Hitachi, Ltd. | Annual Report 2014

Consolidated Statements of Operations
by Manufacturing, Services & Others and Financial Services
Hitachi, Ltd. and Subsidiaries
March 31, 2014 and 2013
Billions of yen

As of March 31, 2014

As of March 31, 2013

Total*

Manufacturing,Services &Others

FinancialService

Total*¥338.5¥9,616.2¥8,839.6¥340.2¥9,041.0

500.7

33.1

532.8

393.9

29.2

422.0

549.5

34.6

580.1

332.1

29.4

358.0

Income before income taxes

537.8

33.2

568.1

317.9

28.7

344.5

Net income attributable to Hitachi, Ltd. stockholders253.5

14.3

264.9

164.9

12.7

175.3

Manufacturing,Services &Others

FinancialService¥9,416.4

Operating income
EBIT (earnings before interest and taxes)

Revenues* Total figures exclude inter-segment transactions.

Consolidated Statements of Cash Flowsby Manufacturing, Services & Others and Financial Services
Hitachi, Ltd. and Subsidiaries
March 31, 2014 and 2013
Billions of yen

As of March 31, 2014
Manufacturing,Services &Others

FinancialServices

Cash flows from operating activities¥ 498.6

Cash flows from investing activities(393.6)

Free cash flows
Cash flows from financing activitiesAs of March 31, 2013

Total*1

Manufacturing,Services &Others

FinancialServices

Total*1¥ (25.9)¥ 439.4¥ 503.4¥105.2¥ 583.5(124.1)(491.3)(478.4)(63.0)(553.4)104.9(150.0)(51.9)

25.0

42.1

30.0

(134.6)

163.7

32.9

(170.1)(44.4)(180.4)

Effect of exchange rate changes on cash andcash equivalents

48.0

1.3

49.5

56.7

1.8

58.4

Net increase (decrease) in cash and cash equivalents

18.3

15.1

30.5

(88.3)(0.3)(91.9)¥ 500.7¥141.7¥ 527.6¥ 589.0¥142.0¥ 619.5

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

519.0

156.7

558.2

500.7

141.7

527.6

Core free cash flows*2

22.4(202.5)(186.0)

19.4

46.9

45.7

*1 Total figures exclude inter-segment transactions.
*2 Operating cash flows plus collection of investments in leases less cash outflows for the purchase of property, plant and equipment, intangible assets, software, and the assets to be leased.

Note: Consolidated Financial Statements by Manufacturing, Services & Others and Financial Services represent unaudited financial information
prepared by the Company for the purpose of this supplementary information.

Role of the Financial Services Segment
Hitachi’s Manufacturing, Services & Others segments and its Financial Services segment are each clearly positioned and managed as distinct businesses with different characteristics. The Manufacturing, Services & Others segments work in coordination with the Financial Services segment toexpand the Social Innovation Business.
Increasing the financing receivables owned by Hitachi Capital Corporation, which constitutes the Financial Services segment, is the basis forgrowth in the financing business and regarded as investment to generate higher returns on equity. Credit rating agencies typically permit a higher
level of interest-bearing debt and D/E ratio for financial services companies than for manufacturing and services companies. The credit ratings ofHitachi, Ltd. are assigned by credit rating agencies on the basis of key financial indicators that exclude Hitachi’s financial services business.

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