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

Millions of yen20182019¥ 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

OtherNet 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.

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