[Translation]

Quarterly Report(The Second Quarter of 155th Business Term)
From July 1, 2023 to September 30, 2023

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 10, 2023

[Fiscal Year]

The Second Quarter of 155th Business Term (from July 1, 2023 to September 30, 2023)[Company Name]

Kabushiki Kaisha Hitachi Seisakusho[Company Name in English]

Hitachi, Ltd.

[Title and Name of Representative]

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

03-3258-1111[Contact Person]

Yuki Fukutani, Manager, Legal Division[Contact Address]

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

03-3258-1111[Contact Person]

Yuki Fukutani, Manager, Legal Division[Place Where Available for Public
Inspection]

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

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

Contents
Part I Information on the Company ………………………………………………………………………………………………
1
I. Overview of the Company ……………………………………………………………………………………………………
1
1. Key Financial Data ………………………………………………………………………………………………………
1
2. Description of Business ……………………………………………………………………………………………………
2
II. Business Overview …………………………………………………………………………………………………………
4
1. Risk Factors ………………………………………………………………………………………………………………
4
2. Management’s Discussion and Analysis of Consolidated Financial Condition, Results of Operations and Cash Flows …
5
3. Material Agreements, etc. ………………………………………………………………………………………………… 10
III. Information on the Company ……………………………………………………………………………………………… 11
1. Information on the Company’s Stock, etc. ……………………………………………………………………………… 11(1) Total number of shares, etc. …………………………………………………………………………………………… 11(2) Information on the stock acquisition rights, etc. ……………………………………………………………………… 11(3) Information on moving strike convertible bonds, etc. ………………………………………………………………… 11(4) Changes in the total number of issued shares and the amount of common stock and other ………………………… 11(5) Major shareholders …………………………………………………………………………………………………… 12(6) Information on voting rights ………………………………………………………………………………………… 13
2. Changes in Senior Management ………………………………………………………………………………………… 14
IV. Financial Information ……………………………………………………………………………………………………… 14
Part II Information on Guarantors, etc. for the Company ………………………………………………………………………… 14[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)
Six months ended
September 30, 2022

Six months ended
September 30, 2023

Year ended
March 31, 2023

5,416,779

4,960,069[2,846,963][2,637,581]

Income before income taxes

282,145

322,056

Net income attributable to Hitachi, Ltd.

172,515

209,103

stockholders[135,357][139,082]

Comprehensive income attributable to Hitachi,Ltd. stockholders

681,216

641,493905,819

Total Hitachi, Ltd. stockholders’ equity

4,851,087

5,415,811

4,942,854

Total equity

5,518,818

5,825,762

5,335,567

Total assets

13,617,345

13,475,204

12,501,414

Earnings per share attributable to Hitachi, Ltd.

180.01

224.14stockholders, basic (yen)[142.17][149.61]

Earnings per share attributable to Hitachi, Ltd.
stockholders, diluted (yen)179.83223.88683.89Total Hitachi, Ltd. stockholders’ equity ratio (%)

35.6

40.2

39.5

Net cash provided by (used in) operating
activities

233,652

316,926

827,045

Net cash provided by (used in) investing
activities(72,339)(110,290)

151,063

Net cash provided by (used in) financing
activities(338,473)(194,329)(1,142,966)

Cash and cash equivalents at end of period

866,016

905,838

833,283

Revenues

10,881,150
819,971649,124684.55(Notes) 1. Hitachi's consolidated financial statements have been prepared in conformity with the International Financial ReportingStandards (“IFRS”) as issued by the International Accounting Standards Board.
2. The figures of “Revenues,” “Net income attributable to Hitachi, Ltd. stockholders” and “Earnings per share attributable to
Hitachi, Ltd. stockholders, basic” in square bracket are those for the three months ended September 30, 2022 and 2023,
respectively.

12. Description of Business
There were no material changes in principal businesses of Hitachi during the six months ended September 30, 2023. The
Hitachi Group is comprised of the Company, 684 consolidated subsidiaries, and 269 equity-method associates and joint-ventures.
Effective from April 1, 2023, the Company abolished Hitachi Construction Machinery segment and Hitachi Metals segment
and discloses its business in five segments: three sectors as “Digital Systems & Services,” “Green Energy & Mobility” and“Connective Industries,” Automotive Systems, and Others.
Major business and the positioning of principal affiliated companies for each segment and changes in Business Unit (BU) of theCompany and principal affiliated companies during the six months ended September 30, 2023 were as follows.
(As of September 30, 2023)
Segments
Main products and services
BU and principal affiliated companies
Digital Systems &・Digital Solutions (System Integration,[BU]
Services
Consulting, Cloud Services)
Financial Institutions BU
・IT Products (Storage, Servers)
Social Infrastructure Systems BU
・Software
Cloud Services Platforms BU (Note 2)
・ATMs
Digital Engineering BU (Note 2)

Green Energy &Mobility

Connective Industries

Automotive Systems

・Energy Solutions (Power Grids, Renewable
Energy, Nuclear)
・Railway Systems

・Building Systems (Elevators, Escalators)
・Smart Life & Ecofriendly Systems (HomeAppliances, Air Conditioners)
・Measurement and Analytical Systems(Semiconductor Manufacturing Equipment,
Clinical Analyzers)
・Industry & Distribution Solutions
・Water & Environment Solutions
・Industrial Machinery[Consolidated subsidiaries]
Hitachi Information & Telecommunication
Engineering, Ltd.
Hitachi Channel Solutions Corp.
Hitachi Solutions, Ltd.
Hitachi Systems, Ltd.
GlobalLogic Worldwide Holding, Inc.
Hitachi Computer Products (America), Inc.
Hitachi Digital LLC
Hitachi Payment Services Private Limited
Hitachi Vantara LLC[BU] (Note 3)
Power Grids BU
Nuclear Energy BU
Railway Systems BU[Consolidated subsidiaries]
Hitachi-GE Nuclear Energy, Ltd.
Hitachi Plant Construction, Ltd.
Hitachi Power Semiconductor Device, Ltd.
Hitachi Power Solutions Co., Ltd.
Hitachi Energy Ltd
Hitachi Rail Ltd.
[BU]
Building Systems BU
Industrial Digital BU
Water & Environment BU[Consolidated subsidiaries]
Hitachi Building Systems Co., Ltd.
Hitachi Global Life Solutions, Inc.
Hitachi High-Tech Corporation
Hitachi Industrial Equipment Systems Co., Ltd.
Hitachi Industrial Products, Ltd.
Hitachi Industry & Control Solutions, Ltd.
Hitachi Plant Services Co., Ltd.
Hitachi Elevator (China) Co., Ltd.
Hitachi Global Air Power US, LLC (Note 4)
Hitachi Industrial Holdings Americas, Inc.
JR Technology Group, LLC[Equity-method associates]
Hitachi Kokusai Electric Inc.
Arcelik Hitachi Home Appliances B.V.
Johnson Controls-Hitachi Air Conditioning
Holding (UK) Ltd[Consolidated subsidiaries]
Hitachi Astemo, Ltd. (Note 5)
Hitachi Astemo Americas, Inc. (Note 5)・Powertrain
・Chassis
・Advanced Driver Assistance・Motorcycle Systems

2

(As of September 30, 2023)
Segments
Main products and services
BU and principal affiliated companies
Others・Property Management[Consolidated subsidiaries]
・Others
Hitachi-LG Data Storage, Inc.
Hitachi Real Estate Partners, Ltd.
Hitachi America, Ltd.
Hitachi Asia Ltd.
Hitachi (China), Ltd.
Hitachi Europe Ltd.
Hitachi India Pvt. Ltd.
(Notes) 1. Hitachi America, Ltd., Hitachi Asia Ltd., Hitachi (China), Ltd., Hitachi Europe Ltd. and Hitachi India Pvt. Ltd. are the
Hitachi Group’s regional supervising company for Americas, Asia, China, Europe and India, and they sell the HitachiGroup’s products.
2. Services & Platforms BU belonging to Digital Systems & Services segment was reorganized as Cloud Services Platforms
BU on April 1, 2023. Digital Engineering BU was established in Digital Systems & Services segment on April 1, 2023.
3. Energy BU belonging to Green Energy & Mobility segment was abolished on April 1, 2023.
4. Sullair, LLC changed its name to Hitachi Global Air Power US, LLC on April 12, 2023.
5. Hitachi Astemo, Ltd. and Hitachi Astemo Americas, Inc. have ceased to be consolidated subsidiaries of the Company andbecome equity-method associates of the Company due to transferring a part of its shares in Hitachi Astemo, Ltd. on
October 16, 2023. Consequently, there is no company which belongs to the Automotive Systems segment since then.
6. In addition to the table above, the major equity-method associate is Hitachi Construction Machinery Co., Ltd.

3

II. Business Overview
1. Risk Factors
There were no new risk factors recognized during the six months ended September 30, 2023.
During the six months ended September 30,2023, the following is the material change in the risk factors stated in the Annual
Securities Report for the 154th business term pursuant to the Financial Instruments and Exchange Act of Japan, and the relevantchange is underlined.
(Before the Change)
Rapid Technological Innovation
New technologies are rapidly emerging in the segments in which Hitachi conducts business, with the pace oftechnological innovation. The development of new and advanced technologies, the continuous, timely and cost-effective
incorporation of such technologies into products, systems and services and the effective marketing of such products, etc.
are indispensable to remaining competitive. For instance, it is important to respond to technological innovations, including
automation and electrification using technologies such as digital and robots and environmentally friendly technologies suchas decarbonization and resource circulation. While introducing such products, etc. requires significant resource
commitment to research and development, there can be no assurance that Hitachi’s research and development will be
successful. Failure in Hitachi’s endeavors to develop and incorporate such advanced technologies into products andservices in a timely manner, or to achieve market acceptance for such products, etc., may negatively affect Hitachi’sbusiness, financial condition and results of operations.
<Text below omitted>(After the Change)
Rapid Technological Innovation
New technologies are rapidly emerging in the segments in which Hitachi conducts business, with the pace oftechnological innovation. The development of new and advanced technologies, the continuous, timely and cost-effective
incorporation of such technologies into products, systems and services and the effective marketing of such products, etc.
are indispensable to remaining competitive. For instance, it is important to respond to technological innovations, including
application of generative AI to human intellectual activity, automation and electrification using technologies such as digitaland robots and environmentally friendly technologies such as decarbonization and resource circulation. While introducing
such products, etc. requires significant resource commitment to research and development, there can be no assurance that
Hitachi’s research and development will be successful. Failure in Hitachi’s endeavors to develop and incorporate such
advanced technologies into products and services in a timely manner, or to achieve market acceptance for such products,
etc., may negatively affect Hitachi’s business, financial condition and results of operations.
<Text below omitted>(Before the Change)
Sharp Decline in Demand
Oversupply in the markets in which Hitachi competes may lead to declines in sales prices, revenues and profitability.
In addition, adjustment to demand may force Hitachi to dispose of excess supply or obsolete equipment or reduce
production, which can result in losses. For example, the imbalance between supply and demand in information equipment,elevators, semiconductor and automotive equipment industries and a resultant deterioration in market conditions could
negatively affect Hitachi’s businesses, financial condition and results of operations.
<Text below omitted>(After the Change)
Sharp Decline in Demand
Oversupply in the markets in which Hitachi competes may lead to declines in sales prices, revenues and profitability.
In addition, adjustment to demand may force Hitachi to dispose of excess supply or obsolete equipment or reduce
production, which can result in losses. For example, the imbalance between supply and demand in information equipment,elevators and semiconductor industries and a resultant deterioration in market conditions could negatively affect Hitachi’sbusinesses, financial condition and results of operations.
<Text below omitted>

42. Management’s Discussion and Analysis of Consolidated Financial Condition, Results of Operations and Cash Flows(1) Analysis of Results of Operations
Results of Operations
The results of operations in the six months ended September 30, 2023 were as follows.
Revenues decreased 8% to 4,960.0 billion yen, as compared with the six months ended September 30, 2022, due mainly todecreased revenues owing to selling a part of shares of Hitachi Construction Machinery Co., Ltd. and selling shares of Hitachi
Metals, Ltd. (Currently Proterial, Ltd.). The decrease was partially offset by increased revenues in Green Energy & Mobility
segment including Hitachi Energy Ltd and Railway Systems business which performed well, Automotive Systems segment due tomoderate production recovery of automaker production and solving semiconductor shortage and Digital Systems & Services
segment including Lumada business which performed well.
Cost of sales decreased 9% to 3,730.5 billion yen, as compared with the six months ended September 30, 2022, and the ratioof cost of sales to revenues decreased 1% to 75%, as compared with the six months ended September 30, 2022. Gross profit
decreased 7% to 1,229.5 billion yen, as compared with the six months ended September 30, 2022.
Selling, general and administrative expenses (“SG&A”) decreased 9% to 904.0 billion yen and the ratio of SG&A torevenues came to 18%, which was the same level as for the six months ended September 30, 2022, respectively.
Share of profits of investments accounted for using the equity method increased 6.5 billion yen to33.2 billion yen, as
compared with the six months ended September 30, 2022 mainly because Hitachi Construction Machinery Co., Ltd. ceased to be
the Company’s consolidated subsidiary and became its equity-method associate in August 2022.
As a result of foregoing, Adjusted EBITA (defined as Adjusted Earnings before Interest, Taxes and Amortization, andrepresenting the revenues less cost of sales as well as SG&A, adding back the amortization of intangible assets, etc. recognized
upon business combinations, and adding or deducting share of profits (losses) of investments accounted for using the equity
method) increased 7.8 billion yen to 400.9 billion yen, as compared with the six months ended September 30, 2022.
Other income decreased 52.9 billion yen to 21.5 billion yen, as compared with the six months ended September 30, 2022,
due mainly to the gains on business reorganization posted in the six months ended September 30, 2022 by selling a part of sharesof Hitachi Construction Machinery Co., Ltd. Other expenses decreased 91.6 billion yen to 42.7 billion yen, as compared with thesix months ended September 30, 2022, due mainly to the absence of the impairment losses posted in Hitachi Energy Ltd andexpenses posted by shifting to risk-sharing corporate pension in the six months ended September 30, 2022.
Financial income (excluding interest income) decreased 4.8 billion yen to 6.6 billion yen, and financial expenses (excludinginterest charges) decreased 6.2 billion yen to 4.2 billion yen, as compared with the six months ended September 30, 2022,
respectively.
Earnings before interest and taxes increased 47.5 billion yen to 339.8 billion yen, as compared with the six months ended
September 30, 2022.
Interest income increased 8.4 billion yen to 19.7 billion yen and interest charges increased 16.1 billion yen to 37.5 billion
yen, as compared with the six months ended September 30, 2022, respectively.
Income before income taxes increased 39.9 billion yen to 322.0 billion yen, as compared with the six months ended
September 30, 2022.
Income taxes increased 8.4 billion yen to 89.7 billion yen, as compared with the six months ended September 30, 2022.
Net income increased 31.4 billion to 232.3 billion yen, as compared with the six months ended September 30, 2022.
Net income attributable to non-controlling interests decreased 5.0 billion yen to 23.2 billion yen, as compared with the six
months ended September 30, 2022.
As a result of the foregoing, net income attributable to Hitachi, Ltd. stockholders increased 36.5 billion yen to 209.1 billion
yen, as compared with the six months ended September 30, 2022.
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, 2023, the company reclassified its reportable segment in five segments: Digital Systems &Services, Green Energy & Mobility, Connective Industries, Automotive systems and Others. Accordingly, the amounts previously
reported for the six months ended September 30, 2022 have been restated in conformity with the new segments.
Revenues and Adjusted EBITA for Business Management Reinforcement Division, which were previously included in Green
Energy & Mobility segment, are included in Others segment from April 1, 2023. Accordingly, the amounts previously reported
for the six months ended September 30, 2022 have been restated in conformity with this change.
(Digital Systems & Services)
Revenues increased 8% to 1,192.5 billion yen, as compared with the six months ended September 30, 2022, due mainly tothe storong results of Lumada business and growth of GlobalLogic by harvesting the demand for DX
Adjusted EBITA increased 17.5 billion yen to 135.0 billion yen, as compared with the six months ended September 30,
2022, due mainly to increased revenues. The increase was partially offset by decreased profit due mainly to continued investment
in development for growth to expand business in Services & Platforms business.

5(Green Energy & Mobility)
Revenues increased 27% to 1,345.7 billion yen, as compared with the six months ended September 30, 2022, due mainly tosales increase in Hitachi Energy Ltd by ongoing orders and sales increase in the Railway Systems business resulting from theprogress in major projects.
Adjusted EBITA increased 25.3 billion yen to 79.6 billion yen, as compared with the six months ended September 30, 2022,
due mainly to increased revenues, as well as increased profitability in Hitachi Energy Ltd and improved profitability in Railway
Systems business resulting from the progress in major projects and better project mix. The increase was partially offset bydecreased profits due mainly to cost increase in a certain project in Energy business.
(Connective Industries)
Revenues increased 3% to 1,463.8 billion yen, as compared with the six months ended September 30, 2022, due mainly toincreased revenues in Industrial Products business and Water and Environment business. The increase was partially offset bydecreased revenues in Measurement and Analytical Systems business.
Adjusted EBITA decreased 3.4 billion yen to 145.7 billion yen, as compared with the six months ended September 30, 2022,
due mainly to decrease in profit resulting from decreased revenues in Measurement and Analytical Systems business, despite
increased revenues.
(Automotive Systems)
Revenues increased 17% to 1,035.2 billion yen, as compared with the six months ended September 30, 2022, due mainly tomoderate production recovery of automaker production and resolving semiconductor shortage as well as the absence of the impact
of municipal lockdown in China posted in six months ended September 30, 2022.
Adjusted EBITA increased 29.4 billion yen to 41.2 billion yen, as compared with the six months ended September 30, 2022,
due mainly to increased revenues.
(Others)
Revenues increased 3% to 241.8 billion yen, as compared with the six months ended September 30, 2022. Adjusted EBITA
improved 9.4 billion to 7.8 billion yen, as compared with the six months ended September 30, 2022.
Revenues by Market
Revenues in Japan decreased 7% to 1,769.8 billion yen, as compared with the six months ended September 30, 2022, due
mainly to decreased revenues owing to selling a part of shares of Hitachi Construction Machinery Co., Ltd. and selling shares ofHitachi Metals, Ltd. The decrease was partially offset by increased revenues in Digital Systems & Services segment due to steady
growth in Front Business, and increased revenues in Connective Industries segment due to the rebound from decreased revenues
resulting from the shortage of semiconductor supplies in the six months ended September 30, 2022 and increase in orders forlarge-scale projects in Water and Environment business.
Overseas revenues decreased 9% to 3,190.2 billion yen, as compared with the six months ended September 30, 2022, due
mainly to decreased revenues owing to selling a part of Hitachi Construction Machinery Co., Ltd. and selling shares of Hitachi
Metals, Ltd. The decrease was partially offset by increased revenues in Green Energy & Mobility segment including Hitachi
Energy Ltd and increased revenues in Automotive Systems segment due mainly to the resolving shortage of semiconductor
supplies, as well as the impact of foreign exchange.
As a result, the ratio of overseas revenues to total revenues decreased 1% to 64%, as compared with the six months ended
September 30, 2022.

6

(2) Analysis of Financial Condition and Cash Flows
Liquidity and Capital Resources
During the six months ended September 30, 2023, 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 six months ended September 30, 2023 increased by 23.2 billion yen
and income tax payment increased by 6.5 billion yen, as compared with the six months ended September 30, 2022, respectively.
However, net cash inflow from a change in trade receivables and contract assets increased by 25.1 billion yen, as well as net cash
outflow from a change in inventories decreased by 114.9 billion yen, as compared with the six months ended September 30, 2022,
respectively.
As a result of the foregoing, net cash provided by operating activities was 316.9 billion yen in the six months ended
September 30, 2023, an increase of 83.2 billion yen compared with the six months ended September 30, 2022.
(Cash Flows from Investing Activities)
Purchase of investments in securities and other financial assets (including investments in subsidiaries and investments
accounted for using the equity method) in the six months ended September 30, 2023 decreased by 18.4 billion yen, as comparedwith the six months ended September 30, 2022. However, net amount of investments related to property, plant and equipment*
was 175.0 billion yen in the six months ended September 30, 2023 and this net sum increased by 11.2 billion yen, as comparedwith the six months ended September 30, 2022. Furthermore, proceeds from sale of investments in securities and other financial
assets (including investments in subsidiaries and investments accounted for using the equity method) in the six months ended
September 30, 2023 decreased by 45.4 billion yen, as compared with the six months ended September 30, 2022, due mainly to thesale of shares of Hitachi Construction Machinery Co., Ltd. in the six months ended September 30, 2022.
As a result of the foregoing, net cash used in investing activities was 110.2 billion yen in the six months ended September 30,
2023, an increase of 37.9 billion yen compared with the six months ended September 30, 2022.
* The sum of the purchase of property, plant and equipment and the purchase of intangible assets, less the proceeds from sale ofproperty, plant and equipment, and intangible assets.
(Cash Flows from Financing Activities)
Net cash inflow from a change in short-term debt in the six months ended September 30, 2023 increased by 45.4 billion yen,
as compared with the six months ended September 30, 2022. Furthermore, net cash outflow related to long-term debt** in the six
months ended September 30, 2023 decreased by 13.9 billion yen, as compared with the six months ended September 30, 2022 andacquisition of common stock for treasury in the six months ended September 30, 2023 decreased by 40.0 billion yen, as comparedwith the six months ended September 30, 2022.
As a result of the foregoing, net cash used in financing activities was 194.3 billion yen in the six months ended September
30, 2023, a decrease of 144.1 billion yen compared with the six months ended September 30, 2022.
** The proceeds from long-term debt, less the payments on long-term debt.
As a result of the foregoing, cash and cash equivalents as of September 30, 2023, were 905.8 billion yen, an increase of 72.5
billion yen from March 31, 2023. Free cash flows, the sum of cash flows from operating and investing activities, were an inflow
of 206.6 billion yen in the six months ended September 30, 2023, an increase of 45.3 billion yen compared with the six months
ended September 30, 2022.
Assets, Liabilities and Equity
The following is an overview of Hitachi’s assets, liabilities, and equity as of September 30, 2023.
Total assets were 13,475.2 billion yen, an increase of 973.7 billion yen from March 31, 2023, due mainly to the impact offoreign exchange.
Total interest-bearing debt, the sum of short-term debt and long-term debt including current portion of long-term debt, was2,375.8 billion yen, an increase of 162.5 billion yen from March 31, 2023, due mainly to an increase in short-term debt.
Total Hitachi, Ltd. stockholders’ equity increased by 472.9 billion yen from March 31, 2023, to 5,415.8 billion yen. The ratioof total Hitachi, Ltd. stockholders’ equity to total assets was 40.2%, as compared with 39.5% as of March 31, 2023.
Non-controlling interests were 409.9 billion yen, an increase of 17.2 billion yen from March 31, 2023.
Total equity was 5,825.7 billion yen, an increase of 490.1 billion yen from March 31, 2023. The ratio of interest-bearing debt
to total equity was 0.41, which was the same level as of March 31, 2023

7

(3) Management Policy
There were no material changes in Hitachi’s management policy during the six months ended September 30, 2023.
(4) Challenges Hitachi Group Faces
1) Business and Financial Challenges Hitachi Group Faces
There were no material changes in Hitachi’s business and financial challenges during the six months ended September 30,
2023.
2) Fundamental Policy on the Conduct of Persons Influencing Decision on the Company’s Financial and Business Policies
There were no material changes in Hitachi’s fundamental policy during the six months ended September 30, 2023.
(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 154th business term pursuant to the Financial Instruments andExchange Act of Japan. The Hitachi Group’s R&D expenditures in the six months ended September 30, 2023 were 155.7 billion
yen, 3.1% of revenues. A breakdown of R&D expenditures by segment is shown below.
(Billions of yen)Segment

Six months ended
September 30, 2023

Digital Systems & Services

25.7

Green Energy & Mobility

27.8

Connective Industries

42.6

Automotive Systems

46.0

Others0.6

Corporate items & Eliminations

12.8

Total

155.7

(6) Plans for Capital Investment, Disposals of Property, Plants and Equipment, etc.
The Hitachi Group (the Company and consolidated subsidiaries) engages in diverse operations in Japan and overseas, andhas not decided on specific plans to newly install or expand each of facilities as of the end of the consolidated fiscal year and eachquarter of the consolidated fiscal year. For this reason, it discloses amounts of capital investment by segment.
The amount of capital investment for the fiscal year ending March 31, 2024 is updated as follows (new installation andexpansions, based on the amount recorded as tangible fixed assets and the investment property). The amount of capital investment
which is shown in the Initial Plan is the amount planned as of the filing date of the Annual Securities Report for the 154th
business term.

Segment

The amount of capital investment
for the fiscal year ending March 31, 2024
(Billions of yen)
Initial Plan

Updated Plan

Digital Systems & Services

67.0

67.0

Green Energy & Mobility

99.0

108.0

Connective Industries

80.0

80.0

Automotive Systems

40.0

51.0

Others22.0

22.0

Corporate Items & Eliminations
Total

2.0

2.0

310.0

330.0

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

8

(7) Forward-Looking Statements
Certain statements found in “2. Management’s Discussion and Analysis of Consolidated Financial Conditions, Operating
Results and Cash Flows” and other descriptions in this report may constitute “forward-looking statements” as defined in the U.S.
Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views withrespect to certain future events and financial performance and include any statement that does not directly relate to any historicalor current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar
expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on
currently available information and are subject to various risks and uncertainties that could cause actual results to differ materiallyfrom those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking
statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not
be placed on “forward-looking statements,” as such statements speak only as of the date of this report.
Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking
statement” and from historical trends include, but are not limited to:• economic conditions, including consumer spending and plant and equipment investment in Hitachi’s major markets, as wellas levels of demand in the major industrial sectors Hitachi serves;• exchange rate fluctuations of the yen against other currencies in which Hitachi makes significant sales or in which Hitachi’s
assets and liabilities are denominated;• uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing;• uncertainty as to general market price levels for equity securities, declines in which may require Hitachi to write down
equity securities that it holds;• fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel,aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and components;• credit conditions of Hitachi’s customers and suppliers;• general socioeconomic and political conditions and the regulatory and trade environment of countries where Hitachi
conducts business, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect
restrictions by other nations on imports and differences in commercial and business customs including, without limitation,
contract terms and conditions and labor relations;• uncertainty as to Hitachi’s ability to response to tightening of regulations to prevent climate change;• uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect
its confidential information or that of its customers;• uncertainty as to Hitachi’s ability to attract and retain skilled personnel;• uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technologies on a timely
and cost-effective basis and to achieve market acceptance for such products;• exacerbation of social and economic impacts of the spread of COVID-19;• the possibility of disruption of Hitachi’s operations by natural disasters such as earthquakes and tsunamis, the spread of
infectious diseases, and geopolitical and social instability such as terrorism and conflict;• estimates, fluctuations in cost and cancellation of long-term projects for which Hitachi uses the percentage-of-completion
method to recognize revenue from sales;• increased commoditization of and intensifying price competition for products;• fluctuations in demand of products, etc. and industry capacity;• uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in demandof products, etc., exchange rates and/or price of raw materials or shortages of materials, parts and components;• uncertainty as to the success of cost structure overhaul;• uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation
Business;• uncertainty as to the success of acquisitions of other companies, joint ventures and strategic alliances and the possibility of
incurring related expenses;• uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting
underperforming businesses and to strengthen competitiveness;• the potential for significant losses on Hitachi’s investments in equity-method associates and joint ventures;• uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its
subsidiaries or its equity-method associates and joint ventures have become or may become parties;• the possibility of incurring expenses resulting from any defects in products or services of Hitachi;• uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property; and• uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its employee benefit-related costs.

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

93. Material Agreements, etc.
The material contract renewed during the three months ended September 30, 2023 is as follows
Cross License Agreement
Party

Party

Country

Item undercontract

Hitachi-GE Nuclear
Energy, Ltd.
(Consolidated subsidiary)

GE-Hitachi
Nuclear Energy
Americas LLC

U.S.A.

Nuclear reactor
systems

10

Contract
description
Cross license ofpatents andtechnology

Contract period
From October 30, 1991
to December 31, 2023

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

Total number of shares authorized to
be issued (shares)

Common stock

2,000,000,000

Total

2,000,000,0002) Issued shares
Number of sharesissued as of the end of
fiscal year (shares)(September 30, 2023)

Number of sharesissued as of thefiling date (shares)(Note)(Novemver 10, 2023)

Commonstock

938,241,277

927,167,877

Tokyo, Nagoya

Total

938,241,277

927,167,877

-

Class

Stock exchange on which
the Company is listed

Description

The number of shares per
one unit of shares is 100
shares.
-(Note) The "Number of shares issued as of the filing date" does not include shares issued upon exercise of stock acquisition rights from
November 1, 2023 to the filing date.
(2) Information on the stock acquisition rights, etc.
1) Details of stock option plans
Not applicable.
2) Details of other stock acquisition rights, etc.
Not applicable.
(3) Information on moving strike convertible bonds, etc.
Not applicable.
(4) Changes in the total number of issued shares and the amount of common stock and other

Date

From July 1, 2023
to September 30, 2023

Change in
the total
number ofissued shares(shares)－

Balance of thetotal number ofissued shares(shares)

Change incommonstock(Millionsof yen)Balance ofcommonstock(Millionsof yen)Change incapitalreserve(Millionsof yen)Balance ofcapitalreserve(Millionsof yen)938,241,277－

463,417－

181,383(Note) The total number of issued shares decreased to 11,073,400 due to the cancellation of treasury stock on October 18, 2023.

11

(5) Major shareholders(As of September 30, 2023)

Name

Address

The Master Trust Bank of Japan, Ltd.

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

Custody Bank of Japan, Ltd.
(Trust Account)

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

Share
Ownership(shares)

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

165,356,100

17.84

58,852,150

6.35

24,951,370

2.69

23,695,502

2.56

20,239,016

2.18

Bankplassen 2,
GOVERMENT OF NORWAY(Standing proxy: Citibank, N.A.)

0107 Oslo 1 Oslo 0107 NO(27-30, Shinjuku 6-chome, Shinjuku-ku,
Tokyo)

State Street Bank and Trust Company

P.O. Box 351, Boston, Massachusetts 02101

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

NATS CUMCO(Standing proxy: Mizuho Bank, Ltd.)C/O Citibank, New York 111
Wall Street, New York, NY, U.S.A.
(15-1, Konan 2-chome, Minato-ku, Tokyo)

Nippon Life Insurance Company

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

20,000,099

2.16

SSBTC CLIENT OMNIBUS
ACCOUNT(Standing proxy: The Hongkong andShanghai Banking Corporation
Limited)One Congress Street, Suite 1, Boston,
Massachusetts(11-1, Nihombashi 3-chome, Chuo-ku, Tokyo)

19,957,992

2.15

Hitachi Employees' Shareholding
Association

6-6, Marunouchi 1-chome, Chiyoda- ku,
Tokyo18,899,108

2.04

State Street Bank West Client Treaty 505234(Standing Proxy: Mizuho Bank, Ltd.)

1776 Heritage Drive, North Quincy, MA
02171, U.S.A.
(15-1, Konan 2-chome, Minato-ku, Tokyo)

17,741,387

1.91

JP Morgan Chase Bank 385632(Standing proxy: Mizuho Bank, Ltd.)

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

13,818,784

1.49

383,511,508

41.38

Total

-

(Notes) 1. NATS CUMCO is the nominee name of the depositary bank, Citibank, N.A., for the aggregate of the Company’s American
Depositary Receipts (ADRs) holders.
2. Some reports on substantial shareholdings regarding the Company under the Financial Instruments and Exchange Act areavailable for public inspection. However, the information in the reports is not described in the above table since theCompany does not confirm the actual status of shareholdings as of September 30, 2023. The major contents of the reports
are as follows.

Holders
Date on which the duty to file report
Number of shares
Ownership percentage to the total
number of issued sharesBlackRock Japan Co. Ltd and nine other persons
September 15, 2023
68,635,088 shares
7.32%

12

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

Sumitomo Mitsui Trust Asset Management Co., Ltd. andone other person
March 15, 2022
58,850,673 shares
6.08％(6) Information on voting rights
1) Issued shares(As of September 30, 2023)
Classification

Number of shares (shares)

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

Number of voting
rightsDescription

－

－

－

－

－

－

－

－

－

－

－

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

Common stock

11,466,000

Shares with full voting right (others)

Common stock

924,569,900

Shares less than one unit

Common stock

2,205,377－－

938,241,277－－

Number of issued shares
Total number of voting rights－

9,245,699

9,245,699－－(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.

132) Treasury stock, etc.
(As of September 30, 2023)

Name ofshareholder

Hitachi, Ltd.

Address

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

SAITA KOUGYOU
CO., LTD.

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

Nitto Jidosha

3268, Nagaoka, Ibarakimachi,

Kiki K.K.

Higashiibaraki-gun, Ibaraki

Mizuho Co., Inc.

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

Total

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

Total shares
held (shares)

Ownership
percentage tothe total
number ofissued shares(%)

11,434,900－

11,434,900

1.22

17,600－17,6000.00

10,500－10,500

0.00

3,000

－

3,000

0.00

11,466,000－

11,466,000

1.22(Note) The total number of issued shares decreased to 11,073,400 due to the cancellation of treasury stock on October 18, 2023.
2. Changes in Senior Management
There were no changes in senior managements from the filing date of the Annual Securities Report for the 154th businessterm pursuant to the Financial Instruments and Exchange of Act of Japan to September 30, 2023.

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.

14

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

6
7

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

5
7
11
8

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

7
7

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

78

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

59

Non-controlling interests

5

September 30, 2023

March 31, 2023

905,838
2,994,935
1,863,977
324,652
343,102

833,2832,874,987
1,646,188
346,916
227,161

6,432,504

5,928,535

522,586
514,763
1,773,300
2,403,920
1,341,589
486,542478,620496,8971,700,471
2,165,350
1,244,688
486,853

7,042,700

6,572,879

13,475,204

12,501,414

897,839
137,163
283,131
1,576,224
722,8311,474,394
484,126

777,650
141,861
263,748
1,548,497
720,961
1,241,366
472,095

5,575,708

5,166,178

1,340,846
327,377
405,5111,293,837
323,264
382,568

2,073,734

1,999,669

7,649,442

7,165,847

463,417
3,782,729
1,271,683(102,018)

462,817
3,637,184
846,392(3,539)5,415,811

4,942,854

409,951

392,713

Total equity

5,825,762

5,335,567

Total liabilities and equity

13,475,204

12,501,414

See accompanying notes to condensed quarterly consolidated financial statements.

F-1

Condensed Quarterly Consolidated Statement of Profit or Loss
Six months ended September 30, 2023 and 2022

Millions of yen

Revenues
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Financial income
Financial expenses
Share of profits (losses) of investments accounted for using the equity
methodEBIT (Earnings before interest and taxes)
Interest income
Interest charges
Income before income taxes
Income taxes
Net income
Net income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests
Earnings per share attributable to Hitachi, Ltd. stockholders
Basic
Diluted

Note
10

5,11
8,11
12
12

2023
4,960,069(3,730,503)
1,229,566(904,084)
21,566(42,775)
6,624(4,243)2022
5,416,779(4,101,557)
1,315,222(990,593)
74,508(134,430)
11,425(10,519)

33,232

26,677

339,886
19,731(37,561)
322,056(89,718)
232,338

292,290
11,308(21,453)
282,145(81,299)
200,846

209,10323,235

172,515
28,331

224.14223.88Yen
180.01179.8313

Condensed Quarterly Consolidated Statement of Comprehensive Income
Six months ended September 30, 2023 and 2022

Millions of yen

Net income

Note

2023
232,3382022
200,846

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

32,280(165)
397
32,512(18,257)
17,232571(454)

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

390,417
10,70423,376424,497

552,473(742)
38,198589,929457,009689,347

589,475
790,321641,493
47,854

681,216
109,105

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

See accompanying notes to condensed quarterly consolidated financial statements.

F-2

Condensed Quarterly Consolidated Statement of Profit or Loss
Three months ended September 30, 2023 and 2022

Millions of yen
Note

Revenues
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Financial income
Financial expenses
Share of profits (losses) of investments accounted for using the equity
methodEBIT (Earnings before interest and taxes)
Interest income
Interest charges
Income before income taxes
Income taxes
Net income
Net income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests
Earnings per share attributable to Hitachi, Ltd. stockholders
Basic
Diluted2023
2,637,581(1,982,469)
655,112(460,176)
22,372(27,328)
14,623-2022
2,846,963(2,147,215)
699,748(496,672)
70,341(71,280)
8,083(12,336)

13,387

13,777217,990
8,520(19,939)
206,571(55,905)
150,666

211,661
6,058(12,180)
205,539(51,742)
153,797

139,082
11,584

135,357
18,440149.61149.44Yen
142.17142.0313

Condensed Quarterly Consolidated Statement of Comprehensive Income
Three months ended September 30, 2023 and 2022

Millions of yen

Net income

Note

2023
150,666

2022
153,797

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(12,812)(256)
83(12,985)(11,869)559(11,310)

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

111,699
994
7,953
120,646

139,795
388
21,201
161,384

107,661
258,327

150,074
303,871

238,979
19,348269,053
34,818Other comprehensive income (OCI)
Comprehensive income
Comprehensive income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests

See accompanying notes to condensed quarterly consolidated financial statements.

F-3

Condensed Quarterly Consolidated Statement of Changes in Equity
Six months ended September 30, 2023

Millions of yen
2023

Commonstock
Balance at beginning of period

CapitalsurplusRetainedearnings(note 9)

Accumulated
othercomprehensive
income3,637,184

846,392(3,539)Treasurystock,
at cost

Total
Hitachi, Ltd.
stockholders’equityNoncontrollinginterests

Total equity

4,942,854

392,713

5,335,567

462,817-

Reclassified into retained earnings

-

-

6,282

(6,282)

-

-

-

-

Net income--

209,103--

209,10323,235

232,338

Other comprehensive income

-

-

-

432,390-432,390

24,619457,009

Dividends to Hitachi, Ltd. stockholders--(70,317)--(70,317)-(70,317)

Dividends to non-controlling interests

-

-

-

-

-

-

(30,291)(30,291)

Acquisition of treasury stock

-

-

-

-

(98,685)(98,685)-(98,685)

Sales of treasury stock

-

(152)

-

-

206

54

-

54

Issuance of new shares

600

600

-

-

-

1,200

-

1,200

Transfer to capital surplus fromretained earnings

-

-

-

-

-

-

-

-

Changes in non-controlling interests

-

(448)

477

(817)

-

(788)

(325)

(1,113)

Total changes in equity

600-

145,545425,291(98,479)

472,957

17,238490,195

Balance at end of period

463,417-

3,782,729

1,271,683(102,018)

5,415,811

409,951

5,825,762

Changes in equity

Six months ended September 30, 2022

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

Total equity

4,341,836

1,013,441

5,355,277

Commonstock

Capitalsurplus(note 5)Retainedearnings(note 9)

Accumulated
othercomprehensive
income461,731

46,1193,197,725

639,263(3,002)

Reclassified into retained earnings--

50,950(50,950)

-

-

-

-

Net income--

172,515--

172,515

28,331200,846

Other comprehensive income

-

-

-

508,701-

508,701

80,774589,475

Dividends to Hitachi, Ltd. stockholders--(62,870)--(62,870)-(62,870)

Dividends to non-controlling interests

-

-

-

-

-

-

(23,114)(23,114)Acquisition of treasury stock

-

-

-

-

(138,695)(138,695)-(138,695)

Sales of treasury stock

-

(94)

-

-

253

159

-

159

Issuance of new shares

1,086

1,086

-

-

-

2,172

-

2,172

Transfer to capital surplus fromretained earnings

-

-

-

-

-

-

-

-

Changes in non-controlling interests

-

1,548

-

25,721-

27,269(431,701)(404,432)

Balance at beginning of period

Treasurystock,
at costChanges in equity

Total changes in equity

1,086

2,540

160,595

483,472(138,442)

509,251(345,710)

163,541

Balance at end of period

462,817

48,6593,358,320

1,122,735(141,444)

4,851,087

667,7315,518,818

See accompanying notes to condensed quarterly consolidated financial statements.

F-4

Condensed Quarterly Consolidated Statement of Cash FlowsSix months ended September 30, 2023 and 2022

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

2023

2022

232,338

200,846

247,004
6,156
89,718(33,232)
13,540(11,105)(9,737)
165,915(137,760)(76,507)(29,928)889(70,472)
386,819
19,8107,032(36,842)(59,893)
316,926

282,415
62,69581,299(26,677)
3,744(66,147)(7,502)140,808(252,751)(53,265)(47,403)
51,023(83,696)285,389
11,476
11,595(21,500)(53,308)
233,652(116,587)(79,165)
20,689(137,894)(71,133)
45,262(12,049)(30,508)

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

81,792

127,223(4,970)(110,290)(5,289)(72,339)

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

57,653
3,199(65,854)(70,235)(20,099)(98,685)54(362)(194,329)

12,224
72,167(148,745)
310(62,727)(40,026)(138,695)
159(32,705)(435)(338,473)

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

60,24872,55574,349(102,811)

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

833,283
905,838

968,827
866,016

See accompanying notes to condensed quarterly consolidated financial statements.

F-5

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
(1) Nature of Operations
Hitachi, Ltd. (the Company) is a corporation domiciled in Japan, whose shares are listed on the Tokyo Stock Exchange. The
condensed quarterly consolidated financial statements of the Company as of and for the six months ended September 30, 2023
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 five segments consisting of Digital
Systems & Services, Green Energy & Mobility, Connective Industries, Automotive Systems and Others.
(2) Basis of Presentation
As the Company meets the requirements of a “Specified Company applying Designated International Financial ReportingStandards” pursuant to Article 1-2 of the Ordinance on Terminology, Forms and Preparation Methods of Quarterly Consolidated
Financial Statements (Cabinet Office Ordinance No.64 of 2007), the condensed quarterly consolidated financial statements of theCompany have been prepared in accordance with International Accounting Standards (IAS) 34 “Interim Financial Reporting,” aspermitted by the provision of Article 93 of the Ordinance. They do not include all the information and disclosures required for acomplete set of financial statements prepared in accordance with International Financial Reporting Standards (IFRS), and should beread in conjunction with the financial statements and notes included in the Company’s annual consolidated financial statements forthe year ended March 31, 2023.
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, 2023.
(3) Material Accounting Policies
Material accounting policies adopted in preparation of the condensed quarterly consolidated financial statements are consistent withthose used in the preparation of the Company’s annual consolidated financial statements for the year ended March 31, 2023.
Income taxes for the six months ended September 30, 2023 are computed using the estimated annual effective tax rate.

F-6

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
(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 five reportable segments, corresponding to categories of activities classified primarily by thesimilarities for the nature of markets, products and services, and economic characteristics. Several operating segments areaggregated into Green Energy & Mobility and Connective Industries for financial reporting purposes so that users of the financial
statements better understand the Company’s financial position and business performance. The Company aggregates operating
segments based on the similarities of economic characteristics mainly using the segment profit (loss) margin ratio of operating
segments. The primary products and services included in each segment are as follows:
Digital Systems & Services:
Digital solutions (System integration, Consulting, Cloud services), IT products (Storage, Servers), Software, and ATMs
Green Energy & Mobility:
Energy solutions (Power grids, Renewable energy, Nuclear), and Railway systems
Connective Industries:
Building systems (Elevators, Escalators), Smart life & ecofriendly systems (Home appliances, Air conditioners), Measurement andanalytical systems (Semiconductor manufacturing equipment, Clinical analyzers), Industry & distribution solutions, Water &environment solutions, and Industrial machinery
Automotive Systems:
Powertrain, Chassis, Advanced driver assistance, and Motorcycle systems
Others:Property management and others
Effective from April 1, 2023, a portion of the business previously included in the Green Energy & Mobility segment has beentransferred to Business Management Reinforcement Division, and included in Others. Figures for the six months ended September
30, 2022 have been restated on the basis of the reclassification.
In August 2022, the Company sold a certain number of shares of Hitachi Construction Machinery Co., Ltd. (Hitachi Construction
Machinery). As a result, Hitachi Construction Machinery and its subsidiaries, which were included in the Hitachi Construction
Machinery segment, became equity-method associates of the Company. In January 2023, the Company sold all shares of Hitachi
Metals, Ltd. (currently Proterial, Ltd.). As a result, Hitachi Metals, Ltd. was deconsolidated. Accordingly, the Hitachi Construction
Machinery segment and the Hitachi Metals segment ceased to be business segments, but the segment figures for the six months
ended September 30, 2023 and 2022 are disclosed individually to enhance fair disclosure. From the second quarter of the fiscal year
ended March 31, 2023, the Company includes its share of profits (losses) of investments accounted for using the equity method of
Hitachi Construction Machinery and its subsidiaries after the transfer of shares in Corporate items and Eliminations.

F-7

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
The following tables show business segment information for the six months ended September 30, 2023 and 2022.
Millions of yen
2023
Segment
Green Energy
Connective& Mobility
Industries

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

1,112,099
80,403
1,192,502
135,061

1,317,555
28,158
1,345,713
79,671

Automotive
Systems

1,369,447
94,403
1,463,850
145,719

1,030,966
4,251
1,035,217
41,291Millions of yen

2023
Segment
HitachiConstruction
Machinery
Revenues
Revenues from External Customers
Revenues from Intersegment Transactions
Total Revenues
Segment Profit (Loss)

Hitachi
Metals-OthersSubtotal

Corporate
items andEliminations

120,152
121,666
241,818
7,849

4,950,219
328,881
5,279,100
409,591

9,850(328,881)(319,031)(8,653)-

Total

4,960,069
4,960,069
400,938
Millions of yen

2022
Segment
Green Energy
Connective& Mobility
Industries

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

1,015,825
84,062
1,099,887
117,484

1,037,363
24,9901,062,353
54,333

Automotive
Systems

1,329,265
98,517
1,427,782
149,189881,6242,426
884,050
11,846
Millions of yen

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

474,168946
475,11443,226

Hitachi
MetalsOthersSubtotal

Corporate
items andEliminations

554,608
14,099568,707
27,633

118,590
115,202
233,792(1,640)5,411,443
340,242
5,751,685
402,071

5,336(340,242)(334,906)(9,014)

Total

5,416,779
5,416,779
393,057

Segment profit (loss) is measured by Adjusted EBITA. Adjusted EBITA is defined as Adjusted Earnings before Interest, Taxes andAmortization. Adjusted EBITA represents profit (loss) calculated by deducting selling, general and administrative expenses fromgross profit, adding back amortization of intangible assets, etc. recognized upon business combinations, and adding or deducting
share of profits (losses) of investments accounted for using the equity method.
Intersegment transactions are generally recorded at the same prices used in arm’s length transactions. Corporate items include
corporate expenses not allocated to individual business segments, such as expenditures for advanced R&D, a part of net gain (loss)
on share of profits (losses) of investments accounted for using the equity method, and others.

F-8

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
Adjustments to income before income taxes from segment profit (loss) are as follows.
Millions of yen
2023
Segment Profit (Loss)
Amortization of Intangible assets, etc.
recognized upon business combinations
Other income
Other expenses
Financial income
Financial expenses
EBIT (Earnings before interest and taxes)
Interest income
Interest charges
Income before income taxes

F-9

2022
400,938

393,057(42,224)(41,751)

21,566(42,775)
6,624(4,243)339,886
19,731(37,561)
322,056

74,508(134,430)
11,425(10,519)292,290
11,308(21,453)
282,145

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
(5) Business Acquisitions and Divestitures
The following are the main Business Acquisitions and Divestitures for the six months ended September 30, 2023, including theperiod up to the approval date of the condensed quarterly consolidated financial statements.
(a) Sale of shares of Hitachi Astemo, Ltd. (hereinafter “Hitachi Astemo”)
On March 30, 2023, the Company entered into the following two agreements regarding the transfer of a part of the shares ofHitachi Astemo, a consolidated subsidiary of the Company in the Automotive Systems segment, to Hitachi Astemo and Honda
Motor Co., Ltd. (hereinafter “Honda”) and for inviting JIC Capital, Ltd. (hereinafter “JICC”) as a new joint partner.
(i) Share Subscription Agreement with JICC-01 Limited Partnership (hereinafter “JICC-01”) managed by JICC-01 G.K., which
is a wholly owned subsidiary of JICC including that Hitachi Astemo issues Class shares to JICC-01, and Hitachi Astemo
purchases a part of shares of its common stocks held by the Company, using a portion of the funds raised through theissuance of Class shares(ii) Agreement for investment in kind and share transfer with Honda including that Hitachi Astemo issues common stocks to
Honda in exchange for Honda to invest the shares of Hitachi Astemo Electric Motor Systems, Ltd. in kind and the Company
transfers a part of shares of Hitachi Astemo’s common stocks to Honda
On October 16, 2023, the series of transactions was completed. The Company’s consideration was 157,807 million yen.
As a result of the series of transactions, the Company’s ownership ratio of shares of Hitachi Astemo decreased from 66.6% to40%, and Hitachi Astemo turned into an equity-method associate of the Company.
An expected gain on the sale of Hitachi Astemo shares in the amount of approximately 122.0 billion yen will be recognized in
Other income in the consolidated statement of profit or loss for the fiscal year ending March 31, 2024. Furthermore, noncontrolling interests in Hitachi Astemo will decrease approximately 272.0 billion yen in the consolidated statement of changes
in equity for the fiscal year ending March 31, 2024.
The following are the main Business Acquisitions and Divestitures for the six months ended September 30, 2022.
(a) Additional acquisition of shares of Hitachi Energy Ltd (hereinafter “Hitachi Energy”)
On September 30, 2022, the Company signed an agreement with ABB Ltd (hereinafter “ABB”) to acquire 19.9% of the sharesof Hitachi Energy, a consolidated subsidiary of the Company in the Green Energy & Mobility segment, owned by ABB by
exercising call options, owned by the Company.
The consideration was 1,679 million U.S. dollars (243,200 million yen).
The Company derecognized the non-controlling interests and recognized other accounts payable in Other financial liabilities
and the difference between other accounts payable and non-controlling interest in capital surplus.
As a result of additional acquisition of shares on December 28, 2022, the Company’s ownership ratio of shares of Hitachi
Energy increased from 80.1% to 100% and Hitachi Energy has become a wholly owned subsidiary of the Company.
Simultaneously, the Company completed the payment of the consideration to ABB and derecognized the Other financial
liabilities.

F-10

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
(b) Sale of shares of Hitachi Construction Machinery Co., Ltd. (hereinafter “Hitachi Construction Machinery”)
On January 14, 2022, the Company entered into an agreement regarding the transfer of a part of the shares of Hitachi
Construction Machinery, a consolidated subsidiary of the Company in the Hitachi Construction Machinery segment, with HCJI
Holdings G.K., a special purpose company which is jointly invested by HCJ Holdings Ltd., a special purpose company wholly
owned by a fund that Japan Industrial Partners, Inc. manages, operates, and provides information, and Citrus Investment LLC, aspecial purpose company wholly owned by ITOCHU Corporation. In accordance with this agreement, a certain number ofshares of Hitachi Construction Machinery common stocks owned by the Company were transferred to HCJI Holdings G.K., on
August 23, 2022.
As a result of this transfer of shares, the Company’s ownership ratio of shares of Hitachi Construction Machinery decreased
from 51.4% to 25.4%, and Hitachi Construction Machinery turned into an equity-method associate of the Company. The
Company’s consideration was 182,457 million yen.
A gain on the sale of Hitachi Construction Machinery shares in the amount of 39,211 million yen was recognized in Other
income in the condensed quarterly consolidated statement of profit or loss for the six months ended September 30, 2022.
Furthermore, changes in non-controlling interests in the condensed quarterly consolidated statement of changes in equity
include derecognition of non-controlling interest in Hitachi Construction Machinery as a result of its deconsolidation.
The following table shows the assets, liabilities, and equity of Hitachi Construction Machinery as of March 31, 2022.
Millions of yen
87,583
237,792368,267
62,193
8,421
764,256
26,662
63,197442,904
55,36758,967
29,321
676,418
1,440,674

Cash and cash equivalents
Trade receivables and contract assets
Inventories
Investments in securities and other financial assets
Other current assets
Total current assets
Investments accounted for using the equity method
Investments in securities and other financial assets
Property, plant and equipment
Goodwill
Other intangible assets
Other non-current assets
Total non-current assets
Total assets
Short-term debt
Current portion of long-term debt
Other financial liabilities
Trade payables
Accrued expenses
Contract liabilities
Other current liabilities
Total current liabilities
Long-term debt
Retirement and severance benefits
Other non-current liabilities
Total non-current liabilities
Total liabilities

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

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

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

F-11

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
The following is a material Business Acquisition other than the above.
(a) Acquisition of Thales’ ground transportation systems business
On August 3, 2021, Hitachi Rail Ltd. (hereinafter “Hitachi Rail”), a consolidated subsidiary of the Company in the Green
Energy & Mobility segment, signed an agreement with Thales S.A. (hereinafter “Thales”) to acquire the ground transportation
systems business in order to expand the rail signaling 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 theusual conditions including regulatory and antitrust clearances and is expected to be completed by the first half of 2024. Hitachi
Rail agreed on an enterprise value of 1,660 million euro (approximately 262.2 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.
(6) Trade Receivables and Contract Assets
The components of trade receivables and contract assets are as follows:
Millions of yen
September 30, 2023
Accounts receivable

March 31, 2023

1,936,525

1,972,168

Contract assets

954,841804,500

Others103,569

98,319Total

2,994,935

2,874,987

Trade receivables and contract assets are stated as net of the allowance for doubtful receivables.
Others include electronically recorded monetary claims and notes receivable.

F-12

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
(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 tomaturity using discount rates that reflect the time to maturity and credit risk.
Investment securities with quoted market prices are estimated using the quoted share prices. In the absence of an active market
for investment securities, quoted prices for similar investment securities, quoted prices associated with transactions that are notdistressed for identical or similar investment securities or other relevant information including market interest rate curves,referenced credit spreads or default rates, are used to determine fair value. If significant inputs of fair value measurement areunobservable, the Company uses price information provided by financial institutions to evaluate such investments. The
information provided is corroborated by the income approach using its own valuation model, or the market approach using
comparisons with prices of similar securities.
The fair value of long-term loans receivable is estimated based on the present value of future cash flows using the interest rateapplicable to an additional loan of the same type.
Derivative assets are measured at fair value based on quoted prices associated with transactions that are not distressed, prices ininactive markets, or based on models using interest rate curves and forward and spot prices for currencies and commodities. If
significant inputs are unobservable, the Company mainly uses the income approach or the market approach to corroborate
relevant information provided by financial institutions and other available information.
Long-term debt
The fair value of long-term debt is estimated based on quoted market prices or the present value of future cash flows using themarket interest rates applicable to the same contractual terms.
Other financial liabilities
Derivative liabilities are measured at fair value based on quoted prices associated with transactions that are not distressed, prices
in inactive markets, or based on models using interest rate curves and forward and spot prices for currencies and commodities. If
significant inputs are unobservable, the Company uses mainly the income approach or the market approach to corroborate
relevant information provided by financial institutions and other available information.

F-13

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
(b) Financial Instruments Measured at Amortized Cost
The carrying amounts and estimated fair values of the financial instruments measured at amortized cost as of September 30 andMarch 31, 2023 are as follows.
The fair value estimated for financial assets and liabilities measured at amortized cost is classified in Level 2 of the fair value
hierarchy.
Millions of yen
September 30, 2023
Carrying amounts

March 31, 2023

Estimated
fair values

Carrying amounts

Estimated
fair values

AssetsInvestments in securities and otherfinancial assets
Lease receivables

23,967

24,58622,85822,858Debt securities

48,711

48,49046,72946,729Long-term loans receivable

1,602

1,602

385

385

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

160,000

157,243

160,000

159,250

1,062,388

1,059,804

1,022,994

1,022,130[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-14

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
The following tables present the assets and liabilities that are measured at fair value on a recurring basis as of September 30 andMarch 31, 2023.
September 30, 2023
Class of financial instruments

Millions of yen
Level 1

Level 2

Level 3

Total

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

493-

34,469Debt securities

9,512

4,883

2,937

17,332-

127,888-

127,888

224,016-

107,699

331,715

234,021

132,771

145,105

511,897-

76,857-76,857-76,857-76,857

Derivatives

34,962Financial assets measured at fair value
through other comprehensive income:Investments in securities and otherfinancial assets
Equity securities
Total financial assets at fair value
Financial liabilities measured at fair value
through profit or loss:
Other financial liabilities
Derivatives
Total financial liabilities at fair value
March 31, 2023
Class of financial instruments

Millions of yen
Level 1

Level 2

Level 3

Total

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

335

Debt securities
Derivatives-

28,352

28,687

8,684

4,145

4,959

17,788-78,327-78,327234,175-

104,445

338,620

243,194

82,472

137,756

463,422-

49,385-49,385-49,385-49,385

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

F-15

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
The following tables present the changes in Level 3 instruments measured on a recurring basis for the six months ended
September 30, 2023 and 2022.
September 30, 2023
Level 3 financial assets
Balance at beginning of period
Gain (loss) in profit or loss [1]Gain in OCI [2]Purchases
Sales and redemption
Other
Balance at end of period
Unrealized gain relating tofinancial assets held at end of period [3]Millions of yen
Equitysecurities

Debt
securities

Total

132,797
1,353
3,887
4,183
(3,569)3,517
142,168

4,959
(40)
26
(733)
(1,275)
2,937

137,756
1,313
3,887
4,209
(4,302)
2,242
145,105

1,321

-

1,321

September 30, 2022
Level 3 financial assets
Balance at beginning of period
Gain in profit or loss [1]Loss in OCI [2]Purchases
Sales and redemption
Acquisitions and divestitures
Other
Balance at end of period
Unrealized gain relating tofinancial assets held at end of period [3]Millions of yen
Equitysecurities

Debt
securities

Total

123,632
1,629(10,888)
15,136(575)(8,118)3,236
124,052

5,686
219
509
(503)
(547)
19
5,383

129,318
1,848(10,888)
15,645(1,078)(8,665)3,255
129,435

1,625

219

1,844

[1] Gain (loss) in profit or loss related to Financial assets measured at fair value through profit or loss is included in Financial
income and Financial expenses in the condensed quarterly consolidated statement of profit or loss.
[2] Gain (loss) in OCI related to Financial assets measured at fair value through other comprehensive income is included in Net
changes in financial assets measured at fair value through OCI in the condensed quarterly consolidated statement ofcomprehensive income.
[3] Unrealized gain relating to Financial assets measured at fair value through profit or loss held at the end of period is includedin Financial income in the condensed quarterly consolidated statement of profit or loss.
Fair values are measured by the finance departments in accordance with the Company’s policies and procedures. Valuation
models are determined so that they reflect each financial instrument’s nature, characteristics and risks most appropriately. The
finance departments continually examine changes in important inputs that could affect the fair value. In case the fair value of afinancial instrument was significantly impaired, administrators review and approve the impairment loss.

F-16

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
(8) Employee Benefits(Revision of defined benefit pension plan)
The following is the main revision of defined benefit pension plan for the six months ended September 30, 2022.
Since the Company and a consolidated subsidiary of the Company introduced a risk-sharing corporate pension plan on April 1,
2019, for current employees participating in the defined benefit pension plan managed by the Hitachi Pension Fund, the same has
been promoted to the other subsidiaries that participate in pension plan managed by the Hitachi Pension Fund. On April 1, 2022,
newly 43 subsidiaries have changed their pension plans for current employees from defined benefit pension plan to risk-sharing
corporate pension plan, and now the revision of Hitachi group pension plan managed by the Hitachi Pension Fund has been almost
completed.
Under this plan, a risk reserve contribution is determined in advance in accordance with the rules governing the plan, and thepension benefits are adjusted annually based on the financial position of the plan to maintain balanced finance.
In terms of the corresponding accounting treatment for retirement benefits, risk-sharing corporate pension plans, for which anentity accepts contribution obligations to the extent stipulated in the rules but has no further obligations to make any additional
contributions, are classified as defined contribution plans. Since the risk-sharing corporate pension plans, which subsidiaries
introduced on April 1, 2022, impose no additional contribution obligations, at the time of the shift to the revised plan, thedifference between the defined benefit obligations related to the portion transferred to the revised plan and the amount of assets
transferred to the revised plan corresponding to the decrease in defined benefit obligations, 51,185 million yen, was recognized as asettlement loss in Other expenses in the condensed quarterly consolidated statement of profit or loss for the six months ended
September 30, 2022. And in the condensed quarterly consolidated statement of financial position for the six months ended
September 30, 2022, Other non-current assets decreased by 49,334 million yen, and Retirement and severance benefits increased
by 1,851 million yen, respectively. Excluding the settlement loss in above, the impacts of changing pension plans on profit or loss
for the fiscal year ended March 31, 2023 were not material.

F-17

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
(9) Dividends
Dividends paid on the Company’s common stock for the six months ended September 30, 2023 are as follows:

Decision
The Board of Directors
on May 12, 2023

Cash dividends(millions of yen)
70,317

Appropriation
from
Retained earnings

Cash dividends
per share (yen)75.0

Record date

Effective date

March 31, 2023

June 2, 2023

Dividends on the Company's common stock whose record date falls in the six months ended September 30, 2023 and the effective
date falls in the next period are as follows:

Decision
The Board of Directors
on October 27, 2023

Cash dividends

Appropriation

Cash dividends(millions of yen)fromper share (yen)74,144Retained earnings

Record date

Effective date

80.0 September 30, 2023 November 27, 2023

Dividends paid on the Company’s common stock for the six months ended September 30, 2022 are as follows:

Decision
The Board of Directors
on May 13, 2022

Cash dividends(millions of yen)
62,870Appropriation
from
Retained earnings

Cash dividends
per share (yen)65.0

Record date

Effective date

March 31, 2022

June 2, 2022

Dividends on the Company's common stock whose record date falls in the six months ended September 30, 2022 and the effective
date falls in the next period are as follows:

Decision
The Board of Directors
on October 28, 2022

Cash dividends(millions of yen)
66,277

Appropriation
from
Retained earnings

F-18

Cash dividends
per share (yen)Record date

Effective date

70.0 September 30, 2022 November 29, 2022

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
(10) Revenues(a) Disaggregation of revenue
The Company derives revenues primarily from contracts with customers.
The disaggregation of revenue attributable to each reportable segment and geographic area for the six months ended
September 30, 2023 and 2022 are as follows.
Effective from April 1, 2023, the Company reclassified its reportable segments. Accordingly, figures for the six months ended
September 30, 2022 have been restated on the basis of the reclassification. Details of the reclassification are described in note4.
Millions of yen
2023
Overseas
Revenues
Subtotal

Total
Revenues

27,828417,965

1,192,502

464,877

201,276

1,187,831

1,345,713

130,481

101,068

18,077

779,958

1,463,850

349,286

275,396

89,361

79,477

793,520

1,035,217

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Others

205,810

26,141

3,039

4,751

2,077

36,008

241,818

Subtotal

2,063,818

1,245,674

869,234

771,639

328,735

3,215,282

5,279,100

Corporate items and Eliminations(293,989)(16,206)(1,848)(4,406)(2,582)(25,042)(319,031)

Total

1,769,829

1,229,468

867,386

767,233

326,153

3,190,240

4,960,069

Japan

Asia

North
America

Europe

Other
Areas

Digital Systems & Services

774,537

113,079

165,476

111,582

Green Energy & Mobility

157,882

226,836

294,842

Connective Industries

683,892

530,332

Automotive Systems

241,697

Hitachi Construction Machinery
Hitachi Metals

Millions of yen
2022
Overseas
Revenues
Subtotal

Total
Revenues

25,090400,802

1,099,887

361,277

145,075

905,1141,062,353

129,328

100,744

18,826775,177

1,427,782

341,442

200,164

71,22055,518668,344884,050

80,64083,04094,67180,460136,303

394,474

475,114

Hitachi Metals

211,461

122,472

194,653

27,341

12,780357,246

568,707

Others196,137

28,236

3,248

4,179

1,992

37,655

233,792

Subtotal

2,212,873

1,417,395

978,259

747,574

395,584

3,538,812

5,751,685

Corporate items and Eliminations(309,924)(19,671)(1,054)(3,949)(308)(24,982)(334,906)

Total

1,902,949

1,397,724

977,205

743,625395,276

3,513,830

5,416,779

Japan

Asia

North
America

Europe

Other
Areas

Digital Systems & Services

699,085

119,885

153,474

102,353

Green Energy & Mobility

157,239

196,041

202,721

Connective Industries

652,605526,279

Automotive Systems

215,706

Hitachi Construction Machinery

The Digital Systems & Services segment consists of Front Business, IT Services, and Services & Platforms, for which revenue
amounted to 482,022 million yen, 454,775 million yen and 476,001 million yen for the six months ended September 30, 2023
and 445,265 million yen, 411,755 million yen and 450,727 million yen for the six months ended September 30, 2022,
respectively (including intersegment transactions). Front Business and IT Services are operated mainly in Japan, and Services

F-19Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
& Platforms is operated mainly in Japan, North America and Europe.
The Company’s revenues include revenue recognized based on the pattern of the cost accrual arising from long-term projects.
Of the revenue recognized during the six months ended September 30, 2023 and 2022, the amount of revenue recognizedbased on the pattern of the cost accrual arising from long-term projects was 991,656 million yen and 777,099 million yen,respectively.
(b) Information about satisfaction of performance obligations
The following is information about satisfaction of performance obligations related to major goods and services of eachreportable segment.
(Digital Systems & Services)
Front Business and IT Services primarily provide goods and services such as system integration, consulting and cloudservice. Services & Platforms primarily provides IT products and software.
These long-term projects in system integration, consulting and cloud service businesses provide goods and services
according to customers’ specifications over a specified period of time, and revenue is recognized mainly based on thepattern 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 performance obligations are satisfied.
In IT products and software businesses, revenue is recognized when control over the goods is transferred to customers as
performance obligations are satisfied at the point in time upon the completion or upon delivery of the goods. Mostly,
payment terms stipulate that the consideration is received within one year after the performance obligation is satisfied, andthere are no significant transactions in which payment terms include deferred payments, etc.
(Green Energy & Mobility and Connective Industries)
The Green Energy & Mobility segment includes revenue from businesses such as energy solutions and railway systems.
The energy solutions business is operated mainly in Asia, North America, and Europe. The railway systems business is
operated mainly in Europe. The Connective Industries segment includes revenue from businesses such as building systems,
smart life & ecofriendly systems, measurement and analytical systems, and industry & distribution solutions. The building
systems business is operated mainly in China, the smart life & ecofriendly systems business is operated mainly in Japan,
the measurement and analytical systems business is operated mainly in Japan, Asia, North America, and Europe, and theindustry & distribution solutions business is operated mainly in Japan.
Long-term projects related to contracts such as construction in these segments involve manufacturing and providing goods
based on customers’ specifications over a specified period of time. As performance obligations are satisfied over time,revenue is recognized mainly based on the pattern of the cost accrual (the progress of the project mostly based on the cost
incurred relative to the estimated total cost). In addition, these segments provide certain services promised in the contracts
such as maintenance throughout the duration of the contract, and recognize revenue over time based on the passage of time.
Many of the contracts require payments based on milestones, and, in some cases, payments are made before performanceobligations are satisfied.
Further, in the sale of elevators, home appliances, measurement and analytical systems, industrial equipment, etc. includedin the Connective Industries segment, revenue is recognized when control over the goods is transferred to customers as
performance obligations are satisfied at the point in time upon the completion or upon delivery of the goods. Mostly,
payment terms stipulate that the consideration is received within one year after the performance obligation is satisfied, andthere are no significant transactions in which payment terms include deferred payments, etc.
(Automotive Systems)
In the Automotive Systems segment, performance obligations are generally satisfied at a point in time upon completion or
upon delivery of the goods, and revenue is recognized when control over goods is transferred to customers. Mostly,
payment terms stipulate that the consideration is received within one year after the performance obligation is satisfied, andthere are no significant transactions in which payment terms include deferred payments, etc.

F-20

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
(11) Other Income and Expenses
The main components of other income and expenses for the six months ended September 30, 2023 and 2022 are as follows:
Millions of yen
2023

2022

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

9,045

7,356

Impairment losses(6,156)(62,695)

Net gain (loss) on business reorganization and others

11,105

66,147

Special termination benefits(2,145)(2,911)

Impairment losses are mainly recognized on property, plant and equipment, goodwill and other intangible assets. Net gain (loss)
on business reorganization and others includes gains and losses related to obtaining and losing control of investees and gains andlosses related to obtaining and losing significant influence over investees.
Restructuring charges (structural reform expenses) included in Other expenses for the six months ended September 30, 2023 and2022 were 8,301 million yen and 65,606 million yen, respectively. Restructuring charges (structural reform expenses) include
impairment losses and special termination benefits. Impairment losses for the six months ended September 30 2022 include
38,419 million yen in the Green Energy & Mobility segment, mainly consisting of 38,394 million yen in impairment losses on
goodwill in the power grids business due to the rise in discount rate following the significant rise in interest rates, etc. In addition,
the settlement loss of 51,185 million yen recognized for the six months ended September 30, 2022 due to the change to the risksharing corporate pension plan introduced by subsidiaries on April 1, 2022, is included in Other expenses for the six months
ended September 30, 2022. Details of this transaction are described in note 8.
(12) Financial Income and Expenses
The main components of financial income and expenses for the six months ended September 30, 2023 and 2022 are as follows:
Millions of yen
2023

2022

Dividends received

3,221

5,059

Exchange gain (loss)

2,331

4,910

Dividends received for the six months ended September 30, 2023 and 2022 are from financial assets measured at fair value
through other comprehensive income.

F-21

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
(13) Earnings Per Share (EPS) Information
The calculations of basic and diluted EPS attributable to Hitachi, Ltd. stockholders for the six months ended September 30, 2023
and 2022 are as follows:
Six months ended September 30
Number of shares
2023
Weighted average number of shares on which basic EPS is calculated

2022

932,918,400

958,347,984

Stock options

387,620

417,340

Restricted stock

643,349

536,020

Restricted stock units

32,681

33,462

933,982,050

959,334,806

Effect of dilutive securities

Number of shares on which diluted EPS is calculated

Millions of yen
2023

2022

Net income attributable to Hitachi, Ltd. stockholders
Basic
Effect of dilutive securities
Diluted209,103

172,515--

209,103

172,515
Yen

2023

2022

EPS attributable to Hitachi, Ltd. stockholders
Basic224.14180.01

Diluted223.88179.83F-22

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
The calculations of basic and diluted EPS attributable to Hitachi, Ltd. stockholders for the three months ended September 30,
2023 and 2022 are as follows:
Three months ended September 30
Number of shares
2023
Weighted average number of shares on which basic EPS is calculated

2022

929,610,905

952,053,876

Stock options

387,620

417,340

Restricted stock652,216

520,326

Restricted stock units

38,09928,273

930,688,840

953,019,815

Effect of dilutive securities

Number of shares on which diluted EPS is calculated

Millions of yen
2023

2022

Net income attributable to Hitachi, Ltd. stockholders
Basic
Effect of dilutive securities
Diluted139,082

135,357--

139,082

135,357
Yen

2023

2022

EPS attributable to Hitachi, Ltd. stockholders
Basic

149.61

142.17

Diluted149.44142.03F-23

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
(14) Contingencies
Litigation
In November 2017, a subsidiary in Japan received a complaint that was filed against three companies, namely a construction
company of a condominium complex, the subsidiary and a secondary subcontractor, by a contractee in Japan seeking
approximately 45.9 billion yen in compensation for expenses allegedly incurred arising from concerns over partial deficienciesof piling work during the construction phases of the condominium complex, which the subsidiary contracted as the primary
subcontractor. The compensation claim against these three companies was amended to approximately 51.0 billion yen in July
2018 and to approximately 50.5 billion yen in September 2022 by the contractee.
In relation to the aforementioned lawsuit, in April 2018, the subsidiary in Japan received a complaint that was filed against thesubsidiary and the secondary subcontractor, by the construction company of the condominium complex seeking approximately
49.6 billion yen in compensation for expenses allegedly incurred arising from the aforementioned lawsuit. In July 2018, thecompensation claim against these two companies was amended to approximately 54.8 billion yen by the construction companyof the condominium complex. Although the subsidiary in Japan will address these claims and explain its position, there can be
no assurance that it will not be held liable for any amounts claimed.
In December 2017, a subsidiary in Europe received a complaint filed by a customer in Europe seeking compensation forconsequential losses of 263 million euro (41,561 million yen) and interest allegedly incurred by performance defects of apower plant. As of September 30, 2023, the amount of compensation claimed by the customer was changed to 270 million
euro (42,666 million yen). Although the subsidiary in Europe will vigorously defend itself against this lawsuit, there can be noassurance that it will not be held liable for any amounts claimed.
The Company and its subsidiaries execute a number of business reorganizations, including mergers, acquisitions anddivestitures. Contracts for these reorganizations include clauses for transaction price adjustments subsequent to thereorganizations. There is a possibility products or services provided by the Company and its subsidiaries contain defects. As
the result of price adjustments, or in compensation for defects in products or services etc. there is a possibility that theCompany pays for any amounts.
Depending upon the outcome of the above legal proceedings, there may be an adverse effect on the consolidated financial
position or results of operations. Currently, the Company is unable to estimate the adverse effect, if any, of many of theseproceedings. The actual amount of fines, surcharge payments or any other payments resulting from these legal proceedings
may be different from the accrued amounts.
In addition to the above, the Company and its subsidiaries are subject to legal proceedings and claims which have arisen in theordinary course of business and have not been finally adjudicated. These actions when ultimately concluded and determined
will not, in the opinion of management, have a material adverse effect on the condensed quarterly consolidated financial
statements of the Company and subsidiaries.

F-24

Notes to Condensed Quarterly Consolidated Financial Statements
September 30, 2023
(15) Subsequent Events(a) Cancellation of Treasury Shares
The Company cancelled its treasury shares pursuant to Article 178 of the Companies Act of Japan, as follows.
(i) Class of cancelled shares
Common stock of the Company(ii) Number of cancelled shares
11,073,400 shares (1.18% of total number of outstanding shares before the cancellation)(iii) Total number of outstanding shares after the cancellation
927,167,877 shares(iv) Cancellation date
October 18, 2023(v) Accounting
Decreased in Capital surplus(16) Approval of Condensed Quarterly Consolidated Financial Statements
The condensed quarterly consolidated financial statements were approved on November 10, 2023 by Keiji Kojima, President andCEO of the Company.

F-25

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

Confirmation Letter
Article 24-4-8, Paragraph 1 of the Financial Instruments and Exchange Act of Japan
Director, Kanto Local Finance Bureau
November 10, 2023
Kabushiki Kaisha Hitachi Seisakusho
Hitachi, Ltd.
Keiji Kojima, President & CEO
Yoshihiko Kawamura, Executive Vice President and Executive Officer
6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo
Tokyo Stock Exchange, Inc.
(2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)
Nagoya Stock Exchange, Inc.
(8-20, Sakae 3-chome, Naka-ku, Nagoya)A-1

1. Matters Related to Adequacy of Statements Contained in the Quarterly Report
Mr. Keiji Kojima, President & CEO, and Mr. Yoshihiko Kawamura, Executive Vice President and Executive Officer,
confirmed that statements contained in the Quarterly Report for the second quarter of the 155th fiscal year (from July 1, 2023 to
September 30, 2023) were adequate under the Financial Instruments and Exchange Act.
2. Special Notes
None.

A-2