Hitachi : Quarterly Report (Second Quarter) (PDF format, 535 kBytes)

[Translation]

Quarterly Report

(The Second Quarter of 153rd Business Term)

From July 1, 2021 to September 30, 2021

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

Hitachi, Ltd.

[Cover]

[Document Filed]

[Applicable Law]

[Filed with]

[Filing Date]

[Fiscal Year]

[Company Name]

[Company Name in English]

[Title and Name of Representative]

[Address of Head Office]

[Phone No.]

[Contact Person]

[Contact Address]

[Phone No.]

[Contact Person]

[Place Where Available for Public Inspection]

Quarterly Report ("Shihanki Hokokusho")

Article 24-4-7, Paragraph 1 of the Financial Instruments and Exchange Act of Japan

Director, Kanto Local Finance Bureau

November 12, 2021

The Second Quarter of 153rd Business Term (from July 1, 2021 to September 30, 2021)

Kabushiki Kaisha Hitachi Seisakusho

Hitachi, Ltd.

Keiji Kojima, President & COO

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

03-3258-1111

Takahiro Yamada, Manager, Legal Division

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

03-3258-1111

Takahiro Yamada, Manager, Legal Division

Tokyo Stock Exchange, Inc.

(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 Quarterly 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.

The translation of the Confirmation Letter for the original Quarterly Report is included at the end of this document. Unless the context indicates otherwise, the term "Company" refers to Hitachi, Ltd. and the term "Hitachi" refers to the

Company and its consolidated subsidiaries.

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.

Contents

Part I Information on the Company ………………………………………………………………………………………………	1
I. Overview of the Company ……………………………………………………………………………………………………	1
1. Key Financial Data ………………………………………………………………………………………………………	1
2. Description of Business ……………………………………………………………………………………………………	2
II. Business Overview …………………………………………………………………………………………………………	3
1. Risk Factors ………………………………………………………………………………………………………………	3
2. Management's Discussion and Analysis of Consolidated Financial Condition, Results of Operations and Cash Flows …	3
3. Material Agreements, etc. …………………………………………………………………………………………………	9
III. Information on the Company ………………………………………………………………………………………………	10
1. Information on the Company's Stock, etc. ………………………………………………………………………………	10
(1) Total number of shares, etc. ……………………………………………………………………………………………	10
(2) Information on the stock acquisition rights, etc. ………………………………………………………………………	10
(3) Information on moving strike convertible bonds, etc. …………………………………………………………………	10
(4) Changes in the total number of issued shares and the amount of common stock and other …………………………	10

1. Major shareholders …………………………………………………………………………………………………… 11
2. Information on voting rights ………………………………………………………………………………………… 12

2. Changes in Senior Management ………………………………………………………………………………………… 13 IV. Financial Information ……………………………………………………………………………………………………… 13

Part II Information on Guarantors, etc. for the Company …………………………………………………………………………	13
[Condensed Quarterly Consolidated Financial Statements] ………………………………………………………………………	F1

[Confirmation Letter] ……………………………………………………………………………………………………………… A1

Part I Information on the Company

I. Overview of the Company

1. Key Financial Data Consolidated financial data, etc.

(Millions of yen, unless otherwise stated)

	Six months ended	Six months ended	Year ended
	September 30, 2020	September 30, 2021	March 31, 2021
Revenues	3,760,057	4,832,665	8,729,196
[2,165,780]	[2,465,228]
Income from continuing operations, before	384,254	420,107	844,443
income taxes
Net income attributable to Hitachi, Ltd.	250,755	322,444	501,613
stockholders	[27,504]	[200,213]
Comprehensive income attributable to Hitachi,	285,855	366,183	838,237
Ltd. stockholders
Total Hitachi, Ltd. stockholders' equity	2,915,955	3,824,891	3,525,502
Total equity	3,572,774	4,750,232	4,458,232
Total assets	10,616,015	12,879,522	11,852,853
Earnings per share attributable to Hitachi, Ltd.	259.60	333.67	519.29
stockholders, basic (yen)	[28.47]	[207.17]
Earnings per share attributable to Hitachi, Ltd.	259.29	333.24	518.51
stockholders, diluted (yen)
Total Hitachi, Ltd. stockholders' equity ratio (%)	27.5	29.7	29.7
Net cash provided by operating activities	214,491	161,468	793,128
Net cash used in investing activities	(703,884)	(951,429)	(458,840)
Net cash provided by financing activities	433,819	646,539	(184,838)
Cash and cash equivalents at end of period	759,882	880,966	1,015,886

(Notes) 1. Hitachi's consolidated financial statements have been prepared in conformity with the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

1. Revenues do not include the consumption tax, etc.
2. The figures of "Revenues," "Net income attributable to Hitachi, Ltd. stockholders" and "Earnings per share attributable to Hitachi, Ltd. stockholders, basic" in square bracket are those for the three months ended September 30, 2020 and 2021, respectively.

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2. Description of Business

There were no material changes in principal businesses of Hitachi during the six months ended September 30, 2021. The Hitachi Group is comprised of the Company, 873 consolidated subsidiaries, and 290 equity-method associates and joint-ventures.

Changes in Business Unit (BU) of the Company and principal affiliated companies during the six months ended September 30,

2021 were as follows.

				(As of September 30, 2021)
Main products and services		BU and principal affiliated companies
BU		Affiliated companies
IT				[Consolidated subsidiaries]
				(Change in company name) (Note 1)
				Hitachi Channel Solutions Corp.
				(New) (Note 2)
				GlobalLogic Worldwide Holdings, Inc.
				(Change in company name) (Note 3)
				Hitachi Global Digital Holdings LLC
Energy		(New) (Note 4)		[Consolidated subsidiaries]
		Power Grid BU		(Change in company name) (Note 5)
				Hitachi Energy Ltd
Smart Life			[Equity-method associates]
				(Change by reorganization and Change in
				company name) (Note 6)
				Arcelik Hitachi Home Appliances B.V.
				Arcelik Hitachi Home Appliances (Thailand)
				Ltd.
Automotive Systems			[Consolidated subsidiaries]
(Reclassification of segment) (Note 7)			(Reclassification of segment) (Note 7)
Automotive Systems (Powertrain,			Hitachi Astemo, Ltd.
Chassis, Advanced Driver			Hitachi Astemo Americas, Inc.
Assistance, Motorcycle)
(Notes) 1.	Hitachi-Omron Terminal Solutions, Corp. changed its name to Hitachi Channel Solutions Corp. on July 1, 2021.

1. GlobalLogic Worldwide Holdings, LLC. has become a consolidated subsidiary of the Company on July 13, 2021 as Hitachi Global Digital Holdings LLC, a consolidated subsidiary of the Company, acquired 100% of the outstanding shares of GlobalLogic Worldwide Holdings, LLC.
2. Hitachi Global Digital Holdings Corporation changed its name to Hitachi Global Digital Holdings LLC on April 1, 2021.
3. Power Grid BU was newly established on April 1, 2021
4. Hitachi ABB Power Grids Ltd changed its name to Hitachi Energy Ltd on June 30, 2021.
5. Arcelik Hitachi Home Appliance B.V. has become an equity-method associate of the Company as the company took over Hitachi Group's home appliances business outside Japan and started its business on July 1, 2021. In this process, Hitachi Consumer Products (Thailand), Ltd., which was a major subsidiary of the Company, has become an equity-method associate of the Company and changed its name to Arcelik Hitachi Home Appliance (Thailand) Ltd. as Arcelik Hitachi Home Appliance B.V. inherited the shares of Hitachi Consumer Products (Thailand), Ltd.
6. Hitachi Astemo, Ltd., Hitachi Astemo Americas, Inc. and their main products and services, Automotive Systems, were spun off from the Smart Life segment to the Automotive Systems segment newly established on April 1, 2021
7. In addition to the table above, Hitachi Capital Corporation, which was a major equity-method associate of the Company, merged with Mitsubishi UFJ Lease & Finance Company Limited (currently Mitsubishi HC Capital Inc.) and ceased to be an equity-method affiliate of the Company on April 1, 2021

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