Outline of Consolidated Financial Results
for the First Quarter ended June 30, 2013
July 30, 2013

Hitachi, Ltd.

Outline of Consolidated Financial Results
for the First Quarter ended June 30, 2013

July 30, 2013

Contents1.
2.
3.

Outline of Consolidated Financial Results for
the First Quarter ended June 30, 2013
Outlook for the First Half of Fiscal 2013
Toward Achieving“2015 Mid-term Management Plan”

Copyright © Hitachi, Ltd. 2013. All rights reserved.

2

1-1. Financial Results Highlights

Decreased 2% year over year

Revenues

 Lower in the Power Systems, Construction Machinery and Electronic
Systems & Equipment segments, etc.

Decreased 8.0 billion yen year over year

Operating income Declined in the Electronic Systems & Equipment, Power Systems,
and Construction Machinery segments, etc.

EBIT

Increased 6.3 billion yen year over year

(Earnings before interest and taxes) *1

 Due to a result of foreign exchange gains as well as improved equity
in net loss of affiliated companies, etc.

Net income attributable to
Hitachi, Ltd. stockholders

Increased 3.7 billion yen year over year

Total Hitachi, Ltd.
stockholders’ equity ratio Profitable for 15 consecutive quarters

Up 0.4 of a point from March 31, 2013

(Manufacturing, Services and Others)Core free cash flows*2(Manufacturing, Services and Others)

Increased 61.6 billion yen year over year

*1 Defined income before income taxes less interest income plus interest charges.
*2 Operating cash flow plus collection of investments in leases less cash outflows for the purchase of property, plant and equipment, intangible assets, software, and the assets to be leased.

Copyright © Hitachi, Ltd. 2013. All rights reserved.

31-2. Consolidated Statements of Operations
Billions of Yen
Fiscal 2012
First Quarter

Fiscal 2013
First Quarter

Year over Year

2,120.7

2,082.9(37.7)[98%]

Operating income

63.5

55.4

(8.0)

EBIT

52.2

58.5

+6.3

Net other income (deductions)(14.7)

0.0+14.6

Income before income taxes

48.8

55.3

+6.5

Income taxes(28.4)(32.7)(4.2)

Net income

20.3

22.6

+2.2

(13.3)(11.8)

+1.5

7.0

10.7

+3.7

Revenues

Net income attributable tononcontrolling interests
Net income attributable to Hitachi, Ltd.
stockholders

Copyright © Hitachi, Ltd. 2013. All rights reserved.

41-3. Major Factors for Change in Operating Income (Year over Year)

Operating income

Lower sales prices:(25.0)

63.5

Benefits ofHitachi Smart
Transformation
Project:+20.0

Billions of Yen
Cost reduction, etc.:
+42.0

(8.0)

55.4

Lower capacity
utilization: (40.0)

Effect of foreignexchange
movements: +20.0
Impact of higher
raw materials
prices:(5.0)
Fiscal 2012
First Quarter

Fiscal 2013
First Quarter
Copyright © Hitachi, Ltd. 2013. All rights reserved.

5

1-4.

Major Factors for Change in Net Income
Attributable to Hitachi, Ltd. Stockholders

Operating income

Net income attributable to
Hitachi, Ltd. stockholders

Losses on disposal of fixed assets,gain (loss) on securities, etc.: +0.3

Structural reform
expenses: (3.3)

Billions of Yen

55.4
Effect of foreign exchange
movements: +2.8

(44.6)

Income taxes: (32.7)

10.7
OperatingincomeNet income attributable to
Hitachi, Ltd. stockholders

Net income attributable tononcontrolling interests:(11.8)

Fiscal 2013
First Quarter
Copyright © Hitachi, Ltd. 2013. All rights reserved.

6

1-5.

Major Factors for Change in Net Income
Attributable to Hitachi, Ltd. Stockholders (Year over Year)
Effect of foreign exchange
movements: 14.6

Net income attributable to
Hitachi, Ltd. stockholders

Billions of Yen

10.7

+3.7
7.0

Decreased operating
income: (8.0)
Income taxes: (4.2)

Net income attributable tononcontrolling interests: +1.5

Fiscal 2012
First Quarter

Fiscal 2013
First Quarter
Copyright © Hitachi, Ltd. 2013. All rights reserved.

71-6. Revenues by Market
Billions of Yen
Fiscal 2012
First Quarter

Japan

Ratio

Fiscal 2013
First Quarter

Ratio

Year over Year

1,204.6

57%

1,087.7

52%

90%

916.0

43%

995.2

48%

109%

418.1

20%

482.0

23%

115%

China

180.8

9%

225.4

11%

125%

North America

203.2

9%

215.9

11%

106%

Europe

164.0

8%

167.6

8%

102%

Other Areas

130.6

6%

129.6

6%

99%

2,120.7

100%

2,082.9100%98%Outside Japan
Asia

Total

Copyright © Hitachi, Ltd. 2013. All rights reserved.

81-7. Summary of Consolidated Balance Sheets

Billions of Yen
As ofMarch 31, 2013 (A)As ofJune 30, 2013 (B)Total assets

9,809.2

10,293.6+484.4

Total liabilities

6,629.9

7,014.3+384.32,370.0

2,804.0+433.9Total Hitachi, Ltd.
stockholders’ equity

2,082.5

2,161.9+79.3

Noncontrolling interests

1,096.7

1,117.3+20.6

Total Hitachi, Ltd.
stockholders’ equity ratio

21.2%

21.0%

0.2 point decrease

0.75 times

0.86 times

0.11 point increase

Interest-bearing debt

D/E ratio(Including noncontrolling interests)(B) - (A)Copyright © Hitachi, Ltd. 2013. All rights reserved.

9

Summary of Consolidated Balance Sheets by

1-8. Manufacturing, Services and Others and Financial Services
 Summary of Consolidated Balance Sheets (Manufacturing, Services and Others) *As ofMarch 31, 2013 (A)Billions of Yen

As ofJune 30, 2013 (B)(B) – (A)Total assets

8,324.4

8,508.7+184.3

Total liabilities

5,414.7

5,507.1+92.3

1,368.8

1,488.6+119.7

1,932.3

2,006.1+73.8

Noncontrolling interests

977.3

995.4

+18.1

Total Hitachi, Ltd. stockholder’s equity ratio

23.2%

23.6%

0.4 point increase

0.47 times
 Summary of Consolidated Balance Sheets (Financial Services) *0.50 times

0.03 point increase

Interest-bearing debt
Total Hitachi, Ltd stockholders’ equity

D/E ratio(Including noncontrolling interests)

As ofMarch 31, 2013 (A)Billions of Yen
As ofJune 30, 2013 (B)(B) – (A)Total assets

1,960.9

2,288.7+327.8

Total liabilities

1,680.2

2,000.1+319.81,224.9

1,551.9+326.9Total Hitachi, Ltd. stockholders’ equity

161.1

166.6

+5.5

Noncontrolling interests

119.6

122.0

+2.4

Total Hitachi, Ltd. stockholder’s equity ratio

8.2%

7.3%

0.9 point decrease

4.36 times

5.38 times

Interest-bearing debt

D/E ratio(Including noncontrolling interests)* Figures here represent unaudited financial information prepared by the Company.

1.02 point increase
Copyright © Hitachi, Ltd. 2013. All rights reserved.
101-9. Summary of Consolidated Statements of Cash Flows Summary of Consolidated Statements of Cash Flows

Billions of Yen

Fiscal 2012
First Quarter

Fiscal 2013
First Quarter

Year over Year

Cash flows from operating activities

43.4

42.9

(0.4)

Cash flows from investing activities(89.1)(148.0)(58.8)

Free cash flows(45.7)(105.1)(59.3)(77.5)(128.1)
 Summary of Consolidated Statements of Cash Flows (Manufacturing, Services and Others) *Core free cash flows

Fiscal 2012
First Quarter

Fiscal 2013
First Quarter(50.5)
Billions of Yen

Year over Year

Cash flows from operating activities

45.6

105.9

+60.2

Cash flows from investing activities(67.2)(122.1)(54.8)

Free cash flows(21.5)(16.1)

+5.4

(8.7)

+61.6

(70.3)
 Summary of Consolidated Statements of Cash Flows (Financial Services) *Core free cash flows

Fiscal 2012
First Quarter

Billions of Yen

Fiscal 2013
First Quarter

Year over Year

Cash flows from operating activities

0.6(56.0)(56.7)Cash flows from investing activities

5.2(39.8)(45.0)

Free cash flows

5.9(95.8)(101.7)(0.9)(113.9)(112.9)Core free cash flows* Figures here represent unaudited financial information prepared by the Company.

Copyright © Hitachi, Ltd. 2013. All rights reserved.

11

1-10. Consolidated Capital Expenditure, Depreciation and R&D Expenditure Consolidated Capital Expenditure (Completion basis, including Leasing Assets)
Fiscal 2012
First Quarter

Billions of Yen

Fiscal 2013
First Quarter

Year over Year

Manufacturing, Services and Others

89.8

92.3

103%

Financial Services

82.5

121.6

147%

170.4

211.4

124%

Total ** Total figures exclude inter-segment transactions.

 Consolidated Depreciation

Billions of Yen
Fiscal 2012
First Quarter

Fiscal 2013
First Quarter

Year over Year

Manufacturing, Services and Others

56.6

63.7

112%

Financial Services

13.8

16.2

117%

70.5

80.0

113%

Total
 Consolidated R&D ExpenditureBillions of Yen
Fiscal 2012
First Quarter

Total

79.0

Fiscal 2013
First Quarter

81.8

Year over Year

104%

Copyright © Hitachi, Ltd. 2013. All rights reserved.

12

1-11. Revenues, Operating Income and EBIT by Business Group (1)Billions of Yen
Fiscal 2012
First Quarter
Revenues
Infrastructure
Systems

Information &Telecommunication
Systems

Construction
Machinery

Year over Year

701.8

710.8

101%

Operating income

7.5

0.4

(7.1)

EBIT

6.3

4.9

(1.4)

516.4

530.5

103%

Operating income

4.8

3.2

(1.6)

EBIT

5.4

3.8

(1.6)

190.5

155.5

82%

Operating income

2.4

(5.8)

(8.3)

EBIT

1.9

(4.1)

(6.1)

Revenues

199.0

178.5

90%

Operating income

14.1

11.7

(2.3)

EBIT

10.7

6.1

(4.6)

Revenues

Revenues
Power Systems

Fiscal 2013
First Quarter

Figures here represent unaudited financial information prepared by the Company.

Copyright © Hitachi, Ltd. 2013. All rights reserved.

13

1-12. Revenues, Operating Income and EBIT by Business Group (2)Billions of Yen
Fiscal 2012
First Quarter
High Functional
Materials &Components

Automotive
Systems

Financial Services

Year over Year

Revenues

380.9

367.6

97%

Operating income

21.2

26.7

+5.5

EBIT

20.9

26.5

+5.6

Revenues

205.0

207.8

101%

Operating income

9.3

9.7

+0.3

EBIT

8.2

9.8

+1.6

Revenues

94.6

81.7

86%

Operating income

7.2

8.2

+1.0

EBIT

7.7

9.4

+1.7

2,120.7

2082.998%

Operating income

63.5

55.4

(8.0)

EBIT

52.2

58.5

+6.3

Revenues
Total

Fiscal 2013
First Quarter

Figures here represent unaudited financial information prepared by the Company.

Copyright © Hitachi, Ltd. 2013. All rights reserved.

14

1-13. Revenues, Operating Income and EBIT by Business Segment (1)Billions of Yen
Fiscal 2012
First Quarter

Information &Telecommunication Systems

Power Systems

Social Infrastructure &Industrial Systems

Electronic Systems &Equipment

Construction Machinery

High Functional Materials &Components

Fiscal 2013
First Quarter

Year over Year

Revenues

371.6

391.0

105%

Operating income

(1.4)

0.0

+1.4

EBIT

(0.9)

0.6

+1.5

Revenues

190.5

155.5

82%

Operating income

2.4

(5.8)

(8.3)

EBIT

1.9

(4.1)

(6.1)

Revenues

238.0

257.5

108%

Operating income

(2.0)

(0.4)

+1.5

EBIT

(2.0)

1.8

+3.9

Revenues

245.2

225.6

92%

Operating income

9.5

0.3

(9.2)

EBIT

8.3

1.2

(7.1)

Revenues

199.0

178.5

90%

Operating income

14.1

11.7

(2.3)

EBIT

10.7

6.1

(4.6)

Revenues

343.1

338.1

99%

Operating income

20.0

26.0

+6.0

EBIT

20.3

25.2

+4.8

Copyright © Hitachi, Ltd. 2013. All rights reserved.

15

1-14. Revenues, Operating Income and EBIT by Business Segment (2)Billions of Yen
Fiscal 2012
First Quarter
Revenues

Automotive Systems

Digital Media &Consumer Products
Others(Logistics and Other services) *Financial Services

207.8

101%

Operating income

9.3

9.7

+0.3

EBIT

8.2

9.8

+1.6

218.5

227.6

104%

Operating income

0.0

0.6

+0.5

EBIT

0.0

1.7

+1.7

278.5

263.0

94%

Operating income

8.9

7.0

(1.8)

EBIT

9.0

10.2

+1.1

Revenues

94.6

81.7

86%

Operating income

7.2

8.2

+1.0

EBIT

7.7

9.4

+1.7

(263.7)(243.9)-Operating income

(4.6)

(2.1)

+2.5

EBIT

(11.3)

(3.8)

+7.4

2,120.7

2,082.998%

Operating income

63.5

55.4

(8.0)

EBIT

52.2

58.5

+6.3

Revenues

Revenues

Revenues

Total

Year over Year
Changes

205.0

Revenues

Corporate items & Eliminations

Fiscal 2013
First Quarter* On April 1, 2013, the former “Others” was renamed “Others (Logistics and Other services)”.

Copyright © Hitachi, Ltd. 2013. All rights reserved.

16

About Business Group
Business Group

Segment and Subsidiary

Infrastructure Systems Group

Social Infrastructure & Industrial Systems Segment,
Electronic Systems & Equipment Segment,
Digital Media & Consumer Products Segment

Information & Telecommunication
Systems Group

Information & Telecommunication Systems Segment,
Hitachi Transport System

Power Systems GroupPower Systems Segment

Construction Machinery Group

Construction Machinery Segment

High Functional Materials &Components GroupHigh Functional Materials & Components Segment,
Hitachi Maxell

Automotive Systems Group

Automotive Systems Segment

Financial Services Group

Financial Services Segment

Some businesses are not included in the table above.

Copyright © Hitachi, Ltd. 2013. All rights reserved.

17

Outline of Consolidated Financial Results
for the First Quarter ended June 30, 2013

July 30, 2013

Contents1.
2.
3.

Outline of Consolidated Financial Results for
the First Quarter ended June 30, 2013
Outlook for the First Half of Fiscal 2013
Toward Achieving“2015 Mid-term Management Plan”

Copyright © Hitachi, Ltd. 2013. All rights reserved.

18

2-1. Outlook for the First Half of Fiscal 2013 (1)Business Environment
Japan and U.S. :Both economies are expected to see further recovery due to the massive
quantitative easing programs and other factors.

Southeast Asia :Mild economic growth is expected to continue.

EuropeEconomies are expected to remain sluggish.

:

China and India :Economic growth is expected to slow.

[Projections for the second quarter of fiscal 2013 assume an exchange rate of 95 yen to the U.S. dollar and 125 yen to the euro.]Billions of Yen

Summary of the First Half Fiscal 2013 Forecast (Revised)
Previous forecast * (A)Revised forecast (B)(B) – (A)4,350.0

4,400.0+50.0(101%)

Operating income

130.0

145.0

+15.0

EBIT

95.0

120.0

+25.0

Net income attributable to
Hitachi, Ltd. stockholders

10.0

15.0

+5.0

Revenues* Announced on May 10, 2013

Copyright © Hitachi, Ltd. 2013. All rights reserved.

192-2. Outlook for the First Half of Fiscal 2013 (2)[Projections for the second quarter of fiscal 2013 assume an exchange rate of 95 yen to the U.S. dollar and 125 yen to the euro.]Billions of Yen
Fiscal 2013
First Half
(Forecast)Fiscal 2012
First Half

Revenues

Year over Year4,355.5

4,400.0101%

Operating income

163.6

145.0

(18.6)

EBIT

124.0

120.0

(4.0)

Net other income (deductions)(47.3)(30.0)+17.3

Income before income taxes

116.2

115.0

(1.2)

Income taxes(50.7)(65.0)(14.2)Net income

65.5

50.0

(15.5)(35.3)(35.0)

+0.3

30.1

15.0

(15.1)Net income attributable tononcontrolling interests
Net income attributable to Hitachi, Ltd.
stockholders

Copyright © Hitachi, Ltd. 2013. All rights reserved.

20

2-3.

Outlook for the First Half of Fiscal 2013
Revenues, Operating income and EBIT by Business Group (1)Billions of Yen
Fiscal 2013
First Half
(Forecast)Fiscal 2012
First Half

1,484.7

1,540.0

104%

103%

Operating income

20.5

2.0

(18.5)

(1.0)

EBIT

18.3

4.0

(14.3)+4.0

1,110.7

1,140.0

103%

102%

Operating income

38.7

39.0

+0.3

(6.0)

EBIT

34.2

35.0

+0.8

(6.0)

413.4

370.0

89%

100%

Operating income

7.4

(5.0)

(12.4)

+2.0

EBIT

5.9

(8.0)

(13.9)

+3.0

370.6

380.0

103%

100%

Operating income

22.8

28.0

+5.2

0.0

EBIT

29.8

28.0

(1.8)

+1.0

Revenues

Infrastructure
Systems

Revenues

Information &Telecommunication
Systems

Revenues

Power Systems

Revenues

Construction
Machinery

Year over Year

Previous
forecast *comparison* Announced on May 10, 2013

Figures here represent unaudited financial information prepared by the Company.

Copyright © Hitachi, Ltd. 2013. All rights reserved.

21

2-4.

Outlook for the First Half of Fiscal 2013
Revenues, Operating income and EBIT by Business Group (2)Billions of Yen
Fiscal 2012
First Half

720.0

96%

100%

Operating income

40.0

47.0

+7.0

+11.0

EBIT

38.6

45.0

+6.4

+9.0

401.8

400.0

100%

100%

Operating income

19.2

18.0

(1.2)

0.0

EBIT

18.2

18.0

(0.2)

0.0

179.6

160.0

89%

100%

Operating income

13.7

15.0

+1.2

+1.0

EBIT

15.5

15.0

(0.5)

+1.0

4,355.5

4,400.0

101%

101%

Operating income

163.6

145.0

(18.6)

+15.0

EBIT

124.0

120.0

(4.0)

+25.0

Revenues

Automotive
Systems

Revenues

Financial Services

Revenues

Total

Year over Year

Previous
forecast *comparison

748.4

Revenues

High Functional
Materials &Components

Fiscal 2013
First Half
(Forecast)* Announced on May 10, 2013

Figures here represent unaudited financial information prepared by the Company.

Copyright © Hitachi, Ltd. 2013. All rights reserved.

22

2-5.

Outlook for the First Half of Fiscal 2013
Revenues, Operating income and EBIT by Business Segment (1)Billions of Yen
Fiscal 2013
First Half
(Forecast)Fiscal 2012
First Half
Information &Telecommunication
Systems

Power Systems

Revenues

832.9

850.0

102%

102%

Operating income

27.2

28.0

+0.7

(6.0)

EBIT

22.4

24.0

+1.5

(6.0)

Revenues

413.4

370.0

89%

100%

Operating income

7.4

(5.0)

(12.4)

+2.0

EBIT

5.9

(8.0)

(13.9)

+3.0

545.3

600.0

110%

105%

Operating income

3.1

(2.0)

(5.1)

(2.0)

EBIT

3.2

1.0

(2.2)

+2.0

Revenues

510.5

490.0

96%

100%

Operating income

19.7

7.0

(12.7)

0.0

EBIT

17.1

6.0

(11.1)+1.0

Revenues

370.6

380.0

103%

100%

Operating income

22.8

28.0

+5.2

0.0

EBIT

29.8

28.0

(1.8)

+1.0

Revenues

674.3

650.0

96%

100%

Operating income

38.1

46.0

+7.8

+11.0

EBIT

37.5

44.0

+6.4

+9.0

Revenues

Social Infrastructure &Industrial Systems

Electronic Systems &Equipment

Construction
MachineryHigh Functional
Materials &Components* Announced on May 10, 2013

Year over Year

Previous
forecast *comparison

Copyright © Hitachi, Ltd. 2013. All rights reserved.

23

2-6.

Outlook for the First Half of Fiscal 2013
Revenues, Operating income and EBIT by Business Segment (2)Billions of Yen
Fiscal 2012
First Half

Automotive Systems

Digital Media &Consumer Products
Others(Logistics and Other
services) *2

Financial Services

401.8

400.0

100%

100%

Operating income

19.2

18.0

(1.2)

0.0

EBIT

18.2

18.0

(0.2)

0.0

Revenues

428.7

450.0

105%

105%

Operating income

(2.4)

(3.0)

(0.5)

+1.0

EBIT

(2.0)

(3.0)

(0.9)

+1.0

Revenues

556.6

540.0

97%

100%

Operating income

20.8

17.0

(3.8)

0.0

EBIT

21.4

17.0

(4.4)

+1.0

Revenues

179.6

160.0

89%

100%

Operating income

13.7

15.0

+1.2

+1.0

EBIT

15.5

15.0

(0.5)

+1.0

(558.7)(490.0)--Operating income

(6.5)

(4.0)

+2.5

+8.0

EBIT

(45.3)(22.0)

+23.3

+12.0

4,355.5

4,400.0

101%

101%

Operating income

163.6

145.0

(18.6)

+15.0

EBIT

124.0

120.0

(4.0)

+25.0

Revenues

Total

Year over Year

Previous
forecast *1
comparison

Revenues

Revenues

Corporate items &Eliminations

Fiscal 2013
First Half
(Forecast)* 1 Announced on May 10, 2013
* 2 On April 1, 2013, the former “Others” was renamed “Others (Logistics and Other services)”.

Copyright © Hitachi, Ltd. 2013. All rights reserved.

24Outline of Consolidated Financial Results
for the First Quarter ended June 30, 2013

July 30, 2013

Contents1.
2.
3.

Outline of Consolidated Financial Results for
the First Quarter ended June 30, 2013
Outlook for the First Half of Fiscal 2013
Toward Achieving“2015 Mid-term Management Plan”

Copyright © Hitachi, Ltd. 2013. All rights reserved.

25

3-1. Steady Progress with 2015 Mid-term Management Plan
1. Global Expansion of the Social Innovation Business• Vietnam : Won turnkey order for “Urban Railway Line 1” in Ho Chi Minh City• Greece : Won turnkey order for supercritical coal-fired thermal power generation equipments fora thermal power plant• UK: Received indication for additional order for Intercity Express Programme(270 rail carriages)• Expanding solution businesses utilizing capabilities of financial services(Energy-saving solutions, Global factoring)

2. Strengthening Global Management System• Brazil: Opened R&D center in Sao Paulo• Established Hitachi Global Center for Innovative Analytics (Big Data utilization)• Increased diversity of board of directors (Additional non-Japanese director)

3. Group Structural Reforms• Concluded definitive agreement to integrate thermal power generation systems business with Mitsubishi
Heavy Industries• Integrated four power systems subsidiaries into Hitachi Power Solutions
Copyright © Hitachi, Ltd. 2013. All rights reserved.

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3-2. Hitachi Smart Transformation Project Progress and Outlook
Make steady progress with cost structure reforms
to achieve the goals of 2015 Mid-term Management Plan

Production
Costs




Promote global SCM reforms• Conducting at 5 advance companies• Formulated plan to review operations and build an IT platform at 3 companies
Build a shared PSI *1 system for mass production-type businesses(Plan to bring online in September 2013)
Reinforce system for supporting expanded application of modular design(Plan to form a specialist team in fiscal 2013)

DirectMaterials
Costs

 Expand centralized purchasing (Targeting a 34% centralized purchasing ratio in fiscal 2013)
 Lower materials expenses by utilizing global corporate procurement bases
 Strengthen skills of employees at global corporate procurement bases• Running a training program, including e-learning, for national staff(Extend target regions in September 2013)

IndirectCosts

 Promote BPO *2 globally based on results in Japan• China: Trials completed at 4 advance companies. Plan to extend to 50 companies in fiscal 2013.
 Step up global development of shared services• Established Global Shared Service Promotion Office (June 2013)• Created standard operation “menu”: Plan to begin applying in Europe and Asia in October 2013
 Promote Group structural reforms: Formulate plan for eliminating redundant structures andstrengthening governance (Plan to begin applying from fiscal 2014)*1 PSI：Production Sales Inventory*2 BPO：Business Process Outsourcing

Copyright © Hitachi, Ltd. 2013. All rights reserved.

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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 which indicate future events and trends may identify “forward-looking
statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from thoseprojected 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 notprove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.
Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to: economic conditions, including consumer spending and plant and equipment investment in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as levels of
demand in the major industrial sectors Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors;
 exchange rate fluctuations of the yen against other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated, particularly against the U.S.
dollar and the euro; uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing; uncertainty as to general market price levels for equity securities, declines in which may require Hitachi to write down equity securities that it holds;
 the potential for significant losses on Hitachi’s investments in equity method affiliates;
 increased commoditization of information technology products and digital media-related products and intensifying price competition for such products, particularly in the Digital Media &Consumer Products segments;
 uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technologies on a timely and cost-effective basis and to achieve market acceptance for suchproducts;
 rapid technological innovation;
 the possibility of cost fluctuations during the lifetime of, or cancellation of, long-term contracts for which Hitachi uses the percentage-of-completion method to recognize revenue from sales; fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, orshortages of materials, parts and components;
 fluctuations in product demand and industry capacity; uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in product demand, exchange rates and/or price of raw materials or shortagesof materials, parts and components;
 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 or otherwise exiting underperforming businesses and to strengthen competitiveness;
 uncertainty as to the success of cost reduction measures;
 general socioeconomic and political conditions and the regulatory and trade environment of countries where Hitachi conducts business, particularly Japan, Asia, the United States and Europe,
including, without limitation, direct or indirect restrictions by other nations on imports and differences in commercial and business customs including, without limitation, contract terms andconditions and labor relations; uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and development of certain key products;
 uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly those related to electronics and data processing technologies;
 uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity method affiliates 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 by earthquakes, tsunamis or other natural disasters;
 uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information or that of its customers;
 uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its significant employee benefit-related costs; and uncertainty as to Hitachi’s ability to attract and retain skilled personnel.
The factors listed above are not all-inclusive and are in addition to other factors contained in other materials published by Hitachi.

Copyright © Hitachi, Ltd. 2013. All rights reserved.

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