Financial Section

Consolidated Statements of Cash Flows
Hitachi, Ltd. and Subsidiaries
Years ended March 31, 2014, 2013 and 2012

Millions of yen2014

2013

2012

¥ 364,030¥ 237,721¥ 412,808

Depreciation

329,833

300,664

360,358

Amortization

125,552

117,355

119,308

Impairment losses for long-lived assets

33,79623,20931,841

Deferred income taxes

59,8682,394

21,509Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided
by operating activities:

Equity in net (earning) loss of affiliated companies(8,686)40,447

15,571Gain on sale of investments in securities and other(45,412)(24,047)(228,115)

74

4,762

15,096(131,738)––

Impairment of investments in securities
Gain associated with the thermal power generation systems business(Gain) loss on disposal of rental assets and other property

223

3,119

(18,627)(Increase) decrease in receivables(308,492)

71,777(259,211)(Increase) decrease in inventories(70,700)

7,860(162,594)(Increase) decrease in prepaid expenses and other current assets(90,692)(3,442)

987

Increase (decrease) in payables

54,327(187,651)

119,177

Increase (decrease) in accrued expenses and retirement andseverance benefits

51,946

8,177(18,430)

Increase (decrease) in accrued income taxes

33,460(25,697)

7,103

Increase (decrease) in other liabilities

46,125(22,215)(13,812)Net change in lease receivables related to the Company’s
and its subsidiaries’ products

1,021

12,05127,012Other(5,129)

17,024

17,174439,406

583,508

447,155

Capital expenditures(385,000)(381,731)(337,502)

Purchase of intangible assets(118,870)(105,842)(106,042)

Purchase of tangible assets and software to be leased(436,499)(335,640)(269,350)

33,10928,556

47,697

Net cash provided by operating activities
Cash flows from investing activities:

Proceeds from disposal of property, plant and equipment
Proceeds from disposal of tangible assets and software to be leased

31,306

20,944

17,447

Collection of investments in leases

314,921285,407244,446

Purchase of investments in securities and shares of newly
consolidated subsidiaries(87,542)(171,721)(151,413)

Proceeds from sale of investments in securities and shares ofconsolidated subsidiaries resulting in deconsolidation

122,801

80,602331,007

OtherNet cash used in investing activities

4234,411

25,96828,126¥(491,363)¥(553,457)¥(195,584)

Hitachi, Ltd. | Annual Report 2014

Millions of yen2014

2013

2012

¥(203,885)¥ 74,630¥ 70,105

Cash flows from financing activities:
Increase (decrease) in short-term debt, net
Proceeds from long-term debt

704,457

352,840

388,991

Payments on long-term debt

(365,566)(509,356)(544,841)

5,886

2,523

736

Dividends paid to Hitachi, Ltd. stockholders(48,194)(46,564)(27,018)

Dividends paid to noncontrolling interests(25,535)(25,827)(22,206)

Acquisition of common stock for treasury(4,431)

(162)

(126)

16

25

38

(28,901)(28,191)(39,230)

–

102

6,188

Proceeds from sale of common stock by subsidiaries

Proceeds from sales of treasury stock
Purchase of shares of consolidated subsidiaries from noncontrollinginterest holders
Proceeds from sale of shares of consolidated subsidiaries
to noncontrolling interest holders
Other(879)

(465)

(475)

Net cash provided by (used in) financing activities

32,968(180,445)(167,838)

Effect of exchange rate changes on cash and cash equivalents

49,57458,449(18,966)

Net increase (decrease) in cash and cash equivalents

30,585(91,945)

64,767

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

527,632

619,577554,810¥ 558,217¥ 527,632¥ 619,577

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