Hitachi : Supplemental Material (PDF format, 862kBytes)

Supplemental Information for Consolidated Financial Results for Fiscal 2020

[Year Ended March, 2021]

2020年度 連結決算 補足情報

［2021年3月期］

April 28, 2021

Hitachi, Ltd.

株式会社日立製作所

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

Supplemental Information for Consolidated Financial Results for the Fiscal 2020

1

1. Summary of Consolidated Statement of Profit or Loss	連結損益計算書
(Billions of yen)				FY2019					FY2020				Previous
	Q1 FY2019		Q2 FY2019	Q3 FY2019	Q4 FY2019		Q1 FY2020	Q2 FY2020	Q3 FY2020	Q4 FY2020		Year over year	forecast	FY2021	Year over year
					comparison
Revenues	2,032.5		2,188.7	2,122.8	2,423.0	8,767.2	1,594.2	2,165.7	2,218.9	2,750.1	8,729.1	100%	105%	9,500.0	109%
Adjusted operating income*1	124.3		172.8	148.4	216.2	661.8	58.3	122.4	136.1	178.2	495.1	(166.7)	+75.1	740.0	+244.8
Adjusted operating income ratio	6.1%		7.9%	7.0%	8.9%	7.5%	3.7%	5.7%	6.1%	6.5%	5.7%	(1.8) points	+0.6 points	7.8%	+2.1 points
Adjusted EBITA*2	129.2		177.7	153.4	225.6	686.0	64.3	150.1	155.5	200.2	570.2	(115.8)	+66.7	827.0	+256.7
Adjusted EBITA ratio	6.4%		8.1%	7.2%	9.3%	7.8%	4.0%	6.9%	7.0%	7.3%	6.5%	(1.3) points	+0.4 points	8.7%	+2.2 points
EBIT*3	182.5		108.0	(235.5)	128.6	183.6	340.4	45.7	117.3	346.7	850.2	+666.6	+170.2	820.0	(30.2)
EBIT ratio	9.0%		4.9%	(11.1)%	5.3%	2.1%	21.4%	2.1%	5.3%	12.6%	9.7%	+7.6 points	+1.5 points	8.6%	(1.1) points
EBITDA*4	286.5		213.2	(126.7)	245.8	619.0	439.1	173.4	242.8	487.6	1,343.0	+724.0	+169.0	1,370.0	+26.9
Income from continuing operations, before income taxes	181.8		107.1	(236.8)	128.1	180.2	339.7	44.5	114.7	345.4	844.4	+664.1	+173.4	800.0	(44.4)
Income taxes	(41.2)		(49.4)	125.9	(86.5)	(51.2)	(112.8)	(23.9)	(47.3)	(141.0)	(325.2)	(274.0)	(25.2)	(180.0)	+145.2
Income tax allocation rate	22.7%		46.1%	53.2%	67.5%	28.4%	33.2%	53.8%	41.3%	40.8%	38.5%	+10.1 points	(6.2) points	22.5%	(16.0) points
Income from continuing operations	140.6		57.6	(110.9)	41.6	129.0	226.8	20.5	67.3	204.4	519.1	+390.1	+148.1	620.0	+100.8
Loss from discontinued operations*5	(0.4)		(0.3)	(0.3)	(0.5)	(1.7)	(0.3)	(0.3)	0.0	0.0	(0.6)	+1.0	+0.3	0.0	+0.6
Net income	140.2		57.2	(111.3)	41.0	127.2	226.4	20.2	67.3	204.4	518.5	+391.2	+148.5	620.0	+101.4
Net income attributable to Hitachi, Ltd. stockholders	120.3		68.9	(134.1)	32.4	87.5	223.2	27.5	57.1	193.7	501.6	+414.0	+131.6	550.0	+48.3
Earnings per share	124.58 yen		71.44 yen	(138.91) yen	33.60 yen	90.71 yen	231.13 yen	28.47 yen	59.13 yen	200.55 yen	519.29 yen	+428.58 yen	+136.25 yen	569.17 yen	+49.88 yen
Return on Invested Capital (ROIC)*6						9.4%					6.4%	(3.0) points		8.3%	+1.9 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 Fiscal 2020

2

2. Summary of Consolidated Statement of Cash Flows	連結キャッシュ・フロー計算書
(Billions of yen)			FY2019					FY2020				Previous
											Year over year	forecast	FY2021	Year over year
	Q1 FY2019	Q2 FY2019	Q3 FY2019	Q4 FY2019		Q1 FY2020	Q2 FY2020	Q3 FY2020	Q4 FY2020			comparison
Cash flows from operating activities	78.8	126.8	102.1	253.0	560.9	153.7	60.6	211.9	366.7	793.1	+232.2	+243.1	750.0	(43.1)
Cash flows margin from operating activities	3.9%	5.8%	4.8%	10.4%	6.4%	9.6%	2.8%	9.5%	13.3%	9.1%	+2.7 points	+2.5 points	7.9%	(1.2) points
Cash flows from investing activities	(105.1)	(101.9)	(284.9)	(33.8)	(525.8)	357.4	(1,061.3)	(62.1)	307.2	(458.8)	+66.9
Free cash flows	(26.2)	24.8	(182.7)	219.2	35.0	511.2	(1,000.6)	149.7	673.9	334.2	+299.1
Core free cash flows*1	(19.8)	14.7	12.6	127.8	135.4	80.7	(30.0)	131.1	238.0	419.8	+284.4	+219.8	300.0	(119.8)
3. Summary of Consolidated Statement of Financial Position 連結財政状態計算書
(Billions of yen)	As of Mar. 31,	As of Mar. 31,	Change from
2020	2021	Mar. 31, 2020
Total assets	9,930.0	11,852.8	+1,922.7
Trade receivables and contract assets	2,260.2	2,734.4	+474.2
Total liabilities	5,663.3	7,394.6	+1,731.2
Interest-bearing debt	1,485.0	2,397.3	+912.3
Total Hitachi, Ltd. stockholders' equity	3,159.9	3,525.5	+365.5
Non-controlling interests	1,106.7	932.7	(174.0)
Cash Conversion Cycle	74.2 days	81.0 days	+6.8 days
Total Hitachi, Ltd. stockholders' equity ratio	31.8%	29.7%	(2.1) points
D/E ratio (Including non-controlling interests)	0.35 times	0.54 times	+0.19 times
4. Return on Invested Capital (ROIC)
(Billions of yen)	FY2019	FY2020	Year over year
ROIC	9.4%	6.4%	(3.0) points
Return	533.4	405.2	(128.1)
Invested Capital	5,695.9	6,303.6	+607.7

*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 Fiscal 2020

3

5. Financial Results by Five Sectors and Listed Subsidiaries	5セクター・上場子会社別の業績
(Billions of yen)				FY2019 (Revised)*2						FY2020				Previous
		Q1 FY2019	Q2 FY2019	Q3 FY2019	Q4 FY2019			Q1 FY2020	Q2 FY2020	Q3 FY2020	Q4 FY2020		Year over year	forecast	FY2021	Year over year
						comparison
		(Revised)*2	(Revised)*2	(Revised)*2	(Revised)*2
Five sectors total*1	Revenues	1,407.9	1,559.2	1,539.0	1,816.7		6,323.0	1,269.3	1,788.9	1,820.5	2,275.3	7,154.2	113%	106%	7,770.0	109%
(IT/ Energy/ Industry/	Adjusted operating income	88.8	141.1	117.6	189.1		536.7	62.9	119.7	125.2	160.5	468.5	(68.2)	+77.5	645.0	+176.4
Mobility/ Smart Life/
Adjusted operating income ratio	6.3%	9.1%	7.6%	10.4%		8.5%	5.0%	6.7%	6.9%	7.1%	6.5%	(2.0) points	+0.7 points	8.3%	+1.8 points
Automotive Systems)
EBIT	147.0	141.4	(263.2)	120.2		145.5	344.6	74.3	109.2	343.5	871.7	+726.2	+172.7	744.0	(127.7)
	EBIT ratio	10.4%	9.1%	(17.1)%	6.6%		2.3%	27.2%	4.2%	6.0%	15.1%	12.2%	+9.9 points	+1.9 points	9.6%	(2.6) points
	Net income attributable to
	109.0	94.8	(144.2)	29.0		88.7	225.0	43.5	55.9	194.6	519.1	+430.4	+133.1	529.0	+9.8
	Hitachi, Ltd. stockholders
Listed subsidiaries total*1	Revenues	624.6	629.4	583.7	606.3		2,444.1	324.9	376.8	398.3	474.8	1,574.9	64%	104%	1,730.0	110%
(Hitachi Construction	Adjusted operating income	35.5	31.6	30.8	27.0		125.1	(4.6)	2.6	10.8	17.7	26.6	(98.4)	(2.3)	95.0	+68.3
Machinery/
Adjusted operating income ratio	5.7%	5.0%	5.3%	4.5%		5.1%	(1.4)%	0.7%	2.7%	3.7%	1.7%	(3.4) points	(0.2) points	5.5%	+3.8 points
Hitachi Metals)
EBIT	35.4	(33.4)	27.6	8.4		38.0	(4.2)	(28.5)	8.1	3.2	(21.4)	(59.5)	(2.4)	76.0	+97.4
	EBIT ratio	5.7%	(5.3)%	4.7%	1.4%		1.6%	(1.3)%	(7.6)%	2.0%	0.7%	(1.4)%	(3.0) points	(0.1) points	4.4%	+5.8 points
	Net income attributable to
	11.2	(25.9)	10.1	3.3		(1.1)	(1.7)	(16.0)	1.1	(0.9)	(17.5)	(16.4)	(1.5)	21.0	+38.5
	Hitachi, Ltd. stockholders
	Revenues	2,032.5	2,188.7	2,122.8	2,423.0		8,767.2	1,594.2	2,165.7	2,218.9	2,750.1	8,729.1	100%	105%	9,500.0	109%
	Adjusted operating income	124.3	172.8	148.4	216.2		661.8	58.3	122.4	136.1	178.2	495.1	(166.7)	+75.1	740.0	+244.8
	Adjusted operating income ratio	6.1%	7.9%	7.0%	8.9%		7.5%	3.7%	5.7%	6.1%	6.5%	5.7%	(1.8) points	+0.6 points	7.8%	+2.1 points
Total
EBIT	182.5	108.0	(235.5)	128.6		183.6	340.4	45.7	117.3	346.7	850.2	+666.6	+170.2	820.0	(30.2)
	EBIT ratio	9.0%	4.9%	(11.1)%	5.3%		2.1%	21.4%	2.1%	5.3%	12.6%	9.7%	+7.6 points	+1.5 points	8.6%	(1.1) points
	Net income attributable to
	120.3	68.9	(134.1)	32.4		87.5	223.2	27.5	57.1	193.7	501.6	+414.0	+131.6	550.0	+48.3
	Hitachi, Ltd. stockholders
*1 "Five sectors total" is presented as the consolidated total less the total of listed subsidiaries. It includes others and corporate items & eliminations.
*2 Measurement & Analysis Systems (Hitachi High-Tech) is included in Smart Life segment from FY2020. "Revised" is presented as figures reflecting the change.

Supplemental Information for Consolidated Financial Results for the Fiscal 2020

4

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

6.1. IT Segment*1 ITセグメント

(Billions of yen)			FY2019 (Revised)*4					FY2020				Previous
	Q1 FY2019	Q2 FY2019	Q3 FY2019		Q4 FY2019		Q1 FY2020	Q2 FY2020	Q3 FY2020	Q4 FY2020		Year over year	forecast
					comparison
	(Revised)*4	(Revised)*4	(Revised)*4		(Revised)*4
Revenues (Total)	462.8	532.3	499.0		605.1	2,099.4	430.1	517.3	486.3	614.9	2,048.7	98%	104%
Front Business*2	299.1	369.3	332.6		430.1	1,431.1	291.2	362.7	330.6	429.7	1,414.2	99%	103%
Services & Platforms*3	196.3	206.3	204.0		219.7	826.4	172.8	199.2	189.9	228.3	790.3	96%	107%
Adjusted operating income (Total)	40.2	68.8	56.5		83.7	249.4	38.2	69.8	65.8	95.5	269.4	+20.0	37.4
Adjusted operating income ratio	8.7%	12.9%	11.3%		13.8%	11.9%	8.9%	13.5%	13.5%	15.5%	13.2%	+1.3 points	+1.4 points
Front Business	24.2	47.4	36.3		57.6	165.6	24.5	47.7	40.2	64.4	176.7	+11.1	+20.7
	8.1%	12.8%	10.9%		13.4%	11.6%	8.4%	13.1%	12.1%	15.0%	12.5%	+0.9 points	+1.1 points
Services & Platforms	12.6	17.7	18.1		21.4	69.8	10.0	17.7	18.8	27.1	73.5	+3.7	+9.5
	6.4%	8.6%	8.9%		9.8%	8.4%	5.8%	8.9%	9.9%	11.8%	9.3%	+0.9 points	+0.7 points
EBIT (Total)	43.5	62.3	52.3		56.2	214.4	38.0	59.7	63.9	83.1	244.8	+30.4	+37.8
EBIT ratio	9.4%	11.7%	10.5%		9.3%	10.2%	8.8%	11.6%	13.1%	13.5%	12.0%	+1.8 points	+1.5 points
Front Business	24.7	47.0	34.3		45.1	151.1	25.7	40.8	40.7	60.6	167.8	+16.7	+19.8
	8.3%	12.7%	10.3%		10.5%	10.6%	8.8%	11.2%	12.3%	14.1%	11.9%	+1.3 points	+1.1 points
Services & Platforms	17.0	11.5	15.5		3.6	47.6	8.8	16.2	16.6	17.7	59.3	+11.7	+8.3
	8.7%	5.6%	7.6%		1.7%	5.8%	5.1%	8.1%	8.8%	7.8%	7.5%	+1.7 points	+0.6 points
Adjusted EBITA (Total)	40.7	69.3	57.0		86.0	253.2	38.7	70.2	66.3	97.0	272.4	+19.1	+38.4
Adjusted EBITA ratio	8.8%	13.0%	11.4%		14.2%	12.1%	9.0%	13.6%	13.6%	15.8%	13.3%	+1.2 points	+1.4 points
EBITDA (Total)	69.5	88.8	78.4		90.0	326.9	65.6	83.0	91.3	112.4	352.5	+25.5	+39.5
ROIC						18.4%					17.8%	(0.6) points

FY2021 Year over year

2,100.0103%

1,440.0102%

890.0113%

263.0(6.4)

12.5%

(0.7) points

180.0+3.3

12.5%

±0.0 points

92.0+18.5

10.3%

+1.0 points

246.0+1.1

11.7%

(0.3) points

178.0+10.2

12.4%

+0.5 points

78.0+18.7

8.8%	+1.3 points

287.5+15.0

13.7%

+0.4 points

378.0+25.4

13.0%

(4.8) 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.

*4 "Revised" reflects the following changes: Former Hitachi Consulting Corporation, which was included in Front Business, has been included to Service & Platforms and former Defense Systems Business Unit, which was not included in Front Business or Service & Platforms, has been included in Front Business.

Supplemental Information for Consolidated Financial Results for the Fiscal 2020

5