FOR IMMEDIATE RELEASE

Hitachi Announces Progress of “2012 Mid-term Management Plan”
Tokyo, June 9, 2011 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced aprogress of its management plan “2012 Mid-term Management Plan” to promote"Growth Driven by Social Innovation Business" & "Solid Financial Base". Summaryof progress are below.
Key Message of Today’s Announcement(1) Hitachi will achieve the original FY2012 targets (announced May 31, 2010) andrealize the further growth despite the HDD business transfer.
(2) Developed “New Globalization Plan” to accelerate the globalization as a strategic
approach.
(3) Investing on the Social Innovation Business over 1.7 trillion yen (FY2010-FY2012).
170.0 billion yen increased from original targets.
(4) Launched “Hitachi Smart Transformation Project” to accelerate cost-structurereform.
(5) Rebuild Hitachi group’s entire human capital platform to strengthen a global
human capital management.
1. Progress Overview(1) FY2010 Results, FY2011 Forecasts and FY2012 Targets
FY2010 Results FY2011 Forecasts*1 FY2012 Targets*1Revenues
9,315.8 billion yen 9,500.0 billion yen
10 trillion yen
Operating income
444.5 billion yen
400.0 billion yen
Over 5%(ratio)(4.8%)(4.2%)Net income
Consistently
attributable
238.8 billion yen
200.0 billion yen generate at least
to Hitachi, Ltd.
200 billion yen
0.8 times or
D/E ratio*2
1.03 times
below
Total Hitachi, Ltd.
Stockholders’equity

15.7%

-20%

*1 reflecting HDD business transfer*2 including noncontrolling interests and liabilities associated with the consolidation of securitized entities.

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2. Outlook of Overseas Revenue Ratio(1) Aim to achieve an overseas revenue ratio of more than 50% in FY2012(2) Personnel Organization
FY2010 Results
FY2012 Targets
Results as ofReflecting HDD
March 31, 2011 business transfer
Head count in Japan
216 k
215 k
215k
Head count overseas
107 k
120 k
145 k
(Overseas ratio)
(33%)
(36%)
Total Head count
362 k
322 k
335 k
3. Global Growth Strategy for Development of Social Innovation Business(1) Targeted Valuea. Value created and shared with customers and partners
b. Value that lasts for future generations
c. Value based on our role and mission as a manufacturer(2) Global Growth Strategya. Promote and expand glocalization (Strengthen project control center via
local leadership)<Developed “New Globalization Plan”>- Designate 11 key regions and strengthen local project control centers.
11 key regions: Arab Republic of Egypt, Central and Eastern Europe,
Federative of Republic of Brazil, Kingdom of Saudi Arabia, People’s
Republic of China, Republic of India, Republic of Indonesia, Republic ofSouth Africa, Republic of Turkey, Russia, Socialist Republic of Vietnam
FY2010 results
FY2012 targets
Total revenue of
1.9 trillion yen
2.5 trillion yen
11 target regions- Develop a six-part global framework; Americas, Europe, India, Southeast
Asia, China and Japan.
b. Expand business opportunities in collaboration with partners
c. Expand new businesses leveraging Hitachi’s strengths-more--3-

4. Focusing Business Resources and Strengthening the Business Structure(1) Focusing Business Resources
a. Continue to conduct business portfolio realignmentb. Capex and strategic investments- Concentrate investments from FY2010 to FY2012- Total amount, including investment for Great East Japan Earthquake
recovery and restoration: 1.6 trillion yen. Allocate approximately 70% to theSocial Innovation Business<Capex and strategic investment on the Social Innovation Business>
FY2012 Plan
FY2010 results
FY2011 Forecasts
220.0 billion yen
400.0 billion yen
480.0 billion yen
c. R&D Investments- Strategically allocate R&D investment- Total amount; 1.2 trillion yen. Allocate approximately 60% on the SocialInnovation Business<R&D investment on the Social Innovation Business>
FY2010 results
FY2011 Forecasts
FY2012 Plan
200.0 billion yen
230.0 billion yen
240.0 billion yen
d. Summary of Investment Plan (from FY2010 to FY2012)
Investment on the Social Innovation Business, over 1.7 trillion yen.
(2) Transform the Business Structurea. Cost-structure reform- Transform cost structure to be cost competitive globally- Conduct company-wide project, while strengthening individual business bypromoting the in-house company system- Launched “Hitachi Smart Transformation Project” [April, 2011]<Expand centralized purchasing and global procurement>
FY2009 results
FY2010 results
FY2012 Target
Centralized
23%
28%
35%
purchasing ratio
Global28%
36%
50%
procurement ratio
b. Reinforce Financial Position- Raise net income attributable to Hitachi, Ltd. to strengthen total Hitachi, Ltd.
stockholders’ equity- Reduce total assets and improve asset efficiency- Reduce interest-bearing debt by pooling funds- Continuously generate positive free cash flows-more-

-4-c. Global Human Capital- Talent management to realize Hitachi’s targeted value
Realize global growth as “One Hitachi”.
- Rebuild Hitachi Group’s entire human capital platform* Establish “Global Human Capital Division” [July 2011]* Create a human capital database covering all Hitachi Group employees[By March 2012]* Establish a global grading system for evaluating the job size andresponsibility of managers and above [By March 2012]
d. Value Creation and CSR
Create both social and economic value at the same time. Contribute to thecreation of a sustainable society.
5. FY2012 Targets Update<Business Prospects>(1) Power Systems BusinessRevenue

FY2010 results

FY2012 targets

FY2015 plan

813.2 billion yen

870.0 billion yen

1.1 trillion yen(2) Information & Telecommunications Systems BusinessRevenue

FY2010 results

FY2012 targets

FY2015 plan

1.652 trillion yen

1.75 trillion yen

2.3 trillion yen(3) Social Infrastructure & Industrial Systems Business and Rail Systems
Business*3Revenue

FY2010 results

FY2012 targets

FY2015 plan

676.4 billion yen

800.0 billion yen

1.15 trillion yen*3 Total revenues of Industrial & Social Infrastructure Systems Company and Rail Systems,
Hitachi, Ltd., Hitachi Plant Technologies, Ltd. and Hitachi Industrial Equipment Systems
Co., Ltd.

(4) Operating income ratio of Social Innovation Business
FY2009 results

FY2010 results

FY2012 targets

Social Innovation Business

3.9%

5.1%

7.0%

Company-wide total

2.3%

4.8%

Over 5.0%

Toward Next Targets(1) Deepen global growth strategy(2) Focus business resource on the Social Innovation Business(3) Conduct continuous portfolio realignment(4) Strengthen financial base(5) Upgrade global human capital
Challenge to move forward into the new era. Respond to society’s needs throughthe Social Innovation Business.
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Cautionary Statement
Certain statements found in this document may constitute “forward-looking statements” asdefined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-lookingstatements” reflect management’s current views with respect to certain future events andfinancial performance and include any statement that does not directly relate to any historical orcurrent fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,”“plan,” “project” and similar expressions which indicate future events and trends may identify“forward-looking statements.” Such statements are based on currently available information andare subject to various risks and uncertainties that could cause actual results to differ materiallyfrom those projected or implied in the “forward-looking statements” and from historical trends.
Certain “forward-looking statements” are based upon current assumptions of future events
which may not prove to be accurate. Undue reliance should not be placed on “forward-lookingstatements,” as such statements speak only as of the date of this document.
Factors that could cause actual results to differ materially from those projected or implied in any“forward-looking statement” and from historical trends include, but are not limited to:•economic conditions, including consumer spending and plant and equipment investment in
Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as
levels of demand in the major industrial sectors Hitachi serves, including, without limitation, theinformation, electronics, automotive, construction and financial sectors;•exchange rate fluctuations of the yen and other currencies in which Hitachi makes significant
sales or in which Hitachi’s assets and liabilities are denominated, particularly against the U.S.
dollar and the euro;•uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term
financing;•uncertainty as to general market price levels for equity securities in Japan, declines in which
may require Hitachi to write down equity securities that it holds;•the potential for significant losses on Hitachi’s investments in equity method affiliates;•increased commoditization of information technology products and digital media-related
products and intensifying price competition for such products, particularly in the Components& Devices and the Digital Media & Consumer Products segments;•uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate
new technologies on a timely and cost-effective basis and to achieve market acceptance forsuch products;•

rapid technological innovation;•the possibility of cost fluctuations during the lifetime of, or cancellation of, long-term contracts
for which Hitachi uses the percentage-of-completion method to recognize revenue from sales;•

fluctuations in the price of raw materials including, without limitation, petroleum and othermaterials, such as copper, steel, aluminum and synthetic resins or shortages of materials,
parts and components;•fluctuations in product demand and industry capacity;•uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative
impact of fluctuations in product demand, exchange rates and/or price of raw materials or
shortages of materials, parts and components;•

uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy tostrengthen its Social Innovation Business;•

uncertainty as to the success of restructuring efforts to improve management efficiency bydivesting or otherwise exiting underperforming businesses and to strengthen competitivenessand other cost reduction measures;•

general socioeconomic and political conditions and the regulatory and trade environment ofcountries where Hitachi conducts business, particularly Japan, Asia, the United States andEurope, including, without limitation, direct or indirect restrictions by other nations on imports
and differences in commercial and business customs including, without limitation, contract-more-

-6-terms and conditions and labor relations;•

uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi
may not control, with other corporations in the design and development of certain keyproducts;•uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights,
particularly those related to electronics and data processing technologies;•uncertainty as to the outcome of litigation, regulatory investigations and other legal
proceedings of which the Company, its subsidiaries or its equity method affiliates havebecome or may become parties;•the possibility of incurring expenses resulting from any defects in products or services ofHitachi;•the possibility of disruption of Hitachi’s operations in Japan by earthquakes, tsunamis or othernatural disasters, including the possibility of continuing adverse effects on Hitachi’s operations
as a result of the earthquake and tsunami that struck northeastern Japan on March 11, 2011;•uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as
Hitachi’s ability to protect its confidential information or that of its customers;•

uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its significant
employee benefit related costs; and•uncertainty as to Hitachi’s ability to attract and retain skilled personnel.

The factors listed above are not all-inclusive and are in addition to other factors contained inHitachi’s periodic filings with the U.S. Securities and Exchange Commission and in other materials
published by Hitachi.

About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading
global electronics company with approximately 360,000 employees worldwide.
Fiscal 2010 (ended March 31, 2011) consolidated revenues totaled 9,315 billion yen($112.2 billion). Hitachi will focus more than ever on the Social Innovation Business,
which includes information and telecommunication systems, power systems,environmental, industrial and transportation systems, and social and urban systems,
as well as the sophisticated materials and key devices that support them. For more
information on Hitachi, please visit the company's website at http://www.hitachi.com.
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Information contained in this news release is current asof the date of the press announcement, but may be subject
to change without prior notice.
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