Hitachi Kokusai Electric : Consolidated Financial Statements for the Second Quarter Ended September 30, 2016

Consolidated Financial Statements for the Second Quarter Ended September 30, 2016

October 26, 2016

Registered Company Name: Hitachi Kokusai Electric Inc. Stock Listings: Tokyo Code No: 6756

URL: http://www.hitachi-kokusai.co.jp/global/

Representative: Kaichiro Sakuma, President, CEO and Director

Contact: Akira Horiuchi, General Manager of CSR Center Telephone: [phone] Scheduled date of filing of quarterly report: November 11, 2016

Planned Start Date for Dividend Payments: December 1, 2016 Preparation of supplementary material for financial results: Yes

Holding of financial results meeting: Yes (for analysts and institutional investors)

(All figures are rounded off to the nearest million yen)

1. Consolidated Financial Results (For the six months ended September 30, 2016)

2. Consolidated Results of Operations (Percentages indicate percentage increase or decrease year-on-year)

   Revenues		Adjusted Operating Income		Income before income taxes		Net Income		Net income attributable to owners of the parent		Comprehensive income
   Million Yen	%	Million Yen	%	Million Yen	%	Million Yen	%	Million Yen	%	Million Yen	%
   72,164	(20.6)	3,019	(70.0)	3,294	(68.5)	2,209	(71.3)	2,294	(70.3)	(351)	－
   90,940	23.0	10,065	69.1	10,446	95.7	7,685	81.9	7,712	84.4	6,236	9.9

   2Q of FY 2016

   2Q of FY 2015

   Basic earnings per share

   Diluted earnings per share

   Yen Yen

   2Q of FY2016 22.34 －

   2Q of FY2015 75.08 －

3. Consolidated Financial Position

   Total Assets Total Equity Equity attributableto

   owners of the parent

   Ratio of equity attributable to owners of the parent to total assets

   Equity attributable to owners of the parent per share

   2Q of FY2016	Million Yen 173,000	Million Yen 92,602	Million Yen 92,432	% 53.4	Yen 899.97
   FY2015	174,569	96,087	95,964	55.0	934.35

4. Dividends

   Dividend per Share

   1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total

   Yen － －	Yen 14.00 10.00	Yen －	Yen 26.00	Yen 40.00
   －	16.00	26.00

   FY2015 FY2016

   FY2016 (Forecast)

   (Note) Revision of the latest dividend forecast: Yes

5. Consolidated Financial Forecast for FY2016 (From April 1, 2016 to March 31, 2017)

   (Percentages indicate percentage increase or decrease year-on-year)

   Revenues Adjusted Operating Income

   Income before

   income taxes NetIncome

   Net income attributable to owners of the parent

   Basic earnings per share

   Million

   Yen %

   Million

   Yen %

   Million

   Yen %

   Million

   Yen %

   Million

   Yen % Yen

   FY2016 169,000 (6.5) 13,600 (15.7) 12,700 (24.2) 8,500 (34.4) 8,500 (34.6) 82.76

   (Note) Revision of the latest dividend forecast: Yes

   Notes

6. Changes to significant subsidiaries during the term (changes in specified subsidiaries due to changes in scope) : No

7. Changes in accounting policies and accounting estimates

   [1] Changes in accounting policies requested by IFRS : No [2] Changes other than [1] above : No

   [3] Changes in accounting estimates : No

8. Number of shares issued (common stock) [1] Number of shares at end of period

9. (Including treasury stock)

   [2] Number of treasury stock at end of period

   [3] Average number of shares during the period (Quarterly Cumulative Total)

   2Q of FY2016 105,221,259 shares FY2015 105,221,259 shares

   2Q of FY2016 2,515,767 shares FY2015 2,514,706 shares 2Q of FY2016 102,706,075 shares 2Q of FY2015 102,720,794 shares

   (Notes)

   Information regarding the implementation of review procedure

   This quarterly financial report is exempt from the review procedure based upon the Financial Instruments and Exchange Act. It is under the review procedure process at the time of disclosure of this report.

   Explanation on the appropriate use of financial forecasts and other important items

   The forecasts figures are based on information currently available to the Company and certain assumptions deemed to be reasonable. This material does not represent promises or guarantees regarding the forecasts and due to various factors, actual results may vary significantly from these forecasts.

   HITACHI KOKUSAI ELECTRIC INC. CONSOLIDATED FINANCIAL STATEMENTS

   Consolidated Statements of Financial Position (Unaudited) September 30, 2016 and March 31, 2016

   Assets

   Current assets

   Millions of Yen

   FY2015 2Q of FY2016

   Cash and cash equivalents	47,567	53,928
   Trade and other receivables	50,192	37,799
   Inventories	37,120	41,932
   Other current assets	1,760	1,254
   Subtotal	136,639	134,913
   Non-current assets Property, plant and equipment	21,503	21,890
   Intangible assets	2,525	3,683
   Other financial assets	10,049	8,282
   Deferred tax assets	2,784	3,312
   Other non-current assets	1,069	920
   Total non-current assets	37,930	38,087
   Total assets	174,569	173,000

   Liabilities

   Current liabilities

   Millions of Yen

   FY2015 2Q of FY2016

   Short-term debt	733	1,031
   Trade and other payables	36,600	34,335
   Accrued expenses	11,087	10,021
   Other financial liabilities	222	228
   Income tax payable	2,032	1,622
   Advances received	3,227	8,129
   Provisions	1,972	1,483
   Other current liabilities	55	36
   Total current liabilities	55,928	56,885
   Non-current liabilities
   Long-term debt	101	604
   Other financial liabilities	－	765
   Retirement and severance benefits	22,083	21,834
   Provisions	94	52
   Other non-current liabilities	276	258
   Total non-current liabilities	22,554	23,513
   Total liabilities	78,482	80,398

   Equity

   Equity attributable to owners of the parent

   Common stock	10,058	10,058
   Capital surplus	17,534	16,914
   Retained earnings	68,088	67,712
   Other components of equity	3,022	488
   Treasury stock, at cost	(2,738)	(2,740)
   Total equity attributable to owners of the parent	95,964	92,432
   Non-controlling interests	123	170
   Total equity	96,087	92,602
   Total liabilities and equity	174,569	173,000