[Translation]

Quarterly Report(The Third Quarter of 144th Business Term)
From October 1, 2012 to December 31, 2012

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 to]

Director, Kanto Local Finance Bureau[Filing Date]

February 12, 2013

[Fiscal Year]

The Third Quarter of 144th Business Term (from October 1, 2012 to December 31,
2012)[Company Name]

Kabushiki Kaisha Hitachi Seisakusho[Company Name in English] Hitachi, Ltd.
[Title and Name of

Hiroaki Nakanishi, President

Representative][Address of Head Office]6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo[Phone No.]

03-3258-1111[Contact Person]

Taro Kaiho, Manager, Legal Division[Contact Address]

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

03-3258-1111[Contact Person]

Taro Kaiho, Manager, Legal Division[Place Where Available forTokyo Stock Exchange, Inc.

Public Inspection](2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)
Osaka Securities Exchange Co., Ltd.
(8-16, Kitahama 1-chome, Chuo-ku, Osaka)
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 are 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 theCompany and its consolidated subsidiaries.
Unless otherwise stated, in this document, where we present information in millions or hundreds of millions of yen, we
have truncated amounts of less than one million or one hundred million, as the case may be. Accordingly, the total of figures
presented in columns or otherwise may not equal the total of the individual items. We have rounded all percentages to thenearest percent, one-tenth 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 andExchange Act of Japan and other laws and regulations amending and/or supplementing the Financial Instruments andExchange 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 .............................................................................................................................. 1
II. Business Overview ............................................................................................................................................. 2
1. Risk Factors................................................................................................................................................. 2
2. Material Agreements, etc. ........................................................................................................................... 2
3. Analyses of Consolidated Financial Condition, Operating Results and Cash Flows ................................. 3
III. Information on the Company .......................................................................................................................... 10
1. Information on the Company’s Stock, etc. ............................................................................................... 10(1) Total number of shares, etc. ................................................................................................................. 10(2) Information on the stock acquisition rights, etc. .................................................................................. 10(3) Information on moving strike convertible bonds, etc. ......................................................................... 10(4) Information on shareholder right plans ................................................................................................ 10(5) Changes in the total number of issued shares and the amount of common stock and other ................ 10(6) Major shareholders ............................................................................................................................... 10(7) Information on voting rights................................................................................................................. 11
2. Change in Senior Management ................................................................................................................. 12
IV. Financial Information ..................................................................................................................................... 12Part II Information on Guarantors, etc. for the Company .......................................................................................... 12[Consolidated Financial Statements] ...........................................................................................................................F-1[Confirmation Letter] .................................................................................................................................................. A-1

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 Nine months ended
Year ended
December 31, 2011 December 31, 2012 March 31, 2012
6,837,676[2,264,947]

6,468,701[2,113,133]

9,665,883

Income before income taxes

216,990

175,675

557,730

Net income attributable to Hitachi, Ltd.
stockholders

85,229[34,280]

50,358[20,233]

347,179

Comprehensive income

67,482

206,302392,581

Total Hitachi, Ltd. Stockholders’ equity

1,466,890

1,893,966

1,771,782

Total equity

2,465,622

2,939,944

2,773,995

Total assets

9,357,288

9,646,536

9,418,526

Net income attributable to Hitachi, Ltd.
stockholders per share, Basic (yen)

18.87[7.59]

10.80[4.29]

76.81

Net income attributable to Hitachi, Ltd.
stockholders per share, Diluted (yen)

17.64

10.42

71.86

Total Hitachi, Ltd. stockholders’ equity ratio (%)

15.7

19.6

18.8

Cash flows from operating activities

100,633

245,335

447,155

Cash flows from investing activities(304,844)(453,655)(195,584)

Cash flows from financing activities

248,708

173,777(167,838)

Cash and cash equivalents at end of period

561,850

606,589

619,577

Revenues(Notes)

1. Our consolidated financial statements have been prepared in conformity with accounting
principles generally accepted in the United States.
2. Revenues do not include the consumption tax, etc.
3. The figures of “Revenues,” “Net income attributable to Hitachi, Ltd. stockholders” and “Net
income attributable to Hitachi, Ltd. stockholders per share, Basic” in square bracket are those in
the three months ended December 31, 2011 and 2012, respectively.

2. Description of Business
The Company’s consolidated financial statements have been prepared in conformity with accounting
principles generally accepted in the United States, and affiliates are disclosed based on the definitions of thoseaccounting principles. The same applies to “II. Business Overview”.
There was no material change in principal businesses of Hitachi during the nine months ended December
31, 2012. The Hitachi Group is comprised of the Company and 957 consolidated subsidiaries (including variableinterest entities) and 216 equity-method affiliates. Consolidated trust accounts are not included in the number ofconsolidated subsidiaries.

1Changes of businesses in each segment and major consolidated subsidiaries during the nine months ended
December 31, 2012 were as follows.
Positioning of principal affiliated companies
Manufacturing
Sales and services
Power Systems[Consolidated subsidiaries](New)
Horizon Nuclear Power Limited[Consolidated subsidiaries]
Others(Reclassified)(Reclassified)
Hitachi Maxell, Ltd.,
Information Storage Media, Batteries
Hitachi Maxell Energy, Ltd.
(Notes) 1. The Company purchased all outstanding shares of Horizon Nuclear Power Limited (“Horizon”) from RWE npowerplc and E.ON UK plc, and Horizon became the Company’s subsidiary on November 23, 2012.
2. Effective from April 1, 2012, the Company eliminated the Components & Devices segment. The businesses, whichwere previously included in the Components & Devices segment, have been included in the Others segment.
3. Hitachi Maxell, Ltd. merged with Hitachi Maxell Energy, Ltd. on January 1, 2013.
Segment

II. Business Overview
1. Risk Factors
There was no new risk factor recognized during the nine months ended December 31, 2012.
Material changes in the risk factors stated in the Annual Securities Report for the 143rd business term
pursuant to the Financial Instruments and Exchange Act of Japan were as follows.
Changes in “Litigation and Regulatory Investigations”
In July 2012, a Japanese subsidiary received a statement of objections from the European Commission
in respect of alleged antitrust violations relating to optical disk drives.
In August 2012, a subsidiary of the Company in Europe received a complaint filed by a customer inEurope seeking compensation for consequential losses of EUR 1,058 million (¥121.4 billion), additional costs
and interest allegedly incurred by the delay in the construction process of a power plant against, jointly andseverally, the Company, the subsidiary of the Company in Europe, a consortium including the Company andthe subsidiary of the Company in Europe, and two other companies. Although the Company, the subsidiary of
the Company in Europe and the consortium will vigorously defend themselves against this lawsuit, there canbe no assurance that they will not be held liable for any amounts claimed.
In November 2012, a Japanese subsidiary received a cease and desist order from the Fair Trade
Commission of Japan in respect of antitrust violations relating to automotive equipment.
2. Material Agreements, etc.
(1) Business Integration
The Company and Mitsubishi Heavy Industries, Ltd. (“MHI”) have reached a basic agreement, throughthe resolution of the board of directors of both companies, on integrating businesses in fields centered onthermal power generation systems and jointly managing these operations on November 29, 2012. Outline is asfollows.
(i) Scope of the business integration
The combined sales of both companies related businesses of the fiscal year ended March 31, 2012 isapproximately ¥1,100.0 billion. Businesses to be integrated are as follows.
- Thermal power generation system businesses (gas turbines, steam turbines, boilers, generators, etc.)- Geothermal power system business- Environmental equipment- Fuel cells business- Other related business
Certain subsidiaries and equity method affiliates engaging in these businesses will be subject to theintegration.

2

(ii) Measure of integration
Businesses subject to the integration will be transferred to a joint venture company by way of company
split and other method. Details of the integration will be determined after the consultation between MHI
and the Company by the execution of the final agreement on the integration.
(iii) Overview of the joint venture company
MHI and the Company will have equity interests of 65% and 35%, respectively, in the joint venturecompany. Calculation of the equity interest ratio will be examined through the planned additional due
diligence, etc.
(iv) Schedule
November 29, 2012
Execution of basic agreement
Late April, 2013 (Tentative)
Execution of final agreement
January 1, 2014 (Tentative)
Closing
The business reorganization relating to the integration may be subject to the approval by theshareholders meeting of the MHI. In such case, MHI board will propose necessary items to its annual
shareholders meeting to be held in late June, 2013.
(2) As Licensor
During the three months ended December 31, 2012, a licensee changed in the following material license
agreement.

Licensor

LicenseeCountry

Item undercontract

Contract
description

Contract period

From August 10,
2007 to theRare earth
expiration of themagnets
patents undercontracts(Notes) 1. MCP Canada Limited Partnership succeeded the position of Licensee from Magnequench
Limited on October 11, 2012.
2. A lump-sum payment has been received, and royalties are received in installments until the endof the contract period.
Hitachi Metals, Ltd. MCP Canada Limited(Consolidated
Partnership
Canadasubsidiary)(Note 1)

License ofpatents(Note 2)

3. Analyses of Consolidated Financial Condition, Operating Results and Cash Flows(1) Outline of Business Results
Effective from April 1, 2012, the Company eliminated the Components & Devices segment. The
businesses, which were previously included in the Components & Devices segment, have been included in the
Others segment. Figures for each segment, including figures for the nine months ended December 31, 2012 andfor the nine months ended December 31, 2011 reflect the new segmentation.
Results of Operations
During the nine months ended December 31, 2012, the U.S. economy continued to experience a moderate
recovery. However, economic stagnant continued in Europe due to sovereign debt crisis in some countries and also
the Chinese economy, the Indian economy and other emerging nations’ economies slowed further.
In Japan, public works and housing investing increased due to the reconstruction after the Great East Japan
Earthquake, and consumer spending are solid. However, the Japanese economy continuously struggled due
mainly to the global economic slowdown.
Under these circumstances, total revenues in the nine months ended December 31, 2012 decreased 5%compared with the nine months ended December 31, 2011, to ¥6,468.7 billion due mainly to the sale of the harddisk drive business in the year ended March 31, 2012. This decrease was partially offset by increased revenues in thePower Systems Segment due to higher sales in nuclear power generation systems, the Information &Telecommunication Systems and the Social Infrastructure & Industrial Systems segments.
Cost of sales in the nine months ended December 31, 2012 decreased 5% compared with the nine months
ended December 31, 2011, to ¥4,858.6 billion, and the ratio of cost of sales to revenues accounted for 75% in thenine months ended December 31, 2012, which was the same level as in the nine months ended December 31,
2011.

3

Selling, general and administrative expenses in the nine months ended December 31, 2012 decreased 4%compared with the nine months ended December 31, 2011, to ¥1,378.1 billion and their ratio to revenues was
21% in the nine months ended December 31, 2012, which was the same level as in the nine months ended
December 31, 2011.
Impairment losses for long-lived assets in the nine months ended December 31, 2012 decreased ¥3.6
billion to ¥8.5 billion, as compared with the nine months ended December 31, 2011.
Restructuring charges in the nine months ended December 31, 2012 decreased ¥3.5 billion to ¥10.1 billion,
as compared with the nine months ended December 31, 2011.
Interest income in the nine months ended December 31, 2012 decreased ¥0.7 billion to ¥8.9 billion, as
compared with the nine months ended December 31, 2011.
Dividends income in the nine months ended December 31, 2012 was ¥4.7 billion, almost the same as thenine months ended December 31, 2011.
Other income in the nine months ended December 31, 2012 was ¥8.9 billion, a ¥14.4 billion decrease
compared with the nine months ended December 31, 2011, due mainly to the posting of net loss on sale anddisposal of rental assets and other property in the nine months ended December 31, 2012, as compared with net
gain in the nine months ended December 31, 2011. This decrease was partially offset by the posting of net gain on
securities and exchange gain.
Interest charges in the nine months ended December 31, 2012 decreased ¥0.4 billion to ¥20.2 billion, as
compared with the nine months ended December 31, 2011.
Other deductions in the nine months ended December 31, 2012 were ¥1.2 billion, a ¥23.9 billion decrease
compared with the nine months ended December 31, 2011 due mainly to the posting of net gain on securities andexchange gain in the nine months ended December 31, 2012, as compared with net loss on securities andexchange loss in the nine months ended December 31, 2011.
Equity in net loss of affiliated companies in the nine months ended December 31, 2012 increased ¥24.1
billion compared with the nine months ended December 31, 2011, to ¥38.5 billion, due mainly to therestructuring charges at the Company’s equity-method affiliated company in the semiconductor industry.
Income before income taxes in the nine months ended December 31, 2012 decreased 19% compared with
the nine months ended December 31, 2011, to ¥175.6 billion.
Income taxes amounted to ¥81.2 billion in the nine months ended December 31, 2012, a decrease of ¥11.5
billion compared with the nine months ended December 31, 2011.
Net income in the nine months ended December 31, 2012 decreased 24% compared with the nine months
ended December 31, 2011, to ¥94.3 billion.
Net income attributable to noncontrolling interests amounted to ¥44.0 billion in the nine months ended
December 31, 2012, an increase of ¥5.1 billion compared with the nine months ended December 31, 2011.
As a result of the foregoing, net income attributable to Hitachi, Ltd. stockholders in the nine months ended
December 31, 2012 decreased 41% compared with the nine months ended December 31, 2011, to ¥50.3 billion.
Operations by Segment
The following is an overview of Hitachi’s results of operations by segment. Revenues for each segment
include intersegment transactions.
(Information & Telecommunication Systems)
Revenues increased 3% compared with the nine months ended December 31, 2011, to ¥1,242.3 billion.
While software business recorded lower sales, services business recorded higher sales. Hardware business also
recorded higher sales due mainly to higher sales from ATMs, partially offset by lower sales oftelecommunications.
Segment profit decreased 14% compared with the nine months ended December 31, 2011, to ¥43.1 billion,
due to lower earnings in software and services business owing to lower projects profitability. This worsening ispartially offset by improvement of profitability in hardware business.
(Power Systems)
Revenues increased 15% compared with the nine months ended December 31, 2011, to ¥619.2 billion, due
to the acquisition of part of the transmission and distribution business of Japan AE Power Systems Corporation in
April 2012 and higher sales of thermal power generation systems and nuclear power generation systems.
Segment profit improved ¥25.2 billion, resulting in a profit of ¥14.0 billion, compared with the ninemonths ended December 31, 2011. This improvement resulted from higher earnings due to increased revenues

4and the absence of additional costs related to coal-fired thermal power generation systems in the overseas market
recorded in the nine months ended December 31, 2011, as well as progress in cost reduction measures.
(Social Infrastructure & Industrial Systems)
Revenues increased 9% compared with the nine months ended December 31, 2011, to ¥842.2 billion. This
increase mainly reflected steady growth in the elevators and escalators business in China and higher revenues inplant-related equipment and construction.
Segment profit increased 2% compared with the nine months ended December 31, 2011, to ¥14.5 billion,
due mainly to higher earnings in the elevators and escalators business owing to higher sales. This increase waspartially offset by lower earnings in social infrastructure systems and plant-related equipment and construction.
(Electronic Systems & Equipment)
Revenues decreased 7% compared with the nine months ended December 31, 2011, to ¥728.9 bullion.
This decrease reflected lower revenues due to decreased sales of medical analysis systems and display-related
manufacturing equipment at Hitachi High-Technologies Corporation.
Segment profit decreased 32% compared with the nine months ended December 31, 2011, to ¥20.3 billion.
(Construction Machinery)
Revenues increased 1% compared with the nine months ended December 31, 2011, to ¥546.5 billion. This
increase reflects strong sales to the rental industry in North America, despite lower sales of hydraulic excavators in
China, etc.
Segment profit decreased 18% compared with the nine months ended December 31, 2011, to ¥32.1 billion,
due mainly to lower sales in China.
(High Functional Materials & Components)
Revenues decreased 5% compared with the nine months ended December 31, 2011, to ¥1,006.2 billion,
due to lower sales at Hitachi Cable, Ltd. owing to downward pressure on sales prices resulting from a drop in the priceof copper and the withdrawal from unprofitable businesses and lower sales at Hitachi Chemical Co., Ltd. and Hitachi
Metals, Ltd.
Segment profit decreased 19% compared with the nine months ended December 31, 2011, to ¥46.2 billion.
This was mainly attributable to lower revenues and the impact of falling raw materials prices at Hitachi Metals,
Ltd. This worsening is partially offset by higher earnings at Hitachi Cable, Ltd. due to reduction in fixed costs
resulted from business structure reforms and a cost-reduction measures.
(Automotive Systems)
Revenues increased 4% compared with the nine months ended December 31, 2011, to ¥592.8 billion, as aresult of a recovery from the Great East Japan Earthquake and solid automobile demand in the U.S. This increase waspartially offset by Japanese automobile manufacturers’ reduction of production in China.
Segment profit decreased 3% compared with the nine months ended December 31, 2011, to ¥25.9 billion,
due mainly to worsened capacity utilization in line with Japanese automobile manufacturers’ adjustment of
production in Japan and reduction of production in China.
(Digital Media & Consumer Products)
Revenues decreased 6% compared with the nine months ended December 31, 2011, to ¥626.9 billion, due
mainly to lower demand for flat-panel TVs and lower sales of optical disk drive-related products owing to the impactof lower sales prices.
Segment profit worsened ¥2.8 billion, resulting in a loss of ¥2.3 billion, compared with the nine months
ended December 31, 2011, due mainly to the business restructuring costs in the flat-panel TV business, lower salesof optical disk drive-related products and falling in sales prices of room air conditioners, etc. mainly in the Japanesemarket.
(Financial Services)
Revenues decreased 2% compared with the nine months ended December 31, 2011, to ¥260.2 billion, due
mainly to lower revenues in the finance services business for corporate customers in Japan at Hitachi Capital
Corporation. This decrease was partially offset by a strong performance in the overseas at Hitachi Capital
Corporation, particularly in Asia.
Segment profit decreased 3% compared with the nine months ended December 31, 2011, to ¥19.8 billion.

5

(Others)
Revenues decreased 37% compared with the nine months ended December 31, 2011, to ¥823.1 billion, due
mainly to the sale of hard disk drives business in the year ended March 31, 2012.
Segment profit decreased 47% compared with the nine months ended December 31, 2011, to ¥29.6 billion.
Revenues by Market
Revenues in Japan in the nine months ended December 31, 2012 were ¥3,797.1 billion, a decrease of 2%
compared with the nine months ended December 31, 2011, due mainly to lower revenues in the High Functional
Materials & Components segment owing to the impact of lower demand in the electronics field and in the Others
segment owing to the impact of selling the hard disk drives business. This decrease was partially offset by higher
revenues in the Information & Telecommunication Systems segment owing to strong sales of services business inJapan, and the Power Systems segment owing to recovery from the Great East Japan Earthquake.
Overseas revenues were ¥2,671.5 billion, a decrease of 10% compared with the nine months ended
December 31, 2011, due mainly to significant decrease in revenues in the Others segment owing to the impact ofselling the hard disk drives business. This decrease was partially offset by higher revenues in the Social
Infrastructure & Industrial Systems segment due to steady growth in the elevators and escalators business in China, theInformation & Telecommunication Systems and the Power Systems segments.
As a result, the ratio of overseas revenues to total revenues was 41% in the nine months ended December
31, 2012, compared with 44% in the nine months ended December 31, 2011.
(2) Summary of Financial Condition, etc.
Liquidity and Capital Resources
During the nine months ended December 31, 2012, there was 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 and fundraising.
Cash Flows(Cash flows from operating activities)
Net income in the nine months ended December 31, 2012 decreased ¥29.7 billion compared with the ninemonths ended December 31, 2011, to ¥94.3 billion, due primarily to decreased operating income. An increase inreceivables of ¥15.2 billion in the nine months ended December 31, 2011 changed to a decrease in receivables of¥269.0 billion in the nine months ended December 31, 2012. This is because collection of receivables wasadversely affected by delay in shipment of products and customers’ acceptance inspection caused by the Great East
Japan Earthquake in the nine months ended December 31, 2011 while collection of receivables recorded at the endof the fiscal year ended March 30, 2012 proceeded in the nine months ended December 31, 2012. As a result of
the foregoing, cash flows from operating activities recorded net cash inflow of ¥245.3 billion in the nine months
ended December 31, 2012, an increase of ¥144.7 billion compared with the nine months ended December 31,
2011.
(Cash flows from investing activities)
A net sum of ¥367.0 billion in the nine months ended December 31, 2012 was recorded as investments
mainly related to property, plant and equipment, where the collection of investments in leases, the proceeds from
disposal of property, plant and equipment and the proceeds from disposal of tangible assets and software to beleased were subtracted from the amount of the capital expenditures, the purchase of intangible assets and thepurchase of tangible assets and software to be leased. This net sum increased by ¥127.0 billion compared with
the nine months ended December 31, 2011. Purchase of investments in securities and shares of newly
consolidated subsidiaries in the nine months ended December 31, 2012 increased ¥44.8 billion compared with
the nine months ended December 31, 2011, to ¥160.5 billion, due primarily to the purchase of shares of Horizon
Nuclear Power Limited in the nine months ended December 31, 2011. Proceeds from sale of investments insecurities and shares of consolidated subsidiaries resulting in deconsolidation in the nine months ended
December 31, 2012 increased ¥27.1 billion compared with the nine months ended December 31, 2011, to ¥59.6
billion, due mainly to selling shares of TCM Corporation in the nine months ended December 31, 2012. As aresult of the foregoing, cash flows from investing activities recorded net cash outflow of ¥453.6 billion in thenine months ended December 31, 2012, an increase of ¥148.8 billion compared with the nine months ended
December 31, 2011.

6

(Cash flows from financing activities)
Net increase in short-term debt was ¥392.5 billion. This was a decrease of ¥91.9 billion compared with thenine months ended December 31, 2011, due primarily to the issuance of commercial paper ready to cope with jittery
credit markets after the Great East Japan Earthquake in the nine months ended December 31, 2011. A net sum of¥121.3 billion in the nine months ended December 31, 2012 was recorded as payments related to long-term debt,
where the payments on long-term debt were subtracted from the proceeds from long-term debt. This net outflow
decreased by ¥64.9 billion compared with the nine months ended December 31, 2011. Dividends paid to Hitachi,Ltd. stockholders was ¥46.6 billion, an increase of ¥19.5 billion. As a result of the foregoing, cash flows fromfinancing activities recorded net cash inflow of ¥173.7 billion in the nine months ended December 31, 2012, a
decrease of ¥74.9 billion compared with the nine months ended December 31, 2011.
As a result of the foregoing, in the nine months ended December 31, 2012, cash and cash equivalents was¥606.5 billion as of December 31, 2012, a decrease of ¥12.9 billion from March 31, 2012. Free cash flows, thesum of cash flows from operating and investing activities, were an outflow of ¥208.3 billion in the nine months
ended December 31, 2012, a decrease of ¥4.1 billion compared with the nine months ended December 31, 2011.
Assets, Liabilities and Equity
Total assets as of December 31, 2012 were ¥9,646.5 billion, an increase of ¥228.0 billion from March 31,
2012. This was due mainly to an increase in inventories owing to seasonal reasons and the acquisition of
Horizon Nuclear Power Limited.
Total interest-bearing debt as of December 31, 2012, which is the sum of short-term debt, long-term debt
and non-recourse borrowings of consolidated securitization entities, was ¥2,681.3 billion, a ¥284.9 billion
increase from March 31, 2012. This was due mainly to an increase in short-term debt, mainly owing to theissuance of commercial paper.
Total Hitachi, Ltd. stockholders’ equity as of December 31, 2012 increased by ¥122.1 billion from March
31, 2012, to ¥1,893.9 billion, due mainly to recording of net income attributable to Hitachi, Ltd. stockholders andconversion of the Company’s bonds with stock acquisition rights into stocks. As a result, the ratio of stockholders’equity to total assets was 19.6%, compared with 18.8% as of March 31, 2012.
Noncontrolling interests as of December 31, 2012 increased by ¥43.7 billion from March 31, 2012, to¥1,045.9 billion.
The ratio of the interest-bearing debt to the total equity (the sum of total Hitachi, Ltd. stockholders’ equity
and noncontrolling interests) increased to 0.91, compared with 0.86 as of March 31, 2012.
(3) Challenges Facing Hitachi Group

1) Business and Financial Condition
There was no material change in Hitachi’s business strategy during the nine months ended December 31,
2012.
2) Fundamental Policy on the Conduct of Persons Influencing Decision on the Company’s Financial andBusiness Policies
The Group invests a great deal of business resources in fundamental research and in the development ofmarket-leading products and businesses that will bear fruit in the future, and realizing the benefits from thesemanagement policies requires that they be continued for a set period of time. For this purpose, the Company
keeps its shareholders and investors well informed of not just the business results for each period but also of theCompany’s business policies for creating value in the future.
The Company does not deny the significance of the vitalization of business activities and performance thatcan be brought about through a change in management control, but it recognizes the necessity of determining
the impact on company value and the interests of all shareholders of the buying activities and buyout proposals
of parties attempting to acquire a large share of stock of the Company or a Group company by duly examining
the business description, future business plans, past investment activities, and other necessary aspects of such aparty.
There is no party that is currently attempting to acquire a large share of the Company’s stocks nor is therea specific threat, neither does the Company intend to implement specified so-called anti-takeover measures inadvance of the appearance of such a party, but the Company does understand that it is one of the natural duties
bestowed upon it by the shareholders and investors to continuously monitor the state of trading of theCompany’s stock and then to immediately take what the Company deems to be the best action in the event of
the appearance of a party attempting to purchase a large share of the Company’s stock. In particular, together
7with outside experts, the Company will evaluate the buyout proposal of the party and hold negotiations with thebuyer, and if the Company deems that said buyout will not maintain the Company’s value and is not in the bestinterest of the shareholders, then the Company will quickly determine the necessity, content, etc., of specificcountermeasures and prepare to implement them. The same response will also be taken in the event a party
attempts to acquire a large percentage of the shares of a Group company.
(4) Research and Development
There was no material changes in the research and development of the Hitachi Group (the Company andconsolidated subsidiaries) stated in the Annual Securities Report for the 143rd business term pursuant to the
Financial Instruments and Exchange Act of Japan. The Hitachi Group’s R&D expenditures in the nine months
ended December 31, 2012 were ¥248.1 billion, 3.8% of revenues. A breakdown of R&D expenditures bysegment is shown below.
(Billions of yen)
Nine months ended
Segment
December 31, 2012
Information & Telecommunication Systems
59.3
Power Systems
13.8
Social Infrastructure & Industrial Systems
17.1
Electronic Systems & Equipment
31.6
Construction Machinery
12.4
High Functional Materials & Components
32.7
Automotive Systems
42.2
Digital Media & Consumer Products
15.2
Financial Services
0.1
Others5.3
Corporate
18.0
Total
248.1
(5) Forward-Looking Statements
Certain statements found in “3. Analyses of Consolidated Financial Position, 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.” 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 projectedor 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 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, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the majorindustrial 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 andintensifying 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 such products;
rapid technological innovation;

8

•
•
•
•
•
•
•
•

•
•
•
•
•
•
•
•

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 ascopper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts andcomponents;
fluctuations in product demand and industry capacity;
uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in
product demand, exchange rates and/or price of raw materials or shortages of materials, parts and components;
uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy 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 and conditions and labor relations;
uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may not control,with other corporations in the design and development of certain key products;
uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly thoserelated to electronics and data processing technologies;
uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which theCompany, 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; anduncertainty 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 elsewhere in thisreport and in other materials published by Hitachi.

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

Common stock

Total number of shares authorized to be issued(shares)
10,000,000,000

Total

10,000,000,000

Class2) Issued shares

Class

Number of shares
Number of sharesissued as of the end issued as of the filing Stock exchange on whichof third quarter ofdate (shares)
the Company is listed
fiscal year (shares)(February 12, 2013)(December 31, 2012)

Description

Commonstock

4,746,438,220

4,833,463,387

Tokyo, Osaka, Nagoya

The number ofshares per one unit ofshares is 1,000
shares.

Total

4,746,438,220

4,833,463,387－－(2) Information on the stock acquisition rights, etc.
Not applicable.
(3) Information on moving strike convertible bonds, etc.
Not applicable.
(4) Information on shareholder right plans
Not applicable.
(5) Changes in the total number of issued shares and the amount of common stock and other

Date

Change in the Balance of the Change in Balance of Change in Balance of
total number total number of common
commoncapitalcapitalof issued
stock
stock
reserve
reserveissued sharesshares(Millions of (Millions of (Millions of (Millions of(shares)(shares)
yen)
yen)
yen)
yen)

From October 1, 2012
5,734
444,967
5,734
162,963
to December 31, 2012 (Note) 36,179,737 4,746,438,220(Note) Changes due to conversion of bond with stock acquisition rights into stocks. As a result of conversionof bond with stock acquisition rights into stocks during the period from January 1, 2013 to January 10,2013, the number of issued shares, the amount of common stock and the amount of capital reserve
increased 87,025,167 shares, ¥13,793 million and ¥13,793 million respectively.
(6) Major shareholders
Not applicable.

10(7) Information on voting rights
Information on voting rights as of September 30, 2012 is stated in this item because the Company does not
identify the number of voting rights as of December 31, 2012 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 voting rights ofsuch entity as of December 31, 2012.
1) Issued sharesClassification

Number of shares (shares)

Shares without voting right
Shares with restricted voting
right (treasury stock, etc.)
Shares with restricted voting
right (others)
Shares with full voting right(treasury stock, etc.)
Shares with full voting right(others)
Shares less than one unit

－

－

－

－

－

－

－

－

－

－

－

Common stock

2,901,000

Common stock

4,679,914,000

4,679,914－

Common stock

27,443,483－－

4,710,258,483－－

4,679,914－

Number of issued shares
Total number of voting rights(Note)(As of September 30, 2012)
Number of voting
Description
rights－The “Shares with full voting right (others)” column includes 26,000 shares registered in the name ofJapan Securities Depository Center, Incorporated (account for managing stocks whose shareholders
have not transferred titles) and 26 voting rights for those shares.
2) Treasury stock, etc.

Name ofshareholder

Hitachi, Ltd.
Aoyama Special
Steel Co., Ltd.
ISHIIDENKOSHA
Co., Ltd.
SAITAKOUGYOU CO.,LTD.

Address

6-6, Marunouchi 1-chome,
Chiyoda-ku, Tokyo
9-11, Shinkawa 2-chome,
Chuo-ku, Tokyo
1-11, Oroshishinmachi
3-chome, Higashi-ku,
Niigata-shi, Niigata

Number of
Number ofshares held
shares held
under theunder own name names of(shares)others(shares)(As of September 30, 2012)
Ownership
percentage to
Total shares
the total
held (shares)
number ofissued shares(%)

2,730,000－

2,730,000

0.06

10,000－10,000

0.00

1,000

－

1,000

0.00

88,000－88,000

0.00

5,000

－

5,000

0.00

5-3, Takinogawa 5-chome,
Kita-ku, Tokyo

52,000－52,0000.00

Mizuho Co., Inc.

9-5, Minami-Shinagawa
4-chome, Shinagawa-ku,
Tokyo
3268, Nagaoka,
Ibarakimachi,
Higashiibaraki-gun, Ibaraki
4-1, Koishikawa 5-chome,
Bunkyo-ku, Tokyo

15,000－15,000

0.00

Total

－

2,901,000－

2,901,000

0.06

NIKKO SHOKAI
CO., LTD.
Nitto Jidosha
Kiki K.K.

11

2. Change in Senior Management
There has been no change in senior management from the filing date of the Annual Securities Report for the
143rd business term pursuant to the Financial Instruments and Exchange Act of Japan to December 31, 2012.
IV. Financial Information
Refer to the consolidated financial statements incorporated in this Quarterly Report.

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

12

CONSOLIDATED BALANCE SHEETS
Hitachi, Ltd. and Subsidiaries
December 31, 2012 and March 31, 2012

AssetsCurrent assets:
Cash and cash equivalents (note 5)
Short-term investments (note 3)
Trade receivables, net of allowance for doubtful receivables of¥32,295 million as of December 31, 2012 and¥31,182 million as of March 31, 2012:
Notes (notes 5, 13 and 21)
Accounts (notes 5 and 21)
Investments in leases (notes 5 and 21)
Current portion of financial assets transferred
to consolidated securitization entities (notes 5 and 21)
Inventories (note 4)
Prepaid expenses and other current assets
Total current assets
Investments and advances, including affiliated companies (note 3)
Property, plant and equipment:
Land
Buildings
Machinery and equipment
Construction in progress
Less accumulated depreciation
Net property, plant and equipment
Intangible assets (note 6)
Goodwill
Other intangible assets
Total intangible assets
Financial assets transferred toconsolidated securitization entities (notes 5 and 21)
Other assets (note 21)
Total assets
See accompanying notes to consolidated financial statements.

F-1

December 31,
2012

Millions of yen
March 31,2012

606,589
9,553

619,577
11,562

124,100
2,054,402
243,913

117,951
2,225,519
235,744

58,3401,610,010
490,377
5,197,284

86,071
1,413,252
452,510
5,162,186

721,355

744,493

517,524
1,911,564
5,166,972
106,788
7,702,848
5,498,610
2,204,238

464,093
1,847,292
5,109,865
90,687
7,511,937
5,486,399
2,025,538

269,494
403,171672,665

214,707395,255
609,962

157,092
693,9029,646,536

205,411
670,936
9,418,526

December 31,
2012

Millions of yen
March 31,2012

959,344
342,973

531,446
384,110

38,46797,004

14,949
1,148,875
807,808
27,569374,242
500,869
4,215,096

24,0251,301,759
896,096
75,217362,895
438,321
4,110,873

1,230,206

1,248,851

110,400
857,535
293,355
6,706,592

135,043
890,977
258,787
6,644,531

Equity (note 12):
Common stock (note 9)
Capital surplus
Legal reserve and retained earnings (note 11)
Accumulated other comprehensive loss
Treasury stock, at cost (note 10)
Total Hitachi, Ltd. stockholders’ equity
Noncontrolling interests (note 12)
Total equity

444,997612,284
1,245,754(407,555)(1,514)
1,893,966
1,045,9782,939,944

427,775
600,243
1,242,110(496,896)(1,450)1,771,782
1,002,213
2,773,995

Total liabilities and equity

9,646,536

9,418,526

Liabilities and Equity
Current liabilities:
Short-term debt
Current portion of long-term debt
Current portion of non-recourse borrowingsof consolidated securitization entities (note 5)
Trade payables:
Notes
Accounts
Accrued expenses (note 13)
Income taxes
Advances received
Other current liabilities
Total current liabilities
Long-term debt
Non-recourse borrowings of consolidated
securitization entities (note 5)
Retirement and severance benefits
Other liabilities
Total liabilities
Commitments and contingencies (note 13)

See accompanying notes to consolidated financial statements.

F-2

CONSOLIDATED STATEMENTS OF OPERATIONSAND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Hitachi, Ltd. and Subsidiaries
Nine months ended December 31, 2012 and 2011
Consolidated Statements of Operations

Revenues

Millions of yen
2012
2011
6,468,701
6,837,676

Cost of sales
Selling, general and administrative expenses(4,858,661)(1,378,105)(5,131,555)(1,440,392)

Impairment losses for long-lived assets (note 14)
Restructuring charges (note 15)
Interest income
Dividends income
Other income (note 16)
Interest charges
Other deductions (note 16)
Equity in net loss of affiliated companies
Income before income taxes(8,560)(10,156)
8,931
4,705
8,910
(20,299)(1,272)(38,519)
175,675(12,222)(13,728)
9,657
4,614
23,372(20,793)(25,254)(14,385)
216,990

Income taxes
Net income(81,289)
94,386(92,851)
124,139

Less net income attributable to noncontrolling interests
Net income attributable to Hitachi, Ltd. stockholders

44,02850,35838,91085,229

10.80
10.42

Yen
18.87
17.64

Net income attributable to Hitachi, Ltd. stockholders per share (note 17):
Basic
DilutedConsolidated Statements of Comprehensive Income

Net income

Millions of yen
2012
2011
94,386
124,139

Other comprehensive income (loss) arising during the period
Foreign currency translation adjustments
Pension liability adjustments
Net unrealized holding gain (loss) on available-for-sale securities
Cash flow hedges
Total other comprehensive income (loss) arising during the period
Comprehensive income
Less comprehensive income attributable to noncontrolling interests
Comprehensive income attributable to Hitachi, Ltd. stockholders

67,07351,382
7,226(13,765)
111,916
206,302
68,118138,184

See accompanying notes to consolidated financial statements.

F-3(83,358)
40,716(14,370)355(56,657)
67,482
11,90655,576

CONSOLIDATED STATEMENTS OF OPERATIONSAND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Hitachi, Ltd. and Subsidiaries
Three months ended December 31, 2012 and 2011
Consolidated Statements of Operations

Revenues

Millions of yen
2012
2011
2,113,133
2,264,947

Cost of sales
Selling, general and administrative expenses(1,586,189)(458,613)(1,696,127)(473,705)

Impairment losses for long-lived assets (note 14)
Restructuring charges (note 15)
Interest income
Dividends income
Other income (note 16)
Interest charges
Other deductions (note 16)
Equity in net earnings (loss) of affiliated companies
Income before income taxes(2,330)(5,632)
3,017
1,544
15,113(6,570)(2,910)(11,146)
59,417(6,047)(12,558)
2,375
622
20,076(6,785)(9,086)
268
83,980

Income taxes
Net income(30,544)
28,873(37,564)
46,416

Less net income attributable to noncontrolling interests
Net income attributable to Hitachi, Ltd. stockholders

8,640
20,233

12,13634,280

4.29
4.19

Yen
7.59
7.10

Net income attributable to Hitachi, Ltd. stockholders per share (note 17):
Basic
DilutedConsolidated Statements of Comprehensive Income

Net income

Millions of yen
2012
2011
28,873
46,416

Other comprehensive income (loss) arising during the period
Foreign currency translation adjustments
Pension liability adjustments
Net unrealized holding gain (loss) on available-for-sale securities
Cash flow hedges
Total other comprehensive income (loss) arising during the period
Comprehensive income
Less comprehensive income attributable to noncontrolling interests
Comprehensive income attributable to Hitachi, Ltd. stockholders

108,135
18,657
23,249(14,796)
135,245
164,118
46,350117,768

See accompanying notes to consolidated financial statements.

F-4(18,999)
12,774(585)
347(6,463)39,953
9,779
30,174

CONSOLIDATED STATEMENTS OF CASH FLOWS
Hitachi, Ltd. and Subsidiaries
Nine months ended December 31, 2012 and 2011
Millions of yen
2012

2011

94,386

124,139

219,71685,751
8,560
38,519(11,268)
4,461
1,291
269,055(200,561)(3,485)(197,603)(73,787)(39,445)
20,843
10,663
18,239262,387
85,652
12,222
14,385(2,510)13,569(22,743)(15,228)(393,435)(5,281)79,757(108,090)(709)
26,63526,232
3,651

245,335

100,633(271,885)(72,381)(255,690)
15,801
12,446204,671(160,554)(223,827)(72,094)(196,998)
39,774
14,070199,132(115,671)

59,687
14,25032,57318,197(453,655)(304,844)

392,569
242,311(363,614)
1,988(46,672)(24,408)(107)
21(28,031)102(382)

484,498
288,137(474,380)
409(27,093)(21,026)(86)
27(1,492)
4(290)

173,777

248,708

Effect of exchange rate changes on cash and cash equivalents

21,555(37,457)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(12,988)619,577

7,040
554,810

Cash and cash equivalents at end of period

606,589

561,850

Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation
Amortization
Impairment losses for long-lived assets
Equity in net loss of affiliated companies
Gain on sale of investments in securities and other
Impairment of investments in securities(Gain) loss on disposal of rental assets and other property(Increase) decrease in receivables
Increase in inventories
Increase in prepaid expenses and other current assets
Increase (decrease) in payables
Decrease in accrued expenses and retirement and severance benefits
Decrease in accrued income taxes
Increase in other current liabilities
Net change in lease receivables related to the Company’s and its subsidiaries’ products
Other
Net cash provided by operating activities
Cash flows from investing activities:
Capital expenditures
Purchase of intangible assets
Purchase of tangible assets and software to be leased
Proceeds from disposal of property, plant and equipment
Proceeds from disposal of tangible assets and software to be leased
Collection on investments in leases
Purchase of investments in securities and shares of newly consolidated subsidiaries
Proceeds from sale of investments in securities and shares of consolidated
subsidiaries resulting in deconsolidation
Other
Net cash used in investing activities
Cash flows from financing activities:
Increase in short-term debt, net
Proceeds from long-term debt
Payments on long-term debt
Proceeds from sale of common stock by subsidiaries
Dividends paid to Hitachi, Ltd. stockholders
Dividends paid to noncontrolling interests
Acquisition of common stock for treasury
Proceeds from sales of treasury stock
Purchase of shares of consolidated subsidiaries from noncontrolling interest holders
Proceeds from sale of shares of consolidated subsidiaries from noncontrolling interest holders
Other
Net cash provided by financing activities

See accompanying notes to consolidated financial statements.

F-5

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

(1)

Nature of Operations
Hitachi, Ltd. (the Company) is a Japanese corporation, whose principal office is located in Japan. The
Company’s and its subsidiaries’ businesses are diverse, and include information and telecommunication
systems, power systems, social infrastructure and industrial systems, electronic systems and equipment,
construction machinery, high functional materials and components, automotive systems, digital media andconsumer products, financial services, and others including logistics services.

(2)

Basis of Presentation and Summary of Significant Accounting Policies(a) Basis of Presentation
The Company and its domestic subsidiaries keep their books of account in accordance with thefinancial accounting standards of Japan, and its foreign subsidiaries in accordance with those of thecountries of their domicile.
The consolidated financial statements presented herein have been prepared to reflect theadjustments which are necessary to conform to accounting principles generally accepted in the
United States of America. Management of the Company has made a number of estimates andassumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets
and liabilities to prepare these financial statements. Actual results could differ from thoseestimates.
(b)

Principles of Consolidation
The consolidated financial statements include the accounts of the Company, its majority-owned
subsidiaries and all variable interest entities (VIEs) for which the Company or any of its
consolidated entities is the primary beneficiary. The definition of a VIE is included in AccountingStandards Codification (ASC) 810, “Consolidation.” This guidance addresses how a businessenterprise should evaluate whether it has a controlling financial interest in an entity through meansother than voting rights and accordingly should consolidate the entity. The consolidated financial
statements include accounts of certain subsidiaries whose closing dates differ from December 31
by 93 days or less to either comply with local statutory requirements or facilitate timely reporting.
There have been no significant transactions, which would materially affect the Company’s
financial position and results of operations, with such subsidiaries during the period from theirclosing dates to December 31. Intercompany accounts and significant intercompany transactions
have been eliminated in consolidation.
Investments in corporate joint ventures and affiliated companies, where the Company has theability to exercise significant influence over operational and financial policies generally by holding
20 - 50% ownership, are accounted for under the equity method. Investments where the Company
does not have significant influence are accounted for under the cost method.

(c)

Income Taxes
The Company computes interim income tax provisions by applying an estimated annual effective
tax rate, which is reasonably determined considering the factors that will affect the tax rate
including non-taxable transactions, tax credits and valuation allowances, to income before income
taxes in accordance with the provisions for interim reporting included in ASC 740, “Income
Taxes.” The effect of a change in judgment about the realization of deferred tax assets in futureyears is recognized in the interim period in which the change occurs.

F-6

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012(d)

Subsequent Events
The Company has evaluated up to February 12, 2013, the date on which its consolidated financial
statements were available to be issued in accordance with the provisions of ASC855, "Subsequent
Events."(e)

A Change in Accounting Estimate Effected by a Change in Accounting Principle
Property, Plant and Equipment
Property, plant and equipment are stated at cost. Property, plant and equipment are principally
depreciated using the straight-line method, mainly over the following estimated useful lives:
Buildings
Buildings and building equipment
Structures
Machinery and equipment
Machinery
VehiclesTools, furniture and fixtures

3 to 50 years
7 to 60 years
4 to 15 years
4 to 7 years
2 to 20 years

Effective April 1, 2012, the Company and its domestic subsidiaries changed their depreciation
method from the declining-balance method to the straight-line method.
Based on the 2012 Mid-term Management Plan which covers a three year period ending March 31,
2013, the Company and its domestic subsidiaries have been making revisions to their businessportfolio to move away from high volatility businesses, strengthen and focus on the Social
Innovation businesses which aim to produce stable operating results over a long period of time. In
developing their global business strategies, the Company and its domestic subsidiaries areaccelerating construction of their global production systems to capture the expanding demand for
the Social Innovation businesses. Accordingly, domestic property, plant and equipment will be
operated consistently and utilization of the domestic property, plant and equipment will be also
more consistent than before.
The Company and its domestic subsidiaries believe that the new method is preferable as it betterreflects the pattern of consumption of the benefits derived from those assets and makes a better
cost allocation to match revenues generated by those assets during their estimated useful lives. In
accordance with the “Change in Accounting Estimate” provisions of ASC 250, “Accounting
Changes and Error Corrections,” the change in depreciation method is accounted for on aprospective basis from the beginning of the period of change and results for prior periods have notbeen restated.
The effect of the change was to increase income before income taxes for the nine months and threemonths ended December 31, 2012 by ¥7,770 million and ¥3,194 million, respectively and net
income attributable to Hitachi, Ltd. stockholders for the nine months and three months ended
December 31, 2012 by ¥6,576 million and ¥2,692 million, respectively, or per share (basic) for thenine months and three months ended December 31, 2012 by ¥1.41 and ¥0.57, respectively and pershare (diluted) for the nine months and three months ended December 31, 2012 by ¥1.36 and¥0.56, respectively.
The effect on segment information is stated in note 23.

F-7

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

(3)

Investments in Securities and Affiliated Companies
Short-term investments as of December 31, 2012 and March 31, 2012 are as follows:
Millions of yen
December 31,
March 31,2012
2012
Investments in securities:
Available-for-sale securities
Government debt securities
6,203
4,452
Corporate debt securities
3,129
6,954
Other securities
149
84
Held-to-maturity securities
72
72
9,553
11,562
Investments and advances, including affiliated companies as of December 31, 2012 and March 31,
2012 are as follows:
Millions of yen
December 31,
March 31,2012
2012
Investments in securities:
Available-for-sale securities
Equity securities
227,011
220,491
Government debt securities
955
329
Corporate debt securities
18,986
24,732Other securities
8,709
7,467
Held-to-maturity securities
323
321
Cost-method investments
54,99956,174
Investments in affiliated companies
263,671309,733
Advances and other146,701
125,246
721,355
744,493

F-8

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The following tables are summaries of the amortized cost basis, gross unrealized holding gains, grossunrealized holding losses and aggregate fair value of available-for-sale securities by the consolidatedbalance sheet classifications as of December 31, 2012 and March 31, 2012.
Millions of yen
December 31, 2012
Amortized
Gross
Gross
Aggregatecost basis
gains
lossesfair value
Short-term investments:
Government debt securities
6,203
6,203
Corporate debt securities
2,941
189
1
3,129
Other securities
148
1
149
9,292
190
1
9,481
Investments and advances:
Equity securities
153,299
74,9991,287
227,011Government debt securities
935
21
1
955
Corporate debt securities
17,116
1,893
23
18,986
Other securities
8,577
158
26
8,709
179,927
77,071
1,337
255,661
189,219
77,261
1,338
265,142

Amortized
cost basis
Short-term investments:
Government debt securities
Corporate debt securities
Other securities
Investments and advances:
Equity securities
Government debt securities
Corporate debt securities
Other securities

Gross
gains

Millions of yen
March 31, 2012
Gross
Aggregate
lossesfair value

4,452
6,481
83
11,016

490
1
491

17
17

4,452
6,954
84
11,490155,908
311
23,201
7,379
186,799
197,81565,89918
1,679
133
67,72968,220

1,316
148
45
1,509
1,526

220,491
329
24,732
7,467
253,019
264,509

F-9

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The following tables are summaries of gross unrealized holding losses on available-for-sale securities
and the fair value of the related securities, aggregated by investment category and length of time that
individual securities have been in a continuous unrealized loss position, as of December 31, 2012 andMarch 31, 2012.
Millions of yen
December 31, 2012
Less than 12 months
12 months or longer
Aggregate
Gross
Aggregate
Grossfair value
lossesfair value
lossesShort-term investments:
Corporate debt securities
499
1
Investments and advances:
Equity securities
Government debt securities
Corporate debt securities
Other securities

7,454
322
498
8,274
8,274

576
1
2
579
579

Investments and advances:
Equity securities
Corporate debt securities
Other securities

711
21
26
758
759

Millions of yen
March 31, 2012
12 months or longer
Aggregate
Grossfair value
lossesLess than 12 months
Aggregate
Grossfair value
lossesShort-term investments:
Corporate debt securities

2,576
1,479
215
4,270
4,769

2,847

9

1,691

8

5,509
7,227
12,736
15,583

535
118
653
662

3,832
2,770
202
6,804
8,495

781
30
45
856
864

Equity securities consist primarily of stocks issued by Japanese and the U.S. listed companies.
Government debt securities consist primarily of Japan treasury bonds. Corporate debt securities consist
primarily of structured bonds. Other securities consist primarily of investment funds.

F-10

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The following table represents the purchases, proceeds from the sale, gross realized gains on the sale,and gross realized losses on the sale of available-for-sale securities for the nine months ended
December 31, 2012 and 2011.
Nine months
ended
December 31,
2012
7,218
6,828
2,940
30

Purchases
Proceeds from the sale
Gross realized gains on the sale
Gross realized losses on the sale

Millions of yen
Nine months
ended
December 31,
2011
16,174
1,091
401
185

The following table represents the purchases, proceeds from the sale, gross realized gains on the sale,and gross realized losses on the sale of available-for-sale securities for the three months ended
December 31, 2012 and 2011.
Three months
ended
December 31,
2012
772
3,537
1,760
24

Purchases
Proceeds from the sale
Gross realized gains on the sale
Gross realized losses on the sale

Millions of yen
Three months
ended
December 31,
2011
1,500
124
12
185

The contractual maturities of debt securities and other securities classified as investments and advancesin the consolidated balance sheet as of December 31, 2012 are as follows:
Held-tomaturity
Due within five years
Due after five years through ten years
Due after ten years

323
323

Millions of yen
Availablefor-saleTotal
12,7171,350
14,58328,65013,0401,350
14,583
28,973

Expected redemptions may differ from contractual maturities because some of these securities are
redeemable at the option of the issuers.
The aggregate carrying amounts of cost-method investments which were not evaluated for impairment
as of December 31, 2012 and March 31, 2012 were ¥54,630 million and ¥56,166 million, respectively,
mainly because it was not practicable to estimate the fair value of the investments due to lack of amarket price and difficulty in estimating fair value without incurring excessive cost and the Company
did not identify any events or changes in circumstances that might have had a significant adverse effecton their fair value.
F-11

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

(4)

Inventories
Inventories as of December 31, 2012 and March 31, 2012 are summarized as follows:

Finished goods
Work in process
Raw materials(5)

December 31,
2012
582,978
770,196
256,836
1,610,010

Millions of yen
March 31,2012
538,634
606,228
268,390
1,413,252

Securitizations
The Company and certain subsidiaries securitize certain financial assets, such as lease, trade andmortgage loans receivable, and arrange other forms of asset-backed financing for the purpose ofproviding diversified and stable fund raising as part of their ongoing securitization activities.
Historically, they have used Hitachi-supported and third-party Special Purpose Entities (SPEs) to
execute securitization transactions funded with commercial paper and other borrowings. These
securitization transactions are similar to those used by many financial institutions.
Investors in these entities only have recourse to the assets owned by the entity and not to their generalcredit, unless noted below. The Company and certain subsidiaries do not provide non-contractual
support to SPEs and do not have implicit support arrangements with any SPEs. The majority of theirinvolvement with SPEs related to the securitization activities are assisting in the formation andfinancing of an entity, providing limited credit enhancements, servicing the assets and receiving fees
for services provided.
A portion of these lease, trade and mortgage loans receivable is transferred to SPEs sponsored byfinancial institutions, which operate those SPEs as a part of their businesses. Accordingly, the amountof assets transferred by the Company and its subsidiaries is considerably small compared to the total
assets of the SPEs sponsored by these financial institutions that purchase a large amount of assets fromentities other than the Company and its subsidiaries. In certain transactions, investors have recoursewith a scope that is considerably limited.
The transferred assets have similar risks and characteristics to the Company’s and certain subsidiaries’
receivables recorded on the consolidated balance sheets. Accordingly, the performance, such ascollections or expected credit loss, of these transferred assets has been similar to the receivables
recorded on the consolidated balance sheets for the Company and certain subsidiaries; however, theblended performance of the pools of transferred assets reflects the eligibility screening requirementsthat the Company and certain subsidiaries apply to determine which receivables are selected fortransfer. Therefore, the blended performance may differ from receivables recorded on the consolidatedbalance sheets.
Consolidated SPEs
The Company consolidated SPEs mainly because the Company has both the power to direct theactivities of the SPEs that most significantly impact the SPEs’ economic performance and theobligation to absorb losses or the right to receive benefits that could potentially be significant to theSPEs. The consolidated SPEs are mainly trusts for the securitizations of lease receivables and mortgage
loans receivable.

F-12

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The tables below summarize the assets and liabilities of the consolidated SPEs as of December 31,
2012 and March 31, 2012 by type of transferred financial assets that those SPEs hold:Millions of yen
December 31, 2012
Mortgage
Lease
loans
receivables
receivable
OthersTotal
Cash and cash equivalents
7,357
2,376
968
10,701
Current portion of financial assets transferred toconsolidated securitization entities
41,071
10,481
6,788
58,340Financial assets transferred to consolidated
securitization entities
20,784135,235
1,073
157,092
Current portion of non-recourse borrowings ofconsolidated securitization entities：
Loans, mainly from banks
Beneficial interests in trusts

10,476
8,668
19,144

12,664
12,664

6,659
6,659

10,47627,991
38,467

330
651
981

108,988108,988

431
431

330
110,070
110,400

Non-recourse borrowings ofconsolidated securitization entities:
Loans, mainly from banks
Beneficial interests in trusts

Millions of yen
March 31, 2012

Cash and cash equivalents
Current portion of financial assets transferred toconsolidated securitization entities
Financial assets transferred to consolidated
securitization entities
Current portion of non-recourse borrowings ofconsolidated securitization entities：
Loans, mainly from banks
Beneficial interests in trusts

Lease
receivables
4,760

Mortgageloans
receivable
2,837

Others
1,087

Total
8,684

67,026

10,401

8,644

86,071

51,570151,826

2,015

205,411

42,20732,67274,87913,92813,928

8,197
8,197

42,20754,79797,004

3,943
4,117
8,060

126,008
126,008

975
975

3,943
131,100
135,043

Non-recourse borrowings ofconsolidated securitization entities:
Loans, mainly from banks
Beneficial interests in trusts

F-13

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The assets and liabilities of the consolidated SPEs on the table above exclude intercompany balancesthat are eliminated in consolidation. Substantially, all of the assets of the consolidated SPEs can only
be used to settle obligations of those SPEs.
Transfers to unconsolidated entities
The following information is related to financial assets transferred to unconsolidated entities andaccounted for as sales. Those financial assets are transferred mainly to SPEs sponsored by financial
institutions.
Securitizations of lease receivables:
Hitachi Capital Corporation and certain other subsidiaries sold lease receivables to unconsolidated
SPEs and other entities. During the nine months ended December 31, 2012 and 2011, proceeds fromthe transfer of lease receivables were ¥67,293 million and ¥85,191 million, respectively, and net gains
recognized on those transfers were ¥3,109 million and ¥5,222 million, respectively. During the threemonths ended December 31, 2012 and 2011, proceeds from the transfer of lease receivables were
¥5,330 million and ¥28,024 million, respectively, and during the three months ended December 31,
2011, a net gain recognized on those transfers was ¥1,332 million. The subsidiaries retained servicing
responsibilities, but did not record a servicing asset or liability because the cost to service thereceivables approximated the servicing income.
The amounts of initial fair value of the subordinated interests for the nine months ended December 31,
2012 and 2011 were ¥8,868 million and ¥13,153 million, respectively. The amounts of initial fair valueof the subordinated interests for the three months ended December 31, 2012 and 2011 were ¥410
million and ¥4,706 million, respectively. The subordinated interests relating to securitizations of leasereceivables are initially classified as Level 3 assets within the fair value hierarchy. The initial fair valueof the subordinated interests is determined based on economic assumptions including weighted-average
life, expected credit risks, and discount rates.

F-14

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

Quantitative information about delinquencies, net credit losses, and components of lease receivables
subject to transfer and other assets managed together as of and for the nine months ended December 31,
2012 and as of and for the year ended March 31, 2012 is as follows:
Millions of yen
December 31, 2012
Principal
amount of
Total
receivables
principal 90 days or
amount of more past Net credit
receivablesdue
loss
Total assets managed or transferred:
Lease receivables
Assets transferred
Assets held in portfolio

936,211(233,002)
703,209404

287

Millions of yen
March 31, 2012
Principal
amount of
Total
receivables
principal 90 days or
amount of more past Net credit
receivablesdue
loss
Total assets managed or transferred:
Lease receivables
Assets transferred
Assets held in portfolio

955,565(219,914)
735,651

412

588

As of December 31, 2012 and March 31, 2012, the amounts of the maximum exposures to losses were¥74,253 million and ¥60,723 million, respectively. They mainly consist of the subordinated interests
and the obligations to purchase assets with a scope that is considerably limited relating to thesesecuritizations of lease receivables. As of December 31, 2012 and March 31, 2012, the amounts of thesubordinated interests measured at fair value relating to these securitizations of lease receivables were¥44,094 million and ¥36,329 million, respectively.
Securitizations of trade receivables:
The Company and certain subsidiaries sold trade receivables mainly to unconsolidated SPEs and otherentities. During the nine months ended December 31, 2012 and 2011, proceeds from the transfer of
trade receivables were ¥407,366 million and ¥427,138 million, respectively, and net losses recognizedon those transfers were ¥786 million and ¥53 million, respectively. During the three months ended
December 31, 2012 and 2011, proceeds from the transfer of trade receivables were ¥127,683 millionand ¥157,412 million, respectively, and net gains and losses recognized on those transfers were a net
loss of ¥94 million and a net gain of ¥39 million, respectively. The Company and certain subsidiaries
retained servicing responsibilities, but did not record a servicing asset or liability because the cost toservice the receivables approximated the servicing income.

F-15

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The amount of initial fair value of the subordinated interests for the nine months ended December 31,
2012 and for the three months ended December 31, 2012 were ¥12,931 million and ¥1,008 million,
respectively. The subordinated interests relating to securitizations of trade receivables are initiallyclassified as Level 3 assets within the fair value hierarchy. The initial fair value of the subordinatedinterests is determined based on economic assumptions including weighted-average life, expectedcredit risks, discount rates, and prepayment rates.
Quantitative information about delinquencies, net credit loss, and components of trade receivables
subject to transfer and other assets managed together as of and for the nine months ended December 31,
2012 and as of and for the year ended March 31, 2012 is as follows:
Millions of yen
December 31, 2012
Principal
amount of
Total
receivables
principal 90 days or
amount of more past Net credit
receivablesdue
loss
Total assets managed or transferred:
Trade receivables
Assets transferred
Assets held in portfolio

832,974(220,877)
612,097

3,025

1,151

Millions of yen
March 31, 2012
Principal
amount of
Total
receivables
principal 90 days or
amount of more past Net credit
receivablesdue
loss
Total assets managed or transferred:
Trade receivables
Assets transferred
Assets held in portfolio

844,698(233,881)
610,817

2,450

965

As of December 31, 2012 and March 31, 2012, the amounts of the maximum exposures to losses were¥39,385 million and ¥45,797 million, respectively. They mainly consist of the subordinated interestsand obligations to purchase assets with a scope that is considerably limited relating to thesesecuritizations of trade receivables. As of December 31, 2012 and March 31, 2012, the amounts of thesubordinated interests relating to these securitizations of trade receivables were ¥27,472 million and¥31,295 million, respectively.

F-16

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

(6)

Goodwill and Other Intangible Assets
Goodwill and other intangible assets included in other assets as of December 31, 2012 and March 31,
2012 are as follows:
Millions of yen
March 31, 2012

December 31, 2012

Goodwill
Amortized intangible assets:
Software
Software for internal use
Patents
Other
Indefinite-lived
intangible assets

Grosscarrying
amountAccumulated
amortization

Net carrying
amountGrosscarrying
amountAccumulated
amortization

Net carrying
amount269,494-

269,494

214,707-

214,707778,586
556,551
79,594
226,242
1,640,973

644,421424,669
74,334
108,105
1,251,529

134,165
131,882
5,260
118,137
389,444774,641
520,971
79,108
213,866
1,588,586

637,462
397,742
70,670101,407
1,207,281

137,179
123,229
8,438
112,459
381,305

13,727-

13,727

13,950-13,950(7)

Income Taxes
On December 2, 2011, amendments to corporation tax law and the special taxation measures law forGreat East Japan Earthquake disaster reconstruction were enacted in Japan, resulting in the lower
corporate tax rates. Those changes became effective on April 1, 2012. As a result, the aggregatedstatutory income tax rate for domestic companies will be approximately 37.9% for the period between
April 1, 2012 through March 31, 2015 and approximately 35.5% for the years beginning on or after
April 1, 2015. The effect of those changes on the Company’s deferred tax balances amounted to ¥5,709
million of additional expense recognized in the Consolidated Statements of Operations for the threemonths ended December 31, 2011.

(8)

Retirement and Severance Benefits
Net periodic benefit cost for the contributory funded benefit pension plans and the unfunded lump-sum
payment plans for the nine months ended December 31, 2012 and 2011 consists of the following
components:

Nine months ended
December 31, 2012
52,45233,304(26,574)(16,799)
72,466(104)(48)
114,697

Service cost
Interest cost
Expected return on plan assets for the period
Amortization of prior service benefit
Amortization of actuarial loss
Transfer to defined contribution pension plan
Settlements loss
Employees’ contributions

F-17

Millions of yen
Nine months ended
December 31, 2011
54,24438,684(25,882)(17,267)
66,329
(328)
395
(107)
116,068

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

Net periodic benefit cost for the contributory funded benefit pension plans and the unfunded lump-sum
payment plans for the three months ended December 31, 2012 and 2011 consists of the following
components:

Three months ended
December 31, 2012
17,223
10,971(8,769)(5,590)23,901(16)
37,720Service cost
Interest cost
Expected return on plan assets for the period
Amortization of prior service benefit
Amortization of actuarial loss
Transfer to defined contribution pension plan
Employees’ contributions(9)

Millions of yen
Three months ended
December 31, 201118,11012,812(8,678)(5,683)22,408186(34)
39,121

Common Stock
Issued shares of common stock as of December 31, 2012 and March 31, 2012 are as follows:
December 31,
2012
4,746,438,220

Issued shares of common stock

Issued shares
March 31,2012
4,637,785,317(10) Treasury Stock
Shares of treasury stock as of December 31, 2012 and March 31, 2012 are as follows:
December 31,
2012
2,802,907

Shares of treasury stock

SharesMarch 31,2012
2,743,239(11) Dividends

Decision
The Board of
Directors on
May 10, 2012

Class of
SharesCashdividends(Millionsof yen)Commonstock

23,175Retainedearnings

5.0

March
31, 2012

May
29, 2012

The Board of
Directors on
October 30,
2012

Commonstock

23,537Retainedearnings

5.0

September
30, 2012

November27, 2012

Appropriation
from

F-18

Cash
dividends
per share(Yen)

Recorddate

Effective
Date

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012(12) Equity
The changes in the equity for the nine months ended December 31, 2012 and 2011 are summarized asfollows:

Balance at beginning of period
Dividends to Hitachi, Ltd. stockholders
Dividends to noncontrolling interests
Equity transactions and otherComprehensive income
Net income
Other comprehensive income (loss), net ofincome taxes and reclassification adjustments:
Foreign currency translation adjustments
Pension liability adjustments
Net unrealized holding gain on
available-for-sale securities
Cash flow hedges
Comprehensive income
Balance at end of period

Balance at beginning of period
Dividends to Hitachi, Ltd. stockholders
Dividends to noncontrolling interests
Equity transactions and otherComprehensive income
Net income
Other comprehensive income (loss), net ofincome taxes and reclassification adjustments:
Foreign currency translation adjustments
Pension liability adjustments
Net unrealized holding gain on
available-for-sale securities
Cash flow hedges
Comprehensive income
Balance at end of period

Millions of yen
Nine months ended December 31, 2012
Total Hitachi, Ltd.
stockholders’Noncontrolling
equityinterests
Total equity
1,771,782
1,002,213
2,773,995(46,713)(46,713)(22,182)(22,182)
30,713(2,171)
28,54250,35844,02894,386

46,79546,03020,278
5,352

67,07351,382

8,486(13,485)
138,184
1,893,966(1,260)(280)
68,1181,045,9787,226(13,765)
206,3022,939,944

Millions of yen
Nine months ended December 31, 2011
Total Hitachi, Ltd.
stockholders’Noncontrolling
equityinterests
Total equity
1,439,865
1,001,524
2,441,389(27,105)(27,105)(19,255)(19,255)
4,557
3,111
(1,446)F-19

85,22938,910124,139(56,098)
38,382(27,260)
2,334(83,358)
40,716(12,029)92
55,576
1,466,890(2,341)
263
11,906
998,732(14,370)355
67,482
2,465,622

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

For the three months ended December 31, 2012, total comprehensive income was ¥164,118 million, andfor the three months ended December 31, 2011, total comprehensive income was ¥39,953 million.
Accumulated other comprehensive loss, net of income taxes, as of December 31, 2012 and March 31,
2012 consists of the following:

Foreign currency translation adjustments
Pension liability adjustments
Net unrealized holding gain on available-for-sale securities
Cash flow hedges
Accumulated other comprehensive loss

Millions of yen
December 31,
March 31,2012
2012
(172,926)(220,615)(247,645)(294,252)
29,021
20,491(16,005)(2,520)(407,555)(496,896)(13) Commitments and Contingencies
The Company and its operating subsidiaries are contingently liable for loan guarantees to its affiliates andothers in the amount of approximately ¥83,315 million as of December 31, 2012.
Hitachi Capital Corporation (HCC) and certain other financial subsidiaries provide guarantees to financial
institutions for extending loans to customers of the subsidiaries. As of December 31, 2012, theundiscounted maximum potential future payments under such guarantees amounted to ¥318,109 million.
For providing these guarantees, the subsidiaries obtain collateral appropriate for the amount of theguarantees, and therefore, the Company considers the risk to be low. The Company accrued ¥11,785
million as an obligation to stand ready to perform over the term of the guarantees in the event the customer
cannot make scheduled payments.
The Company and HCC provide loan commitments to affiliates and others.
The outstanding balance of loan commitments as of December 31, 2012 is as follows:
Millions of yen
40,714449
40,265

Total commitment available
Less amount utilized
Balance available

The amount of total commitment available in the table above includes lines of credits which require an
additional credit approval prior to funding, and it may not be fully utilized.
The Company and certain subsidiaries have line of credit arrangements with banks in order to secure afinancing source for business operations. The unused lines of credit as of December 31, 2012 amounted to¥500,959 million, primarily related to unused lines of credit belonging to the Company. The Company
maintains commitment line agreements with a number of banks and pays commitment fees as consideration.
These commitment agreements generally provide a one-year term, and are subject to renewal at the end of
the term. The unused availability under these agreements as of December 31, 2012 amounted to ¥200,000
million. The Company also maintains another commitment line agreement, whose three years and twomonths term ends in May 2013, with financing companies. The unused availability under this agreement asof December 31, 2012 amounted to ¥200,000 million.

F-20

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

It is a common practice in Japan for companies, in the ordinary course of business, to receive promissory
notes in the settlement of trade accounts receivable and to subsequently discount such notes to banks or totransfer them by endorsement to suppliers in the settlement of accounts payable. As of December 31, 2012
and March 31, 2012, the Company and subsidiaries were contingently liable for trade notes discounted andendorsed in the following amounts:
Millions of yen
December 31,
March 31,2012
2012
Notes discounted
884
3,937
Notes endorsed
2,301
2,800
3,185
6,737

A certain subsidiary is contingently liable for the transfer of export receivables with recourse. As of
December 31, 2012, the amount of transfer of export receivables with recourse was ¥9,599 million.
The Company and its subsidiaries provide warranties for certain of their products. The accrued productwarranty costs are based primarily on historical experience of actual warranty claims. The changes in
accrued product warranty costs for the nine months ended December 31, 2012 and 2011 are summarized asfollows:
Millions of yen
Nine months ended
Nine months ended
December 31, 2012
December 31, 2011
Balance at beginning of period
41,35655,329
Expense recognized upon issuance of
warranties
7,791
9,075
Usage
(8,982)(13,819)
Acquisitions and divestitures
81
Other, including effect of foreign currencytranslation
986(2,352)
Balance at end of period
41,232
48,233The changes in accrued product warranty costs for the three months ended December 31, 2012 and 2011 aresummarized as follows:

Balance at beginning of period
Expense recognized upon issuance of
warranties
Usage
Other, including effect of foreign currencytranslation
Balance at end of period

Three months ended
December 31, 2012
38,709Millions of yen
Three months ended
December 31, 2011
51,1403,533(2,980)2,520(4,360)1,970
41,232(1,067)
48,233

F-21

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

In December 2006, the Company and a subsidiary in Europe received requests for information from theEuropean Commission, and a former subsidiary in Japan received a grand jury subpoena in connection with
the investigation conducted by the Antitrust Division of the U.S. Department of Justice, all in respect ofalleged antitrust violations relating to liquid crystal displays. The former Japanese subsidiary paid the finein relation to the investigation by the Antitrust Division of the U.S. Department of Justice in June 2009.
In June 2007, the Company received requests for information from the European Commission in respect ofalleged antitrust violations relating to dynamic random access memories. In May 2010, the European
Commission ordered the Company to pay a fine for infringement of EC antitrust rules. The Company paidthat fine in August 2010.
In November 2007, a subsidiary of the Company in the U.S. received a grand jury subpoena in connection
with the investigation conducted by the Antitrust Division of the U.S. Department of Justice in respect ofalleged antitrust violations relating to cathode ray tubes. In addition, in November 2007, two subsidiaries in
Asia and in Europe received requests for information from the European Commission. Furthermore, inNovember 2007, a subsidiary in Canada received requests for information from the Canadian Competition
Bureau.
In June 2009, a subsidiary of the Company in Japan received a grand jury subpoena in connection with theinvestigation conducted by the Antitrust Division of the U.S. Department of Justice and received requests
for information from the European Commission, and a subsidiary of the Company in Korea wasinvestigated in Singapore by the Competition Commission of Singapore, all in respect of alleged antitrust
violations relating to optical disk drives. In September 2011, the Korean subsidiary received a notice of
discontinuation of the investigation from the Competition Commission of Singapore. In October 2011, theJapanese subsidiary agreed to pay a fine in relation to the investigation from the Antitrust Division of the
U.S. Department of Justice and in November 2011, it paid that fine. In July 2012, the Japanese subsidiaryreceived a statement of objections from the European Commission in respect of alleged antitrust violations.
In July 2011, a subsidiary and an affiliated company of the Company in Japan received a statement ofobjections from the European Commission in respect of alleged antitrust violations relating to high-voltage
power cables. These companies accrued the reasonably estimated amount for the loss.
In July 2011, a subsidiary in the U.S. was investigated by and received a grand jury subpoena from the
Antitrust Division of the U.S. Department of Justice, the Company and a subsidiary in Europe received
requests for information from the European Commission, and a subsidiary in Canada received requests for
information from the Canadian Competition Bureau, all in respect of alleged antitrust violations relating toautomotive equipment.
The Company and these companies (including a former subsidiary) have cooperated with the competentauthorities in connection with the above matters. Depending upon the outcome of these matters, fines orsurcharge payments, the amount of which is uncertain, may be imposed on them. In addition, subsequent tothese actions by the competent authorities, civil disputes, including class action lawsuits, involving theCompany and some of these companies (including a former subsidiary) have arisen in a number ofcountries, including in the U.S. and Canada. A reasonably estimated amount was accrued for the potential
losses in relation to certain of these civil disputes.
In August 2012, a subsidiary of the Company in Europe received a complaint filed by a customer in Europe
seeking compensation for consequential losses of EUR 1,058 million (¥121,431 million), additional costs
and interest allegedly incurred by the delay in the construction process of a power plant against, jointly and
F-22

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

severally, the Company, the subsidiary of the Company in Europe, a consortium including the Company
and the subsidiary of the Company in Europe, and two other companies. Although the Company, thesubsidiary of the Company in Europe and the consortium will vigorously defend themselves against thislawsuit, there can be no assurance that they will not be held liable for any amounts claimed.
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 theadverse effect, if any, of many of these proceedings. Accordingly, except as otherwise stated, no accrual for
potential loss has been made. 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 certain subsidiaries are subject to several legal proceedings andclaims which have arisen in the ordinary 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 consolidated financial position or results of operations of the Company andsubsidiaries.
(14) Impairment Losses for Long-Lived Assets
For the nine months ended December 31, 2012, the majority of the impairment losses were recorded on
property, plant and equipment located in Japan. The Information & Telecommunication Systems
segment recognized impairment losses of ¥4,780 million, primarily due to reduced cash flows generated
from certain assets associated with customers in the financial service businesses. The Electronic Systems& Equipment segment recognized impairment losses of ¥1,450 million, primarily due to reorganizationof production bases for video and wireless network businesses. The fair value estimates used todetermine these losses were based primarily on discounted future cash flows.
For the nine months ended December 31, 2011, the majority of the impairment losses were recorded on
property, plant and equipment located in Japan. The High Functional Materials & Components segment
recognized a loss of ¥11,945 million, primarily due to restructuring of its semiconductor package
material businesses as a result of a recent decrease in demand of the market and integrating
manufacturing facilities for electronics and IT devices business. The fair value estimates used todetermine these losses were based primarily on discounted future cash flows.
For the three months ended December 31, 2012, the majority of the impairment losses were recorded on
property, plant and equipment located in Japan. The Information & Telecommunication Systems
segment recognized impairment losses of ¥2,189 million, primarily due to reorganization of businessbases in order to optimally allocate management resources to better enhance the competitiveness. The
fair value estimates used to determine these losses were based primarily on discounted future cash flows.
For the three months ended December 31, 2011, the majority of the impairment losses were recorded on
property, plant and equipment located in Japan. The High Functional Materials & Components segment
recognized a loss of ¥5,924 million, primarily due to integrating manufacturing facilities for electronics
and IT devices business. The fair value estimates used to determine these losses were based primarily on
discounted future cash flows.

F-23

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012(15) Restructuring Charges
Certain losses incurred in the reorganization of the Company’s operations are considered restructuring
charges. Components and related amounts of the restructuring charges, before the related tax effects, forthe nine months ended December 31, 2012 and 2011 are as follows:

Nine months ended
December 31, 2012
10,152
4
10,156

Special termination benefits
Loss on fixed assets

Millions of yen
Nine months ended
December 31, 2011
13,66860
13,728Components and related amounts of the restructuring charges, before the related tax effects, for the threemonths ended December 31, 2012 and 2011 are as follows:

Special termination benefits
Loss on fixed assets

Three months ended
December 31, 2012
5,632
5,632

Millions of yen
Three months ended
December 31, 2011
12,54810
12,558Certain subsidiaries provided special termination benefits to those employees voluntarily leaving thecompanies. The accrued special termination benefits were recognized at the time voluntary termination
was offered and benefits were accepted by the employees. An analysis of the accrued special termination
benefits for the nine months ended December 31, 2012 and 2011 is as follows:
Nine months ended
December 31, 2012
7,487
10,152(11,779)28
5,888

Balance at beginning of the period
New charges
Cash payments
Foreign currency exchange rate changes
Balance at end of the period

Millions of yen
Nine months ended
December 31, 2011
3,358
13,668(5,376)(21)
11,629An analysis of the accrued special termination benefits for the three months ended December 31, 2012
and 2011 is as follows:

Balance at beginning of the period
New charges
Cash payments
Foreign currency exchange rate changes
Balance at end of the period

Three months ended
December 31, 2012
3,265
5,632
(3,076)
67
5,888

F-24

Millions of yen
Three months ended
December 31, 2011
881
12,548(1,792)(8)
11,629HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The restructuring charges for the nine months ended December 31, 2012 mainly consist of special
termination benefits for the early-terminated employees of subsidiaries for the purpose of improving
profitability in the Information & Telecommunication Systems segment and the High Functional
Materials & Components segment by rationalizing its workforce.
The following represents the significant restructuring activities for the nine months ended December 31,
2011 by reportable segment:
1. The Others restructured in order to rationalize the workforce of its liquid crystal display business.
The accrued special termination benefits expensed during the nine months ended December 31,
2011 amounted to ¥6,521 million. The liabilities for special termination benefits amounting to¥6,484 million as of December 31, 2011 were paid by June 30, 2012. Total restructuring charges
during the nine months ended December 31, 2011 amounted to ¥6,521 million.
2. The High Functional Materials & Components segment restructured in order to reorganize its wires,
cables and other relevant products business, which has encountered severe deterioration in thebusiness environment. The accrued special termination benefits expensed during the nine months
ended December 31, 2011 amounted to ¥5,915 million. The liabilities for special termination
benefits amounting to ¥4,405 million as of December 31, 2011 were paid by June 30, 2012. Total
restructuring charges during the nine months ended December 31, 2011 amounted to ¥5,938
million.
The restructuring charges for the three months ended December 31, 2012 mainly consist of special
termination benefits for the early-terminated employees of subsidiaries for the purpose of improving
profitability in the High Functional Materials & Components segment by rationalizing its workforce.
The following represents the significant restructuring activities for the three months ended December
31, 2011 by reportable segment:
1. The Others restructured in order to rationalize the workforce of its liquid crystal display business.
The accrued special termination benefits expensed during the three months ended December 31,
2011 amounted to ¥6,521 million. The liabilities for special termination benefits amounting to¥6,484 million as of December 31, 2011 were paid by June 30, 2012. Total restructuring charges
during the three months ended December 31, 2011 amounted to ¥6,521 million.
2. The High Functional Materials & Components segment restructured in order to reorganize its wires,
cables and other relevant products business, which has encountered severe deterioration in thebusiness environment. The accrued special termination benefits expensed during the three months
ended December 31, 2011 amounted to ¥5,460 million. The liabilities for special termination
benefits amounting to ¥4,405 million as of December 31, 2011 were paid by June 30, 2012. Total
restructuring charges during the three months ended December 31, 2011 amounted to ¥5,460
million.

F-25

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012(16) Other Income and Other Deductions
The following items are included in other income or other deductions for the nine months ended
December 31, 2012 and 2011.

Net gain (loss) on securities
Net gain (loss) on sale and disposal ofrental assets and other property
Exchange gain (loss)

Nine months ended
December 31, 2012
5,453

Millions of yen
Nine months ended
December 31, 2011
(13,032)

(763)
2,997

23,372(11,740)

The following items are included in other income or other deductions for the three months ended
December 31, 2012 and 2011.

Net loss on securities
Net gain (loss) on sale and disposal ofrental assets and other property
Exchange gain

Three months ended
December 31, 2012
(2,008)Millions of yen
Three months ended
December 31, 2011
(8,920)(730)
15,113

16,876
3,200

The major component of net gain on securities for the nine months ended December 31, 2012 wasrelated to a sale of shares of TCM Corporation, a former subsidiary.
The net gain on sale and disposal of rental assets and other property for the nine months and threemonths ended December 31, 2011 includes the impact of gains on insurance claims related to property,
plant and equipment damaged due to the Great East Japan Earthquake.

F-26

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012(17) Net Income Per Share Information
The reconciliations of the numbers and the amounts used in the basic and diluted net income attributable
to Hitachi, Ltd. stockholders per share computations for the nine months ended December 31, 2012 and2011 are as follows :Number of shares
Nine months ended
Nine months ended
December 31, 2012
December 31, 2011
Weighted average number of shares on which basic net
income per share is calculated
4,663,338,021
4,517,480,869
Effect of dilutive securities:
Unsecured convertible bonds (due 2014)
167,464,491
313,430,938
Number of shares on which diluted net income per shareis calculated
4,830,802,512
4,830,911,807

Net income attributable to Hitachi, Ltd. stockholders
Effect of dilutive securities:
Unsecured convertible bonds (due 2014)
Other
Net income attributable to Hitachi, Ltd. stockholders
on which diluted net income per share is calculated

Nine months ended
December 31, 2012
50,358Millions of yen
Nine months ended
December 31, 201185,229

23
(24)

54
(47)

50,357

85,236Yen
Net income attributable to Hitachi, Ltd. stockholders
per share:
Basic
Diluted

F-27

10.80
10.42

18.87
17.64

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The reconciliations of the numbers and the amounts used in the basic and diluted net income attributable
to Hitachi, Ltd. stockholders per share computations for the three months ended December 31, 2012 and2011 are as follows:
Number of shares
Three months ended
Three months ended
December 31, 2012
December 31, 2011
Weighted average number of shares on which basic net
income per share is calculated
4,712,072,654
4,517,446,536
Effect of dilutive securities:
Unsecured convertible bonds (due 2014)
118,694,143
313,425,867
Number of shares on which diluted net income per shareis calculated
4,830,766,797
4,830,872,403

Net income attributable to Hitachi, Ltd. stockholders
Effect of dilutive securities:
Unsecured convertible bonds (due 2014)
Other
Net income attributable to Hitachi, Ltd. stockholders
on which diluted net income per share is calculated

Three months ended
December 31, 2012
20,233

Millions of yen
Three months ended
December 31, 201134,280

6
(0)

18
(18)

20,23934,280Yen
Net income attributable to Hitachi, Ltd. stockholders
per share:
Basic
Diluted

F-28

4.29
4.19

7.59
7.10

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012(18) Concentrations of Credit Risk
The Company and its subsidiaries generally do not have significant concentrations of credit risk to any
counterparties nor any regions because they are diversified and spread globally.
(19) Derivative Instruments and Hedging Activities
Overall risk profile
The major manufacturing bases of the Company and its subsidiaries are located in Japan and Asia. The
selling bases are located globally, and the Company and its subsidiaries generated approximately 40%of their sales from overseas for the nine months ended December 31, 2012. These overseas sales aremainly denominated in the U.S. dollar or Euro. As a result, the Company and its subsidiaries are
exposed to market risks from changes in foreign currency exchange rates.
The Company’s financing subsidiaries in the U.K., the U.S. and Singapore issue variable rate
medium-term notes mainly through the Euro markets to finance their overseas long-term operating
capital. As a result, the Company and its subsidiaries are exposed to market risks from changes inforeign currency exchange rates and interest rates.
The Company and its subsidiaries are also exposed to credit-related losses in the event of
non-performance by counterparties to derivative financial instruments, but it is not expected that any
counterparties will fail to meet their obligations because most of the counterparties are internationallyrecognized financial institutions that are rated A or higher and contracts are diversified into a numberof major financial institutions.
The Company and its subsidiaries have an insignificant amount of derivative instruments containing
credit-risk-related contingent features, such as provisions that require the Company’s debt to maintainan investment grade credit rating from each of the major credit rating agencies.
Risk management policy
The Company and its subsidiaries assess foreign currency exchange rate risk and interest rate risk bycontinually monitoring changes in these exposures and by evaluating hedging opportunities. It is theCompany’s principal policy that the Company and its subsidiaries do not enter into derivative financial
instruments for speculation purposes.
Foreign currency exchange rate risk management
The Company and its subsidiaries have assets and liabilities which are exposed to foreign currency
exchange rate risk and, as a result, they enter into forward exchange contracts and cross currency swap
agreements for the purpose of hedging these risk exposures.
In order to fix the future net cash flows principally from trade receivables and payables recognized,
which are denominated in foreign currencies, the Company and its subsidiaries on a monthly basis
measure the volume and due date of future net cash flows by currency. In accordance with theCompany’s policy, a certain portion of measured net cash flows is covered using comprehensive
forward exchange contracts, which principally mature within one year. If necessary, the Company andits subsidiaries establish the risk control policy and the risk management approach specific to eachtransaction by reviewing the business characteristics, the structure of income and expenditure, andconditions of the contract. The Company and its subsidiaries hedge the risk exposure arising from
specific transactions based on the risk control policy and the risk management approach.

F-29

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The Company and its subsidiaries enter into cross currency swap agreements with the same maturities as
underlying debt to fix cash flows from long-term debt denominated in foreign currencies. The hedging
relationship between the derivative financial instrument and its hedged item is highly effective inachieving offsetting changes in foreign currency exchange rates.
Interest rate risk management
The Company’s and certain subsidiaries’ exposure to interest rate risk is related principally to
long-term debt obligations. Management believes it is prudent to minimize the variability caused byinterest rate risk.
To meet this objective, the Company and certain subsidiaries principally enter into interest rate swaps
to manage fluctuations in cash flows. The interest rate swaps entered into are receive-variable,
pay-fixed interest rate swaps. Under the interest rate swaps, the Company and certain subsidiaries
receive variable interest rate payments on long-term debt associated with medium-term notes and makefixed interest rate payments, thereby creating fixed interest rate long-term debt.
Certain financing subsidiaries mainly finance a portion of their operations using long-term debt with afixed interest rate and lend funds at variable interest rates. Therefore, such companies are exposed tointerest rate risk. Management believes it is prudent to minimize the variability caused by interest raterisk. To meet this objective, certain financing subsidiaries principally enter into interest rate swaps
converting the fixed rate to a variable rate to manage fluctuations in fair value resulting from interest
rate risk. Under the interest rate swaps, certain financing subsidiaries receive fixed interest rate
payments associated with long-term debt, including medium-term notes, and make variable interest rate
payments, thereby creating variable-rate long-term debt.
The hedging relationship between the interest rate swaps and its hedged item is highly effective inachieving offsetting changes in cash flows and fair value resulting from interest rate risk.
Fair value hedge
Changes in the fair value of both recognized assets and liabilities, and derivative financial instruments
designated as fair value hedges of these assets and liabilities are recognized in other income(deductions). Derivative financial instruments designated as fair value hedges include forward
exchange contracts associated with operating transactions, cross currency swap agreements and interest
rate swaps associated with financing transactions.
Cash flow hedge
Foreign currency exposure:
Changes in the fair value of forward exchange contracts designated and qualifying as cash flow hedgesof forecasted transactions are reported in accumulated other comprehensive income (AOCI). Theseamounts are reclassified into earnings in the same period as the hedged items affect earnings.
Interest rate exposure:
Changes in fair values of interest rate swaps designated as hedging instruments for the variability of cash
flows associated with long-term debt obligations are reported in AOCI. These amounts subsequently arereclassified into interest charges as a yield adjustment in the same period in which the hedged debt
obligations affect earnings.

F-30

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012(20) Fair Value
ASC 820 establishes a fair value hierarchy that prioritizes the use of observable inputs in markets overthe use of unobservable inputs when measuring fair value as follows:
Level 1
Quoted prices for identical assets or liabilities in active markets.
Level 2
Quoted prices for similar assets or liabilities in active markets; quoted prices associated withtransactions that are not distressed for identical or similar assets or liabilities in markets that are notactive; or valuations whose significant inputs are derived from or corroborated by observable market
data.
Level 3
Valuations using inputs that are not observable.
Investments in debt and equity securities
Investment securities of which quoted market prices are available to determine their fair value areincluded in Level 1. Level 1 securities include available-for-sale securities such as listed stocks on
exchange markets, debt securities such as Japan treasury bonds and U.S. treasury bonds and exchange
traded funds.
In the absence of an active market for investment securities, quoted prices for similar investment
securities, quoted prices associated with transactions that are not distressed 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. These investments are included in
Level 2. Level 2 securities include short-term investments and available-for-sale securities such as
listed stocks traded over-the-counter, investment funds and debt securities traded over-the-counter.
In infrequent circumstances, the significant inputs of fair value for investment securities areunobservable and such investment are included in Level 3. The Company uses price information
provided by financial institutions to evaluate these investments while corroborating the information
mainly with prices estimated using an income approach based on its own valuation models or a market
approach such as comparison with prices of similar securities. Level 3 securities include
available-for-sale securities such as subordinated debentures and structured bonds with little market
activity.
Derivatives
Closing prices are used for derivatives included in Level 1, which are traded on active markets. The
majority of derivatives are traded on over-the-counter markets, which the Company does not deem torepresent active markets. Derivative assets and liabilities for which fair value is based on quoted prices
associated with transactions that are not distressed, in markets that are not active, or based on models
using interest rate curves and forward and spot prices for currencies and commodities are included in
Level 2. Derivatives included in Level 2 primarily consist of interest rate swaps, cross-currency swaps
and foreign currency and commodity forward and option contracts. In infrequent circumstances, thesignificant inputs of fair value are unobservable and the Company mainly uses an income or market
approach to corroborate relevant information provided by financial institutions. These derivatives areincluded in Level 3.

F-31

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

Subordinated interests resulting from securitization
When fair value is determined using observable inputs, including prices of recent transactions inmarkets that are not distressed, subordinated interests are included in Level 2. When significant inputs
are not observable, fair value is determined based on economic assumptions used in measuring the fairvalue of the subordinated interests, including weighted-average life, expected credit risks, and discountrates, and the subordinated interests are included in Level 3.
The Company uses its own valuation models to evaluate these investments categorized within Level 3
and periodically reviews the appropriateness of consistent application of the models as well as updatingof the inputs in consideration of recent changes in economic conditions. The Company also analyses
that the sensitivity in the valuation of these investments does not have material adverse effects on the
consolidated financial statements.

F-32

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The following tables present the assets and liabilities that are measured at fair value on a recurring
basis and the fair value hierarchy classification as of December 31, 2012 and March 31, 2012. The
carrying values on the consolidated balance sheets are recorded by the fair value of these assets andliabilities.

Assets:Investments in securities
Equity securities
Government debt securities
Corporate debt securities
Other
Derivatives
Subordinated interests resulting
from securitization
Liabilities:
Derivatives

Assets:Investments in securities
Equity securities
Government debt securities
Corporate debt securities
Other
Derivatives
Subordinated interests resulting
from securitization
Liabilities:
Derivatives

Total

Millions of yen
December 31, 2012
Fair value hierarchy classification
Level 1
Level 2
Level 3

227,011
7,158
22,1158,858
8,684

226,316
6,830
8,415
-

695
328
5,470
443
8,684

16,645-69,961
343,787

241,561

15,62069,96186,606(53,115)-(53,115)-

Total

Millions of yen
March 31, 2012
Fair value hierarchy classification
Level 1
Level 2
Level 3

220,491
4,781
31,686
7,551
10,891

219,748
4,776
7,192
-

743
5
7,422
359
10,891

24,264-

66,313
341,713

231,716

19,42066,31390,577(21,978)-(21,978)-

F-33

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The following tables present the changes in Level 3 instruments measured on a recurring basis for thenine months ended December 31, 2012 and 2011.
Millions of yen
Nine months ended December 31, 2012
Subordinatedinterests
Corporate
resultingdebt
fromsecurities
securitization
Total
24,264
66,31390,577
19,506
19,506(661)(661)(7,799)(16,911)(24,710)

Balance at beginning of period
Purchases
Sales
Settlements
Total gains or losses (realized/unrealized)
Included in earnings (a)230
230Included in other comprehensive income
841
823
1,664
Balance at end of period
16,64569,96186,606
The amount of total gains or losses for the period
included in earnings attributable to the change inunrealized gains or losses relating to assets still held at
December 31, 2012(a) Level 3 gains and losses (realized and unrealized) included in earnings for the nine months ended
December 31, 2012 are reported in revenue.

Millions of yen
Nine months ended December 31, 2011
Subordinatedinterests
Corporate
resultingdebt
fromsecurities
securitization
Total
32,926
34,066
66,992
4,418
27,09431,512(1,492)(1,492)(12,559)(9,287)(21,846)

Balance at beginning of period
Purchases
Sales
Settlements
Total gains or losses (realized/unrealized)
Included in earnings (a)(1,122)155(967)
Included in other comprehensive income (loss)
85(1,741)(1,656)
Balance at end of period
22,25650,28772,543
The amount of total gains or losses for the period
included in earnings attributable to the change inunrealized gains or losses relating to assets still held at
December 31, 2011
(1,085)(1,085)(a) Level 3 gains and losses (realized and unrealized) included in earnings for the nine months ended
December 31, 2011 are reported in other income (deductions) for corporate debt securities and arereported in revenue for subordinated interests resulting from securitization.

F-34

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The following tables present the changes in Level 3 instruments measured on a recurring basis for thethree months ended December 31, 2012 and 2011.
Millions of yen
Three months ended December 31, 2012
Subordinatedinterests
Corporate
resultingdebt
fromsecurities
securitization
Total
18,052
71,91089,962
500
500
(661)
(661)
(1,300)(5,505)(6,805)

Balance at beginning of period
Purchases
Sales
Settlements
Total gains or losses (realized/unrealized)
Included in earnings (a)6060Included in other comprehensive income
554
2,996
3,550
Balance at end of period
16,64569,96186,606
The amount of total gains or losses for the period
included in earnings attributable to the change inunrealized gains or losses relating to assets still held at
December 31, 2012(a) Level 3 gains and losses (realized and unrealized) included in earnings for the three months ended
December 31, 2012 are reported in revenue.

Millions of yen
Three months ended December 31, 2011
Subordinatedinterests
Corporate
resultingdebt
fromsecurities
securitization
Total
25,01745,35770,374
1,000
8,772
9,772
(3,659)(3,687)(7,346)

Balance at beginning of period
Purchases
Settlements
Total gains or losses (realized/unrealized)
Included in earnings (a)
(29)
58
29
Included in other comprehensive loss
(73)
(213)
(286)
Balance at end of period
22,25650,28772,543
The amount of total gains or losses for the period
included in earnings attributable to the change inunrealized gains or losses relating to assets still held at
December 31, 2011(a) Level 3 gains and losses (realized and unrealized) included in earnings for the three months ended
December 31, 2011 are reported in other income (deductions) for corporate debt securities and arereported in revenue for subordinated interests resulting from securitization.
Assets that are measured at fair value during the period on a non-recurring basis because they are
deemed to be impaired are not included in the above tables.

F-35

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The Company writes down the carrying amount of equity-method and cost-method investments on the
consolidated balance sheets when the Company deems the decline of fair value to beother-than-temporary. The fair value of the equity-method investments which are listed on an active
market is included in Level 1. The fair value of equity-method investments determined using an
income approach, based on discounted cash flows using unobservable inputs is included in Level 3.
Also, a weighted-average fair value determined using both a market approach and an income approach,which incorporate both observable inputs, such as quoted market prices of comparable companies, anddiscounted cash flow using unobservable inputs, is included in Level 3. The Company calculates
discounted cash flows of these equity-method investments based on business forecasts, market trends,
and assumptions of projected business plans. The Company uses both a market approach and an
income approach to determine the fair value of the cost-method investments. The fair value based on
observable inputs such as quoted market prices of similar investments is included in Level 2. The fairvalue primarily based on discounted cash flows using unobservable inputs based on business forecasts,
market trends, and assumptions of projected business plans is included in Level 3.
The Company also writes down the carrying amount of long-lived assets on the consolidated balance
sheets mainly when the Company deems the carrying amount of certain long-lived assets is notrecoverable and exceeds its fair value. The Company mainly uses an income approach or a market
approach to calculate the fair value of long-lived assets. These measurements are included in Level 3
since they are based primarily on discounted cash flows using unobservable inputs based on business
forecasts, market trends, and assumptions of projected business plans.

F-36

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The following tables present the assets measured at fair value on a non-recurring basis and the gains orlosses recognized for the nine months ended December 31, 2012 and 2011.
Millions of yen
Nine months ended December 31, 2012
Fair value hierarchy classification
Total gains
Level 1
Level 2
Level 3
(losses)Long-lived assets (a)Information & Telecommunication
Systems segment
10
Electronic Systems & Equipment
segment
195
Other
1,614
Total
1,819
(a) The carrying value as of December 31, 2012 is not equal to the fair value at the time of
impairment because of depreciation expense subsequent to impairment.

Equity-method investments (a)Cost-method investments
Long-lived assets (b)High Functional Materials &Components segment
Other
Total

(4,780)(1,450)(2,330)(8,560)Millions of yen
Nine months ended December 31, 2011
Fair value hierarchy classification
Total gains
Level 1
Level 2
Level 3
(losses)
5,752
19,560(7,324)
2,466
(892)
5,752

-

791
0
22,817(a) The carrying value as of December 31, 2011 is not equal to the fair value at the time of
impairment because of equity method adjustments subsequent to impairment.
(b) The carrying value as of December 31, 2011 is not equal to the fair value at the time of
impairment because of depreciation expense subsequent to impairment.

F-37(11,945)(277)(20,438)

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The following tables present the assets measured at fair value on a non-recurring basis and the gains orlosses recognized for the three months ended December 31, 2012 and 2011.
Millions of yen
Three months ended December 31, 2012
Fair value hierarchy classification
Total gains
Level 1
Level 2
Level 3
(losses)Long-lived assets
Information & Telecommunication
Systems segment
Other
Total

Equity-method investments
Cost-method investments
Long-lived assets
High Functional Materials &Components segment
Other
Total

-

-

3
0
3

(2,189)(141)(2,330)Millions of yen
Three months ended December 31, 2011
Fair value hierarchy classification
Total gains
Level 1
Level 2
Level 3
(losses)
5,752
19,560(7,324)
114
(331)
5,752

F-38

-

434
0
20,108(5,924)(123)(13,702)

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012(21) Financing Receivables and Allowance for Doubtful Receivables
The Company classifies financing receivables aggregated and categorized as finance leases, installment
loans, mortgage loans, and other financing receivables, based on the nature of risks and characteristics
as described below.
Financing receivables from equipment leases, installment arrangements, mortgage loans, and otherreceivables with a contractual maturity of one year or more are subject to disclosure as reported in thisnote. Trade receivables from sale of products or services that have contractual maturities of one year orless are excluded from this note. Finance lease receivables are recorded based on the total minimum
payments to be received and unguaranteed residual values less executory costs and unearned income.
Installment loans, mortgage loans and other financing receivables are reported on the amortized costbasis.
Finance leases are receivables from lease arrangements, including products manufactured by theCompany and certain of its subsidiaries, such as information technology equipment, manufacturingmachinery and equipment and construction machinery, typically secured by underlying assets. The
primary locations of finance leases are Japan, United States, United Kingdom and China. The lease term
ranges mainly from three to six years. The non-specific allowance for doubtful receivables iscollectively determined on the basis of past collection experience, consideration of current economic
conditions and changes in our customer collection trends as well as other factors that may affect thecustomers’ ability to pay.
Installment loans represent receivables from arrangements with customers and dealers to provide
financing primarily for products manufactured by the Company and certain of its subsidiaries, such as
manufacturing machinery. Installment loans are typically secured by underlying assets. The primarylocations of installment loans are Japan, United States, United Kingdom and China. The loan term isgenerally less than three years. The non-specific allowance is collectively determined on the basis ofpast collection experience, consideration of current economic conditions and changes in our customer
collection trends as well as other factors that may affect the customers’ ability to pay.
Mortgage loans are financing receivables from residential loan arrangements for individuals. Mortgage
loans are usually arranged with collateral. The location of mortgage loans is Japan; more than fifty
percent of mortgage loans are arranged for employees of the Company and its domestic subsidiaries.
The term of mortgage loans is usually less than 30 years. The non-specific allowance is collectively
determined on the basis of past collection experience, consideration of current economic conditions andchanges in our customer collection trends as well as other factors that may affect the customers’ ability
to pay.
Other financing receivables are the financing service receivables provided by the subsidiaries in thefinancial services segment such as factoring, loan servicing, and other forms of commercial financing.
The contractual maturities associated with those services generally range over one to three years. The
non-specific allowance is collectively determined on the basis of past collection experience,
consideration of current economic conditions and changes in our customer collection trends as well asother factors that may affect the customers’ ability to pay.
In addition, common to all financing receivables, the Company and its subsidiaries individually evaluate
collectability of financing receivables either by discounted cash flow analyses when they determine
principal and interest of a financing receivable cannot be collected or by estimating the fair value of
related collateral when applicable and further estimating the allowance for doubtful receivables. The
F-39

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

Company and its subsidiaries have proprietary credit quality indicators appropriate to the uniquecharacteristics of their operations and the nature of their financing receivable portfolios. Based on such
indicators as the duration of overdue payments, the unpaid amounts, the existence of extended payment
terms, evaluation by third-party credit agencies, and the degree of debtors’ excessive debt, the Company
and its subsidiaries classify and monitor their financial receivables into two categories: the individually
evaluated receivables, and the collectively evaluated receivables.
Interest income for long-term financing receivables is recognized on the accrual basis.
As of December 31, 2012 and March 31, 2012, financing receivables include past due receivables in theamount of ¥24,102 million and ¥14,426 million, respectively. Of these amounts, financing receivables
past due 90 days or more and still accruing interest amounted to ¥5,483 million and ¥2,918 million,
respectively.
The following tables present the allowance for doubtful receivables and recorded investment infinancing receivables as of December 31, 2012 and 2011, and changes in the allowance for the ninemonths ended December 31, 2012 and 2011.

FinanceleasesAllowance for doubtfulreceivables
Balance, March 31, 2012
Provision
Recovery and otherWrite off
Balance, December 31,
2012
Applicable to amounts;
Individually evaluatedfor impairment
Applicable to amounts;
Collectively evaluatedfor impairment
Financing receivables
Balance, December 31,
2012
Applicable to amounts;
Individually evaluatedfor impairment
Applicable to amounts;
Collectively evaluatedfor impairment

Installment
loans

Mortgageloans

Millions of yen
December 31, 2012
Other
financingreceivables
Total

7,680
4,749
(2,790)
(298)

1,912
1,282
(344)
(879)

210
55
(101)
(1)

6,509
2,526
(670)
(1,709)16,311
8,612(3,905)(2,887)

9,341

1,971

163

6,656

18,131

4,970

603

52

4,130

9,755

4,371

1,368

111

2,526

8,376

712,550

176,565

180,675

268,540

1,338,330

16,475

753

135

8,217

25,580696,075

175,812

180,540

260,323

1,312,750

F-40

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

FinanceleasesAllowance for doubtfulreceivables
Balance, March 31, 2011
Provision
Recovery and otherWrite off
Balance, December 31,
2011
Applicable to amounts;
Individually evaluatedfor impairment
Applicable to amounts;
Collectively evaluatedfor impairment
Financing receivables
Balance, December 31,
2011
Applicable to amounts;
Individually evaluatedfor impairment
Applicable to amounts;
Collectively evaluatedfor impairment

Installment
loans

Mortgageloans

Millions of yen
December 31, 2011
Other
financingreceivables
Total

6,136
3,198
(2,726)
(451)

2,420
1,065
(728)
(469)

231
153
(142)
-

7,842
2,206
(1,580)(1,618)

16,6296,622(5,176)(2,538)

6,157

2,288

242

6,850

15,537

2,531

1,026

103

4,217

7,877

3,626

1,262

139

2,633

7,660

735,838

131,750

200,722

211,041

1,279,351

8,397

2,262

1,156

8,761

20,576

727,441

129,488

199,566

202,280

1,258,775

F-41

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The following tables present the changes in the allowance for the three months ended December 31,
2012 and 2011.

FinanceleasesAllowance for doubtfulreceivables
Balance, September 30,
2012
Provision
Recovery and otherWrite off
Balance, December 31,
2012

Mortgage
loans

8,497
1,974
(1,081)
(49)

1,882
488
(90)
(309)

188
12
(37)
-

5,947
1,237
(194)
(334)

16,514
3,711(1,402)
(692)

9,341

1,971

163

6,656

18,131

FinanceleasesAllowance for doubtfulreceivables
Balance, September 30,
2011
Provision
Recovery and otherWrite off
Balance, December 31,
2011

Installment
loans

Millions of yen
December 31, 2012
Other
financingreceivables
Total

Installment
loans

Mortgageloans

Millions of yen
December 31, 2011
Other
financingreceivables
Total

6,085
857
(679)
(106)

2,209
305
(112)
(114)

214
36
(8)
-

7,242
550
(517)
(425)

15,7501,748(1,316)
(645)

6,157

2,288

242

6,850

15,537

In addition, as of December 31, 2012 and March 31, 2012, the amounts of impaired loans relating toreceivables which arose from sales of products or services are ¥42,540 million and ¥42,729 million,
respectively.

F-42

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012(22) Acquisitions and Divestitures
On November 23, 2012, the Company purchased all of the outstanding 54,000,000,200 shares of
Horizon Nuclear Power Limited (Horizon) from RWE npower plc and E.ON UK plc for ¥88,886 million
in the Power Systems segment. Accordingly, the Company obtained control of Horizon and it became awholly owned subsidiary effective November 23, 2012 (the acquisition date).
Horizon operates a nuclear power development business in the United Kingdom. The Company madethe acquisition to lead a program of building new nuclear power plants in the United Kingdom.
The following table summarizes the consideration paid for Horizon, the provisional amounts of theassets acquired and liabilities assumed and recognized as of the acquisition date.

Current assets
Non-current assets (excluding intangible assets)
Intangible assets
Goodwill (not deductible for tax purposes)
Other intangible assets
Current liabilities
Non-current liabilities

Cash paid for acquisition

Millions of yen
2,873
51,19531,945
3,931
89,944(927)(131)(1,058)(88,886)

The Company is currently evaluating the fair values to be assigned to assets and liabilities of Horizon at
the acquisition date, and therefore the above amounts are subject to change.
The results of operations of Horizon for the period from the acquisition date to December 31, 2012 were
not material.
On a pro forma basis, revenue, net income attributable to Hitachi, Ltd. stockholders and the per share
information of the Company with assumed acquisition date for Horizon of April 1, 2011 would not
differ materially from the amounts reported in the accompanying consolidated financial statements as ofand for the nine months and three months ended December 31, 2012 and 2011.
On September 2, 2011 Hitachi Data Systems Corporation (HDS), a subsidiary of the Company in the
Information & Telecommunication Systems segment, purchased additional shares of BlueArc
Corporation (BlueArc) for ¥42,923 million, resulting in a 97.8% increase of HDS ownership from 2.2%
to 100%. Accordingly, HDS obtained control of BlueArc and it became a wholly owned subsidiaryeffective September 2, 2011 (the acquisition date).
BlueArc operates a network storage business. HDS made the acquisition to increase its competitivenessin the storage solution business through creating synergy in a field of file storage.

F-43

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The following table summarizes the consideration paid for BlueArc, the assets acquired and liabilities
assumed and recognized as of the acquisition date.

Current assets
Non-current assets (excluding intangible assets)
Intangible assets
Goodwill (not deductible for tax purposes)
Other intangible assets
Current liabilities
Non-current liabilities
Previously acquired equity interest measured atfair value
Cash paid for acquisition

Millions of yen
1,499
4,749
33,002
11,01450,264(1,400)(5,059)(6,459)(882)(42,923)(43,805)

The following table shows the acquired intangible assets subject to amortization.

Millions of yen
The acquired intangible assets subject toamortization
Existing technology
Customer relationships
In-process research and development
Trade name

7,166
2,874
771
203
11,014Weighted averageamortization
period (year)
552
2

The Company recognized a gain of ¥747 million as a result of remeasuring its equity interest in BlueArc
held before the business combination at the acquisition date fair value. The gain is included in otherdeductions in the Company’s consolidated statement of operations for the nine months ended December
31, 2011.
The fair value of the equity interest held before the business combination in BlueArc, a private entity,
was estimated by applying the income approach. This fair value measurement is based on significant
inputs that are not observable in the market and thus this fair value is included in Level 3. Key inputs
include business forecasts, market trends, assumptions of projected business plans and adjustments
because of the lack of control that market participants would consider when estimating the fair value of
BlueArc.
The results of operations of BlueArc for the period from the acquisition date to December 31, 2011 were
not material.
On a pro forma basis, revenue, net income attributable to Hitachi, Ltd. stockholders and the per share
information of the Company with assumed acquisition date for BlueArc of April 1, 2010 would not
F-44

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

differ materially from the amounts reported in the accompanying consolidated financial statements as ofand for the nine months and three months ended December 31, 2011.
On March 9, 2011, Hitachi Transport System, Ltd. (Hitachi Transport System), a subsidiary of theCompany included in the Others category of segment information, announced its decision to purchaseshares of Vantec Corporation (Vantec), through a tender offer to make Vantec its subsidiary. The tender
offer price was ¥233,500 per share, which was determined by taking into consideration the market priceof Vantec’s common stock, Vantec’s financial condition, future earnings prospects and a valuation ofVantec stock conducted by a third party appraiser. The price included a premium of approximately 93%
over the average share price of Vantec’s common stock traded on the First Section of the Tokyo Stock
Exchange for the three month period ended March 8, 2011. As a result, Hitachi Transport Systempurchased 209,550 shares in the tender offer, for ¥48,930 million in the period from March 10, 2011
through April 19, 2011, resulting in an acquisition of 90.12% of the voting rights. Accordingly, Hitachi
Transport System obtained control of Vantec and it became a consolidated subsidiary effective April 26,
2011, the settlement date of the tender offer (the acquisition date).
Vantec operates warehousing and transportation related business. Hitachi Transport System made theacquisition to realize synergy in the system logistics and global business and improve the enterprisevalue of Hitachi Transport System and Vantec.
The following table summarizes the consideration paid for Vantec, the assets acquired and liabilities
assumed and recognized as of the acquisition date, as well as the fair value as of the acquisition date of
the noncontrolling interest in Vantec.

Current assets
Non-current assets (excluding intangible assets)
Intangible assets
Goodwill (not deductible for tax purposes)
Other intangible assets
Current liabilities
Non-current liabilities
Cash paid for acquisition
Fair value of noncontrolling interests

Millions of yen
35,551
28,09014,837
29,197
107,675(31,493)(23,630)(55,123)(48,930)(3,622)(52,552)

The following table shows the acquired intangible assets subject to amortization.

The acquired intangible assets subject toamortization
Customer relationships

F-45

Millions of yen

Weighted averageamortization
period (year)

29,197

17

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The fair value of the noncontrolling interest in Vantec, a listed entity, was determined by quoted market
price and included in Level 1.
The results of operations of Vantec for the period from the acquisition date to December 31, 2011 were
not material.
On a pro forma basis, revenue, net income attributable to Hitachi, Ltd. stockholders and the per share
information of the Company with assumed acquisition date for Vantec of April 1, 2010 would not differ
materially from the amounts reported in the accompanying consolidated financial statements as of andfor the nine months and three months ended December 31, 2011.

F-46

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012(23) Segment Information
The operating segments of the Company are the components for which separate financial information isavailable and for which segment profit or loss amounts are evaluated regularly by the chief operating
decision maker in deciding how to allocate resources and in assessing performance. The Company hasaggregated certain operating segments into reportable segments for reporting purpose, since suchaggregation helps financial statement users better understand the Company’s performance.
The reportable segments correspond to categories of activities classified primarily by markets, products
and services.
The Company discloses its business in ten reportable segments: Information & Telecommunication
Systems, Power Systems, Social Infrastructure & Industrial Systems, Electronic Systems & Equipment,
Construction Machinery, High Functional Materials & Components, Automotive Systems, DigitalMedia & Consumer Products, Financial Services, and Others.
The primary products and services included in each segment are as follows:
Information & Telecommunication Systems:
Systems integration, Outsourcing services, Software, Disk array subsystems, Servers, Mainframes,
Telecommunication equipment and ATMs
Power Systems:
Thermal power generation systems, Nuclear power generation systems, Hydroelectric power generation
systems and Wind power generation systems
Social Infrastructure & Industrial Systems:
Industrial machinery and plants, Elevators, Escalators and Railway systems
Electronic Systems & Equipment:
Semiconductor and LCDs manufacturing equipment, Test and measurement equipment, Medical
electronics equipment, Power tools and Electronic parts manufacturing system
Construction Machinery:Hydraulic excavators, Wheel loaders and Mining dump trucks
High Functional Materials & Components:
Wires and cables, Copper products, Semiconductor and display related materials, Circuit boards andmaterials, Specialty steels, Magnetic materials and components and High grade casting components andmaterials
Automotive Systems:
Engine management systems, Electric powertrain systems, Drive control systems and Car information
systems
Digital Media & Consumer Products:
Optical disk drives, Flat-panel TVs, LCD projectors, Room air conditioners, Refrigerators, Washingmachines and Air-conditioning equipment

F-47

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

Financial Services:
Leasing and Loan guarantees
Others:
Logistics, Information storage media, Batteries, Property management and others
Effective April 1, 2012, due to the sale of Hard disk drives and LCDs businesses, the Company
eliminated the Components & Devices segment. The businesses, which were previously included in the
Components & Devices segment, have been included in the Others. The corresponding data for the ninemonths and three months ended December 31, 2011 have been restated to conform with the change.
The following tables show segment information for the nine months ended December 31, 2012 and2011.
Revenues from Outside Customers

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

F-48

Nine months
ended
December 31,
2012

Millions of yen
Nine months
ended
December 31,
2011

1,106,496
560,257
710,880
641,739
543,190953,340
590,725572,278
230,066
558,983
6,467,954
747
6,468,701

1,077,343
487,882
630,866
688,232
540,427
999,098
568,301
611,288
232,793
1,000,521
6,836,751
925
6,837,676

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

Revenues from Intersegment Transactions

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

Nine months
ended
December 31,
2012

Millions of yen
Nine months
ended
December 31,
2011

135,869
59,002
131,361
87,2603,387
52,9502,130
54,71830,195264,201
821,073(821,073)-

127,303
50,949142,189
93,885
3,115
62,7452,407
54,67533,319297,011
867,598(867,598)-

Nine months
ended
December 31,
2012

Millions of yen
Nine months
ended
December 31,
2011

1,242,365
619,259
842,241
728,999546,577
1,006,290
592,855
626,996
260,261
823,184
7,289,027(820,326)
6,468,701

1,204,646
538,831773,055
782,117543,542
1,061,843
570,708
665,963
266,112
1,297,532
7,704,349(866,673)
6,837,676

Total Revenues

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

F-49

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

Segment Profit (Loss)
Nine months
ended
December 31,
2012

Millions of yen
Nine months
ended
December 31,
2011

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

43,15314,015
14,504
20,32732,13846,20325,988(2,341)
19,87629,655
243,518(11,583)
231,935

49,973(11,269)
14,15329,898
39,11556,774
26,835493
20,41355,513281,898(16,169)
265,729

Impairment losses for long-lived assets
Restructuring charges
Interest income
Dividends income
Other income
Interest charges
Other deductions
Equity in net loss of affiliated companies
Income before income taxes(8,560)(10,156)
8,931
4,705
8,910
(20,299)(1,272)(38,519)
175,675(12,222)(13,728)
9,657
4,614
23,372(20,793)(25,254)(14,385)
216,990

F-50

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

The following tables show segment information for the three months ended December 31, 2012 and2011.
Revenues from Outside Customers

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

F-51

Three months
ended
December 31,
2012

Millions of yen
Three months
ended
December 31,
2011

365,049
188,527
255,516
189,672
174,890314,077
190,164
181,679
73,159180,314
2,113,047
86
2,113,133

363,386
148,418
208,830
218,533
186,967
338,683
204,327
178,30373,942
343,441
2,264,830
117
2,264,947

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

Revenues from Intersegment Transactions

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

Three months
ended
December 31,
2012

Millions of yen
Three months
ended
December 31,
2011

44,356
17,236
41,38528,7391,085
17,856792
16,5207,493
86,176261,638(261,638)-

44,214
17,95950,69429,994685
22,516751
16,317
10,75996,356290,245(290,245)-

Three months
ended
December 31,
2012

Millions of yen
Three months
ended
December 31,
2011

409,405
205,763
296,901
218,411
175,975
331,933
190,956
198,199
80,652
266,490
2,374,685(261,552)
2,113,133

407,600
166,377
259,524
248,527
187,652
361,199
205,078
194,620
84,701
439,7972,555,075(290,128)
2,264,947

Total Revenues

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

F-52

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

Segment Profit (Loss)
Three months
ended
December 31,
2012

Millions of yen
Three months
ended
December 31,
2011

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

15,943
6,548
11,314
537
9,338
8,007
6,715
94
6,105
8,803
73,404(5,073)
68,331

18,926(11,874)
7,831
8,556
13,27422,96010,990(4,708)6,241
27,684
99,880(4,765)
95,115

Impairment losses for long-lived assets
Restructuring charges
Interest income
Dividends income
Other income
Interest charges
Other deductions
Equity in net earnings (loss) of affiliated companies
Income before income taxes(2,330)(5,632)
3,017
1,544
15,113(6,570)(2,910)(11,146)
59,417(6,047)(12,558)
2,375
622
20,076(6,785)(9,086)
268
83,980Intersegment transactions are recorded at the same prices used in transactions with third parties.
Corporate items include unallocated corporate expenses, such as leading edge R&D expenditures, andothers.

F-53

HITACHI, LTD. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2012

As discussed in note 2(e), effective April 1, 2012, the Company and its domestic subsidiaries changed
their depreciation method. As a result of this change, compared to the previous method, segment profit
for the nine months ended December 31, 2012, was increased by ¥1,999 million in the Information &Telecommunication Systems segment, ¥2,019 million in the Power Systems segment, ¥473 million in
the Social Infrastructure & Industrial Systems segment , ¥454 million in the Electronic Systems &Equipment segment, ¥504 million in the Construction Machinery segment, ¥143 million in the High
Functional Materials & Components segment, ¥956 million in the Automotive Systems segment, ¥95
million in the Digital Media & Consumer Products segment, ¥19 million in Financial Services segmentand ¥1,180 million in the Others, and decreased by ¥72 million in the Eliminations and Corporate items.
Segment profit for the three months ended December 31, 2012, was increased by ¥901 million in the
Information & Telecommunication Systems segment, ¥748 million in the Power Systems segment, ¥235
million in the Social Infrastructure & Industrial Systems segment , ¥67 million in the Electronic Systems& Equipment segment, ¥202 million in the Construction Machinery segment, ¥83 million in the High
Functional Materials & Components segment , ¥340 million in the Automotive Systems segment, ¥37
million in the Digital Media & Consumer Products segment, ¥13 million in Financial Services segmentand ¥550 million in the Others, and ¥18 million in the Eliminations and Corporate items.
(24) Subsequent Events
With respect to 130% call option attached unsecured convertible bond type-bonds with stock acquisitionrights (8th Series) (with inter-bond pari passu clause) issued on December 14, 2009, the amount of thebonds was ¥27,625 million at December 31, 2012. From January 1, 2013 to January 10, 2013, stockacquisition rights were exercised and the bonds with the amount of ¥27,587 million were converted into
common stocks as follows:(a) Type of the stock issued
Common stock(b) Number of the stock issued
87,025,167 shares(c) Issuance price¥317(d) Amount of the stock issued¥27,587 million(e) Amount of common stock increased¥13,793 million(f) Amount of capital surplus increased¥13,793 million

F-54

[Cover][Document Filed]

Confirmation Letter[Applicable Law]

Article 24-4-8, Paragraph 1 of the Financial Instruments and Exchange Act ofJapan[Filed to]

Director, Kanto Local Finance Bureau[Filing Date]

February 12, 2013

[Company Name]

Kabushiki Kaisha Hitachi Seisakusho[Company Name in English] Hitachi, Ltd.
[Title and Name of

Hiroaki Nakanishi, President

Representative][Name and title of CFO]

Toyoaki Nakamura, Executive Vice President and Executive Officer[Address of Head Office]6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo[Place Where Available forTokyo Stock Exchange, Inc.

Public Inspection](2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)
Osaka Securities Exchange Co., Ltd.
(8-16, Kitahama 1-chome, Chuo-ku, Osaka)
Nagoya Stock Exchange, Inc.
(8-20, Sakae 3-chome, Naka-ku, Nagoya)A-1

1. Matters Related to Adequacy of Statements Contained in the Annual Securities Report
Mr. Hiroaki Nakanishi, President, and Mr. Toyoaki Nakamura, Executive Vice President andExecutive Officer, confirmed that statements contained in the Quarterly Report for the third quarter of
144th fiscal year (from October 1, 2012 to December 31, 2012) were adequate under the Financial
Instruments and Exchange Act.
2. Special Notes
None.

A-2