About Us

50

Hitachi, Ltd. | Integrated Report 2016

52

Segment Information

54

Financial & Non-Financial Highlights

56

10-Year Financial Data

58

Operating and Financial Review

64	Consolidated Statements of Financial Position
66

Consolidated Statements of Profit or Loss

67	Consolidated Statements of Comprehensive Income
68	Consolidated Statements of Changes in Equity
69

Consolidated Statements of Cash Flows70	Summarized Consolidated Statements of Financial
Position by Manufacturing, Services and Others andFinancial Services

71	Summarized Consolidated Statements of Profit or Lossby Manufacturing, Services and Others and Financial
Services / Summarized Consolidated Statements ofCash Flows by Manufacturing, Services and Others andFinancial Services

72

Corporate Data / Stock Information

51

Segment Information

Revenues (left scale)

Information & Telecommunication Systems

Main Products and Services

Revenues and Profit

Systems Integration,
Consulting,
Cloud Services,
Servers,
Storage,
Software,Telecommunications & Network,
ATMs(Billions of yen)

Class800 train for the UK Intercity Express
Programme (IEP)Electronic Systems & Equipment

6.6%

6.7%

2,034.0

2,109.3

6.8%
1,943.9

2,000

7

6

5.9%
5.2%

1,000

13

14

15
(FY)

0

Revenues and Profit

Industrial Machinery and Plants,
Elevators,
Escalators,
Railway Systems,
Thermal, Nuclear and Renewable
Energy Power Generation
Systems,
Transmission & Distribution
Systems(Billions of yen)

(%)

3,000

12

11.5%
2,333.1
2,066.2

8

2,000
5.3%

4.5%

3.5%

13

14

15
(FY)

0

Revenues and Profit

Semiconductor Processing
Equipment,
Test and Measurement
Equipment,
Advanced Industrial Products,
Medical Electronics Equipment,
Power Tools(Billions of yen)

(%)

1,500

8
1,117.6

1,000

1,131.6

1,127.6
5.9%

6.4%

6

5.7%

5.6%

13

14

15
(FY)

0

Revenues and Profit(Billions of yen)

(%)

900

815.7

802.9

12

758.3

9.2%
7.9%

7.4%

7.3%

8

Main Products and Services

Revenues and Profit

Semiconductor and
Display Related Materials,
Circuit Boards and Materials,
Automotive Parts(Molded Plastics, etc.),
Energy Storage Devices,
Specialty Steels,
Magnetic Materials andComponents,
High Grade Casting Components
and Materials,
Wires and Cables(Billions of yen)

14

1,385.1

15(FY)

1,529.4

1,564.0

9.8%

8.1%
7.5%

12

10

14%

8
〜
〜

14

FY2015

Overseas Revenue Ratio

8.1%
7.9%

7.1%

13

69%
Share of Revenues

1,200

600

7%
FY2015

0

(%)

1,800

FY2015

4

3.0%

13

57%
Overseas Revenue Ratio

3.4%

0

FY2015

Share of Revenues

300

52

10%

4

0

0

FY2015

Overseas Revenue Ratio

4.7%
500

Hitachi Construction Machinery’s Ultra Large
Hydraulic Excavator and Mining Dump Truck

37%
Share of Revenues

5.5%

600

Hitachi Metals’ Amorphous Metals

21%
FY2015

1.2%

Proton Beam Therapy System

High Functional Materials & Components

FY2015

4Main Products and Services

Hydraulic Excavators,
Wheel Loaders,Mining Machinery

33%
Overseas Revenue Ratio

4.3%

1,000

0

Main Products and Services

FY2015

Share of Revenues〜〜

Construction Machinery

19%

5

Main Products and Services

2,234.0

FY2015

Overseas Revenue Ratio

5.2%

〜
〜
0

EBIT ratio (right scale)

Share of Revenues
(%)

3,000

Storage System

Social Infrastructure & Industrial Systems*1

Adjusted operating income ratio (right scale)

15
(FY)

0

FY201557%

Hitachi, Ltd. | Integrated Report 2016

Revenues (left scale)

Automotive Systems

Main Products and Services

Revenues and Profit

Engine Management Systems,
Electric Powertrain Systems,
Drive Control Systems,
Car Information Systems(Billions of yen)

Adjusted operating income ratio (right scale)

Share of Revenues
(%)

1,200

1,001.1

936.9

892.4

9

6.2%

5.1%
4.9%

800

6
5.4%

3.7%

FY201513

0Main Products and Services

Revenues and Profit

Air-Conditioning Equipment,
Room Air Conditioners,
Refrigerators,
Washing Machines(Billions of yen)

14

15
(FY)

0

(%)

900

8

754.2

744.0

681.0

600

6.2%

6

3.5%

4

Others (Logistics*2 and Other Services)

3.8%

3.3%

〜
〜

13

Main Products and Services

Revenues and Profit

Logistics,
Optical Disk Drives,
Property Management,
Others(Billions of yen)

FY2015

6%
Overseas Revenue Ratio

3.8%
300

0

58%
Share of Revenues

4.6%

Hitachi Appliances’ Large
Capacity Refrigerator “Vacuum
Compartment” X Series

9%

3
0.4%

Smart Life & Ecofriendly Systems

FY2015

Overseas Revenue Ratio

400

Hitachi Automotive
Systems’ Inverter

EBIT ratio (right scale)

14

15
(FY)

0

FY201534%
Share of Revenues

(%)

1,800

6
1,454.9
1,274.2
4.0%

1,200

4.2%
1,252.7
3.2%

4

3.3%

2.9%

FY2015

11%
Overseas Revenue Ratio

600

Hitachi Transport System’s Truck andMetropolitan East Distribution Center

Financial Services*2

FY201513

0Main Products and Services

Revenues and Profit

Leasing,(Billions of yen)

Loan Guarantees

2

1.6%

14

15
(FY)

0

Share of Revenues
(%)

600

14
12.8%
12.4%
356.2

342.6

400

28%

365.3

10.9%

12

FY2015

3%
Overseas Revenue Ratio

200

9.7%

9.6%

10

9.9%

〜
〜
0

Hitachi Capital’s Hitachi Corporate Card

13

14

15
(FY)

0

FY201538%*1 Effective on April 1, 2015, “Power Systems” became part of “Social Infrastructure & Industrial Systems.” Figures for each segment, including figures for the previous fiscal year,
reflect the new segmentation.
*2 Conversion into equity-method affiliates: Hitachi Transport System, Ltd., in May 2016 and Hitachi Capital Corporation in October 2016 or after53

Financial and Non-Financial Highlights

Revenues / Overseas sales ratio

Operating income (Adjusted operating income) /Operating income (Adjusted operating income) ratio / EBIT / EBIT ratio

Millions of yen%

12,000,000

60

800,000

8

10,000,000

50

600,000

6

8,000,000

40

400,000

46,000,000

30

200,000

2

4,000,000

20

0

0

2,000,000

10–200,000–20– 400,000

0

06

07

08

09
10
11
U.S. GAAP

Revenues ( Japan
Asia
North America
Overseas sales ratio (right scale)

12
Europe

13

14

13

14
IFRS

15

Millions of yen

06

%

07

08

(FY)

Other Areas) (left scale)

09
10
11
U.S. GAAP

12

13

14

13

14
IFRS

–4

15

(FY)

Operating income (Adjusted operating income) (left scale)
EBIT (left scale)Operating income ratio (Adjusted operating income) (right scale)
EBIT ratio (right scale)

Return on equity (ROE) / Return on assets (ROA)

Cash flows%Millions of yen
900,000

30

20

10

450,000

0

0

–10

–20

–450,000

–30

–40

–50

ROE

06

07

08

09
10
11
U.S. GAAP

12

13

14

13

14
IFRS

15

(FY)

ROA

–900,000

06

07

08

09
10
11
U.S. GAAP

Cash flows from operating activities

12

13

14

13

Cash flows from investing activities

14
IFRS

15

Free cash flows

Capital expenditures*1 / Depreciation

R&D expenditures / R&D expenditures as a percentage ofconsolidated revenues

Millions of yen

Millions of yen

1,200,000(FY)%

500,000

5.0

400,000

4.0

300,000

3.0

200,000

2.0

100,000

1.0

800,000

400,000

0

06

07

Capital expenditures

54

08

09
10
11
U.S. GAAP

Depreciation

12

13

14

13

14
IFRS

15

0

(FY)

06

07

08

09
10
11
U.S. GAAP

12

13

14

R&D expenditures (left scale)R&D expenditures as a percentage of consolidated revenues (right scale)

13

14
IFRS

0

15

(FY)

Hitachi, Ltd. | Integrated Report 2016

Eco-product sales ratio (sales revenues)

CO2 emissions%

kt-CO2e
100

5,000

80

4,000

60

3,000

40

2,000

20

1,000

0

10

11

12

13

14

15

0

(FY)

10

11

Number of employees*2*3

Average service (years)*3

PeopleYears

40,00020

30,00015

20,00010

10,000

5

0

Male

10

11

12

13

14

15

0

(FY)

FemaleMale

Number and ratio of female managers*3

10Female

11

12

13

14

15

(FY)

12

13

14

15

(FY)

12

13

14

15

(FY)

Average service (years)

Number of registrations

People%
500

10

400

8

300

6

200

4

15,00010,000

5,000

100

0

2

10

11

12

13

14

0

15

0

10

11

(FY)
Section chief
Section chief

General manager or above
General manager or above

Female managers (number/left scale)
Female managers (ratio/right scale)

Domestic

Overseas*4*1 From fiscal 2013, capital investment is stated exclusive of investment in lease assets classified as finance leases.
*2 Number of full-time employees*3 Hitachi, Ltd.
*4 Total number of patents registered in the United States, Europe, and China. The number of patents registered in Europe is based on European patent applications
under European Patent Convention (EPC).

55

10-Year Financial Data
Hitachi, Ltd. and Subsidiaries

U.S. GAAPFor the year:
Revenues

FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012¥10,247,903¥11,226,735¥10,000,369¥8,968,546¥9,315,807¥9,665,883¥9,041,071

Operating income

182,512345,516

127,146

202,159444,508

412,280

422,028

EBIT (Earnings before interest and taxes)

214,218

335,729(275,239)

77,815443,812573,218

358,015(32,799)(58,125)(787,337)(106,961)

238,869

347,179

175,326 Net income (loss) attributable to
Hitachi, Ltd. stockholders
Cash flows from operating activities

615,042

791,837

558,947

798,299

841,554447,155

583,508

Cash flows from investing activities(786,170)(637,618)(550,008)(530,595)(260,346)(195,584)(553,457)

Free cash flows(171,128)

154,219

8,939

267,704

581,208

251,571

30,051

Cash flows from financing activities

121,259(185,556)

284,388(502,344)(584,176)(167,838)(180,445)

Cash dividends declared

19,974

19,947

9,971—

36,13336,727

47,690 Capital expenditures(Property, plant and equipment)

1,048,572

969,087

788,466

546,326

556,873649,234

742,537

Depreciation (Property, plant and equipment)

472,175

541,470

478,759441,697382,732

360,358

300,664

R&D expenditures

412,534

428,171416,517372,470

395,180

412,514341,310

Total assets

10,644,259

10,530,847

9,403,709

8,964,464

9,185,629

9,418,526

9,809,230

Property, plant and equipment

2,688,977

2,653,918

2,393,946

2,219,804

2,111,270

2,025,538

2,279,964

Total Hitachi, Ltd. stockholders’ equity

2,442,797

2,170,612

1,049,951

1,284,658

1,439,865

1,771,782

2,082,560

Interest-bearing debt

2,687,450

2,531,506

2,820,109

2,367,143

2,521,551

2,396,454

2,370,079

Number of employees

349,996

347,810

361,796359,746

361,745

323,540

326,240  Basic¥(9.84)¥(17.48)¥(236.86)¥(29.20)¥52.89¥76.81¥37.28  Diluted(9.87)(17.77)(236.87)(29.20)

49.38

71.86

36.29

6.0

6.0

3.0

­—

8.0

8.0

10.0

734.66652.95315.86287.13318.73382.26431.13Operating income ratio

1.8

3.1

1.3

2.3

4.8

4.3

4.7

EBIT ratio

2.1

3.0

–2.8

0.9

4.8

5.9

4.0

Return on revenues

–0.3

–0.5

–7.9

–1.2

2.6

3.6

1.9

Return on equity (ROE)

–1.3

–2.5

–48.9

–9.2

17.5

21.6

9.1

Return on assets (ROA)

0.4

0.5

–8.0

–0.9

3.3

4.4

2.5

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

0.76

0.76

1.29

1.04

1.03

0.86

0.75

Total Hitachi, Ltd. stockholders’ equity ratio

22.9

20.6

11.2

14.3

15.7

18.8

21.2

At year-end:

Per share data: Net income (loss) attributable to
Hitachi, Ltd. stockholders:Cash dividends declared
Total Hitachi, Ltd. stockholders’ equity

Financial ratios:

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 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.
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 are included 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 andits ­subsidiaries reviewing and reshaping the business portfolio.
3	EBIT is presented as income before income taxes less interest income plus interest charges.
4	The Company has changed the number of employees to exclude temporary employees starting from the year ended March 31, 2010. The figures for the prior years have been
restated to reflect the current year’s presentation.
5	Effective from FY2014, 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 integrationin 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” for FY2013 are reclassified.
6 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

56

Hitachi, Ltd. | Integrated Report 2016

Millions of yen

Millions of yen

FY2013

FY2014IFRS
For the year:¥9,563,791¥9,761,970

Revenues¥9,666,446¥9,774,930¥10,034,305

538,288

600,479

Adjusted operating income

604,798

641,325

634,869

585,662551,018

EBIT

691,230

534,059

531,003413,877

217,482

172,155

264,975

241,301 Net income attributable to
Hitachi, Ltd. stockholders

FY2013

FY2014FY2015439,406

447,348

Net cash provided by operating activities

306,777

451,825

812,226(491,363)(610,255)

Net cash used in investing activities(550,179)(612,545)(730,799)(51,957)(162,907)

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

81,42732,968250,335

Net cash provided by (used in) financing activities

228,840

233,206(26,467)

50,711

57,944

Cash dividends declared

50,711

57,94457,939 Capital expenditures(Property, plant and equipment)

849,877

848,716

491,170

431,201

528,551

329,833

349,614

Depreciation (Property, plant and equipment)

331,228

350,783

366,547

351,426

335,515

R&D expenditures

354,487

334,814

333,730

11,016,899

12,395,379

Total assets

11,098,191

12,433,727

12,551,005

2,342,091

2,564,105

Property, plant and equipment

2,258,933

2,472,497

2,500,226

2,651,241

2,930,309

Total Hitachi, Ltd. stockholders’ equity

2,668,657

2,942,281

2,735,078

2,823,049

3,354,616

Interest-bearing debt

3,033,985

3,557,356

3,604,455

320,725

333,150

Number of employees

323,919

336,670

335,244

At year-end:

Yen

Yen

Per share data: Earnings per share attributable to
Hitachi, Ltd. stockholders:¥54.86¥49.97  Basic¥85.69¥45.04¥35.65

54.85

49.93

  Diluted

85.66

45.00

35.62

10.5

12.0

10.5

12.0

12.0

549.02606.87552.62609.35566.48Cash dividends declared
Total Hitachi, Ltd. stockholders’ equity%%

Financial ratios:
5.6

6.2

Adjusted operating income ratio

6.3

6.6

6.3

6.1

5.6

EBIT ratio

7.2

5.5

5.3

2.8

2.5

Return on revenues

4.3

2.2

1.7

11.2

8.6

Return on equity (ROE)

17.5

7.8

6.1

3.5

3.1

Return on assets (ROA)

5.0

2.9

2.4

0.78

0.83

0.87

24.0

23.7

21.8

0.73

0.78

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

24.1

23.6

Total Hitachi, Ltd. stockholders’ equity ratio

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 administrative expenses.
The Company believes that this is useful to investors in comparing the Company’s financial results with those ofother Japanese companies.
2	A part of the thermal power generation systems business is classified as a discontinued operation in accordancewith the provision of IFRS 5, “Non-current Assets Held for Sale and Discontinued Operations,” which was nottransferred to MITSUBISHI HITACHI POWER SYSTEMS, LTD. for the business integration in the thermal power­generation 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	ROA (Return on Assets) = Net income / Total Assets (Average between the end of current fiscal year and the endof previous fiscal year) x 100

57

Financial Section

Operating and Financial Review

Operating Results

Other income increased ¥48.1 billion to ¥57.5 billion andother expenses decreased ¥25.9 billion to ¥141.8 billion, as com-

Effective from April 1, 2015, the Power Systems segment has
been integrated to the Social Infrastructure & Industrial Systems
segment. Figures for the Social Infrastructure & Industrial Systems
segment, including figures for the year ended March 31, 2015,reflect the new segmentation.

compared with the year ended March 31, 2015. This mainly consisted of impairment losses recognized for certain assets as a

2015

2016

Percentchange¥9,774.9¥10,034.3

3%

534.0

531.0

–1%

Years ended March 31

Income fromcontinuing operations,
before income taxes
Net income attributable
to Hitachi, Ltd.
stockholders

Net loss on sales and disposal of fixed assets decreased ¥12.3
billion to ¥4.4 billion, as compared with the year ended March
Impairment losses increased ¥2.6 billion to ¥44.7 billion, as

Billions of yen

EBITdetails are as follows.

31, 2015.

Summary

Revenues

pared with the year ended March 31, 2015, respectively. The

result of business portfolio restructuring in the Information &Telecommunication Systems segment.
Net gain on business reorganization and others was ¥55.2 billion, as compared with net loss of ¥55.0 billion in the year ended
March 31, 2015. The net gain in the year ended March 31, 2016

518.9

517.0

0%

was due mainly to posting a gain on sales of shares of UniCarriers
Holdings Corporation by Hitachi Construction Machinery Co., Ltd.

217.4

172.1

–21%

in the Construction Machinery segment and sales of shares ofHitachi Tool Engineering, Ltd. by Hitachi Metals, Ltd. in the High
Functional Materials & Components segment as well as the reor-

Analysis of Statement of Operations
Revenues increased 3% to ¥10,034.3 billion, as compared withthe year ended March 31, 2015. This was due mainly to higher
revenues in the Information & Telecommunication Systems, Social
Infrastructure & Industrial Systems, High Functional Materials &Components and Automotive Systems segments, etc. This
increase was partially offset by lower revenues in the Construction
Machinery, Smart Life & Ecofriendly Systems and Others (Logistics
and Other services) segments, etc.
Cost of sales increased 4% to ¥7,459.0 billion, as comparedwith the year ended March 31, 2015, and the ratio of cost of
sales to revenues was 74%, which was the same level as the year
ended March 31, 2015. Gross profit was ¥2,575.2 billion, which
was the same level as the year ended March 31, 2015.
Selling, general and administrative expenses were ¥1,940.3
billion, which was the same level as the year ended March 31,
2015, and the ratio of selling, general and administrative
expenses to revenues was 19%, as compared with 20% for theyear ended March 31, 2015.

ganization of the air-conditioning systems business in the Smart
Life & Ecofriendly Systems segment.
Restructuring charges increased ¥10.1 billion to ¥36.8 billion,
as compared with the year ended March 31, 2015. This mainly
consisted of expenses for business restructuring in the
Information & Telecommunication Systems segment.
Expenses related to competition law and others decreased¥3.5 billion to ¥22.3 billion, as compared with the year ended
March 31, 2015.
Financial income (excluding interest income) increased ¥2.8
billion to ¥10.6 billion and financial expenses (excluding interest
charges) increased ¥27.0 billion to ¥30.2 billion, as comparedwith the year ended March 31, 2015, respectively. This was due
mainly to an increase in exchange loss from ¥23.9 billion to ¥26.5
billion, as compared with the year ended March 31, 2015.
Share of profits of investments accounted for using the equity
method decreased ¥46.5 billion to ¥0.1 billion due mainly todeterioration of profitability of overseas equity-method associates,
as compared with the year ended March 31, 2015.
EBIT decreased ¥3.0 billion to ¥531.0 billion, as compared withthe year ended March 31, 2015.

58

Hitachi, Ltd. | Integrated Report 2016

Interest income decreased ¥0.5 billion to ¥12.0 billion andinterest charges decreased ¥1.6 billion to ¥25.9 billion, as
compared with the year ended March 31, 2015, respectively.
Income from continuing operations, before income taxes
decreased ¥1.9 billion to ¥517.0 billion, as compared with theyear ended March 31, 2015.
Income taxes increased ¥43.1 billion to ¥165.2 billion, as compared with the year ended March 31, 2015, due mainly to tax
expense recognized for partial transfer of shares of Hitachi
Transport System, Ltd. and Hitachi Capital Corporation.
Loss from discontinued operations increased ¥3.5 billion to¥57.0 billion, as compared with the year ended March 31, 2015.
Net income decreased ¥48.6 billion to ¥294.7 billion, as
compared with the year ended March 31, 2015.
Net income attributable to non-controlling interests decreased¥3.3 billion to ¥122.5 billion, as compared with the year ended
March 31, 2015.
As a result of the foregoing, net income attributable to
Hitachi, Ltd. stockholders decreased ¥45.3 billion to ¥172.1 billion,
as compared with the year ended March 31, 2015.

Operations by Segment
The following is an overview of results of operations by segment.
Revenues for each segment include intersegment transactions.
Segment profit is measured by EBIT.
(Information & Telecommunication Systems)
Revenues increased 4% to ¥2,109.3 billion, as compared with theyear ended March 31, 2015, due mainly to solid performances by
the system solutions business centered on financial systems andhigher revenues from the storage solutions business as a result of
the effects of foreign exchange rate fluctuations.
Segment profit increased ¥3.0 billion to ¥109.1 billion, as
compared with the year ended March 31, 2015, due mainly tohigher profits in the system solutions business resulting fromincreased revenues. This increase was partially offset by lower
profits in the platform business owing to the effect of reduction
in capital investment by Japanese telecommunications carriers in
the telecommunications & network business, to decreased
demand for high-end storage in North America and to posting
expenses related to business restructuring.
(Social Infrastructure & Industrial Systems)
Revenues increased 13% to ¥2,333.1 billion, as compared withthe year ended March 31, 2015, due mainly to significantly
increased revenues from the railway systems business resulting
from the acquisition of relevant businesses from Finmeccanica
S.p.A. and to solid performances by the power generation systems
business and the elevators and escalators business.
Segment profit decreased ¥81.2 billion to ¥29.1 billion, as
compared with the year ended March 31, 2015. This decrease
was due mainly to increased losses from Middle Eastern projects
in the infrastructure systems business, to a decrease in share of
profits of investments accounted for using the equity method, toposting expenses related to business restructuring and currency
exchange loss, and to the absence of net gain on business reorganization and others relating to Mitsubishi-Hitachi Metals
Machinery, Inc. posted in the year ended March 31, 2015.

59

Financial Section(Electronic Systems & Equipment)

Segment profit increased ¥29.6 billion to ¥153.5 billion, as

Revenues were ¥1,127.6 billion, which was the same level as thecompared with the year ended March 31, 2015. This increase wasyear ended March 31, 2015. Hitachi High-Technologies

due mainly to higher revenues, the effects of business restructur-

Corporation posted higher revenues due mainly to higher sales ofing and posting net gain on business reorganization and others

electron microscopes and clinical analyzers, and Hitachi Koki Co.,

related to the sale of a part of equity interest in Hitachi Tool

Ltd. also posted higher revenues due mainly to higher sales ofEngineering, Ltd. by Hitachi Metals, Ltd.

power tools in North America. These results were offset by lower
revenues at Hitachi Kokusai Electric Inc., which was affected by a(Automotive Systems)

drop in post-earthquake reconstruction demand following Great

Revenues increased 7% to ¥1,001.1 billion, as compared with theEast Japan Earthquake.

year ended March 31, 2015, due mainly to growth in sales driven

Segment profit increased ¥0.5 billion to ¥64.3 billion, as com-by robust demand for automobiles in North America and China.

pared with the year ended March 31, 2015. This increase was due

Segment profit increased ¥18.9 billion to ¥53.9 billion, as

mainly to non-recurring gain posted for the shift to defined con-compared with the year ended March 31, 2015, due mainly totribution pension plan at Hitachi High-Technologies Corporation,higher revenues, a decrease in expenses related to competition

and to improved profit in the healthcare business resulting fromlaw and others, and a decrease in exchange loss.

the effect of business restructuring. Hitachi Kokusai Electric Inc.
posted decreased profit owing to lower revenue, and Hitachi Koki

(Smart Life & Ecofriendly Systems)

Co., Ltd. also posted decreased profit owing to the effect of the

Revenues decreased 10% to ¥681.0 billion, as compared withforeign exchange rate fluctuations and economic slowdown inthe year ended March 31, 2015, due mainly to the effect of reor-

emerging countries and resource-producing countries.

ganization of the air-conditioning systems business. This decrease
was partially offset by solid performance in the home appliances(Construction Machinery)
Revenues decreased 7% to ¥758.3 billion, as compared with thebusiness such as refrigerators and washing machines.
Segment profit increased ¥7.4 billion to ¥41.9 billion, as com-

year ended March 31, 2015, due mainly to sluggish market con-pared with the year ended March 31, 2015, due mainly to theditions in Asia, in particular China, as well as Oceania and Russia.

net gain on business reorganization and others related to the

Segment profit decreased ¥34.7 billion to ¥25.8 billion, as

reorganization of the air-conditioning systems business, despitecompared with the year ended March 31, 2015, due mainly to

lower revenues.

lower revenues and to a higher proportion of compact models
with lower profitability in the product mix owing to exhaust emis-(Others (Logistics and Other services))sion regulations in Japan and changes in product mix for China

Revenues decreased 2% to ¥1,252.7 billion, as compared withmarket. This decrease was also attributable to disposal of invento-

the year ended March 31, 2015, due mainly to lower revenues ofries, foreign exchange losses owing to the depreciation of emerg-

optical disk drives business owing to weaker demand.

ing-market currencies, and posting expenses for business

Segment profit decreased ¥10.4 billion to ¥40.6 billion, as

restructuring. This decrease was partially offset by net gain on

compared with the year ended March 31, 2015, due mainly tobusiness reorganization and others related to the sale of shares of

expenses related to business restructuring in optical disk drives

UniCarriers Holdings Corporation.

business, despite increased profits at Hitachi Transport System, Ltd
resulting from improved profitability.

(High Functional Materials & Components)
Revenues increased 2% to ¥1,564.0 billion, as compared with the(Financial Services)year ended March 31, 2015. This increase was due mainly to the

Revenues increased 3% to ¥365.3 billion, as compared with theeffects of the consolidation of Waupaca Foundry Holdings, Inc. by

year ended March 31, 2015, due mainly to solid performance in

Hitachi Metals, Ltd. in November 2014 and of CSB Battery Co.,

Japan and strong performance in overseas business, particularly inLtd. by Hitachi Chemical Company, Ltd. in January 2015, and to

North America.

solid performances for automobile-related products. This increase

Segment profit increased ¥11.2 billion to ¥46.6 billion, as

was partially offset by the impact of slowdown in Chinese market

compared with the year ended March 31, 2015, due mainly toand decreased demand for electronics-related products.

higher revenues, the absence of expenses related to businessrestructuring posted in the year ended March 31, 2015, and theeffects of such business restructuring.

60

Hitachi, Ltd. | Integrated Report 2016

Revenues by Geographic Area

(North America)
Revenues in North America increased 20% to ¥1,280.3 billion, as

The following is an overview of revenues attributed tocompared with the year ended March 31, 2015. This increase wasgeographic areas based on customer location.

due mainly to higher revenues in the High Functional Materials &Billions of yen

2015

2016

PercentchangeJapan¥5,220.3¥5,231.50%Overseas Revenues
Subtotal

4,554.5

4,802.75%

Asia2,178.2

2,112.3–3%

North America

Years ended March 31:

Components segment as a result of the effects of the consolidation of Waupaca Foundry Holdings, Inc. by Hitachi Metals, Ltd.,and in the Automotive Systems segment, despite lower revenues
in the Construction Machinery and Others (Logistics and Other

1,064.1

1,280.3

20%

Europe

841.9

951.1

13%

Other Areas

470.2

459.0

–2%

Total Revenues¥9,774.9¥10,034.3

3%

Japan
Revenues in Japan were ¥5,231.5 billion, which was the samelevel as the year ended March 31, 2015. This was due mainly tohigher revenues from the system solutions business centered on
financial systems in the Information & Telecommunication
Systems segment, and higher revenues from the power generation systems business and the infrastructure systems business in
the Social Infrastructure & Industrial Systems segment, despite
lower revenues in the High Functional Materials & Components
and Automotive Systems segments, etc.
Overseas

services) segments.
(Europe)
Revenues in Europe increased 13% to ¥951.1 billion, as comparedwith the year ended March 31, 2015. This increase was due mainly
to higher revenues in the Social Infrastructure & Industrial Systems
segment which reported increased revenues from the railway systems business, and in the Information & Telecommunication
Systems segment, despite lower revenues in the Construction
Machinery and Smart Life & Ecofriendly Systems segments.
(Other Areas)
Revenues in other areas decreased 2% to ¥459.0 billion, as compared with the year ended March 31, 2015. This decrease wasdue mainly to lower revenues in the Construction Machinery andSmart Life & Ecofriendly Systems segments, despite higher revenues
in the Social Infrastructure & Industrial Systems segment which
reported increased revenues from the railway systems business.

Overseas revenues increased 5% to ¥4,802.7 billion, as comparedwith the year ended March 31, 2015, and the ratio to total revenues was 48%, compared with 47% for the year ended March
31, 2015.
(Asia)
Revenues in Asia decreased 3% to ¥2,112.3 billion, as comparedwith the year ended March 31, 2015. This was due mainly to
lower revenues in the Smart Life & Ecofriendly Systems segment,
which was affected by the reorganization of the air-conditioning
systems business, and in the Construction Machinery segment
mainly because of decreased sales particularly in China, despite
higher revenues in the Automotive Systems and Social
Infrastructure & Industrial Systems segments, etc.

61

Financial Section

Liquidity and Capital Resources
Our management considers maintaining an appropriate level ofliquidity and securing adequate funds for current and future business operations to be important financial objectives. Through efficient management of working capital and selective investment in
new plants and equipment, we are working to optimize the efficiency of capital utilization throughout our business operations.
We endeavor to improve our group cash management by centralizing such management among us and our overseas financial subsidiaries. Our internal sources of funds include cash flows

We receive debt ratings from Moody’s Japan K.K. (Moody’s),Standard & Poor’s Rating Japan (S&P), as well as Rating andInvestment Information, Inc. (R&I). Our debt ratings as ofMarch 31, 2016 were as follows.
Rating Company

Long-term

Short-term

A3

P-2

S&P

A–

A-2

R&I

A+

a-1

Moody’sWith our current ratings, we believe that our access to thegenerated by operating activities and cash on hand. Our manage-

global capital markets will remain sufficient for our financing

ment also considers short-term investments to be an immediately

needs. We seek to improve our credit ratings in order to ensure

available source of funds. In addition, we raise funds both in thefinancial flexibility for liquidity and capital management, and tocapital markets and from Japanese and international commercial

continue to maintain access to sufficient funding resources

banks in response to our capital requirements. Our management’s

through the capital markets.

policy is to finance capital expenditures primarily by internallygenerated funds and to a lesser extent by funds raised throughCash Flows

the issuance of debt and equity securities in domestic and foreign
capital markets. In order to flexibly access funding, we maintainour shelf registration with the maximum outstanding balance of¥300.0 billion.
We maintain commitment line agreements with a number ofdomestic banks under which we may borrow in order to ensure
efficient access to necessary funds. These commitment line agreements generally provide for a one-year term, renewable upon
mutual agreement between us and each of the lending banks, aswell as another commitment line agreement with a contract termof three years ending in July 2019. As of March 31, 2016, ourunused commitment lines totaled ¥553.0 billion, including theseof ¥400.0 billion which the Company maintained.

Billions of yen

2015

2016

Net cash provided by operating activities¥ 451.8¥ 812.2

Net cash used in investing activities(612.5)(730.7)

Net cash provided by (used in)financing activities

233.2(26.4)

Effect of exchange rate changes
on cash and cash equivalents

68.5(57.3)Net increase (decrease) incash and cash equivalents

141.0

(2.3)

Years ended March 31:

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

560.6

701.7

¥ 701.7¥ 699.3(Cash Flows from Operating Activities)
Net income in the year ended March 31, 2016 decreased ¥48.6
billion, as compared with the year ended March 31, 2015.
Changes in working capital in the year ended March 31, 2016
from collection of receivables, a decrease in inventories andchanges in trade payables improved net cash flow by ¥148.3 billion, ¥160.6 billion and ¥16.4 billion, respectively. As a result of
the foregoing, net cash provided by operating activities was¥812.2 billion in the year ended March 31, 2016, an increase of¥360.4 billion compared with the year ended March 31, 2015.

62

Hitachi, Ltd. | Integrated Report 2016

(Cash Flows from Investing Activities)
Proceeds from sales of investments in securities and other financial assets (including investments in subsidiaries and investments
accounted for using the equity method) increased by ¥16.2 billion
as compared with the year ended March 31, 2015. Net amountof investments related to property, plant and equipment*1 was¥652.3 billion in the year ended March 31, 2016, an increase of¥83.7 billion as compared with the year ended March 31, 2015.
Purchase of investments in securities and other financial assets(including investments in subsidiaries and investments accounted
for using the equity method) in the year ended March 31, 2016was ¥196.6 billion, an increase of ¥43.7 billion as compared withthe year ended March 31, 2015, due mainly to the acquisition of
relevant businesses from Finmeccanica S.p.A. and the acquisitionof Pentaho Corporation by Hitachi Data Systems Corporation. As
a result of the foregoing, net cash used in investing activities was¥730.7 billion in the year ended March 31, 2016, an increase of¥118.2 billion compared with the year ended March 31, 2015.
*1 The sum of the purchase of property, plant and equipment, the purchase ofintangible assets and the purchase of leased assets, less the proceeds fromsale of property, plant, equipment and intangible assets, the proceeds fromsale of leased assets and the collection of lease receivables(Cash Flows from Financing Activities)
Net cash outflow from a decrease in short-term debt increased by¥206.7 billion as compared with the year ended March 31, 2015.
Proceeds related to long-term debt*2 in the year ended March 31,
2016 was ¥180.6 billion, a decrease of ¥25.4 billion as comparedwith the year ended March 31, 2015. As a result of the foregoing, net cash used in financing activities was ¥26.4 billion in theyear ended March 31, 2016, an increase in net cash outflow of¥259.6 billion compared with the year ended March 31, 2015.
*2 The proceeds from long-term debt, less the payments on long-term debt

As a result of the above items, as of March 31, 2016, cash andcash equivalents amounted to ¥699.3 billion, net decrease of¥2.3 billion from March 31, 2015. Free cash flows, the sum of
cash flows from operating and investing activities, represented an
inflow of ¥81.4 billion in the year ended March 31, 2016, anincrease in net cash inflow of ¥242.1 billion from the year ended
March 31, 2015.

Assets, Liabilities and Equity
As of March 31, 2016, total assets amounted to ¥12,551.0 billion,
an increase of ¥117.2 billion from March 31, 2015. This was due
mainly to the effect of the acquisition of the signaling systems
and railway businesses of Finmeccanica S.p.A. and the acquisitionof Pentaho Corporation by Hitachi Data Systems Corporation,
and an increase in trade receivables associated with businessexpansion, especially for foreign markets, in the Financial Services
segment. This increase was partially offset by the effect of reorganization of the air-conditioning systems business, decreases in thevalue of assets denominated in foreign currency owing to theappreciation of yen, the effect of lower stock price and the effectof inventory reduction. Cash and cash equivalents as of March 31,
2016 amounted to ¥699.3 billion, a decrease of ¥2.3 billion fromthe amount as of March 31, 2015.
As of March 31, 2016, total interest-bearing debt, the sum ofshort-term debt and long-term debt, amounted to ¥3,604.4 billion, an increase of ¥47.0 billion from March 31, 2015. As of
March 31, 2016, short-term debt, consisting mainly of borrowings from banks and commercial paper, amounted to ¥871.4 billion, a decrease of ¥106.2 billion from March 31, 2015, due
mainly to the repayment of commercial paper by the Company.
As of March 31, 2016, current portion of long-term debt
amounted to ¥651.5 billion, an increase of ¥167.9 billion fromMarch 31, 2015. As of March 31, 2016, long-term debt (excluding current portion), consisting mainly of debentures, debentureswith stock acquisition rights, medium-term notes and loans principally from banks and insurance companies, amounted to¥2,081.5 billion, a decrease of ¥14.6 billion from March 31,
2015, due mainly to increased amount of debt maturing in theyear ending March 31, 2017, despite higher demand for funds inline with business expansion in the Financial Services segment.
As of March 31, 2016, total Hitachi, Ltd. stockholders’ equity
amounted to ¥2,735.0 billion, a decrease of ¥207.2 billion fromMarch 31, 2015, due mainly to a decrease in the accumulated
other comprehensive income owing primarily to the appreciationof yen, lower stock prices, and lower interest rates, despite posting of net income attributable to Hitachi, Ltd. stockholders. As aresult, the ratio of total Hitachi, Ltd. stockholders’ equity to total
assets as of March 31, 2016 was 21.8%, compared with 23.7%
as of March 31, 2015.
Non-controlling interests as of March 31, 2016 was ¥1,390.4
billion, an increase of ¥36.4 billion from March 31, 2015.
Total equity as of March 31, 2016 was ¥4,125.5 billion, adecrease of ¥170.7 billion from March 31, 2015. The ratio ofinterest-bearing debt to total equity increased to 0.87, comparedwith 0.83 as of March 31, 2015.
63Financial Section

Consolidated Statements of Financial Position
Hitachi, Ltd. and Subsidiaries
March 31, 2016 and 2015

Millions of yen

AssetsCurrent assets
Cash and cash equivalents

2015

2016

¥   701,703¥   699,315

Trade receivables

2,870,042

2,992,770

Lease receivables

337,353

338,758

1,458,119

1,299,855

Other current assets

Inventories

515,195

541,857   Total current assets

5,882,412

5,872,555

Investments accounted for using the equity method

681,623

676,960

Investments in securities and other financial assets

1,449,734

1,329,974

680,620

727,485

2,472,497

2,500,226

Non-current assets

Lease receivables
Property, plant and equipment
Intangible assets

933,582

1,070,403

Other non-current assets

333,259

373,402   Total non-current assets

6,551,315

6,678,450¥12,433,727¥12,551,005    Total Assets

64

Hitachi, Ltd. | Integrated Report 2016

Millions of yen

Liabilities
Current liabilities
Short-term debt

2015

2016

¥   977,701¥   871,417

Current portion of long-term debt

483,521651,518

Other financial liabilities

296,425

280,048

Trade payables

1,426,523

1,451,918

Other current liabilities

1,595,308

1,739,315   Total current liabilities

4,779,478

4,994,216

Non-current liabilities
2,096,134

2,081,520

Other financial liabilities

Long-term debt

117,535

115,155

Retirement and severance benefits

724,223

783,670

Other non-current liabilities

420,015450,874   Total non-current liabilities

3,357,907

3,431,219   Total Liabilities

8,137,385

8,425,435

Common stock

458,790458,790

Capital surplus

608,416

586,790

1,477,517

1,609,761

401,100

83,543(3,542)(3,806)EquityHitachi, Ltd. stockholders’ equity

Retained earnings
Accumulated other comprehensive income
Treasury stock, at cost   Total Hitachi, Ltd. stockholders’ equity

2,942,281

2,735,078

Non-controlling interests

1,354,061

1,390,492  Total Equity

4,296,342

4,125,570¥12,433,727¥12,551,005    Total Liabilities and Equity

65Financial Section

Consolidated Statements of Profit or Loss
Hitachi, Ltd. and Subsidiaries
Years ended March 31, 2016 and 2015

Millions of yen

2015

2016

Revenues¥ 9,774,930¥10,034,305

Cost of sales(7,198,232)(7,459,073)

2,576,698

2,575,232(1,935,373)(1,940,363)

Gross profit
Selling, general and administrative expenses

641,325

634,869

Other income

Adjusted operating income

9,415

57,539Other expenses(167,781)(141,881)

Financial income

7,727

10,615

Financial expenses(3,284)(30,295)

Share of profits of investments accounted for using the equity method
EBIT (Earnings before interest and taxes)
Interest income
Interest charges

46,657156

534,059

531,003

12,52912,028(27,594)(25,991)

518,994

517,040(122,075)(165,206)

396,919

351,834(53,501)(57,081)¥  343,418¥   294,753

Hitachi, Ltd. stockholders

217,482

172,155

Non-controlling interests

125,936

122,598

Income from continuing operations, before income taxes
Income taxes
Income from continuing operations
Loss from discontinued operations
Net income
Net income attributable to:66

Hitachi, Ltd. | Integrated Report 2016

Consolidated Statements of Comprehensive Income
Hitachi, Ltd. and Subsidiaries
Years ended March 31, 2016 and 2015

Millions of yen

2015

2016

¥343,418¥   294,753

Net changes in financial assets measured at fair value through OCI

57,957(50,323)

Remeasurements of defined benefit plans

27,039(140,844)

Share of OCI of investments accounted for using the equity method

5,633(4,275)90,629(195,442)

Foreign currency translation adjustments

188,619(190,099)

Net changes in cash flow hedges(16,850)

32,785

Share of OCI of investments accounted for using the equity method(74,604)(26,239)   Total items that can be reclassified into net income

97,165(183,553)   Other comprehensive income [OCI] (loss)

187,794(378,995)¥531,212¥ (84,242)

Hitachi, Ltd. stockholders

337,578(127,557)

Non-controlling interests

193,634

43,315

Net income
Other comprehensive income (OCI)
Items not to be reclassified into net income   Total items not to be reclassified into net income
Items that can be reclassified into net income

Comprehensive income (loss)
Comprehensive income (loss) attributable to:67

Financial Section

Consolidated Statements of Changes in Equity
Hitachi, Ltd. and Subsidiaries
Years ended March 31, 2016 and 2015

Millions of yen

2015

Balance at beginning of year
 Reclassified into
retained earnings

Commonstock

CapitalsurplusRetainedearnings

Accumulated
othercomprehensive
income¥458,790¥617,496¥1,277,970¥317,547

Treasury stock,at cost¥(3,146)

Total Hitachi, Ltd.
stockholders’Non-controlling
equityinterests¥2,668,657¥1,200,174

Total
equity¥3,868,831——

37,597(37,597)

—

—

—

—

Net income——

217,482——

217,482

125,936

343,418

Other comprehensive income

—

—

—

120,096—

120,096

67,698

187,794

Cash dividends——(55,532)——(55,532)(32,578)(88,110)

Changes in treasury stock

—

3

—

—

(396)

(393)

—

(393)

 Changes in non-controllinginterests—(9,083)

—

1,054

—

(8,029)(7,169)(15,198)

Total changes in equity—(9,080)199,547

83,553(396)

273,624

153,887

427,511

Balance at end of year

¥458,790¥608,416¥1,477,517¥401,100¥(3,542)¥2,942,281¥1,354,061¥4,296,342

Millions of yen

2016

Balance at beginning of year
 Reclassified into
retained earnings

68

Commonstock

CapitalsurplusRetainedearnings

Accumulated
othercomprehensive
income¥458,790¥608,416¥1,477,517¥ 401,100

Treasury stock,at cost¥(3,542)

Total Hitachi, Ltd.
stockholders’Non-controlling
equityinterests¥2,942,281¥1,354,061

Total
equity¥4,296,342——

18,030(18,030)

—

—

—

—

Net income——

172,155——

172,155

122,598

294,753

Other comprehensive loss

—

—

—

(299,712)—(299,712)(79,283)(378,995)

Cash dividends——(57,941)——(57,941)(39,502)(97,443)

Changes in treasury stock

—

(4)

—

—

(264)

(268)

—

(268)

 Changes in non-controllinginterests—(21,622)

—

185

—

(21,437)

32,618

11,181

Total changes in equity—(21,626)

132,244(317,557)(264)(207,203)

36,431(170,772)

Balance at end of year

¥458,790¥586,790¥1,609,761¥  83,543¥(3,806)¥2,735,078¥1,390,492¥4,125,570

Hitachi, Ltd. | Integrated Report 2016

Consolidated Statements of Cash Flows
Hitachi, Ltd. and Subsidiaries
Years ended March 31, 2016 and 2015

Millions of yen

2015

2016

¥ 343,418¥ 294,753

Depreciation and amortization

481,021507,790

Change in trade receivables(201,423)(53,092)

Change in inventories(116,328)

44,342

Change in trade payables(18,041)(1,602)Other(36,822)

20,035451,825

812,226

Purchase of property, plant and equipment(358,141)(369,494)

Purchase of intangible assets(128,808)(116,438)

Purchase of leased assets(444,223)(539,420)

32,52822,632

Cash flows from operating activities
Net income
Adjustments to reconcile net income to
net cash provided by operating activities

Net cash provided by (used in) operating activities
Cash flows from investing activities Proceeds from sale of property, plant, equipment,
and intangible assets
Proceeds from sale of leased assets

27,122

23,834

Collection of lease receivables

302,899

326,497(31,226)(58,756)(12,696)(19,654)

Net cash provided by (used in) investing activities(612,545)(730,799)

Free cash flows(160,720)

81,427

Change in interest-bearing debt

343,050

110,821

Dividends paid to stockholders(55,443)(57,907)

Dividends paid to non-controlling interests(32,143)(41,671)

Other(22,258)(37,710)

Net cash provided by (used in) financing activities

233,206(26,467)

Effect of exchange rate changes on cash and cash equivalents

68,560(57,348)

Change in cash and cash equivalents

141,046(2,388)Cash and cash equivalents at beginning of year

560,657

701,703¥ 701,703¥ 699,315 Proceeds from sale (purchase) of investments in securities and other financial assets (including investments in subsidiaries
and investments accounted for using the equity method), net
Other

Cash flows from financing activities

Cash and cash equivalents at end of year

69

Financial Section

Summarized Consolidated Statements of Financial Position
by Manufacturing, Services and Others and Financial Services
Hitachi, Ltd. and Subsidiaries
March 31, 2016 and 2015
Billions of yen

2015
Manufacturing,Servicesand Others

Financial
Services¥5,115.2
654.7

2016

Total*

Manufacturing,Servicesand Others

Financial
Services

Total*¥1,184.8¥ 5,882.4¥4,995.6¥1,256.8¥ 5,872.5

119.7

701.7

660.9

157.0

699.3
2,992.7

AssetsCurrent assets   Cash and cash equivalents  Trade receivables

2,448.9695.2

2,870.0

2,472.0

710.7  Lease receivables

55.9

299.5

337.3

45.6

311.9

338.7

1,447.8

3.3

1,458.1

1,291.5

3.7

1,299.8  Inventories   Other current assets

507.7

66.9

515.1

525.3

73.3

541.8

Non-current assets

4,869.2

1,768.8

6,551.3

4,922.3

1,834.6

6,678.4  Investments accounted for using
the equity method

682.2

19.4

681.6

676.3

20.4

676.9

  Investments in securities andother financial assets

772.6

709.8

1,449.7

681.6

675.9

1,329.9  Lease receivables   Property, plant and equipment  Intangible assets   Other non-current assets

47.3

669.7

680.6

38.2

729.8

727.4

2,204.7

268.0

2,472.4

2,193.6307.5

2,500.2

873.7

59.8

933.5

1,007.7

62.6

1,070.4

288.4

41.8

333.2

324.6

38.1

373.4

¥9,984.4¥2,953.6¥12,433.7¥9,917.9¥3,091.4¥12,551.0

Current liabilities¥3,962.9¥1,270.5¥ 4,779.4¥4,095.5¥1,323.2¥ 4,994.2  Short-term debt

574.4

514.3

977.7

529.8

497.6

871.4

   Current portion of long-term debt

193.0

357.9

483.5

234.9

485.6

651.5

   Other financial liabilities

262.8

58.5

296.4

265.5

40.1

280.0

   Total Assets
Liabilities and Equity  Trade payables

1,388.5

273.0

1,426.5

1,379.0228.9

1,451.9   Other current liabilities

1,544.0

66.7

1,595.3

1,686.1

70.8

1,739.3

Non-current liabilities

2,049.6

1,346.2

3,357.9

2,038.0

1,421.1

3,431.2  Long-term debt

860.2

1,266.3

2,096.1

750.3

1,356.2

2,081.5   Other financial liabilities

77.7

42.2

117.5

85.0

28.7

115.1

   Retirement and severance benefits

717.9

6.2

724.2

774.1

9.5

783.6

   Other non-current liabilities

393.7

31.3

420.0

428.5

26.6

450.8

6,012.5

2,616.8

8,137.3

6,133.5

2,744.4

8,425.4

2,760.3

195.3

2,942.2

2,540.8

201.3

2,735.0   Total Liabilities
Hitachi, Ltd. stockholders’ equity

1,211.5

141.4

1,354.0

1,243.5

145.7

1,390.4   Total Equity

Non-controlling interests

3,971.9336.8

4,296.3

3,784.3

347.0

4,125.5    Total Liabilities and Equity¥9,984.4¥2,953.6¥12,433.7¥9,917.9¥3,091.4¥12,551.0

Interest-bearing debt

¥1,627.7¥2,138.6¥3,557.3¥1,515.0¥2,339.5¥3,604.4

27.6%

6.6%

23.7%

25.6%

6.5%

21.8%

0.41

6.35

0.83

0.40

6.74

0.87

Total Hitachi, Ltd. stockholders’equity ratio
D/E ratio (including non-controllinginterests) (times)* Total figures exclude inter-segment transactions.

70Hitachi, Ltd. | Integrated Report 2016

Summarized Consolidated Statements of Profit or Lossby Manufacturing, Services and Others and Financial Services
Hitachi, Ltd. and Subsidiaries
March 31, 2016 and 2015
Billions of yen

2015

Revenues
Adjusted operating income
EBIT
Income from continuing operations,
before income taxes
Net income attributable
to Hitachi, Ltd. stockholders

Manufacturing,Servicesand Others

Financial
Services¥9,569.8
598.5
499.9

2016

Total*

Manufacturing,Servicesand Others

Financial
Services

Total*¥356.238.9
35.4¥9,774.9
641.3
534.0

¥9,833.9
586.8
490.2

¥365.345.2
46.6¥10,034.3
634.8
531.0

485.5

35.4

518.9

476.9

46.6

517.0

206.0

14.3

217.4

152.1

19.7

172.1

* Total figures exclude inter-segment transactions.

Summarized Consolidated Statements of Cash Flowsby Manufacturing, Services and Others and Financial Services
Hitachi, Ltd. and Subsidiaries
March 31, 2016 and 2015
Billions of yen

2015

Cash flows from operating activities
Cash flows from investing activities
Free cash flows
Cash flows from financing activities
Effect of exchange rate changes
on cash and cash equivalents
Change in cash and cash equivalents
Cash and cash equivalents
at beginning of year
Cash and cash equivalents
at end of of year
Core free cash flows*2

Manufacturing,Servicesand Others

Financial
Services¥ 586.4(449.1)
137.2(69.1)

2016

Total*1

Manufacturing,Servicesand Others

Financial
Services

Total*1¥ (85.9)(191.3)(277.3)236.8¥ 451.8(612.5)(160.7)233.2¥ 843.1(518.7)324.4(262.7)¥   (7.4)(218.8)(226.2)265.4¥ 812.2(730.7)81.4(26.4)

65.1
133.2

3.4
(37.0)

68.5
141.0(55.5)
6.1

(1.8)
37.3

(57.3)
(2.3)

521.4

156.7

560.6

654.7

119.7

701.7

¥ 654.7
138.1¥ 119.7(292.1)¥ 701.7(176.4)¥ 660.9363.5¥      157.0(264.8)¥ 699.3
113.3*1 T otal figures exclude inter-segment transactions.
*2 Operating cash flows plus collection of investments in leases less cash outflows for the purchase of property, plant and equipment, intangible assets, software, andthe assets to be leased.
Note: Consolidated financial statements by Manufacturing, Services and 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 and Others segments and its Financial Services segment are each clearly positioned and managed as
distinct businesses with different characteristics. The Manufacturing, Services and 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 thebasis for growth 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 of Hitachi, Ltd. are assigned by credit rating agencies on the basis of key financial indicators that exclude
Hitachi’s financial services business.
71

Corporate Data / Stock Information
As of March 31, 2016

Corporate Name

Number of Employees

Accounting Auditor

Hitachi, Ltd. (Kabushiki Kaisha Hitachi

335,244

Ernst & Young ShinNihon LLC

Number of Shares Issued
Common Stock:

Investor Relations Contacts

URL
http://www.hitachi.com/

4,833,463,387 shares

Hitachi, Ltd.

Principal Office

Number of Shareholders

Chiyoda-ku, Tokyo 100-8280

6-6, Marunouchi 1-chome,399,597

TEL: +81-3-3258-1111

Seisakusho)JAPAN6-6, Marunouchi 1-chome,

Chiyoda-ku, Tokyo 100-8280, Japan

E-mail: IR@hdq.hitachi.co.jp
U.S.A.

FoundedAdministrator of Shareholders’Register

1910 (Incorporated in 1920)

Tokyo Securities Transfer Agent

50 Prospect Avenue,

Co., Ltd.

Capital Stock

Tarrytown, NY 10591

6th Floor, Kanda Nishiki-cho Building,

458,790 million yen

TEL: +1-914-333-2987

3-11, Kanda Nishiki-cho 3-chome,

E-mail: investor.info@hal.hitachi.com

Chiyoda-ku, Tokyo 101-0054, Japan

U.K.

Hitachi America, Ltd.

Hitachi Europe Ltd.

Stock Exchange Listings

Whitebrook Park,Tokyo, Nagoya

Lower Cookham Road,
Maidenhead, Berkshire SL6 8YA
TEL: +44-1628-585714

10 Largest Shareholders
Number of Shares(shares)

Percentage of Total(%)

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

294,474,000

6.09

Japan Trustee Services Bank, Ltd. (Trust Account)282,694,415

5.85

Hitachi Employees’ Shareholding Association

99,633,384

2.06

Nippon Life Insurance Company

93,265,195

1.93Japan Trustee Services Bank, Ltd. (Trust Account 9)76,826,000

1.59

THE BANK OF NEW YORK MELLON SA/NV 10

73,447,113

1.52

STATE STREET BANK WEST CLIENT-TREATY 505234

71,729,327

1.48

The Dai-ichi Life Insurance Company, Limited*

71,361,222

1.48

STATE STREET BANK AND TRUST COMPANY 505225

68,111,932

1.41Japan Trustee Services Bank, Ltd. (Trust Account 7)

67,288,000

1.39

Name

* T he number of shares held by The Dai-ichi Life Insurance Company, Limited includes its contribution of 6,560,000 shares to the retirement allowance trust (the holder of said shares, as
listed in the Shareholders’ Register, is “Dai-ichi Life Insurance Account, Retirement Allowance Trust, Mizuho Trust & Banking Co., Ltd.”).

Ratings
Rating Company

72

Long-term

Short-term

Moody’s Japan K.K. (Moody‘s)

A3

P-2

Standard & Poor’s Rating Japan (S&P)

A-

A-2

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

A+

a-1

Hitachi, Ltd. | Integrated Report 2016

Government andMunicipality
0.00%

Shareholder Composition
Number of
Shareholders

Share Ownership(shares)409

1,606,323,857

394,280

1,204,843,496

Foreign Investor

1,259

1,923,591,176

Other

3,645

98,658,290

446,568399,597

4,833,463,387

Class of Shareholders

Financial Institution and Securities Firm
IndividualGovernment and Municipality
Total

Other
2.04%

Financial Institution
and Securities Firm
33.23%

Shareholder
Composition

4,833,463,387
ForeignInvestor
39.80%

Individual
24.93%* Treasury stock is included in “Other.”

Stock Price and Trading Volume
Hitachi Stock Price

Nikkei Stock Average (225)

Trading Volume (1,000 shares)

150

2,400,000

125

2,000,000

100

1,600,000

75

1,200,000

50

800,000

25

400,00000Year ended
March 31, 2007

Year ended
March 31, 2008

Year ended
March 31, 2009

Year ended
March 31, 2010

Year ended
March 31, 2011

Year ended
March 31, 2012

Year ended
March 31, 2013

Year ended
March 31, 2014

Year ended
March 31, 2015

Year ended
March 31, 2016

858

High (Yen)

936

947

843

404

523

547

578

877

939.9

Low (Yen)

644

569

230

227

313

360

401

508

660

431

Price at endof March

914

591

266

349

433

531

543

762

823.2

526.6

* The closing price on March 31, 2006 equals 100.

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

Investor Relations

CSR (Corporate Social Responsibility)

http://www.hitachi.co.jp/about/corporate/index.
html#hitachi_corporate(Japanese)

http://www.hitachi.co.jp/IR/index.html#hitachi_ir(Japanese)

http://www.hitachi.co.jp/csr/index.html#hitachi_csr(Japanese)

http://www.hitachi.com/IR-e/index.html(English)http://www.hitachi.com/csr/(English)http://www.hitachi.com/corporate/about/index.html(English)73