Product Excellence and Global Expansion - Hitachi Koki Co., Ltd.

ANNUAL
REPORT
2 0 1 0
For the year ended
March 31, 2010
Product Excellence and
Global Expansion

Profile
The main activities of Hitachi Koki Co., Ltd. are manufacturing and selling power tools.
The Company also manufactures and sells life-science instruments. As a result of
continuous R&D and human resource development, we have acquired core technology
leadership in ultra-high-speed motors, ultra-high precision machining and electronic
control technology. Above all, Hitachi Koki seeks to reinforce the competitiveness of its
present business fields and probe into new, but related fields to ensure its position as a
major player of the industry.
High-pressure
air compressor
High-pressure
coil nailer
Cordless driver drill
Financial Highlights
Hitachi Koki Co., Ltd. and consolidated subsidiaries
Fiscal Years Ended March 31, 2010, 2009 and 2008
2010
Millions of yen / Percent Percent change
Thousands of
U.S. dollars (Note)
2009
2008
2010/2009
2010
For the year:
Net sales.................................................
¥119,166
¥142,013
¥174,756
(16.1)%
$1,280,804
Operating income....................................
5,184
12,220
22,321
(57.6)
55,718
Operating margin.....................................
4.4%
8.6%
12.8%
Net income..............................................
3,333
5,034
15,561
(33.8)
35,823
At year-end:
Total assets .............................................
148,982
152,553
167,501
(2.3)
1,601,268
Net assets...............................................
112,141
112,276
121,887
(0.1)
1,205,299
Yen
U.S. dollars (Note)
2010
2009
2008
2010/2009
2010
Per share data:
Net income..............................................
¥ 32.88
¥ 49.66
¥ 150.90
(33.8)%
$ 0.35
Cash dividends........................................
24.00
41.00
45.00
(41.5)%
0.26
Net assets...............................................
1,096.75
1,097.81
1,180.02
(0.0)%
11.79
Note: U.S. dollar amounts have been converted from yen, for convenience only, at the rate of ¥93.04=U.S.$1, the Tokyo foreign exchange market rate at March 31, 2010.

Contents
Financial Highlights....................... inside front cover
To Our Shareholders and Customers........................ 2
Feature: Hitachi Koki’s Growth Strategy.................... 4
Review of Operations.................................................. 5
Research and Development........................................ 7
Corporate Governance................................................ 8
Financial Section
Management’s Discussion and
Analysis of Operations........................................... 10
Consolidated Balance Sheets................................ 14
Consolidated Statements of Income..................... 16
Consolidated Statements of
Changes in Net Assets........................................... 17
Consolidated Statements of Cash Flows.............. 18
Notes to Consolidated Financial Statements........ 19
Independent Auditors’ Report............................... 31
Global Network............................................................ 32
Corporate Data............................................................ 34
Investor Information................................................... 35
Chain saw
Cordless shrub shear
Net Sales
(Billions of yen)
200
Operating Income/Operating Margin
(Billions of yen)
(%)
24
20
Net Income
(Billions of yen)
20
150
119.1
18
15
15
100
12
10
4.4
10
50
0
2006 2007 2008 2009 2010
6
0
Operating Income (left scale)
Operating Margin (right scale)
5
5.1
0
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
5
0
3.3
Total Assets/Net Assets
(Billions of yen)
200
Cash Dividends per Share
(Yen)
60
Net Sales by Region
(Year ended March 31, 2010)
150
100
148.9
112.1
45
30
24.0
Asia/
Others
12.5%
Japan
30.9%
50
0
0
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Total Assets
Net Assets
15
Europe
37.2%
North
America
19.4%
Hitachi Koki ANNUAL REPORT 2010
1

To Our Shareholders and Customers
Business Results
Yasuyuki Konishi
Chairman of the Board &
Director, CEO
Kiyoshi Kato
President & Director, COO
Under its new leadership structure*, the
Hitachi Koki Group’s basic management
policy will continue to be to contribute to
society by offering innovative products
that meet specific user needs and are
easy to use, as well as delivering
services that create a high level of
customer satisfaction. As a global
enterprise actively expanding worldwide,
the Group is providing power tools and
other products of high performance and
quality. In addition, as a member of
society, the Group is working to
strengthen compliance and steadfastly
uphold corporate ethics throughout
Group businesses, based on its
corporate creed of the “Basic Principles
and the Path of Virtue,” with the goal of
being a socially trusted enterprise.
* On June 25, 2010, Yasuyuki Konishi was appointed Chairman of the
Board & Director, CEO and Kiyoshi Kato was appointed President &
Director, COO of Hitachi Koki Co., Ltd.
During fiscal 2009, ended March 31, 2010, national
governments worked out and implemented economic stimulus
packages to recover from the rapid and widespread economic
downturn in the second half of fiscal 2008. As a result, the
economic decline was generally halted and signs of recovery
appeared, mainly in emerging nations, though results differed by
country. However, the operating environment was challenging,
with stagnation due to persistently high unemployment and
sluggish income growth in the Hitachi Koki Group’s main
markets of Japan and the United States, the weak economy in
Eastern Europe and the impact of a strong yen on foreign
currency translation.
In these conditions, the Hitachi Koki Group expanded
transactions with home centers and major retail outlets capable
of attracting large numbers of customers and endeavored to
secure new customers in emerging nations. Business results
generally recovered in Western Europe, Australia and other
areas that bottomed out in the fourth quarter of fiscal 2008,
while Russia showed signs of recovery. However, due to the
major impact of the protracted slowdown in housing investment
in the United States and Japan, and the low levels of results in
Eastern Europe and the Middle East, net sales decreased
compared with the previous fiscal year.
As for income, in addition to thorough reductions of the cost
of goods, the Hitachi Koki Group worked to cut costs and
strengthen profitability by shifting production to factories in
China and other methods, but the decrease in sales led to a
substantial decline in income.
As a result of the aforementioned factors, on a consolidated
basis for fiscal 2009, net sales decreased 16% from the
previous fiscal year, to ¥119,166 million, operating income
decreased 58%, to ¥5,184 million, income before income taxes
and minority interests decreased 34%, to ¥6,040 million, and
net income decreased 34%, to ¥3,333 million.
Shareholder Returns
Decisions to distribute profits to shareholders and retain
earnings are made after taking full account of future business
plans, performance, financial conditions, and other factors. In
addition, Hitachi Koki strives for the efficient allocation of
retained earnings, concentrating investments on core products
and technologies and on rationalizing facilities as well as on
M&A transactions expected to produce synergistic benefits and
promote growth in the scale of business operations.
Regarding cash dividends, Hitachi Koki pays quarterly
dividends in an effort to be swift and proactive in returning
profits to shareholders. Hitachi Koki takes a comprehensive
view of factors including changes in the operating environment,
2 Hitachi Koki ANNUAL REPORT 2010

future business plans, business results and financial condition in
considering dividend payments as it works to continue paying
annual dividends that are as stable as possible.
Initiatives Going Forward
Looking at fiscal 2010, a moderate recovery trend is forecast
with economic stimulus packages in various countries expected
to continue for the time being, but causes for concern remain in
some regions, particularly in Europe, and conditions remain
impossible to predict. Currency fluctuations with an
unexpectedly weak euro and strong yen, China’s revaluation of
the yuan, high raw material prices and other persistent concerns
mean that the outlook remains uncertain.
Amid such conditions, the Hitachi Koki Group will promote a
variety of management initiatives, including measures to
strengthen sales, product development and cost
competitiveness to respond to currency fluctuations, with the
goal of securing and improving performance in order to build a
resilient corporate structure that will prevail amid intensifying
global competition. In particular, in light of the current severe
marketing environment, the Group will focus on measures to
improve profitability. In addition, while enhancing environmental
management through integrated manufacturing and sales, and
the expansion of the range of ISO 14001 certification, the Group
will pursue environmental protection activities, including
reducing waste, promoting energy conservation in business
activities, and progressively developing eco-friendly products.
Medium-to-long-term management strategies and issues to
be dealt with are outlined below.
(1) The Group will promote the development of strategic
products that accurately target customer needs and
innovative products that rivals cannot produce by
strengthening marketing activities and product development
efforts, and will introduce profitable new products to the
market as quickly as possible.
(2) In the outdoor power equipment and gardening tools
business, the Group will upgrade its operating base for major
business expansion. As it works to strengthen production in
China and enhance profitability through overall cost
reductions, the Group will move forward swiftly in developing
new products and establishing and strengthening effective
sales channels as a pillar of the Group’s business expansion.
(3) In the area of lithium-ion battery-operated products that
incorporate the Group’s original multi-layered safety
structure, the Group will extend the wide range of its product
series centered on products incorporating e-motors, which
offer increased workloads per charge and high durability, and
will aggressively work to establish Hitachi as a global brand
in lithium-ion battery-operated products.
(4) The Group will accurately determine region-specific
economic trends and country risk to continuously grow sales
and expand the scale of its business by working to further
increase sales in its three major markets of Japan, North
America and Europe, as well as Russia, India, China and
other countries, and by conducting aggressive and timely
measures including opening and deepening new store sales
channels in regions such as the Middle East and Central and
South America, which are emerging markets for the Group.
(5) The Group will structure a global manufacturing network by
establishing plants in optimal locations in consideration of
appropriate risk diversification in light of forecasts of a
revaluation of the Chinese yuan. At the same time, the Group
will take steps to improve its cost competitiveness in ways
such as carrying out production reforms at its manufacturing
plants in Japan and overseas, and implementing
thoroughgoing measures to reduce production costs, thereby
ensuring its earnings power and a stable product supply
framework.
(6) The Group will step up efforts in the power tools, outdoor
power equipment and gardening tools, and accessories
(consumables) businesses, as it works to further expand its
operational scale in these businesses, which represent a
total market of about ¥4 trillion, by leveraging the Group’s
technologies and R&D capabilities as well as its network of
manufacturing plants and sales offices. The Group will
seriously consider M&A and business alliances as an
important strategy.
(7) The Group will aim for growth in Life-Science Instruments as
a high-earning business, aggressively developing high-valueadded
products that use its advanced technical capabilities.
While the Group seeks to expand its operations to become a
major global player, it also believes the pursuit of high
profitability is a necessary condition to achieving the sustained
growth and development of its businesses. Consequently, the
Group targets a consolidated operating margin of not less than
10%, thereby further raising its corporate value.
We thank you for your continued support and understanding.
Yasuyuki Konishi
Chairman of the Board & Director, CEO
Kiyoshi Kato
President & Director, COO
Hitachi Koki ANNUAL REPORT 2010
3

Feature:
Hitachi Koki’s Growth Strategy
The Hitachi Koki Group is aiming for a major expansion of its outdoor power equipment and
gardening tools so they can become the driving force behind future strategic growth. The
Group will realize steady growth by using its advanced technical capabilities to
focus on developing original new products not being produced by other
companies, accelerating global development, and actively expanding
sales in newly emerging markets where growth potential is high.
Growth of Outdoor Power Equipment and Gardening Tools
Outdoor power equipment and gardening tools,
which have large markets and are comparatively
unaffected by economic volatility, will undergo a
major expansion so they can become the driving
force behind future strategic growth. The framework
for bolstering production capacity in China is finally
in place and the product lineup is being assembled.
In the future, the Group will further strengthen its
products so they are price competitive and conform
with secondary exhaust emission regulations in
Europe and the U.S., and aggressively expand its
sales channels globally.
Outdoor power equipment
¥10.0
¥9.0
billion
¥7.9
billion
billion
2008
2009
2010
0
Launching Original New Products
Using the strengths of Hitachi Koki’s
development abilities, we will regularly launch new
products not being produced by other companies,
including new cordless tools, mainly lithium-ion
battery-operated products, and gas nailers. These
measures are aimed at broadening our customer
base and increasing market share. We particularly
want to nurture lithium-ion battery-operated
products in the belief that they can join outdoor
power equipment and gardening tools as a major
pillar supporting our business results.
Lithium-ion
battery-operated products
¥22.7
¥20.7 ¥21.7
billion
billion billion
2008
2009
2010
Accelerating Global Development
By region, in our three main markets of Japan, the United States and Europe, we will
focus our attention on new business and growth in transactions with major home
centers and major retail outlets with sales capabilities in the hope of increasing sales. In
the emerging nations of Russia, India and China, the Group will aggressively strengthen
sales power, develop new business partners and promote products in order to further
raise its presence. In Central and South America, we will establish a new base in Brazil,
the largest market in the region, and we will commence full-fledged marketing.
Further enhan
the lineup with
products with
brushless mot
and others
4 Hitachi Koki ANNUAL REPORT 2010
Actively introduce
products that meet
exhaust gas
regulations and
products in line with

Review of Operations
The Hitachi Koki Group has implemented aggressive and
effective management strategies to respond swiftly to the
rapidly changing business environment as it continues to
pursue improved operating results and growth potential
from its businesses.
Business Overview
For 60 years, the core Power Tools segment has remained
committed to providing products that rank among the best in
the world in terms of quality and performance. Many of these
products have earned recognition as indispensable ‘‘premium”
tools and are highly evaluated by both professionals and do-ityourself
(DIY) users throughout the world for features including
durability, user-friendliness, low vibration and low noise.
In the Life-Science Instruments segment, the broad line-up
of products that range from the world’s fastest ultracentrifuge
to low-speed compact centrifuges has achieved a high level of
support in biotechnology and other markets both in Japan and
abroad. Recently, the segment’s strengths in areas including
protein structure analysis and research, and vaccine research
and production, have come to the fore.
With the goal of creating tools that will lead the
industries of tomorrow, we strive to add further value to
products through newly created technologies and
designs as well as our abundant know-how and the
superior technologies we possess.
Review of Operations by Geographic Area
During fiscal 2009, the Hitachi Koki Group expanded
transactions with home centers and major retail outlets
capable of attracting large numbers of customers and
endeavored to secure new customers in emerging nations.
Business results generally recovered in Western Europe,
Australia and other areas that bottomed out in the fourth
quarter of fiscal 2008, while Russia showed signs of recovery.
However, due to the major impact of the protracted slowdown
in housing investment in the United States and Japan, and the
low levels of results in Eastern Europe and the Middle East,
net sales decreased compared with the previous fiscal year.
As for income, in addition to thorough reductions of the
cost of goods, the Hitachi Koki Group worked to cut costs and
strengthen profitability by shifting production to factories in
China and other methods, but the decrease in sales led to a
substantial decline in income.
Japan
In Japan, the Hitachi Koki Group
worked to expand sales of lithium-ion
battery-operated cordless tools and to
open new sales channels. However, sales
decreased 10% from the previous fiscal
year to ¥36,802 million with the impact
of cooling housing investment and weak
capital investment.
Cordless impact driver
WH 14DBAL
Hitachi Koki ANNUAL REPORT 2010
5

Review of Operations
North America
In North America, although the Group worked aggressively to
strengthen alliances in the home center channel and develop major
retail outlets, sales decreased 15% from the previous fiscal year to
Cordless driver drill
DS 14DSFL
¥23,068 million with the impact of stagnation in housing
investment in the United States.
Europe
In Europe, although the Group worked to expand transactions at major home
centers in Germany, France and elsewhere, and to expand sales of outdoor power
equipment in Russia and Germany, sales decreased 21% from the previous fiscal
year to ¥44,387 million with ongoing challenging conditions in Eastern
Europe and the impact of foreign currency translation.
Demolition hammer
H 65SB2
Asia and Other Areas
In Asia and other regions, sales on a local-currency basis were
comparatively steady in regions including India and Australia, but sales
decreased 17% from the previous fiscal year to ¥14,906 million as a
Disc grinder
G 12SQ
result of the sudden worsening of the Middle Eastern economy and
the impact of foreign currency translation.
New Products
Lithium-ion Battery-operated Product Series
The Hitachi Koki Group will work to expand its market share by focusing on
developing new products that its competitors do not have, including
lithium-ion battery-operated products.
Cordless brushcutter
CG 14DSL
Cordless Brushcutter
(CG 14DSL/CG 14DSAL)
This new-generation rechargeable brushcutter emits no exhaust gas. A newly developed thin,
high-efficiency disk motor is powerful yet quiet. This model can be used continuously for twice as long as
existing models and it is lightweight with little vibration, enabling operation over many hours. It is perfect
for use in residential areas and meets a wide variety of requirements.
Electronic Pulse Driver (WM 14DBL)
The Hitachi Koki Group has developed a low-noise, multi-functional driver that meets the
requirements of renovation and construction in residential areas. The driver achieves quiet operation
through the use of the latest microcomputer control technology and the industry’s first electronic
pulse method. In addition, its dial operation simplifies changing among screw tightening, hole
drilling, or other functions for ideal operation for each application.
6 Hitachi Koki ANNUAL REPORT 2010
Electronic pulse driver
WM 14DBL

Research and Development
The central focus of the Hitachi Koki Group’s R&D is to take full advantage of
three-dimensional digital engineering to promote the continuous development of
best-selling global products that offer superior performance, quality and durability,
high speed, low noise and vibration, user-friendliness and advanced design that
meet user needs. While respecting the creativity of our researchers, we are
committed to the development of leading-edge technologies that
not only help secure market share, but also ensure that we
remain at the forefront of the industry in terms of the
technologies supporting our products.
The Group’s R&D activities are centered on Hitachi Koki’s
Research and Development Division. In fiscal 2009, ¥3,239 million,
or 2.7% of consolidated net sales, was allocated to expenses
associated with the R&D of new products and technologies.
The main products that the Group developed and
subsequently introduced in fiscal 2009 are listed below.
Power Tools-Related
Enhancing Hitachi Koki’s lineup of cordless products with our original
multi-layered safety structure for lithium-ion batteries
• A quiet, high-efficiency oil pulse driver with a highly functional oil pulse unit
manufactured in-house.
• Driver drills and an impact wrench with a strong and efficient brushless e-motor.
Oil pulse unit
Coreless motor
CG 14DSL /
CG 14DSAL
Laser liner
UG 25SG
Development of eco-friendly outdoor power equipment and gardening tools
• A low-noise, low-vibration, highly efficient and lightweight brushcutter equipped
with Hitachi Koki’s original flat coreless motor (disc motor), which emits
no exhaust gas.
• Chain saws and grasstrimmers/brushcutters with a next-generation, low-exhaust
2-cycle engine that conforms to secondary exhaust emission regulations in
Japan, Europe and the U.S.
• A grasstrimmer/brushcutter equipped with a new-generation, small 4-cycle
engine that emits even less exhaust.
Product Design
• Hitachi Koki also puts its strength into product design, winning five of the globally
influential European iF Product Design Awards and, domestically, winning Good
Design Awards for 21 consecutive years. In addition, Hitachi Koki’s laser liner
UG 25SG equipped with a green laser offering high visibility was a Vol.10/2008 JDM
Selection for the JIDA Design Museum Selection*, and will remain in the
museum for perpetuity.
* The Japan Industrial Designers’ Association hosts the JIDA Design Museum
Selection, choosing products with outstanding designs to be preserved and
passed on to the future.
Life-Science Instruments-Related
Development of a production-use ultracentrifuge for vaccines with improved
functionality that uses a touch-panel computer for operation.
Large-scale continuous
flow ultracentrifuge
CC40NX
Hitachi Koki ANNUAL REPORT 2010
7

Corporate Governance
Accounting Auditors
Basic Policy on Corporate Governance
Aiming to establish a framework for rapid and accurate
management decision-making and for operational
performance, as well as to enhance the management
oversight function, Hitachi Koki is working to strengthen the
important management area of corporate governance and
upgrade its internal controls. The Company has established a
Compliance Division for complete compliance with laws and
regulations. In addition, we have set the Hitachi Koki Standards
for Corporate Conduct as a basis for all operations and have
made clear our basic philosophy and operating guidelines.
Based on a comprehensive consideration of factors
including the scale of the Company’s operations and its officer
system, Hitachi Koki has adopted the format of a company
with a board of corporate auditors and has established a
general shareholders’ meeting, directors and Board of
Directors’ meetings, corporate auditors and Board of Auditors’
meetings, and accounting auditors in order to fully deploy its
corporate governance functions and to maintain superior
operating efficiency.
Initiatives to Strengthen
Corporate Governance
Board of Directors
Auditing
The Board of Directors meets once a month in principle. It
General Meeting of Shareholders
Board of Auditors
• Auditors
• External Auditors
Reporting
Auditing Office
Supervision
Control
Internal Control Office
Compliance Division
Export Management
Office, etc.
Control
Auditing
Control
Reporting
Reporting
Auditing
Guidance
Reporting
Board of Directors
• Directors
Management
Supervision
Management Committee
Management
Deliberation Committee
Control
Supervision
Headquarters,
divisions, offices,
departments
Guidance
Consultation
Guidance
Consultation
Corporate Lawyer
makes decisions regarding key Company and Group
operational performance issues and supervises the
performance of representative directors and directors.
Board of Auditors
The Board of Auditors meets once a month in principle to
report on the status of audits. Auditors also attend Board of
Directors’ meetings and other key meetings to listen to
directors about the status of their performance, in compliance
with the corporate auditing standards set by the Board of
Auditors and in line with auditing guidelines and schedules.
Further, members exchange ideas in close cooperation with
the accounting auditors and receive from them accounting
schedules and reports on corporate and auditing results.
Management Committee
The Management Committee is under the Board of
Directors. It comprises directors and executive officers and
meets twice a month in principle. The Committee makes
substantive decisions on key management issues for the
Company and the Group based on the basic guidelines
decided on by the Board. Standing corporate auditors also
attend for auditing purposes.
Budget
Budget items are deliberated by the Management
Committee, the Budget Deliberation Committee and the Main
Budget Committee. In addition, a Management Deliberation
1) General Meeting of Share
2) Board of Directors
Committee composed of Management Committee Directors members
3) Guidance
also meets when necessary. The Management Deliberation
4) Consultation
Committee listens to reports on key management 5) issues in Corporate all Lawyer
6) Management
business areas, deliberates on them and provides 7) advice. Supervision
8) Management Committee
Management Deliberation Committee
Regulatory Compliance
9) Control
10) Headquarters, divisions, o
Hitachi Koki has determined guidelines for conduct Consolidated and subsidiaries, etc.
other measures based on regulatory compliance 11) in operational Auditing
12) Reporting
performance, established a Regulatory Compliance 13) Division, Board of Auditors
Auditors
established and trained employees on operational
External Auditors
performance rules and guidelines, and created and 14) distributed Auditing Office
15) Compliance Division
manuals. At the same time, the Internal Auditing Export Division Management Office, etc.
provides a framework for auditing operational performance.
16) Accounting auditors
Guidance
The Company also employs a compliance Consultation reporting system,
and works to prevent involvement in anti-social transactions.
8 Hitachi Koki ANNUAL REPORT 2010

Management Team (As of June 25, 2010)
Chairman of the Board &
Director, CEO
Yasuyuki Konishi
Board Director, CFO
Mitsuo Takahagi
President & Director, COO
Kiyoshi Kato
Board Director
Chikai Yoshimizu
Senior Vice-President & Director
Takaharu Miyata
Board Director
Katsuhiko Ogi
Senior Vice-President & Director
Akihiko Nozaki
Board Director
Takahito Ishizuka
Senior Vice-President & Director
Tsuneyuki Hida
Corporate Auditor
Masabumi Takeuchi
Vice-President & Director, CIO
Toru Inoue
Corporate Auditor
Naoki Ogawa
Vice-President & Director, CTO
Fumio Tashimo
Corporate Auditor
Takashi Hatchoji
Board Director
Osami Maehara
Corporate Auditor
Shunichi Uno
Environmental Protection Activities
Eco-Products, one of Japan’s largest
environmental exhibitions
Elementary school students from
Hitachinaka on a company study tour view
the final stage of product manufacturing.
The Hitachi Koki Group has long recognized the importance of the environment
and has been proactively promoting environmental protection activities. In recent
years, we have stepped up efforts to provide eco-friendly products and to reduce
the environmental impact of our production.
The Hitachi Koki Group’s basic policies regarding the environment are formulated
as company regulations under the Hitachi Koki Environmental Preservation Action
Guidelines. These guidelines inform our officers and employees how they should
conduct themselves. Under the medium-term plan for the environment, the
Environmental Committee, which is headed by the General Manager of the
Corporate Environmental Policy Division, deliberates and makes decisions on
environmental guidelines and targets. In addition to members from manufacturing
units, Environmental Committee participants include representatives from sales
units such as Japanese branch stores, and Group companies such as Hitachi Koki
Sales Co., Ltd., Sankyo Diamond Industrial Co., Ltd. and Nikko Tanaka Engineering
Co., Ltd. Overseas manufacturing affiliates have made progress in acquiring
ISO14001 certification, with five companies now certified. Manufacturing and sales
units are thus working as one, and all Group companies are promoting
environmental activities.
In fiscal 2009, the Hitachi Koki Group promoted vigorous environmental activities
at all levels, including “Eco-products” with design for the environment, “Eco
factories & offices,” which help in areas such as prevention of global warming, and
‘‘Environmental partnerships” with stakeholders in areas such as communication.
Through these efforts, we achieved our overall targets, with particularly notable
results in reducing CO2 emissions, electricity consumption and wastes.
The Hitachi Koki Group considers environmental protection activities to be
among its most important management responsibilities. We will continue
promoting these activities across the Hitachi Koki Group and are confident of
further improvements.
Hitachi Koki ANNUAL REPORT 2010
9

(Billions of yen) (%)
Management’s Discussion and
Analysis of Operations
Net Sales/Overseas Sales Ratio
Operating Results
Annual Dividends per Share
(Billions of yen) (%)
(Yen)
The Hitachi Koki Group expanded transactions with home centers and major retail
200
80
50
69.1
outlets capable of attracting large numbers of customers and endeavored to secure
150
60
40
new customers in emerging nations. Business results generally recovered in
119.1
Western Europe, Australia and other areas that bottomed out in the fourth quarter of
30
100
40
fiscal 2008, while Russia showed signs 24.0 of recovery. However, due to the major
20
impact of the protracted slowdown in housing investment in the United States and
50
20
Japan, and the low levels of results in Eastern Europe and the Middle East, net sales
10
decreased compared with the previous fiscal year. As for income, in addition to
0
2006 2007 2008 2009 2010
Net Sales (left scale)
Overseas Sales Ratio (right scale)
0
thorough
0
reductions 2006 2007 of the 2008cost 2009 of 2010 goods, the Hitachi Koki Group worked to cut
costs and strengthen profitability by shifting production to factories in China and
other methods, but the decrease in sales led to a substantial decline in income.
In view of the aforementioned factors, on a consolidated basis for fiscal 2009,
net sales decreased 16% from the previous fiscal year, to ¥119,166 million,
operating income decreased 58%, to ¥5,184 million, income before income taxes
and minority interests decreased 34%, to ¥6,040 million, and net income
decreased 34%, to ¥3,333 million.
Total Assets/ROA
In
Net
the Power
Assets/ROE
Tools segment, sales decreased 17% from the previous fiscal year
(Billions of yen)
(%)
(Billions of yen) (%)
and operating income decreased 67%.
200
20
150 30
In Japan, the Hitachi Koki Group worked to expand sales of lithium-ion batteryoperated
cordless tools and to open 112.1
148.9
150
15
new sales channels. However, sales decreased
100 20
12% from the previous fiscal year with the impact of cooling housing investment
100
50
10
5
and weak capital investment. In North America, although the Group worked
aggressively to strengthen alliances in the home center channel and develop major
50 10
retail outlets, sales decreased 15% from the previous fiscal year with the impact of
2.2
stagnation in housing investment in the 3.0
United States. In Europe, although the
0
0
Group worked
0
to expand transactions at major
0
2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
home centers in Germany, France
Total Assets (left scale)
and elsewhere, Net Assets and to (left expand scale)
Annual Dividends per Share
sales of outdoor power equipment in Russia and
ROA (right scale)
ROE (right scale)
Germany, sales decreased 21% from the previous fiscal year with ongoing
(Yen)
50
challenging conditions in Eastern Europe and the impact of foreign currency
translation. In Asia and other regions, sales on a local-currency basis were
40
30
20
Capital Expenditures
(Billions 10 of yen)
5
24.0
comparatively steady in regions including India and Australia, but sales decreased
19% from the previous fiscal year as a result of the sudden worsening of the Middle
Eastern economy and the impact of foreign currency translation.
In the Life-Science Instruments segment, challenging market conditions
including weak capital investment continued in Japan, but demand from
universities and government research facilities picked up toward the end of the
0
4
3
2
2006 2007 2008 2009 2010
2.1
fiscal year. Overseas, with the effect of new product launches and active
expansion of sales of large-scale ultracentrifuges for vaccine production, sales
were firm and business results improved. As a result of these factors, segment
sales increased 3% from the previous fiscal year, operating income increased 9%,
and the operating margin improved.
1
0
2006 2007 2008 2009 2010
10 Hitachi Koki ANNUAL REPORT 2010
Net Assets/ROE

Policy on Returns to Shareholders and Dividends
Decisions to distribute profits to shareholders and retain earnings are made after
taking full account of future business plans, performance, financial conditions, and
other factors. In addition, Hitachi Koki strives for the efficient allocation of retained
earnings, concentrating investments on core products and technologies and on
rationalizing facilities as well as on M&A transactions expected to produce
synergistic benefits and promote growth in the scale of business operations.
Regarding cash dividends, Hitachi Koki pays quarterly dividends in an effort to be
swift and proactive in returning profits to shareholders. Hitachi Koki takes a
comprehensive view of factors including changes in the operating environment,
future business plans, business results and financial condition in considering
dividend payments as it works to continue paying annual dividends that are as stable
as possible.
Hitachi Koki has paid dividends of ¥6 per share for the first, second, and third
quarters, and has set a dividend of ¥6 per share for the year end. As a result,
dividends for the full fiscal year were ¥24 per share.
Aiming to continue proactively returning profits to shareholders, for fiscal 2010 we
will implement more stable quarterly dividends, with dividends of ¥6 per share for
each of the first quarter, second quarter, third quarter and year end. Consequently,
dividends for the full fiscal year will total ¥24 per share.
Analysis of Financial Position
Cash Flows
• Net Cash Provided by Operating Activities
Net cash provided by operating activities was ¥10,986 million, compared to
net cash of ¥10,098 million used in operating activities in the previous fiscal
year, due to factors including income before income taxes and minority
interests of ¥6,040 million and a decrease in inventories.
• Net Cash Used in Investing Activities
Net cash used in investing activities was ¥1,327 million, compared to ¥1,916
million for the previous fiscal year, due to factors including capital expenditures.
• Net Cash Used in Financing Activities
Net cash used in financing activities was ¥1,239 million, compared to net
cash of ¥599 million provided by financing activities in the previous fiscal year
due to factors including cash dividends paid totaling ¥2,436 million.
As a result of the above, cash and cash equivalents as of March 31, 2010
increased ¥8,431 million from the previous fiscal year end to ¥25,120 million.
Cash Flows Summary
(Millions of yen)
2008 2009 2010
Net Cash Provided by
(Used in) Operating
Activities 7,092 (10,098) 10,986
Net Cash Used in
Investing Activities (6,612) (1,916) (1,327)
Net Cash Provided by
(Used in) Financing
Activities (1,750) 599 (1,239)
Cash and Cash
Equivalents at the
End of the Year 29,718 16,688 25,120
Hitachi Koki ANNUAL REPORT 2010
11

Net Sales (left scale)
Overseas Sales Ratio (right scale)
Net Sales/Overseas Sales Ratio
Annual Dividends per Share
(Billions of yen) (%)
200
80
69.1
Annual Dividends per Share
150
(Yen)
50
100
Total 40 Assets/ROA
50
(Billions of yen)
200 30
20
0
150
10
100
0
50
0
(Billions of yen)
200
150
100
Assets, Net Assets/ROE
Liabilities and Net Assets
20
• Assets 150 30
24.0
0
Total
0
assets at the end of fiscal 2009 were ¥148,982 million, a decrease of
2006 2007 2008 2009 148.9 2010
2006 2007 2008 2009112.1
2010
15
¥3,571 million from the end of the previous fiscal year. Current assets were
Net Sales (left scale)
100 20
Overseas Sales Ratio (right scale)
¥114,924 million of the total, a decrease of ¥1,501 million from a year earlier,
10
mainly due to a decrease of ¥8,309 million in inventories resulting from
2006 2007 2008 2009 2010
aggressive inventory reduction policies, despite an increase in deposits.
2006 2007 2008 2009 2010
Capital Expenditures
20
(%)
100 50
20 5
(Billions of yen)
5
2.2
0
0
4 2006 2007 2008 2009 2010
50 10
Total Assets (left scale)
3 ROA (right scale)
3.0
2.1
0 2
0
1
Total Assets (left scale)
ROA (right scale)
Total Assets/ROA
Net Assets/ROE
119.1
2.2
60
40
5
0
(%)
(Billions of yen) (%)
150 30
2006 2007 2008 2009 2010
Net Assets (left scale)
ROE (right scale)
(Yen)
50
40
30
20
(Billions 10 of yen) (%)
50 10
• Liabilities
3.0
Total liabilities at the fiscal year end were ¥36,841 million, a decrease of
0 0
¥3,436 2006 million 2007 from 2008 a year 2009 earlier. 2010
This decrease was mainly due to decreases in
Net (left scale)
Net notes Assets/ROE
and accounts payable, trade, resulting from production adjustments.
ROE (right scale)
(Billions of yen) (%)
• Net Assets
20
150 30
Total net assets at the fiscal year end were ¥112,141 million, a decrease of
148.9
¥134 million from a year earlier. 112.1
15
This decrease was mainly due to the change
100 20
in foreign currency translation adjustments resulting from the impact of the
10
strong yen, despite an increase in retained earnings.
112.1
50 10
Capital Expenditures
24.0
3.0
Capital expenditures in fiscal 2009 totaled ¥2,178 million as Hitachi Koki promoted
0 0
2006 2007 2008 2009 2010
rationalization of strictly selected manufacturing facilities including enhancements to
Net Assets (left scale)
manufacturing ROE management (right scale) systems where it deemed it necessary.
Main expenditures included rationalizing manufacturing facilities at the Sawa Plant,
as well as augmenting or renewing manufacturing facilities and strengthening
functions of the production management system at overseas plants.
0
2006 2007 2008 2009 2010
Capital Expenditures
(Billions of yen)
5
4
3
2
1
0
2.1
2006 2007 2008 2009 2010
Risk Information
Factors that could affect the operating results, share price and financial condition of
the Hitachi Koki Group are listed below. Forward-looking statements below reflect the
judgment of management as of March 31, 2010.
(1) Economic Conditions
The Hitachi Koki Group sells products in Japan, North America, Europe, Asia and
other regions. To counter regional economic fluctuations, the Group plans measures
including increasing manufacturing efficiency through cost-reduction activities and
establishing production bases in a number of regions. However, a reduction in demand
stemming from worse-than-expected regional economic slowdown could negatively
affect the Group’s businesses.
(2) Interest Rate Fluctuations
Although the Hitachi Koki Group is working to establish a business model that is
unaffected by interest rate fluctuations, greater-than-expected interest rate fluctuations
could affect the Group’s businesses because overseas sales make up a high
proportion of total consolidated net sales. Usually, a high yen exchange rate exerts a
12 Hitachi Koki ANNUAL REPORT 2010

Management’s Discussion and Analysis of Operations
negative effect on the Group’s businesses and a low yen has a positive effect. Further,
because the Group has manufacturing bases in China, revaluation of the yuan could
negatively affect the Group’s businesses.
(3) Price Competition and Raw Material Price Increases
The Hitachi Koki Group experiences market price competition. Although the Group
is taking measures to be successful in this competition such as continually introducing
strategic products based on its accurate perception of user needs and cost-reduction
activities, situations including a dramatic increase in price competition and higher-than
expected raw material price increases could negatively affect the Group’s businesses.
(4) Potential Risk from International Activities
The Hitachi Koki Group conducts manufacturing and sales activities in North
America, Europe, Asia and other regions. As a result, factors in such regions including
regulatory, taxation and economic changes, political changes including the occurrence
of terrorism and conflicts, and social changes including labor shortages and the spread
of infectious diseases could negatively affect the Group’s businesses. Further,
although the Group is working to augment its manufacturing capacity in China, factors
including changes in the Chinese government or legal environment, strikes, power
shortages and changes in economic conditions could create unexpected problems for
manufacturing facility management and other businesses. These factors could thus
negatively affect the Group’s businesses.
(5) Limits on Intellectual Property Rights Protection
In order to differentiate its products from those of its competitors, the Hitachi
Koki Group has created several measures to protect the various technologies and
know-how that it has accumulated. However, it may not be possible to prevent
other companies from using Group technologies to produce similar products, and
claims may surface that the Group unknowingly infringed on another company’s
intellectual property rights. These and other factors could negatively affect the
Group’s businesses.
(6) Product Defects
The Hitachi Koki Group has taken sufficient measures in this area, including
product designs that consider safety, thorough quality management and product
liability insurance subscription. However, situations such as being responsible for
an unexpectedly high amount of compensation and large-scale product liability
litigation could exert a substantial negative effect on the Group’s public perception
and require substantial costs to remedy, and thus could negatively affect the
Group’s businesses.
(7) Changes in Shareholder Composition, Business Alliances, etc.
Factors including changes in the Hitachi Koki Group’s shareholder composition,
and changes in or dissolution of business alliances, could negatively affect the
Group’s businesses.
Hitachi Koki ANNUAL REPORT 2010
13

Consolidated Balance Sheets
Hitachi Koki Co., Ltd. and consolidated subsidiaries
March 31, 2010 and 2009
Thousands of
Millions of yen U.S. dollars (Note 1)
ASSETS 2010 2009 2010
Current assets:
Cash on hand and in banks (Note 2) .............................................
Deposits (Note 2) ..........................................................................
Notes and accounts receivable, trade (Note 8) .............................
Inventories (Notes 4 and 8) ...........................................................
Deferred tax assets (Note 9) .........................................................
Others ...........................................................................................
Allowance for doubtful accounts ..................................................
Total current assets ...................................................................
¥ 9,922
15,197
41,093
43,492
3,737
2,118
(638)
¥ 12,620
4,068
38,837
51,801
5,365
4,834
(1,102)
$ 106,642
163,338
441,670
467,455
40,166
22,764
(6,857)
114,924
116,425
1,235,211
Property, plant and equipment:
Land ..............................................................................................
3,420
3,427
36,758
Buildings and structures ...............................................................
32,023
32,482
344,185
Machinery and equipment ............................................................
39,914
40,504
428,998
Others ...........................................................................................
10,645
10,631
114,413
Less accumulated depreciation ....................................................
(63,798)
(63,009)
(685,705)
Net property, plant and equipment ............................................
22,206
24,035
238,672
Intangible assets:
Goodwill ........................................................................................
4,989
5,278
53,622
Others ...........................................................................................
1,825
2,118
19,615
Total intangible assets ...............................................................
6,814
7,396
73,237
Investments and other assets:
Investment securities (Note 3) .....................................................
1,216
971
13,070
Long-term loans to employees .....................................................
—
445
—
Deferred tax assets (Note 9) .........................................................
1,512
1,032
16,251
Others ...........................................................................................
2,308
2,248
24,807
Allowance for doubtful accounts ..................................................
—
(3)
—
Total investments and other assets ...........................................
5,037
4,695
54,127
Total assets ......................................................................................
¥148,982
¥152,553
$1,601,268
See accompanying notes.
14 Hitachi Koki ANNUAL REPORT 2010

Thousands of
Millions of yen U.S. dollars (Note 1)
LIABILITIES AND NET ASSETS 2010 2009 2010
LIABILITIES
Current liabilities:
Bank loans (Note 8) .......................................................................
Notes and accounts payable, trade ...............................................
Accrued expenses ........................................................................
Income taxes payable (Note 9) .....................................................
Accrued bonuses for directors and corporate auditors .................
Others ...........................................................................................
Total current liabilities ................................................................
¥ 14,448
8,267
6,953
591
90
2,599
32,951
¥ 14,194
11,374
6,792
696
83
3,438
36,579
$ 155,288
88,854
74,731
6,352
967
27,934
354,160
Long-term liabilities:
Employees’ severance and retirement benefits (Note 11) ...........
3,009
3,101
32,341
Accrued retirement benefits for directors and corporate auditors ....
487
401
5,234
Others ...........................................................................................
392
194
4,213
Total long-term liabilities ............................................................
3,889
3,697
41,799
Total liabilities .........................................................................
36,841
40,277
395,969
NET ASSETS
Shareholders’ equity (Notes 12 and 13):
Common stock
Authorized - 270,000,000 shares ..............................................
Issued - 123,072,776 shares ..............................................
17,813
17,813
191,455
Capital surplus ..............................................................................
21,557
21,555
231,696
Retained earnings .........................................................................
94,976
94,116
1,020,808
Treasury stock, at cost ..................................................................
(13,635)
(13,642)
(146,550)
Valuation and translation adjustments:
Net unrealized holding gains (losses) on securities ......................
(81)
(21)
(871)
Deferred gains or losses on hedges (Note 5) ...............................
—
(9)
—
Foreign currency translation adjustments .....................................
(9,418)
(8,508)
(101,225)
Minority interests .............................................................................
930
972
9,996
Total net assets .........................................................................
112,141
112,275
1,205,299
Total liabilities and net assets ...........................................................
¥148,982
¥152,553
$1,601,268
Hitachi Koki ANNUAL REPORT 2010
15

Consolidated Statements of Income
Hitachi Koki Co., Ltd. and consolidated subsidiaries
Years ended March 31, 2010, 2009 and 2008
Thousands of
Millions of yen U.S. dollars (Note 1)
2010 2009 2008 2010
Net sales ......................................................................
¥119,166
¥142,013
¥174,756
$1,280,804
Cost of sales ................................................................
74,775
83,978
101,464
803,687
Gross profit ..................................................................
44,390
58,035
73,292
477,107
Selling, general and administrative expenses ..............
39,205
45,814
50,971
421,378
Operating income .........................................................
5,184
12,220
22,320
55,718
Other income (expenses):
Interest income .........................................................
191
445
404
2,053
Dividend income .......................................................
17
34
36
183
Interest expense .......................................................
(364)
(768)
(635)
(3,912)
Equity in earnings (losses) of affiliate .......................
(24)
(21)
(14)
(258)
Foreign currency exchange gains (losses), net .........
(117)
(2,205)
88
(1,258)
Loss on disposal of property, plant and equipment ....
(68)
(61)
(92)
(731)
Gain on sale of property, plant and equipment .........
656
—
—
7,051
Gain on sale of land ..................................................
—
964
802
—
Gain on sale of available-for-sale securities ...............
214
245
—
2,300
Income from rental of real estate .............................
570
522
449
6,126
Expenses for rental of real estate ............................
(278)
(292)
(274)
(2,988)
Special retirement benefits .......................................
—
(2,032)
(15)
—
Gain on reversal of allowance for doubtful accounts ....
—
20
67
—
Others, net ................................................................
59
120
(295)
634
Income before income taxes and minority interests ....
6,040
9,191
22,841
64,918
Income taxes:
- Current ....................................................................
1,459
3,787
7,893
15,681
- Deferred ..................................................................
1,181
238
(819)
12,693
Income before minority interests .................................
3,400
5,166
15,767
36,543
Minority interests .........................................................
(66)
(129)
(205)
(709)
Net income ...................................................................
¥ 3,333
¥ 5,034
¥ 15,561
$ 35,823
Net income per share: Yen U.S. dollars (Note 1)
- Primary ...................................................................
¥32.88
¥49.66
¥150.90
$0.35
- Diluted ....................................................................
¥32.88
¥49.66
¥150.74
$0.35
Cash dividends applicable to the year ..........................
¥24.00
¥41.00
¥ 45.00
$0.26
See accompanying notes.
16 Hitachi Koki ANNUAL REPORT 2010

Consolidated Statements of
Changes in Net Assets
Hitachi Koki Co., Ltd. and consolidated subsidiaries
Years ended March 31, 2010, 2009 and 2008
Thousands of
Millions of yen U.S. dollars (Note 1)
2010 2009 2008 2010
Common stock:
Balance at beginning and end of year .......................
¥ 17,813
¥ 17,813
¥ 17,813
$ 191,455
Capital surplus:
Balance at beginning of year .....................................
Disposal of treasury stock ........................................
Balance at end of year ..............................................
21,555
1
21,557
21,533
22
21,555
21,470
63
21,533
231,675
11
231,696
Retained earnings:
Balance at beginning of year......................................
Adjustment due to adoption of a new
accounting standard, PITF No. 18 ...........................
Cash dividends paid ..................................................
Net income ...............................................................
Effect of application of U.S. GAAP
in a foreign subsidiary .............................................
Effect of changes in accounting policies applied
to a foreign subsidiary ............................................
Balance at end of year...............................................
94,116
—
(2,433)
3,333
(40)
—
94,976
94,255
(89)
(5,083)
5,034
—
—
94,116
83,310
—
(4,647)
15,561
—
30
94,255
1,011,565
—
(26,150)
35,823
(430)
—
1,020,808
Treasury stock:
Balance at beginning of year .....................................
Acquisition of treasury stock ....................................
Disposal of treasury stock ........................................
Balance at end of year ..............................................
(13,642)
(2)
10
(13,635)
(12,340)
(1,326)
23
(13,642)
(10,847)
(1,558)
66
(12,340)
(146,625)
(21)
107
(146,550)
Net unrealized holding gains (losses) on securities:
Balance at beginning of year .....................................
Net change during the year .......................................
Balance at end of year ..............................................
(21)
(59)
(81)
608
(630)
(21)
1,280
(671)
608
(226)
(634)
(871)
Deferred gains or losses on hedges:
Balance at beginning of year .....................................
Net change during the year .......................................
Balance at end of year ..............................................
(9)
9
—
0
(9)
(9)
0
(0)
0
(97)
97
—
Foreign currency translation adjustments:
Balance at beginning of year .....................................
Net change during the year .......................................
Balance at end of year ..............................................
(8,508)
(910)
(9,418)
(1,086)
(7,421)
(8,508)
1,976
(3,062)
(1,086)
(91,445)
(9,781)
(101,225)
Minority interests:
Balance at beginning of year .....................................
Net change during the year .......................................
Balance at end of year ..............................................
972
(42)
930
1,102
(130)
972
949
153
1,102
10,447
(451)
9,996
Total net assets.............................................................
¥112,141
¥112,275
¥121,887
$1,205,299
See accompanying notes.
Hitachi Koki ANNUAL REPORT 2010
17

Consolidated Statements of Cash Flows
Hitachi Koki Co., Ltd. and consolidated subsidiaries
Years ended March 31, 2010, 2009 and 2008
Thousands of
Millions of yen U.S. dollars (Note 1)
2010 2009 2008 2010
Cash flows from operating activities:
Income before income taxes and minority interests ....
Depreciation ..............................................................
Increase (Decrease) in employees’
severance and retirement benefits .........................
Interest and dividend income ...................................
Interest expense .......................................................
Gain on sale of property, plant and equipment .........
Special retirement benefits .......................................
Decrease (Increase) in notes and
accounts receivable, trade ......................................
Decrease (Increase) in inventories ............................
Increase (Decrease) in notes and
accounts payable, trade ..........................................
Increase (Decrease) in accounts payable others .......
Increase (Decrease) in accrued expenses ................
Others, net ................................................................
¥ 6,040
3,919
201
(208)
364
(657)
—
(3,913)
7,552
(2,678)
(224)
428
707
11,530
¥ 9,191
4,632
(1,216)
(479)
768
(947)
2,032
3,433
(16,324)
2,361
(107)
(125)
(844)
2,376
¥22,841
4,774
(561)
(441)
635
—
—
(9,453)
(6,851)
2,698
801
553
(723)
14,272
$ 64,918
42,122
2,160
(2,236)
3,912
(7,061)
—
(42,057)
81,169
(28,783)
(2,408)
4,600
7,599
123,925
Interest and dividend received ..................................
Interest paid ..............................................................
Special retirement benefits paid ...............................
Income taxes refunded .............................................
Income taxes paid .....................................................
Net cash (used in) provided by operating activities .....
208
(367)
(391)
1,987
(1,981)
10,986
479
(779)
(1,645)
—
(10,529)
(10,098)
440
(621)
—
—
(6,999)
7,092
2,236
(3,945)
(4,202)
21,356
(21,292)
118,078
Cash flows from investing activities:
Purchase of investment securities ............................
Proceeds from sale of investment securities ...........
Payment for acquisition of shares of a company,
which became a new consolidated subsidiary (Note 2)...
Purchase of property, plant and equipment ..............
Proceeds from sale of property, plant and equipment ......
Purchase of intangible assets ...................................
Purchase of business ................................................
Others, net ................................................................
Net cash used in investing activities .....................
(608)
446
—
(1,789)
787
(291)
—
127
(1,327)
(122)
732
—
(2,670)
1,021
(836)
(172)
132
(1,916)
(379)
—
(225)
(4,413)
1,118
(778)
(2,038)
104
(6,612)
(6,535)
4,794
—
(19,228)
8,459
(3,128)
—
1,365
(14,263)
Cash flows from financing activities:
Net increase (decrease) in short-term bank loans ....
Payment for acquisition of treasury stock .................
Proceeds from sale of treasury stock .......................
Cash dividends paid ..................................................
Others, net ................................................................
Net cash provided by (used in) financing activities ....
1,072
(2)
11
(2,436)
114
(1,239)
7,017
(1,326)
45
(5,073)
(64)
599
4,354
(1,558)
129
(4,623)
(53)
(1,750)
11,522
(21)
118
(26,182)
1,225
(13,317)
Effect of changes in exchange rate on cash and cash equivalents ...
Net increase (decrease) in cash and cash equivalents .....
Cash and cash equivalents at beginning of year ..........
Cash and cash equivalents at end of year (Note 2) ......
12
8,431
16,688
¥25,120
(1,614)
(13,029)
29,718
¥ 16,688
13
(1,257)
30,975
¥29,718
129
90,617
179,364
$269,991
See accompanying notes.
18 Hitachi Koki ANNUAL REPORT 2010

Notes to Consolidated Financial Statements
Hitachi Koki Co., Ltd. and consolidated subsidiaries
Years ended March 31, 2010, 2009 and 2008
1. BASIS OF PRESENTATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of presenting consolidated financial statements
The accompanying consolidated financial statements have been
restructured and translated into English (with some expanded descriptions)
from the consolidated financial statements of Hitachi Koki Co., Ltd. (the
“Company”) prepared in accordance with accounting principles generally
accepted in Japan and filed with the appropriate Local Finance Bureau of
the Ministry of Finance as required by the Financial Instruments and
Exchange Law (the Securities and Exchange Law for 2007). Certain
supplementary information included in the statutory Japanese language
consolidated financial statements is not presented in the accompanying
consolidated financial statements. Accounting principles generally accepted
in Japan are different in certain respects as to application and disclosure
requirements from International Financial Reporting Standards.
The translations of the Japanese yen amounts into U.S. dollars are
included solely for the convenience of readers outside Japan, using the
prevailing exchange rate at March 31, 2010, which was ¥93.04 to U.S. $1.
The convenience translations should not be construed as representations
that the Japanese yen amounts have been, could have been, or could in the
future be, converted into U.S. dollars at this or any other rate of exchange.
(b) Principles of consolidation
The consolidated financial statements include the accounts of the
Company and its significant subsidiaries (50 subsidiaries in 2010, 48
subsidiaries in 2009 and 45 subsidiaries in 2008). All significant intercompany
accounts, transactions and unrealized profits are eliminated in
consolidation. Goodwill is amortized using the straight-line method over a
reasonable period not exceeding 20 years.
Investments in an affiliated company (20% to 50% owned) and an
unconsolidated overseas subsidiary are stated at the underlying equity
value, and the appropriate portion of the earnings of such companies is
included in consolidated income.
(Change in accounting policies)
Prior to the year ended March 31, 2009, the Company consolidated the
financial statements of overseas subsidiaries prepared in conformity with
generally accepted accounting principles prevailing in the respective
countries of domicile. Effective April 1, 2008, the Company adopted Practical
Issues Task Force No. 18 “Practical Solution on Unification of Accounting
Policies Applied to Foreign Subsidiaries for Consolidated Financial
Statements” (“PITF No. 18”) issued by the Accounting Standards Board of
Japan on May 17, 2006.
The effects on net income for 2009 of adopting PITF No. 18 were
immaterial.
However, sales and selling, general and administrative expenses each
decreased by ¥1,110 million compared with what would have been reported
under the previous accounting policies.
(c) Foreign currency translation
Receivables and payables denominated in foreign currencies are translated
into Japanese yen at the exchange rates at the balance sheet date.
Resulting exchange gains or losses are credited or charged to income as
incurred.
The assets and liabilities of foreign currency financial statements are
translated into Japanese yen at current rates of exchange at the balance
sheet date. Common stock, capital surplus and retained earnings are
translated at the historical exchange rates. Income and expenses are
translated at average rates of exchange in effect during the year. Translation
adjustments are debited or credited to the foreign currency translation
adjustments account and minority interests, which are reported in net assets
in the accompanying consolidated balance sheets.
(d) Cash and cash equivalents
For the purpose of the consolidated statements of cash flows, the
Company and its consolidated subsidiaries classify cash on hand, readily
available bank deposits and short-term highly liquid investments with low
risk of value fluctuation with maturities not exceeding three months at the
time of purchase as cash and cash equivalents.
(e) Marketable securities and investment securities
Under the Japanese accounting standards, companies are required to
examine the intent of holding each security and classify those securities
as (a) securities held for trading purposes (hereafter, “trading securities”),
(b) debt securities intended to be held to maturity (hereafter, “held-tomaturity
debt securities”), (c) equity securities issued by nonconsolidated
subsidiaries and affiliated companies, and (d) for all other securities that
are not classified in any of the above categories (hereafter, “available-forsale
securities”).
Equity securities issued by subsidiaries and affiliated companies which
are neither consolidated nor accounted for by the equity method are stated
at moving-average cost. Available-for-sale securities with fair market value
are stated at fair market value. Unrealized gains and unrealized losses on
these securities are reported, net of applicable income taxes, as a separate
component of the net assets. Realized gain on sale of such securities is
computed using the moving-average cost. Securities with no fair market
values are stated principally at the moving-average cost.
The Company and its consolidated subsidiaries had no trading securities
or held-to-maturity debt securities.
If the market value of equity securities issued by subsidiaries and
affiliated companies neither consolidated nor accounted for using the
equity method, and available-for-sale securities, declines significantly,
such securities are stated at fair market value and the difference between
fair market value and the carrying amount is recognized as a loss in the
period of the decline.
Hitachi Koki ANNUAL REPORT 2010
19

(f) Derivative transactions and hedge accounting
The Company and its consolidated subsidiaries utilize forward foreign
exchange contracts and interest rate and currency swap agreements as
derivative transactions, in order to hedge foreign currency risks and interest
rate risks arising from normal business transactions.
Derivative instruments are stated at fair value. Changes in the fair
values are recognized as gains or losses unless derivative transactions are
used for hedging purposes.
If foreign currency derivative transactions are used as hedges and meet
certain hedging criteria, the Company and its consolidated subsidiaries defer
recognition of gains or losses resulting from changes in fair value of
derivative transactions until the related losses or gains on the hedged items
are recognized.
Evaluation of hedge effectiveness is not considered necessary as the
terms and notional amounts of these hedging instruments are the same as
those of the related hedged transactions, assets and liabilities, and
therefore they are assumed to be highly effective in offsetting movements in
the exchange rates at their inception as well as during their term.
(g) Inventories
Merchandise, finished goods and raw materials of the Company and its
consolidated subsidiaries are mainly stated at cost determined using
primarily the moving-average method. Work in process is mainly determined
by the specific identification method. Balance sheet amounts are written
down to net selling value if profitability of inventories decreased.
(Change in accounting policies)
Effective April 1, 2008, the Company and its consolidated domestic
subsidiaries adopted Statement No. 9, “Accounting Standard for
Measurement of Inventories.”
The adoption of the new accounting standard had no material effects on
the consolidated financial statements for the year ended March 31, 2009.
(h) Retirement benefits
The Company, its consolidated domestic subsidiaries and certain
consolidated overseas subsidiaries provide two post-employment benefit
plans, an unfunded lump-sum payment plan and a funded pension plan,
under which all eligible employees are entitled to benefits based on the
level of wages and salaries at the time of retirement or termination, length
of service and certain other factors.
The Company, its consolidated domestic subsidiaries and certain
consolidated overseas subsidiaries provided allowance for employees’
severance and retirement benefits at the balance sheet dates based on the
estimated amounts of projected benefit obligation and the fair value of the
plan assets at those dates.
Actuarial gains/losses are amortized on a straight-line basis over the
following 15 years. Past service costs are amortized on a straight-line basis
over 15 years.
Accrued retirement benefits for directors and corporate auditors of the
Company are provided at the amounts which would be required if all
directors and corporate auditors retired at the balance sheet date. Payment
of such benefits is subject to the approval at the shareholders’ meeting.
Effective April 1, 2009, the Company adopted Statement No. 19, “Partial
Amendments to Accounting Standard for Retirement Benefits (Part 3)”
issued by the Accounting Standards Board of Japan on July 31, 2008. As the
Company amortizes actuarial gains/losses from the succeeding period, there
was no effect of the adoption on net income. The remaining difference of
projected benefit obligation incurred by the adoption of the statement
amounted to ¥661 million ($7,104 thousand) as of March 31, 2010.
(i) Property, plant and equipment
Property, plant and equipment are stated at cost. Depreciation is
computed primarily using the declining-balance method at rates based on
the estimated useful lives, except that buildings are depreciated primarily
based on the straight-line method.
The significant useful lives are summarized as follows:
Buildings and structures ............ 3-50 years
Machinery and equipment ......... 3-12 years
(Change of useful lives of machinery and equipment)
Based on reinvestigation of usage of assets at the time of revision of the
Japanese Income Tax Law, the Company and its consolidated domestic
subsidiaries changed the useful lives of machinery and equipment mainly
from 10 to 12 years, effective from the year ended March 31, 2009. The
effect of the change was to increase operating income and income before
income taxes and minority interests by ¥158 million.
(Change in accounting policies)
Effective April 1, 2007 the Company and its consolidated domestic
subsidiaries adopted the revised depreciation method based on the
revised corporation tax law for fixed assets which were acquired on or
after April 1, 2007.
As a result of the change, operating income and income before income
taxes and minority interests decreased by ¥132 million for the year ended
March 31, 2008.
(Additional information)
Effective April 1, 2007, the Company and its consolidated domestic
subsidiaries changed their method of depreciation based on an
amendment to the Corporation Tax Law of Japan for tangible fixed assets
acquired on or prior to March 31, 2007. When such tangible fixed assets
have been depreciated to the equivalent of 5% of their acquisition cost,
the difference between the equivalent of 5% of acquisition cost and an
appropriate nominal value is amortized over the following five years.
As a result of the change, operating income decreased by ¥391 million,
20 Hitachi Koki ANNUAL REPORT 2010

Notes to Consolidated Financial Statements
and income before income taxes and minority interests decreased by ¥401
million for the year ended March 31, 2008.
(j) Intangible assets
Intangible assets are amortized by the straight-line method.
(k) Leased assets
Finance leases are capitalized and depreciated over the useful lives of
the assets or lease terms. However, as discussed below, the Company and
its consolidated domestic subsidiaries account for finance leases that
commenced prior to April 1, 2008 which do not transfer the ownership of the
leased property to the lessee as operating leases.
(Change in accounting policies)
Prior to the year ended March 31, 2009 companies were allowed to
account for finance leases which do not transfer ownership of the leased
property to the lessee as operating leases with disclosure of certain “as if
capitalized” information in a note to the consolidated financial statements.
Effective April 1, 2008, the Company and its consolidated domestic
subsidiaries adopted Statement No. 13, “Accounting Standard for Lease
Transactions” and Guidance No. 16, “Guidance on Accounting Standard for
Lease Transactions” issued by the Accounting Standards Board of Japan on
March 31, 2007. The new accounting standards require that all finance
lease transactions should be capitalized, except for certain immaterial or
short-term leases, which are accounted for as operating leases. As
permitted, finance leases which commenced prior to April 1, 2008 and have
been accounted for as operating leases, continue to be accounted for as
operating leases with disclosure of “as if capitalized” information.
The effects of adopting the new standards on the consolidated financial
statements for 2009 were immaterial.
(l) Allowance for doubtful accounts
Allowance for doubtful accounts is provided in an amount sufficient to
cover possible losses on the collection of receivables. The amount of the
allowance is mainly determined on the basis of past experience of bad debts
and an estimate of the collectibility of individual receivables based on the
financial position of the debtors.
(m) Accrued bonuses for directors and corporate auditors
Accrued bonuses for directors and corporate auditors are provided for
the expected payments at the amount attributable to the fiscal year.
(o) Income taxes
Provision for income taxes is computed based on the pretax income
included in the consolidated statements of income. The asset and liability
approach is used to recognize deferred tax assets and liabilities for the
expected future tax consequences of temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes
and the amounts used for income tax purposes.
(p) Appropriation of retained earnings
Payments of dividends are accounted for as appropriation of retained
earnings or other capital surplus, as applicable, in the period when approved
at the shareholders’ meeting or at the Board of Directors meeting.
(q) Earnings per share
Net income per share of common stock is computed based upon the
weighted-average number of shares outstanding during each year. For
diluted net income per share, both net income and shares outstanding were
adjusted for assumed issuance of common stock by the exercise of stock
purchase rights.
2. CASH AND CASH EQUIVALENTS
Cash and cash equivalents at March 31, 2010, 2009 and 2008 for the
consolidated statements of cash flows consisted of the following:
Millions of yen
Thousands of
U.S. dollars
2010 2009 2008 2010
Cash on hand and in banks......... ¥ 9,922 ¥12,620 ¥10,105 $106,642
Deposits...................................... 15,197 4,068 19,612 163,338
Cash and cash equivalents......... ¥25,120 ¥16,688 ¥29,718 $269,991
Acquisition of Subsidiaries:
The Company established Nikko Tanaka Engineering Co., Ltd., a
consolidated subsidiary, in May 2007, and it acquired the engine tools
business from Tanaka Kogyo Co., Ltd. Increases in assets and liabilities due
to the acquisition and cash paid for the acquisition are outlined as follows:
Millions of yen
Current assets.................................................................. ¥ 674
Noncurrent assets........................................................... 808
Goodwill........................................................................... 726
Current liabilities............................................................. (170)
Cash paid for acquisition of the engine tools business
from Tanaka Kogyo Co., Ltd........................................... ¥2,038
(n) Research and development costs
Research and development costs included in cost of sales, and selling,
general and administrative expenses were ¥3,239 million ($34,813
thousand), ¥3,425 million and ¥3,574 million for the years ended March 31,
2010, 2009 and 2008, respectively.
Hitachi Koki ANNUAL REPORT 2010
21

3. FAIR VALUE INFORMATION FOR SECURITIES
At March 31, 2010, acquisition cost and fair value of available-for-sale
securities with fair value were as follows:
Available-for-sale securities
Millions of yen
Acquisition Fair
cost value Difference
Securities with fair value
exceeding acquisition costs:
Equity securities ......................................... ¥225 ¥241 ¥ 16
Total............................................................ ¥225 ¥241 ¥ 16
Other securities:
Equity securities.......................................... ¥939 ¥796 ¥(143)
Total............................................................ ¥939 ¥796 ¥(143)
Thousands of U.S. dollars
Acquisition Fair
cost value Difference
Securities with fair value
exceeding acquisition costs:
Equity securities ......................................... $ 2,418 $2,590 $ 172
Total............................................................ $ 2,418 $2,590 $ 172
Other securities:
Equity securities.......................................... $10,092 $8,555 $(1,537)
Total............................................................ $10,092 $8,555 $(1,537)
Total sales amounts of available-for-sale securities sold in the year
ended March 31, 2010 were ¥434 million ($4,665 thousand) and the related
gains were ¥214 million ($2,300 thousand).
At March 31, 2009, acquisition cost and fair value of available-for-sale
securities with fair value were as follows:
Available-for-sale securities
Millions of yen
Acquisition Fair
cost value Difference
Securities with fair value
exceeding acquisition costs:
Equity securities ......................................... ¥317 ¥450 ¥ 133
Total............................................................ ¥317 ¥450 ¥ 133
Other securities:
Equity securities.......................................... ¥470 ¥310 ¥(160)
Total............................................................ ¥470 ¥310 ¥(160)
4. INVENTORIES
Inventories at March 31, 2010 and 2009 consisted of the following:
Thousands of
Millions of yen U.S. dollars
2010 2009 2010
Merchandise and finished goods................. ¥38,722 ¥45,249 $416,187
Work in process............................................ 2,291 2,692 24,624
Raw materials............................................... 2,478 3,859 26,634
Total........................................................... ¥43,492 ¥51,801 $467,455
5. DERIVATIVE TRANSACTIONS
(a) Status of derivative transactions
The Company and certain consolidated subsidiaries utilize forward
foreign exchange contracts and interest rate and currency swap agreements
as derivative transactions, in order to hedge foreign currency risks and
interest rate risks arising from normal business transactions.
The derivative transactions are made solely with highly rated financial
institutions. The basic policy for derivative transactions is determined by the
director in charge. Derivative contracts are executed and managed by the
Accounting Department in accordance with the internal rules on
authorization, maximum transaction amounts allowed, etc. Details of the
transactions are reported to the director on a monthly basis.
The following summarizes hedging derivative financial instruments used
by the Company and certain consolidated subsidiaries and items hedged:
Hedging instruments:
Forward foreign exchange contracts
Interest rate and currency
swap agreements
Hedged items:
Foreign currency trade accounts
receivable and trade accounts payable,
and future transactions
denominated in
foreign currencies
Foreign currency loans
(b) Derivative transactions not accounted
for by hedge accounting
The aggregate amounts contracted to be paid or received and the fair
value of derivative transactions at March 31, 2010 and 2009 were as follows:
Currency-related derivatives:
Millions of yen
2010
Contracted amount
Due after
Unrealized
Total one year Fair value gains (losses)
Forward contracts:
To sell:
U.S. dollars............................. ¥ 1,850 — ¥ (42) ¥ (42)
Euro........................................ 6,710 — 210 210
U.K. pound sterling................ 443 — 10 10
Australian dollars................... 622 — (18) (18)
Singapore dollars................... 5 — (0) (0)
Czech koruna.......................... 73 — (1) (1)
Romanian ron......................... 9 — (0) (0)
Polish zloty............................. 119 — (2) (2)
To buy:
U.S. dollars............................. 26 — 0 0
Euro........................................ 198 — (0) (0)
Czech koruna.......................... 6 — 0 0
Norwegian krone................... 3 — 0 0
Total..................................... ¥10,068 — ¥155 ¥155
22 Hitachi Koki ANNUAL REPORT 2010

Notes to Consolidated Financial Statements
Contracted amount
Millions of yen
2009
Due after
Unrealized
Total one year Fair value gains (losses)
Forward contracts:
To sell:
U.S. dollars............................. ¥ 1,733 — ¥ 1,815 ¥ (82)
Euro........................................ 10,273 — 10,398 (124)
U.K. pound sterling................ 259 — 263 (3)
Australian dollars................... 265 — 281 (16)
Singapore dollars................... 79 — 82 (3)
Czech koruna.......................... 175 — 164 11
Hungarian forint..................... 115 — 115 (0)
Polish zloty............................. 390 — 390 (0)
To buy:
U.S. dollars............................. 20 — 20 (0)
Euro........................................ 214 — 212 1
Japanese yen......................... 254 — 236 18
Total..................................... ¥13,783 — ¥13,981 ¥(197)
Thousands of U.S. dollars
2010
Contracted amount
Due after
Unrealized
Total one year Fair value gains (losses)
Forward contracts:
To sell:
U.S. dollars............................. $ 19,884 — $ (451) $ (451)
Euro........................................ 72,120 — 2,257 2,257
U.K. pound sterling................ 4,761 — 107 107
Australian dollars................... 6,685 — (193) (193)
Singapore dollars................... 54 — 0 (0)
Czech koruna.......................... 785 — (11) (11)
Romanian ron......................... 97 — 0 (0)
Polish zloty............................. 1,279 — (21) (21)
To buy:
U.S. dollars............................. 279 — 0 0
Euro........................................ 2,128 — (0) (0)
Czech koruna.......................... 64 — 0 0
Norwegian krone................... 32 — 0 0
Total..................................... $108,212 — $1,675 $1,675
Contracted amount
Millions of yen
2009
Due after
Unrealized
Total one year Fair value gains (losses)
Interest rate and currency
swap agreements:
Pay U.S. dollars, receive yen
Receive variable, pay variable.... ¥ 97 — ¥ (0) ¥ (0)
Pay Euro, receive yen
Receive variable, pay variable.... 4,811 — 81 81
Pay Can. dollars, receive yen
Receive variable, pay variable.... 1,153 — 22 22
Pay Polish zloty, receive yen
Receive variable, pay variable..... 592 — 13 13
Total....................................... ¥6,654 — ¥116 ¥116
Thousands of U.S. dollars
2010
Contracted amount
Due after
Unrealized
Total one year Fair value gains (losses)
Interest rate and currency
swap agreements:
Pay U.S. dollars, receive yen
Receive variable, pay variable.... $ 2,977 — $ (11) $ (11)
Pay Euro, receive yen
Receive variable, pay variable.... 66,853 — (871) (871)
Pay Polish zloty, receive yen
Receive variable, pay variable.... 8,824 — (215) (215)
Total....................................... $78,665 — $(1,096) $(1,096)
(c) Derivative transactions accounted
for by hedge accounting
Currency transactions: Not applicable.
Interest-related transactions: Not applicable.
Interest related derivatives:
Millions of yen
2010
Contracted amount
Due after
Unrealized
Total one year Fair value gains (losses)
Interest rate and currency
swap agreements:
Pay U.S. dollars, receive yen
Receive variable, pay variable.... ¥ 277 — ¥ (1) ¥ (1)
Pay Euro, receive yen
Receive variable, pay variable.... 6,220 — (81) (81)
Pay Polish zloty, receive yen
Receive variable, pay variable.... 821 — (20) (20)
Total....................................... ¥7,319 — ¥(102) ¥(102)
Hitachi Koki ANNUAL REPORT 2010
23

6. LEASE INFORMATION
As discussed in Note 1 (k), finance leases commenced prior to April 1,
2008 which do not transfer ownership of leased assets to lessees are
accounted for as operating leases.
Assumed amounts of acquisition cost and accumulated depreciation at
March 31, 2010 and 2009 are as follows:
(a) A summary of assumed amounts of acquisition cost, accumulated
depreciation and net book value at March 31, 2010 and 2009 was as follows:
Thousands of
Millions of yen U.S. dollars
2010 2009 2010
Machinery and equipment:
Acquisition cost............................................. ¥58 ¥ 142 $623
Accumulated depreciation............................. 51 (114) 548
Net book value............................................ ¥ 7 ¥ 27 $ 75
(b) Future minimum lease payments at March 31, 2010 and 2009
were as follows:
Millions of yen
Thousands of
U.S. dollars
2010 2009 2010
Due within one year...................................... ¥3 ¥23 $32
Due after one year......................................... 2 6 21
Total............................................................ ¥6 ¥29 $64
(c) Lease payments, assumed depreciation charges and assumed interest
charges for the years ended March 31, 2010, 2009 and 2008 were as follows:
Millions of yen
Thousands of
U.S. dollars
2010 2009 2008 2010
Lease payments.......................... ¥22 ¥47 ¥96 $236
Assumed depreciation charges.... 20 45 92 215
Assumed interest charges.......... 0 1 2 0
(d) Assumed depreciation charges are computed using the straight-line method
over the lease terms assuming no residual value.
(e) Assumed interest charges are computed using the effective-interest method.
7. FINANCIAL INSTRUMENTS
(a) Outline of financial instruments
(1) Management policies
The Company and its consolidated subsidiaries invest mainly in shortterm
instruments such as deposits in banks and raise funds by borrowing
from outside financial institutions. The Company and certain consolidated
subsidiaries enter into derivatives transactions only for the purpose of
mitigating risk as described below and do not engage in such
transactions for speculative purposes.
customers and counterparties. The Company and its consolidated
subsidiaries’ credit risk monitoring activities include review of overdue
and balance amounts of each customer as well as review of
creditworthiness of major customers on a regular basis. Trade
receivables in foreign currencies generated by worldwide operations are
exposed to foreign exchange fluctuation risk. This risk is hedged by using
forward exchange contracts for, in principle, the net positions after
offsetting trade receivables denominated in foreign currency with trade
payables denominated in foreign currencies.
Investment securities mainly consist of marketable securities of the
companies with which the Company has business relationships. As such
marketable securities are exposed to market volatility risk, the Company
keeps track of their fair value on a quarterly basis.
Trade payables are mostly due within one year. Trade payables
denominated in foreign currencies are exposed to foreign exchange
fluctuation risk, which are principally hedged by using forward
exchange contracts.
Short-term bank loans are mainly for operating capital.
Forward exchange contracts and interest currency swaps are used to
minimize foreign exchange fluctuation risk associated with receivables
and payables in foreign currencies, and to minimize interest rate risk
from the possibility of changes in interest rates associated with financing
debts. Foreign exchange fluctuation risk and interest rate risk are
inherent in forward exchange contracts and interest currency swaps,
respectively. To mitigate such risks, the Accounting Division executes and
controls derivative transactions in conformity with the internal rules
specifying authorization and the maximum limit of transactions. The
results of transactions are reported monthly to the director in charge.
Trade payables and short-term bank loans are exposed to liquidity
risk. The Company and its consolidated subsidiaries develop and update
their cash flow forecasts on a monthly basis to manage their liquidity
risk.
(b) Fair value of financial instruments
The carrying amounts on the consolidated balance sheet, fair values and
differences between them as of March 31, 2010 of financial instruments are
set out as below:
Financial instruments of which fair values are not generally available and
are deemed to be extremely difficult to measure are excluded from the
following table.
(2) Nature of financial instruments, related risk and risk management system
Notes and accounts receivable, trade are exposed to credit risk of
24 Hitachi Koki ANNUAL REPORT 2010

Notes to Consolidated Financial Statements
Millions of yen
Carrying amount Fair value
(*1) (*1) Difference
Cash on hand and in banks ........................... ¥ 9,922 ¥ 9,922 —
Deposits......................................................... 15,197 15,197 —
Notes and accounts receivable, trade (*2).... 40,455 40,455 —
Investment securities:
Other investment securities........................ 1,038 1,038 —
Notes and accounts payable, trade............... (8,267) (8,267) —
Short-term bank loans................................... (14,448) (14,448) —
Derivatives (*3) ............................................. 53 53 —
Thousands of U.S. dollars
Carrying amount Fair value
(*1) (*1) Difference
Cash on hand and in banks ........................... $ 106,642 $ 106,642 —
Deposits......................................................... 163,338 163,338 —
Notes and accounts receivable, trade (*2).... 434,813 434,813 —
Investment securities:
Other investment securities........................ 11,156 11,156 —
Notes and accounts payable, trade............... (88,854) (88,854) —
Short-term bank loans................................... (155,288) (155,288) —
Derivatives (*3) ............................................. 570 570 —
Notes: 1. The amounts of liabilities are represented in parentheses.
2. The amounts of notes and accounts receivable, trade are presented
after allowance for doubtful accounts amounting to ¥638 million are
deducted.
3. Net debts and credits arising from derivative transactions are
presented in net value.
i. Fair value measurement of financial instruments and information for
investment securities and derivative transactions
Cash on hand and in banks, deposits and notes and accounts receivables, trade:
Book values of these accounts are deemed fair values as they are
settled in a short-term period.
Investment securities:
Fair values of investment securities are measured at quoted market
prices of stock exchanges.
See “Note 3 Market value information for securities” for additional
information on investment securities.
Notes and accounts payable, trade and short-term bank loans:
Book values of these accounts are deemed fair values as they are
settled in a short-term period.
Derivatives:
See “Note 5 Derivative transactions” for the relevant information.
ii. Unlisted equity shares, amounting to ¥178 million ($1,913 thousand) at
March 31, 2010, are excluded from other investment securities above as
quoted market prices are not available and their future cash flows cannot
be estimated.
Redemption schedule for monetary claims and securities with maturity
after the year-end are set out below.
Millions of yen
Within 1 year
Thousands of U.S. dollars
Within 1 year
Cash on hand and in banks.......................... ¥ 9,922 $106,642
Deposits....................................................... 15,197 163,338
Notes and accounts receivable, trade......... 40,455 434,813
Investment securities
Other investment securities with maturity.... — —
Total.......................................................... ¥65,575 $704,804
8. SHORT-TERM BANK LOANS
(a) The weighted-average rate of interest for short-term bank loans is
approximately 1.54% at March 31, 2010 and 2.1% at March 31, 2009.
(b) The following assets are pledged as collateral for short-term bank loans
at March 31, 2010 and 2009:
Millions of yen
Thousands of
U.S. dollars
2010 2009 2010
Trade receivables – accounts....................... — ¥ 877 —
Inventories.................................................... — 2,003 —
Total........................................................... — ¥2,880 —
9. INCOME TAXES
Taxes on income consist of corporation tax, inhabitant taxes and
enterprise tax. The aggregate statutory tax rate on income before income
taxes and minority interests was approximately 40.5% for 2010, 2009 and
2008.
The significant differences between the statutory tax rate and the
Company’s effective tax rate for financial statement purposes for the years
ended March 31, 2010 and 2009 were as follows:
2010 2009
Statutory tax rate.......................................................... 40.5% 40.5%
Non-deductible expenses.......................................... 2.3 1.4
Change in valuation allowance................................. 9.2 13.6
Difference in statutory tax rate
of overseas subsidiaries.......................................... (6.3) (8.3)
Dividend income from overseas subsidiaries............ 19.7 8.7
Experimental research expenses............................... (4.1) (2.7)
Deduction for foreign taxes paid............................... (18.4) (11.2)
Tax on retained earnings of specified
overseas subsidiaries.............................................. 1.3 2.3
Others......................................................................... (0.5) (0.5)
Effective tax rate.......................................................... 43.7% 43.8%
Hitachi Koki ANNUAL REPORT 2010
25

Significant components of deferred tax assets and liabilities as of March
31, 2010 and 2009 are as follows:
Millions of yen
Thousands of
U.S. dollars
2010 2009 2010
Deferred tax assets:
Retirement benefits.................................... ¥ 683 ¥ 639 $ 7,341
Accrued bonuses......................................... 673 718 7,233
Accrued expenses....................................... 515 575 5,535
Devaluation of inventories.......................... 965 1,120 10,372
Foreign tax credit carry-forward................. 481 195 5,170
Unrealized intercompany profit
of inventories............................................. 1,718 3,163 18,465
Tax loss carry-forward................................ 1,033 941 11,103
Others.......................................................... 870 844 9,351
Subtotal......................................................... 6,941 8,199 74,602
Valuation allowance...................................... (1,602) (1,620) (17,218)
Total deferred tax assets............................... 5,338 6,578 57,373
Deferred tax liabilities:
Retained earnings of overseas subsidiaries... (88) (106) (946)
Others.......................................................... (3) (77) (32)
Total deferred tax liabilities.......................... (92) (183) (989)
Net deferred tax assets................................. ¥ 5,246 ¥ 6,395 $ 56,384
10. CONTINGENT LIABILITIES
Guarantees of employees’ loans were ¥65 million ($699 thousand) and
¥72 million at March 31, 2010 and 2009, respectively.
Guarantees of trade notes discounted and endorsed in the ordinary
course of business were ¥42 million at March 31, 2009.
11. RETIREMENT BENEFITS AND RETIREMENT COSTS
Employees’ severance and retirement benefits included in the liability
section of the consolidated balance sheets as of March 31, 2010 and 2009
consist of the following:
Millions of yen
Thousands of
U.S. dollars
2010 2009 2010
Projected benefit obligation.......................... ¥(33,439) ¥(34,332) $(359,405)
Fair value of plan assets................................ 23,981 22,668 257,749
Unfunded benefit obligations........................ (9,457) (11,663) (101,644)
Unrecognized actuarial differences............... 8,378 10,854 90,048
Unrecognized prior service cost.................... (663) (734) (7,126)
Net retirement benefit obligation................. (1,742) (1,543) (18,723)
Prepaid pension costs.................................... (1,267) (1,557) (13,618)
Employees’ severance and
retirement benefits................................... ¥ (3,009) ¥ (3,101) $ (32,341)
Included in the consolidated statements of income for the years ended
March 31, 2010, 2009 and 2008 is a severance and retirement benefit
expense comprising the following:
Thousands of
Millions of yen
U.S. dollars
2010 2009 2008 2010
Service costs-benefits earned
during the year.......................... ¥ 986 ¥ 881 ¥ 905 $10,598
Interest cost on projected
benefit obligation..................... 863 908 953 9,276
Expected return on plan assets... (584) (741) (846) (6,277)
Amortization of actuarial differences... 1,002 611 407 10,770
Amortization of prior service costs... (70) (70) (66) (752)
Severance and retirement
benefit expense........................ 2,197 1,590 1,353 23,613
Loss on termination of
retirement benefit system........ — — 339 —
Total......................................... ¥2,197 ¥1,590 ¥1,692 $23,613
In addition to the severance and retirement benefits expense described
above, the Company and certain consolidated subsidiaries paid special
retirement benefits amounting to ¥2,032 million in 2009.
The discount rates used by the Company and certain consolidated
subsidiaries are principally 2.3%, 2.5% and 2.5% for the years ended March
31, 2010, 2009 and 2008, respectively. The rates of expected return on plan
assets used by the Company and certain consolidated subsidiaries are
principally 2.5%, 2.5% and 2.5% for the years ended March 31, 2010, 2009
and 2008, respectively. The estimated amount of all retirement benefits to
be paid at the future retirement date is allocated equally to each service
year using the estimated number of total service years. Actuarial gains and
losses are recognized as income or expense in equal amounts over 15 years
commencing from the succeeding period. Past service costs are recognized
as income or expense in equal amounts over 15 years.
12. SHAREHOLDERS’ EQUITY
Significant contents of the Japanese Corporate Law (the “Corporate
Law”) that affect financial and accounting matters are summarized below.
Under Japanese laws and regulations, the entire amount paid for new
shares is required to be designated as common stock. However, a company
may, by a resolution of the Board of Directors, designate an amount not
exceeding one-half of the price of the new shares as additional paid-in
capital, which is included in capital surplus.
Under the Corporate Law, companies can pay dividends at any time
during the fiscal year in addition to the year-end dividend upon resolution at
the shareholders’ meeting. For companies that meet certain criteria such as;
(1) having a Board of Directors, (2) having independent auditors, (3) having a
26 Hitachi Koki ANNUAL REPORT 2010

Notes to Consolidated Financial Statements
Board of Corporate Auditors, and (4) the term of service of the directors is
prescribed as one year rather than two years by its articles of incorporation,
the Board of Directors may declare dividends (except for dividends in kind) if
the company has prescribed so in its articles of incorporation.
The Corporate Law also provides certain limitations on the amounts
available for dividends or purchase of treasury stock. The limitation is
defined as the amount available for distribution to the shareholders, but the
amount of net assets after dividends must be maintained at no less than
¥3 million.
The maximum amount that companies can distribute as dividends is
calculated based on their non-consolidated financial statements in
accordance with Japanese laws and regulations.
Appropriations are not accrued in the financial statements for the period
to which they relate, but are recorded in the subsequent accounting period
when the Board of Directors’ approval has been obtained.
Retained earnings at March 31, 2010 include the amounts representing
the year-end cash dividends of ¥6 ($0.06) per share, aggregating ¥608
million ($6,535 thousand) which was approved at the Board of Directors’
meeting held on April 26, 2010.
Cash dividends charged to retained earnings during the years ended
March 31, 2010, 2009 and 2008 represent dividends paid out during these
periods.
The Corporate Law requires that an amount equal to 10% of dividends
must be appropriated as a legal earnings reserve (a component of retained
earnings) or as additional paid-in capital (a component of capital surplus)
depending on the equity account charged upon the payment of such
dividends until the total of aggregate amount of legal earnings reserve and
additional paid-in capital equals 25% of the common stock. Under the
Corporate Law, the aggregate amount of additional paid-in capital and legal
earnings reserve that exceeds 25% of the common stock may be made
available for dividends by resolution of the shareholders. Under the
Corporate Law, all additional paid-in-capital and all legal earnings reserve
may be transferred to other capital surplus and other retained earnings,
respectively, which are potentially available for dividends.
The Corporate Law also provides that common stock, legal earnings
reserve, additional paid-in capital, other capital surplus and retained
earnings can be transferred among the accounts under certain conditions
upon resolution of the shareholders.
The Corporate Law also provides for companies to purchase treasury
stock and dispose of such treasury stock by resolution of the Board of
Directors. The amount of treasury stock purchased cannot exceed the
amount available for distribution to the shareholders, which is determined
by specific formula.
13. STOCK OPTION (STOCK PURCHASE RIGHTS)
By general resolution at the 82nd general shareholders’ meeting held on
June 25, 2004, the Company introduced a stock option plan in accordance
with Article 280-20 and 280-21 of the former Commercial Code of Japan,
which was reformed and replaced by a new corporate law on May 1, 2006,
and granted stock purchase rights at advantageous terms to nine directors
and four employees at the closing of the 82nd general shareholders’
meeting.
The stock purchase rights can be exercised at a price of ¥722 ($7.76) per
share in the period from August 1, 2006 to August 31, 2010 and a total of
305,000 shares of common stock could be issued by the exercise of these
rights. The exercise price of stock purchase rights would be adjusted, if the
Company issues new shares at a price below the market price. As of March
31, 2010, stock purchase rights for 6,000 shares of common stock are issued
and outstanding under the plan.
By general resolution at the 83rd general shareholders’ meeting held on
June 28, 2005, the Company introduced a stock option plan in accordance
with Article 280-20 and 280-21 of the former Commercial Code of Japan,
which was reformed and replaced by a new corporate law on May 1, 2006,
and granted stock purchase rights at advantageous terms to nine directors
and four employees at the closing of the 83rd general shareholders’
meeting.
The stock purchase rights can be exercised at a price of ¥1,313 ($14.11)
per share in the period from August 1, 2007 to August 31, 2011 and a total
of 290,000 shares of common stock could be issued by the exercise of these
rights. The exercise price of stock purchase rights would be adjusted, if the
Company issues new shares at a price below the market price. As of March
31, 2010, stock purchase rights for 191,000 shares of common stock are
issued and outstanding under the plan.
Hitachi Koki ANNUAL REPORT 2010
27

14. SEGMENT INFORMATION
(a) Information by business segment
The Company and its consolidated subsidiaries’ primary business activities are divided into two business segments: Power tools and Life-science
instruments.
As the power tools business represents more than 90% of total segments in net sales, operating income and assets for the year ended March 31, 2008,
business segment information for 2008 is omitted.
Business segment information for the years ended March 31, 2010 and 2009 is as follows:
Millions of yen
2010
Life-science
Elimination
Power tools instruments or corporation Consolidated
Net sales:
Outside customers.......................................................................................... ¥113,388 ¥ 5,778 — ¥119,166
Intersegment................................................................................................... — — — —
Total sales................................................................................................... 113,388 5,778 — 119,166
Operating expenses........................................................................................ 109,841 4,140 — 113,981
Operating income ....................................................................................... ¥ 3,546 ¥ 1,638 — ¥ 5,184
Identifiable assets.......................................................................................... ¥136,778 ¥12,203 — ¥148,982
Depreciation and amortization....................................................................... 3,703 215 — 3,919
Capital expenditures....................................................................................... 1,987 93 — 2,080
Millions of yen
2009
Life-science
Elimination
Power tools instruments or corporation Consolidated
Net sales:
Outside customers.......................................................................................... ¥136,424 ¥ 5,588 — ¥142,013
Intersegment................................................................................................... — — — —
Total sales................................................................................................... 136,424 5,588 — 142,013
Operating expenses........................................................................................ 125,702 4,090 — 129,792
Operating income ....................................................................................... ¥ 10,722 ¥ 1,497 — ¥ 12,220
Identifiable assets.......................................................................................... ¥142,490 ¥10,062 — ¥152,553
Depreciation and amortization....................................................................... 4,430 202 — 4,632
Capital expenditures....................................................................................... 3,322 184 — 3,507
Thousands of U.S. dollars
2010
Life-science
Elimination
Power tools instruments or corporation Consolidated
Net sales:
Outside customers.......................................................................................... $1,218,702 $ 62,102 — $1,280,804
Intersegment................................................................................................... — — — —
Total sales................................................................................................... 1,218,702 62,102 — 1,280,804
Operating expenses........................................................................................ 1,180,578 44,497 — 1,225,075
Operating income ....................................................................................... $ 38,113 $ 17,605 — $ 55,718
Identifiable assets.......................................................................................... $1,470,099 $131,159 — $1,601,268
Depreciation and amortization....................................................................... 39,800 2,311 — 42,122
Capital expenditures....................................................................................... 21,356 1,000 — 22,356
28 Hitachi Koki ANNUAL REPORT 2010

Notes to Consolidated Financial Statements
(b) Information by geographic area
A summary of the sales and operating income by geographic area for the years ended March 31, 2010, 2009 and 2008 is as follows:
Millions of yen
2010
Elimination
Japan Asia Europe North America Others or corporation Consolidated
Net sales:
Outside customers............................................. ¥40,119 ¥ 7,475 ¥43,524 ¥22,075 ¥5,972 — ¥119,166
Intersegment...................................................... 15,753 30,784 103 352 — ¥(46,993) —
Total sales...................................................... 55,872 38,259 43,627 22,427 5,972 (46,993) 119,166
Operating expenses........................................... 55,681 35,088 44,151 23,735 5,901 (50,578) 113,981
Operating income (loss)................................. ¥ 190 ¥ 3,171 ¥ (524) ¥ (1,308) ¥ 71 ¥ 3,585 ¥ 5,184
Identifiable assets............................................. ¥82,639 ¥27,154 ¥45,227 ¥17,903 ¥3,502 ¥(27,445) ¥148,982
Millions of yen
2009
Elimination
Japan Asia Europe North America Others or corporation Consolidated
Net sales:
Outside customers............................................. ¥45,538 ¥10,095 ¥55,044 ¥25,384 ¥5,950 — ¥142,013
Intersegment...................................................... 29,740 45,406 256 711 33 ¥(76,148) —
Total sales...................................................... 75,278 55,502 55,300 26,096 5,984 (76,148) 142,013
Operating expenses........................................... 67,403 51,154 54,527 25,883 5,746 (74,921) 129,792
Operating income........................................... ¥ 7,875 ¥ 4,348 ¥ 772 ¥ 213 ¥ 237 ¥ (1,226) ¥ 12,220
Identifiable assets............................................. ¥82,065 ¥32,426 ¥48,389 ¥20,200 ¥2,673 ¥(33,203) ¥152,553
Millions of yen
2008
Elimination
Japan Asia Europe North America Others or corporation Consolidated
Net sales:
Outside customers............................................. ¥53,818 ¥10,224 ¥67,267 ¥37,172 ¥6,273 — ¥174,756
Intersegment...................................................... 37,068 45,534 343 227 15 ¥(83,190) —
Total sales...................................................... 90,887 55,759 67,611 37,399 6,289 (83,190) 174,756
Operating expenses........................................... 74,199 50,454 64,553 38,120 5,982 (80,874) 152,435
Operating income (loss)................................. ¥16,688 ¥ 5,305 ¥ 3,057 ¥ (721) ¥ 306 ¥ (2,315) ¥ 22,320
Identifiable assets............................................. ¥96,101 ¥30,232 ¥49,001 ¥21,363 ¥2,626 ¥(31,823) ¥167,501
Thousands of U.S. dollars
2010
Elimination
Japan Asia Europe North America Others or corporation Consolidated
Net sales:
Outside customers............................................. $431,202 $ 80,342 $467,799 $237,264 $64,187 — $1,280,804
Intersegment...................................................... 169,314 330,868 1,107 3,783 — $(505,084) —
Total sales...................................................... 600,516 411,210 468,906 241,047 64,187 (505,084) 1,280,804
Operating expenses........................................... 598,463 377,128 474,538 255,105 63,424 (543,616) 1,225,075
Operating income (loss)................................. $ 2,042 $ 34,082 $ (5,632) $ (14,058) $ 763 $ 38,532 $ 55,718
Identifiable assets............................................. $888,209 $291,853 $486,103 $192,423 $37,640 $(294,981) $1,601,268
Notes: 1. Geographic areas are decided based on geographical proximity.
2. The principal nations or regions included in each area other than Japan are as follows:
Asia ................... Singapore, Malaysia and China
Europe ............... Germany, France, Netherlands and United Kingdom
North America ... U.S.A. and Canada
Others ............... Australia
Hitachi Koki ANNUAL REPORT 2010
29

Notes to Consolidated Financial Statements
(c) Overseas net sales
A summary of overseas net sales for the years ended March 31, 2010, 2009 and 2008 is as follows:
Millions of yen
2010
Asia Europe North America Others Total
Overseas net sales............................................................................................... ¥8,269 ¥44,387 ¥23,068 ¥6,637 ¥ 82,363
Consolidated net sales......................................................................................... — — — — 119,166
Percentage of overseas net sales over consolidated net sales........................... 6.9% 37.2% 19.4% 5.6% 69.1%
Millions of yen
2009
Asia Europe North America Others Total
Overseas net sales............................................................................................... ¥10,995 ¥55,888 ¥27,110 ¥6,924 ¥100,919
Consolidated net sales......................................................................................... — — — — 142,013
Percentage of overseas net sales over consolidated net sales........................... 7.7% 39.4% 19.1% 4.9% 71.1%
Millions of yen
2008
Asia Europe North America Others Total
Overseas net sales............................................................................................... ¥12,204 ¥66,747 ¥39,187 ¥7,932 ¥126,072
Consolidated net sales......................................................................................... — — — — 174,756
Percentage of overseas net sales over consolidated net sales........................... 7.0% 38.2% 22.4% 4.5% 72.1%
Thousands of U.S. dollars
2010
Asia Europe North America Others Total
Overseas net sales............................................................................................... $88,876 $477,074 $247,936 $71,335 $ 885,243
Consolidated net sales......................................................................................... — — — — 1,280,804
Percentage of overseas net sales over consolidated net sales........................... 6.9% 37.2% 19.4% 5.6% 69.1%
Notes: 1. Geographic areas are decided based on geographical proximity.
2. The principal nations or regions included in each area other than Japan are as follows:
Asia ................... Singapore, Malaysia and China
Europe ............... Germany, France, Netherlands, United Kingdom and Russia
North America ... U.S.A. and Canada
Others ............... Australia
3. Overseas net sales comprise sales from the Company and its consolidated subsidiaries to nations or regions other than Japan.
15. TRANSACTIONS WITH RELATED COMPANY
The outstanding common stock of the Company is directly and indirectly
owned 51.3% by Hitachi, Ltd. as of March 31, 2010.
Balances with the related company, Hitachi, Ltd., and its subsidiaries as
of March 31, 2010 and 2009, and related transactions for the years ended
March 31, 2010, 2009 and 2008 are summarized as follows:
Thousands of
Millions of yen U.S. dollars
2010 2009 2010
Balances:
The related company:
Deposits.................................................. ¥12,735 ¥ 5 $136,877
Millions of yen
Thousands of
U.S. dollars
2010 2009 2008 2010
Principal transactions:
The related company:
Deposits............................... ¥45,800 ¥51,800 ¥49,717 $492,261
Interest received.................. 29 66 96 312
Subsidiaries of the related company:
Sales..................................... — 797 1,775 —
Factoring............................... 1,808 3,460 3,951 19,433
Subsidiaries of the related company:
Notes and accounts receivable, trade.... — 258 —
Notes and accounts payable, trade........ 478 790 5,138
30 Hitachi Koki ANNUAL REPORT 2010

Independent Auditors’ Report
Hitachi Koki ANNUAL REPORT 2010
31

Global Network (As of June 30, 2010)
Manufacturing Company
Company and Sales Office Names and Addresses
Hitachi Koki Co,. Ltd.
Headquarters
Shinagawa Intercity Tower A, 20th Floor,
15-1, Konan 2-chome, Minato-ku, Tokyo 108-6020, Japan
Tel: 81-3-5783-0601
Katsuta Plant
1060 Takeda, Hitachinaka, Ibaraki 312-8502, Japan
Tel: 81-29-273-8111
Sawa Plant
1450 Tarazaki, Hitachinaka, Ibaraki 312-0003, Japan
Tel: 81-29-285-1112
ASIA/OCEANIA
●1 Hitachi Koki (Malaysia) Sdn. Bhd.
PLO53, Kawasan Perindustrian Senai (II), K.B. No. 114,
81400 Senai, Johor, Malaysia
Tel: 60-7-5992345 Fax: 60-7-5992355
●2 Hitachi Koki India Ltd.
Plot No. 9A, 1st Phase, Peenya Industrial Area, Bangalore, 560058, India
Tel: 91-80-41170777 Fax: 91-80-41171222
●3 Guang Dong Hitachi Koki Co., Ltd.
Industry Country Wealthy Zone, Industry Road, Hua Long
Town, Pan Yu district, Guangzhou City, Guang Dong, China
Tel: 86-20-84754622 Fax: 86-20-84754623
●4 Fujian Hitachi Koki Co., Ltd.
Hutang, Fuxing Investment Zone, Fuzhou, Fujian, China
Tel: 86-591-83620201 Fax: 86-591-83620518
●5 Hitachi Koki Taiwan Co., Ltd.
No. 156 Gongye 9th Road, Dali City, Taichung County 41280, Taiwan
Tel: 886-4-2491-0707 Fax: 886-4-2491-8787
●6 Hitachi Koki (Singapore) Pte. Ltd.
31, Jurong Port Road, #01-11M, Jurong Logistic Hub, Singapore 619115
Tel: 65-6861-0211 Fax: 65-6861-4066
●7 Hitachi Koki (Singapore) Gulf Branch
P.O. Box 261502, Jafza Lob 19, Flat No. Lb192207
South Zone, Jebel Ali, Dubai, U.A.E.
Tel: 971-4-8-865-865 Fax: 971-4-8-865-867
32 Hitachi Koki ANNUAL REPORT 2010
●8 Hitachi Koki Asia Co., Ltd.
Unit A-D, 11th Floor, CDW Building, 388 Castle Peak Road,
Tsuen Wan, N.T., Hong Kong, China
Tel: 852-2437-9291 Fax: 852-2417-9432
●9 Hitachi Koki (China) Co., Ltd.
Room 19B-C, Shartex Plaza, No. 88 Zun Yi Nan Rd.,
Shanghai, China
Tel: 86-21-6295-1736 Fax: 86-21-6278-6086
●10 Hitachi Power Tools (Thailand) Co., Ltd.
88 Krungthepkreetha Road, Huamark Sub-district, Bangkapi
District, Bangkok 10240, Thailand
Tel: 66-2-379-4460 Fax: 66-2-379-4712
●11 Hitachi Power Tools Australia Pty. Ltd.
Unit 1, 10 Boden Road, Seven Hills, NSW 2147, Australia
Tel: 61-2-8887-8100 Fax: 61-2-8887-8180
EUROPE
●12 Hitachi Koki Europe Ltd.
Clonshaugh Business + Technology Park, Dublin 17, Ireland
Tel: 353-1-803-6222 Fax: 353-1-803-6272
●13 Hitachi Power Tools Belgium N.V./S.A.
Koningin Astridlaan 51, B-1780 Wemmel, Belgium
Tel: 32-2-460-1720 Fax: 32-2-460-2542
●14 Hitachi Power Tools Denmark A/S
Lillebaeltsvej 90, 6715 Esbjerg N, Denmark
Tel: 45-75-143200 Fax: 45-75-143666
●15 Hitachi Power Tools Europe GmbH
Siemensring 34, 47877 Willich, Germany
Tel: 49-2154-49930 Fax: 49-2154-499350
●16 Hitachi Power Tools France S.A.S.
Parc de l’Eglantier -22, rue des Cerisiers, Lisses-
C.E. 1541, 91015 EVRY CEDEX, France
Tel: 33-1-69474949 Fax: 33-1-60861416
●17 Hitachi Power Tools Finland Oy
Tupalankatu 9, 15680 Lahti, Finland
Tel: 358-20-7431-530 Fax: 358-20-7431-531
●18 Hitachi Power Tools Iberica, S.A.
C/Migjorn, 1 Poligono Norte, 08226 Terrassa (Barcelona), Spain
Tel: 34-93-735-6722 Fax: 34-93-735-7442

Manufacturing Company
Sales Branches in Japan
Plants of Subsidiaries
●19 Hitachi Power Tools Netherlands B.V.
Brabanthaven 11, 3433 PJ Nieuwegein, The Netherlands
Tel: 31-30-6084040 Fax: 31-30-6067266
●20 Hitachi Power Tools Netherlands B.V. Moscow Branch
Kashirskoye shosse 65, 4F, Moscow, 115583, Russia
Tel: 7-495-727-4460 Fax: 7-495-727-4461
●21 Hitachi Power Tools Oesterreich GmbH
Str. 7, Objekt 58/A6, Industriezentrum NO-Sud, 2355 Wiener Neudorf, Austria
Tel: 43-2236-64673/5 Fax: 43-2236-63373
●22 Hitachi Power Tools Polska Sp.z.o.o.
Kleszczowa 27, 02-485, Warszawa, Poland
Tel: 48-22-863-3378 Fax: 48-22-863-3382
●23 Hitachi Power Tools Hungary Kft.
1106 Bogancsvirag U.5-7, Budapest, Hungary
Tel: 36-1-2643433 Fax: 36-1-2643429
●24 Hitachi Power Tools Czech s.r.o.
Modricka 205, 664 48 Moravany, Czech Republic
Tel: 420-547-422-660 Fax: 420-547-213-588
●25 Hitachi Power Tools Romania S.R.L.
SF Gheorghe Street, NR20, 77145 Oras Pantelimon, Jud. Ilfov, Romania
Tel: 40-31-805-2719 Fax: 40-31-805-2577
●26 Hitachi Power Tools Slovakia s.r.o.
913 03 Drietoma 928, Slovak Republic
Tel: 421-3-2649-9122 Fax: 421-3-2649-9141
●27 Hitachi Power Tools Norway AS
Kjeller Vest 7, N-2007 Kjeller Postboks 124, N-2027 Kjeller, Norway
Tel: 47-66-92-66-00 Fax: 47-66-92-66-50
●28 Hitachi Power Tools RUS L.L.C.
Kashirskoye shosse 65, 4F, 115583 Moscow, Russia
Tel: 7-495-727-4460 Fax: 7-495-727-4461
●29 Hitachi Power Tools Sweden AB
Rotebergsvagen 2B SE-192 78 Sollentuna, Sweden
Tel: 46-8-598-999-00 Fax: 46-8-598-999-40
●30 Hitachi Power Tools (U.K.) Ltd.
Precedent Drive, Rooksley, Milton Keynes, MK 13, 8PJ, U.K.
Tel: 44-1908-660663 Fax: 44-1908-606642
●31 Hitachi Fercad Power Tools Italia S.p.A.
Via Retrone 49, 36077 Altavilla Vicentina (VI), Italy
Tel: 39-0444-548111 Fax: 39-0444-548110
●32 Carat International B.V.
Nikkelstraat 18 4823 AB Breda, The Netherlands
Tel: 31-765-422-422 Fax: 31-765-422-422
NORTH AMERICA
●33 Hitachi Koki U.S.A., Ltd.
3950 Steve Reynolds Blvd., Norcross, Georgia 30093, U.S.A.
Tel: 1-770-925-1774 Fax: 1-770-279-4293
●34 Hitachi Koki Canada Corp.
450 Export Blvd., Unit B, Mississauga, Ontario L5S 2A4, Canada
Tel: 1-905-564-9477 Fax: 1-905-564-0902
LATIN AMERICA
●35 Hitachi Koki do Brasil Ltda.
Alameda Venus, 219 Distrito Industrial American Park Cep: 13347-659-Indaiatuba-SP Brasil
Tel: 55-19-3936-9730 Fax: 55-19-3936-9731
●36 Hitachi Power Tools de Mexico S.A. de C.V.
Francisco Petrarca 239A Colonia Chapultepec Morales
Delegacion Miguel Hidalgo C.P. 11570 Mexico, D.F., Mexico
Tel: 52-55-5254-6673 Fax: 52-55-5254-5201
●37 Hitachi Power Tools Panama S.A.
Avenida Balboa, Edif, BBVA, Piso 21 B-1, Panamá, Rep. de Panamá
Tel: 507-301-0238 Fax: 507-301-0239
DOMESTIC
●38 Hitachi Koki Haramachi Co., Ltd.
70 Minami-Harada, Kita-Nagano, Haramachi-ku, Minami-Soma, Fukushima 975-0072
Tel: 81-244-26-1821 Fax: 81-244-24-5818
●39 Nikko Tanaka Engineering Co., Ltd.
3-4-29 Tsudanuma, Narashino, Chiba 275-0016
Tel: 81-47-472-1111 Fax: 81-47-479-0558
●40 Sankyo Diamond Industrial Co., Ltd.
1770 Hongo, Ebina, Kanagawa 243-0417
Tel: 81-46-238-6161 Fax: 81-46-238-6165
●41 Hitachi Koki Sales Co., Ltd.
5th Floor, Heiwajima Distribution Center, 5-5-36, Heiwajima, Ota-ku, Tokyo 143-0006
Tel: 81-3-5753-7700 Fax: 81-3-5753-7669
●42 Nikko Solutions Co., Ltd.
1060 Takeda, Hitachinaka, Ibaraki 312-8502
Tel: 81-29-276-7444 Fax: 81-29-276-7495
Hitachi Koki ANNUAL REPORT 2010
33

Corporate Data (As of March 31, 2010)
Hitachi Koki Co., Ltd.
Founded
December 18, 1948
Headquarters
Shinagawa Intercity Tower A, 20th Floor,
15-1, Konan 2-chome, Minato-ku, Tokyo 108-6020, Japan
Tel: 81-3-5783-0601
Katsuta Plant
1060 Takeda, Hitachinaka, Ibaraki 312-8502, Japan
Tel: 81-29-273-8111
Representative
President & Director, COO Kiyoshi Kato
Capital
¥17,813 million
Employees (Consolidated)
4,653
History
December 1948
Founded (product lineup: power tools)
May 1949
Lists on the Tokyo Stock Exchange and Osaka Securities Exchange
November 1954
Production begins for Chemical Instruments products
(currently Life-Science Instruments)
Cordless screwdriver
June 1963
Production begins for printers (line printers for large-frame computers)
November 1971
Transfer of domestic power tool sales business from Hitachi, Ltd.
April 1973
Transfer of power tool export business from Hitachi, Ltd.
Rotary hammer
October 2002
Transfer of printer business to Hitachi, Ltd.
January 2005
Markt & Co AS* of Norway (currently Hitachi Power Tools Norway AS)
becomes a subsidiary through share acquisition
March 2005
Sankyo Diamond Industrial Co., Ltd.* becomes a subsidiary through share
acquisition
Diamond cutter
April 2007
Nikko Tanaka Engineering Co., Ltd.* established (engine tools business of
Tanaka Kogyo Co., Ltd. transferred in May 2007)
March 2009
Hitachi, Ltd. becomes the parent company of Hitachi Koki Co., Ltd. as a result
of a tender offer that increased its ownership of the voting rights of Hitachi
Koki from 38.97% to 51.07%.
Hitachi intends to maintain the listing of Hitachi Koki’s stock and to
preserve its independent management as a listed company. Hitachi
therefore has no plans to make any substantial changes to the
management policies or areas of operation of the Hitachi Koki Group.
* Accounted for as a consolidated subsidiary as of the end of the fiscal year under review.
Outdoor power equipment
34 Hitachi Koki ANNUAL REPORT 2010

30,000,000
Investor Information (As of March 31, 2010)
20,000,000
Number of Shares
Authorized 270,000,000
Outstanding 123,072,776
Number March of Shareholders
14,860
2009
Shareholder Composition
March
2010
Stock Code
6581
10,000,000
0
Listed Exchanges
Tokyo (First section), Osaka (First section)
Closing of Accounts
March
2005
Apr.
2006
Apr.
Individuals
and others
15.29%
Treasury stock
17.61%
Overseas
corporations
7.51%
Financial
institutions
16.56%
Securities
companies
0.51%
Other domestic
corporations, etc.
42.52%
General Shareholders’ Meeting
Every June
Major Shareholders
Percentage of Total Shares Issued
1. Hitachi, Ltd. 33.12%
2. Chuo Shoji, Ltd. 8.99
3. Japan Trustee Services Bank, Ltd. 4.98
4. The Master Trust Bank of Japan, Ltd. 4.67
5. Trust & Custody Services Bank, Ltd. 1.50
6. Nippon Life Insurance Company 1.14
7. The Bank of New York, Inc. 1.08
8. The Bank of Tokyo-Mitsubishi UFJ, Ltd. 0.99
9. State Street Trust and Banking Company, Limited 0.92
10. Sompo Japan Insurance Inc. 0.81
Note: In addition to the above, the Company held 21,672,513 shares (17.61%)
in treasury stock.
Stock Price Range (Tokyo Stock Exchange)
(Yen)
2,500
Net Sales by Region
(Year Ended March 31, 2009)
Billion of Yen
Total Assets/ROA
(Billions of yen)
200
(%)
12
2,000
1,500
Asia/
Others
12.6%
Japan
28.9%
150
100
152
9
6
1,000
500
0
April
2007
Europe
39.4%
North
America
19.1%
March
2008
50
0
2005 2006 2007 2008 2009
Total Assets (left Scale)
ROA (right Scale)
March
2009
3.5
3
0
March
2010
For further information, please contact:
Public Relations Office, Administration Division, Hitachi Koki Co., Ltd.
Fax: 81-3-5783-0709
e-mail: ir@hitachi-koki.co.jp
Web site: http://www.hitachi-koki.com
Treasury stock
17.61%
Financial
institutions
16.56%
Hitachi Koki ANNUAL REPORT 2010
Securities
companies
35

www.hitachi-koki.com
Printed in Japan