HITACHI FINANCIAL HIGHLIGHTS · PDF file61.71 65.96 36.91 Cash dividends ... 615,345 662,248 655,410 723,477 740,135 712,672 585,718 574,642 ... 897.42 901.71 922.73 971.63 994.66

HITACHI FINANCIAL HIGHLIGHTS 2000 Year ended March 31, 2000

Contents

Notes1. Hitachi’s fiscal year ends March 31.

2. Not all data have been audited.

3. Hitachi, Ltd. made a free distribution of 153,642,327 shares of its common stock on May 21, 1990 to shareholders of record on March

31, 1990 on the basis of one share for each twenty shares held. Figures for net income per share are after retroactive adjustment for the

free distribution.

4. Effective April 1, 1993, Hitachi, Ltd. adopted Statement of Financial Accounting Standards (SFAS) No. 109, “Accounting for Income Taxes,”

and has reported the cumulative effect of the change in the method of accounting for income taxes in the 1994 consolidated statement

of income. The cumulative effect of this change in accounting for income taxes of ¥2,970 million is determined as of April 1, 1993.

5. All figures are consolidated figures of Hitachi, Ltd. (the Company) and its subsidiaries, except where specifically stated otherwise.

6. The Company has not applied SFAS No. 115, “Accounting for Certain Investments in Debt and Equity Securities.”

7. In accordance with SFAS No. 109, the Company recognized the effect on deferred tax assets and liabilities of a change in income tax

rates in Japan, which resulted in a decrease in net income (loss) by ¥54,363 million and ¥27,053 million for the years ended March 31,

1999 and 1998.

8. The Company changed the method of carrying the investment in its certain affiliated company from cost to equity in 2000. Figures for

1996 to 1999 have also been restated using the same method.

Highlights of the Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Corporate Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Main Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Eleven-Year Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Consolidated Statements of Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Segment Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Analysis of Operating Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Stock Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Major Consolidated Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

1

Highlights of the YearHitachi, Ltd. and SubsidiariesYears ended March 31, 1999 and 2000

Millions of yen

1999 2000

For the year:Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥7,977,374 ¥8,001,203Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34,074) 174,364Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (336,916) 16,922Cash dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,358 28,371

At year-end:Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,715,982 9,837,198Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,908,293 2,876,212

Yen

Per share data:Net income (loss):

Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥(100.94) ¥5.07Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (100.94) 4.99

Net income (loss) per ADS (representing 10 shares):Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,009) 51Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,009) 50

Cash dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5 6.0Cash dividends declared per ADS (representing 10 shares) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 60Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 871.30 861.68

Notes: 1. The Company has not implemented SFAS No. 115 in accounting for certain investments in debt and equity securities. If implemented, the balance of stockholders’ equity asof March 31, 2000 and 1999 would have been ¥2,987,689 million and ¥3,006,015 million, respectively, and stockholders’ equity per share would have been ¥895.08 and¥900.57, respectively.

2. In accordance with SFAS No. 109, the Company recognized the effect on deferred tax assets and liabilities of a change in income tax rates in Japan, which resulted in adecrease in net income (loss) by ¥54,363 million for the year ended March 31, 1999.

3. The Company changed the method of carrying its investment in a certain affiliated company from cost to equity in 2000. Accordingly, figures for 1999 have been restated.

2

Corporate DataAs of March 31, 2000

Corporate Name Hitachi, Ltd. (Kabushiki Kaisha Hitachi Seisakusho)

Principal Office 6, Kanda-Surugadai 4-chome,Chiyoda-ku, Tokyo 101-8010, Japan

Founded 1910 (Incorporated in 1920)

Number of Consolidated In Japan 735Subsidiaries Overseas 312

Number of Employees 337,911

Common Stock Per Value ¥50

Authorized 10,000,000,000 shares

Issued 3,337,900,251shares

Number of Shareholders 358,114

Internet Address http://www.hitachi.co.jp

3

Main Products and Services

Information Systems & Electronics: Mainframe Computers, Software, Computer Terminalsand Peripherals, Systems Integration, PCs, Magnetic Disks, Telephone Exchanges, DVD Drives,Semiconductors, Display Tubes, LCDs, Semiconductor Manufacturing Equipment, Test andMeasurement Equipment, Medical Electronics Equipment

Power & Industrial Systems: Nuclear Power Plants, Hydroelectric Power Plants, Thermal PowerPlants, Control Equipment, Compressors, Rolling Mill Equipment, Plant Engineering andConstruction, Elevators, Escalators, Air-Conditioning Equipment, Industrial Robots, Rolling Stock,Automotive Equipment, Construction Machinery

Consumer Products: Room Air Conditioners, Refrigerators, Washing Machines, MicrowaveOvens, Vacuum Cleaners, Heating Appliances, Kitchen Appliances, Lighting Fixtures, TVs, VCRs,Mobile Phones, Audiotapes, Videotapes, Batteries, Optical Storage Media, Floppy Disks

Materials: Synthetic Resin Materials and Products, Printed Circuit Boards, Ceramic Materials,Special Steels, Rolls for Rolling Mills, Malleable Cast-Iron Products, Forged and Cast-SteelProducts, Pipe Fittings, Wire and Cable, Copper Products, Rubber Products

Services & Other: General Trading, Financial Services, Transportation, Property Management,Printing

Net Sales by Industry Segments

■ Information Systems & Electronics 32%

■ Power & Industrial Systems 24%

■ Consumer Products 9%

■ Materials 13%

■ Services & Other 22%

Note: Net sales by industry segments include intersegment transactions.

4

Eleven-Year SummaryYears ended March 31

1990 1991 1992

For the year:

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥7,077,855 ¥7,736,961 ¥7,765,545

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,420,138 5,881,571 5,921,552

Other areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,657,717 1,855,390 1,843,993

Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,023,533 5,417,159 5,488,738

Selling, general and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,553,218 1,813,383 1,924,780

Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501,104 506,419 352,027

Income (loss) before income taxes, minority interests

and cumulative effect of accounting change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529,990 562,073 374,882

Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,963 230,185 127,611

Capital investment (Property, plant and equipment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 658,153 781,488 757,389

Depreciation (Property, plant and equipment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407,152 448,124 503,980

R&D expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429,470 490,708 519,525

Per share data:

Net income (loss) Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 69.18 ¥ 70.81 ¥ 38.96

Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61.71 65.96 36.91

Cash dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.00 11.00 11.00

Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 833.37 858.71 890.64

Note: The Company changed the method of carrying the investment in its certain affiliated company from cost to equity in 2000. Figures for 1996 to 1999 have also been restatedusing the same method.

5

Millions of yen1993 1994 1995 1996 1997 1998 1999 2000

¥7,536,166 ¥7,400,205 ¥7,592,266 ¥8,123,810 ¥8,523,100 ¥8,416,834 ¥7,977,374 ¥8,001,203

5,736,540 5,699,533 5,768,963 6,020,922 6,070,552 5,805,111 5,533,554 5,657,571

1,799,626 1,700,672 1,823,303 2,102,888 2,452,548 2,611,723 2,443,820 2,343,632

5,438,158 5,311,992 5,393,757 5,828,887 6,250,895 6,230,044 6,052,345 5,898,756

1,875,847 1,874,824 1,893,919 1,962,341 1,975,039 1,977,783 1,959,103 1,928,083

222,161 213,389 304,590 332,582 297,166 209,007 (34,074) 174,364

234,744 228,363 283,643 349,992 264,795 173,261 (221,431) 79,235

77,289 65,279 113,912 143,135 89,802 5,012 (336,916) 16,922

615,345 662,248 655,410 723,477 740,135 712,672 585,718 574,642

479,943 496,132 521,435 556,671 543,560 550,393 547,022 541,253

501,191 484,237 491,481 493,788 503,508 510,878 496,728 432,342

Yen

¥ 23.59 ¥ 19.92 ¥ 34.66 ¥ 43.00 ¥ 26.95 ¥ 1.50 ¥(100.94) ¥ 5.07

22.68 19.27 33.02 40.48 25.97 1.45 (100.94) 4.99

11.00 11.00 11.00 11.00 11.00 11.00 5.50 6.00

897.42 901.71 922.73 971.63 994.66 982.18 871.30 861.68

6

Consolidated Balance SheetsYears ended March 31

1990 1991 1992

Assets:

Current assets:

Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,853,734 ¥1,648,460 ¥1,495,794

Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324,784 384,909 487,303

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,178,518 2,033,369 1,983,097

Trade receivables:

Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433,037 481,258 493,303

Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,161,228 1,352,641 1,327,165

Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,355,007 1,597,129 1,750,263

Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263,112 286,559 295,727

Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,390,902 5,750,956 5,849,555

Noncurrent receivables and restricted funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134,868 155,680 172,427

Investments and advances, including affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . 358,736 420,178 436,498

Property, plant and equipment:

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,918 251,755 280,241

Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 872,128 1,017,059 1,149,894

Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,042,851 3,356,157 3,650,784

Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,942 89,474 106,136

4,205,839 4,714,445 5,187,055

Less accumulated depreciation 2,496,948 2,728,719 3,017,948

Net property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,708,891 1,985,726 2,169,107

Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,689 213,581 230,323

¥7,805,086 ¥8,526,121 ¥8,857,910


7

Millions of yen1993 1994 1995 1996 1997 1998 1999 2000

¥1,368,270 ¥1,331,605 ¥1,620,936 ¥1,627,716 ¥ 1,309,949 ¥ 1,199,540 ¥1,237,527 ¥1,357,432

639,108 806,699 582,785 587,457 757,800 708,152 551,839 568,634

2,007,378 2,138,304 2,203,721 2,215,173 2,067,749 1,907,692 1,789,366 1,926,066

418,489 403,311 402,024 462,685 411,459 369,838 307,354 295,526

1,347,967 1,396,149 1,440,006 1,662,631 1,876,678 1,897,410 1,878,272 1,908,692

1,605,178 1,523,593 1,572,259 1,707,159 1,576,751 1,626,684 1,470,847 1,416,878

295,658 335,093 357,922 389,214 409,750 428,912 415,815 366,617

5,674,670 5,796,450 5,975,932 6,436,862 6,342,387 6,230,536 5,861,654 5,913,779

185,130 169,170 180,464 161,795 188,473 195,546 176,403 160,583

436,614 438,488 436,603 547,584 570,987 696,939 680,389 658,846

297,504 297,889 317,604 334,488 345,322 363,771 369,701 380,076

1,237,429 1,392,564 1,434,417 1,514,113 1,635,937 1,703,708 1,730,333 1,731,561

3,844,842 4,064,912 4,246,645 4,538,128 4,817,314 5,074,698 5,116,062 4,887,088

78,733 42,575 51,599 90,481 117,290 99,755 54,453 71,184

5,458,508 5,797,940 6,050,265 6,477,210 6,915,863 7,241,932 7,270,549 7,069,909

3,254,674 3,505,071 3,739,284 4,055,425 4,356,366 4,595,800 4,662,942 4,515,160

2,203,834 2,292,869 2,310,981 2,421,785 2,559,497 2,646,132 2,607,607 2,554,749

247,523 234,114 237,638 270,039 339,463 381,492 389,929 549,241

¥8,747,771 ¥8,931,091 ¥9,141,618 ¥9,838,065 ¥10,000,807 ¥10,150,645 ¥9,715,982 ¥9,837,198

8

1990 1991 1992

Liabilities and Stockholders’ Equity:

Current liabilities:

Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 781,590 ¥ 861,859 ¥ 906,002

Current installments of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,790 53,056 113,990

Trade payables:

Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317,389 335,938 318,625

Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 611,276 723,182 636,634

Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 553,679 587,664 627,604

Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157,179 155,717 96,214

Advances received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434,234 495,183 572,081

Employees’ deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127,864 125,310 128,874

Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284,906 356,423 341,619

Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,314,907 3,694,332 3,741,643

Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 886,798 891,022 975,605

Retirement and severance benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493,955 520,108 564,932

Other liabilities (Note 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —— —— ——

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,695,660 5,105,462 5,282,180

Minority interests (Note 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 548,591 609,518 657,779

Stockholders’ equity (Note 2):

Common stock of ¥50 par value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,913 269,747 270,917

Capital surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357,775 410,381 436,753

Legal reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,021 66,519 72,163

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,911,144 2,093,902 2,173,995

Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15,018) (29,408) (35,877)

Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,560,835 2,811,141 2,917,951

¥7,805,086 ¥8,526,121 ¥8,857,910

Notes: 1. Other liabilities at March 31, 1994 to 2000 consist of long-term payables for property, deferred tax liabilities under SFAS No. 109 and other. See note 4 on page 1.2. SFAS No. 115, “Accounting for Certain Investments in Debt and Equity Securities,” effective for the fiscal year ended March 31, 1995, has not been implemented in the

consolidated balance sheets as allowed by the U.S. Securities and Exchange Commission. If implemented, unrealized holding gains (net) of the securities in the scope ofSFAS No. 115 amounting to ¥222,390 million as of March 31, 2000, were included in measurement of these investments, and the balances of “Minority interests” and“Stockholders’ equity,” were increased by ¥20,329 million and ¥111,475 million, respectively.

3. The Company changed the method of carrying the investment in its certain affiliated company from cost to equity in 2000. Figures for 1996 to 1999 have also been restatedusing the same method.

9

Millions of yen1993 1994 1995 1996 1997 1998 1999 2000

¥ 825,060 ¥ 794,250 ¥ 823,402 ¥ 882,605 ¥ 994,469 ¥ 1,103,217 ¥1,045,543 ¥1,046,571

103,103 107,316 83,848 150,746 187,022 214,064 114,268 259,099

273,520 245,175 212,007 212,789 140,067 132,159 97,863 98,058

614,237 640,963 710,397 823,280 945,450 944,112 907,641 974,721

628,361 664,065 674,653 734,036 732,070 728,741 694,399 706,647

70,567 84,671 106,793 130,974 118,685 89,715 63,241 76,969

573,583 544,449 578,137 500,889 411,752 395,674 418,360 382,085

134,163 132,454 138,972 131,088 41,297 20,750 9,368 8,503

332,221 362,471 361,665 398,680 365,164 411,745 412,065 372,988

3,554,815 3,575,814 3,689,874 3,965,087 3,935,976 4,040,177 3,762,748 3,925,641

990,113 1,025,305 1,011,996 1,203,353 1,244,612 1,287,532 1,478,168 1,482,810

601,243 629,242 648,493 659,510 671,794 682,871 723,028 699,385

—— 81,625 82,651 79,315 84,699 92,494 85,630 81,554

5,146,171 5,311,986 5,433,014 5,907,265 5,937,081 6,103,074 6,049,574 6,189,390

661,442 659,940 675,227 696,101 743,738 769,168 758,115 771,596

270,918 273,266 276,041 278,178 281,684 281,735 281,735 281,738

436,819 440,517 445,260 480,718 486,695 492,272 494,782 499,081

78,161 84,147 89,955 95,377 101,146 104,370 105,905 106,885

2,209,261 2,231,914 2,303,612 2,439,015 2,483,489 2,443,886 2,083,936 2,066,085

(55,001) (70,679) (81,491) (58,589) (33,026) (43,860) (58,065) (77,577)

2,940,158 2,959,165 3,033,377 3,234,699 3,319,988 3,278,403 2,908,293 2,876,212

¥8,747,771 ¥8,931,091 ¥9,141,618 ¥9,838,065 ¥10,000,807 ¥10,150,645 ¥9,715,982 ¥9,837,198

10

Consolidated Statements of IncomeYears ended March 31

1990 1991 1992

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥7,077,855 ¥7,736,961 ¥7,765,545

Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,023,533 5,417,159 5,488,738

Gross Profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,054,322 2,319,802 2,276,807

Selling, general and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,553,218 1,813,383 1,924,780

Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501,104 506,419 352,027

Other income:

Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151,488 173,692 168,991

Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,829 9,072 8,351

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,760 22,153 10,456

177,077 204,917 187,798

Other deductions:

Interest and discount charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,047 129,886 140,282

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,144 19,377 24,661

148,191 149,263 164,943

Income (Loss) before income taxes, minority interests


Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281,309 290,450 219,336

Income (Loss) before minority interests


Minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,718 41,438 27,935

Income (Loss) before cumulative effect of accounting change . . . . . . . . . . . . . . . . . . . . . 210,963 230,185 127,611

Cumulative effect of accounting change (Note 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —— —— ——

Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,963 230,185 127,611

Notes: 1. Cumulative effect to April 1, 1993 of the application of SFAS No. 109, “Accounting for Income Taxes.” See note 4 on inside cover.2. In accordance with SFAS No. 109, the effect of the change in the normal tax rate on deferred tax assets, liabilities and related valuation allowance, that was charged to

income, amounted to ¥58,489 million and ¥29,761 million for the years ended March 31, 1999 and 1998, respectively.3. The Company changed the method of carrying the investment in its certain affiliated company from cost to equity in 2000. Figures for 1996 to 1999 have also been restated

using the same method.

11

Millions of yen1993 1994 1995 1996 1997 1998 1999 2000

¥7,536,166 ¥7,400,205 ¥7,592,266 ¥8,123,810 ¥8,523,100 ¥8,416,834 ¥7,977,374 ¥8,001,203

5,438,158 5,311,992 5,393,757 5,828,887 6,250,895 6,230,044 6,052,345 5,898,756

2,098,008 2,088,213 2,198,509 2,294,923 2,272,205 2,186,790 1,925,029 2,102,447

1,875,847 1,874,824 1,893,919 1,962,341 1,975,039 1,977,783 1,959,103 1,928,083

222,161 213,389 304,590 332,582 297,166 209,007 (34,074) 174,364

126,176 94,434 74,550 51,126 37,632 41,084 40,178 35,380

9,167 6,863 8,003 7,482 8,113 8,881 7,060 6,662

3,563 3,675 13,319 53,720 43,557 112,255 1,144 30,059

138,906 104,972 95,872 112,328 89,302 162,220 48,382 72,101

113,839 78,113 74,998 63,375 60,669 59,635 59,028 52,015

12,484 11,885 41,821 31,543 61,004 138,331 176,711 115,215

126,323 89,998 116,819 94,918 121,673 197,966 235,739 167,230

234,744 228,363 283,643 349,992 264,795 173,261 (221,431) 79,235

138,916 146,953 153,443 165,764 138,495 142,693 108,449 47,502

95,828 81,410 130,200 184,228 126,300 30,568 (329,880) 31,733

18,539 13,161 16,288 41,093 36,498 25,556 7,036 14,811

77,289 68,249 113,912 143,135 89,802 5,012 (336,916) 16,922

—— 2,970 —— —— —— —— —— ——

77,289 65,279 113,912 143,135 89,802 5,012 (336,916) 16,922

12

Consolidated Statements of Cash FlowsYears ended March 31

1990 1991 1992

Cash flows from operating activities:

Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 210,963 ¥ 230,185 ¥ 127,611

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407,152 448,124 503,980

Impairment loss for long-lived assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —— —— ——

Comulative effect of accounting change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —— —— ——

Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31,788) (17,761) (7,358)

Gain on sale of investments and subsidiaries’ common stock . . . . . . . . . . . . . . . . . . . . (2,394) (21,255) (16,102)

Loss on disposal of rental assets and other property . . . . . . . . . . . . . . . . . . . . . . . . . . . —— —— ——

Income applicable to minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,718 41,438 27,935

(Increase) decrease in receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (314,289) (213,413) 101,428

(Increase) decrease in inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (83,352) (258,290) (160,465)

(Increase) decrease in prepaid expenses and other current assets . . . . . . . . . . . . . . . (20,081) (7,078) (9,992)

Increase (decrease) in payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,562 144,218 (122,775)

Increase (decrease) in accrued expenses and retirement and severance benefits . . . 102,519 60,560 84,764

Decrease in accrued income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,280) (1,052) (59,267)

Increase (decrease) in other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,874 30,735 13,022

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,505 (7,193) 27,764

Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461,109 429,218 510,545

Cash flows from investing activities:

(Increase) decrease in short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,301 (60,125) (109,527)

Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (649,812) (743,399) (781,748)

Proceeds from disposition of rental assets and other property . . . . . . . . . . . . . . . . . . . . . 58,565 47,719 58,126

Payment for acquisition, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (47,130) —— ——

Proceeds from sale of investments and subsidiaries’ common stock . . . . . . . . . . . . . . . . 3,039 26,271 24,178

Purchase of investments and subsidiaries’ common stock . . . . . . . . . . . . . . . . . . . . . . . . (22,559) (45,745) (17,823)

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,093) (27,619) (36,929)

Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (614,689) (802,898) (863,723)

Cash flows from financing activities:

Increase (decrease) in short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (69,601) 96,357 50,743

Proceeds from long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,580 128,017 211,066

Payments on long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,281) (44,971) (54,414)

Proceeds from sale of common stock by subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,173 46,459 42,821

Dividends paid to stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27,221) (37,783) (35,925)

Dividends paid to minority stockholders of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,911) (9,428) (9,756)

Purchase and retirement of common shares by subsidiaries . . . . . . . . . . . . . . . . . . . . . . . —— —— ——

Net cash provided by financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351,739 178,651 204,535

Effect of exchange rate changes on cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . 17,247 (10,245) (4,023)

Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215,406 (205,274) (152,666)

Cash and cash equivalents at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,638,328 1,853,734 1,648,460

Cash and cash equivalents at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,853,734 ¥1,648,460 ¥1,495,794


13

Millions of yen1993 1994 1995 1996 1997 1998 1999 2000

¥ 77,289 ¥ 65,279 ¥ 113,912 ¥ 143,135 ¥ 89,802 ¥ 5,012 ¥ (336,916) ¥ 16,922

479,943 496,132 521,435 556,671 543,560 550,393 547,022 541,253

—— —— —— —— 44,289 35,504 2,740 9,310

—— 2,970 —— —— —— —— —— ——

(21,977) (8,721) (16,488) (30,154) (61,099) (6,383) (12,187) (67,179)

(2,007) (3,229) (5,879) (40,746) (24,262) (117,998) (3,938) (36,215)

—— —— —— —— 24,200 12,078 69,996 19,921

18,539 13,161 16,288 41,093 36,498 25,556 7,036 14,811

48,713 (77,936) (50,604) (295,990) (197,337) 13,175 (2,549) (107,685)

120,492 57,969 (67,092) (102,694) 162,473 (53,703) 127,802 (26,273)

(8,370) (947) (12,029) (15,145) 4,335 (12,847) (1,133) (9,931)

(93,370) 7,589 41,581 104,944 994 (7,254) (45,274) 78,728

45,045 71,704 37,272 57,730 (3,428) 5,132 19,400 3,846

(24,921) 14,913 23,307 21,141 (14,461) (28,880) (25,135) 15,884

19,737 18,290 (1,618) 25,620 (98,271) 6,892 25,338 (41,385)

25,867 31,056 20,668 7,828 (20,569) (5,936) 16,677 39,443

684,980 688,230 620,753 473,433 486,724 420,741 388,879 451,450

(137,859) (163,313) 225,843 (8,216) (169,644) 49,462 153,382 (15,155)

(639,323) (593,462) (651,577) (717,085) (750,066) (690,419) (619,342) (576,929)

58,283 32,100 93,230 61,925 49,075 32,334 26,427 133,806

—— —— —— —— —— —— —— ——

4,380 7,673 12,801 33,665 34,760 144,127 16,542 67,971

(9,290) (18,894) (15,518) (38,914) (43,751) (165,898) (13,837) (40,463)

(21,077) 3,322 (502) (4,201) 9,123 (7,932) (13,721) (4,821)

(744,886) (732,574) (335,723) (672,826) (870,503) (638,326) (450,549) (435,591)

(51,609) (8,800) 52,132 17,964 60,490 97,057 (1,845) 43,155

159,692 149,188 130,490 332,559 201,985 279,866 375,344 315,408

(119,468) (76,951) (126,321) (118,716) (168,597) (223,517) (230,273) (194,038)

270 357 1,138 3,460 5,305 7,423 701 9,046

(35,906) (35,937) (36,005) (36,337) (36,520) (36,600) (18,412) (27,762)

(9,482) (9,603) (9,746) (9,805) (10,599) (11,838) (11,722) (12,033)

—— —— —— —— —— —— —— (7,946)

(56,503) 18,254 11,688 189,125 52,064 112,391 113,793 125,830

(11,115) (10,575) (7,387) 17,048 13,948 (5,215) (14,136) (21,784)

(127,524) (36,665) 289,331 6,780 (317,767) (110,409) 37,987 119,905

1,495,794 1,368,270 1,331,605 1,620,936 1,627,716 1,309,949 1,199,540 1,237,527

¥1,368,270 ¥1,331,605 ¥1,620,936 ¥1,627,716 ¥1,309,949 ¥1,199,540 ¥1,237,527 ¥1,357,432

14

Segment InformationYears ended March 31, 1998, 1999 and 2000

Millions of yen1998 1999 2000

Sales Information Systems & Electronics . . . . . . . . . . . . . . . . . . . . ¥ 3,373,532 ¥3,106,377 ¥3,148,888

Power & Industrial Systems . . . . . . . . . . . . . . . . . . . . . . . . . . 2,543,181 2,406,966 2,372,610

Consumer Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 928,447 897,241 904,992

Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,473,461 1,338,819 1,346,292

Services & Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,414,879 2,123,300 2,146,177

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,733,500 9,872,703 9,918,959

Eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,316,666) (1,895,329) (1,917,756)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,416,834 7,977,374 8,001,203

Operating income Information Systems & Electronics . . . . . . . . . . . . . . . . . . . . 63,375 (90,362) 52,325

(loss) Power & Industrial Systems . . . . . . . . . . . . . . . . . . . . . . . . . . 93,554 30,313 41,790

Consumer Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,061) (6,375) 19,949

Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,119 27,886 49,887

Services & Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,918 51,474 53,781

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259,905 12,936 217,732

Eliminations & Corporate items . . . . . . . . . . . . . . . . . . . . . . . (50,898) (47,010) (43,368)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209,007 (34,074) 174,364

Notes: 1. Net sales by industry segment include intersegment transactions.2. This information is disclosed in accordance with a ministerial ordinance under the Securities and Exchange Law of Japan.

Industry Segments

15


Japan Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥5,805,111 ¥5,533,554 ¥5,657,571

Percentage of net sales (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 69 71

Outside Japan Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,051,035 895,457 897,664


North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 881,847 838,848 767,241


Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531,453 539,741 484,744


Other Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147,388 169,774 193,983


Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,611,723 2,443,820 2,343,632


Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,416,834 7,977,374 8,001,203


Sales

Japan Outside customer sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥6,636,772 ¥6,325,140 ¥6,410,934

Intersegment transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,053,839 914,527 951,918

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,690,611 7,239,667 7,362,852

Other Areas Outside customer sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,780,062 1,652,234 1,590,269

Intersegment transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275,592 264,487 320,993

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,055,654 1,916,721 1,911,262

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,746,265 9,156,388 9,274,114

Eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,329,431) (1,179,014) (1,272,911)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,416,834 7,977,374 8,001,203

Operating income (loss)

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232,839 3,116 183,954

Other Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,093 6,825 38,925

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264,932 9,941 222,879

Eliminations & Corporate items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (55,925) (44,015) (48,515)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209,007 (34,074) 174,364

Geographic Segments

Sales by Market

16

1990 1991 1992

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥7,078 ¥7,737 ¥7,766Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501 506 352Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 230 128Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,024 5,417 5,489

Ratio to net sales (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.0% 70.0% 70.7%Selling, general and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,553 1,813 1,925

Ratio to net sales (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.9% 23.4% 24.8%Operating income (loss) to net sales (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1% 6.5% 4.5%Return on sales (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0% 3.0% 1.6%Return on equity (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7% 8.6% 4.5%Return on assets (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7% 2.7% 1.4%Capital investment (Property, plant and equipment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 658 781 757Depreciation (Property, plant and equipment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407 448 504Free cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (154) (374) (353)R&D expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429 491 520

Ratio to net sales (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.1% 6.3% 6.7%

Notes: 1. Figures may not agree due to rounding.2. Rerutn on sales = Net income (loss) / Net sales.3. Rerutn on equity = Net income (loss) / Average shareholder’s equity.4. Rerutn on assets = Net income (loss) / Total assets as of March 31.5. Free cash flows = Cash flows from operating activities + Cash flows from investing activities.6. The Company changed the method of carrying the investment in its certain affiliated company from cost to equity in 2000. Figures for 1996 to 1999 have also been restated


Cost of sales and SG&A expenses

■ Cost of sales■ SG&A expenses

Return on assets and Return on equity

Return on assets Return on equity

Capital investment (Property, plant and equipment)

■ Net sales (left scale)■ Net income (loss) (right scale)

Net sales and Net income (loss)

Analysis of Operating ResultsYears ended March 31

-4,000

-2,000

0

2,000

4,000

6,000

8,000

10,000

-400

-300

0

100

200

300

400

500

0099989796959493929190

2,000

4,000

6,000

8,000

0099989796959493929190

-15

-10

-5

0

5

10

0099989796959493929190

200

400

600

800

0099989796959493929190

(Billions of yen) (Billions of yen)

(%)

(Billions of yen)

(Billions of yen)

17

Billions of yen1993 1994 1995 1996 1997 1998 1999 2000

¥7,536 ¥7,400 ¥7,592 ¥8,124 ¥8,523 ¥8,417 ¥7,977 ¥8,001222 213 305 333 297 209 (34) 174

77 65 114 143 90 5 (337) 175,438 5,312 5,394 5,829 6,251 6,230 6,052 5,899

72.2% 71.8% 71.0% 71.8% 73.3% 74.0% 75.9% 73.7%1,876 1,875 1,894 1,962 1,975 1,978 1,959 1,928

24.9% 25.3% 25.0% 24.2% 23.2% 23.5% 24.6% 24.1%2.9% 2.9% 4.0% 4.1% 3.5% 2.5% (0.4)% 2.2%1.0% 0.9% 1.5% 1.8% 1.0% 0.0% (4.2)% 0.2%2.6% 2.2% 3.8% 4.5% 2.7% 0.2% (10.9)% 0.6%0.9% 0.7% 1.2% 1.5% 0.9% 0.0% (3.5)% 0.2%

615 662 655 723 740 713 586 575480 496 521 557 544 550 547 541(60) (44) 285 (199) (384) (218) (62) 16501 484 491 494 504 511 497 4326.7% 6.5% 6.5% 6.1% 5.9% 6.1% 6.2% 5.4%

Free cash flows andDepreciation (Property, plant and equipment)

■ Free cash flows■ Depreciation

Operating income (loss) to net sales Return on sales

R&D expenditure and R&D expenditure to net sales

■ R&D expenditure (left scale)R&D expenditure to net sales (right scale)

-2

0

2

4

6

8

0099989796959493929190-5

-4

0

1

2

3

4

0099989796959493929190

-400

-200

0

200

400

600

0099989796959493929190

100

200

300

400

500

600

0099989796959493929190

2

4

6

8

10

12

(%)

(Billions of yen)

(%)

(Billions of yen) (%)

655521285491

18

1990 1991 1992

Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 97 ¥ 130 ¥ 140Interest coverage (Times) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.46 5.33 3.67Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,391 5,751 5,850Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,315 3,694 3,742Current ratio (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162.63% 155.67% 156.34%Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 828 915 1,020Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 887 891 976Total debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,715 1,806 1,996Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,561 2,811 2,918Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,805 8,526 8,858Debt / equity ratio (Times) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.67 0.64 0.68Stockholders’ equity ratio (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.81% 32.97% 32.94%Asset turnover (Times) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.91 0.91 0.88Fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,709 1,986 2,169Fixed assets turnover (Times) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.14 3.90 3.58

Notes: 1. Interest coverage =

2. “Fixed assets” represents the net carrying amounts of property, plant and equipment.3. Current ratio = Current assets / Current liabilities as of March 31.4. Stockholders’ equity ratio = Stockholders’ equity / Total assets as of March 31.5. Asset turnover = Net sales / Total assets as of March 31.6. Fixed assets turnover = Net sales / Fixed assets as of March 31.7. The Company changed the method of carrying the investment in its certain affiliated company from cost to equity in 2000. Figures for 1996 to 1999 have also been restated


Asset turnover Fixed assets turnover

Current ratio

■ Interest expense (left scale)Interest coverage (right scale)

Interest expense and Interest coverage

Income (loss) before income taxes and minority interests + Interest expenseInterest expense

-100

-50

0

50

100

150

200

0099989796959493929190-4

-2

0

2

4

6

8

0

150

160

170

0099989796959493929190

0

0.8

0.9

1.0

00999897969594939291900

3

4

5

0099989796959493929190

(Billions of yen) (Times)

(Times)

(%)

(Times)

19

Billions of yen1993 1994 1995 1996 1997 1998 1999 2000

¥ 114 ¥ 78 ¥ 75 ¥ 63 ¥ 61 ¥ 60 ¥ 59 ¥ 523.06 3.92 4.78 6.52 5.36 3.91 (2.75) 2.52

5,675 5,796 5,976 6,437 6,342 6,231 5,862 5,9133,555 3,576 3,690 3,965 3,936 4,040 3,763 3,926

159.63% 162.10% 161.95% 162.34% 161.14% 154.21% 155.78% 150.64%928 902 907 1,033 1,181 1,317 1,160 1,306990 1,025 1,012 1,203 1,245 1,288 1,478 1,482

1,918 1,927 1,919 2,237 2,426 2,605 2,638 2,7882,940 2,959 3,033 3,235 3,320 3,278 2,908 2,8768,748 8,931 9,142 9,838 10,001 10,151 9,716 9,837

0.65 0.65 0.63 0.69 0.73 0.79 0.91 0.9733.61% 33.13% 33.18% 32.88% 33.20% 32.30% 29.93% 29.24%

0.86 0.83 0.83 0.83 0.85 0.83 0.82 0.812,204 2,293 2,311 2,422 2,559 2,646 2,608 2,555

3.42 3.23 3.29 3.35 3.33 3.18 3.06 3.13

Debt / equity ratio Shareholders’ equity ratio

0

0.6

0.7

0.8

0.9

0099989796959493929190

1.0

0

25

30

35

0099989796959493929190

(times) (%)

20

Stock Information

Common Stock Price Movement (Tokyo Stock Exchange)

Price Range of Hitachi Common Stock1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Price range High . . . . . . ¥ 1,670*1,740 ¥ 1,720 ¥ 1,270 ¥ 873 ¥ 979 ¥ 1,120 ¥ 1,140 ¥ 1,180 ¥ 1,390 ¥ 1,015 ¥ 1,709

Low . . . . . . . 1,490*1,250 1,020 750 670 729 799 781 961 877 532 814

Price at the end of March . 1,590 1,230 785 848 930 900 1,040 1,100 970 877 1,219

Nikkei Stock Average (225) . . 29,980 26,292 19,345 18,591 19,111 16,139 21,406 18,003 16,527 15,836 20,337

Notes: 1. Figures marked * are the highest and lowest prices during the ex rights period accompanying the Company’s free distribution of new shares.2. Common stock prices are those of Hitachi, Ltd.

Price/Earnings Ratio, Price/Cash Flow Ratio and Price/Book Value RatioYears ended March 31

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Net income (loss) per share

(Diluted) (¥) . . . . . . . . . . . . . . . . . . . 61.71 65.96 36.91 22.68 19.27 33.02 40.48 25.97 1.45 (100.94) 4.99

Price/earnings ratio (Times) . . . . . . . 25.8 18.6 21.3 37.4 48.3 27.3 25.7 42.4 669.0 —— 244.3

Free cash flows per share (¥) . . . . . (43.68) (105.72) (99.92) (16.95) (12.55) 80.65 (55.88) (108.18) (61.36) (17.40) 4.47

Price/free cash flow ratio (Times) . . —— —— —— —— —— 11.16 —— —— —— —— 272.71

Stockholders’ equity per share (¥) . 833.37 858.71 890.64 897.42 901.71 922.73 971.63 994.66 982.18 871.30 861.68

Price/book value ratio (Times) . . . . . 1.91 1.43 0.88 0.94 1.03 0.98 1.07 1.11 0.99 1.01 1.41

Cash dividends declared per share (¥) . . . 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 5.50 6.00

Notes: 1. Net income (loss) per share is based on common stock and common stock equivalents of Hitachi, Ltd.2. Figures for net income (loss) per share are after retroactive adjustment for the free distribution. See note 3 on inside cover.3. Stockholders’ equity per share is based on common stock of Hitachi, Ltd.4. Free cash flows per share is based on common stock and common stock equivalents of Hitachi, Ltd.5. The Company changed the method of carrying the investment in its certain affiliated company from cost to equity in 2000. Figures for 1996 to 1999 have also been restated


Issue date Type Amount Coupon (%) Conversion Price Redemption Date

1/27/1987 CB #5 ¥120,000 million 1.7 ¥1,012.40 3/29/2002

8/ 2 /1988 CB #6 ¥120,000 million 1.3 ¥1,875.20 9/30/2003

5/16/1989 CB #7 ¥250,000 million 1.4 ¥1,694.30 9/30/2004

Equity-Linked Financings

0

500

1,000

1,500

2,000

2,500

3,000

00999897969594939291900

5,000

10,000

15,000

20,000

25,000

30,000

0099989796959493929190

Hitachi’s Common Stock Price at the end of March(left scale)Nikkei Stock Average (225) (right scale)

■ Price range

(Yen) (Yen)

21

Depositary forAmerican DepositaryReceipts:

Transfer Agent forthe Shares:

Composition ofShareholdersAs of March 31, 2000

Major StockholdersAs of March 31, 2000

Numbers of Shares held Percentage of Shares Held

The Sumitomo Trust and Banking Co., Ltd. 142,615,230 4.27%

Nippon Life Insurance Company 131,129,472 3.93%

The Chase Manhattan Bank, N.A. London 118,549,800 3.55%

State Street Bank and Trust Company 109,209,061 3.27%

NATS CUMCO 108,681,580 3.26%

The Dai-Ichi Mutual Life Insurance Company 92,594,178 2.77%

Hitachi Employees’ Shareholding Association 88,725,952 2.66%

The Toyo Trust and Banking Company, Limited 70,004,565 2.10%

The Industrial Bank of Japan, Ltd. 68,100,646 2.04%

The Mitsui Trust and Banking Co., Ltd. 67,830,500 2.03%

Note: NATS CUMCO is the nominee name for the aggregate of the Company’s American Depositary Reciepts (ADRs) holders.

Financial Institutions and Securities Firms 41.4%

Foreign Investors 28.9%

Individuals 25.6%

Others 4.1%

Governments 0.0%

TOKYO SECURITIES TRANSFER AGENT CO., LTD.5-1, Marunouchi, 1-chome, Chiyoda-ku, Tokyo, 100-0005, JapanTel. +81-3-3212-4601

Citibank, N.A.111 Wall Street20th Floor/Zone 7New York, NY10005, U.S.A.Tel. +1-877-248-4237

Overseas StockExchange Listings

Luxembourg, Frankfurt, Amsterdam, Paris and New York stock exchanges

Japanese StockExchange Listings

Tokyo, Osaka, Nagoya, Fukuoka, Kyoto, and Sapporo stock exchanges

22

Issued Capital PercentageName of Subsidiary (Millions of yen) of Ownership Line(s) of Business

Babcock-Hitachi Kabushiki Kaisha 5,000 100 Boilers, Chemical Plant Equipment

Hitachi Air Conditioning Systems Co., Ltd. 10,000 100 Air Conditioners, Refrigeration Equipment,

Housing Equipment and Environmental Control

Systems

Hitachi Cable, Ltd. 25,940 53 Wire and Cable, Copper Products

Hitachi Chemical Co., Ltd. 15,024 56 Electric Insulating Materials, Synthetic Resin

Materials, Housing Equipment

Hitachi Construction Machinery Co., Ltd. 22,199 55 Construction Machinery

Hitachi Denshi, Ltd. 5,021 64 Broadcasting Equipment, Radio Communications

Equipment, Visual Communications Equipment

Hitachi Electronics Engineering Co., Ltd. 2,275 61 Automation Systems, Information Equipment,

Semiconductor Manufacturing Equipment

Hitachi Hokkai Semiconductor, Ltd. 2,400 100 Semiconductors

Hitachi Hometec, Ltd. 800 100 Heating and Warming Appliances

Hitachi Kiden Kogyo, Ltd. 2,613 57 Cranes, Water Treatment Plants, Factory

Automation Equipment

Hitachi Maxell, Ltd. 12,179 53 Magnetic Tapes, Magnetic and Optical Disks,

Dry Batteries

Hitachi Media Electronics Co., Ltd. 500 100 Electronic Parts for Displays and DVDs

Hitachi Medical Corporation 13,884 65 X-Ray Apparatus, Medical Electronics Equipment

Hitachi Metals, Ltd. 26,283 55 Steel and Special Steels, Forged and Cast-Steel

Products, Pipe Fittings

Hitachi Telecom Technologies, Ltd. 900 100 Telecommunications Equipment

Hitachi Tohbu Semiconductor, Ltd. 1,280 100 Semiconductors

Hitachi Tokyo Electronics Co., Ltd. 600 100 Semiconductors, Semiconductor Manufacturing

Equipment

Hitachi Via Mechanics, Ltd. 1,650 100 Machine Tools, Printing Machines

Japan Servo Co., Ltd. 2,547 53 Precision Electric Motors, Control Equipment

Major Consolidated SubsidiariesAs of March 31, 2000

Japan/Manufacturing

23


Chuo Shoji, Ltd. 1,650 100 Maintenance, Sales and Lease of Real Estate

Hitachi Building Systems Co., Ltd. 5,105 100 Maintenance, Sales and Installation of Elevators

and Escalators

Hitachi Credit Corporation 7,649 53 Installation and Lease Financing of OA

Equipment, Consumer Product Sales

Hitachi Electronics Services Co., Ltd. 5,000 100 Installation and Maintenance of Computers and

Communications Equipment

Hitachi Engineering & Services Co., Ltd. 1,950 100 Plant Engineering, Maintenance of Electrical and

Electronic Equipment

Hitachi Engineering Co., Ltd. 1,650 100 Systems, Equipment and Software for FA, OA

and Telecommunications, Plant Engineering

Hitachi Information Systems, Ltd. 13,062 51 Software Development, Data Processing

Services, Computer Equipment Sales

Hitachi Keisho, Ltd. 1,000 100 Sales of Daily Necessities and Foods

Hitachi Life Corporation 1,000 100 Sales and Lease of Land and Buildings

Hitachi Mobile Co., Ltd. 500 100 Sales of Automotive and Information Equipment

Hitachi Plant Engineering & Construction Co., Ltd. 7,319 56 Design and Construction of Power Facilities

Hitachi Printing Co., Ltd. 700 98 Printing and Publication Services

Hitachi Semiconductor and Devices Sales Co., Ltd. 2,000 100 Sales of Electronic Components

Hitachi Service & Engineering (East), Ltd. 600 100 Sales of Industrial Equipment and Components,

Engineering

Hitachi Service & Engineering (West), Ltd. 600 100 Sales of Industrial Equipment and Components,

Engineering

Hitachi Software Engineering Co., Ltd. 31,816 53 Systems and Software Development

Hitachi Techno Engineering Co., Ltd. 1,000 100 Plant Engineering, Maintenance of Industrial

Machinery

Hitachi Transport System, Ltd. 16,802 61 Transportation and Warehousing Services

Nissei Sangyo Co., Ltd. 5,438 58 Sales of Scientific Instruments, Information

Systems and Electronic Components

Note: Hitachi Mobile Co., Ltd. changed its name from Hitachi Auto Systems Co., Ltd. as of October 21, 1999.

Japan/Engineering, Sales, and Service

24


Hitachi Automotive Products (USA), Inc. US$32.7 million 100 Manufacture and Sales of Automotive

Equipment

Hitachi Computer Products (America), Inc. US$14.0 million 100 Manufacture and Sales of Magnetic Disk

Drives and Magnetic Tape Units

Hitachi Computer Products (Asia) Corp. P.P2,005.3 million 100 Manufacture and Sales of Small Hard Disk

Drives and Magnetic Heads

Hitachi Computer Products (Europe) S.A. FFr100.0 million 100 Manufacture and Sales of Magnetic Disk

Drives

Hitachi Consumer Products (S) Pte. Ltd. S$18.7 million 100 Manufacture and Sales of Television Sets,

Audio Equipment and Vacuum Cleaners

Hitachi Electronic Devices (Singapore) Pte. Ltd. S$70.0 million 85 Manufacture and Sales of Display Tubes

Hitachi Electronic Devices (USA), Inc. US$140.9 million 100 Manufacture and Sales of Color Picture Tubes

Hitachi Home Electronics (America), Inc. US$40.0 million 100 Manufacture of Consumer Goods

Hitachi Home Electronics (Europe) Ltd. £13.0 million 100 Manufacture and Sales of Consumer Products

Hitachi Nippon Steel Semiconductor S$440 million 54 Manufacture and Sales of Semiconductors

Singapore Pte. Ltd.

Hitachi Semiconductor (Europe) GmbH DM500.0 million 100 Manufacture and Sales of Semiconductors

Hitachi Semiconductor (Malaysia) Sdn. Bhd. M$84.0 million 90 Manufacture and Sales of Semiconductors

Shanghai Hitachi Household Appliances Co., Ltd. US$30.6 million 60 Manufacture and Sales of Air Conditioners and

Other Home Appliances

Taiwan Hitachi Co., Ltd. NT$2,334.4 million 62 Manufacture and Sales of Air Conditioners

Abroad/Manufacturing


Hitachi America, Ltd. US$220.3 million 100 Sales of Plants, Computers and Mutimedia and

Industrial Components

Hitachi Asia Ltd. S$24.0 million 100 Sales of Plants, Computers and Electronic and


Hitachi (China), Ltd. US$60.7 million 100 Strategic Planning for the Chinese Market

Hitachi Data Systems Holding Corp. US$246.8 million 100 Sales and Service of Computers and

Peripheral Subsystems

Hitachi Europe Ltd. £10.0 million 100 Sales of Plants, Computers and Electronic and


Hitachi Semiconductor (America) Inc. US$57.0 million 100 Sales, Design and Marketing of Semiconductors

Abroad/Engineering, Sales, and Service

For further information, please contact :Investor RelationsHitachi, Ltd.Phone +81-3-3258-2055Facsimile+81-3-3258-5480

Printed in JapanThis Financial Highlights was printed on 100% recycled paper.

Documents

HITACHI FINANCIAL HIGHLIGHTS · PDF file61.71 65.96 36.91 Cash dividends ... 615,345 662,248 655,410 723,477 740,135 712,672 585,718 574,642 ... 897.42 901.71 922.73 971.63 994.66