Hitachi, Ltd. - Recognition of Extraordinary Gain on Sales of Investment Securities on Unconsolidated Basis
January 29, 2024 at 03:32 pm
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Tokyo - Hitachi, Ltd. (TSE:6501) today announced that the Company will post the following gain on sales of investment securities (extraordinary gain) on unconsolidated basis that resulted from the sales of a part of the investment securities held by the Company
Reason for the Sales of Investment Securities
To reduce cross-shareholdings pursuant to its policy regarding cross-shareholdings.
Details of the Sales of Investment Securities
Securities to be Sold One listed stock held by the Company (Renesas Electronics Corporation)
Date of the Sales of the Securities January 26, 2024
Outlook
The Company will post a gain of 115.9 billion yen on the sales of the investment securities as extraordinary gain on unconsolidated financial statements for the fiscal year ending March 31, 2024
Since the Company adopts International Financial Reporting Standards (IFRS) in consolidated financial statements and classifies the investment securities as financial assets measured at fair value through other comprehensive income, the gain on the sales of the investment securities will not be recognized in its consolidated statements of profit or loss, hence there will be no impact on forecast of the consolidated financial results for the fiscal year ending March 31, 2024.
About Hitachi, Ltd.
Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the business structure of 'Digital Systems & Services' - supporting our customers' digital transformation; 'Green Energy & Mobility' - contributing to a decarbonized society through energy and railway systems, and 'Connective Industries' - connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through cocreation with our customers. The company's consolidated revenues for fiscal year 2022 (ended March 31, 2023) totaled 10,881.1 billion yen, with 696 consolidated subsidiaries and approximately 320,000 employees worldwide.
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 'forwardlooking statements,' as such statements speak only as of the date of this report.
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).
HITACHI, LTD. 
