FOR IMMEDIATE RELEASE

Hitachi Announces Consolidated Financial Results for Fiscal 2010
Tokyo, May 11, 2011 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced its
consolidated financial results for fiscal 2010, ended March 31, 2011.
Note:1.All figures were converted at the rate of 83 yen to the U.S. dollar, the approximate exchange
rate on the Tokyo Foreign Exchange Market as of March 31, 2011.
2.Operating income is presented in accordance with financial reporting principles and practices
generally accepted in Japan.

- more --2-Summary
In millions of yen and U.S. dollars, except Net income (loss) attributable to Hitachi, Ltd. stockholders per
share (6) and Net income (loss) attributable to Hitachi, Ltd. stockholders per American Depositary Share (7).
The years ended March 31
Yen(B)/(A)(millions)
X100(%)
2010 (A)2011(B)
1. Revenues

U.S. Dollars(millions)2011

8,968,546

9,315,807

104

112,239

2. Operating income

202,159444,508

220

5,356

3. Income before income taxes

63,580432,201

680

5,207

4. Net income (loss)(84,391)

303,126-

3,652

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

(106,961)

238,869-2,878(29.20)(29.20)

52.89
49.38

-

0.64
0.59

(292)
(292)

529
494

-

6.37
5.95

6. Net income (loss) attributable to
Hitachi, Ltd. stockholders per share
Basic
Diluted7. Net income (loss) attributable to
Hitachi, Ltd. stockholders per ADS(representing 10 shares)
Basic
DilutedNotes: 1. The Company's consolidated financial statements are prepared based on U.S.GAAPs.
Notes: 2. Operating income is presented in accordance with financial reporting principles and practices generally accepted in Japan.
Notes: 3. The figures are for 913 consolidated subsidiaries, including Variable Interest Entities, and 164 equity-method affiliates.
Notes: 3. Consolidated trust accounts are not included into the figures of consolidated subsidiaries.

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1. Qualitative Information Concerning Consolidated Business Results
1-1. Summary of Fiscal 2010 Consolidated Business Results(1) Business Results
Year ended March 31, 2011
Yen
(billions)Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

9,315.8

4%

112,239

Operating income

444.5

242.3

5,356

Income before income taxes

432.2

368.6

5,207

Net Income

303.1

387.5

3,652

Net Income attributable to Hitachi, Ltd.

238.8

345.8

2,878

Revenues

In fiscal 2010, the year ended March 31, 2011, demand in the electronics- andautomotive-related fields recovered globally. However, the Great East Japan
Earthquake on March 11 caused catastrophic damage over a wide area of easternJapan, and had a major impact on an array of corporate activities, from production
to sales. Hitachi suffered damage to its buildings and production facilities,
in-process products, and other assets. The Company also faced production
adjustments, delays in contract forming, delivering, and customer’s inspection /acceptance.
Hitachi’s consolidated revenues for fiscal 2010 increased 4% year over year to9,315.8 billion yen, despite the impact of the Great East Japan Earthquake on all
segments. In addition to higher revenues in the Construction Machinery segment,
centered on emerging countries, this overall increase was attributable to higher year
over year revenues in the High Functional Materials & Components, Automotive
Systems and Electronic Systems & Equipment segments and others in line withrecovering demand in the electronics- and automotive-related fields.
Overseas revenues increased 11% year over year, to 4,046.5 billion yen, mainly due
to a global recovery in demand in the electronics- and automotive-related fields.
Hitachi posted consolidated operating income of 444.5 billion yen, an improvementof 242.3 billion yen year over year, despite the impact of the Great East Japan
Earthquake in all segments. This much improved result was attributable toincreased revenues and improved year over year operating income in the Electronic
Systems & Equipment, Components & Devices, High Functional Materials &Components, Construction Machinery, and Automotive Systems segments. These
improvements reflected progress with business structure reform measures,procurement cost and fixed expenses reduction and project management. Especially,
the Information & Telecommunication Systems segment improved even amid ongoing
reduction in IT investment in Japan.

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Hitachi posted net other deductions of 12.3 billion yen, an improvement of 126.2
billion yen year over year. Despite recording exchange losses resulting from the
yen’s appreciation, the overall improvement reflected the recording of a net gain on
sales of marketable securities mainly due to the transfer of management rights
relating to IPS Alpha Technology, Ltd. to Panasonic Corporation, as well as adecrease of business restructure expenses. As a result, Hitachi recorded income
before income taxes of 432.2 billion yen, an improvement of 368.6 billion yen year
over year. After income taxes of 129.0 billion yen, Hitachi posted net income of
303.1 billion yen, a year over year improvement of 387.5 billion yen. After deducting
net income attributable to noncontrolling interests of 64.2 billion yen, Hitachi posted
record-high net income attributable to Hitachi, Ltd. of 238.8 billion yen, a year overyear improvement of 345.8 billion yen.
(2) Revenues and Operating Income by Segment
Results by segment were as follows.
[Information & Telecommunication Systems]
Year ended March 31, 2011
Yen
(billions)
Revenues
Operating income

Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

1,652.0(3%)

19,904

98.6

4.0

1,188

For fiscal 2010, the segment recorded revenues of 1,652.0 billion yen, a decrease of
3% year over year, with software and services, and hardware recording lower sales
due to ongoing reductions in IT investment in Japan. This overall decrease camedespite robust growth of storage solutions sales in overseas markets.
Segment operating income improved 4.0 billion yen to 98.6 billion yen, mainly the
result of higher year over year operating income from software and services due
primarily to improved project management and cost reductions even amid thenegative impacts of lower revenues and the Great East Japan Earthquake.

- more --5-[Power Systems]
Year ended March 31, 2011
Yen
(billions)Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

813.2

(8%)

9,798

Operating income

22.0

0

265

For fiscal 2010, segment revenues decreased 8% year over year to 813.2 billion yen.
The decrease was mainly attributable to the impact of the Great East Japan
Earthquake, as well as lower year over year sales from thermal power generation
systems due to some projects being pushed back, and lower sales recorded forpreventative maintenance services for nuclear power generation systems.
Segment operating income was mostly the same as the previous year at 22.0 billion
yen, as improved project management, progress with cost reductions and otherfactors offset the impact of lower revenues and the impact of the Great East Japan
Earthquake.
[Social Infrastructure & Industrial Systems]
Year ended March 31, 2011
Yen
(billions)
Revenues
Operating income

Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

1,156.9(7%)

13,939

39.9

(2.1)

481

For fiscal 2010, segment revenues decreased 7% year over year, to 1,156.9 billion
yen, despite strong growth in sales of elevators and escalators in China. The overall
decrease was mainly due to the impact of the Great East Japan Earthquake, in
addition to lower sales resulting from a transactional method change in someproducts of a manufacturing subsidiary are distributed.
Segment operating income decreased 2.1 billion year over year, to 39.9 billion yen,mainly due to the decrease in revenues, and the impact of the Great East Japan
Earthquake.

- more --6-[Electronic Systems & Equipment]
Year ended March 31, 2011
Yen
(billions)
Revenues
Operating income

Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

1,079.3

8%13,004

37.2

42.5

449

For fiscal 2010, the segment recorded an 8% year over year increase in revenues,
to 1,079.3 billion yen, despite the impact of the Great East Japan Earthquake. The
increase in revenues mainly reflected higher sales of semiconductor-related
manufacturing equipment, electronic component processing equipment and others,in line with rebounding capital expenditures in the electronics field.
Despite the impact of the Great East Japan Earthquake, segment operating income
improved 42.5 billion yen year over year, to 37.2 billion yen due to higher sales ofsemiconductor-related manufacturing equipment, electronic component processing
equipment and other products.
[Construction Machinery]
Year ended March 31, 2011
Yen
(billions)Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

751.3

29%

9,053

Operating income

49.1

31.5

593

For fiscal 2010 segment revenues increased 29% year over year, to 751.3 billion
yen, despite the impact of the Great East Japan Earthquake. This increase reflected
the effect of making Indian company Telco Construction Equipment Co., Ltd. a
consolidated subsidiary in March 2010. Another contributing factor was growth insales of hydraulic excavators and other products, especially in China and otheremerging economies such as Asia, and to resource-rich nations such as Australia.
Despite the impact of the Great East Japan Earthquake, segment operating income
improved 31.5 billion yen year over year, to 49.1 billion yen due to higher revenues.

- more --7-[High Functional Materials & Components]
Year ended March 31, 2011
Yen
(billions)
Revenues
Operating income

Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

1,408.1

13%

16,966

84.5

40.0

1,018

For fiscal 2010, segment revenues increased 13% year over year, to 1,408.1 billion
yen. This result reflects year over year growth at Hitachi Metals, Ltd., Hitachi Cable,
Ltd. and Hitachi Chemical Co., Ltd. due to healthy demand for automotive-related
components and other products.
Despite the impact of the Great East Japan Earthquake, segment operating income
improved 40.0 billion yen to 84.5 billion yen due to higher revenues.
[Automotive Systems]
Year ended March 31, 2011
Yen
(billions)Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

737.9

16%

8,890

Operating income

23.7

29.2

287

For fiscal 2010, segment revenues increased 16% year over year, to 737.9 billion
yen, despite the impact of the Great East Japan Earthquake. This increase reflected
healthy growth in sales before the earthquake, supported by a global recovery indemand, particularly in emerging countries, as well as a government program inJapan to spur vehicle sales.
Despite the impact of the Great East Japan Earthquake, segment operating income
improved 29.2 billion yen year over year, to 23.7 billion yen on account of improved
capacity utilization in line with recovering demand, and the benefits of businessstructure reforms.

- more --8-[Components & Devices]Year ended March 31, 2011
Yen
(billions)Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

809.8

7%

9,757

Operating income

43.6

42.5

526

For fiscal 2010, segment revenues increased 7% year over year, to 809.8 billion yen,mainly due to higher sales of HDDs, reflecting robust demand for use in PCs andservers.
Despite the impact of the Great East Japan Earthquake, segment operating income
improved 42.5 billion yen year over year, to 43.6 billion yen. This improvement wasdue to higher earnings in HDD operations on increased sales, the contribution fromnew products, cost reduction and others.
Note: HDD operations are conducted by Hitachi Global Storage Technologies (Hitachi GST), which has a
December 31 fiscal year-end, different from Hitachi’s March 31 year-end. Hitachi’s results for the year
ended March 31, 2011 include operating results of Hitachi GST for the period from January throughDecember 2010.

[Digital Media & Consumer Products]
Year ended March 31, 2011
Yen
(billions)Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

951.5

2%

11,465

Operating income

14.9

22.1

180

For fiscal 2010, the segment recorded a 2% increase in revenues year over year, to951.5 billion yen, despite optical disk drive-related products recording lower sales due
to lackluster demand. The segment revenue growth reflected higher year over year
sales of commercially packaged air conditioners, as well as growth in sales offlat-panel TVs, room air-conditioners, refrigerators and other products eligible for the
eco-points program in Japan.
Segment operating income improved 22.1 billion yen year over year, to 14.9 billion
yen. This result was mainly due to strong performances by commercially packaged
and room air-conditioners, in addition to the benefits of business structure reforms inflat-panel TV and other operations. This improvement was despite lower earnings
from optical disk drive-related products in line with lower sales, as well as the impactof the Great East Japan Earthquake.
Note: The optical disk drive operations are conducted by Hitachi-LG Data Storage, Inc (HLDS), which
has a December 31 fiscal year-end, different from Hitachi’s March 31 year-end. Hitachi’s results forthe year ended March 31, 2011 include the operating results of HLDS for the period from January
through December 2010.

- more --9-[Financial Services]Year ended March 31, 2011
Yen
(billions)Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

372.9

(11%)

4,494

Operating income

14.2

5.7

172

For fiscal 2010, the segment reported an 11% year over year decrease in revenues,
to 372.9 billion yen, due to the recording of large cancellation penalty payment
receipts in the previous fiscal year. This was despite healthy growth in outsourcing
and other businesses that generate revenues from commission services at Hitachi
Capital Corporation.
Despite the impact of the Great East Japan Earthquake, segment operating income
improved 5.7 billion yen to 14.2 billion yen. This was due to recording earnings
related to receivables that were recorded as gains on sale up through March 31,
2010 in line with the consolidation of securitization entities from April 1, 2010, basedon new U.S. GAAP accounting standards. The improvement also reflected reduced
financing costs at Hitachi Capital Corporation in the U.S. and Europe.
[Others]
Year ended March 31, 2011
Yen
(billions)Year-over-yearchange(% or billions yen)

U.S. dollars(millions)

Revenues

767.4

0%

9,247

Operating income

28.9

9.5

349

For fiscal 2010, segment revenues were mostly unchanged from the previous year, at
767.4 billion yen, as higher revenues at Hitachi Transport System, Ltd. on healthy growthin third-party logistics solutions were mainly offset by the impact of the transfer in June2010 of Hitachi group’s internal food service business to Nissin Healthcare Food Service
Co., Ltd.
Despite the impact of the Great East Japan Earthquake, segment operating income
improved 9.5 billion yen to 28.9 billion yen, mainly due to higher earnings in line withincreased revenues at Hitachi Transport System, Ltd.

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(3) Revenues by Market
Year ended March 31, 2011
Yen
(billions)Year-over-year% change

U.S. dollars(millions)Japan

5,269.2(1%)

63,485

Outside Japan

4,046.5

11%

48,754Asia

2,073.7

22%

24,985

North America

781.1

7%

9,411

Europe

760.0

(8%)

9,157

Other Areas

431.6

8%

5,201

Revenues in Japan were 5,269.2 billion yen, down 1% year over year. Thisdecrease was mainly due to delays in contract forming, delivering, and customer’s
inspection / acceptance, in regard to certain products due to the impact of the Great
East Japan Earthquake. This was despite higher revenues mainly in the High
Functional Materials & Components, Automotive Systems and Digital Media &Consumer Products segments in line with recovering demand in the electronics- andautomotive-related fields, and the positive impact of the eco-points program inJapan.
Outside Japan revenues increased 11% to 4,046.5 billion yen. In addition to higher
sales in the Construction Machinery Segment, mainly to emerging countries, theElectronic Systems & Equipment, High Functional Materials & Components,
Components & Devices and Automotive Systems segments posted strong revenue
growth due to recovering demand in the electronics- and automotive-related fields.
As a result, the ratio of overseas revenues to consolidated revenues increased 2
points year over year to 43%.
(4) Capital Investment, Depreciation and R&D Expenditures
Capital investment on a completion basis, excluding leasing assets, increased 10%
year over year, to 273.1 billion yen, primarily due to investments for boostingproduction to meet recovering demand.
Depreciation, excluding leasing assets, decreased 15% year over year, to 303.6
billion yen, primarily due to the strict selection of capital investments throughout theprevious year.
R&D expenditures increased 6% year over year to 395.1 billion yen, whichcorresponded to 4.2% of consolidated revenues. The increase was due mainly tofurther R&D investment to strengthen the Social Innovation Business.

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(5) Outlook for Fiscal 2011
At this time, Hitachi has not issued consolidated business forecasts for fiscal 2011
because it is difficult to rationally estimate the impact of the Great East Japan
Earthquake. Hitachi plans to announce these forecasts when disclosure becomes
possible.
1-2. Financial Position(1) Financial Position
As of March 31, 2011
Yen
(billions)

Change fromMarch 31, 2010

U.S. dollars(millions)

Total assets

9,185.6

221.1

110,670

Total liabilities

6,744.2

47.6

81,256

Interest-bearing debt

2,521.5

154.4

30,380Total Hitachi, Ltd. stockholders’ equity

1,439.8

155.2

17,348

Noncontrolling interests

1,001.5

18.3

12,067

Total Hitachi, Ltd. stockholders’ equity ratio

15.7%

1.4 point improvement-

D/E ratio (including noncontrolling interests)*1

1.03times

0.35 point improvement-

D/E ratio (including noncontrolling interests)*2

0.86times

0.18 point improvement-*1: Including liabilities (current and noncurrent) associated with the consolidation of securitization
entities in accordance with the application of new accounting standards.
*2: Excluding liabilities (current and noncurrent) associated with the consolidation of securitization
entities in accordance with the application of new accounting standards.

Total assets as of March 31, 2011 increased 221.1 billion yen from March 31, 2010 to
9,185.6 billion yen. This mainly resulted from the recording of financial assets that had
been transferred off the balance sheet to securitization entities, principally in the
Financial Services Segment, in accordance with the application of new U.S. GAAP
accounting standards effective April 1, 2010. Similarly, interest-bearing liabilities
increased by 154.4 billion yen, to 2,521.5 billion yen due to the recording of liabilities
associated with the consolidation of securitization entities. Stockholders’ equity
increased 155.2 billion yen from March 31, 2010, to 1,439.8 billion yen due mainly tothe improvement in net income attributable to Hitachi, Ltd. As a result, the total Hitachi,Ltd. stockholders’ equity ratio was 15.7%. The debt-to-equity ratio, including
noncontrolling interests, was 1.03. Excluding the impact of adopting new accounting
standards, the debt-to-equity ratio, including noncontrolling interests, improved 0.18
point from March 31, 2010 to 0.86.

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(2) Cash Flows
Year ended March 31, 2011
Yen
(billions)Year-over-yearchangeU.S. dollars(millions)

Cash flows from operating activities

841.5

43.2

10,139Cash flows from investing activities(260.3)270.2(3,137)

Free cash flows

581.2

313.5

7,003

Cash flows from financing activities(584.1)(81.8)(7,038)Operating activities provided net cash of 841.5 billion yen, a year over year increaseof 43.2 billion yen. This increase primarily reflected a major improvement in net
income.
Investing activities used net cash of 260.3 billion yen, 270.2 billion yen less than in
the previous year, mainly due to proceeds from the sale of shareholdings, and thestrict selection of investments in property, plant and equipment.
Free cash flows, the sum of cash flows from operating and investing activities, stoodat a positive 581.2 billion yen, a 313.5 billion yen improvement year over year.
Financing activities used net cash of 584.1 billion yen, primarily for debt repayment
and dividend payments.
The net result of the above items was a decrease of 22.7 billion yen in cash andcash equivalents, to 554.8 billion yen.
Free cash flows increased due to the consolidation of securitization entities inaccordance with the application of new U.S. GAAP accounting standards effectivefrom April 1, 2010. However, the application of these standards had almost thesame effect on cash outflows in financing activities.
(3) Trends in Cash Flow IndexesYear ended
March 31,2009

Year ended
March 31,2010

Year ended
March 31,2011

Hitachi, Ltd. stockholders’ equity ratio (%)

11.2

14.3

15.7

Equity ratio based on market value (%)

9.4

17.4

21.3

Cash flow to interest-bearing debt ratio

5.0

3.0

3.0

Interest coverage ratio (times)

16.5

30.4

33.8

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

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1-3. Basic Policy on the Distribution of Earnings and Fiscal 2010 and 2011
Dividends
Hitachi views enhancement of the long-term and overall interests of shareholders as animportant management objective.
The industrial sector encompassing energy, information systems, social infrastructure
and other primary businesses of Hitachi is undergoing rapid technological innovation andchanges in market structure. This makes vigorous upfront investment in R&D and plantand equipment essential for securing and maintaining market competitiveness andimproving profitability. Dividends are therefore decided based on medium- to long-termbusiness plans with an eye on ensuring the availability of internal funds for reinvestment
and the stable growth of dividends, with appropriate consideration of a range of factors,
including Hitachi’s financial condition, results of operations and dividend payout ratio.
Hitachi believes that the repurchase of its shares should be undertaken, when necessary,as part of its policy on distribution to shareholders to complement the dividend payout. In
addition, Hitachi will repurchase its own shares on an ongoing basis in order toimplement a flexible capital strategy, including business restructuring, to maximize
shareholder value so far as consistent with the dividend policy. Such action will be taken
by Hitachi after considering its future capital requirement under its business plans,
market conditions and other relevant factors.
Based on the above policies, Hitachi plans to pay an annual dividend of 8 yen per sharefor fiscal 2010, which includes a commemorative dividend of 2 yen per share for Hitachi’s
centennial anniversary. Dividends for fiscal 2011 have yet to be determined.
Cautionary Statement
Certain statements found in this document may constitute “forward-looking statements” as defined in the
U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect
management’s current views with respect to certain future events and financial performance and include
any statement that does not directly relate to any historical or current fact. Words such as “anticipate,”“believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions whichindicate future events and trends may identify “forward-looking statements.” Such statements are basedon currently available information and are subject to various risks and uncertainties that could cause
actual results to differ materially from those projected or implied in the “forward-looking statements”
and from historical trends. Certain “forward-looking statements” are based upon current assumptions of
future events which may not prove to be accurate. Undue reliance should not be placed on“forward-looking statements,” as such statements speak only as of the date of this document.
Factors that could cause actual results to differ materially from those projected or implied in any“forward-looking statement” and from historical trends include, but are not limited to:•

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

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

•

uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term
financing;- more -- 14 -•

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

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

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

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

rapid technological innovation;•

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

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

fluctuations in product demand and industry capacity;•

uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact offluctuations 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 orotherwise exiting underperforming businesses and to strengthen competitiveness and other 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 incommercial and business customs including, without limitation, contract terms and conditions andlabor relations;•

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

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

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

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

the possibility of disruption of Hitachi’s operations in Japan by earthquakes, tsunamis or other natural
disasters, including the possibility of continuing adverse effects on Hitachi’s operations as a result of
the earthquake and tsunami that struck northeastern Japan on March 11, 2011;•

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

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

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

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2. Management Policy(1) Basic Management Policy
Amid intensifying competition in world markets, the Hitachi Group has been
expanding its business through development of Hitachi and its related companies(subsidiaries and affiliated companies). Hitachi aims to improve its development by
delivering competitive products and services imbuing higher value for customers. By
taking full advantage of the diverse resources of the Hitachi Group while at the sametime reviewing and restructuring businesses, Hitachi will bolster its competitiveness.
This process will be consistent with Hitachi’s basic management policy, which is toincrease shareholder value by meeting the expectations of customers, shareholders,
employees and other stakeholders.
(2) Medium- and Long-term Management Strategy
The Hitachi Group will work to drive growth through the Social Innovation Businessand establish an even more solid financial base. This will involve capitalizing fully on
the Hitachi Group’s business base built up over the years to promote threethemes---transforming into a truly global company; expanding environmental
businesses; and fusing social infrastructure and IT. The Social Innovation Businessincludes information and telecommunication systems, power systems, industrial andtransportation systems, and social and urban systems, as well as the sophisticatedmaterials and key devices that support them.
(3) Issues Facing Hitachi Group
Japan’s economy and society was significantly impacted by the Great East Japan
Earthquake. As a corporate group responsible for social infrastructure, theHitachi Group is making a concerted effort to implement the following measures:・ Hitachi is making efforts to help with Japan’s recovery, including cooperating
to alleviate power shortages, and providing relief assistance todisaster-stricken areas.
・ Hitachi will draw upon the Hitachi Group’s outstanding environmental
technologies to provide products and services with a lower environmental
impact and thereby help protect the natural environment. In regard to the
Fukushima Nuclear Power Station, Hitachi will offer its full cooperation to thegovernment of Japan and Tokyo Electric Power Company on short-term
countermeasures, as well as on medium- and long-term measures designed to
improve and resolve the situation.
Although the global economic outlook remains uncertain, the Hitachi Group isdetermined to continue growing and to become a truly preeminent global
company. Specifically, Hitachi will continue working to achieve the Fiscal 2012
Mid-term Management Plan drafted in the previous year. To engineer the revivalof a strong Hitachi, the Company will implement the following measures:- more -- 16 -

・ Hitachi will accurately grasp new business opportunities from a global
standpoint, and enhance its local sales structures and R&D and production
systems overseas to ensure that it addresses customer needs properly in eachregion. The Company will train and fully utilize the human resources needed toachieve this goal.
・ Hitachi will focus on the Social Innovation Business, which supplies advancedsocial infrastructure utilizing information and telecommunication systems
technology. The goal is to achieve highly profitable and stable growth going
forward.
・ Hitachi will promote cost structure reform activities throughout the Group, tocomplete the shift to a globally competitive cost structure. Examples of suchactivities include global procurement and expanded bulk and centralizedpurchasing.
・ Hitachi will continue working to bolster its financial position by improving cash
flows through inventory reductions and other actions.
・ Hitachi will further cement society’s trust in the Hitachi Group by continuing toprovide products and services of the highest quality to customers.
・ Hitachi has worked to eliminate misconduct within the Hitachi Group, but
regrets that isolated incidents of misconduct have still occurred. Taking thissituation seriously, Hitachi will reaffirm its commitment to remaining steadfast
and compliant in order to eradicate misconduct.

- more -- 17 -

Consolidated Statements of Operations
The years ended March 31
Yen(B)/(A)(millions)
X100(%)
2010 (A)2011 (B)U.S. Dollars(millions)
2011

Revenues

8,968,546

9,315,807

104

112,239

Cost of sales

6,849,255

6,967,433

102

83,945

Selling, general andadministrative expenses

1,917,132

1,903,866

99

22,938Operating income

202,159444,508

220

5,356

18,18587,237480

1,051

17,816

17,507

98

211

369

69,730-840

156,764

99,54463

1,199(Interest charges)

26,252

24,87895

300(Other)130,51274,66657

900

Income before income taxes

63,580432,201

680

5,207

147,971129,075

87

1,555(84,391)

303,126-

3,652

22,57064,257285

774(106,961)

238,869-

2,878

Other income(Interest and dividends)(Other)Other deductions

Income taxes

Net income (loss)
Less: Net income attributable tononcontrolling interests
Net income (loss) attributable to
Hitachi, Ltd.

- more -- 18 -

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

As of March 31,(B)-(A)

U.S. Dollars(millions)
As of March 31,

2010 (A)2011(B)

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

8,964,464
4,775,197
577,584
53,5759,185,629
4,900,029
554,810
16,598221,165
124,832(22,774)(36,977)2011

110,670
59,0366,684
200

104,353
2,138,139
194,108

100,694
1,990,225
228,346(3,659)(147,914)
34,238

1,213
23,9792,751

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

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

183,559
119,691(1,332)(98,848)(108,534)
9,968

2,212
16,166
5,832
7,399
25,437
6,362

738,420304,160
728,007304,160(10,413)

3,665
8,771

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

8,964,464
3,931,203

9,185,629
4,088,824

221,165
157,621110,670
49,263755,181810,806

55,625

9,769-

190,868

190,868

2,300

25,737
1,229,546
385,199
1,535,540
2,765,416
1,611,962

20,4301,236,758
395,605
1,434,357
2,655,416
1,300,311(5,307)
7,212
10,406(101,183)(110,000)(311,651)

246
14,901
4,766
17,281
31,993
15,666905,183
248,271
2,267,845
1,284,658
408,810620,577
713,479(432,057)(182,783)(272,410)

219,566
891,815
243,724
2,441,389
1,439,865
409,129
603,133
922,036(493,062)(252,206)(256,566)

219,566(13,368)(4,547)
173,544
155,207319(17,444)
208,557(61,005)(69,423)
15,844

2,645
10,7452,936
29,414
17,348
4,929
7,267
11,109(5,941)(3,039)(3,091)

25,564(2,428)(26,151)
983,187

16,905(1,195)(1,371)1,001,524(8,659)1,233
24,78018,337

204
(14)
(17)
12,067

Note: Figures of Intangible assets and Other liabilities as of March 31, 2010 have been restated since the fair value measurement
related to a business combination recorded in March 31, 2010 was finalized in the first quarter ended June 30,2010.

- more -- 19 -

Consolidated Statements of Stockholders' Equity

2010

The years ended March 31
Yen
U.S. Dollars(millions)(millions)
2011
2011

Hitachi, Ltd. stockholders' equity
Common stock
Balance at beginning of year

282,033

408,810Issuance of common stock

126,776

-

-

1

319

4

408,810409,129

4,929

Balance at beginning of year

560,066

620,577

7,477

Issuance of common stock

125,644

-

-

1

319

4
(115)

Conversion of convertible bonds
Balance at end of year

4,925

Capital surplus

Conversion of convertible bonds
Sales of treasury stock(136)(9,534)Equity transactions and other(64,998)(8,229)(99)

Balance at end of year

620,577

603,133

7,267

820,440

713,479

8,596-(7,732)(93)(106,961)

238,869

2,878-(22,580)(272)

713,479

922,036

11,109Balance at beginning of year

(586,351)(432,057)(5,206)

Current-period change

154,294(61,005)(735)

Balance at end of year

(432,057)(493,062)(5,941)Retained earnings
Balance at beginning of year
Effect on retained earnings of consolidation of securitization
entities upon initial adoption of new accounting guidances
Net income (loss) attributable to Hitachi, Ltd.
Cash dividends
Balance at end of year
Accumulated other comprehensive loss

Treasury stock
Balance at beginning of year

(26,237)(26,151)(315)

Current-period change

86

24,780299

Balance at end of year

(26,151)(1,371)(17)

1,284,658

1,439,865

17,3481,129,401

983,187

11,846-(7,210)(87)

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

22,57064,257774

Dividends to noncontrolling interests(24,618)(20,184)(243)

Equity transactions and other(144,166)(18,526)(223)

Balance at end of year

983,187

1,001,524

12,0672,267,845

2,441,389

29,414(84,391)

303,126

3,652

Total equity
Comprehensive income
Net income (loss)
Other comprehensive income (loss) arising during the year:
Foreign currency translation adjustments

6,907(87,379)(1,053)Pension liability adjustments

164,023

16,076

194

Net unrealized holding gain (loss) on available-for-salesecurities

28,676(5,352)

(64)

(671)

1,988

24

Cash flow hedges
Total other comprehensive income (loss) arising during the year
Comprehensive income- more -198,935(74,667)(900)

114,544

228,459

2,753

- 20 -

Consolidated Statements of Cash FlowsThe years ended March 31
Yen
U.S. Dollars(millions)(millions)
2010
2011
2011
Cash flows from operating activities
Net income (loss)(84,391)

303,126

3,652

Depreciation

441,697382,732

4,611

Amortization

116,065

115,037

1,386(6,061)(72,987)(879)

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

Net gain on sale of investments in securities and other
Decrease (increase) in receivables(138,785)

121,606

1,465

Decrease (increase) in inventories

205,848(171,275)(2,064)

Increase in payables

62,29547,512572

Other201,631

115,803

1,395

798,299

841,554

10,139(265,438)(227,033)(2,735)

Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment, net
Purchase of intangible assets, net(85,092)(95,500)(1,151)

Purchase of tangible assets and software to be leased, net(248,669)(248,580)(2,995)

Proceeds from sale (purchase) of investments in securities
and shares of consolidated subsidiaries resulting indeconsolidation, net(129,579)

25,386306

Collection of investments in leases

172,327

286,356

3,450

Other

25,856

(975)

(12)

(530,595)(260,346)(3,137)

Decrease in interest-bearing debt

(459,488)(535,469)(6,451)

Proceeds from issuance of common stock
Dividends paid to stockholders

252,420

-

-

(134)

(22,466)(271)

Dividends paid to noncontrolling interests(24,852)(19,575)

(236)

Other

(270,290)(6,666)(80)(502,344)(584,176)(7,038)-12,030145

Net cash used in investing activities
Cash flows from financing activities

Net cash used in financing activities
Effect of consolidation of securitization entities upon initialadoption of new accounting guidances
Effect of exchange rate changes on cash and cash equivalents

4,298(31,836)(384)

Net decrease in cash and cash equivalents(230,342)(22,774)(274)

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

807,926
577,584

577,584
554,810

6,959
6,684

- more -- 21 -

Segment Information(1) Business Segments
The years ended March 31
Yen(B)/(A)(millions)
X100
2010 (A)2011 (B)(%)
1,705,587
1,652,040
97
17%
16%
882,135
813,20792
9%8%1,250,225
1,156,936
93
12%
11%
998,632
1,079,355
108
10%
10%
583,636
751,387129
7%
6%1,249,327
1,408,153
113
13%
12%
638,828
737,901116
6%
7%
754,889
809,8521077%
8%929,258
951,5961029%9%419,650
372,98189
4%
4%763,665
767,463100
8%
7%
10,175,832
10,500,871
103
100%
100%

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

U.S. Dollars(millions)2011
19,904
9,798
13,93913,004
9,053
16,966
8,890
9,757
11,465
4,494
9,247
126,517

Eliminations & Corporate items(1,207,286)(1,185,064)-(14,278)

Total

8,968,546

9,315,807

104

112,239

Note: Revenues by business segment include intersegment transactions.

- more -- 22 -

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

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

The years ended March 31
Yen(B)/(A)(millions)
X100
2010 (A)2011 (B)(%)
94,592
98,641104
41%
22%
22,07522,022100
9%
5%42,08639,95295
18%
9%(5,218)37,284(2%)
8%
17,64949,192279
8%
11%44,41284,506190
19%
18%(5,486)
23,791
(2%)
5%
1,149
43,6520%
10%(7,206)
14,949
(3%)
3%
8,518
14,255167
4%
3%19,42328,9301498%
6%231,994
457,174
197
100%
100%

U.S. Dollars(millions)
2011
1,188
265
481
449
593
1,018
287
526
180
172
349
5,508

Eliminations & Corporate items(29,835)(12,666)

-

(153)

Total

202,159444,508

220

5,356

- more -- 23 -

(2) Revenues by Market

Japan
Asia
North America
EuropeOther Areas
Outside Japan
Total

The years ended March 31
Yen(B)/(A)(millions)
X100
2010 (A)2011 (B)(%)
5,313,790
5,269,259
99
59%
57%
1,699,071
2,073,756
122
19%
22%
729,698
781,1391078%
8%824,697760,01192
9%8%
401,290431,642108
5%
5%3,654,756
4,046,548
111
41%
43%
8,968,546
9,315,807
104
100%
100%

- more -U.S. Dollars(millions)2011
63,48524,985
9,411
9,157
5,201
48,754112,239

- 24 -Per Share Information
The years ended March 31
2010

2011

2011

(Yen)

(Yen)

(U.S.Dollars)

287.13318.73

3.84

Basic

(29.20)

52.89

0.64

Diluted(29.20)

49.38

0.59

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

The reconciliations of the numbers and the amounts used in the basic and diluted
net income (loss) attributable to Hitachi, Ltd. stockholders per share computations are as follows:
The years ended March 31
2010

2011

(Number of shares)(Number of shares)

3,662,578,076

4,515,932,415

130% call option attached unsecured convertible
bonds (8th series)-

315,249,850

Number of shares on which diluted net income (loss)
per share is calculated

3,662,578,076

4,831,182,265(Millions of yen)

(Millions of yen)

(Millions of U.S. dollars)(106,961)

238,869

2,878

0

(296)

(4)

(106,961)

238,5732,874

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

2011

Effect of dilutive securities:

Net income (loss) attributable to Hitachi, Ltd.
stockholders
Effect of dilutive securities:
Other
Net income (loss) attributable to Hitachi, Ltd.
stockholders on which diluted net income (loss) per
share is calculated- more -- 25 -

Unconsolidated Financial Statements Summary
Income Statements

2010(A)The years ended March 31
Yen(B)/(A)(millions)X100(%)
2011(B)

Revenues

1,938,810

1,795,306

Cost of sales

1,471,552
467,258

U.S. Dollars(millions)
2011

93

21,6301,308,866

89

15,769486,439

104

5,861

463,757

453,322

98

5,462

3,500

33,117946

399

Other income

98,665

123,449

125

1,487

Other deductions

42,961

29,002

68

349

Ordinary income

59,204

127,564

215

1,537

Extraordinary gain

13,684

10,94480

132

Extraordinary loss

106,107

95,62090

1,152(33,217)42,888-517

Current income taxes(3,537)(21,747)

615

(262)

Deferred income taxes

5,440

360

7

4

Net income (loss)(35,120)

64,276-774

Basic EPS (yen and dollars)(9.59)

14.23

-

0.17

Diluted EPS (yen and dollars)

-

13.32

-

0.16

Gross Profit
Selling, general andadministrative expenses
Operating income

Income (loss) before income taxes

Balance Sheets
Yen(millions)
As of March 31
31,
As of March 31
31,
2010(A)
2011(B)
1,314,489
1,171,849(142,639)

U.S. Dollars(millions)
As of March 31
31,
2011
14,119(Quick assets)

1,121,264

970,177(151,087)

11,689(Inventories)

193,224

201,672

8,447

2,430

2,013,208

1,974,488(38,720)

23,7891,695,694

1,667,573(28,120)

20,091(Others)

317,514306,914(10,600)

3,698

Total assets

3,327,698

3,146,337(181,360)

37,908Current liabilities

1,700,390

1,584,185(116,204)

19,087

Fixed liabilities

739,623

621,111(118,512)

7,483(Debentures)

229,998

229,360

(638)

2,763

(Long-term loans)

387,608

279,000(108,608)

3,361(Deferred tax liabilities)

14,504

12,629(1,875)152(Others)

107,512100,121(7,391)

1,206

Total liabilities

2,440,013

2,205,296(234,717)

26,570887,684

941,041

53,356

11,3383,327,698

3,146,337(181,360)

37,908Current assets

Fixed assets(Investments)

Net assets
Liabilities and net assets- more -(B)-(A)- 26 -

May 11, 2011
Hitachi, Ltd.

Supplementary Information for the Year ended March 31, 2011
1. Summary(1)Consolidated Basis
Fiscal 2009

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

(A)

(B)

8,968.5
202.1
2.3
63.5
(84.3)(106.9)93(8.4)

9,315.8
444.5
4.8
432.2
303.1
238.8
15.1
86
(7.3)

(B)/(A)

As of
March 31, 2010

As ofMarch 31, 2011

631.1

571.4

3,110.7
2,367.1
1.38
1.04
359,746
230,948
128,798

2,521.5
2,111.7
1.03
0.86
361,745
216,393
145,352

900

913

365
535

351
562

104%
220%
680%
-

Billions of yen

Cash & cash equivalents, Short-term investments(billions of yen)
*2

Interest-bearing debt (billions of yen)Interest-bearing debt*3 (billions of yen)
D/E Ratio (Including Noncontrolling interests)*2 (times)
D/E Ratio (Including Noncontrolling interests)*3 (times)
Number of employees
Japan
Overseas
Number of consolidated subsidiaries(Including Variable Interest Entities)
Japan
Overseas*2*3

Fiscal 2010

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

(2)Unconsolidated Basis
Fiscal 2009
Revenues*1
Operating income*1
Ordinary income*1
Net income (loss)*1
Average exchange rate (yen / U.S.$)

Cash & cash equivalents, Short-term investments(billions of yen)Interest-bearing debt (billions of yen)
Number of employees

Fiscal 2010

(A)

(B)

1,938.8
3.5
59.2(35.1)
93

1,795.3
33.1
127.5
64.2
86

As of
March 31, 2010

As ofMarch 31, 2011

98.5

34.0

738.5
31,065645.6
32,926- more -(B)/(A)

93%
946%
215%
-

- 27 -

2. Consolidated Overseas Revenues by Business Segment*4(Billions of yen)

Fiscal 2009

Information & Telecommunication Systems
Power Systems
Social Infrastructure & Industrial Systems
Electronic Systems & Equipment
Construction Machinery
High Functional Materials & Components
Automotive Systems
Components & Devices
Digital Media & Consumer Products
Financial Services
OthersSubtotal
Eliminations & Corporate Items
Total
*4

Fiscal 2010

(A)

(B)

373.9
356.0
291.6
481.8
416.4
462.1
269.4
528.2
449.7
48.9
81.6
3,760.2(105.4)
3,654.7

393.8
317.1
263.2
573.4
584.5
535.0
311.1
598.3
440.0
48.5
99.3
4,164.9(118.4)
4,046.5(B)/(A)

105%
89%
90%
119%
140%
116%
116%
113%
98%
99%
122%
111%
111%

Starting from current period, the figures, which also includes previous period, of Consolidated Overseas Revenues by Business Segment has changed
to include intersegment transaction.

3. Overseas Production (Total Revenues of Overseas Manufacturing Subsidiaries) *5
Fiscal 2009
Overseas production (billions of yen)
Percentage of revenues (%)
Percentage of overseas revenues (%)*5

Fiscal 2010

(A)

(B)

2,182.424
60

2,487.02761(B)/(A)

114%-

Figures in tables 3, 7, 8 and 9 represent unaudited financial information prepared by the Company for the purpose of this supplementary information.

4. Consolidated Capital Investment by Business Segment (Completion basis, including leasing assets)(Billions of yen)

Fiscal 2009
(A)
Information & Telecommunication Systems
Power Systems
Social Infrastructure & Industrial Systems
Electronic Systems & Equipment
Construction Machinery
High Functional Materials & Components
Automotive Systems
Components & Devices
Digital Media & Consumer Products
Financial Services
OthersSubtotal
Eliminations & Corporate Items
Total
Internal use Assets
Leasing Assets

24.2
31.1
25.3
10.3
32.8
49.7
15.2
39.0
14.7
295.6
25.2
563.5
(17.1)
546.3
247.4
298.9

- more -Fiscal 2010
(B)

29.6
10.5
17.9
13.3
36.5
60.7
17.3
56.6
14.7
282.5
33.9
573.9
(17.0)
556.8
273.1
283.7

(B)/(A)

122%
34%
71%
129%
111%
122%
114%
145%
100%
96%
135%
102%
102%
110%
95%

- 28 -

5. Consolidated Depreciation by Business Segment(Billions of yen)

Fiscal 2009
(A)
Information & Telecommunication Systems
Power Systems
Social Infrastructure & Industrial Systems
Electronic Systems & Equipment
Construction Machinery
High Functional Materials & Components
Automotive Systems
Components & Devices
Digital Media & Consumer Products
Financial Services
OthersSubtotal
Eliminations & Corporate Items
Total
Internal use Assets
Leasing Assets

37.7
22.0
25.3
16.1
39.1
78.5
35.9
62.9
23.8
65.2
32.8
439.7
1.9
441.7
356.4
85.2

Fiscal 2010
(B)

(B)/(A)

35.5
17.8
21.0
13.2
35.2
68.8
27.4
53.1
20.3
58.8
27.1
378.7
3.9
382.7
303.6
79.1

6. Consolidated R&D Expenditure by Business Segment(Billions of yen)

Fiscal 2009
(A)
Information & Telecommunication Systems
Power Systems
Social Infrastructure & Industrial Systems
Electronic Systems & Equipment
Construction Machinery
High Functional Materials & Components
Automotive Systems
Components & Devices
Digital Media & Consumer Products
Financial Services
OthersCorporate Items
Total
Percentage of revenues (%)

82.2
17.6
19.9
44.1
15.4
44.8
38.4
69.1
18.7
0.1
4.6
17.0
372.4
4.2

- more -

94%
81%
84%
82%
90%
88%
76%
84%
86%
90%
83%
86%
201%
87%
85%
93%

Fiscal 2010
(B)

79.5
16.4
21.5
45.1
15.8
46.7
45.3
74.0
23.8
0.2
4.9
21.6
395.1
4.2

(B)/(A)

97%
93%
108%
102%
103%
104%
118%
107%
127%
166%
105%
127%
106%
-

- 29 -

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

As of March 31, 2011
Manufacturing,Servicesand Others
Current assets
Cash and cash equivalents
Trade receivables
Investments in leases
Current portion of financial assets transferred toconsolidated securitization entities
Inventories
OthersInvestments and advances
Property, plant and equipment
Financial assets transferred to consolidated securitization
entities

Financial Services

Total*6

4,302.1

940.0

4,900.0

533.6

108.8

554.8

1,770.8483.4

2,090.9

82.6

171.2

228.3

58.2

125.3

183.5

1,341.8

0.2

1,341.7

514.9

50.9

500.6

605.6

43.2

614.1

1,920.1

193.4

2,111.2

-

304.1

304.1

Other assets

849.8

456.7

1,256.0

Total Assets

7,677.7

1,937.6

9,185.6

Current liabilities

3,505.8926.8

4,088.8

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

605.2

347.4

810.8

Current portion of non-recourse borrowings ofconsolidated securitization entities

21.8

169.0

190.8

Trade payables

1,182.3

224.7

1,257.1

Others

1,696.4

185.6

1,829.9

886.5

484.3

1,300.3

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

-

219.5

219.5

Other noncurrent liabilities

1,075.0

64.8

1,135.5

Total Liabilities

5,467.4

1,695.5

6,744.2

Total Hitachi, Ltd. stockholders' equity

1,308.9

142.8

1,439.8

901.3

99.1

1,001.5

Total Equity

2,210.3

242.0

2,441.3

Total Liabilities and Equity

7,677.7

1,937.6

9,185.6

Interest-bearing debt*2

1,513.6

1,220.3

2,521.5

D/E ratio (including noncontrolling interests)*2

0.68

5.04

1.03

D/E ratio (including noncontrolling interests)*3

0.67

3.44

0.86

Total Hitachi, Ltd. stockholders’ equity ratio

17.0%

7.4%

15.7%

Noncontrolling interests*6

Total Figures exclude intra-segment transactions.

- more -- 30 -

8. Consolidated Statements of Operations by Financial and Non-Financial Services *5(Billions of yen)
Fiscal 2010
Manufacturing,Servicesand Others
Revenues

Financial Services

Total*6

9,112.6372.9

9,315.8

Operating income

431.7

14.2

444.5

Income before income taxes

419.7

13.9

432.2

Net income attributable to Hitachi, Ltd.

236.3

4.2

238.8

9. Consolidated Statements of Cash Flows by Financial and Non-Financial Services*5(Billions of yen)
Fiscal 2010
Manufacturing,Servicesand Others

Financial Services

Total*6

Cash flows from operating activities

671.5

190.9

841.5

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

Cash flows from financing activities(255.3)(434.2)(584.1)

-

12.0

12.0

Effect of exchange rate changes on cash and cash equivalents(31.6)(0.1)(31.8)Net decrease in cash and cash equivalents(15.5)(104.4)(22.7)Cash and cash equivalents at beginning of year

549.1

213.3

577.5

Cash and cash equivalents at end of year

533.6

108.8

554.8

Effect of consolidation of securitization entities upon initialadoption of new accounting guidances- more -- 31 -

10. Information & Telecommunication Systems(1)Revenues and Operating Income *7
Fiscal 2009

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

Fiscal 2010

(A)

(B)

1,705.5
1,139.6
152.6
987.0
565.8
194.4
57.0
28.9
141.4
144.1
94.5
77.1
17.3

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

(B)/(A)
97%
98%
104%
97%
94%
95%
87%
102%
96%
92%
104%
111%
73%

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

(2)Storage Solutions(Billions of yen)
Fiscal 2009

Revenues

Fiscal 2010

(A)

(B)

304.0

322.0

(B)/(A)106%

11. Hard Disk Drives*11*12
Fiscal 2009
Period recorded forconsolidated accounting
purposes
Shipment Period
Revenues

OperatingincomeBillions ofyenMillions of
U.S. dollars
Billions ofyenMillions of
U.S. dollars

Shipments (thousand units)
Consumer andCommercial

2.5-inch
3.5-inchServers
Emerging
External HDD
*11
*12
*13

*13

Fiscal 2010

Fiscal 2011

Three months
Total
ended June
30
(A)
(B)
(C)
(C)/(A)
Jan. 2009
Jan. 2010
Jan. 2010
to Dec. 2009 to Mar. 2010 to Dec. 2010

Three months
ending June 30(D)(Preliminary)Jan. 2011
to Mar. 2011

(D)/(B)

451.7

132.3

526.8

117%

115.4

87%

4,821

1,459

6,003

125%

1,402

96%

9.2

19.7

57.2

621%

6.6

34%

106

217

645

606%

80

37%

91,40050,60031,700
5,500
2,070
1,550

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

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

124%
129%
107%
135%
170%
224%

28,60015,800
8,900
1,900
970
930

108%
101%
115%
132%
123%
116%

The Hard Disk Drive operations are conducted by Hitachi Global Storage Technologies (Hitachi GST), which has a December 31 fiscal year-end,different from Hitachi's March 31 year-end. Hitachi's results for the twelve months ended March 31, 2011 include the operating results ofHitachi GST for the twelve months ended December 31, 2010.
Hitachi GST's operating currency is U.S. dollar. Yen figures include yen / dollar conversion fluctuation.
Shipment less than 100,000 units have been rounded, with the exception of Emerging and External HDD, where shipment less than 10,000 units

have been rounded.

###