FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of December 2003
Commission File Number 1-8320
------
Hitachi, Ltd.
-------------
(Translation of registrant's name into English)
6, Kanda-Surugadai 4-chome, Chiyoda-ku, Tokyo 101-8010, Japan
-------------------------------------------------------------
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F _________
---------
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ________
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): ________
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ________ No x
-------
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-________
This report on Form 6-K contains the following:
1. Interim business report for the first half of the year ending
March 31, 2004.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Hitachi, Ltd.
-------------------------------------
(Registrant)
Date February 3, 2004 By /s/ Takashi Hatchoji
------------------------ -------------------------------------
Takashi Hatchoji
Vice President and Executive Officer
(Summary Translation)
Interim Business Report
(from April 1, 2003 to September 30, 2003)
Hitachi, Ltd.
Tokyo, Japan
(Note) Certain information including product introduction is omitted from this
English translation.
To Our Shareholders:
In providing this report on our business results for the first half of
fiscal 2003, we wish to express our deep gratitude to all our shareholders for
the understanding and support you have extended to the Hitachi Group.
During the half-year period under review, in Japan private-sector plant
and equipment investment showed some improvement, but with public works
investment and consumer spending continuing to be restrained, the economy failed
to find any path to a real recovery.
In this business environment, since the preceding fiscal year Hitachi
has been proceeding with strategic alliances, M&As and reorganizations. These
have included the acquisition of IBM Corporation's hard disk drive (HDD)
operations and the transfer of system LSI and other semiconductor business
operations to Renesas Technology Corp., a company jointly established with
Mitsubishi Electric Corporation. During the period under review, in which these
moves were completed, forming a new business structure, consolidated net sales
rose 3% from the same period of the preceding fiscal year, to JPY 4,041.4
billion.
Our main segment, Information & Telecommunication Systems, moved
forward with the integration of the acquired HDD business into Hitachi's
operations. With the profitability of such business still in the process of
being strengthened, segment operating income, while still within the projected
range, showed a major decrease. Financial Services and Digital Media & Consumer
Products also showed a sharp drop in operating income. Thus, consolidated
operating income decreased 67% from the same period of the preceding fiscal
year, to JPY 20.2 billion. Other income, including net gain on securities, was
JPY 111.9 billion, and other deductions amounted to JPY 41.6 billion. As a
result, Hitachi recorded income before income taxes and minority interests of
JPY 90.5 billion, and net income of JPY 5.3 billion.
On an unconsolidated basis, Hitachi recorded net sales of JPY 1,128.2
billion and posted an operating loss of JPY 6.9 billion. Ordinary income
amounted to JPY 10.0 billion. Hitachi recorded an extraordinary gain of JPY 8.4
billion from the sale of subsidiaries' common stock and investments in
securities, and an extraordinary loss of JPY 4.9 billion from impairment loss on
investments in subsidiaries and securities. As a result, net income amounted to
JPY 19.2 billion.
At a meeting of the Board of Directors, it was decided to pay an
interim dividend of JPY 3 per share.
Fiscal 2003 marked the start of "i.e. HITACHI Plan II," a medium-term
management plan running to fiscal 2005 that emphasizes management goals. The
storage solutions business, which supports the recording and utilization of the
vast quantities of information possessed by customers, and the urban renewal
business, which provides urban functions with higher safety and more comfort and
convenience, are among the areas of operations that the "i.e. HITACHI Plan II"
will give priority to strengthening. A wide range of HDD applications will be
developed, starting with digital consumer electronics and in-vehicle terminals,
as Hitachi, together with the companies of the Hitachi Group, move to create new
businesses that will form the core of future operations, with the goal of
establishing a high-profit structure.
With respect to the implementation of the new plan, the ordinary
general meeting of shareholders held in June 2003 approved the adoption of a
Committee System corporate structure. Under the new system, the Board of
Directors focuses on decisions involving basic management policies and
supervision of execution by Executive Officers, while Executive Officers elected
by the Board are responsible for executing the business operations. The aim of
the new system is to speed up business operations and to achieve greater
transparency in management, thereby responding to the trust placed in us by our
shareholders. The major companies of the Hitachi Group are also moving to a
Committee System structure to speed up management and to raise efficiency by
strengthening the group's integrated management.
1
With regard to the business outlook, expectations for an expansion of
the Japanese economy are running up against concerns about a reversal. As such,
the state of the economy will continue to preclude optimism. For its part,
Hitachi intends to focus the total capabilities of the Hitachi Group towards
achieving the goals of the "i.e. HITACHI Plan II" and thereby establishing a
solid foundation for generating profits.
We hope we can look forward to receiving your continuing support and
understanding of our efforts.
December 2003
Tsutomu Kanai
Chairman of the Board
Etsuhiko Shoyama
President and Chief Executive Officer
2
Outline of Business Results
Information & Telecommunication Systems
Sales rose sharply from the acquisition of IBM Corporation's HDD operations, and
in the software and services businesses, solid results were turned in by
outsourcing services for financial institutions, helping push up segment sales
20%, to JPY 1,053.2 billion. Operating income decreased 87%, to JPY 5.3 billion.
Electronic Devices
The segment saw sales decrease 21%, to JPY 607.5 billion, due to the effect of
the transfer of system LSI and other semiconductor operations to equity-method
affiliate Renesas Technology Corp. The segment recorded operating income of JPY
3.6 billion, rebounding from an operating loss of JPY 7.9 billion in the same
period of the preceding year.
Power & Industrial Systems
Sales of power generation equipment and other plant operations were sluggish.
However, Hitachi Construction Machinery Co., Ltd. posted higher sales in China
and other overseas markets, and sales of automotive products were boosted by the
inclusion of the sales of UNISIA JECS Corporation, which became a wholly-owned
subsidiary on October 1, 2002. Thus, at JPY 1,073.4 billion, segment sales
stayed more or less unchanged. Operating income decreased 29%, to JPY 7.9
billion.
Digital Media & Consumer Products
Sales of plasma TVs, projection TVs and other display equipment increased.
However, segment sales declined 2%, to JPY 585.4 billion, due primarily to a
decrease in sales of room air conditioners and washing machines. Operating
income decreased 87%, to JPY 0.7 billion.
High Functional Materials & Components
At Hitachi Cable, Ltd., Hitachi Chemical Co., Ltd. and Hitachi Metals, Ltd.,
construction materials and plant construction operations were sluggish. However,
good growth was registered by information systems and electronic related
materials primarily for semiconductors, and by high-grade metal products for
automobiles. Segment sales increased 1%, to JPY 622.2 billion. Operating income
rose 2%, to JPY 9.2 billion.
Logistics, Services & Others
Hitachi Transport System, Ltd. showed a solid performance. However, the changes
that took place in the semiconductor and HDD operations meant the exclusion of
sales of such products in this segment. Thus, segment sales decreased 13%, to
JPY 612.9 billion. The segment recorded an operating loss of JPY 0.3 billion,
compared to an operating income of JPY 1.4 billion in the same period of the
preceding year.
Financial Services
Low interest rates and the slow pace of automobile loans to individuals had an
adverse effect on the performance of Hitachi Capital Corporation, which provides
companies and individuals with leases, loans and other financial services.
Segment sales decreased 9%, to JPY 267.9 billion. Operating income decreased
56%, to JPY 8.1 billion.
3
Information on Common Stock (As of September 30, 2003)
Authorized 10,000,000,000 shares
Issued 3,368,124,286 shares
Capital Stock JPY282,032,490,653
Number of Shares per Unit 1,000 shares
Number of Shareholders 424,163
Shareholders Composition
--------------------------------------------------------------------------------------------------------------------
Class of Shareholders Number of Number of Shares Held Percentage to
Shareholders (shares) Total (%)
--------------------------------------------------------------------------------------------------------------------
Financial Institutions and Securities Firms 488 1,097,964,005 32.60
--------------------------------------------------------------------------------------------------------------------
Individuals 418,414 1,043,093,812 30.97
--------------------------------------------------------------------------------------------------------------------
Foreign Investors 1,062 1,054,595,335 31.31
--------------------------------------------------------------------------------------------------------------------
Others 4,195 172,139,941 5.11
--------------------------------------------------------------------------------------------------------------------
Governments 4 331,193 0.01
--------------------------------------------------------------------------------------------------------------------
Total 424,163 3,368,124,286 100.00
--------------------------------------------------------------------------------------------------------------------
Transition of Shareholders Composition
--------------------------------------------------------------------------------------------------------------------
Class of Shareholders March 2002 March 2003 September 2003
--------------------------------------------------------------------------------------------------------------------
Financial Institutions and Securities Firms 38.66% 36.83% 32.60%
--------------------------------------------------------------------------------------------------------------------
Individuals 26.27% 30.44% 30.97%
--------------------------------------------------------------------------------------------------------------------
Foreign Investors 31.82% 29.38% 31.31%
--------------------------------------------------------------------------------------------------------------------
Others 3.25% 3.34% 5.11%
--------------------------------------------------------------------------------------------------------------------
Governments 0.00% 0.01% 0.01%
--------------------------------------------------------------------------------------------------------------------
Total 100.00% 100.00% 100.00%
--------------------------------------------------------------------------------------------------------------------
10 Largest Shareholders
---------------------------------------------------------------------------------------------------------
Name of Shareholders Number of Shares Held Percentage to Total
---------------------------------------------------------------------------------------------------------
shares %
Japan Trustee Services Bank, Ltd. 211,389,000 6.28
---------------------------------------------------------------------------------------------------------
NATS CUMCO 186,108,080 5.53
---------------------------------------------------------------------------------------------------------
The Chase Manhattan Bank, N.A. London 168,458,263 5.00
---------------------------------------------------------------------------------------------------------
The Master Trust Bank of Japan, Ltd. 164,277,321 4.88
---------------------------------------------------------------------------------------------------------
Nippon Life Insurance Company 112,772,960 3.35
---------------------------------------------------------------------------------------------------------
State Street Bank and Trust Company 87,989,148 2.61
---------------------------------------------------------------------------------------------------------
Hitachi Employees' Shareholding Association 86,143,952 2.56
---------------------------------------------------------------------------------------------------------
The Dai-Ichi Mutual Life Insurance Company 79,080,222 2.35
---------------------------------------------------------------------------------------------------------
Morgan Grenfell and Co. Limited 75,313,000 2.24
---------------------------------------------------------------------------------------------------------
Hitachi, Ltd. 69,798,603 2.07
---------------------------------------------------------------------------------------------------------
Notes: NATS CUMCO is the nominee name of the depositary bank, Citibank, N.A.,
for the aggregate of the Company's American Depositary Receipts (ADRs)
holders.
4
Board of Directors and Executive Officers (As of September 30, 2003)
Board of Directors
--------------------------------------------------------------------------------
Chairman of the Board Tsutomu Kanai
--------------------------------------------------------------------------------
Director *Etsuhiko Shoyama
--------------------------------------------------------------------------------
Director *Yoshiki Yagi
--------------------------------------------------------------------------------
Director *Yoshiro Kuwata
--------------------------------------------------------------------------------
Director Shigemichi Matsuka
--------------------------------------------------------------------------------
Director Kotaro Muneoka
--------------------------------------------------------------------------------
Director **Ginko Sato
--------------------------------------------------------------------------------
Director **Hiromichi Seya
--------------------------------------------------------------------------------
Director **Akira Chihaya
--------------------------------------------------------------------------------
Director **Toshiro Nishimura
--------------------------------------------------------------------------------
Director Hiroshi Kuwahara
--------------------------------------------------------------------------------
Director Takashi Kawamura
--------------------------------------------------------------------------------
Director Masayoshi Hanabusa
--------------------------------------------------------------------------------
(Notes) 1. The Directors marked with * are Executive Officers.
2. The Directors marked with ** are outside directors who fulfill the
qualification requirements to be outside directors as provided for
in Article 188.2.7-2 of the Commercial Code of Japan.
3. Members of each committee are as follows.
Nominating Committee: Tsutomu Kanai (Chairman), Etsuhiko Shoyama,
Ginko Sato, Hiromichi Seya, Toshiro Nishimura
Audit Committee: Shigemichi Matsuka (Chairman), Kotaro
Muneoka, Ginko Sato, Hiromichi Seya, Toshiro
Nishimura
Compensation Committee: Tsutomu Kanai (Chairman), Etsuhiko Shoyama,
Hiromichi Seya, Akira Chihaya, Toshiro
Nishimura
Executive Officers
--------------------------------------------------------------------------------------------------------------------
Representative Executive Officer Etsuhiko Shoyama
President and Chief Executive Officer
--------------------------------------------------------------------------------------------------------------------
Representative Executive Officer Yoshiki Yagi In charge of finance and corporate auditing.
Executive Vice President and
Executive Officer
--------------------------------------------------------------------------------------------------------------------
Representative Executive Officer Yoshiro Kuwata In charge of business development and global
Executive Vice President and business.
Executive Officer
--------------------------------------------------------------------------------------------------------------------
Representative Executive Officer Kazuo Kumagai In charge of legal matters, corporate
Executive Vice President and communications and sales operations.
Executive Officer
--------------------------------------------------------------------------------------------------------------------
Representative Executive Officer Katsukuni Hisano In charge of automotive systems business.
Executive Vice President and
Executive Officer
--------------------------------------------------------------------------------------------------------------------
Senior Vice President and Executive Takao Matsui In charge of corporate marketing and sales
Officer operations.
--------------------------------------------------------------------------------------------------------------------
Senior Vice President and Executive Isao Ono In charge of information & telecommunication
Officer systems business.
--------------------------------------------------------------------------------------------------------------------
Senior Vice President and Executive Masaharu Sumikawa In charge of power & industrial systems business
Officer and production engineering.
--------------------------------------------------------------------------------------------------------------------
Senior Vice President and Executive Michiharu Nakamura In charge of research & development and new
Officer businesses.
--------------------------------------------------------------------------------------------------------------------
Senior Vice President and Executive Hiromi Kuwahara In charge of corporate strategy and human
Officer resources.
--------------------------------------------------------------------------------------------------------------------
Vice President and Executive Officer Minoru Tsukada In charge of sales operations (Kansai area).
--------------------------------------------------------------------------------------------------------------------
Vice President and Executive Officer Yoshito Tsunoda In charge of urban planning and development
systems business.
--------------------------------------------------------------------------------------------------------------------
Vice President and Executive Officer Hiroaki Nakanishi In charge of global business.
--------------------------------------------------------------------------------------------------------------------
5
--------------------------------------------------------------------------------------------------------------------
Vice President and Executive Officer Tadahiko Ishigaki In charge of corporate marketing.
--------------------------------------------------------------------------------------------------------------------
Vice President and Executive Officer Shozo Saito In charge of power systems business.
--------------------------------------------------------------------------------------------------------------------
Vice President and Executive Officer Manabu Shinomoto In charge of platform and network systems business.
--------------------------------------------------------------------------------------------------------------------
Vice President and Executive Officer Takuya Tajima In charge of social and industrial infrastructure
systems business.
--------------------------------------------------------------------------------------------------------------------
Vice President and Executive Officer Takashi Hatchoji In charge of legal matters, corporate
communications and corporate auditing.
--------------------------------------------------------------------------------------------------------------------
Vice President and Executive Officer Kazuo Furukawa In charge of information & telecommunication
systems business.
--------------------------------------------------------------------------------------------------------------------
Executive Officer Makoto Ebata In charge of group management.
--------------------------------------------------------------------------------------------------------------------
Executive Officer Yasuo Sakuta In charge of intellectual property.
--------------------------------------------------------------------------------------------------------------------
Executive Officer Takao Suzuki In charge of sales operations (Chugoku area).
--------------------------------------------------------------------------------------------------------------------
Executive Officer Koichiro Nishikawa In charge of business development.
--------------------------------------------------------------------------------------------------------------------
Executive Officer Tsugio Momose In charge of digital media business.
--------------------------------------------------------------------------------------------------------------------
Executive Officer Kazuhiro Mori In charge of sales operations (Chubu area).
--------------------------------------------------------------------------------------------------------------------
Executive Officer Iwao Hara In charge of human resources.
--------------------------------------------------------------------------------------------------------------------
Executive Officer Takashi Miyoshi In charge of finance.
--------------------------------------------------------------------------------------------------------------------
Executive Officer Taiji Hasegawa In charge of automotive systems business.
--------------------------------------------------------------------------------------------------------------------
Executive Officer Masahiro Hayashi In charge of system solutions business.
--------------------------------------------------------------------------------------------------------------------
6
Interim Financial Information for the First Half of the Year Ending March 31, 2004
Consolidated Financial Statements (Summary)
Consolidated Balance Sheets
---------------------------
Billions of yen
-------------------------------------------
September 30, 2003 March 31, 2003
------------------------------------------------------------------------------------------------
(Assets)
Current assets 5,132.3 5,193.4
Investments and advances 877.7 726.4
Property, plant and equipment 2,339.0 2,601.0
Other assets 1,535.2 1,658.4
Total assets 9,884.4 10,179.3
(Liabilities and stockholders' equity)
Current liabilities 3,933.0 4,005.2
Noncurrent liabilities 3,375.7 3,569.3
Minority interests 750.1 751.5
Total stockholders' equity 1,825.5 1,853.2
Total liabilities and stockholders' equity 9,884.4 10,179.3
------------------------------------------------------------------------------------------------
Consolidated Income Statements
Years ended March 31
----------------------------------------------------------------
First half of 2004 First half of 2003 2003
---------------------------------------------------------------------------------------------------------------------
(Billions of yen)
Net sales 4,041.4 3,916.4 8,191.7
Operating income 20.2 61.6 152.9
Income before income taxes and minority interests 90.5 33.4 96.8
Income before minority interests 14.3 17.3 44.1
Net income 5.3 5.6 27.8
---------------------------------------------------------------------------------------------------------------------
Consolidated Statements of Cash Flows
-------------------------------------
Years ended March 31
----------------------------------------------------------------
First half of 2004 First half of 2003 2003
---------------------------------------------------------------------------------------------------------------------
(Billions of yen)
Cash flows from operating activities 224.5 191.5 646.5
Cash flows from investing activities (157.1) (128.9) (619.2)
Cash flows from financing activities (173.7) (197.8) (207.1)
Effect of exchange rate changes on cash and
cash equivalents (12.7) (18.8) (21.2)
Net decrease in cash and cash equivalents (119.0) (154.1) (201.2)
Cash and cash equivalents at beginning of period 828.1 1,029.3 1,029.3
Cash and cash equivalents at end of period 709.0 875.2 828.1
---------------------------------------------------------------------------------------------------------------------
(Notes) 1. The consolidated financial statements have been prepared in
conformity with accounting principles generally accepted in the
United States.
2. Figures for the first half of 2003 have been restated due to the
adoption of Emerging Issues Task Force Issue No. 03-2 (January
2003), "Accounting for the Transfer to the Japanese Government of
the Substitutional Portion of Employee Pension Fund Liabilities."
3. Segment information and operating income have been prepared in
conformity with accounting principles generally accepted in Japan.
4. The number of consolidated subsidiaries is 967 and the number of
companies accounted for under the equity method is 165 as of the
end of September 2003.
7
Unconsolidated Financial Statements (Summary)
Unconsolidated Balance Sheets
-----------------------------
Billions of yen
-------------------------------------------
September 30, 2003 March 31, 2003
------------------------------------------------------------------------------------------------
(Assets)
Current assets 1,681.9 1,921.6
Fixed assets 1,879.9 1,903.3
Tangible fixed assets 296.7 420.4
Intangible fixed assets 146.7 155.8
Investments 1,436.4 1,327.0
Total assets 3,561.9 3,825.0
(Liabilities and stockholders' equity)
Current liabilities 1,712.1 1,819.0
Fixed liabilities 483.6 631.9
Total liabilities 2,195.8 2,451.0
Capital stock 282.0 282.0
Capital surplus 268.7 268.7
Retained earnings 812.8 802.8
Unrealized holding gains on securities 34.4 22.1
Treasury stock (31.9) (1.8)
Total stockholders' equity 1,366.1 1,373.9
Total liabilities and stockholders' equity 3,561.9 3,825.0
------------------------------------------------------------------------------------------------
Unconsolidated Income Statements
--------------------------------
Years ended March 31
----------------------------------------------------------------
First half of 2004 First half of 2003 2003
---------------------------------------------------------------------------------------------------------------------
(Billions of yen)
Net sales 1,128.2 1,515.6 3,112.4
Operating income (loss) (6.9) 0.2 53.7
Ordinary income (loss) 10.0 (2.4) 52.0
Extraordinary gain 8.4 32.9 92.1
Extraordinary loss 4.9 - 63.1
Income before income taxes 13.5 30.5 81.0
Net income 19.2 19.7 28.2
---------------------------------------------------------------------------------------------------------------------
(Notes) 1. Accumulated depreciation of tangible fixed assets: JPY814.2 billion
2. Net income per share for the first half of the year ended March 31,
2004: JPY5.82
3. Extraordinary gain of JPY8.4 billion is gain on sale of
subsidiaries' common stock and investments in securities.
4. Extraordinary loss of JPY4.9 billion is impairment loss on
investments in subsidiaries and securities.
8
Five-Year Summary
Years ended March 31
----------------------------------------------------------------------
2000 2001 2002 2003 2004 (1st half)
--------------------------------------------------------------------------------------------------------------------
(Billions of yen)
Consolidated Financial Information
Net sales 8,001.2 8,416.9 7,993.7 8,191.7 4,041.4
Overseas sales 2,343.6 2,625.6 2,549.1 2,645.2 1,405.0
Operating income (loss) 174.3 342.3 (117.4) 152.9 20.2
Net income (loss) 16.9 104.3 (483.8) 27.8 5.3
Unconsolidated Financial Information
Net sales 3,771.9 4,015.8 3,522.2 3,112.4 1,128.2
Operating income (loss) 40.8 98.5 (84.7) 53.7 (6.9)
Net income (loss) 11.8 40.1 (252.6) 28.2 19.2
--------------------------------------------------------------------------------------------------------------------
Net Sales by Industry Segment (Consolidated basis)
First half of year ended March 31, 2004
-----------------------------------------------------------------------------------------------------------
Information & Telecommunication Systems 22%
Electronic Devices 13%
Power & Industrial Systems 22%
Digital Media & Consumer Products 12%
High Functional Materials & Components 13%
Logistics, Services & Others 13%
Financial Services 5%
Subtotal sales 4,822.7 billion yen
Eliminations & Corporate items 781.3 billion yen
Net sales 4,041.4 billion yen
-----------------------------------------------------------------------------------------------------------
(Note) Percentage figures shown above are the proportions of each segment sales
to subtotal sales.
Operating Income (Loss) by Industry Segment (Consolidated basis)
First half of year ended March 31, 2004
-----------------------------------------------------------------------------------------------------------
(Billions of yen)
Information & Telecommunication Systems 5.3
Electronic Devices 3.6
Power & Industrial Systems 7.9
Digital Media & Consumer Products 0.7
High Functional Materials & Components 9.2
Logistics, Services & Others (0.3)
Financial Services 8.1
Subtotal 34.7
Eliminations & Corporate items (14.5)
Total 20.2
-----------------------------------------------------------------------------------------------------------
Overseas Sales by Market (Consolidated basis)
First half of year ended March 31, 2004
----------------------------------------------------------------------------
Asia 39%
North America 30%
Europe 22%
Other Areas 9%
----------------------------------------------------------------------------
9