Table of Contents

 

 

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 August 2010

Commission File Number 1-8320

 

 

Hitachi, Ltd.

(Translation of registrant’s name into English)

 

 

6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8280, 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-            

 

 

 

---

Table of Contents

This report on Form 6-K contains the following:

 

1.	Press release dated July 30, 2010 regarding consolidated financial results for the first quarter of fiscal 2010

 

2.	Press release dated July 30, 2010 regarding revisions of consolidated interim business forecasts for fiscal 2010

---

Table of Contents

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 August 4, 2010		By		/s/ Toshiaki Kuzuoka
				Toshiaki Kuzuoka
				Vice President and Executive Officer

---

Table of Contents

FOR IMMEDIATE RELEASE

Hitachi Announces Consolidated Financial Results

For the First Quarter of Fiscal 2010

Tokyo, July 30, 2010 — Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced its consolidated financial results for the first quarter of fiscal 2010, ended June 30, 2010.

 

Notes:		1.		All figures, except for the outlook for full year and the first half of fiscal 2010, were converted at the rate of 88 yen to the U.S. dollar, the approximate exchange rate on the Tokyo Foreign Exchange Market as of June 30, 2010.
		2.		Operating income (loss) is presented in accordance with financial reporting principles and practices generally accepted in Japan.

---

Table of Contents

- 2 -

 

Summary

In millions of yen and U.S. dollars, except Net income (loss) attributable to Hitachi, Ltd. stockholders per share (6) and Net income (loss) attributable to Hitachi, Ltd. stockholders per American Depositary Share (7).

 

		Three months ended June 30
		Yen (millions)					(B)/(A) X100 (%)		U.S.  Dollars (millions)
		2009 (A)			2010 (B)				2010
1. Revenues		1,892,901			2,152,566		114		24,461
2. Operating income (loss)		(50,596	)		88,475		—		1,005
3. Income (loss) before income taxes		(80,828	)		144,284		—		1,640
4. Net income (loss)		(90,767	)		117,468		—		1,335
5. Net income (loss) attributable to Hitachi, Ltd.		(82,665	)		86,058		—		978
6. Net income (loss) attributable to Hitachi, Ltd. stockholders per share
Basic		(24.87	)		19.06		—		0.22
Diluted		(24.87	)		17.80		—		0.20
7. Net income (loss) attributable to Hitachi, Ltd. stockholders per ADS (representing 10 shares)
Basic		(249	)		191		—		2.17
Diluted		(249	)		178		—		2.02

 

Notes:		1.				The Company’s consolidated financial statements are prepared based on U.S.GAAPs.
		2.				Operating income (loss) is presented in accordance with financial reporting principles and practices generally accepted in Japan.
		3.				The figures are for 882 consolidated subsidiaries, including Variable Interest Entities, and 162 equity-method affiliates. Consolidated trust accounts are not included into the figures of consolidated subsidiaries.

---

Table of Contents

- 3 -

 

1. Qualitative Information Concerning Consolidated Business Results

(1) Summary of Fiscal 2010 First-Quarter Consolidated Business Results

 

		Three months ended June 30, 2010
		Yen (billions)		Year-over-year change (% or billions yen)			U.S.  dollars (millions)
Revenues		2,152.5		14	%		24,461
Operating income		88.4		139.0			1,005
Income before income taxes		144.2		225.1			1,640
Net income		117.4		208.2			1,335
Net income attributable to Hitachi, Ltd.		86.0		168.7			978

During the first quarter of fiscal 2010, the global economy generally showed a moderate recovery trend, driven by growth in China and other emerging nations, in addition to economic recovery in the U.S..

China’s real GDP growth rate in the April-June quarter remained high, rising 10.3% year over year. However, there are concerns about the economic impact of shifting to a more flexible exchange rate system for the yuan and government measures to prevent the economy from overheating. The U.S., meanwhile, moved onto a relatively stable recovery despite the fact that employment and income conditions remained lackluster, the recovery in consumer spending and capital expenditures waned and benefits of economic stimulus measures dissipated. In Europe, there are concerns about the economic impact of fiscal austerity measures by governments in the region.

In Japan, in addition to external demand underpinned by strong Asian economies, the economy showed some encouraging signs in internal demand, as government measures drove improved personal consumption and the fall in capital expenditures tapered off. However, the outlook remains unclear due to the structural problems such as ongoing yen appreciation and a faltering share market, coupled with soft employment and income conditions, the government’s fiscal deficit and others.

Hitachi’s consolidated revenues for the first quarter were 2,152.5 billion yen, up 14% year over year. Significant year-over-year increases were recorded mainly in the High Functional Materials & Components, Automotive Systems, Electronic Systems & Equipment, and Components & Devices segments in line with recovering demand in automotive- and electronics-related fields.

Overseas revenues increased 24% year over year, to 979.3 billion yen largely due to a global recovery in demand.

Hitachi posted consolidated operating income of 88.4 billion yen, representing a 139.0 billion yen turnaround year over year. This much improved result was attributable to higher revenues, which led to a large improvement in the High Functional Materials & Components and Components & Devices segments and all segments posted profits.

Hitachi also recorded net other income of 55.8 billion yen, an improvement of 86.0 billion yen from the net other deductions recorded in the corresponding period of the previous fiscal year, despite recording exchange losses resulting from the yen’s appreciation. The improvement reflected in part the recording of gains on the sale of marketable securities resulting from the transfer of some shares of IPS Alpha Technology, Ltd. to Panasonic Corporation.

As a result of the above, Hitachi recorded income before income taxes of 144.2 billion yen, an improvement of 225.1 billion yen year over year. After income taxes of 26.8 billion yen, Hitachi posted net income of 117.4 billion yen, 208.2 billion yen better year over year. After deducting net income attributable to noncontrolling interests of 31.4 billion yen, Hitachi posted net income attributable to Hitachi, Ltd. of 86.0 billion yen, a 168.7 billion yen improvement on the previous fiscal year’s first quarter.

---

Table of Contents

- 4 -

 

(2) Revenues and Operating Income by Segment

Results by segment were as follows:

[Information & Telecommunication Systems]

 

		Three months ended June 30, 2010
		Yen (billions)		Year-over-year change (% or billions yen)			U.S.  dollars (millions)
Revenues		348.9		(3	%)		3,966
Operating income		0.1		(5.1	)		2

The segment recorded revenues of 348.9 billion yen, a decrease of 3% year over year, with software and services, and hardware both recording lower revenues due to ongoing reduction for IT investment in Japan. A bright spot was strong revenues in storage solutions, particularly for overseas markets.

Segment operating income dropped 5.1 billion yen, to 0.1 billion yen. This was the result of lower earnings in both software and services, and hardware because of declines in revenues.

[Power Systems]

 

		Three months ended June 30, 2010
		Yen (billions)		Year-over-year change (% or billions yen)			U.S.  dollars (millions)
Revenues		177.8		5	%		2,021
Operating income		4.6		3.1			53

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

Segment operating income improved 3.1 billion yen to 4.6 billion yen in line with higher revenues.

---

Table of Contents

- 5 -

 

[Social Infrastructure & Industrial Systems]

 

		Three months ended June 30, 2010
		Yen (billions)		Year-over-year change (% or billions yen)			U.S. dollars (millions)
Revenues		231.6		(6	%)		2,632
Operating income		2.5		6.4			29

The segment recorded revenues of 231.6 billion yen, down 6% year over year, reflecting lower sales of plant-related equipment and construction, and elevators and escalators. However, control systems for the industrial field and certain other products and services recorded solid growth.

Segment operating income improved 6.4 billion yen year over year, to 2.5 billion yen, despite the impact of lower revenues. The improved earnings were attributable to higher earnings on elevators and escalators resulting from cost-cutting and other measures.

[Electronic Systems & Equipment]

 

		Three months ended June 30, 2010
		Yen (billions)		Year-over-year change (% or billions yen)			U.S. dollars (millions)
Revenues		250.2		23	%		2,844
Operating income		5.3		17.2			61

Segment revenues rose 23% year over year, to 250.2 billion yen, the result of increased sales mainly of semiconductor-related manufacturing equipment on the back of rebounding capital expenditures in the electronics field, coupled with strong sales of medical electronics equipment.

Segment operating income improved 17.2 billion yen to 5.3 billion yen due to higher sales of semiconductor-related manufacturing equipment and other products.

[Construction Machinery]

 

		Three months ended June 30, 2010
		Yen (billions)		Year-over-year change (% or billions yen)			U.S. dollars (millions)
Revenues		162.0		27	%		1,841
Operating income		6.9		8.5			79

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

Segment operating income improved 8.5 billion yen year over year, to 6.9 billion yen due to the higher revenues.

---

Table of Contents

- 6 -

 

[High Functional Materials & Components]

 

		Three months ended June 30, 2010
		Yen (billions)		Year-over-year change (% or billions yen)			U.S. dollars (millions)
Revenues		345.5		26	%		3,926
Operating income		26.2		29.4			298

Segment revenues rose 26% year over year, to 345.5 billion yen, reflecting strong results at Hitachi Metals, Ltd., Hitachi Chemical Co., Ltd. and Hitachi Cable, Ltd. due to a global recovery in demand for automotive components and electronics-related products.

Segment operating income improved 29.4 billion yen year over year, to 26.2 billion yen. In addition to higher revenues, this was due to the benefits of business structure reform measures initiated in the previous fiscal year.

[Automotive Systems]

 

		Three months ended June 30, 2010
		Yen (billions)		Year-over-year change (% or billions yen)			U.S. dollars (millions)
Revenues		175.7		38	%		1,997
Operating income		4.2		17.3			48

Segment revenues increased 38% year over year, to 175.7 billion yen on the strength of a global recovery in demand brought about by government programs in certain countries to support vehicle sales.

The segment recorded operating income of 4.2 billion yen, a year-over-year improvement of 17.3 billion yen on account of improved capacity utilization in line with recovering demand, and the benefits of business structural reforms.

[Components & Devices]

 

		Three months ended June 30, 2010
		Yen (billions)		Year-over-year change (% or billions yen)			U.S. dollars (millions)
Revenues		201.9		21	%		2,295
Operating income		16.7		27.0			191

Segment revenues rose 21% year over year, to 201.9 billion yen due to strong sales of HDDs, reflecting robust demand for use in PCs and servers.

Operating income for the segment improved 27.0 billion yen year over year, to 16.7 billion yen, as earnings improved in HDD operations in line with rising sales.

 

Note:		HDD operations are conducted by Hitachi Global Storage Technologies (Hitachi GST), which has a December 31 fiscal year-end, different from Hitachi’s March 31 year-end. Hitachi’s results for the three months ended June 30, 2010 include operating results of Hitachi GST for the three months ended March 31, 2010.

---

Table of Contents

- 7 -

 

[Digital Media & Consumer Products]

 

		Three months ended June 30, 2010
		Yen (billions)		Year-over-year change (% or billions yen)			U.S. dollars (millions)
Revenues		256.6		21	%		2,917
Operating income		7.1		20.6			81

The segment recorded a 21% increase in revenues year over year, to 256.6 billion yen. Optical disk drive-related products recorded strong sales largely due to increasing PC demand. Higher sales of flat-panel TVs and other products also boosted revenues, as did strong sales of air conditioners, particularly overseas in China and other markets.

The segment recorded operating income of 7.1 billion yen, an improvement of 20.6 billion yen from the first three months of fiscal 2009. In addition to benefits from business structural reforms in flat-panel TVs and other areas, higher sales led to increased earnings in optical disk drive-related products, air conditioners and other businesses.

 

Note:		The optical disk drive operations are conducted by Hitachi-LG Data Storage, Inc. (HLDS), which has a December 31 fiscal year-end, different from Hitachi’s March 31 year-end. Hitachi’s results for the three months ended June 30, 2010 include operating results of HLDS for the three months ended March 31, 2010.

[Financial Services]

 

		Three months ended June 30, 2010
		Yen (billions)		Year-over-year change (% or billions yen)			U.S. dollars (millions)
Revenues		94.2		5	%		1,071
Operating income		5.1		3.0			59

The segment reported a 5% year-over-year increase in revenues, to 94.2 billion yen, largely due to higher revenues at Hitachi Capital Corporation due to factors such as increased transaction volumes and the sale of assets with expired lease terms.

Operating income for the segment improved 3.0 billion yen year over year, to 5.1 billion yen, in line with higher revenues and the benefits of cost-cutting and other measures at Hitachi Capital.

[Others]

 

		Three months ended June 30, 2010
		Yen (billions)		Year-over-year change (% or billions yen)			U.S. dollars (millions)
Revenues		179.9		2	%		2,045
Operating income		6.0		4.0			68

The segment recorded a 2% rise in revenues year over year, to 179.9 billion yen due to robust growth in revenues at Hitachi Transport System, Ltd. on expansion of third-party logistics solutions.

Segment operating income improved 4.0 billion yen year over year, to 6.0 billion yen, mainly due to higher earnings at Hitachi Transport System.

---

Table of Contents

- 8 -

 

(3) Revenues by Market

 

		Three months ended June 30, 2010
		Yen (billions)		Year-over-year % change			U.S.  dollars (millions)
Japan		1,173.2		7	%		13,332
Outside Japan		979.3		24	%		11,129
Asia		502.9		41	%		5,716
North America		193.0		12	%		2,193
Europe		187.6		5	%		2,132
Other Areas		95.7		14	%		1,088

Revenues in Japan increased 7% year over year, to 1,173.2 billion yen. This increase reflected mainly higher revenues in the High Functional Materials & Components, Automotive Systems, and Digital Media & Consumer Products segments in line with recovering demand in the automotive and electronics-related fields.

Outside Japan revenues increased 24% year over year, to 979.3 billion yen. In addition to much higher sales in the Construction Machinery Segment, mainly to China, the Electronic Systems & Equipment, Components & Devices, High Functional Materials & Components and Automotive Systems segments posted strong revenues.

As a result, the ratio of overseas revenues to consolidated revenues was 45%, 3 percentage points higher year over year.

(4) Capital Investment, Depreciation and R&D Expenditures

Capital investment on a completion basis, excluding leasing assets, decreased 27% year over year, to 46.9 billion yen, as Hitachi continued to strictly select investments in general. There was, however, an increase in capital investment in the Electronic Systems & Equipment Segment.

Depreciation, excluding leasing assets, decreased 16% year over year, to 75.1 billion yen, primarily due to the continued strict selection of capital investments.

R&D expenditures increased 7%, to 92.5 billion yen, which corresponded to 4.3% of consolidated revenues, due mainly to further R&D investment to strengthen the Social Innovation Business.

---

Table of Contents

- 9 -

 

2. Financial Position

(1) Financial Position

 

		As of June 30, 2010
		Yen (billions)			Change from March 31,  2010			U.S. dollars (millions)
Total assets		9,458.7			494.3			107,486
Total liabilities		7,123.6			427.0			80,951
Interest-bearing debt		3,092.2			725.1			35,139
Total Hitachi, Ltd. stockholders’ equity		1,354.1			69.4			15,388
Noncontrolling interests		980.9			(2.2	)		11,147
Total Hitachi, Ltd. stockholders’ equity ratio		14.3	%		0.0	%		—
D/E ratio (including noncontrolling interests)*1		1.32 times			0.28 point increase			—
D/E ratio (including noncontrolling interests)*2		1.06 times			0.02 point increase			—

 

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

Total assets as of June 30, 2010 increased 494.3 billion yen from March 31, 2010 to 9,458.7 billion yen. This resulted from the recording of financial assets that had been transferred off the balance sheet to securitized entities in accordance with the application of new U.S.GAAP accounting standards effective from April 1, 2010. Interest-bearing liabilities increased 725.1 billion yen to 3,092.2 billion yen due to the recording of liabilities associated with the consolidation of securitized entities. Stockholders’ equity increased 69.4 billion yen to 1,354.1 billion yen from March 31, 2010 due to the improvement in net income attributable to Hitachi, Ltd. As a result, the total Hitachi, Ltd. stockholders’ equity ratio was 14.3%, the same as at March 31, 2010. The debt-to-equity ratio, including noncontrolling interests, increased 0.28 points, to 1.32. Excluding the impact of adopting new accounting standards, the debt-to-equity ratio, including noncontrolling interests, increased 0.02 points to 1.06.

(2) Cash Flows

 

		Three months ended June 30, 2010
		Yen (billions)			Year-over-year change		U.S. dollars (millions)
Cash flows from operating activities		131.5			144.2		1,494
Cash flows from investing activities		(79.5	)		71.8		(904	)
Free cash flows		51.9			216.1		590
Cash flows from financing activities		26.5			107.4		302

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

Investing activities used net cash of 79.5 billion yen, 71.8 billion yen less year over year, mainly due to the strict selection of capital expenditures and sale of certain shareholdings.

Free cash flows, the sum of cash flows from operating and investing activities, was 51.9 billion yen.

Financing activities provided net cash of 26.5 billion yen, a 107.4 billion yen change from the net cash used in the corresponding quarter of the previous fiscal year. This was due to an increase in short-term debt due to the issuance of commercial paper by a subsidiary and other factors.

The net result of the above items was an increase of 78.1 billion yen in cash and cash equivalents, to 655.7 billion yen.

Free cash flows increased due to the consolidation of securitized entities in accordance with the application of new U.S. GAAP accounting standards effective from April 1, 2010. However, the application of these standards had almost the same effect on cash outflows in financing activities.

---

Table of Contents

- 10 -

 

3. Outlook for Six Months Period Ending September 30, 2010

 

		The first half of fiscal 2010 ending September 30, 2010
		Yen (billions)		Year-over-year change (% or  billions yen)			U.S. dollars (millions)
Revenues		4,400.0		7	%		51,764
Operating income		170.0		194.7			2,000
Income before income taxes		200.0		310.1			2,352
Net Income		147.0		285.8			1,729
Net Income attributable to Hitachi, Ltd.		100.0		233.2			1,176

 

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

In terms of the overall business environment going forward, the outlook for the Japanese economy is still uncertain despite being on the road to recovery supported by strong Asian economies. The uncertainty is being created by the yen’s ongoing appreciation and the impact that the unwinding of stimulus measures will have on the economy. While the Chinese economy is expected to maintain a high growth rate, the global economy as a whole remains uncertain, including lackluster European economies due to fiscal austerity measures and a continuing slowing U.S. economy where employment and personal income conditions remain weak. This overall uncertainty is expected to continue for the time being.

Under these circumstances, Hitachi has revised consolidated forecasts for the first half of fiscal 2010 issued on May 11, 2010 when it announced its financial results for fiscal 2009. Details are shown in the table above. Regarding full-year forecasts, Hitachi has not revised its previous forecasts at this time for the full year because of uncertainty surrounding the business environment in the second half of fiscal 2010. This uncertainty includes trends in the global economy, especially in the U.S. and Europe, foreign currency fluctuations, fluctuations in raw material prices, and the impact of unwinding economic stimulus measures such as the Eco-Points program and tax breaks on environmentally friendly products.

Projections for the second quarter of fiscal 2010 assume exchange rates of 85 yen to the U.S. dollar and 110 yen to the euro.

---

Table of Contents

- 11 -

 

Other

(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries causing changes in scope of consolidation)

None

(2) Application of simple accounting treatment and/or specific accounting treatment in preparing the quarterly consolidated financial statements

Yes

(3) Changes in accounting principles, procedures and presentation methods for preparing quarterly consolidated financial statements.

Yes

For details, please see “2. Changes in matters concerning accounting standards” on page 16.

Cautionary Statement

Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions 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 projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.

Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:

 

•

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

 

•

exchange rate fluctuations for the yen and other currencies in which Hitachi makes significant sales 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 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 and intensifying price competition for such products, particularly in the Components & Devices and the Digital Media & Consumer Products segments;

 

•

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

---

Table of Contents

- 12 -

 

•

rapid technological innovation;

 

•

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

 

•

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

 

•

fluctuations in product demand and industry capacity;

 

•

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

 

•

uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business;

 

•

uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness and other cost reduction measures;

 

•

general socio-economic and political conditions and the regulatory and trade environment of Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect restrictions by other nations on imports, or differences in commercial and 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 those related to electronics and data processing technologies;

 

•

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

 

•

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

 

•

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

 

•

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

 

•

uncertainty as to the accuracy of key assumptions Hitachi uses to valuate its significant employee benefit related costs; and

 

•

uncertainty as to Hitachi’s ability to attract and retain skilled personnel.

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

---

Table of Contents

- 13 -

 

Consolidated Statements of Operations

 

		Three months ended June 30
		Yen (millions)					(B)/(A) X100 (%)		U.S. Dollars (millions)
		2009 (A)			2010 (B)				2010
Revenues		1,892,901			2,152,566		114		24,461
Cost of sales		1,460,255			1,594,464		109		18,119
Selling, general and administrative expenses		483,242			469,627		97		5,337
Operating income (loss)		(50,596	)		88,475		—		1,005
Other income		7,452			77,337		—		879
(Interest and dividends)		5,552			5,381		97		61
(Other)		1,900			71,956		—		818
Other deductions		37,684			21,528		57		245
(Interest charges)		7,034			6,306		90		72
(Other)		30,650			15,222		50		173
Income (loss) before income taxes		(80,828	)		144,284		—		1,640
Income taxes		9,939			26,816		270		305
Net income (loss)		(90,767	)		117,468		—		1,335
Less: Net income (loss) attributable to noncontrolling interests		(8,102	)		31,410		—		357
Net income (loss) attributable to Hitachi, Ltd.		(82,665	)		86,058		—		978

---

Table of Contents

- 14 -

 

Consolidated Balance Sheets

 

		Yen (millions)									U.S. Dollars (millions)
		As of March 31, 2010 (A)			As of June 30, 2010 (B)			(B)-(A)			As of June 30, 2010
Total Assets		8,964,464			9,458,768			494,304			107,486
Current assets		4,775,197			4,978,353			203,156			56,572
Cash and cash equivalents		577,584			655,769			78,185			7,452
Short-term investments		53,575			52,578			(997	)		597
Trade receivables
Notes		104,353			121,327			16,974			1,379
Accounts		2,138,139			1,868,528			(269,611	)		21,233
Investments in leases		194,108			201,049			6,941			2,285
Current portion of financial assets transferred to consolidated securitization entities		—			244,852			244,852			2,782
Inventories		1,222,077			1,339,885			117,808			15,226
Other current assets		485,361			494,365			9,004			5,618
Investments and advances		712,993			629,205			(83,788	)		7,150
Property, plant and equipment		2,219,804			2,169,081			(50,723	)		24,649
Intangible assets		518,050			518,966			916			5,897
Financial assets transferred to consolidated securitization entities		—			413,749			413,749			4,702
Other assets		738,420			749,414			10,994			8,516
Total Liabilities and Equity		8,964,464			9,458,768			494,304			107,486
Current liabilities		3,931,203			4,048,312			117,109			46,004
Short-term debt and current portion of long-term debt		755,181			888,051			132,870			10,091
Current portion of non-recourse borrowings of consolidated securitization entities		—			249,210			249,210			2,832
Trade payables
Notes		25,737			24,073			(1,664	)		274
Accounts		1,229,546			1,170,991			(58,555	)		13,307
Advances received		385,199			446,380			61,181			5,073
Other current liabilities		1,535,540			1,269,607			(265,933	)		14,427
Noncurrent liabilities		2,765,416			3,075,372			309,956			34,947
Long-term debt		1,611,962			1,598,012			(13,950	)		18,159
Non-recourse borrowings of consolidated securitization entities		—			357,012			357,012			4,057
Retirement and severance benefits		905,183			890,167			(15,016	)		10,116
Other liabilities		248,271			230,181			(18,090	)		2,616
Total equity		2,267,845			2,335,084			67,239			26,535
Total Hitachi, Ltd. stockholders’ equity		1,284,658			1,354,119			69,461			15,388
Common stock		408,810			408,813			3			4,646
Capital surplus		620,577			603,744			(16,833	)		6,861
Legal reserve and retained earnings		713,479			791,805			78,326			8,998
Accumulated other comprehensive loss		(432,057	)		(448,968	)		(16,911	)		(5,102	)
(Foreign currency translation adjustments)		(182,783	)		(201,222	)		(18,439	)		(2,287	)
(Pension liability adjustments)		(272,410	)		(255,795	)		16,615			(2,907	)
(Net unrealized holding gain on available-for-sale securities)		25,564			10,165			(15,399	)		116
(Cash flow hedges)		(2,428	)		(2,116	)		312			(24	)
Treasury stock		(26,151	)		(1,275	)		24,876			(14	)
Noncontrolling interests		983,187			980,965			(2,222	)		11,147

 

Note:

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

---

Table of Contents

- 15 -

 

Consolidated Statements of Cash Flows

 

		Three months ended June 30
		Yen (millions)						U.S. Dollars (millions)
		2009			2010			2010
Cash flows from operating activities
Net income (loss)		(90,767	)		117,468			1,335
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation		109,286			95,097			1,081
Amortization		27,147			27,556			313
Gain on sale of investments in securities and other		(1,214	)		(70,486	)		(801	)
Decrease in receivables		316,041			283,584			3,223
Increase in inventories		(10,204	)		(143,976	)		(1,636	)
Decrease in payables		(211,477	)		(38,822	)		(441	)
Other		(151,606	)		(138,919	)		(1,579	)
Net cash provided by (used in) operating activities		(12,794	)		131,502			1,494
Cash flows from investing activities
Purchase of property, plant and equipment, net		(83,493	)		(45,722	)		(520	)
Purchase of intangible assets, net		(17,253	)		(21,418	)		(243	)
Purchase of tangible assets and software to be leased, net		(71,847	)		(62,394	)		(709	)
Proceeds from sale (purchase) of investments in securities and shares of consolidated subsidiaries resulting in deconsolidation, net		(7,865	)		17,877			203
Collection of investments in leases		33,868			70,861			805
Other		(4,854	)		(38,771	)		(441	)
Net cash used in investing activities		(151,444	)		(79,567	)		(904	)
Cash flows from financing activities
Increase (decrease) in interest-bearing debt		(67,606	)		38,098			433
Dividends paid to stockholders		(124	)		(6	)		(0	)
Dividends paid to noncontrolling interests		(12,640	)		(7,825	)		(89	)
Other		(439	)		(3,673	)		(42	)
Net cash provided by (used in) financing activities		(80,809	)		26,594			302
Effect of consolidation of securitization entities upon initial adoption of new accounting guidances		—			12,030			137
Effect of exchange rate changes on cash and cash equivalents		5,039			(12,374	)		(141	)
Net increase (decrease) in cash and cash equivalents		(240,008	)		78,185			888
Cash and cash equivalents at beginning of the period		807,926			577,584			6,563
Cash and cash equivalents at end of the period		567,918			655,769			7,452

---

Table of Contents

- 16 -

 

Segment Information

(1) Business Segments

 

		Three months ended June 30
		Yen (millions)						(B)/(A) X100 (%)		U.S. Dollars (millions)
		2009 (A)			2010 (B)					2010
Revenues
Information & Telecommunication Systems		359,640			348,976			97		3,966
		17	%		14	%
Power Systems		169,349			177,818			105		2,021
		8	%		7	%
Social Infrastructure & Industrial Systems		246,822			231,606			94		2,632
		11	%		10	%
Electronic Systems & Equipment		204,259			250,270			123		2,844
		9	%		10	%
Construction Machinery		127,932			162,026			127		1,841
		6	%		7	%
High Functional Materials & Components		273,389			345,521			126		3,926
		13	%		14	%
Automotive Systems		127,573			175,778			138		1,997
		6	%		7	%
Components & Devices		167,418			201,950			121		2,295
		8	%		8	%
Digital Media & Consumer Products		212,176			256,693			121		2,917
		10	%		11	%
Financial Services		90,109			94,235			105		1,071
		4	%		4	%
Others		176,532			179,921			102		2,045
		8	%		8	%
Subtotal		2,155,199			2,424,794			113		27,554
		100	%		100	%
Eliminations & Corporate items		(262,298	)		(272,228	)		—		(3,094	)
Total		1,892,901			2,152,566			114		24,461

 

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

---

Table of Contents

- 17 -

 

		Three months ended June 30
		Yen (millions)						(B)/(A) X100 (%)		U.S. Dollars (millions)
		2009 (A)			2010 (B)					2010
Operating income (loss)
Information & Telecommunication Systems		5,297			184			3		2
		—			0	%
Power Systems		1,480			4,639			313		53
		—			6	%
Social Infrastructure & Industrial Systems		(3,875	)		2,528			—		29
		—			3	%
Electronic Systems & Equipment		(11,810	)		5,391			—		61
		—			6	%
Construction Machinery		(1,652	)		6,940			—		79
		—			8	%
High Functional Materials & Components		(3,245	)		26,208			—		298
		—			31	%
Automotive Systems		(13,082	)		4,257			—		48
		—			5	%
Components & Devices		(10,219	)		16,799			—		191
		—			20	%
Digital Media & Consumer Products		(13,533	)		7,114			—		81
		—			8	%
Financial Services		2,095			5,153			246		59
		—			6	%
Others		1,922			6,002			312		68
		—			7	%
Subtotal		(46,622	)		85,215			—		968
		—			100	%
Eliminations & Corporate Items		(3,974	)		3,260			—		37
Total		(50,596	)		88,475			—		1,005

 

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

---

Table of Contents

- 18 -

 

(2) Revenues by Market

 

		Three months ended June 30
		Yen (millions)						(B)/(A) X100 (%)		U.S. Dollars (millions)
		2009 (A)			2010 (B)					2010
Japan		1,100,667			1,173,224			107		13,332
		58	%		55	%
Asia		357,052			502,974			141		5,716
		19	%		23	%
North America		172,362			193,017			112		2,193
		9	%		9	%
Europe		178,809			187,645			105		2,132
		10	%		9	%
Other Areas		84,011			95,706			114		1,088
		4	%		4	%
Outside Japan		792,234			979,342			124		11,129
		42	%		45	%
Total		1,892,901			2,152,566			114		24,461
		100	%		100	%

# # #

---

Table of Contents

July 30, 2010

Hitachi, Ltd.

Supplementary Information for the First Quarter ended June 30, 2010

1. Summary

(Consolidated basis)

 

		2009			2010
		Three months ended June 30			Three months ended June 30
		(A)			(B)			(B)/(A)X100
Revenues*1		1,892.9			2,152.5			114	%
Operating income (loss)*1		(50.5	)		88.4			—
Percentage of revenues		(2.7	)		4.1			—
Income (loss) before income taxes*1		(80.8	)		144.2			—
Net income (loss)*1		(90.7	)		117.4			—
Net income (loss) attributable to Hitachi, Ltd.*1		(82.6	)		86.0			—
Average exchange rate (yen / U.S.$)		97			92			—
Net interest and dividends*1		(1.4	)		(0.9	)		—

 

*1	Billions of yen

 

		As of March 31, 2010		As of June 30, 2010
Cash & cash equivalents, Short-term investments (billions of yen)		631.1		708.3
Interest-bearing debt*2 (billions of yen)		2,367.1		3,092.2
Interest-bearing debt*3 (billions of yen)		2,367.1		2,086.0
D/E Ratio (Including Noncontrolling interests)*2 (times)		1.04		1.32
D/E Ratio (Including Noncontrolling interests)*3 (times)		1.04		1.06
Number of employees		359,746		359,184
Japan		230,948		224,851
Overseas		128,798		134,333
Number of consolidated subsidiaries (Including Variable Interest Entities)		900		882
Japan		365		353
Overseas		535		529

 

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

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

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

 

								(Billions of yen	)
		2009			2010
		Three months ended June 30			Three months ended June 30
		(A)			(B)			(B)/(A)X100
Information & Telecommunication Systems		85.4			93.4			109	%
Power Systems		68.0			74.7			110	%
Social Infrastructure & Industrial Systems		59.5			55.8			94	%
Electronic Systems & Equipment		101.6			137.2			135	%
Construction Machinery		94.7			129.3			137	%
High Functional Materials & Components		107.0			135.0			126	%
Automotive Systems		52.7			75.9			144	%
Components & Devices		117.9			149.0			126	%
Digital Media & Consumer Products		101.7			124.0			122	%
Financial Services		12.3			11.7			96	%
Others		18.1			22.2			123	%
Subtotal		819.4			1,008.6			123	%
Eliminations & Corporate items		(27.2	)		(29.3	)		—
Total		792.2			979.3			124	%

 

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

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

---

Table of Contents

- 2 -

 

3. Consolidated Capital Investment by Business Segment (Completion basis, including leasing assets)^*4

 

		(Billions of yen)
		2009			2010
		Three months ended June 30			Three months ended June 30
		(A)			(B)			(B)/(A)X100
Information & Telecommunication Systems		8.3			5.4			66	%
Power Systems		8.5			2.8			33	%
Social Infrastructure & Industrial Systems		4.4			3.0			69	%
Electronic Systems & Equipment		2.6			3.1			119	%
Construction Machinery		6.5			5.7			88	%
High Functional Materials & Components		13.0			11.4			88	%
Automotive Systems		4.6			2.5			55	%
Components & Devices		8.9			8.3			93	%
Digital Media & Consumer Products		3.3			2.5			77	%
Financial Services		76.1			65.6			86	%
Others		7.1			5.0			70	%
Subtotal		143.8			115.7			81	%
Eliminations & Corporate items		(5.9	)		(1.5	)		—
Total		137.8			114.2			83	%
Internal use Assets		64.3			46.9			73	%
Leasing Assets		73.4			67.3			92	%
4. Consolidated Depreciation by Business Segment*4
								(Billions of yen	)
		2009			2010
		Three months ended June 30			Three months ended June 30
		(A)			(B)			(B)/(A)X100
Information & Telecommunication Systems		10.7			8.3			78	%
Power Systems		5.4			4.3			81	%
Social Infrastructure & Industrial Systems		6.1			5.3			87	%
Electronic Systems & Equipment		4.9			3.3			68	%
Construction Machinery		9.4			8.7			93	%
High Functional Materials & Components		18.6			17.1			92	%
Automotive Systems		8.3			6.7			81	%
Components & Devices		15.8			13.4			84	%
Digital Media & Consumer Products		6.2			4.9			79	%
Financial Services		15.0			15.0			100	%
Others		7.9			6.8			86	%
Subtotal		108.7			94.3			87	%
Eliminations & Corporate items		0.5			0.7			147	%
Total		109.2			95.0			87	%
Internal use Assets		89.5			75.1			84	%
Leasing Assets		19.7			19.9			101	%
5. Consolidated R&D Expenditure by Business Segment*4
		(Billions of yen)
		2009			2010
		Three months ended June 30			Three months ended June 30
		(A)			(B)			(B)/(A)X100
Information & Telecommunication Systems		18.5			19.7			106	%
Power Systems		3.4			3.9			116	%
Social Infrastructure & Industrial Systems		4.1			4.4			108	%
Electronic Systems & Equipment		9.5			9.9			104	%
Construction Machinery		3.3			3.9			117	%
High Functional Materials & Components		10.6			11.3			106	%
Automotive Systems		10.9			10.4			95	%
Components & Devices		16.8			17.7			105	%
Digital Media & Consumer Products		4.4			5.9			133	%
Financial Services		0.0			0.0			134	%
Others		0.8			0.7			99	%
Corporate items		3.7			4.2			113	%
Total		86.6			92.5			107	%
Percentage of revenues (%)		4.6			4.3			—

---

Table of Contents

- 3 -

 

6. Information & Telecommunication Systems

 

(1) Revenues and Operating Income*6
		(Billions of yen)

 

		2009		2010
		Three months ended June 30		Three months ended June 30
		(A)		(B)		(B)/(A) X100
Revenues		359.6		348.9		97	%
Software & Services		236.8		233.6		99	%
Software		35.5		35.6		100	%
Services		201.3		198.0		98	%
Hardware		122.8		115.2		94	%
Storage*7		40.3		46.0		114	%
Servers*8		12.2		10.0		82	%
PCs*9		7.0		5.6		80	%
Telecommunication		32.3		29.9		93	%
Others		31.0		23.5		76	%
Operating income		5.2		0.1		3	%

 

 

*6	Figures for each product exclude intra-segment transactions. The Company has changed the business segment classification started from Fiscal 2009. Figures for three months period ended June 30, 2009 has been restated to reflect the reclassification.

*7	Figures for Storage include disk array subsystems, etc.

*8	Figures for Servers include general-purpose computers, UNIX servers, etc.

*9	Figures for PCs include PC servers, client PCs (only commercial use), etc.

(2) Storage Solutions

 

		(Billions of yen)
		2009		2010
		Three months ended June 30		Three months ended June  30
		(A)		(B)		(B)/(A)X100
Revenues		69.0		74.0		107	%

 

7.	Hard Disk Drives*10*11

 

		2009									2010
		Three  months ended June 30			Three months ended September 30			Six months ended September  30			Three  months ended June 30					Three months ending September 30					Six months ending September 30
Period recorded for consolidated accounting purposes		(A)			(B)			(C)			(D)		(D)/(A) X100			(E)(Preliminary)		(E)/(B) X100			(F) (Preliminary)		(F)/(C) X100
Shipment Period		Jan. 2009 to Mar. 2009			Apr. 2009 to Jun. 2009			Jan. 2009 to Jun. 2009			Jan. 2010 to Mar. 2010					Apr. 2010 to Jun. 2010					Jan. 2010 to Jun. 2010
Revenues
Billions of yen		97.7			108.0			205.6			132.3		135	%		138.4		128	%		270.7		132	%
Millions of U.S. dollars		1,026			1,109			2,135			1,459		142	%		1,504		136	%		2,963		139	%
Operating income (loss)
Billions of yen		(5.4	)		(3.1	)		(8.6	)		19.7		—			17.1		—			36.8		—
Millions of U.S. dollars		(57	)		(32	)		(89	)		217		—			186		—			403		—
Shipments (thousand units)*12		19,200			22,300			41,500			26,500		138	%		28,200		126	%		54,700		132	%
Consumer and Commercial
2.5-inch		10,200			11,700			21,900			15,700		154	%		16,600		141	%		32,300		147	%
3.5-inch		7,600			8,700			16,400			7,800		102	%		8,200		94	%		16,000		98	%
Servers		1,100			1,200			2,300			1,500		130	%		1,900		157	%		3,400		144	%
Emerging		220			440			660			780		360	%		860		194	%		1,650		248	%
External HDD		—			220			220			800		—			660		295	%		1,460		—

 

 

*10

The Hard Disk Drive operations are conducted by Hitachi Global Storage Technologies (Hitachi GST), which has a December 31 fiscal year-end, different from Hitachi’s March 31 year-end. Hitachi’s results for the three months ended June 30, 2010 include the operating results of Hitachi GST for the three months ended March 31, 2010.

*11	Hitachi GST’s operating currency is U.S. dollar. Yen figures include yen / dollar conversion fluctuation.

*12	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.

# # #

---

Table of Contents

FOR IMMEDIATE RELEASE

Hitachi Announces Revisions of Consolidated Interim Business Forecasts for Fiscal 2010

Tokyo, July 30, 2010 — Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced revisions to the Company’s consolidated business forecasts for the first half of fiscal 2010, the year ending March 31, 2011, which were announced on May 11, in light of recent business performance.

1. Revisions of Consolidated Interim Business Forecasts for Fiscal 2010

(From April 1 to September 30, 2010)

 

														(Millions of yen	)
		Revenues			Operating income (loss)			Income (loss) before income taxes			Net income (loss)			Net income (loss) attributable to Hitachi, Ltd
Previous forecast (A)		4,300,000			125,000			145,000			95,000			55,000
Revised forecast (B)		4,400,000			170,000			200,000			147,000			100,000
(B)-(A)		100,000			45,000			55,000			52,000			45,000
% change		2.3	%		36.0	%		37.9	%		54.7	%		81.8	%
First half of fiscal 2009 ended September 30,2009		4,124,958			(24,760	)		(110,139	)		(138,874	)		(133,221	)

Reasons for Revisions

Hitachi has raised its overall revenue forecast for the first half of fiscal 2010, the six-month period from April 1 to September 30, 2010, from the previous forecast issued on May 11, 2010, due to expectations for firm growth as a whole in line with recovering demand, particularly in automotive- and electronics-related fields.

Hitachi has also raised its forecast for operating income from the previous forecast due to projected higher revenues, primarily in the Electronic Systems & Equipment, High Functional Materials & Components and Digital Media & Consumer Products segments, as well as to progress cutting costs, including fixed costs.

Furthermore, Hitachi is forecasting an improvement in net other income from its previous forecast, reflecting mainly an improvement in equity in net loss of affiliated companies. Consequently, income before income taxes, net income and net income attributable to Hitachi, Ltd. are all projected to be better than the previous forecasts.

---

Table of Contents

- 2 -

 

However, Hitachi has not revised its previous forecasts at this time for the full year because of uncertainty surrounding the business environment in the second half of fiscal 2010. This uncertainty includes trends in the global economy, especially in the U.S. and Europe, foreign currency fluctuations, fluctuations in raw material prices, and the impact of unwinding economic stimulus measures such as the Eco-Points program and tax breaks on environmentally friendly products in Japan.

2. Revisions of Consolidated Interim Business Forecasts by Business Segment for Fiscal 2010

 

(1) Revenues by Business Segment
								(Billions of yen)
		Previous forecast (A)			Revised forecast (B)			((B)-(A))			Fiscal 2009
Information & Telecommunication Systems		760.0			760.0			0			794.7
Power Systems		440.0			400.0			(40.0	)		389.6
Social Infrastructure & Industrial Systems		480.0			500.0			20.0			534.6
Electronic Systems & Equipment		500.0			510.0			10.0			451.3
Construction Machinery		310.0			330.0			20.0			259.0
High Functional Materials & Components		660.0			700.0			40.0			580.4
Automotive Systems		330.0			350.0			20.0			286.6
Components & Devices		410.0			410.0			0			355.8
Digital Media & Consumer Products		460.0			500.0			40.0			461.3
Financial Services		170.0			180.0			10.0			230.1
Others		370.0			370.0			0			366.4
Eliminations & Corporate items		(590.0	)		(610.0	)		(20.0	)		(585.4	)
Total		4,300.0			4,400.0			100.0			4,124.9

---

Table of Contents

- 3 -

 

(2) Operating Income by Business Segment

 

										(Billions of yen)
		Previous forecast (A)			Revised forecast (B)			((B)-(A))		Fiscal 2009
Information & Telecommunication Systems		29.0			29.0			0		32.3
Power Systems		12.0			12.0			0		3.8
Social Infrastructure & Industrial Systems		4.0			6.0			2.0		(0.9	)
Electronic Systems & Equipment		6.0			10.0			4.0		(13.3	)
Construction Machinery		9.0			11.0			2.0		1.5
High Functional Materials & Components		36.0			47.0			11.0		5.0
Automotive Systems		7.0			8.0			1.0		(17.1	)
Components & Devices		26.0			26.0			0		(13.1	)
Digital Media & Consumer Products		2.0			7.5			5.5		(11.2	)
Financial Services		8.0			9.0			1.0		2.5
Others		8.0			8.0			0		7.3
Eliminations & Corporate items		(22.0	)		(3.5	)		18.5		(21.6	)
Total		125.0			170.0			45.0		(24.7	)

Cautionary Statement

Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.

Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:

 

•

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

 

•

exchange rate fluctuations for the yen and other currencies in which Hitachi makes significant sales 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 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;

---

Table of Contents

- 4 -

 

•

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

 

•

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

 

•

rapid technological innovation;

 

•

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

 

•

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

 

•

fluctuations in product demand and industry capacity;

 

•

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

 

•

uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business;

 

•

uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness and other cost reduction measures;

 

•

general socio-economic and political conditions and the regulatory and trade environment of Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect restrictions by other nations on imports, or differences in commercial and 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 those related to electronics and data processing technologies;

 

•

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

 

•

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

 

•

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

 

•

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

 

•

uncertainty as to the accuracy of key assumptions Hitachi uses to valuate its significant employee benefit related costs; and

 

•

uncertainty as to Hitachi’s ability to attract and retain skilled personnel.

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

About Hitachi, Ltd.

Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company’s website at http://www.hitachi.com.

# # #