Data Section

Segment Highlights
Revenues, Adjusted Operating Income and EBIT by Business Segment¥ billion
Revenues

Business Segment

Adjusted operating income

EBIT

FY2017FY2018FY2017FY2018FY2017FY2018

Information & Telecommunication Systems

2,008.9

2,065.9

189.2

225.2

139.2

210.9

Social Infrastructure & Industrial Systems

2,375.0

2,539.8

115.5

151.3

101.2

(151.9)

Electronic Systems & Equipment

1,086.5

951.2

86.9

75.6

88.8

70.8

959.1

1,033.7

92.5

115.7

97.0

104.5

High Functional Materials & Components

1,657.5

1,704.4

121.8

99.9

98.686.4

Automotive Systems

1,001.0

971.0

49.5

38.0

42.4

85.3

Smart Life & Ecofriendly Systems

540.1

485.0

25.1

22.4

33.3

29.5

Others

557.7

534.4

21.4

26.8

21.8

25.6

10,186.1

10,285.6

702.3

755.3

622.8

461.3

Corporate items & Eliminations(817.5)(805.0)

12.3

(0.3)

21.4

52.5

Total

9,368.6

9,480.6

714.6

754.9

644.2

513.9

Construction Machinery

Subtotal

Reclassification of Segment
BU: Business Unit

■ Previous Business Segment■ New Business Segment from FY2019

Financial Institutions BU
Information & Telecommunication
Systems

Financial Institutions BU

Social Infrastructure Systems BU
Services & Platforms BU

Social Infrastructure Systems BU
ITServices & Platforms BU

Nuclear Energy BU

Defense Systems BU

Power BU
Nuclear Energy BU
Industry & Distribution BU
Social Infrastructure & Industrial
Systems

EnergyEnergy BU*1

Water BU

Industry & Distribution BU

Industrial Products BU
Building Systems BU

Industry

Industrial Products Business*3

Railway Systems BU
Defense Systems BU
Healthcare BU

Building Systems BU
Mobility
Railway Systems BU

Electronic Systems & Equipment
Hitachi High-Technologies
Construction Machinery
High Functional Materials &Components

Hitachi Construction Machinery

Water & Environment BU*2

Healthcare BU
Smart Life

Smart Life & Ecofriendly Systems Business*4

Hitachi Metals
Automotive Systems Business*5
Hitachi Chemical
Hitachi Automotive Systems

Automotive Systems
Clarion

Hitachi High-Technologies
Hitachi Construction Machinery

Hitachi Appliances

Hitachi Metals

Hitachi Consumer Marketing

Hitachi Chemical

Smart Life & Ecofriendly Systems*1 As of April 1, 2019, Power BU changed its name to Energy BU.
*2 As of April 1, 2019, Water BU changed its name to Water & Environment BU.
*3 Industrial Products Business includes Hitachi Industrial Products, Ltd., which took over Industrial Products BU as of April 1 2019, and Hitachi Industrial Equipment Systems Co., Ltd.
*4 Smart Life & Ecofriendly Systems Business includes Hitachi Global Life Solutions, Inc., which was formed through a merger of Hitachi Appliances, Inc., and Hitachi Consumer Marketing, Inc.
*5 Automotive Systems Business includes Hitachi Automotive Systems, Ltd.

90

Hitachi Integrated Report 2019

Information & Telecommunication Systems
Share of Revenues

20

Overseas Revenue Ratio

29%

CAPEX by Business Segment¥34.2%

Depreciation by BusinessSegment¥45.6

Revenues and Profit (¥ billion)(Completion basis)

10.9%
9.4%

billionR&D Expenditure by Business
Segment¥46.9

billionbillion

7.7%
1,982.8

2,008.9

10.2%
2,065.9

6.9%

3.9%

16
Revenues

1718

Adjusted operating
income ratio(FY)
EBIT ratio

Main products and services
Systems Integration, Consulting, Cloud Services, Servers, Storage, Software, Telecommunications & Network, ATMs

Segment Performance
Revenues increased 3% to ¥2,065.9 billion, as compared with the year

improved profitability in system integration business and IT platform &ended March 31, 2018, due mainly to higher revenues from systemproducts business.

integration business, despite the effect of transfer of a subsidiary
operating communication network equipment business.

EBIT increased ¥71.6 billion to ¥210.9 billion, as compared with theyear ended March 31, 2018, due mainly to the increased adjusted

Adjusted operating income increased ¥36.0 billion to ¥225.2 billion,
as compared with the year ended March 31, 2018, due mainly tooperating income and posting of gains on sales of land formerly usedas production site for telecommunication network products.

Social Infrastructure & Industrial Systems
Share of Revenues

25

Overseas Revenue Ratio

46%

CAPEX by Business Segment(Completion basis)

Depreciation by Business
Segment¥30.0¥73.4%

2,331.9billionR&D Expenditure by Business
Segment

billion¥55.7

Revenues and Profit (¥ billion)

billion2,375.0
4.9%

3.3%

2,539.8
6.0%

4.3%

–0.9%
-6.0%
16Revenues

1718

Adjusted operating
income ratio(FY)
EBIT ratio

Main products and services
Industrial Machinery and Plants, Elevators, Escalators, Railway Systems, Thermal, Nuclear and Renewable Energy Power Generation Systems,Transmission & Distribution Systems

Segment Performance
Revenues increased 7% to ¥2,539.8 billion, as compared with the year

and an improvement in profitability of the industrial products business.

ended March 31, 2018, due mainly to revenue increase in railway

EBIT was worsened by ¥253.2 billion to the loss of ¥151.9 billion, assystems business for Europe and revenues recognized for overseas

compared with the profit of ¥101.2 billion for the year ended March 31,

EPC project for industry and distribution field.

2018, despite posting of gains on partial sales of shares of Agility Trains

Adjusted operating income increased ¥35.7 billion to ¥151.3 billion,

West (Holdings) Limited stock. The decrease was due mainly toas compared with the year ended March 31, 2018, due mainly toimpairment losses recognized as the result of the suspension of the UKrevenue increase in the railway systems business, and a higher revenue

nuclear power stations construction project.

91

Data Section

Electronic Systems & Equipment
Share of Revenues

Overseas Revenue Ratio

959%

CAPEX by Business Segment¥21.5%

Depreciation by BusinessSegment¥12.4

Revenues and Profit (¥ billion)(Completion basis)8.2%

billionR&D Expenditure by BusinessSegment¥46.1

billion

7.0%

7.9%

8.0%

5.7%
1,170.3

7.4%

1,086.5

951.2

billion
16Revenues

1718(FY)

Adjusted operating
income ratio

EBIT ratio

Main products and services
Semiconductor Processing Equipment, Test and Measurement Equipment, Advanced Industrial Products, Medical Electronics Equipment

Segment Performance
Revenues decreased 12% to ¥951.2 billion, as compared with the year

Adjusted operating income decreased ¥11.3 billion to ¥75.6 billion,

ended March 31, 2018, due mainly to the effect of reorganization ofas compared with the year ended March 31, 2018, due mainly to theHitachi Kokusai Electric Inc., despite increased revenues at Hitachi High-effect of reorganization of Hitachi Kokusai Electric Inc.

Technologies Corporation owing to higher sales of clinical analyzers and

EBIT decreased ¥18.0 billion to ¥70.8 billion, as compared with thesemi-conductor processing equipment and increased revenues inyear ended March 31, 2018, due mainly to decreased adjusted

healthcare business owing to higher sales of radiation therapy systems.

operating income.

Construction Machinery
Share of Revenues10

Overseas Revenue Ratio

80%

CAPEX by Business Segment¥30.3%

Depreciation by Business
Segment¥32.3

Revenues and Profit (¥ billion)(Completion basis)billionR&D Expenditure by Business
Segment

billion

¥24.7

753.9

959.1
10.1%
9.6%

1,033.7
11.2%
10.1%

3.5%
3.0%

billion16
Revenues

1718(FY)

Adjusted operating
income ratio

EBIT ratio

Main products and services
Hydraulic Excavators, Wheel Loaders, Mining Machinery

Segment Performance

92

Revenues increased 8% to ¥1,033.7 billion, as compared with the year

EBIT increased ¥7.4 billion to ¥104.5 billion, as compared with theended March 31, 2018, due mainly to increased sales in overseas

year ended March 31, 2018, due mainly to the increased adjusted

countries mainly in North America and Asia-Pacific.

operating income, despite of making a provision for concerns ofAdjusted operating income increased ¥23.2 billion to ¥115.7 billion,

collectability of VAT receivables which were overpaid by the subsidiaryas compared with the year ended March 31, 2018, due mainly to theof Hitachi Construction Machinery Co., Ltd. in China in the year endedincreased revenues.

March 31, 2018 and the increased structural reform expenses.

Hitachi Integrated Report 2019

High Functional Materials & Components
Share of Revenues

Overseas Revenue Ratio

17

CAPEX by Business Segment

Revenues and Profit (¥ billion)(Completion basis)59 ¥143.3%%

Depreciation by Business
Segment¥79.0

billion

8.4%

R&D Expenditure by Business
Segment¥51.1

billion1,464.6

8.2%

1,657.5

1,704.4

7.4%
5.9%
6.0%

5.1%

billion16
Revenues

1718

Adjusted operating
income ratio(FY)
EBIT ratio

Main products and services
Semiconductor and Display Related Materials, Circuit Boards and Materials, Automotive Parts , Energy Storage Devices, Specialty Steel Products,
Magnetic Materials and Applications, Functional Components and Equipment, Wires, Cables and Related Products

Segment Performance
Revenues increased 3% to ¥1,704.4 billion, as compared with the year

materials for semiconductors and electronics products at Hitachi

ended March 31, 2018, due mainly to the effect of corporate

Metals, Ltd. and effects of changes in product mix at Hitachi Chemicalacquisition by Hitachi Chemical Company, Ltd. and Hitachi Metals,Company, Ltd.

Ltd., and sales price rise linked to higher raw material costs at Hitachi
Metals, Ltd.

EBIT decreased ¥12.2 billion to ¥86.4 billion, as compared with theyear ended March 31, 2018, due mainly to posting gain on business

Adjusted operating income decreased ¥21.8 billion to ¥99.9 billion,

reorganization and others at Hitachi Metals, Ltd. and a decrease in

as compared with the year ended March 31, 2018, due mainly toexpenses related to competition law and others at Hitachi Chemical

decrease in demand for factory automation-related materials andCompany, Ltd.

Automotive Systems
Share of Revenues

Overseas Revenue Ratio

9%56

CAPEX by Business Segment

Revenues and Profit (¥ billion)(Completion basis)¥73.5%

992.2

1,001.0billion

971.0
8.8%

6.6%

Depreciation by BusinessSegment¥44.8

R&D Expenditure by Business
Segment

billion

¥64.1

5.7%

5.0%
4.2%

3.9%

1718billion
16
Revenues

Adjusted operating
income ratio(FY)
EBIT ratio

Main products and services
Engine Powertrain Systems, Electric Powertrain Systems, Integrated Vehicle Control Systems

Segment Performance
Revenues decreased 3% to ¥971.0 billion, as compared with the year

deteriorated operational productivity of the production bases in Northended March 31, 2018, due mainly to sales decrease in China and NorthAmerica.

America and lower revenues from car information systems business.
Adjusted operating income decreased ¥11.5 billion to ¥38.0 billion, due
mainly to the decrease in revenues, changes in product mix andEBIT increased ¥42.9 billion to ¥85.3 billion, as compared with theyear ended March 31, 2018, due mainly to posting gain on sales of theshares of Clarion Co., Ltd. and others.

93

Data Section

Smart Life & Ecofriendly Systems
Share of Revenues

Overseas Revenue Ratio

5%20

CAPEX by Business Segment¥12.1%

Depreciation by BusinessSegment¥9.2

Revenues and Profit (¥ billion)(Completion basis)

R&D Expenditure by Business
Segment

billion¥7.9557.3

540.1

5.7%

6.2%

6.1%

4.6%

4.6%

1718

billion4.0%

485.0billion
16Revenues

Adjusted operating
income ratio(FY)
EBIT ratio

Main products and services
Air-Conditioning Equipment, Room Air Conditioners, Refrigerators, Washing Machines

Segment Performance
Revenues decreased 10% to ¥485.0 billion, as compared with the year
ended March 31, 2018, due mainly to decreased revenues both inJapan and overseas market.
Adjusted operating income decreased ¥2.6 billion to ¥22.4 billion,

94

Hitachi Integrated Report 2019

due mainly to the decline in revenues.
EBIT decreased ¥3.7 billion to ¥29.5 billion, as compared with theyear ended March 31, 2018, due mainly to the decrease in adjusted
operating income.