Outline of Consolidated Financial Results for the Year Ended March 31, 2024

[Fiscal 2023]

April 26, 2024

Tomomi Kato

Senior Vice President and Executive Officer, CFO Hitachi, Ltd.

© Hitachi, Ltd. 2024. All rights reserved.

Contents

  1. Key Messages
  2. FY2023 Results
  3. FY2024 Forecasts
  4. Performance by Business Segment
  5. Appendix

© Hitachi, Ltd. 2024. All rights reserved.

1

1. Key Messages

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2

Key Messages

FY2023 Results

Due to robust orders by DX/GX tailwind, Lumada business expansion, and enhancement of cash generating capability, three sectors achieved higher revenues and profits

Due to enhancement of cash flow management, record-high core FCF was achieved. ROIC was also improved

Three sectors

Consoli-

dated

Total

Revenues

+12% [+8%]

8.6 tn yen

Net Income

589.8 bn yen

(9)%

Adj. EBITA

+20% [+17%]

867.4 bn yen

Core FCF

571.4 bn yen

+155.0 bn yen

Margin

10.1%

Adj. EBITA

+0.6 pts

ROIC

8.7%

+1.1 pts

FY2024

Forecasts

Three sectors: Consolidated Total less the consolidated figures of Hitachi Astemo prior to be accounted by an equity-method affiliate

[ ]: Estimated YoY changes excl. FX impact. Net Income decreased due to the decrease of net gain on business reorganization and others

Mid-term Management Plan 2024 targets are almost expected to be achieved. Three sectors (excl. Hitachi Astemo) are expected higher revenues and profits. Core FCF is expected to be 1.5 trillion yen and to exceed the target by 0.3 trillion yen

Three

Sectors

(excl.

Hitachi

Astemo)

Consoli-

dated

Total

Revenues

+5% [+8%]

9.0 tn yen

Net Income

600.0 bn yen

+2%

Adj. EBITA

+20% [+23%]

1,030.5 bn yen

Core FCF

480.0 bn yen

(91.4) bn yen

Margin

11.5%

Adj. EBITA

+1.5 pts

ROIC

9.5%

+0.8 pts

Share

Holder

Returns

Three sectors (excl. Hitachi Astemo): Consolidated Total less equity in earnings of Hitachi Astemo as an affiliated company and consolidated figures of Hitachi Astemo prior to be accounted for using the equity method [ ]: Estimated YoY changes excl. FX impact. Core FCF is expected to decrease due to CAPEX increase and tax increase related to selling of cross shareholding

Share Holder Returns: Expansions are planned due to enhancement of cash generating capability and additional asset sales

Dividend: Expansion is planned due to enhancement of cash generating capability

Total amount (Cash out): 129.1 bn yen in FY2022 (+17.9 bn yen from FY2021) and 144.5 bn yen in FY2023 (+15.3 bn yen from FY2022) Annual dividend increases to 180 yen/share in FY2023 from 145 yen/share in FY2022 (Annual dividend increases +24% from FY2022)

Share Buyback: Planed due to additional asset sales

200.0 bn yen is planed in FY2024 (+100.0 bn yen from FY2023)

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3

2. FY2023 Results

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4

Highlights of Results (FY2023)

  • Three sectors grew revenues (YoY +12%) and improved Adj. EBITA (YoY +142.6 bn yen, +20%) and profitability
  • Core FCF increased in YoY due to enhancement of cash flow management, an increase in advances received in Hitachi Energy, and other gains

Billions of yen

Consolidated Total(*)

Three sectors(*)

Revenues

9,728.7

8,564.3

YoY

(11)%

[+8%](*)

+12%

Adj. EBITA

918.1

867.4

YoY

+33.5

+142.6

Adj. EBITA margin

9.4%

10.1%

YoY

+1.3 pts

+0.6 pts

Net income attributable

589.8

606.7

to Hitachi, Ltd. stockholders

YoY

(59.2)

(35.0)

EPS

634 yen

652 yen

YoY

(50) yen

(24) yen

Core free cash flows

571.4

Actual

FY2022

FY2023

YoY

+155.0

FX rate

(Average)

(Average)

ROIC

8.7%

US $

135 yen

145 yen

YoY

+1.1 pts

€

141 yen

157 yen

  1. Hitachi Astemo's revenue was 1,164.3 bn yen, Adj. EBITA was 50.6 bn yen and Net income was (16.8) bn yen in Consolidated Total
  1. Three sectors: Consolidated Total less the consolidated figures for Hitachi Astemo as a subsidiary before conversion to an equity-method affiliate
  1. [ ]: Estimated YoY changes excl. FX impact

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5

Factors Affecting Year over Year Changes in Revenues and Adj. EBITA (FY2023 Consolidated Total)

Revenues

Billions of yen

⊕ Hitachi Energy

⊕ Front Business (Digital Systems & Services)

⊕ IT Services (Digital Systems & Services)

Adj. EBITA

Billions of yen

⊕ Changes in business scale ⊕ Selling price change

⊖ Soaring material prices

⊖ Depreciation and amortization, Business development investment ⊖ Structure reinforcement corresponding to demand increase, etc.

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Financial Position and Cash Flows

Summary of Consolidated Financial Position

As of

As of

Difference from

Billions of yen

March 31, 2023

March 31, 2024

March 31, 2023

Total assets

12,501.4

12,221.2

(280.1)

Cash and cash equivalents

833.2

705.3

(127.9)

Trade receivables and contract assets

2,874.9

2,991.3

+116.3

Total liabilities

7,165.8

6,361.6

(804.1)

Interest-bearing debt

2,213.3

1,180.0

(1,033.3)

Total Hitachi, Ltd. stockholders' equity

4,942.8

5,703.7

+760.8

Non-controlling interests

392.7

155.8

(236.8)

Cash Conversion Cycle

58.1 days

54.2 days

(3.9) days

Total Hitachi, Ltd. stockholders' equity ratio

39.5%

46.7%

+7.2 pts

D/E ratio

0.41 times

0.20 times

(0.21) pts

Summary of Consolidated Statement of Cash Flows

Billions of yen

FY2022

FY2023

YoY

Cash flows from operating activities

827.0

956.6

+129.5

Cash flows from investing activities

151.0

(131.5)

(282.6)

Free cash flows

978.1

825.0

(153.0)

Core free cash flows

416.4

571.4

+155.0

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7

Revenues by Market (FY2023)

North

ASEAN,

Overseas

Japan

Europe

China

India, other

Other areas

America

Revenues

Billions of yen

areas

Digital Systems &

1,731.2

344.4

235.4

34.7

193.1

59.6

867.4

Services

YoY

+11%

+7%

+6%

(21)%

±0%

+12%

+4%

Green Energy &

426.0

665.0

1,009.2

204.2

262.2

485.3

2,626.2

Mobility

YoY

±0%

+45%

+22%

+16%

+11%

+40%

+28%

Connective Industries

1,519.7

267.1

204.8

746.3

284.2

35.6

1,538.2

YoY

+3%

+3%

+2%

+3%

+5%

(6)%

+3%

Three sectors

3,500.3

1,277.2

1,450.0

988.6

767.3

580.6

5,064.0

YoY

+8%

+22%

+16%

+4%

+7%

+32%

+15%

Ratio

41%

15%

17%

11%

9%

7%

59%

Hitachi Astemo

273.0

305.6

100.8

166.1

229.4

89.3

891.3

YoY

(44)%

(33)%

(37)%

(45)%

(42)%

(25)%

(38)%

Consolidated Total

3,773.3

1,582.9

1,550.8

1,154.7

996.7

669.9

5,955.3

YoY(*)

(8)%

(16)%

+1%

(14)%

(23)%

(6)%

(12)%

Ratio

39%

16%

16%

12%

10%

7%

61%

  1. YoY of Consolidated Total is compared to the previous year's results including Hitachi Construction Machinery and Hitachi Metals

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8

3. FY2024 Forecasts

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Hitachi Ltd. published this content on 26 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 14:36:14 UTC.