FOR IMMEDIATE RELEASE

Hitachi Announces Consolidated Financial Results
For the First Quarter of Fiscal 2010
Tokyo, July 30, 2010 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced its
consolidated financial results for the first quarter of fiscal 2010, ended June 30, 2010.
Notes:1. All figures, except for the outlook for full year and the first half of fiscal 2010, were converted at
the rate of 88 yen to the U.S. dollar, the approximate exchange rate on the Tokyo Foreign Exchange
Market as of June 30, 2010.
2. Operating income (loss) is presented in accordance with financial reporting principles and practices
generally accepted in Japan.

- more --2-Summary
In millions of yen and U.S. dollars, except Net income (loss) attributable to Hitachi, Ltd. stockholders per share (6)and Net income (loss) attributable to Hitachi, Ltd. stockholders per American Depositary Share (7).
Three months ended June 30
Yen
U.S. Dollars(B)/(A)(millions)(millions)
X100
(%)
2010
2010 (B)2009 (A)
1. Revenues

1,892,901

2,152,566

114

24,461

2. Operating income (loss)(50,596)

88,475-1,005

3. Income (loss) before income taxes(80,828)

144,284-

1,640

4. Net income (loss)(90,767)

117,468-

1,335

5. Net income (loss) attributable to
Hitachi, Ltd.

(82,665)

86,058-9786. Net income (loss) attributable to
Hitachi, Ltd. stockholders per shareBasic(24.87)

19.06

-

0.22

(24.87)

17.80

-

0.20

(249)

191

-

2.17

(249)

178

-

2.02

Diluted7. Net income (loss) attributable to Hitachi, Ltd.
stockholders per ADS (representing 10 shares)
Basic
DilutedNotes: 1. The Company's consolidated financial statements are prepared based on U.S.GAAPs.
Notes: 2. Operating income (loss) is presented in accordance with financial reporting principles and practices generally accepted in Japan.
Notes: 3. The figures are for 882 consolidated subsidiaries, including Variable Interest Entities, and 162 equity-method affiliates.
Notes: 3. Consolidated trust accounts are not included into the figures of consolidated subsidiaries.

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1. Qualitative Information Concerning Consolidated Business Results(1) Summary of Fiscal 2010 First-Quarter Consolidated Business Results
Three months ended June 30, 2010
Yen
(billions)Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

2,152.5

14%

24,461

Operating income

88.4

139.0

1,005

Income before income taxes

144.2

225.1

1,640

Net income

117.4

208.2

1,335

Net income attributable to Hitachi, Ltd.

86.0

168.7

978

Revenues

During the first quarter of fiscal 2010, the global economy generally showed a moderate recovery
trend, driven by growth in China and other emerging nations, in addition to economic recovery in
the U.S..
China’s real GDP growth rate in the April-June quarter remained high, rising 10.3% year overyear. However, there are concerns about the economic impact of shifting to a more flexible
exchange rate system for the yuan and government measures to prevent the economy fromoverheating. The U.S., meanwhile, moved onto a relatively stable recovery despite the fact that
employment and income conditions remained lackluster, the recovery in consumer spending andcapital expenditures waned and benefits of economic stimulus measures dissipated. In Europe,
there are concerns about the economic impact of fiscal austerity measures by governments in theregion.
In Japan, in addition to external demand underpinned by strong Asian economies, the economy
showed some encouraging signs in internal demand, as government measures drove improved
personal consumption and the fall in capital expenditures tapered off. However, the outlook
remains unclear due to the structural problems such as ongoing yen appreciation and a faltering
share market, coupled with soft employment and income conditions, the government’s fiscal
deficit and others.
Hitachi’s consolidated revenues for the first quarter were 2,152.5 billion yen, up 14% year overyear. Significant year-over-year increases were recorded mainly in the High Functional Materials& Components, Automotive Systems, Electronic Systems & Equipment, and Components &Devices segments in line with recovering demand in automotive- and electronics-related fields.
Overseas revenues increased 24% year over year, to 979.3 billion yen largely due to a global
recovery in demand.
Hitachi posted consolidated operating income of 88.4 billion yen, representing a 139.0 billion yen
turnaround year over year. This much improved result was attributable to higher revenues, which
led to a large improvement in the High Functional Materials & Components and Components &Devices segments and all segments posted profits.
Hitachi also recorded net other income of 55.8 billion yen, an improvement of 86.0 billion yen
from the net other deductions recorded in the corresponding period of the previous fiscal year,
despite recording exchange losses resulting from the yen’s appreciation. The improvement
reflected in part the recording of gains on the sale of marketable securities resulting from thetransfer of some shares of IPS Alpha Technology, Ltd. to Panasonic Corporation.
As a result of the above, Hitachi recorded income before income taxes of 144.2 billion yen, an- more --4-

improvement of 225.1 billion yen year over year. After income taxes of 26.8 billion yen, Hitachi
posted net income of 117.4 billion yen, 208.2 billion yen better year over year. After deducting
net income attributable to noncontrolling interests of 31.4 billion yen, Hitachi posted net income
attributable to Hitachi, Ltd. of 86.0 billion yen, a 168.7 billion yen improvement on the previous
fiscal year’s first quarter.

(2) Revenues and Operating Income by Segment
Results by segment were as follows:[Information & Telecommunication Systems]
Three months ended June 30, 2010
Yen
(billions)
Revenues

Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

348.9

(3%)

3,966

0.1

(5.1)

2

Operating income

The segment recorded revenues of 348.9 billion yen, a decrease of 3% year over year, with
software and services, and hardware both recording lower revenues due to ongoing reduction for
IT investment in Japan. A bright spot was strong revenues in storage solutions, particularly foroverseas markets.
Segment operating income dropped 5.1 billion yen, to 0.1 billion yen. This was the result of lower
earnings in both software and services, and hardware because of declines in revenues.
[Power Systems]
Three months ended June 30, 2010
Yen
(billions)
Revenues

Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

177.8

5%

2,021

4.6

3.1

53

Operating income

Segment revenues rose 5% year over year, to 177.8 billion yen. One reason was higher sales ofnuclear power generation systems due to the construction of new plants and preventative
maintenance in Japan. Another factor was strong sales of coal-fired thermal power generation
systems overseas.
Segment operating income improved 3.1 billion yen to 4.6 billion yen in line with higher
revenues.

- more --5-[Social Infrastructure & Industrial Systems]
Three months ended June 30, 2010
Yen
(billions)
Revenues

Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

231.6

(6%)

2,632

2.5

6.4

29

Operating income

The segment recorded revenues of 231.6 billion yen, down 6% year over year, reflecting lower
sales of plant-related equipment and construction, and elevators and escalators. However, control
systems for the industrial field and certain other products and services recorded solid growth.
Segment operating income improved 6.4 billion yen year over year, to 2.5 billion yen, despite theimpact of lower revenues. The improved earnings were attributable to higher earnings onelevators and escalators resulting from cost-cutting and other measures.
[Electronic Systems & Equipment]
Three months ended June 30, 2010
Yen
(billions)
Revenues

Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

250.2

23%

2,844

5.3

17.2

61

Operating income

Segment revenues rose 23% year over year, to 250.2 billion yen, the result of increased sales
mainly of semiconductor-related manufacturing equipment on the back of rebounding capital
expenditures in the electronics field, coupled with strong sales of medical electronics equipment.
Segment operating income improved 17.2 billion yen to 5.3 billion yen due to higher sales ofsemiconductor-related manufacturing equipment and other products.
[Construction Machinery]
Three months ended June 30, 2010
Yen
(billions)
Revenues

Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

162.0

27%

1,841

6.9

8.5

79

Operating income

Segment revenues climbed 27% year over year, to 162.0 billion yen. In addition to growth inoverseas sales of hydraulic excavators and other products, especially to China, the higher segment
revenues reflected the impact of making Indian company Telco Construction Equipment Co., Ltd.
a consolidated subsidiary in March 2010.
Segment operating income improved 8.5 billion yen year over year, to 6.9 billion yen due to thehigher revenues.

- more --6-[High Functional Materials & Components]
Three months ended June 30, 2010
Yen
(billions)Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

345.5

26%

3,926

Operating income

26.2

29.4

298

Segment revenues rose 26% year over year, to 345.5 billion yen, reflecting strong results at
Hitachi Metals, Ltd., Hitachi Chemical Co., Ltd. and Hitachi Cable, Ltd. due to a global recovery
in demand for automotive components and electronics-related products.
Segment operating income improved 29.4 billion yen year over year, to 26.2 billion yen. In
addition to higher revenues, this was due to the benefits of business structure reform measuresinitiated in the previous fiscal year.
[Automotive Systems]
Three months ended June 30, 2010
Yen
(billions)
Revenues

Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

175.7

38%

1,997

4.2

17.3

48

Operating income

Segment revenues increased 38% year over year, to 175.7 billion yen on the strength of a global
recovery in demand brought about by government programs in certain countries to support
vehicle sales.
The segment recorded operating income of 4.2 billion yen, a year-over-year improvement of 17.3
billion yen on account of improved capacity utilization in line with recovering demand, and thebenefits of business structural reforms.
[Components & Devices]
Three months ended June 30, 2010
Yen
(billions)Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

201.9

21%

2,295

Operating income

16.7

27.0

191

Segment revenues rose 21% year over year, to 201.9 billion yen due to strong sales of HDDs,
reflecting robust demand for use in PCs and servers.
Operating income for the segment improved 27.0 billion yen year over year, to 16.7 billion yen,
as earnings improved in HDD operations in line with rising sales.
Note: HDD operations are conducted by Hitachi Global Storage Technologies (Hitachi GST), which has a
December 31 fiscal year-end, different from Hitachi’s March 31 year-end. Hitachi’s results for the threemonths ended June 30, 2010 include operating results of Hitachi GST for the three months ended March
31, 2010.

- more --7-[Digital Media & Consumer Products]
Three months ended June 30, 2010
Yen
(billions)
Revenues

Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

256.6

21%

2,917

7.1

20.6

81

Operating income

The segment recorded a 21% increase in revenues year over year, to 256.6 billion yen. Opticaldisk drive-related products recorded strong sales largely due to increasing PC demand. Higher
sales of flat-panel TVs and other products also boosted revenues, as did strong sales of air
conditioners, particularly overseas in China and other markets.
The segment recorded operating income of 7.1 billion yen, an improvement of 20.6 billion yen
from the first three months of fiscal 2009. In addition to benefits from business structural reforms
in flat-panel TVs and other areas, higher sales led to increased earnings in optical disk
drive-related products, air conditioners and other businesses.
Note: The optical disk drive operations are conducted by Hitachi-LG Data Storage, Inc. (HLDS), which has a December
31 fiscal year-end, different from Hitachi’s March 31 year-end. Hitachi’s results for the three months ended June 30,2010 include operating results of HLDS for the three months ended March 31, 2010.

[Financial Services]
Three months ended June 30, 2010
Yen
(billions)Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

94.2

5%

1,071

Operating income

5.1

3.0

59

The segment reported a 5% year-over-year increase in revenues, to 94.2 billion yen, largely due tohigher revenues at Hitachi Capital Corporation due to factors such as increased transaction
volumes and the sale of assets with expired lease terms.
Operating income for the segment improved 3.0 billion yen year over year, to 5.1 billion yen, inline with higher revenues and the benefits of cost-cutting and other measures at Hitachi Capital.
[Others]
Three months ended June 30, 2010
Yen
(billions)
Revenues

Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

179.9

2%

2,045

6.0

4.0

68

Operating income

The segment recorded a 2% rise in revenues year over year, to 179.9 billion yen due to robust
growth in revenues at Hitachi Transport System, Ltd. on expansion of third-party logistics
solutions.
Segment operating income improved 4.0 billion yen year over year, to 6.0 billion yen, mainly due- more --8-

to higher earnings at Hitachi Transport System.
(3) Revenues by Market
Three months ended June 30, 2010
Yen
(billions)Japan

Year-over-year% change

U.S. dollars(millions)

1,173.2

7%

13,332

Outside Japan

979.3

24%

11,129

Asia

502.9

41%

5,716

North America

193.0

12%

2,193

Europe

187.6

5%

2,132

Other Areas

95.7

14%

1,088

Revenues in Japan increased 7% year over year, to 1,173.2 billion yen. This increase reflected
mainly higher revenues in the High Functional Materials & Components, Automotive
Systems, and Digital Media & Consumer Products segments in line with recovering demandin the automotive and electronics-related fields.
Outside Japan revenues increased 24% year over year, to 979.3 billion yen. In addition tomuch higher sales in the Construction Machinery Segment, mainly to China, the Electronic
Systems & Equipment, Components & Devices, High Functional Materials & Components
and Automotive Systems segments posted strong revenues.
As a result, the ratio of overseas revenues to consolidated revenues was 45%, 3 percentage
points higher year over year.
(4) Capital Investment, Depreciation and R&D Expenditures
Capital investment on a completion basis, excluding leasing assets, decreased 27% year over year,
to 46.9 billion yen, as Hitachi continued to strictly select investments in general. There was,however, an increase in capital investment in the Electronic Systems & Equipment Segment.
Depreciation, excluding leasing assets, decreased 16% year over year, to 75.1 billion yen,primarily due to the continued strict selection of capital investments.
R&D expenditures increased 7%, to 92.5 billion yen, which corresponded to 4.3% of consolidated
revenues, due mainly to further R&D investment to strengthen the Social Innovation Business.

- more --9-

2. Financial Position(1) Financial Position
As of June 30, 2010
Yen
(billions)

Change fromMarch 31, 2010

U.S. dollars(millions)

Total assets

9,458.7

494.3

107,486

Total liabilities

7,123.6427.0

80,951

Interest-bearing debt

3,092.2

725.1

35,139Total Hitachi, Ltd. stockholders’ equity

1,354.1

69.4

15,388

Noncontrolling interests

980.9

(2.2)

11,147

Total Hitachi, Ltd. stockholders’equity ratio

14.3%

0.0%

-

D/E ratio (including noncontrolling interests)*1

1.32 times

0.28 point increase-

D/E ratio (including noncontrolling interests)*2

1.06 times

0.02 point increase-*1: Including liabilities (current and noncurrent) associated with the consolidation of securitization entities.
*2: Excluding liabilities (current and noncurrent) associated with the consolidation of securitization entities.

Total assets as of June 30, 2010 increased 494.3 billion yen from March 31, 2010 to 9,458.7
billion yen. This resulted from the recording of financial assets that had been transferred off thebalance sheet to securitized entities in accordance with the application of new U.S.GAAP
accounting standards effective from April 1, 2010. Interest-bearing liabilities increased 725.1
billion yen to 3,092.2 billion yen due to the recording of liabilities associated with theconsolidation of securitized entities. Stockholders’ equity increased 69.4 billion yen to 1,354.1
billion yen from March 31, 2010 due to the improvement in net income attributable to Hitachi,Ltd. As a result, the total Hitachi, Ltd. stockholders’ equity ratio was 14.3%, the same as at March
31, 2010. The debt-to-equity ratio, including noncontrolling interests, increased 0.28 points, to1.32. Excluding the impact of adopting new accounting standards, the debt-to-equity ratio,
including noncontrolling interests, increased 0.02 points to 1.06.
(2) Cash Flows
Three months ended June 30, 2010
Yen
(billions)Year-over-yearchangeU.S. dollars(millions)

Cash flows from operating activities

131.5

144.2

1,494

Cash flows from investing activities(79.5)

71.8

(904)

Free cash flows

51.9

216.1

590

Cash flows from financing activities

26.5

107.4

302

Operating activities provided net cash of 131.5 billion yen, a year-over-year increase of 144.2
billion yen due to the marked improvement in net income and improvements in efficiently
using working capital.
Investing activities used net cash of 79.5 billion yen, 71.8 billion yen less year over year,- more -- 10 -

mainly due to the strict selection of capital expenditures and sale of certain shareholdings.
Free cash flows, the sum of cash flows from operating and investing activities, was 51.9
billion yen.
Financing activities provided net cash of 26.5 billion yen, a 107.4 billion yen change from thenet cash used in the corresponding quarter of the previous fiscal year. This was due to anincrease in short-term debt due to the issuance of commercial paper by a subsidiary and otherfactors.
The net result of the above items was an increase of 78.1 billion yen in cash and cash
equivalents, to 655.7 billion yen
Free cash flows increased due to the consolidation of securitized entities in accordance with theapplication of new U.S. GAAP accounting standards effective from April 1, 2010. However, theapplication of these standards had almost the same effect on cash outflows in financing activities.
3. Outlook for Six Months Period Ending September 30, 2010
The first half of fiscal 2010
ending September 30, 2010

Yen
(billions)
Revenues

Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

4,400.0

7%

51,764

Operating income

170.0

194.7

2,000

Income before income taxes

200.0

310.1

2,352

Net Income

147.0

285.8

1,729

Net Income attributable to Hitachi, Ltd.

100.0

233.2

1,176

Note: First half of fiscal 2010 outlook figures were converted using 85 yen to the U.S. dollar; the same rate wasused for fiscal 2010 consolidated financial forecasts announced on May 11, 2010.

In terms of the overall business environment going forward, the outlook for the Japanese
economy is still uncertain despite being on the road to recovery supported by strong Asian
economies. The uncertainty is being created by the yen’s ongoing appreciation and the impact thatthe unwinding of stimulus measures will have on the economy. While the Chinese economy isexpected to maintain a high growth rate, the global economy as a whole remains uncertain,
including lackluster European economies due to fiscal austerity measures and a continuing
slowing U.S. economy where employment and personal income conditions remain weak. Thisoverall uncertainty is expected to continue for the time being.
Under these circumstances, Hitachi has revised consolidated forecasts for the first half of fiscal
2010 issued on May 11, 2010 when it announced its financial results for fiscal 2009. Details areshown in the table above. Regarding full-year forecasts, Hitachi has not revised its previous
forecasts at this time for the full year because of uncertainty surrounding the businessenvironment in the second half of fiscal 2010. This uncertainty includes trends in the global
economy, especially in the U.S. and Europe, foreign currency fluctuations, fluctuations in raw
material prices, and the impact of unwinding economic stimulus measures such as the Eco-Points
program and tax breaks on environmentally friendly products.
Projections for the second quarter of fiscal 2010 assume exchange rates of 85 yen to the U.S.
- more -- 11 -

dollar and 110 yen to the euro.
Other(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries causingchanges in scope of consolidation)
None(2) Application of simple accounting treatment and/or specific accounting treatment in preparing
the quarterly consolidated financial statements
Yes(3) Changes in accounting principles, procedures and presentation methods for preparing
quarterly consolidated financial statements.
Yes
For details, please see “2. Changes in matters concerning accounting standards” on page 16.
Cautionary Statement
Certain statements found in this document may constitute “forward-looking statements” as defined in the
U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect
management’s current views with respect to certain future events 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 whichindicate future events and trends may identify “forward-looking statements.” Such statements 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 “forward-looking statements” are based upon current assumptions of future events
which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,”
as such statements speak only as of the date of this document.
Factors that could cause actual results to differ materially from those projected or implied in any“forward-looking statement” and from historical trends include, but are not limited to:•

economic conditions, including consumer spending and plant and equipment investments in Hitachi’smajor markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in
the major industrial sectors which Hitachi serves, including, without limitation, the information,
electronics, automotive, construction and financial sectors;•

exchange rate fluctuations for the yen and other currencies in which Hitachi makes significant sales orin which Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and the
euro;

•

uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term
financing;•

uncertainty as to general market price levels for equity securities in Japan, declines in which may
require Hitachi to write down equity securities that it holds;•

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

increased commoditization of information technology products and digital media-related products andintensifying price competition for such products, particularly in the Components & Devices and theDigital Media & Consumer Products segments;•

uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new- more -- 12 -

technology on a timely and cost-effective basis and to achieve market acceptance for such products;•

rapid technological innovation;•

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

fluctuations in the price of raw materials including, without limitation, petroleum and other materials,
such as copper, steel, aluminum and synthetic resins;•

fluctuations in product demand and industry capacity;•

uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact offluctuations in product demand, exchange rates and/or price of raw materials;•

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 restructuring efforts to improve management efficiency by divesting orotherwise exiting underperforming businesses and to strengthen competitiveness and other cost
reduction measures;•

general socio-economic and political conditions and the regulatory and trade environment of Hitachi’smajor markets, particularly Japan, Asia, the United States and Europe, including, without limitation,
direct or indirect restrictions by other nations on imports, or differences in commercial and businesscustoms including, without limitation, contract terms and conditions and labor relations;•

uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may notcontrol, with other corporations in the design and development of certain key products;•

uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights,
particularly those related to electronics and data processing technologies;•

uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings ofwhich the Company, its subsidiaries or its equity method affiliates have become or may become
parties;•

the possibility of incurring expenses resulting from any defects in products or services of Hitachi;•

the possibility of disruption of Hitachi’s operations in Japan by earthquakes or other natural disasters;•

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

uncertainty as to the accuracy of key assumptions Hitachi uses to valuate its significant employee
benefit related costs; and•uncertainty as to Hitachi’s ability to attract and retain skilled personnel.

The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic
filings with the U.S. Securities and Exchange Commission and in other materials published by Hitachi.

- more -- 13 -

Consolidated Statements of Operations
Three months ended June 30
Yen(B)/(A)(millions)
X100(%)
2009 (A)2010 (B)U.S. Dollars(millions)
2010

Revenues

1,892,901

2,152,566

114

24,461

Cost of sales

1,460,255

1,594,464

109

18,119483,242469,627

97

5,337(50,596)

88,475

-

1,005

7,452

77,337(Interest and dividends)

5,552

5,381

(Other)

1,900

71,956

Other deductions

37,684

21,52857245(Interest charges)

7,034

6,306

90

72

(Other)30,65015,22250

173

Income (loss) before income taxes(80,828)

144,284

-

1,640

9,939

26,816270

305(90,767)

117,468-

1,335

Less: Net income (loss) attributable tononcontrolling interests(8,102)

31,410-357

Net income (loss) attributable to
Hitachi, Ltd.

(82,665)

86,058-

978

Selling, general andadministrative expenses
Operating income (loss)

Other income

Income taxes

Net income (loss)- more -

97
-

879
61
818

- 14 Consolidated Balance Sheets
Yen(millions)
As of March 31,

As of June 30,2010 (A)2010 (B)

Total Assets
Current assets
Cash and cash equivalents
Short-term investments
Trade receivables
Notes
Accounts
Investments in leases
Current portion of financial assets transferred
to consolidated securitization entities
Inventories
Other current assets
Investments and advances
Property, plant and equipment
Intangible assets
Financial assets transferred toconsolidated securitization entities
Other assets
Total Liabilities and Equity
Current liabilities
Short-term debt and current portionof long-term debt
Current portion of non-recourse borrowingsof consolidated securitization entities
Trade payables
Notes
Accounts
Advances received
Other current liabilities
Noncurrent liabilities
Long-term debt
Non-recourse borrowings of consolidated
securitization entities
Retirement and severance benefits
Other liabilities
Total equity
Total Hitachi, Ltd. stockholders' equity
Common stock
Capital surplus
Legal reserve and retained earnings
Accumulated other comprehensive loss
(Foreign currency translation adjustments)(Pension liability adjustments)(Net unrealized holding gain on
available-for-sale securities)(Cash flow hedges)
Treasury stock
Noncontrolling interests(B)-(A)

U.S. Dollars(millions)
As of June 30,

2010

8,964,464
4,775,197
577,584
53,5759,458,768
4,978,353
655,769
52,578494,304
203,156
78,185(997)

107,486
56,572
7,452
597

104,353
2,138,139
194,108

121,327
16,974
1,868,528 (269,611)
201,049
6,941

1,379
21,233
2,285-

244,852

244,852

2,782

1,222,077
485,361
712,9932,219,804
518,050

1,339,885
494,365
629,205
2,169,081
518,966

117,808
9,004(83,788)(50,723)
916

15,226
5,618
7,150
24,6495,897-

413,749

413,749

4,702

738,420

749,414

10,9948,516

8,964,464
3,931,203

9,458,768
4,048,312

494,304
117,109

107,486
46,004755,181

888,051

132,870

10,091

249,210249,210

2,832

24,073(1,664)
1,170,991 (58,555)
446,380
61,181
1,269,607 (265,933)
3,075,372 309,956
1,598,012 (13,950)

274
13,307
5,073
14,42734,947
18,159-25,737
1,229,546
385,199
1,535,540
2,765,416
1,611,962-

357,012357,012

4,057

905,183
248,271
2,267,845
1,284,658
408,810620,577
713,479(432,057)(182,783)(272,410)

890,167
230,1812,335,084
1,354,119
408,813603,744791,805(448,968)(201,222)(255,795)(15,016)(18,090)
67,23969,461
3(16,833)
78,326(16,911)(18,439)
16,615

10,1162,616
26,535
15,388
4,646
6,861
8,998
(5,102)(2,287)(2,907)25,564(2,428)(26,151)
983,187

10,165(2,116)(1,275)980,965(15,399)
312
24,876(2,222)

116
(24)
(14)
11,147

Note: Figures of Intangible assets and Other liabilities as of March 31, 2010 have been restated since the fair value measurement related to abusiness combination recorded in March 2010 was finalized in this quarter.

- more -- 15 -

Consolidated Statements of Cash Flows
Three months ended June 30
Yen
U.S. Dollars(millions)(millions)
2009
2010
2010
Cash flows from operating activities
Net income (loss)(90,767)

117,468

1,335

Depreciation

109,286

95,097

1,081

Amortization

27,14727,556

313

Adjustments to reconcile net income (loss) to net cash
provided by operating activities

Gain on sale of investments in securities and other(1,214)(70,486)(801)

Decrease in receivables

316,041

283,584

3,223

Increase in inventories(10,204)(143,976)(1,636)

Decrease in payables(211,477)(38,822)

(441)

Other
Net cash provided by (used in) operating activities(151,606)(12,794)(138,919)
131,502(1,579)1,494

Purchase of property, plant and equipment, net(83,493)(45,722)(520)

Purchase of intangible assets, net(17,253)(21,418)(243)

Purchase of tangible assets and software to be leased, net
Proceeds from sale (purchase) of investments in securities
and shares of consolidated subsidiaries resulting indeconsolidation, net(71,847)(62,394)(709)(7,865)

17,877203

Collection of investments in leases

33,86870,861805

Other(4,854)(38,771)(441)(151,444)(79,567)(904)(67,606)

38,098

433

(124)

(6)

(0)

(12,640)(7,825)

(89)

(439)

(3,673)(42)(80,809)

26,594302‐

12,030137

5,039(12,374)(141)

Net increase (decrease) in cash and cash equivalents(240,008)

78,185888

Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

807,926
567,918

577,584
655,769

6,563
7,452

Cash flows from investing activities

Net cash used in investing activities
Cash flows from financing activities
Increase (decrease) in interest-bearing debt
Dividends paid to stockholders
Dividends paid to noncontrolling interests
Other
Net cash provided by (used in) financing activities
Effect of consolidation of securitization entities upon
initial adoption of new accounting guidances
Effect of exchange rate changes on cash and cash equivalents- more -- 16 -

Segment Information(1) Business Segments
Three months ended June 30
Yen(B)/(A)(millions)
X100(%)
2009 (A)2010 (B)Information & Telecommunication
Systems
Power Systems
Social Infrastructure &Industrial Systems
Electronic Systems & Equipment
Construction Machinery

Revenues

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

359,640
17%
169,3498%
246,82211%
204,2599%
127,9326%
273,38913%
127,5736%
167,418
8%
212,17610%
90,1094%
176,532
8%
2,155,199
100%

348,976
14%
177,8187%
231,60610%
250,27010%
162,026
7%
345,521
14%
175,778
7%
201,9508%
256,69311%
94,235
4%
179,9218%
2,424,794
100%(262,298)
1,892,901

Notes 1: Revenues by business segment include intersegment transactions.
2: The Company has changed the business segment classification starting from Fiscal 2009.
Figures of busiess segments is based on the reclassification.

- more -U.S. Dollars(millions)
2010

97

3,966

105

2,021

94

2,632

123

2,844

127

1,841

126

3,926

138

1,997

121

2,295

121

2,917

105

1,071

102

2,045

113

27,554(272,228)-(3,094)

2,152,566

114

24,461

- 17 -

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

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

Total

Three months ended June 30
Yen(B)/(A) U.S. Dollars(millions)
X100(millions)2009 (A)2010 (B)
(%)
2010
5,297
184
3
2
0%
1,480
4,639
313
53
6%
(3,875)2,528
29
3%(11,810)
5,391
61
6%
(1,652)6,940
79
8%(3,245)
26,208298
31%(13,082)
4,257
48
5%
(10,219)
16,799191
20%(13,533)
7,114
81
8%
2,095
5,153
246
59
6%
1,922
6,002
312
68
7%
(46,622)
85,215968
100%(3,974)

3,260

-

37

(50,596)

88,475-

1,005

Note: The Company has changed the business segment classification starting from Fiscal 2009.
Figures of business segments is based on the reclassification.

- more -- 18 -

(2) Revenues by Market
Three months ended June 30
Yen(B)/(A)(millions)
X100(%)
2009 (A)2010 (B)Japan
Asia
North America
EuropeOther Areas
Outside Japan
Total

1,100,667
58%
357,052
19%
172,3629%
178,80910%
84,011
4%
792,234
42%
1,892,901
100%

###

1,173,224
55%
502,97423%
193,0179%
187,6459%95,706
4%
979,34245%
2,152,566
100%

U.S. Dollars(millions)
2010

107

13,332

141

5,716

112

2,193

105

2,132

114

1,088

124

11,129114

24,461

July 30,2010
Hitachi, Ltd.

Supplementary Information for the First Quarter ended June 30, 2010
1. Summary(Consolidated basis)
2009
Three months ended June 30(A)
1,892.9(50.5)(2.7)(80.8)(90.7)(82.6)
97(1.4)

Revenues*1
Operating income (loss)*1
Percentage of revenues
Income (loss) before income taxes*1
Net income (loss)*1
Net income (loss) attritutable to Hitachi,
Average exchange rate (yen / U.S.$)Net interest and dividends*1*1

2010
Three months ended June 30(B)(B)/(A)X100
114%
2,152.5
88.4
－
4.1
－
144.2
－
117.4
－
86.0
－
92
－
(0.9)
－

Billions of yen

As of March 31, 2010

As of June 30, 2010

631.1

708.3

2,367.1

3,092.2

2,367.1

2,086.0

1.04

1.32

1.04

1.06

Number of employees
Japan
Overseas359,746
230,948
128,798

359,184
224,851
134,333

Number of consolidated
subsidiaries (Including
Variable Interest Entities)

900

882

365
535

353
529

Cash & cash equivalents, Short-term investments(billions of yen)Interest-bearing debt*2 (billions of yen)Interest-bearing debt*3 (billions of yen)
D/E Ratio (Including Noncontrolling interests)(times)*2

D/E Ratio (Including Noncontrolling interests)(times)*3

Japan
Overseas*2

Including liabilities (current and noncurrent) associated with the consolidation of securitization entities.

*3

Excluding liabilities (current and noncurrent) associated with the consolidation of securitization entities.

2. Consolidated Overseas Revenues by Business Segment *4*5

Information & Telecommunication Systems

Power Systems
Social Infrastructure & Industrial Systems
Electronic Systems & Equipment

Construction Machinery
High Functional Materials & Components

Automotive Systems
Components & Devices
Digital Media & Consumer Products

Financial Services
OthersSubtotal
Eliminations & Corporate items
Total(Billions of yen)

2009
Three months ended June 30
(A)
85.4
68.0
59.5
101.6
94.7
107.0
52.7
117.9
101.7
12.3
18.1
819.4
(27.2)
792.2

2010
Three months ended June 30(B)/(A)X100
(B)
93.4
109%
74.7
110%
94%
55.8
135%
137.2
129.3
137%
135.0
126%
75.9
144%
126%
149.0
124.0
122%
11.7
96%
123%
22.2
1,008.6
123%(29.3)
－
979.3
124%

*4

The Company has changed the business segment classification started from Fiscal 2009. Figures of busiess segments is based on the reclassification.

*5

Starting from current period, the figures, wich also includes previouse period, of Consolidated Overseas Revenues by Business Segment has changed to include inter segment transac- more --23. Consolidated Capital Investment by Busiess Segment (Completion basis, including leasing assets) *4(Billions of yen)

Information & Telecommunication Systems

Power Systems
Social Infrastructure & Industrial Systems
Electronic Systems & Equipment

Construction Machinery
High Functional Materials & Components

Automotive Systems
Components & Devices
Digital Media & Consumer Products

Financial Services
OthersSubtotal
Eliminations & Corporate items

Total
Internal use Assets
Leasing Assets

2010
Three months ended June 30(B)(B)/(A)X100
5.4
66%
2.8
33%
3.0
69%
3.1
119%
5.7
88%
11.4
88%
2.5
55%
8.3
93%
2.5
77%
86%
65.6
5.0
70%
115.7
81%
(1.5)
－
114.2
83%
46.9
73%
67.3
92%

2009
Three months ended June 30
(A)
8.3
8.5
4.4
2.6
6.5
13.0
4.6
8.9
3.3
76.1
7.1
143.8
(5.9)
137.8
64.3
73.4

4. Consolidated Depreciation by Business Segment *4
2009(Billions of yen)

2010

Three months ended June 30

Three months ended June 30

(A)

(B)

10.7
5.4
6.1
4.9
9.4
18.6
83
8.3
15.8
6.2
15.0
7.9
108.7
0.5
109.2
89.5
19.7

Information & Telecommunication Systems

Power Systems
Social Infrastructure & Industrial Systems
Electronic Systems & Equipment

Construction Machinery
High Functional Materials & Components

Automotive Systems
Components & Devices
Digital Media & Consumer Products

Financial Services
OthersSubtotal
Eliminations & Corporate items

Total
Internal use Assets
Leasing Assets(B)/(A)X100

5. Consolidated R&D Expenditure by Business Segment *4
2009(Billions of yen)

2010

Three months ended June 30

Three months ended June 30(A)
Information & Telecommunication Systems

Power Systems
Social Infrastructure & Industrial Systems
Electronic Systems & Equipment

Construction Machinery
High Functional Materials & Components

Automotive Systems
Components & Devices
Digital Media & Consumer Products

Financial Services
OthersCorporate items

Total
Percentage of revenues (%)

78%
81%
87%
68%
93%
92%
81%
84%
79%
100%
86%
87%
147%
87%
84%
101%

8.3
4.3
5.3
3.3
8.7
17.1
67
6.7
13.4
4.9
15.0
6.8
94.3
0.7
95.0
75.1
19.9

(B)

18.5
3.4
4.1
9.5
3.3
10.6
10.9
16.8
4.4
0.0
0.8
3.7
86.6
4.6

(B)/(A)X100

19.7
3.9
4.4
9.9
3.9
11.3
10.4
17.7
5.9
0.0
0.7
4.2
92.5
4.3

- more -

106%
116%
108%
104%
117%
106%
95%
105%
133%
134%
99%
113%
107%
－

-36. Information & Telecommunication Systems(1)Revenues and Operating Income *6
2009(Billions of yen)

2010

Three months ended
June 30

Three months ended June 30

(A)

(B)

Revenues
Software & Services
SoftwareServices
Hardware
Storage*7
Servers*8
PCs*9
Telecommunication
OthersOperating income
*3

*7
*8
*9

359.6
236.8
35.5
201.3
122.8
40.3
12.2
7.0
32.3
31.0
5.2

(B)/(A)X100

348.9
233.6
35.6
198.0
115.2
46.0
10.0
5.6
29.9
23.5
0.1

97%
99%
100%
98%
94%
114%
82%
80%
93%
76%
3%

Figures for each product exclude intra-segment transactions.
The Company has changed the business segment classification started from Fiscal 2009.
Figures for three months period ended June 30, 2009 has been restated to reflect the reclasification.
Figures for Storage include disk array subsystems, etc.
Figures for Servers include general-purpose computers, UNIX servers, etc.
Figures for PCs include PC servers, client PCs (only commercial use), etc.

(Billions of yen)

(2)Storage Solutions
2009

2010

Three months ended
June 30

Three months ended June 30(A)

Revenues

7. Hard Disk Drives

*11
*12

Three months ending
September 30

(A)

(B)

(C)

(D)

(D)/(A)X100

Jan. 2010 toMar. 2010(E)(Preliminary)(E)/(B)X100

Apr. 2010 toJun. 2010

Six months ending
September 30(F)(Preliminary)(F)/(C)X100

Jan. 2010 toJun. 2010

97.7

108.0

205.6

132.3

135%

138.4

128%

270.7

132%

Millions of
U.S. dollars

1,026

1,109

2,135

1,459

142%

1,504

136%

2,963

139%

Billions of
yen

(5.4)

(3.1)

(8.6)

19.7

―

17.1

―

36.8

―

Millions of
U.S. dollars

(57)

(32)

(89)

217

―

186

―

403

―

19,200
10,200
7,600
1,100
220
―

22,30011,700
8,700
1,200
440
220

41,50021,90016,400
2,300
660
220

26,50015,700
7,800
1,500
780
800

138%
154%
102%
130%
360%
―

28,20016,600
8,200
1,900
860
660

126%
141%
94%
157%
194%
295%

54,70032,30016,000
3,400
1,650
1,460

132%
147%
98%
144%
248%
―

2.5-inch
3.5-inchServers
Emerging
External HDD*10

Three months ended
June 302010
Six months ended
September 30

Billions ofyen

Shipments (thousand units)
Consumer andCommercial

107%

2009
Three months ended Three months ended
June 30
September 30

Jan. 2009 to Apr. 2009 to Jan. 2009 toJun. 2009
Mar. 2009
Jun. 2009

Shipment Period

Operatingincome(loss)(B)/(A)X100

74.0*10*11

Period recorded forconsolidated accounting
purposes

Revenues

(B)

69.0

*12

The Hard Disk Drive operations are conducted by Hitachi Global Storage Technologies (Hitachi GST), which has a December 31 fiscal
year-end, different from Hitachi's March 31 year-end. Hitachi's results for the three months endedJune 30, 2010 include the operating results ofHitachi GST for the three months ended March 31, 2010.
Hitachi GST's operating currency is U.S. dollar. Yen figures include yen / dollar conversion fluctuation.
Shipment less than 100,000 units have been rounded, with the exception of Emerging and External HDD, where shipment less than 10,000 units have been rounded.

###