Annual Report 2012 2012 Ended March 31, Year DYNAMIC for TRANSFORMATION GROWTH GLOBAL

HITACHI AnnualReport2012 HITACHI Annual Report 2012 Year ended March 31, 2012 DYNAMIC TRANSFORMATION FOR GLOBAL GROWTH Printed in Japan Contents Corporate Data (As of March 31, 2012) 1 Dynamic Transformation for Global Growth 2 To Our Shareholders 10 Financial Highlights Corporate Name OurShareholders To 12 Segment Information Hitachi, Ltd. (Kabushiki Kaisha Hitachi Seisakusho) 14 Review of Operations 14 Information & Telecommunication Systems 16 Power Systems URL 18 Social Infrastructure & Industrial Systems http://www.hitachi.com/ 20 Electronic Systems & Equipment 22 Construction Machinery Principal Offi ce 24 High Functional Materials & Components 26 Automotive Systems 6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo, 100-8280, Japan 28 Components & Devices 30 Digital Media & Consumer Products Founded 32 Financial Services 1910 (Incorporated in 1920) Financial Highlights 32 Others 34 Research and Development 35 Intellectual Property Number of Employees 36 CSR Management 323,540 38 Corporate Governance 40 Board of Directors Number of Shares Issued 41 Executive Offi cers Common Stock: 4,637,785,317 shares 42 Financial Section 42 Five-Year Summary 43 Operating and Financial Review Number of Shareholders 48 Consolidated Balance Sheets 418,528 50 Consolidated Statements of Operations Segment Information 51 Consolidated Statements of Equity Administrator of Shareholders’ Register 54 Consolidated Statements of Cash Flows 55 Corporate Data Tokyo Securities Transfer Agent Co., Ltd. 6-2, Otemachi 2-chome, Chiyoda-ku, Tokyo, 100-0004, Japan Cautionary Statement Certain statements found in this document may constitute “forward-looking statements” as defi ned in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” refl ect manage- Stock Exchange Listings ment’s current views with respect to certain future events and fi nancial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” Tokyo, Osaka, Nagoya, Fukuoka*, Sapporo* and New York* “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future * Hitachi,Ltd. delisted its American Depositary Shares from the New York Stock Exchange on April 27, events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to 2012 and its common stock from the Fukuoka Stock Exchange and Sapporo Securities Exchange on differ materially from those projected or implied in the “forward-looking statements” and from historical May 18, 2012. andDevelopment/ Research trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as Intellectual Property such statements speak only as of the date of this document. Factors that could cause actual results to differ materially from those projected or implied in any “for- Independent Registered Public Accounting Firm ward-looking statement” and from historical trends include, but are not limited to: • economic conditions, including consumer spending and plant and equipment investment in Ernst & Young ShinNihon LLC Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the major industrial sectors Hitachi serves, including, without limitation, the information, electronics, automotive, construction and fi nancial sectors; • exchange rate fl uctuations of the yen against other currencies in which Hitachi makes signifi cant Investor Relations Contacts sales or in which Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and the euro; JAPAN • uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term fi nancing; • uncertainty as to general market price levels for equity securities, declines in which may require Hitachi, Ltd. Hitachi to write down equity securities that it holds; • the potential for signifi cant losses on Hitachi’s investments in equity method affi liates; 6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo, 100-8280 • increased commoditization of information technology products and digital media-related products and intensifying price competition for such products, particularly in the Digital Media & Consumer TEL: +81-3-3258-1111 E-mail: [email protected] Products segments; • uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technologies on a timely and cost-effective basis and to achieve market acceptance for such products; Management Structure • rapid technological innovation; U.S.A. • the possibility of cost fl uctuations during the lifetime of, or cancellation of, long-term contracts for which Hitachi uses the percentage-of-completion method to recognize revenue from sales; Hitachi America, Ltd. • fl uctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or 50 Prospect Avenue, Tarrytown, NY 10591 shortages of materials, parts and components; • fl uctuations in product demand and industry capacity; TEL: +1-914-333-2987 E-mail: [email protected] • uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fl uctuations in product demand, exchange rates and/or price of raw materials or shortages of materials, parts and components; • uncertainty as to Hitachi’s ability to achieve the anticipated benefi ts of its strategy to strengthen its U.K. Social Innovation Business; • uncertainty as to the success of restructuring efforts to improve management effi ciency by divest- Hitachi Europe Ltd. ing or otherwise exiting underperforming businesses and to strengthen competitiveness; • uncertainty as to the success of cost reduction measures; Whitebrook Park, Lower Cookham Road, Maidenhead Berkshire SL6 8YA • general socioeconomic and political conditions and the regulatory and trade environment of coun- tries where Hitachi conducts business, particularly Japan, Asia, the United States and Europe, TEL: +44-1628-585714 including, without limitation, direct or indirect restrictions by other nations on imports and differ- ences in commercial and business customs including, without limitation, contract terms and conditions and labor relations; • uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may Financial Section/ CHINA Corporate Data not control, with other corporations in the design and development of certain key products; • uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, partic- Hitachi (China) Ltd. ularly those related to electronics and data processing technologies; • uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which Beijing Fortune Bldg. 18F, 5 Dong San Huan Bei-Lu, Chao Yang District, the Company, its subsidiaries or its equity method affi liates have become or may become parties; • the possibility of incurring expenses resulting from any defects in products or services of Hitachi; Beijing 100004 • the possibility of disruption of Hitachi’s operations by earthquakes, tsunamis or other natural disasters; TEL: +86-10-6539-9139 • uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confi dential information or that of its customers; • uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its signifi cant employ- ee benefi t-related costs; and • uncertainty as to Hitachi’s ability to attract and retain skilled personnel. The factors listed above are not all-inclusive and are in addition to other factors contained in other materials published by Hitachi. Hitachi, Ltd. Annual Report 2012 55 Dynamic Transformation for Global Growth Hitachi will promote global development of its Social Innovation Business, which supplies advanced social infrastructure linked by information technology (IT), thereby achieving a Dynamic Transformation for Global Growth, while contributing solutions to urgent global issues concerning social infrastructure. Hitachi, Ltd. Annual Report 2012 1 To Our Shareholders To Our Shareholders To Financial Highlights Segment Information Overview This fi scal year marks the fi nal year of our Fiscal 2012 Mid-term Management Plan, which was Intellectual Property Research and Development/ Research devised in May 2010. Under this plan, Hitachi aims to achieve growth by focusing on our Social Innovation Business and to strengthen its fi nancial base by stabilizing profi tability. In 2011, a series of major events had a significant impact not only on the global and Japanese economies but also on the management of the Hitachi Group. These events included the Great East Japan Earthquake, fl oods in Thailand, economic turmoil in Europe stemming from the fi nancial crisis, and a slowdown in emerging market growth rates. Nevertheless, Hitachi was able to steadily adhere to the Management Plan, thanks to the dedicated efforts of Management Structure our employees, the support of our shareholders, and the cooperation of our business partners. Of particular note was the fact that net income attributable to Hitachi, Ltd. reached

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