Q3 2006 Hitachi Limited Earnings Presentation Webcast (English) - Part 1.

(From Fair Disclosure Wire)

UNIDENTIFIED COMPANY REPRESENTATIVE: We'd like to thank you for coming to the FY2007 third quarter business results and presentation. We'd like to thank you for your time. Let me introduce the members seated at the front table. We have Executive Vice President and Executive Officer, Mr. Takashi Hatchoji and also Executive Vice President and Executive Officer, Mr. Takashi Miyoshi, and General Manager of the Finance Division [One] Mr. Toyoaki Nakamura. Let me go over the handouts which we have put in your hands. We have first the third quarter business results outline, consolidated results and news release, and then a supplement for the third quarter business results, and Information and Telecommunications, Display, Digital Media and Consumer Products supplements and material. There is also material on the Board of Directors structural change and change in Directors and Executive Officers, personnel reshuffle. We would like to first have Mr. Miyoshi give the outline of the business results and the circumstances surrounding the business results, followed by Mr. Hatchoji's presentation on changes in business presentation meetings for the important businesses. And after that we'd like to entertain questions. We calculated to close at 18.00 hours approximately. So, Mr. Miyoshi, please. TAKASHI MIYOSHI, EXECUTIVE VICE PRESIDENT AND EXECUTIVE OFFICER, HITACHI LIMITED: (interpreted) The third quarter business results have been put together, so I should like to report on them. If you could turn to your material that's FY2007 third quarter consolidated business results are prepared according to U.S. GAAP. That's the first material. Please refer to this. As for the third quarter I shall be explaining this later on. And so at the bottom of this page we have the full-year outlook. The numbers for the full year have not changed since we've announced these earlier. Our third quarter actuals will now be explained. The third quarter itself was such that the full-year outlook compared to the medium-term outlook, we have exceeded the levels that we have forecast, but electronics prices have come down. Raw materials -- materials have gone up and so power sector and other sector businesses will be affected. And we are putting into place various measures and implementing them. But they are factors of concern. So therefore we have not changed the full-year outlook. Now the third quarter situation I'd like to address. The news release if you can refer to this. The consolidated statement of income, the profit and loss statement, please refer to this. Our revenue was JPY2,488.345b. Year on year this is a 110% -- a 10% increase in income. On the domestic scene, 108%, overseas 113%. So in the third quarter we have seen an increase in income by 8% on the domestic scene. And Information and Telecommunications, Financial Services, Urban Planning and Development business organization reform, because of these factors we have increased 8% the revenue in Japan. Overseas was 113%, different regions, Asia, North America, Europe in the respective regions, higher Digital Display, Materials, Construction Machinery, our Urban Planning and Development and Storage, in all these areas we have seen an increase in income. Now, operating income based on this revenue was such that the JPY61.5b was the figure. Year on year this was an increase of JPY22.4b. As for other income, in the third quarter we have seen no major changes. As a result, net income before tax was JPY62.6b. Year on year, a slight increase in income. As for income tax and the percentage of income tax to income in the third quarter was 58%. Year on year the percentage is 59.4%. Normally it's about 40%, a little over 40%. So the percentage is still high. And as we have always been saying Hard Disk Drive business and in other businesses we cannot obtain a tax effect. And so the percentage is high and the situation continues. As a result, income before minority interests is JPY26.3b. Year on year this is a JPY2.1b increase. But if you look below that, if you look at the minority interest, well…