Hitachi : Supplemental Material

Supplemental Information for Consolidated Financial Results for the First Quarter of Fiscal 2021

[The Quarter Ended June, 2021]

2021年度第1四半期 連結決算 補足情報

［2022年3月期第1四半期］

July 30, 2021

Hitachi, Ltd.

株式会社日立製作所

1. Summary of Condensed Quarterly Consolidated Statement of Profit or Loss	要約四半期連結損益計算書	2
2. Summary of Condensed Quarterly Consolidated Statement of Cash Flows	要約四半期連結キャッシュ・フロー計算書	3
3. Summary of Condensed Quarterly Consolidated Statement of Financial Position 要約四半期連結財政状態計算書	3
4. Financial Results by Five Sectors, Astemo and Listed Subsidiaries 5セクター・Astemo・上場子会社別の業績	4
5. Financial Results and Forecast by Business Segments セグメント別業績		5
6. Revenues by Market 地域別売上収益		12
7. Lumada Business Performance Lumada事業の業績		13
8. Capital Expenditure (Completion Basis) 設備投資額(完成ベース)		14
9. Depreciation and Amortization 減価償却費及び無形資産償却費		14
10. R&D Expenditure 研究開発費		16
11. Foreign Exchange Rate 為替レート		16
12. Number of Employees and Consolidated Subsidiaries 従業員数・連結子会社数	17
13. Cautionary Statement 将来予想に関する記述		18

Supplemental Information for Consolidated Financial Results for the First Quarter of Fiscal 2021

1

1. Summary of Condensed Quarterly Consolidated Statement of Profit or Loss 要約四半期連結損益計算書

(Billions of yen)
	Q1 FY2020	Q1 FY2021	Year over year
Revenues	1,594.2	2,367.4	148%
Adjusted operating income*1	58.3	130.4	+72.1
Adjusted operating income ratio	3.7%	5.5%	+1.8 points
Adjusted EBITA*2	64.3	149.3	+85.0
Adjusted EBITA ratio	4.0%	6.3%	+2.3 points
EBIT*3	340.4	168.6	(171.7)
EBIT ratio	21.4%	7.1%	(14.3) points
EBITDA*4	439.1	300.0	(139.1)
Income from continuing operations, before income taxes	339.7	166.8	(172.8)
Income taxes	(112.8)	(29.9)	+82.9
Income tax allocation rate	33.2%	17.9%	(15.3) points
Income from continuing operations	226.8	136.9	(89.8)
Loss from discontinued operations*5	(0.3)	0.0	+0.3
Net income	226.4	136.9	(89.5)
Net income attributable to Hitachi, Ltd. stockholders	223.2	122.2	(101.0)
Earnings per share	231.13 yen	126.49 yen	(104.64) yen
Return on Invested Capital (ROIC)*6

			Previous
FY2020	FY2021	Year over year	forecast
			comparison
8,729.1	9,500.0	109%	100%
495.1	740.0	+244.8	±0.0
5.7%	7.8%	+2.1 points	±0.0 points
570.2	827.0	+256.7	±0.0
6.5%	8.7%	+2.2 points	±0.0 points
850.2	820.0	(30.2)	±0.0
9.7%	8.6%	(1.1) points	±0.0 points
1,343.0	1,370.0	+26.9	±0.0
844.4	800.0	(44.4)	±0.0
(325.2)	(180.0)	+145.2	±0.0
38.5%	22.5%	(16.0) points	±0.0 points
519.1	620.0	+100.8	±0.0
(0.6)	0.0	+0.6	±0.0
518.5	620.0	+101.4	±0.0
501.6	550.0	+48.3	±0.0
519.29 yen	569.11 yen	+49.82 yen	(0.06) yen
6.4%	8.3%	+1.9 points	±0.0 points

*1 "Adjusted operating income" is presented as revenues less selling, general and administrative expenses as well as cost of sales.

*2 "Adjusted EBITA" is presented as adjusted operating income less acquisition-related amortization.

*3 "EBIT" is presented as income from continuing operations, before income taxes less interest income plus interest charges.

*4 "EBITDA" is presented as EBIT less depreciation and amortization.

*5 A part of the thermal power generation systems business is classified as discontinued operations in accordance with the provision of IFRS 5, "Non-current Assets Held for Sale and Discontinued Operations, "which was not transferred to Mitsubishi Hitachi Power Systems, Ltd. (currently Mitsubishi Power, Ltd.) as part of the business integration in the thermal power generation systems with Mitsubishi Heavy Industries, Ltd. The results of the discontinued operations are reported separately from continuing operations.

*6 ROIC(Return on Invested Capital) = (NOPAT + Share of profits(losses) of investments accounted for using the equity method) / "Invested Capital" x 100 NOPAT(Net Operating Profit after Tax) = Adjusted Operating Income x (1 - Tax burden rate)

Invested Capital = Interest-bearing debt + Total equity

Supplemental Information for Consolidated Financial Results for the First Quarter of Fiscal 2021

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2. Summary of Condensed Quarterly Consolidated Statement of Cash Flows 要約四半期連結キャッシュ・フロー計算書

(Billions of yen)
	Q1 FY2020	Q1 FY2021	Year over year
Cash flows from operating activities	153.7	137.0	(16.7)
Cash flows margin from operating activities	9.6%	5.8%	(3.8 points)
Cash flows from investing activities	357.4	(7.0)	(364.5)
Free cash flows	511.2	130.0	(381.2)
Core free cash flows*1	80.7	39.5	(41.1)

			Previous
FY2020	FY2021	Year over year	forecast
			comparison
793.1	750.0	(43.1)	±0.0
9.1%	7.9%	(1.2) points	±0.0 points
(458.8)
334.2
419.8	300.0	(119.8)	±0.0

3. Summary of Condensed Quarterly Consolidated Statement of Financial Position 要約四半期連結財政状態計算書

(Billions of yen)	As of Mar. 31,	As of Jun. 30,	Change from
2021	2021	Mar. 31, 2021
Total assets	11,852.8	11,899.7	+46.8
Trade receivables and contract assets	2,734.4	2,492.8	(241.6)
Total liabilities	7,394.6	7,396.6	+2.0
Interest-bearing debt	2,397.3	2,531.9	+134.6
Total Hitachi, Ltd. stockholders' equity	3,525.5	3,594.0	+68.5
Non-controlling interests	932.7	909.1	(23.6)
Cash Conversion Cycle	81.0 days	68.1 days	(12.9) days
Total Hitachi, Ltd. stockholders' equity ratio	29.7%	30.2%	+0.5 points
D/E ratio (Including non-controlling interests)	0.54 times	0.56 times	+0.02 times

*1 "Core free cash flows" are cash flows presented as free cash flows excluding cash flows from M&A and asset sales, etc.

Supplemental Information for Consolidated Financial Results for the First Quarter of Fiscal 2021

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4. Financial Results by Five Sectors, Astemo and Listed Subsidiaries 5セクター・Astemo・上場子会社別の業績

(Billions of yen)
		Q1 FY2020	Q1 FY2021	Year over year
Five sectors total*1	Revenues	1,159.9	1,529.8	132%
(IT/ Energy/ Industry/	Adjusted operating income	84.6	98.2	+13.6
Mobility/ Smart Life)
Adjusted operating income ratio	7.3%	6.4%	(0.9) points
	EBIT	372.6	138.8	(233.8)
	EBIT ratio	32.1%	9.1%	(23.0) points
	Net income attributable to
	249.7	114.2	(135.4)
	Hitachi, Ltd. stockholders
Astemo	Revenues	109.3	382.5	350%
(Automotive Systems)	Adjusted operating income	(21.6)	12.1	+33.7
	Adjusted operating income ratio	(19.8)%	3.2%	+23.0 points
	EBIT	(27.9)	12.8	+40.7
	EBIT ratio	(25.6)%	3.3%	+28.9 points
	Net income attributable to
	(24.7)	2.8	+27.5
	Hitachi, Ltd. stockholders
Listed subsidiaries total	Revenues	324.9	454.9	140%
(Hitachi Construction	Adjusted operating income	(4.6)	20.1	+24.7
Machinery/
Adjusted operating income ratio	(1.4)%	4.4%	+5.8 points
Hitachi Metals)
EBIT	(4.2)	17.0	+21.2
	EBIT ratio	(1.3)%	3.7%	+5.0 points
	Net income attributable to
	(1.7)	5.1	+6.9
	Hitachi, Ltd. stockholders
	Revenues	1,594.2	2,367.4	148%
	Adjusted operating income	58.3	130.4	+72.1
	Adjusted operating income ratio	3.7%	5.5%	+1.8 points
Total	EBIT	340.4	168.6	(171.7)
	EBIT ratio	21.4%	7.1%	(14.3) points
	Net income attributable to	223.2	122.2	(101.0)
	Hitachi, Ltd. stockholders

			Previous
FY2020	FY2021	Year over year	forecast
			comparison
6,166.6	6,170.0	100%	100%
433.8	548.0	+114.1	±0.0
7.0%	8.9%	+1.9 points	±0.0 points
867.4	668.0	(199.4)	±0.0
14.1%	10.8%	(3.3) points	±0.0 points
548.8	497.0	(51.8)	±0.0
987.5	1,600.0	162%	100%
34.7	97.0	+62.2	±0.0
3.5%	6.1%	+2.6 points	±0.0 points
4.3	76.0	+71.6	±0.0
0.4%	4.8%	+4.4 points	±0.0 points
(29.6)	32.0	+61.6	±0.0
1,574.9	1,730.0	110%	100%
26.6	95.0	+68.3	±0.0
1.7%	5.5%	+3.8 points	±0.0 points
(21.4)	76.0	+97.4	±0.0
(1.4)%	4.4%	+5.8 points	±0.0 points
(17.5)	21.0	+38.5	±0.0
8,729.1	9,500.0	109%	100%
495.1	740.0	+244.8	±0.0
5.7%	7.8%	+2.1 points	±0.0 points
850.2	820.0	(30.2)	±0.0
9.7%	8.6%	(1.1) points	±0.0 points
501.6	550.0	+48.3	±0.0

*1 "Five sectors total" are presented as the consolidated total less the total of Astemo and listed subsidiaries. It includes others and corporate items & eliminations.

Supplemental Information for Consolidated Financial Results for the First Quarter of Fiscal 2021

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5. Financial Results and Forecast by Business Segments セグメント別業績

5.1. IT Segment*1 ITセグメント

(Billions of yen)
	Q1 FY2020	Q1 FY2021	Year over year
Revenues (Total)	430.1	442.8	103%
Front Business*2	291.2	302.2	104%
Services & Platforms*3	172.8	173.0	100%
Adjusted operating income (Total)	38.2	43.6	+5.3
Adjusted operating income ratio	8.9%	9.8%	+0.9 points
Front Business	24.5	30.7	+6.3
	8.4%	10.2%	+1.8 points
Services & Platforms	10.0	11.0	+1.0
	5.8%	6.4%	+0.6 points
EBIT (Total)	38.0	44.1	+6.0
EBIT ratio	8.8%	10.0%	+1.2 points
Front Business	25.7	31.2	+5.5
	8.8%	10.3%	+1.5 points
Services & Platforms	8.8	11.4	+2.6
	5.1%	6.6%	+1.5 points

			Previous
FY2020	FY2021	Year over year	forecast
			comparison
2,048.7	2,200.0	107%	105%
1,414.2	1,440.0	102%	100%
790.3	890.0	113%	100%
269.4	263.0	(6.4)	±0.0
13.2%	12.0%	(1.2) points	(0.5) points
176.7	180.0	+3.3	±0.0
12.5%	12.5%	±0.0 points	±0.0 points
73.5	92.0	+18.5	±0.0
9.3%	10.3%	+1.0 points	±0.0 points
244.8	246.0	+1.1	±0.0
12.0%	11.2%	(0.8) points	(0.5) points
167.8	178.0	+10.2	±0.0
11.9%	12.4%	+0.5 points	±0.0 points
59.3	78.0	+18.7	±0.0
7.5%	8.8%	+1.3 points	±0.0 points

Adjusted EBITA (Total)	38.7	44.0	+5.2
Adjusted EBITA ratio	9.0%	9.9%	+0.9 points
EBITDA (Total)	65.6	69.5	+3.8
ROIC

272.4	287.5	+15.0	±0.0
13.3%	13.1%	(0.2) points	(0.6) points
352.5	378.0	+25.4	±0.0
17.8%	12.7%	(5.1) points	(0.3) points

*1 Figures for each subsegment include intersegment transactions.

*2 System integration, sales, maintenance and related services of software and hardware for financial, public, enterprise and social infrastructure (power, rail, telecommunication, etc.) sectors, consulting, etc.

*3 Sales, maintenance and services of control systems, server, storage, related software, etc.

Supplemental Information for Consolidated Financial Results for the First Quarter of Fiscal 2021

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