Financial Summary for the Fiscal Year Ending March 2026〔IFRS〕(Consolidated)

Overview of Performance

Consolidated revenue for the fiscal year ending March 2026 reached JPY 10.5867 trillion (up 8.2% YoY), supported by the expansion of the Lumada business and strong performance in the Energy, Digital Systems & Services, and Mobility sectors. Adjusted operating income was JPY 1.1992 trillion (up 23.4% YoY), Adjusted EBITA was JPY 1.3114 trillion (up 21.0% YoY), income before income taxes was JPY 1.2731 trillion (up 32.2% YoY), net income was JPY 851.4 billion (up 29.6% YoY), and net income attributable to owners of parent was JPY 802.3 billion (up 30.3% YoY), marking a significant profit increase. Basic earnings per share attributable to owners of parent were JPY 176.76, a 32% increase from the previous year.

Financial Position and Cash Flow Status

Total assets amounted to JPY 15.0412 trillion (an increase of JPY 1.7564 trillion from the previous fiscal year-end), and equity attributable to owners of parent totaled JPY 6.5683 trillion (an increase of JPY 721.2 billion). Interest-bearing debt was JPY 1.009 trillion (a decrease of JPY 197.0 billion), with a D/E ratio of 0.15. Cash flow from operating activities was JPY 1.668 trillion (an increase of JPY 495.8 billion), cash used in investing activities was JPY 341.5 billion (a decrease of JPY 232.0 billion), and cash used in financing activities was JPY 971.0 billion (an increase of JPY 546.9 billion), resulting in cash and cash equivalents increasing to JPY 1.3234 trillion.

Dividends and Capital Policy

The annual dividend for the fiscal year ending March 2026 was increased to JPY 50.00 from JPY 43.00 the previous year. At the Board of Directors meeting held on April 27, 2026, a resolution was passed to set an acquisition limit for treasury stock, planning to purchase up to 160 million shares (3.56% of total outstanding shares) on the market, with a maximum purchase amount of JPY 500 billion.

Business Segment Performance

The Digital Systems & Services, Energy, Mobility, and Connected Industries segments all recorded increases in revenue and profit. Particularly, profitability improvements in Energy and Digital Systems & Services along with the expansion of the Lumada business drove profit growth.

Future Outlook

For the fiscal year ending March 2027, the company expects revenue of JPY 11.1 trillion (up 4.8% YoY), adjusted operating income of JPY 1.315 trillion (up 9.6% YoY), and net income attributable to owners of parent of JPY 850 billion (up 5.9% YoY). The assumed exchange rates are JPY 150 per USD and JPY 175 per EUR. The company will accelerate global expansion of its Social Innovation Business and strengthen its management foundation.

Corporate Activities

On April 21, 2026, Hitachi entered into an agreement to transfer 80.1% of shares of a newly established company concerning the home appliance business to a special purpose company managed by Nojima Corporation. The sale price is approximately JPY 110 billion, and the transfer is scheduled to be completed during fiscal 2026. The business will be excluded from the consolidated scope and is not expected to qualify as an equity-method affiliate.