SOCIAL INNOVATION
IT’S OUR FUTURE

Contents

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SOCIAL INNOVATION –IT’S OUR FUTURE

2	Hitachi‘s History of Transformation(Fiscal 2005 – Fiscal 2014)4

To Our Shareholders

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Outline of 2015 Mid-termManagement Plan		

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Progress of 2015 Mid-termManagement Plan

12	Interview withthe President & COO

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Board of Directors

18

Executive Officers

19

Corporate Governance24

Message from Outside Directors

26

Risk Management

28

CSR Management

30

10-Year Financial Data

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34

36

Financial Section
36		Operating and Financial Review
42		Consolidated Statements ofFinancial Position		 44		Consolidated Statements ofProfit or Loss /Consolidated Statements ofComprehensive Income		 45		Consolidated Statements ofChanges in Equity		 46		Consolidated Statements of				 Cash Flows		48		Summarized Consolidated
Statements of Financial
Position by Manufacturing,Services & Others andFinancial Services						

49		Consolidated Statements ofProfit or Loss by Manufacturing,Services & Others and Financial
Services / Consolidated
Statements of Cash Flows by
Manufacturing, Services &Others and Financial Services

Financial Highlights

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Segment Information		Corporate Data /Stock Information

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 andfinancial 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 anduncertainties 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 beaccurate. 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 fromhistorical 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 major industrial sectors Hitachi serves, including,
without limitation, the information, electronics, automotive,construction and financial sectors;• exchange rate fluctuations of the yen against other currencies inwhich 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 andmarket products that incorporate new technologies on a timely
and cost-effective basis and to achieve market acceptance forsuch products;• 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;• credit conditions of Hitachi’s customers and suppliers;• 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 of materials, parts and components;• fluctuations in product demand and industry capacity;• uncertainty as to Hitachi’s ability to implement measures toreduce the potential negative impact of fluctuations in productdemand, 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 anticipatedbenefits of its strategy to strengthen its Social Innovation Business;• uncertainty as to the success of acquisitions of other companies,
joint ventures and strategic alliances and the possibility ofincurring related expenses;• 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 byother nations on imports and differences in commercial andbusiness 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 othercorporations 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 theCompany, its subsidiaries or its equity-method associates andjoint ventures have become or may become parties;• the possibility of incurring expenses resulting from any defects inproducts or services of Hitachi;• the potential for significant losses on Hitachi’s investments inequity-method associates and joint ventures;• the possibility of disruption of Hitachi’s operations by natural
disasters such as earthquakes and tsunamis, the spread ofinfectious diseases, and geopolitical and social instability such as
terrorism and conflict;• uncertainty as to Hitachi’s ability to maintain the integrity of its
information systems, as well as Hitachi’s ability to protect itsconfidential 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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