[Translation]

Quarterly Report(The Third Quarter of 154th Business Term)
From October 1, 2022 to December 31, 2022

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]

February 9, 2023

[Fiscal Year]

The Third Quarter of 154th Business Term (from October 1, 2022 to December 31, 2022)[Company Name]

Kabushiki Kaisha Hitachi Seisakusho[Company Name in English]

Hitachi, Ltd.

[Title and Name of Representative]

Keiji Kojima, President & CEO[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, onetenth of 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 …………………………………………………………………………………………………………
4
1. Risk Factors ………………………………………………………………………………………………………………
4
2. Management’s Discussion and Analysis of Consolidated Financial Condition, Results of Operations and Cash Flows …
4
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 …………………………………………………………………………………………………… 10(6) Information on voting rights ………………………………………………………………………………………… 11
2. Changes in Senior Management ………………………………………………………………………………………… 11
IV. Financial Information ……………………………………………………………………………………………………… 12
Part II Information on Guarantors, etc. for the Company ………………………………………………………………………… 12[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.
(Millions of yen, unless otherwise stated)
Nine months ended
December 31, 2021

Nine months ended
December 31, 2022

Year ended
March 31, 2022

7,346,665

8,108,796[2,514,000][2,692,017]

Income before income taxes

593,256

456,819

Net income attributable to Hitachi, Ltd.

450,785

292,232

stockholders[128,341][119,717]

Comprehensive income attributable to Hitachi,Ltd. stockholders

556,799481,233

958,008

Total Hitachi, Ltd. stockholders’ equity

3,950,153

4,524,170

4,341,836

Total equity

4,901,382

5,170,596

5,355,277

Total assets

13,423,876

13,281,006

13,887,502

Earnings per share attributable to Hitachi, Ltd.

466.47306.99stockholders, basic (yen)[132.80][127.48]

Earnings per share attributable to Hitachi, Ltd.
stockholders, diluted (yen)465.86306.66602.96

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

29.4

34.1

31.3

Net cash provided by (used in) operating
activities

257,156

380,090729,943

Net cash provided by (used in) investing
activities(1,027,728)(145,277)(1,048,866)

Net cash provided by (used in) financing
activities

710,132(260,857)(202,739)

Cash and cash equivalents at end of period

990,202959,299

968,827

Revenues

10,264,602
839,333
583,470

603.75(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. 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 December 31, 2021 and
2022, respectively.
3. The number of “Cash and cash equivalents at end of period” for nine months ended December 31, 2022 are the sum of“Cash and cash equivalents in the condensed quarterly consolidated statement of financial position” and “Cash and cash
equivalents included in assets held for sale” as of December 31, 2022, respectively. Details are described in “Condensed
Quarterly Consolidated Financial Statements - Note to Condensed Quarterly Consolidated Financial Statements
December 31, 2022 - (6) Cash and Cash Equivalents”.

12. Description of Business
There were no material changes in principal businesses of Hitachi during the nine months ended December 31, 2022. The
Hitachi Group is comprised of the Company, 760 consolidated subsidiaries, and 369 equity-method associates and joint-ventures.
Effective from April 1, 2022, the Company reclassified its reportable segments in seven segments: three sectors as “Digital
Systems & Services,” “Green Energy & Mobility” and “Connective Industries,” Automotive Systems, two listed subsidiary groups
as Hitachi Construction Machinery and Hitachi Metals, and Others.
Major business and the positioning of principal affiliated companies for each segment and changes in Business Unit (BU) of theCompany and principal affiliated companies during the nine months ended December 31, 2022 were as follows.
(As of December 31, 2022)
BU and principal affiliated companies
Main products and services
BU
Affiliated companies
Digital Systems & Services
Financial Institutions BU[Consolidated subsidiaries]
Digital Solutions (System
Social Infrastructure Systems BU
Hitachi Information & Telecommunication
Integration, Consulting, Cloud
Services & Platforms BU
Engineering, Ltd.
Services), IT Products (Storage,
Hitachi Channel Solutions, Corp.
Servers), Software, ATMs
Hitachi Solutions, Ltd.
Hitachi Systems, Ltd.
GlobalLogic Worldwide Holdings, Inc.
Hitachi Computer Products (America), Inc.
Hitachi Digital LLC (Note 2)
Hitachi Payment Services Private Limited
Hitachi Vantara LLC
Green Energy & Mobility
Power Grids BU[Consolidated subsidiaries]
Energy Solutions (Power Grids,
Energy BU
Hitachi-GE Nuclear Energy, Ltd.
Renewable Energy, Nuclear),
Nuclear Energy BU
Hitachi Plant Construction, Ltd.
Railway Systems
Railway Systems BU
Hitachi Power Semiconductor Device, Ltd.
Hitachi Power Solutions Co., Ltd.
Hitachi Energy Ltd
Hitachi Rail Ltd.
Connective Industries
Building Systems BU[Consolidated subsidiaries]
Building Systems (Elevators,
Industrial Digital BU
Hitachi Building Systems Co., Ltd.
Escalators),
Water & Environment BU
Hitachi Global Life Solutions, Inc.
Smart Life & Ecofriendly Systems
Hitachi High-Tech Corporation(Home Appliances, Air
Hitachi Industrial Equipment Systems Co.,
Conditioners),
Ltd.
Measurement and Analytical
Hitachi Industrial Products, Ltd.
Systems (Medical and Bio,
Hitachi Industry & Control Solutions, Ltd.
Semiconductor, Industry),
Hitachi Plant Services Co., Ltd.
Industry & Distribution Solutions,
Hitachi Elevator (China) Co., Ltd.
Water & Environment Solutions,
Hitachi Industrial Holdings Americas, Inc.
Industrial Machinery
JR Technology Group, LLC
Sullair, LLC[Equity-method associates]
Hitachi Kokusai Electric Inc.
Arcelik Hitachi Home Appliances B.V.
Johnson Controls-Hitachi Air Conditioning
Holding (UK) Ltd
Automotive Systems[Consolidated subsidiaries]－
Powertrain, Chassis, Advanced
Hitachi Astemo, Ltd.
Driver Assistance, Motorcycle
Hitachi Astemo Americas, Inc.
Systems
Hitachi Construction Machinery[Consolidated subsidiaries]－
Hydraulic Excavators, Wheel－ (Note 3)
Loaders, Mining Machinery,
Maintenance and Services,
Construction Solutions, MineManagement Systems
Hitachi Metals[Consolidated subsidiaries]－
Specialty Steel Products,
Hitachi Metals, Ltd. (Note 4)
Functional Components andEquipment, Magnetic Materials andPower Electronics Materials,
Wires, Cables and Related Products
Others[Consolidated subsidiaries]－
Optical Disk Drives, Property
Hitachi-LG Data Storage, Inc.
Management
Hitachi Real Estate Partners, Ltd.
Hitachi America, Ltd.
Hitachi Asia Ltd.
Hitachi (China), Ltd.
Hitachi Europe Ltd.
Hitachi India Pvt. Ltd.

2

(Notes) 1. Hitachi America, Ltd., Hitachi Asia Ltd., Hitachi (China), Ltd., Hitachi Europe Ltd. and Hitachi India Pvt. Ltd. are the
Hitachi Group’s regional supervising company for Americas, Asia, China, Europe and India, and they sell the HitachiGroup’s products.
2. Hitachi Global Digital Holdings LLC changed its name to Hitachi Digital LLC on April 1, 2022.
3. Hitachi Construction Machinery Co., Ltd. has ceased to be a consolidated subsidiary of the Company and become an
equity-method associate of the Company as a result of transfer of a part of its shares in Hitachi Construction MachineryCo., Ltd. on August 23, 2022. Consequently, there is no company which belongs to the Hitachi Construction Machinery
segment since then.
4. Hitachi Metals, Ltd. has ceased to be an affiliate of the Company due to transferring its shares on January 5, 2023.
Consequently, there is no company which belongs to the Hitachi Metals segment since then. Hitachi Metals, Ltd changed
its name to Proterial, Ltd. on January 4, 2023.
5. In addition to the table above, the major equity-method associates are Hitachi Construction Machinery Co., Ltd. andHitachi Transport System, Ltd.

3

II. Business Overview
1. Risk Factors
There were no new risk factors recognized during the nine months ended December 31, 2022.
During the nine months ended December 31, 2022, the following is the material change in the risk factors stated in the
Annual Securities Report for the 153rd business term pursuant to the Financial Instruments and Exchange Act of Japan, and therelevant change is underlined.
(Before the Change)
Restructuring of Our Business<Text above omitted>
Our restructuring efforts may not be implemented in a timely manner or at all, including due to governmental
regulations, employment issues or a lack of demand in the M&A market for businesses we may seek to sell. In addition, we
have listed subsidiaries and from time to time the interests of these listed subsidiaries’ shareholders may conflict with ourinterests. Such conflicts of interest may result in difficulties in timely implementing group-wide policies, including
mergers, company splits and other similar transactions to which the listed subsidiaries are parties. Restructuring efforts may
also bring about unintended consequences, such as negative customer or employee perceptions, and have caused and may
continue to cause us to incur significant expenses and other costs, including additional impairment losses on our fixed
assets and intangible assets, write-offs of inventory and losses on the disposal of fixed assets and losses related to the saleof securities. Current and future restructuring efforts may be unsuccessful or less successful than we presently anticipate
and may adversely affect our business, financial condition and results of operations.
<Text below omitted>(After the Change)
Restructuring of Our Business<Text above omitted>
Our restructuring efforts may not be implemented in a timely manner or at all, including due to governmental
regulations, employment issues or a lack of demand in the M&A market for businesses we may seek to sell. Restructuring
efforts may also bring about unintended consequences, such as negative customer or employee perceptions, and havecaused and may continue to cause us to incur significant expenses and other costs, including additional impairment losses
on our fixed assets and intangible assets, write-offs of inventory and losses on the disposal of fixed assets and losses related
to the sale of securities. Current and future restructuring efforts may be unsuccessful or less successful than we presently
anticipate and may adversely affect our business, financial condition and results of operations.
<Text below omitted>
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 nine months ended December 31, 2022 were as follows.
Revenues increased 10% to 8,108.7 billion yen, as compared with the nine months ended December 31, 2021, due mainly tothe impact of foreign exchange and growth of customers’ investment, as well as increased revenues resulting from the acquisitionof GlobalLogic Inc. (“GlobalLogic”). The increase was partially offset by conversion of Hitachi Construction Machinery Co.,
Ltd. to an equity-method affiliate of the Company as a result of selling a part of shares of Hitachi Construction Machinery Co.,Ltd.
Cost of sales increased 11% to 6,123.9 billion yen and the ratio of cost of sales to revenues increased 1% to 76%, ascompared with the nine months ended December 31, 2021, respectively. Gross profit increased 9% to 1,984.8 billion yen, as
compared with the nine months ended December 31, 2021.
Selling, general and administrative expenses (“SG&A”) increased 10% to 1,457.3 billion yen, as compared with the ninemonths ended December 31, 2021, and the ratio of SG&A to revenues was 18%, which was the same level as for the nine months
ended December 31, 2021.
Adjusted operating income (presented as revenues less cost of sales as well as SG&A) increased 43.0 billion yen to 527.4
billion yen, as compared with the nine months ended December 31, 2021.
Share of profits of investments accounted for using the equity method increased 0.6 billion yen to profit of 34.0 billion yen,
as compared with the nine months ended December 31, 2021.
As a result of foregoing, adjusted EBITA (defined as Adjusted Earnings before Interest, Taxes and Amortization, andrepresenting the operating income, adding back the amortization of intangible assets, etc. recognized upon business combinations,and adding or deducting share of profits (losses) of investments accounted for using the equity method) increased 49.0 billion yen
to 624.2 billion yen, as compared with the nine months ended December 31, 2021..
Other income decreased 28.7 billion yen to 71.6 billion yen, as compared with the nine months ended December 31, 2021,
due mainly to the gains on business reorganization and others posted in the nine months ended December 31, 2021 by selling apart of shares of Arcelik Hitachi Home Appliances B.V. and a part of shares of Agility Trains (East) Holdings Limited, Ltd. The

4

decrease was partially offset by the gains on business reorganization and others as a result of deconsolidation of Hitachi
Construction Machinery Co., Ltd. Other expenses increased 121.1 billion yen to 152.3 billion yen, as compared with the ninemonths ended December 31, 2021, due mainly to expenses posted by shifting to risk-sharing corporate pension and the
impairment losses on goodwill of Hitachi Energy owning to the rise in discount rate following the significant rise in interest rates,
etc.
Financial income (excluding interest income) decreased 5.0 billion yen to 9.9 billion yen and financial expenses (excludinginterest charges) increased 15.7 billion yen to 16.2 billion yen, as compared with the nine months ended December 31, 2021,
respectively.
Eearnings before interest and taxes, which is presented as income from continuing operations, before income taxes lessinterest income plus interest charges decreased 126.8 billion yen to 474.5 billion yen, as compared with the nine months ended
December 31, 2021.
Interest income increased 6.2 billion yen to 17.6 billion yen and interest charges increased 15.8 billion yen to 35.3 billion
yen, as compared with the nine months ended December 31, 2021, respectively.
Income before income taxes decreased 136.4 billion yen to 456.8 billion yen, as compared with the nine months ended
December 31, 2021.
Income taxes increased 41.9 billion yen to 122.9 billion yen, as compared with the nine months ended December 31, 2021.
Net income decreased 178.3 billion to 333.8 billion yen, as compared with the nine months ended December 31, 2021.
Net income attributable to non-controlling interests decreased 19.8 billion yen to 41.6 billion yen, as compared with the ninemonths ended December 31, 2021.
As a result of the foregoing, net income attributable to Hitachi, Ltd. stockholders decreased 158.5 billion yen to 292.2 billion
yen, as compared with the nine months ended December 31, 2021.
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, 2022, the company reclassified its reportable segment in seven segments: Digital Systems &Services, Green Energy & Mobility, Connective Industries, Automotive systems, Hitachi Construction Machinery, Hitachi Metals
and Others. Accordingly, the amounts previously reported for the nine months ended December 31, 2021 have been restated inconformity with the new segments.
(Digital Systems & Services)
Revenues increased 12% to 1,678.0 billion yen, as compared with the nine months ended December 31, 2021, due mainly tothe impact of foreign exchange as well as strong results in Lumada business and GlobalLogic.
Adjusted EBITA increased 8.5 billion yen to 188.3 billion yen, as compared with the nine months ended December 31, 2021,
due mainly to increased revenues, despite cost increase in a certain project.
(Green Energy & Mobility)
Revenues increased 18% to 1,723.7 billion yen, as compared with the nine months ended December 31, 2021, due mainly tothe impact of foreign exchange and strong results in Hitachi Energy and Railway Systems business.
Adjusted EBITA increased36.9 billion yen to 91.9 billion yen, as compared with the nine months ended December 31, 2021,
due mainly to increased revenues and improved profitability in Railway Systems business, despite decreased profits due to cost
increase in a certain project in Energy business.
(Connective Industries)
Revenues increased 9% to 2,170.3 billion yen, as compared with the nine months ended December 31, 2021, due mainly tothe impact of foreign exchange and strong results in Measurement and Analytical Systems business and Building Systems
business. The increase was partially offset by decreased revenues in Smart Life & Ecofriendly Systems business resulting fromthe impact of selling of overseas home appliance business, and municipal lockdowns in China.
Adjusted EBITA increased 41.4 billion yen to 227.4 billion yen, as compared with the nine months ended December 31,
2021, due mainly to increased revenues, despite decreased profits due to increased investment and sales expenses associated withpromotion activities in Industrial Digital business.
(Automotive Systems)
Revenues increased 20% to 1,377.2 billion yen, as compared with the nine months ended December 31, 2021, due mainly tothe impact of foreign exchange and moderate production recovery of OEMs, despite the factors decreasing profits such as thecontinuous semiconductor shortage and supply chain disruptions in China.
Adjusted EBITA increased 2.5 billion yen to 39.8 billion yen, as compared with the nine months ended December 31, 2021,
due mainly to increased revenues, despite soaring raw material prices.
(Hitachi Construction Machinery)
Revenues decreased 34% to 475.1 billion yen, as compared with the nine months ended December 31, 2021, due mainly toconversion of Hitachi Construction Machinery Co., Ltd., which was included in Hitachi Construction Machinery segment, to an
equity-method affiliate of the Company as a result of selling a part of shares of Hitachi Construction Machinery Co., Ltd. inAugust 2022.

5

Adjusted EBITA decreased 24.9 billion yen to 43.2 billion yen, as compared with the nine months ended December 31,
2021, due mainly to the impact of selling a part of shares of Hitachi Construction Machinery Co., Ltd. as described above.
(Hitachi Metals)
Revenues increased 23% to 847.7 billion yen, as compared with the nine months ended December 31, 2021, due mainly tothe sliding-scale system by soring material prices and the impact of foreign exchange.
Adjusted EBITA increased 19.5 billion yen to 43.0 billion yen, as compared with the nine months ended December 31, 2021,
due mainly to increased revenues and improved profitability owing to cost reduction measures .
(Others)
Revenues increased 3% to 332.9 billion yen, as compared with the nine months ended December 31, 2021.
Adjusted EBITA decreased 5.9 billion to 9.4 billion yen, as compared with the nine months ended December 31, 2021.
Revenues by Market
Revenues in Japan were 2,873.1 billion yen, which was the same level as for the nine months ended December 31, 2021,
despite increased revenues mainly in Hitachi Metals, Automotive Systems and Connective Industries. The increase was partially
offset by conversion of Hitachi Construction Machinery Co., Ltd. to an equity-method affiliate of the Company.
Overseas revenues increased 17% to 5,235.6 billion yen, as compared with the nine months ended December 31, 2021, due
mainly to the impact of foreign exchange, as well as increased revenues in Green Energy & Mobility sector resulting from thestrong results in Hitachi Energy and Railway Systems business, in the Automotive Systems segment resulting from moderate
production recovery of OEMs, and in Digital Systems & Services sector resulting from the acquisition of GlobalLogic.
As a result, the ratio of overseas revenues to total revenues increased 4% to 65%, as compared with the nine months ended
December 31, 2021.
(2) Analysis of Financial Condition and Cash Flows
Liquidity and Capital Resources
During the nine months ended December 31, 2022, 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 cash outflow from a change in trade payables in the nine months ended December 31, 2022 was 19.2 billion yen, as
compared with net cash inflow of 47.3 billion yen for the nine months ended December 31, 2021. Net cash inflow from a change
in trade receivables and contract assets increased by 3.4 billion yen, as compared with the nine months ended December 31, 2021.
Net cash outflow from a change in inventories decreased by 9.7 billion yen, and income tax payment decreased by 78.9 billion
yen, as compared with the nine months ended December 31, 2021, respectively.
As a result of the foregoing, net cash provided by operating activities was 380.0 billion yen in the nine months ended
December 31, 2022, an increase of 122.9 billion yen compared with the nine months ended December 31, 2021.
(Cash Flows from Investing Activities)
Net amount of investments related to property, plant and equipment* was 256.2 billion yen in the nine months ended
December 31, 2022 and this net sum decreased by 1.2 billion yen compared with the nine months ended December 31, 2021.
Purchase of investments in securities and other financial assets (including investments in subsidiaries and investments accounted
for using the equity method) in the nine months ended December 31, 2022 decreased by 890.2 billion yen, as compared with thenine months ended December 31, 2021, due mainly to the purchase of shares of GlobalLogic Worldwide Holdings, Inc. in thenine months ended December 31, 2021. 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 nine months ended December 31, 2022
increased by 36.1 billion yen, as compared with the nine months ended December 31, 2021, due mainly to the sale of shares ofHitachi Construction Machinery Co., Ltd.
As a result of the foregoing, net cash used in investing activities was 145.2 billion yen in the nine months ended December
31, 2022, a decrease of 882.4 billion yen compared with the nine months ended December 31, 2021.
* 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 outflow related to long-term debt** in the nine months ended December 31, 2022 decreased by 115.2 billion yen, as
compared with the nine months ended December 31, 2021. However, net cash inflow from a change in short-term debt in the ninemonths ended December 31, 2022 decreased by 622.4 billion yen, as compared with the nine months ended December 31, 2021
and acquisition of common stock for treasury in the nine months ended December 31, 2022 increased by 199.9 billion yen, as
compared with the nine months ended December 31, 2021.

6

As a result of the foregoing, net cash used in financing activities was 260.8 billion yen in the nine months ended December
31, 2022, as compared with 710.1 billion yen of net cash inflow in the nine months ended December 31, 2021.
** 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 December 31, 2022 were 959.2 billion yen, a decrease of 9.5
billion yen from March 31, 2022. Free cash flows, the sum of cash flows from operating and investing activities, were an inflow
of 234.8 billion yen in the nine months ended December 31, 2022, an increase of 1,005.3 billion yen compared with the ninemonths ended December 31, 2021.
Assets, Liabilities and Equity
The following is an overview of Hitachi’s assets, liabilities and equity as of December 31, 2022.
Total assets were 13,281.0 billion yen, a decrease of 606.4 billion yen from March 31, 2022, due mainly to conversion of
Hitachi Construction machinery Co., Ltd. to an equity-method affiliate of the Company, despite increased assets resulting fromthe impact of foreign exchange.
Total interest-bearing debt, the sum of short-term debt and long-term debt including current portion of long-term debt, was
3,054.7 billion yen, a decrease of 71.9 billion yen from March 31, 2022, due mainly to a decrease in current portion of long-term
debt and long-term debt, despite an increase in short term debt.
Total Hitachi, Ltd. stockholders’ equity increased by 182.3 billion yen from March 31, 2022, to 4,524.1 billion yen. The ratioof total Hitachi, Ltd. stockholders’ equity to total assets was 34.1%, as compared with 31.3% as of March 31, 2022.
Non-controlling interests were 646.4 billion yen, a decrease of 367.0 billion yen from March 31, 2022.
Total equity was 5,170.5 billion yen, a decrease of 184.6 billion yen from March 31, 2022. The ratio of interest-bearing debt
to total equity was 0.59, as compared with 0.58 as of March 31, 2022.
(3) Management Policy
There were no material changes in Hitachi’s management policy during the nine months ended December 31, 2022.
(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 nine months ended December 31,
2022.
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 nine months ended December 31, 2022.
(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 153rd business term pursuant to the Financial Instruments andExchange Act of Japan. The Hitachi Group’s R&D expenditures in the nine months ended December 31, 2022 were 232.4 billion
yen, 2.9% of revenues. A breakdown of R&D expenditures by segment is shown below.
(Billions of yen)Segment

Nine months ended
December 31, 2022

Digital Systems & Services

38.5

Green Energy & Mobility

37.1

Connective Industries

61.4

Automotive Systems

56.3

Hitachi Construction Machinery

9.5

Hitachi Metals

9.1

Others1.4

Corporate items & Eliminations

18.8

Total

232.4

7

(6) Property, Plant and Equipment
The major property, plants and equipment materially changed during the nine months ended December 31, 2022 are as
follows.
Breakdown by Segment(As of December 31, 2022)
Book value (Millions of yen)Segment

Land[Area inthousands
2of m ]

Hitachi Construction-

Machinery(Note 1)[-]Tools,
furnitureandfixtures

Number of
employees

Buildings
andstructures

Machineryandvehicles

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

26,902Right-of-use
AssetsConstructionin progress

Other

Total

-

Hitachi Metals(Note 2)[-]

(Notes) 1. As Hitachi Construction Machinery Company, Ltd. was converted into an equity-method associate of the Company fromits subsidiary on August 23, 2022, there is no company which belongs to the Hitachi Construction Machinery segment.
Consequently, no property, plants and equipment were recorded in the segment.
2. As of December 31, 2022, the assets which belong to the Hitachi Metals Segment were classified as assets held for sale.
Details are described in “Condensed Quarterly Consolidated Financial Statements - Notes to Condensed Quarterly
Consolidated Financial Statements December 31, 2022 - (9) Assets Held for Sale”.
Domestic subsidiaries and Overseas subsidiaries
As Hitachi Construction Machinery Company, Ltd. was converted into an equity-method associate on August 23, 2022, theTsuchiura Works, Hitachinaka-Rinko Works and Hitachinaka Works of Hitachi Construction Machinery Company, Ltd. are nolonger the facilities of the Company’s domestic subsidiaries.
As of December 31, 2022, the assets which belong to Hitachi Metals Segment, inluding Yasugi Works and Ibaraki Works of
Hitachi Metals, Ltd., Hitachi Metals Neomaterial., Ltd. and Waupaca Foundry, Inc., were classified as assets held for sale.
(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, andhas 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, 2023 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
153rd business term.

Segment

The amount of capital investment
for the fiscal year ending March 31, 2023
(Billions of yen)
Initial Plan

Updated Plan

Digital Systems & Services

65.0

62.0

Green Energy & Mobility

80.0

78.0

Connective Industries

76.0

70.0

Automotive Systems

96.0

73.0

Hitachi Construction Machinery

16.0

29.8

Hitachi Metals

16.0

20.1

Others27.0

21.0

Corporate Items & Eliminations

16.0

15.9

Total

392.0

370.0

(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 “1. Risk Factors” and “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 with respect to certain future events and financial performance and include any statement that does not directly
relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,”“project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Suchstatements are based on currently available information and are subject to various risks and uncertainties that could cause actual
results to differ
materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forwardlooking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue relianceshould 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:• 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;• credit conditions of Hitachi’s customers and suppliers;• 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;• uncertainty as to Hitachi’s ability to response to tightening of regulations to prevent climate change;• 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 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;• exacerbation of social and economic impacts of the spread of COVID-19;• 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;• 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;• 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 demandof products, etc., exchange rates and/or price of raw materials or shortages of materials, parts and components;• uncertainty as to the success of cost structure overhaul;• 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;• the potential for significant losses on Hitachi’s investments in equity-method associates and joint ventures;• 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 access to, or ability to protect, certain intellectual property; and• uncertainty 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 nine months ended December 31, 2022.

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
Number of sharesissued as of the end of
fiscal year (shares)(December 31, 2022)

Number of sharesissued as of thefiling date (shares)(Note)(February 9, 2023)

Commonstock

938,083,077

938,083,077

Tokyo, Nagoya

Total

938,083,077

938,083,077

-

Class

Stock exchange on which
the Company is listed

Description

The number of shares per
one unit of shares is 100
shares.
-(Note) The "Number of shares issued as of the filing date" does not include shares issued upon exercise of stock acquisition rights fromFebruary 1, 2023 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

December 14, 2022

Change in
the total
number ofissued shares(shares)(30,488,800)

Balance of thetotal number ofissued shares(shares)

Change incommonstock(Millionsof yen)Balance ofcommonstock(Millionsof yen)Change incapitalreserve(Millionsof yen)Balance ofcapitalreserve(Millionsof yen)938,083,077－

462,817－

180,783(Note) The change in the total number of issued shares is due to the cancellation of treasury stock.
(5) Major shareholders
Not applicable.

10(6) Information on voting rights
Information on voting rights as of September 30, 2022 is stated in this item because the Company does not identify the
number of voting rights as of December 31, 2022 due to the lack of information on the number of the Company’s shares held by
the entity which the Company holds one quarter or more of total number of voting rights of such entity as of December 31, 2022.
1) Issued shares(As of September 30, 2022)
Classification

Number of voting
rightsNumber of shares (shares)

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

Description

－

－

－

－

－

－

－

－

－

－

－

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

Common stock

21,777,800

Shares with full voting right (others)

Common stock

944,512,500

Shares less than one unit

Common stock

2,281,577－－

968,571,877－－

Number of issued shares
Total number of voting rights

9,445,125

9,445,125－－－(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
those shares.
2) Treasury stock, etc.
(As of September 30, 2022)

Name ofshareholder

Hitachi, Ltd.

Address

Number ofshares held
under own name(shares)

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

Number ofshares held
under thenames ofothers(shares)

Total shares
held (shares)

Ownership
percentage tothe total
number ofissued shares(%)

21,744,600－

21,744,600

2.25

Aoyama Special SteelCo., Ltd.

9-11, Shinkawa 2-chome, Chuoku, Tokyo

2,100

－

2,100

0.00

SAITA KOUGYOU
CO., LTD.

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.

28-8, Honkomagome 2-chome,
Bunkyo-ku, Tokyo

3,000

－

3,000

0.00

21,777,800－

21,777,800

2.25

Total

－

2. Changes in Senior Management
There were no changes in senior managements from the filing date of the Annual Securities Report for the 153rd businessterm pursuant to the Financial Instruments and Exchange of Act of Japan to December 31, 2022

11

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.

12

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

Note

December 31, 2022

March 31, 2022

6
7

839,6082,568,812
1,762,698
272,453
1,187,829
306,414

968,827
2,978,149
2,042,432
376,315
233,708

6,937,814

6,599,431

485,007476,095
1,699,648
2,120,916
1,222,574
338,952

411,201
584,806
2,478,901
2,153,706
1,257,128
402,329

6,343,192

7,288,071

13,281,006

13,887,502

1,530,140
217,531
280,356
1,478,754
573,669
1,138,338
467,695
395,580

1,234,119
336,418
294,047
1,754,633
738,030
1,069,732
427,087

6,082,063

5,854,066

1,307,066
344,532
376,749

1,556,175
414,839
707,145

2,028,347

2,678,159

8,110,410

8,532,225

462,8173,260,488
804,355(3,490)461,731
46,1193,197,725
639,263(3,002)

4,524,170

4,341,836

646,426

1,013,441

8
5,9

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
8
5,13
5
10

Liabilities
Current liabilities
Short-term debt
Current portion of long-term debt
Other financial liabilities
Trade payables
Accrued expenses
Contract liabilities
Liabilities directly associated with assets held for sale
Other current liabilities
Total current liabilities

8
8

5,9

Non-current liabilities
Long-term debt
Retirement and severance benefits
Other non-current liabilities
Total non-current liabilities
Total liabilities8108

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

5,8
11

Non-controlling interests

5,8

Total equity

5,170,596

5,355,277

Total liabilities and equity

13,281,006

13,887,502

See accompanying notes to condensed quarterly consolidated financial statements.

F-1

Condensed Quarterly Consolidated Statement of Profit or Loss
Nine months ended December 31, 2022 and 2021

Millions of yen

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 before income taxes
Income taxes
Net income
Net income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests
Earnings per share attributable to Hitachi, Ltd. stockholders
Basic
Diluted

Note
12

5,13
5,10,1314
142022
8,108,796(6,123,921)
1,984,875(1,457,376)
71,658(152,309)
9,915(16,260)2021
7,346,665(5,532,216)
1,814,449(1,329,989)
100,377(31,127)
14,927(553)

34,01633,318474,519
17,637(35,337)
456,819(122,962)
333,857

601,402
11,364(19,510)593,256(81,015)
512,241

292,232
41,625

450,785
61,456306.99306.66

Yen
466.47465.8615

Condensed Quarterly Consolidated Statement of Comprehensive Income
Nine months ended December 31, 2022 and 2021

Millions of yen

Net income

Note

2022
333,8572021
512,241

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(17,131)
17,232641
742(15,528)(255)(15,783)

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

209,406
5,375
22,664
237,445

123,539
1,908
20,401
145,848

238,187
572,044130,065
642,306

481,233
90,811

556,799
85,507

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 December 31, 2022 and 2021

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 before income taxes
Income taxes
Net income
Net income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests
Earnings per share attributable to Hitachi, Ltd. stockholders
Basic
Diluted2022
2,692,017(2,022,364)
669,653(466,783)
469(21,198)
7,103(14,354)2021
2,514,000(1,884,836)
629,164(454,759)
367(15,092)
6,452
(105)

7,339

9,914

182,229
6,329(13,884)
174,674(41,663)
133,011

175,941
3,699(6,491)
173,149(25,322)
147,827

119,717
13,294

128,341
19,486127.48127.34Yen
132.80132.6315

Condensed Quarterly Consolidated Statement of Comprehensive Income
Three months ended December 31, 2022 and 2021

Millions of yen
Note

2022
133,0112021
147,827

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

1,126
70
1,196

(5,252)(23)(5,275)

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(343,067)
6,117(15,534)(352,484)

83,13029
4,416
87,575(351,288)(218,277)

82,300230,127(199,983)(18,294)

190,616
39,511

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
Nine months ended December 31, 2022

Millions of yen
2022
Total
Hitachi, Ltd.
stockholders’equityNoncontrollinginterests(note 5)

Total equity(3,002)

4,341,836

1,013,441

5,355,277(50,205)

-

-

-

-

292,232--

292,232

41,625

333,857-

189,001-

189,001

49,186238,187-(129,148)--(129,148)-(129,148)

-

-

-

-

-

-

(24,388)(24,388)

-

-

-

-

(200,160)(200,160)-(200,160)

-

(94)

-

-

255

161

-

161

Cancellation of treasury stock-(199,417)--

199,417---Issuance of new shares
Transfer to capital surplus fromretained earnings

1,086

1,086

-

-

-

2,172

-

2,172

-

150,526(150,526)

-

-

-

-

-

-

1,780

-

26,296-28,076(433,438)(405,362)

Total changes in equity

1,086(46,119)

62,763

165,092(488)

182,334(367,015)(184,681)

Balance at end of period

462,817-3,260,488

804,355(3,490)4,524,170

646,426

5,170,596

Commonstock

Capitalsurplus(note 5)Retainedearnings(note 11)

Accumulated
othercomprehensive
income461,731

46,1193,197,725

639,263

Reclassified into retained earnings--

50,205

Net income--

Other comprehensive income--

Dividends to Hitachi, Ltd. stockholders-

Dividends to non-controlling interests
Acquisition of treasury stock
Sales of treasury stock

Balance at beginning of period

Treasurystock,
at costChanges in equity

Changes in non-controlling interests

Nine months ended December 31, 2021

Millions of yen
2021
Total
Hitachi, Ltd.
stockholders’equityNoncontrollinginterests(note 8)

Total equity

3,525,502

932,730

4,458,232

Commonstock

Capitalsurplus(note 8)Retainedearnings(note 11)

Accumulated
othercomprehensive
income460,790

84,0402,710,604

273,561(3,493)

Reclassified into retained earnings

-

-

4,718

(4,718)

-

-

-

-

Net income--

450,785--

450,785

61,456512,241

Other comprehensive income

-

-

-

106,014-106,01424,051130,065

Dividends to Hitachi, Ltd. stockholders--(111,210)--(111,210)-(111,210)

Dividends to non-controlling interests

-

-

-

-

-

-

(45,756)(45,756)

Acquisition of treasury stock

-

-

-

-

(208)

(208)

-

(208)

Sales of treasury stock

-

(294)

-

-

739

445

-

445

Issuance of new shares

941

941

-

-

-

1,882

-

1,882

Balance at beginning of period

Treasurystock,
at costChanges in equity-(19,318)-(3,739)-(23,057)(21,252)(44,309)

Total changes in equity

Changes in non-controlling interests

941(18,671)344,293

97,557531

424,651

18,499443,150

Balance at end of period

461,731

65,3693,054,897

371,118(2,962)

3,950,153

951,229

4,901,382

See accompanying notes to condensed quarterly consolidated financial statements.

F-4

Condensed Quarterly Consolidated Statement of Cash Flows
Nine months ended December 31, 2022 and 2021

Millions of yen
Note

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

2022

2021

333,857

512,241

405,975
67,290122,962(34,016)
7,983(64,980)(5,369)126,910(368,518)(19,233)(103,782)
54,631(1,436)522,274
16,251
17,634(34,490)(141,579)
380,090

397,833
5,296
81,015(33,318)(1,755)(93,905)(5,367)
123,450(378,278)
47,330(109,374)(19,607)(52,217)473,344
11,967
12,253(19,901)(220,507)
257,156(196,643)(108,534)
48,935(208,002)(97,710)
48,224

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(36,873)(927,074)

151,352(3,514)(145,277)

115,157
41,677(1,027,728)

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

481,670
77,730(173,272)
310(129,102)(43,038)(200,160)
161(274,687)(469)(260,857)

1,104,163
38,165(248,983)(111,232)(50,590)(208)
445(21,607)(21)
710,132

16,516(9,528)34,756(25,684)

968,827
959,299

1,015,886
990,202

Effect of exchange rate changes on cash and cash equivalents
Change in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

6

See accompanying notes to condensed quarterly consolidated financial statements.

F-5

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
(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 nine months ended December 31, 2022
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 seven segments consisting of Digital
Systems & Services, Green Energy & Mobility, Connective Industries, 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, 2022.
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, 2022.

F-6

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
(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, 2022.
Income taxes for the nine months ended December 31, 2022 are computed using the estimated annual effective tax rate.

F-7

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
(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 seven reportable segments, corresponding to categories of activities classified primarily by
the similarities for the nature of markets, products and services, and economic characteristics. Several operating segments areaggregated into Green Energy & Mobility and Connective Industries 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 based on the similarities of economic characteristics mainly using the segment profit (loss) margin ratio of operating
segments. The primary products and services included in each segment are as follows:
Digital Systems & Services:
Digital solutions (System integration, Consulting, Cloud services), IT products (Storage, Servers), Software, and ATMs
Green Energy & Mobility:
Energy solutions (Power grid, Renewable energy, Nuclear), and Railway systems
Connective Industries:
Building systems (Elevators, Escalators), Smart life & ecofriendly systems (Home appliances, Air conditioners), Measurement andanalytical systems (Medical and Bio, Semiconductor, Industry), Industry & distribution solutions, Water & environment solutions,and Industrial machinery
Automotive Systems:
Powertrain, Chassis, Advanced driver assistance, and Motorcycle systems
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
Effective from April 1, 2022, the Company changed its business structure in order to realize further evolution and growth of theSocial Innovation Business and aims to realize a sustainable society. Accordingly, the Company reclassified its reportable segments
in seven segments as Digital Systems & Services, Green Energy & Mobility, Connective Industries, Automotive Systems, Hitachi
Construction Machinery, Hitachi Metals, and Others. Figures for the nine months ended December 31, 2021 have been restated on
the basis of the reclassification.
In August 2022, the Company sold a certain number of shares of Hitachi Construction Machinery Co., Ltd. (Hitachi Construction
Machinery). As a result, Hitachi Construction Machinery and its subsidiaries, which were included in the Hitachi Construction
Machinery segment, became the equity-method associates of the Company. Accordingly, the Hitachi Construction Machinery
segment ceased to be a business segment, and from the second quarter of this fiscal year, the Company includes its share of profits(losses) of investments accounted for using the equity method of Hitachi Construction Machinery and its subsidiaries after thetransfer of shares in Corporate items and Eliminations.
In addition, from the year ending March 31, 2023, segment profit (loss), previously presented based on EBIT, is changed andpresented on an Adjusted EBITA basis, as a measure of profit (loss) used by the chief operating decision maker mainly in deciding
how to allocate resources and in assessing performance.

F-8

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
The following tables show business segment information for the nine months ended December 31, 2022 and 2021.
Millions of yen
2022
Segment
Green Energy
Connective& Mobility
Industries

Digital Systems& Services
Revenues
Revenues from External Customers
Revenues from Intersegment Transactions
Total Revenues
Segment Profit (Loss)

1,555,957
122,082
1,678,039
188,321

1,683,733
39,9781,723,711
91,990Automotive
Systems

2,023,418
146,960
2,170,378
227,407

1,373,442
3,773
1,377,215
39,868Millions of yen

2022
Segment
HitachiConstruction
Machinery
Revenues
Revenues from External Customers
Revenues from Intersegment Transactions
Total Revenues
Segment Profit (Loss)

Hitachi
MetalsOthersSubtotal

Corporate
items andEliminations

825,588
22,138
847,726
43,054

162,314
170,622332,936
9,479

8,098,620
506,4998,605,119
643,345

10,176(506,499)(496,323)(19,112)474,168946
475,11443,226

Total

8,108,796
8,108,796
624,233
Millions of yen

2021
Segment
Green Energy
Connective& Mobility
Industries

Digital Systems& Services
Revenues
Revenues from External Customers
Revenues from Intersegment Transactions
Total Revenues
Segment Profit (Loss)

1,380,135
115,291
1,495,426
179,790

1,426,487
38,582
1,465,069
55,053

Automotive
Systems

1,842,133
156,439
1,998,572
185,945

1,146,744
4,596
1,151,340
37,331Millions of yen

2021
Segment
HitachiConstruction
Machinery
Revenues
Revenues from External Customers
Revenues from Intersegment Transactions
Total Revenues
Segment Profit (Loss)

718,775
1,591
720,366
68,176

Hitachi
MetalsOthersSubtotal

Corporate
items andEliminations

669,983
20,866
690,849
23,478155,135
168,183
323,318
15,4287,339,392
505,548
7,844,940
565,201

7,273(505,548)(498,275)
10,002

Total

7,346,665
7,346,665
575,203

Segment profit (loss) is measured by Adjusted EBITA. Adjusted EBITA is defined as Adjusted Earnings before Interest, Taxes andAmortization. Adjusted EBITA represents profit (loss) calculated by deducting selling, general and administrative expenses fromgross profit, adding back amortization of intangible assets, etc. recognized upon business combinations, and adding or deducting
share of profits (losses) of investments accounted for using the equity method.
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 business reorganization and share of profits (losses) of investments accounted for using the equity method, and others.

F-9

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
Adjustments to income before income taxes from segment profit are as follows.
Millions of yen
2022
Segment Profit (Loss)
Amortization of Intangible assets, etc.
recognized upon business combinations
Other income
Other expenses
Financial income
Financial expenses
EBIT (Earnings before interest and taxes)
Interest income
Interest charges
Income before income taxes

F-10

2021
624,233

575,203(62,718)(57,425)

71,658(152,309)
9,915(16,260)
474,519
17,637(35,337)
456,819

100,377(31,127)
14,927(553)
601,402
11,364(19,510)593,256

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
(5) Business Acquisitions and Divestitures
The following are the main Business Acquisitions and Divestitures for the nine months ended December 31, 2022, including theperiod up to the approval date of the condensed quarterly consolidated financial statements.
(a) Sale of all shares of Hitachi Transport System, Ltd. (Hitachi Transport System)
On April 28, 2022, the Company entered into an agreement regarding the following three points, etc. for the common stocks of
Hitachi Transport System (Hitachi Transport System Shares), an equity method associate of the Company in Corporate items ofsegment information, with HTSK Co., Ltd. (Offeror), a wholly owned subsidiary of HTSK Holdings Co., Ltd. (Offeror Parent),
all equity interests which are currently owned by HTSK Investment L.P., which is indirectly held and operated by Kohlberg
Kravis Roberts & Co. L.P.
(i) Offeror will launch a tender offer (Tender Offer) for Hitachi Transport System Shares and the Company will not tender anyof its shares of Hitachi Transport System (Shares to Be Sold by the Company) in Tender Offer.
(ii) The Company will sell Shares to Be Sold by the Company in accordance with the share repurchase to be conducted by
Hitachi Transport System.
(iii) The Company obtains 10.0 billion yen worth of Offeror Parent’s shares with voting rights (equivalent to 10% of the total
voting rights).
Offeror commenced Tender Offer on October 28, 2022, and Tender Offer was completed on November 29, 2022.
The Company’s consideration is expected to be approximately 222.0 billion yen.
Assuming the transaction is settled, Hitachi Transport System will be no longer the Company’s equity method associate. An
expected gain on the sale of Hitachi Transport System Shares in the amount of approximately 140.0 billion yen will berecognized in Other income in the consolidated statement of profit or loss for the year ending March 31, 2023.
The Company classified investments in Hitachi Transport System as held for sale as of December 31, 2022. Details of the assets
held for sale are described in note 9.

F-11

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022(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 byinvestment 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 commencementof 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 asa result of Share Repurchase.
Tender Offeror commenced Tender Offer on September 27, 2022, and Tender Offer was completed on October 25, 2022.
Following the completion of Tender Offer, the above related transactions, such as Share Consolidation of Hitachi Metals shares,
took place and Shares to Be Sold by the Company were transferred on January 5, 2023. The Company’s consideration was
382,042 million yen.
As a result the transaction was settled. The Company’s ownership ratio of Hitachi Metals Shares decreased from 53.4% to 0%,
and Hitachi Metals was deconsolidated. An expected gain on the sale of Hitachi Metals Shares in the amount of approximately
95.0 billion yen will be recognized in Other income in the consolidated statement of profit or loss for the year ending March 31,
2023. Furthermore, non-controlling interest in Hitachi Metals will decrease approximately 272.0 billion yen in the consolidated
statement of changes in equity for the year ending March 31, 2023.
The Company classified assets and liabilities held by Hitachi Metals as held for sale as of December 31, 2022. Details of theassets held for sale are described in note 9.
On January 4, 2023, Hitachi Metals changed its name to Proterial, Ltd.
(c) Additional acquisition of shares of Hitachi Energy Ltd (Hitachi Energy)
On September 30, 2022, the Company signed an agreement with ABB Ltd (ABB) to acquire the remaining 19.9% of the sharesof Hitachi Energy, a consolidated subsidiary of the Company in the Green Energy & Mobility segment, owned by ABB by
exercising a call option, owned by the Company.
As a result of the additional acquisition of shares on December 28, 2022, the Company’s ownership ratio of shares of Hitachi
Energy increased from 80.1% to 100% and Hitachi Energy has become a wholly owned subsidiary of the Company. The
consideration was 1,679 million U.S. dollars (243,200 million yen).
The Company derecognized the non-controlling interests and recognized the difference between the consideration and noncontrolling interests in capital surplus.

F-12

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022(d) Sale of shares of Hitachi Construction Machinery Co., Ltd. (Hitachi Construction Machinery)
On January 14, 2022, the Company entered into an agreement regarding the transfer of a part of the shares of Hitachi
Construction Machinery, a consolidated subsidiary of the Company in the Hitachi Construction Machinery segment, with HCJI
Holdings G.K., a special purpose company which is jointly invested by HCJ Holdings Ltd., a special purpose company wholly
owned by a fund that Japan Industrial Partners, Inc. manages, operates, and provides information, and Citrus Investment LLC, aspecial purpose company wholly owned by ITOCHU Corporation. In accordance with this agreement, a certain number ofshares of Hitachi Construction Machinery common stocks owned by the Company were transferred to HCJI Holdings G.K., on
August 23, 2022.
As a result of this transfer of shares, the Company’s ownership ratio of shares of Hitachi Construction Machinery decreased
from 51.4% to 25.4%, and Hitachi Construction Machinery turned into an equity-method associate of the Company. The
Company’s consideration was 182,457 million yen.
A gain on the sale of Hitachi Construction Machinery shares in the amount of 39,211 million yen was recognized in Other
income in the condensed quarterly consolidated statement of profit or loss for the nine months ended December 31, 2022.
Furthermore, changes in non-controlling interests in the condensed quarterly consolidated statement of changes in equity
include derecognition of non-controlling interest in Hitachi Construction Machinery as a result of its deconsolidation.
The following table shows the assets, liabilities, and equity of Hitachi Construction Machinery as of March 31, 2022.
Millions of yen
87,583
237,792368,267
62,193
8,421
764,256
26,662
63,197442,904
55,36758,967
29,321
676,418
1,440,674

Cash and cash equivalents
Trade receivables and contract assets
Inventories
Investments in securities and other financial assets
Other current assets
Total 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
Short-term debt
Current portion of long-term debt
Other financial liabilities
Trade payables
Accrued expenses
Contract liabilities
Other current liabilities
Total current liabilities
Long-term debt
Retirement and severance benefits
Other non-current liabilities
Total non-current liabilities
Total liabilities

103,320
81,731
51,239144,531
37,965
9,967
24,893453,646
229,487
17,62250,607
297,716
751,362

Total Hitachi, Ltd. stockholders’ equity
Non-controlling interests
Total equity
Total liabilities and equity

318,069
371,243689,3121,440,674

F-13

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
The following are the main Business Acquisitions and Divestitures for the nine months ended December 31, 2021.
(a) 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 amounts of the assets 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

822,173
231,130
1,101,976

Current liabilities
Non-current liabilities
Total

134,272
45,454
179,726

Cash paid for the acquisition

922,250

The goodwill mainly comprises excess earning power and expected synergies arising from the acquisition.
Other intangible assets include the intangible asset representing customer relationships in the amount of 227,424 million yen.
The intangible asset representing customer relationships is measured based on assumptions such as revenue growth rates,
EBITDA ratios, revenue growth rate for existing customers, attrition rate of existing customers, and discount rate.
Acquisition related costs included in Other expenses in the condensed quarterly consolidated statement of profit or loss for thenine months ended December 31, 2021 were 3,874 million yen.
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 December 31, 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 the nine months
ended December 31, 2021.
On April 1, 2022, HGDH changed its name to Hitachi Digital LLC.

F-14

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022(b) 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 theConnective Industries segment, and Arçelik A.S. (Arçelik) signed a share purchase agreement to establish a new joint venturecompany.
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.
The following is a material Business Acquisition other than the above.
(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 Green Energy & Mobility
segment, signed an agreement with Thales S.A.(Thales) to acquire the ground transportation systems business in order toexpand the rail signalling systems business globally. Based on the agreement, Hitachi Rail will acquire Thales’ groundtransportation systems business which will be carved out from Thales. The transaction is subject to the usual conditions
including regulatory and antitrust clearances and is expected to be completed by the second half of 2023. Hitachi Rail agreed onan enterprise value of 1,660 million euro (approximately 234.8 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.

F-15

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
(6) Cash and Cash Equivalents
The reconciliation of the amount of cash and cash equivalents between condensed quarterly consolidated statement of financial
position and condensed quarterly consolidated statement of cash flows is as follows.
Millions of yen
December 31, 2022
Cash and cash equivalents in the condensed quarterly consolidated statement of financial position

839,608

Cash and cash equivalents included in assets held for sale

119,691

Cash and cash equivalents in the condensed quarterly consolidated statement of cash flows

959,299

F-16

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
(7) Trade Receivables and Contract Assets
The components of trade receivables and contract assets are as follows:
Millions of yen
December 31, 2022
Accounts receivable

March 31, 2022

1,658,523

2,210,590

Contract assets

807,189623,766

Others103,100

143,793

Total

2,568,812

2,978,149

Trade receivables and contract assets are stated as net of the allowance for doubtful receivables.
Others include notes receivable and electronically recorded monetary claims.
(8) 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.
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
for investment 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-17

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022(b) Financial Instruments Measured at Amortized Cost
The carrying amounts and estimated fair values of the financial instruments measured at amortized cost as of December 31 andMarch 31, 2022 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
December 31, 2022
Carrying amounts

March 31, 2022

Estimated
fair values

Carrying amounts

Estimated
fair values

AssetsInvestments in securities and otherfinancial assets
Lease receivables

24,46924,46970,22771,648Debt securities

47,46747,46755,05755,058

414

414

1,650

1,650

Long-term loans receivable
Liabilities
Long-term debt [1]BondsLong-term borrowings

250,000

247,331357,548

357,468

1,019,012

1,015,850

1,207,825

1,207,727[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-18Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
The following tables present the assets and liabilities that are measured at fair value on a recurring basis as of December 31 andMarch 31, 2022.
December 31, 2022
Class of financial instruments

Millions of yen
Level 1

Level 2

Level 3

Total

Financial assets measured at fair value
through profit or loss:
Investments in securities and otherfinancial assets
Equity securities

400-

28,27828,678Debt securities

8,430

3,942

4,949

17,321-

79,692-

79,692Derivatives
Financial assets measured at fair value
through other comprehensive income:Investments in securities and otherfinancial assets
Equity securities
Total financial assets at fair value

218,009-

94,313

312,322226,839

83,634

127,540

438,013-54,097-54,097-54,097-54,097

Financial liabilities measured at fair value
through profit or loss:
Other financial liabilities
Derivatives
Total financial liabilities at fair value
March 31, 2022
Class of financial instruments

Millions of yen
Level 1

Level 2

Level 3

Total

Financial assets measured at fair value
through profit or loss:
Investments in securities and otherfinancial assets
Equity securities

1,364

Debt securities
Derivatives-

17,591

18,955

9,521

4,692

5,686

19,899-63,596-

63,596

282,0252,144

106,041

390,210

292,91070,432

129,318

492,660-

47,145-47,145-47,145-47,145

Financial assets measured at fair value
through other comprehensive income:Investments in securities and otherfinancial assets
Equity securities
Total financial assets at fair value
Financial liabilities measured at fair value
through profit or loss:
Other financial liabilities
Derivatives
Total financial liabilities at fair value

F-19

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
The following tables present the changes in Level 3 instruments measured on a recurring basis for the nine months ended
December 31, 2022 and 2021.
December 31, 2022
Level 3 financial assets
Balance at beginning of period
Gain in profit or loss [1]Loss in OCI [2]Purchases
Sales and redemption
Acquisitions and divestitures
Other [4]Balance at end of period
Unrealized gain relating tofinancial assets held at end of period [5]Millions of yen
Equitysecurities

Debt
securities

Derivatives

Total

123,632
2,803(12,112)
20,407(1,102)(8,175)(2,862)
122,591

5,686
94
514
(506)
(547)
(292)
4,949

-

129,318
2,897(12,112)
20,921(1,608)(8,722)(3,154)
127,540

2,792

94

-

2,886

December 31, 2021
Level 3 financial assets
Balance at beginning of period
Gain 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 [5]Millions of yen
Equitysecurities

Debt
securities

Derivatives

Total

120,718
2,269(1,803)
9,218(5,504)(25)(1,278)(86)
123,509

6,054
105
564
(871)
(229)
3
5,626

87
4
91

126,859
2,378(1,803)
9,782(6,375)(254)(1,278)(83)
129,226

2,236

120

4

2,360

[1] Gain in profit or loss related to Financial assets measured at fair value through profit or loss is included in Financial income inthe condensed quarterly consolidated statement of profit or loss.
[2] Loss in OCI related to Financial assets measured at fair value through other comprehensive income is included in Net changes
in financial assets measured at fair value through other comprehensive income 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] The amount of Hitachi Metals' assets reclassified to Assets held for sale is included in Other.
[5] Unrealized gain relating to Financial assets measured at fair value through profit or loss held at the end of period is includedin Financial income 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 the Company and its subsidiaries are measured at the present value of the exercise
price. The carrying amount of the put options above as of March 31, 2022 was 268,851 million yen included in Other non-current
liabilities in the condensed quarterly consolidated statement of financial position.

F-20

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
(9) Assets Held for Sale
The Company classified assets or disposal groups as held for sale if the assets are available for immediate sale in their present
condition and the sale is highly probable within one year. Assets or disposal groups classified as held for sale are measured at thelower of their carrying amount and fair value less costs to sell.
The Company mainly classified assets and liabilities held by Hitachi Metals and investments in Hitachi Transport System as held
for sale as of December 31, 2022. Details of these transactions are described in note 5.
The following table is breakdown of the assets held for sale and liabilities directly associated with assets held for sale as ofDecember 31, 2022.
Millions of yen
December 31, 2022
Assets held for sale
Cash and cash equivalents
Trade receivables and contract assets
Inventories
Other current assets
Investments accounted for using the equity method
Property, plant and equipment
Goodwill
Other non-current assets
Total
Liabilities directly associated with assets held for sale
Trade payables
Other current liabilities
Non-current liabilities
Total

119,691
177,250
255,292
34,892
99,409338,700
102,895
59,7001,187,829
193,164
149,228
125,303467,695

F-21

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
(10) Employee Benefits(Revision of defined benefit pension plan)
Since the Company and a consolidated subsidiary of the Company introduced a risk-sharing corporate pension plan on April 1,
2019, for current employees participating in the defined benefit pension plan managed by the Hitachi Pension Fund, the same has
been promoted to the other subsidiaries that participate in pension plan managed by the Hitachi Pension Fund. On April 1, 2022,
newly 43 subsidiaries have changed their pension plans for current employees from defined benefit pension plan to risk-sharing
corporate pension plan, and now the revision of Hitachi group pension plan managed by the Hitachi Pension Fund has been almost
completed.
Under this plan, a risk reserve contribution is determined in advance in accordance with the rules governing the plan, and thepension benefits are adjusted annually based on the financial position of the plan to maintain balanced finance.
In terms of the corresponding accounting treatment for retirement benefits, risk-sharing corporate pension plan, for which an entity
accepts contribution obligations to the extent stipulated in the rules but has no further obligations to make any additional
contributions, are classified as defined contribution plan. Since the risk-sharing corporate pension plan, which subsidiaries
introduced on April 1, 2022, impose no additional contribution obligations, at the time of the shift to the revised plan, thedifference between the defined benefit obligations related to the portion transferred to the revised plan and the amount of assets
transferred to the revised plan corresponding to the decrease in defined benefit obligations, 51,185 million yen, was recognized as asettlement loss in Other expenses in the condensed quarterly consolidated statement of profit or loss. And in the condensed
quarterly consolidated statement of financial position, Other non-current assets decreased by 49,334 million yen, and Retirement
and severance benefits increased by 1,851 million yen, respectively. Excluding the settlement loss in above, the impacts ofchanging pension plans on profit or loss for the fiscal year ending March 31, 2023 are not material.

F-22

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022(11) Dividends
Dividends paid on the Company’s common stock for the nine months ended December 31, 2022 are as follows:

Decision

Cash dividends(millions of yen)

Appropriation
fromCash dividends
per share (yen)Record date

Effective date

March 31, 2022

June 2, 2022

The Board of Directors
on May 13, 2022

62,870Retained earnings

65.0

The Board of Directors
on October 28, 2022

66,277Retained earnings

70.0 September 30, 2022 November 29, 2022

Dividends paid on the Company’s common stock for the nine months ended December 31, 2021 are as follows:

Decision
The Board of Directors
on May 12, 2021
The Board of Directors
on October 27, 2021

Cash dividends

Appropriation

Cash dividends(millions of yen)fromper share (yen)Record date

Effective date

March 31, 2021

June 2, 2021

53,175Retained earnings

55.0

58,035Retained earnings

60.0 September 30, 2021 November 29, 2021

F-23

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022(12) 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, 2022, the Company reclassified its reportable segments. Accordingly, figures for the nine months ended
December 31, 2021 have been restated on the basis of the reclassification. Details of the reclassification are described in note 4.
Millions of yen
December 31, 2022
Overseas
Revenues
Subtotal

Total
Revenues

38,612622,750

1,678,039

590,459

241,020

1,463,835

1,723,711

196,427

150,350

27,643

1,173,656

2,170,378

526,279

315,487

110,571

83,995

1,036,332

1,377,215

80,64083,04094,67180,460136,303

394,474

475,114

Hitachi Metals

323,193

181,280

283,606

41,547

18,100524,533

847,726

Others276,242

42,999

4,612

6,314

2,769

56,694

332,936

Subtotal

3,332,845

2,121,426

1,460,064

1,142,342

548,442

5,272,274

8,605,119

Corporate items and Eliminations(459,668)(28,446)(1,747)(6,040)(422)(36,655)(496,323)

Total

2,873,177

2,092,980

1,458,317

1,136,302

548,020

5,235,619

8,108,796

Japan

Asia

North
America

Europe

Other
Areas

Digital Systems & Services

1,055,289

180,415

241,082

162,641

Green Energy & Mobility

259,876

308,177

324,179

Connective Industries

996,722799,236

Automotive Systems

340,883

Hitachi Construction Machinery

Millions of yen
December 31, 2021
Overseas
Revenues
Subtotal

Total
Revenues

31,811

448,858

1,495,426

481,352

174,592

1,198,781

1,465,069

148,658

96,80449,264

1,012,723

1,998,572

439,561

226,380

94,02665,707

825,674

1,151,340

154,758

135,633

136,201

112,654

181,120565,608

720,366

Hitachi Metals

298,803150,662

197,322

30,63013,432392,046

690,849

Others269,406

41,231

4,123

6,197

2,361

53,912

323,318

Subtotal

3,347,338

1,920,486

1,112,264

946,565

518,287

4,497,602

7,844,940

Corporate items and Eliminations(463,516)(24,591)(3,396)(5,182)(1,590)(34,759)(498,275)

Total

2,883,822

1,895,895

1,108,868

941,383

516,697

4,462,843

7,346,665

Japan

Asia

North
America

Europe

Other
Areas

Digital Systems & Services

1,046,568

132,253

159,892

124,902

Green Energy & Mobility

266,288

303,149

239,688

Connective Industries

985,849

717,997

Automotive Systems

325,666

Hitachi Construction Machinery

The Digital Systems & Services segment consists of Front Business, IT Services, and Services & Platforms, for which revenue
amounted to 665,453 million yen, 630,540 million yen and 688,992 million yen for the nine months ended December 31, 2022
and 638,496 million yen, 597,534 million yen and 555,781 million yen for the nine months ended December 31, 2021,
respectively (including intersegment transactions). Front Business and IT Services are operated mainly in Japan, and Services &Platforms is operated mainly in Japan, North America and Europe.

F-24Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
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 nine months ended December 31, 2022 and 2021, the amount of revenue recognized based on
the pattern of the cost accrual arising from long-term projects were 1,240,892 million yen and 1,108,452 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 eachreportable segment.
(Digital Systems & Services)
Front Business and IT Services primarily provide goods and services such as system integration, consulting and cloud service.
Services & Platforms primarily provides IT products and software.
These long-term projects in system integration, consulting and cloud service businesses provide goods and services according
to customers’ specifications over a specified period of time, and revenue is recognized mainly based on the pattern of the costaccrual (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 somecases, payments are made before performance obligations are satisfied.
In IT products and software businesses, 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 upon delivery of the goods. Mostly, payment
terms stipulate that the consideration is received within one year after the performance obligation is satisfied, and there are no
significant transactions in which payment terms include deferred payments, etc.
(Green Energy & Mobility and Connective Industries)
The Green Energy & Mobility segment includes revenue from businesses such as energy solutions and railway systems. Theenergy solutions business is operated mainly in Asia, North America, and Europe. The railway systems business is operated
mainly in Europe. The Connective Industries segment includes revenue from businesses such as building systems, smart life
& ecofriendly systems, measurement and analytical systems, and industry & distribution solutions. The building systems
business is operated mainly in China, the smart life & ecofriendly systems business is operated mainly in Japan, themeasurement and analytical systems business is operated mainly in Japan, Asia, North America, and Europe, and the industry& distribution solutions business is operated mainly in Japan.
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 performanceobligations are satisfied.
Further, in the sale of elevators, home appliances, measurement and analytical systems, industrial equipment, etc. included in
the Connective Industries segment, 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 upon delivery of the goods. Mostly, payment
terms stipulate that the consideration is received within one year after the performance obligation is satisfied, and there are no
significant transactions in which payment terms include deferred payments, etc.
(Other)In the Automotive Systems, Hitachi Construction Machinery, and Hitachi Metals segments, performance obligations are
generally satisfied at a point in time upon completion or upon delivery of the goods, and revenue is recognized when control
over goods is transferred to customers. Mostly, payment terms stipulate that the consideration is received within one year after
the performance obligation is satisfied, and there are no significant transactions in which payment terms include deferredpayments, 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. Mostly, payment terms stipulate that theconsideration is received within one year after the performance obligation is satisfied, and there are no significant transactions
in which payment terms include deferred payments, etc.

F-25

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
(13) Other Income and Expenses
The main components of other income and expenses for the nine months ended December 31, 2022 and 2021 are as follows:
Millions of yen
2022
Net gain (loss) on sales and disposals of fixed assets

2021
5,204

5,124

Impairment losses(67,290)(5,296)

Net gain (loss) on business reorganization and others

64,98093,905Special termination benefits(3,901)(3,827)

Impairment losses are mainly recognized on property, plant and equipment, goodwill and other intangible assets. Net gain (loss) on
business reorganization and others includes gains and losses related to obtaining and losing control of investees and gains and losses
related to obtaining and losing significant influence over investees.
Restructuring charges (structural reform expenses) included in Other expenses for the nine months ended December 31, 2022 and2021 were 71,191 million yen and 9,123 million yen, respectively. Restructuring charges (structural reform expenses) include
impairment losses and special termination benefits. In addition, the settlement loss of 51,185 million yen recognized for the ninemonths ended December 31, 2022 due to the change to the risk-sharing corporate pension plan introduced by subsidiaries on April 1,
2022, is included in Other expenses for the nine months ended December 31, 2022. Details of this transaction are described in note
10.
Impairment losses for the nine months ended December 31, 2022 include 38,446 million yen in the Green Energy & Mobility
segment, mainly consisting of 38,394 million yen in impairment losses on goodwill in the power grids business due to the rise indiscount rate following the significant rise in interest rates, etc. The recoverable amount was determined on the basis of value in use,which was measured at 10,600 million U.S. dollars (1,534,986 million yen) as of September 30, 2022, the date on which impairment
losses were recognized. The value in use was discounted at 13.2% (before tax), which was derived from the weighted average costof capital.
(14) Financial Income and Expenses
The main components of financial income and expenses for the nine months ended December 31, 2022 and 2021 are as follows:
Millions of yen
2022

2021

Dividends received

7,791

5,771

Exchange gain (loss)(9,388)

4,929

Dividends received for the nine months ended December 31, 2022 and 2021 are from financial assets measured at fair value throughother comprehensive income.

F-26

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
(15) Earnings Per Share (EPS) Information
The calculations of basic and diluted EPS attributable to Hitachi, Ltd. stockholders for the nine months ended December 31, 2022
and 2021 are as follows:
Nine months ended December 31
Number of shares
2022
Weighted average number of shares on which basic EPS is calculated

2021

951,926,474

966,384,756

Stock options

417,340

516,398

Restricted stock

560,466

713,890

Restricted stock units

35,72735,737

952,940,007

967,650,781

Effect of dilutive securities

Number of shares on which diluted EPS is calculated

Millions of yen
2022

2021

Net income attributable to Hitachi, Ltd. stockholders
Basic
Effect of dilutive securities
Diluted292,232

450,785--

292,232

450,785
Yen

2022

2021

EPS attributable to Hitachi, Ltd. stockholders
Basic306.99466.47

Diluted306.66465.86F-27

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
The calculations of basic and diluted EPS attributable to Hitachi, Ltd. stockholders for the three months ended December 31, 2022
and 2021 are as follows:
Three months ended December 31
Number of shares
2022
Weighted average number of shares on which basic EPS is calculated

2021

939,139,584

966,451,638

Stock options

417,340

499,000

Restricted stock

525,766

671,546

Restricted stock units

24,216

29,052

940,106,906

967,651,236

Effect of dilutive securities

Number of shares on which diluted EPS is calculated

Millions of yen
2022

2021

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

119,717

128,341--

119,717

128,341
Yen

2022

2021

EPS attributable to Hitachi, Ltd. stockholders
Basic127.48132.80

Diluted127.34132.63F-28

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2022
(16) 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. The compensation claim against these three companies was amended to approximately 51.0 billion yen in July
2018 and to approximately 50.5 billion yen in September 2022 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 (37,213 million yen) and interest allegedly incurred by performance defects of apower plant. As of December 31, 2022, the amount of compensation claimed by the customer was changed to 270 million euro(38,202 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.
(17) Approval of Condensed Quarterly Consolidated Financial Statements
The condensed quarterly consolidated financial statements were approved on February 9, 2023 by Keiji Kojima, President andCEO of the Company.

F-29

[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
February 9, 2023
Kabushiki Kaisha Hitachi Seisakusho
Hitachi, Ltd.
Keiji Kojima, President & CEO
Yoshihiko Kawamura, Executive 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 & CEO, and Mr. Yoshihiko Kawamura, Executive Vice President and Executive Officer,
confirmed that statements contained in the Quarterly Report for the third quarter of the 154th fiscal year (from October 1, 2022 to
December 31, 2022) were adequate under the Financial Instruments and Exchange Act.
2. Special Notes
None.

A-2