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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 November 2011

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-            

 

 

 

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This report on Form 6-K contains the following:

 

1.	Press release dated November 1, 2011 regarding consolidated financial results for the second quarter ended September 30, 2011

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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 November 4, 2011		By		/s/ Toshiaki Kuzuoka
				Toshiaki Kuzuoka
				Senior Vice President and Executive Officer

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FOR IMMEDIATE RELEASE

Hitachi Announces Consolidated Financial Results

for the Second Quarter ended September 30, 2011

Tokyo, November 1, 2011 — Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced its consolidated financial results for the second quarter of fiscal 2011, ended September 30, 2011.

 

Notes:		1.		All figures, except for the outlook for fiscal 2011, were converted at the rate of 77 yen to the U.S. dollar, the approximate exchange rate on the Tokyo Foreign Exchange Market as of September 30, 2011.
		2.		Operating income is presented in accordance with financial reporting principles and practices generally accepted in Japan.

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Summary

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

 

		Three months ended September 30																Six months ended September 30
		Yen (millions)								(B)/(A) X100 (%)				U.S. $ (millions)				Yen (millions)								(D)/(C) X100 (%)				U.S. $ (millions)
		2010 (A)				2011 (B)								2011				2010 (C)				2011 (D)								2011
1. Revenues			2,349,885				2,422,036				103				31,455				4,502,451				4,572,729				102				59,386
2. Operating income			129,573				118,211				91				1,535				218,048				170,614				78				2,216
3. Income before income taxes			119,524				91,856				77				1,193				263,808				133,010				50				1,727
4. Net income			86,969				61,458				71				798				204,437				77,723				38				1,009
5. Net income attributable to Hitachi, Ltd.			71,991				48,018				67				624				158,049				50,949				32				662
6. Net income attributable to Hitachi, Ltd. stockholders per share
Basic			15.94				10.63				67				0.14				35.00				11.28				32				0.15
Diluted			14.88				9.94				67				0.13				32.68				10.55				32				0.14
7. Net income attributable to Hitachi, Ltd. stockholders per ADS (representing 10 shares)
Basic			159				106				67				1.38				350				113				32				1.47
Diluted			149				99				66				1.29				327				106				32				1.38

 

Notes:		1.		The Company’s consolidated financial statements are prepared based on U.S. GAAPs.
		2.		Operating income is presented in accordance with financial reporting principles and practices generally accepted in Japan.
		3.		The figures are for 949 consolidated subsidiaries, including Variable Interest Entities, and 178 equity-method affiliates. Consolidated trust accounts are not included into the figures of consolidated subsidiaries.

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1. Qualitative Information Concerning Consolidated Business Results

(1) Summary of Fiscal 2011 Second-Quarter (Three Months Ended September 30, 2011) and First-Half (Six Months Ended September 30, 2011) Consolidated Business Results

 

		Three months ended September 30, 2011												Six months ended September 30, 2011
		Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)				Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)
Revenues			2,422.0				3	%			31,455				4,572.7				2	%			59,386
Operating income			118.2				(11.3	)			1,535				170.6				(47.4	)			2,216
Income before income taxes			91.8				(27.6	)			1,193				133.0				(130.7	)			1,727
Net Income			61.4				(25.5	)			798				77.7				(126.7	)			1,009
Net Income attributable to Hitachi, Ltd.			48.0				(23.9	)			624				50.9				(107.1	)			662

During the first half of fiscal 2011, the Hitachi Group suffered damage to a large number of buildings and production facilities caused by the Great East Japan Earthquake, which struck on March 11, 2011. However, due to cohesive group-wide efforts to quickly restore operations, production resumed across the board at most sites by the end of April 2011. The Hitachi Group also helped in various ways to support affected areas recover quickly from the disaster, including providing support for the resumption of power, telecommunications, water and sewage, information systems and other infrastructure. At the same time, the Hitachi Group used its products and services to provide support, such as by providing flat-panel TVs, dry-cell batteries, and disaster victim support systems for local authorities free of charge.

Hitachi’s consolidated revenues for the first half of fiscal 2011 rose 2% year over year, to 4,572.7 billion yen, despite most segments being hit hard by the Great East Japan Earthquake. One reason was higher revenues in the Others Segment, resulting from Hitachi Transport System, Ltd. making Vantec Corporation a consolidated subsidiary in April 2011, as well as strong growth in third-party logistics solutions. In addition, the Information & Telecommunication Systems Segment saw strong revenue growth, notably in storage solutions for overseas customers, and the Construction Machinery Segment produced higher revenues year over year, mainly in emerging countries.

Overseas revenues increased 1% year over year, to 2,000.3 billion yen.

Hitachi posted operating income of 170.6 billion yen, down 47.4 billion yen from the first half of fiscal 2010, even though the Automotive Systems, Construction Machinery, and Electronic Systems & Equipment segments posted higher year over year earnings. This reflected the large impact of the Great East Japan Earthquake and strong yen, which caused lower earnings in the Components & Devices, High Functional Materials & Components, and Power Systems segments, and others.

Hitachi posted net other deductions of 37.6 billion yen, 83.3 billion yen worse than the net other income in the corresponding period of the previous fiscal year. The year over year change was attributable to gains on the sale of securities recorded in the first half of fiscal 2010 resulting from the transfer of shares of IPS Alpha Technology, Ltd. to Panasonic Corporation, while there were no large sales of shares in the first half of fiscal 2011. Hitachi recorded income before income taxes of 133.0 billion yen, 130.7 billion yen less year over year. After taxes of 55.2 billion yen, Hitachi posted net income of 77.7 billion yen, a year over year decline of 126.7 billion yen. After deducting net income attributable to noncontrolling interests of 26.7 billion yen, Hitachi posted net income attributable to Hitachi, Ltd. of 50.9 billion yen, down 107.1 billion yen.

For the second quarter of fiscal 2011, the three months ended September 30, 2011, consolidated revenues were up 3% year over year, at 2,422.0 billion yen. Operating income declined 11.3 billion yen year over year, to 118.2 billion yen, despite all business segments recording profits. Hitachi recorded net income attributable to Hitachi, Ltd. of 48.0 billion yen, a 23.9 billion yen decline year over year.

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(2) Revenues and Operating Income by Segment

Results by segment were as follows:

[Information & Telecommunication Systems]

 

		Three months ended September 30, 2011												Six months ended September 30, 2011
		Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)				Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)
Revenues			446.2				5	%			5,795				797.0				3	%			10,351
Operating income			28.9				(5.4	)			376				31.0				(3.5	)			403

For the first half of fiscal 2011, the segment recorded revenues of 797.0 billion yen, an increase of 3% year over year. The higher overall revenues resulted from increased sales of software and services for storage, mainly for overseas customers, which lifted software and services revenues year over year.

Segment operating income declined 3.5 billion yen year over year to 31.0 billion yen, due to the impact of the Great East Japan Earthquake and other factors.

For the second quarter of fiscal 2011, the segment recorded revenues of 446.2 billion yen, up 5% year over year. Segment operating income was 28.9 billion yen, down 5.4 billion yen year over year.

[Power Systems]

 

		Three months ended September 30, 2011												Six months ended September 30, 2011
		Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)				Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)
Revenues			206.1				0	%			2,677				372.4				(3	%)			4,837
Operating income			3.8				(5.8	)			50				0.6				(13.7	)			8

For the first half of fiscal 2011, segment revenues dropped 3% year over year, to 372.4 billion yen. This primarily reflected lower sales of nuclear power generation systems in the aftermath of the Great East Japan Earthquake. However, sales of thermal power generation systems were healthy in Japan.

The segment recorded operating income of 0.6 billion yen, down 13.7 billion yen year over year, reflecting the impact of the Great East Japan Earthquake and lower revenues.

For the second quarter of fiscal 2011, the segment recorded revenues of 206.1 billion yen, which was largely unchanged year over year. Segment operating income was 3.8 billion yen, down 5.8 billion yen year over year.

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[Social Infrastructure & Industrial Systems]

 

		Three months ended September 30, 2011												Six months ended September 30, 2011
		Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)				Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)
Revenues			283.7				2	%			3,684				513.5				1	%			6,669
Operating income			5.3				(2.8	)			70				6.3				(4.4	)			82

For the first half of fiscal 2011, the segment recorded revenues of 513.5 billion yen, a 1% increase year over year, despite lower sales of plant-related equipment and construction. The year over year increase reflected higher sales of railway systems, mainly for overseas markets, and strong sales of industrial equipment for the manufacturing industry.

The segment posted operating income of 6.3 billion yen, down 4.4 billion yen year over year, on account of lower sales of plant-related equipment and construction.

For the second quarter of fiscal 2011, revenues rose 2% year over year, to 283.7 billion yen. Operating income declined 2.8 billion yen year over year to 5.3 billion yen.

[Electronic Systems & Equipment]

 

		Three months ended September 30, 2011												Six months ended September 30, 2011
		Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)				Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)
Revenues			287.4				3	%			3,733				533.5				1	%			6,930
Operating income			14.1				3.2				184				21.3				5.0				277

For the first half of fiscal 2011, the segment recorded revenues of 533.5 billion yen, a 1% increase year over year, despite lower sales in the display-related products and parts and components sales businesses at Hitachi High-Technologies Corporation. The higher segment revenues reflected mainly the consolidation of Aloka Co., Ltd. in January 2011 by Hitachi Medical Corporation.

Segment operating income improved 5.0 billion yen year over year, to 21.3 billion yen, reflecting higher earnings at Hitachi Kokusai Electric Inc. and Hitachi Koki Co., Ltd., mainly due to progress with cost cutting programs.

For the second quarter of fiscal 2011, segment revenues rose 3%, to 287.4 billion yen. Operating income improved 3.2 billion yen year over year, to 14.1 billion yen.

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[Construction Machinery]

 

		Three months ended September 30, 2011												Six months ended September 30, 2011
		Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)				Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)
Revenues			183.3				6	%			2,381				355.8				6	%			4,622
Operating income			14.8				3.5				192				25.8				7.6				336

For the first half of fiscal 2011, the segment recorded revenues of 355.8 billion yen, up 6% year over year, despite lower demand in China for hydraulic excavators and the impact of the yen’s appreciation. The overall increase reflected higher unit sales of hydraulic excavators, driven by strong demand in emerging countries in Asia and elsewhere, and in the Japanese and U.S. markets, notably the rental industry.

Segment operating income improved 7.6 billion yen, to 25.8 billion yen, due to higher sales of services and parts and components, centered on mining machinery, and due to cost cutting.

For the second quarter of fiscal 2011, segment revenues rose 6% year over year, to 183.3 billion yen. Operating income improved 3.5 billion yen, to 14.8 billion yen.

[High Functional Materials & Components]

 

		Three months ended September 30, 2011												Six months ended September 30, 2011
		Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)				Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)
Revenues			353.5				0	%			4,592				700.6				0	%			9,099
Operating income			14.4				(9.5	)			188				33.8				(16.4	)			439

For the first half of fiscal 2011, the segment recorded revenues of 700.6 billion yen, largely unchanged from the corresponding period of the previous fiscal year. Sales declined at Hitachi Chemical Co., Ltd. due to lower semiconductor- and LCD-related demand, as well as lower automobile production because of the Great East Japan Earthquake. On the other hand, Hitachi Metals, Ltd. and Hitachi Cable, Ltd. recorded higher sales year over year.

Segment operating income declined 16.4 billion yen, to 33.8 billion yen. This reflected year over year declines in earnings at Hitachi Chemical, Hitachi Metals and Hitachi Cable because of the impact of the Great East Japan Earthquake, along with lower sales stemming from lower electronics-related demand, including semiconductor- and LCD-related demand.

For the second quarter of fiscal 2011, revenues were largely flat year over year at 353.5 billion yen. Segment operating income declined 9.5 billion yen to 14.4 billion yen.

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[Automotive Systems]

 

		Three months ended September 30, 2011												Six months ended September 30, 2011
		Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)				Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)
Revenues			210.9				6	%			2,739				388.1				2	%			5,040
Operating income			12.6				8.9				164				14.7				9.0				191

For the first half of fiscal 2011, the segment recorded revenues of 388.1 billion yen, up 2% year over year, despite the impact of a drop in automobile production in Japan after the Great East Japan Earthquake at the beginning of the fiscal year. This increase primarily reflected increased demand in step with a recovery in automobile production in Japan in the second quarter, and strong growth in sales of lithium-ion batteries for smartphones.

Segment operating income improved 9.0 billion yen to 14.7 billion yen, reflecting mainly the benefits of cost reductions.

For the second quarter of fiscal 2011, segment revenues increased 6%, to 210.9 billion yen. Operating income improved 8.9 billion yen to 12.6 billion yen.

 

Note:

Effective from April 1, 2011, there was a change in segmentation between the Automotive Systems and the Components & Devices segments. Figures for each segment, including figures for the first half of fiscal 2010, reflect the new segmentations.

[Components & Devices]

 

		Three months ended September 30, 2011												Six months ended September 30, 2011
		Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)				Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)
Revenues			189.6				(6	%)			2,463				367.4				(7	%)			4,772
Operating income			7.6				(8.8	)			99				12.6				(22.9	)			164

For the first half of fiscal 2011, the segment recorded revenues of 367.4 billion yen, down 7% year over year, as HDD operations posted lower sales due to lower sales prices.

Segment operating income dropped 22.9 billion yen, to 12.6 billion yen, on account of lower HDD earnings resulting from decreased sales.

For the second quarter of fiscal 2011, segment revenues declined 6%, to 189.6 billion yen. Operating income declined 8.8 billion yen to 7.6 billion yen.

 

Notes		1:		Effective from April 1, 2011, there was a change in segmentation between the Automotive Systems and the Components & Devices segments. Figures for each segment, including figures for the first half of fiscal 2010, reflect the new segmentations.
		2:		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 six months ended September 30, 2011 include operating results of Hitachi GST for the six months ended June 30, 2011.

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[Digital Media & Consumer Products]

 

		Three months ended September 30, 2011												Six months ended September 30, 2011
		Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)				Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)
Revenues			238.2				(5	%)			3,094				471.3				(7	%)			6,121
Operating income			1.9				(1.9	)			25				5.2				(5.7	)			68

For the first half of fiscal 2011, the segment recorded revenues of 471.3 billion yen, down 7% year over year. Optical disk drive-related products recorded lower sales year over year, which was the result of parts and components shortages after the Great East Japan Earthquake and the yen’s appreciation. Another factor was lower year over year sales of flat-panel TVs due to lower sales prices and other factors. However, commercially packaged air conditioners posted higher sales, mainly in Japan, spurred by demand for upgrading to energy-saving models.

Segment operating income declined 5.7 billion yen to 5.2 billion yen, reflecting decreased earnings from optical disk drive-related products and flat-panel TVs in line with lower sales.

For the second quarter of fiscal 2011, segment revenues declined 5% year over year, to 238.2 billion yen. Operating income declined 1.9 billion yen year over year, to 1.9 billion yen.

 

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 six months ended September 30, 2011 include operating results of HLDS for the six months ended June 30, 2011.

[Financial Services]

 

		Three months ended September 30, 2011												Six months ended September 30, 2011
		Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)				Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)
Revenues			88.9				(4	%)			1,155				181.4				(3	%)			2,356
Operating income			7.2				1.1				94				14.1				2.9				184

For the first half of fiscal 2011, the segment recorded revenues of 181.4 billion yen, down 3% year over year. This overall decline reflected lower revenues in the finance services business in Japan at Hitachi Capital Corporation in the aftermath of the Great East Japan Earthquake as well as the impact of foreign currency fluctuations. However, the overseas business and certain other businesses at Hitachi Capital produced strong performances, mainly in Asia.

Segment operating income improved 2.9 billion yen, to 14.1 billion yen, reflecting higher earnings at Hitachi Capital because of increased revenues from the overseas and new businesses, and reduced financing and credit costs.

For the second quarter of fiscal 2011, segment revenues declined 4% year over year, to 88.9 billion yen. Operating income improved 1.1 billion yen to 7.2 billion yen.

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[Others]

 

		Three months ended September 30, 2011												Six months ended September 30, 2011
		Yen (billions)				Year over  year change % or billion yen				U.S.  dollars (millions)				Yen (billions)				Year over year change % or billion yen				U.S.  dollars (millions)
Revenues			240.8				23	%			3,128				467.8				25	%			6,076
Operating income			10.5				3.7				137				16.3				3.5				212

For the first half of fiscal 2011, the segment recorded revenues of 467.8 billion yen, up 25% year over year, on healthy growth in sales in third-party logistics solutions, in addition to the effect of Hitachi Transport System, Ltd. making Vantec Corporation a consolidated subsidiary in April 2011.

Segment operating income improved 3.5 billion yen, to 16.3 billion yen. This reflected higher earnings on higher revenues at Hitachi Transport System.

For the second quarter of fiscal 2011, segment revenues increased 23% year over year to 240.8 billion yen. Operating income improved 3.7 billion yen, to 10.5 billion yen.

(3) Revenues by Market

 

		Three months ended September 30, 2011												Six months ended September 30, 2011
		Yen (billions)				Year over year %  change				U.S.  dollars (millions)				Yen (billions)				Year over year % change				U.S.  dollars (millions)
Japan			1,395.2				3	%			18,120				2,572.4				2	%			33,408
Outside Japan			1,026.7				3	%			13,335				2,000.3				1	%			25,978
Asia			512.3				(1	%)			6,654				1,003.2				(2	%)			13,029
North America			198.0				6	%			2,572				392.1				3	%			5,092
Europe			189.8				8	%			2,466				374.4				3	%			4,863
Other Areas			126.4				8	%			1,642				230.5				9	%			2,994

For the first half of fiscal 2011, revenues in Japan were 2,572.4 billion yen, up 2% year over year. The Others Segment posted higher revenues at Hitachi Transport System, Ltd. due to the consolidation of Vantec Corporation and strong sales growth in third-party logistics solutions, and others. However, the Components & Devices, and Electronic Systems & Equipment segments saw revenues decline.

Outside Japan revenues increased 1% year over year, to 2,000.3 billion yen. The consolidation of Vantec at Hitachi Transport System led to higher revenues in the Others Segment, and the Electronic Systems & Equipment and Information & Telecommunication Systems segments posted higher revenues. However, revenues declined in the Digital Media & Consumer Products and Power Systems segments.

As a result, the ratio of overseas revenues to consolidated revenues was 44%, flat year over year.

For the second quarter of fiscal 2011, revenues in Japan rose 3% year over year, to 1,395.2 billion yen. Overseas revenues increased 3%, to 1,026.7 billion yen.

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

Capital investment on a completion basis, excluding leasing assets, increased 29% year over year, to 154.6 billion yen, primarily due to investments for stepping up global business development.

Depreciation, excluding leasing assets, decreased 12% year over year, to 132.2 billion yen, primarily due to strict selection of capital investments.

R&D expenditures increased 2% year over year, to 199.1 billion yen, which corresponded to 4.4% of consolidated revenues. The increase was due mainly to further R&D investment to strengthen the Social Innovation Business.

For the second quarter of fiscal 2011, capital investment on a completion basis, excluding leasing assets, increased 29%, to 94.8 billion yen. Depreciation, excluding leasing assets, decreased 14%, to 65.0 billion yen. R&D expenditures increased 3%, to 105.0 billion yen, and corresponded to 4.3% of consolidated revenues.

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2. Financial Position

(1) Financial Position

 

		As of September 30, 2011
		Yen (billions)				Change from March 31, 2011				U.S.  dollars (millions)
Total assets			9,199.1				13.5				119,469
Total liabilities			6,752.5				8.2				87,695
Interest-bearing debt			2,641.1				119.5				34,300
Total Hitachi, Ltd. stockholders’ equity			1,450.5				10.6				18,838
Noncontrolling interests			996.0				(5.4	)			12,936
Total Hitachi, Ltd. stockholders’ equity ratio			15.8	%			0.1 point improvement				—
D/E ratio (including noncontrolling interests)			1.08 times				0.05 point increase				—

Total assets as of September 30, 2011 increased 13.5 billion yen from March 31, 2011, to 9,199.1 billion yen, due mainly to the consolidation of Vantec Corporation by Hitachi Transport System, Ltd. Interest-bearing debt increased 119.5 billion yen, to 2,641.1 billion yen, because of an increase in short-term debt, mainly in the form of commercial paper, to provide additional working capital. Stockholders’ equity increased 10.6 billion yen, to 1,450.5 billion yen. As a result, the total Hitachi, Ltd. stockholders’ equity ratio was 15.8%. The debt-to-equity ratio, including noncontrolling interests, was 1.08.

(2) Cash Flows

 

		Six months ended September 30, 2011
		Yen (billions)				Year over  year change				U.S.  dollars (millions)
Cash flows from operating activities			93.1				(284.4	)			1,209
Cash flows from investing activities			(221.7	)			(116.1	)			(2,880	)
Free cash flows			(128.6	)			(400.5	)			(1,671	)
Cash flows from financing activities			104.0				297.9				1,351

Operating activities provided net cash of 93.1 billion yen, a 284.4 billion yen decrease year over year. This result is mainly reflecting decrease in net income and an increase in working capital.

Investing activities used net cash of 221.7 billion yen, 116.1 billion yen more than in the corresponding period of the previous fiscal year. This result mainly reflected outflows for the acquisition of BlueArc Corporation and Vantec Corporation.

Free cash flows, the sum of cash flows from operating and investing activities, was negative 128.6 billion yen.

Financing activities provided net cash of 104.0 billion yen, a change of 297.9 billion yen from the net cash used in the corresponding period of the previous fiscal year. This change mainly reflected the increase in short-term debt mainly from the issue of commercial paper.

The net result of the above items was a decrease of 44.1 billion yen in cash and cash equivalents during the six-month period, to 510.6 billion yen.

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3. Outlook for Fiscal 2011

 

		Year ending March 31, 2012
		Yen (billions)				Year over  year change (% or billions yen)				U.S.  dollars (millions)
Revenues			9,500.0				2	%			126,667
Operating income			400.0				(44.5	)			5,333
Income before income taxes			410.0				(22.2	)			5,467
Net Income			280.0				(23.1	)			3,733
Net Income attributable to Hitachi, Ltd.			200.0				(38.8	)			2,667

 

Note:

All fiscal 2011 outlook figures were converted using 75 yen to the U.S. dollar.

Hitachi has not revised its previous forecasts for fiscal 2011 announced on July 29, 2011 because of considerable uncertainty surrounding trends in the global economy, especially in the U.S., Europe and China, the impact of damage from flooding in Thailand, foreign currency fluctuations, and fluctuations in raw materials prices.

Hitachi is assuming exchange rates of 75 yen to the U.S. dollar and 105 yen to the euro for the third and fourth quarters of fiscal 2011.

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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

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 investment in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the major industrial sectors Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors;

 

•

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

 

•

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

 

•

uncertainty as to general market price levels for equity securities 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 technologies on a timely and cost-effective basis and to achieve market acceptance for such products;

 

•

rapid technological innovation;

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•

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

 

•

fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, 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 of fluctuations in product demand, exchange rates and/or price of raw materials or shortages of materials, parts and components;

 

•

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

 

•

uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness 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 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, 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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Consolidated Statements of Operations

 

		Three months ended September 30																Six months ended September 30
		Yen (millions)								(B)/(A) X100 (%)				U.S. $ (millions)				Yen (millions)								(D)/(C) X100 (%)				U.S. $ (millions)
		2010 (A)				2011 (B)								2011				2010 (C)				2011 (D)								2011
Revenues			2,349,885				2,422,036				103				31,455				4,502,451				4,572,729				102				59,386
Cost of sales			1,739,367				1,809,418				104				23,499				3,333,831				3,435,428				103				44,616
Selling, general and administrative expenses			480,945				494,407				103				6,421				950,572				966,687				102				12,554
Operating income			129,573				118,211				91				1,535				218,048				170,614				78				2,216
Other income			7,674				4,832				63				63				85,011				17,770				21				231
(Interest and dividends)			3,712				4,366				118				57				9,093				11,274				124				146
(Other)			3,962				466				12				6				75,918				6,496				9				84
Other deductions			17,723				31,187				176				405				39,251				55,374				141				719
(Interest charges)			6,121				6,975				114				91				12,427				14,008				113				182
(Other)			11,602				24,212				209				314				26,824				41,366				154				537
Income before income taxes			119,524				91,856				77				1,193				263,808				133,010				50				1,727
Income taxes			32,555				30,398				93				395				59,371				55,287				93				718
Net income			86,969				61,458				71				798				204,437				77,723				38				1,009
Less: Net income attributable to noncontrolling interests			14,978				13,440				90				175				46,388				26,774				58				348
Net income attributable to Hitachi, Ltd.			71,991				48,018				67				624				158,049				50,949				32				662

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Consolidated Balance Sheets

 

		Yen (millions)												U.S. Dollars (millions)
		As of March 31, 2011 (A)				As of September 30, 2011 (B)				(B)-(A)				As of September 30, 2011
Total Assets			9,185,629				9,199,139				13,510				119,469
Current assets			4,900,029				4,951,497				51,468				64,305
Cash and cash equivalents			554,810				510,643				(44,167	)			6,632
Short-term investments			16,598				10,611				(5,987	)			138
Trade receivables
Notes			100,694				101,534				840				1,319
Accounts			1,990,225				1,969,230				(20,995	)			25,574
Investments in leases			228,346				221,419				(6,927	)			2,876
Current portion of financial assets transferred to consolidated securitization entities			183,559				107,927				(75,632	)			1,402
Inventories			1,341,768				1,520,854				179,086				19,751
Other current assets			484,029				509,279				25,250				6,614
Investments and advances			614,145				576,007				(38,138	)			7,481
Property, plant and equipment			2,111,270				2,132,117				20,847				27,690
Intangible assets			528,018				594,067				66,049				7,715
Financial assets transferred to consolidated securitization entities			304,160				250,671				(53,489	)			3,255
Other assets			728,007				694,780				(33,227	)			9,023
Total Liabilities and Equity			9,185,629				9,199,139				13,510				119,469
Current liabilities			4,088,824				4,218,516				129,692				54,786
Short-term debt and current portion of long-term debt			810,806				1,056,419				245,613				13,720
Current portion of non-recourse borrowings of consolidated securitization entities			190,868				136,663				(54,205	)			1,775
Trade payables
Notes			20,430				19,084				(1,346	)			248
Accounts			1,236,758				1,245,310				8,552				16,173
Advances received			395,605				382,750				(12,855	)			4,971
Other current liabilities			1,434,357				1,378,290				(56,067	)			17,900
Noncurrent liabilities			2,655,416				2,533,988				(121,428	)			32,909
Long-term debt			1,300,311				1,278,889				(21,422	)			16,609
Non-recourse borrowings of consolidated securitization entities			219,566				169,132				(50,434	)			2,197
Retirement and severance benefits			891,815				855,393				(36,422	)			11,109
Other liabilities			243,724				230,574				(13,150	)			2,994
Total equity			2,441,389				2,446,635				5,246				31,774
Total Hitachi, Ltd. stockholders’ equity			1,439,865				1,450,558				10,693				18,838
Common stock			409,129				409,131				2				5,313
Capital surplus			603,133				602,154				(979	)			7,820
Legal reserve and retained earnings			922,036				959,432				37,396				12,460
Accumulated other comprehensive loss			(493,062	)			(518,746	)			(25,684	)			(6,737	)
(Foreign currency translation adjustments)			(252,206	)			(292,154	)			(39,948	)			(3,794	)
(Pension liability adjustments)			(256,566	)			(230,429	)			26,137				(2,993	)
(Net unrealized holding gain on available-for-sale securities)			16,905				4,981				(11,924	)			65
(Cash flow hedges)			(1,195	)			(1,144	)			51				(15	)
Treasury stock			(1,371	)			(1,413	)			(42	)			(18	)
Noncontrolling interests			1,001,524				996,077				(5,447	)			12,936

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Consolidated Statements of Cash Flows

 

		Six months ended September 30
		Yen (millions)								U.S. Dollars (millions)
		2010				2011				2011
Cash flows from operating activities
Net income			204,437				77,723				1,009
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation			189,850				172,221				2,237
Amortization			56,503				56,841				738
Gain on sale of investments in securities and other			(73,414	)			(740	)			(10	)
Decrease in receivables			209,121				29,398				382
Increase in inventories			(182,760	)			(227,670	)			(2,957	)
Decrease (increase) in payables			(16,091	)			32,719				425
Other			(10,114	)			(47,364	)			(615	)
Net cash provided by operating activities			377,532				93,128				1,209
Cash flows from investing activities
Purchase of property, plant and equipment, net			(99,103	)			(124,490	)			(1,617	)
Purchase of intangible assets, net			(46,436	)			(48,531	)			(630	)
Purchase of tangible assets and software to be leased, net			(129,717	)			(116,825	)			(1,517	)
Proceeds from sale (purchase) of investments in securities and shares of consolidated subsidiaries resulting in deconsolidation, net			38,508				(74,724	)			(970	)
Collection of investments in leases			151,205				139,704				1,814
Other			(20,097	)			3,105				40
Net cash used in investing activities			(105,640	)			(221,761	)			(2,880	)
Cash flows from financing activities
Increase (decrease) in interest-bearing debt			(177,677	)			130,595				1,696
Dividends paid to stockholders			(12	)			(13,505	)			(175	)
Dividends paid to noncontrolling interests			(10,440	)			(11,688	)			(152	)
Other			(5,768	)			(1,375	)			(18	)
Net cash provided by (used in) financing activities			(193,897	)			104,027				1,351
Effect of consolidation of securitization entities upon initial adoption of new accounting guidances			12,030				—				—
Effect of exchange rate changes on cash and cash equivalents			(33,792	)			(19,561	)			(254	)
Net increase (decrease) in cash and cash equivalents			56,233				(44,167	)			(574	)
Cash and cash equivalents at beginning of the period			577,584				554,810				7,205
Cash and cash equivalents at end of the period			633,817				510,643				6,632

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Segment Information

(1) Business Segments

 

		Three months ended September 30																Six months ended September 30
		Yen (millions)								(B)/(A) X100 (%)				U.S. $ (millions)				Yen (millions)								(D)/(C) X100 (%)				U.S. $ (millions)
		2010 (A)				2011 (B)								2011				2010 (C)				2011 (D)								2011
Information & Telecommunication Systems			425,840				446,250				105				5,795				774,816				797,046				103				10,351
			16	%			16	%											15	%			15	%
Power Systems			206,995				206,105				100				2,677				384,813				372,454				97				4,837
			8	%			8	%											8	%			7	%
Social Infrastructure & Industrial Systems			277,304				283,701				102				3,684				508,910				513,531				101				6,669
			10	%			10	%											10	%			10	%
Electronic Systems & Equipment			278,771				287,462				103				3,733				529,041				533,590				101				6,930
			11	%			10	%											10	%			10	%
Construction Machinery			172,375				183,375				106				2,381				334,401				355,890				106				4,622
			7	%			7	%											7	%			7	%
High Functional Materials & Components			354,962				353,569				100				4,592				700,483				700,644				100				9,099
			13	%			13	%											14	%			14	%
Automotive Systems			198,523				210,911				106				2,739				382,337				388,109				102				5,040
			7	%			8	%											7	%			8	%
Components & Devices			202,633				189,658				94				2,463				395,976				367,423				93				4,772
			8	%			7	%											8	%			7	%
Digital Media & Consumer Products			250,221				238,208				95				3,094				506,914				471,343				93				6,121
			9	%			9	%											10	%			9	%
Financial Services			92,417				88,935				96				1,155				186,652				181,411				97				2,356
			4	%			3	%											4	%			4	%
Others			195,352				240,879				123				3,128				375,273				467,833				125				6,076
			7	%			9	%											7	%			9	%
Subtotal			2,655,393				2,729,053				103				35,442				5,079,616				5,149,274				101				66,874
			100	%			100	%											100	%			100	%
Eliminations & Corporate items			(305,508	)			(307,017	)			—				(3,987	)			(577,165	)			(576,545	)			—				(7,488	)
Revenues Total			2,349,885				2,422,036				103				31,455				4,502,451				4,572,729				102				59,386

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		Three months ended September 30																Six months ended September 30
		Yen (millions)								(B)/(A) X100 (%)				U.S. $ (millions)				Yen (millions)								(D)/(C) X100 (%)				U.S. $ (millions)
		2010 (A)				2011 (B)								2011				2010 (C)				2011 (D)								2011
Information & Telecommunication Systems			34,372				28,945				84				376				34,556				31,047				90				403
			25	%			24	%											16	%			17	%
Power Systems			9,673				3,830				40				50				14,312				605				4				8
			7	%			3	%											6	%			0	%
Social Infrastructure & Industrial Systems			8,226				5,353				65				70				10,754				6,322				59				82
			6	%			4	%											5	%			3	%
Electronic Systems & Equipment			10,890				14,146				130				184				16,281				21,342				131				277
			8	%			12	%											7	%			12	%
Construction Machinery			11,291				14,804				131				192				18,231				25,841				142				336
			8	%			12	%											8	%			14	%
High Functional Materials & Components			24,046				14,456				60				188				50,254				33,814				67				439
			18	%			12	%											23	%			19	%
Automotive Systems			3,672				12,638				344				164				5,625				14,705				261				191
			3	%			10	%											3	%			8	%
Components & Devices			16,482				7,643				46				99				35,585				12,616				35				164
			12	%			6	%											16	%			7	%
Digital Media & Consumer Products			3,860				1,913				50				25				10,974				5,201				47				68
			3	%			2	%											5	%			3	%
Financial Services			6,116				7,270				119				94				11,269				14,172				126				184
			5	%			6	%											5	%			8	%
Others			6,836				10,561				154				137				12,838				16,353				127				212
			5	%			9	%											6	%			9	%
Subtotal			135,464				121,559				90				1,579				220,679				182,018				82				2,364
			100	%			100	%											100	%			100	%
Eliminations & Corporate items			(5,891	)			(3,348	)			—				(43	)			(2,631	)			(11,404	)			—				(148	)
Operating income Total			129,573				118,211				91				1,535				218,048				170,614				78				2,216

 

Notes		1:		Revenues by business segment include intersegment transactions.
		2:		Starting from April 1, 2011, the Company has changed the business segment classification between the Automotive Systems Segment and the Components & Devices Segment. Figures of business segments, including the figures of previous fiscal year, have been restated to reflect the reclassification.

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(2) Revenues by Market

 

		Three months ended September 30																Six months ended September 30
		Yen (millions)								(B)/(A) X100 (%)				U.S. $ (millions)				Yen (millions)								(D)/(C) X100 (%)				U.S. $ (millions)
		2010 (A)				2011 (B)								2011				2010 (C)				2011 (D)								2011
Japan			1,350,339 57	%			1,395,259 58	%			103				18,120				2,523,563 56	%			2,572,415 56	%			102				33,408
Asia			519,639 22	%			512,395 21	%			99				6,654				1,022,613 23	%			1,003,234 22	%			98				13,029
North America			187,535 8	%			198,022 8	%			106				2,572				380,552 8	%			392,103 9	%			103				5,092
Europe			175,607 8	%			189,889 8	%			108				2,466				363,252 8	%			374,426 8	%			103				4,863
Other Areas			116,765 5	%			126,471 5	%			108				1,642				212,471 5	%			230,551 5	%			109				2,994
Outside Japan			999,546 43	%			1,026,777 42	%			103				13,335				1,978,888 44	%			2,000,314 44	%			101				25,978
Total			2,349,885 100	%			2,422,036 100	%			103				31,455				4,502,451 100	%			4,572,729 100	%			102				59,386

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November 1, 2011

Hitachi, Ltd.

Supplementary Information for the Second Quarter ended September 30, 2011

1. Summary (Consolidated basis)

 

		2010								2011
		Three months ended September 30				Six months ended September 30				Three months ended September 30								Six months ended September 30								Total (Forecast)*1
		(A)				(B)				(C)				(C)/(A)				(D)				(D)/(B)				(E)				(E)/FY2010
Revenues*2			2,349.8				4,502.4				2,422.0				103	%			4,572.7				102	%			9,500.0				102	%
Operating income*2			129.5				218.0				118.2				91	%			170.6				78	%			400.0				90	%
Percentage of revenues			5.5				4.8				4.9				—				3.7				—				4.2				—
Income before income taxes*2			119.5				263.8				91.8				77	%			133.0				50	%			410.0				95	%
Net income*2			86.9				204.4				61.4				71	%			77.7				38	%			280.0				92	%
Net income attributable to Hitachi, Ltd.*2			71.9				158.0				48.0				67	%			50.9				32	%			200.0				84	%
Dividend payout ratio (%)			—				14.3				—				—				26.6				—				—				—
Average exchange rate (yen / U.S.$)			86				89				78				—				80				—				—				—
Net interest and dividends*2			(2.4	)			(3.3	)			(2.6	)			—				(2.7	)			—				—				—

 

*1

Hitachi expects to close the transaction to transfer Hitachi’s hard disk drive business to Western Digital Corporation in the quarter ending December 2011. 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. Business forecasts for fiscal 2011, ending March 31, 2012 include the operating results of Hitachi GST for the nine months ending September 30, 2011.

*2	Billions of yen

Assumed exchange rate for 2nd half of fiscal 2011 (yen / U.S.$):                75                

 

		As of March 31, 2011				As of September 30, 2011
Cash and cash equivalents, Short-term investments (billions of yen)			571.4				521.2
Interest-bearing debt (billions of yen)			2,521.5				2,641.1
D/E Ratio (Including Noncontrolling interests) (times)			1.03				1.08
Number of employees			361,745				372,360
Japan			216,393				221,237
Overseas			145,352				151,123
Number of consolidated subsidiaries (Including Variable interest entities)			913				949
Japan			351				351
Overseas			562				598

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2. Consolidated Revenues by Business Segment^*3

 

										(Billions of yen)
		2010								2011
		Three months ended September 30				Six months ended September 30				Three months ended September 30								Six months ended September 30								Total (Forecast)
		(A)				(B)				(C)				(C)/(A)				(D)				(D)/(B)				(E)				(E)/FY2010
Information & Telecommunication Systems			425.8				774.8				446.2				105	%			797.0				103	%			1,700.0				103	%
Power Systems			206.9				384.8				206.1				100	%			372.4				97	%			810.0				100	%
Social Infrastructure & Industrial Systems			277.3				508.9				283.7				102	%			513.5				101	%			1,170.0				101	%
Electronic Systems & Equipment			278.7				529.0				287.4				103	%			533.5				101	%			1,110.0				103	%
Construction Machinery			172.3				334.4				183.3				106	%			355.8				106	%			830.0				110	%
High Functional Materials & Components			354.9				700.4				353.5				100	%			700.6				100	%			1,460.0				104	%
Automotive Systems			198.5				382.3				210.9				106	%			388.1				102	%			810.0				105	%
Components & Devices			202.6				395.9				189.6				94	%			367.4				93	%			630.0				82	%
Digital Media & Consumer Products			250.2				506.9				238.2				95	%			471.3				93	%			900.0				95	%
Financial Services			92.4				186.6				88.9				96	%			181.4				97	%			360.0				97	%
Others			195.3				375.2				240.8				123	%			467.8				125	%			930.0				121	%
Subtotal			2,655.3				5,079.6				2,729.0				103	%			5,149.2				101	%			10,710.0				102	%
Eliminations & Corporate items			(305.5	)			(577.1	)			(307.0	)			—				(576.5	)			—				(1,210.0	)			—
Total			2,349.8				4,502.4				2,422.0				103	%			4,572.7				102	%			9,500.0				102	%

 

*3

Starting from April 1, 2011, the Company has changed the business segment classification between the Automotive Systems Segment and the Components & Devices Segment. Consolidated figures by business segment, including the figures of previous fiscal year, have been restated to reflect the reclassification.

3. Consolidated Operating Income by Business Segment^*3

 

										(Billions of yen)
		2010								2011
		Three months ended September 30				Six months ended September 30				Three months ended September 30								Six months ended September 30								Total (Forecast)
		(A)				(B)				(C)				(C)/(A)				(D)				(D)/(B)				(E)				(E)/FY2010
Information & Telecommunication Systems			34.3				34.5				28.9				84	%			31.0				90	%			110.0				112	%
Power Systems			9.6				14.3				3.8				40	%			0.6				4	%			10.0				45	%
Social Infrastructure & Industrial Systems			8.2				10.7				5.3				65	%			6.3				59	%			46.0				115	%
Electronic Systems & Equipment			10.8				16.2				14.1				130	%			21.3				131	%			48.0				129	%
Construction Machinery			11.2				18.2				14.8				131	%			25.8				142	%			64.0				130	%
High Functional Materials & Components			24.0				50.2				14.4				60	%			33.8				67	%			74.0				88	%
Automotive Systems			3.6				5.6				12.6				344	%			14.7				261	%			26.0				141	%
Components & Devices			16.4				35.5				7.6				46	%			12.6				35	%			29.0				53	%
Digital Media & Consumer Products			3.8				10.9				1.9				50	%			5.2				47	%			5.0				33	%
Financial Services			6.1				11.2				7.2				119	%			14.1				126	%			25.0				175	%
Others			6.8				12.8				10.5				154	%			16.3				127	%			29.0				100	%
Subtotal			135.4				220.6				121.5				90	%			182.0				82	%			466.0				101	%
Eliminations & Corporate items			(5.8	)			(2.6	)			(3.3	)			—				(11.4	)			—				(66.0	)			—
Total			129.5				218.0				118.2				91	%			170.6				78	%			400.0				90	%

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4. Consolidated Overseas Revenues by Business Segment^*3

 

		(Billions of yen)
		2010								2011
		Three months ended September 30				Six months ended September 30				Three months ended September 30								Six months ended September 30								Total (Forecast)
		(A)				(B)				(C)				(C)/(A)				(D)				(D)/(B)				(E)				(E)/FY2010
Information & Telecommunication Systems			89.5				183.0				102.0				114	%			199.0				109	%
Power Systems			79.7				154.4				74.4				93	%			136.1				88	%
Social Infrastructure & Industrial Systems			67.2				123.1				74.0				110	%			134.4				109	%
Electronic Systems & Equipment			143.8				281.0				163.6				114	%			309.2				110	%
Construction Machinery			129.5				258.9				132.7				102	%			269.6				104	%
High Functional Materials & Components			134.5				269.5				131.5				98	%			268.9				100	%
Automotive Systems			84.0				166.8				89.2				106	%			176.0				106	%
Components & Devices			148.3				290.5				151.0				102	%			290.5				100	%
Digital Media & Consumer Products			120.4				244.4				105.7				88	%			204.6				84	%
Financial Services			11.5				23.3				12.2				106	%			24.6				106	%
Others			25.5				47.7				31.2				123	%			65.7				138	%
Subtotal			1,034.4				2,043.1				1,068.2				103	%			2,079.0				102	%
Eliminations & Corporate items			(34.8	)			(64.2	)			(41.4	)			—				(78.7	)			—
Total			999.5				1,978.8				1,026.7				103	%			2,000.3				101	%			4,400.0				109	%

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

 

		(Billions of yen)
		2010								2011
		Three months ended September 30				Six months ended September 30				Three months ended September 30								Six months ended September 30								Total (Forecast)
		(A)				(B)				(C)				(C)/(A)				(D)				(D)/(B)				(E)				(E)/FY2010
Information & Telecommunication Systems			9.9				15.4				11.0				111	%			18.0				117	%
Power Systems			2.7				5.6				7.0				255	%			9.7				174	%
Social Infrastructure & Industrial Systems			5.5				8.6				7.0				127	%			11.5				134	%
Electronic Systems & Equipment			3.2				6.3				5.6				172	%			8.3				131	%
Construction Machinery			9.4				15.2				18.9				199	%			26.9				177	%
High Functional Materials & Components			15.0				26.4				15.8				106	%			27.5				104	%
Automotive Systems			4.5				7.6				9.0				199	%			15.2				201	%
Components & Devices			16.0				23.8				13.4				84	%			23.0				96	%
Digital Media & Consumer Products			4.2				6.8				4.1				97	%			7.6				113	%
Financial Services			73.7				139.3				67.7				92	%			130.2				93	%
Others			6.6				11.6				9.2				138	%			15.5				133	%
Subtotal			151.3				267.0				169.1				112	%			294.0				110	%
Eliminations & Corporate items			(2.0	)			(3.5	)			(2.9	)			—				(5.7	)			—
Total			149.2				263.5				166.2				111	%			288.3				109	%			724.0				130	%
Internal use Assets			73.3				120.2				94.8				129	%			154.6				129	%			405.0				148	%
Leasing Assets			75.8				143.2				71.3				94	%			133.7				93	%			319.0				112	%

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6. Consolidated Depreciation by Business Segment^*3

 

										(Billions of yen)
		2010								2011
		Three months ended September 30				Six months ended September 30				Three months ended September 30								Six months ended September 30								Total (Forecast)
		(A)				(B)				(C)				(C)/(A)				(D)				(D)/(B)				(E)				(E)/FY2010
Information & Telecommunication Systems			8.9				17.2				6.4				73	%			13.6				79	%
Power Systems			4.4				8.8				3.8				86	%			7.9				89	%
Social Infrastructure & Industrial Systems			5.0				10.4				4.8				96	%			9.6				92	%
Electronic Systems & Equipment			3.0				6.3				2.7				91	%			5.5				86	%
Construction Machinery			8.3				17.0				8.0				97	%			16.9				100	%
High Functional Materials & Components			17.1				34.2				15.0				88	%			30.6				89	%
Automotive Systems			7.5				15.2				6.0				80	%			12.0				79	%
Components & Devices			12.7				25.1				10.5				83	%			21.1				84	%
Digital Media & Consumer Products			4.9				9.8				4.2				87	%			9.5				97	%
Financial Services			14.9				29.9				14.6				98	%			29.4				99	%
Others			6.6				13.5				7.6				114	%			14.7				109	%
Subtotal			93.7				188.0				84.2				90	%			171.1				91	%
Eliminations & Corporate items			1.0				1.7				0.7				69	%			1.0				59	%
Total			94.7				189.8				84.9				90	%			172.2				91	%			375.0				98	%
Internal use Assets			75.2				150.3				65.0				86	%			132.2				88	%			300.0				99	%
Leasing Assets			19.5				39.5				19.9				102	%			39.9				101	%			75.0				95	%

7. Consolidated R&D Expenditure by Business Segment^*3

 

										(Billions of yen)
		2010								2011
		Three months ended September 30				Six months ended September 30				Three months ended September 30								Six months ended September 30								Total (Forecast)
		(A)				(B)				(C)				(C)/(A)				(D)				(D)/(B)				(E)				(E)/FY2010
Information & Telecommunication Systems			20.5				40.3				23.0				112	%			41.8				104	%
Power Systems			3.6				7.6				4.0				111	%			7.6				101	%
Social Infrastructure & Industrial Systems			5.4				9.8				6.3				117	%			11.1				113	%
Electronic Systems & Equipment			11.8				21.7				12.3				105	%			23.0				106	%
Construction Machinery			4.2				8.2				3.8				90	%			7.7				94	%
High Functional Materials & Components			11.7				23.1				11.5				98	%			22.7				99	%
Automotive Systems			12.6				24.5				13.0				103	%			25.4				104	%
Components & Devices			18.4				34.7				17.7				96	%			34.6				100	%
Digital Media & Consumer Products			6.2				12.2				6.1				98	%			11.7				96	%
Financial Services			—				—				—				—				0.1				—
Others			0.9				1.7				0.5				59	%			1.1				66	%
Corporate items			6.3				10.6				6.2				98	%			11.6				110	%
Total			102.2				194.8				105.0				103	%			199.1				102	%			420.0				106	%
Percentage of revenues (%)			4.4				4.3				4.3				—				4.4				—				4.4				—

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8. Consolidated Balance Sheets by Financial and Non-Financial Services^*4

 

		(Billions of yen)
		As of March 31, 2011												As of September 30, 2011
		Manufacturing, Services and Others				Financial Services				Total*5				Manufacturing, Services and Others				Financial Services				Total*5
Current assets			4,302.1				940.0				4,900.0				4,349.5				925.7				4,951.4
Cash and cash equivalents			533.6				108.8				554.8				488.2				140.7				510.6
Trade receivables			1,770.8				483.4				2,090.9				1,762.9				467.9				2,070.7
Investments in leases			82.6				171.2				228.3				81.1				165.2				221.4
Current portion of financial assets transferred to consolidated securitization entities			58.2				125.3				183.5				4.8				103.0				107.9
Inventories			1,341.8				0.2				1,341.7				1,519.6				0.2				1,520.8
Others			514.9				50.9				500.6				492.5				48.5				519.8
Investments and advances			605.6				43.2				614.1				562.0				53.6				576.0
Property, plant and equipment			1,920.1				193.4				2,111.2				1,945.7				188.5				2,132.1
Financial assets transferred to consolidated securitization entities			—				304.1				304.1				—				250.6				250.6
Other assets			849.8				456.7				1,256.0				906.2				431.1				1,288.8
Total Assets			7,677.7				1,937.6				9,185.6				7,763.6				1,849.8				9,199.1
Current liabilities			3,505.8				926.8				4,088.8				3,621.9				922.7				4,218.5
Short-term debt and current portion of long-term debt			605.2				347.4				810.8				788.8				425.7				1,056.4
Current portion of non-recourse borrowings of consolidated securitization entities			21.8				169.0				190.8				4.8				131.7				136.6
Trade payables			1,182.3				224.7				1,257.1				1,182.5				221.7				1,264.3
Others			1,696.4				185.6				1,829.9				1,645.7				143.4				1,761.0
Long-term debt			886.5				484.3				1,300.3				894.0				458.1				1,278.8
Non-recourse borrowings of consolidated securitization entities			—				219.5				219.5				—				169.1				169.1
Other noncurrent liabilities			1,075.0				64.8				1,135.5				1,036.1				54.0				1,085.9
Total Liabilities			5,467.4				1,695.5				6,744.2				5,552.2				1,604.1				6,752.5
Total Hitachi, Ltd. stockholders’ equity			1,308.9				142.8				1,439.8				1,317.1				144.9				1,450.5
Noncontrolling interests			901.3				99.1				1,001.5				894.2				100.7				996.0
Total Equity			2,210.3				242.0				2,441.3				2,211.4				245.7				2,446.6
Total Liabilities and Equity			7,677.7				1,937.6				9,185.6				7,763.6				1,849.8				9,199.1
Interest-bearing debt			1,513.6				1,220.3				2,521.5				1,687.7				1,184.7				2,641.1
D/E ratio (including noncontrolling interests)			0.68				5.04				1.03				0.76				4.82				1.08
Total Hitachi, Ltd. stockholders’ equity ratio			17.0	%			7.4	%			15.7	%			17.0	%			7.8	%			15.8	%

 

*4	Figures in tables 8, 9 and 10 represent unaudited financial information prepared by the Company for the purpose of this supplementary information.

*5	Total Figures exclude intra-segment transactions.

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9. Consolidated Statements of Operations by Financial and Non-Financial Services^*4

 

		(Billions of yen)
		2010												2011
		Six months ended September 30												Six months ended September 30
		Manufacturing, Services and Others				Financial Services				Total*5				Manufacturing, Services and Others				Financial Services				Total*5
Revenues			4,395.5				186.6				4,502.4				4,456.1				181.4				4,572.7
Operating income			207.4				11.2				218.0				157.4				14.1				170.6
Income before income taxes			253.3				11.0				263.8				120.2				13.5				133.0
Net income attributable to Hitachi, Ltd.			155.2				3.6				158.0				46.9				4.8				50.9

10. Consolidated Statements of Cash Flows by Financial and Non-Financial Services^*4

 

		(Billions of yen)
		2010												2011
		Six months ended September 30												Six months ended September 30
		Manufacturing, Services and Others				Financial Services				Total*5				Manufacturing, Services and Others				Financial Services				Total*5
Cash flows from operating activities			298.7				84.5				377.5				69.2				28.7				93.1
Cash flows from investing activities			(171.7	)			79.5				(105.6	)			(236.3	)			26.4				(221.7	)
Cash flows from financing activities			(33.0	)			(171.4	)			(193.8	)			140.9				(23.0	)			104.0
Effect of consolidation of securitization entities upon initial adoption of new accounting guidances			—				12.0				12.0				—				—				—
Effect of exchange rate changes on cash and cash equivalents			(33.6	)			(0.1	)			(33.7	)			(19.3	)			(0.2	)			(19.5	)
Net increase (decrease) in cash and cash equivalents			60.3				4.4				56.2				(45.4	)			31.8				(44.1	)
Cash and cash equivalents at beginning of the period			549.1				213.3				577.5				533.6				108.8				554.8
Cash and cash equivalents at end of the period			609.5				217.7				633.8				488.2				140.7				510.6

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11. Information & Telecommunication Systems

(1) Revenues and Operating Income^*6

 

										(Billions of yen)
		2010								2011
		Three months ended September 30				Six months ended September 30				Three months ended September 30								Six months ended September 30								Total (Forecast)
		(A)				(B)				(C)				(C)/(A)				(D)				(D)/(B)				(E)				(E)/FY2010
Revenues			425.8				774.8				446.2				105	%			797.0				103	%			1,700.0				103	%
Software & Services			286.5				520.1				308.8				108	%			553.1				106	%			1,180.0				105	%
Software			38.2				73.8				45.3				119	%			83.5				113	%
Services			248.3				446.3				263.4				106	%			469.5				105	%
Hardware			139.2				254.4				137.4				99	%			243.9				96	%			520.0				98	%
Storage*7			40.2				86.2				47.0				117	%			92.0				107	%
Servers*8			14.9				24.9				13.7				92	%			24.0				96	%
PCs*9			9.3				14.9				8.5				91	%			14.5				97	%
Telecommunication			35.3				65.2				36.2				103	%			61.2				94	%
Others			39.4				62.9				31.7				80	%			51.9				83	%
Operating income			34.3				34.5				28.9				84	%			31.0				90	%			110.0				112	%
Software & Services							30.7												30.8				100	%			94.0				110	%
Hardware							3.8												0.1				3	%			16.0				126	%

 

*6	Figures for each product exclude intra-segment transactions.

*7	Figures for Storage include disk array systems, 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)
		2010								2011
		Three months ended September 30				Six months ended September 30				Three months ended September 30								Six months ended September 30								Total (Forecast)
		(A)				(B)				(C)				(C)/(A)				(D)				(D)/(B)				(E)				(E)/FY2010
Revenues			74.0				148.0				84.0				114	%			167.0				113	%			335.0				104	%

12. Hard Disk Drives^*10*11

 

Period recorded for consolidated accounting purposes		2010												2011
		Three months ended September 30				Six months ended September 30				Three months ended December 31				Three months ended September 30								Six months ended September 30								Three months ended December 31
		(A)				(B)				(C)				(D)				(D)/(A)				(E)				(E)/(B)				(F) (Preliminary)				(F)/(C)
Shipment Period		Apr. 2010 to Jun. 2010				Jan. 2010 to Jun. 2010				Jul. 2010 to Sep. 2010				Apr. 2011 to Jun. 2011								Jan. 2011 to Jun. 2011								Jul. 2011 to Sep. 2011
Revenues
Billions of yen			138.4				270.7				128.7				116.8				84	%			232.2				86	%			131.6				102	%
Millions of U.S.$			1,504				2,963				1,498				1,429				95	%			2,831				96	%			1,689				113	%
Operating income
Billions of yen			17.1				36.8				11.9				6.8				40	%			13.5				37	%			14.0				118	%
Millions of U.S.$			186				403				138				84				45	%			164				41	%			180				130	%
Shipments (thousand units)*12			28,200				54,700				28,800				26,900				95	%			55,500				101	%			31,900				111	%
Consumer and Commercial
2.5-inch			16,600				32,300				16,800				16,800				101	%			32,600				101	%			20,000				119	%
3.5-inch			8,200				16,000				8,400				6,700				81	%			15,600				97	%			8,100				96	%
Servers			1,900				3,400				1,800				2,300				119	%			4,200				125	%			2,700				148	%
Emerging			860				1,650				790				490				57	%			1,460				89	%			360				45	%
External HDD			660				1,460				960				670				103	%			1,610				110	%			780				81	%

 

*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 six months ended September 30, 2011 include the operating results of Hitachi GST for the six months ended June 30, 2011.

*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.

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