Hitachi 2004 Annual Report Download - page 30

Geographic Segments
Millions of
Millions of yen U.S. dollars
2005 2004 2003 2005
Revenues
Japan Outside customer revenues . . . . . . . . . . . . . . . ¥ 6,598,002 ¥6,364,411 ¥6,290,654 $61,664
Intersegment transactions . . . . . . . . . . . . . . . . 937,814 854,532 1,026,916 8,764
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,535,816 7,218,943 7,317,570 70,428
Asia Outside customer revenues . . . . . . . . . . . . . . . 1,059,197 993,471 651,228 9,899
Intersegment transactions . . . . . . . . . . . . . . . . 388,249 312,153 351,006 3,629
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,447,446 1,305,624 1,002,234 13,528
North America Outside customer revenues . . . . . . . . . . . . . . . 798,266 784,782 802,582 7,460
Intersegment transactions . . . . . . . . . . . . . . . . 34,224 25,894 38,753 320
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 832,490 810,676 841,335 7,780
Europe Outside customer revenues . . . . . . . . . . . . . . . 470,792 404,278 379,615 4,400
Intersegment transactions . . . . . . . . . . . . . . . . 20,015 32,949 28,382 187
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490,807 437,227 407,997 4,587
Other Areas Outside customer revenues . . . . . . . . . . . . . . . 100,786 85,508 67,673 942
Intersegment transactions . . . . . . . . . . . . . . . . 3,545 2,655 2,645 33
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,331 88,163 70,318 975
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,410,890 9,860,633 9,639,454 97,298
Eliminations & Corporate items . . . . . . . . . . . . (1,383,847) (1,228,183) (1,447,702) (12,933)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,027,043 8,632,450 8,191,752 84,365
Operating income (note 2)
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 274,389 ¥ 177,102 ¥ 155,684 $ 2,565
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,538 33,363 18,357 257
North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,188 4,733 6,336 95
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,382 10,512 6,720 153
Other Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,260 3,245 2,097 31
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331,757 228,955 189,194 3,101
Eliminations & Corporate items . . . . . . . . . . . . (52,702) (44,092) (36,227) (493)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279,055 184,863 152,967 2,608
Revenues by Market
Millions of
Millions of yen U.S. dollars
2005 2004 2003 2005
Japan Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥5,749,603 ¥5,654,856 ¥5,546,543 $53,735
Percentage of Total Revenues (%) . . . . . . . . . 64 66 68
Outside Japan Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,406,883 1,212,844 1,017,439 13,148
Percentage of Total Revenues (%) . . . . . . . . . 15 14 12
North America . . . . . . . . . . . . . . . . . . . . . . . . 901,855 873,243 890,684 8,429
Percentage of Total Revenues (%) . . . . . . . . . 10 10 11
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 709,770 655,824 537,029 6,633
Percentage of Total Revenues (%) . . . . . . . . . 877
Other Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . 258,932 235,683 200,057 2,420
Percentage of Total Revenues (%) . . . . . . . . . 332
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,277,440 2,977,594 2,645,209 30,630
Percentage of Total Revenues (%) . . . . . . . . . 36 34 32
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,027,043 8,632,450 8,191,752 84,365
Notes: 1. This information is disclosed in accordance with a ministerial ordinance under the Securities and Exchange Law of Japan.
2. In order to be consistent with financial reporting principles and practices generally accepted in Japan, operating income (loss) is presented as total revenues less cost
of sales and selling, general and administrative expenses. The Company believes that this is useful to investors in comparing the Company’s financial results with those
of other Japanese companies. Under accounting principles generally accepted in the United States of America, restructuring charges, net gain or loss on sale and
disposal of rental assets and other property, impairment losses, special termination benefits and the losses resulting from the remeasurement of the obligation upon
adoption of EITF Issue No. 03-2, “Accounting for the Transfer to the Japanese Government of the Substitutional Portion of Employee Pension Fund Liabilities,” are
included as part of operating income (loss). See the consolidated statements of operations and notes 18, 19 and 20 to the consolidated financial statements. The
restructuring charges mainly represent special termination benefits incurred with the reorganization of the business structures, and as the result of the Company and
its subsidiaries reviewing and reshaping the business portfolio.
26 Hitachi, Ltd. Annual Report 2005