FOR IMMEDIATE RELEASE

Hitachi Announces “2015 Mid-term Management Plan”
Tokyo, May 16, 2013 --- Hitachi, Ltd. (TSE:6501) today announced that it has
formulated a management plan “2015 Mid-term Management Plan” to promote achieving
growth and Hitachi’s transformation driven by Social Innovation Business. Summary of“2015 Mid-term Management Plan” are below.
1. FY2015 Target(1) Management Target
Average ofFY2015 Target*１
Revenues

FY2010-2012

10 trillion yen 9,340.9 billion yen

EBIT*2(Operating income) ratio

Over 7%(Over 7%)

4.9%(4.6%)

Net income attributable toHitachi, Ltd. stockholders

Over 350 billion yen

253.7 billion yen

Over 70 yen

55 yenNet income attributable toHitachi, Ltd. stockholders per share
Manufacturing, services & others
Total Hitachi, Ltd. stockholders’ equity ratio

Over 30%

As of March 31, 2013

23.2%

*1 Assumed exchange rate: 90 yen to the U.S. dollar, 115 yen to the euro
*2 EBIT: Earnings before Interest and Taxes(2) Service revenue ratio, Overseas revenue ratio, Headcounts
FY2015 Target *１

FY2012 Results

Service revenue ratio(Including systems solutions)Over 40%

30%

Overseas revenue ratio

Over 50%

41%Japan Headcount200k208k

Overseas Headcount150k118k(3) Achievement, Estimated effect of Hitachi Smart Transformation ProjectFY2011 Results
35.0 billion yen

FY2012 Results

FY2013 Forecast

FY2011-15 total

100.0 billion yen

400.0 billion yen

75.0 billion yen- more --2-

2. Summary of 2015 Mid-term Management Plan
(1) 2015 Mid-term Management Plan Management Focus
a. Innovation：Strengthen service businesses that maximize the utilization ofIT and bring about innovationb. Global：Deliver Innovation to Customers and Society globallyc. Transformation ：Transform Hitachi - To deliver innovation by standardized andspeedy operation(2) Hitachi’s Vision and 2015 Mid-term Management Plana. Hitachi’s Vision
Hitachi delivers innovations that answer society’s challenges.
With our talented team and proven experience in global markets, we can inspire
the worldb. 2015 Mid-term Management Plan for Realizing Hitachi’s Vision
Social Innovation Business
Identify issues from customer perspectives and work on solutions together withcustomers, as “One Hitachi”
Realize innovations by providing solutions that combine products, services
and highly sophisticated IT (Cloud)Elements of Hitachi’s Solutions- Services:Deliver solution to our customers from- Service Platform on the Cloud- Products

maintenance operation and outsourcing tomanagement support:Create solution through analysis and evaluation ofcollected data using cutting-edge IT:Provide base of solution with broader systems
expertise and technologies(3) Global Expansion of the Social Innovation Businessa. Accelerating Social Innovation Business• Innovation through cloud-based services- Service platform on the Cloud :Support formulate management initiatives by utilizing
business intelligence obtained through collection,storage, analization and evaluation of information- Services:Expansion of the service business scope fromequipment maintenance services and outsourcing andoperating services to management support services- more --3-b. Growth in the Global Market• Strengthen capabilities for comprehending customers’ issues and providing
solutions- Expand sales, consulting, marketing and engineering functions in each area
• Delivering solutions and services- Strengthen project management, plant construction and service provision
by utilizing cloud service• Main countries and regions for offering solutions- North America, Brazil, U.K. and Eastern Europe, Sub-Saharan and South Africa,India and ASEAN, China, Australia, Japan• Provide optimum solutions that meet regional needs- Energy, Transport, Water and Natural resources, Big data (IT),City management, Healthcare, Logistics, Financec. R&D: Key Driver for Global Growth• Expand the Social Innovation Business globally-- Leveraging R&D capability and global network -- Closely tied to customers locally providing R&D capabilities- Develop the world-class cutting-edge R&D with combining systems, products
and IT on the Cloud- Promote open innovation with customers and business partners for contributing
to solve customers’ issues(4) Promoting Transformation
a. Operation and Global Talent• Global Operation：Global Shift and Business Reform- Rebuild SCM*3 for operation efficiency and quick response to market*3 SCM: Supply Chain Management- Leverage business intelligence (BI) capability- Optimize working capital and balance sheet leveraging financial expertise for
Hitachi’s transformation• Global Talent：Leverage Global Talent to lead business- Global Grading system- Assignment through global job rotation- Appoint leaders from global talent pool

- more --4-b. Accelerate the Hitachi Smart Transformation Project and establish global
operation standard• 2015 Mid-term Management Plan：Continue focus on reforming operating
structure and on-going measures• Main measures- Simplify the group structure (eliminate waste by clarifying roles)- Expand global usage of shared services- Global standardization and integration of IT & operational systems
c. Employ Six Group structure• Transform to Market Driven StructureMarketGroup

Manufacturer, Public sector,
Urban Infrastructure, Transportation

Infrastructure Systems

Financial, Public, Industry, Retail,Telecommunication

Information & Telecommunication
Systems

Power Producer,
Power transmission and distributor

Power Systems

Construction, Mining

Construction Machinery

Machinery, Electric Components

High Functional Material & Components

Automotive

Automotive Systems

d. Accelerate Transformation of Business Portfolio• Strengthening the Social Innovation Business through business expansion andselection & concentratione. Thermal Power Generation Systems Business Integration- Thermal power systems business as a Global Leading Business• Accelerate transformation to a global leading business throughthe integration with Mitsubishi Heavy Industries, Ltd.
- The JV to be global top- Hitachi’s power business synergized with the JV(5) As a Global Major Player
Accelerating Transformation as a Global Major Player• Serving the World with Our Social Innovation Business
SOCIAL INNOVATION - IT'S OUR FUTURE- more --5-Cautionary Statement
Certain statements found in this document may constitute “forward-looking statements” as defined in
the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect
management’s current views with respect to certain future events and financial performance andinclude any statement that does not directly relate to any historical or current fact. Words such as“anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar
expressions which indicate future events and trends may identify “forward-looking statements.” Suchstatements are based on currently available information and are subject to various risks anduncertainties that could cause actual results to differ materially from those projected or implied in the“forward-looking statements” and from historical trends. Certain “forward-looking statements” arebased upon current assumptions of future events which may not prove to be accurate. Unduereliance should not be placed on “forward-looking statements,” as such statements speak only as ofthe 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 levelsof demand in the major industrial sectors Hitachi serves, including, without limitation, theinformation, electronics, automotive, construction and financial sectors;•exchange rate fluctuations of the yen against 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, 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 Digital Media & Consumer
Products segments;•

uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate newtechnologies on a timely and cost-effective basis and to achieve market acceptance for suchproducts;•rapid technological innovation;•

the possibility of cost fluctuations during the lifetime of, or cancellation of, long-term contracts forwhich 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, synthetic resins, rare metals and rare-earth minerals,
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 impactof fluctuations in product demand, exchange rates and/or price of raw materials or shortages ofmaterials, parts and components;•

uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen
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 competitiveness;•

uncertainty as to the success of 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- more --6-differences in commercial and business customs including, without limitation, contract terms andconditions 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 key products;•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 proceedingsof which the Company, its subsidiaries or its equity method affiliates have become or may
become parties;•the possibility of incurring expenses resulting from any defects in products or services of Hitachi;•

the possibility of disruption of Hitachi’s operations by earthquakes, tsunamis or other naturaldisasters;•

uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well asHitachi’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 in othermaterials published by Hitachi.

About Hitachi, Ltd.
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics
company with approximately 326,000 employees worldwide. Fiscal 2012 (ended March31, 2013) consolidated revenues totaled 9,041 billion yen ($96.1 billion). Hitachi isfocusing more than ever on the Social Innovation Business, which includes informationand telecommunication systems, power systems, industrial, transportation and urbandevelopment systems, as well as the sophisticated materials and key devices thatsupport them.
For more information on Hitachi, please visit the company's website at
http://www.hitachi.com.

###-------------------------------------------------------------------------------------------------------------------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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