Hitachi 2009 Annual Report Download - page 25

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Segment revenues decreased 7% year over year, to
¥412.0 billion (U.S.$4,204 million), due mainly to
lower transaction volumes at Hitachi Capital
Corporation. Operating income dropped 60%, to
¥10.2 billion (U.S.$104 million), mainly on account
of increased bad debt expenses at Hitachi Capital.
n฀Hitachi Capital Corporation
Volume declined year over year. Earnings also declined due to
increased bad debt expenses and a reduction in used asset
prices in Europe and North America.
In the finance sector, lease demand declined as economic
conditions worsened in the past fiscal year. Revenues from com-
mission services were affected by a decline in affiliated loan sales
transactions because of the slump in auto sales. In the supply
and sales services, Hitachi Capital recorded lower new volume in
auto leasing and gains on sale of leased assets that were off
contract. Overseas business, meanwhile, was affected by the
economic downturn, particularly in North America and Europe,
and the impact of foreign currency movements. As a result,
business volume and earnings were lower year over year in all
four divisions.
Revenues
(Billions of yen)
Operating income
(Billions of yen)
Capital investment
(Property, plant and equipment)
and Depreciation
(Billions of yen)
n฀n Capital investment
(Property, plant and equipment)
฀ Depreciation
Assets
(Billions of yen)
Millions of yen
Millions of
U.S. dollars
FY2008 FY2007 FY2006 FY2008
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥412,040 ¥ 445,400 ¥ 500,065 $4,204
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,210 25,481 23,534 104
Capital investment (Property, plant and equipment) . . . . . . . . . . 361,549 495,389 554,853 3,689
Depreciation (Property, plant and equipment) . . . . . . . . . . . . . . 69,719 108,418 113,886 711
R&D expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295 1,287 1,513 3
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,366,909 2,294,020 2,442,066 24,152
Number of employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,834 4,605 4,554 –
06FY 07 08
500.0 445.4
412.0
06FY 07 08
23.5 25.4
10.2
06FY 07 08
554.8 495.3 361.5
113.8 108.4 69.7
06FY 07 08
2,442.0 2,294.0
2,366.9
23
Hitachi, Ltd.
Annual Report 2009
Financial Services
Main Products and Services
•฀Leasing
•฀Loan฀Guarantees
•฀Insurance฀Services
Hitachi Capital’s Multifunctional IC Card
Hitachi Capital Corporation provides IC card solu-
tions according to the needs of companies and
employees, including employee identification cards.