Hitachi, Ltd. | Annual Report 2015

Consolidated Statements of Profit or Loss by
Manufacturing, Services & Others and Financial Services
Hitachi, Ltd. and Subsidiaries
March 31, 2015 and 2014
Billions of yen

As of March 31, 2014
Manufacturing,Services andOthers

Financial
Services¥9,467.7

EBIT(Earnings before interest and taxes)Income from continuing operations,
before income taxes

RevenuesNet income attributable to Hitachi, Ltd.
stockholders

As of March 31, 2015

Total*

Manufacturing,Services andOthers

FinancialServices

Total*¥342.6¥9,666.4¥9,569.8¥356.2¥9,774.9659.5

32.7

691.2

499.9

35.4

534.0

647.1

32.7

678.4

485.5

35.4

518.9

  403.7

12.5  413.8  206.0

14.3  217.4* Total figures exclude inter-segment transactions.

Consolidated Statements of Cash Flows by
Manufacturing, Services & Others and Financial Services
Hitachi, Ltd. and Subsidiaries
March 31, 2015 and 2014
Billions of yen

As of March 31, 2014
Manufacturing,Services andOthers

FinancialServices

Cash flows from operating activities¥ 460.8

Cash flows from investing activities
Free cash flows
Cash flows from financing activities

As of March 31, 2015Total*1

Manufacturing,Services andOthers

FinancialServices

Total*1¥(125.0)¥ 306.7¥ 586.4¥ (85.9)¥ 451.8(387.7)(187.8)(550.1)(449.1)(191.3)(612.5)73.1(312.9)(243.4)137.2(277.3)(160.7)(103.7)

326.6

228.8

(69.1)

236.8

233.2

Effect of exchange rate changes on cash
and cash equivalents

55.6

1.3

51.8

65.1

3.4

68.5

Net increase (decrease) in cash and cash
equivalents

25.0

15.0

37.3

133.2

(37.0)

141.0

Cash and cash equivalents at beginningof the year

496.4141.7

523.3

521.4

156.7

560.6

Cash and cash equivalents at end of the year

¥ 521.4¥ 156.7¥ 560.6¥ 654.7¥ 119.7¥ 701.7

Core free cash flows*2    (9.2)(366.5)(377.3)138.1(292.1)(176.4)*1 Total figures exclude inter-segment transactions.
*2	Operating cash flows plus collection of lease receivables less cash outflows for the purchase of property, plant and equipment, intangible assets, and leased assets.
Note: Consolidated Financial Statements by Manufacturing, Services & Others and Financial Services represent unaudited financial information prepared by theCompany 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 to expand 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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