[Translation]

Quarterly Report(The Third Quarter of 155th Business Term)
From October 1, 2023 to December 31, 2023

6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo

Hitachi, Ltd.

[Cover][Document Filed]

Quarterly Report (“Shihanki Hokokusho”)[Applicable Law]

Article 24-4-7, Paragraph 1 of the Financial Instruments and Exchange Act of Japan[Filed with]

Director, Kanto Local Finance Bureau[Filing Date]

February 9, 2024

[Fiscal Year]

The Third Quarter of 155th Business Term (from October 1, 2023 to December 31, 2023)[Company Name]

Kabushiki Kaisha Hitachi Seisakusho[Company Name in English]

Hitachi, Ltd.

[Title and Name of Representative]

Keiji Kojima, President & CEO[Address of Head Office]6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo[Phone No.]

03-3258-1111[Contact Person]

Yuki Fukutani, Manager, Legal Division[Contact Address]

6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo[Phone No.]

03-3258-1111[Contact Person]

Yuki Fukutani, Manager, Legal Division[Place Where Available for Public
Inspection]

Tokyo Stock Exchange, Inc.
(2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)
Nagoya Stock Exchange, Inc.
(8-20, Sakae 3-chome, Naka-ku, Nagoya)

This is an English translation of the Quarterly Report filed with the Director of the Kanto Local Finance Bureau via Electronic
Disclosure for Investors’ NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan.
The translation of the Confirmation Letter for the original Quarterly Report is included at the end of this document.
Unless the context indicates otherwise, the term “Company” refers to Hitachi, Ltd. and the term “Hitachi” refers to the Company
and its consolidated subsidiaries.
Unless otherwise stated, in this document, where we present information in millions or hundreds of millions of yen, we havetruncated amounts of less than one million or one hundred million, as the case may be. Accordingly, the total of figures presented incolumns or otherwise may not equal the total of the individual items. We have rounded all percentages to the nearest percent, onetenth of one percent or one-hundredth of one percent, as the case may be.
References in this document to the “Financial Instruments and Exchange Act” are to the Financial Instruments and Exchange Act
of Japan and other laws and regulations amending and/or supplementing the Financial Instruments and Exchange Act of Japan.

Contents
Part I Information on the Company ………………………………………………………………………………………………
1
I. Overview of the Company ……………………………………………………………………………………………………
1
1. Key Financial Data ………………………………………………………………………………………………………
1
2. Description of Business ……………………………………………………………………………………………………
2
II. Business Overview …………………………………………………………………………………………………………
4
1. Risk Factors ………………………………………………………………………………………………………………
4
2. Management’s Discussion and Analysis of Consolidated Financial Condition, Results of Operations and Cash Flows …
5
3. Material Agreements, etc. ………………………………………………………………………………………………… 10
III. Information on the Company ……………………………………………………………………………………………… 11
1. Information on the Company’s Stock, etc. ……………………………………………………………………………… 11(1) Total number of shares, etc. …………………………………………………………………………………………… 11(2) Information on the stock acquisition rights, etc. ……………………………………………………………………… 11(3) Information on moving strike convertible bonds, etc. ………………………………………………………………… 11(4) Changes in the total number of issued shares and the amount of common stock and other ………………………… 11(5) Major shareholders …………………………………………………………………………………………………… 11(6) Information on voting rights ………………………………………………………………………………………… 12
2. Changes in Senior Management ………………………………………………………………………………………… 13
IV. Financial Information ……………………………………………………………………………………………………… 14
Part II Information on Guarantors, etc. for the Company ………………………………………………………………………… 14[Condensed Quarterly Consolidated Financial Statements] ……………………………………………………………………… F1[Confirmation Letter] ……………………………………………………………………………………………………………… A1

Part I Information on the Company
I. Overview of the Company
1. Key Financial Data
Consolidated financial data, etc.
(Millions of yen, unless otherwise stated)
Nine months ended
December 31, 2022

Nine months ended
December 31, 2023

Year ended
March 31, 2023

8,108,796

7,218,154[2,692,017][2,258,085]

Income before income taxes

456,819642,107

Net income attributable to Hitachi, Ltd.

292,232

445,092

stockholders[119,717][235,989]

Comprehensive income attributable to Hitachi,Ltd. stockholders

481,233

587,227

905,819

Total Hitachi, Ltd. stockholders’ equity

4,524,170

5,278,664

4,942,854

Total equity

5,170,596

5,423,393

5,335,567

Total assets

13,281,006

12,073,212

12,501,414

Earnings per share attributable to Hitachi, Ltd.

306.99478.24stockholders, basic (yen)[127.48][254.77]

Earnings per share attributable to Hitachi, Ltd.
stockholders, diluted (yen)306.66477.69683.89Total Hitachi, Ltd. stockholders’ equity ratio (%)

34.1

43.7

39.5

Net cash provided by (used in) operating
activities

380,090542,865

827,045

Net cash provided by (used in) investing
activities(145,277)(172,003)

151,063

Net cash provided by (used in) financing
activities(260,857)(375,760)(1,142,966)

Cash and cash equivalents at end of period

959,299

864,301

833,283

Revenues

10,881,150
819,971649,124684.55(Notes) 1. Hitachi's consolidated financial statements have been prepared in conformity with the International Financial ReportingStandards (“IFRS”) as issued by the International Accounting Standards Board.
2. The figures of “Revenues,” “Net income attributable to Hitachi, Ltd. stockholders” and “Earnings per share attributable
to Hitachi, Ltd. stockholders, basic” in square bracket are those for the three months ended December 31, 2022 and2023, respectively.

12. Description of Business
There were no material changes in principal businesses of Hitachi during the nine months ended December 31, 2023. The
Hitachi Group is comprised of the Company, 575 consolidated subsidiaries, and 370 equity-method associates and joint-ventures.
Effective from April 1, 2023, the Company abolished Hitachi Construction Machinery segment and Hitachi Metals segment
and discloses its business in five segments: three sectors as “Digital Systems & Services,” “Green Energy & Mobility” and“Connective Industries,” Automotive Systems, and Others.
Major business and the positioning of principal affiliated companies for each segment and changes in Business Unit (BU) of theCompany and principal affiliated companies during the nine months ended December 31, 2023 were as follows.
(As of December 31, 2023)
Segments
Main products and services
BU and principal affiliated companies
Digital Systems &・Digital Solutions (System Integration,[BU]
Services
Consulting, Cloud Services)
Financial Institutions BU
・IT Products (Storage, Servers)
Social Infrastructure Systems BU
・Software
Cloud Services Platforms BU (Note 2)
・ATMs
Digital Engineering BU (Note 2)

Green Energy &Mobility

Connective Industries

Automotive Systems

・Energy Solutions (Power Grids, Renewable
Energy, Nuclear)
・Railway Systems

・Building Systems (Elevators, Escalators)
・Smart Life & Ecofriendly Systems (HomeAppliances, Air Conditioners)
・Measurement and Analysis Systems(Semiconductor Manufacturing Equipment,
Clinical Analyzers)
・Industry & Distribution Solutions
・Water & Environment Solutions
・Industrial Machinery[Consolidated subsidiaries]
Hitachi Information & Telecommunication
Engineering, Ltd.
Hitachi Channel Solutions Corp.
Hitachi Solutions, Ltd.
Hitachi Systems, Ltd.
GlobalLogic Worldwide Holding, Inc.
Hitachi Computer Products (America), Inc.
Hitachi Digital LLC
Hitachi Payment Services Private Limited
Hitachi Vantara LLC[BU] (Note 3)
Power Grids BU
Nuclear Energy BU
Railway Systems BU[Consolidated subsidiaries]
Hitachi-GE Nuclear Energy, Ltd.
Hitachi Plant Construction, Ltd.
Hitachi Power Semiconductor Device, Ltd.
Hitachi Power Solutions Co., Ltd.
Hitachi Energy Ltd
Hitachi Rail Ltd.
[BU]
Building Systems BU
Industrial Digital BU
Water & Environment BU[Consolidated subsidiaries]
Hitachi Building Systems Co., Ltd.
Hitachi Global Life Solutions, Inc.
Hitachi High-Tech Corporation
Hitachi Industrial Equipment Systems Co., Ltd.
Hitachi Industrial Products, Ltd.
Hitachi Industry & Control Solutions, Ltd.
Hitachi Plant Services Co., Ltd.
Hitachi Elevator (China) Co., Ltd.
Hitachi Global Air Power US, LLC (Note 4)
Hitachi Industrial Holdings Americas, Inc.
JR Technology Group, LLC[Equity-method associates]
Hitachi Kokusai Electric Inc.
Arcelik Hitachi Home Appliances B.V.
Johnson Controls-Hitachi Air Conditioning
Holding (UK) Ltd[Consolidated subsidiaries]－ (Note 5)・Powertrain
・Chassis
・Advanced Driver Assistance・Motorcycle Systems

2

(As of December 31, 2023)
Segments
Main products and services
BU and principal affiliated companies
Others・Property Management[Consolidated subsidiaries]
・Others
Hitachi-LG Data Storage, Inc.
Hitachi Real Estate Partners, Ltd.
Hitachi America, Ltd.
Hitachi Asia Ltd.
Hitachi (China), Ltd.
Hitachi Europe Ltd.
Hitachi India Pvt. Ltd.
(Notes) 1. Hitachi America, Ltd., Hitachi Asia Ltd., Hitachi (China), Ltd., Hitachi Europe Ltd. and Hitachi India Pvt. Ltd. are the
Hitachi Group’s regional supervising company for Americas, Asia, China, Europe and India, and they sell the HitachiGroup’s products.
2. Services & Platforms BU belonging to Digital Systems & Services segment was reorganized as Cloud Services Platforms
BU on April 1, 2023. Digital Engineering BU was established in Digital Systems & Services segment on April 1, 2023.
3. Energy BU belonging to Green Energy & Mobility segment was abolished on April 1,2023.
4. Sullair, LLC changed its name to Hitachi Global Air Power US, LLC on April 12, 2023.
5. Hitachi Astemo, Ltd. and Hitachi Astemo Americas, Inc. ceased to be consolidated subsidiaries of the Company andbecame equity-method associates of the Company due to transferring a part of its shares in Hitachi Astemo, Ltd. on
October 16, 2023. Consequently, there is no Company which belongs to the Automotive System segment since then.
6. In addition to the table above, the major equity-method associates are Hitachi Astemo, Ltd. and Hitachi Construction
Machinery Co., Ltd.

3

II. Business Overview
1. Risk Factors
There were no new risk factors recognized during the nine months ended December 31, 2023.
During the nine months ended December 31, 2023, the following is the material change in the risk factors stated in the
Annual Securities Report for the 154th business term pursuant to the Financial Instruments and Exchange Act of Japan, and therelevant change is underlined.
(Before the Change)
Rapid Technological Innovation<Text above omitted>
New technologies are rapidly emerging in the segments in which Hitachi conducts business, with the pace oftechnological innovation. The development of new and advanced technologies, the continuous, timely and cost-effective
incorporation of such technologies into products, systems and services and the effective marketing of such products, etc.
are indispensable to remaining competitive. For instance, it is important to respond to technological innovations, including
automation and electrification using technologies such as digital and robots and environmentally friendly technologies suchas decarbonization and resource circulation. While introducing such products, etc. requires significant resource
commitment to research and development, there can be no assurance that Hitachi’s research and development will be
successful. Failure in Hitachi’s endeavors to develop and incorporate such advanced technologies into products andservices in a timely manner, or to achieve market acceptance for such products, etc., may negatively affect Hitachi’sbusiness, financial condition and results of operations.
<Text below omitted>(After the Change)
Rapid Technological Innovation<Text above omitted>
New technologies are rapidly emerging in the segments in which Hitachi conducts business, with the pace oftechnological innovation. The development of new and advanced technologies, the continuous, timely and cost-effective
incorporation of such technologies into products, systems and services and the effective marketing of such products, etc.
are indispensable to remaining competitive. For instance, it is important to respond to technological innovations, including
application of generative AI to human intellectual activity, automation and electrification using technologies such as digitaland robots and environmentally friendly technologies such as decarbonization and resource circulation. While introducing
such products, etc. requires significant resource commitment to research and development, there can be no assurance that
Hitachi’s research and development will be successful. Failure in Hitachi’s endeavors to develop and incorporate such
advanced technologies into products and services in a timely manner, or to achieve market acceptance for such products,
etc., may negatively affect Hitachi’s business, financial condition and results of operations.
<Text below omitted>(Before the Change)
Sharp Decline in Demand
Oversupply in the markets in which Hitachi competes may lead to declines in sales prices, revenues and profitability.
In addition, adjustment to demand may force Hitachi to dispose of excess supply or obsolete equipment or reduce
production, which can result in losses. For example, the imbalance between supply and demand in information equipment,elevators, semiconductor and automotive equipment industries and a resultant deterioration in market conditions could
negatively affect Hitachi’s businesses, financial condition and results of operations.
<Text below omitted>(After the Change)
Sharp Decline in Demand
Oversupply in the markets in which Hitachi competes may lead to declines in sales prices, revenues and profitability.
In addition, adjustment to demand may force Hitachi to dispose of excess supply or obsolete equipment or reduce
production, which can result in losses. For example, the imbalance between supply and demand in information equipment,elevators and semiconductor industries and a resultant deterioration in market conditions could negatively affect Hitachi’sbusinesses, financial condition and results of operations.
<Text below omitted>

42. Management’s Discussion and Analysis of Consolidated Financial Condition, Results of Operations and Cash Flows(1) Analysis of Results of Operations
Results of Operations
The results of operations in the nine months ended December 31, 2023 were as follows.
Revenues decreased 11% to 7,218.1 billion yen, as compared with the nine months ended December 31, 2022, due mainly todecreased revenues owing to selling a part of shares of Hitachi Construction Machinery Co., Ltd. and selling shares of Hitachi
Metals, Ltd. (Currently Proterial, Ltd.). The decrease was partially offset by increased revenues in Green Energy & Mobility
segment including Hitachi Energy Ltd and Railway Systems business which performed well and Digital Systems & Services
segment including Lumada business which performed well.
Cost of sales decreased 13% to 5,355.4 billion yen and the ratio of cost of sales to revenues decreased 2% to 74%, ascompared with the nine months ended December 31, 2022, respectively. Gross profit decreased 6% to 1,862.7 billion yen, as
compared with the nine months ended December 31, 2022.
Selling, general and administrative expenses (“SG&A”) decreased 8% to 1,337.0 billion yen, as compared with the ninemonths ended December 31, 2022, and the ratio of SG&A to revenues increased 1% to 19% as compared with the nine months
ended December 31, 2022.
Share of profits of investments accounted for using the equity method increased 8.6 billion yen to profit of 42.6 billion yen,
as compared with the nine months ended December 31, 2022 mainly because Hitachi Construction Machinery Co., Ltd. ceased tobe the Company’s consolidated subsidiary and became its equity-method associate in August 2022.
As a result of foregoing, Adjusted EBITA (defined as Adjusted Earnings before Interest, Taxes and Amortization, andrepresenting the revenues less cost of sales as well as SG&A, adding back the amortization of intangible assets, etc. recognized
upon business combinations, and adding or deducting share of profits (losses) of investments accounted for using the equity
method) increased 7.9 billion yen to 632.2 billion yen, as compared with the nine months ended December 31, 2022.
Other income increased 48.1 billion yen to 119.7 billion yen, as compared with the nine months ended December 31, 2022,
due mainly to the gains on business reorganization by selling a part of shares of Hitachi Astemo, Ltd. despite the gains on
business reorganization by selling a part of shares of Hitachi Construction Machinery Co., Ltd. posted in the nine months ended
December 31, 2022. Other expenses decreased 96.8 billion yen to 55.4 billion yen, as compared with the nine months ended
December 31, 2022, due mainly to expenses by shifting to risk-sharing corporate pension and the impairment losses on Hitachi
Energy owing to rise in discount rate following the significant rise in interest rates posted in the nine months ended December 31,
2022.
Financial income (excluding interest income) increased 31.9 billion yen to 41.8 billion yen due mainly to the foreignexchange gain in Green Energy & Mobility segment, as compared with the nine months ended December 31, 2022. Financial
expenses (excluding interest charges) decreased 8.6 billion yen to 7.5 billion yen, as compared with the nine months ended
December 31, 2022.
Earnings before interest and taxes increased 192.5 billion yen to 667.0 billion yen, as compared with the nine months ended
December 31, 2022.
Interest income increased 12.3 billion yen to 29.9 billion yen and interest charges increased 19.5 billion yen to 54.9 billion
yen, as compared with the nine months ended December 31, 2022, respectively.
Income before income taxes increased 185.2 billion yen to 642.1 billion yen, as compared with the nine months ended
December 31, 2022.
Income taxes increased 42.6 billion yen to 165.6 billion yen, as compared with the nine months ended December 31, 2022.
Net income increased 142.6 billion to 476.5 billion yen, as compared with the nine months ended December 31, 2022.
Net income attributable to non-controlling interests decreased 10.2 billion yen to 31.4 billion yen, as compared with the ninemonths ended December 31, 2022.
As a result of the foregoing, net income attributable to Hitachi, Ltd. stockholders increased 152.8 billion yen to 445.0 billion
yen, as compared with the nine months ended December 31, 2022.
Operations by Segment
The following is an overview of results of operations by segment. Revenues for each segment include intersegment
transactions. Effective from April 1, 2023, the Company reclassified its reportable segment in seven segments: Digital Systems &Services, Green Energy & Mobility, Connective Industries, Automotive systems, Hitachi Construction Machinery, Hitachi Metals
and Others. Accordingly, the amounts previously reported for the nine months ended December 31, 2022 have been restated inconformity with the new segments.
Revenues and Adjusted EBITA for Business Management Reinforcement Division, which were previously included in Green
Energy & Mobility segment, are included in Others segment from April 1, 2023. Accordingly, the amounts previously reported
for the nine months ended December 31, 2022 have been restated in conformity with this change.
(Digital Systems & Services)
Revenues increased 9% to 1,823.2 billion yen, as compared with the nine months ended December 31, 2022, due mainly tostrong results of Lumada business and growth of GlobalLogic by harvesting the demand for DX.
Adjusted EBITA increased 33.7 billion yen to 222.0 billion yen, as compared with the nine months ended December 31,
2022, due mainly to increased revenues and promote cost reduction. The increase was partially offset by decreased profits due
mainly to continued investment in development for growth to expand business in Services & Platforms business.

5(Green Energy & Mobility)
Revenues increased 25% to 2,128.4 billion yen, as compared with the nine months ended December 31, 2022, due mainly tosales increase in Hitachi Energy Ltd by ongoing orders and sales increase in the Railway Systems business resulting from theprogress in major projects.
Adjusted EBITA increased 25.4 billion yen to 126.9 billion yen, as compared with the nine months ended December 31,
2022, due mainly to increased revenues and improved profitability in Hitachi Energy Ltd and improved profitability in Railway
Systems business resulting from the progress in major projects and better project mix. The increase was partially offset bydecreased profits resulting from an increase of cost associated with acquisition of power grids business including PMI related
costs.
(Connective Industries)
Revenues increased 2% to 2,203.8 billion yen, as compared with the nine months ended December 31, 2022, due mainly toincreased revenues in Industrial Products business and Water and Environment business. The increase was partially offset bydecreased revenues in Measurement and Analysis Systems business.
Adjusted EBITA decreased 2.9 billion yen to 224.4 billion yen, as compared with the nine months ended December 31,
2022, due mainly to decreased profits resulting from decreased revenues in Measurement and Analysis Systems business, despite
increased revenues.
(Automotive Systems)
Revenues decreased 15% to 1,164.3 billion yen, as compared with the nine months ended December 31, 2022, due mainly toconversion of Hitachi Astemo, Ltd., which was included in Automotive Systems segment, to an equity-method affiliate of theCompany from its subsidiary as a result of selling a part of shares of Hitachi Astemo, Ltd. in October 2023. The decrease waspartially offset by increased revenues resulting from moderate production recovery of automaker production and resolving
semiconductor shortage.
Adjusted EBITA increased 10.8 billion yen to 50.6 billion yen, as compared with the nine months ended December 31, 2022,
due mainly to improve profitability despite decreased revenues.
(Others)
Revenues increased 6% to 368.0 billion yen, as compared with the nine months ended December 31, 2022.
Adjusted EBITA improved 13.5 billion to 13.5 billion yen, as compared with the nine months ended December 31, 2022.
Revenues by Market
Revenues in Japan decreased 9% to 2,627.1 billion yen, as compared with the nine months ended December 31, 2022, due
mainly to decreased revenues owing to selling shares of Hitachi Metals, Ltd., a part of shares of Hitachi Construction MachineryCo., Ltd and a part of shares of Hitachi Astemo, Ltd. The decrease was partially offset by increased revenues in Digital Systems &Services segment due to steady growth in Front Business, and increased revenues in Green Energy & Mobility segment andConnective Industries segment.
Overseas revenues decreased 12% to 4,590.9 billion yen, as compared with the nine months ended December 31, 2022, due
mainly to decreased revenues owing to selling shares of Hitachi Metals, Ltd., a part of shares of Hitachi Construction MachineryCo., Ltd and a part of shares of Hitachi Astemo, Ltd. The decrease was partially offset by increased revenues in Green Energy &Mobility due to steady growth in Hitachi Energy Ltd and Railway Systems business.
As a result, the ratio of overseas revenues to total revenues decreased 1% to 64%, as compared with the nine months ended
December 31, 2022.
(2) Analysis of Financial Condition and Cash Flows
Liquidity and Capital Resources
During the nine months ended December 31, 2023, there were no major changes in the Company’s policies of maintaining
liquidity and ensuring funds, efforts for improvement in fund management efficiency, and ideas regarding funding sources andfundraising.
Cash FlowsThe following is a summary of cash flows for the nine months ended December 31, 2023.
(Cash Flows from Operating Activities)
Net cash provided by operating activities was 542.8 billion yen plus in the nine months ended December 31, 2023, and cash
increased by 162.7 billion yen compared with the nine months ended December 31, 2022. This was due mainly to an increase inquarterly income, and an increase in advances received(contract liabilities).
(Cash Flows from Investing Activities)
Net cash used in investing activities was 172.0 billion yen minus in the nine months ended December 31, 2023, and cash
decreased by 26.7 billion yen compared with the nine months ended December 31, 2022. This was due mainly to the sale ofshares of Hitachi Construction Machinery Co., Ltd. which was a consolidated subsidiary in the nine months ended December 31,
2022, despite a decrease in investments to property, plant and equipment compared with the nine months ended December 31,
2023.

6

(Cash Flows from Financing Activities)
Net cash used in financing activities was 375.7 billion yen minus in the nine months ended December 31, 2023, and cash
decreased by 114.9 billion yen compared with the nine months ended December 31, 2022. This was due mainly to a decrease in
net proceeds (difference between proceeds and expenditures) from short-term debt, despite the bond offering in the nine months
ended December 31, 2023, and the additional acquisition of Hitachi Energy shares in the nine months ended December 31, 2022.
Free cash flow (the sum of cash flows from operating and investing activities) was 370.8 billion yen plus in the nine months
ended December 31, 2023, and cash increased by 136.0 billion yen compared with the nine months ended December 31, 2022.
Core free cash flow (free cash flows excluding cash flows from M&A and assets sales, etc.) was 268.5 billion yen plus in thenine months ended December 31, 2023, and cash increased by 193.6 billion yen compared with the nine months ended December
31, 2022.
As a result of the foregoing, cash and cash equivalents as of December 31, 2023, were 864.3 billion yen, an increase of 31.0
billion yen from March 31, 2023.
Assets, Liabilities and Equity
The following is an overview of Hitachi’s assets, liabilities and equity as of December 31, 2023.
Total assets were 12,073.2 billion yen, a decrease of 428.2 billion yen from March 31, 2023, due mainly to conversion of
Hitachi Astemo, Ltd to an equity-method affiliate of the Company from its subsidiary despite increased assets resulting from theimpact of foreign exchange.
Total interest-bearing debt, the sum of short-term debt and long-term debt including current portion of long-term debt, was
1,754.5 billion yen, a decrease of 458.7 billion yen from March 31, 2023.
Total Hitachi, Ltd. stockholders’ equity increased by 335.8 billion yen from March 31, 2023, to 5,278.6 billion yen. The ratioof total Hitachi, Ltd. stockholders’ equity to total assets was 43.7%, as compared with 39.5% as of March 31, 2023.
Non-controlling interests were 144.7 billion yen, a decrease of 247.9 billion yen from March 31, 2023.
Total equity was 5,423.3 billion yen, an increase of 87.8 billion yen from March 31, 2023. The ratio of interest-bearing debt
to total equity was 0.32, as compared with 0.41 as of March 31, 2023.
(3) Management Policy
There were no material changes in Hitachi’s management policy during the nine months ended December 31, 2023.
(4) Challenges Hitachi Group Faces
1) Business and Financial Challenges Hitachi Group Faces
There were no material changes in Hitachi’s business and financial challenges during the nine months ended December 31,
2023.
2) Fundamental Policy on the Conduct of Persons Influencing Decision on the Company’s Financial and Business Policies
There were no material changes in Hitachi’s fundamental policy during the nine months ended December 31, 2023.
(5) Research and Development
There were no material changes in the research and development of the Hitachi Group (the Company and consolidated
subsidiaries) stated in the Annual Securities Report for the 154th business term pursuant to the Financial Instruments andExchange Act of Japan. The Hitachi Group’s R&D expenditures in the nine months ended December 31, 2023 were 218.0 billion
yen, 3.0% of revenues. A breakdown of R&D expenditures by segment is shown below.
(Billions of yen)Segment

Nine months ended
December 31, 2023

Digital Systems & Services

37.5

Green Energy & Mobility

44.8

Connective Industries

64.6

Automotive Systems

50.6

Others0.9

Corporate items & Eliminations

19.4

Total

218.0

7

(6) Employees
The number of employees of the Hitachi Group (the Company and consolidated subsidiaries) decreased by 60,332 persons
during the nine months ended December 31, 2023, to 262,193 persons. The decrease was due mainly to the fact that there is nocompany which belongs to the Automotive Systems segment as Hitachi Astemo, Ltd. was converted into an equity-method
associate of the Company from its subsidiary on October 16, 2023.
There were no material changes in the number of employees of the Company.
(7) Property, Plant and Equipment
The major property, plants and equipment materially changed during the nine months ended December 31, 2023 are as
follows.
Breakdown by Segment(As of December 31, 2023)
Book value (Millions of yen)Segment

Land[Area inthousands
2of m ]

Buildings
andstructures

Machineryandvehicles--Tools,
furnitureandfixtures

Right-of-use
AssetsConstructionin progress

Other

Number of
employees

Total

-

Automotive Systems(Note)

-

-

-

-

-

-

[-]

(Note) As Hitachi Astemo, Ltd. was converted into an equity-method associate of the Company from its subsidiary on October 16,
2023, there is no company which belongs to the Automotive Systems segment. Consequently, no property, plants andequipment were recorded in the segment.
Domestic subsidiaries and Overseas subsidiaries
As Hitachi Astemo, Ltd. was converted into an equity-method associate on October 16, 2023, Hitachi Astemo, Ltd., Hitachi
Astemo Electric Motor Systems, Ltd. Hitachi Astemo Hanshin, Ltd. and Hitachi Astemo Ueda, Ltd. were no longer the facilitiesof the Company’s domestic subsidiaries, and Hitachi Astemo Americas, Inc., Hitachi Astemo Mexico, S.A. de C.V. and Hitachi
Astemo Netherlands B.V. were no longer the facilities of the Company’s overseas subsidiaries.
(8) Plans for Capital Investment, Disposals of Property, Plants and Equipment, etc.
The Hitachi Group (the Company and consolidated subsidiaries) engages in diverse operations in Japan and overseas, andhas not decided on specific plans to newly install or expand each of facilities as of the end of the consolidated fiscal year and eachquarter of the consolidated fiscal year. For this reason, it discloses amounts of capital investment by segment.
The amount of capital investment for the fiscal year ending March 31, 2024 is updated as follows (new installation andexpansions, based on the amount recorded as tangible fixed assets and the investment property). The amount of capital investment
which is shown in the Initial Plan is the amount planned as of the filing date of the Annual Securities Report for the 154th
business term.

Segment

The amount of capital investment
for the fiscal year ending March 31, 2024
(Billions of yen)
Initial Plan

Updated Plan

Digital Systems & Services

67.0

67.0

Green Energy & Mobility

99.0

104.0

Connective Industries

80.0

80.0

Automotive Systems

40.0

51.2

Others22.0

22.0

Corporate Items & Eliminations

2.0

1.8

310.0

326.0

Total

(Notes) 1. The figures in the above table include the amount of the right-of-use assets and the investment property, each ofwhich is recorded as property, plant and equipment and other non-current assets, respectively.
2. These planned investments are expected to be mostly financed with the Hitachi Group’s own capital.
3. There are no plans to dispose or sell principal facilities, with the exception of disposing and selling facilities due toroutine upgrading.

8(9) Forward-Looking Statements
Certain statements found in “1. Risk Factors” and “2. Management’s Discussion and Analysis of Consolidated Financial
Conditions, Operating Results and Cash Flows” and other descriptions in this report may constitute “forward-looking statements”
as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s
current views with respect to certain future events and financial 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.” Suchstatements are based on currently available information and are subject to various risks and uncertainties that could cause actual
results to differ
materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forwardlooking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue relianceshould not be placed on “forward-looking statements,” as such statements speak only as of the date of this report.
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, as wellas levels of demand in the major industrial sectors Hitachi serves;• 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;• 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;• fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel,aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and components;• credit conditions of Hitachi’s customers and suppliers;• general socioeconomic and political conditions and the regulatory and trade environment of countries where Hitachi
conducts business, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect
restrictions by other nations on imports and differences in commercial and business customs including, without limitation,
contract terms and conditions and labor relations;• uncertainty as to Hitachi’s ability to response to tightening of regulations to prevent climate change;• 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 Hitachi’s ability to attract and retain skilled personnel;• 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 for such products;• exacerbation of social and economic impacts of the spread of COVID-19;• the possibility of disruption of Hitachi’s operations by natural disasters such as earthquakes and tsunamis, the spread of
infectious diseases, and geopolitical and social instability such as terrorism and conflict;• estimates, fluctuations in cost and cancellation of long-term projects for which Hitachi uses the percentage-of-completion
method to recognize revenue from sales;• increased commoditization of and intensifying price competition for products;• fluctuations in demand of products, etc. and industry capacity;• uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in demandof products, etc., exchange rates and/or price of raw materials or shortages of materials, parts and components;• uncertainty as to the success of cost structure overhaul;• uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation
Business;• uncertainty as to the success of acquisitions of other companies, joint ventures and strategic alliances and the possibility of
incurring related expenses;• uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting
underperforming businesses and to strengthen competitiveness;• the potential for significant losses on Hitachi’s investments in equity-method associates and joint ventures;• uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its
subsidiaries or its equity-method associates and joint ventures have become or may become parties;• the possibility of incurring expenses resulting from any defects in products or services of Hitachi;• uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property; and• uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its employee benefit-related costs.

The factors listed above are not all-inclusive and are in addition to other factors contained elsewhere in this report and inother materials published by Hitachi.

93. Material Agreements, etc.
(1) Absorption-type Company Split
The Company decided that it would conduct an absorption-type company split (the “Company Split") under which Hitachi
Vantara, Ltd., a newly established company, would succeed to the Company's IT Products business in order to reorganize the IT
product business which has been responsible for business development, research and development, and production of data
infrastructure in Japan on October 27, 2023, and entered into an absorption-type company split agreement with Hitachi Vantara,Ltd. on January 26, 2024.
The details of the Company Split are as follows.
1) Company Split Method
The split is an absorption-type split under which the Company will be the splitting company and Hitachi Vantara, Ltd. willbe the succeeding company.
2) Effective Date of the Company Split
April 1, 2024
3) Assets and liabilities succeeded for the Company Split (As of April 1, 2024 (forecast))
Assets:93.5 billion yen
Liabilities: 49.6 billion yen
4) Details of Allotments Related to the Company Split
Hitachi Vantara, Ltd. will issue 199,000 ordinary shares upon the Company Split, and allot all of the shares to theCompany.
5) Calculation Basis Concerning Allotment under the Company Split
As the Company holds all of the issued shares of Hitachi Vantara, Ltd. it is considered appropriate that Hitachi Vantara,Ltd. issue 199,000 shares of common stock and allots all the shares to the Company.
6) Profile of the succeeding company after the Company Split
Name
Hitachi Vantara, Ltd.
Head office

292 Yoshida-cho, Totsuka-ku, Yokohama City, Kanagawa Prefecture

Representative
CapitalPresident Akinobu Shimada
10 billion yen
Design and development of data infrastructure products centered on storage, data
management software, hybrid cloud infrastructure and related services and sales, operation,
monitoring and maintenance in Japan

Business(2) Cross License Agreement
The material contract renewed during the three months ended December 31, 2023 is as follows.
Party

Party

Country

Item undercontract

Contract
description

Contract period

Hitachi-GE Nuclear
Energy, Ltd.
(Consolidated
subsidiary)

GE-Hitachi
Nuclear Energy
Americas LLC

U.S.A.

Nuclear reactor
systems

Cross license ofpatents andtechnology

From October 30, 1991
to March 31, 202410

III. Information on the Company
1. Information on the Company’s Stock, etc.
(1) Total number of shares, etc.
1) Total number of shares
Class

Total number of shares authorized to
be issued (shares)

Common stock

2,000,000,000

Total

2,000,000,0002) Issued shares
Number of sharesissued as of the end of
fiscal year (shares)(December 31, 2023)

Number of sharesissued as of thefiling date (shares)(Note)(February 9, 2024)

Commonstock

927,167,877

927,167,877

Tokyo, Nagoya

Total

927,167,877

927,167,877

-

Class

Stock exchange on which
the Company is listed

Description

The number of shares per
one unit of shares is 100
shares.
-(Note) The "Number of shares issued as of the filing date" does not include shares issued upon exercise of stock acquisition rightsfrom February 1, 2024 to the filing date.
(2) Information on the stock acquisition rights, etc.
1) Details of stock option plans
Not applicable.
2) Details of other stock acquisition rights, etc.
Not applicable.
(3) Information on moving strike convertible bonds, etc.
Not applicable.
(4) Changes in the total number of issued shares and the amount of common stock and other

Date

October 18, 2023 (Note)

Change in
the total
number ofissued shares(shares)(11,073,400)

Balance of thetotal number ofissued shares(shares)

Change incommonstock(Millionsof yen)Balance ofcommonstock(Millionsof yen)Change incapitalreserve(Millionsof yen)Balance ofcapitalreserve(Millionsof yen)927,167,877－

463,417－

181,383(Note) The change in the total number of issued shares is due to the cancellation of treasury stock.
(5) Major shareholders
Not applicable.

11(6) Information on voting rights
Information on voting rights as of September 30, 2023 is stated in this item because the Company does not identify the
number of voting rights as of December 31, 2023 due to the lack of information on the number of the Company’s shares held by
the entity which the Company holds one quarter or more of total number of voting rights of such entity as of December 31, 2023.
1) Issued shares(As of September 30, 2023)
Classification

Number of voting
rightsNumber of shares (shares)

Shares without voting right
Shares with restricted voting right (treasury
stock, etc.)
Shares with restricted voting right (others)

Description

－

－

－

－

－

－

－

－

－

－

－

Shares with full voting right (treasury stock, etc.)

Common stock

11,466,000

Shares with full voting right (others)

Common stock

924,569,900

Shares less than one unit

Common stock

2,205,377－－

938,241,277－－

Number of issued shares
Total number of voting rights

9,245,699

9,245,699－－－(Note) The “Shares with full voting right (others)” column includes 5,300 shares registered in the name of Japan Securities Depository
Center, Incorporated (account for managing stocks whose shareholders have not transferred titles) and 53 voting rights for
those shares.
2) Treasury stock, etc.
(As of September 30, 2023)

Name ofshareholder

Hitachi, Ltd.

Address

6-6, Marunouchi 1-chome,
Chiyoda-ku, Tokyo

SAITA KOUGYOU

5-3, Takinogawa 5-chome, Kita-

CO., LTD.

ku, Tokyo

Nitto Jidosha

3268, Nagaoka, Ibarakimachi,

Kiki K.K.

Higashiibaraki-gun, Ibaraki

Mizuho Co., Inc.
Total

Number ofshares held
under own name(shares)

28-8, Honkomagome 2-chome,
Bunkyo-ku, Tokyo－

Number ofshares held
under thenames ofothers(shares)

Total shares
held (shares)

Ownership
percentage tothe total
number ofissued shares(%)

11,434,900－

11,434,900

1.22

17,600－17,6000.00

10,500－10,500

0.00

3,000

－

3,000

0.00

11,466,000－

11,466,000

1.22(Note) The total number of issued shares decreased to 11,073,400 due to the cancellation of treasury stock on October 18, 2023.

12

2. Changes in Senior Management
Changes in senior managements from the filing date of the Annual Securities Report for the 154th business term to
December 31, 2023 were as follows.
1) Changes in Responsibility [Effective October 1, 2023]
Former Position and responsibility
Position
Responsibility

Senior Vice
President andExecutive Officer

New Position and responsibility
Name
Position
Responsibility
Business for government,
public corporation and social
Business for government,
infrastructure systems, andSenior Vice
public corporation and social
defense systems business
Katsuya Nagano
President andinfrastructure systems andExecutive Officer
Assistant to Executive Vice
defense systems businessPresident (Digital Systems &Services (Japan))(Note) Matters delegated to the Executive Officer by the Board of Directors are described in “Responsibility” column.
2) The Number of Men and Women and Women's Percentage after Changes in Senior Management
Men: 44 persons, Women: 4 persons(Women’s percentage to total number of Directors and Executive Officers: 8%)
The numbers and the percentage mentioned above are the same as those described in the Annual Securities Report for the154th business term.

13

IV. Financial Information
Refer to the condensed quarterly consolidated financial statements incorporated in this Quarterly Report.

Part II Information on Guarantors, etc. for the Company
Not applicable.

14

Condensed Quarterly Consolidated Financial Statements
Condensed Quarterly Consolidated Statement of Financial Position
Millions of yen
Note
AssetsCurrent assets
Cash and cash equivalents
Trade receivables and contract assets
Inventories
Investments in securities and other financial assets
Other current assets
Total current assets

6
7

Non-current assets
Investments accounted for using the equity method
Investments in securities and other financial assets
Property, plant and equipment
Goodwill
Other intangible assets
Other non-current assets
Total non-current assets
Total assets

5
7
11
8

Liabilities
Current liabilities
Short-term debt
Current portion of long-term debt
Other financial liabilities
Trade payables
Accrued expenses
Contract liabilities
Other current liabilities
Total current liabilities

7
7

Non-current liabilities
Long-term debt
Retirement and severance benefits
Other non-current liabilities
Total non-current liabilities
Total liabilities

78

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

59

Non-controlling interests

5

December 31, 2023

March 31, 2023

864,3012,720,806
1,600,628
292,711355,438

833,2832,874,987
1,646,188
346,916
227,161

5,833,884

5,928,535

771,640
500,627
1,173,573
2,230,077
1,145,782
417,629

478,620496,8971,700,471
2,165,350
1,244,688
486,853

6,239,328

6,572,879

12,073,212

12,501,414

500,320
86,101
307,767
1,342,390
557,023
1,570,486
485,067

777,650
141,861
263,748
1,548,497
720,961
1,241,366
472,095

4,849,154

5,166,178

1,168,146
281,775
350,744

1,293,837
323,264
382,568

1,800,665

1,999,669

6,649,819

7,165,847

463,417
3,844,041
976,045(4,839)462,817
3,637,184
846,392(3,539)5,278,664

4,942,854

144,729392,713

Total equity

5,423,393

5,335,567

Total liabilities and equity

12,073,212

12,501,414

See accompanying notes to condensed quarterly consolidated financial statements.

F-1

Condensed Quarterly Consolidated Statement of Profit or Loss
Nine months ended December 31, 2023 and 2022

Millions of yen

Revenues
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Financial income
Financial expenses
Share of profits (losses) of investments accounted for using the equity
methodEBIT (Earnings before interest and taxes)
Interest income
Interest charges
Income before income taxes
Income taxes
Net income
Net income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests
Earnings per share attributable to Hitachi, Ltd. stockholders
Basic
Diluted

Note
10

5,11
8,11
12
12

2023
7,218,154(5,355,406)
1,862,748(1,337,047)
119,775(55,410)
41,899(7,570)2022
8,108,796(6,123,921)
1,984,875(1,457,376)
71,658(152,309)
9,915(16,260)

42,63134,016

667,026
29,987(54,906)
642,107(165,603)
476,504

474,519
17,637(35,337)
456,819(122,962)
333,857

445,092
31,412292,232
41,625478.24477.69Yen
306.99306.6613

Condensed Quarterly Consolidated Statement of Comprehensive Income
Nine months ended December 31, 2023 and 2022

Millions of yen

Net income

Note

2023
476,504

2022
333,857

Other comprehensive income (OCI)
Items not to be reclassified into net income
Net changes in financial assets measured at fair value through OCI
Remeasurements of defined benefit plans
Share of OCI of investments accounted for using the equity method
Total items not to be reclassified into net income

43,966(211)
322
44,077(17,131)
17,232
641
742

Items that can be reclassified into net income
Foreign currency translation adjustments
Net changes in cash flow hedges
Share of OCI of investments accounted for using the equity method
Total items that can be reclassified into net income

106,5399,412
4,457
120,408

209,406
5,375
22,664
237,445

164,485
640,989

238,187
572,044587,227
53,762481,233
90,811Other comprehensive income (OCI)
Comprehensive income
Comprehensive income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests

See accompanying notes to condensed quarterly consolidated financial statements.

F-2

Condensed Quarterly Consolidated Statement of Profit or Loss
Three months ended December 31, 2023 and 2022

Millions of yen
Note

Revenues
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Financial income
Financial expenses
Share of profits (losses) of investments accounted for using the equity
methodEBIT (Earnings before interest and taxes)
Interest income
Interest charges
Income before income taxes
Income taxes
Net income
Net income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests
Earnings per share attributable to Hitachi, Ltd. stockholders
Basic
Diluted2023
2,258,085(1,624,903)
633,182(432,963)
98,209(12,635)
35,275(3,327)2022
2,692,017(2,022,364)
669,653(466,783)
469(21,198)
7,103(14,354)

9,399

7,339

327,140
10,256(17,345)
320,051(75,885)
244,166

182,229
6,329(13,884)
174,674(41,663)
133,011

235,989
8,177

119,717
13,294254.77254.48Yen
127.48127.3413

Condensed Quarterly Consolidated Statement of Comprehensive Income
Three months ended December 31, 2023 and 2022

Millions of yen

Net income

Note

2023
244,166

2022
133,011

Other comprehensive income (OCI)
Items not to be reclassified into net income
Net changes in financial assets measured at fair value through OCI
Remeasurements of defined benefit plans
Share of OCI of investments accounted for using the equity method
Total items not to be reclassified into net income

11,686(46)(75)
11,565

1,126
70
1,196

Items that can be reclassified into net income
Foreign currency translation adjustments
Net changes in cash flow hedges
Share of OCI of investments accounted for using the equity method
Total items that can be reclassified into net income(283,878)(1,292)(18,919)(304,089)(343,067)
6,117(15,534)(352,484)(292,524)(48,358)(351,288)(218,277)(54,266)
5,908(199,983)(18,294)

Other comprehensive income (OCI)
Comprehensive income
Comprehensive income attributable to:
Hitachi, Ltd. stockholders
Non-controlling interests

See accompanying notes to condensed quarterly consolidated financial statements.

F-3

Condensed Quarterly Consolidated Statement of Changes in Equity
Nine months ended December 31, 2023

Millions of yen
2023

Commonstock
Balance at beginning of period

CapitalsurplusRetainedearnings(note 9)

Accumulated
othercomprehensive
income3,637,184

846,392(3,539)Treasurystock,
at cost

Total
Hitachi, Ltd.
stockholders’equityNoncontrollinginterests(note 5)

Total equity

4,942,854

392,713

5,335,567

462,817-

Reclassified into retained earnings--

14,189(14,189)

-

-

-

-

Net income--

445,092--

445,092

31,412476,504

Other comprehensive income

-

-

-

142,135-

142,135

22,350164,485

Dividends to Hitachi, Ltd. stockholders--(144,461)--(144,461)-(144,461)

Dividends to non-controlling interests

-

-

-

-

-

-

(30,291)(30,291)

Acquisition of treasury stock

-

-

-

-

(100,301)(100,301)-(100,301)

Sales of treasury stock

-

(152)

-

-

208

56

-

56

Cancellation of treasury stock-(98,793)--

98,793

-

-

-

600

600

-

-

-

1,200

-

1,200

Transfer to capital surplus fromretained earnings-

105,109(105,109)

-

-

-

-

-

Changes in non-controlling interests-(6,764)(2,854)

1,707-(7,911)(271,455)(279,366)

Changes in equity

Issuance of new shares

Total changes in equity

600-

206,857

129,653(1,300)335,810(247,984)

87,826

Balance at end of period

463,417-

3,844,041

976,045(4,839)5,278,664

144,729

5,423,393

Nine months ended December 31, 2022

Millions of yen
2022
Total
Hitachi, Ltd.
stockholders’equityNoncontrollinginterests(note 5)

Total equity(3,002)

4,341,836

1,013,441

5,355,277(50,205)

-

-

-

-

292,232--

292,232

41,625

333,857-

189,001-

189,001

49,186238,187-(129,148)--(129,148)-(129,148)

-

-

-

-

-

-

(24,388)(24,388)

-

-

-

-

(200,160)(200,160)-(200,160)

-

(94)

-

-

255

161

-

161

Commonstock

Capitalsurplus(note 5)Retainedearnings(note 9)

Accumulated
othercomprehensive
income461,731

46,1193,197,725

639,263

Reclassified into retained earnings--

50,205

Net income--

Other comprehensive income--

Dividends to Hitachi, Ltd. stockholders-

Dividends to non-controlling interests
Acquisition of treasury stock
Sales of treasury stock

Balance at beginning of period

Treasurystock,
at costChanges in equity

Cancellation of treasury stock
Issuance of new shares
Transfer to capital surplus fromretained earnings
Changes in non-controlling interests-(199,417)--

199,417

-

-

-

1,086

1,086

-

-

-

2,172

-

2,172

-

150,526(150,526)

-

-

-

-

-

-

1,780

-

26,296-28,076(433,438)(405,362)

Total changes in equity

1,086(46,119)

62,763

165,092(488)

182,334(367,015)(184,681)

Balance at end of period

462,817-3,260,488

804,355(3,490)4,524,170

646,426

5,170,596

See accompanying notes to condensed quarterly consolidated financial statements.

F-4

Condensed Quarterly Consolidated Statement of Cash Flows
Nine months ended December 31, 2023 and 2022

Millions of yen
Note

Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization
Impairment losses
Income taxes
Share of (profits) losses of investments accounted for using the equity method
Financial income and expenses
Net (gain) loss on business reorganization and others(Gain) loss on sale of property, plant and equipment
Change in trade receivables and contract assets
Change in inventories
Change in trade payables
Change in accrued expenses
Change in retirement and severance benefits
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

2023

2022

476,504

333,857

350,519
7,879
165,603(42,631)
19,755(96,601)(21,671)
205,904(220,680)(12,242)(64,457)
1,846(80,674)
689,054
28,431
17,655(54,729)(137,546)
542,865

405,975
67,290122,962(34,016)
7,983(64,980)(5,369)126,910(368,518)(19,233)(103,782)
54,631(1,436)522,274
16,251
17,634(34,490)(141,579)
380,090(160,881)(113,403)
39,544(196,643)(108,534)
48,935(58,265)(36,873)

Cash flows from investing activities:
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of property, plant and equipment, and intangible assets
Purchase of investments in securities and other financial assets(including investments in subsidiaries and investments accounted for using the equity method)
Proceeds from sale of investments in securities and other financial assets(including investments in subsidiaries and investments accounted for using the equity method)Other
Net cash provided by (used in) investing activities

106,004

151,352

14,998(172,003)(3,514)(145,277)

Cash flows from financing activities:
Change in short-term debt, net
Proceeds from long-term debt
Payments on long-term debt
Proceeds from payments from non-controlling interests
Dividends paid to Hitachi, Ltd. stockholders
Dividends paid to non-controlling interests
Acquisition of common stock for treasury
Proceeds from sales of treasury stock
Purchase of shares of consolidated subsidiaries from non-controlling interests
Other
Net cash provided by (used in) financing activities(72,076)
95,907(121,228)350(144,442)(32,323)(100,301)
56(1,703)(375,760)

481,670
77,730(173,272)
310(129,102)(43,038)(200,160)
161(274,687)(469)(260,857)

Effect of exchange rate changes on cash and cash equivalents
Change in cash and cash equivalents

35,91631,01816,516(9,528)Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

833,283
864,301

968,827
959,299

See accompanying notes to condensed quarterly consolidated financial statements.

F-5

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
(1) Nature of Operations
Hitachi, Ltd. (the Company) is a corporation domiciled in Japan, whose shares are listed on the Tokyo Stock Exchange. The
condensed quarterly consolidated financial statements of the Company as of and for the nine months ended December 31, 2023
comprise the Company, its subsidiaries and the Company’s interests in associates and joint ventures. The Company’s and its
subsidiaries’ businesses are global and diverse, and include manufacturing and services in five segments consisting of Digital
Systems & Services, Green Energy & Mobility, Connective Industries, Automotive Systems and Others.
(2) Basis of Presentation
As the Company meets the requirements of a “Specified Company applying Designated International Financial ReportingStandards” pursuant to Article 1-2 of the Ordinance on Terminology, Forms and Preparation Methods of Quarterly Consolidated
Financial Statements (Cabinet Office Ordinance No.64 of 2007), the condensed quarterly consolidated financial statements of theCompany have been prepared in accordance with International Accounting Standards (IAS) 34 “Interim Financial Reporting,” aspermitted by the provision of Article 93 of the Ordinance. They do not include all the information and disclosures required for acomplete set of financial statements prepared in accordance with International Financial Reporting Standards (IFRS), and should beread in conjunction with the financial statements and notes included in the Company’s annual consolidated financial statements forthe year ended March 31, 2023.
Management of the Company has made a number of judgments, estimates and assumptions relating to the application of accounting
policies, reporting of revenues and expenses and assets and liabilities in the preparation of these condensed quarterly consolidated
financial statements. Actual results could differ from those estimates.
Estimates and assumptions are continually evaluated. The effect of a change in accounting estimates, if any, is recognized in thereporting period in which the change was made and in future periods.
Judgments, estimates and assumptions that could have a material effect on these condensed quarterly consolidated financial
statements are basically the same as those disclosed in the Company’s annual consolidated financial statements for the year ended
March 31, 2023.
(3) Material Accounting Policies
Material accounting policies adopted in preparation of the condensed quarterly consolidated financial statements are consistent withthose used in the preparation of the Company’s annual consolidated financial statements for the year ended March 31, 2023.
Income taxes for the nine months ended December 31, 2023 are computed using the estimated annual effective tax rate.

F-6

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
(4) Segment Information
The operating segments of the Company are the components for which separate financial information is available and which isevaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.
The Company discloses its business in five reportable segments, corresponding to categories of activities classified primarily by thesimilarities for the nature of markets, products and services, and economic characteristics. Several operating segments areaggregated into Green Energy & Mobility and Connective Industries for financial reporting purposes so that users of the financial
statements better understand the Company’s financial position and business performance. The Company aggregates operating
segments based on the similarities of economic characteristics mainly using the segment profit (loss) margin ratio of operating
segments. The primary products and services included in each segment are as follows:
Digital Systems & Services:
Digital solutions (System integration, Consulting, Cloud services), IT products (Storage, Servers), Software, and ATMs
Green Energy & Mobility:
Energy solutions (Power grids, Renewable energy, Nuclear), and Railway systems
Connective Industries:
Building systems (Elevators, Escalators), Smart life & ecofriendly systems (Home appliances, Air conditioners), Measurement andanalytical systems (Semiconductor manufacturing equipment, Clinical analyzers), Industry & distribution solutions, Water &environment solutions, and Industrial machinery
Automotive Systems:
Powertrain, Chassis, Advanced driver assistance, and Motorcycle systems
Others:Property management and others
Effective from April 1, 2023, a portion of the business previously included in the Green Energy & Mobility segment has beentransferred to Business Management Reinforcement Division, and included in Others. Figures for the nine months ended December
31, 2022 have been restated on the basis of the reclassification.
In August 2022, the Company sold a certain number of shares of Hitachi Construction Machinery Co., Ltd. (Hitachi Construction
Machinery). As a result, Hitachi Construction Machinery and its subsidiaries, which were included in the Hitachi Construction
Machinery segment, became equity-method associates of the Company. In January 2023, the Company sold all shares of Hitachi
Metals, Ltd. (currently Proterial, Ltd.). As a result, Hitachi Metals, Ltd. was deconsolidated. In October 2023, the Company sold acertain number of shares of Hitachi Astemo, Ltd. (Hitachi Astemo). As a result, Hitachi Astemo and its subsidiaries, which were
included in the Automotive Systems segment, became equity-method associates of the Company.
Accordingly, the Hitachi Construction Machinery segment, the Hitachi Metals segment and the Automotive Systems segment
ceased to be business segments, but the segment figures for the nine months ended December 31, 2023 and 2022 are disclosed
individually to enhance fair disclosure.
The Company includes its share of profits (losses) of investments accounted for using the equity method of Hitachi Construction
Machinery and its subsidiaries after the transfer of shares from the second quarter of the fiscal year ended March 31, 2023, and its
share of profits (losses) of investments accounted for using the equity method of Hitachi Astemo and its subsidiaries after thetransfer of shares from the third quarter of the fiscal year ended March 31, 2024, respectively, in Corporate items & Eliminations.

F-7

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
The following tables show business segment information for the nine months ended December 31, 2023 and 2022.
Millions of yen
2023
Segment
Green Energy
Connective& Mobility
Industries

Digital Systems& Services
Revenues
Revenues from External Customers
Revenues from Intersegment Transactions
Total Revenues
Segment Profit (Loss)

1,704,088
119,160
1,823,248
222,071

2,081,752
46,7002,128,452
126,971

Automotive
Systems

2,064,586
139,282
2,203,868
224,409

1,160,008
4,376
1,164,384
50,694
Millions of yen

2023
Segment
HitachiConstruction
Machinery
Revenues
Revenues from External Customers
Revenues from Intersegment Transactions
Total Revenues
Segment Profit (Loss)

Hitachi
Metals-OthersSubtotal

Corporate
items &
Eliminations

189,012179,074
368,086
13,5397,199,446
488,592
7,688,038
637,684

18,708(488,592)(469,884)(5,457)-

Total

7,218,154
7,218,154
632,227
Millions of yen

2022
Segment
Green Energy
Connective& Mobility
Industries

Digital Systems& Services
Revenues
Revenues from External Customers
Revenues from Intersegment Transactions
Total Revenues
Segment Profit (Loss)

1,555,957
122,082
1,678,039
188,3211,667,924
39,978
1,707,902
101,511

Automotive
Systems

2,023,418
146,960
2,170,378
227,407

1,373,442
3,773
1,377,215
39,868Millions of yen

2022
Segment
HitachiConstruction
Machinery
Revenues
Revenues from External Customers
Revenues from Intersegment Transactions
Total Revenues
Segment Profit (Loss)

474,168946
475,11443,226

Hitachi
MetalsOthersSubtotal

Corporate
items &
Eliminations

825,588
22,138
847,726
43,054

178,123
170,622348,745(42)

8,098,620
506,4998,605,119
643,345

10,176(506,499)(496,323)(19,112)

Total

8,108,796
8,108,796
624,233

Segment profit (loss) is measured by Adjusted EBITA. Adjusted EBITA is defined as Adjusted Earnings before Interest, Taxes andAmortization. Adjusted EBITA represents profit (loss) calculated by deducting selling, general and administrative expenses fromgross profit, adding back amortization of intangible assets, etc. recognized upon business combinations, and adding or deducting
share of profits (losses) of investments accounted for using the equity method.
Intersegment transactions are generally recorded at the same prices used in arm’s length transactions. Corporate items include
corporate expenses not allocated to individual business segments, such as expenditures for advanced R&D, a part of net gain (loss)
on share of profits (losses) of investments accounted for using the equity method, and others.

F-8

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
Adjustments to income before income taxes from segment profit (loss) are as follows.
Millions of yen
2023
Segment Profit (Loss)
Amortization of Intangible assets, etc.
recognized upon business combinations
Other income
Other expenses
Financial income
Financial expenses
EBIT (Earnings before interest and taxes)
Interest income
Interest charges
Income before income taxes

F-9

2022
632,227624,233(63,895)(62,718)

119,775(55,410)
41,899(7,570)667,026
29,987(54,906)
642,107

71,658(152,309)
9,915(16,260)
474,519
17,637(35,337)
456,819

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
(5) Business Acquisitions and Divestitures
The following are the main Business Acquisitions and Divestitures for the nine months ended December 31, 2023, including theperiod up to the approval date of the condensed quarterly consolidated financial statements.
(a) Sale of shares of Hitachi Astemo, Ltd. (hereinafter “Hitachi Astemo”)
On March 30, 2023, the Company entered into the following two agreements regarding the transfer of a part of the shares ofHitachi Astemo, a consolidated subsidiary of the Company in the Automotive Systems segment, to Hitachi Astemo and Honda
Motor Co., Ltd. (hereinafter “Honda”) and for inviting JIC Capital, Ltd. (hereinafter “JICC”) as a new joint partner.
(i) Share Subscription Agreement with JICC-01 Limited Partnership (hereinafter “JICC-01”) managed by JICC-01 G.K., which
is a wholly owned subsidiary of JICC including that Hitachi Astemo issues Class shares to JICC-01, and Hitachi Astemo
purchases a part of shares of its common stocks held by the Company, using a portion of the funds raised through theissuance of Class shares(ii) Agreement for investment in kind and share transfer with Honda including that Hitachi Astemo issues common stocks to
Honda in exchange for Honda to invest the shares of Hitachi Astemo Electric Motor Systems, Ltd. in kind and the Company
transfers a part of shares of Hitachi Astemo’s common stocks to Honda
On October 16, 2023, the series of transactions was completed. The Company’s consideration was 157,807 million yen.
As a result of the series of transactions, the Company’s ownership ratio of shares of Hitachi Astemo decreased from 66.6% to40%, and Hitachi Astemo turned into an equity-method associate of the Company.
A gain on the sale of Hitachi Astemo shares in the amount of 121,642 million yen was recognized in Other income in thecondensed quarterly consolidated statement of profit or loss for the nine months ended December 31, 2023. The gain of 121,642
million yen included a gain of 77,792 million yen recognized due to fair value revaluation of the remaining Hitachi Astemo
shares.
Furthermore, changes in non-controlling interests in the condensed quarterly consolidated statement of changes in equity
include derecognition of non-controlling interest in Hitachi Astemo as a result of its deconsolidation.

F-10

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
The following table shows the assets, liabilities, and equity of Hitachi Astemo as of March 31, 2023.
Millions of yen
138,491
341,914
284,449
39,75723,301
827,912
11,406
12,196555,360
86,480125,397
68,325859,164
1,687,076

Cash and cash equivalents
Trade receivables and contract assets
Inventories
Investments in securities and other financial assets
Other current assets
Total current assets
Investments accounted for using the equity method
Investments in securities and other financial assets
Property, plant and equipment
Goodwill
Other intangible assets
Other non-current assets
Total non-current assets
Total assets
Short-term debt
Current portion of long-term debt
Other financial liabilities
Trade payables
Accrued expenses
Contract liabilities
Other current liabilities
Total current liabilities
Long-term debt
Retirement and severance benefits
Other non-current liabilities
Total non-current liabilities
Total liabilities

186,00228,54738,796
267,933
111,110676
30,900663,964
279,680
31,045
14,249324,974
988,938

Total Hitachi, Ltd. stockholders’ equity
Non-controlling interests
Total equity
Total liabilities and equity

437,640
260,498
698,138
1,687,076

The table above included intercompany liabilities as follows.
March 31, 2023
Short-term debt
Accrued expenses

181,165
12,154Long-term debt

43,178The following are the main Business Acquisitions and Divestitures for the nine months ended December 31, 2022.
(a) Additional acquisition of shares of Hitachi Energy Ltd (hereinafter “Hitachi Energy”)
On September 30, 2022, the Company signed an agreement with ABB Ltd (hereinafter “ABB”) to acquire 19.9% of the sharesof Hitachi Energy, a consolidated subsidiary of the Company in the Green Energy & Mobility segment, owned by ABB by
exercising call options, owned by the Company.
As a result of additional acquisition of shares on December 28, 2022, the Company’s ownership ratio of shares of Hitachi
Energy increased from 80.1% to 100% and Hitachi Energy has become a wholly owned subsidiary of the Company. The
consideration was 1,679 million U.S. dollars (243,200 million yen).
The Company derecognized the non-controlling interests and recognized the difference between the consideration and noncontrolling interest in capital surplus.

F-11

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
(b) Sale of shares of Hitachi Construction Machinery Co., Ltd. (hereinafter “Hitachi Construction Machinery”)
On January 14, 2022, the Company entered into an agreement regarding the transfer of a part of the shares of Hitachi
Construction Machinery, a consolidated subsidiary of the Company in the Hitachi Construction Machinery segment, with HCJI
Holdings G.K., a special purpose company which is jointly invested by HCJ Holdings Ltd., a special purpose company wholly
owned by a fund that Japan Industrial Partners, Inc. manages, operates, and provides information, and Citrus Investment LLC, aspecial purpose company wholly owned by ITOCHU Corporation. In accordance with this agreement, a certain number ofshares of Hitachi Construction Machinery common stocks owned by the Company were transferred to HCJI Holdings G.K., on
August 23, 2022.
As a result of this transfer of shares, the Company’s ownership ratio of shares of Hitachi Construction Machinery decreased
from 51.4% to 25.4%, and Hitachi Construction Machinery turned into an equity-method associate of the Company. The
Company’s consideration was 182,457 million yen.
A gain on the sale of Hitachi Construction Machinery shares in the amount of 39,211 million yen was recognized in Other
income in the condensed quarterly consolidated statement of profit or loss for the nine months ended December 31, 2022.
Furthermore, changes in non-controlling interests in the condensed quarterly consolidated statement of changes in equity
include derecognition of non-controlling interest in Hitachi Construction Machinery as a result of its deconsolidation.
The following table shows the assets, liabilities, and equity of Hitachi Construction Machinery as of March 31, 2022.
Millions of yen
87,583
237,792368,267
62,193
8,421
764,256
26,662
63,197442,904
55,36758,967
29,321
676,418
1,440,674

Cash and cash equivalents
Trade receivables and contract assets
Inventories
Investments in securities and other financial assets
Other current assets
Total current assets
Investments accounted for using the equity method
Investments in securities and other financial assets
Property, plant and equipment
Goodwill
Other intangible assets
Other non-current assets
Total non-current assets
Total assets
Short-term debt
Current portion of long-term debt
Other financial liabilities
Trade payables
Accrued expenses
Contract liabilities
Other current liabilities
Total current liabilities
Long-term debt
Retirement and severance benefits
Other non-current liabilities
Total non-current liabilities
Total liabilities

103,320
81,731
51,239144,531
37,965
9,967
24,893453,646
229,487
17,62250,607
297,716
751,362

Total Hitachi, Ltd. stockholders’ equity
Non-controlling interests
Total equity
Total liabilities and equity

318,069
371,243689,3121,440,674

F-12

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
The following is a material Business Acquisition other than the above.
(a) Acquisition of Thales’ ground transportation systems business
On August 3, 2021, Hitachi Rail Ltd. (hereinafter “Hitachi Rail”), a consolidated subsidiary of the Company in the Green
Energy & Mobility segment, signed an agreement with Thales S.A. (hereinafter “Thales”) to acquire the ground transportation
systems business in order to expand the rail signaling systems business globally. Based on the agreement, Hitachi Rail will
acquire Thales’ ground transportation systems business which will be carved out from Thales. The transaction is subject to theusual conditions including regulatory and antitrust clearances and is expected to be completed by the first half of 2024. Hitachi
Rail agreed on an enterprise value of 1,660 million euro (approximately 260.8 billion yen) and the final purchase price will be
determined after certain adjustments. The effects of this transaction on the Company’s consolidated financial statements are
currently being evaluated.

F-13

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
(6) Trade Receivables and Contract Assets
The components of trade receivables and contract assets are as follows:
Millions of yen
December 31, 2023
Accounts receivable

March 31, 2023

1,666,712

1,972,168

Contract assets

973,859804,500

Others80,23598,319Total

2,720,806

2,874,987

Trade receivables and contract assets are stated as net of the allowance for doubtful receivables.
Others include electronically recorded monetary claims and notes receivable.
(7) Fair Value of Financial Instruments(a) Fair Value Measurements
The following methods and assumptions are used to measure the fair value of financial assets and liabilities.
Cash and cash equivalents, Trade receivables, Short-term loans receivable, Other accounts receivable, Short-term debt,
Other accounts payable and Trade payables
The carrying amount approximates the fair value because of the short maturity of these instruments.
Investments in securities and other financial assets
The fair value of lease receivables is based on the present value of lease payments receivable calculated for each group of years tomaturity using discount rates that reflect the time to maturity and credit risk.
Investment securities with quoted market prices are estimated using the quoted share prices. In the absence of an active market
for investment securities, quoted prices for similar investment securities, quoted prices associated with transactions that are notdistressed for identical or similar investment securities or other relevant information including market interest rate curves,referenced credit spreads or default rates, are used to determine fair value. If significant inputs of fair value measurement areunobservable, the Company uses price information provided by financial institutions to evaluate such investments. The
information provided is corroborated by the income approach using its own valuation model, or the market approach using
comparisons with prices of similar securities.
The fair value of long-term loans receivable is estimated based on the present value of future cash flows using the interest rateapplicable to an additional loan of the same type.
Derivative assets are measured at fair value based on quoted prices associated with transactions that are not distressed, prices ininactive markets, or based on models using interest rate curves and forward and spot prices for currencies and commodities. If
significant inputs are unobservable, the Company mainly uses the income approach or the market approach to corroborate
relevant information provided by financial institutions and other available information.
Long-term debt
The fair value of long-term debt is estimated based on quoted market prices or the present value of future cash flows using themarket interest rates applicable to the same contractual terms.
Other financial liabilities
Derivative liabilities are measured at fair value based on quoted prices associated with transactions that are not distressed, prices
in inactive markets, or based on models using interest rate curves and forward and spot prices for currencies and commodities. If
significant inputs are unobservable, the Company uses mainly the income approach or the market approach to corroborate
relevant information provided by financial institutions and other available information.

F-14

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
(b) Financial Instruments Measured at Amortized Cost
The carrying amounts and estimated fair values of the financial instruments measured at amortized cost as of December 31 andMarch 31, 2023 are as follows.
The fair value estimated for financial assets and liabilities measured at amortized cost is classified in Level 2 of the fair value
hierarchy.
Millions of yen
December 31, 2023
Carrying amounts

March 31, 2023

Estimated
fair values

Carrying amounts

Estimated
fair values

AssetsInvestments in securities and otherfinancial assets
Lease receivables

24,88825,82622,85822,858Debt securities

47,34547,03546,72946,729

964

964

385

385

Bonds

220,000

218,804

160,000

159,250

Long-term borrowings

794,254792,566

1,022,994

1,022,130

Long-term loans receivable
Liabilities
Long-term debt [1][1] Long-term debt is included in Current portion of long-term debt and Long-term debt in the condensed quarterly consolidated
statement of financial position.
(c) Financial Instruments Measured at Fair Value
Financial instruments measured at fair value on a recurring basis after the initial recognition are classified into three levels of thefair value hierarchy based on the measurement inputs’ observability as follows:
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets
Level 2: Valuations measured by direct or indirect observable inputs other than Level 1
Level 3: Valuations measured by significant unobservable inputs
When several inputs are used for a fair value measurement, the level is determined based on the input that is significant with thelowest level in the fair value measurement as a whole.
Transfers between levels are deemed at the beginning of each quarter period.

F-15

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
The following tables present the assets and liabilities that are measured at fair value on a recurring basis as of December 31 andMarch 31, 2023.
December 31, 2023
Class of financial instruments

Millions of yen
Level 1

Level 2

Level 3

Total

Financial assets measured at fair value
through profit or loss:
Investments in securities and otherfinancial assets
Equity securities

290-

36,137

Debt securities

9,670

4,998

2,924

17,592-

124,530

2,095

126,625

214,702-102,971

317,673

224,662

129,528

144,127

498,317-75,084-75,084-75,084-75,084

Derivatives

36,427

Financial assets measured at fair value
through other comprehensive income:Investments in securities and otherfinancial assets
Equity securities
Total financial assets at fair value
Financial liabilities measured at fair value
through profit or loss:
Other financial liabilities
Derivatives
Total financial liabilities at fair value
March 31, 2023
Class of financial instruments

Millions of yen
Level 1

Level 2

Level 3

Total

Financial assets measured at fair value
through profit or loss:
Investments in securities and otherfinancial assets
Equity securities

335

Debt securities
Derivatives-

28,352

28,687

8,684

4,145

4,959

17,788-78,327-78,327234,175-

104,445

338,620

243,194

82,472

137,756

463,422-

49,385-49,385-49,385-49,385

Financial assets measured at fair value
through other comprehensive income:Investments in securities and otherfinancial assets
Equity securities
Total financial assets at fair value
Financial liabilities measured at fair value
through profit or loss:
Other financial liabilities
Derivatives
Total financial liabilities at fair value

F-16

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
The following tables present the changes in Level 3 instruments measured on a recurring basis for the nine months ended
December 31, 2023 and 2022.
December 31, 2023
Level 3 financial assets
Balance at beginning of period
Gain (loss) in profit or loss [1]Gain in OCI [2]Purchases
Sales and redemption
Acquisitions and divestitures
Other
Balance at end of period
Unrealized gain relating tofinancial assets held at end of period [4]Millions of yen
Equitysecurities

Debt
securities

Derivatives

Total

132,797
1,978
3,247
7,558
(7,730)(2,170)3,428
139,108

4,959
(40)
39
(733)
(14)
(1,287)
2,924

2,095
2,095

137,756
1,938
3,247
9,692
(8,463)(2,184)2,141
144,127

1,946

-

-

1,946

December 31, 2022
Level 3 financial assets
Balance at beginning of period
Gain in profit or loss [1]Loss in OCI [2]Purchases
Sales and redemption
Acquisitions and divestitures
Other [3]Balance at end of period
Unrealized gain relating tofinancial assets held at end of period [4]Millions of yen
Equitysecurities

Debt
securities

Derivatives

Total

123,632
2,803(12,112)
20,407(1,102)(8,175)(2,862)
122,591

5,686
94
514
(506)
(547)
(292)
4,949

-

129,318
2,897(12,112)
20,921(1,608)(8,722)(3,154)
127,540

2,792

94

-

2,886

[1] Gain (loss) in profit or loss related to Financial assets measured at fair value through profit or loss is included in Financial
income and Financial expenses in the condensed quarterly consolidated statement of profit or loss.
[2] Gain (loss) in OCI related to Financial assets measured at fair value through other comprehensive income is included in Net
changes in financial assets measured at fair value through OCI in the condensed quarterly consolidated statement ofcomprehensive income.
[3] The amount of Hitachi Metals' assets reclassified to Assets held for sale is included in Other.
[4] Unrealized gain relating to Financial assets measured at fair value through profit or loss held at the end of period is includedin Financial income in the condensed quarterly consolidated statement of profit or loss.
Fair values are measured by the finance departments in accordance with the Company’s policies and procedures. Valuation
models are determined so that they reflect each financial instrument’s nature, characteristics and risks most appropriately. The
finance departments continually examine changes in important inputs that could affect the fair value. In case the fair value of afinancial instrument was significantly impaired, administrators review and approve the impairment loss.

F-17

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
(8) Employee Benefits(Revision of defined benefit pension plan)
The following is the main revision of defined benefit pension plan for the nine months ended December 31, 2022.
Since the Company and a consolidated subsidiary of the Company introduced a risk-sharing corporate pension plan on April 1,
2019, for current employees participating in the defined benefit pension plan managed by the Hitachi Pension Fund, the same has
been promoted to the other subsidiaries that participate in pension plan managed by the Hitachi Pension Fund. On April 1, 2022,
newly 43 subsidiaries have changed their pension plans for current employees from defined benefit pension plan to risk-sharing
corporate pension plan, and now the revision of Hitachi group pension plan managed by the Hitachi Pension Fund has been almost
completed.
Under this plan, a risk reserve contribution is determined in advance in accordance with the rules governing the plan, and thepension benefits are adjusted annually based on the financial position of the plan to maintain balanced finance.
In terms of the corresponding accounting treatment for retirement benefits, risk-sharing corporate pension plans, for which anentity accepts contribution obligations to the extent stipulated in the rules but has no further obligations to make any additional
contributions, are classified as defined contribution plans. Since the risk-sharing corporate pension plans, which subsidiaries
introduced on April 1, 2022, impose no additional contribution obligations, at the time of the shift to the revised plan, thedifference between the defined benefit obligations related to the portion transferred to the revised plan and the amount of assets
transferred to the revised plan corresponding to the decrease in defined benefit obligations, 51,185 million yen, was recognized as asettlement loss in Other expenses in the condensed quarterly consolidated statement of profit or loss for the nine months ended
December 31, 2022. And in the condensed quarterly consolidated statement of financial position for the nine months ended
December 31, 2022, Other non-current assets decreased by 49,334 million yen, and Retirement and severance benefits increased by
1,851 million yen, respectively. Excluding the settlement loss in above, the impacts of changing pension plans on profit or loss forthe fiscal year ended March 31, 2023 were not material.

F-18

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
(9) Dividends
Dividends paid on the Company’s common stock for the nine months ended December 31, 2023 are as follows:

Decision

Cash dividends(millions of yen)

Appropriation
fromCash dividends
per share (yen)Record date

Effective date

March 31, 2023

June 2, 2023

The Board of Directors
on May 12, 2023

70,317Retained earnings

75.0

The Board of Directors
on October 27, 2023

74,144Retained earnings

80.0 September 30, 2023 November 27, 2023

Dividends paid on the Company’s common stock for the nine months ended December 31, 2022 are as follows:

Decision
The Board of Directors
on May 13, 2022
The Board of Directors
on October 28, 2022

Cash dividends

Appropriation

Cash dividends(millions of yen)fromper share (yen)Record date

Effective date

March 31, 2022

June 2, 2022

62,870Retained earnings

65.0

66,277Retained earnings

70.0 September 30, 2022 November 29, 2022

F-19

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
(10) Revenues(a) Disaggregation of revenue
The Company derives revenues primarily from contracts with customers.
The disaggregation of revenue attributable to each reportable segment and geographic area for the nine months ended
December 31, 2023 and 2022 are as follows.
Effective from April 1, 2023, the Company reclassified its reportable segments. Accordingly, figures for the nine months
ended December 31, 2022 have been restated on the basis of the reclassification. Details of the reclassification are described innote 4.
Millions of yen
2023
Overseas
Revenues
Subtotal

Total
Revenues

41,509640,211

1,823,248

729,636

341,991

1,873,793

2,128,452

193,711

143,761

26,502

1,163,081

2,203,868

395,538

305,639

100,80389,335891,315

1,164,384

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Others307,227

45,693

5,310

7,500

2,356

60,859368,086

Subtotal

3,058,779

1,746,998

1,222,390

1,158,178

501,6934,629,259

7,688,038

Corporate items & Eliminations(431,592)(23,771)(4,520)(7,316)(2,685)(38,292)(469,884)

Total

2,627,187

1,723,227

1,217,870

1,150,862

499,008

4,590,967

7,218,154

Japan

Asia

North
America

Europe

Other
Areas

Digital Systems & Services

1,183,037

168,706

253,518

176,478

Green Energy & Mobility

254,659

337,954464,212Connective Industries

1,040,787

799,107

Automotive Systems

273,069

Hitachi Construction Machinery
Hitachi Metals

Millions of yen
2022
Overseas
Revenues
Subtotal

Total
Revenues

38,612622,750

1,678,039

590,459

241,020

1,463,509

1,707,902

196,427

150,350

27,643

1,173,656

2,170,378

526,279

315,487

110,571

83,995

1,036,332

1,377,215

80,64083,04094,67180,460136,303

394,474

475,114

Hitachi Metals

323,193

181,280

283,606

41,547

18,100524,533

847,726

Others291,725

43,325

4,612

6,314

2,769

57,020348,745

Subtotal

3,332,845

2,121,426

1,460,064

1,142,342

548,442

5,272,274

8,605,119

Corporate items & Eliminations(459,668)(28,446)(1,747)(6,040)(422)(36,655)(496,323)

Total

2,873,177

2,092,980

1,458,317

1,136,302

548,020

5,235,619

8,108,796

Japan

Asia

North
America

Europe

Other
Areas

Digital Systems & Services

1,055,289

180,415

241,082

162,641

Green Energy & Mobility

244,393

307,851

324,179

Connective Industries

996,722799,236

Automotive Systems

340,883

Hitachi Construction Machinery

The Digital Systems & Services segment consists of Front Business, IT Services, and Services & Platforms, for which revenue
amounted to 745,025 million yen, 686,485 million yen and 722,436 million yen for the nine months ended December 31, 2023
and 665,453 million yen, 621,906 million yen and 697,681 million yen for the nine months ended December 31, 2022,
respectively (including intersegment transactions). Front Business and IT Services are operated mainly in Japan, and Services

F-20

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
& Platforms is operated mainly in Japan, North America and Europe.
The Company’s revenues include revenue recognized based on the pattern of the cost accrual arising from long-term projects.
Of the revenue recognized during the nine months ended December 31, 2023 and 2022, the amount of revenue recognizedbased on the pattern of the cost accrual arising from long-term projects was 1,567,034 million yen and 1,240,892 million yen,respectively.
(b) Information about satisfaction of performance obligations
The following is information about satisfaction of performance obligations related to major goods and services of eachreportable segment.
(Digital Systems & Services)
Front Business and IT Services primarily provide goods and services such as system integration, consulting and cloudservice. Services & Platforms primarily provides IT products and software.
These long-term projects in system integration, consulting and cloud service businesses provide goods and services
according to customers’ specifications over a specified period of time, and revenue is recognized mainly based on thepattern of the cost accrual (the progress of the project mostly based on the cost incurred relative to the estimated total cost)or the passage of time as performance obligations are satisfied over time. Many of the contracts require payments based on
milestones, and in some cases, payments are made before performance obligations are satisfied.
In IT products and software businesses, revenue is recognized when control over the goods is transferred to customers as
performance obligations are satisfied at the point in time upon the completion or upon delivery of the goods. Mostly,
payment terms stipulate that the consideration is received within one year after the performance obligation is satisfied, andthere are no significant transactions in which payment terms include deferred payments, etc.
(Green Energy & Mobility and Connective Industries)
The Green Energy & Mobility segment includes revenue from businesses such as energy solutions and railway systems.
The energy solutions business is operated mainly in Asia, North America, and Europe. The railway systems business is
operated mainly in Europe. The Connective Industries segment includes revenue from businesses such as building systems,
smart life & ecofriendly systems, measurement and analytical systems, and industry & distribution solutions. The building
systems business is operated mainly in China, the smart life & ecofriendly systems business is operated mainly in Japan,
the measurement and analytical systems business is operated mainly in Japan, Asia, North America, and Europe, and theindustry & distribution solutions business is operated mainly in Japan.
Long-term projects related to contracts such as construction in these segments involve manufacturing and providing goods
based on customers’ specifications over a specified period of time. As performance obligations are satisfied over time,revenue is recognized mainly based on the pattern of the cost accrual (the progress of the project mostly based on the cost
incurred relative to the estimated total cost). In addition, these segments provide certain services promised in the contracts
such as maintenance throughout the duration of the contract, and recognize revenue over time based on the passage of time.
Many of the contracts require payments based on milestones, and, in some cases, payments are made before performanceobligations are satisfied.
Further, in the sale of elevators, home appliances, measurement and analytical systems, industrial equipment, etc. includedin the Connective Industries segment, revenue is recognized when control over the goods is transferred to customers as
performance obligations are satisfied at the point in time upon the completion or upon delivery of the goods. Mostly,
payment terms stipulate that the consideration is received within one year after the performance obligation is satisfied, andthere are no significant transactions in which payment terms include deferred payments, etc.
(Automotive Systems)
In the Automotive Systems segment, performance obligations are generally satisfied at a point in time upon completion or
upon delivery of the goods, and revenue is recognized when control over goods is transferred to customers. Mostly,
payment terms stipulate that the consideration is received within one year after the performance obligation is satisfied, andthere are no significant transactions in which payment terms include deferred payments, etc.

F-21

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
(11) Other Income and Expenses
The main components of other income and expenses for the nine months ended December 31, 2023 and 2022 are as follows:
Millions of yen
2023

2022

Net gain (loss) on sales and disposals of fixed assets

20,873

5,204

Impairment losses(7,879)(67,290)

Net gain (loss) on business reorganization and others

96,601

64,980Special termination benefits(5,233)(3,901)

Impairment losses are mainly recognized on property, plant and equipment, goodwill and other intangible assets. Net gain (loss)
on business reorganization and others includes gains and losses related to obtaining and losing control of investees and gains andlosses related to obtaining and losing significant influence over investees.
Restructuring charges (structural reform expenses) included in Other expenses for the nine months ended December 31, 2023 and2022 were 13,112 million yen and 71,191 million yen, respectively. Restructuring charges (structural reform expenses) include
impairment losses and special termination benefits. Impairment losses for the nine months ended December 31 2022 include
38,446 million yen in the Green Energy & Mobility segment, mainly consisting of 38,394 million yen in impairment losses on
goodwill in the power grids business due to the rise in discount rate following the significant rise in interest rates, etc. In addition,
the settlement loss of 51,185 million yen recognized for the nine months ended December 31, 2022 due to the change to the risksharing corporate pension plan introduced by subsidiaries on April 1, 2022, is included in Other expenses for the nine months
ended December 31, 2022. Details of this transaction are described in note 8.
(12) Financial Income and Expenses
The main components of financial income and expenses for the nine months ended December 31, 2023 and 2022 are as follows:
Millions of yen
2023

2022

Dividends received

4,012

7,791

Exchange gain (loss)

36,732(9,388)Dividends received for the nine months ended December 31, 2023 and 2022 are from financial assets measured at fair value
through other comprehensive income.

F-22

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
(13) Earnings Per Share (EPS) Information
The calculations of basic and diluted EPS attributable to Hitachi, Ltd. stockholders for the nine months ended December 31, 2023
and 2022 are as follows:
Nine months ended December 31
Number of shares
2023
Weighted average number of shares on which basic EPS is calculated

2022

930,695,736

951,926,474

Stock options

387,620

417,340

Restricted stock

648,446

560,466

Restricted stock units

27,73935,727

931,759,541

952,940,007

Effect of dilutive securities

Number of shares on which diluted EPS is calculated

Millions of yen
2023

2022

Net income attributable to Hitachi, Ltd. stockholders
Basic
Effect of dilutive securities
Diluted

445,092

292,232--

445,092

292,232
Yen

2023

2022

EPS attributable to Hitachi, Ltd. stockholders
Basic478.24306.99Diluted477.69306.66F-23

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
The calculations of basic and diluted EPS attributable to Hitachi, Ltd. stockholders for the three months ended December 31, 2023
and 2022 are as follows:
Three months ended December 31
Number of shares
2023
Weighted average number of shares on which basic EPS is calculated

2022

926,274,565

939,139,584

Stock options

387,620

417,340

Restricted stock

655,410525,766

Restricted stock units

32,19824,216927,349,793

940,106,906

Effect of dilutive securities

Number of shares on which diluted EPS is calculated

Millions of yen
2023

2022

Net income attributable to Hitachi, Ltd. stockholders
Basic
Effect of dilutive securities
Diluted235,989

119,717--

235,989

119,717
Yen

2023

2022

EPS attributable to Hitachi, Ltd. stockholders
Basic254.77127.48

Diluted254.48127.34F-24

Notes to Condensed Quarterly Consolidated Financial Statements
December 31, 2023
(14) Contingencies
Litigation
In November 2017, a subsidiary in Japan received a complaint that was filed against three companies, namely a construction
company of a condominium complex, the subsidiary and a secondary subcontractor, by a contractee in Japan seeking
approximately 45.9 billion yen in compensation for expenses allegedly incurred arising from concerns over partial deficienciesof piling work during the construction phases of the condominium complex, which the subsidiary contracted as the primary
subcontractor. The compensation claim against these three companies was amended to approximately 51.0 billion yen in July
2018 and to approximately 50.5 billion yen in September 2022 by the contractee.
In relation to the aforementioned lawsuit, in April 2018, the subsidiary in Japan received a complaint that was filed against thesubsidiary and the secondary subcontractor, by the construction company of the condominium complex seeking approximately
49.6 billion yen in compensation for expenses allegedly incurred arising from the aforementioned lawsuit. In July 2018, thecompensation claim against these two companies was amended to approximately 54.8 billion yen by the construction companyof the condominium complex. Although the subsidiary in Japan will address these claims and explain its position, there can be
no assurance that it will not be held liable for any amounts claimed.
In December 2017, a subsidiary in Europe received a complaint filed by a customer in Europe seeking compensation forconsequential losses of 263 million euro (41,330 million yen) and interest allegedly incurred by performance defects of apower plant. As of December 31, 2023, the amount of compensation claimed by the customer was changed to 270 million euro
(42,428 million yen). Although the subsidiary in Europe will vigorously defend itself against this lawsuit, there can be noassurance that it will not be held liable for any amounts claimed.
The Company and its subsidiaries execute a number of business reorganizations, including mergers, acquisitions anddivestitures. Contracts for these reorganizations include clauses for transaction price adjustments subsequent to thereorganizations. There is a possibility products or services provided by the Company and its subsidiaries contain defects. As
the result of price adjustments, or in compensation for defects in products or services etc. there is a possibility that theCompany pays for any amounts.
Depending upon the outcome of the above legal proceedings, there may be an adverse effect on the consolidated financial
position or results of operations. Currently, the Company is unable to estimate the adverse effect, if any, of many of theseproceedings. The actual amount of fines, surcharge payments or any other payments resulting from these legal proceedings
may be different from the accrued amounts.
In addition to the above, the Company and its subsidiaries are subject to legal proceedings and claims which have arisen in theordinary course of business and have not been finally adjudicated. These actions when ultimately concluded and determined
will not, in the opinion of management, have a material adverse effect on the condensed quarterly consolidated financial
statements of the Company and subsidiaries.
(15) Approval of Condensed Quarterly Consolidated Financial Statements
The condensed quarterly consolidated financial statements were approved on February 9, 2024 by Keiji Kojima, President andCEO of the Company.

F-25

[Cover][Document Filed][Applicable Law]
[Filed with][Filing Date][Company Name][Company Name in English][Title and Name of Representative][Title and Name of CFO]
[Address of Head Office][Place Where Available for Public Inspection]

Confirmation Letter
Article 24-4-8, Paragraph 1 of the Financial Instruments and Exchange Act of Japan
Director, Kanto Local Finance Bureau
February 9, 2024
Kabushiki Kaisha Hitachi Seisakusho
Hitachi, Ltd.
Keiji Kojima, President & CEO
Yoshihiko Kawamura, Executive Vice President and Executive Officer
6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo
Tokyo Stock Exchange, Inc.
(2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)
Nagoya Stock Exchange, Inc.
(8-20, Sakae 3-chome, Naka-ku, Nagoya)A-1

1. Matters Related to Adequacy of Statements Contained in the Quarterly Report
Mr. Keiji Kojima, President & CEO, and Mr. Yoshihiko Kawamura, Executive Vice President and Executive Officer,
confirmed that statements contained in the Quarterly Report for the third quarter of the 155th fiscal year (from October 1, 2023 to
December 31, 2023) were adequate under the Financial Instruments and Exchange Act.
2. Special Notes
None.

A-2