10-Year Financial Data

Millions of yen

U.S. GAAPFor the year:

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014

Revenues¥9,761,970¥10,000,369¥8,968,546¥9,315,807¥9,665,883¥9,041,071¥9,563,791

Operating income

127,146

202,159444,508

412,280

422,028

538,288

600,479

EBIT (Earnings before interest and taxes)(275,239)

77,815443,812573,218

358,015585,662551,018

Net income (loss) attributable to
Hitachi, Ltd. stockholders(787,337)(106,961)

238,869

347,179

175,326

264,975

241,301

Cash flows from operating activities

558,947

798,299

841,554447,155

583,508

439,406

447,348

Cash flows from investing activities(550,008)(530,595)(260,346)(195,584)(553,457)(491,363)(610,255)

Free cash flows
Cash flows from financing activities
Cash dividends declared
Capital expenditures(Property, plant and equipment)

8,939

267,704

581,208

251,571

30,051(51,957)(162,907)

284,388(502,344)(584,176)(167,838)(180,445)

32,968250,335

9,971‒

36,13336,727

47,69050,711

57,944

788,466

546,326556,873

649,234

742,537

849,877

848,716

Depreciation(Property, plant and equipment)

478,759441,697382,732

360,358

300,664

329,833

349,614

R&D expenditures

416,517372,470

395,180

412,514341,310351,426

335,515

At year-end:
Total assets

9,403,709

8,964,464

9,185,629

9,418,526

9,809,230

11,016,899

12,395,379

Property, plant and equipment

2,393,946

2,219,804

2,111,270

2,025,538

2,279,964

2,342,091

2,564,105

Total Hitachi, Ltd. stockholders equity

1,049,951

1,284,658

1,439,865

1,771,782

2,082,560

2,651,241

2,930,309

Interest-bearing debt

2,820,109

2,367,143

2,521,551

2,396,454

2,370,079

2,823,049

3,354,616
Yen

Per share data:
Net income (loss) attributable to
Hitachi, Ltd. stockholders:Basic¥(236.86)¥(29.20)¥52.89¥76.81¥37.28¥54.86¥49.97

Diluted(236.87)(29.20)

49.38

71.86

36.29

54.85

49.93

Cash dividends declared
Total Hitachi, Ltd. stockholders equity

3.0

‒

8.0

8.0

10.0

10.5

12.0

315.86287.13318.73382.26431.13549.02606.87%

Financial ratios:
Operating income ratio

1.3

2.3

4.8

4.3

4.7

5.6

6.2

EBIT ratio

‒2.8

0.9

4.8

5.9

4.0

6.1

5.6

Return on revenues

‒7.9

‒1.2

2.6

3.6

1.9

2.8

2.5

Return on equity (ROE)

‒48.9

‒9.2

17.5

21.6

9.1

11.2

8.6

Return on assets (ROA)

‒8.0

‒0.9

3.3

4.4

2.5

3.5

3.1

D/E ratio(Including non-controlling interests) (times)

1.29

1.04

1.03

0.86

0.75

0.73

0.78

Total Hitachi, Ltd. stockholders equity ratio

11.214.3

15.7

18.8

21.2

24.1

23.6

Notes: 1 In order to be consistent with financial reporting principles and practices generally accepted in Japan, operating income is presented as total revenues lesscost of sales and selling, general and administrative expenses. The Company believes that this is useful to investors in comparing the Company s financial
results with those of other Japanese companies. Under accounting principles generally accepted in the United States of America, restructuring charges, net
gain or loss on sales and disposal of rental assets and other property and impairment losses for long-lived assets are included as part of operating income.
2 The restructuring charges mainly represent special termination benefits incurred with the reorganization of our business structures and as the result of theCompany and its subsidiaries reviewing and reshaping the business portfolio.
3 EBIT is presented as income before income taxes less interest income plus interest charges.
4 Effective from fiscal 2014, a part of the thermal power generation systems business is classified as a discontinued operation in accordance with the provisionof ASC 205-20, Presentation of Financial Statements̶Discontinued Operations, which was not transferred to MITSUBISHI HITACHI POWER SYSTEMS,
LTD. for the business integration in the thermal power generation systems with Mitsubishi Heavy Industries, Ltd. The results of the discontinued operation arereported separately from continuing operations. In line with this classification, “Revenues” and Operating income for fiscal 2013 are reclassified.
5 ROA (Return on Assets) = Net income / Total Assets (Average between the end of current fiscal year and the end of previous fiscal year) x 10076

Results of Value Creation

Millions of yenIFRS
For the year:FY2013Revenues¥9,666,446

FY2014FY2015FY2016FY2017¥9,774,930 ¥10,034,305¥9,162,264¥9,368,614

Adjusted operating income

604,798

641,325

634,869

587,309714,630

EBIT

691,230

534,059

531,003475,182644,257

Net income attributable to
Hitachi, Ltd. stockholders

413,877

217,482

172,155

231,261

362,988

Net cash provided by operating activities

306,777

451,825

812,226

629,582

727,168

Net cash used in investing activities(550,179)(612,545)(730,799)(337,955)(474,328)

Free cash flows(243,402)(160,720)

81,427

291,627

252,840

Net cash provided by (used in) financing activities

228,840

233,206(26,467)(209,536)(321,454)

Cash dividends declared

50,711

57,94457,93962,76472,417

Capital expenditures(Property, plant and equipment)

491,170

431,201

528,551

377,545374,901

Depreciation(Property, plant and equipment)

331,228

350,783

366,547

302,757

265,413

R&D expenditures

354,487

334,814

333,730

323,963

332,920

At year-end:
Total assets

11,098,191

12,433,727

12,551,005

9,663,917

10,106,603Property, plant and equipment

2,258,933

2,472,497

2,500,226

1,998,411

2,124,827

Total Hitachi, Ltd. stockholders equity

2,668,657

2,942,281

2,735,078

2,967,085

3,278,024

Interest-bearing debt

3,033,985

3,557,356

3,604,455

1,176,603

1,050,294
Yen

Per share data:
Earnings per share attributable toHitachi, Ltd. stockholders:Basic¥85.69¥45.04¥35.65¥47.90¥75.19Diluted

85.66

45.00

35.62

47.88

75.12

Cash dividends declared
Total Hitachi, Ltd. stockholders equity

10.5

12.0

12.0

13.015.0

552.62609.35566.48614.56679.00%Financial ratios:
Adjusted operating income ratio

6.3

6.6

6.3

6.4

7.6

EBIT ratio

7.2

5.5

5.3

5.2

6.9

Return on revenues

4.3

2.2

1.7

2.5

3.9

Return on equity (ROE)

17.5

7.8

6.1

8.1

11.6

Return on assets (ROA)

5.0

2.9

2.4

3.0

5.0

D/E ratio(Including non-controlling interests) (times)

0.78

0.83

0.87

0.29

0.23

Total Hitachi, Ltd. stockholders equity ratio

24.0

23.7

21.8

30.7

32.4

Notes: 1 In order to be consistent with financial reporting principles and practices generally accepted in Japan, adjusted operating income is presented as total
revenues less cost of sales and selling, general and administrative expenses. The Company believes that this is useful to investors in comparing theCompany s financial results with those of other Japanese companies.
2 A part of the thermal power generation systems business is classified as a discontinued operation in accordance with the provision of IFRS 5,
Non-current Assets Held for Sale and Discontinued Operations, which was not transferred to MITSUBISHI HITACHI POWER SYSTEMS, LTD. forthe business integration in the thermal power generation systems with Mitsubishi Heavy Industries, Ltd. The results of the discontinued operation
are reported separately from continuing operations.
3 From fiscal 2013, capital investment is stated exclusive of investment in lease assets classified as finance leases.
4 ROA (Return on Assets) = Net income / Total Assets (Average between the end of current fiscal year and the end of previous fiscal year) x 100

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