6-K 1 k00337e6vk.txt FORM 6-K FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of February 2003 Commission File Number 1-8320 Hitachi, Ltd. ------------------------------------------------------------- (Translation of registrant's name into English) 6, Kanda-Surugadai 4-chome, Chiyoda-ku, Tokyo 101-8010, Japan ------------------------------------------------------------- (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F x Form 40-F --------- --------- Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): -------------- Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): -------------- Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No x --------- --------- If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- -------------- This report on Form 6-K contains the following: 1. Press release dated February 4, 2003 regarding consolidated financial results for the third quarter of fiscal 2002 2. Press release dated February 4, 2003 regarding integration and dissolution of content producer Hitachi Media Pro to strengthen solutions ability in Ubiquitous Platform Systems Group 3. Report on the Resolutions Adopted at the Extraordinary General Meeting of Shareholders SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Hitachi, Ltd. ------------------------------------- (Registrant) Date February 14, 2003 By ---------------------------- ------------------------------------- Kazuo Kumagai Executive Vice President and Director (HITACHI LOGO) NEWS RELEASE Inspire the Next FOR IMMEDIATE RELEASE Contacts: Japan: U.S.: Takafumi Ichinose Matt Takahashi Hitachi, Ltd. Hitachi America, Ltd. +81-3-3258-2056 +1-650-244-7902 takafumi_ichinose@hdq.hitachi.co.jp masahiro.takahashi@hal.hitachi.com Singapore: U.K.: Yuji Hoshino Kantaro Tanii Hitachi Asia Ltd. Hitachi Europe Ltd. +65-6231-2522 +44-(0)1628-585379 yhoshino@has.hitachi.com.sg kantaro.tanii@hitachi-eu.com Hitachi Announces Consolidated Financial Results for the Third Quarter Of Fiscal 2002 Tokyo, February 4, 2003 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced its consolidated financial results for the third quarter of fiscal 2002, which ended December 31, 2002. During the quarter, the outlook for the U.S. economy, which had remained resilient on the strength of consumer spending, became increasingly uncertain due to rising tensions over Iraq and to other factors. Meanwhile, the Japanese economy saw domestic demand continue to languish due to lackluster private-sector plant and equipment investment and soft personal spending. External demand, however, was relatively strong, backed by brisk exports from Japan to the U.S. and other Asian countries. Against this backdrop, net sales rose 5% year on year, to 1,921.0 billion yen (US$16,009 million). Hitachi posted operating income of 12.8 billion yen (US$107 million), reversing an operating loss of 69.2 billion yen (US$577 million) in the previous fiscal year's third quarter. This improvement was mainly due to lower fixed costs brought about by the structural reforms implemented in the previous fiscal year, as well as the results of the Corporate Innovation Initiative (CII), including the Procurement Renewal Project. - more - - 2 - By segment, Information & Telecommunication Systems sales rose 10% year on year, to 409.6 billion yen (US$3,414 million) as disk array subsystems and hard disk drives posted strong sales. The segment recorded operating income of 1.8 billion yen (US$15 million), a 15.3 billion yen (US$128 million) improvement from the 13.5 billion yen (US$113 million) loss recorded in the same period of the previous fiscal year. This improvement reflects growth in sales of disk array subsystems and hard disks drives, in addition to benefits from structural reforms, particularly in the telecommunication network sector. In Electronic Devices, sales of small and medium-size TFT LCDs used in mobile phones increased. However, sales of large-size TFT LCDs dropped sharply due to falling panel prices and a soft PC market. In semiconductors, demand was strong for system LSIs, including LCD drivers used in mobile phones and microcomputers for automotive applications. Demand was also strong for multi-purpose semiconductors. As a result, segment sales were 378.4 billion yen (US$3,154 million), 11% higher year on year. While the segment recorded an operating loss of 6.0 billion yen (US$50 million), this was a 48.0 billion yen (US$400 million) improvement from the 54.0 billion yen (US$450 million) loss recorded in the third quarter of fiscal 2001. This turnaround reflects the benefits of structural reforms. In Power & Industrial Systems, sales increased 3% overall, to 498.7 billion yen (US$4,156 million) due to firm demand for construction machinery, mainly overseas, and the inclusion in consolidated results of the former Unisia JECS Corporation (now Hitachi Unisia Automotive, Ltd.), which became a wholly owned subsidiary in the current fiscal year. These factors outweighed lower sales of maintenance services for nuclear power plants of Japanese utilities, as well as the effects of lackluster private-sector plant and equipment investment that reflected the sluggish state of the Japanese economy. Operating income surged 352%, to 9.5 billion yen (US$80 million) as a strong performance from construction machinery offset deteriorating results in air-conditioning equipment and other industrial equipment areas. In Digital Media & Consumer Products, sales rose 1%, to 307.4 billion yen (US$2,562 million) due to brisk sales of optical storage products and plasma TVs and to higher demand for lithium-ion batteries used in mobile phones and other rechargeable batteries manufactured by Hitachi Maxell, Ltd. Hampering growth was sluggish sales of large home appliances, which resulted from falling sales prices in Japan. The segment recorded operating income of 2.7 billion yen (US$23 million), 336% higher year on year. Higher earnings reflected a strong performance in recordable DVD disks and a return to profitability in rechargeable batteries at Hitachi Maxell. - more - - 3 - In High Functional Materials & Components, although Hitachi Cable, Ltd. saw sales decline year on year, segment sales rose 2%, to 310.3 billion yen (US$2,586 million) thanks mainly to higher sales for electronics-related materials and components at Hitachi Chemical Co., Ltd. Due to the benefits of structural reforms, the segment posted operating income of 7.1 billion yen (US$59 million), an 11.6 billion yen (US$97 million) turnaround from the loss of 4.5 billion yen (US$38 million) recorded in the same period of the previous fiscal year. In Logistics, Services & Others, sales rose 9% year on year, to 375.9 billion yen (US$3,133 million) on higher sales of information and telecommunications-related equipment, such as hard disk drives and servers, at overseas sales companies. Segment operating income climbed 121% to 2.6 billion yen (US$22 million). In Financial Services, segment sales rose 1% year on year, to 142.9 billion yen (US$1,191 million) due to a steady performance from financial services, particularly the leasing business for information equipment. This offset the effects of a weak Japanese economy. Segment operating income dropped 65%, to 3.1 billion yen (US$26 million) as a result of increased competition. Other income fell 11.5 billion yen (US$97 million), to 7.3 billion yen (US$61 million). However, other deductions fell 94.2 billion yen (US$785 million), to 13.4 billion yen (US$112 million). As a result, income before income taxes was 6.8 billion yen (US$57 million). After income taxes of 1.0 billion yen (US$9 million), Hitachi recorded income before minority interests of 5.7 billion yen (US$48 million). Net income was 1.3 billion yen (US$11 million), a 117.1 billion yen (US$976 million) improvement from the 115.8 billion yen (US$965 million) loss recorded in the third quarter of fiscal 2001. Financial Position Operating activities used net cash of 30.1 billion yen (US$251 million), 20.0 billion yen (US$167 million) more than in the same period of the previous fiscal year, due to an increase in inventories and accounts receivable in line with higher sales. Investing activities used net cash of 337.9 billion yen (US$2,816 million), 170.7 billion yen (US$1,423 million) more year on year, reflecting Hitachi's acquisition during the third quarter of IBM's hard disk drive operations. However, cash used for the purchase of property, plant and equipment decreased as Hitachi adopted a more selective approach to capital investments. - more - - 4 - Free cash flows, the sum of cash flows from operating and investing activities, were an outflow of 368.0 billion yen (US$3,067 million), an increase of 190.8 billion yen (US$1,591 million) year on year. Financing activities provided net cash of 269.4 billion yen (US$2,246 million), compared with net cash used of 266.1 billion yen (US$2,218 million) in the same period of the previous fiscal year, due to an increase in debt. Cash and cash equivalents as of December 31, 2002 amounted to 775.0 billion yen (US$6,458 million), a net decrease of 100.1 billion yen (US$835 million) during the third quarter. Debt as of December 31, 2002 stood at 3,115.5 billion yen (US$25,963 million), 338.6 billion yen (US$2,822 million) more than at September 30, 2002. Capital investment on a completion basis decreased 8%, to 184.0 billion yen (US$1,534 million), and depreciation decreased 8%, to 117.6 billion yen (US$981 million). All figures were converted at the rate of 120 yen = U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 30, 2002. Outlook for Fiscal 2002 The world economy is being cloaked in growing uncertainty as tensions over Iraq rise while the non-performing loan issue and persistent deflationary forces indicate that the Japanese economy is not likely to stage a full-fledged recovery in the foreseeable future. Consequently, Hitachi's operating environment is expected to remain unpredictable. Hitachi has decided at this point not to revise its projections for fiscal 2002, as announced in October last year and detailed below. The projections assume an exchange rate of 120 yen to the U.S. dollar for the fourth quarter of fiscal 2002. Net sales 8,050 billion yen (US$67,083 million) (year-on-year increase of 1%) Operating income 150 billion yen (US$1,250 million) Income before income taxes 130 billion yen (US$1,083 million) Income before minority interests 61 billion yen (US$508 million) Net income 36 billion yen (US$300 million) - more - - 5 - Cautionary Statement This document contains forward-looking statements which reflect management's current views with respect to certain future events and financial performance. Words such as "anticipate," "believe," "expect," "estimate," "intend," "plan," "project" and similar expressions which indicate future events and trends identify forward-looking statements. Actual results may differ materially from those projected or implied in the forward-looking statements and from historical trends. Further, certain forward-looking statements are based upon assumptions of future events which may not prove to be accurate. Factors that could cause actual results to differ materially from those projected or implied in any forward-looking statements include, but are not limited to, rapid technological change, particularly in the Information & Telecommunication Systems segment and Electronic Devices segment; uncertainty as to Hitachi's ability to continue to develop products and to market products that incorporate new technology on a timely and cost-effective basis and achieve market acceptance; fluctuations in product demand and industry capacity, particularly in the Information & Telecommunication Systems segment, Electronic Devices segment and Digital Media & Consumer Products segment; increasing commoditization of information technology products, and intensifying price competition in the market for such products; fluctuations in rates of exchange for the yen and other currencies in which Hitachi makes significant sales or in which Hitachi's assets and liabilities are denominated, particularly between the yen and the U.S. dollar; uncertainty as to Hitachi's access to liquidity or long-term financing, particularly in the context of restrictions on availability of credit prevailing in Japan; uncertainty as to Hitachi's ability to implement measures to reduce the potential negative impact of fluctuations in product demand and/or exchange rates; general economic conditions and the regulatory and trade environment of Hitachi's major markets, particularly, the United States, Japan and elsewhere in Asia, including, without limitation, continued stagnation or deterioration of the Japanese or other East Asian economies, or direct or indirect restriction by other nations of imports; uncertainty as to Hitachi's access to, or protection for, certain intellectual property rights, particularly those related to electronics and data processing technologies; Hitachi's dependence on alliances with other corporations in designing or developing certain products; and the market prices of equity securities in Japan, declines in which may result in write-downs of equity securities Hitachi holds. These factors listed above are not exclusive and are in addition to other factors that are stated or indicated elsewhere in this document, or in other materials published by the Company. - more - - 6 - Hitachi, Ltd. and Subsidiaries Consolidated Financial Statements for the Third Quarter Ended December 31, 2002 The consolidated financial statements presented herein are expressed in yen and, solely for the convenience of the reader, have been translated into United States dollars at the rate of 120 yen = U.S.$1, the approximate exchange rate prevailing on the Tokyo Foreign Exchange Market as of December 30, 2002. Summary In millions of yen and U.S. dollars, except Net income (loss) per share (6) and Net income (loss) per American Depositary Share (7).

Three months ended December 31 Nine months ended December 31 ------------------------------------------ ----------------------------------------- Yen U.S. $ Yen U.S. $ (millions) (A)/(B) (millions) (millions) (C)/(D) (millions) ---------------------- X100 ---------- --------------------- X100 ---------- 2002 (A) 2001 (B) (%) 2002 2002 (C) 2001 (D) (%) 2002 --------- --------- --- ------ --------- --------- --- ------ 1. Net sales 1,921,059 1,834,183 105 16,009 5,837,550 5,772,304 101 48,646 2. Operating income (loss) 12,896 (69,292) - 107 74,584 (111,402) - 622 3. Income (loss) before income taxes and minority interests 6,817 (157,988) - 57 52,694 (256,529) - 439 4. Income (loss) before minority interests 5,738 (116,595) - 48 30,348 (233,291) - 253 5. Net income (loss) 1,332 (115,821) - 11 14,184 (226,364) - 118 6. Net income (loss) per share Basic 0.39 (34.70) - 0.00 4.24 (67.82) - 0.04 Diluted 0.38 - - 0.00 4.15 - - 0.03 7. Net income (loss) per ADS (representing 10 shares) Basic 4 (347) - 0.03 42 (678) - 0.35 Diluted 4 - - 0.03 42 - - 0.35

Notes: 1. Consolidated quarterly figures are unaudited. 2. Segment Information and operating income (loss) are presented in accordance with financial reporting principles and practices generally accepted in Japan. 3. The figures are for 1,105 consolidated subsidiaries and 111 equity-method affiliates. 4. Hitachi Global Storage Technologies (HGST), which was established following the acquisition of IBM's hard disk drive operations on December 31, 2002, will be consolidated by Hitachi effective March 31, 2003, in accordance with the provisions of Accounting Research Bulletin No.51, "Consolidated Financial Statements." - more - - 7 - Consolidated Statements of Income (Unaudited)

Three months ended December 31 ------------------------------------------------------------- Yen U.S. Dollars (millions) (A)/(B) (millions) ------------------------- X100 ------------- 2002 (A) 2001 (B) (%) 2002 --------- --------- --- ------ Net sales 1,921,059 1,834,183 105 16,009 --------- --------- --- ------ Cost of sales 1,465,699 1,445,815 101 12,214 --------- --------- --- ------ Selling, general and administrative expenses 442,464 457,660 97 3,687 --------- --------- --- ------ Operating income (loss) 12,896 (69,292) -- 107 --------- --------- --- ------ Other income 7,331 18,929 39 61 (Interest and dividends) 5,345 5,584 96 45 (Other) 1,986 13,345 15 17 --------- --------- --- ------ Other deductions 13,410 107,625 12 112 (Interest charges) 8,113 11,353 71 68 (Other) 5,297 96,272 6 44 --------- --------- --- ------ Income (Loss) before income taxes and minority interests 6,817 (157,988) -- 57 --------- --------- --- ------ Income taxes 1,079 (41,393) -- 9 --------- --------- --- ------ Income (Loss) before 5,738 (116,595) -- 48 minority interests --------- --------- --- ------ Minority interests 4,406 (774) -- 37 --------- --------- --- ------ Net income (loss) 1,332 (115,821) -- 11 --------- --------- --- ------

- more - - 8 - Consolidated Statements of Income (Unaudited)

Nine months ended December 31 ------------------------------------------------------------- Yen U.S. Dollars (millions) (C)/(D) (millions) --------- --------- X100 ------------- 2002 (C) 2001 (D) (%) 2002 --------- --------- ------- ------ Net sales 5,837,550 5,772,304 101 48,646 --------- --------- --- ------ Cost of sales 4,435,257 4,462,158 99 36,960 --------- --------- --- ------ Selling, general and administrative expenses 1,327,709 1,421,548 93 11,064 --------- --------- --- ------ Operating income (loss) 74,584 (111,402) -- 622 --------- --------- --- ------ Other income 34,043 26,667 128 284 (Interest and dividends) 16,326 22,830 72 136 (Other) 17,717 3,837 462 148 --------- --------- --- ------ Other deductions 55,933 171,794 33 466 (Interest charges) 25,916 37,253 70 216 (Other) 30,017 134,541 22 250 --------- --------- --- ------ Income (Loss) before income taxes 52,694 (256,529) -- 439 and minority interests --------- --------- --- ------ Income taxes 22,346 (23,238) -- 186 --------- --------- --- ------ Income (Loss) before 30,348 (233,291) -- 253 minority interests --------- --------- --- ------ Minority interests 16,164 (6,927) -- 135 --------- --------- --- ------ Net income (loss) 14,184 (226,364) -- 118 --------- --------- --- ------

- more - - 9 - Consolidated Balance Sheets (Unaudited)

Yen Yen U.S. Dollars (millions) (millions) (millions) -------------------------- --------- ------------ As of As of (A)/(B) As of As of December 31, September 30, X100 March 31, December 31, 2002 (A) 2002 (B) (%) 2002 2002 --------- --------- ------- --------- ------------ Assets 9,942,774 9,360,312 106 9,915,654 82,856 --------- --------- --- --------- ------ Current assets 5,231,144 4,991,308 105 5,507,535 43,593 Cash and cash equivalents 775,016 875,212 89 1,029,374 6,458 Short-term investments 157,934 160,862 98 178,933 1,316 Trade receivables (Notes and Accounts) 1,971,788 1,850,662 107 2,100,005 16,432 Investment in leases 479,686 459,526 104 527,432 3,997 Inventories 1,323,608 1,193,242 111 1,214,399 11,030 Other current assets 523,112 451,804 116 457,392 4,359 --------- --------- --- --------- ------ Investments and advances 957,905 773,211 124 834,907 7,983 --------- --------- --- --------- ------ Property, plant and equipment 2,511,530 2,448,810 103 2,514,424 20,929 --------- --------- --- --------- ------ Other assets 1,242,195 1,146,983 108 1,058,788 10,352 --------- --------- --- --------- ------ Liabilities and Stockholders' equity 9,942,774 9,360,312 106 9,915,654 82,856 --------- --------- --- --------- ------ Current liabilities 4,175,690 3,649,636 114 3,885,265 34,797 Short-term debt and current installments of long-term debt 1,580,282 1,235,091 128 1,199,921 13,169 Trade payables (Notes and Accounts) 1,161,800 1,048,232 111 1,083,836 9,682 Other current liabilities 1,433,608 1,366,313 105 1,601,508 11,947 --------- --------- --- --------- ------ Noncurrent liabilities 2,667,556 2,617,237 102 2,927,421 22,230 Long-term debt 1,535,237 1,541,809 100 1,798,303 12,794 Other liabilities 1,132,319 1,075,428 105 1,129,118 9,436 --------- --------- --- --------- ------ Minority interests 799,338 802,071 100 798,744 6,661 --------- --------- --- --------- ------ Stockholders' equity 2,300,190 2,291,368 100 2,304,224 19,168 Common stock 282,032 282,032 100 282,032 2,350 Capital surplus 563,867 530,460 106 527,010 4,699 Legal reserve and retained earnings 1,752,888 1,761,907 99 1,753,999 14,607 Accumulated other comprehensive income (loss) (296,833) (282,322) -- (258,484) (2,474) (Foreign currency translation adjustments) (60,334) (56,624) -- (38,012) (503) (Minimum pension liability adjustments) (244,156) (243,059) -- (260,100) (2,035) (Net unrealized holding gain on available-for-sale securities) 8,306 17,621 47 39,997 69 (Cash flow hedges) (649) (260) -- (369) (5) Treasury stock (1,764) (709) -- (333) (15) --------- --------- --- --------- ------

Note: Hitachi's investment in HGST is recorded under "Investments and advances" on Hitachi's consolidated balance sheet at December 31, 2002. - more - - 10 - Consolidated Statements of Cash Flows (Unaudited)

Three months ended December 31 --------------------------------------------- Yen U.S. Dollars (millions) (millions) ------------------------- ------------ 2002 2001 2002 -------- ------- ----------- Cash flows from operating activities Net income (loss) 1,332 (115,821) 11 Adjustments to reconcile net income (loss) to net cash provided by operating activities Depreciation 117,683 127,526 981 (Increase) Decrease in receivables and inventories (185,323) 107,771 (1,544) Increase (Decrease) in payables 85,098 (78,031) 709 Other (48,948) (51,521) (408) -------- --------- ------ Net cash used in operating activities (30,158) (10,076) (251) Cash flows from investing activities (Increase) Decrease in short-term investments 3,898 (13,142) 32 Purchase of rental assets and other properties, net (166,211) (178,156) (1,385) Purchase of investments and subsidiaries' common stock, net (3,982) (26,693) (33) Collection of investment in leases 72,090 68,288 601 Other (243,718) (17,440) (2,031) -------- --------- ------ Net cash used in investing activities (337,923) (167,143) (2,816) Cash flows from financing activities Increase (Decrease) in interest-bearing debt 284,352 (252,265) 2,370 Dividends paid to stockholders (8,524) (8,604) (71) Dividends paid to minority stockholders of subsidiaries (5,390) (5,536) (45) Other (969) 268 (8) -------- --------- ------ Net cash provided by (used in) financing activities 269,469 (266,137) 2,246 Effect of exchange rate changes on cash and cash equivalents (1,584) 15,060 (13) -------- --------- ------ Net decrease in cash and cash equivalents (100,196) (428,296) (835) Cash and cash equivalents at beginning of the period 875,212 1,431,598 7,293 -------- --------- ------ Cash and cash equivalents at end of the period 775,016 1,003,302 6,458 ======== ========= =====

- more - - 11 - Consolidated Statements of Cash Flows (Unaudited)

Nine months ended December 31 ---------------------------------------------- Yen U.S. Dollars (millions) (millions) -------------------------- ------------ 2002 2001 2002 --------- ---------- ------ Cash flows from operating activities Net income (loss) 14,184 (226,364) 118 Adjustments to reconcile net income (loss) to net cash provided by operating activities Depreciation 343,963 386,240 2,866 (Increase) Decrease in receivables and inventories (10,059) 559,585 (84) Increase (Decrease) in payables 59,187 (351,905) 493 Other (245,930) (181,309) (2,049) --------- ---------- ------ Net cash provided by operating activities 161,345 186,247 1,345 Cash flows from investing activities Decrease in short-term investments 21,489 39,986 179 Purchase of rental assets and other properties, net (471,719) (587,840) (3,931) Sale of (Purchase of) investments and subsidiaries' common stock, net 52,007 (73,046) 433 Collection of investment in leases 281,959 300,735 2,350 Other (350,618) (63,552) (2,922) --------- ---------- ------ Net cash used in investing activities (466,882) (383,717) (3,891) Cash flows from financing activities Increase (Decrease) in interest-bearing debt 92,445 (193,565) 770 Dividends paid to stockholders (8,606) (26,893) (72) Dividends paid to minority stockholders of subsidiaries (12,346) (12,894) (103) Other 119 41,344 1 --------- ---------- ------ Net cash provided by (used in) financing activities 71,612 (192,008) 597 Effect of exchange rate changes on cash and cash equivalents (20,433) 11,177 (170) --------- ---------- ------ Net decrease in cash and cash equivalents (254,358) (378,301) (2,120) Cash and cash equivalents at beginning of the period 1,029,374 1,381,603 8,578 --------- ---------- ------ Cash and cash equivalents at end of the period 775,016 1,003,302 6,458 ========= ========== ======

- more - - 12 - Segment Information (Unaudited) Industry Segments

Three months ended December 31 -------------------------------------------------------- Yen U.S. Dollars (millions) (A)/(B) (millions) -------------------------- X100 ------------ 2002 (A) 2001 (B) (%) 2002 --------- --------- --- ------ Information & Telecommunication 409,665 372,806 110 3,414 Systems 17% 17% Electronic Devices 378,452 342,458 111 3,154 16% 15% Power & Industrial Systems 498,747 482,228 103 4,156 20% 21% Digital Media & Consumer 307,473 303,059 101 2,562 Products 13% 13% Sales High Functional Materials 310,323 303,062 102 2,586 & Components 13% 13% Logistics, Services & Others 375,994 346,356 109 3,133 15% 15% Financial Services 142,924 141,576 101 1,191 6% 6% Subtotal 2,423,578 2,291,545 106 20,196 100% 100% --------- --------- --- ------ Eliminations & Corporate items (502,519) (457,362) - (4,188) --------- --------- --- ------ Total 1,921,059 1,834,183 105 16,009 ========= ========= === ====== ------------------------------------------------------------------------------------------------------------------------------- Information & Telecommunication 1,811 (13,538) - 15 Systems - - Electronic Devices (6,010) (54,043) - (50) - - Power & Industrial Systems 9,552 2,111 452 80 - - Digital Media & Consumer 2,748 630 436 23 Products - - Operating High Functional Materials 7,113 (4,502) - 59 income (loss) & Components - - Logistics, Services & Others 2,678 1,214 221 22 - - Financial Services 3,116 8,852 35 26 - - Subtotal 21,008 (59,276) - 175 - - --------- --------- --- ------ Eliminations & Corporate items (8,112) (10,016) - (68) --------- --------- --- ------ Total 12,896 (69,292) - 107 ========= ========= === ====== -------------------------------------------------------------------------------------------------------------------------------

Note: Net sales by industry segment include intersegment transactions. - more - - 13 - Segment Information (Unaudited) Industry Segments

Nine months ended December 31 ---------------------------------------------------------- Yen U.S. Dollars (millions) (C)/(D) (millions) -------------------------- X100 ------------ 2002 (C) 2001 (D) (%) 2002 ---------- ---------- --- ------- Information & Telecommunication 1,287,895 1,246,118 103 10,732 Systems 17% 17% Electronic Devices 1,144,869 1,107,548 103 9,541 16% 15% Power & Industrial Systems 1,566,848 1,599,603 98 13,057 21% 22% Digital Media & Consumer 905,162 885,552 102 7,543 Products 12% 12% Sales High Functional Materials 923,384 931,237 99 7,695 & Components 13% 13% Logistics, Services & Others 1,076,607 1,054,122 102 8,972 15% 15% Financial Services 436,245 422,678 103 3,635 6% 6% Subtotal 7,341,010 7,246,858 101 61,175 100% 100% ---------- ---------- --- ------- Eliminations & Corporate items (1,503,460) (1,474,554) - (12,529) ---------- ---------- --- ------- Total 5,837,550 5,772,304 101 48,646 ========== ========== === ======= --------------------------------------------------------------------------------------------------------------------------------- Information & Telecommunication 43,978 1,020 - 366 Systems - - Electronic Devices (13,928) (126,961) - (116) - - Power & Industrial Systems 20,663 28,847 72 172 - - Digital Media & Consumer 8,495 (5,392) - 71 Products - - Operating High Functional Materials 16,155 (5,977) - 135 income (loss) & Components - - Logistics, Services & Others 4,135 8,586 48 34 - - Financial Services 21,769 29,255 74 181 - - Subtotal 101,267 (70,622) - 844 - - ---------- ---------- --- ------- Eliminations & Corporate items (26,683) (40,780) - (222) ---------- ---------- --- ------- Total 74,584 (111,402) - 622 ========== ========== === ======= ---------------------------------------------------------------------------------------------------------------------------------

Note: Net sales by industry segment include intersegment transactions. - more - - 14 - Segment Information (Unaudited) Sales by Market

Three months ended December 31 -------------------------------------------------------------- Yen U.S. Dollars (millions) (A)/(B) (millions) ----------------------------- X100 ------------ 2002 (A) 2001 (B) (%) 2002 --------- --------- --- ------ Japan 1,244,908 1,225,023 102 10,374 65% 67% Asia 254,008 205,555 124 2,117 13% 11% North America 242,035 234,991 103 2,017 13% 13% Europe 135,257 122,992 110 1,127 7% 7% Other Areas 44,851 45,622 98 374 2% 2% Outside Japan 676,151 609,160 111 5,635 35% 33% --------- --------- --- ------ Total 1,921,059 1,834,183 105 16,009 100% 100% --------- --------- --- ------

Nine months ended December 31 -------------------------------------------------------------- Yen U.S. Dollars (millions) (C)/(D) (millions) ----------------------------- X100 ------------ 2002 (C) 2001 (D) (%) 2002 --------- --------- --- ------ Japan 3,878,016 3,925,441 99 32,317 66% 68% Asia 752,602 637,081 118 6,272 13% 11% North America 669,015 685,863 98 5,575 12% 12% Europe 397,442 379,935 105 3,312 7% 7% Other Areas 140,475 143,984 98 1,171 2% 2% Outside Japan 1,959,534 1,846,863 106 16,329 34% 32% --------- --------- --- ------ Total 5,837,550 5,772,304 101 48,646 100% 100% --------- --------- --- ------

# # # February 4, 2003 Hitachi, Ltd. Supplementary Information for the Third Quarter Ended December 31, 2002 (Consolidated basis) 1. SUMMARY

(Billions of yen) ------------------------------------------------------------------ Three months ended December 31 Nine months ended December 31 ------------------------------ ------------------------------ 2001 2002 2001 2002 ------- ----------------- ------- ----------------- (B)/(A) (D)/(C) (A) (B) X100(%) (C) (D) X100(%) ------- ------- ------- ------- ------- ------- Net sales 1,834.1 1,921.0 105 5,772.3 5,837.5 101 Operating income (loss) (69.2) 12.8 -- (111.4) 74.5 -- Income (loss) before income taxes and minority interests (157.9) 6.8 -- (256.5) 52.6 -- Income (loss) before minority interests (116.5) 5.7 -- (233.2) 30.3 -- Net income (loss) (115.8) 1.3 -- (226.3) 14.1 -- Average exchange rate (yen / U.S.$) 126 122 -- 123 122 -- ------- ------- --- ------- ------- --- Capital investment (Completion basis) 199.9 184.0 92 641.9 559.3 87 Leasing assets 105.9 110.1 104 329.0 323.9 98 Other 93.9 73.8 79 312.8 235.3 75 Depreciation 127.5 117.6 92 386.2 343.9 89 Leasing assets 18.9 20.3 107 62.6 60.5 97 Other 108.5 97.2 90 323.6 283.3 88 R&D expenditure 95.1 90.7 95 308.2 280.4 91 Percentage of net sales 5.2% 4.7% -- 5.3% 4.8% --

As of As of As of March 31, 2002 September 30, 2002 December 31, 2002 -------------- ------------------ ----------------- Stockholders' equity per share(yen) 690 687 684 Cash & cash equivalents, Short-term investments (Billions of yen) 1,208.3 1,036.0 932.9 Interest-bearing debt (Billions of yen) 2,998.2 2,776.9 3,115.5 Number of employees 321,517 318,418 327,805 Japan 256,823 251,584 258,439 Overseas 64,694 66,834 69,366 Number of consolidated subsidiaries 1,066 1,069 1,105 Japan 712 706 716 Overseas 354 363 389

2. OVERSEAS SALES BY INDUSTRY SEGMENT

(Billions of yen) ------------------------------------------------------------------ Three months ended December 31 Nine months ended December 31 ------------------------------ ------------------------------ 2001 2002 2001 2002 ------- ----------------- ------- ----------------- (B)/(A) (D)/(C) (A) (B) X100(%) (C) (D) X100(%) ------ ------ ------- ------- ------- ------- Information & Telecommunication Systems 63.0 79.5 126 182.4 208.5 114 Electronic Devices 116.6 137.7 118 381.2 400.9 105 Power & Industrial Systems 77.0 88.3 115 267.5 282.5 106 Digital Media & Consumer Products 127.3 114.9 90 363.1 360.9 99 High Functional Materials & Components 79.1 78.4 99 249.1 234.0 94 Logistics, Services & Others 136.2 166.9 123 374.9 444.0 118 Financial Services 9.7 9.6 99 28.3 28.1 99 Eliminations & Corporate items 0.0 0.4 -- 0.0 0.3 -- ----- ----- --- ------- ------- --- Total 609.1 676.1 111 1,846.8 1,959.5 106 ===== ===== === ======= ======= ===

- ### - February 4, 2003 Hitachi, Ltd. SUPPLEMENTARY INFORMATION ON INFORMATION & TELECOMMUNICATION SYSTEMS 1. Sales and Operating income (loss) by product sector

(Billions of yen) -------------------------------------------------------------------- Three months ended December 31 Nine months ended December 31 -------------------------------- -------------------------------- (A)/B) (C)/D) 2002(A) 2001(B) X100(%) 2002(C) 2001(D) X100(%) ------- ------- ------- ------- ------- ------- Sales 409.6 372.8 110% 1,287.8 1,246.1 103% Software & Services 189.2 189.7 100% 642.6 642.4 100% Hardware 220.4 183.1 120% 645.2 603.7 107% Operating income (loss) 1.8 (13.5) - 43.9 1.0 -

2. Sales by product sector

(Billions of yen) -------------------------------------------------------------------- Three months ended December 31 Nine months ended December 31 -------------------------------- -------------------------------- (A)/B) (C)/D) 2002(A) 2001(B) X100(%) 2002(C) 2001(D) X100(%) ------- ------- ------- ------- ------- ------- Software & Services 189.2 189.7 100% 642.6 642.4 100% Software 39.8 - 131.4 - Services 149.4 - 511.2 - Hardware 220.4 183.1 120% 645.2 603.7 107% Servers 33.8 - 93.9 - PCs 32.3 - 103.9 - Storage 88.0 - 253.5 - Telecommunication 25.1 - 72.3 - Others 41.2 - 121.6 -

Notes: Figures for servers include supercomputers, general-purpose computers and UNIX servers, etc. Figures for PCs include PC servers and client PCs, etc. Figures for storage include disk array subsystems, and Hard Disk Drives, etc. 3. SAN/NAS Storage Solutions

(Billions of yen) -------------------------------------------------------------------- Three months ended December 31 Nine months ended December 31 -------------------------------- -------------------------------- (A)/B) (C)/D) 2002(A) 2001(B) X100(%) 2002(C) 2001(D) X100(%) ------- ------- ------- ------- ------- ------- Sales 70.0 60.0 117% 200.0 180.0 111%

4. Hard Disk Drives (unconsolidated basis)

(Billions of yen) -------------------------------------------------------------------- Three months ended December 31 Nine months ended December 31 -------------------------------- -------------------------------- (A)/B) (C)/D) 2002(A) 2001(B) X100(%) 2002(C) 2001(D) X100(%) --------- --------- ------- --------- --------- ------- Number of units 2,200,000 1,700,000 129% 6,200,000 4,300,000 144%

- ### - February 4, 2003 Hitachi, Ltd. SUPPLEMENTARY INFORMATION ON SEMICONDUCTORS & DISPLAYS 1. Semiconductors

Sales and Operating income (loss) (Billions of yen) -------------------------------------------------------------------------------- Three months ended Nine months ended December 31 December 31 ------------------------- ------------------------- (A)/(B) (C)/(D) 2002(A) 2001(B) X100(%) 2002(C) 2001(D) X100(%) ------- ------- ------- ------- ------- ------- Sales 152.4 112.4 136% 429.9 379.9 113% Operating income (loss) (3.0) (40.6) -- (17.4) (98.5) --

DRAM & Flash Memory production quantity (pieces/months) ------------------------------------------------------------------------------- Fiscal 2002 ------------------------------------------- 1st quarter 2nd quarter 3rd quarter ----------- ----------- ----------- 64MDRAM 550,000 600,000 600,000 256MDRAM 2,000,000 2,000,000 2,000,000 256M Flash Memory 600,000 600,000 500,000

2. Displays

Sales and Operating income (loss) (Billions of yen) -------------------------------------------------------------------------------- Three months ended Nine months ended December 31 December 31 ------------------------- ------------------------- (A)/(B) (C)/(D) 2002(A) 2001(B) X100(%) 2002(C) 2001(D) X100(%) ------- ------- ------- ------- ------- ------- Sales 43.7 49.4 89% 143.7 141.4 102% Operating income (loss) (7.7) (14.1) -- (9.0) (40.3) --

LCD Sales (Billions of yen) -------------------------------------------------------------------------------- Three months ended Nine months ended December 31 December 31 ------------------------- ------------------------- (A)/(B) (C)/(D) 2002(A) 2001(B) X100(%) 2002(C) 2001(D) X100(%) ------- ------- ------- ------- ------- ------- Total 32.0 35.0 91% 112.0 83.0 135% Large size LCDs 20.0 31.0 65% 78.0 74.0 105% Medium & small size LCDs 12.0 4.0 300% 34.0 9.0 378%

-###- FOR IMMEDIATE RELEASE Contacts: Keisaku Shibatani Takeshi Okamoto Public Relations Public Relations Dept. Hitachi, Ltd. Ubiquitous Platform Systems Hitachi, Ltd. Tel: +81-3-3258-2056 Tel: +81-3-3506-1573 keisaku_shibatani@hdq.hitachi.co.jp okamoto-takeshi@itg.hitachi.co.jp Hitachi to Integrate and Dissolve Content Producer Hitachi Media Pro to Strengthen Solutions Ability in Ubiquitous Platform Systems Group Tokyo, February 4, 2003 -- Hitachi, Ltd. (TSE:6501/NYSE:HIT) has announced dissolution of affiliate Hitachi Media Pro Co., Ltd. on March 31 this year and integration of the content production activities of the company into the Ubiquitous Platform Systems Group . This move is intended to enhance Hitachi's ability to provide one-stop solutions for the ubiquitous information society. Recent advances in digitalization and networking are bringing a ubiquitous information society closer to reality. Such a society will see information in the form of data, voice and images shared anytime, anywhere and by anybody using PCs, mobile phones, PDAs, TVs, displays and other information appliances. Hitachi is responding to this emerging market. To provide highly reliable systems that take advantage of cutting-edge digital technologies in the fields of IT and audiovisual software and hardware, Hitachi established the Ubiquitous Solutions Operation in the Ubiquitous Platform Systems Group in October last year. The integration of Hitachi Media Pro's multimedia content production operations into Hitachi will facilitate the provision of multimedia content for business use from a single source. Hitachi will thus move another step closer to being a one-stop source of solutions that enhance the value of customers' businesses. -more- -2- About The Dissolution of Hitachi Media Pro 1. Company to Be Dissolved (1) Name : Hitachi Media Pro Co., Ltd. (2) Address : 1-6, Shibuya 2-chome, Shibuya-ku, Japan (3) Representative director : Masahiko Ikeda 2. Reason for Dissolution The integration of Hitachi Media Pro's multimedia content production operations, which are targeted at a business clientele, will more effectively enable the Hitachi Group to provide ubiquitous platform solutions. 3. Profile of Hitachi Media Pro (1) Business operations o Planning, production, sales, rental and leasing of video, music and computer graphics software. o Production and sales of audio and visual recordings. o Planning, design, production and execution of advertising programs, as well as associated agency and management services. o Planning, proposal, design, production, operation, management and total coordination of various events, displays, exhibitions and show rooms. (2) Established : October 1, 1994 (3) Capital : 100 million yen (4) No. of issued shares : 200,000 shares (5) Shareholders' equity : 68,782,277 yen (at March 31, 2002) (6) Total assets : 261,124,538 yen (at March 31, 2002) (7) Fiscal year-end : March 31 (8) No. of employees : 7 (9) Principal customers : Hitachi, Ltd., Nikkyo Create.Ltd., Sanseido Book Store, Ltd. (10) Shareholders (%) : Hitachi, Ltd. (71%), Hitachi Kokusai Electric Inc. (20%), Hitachi Intermedix Co., Ltd. (4.5%), Columbia Music Entertainment, Inc. (4.5%) (11) Main bank : Mizuho Bank, Ltd. -3- (12) 3-year data:

Fiscal year ended March 31, 2000 March 31, 2001 March 31, 2002 ----------------- -------------- -------------- -------------- Net sales (yen) 531,259,034 414,360,023 363,727,342 Recurring profit (yen) 4,963,796 19,559,528 o 35,47l,841 Net income (yen) 4,963,796 19,559,528 o 18,600,541 Net income per share (yen) 24.82 97.80 o 93.00 Shareholders' dividend per share (yen) 0 0 0 Shareholders' equity per share (yen) 339 437 344 Total assets (o) 254,770,926 233,363,300 261,124,538 Shareholders' equity (o) 67,823,290 87,382,818 68,782,277 Capital (yen) 100,000,000 100,000,000 100,000,000 No. of issued shares 200,000 200,000 200,000

(13) Loss on dissolution (yen) : 40,000,000 (14) Dissolution schedule : March 31, 2003 (15) Forecasts :

Fiscal year ending March 31, 2003 March 31, 2004 March 31, 2005 ------------------ -------------- -------------- -------------- Net sales (yen) 380,000,000 410,000,000 450,000,000 Recurring profit (yen) 12,000,000 10,000,000 19,000,000 Net income (yen) 11,000,000 8,000,000 14,000,000 Net income per share (yen) 55.00 40.00 70.00 Shareholders' dividend per share (yen) 0 0 0 Shareholders' equity per share (yen) 370 410 480 Total assets (yen) 250,000,000 221,000,000 247,000,000 Shareholders' equity (yen) 74,000,000 82,000,000 96,000,000 Capital (yen) 100,000,000 100,000,000 100,000,000 No. of issued shares 200,000 200,000 200,000

-###- (Translation) Hitachi, Ltd. 6, Kanda-Surugadai 4-Chome Chiyoda-Ku, Tokyo February 6, 2003 To Our Shareholders Report on the Resolutions Adopted at the Extraordinary General Meeting of Shareholders Dear Sir/Madam: We take pleasure in informing you that the following items were resolved, respectively, at our Extraordinary General Meeting of Shareholders held today. Item No. 1 Approval of the Plan for Joint Corporate Split by the Company and Mitsubishi Electric Corporation The plan was approved as proposed. The substance of the Plan for Joint Corporate Split is as follows: (1) Effective April 1, 2003, the Company and Mitsubishi Electric Corporation shall jointly incorporate Renesas Technology Corp. (the "New Company") and transfer their respective businesses relating to design, manufacture and sale of system LSIs, semiconductor devices and memories (excluding DRAMs) to the New Company. (2) The New Company shall issue 5,000,000 shares of common stock, which shall be allocated to the Company at 2,750,000 shares and to Mitsubishi Electric Corporation at 2,250,000 shares. (3) The amounts of capital of the New Company shall be 50 billion Japanese yen. Item No. 2 Amendment to the Articles of Incorporation It was approved as proposed to amend provisions of the Articles of Incorporation as follows: o In accordance with the amendment to the Commercial Code of Japan, the Company established a provision to reduce the quorum for a General Meeting of Shareholders to adopt resolutions (special resolutions) as provided for in Article 343 of the Commercial Code of Japan and a supplementary provision to effectuate such provision as of April 1, 2003. Very truly yours, Etsuhiko Shoyama President and Director