Introduction
Past Mid-term Management Plans

Value Creation
10-year Financial Data

Transformation

5-year Non-financial Data

Business Strategies

DataGovernanceCorporate Data and Stock Information

Past Mid-term Management Plans
Mid-term Management Plan 2012 (FY2010–2012)
Rebuilding ManagementRecovery

1. Created a product-based company systemclarifying responsibilities and authority• Clarified responsibility and authority through		 introduction of an in-house company system•	Consolidated business into six groups, focusedon growth fields under an integrated system ofoperations, and accelerated management
2. Rebuilt/Withdrew from low-profit businesses• Automotive systems business:		 Rebuilt through structural reform• Flat-panel TV business:		 Withdrew from in-house production• HDD business: Divestiture
3. Strengthened cost competitiveness•	Started “Hitachi Smart Transformation Project”
for cost structure reform• Expanded centralized purchasing and global		procurement• Optimized and consolidated manufacturing sites

Corporate Strategy

Mid-term Management Plan 2015 (FY2013–2015)
Building a Foundation for Growth

The Swapping Out of Businesses

Achievements

Hitachi Integrated Report 2023

Mid-term Management Plan 2018 (FY2016–2018)
Strengthened the Social Innovation BusinessLeveraging Digital Technologies

Challenges

Challenges• Realizing further improvements to business profitability• Enhancing business with social innovation as a core
• Developing business globally• Speeding up management to rapidly respond to changes in market environments• Launching a platform for digital growth• Addressing low-profit businesses to improve profitability

Achievements

Achievements

1. Promoted the Social Innovation Business on a global
basis by strengthening frontline functions• Expanded service businesses through the use of digitalization• Strengthened digital capabilities through the acquisition		
of Pentaho
2. Reviewed non-core businesses• Thermal power business: Established joint-venture		 firm with Mitsubishi Heavy Industries• Air-conditioning business: Established joint-venture		 firm with Johnson Controls• Batteries business: Relisted Hitachi Maxell, drew		 down HItachi’s stake in the company
3. Promoted globalization• Relocated the railway systems business headquarters		 to the United Kingdom• Introduced Global Performance Management aimed		at enhancing the use of global human capital

1. Transitioned away from a product-based company
system to a three-level structure comprising 		
frontline, platform, and product tiers• Accelerated decision-making with the introduction		
of a business unit system
2. Strengthened the global front line
• Bolstered global frontline operations through 				acquisitions (Ansaldo STS, Sullair)
3. Expanded the digital solutions business with Lumada• Launched Lumada• Established Hitachi Vantara to deliver digital solutions• Lumada business revenue grew to 1 trillion yen

4. Executed ongoing business reviews• Divestiture and deconsolidation of listed		subsidiaries		 Divestiture of Hitachi Koki and Clarion		 Sold a part of shares in Hitachi Transport		 System, Hitachi Capital, and Hitachi Kokusai		Electric• Reduced/Withdrew from low-profit businesses		 such as the information and telecommunications		 equipment business and the overseas EPC		business

Mid-term Management Plan 2021 (FY2019–2021)
Realized Social Innovation with Digitalization,(Billions of yen)

Challenges•	Business growth through expansion ofco-creation with Lumada as a core
• Completing business portfolio revisions• Improving capital efficiency

Performance targets and results
Although targets at the start of fiscal
2019 were revised due to the COVID-19
pandemic in 2020, revenue expanded,
profitability was maintained, operating cash
flows were generated, and net income
attributable to Hitachi, Ltd. stockholders
reached an all-time high.

Built a Platform for Global GrowthMid-term Management
Plan 2021 targets(as announced in April 2021)

FY2021
results

9,500.0

10,264.6

Adjusted operating
income/ratio

740.0 / 7.8%

738.2 / 7.2%

Net income attributable toHitachi, Ltd. stockholders

550.0583.4

Over 2,100

Approx. 2,1008.3%

7.7%

Revenue

Operating cash flows(FY2019–2021 cumulative total)

ROICAchievements
1. Launched the digital business platform and achieved growth•	Launched the Lumada Solution Hub and Lumada
Alliance Program•	Expanded Lumada business revenue from 1.1 trillion
yen to 1.6 trillion yen
2. Enhanced efforts toward digital and environmental growth•	2019: Acquired JR Automation• 2020: Made Hitachi High-Tech a wholly owned			subsidiary			
Established Hitachi ABB Power Grids			
(now Hitachi Energy)• 2021: Established Hitachi Astemo			
Acquired GlobalLogic			
Transferred the diagnostic imaging–related business			
Participated in COP26 as a principal partner

3. Reinforced and improved the business foundation
by resolving management issues• Made progress in reviewing the capital policies		 of listed subsidiaries		• Divestiture of Hitachi Chemical and Hitachi Metals*		
• Sale of a part of shares in Hitachi Construction		 Machinery and Hitachi Transport System*• Responded to management issues		• Settled with Mitsubishi Heavy Industries on		 South Africa projects		
• Withdrew business operations on the U.K.
nuclear power stations construction project•	Promoted diversity, increased digital talent, andenhanced risk management* Completed in FY202248

Introduction
Past Mid-term Management PlansValue Creation
10-year Financial Data

Transformation

5-year Non-financial Data

Business Strategies

Hitachi Integrated Report 2023

Data

GovernanceCorporate Data and Stock Information

10-year Financial Data

Annual Securities Report

Information for Shareholders and Investors (Financial Information)
Millions of yen

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

8,729,196

10,264,602

10,881,150

For the year:

U.S. GAAP (through FY2013)

Revenues

9,563,791

9,774,930

10,034,305

9,162,264

9,368,614

9,480,619

8,767,263

538,288641,325

634,869

587,309714,630

754,976

661,883

495,180738,236

748,144

ー

ーーー

ー

ー

ー

609,107855,380

884,606

585,662534,059

531,003475,182644,257

513,906

183,614850,287

850,951845,632ーーーー

ー

885,318

619,001

1,343,067

1,392,840

1,373,468

264,975

217,482

172,155

231,261

362,988

222,546

87,596501,613583,470649,124

54.86

45.04

35.65

47.90

375.93230.4790.71

519.29603.75684.55

Net cash provided by operating activities

439,406

451,825

812,226

629,582

727,168

610,025

560,920

793,128

729,943827,045

Net cash used in investing activities(491,363)(612,545)(730,799)(337,955)(474,328)(162,872)(525,826)(458,840)(1,048,866)

151,063

Adjusted operating income
Adjusted EBITAEBIT
EBITDANet income attributable to Hitachi, Ltd. stockholders
Earnings per share attributable to Hitachi, Ltd. stockholders, basic (yen)IFRS (from FY2014)

32,968233,206(26,467)(209,536)(321,454)(320,426)

2,837(184,838)

202,739(1,142,966)(186,042)(176,448)

113,371

100,215

283,593

136,079

135,441

419,848

290,082

416,460(38.52)(36.54)

23.48

20.76

293.70140.92140.25434.64300.16439.19849,877

431,201

528,551

377,545374,901

414,798

399,643

359,897388,747

349,756

Depreciation (Tangible fixed assets and investment property)

329,833

350,783

366,547

302,757

265,413271,682

342,450

345,201

382,922

358,412

R&D expenditures

351,426

334,814

333,730

323,963

332,920

323,145

293,799

293,571

317,383

316,280

Total assets

11,016,899

12,433,727

12,551,0059,663,917

10,106,603

9,626,592

9,930,081

11,852,853

13,887,502

12,501,414

Property, plant and equipment

2,342,091

2,472,497

2,500,226

1,998,411

2,124,827

1,956,685

2,165,311

2,408,887

2,478,901

1,700,471

Net cash provided by (used in) financing activities
Core free cash flows
Core free cash flows per share, basic (yen)Capital investment (Tangible fixed assets and investment property)

Total Hitachi, Ltd. stockholders’ equity

2,651,241

2,942,281

2,735,078

2,967,085

3,278,024

3,262,603

3,159,986

3,525,502

4,341,836

4,942,854

Interest-bearing debt

2,823,049

3,557,356

3,604,455

1,176,603

1,050,294

1,004,771

1,485,042

2,397,356

3,126,712

2,213,348%

Adjusted EBITA ratio

ーーーー

―

―

―

7.0

8.3

8.1

Return on invested capital (ROIC)

ーーー

ー

―

8.5

9.4

6.4

7.7

7.6

Return on equity (ROE)

11.2

7.8

6.1

8.1

11.6

6.8

2.7

15.0

14.8

14.0

Return on assets (ROA)

3.5

2.9

2.4

3.0

5.0

3.3

1.3

4.8

5.2

5.3

D/E ratio (Including non-controlling interests) (times)

0.73

0.83

0.87

0.29

0.23

0.23

0.35

0.54

0.58

0.41

Total Hitachi, Ltd. stockholders’ equity ratio

24.1

23.7

21.8

30.7

32.4

33.9

31.8

29.7

31.3

39.5

50,71057,94457,93962,76472,41686,90591,792

101,517

120,905

336,593

0

0

0

0

0

0

0

0

0

199,999

Total shareholder return (millions of yen)including Share buybacks (millions of yen)
Dividend per share (yen)

10.5

12.0

12.0

13.0

75.0

90.0

95.0

105

125

145

Dividend payout ratio

19.1

26.6

33.7

27.1

20.0

39.1

104.8

20.2

20.7

21.0

Notes 1 Terminology differs under U.S. GAAP and IFRS for the following line items (U.S. GAAP/IFRS)• Sales/Revenues • Operating income/Adjusted operating income• Net income attributable to shareholders/Net income attributable to Hitachi, Ltd. stockholders• Net income per share attributable to Hitachi, Ltd. stockholders, basic/Earnings per share attributable to Hitachi, Ltd. stockholders, basic• Stockholders’ equity/Total Hitachi, Ltd. stockholders’ equity
2 Adjusted operating income is presented as revenues less selling, general and administrative expenses, as well as cost of sales.

3 Adjusted EBITA = Adjusted operating income + Acquisition–related amortization + Share of profits (losses) of investments accounted for using the equity method
4 “Core free cash flows” are net cash provided by operating activities minus capital expenditures.
5 On October 1, 2018, the company completed the share consolidation of every five shares into one share for its common stock. Basic earnings per share attributable
to Hitachi, Ltd. stockholders, basic core free cash flows per share and dividend per share are calculated on the assumption that the company conducted thisconsolidation at the beginning of the previous fiscal year.
6 ROA (Return on assets) = Net income / Total Assets (Average between the end of current fiscal year and the end of previous fiscal year) X 100

49

Introduction

Value Creation

Past Mid-term Management Plans

10-year Financial Data

Transformation

Business Strategies

Hitachi Integrated Report 2023

Data

GovernanceCorporate Data and Stock Information

5-year Non-financial Data

5-year Non-financial Data
Human Capital
Number of employeesSustainability Report

FY2018FY2019FY2020

FY2021

FY2022

Hitachi Group

295,941

301,056

350,864

368,247

322,525

Occurrence Rate (TRIFR*9*10)(Hitachi Group)

CY2018CY2019CY2020CY2021

FY2021

FY2022
0.26

Hitachi, Ltd.

33,49031,442

29,85029,48528,672Global total

̶

0.37

0.29

0.28

0.27

Average service (years)*1

Hitachi Group

15.1

15.0

13.6

13.5

12.6

Japan

̶

0.17

0.14

0.12

0.12

0.14

Turnover ratio (%)*1*2*3

Hitachi Group

6.3

5.2

4.3

7.5

8.5

Asia (excluding Japan)

̶

0.30

0.170.12

0.11

0.09

The Americas

̶

1.66

1.54

1.36

1.20

1.10

Europe

̶

0.53

0.45

0.38

0.45

0.39

5322

5

Percentage of Positive Responses to Employee Engagement Questions*4 (Hitachi Group)
60

60

6265

69.5

Japan

̶

̶

̶

56

61.2

Overseas

̶

̶

̶

80

82.3

Global average (%)
By region (%)

Digital Talent*5 (Hitachi Group)

Number of fatal accidents*100[Scope of Data]̶

30,00035,00067,00083,000Japan̶

19,00023,00029,00042,000Overseas̶

11,00012,00038,00041,000

18.8

19.4

19.1

20.2

22.3

8.9
(4,302)9.5(4,641)

9.8(4,762)

13.0(8,461)

Global (persons)
By region

Occupational Health and Safety (Hitachi Group*11)*9 TRIFR: Total Recordable Injury Frequency Rate (number of deaths and injuries per 200,000 working hours)*10	The number for each year is the number from January to December up to fiscal 2020. The counting period for the total recordable injury frequency
rate (TRIFR) and the number of fatal accidents changed to numbers from April to March from fiscal 2021, after safety targets in the Mid-termManagement Plan 2024 were set.
*11 Includes contractors

Diversity, Equity and Inclusion
Ratio of female employees (%)*1*2 Hitachi Group
Ratio of female managers(%/persons)*1*2*6*7

Hitachi Group

8.3(3,975)

Ratio of female managers(%/persons)*6*8

Hitachi, Ltd.

4.8(635)

5.5(700)

6.5(768)

6.8(785)

7.4(826)

June 2019

July 2020

June 2021

June 2022

June 2023

Number of female executives

45799

Ratio of female executives (%)

11.4

Ratios of Female and Non-Japanese
Executives* (Hitachi, Ltd.)

5.0

7.1

10.1

12.2

Number of non-Japanese executives

7681316

Ratio of non-Japanese executives (%)

8.8

8.6

11.6

17.6

20.3

* Executive Officers and Corporate Officers[Scope of Data]*1 Approximately 20,000 manufacturing workers not registered in the employee database and approximately 8,000 employees of some newly
consolidated companies are not included.
*2 The figures are based on enrolled employees with employment contracts including those seconded from the Hitachi Group to other companies andthose taking leave, and excluding those seconded from other companies to the Hitachi Group (as of March 31).
*3 Figures include only voluntary resignations.
*4 Questions change slightly each year. Above figures are not adjusted for changes in questions. In fiscal 2022, the composition of questions measuring
employee engagement was revised. The percentage was calculated from the average of the percentage of positive responses to the following
four questions: pride in working for Hitachi; whether it is a great place to work that one would recommend to others; job satisfaction and sense ofaccomplishment; and desire to continue working for Hitachi for the foreseeable future.
*5 Disclosure initiated in fiscal 2019. We define digital talent as those who possess any of the 12 capabilities required for digital business, including
design thinking, data science, and security. The number of digital talent is the total number of persons under each capability (total number of people,in thousands).
*6 The increase in the number and percentage of female managers over time reflects improved coverage of our human capital databases and changes
in the number of consolidated companies.
*7 Figure does not include subsidiaries with unregistered employees at certain grades (positions).
*8 The figures are based on the number of employees including those seconded from Hitachi Group to other companies, those taking leave, and thoseseconded from other companies to Hitachi Group (as of March 31). Figures for fiscal 2021 exclude those seconded from other companies to Hitachi Group.

Sustainable Procurement Activities(Hitachi Group)

FY2018FY2019FY2020

FY2021

FY2022
1,374*13

Sustainability monitoring (companies)

345

291

271

[Human rights]
2,524*12[Environment]
708*12

Sustainability audits (companies)

24192725

128*14

Sustainability procurement seminars (companies)

126

59450359520*12 Sustainability monitoring in fiscal 2021 was focused on human rights and environmental risk assessment.
*13 Sustainability monitoring in fiscal 2022 was focused on environment, labor and human rights, sustainable procurement, and ethics.
*14 Including the number of companies audited by Hitachi Energy beginning fiscal 2022.

Environment (Hitachi Group)
CO2 emissions at business sites(factories and offices) (kt-CO2)

4,973

4,374

3,296

3,384

Waste and valuables generation (kt)

1,384

1,302

1,061

1,111356

Water Usage (million m3)

37.02

36.41

26.35

26.03

14.56

Atmospheric emissions of chemicalsubstances (kt)

4.35

3.88

2.37

2.50

1.09

CO2 Avoided Emissions through Products and Services: Target
Forecast

1,538

100 million metric tons / year (FY2024)
126.1 million metric tons / year** 3-year average during the Mid-term Management Plan 2024
[Scope of Data]
Data on the “Environment (Hitachi Group)” applies to business sites with a large environmental load that are classified as category A.** All Group business sites are classified into one of three categories: A, B, or C, based on the Criteria for Classification of Environmental Management
established by Hitachi, and the most suitable management is then conducted for each in accordance with the respective level of environmental risk. (See)page 2 of Hitachi Sustainability Report 2023.

50

Introduction
Past Mid-term Management Plans

Value Creation
10-year Financial Data

Transformation

5-year Non-financial Data

Business Strategies

Hitachi Integrated Report 2023

Data

GovernanceCorporate Data and Stock Information

Corporate Data and Stock Information (As of March 31, 2023)
Corporate NameURL
https://www.hitachi.com/Head Office
6-6, Marunouchi 1-chome, Chiyoda-ku,
Tokyo 100-8280, JapanFounded1910 (Incorporated in 1920)

Capital Stock462,817 million yen

Number of Employees (consolidated)322,525

Number of Shares Issued

Shareholder Composition

10 Largest Shareholders

Hitachi, Ltd.
(Kabushiki Kaisha Hitachi Seisakusho)

Name

Share ownership Shareholding ratio(shares)(%)*2

Number of Shareholders
276,429A dministrator of Shareholders’ Register
Tokyo Securities Transfer Agent Co., Ltd.
3-11, Kanda Nishiki-cho, Chiyoda-ku,
Tokyo 101-0054, Japan

Stock Exchange Listings
Tokyo, Nagoya

Accounting AuditorErnst & Young ShinNihon LLC

Contact

Share ownership(units)3110

170,613,800

18.20

Governments and municipalities

Custody Bank of Japan, Ltd. (Trust Account)

62,533,350

6.67

Financial institutions

179

3,186,976

State Street Bank and Trust Company 505223

24,766,482

2.64

 inancial instruments business
Foperators

66

250,814

GOVERNMENT OF NORWAY

24,582,891

2.62

Other institutions

2,234

117,951

Nippon Life Insurance Company

20,000,099

2.13

1,139

4,324,784

Hitachi Employees’ Shareholding Association

19,674,086

2.10

151

1,570

SSBTC CLIENT OMNIBUS ACCOUNT

19,566,283

2.09

213,906

1,476,105

NATS CUMCO*1

17,331,942

1.85

217,678

9,358,310

State Street Bank West Client - Treaty 505234

17,147,487

1.83

Number of shares less than one unit (shares)―

2,252,077

JP Morgan Chase Bank 385632

14,748,517

1.57* Of 510,830 shares of treasury stock, 5,108 units are included in the “Individualsand others” row, while 30 shares are included in the “Number of shares less thanone unit” row.

*1 NATS CUMCO is the nominee name of the depositary bank, Citibank, N.A., for the aggregate of the company’s
American Depositary Receipts (ADRs) holders.
*2 Treasury stock (510,830 shares) is not included in the shareholding ratio calculation.

Ratings(As of August 2023)
Rating Company

Foreigncorporations,etc.

Non-individuals
Individuals

Individuals and others
Total

Individuals and others

15.77%

Governments and municipalities

0.00%

Foreign corporations,etc. (individuals)

Long-term

Short-termStandard & Poor’s (S&P)

A

A–1

Moody’s Japan K.K. (Moody’s)

A3

P–2

Share ownership

Rating and Investment Information, Inc. (R&I)

AA–a –1+

9,358,310 units

Assurance
To enhance the reliability of the information it discloses, Hitachi uses a combined assurance model that
includes assurance obtained from executives and from external assurance providers. The supervisor isYoshihiko Kawamura, Executive Vice President and Executive Officer, CFO. Please refer to production
structure.
Some of the environmental, social, and governance data in the Hitachi Sustainability
Report 2023 has undergone third-party verification by KPMG AZSA Sustainability Co., Ltd.
Indicators Subject to Independent Assurance

Hitachi, Ltd.
TEL: +81-3-3258-1111

Number ofshareholders

The Master Trust Bank of Japan, Ltd. (Trust Account)(common stock, including treasury stock)938,083,077

Class of shareholders

Hitachi Group	Ratio and number of female managers and CO2 emissions at business sites
Hitachi, Ltd.	Ratio of non-Japanese executives, female executives, and ratio and number offemale managers

Financialinstitutions

0.02%

34.06%
Financial instruments
business operators

Foreign corporations
etc. (non-individuals)

2.68%

46.21%

Other institutions

1.26%

Integrated Reports Inquiries
Investor Relations Division+81-3-3258-1111

51