Hitachi 2006 Annual Report Download - page 3

Hitachi, Ltd. Annual Report 2007 01
Highlights of the Year
Hitachi, Ltd. and Subsidiaries
Years ended March 31, 2007, 2006 and 2005
Cautionary Statement
Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking
statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or
current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify
“forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ
materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future
events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.
Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:
•increasing commoditization of information technology products, and intensifying price competition in the markets for such products, particularly in the Information & Telecommunica-
tion Systems segment, Electronic Devices segment and Digital Media & Consumer Products segment;
•fluctuations in product demand and industry capacity, particularly in the Information & Telecommunication Systems segment, Electronic Devices segment and Digital Media &
Consumer Products segment;
•uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technology on a timely and cost-effective basis and to achieve market acceptance
for such products;
•rapid technological change, particularly in the Information & Telecommunication Systems segment, Electronic Devices segment and Digital Media & Consumer Products segment;
•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 ability to implement measures to reduce the potential negative impact of fluctuations in product demand and/or exchange rates;
•general socio-economic and political conditions and the regulatory and trade environment of Hitachi’s major markets, particularly the United States, Japan and elsewhere in Asia,
including, without limitation, a return to stagnation or deterioration of the Japanese economy, or direct or indirect restrictions by other nations on imports;
•uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly those related to electronics and data processing technologies;
•uncertainty as to the results of litigation and legal proceedings of which the Company, its subsidiaries or its equity method affiliates have become or may become parties;
•the possibility of incurring expenses resulting from any defects in products or services of Hitachi;
• uncertainty as to the success of restructuring efforts to improve management efficiency and to strengthen competitiveness;
•uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and development of certain key
products;
• uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing; and
•uncertainty as to general market price levels for equity securities in Japan, declines in which may require Hitachi to write down equity securities it holds.
The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic filings with the U.S. Securities and Exchange Commission and in other
materials published by Hitachi.
Millions of
Millions of yen U.S. dollars
2007 2006 2005 2007
For the year:
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥10,247,903 ¥ 9,464,801 ¥9,027,043 $86,847
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182,512 256,012 279,055 1,547
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (32,799) 37,320 51,496 (278)
Cash dividends declared . . . . . . . . . . . . . . . . . . . . . . . . 19,974 36,641 36,462 169
At year-end:
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥10,644,259 ¥10,021,195 ¥9,736,247 $90,206
Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,442,797 2,507,773 2,307,831 20,702
Yen U.S. dollars
Per share data:
Net income (loss):
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ (9.84) ¥ 11.20 ¥ 15.53 $(0.08)
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9.87) 10.84 15.15 (0.08)
Net income (loss) per ADS (representing 10 shares):
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (98) 112 155 (0.83)
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (99) 108 151 (0.84)
Cash dividends declared . . . . . . . . . . . . . . . . . . . . . . . . 6.0 11.0 11.0 0.05
Cash dividends declared per ADS
(representing 10 shares) . . . . . . . . . . . . . . . . . . . . . . . 60 110 110 0.51
Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . 734.66 752.91 692.73 6.23
Notes: 1. The consolidated figures in this annual report are expressed in yen and, solely for the convenience of the reader, have been translated into United States dollars at the
rate of ¥118=U.S.$1, the approximate exchange rate prevailing on the Tokyo Foreign Exchange Market as of March 30, 2007. See note 3 of the accompanying notes to
consolidated financial statements.
2. In order to be consistent with financial reporting principles and practices generally accepted in Japan, operating income 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 and special termination benefits are included as part of operating income. 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.