Hitachi : Quarterly Report (Second Quarter)

[Translation]

Quarterly Report

(The Second Quarter of 154th Business Term)

From July 1, 2022 to September 30, 2022

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 11, 2022

The Second Quarter of 154th Business Term (from July 1, 2022 to September 30, 2022)

Kabushiki Kaisha Hitachi Seisakusho

Hitachi, Ltd.

Keiji Kojima, President & CEO

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 …………………………………………………………………………………………………………	4
1. Risk Factors ………………………………………………………………………………………………………………	4
2. Management's Discussion and Analysis of Consolidated Financial Condition, Results of Operations and Cash Flows …	4
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, 2021	September 30, 2022	March 31, 2022
Revenues	4,832,665	5,416,779	10,264,602
[2,465,228]	[2,846,963]
Income before income taxes	420,107	282,145	839,333
Net income attributable to Hitachi, Ltd.	322,444	172,515	583,470
stockholders	[200,213]	[135,357]
Comprehensive income attributable to Hitachi,	366,183	681,216	958,008
Ltd. stockholders
Total Hitachi, Ltd. stockholders' equity	3,824,891	4,851,087	4,341,836
Total equity	4,750,232	5,518,818	5,355,277
Total assets	12,879,522	13,617,345	13,887,502
Earnings per share attributable to Hitachi, Ltd.	333.67	180.01	603.75
stockholders, basic (yen)	[207.17]	[142.17]
Earnings per share attributable to Hitachi, Ltd.	333.24	179.83	602.96
stockholders, diluted (yen)
Total Hitachi, Ltd. stockholders' equity ratio (%)	29.7	35.6	31.3
Net cash provided by (used in) operating	161,468	233,652	729,943
activities
Net cash provided by (used in) investing	(951,429)	(72,339)	(1,048,866)
activities
Net cash provided by (used in) financing	646,539	(338,473)	202,739
activities
Cash and cash equivalents at end of period	880,966	866,016	968,827

(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.

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, 2021 and 2022, 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, 2022. The Hitachi Group is comprised of the Company, 770 consolidated subsidiaries, and 368 equity-method associates and joint-ventures.

Effective from April 1, 2022, the Company reclassified its reportable segments in seven segments: three sectors as "Digital Systems & Services," "Green Energy & Mobility" and "Connective Industries," Automotive Systems, two listed subsidiary groups as Hitachi Construction Machinery and Hitachi Metals, and Others.

Major business and the positioning of principal affiliated companies for each segment and changes in Business Unit (BU) of the Company and principal affiliated companies during the six months ended September 30, 2022 were as follows.

(As of September 30, 2022)

Main products and services	BU and principal affiliated companies
BU	Affiliated companies
Digital Systems & Services	Financial Institutions BU	[Consolidated subsidiaries]
Digital Solutions (System	Social Infrastructure Systems BU	Hitachi Information & Telecommunication
Integration, Consulting, Cloud	Services & Platforms BU	Engineering, Ltd.
Services), IT Products (Storage,		Hitachi Channel Solutions, Corp.
Servers), Software, ATMs		Hitachi Solutions, Ltd.
		Hitachi Systems, Ltd.
		GlobalLogic Worldwide Holdings, Inc.
		Hitachi Computer Products (America), Inc.
		Hitachi Digital LLC (Note 2)
		Hitachi Payment Services Private Limited
		Hitachi Vantara LLC
Green Energy & Mobility	Power Grids BU	[Consolidated subsidiaries]
Energy Solutions (Power Grids,	Energy BU	Hitachi-GE Nuclear Energy, Ltd.
Renewable Energy, Nuclear),	Nuclear Energy BU	Hitachi Plant Construction, Ltd.
Railway Systems	Railway Systems BU	Hitachi Power Semiconductor Device, Ltd.
		Hitachi Power Solutions Co., Ltd.
		Hitachi Energy Ltd
		Hitachi Rail Ltd.
Connective Industries	Building Systems BU	[Consolidated subsidiaries]
Building Systems (Elevators,	Industrial Digital BU	Hitachi Building Systems Co., Ltd.
Escalators),	Water & Environment BU	Hitachi Global Life Solutions, Inc.
Smart Life & Ecofriendly Systems		Hitachi High-Tech Corporation
(Home Appliances, Air		Hitachi Industrial Equipment Systems Co.,
Conditioners),		Ltd.
Measurement and Analytical		Hitachi Industrial Products, Ltd.
Systems (Medical and Bio,		Hitachi Industry & Control Solutions, Ltd.
Semiconductor, Industry),		Hitachi Plant Services Co., Ltd.
Industry & Distribution Solutions,		Hitachi Elevator (China) Co., Ltd.
Water & Environment Solutions,		Hitachi Industrial Holdings Americas, Inc.
Industrial Machinery		JR Technology Group, LLC
		Sullair, LLC
		[Equity-method associates]
		Hitachi Kokusai Electric Inc.
		Arcelik Hitachi Home Appliances B.V.
		Johnson Controls-Hitachi Air Conditioning
		Holding (UK) Ltd
Automotive Systems	－	[Consolidated subsidiaries]
Powertrain, Chassis, Advanced		Hitachi Astemo, Ltd.
Driver Assistance, Motorcycle		Hitachi Astemo Americas, Inc.
Systems
Hitachi Construction Machinery	－	[Consolidated subsidiaries]
Hydraulic Excavators, Wheel		－ (Note 3)
Loaders, Mining Machinery,
Maintenance and Services,
Construction Solutions, Mine
Management Systems
Hitachi Metals	－	[Consolidated subsidiaries]
Specialty Steel Products,		Hitachi Metals, Ltd.
Functional Components and
Equipment, Magnetic Materials and
Power Electronics Materials,
Wires, Cables and Related Products
Others	－	[Consolidated subsidiaries]
Optical Disk Drives, Property		Hitachi-LG Data Storage, Inc.
Management		Hitachi Real Estate Partners, Ltd.
		Hitachi America, Ltd.
		Hitachi Asia Ltd.
		Hitachi (China), Ltd.
		Hitachi Europe Ltd.
		Hitachi India Pvt. Ltd.

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