[Translation]

Quarterly Report(The Second Quarter of 147th Business Term)
From July 1, 2015 to September 30, 2015

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

Hitachi, Ltd.

[Cover][Document Filed]

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

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

Director, Kanto Local Finance Bureau[Filing Date]

November 12, 2015

[Fiscal Year]

The Second Quarter of 147th Business Term (from July 1, 2015 to September 30, 2015)[Company Name]

Kabushiki Kaisha Hitachi Seisakusho[Company Name in English] Hitachi, Ltd.
[Title and Name ofToshiaki Higashihara, President & COO

Representative][Address of Head Office]6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo[Phone No.]

03-3258-1111[Contact Person]

Taro Kaiho, Manager, Legal Division[Contact Address]

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

03-3258-1111[Contact Person]

Taro Kaiho, Manager, Legal Division[Place Where Available forTokyo Stock Exchange, Inc.

Public Inspection](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
have truncated amounts of less than one million or one hundred million, as the case may be. Accordingly, the total of figures
presented in columns or otherwise may not equal the total of the individual items. We have rounded all percentages to thenearest percent, one-tenth 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 andExchange Act of Japan and other laws and regulations amending and/or supplementing the Financial Instruments andExchange 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 .............................................................................................................................. 1
II. Business Overview ............................................................................................................................................. 2
1. Risk Factors................................................................................................................................................. 2
2. Material Agreements, etc. ........................................................................................................................... 2
3. Analyses of Consolidated Financial Condition, Operating Results and Cash Flows ................................. 2
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) Information on shareholder right plans ................................................................................................ 10(5) Changes in the total number of issued shares and the amount of common stock and other ................ 10(6) Major shareholders ............................................................................................................................... 11(7) Information on voting rights................................................................................................................. 12
2. Changes in Senior Management ............................................................................................................... 12
IV. Financial Information ..................................................................................................................................... 13
Part II Information on Guarantors, etc. for the Company .......................................................................................... 13[Condensed Quarterly Consolidated Financial Statements] ........................................................................................F-1[Confirmation Letter] .................................................................................................................................................. A-1

Part I Information on the Company
I. Overview of the Company
1. Key Financial Data
Consolidated financial data, etc.

Revenues(Millions of yen, unless otherwise stated)
Six months ended Six months ended
Year ended
September 30, 2014 September 30, 2015 March 31, 2015
4,552,076
4,806,888
9,774,930[2,388,065][2,492,865]

Income from continuing operations, before
income taxes
Net income attributable to Hitachi, Ltd.
stockholders
Comprehensive income attributable to Hitachi, Ltd.
stockholders

258,219

254,693518,994

117,631[75,767]

97,591[42,633]

217,482

152,320

30,621

337,578

Total Hitachi, Ltd. stockholders’ equity

2,791,297

2,942,965

2,942,281

Total equity

4,068,233

4,317,460

4,296,342

Total assets

11,514,463

12,354,327

12,433,727

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

24.36[15.69]20.21[8.83]

45.04

24.34

20.19

45.00

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

24.2

23.8

23.7

Net cash provided by operating activities

178,555

309,588451,825

Net cash used in investing activities(268,591)(332,480)(612,545)

Net cash provided by financing activities

151,301

37,414233,206

Cash and cash equivalents at end of period

650,224

695,141

701,703(Notes)

1. Our consolidated financial statements have been prepared in conformity with the International
Financial Report Standards (“IFRS”) as issued by the International Accounting Standards Board.
2. Revenues do not include the consumption tax, etc.
3. A part of the thermal power generation systems business is classified as a discontinued operationin accordance with the provision of IFRS 5 “Non-current Assets Held for Sale and Discontinued
Operations,” which was not transferred to MITSUBISHI HITACHI POWER SYSTEMS, LTD. forthe business integration in the thermal power generation systems with Mitsubishi Heavy Industries,
Ltd. The results of the discontinued operation are reported separately from continuing operations.
4. 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 threemonths ended September 30, 2014 and 2015, respectively.

2. Description of Business
There were no material changes in principal businesses of Hitachi during the six months ended September
30, 2015. The Hitachi Group is comprised of the Company, 1,032 consolidated subsidiaries, and 252
equity-method associates and joint-ventures. Consolidated trust accounts are not included in the number ofconsolidated subsidiaries.

1Changes of businesses in each segment and principal affiliated companies during the six months ended
September 30, 2015 were as follows.
Positioning of principal affiliated companies
Manufacturing
Sales and services(Reclassified its segment)
Social Infrastructure & Industrial Systems (Reclassified its segment)[Consolidated subsidiaries][Consolidated subsidiaries](Reclassified its segment)
Hitachi Power Solutions Co., Ltd.
Hitachi-GE Nuclear Energy, Ltd.
Thermal, Nuclear and Renewable
Horizon Nuclear Power Limited[Equity-method associates]
Energy Power Generation Systems,
MITSUBISHI HITACHI POWER
Transmission & Distribution Systems
SYSTEMS, LTD.
(Note) Effective from April 1, 2015, the Power Systems segment was abolished and the businesses previously constituting
this segment have been integrated into the Social Infrastructure & Industrial Systems segment.
Segment

II. Business Overview
1. Risk Factors
There were no new risk factors recognized during the six months ended September 30, 2015.
There were no material changes in the risk factors stated in the Annual Securities Report for the 146thbusiness term pursuant to the Financial Instruments and Exchange Act of Japan.
2. Material Agreements, etc.
Absorption-type Merger
On July 21, 2015, the Company decided that it would conduct absorption-type mergers of Hitachi Medical
Corporation ("Hitachi Medical") and Hitachi Aloka Medical, Ltd. (“Hitachi Aloka Medical”) (the “Merger”) on
April 1, 2016. The Merger aims to strengthen Hitachi’s healthcare business and accelerate growth of thisbusiness.
The details of the Merger are as follows.
(1) Merger Method
These are absorption-type mergers in which the Company is the surviving company and Hitachi
Medical and Hitachi Aloka Medical are the disappearing companies.
(2) Details of Allotments Related to the Merger
There will be no allotment of shares or other assets as a result of the Merger, because the Company
directly or indirectly holds all of issued shares of Hitachi Medical and Hitachi Aloka Medical.
(3) Assets and liabilities succeeded in the Merger
Not yet determined.
(4) Profile of the Surviving Company after the Merger
Name
Hitachi, Ltd.
Head office
6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo
Representative Toshiaki Higashihara, President & COO
Capital458,790 million yen
Development, manufacture and sales of products and provision of services across
9 segments: Information & Telecommunication Systems, Social Infrastructure & Industrial
Business
Systems, Electronic Systems & Equipment, Construction Machinery, High Functional
Materials & Components, Automotive Systems, Smart Life & Ecofriendly Systems,
Others (Logistics and Other services) and Financial Services (consolidated basis)
3. Analyses of Consolidated Financial Condition, Operating Results and Cash Flows(1) Outline of Business Results
Effective from April 1, 2015, the Power Systems segment has been integrated to the Social Infrastructure& Industrial Systems segment. Figures for the Social Infrastructure & Industrial Systems segment, including
those for the six months ended September 30, 2014, reflect the new segmentation.

2

Results of Operations
During the six months ended September 30, 2015, the U.S. economy continued to show an improvement
in employment and income conditions, and recovery trend in consumer spending. The European economy also
showed the signs of improvement with the support of quantitative easing policy. The Chinese economic growthcontinued to decelerate, and economic growth in emerging countries also slowed down owing to declines incrude oil and raw materials prices. The Japanese economy was on a recovery trend, due mainly to a rise in
consumer spending supported by improvement in employment conditions and increases in real wages as well asa sustained recovery in corporate earnings. However, the pace of recovery slowed down because of sluggish
growth in production resulting mainly from decline in exports to China.
Under these conditions, results of operations in the six months ended September 30, 2015 were as follows.
Revenues increased 6% to ¥4,806.8 billion, as compared with the six months ended September 30, 2014,
due mainly to higher revenues in the Information & Telecommunication Systems, Social Infrastructure &Industrial Systems, High Functional Materials & Components and Automotive Systems segments. This increase
was partially offset by lower revenues in the Construction Machinery segment, etc.
Cost of sales increased 6% to ¥3,556.4 billion, as compared with the six months ended September 30,
2014, and the ratio of cost of sales to revenues was 74%, which was the same level as the six months ended
September 30, 2014. Gross profit increased 5% to ¥1,250.4 billion, as compared with the six months ended
September 30, 2014.
Selling, general and administrative expenses (“SG&A”) increased 5% to ¥976.4 billion, as compared withthe six months ended September 30, 2014, and the ratio of SG&A to revenues was 20%, which was the samelevel as the six months ended September 30, 2014.
Other income increased ¥24.5 billion to ¥31.3 billion, as compared with the six months ended September
30, 2014, due mainly to increased net gain on business reorganization and others partly because of the sale of apart of equity interest in Hitachi Tool Engineering, Ltd. by Hitachi Metals, Ltd. Other expenses increased ¥20.0
billion to ¥43.4 billion, as compared with the six months ended September 30, 2014, due mainly to increased
restructuring charges.
Financial income (excluding interest income) decreased ¥0.5 billion to ¥7.6 billion and financial expenses(excluding interest charges) increased ¥16.4 billion to ¥18.9 billion, as compared with the six months ended
September 30, 2014, respectively. This was due mainly to posting exchange loss, while exchange gain was
posted in the six months ended September 30, 2014.
Share of profits of investments accounted for using the equity method decreased ¥0.5 billion to ¥11.9
billion, as compared with the six months ended September 30, 2014.
EBIT (earnings before interest and taxes, which is presented as income from continuing operations, before
income taxes less interest income plus interest charges) decreased ¥2.7 billion to ¥262.6 billion, as comparedwith the six months ended September 30, 2014.
Interest income decreased ¥0.2 billion to ¥5.4 billion and interest charges increased ¥0.5 billion to ¥13.4
billion, as compared with the six months ended September 30, 2014, respectively.
Income from continuing operations, before income taxes decreased ¥3.5 billion to ¥254.6 billion, as
compared with the six months ended September 30, 2014.
Income taxes increased ¥12.0 billion to ¥77.0 billion, as compared with the six months ended September
30, 2014.
Loss from discontinued operation decreased ¥4.5 billion to ¥11.7 billion, as compared with the six months
ended September 30, 2014.
Net income decreased ¥11.0 billion to ¥165.8 billion, as compared with the six months ended September
30, 2014.
Net income attributable to non-controlling interests increased ¥9.0 billion to ¥68.2 billion, as comparedwith the six months ended September 30, 2014.
As a result of the foregoing, net income attributable to Hitachi, Ltd. stockholders decreased ¥20.0 billion
to ¥97.5 billion, as compared with the six months ended September 30, 2014.

3

Operations by Segment
The following is an overview of results of operations by segment. Revenues for each segment include
intersegment transactions. Segment profit is measured by EBIT.
(Information & Telecommunication Systems)
Revenues increased 7% to ¥1,000.1 billion, as compared with the six months ended September 30, 2014,
due mainly to strong performances by the system solutions business, centered on financial systems, and higher
revenues from the storage solutions business as a result of the effects of foreign exchange rate fluctuations.
Segment profit increased ¥0.2 billion to ¥45.2 billion, as compared with the six months ended September
30, 2014, due mainly to higher profits in the system solutions business resulting from increased revenues. Thisdecrease was partially offset by lower profits in the platform business owing to reduction in capital investment
by Japanese telecommunications carriers and posting expenses for business restructuring.
(Social Infrastructure & Industrial Systems)
Revenues increased 6% to ¥950.0 billion, as compared with the six months ended September 30, 2014,
due mainly to strong performances by the elevators and escalators business and the railway systems business,
etc.
Segment profit decreased ¥11.6 billion to ¥12.8 billion, as compared with the six months ended September
30, 2014, due mainly to the negative impact of certain overseas projects in the infrastructure systems business.
This decrease was partially offset by the higher profits in the elevators and escalators business due mainly tohigher revenues.
(Electronic Systems & Equipment)
Revenues increased 4% to ¥549.4 billion, as compared with the six months ended September 30, 2014,
due mainly to higher sales of semiconductor manufacturing equipments at Hitachi Kokusai Electric Inc. andmedical analysis equipments at Hitachi High-Technologies Corporation.
Segment profit increased ¥5.0 billion to ¥32.0 billion, as compared with the six months ended September
30, 2014, due mainly to higher profits as a result of increased revenues at Hitachi Kokusai Electric Inc., and theeffects of business restructuring.
(Construction Machinery)
Revenues decreased 6% to ¥365.0 billion, as compared with the six months ended September 30, 2014,
due mainly to sluggish market conditions in Asia, in particular China, and Oceania.
Segment profit decreased ¥17.3 billion to ¥11.7 billion, as compared with the six months ended September
30, 2014, due mainly to lower revenues, a higher ratio of compact models with lower profitability in the productmix owing to exhaust emission regulations in Japan and product mix changes in China, production adjustment
and posting exchange loss.
(High Functional Materials & Components)
Revenues increased 14% to ¥800.5 bullion, as compared with the six months ended September 30, 2014,
due mainly to the effects of the consolidation of Waupaca Foundry, Inc. by Hitachi Metals, Ltd. in November
2014 and solid performances for automobile products mainly in North America.
Segment profit increased ¥23.5 billion to ¥86.1 billion, as compared with the six months ended September
30, 2014, due mainly to posting net gain on business reorganization and others related to the sale of a part ofequity interest in Hitachi Tool Engineering, Ltd. by Hitachi Metals, Ltd., and the effects of businessrestructuring.
(Automotive Systems)
Revenues increased 10% to ¥490.1 billion, as compared with the six months ended September 30, 2014,
due mainly to growth in sales driven by robust demand for automobiles in North America.
Segment profit increased ¥4.9 billion to ¥25.2 billion, as compared with the six months ended September
30, 2014, due mainly to higher revenues and the absence of expenses related to competition law recorded in thesix months ended September 30, 2014. This increase was partially offset by increased R&D expenditures.

4

(Smart Life & Ecofriendly Systems)
Revenues increased 4% to ¥393.2 billion, as compared with the six months ended September 30, 2014,
due mainly to higher sales in overseas markets in the home appliance business and the air-conditioning business.
Segment profit decreased ¥5.5 billion to ¥13.1 billion, as compared with the six months ended September
30, 2014, due mainly to increased procurement costs owing to the depreciation of yen. This decrease waspartially offset by higher sales and the effect of introduction of new products and promotion of cost reduction.
(Others (Logistics and Other services))
Revenues were ¥623.0 billion, which was the same level as the six months ended September 30, 2014, due
mainly to lower revenues at Hitachi-LG Data Storage, Inc. owing to the impact of a weak market for optical disk
drives, despite higher revenues at Hitachi Transport System, Ltd.
Segment profit increased ¥8.5 billion to ¥24.3 billion, as compared with the six months ended September
30, 2014, due mainly to increased earnings resulting from higher revenues at Hitachi Transport System, Ltd.
(Financial Services)
Revenues increased 4% to ¥181.2 billion, as compared with the six months ended September 30, 2014,
due mainly to a strong performance in overseas business, particularly in North America and Europe.
Segment profit increased ¥5.1 billion to ¥24.5 billion, as compared with the six months ended September
30, 2014, due mainly to higher revenues and the effects of business restructuring.
Revenues by Market
Revenues in Japan were ¥2,416.1 billion, which was the same level as the six months ended September 30,
2014, due mainly to higher revenues in the Information & Telecommunication Systems and Social Infrastructure& Industrial Systems segments, despite lower revenues in the High Functional Materials & Components
segment, etc.
Overseas revenues increased 12% to ¥2,390.6 billion, as compared with the six months ended September
30, 2014, due mainly to higher revenues in North America mainly in the High Functional Materials &Components segment, primarily resulting from the consolidation of Waupaca Foundry, Inc. by Hitachi Metals,Ltd., higher revenues in Asia mainly in the Social Infrastructure & Industrial Systems segment, and the effects of
yen’s depreciation against local currencies in those regions. This increase was partially offset by lower revenues
in Other Areas mainly in the Construction Machinery segment.
As a result, the ratio of overseas revenues to total revenues increased 3% to 50%, as compared with the six
months ended September 30, 2014.
(2) Summary of Financial Condition, etc.
Liquidity and Capital Resources
During the six months ended September 30, 2015, 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 and fundraising.
Cash Flows(Cash flows from operating activities)
Net income in the six months ended September 30, 2015 decreased ¥11.0 billion to ¥165.8 billion, as
compared with the six months ended September 30, 2014. Increase in inventories in the six months ended
September 30, 2015 decreased ¥46.0 billion to ¥98.4 billion, as compared with the six months ended September
30, 2014. Decrease in trade receivables in the six months ended September 30, 2015 increased ¥122.5 billion to¥230.8 billion, as compared with the six months ended September 30, 2014. This is because collection ofreceivables recorded at the end of the fiscal year ended March 31, 2015 proceeded in the six months ended
September 30, 2015. Decrease in trade payables in the six months ended September 30, 2015 increased ¥27.5
billion to ¥104.9 billion, as compared with the six months ended September 30, 2014. Decrease in retirement andseverance benefits in the six months ended September 30, 2015 increased ¥6.3 billion to ¥39.1 billion, as
compared with the six months ended September 30, 2014. As a result of the foregoing, cash flows fromoperating activities recorded net cash inflow of ¥309.5 billion in the six months ended September 30, 2015, anincrease of ¥131.0 billion compared with the six months ended September 30, 2014.

5

(Cash flows from investing activities)
A net sum of ¥306.7 billion in the six months ended September 30, 2015 was recorded as investments
related to property, plant and equipment, where the proceeds from sale of property, plant and equipment, andintangible assets, the proceeds from sale of leased assets and the collection of lease receivables were subtracted
from the amount of the purchase of property, plant and equipment, the purchase of intangible assets and thepurchase of leased assets. This net sum increased by ¥49.8 billion compared with the six months ended
September 30, 2014. Purchase of investments in securities and other financial assets (including investments in
subsidiaries and investments accounted for using the equity method) in the six months ended September 30,
2015 increased ¥53.4 billion to ¥78.3 billion, as compared with the six months ended September 30, 2014, due
mainly to the acquisition of Pentaho Corporation by Hitachi Data Systems Corporation. Proceeds from sale ofinvestments in securities and other financial assets (including investments in subsidiaries and investments
accounted for using the equity method) in the six months ended September 30, 2015 increased ¥23.8 billion to¥43.1 billion, as compared with the six months ended September 30, 2014. As a result of the foregoing, cash
flows from investing activities recorded net cash outflow of ¥332.4 billion in the six months ended September
30, 2015, an increase of ¥63.8 billion compared with the six months ended September 30, 2014.
(Cash flows from financing activities)
Net decrease in short-term debt was ¥50.5 billion in the six months ended September 30, 2015, whereas
net increase of ¥59.7 billion was recorded in the six months ended September 30, 2014. A net sum of ¥146.3
billion in the six months ended September 30, 2015 was recorded as proceeds related to long-term debt, where
the payments on long-term debt were subtracted from the proceeds from long-term debt. This net inflow
increased by ¥4.7 billion compared with the six months ended September 30, 2014. As a result of the foregoing,
cash flows from financing activities recorded net cash inflow of ¥37.4 billion in the six months ended September
30, 2015, a decrease of ¥113.8 billion compared with the six months ended September 30, 2014.
As a result of the foregoing, cash and cash equivalents as of September 30, 2015 was ¥695.1 billion, adecrease of ¥6.5 billion from March 31, 2015. Free cash flows, the sum of cash flows from operating andinvesting activities, were an outflow of ¥22.8 billion in the six months ended September 30, 2015, a decrease of¥67.1 billion compared with the six months ended September 30, 2014.
Assets, Liabilities and Equity
The following is an overview of Hitachi’s assets, liabilities and equity as of September 30, 2015.
Total assets were ¥12,354.3 billion, a decrease of ¥79.4 billion from March 31, 2015. This was due mainly
to decreases in the value of assets denominated in foreign currency owing to the appreciation of yen and theeffect of lower stock price. This decrease was partially offset by the effect of the acquisition of Pentaho
Corporation by Hitachi Data Systems Corporation in May 2015 and an increase in lease receivables associatedwith business expansion, especially for foreign markets, in the Financial Services segment.
Total interest-bearing debt, the sum of short-term debt and long-term debt, was ¥3,643.8 billion, an
increase of ¥86.4 billion from March 31, 2015. This was due mainly to higher demand for funds in line withbusiness expansion in the Financial Services segment.
Total Hitachi, Ltd. stockholders’ equity increased by ¥0.6 billion from March 31, 2015, to ¥2,942.9
billion, due mainly to posting of net income attributable to Hitachi, Ltd. stockholders, despite a decrease inaccumulated other comprehensive income. The ratio of total Hitachi, Ltd. stockholders’ equity to total assets
increased 0.1% from March 31, 2015 to 23.8%.
Non-controlling interests were ¥1,374.4 billion, an increase of ¥20.4 billion from March 31, 2015.
Total equity was ¥4,317.4 billion, an increase of ¥21.1 billion from March 31, 2015. The ratio ofinterest-bearing debt to total equity was 0.84, as compared with 0.83 as of March 31, 2015.
(3) Challenges Facing Hitachi Group
1) Business and Financial Condition
There were no material changes in Hitachi’s business strategy during the six months ended September 30,
2015.
2) Fundamental Policy on the Conduct of Persons Influencing Decision on the Company’s Financial andBusiness Policies
The Group invests a great deal of business resources in fundamental research and in the development ofmarket-leading products and businesses that will bear fruit in the future, and realizing the benefits from thesemanagement policies requires that they be continued for a set period of time. For this purpose, the Company

6keeps its shareholders and investors well informed of not just the business results for each period but also of theCompany’s business policies for creating value in the future.
The Company does not deny the significance of the vitalization of business activities and performance thatcan be brought about through a change in management control, but it recognizes the necessity of determining
the impact on company value and the interests of all shareholders of the buying activities and buyout proposals
of parties attempting to acquire a large share of stock of the Company or a Group company by duly examining
the business description, future business plans, past investment activities, and other necessary aspects of such aparty.
There is no party that is currently attempting to acquire a large share of the Company’s stocks nor is therea specific threat, neither does the Company intend to implement specified so-called anti-takeover measures inadvance of the appearance of such a party, but the Company does understand that it is one of the natural duties
bestowed upon it by the shareholders and investors to continuously monitor the state of trading of theCompany’s stock and then to immediately take what the Company deems to be the best action in the event of
the appearance of a party attempting to purchase a large share of the Company’s stock. In particular, together
with outside experts, the Company will evaluate the buyout proposal of the party and hold negotiations with thebuyer, and if the Company deems that said buyout will not maintain the Company’s value and is not in the bestinterest of the shareholders, then the Company will quickly determine the necessity, content, etc., of specificcountermeasures and prepare to implement them. The same response will also be taken in the event a party
attempts to acquire a large percentage of the shares of a Group company.
(4) Research and Development
There were no material changes in the research and development of the Hitachi Group (the Company andconsolidated subsidiaries) stated in the Annual Securities Report for the 146th business term pursuant to the
Financial Instruments and Exchange Act of Japan. The Hitachi Group’s R&D expenditures in the six months
ended September 30, 2015 were ¥164.4 billion, 3.4% of revenues. A breakdown of R&D expenditures bysegment is shown below.
(Billions of yen)Six months ended
Segment
September 30, 2015
Information & Telecommunication Systems
30.4
Social Infrastructure & Industrial Systems
21.3
Electronic Systems & Equipment
24.3
Construction Machinery
9.4
High Functional Materials & Components
23.4
Automotive Systems
34.5
Smart Life & Ecofriendly Systems
6.2
Others (Logistics and Other services)
2.5
Financial Services
0.0
Corporate
12.1
Total
164.4
(5) Employees
The number of employees of the Company increased by 7,098 persons during the six months ended
September 30, 2015, to 38,473 persons.
For this increase, the following shows segments where the number of employees of the Company
significantly increased.
The number of employees of the Company in the Information & Telecommunication Systems segment
increased by 3,998 persons, to 17,871 persons. This increase was due mainly to the absorption-type company
split in which the Company succeeded the system solutions business in the social infrastructure, financial, andgovernment & public sectors in Hitachi Solutions, Ltd. on April 1, 2015.
The number of employees of the Company in the Electronic Systems & Equipment segment increased by
3,290 persons, to 3,389 persons. This increase was due mainly to temporally transfer of employees of Hitachi
Medical Corporation and Hitachi Aloka Medical, Ltd. to the Company on April 1, 2015 for integrated
management of the healthcare business.
There were no material changes in the number of employees of the Hitachi Group (the Company andconsolidated subsidiaries).

7(6) Property, Plants and Equipment
The major property, plants and equipment materially changed during the six months ended September 30,
2015 are as follows. This was due mainly to the absorption-type company split in which the Company succeeded
the system solutions business in the social infrastructure, financial, and government & public sectors in Hitachi
Solutions, Ltd. on April 1, 2015.
The Company(As of September 30, 2015)
Book value (Millions of yen)
Details ofLand
Tools,
Number of
Facility
Buildings Machinery
Segment
major
facilities
Construction[Areainfurniture(Main location)
employees
and
and
Total
Other
and equipment thousands
andin progressstructures vehicles
2of m ]
fixtures
Systemdevelopment
Information &Telecommunication Information & facilities,
15,820manufacturing
Systems Company Telecommuni- facilities for
57,3782,237 27,514 3,316
1,934 108,201
17,156[609](Shinagawa-ku,
cation Systems servers,
Tokyo)
mainframes,
etc.

Domestic subsidiaries(As of September 30, 2015)
Facility(Main location)

HitachiSolutions, Ltd.,
Head Office(Shinagawa-ku,
Tokyo)

Segment

Book value (Millions of yen)
Details ofLand
Tools,
Number ofmajor facilities [Area in Buildings Machinery furniture
Construction
employees
and
and
Total
Other
and equipment thousands
andin progressstructures vehicles
2of m ]
fixtures

Information &Telecommuni- Other facilities
cation Systems

－
[－]

518

－

541

95

－

1,154

(7) Forward-Looking Statements
Certain statements found in “3. Analyses of Consolidated Financial Condition, 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.” Such statements are based on currently available information and are
subject to various risks and uncertainties that could cause actual results to differ materially from those projectedor implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements”
are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should
not be placed on “forward-looking statements,” as such statements speak only as of the date of this report.
Factors that could cause actual results to differ materially from those projected or implied in any“forward-looking statement” and from historical trends include, but are not limited to:
•

•
•
•

economic conditions, including consumer spending and plant and equipment investment in Hitachi’s major
markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the majorindustrial sectors Hitachi serves, including, without limitation, the information, electronics, automotive,
construction and financial sectors;
exchange rate fluctuations of the yen against other currencies in which Hitachi makes significant sales or inwhich Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and the euro;
uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing;
uncertainty as to general market price levels for equity securities, declines in which may require Hitachi towrite down equity securities that it holds;

8

2,247

•
•
•
•
•
•
•
•
•
•
•
•

•
•
•
•
•
•
•
•
•

uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate newtechnologies on a timely and cost-effective basis and to achieve market acceptance for such products;
the possibility of cost fluctuations during the lifetime of, or cancellation of, long-term contracts for which
Hitachi uses the percentage-of-completion method to recognize revenue from sales;credit conditions of Hitachi’s customers and suppliers;
fluctuations in the price of raw materials including, without limitation, petroleum and other materials, suchas copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials,
parts and components;
fluctuations in product demand and industry capacity;
uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact offluctuations in product demand, exchange rates and/or price of raw materials or shortages of materials, partsand components;
increased commoditization of and intensifying price competition for products;
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 andthe possibility of incurring related expenses;
uncertainty as to the success of restructuring efforts to improve management efficiency by divesting orotherwise exiting underperforming businesses and to strengthen competitiveness;
uncertainty as to the success of cost reduction measures;
general socioeconomic and political conditions and the regulatory and trade environment of countries where
Hitachi conducts business, particularly Japan, Asia, the United States and Europe, including, without
limitation, direct or indirect restrictions by other nations on imports and differences in commercial andbusiness customs including, without limitation, contract terms and conditions and labor relations;
uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may notcontrol, with other corporations in the design and development of certain key products;
uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly
those related to electronics and data processing technologies;
uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings 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;
the potential for significant losses on Hitachi’s investments in equity-method associates and joint ventures;the possibility of disruption of Hitachi’s operations by natural disasters such as earthquakes and tsunamis,the spread of infectious diseases, and geopolitical and social instability such as terrorism and conflict;uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s
ability to protect its confidential information or that of its customers;
uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its significant employee
benefit-related costs; anduncertainty as to Hitachi’s ability to attract and retain skilled personnel.

The factors listed above are not all-inclusive and are in addition to other factors contained elsewhere in thisreport and in other materials published by Hitachi.

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

Common stock

Total number of shares authorized to be issued(shares)
10,000,000,000

Total

10,000,000,000

Class2) Issued shares
Class

Number of sharesissued as of the end of
second quarter (shares)(September 30, 2015)

Number of sharesissued as of the filingdate (shares)(November 12, 2015)

Commonstock

4,833,463,387

4,833,463,387

Total

4,833,463,387

4,833,463,387

Stock exchange on which
the Company is listed
Tokyo, Nagoya

Description
The number ofshares per one unit ofshares is 1,000
shares.

－－(2) Information on the stock acquisition rights, etc.
Not applicable.
(3) Information on moving strike convertible bonds, etc.
Not applicable.
(4) Information on shareholder right plans
Not applicable.
(5) Changes in the total number of issued shares and the amount of common stock and other

Date
From July 1, 2015 to
September 30, 2015

Change in the Balance of the Change in Balance of Change in Balance of
total number total number of common
capitalcommoncapitalof issuedstockreservestock
reserveissued sharesshares(Millions of (Millions of (Millions of (Millions of(shares)(shares)
yen)
yen)
yen)
yen)
－

4,833,463,387

10－

458,790－

176,757

(6) Major shareholders

Name

Address

The Master Trust Bank of Japan,
Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd.
(Trust Account)Hitachi Employees’ Shareholding
Association

11-3, Hamamatsucho 2-chome,
Minato-ku, Tokyo
8-11, Harumi 1-chome, Chuo-ku,
Tokyo
6-6, Marunouchi 1-chome,
Chiyoda-ku, Tokyo
6-6, Marunouchi 1-chome,
Chiyoda-ku, Tokyo
Rue Montoyerstraat 46, 1000
Brussels, Belgium(7-1, Marunouchi 2-chome,
Chiyoda-ku, Tokyo)
1776 Heritage Drive, North Quincy,
MA 02171, U.S.A.
(16-13, Tsukishima 4-chome,
Chuo-ku, Tokyo)
13-1, Yurakucho 1-chome,
Chiyoda-ku, Tokyo
P.O. Box 351
Boston, Massachusetts 02101 U.S.A.
(16-13, Tsukishima 4-chome,
Chuo-ku, Tokyo)
C/O Citibank New York, 111 WallStreet, New York NY, U.S.A.
(16-13, Tsukishima 4-chome,
Chuo-ku, Tokyo)
P.O. Box 351
Boston, Massachusetts 02101 U.S.A.
(16-13, Tsukishima 4-chome,
Chuo-ku, Tokyo)

Nippon Life Insurance Company
THE BANK OF NEW YORKMELLON SA/NV 10(Standing proxy: The Bank ofTokyo-Mitsubishi UFJ, Ltd.)State Street Bank West
Client-Treaty 505234(Standing proxy: Mizuho Bank,Ltd.)
The Dai-ichi Life Insurance
Company, Limited
State Street Bank and Trust
Company 505225(Standing proxy: Mizuho Bank,
Ltd.)
NATS CUMCO(Standing proxy: Mizuho Bank,
Ltd.)
State Street Bank and Trust
Company 505223(Standing proxy: Mizuho Bank,
Ltd.)
Total
(Notes)－(As of September 30, 2015)
Ownership
Share
percentage to the
Ownership
total number of(shares)issued shares(%)
284,882,000

5.89

213,776,415

4.42

98,244,384

2.03

93,265,195

1.93

81,594,836

1.69

73,278,327

1.52

71,361,222

1.48

70,326,306

1.45

70,294,720

1.45

54,828,007

1.13

1,111,851,412

23.00

1. NATS CUMCO is the nominee name of the depositary bank, Citibank, N.A., for the aggregate of
the Company’s American Depositary Receipts (ADRs) holders.
2. The number of shares held by The Dai-Ichi Life Insurance Company, Limited includes its
contribution of 6,560,000 shares to the retirement allowance trust (the holder of said shares, as
listed in the Shareholders’ Register, is “Dai-Ichi Life Insurance Account, Retirement Allowance
Trust, Mizuho Trust & Banking Co., Ltd.”).
3. The Company has received copies of reports on substantial shareholdings under the Financial
Instruments and Exchange Act. However, the information in the report is not described in theabove table since the Company does not confirm the actual status of shareholdings as of the end of
September 30, 2015. The major contents of the reports are as follows.
Holders

Mitsubishi UFJ Trust and Banking Corporation and threeother persons
May 23, 2011
237,294,613 shares

Date on which the duty to file report
Number of shares
Ownership percentage to the total number
5.24 %
of issued shares

Holders
BlackRock Japan Co. Ltd and nine other persons
Date on which the duty to file report
March 31, 2014
Number of shares
255,857,172 shares
Ownership percentage to the total number 5.29%
of issued shares

11Holders
Sumitomo Mitsui Trust Bank, Limited and two other persons
Date on which the duty to file report
July 31, 2014
Number of shares
244,372,374 shares
Ownership percentage to the total number 5.06%
of issued shares(7) Information on voting rights
1) Issued sharesClassification(As of September 30, 2015)
Number of voting
Description
rightsNumber of shares (shares)

Shares without voting right
Shares with restricted voting
right (treasury stock, etc.)
Shares with restricted voting
right (others)
Shares with full voting right(treasury stock, etc.)
Shares with full voting right(others)
Shares less than one unit

－

－

－

－

－

－

－

－

－

－

－

Common stock

5,248,000

Common stock

4,805,396,000

4,805,396－

Common stock

22,819,387－－

4,833,463,387－－

4,805,396－

Number of issued shares
Total number of voting rights－(Note) The “Shares with full voting right (others)” column includes 26,000 shares registered in the name ofJapan Securities Depository Center, Incorporated (account for managing stocks whose shareholders havenot transferred titles) and 26 voting rights for those shares.
2) Treasury stock, etc.

Name ofshareholder

Hitachi, Ltd.
Aoyama Special
Steel Co., Ltd.
ISHIIDENKOSHA
Co., Ltd.
SAITAKOUGYOU CO.,LTD.

Address

6-6, Marunouchi 1-chome,
Chiyoda-ku, Tokyo
9-11, Shinkawa 2-chome,
Chuo-ku, Tokyo
1-11, Oroshishinmachi
3-chome, Higashi-ku,
Niigata-shi, Niigata

Number of
Number ofshares held
shares held
under theunder own name names of(shares)others(shares)(As of September 30, 2015)
Ownership
percentage to
Total shares
the total
held (shares)
number ofissued shares(%)

5,082,000－

5,082,000

0.11

10,000－10,000

0.00

1,000

－

1,000

0.00

88,000－88,0000.00

5-3, Takinogawa 5-chome,
Kita-ku, Tokyo

52,000－52,0000.00

Mizuho Co., Inc.

3268, Nagaoka,
Ibarakimachi,
Higashiibaraki-gun, Ibaraki
4-1, Koishikawa 5-chome,
Bunkyo-ku, Tokyo

15,000－15,000

0.00

Total

－

5,248,000－

5,248,000

0.11

Nitto Jidosha
Kiki K.K.

2. Changes in Senior Management
There were no changes in senior management from the filing date of the Annual Securities Report for the146th business term pursuant to the Financial Instruments and Exchange Act of Japan to September 30, 2015.

12

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

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

13

CONDENSED QUARTERLY CONSOLIDATED FINANCIAL STATEMENTSCONDENSED QUARTERLY CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Millions of yen
September 30,

March 31,

2015

2015

695,1412,648,448
328,722
1,503,544
523,566

701,7032,870,042
337,353
1,458,119
515,195

5,699,421

5,882,412

701,395
1,394,251
712,350
2,510,809
1,004,854
331,247

681,623
1,449,734
680,620
2,472,497
933,582
333,259

Total non-current assets

6,654,906

6,551,315

Total assets

12,354,327

12,433,727

Current liabilities
Short-term debt
Current portion of long-term debt (note 6)
Other financial liabilities (note 6)
Trade payables
Accrued expenses
Advances received
Other current liabilities

914,509558,991
258,885
1,313,161
748,772
438,136
425,578

977,701
483,521296,425
1,426,523
759,191374,241
461,876

Total current liabilities

AssetsCurrent assets
Cash and cash equivalents
Trade receivables (note 6)
Lease receivables (note 6)
Inventories
Other current assets (note 6)
Total current assets
Non-current assets
Investments accounted for using the equity method
Investments in securities and other financial assets (note 6)
Lease receivables (note 6)
Property, plant and equipment
Intangible assets
Other non-current assets

Liabilities

4,658,032

4,779,478

Non-current liabilities
Long-term debt (note 6)
Other financial liabilities (note 6)
Retirement and severance benefits
Other non-current liabilities

2,170,338
120,848684,541
403,108

2,096,134
117,535
724,223420,015

Total non-current liabilities

3,378,835

3,357,907

Total liabilities

8,036,867

8,137,385

Hitachi, Ltd. stockholders’ equity
Common stock
Capital surplus
Retained earnings (note 7)
Accumulated other comprehensive income
Treasury stock, at cost

458,790
607,571
1,551,008
329,293(3,697)458,790
608,416
1,477,517
401,100(3,542)

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

2,942,965
1,374,495

2,942,281
1,354,061

Total equity

4,317,460

4,296,342

Total liabilities and equity

12,354,327

12,433,727

EquitySee accompanying notes to condensed quarterly consolidated financial statements.

F-1

CONDENSED QUARTERLY CONSOLIDATED STATEMENTS OF PROFIT OR LOSS ANDCONDENSED QUARTERLY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Six months ended September 30, 2015 and 2014
Condensed Quarterly Consolidated Statements of Profit or Loss
Six months ended September 30
Revenues
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income (note 8)
Other expenses (note 8)
Financial income (note 9)
Financial expenses (note 9)
Share of profits of investments accounted for using the equity method
EBIT (Earnings before interest and taxes)
Interest income
Interest charges
Income from continuing operations, before income taxes
Income taxes
Income from continuing operations
Loss from discontinued operations (note 10)
Net income
Net income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests

Millions of yen
2015
2014
4,806,888
4,552,076(3,556,463) (3,358,129)
1,250,425
1,193,947(976,418)(930,196)
31,374
6,818(43,460)(23,394)
7,692
8,224
(18,979)(2,570)11,997
12,537
262,631265,366
5,490
5,758(13,428)(12,905)
254,693258,219(77,085)(65,016)
177,608
193,203(11,758)(16,350)
165,850
176,853

Earnings per share from continuing operations,
attributable to Hitachi, Ltd. stockholders (note 11)
Basic
DilutedEarnings per share attributable to Hitachi, Ltd. stockholders (note 11)
Basic
DilutedSee accompanying notes to condensed quarterly consolidated financial statements.

F-2

97,591
68,259117,631
59,222

22.65
22.62

Yen
27.75
27.73

20.21
20.19

24.36
24.34

Condensed Quarterly Consolidated Statements of Comprehensive Income
Six months ended September 30

Millions of yen
2015
2014
165,850
176,853

Net income
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
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
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(40,840)1,131
1(39,708)

32,451
342
175
32,968(53,208)
(387)
4,884
(48,711)

79,343(8,798)(40,283)
30,262(88,419)
77,431

63,230240,083

30,621
46,810152,320
87,763

CONDENSED QUARTERLY CONSOLIDATED STATEMENTS OF PROFIT OR LOSS ANDCONDENSED QUARTERLY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended September 30, 2015 and 2014
Condensed Quarterly Consolidated Statements of Profit or Loss
Three months ended September 30
Revenues
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Financial income
Financial expenses
Share of profits of investments accounted for using the equity method
EBIT (Earnings before interest and taxes)
Interest income
Interest charges
Income from continuing operations, before income taxes
Income taxes
Income from continuing operations
Loss from discontinued operations
Net income
Net income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests

Millions of yen
2015
2014
2,492,865
2,388,065(1,845,207) (1,764,296)
647,658
623,769(489,041)(472,347)
2,308
1,669
(31,134)(22,096)
3,556
6,571
(24,639)
(887)
7,455
9,364
116,163
146,0432,483
2,851(6,647)(6,453)111,999
142,441(31,028)(33,019)
80,971
109,422(10,155)(3,048)70,816
106,374

Earnings per share from continuing operations,
attributable to Hitachi, Ltd. stockholders (note 11)
Basic
DilutedEarnings per share attributable to Hitachi, Ltd. stockholders (note 11)
Basic
DilutedSee accompanying notes to condensed quarterly consolidated financial statements.

F-4

42,63328,18375,76730,607

10.93
10.93

Yen
16.32
16.32

8.83
8.83

15.69
15.68

Condensed Quarterly Consolidated Statements of Comprehensive Income
Three months ended September 30

Millions of yen
2015
2014
70,816
106,374

Net income
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(49,120)
1,079
(378)
(48,419)

28,905149
21
29,075(98,669)
18,117(18,610)(99,162)

94,551(6,502)(24,304)
63,745

Other comprehensive income (OCI)
Comprehensive income (loss)(147,581)(76,765)

92,820199,194

Comprehensive income (loss) attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests(70,289)(6,476)136,203
62,991

Total items not to be reclassified into net income
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

See accompanying notes to condensed quarterly consolidated financial statements.

F-5

CONDENSED QUARTERLY CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Six months ended September 30, 2015 and 2014
Millions of yen
Six months ended September 30, 2015

Balance at beginning of period
Changes in equity
Reclassified into retained
earnings
Net income
Other comprehensive loss
Dividends to Hitachi, Ltd.
stockholders
Dividends to non-controllinginterests
Acquisition of treasury stock
Sales of treasury stock
Changes in non-controllinginterests

Accumulated
othercomprehensive
incomeTreasurystock,
at cost

Total
Hitachi, Ltd.
stockholders’equityNoncontrollinginterests

Total equity

Commonstock

CapitalsurplusRetainedearnings(note 7)458,790

608,416

1,477,517

401,100(3,542)

2,942,281

1,354,061

4,296,342

-

-

4,871
97,591-(4,871)(66,970)-

97,591(66,970)

68,259(21,449)

165,850(88,419)--(28,971)--(28,971)-(28,971)

-

1

-

-

(169)
14

(169)
15

(24,861)-(24,861)
(169)
15

-

(846)

-

34

-

(812)

(1,515)(2,327)

Total changes in equity

-

(845)

73,491(71,807)

(155)

684

20,434

21,118

Balance at end of period

458,790

607,571

1,551,008

329,293(3,697)2,942,965

1,374,495

4,317,460
Millions of yen

Six months ended September 30, 2014

Balance at beginning of period
Changes in equity
Reclassified into retained
earnings
Net income
Other comprehensive income
Dividends to Hitachi, Ltd.
stockholders
Dividends to non-controllinginterests
Acquisition of treasury stock
Sales of treasury stock
Changes in non-controllinginterests

Accumulated
othercomprehensive
incomeTreasurystock,
at cost

Total
Hitachi, Ltd.
stockholders’equityNoncontrollinginterests

Total equity

Commonstock

CapitalsurplusRetainedearnings(note 7)458,790

617,496

1,277,970

317,547(3,146)

2,668,657

1,200,174

3,868,831

-

-

1,312
117,631-(1,312)
34,689-117,631
34,68959,22228,541

176,853
63,230--(26,559)--(26,559)-(26,559)

-

1

-

-

(181)
18

(181)
19

(18,615)-(18,615)
(181)
19

-

(2,973)-14-(2,959)

7,614

4,655

Total changes in equity-(2,972)

92,38433,391(163)

122,640

76,762

199,402

Balance at end of period

458,790

614,524

1,370,354

350,938(3,309)2,791,297

1,276,936

4,068,233

See accompanying notes to condensed quarterly consolidated financial statements.

F-6

CONDENSED QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended September 30, 2015 and 2014
Millions of yen
2015

2014

165,850

176,853

248,162
1,585
77,085(11,553)
1,280(30,085)
3,299
230,868(98,477)(8,535)(104,954)(39,164)(53,894)
6,175
387,642
5,845
15,840(13,457)(86,282)309,588

227,450
2,142
65,054(12,409)
5,057(4,035)
10,698108,350(144,483)
2,053(77,450)(32,823)(69,769)
3,936
260,624
6,508
7,228(13,408)(82,397)
178,555(189,557)(52,087)(264,081)
2,262
12,001
184,707(168,208)(60,796)(202,482)
14,47818,204
141,935(78,366)(24,965)

43,1629,479(332,480)

19,293(6,050)(268,591)(50,525)
372,170(225,870)
277(28,911)(26,828)(169)
1559,746
467,593(326,041)
1,128(26,508)(20,038)(181)
19(2,665)(4,682)(80)
37,414339(74)
151,301

Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(21,084)(6,562)28,302
89,567

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

701,703695,141

560,657
650,224

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 of investments accounted for using the equity method
Financial income and expenses
Net gain on business reorganization and others
Loss on sale of property, plant and equipment
Decrease in trade receivables
Increase in inventories
Increase (decrease) in other assets
Decrease in trade payables
Decrease in retirement and severance benefits
Decrease in other liabilities
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of leased assets
Proceeds from sale of property, plant and equipment, and intangible assets
Proceeds from sale of leased assets
Collection of lease receivables
Purchase of investments in securities and other financial assets(including investments in subsidiaries andinvestments accounted for using the equity method)
Proceeds from sale of investments in securities and other financial assets(including investments in subsidiaries andinvestments accounted for using the equity method)Other
Net cash used in investing activities
Cash flows from financing activities:
Increase (decrease) 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
Proceeds from partial sales of shares of consolidated
subsidiaries to non-controlling interests
Other
Net cash provided by financing activities

See accompanying notes to condensed quarterly consolidated financial statements.

F-7

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015
(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 forthe six months ended September 30, 2015 comprise the Company, its subsidiaries, and the Company’s
interests in associates and joint ventures. The Company’s and its subsidiaries’ businesses are global anddiverse, and include manufacturing and services in nine segments consisting of information andtelecommunication systems, social infrastructure and industrial systems, electronic systems andequipment, construction machinery, high functional materials and components, automotive systems,
smart life and ecofriendly systems, others (logistics and other services) and financial services.
(2) Basis of Presentation
As the Company meets the requirements of a “Specified Company” pursuant to Article 1-2 of theOrdinance on the Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial
Statements (Cabinet Office Ordinance No.64 of 2007), the condensed quarterly consolidated financial
statements of the Company have been prepared in accordance with International Accounting Standards(IAS) 34 “Interim Financial Reporting”, as permitted by the provision of Article 93 of the Ordinance.
They do not include all the information and disclosures required for a complete set of financial statements
prepared in accordance with International Financial Reporting Standards (IFRS), and should be read in
conjunction with the financial statements and notes included in the Company’s annual consolidated
financial statements for the year ended March 31, 2015.
Management of the Company has made a number of judgments, estimates and assumptions relating to theapplication 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 effects of a change in accounting estimates, ifany, is recognized in the reporting 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, 2015.
(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, 2015.
Income taxes for the six months ended September 30, 2015 are computed using the estimated annual
effective tax rate.

F-8

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015(4) Segment Information
The operating segments of the Company are the components for which separate financial information isavailable and which is evaluated regularly by the chief operating decision maker in deciding how toallocate resources and in assessing performance.
The Company discloses its business in nine reportable segments, corresponding to categories of activities
classified primarily by the nature of markets, products and services and economic characteristics. Several
operating segments are aggregated into Social Infrastructure & Industrial Systems, Electronic Systems &Equipment and High Functional Materials & Components for financial reporting purposes so that
financial statement users better understand the Company’s financial position and business performance.
The Company aggregates operating segments based on the similarities of economic characteristics
mainly using operating segment profit margin ratios. The primary products and services included in eachsegment are as follows:
Information & Telecommunication Systems:
Systems integration, Consulting, Cloud services, Servers, Storage, Software, Telecommunication &network and ATMs
Social Infrastructure & Industrial Systems:
Thermal, Nuclear and Renewable energy power generation systems, Transmission & distribution systems,
Industrial machinery and plants, Elevators, Escalators and Railway systems
Electronic Systems & Equipment:
Semiconductor manufacturing equipment, Test and measurement equipment, Advanced industrial
products, Medical electronics equipment and Power tools
Construction Machinery:Hydraulic excavators, Wheel loaders and Mining machinery
High Functional Materials & Components:
Semiconductor and display related materials, Circuit boards and materials, Automotive parts (molded
plastics, etc.), Energy storage devices, Specialty steels, Magnetic materials and components, High grade
casting components and materials and Wires and cables
Automotive Systems:
Engine management systems, Electric power train systems, Drive control systems and Car information
systems
Smart Life & Ecofriendly Systems:
Air-conditioning equipment, Room air conditioners, Refrigerators and Washing machines
Others (Logistics and Other services):
Logistics, Optical disk drives, Property management and others
Financial Services:
Leasing and Loan guarantees
Due to a change in management reporting, the "Power Systems" was unified to the "Social Infrastructure& Industrial Systems". Figures for the segment, including the previous fiscal year, reflect the changed
segmentation.

F-9

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015
The following tables show business segment information for the six months ended September 30, 2015
and 2014.
Revenues from Outside Customers

Information & Telecommunication Systems
Social Infrastructure & Industrial Systems
Electronic Systems & Equipment
Construction Machinery
High Functional Materials & Components
Automotive Systems
Smart Life & Ecofriendly Systems
Others (Logistics and Other services)
Financial Services
Subtotal
Corporate items
Total

2015
875,159
843,053495,292
356,974
768,777
487,429
375,091
431,306
171,255
4,804,336
2,552
4,806,888

Millions of yen
2014
837,846
779,619
475,024
386,854664,290445,050
358,320440,210
164,487
4,551,700
376
4,552,076

2015
124,976
106,971
54,203
8,116
31,7972,730
18,190191,695
10,005548,683(548,683)-

Millions of yen
2014
99,077
116,937
53,0552,288
35,666
1,206
18,664
185,554
10,261
522,708(522,708)-

Revenues from Intersegment Transactions

Information & Telecommunication Systems
Social Infrastructure & Industrial Systems
Electronic Systems & Equipment
Construction Machinery
High Functional Materials & Components
Automotive Systems
Smart Life & Ecofriendly Systems
Others (Logistics and Other services)
Financial Services
Subtotal
Corporate items
Total

F-10

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015
Total Revenues

Information & Telecommunication Systems
Social Infrastructure & Industrial Systems
Electronic Systems & Equipment
Construction Machinery
High Functional Materials & Components
Automotive Systems
Smart Life & Ecofriendly Systems
Others (Logistics and Other services)
Financial Services
Subtotal
Corporate items and Eliminations
Total

2015
1,000,135
950,024
549,495
365,090
800,574
490,159393,281623,001
181,260
5,353,019(546,131)
4,806,888

Millions of yen
2014
936,923
896,556
528,079
389,142
699,956446,256
376,984
625,764
174,748
5,074,408(522,332)
4,552,076

2015
45,22012,88332,064
11,73886,19725,25013,11524,341
24,548275,356(12,725)
262,6315,490(13,428)

Millions of yen
2014
44,98024,49827,03029,096
62,661
20,287
18,62915,794
19,404
262,379
2,987
265,366
5,758(12,905)

254,693258,219

Segment Profit (Loss)

Information & Telecommunication Systems
Social Infrastructure & Industrial Systems
Electronic Systems & Equipment
Construction Machinery
High Functional Materials & Components
Automotive Systems
Smart Life & Ecofriendly Systems
Others (Logistics and Other services)
Financial Services
Subtotal
Corporate items and Eliminations
Total
Interest income
Interest charges
Income from continuing operations,
before income taxes

Segment profit (loss) is measured by EBIT.
Intersegment transactions are generally recorded at the same prices used in transactions with third parties.
Corporate items include unallocated corporate expenses, such as expenditures for leading-edge R&D andothers.

F-11

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015(5) Business Acquisitions and Divestitures
Hitachi Rail Italy S.p.A. (HRI) and Hitachi Rail Italy Investments S.r.L. (HRII), subsidiaries of theCompany in the Social Infrastructure & Industrial Systems segment, signed binding agreements with
Finmeccanica S.p.A. (FNM) to acquire;1) the current business of AnsaldoBreda S.p.A. (Breda), a manufacturer of rail vehicles for mass transit,
with the exclusion of some revamping activities and certain residual contracts,
2) the entire interest owned by FNM in Ansaldo STS S.p.A. (STS) , a company engaged in the design
and implementation and management of systems for signaling and supervision of railways, equal toapproximately 40% of the share capital,
in order to strengthen their manufacturing footprint and expand their customer base in the global railway
business. On November 2, 2015 (the acquisition date), HRI and HRII closed the deal and acquired thebusiness of Breda and the entire interest owned by FNM in STS in accordance with the binding
agreements. The Company obtained control of STS, due to the acquisition of the share capital and thefact that the Company’s recommended directors represent the majority of the board of directors elected at
the shareholders’ meeting held on the acquisition date, and therefore STS became a consolidated
subsidiary of the Company effective on the same date.
The total acquisition price, paid in cash, for the business of Breda was EUR 30 million (¥4,041 million)
and the total acquisition price, paid in cash, for the shares of STS was EUR 761 million (¥101,184
million). HRII intends to commence a tender offer for the outstanding publicly held shares of STS at
EUR 9.5 per share.
Due to the short period of time between the acquisition date and the issuance date of the condensed
quarterly consolidated financial statements, the initial accounting for the business combination isincomplete and therefore the Company is unable to provide disclosures related to the amounts recognized
as of the acquisition date for each major class of assets acquired and liabilities assumed, the amount of
goodwill, and the non-controlling interests. Revenues and net income attributable to Hitachi, Ltd.
stockholders on a pro forma basis using an assumed acquisition date for the business of Breda and STS ofApril 1, 2015 are currently being evaluated.
On February 7, 2015, Hitachi Data Systems Corporation (HDS), a subsidiary of the Company in the
Information & Telecommunications Systems segment, signed a definitive agreement with theshareholders of Pentaho Corporation (Pentaho) to acquire all the shares of Pentaho, for enhancing
big-data technologies and solutions. Pentaho integrates data, develops technologies for big-data analysis
and visualization, and delivers solutions and supports. On May 29, 2015, HDS acquired all the shares ofPentaho in accordance with the definitive agreement, and HDS obtained control of Pentaho, and it
became a wholly owned subsidiary.

F-12Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015

The following table summarizes the fair value of the consideration paid for Pentaho, the assets acquired
and liabilities assumed recognized as of the acquisition date.
Cash and cash equivalents
Trade receivables
Other current assets
Non-current assets (excluding intangible assets)
Intangible assets
Goodwill (not deductible for tax purposes)
Other intangible assets
Total

Millions of yen
988
807
182
82
55,901
10,275
68,235Current liabilities
Non-current liabilities
Total

3,449
9
3,458

Cash paid for acquisition

64,777

The goodwill mainly comprises excess earning power and expected synergies arising from theacquisition.
The results of operations of Pentaho for the period from the acquisition date to September 30, 2015 were
not material.
On a pro forma basis, revenues and net income attributable to Hitachi, Ltd. stockholders using anassumed acquisition date for Pentaho of April 1, 2015 would not differ materially from the amounts
reported in the condensed quarterly consolidated financial statements for the six months ended
September 30, 2015.

F-13

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015
(6) Fair Value of Financial Instruments(a) Fair Value Measurements
The following methods and assumptions are used to measure the fair value of financial assets andliabilities.
Cash and cash equivalents, Short-term loans receivable, Short-term debt, Other payables andTrade payables
The carrying amount approximates the fair value because of the short maturity of these instruments.
Trade receivables
Fair value is measured by the present value of future cash flows discounted by risk-free rates after
considering early settlements, cancellation and the balance of doubtful accounts, for each type ofreceivable, class of receivable based on collection records and term of collection.
Lease receivables
Fair value is based on the present value of lease payments receivable based on years to maturity, using
discount rates that reflect the time to maturity and credit risk.
Investments in securities and Other financial assets
Investment securities with quoted market prices are estimated using the quoted share prices. In theabsence of an active market for investment securities, quoted prices for similar investment securities,
quoted prices associated with transactions that are not distressed 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 suchinvestments. 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 rate applicable 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 in inactive markets, or based on models using interest rate curves and forward andspot 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 byfinancial institutions and other available information.
Fair values of subordinated interests and beneficiary interests in trust that are retained in transactions oftransferring financial assets are estimated by discounting future cash flows based on economic
assumptions including expected rate of credit loss and discount rate since significant inputs for
estimation of the fair value are unobservable.
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 the market 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 thatare 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-14

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015
Contract guarantee deposits are financial liabilities received from some customers and other parties as acredit enhancement to trade and lease receivables, and normally returned after the underlying assets are
fully collected. The fair value of contract guarantee deposits is measured by discounting the sum of theprincipals over the time to the contractual return dates, using the risk-free discount rate.
(b) Financial Instruments Measured at Amortized Cost
The carrying amounts and estimated fair values of the financial instruments measured at amortized cost
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.

AssetsTrade receivables [1]Lease receivables
Investments in securities and otherfinancial assets [2]Debt securities
Long-term loans receivable
Liabilities
Long-term debt [3]Lease obligations
Bonds
Long-term debt
Other financial liabilities
Contract guarantee deposits

September 30, 2015
Carrying
Estimatedamounts
fair values

Millions of yen
March 31, 2015
Carrying
Estimatedamounts
fair values

3,368,300
1,041,072

3,383,889
1,074,345

3,556,315
1,017,973

3,574,933
1,050,232

81,93567,643

81,96068,32085,72585,48185,75887,37946,707803,250
1,879,372

46,441
809,788
1,900,354

50,311
797,510
1,731,834

50,035805,668
1,747,654

37,85436,72836,88235,567[1] Trade receivables are included in Trade receivables and Investments in securities and other financial
assets in the condensed quarterly consolidated statements of financial position.
[2] Investments in securities and other financial assets are included in Other current assets andInvestments in securities and other financial assets in the condensed quarterly consolidated statementsof financial position.
[3] Long-term debt is included in Current portion of long-term debt and Long-term debt in thecondensed quarterly consolidated statements of financial position.
(c)Financial Instruments Measured at Fair Value in Condensed Quarterly Consolidated
Statements of Financial Position
Financial instruments measured at fair value on a recurring basis after the initial recognition are classified
into three levels of the fair 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 inputthat is significant with the lowest level in the fair value measurement as a whole.

F-15

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015
Transfers between levels are deemed at the beginning of each quarter period.
The following tables present the assets and liabilities that are measured at fair value on a recurring basis.
September 30, 2015
Class of financial instruments
FVTPL financial assets:
Investments in securities and otherfinancial assets [1]Equity securities
Debt securities
Derivatives
FVTOCI financial assets:
Investments in securities and otherfinancial assets [1]Equity securities
Total financial assets at fair value
FVTPL financial liabilities:
Other financial liabilities
Derivatives
Total financial liabilities at fair value
March 31, 2015
Class of financial instruments
FVTPL financial assets:
Investments in securities and otherfinancial assets [1]Equity securities
Debt securities
Derivatives
FVTOCI financial assets:
Investments in securities and otherfinancial assets [1]Equity securities
Total financial assets at fair value
FVTPL financial liabilities:
Other financial liabilities
Derivatives
Total financial liabilities at fair value

Level 1

Level 2Millions of yen
Total

Level 316
11,504-

4
7,621
14,9001,020
45,8586,061

1,040
64,983
20,961

332,694344,214206
22,731

111,634
164,573444,534
531,518-

108,546
108,546-

108,546
108,546

Level 1

Level 2Millions of yen
Total

Level 3

2,624
12,665-

7,807
15,478

1,799
57,299-4,423
77,771
15,478392,977
408,266

1,413
24,698110,833
169,931505,223
602,895-

104,730
104,730-

104,730
104,730[1] Investments in securities and other financial assets are included in Other current assets andInvestments in securities and other financial assets in the condensed quarterly consolidated statementsof financial position.

F-16

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015
The following tables present the changes in Level 3 instruments measured on a recurring basis for thesix months ended September 30, 2015 and 2014.
Millions of yen

September 30, 2015
Level 3 financial assets
Balance at beginning of period
Loss in profit or loss [1]Gain in OCI [2]Purchases
Sales and redemption
Acquisitions and divestitures
Transfer from Level 3 [3]OtherBalance at end of period
Unrealized gain (loss) relating tofinancial assets still held at end of
period [4]Equitysecurities
112,632
(423)
5,915
446
(1,144)295(4,874)(193)
112,654Debt
securities
57,299(438)
1,409(13,031)261
358
45,858

5,392

(66)

Equitysecurities
108,125
(35)
2,470
1,427
(551)
247
(71)
111,612Debt
securities
82,006(5,042)
1,386(7,257)154
255
71,502

2,977

(16)

Derivatives
6,061
6,061

169,931
(861)
5,915
7,916
(14,175)556(4,874)
165
164,573-

5,326

Millions of yen

September 30, 2014
Level 3 financial assets
Balance at beginning of period
Loss in profit or loss [1]Gain in OCI [2]Purchases
Sales and redemption
Acquisitions and divestitures
Other
Balance at end of period
Unrealized gain (loss) relating tofinancial assets still held at end of
period [4]Total

Derivatives

Total

-

190,131(5,077)2,470
2,813(7,808)401
184
183,114-2,961[1] Loss in profit or loss related to FVTPL financial assets is included in Financial expenses in thecondensed quarterly consolidated statements of profit or loss.
[2] Gain in OCI related to FVTOCI financial assets is included in Net changes in financial assets
measured at fair value through OCI in the condensed quarterly consolidated statements ofcomprehensive income.
[3] Transfer from Level 3 for the six months ended September 30, 2015 is mainly the result of aninvestee being listed on the stock market.
[4] Unrealized gain (loss) related to financial assets still held at the end of period are included in
Financial income and Financial expenses in the condensed quarterly consolidated statements of profit
or loss, and Net changes in financial assets measured at fair value through OCI in the condensed
quarterly consolidated statements of comprehensive income.

F-17

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015
Valuation techniques and unobservable inputs used for measuring financial instruments categorized as
Level 3 on a recurring basis as of September 30 and March 31, 2015 are as follows:
September 30, 2015
Level 3 financial instruments
Subordinated interests and beneficiaryinterests in trusts that are retained
relating to securitization of financial
assetsMarch 31, 2015
Level 3 financial instruments
Subordinated interests and beneficiaryinterests in trusts that are retained
relating to securitization of financial
assetsFair
value
32,738Valuationtechnique
DCF

Fair
value
43,391

Valuationtechnique
DCF

Unobservable inputs

Millions of yen
Range

Discount rate
Expected rate of credit
loss of the entire
transferred financial assets
Unobservable inputs

0.13-1.13%
0.15-0.36%

Millions of yen
Range

Discount rate
Expected rate of credit
loss of the entire
transferred financial assets

0.14-0.88%
0.15-0.36%

The impact on the fair value is not material if different amounts are used as unobservable inputs inestimating the fair value of subordinated interests and beneficiary interests in trusts that are retained
relating to securitization of financial assets. Similarly, the effect of changing unobservable inputs toreasonably possible alternative assumptions is not material.
Fair values are measured by the Finance Department of the Company in accordance with theCompany’s policies and procedures. Valuation models are determined so that they reflect each financial
instrument’s nature, characteristics and risks most appropriately. The Finance Department continually
examines changes in important inputs that could affect the fair value. In case the fair value of afinancial instrument was significantly impaired, the Department administrator reviews and approves theimpairment loss.

F-18

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015(7)

Dividends
Dividends paid on common stock for the six months ended September 30, 2015 are as follows:

Decision
The Board of Directors
on May 14, 2015

Cash dividends(millions of yen) Appropriation from28,971Retained earnings

Cashdividends
per share(yen)

Record date

6.0

March 31, 2015

Effective dateJune 1, 2015

Dividends on common stock whose record date falls in the six months ended September 30, 2015 andthe effective date falls in the next period are as follows:

Decision
The Board of Directors
on Oct 28, 2015

Cash dividends(millions of yen) Appropriation from28,970Retained earnings

Cashdividends
per share
(yen)
6.0

Record date

Effective date

September 30, 2015

November 26, 2015

Dividends paid on common stock for the six months ended September 30, 2014 are as follows:

Decision
The Board of Directors
on May 12, 2014

Cash dividends(millions of yen) Appropriation from26,559Retained earnings

Cashdividends
per share(yen)

Record date

5.5

March 31, 2014

Effective dateJune 2, 2014

Dividends on common stock whose record date falls in the six months ended September 30, 2014 andthe effective date falls in the next period are as follows:

Decision
The Board of Directors
on October 29, 2014

Cash dividends(millions of yen) Appropriation from28,973Retained earnings

F-19

Cash
dividends
per share
(yen)
6.0

Record date

Effective date

September 30, 2014

November 26, 2014

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015(8) Other Income and Expenses
2015
Net loss on sales and disposal of fixed assets
Impairment losses
Net gain on business reorganization and others
Restructuring charges
Expenses related to competition law and others(3,299)(1,585)30,085(25,272)(4,653)

Millions of yen
2014(11,083)(2,142)4,035(2,446)(7,723)

Impairment losses are mainly recognized on property, plant and equipment, investment properties andintangible assets. Net gain on business reorganization and others include gains and losses related toobtaining and losing control of investees and gains and losses related to obtaining and losing significant
influence over investees.
(9) Financial Income and Expenses
2015
Dividends received
Net loss on FVTPL financial assets
Exchange gain (loss)

4,438
(607)
(15,051)

Dividends are from FVTOCI financial assets.

F-20

Millions of yen
2014
4,835
(2,570)3,345

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015(10) Discontinued Operations
The Company classified the part of thermal power generation system business which was not transferredto Mitsubishi Hitachi Power Systems, Ltd. for business integration in the thermal power generation
systems business with Mitsubishi Heavy Industries, Ltd. but was operated by the Company and certain
subsidiaries as discontinued operations in the condensed quarterly consolidated statements of profit orloss.
Profit or loss and cash flows from the discontinued operations for the six months ended September 30,
2015 and 2014 are as follows:
Millions of yen
2015
2014
Profit or loss from discontinued operations
Revenues
46
13,852
Cost of sales and expenses(11,804)(30,164)
Loss from discontinued operations, before taxes(11,758)(16,312)
Income taxes(38)
Loss from discontinued operations(11,758)(16,350)
Millions of yen
2014

2015
Cash flows from discontinued operations
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities(1,833)
20
1,597

F-21

(18,574)
1,576
18,350Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015(11) Earnings Per Share (EPS) Information
The computations of net income attributable to Hitachi, Ltd. stockholders used to derive basic anddiluted EPS for the six months ended September 30, 2015 and 2014 are as follows:
Six months ended September 30
Number of shares
2014

2015
Weighted average number of shares on which basic
EPS is calculated
Effect of dilutive securities
Number of shares on which diluted EPS is
calculated

4,828,461,350-

4,828,944,283-

4,828,461,350

4,828,944,283

2015

Millions of yen
2014

Net income from continuing operations,
attributable to Hitachi, Ltd. stockholders
Basic
Effect of dilutive securities
Other
DilutedNet loss from discontinued operations,
attributable to Hitachi, Ltd. stockholders
Basic
Effect of dilutive securities
Other
Diluted
Net income attributable to Hitachi, Ltd. stockholders
Basic
Effect of dilutive securities
Other
Diluted109,349

133,981(116)
109,233(90)
133,891(11,758)(16,350)(11,758)(16,350)

97,591

117,631(116)
97,475(90)
117,541
Yen

2015
EPS from continuing operations,
attributable to Hitachi, Ltd. stockholders
Basic
DilutedEPS from discontinued operations,
attributable to Hitachi, Ltd. stockholders
Basic
DilutedEPS attributable to Hitachi, Ltd. stockholders
Basic
Diluted

F-22

2014
22.65
22.62

27.75
27.73

(2.44)(2.44)(3.39)(3.39)

20.21
20.19

24.36
24.34

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015
The computations of net income attributable to Hitachi, Ltd. stockholders used to derive basic anddiluted EPS for the three months ended September 30, 2015 and 2014 are as follows:
Three months ended September 30
Number of shares
2014

2015
Weighted average number of shares on which basic
EPS is calculated
Effect of dilutive securities
Number of shares on which diluted EPS is
calculated

4,828,401,711-

4,828,884,755-

4,828,401,711

4,828,884,755

2015

Millions of yen
2014

Net income from continuing operations,
attributable to Hitachi, Ltd. stockholders
Basic
Effect of dilutive securities
Other
DilutedNet loss from discontinued operations,
attributable to Hitachi, Ltd. stockholders
Basic
Effect of dilutive securities
Other
Diluted
Net income attributable to Hitachi, Ltd. stockholders
Basic
Effect of dilutive securities
Other
Diluted52,78878,815(20)
52,768(30)
78,785(10,155)(3,048)(10,155)(3,048)42,63375,767(20)
42,613(30)
75,737Yen

2015
EPS from continuing operations,
attributable to Hitachi, Ltd. stockholders
Basic
DilutedEPS from discontinued operations,
attributable to Hitachi, Ltd. stockholders
Basic
DilutedEPS attributable to Hitachi, Ltd. stockholders
Basic
Diluted

F-23

2014
10.93
10.93

16.32
16.32

(2.10)(2.10)(0.63)(0.63)

8.83
8.83

15.69
15.68

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015(12) Contingencies
In December 2006, the Company and a subsidiary in Europe received requests for information from theEuropean Commission in respect of alleged antitrust violations relating to liquid crystal displays.
In November 2007, a subsidiary in the U.S.A. received a grand jury subpoena in connection with theinvestigation conducted by the Antitrust Division of the U.S. Department of Justice in respect of alleged
antitrust violations relating to cathode ray tubes. In addition, in November 2007, two subsidiaries in
Asia and in Europe received requests for information from the European Commission. Furthermore, inNovember 2007, a subsidiary in Canada received requests for information from the CanadianCompetition Bureau.
In June 2009, a subsidiary in Japan received a grand jury subpoena in connection with the investigation
conducted by the Antitrust Division of the U.S. Department of Justice and received requests for
information from the European Commission in respect of alleged antitrust violations relating to opticaldisk drives. In November 2011, the subsidiary in Japan paid a fine in relation to the investigation fromthe Antitrust Division of the U.S. Department of Justice. In July 2012, the subsidiary in Japan received astatement of objections from the European Commission in respect of alleged antitrust violations. In
October 2015, the European Commission announced the amount of the fine for the subsidiary in respectof alleged antitrust violations. Two subsidiaries in Japan and in Korea made provision for estimated loss
on a reasonable basis.
In July 2011, a subsidiary in the U.S.A. was investigated by and received a grand jury subpoena fromthe Antitrust Division of the U.S. Department of Justice, the Company and a subsidiary in Europe
received requests for information from the European Commission, and a subsidiary in Canada received
requests for information from the Canadian Competition Bureau, all in respect of alleged antitrust
violations relating to automotive equipment. In November 2013, a subsidiary in Japan, which had been
also primarily responsible for responding to the investigation from the Antitrust Division of the U.S.
Department of Justice, paid a fine. The subsidiary in Japan made provision for estimated loss on areasonable basis.
In June 2014, a subsidiary in Japan was investigated by the Japan Fair Trade Commission in respect ofalleged antitrust violations relating to capacitors. The subsidiaries in Europe, the U.S.A., and others arebeing investigated by competition authorities in each country or region, all in respect of alleged antitrust
violations relating to capacitors. In November 2015, the subsidiaries in Japan received a statement ofobjections from the European Commission in respect of the alleged antitrust violations. The subsidiaryin Japan made provision for estimated loss on a reasonable basis.
The Company, its subsidiaries and associates have cooperated with the competent authorities.
Depending upon the outcome of these matters, fines or surcharge payments, the amount of which is
uncertain, may be imposed on them. Also, in connection with pending and settled antitrust violations,civil disputes, including class action lawsuits, involving the Company and some of these companies
have arisen in a number of countries, including in the U.S.A. and Canada. An amount, which wasconsidered to be a reasonable estimate in respect of these claims, was accrued for the potential losses inrelation to certain of these civil disputes.
In August 2012, a subsidiary in Europe received a complaint filed by a customer in Europe seeking
compensation for consequential losses of EUR 1,058 million (¥142,878 million), additional costs andinterest allegedly incurred by the delay in the construction process of a power plant against, jointly andseverally, the Company, the subsidiary in Europe, a consortium including the Company and thesubsidiary in Europe, and two other companies. In addition, in October 2013, the subsidiary in Europe
received an additional complaint requesting compensation for consequential losses of EUR 239 million(¥32,324 million). Although the Company, the subsidiary in Europe and the consortium will vigorously
F-24Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015
defend themselves against this lawsuit, there can be no assurance that they will not be held liable forany amounts claimed.
In December 2013, the Company, a subsidiary in Europe and a consortium consisting of the Company
and the subsidiary in Europe, jointly and severally received a request from a customer in Europe to refera dispute to arbitration seeking compensation for EUR 606 million (¥81,899 million) including
consequential losses allegedly incurred by the delay in the construction process of a power plant. As of
September 30, 2015, the amount of a request for compensation from the customer was changed to EUR
637 million (¥85,999 million). Although the Company, the subsidiary in Europe, and the consortium
consisting of the Company and the subsidiary in Europe, will vigorously defend themselves against thisclaim, there can be no assurance that they will not be held liable for any amounts claimed.
In November 2014, the Company received a compensation claim from a customer in Japan for theconsequential loss allegedly incurred by the delay in an operation system development. In March 2015,
the dispute was settled, and in June and October 2015, the Company paid the settlement.
In June 2015, the Company, a subsidiary, associates, joint ventures in Asia, and one other entity
received a summons from a partner in the joint ventures involving the Company and the subsidiarydemanding an injunction against certain competing business operations claiming these are in breach of
the joint venture agreements. The Company, the subsidiary, the associates, the joint ventures, and one
other entity will vigorously defend themselves against this claim.
The Company and its subsidiaries execute a number of business reorganizations, including mergers,
acquisitions and divestitures. Contracts for these reorganizations include clauses for transaction priceadjustments subsequent to the reorganizations. The Company had reasonably estimated a loss for the
price adjustments in some business reorganizations and accrued liabilities.
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 theadverse effect, if any, of many of these proceedings. Accordingly, except as otherwise stated, no accrualfor potential loss has been made. 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 the ordinary course of business and have not been finally adjudicated. These
actions when ultimately concluded and determined will not, in the opinion of management, have amaterial adverse effect on the consolidated financial position or results of operations of the Company
and subsidiaries.

F-25

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2015(13) Approval of Condensed Quarterly Consolidated Financial Statements
The condensed quarterly consolidated financial statements were approved on November 12, 2015 by
Toshiaki Higashihara, President and COO of the Company.

F-26

[Cover][Document Filed]

Confirmation Letter[Applicable Law]

Article 24-4-8, Paragraph 1 of the Financial Instruments and Exchange Act ofJapan[Filed with]

Director, Kanto Local Finance Bureau[Filing Date]

November 12, 2015

[Company Name]

Kabushiki Kaisha Hitachi Seisakusho[Company Name in English] Hitachi, Ltd.
[Title and Name ofToshiaki Higashihara, President & COO

Representative][Name and title of CFO]

Toyoaki Nakamura, Executive Vice President and Executive Officer[Address of Head Office]6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo[Place Where Available forTokyo Stock Exchange, Inc.

Public Inspection](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. Toshiaki Higashihara, President & COO, and Mr. Toyoaki Nakamura, Executive Vice President
and Executive Officer, confirmed that statements contained in the Quarterly Report for the second quarterof 147th fiscal year (from July 1, 2015 to September 30, 2015) were adequate under the Financial
Instruments and Exchange Act.
2. Special Notes
None.

A-2