[Translation]

Quarterly Report(The First Quarter of 153rd Business Term)
From April 1, 2021 to June 30, 2021

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

Hitachi, Ltd.

[Cover][Document Filed]

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

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

Director, Kanto Local Finance Bureau[Filing Date]

August 5, 2021

[Fiscal Year]

The First Quarter of 153rd Business Term (from April 1, 2021 to June 30, 2021)[Company Name]

Kabushiki Kaisha Hitachi Seisakusho[Company Name in English]

Hitachi, Ltd.

[Title and Name of Representative]

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

03-3258-1111[Contact Person]

Takahiro Yamada, Manager, Legal Division[Contact Address]

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

03-3258-1111[Contact Person]

Takahiro Yamada, Manager, Legal Division[Place Where Available for PublicTokyo Stock Exchange, Inc.

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 havetruncated amounts of less than one million or one hundred million, as the case may be. Accordingly, the total of figures presented incolumns or otherwise may not equal the total of the individual items. We have rounded all percentages to the nearest percent, onetenth of one percent or one-hundredth of one percent, as the case may be.
References in this document to the “Financial Instruments and Exchange Act” are to the Financial Instruments and Exchange Act
of Japan and other laws and regulations amending and/or supplementing the Financial Instruments and Exchange Act of Japan.

Contents
Part I Information on the Company ………………………………………………………………………………………………

1

I. Overview of the Company ……………………………………………………………………………………………………
1. Key Financial Data ………………………………………………………………………………………………………

1
1

2. Description of Business ……………………………………………………………………………………………………
II. Business Overview …………………………………………………………………………………………………………

2
3

1. Risk Factors ………………………………………………………………………………………………………………
2. Management’s Discussion and Analysis of Consolidated Financial Condition, Results of Operations and Cash Flows …

33

3. Material Agreements, etc. …………………………………………………………………………………………………
III. Information on the Company ………………………………………………………………………………………………

8
9

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

99(2) Information on the stock acquisition rights, etc. ………………………………………………………………………
(3) Information on moving strike convertible bonds, etc. …………………………………………………………………

99(4) Changes in the total number of issued shares and the amount of common stock and other …………………………
(5) Major shareholders ……………………………………………………………………………………………………

99(6) Information on voting rights …………………………………………………………………………………………
2. Changes in Senior Management …………………………………………………………………………………………

10
10

IV. Financial Information ……………………………………………………………………………………………………… 11
Part II Information on Guarantors, etc. for the Company ………………………………………………………………………… 11[Condensed Quarterly Consolidated Financial Statements] ……………………………………………………………………… F1[Confirmation Letter] ……………………………………………………………………………………………………………… A1

Part I Information on the Company
I. Overview of the Company
1. Key Financial Data
Consolidated financial data, etc.
(Millions of yen, unless otherwise stated)
Three months ended June Three months ended June30, 2020
30, 2021
Revenues

Year ended
March 31, 2021

1,594,277

2,367,437

8,729,196

Income from continuing operations, before
income taxes

339,709

166,855

844,443

Net income attributable to Hitachi, Ltd.
stockholders

223,251

122,231501,613242,291

127,022838,237

Total Hitachi, Ltd. stockholders’ equity

3,036,533

3,594,003

3,525,502

Total equity

3,700,850

4,503,107

4,458,232

Total assets

10,160,516

11,899,746

11,852,853

231.13126.49519.29230.86126.33518.51

29.9

30.2

29.7

Net cash provided by operating activities

153,796

137,071793,128

Net cash provided by (used in) investing
activities

357,457(7,054)(458,840)

526,681

10,698(184,838)

1,851,083

1,161,989

1,015,886

Comprehensive income attributable to Hitachi,Ltd. stockholders

Earnings per share attributable to Hitachi, Ltd.
stockholders, basic (yen)Earnings per share attributable to Hitachi, Ltd.
stockholders, diluted (yen)Total Hitachi, Ltd. stockholders’ equity ratio (%)

Net cash provided by (used in) financing
activities
Cash and cash equivalents at end of period(Notes) 1. Hitachi's consolidated financial statements have been prepared in conformity with the International Financial ReportingStandards (“IFRS”) as issued by the International Accounting Standards Board.
2. Revenues do not include the consumption tax, etc.

1

2. Description of Business
There were no material changes in principal businesses of Hitachi during the three months ended June 30, 2021. The HitachiGroup is comprised of the Company, 865 consolidated subsidiaries, and 274 equity-method associates and joint-ventures.
Changes in Business Unit (BU) of the Company and principal affiliated companies during the three months ended June 30,
2021 were as follows.
(As of June 30, 2021)
BU and principal affiliated companies
Main products and services
BU
Affiliated companies
IT[Consolidated subsidiaries](Change in company name) (Note 1)
Hitachi Global Digital Holdings LLC(New) (Note 2)[Consolidated subsidiaries]
EnergyPower Grid BU(Change in company name) (Note 3)
Hitachi Energy Ltd
Automotive Systems[Consolidated subsidiaries](Reclassification of segment) (Note(Reclassification of segment) (Note 4)
4)
Hitachi Astemo, Ltd.
Automotive Systems (Powertrain,
Hitachi Astemo Americas, Inc.
Chassis, Advanced Driver
Assistance, Motorcycle)(Notes) 1. Hitachi Global Digital Holdings Corporation changed its name to Hitachi Global Digital Holdings LLC on April 1, 2021.
2. Power Grid BU was newly established on April 1, 2021.
3. Hitachi ABB Power Grids Ltd changed its name to Hitachi Energy Ltd on June 30, 2021.
4. Hitachi Astemo, Ltd., Hitachi Astemo Americas, Inc. and their main products and services, Automotive Systems, werespun off from the Smart Life segment to the Automotive Systems segment newly established on April 1, 2021.
5. In addition to the table above, Hitachi Capital Corporation, which was the major equity-method associates of theCompany, merged with Mitsubishi UFJ Lease & Finance Company Limited (currently Mitsubishi HC Capital Inc.) andceased to be an equity-method affiliate of the Company on April 1, 2021.

2II. Business Overview
1. Risk Factors
There were no new risk factors recognized during the three months ended June 30, 2021.
There were no material changes in the risk factors stated in the Annual Securities Report for the 152nd business term
pursuant to the Financial Instruments and Exchange Act of Japan.
2. Management’s Discussion and Analysis of Consolidated Financial Condition, Results of Operations and Cash Flows(1) Analysis of Results of Operations
Results of Operations
The results of operations in the three months ended June 30, 2021 were as follows.
Revenues increased 48% to 2,367.4 billion yen, as compared with the three months ended June 30, 2020, due mainly toincreased in revenues owing to the recovery of market conditions worsened by the impact of COVID-19 (the new coronavirus
infection), the acquisition of the power grid business from ABB Ltd and the management integration related to Hitachi Astemo,Ltd. (the management integration among Hitachi Automotive Systems, Ltd., Keihin Corporation, Showa Corporation and Nissin
Kogyo Co., Ltd).
Cost of sales increased 52% to 1,790.6 billion yen and the ratio of cost of sales to revenues increased 2% to 76%, ascompared with the three months ended June 30, 2020, respectively. Gross profit increased 39% to 576.7 billion yen, as comparedwith the three months ended June 30, 2020.
Selling, general and administrative expenses (“SG&A”) increased 25% to 446.2 billion yen, as compared with the threemonths ended June 30, 2020. The ratio of SG&A to revenues decreased 3% to 19%, as compared with the three months ended
June 30, 2020.
Adjusted operating income (presented as revenues less cost of sales as well as SG&A) increased 72.1 billion yen to 130.4
billion yen, as compared with the three months ended June 30, 2020.
Other income decreased 247.0 billion yen to 37.1 billion yen, as compared with the three months ended June 30, 2020, due
mainly to the gains on business reorganization and others posted in the three months ended June 30, 2020 by selling shares ofHitachi Chemical Company, Ltd. Other expenses decreased 4.2 billion yen to 10.8 billion yen, as compared with the three months
ended June 30, 2020.
Financial income (excluding interest income) increased 0.3 billion yen to 2.5 billion yen and financial expenses (excludinginterest charges) increased 1.7 billion yen to 2.5 billion yen, as compared with the three months ended June 30, 2020,
respectively.
Share of profits of investments accounted for using the equity method increased 0.3 billion yen to 11.8 billion yen, as
compared with the three months ended June 30, 2020.
EBIT (earnings before interest and taxes, which is presented as income from continuing operations, before income taxes lessinterest income plus interest charges) decreased 171.7 billion yen to 168.6 billion yen, as compared with the three months ended
June 30, 2020.
Interest income increased 0.9 billion yen to 4.6 billion yen and interest charges increased 2.0 billion yen to 6.4 billion yen,
as compared with the three months ended June 30, 2020, respectively.
Income from continuing operations, before income taxes decreased 172.8 billion yen to 166.8 billion yen, as compared withthe three months ended June 30, 2020.
Income taxes decreased 82.9 billion yen to 29.9 billion yen, as compared with the three months ended June 30, 2020.
Net income decreased 89.5 billion to 136.9 billion yen, as compared with the three months ended June 30, 2020.
Net income attributable to non-controlling interests increased 11.4 billion yen to 14.7 billion yen, as compared with the threemonths ended June 30, 2020.
As a result of the foregoing, net income attributable to Hitachi, Ltd. stockholders decreased 101.0 billion yen to 122.2 billion
yen, as compared with the three months ended June 30, 2020.
Operations by Segment
The following is an overview of results of operations by segment. Revenues for each segment include intersegment
transactions. Effective from April 1, 2021, the automotive systems business, which is composed of Hitachi Astemo, Ltd. and its
affiliated companies, was spun off from the Smart Life segment as the Automotive Systems segment. Accordingly, the amounts
previously reported for the three months ended June 30, 2020 have been restated in conformity with the new segments.

3

(IT)
Revenues increased 3% to 442.8 billion yen, as compared with the three months ended June 30, 2020, due mainly to thegrowth of Lumada business.
Adjusted operating income increased 5.3 billion yen to 43.6 billion yen, as compared with the three months ended June 30,
2020, due mainly to increased revenues and improved cost structure.
EBIT increased 6.0 billion yen to 44.1 billion yen, as compared with the three months ended June 30, 2020, due mainly toincreased adjusted operating income.
(Energy)
Revenues increased 352% to 336.1 billion yen, as compared with the three months ended June 30, 2020, due mainly toincreased revenues by acquiring the power grid business from ABB Ltd.
Adjusted operating income worsened 4.5 billion yen to loss of 2.4 billion yen, as compared with the three months ended
June 30, 2020, due mainly to posting amortization of intangible assets and structural reform expenses related to the acquisition of
the power grid business from ABB Ltd. The decrease was partially offset by increased income due to the acquisition.
EBIT worsened 4.5 billion yen to loss of 1.5 billion yen as compared with the three months ended June 30, 2020, due mainly
to decreased adjusted operating income.
(Industry)
Revenues increased 13% to 186.9 billion yen, as compared with the three months ended June 30, 2020, due mainly toincreased revenues with the recovery of market conditions and higher sales at JR Technology Group, LLC.
Adjusted operating income increased 7.8 billion yen to 9.6 billion yen, as compared with the three months ended June 30,
2020, due mainly to increased revenues and improved profitability.
EBIT increased 5.9 billion yen to 10.3 billion yen as compared with the three months ended June 30, 2020, due mainly toincreased adjusted operating income.
(Mobility)
Revenues increased 43% to 354.7 billion yen, as compared with the three months ended June 30, 2020, due mainly to the
expansion of business for China in the building systems business, the recovery of market conditions in the railway systems
business as well as the impact of foreign exchange.
Adjusted operating income increased 2.7 billion yen to 21.9 billion yen, as compared with the three months ended June 30,
2020, due mainly to increased revenues.
EBIT increased 23.4 billion yen to 43.4 billion yen, as compared with the three months ended June 30, 2020, due mainly toincreased adjusted operating income as well as the gains by selling a part of shares of Agility Trains East (Holdings) Limited
stock.
(Smart Life)
Revenues decreased 9% to 266.5 billion yen, as compared with the three months ended June 30, 2020, due mainly to theimpact of sale of diagnostic imaging-related business.
Adjusted operating income decreased 3.2 billion yen to 20.2 billion yen, as compared with the three months ended June 30,
2020, due mainly to decreased revenues.
EBIT increased ¥0.1 billion yen to 26.3 billion yen, as compared with the three months ended June 30, 2020, due mainly toincreased profit of equity-method associates, despite decreased adjusted operating income.
(Automotive Systems)
Revenues increased 250% to 382.5 billion yen, as compared with the three months ended June 30, 2020, due mainly to the
management integration related to Hitachi Astemo, Ltd. and the recovery of market conditions.
Adjusted operating income improved 33.7 billion yen to 12.1 billion yen, as compared with the three months ended June 30,
2020, due mainly to increased revenues.
EBIT improved 40.7 billion yen to 12.8 billion yen, as compared with the three months ended June 30, 2020, due mainly toincreased adjusted operating income.
(Hitachi Construction Machinery)
Revenues increased 34% to 228.1 billion yen, as compared with the three months ended June 30, 2020, due mainly to therecovery of market conditions and the impact of foreign exchange.
Adjusted operating income increased 8.8 billion yen to 11.5 billion yen, as compared with the three months ended June 30,
2020, due mainly to increased revenues.
EBIT increased 9.9 billion yen to 12.3 billion yen, as compared with the three months ended June 30, 2020, due mainly toincreased adjusted operating income.

4

(Hitachi Metals)
Revenues increased 47% to 226.8 billion yen, as compared with the three months ended June 30, 2020, due mainly to therecovery of market conditions, including an increase in demand for products for automobile.
Adjusted operating income improved 15.8 billion yen to 8.5 billion yen, as compared with the three months ended June 30,
2020, due mainly to increased revenues.
EBIT improved 11.3 billion yen to 4.6 billion yen, as compared with the three months ended June 30, 2020, due mainly toincreased adjusted operating income.
(Others)
Revenues increased 8% to 106.4 billion yen, as compared with the three months ended June 30, 2020.
Adjusted operating income increased 3.5 billion to 5.1 billion yen, and EBIT increased 1.0 billion yen to 5.4 billion yen, as
compared with the three months ended June 30, 2020, respectively.
Revenues by Market
Revenues in Japan increased 11% to 907.5 billion yen, as compared with the three months ended June 30, 2020, due mainly
to increased revenues in the Automotive Systems segment resulting from the management integration related to Hitachi Astemo,Ltd. and the recovery of market conditions, and in the Hitachi Metals, despite decreased revenues in the Smart Life sector owing
to the impact of selling diagnostic imaging-related business.
Overseas revenues increased 88% to 1,459.8 billion yen, as compared with the three months ended June 30, 2020, due
mainly to increased revenues in the Energy sector resulting from the acquisition of the power grid business from ABB Ltd, in the
Automotive Systems segment resulting from the management integration related to Hitachi Astemo, Ltd. and the recovery ofmarket conditions, and in the Mobility sector resulting from the expansion of business for China.
As a result, the ratio of overseas revenues to total revenues increased 13% to 62%, as compared with the three months ended
June 30, 2020.
(2) Analysis of Financial Condition and Cash Flows
Liquidity and Capital Resources
During the three months ended June 30, 2021, there were no major changes in the Company’s policies of maintaining
liquidity and ensuring funds, efforts for improvement in fund management efficiency, and ideas regarding funding sources andfundraising.
Cash Flows(Cash Flows from Operating Activities)
Net cash outflow from a change in trade payables in the three months ended June 30, 2021 decreased by 98.0 billion yen, as
compared with the three months ended June 30, 2020. However, net cash inflow from a change in trade receivables and contract
assets decreased by 114.6 billion yen and net cash outflow from a change in inventories increased by 26.1 billion yen as well as
income tax payment increased by 56.9 billion yen, as compared with the three months ended June 30, 2020, respectively.
As a result of the foregoing, net cash provided by operating activities was 137.0 billion yen in the three months ended June30, 2021, a decrease of 16.7 billion yen compared with the three months ended June 30, 2020.
(Cash Flows from Investing Activities)
Purchase of investments in securities and other financial assets (including investments in subsidiaries and investments
accounted for using the equity method) in the three months ended June 30, 2021 decreased by 12.7 billion yen, as compared withthe three months ended June 30, 2020. However, proceeds from sale of investments in securities and other financial assets(including investments in subsidiaries and investments accounted for using the equity method) in the three months ended June 30,
2021 decreased by 365.7 billion yen, as compared with the three months ended June 30, 2020, due mainly to the sale of shares ofHitachi Chemical Company, Ltd. in the three months ended June 30, 2020. Net amount of investments related to property, plantand equipment* was 86.1 billion yen in the three months ended June 30, 2021 and this net sum increased by 24.0 billion yen, as
compared with the three months ended June 30, 2020.
As a result of the foregoing, net cash used in investing activities was 7.0 billion yen in the three months ended June 30,
2021, as compared with 357.4 billion yen of net cash inflow in the three months ended June 30, 2020.
* The sum of the purchase of property, plant and equipment and the purchase of intangible assets, less the proceeds from sale ofproperty, plant and equipment, and intangible assets.

5

(Cash Flows from Financing Activities)
Net cash outflow related to purchase of shares of consolidated subsidiaries from non-controlling interests in the threemonths ended June 30, 2021 decreased by 407.3 billion yen, as compared with the three months ended June 30, 2020, due mainly
to the purchase of shares of Hitachi High-Tech Corporation in the three months ended June 30, 2020. Net cash inflow from achange in short-term debt in the three months ended June 30, 2021 decreased by 898.2 billion yen, as compared with the threemonths ended June 30, 2020. Furthermore, net cash outflow related to long-term debt** in the three months ended June 30, 2021
was 33.6 billion yen and this net sum increased by 5.4 billion yen, as compared with the three months ended June 30, 2020.
As a result of the foregoing, net cash provided by financing activities was 10.6 billion yen in the three months ended June30, 2021, a decrease of 515.9 billion yen compared with the three months ended June 30, 2020.
** The proceeds from long-term debt, less the payments on long-term debt.
As a result of the foregoing, cash and cash equivalents as of June 30, 2021 were 1,161.9 billion yen, an increase of 146.1
billion yen from March 31, 2021. Free cash flows, the sum of cash flows from operating and investing activities, were an inflow
of 130.0 billion yen in the three months ended June 30, 2021, a decrease of 381.2 billion yen compared with the three months
ended June 30, 2020.
Assets, Liabilities and Equity
The following is an overview of Hitachi’s assets, liabilities and equity as of June 30, 2021.
Total assets were 11,899.7 billion yen, an increase of 46.8 billion yen from March 31, 2021, due mainly to increases in cash
and cash equivalents resulting from increased short-term debt and in inventories.
Total interest-bearing debt, the sum of short-term debt and long-term debt, was 2,531.9 billion yen, an increase of 134.6
billion yen from March 31, 2021, due mainly to an increase in short-term debt.
Total Hitachi, Ltd. stockholders’ equity increased by 68.5 billion yen from March 31, 2021, to 3,594.0 billion yen. The ratioof total Hitachi, Ltd. stockholders’ equity to total assets was 30.2%, as compared with 29.7% as of March 31, 2021.
Non-controlling interests were 909.1 billion yen, a decrease of 23.6 billion yen from March 31, 2021.
Total equity was 4,503.1 billion yen, an increase of 44.8 billion yen from March 31, 2021. The ratio of interest-bearing debt
to total equity was 0.56, as compared with 0.54 as of March 31, 2021.
(3) Management Policy
There were no material changes in Hitachi’s management policy during the three months ended June 30, 2021.
(4) Challenges Hitachi Group Faces
1) Business and Financial Challenges Hitachi Group Faces
There were no material changes in Hitachi’s business and financial challenges during the three months ended June 30,
2021.
2) Fundamental Policy on the Conduct of Persons Influencing Decision on the Company’s Financial and Business Policies
There were no material changes in Hitachi’s fundamental policy during the three months ended June 30, 2021.
(5) Research and Development
There were no material changes in the research and development of the Hitachi Group (the Company and consolidated
subsidiaries) stated in the Annual Securities Report for the 152nd business term pursuant to the Financial Instruments andExchange Act of Japan. The Hitachi Group’s R&D expenditures in the three months ended June 30, 2021 were 75.4 billion yen,
3.2% of revenues. A breakdown of R&D expenditures by segment is shown below.
(Billions of yen)Segment

Three months ended
June 30, 2021

IT

12.1

Energy8.9

Industry

2.3

Mobility

7.6

Smart Life

10.5

Automotive Systems

20.2

Hitachi Construction Machinery

6.0

Hitachi Metals

3.0

Others0.4

Corporate Items

4.0
Total

75.4

6

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

Land[Area inthousandsof m2]

Smart Life

Buildings
andstructures

MachineryandvehiclesTools,
furnitureandfixtures

Right-of-use
Assets61,816

31,65030,276

17,789-7,655

165,983

22,340123,063

250,566

31,67525,134-69,748553,218

68,241

Total

Number of
employees

16,797(Note)[2,624]

Automotive

53,032

Systems(Note)

Constructionin progress

Other[10,360](Note) From April 1, 2021, the automotive systems business, which is composed of Hitachi Astemo, Ltd. and its affiliatedcompanies, was spun off from the Smart Life segment as the Automotive Systems segment. As a result, the book valueof the facilities in the Smart Life segment materially decreased.
(7) Plans for Capital Investment, Disposals of Property, Plants and Equipment, etc.
The Hitachi Group (the Company and consolidated subsidiaries) engages in diverse operations in Japan and overseas, andhas not decided on specific plans to newly install or expand each of facilities as of the end of the consolidated fiscal year andeach quarter of the consolidated fiscal year. For this reason, it discloses amounts of capital investment by segment.
The amount of capital investment for the fiscal year ending March 31, 2022 is updated as follows (new installation andexpansions, based on the amount recorded as tangible fixed assets and the investment property).
The amount of capital investment
for the fiscal year ending March 31, 2022
Segment(Billions of yen)
Initial Plan
Updated Plan
IT
55.0
60.0
EnergyIndustry

40.0
19.0

40.0
19.0

Mobility
Smart Life

26.0
38.0

26.0
38.0

Automotive Systems
Hitachi Construction Machinery

105.0
60.0

98.0
57.0

Hitachi Metals
Others

40.0
26.0

40.0
26.0

Corporate Items & Elimination
Total

24.0
433.0

24.0
428.0

(Notes) 1. The figures in the above table include the amount of the right-of-use assets and the investment property, each ofwhich is recorded as property, plant and equipment and other non-current assets, respectively.
2. These planned investments are expected to be mostly financed with the Hitachi Group’s own capital.
3. There are no plans to dispose or sell principal facilities, with the exception of disposing and selling facilities due toroutine upgrading.

7

(8) Forward-Looking Statements
Certain statements found in “2. Management’s Discussion and Analysis of Consolidated Financial Conditions, Operating
Results and Cash Flows” and other descriptions in this report may constitute “forward-looking statements” as defined in the U.S.
Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views withrespect to certain future events and financial performance and include any statement that does not directly relate to any historicalor current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar
expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on
currently available information and are subject to various risks and uncertainties that could cause actual results to differ
materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forwardlooking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue relianceshould not be placed on “forward-looking statements,” as such statements speak only as of the date of this report.
Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking
statement” and from historical trends include, but are not limited to:• exacerbation of social and economic impacts of the spread of COVID-19;• economic conditions, including consumer spending and plant and equipment investment in Hitachi’s major markets, as wellas levels of demand in the major industrial sectors Hitachi serves;• exchange rate fluctuations of the yen against other currencies in which Hitachi makes significant sales or in which Hitachi’s
assets and liabilities are denominated;• uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing;• uncertainty as to general market price levels for equity securities, declines in which may require Hitachi to write down
equity securities that it holds;• fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel,aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and components;• estimates, fluctuations in cost and cancellation of long-term projects for which Hitachi uses the percentage-of-completion
method to recognize revenue from sales;• increased commoditization of and intensifying price competition for products;• uncertainty as to Hitachi’s ability to attract and retain skilled personnel;• uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technologies on a timely
and cost-effective basis and to achieve market acceptance for such products;• fluctuations in demand of products, etc. and industry capacity;• uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in demandof products, etc., exchange rates and/or price of raw materials or shortages of materials, parts and components;• credit conditions of Hitachi’s customers and suppliers;• uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation
Business;• uncertainty as to the success of acquisitions of other companies, joint ventures and strategic alliances and the possibility of
incurring related expenses;• uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting
underperforming businesses and to strengthen competitiveness;• general socioeconomic and political conditions and the regulatory and trade environment of countries where Hitachi
conducts business, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect
restrictions by other nations on imports and differences in commercial and business customs including, without limitation,
contract terms and conditions and labor relations;• the potential for significant losses on Hitachi’s investments in equity-method associates and joint ventures;• uncertainty as to the success of cost structure overhaul;• the possibility of disruption of Hitachi’s operations by natural disasters such as earthquakes and tsunamis, the spread of
infectious diseases, and geopolitical and social instability such as terrorism and conflict;• uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its
subsidiaries or its equity-method associates and joint ventures have become or may become parties;• the possibility of incurring expenses resulting from any defects in products or services of Hitachi;• uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect
its confidential information or that of its customers;• uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property; and• uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its employee benefit-related costs.
The factors listed above are not all-inclusive and are in addition to other factors contained elsewhere in this report and inother materials published by Hitachi.
3. Material Agreements, etc.
No material agreements were entered into during the three months ended June 30, 2021.

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

Total number of shares authorized to
be issued (shares)

Common stock

2,000,000,000

Total

2,000,000,0002) Issued shares

Class

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

Number of sharesissued as of thefiling date (shares)(Note)(August 5, 2021)

Stock exchange on which
the Company is listed

Description

The number of shares per

Commonstock

968,234,877

968,234,877

Tokyo, Nagoya

Total

968,234,877

968,234,877-

one unit of shares is 100
shares.
-(Note) The "Number of shares issued as of the filing date" does not include shares issued upon exercise of stock acquisition rightsfrom August 1, 2021 to the filing date.
(2) Information on the stock acquisition rights, etc.
1) Details of stock option plans
Not applicable.
2) Details of other stock acquisition rights, etc.
Not applicable.
(3) Information on moving strike convertible bonds, etc.
Not applicable.
(4) Changes in the total number of issued shares and the amount of common stock and other

Date

June 15, 2021 (Note)

Change in
the total
number ofissued shares(shares)349,600

Balance of thetotal number ofissued shares(shares)

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

941

461,731941

179,697(Note) This increase is due to the issuance of new shares as restricted stock and restricted stock units compensation.
Issue price: 5,384 yen per share
Amount by which stated capital is to be increased: 2,692 yen per share
Allottees: 31 Executive officers of the Company and 35 Corporate officers of the Company(5) Major shareholders
Not applicable.

9(6) Information on voting rights
Information on voting rights as of March 31, 2021 is stated in this item because the Company does not identify the number ofvoting rights as of June 30, 2021 due to the lack of information on the number of the Company’s shares held by the entity which
the Company holds one quarter or more of total number of voting rights of such entity as of June 30, 2021.
1) Issued shares(As of March 31, 2021)
Classification

Number of voting
rightsNumber of shares (shares)

Description

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.)

Common stock

1,088,900

Shares with full voting right (others)

Common stock

964,415,100

Shares less than one unit

Common stock

2,381,277－－

967,885,277－－

Number of issued shares
Total number of voting rights

9,644,151

9,644,151－－－(Note) The “Shares with full voting right (others)” column includes 5,300 shares registered in the name of Japan Securities
Depository Center, Incorporated (account for managing stocks whose shareholders have not transferred titles) and 53 voting
rights for those shares.
2) Treasury stock, etc.
(As of March 31, 2021)

Name ofshareholder

Hitachi, Ltd.

Address

Number ofshares held
under own name(shares)

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

Number ofshares held
under thenames ofothers(shares)

Total shares
held (shares)

Ownership
percentage tothe total
number ofissued shares(%)

1,055,700－

1,055,700

0.11

Aoyama Special SteelCo., Ltd.

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

2,100

－

2,100

0.00

SAITA KOUGYOU
CO., LTD.

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

17,600－17,6000.00

Nitto Jidosha

3268, Nagaoka, Ibarakimachi,

Kiki K.K.

Higashiibaraki-gun, Ibaraki

10,500－10,500

0.00

3,000

－

3,000

0.00

1,088,900－

1,088,900

0.11Mizuho Co., Inc.
Total

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

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

10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.

11

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

6
7

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

7

June 30, 2021

March 31, 2021

1,161,989
2,492,827
1,797,475
328,749
247,387

1,015,886
2,734,476
1,653,395
328,153
211,3906,028,427

5,943,300

360,774
604,9322,401,683
1,166,273
958,521379,136

472,105
534,324
2,408,887
1,161,210
964,830
368,197

Total non-current assets
Total assets

5,871,319

5,909,553

11,899,746

11,852,853

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

563,923
327,089
328,872
1,516,184
555,840
1,000,091
387,017416,635
274,392
288,973
1,515,954
698,553
933,844468,579

4,679,016

4,596,930

1,640,981
430,773645,869

1,706,329
433,954
657,408

2,717,623

2,797,691

7,396,639

7,394,621

461,731
75,351
2,785,441
274,300(2,820)460,790
84,0402,710,604
273,561(3,493)3,594,003

3,525,502

909,104

932,7307
7

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

77

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

5,7
8

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

5,7

Total equity

4,503,107

4,458,232

Total liabilities and equity

11,899,746

11,852,853

See accompanying notes to condensed quarterly consolidated financial statements.

F-1

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

5,10
10
11
11

12

2021
2,367,437(1,790,670)
576,767(446,284)
37,149(10,833)
2,538(2,547)2020
1,594,277(1,179,428)
414,849(356,479)
284,154(15,126)
2,237
(754)

11,88011,537

168,670
4,639(6,454)
166,855(29,906)
136,949
0136,949

340,418
3,656(4,365)
339,709(112,881)
226,828(337)
226,491

122,231
14,718223,2513,240

126.49126.33

Yen
231.48231.21

126.49126.33231.13230.8613

13

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

Millions of yen

Net income

2021
136,9492020
226,491

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(15,348)(248)(15,596)

17,46239
17,501

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

6,462
6,714
10,69623,872

11,015
1,173(4,862)
7,326

8,276
145,225

24,827251,318

127,022
18,203242,291
9,027

Other comprehensive income (OCI)
Comprehensive income
Comprehensive income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests
See accompanying notes to condensed quarterly consolidated financial statements.
F-2

Condensed Quarterly Consolidated Statement of Changes in Equity
Three months ended June 30, 2021

Millions of yen
2021

Balance at beginning of period

Commonstock

Capitalsurplus(note 7)Retainedearnings(note 8)

Accumulated
othercomprehensive
income460,790

84,0402,710,604

273,561(3,493)

Treasurystock,
at cost

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

Total equity

3,525,502

932,730

4,458,232

Changes in equity
Reclassified into retained earnings

-

-

5,781

(5,781)

-

-

-

-

Net income--

122,231--

122,231

14,718

136,949

Other comprehensive income

-

-

-

4,791

-

4,791

3,485

8,276

Dividends to Hitachi, Ltd. stockholders--(53,175)--(53,175)-(53,175)

Dividends to non-controlling interests

-

-

-

-

-

-

(25,627)(25,627)

Acquisition of treasury stock

-

-

-

-

(61)

(61)

-

(61)

Sales of treasury stock

-

(301)

-

-

734

433

-

433

Issuance of new shares

941

941

-

-

-

1,882

-

1,882

-

(9,329)

-

1,729

-

(7,600)(16,202)(23,802)

Changes in non-controlling interests
Total changes in equity

941(8,689)74,837739

673

68,501(23,626)

44,875

Balance at end of period

461,731

75,351

2,785,441

274,300(2,820)3,594,003

909,104

4,503,107

Three months ended June 30, 2020

Millions of yen
2020

Balance at beginning of period

Commonstock

Capitalsurplus(note 5)Retainedearnings(note 8)

Accumulated
othercomprehensive
income459,862

464,795

2,296,208(57,070)(3,809)Treasurystock,
at cost

Total
Hitachi, Ltd.
stockholders’equityNoncontrollinginterests(note 5)

Total equity

3,159,986

1,106,753

4,266,739

Changes in equity
Reclassified into retained earnings

-

-

4,836

(4,836)

-

-

-

-

Net income--

223,251--

223,251

3,240

226,491

Other comprehensive income

-

-

-

19,040-19,0405,787

24,827

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

Dividends to non-controlling interests

-

-

-

-

-

-

(14,419)(14,419)

Acquisition of treasury stock

-

-

-

-

(15)

(15)

-

(15)

Sales of treasury stock

-

(203)

-

-

465

262

-

262

Issuance of new shares

928

928

-

-

-

1,856

-

1,856

-

(325,174)

-

5,638

-

(319,536)(437,044)(756,580)

Total changes in equity

928(324,449)

179,776

19,842450(123,453)(442,436)(565,889)

Balance at end of period

460,790

140,346

2,475,984(37,228)(3,359)3,036,533

664,3173,700,850

Changes in non-controlling interests

See accompanying notes to condensed quarterly consolidated financial statements.

F-3

Condensed Quarterly Consolidated Statement of Cash flows
Three months ended June 30, 2021 and 2020

Millions of yen
Note

Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization
Impairment losses
Income taxes
Share of (profits) losses of investments accounted for using the equity method
Financial income and expenses
Net (gain) loss on business reorganization and others(Gain) loss on sale of property, plant and equipment
Change in trade receivables and contract assets
Change in inventories
Change in trade payables
Change in accrued expenses
Change in retirement and severance benefits
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of property, plant and equipment, and intangible assets
Purchase of investments in securities and other financial assets(including investments in subsidiaries and investments accounted for using the equity method)
Proceeds from sale of investments in securities and other financial assets(including investments in subsidiaries and investments accounted for using the equity method)Other
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Change in short-term debt, net
Proceeds from long-term debt
Payments on long-term debt
Dividends paid to Hitachi, Ltd. stockholders
Dividends paid to non-controlling interests
Acquisition of common stock for treasury
Proceeds from sales of treasury stock
Purchase of shares of consolidated subsidiaries from non-controlling interests
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Change in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

See accompanying notes to condensed quarterly consolidated financial statements.

F-4

2021

2020

136,949

226,491

130,929
1,341
29,906(11,880)(723)(36,714)
1,646
307,535(154,561)(17,276)(142,408)(6,275)
1,564

98,449338
112,881(11,537)(1,418)(281,651)(2,857)422,176(128,435)(115,321)(119,227)(3,900)3,168

240,033
5,257
5,546(7,057)(106,708)

199,157
3,273
5,585(4,429)(49,790)137,071

153,796(66,516)(30,997)
11,377(53,135)(19,852)
10,900(10,901)(23,617)67,90322,080433,629
9,532(7,054)357,457

145,747
19,017(52,619)(53,233)(26,979)(61)
433(21,607)-

1,044,031
5,011(33,156)(48,367)(12,096)(15)
262(428,972)(17)

10,698526,681

5,388

818

146,103

1,038,752

1,015,886

812,331

1,161,989

1,851,083

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

F-5

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

F-6

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

F-7

Notes to Condensed Quarterly Consolidated Financial Statements
June 30, 2021
The following tables show business segment information for the three months ended June 30, 2021 and 2020.
Revenues from External Customers
Millions of yen
2021

2020

IT

407,191

397,549

EnergyIndustry

325,011
152,357

64,339134,239

Mobility
Smart Life353,261
248,546

246,349
273,401

Automotive Systems
Hitachi Construction Machinery

381,530
227,622

108,865
170,119

Hitachi Metals
Others219,563
50,018149,062
47,554

Subtotal
Corporate items

2,365,099
2,338

1,591,477
2,800

Total

2,367,437

1,594,277

Revenues from Intersegment Transactions
Millions of yen
2021

2020

IT

35,70632,637

EnergyIndustry

11,104
34,612

10,07831,617

Mobility
Smart Life

1,520
18,046

1,893
20,885

Automotive Systems
Hitachi Construction Machinery

1,057
514

532
38

Hitachi Metals
Others7,289
56,3895,711
51,035

166,237(166,237)

154,426(154,426)--

Subtotal
Corporate items and Eliminations
Total
Total Revenues

Millions of yen
2021

2020

IT

442,897

430,186

EnergyIndustry

336,115
186,969

74,417
165,856

Mobility
Smart Life354,781266,592

248,242294,286

Automotive Systems
Hitachi Construction Machinery

382,587
228,136

109,397
170,157

Hitachi Metals
Others226,852
106,407

154,773
98,589Subtotal
Corporate items and Eliminations

2,531,336(163,899)

1,745,903(151,626)

Total

2,367,437

1,594,277

F-8

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

2020

IT

44,122

38,035

EnergyIndustry(1,524)
10,369

3,073
4,415

Mobility
Smart Life

43,477
26,34220,011
26,185

Automotive Systems
Hitachi Construction Machinery

12,805
12,385(27,964)
2,429

Hitachi Metals
Others

4,641
5,431

(6,699)4,413

Subtotal
Corporate items and Eliminations

158,048
10,622

63,898276,520

Total

168,670

340,418

Interest income
Interest charges

4,639(6,454)

3,656(4,365)

Income from continuing operations, before income taxes

166,855

339,709

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

F-9

Notes to Condensed Quarterly Consolidated Financial Statements
June 30, 2021
(5) Business Acquisitions and Divestitures
The following are the main Business Acquisitions and Divestitures for the three months ended June 30, 2021, including the period
up to the approval date of the condensed quarterly consolidated financial statements.
(a) Acquisition of Thales’ ground transportation systems business
On August 3, 2021, Hitachi Rail Ltd.(Hitachi Rail) , a consolidated subsidiary of the Company in the Mobility segment, signed
an agreement with Thales S.A.(Thales) to acquire the ground transportation systems business in order to expand the rail
signalling systems business globally. Based on the agreement, Hitachi Rail will acquire Thales’ ground transportation systems
business which will be carved out from Thales. The transaction is subject to the usual conditions including regulatory andantitrust clearances and is expected to be completed by the fiscal year ending March 31, 2023. Hitachi Rail agreed on an
enterprise value of 1,660 million euro (approximately 215.0 billion yen) and the final purchase price will be determined after
certain adjustments. The effects of this transaction on the Company’s consolidated financial statements are currently being
evaluated.
(b) Sale of all shares of Hitachi Metals, Ltd. (Hitachi Metals)
On April 28, 2021, the Company entered into an agreement regarding the following four points for the common stocks of
Hitachi Metals (Hitachi Metals Shares), a consolidated subsidiary of the Company in the Hitachi Metals segment, with K. K.
BCJ-52 (Tender Offeror), a wholly owned company of G.K. BCJ-51, the outstanding shares of which are indirectly owned byinvestment funds which Bain Capital Private Equity, LP and its group provide with investment advice.
(i)Tender Offeror will launch a tender offer (Tender Offer) for Hitachi Metals Shares, when conditions for the commencementof Tender Offer are satisfied, and the Company will not apply for Tender Offer with regard to all of the Hitachi Metals Shares
held by the Company (Shares to Be Sold by the Company).
(ii)In the event Tender Offer is enacted and Tender Offeror is unable to acquire all of the Hitachi Metals Shares (excluding
treasury stock held by Hitachi Metals and Shares to Be Sold by the Company) in Tender Offer, Tender Offeror and theCompany will request convening of a general meeting of shareholders on the matter of items required for implementation ofshare consolidation (Share Consolidation) on Hitachi Metals and exercise approval right for the proposal.
(iii)As promptly as practically possible after Tender Offeror and the Company become holders of all shares of Hitachi Metals(excluding treasury stock held by Hitachi Metals) as a result of Share Consolidation, capital reduction and other measures(Capital Reduction) will be performed for Hitachi Metals in order to secure distributable amount required for acquisition oftreasury stock by Hitachi Metals (Share Repurchase).
(iv)Immediately after Capital Reduction takes effect, Shares to Be Sold by the Company will be transferred to Hitachi Metals asa result of Share Repurchase.
The consideration is expected to be approximately 382.0 billion yen.
Assuming the transaction is settled, it is expected that the Company will transfer Shares to Be Sold by the Company. As a result,
the Company’s ownership ratio of Hitachi Metals Shares will decrease from 53.4% to 0%, and Hitachi Metals will bedeconsolidated. An expected gain on the sale of Hitachi Metals Shares in the amount of approximately 114.0 billion yen will berecognized in Other income in the consolidated statement of profit or loss. Furthermore, non-controlling interest in Hitachi
Metals will decrease approximately 230.0 billion yen in the consolidated statement of changes in equity as a result of its
deconsolidation.
(c) Acquisition of GlobalLogic Inc.
On March 31, 2021, the Company decided to acquire GlobalLogic Inc. (GlobalLogic), a leading U.S.-headquartered digitalengineering service company, in order to strengthen the digital portfolio of “Lumada” and the definitive agreement was signed
among Hitachi Global Digital Holdings LLC (HGDH) which is a subsidiary located in the U.S., MergeCo H Global Inc. (SPC)
which was established by HGDH for the acquisition and GlobalLogic Worldwide Holdings, Inc. (GlobalLogic Worldwide
Holdings) which is the parent company of GlobalLogic.
On July 13, 2021, HGDH acquired 100% of the outstanding shares of GlobalLogic Worldwide Holdings and GlobalLogic
Worldwide Holdings and GlobalLogic have become wholly owned subsidiaries of the Company, as a result of the transaction,
including the merger of SPC with and into GlobalLogic Worldwide Holdings, which is the surviving company. The cash paid
for the acquisition is approximately 8.4 billion U.S. dollars (approximately 915.3 billion yen). Acquisition related costs ofapproximately 4,000 million yen will be recorded for the year ending March 31, 2022. Hitachi America Capital, Ltd. which is a
subsidiary located in the U.S., repaid approximately 1.1 billion U.S. dollars (approximately 115.5 billion yen) of certain loans
owed by GlobalLogic, in addition to the acquisition cost.
Due to a time constraint between the acquisition date and the filing date of the quarterly report, the initial accounting treatment
for the acquisition of GlobalLogic has not yet been completed. Accordingly, no disclosure has been made to the amounts ofassets acquired and liabilities assumed that were recognized at the date of acquisition or the balance of goodwill.

F-10

Notes to Condensed Quarterly Consolidated Financial Statements
June 30, 2021(d) Reorganization of the Global Home Appliances Business (excluding Japan)
On December 16, 2020, Hitachi Global Life Solutions, Inc. (Hitachi GLS), a consolidated subsidiary of the Company in the
Smart Life segment, and Arçelik A.S. (Arçelik) signed a share purchase agreement to establish a new joint venture company.
Based on the agreement, Hitachi GLS established a new company and transferred its global home appliances business outside ofJapan into the new company on July 1,2021, and Hitachi GLS transferred 60% of the shares of common stock of the newcompany to Arçelik. The consideration is 343 million U.S. dollars (38,000 million yen). As a result, Hitachi GLS’s ownership
ratio of shares of the new company decreased from 100% to 40%, and the new company turned into an equity-method associateof the Company.
(e) Other
To implement the growth investments necessary to strengthen and expand the Social Innovation Business globally, theCompany issued commercial paper at a total issue price of 100,000 million yen in July 2021. Also, the Company borrowed
money totaling 500,000 million yen from several financial institutions in July 2021. All interest rates reflect market interest
rates and maturities are within one year. There are no collateral or other important riders.
The following are the main Business Acquisitions and Divestitures for the three months ended June 30, 2020.
(a) Additional acquisition of shares of Hitachi High-Tech Corporation (Hitachi High-Tech)
On January 31, 2020, the Company decided to conduct a tender offer to acquire all issued shares of Hitachi High-Tech, aconsolidated subsidiary of the Company in the Smart Life segment, to establish the measurement and analysis platform tostrengthen Lumada. The Company commenced the tender offer on February 17, 2020, and the tender offer was completed on
April 6, 2020.
Furthermore, the Company conducted a series of procedures to make Hitachi High-Tech a wholly-owned subsidiary of theCompany. As a result, the Company’s ownership ratio of shares of Hitachi High-Tech increased to 100% on May 20, 2020.
The total consideration paid was 531,084 million yen, and the Company recognized decreases in capital surplus of 321,627
million yen and non-controlling interest of 209,457 million yen, respectively, for the three months ended June 30, 2020.
(b) Sale of all shares of Hitachi Chemical Company, Ltd. (Hitachi Chemical)
On December 18, 2019, the Company signed a tender offer agreement with Showa Denko K.K. (Showa Denko) and HC
Holdings K.K. (HC Holdings), a wholly-owned subsidiary of Showa Denko, under which the Company agrees to tender all
shares of common stock in Hitachi Chemical held by the Company, in response to a tender offer to be carried out by HC
Holdings for the shares of common stock of Hitachi Chemical, a consolidated subsidiary of the Company. HC Holdingscommenced the tender offer on March 24, 2020, and the tender offer was completed on April 20, 2020. The consideration
received by the Company was 495,145 million yen.
As a result, the Company’s ownership ratio of shares of Hitachi Chemical decreased from 51.4% to 0%, and Hitachi Chemical
was deconsolidated. A gain on the sale of shares of Hitachi Chemical in the amount of 278,839 million yen was recognized in
Other income in the condensed quarterly consolidated statement of profit or loss. Furthermore, non-controlling interest in
Hitachi Chemical decreased 220,402 million yen in Changes in non-controlling interests in the condensed quarterly consolidated
statement of changes in equity as a result of its deconsolidation.
On October 1, 2020, Hitachi Chemical changed its name to Showa Denko Materials Co., Ltd.

F-11

Notes to Condensed Quarterly Consolidated Financial Statements
June 30, 2021
(6) Trade Receivables and Contract Assets
The components of trade receivables and contract assets are as follows:
Millions of yen
June 30, 2021
Accounts receivable

March 31, 2021

1,581,335

1,948,569

Contract assets

756,952

634,318

Others154,540

151,589

Total

2,492,827

2,734,476

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

F-12

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

March 31, 2021

Estimated
fair values

Carrying amounts

Estimated
fair values

AssetsInvestments in securities and otherfinancial assets
Lease receivables

85,24686,55490,044

91,483

Debt securities

54,66554,66755,71455,716Long-term loans receivable

1,832

1,832

21,10322,409Liabilities
Long-term debt [1]BondsLong-term borrowings

355,923

358,008

365,959

367,537

1,299,437

1,301,858

1,295,609

1,296,373[1] Long-term debt is included in Current portion of long-term debt and Long-term debt in the condensed quarterly consolidated
statement of financial position.
(c) Financial Instruments Measured at Fair Value
Financial instruments measured at fair value on a recurring basis after the initial recognition are classified into three levels of thefair value hierarchy based on the measurement inputs’ observability as follows:
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets
Level 2: Valuations measured by direct or indirect observable inputs other than Level 1
Level 3: Valuations measured by significant unobservable inputs
When several inputs are used for a fair value measurement, the level is determined based on the input that is significant with thelowest level in the fair value measurement as a whole.
Transfers between levels are deemed at the beginning of each quarter period.

F-13

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

Millions of yen
Level 1

Level 2

Level 3

Total

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

85-

13,163

13,24812,550

4,672

6,218

23,440-43,02687

43,113

328,426

1,138

106,997

436,561

341,061

48,836

126,465

516,362-

24,958-24,958-24,958-24,958Derivatives
FVTOCI financial assets:
Investments in securities and otherfinancial assets
Equity securities
Total financial assets at fair value
FVTPL financial liabilities:
Other financial liabilities
Derivatives
Total financial liabilities at fair value
March 31, 2021
Class of financial instruments

Millions of yen
Level 1

Level 2

Level 3

Total

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

131

-

9,865

9,996

Debt securities

12,749

4,548

6,054

23,351-

34,981

87

35,068235,278977

110,853

347,108

248,158

40,506

126,859

415,523-

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

F-14

Notes to Condensed Quarterly Consolidated Financial Statements
June 30, 2021
The following tables present the changes in Level 3 instruments measured on a recurring basis for the three months ended June30, 2021 and 2020.
June 30, 2021
Level 3 financial assets

Millions of yen
Equitysecurities

Debt
securities

Derivatives

Total

Balance at beginning of period

120,718

6,054

87

126,859

Gain in profit or loss [1]Loss in OCI [2]35(2,788)

122
-

-

157
(2,788)Purchases
Sales and redemption

4,919(2,414)

470
(424)

-

5,389
(2,838)

10
(301)

-

-

10
(301)

(19)
120,160

(4)
6,218

87

(23)
126,465

27

122

-

149

Acquisitions and divestitures
Transfer from Level 3 [3]OtherBalance at end of period
Unrealized gain relating tofinancial assets held at end of period [4]June 30, 2020
Level 3 financial assets
Balance at beginning of period
Gain (loss) in profit or loss [1]Millions of yen
Equitysecurities

Debt
securities

Derivatives

Total

112,885
(139)

8,617
57

6,147
(1)

127,649(83)

Gain in OCI [2]Purchases

1,205
1,068

303

-

1,205
1,371

Sales and redemption
Acquisitions and divestitures(1,041)(3,591)

(613)
(656)

(6,061)-(7,715)(4,247)

Other
Balance at end of period

118
110,505

(4)
7,704

85

114
118,294

(152)

57

(1)

(96)

Unrealized gain (loss) relating tofinancial assets held at end of period [4][1] Gain (loss) in profit or loss related to FVTPL financial assets is included in Financial income and Financial expenses in thecondensed quarterly consolidated statement of profit or loss.
[2] Gain (loss) in OCI related to FVTOCI financial assets is included in Net changes in financial assets measured at fair value
through OCI in the condensed quarterly consolidated statement of comprehensive income.
[3] Transfer from Level 3 is mainly due to an investee becoming listed on the stock market.
[4] Unrealized gain (loss) relating to FVTPL financial assets held at the end of period is included in Financial income andFinancial expenses in the condensed quarterly consolidated statement of profit or loss.
Fair values are measured by the finance departments in accordance with the Company’s policies and procedures. Valuation
models are determined so that they reflect each financial instrument’s nature, characteristics and risks most appropriately. The
finance departments continually examine changes in important inputs that could affect the fair value. In case the fair value of afinancial instrument was significantly impaired, administrators review and approve the impairment loss.
(d) Other
The Company and its subsidiaries recognize put options on shares of subsidiaries held by non-controlling interests as financial
liabilities at the present value of the exercise price. The Company derecognizes the non-controlling interests and recognizes thedifference between the present value and non-controlling interests in capital surplus.
Put options on non-controlling interests of Hitachi ABB Power Grids Ltd are measured at the present value of the exercise price.
The carrying amount of the put options above as of June 30 and March 31, 2021 were 238,189 million yen and 237,805 million
yen, respectively, included in Other non-current liabilities in the condensed quarterly consolidated statement of financial
position.
On June 30, 2021, Hitachi ABB Power Grids Ltd changed its name to Hitachi Energy Ltd.

F-15

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

Decision
The Board of Directors
on May 12, 2021

Cash dividends(millions of yen)
53,175

Appropriation
from
Retained earnings

Cash dividends
per share (yen)55.0

Record date

Effective date

March 31, 2021

June 2, 2021

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

Decision
The Board of Directors
on May 13, 2020

Cash dividends(millions of yen)
48,311

Appropriation
from
Retained earnings

F-16

Cash dividends
per share (yen)50.0

Record date

Effective date

March 31, 2020

June 8, 2020

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

Total
Revenues

11,777

121,310442,897

86,40147,450274,859

336,115

29,874

6,087

4,794

60,100186,969

176,002

13,79575,574

12,873

278,244354,781

132,960

72,24529,38926,123

5,875

133,632

266,592

Automotive Systems

108,740

141,639

75,49031,65925,059273,847

382,587

Hitachi Construction Machinery

43,20543,684

42,11839,03760,092

184,931

228,136

Hitachi Metals

98,43348,502

65,11910,371

4,427

128,419

226,852

Others

88,707

12,739

1,277

2,940

744

17,700106,407

Subtotal

1,058,294

629,383

360,425

310,143

173,091

1,473,042

2,531,336

Corporate items and Eliminations(150,711)(7,901)(1,669)(2,858)(760)(13,188)(163,899)

Total

907,583

621,482358,756

307,285

172,3311,459,854

2,367,437

North
America

Japan

Asia

IT

321,587

39,67537,907

31,951

Energy61,25675,55265,456

Industry

126,869

19,345

Mobility

76,537

Smart Life

Europe

Other
Areas

Millions of yen
June 30, 2020
Overseas
Revenues
Subtotal

Total
Revenues

8,907

118,505

430,186607

147

14,48574,417

19,943

3,308

3,311

42,975

165,856

103,467

11,982

47,911

9,192

172,552

248,242

147,657

81,775

29,10425,69010,060146,629294,286

Automotive Systems

40,59533,142

17,25912,455

5,946

68,802

109,397

Hitachi Construction Machinery

39,93439,02627,906

17,85545,436130,223

170,157

Hitachi Metals

78,80834,08432,998

6,931

1,952

75,965

154,773

Others82,25012,244

1,967

1,387

741

16,33998,589Subtotal

959,428

368,451

183,199

149,133

85,692786,475

1,745,903

Corporate items and Eliminations(141,425)(7,805)

(994)

(781)

(621)

(10,201)(151,626)

Total

818,003360,646

182,205

148,352

85,071

776,274

1,594,277

North
America

Japan

Asia

IT

311,681

38,13938,47032,989Energy59,932

10,161

3,570

Industry

122,881

16,413

Mobility

75,690Smart Life

F-17

Europe

Other
Areas

Notes to Condensed Quarterly Consolidated Financial Statements
June 30, 2021
The IT segment consists of Front Business and Services & Platforms, for which revenue amounted to 302,164 million yen and
173,018 million yen for the three months ended June 30, 2021 and 291,222 million yen and 172,847 million yen for the threemonths ended June 30, 2020, respectively (including intersegment transactions). Front Business is operated mainly in Japan, andServices & Platforms is operated mainly in Japan, North America and Europe.
The Company's revenues include revenue recognized based on the pattern of the cost accrual arising from long-term projects. Of
the revenue recognized during the three months ended June 30, 2021 and 2020, the amount of revenue recognized based on thepattern of the cost accrual arising from long-term projects were 341,774 million yen and 223,179 million yen, respectively.
(b) Information about satisfaction of performance obligations
The following is information about satisfaction of performance obligations related to major goods and services of eachreportable segment.
(IT)
Front Business primarily provides goods and services such as system integration, consulting and cloud services. These longterm projects provide goods and services according to customers’ specifications over a specified period of time, and revenue
is recognized mainly based on the pattern of the cost accrual (the progress of the project mostly based on the cost incurred
relative to the estimated total cost) or the passage of time as performance obligations are satisfied over time.
Many of the contracts require payments based on milestones, and in some cases, payments are made before performanceobligations are satisfied.
Services & Platforms primarily sells control systems, software and IT products. Revenue is recognized when control over the
goods is transferred to customers as performance obligations are satisfied at the point in time upon the completion or upondelivery of the goods. The Company’s general terms and conditions apply, and there are no significant transactions in which
payment terms include deferred payments, etc.
(Energy, Industry and Mobility)
The Energy segment includes revenue from businesses such as energy solutions, which are operated mainly in Japan, Asia,
Europe, and North America.The Industry segment includes revenue from businesses such as industry & distribution
solutions, which are operated mainly in Japan. The Mobility segment includes revenue from building systems and railway
systems businesses. The building systems business is operated mainly in China and the railway systems business is operated
mainly in Europe.
Long-term projects related to contracts such as construction in these segments involve manufacturing and providing goods
based on customers’ specifications over a specified period of time. As performance obligations are satisfied over time,revenue is recognized mainly based on the pattern of the cost accrual (the progress of the project mostly based on the cost
incurred relative to the estimated total cost). In addition, these segments provide certain services promised in the contracts
such as maintenance throughout the duration of the contract, and recognize revenue over time based on the passage of time.
Many of the contracts require payments based on milestones, and, in some cases, payments are made before performanceobligations are satisfied.
Further, in the sale of industrial equipment, etc. included in the Industry segment, and in the sale of elevators, etc. included in
the Mobility segment, revenue is recognized when control over the goods is transferred to customers as performanceobligations are satisfied at the point in time upon the completion or upon delivery of the goods. The Company’s generalterms and conditions apply, and there are no significant transactions in which payment terms include deferred payments, etc.
(Other)In the Smart Life, Automotive Systems, Hitachi Construction Machinery, and Hitachi Metals segments, performanceobligations are generally satisfied at a point in time upon completion or upon delivery of the goods, and revenue isrecognized when control over goods is transferred to customers. The Company’s general terms and conditions apply, andthere are no significant transactions in which payment terms include deferred payments, etc.
These segments provide certain services promised in the contracts such as maintenance throughout the duration of thecontract, and they recognize revenue over time based on the passage of time. The Company’s general terms and conditions
apply, and there are no significant transactions in which payment terms include deferred payments, etc.

F-18

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

2020

Net gain (loss) on sales and disposals of fixed assets(1,872)

2,015

Impairment losses(1,341)(338)

Net gain (loss) on business reorganization and others

36,714

281,651

Special termination benefits(1,945)(1,185)

Impairment losses are mainly recognized on property, plant and equipment, investment properties, goodwill and other intangible
assets. Net gain (loss) on business reorganization and others include gains and losses related to obtaining and losing control ofinvestees and gains and losses related to obtaining and losing significant influence over investees.
Restructuring charges (structural reform expenses) included in other expenses for the three months ended June 30, 2021 and 2020
were 3,286 million yen and 1,523 million yen, respectively. Restructuring charges (structural reform expenses) mainly include
impairment losses and special termination benefits.
(11) Financial Income and Expenses
The main components of financial income and expenses for the three months ended June 30, 2021 and 2020 are as follows:
Millions of yen
2021

2020

Dividends received

1,909

1,976

Exchange gain (loss)(1,816)(390)

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

F-19

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

2020

Profit or loss from discontinued operations
Revenues

0

4

Cost of sales and expenses

0

(341)

0

(337)

-

-

0

(337)

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

Millions of yen
2021

2020

Cash flows from discontinued operations
Cash flows from operating activities

0

(260)

Cash flows from investing activities--

Cash flows from financing activities

0

381

F-20

Notes to Condensed Quarterly Consolidated Financial Statements
June 30, 2021
(13) Earnings Per Share (EPS) Information
The calculations of basic and diluted EPS attributable to Hitachi, Ltd. stockholders for the three months ended June 30, 2021 and2020 are as follows:
Number of shares
2021
Weighted average number of shares on which basic EPS is calculated

2020

966,301,120

965,905,747

Stock options

551,578

681,400

Restricted stock693,289446,753

Effect of dilutive securities

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

20,4385,506

967,566,425

967,039,406
Millions of yen

2021

2020

Net income from continuing operations,
attributable to Hitachi, Ltd. stockholders
Basic122,231

223,588--

122,231

223,588

Basic

0

(337)

Effect of dilutive securities--

Diluted0(337)

122,231

223,251--

122,231

223,251

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

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

Yen
2021

2020

EPS from continuing operations,
attributable to Hitachi, Ltd. stockholders
Basic126.49231.48

Diluted126.33231.21

Basic

0.00

(0.35)

Diluted

0.00(0.35)

Basic

126.49231.13

Diluted126.33230.86

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

EPS attributable to Hitachi, Ltd. stockholders

F-21

Notes to Condensed Quarterly Consolidated Financial Statements
June 30, 2021
(14) Contingencies
Litigation
In November 2017, a subsidiary in Japan received a complaint that was filed against three companies, namely a construction
company of a condominium complex, the subsidiary and a secondary subcontractor, by a contractee in Japan seeking
approximately 45.9 billion yen in compensation for expenses allegedly incurred arising from concerns over partial
deficiencies of piling work during the construction phases of the condominium complex, which the subsidiary contracted as
the primary subcontractor. In July 2018, the compensation claim against these three companies was amended toapproximately 51.0 billion yen by the contractee.
In relation to the aforementioned lawsuit, in April 2018, the subsidiary in Japan received a complaint that was filed against
the subsidiary and the secondary subcontractor, by the construction company of the condominium complex seeking
approximately 49.6 billion yen in compensation for expenses allegedly incurred arising from the aforementioned lawsuit. In
July 2018, the compensation claim against these two companies was amended to approximately 54.8 billion yen by theconstruction company of the condominium complex. Although the subsidiary in Japan will address these claims and explain
its position, there can be no assurance that it will not be held liable for any amounts claimed.
In December 2017, a subsidiary in Europe received a complaint filed by a customer in Europe seeking compensation forconsequential losses of 263 million euro (34,611 million yen) and interest allegedly incurred by performance defects of apower plant. As of June 30, 2021, the amount of compensation claimed by the customer was changed to 270 million euro
(35,531 million yen). Although the subsidiary in Europe will vigorously defend itself against this lawsuit, there can be noassurance that it will not be held liable for any amounts claimed.
The Company and its subsidiaries execute a number of business reorganizations, including mergers, acquisitions anddivestitures. Contracts for these reorganizations include clauses for transaction price adjustments subsequent to thereorganizations. There is a possibility products or services provided by the Company and its subsidiaries contain defects. As
the result of price adjustments, or in compensation for defects in products or services etc. there is a possibility that theCompany pays for any amounts.
Depending upon the outcome of the above legal proceedings, there may be an adverse effect on the consolidated financial
position or results of operations. Currently, the Company is unable to estimate the adverse effect, if any, of many of theseproceedings. The actual amount of fines, surcharge payments or any other payments resulting from these legal proceedings
may be different from the accrued amounts.
In addition to the above, the Company and its subsidiaries are subject to legal proceedings and claims which have arisen in
the ordinary course of business and have not been finally adjudicated. These actions when ultimately concluded anddetermined will not, in the opinion of management, have a material adverse effect on the condensed quarterly consolidated
financial statements of the Company and subsidiaries.
(15) Approval of Condensed Quarterly Consolidated Financial Statements
The condensed quarterly consolidated financial statements were approved on August 5, 2021 by Keiji Kojima, President and
COO of the Company.

F-22

[Cover][Document Filed][Applicable Law]

Confirmation Letter
Article 24-4-8, Paragraph 1 of the Financial Instruments and Exchange Act of Japan[Filed with][Filing Date]

Director, Kanto Local Finance Bureau
August 5, 2021

[Company Name][Company Name in English]

Kabushiki Kaisha Hitachi Seisakusho
Hitachi, Ltd.

[Title and Name of Representative][Name and title of CFO]

Keiji Kojima, President & COO
Yoshihiko Kawamura, Senior Vice President and Executive Officer[Address of Head Office][Place Where Available for Public Inspection]

6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo
Tokyo Stock Exchange, Inc.
(2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)
Nagoya Stock Exchange, Inc.
(8-20, Sakae 3-chome, Naka-ku, Nagoya)A-1

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

A-2