FOR IMMEDIATE RELEASE

Hitachi Announces Consolidated Financial Results for Fiscal 2011
Tokyo, May 10, 2012 --- Hitachi, Ltd. (TSE:6501) today announced its consolidated
financial results for fiscal 2011, ended March 31, 2012.
Notes: 1. All figures were converted at the rate of 82 yen to the U.S. dollar, the approximate exchange
rate on the Tokyo Foreign Exchange Market as of March 30, 2012.
2. Operating income is presented in accordance with financial reporting principles andpractices generally accepted in Japan.

- more --2-Summary
In millions of yen and U.S. dollars, except Net income attributable to Hitachi, Ltd. stockholders per share (6)and Net income attributable to Hitachi, Ltd. stockholders per American Depositary Share (7).

The years ended March 31
Yen(B)/(A)(millions)(%)
2011 (A)2012(B)
1. Revenues

U.S. Dollars(millions)2012

9,315,807

9,665,883

104

117,877

2. Operating income

444,508

412,280

93

5,028

3. Income before income taxes

432,201

557,730

129

6,802

4. Net income

303,126

412,808

136

5,034

5. Net income attributable to
Hitachi, Ltd.

238,869

347,179

145

4,234

52.89
49.38

76.81
71.86

145
146

0.94
0.88

529
494

768
719

145
146

9.37
8.77

6. Net income attributable to
Hitachi, Ltd. stockholders per share
Basic
Diluted7. Net income attributable to
Hitachi, Ltd. stockholders per ADS(representing 10 shares)
Basic
DilutedNotes: 1. The Company's consolidated financial statements are prepared based on U.S.GAAPs.
Notes: 2. Operating income is presented in accordance with financial reporting principles and practices generally accepted in Japan.
Notes: 3. The figures are for 939 consolidated subsidiaries, including Variable Interst Entities, and 183 equity-method affiliates.
Notes: 3. Consolidated trust accounts are not included into the number of consolidated subsidiaries.

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1. Qualitative Information Concerning Consolidated Business Results
1-1. Summary of Fiscal 2011 Consolidated Business Results(1) Business Results
Year ended March 31, 2012
Yen
(billions)Year over yearchange(% or billions yen)

U.S. dollars(millions)

9,665.8

4%

117,877

Operating income

412.2(32.2)

5,028

Income before income taxes

557.7

125.5

6,802

Net income

412.8

109.6

5,034

Net income attributable to Hitachi, Ltd.

347.1

108.3

4,234

Revenues

In fiscal 2011, the year ended March 31, 2012, there was continued stagnation in
the global economy. In industrialized countries, the economic slowdown can be
attributed primarily to uncertainty surrounding government finances in Europe,
lackluster personal spending in the U.S. as well as other factors. Emerging countries
also experienced an economic slowdown due to declining exports and accelerating
inflation. In fiscal 2011, natural disasters also had a significant impact on the global
economy. The Great East Japan Earthquake and flooding in Thailand impacted
production of electronic components and other products, causing disruptions in the
supply chain particularly in the automotive and electronics fields.
The Japanese economy experienced stagnation in production activity as well as alarge drop-off in internal demand in the wake of the Great East Japan Earthquake.
However, the economy moved into a recovery phase in the second half of the fiscal
year thanks to public works spending on reconstruction efforts, increased
investment in housing and other factors.
Hitachi’s consolidated revenues for fiscal 2011 increased 4% year over year, to9,665.8 billion yen, despite lower revenues in the Digital Media & Consumer
Products, Components & Devices and Financial Services segments due to lower
demand and other factors. Hitachi achieved higher revenues in the Others Segment,
resulting from Hitachi Transport System, Ltd. making Vantec Corporation a
consolidated subsidiary in April 2011, among other factors. The Information &Telecommunication Systems Segment also experienced strong revenue growth,
notably in services, while the Automotive Systems Segment produced higher
revenues year over year as a result of global recovery due to increased demand forautomobiles.
Hitachi posted operating income of 412.2 billion yen, down 32.2 billion yen year overyear, even though some segments including the Financial Services, Construction
Machinery, Automotive Systems, and Electronic Systems & Equipment segments
posted higher year over year earnings. In part, the overall result reflected lower
earnings in the Power Systems Segment due to additional expenses and delays
related to difficulties experienced with some boiler materials in overseas thermal
power generation systems projects. The overall financial results also reflected lower- more --4-

earnings in the Digital Media & Consumer Products Segment mainly attributable tolower revenues and the impact of the floods in Thailand.
Hitachi posted net other income of 145.4 billion yen, a 157.7 billion yen improvementfrom fiscal 2010 when net other deductions were recorded. Despite recording
exchange losses resulting from the yen’s appreciation, the overall improvement
primarily reflected the recording of a net gain on the sale of marketable securities
from the transfer of Hitachi’s hard disk drive business to Western Digital
Corporation.
As a result, Hitachi recorded income before income taxes of 557.7 billion yen, an
improvement of 125.5 billion yen year over year.
After deducting income taxes of 144.9 billion yen, Hitachi posted net income of
412.8 billion yen, a year over year increase of 109.6 billion yen. After deducting net
income attributable to noncontrolling interests of 65.6 billion yen, Hitachi posted
record-high net income attributable to Hitachi, Ltd. for the second straight year of
347.1 billion yen, a year over year increase of 108.3 billion yen.
(2) Revenues and Operating income (loss) by Segment
Results by segment were as follows.
[Information & Telecommunication Systems]
Year ended March 31, 2012
Yen
(billions)
Revenues
Operating income

Year over yearchange(% or billions yen)

U.S. dollars(millions)

1,764.2

7%21,515

101.7

3.0

1,241

For fiscal 2011, the segment recorded revenues of 1,764.2 billion yen, an increaseof 7% year over year. The higher overall revenues resulted mainly from increased
sales for services in Japan, as well as higher sales in storage solutions andconsulting overseas.
Segment operating income increased 3.0 billion yen year over year, to 101.7 billion
yen, mainly due to improved hardware profitability.

- more --5-[Power Systems]
Year ended March 31, 2012
Yen
(billions)Year over yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

832.4

2%

10,151

Operating loss

(33.9)(56.0)(414)

For fiscal 2011, segment revenues increased 2% year over year, to 832.4 billion yen.
This increase was mainly attributable to steady growth in the thermal power
generation systems business in Japan, despite a decline in nuclear power
generation systems sales due to the impact of the Great East Japan Earthquake.
The segment recorded an operating loss of 33.9 billion yen, a change of 56.0 billion
yen from operating income in the previous fiscal year. This deterioration primarilyreflected additional expenses and delays related to difficulties experienced withsome boiler materials in overseas thermal power generation systems projects.
[Social Infrastructure & Industrial Systems]
Year ended March 31, 2012
Yen
(billions)
Revenues
Operating income

Year over yearchange(% or billions yen)

U.S. dollars(millions)

1,204.9

4%

14,695

49.1

9.2

600

For fiscal 2011, segment revenues increased 4% year over year, to 1,204.9 billion
yen. The overall increase mainly reflected steady growth in the elevator andescalator business overseas, in addition to a recovery in plant-related equipment
and construction from the impact of the Great East Japan Earthquake.
Segment operating income increased 9.2 billion yen year over year, to 49.1 billion
yen, mainly due to higher sales from plant-related equipment and construction andthe elevator and escalator business, as well as progress relative to cost reduction
measures.

- more --6-[Electronic Systems & Equipment]
Year ended March 31, 2012
Yen
(billions)
Revenues
Operating income

Year over yearchange(% or billions yen)

U.S. dollars(millions)

1,101.7

2%

13,436

49.9

12.7

610

For fiscal 2011, the segment recorded revenues of 1,101.7 billion yen, a 2%
increase year over year, despite lower sales of electronic component processing
equipment and other products. The higher segment revenues are mainly attributable
to Hitachi Medical Corporation's consolidation of Aloka Co., Ltd. in January 2011.
Segment operating income rose 12.7 billion yen year over year, to 49.9 billion yen.
This mainly reflected higher earnings at Hitachi Kokusai Electric Inc. due to progresswith structural reforms.
[Construction Machinery]
Year ended March 31, 2012
Yen
(billions)Year over yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

798.7

6%

9,741

Operating income

63.1

13.9

770

For fiscal 2011, segment revenues were 798.7 billion yen, up 6% year over year,
despite a decline in demand for hydraulic excavator in China and financial
uncertainty in the European markets. The overall increase reflected efforts tocapture reconstruction-related demand in Japan, as well as strong sales of mining
machinery and service parts in Asia and Oceania.
Segment operating income rose 13.9 billion yen year over year, to 63.1 billion yen,despite the impact of the strong yen. The overall increase were mainly attributable toa revision in sales prices and progress with cost reductions in addition to increase insales and expansion of services and conponents-related sales.

- more --7-[High Functional Materials & Components]
Year ended March 31, 2012
Yen
(billions)
Revenues
Operating income

Year over yearchange(% or billions yen)

U.S. dollars(millions)

1,437.1

2%

17,527

77.0

(7.4)

939

For fiscal 2011, segment revenues increased 2% year over year, to 1,437.1 billion
yen. This increase reflected higher sales recorded by Hitachi Metals, Ltd., mainly for
automotive-related products. This sales growth was partly offset by lower sales at
Hitachi Chemical Co., Ltd., primarily due to decreased demand for semiconductors
and LCD TVs as well as the impacts of both the Great East Japan Earthquake andflooding in Thailand.
Segment operating income decreased 7.4 billion yen year over year, to 77.0 billion
yen. This decrease was mainly the result of a decline in earnings at Hitachi
Chemical due to lower sales and the impacts of the Great East Japan Earthquake
and flooding in Thailand. This was despite improved earnings at Hitachi Cable, Ltd.
as a result of progress made on structural reforms, in addition to higher earnings at
Hitachi Metals in line with increased sales.
[Automotive Systems]
Year ended March 31, 2012
Yen
(billions)Year over yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

811.5

10%

9,897

Operating income

37.0

13.2

452

For fiscal 2011, segment revenues increased 10% year over year, to 811.5 billion
yen, primarily reflecting a recovery in global demand for automobiles, including
increased demand in emerging markets.
Segment operating income was 37.0 billion yen, a year over year increase of 13.2
billion yen. Growth was driven mainly by realizing the benefits of cost reductions andimproved capacity utilization associated with the recovery in demand.
Note:

Effective from April 1, 2011, there was a change in segmentation between the Automotive
Systems and the Components & Devices segments. Figures for each segment, including
figures for year over year comparisons, reflect the changed segmentations.

- more --8-[Components & Devices]Year ended March 31, 2012
Yen
(billions)Year over yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

768.0

(5%)

9,367

Operating income

39.4

(9.9)

481

For fiscal 2011, segment revenues decreased 5% year over year, to 768.0 billion
yen. This result was mainly due to a year over year decline in sales of small andmedium-sized displays, as well as lower sales of HDDs due to restrictions on partsprocurement stemming from the impact of the Great East Japan Earthquake and theflooding in Thailand.
Segment operating income decreased 9.9 billion yen year over year, to 39.4 billion
yen, mainly reflecting lower sales of HDDs.
Notes 1: Effective from April 1, 2011, there was a change in segmentation between the Automotive
Systems and the Components & Devices segments. Figures for each segment, including
figures for year over year comparisons, reflect the changed segmentations.
2: HDD operations were conducted by Hitachi Global Storage Technologies (Hitachi GST),
which had a December 31 fiscal year-end, different from Hitachi’s March 31 year-end.
Hitachi’s results for the fiscal year ended March 31, 2012 include operating results of Hitachi
GST for the fiscal year ended December 31, 2011.

[Digital Media & Consumer Products]
Year ended March 31, 2012
Yen
(billions)Year over yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

858.8

(10%)

10,474

Operating loss

(10.9)(25.8)(134)

For fiscal 2011, the segment recorded a 10% decrease in revenues year over year, to858.8 billion yen. This decline was mainly the result of the impact of flooding in
Thailand and falling prices on optical disk drive-related products, as well as
decreased demand and lower prices for flat-panel TVs.
The segment recorded an operating loss of 10.9 billion yen, a change of 25.8 billion
yen from operating income in the previous fiscal year. This deterioration was mainly
due to a decline in sales of flat-panel TVs and optical disk drive-related products.
Note:

The optical disk drive operations are conducted by Hitachi-LG Data Storage, Inc. (HLDS),
which has a December 31 fiscal year-end, different from Hitachi’s March 31 year-end.
Hitachi’s results for the fiscal year ended March 31, 2012 include operating results of HLDS
for the fiscal year ended December 31, 2011.

- more --9-[Financial Services]Year ended March 31, 2012
Yen
(billions)Year over yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

353.2

(5%)

4,307

Operating income

30.2

15.9

369

For fiscal 2011, the segment reported a 5% year over year decrease in revenues, to353.2 billion yen. The overall decline mainly reflected lower revenues in the financeservices business for corporate customers in Japan at Hitachi Capital Corporation.
However, the overseas business at Hitachi Capital performed strongly mainly in
Asia.
Segment operating income increased 15.9 billion yen year over year, to 30.2 billion
yen, despite lower revenues, mainly as a result of lower fund management costs.
[Others]
Year ended March 31, 2012
Yen
(billions)Year over yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

951.6

24%

11,606

Operating income

33.2

4.3

405

For fiscal 2011, segment revenues increased 24% year over year, to 951.6 billion yen,mainly due to healthy growth in third-party logistics solutions as well as the April 2011
consolidation of Vantec Corporation at Hitachi Transport System, Ltd.
Segment operating income increased 4.3 billion yen year over year, to 33.2 billion yen,mainly as a result of the consolidation of Vantec at Hitachi Transport System.
(3) Revenues by Market
Year ended March 31, 2012
Yen
(billions)Year over yearchangeU.S. dollars(millions)Japan

5,534.4

5%

67,493

Outside Japan

4,131.4

2%50,383Asia

2,000.9(4%)

24,402

North America

869.0

11%

10,598Europe

761.1

0%

9,282

Other Areas

500.2

16%

6,101

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Revenues in Japan were 5,534.4 billion yen, up 5% year over year. The Others
Segment posted much higher revenues due to the consolidation of Vantec
Corporation at Hitachi Transport System, Ltd. and strong sales growth in third-party
logistics solutions. In addition, the Information & Telecommunication Systems,
Power Systems and Construction Machinery segments recorded higher revenues,
promptly recovering from damages caused by the Great East Japan Earthquake
and capturing reconstruction-related demand. The overall increase in revenues inJapan came despite lower revenues in the Components & Devices Segment, which
was affected by the Great East Japan Earthquake and floods in Thailand, and lower
year over year revenues in some segments including the Digital Media & Consumer
Products and Financial Services segments.
Outside Japan revenues increased 2%, to 4,131.4 billion yen. In addition to higher
revenues in the Automotive Systems Segment following recovery in global demand
for automobiles, this overall increase was attributable to higher revenues in the
Information & Telecommunication Systems Segment, where storage systems
generated strong sales, especially in North America. The overall increase camedespite lower year over year revenues in the Digital Media & Consumer Products
Segment, where the flooding in Thailand had an impact, and in the Power Systems
Segment, where there were delays with overseas projects.
As a result, the ratio of overseas revenues to consolidated revenues was 43%, thesame as in fiscal 2010.
(4) Capital Expenditures, Depreciation and R&D Expenditures
Capital expenditures on a completion basis, excluding leasing assets, increased
38% year over year, to 377.2 billion yen, due to investment for increasing production
prompted by the recovery in demand, and investments for restoring production
facilities damaged by the Great East Japan Earthquake.
Depreciation, excluding leasing assets, decreased 8% year over year, to 280.2
billion yen, primarily due to strict selection of capital investments through the end of
fiscal 2010.
R&D expenditures increased 4% year over year, to 412.5 billion yen, whichcorresponded to 4.3% of consolidated revenues. The increase was due mainly tofurther R&D investment to strengthen the Social Innovation Business.

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(5) Outlook for Fiscal 2012
Year ending March 31, 2013
Yen
(billions)
Revenues

Year over yearchange(% or billions yen)

U.S. dollars(millions)9,100.0(6%)

121,333

Operating income

480.0

67.7

6,400

Income before income taxes

420.0(137.7)5,600

Net income

295.0(117.8)3,933

Net income attributable to Hitachi, Ltd.

200.0(147.1)

2,667

Note: All fiscal 2012 outlook figures were converted using 75 yen to the U.S. dollar.

In terms of the overall business environment going forward, the Chinese economy isexpected to maintain a high rate of growth due to robust demand from the inlandparts of China which still have room for growth, even though the economic
slowdwon is expected in the coastal areas due to lower exports resulting from theEuropean economic slowdown and other factors. Southeast Asian countries, India,
Brazil and certain other countries are expected to maintain steady growth in general.
Emerging economies are therefore expected to continue to be the drivers of growthin the world economy. Regarding industrialized countries, there are concerns that
fiscal crises in some countries will be worse, with credit worries in Europe stillunresolved. Various governments are expected to promote fiscal austerity policies
and economic sluggishness will continue. On the other hand, the manufacturingindustry in the U.S. is making a comeback on the back of a weak greenback. Withan improving unemployment rate and other positive signs emerging, the U.S.
economy has been maitaining gradual recovery.
Japan’s economy should continue to see a recovery in supply chains affected by theGreat East Japan Earthquake and the floods in Thailand. Demand associated withreconstruction after the Great East Japan Earthquake, including housing investment,
private-sector capital expenditures and public works, should drive GDP and support
a moderate economic recovery.
Due to these economic conditions, at present, Hitachi is forecasting the results
shown above for fiscal 2012, the year ending March 31, 2013.
Hitachi aims to establish itself as a major global player as it works to achieve thegoals of its 2012 Mid-term Management Plan. Among other actions, the Company
will accelerate global development of the Social Innovation Business and promote
the Hitachi Smart Transformation Project, a project for overhauling cost structures,
across the Hitachi Group.
Projections for fiscal 2012 assume an exchange rate of 75 yen to the U.S. dollar and
100 yen to the euro.

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1-2. Financial Position(1) Financial Position
As of March 31, 2012
Yen
(billions)

Change fromMarch 31, 2011

U.S. dollars(millions)

Total assets

9,418.5

232.8

114,860

Total liabilities

6,644.5(99.7)

81,031

Interest-bearing debt

2,396.4(125.0)29,225

Total Hitachi, Ltd. stockholders’ equity

1,771.7

331.9

21,607

Noncontrolling interests

1,002.2

0.6

12,222

Total Hitachi, Ltd. stockholders’ equity ratio

18.8%

3.1 point improvement-

D/E ratio (including noncontrolling interests)

0.86times

0.17 point improvement-

Total assets as of March 31, 2012 increased 232.8 billion yen, to 9,418.5 billion yen,
due to increase in trade receivables and inventories mainly related to the Social
Innovation Business. Interest-bearing debt decreased 125.0 billion yen from March 31,
2011, to 2,396.4 billion yen, mainly due to repayment of short-term debt tapping into
the consideration for the transfer of hard disk drive business. Stockholders’ equity
increased 331.9 billion yen, to 1,771.7 billion yen, due to the net income attributable to
Hitachi, Ltd. As a result, the total Hitachi, Ltd. stockholders’ equity ratio was 18.8%.
The debt-to-equity ratio, including noncontrolling interests, was 0.86.
(2) Cash Flows
Year ended March 31, 2012
Yen
(billions)Year over yearchange(billions yen)

U.S. dollars(millions)

Cash flows from operating activities

447.1(394.3)

5,453

Cash flows from investing activities(195.5)64.7(2,385)

Free cash flows

251.5(329.6)

3,068

Cash flows from financing activities(167.8)416.3(2,047)

Operating activities provided net cash of 447.1 billion yen, a 394.3 billion yen
decrease year over year. This decrease mainly reflected increase in tradereceivables and inventories, despite the increase in net income.
Investing activities used net cash of 195.5 billion yen, 64.7 billion yen less than in
the previous fiscal year, due to the sale of the HDD operations and other factors.
Free cash flows, the sum of cash flows from operating and investing activities, was apositive 251.5 billion yen, a decline of 329.6 billion yen year over year.
Financing activities used net cash of 167.8 billion yen, 416.3 billion yen less year
over year due to decreased repayment of debt.

- more -- 13 -The net result of the above items was a 64.7 billion yen increase in cash and cash
equivalents of 619.5 billion yen.
(3) Trends in Cash Flow IndexesYear ended
March 31,2010

Year ended
March 31,2011

Year ended
March 31,2012

Hitachi, Ltd. stockholders’ equity ratio (%)

14.3

15.7

18.8

Equity ratio based on market value (%)

17.4

21.3

26.1

Cash flow to interest-bearing debt ratio

3.0

3.0

5.4

Interest coverage ratio (times)

30.4

33.8

15.9

(a) Hitachi, Ltd. stockholder’s equity ratio: Total Hitachi, Ltd. shareholders’ equity / Total assets(b) Equity ratio based on market value: Market capitalization / Total assets(c) Cash flow to interest-bearing debt ratio: Interest-bearing debt / Cash flows from operating
activities(d) Interest coverage ratio: Cash flows from operating activities / Interest charges
Note:

Market capitalization is computed based on the number of issued shares, excluding treasury
stock.

1-3. Basic Policy on the Distribution of Earnings and Fiscal 2011 and 2012
Dividends
Hitachi views enhancement of the long-term and overall interests of shareholders as
an important management objective.
The industrial sector encompassing energy, information systems, social
infrastructure and other primary businesses of Hitachi is undergoing rapid
technological innovation and changes in market structure. This makes vigorous
upfront investment in R&D and plant and equipment essential for securing andmaintaining market competitiveness and improving profitability. Dividends are
therefore decided based on medium- to long-term business plans with an eye on
ensuring the availability of internal funds for reinvestment and the stable growth of
dividends, with appropriate consideration of a range of factors, including Hitachi’sfinancial condition, results of operations and dividend payout ratio.
Hitachi believes that the repurchase of its shares should be undertaken, whennecessary, as part of its policy on distribution to shareholders to complement thedividend payout. In addition, Hitachi will repurchase its own shares on an ongoingbasis in order to implement a flexible capital strategy, including businessrestructuring, to maximize shareholder value so far as consistent with the dividend
policy. Such action will be taken by Hitachi after considering its future capitalrequirement under its business plans, market conditions and other relevant factors.
Based on the above policies, Hitachi plans to pay an annual dividend of 8 yen per
share for fiscal 2011. Dividends for fiscal 2012 have yet to be determined.

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Cautionary Statement
Certain statements found in this document may constitute “forward-looking statements” asdefined 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 andare subject to various risks and uncertainties that could cause actual results to differ materiallyfrom 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 be accurate. 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 from historical trends include, but are not limited to:•

economic conditions, including consumer spending and plant and equipment 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, theinformation, electronics, automotive, construction and financial sectors;•

exchange rate fluctuations of the yen against other currencies in which 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;•

the potential for significant losses on Hitachi’s investments in equity method affiliates;•

increased commoditization of information technology products and digital media-related
products and intensifying price competition for such products, particularly in the DigitalMedia & Consumer Products segments;•

uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate
new technologies on a timely and cost-effective basis and to achieve market acceptance forsuch products;•

rapid technological innovation;•

the possibility of cost fluctuations during the lifetime of, or cancellation of, long-term contracts
for which Hitachi uses the percentage-of-completion method to recognize revenue from sales;•

fluctuations in the price of raw materials including, without limitation, petroleum and othermaterials, 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 to reduce the potential negative
impact of fluctuations in product demand, exchange rates and/or price of raw materials or
shortages of materials, parts and components;•

uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy tostrengthen its Social Innovation Business;•

uncertainty as to the success of restructuring efforts to improve management efficiency bydivesting or otherwise exiting underperforming businesses and to strengthen competitivenessand other cost reduction measures;•

general socioeconomic and political conditions and the regulatory and trade environment ofcountries where Hitachi conducts business, particularly Japan, Asia, the United States andEurope, including, without limitation, direct or indirect restrictions by other nations on imports- more -- 15 -and differences in commercial and business 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 other corporations 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 the Company, its subsidiaries or its equity method affiliates havebecome or may become parties;•

the possibility of incurring expenses resulting from any defects in products or services ofHitachi;•the possibility of disruption of Hitachi’s operations by earthquakes, tsunamis or other natural
disasters;•

uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as
Hitachi’s ability to protect its confidential information or that of its customers;•

uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate 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 to other factors contained in othermaterials published by Hitachi.

- more -- 16 -

2. Management Policy(1) Basic Management Policy
Amid intensifying competition in world markets, the Hitachi Group has been
expanding its business through development of Hitachi and its related companies(subsidiaries and affiliated companies). Hitachi aims to improve its development by
delivering competitive products and services imbuing higher value for customers. By
taking full advantage of the diverse resources of the Hitachi Group while at the sametime reviewing and restructuring businesses, Hitachi will bolster its competitiveness.
This process will be consistent with Hitachi’s basic management policy, which is toincrease shareholder value by meeting the expectations of customers, shareholders,
employees and other stakeholders.
(2) Medium- and Long-term Management Strategy
The Hitachi Group will work to drive growth through the Social Innovation Businessand establish an even more solid financial base. This will involve capitalizing fully on
the Hitachi Group’s business base built up over the years to promote threethemes---transforming into a truly global company; expanding environmental
businesses; and fusing social infrastructure and IT. The Social Innovation Businessincludes information and telecommunication systems, power systems, industrial andtransportation systems, and social and urban systems, as well as the sophisticatedmaterials and key devices that support them.
(3) Challenges Facing Hitachi Group
While the forecast of the management environment remains uncertain, the HitachiGroup will promote the following measures in order to further improve profitability
and achieve future growth as Hitachi works to become a top global company.
・ In order to respond to increasing global demand for safe, secure, and highly
economical social infrastructures, Hitachi will promote the Social Innovation
Business globally. Hitachi will further strengthen the Social Innovation Businessthrough the integration of IT with social infrastructure by collaboratively
operating highly related businesses and establishing cross-functionalorganization.
・ In order to achieve global growth, Hitachi will enhance our local functions,employing strategies carefully tailored to the needs of their respective regions.
Hitachi will also work to cultivate and recruit human capital that can be utilized
globally, throughout the Hitachi Group. Hitachi will dedicate its efforts inparticular to China, Asia, and other areas for which high levels of growth are
expected, creating and expanding businesses.
・ In order to achieve cost competitiveness that will be advantageous in global
markets, Hitachi will promote cost reductions by thoroughly overhauling its cost
structure across the Group including procurement, production and administrative
operations.
・ Hitachi will continue to strengthen the financial position by striving to improve the
cash flow through reducing costs, as well as thoroughly implementing measures- more -- 17 -

such as inventory management and reduction of working capital.
・ By continuing to strive to ensure the quality of the products and services Hitachi
provides to customers, Hitachi will further gain the trust of society in the HitachiGroup, and increase the value of the Hitachi brand.
・ Hitachi will combine various strengths of the Hitachi Group to promote measuresdirected at recovering from the Great East Japan Earthquake, such as bycontributing to the creation of sustainable, disaster-resistant cities. At the sametime, Hitachi will utilize such experience to contribute to the development ofsocial infrastructures worldwide.
・ Hitachi will contribute to stable supplies of energy around the world by striving toprovide even safer nuclear power generation systems.
・ Hitachi will intensify the focus on “Basics and Ethics” in order to eliminate
misconducts within the Hitachi Group, and strive to contribute to theenvironment and to communities.

- more -- 18 -

Consolidated Statements of Operations
The years ended March 31
Yen(B)/(A)(millions)(%)
2011 (A)2012 (B)U.S. Dollars(millions)
2012

Revenues

9,315,807

9,665,883

104

117,877

Cost of sales

6,967,433

7,278,971

104

88,768Selling, general andadministrative expenses

1,903,866

1,974,632

104

24,081

Operating income

444,508

412,280

93

5,028

87,237

247,110

283

3,014

(Interest and dividends)

17,507

18,204

104

222(Other)69,730228,906

328

2,792

99,544

101,660

102

1,240

(Interest charges)

24,87828,141

113

343(Other)74,66673,51998

897

Income before income taxes

432,201

557,730

129

6,802

Income taxes

129,075

144,922

112

1,767

Net income

303,126

412,808

136

5,034

Less: Net income attributable tononcontrolling interests

64,25765,629102

800

Net income attributable to
Hitachi, Ltd.

238,869

347,179

145

4,234

Other income

Other deductions- more -- 19 -

Consolidated Balance Sheets
Yen(millions)(B)-(A)

U.S. Dollars(millions)

As of March 31,

As of March 31,

2011(A)

2012(B)

Total Assets
Current assets
Cash and cash equivalents
Short-term investments
Trade receivables
Notes
Accounts
Investments in leases
Current portion of financial assets transferred
to consolidated securitization entities
Inventories
Other current assets
Investments and advances
Property, plant and equipment
Intangible assets
Financial assets transferred toconsolidated securitization entities
Other assets

9,185,629
4,900,029
554,810
16,5989,418,526
5,162,186
619,577
11,562

232,897
262,157
64,767(5,036)

114,860
62,9537,556
141

100,694
1,990,225
228,346

117,951
2,225,519
235,744

17,257235,294
7,398

1,438
27,1402,875

183,559
1,341,768
484,029
614,145
2,111,270
528,018

86,071
1,413,252
452,510744,4932,025,538
609,962(97,488)
71,484(31,519)
130,348(85,732)
81,944

1,050
17,235
5,518
9,079
24,702
7,439

304,160
728,007

205,411
670,936(98,749)(57,071)

2,505
8,182

Total Liabilities and Equity
Current liabilities
Short-term debt and current portionof long-term debt
Current portion of non-recourse borrowingsof consolidated securitization entities
Trade payables
Notes
Accounts
Advances received
Other current liabilities
Noncurrent liabilities
Long-term debt
Non-recourse borrowings of consolidated
securitization entities
Retirement and severance benefits
Other liabilities
Total equity
Total Hitachi, Ltd. stockholders' equity
Common stock
Capital surplus
Legal reserve and retained earnings
Accumulated other comprehensive loss
(Foreign currency translation adjustments)(Pension liability adjustments)(Net unrealized holding gain on
available-for-sale securities)(Cash flow hedges)
Treasury stock
Noncontrolling interests

9,185,629
4,088,824

9,418,526
4,110,873

232,897
22,049114,860
50,133810,806

915,556

104,750

11,165

190,868

97,004(93,864)

1,183

20,4301,236,758
395,605
1,434,357
2,655,416
1,300,311

24,0251,301,759
362,895
1,409,634
2,533,658
1,248,851

3,595
65,001(32,710)(24,723)(121,758)(51,460)

293
15,875
4,426
17,19130,89815,230219,566
891,815
243,724
2,441,389
1,439,865
409,129
603,133
922,036(493,062)(252,206)(256,566)

135,043
890,977
258,787
2,773,995
1,771,782
427,775
600,243
1,242,110(496,896)(220,615)(294,252)(84,523)(838)
15,063332,606
331,917
18,646(2,890)320,074(3,834)
31,591(37,686)

1,647
10,866
3,156
33,82921,607
5,217
7,320
15,148(6,060)(2,690)(3,588)16,905(1,195)(1,371)1,001,524

20,491(2,520)(1,450)1,002,213

3,586(1,325)
(79)
689

250
(31)
(18)
12,222- more -As of March 31,

2012- 20 -

Consolidated Statements of Stockholders' Equity

2011

The years ended March 31
Yen
U.S. Dollars(millions)(millions)
2012
2012

Hitachi, Ltd. stockholders' equity
Common stock
Balance at beginning of year
Conversion of convertible bonds
Balance at end of year

408,810319
409,129

409,129
18,646
427,775

4,989
227
5,217

Capital surplus
Balance at beginning of year
Conversion of convertible bonds
Sales of treasury stock
Equity transactions and other
Balance at end of year

620,577319(9,534)(8,229)603,133

603,133
18,646(9)(21,527)
600,243

7,355
227
(0)
(263)
7,320

713,479

922,036

11,244Retained earnings
Balance at beginning of year
Effect on retained earnings of consolidation of securitization
entities upon initial adoption of new accounting guidances
Net income attributable to Hitachi, Ltd.
Cash dividends
Balance at end of year

(7,732)--

238,869(22,580)922,036

347,179(27,105)
1,242,110

4,234
(331)
15,148

Accumulated other comprehensive loss
Balance at beginning of year
Current-period change
Balance at end of year

(432,057)(61,005)(493,062)(493,062)(3,834)(496,896)(6,013)(47)(6,060)Treasury stock
Balance at beginning of year
Current-period change
Balance at end of year

(26,151)
24,780(1,371)(1,371)(79)(1,450)

(17)
(1)
(18)

1,439,865

1,771,782

21,607983,187

1,001,524

12,214

Total Hitachi, Ltd. stockholders' equity
Noncontrolling interest
Balance at beginning of year
Effect on retained earnings of consolidation of securitization
entities upon initial adoption of new accounting guidances
Net income attributable to noncontrolling interests
Dividends to noncontrolling interests
Equity transactions and other
Balance at end of year

(7,210)--64,257(20,184)(18,526)
1,001,524

65,629(22,293)(42,647)
1,002,213

800
(272)
(520)
12,222

Total equity

2,441,389

2,773,995

33,829303,126

412,808

5,034(87,379)
16,076

23,462(44,149)

286
(538)

(5,352)

2,962

36

1,988
(74,667)
228,459(2,502)(20,227)
392,581

(31)
(247)
4,788

Comprehensive income
Net income
Other comprehensive loss arising during the year:
Foreign currency translation adjustments
Pension liability adjustments
Net unrealized holding gain (loss) on available-for-salesecurities
Cash flow hedges
Total other comprehensive loss arising during the year
Comprehensive income- more -- 21 -

Consolidated Statements of Cash FlowsThe years ended March 31
Yen
U.S. Dollars(millions)(millions)
2011
2012
2012
Cash flows from operating activities
Net income

303,126

412,808

5,034

Depreciation

382,732

360,358

4,395

Amortization

115,037

119,308

1,455

Adjustments to reconcile net income to net cash
provided by operating activities

Net gain on sale of investments in securities and other(72,987)(228,115)(2,782)

Decrease (increase) in receivables

121,606(259,211)(3,161)

Increase in inventories(171,275)(162,594)(1,983)

Increase in payables

47,512

119,177

1,453

Other

115,80385,424

1,042

841,554447,155

5,453

Purchase of property, plant and equipment, net(227,033)(289,805)(3,534)Purchase of intangible assets, net(95,500)(106,042)(1,293)Purchase of tangible assets and software to be leased, net

Net cash provided by operating activities
Cash flows from investing activities(248,580)(251,903)(3,072)

Proceeds from sale of investments in securities
and shares of consolidated subsidiaries resulting indeconsolidation, net

25,386

179,594

2,190

Collection of investments in leases

286,356

244,446

2,981

(975)

28,126343(260,346)(195,584)(2,385)Other
Net cash used in investing activities
Cash flows from financing activities
Decrease in interest-bearing debt

(535,469)(85,745)(1,046)

Dividends paid to stockholders(22,466)(27,018)(329)

Dividends paid to noncontrolling interests(19,575)(22,206)

(271)

Other

(6,666)(32,869)(401)(584,176)(167,838)(2,047)

Effect of consolidation of securitization entities upon initialadoption of new accounting guidances

12,030--Effect of exchange rate changes on cash and cash equivalents(31,836)(18,966)(231)

Net increase (decrease) in cash and cash equivalents(22,774)

64,767790

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

577,584
554,810554,810619,577

6,766
7,556

Net cash used in financing activities- more -- 22 -

Segment Information(1) Business Segments

Information & Telecommunication
Systems
Power Systems
Social Infrastructure &Industrial Systems
Electronic Systems & Equipment
Construction Machinery
High Functional Materials &Components
Automotive Systems
Revenues
Components & Devices
Digital Media & Consumer
Products
Financial Services
OthersSubtotal
Eliminations & Corporate items
Total

The years ended March 31
Yen(B)/(A)(millions)2011 (A)2012 (B)(%)
1,652,040
1,764,247
107
16%
16%
813,207
832,4081028%
8%
1,156,936
1,204,975
104
11%
11%
1,079,355
1,101,784
102
10%
10%
751,387
798,7851067%
7%1,408,153
1,437,186
102
13%
13%
737,901
811,5831107%
8%808,235
768,065958%
7%951,596
858,845909%
8%372,981353,204
95
4%
3%
767,463951,688124
7%
9%10,499,254
10,882,770
104
100%
100%

U.S. Dollars(millions)2012
21,515
10,151
14,695
13,436
9,741
17,5279,897
9,367
10,474
4,307
11,606
132,717(1,183,447)(1,216,887)-(14,840)

9,315,807

9,665,883

104

117,877- more -- 23 -

Information & Telecommunication
Systems
Power Systems
Social Infrastructure &Industrial Systems
Electronic Systems & Equipment
Construction Machinery
High Functional Materials &Components
Operatingincome(loss)

Automotive Systems
Components & Devices
Digital Media & Consumer
Products
Financial Services
OthersSubtotal
Eliminations & Corporate items
Total

The years ended March 31
Yen(B)/(A)(millions)2011 (A)2012 (B)(%)
98,641
101,732
103
21%
23%
22,022(33,986)
5%(8%)
39,952
49,181123
9%
11%37,28449,995134
8%
11%49,192
63,129128
11%
14%84,50677,00791
18%
18%
23,79137,049156
5%
9%49,43539,48180
11%
9%
14,949(10,947)
3%(2%)
14,25530,222212
3%
7%28,93033,240115
6%
8%462,957
436,103
94
100%
100%

U.S. Dollars(millions)
2012
1,241
(414)
600
610
770
939
452
481
(134)
369
405
5,318

(18,449)(23,823)-(291)

444,508

412,28093

5,028

Notes: 1. Revenues by business segment include intersegment transactions.
Note : 2. Effective from April 1, 2011, there was a change in segmentation between the Automotive Systems and the Components & Devices
segments. Figures for each segment, including figures for the previous fiscal year, reflect the changed segmentations.

- more -- 24 -

(2) Revenues by Market

Japan
Asia
North America
EuropeOther Areas
Outside Japan
Total

The years ended March 31
Yen(B)/(A)(millions)2011 (A)2012 (B)(%)
5,269,259
5,534,462
105
57%
57%
2,073,756
2,000,989
96
22%
21%
781,139
869,014111
8%
9%760,011761,1251008%8%431,642500,293116
5%
5%4,046,548
4,131,421
102
43%
43%
9,315,807
9,665,883
104
100%
100%

- more -U.S. Dollars(millions)2012
67,493
24,402
10,5989,282
6,101
50,383
117,877

- 25 -Per Share Information
The years ended March 31
2011

2012

2012

(Yen)

(Yen)

(U.S.Dollars)

318.73382.26

4.66

Basic

52.89

76.81

0.94

Diluted

49.38

71.86

0.88

Hitachi, Ltd. stockholders' equity per share
Net income attributable to Hitachi, Ltd.
stockholders per share

The reconciliations of the numbers and the amounts used in the basic and diluted
net income attributable to Hitachi, Ltd. stockholders per share computations are as follows:
The years ended March 31

Weighted average number of shares on whichbasic net income per share is calculated

2011

2012

2012

(Number of shares)(Number of shares)

4,515,932,415

4,520,117,309

315,249,850

310,772,267

4,831,182,265

4,830,889,576(Millions of yen)

(Millions of yen)

(Millions of U.S. dollars)

238,869

347,179

4,234

(296)

(12)

(0)

238,573

347,167

4,234

Effect of dilutive securities:
130% call option attached unsecured convertible
bonds (8th series)
Number of shares on which diluted net income
per share is calculated

Net income attributable to Hitachi, Ltd.
stockholders
Effect of dilutive securities:
Other
Net income attributable to Hitachi, Ltd.
stockholders on which diluted net income pershare is calculated- more -- 26 -

Unconsolidated Financial Statements Summary
Income Statements

2011(A)The years ended March 31
Yen(B)/(A)(millions)(%)
2012(B)

U.S. Dollars(millions)
2012

Revenues

1,795,306

1,870,475

104

22,811

Cost of sales

1,308,866

1,415,426

108

17,261Gross Profit
Selling, general andadministrative expenses
Operating income

486,439455,048

94

5,549

453,322437,179

96

5,331

33,117

17,86954

218

Other income

123,449

75,55661

921

Other deductions

29,00244,502

153

543

Ordinary income

127,564

48,92338

597

Extraordinary gain

10,944

280,135-

3,416

Extraordinary loss

95,62069,98873854

42,888259,070

604

3,159

Current income taxes(21,747)

2,157

-

26

Deferred income taxes

360

2,364

656

29

64,276

254,549

396

3,104

Basic EPS (yen and dollars)

14.23

56.31

396

0.69

Diluted EPS (yen and dollars)

13.32

52.70

396

0.64

Income before income taxes

Net income

Balance Sheets
Yen(millions)
As of March 31,
As of March 31,
2011(A)
2012(B)
1,171,849
1,290,992

119,143

U.S. Dollars(millions)
As of March 31,
2012
15,744(Quick assets)

970,177

1,087,824

117,647

13,266(Inventories)

201,672

198,128(3,543)

2,416

Current assets(Deferred tax assets)
Fixed assets(Investments)(B)-(A)

0

5,039

5,039

61

1,974,488

2,040,596

66,10824,885

1,667,573

1,707,783

40,20920,827(Others)

306,914332,81325,898

4,059

Total assets

3,146,337

3,331,589

185,252

40,629Current liabilities

1,584,185

1,592,737

8,552

19,424

Fixed liabilities

621,111526,652(94,458)

6,423(Debentures)

229,360

192,068(37,292)

2,342(Long-term loans)

279,000

220,000(59,000)

2,683(Deferred tax liabilities)

12,62921,8089,178

266(Others)

100,121

92,776(7,344)

1,131

Total liabilities

2,205,296

2,119,390(85,906)

25,846

941,041

1,212,199

271,158

14,783

3,146,337

3,331,589

185,252

40,629Net assets
Liabilities and net assets- more -- 27 -

May 10, 2012
Hitachi, Ltd.

Supplementary Information for the Year ended March 31, 2012
1. Summary(1)Consolidated Basis
Fiscal 2012(Forecast)Fiscal 2010

Fiscal 2011

Six months
ending September 30(B)

Revenues*1
Operating income*1
Percentage of revenues
Income before
income taxes*1

9,315.8444.5
4.8

9,665.8
412.2
4.3

104%
93%
-

4,300.0
150.0
3.5

94%
88%
-

9,100.0
480.0
5.3

94%
116%
-

432.2

557.7

129%

120.0

90%

420.0

75%

*1

303.1

412.8

136%

70.0

90%

295.0

71%

238.8

347.1

145%

30.0

59%

200.0

58%

15.1

10.4

-

-

-

-

-

86

79

-

75

-

75

-

(7.3)

(9.9)

-

-

-

-

-

Net income
Net income attributable
to Hitachi, Ltd.*1
Dividend payout ratio(%)
Average exchange rate(yen / U.S.$)Net interestand dividends*1*1(B)/(A)(C)/six months
ended Sep. 30,
2011

(A)

(C)

Billions of yen

As of
As of
March 31, 2011 March 31, 2012
Cash & cash equivalents,
Short-term investments(billions of yen)

571.4

631.1

2,521.5

2,396.4

1.03

0.86

Number of employees
Japan
Overseas361,745
216,393
145,352

323,540
212,302111,238

Number of consolidated
subsidiaries (Including
Variable interest entities)

913

939

351
562

340
599

Interest-bearing debt
(billions of yen)
D/E Ratio(Including Noncontrollinginterests) (times)

Japan
Overseas(2)Unconsolidated Basis
Fiscal 2010
Revenues*1
Operating income*1
Ordinary income*1
Net income*1
Average exchange rate(yen / U.S.$)

Fiscal 2011

(A)

(B)

1,795.3
33.1
127.5
64.2

1,870.4
17.8
48.9
254.5

(B)/(A)

104%
54%
38%
396%

86

81

-

As of
As of
March 31, 2011 March 31, 2012
Cash & cash equivalents,
Short-term investments(billions of yen)

34.0

85.6

Interest-bearing debt
(billions of yen)

645.6

515.2

Number of employees

32,92632,908- more -(D)(D)/(B)- 28 -

2. Consolidated Revenues by Business Segment
Fiscal 2010*2

Information &Telecommunication Systems(Billions of yen)
(Reference)*3,4

Fiscal 2011*2

(A)

(B)

1,652.0

1,764.2

Fiscal2011*3,4

Fiscal 2012(Forecast)
Six months ending September 30(D)/six months
ended Sep. 30,
2011

(C)

(D)

107%

1,764.2

800.0

100%

1,760.0100%(B)/(A)(E)(E)/(C)

813.2

832.4

102%

832.4

450.0

121%

840.0

101%

Social Infrastructure &Industrial Systems

1,156.9

1,204.9104%

1,204.9

540.0

105%

1,230.0102%

Electronic Systems & Equipment

1,079.3

1,101.7

102%

1,101.7

510.0

96%

1,120.0

102%

751.3

798.7

106%

798.7

410.0

115%

850.0

106%

Power Systems

Construction Machinery
High Functional Materials &Components

1,408.1

1,437.1102%

1,437.1

700.0

100%

1,450.0101%

Automotive Systems

737.9

811.5

110%

811.5

390.0

107%

800.0

99%

Components & Devices*3

808.2

768.0

95%

Digital Media & Consumer
Products

951.5

858.8

90%

858.8

420.0

89%

830.0

97%

Financial Services

372.9

353.2

95%

353.2

150.0

83%

320.0

91%

Others

767.4

951.6

124%

1,719.7

550.0

64%

1,150.067%

Subtotal

10,499.2

10,882.7

104%

10,882.7

4,920.096%

10,350.095%

Eliminations & Corporate items(1,183.4)(1,216.8)-(1,216.8)(620.0)-(1,250.0)

-

Total

9,315.8

9,665.8104%

9,665.8

4,300.094%

9,100.0

94%

*2
*3
*4

Effective from April 1, 2011, there was a change in segmentation between the Automotive Systems and the Components & Devices segments.
Consolidated segment figures for fiscal 2011 and fiscal 2010 reflect the changed segmentations.
The Components & Devices Segment was abolished on April 1, 2012 due to the sale of the HDD operations and other factors.
Effective from April 1, 2012, there has been a change in classifications of the Components & Devices Segment and Others Segment following the abolishment of
the Components & Devices Segment. Forecasts for fiscal 2012 show the new segment classifications, and figures for fiscal 2011using the new segment classifications are also shown for reference.

3. Consolidated Operating Income (Loss) by Business Segment
Fiscal 2010

*2

Fiscal 2011

(A)

(B)

Information &Telecommunication Systems

98.6

101.7

Power Systems

22.0

Social Infrastructure &Industrial Systems
Electronic Systems & Equipment
Construction Machinery
High Functional Materials &Components
Automotive Systems*3(Billions of yen)

(Reference)*3,4*2

Fiscal2011(B)/(A)

Fiscal 2012(Forecast)*3,4
Six months ending September 30(D)/six months
ended Sep. 30,
2011

(C)

(D)

(E)

(E)/(C)

103%

101.7

33.0

106%

120.0

118%

(33.9)-(33.9)

6.0

992%

22.0

-

39.9

49.1

123%

49.1

3.0

47%

55.0

112%

37.2

49.9

134%

49.9

11.0

52%

52.0

104%

49.1

63.1

128%

63.1

25.0

97%

82.0

130%

84.5

77.0

91%

77.0

39.0

115%

98.0

127%

23.7

37.0

156%

37.0

17.0

107%

37.0

100%

49.4

39.4

80%

Digital Media & Consumer
Products

14.9(10.9)-(10.9)

(6.0)

-

0.0

-

Financial Services

14.2

30.2

212%

30.2

13.0

92%

26.0

86%

Components & Devices

Others

28.9

33.2

115%

72.7

17.0

61%

40.0

55%

Subtotal

462.9

436.1

94%

436.1

158.0

87%

532.0

122%

Eliminations & Corporate items(18.4)(23.8)-(23.8)(8.0)-(52.0)

-

Total

444.5

412.2

93%

412.2

150.0

88%

480.0

116%

- more -- 29 -

4. Consolidated Overseas Revenues by Business Segment*2
Fiscal 2011

(Billions of yen)

Fiscal 2012(Forecast)Fiscal 2010
(A)

(B)

Information &Telecommunication Systems

393.8

434.6

110%

Power Systems

317.1

284.7

90%

Social Infrastructure &Industrial Systems

263.2

302.1

115%

Electronic Systems & Equipment

573.4

607.3

106%

Construction Machinery

584.5

591.8

101%

High Functional Materials &Components

535.0

542.5

101%

Automotive Systems

311.1

360.5

116%

Components & Devices

598.3

594.7

99%

Digital Media & Consumer
Products

440.0

369.7

84%

Financial Services

48.5

51.0

105%

Others

99.3

120.9

122%

Subtotal

4,164.9

4,260.3

102%

Eliminations & Corporate items(118.4)(128.9)-Total

4,046.5

4,131.4

102%(B)/(A)(C)

3,900.0(C)/(B)94%

5. Overseas Production (Total Revenues of Overseas Manufacturing Subsidiaries)*5

Overseas production(billions of yen)
Percentage of revenues(%)
Percentage of overseas
revenues (%)*5

Fiscal 2010
(A)

(B)

Fiscal 2011
(B)/(A)

2,487.0

2,499.8

101%

27.0

26.0

-

61.0

61.0

-

Figures in tables 5, 9, 10 and 11 represent unaudited financial information prepared by the Company for the purpose of this supplementary information.

6. Consolidated Capital Expenditure by Business Segment (Completion basis, including Leasing Assets)*2(Billions of yen)

Fiscal 2010

Fiscal 2011

Fiscal 2012(Forecast)

(A)

(B)

Information &Telecommunication Systems(B)/(A)

(C)

29.6

50.6

171%

Power Systems

10.5

27.3

259%

Social Infrastructure &Industrial Systems

17.9

24.2

135%

Electronic Systems & Equipment

13.3

22.3

168%

Construction Machinery

36.5

65.0

178%

High Functional Materials &Components

60.7

67.8

112%

Automotive Systems

18.4

38.3

208%

Components & Devices

55.5

44.7

81%

Digital Media & Consumer
Products

14.7

20.4

139%

282.5

256.2

91%

Others

33.9

40.6

120%

Subtotal

573.9

658.1

115%

Eliminations & Corporate items(17.0)

(8.9)

-

Total

Financial Services(C)/(B)

556.8

649.2

117%

772.0

119%

Internal use Assets

273.1

377.2

138%

442.0

117%

Leasing Assets

283.7

271.9

96%

330.0

121%

- more -- 30 -

7. Consolidated Depreciation by Business Segment*2
Fiscal 2010

(Billions of yen)

Fiscal 2011

Fiscal 2012(Forecast)

(A)

(B)

Information &Telecommunication Systems

35.5

33.2

94%

Power Systems

17.8

17.1

96%

Social Infrastructure &Industrial Systems

21.0

20.5

97%

Electronic Systems & Equipment

13.2

11.8

90%

Construction Machinery

35.2

35.0

99%

High Functional Materials &Components

68.8

62.8

91%

Automotive Systems

27.4

25.8

94%

Components & Devices

53.1

44.1

83%

Digital Media & Consumer
Products

20.3

19.0

93%

Financial Services

58.8

58.1

99%

Others

27.1

29.8

110%

Subtotal

378.7

357.6

94%

3.9

2.6

67%

382.7

360.3

94%

328.0

91%

303.6

280.2

92%

250.0

89%

79.1

80.1

101%

78.0

97%

Eliminations & Corporate items
Total
Internal use Assets
Leasing Assets(B)/(A)(C)

8. Consolidated R&D Expenditure by Business Segment*2
Fiscal 2010

Fiscal 2011

(C)/(B)(Billions of yen)

Fiscal 2012(Forecast)

(A)

(B)

Information &Telecommunication Systems

79.5

87.9

111%

Power Systems

16.4

16.5

101%

Social Infrastructure &Industrial Systems

21.5

22.5

105%

Electronic Systems & Equipment

45.1

47.3

105%

Construction Machinery

15.8

16.4

104%

High Functional Materials &Components

46.7

46.1

99%

Automotive Systems

46.4

52.8

114%

Components & Devices

72.9

70.1

96%

Digital Media & Consumer
Products

23.8

23.6

100%

Financial Services

0.2

0.3

145%

Others

4.9

4.5

93%

21.6

24.0

111%

395.1

412.5

104%

350.0

85%

4.2

4.3

-

3.8

-

Corporate items
Total
Percentage of revenues (%)(B)/(A)(C)- more -(C)/(B)

- 31 -

9. Consolidated Balance Sheets by Financial and Non-Financial Services*5(Billions of yen)

As of March 31, 2011
Manufacturing,Servicesand Others

Current assets
Cash and cash equivalents
Trade receivables

As of March31, 2012

Financial
Services

Total*6

Manufacturing,Servicesand Others

Financial
Services

Total*6

4,302.1

940.0

4,900.0

4,593.2

1,023.1

5,162.1

533.6

108.8

554.8

589.0

142.0

619.5

1,770.8483.4

2,090.9

1,999.5593.5

2,343.4

Investments in leases

82.6

171.2

228.3

86.6

169.6

235.7

Current portion of financial assets transferred toconsolidated securitization entities

58.2

125.3

183.5

5.6

80.3

86.0

1,341.8

0.2

1,341.7

1,413.2

0.0

1,413.2

514.9

50.9

500.6

499.0

37.3

464.0

Inventories
OthersInvestments and advances

605.6

43.2

614.1

685.4

92.0

744.4

1,920.1

193.4

2,111.2

1,828.4

198.4

2,025.5

-

304.1

304.1

-

205.4

205.4

Other assets

849.8

456.7

1,256.0

887.6

431.6

1,280.8

Total Assets

7,677.7

1,937.6

9,185.6

7,994.7

1,950.6

9,418.5

Current liabilities

3,505.8926.8

4,088.8

3,576.1

991.1

4,110.8

Short-term debt and current portion of long-term debt

605.2

347.4

810.8

615.2

491.6

915.5

Current portion of non-recourse borrowings ofconsolidated securitization entities

21.8

169.0

190.8

5.6

91.3

97.0

Trade payables

1,182.3

224.7

1,257.1

1,284.0

269.9

1,325.7

Others

1,696.4

185.6

1,829.9

1,671.1

138.1

1,772.5

886.5

484.3

1,300.3

801.9

501.9

1,248.8

-

219.5

219.5

-

135.0

135.0

Other noncurrent liabilities

1,075.0

64.8

1,135.5

1,089.4

65.6

1,149.7

Total Liabilities

5,467.4

1,695.5

6,744.2

5,467.6

1,693.8

6,644.5

Total Hitachi, Ltd. stockholders' equity

1,308.9

142.8

1,439.8

1,635.8

146.6

1,771.7

901.3

99.1

1,001.5

891.3

110.2

1,002.2

Total Equity

2,210.3

242.0

2,441.3

2,527.1

256.8

2,773.9

Total Liabilities and Equity

7,677.7

1,937.6

9,185.6

7,994.7

1,950.6

9,418.5

Interest-bearing debt

1,513.6

1,220.3

2,521.5

1,422.8

1,220.0

2,396.4

D/E ratio (including noncontrolling interests)

0.68

5.04

1.03

0.56

4.75

0.86

Total Hitachi, Ltd. stockholders’ equity ratio

17.0%

7.4%

15.7%

20.5%

7.5%

18.8%

Property, plant and equipment
Financial assets transferred to consolidated securitization
entities

Long-term debt
Non-recourse borrowings of consolidated securitization
entities

Noncontrolling interests*6

Total Figures exclude inter-segment transactions.

- more -- 32 -

10. Consolidated Statements of Operations by Financial and Non-Financial Services*5(Billions of yen)

Fiscal 2010
Manufacturing,Servicesand Others

Fiscal 2011

Financial
Services

Total*6

Manufacturing,Servicesand Others

9,112.6372.9

9,315.8

Operating income

431.7

14.2

Income before income taxes

419.7

Net income attributable to Hitachi, Ltd.

236.3

Revenues

Financial
Services

Total*6

9,457.4

353.2

9,665.8

444.5

383.8

30.2

412.2

13.9

432.2

529.0

29.6

557.7

4.2

238.8

341.0

7.7

347.1

11. Consolidated Statements of Cash Flows by Financial and Non-Financial Services*5(Billions of yen)
Fiscal 2011

Fiscal 2010
Manufacturing,Servicesand Others

Financial
Services

Total*6

Manufacturing,Servicesand Others

Financial
Services

Total*6

Cash flows from operating activities

671.5

190.9

841.5

442.7

17.8

447.1

Cash flows from investing activities(399.9)126.9(260.3)(229.6)

14.4(195.5)

Cash flows from financing activities(255.3)(434.2)(584.1)(138.6)0.7(167.8)

-

12.0

12.0

-

-

-

(31.6)(0.1)(31.8)(19.1)

0.1(18.9)Net increase (decrease) in cash and cash equivalents(15.5)(104.4)(22.7)

55.4

33.2

64.7

Cash and cash equivalents at beginning of year

549.1

213.3

577.5

533.6

108.8

554.8

Cash and cash equivalents at end of year

533.6

108.8

554.8

589.0

142.0

619.5

Effect of consolidation of securitization entities upon initialadoption of new accounting guidances
Effect of exchange rate changes on cash and cash
equivalents- more -- 33 -

12. Information & Telecommunication Systems*7(1)Revenues and Operating Income
Fiscal 2010

Revenues
Software & Services
SoftwareServices
Hardware
Storage*8Servers*9
PCs*10
Telecommunication
OthersOperating income
Software & Services
Hardware
*7
*8
*9
*10

(Billions of yen)
Fiscal 2012 (Forecast)Fiscal 2011

(A)

(B)

1,652.0
1,119.7
159.4
960.2
532.3
184.9
49.6
29.5
135.6
132.5
98.6
85.8
12.7

1,764.2
1,222.2
171.0
1,051.2
542.0
193.0
51.5
32.3
140.9
124.0
101.7
86.2
15.4

Total

Six months ending September 30(B)/(A)

107%
109%
107%
109%
102%
104%
104%
109%
104%
94%
103%
100%
121%

(C)

(C)/six months
ended Sep. 30,
2011

(D)

(D)/(B)

800.0
560.0

100%
101%

1,760.0
1,240.0

100%
101%

240.0

98%

520.0

96%

33.0

106%

120.0
101.0
19.0

118%
117%
124%

Figures for each product exclude intra-segment transactions.
Figures for Storage include disk array systems, etc.
Figures for Servers include general-purpose computers, UNIX servers, etc.
Figures for PCs include PC servers, client PCs (only commercial use), etc.

(2)Storage Solutions(Billions of yen)
Fiscal 2010

Revenues

Fiscal 2012 (Forecast)Fiscal 2011

(A)

(B)

322.0

351.0

Total

Six months ending September 30(B)/(A)

109%

(C)

167.0

(C)/six months
ended Sep. 30,
2011

100%

(D)

355.0

(D)/(B)101%

13. Hard Disk Drives*11,12
Period recorded forconsolidated accounting
purposes

OperatingincomeBillions of
yen

526.8

460.8

87%

Millions of
U.S. $

6,003

5,773

96%

Billions of
yen

57.2

36.8

64%

Millions of
U.S.$

645

464

72%

113,800
65,30034,000
7,400
3,530
3,460

104,700
61,10028,600
9,800
2,190
2,930

92%
94%
84%
131%
62%
85%

2.5-inch
3.5-inchServers
Emerging
External HDD
*11

*12
*13

(B)/(A)(B)
Jan. 2011
to Dec. 2011

Shipments (thousand units)
Consumer andCommercial(A)

Fiscal 2011

Jan. 2010
to Dec. 2010

Shipment Period

Revenues

Fiscal 2010*13

The hard disk drive operations were conducted by Hitachi Global Storage Technologies (Hitachi GST), which had a December 31 fiscal year-end,different from Hitachi's March 31 year-end. Hitachi's results for the fiscal year ended March 31, 2012 include the operating results ofHitachi GST for the year ended December 31, 2011.
Hitachi GST's operating currency is U.S. dollar. Yen figures include yen / dollar conversion fluctuation.
Shipment less than 100,000 units have been rounded, with the exception of Emerging and External HDD, where shipment less than 10,000 units have beenrounded.

###