SOCIAL INNOVATION
IT’S OUR FUTURE

Contents
1 SOCIAL INNOVATION – IT’S OUR FUTURE
2 Management Strategy
2 Hitachi‘s History of Transformation (Fiscal 2004 –Fiscal 2013)
4 2015 Mid-term Management Plan –Achieving Growth and Hitachi’s Transformation

30 Board of Directors

8 To Our Shareholders

31 Executive Officers

10 Special Feature: Hitachi Takes on Global Challenges –Targeting Global Growth
11 SECTION 1: Message from the CFO
12 SECTION 2: Message from the CMO
13 SECTION 3: Message from the CTO
14 SECTION 4: Message from the CTrO
15 SECTION 5: Message from the CIO
16 SECTION 6: Message from the Head of MONOZUKURI &Quality Assurance
17 SECTION 7: Message from the CPO
18 SECTION 8: Message from the CHRO
19 SECTION 9: Message from the General Counsel

32 Financial Section
32 Operating and Financial Review
38 Consolidated Balance Sheets
40 Consolidated Statements of Operations /Consolidated Statements of Comprehensive Income
41 Consolidated Statements of Equity
42 Consolidated Statements of Cash Flows
44 Consolidated Balance Sheetsby Manufacturing, Services & Others and Financial Services
45 Consolidated Statements of Operations
by Manufacturing, Services & Others and Financial Services /Consolidated Statements of Cash Flowsby Manufacturing, Services & Others and Financial Services

20 Financial Highlights
22 Segment Information

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24 Foundation for Growth
24 CSR Management
26 Corporate Governance
28 Risk Management

46 Corporate Data

Cautionary Statement
Certain statements found in this document 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
with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,”“plan,” “project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “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 document.
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 andequipment investment in Hitachi’s major markets, particularly Japan, Asia,
the United States and Europe, as well as levels of demand in the majorindustrial sectors Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors;• 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, particularly against the U.S. dollar and the euro;• 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;• uncertainty as to Hitachi’s ability to continue to develop and market
products that incorporate new technologies on a timely and costeffective basis and to achieve market acceptance for such products;• rapid technological innovation;• the possibility of cost fluctuations during the lifetime of, orcancellation of, long-term contracts for which Hitachi uses thepercentage-of-completion method to recognize revenue from sales;• 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 ofmaterials, parts and components;• fluctuations in product demand and industry capacity;• uncertainty as to Hitachi’s ability to implement measures to reduce
the potential negative impact of fluctuations in product demand,exchange rates and/or price of raw materials or shortages of materials,parts and components;• increased commoditization of and intensifying price competition
for products;• uncertainty as to Hitachi’s ability to achieve the anticipated benefitsof its strategy to strengthen its Social Innovation Business;• uncertainty as to the success of restructuring efforts to improve
management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness;• uncertainty as to the success of cost reduction measures;• 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 onimports and differences in commercial and business customs including,
without limitation, contract terms and conditions and labor relations;• uncertainty as to the success of alliances upon which Hitachi
depends, some of which Hitachi may not control, with other corporations in the design and development of certain key products;• uncertainty as to Hitachi’s access to, or ability to protect, certain
intellectual property rights, particularly those related to electronics
and data processing technologies;• uncertainty as to the outcome of litigation, regulatory investigations
and other legal proceedings of which the Company, its subsidiaries
or its equity-method affiliates have become or may become parties;• the possibility of incurring expenses resulting from any defects in
products or services of Hitachi;• the potential for significant losses on Hitachi’s investments inequity-method affiliates;• the possibility of disruption of Hitachi’s operations by earthquakes,
tsunamis or other natural disasters;• 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 the accuracy of key assumptions Hitachi uses toevaluate its significant employee benefit-related costs; and• uncertainty as to Hitachi’s ability to attract and retain skilled personnel.
The factors listed above are not all-inclusive and are in addition toother factors contained in other materials published by Hitachi.

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