Hitachi : Annual Securities Report (PDF format, 6,351 kBytes)

Annual Securities Report

(e 152nd Business Term) From April 1, 2020 to March 31, 2021

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

Hitachi, Ltd.

[Cover]
[Document Filed]	Annual Securities Report ("Yukashoken Hokokusho")
[Applicable Law]	Article 24, Paragraph 1 of the Financial Instruments and Exchange Act of Japan
[Filed with]	Director, Kanto Local Finance Bureau
[Filing Date]	June 23, 2021
[Fiscal Year]	The 152nd Business Term (from April 1, 2020 to March 31, 2021)
[Company Name]	Kabushiki Kaisha Hitachi Seisakusho
[Company Name in English]	Hitachi, Ltd.
[Title and Name of	Keiji Kojima, President & COO
Representative]
[Address of Head Office]	6-6, Marunouchi 1-chome,Chiyoda-ku, Tokyo
[Phone No.]	03-3258-1111
[Contact Person]	Takahiro Yamada, Manager, Legal Division
[Contact Address]	6-6, Marunouchi 1-chome,Chiyoda-ku, Tokyo
[Phone No.]	03-3258-1111
[Contact Person]	Takahiro Yamada, Manager, Legal Division
[Place Where Available for	Tokyo Stock Exchange, Inc.
Public Inspection]	(2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)
	Nagoya Stock Exchange, Inc.
	(8-20, Sakae 3-chome,Naka-ku, Nagoya)

This is an English translation of the Annual Securities Report filed with the Director of the Kanto Local Finance Bureau via Electronic Disclosure for Investors' NETwork ("EDINET") pursuant to the Financial Instruments and Exchange Act of Japan with some contents including cover page, table of contents and URL of the reference information.

Certain information in "Part I. Information on the Company - II. Business Overview - 2. Risk Factors - Risks Related to Our American Depositary Shares" is only included in this English translation of the Annual Securities Report for ADSs holders and not included in the original report.

Certain information in "Part I. Information on the Company - V. Financial Information" in this document incorporates financial statements prepared in conformity with the International Financial Report Standards ("IFRS") as issued by the International Accounting Standards Board and independent auditor's report instead of the English translation of the Annual Securities Report.

The translation of the Internal Control Report, the Independent Auditors' Report and the Confirmation Letter for the original Annual Securities Report are included at the end of this document.

In this document, the terms "we," "us," "our" and "Hitachi" refer to Hitachi, Ltd. and consolidated subsidiaries or, as the context may require, Hitachi, Ltd. on a non-consolidated basis and the term "the Company" refers to Hitachi, Ltd. on a non- consolidated basis.

Unless otherwise stated, in this document, where we present information in millions or hundreds of millions of yen, we have truncated amounts of less than one million or one hundred million, as the case may be. Accordingly, the total of figures presented in columns or otherwise may not equal the total of the individual items. We have rounded all percentages to the nearest percent, one-tenth of one percent or one-hundredth of one percent, as the case may be.

References in this document to the "Financial Instruments and Exchange Act" are to the Financial Instruments and Exchange Act of Japan and other laws and regulations amending and/or supplementing the Financial Instruments and Exchange Act of Japan.

References in this document to the "Companies Act" are to the Companies Act of Japan and other laws and regulations amending and/or supplementing the Companies Act of Japan.

Part I Information on the Company	1
I.	Overview of the Company	1
	1. Key Financial Data .………………………………………………………………………………	1
	2. History ……………………………………………………………………………………………	3
	3. Description of Business ..…………………………………………………………………………	7
	4. Information on Affiliates …………………………………………………………………………	11
	5. Employees ..………………………………………………………………………………………	20
II.	Business Overview	21
	1. Management Policy, Economic Environment and Challenges Hitachi Group Faces ……………	21
	2. Risk Factors ………………………………………………………………………………………	28
	3. Management's Discussion and Analysis of Consolidated Financial Condition,
	Results of Operations and Cash Flows ...…………………………………………………………	40
	4. Material Agreements, etc ...………………………………………………………………………	56
	5. Research and Development ………………………………………………………………………	58
III.	Property, Plants and Equipment	63
	1. Summary of Capital Investment, etc. .……………………………………………………………	63
	2. Major Property, Plants and Equipment ..…………………………………………………………	64
	3. Plans for Capital Investment, Disposals of Property, Plants and Equipment, etc. .………………	68
IV.	Information on the Company	69
	1. Information on the Company's Stock, etc. .………………………………………………………	69
	(1) Total number of shares, etc. ..…………………………………………………………………	69
	(2) Information on the stock acquisition rights, etc. ..……………………………………………	70
	(3) Information on moving strike convertible bonds, etc. .………………………………………	72
	(4) Changes in the total number of issued shares and the amount of common stock and other …	72
	(5) Shareholders composition ……………………………………………………………………	73
	(6) Major shareholders ...…………………………………………………………………………	74
	(7) Information on voting rights .…………………………………………………………………	76
	2. Information on Acquisition, etc. of Treasury Stock ...……………………………………………	77
	3. Dividend Policy ..…………………………………………………………………………………	78
	4. Corporate Governance, etc. ………………………………………………………………………	79
	(1) Corporate Governance ..………………………………………………………………………	79
	(2) Directors and Senior Management. ..…………………………………………………………	84

1. Audit .………………………………………………………………………………………… 97
2. Compensation to Directors and Executive Officers .………………………………………… 101
3. Information on shareholdings ...……………………………………………………………… 107 V. Financial Information ...………………………………………………………………………… 112

VI. Stock-Related Administration for the Company ...………………………………………… 112

VII. Reference Information on the Company .…………………………………………………… 113

Part II Information on Guarantors, etc. for the Company	114
[Consolidated Financial Statements] ..……………………………………………………………………… F-1
Consolidated Financial Statements. ...………………………………………………………………	F-2

Reports of Independent Registered Public Accounting Firm ....…………………………………… F-80

[Internal Control Report (Translation)] ..…………………………………………………………………… A-1

[Independent Auditors' Report (Translation)] ...…………………………………………………………… A-3

[Confirmation Letter (Translation)] ...……………………………………………………………………… A-9

Part I Information on the Company

I. Overview of the Company

1. Key Financial Data

(1) Consolidated financial data, etc.

(Millions of yen, unless otherwise stated)

Fiscal year			IFRS
148th	149th	150th	151st	152nd
	business term	business term	business term	business term	business term
Year end	March 2017	March 2018	March 2019	March 2020	March 2021
Revenues	9,162,264	9,368,614	9,480,619	8,767,263	8,729,196
Income from continuing	469,091	638,646	516,502	180,268	844,443
operations, before income taxes
Net income attributable to	231,261	362,988	222,546	87,596	501,613
Hitachi, Ltd. stockholders
Comprehensive income
attributable to Hitachi, Ltd.	299,397	382,341	171,140	(8,465)	838,237
stockholders
Total Hitachi, Ltd.	2,967,085	3,278,024	3,262,603	3,159,986	3,525,502
stockholders' equity
Total equity	4,096,995	4,511,671	4,414,403	4,266,739	4,458,232
Total assets	9,663,917	10,106,603	9,626,592	9,930,081	11,852,853
Total Hitachi, Ltd.
stockholders' equity per share	3,072.79	3,395.00	3,378.81	3,270.43	3,646.46
(yen)
Earnings per share attributable
to Hitachi, Ltd. stockholders,	239.49	375.93	230.47	90.71	519.29
basic (yen)
Earnings per share attributable
to Hitachi, Ltd. stockholders,	239.42	375.60	230.25	90.60	518.51
diluted (yen)
Total Hitachi, Ltd.	30.7	32.4	33.9	31.8	29.7
stockholders' equity ratio (%)
Return on equity (%)	8.1	11.6	6.8	2.7	15.0
Price earnings ratio (times)	12.6	10.3	15.6	34.6	9.6
Net cash provided by operating	629,582	727,168	610,025	560,920	793,128
activities
Net cash used in investing	(337,955)	(474,328)	(162,872)	(525,826)	(458,840)
activities
Net cash provided by (used in)	(209,536)	(321,454)	(320,426)	2,837	(184,838)
financing activities
Cash and cash equivalents at	765,242	697,964	807,593	812,331	1,015,886
end of year
Number of employees	303,887	307,275	295,941	301,056	350,864

(Notes) 1. Our consolidated financial statements have been prepared in conformity with IFRS.

1. Revenues do not include the consumption tax, etc.
2. On October 1, 2018, the Company completed the share consolidation of every five shares into one share for its common stock. The figures for total Hitachi, Ltd. stockholders' equity per share and earnings per share attributable to Hitachi, Ltd. stockholders, basic and diluted, are calculated on the assumption that the Company conducted this share consolidation at the beginning of the 148th business term.
3. Average numbers of part-time employees, etc. are not stated since those were less than 10% of the number of employees.

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(2) Financial data etc. of the Company

(Millions of yen, unless otherwise stated)

Fiscal year	148th	149th	150th	151st	152nd
business term	business term	business term	business term	business term
Year end	March 2017	March 2018	March 2019	March 2020	March 2021
Revenues	1,906,532	1,930,293	1,927,241	1,793,250	1,678,223
Ordinary income	71,599	131,294	304,069	355,490	305,461
Net income	97,724	136,117	174,062	119,409	705,511
Common stock	458,790	458,790	458,790	459,862	460,790
Number of issued shares (thousands	4,833,463	4,833,463	966,692	967,280	967,885
of shares)
Total net assets	1,497,428	1,536,018	1,563,456	1,579,058	2,243,742
Total assets	4,070,247	4,017,373	3,934,118	4,004,408	4,982,609
Net assets per share (yen)	1,550.49	1,589.79	1,617.32	1,631.97	2,318.50
Dividends per share (yen)	13	15	58	95	105
[Of the above, interim dividends per	[6]	[7]	[8]	[45]	[50]
share (yen) ]
Net income per share, basic (yen)	101.20	140.97	180.26	123.59	729.77
Net income per share, diluted (yen)	101.17	140.85	180.09	123.49	729.18
Stockholders' equity ratio (%)	36.8	38.2	39.7	39.4	45.0
Return on equity (%)	6.8	9.0	11.2	7.6	36.9
Price earnings ratio (times)	29.8	27.3	19.9	25.4	6.9
Dividend payout ratio (%)	64.2	53.2	50.0	76.9	14.4
Number of employees	35,631	34,925	33,490	31,442	29,850
Total shareholder return (%)	116.9	151.7	144.9	131.7	206.4
[Comparative indicator : TOPIX] (%)	[112.3]	[127.4]	[118.1]	[104.1]	[145.0]
Highest share price (yen)	679.5	944.2	3,925.0	4,693.0	5,515.0
[873.7]
Lowest share price (yen)	400.0	566.3	2,767.5	2,524.0	2,855.0
[692.1]

(Notes) 1. Revenues do not include the consumption tax, etc.

1. Effective from the 150th business term, the Company adopted the "Partial Amendments to Accounting Standard for Tax Effect Accounting" (ASBJ Statement No.28, February 16, 2018) and the "Implementation Guidance on Tax Effect Accounting" (ASBJ Guidance No.28, February 16, 2018). The figures for total net assets, total assets, net assets per share, stockholders' equity ratio and return on equity for the 149th business term are restated as the standard and guidance are applied retroactively.
2. On October 1, 2018, the Company completed the share consolidation of every five shares into one share for its common stock. The figures for net assets per share and net income per share, basic and diluted, are calculated on the assumption that the Company conducted this share consolidation at the beginning of the 148th business term.
3. On October 1, 2018, the Company completed the share consolidation of every five shares into one share for its common stock. 58 yen of dividends per share for the 150th business term is the sum of 8 yen of the interim dividend per share before the share consolidation and 50 yen of the year-end dividend per share after the share consolidation.
4. Average number of part-time employees, etc. is not stated since it was less than 10% of the number of employees.
5. The highest and lowest share prices are market prices on the first section of the Tokyo Stock Exchange. On October 1, 2018, the Company completed the share consolidation of every five shares into one share for its common stock. Regarding the 150th business term, the figures in the upper row are the highest and lowest prices after the share consolidation and the figures in brackets in the lower row are those before the share consolidation.

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