Industry/Distribution/Water
In this domain covering the Social Infrastructure & Industrial Systems segment, Hitachi develops products
and services such as industry/distribution solutions, water solutions, and industrial equipment. With a 108-year
manufacturing history since Hitachi was founded in 1910, we can supply everything from products for themanufacturing workplace to control systems for facilities and business support IT systems. Our goal is to be
the best solution partner for customers throughout industries worldwide.

Future Growth Drivers of the Business
Smart Manufacturing Solutions
Utilizing Lumada, our smart manufacturing solutions help customers invarious manufacturing industries to increase production efficiency, automateproduction, develop more reliable quality, transfer skills, or address otherproduction-related issues. Solution development often utilizes the high-efficiency
production model established at the Omika Works, or systems are developed in collaborative creation with customers. We offer a wide range ofsolutions, from manufacturing site visualization and predictive equipment
failure detection systems to debottlenecking support and production planning optimization. Reforming the manufacturing workplace using digitaltechnology helps our customers become more competitive.

Generating Post-acquisition Synergies with Sullair
In 2017, Hitachi acquired Sullair, a manufacturer of air compressors withoperations in North America, China, and other countries. This movestrengthened Hitachi’s global air compressor business. Air compressors are
an important source of power for various types of equipment used in factories,
and this market is expected to grow in the future. The combination of theSullair sales network with a range of products that incorporate Hitachi’s
high-level technical expertise in this field promises to help us expand thisbusiness globally. The acquisition will also support global expansion ofHitachi’s overall business in the Industry/Distribution/Water domain byaffording opportunities to supply Sullair customers with marking systems andother industrial equipment, as well as air compressors and digital solutions.
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Monitoring System for the Progress andOperational Status developed in collaborative
creation with Okuma Corporation

Town hall meeting at US factory of Sullair

Market-related Issues
In the Industry/Distribution/Water domain, we supply
products, systems, and services to a wide range ofcustomers, mostly manufacturers but also firms in theretail and transport sectors.
Today, to tackle challenges such as declining
working-age populations, increased workforce diversity,and supply chain globalization, manufacturers in Japanand other countries are looking to address urgent issues
such as making operations more efficient or labor-saving,or ensuring the transfer of technical know-how. Facedwith climate change, water shortages and other issues,
reducing the environmental impact of operations is alsoof increasing concern. These structural shifts within
industry and social issues are leading customers tofocus not only on our tangible products, but also on
intangible aspects such as the value that Hitachi canadd to their business.
Where Hitachi Is Focusing
In this domain, Hitachi can supply everything fromindustrial equipment for the manufacturing workplace(Products) to facility control systems (OperationalTechnology, OT) and IT systems to manage operations.
Our aim is to be the best solution partner for customers
based on our ability to supply the total package ofproducts, OT, and IT.
We have begun offering smart manufacturingsolutions that use Lumada, based on systems we havedeveloped in collaborative creation with Daicel
Corporation, Okuma Corporation, Daikin Industries andother customers for tackling manufacturing challenges
such as increasing production efficiency or transferring
technical know-how. We are reinforcing our lineup by
developing unique products that incorporate amorphous
motors with world-class efficiency. Our vision is to offer
the best solutions to customers by understanding
their issues based on Hitachi’s more than a century of
manufacturing heritage, and by developing value-added
combinations of products, OT, and IT.
Our Future Mission and Role
My objective is to scale up the business significantly
through closer links between the various divisions that I
lead. Including Group companies, the Industry/Distribution/
Water domain spans different industrial sectors andcustomer bases of differing size. Starting from thesystems and products offered by each of thesecompanies, we are expanding the business by providing

Feature: Four Focus Business Domains

Executive Vice President’s Message

Masakazu Aoki
Executive Vice President and Executive Officer

fully integrated Hitachi total solutions and services
aimed at raising production efficiency or developing
more sophisticated operations. Hitachi’s acquisition in2017 of the Sullair-branded air compressor businesshas also secured us new customer channels in North
America and China. Our customers in the industry
domain face the same issues worldwide. Leveraging
our experience in Japan and Hitachi’s strengths inproducts (manufacturing and production technology),
OT (control/operational technology), and IT (technologies
for data analysis and processing), we will develop theSocial Innovation Business using our digital technology
through approaches to a broad range of customers
around the world.

The Creation of Social Value
Solving issues for customers also helps to achieve
the SDGs. We will contribute to realizing a sustainable
society in which people can enjoy dynamic andcomfortable lives worldwide through the supply
of systems with low environmental impact andenergy-saving products.

SDG Focus

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