yen compared with the six months ended September 30, 2020.
* The sum of the purchase of property, plant and equipment and the purchase of intangible assets, less the proceeds from sale ofproperty, plant and equipment, and intangible assets.
(Cash Flows from Financing Activities)
Net cash inflow from a change in short-term debt in the six months ended September 30, 2021, decreased by 229.7 billion
yen, as compared with the six months ended September 30, 2020. Net cash outflow related to long-term debt** in the six months
ended September 30, 2021, increased by 46.5 billion yen, as compared with the six months ended September 30, 2020. However,net cash outflow related to purchase of shares of consolidated subsidiaries from non-controlling interests in the six months ended
September 30, 2021 decreased by 511.3 billion yen, as compared with the six months ended September 30, 2020, due mainly tothe purchase of shares of Hitachi High-Tech Corporation in the six months ended September 30, 2020.
As a result of the foregoing, net cash provided by financing activities was 646.5 billion yen in the six months ended
September 30, 2021, an increase of 212.7 billion yen compared with the six months ended September 30, 2020.
** The proceeds from long-term debt, less the payments on long-term debt.
As a result of the foregoing, cash and cash equivalents as of September 30, 2021, were 880.9 billion yen, a decrease of 134.9
billion yen from March 31, 2021. Free cash flows, the sum of cash flows from operating and investing activities, were an outflow
of 789.9 billion yen in the six months ended September 30, 2021, a decrease of 300.5 billion yen compared with the six months
ended September 30, 2020.
Assets, Liabilities and Equity
The following is an overview of Hitachi’s assets, liabilities and equity as of September 30, 2021.
Total assets were 12,879.5 billion yen, an increase of 1,026.6 billion yen from March 31, 2021, due mainly to increased
goodwill by the acquisition of GlobalLogic, despite decreases in trade receivables and contract assets, and cash and cash
equivalents.
Total interest-bearing debt, the sum of short-term debt and long-term debt, was 3,313.6 billion yen, an increase of 916.2
billion yen from March 31, 2021.
Total Hitachi, Ltd. stockholders’ equity increased by 299.3 billion yen from March 31, 2021, to 3,824.8 billion yen. The ratioof total Hitachi, Ltd. stockholders’ equity to total assets was 29.7%, which was the same level as of March 31, 2021.
Non-controlling interests were 925.3 billion yen, a decrease of 7.3 billion yen from March 31, 2021.
Total equity was 4,750.2 billion yen, an increase of 292.0 billion yen from March 31, 2021. The ratio of interest-bearing debt
to total equity was 0.70, as compared with 0.54 as of March 31, 2021.
(3) Management Policy
There were no material changes in Hitachi’s management policy during the six months ended September 30, 2021.
(4) Challenges Hitachi Group Faces
1) Business and Financial Challenges Hitachi Group Faces
There were no material changes in Hitachi’s business and financial challenges during the six months ended September 30,
2021.
2) Fundamental Policy on the Conduct of Persons Influencing Decision on the Company’s Financial and Business Policies
There were no material changes in Hitachi’s fundamental policy during the six months ended September 30, 2021.

6

(5) Research and Development
There were no material changes in the research and development of the Hitachi Group (the Company and consolidated
subsidiaries) stated in the Annual Securities Report for the 152nd business term pursuant to the Financial Instruments andExchange Act of Japan. The Hitachi Group’s R&D expenditures in the six months ended September 30, 2021 were 153.5 billion
yen, 3.2% of revenues. A breakdown of R&D expenditures by segment is shown below.
(Billions of yen)Six months ended
September 30, 2021

Segment
IT

25.6

Energy18.1

Industry

5.0

Mobility

14.7

Smart Life

23.7

Automotive Systems

38.0

Hitachi Construction Machinery

12.5

Hitachi Metals

6.2

Others0.8

Corporate Items

8.2
Total

153.5

(6) Property, Plant and Equipment
The major property, plants and equipment materially changed during the six months ended September 30, 2021 are as
follows.
Breakdown by Segment(As of September 30, 2021
Book value (Millions of yen)Segment

Land[Area inthousands
2of m ]

Smart Life
(Note)

16,166

Automotive Systems(Note)

52,522

Buildings
andstructures

MachineryandvehiclesTools,
furnitureandfixtures

Right-of-use
Assets60,62430,552

26,05016,514-

7,950

157,856

18,474125,353

245,008

30,401

25,181-80,163558,628

66,344

Constructionin progress

Other

Total

Number of
employees[2,333][10,357](Note) From April 1, 2021, the automotive systems business, which is composed of Hitachi Astemo, Ltd. and its affiliated companies,
was spun off from the Smart Life segment as the Automotive Systems segment. As a result, the book value of the facilities in
the Smart Life segment materially decreased.

7(7) Plans for Capital Investment, Disposals of Property, Plants and Equipment, etc.
The Hitachi Group (the Company and consolidated subsidiaries) engages in diverse operations in Japan and overseas, and has
not decided on specific plans to newly install or expand each of facilities as of the end of the consolidated fiscal year and eachquarter of the consolidated fiscal year. For this reason, it discloses amounts of capital investment by segment.
The amount of capital investment for the fiscal year ending March 31, 2022 is updated as follows (new installation andexpansions, based on the amount recorded as tangible fixed assets and the investment property). The amount of capital investment
which is shown in the Initial Plan is the amount planned as of the filing date of the Annual Securities Report for the 152ndbusiness term.
The amount of capital investment
for the fiscal year ending March 31, 2022
Segment(Billions of yen)
Initial Plan
Updated Plan
IT
55.0
63.0
Energy40.0
40.0
Industry
19.0
19.0
Mobility
26.0
26.0
Smart Life
38.0
40.0
Automotive Systems
105.0
94.0
Hitachi Construction Machinery
60.0
55.0
Hitachi Metals
40.0
40.0
Others26.0
23.0
Corporate Items & Elimination
24.0
24.0
Total
433.0
424.0
(Notes) 1. The figures in the above table include the amount of the right-of-use assets and the investment property, each ofwhich is recorded as property, plant and equipment and other non-current assets, respectively.
2. These planned investments are expected to be mostly financed with the Hitachi Group’s own capital.
3. There are no plans to dispose or sell principal facilities, with the exception of disposing and selling facilities due toroutine upgrading.

8(8) Forward-Looking Statements
Certain statements found in “2. Management’s Discussion and Analysis of Consolidated Financial Conditions, Operating
Results and Cash Flows” and other descriptions in this report 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 historicalor 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 materiallyfrom 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 report.
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:• exacerbation of social and economic impacts of the spread of COVID-19;• economic conditions, including consumer spending and plant and equipment investment in Hitachi’s major markets, as wellas levels of demand in the major industrial sectors Hitachi serves;• 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;• 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;• fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel,aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and components;• estimates, fluctuations in cost and cancellation of long-term projects for which Hitachi uses the percentage-of-completion
method to recognize revenue from sales;• increased commoditization of and intensifying price competition for products;• uncertainty as to Hitachi’s ability to attract and retain skilled personnel;• 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;• fluctuations in demand of products, etc. and industry capacity;• uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in demand of
products, etc., exchange rates and/or price of raw materials or shortages of materials, parts and components;• credit conditions of Hitachi’s customers and suppliers;• 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 acquisitions of other companies, joint ventures and strategic alliances and the possibility of
incurring related expenses;• uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting
underperforming businesses and to strengthen competitiveness;• 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 or indirect
restrictions by other nations on imports and differences in commercial and business customs including, without limitation,
contract terms and conditions and labor relations;the potential for significant losses on Hitachi’s investments in equity-method associates and joint ventures;
uncertainty as to the success of cost structure overhaul;
the possibility of disruption of Hitachi’s operations by natural disasters such as earthquakes and tsunamis, the spread of
infectious diseases, and geopolitical and social instability such as terrorism and conflict;uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its
subsidiaries or its equity-method associates and joint ventures have become or may become parties;
the possibility of incurring expenses resulting from any defects in products or services of Hitachi;
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 Hitachi’s access to, or ability to protect, certain intellectual property; anduncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its employee benefit-related costs.

The factors listed above are not all-inclusive and are in addition to other factors contained elsewhere in this report and inother materials published by Hitachi.
3. Material Agreements, etc.
No material agreements were entered into during the six months ended September 30, 2021.

9III. Information on the Company
1. Information on the Company’s Stock, etc.
(1) Total number of shares, etc.
1) Total number of shares
Class

Total number of shares authorized to
be issued (shares)

Common stock

2,000,000,000

Total

2,000,000,0002) Issued shares

Class

Number of sharesissued as of the end of
third quarter (shares)(September 30, 2021)

Number of sharesissued as of thefiling date (shares)(Note)(November 12, 2021)

968,234,877

968,234,877

Commonstock

Stock exchange on which
the Company is listed

Description

The number of shares per
one unit of shares is 100

Tokyo, Nagoya

shares.

Total

968,234,877

968,234,877--(Note) The "Number of shares issued as of the filing date" does not include shares issued upon exercise of stock acquisition rights from
November 1, 2021 to the filing date.
(2) Information on the stock acquisition rights, etc.
1) Details of stock option plans
Not applicable.
2) Details of other stock acquisition rights, etc.
Not applicable.
(3) Information on moving strike convertible bonds, etc.
Not applicable.
(4) Changes in the total number of issued shares and the amount of common stock and other

Date

From July 1, 2021
to September 30, 2021

Change in
the total
number ofissued shares(shares)－

Balance of thetotal number ofissued shares(shares)

Change incommonstock(Millionsof yen)Balance ofcommonstock(Millionsof yen)Change incapitalreserve(Millionsof yen)Balance ofcapitalreserve(Millionsof yen)968,234,877－

461,731－

179,69710

(5) Major shareholders(As of September 30, 2021)

Name

Address

The Master Trust Bank of Japan, Ltd.

11-3, Hamamatsucho 2-chome, Minato-ku,(Trust Account)Tokyo

Custody Bank of Japan, Ltd.
(Trust Account)

8-12, Harumi 1-chome, Chuo-ku, Tokyo

Share
Ownership(shares)

Ownership
percentage to thetotal number ofissued shares(excluding treasury
stock) (%)

146,527,000

15.15

57,245,000

5.92State Street Bank and Trust Company

P.O. Box 351, Boston, Massachusetts 02101

505223(Standing proxy: Mizuho Bank, Ltd.)U.S.A.
(15-1, Konan 2-chome, Minato-ku, Tokyo)

23,192,903

2.40

Nippon Life Insurance Company

6-6, Marunouchi 1-chome, Chiyoda- ku, Tokyo

20,000,099

2.07

C/O Citibank, New York 111
Wall Street, New York, NY, U.S.A.
(15-1, Konan 2-chome, Minato-ku, Tokyo)

19,751,946

2.04

6-6, Marunouchi 1-chome, Chiyoda- ku, Tokyo

19,655,187

2.03

19,051,529

1.97

One Lincoln Street, Boston MA USA 02111(11-1, Nihombashi 3-chome, Chuo-ku, Tokyo)

18,729,570

1.94State Street Bank and Trust Company
505001(Standing proxy: Mizuho Bank, Ltd.)

P.O. Box 351, Boston, Massachusetts 02101
U.S.A.
(15-1, Konan 2-chome, Minato-ku, Tokyo)

16,995,518

1.76

State Street Bank West Client Treaty 505234

1776 Heritage Drive, North Quincy, MA
02171, U.S.A.

16,504,587

1.71(Standing Proxy: Mizuho Bank, Ltd.)(15-1, Konan 2-chome, Minato-ku, Tokyo)
357,653,339

36.98

NATS CUMCO(Standing proxy: Mizuho Bank, Ltd.)
Hitachi Employees’ Shareholding
Association
JP Morgan Chase Bank 385632(Standing proxy: Mizuho Bank, Ltd.)

25 Bank Street, Canary Wharf,
London, E14 5JP, United Kingdom(15-1, Konan 2-chome, Minato-ku, Tokyo)

SSBTC CLIENT OMNIBUS
ACCOUNT(Standing proxy: The Hongkong andShanghai Banking Corporation
Limited)

Total-(Notes) 1. NATS CUMCO is the nominee name of the depositary bank, Citibank, N.A., for the aggregate of the Company’s American
Depositary Receipts (ADRs) holders.
2. Some reports on substantial shareholdings regarding the Company under the Financial Instruments and Exchange Act areavailable for public inspection. However, the information in the reports is not described in the above table since theCompany does not confirm the actual status of shareholdings as of September 30, 2021. The major contents of the reports
are as follows. On October 1, 2018, the Company completed the share consolidation of every five shares into one share forits common stock. The reports whose date on which the duty to file report is prior to the effective date of the shareconsolidation show the number of shares before the share consolidation.
Holders

BlackRock Japan Co. Ltd and seven other persons

Date on which the duty to file report

April 14, 2017

Number of shares

304,755,969 shares

Ownership percentage to the total number
of issued shares

6.31%

11

Sumitomo Mitsui Trust Asset Management Co., Ltd. and one other

Holders

personDate on which the duty to file reportFebruary 15, 2019

Number of shares

48,728,827 shares

Ownership percentage to the total number
of issued shares

5.04%(6) Information on voting rights
1) Issued shares(As of September 30, 2021)
Classification

Number of shares (shares)

Shares without voting right
Shares with restricted voting right (treasury
stock, etc.)
Shares with restricted voting right (others)

Number of voting
rightsDescription

－

－

－

－

－

－

－

－

－

－

－

Shares with full voting right (treasury stock, etc.)

Common stock

1,016,800

Shares with full voting right (others)

Common stock

964,881,600

Shares less than one unit

Common stock

2,336,477－－

968,234,877－－

Number of issued shares
Total number of voting rights－

9,648,816

9,648,816－－(Note) The “Shares with full voting right (others)” column includes 5,300 shares registered in the name of Japan Securities Depository
Center, Incorporated (account for managing stocks whose shareholders have not transferred titles) and 53 voting rights for thoseshares.

122) Treasury stock, etc.
(As of September 30, 2021)

Name ofshareholder

Address

Hitachi, Ltd.

6-6, Marunouchi 1-chome,
Chiyoda-ku, Tokyo

Aoyama Special Steel

9-11, Shinkawa 2-chome, Chuo-

Co., Ltd.

ku, Tokyo

SAITA KOUGYOU
CO., LTD.

Number ofshares held
under own name(shares)Number ofshares held
under thenames ofothers(shares)

Total shares
held (shares)

Ownership
percentage tothe total
number ofissued shares(%)

983,600－

983,600

0.10

2,100

－

2,100

0.00

5-3, Takinogawa 5-chome, Kitaku, Tokyo

17,600－17,6000.00

Nitto Jidosha
Kiki K.K.

3268, Nagaoka, Ibarakimachi,
Higashiibaraki-gun, Ibaraki

10,500－10,5000.00

Mizuho Co., Inc.

4-1, Koishikawa 5-chome,
Bunkyo-ku, Tokyo

3,000

－

3,000

0.00

1,016,800－

1,016,800

0.11

Total

－

2. Changes in Senior Management
There were no changes in senior managements from the filing date of the Annual Securities Report for the 152nd businessterm pursuant to the Financial Instruments and Exchange of Act of Japan to September 30, 2021.

IV. Financial Information
Refer to the condensed quarterly consolidated financial statements incorporated in this Quarterly Report.

Part II Information on Guarantors, etc. for the Company
Not applicable.

13

Condensed Quarterly Consolidated Financial Statements
Condensed Quarterly Consolidated Statement of Financial Position
Millions of yen
Note
AssetsCurrent assets
Cash and cash equivalents
Trade receivables and contract assets
Inventories
Investments in securities and other financial assets
Other current assets
Total current assets

67
5

Non-current assets
Investments accounted for using the equity method
Investments in securities and other financial assets
Property, plant and equipment
Goodwill
Other intangible assets
Other non-current assets
Total non-current assets
Total assets

5
5,7
5
5

Liabilities
Current liabilities
Short-term debt
Current portion of long-term debt
Other financial liabilities
Trade payables
Accrued expenses
Contract liabilities
Other current liabilities
Total current liabilities

7
7

5

Non-current liabilities
Long-term debt
Retirement and severance benefits
Other non-current liabilities
Total non-current liabilities
Total liabilities

77

EquityHitachi, Ltd. stockholders’ equity
Common stock
Capital surplus
Retained earnings
Accumulated other comprehensive income
Treasury stock, at cost
Total Hitachi, Ltd. stockholders’ equity

5,7
8

Non-controlling interests

5,7

September 30, 2021

March 31, 2021

880,966
2,562,110
1,855,257
338,295
287,188

1,015,886
2,734,476
1,653,395
328,153
211,390

5,923,816

5,943,300

386,782598,768
2,390,796
2,012,092
1,192,751
374,517472,105
534,324
2,408,887
1,161,210
964,830
368,197

6,955,706

5,909,553

12,879,522

11,852,853

1,433,523
242,854
232,307
1,496,195
657,497
931,767
404,026

416,635
274,392
288,973
1,515,954
698,553
933,844468,579

5,398,169

4,596,930

1,637,277
428,788
665,056

1,706,329
433,954
657,408

2,731,121

2,797,691

8,129,290

7,394,621

461,731
71,7652,984,796
309,500(2,901)

460,790
84,0402,710,604
273,561(3,493)3,824,891

3,525,502

925,341

932,730

Total equity

4,750,232

4,458,232

Total liabilities and equity

12,879,522

11,852,853

See accompanying notes to condensed quarterly consolidated financial statements.

F-1

Condensed Quarterly Consolidated Statement of Profit or Loss
Six months ended September 30, 2021 and 2020
Revenues
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Financial income
Financial expenses
Share of profits (losses) of investments accounted for using the equity
methodEBIT (Earnings before interest and taxes)
Interest income
Interest charges
Income from continuing operations, before income taxes
Income taxes
Income from continuing operations
Income (loss) from discontinued operations
Net income
Net income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests
Earnings per share from continuing operations,
attributable to Hitachi, Ltd. stockholders
Basic
DilutedEarnings per share attributable to Hitachi, Ltd. stockholders
Basic
DilutedMillions of yen
Note
9

5,10
5,10
11
11

12

2021
4,832,665(3,647,380)
1,185,285(875,230)
105,159(21,184)
9,282(1,255)2020
3,760,057(2,801,409)
958,648(777,860)
283,232(69,925)
2,091(4,992)

23,404(4,988)425,461
7,665(13,019)
420,107(55,693)364,4140364,414386,206
8,203(10,155)384,254(136,855)
247,399(686)
246,713322,444
41,970250,755(4,042)333.67333.24Yen
260.31260.00333.67333.24259.60259.2913

13

Condensed Quarterly Consolidated Statement of Comprehensive Income
Six months ended September 30, 2021 and 2020
Note

Millions of yen

Net income

2021
364,4142020
246,713

Other comprehensive income (OCI)
Items not to be reclassified into net income
Net changes in financial assets measured at fair value through OCI
Remeasurements of defined benefit plans
Share of OCI of investments accounted for using the equity method
Total items not to be reclassified into net income(10,276)(232)(10,508)

24,242528
24,770Items that can be reclassified into net income
Foreign currency translation adjustments
Net changes in cash flow hedges
Share of OCI of investments accounted for using the equity method
Total items that can be reclassified into net income

40,4091,879
15,98558,273

7,343
3,131
7,641
18,11547,765412,179

42,885289,598

366,183
45,996285,855
3,743

Other comprehensive income (OCI)
Comprehensive income
Comprehensive income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests

See accompanying notes to condensed quarterly consolidated financial statements.

F-2

Condensed Quarterly Consolidated Statement of Profit or Loss
Three months ended September 30, 2021 and 2020

Millions of yen
Note

Revenues
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Financial income
Financial expenses
Share of profits (losses) of investments accounted for using the equity
methodEBIT (Earnings before interest and taxes)
Interest income
Interest charges
Income from continuing operations, before income taxes
Income taxes
Income from continuing operations
Income (loss) from discontinued operations
Net income
Net income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests
Earnings per share from continuing operations,
attributable to Hitachi, Ltd. stockholders
Basic
DilutedEarnings per share attributable to Hitachi, Ltd. stockholders
Basic
Diluted2021
2,465,228(1,856,710)
608,518(428,946)
69,882(12,223)
8,560
(524)

2020
2,165,780(1,621,981)
543,799(421,381)
1,093(56,814)115(4,499)11,524(16,525)

256,791
3,026(6,565)
253,252(25,787)
227,4650227,465

45,7884,547(5,790)44,545(23,974)
20,571(349)
20,222200,213
27,25227,504(7,282)207.17206.91

Yen
28.83
28.80

207.17206.91

28.47
28.44

13

13

Condensed Quarterly Consolidated Statement of Comprehensive Income
Three months ended September 30, 2021 and 2020
Note

Millions of yen
2021
227,465

2020
20,222Other comprehensive income (OCI)
Items not to be reclassified into net income
Net changes in financial assets measured at fair value through OCI
Remeasurements of defined benefit plans
Share of OCI of investments accounted for using the equity method
Total items not to be reclassified into net income

5,072
16
5,088

6,780
489
7,269

Items that can be reclassified into net income
Foreign currency translation adjustments
Net changes in cash flow hedges
Share of OCI of investments accounted for using the equity method
Total items that can be reclassified into net income

33,947(4,835)
5,289
34,401(3,672)
1,958
12,503
10,78939,489266,954

18,05838,280239,161
27,793

43,564(5,284)

Net income

Other comprehensive income (OCI)
Comprehensive income
Comprehensive income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests

See accompanying notes to condensed quarterly consolidated financial statements.

F-3

Condensed Quarterly Consolidated Statement of Changes in Equity
Six months ended September 30, 2021

Millions of yen
2021

Commonstock

Capitalsurplus(note 7)Retainedearnings(note 8)

Accumulated
othercomprehensive
income460,790

84,0402,710,604

273,561

Reclassified into retained earnings

-

-

4,923

Net income--

Other comprehensive income--

Dividends to Hitachi, Ltd. stockholders-

Dividends to non-controlling interests
Acquisition of treasury stock

Total
Hitachi, Ltd.
stockholders’equityNoncontrollinginterests(note 7)

Total equity(3,493)

3,525,502

932,730

4,458,232(4,923)

-

-

-

-

322,444--

322,444

41,970364,414-43,739-43,7394,026

47,765-(53,175)--(53,175)-(53,175)

-

-

-

-

-

-

(32,423)(32,423)

-

-

-

-

(146)

(146)

-

(146)

Sales of treasury stock

-

(296)

-

-

738

442

-

442

Issuance of new shares

941

941

-

-

-

1,882

-

1,882

-

(12,920)-(2,877)-(15,797)(20,962)(36,759)

Total changes in equity

941(12,275)

274,192

35,939592

299,389(7,389)292,000

Balance at end of period

461,731

71,7652,984,796

309,500(2,901)

3,824,891

925,341

4,750,232

Balance at beginning of period

Treasurystock,
at costChanges in equity

Changes in non-controlling interests

Six months ended September 30, 2020

Millions of yen
2020
Total
Hitachi, Ltd.
stockholders’equityNoncontrollinginterests(notes 5
and 7)

Total equity

3,159,986

1,106,753

4,266,739

Commonstock

Capitalsurplus(notes 5
and 7)

Retainedearnings(note 8)

Accumulated
othercomprehensive
income459,862

464,795

2,296,208(57,070)(3,809)Reclassified into retained earnings

-

-

7,653

(7,653)

-

-

-

-

Net income (loss)--

250,755--

250,755(4,042)

246,713

Other comprehensive income

-

-

-

35,100-35,1007,785

42,885

Dividends to Hitachi, Ltd. stockholders--(48,311)--(48,311)-(48,311)

Dividends to non-controlling interests

-

-

-

-

-

-

(19,300)(19,300)

Acquisition of treasury stock

-

-

-

-

(51)

(51)

-

(51)

Sales of treasury stock

-

107

-

-

471

578

-

578

Issuance of new shares

928

928

-

-

-

1,856

-

1,856
(918,335)

Balance at beginning of period

Treasurystock,
at costChanges in equity-(465,830)(12,704)(5,424)-(483,958)(434,377)

Total changes in equity

Changes in non-controlling interests

928(464,795)

197,393

22,023420(244,031)(449,934)(693,965)

Balance at end of period

460,790-

2,493,601(35,047)(3,389)2,915,955

656,819

3,572,774

See accompanying notes to condensed quarterly consolidated financial statements.

F-4

Condensed Quarterly Consolidated Statement of Cash FlowsSix months ended September 30, 2021 and 2020

Millions of yen
Note

2021

2020

364,414

246,713

263,048
2,072
55,693(23,404)
892(97,540)(6,864)
173,636(232,911)(27,268)(43,136)(14,064)(130,613)
283,955
8,487
7,099(12,546)(125,527)
161,468

225,857
41,605
136,855
4,988
445(282,424)(27)
261,231(90,468)(152,436)(18,022)(7,940)(73,885)
292,492
6,762
12,308(10,308)(86,763)
214,491(138,828)(66,258)
35,523(113,636)(50,078)
17,214(921,457)(1,006,259)

106,152
33,439(951,429)

435,737
13,138(703,884)

Cash flows from financing activities:
Change in short-term debt, net
Proceeds from long-term debt
Payments on long-term debt
Proceeds from payments from non-controlling interests
Dividends paid to Hitachi, Ltd. stockholders
Dividends paid to non-controlling interests
Acquisition of common stock for treasury
Proceeds from sales of treasury stock
Purchase of shares of consolidated subsidiaries from non-controlling interests
Other
Net cash provided by (used in) financing activities

895,309
26,699(167,850)(53,127)(33,165)(146)
442(21,607)(16)
646,539

1,125,074
16,026(110,664)
2,593(48,223)(18,540)(51)
578(532,955)(19)
433,819

Effect of exchange rate changes on cash and cash equivalents
Change in cash and cash equivalents

8,502(134,920)

3,125(52,449)

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

1,015,886
880,966

812,331759,882

Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization
Impairment losses
Income taxes
Share of (profits) losses of investments accounted for using the equity method
Financial income and expenses
Net (gain) loss on business reorganization and others(Gain) loss on sale of property, plant and equipment
Change in trade receivables and contract assets
Change in inventories
Change in trade payables
Change in accrued expenses
Change in retirement and severance benefits
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of property, plant and equipment, and intangible assets
Purchase of investments in securities and other financial assets(including investments in subsidiaries and investments accounted for using the equity method)
Proceeds from sale of investments in securities and other financial assets(including investments in subsidiaries and investments accounted for using the equity method)Other
Net cash provided by (used in) investing activities

See accompanying notes to condensed quarterly consolidated financial statements.

F-55Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
(1) Nature of Operations
Hitachi, Ltd. (the Company) is a corporation domiciled in Japan, whose shares are listed on the Tokyo Stock Exchange. The
condensed quarterly consolidated financial statements of the Company as of and for the six months ended September 30, 2021
comprise the Company, its subsidiaries and the Company’s interests in associates and joint ventures. The Company’s and its
subsidiaries’ businesses are global and diverse, and include manufacturing and services in nine segments consisting of IT, Energy,
Industry, Mobility, Smart Life, Automotive Systems, Hitachi Construction Machinery, Hitachi Metals and Others.
(2) Basis of Presentation
As the Company meets the requirements of a “Specified Company applying Designated International Financial ReportingStandards” pursuant to Article 1-2 of the Ordinance on Terminology, Forms and Preparation Methods of Quarterly Consolidated
Financial Statements (Cabinet Office Ordinance No.64 of 2007), the condensed quarterly consolidated financial statements of theCompany have been prepared in accordance with International Accounting Standards (IAS) 34 “Interim Financial Reporting,” aspermitted by the provision of Article 93 of the Ordinance. They do not include all the information and disclosures required for acomplete set of financial statements prepared in accordance with International Financial Reporting Standards (IFRS), and should beread in conjunction with the financial statements and notes included in the Company’s annual consolidated financial statements forthe year ended March 31, 2021.
Management of the Company has made a number of judgments, estimates and assumptions relating to the application of accounting
policies, reporting of revenues and expenses and assets and liabilities in the preparation of these condensed quarterly consolidated
financial statements. Actual results could differ from those estimates.
Estimates and assumptions are continually evaluated. The effect of a change in accounting estimates, if any, is recognized in thereporting period in which the change was made and in future periods.
Judgments, estimates and assumptions that could have a material effect on these condensed quarterly consolidated financial
statements are basically the same as those disclosed in the Company’s annual consolidated financial statements for the year ended
March 31, 2021.

F-6

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
(3) Significant Accounting Policies
Significant accounting policies adopted in preparation of the condensed quarterly consolidated financial statements are consistent
with those used in the preparation of the Company’s annual consolidated financial statements for the year ended March 31, 2021.
Income taxes for the six months ended September 30, 2021 are computed using the estimated annual effective tax rate.

F-7

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
(4) Segment Information
The operating segments of the Company are the components for which separate financial information is available and which isevaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.
The Company discloses its business in nine reportable segments, corresponding to categories of activities classified primarily by thesimilarities for the nature of markets, products and services, and economic characteristics. Several operating segments areaggregated into Energy, Industry, Mobility and Smart Life for financial reporting purposes so that users of the financial statements
better understand the Company’s financial position and business performance. The Company aggregates operating segments basedon the similarities of economic characteristics mainly using gross profit margin ratios of operating segments. The primary products
and services included in each segment are as follows:
IT:
Digital solutions (Consulting, Software, Cloud services, System integration, Control systems), IT products (Storage, Servers) andATMs
Energy:Energy solutions (Nuclear, Renewable energy, Thermal, Power grid)Industry:
Industry & distribution solutions, Water & environment solutions and Industrial machinery
Mobility:
Building systems (Elevators, Escalators) and Railway systems
Smart Life:
Smart life & ecofriendly systems (Home appliances, Air conditioners), Measurement and analytical systems (Medical and Bio,
Semiconductor, Industry)
Automotive Systems:
Powertrain, Chassis, Advanced driver assistance, Motorcycle
Hitachi Construction Machinery:Hydraulic excavators, Wheel loaders, Mining machinery, Maintenance and services, Construction solutions and Mine management
systems
Hitachi Metals:
Specialty steel products, Functional components and equipment, Magnetic materials and power electronics materials, and Wires,
cables and related products
Others:
Optical disk drives, Property management and others
In January 2021, Hitachi Automotive Systems, Ltd., a consolidated subsidiary of the Company, integrated management with Keihin
Corporation, Showa Corporation, and Nissin Kogyo Co., Ltd and established Hitachi Astemo, Ltd. Subsequently, on April 1, 2021,
in addition to the current five sectors which are the areas of focus of the Social Innovation Business, Hitachi Astemo, Ltd. was spunoff from the Smart Life segment and positioned as a business alongside the five sectors. Also, this change will facilitate swift
decision-making to establish a structure that will achieve smooth integration and growth strategies, create synergies and further
accelerate the growth of the business. As a result, effective from April 1, 2021, the Automotive systems segment is identified as aseparate reportable segment. Figures for the six months ended September 30, 2020 have been restated on the basis of thereclassification.

F-8

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
The following tables show business segment information for the six months ended September 30, 2021 and 2020.
Revenues from External Customers
Millions of yen
2021
IT
EnergyIndustry
Mobility
Smart Life
Automotive Systems
Hitachi Construction Machinery
Hitachi Metals
Others2020
900,426
651,013319,485
706,569
478,822753,102472,623
441,999
103,743876,360
376,751
290,063534,885
562,880
321,058
360,824
329,064
101,858

Subtotal
Corporate items

4,827,782
4,883

3,753,743
6,314

Total

4,832,665

3,760,057

Revenues from Intersegment Transactions
Millions of yen
2021

2020

IT
EnergyIndustry
Mobility
Smart Life
Automotive Systems
Hitachi Construction Machinery
Hitachi Metals
Others

76,21024,03373,5682,929
32,2252,854
1,069
14,353
113,731

71,13422,07872,4373,839
44,565
2,354
78
11,767
106,816

Subtotal
Corporate items and Eliminations

340,972(340,972)

335,068(335,068)

-

-

Total

Total Revenues
Millions of yen
2021

2020

IT
EnergyIndustry
Mobility
Smart Life
Automotive Systems
Hitachi Construction Machinery
Hitachi Metals
Others976,636
675,046
393,053
709,498
511,047755,956473,692
456,352
217,474

947,494
398,829
362,500
538,724
607,445
323,412360,902
340,831208,674

Subtotal
Corporate items and Eliminations

5,168,754(336,089)

4,088,811(328,754)

Total

4,832,665

3,760,057

F-9

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
Segment Profit (Loss)
Millions of yen
2021

2020

IT
EnergyIndustry
Mobility
Smart Life
Automotive Systems
Hitachi Construction Machinery
Hitachi Metals
Others106,793
13,82825,76567,69891,644
21,19843,394
15,991
19,76997,820(10,563)
15,70541,38545,634(27,376)
5,990(38,799)
10,494

Subtotal
Corporate items and Eliminations

406,080
19,381

140,290245,916

Total
Interest income
Interest charges

425,461
7,665(13,019)386,206
8,203(10,155)

Income from continuing operations, before income taxes

420,107384,254

Segment profit (loss) is measured by EBIT.
Intersegment transactions are generally recorded at the same prices used in arm’s length transactions. Corporate items include corporate
expenses not allocated to individual business segments, such as expenditures for advanced R&D, a part of net gain (loss) on businessreorganization and share of profits (losses) of investments accounted for using the equity method, and others.

F-10Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
(5) Business Acquisitions and Divestitures
The following are the main Business Acquisitions and Divestitures for the six months ended September 30, 2021, including theperiod up to the approval date of the condensed quarterly consolidated financial statements.
(a) Acquisition of Thales’ ground transportation systems business
On August 3, 2021, Hitachi Rail Ltd.(Hitachi Rail) , a consolidated subsidiary of the Company in the Mobility segment, signed
an agreement with Thales S.A.(Thales) to acquire the ground transportation systems business in order to expand the rail
signalling systems business globally. Based on the agreement, Hitachi Rail will acquire Thales’ ground transportation systems
business which will be carved out from Thales. The transaction is subject to the usual conditions including regulatory andantitrust clearances and is expected to be completed by the fiscal year ending March 31, 2023. Hitachi Rail agreed on an
enterprise value of 1,660 million euro (approximately 215.0 billion yen) and the final purchase price will be determined after
certain adjustments. The effects of this transaction on the Company’s consolidated financial statements are currently being
evaluated.
(b) Sale of all shares of Hitachi Metals, Ltd. (Hitachi Metals)
On April 28, 2021, the Company entered into an agreement regarding the following four points for the common stocks of Hitachi
Metals (Hitachi Metals Shares), a consolidated subsidiary of the Company in the Hitachi Metals segment, with K. K. BCJ-52(Tender Offeror), a wholly owned company of G.K. BCJ-51, the outstanding shares of which are indirectly owned by investment
funds which Bain Capital Private Equity, LP and its group provide with investment advice.
(i)Tender Offeror will launch a tender offer (Tender Offer) for Hitachi Metals Shares, when conditions for the commencement of
Tender Offer are satisfied, and the Company will not apply for Tender Offer with regard to all of the Hitachi Metals Shares
held by the Company (Shares to Be Sold by the Company).
(ii)In the event Tender Offer is enacted and Tender Offeror is unable to acquire all of the Hitachi Metals Shares (excluding
treasury stock held by Hitachi Metals and Shares to Be Sold by the Company) in Tender Offer, Tender Offeror and theCompany will request convening of a general meeting of shareholders on the matter of items required for implementation ofshare consolidation (Share Consolidation) on Hitachi Metals and exercise approval right for the proposal.
(iii)As promptly as practically possible after Tender Offeror and the Company become holders of all shares of Hitachi Metals(excluding treasury stock held by Hitachi Metals) as a result of Share Consolidation, capital reduction and other measures(Capital Reduction) will be performed for Hitachi Metals in order to secure distributable amount required for acquisition oftreasury stock by Hitachi Metals (Share Repurchase).
(iv)Immediately after Capital Reduction takes effect, Shares to Be Sold by the Company will be transferred to Hitachi Metals as aresult of Share Repurchase.
The consideration is expected to be approximately 382.0 billion yen.
Assuming the transaction is settled, it is expected that the Company will transfer Shares to Be Sold by the Company. As a result,
the Company’s ownership ratio of Hitachi Metals Shares will decrease from 53.4% to 0%, and Hitachi Metals will bedeconsolidated. An expected gain on the sale of Hitachi Metals Shares in the amount of approximately 114.0 billion yen will berecognized in Other income in the consolidated statement of profit or loss. Furthermore, non-controlling interest in Hitachi
Metals will decrease approximately 230.0 billion yen in the consolidated statement of changes in equity as a result of its
deconsolidation.

F-11

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021(c) Acquisition of GlobalLogic Inc.
On March 31, 2021, the Company decided to acquire GlobalLogic Inc. (GlobalLogic), a leading U.S.-headquartered digitalengineering service company, in order to strengthen the digital portfolio of “Lumada” and the definitive agreement was signed
among Hitachi Global Digital Holdings LLC (HGDH) which is a subsidiary located in the U.S., MergeCo H Global Inc. (SPC)
which was established by HGDH for the acquisition and GlobalLogic Worldwide Holdings, Inc. (GlobalLogic Worldwide
Holdings) which is the parent company of GlobalLogic.
On July 13, 2021, HGDH acquired 100% of the outstanding shares of GlobalLogic Worldwide Holdings and GlobalLogic
Worldwide Holdings and GlobalLogic have become wholly owned subsidiaries of the Company, as a result of the transaction,
including the merger of SPC with and into GlobalLogic Worldwide Holdings, which is the surviving company.
The following table summarizes the fair value of the consideration paid for GlobalLogic and the provisional amounts of theassets acquired, liabilities assumed and goodwill recognized as of the acquisition date.
Millions of yen
11,39130,266
2,692
4,324

Cash and cash equivalents
Trade receivables and contract assets
Other current assets
Non-current assets (excluding intangible assets)
Intangible assets
Goodwill (not deductible for tax purposes)
Other intangible assets
Total

821,128
231,130
1,100,931

Current liabilities
Non-current liabilities
Total

134,272
44,409178,681

Cash paid for the acquisition

922,250

The goodwill mainly comprises excess earning power and expected synergies arising from the acquisition.
The Company is currently evaluating the fair values to be assigned to assets and liabilities of GlobalLogic at the acquisition date
and therefore the above amounts are subject to change.
Acquisition related costs included in Other expenses in the condensed quarterly consolidated statement of profit or loss for thesix months ended September 30, 2021 were 3,874 million yen and approximately 4,000 million yen will be recorded in the year
ending March 31, 2022.
In addition to this acquisition, Hitachi America Capital, Ltd. which is a subsidiary located in the U.S., repaid 1,074 million U.S.
dollars (118,554 million yen) of certain loans owed by GlobalLogic.
The operating results of GlobalLogic for the period from the acquisition date to September 30, 2021 were not material.
On a pro forma basis, revenues and net income using an assumed acquisition date for GlobalLogic of April 1, 2021 would not
differ materially from the amounts reported in the condensed quarterly consolidated financial statements for six months ended
September 30, 2021.
(d) Reorganization of the Global Home Appliances Business (excluding Japan)
On December 16, 2020, Hitachi Global Life Solutions, Inc. (Hitachi GLS), a consolidated subsidiary of the Company in the
Smart Life segment, and Arçelik A.S. (Arçelik) signed a share purchase agreement to establish a new joint venture company.
Based on the agreement, Hitachi GLS established a new company and transferred its global home appliances business outside ofJapan into the new company on July 1, 2021, and Hitachi GLS transferred 60% of the shares of common stock of the newcompany to Arçelik. The consideration is 350 million U.S. dollars (38,797 million yen). As a result, Hitachi GLS’s ownership
ratio of shares of the new company decreased from 100% to 40%, and the new company turned into an equity-method associateof the Company.

F-12

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
The following are the main Business Acquisitions and Divestitures for the six months ended September 30, 2020.
(a) Settlement regarding the South African projectAt the meeting of the Board of Directors held on December 18, 2019, the Company approved a settlement with Mitsubishi
Heavy Industries, Ltd. (MHI) regarding the transfer price adjustment, etc. for the South African project previously in the processof arbitration based on economic rationality and business strategy, etc., and reached a settlement agreement with MHI on thesame day. As a result of the conclusion of this settlement, it was agreed that all common shares of Mitsubishi Hitachi Power
Systems, Ltd. (MHPS) held by the Company would be transferred to MHI, and the Company would pay 130,000 million yen to
MHI comprising a settlement payment of 200,000 million yen offset by a consideration of 70,000 million yen in loans receivable
to Mitsubishi Hitachi Power Systems Africa Proprietary Limited (MHPS Africa) to be transferred to MHI. Accordingly, theCompany recorded other accounts payable of 200,000 million yen related to the settlement payment to MHI and other provisionof 273,272 million yen related to the transfer of shares of MHPS. The Company also reversed the provision of 105,041 million
yen related to the transfer price adjustment, etc. of the South African project, which had been recorded prior to the conclusion ofthis agreement. As a result of the above, the Energy segment recorded a loss of 375,967 million yen due to the settlement, whichis included in Other expenses in the condensed quarterly consolidated statement of profit or loss for the nine months ended
December 31, 2019. Regarding the assets to be transferred to MHI under this agreement, the shares of MHPS previously
included in Investments accounted for using the equity method and the loans receivable to MHPS Africa previously included in
Investments in securities and other financial assets classified as non-current assets in the condensed quarterly consolidated
statement of financial position, the total of which was 333,614 million yen, were reclassified to Other current assets in thecondensed quarterly consolidated statement of financial position since they met the criteria as held-for-sale assets in accordancewith IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”.
Furthermore, on March 30, 2020, the Company transferred to MHI, the loans receivable to MHPS Africa, and paid 130,000
million yen to MHI comprising the settlement payment offset by the consideration in loans receivable. On September 1, 2020,
all shares of MHPS held by the Company, 263,614 million yen, which had been classified as held-for-sale assets, weretransferred to MHI, and MHPS ceased to be an associate. Accordingly, the Company reversed other provision of 273,272
million yen related to the transfer of shares of MHPS, which had been included in Other current liabilities in the condensed
quarterly consolidated statement of financial position. On September 14, 2020, the Company and MHI received a notice fromthe Japan Commercial Arbitration Association stating that the arbitration was closed.
On September 1, 2020, MHPS changed its name to Mitsubishi Power, Ltd.

F-13

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021(b) Acquisition of ABB's power grids business
On December 17, 2018, the Company decided to acquire the power grid business of ABB Ltd (ABB) and signed an acquisition
agreement with ABB in order to strengthen and expand energy solution business globally. Pursuant to this agreement, theCompany invested 80.1% in Hitachi ABB Power Grids Ltd (Hitachi ABB Power Grid), which was spun off from ABB, and theacquisition was completed on July 1, 2020. As a result, Hitachi ABB Power Grid became a subsidiary of the Company. The
Company has a call option to purchase 19.9% of the shares of Hitachi ABB Power Grid held by ABB, and ABB has a put option
to sell 19.9% of the shares of Hitachi ABB Power Grid held by ABB to the Company exercisable after 2023.
The following table summarizes the fair value of the consideration paid for Hitachi ABB Power Grid and the amounts of theassets acquired, liabilities assumed, goodwill and non-controlling interests recognized as of the acquisition date.

Millions of yen
65,466372,999
174,198
63,883
239,287

Cash and cash equivalents
Trade receivables and contract assets
Inventories
Other current assets
Property, plant and equipment
Intangible assets
Goodwill (not deductible for tax purposes)
Other intangible assets
Other non-current assets
Total

448,977444,501
16,9101,826,221

Trade payables
Contract liabilities
Other current liabilities
Long-term debt
Other non-current liabilities
Total

199,789
140,005
215,595
349,189
120,332
1,024,910

Cash paid for the acquisitionNon-controlling interests
Total

722,062
79,249801,311

The goodwill mainly comprises excess earning power and expected synergies arising from the acquisition.
Other intangible assets include material intangible assets in the amount of 414,544 million yen (customer relationships of
233,989 million yen, technology of 95,987 million yen, order backlog of 53,542 million yen, and brand license agreement of
31,026 million yen). These intangible assets are measured based on assumptions such as revenue growth rates, gross profit
ratios, attrition rates of existing customers, royalty rates and discount rates.
Non-controlling interests are measured based on the proportionate share of the fair value of the identifiable net assets of Hitachi
ABB Power Grid.
Acquisition related costs of 8,300 million yen have been posted up to the year ended March 31, 2021, and acquisition related
costs included in Other expenses in the condensed quarterly consolidated statement of profit or loss for the six months ended
September 30, 2020 were 2,456 million yen.
In addition to this acquisition, the Company repaid 3,000 million U.S. dollars (323,190 million yen) of certain loans owed by
Hitachi ABB Power Grid from ABB's subsidiary, ABB Capital B.V., and the repayment is included in Purchase of investments
in securities and other financial assets (including investments in subsidiaries and investments accounted for using the equity
method) under Cash flows from investing activities in the condensed quarterly consolidated statement of cash flows for the six
months ended September 30, 2020.
The results of operations of Hitachi ABB Power Grid from the date of acquisition to September 30, 2020 (prior to elimination ofintercompany transactions) included in the condensed quarterly consolidated statement of profit or loss are Revenues of 233,626
million yen, EBIT of (12,615) million yen, and Net income of (9,665) million yen. EBIT and Net income include depreciation

F-14

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
and amortization of 22,624 million yen on Other intangible assets and PP&E that were recognized as a result of this acquisition.
Assuming that such acquisition occurred as of April 1, 2020, the results of operations of the Company for the six months ended
September 30, 2020 (pro forma information not subject to quarterly review) are as follows:
Millions of yen
3,982,536
368,540
229,781

Revenues
EBIT
Net income

Hitachi ABB Power Grid's historical financial information has been adjusted from U.S. GAAP to IFRS to generate pro forma
information. EBIT and Net income include depreciation and amortization of 45,547 million yen on Other intangible assets andPP&E that were recognized as a result of this acquisition.
On June 30, 2021, Hitachi ABB Power Grid changed its name to Hitachi Energy Ltd.
(c) Additional acquisition of shares of Hitachi High-Tech Corporation (Hitachi High-Tech)
On January 31, 2020, the Company decided to conduct a tender offer to acquire all issued shares of Hitachi High-Tech, aconsolidated subsidiary of the Company in the Smart Life segment, to establish the measurement and analysis platform tostrengthen Lumada. The Company commenced the tender offer on February 17, 2020, and the tender offer was completed on
April 6, 2020.
Furthermore, the Company conducted a series of procedures to make Hitachi High-Tech a wholly-owned subsidiary of theCompany. As a result, the Company’s ownership ratio of shares of Hitachi High-Tech increased to 100% on May 20, 2020. The
total consideration paid was 531,084 million yen, and the Company recognized decreases in capital surplus of 321,627 million
yen and non-controlling interest of 209,457 million yen, respectively, for the six months ended September 30, 2020.
(d) Sale of all shares of Hitachi Chemical Company, Ltd. (Hitachi Chemical)
On December 18, 2019, the Company signed a tender offer agreement with Showa Denko K.K. (Showa Denko) and HC
Holdings K.K. (HC Holdings), a wholly-owned subsidiary of Showa Denko, under which the Company agrees to tender all
shares of common stock in Hitachi Chemical held by the Company, in response to a tender offer to be carried out by HC
Holdings for the shares of common stock of Hitachi Chemical, a consolidated subsidiary of the Company. HC Holdingscommenced the tender offer on March 24, 2020, and the tender offer was completed on April 20, 2020. The consideration
received by the Company was 495,145 million yen.
As a result, the Company’s ownership ratio of shares of Hitachi Chemical decreased from 51.4% to 0%, and Hitachi Chemical
was deconsolidated. A gain on the sale of shares of Hitachi Chemical in the amount of 278,839 million yen was recognized in
Other income in the condensed quarterly consolidated statement of profit or loss. Furthermore, non-controlling interest in
Hitachi Chemical decreased 220,402 million yen in Changes in non-controlling interests in the condensed quarterly consolidated
statement of changes in equity as a result of its deconsolidation.
On October 1, 2020, Hitachi Chemical changed its name to Showa Denko Materials Co., Ltd.
(6) Trade Receivables and Contract Assets
The components of trade receivables and contract assets are as follows:
Millions of yen
September 30, 2021
Accounts receivable

March 31, 2021

1,619,255

1,948,569

Contract assets

804,398

634,318

Others138,457

151,589

Total

2,562,110

2,734,476

Trade receivables and contract assets are stated as net of the allowance for doubtful receivables.
Others include notes receivable and electronically recorded monetary claims.
(7) Fair Value of Financial Instruments(a) Fair Value Measurements
The following methods and assumptions are used to measure the fair value of financial assets and liabilities.

F-15

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021

Cash and cash equivalents, Trade receivables, Short-term loans receivable, Other accounts receivable, Short-term debt,
Other accounts payable and Trade payables
The carrying amount approximates the fair value because of the short maturity of these instruments.
Investments in securities and other financial assets
The fair value of lease receivables is based on the present value of lease payments receivable calculated for each group of years tomaturity using discount rates that reflect the time to maturity and credit risk.
Investment securities with quoted market prices are estimated using the quoted share prices. In the absence of an active market forinvestment securities, quoted prices for similar investment securities, quoted prices associated with transactions that are notdistressed for identical or similar investment securities or other relevant information including market interest rate curves,referenced credit spreads or default rates, are used to determine fair value. If significant inputs of fair value measurement areunobservable, the Company uses price information provided by financial institutions to evaluate such investments. The
information provided is corroborated by the income approach using its own valuation model, or the market approach using
comparisons with prices of similar securities.
The fair value of long-term loans receivable is estimated based on the present value of future cash flows using the interest rateapplicable to an additional loan of the same type.
Derivative assets are measured at fair value based on quoted prices associated with transactions that are not distressed, prices ininactive markets, or based on models using interest rate curves and forward and spot prices for currencies and commodities. If
significant inputs are unobservable, the Company mainly uses the income approach or the market approach to corroborate
relevant information provided by financial institutions and other available information.
Long-term debt
The fair value of long-term debt is estimated based on quoted market prices or the present value of future cash flows using themarket interest rates applicable to the same contractual terms.
Other financial liabilities
Derivative liabilities are measured at fair value based on quoted prices associated with transactions that are not distressed, prices
in inactive markets, or based on models using interest rate curves and forward and spot prices for currencies and commodities. If
significant inputs are unobservable, the Company uses mainly the income approach or the market approach to corroborate
relevant information provided by financial institutions and other available information.

F-16

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
(b) Financial Instruments Measured at Amortized Cost
The carrying amounts and estimated fair values of the financial instruments measured at amortized cost as of September 30 andMarch 31, 2021 are as follows.
The fair value estimated for financial assets and liabilities measured at amortized cost is classified in Level 2 of the fair value
hierarchy.
Millions of yen
September 30, 2021
Carrying amounts

March 31, 2021

Estimated
fair values

Carrying amounts

Estimated
fair values

AssetsInvestments in securities and otherfinancial assets
Lease receivables

79,36380,61490,044

91,483

Debt securities

54,681

54,682

55,71455,716Long-term loans receivable

1,790

1,790

21,10322,409356,077

357,845

365,959

367,537

1,222,094

1,225,434

1,295,609

1,296,373

Liabilities
Long-term debt [1]BondsLong-term borrowings[1] Long-term debt is included in Current portion of long-term debt and Long-term debt in the condensed quarterly consolidated
statement of financial position.
(c) Financial Instruments Measured at Fair Value
Financial instruments measured at fair value on a recurring basis after the initial recognition are classified into three levels of thefair value hierarchy based on the measurement inputs’ observability as follows:
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets
Level 2: Valuations measured by direct or indirect observable inputs other than Level 1
Level 3: Valuations measured by significant unobservable inputs
When several inputs are used for a fair value measurement, the level is determined based on the input that is significant with thelowest level in the fair value measurement as a whole.
Transfers between levels are deemed at the beginning of each quarter period.

F-17Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
The following tables present the assets and liabilities that are measured at fair value on a recurring basis as of September 30 andMarch 31, 2021.
September 30, 2021
Class of financial instruments

Millions of yen
Level 1

Level 2

Level 3

Total

FVTPL financial assets:
Investments in securities and otherfinancial assets
Equity securities

92-

15,661

15,753

Debt securities

9,681

4,667

5,529

19,877-

29,66088

29,748

320,740

1,352

109,106

431,198

330,51335,679130,384

496,576-

21,260-21,260-21,260-21,260Derivatives
FVTOCI financial assets:
Investments in securities and otherfinancial assets
Equity securities
Total financial assets at fair value
FVTPL financial liabilities:
Other financial liabilities
Derivatives
Total financial liabilities at fair value
March 31, 2021
Class of financial instruments

Millions of yen
Level 1

Level 2

Level 3

Total

FVTPL financial assets:
Investments in securities and otherfinancial assets
Equity securities

131

-

9,865

9,996

Debt securities

12,749

4,548

6,054

23,351-

34,981

87

35,068235,278977

110,853

347,108

248,158

40,506

126,859

415,523-

26,739-26,739-26,739-26,739Derivatives
FVTOCI financial assets:
Investments in securities and otherfinancial assets
Equity securities
Total financial assets at fair value
FVTPL financial liabilities:
Other financial liabilities
Derivatives
Total financial liabilities at fair value

F-18

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
The following tables present the changes in Level 3 instruments measured on a recurring basis for the six months ended
September 30, 2021 and 2020.
September 30, 2021
Level 3 financial assets
Balance at beginning of period
Gain (loss) in profit or loss [1]Loss in OCI [2]Purchases
Sales and redemption
Acquisitions and divestitures
Transfer from Level 3 [3]OtherBalance at end of period
Unrealized gain relating tofinancial assets held at end of period [4]Millions of yen
Equitysecurities

Debt
securities

Derivatives

Total

120,718
1,738
(96)
6,457
(3,634)
(25)
(301)
(90)
124,767

6,054
(3)
500
(804)
(216)
(2)
5,529

87
1
88

126,859
1,736
(96)
6,957
(4,438)
(241)
(301)
(92)
130,384

1,705

5

1

1,711

September 30, 2020
Level 3 financial assets
Balance at beginning of period
Gain (loss) in profit or loss [1]Gain in OCI [2]Purchases
Sales and redemption
Acquisitions and divestitures
Other
Balance at end of period
Unrealized gain (loss) relating tofinancial assets held at end of period [4]Millions of yen
Equitysecurities

Debt
securities

Derivatives

Total

112,885
(175)
1,171
1,794
(1,113)(3,591)
132
111,103

8,617
45
313
(776)
(656)
2
7,545

6,147
(3)
(6,061)
83

127,649
(133)
1,171
2,107
(7,950)(4,247)
134
118,731

(188)

45

(3)

(146)

[1] Gain (loss) in profit or loss related to FVTPL financial assets is included in Financial income and Financial expenses in thecondensed quarterly consolidated statement of profit or loss.
[2] Gain (loss) in OCI related to FVTOCI financial assets is included in Net changes in financial assets measured at fair value
through OCI in the condensed quarterly consolidated statement of comprehensive income.
[3] Transfer from Level 3 is mainly due to an investee becoming listed on the stock market.
[4] Unrealized gain (loss) relating to FVTPL financial assets held at the end of period is included in Financial income andFinancial expenses in the condensed quarterly consolidated statement of profit or loss.
Fair values are measured by the finance departments in accordance with the Company’s policies and procedures. Valuation
models are determined so that they reflect each financial instrument’s nature, characteristics and risks most appropriately. The
finance departments continually examine changes in important inputs that could affect the fair value. In case the fair value of afinancial instrument was significantly impaired, administrators review and approve the impairment loss.
(d) Other
The Company and its subsidiaries recognize put options on shares of subsidiaries held by non-controlling interests as financial
liabilities at the present value of the exercise price. The Company derecognizes the non-controlling interests and recognizes thedifference between the present value and non-controlling interests in capital surplus.
Put options on non-controlling interests of Hitachi Energy Ltd are measured at the present value of the exercise price. The
carrying amount of the put options above as of September 30 and March 31, 2021 were 241,747 million yen and 237,805 million
yen, respectively, included in Other non-current liabilities in the condensed quarterly consolidated statement of financial position.

F-19

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
(8) Dividends
Dividends paid on the Company’s common stock for the six months ended September 30, 2021 are as follows:

Decision
The Board of Directors
on May 12, 2021

Cash dividends

Appropriation

Cash dividends(millions of yen)fromper share (yen)53,175Retained earnings

55.0

Record date

Effective date

March 31, 2021

June 2, 2021

Dividends on the Company's common stock whose record date falls in the six months ended September 30, 2021 and the effective
date falls in the next period are as follows:

Decision
The Board of Directors
on October 27, 2021

Cash dividends

Appropriation

Cash dividends(millions of yen)fromper share (yen)58,035Retained earnings

Record date

Effective date

60.0 September 30, 2021 November 29, 2021

Dividends paid on the Company’s common stock for the six months ended September 30, 2020 are as follows:

Decision
The Board of Directors
on May 13, 2020

Cash dividends(millions of yen)
48,311

Appropriation
from
Retained earnings

Cash dividends
per share (yen)50.0

Record date

Effective date

March 31, 2020

June 8, 2020

Dividends on the Company's common stock whose record date falls in the six months ended September 30, 2020 and the effective
date falls in the next period are as follows:

Decision
The Board of Directors
on October 28, 2020

Cash dividends(millions of yen)
48,342

Appropriation
from
Retained earnings

F-20

Cash dividends
per share (yen)Record date

Effective date

50.0 September 30, 2020 November 30, 2020

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
(9) Revenues(a) Disaggregation of revenue
The Company derives revenues primarily from contracts with customers. The following table shows the disaggregation ofrevenue attributable to each reportable segment and geographic area.
Effective from April 1, 2021, the Company reclassified its reportable segments. Accordingly, figures for the six months ended
September 30, 2020 have been restated on the basis of the reclassification. Details of the reclassification are described in note 4.
Millions of yen
September 30, 2021
Overseas
Revenues
Subtotal

Total
Revenues

21,059276,739

976,636

163,893

85,759545,775

675,046

58,751

9,859

9,162

117,670

393,053

351,955

27,490144,705

26,844550,994

709,498

268,570

128,574

40,53964,023

9,341

242,477

511,047

Automotive Systems

218,299

281,003147,342

63,02846,284

537,657

755,956

Hitachi Construction Machinery

96,91588,20993,23574,882

120,451

376,777473,692

Hitachi Metals

196,494

98,043

131,641

21,096

9,078

259,858

456,352

Others181,872

26,979

2,705

4,497

1,421

35,602

217,474

Subtotal

2,225,205

1,263,646

728,703621,801

329,399

2,943,549

5,168,754

Corporate items and Eliminations(312,729)(15,490)(2,598)(4,027)(1,245)(23,360)(336,089)

Total

1,912,476

1,248,156

726,105

617,774

328,154

2,920,189

4,832,665

North
America

Japan

Asia

IT

699,897

83,247

96,61575,818Energy129,271

165,738

130,385

Industry

275,383

39,898

Mobility

158,504

Smart Life

Europe

Other
Areas

Millions of yen
September 30, 2020
Overseas
Revenues
Subtotal

Total
Revenues

17,983247,949

947,494

67,18943,717

259,875

398,82945,017

7,257

6,392

93,494

362,500

221,839

24,771

110,754

19,868377,232

538,724

322,892

155,477

58,282

53,18017,614

284,553

607,445

Automotive Systems

122,048

75,20066,63238,316

21,216201,364

323,412

Hitachi Construction Machinery

91,071

79,56947,64843,914

98,700269,831360,902

Hitachi Metals

159,750

72,32287,28015,766

5,713

181,081

340,831

Others

175,953

23,326

3,961

3,627

1,807

32,721

208,674

Subtotal

2,140,711

834,148474,837

406,105

233,010

1,948,100

4,088,811

Corporate items and Eliminations(307,059)(16,713)(2,059)(1,772)(1,151)(21,695)(328,754)

Total

1,833,652

817,435

472,778

404,333

231,859

1,926,405

3,760,057

North
America

Japan

Asia

IT

699,545

83,16880,696

66,102

Energy138,954

88,41960,550Industry

269,006

34,828

Mobility

161,492

Smart Life

F-21

Europe

Other
Areas

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
The IT segment consists of Front Business and Services & Platforms, for which revenue amounted to 654,908 million yen and393,663 million yen for the six months ended September 30, 2021 and 653,931 million yen and 372,025 million yen for the six
months ended September 30, 2020, respectively (including intersegment transactions). Front Business is operated mainly inJapan, and Services & Platforms is operated mainly in Japan, North America and Europe.
The Company's revenues include revenue recognized based on the pattern of the cost accrual arising from long-term projects. Of
the revenue recognized during the six months ended September 30, 2021 and 2020, the amount of revenue recognized based on
the pattern of the cost accrual arising from long-term projects were 711,609 million yen and 580,280 million yen, respectively.
(b) Information about satisfaction of performance obligations
The following is information about satisfaction of performance obligations related to major goods and services of each reportablesegment.
(IT)
Front Business primarily provides goods and services such as system integration, consulting and cloud services. These longterm projects provide goods and services according to customers’ specifications over a specified period of time, and revenue isrecognized mainly based on the pattern of the cost accrual (the progress of the project mostly based on the cost incurred
relative to the estimated total cost) or the passage of time as performance obligations are satisfied over time.
Many of the contracts require payments based on milestones, and in some cases, payments are made before performanceobligations are satisfied.
Services & Platforms primarily sells control systems, software and IT products. Revenue is recognized when control over the
goods is transferred to customers as performance obligations are satisfied at the point in time upon the completion or upondelivery of the goods. The Company’s general terms and conditions apply, and there are no significant transactions in which
payment terms include deferred payments, etc.
(Energy, Industry and Mobility)
The Energy segment includes revenue from businesses such as energy solutions, which are operated mainly in Japan, Asia,
Europe, and North America. The Industry segment includes revenue from businesses such as industry & distribution solutions,which are operated mainly in Japan. The Mobility segment includes revenue from building systems and railway systems
businesses. The building systems business is operated mainly in China and the railway systems business is operated mainly inEurope.
Long-term projects related to contracts such as construction in these segments involve manufacturing and providing goods
based on customers’ specifications over a specified period of time. As performance obligations are satisfied over time, revenue
is recognized mainly based on the pattern of the cost accrual (the progress of the project mostly based on the cost incurred
relative to the estimated total cost). In addition, these segments provide certain services promised in the contracts such as
maintenance throughout the duration of the contract, and recognize revenue over time based on the passage of time. Many of
the contracts require payments based on milestones, and, in some cases, payments are made before performance obligations
are satisfied.
Further, in the sale of industrial equipment, etc. included in the Industry segment, and in the sale of elevators, etc. included in
the Mobility segment, revenue is recognized when control over the goods is transferred to customers as performanceobligations are satisfied at the point in time upon the completion or upon delivery of the goods. The Company’s general terms
and conditions apply, and there are no significant transactions in which payment terms include deferred payments, etc.
(Other)In the Smart Life, Automotive Systems, Hitachi Construction Machinery, and Hitachi Metals segments, performanceobligations are generally satisfied at a point in time upon completion or upon delivery of the goods, and revenue is recognizedwhen control over goods is transferred to customers. The Company’s general terms and conditions apply, and there are no
significant transactions in which payment terms include deferred payments, etc.
These segments provide certain services promised in the contracts such as maintenance throughout the duration of thecontract, and they recognize revenue over time based on the passage of time. The Company’s general terms and conditions
apply, and there are no significant transactions in which payment terms include deferred payments, etc.

F-22

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
(10) Other Income and Expenses
The main components of other income and expenses for the six months ended September 30, 2021 and 2020 are as follows:
Millions of yen
2021

2020

Net gain (loss) on sales and disposals of fixed assets

6,638

(814)

Impairment losses(2,072)(41,605)

Net gain (loss) on business reorganization and others

97,540282,424

Special termination benefits(2,673)(2,499)Impairment losses are mainly recognized on property, plant and equipment, investment properties, goodwill and other intangible
assets. Net gain (loss) on business reorganization and others include gains and losses related to obtaining and losing control ofinvestees and gains and losses related to obtaining and losing significant influence over investees.
Restructuring charges (structural reform expenses) included in other expenses for the six months ended September 30, 2021 and 2020
were 4,745 million yen and 44,104 million yen, respectively. Restructuring charges (structural reform expenses) mainly include
impairment losses and special termination benefits.
Impairment losses for the six months ended September 30, 2020 include 24,589 million yen in the Hitachi Metals segment, mainly
consisting of 15,657 million yen in impairment losses due to the lower than expected future revenue projected for the magnetic
materials business, representing impairment losses on property, plant and equipment of 10,356 million yen and on intangible assetsof 5,301 million yen. The recoverable amount was determined on the basis of value in use, which was measured at 74,875 million
yen as of September 30, 2020, the date on which impairment losses were recognized. The value in use was discounted at 10.1%(before tax), which was derived from the weighted average cost of capital.
(11) Financial Income and Expenses
The main components of financial income and expenses for the six months ended September 30, 2021 and 2020 are as follows:
Millions of yen
2021

2020

Dividends received

2,031

2,091

Exchange gain (loss)

4,820(3,633)

Dividends received for the six months ended September 30, 2021 and 2020 are from FVTOCI financial assets.

F-23

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
(12) Discontinued Operations
In the Energy segment, the Company classified the part of thermal power generation systems business which was not transferred to
Mitsubishi Hitachi Power Systems, Ltd. (currently Mitsubishi Power, Ltd.) for business integration in the thermal power
generation systems business with Mitsubishi Heavy Industries, Ltd. but was operated by the Company and certain subsidiaries as
discontinued operations in the condensed quarterly consolidated statement of profit or loss since the projects were completed in theyear ended March 31, 2015.
Profit or loss and cash flows from the discontinued operations for the six months ended September 30, 2021 and 2020 are as
follows:
Millions of yen
2021

2020

Profit or loss from discontinued operations
Revenues

0

7

Cost of sales and expenses

0

(693)

0

(686)

Income (loss) from discontinued operations, before income taxes
Income taxes
Income (loss) from discontinued operations

-

-

0

(686)
Millions of yen

2021

2020

Cash flows from discontinued operations
Cash flows from operating activities

0

(611)

Cash flows from investing activities--

Cash flows from financing activities

0

736

F-24

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
(13) Earnings Per Share (EPS) Information
The calculations of basic and diluted EPS attributable to Hitachi, Ltd. stockholders for the six months ended September 30, 2021
and 2020 are as follows:
Six months ended September 30
Number of shares
2021
Weighted average number of shares on which basic EPS is calculated

2020

966,352,029

965,926,306

Stock options

525,145

680,140

Restricted stock

705,144469,809

Effect of dilutive securities

Restricted stock units
Number of shares on which diluted EPS is calculated

33,714

8,544

967,616,032

967,084,799
Millions of yen

2021

2020

Net income from continuing operations,
attributable to Hitachi, Ltd. stockholders
Basic322,444

251,441--

322,444

251,441

Basic

0

(686)

Effect of dilutive securities--

Diluted0(686)

322,444

250,755--

322,444

250,755

Effect of dilutive securities
Diluted
Net income (loss) from discontinued operations,
attributable to Hitachi, Ltd. stockholders

Net income attributable to Hitachi, Ltd. stockholders
Basic
Effect of dilutive securities
Diluted

Yen
2021

2020

EPS from continuing operations,
attributable to Hitachi, Ltd. stockholders
Basic333.67260.31

Diluted333.24260.00

Basic

0.00

(0.71)

Diluted0.00(0.71)

Basic

333.67259.60

Diluted333.24259.29EPS from discontinued operations,
attributable to Hitachi, Ltd. stockholders

EPS attributable to Hitachi, Ltd. stockholders

F-25

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
The calculations of basic and diluted EPS attributable to Hitachi, Ltd. stockholders for the three months ended September 30, 2021
and 2020 are as follows:
Three months ended September 30
Number of shares
2021
Weighted average number of shares on which basic EPS is calculated

2020

966,404,314

965,946,906

Stock options

499,000

680,140

Restricted stock

684,195

453,873

Restricted stock units

32,586

7,474

967,620,095

967,088,393

Effect of dilutive securities

Number of shares on which diluted EPS is calculated

Millions of yen
2021

2020

Net income from continuing operations,
attributable to Hitachi, Ltd. stockholders
Basic200,21327,853--200,21327,853

Basic

0

(349)

Effect of dilutive securities--

Diluted0(349)

200,21327,504--200,21327,504

Effect of dilutive securities
Diluted
Net income (loss) from discontinued operations,
attributable to Hitachi, Ltd. stockholders

Net income attributable to Hitachi, Ltd. stockholders
Basic
Effect of dilutive securities
Diluted

Yen
2021

2020

EPS from continuing operations,
attributable to Hitachi, Ltd. stockholders
Basic207.1728.83

Diluted206.91

28.80

Basic

0.00

(0.36)

Diluted

0.00(0.36)

Basic

207.17

28.47

Diluted206.91

28.44

EPS from discontinued operations,
attributable to Hitachi, Ltd. stockholders

EPS attributable to Hitachi, Ltd. stockholders

F-26

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2021
(14) Contingencies
Litigation
In November 2017, a subsidiary in Japan received a complaint that was filed against three companies, namely a construction
company of a condominium complex, the subsidiary and a secondary subcontractor, by a contractee in Japan seeking
approximately 45.9 billion yen in compensation for expenses allegedly incurred arising from concerns over partial deficienciesof piling work during the construction phases of the condominium complex, which the subsidiary contracted as the primary
subcontractor. In July 2018, the compensation claim against these three companies was amended to approximately 51.0 billion
yen by the contractee.
In relation to the aforementioned lawsuit, in April 2018, the subsidiary in Japan received a complaint that was filed against thesubsidiary and the secondary subcontractor, by the construction company of the condominium complex seeking approximately
49.6 billion yen in compensation for expenses allegedly incurred arising from the aforementioned lawsuit. In July 2018, thecompensation claim against these two companies was amended to approximately 54.8 billion yen by the construction companyof the condominium complex. Although the subsidiary in Japan will address these claims and explain its position, there can be
no assurance that it will not be held liable for any amounts claimed.
In December 2017, a subsidiary in Europe received a complaint filed by a customer in Europe seeking compensation forconsequential losses of 263 million euro (34,159 million yen) and interest allegedly incurred by performance defects of apower plant. As of September 30, 2021, the amount of compensation claimed by the customer was changed to 270 million euro
(35,067 million yen). Although the subsidiary in Europe will vigorously defend itself against this lawsuit, there can be noassurance that it will not be held liable for any amounts claimed.
The Company and its subsidiaries execute a number of business reorganizations, including mergers, acquisitions anddivestitures. Contracts for these reorganizations include clauses for transaction price adjustments subsequent to thereorganizations. There is a possibility products or services provided by the Company and its subsidiaries contain defects. As
the result of price adjustments, or in compensation for defects in products or services etc. there is a possibility that theCompany pays for any amounts.
Depending upon the outcome of the above legal proceedings, there may be an adverse effect on the consolidated financial
position or results of operations. Currently, the Company is unable to estimate the adverse effect, if any, of many of theseproceedings. The actual amount of fines, surcharge payments or any other payments resulting from these legal proceedings
may be different from the accrued amounts.
In addition to the above, the Company and its subsidiaries are subject to legal proceedings and claims which have arisen in theordinary course of business and have not been finally adjudicated. These actions when ultimately concluded and determined
will not, in the opinion of management, have a material adverse effect on the condensed quarterly consolidated financial
statements of the Company and subsidiaries.
(15) Approval of Condensed Quarterly Consolidated Financial Statements
The condensed quarterly consolidated financial statements were approved on November 12, 2021 by Keiji Kojima, President and
COO of the Company.

F-27

[Cover][Document Filed][Applicable Law]
[Filed with][Filing Date][Company Name][Company Name in English][Title and Name of Representative][Title and Name of CFO]
[Address of Head Office][Place Where Available for Public Inspection]

Confirmation Letter
Article 24-4-8, Paragraph 1 of the Financial Instruments and Exchange Act of Japan
Director, Kanto Local Finance Bureau
November 12, 2021
Kabushiki Kaisha Hitachi Seisakusho
Hitachi, Ltd.
Keiji Kojima, President & COO
Yoshihiko Kawamura, Senior Vice President and Executive Officer
6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo
Tokyo Stock Exchange, Inc.
(2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)
Nagoya Stock Exchange, Inc.
(8-20, Sakae 3-chome, Naka-ku, Nagoya)A-1

1. Matters Related to Adequacy of Statements Contained in the Quarterly Report
Mr. Keiji Kojima, President & COO, and Mr. Yoshihiko Kawamura, Senior Vice President and Executive Officer, confirmedthat statements contained in the Quarterly Report for the second quarter of the 153rd fiscal year (from July 1, 2021 to September 30,2021) were adequate under the Financial Instruments and Exchange Act.
2. Special Notes
None.

A-2