Data Section
Smart life solutions
10-Year Financial Data

88

Consolidated Statement of Financial Position

98

Segment Highlights

90

Consolidated Statement of Profit or Loss99

patients worldwide by providing our particle beam

Reclassification of Segment

90

cancer treatment system.

Information & Telecommunication Systems 91

Consolidated Statement ofComprehensive Income

99

Social Infrastructure & Industrial Systems

91

Consolidated Statement of Changes in Equity

100

Electronic Systems & Equipment

92

Consolidated Statement of Cash Flows

101

Construction Machinery

92

5-Year Non-Financial Data

102

High Functional Materials & Components

93

Hitachi Group Business Operation Framework

103

Automotive Systems

93

Keywords to Understand Hitachi Value Creation 103

Smart Life & Ecofriendly Systems

94

Corporate Data / Stock Information

Operating and Financial Review

95

We contribute to treatment for 80,000 cancer

104Data Section

10-Year Financial Data
U.S. GAAP

Millions of yen

For the year:

FY2009FY2010FY2011FY2012FY2013

FY2014

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

202,159444,508

412,280

422,028

538,288

600,479

Operating income

77,815443,812573,218

358,015585,662551,018

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

238,869

347,179

175,326

264,975

241,301

Cash flows from operating activities

798,299

841,554447,155

583,508

439,406

447,348

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

Free cash flows

267,704

581,208

251,571

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

Cash flows from financing activities(502,344)(584,176)(167,838)(180,445)

32,968250,335

EBIT (Earnings before interest and taxes)—

36,13336,727

47,69050,711

57,944

Capital expenditures (Property, plant and equipment)

546,326

556,873649,234

742,537

849,877

848,716

Depreciation (Property, plant and equipment)

441,697382,732

360,358

300,664

329,833

349,614

R&D expenditures

372,470

395,180

412,514341,310351,426

335,515

8,964,464

9,185,629

9,418,526

9,809,230

11,016,899

12,395,379

Cash dividends declared

At year-end:
Total assets
Property, plant and equipment

2,219,804

2,111,270

2,025,538

2,279,964

2,342,091

2,564,105

Total Hitachi, Ltd. stockholders’ equity

1,284,658

1,439,865

1,771,782

2,082,560

2,651,241

2,930,309

Interest-bearing debt

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¥(29.20)¥52.89¥76.81¥37.28¥54.86¥49.97

Diluted(29.20)

49.38

71.86

36.29

54.85

49.93

—

8.0

8.0

10.0

10.5

12.0

287.13318.73382.26431.13549.02606.87

Cash dividends declared
Total Hitachi, Ltd. stockholders’ equity%
Financial ratios:
Operating income ratio

2.3

4.8

4.3

4.7

5.6

6.2

EBIT ratio

0.9

4.8

5.9

4.0

6.1

5.6

Return on revenues

‒1.2

2.6

3.6

1.9

2.8

2.5

Return on equity (ROE)

‒9.2

17.5

21.6

9.1

11.2

8.6

Return on assets (ROA)

‒0.9

3.3

4.4

2.5

3.5

3.1

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

1.04

1.03

0.86

0.75

0.73

0.78

Total Hitachi, Ltd. stockholders’ equity ratio

14.3

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 less cost of sales and selling, general andadministrative 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 areincluded 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 the Company and its subsidiaries reviewing andreshaping 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 provision of ASC 205-20, “Presentation of Financial
Statements—Discontinued 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 are reported separately from continuing operations. In line with this classification, “Revenues” and “Operating income” forfiscal 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 100

88

Hitachi Integrated Report 2019

IFRS

Millions of yen

For the year:

FY2013

FY2014FY2015FY2016FY2017FY2018

Revenues¥9,666,446

9,774,930¥10,034,305¥9,162,264¥9,368,614¥9,480,619

Adjusted operating income

604,798

641,325

634,869

587,309714,630

754,976EBIT

691,230

534,059

531,003475,182644,257

513,906

Net income attributable to Hitachi, Ltd. stockholders

413,877

217,482

172,155

231,261

362,988

222,546

Net cash provided by operating activities

306,777

451,825

812,226

629,582

727,168

610,025

Net cash used in investing activities(550,179)(612,545)(730,799)(337,955)(474,328)(162,872)

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

81,427

291,627

252,840

447,153

Net cash provided by (used in) financing activities

228,840

233,206(26,467)(209,536)(321,454)(320,426)

Cash dividends declared

50,711

57,94457,93962,76472,41786,905

Capital expenditures (Property, plant and equipment)

491,170

431,201

528,551

377,545374,901

414,798

Depreciation (Property, plant and equipment)

331,228

350,783

366,547

302,757

265,413271,682

R&D expenditures

354,487

334,814

333,730

323,963

332,920

323,145

Total assets

11,098,191

12,433,727

12,551,005

9,663,917

10,106,603

9,626,592

Property, plant and equipment

2,258,933

2,472,497

2,500,226

1,998,411

2,124,827

1,956,685

Total Hitachi, Ltd. stockholders’ equity

2,668,657

2,942,281

2,735,078

2,967,085

3,278,024

3,262,603

Interest-bearing debt

3,033,985

3,557,356

3,604,455

1,176,603

1,050,294

1,004,771

At year-end:

Yen
Per share data:
Earnings per share attributable to Hitachi, Ltd. stockholders:
Basic
DilutedCash dividends declared
Total Hitachi, Ltd. stockholders’ equity¥85.6985.66
10.5
552.62¥45.0445.00
12.0
609.35¥35.6535.62
12.0
566.48¥47.9047.88
13.0614.56¥75.19¥375.93¥230.4775.12
375.60230.25

15.0
75.0

90.0

679.003,395.00

3,378.81%

Financial ratios:
Adjusted operating income ratio

6.3

6.6

6.3

6.4

7.6

8.0

EBIT ratio

7.2

5.5

5.3

5.2

6.9

5.4

Return on revenues

4.3

2.2

1.7

2.5

3.9

2.3

Return on equity (ROE)

17.5

7.8

6.1

8.1

11.6

6.8

Return on assets (ROA)

5.0

2.9

2.4

3.0

5.0

3.3

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

0.78

0.83

0.87

0.29

0.23

0.23

Total Hitachi, Ltd. stockholders’ equity ratio

24.0

23.7

21.8

30.7

32.4

33.9

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 the Company’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 andDiscontinued 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 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 On October 1, 2018, the Company completed the share consolidation of every five shares into one share for its common stock. The figures for basic and diluted earnings per share attributable
to Hitachi, Ltd. stockholders are calculated on the assumption that the Company conducted this consolidation at the beginning of the previous fiscal year.
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 100

89

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

98.6

86.4

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
IT
Services & 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 Business
Segment¥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

17

18

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%
16
Revenues

17

18

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, as

systems 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 to

as compared with the year ended March 31, 2018, due mainly to

impairment 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

9

59

%

CAPEX by Business Segment

¥21.5

%

Depreciation by Business
Segment¥12.4

Revenues and Profit (¥ billion)(Completion basis)

8.2%

billionR&D Expenditure by Business
Segment¥46.1

billion

7.0%

7.9%

8.0%

5.7%
1,170.3

7.4%

1,086.5

951.2

billion16
Revenues

17

18

(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 the

Hitachi 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 Revenues

10

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

17

18

(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 of

Adjusted 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 ended

increased 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

17

18

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 to

expenses 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

1,001.0

billion

971.0
8.8%

6.6%

Depreciation by Business
Segment¥44.8

R&D Expenditure by Business
Segment

billion

¥64.1

5.7%

5.0%
4.2%

3.9%

17

18

billion16
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 North

ended March 31, 2018, due mainly to sales decrease in China and North

America.

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 and

EBIT 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 Business
Segment¥9.2

Revenues and Profit (¥ billion)(Completion basis)

R&D Expenditure by Business
Segment

billion

¥7.9

557.3

540.1

5.7%

6.2%

6.1%

4.6%

4.6%

17

18

billion

4.0%

485.0

billion16
Revenues

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.

Operating and Financial Review
1

Operating Results

the year ended March 31, 2018. Impairment losses increased ¥296.3
billion to ¥344.9 billion, as compared with the year ended March 31,
2018. This mainly reflected impairment losses recognized as the result

Summaryof the suspension of the UK nuclear power stations construction¥billion
2018

2019

Percentchange¥9,368.6¥9,480.6

1%

Adjusted operating income

714.6

754.9

6%

EBIT

644.2

513.9

-20%

Income from continuing operations,
before income taxes

638.6

516.5

-19%

Net income attributable to
Hitachi, Ltd. stockholders

362.9

222.5

-39%

Years ended March 31:

Revenues

project in power and energy business. Net gain on businessreorganization and others increased ¥174.8 billion to ¥184.6 billion, as
compared with the year ended March 31, 2018, due mainly to net gain
by selling shares of Hitachi Kokusai Electric Inc. stock, shares ofClarion Co., Ltd. stock in the Automotive Systems segment and a partof shares of Agility Trains West (Holdings) Limited stock in the Social
Infrastructure & Industrial Systems segment. Special termination
benefits increased ¥6.6 billion to ¥22.3 billion, as compared with theyear ended March 31, 2018. Expenses related to competition law andothers decreased ¥12.5 billion to ¥1.7 billion, as compared with theAnalysis of Statement of Operations

year ended March 31, 2018.
Financial income (excluding interest income) increased by 6.6 billion

Revenues increased 1% to ¥9,480.6 billion, as compared with the yearto ¥13.6 billion and financial expenses (excluding interest charges)

ended March 31, 2018, despite the effect of conversion of Hitachi

decreased ¥7.7 billion to ¥3.4 billion, as compared with the year ended

Kokusai Electric Inc. into an equity-method associate. This increase

March 31, 2018, respectively.

was due mainly to an increase in revenues in the Social Infrastructure &Share of loss of investments accounted for using the equity method

Industrial Systems segment owing to an increased revenues from thewas ¥15.0 billion, a deterioration of ¥77.4 billion from the year ended

railway systems business for Europe, in the Construction Machinery

March 31, 2018, due to an exchange loss at a foreign equity-method

segment where sales rose mainly in North America and Asia-Pacific, inassociate and impairment losses for investment on equity-method

the Information & Telecommunications Systems segment where theassociates.

system integration business remained firm and in the High Functional
Materials & Components segment owing to corporate acquisitions by
Hitachi Chemical Company, Ltd. and Hitachi Metals, Ltd.

As a result of the foregoing, EBIT decreased ¥130.3 billion to ¥513.9
billion, as compared with the year ended March 31, 2018.
Interest income increased ¥8.1 billion to ¥23.1 billion, as compared

Cost of sales increased 1% to ¥6,964.6 billion, as compared with thewith the year ended March 31, 2018 and interest charges was ¥20.5

year ended March 31, 2018, and the ratio of cost of sales to revenues

billion, which was the same level as for the year ended March 31,

was 73%, which was the same level as for the year ended March 31,

2018.

2018. Gross profit increased 1% to ¥2,515.9 billion, as compared withthe year ended March 31, 2018.
Selling, general and administrative expenses decreased 1% toIncome from continuing operations, before income taxes decreased¥122.1 billion to ¥516.5 billion, as compared with the year ended
March 31, 2018.

¥1,761.0 billion, as compared with the year ended March 31, 2018,

Income taxes increased ¥54.6 billion to ¥186.3 billion, as comparedand the ratio of selling, general and administrative expenses towith the year ended March 31, 2018, despite of decreased income

revenues was 19%, which was the same level as for the year ended

from continuing operations, before income taxes owing mainly to

March 31, 2018.

impairment losses recognized as the result of the suspension of the UK

Adjusted operating income increased by ¥40.3 billion to ¥754.9

nuclear power stations construction project. This increase was due

billion, as compared with the year ended March 31, 2018. The

mainly to increased taxable income due to such impairment losses

increase was due mainly to higher profits owing to increased revenues

being non-deductible.

and profitability improvement in the Information & Telecommunication
Systems segment, the Social Infrastructure & Industrial Systems
segment and the Construction Machinery segment. The increase waspartially offset by decreased profits in the High Functional Materials &Components segment and the Automotive Systems segment.
Other income increased ¥194.3 billion to ¥206.3 billion and otherexpenses increased ¥301.9 billion to ¥442.6 billion, as compared with

Loss from discontinued operations decreased ¥6.8 billion to ¥9.1
billion, as compared with the year ended March 31, 2018.
Net income decreased ¥169.8 billion to ¥321.0 billion, as comparedwith the year ended March 31, 2018.
Net income attributable to non-controlling interests decreased ¥29.4
billion to ¥98.4 billion, as compared with the year ended March 31,
2018.

the year ended March 31, 2018, respectively. The details are as

As a result of the foregoing, net income attributable to Hitachi, Ltd.

follows. Net gain on sales and disposal of fixed assets was improved

stockholders decreased ¥140.4 billion to ¥222.5 billion, as comparedby ¥20.9 billion and turned to gain of ¥18.4 billion, as compared with

with the year ended March 31, 2018.

95

Data Section

Revenues by Geographic Area

(Other Areas)

The following is an overview of revenues attributed to geographic areas

Revenues in other areas increased 14% to ¥572.3 billion, as comparedbased on customer location.

with the year ended March 31, 2018. This was due mainly to higher
revenues in the Social Infrastructure & Industrial Systems segment¥billionowing to revenues recognized for overseas EPC project for industry

2018

2019

PercentchangeJapan¥4,643.0¥4,664.50%Overseas Revenues Subtotal

4,725.5

4,816.02%

As a result of the foregoing, overseas revenues increased 2% toAsia

2,081.1

2,019.5-3%¥4,816.0 billion, as compared with the year ended March 31, 2018,

North America

1,177.5

1,205.62%

Europe964.4

1,018.5

6%

Other Areas

502.3

572.3

14%

¥9,368.6¥9,480.6

1%Years ended March 31:

Total Revenues

and distribution field.

and the ratio to total revenues was 51%, which was 1% increase ascompared with the year ended March 31, 2018.

2

Summary of Financial Condition, etc.

Japan
Revenues in Japan was ¥4,664.5 billion, which was the same level as

Liquidity and Capital Resources

the year ended March 31, 2018. This was due mainly to increased

Our management considers maintaining an appropriate level ofrevenues in the Information & Systems segment, the High Functionalliquidity and securing adequate funds for current and future

Materials & Components segment and the Construction Machinery

business operations to be important financial objectives. Throughsegment, which offset decreased revenues in the Electronic Systems &efficient management of working capital and selective investment inEquipment owing to the effect of business reorganization of Hitachi

new plants and equipment, we are working to optimize the

Kokusai Electric Inc.

efficiency of capital utilization throughout our business operations.
We endeavor to improve our group cash management by

Overseas

centralizing such management among us and our overseas financial(Asia)

subsidiaries. Our internal sources of funds include cash flows

Revenues in Asia decreased 3% to ¥2,019.5 billion, as compared withgenerated by operating activities and cash on hand. Our

the year ended March 31, 2018. This was due mainly to reduced

management also considers short-term investments to be anrevenues in the Electronic Systems & Equipment segment owing to theimmediately available source of funds. In addition, we raise funds

effect of business reorganization of Hitachi Kokusai Electric Inc. and inboth in the capital markets and from Japanese and international

the Automotive Systems segment, despite higher revenues in thecommercial banks in response to our capital requirements. Our

Social Infrastructure & Industrial Systems segment owing to sales

management’s policy is to finance capital expenditures primarily by

growth in the building systems business in China and in theinternally generated funds and to a lesser extent by funds raised

Construction Machinery segment.

through the issuance of debt and equity securities in domestic andforeign capital markets. In order to flexibly access funding, we(North America)

maintain our shelf registration with the maximum outstanding

Revenues in North America increased 2% to ¥1,205.6 billion, asbalance of ¥300.0 billion.

compared with the year ended March 31, 2018. This was due mainly

We maintain commitment line agreements with a number ofto the higher revenues in the Construction Machinery segment, thedomestic banks under which we may borrow in order to ensure

Social Infrastructure & Industrial Systems segment and the Highefficient access to necessary funds. These commitment line

Functional Materials & Components segment, despite reduced

agreements generally provide for a one-year term, renewable upon

revenues in the Information & Systems segment and the Automotive

mutual agreement between us and each of the lending banks, as well

Systems segment, etc.

as another commitment line agreement with a contract term of three
years ending on July 29, 2019. As of March 31, 2019, our unused

96(Europe)commitment lines totaled ¥465.0 billion, most of which is the balance

Revenues in Europe increased 6% to ¥1,018.5 billion, as compared withof unused loans.

the year ended March 31, 2018. This was due mainly to higher revenues

We receive debt ratings from Moody’s Japan K.K. (Moody’s), S&P

in the Social Infrastructure & Industrial Systems segment, reflecting sales

Global Rating Japan Inc. (S&P), as well as Rating and Investment

growth in the railway systems business, the Construction Machinery

Information, Inc. (R&I). Our debt ratings as of March 31, 2019 were as

segment and the Information & Systems segment.

follows.

Hitachi Integrated Report 2019

Long-term

Short-term

year ended March 31, 2019 were ¥3.7 billion, as compared with

S&P

A

A-1

¥104.8 billion of payments related to short-term debt in the year

Moody’sA3

P–2

ended March 31, 2018. Net cash outflow related to long-term debt*

R&I

A+*

a–1*

Rating Company*R&I changed its rating from A+ to AA- and a-1 to a-1+ in August 2019.

in the year ended March 31, 2019 decreased by ¥67.6 billion, as
compared with the year ended March 31, 2018.
As a result of the foregoing, net cash used in financing activities wasWith our current ratings, we believe that our access to the global¥320.4 billion in the year ended March 31, 2019, a decrease of ¥1.0

capital markets will remain sufficient for our financing needs. We seek

billion compared with the year ended March 31, 2019.

to improve our credit ratings in order to ensure financial flexibility for* The proceeds from long-term debt, less the payments on long-term debt.

liquidity and capital management, and to continue to maintain accessto sufficient funding resources through the capital markets.

As a result of the foregoing, as of March 31, 2019, cash and cash
equivalents were ¥807.5 billion, an increase of ¥109.6 billion from

Cash Flows(Cash Flows from Operating Activities)
Net cash outflow from a change in trade payables increased by ¥114.0
billion, as compared with the year ended March 31, 2018. Net cash

March 31, 2018. Free cash flows, the sum of cash flows fromoperating and investing activities, were an inflow of ¥447.1 billion in theyear ended March 31, 2019, an increase of ¥194.3 billion from the year
ended March 31, 2018.

inflow from a change in trade receivables and contract assets*
decreased by ¥45.4 billion, as compared with the year ended March
31, 2018. Net cash outflow from a change in inventories decreased by¥31.7 billion, as compared with the year ended March 31, 2018.
As a result of the foregoing, net cash provided by operating activitieswas ¥610.0 billion in the year ended March 31, 2019, a decrease of¥117.1 billion compared with the year ended March 31, 2018.
* Due to the implementation of IFRS 15, "change in trade receivables" is presented as "change in tradereceivables and contract assets" from the year ended March 31, 2019.

(Cash Flows from Investing Activities)
Net amount of investments related to property, plant and equipment*was ¥410.6 billion in the year ended March 31, 2019. This net sum
increased by ¥4.1 billion compared with the year ended March 31,
2018. Proceeds from sale of investments in securities and otherfinancial assets (including investments in subsidiaries and investments
accounted for using the equity method) in the year ended March 31,
2019 increased by ¥128.7 billion, as compared with the year ended
March 31, 2018, due mainly to the sale of shares of Clarion Co., Ltd.
Purchase of investments in securities and other financial assets(including investments in subsidiaries and investments accounted forusing the equity method) in the year ended March 31, 2019 decreasedby ¥170.7 billion, as compared with the year ended March 31, 2018,
in which expenses related to acquiring Sullair business were paid.
As a result of the foregoing, net cash used in investing activities was¥162.8 billion in the year ended March 31, 2019, a decrease of ¥311.4
billion compared with the year ended March 31, 2018.

Assets, Liabilities and Equity
As of March 31, 2019, total assets amounted to ¥9,626.5 billion, adecrease of ¥480.0 billion from March 31, 2018. This was due mainly
to impairment losses recognized for the suspension of the UK nuclear
power stations construction project, the conversion of Hitachi Kokusai
Electric Inc. to an equity-method associate, and sales of shares ofClarion Co., Ltd. stock. Cash and cash equivalents as of March 31,
2019 amounted to ¥807.5 billion, an increase of ¥109.6 billion from theamount as of March 31, 2018.
As of March 31, 2019, total interest-bearing debt, the sum of shortterm debt and long-term debt, amounted to ¥1,004.7 billion, adecrease of ¥45.5 billion from March 31, 2018 as a result of repaymentof borrowings. As of March 31, 2019, short-term debt, consisting
mainly of borrowings from banks and commercial paper, amounted to¥111.0 billion, a decrease of ¥10.4 billion from March 31, 2018. As of
March 31, 2019, current portion of long-term debt amounted to¥185.2 billion, an increase of ¥68.0 billion from March 31, 2018. As of
March 31, 2019, long-term debt (excluding current portion), consisting
mainly of debentures, and loans principally from banks and insurancecompanies, amounted to ¥708.4 billion, a decrease of ¥103.1 billion
from March 31, 2018.
As of March 31, 2019, total Hitachi, Ltd. stockholders’ equity
amounted to ¥3,262.6 billion, a decrease of ¥15.4 billion from March
31, 2018. As a result, the ratio of total Hitachi, Ltd. stockholders’equity
to total assets as of March 31, 2019 was 33.9%, compared with* The sum of the purchase of property, plant and equipment and the purchase of intangible assets, less theproceeds from sale of property, plant and equipment, and intangible assets.

32.4% as of March 31, 2018.

(Cash Flows from Financing Activities)

a decrease of ¥81.8 billion from March 31, 2018.

Non-controlling interests as of March 31, 2019 was ¥1,151.8 billion,
Net cash outflow related to purchase of shares of consolidated

Total equity as of March 31, 2019 was ¥4,414.4 billion, a decrease of

subsidiaries from non-controlling interests increased by ¥155.7¥97.2 billion from March 31, 2018. The ratio of interest-bearing debt tobillion, due mainly to the additional acquisition of shares of

total equity was 0.23 times, which was the same level as that as ofAnsaldo STS S.p.A. Proceeds related to short-term debt in the

March 31, 2018.

97

Data Section

Consolidated Statement of Financial Position
March 31, 2019 and 2018

Millions of yen

Assets2018

2019

Cash and cash equivalents¥ 697,964¥ 807,593

Trade receivables

2,501,414—

Current assets

Trade receivables and contract assets
Inventories
Investments in securities and other financial assets—

2,399,933

1,375,232

1,356,762

373,324

284,267

203,866

187,238

5,151,800

5,035,793

Investments accounted for using the equity method

743,407724,461

Investments in securities and other financial assets

716,431568,349

Property, plant and equipment

2,124,827

1,956,685

Intangible assets

1,054,370

960,016

Other current assets
Total current assets
Non-current assets

Other non-current assets
Total non-current assets
Total Assets

315,768

381,288

4,954,803

4,590,799¥10,106,603¥9,626,592¥ 121,439¥ 111,031

117,191

185,250

Liabilities
Current liabilities
Short-term debt
Current portion of long-term debt

254,735

257,792

1,536,983

1,406,012

Accrued expenses

697,185

653,676

Advances received

551,182—

Contract liabilities—

553,510516,679

438,289

3,795,394

3,605,560

Long-term debt

811,664

708,490

Retirement and severance benefits

575,156

526,688

Other non-current liabilities

412,718

371,451

Other financial liabilities
Trade payables

Other current liabilities
Total current liabilities

Non-current liabilities

1,799,538

1,606,629

5,594,932

5,212,189

Common stock

458,790458,790

Capital surplus

575,809463,786

2,105,395

2,287,587

142,167

56,360(4,137)(3,920)Total non-current liabilities
Total Liabilities

EquityHitachi, Ltd. stockholders' equity

Retained earnings
Accumulated other comprehensive income
Treasury stock, at cost
Total Hitachi, Ltd. stockholders' equity
Non-controlling interests
Total Equity
Total Liabilities and Equity

3,278,024

3,262,603

1,233,647

1,151,800

4,511,671

4,414,403¥10,106,603¥9,626,592

Notes: 1 From the fiscal year ended March 31, 2019, the consolidated statement accounts were presented in detail.
2 In adoption of IFRS 15, "Trade receivables" which were included in "Current assets" have been changed to "Trade receivables and contract assets" and "Advances received" which were included in"Current liabilities" have been changed to "Contract liabilities".

98

Hitachi Integrated Report 2019

Consolidated Statement of Profit or Loss
Years ended March 31, 2019 and 2018

Millions of yen
2018

2019

Revenues¥ 9,368,614¥ 9,480,619

Cost of sales(6,866,522)(6,964,635)

Gross profit

2,502,092

2,515,984(1,787,462)(1,761,008)

Selling, general and administrative expenses

714,630

754,976

Other income

12,068206,371

Other expenses(140,686)(442,659)

Financial income

7,005

13,693Financial expenses(11,243)(3,459)

Share of profits (losses) of investments accounted for using the equity method

62,483(15,016)644,257

513,906

Adjusted operating income

EBIT (Earnings before interest and taxes)
Interest income

14,92823,122

Interest charges(20,539)(20,526)

Income from continuing operations, before income taxes
Income taxes
Income from continuing operations
Loss from discontinued operations
Net income

638,646

516,502(131,708)(186,344)

506,938

330,158(16,020)¥

490,918(9,136)¥

321,022

Net income attributable to:
Hitachi, Ltd. stockholders

362,988

222,546

Non-controlling interests

127,930

98,476
Yen

Earnings per share from continuing operations, attributable to Hitachi, Ltd. stockholders
Basic¥392.52¥239.93

Diluted392.17239.70Basic

375.93230.47

Diluted375.60230.25

Earnings per share attributable to Hitachi, Ltd. stockholders

Notes: On October 1, 2018, the Company completed the share consolidation of every five shares into one share for its common stock. The figures for basic and diluted earnings per share attributable to Hitachi,Ltd. stockholders are calculated on the assumption that the Company conducted this consolidation at the beginning of the previous fiscal year.

Consolidated Statement of Comprehensive Income
Years ended March 31, 2019 and 2018

Millions of yen

Net income

2018

2019

¥490,918¥321,022

Other comprehensive income (OCI)
Items not to be reclassified into net income
Net changes in financial assets measured at fair value through OCI

1,530(45,356)

Remeasurements of defined benefit plans

22,753(11,881)

Share of OCI of investments accounted for using the equity method
Total items not to be reclassified into net income

3,302(1,964)

27,585(59,201)

Items that can be reclassified into net income
Foreign currency translation adjustments(8,042)(4,175)

Net changes in cash flow hedges

5,703(6,274)(45)

12,009

Share of OCI of investments accounted for using the equity method(2,384)

1,560

25,201(57,641)¥516,119¥263,381

Hitachi, Ltd. stockholders

382,341

171,140

Non-controlling interests

133,778

92,241

Total items that can be reclassified into net income
Other comprehensive income (OCI)
Comprehensive income
Comprehensive income attributable to:99

Data Section

Consolidated Statement of Changes in Equity
Years ended March 31, 2019 and 2018

Millions of yen
2018

Commonstock

CapitalsurplusRetainedearnings

Accumulated
othercomprehensive
income¥458,790¥577,573¥1,793,570¥141,068

Reclassified into
retained earnings——

16,428Net income——

Other comprehensive income—

Dividends to Hitachi, Ltd.
stockholders

Treasurystock,
at costTotal Hitachi, Ltd.
stockholders’equityNoncontrollinginterests

Total equity¥(3,916)¥2,967,085¥1,129,910¥4,096,995(16,428)

—

—

—

—

362,988——362,988

127,930

490,918——

19,353—

19,353

5,848

25,201——(67,591)——(67,591)—(67,591)

Dividends to non-controllinginterests

—

—

—

—

—

—

(34,395)(34,395)

Acquisition of treasury stock

—

—

—

—

(292)

(292)

—

(292)

Sales of treasury stock

—

(27)

—

—

71

44

—

44

Changes in non-controllinginterests—(1,737)—(1,826)—(3,563)

4,354

791

Total changes in equity—(1,764)

311,825

1,099

(221)

310,939

103,737

414,676

As of March 31, 2018

¥458,790¥575,809¥2,105,395¥142,167¥(4,137)¥3,278,024¥1,233,647¥4,511,671

As of March 31, 2017
Changes in equity

Millions of yen
2019

Commonstock

CapitalsurplusRetainedearnings

Accumulated
othercomprehensive
income¥458,790¥575,809¥2,105,395¥142,167

—

—

3,209

458,790575,809

Reclassified into
retained earnings—

Net income

Treasurystock,
at costTotal Hitachi, Ltd.
stockholders’equityNoncontrollinginterests

Total equity¥(4,137)¥3,278,024¥1,233,647¥4,511,671

—

—

3,209

(1,406)

1,803

2,108,604

142,167(4,137)

3,281,233

1,232,241

4,513,474—

33,683(33,683)

—

—

—

—

—

—

222,546——

222,546

98,476

321,022

Other comprehensive loss

—

—

—

(51,406)—(51,406)(6,235)(57,641)

Dividends to Hitachi, Ltd.
stockholders——(77,246)——(77,246)—(77,246)

Dividends to non-controllinginterests

—

—

—

—

—

—

(42,968)(42,968)

Acquisition of treasury stock

—

—

—

—

(231)

(231)

—

(231)

Sales of treasury stock

—

(237)

—

—

448

211

—

211

Changes in non-controllinginterests—(111,786)

—

(718)

—

(112,504)(129,714)(242,218)

Total changes in equity—(112,023)

178,983(85,807)217(18,630)(80,441)(99,071)

As of March 31, 2019

¥458,790¥463,786¥2,287,587¥56,360¥(3,920)¥3,262,603¥1,151,800¥4,414,403

As of March 31, 2018
Cumulative effects ofchanges in accounting policies
Restated balance
Changes in equity

Notes: From the fiscal year ended March 31, 2019, the consolidated statement items were presented in detail.

100

Hitachi Integrated Report 2019

Consolidated Statement of Cash Flows
Years ended March 31, 2019 and 2018

Millions of yen
2018

2019

¥ 490,918¥ 321,022

Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization

364,432

368,044

Impairment losses

48,656344,997

Income taxes

131,659

183,699

Share of (profits) losses of investments accounted for using the equity method(62,483)

15,016(862)(6,387)

Net (gain) loss on business reorganization and others(9,774)(184,630)(Gain) loss on sale of property, plant and equipment

2,395(18,966)

Change in trade receivables

47,216

—

—

1,793

Change in inventories(181,207)(149,500)

Change in other assets(17,321)(13,419)

Change in trade payables

97,923(16,107)

Change in retirement and severance benefits(40,137)(38,461)

Change in other liabilities

44,320(35,257)

Other(7,743)

3,925

907,992

775,769

9,767

22,343Financial income and expenses

Change in trade receivables and contract assets

SubtotalInterest received
Dividends received

17,902

22,710Interest paid

(21,582)(22,530)

Income taxes paid

(186,911)(188,267)

727,168

610,025

Purchase of property, plant and equipment(352,047)(382,351)

Purchase of intangible assets(91,528)(89,898)

Proceeds from sale of property, plant and equipment, and intangible assets

37,076

61,623Purchase of investments in securities and other financial assets (including investments in subsidiaries andinvestments accounted for using the equity method)(243,124)(72,422)

Proceeds from sale of investments in securities and other financial assets (including investments in subsidiaries
and investments accounted for using the equity method)

178,188306,971(2,893)

13,205(474,328)(162,872)

252,840

447,153

Net cash provided by (used in) operating activities
Cash flows from investing activities

Other
Net cash provided by (used in) investing activities
Free cash flows
Cash flows from financing activities
Change in short-term debt, net(104,819)

3,706

Proceeds from long-term debt

143,354

87,636

Payments on long-term debt

(256,944)(133,581)

3,953

5,149

Dividends paid to Hitachi, Ltd. stockholders(67,568)(77,194)

Dividends paid to non-controlling interests(32,066)(43,375)

Acquisition of common stock for treasury

(292)

(231)

Proceeds from payments from non-controlling interests

Proceeds from sales of treasury stock
Purchase of shares of consolidated subsidiaries from non-controlling interests

49

211

(6,982)(162,692)

Proceeds from partial sales of shares of consolidated subsidiaries to non-controlling interests

205

—

Other

(344)

(55)

Net cash provided by (used in) financing activities(321,454)(320,426)

Effect of exchange rate changes on cash and cash equivalents

1,336(17,098)(67,278)

109,629

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

765,242

697,964¥ 697,964¥ 807,593

Notes: 1 From the fiscal year ended March 31, 2019, the consolidated statement items were presented in detail.
2 Changes in presentation have been made due to materiality of some cash-flow items as a result of business reorganization and others. “Purchase of leased assets”, which was separately presented, hasbeen included in “Purchase of property, plant and equipment” or “Purchase of intangible assets”. “Proceeds from sale of leased assets”, which were separately presented, have been included in“Proceeds from sale of property, plant and equipment, and intangible assets”.
The consolidated statement of cash flows for the year ended March 31, 2018 has been reclassified in order to reflect these changes in presentation.

101

Data Section

5-Year Non-Financial Data
Human Capital Development
Number of employees

FY2014FY2015FY2016FY2017FY2018

Consolidated

336,670

335,244

303,887

307,275

295,941

Non-consolidated

31,37518.4
1.4

37,35318.4
1.3

35,63118.6
1.5

34,92518.8
1.5

33,490
19.0
1.6

16.3
6.0
(3,670)
3.7
(434)

16.5
6.4
(3,727)
4.0
(474)

16.8
6.3
(3,365)
4.1
(509)

17.2
6.4
(3,459)
4.2
(577)

17.8
6.8
(3,638)
4.8
(635)

—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—

27.65
2.33
10.70
2.07
1.59
5.43
39.07
17.26
7.76
1.57
3.95

24.33
1.62
10.82
1.44
1.53
4.41
24.41
9.93
7.42
1.85
4.22

27.96
0.44
6.08
1.44
1.46
3.34
21.94
11.76
7.43
1.64
4.20

3

4

3

5

0

Average service (years)*1
Turnover ratio (%)*1*2
Diversity and Inclusion

Ratio of female employees (%)*1
Global ratio (number) of female managers*3
Ratio (number) of female managers*1*4

Hitachi Group’s Global Safety Figures (Occurrence rate*5)

Americas
Latin America
EuropeIndia
China
Asia (excluding India and China)
Oceania
AfricaSubtotalJapan
Global total
Occupational Health and Safety

Number of fatal accidents*6

Scope of Data
*1 Hitachi, Ltd. *2 Includes only voluntary resignations. *3 All full-time, regular female managers excluding those dispatched to non-Group companies.
*4 Since fiscal 2017, “Female managers” has included managerial employees dispatched from Hitachi, Ltd. to other companies and those accepted from other companies by Hitachi, Ltd. Earlier figures include regular managerial
employees dispatched to other companies but exclude those accepted from other companies.
*5 Occurrence rate is the rate of workplace accidents per 1,000 directly contracted employees resulting in fatality or work-time loss of one day or more. *6 January to December each year.

June 2017

June 2018

June 2019

Number of female executive and corporate officers
Ratio of female executive and corporate officers
Number of non-Japanese executive and corporate officers

2
2.4%
3

2
2.6%
5

4
5.0%
7

Ratio of non-Japanese executive and corporate officers

3.7%

6.4%

8.8%

Ratios for Female and Non-Japanese Executive and Corporate Officers (Hitachi, Ltd.)

Research and Development

FY2014FY2015FY2016FY2017FY2018

Ratio of R&D expenditure to revenue (%)

3.4

3.3

3.5

3.6

3.4

Patent application ratio outside Japan (%)

59

59

57

56

58

Scope of Data
Hitachi, Ltd. and consolidated subsidiaries (including variable interest entities).
Number of companies: FY2014: 996; FY2015: 1,057; FY2016: 865; FY2017: 880; FY2018: 804.

FY2018 Cumulative total

Responsible Procurement, Status of CSR Procurement Policies
CSR monitoring (self-check)
CSR audits
Supplier briefings

345 companies

1,510*1

24 companies
126 companies

130*2
235*3

*1 Total number of companies during FY2012-2018 *2 Total number of companies during FY2012-2018 *3 Total number of companies during FY2015-2018

Environment
Rate of reduction in CO2 emissions from use of products and services (base: FY2010)*1 (%)
CO2 emissions from factories and offices (kt-CO2)
Water use (million m3)
Waste and valuables generation (kt)Atmospheric emissions of chemical substances (t)FY2014FY2015FY2016FY2017FY2018

—
4,128
4,686
692
4,415

—
3,895
4,391
618
3,615

35
4,577*2
4,134*2
1,336*2
4,380*2*3

33
4,663*2
3,854*2
1,356*2
4,223*2*3

34
4,470*2
3,702*2
1,384*2
4,392 *2 *3

Scope of Data
Hitachi, Ltd. and consolidated subsidiaries.
Number of companies: FY2014: 996; FY2015: 1,057; FY2016: 865; FY2017: 880; FY2018: 804.
Environmental performance data associated with Hitachi’s business operations: Hitachi Group companies for which the environmental load accounts for 90% of the total(based on Hitachi calculations); data for each fiscal year indicates performance within the given scope for the fiscal year.
*1 New indicator established in fiscal 2016.
*2 Figures include a materials company that has become a consolidated member of the Hitachi Group since fiscal 2016.
*3 The management scope of chemical substances has been expanded from 41 to 50 substances since fiscal 2016.
Independent Assurance of Environmental and Social Data
To enhance the reliability of the data disclosed in the Hitachi Sustainability Report 2018, we have received independent assurance of key
environmental and social performance indicators by KPMG AZSA Sustainability Co., Ltd.
Please refer to the Third-Party Assurance Report of the Hitachi Sustainability Report 2019.
https://www.hitachi.com/sustainability/download/index.html

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Hitachi Integrated Report 2019

Hitachi Group Business Operation Framework

IT

EnergyMobility

Industry

Smart Life

Hitachi, Ltd.

Five Sectors

Financial Institutions Business Unit

SubsidiarySocial Infrastructure Systems Business Unit

Subsidiary

Services & Platforms Business Unit

Subsidiary

Defense Systems Business Unit

Subsidiary

Nuclear Energy Business Unit

Subsidiary

Energy Business Unit

Subsidiary

Building Systems Business Unit

Subsidiary

Railway Systems Business Unit

Subsidiary

Industry & Distribution Business Unit

Subsidiary

Water & Environment Business Unit

Subsidiary

Hitachi Industrial Products, Ltd.

Subsidiary

Hitachi Industrial Equipment Systems Co., Ltd.

Subsidiary

Hitachi Automotive Systems, Ltd.

Subsidiary

Hitachi Global Life Solutions, Inc.

Subsidiary

Healthcare Business Unit

Subsidiary

Hitachi High-Technologies

Subsidiary

Hitachi Construction Machinery

Subsidiary

Hitachi Metals

Subsidiary

Hitachi Chemical

Subsidiary

Regional Headquarters

Subsidiary

Shared Service Companies, etc.

SubsidiaryBusiness Units

Other

Listed Companies

Keywords to Understand Hitachi Value Creation
Society 5.0
Society 5.0 expresses a new idea of society and related efforts toachieve this, as advocated by the Japanese government. The aim is todevelop the economy while addressing societal issues by deploying AI,
IoT, robots and other forms of advanced science and technology tomake use of various data creating an affluent, human-centered society.
The name refers to the evolution of a fifth form of society, continuingfrom the hunter-gatherer, agrarian, industrial, and information societies.
Social Innovation Business
Our Social Innovation Business accelerates collaborative creation withcustomers using the latest digital technologies in a wide range of fields,
including social infrastructure. It also solves various issues faced by society andcustomers by taking advantage of the Hitachi Group's business bases; its totalsolutions, which combine the operational technology (OT), IT, products andsystems it has cultivated over many years; digital solutions such as Lumada;and open innovation achieved through partnerships with operators worldwide.
Hitachi strengths: OT x IT x Products
Hitachi works to provide solutions that utilize digital technology toresolve issues facing customers and society by applying its operational
technology (OT), which boasts a track record of more than 100 years;
its information technology (IT), which has continued to develop for morethan 50 years; and its products, which it has developed andmanufactured using its own technology since its founding.
Lumada Business
Lumada is Hitachi's advanced digital solutions, services, and technologies
for turning customers' data into insights to drive digital innovation. It isderived from the words “illuminate” and “data.” Customer cases refer tocollaborative creation processes of the Lumada business, as well as thoseof which are models for the digital solutions that we have cultivated thus
far. Lumada Solution Hub is a system that packages Lumada solutions
and application development environments in forms that are easy to
implement and provides them on cloud platforms.
NEXPERIENCEThis is a methodology for collaborative creation with customers
advocated by Hitachi. It develops new businesses while visualizing
various insight from multiple perspectives through workshops withcustomers. The approach comprises of "methods" for creating new
businesses, "IT tools" that support the methods and "collaborative
creation spaces for customers" that support discussions at workshops.

103

Data Section

Corporate Data / Stock Information
As of March 31, 2019

Corporate Name
Hitachi, Ltd. (Kabushiki Kaisha
Hitachi Seisakusho)

Number of Shares Issued 		
Common Stock(including treasury stock)

Investor Relations Contacts

966,692,677 shares

6-6, Marunouchi 1-chome,

JAPAN
Hitachi, Ltd.

URL
https://www.hitachi.com/

Chiyoda-ku, Tokyo 100-8280

Number of Shareholders

TEL: +81-3-3258-1111
E-mail: ir.info.hq@hitachi.com

327,497

Principal Office
6-6, Marunouchi 1-chome,
Chiyoda-ku, Tokyo 100-8280, Japan

U.S.A.

Administrator of
Shareholders’ Register

Hitachi America, Ltd.
50 Prospect Avenue,

Tokyo Securities Transfer Agent Co., Ltd.

Founded1910 (Incorporated in 1920)

Capital Stock458,790 million yen

Number of Employees
295,941

Tarrytown, NY 10591

6th Floor, NMF Takebashi Building,

TEL: +1-914-333-2994

3-11, Kanda Nishiki-cho,
Chiyoda-ku, Tokyo 101-0054, Japan

U.K.
Hitachi Europe Ltd.

Stock Exchange Listings

Whitebrook Park,Tokyo, Nagoya

Lower Cookham Road,
Maidenhead, Berkshire SL6 8YA

Accounting Auditor

TEL: +44-1628-585384

Ernst & Young ShinNihon LLC

10 Largest Shareholders
Number of Shares(shares)

Percentage of Total(%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

71,017,400

7.35Japan Trustee Services Bank, Ltd. (Trust Account)

61,402,500

6.36

Hitachi Employees’ Shareholding Association

20,694,676

2.14Japan Trustee Services Bank, Ltd. (Trust Account 9)

20,016,500

2.07

Nippon Life Insurance Company

18,652,999

1.93Japan Trustee Services Bank, Ltd. (Trust Account 5)

17,676,200

1.83

STATE STREET BANK WEST CLIENT-TREATY 505234

16,620,287

1.72

STATE STREET BANK AND TRUST COMPANY 505001

15,466,269

1.60

JP MORGAN CHASE BANK 385151

15,016,920

1.56

STATE STREET BANK AND TRUST COMPANY 505223

14,728,535

1.53

Name

Note: Treasury stock (1,086,667 shares) is not included in the calculation of "Shareholding Ratio."

Ratings
Rating Company

Long-term

Short-termStandard & Poor's Ratings Japan (S&P)

A

A–1

Moody's Japan K.K. (Moody's)

A3

P–2

Rating and Investment Information, Inc. (R&I)

A+*

a–1*

* R&I changed its outlooks from A+ to AA- and a-1 to a-1+ in August 2019.

104

Hitachi Integrated Report 2019

Government and Municipality

Shareholder Composition
Class of Shareholders
Financial Institution and Securities Firm

Number of
Shareholders
338

339,660,799

322,738

192,695,071

Foreign Investor

1,423

417,931,258

Other

2,993

16,390,237

5

15,312

327,497

966,692,677

Individual

Government and Municipality
Total

0.00%

Share Ownership(shares)

Financial Institution
and Securities Firm

Other

35.14%

1.70%

Shareholder
Composition

966,692,677

ForeignInvestor* Treasury stock is included in “Other.”

43.23%

Individual

19.93%

Publication of the Hitachi Integrated Report 2019
Please allow me the opportunity to share a few words as the

I hope that this integrated report will help stakeholders,

supervisor overseeing the publication of Hitachi Integrated

including customers, shareholders and investors, to better

Report 2019.

understand the Hitachi Group and provide an opportunity for

Since fiscal 2016, Hitachi has been publishing an integrated

constructive discussion. Furthermore, we plan to enhance ourreport with the goal of creating deeper understanding

disclosure and raise transparency moving forward, so please

concerning how the Hitachi Group will create value over the

feel free to share any opinions you may have without reserve.

medium to long term.
In the 2019 edition, our fourth edition, we introduce thevisions and goals outlined in our new 2021 Mid-termManagement Plan, which was announced in May 2019, as well

September 2019
Hidenobu Nakahata

as initiatives that aim to raise corporate value by achieving theRepresentative Executive Officer,

plan’s goals. Our CEO has also included a signed message at

Senior Vice President and Executive Officer,

the top of the report on behalf of our management team.

Head of Legal, Risk Management and Corporate Communications,
CHRO, General Manager of Human Capital Group, and Deputy
Manager of Safety Management Division

Website Information
Detailed information is available on the Company’s website.

About Hitachi Group

Investor Relations

Sustainability

https://www.hitachi.co.jp/about/corporate/(Japanese)

https://www.hitachi.co.jp/IR/(Japanese)

https://www.hitachi.co.jp/sustainability/(Japanese)

https://www.hitachi.com/corporate/about/(English)https://www.hitachi.com/IR-e/(English)https://www.hitachi.com/sustainability/(English)105